July 1, 2008

+-----------------------------------------------------------------------+
| > **TOPICS IN THIS REPORT**                                           |
| >                                                                     |
| > Field Crop Acreage                                                  |
| >                                                                     |
| > June 1 Hogs and Pigs, 16 States and U.S.                            |
| >                                                                     |
| > Pig Crop, Farrowing Intentions                                      |
+-----------------------------------------------------------------------+

**[Florida]{.smallcaps}:** Significant rains in early April elevated
soil moisture supplies. Cool temperatures slowed plant germination and
growth during mid-April. The potato harvest was underway in the Hastings
area with most fields yielding a good crop. Warm, dry daytime
temperatures and little rain towards the end of April increased the need
for irrigation of the later maturing crops. Peanut and cotton planting
began in parts of the Panhandle where fields had sufficient moisture.

Extreme drought conditions combined with gusty winds increased the
danger of wildfires during May. Several crop acres were stressed due to
the lack of rain. Hay was made where possible, but dry conditions left
the crop in short supply. Acres of cotton crop were replanted in areas
of the Panhandle due to inadequate moisture.

Warm, dry and windy conditions continued in early June. Wind damage
affected a small percentage of the wheat acreage in the Panhandle. The
drought persisted during the month which continued to affect all field
crops. Growers welcomed significant showers mid to late June. Some
pastures were still in poor condition despite recent rains.

**[Corn]{.smallcaps}:** Corn planted for all purpose totaled 75,000
acres and the acreage to be harvested for grain is estimated at 40,000
acres.

**[Cotton]{.smallcaps}:** Planted cotton acreage is projected at 72,000
acres, down nearly 15 percent from last year's 85,000 acres planted.

**[All Hay]{.smallcaps}:** Acreage of all types of hay, cut and to be
cut is estimated at 260,000 acres, down 13 percent or 40,000 acres from
last year.

[**Peanut**s]{.smallcaps}**:** Planted acreage of peanuts is estimated
at 120,000 acres, with 110,000 acres expected to be harvested for dry
nuts.

**[Soybeans]{.smallcaps}:** Planted acres of soybeans are estimated at
22,000 acres, with 20,000 acres expected to be harvested.

**[Sugarcane]{.smallcaps}:** Producers expect to harvest 405,000 acres
for the 2007-2008 season, up three percent from last year.

**[Wheat]{.smallcaps}:** Wheat planted is estimated at 25,000 acres and
the acreage to be harvested is projected at 23,000 acres.

+-----------------------+-----------+---------+-----------+-----------+
| **[Florida Crop       |           |         |           |           |
| A                     |           |         |           |           |
| creage]{.smallcaps}** |           |         |           |           |
+=======================+===========+=========+===========+===========+
| Crop                  | Planted   |         | Harvested |           |
|                       | for all   |         | or to be  |           |
|                       | purposes  |         | harvested |           |
|                       |           |         | ^1/^      |           |
+-----------------------+-----------+---------+-----------+-----------+
|                       | 2007      | 2008    | 2007      | 2008 ^2/^ |
+-----------------------+-----------+---------+-----------+-----------+
|                       | *1,000    |         |           |           |
|                       | acres*    |         |           |           |
+-----------------------+-----------+---------+-----------+-----------+
| All Corn              | 75        | 75      | 35        | 40        |
+-----------------------+-----------+---------+-----------+-----------+
| Soybeans              | 14        | 22      | 12        | 20        |
+-----------------------+-----------+---------+-----------+-----------+
| Peanuts               | 130       | 120     | 119       | 110       |
+-----------------------+-----------+---------+-----------+-----------+
| All Cotton            | 85        | 72      | 81        | ^3/^      |
+-----------------------+-----------+---------+-----------+-----------+
| All Hay               | \--       | \--     | 300       | 260       |
+-----------------------+-----------+---------+-----------+-----------+
| Sugarcane for Sugar   | \--       | \--     | 393       | 405       |
| and Seed              |           |         |           |           |
+-----------------------+-----------+---------+-----------+-----------+
| Winter Wheat          | 13        | 25      | 9         | 23        |
+-----------------------+-----------+---------+-----------+-----------+
| ^1/^ Harvested for    |           |         |           |           |
| principal use of each |           |         |           |           |
| crop, i.e., grain,    |           |         |           |           |
| beans, nuts, etc.     |           |         |           |           |
|                       |           |         |           |           |
| ^2/^ Forecasted.      |           |         |           |           |
|                       |           |         |           |           |
| ^3/^ Estimates to be  |           |         |           |           |
| released August 12,   |           |         |           |           |
| 2008.                 |           |         |           |           |
+-----------------------+-----------+---------+-----------+-----------+

**UNITED STATES CROP HIGHLIGHTS**

**[Corn:]{.smallcaps}** The 2008 corn planted area for all purposes is
estimated at 87.3 million acres, down seven percent from last year.
Growers expect to harvest 78.9 million acres for grain, down nine
percent from last year. Farmers responding to the survey indicated that
97 percent of the intended corn acreage had been planted at the time of
the interview compared with the 10-year average of 98 percent.

**[Winter Wheat:]{.smallcaps}** The 2008 winter wheat planted area is
estimated at. 46.6 million acres, down slightly from the previous
estimate but up four percent from 2007. Area harvested for grain is
forecasted at 40.3 million acres, up slightly from the June forecast and
up 12 percent from last year. Planted acreage declined from the previous
year in the Hard Red Winter growing region. Winter wheat heading
progress as of June 1 was behind the 5-year average in all States except
Arizona, California, and North Carolina.

**[Soybeans:]{.smallcaps}** The 2008 soybean planted area is estimated
at 74.5 million acres, up 17 percent from 2007. Planted area increased
from last year in all States, and is the third largest U.S. planted
soybean acreage on record. The area for harvest is forecast at 72.1
million acres, up 15 percent from 2007.

**[Hay]{.smallcaps}:** Producers expect to harvest 60.4 million acres of
all hay in 2008, down two percent from 2007. Harvested area is expected
to decrease from last year throughout the Great Plains and the West.
Increased acres are expected to be harvested along the East Coast.

**[Peanuts:]{.smallcaps}** Area planted to peanuts in 2008 is estimated
at 1.46 million acres, up 19 percent from 2007 and 18 percent more than
was planted in 2006. Area for harvest is forecast at 1.43 million acres
compared with 1.20 million harvested last year. Higher prices received
in 2007, coupled with attractive contract prices in 2008, are the main
reasons for the increase in acreage.

**[Cotton:]{.smallcaps}** The 2008 all cotton planted area is estimated
at 9.25 million acres, down 15 percent from last year. Upland cotton
planted area totals 9.04 million acres, down 14 percent from 2007 and
the lowest acreage since 1983. Upland growers in the Southeastern States
(Alabama, Florida, Georgia, North Carolina, South Carolina, and
Virginia) planted 1.87 million acres, down 17 percent from last year. By
mid-June, planting was virtually complete throughout the region. The
crop is rated in mostly fair to good condition throughout the region.
Producers planted 86 percent of their upland acreage with seed varieties
developed using biotechnology, down one percent from last year.

**[Sugarcane:]{.smallcaps}** Area for harvest of sugarcane for sugar and
seed during the 2008 crop year is forecast at 871,500 acres, down one
percent from 2007. Area for harvest in Louisiana is down 15,000 acres
from last year, while Florida growers expect to harvest 12,000 more
acres than last year. In Louisiana, crop conditions for sugarcane have
been improving from mostly fair to good, to good and excellent. In
Florida, sporadic rains during May boosted growth.

+------------------+-------------+-----------+------------+-----------+
| **[United States |             |           |            |           |
| Crop             |             |           |            |           |
| Acreag           |             |           |            |           |
| e]{.smallcaps}** |             |           |            |           |
+------------------+-------------+-----------+------------+-----------+
| Crop             | Planted for |           | Harvested  |           |
|                  | all         |           | or to be   |           |
|                  | purposes    |           | harvested  |           |
|                  |             |           | ^1/^       |           |
+------------------+-------------+-----------+------------+-----------+
|                  | 2007        | 2008      | 2007       | 2008 ^2/^ |
+------------------+-------------+-----------+------------+-----------+
|                  | *1,000      |           |            |           |
|                  | acres*      |           |            |           |
+------------------+-------------+-----------+------------+-----------+
| Corn             | 93,600      | 87,327    | 86,542     | 78,940    |
+------------------+-------------+-----------+------------+-----------+
| Sorghum          | 7,718       | 7,271     | 6,805      | 6,405     |
+------------------+-------------+-----------+------------+-----------+
| Oats             | 3,760       | 3,467     | 1,505      | 1,443     |
+------------------+-------------+-----------+------------+-----------+
| All wheat        | 60,433      | 63,457    | 51,011     | 56,586    |
+------------------+-------------+-----------+------------+-----------+
| Winter wheat     | 44,987      | 46,605    | 35,952     | 40,252    |
+------------------+-------------+-----------+------------+-----------+
| Soybeans         | 63,631      | 74,533    | 62,820     | 72,121    |
+------------------+-------------+-----------+------------+-----------+
| Peanuts          | 1,230       | 1,461     | 1,195      | 1,426     |
+------------------+-------------+-----------+------------+-----------+
| All cotton       | 10,827.2    | 9,246.0   | 10,489.1   | ^3/^      |
+------------------+-------------+-----------+------------+-----------+
| All hay          | \--         | \--       | 61,625     | 60,439    |
+------------------+-------------+-----------+------------+-----------+
| All tobacco      | \--         | \--       | 356.0      | 348.0     |
+------------------+-------------+-----------+------------+-----------+
| Sugarbeets       | 1,268.8     | 1,080.1   | 1,246.8    | 1,027.3   |
+------------------+-------------+-----------+------------+-----------+
| Sugarcane for    | \--         | \--       | 879.6      | 871.5     |
| sugar and seed   |             |           |            |           |
+------------------+-------------+-----------+------------+-----------+
| ^1/^ Harvested   |             |           |            |           |
| for principal    |             |           |            |           |
| use of each      |             |           |            |           |
| crop, i.e.,      |             |           |            |           |
| grain, beans,    |             |           |            |           |
| nuts, etc.       |             |           |            |           |
|                  |             |           |            |           |
| ^2/^ Forecasted. |             |           |            |           |
|                  |             |           |            |           |
| ^3/^ Estimates   |             |           |            |           |
| to be released   |             |           |            |           |
| August 12, 2008. |             |           |            |           |
+------------------+-------------+-----------+------------+-----------+

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 10%" />
</colgroup>
<thead>
<tr class="header">
<th colspan="10">Number range CHAPTER <strong><span
class="smallcaps">Hogs and Pigs</span></strong>: Breeding, market, and
total inventory, June 1, 2007 and 2008</th>
</tr>
<tr class="odd">
<th rowspan="2">State</th>
<th colspan="3">Breeding</th>
<th colspan="3">Market</th>
<th colspan="3">Total</th>
</tr>
<tr class="header">
<th>2007</th>
<th>2008</th>
<th><p>2008</p>
<p>As % of</p>
<p>2007</p></th>
<th>2007</th>
<th>2008</th>
<th><p>2008</p>
<p>As % of</p>
<p>2007</p></th>
<th>2007</th>
<th>2008</th>
<th><p>2008</p>
<p>As % of</p>
<p>2007</p></th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td></td>
<td colspan="2"><em>1,000 head</em></td>
<td></td>
<td colspan="2"><em>1,000 head</em></td>
<td></td>
<td colspan="2"><em>1,000 head</em></td>
<td></td>
</tr>
<tr class="even">
<td>AR</td>
<td>85</td>
<td>95</td>
<td>112</td>
<td>205</td>
<td>215</td>
<td>105</td>
<td>290</td>
<td>310</td>
<td>107</td>
</tr>
<tr class="odd">
<td>CO</td>
<td>150</td>
<td>150</td>
<td>100</td>
<td>690</td>
<td>620</td>
<td>90</td>
<td>840</td>
<td>770</td>
<td>92</td>
</tr>
<tr class="even">
<td>IL</td>
<td>440</td>
<td>440</td>
<td>100</td>
<td>3,560</td>
<td>3,910</td>
<td>110</td>
<td>4,000</td>
<td>4,350</td>
<td>109</td>
</tr>
<tr class="odd">
<td>IN</td>
<td>310</td>
<td>300</td>
<td>97</td>
<td>3,040</td>
<td>3,400</td>
<td>112</td>
<td>3,350</td>
<td>3,700</td>
<td>110</td>
</tr>
<tr class="even">
<td>IA</td>
<td>1,080</td>
<td>1,090</td>
<td>101</td>
<td>17,120</td>
<td>18,310</td>
<td>107</td>
<td>18,200</td>
<td>19,400</td>
<td>107</td>
</tr>
<tr class="odd">
<td>KS</td>
<td>165</td>
<td>160</td>
<td>97</td>
<td>1,735</td>
<td>1,630</td>
<td>94</td>
<td>1,900</td>
<td>1,790</td>
<td>94</td>
</tr>
<tr class="even">
<td>MI</td>
<td>110</td>
<td>100</td>
<td>91</td>
<td>920</td>
<td>930</td>
<td>101</td>
<td>1,030</td>
<td>1,030</td>
<td>100</td>
</tr>
<tr class="odd">
<td>MN</td>
<td>610</td>
<td>580</td>
<td>95</td>
<td>6,390</td>
<td>7,020</td>
<td>110</td>
<td>7,000</td>
<td>7,600</td>
<td>109</td>
</tr>
<tr class="even">
<td>MO</td>
<td>375</td>
<td>375</td>
<td>100</td>
<td>2,675</td>
<td>2,775</td>
<td>104</td>
<td>3,050</td>
<td>3,150</td>
<td>103</td>
</tr>
<tr class="odd">
<td>NE</td>
<td>360</td>
<td>360</td>
<td>100</td>
<td>2,790</td>
<td>3,040</td>
<td>109</td>
<td>3,150</td>
<td>3,400</td>
<td>108</td>
</tr>
<tr class="even">
<td>NC</td>
<td>1,020</td>
<td>1,020</td>
<td>100</td>
<td>8,680</td>
<td>9,080</td>
<td>105</td>
<td>9,700</td>
<td>10,100</td>
<td>104</td>
</tr>
<tr class="odd">
<td>OH</td>
<td>165</td>
<td>165</td>
<td>100</td>
<td>1,505</td>
<td>1,735</td>
<td>115</td>
<td>1,670</td>
<td>1,900</td>
<td>114</td>
</tr>
<tr class="even">
<td>OK</td>
<td>360</td>
<td>360</td>
<td>100</td>
<td>1,960</td>
<td>2,000</td>
<td>102</td>
<td>2,320</td>
<td>2,360</td>
<td>102</td>
</tr>
<tr class="odd">
<td>PA</td>
<td>100</td>
<td>95</td>
<td>95</td>
<td>1,020</td>
<td>1,085</td>
<td>106</td>
<td>1,120</td>
<td>1,180</td>
<td>105</td>
</tr>
<tr class="even">
<td>SD</td>
<td>145</td>
<td>150</td>
<td>103</td>
<td>1,145</td>
<td>1,290</td>
<td>113</td>
<td>1,290</td>
<td>1,440</td>
<td>112</td>
</tr>
<tr class="odd">
<td>TX</td>
<td>110</td>
<td>110</td>
<td>100</td>
<td>890</td>
<td>970</td>
<td>109</td>
<td>1,000</td>
<td>1,080</td>
<td>108</td>
</tr>
<tr class="even">
<td>WI</td>
<td>50</td>
<td>45</td>
<td>90</td>
<td>360</td>
<td>355</td>
<td>99</td>
<td>410</td>
<td>400</td>
<td>98</td>
</tr>
<tr class="odd">
<td>Oth States<sup>1/</sup></td>
<td>485</td>
<td>474</td>
<td>98</td>
<td>3,145</td>
<td>3,226</td>
<td>103</td>
<td>3,631</td>
<td>3,701</td>
<td>102</td>
</tr>
<tr class="even">
<td>US</td>
<td>6,120</td>
<td>6,069</td>
<td>99</td>
<td>57,830</td>
<td>61,591</td>
<td>107</td>
<td>63,951</td>
<td>67,661</td>
<td>106</td>
</tr>
<tr class="odd">
<td colspan="10"><sup>1/</sup> Individual State estimates not available
for the 33 other States.</td>
</tr>
</tbody>
</table>

  ----------------------------------------------------------------------------------------------
  **[Market Hogs and                                                                    
  Pigs]{.smallcaps}**:                                                                  
  Inventory by weight                                                                   
  groups, June 1, 2007                                                                  
  and 2008                                                                              
  ---------------------- -------- -------- -------- -------- --------- -------- ------- --------
  State                  Under 60          60-119            120-179            180 lbs 
                         lbs               lbs               lbs                and     
                                                                                over    

                         2007     2008     2007     2008     2007      2008     2007    2008

                         *1,000                                                         
                         head*                                                          

  AR                     150      160      20       20       15        15       20      20

  CO                     375      320      100      115      85        70       130     115

  IL                     1,310    1,420    920      990      760       850      570     650

  IN                     1,120    1,240    780      880      590       670      550     610

  IA                     5,450    5,500    4,770    4,910    3,850     4,450    3,050   3,450

  KS                     620      550      340      325      335       275      440     480

  MI                     330      330      215      230      195       185      180     185

  MN                     2,570    2,760    1,620    1,760    1,300     1,470    900     1,030

  MO                     1,300    1,330    545      565      505       475      325     405

  NE                     1,040    1,130    730      810      580       650      440     450

  NC                     3,600    3,700    2,000    2,150    1,670     1,760    1,410   1,470

  OH                     600      650      375      435      315       400      215     250

  OK                     940      1,000    315      300      230       230      475     470

  PA                     300      330      305      315      225       235      190     205

  SD                     425      485      270      305      240       260      210     240

  TX                     285      325      215      225      200       200      190     220

  WI                     155      140      85       90       65        60       55      65

  Oth States^1/^         1,212    1,217    734      742      630       652      570     616

  US                     21,782   22,587   14,339   15,167   11,790    12,907   9,920   10,931

  ^1/^ Individual State                                                                 
  estimates not                                                                         
  available for the 33                                                                  
  other States.                                                                         
  ----------------------------------------------------------------------------------------------

> **UNITED STATES**: HOGS AND PIGS
>
> U.S. inventory of all hogs and pigs on June 1, 2008 was 67.7 million
> head. This was up six percent from June 1, 2007 and up one percent
> from March 1, 2008.
>
> Breeding inventory, at 6.07 million head, was down one percent from
> last year, and down one percent from the previous quarter. Market hog
> inventory, at 61.6 million head, was up seven percent from last year,
> and up one percent from last quarter.
>
> The March - May 2008 U.S. pig crop, at 29.0 million head, was up four
> percent from 2007 and up nine percent from 2006. Sows farrowing during
> this period totaled 3.09 million head, up two percent from 2007 and up
> six percent from 2006. The sows farrowed during this quarter
> represented 51 percent of the breeding herd. The average pigs saved
> per litter was 9.38 for the March - May 2008 period, compared to 9.20
> last year. Pigs saved per litter by size of operation ranged from 7.70
> to 9.40.
>
> U.S. hog producers intend to have 3.07 million sows farrow during the
> June-August 2008 quarter, down two percent from the actual farrowings
> during the same period in 2007, but up five percent from 2006.
> Intended farrowings for September-November 2008, at 3.05 million sows,
> are down four percent from 2007 but up three percent from 2006.
>
> The total number of hogs owned by operations with over 5,000 head, but
> raised by contractees, accounted for 41 percent of the total U.S. hog
> inventory. This was up from 39 percent last year.

+---------------------------+-------------+-------------+--------------+
| [**Hogs and Pigs:**       |             |             |              |
| U.S]{.smallcaps}.         |             |             |              |
| inventory number, sows    |             |             |              |
| farrowing, and pig crop,  |             |             |              |
| 2007 and 2008.            |             |             |              |
+===========================+=============+=============+==============+
|                           | 2007        | 2008        | 2008         |
|                           |             |             |              |
|                           |             |             | as % of      |
|                           |             |             |              |
|                           |             |             | 2007         |
+---------------------------+-------------+-------------+--------------+
|                           | *1,000      |             |              |
|                           | head*       |             |              |
+---------------------------+-------------+-------------+--------------+
| June 1 Inventory          |             |             |              |
+---------------------------+-------------+-------------+--------------+
| All hogs and pigs         | 63,951      | 67,661      | 106          |
+---------------------------+-------------+-------------+--------------+
| Kept for breeding         | 6,120       | 6,069       | 99           |
+---------------------------+-------------+-------------+--------------+
| Market                    | 57,830      | 61,591      | 107          |
+---------------------------+-------------+-------------+--------------+
| Market hogs and pigs      |             |             |              |
|                           |             |             |              |
| by weight groups:         |             |             |              |
+---------------------------+-------------+-------------+--------------+
| Under 60 pounds           | 21,782      | 22,587      | 104          |
+---------------------------+-------------+-------------+--------------+
| 60-119 pounds             | 14,339      | 15,167      | 106          |
+---------------------------+-------------+-------------+--------------+
| 120-179 pounds            | 11,790      | 12,907      | 109          |
+---------------------------+-------------+-------------+--------------+
| 180 pounds                | 9,920       | 10,931      | 110          |
+---------------------------+-------------+-------------+--------------+
| Sows farrowing:           |             |             |              |
+---------------------------+-------------+-------------+--------------+
| December^1/^-February     | 2,905       | 3,067       | 106          |
+---------------------------+-------------+-------------+--------------+
| **March-May**             | **3,033**   | **3,092**   | **102**      |
+---------------------------+-------------+-------------+--------------+
| December^1/^-May          | 5,938       | 6,159       | 104          |
+---------------------------+-------------+-------------+--------------+
| June-August^2/^           | 3,132       | 3,070       | 98           |
+---------------------------+-------------+-------------+--------------+
| September-November ^2/^   | 3,180       | 3,052       | 96           |
+---------------------------+-------------+-------------+--------------+
| June-November^2/^         | 6,312       | 6,122       | 97           |
+---------------------------+-------------+-------------+--------------+
| Pig crop:                 |             |             |              |
+---------------------------+-------------+-------------+--------------+
| December^1/^-February     | 26,396      | 28,352      | 107          |
+---------------------------+-------------+-------------+--------------+
| **March-May**             | **27,896**  | **29,000**  | **104**      |
+---------------------------+-------------+-------------+--------------+
| December^1/^-May          | 54,293      | 57,352      | 106          |
+---------------------------+-------------+-------------+--------------+
| June-August               | 29,094      |             |              |
+---------------------------+-------------+-------------+--------------+
| September-November        | 29,511      |             |              |
+---------------------------+-------------+-------------+--------------+
| June-November             | 58,606      |             |              |
+---------------------------+-------------+-------------+--------------+
| ^1/^ December preceding   |             |             |              |
| year.                     |             |             |              |
|                           |             |             |              |
| ^2/^ Intentions for 2008. |             |             |              |
+---------------------------+-------------+-------------+--------------+