A N OA K WO O D J U N I O R High School teacher has been named the 2011 Illinois Agriculture in the Classroom (IAITC) teacher of the year. .......................................3
THE U.S. EPA is “not backing down” from efforts to target g reenhouse g as emissions, according to a Farm Bureau analyst. ............................... ................5
OSHA HAS HAD a bad reputation of coming in with a “hammer,” but is now trying to emphasize safety and health through cooperative programs. ..................7
Monday, December 20, 2010
Two sections Volume 38, No. 50
At long last, estate tax, ethanol battle over — for now FB supported exemption, rate prevail BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
Congress provided an 11th-hour reprieve for farm families and biofuels produc-
ers as the House came through with a compromise tax-spending package signed by the president Friday. After leaving producers and small businesses in limbo for more than a year, House lawmakers approved, 277148, a new, Farm Bureausupported $5 million estate tax exemption with a reduced 35 percent rate, for the next two years. And despite heavy Democrat rumblings, lawmakers extended the ethanol excise blenders tax credit for one year at its current 45-centper-gallon rate and resurrected the expired $1-per-gallon biodiesel blenders credit through 2011 and on a retroactive basis for 2010. The bill also includes continuation of personal income tax rates at their current levels and a top 15 percent capital gains rate, and offers a one-year Social Security tax cut. Because the House left the Senate-authored package intact, it moved directly to the president’s desk for signature.
American Farm Bureau Federation President Bob Stallman hailed President Obama and congressional leaders for crafting the tax benefits extension plan and “being committed to secur-
FarmWeekNow.com Listen to Sara Wyant’s comments about the just-passed tax package at FarmWeek Now.com.
ing passage.” It “offers considerable relief that will help farmers, ranchers, and rural communities in these difficult economic times,” he said. Americans faced Dec. 31 expiration of Bush-era tax cuts, the return of the estate tax with a low $1 million exemption and a 55 percent rate. Capital gains rates would have risen to a pre2002 20 percent. “The tax package is very significant for Farm Bureau; it addressed a number of priorities on which Illinois Farm Bureau has been working throughout the 111th Congress,” said IFB President
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Philip Nelson. University of Illinois Extension ag tax specialist Gary Hoff noted the measure restores the option of a “step-up in basis” for farm estates. This year, producers have operated solely on a “carryover basis,” with estates valued for future sale potentially at prices decedents originally paid. In many farming operations, “that could go back three or four generations, when you had an extremely low basis on real estate,” Hoff told FarmWeek. The Senate had voted 8315 Dec. 13 to end debate on the tax compromise, and passed the measure the next day. In response to an IFB action request, more than 600 grassroots contacts were made to Sens. Dick Durbin, a Springfield Democrat, and Mark Kirk, a Highland Park Republican, both of whom supported the bill. IFB mounted a second campaign to lobby Illinois’
House members for bill passage. The biodiesel industry had sustained significant downsizing and some closures as a result of the biodiesel credit expiration. The tax bill includes an expedited claims process that should enable fuel suppliers and distributors to quickly take credits on biodiesel purchased over the past year. “We’re working to make this as easy as possible for them,” National Biodiesel Board spokesman Kaleb Little told FarmWeek Friday. “There were some (plant) shutdowns, but from what we’ve heard from some of our members, they will be See Battle, page 4
No FarmWeek next week There will be no FarmWeek published next week. FarmWeek is published 50 times a year, with no issues on the Mondays following Thanksgiving and Christmas. The next issue you receive will be dated Jan. 3, 2011.
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FarmWeek Page 2 Monday, December 20, 2010
GOVERNMENT
Quick Takes QUINN NAMES NEW CHIEF OF STAFF — Gov. Pat Quinn will rely on his former top operations officer to be the chief of staff in his new administration. Last week Quinn named Jack Lavin, who was responsible for the administration’s federal stimulus and jobs programs, to the top post. Before joining Quinn’s cabinet in February 2009, Lavin had ser ved as director of the Depar tment of Commerce and Economic Opportunity. FRESHMEN ON COMMITTEE — Two freshman Illinois congressmen will represent the Midwest in forthcoming ag policy debate next year. New U.S. House Ag Committee members include Re p. Bobby Schilling, a Colona Republican who defeated Rock Island Democrat Phil Hare, and Rep. Randy Hultgren, a Winfield Republican who captured Batavia Democrat Bill Foster’s seat. Schilling is a pizza restaurant owner who formerly was a union steward and a top-rated re presentative with Pr udential Financial. Hultgren is an investment adviser who has occupied the 48th District Senate seat in the Illinois General Assembly. Current Ag Committee member Tim Johnson, an Urbana Re publican, was awaiting news of his 2011 committee assignments at FarmWeek’s Friday deadline. MINISH NAMED PROVOST AT SIUC — Gary Minish, who recently retired as dean of the Southern Illinois University Carbondale (SIUC) College of Agricultural Sciences, joined the SIUC administration as provost and senior vice chancellor effective Dec. 15. Minish served as ag dean and a professor of animal science, food, and nutrition from 2004 to 2010. Prior to that, he held several administrative positions at Virginia Tech. As the chief academic officer, Minish will play a key role in furthering teaching, research, and service at the university.
(ISSN0197-6680) Vol. 38 No. 50 December 20, 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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USDA to study cost/benefits of the proposed GIPSA rule BY DANIEL GRANT FarmWeek
Livestock producers around the U.S. apparently expressed enough concern about proposed regulations under the Packers and Stockyards Act that USDA plans to re-examine the situation before it moves forward. Ag Secretary Tom Vilsack last week announced USDA will conduct an “exhaustive” cost/benefit analysis of the livestock marketing and contracting rule proposed by the Grain Inspection, Packers, and Stockyards Administration (GIPSA), according to Steve Meyer and Len Steiner, authors of the CME Group Daily Livestock Report. USDA previously said it did not plan to conduct more analysis of the proposed rules. But the Ag Department was bombarded by a reported 66,000-plus comments from
the livestock industry during a comment period that ended Nov. 22. “We really hoped (USDA) would do that” cost/benefit analysis, said Steve Foglesong, president of the National Cattlemen’s Beef Association and a producer from Astoria. “They heard the concerns we have in the countryside, so they’re going to take another look.” GIPSA in June published proposed rules in the Federal Register that target packer ownership of livestock in an effort to address concerns about a lack of competition. However, many livestock producers fear the new regulations would end quality premiums and other specialty contracts. Foglesong noted that in 2010 during a time when margins were being squeezed by higher feed costs cattle producers involved with U.S. Pre-
mium Beef — a producerowned beef company — earned an average of $33.45 per head above the cash market. “These (proposed GIPSA rules) are so vague, nobody wants to risk losing these business practices,” Foglesong said. “If (USDA officials) are going to do a more in-depth analysis, it sounds like they’ll make some adjustments to the rule and hopefully find some middle ground.” Vilsack in a conference call with meat industry officials indicated the economic evaluation of the proposed GIPSA rule will be done by the Office of Management and Budget, according to the Daily Livestock Report. USDA chief economist Joe Glauber also will be involved in the process. The ag secretary, however, did not provide a timeline regarding USDA’s next steps.
IEPA extends deadline for NPDES permit comments BY KAY SHIPMAN FarmWeek
The public will have until Jan. 7 to submit comments on a proposed state permit for pesticide applications now that the Illinois Environmental Protection Agency (IEPA) has extended the deadline. On Nov. 11, IEPA issued the draft permit and set a Dec. 13 deadline for comments. Illinois Farm Bureau and other agricultural groups requested an extension. IFB plans to submit comments about the general state National Pollution Discharge Elimination System (NPDES) permit. The permit would cover pesticide applications for mosquito and other insect pest control, weed and algae control, aquatic nuisance animal control, forested area pest control, and other pesticide uses, according to IEPA. The general NPDES permit
relates to the Clean Water Act and pollutant discharges into the waters of the U.S. The federal EPA also is developing a general NPDES permit.
Illinois to share in Dannon settlement The Dannon Co. Inc. agreed to pay $21 million to 39 states, including Illinois, for making unsubstantiated health claims about its yogurt. Illinois Attorney General Lisa Madigan said this is the largest nationwide consumer protection settlement concerning food products. She predicted it will reverberate throughout the food industry and make companies more conscientious about advertising health benefits of food and drink. Madigan and the other attorneys general alleged Dannon’s claims about Activia yogurt and DanActive dairy drink were not backed by competent, reliable scientific evidence. Under the settlement, Dannon cannot claim these products can prevent, treat, or cure a disease without a solid basis for such claims. Illinois will receive $425,000 for consumer education and other activities conducted by the consumer fraud division in the attorney general’s office, according to Maura Possely, a spokesman for Madigan. The attorneys general and the Federal Trade Commission (FTC) worked together to investigate Dannon. The FTC reached a separate agreement with the company.
SEASON’S GREETINGS
K u r t Wa l k e r u s e s a wreath on his barn to offer season’s greetings to those who pass by his farm near Atlanta in Logan County. (Photo by Ken Kashian)
The Agriculture Environmental Alliance, of which IFB is a member, will meet Jan. 5 to discuss concerns about the permit.
Page 3 Monday, December 20, 2010 FarmWeek
EDUCATION
Chicago students sharing biodiesel expertise, message Mendota FFA to reap benefits BY KAY SHIPMAN FarmWeek
Biodiesel club members at a Chicago magnet high school are promoting renewable energy in their city. Not only are they sharing their expertise, but the students also will donate a biodiesel processor to a LaSalle County FFA chapter. The first student-to-student exchange between the Whitney Young Magnet High School (WYMHS) biodiesel club and the Mendota FFA chapter was to have occurred Sunday — weather permitting. “These city kids are reaching out to rural schools,” said Brian Sievers, WYMHS math teacher and the biodiesel club sponsor. Sievers said his fivemember club had enough materials donated to build two biodiesel processors and wanted to share one with a school that didn’t have access to as many resources. The WYMHS biodiesel club collected used cooking oil, built one biodiesel processor, and produced biodiesel. Club members tested the emissions of their biodiesel at an Illinois Department of Transportation (IDOT) vehicle testing facility in Chicago.
Illinois Department of Transportation (IDOT) officials, center, calibrate equipment to test the biodiesel made by the biodiesel club at Whitney Young Magnet High School (WYMHS) in Chicago.
At the same facility, they conducted tests that compared a vehicle’s performance on diesel with the biodiesel they made from new oil and used cooking oil.
FarmWeekNow.com To view additional photos of the WYMHS biodiesel club and its website, visit FarmWeekNow.com.
The students reported the biodiesel reduced emissions by about 80 percent when compared to using diesel in the same vehicle. The students also will conduct cutting-edge tests on the biodiesel at nearby Argonne National Laboratory, and they are working with University of
Richter named IAITC teacher of the year Kammie Richter of Oakwood Junior High School at Oakwood in Vermilion County, is the 2011 Illinois Agriculture in the Classroom (IAITC) teacher of the year. Richter will represent Illinois in the competition for the national Excellence in Teacher Agriculture Award. She will receive a plaque and a trip to the Kammie Richter 2011 National Agriculture in the Classroom Conference in Ft. Lauderdale, Fla., in June. Richter and her husband, Mark, own a small family farm. She regularly integrates agriculture into her existing social studies and art curriculum. She also incorporates agriculture into lessons on economics, careers, food, and culture.
Richter allows her students to experience agriculture, food production, and food science through innovative lessons. For example, in an assembly-line project, the students produce a snack mix with each student representing a different part of the food-delivery system. She also features local history and agriculture in relation to Abraham Lincoln and John Deere and the lasting contributions that both men made to agriculture. The runner-up for the teacher of the year award is Bobbi Callmer of Lisbon Grade School at Newark in Kendall County. Award finalists include: Laura Rapach, Davis Elementary School, St. Charles, Kane County; Ellen Steenrod, Pearl City School, Pearl City, Stephenson County; and Deborah Daehler, River Bend Middle School, Fulton, Whiteside County.
Illinois Chicago professors. Information is online at {www.wyheroes.tk}. The Mendota FFA Chapter had considered building a biodiesel processor and now not only will gain a system but also expertise from fellow high school students through the exchange with WYMHS. “It will be a great experience for our kids to see their (WYMHS) research and hear their perspective. Our students are very excited about this opportunity,” said Jeff Landers, Mendota High School agriculture teacher and FFA adviser to the 70-member chapter. Landers plans to integrate
Brian Sievers, a math teacher at Chicago’s Whitney Young Magnet High School (WYMHS), and student Anna Hernandez titrate used oil that will be converted into biodiesel by the WYMHS biodiesel club. The titration process denotes the amount of potassium hydroxide that will be needed per liter of oil. (Photos courtesy WYMHS biodiesel club)
the biodiesel processor into his agriscience classes and the biodiesel use into his ag mechanics classes. Chapter members will use the biodiesel in farm equipment used on their 18-acre land lab, where they grow corn, soybeans, pumpkins, squash, and gourds. While the knowledge exchange is under way, the biodiesel processor exchange will happen in a couple of months. The WYMHS club will build and exhibit a processor
at the Chicago Museum of Science and Industry tentatively in early January. The display will be up for about four weeks, according to Sievers. After the display ends, WYMHS club will dismantle the processor and take it to Mendota. In addition to donating their biodiesel processor, the WYMHS students also are interested in donating the biodiesel they continue to produce. For more information, contact Sievers at bsievers3@comcast.net.
FarmWeek Page 4 Monday, December 20, 2010
AG BUSINESS Midwestern bank disappointed
Proposed Farm Credit merger seen as net positive BY MARTIN ROSS FarmWeek
Farm Credit Services (FCS) of Illinois spokesman Rod Stoll believes a proposed merger between two of the nation’s five Farm Credit district banks “is going to make our system a little more efficient,” despite some disappointment in the Midwest. Wichita-based U.S. AgBank and Denver-based CoBank last week announced plans to pursue a merger in 2011. The merger, which requires Farm Credit Administration (FCA) and stockholder approval, would provide combined financing to Farm Credit associations serving more than 70,000 farmers and other rural borrowers in 23 non-Midwestern states. The Farm Credit System’s current five district banks oversee 87 regional associations. Mahomet-based FCS of Illinois and Normal-based 1st Farm Credit Services operate within the Minnesota-based
AgriBank’s 15-state purview. CoBank finances Alaska, Connecticut, Idaho, Maine, Massachusetts, Montana, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Vermont, and Washington associations. It provides retail loans and other services to agribusinesses including GROWMARK, and finances rural infrastructure. CoBank had $60 billion in total assets as of Sept. 30. AgriBank had hoped to court a marriage with U.S. AgBank, but U.S. AgBank Chairman John Eisenhut argued a CoBank merger “best positions our customers to continue receiving reliable credit at a reasonable and competitive cost.” “We have geographical restrictions CoBank doesn’t,” AgriBank’s Stoll told FarmWeek. “They can do certain things because they deal directly with cooperatives. “AgriBank was disappointed — it really wanted to get
U.S. AgBank. We’ve been the big dog of all the bank districts: We have the largest portfolio. But whenever AgBank and CoBank combine, CoBank becomes larger.” That said, he believes the merger offers efficiencies for a system that currently includes “a lot of redundancy
between districts.” Stoll suggested more consolidation may be coming, though “we have to move at our regulator’s speed.” U.S. AgBank, which serves associations in Arizona, California, Colorado, Hawaii, Kansas, Nevada, New Mexico, Oklahoma, Utah, Idaho, and Wyoming, posted roughly
$25 billion in total assets as of Sept. 30. AgriBank’s 2010 third quarter net income was $158.8 million, compared with $104.4 million last year. CoBank’s third-quarter income rose from $116.8 million last year to $132.0 million for the period ending Sept. 30.
Edwardsville wind monitoring program planned The Illinois Institute for Rural Affairs (IIRA) at Western Illinois University (WIU) and Southern Illinois University Edwardsville (SIUE) recently agreed to develop a test site for monitoring wind velocity in Edwardsville. “In hosting a meteorological (met) tower, the SIU test site will be gathering information regarding wind potential for its own site, as well as contributing to a statewide wind database and map that will provide valuable information to people throughout Illinois,“ said Jolene Willis, wind-energy pro-
gram assistant at IIRA’s ValueAdded Sustainable Development Center. A 197-foot met tower will be installed for 12 to 14 months on or near the site, which potentially could be used for a wind turbine. The tower will transmit realtime data via a cellular modem. The data are available for viewing at Illinois Wind’s website {www.illinoiswind.org}. To accurately forecast how much electricity may be generated at a particular site, wind velocity must be measured for at least a year. Robert Washburn, SIUE director of facilities management, noted the campus is located in an area that historically has been considered marginal for wind generators. “SIUE’s unique location on the bluffs overlooking the Mississippi River bottoms potentially results in a more promising wind pattern,” Washburn said. SIUE and WIU officials
look forward to testing the theory, he added. “If there is a significant impact on potential wind energy due to the bluffs, the tower is located to measure that effect,” Washburn said. “We’re already installing a small wind turbine and photovoltaic array (solar panels) at SIUE’s Environmental Resource Training Center to demonstrate the potential for the use of renewable energy at waste-treatment plants.” The meteorological tower will provide data to allow SIUE officials to evaluate whether wind turbines are a sound investment at that location. To learn more about the wind-monitoring program, contact Willis at the IIRA Value-Added Sustainable Development Center at 800-5269943. Visit the Illinois ValueAdded Sustainable Development Center online at {www.value-added.org}.
Nominations sought for agriscience award Nominations are being accepted for 2011 agriscience awards presented by the Christopher Columbus Fellowship Foundation in partnership with the American Farm Bureau Federation. This year, Rosemary Chapple, a 2010 graduate of Waterloo High School of Waterloo, Ill., was one of three high school students awarded the nationwide award. Nominations are being accepted for high school students, high school teachers, and adult scientists. Winners will be selected based on their excellence in agriscience and their ability to highlight the importance of agriculture in the 21st century. Nominations are accepted online only at {www.agriscienceawards.com}. The deadline is March 15. For more information, contact Judi Shellenberger, foundation executive director, at 315-258-0090 or e-mail her at judithmscolumbus@cs.com.
Battle Continued from page 1 able — hopefully, fairly soon — to increase their production and possibly even bring back some staff that were laid off.” The bill extends the U.S. tariff on imported ethanol at its existing 54-cent-per-gallon level and the 10-cent-per-gallon tax credit for ethanol producers that produce no more than 60 million gallons annually. The measure extends through 2011 a 50-cent-per-gallon alternative fuel credit and a 30 percent investment tax credit for alternative vehicle refueling infrastructure, which helps retailers market to “flex-fuel” car owners.
Page 5 Monday, December 20, 2010 FarmWeek
ENVIRONMENT
EPA rule detrimental to a renewable future? BY MARTIN ROSS FarmWeek
A growing corps within Congress has joined ag and forestry interests concerned about a wrinkle in U.S. Environmental Protection Agency (EPA) greenhouse gas (GHG) regulation that could hinder biomass energy development. National Alliance of Forest Owners (NAFO) President David Tenny challenged EPA’s “sudden change in policy” in issuing a GHG “tailoring rule” which virtually equates the greenhouse impact of biomass combustion with that from the use of fossil fuel. Thirty-two congressmen wrote EPA last week seeking revision of the rule’s biomass provisions. The rule disregards biomass’ “natural carbon cycle,” which previously was determined to result in a “net neu-
tral” impact on atmospheric carbon dioxide levels, Tenny said. EPA made its policy change without inviting industry input and in conflict with administration renewable energy goals, he said. Policy uncertainty created by potential regulation of biomass energy producers threatens forest-related energy ventures nationwide, consultant Brooks Mendell concluded in a study for NAFO. Currently, the tailoring rule would target sources that annually emit a minimum 75,000 tons of GHGs, including some 434 “wood bioenergy” projects, Mendell said. Nearly half of those involve electricity generation, and the consultant fears EPA’s move could stunt congressional approval for or individual states’ abilities to comply with a proposed national
EPA ‘not backing down’ on greenhouse agenda The U.S. Environmental Protection Agency (EPA) is “not backing down” from efforts to target greenhouse gas (GHG) emissions, according to a Farm Bureau analyst. Beginning Jan. 2, EPA will begin implementing GHG requirements for “stationary” greenhouse sources such as utilities and manufacturers on a two-tier basis. Over the next six months, only entities already required to obtain EPA air quality permits will be required to meet GHG standards. Those companies will be required to use “best available control technologies” to cut carbon dioxide emissions to obtain an EPA permit. In July, added permits will be required for currently nonpermitted entities with significant annual GHG emissions. Meanwhile, states that can’t or don’t regulate GHGs under current law either must change statutes or submit to default federal rules. Illinois reportedly plans to complete necessary revisions by summer. “It will raise energy costs,” American Farm Bureau Federation regulatory specialist Rick Krause told FarmWeek. “Right now, under the EPA’s house of cards, ag sources aren’t directly affected. But the effects would be just like what would happen with cap-and-trade. “Utilities will have to pay more and manufacturers will have to pay more to comply with those regulations, and those costs would get passed on. “These programs are going to have to be administered at the state level. Having a state EPA (as does Illinois) and having a good one is very helpful. “Unfortunately, a lot of the states aren’t ready to go, or they don’t want to go, but they’re being dragged kicking and screaming by (EPA) to do this. It’s almost like an unfunded mandate.” Meanwhile, the Washington U.S. Court of Appeals rejected a request from utilities, refiners, and the state of Texas to delay greenhouse regulation. The companies and Texas officials argued regulations would be too costly and sought to delay rules pending the outcome of a lawsuit challenging EPA’s 2009 ruling that GHG emissions endanger human health. The D.C. court ruled the plaintiffs “have not shown that the (economic) harms they allege are ‘certain,’ rather than speculative.” The ruling was “yet another blow was dealt in favor of overreaching government regulation and against the economic well-being of the American people,” National Petrochemical and Refiners Association President Charles Drevna stated. — Martin Ross
renewable electricity standard. Illinois Farm Bureau delegates at the annual meeting in St. Louis voted to seek congressional help in reining in EPA’s regulatory authority.
‘Each year ... our nation’s forests sequester somewhere in the neighborhood of 800 million metric tons of carbon.’ — David Tenny National Alliance of Forest Owners
While University of Illinois Energy Biosciences Institute senior regulatory associate Jody Endres argues EPA’s overall greenhouse policy is not necessarily “all negative,” she said the tailoring rule
could have key implications for Illinois. Endres noted the state’s “robust forestry industry,” rising interest in commercializing miscanthus and other biomass crops, and existing renewable electricity standard. “To the extent any law or regulation either positively or negatively affects any biomass feedstock, it will affect the market for a miscanthus-based fuel or a miscanthus-based feedstock for electricity,” she told FarmWeek. Mendell’s study did not address liquid biofuels, but he cited projects across the U.S. aimed at developing “more than one type of wood-related energy,” be it electricity generation and biofuels, generation and combustible pellets, or liquid fuel and pellets. Further, he sees “a nice fit” for biomass in the prospective move from fossil fuel vehicles to electric cars, which would requires a ramp-up in power generation.
Support for biomass energy extends well beyond the commercial sector. The National Association of Conservation Districts (NACD) has called on Congress to fully fund farm bill energy programs, which NACD President Steve Robinson said “support the environment and our national security” as well as promote rural jobs and economic development. NAFO’s Tenny called U.S. forest management and use “one of the great success stories when it comes to carbon.” By ignoring carbon sequestration (storage), EPA is “skewing the picture” regarding biomass’ greenhouse impact, he said. “Each year ... our nation’s forests sequester somewhere in the neighborhood of 800 million metric tons of carbon,” Tenny told FarmWeek. “That comes not withstanding all the uses of our forests. We use our forests for housing, consumer products, for energy, and a lot of other products.”
FarmWeek Page 6 Monday, December 20, 2010
EMERGING ISSUES
Ag economist: Good prices projected to continue near-term BY DANIEL GRANT FarmWeek
Farmers should continue to have opportunities in the near-term to sell grain at very attractive prices. Darrel Good, University of Illinois ag economist, last week predicted crop prices will continue to hover in historically high price ranges for the months leading up to spring planting. “There are a number of supportive factors at work. Obviously, there are some reasons why we’re at $5.50 corn,” Good said during the Illinois Farm Economics Summit in Bloomington. “Will it continue? I think so, at least short-term.” Good noted the current USDA estimate for ending stocks of corn (832 million bushels) is at its lowest level since 1995. That just happened to be the year corn first rallied to $5. USDA on Jan. 12 will issue its final crop production estimates for 2010. “I’m not expecting a big change in the yield forecast (around 154 bushels per acre
‘There are a number of suppor tive factors at work. Obviously, there are some reasons why we’re at $5.50 corn.’ — Darrel Good University of Illinois agricultural economist
nationwide),” Good said. “It certainly isn’t a short crop, but the yield is less than the market anticipated.” Meanwhile, end users continue to consume crops at a blistering pace. The U.S. currently is consuming about 1.5 million bushels of corn per hour, and soybean exports in October where being shipped from the U.S. at a rate of 10 million bushels per day, according to the ag economist. Soybean exports this month were projected to reach a record high total for the year of 1.59 billion bushels. And that run could continue as weather issues have
developed in Argentina where so far this growing season rainfall has totaled just half its normal amount in key crop-producing areas. “We could see a modest reduction in the South American soy crop,” said Good, who noted that U.S. bean stocks represent less than 5 percent of annual consumption. “A shortfall would be very supportive of prices.” The tight crop supplies and strong demand will force the market in coming months to bid for acres. Good said U.S. corn plant ings next year may need to rise by three to four million acres to meet demand and rebuild supplies.
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“The market needs to motivate an increase in corn acres next year,” he said. “How many more acres depends on what the
market projects for yield.” In other market news, Good re por ted hog prices for 2011 are projected to averag e near this year’s mark of about $55 per hundredweight while cattle prices next year could averag e close to $100, up from the mid-$90s this year. “Those prices look high, but they are required to keep margins in the black,” Good added.
Developers to build two new wind farms in state Two new wind far ms will be built in Illinois following last week’s announcement of new energ y procurement contracts by the Illinois Power Agency (IPA). Chicago-based Invenerg y LLC will constr uct its proposed Bishop Hill II Wind Far m in Henry County. Goldwind USA and Mainstream Renewable Power will build the Shady Oaks project in Lee County. The projects are to be operational and delivering power to ComEd and Ameren by June 2012. The state’s competitive energ y procurement process awarded 20-year power purchase agreements to several renewable energ y facilities, including the state’s two new wind far ms, in Illinois and surrounding states. It marked the first time the state solicited bids of this type under the state’s renewable energ y standard law. The law requires the state’s electric utilities to buy 5 percent of their power from renewable sources this year. The amount escalates so that by 2025, 25 percent of the power will come from renewable sources. Cooperative utilities are not impacted. The IPA awarded contracts to 12 wind and solar projects in Illinois and surrounding states. Most of the contracts went to existing facilities that currently are selling power without a power purchase agreement. Invenerg y also will build a solar energ y facility in Illinois.
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At the Heart of a Growing America 1st Farm Credit scholarship — 1st Farm Credit Service is offering 24 $1,000 scholarships for graduating high school seniors who have been accepted into an agriculture curriculum or a career area that contributes to the quality of rural life at a university, college, or community college. Eligible students must either reside or attend high school within 1st Farm Credit’s service territory. The deadline is Feb. 15. Recipients will be selected based on academic achievement, community and agricultural youth organization involvement, and a brief essay. Completed applications with typed essays, high school transcripts, and a recent photo should be sent to a local 1st Farm Credit Services office or mailed to: 1st Farm Credit Services Scholarship Program, Attn: Karen Blatter, 2000 Jacobssen Drive, Normal, Ill., 61761. For an application or more information, go to a local 1st Farm Credit Services office or online to {www.1stfarmcredit.com} under the “About Us” tab.
Page 7 Monday, December 20, 2010 FarmWeek
HEALTH AND SAFETY
OSHA seeks balance in ag safety efforts BY MARTIN ROSS FarmWeek
Some may view the federal Occupational Safety and Health Administration (OSHA) as an iron-fisted regulator, but the agency is equally free with a helping hand when it comes to grain safety. Kathy Webb, a Midwest area director with the Department of Labor’s workplace safety arm, is helping a coalition that includes Illinois Farm Bureau and other groups, university experts, agribusiness representatives,
and the Illinois Department of Agriculture shape education, prevention, and outreach strategies for reducing grainrelated accidents and fatalities at the elevator and on the farm. The coalition is known as the Illinois Grain Safety Coalition (IGSC). Since 1988, OSHA has enforced a grain handling standard for non-family farm facilities with more than 10 employees. Through its “local emphasis” program, the agency is authorized to inspect individual facilities for possible standards violations.
At the same time, OSHA over the years has published a variety of safety and health pamphlets for elevator workers as well as sponsoring safety conferences across the state. Spurred in part by the summer deaths of two teens at an Illinois elevator, Assistant Labor Secretary David Michaels sent 3,300 letters to farmers in August highlighting grain “bridging,” combustible gases, electrical risks, and other harvest/post-harvest hazards and outlining OSHA safety rules.
“For many, many years, OSHA has had a bad reputation of coming in with a hammer,” Webb told FarmWeek. “In recent years, we’ve tried to strike a balanced approach to safety and health, not only through enforcement but also through cooperative programs, reaching out to industries we have jurisdiction over and educating and training them. “We’re not always 100 percent successful, because fatalities and serious injuries still occur. But they’ve dropped drastically because
there is an OSHA.” As with many sectors, farm risk is largely “a cultural thing,” Webb suggests. Successful, accident-free repetition of seasonal chores (“the same old/same old”) can lead to potentially lethal on-farm complacency, “and changing that behavior is difficult,” she said. Key challenges for safety officials include educating producers and workers on evolving safety technologies and, according to Webb, “trying to reach the right audience” — a goal for IGSC.
NRCS offering grants for greenhouse reduction, sequestration projects The Natural Resources Conservation Service is offering conservation grants for large-scale demonstration projects geared toward reducing greenhouse gas emissions and promoting carbon sequestration. The application deadline is Feb. 11. A total of $5 million is available through the conservation innovation grant program for proposals that meet the following requirements: • Promote the adoption of conservation systems and practices for reducing greenhouse gas emissions and sequestering carbon; • Quantify the impacts of applied conservation practices on emissions and carbon sequestration;
• Demonstrate and further develop opportunities for marketing environmental credits associated with reducing emissions and/or increasing carbon sequestration; • Quantify the environmental benefits of the practices and work with greenhouse gas trading groups to help eligible farmers interested in selling emission-reduction credits; and • Assess the market response to the availability of agricultural greenhouse gas credits. The conservation innovative grant program is voluntary and intended to speed development and adoption of innovative conservation practices and technologies.
Project proposals must involve farmers who are eligible for the Environmental Quality Incentives Program. Funding will be awarded through a nationwide competitive grants process. Applications will be accepted from all eligible individuals, non-federal governments, and non-gov-
ernmental organizations. At least half of the total cost of the demonstration project must come from non-federal matching funds. To apply electronically, go online to {www.grants.gov}. Applications may be mailed to: USDA Natural Resources Conservation Service; Conservation Innovation Grants Pro-
gram; National Technology Support Team, Room 6227-S; 1400 Independence Ave. SW; Washington, D.C. 20250.
FarmWeek Page 8 Monday, December 20, 2010
LIVESTOCK
Livestock producers provide quality assurance to consumers BY DANIEL GRANT FarmWeek
Quality assurance programs started in the 1980s by the livestock industry have become useful tools to reassure uninformed and, in some cases, misinformed consumers about the safety of meat production. The Cattlemen’s Beef Board last week called on cattle producers who have not taken advantage of it to participate in the highly successful Beef Quality Assurance (BQA) program. Meanwhile, the Pork Quality Assurance (PQA) Plus program recently reached a significant milestone as the number of producers nationwide to achieve PQA Plus certification reached 50,000. Both quality assurance programs were started in the 1980s to improve food quality/safety and in recent years were expanded to include a focus on animal care and husbandry.
“The quality assurance program for our industry is about validating producers’ integrity,” said Dee Griffin. He is feedlot production management veterinarian and professor at the University of Nebraska Great Plains Veterinary Educational Center, who spoke last week during a webinar hosted by the beef checkoff. “Consumers don’t know who we (beef producers) are. This gives us a way to communicate with consumers.” Beef producers through the BQA program have reduced antibiotic residue levels in meat from a significant problem (about 21 percent of beef rounds in cows had injection site lesions in 1991) to a rare occurrence as less than 1 percent of rounds contained lesions in the past five years, according to Griffin. The Food and Drug Administration does not
Wes Fick of Manito last week fed cattle on the Top Line Farm near Tremont in Tazewell County. Brad Bergman, livestock manager, said the farm’s 150 cows should produce 130 calves in the spring. The farm also produces corn and soybeans in addition to Saddlebred horses. (Photo by Ken Kashian)
allow meat with any residue into the food supply chain.
Griffin noted that bruising in market cows costs the industry an estimated $100 million each year. “The program targets potential food safety concerns,” Griffin said. “We’re on the right track to making residues a thing of the past.” Producers through the BQA program have improved the care for animals by focusing on better oversight of feeding programs, vaccination withdrawal times, and recordkeeping. “You can’t manage what you can’t measure,” Griffin said. “About 80 percent of residue could be avoided if you check records.” Online training for the BQA program is available at {www.AnimalCareTraining. Org}. More information also is available at {www.bqa.org}. Meanwhile, pork producers through the PQA Plus
program improve the wellbeing of their animals and farms by focusing on 10 good production practices that promote pork safety and animal health/care. In order to qualify for the program, pork producers must have an on-site assessment by a trained adviser. The Illinois Pork Producers Association (IPPA) and University of Illinois will hold training sessions for individuals who want to become PQA Plus advisers and for those who need recertification. The training sessions will be held March 10 and May 19 at the IPPA office in Springfield. So far in Illinois, 3,578 individuals have received PQA Plus certification and 413 farms have achieved site status, IPPA reported. For more information, visit the website {www.ilpork.com}.
Auction Calendar
Auction Service. topauctions247.com/paspolo Sat., Jan. 8. 10 a.m. Farm machinery. Jim and Maxine Barth, KEYESPORT, IL. Tom Roniger and Mike Schwarz, Auctioneers. auctionzip.com (zip 62249) or the shoppersreview.com Tues., Jan. 11. 10:30 a.m. Farm equipment. A. Kraig Krause, HAVANA, IL. Sanert Auction Service. www.sanertauctions.com Thurs., Jan. 20. Real Estate Auction. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc.com Thurs., Jan. 27. Real Estate Auction. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc.com
Tues., Dec. 28. 9 a.m. Tools, Welders, Machinery, Eq., Trucks and Trailers. Du-mont Companies, MACKINAW, IL. Schmidgall Auction Services, Inc. www.topauctions247.com/schmidgall Tues., Dec. 28. 6:30 p.m. Land Auction Hamilton Co. Rueben Flannigan, MCLEANSBORO, IL. Jamie Scherrer Auction Co. www.jamiescherrerauction.com Wed., Dec. 29. 10 a.m. Retirement Auction. Carl and Jan Krusa, BLUFFS, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Wed., Dec. 29. 10:30 a.m. Farm machinery and miscellaneous. Dwight Oetzel Estate, PROPHETSTOWN, IL. Public
Page 9 Monday, December 20, 2010 FarmWeek
FROM THE COUNTIES
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UREAU — Wellness screenings will be from 9 a.m. to 4 p.m. Monday (today) at the Farm Bureau office. Screenings will include carotid arteries, abdominal aortic aneurysm, peripheral artery disease, and osteoporosis. Cost is $90. Call 877-7328258 for an appointment. • Farm Bureau will sponsor a 14-day, 13-night trip July 25 through Aug. 7 to Alaska. Tours will include Denali, McKinley Explorer Rail Discovery Sternwheeler, and glacier cruise. Call the Farm Bureau office at 815-875-6468 for an itinerary or more information. UMBERLAND — The Women’s Committee is sponsoring a holiday food drive for Cumberland County food pantries. Nonperishable items may be dropped off at the Farm Bureau office until Jan. 26. • The Wildlife Committee will sponsor a Habitat Land Management award. Specifications include water supply, food, wildlife shelter, and habitat diversity. Members may nominate themselves, friends, or relatives who qualify. Call the Farm Bureau office at 217-849-3031 for more information. ANKAKEE — A stroke detection plus screening will be Tuesday, Jan. 11, at the University of Illinois Extension office, Bourbonnais. Cost is $90. Call 877732-8258 for an appointment or more information. • The Governmental Affairs and Marketing Committee will sponsor a WILL AM580 market outlook panel discussion at 7 p.m. Tuesday, Jan. 18, at the University of Illinois Extension office, Bourbonnais. Call the Farm Bureau office at 815932-7471 for reservations or more information.
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EE — The Marketing Committee will sponsor a bus trip Thursday, Jan. 27, to Chicago. Included will be tours of the Chicago Board of Trade, Federal Reserve Bank of Chicago, Willis (formerly Sear’s) Tower Sky Deck, and the Cook County Sheriff Department’s greenhouse project. Cost is $55 and includes lunch and admission. Send a check and registration by Monday, Jan. 10, to the Farm Bureau office. Call the Farm Bureau office at 857-3531 for more information. • The Lee County Farm Bureau Foundation is taking applications for its newest program, “Books by the Bushel.” It is giving away “Books by the Bushel” to organizations that can benefit from a bushel basket of agricultural books. Applications are available on the website {www.leecfb.org} and are due to the Farm Bureau office by Feb. 1. Call the Farm Bureau office at 815-857-3531 or email leecfb@comcast.net for more information. • The Lee County Farm Bureau Foundation applications are available at the website {www.leecfb.org}. High school seniors and undergraduate students who are pursuing a degree in agriculture or an agricultural field may apply. Deadline to return applications is Feb. 1. ASON — A variety of nuts is available to purchase at the Farm Bureau office. Call the Farm Bureau office at 309-543-4451 for more information. ERMILION — The annual Illini Farm Toy Show will be from 5 to 9 p.m. Friday, Jan. 7; from 9 a.m. to 5 p.m. Saturday, Jan. 8; and from 9 a.m. to 2 p.m. Sunday, Jan. 9, at the Urbana Holiday Inn. A farm toy consignment live auc-
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IFB reaches all-time-high membership Illinois Farm Bureau achieved the American Farm Bureau Federation (AFBF) membership quota and ended the year with an alltime-high total Leroy Getz membership of 426,043. President Philip Nelson was presented the AFBF Membership Quota jacket at the IFB annual meeting in St. Louis. He will wear it during the AFBF annual meeting next month in Atlanta, Ga. Helping achieve that goal were: • Leroy Getz of Carroll County, who was honored for being the top volunteer membership recruiter for the year.
Hugh Scates
James Gutzmer
He signed up 15 new farmer members. • Gallatin County Farm Bureau President Hugh David Scates, who was presented the top voting quota county award. The county FB manager is Dave Meeker. • Cook County Farm Bureau President James Gutzmer, who was presented the top total quota county award. The county FB manager is Bob Rohrer.
tion will be at 9 a.m. Saturday and a pedal tractor pull will be conducted at noon. Call Alan Chesnut at 217-247-2644 or Kurt Wolken at 217-202-2730 for exhibitor or auction information. AYNE — Farm Bureau will sponsor an ag contracts seminar at 1 p.m. Tuesday, Jan. 25, at the Farm Bureau office. Laura Harmon, Illinois Farm Bureau senior counsel, will discuss farm leases, utility rights-ofway, and mineral rights leases. Call the Farm Bureau office at 618-842-3342 for reservations. Check the website {www.waynecfb.com} for more information. HITE — The annual meeting will be at 10:30 a.m. Saturday, Jan. 15, at the Farm Bureau office. Call the Farm Bureau office at 618382-8512 by Jan. 7 for reservations. The website {www.whitecfb.com/press/an nualmtg.html} has the notice printed. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau office.
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‘Adopted’ senator tours Franklin County mine State Sen. Martin Sandoval (D-Chicago) recently visited his “adopted farmers” in Franklin County and learned about the area’s coal mining industry. The senator, along with Franklin County Farm Bureau President Leon McClerren, board member Ken Bolen, and manager Larry Miller, toured a new underground coal mine and its above-ground facility. The mine is operated by Class M Mining. As part of the tour, the group drove a full-size pickup truck into the mine and traveled 750 feet below ground where a mining machine was extracting coal. Sandoval and the group learned mine operators have the ability to monitor all underground activities, such as the position of all personnel, from a central location. Possible hot spots in the mines also are monitored. The mine is a slope mine
in which a slope is used for workers and materials to enter and exit. A shaft is used only for ventilation and as an emergency escape. As a Cook County native, Sandoval gained new insights about the state’s coal mining industry. This mine is one the most technologically advanced operations in the industry with enhanced safety provisions, personnel tracking, and production efficiency. The senator indicated the tour changed his perspective on coal legislation and made him realize the important role the coal industry plays in Illinois’ economy. Franklin County Farm Bureau leaders look forward to traveling to the senator’s Chicago district again next year.
FarmWeek Page 10 Monday, December 20, 2010
PROFITABILITY
Early fall harvest leads to big plant food volumes BY ROD WELLS
What a difference a year makes! The early harvest this year was a record-breaker for many growers. My fatherin-law shared with me it was the earliest he had completed corn harvest since he began farming some six Rod Wells decades ago. Harvest progress this year was a far cry from the fall of 2009 when most weren’t able to put the combines away until December. They say that no two years are the same, but I can’t recall two back-to-back years being such polar opposites. Crop nutrient applications began in September and movement was steady through fall. In many cases, the early start and lack of a weatherrelated break from favorable application conditions led to delays in resupply reaching terminal warehouses. With many sheds empty coming out of spring, producers struggled to keep up with the open season and strong demand for fertilizer. The favorable field conditions, low supplier inventories, scheduled production plant maintenance, and the early
season combined to make for a very challenging fall. Many dealers felt they had ordered enough product to supply customer needs, only to find that application rates were higher than expected (to replenish the soil from higher yields and to catch up from the lower-than-required nutrient replacement rates from the prior two years) and the number of fertilized acres were higher than initially anticipated. After the dust has some-
BY DANIEL GRANT FarmWeek
An unexpected jump in crop prices, particularly in the second half of the year, provided a significant boost to farm income in 2010. USDA recently forecast U.S. net farm income for the year at $81.6 billion. That would be up 31 percent from 2009 and would be 26 percent higher than the 10-year average of $64.8 billion. “2010 turned out much better than anticipated,” Gary Schnitkey, University of Illinois Extension farm management specialist, said last week during the Illinois Farm Economics Summit in Bloomington. The jump in farm income is due in large part to a surge in crop prices, which rallied to two-year highs prior to har-
Feeder pig prices reported to USDA*
Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $31.89-$48.32 $39.24 $56.00-65.00 $61.51 n/a n/a This Week Last Week 25,732 22,970 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $65.16 $65.53 $50.48 $48.49
Change -0.37 1.99
USDA five-state area slaughter cattle price Steers Heifers
This week $99.11 $98.98
ent results, plant food tonnage across much of the Midwest was impressive, to say the least. One of the big questions for the industry this winter will be the amount of fertilizer required to fulfill spring 2011 grower needs. While application rates were generally higher and some additional acres received fall applications, one of the remaining questions is how much of the traditional spring
business was conducted in the fall due to the favorable conditions. Please stay close to your local FS crop specialist as you build your spring fertility plans. Communication through the supply chain is critical to meeting the needs of tomorrow. Rod Wells is GROWMARK’s director of agronomy sales and operations. His e-mail address is rwells@growmark.com.
Farm income rises in 2010; outlook favorable for 2011
M A R K E T FA C T S
Carcass Live
what settled, the amount of product that found its way to the ground this fall is nothing short of amazing. When compared to the anemic numbers from the fall of 2009, fall 2010 total plant food volumes were more than 75 percent higher. This surge in volume was led by much-needed phosphorus and potash applications that were more than double the previous year. While some localized areas may have experienced differ-
(Thursday’s price) Prv. week Change $100.86 -1.75 $100.98 -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 119.28 118.09 1.19
Lamb prices Not available
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 12-09-10 33.5 18.0 32.0 12-02-10 45.7 21.3 27.3 Last year 62.4 13.3 30.3 Season total 669.8 592.2 473.2 Previous season total 615.5 456.8 469.1 USDA projected total 1570 1250 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
vest and generally have hovered around $12-plus for soybeans and $5 plus for corn. In Illinois, the net farm income for 2010 on farms enrolled in the Farm Business Farm Management (FBFM) program were projected to average in the high-$100,000 range, which would be up considerably from last year’s average of $93,000. Economic results varied around the state, though, as many farmers in Western and Southern Illinois took a yield hit caused by less-favorable weather. The timing of commodity sales and input purchases also added to variability of farm incomes around the state. Schnitkey noted farmers who sold or hedged a large portion of their crops prior to harvest and the price rally had lower incomes
than others who sold more of their crops later in the year. “There’s going to be a lot of variability around that ($100,000-plus income projection),” Schnitkey said. “In general, farm incomes will be low in Western Illinois where yields were significantly below average,” he continued. “Farm incomes will be higher in Northern Illinois where corn yields were near their historical averages.” Looking ahead, the farm income outlook for 2011 also is quite optimistic. If crop prices remain near historically high levels, Schnitkey projected FBFM farms could produce net farm income levels in the low-$200,000 range. Current commodities prices and “indications from futures prices are pretty optimistic for
farm income in 2011,” the farm management specialist said. Farm income next year likely will be pressured, though, by higher input costs. Anhydrous ammonia prices in recent months shot up hundreds of dollars to a current average of $759 per ton. The U of I also projected crop drying costs next year will increase by $10 per acre over this year when crops were extremely dry coming out of the field. “I don’t expect fertilizer prices will come down next year,” said Schnitkey, who noted spring anhydrous prices likely could reach or surpass $800 per ton. Overall, the U of I projected non-land production costs for corn in Central Illinois will jump from $420 per acre in 2010 to $482 per acre next year. At this point, it appears corn still will produce higher returns than soybeans next year in Illinois. The difference could be as much as $100 per acre in all areas of the state except Southern Illinois, where corn returns are projected to average $97 more per acre than beans. For more information, visit the website {www.farmdoc.illinois.edu}.
Analyst bullish on cattle despite larger inventory USDA Friday boosted the inventory of cattle on feed and indicated a trend this year of larger placements in feedlots will continue. The inventory of cattle and calves on feed as of Dec. 1 totaled 11.6 million, up 3 per-
FarmWeekNow.com Listen to analysts’ comments about the latest cattle on feed report at FarmWeekNow.com.
cent from last year. Meanwhile, placements in feedlots (1.96 million, up 6 percent from a year ago) were a little higher than the trade expected, according to Rich Nelson, director of research at Allendale Inc. in McHenry. Placements have been above year-ago levels
eight out of the past nine months. “Supplies appear to be more than adequate (for the first half of 2011),” Nelson said. The trend of higher placements in feedlots suggests “cow/calf producers are liquidating their herds.” The report could have a slightly bearish effect on the cattle market briefly but, overall, Nelson believes cattle prices will remain strong long-term. He predicted there could be a “supply crunch” the second half of 2011. “We feel exports plus a returning U.S. consumer in 2011 will eat up all the additional supply and more,” Nelson said. Beef exports next year could post double-digit gains, accord-
ing to the analyst. “We’re keeping a bullish viewpoint toward prices overall,” Nelson said. Allendale currently is eyeing April futures that could approach $110 per hundredweight. — Daniel Grant
FarmWeek Page 11 Monday, December 20, 2010
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
How much more wheat? The first part of the crop planting mix for 2011 will be released with the January winter wheat planting report. While the winter wheat planting is universally expected to be significantly larger than it was last year, there could be a wide range of expectations going into the report. So far only a few private estimates have surfaced. But the increase has ranged from as little as 2 to 3 million acres to as much as 7 million acres. Still, the general focus seems to be centered around 5 million acres. Again, though, forecasts are limited. A 5.5-million-acre increase would lift plantings back to 2009 levels. That’s approximately the average plantings of the last decade. The mix of plantings may be as important to the trade as the total increase in winter
Basis charts
wheat plantings. A 2.5-millionacre increase in soft red plantings would put acreage back to levels that persisted much of the decade. Hard red winter plantings have been averaging about 2 million more acres than was planted for the 2010 crop. An increase in hard red winter plantings may be more questionable than a big increase in soft red plantings. The latter benefits from the economics of wheat/soybean double-crop plantings, and the economics of that rotation makes it more profitable than competing single crops. Maybe just as important as the USDA estimate itself is the history the pre-report estimates have had relative to the USDA forecast itself. Historically, the pre-report estimates have been about 1.5 million acres larger than the USDA number. In the last 10 years, though, they’ve been only 1 million acres larger on average. Winter wheat acreage has also had a tendency to increase from the first planting estimate. On average, acreage in the last 10 years has increased a half million acres from the January projection to the June acreage estimate. Maybe more important, there was only one year that it declined, 2002, but it declined more than 2 million acres that year. High prices are having similar implications around the rest of the world, too. The International Grains Council sees a 4 percent increase in global plantings this year. If weather is reasonably good, that will lead to increased output and a more comfortable fundamental structure. AgriVisor endorses crop insurance by
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2010 crop: The market’s inability to challenge the $6.05 November high suggests this rally could be coming to an end. This would coincide with the six- to seven-week low anticipated in early January. Use current levels to price remaining bushels you have to sell. It still looks as though hedge-to-arrive (HTA) contracts for winter/spring delivery may be the best marketing tool, but check returns against storage costs. 2011 crop: The gross income per acre offered by current new-crop prices remains very attractive. Use rallies to $5.30 on December futures to make catch-up sales. Fundamentals: Day-today trade remains focused around export business and weather conditions in Argentina. Weekly export sales were neutral coming in within trade expectations at 880,100 metric tons. Argentina recently picked up a light shower, but soil moisture levels remain depleted and the short-term forecast does not look promising.
Soybean Strategy 2010 crop: Even though prices penetrated the $13 resistance in the March contract, it appears as if the market is completing a correction of the November decline. Resistance will be especially tough as it nears $13.50. Use rallies into that price range to wrap-up sales. 2011 crop: New-crop futures, unlike old-crop, posted a weekly reversal down in mid-November. That increases the odds that a key high may have been seen. Use rallies above $12.20 on November 2011 futures to make catch-up sales. Fundamentals: Growing conditions in Argentina remain a key focus as weather forecasters are suggesting yields could drop 15 percent, if conditions do not shift soon. The near-term maps are calling for light showers, but they do not appear to be widespread. Recent export business suggests price levels
are rationing demand, as weekly sales were disappointing at 173,700 metric tons.
Wheat Strategy 2010 crop: It appears the short-term trend in wheat is shifting lower with prices in the March contract slipping below the 10-day moving average. The next significant level of downside support does not come in until the $7.37 region. Use current price levels to wrap up sales if you still have inventories. Because of the big futures carry, HTA contracts for winter/spring
delivery still appear the best tool. 2011 crop: Use rallies to $8 on Chicago July 2011 futures for catch-up sales. If basis is wide on cash contracts, use a HTA contract. Fundamentals: The overall fundamental picture in wheat remains unchanged, as the trade remains uneasy about international growing conditions. Australia is still battling harvest delays and quality issues because of relentless rains. On the flipside, the U.S. Plains remain extremely dry and soil moisture reserves are being depleted.
FarmWeek Page 12 Monday, December 20, 2010
PERSPECTIVES
Oh my!
Beetles, flies, and bees
H
lidays, traditions include a world of plants Hundreds of plants are associated with various holiday traditions, and that’s not counting the ones that are used for food, such as the sugar in sugar cookies, anything dipped in chocolate, and whatever is in mincemeat pie. Poinsettias come to mind, and Christmas trees, too. Everyone seems to have their own favorites. Nowadays we celebrate traditions from so many different customs, we don’t even know from where they came. Take Poinsettias. They are native to Mexico and only have been a symMARI LOEHRLEIN bol of Christmas in the United States since Joel Poinsett, our ambassador to Mexico introduced them to us. Spaniards in Mexico called the plant nochebuena and also used it as a holiday decoration, but earlier than that it was thought to have medicinal qualities by the Aztecs, who called it cuetlaxochitl. Christmas trees hail from the German tradition, as anyone who has ever sung the German version of “O Christmas Tree” can tell you. All of us living in temperate climes understand the desire to bring evergreens indoors during the winter. And this helps explain traditions from England of decking the halls with boughs of holly and the singing of such traditional carols as “The Holly and the Ivy.” The red berries on holly have had symbolic meaning from Roman times that echo in Celtic legend, but they also are attractive, unlike so many plants at this time of year. Some say the Druids regarded holly as a symbol of fertility and eternal life, and even imparted upon it magical powers. The leathery, unusually shaped evergreen leaves just add to their charm. Peppermint and sugar — red and white striped,
and twisted into canes, began as plain sugar and straight sticks, but at some point peppermint was added in the form of red stripes and the sticks obtained a hook. It was said to resemble a shepherd’s hook and was used to tell a Christmas story by a German choirmaster. Nowadays, candy canes are available in many different colors, but they just wouldn’t be the same without their stripes. Red and white — and peppermint — are still the traditional favorites. The straight candy cane with red and white stripes originated in Sweden, and was known as a polkagris. Norse legend is connected to the mistletoe tradition. One thing many people do not realize is that the leaves and berries are hung together, and each time a kiss is exchanged, one of the little white berries must be removed. When all the berries are gone, the free kisses are over, too. Both frankincense and myrrh are resin, or dried sap from trees. They are both aromatic and have been used in perfumes and incense. Frankincense originated in southern Arabia and has been traded on the Arabian Peninsula and in North Africa for more than 5,000 years. Myrrh comes from trees native to Yemen, Somalia, Ethiopia, Israel, Palestine, and Jordan. One little-known fact about myrrh is that it also is known as the “balm of Gilead.” The list goes on and on. Whether it is Yule logs burning bright through the night or sugar plum fairies dancing in our heads, plants from around the world bring us joy and celebration through the darkness of winter, giving closure to the old and ringing in the new, in whatever tradition suits you best. Happy holidays! Mari Loehrlein is a horticulture professor at Western Illinois University’s School of Agriculture, Macomb. Her e-mail address is MM-Loehrlein@wiu.edu.
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Did you ever wonder why insects have the names they do? The answer can be found in a field of study known as etymology — the study of the origin of words. To answer the question of why certain insects have the names that they do, we need to look at the etymology of the word. Let’s start with the etymology of entomology. As is the case with many English words, the origin is found in ancient languages. In both words the “ology” portion comes from the Greek and means the science of. The Greeks used the word entomos, which meant cut into, for insects. That’s because the segmented structure of the creatures made them appear as if cut into pieces. TOM Today the word entomology is used TURPIN for the study of insects. Originally, any insect that could fly was called a fly. That’s based on an Anglo-Saxon word flyge that meant having the ability to pass through the air using wings. Today, though, only insects classified in the order Diptera are scientifically flies. By definition, flies are the two-winged insects that include the familiar house fly, the horse fly, and the deer fly. Many insects other than flies do fly, and some have the word fly in their name. Butterflies, for instance. But butterflies are not Diptera, so technically are not flies. To underscore that fact, butterfly is spelled as one word, not two. The word butterfly is based on the Anglo-Saxon term that indicates a flying insect of the butter season. It seems some of the earliest butterflies were yellow and appeared during the spring when cows and sheep were producing milk that could be used to make butter. So the seasonal appearance and the fact these insects fly are the basis for the name butterfly. Moths are closely related to butterflies. Both groups are classified in the insect order Lepidoptera. So where did the name moth originate? It appears to be based on an Anglo-Saxon word that was first used to describe insect larvae that feed on clothing. Other insects with fly in the name include the dragonfly. These aquatic insects rank with butterflies as being some of the most beautiful insects, but they, too, are not flies. Dragonflies are aerial predators, catching small insects while on the wing. So the fly name is appropriate, but why dragon? No one knows, but a good guess would be that the big eyes, fearsome jaws, and long, narrow body might have been suggestive of dragon-like, monstrous, scaly serpents in mythology. Beetles are the most common type of insect in terms of number of identified species. The word beetle is based on the Anglo-Saxon bitan, meaning to bite. Beetles have mouthparts that they use to chew off pieces of solid food materials, and many can deliver a powerful bite. Bees are known for their buzz, and that buzz is the basis for the name. The word bee is handed down to us from the Old English and meant buzzing. The Latin word for buzzing was bombus, which is a generic name used for some bumble bees. The author Geoffrey Chaucer apparently first used the term bumble for this type of bee. Bumble also meant buzz or boom. So the name bumble bee literally means buzz, buzz! It’s probably not surprising that historical names of insects reflect the behavior of these creatures. To most humans, it is the chewing, buzzing, and fluttering of insects that attract our attention. Tom Turpin is an entomology professor at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.