FarmWeek August 16 2010

Page 1

WITH MATTOON pulling out of FutureGen contention, Tuscola is eyeing a possible second chance at a scaled-down project. ..2

G O V. PA T Q U I N N h a s restored some of the agricultural education funding that previously had been eliminated. ......................3

ARE THERE ENOUGH votes in the House to restore the biodiesel tax credit without attaching it to a tax bill? One congressman wonders. .......5

Monday, August 16, 2010

Two sections Volume 38, No. 33

Estate tax restoration a sobering prospect BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

After years of delay in federal estate tax relief, farm families soon may be confronting “a scary reality,” U.S. Rep. Aaron Schock warned last week. The Peoria Republican told FarmWeek he is frustrated by a lack of congressional action on a series of tax issues, from extension of expired biodiesel and soon-to-expire ethanol tax credits (see page 5) to a longterm estate tax fix. Under 2001 Bush tax reform measures set to “sunset” at year’s end, estate tax exemptions phased up from $1 million per individual to $3.5 million in 2009 before the tax itself disappeared entirely for 2010. However, without congressional intervention, farm heirs could again face a mere $1 million exemption and a high 55 percent tax rate in 2011. The House has approved restoring a $3.5 million perperson exemption, but Farm Bureau supports Senate Ag Committee Chairman Blanche Lincoln’s (D-Ark.) bipartisan proposal to raise exemptions to $5 million per individual ($10 million per couple), adjusted for inflation, at a 35 percent top rate. Routine Illinois land values

alone easily can push farm estates over a $1 million threshold, Illinois Farm Business Farm Management (FBFM) analyst Bradley Zwilling said. Defaulting to a $1 million exemption “does not help our economy grow,” Schock said during a stop last week at Illi-

nois Farm Bureau board member Dale Hadden’s Jacksonville farm. “I’m not positive we will do something by this December, which would be a very scary reality for farmers who face a $1 million estate tax penalty,” he warned.

ATVs again allowed on the road — legally

“There are some people in Washington who believe death should be a taxable event — that because you pass away, the federal government should be entitled to a certain amount of your assets, no matter what that level is. We need to show them how $1 million, $3 million, even $5 million affects many of the small business people in America.” With statewide land prices averaging $4,650 per acre (per USDA’s latest figures), even a farm with “200 bare acres” of owned ground could trigger tax liability, without factoring equipment or other assets, he said. Hadden said Morgan County-area prices have been running $6,000-$8,000 for prime ground and $3,000-$5,500 for “C soil type” land. According to USDA’s 2007 ag census, 29.4 percent of Illinois farms topped $1 million in fair market value of land and buildings alone. In 2009, some 2,500 opera-

tors surveyed by FBFM averaged $2.2 million in total assets, including an average $1.1 million in land and other fixed assets vs. average total assets of $1.6 million in FBFM’s 2006 survey. “If you have a combine, a barn, and a few hundred acres, you’re there,” Schock noted. Lincoln’s estate tax measure also would include full “stepped-up basis,” enabling heirs to take fair market value of an estate for capital gains purposes and pay capital gains tax on the difference between the net sales price and that stepped-up basis once they sell assets. That helps producers who must liquidate some assets or heirs who buy out a sibling’s share of their inheritance, Zwilling told FarmWeek. But if the estate tax reverts to pre-2001 levels, Hadden said, “families are going to have to sit down at the table and reassess their goals” in terms of farm succession.

FARMER’S LITTLE HELPERS

of state legislation. Under state law, an ATV Farmers again can legally operator needs a valid driver’s drive all-terrain vehicles license to drive on a county (ATVs) and utility-terrain or township road, according vehicles (UTVs) on county to Kevin Rund, IFB senior and township roads for farm- director of local government. ing purposes. Gov. Pat Quinn Rund reminded ATV ownsigned the legislation last ers they also need insurance week. on the vehicle in order to The matter was a state leglegally drive it on the road. islative priority for Illinois He encouraged farmers to Farm Bureau. check their farm and home HB 6094, sponsored by insurance policies to ensure Sen. A. J. Wilhelmi (D-Joliet) they are covered for operatand Rep. Emily McAsey (Ding ATVs on a road. Lockport), allows farmers to During the last week of legally operate ATVs and May, Farm Bureau members UTVs on local roads and also made an extra effort to Illinois Department of Agriculture (IDOA) worker Elissa Marsh, left, to cross public roads with obtain passage of the ATV Friday helps 5-year-old Desiree Pflasterer of Lomax in Henderson them. The bill was effective bill, and Semlow thanked County color pictures in the new Farmer’s Little Helper area at the immediately. them for contacting their legIllinois State Fair. In the back, left, IDOA worker Brandon Smith “This legislation restores islators. quizzes Annely Yenn, 8, of Girard while her uncle, Dale Standefer of the ability farmers had to “That action helped ensure Florida, looks on. Children attending the fair learn about Illinois agriride ATVs on roads legally the issue was approved by the culture through hands-on activities provided by farm and commodities in time for harvest,” said General Assembly and put groups through Aug. 22. (Photo by Ken Kashian) Kevin Semlow, IFB director before the governor,” he said. FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau®on the web: www.ilfb.org

BY KAY SHIPMAN FarmWeek

FarmWeek Page 2 Monday, August 16, 2010

ENERGY

Quick Takes DURBIN PROGNOSIS GOOD — Medical experts offered a favorable outlook for U.S. Sen. Dick Durbin, a Springfield Democrat, after the Senate majority whip had a rare, though small, tumor removed from his stomach last week. Durbin, 65, underwent minimally invasive surgery at the University of Chicago Medical Center for removal of a gastrointestinal stromal tumor, a largely benign and generally curable growth that can go undetected for years and become malignant. The mass in Durbin’s stomach was spotted weeks ago, during a routine medical checkup in Washington, Durbin spokesman Joe Shoemaker reported. SAUSAGE FACILITY CLOSED — Bob Evans Farms announced last week that it was closing its sausage production facility in Galva, effective immediately. The company cited excess capacity and diminishing supply in the live sow market as reasons for the closure. “This was a very difficult decision,” said Mike Townsley, president of Bob Evans Food Products. “Our business model needs to adapt to these tough market conditions. We need to manage our assets to stay competitive long term.” The nearly 70 employees at the Galva facility will receive severance compensation. In addition, Bob Evans is offering opportunities for transfer within the company. Galva was one of the company’s five fresh sausage production facilities. Production from the Galva facility will be distributed among Bob Evans’ facilities in Xenia and Bidwell, Ohio; Hillsdale, Mich.; and Richardson, Texas. VIRTUAL VIEW OF FAIR — Long to see the Illinois State Fair Aug. 13-22, but not able to go? You can watch the action live on your computer. Twenty-one cameras are located around the fairgrounds and their images are linked to the Internet. Web cam sights include the buttercow, Farmer’s Little Helpers area, harness racing, the milk-a-cow booth, the Livestock Center, and harness racing. All the web cameras are available at {www.agr.state.il.us/isf/webcam.htm}. A special tram cam {http://isftramcam.camstreams.com} offers a live view from a tram tractor as it circles the fairgrounds.

(ISSN0197-6680) Vol. 38 No. 33

August 16, 2010

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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Mattoon plans to pull out

Revised FutureGen 2.0 more ‘shovel-ready’ choice? BY MARTIN ROSS FarmWeek

The federal government’s decision to go with a purportedly more “shovel-ready” FutureGen plan has spurred Coles County officials to pull out of the cutting-edge clean coal/carbon sequestration project. That leaves Tuscola — one of the U.S. Department of Energy’s original project runners-up — eyeing a possible second chance via a scaled-down plan that would retool an idled Meredosia power plant and build a cross-state pipeline to deliver waste carbon dioxide (CO2) for long-term storage under Eastern Illinois’ Mount Simon Sandstone formation. And it leaves American Coal Council CEO Janet Gellici concerned about the future of an initiative she views as “a great way for us to demonstrate low-emissions technologies” and prepare for near-certain greenhouse gas regulations. Under the revised plan, Mattoon would have retained a CO2 sequestration site and a new training center to staff clean coal projects, but a proposed new 275-megawatt, zero-emissions power plant was scrapped. Angela Griffin, CEO of the economic development agency Coles Together, told Springfield Democrat and Illinois FutureGen supporter Sen. Dick Durbin in a letter last week that “the citizens, neighbors near the site, business leaders, and community leaders in Coles County are nearly unanimous in the belief that the pursuit of FutureGen 2.0, as proposed, is not in our best interest.” Griffin argued the revised project “does not provide for the highest and best use of a Mattoon site that top scientists, researchers, and engineers have determined to be the best location in the nation for a clean coal facility and on-site carbon capture and sequestration research.”

She nonetheless emphasized support for the concept of carbon sequestration as “a safe and practical approach to removing CO2 from the atmosphere.” Gellici hopes the project can move rapidly forward, noting the near-certainty of future greenhouse gas restrictions on coalpowered generation. Revised project costs would be shared by the industry-based FutureGen Alliance and the U.S. Department of Energy (DOE), which received $1.1 billion in 2009 stimulus funding. Those funds must be allocated by Sept. 30, and both DOE and coal power interests are racing the clock. “I know (Energy Secretary Steven Chu) has been very intent on trying to get something off the ground as quickly as possible,” Gellici told FarmWeek. “I expect that, given the idled Ameren facility, this was seen as a more shovel-ready project — the intent of the stimulus funding. “I think there’s a sense of urgency; we can’t wait on these things. I think people think we’re not doing anything, we’re sitting around waiting for (climate) legislation. “But the recognition in the industry is that it definitely is going to have regulation at some point. We’re taking advantage of the time we have now to begin developing this technology. (FutureGen) is one example of that.” Gellici calls the planned sequestration/pipeline construction training center a “great concept,” arguing expertise in emerging clean coal technology is “something we’re really hurting for in this industry.” While FutureGen is seen as the crowning step in reducing coal’s carbon footprint, she noted coal gasification efforts at Duke Energy’s Edwardsport, Ind., plant and DOE funding for carbon retrofitting of other existing plants.

Tuscola eyes re-entry into FutureGen running Douglas County officials shelved hopes of hosting new cutting-edge coal technology in late 2008 when Mattoon beat out Tuscola for FutureGen site selection. Now that Mattoon has rejected a retooled “FutureGen 2.0,” Tuscola Economic Development Inc. Executive Director Brian Moody is again cautiously toeing the waters. Moody sees FutureGen 2.0 as “an entirely new project.” But as a finalist for the original project two years ago, Tuscola has undergone federal environmental impact and geological study and is, in Moody’s view, the “best qualified community” to take over the project under a tight U.S. Department of Energy (DOE) timeline (see accompanying story). Moody has contacted the Illinois Department of Commerce and Economic Opportunity Office of Coal Development and Springfield Democrat U.S. Sen. Dick Durbin for new project information. He stressed “we’re in no

way committing to the project at this point,” though “we are obviously interested.” A few other Illinois municipalities also have expressed interest in learning more about the new project. The prospect of losing a new power plant in favor of a carbon dioxide (CO2) pipeline delivery system discouraged Mattoon leaders. Tuscola’s original FutureGen plan included an 11-mile pipeline to its proposed sequestration site. “We no longer have any of the (originally designated) land under option or any agreements in place, so we’d be starting from scratch in that regard,” Moody told FarmWeek. “However, we have a good understanding of our local geology and the geology of Central Illinois, and understand that we’re an ideal location for carbon sequestration. “We’ve remained supportive of the technology: We understand that if EPA (the Environmental Protection Agency) were to promulgate new regs

on carbon emissions, a number of coal-fired power plants in our area would be under the gun for major upgrades or improvements. “Is there going to be a costeffective way to do that, or are these existing plants no longer economically viable if EPA changes the rules?” The Tuscola area boasts several natural gas pipelines, and Moody thus argues “we’re familiar with what it takes to build a pipeline.” He said he was encouraged by last week’s EPA-DOE Interagency Task Force on Carbon Capture and Storage report concluding the technology is “viable.” With added federal support, the task force believes the U.S. can meet the president’s goal of having five to 10 commercial demonstration projects online by 2016. “We definitely feel these kinds of projects have to go forward,” Moody said. “It’s good to see the administration support that.” — Martin Ross

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STATE

Quinn restores some ag ed funds State to get federal aid for education, Medicaid BY KAY SHIPMAN FarmWeek

Gov. Pat Quinn recently restored some of the agricultural education funding that had been eliminated from the Illinois State Board of Education (ISBE) budget. The governor revised the ISBE budget to include $1.947 million for the ag ed line item, which supports the Facilitating Coordination in Agricultural Education (FCAE) staff and development of teaching resources and ag-based curricula. T his still would be a 36 percent reduction from the previous year’s

$3.043 million in state funding. The allocation from the governor’s discretionary funds is subject to the Emergency Budget Act, so the money will not be released until enough tax revenues have been collected to pay all the current bills and programs. Ag educators anticipate delays in receiving state grant funds will continue for the foreseeable future. Due to the funding reduction, educators also expect cuts to existing grant programs and activities funded through the ag ed line item.

Youth compete in State Fair showmanship contest Fifty youth exhibitors competed for the title of Illinois Master Showman last week on the Illinois State Fairgrounds, Springfield. Illinois Farm Bureau and the RFD Radio Network coordinated the competition. The top overall honor was won by Jake Mohr, son of Brian and Jill Mohr of Carlock in McLean County. Second place overall went to Buddy Hass, son of Stephen

and Caryn Haas of Elburn in Kane County. Third place overall was won by Ethan Hanold, son of Pearley and Wreatha Hanold of Brighton in Jersey County. The contestants, who previously won their respective county’s contest, were judged on their skills in showing beef, sheep, and swine. They also were quizzed on their knowledge of animal husbandry and livestock production.

In addition to overall winners, a top showman was designated for each species. Jamie Bloomberg, daughter of Jim and Mary Bloomberg of Berwick in Warren County, was named the top beef showman. Lauren Honegger, daughter of Gregg and Michelle Honegger of Forrest in Livingston County, was named top swine showman. Overall winner Mohr was the top sheep showman.

CORN COMPARISON

State Rep. LaShawn Ford (D-Chicago), left, compares ears of sweet corn and field corn, while Knox County Farm Bureau member Jay West and his 8-year-old son, Tyler, look on. Ford, who was “adopted” by the Knox County Farm Bureau, and his family recently toured the Jay and Todd West grain and livestock farm, the Keith and Kevin Erickson hog operation, the Jason and Linda Main horse farm, and the Knox County Fair. The lawmaker said his experiences have made him more aware of agriculture’s importance in Illinois, the technology used in modern farming, and the challenges farmers face. Ford and his family were accompanied by several Knox County Farm Bureau board members and state Rep. Don Moffitt (R-Gilson). (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)

Illinois will be getting a cash infusion from the federal government to support both education and Medicaid, according to Illinois Statehouse News. The federal government will distribute about $10 billion through school districts nationwide to preserve jobs for educators. Illinois’ share is estimated to be $415 million. The state also is expecting to receive an estimated $550 million for a modifiede n h a n c e d Medicaid reimbursement rate. The aid announcement came just a week after Gov. Pat

Quinn announced $1.4 billion in cuts to several state agencies. Quinn had outlined a $215.7-million cut to the state’s Department of Healthcare and Family Services, which oversees the state’s Medicaid and public insurance programs. Quinn also outlined a $311million cut to the Illinois State Board of Education, a 4.2 percent reduction compared to the last budget year. The cuts include $146 million in student transportation services and $68.5 million in grants directed at improving reading.

Cows, U of I students reaching fair visitors The University of Illinois dairy cows and U of I Dairy Club members again are doing their part to promote the dairy industry and animal care. Their Milk-a-Cow booth at the Illinois State Fair’s Barn 25Q is open daily from 10 a.m. to 7 p.m. through Aug. 21. For the past 28 years, the cows and students have given the public an opportunity to milk a cow. The students also demonstrate milking, teach fairgoers about dairy production, and answer questions. “Many people have never milked a cow,” said Britney Cowan, a U of I senior in agricultural education and chairman of the Milk-aCow booth. “It’s a great way to educate people while showing them the great care and attention our cattle receive in the process.” For $1, visitors can milk a cow and receive a carton of milk sponsored by Prairie Farms Young Cooperators. The money raised supports Dairy Club student activities. “It’s an important fundraiser,” said Gene McCoy, U of I Dairy Club adviser. “But that’s not why we do it. It’s important that we educate the public about milk and other dairy commodities that are often taken for granted.”

FarmWeek Page 4 Monday, August 16, 2010

GOVERNMENT

Does Clean Water Act proposal affect constitutionality? BY MARTIN ROSS FarmWeek

As a farmer, attorney, and historian, George Tinkham has a distinct perspective on congressional clean water debate — and where it potentially collides with the U.S. Constitution. If Congress approves a change to the Clean Water Act that would extend federal purview beyond rivers and other “navigable” waters to virtually any U.S. water, the courts are a likely next stop, warned Tin-

kham, a Springfield lawyer and Sangamon County Farm Bureau Legislative Committee member. Under the bill, sponsored by House Transportation and Infrastructure Chairman Jim Oberstar (D-Wis.), federal agencies could regulate activities related to such things as ditches and grass waterways, and ponds. It would open the door to new Environmental Protection Agency (EPA) permit requirements. Oberstar’s measure would exempt “prior converted” farm-

land, but land must remain in production to qualify, limiting landowner development rights. American Farm Bureau Federation (AFBF) policy specialist Don Parrish reported efforts to defeat the bill are “pretty high on our (AFBF) radar” during the August recess. Congress’ original qualification for regulated waters was included largely to ensure the Clean Water Act would hold up under the Constitution’s Commerce Clause, which defines

Lawmakers challenge EPA authority As the U.S. Environmental Protection Agency (EPA) shapes plans to further regulate key pesticides, lawmakers on both sides of the aisle are working to limit EPA authority over states, communities, and producers. Ag groups last week hailed a proposal to overturn a federal court decision regarding National Pollutant Discharge Elimination System (NPDES) pesticide application permits. The measure is sponsored by Senate Ag Chairman Blanche Lincoln (D-Ark.) and ranking Republican Saxby Chambliss (R-Ga.). In 2009, the court ordered EPA to regulate pesticide spray nozzle discharges as possible “point sources” of pollution. EPA subsequently drafted permits for aquatic, forest, and mosquito-control chemicals. The Lincoln-Chambliss measure — and a House companion sponsored by Rep. Frank Lucas (R-Okla.) — would declare no permit is required for use of pesticides registered under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). While EPA’s initial permit requirements would not cover crop protection products, the agency has fielded 600 to 700 comments on its draft rule. American Farm Bureau Federation policy specialist Don Parrish noted “a really big divide” in com-

ments, indicating potential for EPA to expand final rules without congressional intervention. “Some believe in broad coverage; some believe, as we do and as this (Senate) legislation backs up, that if you comply with FIFRA, you shouldn’t have to comply with Clean Water Act permits,” Parrish told FarmWeek. The court’s mandate takes effect next April; EPA expects to have an NPDES permit in place by December. The Agricultural Retailers Association (ARA) has asked EPA to appeal to the court for more time for permit implementation. ARA argued “terrestrial” (crop) applicators should not be subject to permits due to advanced application technology, established runoff buffers, and federal exemptions for ag irrigation return flows and stormwater runoff. EPA is considering current pesticide requirements even as more Illinois communities report a growing number of positive tests for West Nile virus and southern Florida attempts to grapple with a Dengue Fever epidemic also linked to mosquitoes that breed in still waters. “There are repercussions to this,” Parrish stressed. “People kind of forget why we spray, and why we’ve sprayed in the past. Yellow fever, Dengue fever, West Nile — there are a number of concerns out there.” — Martin Ross

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lawmakers’ authority over interstate and export trade, Tinkham stressed. As it is, that link between commerce and environmental law is “tenuous at best,” he told FarmWeek. Without it, regulators are subject to a constitutional challenge, possibly even at the Supreme Court level, Tinkham said. “When they remove the navigable waters provision, and (the law) just says ‘waters of the U.S.’ — in other words, any water we feel like — then they don’t have the protection of the Commerce Clause.. “Once you get rid of that, the 10th Amendment of the Constitution kicks in and says all powers not specifically granted to the federal government are reserved for the people. Without the Commerce Clause justification, the Clean Water Act then becomes unconstitutional.” Parrish said the waters issue is “married up” with EPA’s move toward more stringent regulation of selected pesticides (see accompanying story). EPA’s pesticide permit proposal also focuses on “conveyances” — natural or manmade waterways that could transport pollutants into more open waters. And like with the pesticide plan, expanded federal water

authority would impact a wide range of community and private activities, from businesses that generate storm runoff to golf courses and key ag practices, Tinkham said. Should Congress significantly expand jurisdiction, “it’s going to be very difficult for farmers and ranchers to operate and avoid (regulated) areas, even in terrestrial (crop) applications,” Parrish said.

Sangamon County producer and attorney George Tinkham, right, addresses current ag policy concerns with Peoria Republican U.S. Rep. Aaron Schock following a machine shed meeting at Illinois Farm Bureau board member Dale H a d d e n ’s J a c k s o n v i l l e f a r m . (Photo by Martin Ross)

New website a resource for pesticide stewardship The Center for Integrated Pest Management recently launched a new pesticide environmental stewardship website {http://pesticidestewardship.org}. The site is designed for anyone who applies, sells, stores, or disposes of pesticides; provides advice or training on pesticide use; or is involved in pesticide stewardship or regulation. The goal is to cover the basic principles that apply regardless of individuals’ roles, where they live, or the pests they’re trying to control, according to Wayne Buhler of North Carolina State University and the pesticide stewardship national coordinator. The website covers a variety of stewardship topics, ranging from pesticide storage, handling, FarmWeekNow.com and disposal to tips on avoiding Learn more about the new drift, runoff, and leaching durp e s t i c i d e e n v i r o n m e n t a l ing and after the application. stewardship website at Currently, a pesticide resisFarmWeekNow.com. tance management topic is under development. Future plans include educational quizzes about stewardship concepts and selfassessment tools to evaluate personal stewardship practices. The site’s top 10 stewardship tips are: • Read the label before buying the pesticide. • Buy only the amount of pesticide needed for one season. • As a general rule, keep the temperature inside the storage area no colder than 40 degrees Fahrenheit (F) or hotter than 100 F. • Calibrate equipment carefully to apply product at labeled rates. • Be aware of the current weather conditions and those likely to occur in the future to prevent drift. • Locate the mixing and loading site away from wells, streams, and lakes. • Never leave a tank being filled unattended, and pay constant attention during filling to prevent overfilling and spilling. • After a container is emptied, allow it to drain into the spray tank for 10 seconds after it begins to drip. • Remember that exceeding the label application rate is a violation of the law. • Follow the label each time you mix and use a pesticide, and follow the label when storing or disposing of a pesticide.

FarmWeek Page 5 Monday, August 16, 2010

GOVERNMENT

Biofuels credits, mandates on shaky ground? BY MARTIN ROSS FarmWeek

Given the narrow focus of current energy legislation, U.S. Rep. Aaron Schock sees extension of ethanol and biodiesel tax breaks being included in a comprehensive tax bill. The biodiesel tax credit expired Jan. 1, resulting in shutdowns and layoffs throughout the fledgling industry. While Schock, a Peoria Republican, is co-sponsoring a measure to revive the biodiesel credit, he questioned whether the agfriendly votes are there to restore it, other than through a tax bill. At the same time, Sen. James Inhofe (R-Okla.) has proposed allowing states to disregard corn ethanol requirements under the federal renewable fuels

standard (RFS2). RFS2 directs 36 billion gallons of annual biofuels use by 2022, including 15 billion gallons of starch-based ethanol, but Inhofe maintained a lack of “ethanol-free” gasoline is one of his Oklahoma constituents’ “top concerns.” Though Inhofe has asked for a Senate Environment Committee hearing on the bill, Renewable Fuels Association spokesman Matt Hartwig gave the proposal little chance of advancing, calling it a “gratuitous effort” to block corn ethanol access. Inhofe’s bill would not affect RFS2 cellulosic ethanol or advanced biofuels mandates, but the U.S. Environmental Protection Agency already has pared back on short-term targets for cellulosic ethanol use. Inhofe’s plan would raise gasoline prices and “force

America to use more imported oil,” Hartwig maintained. Further, Iowa State University economist Bruce Babcock recently argued RFS2 mandates are crucial to continued ethanol development, especially if the

ethanol credit were eliminated. “The current ethanol mandates are the safest presumption to use in analyzing the impact of the (ethanol credit), because they are indeed the law,” Illinois Farm Bureau economist Mike

Doherty concurred. “However, the RFS2 mandates spell out ethanol production levels from some very specific sources over the next 12 years. A lot could change over that period of time.”

FSA COMMUNITY HARVEST

Payment limits revisited

Schock: Budget debate key farm bill challenge

With ag spending in Congress’ budgetary sights, producers must drive home the importance of farming and food production to all Americans — and their lawmakers, according to U.S. Rep. Aaron Schock. For agriculture in particular, much is riding on November’s mid-term elections, the Peoria Republican told FarmWeek following a machine shed policy discussion at the Jacksonville farm of Illinois Farm Bureau Director Dale Hadden. Schock noted the “slim” chance that climate/”cap-and-trade” legislation could re-emerge in the lame duck session or next year, and cited several tax extension/reform measures currently in congressional limbo. Looming on the 2011 horizon is anticipated “budget reconciliation” debate aimed at identifying across-the-board, potentially competitive program spending cuts. Ag budget anxieties surfaced last week as Sens. Russ Feingold (D-Wis.) and Charles Grassley (R-Iowa) touted proposals to limit annual per-farm commodity payments to $250,000 and close purported program “loopholes.” They estimate the plan would save $1 billion-plus over 10 years, money that could be used to help pay down a nearly $1.17 trillion federal deficit. The measure would cap annual direct payments at $40,000, countercyclical payments at $60,000, and loan deficiency payments and marketing loan gains at $150,000 (including gains on generic certificates and forfeited commodities). “Everybody’s looking to cut,” Schock stressed. “We saw what they did with crop insurance funding: They took $6 billion out of it, $4 billion for deficit reduction, $2 billion for (conservation). “Everything’s on the table right now. And with only 61 members of Congress with ag-dominant districts, it’s tough to look out for ag. We have to keep telling the story of how agriculture’s important to every district. No matter how urban, no matter how high-density population they might be, they all rely on the ag community as their food source.” Under the Feingold-Grassley bill, payment limits would depend on a farmer’s participation in the average crop revenue election program, which requires a 20 percent reduction in direct payments, reduced loan gains, and no conventional countercyclical payments. All payments would be tracked through entities and partnerships directly to the ultimate beneficiary and would count toward individual limits whether received directly or through another entity. The bill also would tighten USDA criteria for “actively engaged” program recipients, requiring that landlords who share-rent acres receive payments equivalent to the risk they have in the operation. — Martin Ross

Illinois Farm Service Agency (FSA) staff harvested more than 700 pounds of vegetables from their community garden in Springfield. FSA employees and their local partners are growing 54 gardens around Illinois and donating fresh vegetables to local food pantries and soup kitchens. More than 3,000 pounds of produce have been donated this summer and another 1,000 pounds is expected by late August. In Illinois, FSA planted nearly twice as many gardens as any other state. (Photo by Mary Kirby, Illinois FSA)

FarmWeek Page 6 Monday, August 16, 2010

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Generally good growing conditions again last week. We had 0.4 of an inch of rain last Sunday night (Aug. 8), and there was rain forecast Friday and Saturday. It has been very good for corn and soybeans and very uncomfortable for people because of high heat indexes. We have had some sudden death syndrome in some soybean fields. Hopefully, it won’t spread. Almost all of the corn is denting and everyone is getting ready for an early start to our harvest season. Pete Tekampe, Grayslake, Lake County: Got a little over 1 inch of rain for the week with very hot and humid temperatures. Corn is looking good and starting to dent. Most is a dark green color. Beans are progressing well and also have the dark green color. Early beans are much better than the later-planted ones. Should be an early harvest. Leroy Getz, Savanna, Carroll County: Rain on Sunday and Monday (Aug. 8-9) of 3 inches brought some rivers out of their banks again. We definitely do not need anymore rain in this area. Heat stress on livestock has been high. Grass and weeds are growing faster than you can mow. Some rained on hay got baled late in the week. Corn and beans are racing toward the finish line. Ron Frieders, Waterman, DeKalb County: We had another week of extremely high temperatures and humidity. This Florida weather may be great for going to the beach, but not for growing corn and soybeans. Insect pressure is phenomenal, and disease is really showing up, especially in soybeans. What we perceived as a bumper crop is dwindling rapidly. The weather seems to be in a pattern of extremes, and it’s the only thing you can’t control. Larry Hummel, Dixon, Lee County: I don’t think I would be too surprised if few cornfields aren’t opened up before the end of August. A neighbor down the road is always the first to start, and I noticed that the husks on the first corn he planted are already drying up. I’m a little disappointed in the yield checks I’ve done so far on the corn. I’m not sure what could have changed to make conditions any better for this year’s crop, but kernel counts are about average. I was thinking that this year would set some new records for us. Except for sudden death syndrome showing up in a few fields, soybeans have had a pretty good year. There were a lot of no-shows this year when it came to soybean pests and diseases. Ken Reinhardt, Seaton, Mercer County: We had some nice showers early last week but there was the potential for heavy rain and storms Friday night. Sudden death is showing up in some early-planted soybeans. Otherwise, they look to have good yield potential. Many diseases are hitting corn. Goss’s Wilt is hitting some corn hard. Weed pressure is becoming evident in many areas. Corn yields will be all over the chart. Mark Kerber, Chatsworth, Livingston County: The good news is that we finally received rain — 1 to 3 inches, depending on where you were located. We received 1.5 inches, which will really help the crops. Corn is drying fast with this heat. Soybeans are still green and now will have a chance to fill the pods. Another rain would be nice as this last one dried up fast with cracks in the ground big enough to lose a wrench in. Farmers are getting ready for fall. It’s a little early to mow roads for the last time. Agronomy meetings and field demonstrations are starting. August always seems to be busy, especially with an early harvest coming. Government reports put the national average yield for corn at 165 bushels per acre and soybeans at 44. Carryout is at a pretty small number. Any increased demand or a glitch in next year’s growing season could see market prices rise.

Ron Moore, Roseville, Warren County: We received 1 inch of rain last Tuesday, along with some hail that did some crop damage. It is too soon to tell how much. We will have the insurance adjusters take a look this week. The ears on the corn are starting to turn brown. It won’t be long before the beans will start to turn also. It has been very hot, and some of the yield may be trimmed back some. We will start to bring cattle home from pastures in two weeks before the grass all runs out. Ron Haase, Gilman, Iroquois County: Rain finally came our way on Tuesday. Where we farm, there was a range of 1.6 to 2.4 inches. Other farms not very far away were not as fortunate. Some cornfields, or portions of cornfields, were not helped by the rain as the corn plants already had died prematurely due to the hot and dry weather. Most cornfields are in the dent stage with just a few still in the dough stage. The milk line on the furthest-developed corn is 50 percent of the way down the kernel. At that point, the kernel has 40 percent moisture with about 88 percent of the final dry matter being stored in the kernel. Potential yield loss will vary a lot field by field and within each field. Our area will not be helping Illinois produce the record corn yield USDA is predicting. Most soybean fields are in the R5 growth stage with a few close to R6. Grain fill still has a long way to go for soybean fields in this area. More rain will be needed with above normal temperatures. The local closing prices for Aug. 12 were: nearby corn, $3.74; new-crop corn, $3.79; nearby soybeans, $10.62; new-crop soybeans, $9.97. Brian Schaumburg, Chenoa, McLean County: It’s a story of “haves” and “have nots” as spotty thunderstorms dropped as little as 0.2 of an inch of rain to as much as 4 inches last week. Most are in the “have not” category and needing more to fill out soybeans. Our Heartland Bank yield tour showed a 12 percent reduction from last year. Corn on corn showed as much as 22 percent lower yields than corn-soybean rotations in the heat- and drought-stressed areas. High nighttime temps, disease, and nitrogen uptake affected kernel size and ear length. Corn, $3.76, fall, $3.80; soybeans, $10.54, fall, $9.83; wheat, $6.14. Wilfred Dittmer, Quincy, Adams County: The weather people say another day of this sauna and then it is supposed to cool off some. I’m sure everyone, crops also, would appreciate some cooler temps. As for moisture for the week, we had virtually none except a few drops that barely wet the sidewalks on Wednesday morning. Soybeans are looking fairly good and podding, but a lot of corn is a different story after seeing some from the windshield across part of the state this past week. The combine windshield will probably bring some surprises also. There are some escape weeds poking up above the beans in some fields. Have a safe week in this heat. Tom Ritter, Blue Mound, Macon County: This was our second week of high temperatures, high humidity, and little to no rainfall. There have been a few scattered showers come through, but usually they don’t do more than wet the roads. Grass has gone dormant and both corn and beans look like they may be losing a little bit of their top-end yield. Soybeans definitely will need a good rain within the next seven to 10 days to salvage what was on the way to being an excellent crop. Corn is starting to see major dry down. Most varieties have dented and some even is starting to black layer. Most farmers are talking harvest will begin around the first of September, but there will be some corn picked in August. Farmers are busy making final preparations on storage and equipment, just to be ready in case the crop comes on quicker than anticipated. Hopefully, a rain will improve yield and slow the natural maturing process.

Carrie Winkelmann, Menard County: The heat and humidity were oppressive last week. The 0.43 of an inch of rain received on Tuesday night cooled it off momentarily. The milk line on the corn kernel is halfway down the kernel. Beans are doing well despite the heat. Our pumpkin crop is doing well, except for the giant pumpkin plants that never did recover from the spring hail. I hear from farmers in Mason County that the pie pumpkin farmers are having a rough time again this year, and there looks to be another piefilling shortage. Todd Easton, Charleston, Coles County: It was very hot across the area. Weather forecasters promise a cool-down this week preceded by some rain, and producers are hoping they are right. The extreme heat is pushing corn crop development forward very quickly and potentially causing a small reduction in final yield. Sample ears pulled from fields are testing from 30 percent to 40 percent moisture on my latest-planted field with late-maturity corn. Late-season diseases have shown up in fields more than normal this year. Grey Leaf Spot and Diplodia ear rot have several producers worried about their final yield at harvest. Soybeans are still looking good and have good pod counts, but those pods have just began to fill, and without some moisture soon, the yields may take a big hit. The area, unfortunately, had a vivid reminder that the greatest profession in the world is also one of the most dangerous. A well-known and liked local producer was tragically pinned by a piece of machinery he was working on and will be missed by many. It just cannot be said often enough or loud enough: SAFETY FIRST, EVERYDAY! Doug Uphoff, Shelbyville, Shelby County: I’m on family vacation before the kids go back to college and school, reporting to you from New York’s Times Square where it is a cool 75 degrees. It’s the kind of weather we have been looking for in the Central Illinois Corn Belt. It was still hot there when we left. Crops were maturing quite rapidly and we need some of this cool, damp New York weather down there. Have a safe and prosperous week. David Schaal, St. Peter, Fayette County: We had sweltering heat last week with heat indexes above 100 degrees every day and no rainfall. These weather conditions have rapidly sent the corn crop into a dying, dry-down mode. For the soybean crop, the verdict is still out. I can’t help but think that the heat will start shaving bushels off the yield, especially if precipitation doesn’t come in the next few days. Soybeans have good height, but they could be all hay and no crop. Grain prices reacted favorably to the crop report last week. Soybeans, $10.36, new crop, $10.05; corn, $3.73, new, $3.78; January wheat, $6.83. Everyone has been trying to stay cool, along with some roadside and waterway mowing and doing some preparing for the upcoming harvest. Bob Biehl, Belleville, St. Clair County: We received a nice inch of rain Thursday afternoon. It came out of nowhere. Some parts of the county received very light amounts of rainfall. Just three or four miles north of us in Belleville, it rained only 0.3 of an inch. So, in many cases it remains very dry. The beans especially could use some rain. Corn continues to dry down, but this rain should slow it a little bit. Podding beans have been hurt some by the hot weather, but hopefully the moisture and cooler temps coming will allow them to compensate some. Winds during the storm pushed some of the beans down, but I think they will come back. USDA reports show increased corn and bean bushels, but looks like the traders have a hard time believing it. I know most of the farmers don’t believe many of the reports coming out.

Page 7 Monday, August 16, 2010 FarmWeek

CROPWATCHERS Kevin Raber, Browns, Wabash County: Wabash County had its yield tour Thursday, and the average yield estimate was at 159 bushels an acre, up from last year slightly. But that didn’t allow for the acres of corn there lost to the Wabash River flooding. The soybeans could use a good soaking, and everything and everybody needs a break from the excessive heat. Ted Kuebrich, Jerseyville, Jersey County: Temperatures have been in the high 90s to low 100s the last couple of weeks. The hot, dry weather is causing the corn to start early dry-down. The lower leaves on most of the corn plants are drying up and turning brown. The hot weather is having a negative effect on the beans also. The top leaves are starting to shrivel. Driving along some bean fields, you can see spots where the leaves are brown, which may be caused by sudden death. The corn that had been standing in water this summer is affected the most now by the hot temperatures. Prices at Jersey County Grain, Hardin: August corn, $3.85, October corn, $3.88, January 2011 corn, $4.15; August 2010 beans, $10.45, October 2010 beans, $10.13, January 2011 beans, $10.48; August wheat, $6.22.

Rick Corners, Centralia, Jefferson County: Please hand me the sickness bag. Thursday afternoon we had flash flood warnings in all directions, but here at the old ranchero, not even a sprinkle. Corn harvest is going to be very early. Bean harvest is going to be very nothing. Dean Shields, Murphysboro, Jackson County: Another long, hot week. We did get a little reprieve Thursday night in that some of the areas got a litte rain. How much, I don’t really know. At my house, I had only 0.1 of an inch. The corn crop is to the point that in the next week or two, there will be some starting to pick and shell. The bean crop continues to grow fairly well. This past week, a lot of beans on the sandy ridges started to burn and wilt. We need a rain real badly. The milo is heading out. It always seems as though it loves hot weather. On wheat, there is still talk of how much and if you are going to plant this year. Last year, we had such poor chances for planting wheat that not much got planted in our area, so it might all depend on the fall and how wet or dry it is. We are trying to stay cool and get stuff ready for harvest.

Ken Taake, Ullin, Pulaski County: Hot, hot, hot. That pretty much describes the weather here in Pulaski County. I guess you could add dry, dry, dry. We did have a few hit-and-miss showers Thursday afternoon, but we were mostly in the miss category. We received only about 0.1 of an inch of rain. I heard some areas had more than 2 inches, while others had none. The corn is pretty much finished. It’s turning yellow. I’ve heard of some hand-shelled samples running less than 30 percent moisture. The soybeans are really struggling. It looks like it’s going to be a difficult harvest here in deep Southern Illinois. Please try to stay cool during this hot summer weather. Dan Meinhart, Montrose, Jasper County: Another week of very hot, humid weather. Except for a few isolated areas, there has been no rain for two weeks or longer. It is taking its toll on the shallow-rooted corn and beans. The corn ears are tipping back. Some fungicide and insecticide were applied on the lateplanted corn. Several people are chopping silage. Other activities include hauling grain and mowing road ditches and waterways.

Reports received Friday morning. Expanded crop information available at FarmWeekNow.com

USDA predicts record-high corn, soybean production BY DANIEL GRANT FarmWeek

Crop conditions apparently are good enough nationwide to make up for problem areas that are too wet or too dry.

FarmWeekNow.com For more on USDA’s crop production repor t, go to FarmWeekNow.com.

USDA last week forecast record-high production this season for corn (13.4 billion bushels) and soybeans (3.43 billion bushels). The forecast, based on crop conditions as of Aug. 1, esti-

mated national average yields of 165 bushels per acre for corn and 44 bushels per acre for beans. In Illinois, yields were projected to average 180 bushels per acre for corn, up six bushels from last year, and 49 bushels per acre for beans, up three bushels from a year ago. “It (the crop production forecast) was slightly above the average (trade) guess,” said Bill Biedermann, senior vice president of Allendale Inc. in McHenry. “A lot of traders are saying the crops could get smaller from here

Wheat forum Aug. 25 in Highland An Illinois wheat forum will be held Wednesday, Aug. 25, to assist wheat producers with fall planting decisions. The forum will be at the Knights of Columbus Hall, located on the north edge of Highland on Route 143. Registration will begin at 8 a.m. on the day of the event. The program will run until 3:15 p.m. Certified Crop Adviser continuing education credits will be available for those in attendance. The program will feature Steve Ebelhar, University of Illinois agronomist, who will discuss what to consider before planting prior to the fly-free date; Fred Kolb, U of I plant breeder, who will discuss managing head scab; Emerson Nafziger, U of I Extension agronomist, who will report results of the 2010 U of I wheat variety performance trials; Bob Dewey, Country Financial crop insurance coordinator, who will give an insurance update; and Rob Huston, manager of AgriVisor, who will discuss factors that affect wheat prices. A panel discussion on the controversy over deoxynivalenol (DON) testing will be conducted by Carl Schwinke of Siemer Milling in Teutopolis, Eric Stone of the Illinois Department of Agriculture, and Mark Peterson with the Food and Drug Administration in Springfield. Registration will be on site, and the fee, which includes lunch, is $15 for members of the Illinois Wheat Association (IWA) and $25 for non-members. For more information, contact Diane Handley, IWA executive secretary, at 309-557-3662 or by e-mail at dhandley@ilfb.org.

on out due to nitrogen loss and heat.” A wave of extreme heat that engulfed much of the Corn Belt last week could trim some crop potential, particularly for soybeans during the critical pod setting and fill stages. But, even if USDA trims yield potential by as much as two bushels per acre in future reports, supplies should remain adequate for corn and beans to meet demand, according to Dale Durchholz, AgriVisor market analyst. Meanwhile, much of the loss of wheat production due

to a drought in Russia and the Ukraine, which sparked recent price rallies, was accounted for in the latest report as USDA lowered world wheat production by 555 million bushels. “The big thing to worry about is where will we get new ammunition to carry the market upward,” Durchholz said. “The crude oil market has been showing weakness, which makes me wonder if demand for foodstuffs will hold up as well as some people think.” USDA last week boosted

export projections by 100 million bushels for corn and 65 million bushels for soybeans. It subsequently increased season average farm price estimates by 50 cents for wheat ($4.70 to $5.50 per bushel), 40 cents for beans ($8.50 to $10), and a nickel for corn ($3.50 to $4.10). Ending stocks as of Aug. 1 totaled 360 million bushels for soybeans, unchanged from July, and 1.3 billion bushels for corn, down 61 million bushels. In fact, the current ending stocks figure for corn is the lowest total in four years.

Soybean growers elect leaders in Illinois Ron Moore, a farmer from Roseville, was re-elected chairman of the Illinois Soybean Association (ISA) during the association’s recent board meeting in East Peoria. “I have three areas that I want to see through — the CEO transition as Lyle Roberts retires in October and Craig Ratajczyk takes over; investing our farmers’ checkoff dollars in areas that will improve their bottom line; and educating our decision-makers and farmers on issues that affect soybean farmer profitability, such as biodiesel and upcoming 2012

farm bill negotiations. “I also am excited about our Yield Challenge program, which will help farmers increase the quantity and quality of the soybean crop in Illinois.” Moore currently serves as an American Soybean Association (ASA) director and vice chairman of the National Sustainable Agriculture Standards Committee. Matt Hughes of Shirley was elected ISA vice chairman and previously served on the board as assistant secretary-treasurer. Bill Wykes, Plano, takes over as the new

secretary, having previously served as treasurer. Doug Winter, Mill Shoals, was elected treasurer after serving as the previous year’s secretary. Dean Campbell of Coulterville joins the officer team as assistant secretarytreasurer. New ISA directors are Rob Shaffer of El Paso, who will represent District 6 and replace Jason Lay, and Bill Raben of Ridgway, who will represent District 18 and replace Tim Scates. In District 4, Wykes was re-elected to another term on the board.

Farm Talk meetings slated around state Illinois Farm Bureau President Philip Nelson and IFB Vice President Rich Guebert Jr. will conduct five regional Farm Talk meetings later this year throughout the state. Dates, times, and locations are: • Wednesday, 5:30 p.m., Sangamon County, Sangamon County Farm Bureau, 2631 Beechler Court, Springfield. • Monday, Aug. 30, 11 a.m., Effingham Coun-

ty, Joe Thoele farm, 13550 N. 2100 St., Teutopolis; 5:30 p.m., Williamson County, John A. Logan College, 700 Logan College Rd., Carterville. • Wednesday, Sept. 1, 11 a.m., Warren County, American Legion Post 136, 1110 N. 11th St., Monmouth; 5:30 p.m., LaSalle County, Pitstick Pavilion, 3401 N. State Rt. 23, Ottawa. You may register by contacting your county Farm Bureau or the IFB president’s office at 1-800-676-3217.

FarmWeek Page 8 Monday, August 16, 2010

FB IN ACTION

County FBs help ‘adopted’ legislators with back-to-school, family health fair BY DAVE MEEKER

State Rep. Cynthia Soto (D-Chicago), an “adopted� legislator, shows her model tractor/Friend of Agriculture award to county Farm Bureau representatives, left to right, Roger Hardy of the Cass-Morgan Farm Bureau; Sam DeNeal, Phil Richerson, and Jim Haney, all with Saline County Farm Bureau; and Tim Stock, manager of the Macon County Farm Bureau. Soto was adopted by Macon County Farm Bureau through Illinois Farm Bureau’s Adopt-a-Legislator program. (Photo by Christina Nourie, IFB northeast legislative coordinator)

Representatives of five county Farm Bureaus recently participated in a back-toschool and family health fair sponsored by their Chicagoarea “adopted� legislators, state Sen. William Delgado (D-Chicago) and Reps. Cynthia Soto (D-Chicago) and Luis Arroyo (D-Chicago). The three lawmakers also were presented with Friends

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of Agriculture awards. Leaders and staff of CassMorgan, Cook, Gallatin, Macon, and Saline County Farm Bureaus were joined by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator at the recent event in Chicago’s Mozart Park. More than 6,000 people attended. Families first completed a form and gathered information before they received backpacks filled with school supplies. The county Farm Bureaus contributed many ag-related educational items, such as coloring books, Ag Mags, and pencils. Farm Bureau participants included: Nourie; Roger and Linda Hardy of Cass-Morgan Farm Bureau; Macon County Farm Bureau manager Tim Stock; Saline-Gallatin County Farm Bureau manager Dave Meeker; Bona Heinsohn, Cook County Farm Bureau director of public policy; and Phil Richerson, Jim Haney, and Sam DeNeal, all Saline County Farm Bureau members. Dave Meeker is the manager of Saline and Gallatin County Farm Bureaus. His e-mail address is salcofb@clearwave.com.

Orr Field Day to be Wednesday The University of Illinois Orr Beef Research Center near Perry in Pike County will hold its annual field day starting at 4 p.m. Wednesday. Presentations and the meal will be held in classrooms at the John Wood Community College Ag Center located a mile north of the center. The field day will highlight the Orr Beef Research Center’s research and demonstration programs as well as a number of current topics relevant to the beef cattle industry. Tours of the Orr Beef Center calving barn, feedlot, and research facilities also will be conducted. A complimentary evening meal will be served to all who attended the presentations. Pre-registration is not required, and there is no fee to attend. For information, contact Nathan Post at 217-236-4961.

FarmWeek Page 9 Monday, August 16, 2010

FROM THE COUNTIES

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UREAU — An informational meeting on a 14-day, 13-night trip to Alaska will be at 7 p.m. Wednesday at the Farm Bureau office. The trip will be July 25 to Aug. 7, 2011. Call the Farm Bureau office at 815-875-6468 for reservations or more information. • Farm Bureau will sponsor a task force planning meeting at 6 p.m. Thursday at the Wine Cellar. There are four task forces — education, member relations, farm business, and government and policy — in which members may choose to be involved. Call the Farm Bureau office at 815-875-6468 for more information. ASS-MORGAN — The annual meeting will be at 6 p.m. Wednesday at the Morgan County Extension Building, Jacksonville. Call the Farm Bureau office for more information. HAMPAIGN — Farm Bureau will sponsor a biomass seminar from 7:30 to 11:30 a.m. Friday at the Farm Bureau auditorium. Topics will include the use of cobs, stalks, wood chips, miscanthus, and their potential markets. Cost is $10, which includes breakfast. Call the Farm Bureau office at 217-352-5235 or visit the website at {www.ccfarmbureau.com} for more information. • Farm Bureau will sponsor a legislative reception from 4:30 to 6:30 p.m. Thursday, Aug. 26, at the Farm Bureau office. State elected officials, county board members, and Farm Bureau’s adopted legislator have been invited. Friend of Agriculture awards will be presented. Call the Farm Bureau office for more information. HRISTIAN — Farm Bureau will sponsor an informational meeting for the Taylorville Energy Center and Decatur Sanitary District Wastewater pipeline at 7 p.m. Wednesday at the Stonington American Legion. Representatives will answer questions about the pipeline and how it will affect landowners and tenants. • Farm Bureau, the University of Illinois Extension and the Christian County Soil and Water Conservation District will sponsor a pond management workshop at 5:30 p.m. Thursday, Aug. 26, at the Lawrence Grant farm, Owaneco. Call one of the sponsors or e-mail ccfb@ctitech.com for reservations or more information. • The annual Farmers Share luncheon will be from 11 a.m. to 1 p.m. Saturday, Aug. 28, on the Christian

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County Courthouse lawn, Taylorville. The event will be in conjunction with the Taylorville Farmers’ Market on the Square. Members are encouraged to volunteer. Tickets are available for 25 cents each with a limit of 10 per person. Call the Farm Bureau office at 217-824-2940 or e-mail ccfb@ctitech.com to volunteer. OOK — The Member Relations Team will sponsor a shred day from 10 a.m. to noon Saturday, Sept. 11, at the Rolling Meadows Country Financial building, 4190 W. Euclid Ave., Rolling Meadows. Bring up to three banker’s boxes of items to be shredded. Call the Farm Bureau office at 708-354-3276 for reservations or more information. • The Commodities/Marketing Team will sponsor a seminar on leasing farmland at 6:30 p.m. Wednesday, Sept. 15, at the Farm Bureau office. The seminar is free for members and $15 for non-members. Call the Farm Bureau office at 708-354-3276 for reservations or more information. • Farm Bureau’s annual Family Celebration picnic will be from 1 to 4 p.m. Saturday, Sept. 25, at Goebbert’s Farm and Garden Center, Barrington. Cost is $10 for adults and $5 for children. Call the Farm Bureau office at 708354-3276 for tickets or more information. ANCOCK — Farm Bureau, West Central FS, Illinois Soybean Association, and Illinois Corn Growers Association will sponsor the annual biodiesel and ethanol promotion from 10 a.m. to 1 p.m. Friday at the Fuel 24 Station, Carthage. A hot dog lunch will be served. Call the Farm Bureau office for more information. • The Hancock County Emergency Medical Services personnel and radio personality Max Armstrong will present a Farm Safety Awareness Day from 1 to 6 p.m. Saturday at the Mike Sullivan riding arena. The arena is located at the junction of Highway 336 and Country Road 650 North. Topics will include anhydrous ammonia spills, farm electrical hazards, and grain bin safety. EORIA — The Grassroots picnic will be at 6 p.m. Tuesday at the Farm Bureau Park. Raber’s will cater a pork loin meal. Candidates on the Nov. 2 ballot have been invited to attend. Call the Farm Bureau office at 686-7070 by Thursday for reservations or more information. • The photo contest deadline is Sept. 1. Members may

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submit photos in three categories. Cash prizes will be awarded, plus a Best of Show award will be given. Call the Farm Bureau office for more information. IATT — The Young Ag Leaders will sponsor a grain elevator traffic pattern instructional meeting this week. Farmers are asked to bring in their hired help to learn the traffic patterns at the Piatt County grain elevators. • The Women’s Committee will sponsor a watermelon eating contest at 3:30 p.m. Thursday at the Monticello’s Farmers’ Market. Call the Farm Bureau office at 7622128 to register or for more information. • Farm Bureau will sponsor a transportation seminar at 8 a.m. Thursday, Aug. 26, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau transportation specialist, will be the speaker. Call the Farm Bureau office for reservations or more information. ANGAMON — An open house from 6 to 8 p.m. Tuesday, Aug. 31, will be at the new Farm Bureau office, 2631 Beechler Court, Springfield. Members of the general assembly and Con-

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gress representing Sangamon County have been invited to attend. Call the Farm Bureau office at 753-5200 for more information. TARK — An informational meeting on a 14day, 13-night trip to Alaska will be at 7 p.m. Wednesday at the Bureau County Farm Bureau office, Princeton. The trip will be July 25 to Aug. 7, 2011. • The Young Farmers will sponsor a blood drive from noon to 6 p.m. Wednesday at the Toulon Congregational Church. Call 800-GIVELIFE (448-3543) for an appointment. Walk-ins are welcome. Identification is required to donate. ARREN-HENDERSON — A ladies seminar — “Marketing Made Easyâ€? — will be presented twice — from 1 to 4 p.m. and from 6 to 9 p.m. Monday, Aug. 30, at the Farm Bureau office. Beth Collins will be the speaker. Call the Farm Bureau office at 309734-9401 for reservations or more information. AYNE — The annual Wayne County Tractor Drive will be Monday, Sept. 6, beginning and ending

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at the Wayne County Fairgrounds. Lunch and public viewing will be at Shreve’s Pumpkin Patch, Barnhill. Drivers may contact the Farm Bureau office at 618-842-3342 or download a registration form at www.waynecfb.com.} HITESIDE — Farm Bureau will sponsor a bus trip Saturday, Sept. 4, to Chicago to see the Chicago Cubs vs. New York Mets game. The bus will leave Wiersema Charter at 7:30 a.m. and stop at 7:45 a.m. at the Community Center, Rock Falls. Tickets are $65. Call the Farm Bureau office at 815-772-2165 or e-mail wcfb@frontier.net for reservations or more information. OODFORD — The annual appreciation dinner will be from 4 to 6:30 p.m. Tuesday, Aug. 24, at the Farm Bureau Park. Call the Farm Bureau office at 4672347 for reservations or more information.

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FarmWeek Page 10 Monday, August 16, 2010

PROFITABILITY

Now is the time to get ready for harvest BY RANDY HOLTHAUS

Now is the time to focus on grain systems readiness to ensure a smooth transition into harvest. Safety is the first priority. Always lock out the power to any equipment you will be inspecting or working on. Make sure every shield is in place and working properly to protect you, your family, your workers, and your service providers.

Take a walk around your facility and observe every moving part and electrical connection. If you see anything that does not look brand new, fix it now so it doesn’t cause a catastrophe when you are caught up in the rush of harvest. Inspect empty bins for evidence of leaks, corrosion, insects, and rodents. Wire brush or sand off any red rust and recoat with soy zinc primer or aerosol coldgalvanizing paint. Clean out old grain, fines, chaff, and dirt from bins and all equipment, including under false floors if there is a buildup. Seal any evident air and water leaks. Seal con-

crete cracks to keep out water, insects, and rodents. Make sure all of your receiving and handling equipment is ready to run. Auger flights should have flat edges. Sharp flighting causes excess grain damage, is dangerous to work around, can fail at any time, and should be replaced. Tubes, housings, trunking, and spouting needs to be inspected for wear spots, discoloration, dents, and general condition. Bearings should run free and easy and accept lubrication readily. Pulleys, belts, sprockets, and chains must be properly aligned

and tensioned and inspected for damage or wear. Properly lubricate all joints and gear boxes to manufacturer specifications. Electrical equipment should be thoroughly inspected for exposed wires, loose connections, rodent damage, open junction boxes, and general integrity by a trained professional before being tested. Make sure all safety circuits and components are in place and operating properly. Gas heaters require special caution when preparing for the drying season. It is best to rely on a trained service technician to ensure peak performance. If you

do attempt this yourself, inspection always should be done with the gas supply and the power turned off. Inspect and test all safety circuits, gas connections, and components. If the burner doesn’t fire normally when tested, immediately shut off all gas and power and call a professional. Attention to bins and equipment now will ensure they work properly when harvest arrives. Randy Holthaus is GROWMARK’s grain systems marketing manager. His e-mail address is rholthaus@growmark.com.

Farmland values increase in Illinois, nationwide BY DANIEL GRANT FarmWeek

Farmland values in Illinois recovered from a mild hiccup in 2009 and so far this year have returned to an upward trend that began after the 1980s farm crisis. The annual land values and cash rent report released this month by USDA showed Illinois farm real estate value, a measurement of the value of all land and buildings on farms, increased by $120 per acre from 2009 to 2010 to an average of $4,650 per acre. Meanwhile, the value of cropland in Illinois from 2009 to 2010 increased $150 per acre to a current average of

$4,820. The value of farm real estate and cropland in Illinois declined slightly in 2009 after reaching historic highs in 2008. “I think it’s dependent on where you’re at, but generally land values continue to hold strong,” said Bret Cude, a farm manager with Farmers National Co. in Nashville and president of the Illinois Society of Professional Farm Managers and Rural Appraisers. Nationwide, the average value of farm real estate ($2,140 per acre) increased 1.4 percent this year compared to 2009 while the average value of cropland ($2,700 per acre) increased 1.1 percent. Farm real estate values not

M A R K E T FA C T S

Feeder pig prices reported to USDA*

Weight 10 lbs. 40 lbs. 50 lbs. Receipts

Range Per Head Weighted Ave. Price $35.10-$43.00 $38.81 $55.56-$55.56 $55.56 n/a n/a This Week Last Week 24,367 27,275 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $77.09 $80.80 $57.05 $59.79

Change -3.71 -2.75

USDA five-state area slaughter cattle price Steers Heifers

This week $94.64 $95.00

(Thursday’s price) Prv. week Change $93.00 1.64 $93.00 2.00

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) This week Prev. week Change 112.82 113.30 -0.48

Lamb prices Confirmed lamb and sheep sales THIS REPORT IS NO LONGER AVAILABLE.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 08-05-10 7.1 14.2 42.0 07-29-10 10.7 23.0 34.0 Last year 11.9 15.0 36.0 Season total 1407.9 163.4 1729.0 Previous season total 1187.3 132.1 1639.7 USDA projected total 1470 1200 1975 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

only were strong in Illinois so far this year (up 2.6 percent) but also increased by a range of 1.3 percent to 2.4 percent in all states bordering Illinois — with the exception of Wisconsin, where the farm real estate value this year slipped 0.8 of a percent. “It’s a challenge determining prices because there’s not much selling right now,” said Cude, who reported farmers remain the top buyers of farmland, but interest from outside investors generally is on the rise. “What other investment can you get that held or increased in value the past 24 months?” The average cash rent also increased from 2009 to 2010, USDA reported. The average cash rent in Illinois this year is $169 per acre, up 3.7 percent

from a year ago. Nationwide, the average cash rent this year is up 3 percent. Cude believes rates for

recently negotiated cash rent agreements will remain stable this fall while the rates for older lease agreements could increase.

Contract complexities bear greater scrutiny BY MARTIN ROSS FarmWeek

In today’s dicey, stringent legal environment, a little contract eyestrain can save grain producers major migraines, Illinois Farm Bureau Senior Counsel Jerry Quick advises. Since Quick joined IFB’s staff in 1969, contracts have become “so much more complex,” he stressed at IFB’s Commodities Conference. Beyond standard sales contracts, growers are subject to production contracts, farmland leases, GMO crop technology agreements, and prepay agreements that lock in ag input prices and supplies. Perhaps contract complexity is nowhere more evident than in the emerging concept of “master agreements,” which would guide grain buyer-seller relationships over a set period. “I drafted my last original version of grain contracts in 1998 for GROWMARK, for use by its member companies,” Quick related. “Those were complex, but they’re even ‘worse’ now. There’s more language on the back; the print is smaller. “You as a farmer have to read and understand the ‘boilerplate’ — the language beyond just ‘I sold this much grain; this is the type of grain; this is how much I’m going to get for it; this is what I have to deliver.’” Potentially troubling are contract references to the “applicability” of National Grain and Feed Association (NGFA) Grain Trade Rules. While trade rules seem designed for large commercial grain buyers and sellers, rather than producer-elevator relationships, they also set forth standards for arbitration — use of a private party to hear and rule on alleged contract

violations. Growers who agree to contract arbitration provisions forfeit their ability to bring grievances before the courts. Quick stressed “there’s nothing wrong with arbitration, per se,” noting arguments that it might in some cases be faster and cheaper than a lawsuit, but he questioned the growing scope of issues covered by arbitration under current grain contracts. Arbitrators are “knowledgeable grain men” but seldom attorneys, he said. For example, non-lawyer arbitrators may be ill-suited to address issues such as grower liability for damage they cause on elevator property, he said. Livestock producers now may refuse arbitration requirements, but in Illinois, mandatory grain contract arbitration is becoming more prevalent. Quick questioned how many growers “have the leverage to go to their buyer and say, ‘I don’t like this arbitration clause; take it out.’” That makes it even more crucial for growers to consider their rights and options up front, especially given probable emergence in the next few years of lengthy master agreements that govern nearly all elements of the producer-elevator relationship over an extended period. Individual sales would then be covered under a series of shorter documents that include payment and delivery terms. Master agreements might offer a number of benefits and, in Quick’s view, their use “would probably be a good trend.” But given its likely length, a master agreement also could serve as a vehicle for more unfavorable producer provisions such as expanded arbitration requirements, he cautioned.

FarmWeek Page 11 Monday, August 16, 2010

PROFITABILITY Corn Strategy

C A S H S T R AT E G I S T

Crop sizes in focus T h e Au g u s t U S DA c r o p report, flawed as some may think it is, still provides the first good insight into the crop potential. This is particularly true for corn. Even though USDA doesn’t provide specific data on the growing crops other than yield, through the verbiage accompanying the data released, one can piece together an insight into plant and ear population, as well as get a sense of ear weights. USDA indicated ear counts were the second highest on record in the 10 objective-yield states, behind only last year. Ear counts were new records in Illinois, Minnesota, Missouri, and Wisconsin. Looking at past data, we’d estimate the ear count in the 10 states might be near 27,500 ears per acre, possibly a little higher. Using that and the yield forecasts, the implied ear weight would be just under .35 of a pound.

Basis charts

In looking back at the changes in USDA ear counts and implied ear weights through the growing season in years with similar weather, one can get a feel for what future reports might indicate for corn yields. There are limitations, because USDA has offered data only back to the early ’90s. But there have been a couple of years, 1995 and 2003, when temps were warm and late-summer moisture scarce, that do provide insight into what might lie ahead. In both instances, the ear counts declined from the early levels though the series of production reports. Neither saw a big decline, but there was a decline nevertheless. T h e i m p l i e d e a r we i g h t s declined in 1995, but went up in 2003. With USDA starting close to the record high this year, we tend to think weights could drop a little. Dropping the ear weight back toward average, and using an average relationship between the 10state average yield and the national yield, we could envision the possibility that USDA’s corn yield forecast could drop back into the 161.5- to 162-bushel range. That’s close to the trend yield we use, and not far under the 163.5-bushel estimate USDA had been using prior to the August report. One might characterize that as a good, average crop — one that should be large enough to meet demand, assuming the harvested acreage remains unchanged. Next month, USDA will release plant and ear population data, offering a better insight. And in October, it could adjust the acreage as it gets a chance to look at the acreage data producers report to the Farm Service Agency. AgriVisor endorses crop insurance by

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2009 crop: Wrap-up old-crop sales now. 2010 crop: High wheat prices are helping support December corn, but weather and USDA implications are supportive as well. Last week’s low in corn prices might end up counting as the six- to seven-week low. This opens the door for prices to test the $4.38 high and possibly strong resistance at $4.50-$4.52. We expect the preharvest peak to come soon, if it hasn’t already. Get sales up to recommended levels now. Fundamentals: The USDA pegged this year’s corn crop at a record 13.365 billion bushels, only slightly higher than expectations. Weather conditions through the Midwest remain mostly non-threatening, but temperatures have been warm enough to possibly have negative yield implications. Amid that small positive, one has to wonder if sluggish world economies are going to have negative demand ramifications.

Soybean Strategy 2009 crop: Old-crop basis levels increasingly give up the premium they have to new-crop prices. Don’t give up that premium. Wrap-up sales now. 2010 crop: November soybeans continue to stall when prices move near the $10.50-$10.60 resistance. Still, raise the target to $10.75 on November futures to boost sales to 60 percent. Fundamentals: Even though USDA forecast potential for a record yield — 44 bushels — traders feel that may be generous given recent weather. But a shift to late-season rains still could result in an exceptional yield this year. The 65-million-bushel increase in the export forecast on the accompanying supply/demand report reinforced ideas that Chinese demand could remain exceptionally strong this year. ✘ Fail-safe: Make a new-

crop sale if November falls through $10.09.

Wheat Strategy 2010 crop: After dropping sharply from last week’s peak, wheat appears to be finding renewed buying interest as world business is shifted from Russia. If the Chicago September futures move above $7.64, the highs could be challenged again. Sales should have been increased to 90 percent when September slipped below $7.40. Use strength for catch-up sales. For producers who can store

wheat, it is worth noting storage hedges are attractive this year, especially using hedgeto-arrive contracts. 2011 crop: New-crop sales were increased to 50 percent when Chicago July 2011 slipped below $7.35. Use strength for making catch-up sales. Fundamentals: USDA increased U.S. wheat exports 200 million bushels to account for the shift in world business that will occur with the Russian export halt. Last week’s wheat export sales were the highest they have been in three years.

FarmWeek Page 12 Monday, August 16, 2010

PERSPECTIVES

FAIR INVESTMENT

Illinois volunteers donate many hours of expertise to help young people each year, especially during the fair season. (FarmWeek file photo)

Valuable fair traditions even more valuable Amid an exhibit hall crammed with excited 4H’ers and their many projects, a show ring filled with immaculately groomed animals and their proud owners, and a quiet corner where a speech is practiced for the umpteenth time –- it is easy to overlook one of the most valuable contributions made at a county fair: Time. A connection with caring adults is really at the root of all county 4-H fairs. Learning, especially for children and teens in 4H and FFA, remains an imporKAY tant part. SHIPMAN During the daylong project judging at the recent McLean County Fair, I glanced around the exhibit hall and realized hundreds of hours of expertise were being donated. It was truly amazing to see. Professionals from many fields, college students, and older teens were matched one-on-one with young 4-H’ers. One excited 8-year-old boy ran over and gave his floral judge a high five. They both wore broad smiles. They probably had just met that day, but they had made an essential connection. She listened and made him feel important. Similar scenes are repeated many times throughout the summer across the state. Giving of time and experience by caring volunteers is making, and for a long time has made, a positive difference in the lives of Illinois children and teens. This difference is critical now when state budget cuts are forcing school districts to lay off teachers, increase class sizes, and reduce extracurricular activities. In classes that average 27 to 30 students, teachers find it difficult to give each student one-on-one attention. That’s why local volunteers, such as those at county fairs, are making an important contribution. Four-H volunteers in Illinois and 11 other Midwestern states donate an average of six hours each

week in the summer, according to an Extension survey released last November. And the survey respondents reported they had volunteered for six or more years. However, the kids and their families — let alone the public — probably aren’t aware of all the behind-the-scenes work done by those volunteers. The 4-H volunteers reported they spend as many hours in planning as they do working directly with young people. And the volunteers give more than time. Respondents reported their volunteering includes driving an average of 11 miles each month and donating an average of $26 in supplies each year. Most reported they believe they have helped young people learn new skills and gain self confidence. “Many kids who don’t have a lot of self esteem have the opportunity through 4-H to be really good at something that they are not offered anywhere else,” a survey respondent commented. “In school, you are recognized by your athletic ability or your academics. In 4-H, you can be grand champion with any of your projects. There is a level playing field.” But the youngsters aren’t the only ones who benefit. The study showed volunteering also has a positive influence on the adults, whether they are leading 4-H clubs, helping a child with a project, or sharing their expertise elsewhere. Some volunteers discovered they had hidden talents. Others enjoyed watching children develop into caring, giving, accomplished young adults who serve their families and communities. Many said volunteering made them feel that they belonged to something bigger than themselves. As the fair season draws to a close and the state struggles with a funding crisis, we would do well to remember that Illinois is broke, but not when it comes to volunteers. Kay Shipman, FarmWeek legislative affairs editor, is a 4-H leader and parent. Her e-mail address is kayship@ilfb.org.

LETTER TO THE EDITOR Time to implement animal institute law Editor: Several years ago, the late state Rep. Dave A. Wirsing of Sycamore forecast that one of the challenges facing the Illinois livestock industry would be the assault by “animal activists” such as the Humane Society of the United States. He felt regulations by government agencies and lawmakers needed to be backed by science, not some “feel good” rules that did not improve production and food safety. As a result of his forecast and keen interest in the importance of the Illinois livestock industry, he spent considerable time writing legislation, which is now law known as Public Act 093-0883. The structure of the institute is outlined in the law, calling for a governing board of 15 members, representing food animal production, allied agribusinesses, and non-agribusinesses, to be appointed by the governor. The act provides for an organization that has the responsibility to provide unbiased information. The board would have the power to accept funds from federal agencies, trade associations, industry organizations, universities and their sub-unit foundations, and other notfor-profit and private industries to carry out the purpose of the institute. A special fund was created by the act in the state Treasury for use by the institute. The institute is to gather information from existing sources such as research papers and other scientific data. (Details of the act are available by Googling “David A. Wirsing Food Animal Institute). However, the law has not been implemented by the governor’s office. Your article of July 5, 2010, outlines the activities that are happening in Ohio. The agreements have the appearance of more for political purposes than a scientific basis for changing the way food is produced. We have in Illinois the mechanism to use existing data for the benefit of Illinois agriculture and consumers. We might be able to prevent what is happening in Ohio from occurring in Illinois. It is time for the Illinois livestock and those in agriculture to work with the governor’s office to implement this law. I.RONALD LAWFER, Stockton

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