FarmWeek July 5 2010

THE ILLINOIS COUNCIL on Food and Agricultural Research (C-FAR) will continue but with a new organizational structure. ........3

TRADERS WERE surprised last week when USDA lowered its projection for corn plantings and reduced the supply as well. ............5

JUNE WENT in the books as the second wettest and 10th warmest June on record. The outlook for this month is mixed. ........7

Monday, July 5, 2010

Two sections Volume 38, No. 27

State budget cuts are real, painful

BY KAY SHIPMAN FarmWeek

Black Thursday brought $1.4 billion in state budget cuts over last year’s budget and the possibility of more in the offing.

Anticipated cuts to several agriculture programs occurred when Gov. Pat Quinn signed the new budget for the fiscal year that began July 1.

FarmWeekNow.com See video of Governor Quinn’s budget briefing at FarmWeekNow.com.

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Quinn approved the Illinois Department of Agriculture’s (IDOA) budget, including a lump-sum payment that eliminated funding for several agrelated programs funded through the department but not operated by IDOA. In determining his cuts, Quinn said he focused on actions that would “not hamper or hinder economic recovery ... preserve jobs wherever possible ... making sure education is protected.”

But schools districts already had received bad news earlier in the week when the Illinois State Board of Education informed them the state

didn’t have enough money to pay the final quarter for mandated categorical services, such as special education.

Quinn pointed out the new budget continues the per-pupil funding level of $6,119. But he eliminated $16 million in holdharmless funding that specifies no district will receive less state aid than it did in 1997-98. Quinn also cut $70.5 million in grants, which eliminated the $3.04 million in the ag education line item.

“Based on the governor’s and his budget director’s comments, the state remains far from digging itself out of this financial crisis,” said Kevin Semlow, Illinois Farm Bureau director of state legislation.

The governor directed state agencies to take several acrossthe-board cost-cutting measures on everything from office rentals and travel to overtime pay and printing services.

David Vaught, the governor’s budget director, said the administration will be working with each agency on its proposed cuts and emergency budget reserves.

The newly signed emer-

gency budget act gave the governor the authority to hold back funding reserves and transfer money within the budget. Vaught estimated the agencies will complete those

steps by the end of July.

“We will continue to work with the Illinois Department of Agriculture and other ag programs and key budget decision makers about the impact of fur-

ther cuts and emergency budget transfers,” Semlow said.

The budget cuts “were not easy,” Quinn said, “but necessary, and we have tightened our belts again and again.”

COUNTY FAIR FOCUS

Kaleb Eberole, 15, right, of Milledgeville in Carroll County, and his 18-year-old cousin, Brett Eberole, second from right, of Lanark show senior Southdown rams at the recent Henry County Fair in Cambridge. County fair season is under way across the state and will continue through late August. (Photo

by Ken Kashian)

Cuba trade reforms clear Ag Committee

BY MARTIN ROSS FarmWeek

Two Illinois congressmen have helped move U.S. producers “one huge step forward” in realizing the full potential of the Cuban market, according to a Washington advocate of expanded U.S.-Cuban trade.

The House Ag Committee, whose members include Crete Democrat Rep. Deb Halvorson and Urbana Republican Tim Johnson, last week approved the Travel Restriction Reform and Export Enhancement Act, sponsored by Ag Committee Chairman Collin Peterson (DMinn.) and Rep. Jerry Moran (R-Kan.).

The bill would eliminate several restrictions on ag exports to Cuba and modify travel and other longstanding policies that hinder sales to the small Communist nation a mere 90 miles offshore.

A Texas A&M University study indicates the bill could result in up to $365 million in added U.S. sales. Committee approval “takes us one step closer to placing Ameri-

can-grown food on the tables of the Cuban people,” American Farm Bureau Federation President Bob Stallman said.

The measure is assigned as well to House Foreign Affairs and Financial Service committees, but Latin American Working Group Cuba specialist Mavis Anderson notes committee chairs could opt to send it to the House floor without further votes, based on the Ag Committee’s action. She sees growing support for Cuban reform, calling Halvorson and Johnson’s cooperation “a small sample of what bipartisan support can do.”

“It’s also the work of the ag community and grassroots activists,” Anderson told FarmWeek. “Their work was just undeniably effective in this process and in this success.

“I send kudos to the Farm Bureau, the Farmers Union, the hundreds of thousands of activists around the country who took action in support of this bill. This is not a conservative vs. liberal or a Republi-

FarmWeek on the web: FarmWeekNow.com

can vs. Democrat issue — it’s an issue that’s right for Americans.”

The bill would enable Cuban buyers to send payment for ag goods directly to producers’ banks, rather than having to rely on third-party intermediaries to handle financing.

It would define cash-in-advance payment for U.S. goods as receipt of payment before goods are off-loaded in Cuba, vs. burdensome current requirements for payment prior to shipment.

Resistance remains strong among some Florida lawmakers with Cuban-American constituents: Tom Rooney (R-Fla.), a new Ag Committee member, argued “every dollar spent by American tourists in Cuba would contribute to the regime’s bottom line.”

Peterson instead sees his measure as part of a “strategy of engagement” with Castro’s Cuba, and Anderson maintains the majority of Cuban-Americans favor normal relations.

Illinois Farm Bureau®on the web: www.ilfb.org

FarmWeek Page 2 Monday, July 5, 2010

ENERGY

Quick Takes FUTUREGEN DEADLINE EXTENDED — The U.S. Department of Energy has extended a deadline to work out a deal to build the long-delayed FutureGen coal power plant/carbon sequestration facility at Mattoon.

The agency said an agreement that expired this week between it and the FutureGen Alliance to work out financial and other details has been extended by 60 days.

The agreement was signed about a year ago and requires the FutureGen Alliance — a group of coal companies and others trying to build the plant — to find ways to cut costs before the Energy Department gives it final approval for the Illinois plant and provides about $1 billion in funding.

IMMIGRATION REBOOT? — President Obama last week revived proposals aimed at “normalizing” illegal immigrants and possibly setting the stage to resolve ag guest labor concer ns. T he president attempted to strike a middle road between staunch border security advocates and supporters of amnesty for undocumented workers.

“Ultimately, our nation, like all nations, has the right and obligation to control its borders and set laws for residency and citizenship,” he said. “And no matter how decent they are, no matter their reasons, the 11 million who broke these laws should be held accountable.

“Now, if the majority of Americans are skeptical of a blanket amnesty, they are also skeptical that it is possible to round up and deport 11 million people.”

American Farm Bureau Federation labor specialist Ron Gaskill is skeptical immigration reforms will come about any time soon, despite reports that lawmakers may work to “marry” two relatively popular proposals.

“I don’t think the (political) calculus has changed enough to make it go,” he told FarmWeek.

C E N T R A L I L L I N O I S B R OA D B A N D — AT&T last week announced it is offering the third generation (3G) mobile broadband network in Central Illinois. The network also has been enhanced along major roadways, including I-55 between Elkhart, Lincoln, and Atlanta; along I-72 and Old Route 36 from Decatur into Sangamon County; and U.S. 51 from Macon to Heyworth.

The additional 3G sites build on AT&T’s Central Illinois expansions in Champaign, Bloomington, Normal, Peoria, and Springfield.

The governor recently signed a new state telecommunications law created to attract private sector investment in broadband and wireless technology.

(ISSN0197-6680) Vol. 38 No. 27

July 5, 2010

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Renewable coalition: ‘Unstable’ policies, delays stunt growth

BY MARTIN ROSS FarmWeek

Diverse energy interests joined last week to seek a renewables agenda in forthcoming energy legislation while offering a few sharp words about ongoing policy challenges.

25X’25, a national coalition seeking 25 percent ag/forestbased domestic renewable energy use by 2025, drummed home the need for expanded biofuels, biomass, wind, geothermal, hydropower, and solar development.

Citing a new report, Meeting the 25x’25 Goal: A Progress Report, 25X’25’s national steering committee Co-Chairman Read Smith noted, “We are making progress in some very difficult times.” Nearly 8.3 percent of U.S.-consumed energy came from renewable sources at the end of 2009, he said.

But Smith stressed, “We still need to keep our shoulder to the wind and work harder.” Former Sen. Thomas Daschle is leading “clean energy” industries in urging the White House and U.S. Senate leadership to take urgent action on energy legislation following Congress’ July 4 recess.

Sen. Richard Lugar (R-Ind.) is promoting a measure that would encourage diversification of both existing fossil fuel and renewable fuel/power alternatives. Tom Buis, who heads the ethanol industry group Growth Energy, emphasized “one really key component” of the Lugar bill: phased-in mandatory “flexfuel” capabilities for new vehicles sold in the U.S. That would spur accelerated E85 (85 percent ethanol gasoline) infrastructure development and use. In Buis’ view, that is a move “vitally important as our nation moves forward.”

He criticized delays in U.S. Environmental Protection Agency (EPA) approval for use of E15 blends. EPA was expected to rule on a 2009 “mid-level” blend waiver request in December, but U.S. Energy Department data deemed necessary to clear intermediate blends has lagged and small engine manufacturers continue to challenge the waiver.

“If we’re going to meet (federal renewable fuels standard) mandates of 36 billion gallons by

Growers hit D.C. airwaves with pro-ethanol message As oil continues to spread through Gulf waters, corn growers again are taking to the air in the D.C. Beltway.

The National Corn Growers Association (NCGA) has unveiled a new TV ad notifying Washington policymakers that “now is the time” for ethanol. The ad, airing on local news programs and cable news outlets including Fox, CNN, and MSNBC, features images of the BP oil spill, sunlit cornfields, and a motorist pumping E85 (85 percent gasoline.)

Despite an administration push for renewable energy development (see accompanying story), interests ranging from the food retail and petroleum industry to key livestock groups have challenged extension of a soon-to-expire federal ethanol blenders credit and other incentives for corn and, ultimately, cellulosic ethanol production and use.

According to the checkoff-funded ad, “It’s clear that events both here at home and abroad demand a different solution to our energy needs — one that protects our national security, safeguards our environment, and promotes economic growth.

“One answer grows in our own backyard, turning American corn into America’s energy,” the ad states. “It’s renewable, abundant, and safe. And it creates American jobs. We can feed the world; we can fuel it, too. Ethanol.”

The ad is one of several now targeting D.C. policy and opinion leaders.

The ethanol industry coalition Growth Energy has been running a series of TV ads recently updated to reflect concerns about the oil spill. “No beaches have been closed due to ethanol spills,” notes one of the series, which also touts ethanol’s economic and energy security benefits.

Illinois Corn Growers Association President Tim Lenz believes targeting the nation’s capital is a more effective and prudent use of corn growers’ “limited budget in comparison to, say, Big Oil or grocery manufacturers.”

“We can’t have a general, broad campaign across the nation,” Lenz told FarmWeek. “We’re trying to educate them in other less expensive ways — (on-line) social media, responding in newspaper op-ed articles.

“We’re trying to reach the decision makers and maybe their 23-year-old staffers, who actually do a lot of the governance in our country. We’re trying to pinpoint the decision makers and the decision makers’ decision makers.”

2022, we’re eventually going to have to have an approval process basically around E25 to E27,” Buis told FarmWeek. “Continuing to go through this process has been very, very difficult.

“We have a lot of critics and a lot of reasons why they don’t want to see this move forward.

The build-out of flex-fuel vehicles as Senator Lugar is advocating, combined with (ethanol) blender pumps that let the consumer have a choice at every retail gas station gets us beyond all this argument about whether or not your weed-eater’s going to conk out.”

Meanwhile, Denise Bode, CEO of the American Wind Energy Association (AWEA), warned “our industry is at a crossroads,” with businesses and investors “watching to see if the U.S. passes legislation supporting renewable energy.”

AWEA and others in the Daschle coalition seek “robust and predictable” tax and financial incentives; a “strong” Renewable Electricity Standard; and renewable energy infrastructure provisions to ensure alternative energy delivery.

Joining with Buis last week, AWEA Vice President Rob Gramlich Sr. decried “unstable policies” that require extension of key tax credits on an annual basis. The Senate failed again last week to extend an expired biodiesel blenders credit; a similar ethanol credit expires Dec. 31.

“It’s not all rosy for any of our industries,” Gramlich said.

“The uncertainty created by the policy environment has utilities reluctant to sign a 20-plus-year (power) contract or build the facilities in wind energy they were building over the past couple of years.”

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, Aug. 18, 5:30

p.m., Sangamon County, Sangamon County Farm Bureau, 2631 Beechler Court, Springfield.

• Monday, Aug. 30, 11 a.m., Effingham County, 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.

FarmWeek Page 3 Monday, July 5, 2010

STATE

C-FAR retains mission, but changes structure of Agriculture (IDOA) had borne most of the budget cuts over the past three to four years, The Illinois Council on Food and Agricultur- sparing groups, such as C-FAR, whose individal Research (C-FAR) remains committed to rais- ual budgets are part of the budget for IDOA. ing research dollars, but it will do so with a new Those groups, frequently referred to as passorganizational structure. throughs, receive funding under IDOA’s budget Last week, C-FAR members approved but are not controlled by the state agency. sweeping bylaw changes to organize the “I made a mistake in not cutting the passresearch support group around the state’s major throughs more over time. IDOA bore the agricultural sectors. C-FAR members face a sec- majority of the cost-cutting measures,” Jenond fiscal year of zero state funding. nings said. Now, IDOA can no longer shield “We can’t promise more money ... but when the pass-throughs from severe cuts, he added. state’s economy is replenished, we want to be in For C-FAR, two years of zero funding is a a strong position to explain the importance of long way from the peak of $15 million a year it food and agricultural research,” said John Husreceived for three years. It began in 1993 as a ton, chairman of a special task force and a new coalition with no dollars and an idea to retired executive with the National raise funds to support research. The Cattlemen’s Beef Association. group was led by the late Len Gardner, In December, C-FAR members who had recently retired as the executive voted to change the structure and director of the Illinois Farm Bureau how research priorities are governmental affairs division. determined.

Under C-FAR’s new structure, C-FAR expects to close its state four caucuses will determine research priorioffice, located at the University ties. They will represent corn, soybeans, porkof Illinois, Urbanabeef-dairy, and specialty Champaign, and to crops-wheat-allied indusrelease the remaintry. ing staff sometime Each caucus will elect in the fall, representatives to reported Jim serve on the CCharlesworth, FAR board, and ‘I believe if C-FAR is to be success- one board memC-FAR chairman and ful, we need to be accountable to ber will represent GROWMARK the state’s largest agriculture and work together.’ marketing general farm research direcorganization.

— John Huston tor.

Organizational special task force chairman Given the members will be state’s current limited to two dire financial voting caucus repoutlook, the C-FAR board decided “it was inap- resentatives but may name representatives to propriate to renew the funding request” and serve on every caucus, Huston said. instead will regroup when the state’s economy Huston reassured members the new caucus improves, Charlesworth explained. structure doesn’t mean important research topIllinois Agriculture Director Tom Jennings ics will be forgotten. For example, the soybean gave additional credibility to the board’s assessindustry is interested in and funds research ment. related to nutrition, Huston noted.

“Hard cuts are in order. We have no choice,” “I believe if C-FAR is to be successful, we Jennings told C-FAR members. need to be accountable to agriculture and work Jennings explained the Illinois Department together,” Huston concluded.

BY KAY SHIPMAN FarmWeek

Illinois broadband project awarded $7.4 million Southern Illinois represented Illinois in last week’s round of rural broadband projects selected for federal funding.

Shawnee Telephone Co., which has offices in Hardin and Gallatin counties, will receive $7.4 million in a grant-loan combination from USDA. Shawnee’s Fiber-to-the-Home project was one of 37 selected nationwide.

Secretary of Agriculture Tom Vilsack noted the $390.9 federal funding awarded nationwide will leverage another $21.9 million in private investments.

“Many of these projects are shovel ready ... and will provide real-time information to farmers and ranchers,” Vilsack told reporters during a teleconference Friday.

The projects also will help small rural businesses expand marketing opportunities, allow rural schools to offer distance-learning courses, and give rural doctors and hospitals access to telemedicine.

To date, USDA has awarded $1.458 billion for 105 broadband projects in 37 states and one territory.

Shawnee Telephone will receive a $6.25 million loan and a $1.103 million grant. The project includes $1 million in private funding.

The new fiber-to-the-home network will provide high-speed Internet to homes, businesses, and community institutions, such as public schools, libraries, law enforcement offices, and medical facilities. — Kay Shipman

On-farm fuel, oil storage plans needed by Nov. 10 The U.S. Environmental Protection Agency (EPA) recently finalized its Spill Prevention, Control and Countermeasures (SPCC) rule that governs oil and fuel storage for many businesses, including farms.

Nov. 10 is the deadline for farms to comply with the new rules. During the winter, EPA indicated it may extend the compliance date, but that was before the oil spill in the Gulf of Mexico, according to Nancy Erickson, Illinois Farm Bureau director of environmental resources.

“At this point, it is unknown whether the date will ever be extended. Therefore, Nov. 10, 2010, remains the compliance date for farms,” she said.

The SPCC rule pertains to farms that have above-ground oil storage with an aggregate capacity greater than 1,320 gallons or completely buried storage capacity of more than 42,000 gallons. Residential home oil containers and oil tanks smaller than 55 gallons are exempt.

EPA also has proposed to exempt milk tanks under certain circumstances, but that exemption has not been finalized, Erickson said. Currently, milk containers must be added into the aggregate oil capacity calculation.

EPA modified the proposed rules, and in some respects, attempted to address concerns raised by IFB, American Farm Bureau Federation, and other agricultural groups.

The rules require farms that meet a certain storage threshold to prepare and implement a

plan and have a secondary containment structure around their tanks.

Under the rules, there are difference compliance requirements based on a facility’s storage capacity.

For smaller-capacity facilities with an aggregate storage capacity of 10,000 or fewer gallons, EPA has two categories.

To qualify, the smaller facilities must not have had a single discharge of more than 1,000 gallons into navigable waters within the three years prior to the date the SPCC is certified.

The farm also cannot have had two oil discharges of more than 42 gallons into navigable water within a 12-month period.

In addition to meeting the spill history requirement, smaller-capacity facilities must have 10,000 or fewer gallons of aggregate storage and cannot have any single above-ground storage container with capacity for more than 5,000 gallons.

Facilities that meet the smaller-capacity category may use an EPA plan template and self-certify their plan. They do not have to have a plan certified by professional engineer.

Facilities that have 10,000 or fewer gallons of aggregate storage and a single tank of more than 5,000 gallons would fall into a second-tier category.

They also may self-certify a plan, but it would not be an EPA template plan.

Facilities with more 10,000gallon storage capacity must have a plan approved by a professional engineer.

Additional information is available online at: • SPCC plan template for smaller-capacity facilities {http://www.epa.gov/emerge ncies/content/spcc/tier1temp. htm}. — Kay Shipman

DISTRICT OFFICE CHAT

Piatt County Farm Bureau Vice President Terry Lieb, left, chats with his county’s “adopted legislator,” state Rep. Karen May (D-Highland Park), during a recent visit to her Highwood district office. Lieb was joined by other leaders from Cook, Lake, and Piatt County Farm Bureaus. The group talked about the state budget and state pension reform and the potential for an exchange between Piatt County residents and those from May’s suburban district. (Photo by Bona Heinsohn, Cook County Farm Bureau)

FarmWeek Page 4 Monday, July 5, 2010

GOVERNMENT

U.S.-South Korea FTA prospects brighten

BY MARTIN ROSS FarmWeek

Frustration permeates Washington: Ag groups fret over stalled trade agreements, labor interests challenge trade expansion, and the president tries to please both even as Canada moves aggressively to improve its own trade situation.

Washington trade analysts urged policymakers to channel their frustrations into action, rather than retaliation.

During a meeting of the major G-20 nations in Toronto, President Obama and South Korean President Lee Myungbak announced plans to set a deadline for removing remaining obstacles to a U.S.-Korea free trade agreement (FTA) and seek congressional FTA approval in 2011.

FTAs with Panama and

Colombia also are awaiting Capitol Hill action.

The president indicated he wants to negotiate a deal by a November G-20 meeting in Seoul. Dean Kleckner, who heads the group Truth about Trade and Technology, is encouraged by Obama’s pledge, “if he follows through with it.”

At the same time, trade consultant Paul Drazek sees Obama’s G20 missive on U.S. imports sending potentially contradictory signals. The president warned “no nation should assume its path to prosperity is simply paved with exports to the United States” — a message that could be viewed as arguing the U.S. market is “as open as (it) can be,” he said.

The U.S., however, continues to impose high import tariffs on

some foreign goods, and trade partners “are going to expect us to step forward if we’re going to expect them to open their markets,” Drazek maintained.

Kleckner admonished against a “knee-jerk” reaction to Korea granting access to Canada or the European Union before a U.S. accord is reached, noting “I can’t think of a time when we’ve blackjacked or bludgeoned trade out of anyone.”

“If (Obama) was thinking we’re going to become more protectionist, clearly that’s very worrisome,” Drazek said.

“We’ve been through this in the past. Protectionism has taken the forefront and has come back to bite us big time. You can’t export if you don’t import.

“If he was saying other countries have to open their markets, and that with econom-

ic growth in the U.S. what it is, we can’t be expected to import as much, well, that’s just sort of an economic fact of life.”

Challenges to the U.S.-Korea FTA include South Korean barriers to U.S. cars and beef imports. Drazek believes the administration could negotiate separate side agreements on automobiles and beef to “sell” the existing FTA to Congress.

Meanwhile, the Canadian senate last month approved an FTA with Colombia. According to the National Pork Producers Council, that ensures an immediate market advantage for Canadian pork.

Without its own FTA, the U.S. will be completely shut out of the Colombian pork market within 10 years, Iowa State University economist Dermot Hayes warned.

In a second June deal, China will allow Canadian beef imports, initially from cattle under 30 months of age. Drazek fears Canada’s concession to disputed Chinese restrictions could undermine U.S. efforts to open Korea to all beef.

“We’re going to start losing our export market (in Colombia),” he predicted. “If that doesn’t capture the attention of Congress, particularly congressmen in rural areas, I don’t know what will.

“And I would think the administration has to be very, very annoyed with Canada for cutting a deal (with China) that’s clearly not consistent with international animal health standards. Canada moving ahead on this, accepting China’s limits on beef imports, is a money grab,” said Drazek.

ICGA VP: New agreement bad policy for growers?

Planned changes in the federal government’s contract with crop insurers could affect corn growers’ as well as corporate bottom lines, Illinois Corn Growers Association (ICGA) Vice President Jim Reed warned last week.

Companies have until July 12 to sign a new standard reinsurance agreement (SRA) contract with USDA’s Risk Management Agency (RMA). The

agreement includes a $6 billion, 10-year reduction in administrative and related funding for carrying federal crop insurance.

Under the SRA, RMA plans to redistribute 1.5 percent of annual underwriting gains (policy profits) from insurers in Illinois and other key Corn Belt states to 17 so-called “underserved” states.

According to a Texas A&M study of state returns per dollar

of producer premiums paid into the program, some Midwest regions already “are to some extent subsidizing other areas of the country,” Reed said.

A&M economist Joshua Woodard told ICGA leaders federal law prescribes an average 1-to-1 return but identified a large pocket across the U.S. where loss ratios consistently fall below that rate.

Fortunate

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For the upcoming calendar, we are again asking our clients and friends to submit images of life in rural America. Selected images will appear in the 2011 calendar. Deadline for submission is August 31.

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“Every farmer should get a fair shake,” he said. “That’s across states, across crops, nationally, whatever. The program is supposed to be fair for all producers.”

Further, Reed is concerned potential reductions in crop insurance services, staff resources, or even local agent presence related to lower reimbursements and caps on underwriting gains and agent commissions could have an impact on growers working to finetune their risk management.

Insurers and producers face a key information-education challenge over the next several months as RMA moves to a new revenue “combo” product melding crop revenue coverage (CRC), revenue assurance (RA), income protection policies, and yield-based policies into a single offering. Combo policies will be marketed to wheat growers this fall and to

corn and soybean growers in 2011.

“The delivery system we have now seems to work pretty well,” Reed told FarmWeek.

“As new products come to market, there’s always a learning curve for producers as they try to understand what the new product is, what the ins and outs are — to get comfortable before they make that really big decision about what they’re going to go with next year.

“That’s probably going to be a little more important going into next year with the new combo policy. There are aspects of this people aren’t going to understand, especially if they’ve had CRC, since it looks like it’s modeled a little more closely on RA. “In the end, it should be all about the producer — having available products and a delivery system they’re comfortable with.” — Martin Ross

Illinois-based manufacturer to buy specialty starch firm Corn Products International Inc., based in Westchester, last week announced it will buy National Starch, a New Jerseybased global provider of specialty starches. This will expand Corn Products’ markets in Europe and Asia.

Corn Products is a global producer of dextrose and a major regional producer of starches, sweeteners, and other ingredients. It has 8,000 employees and operations in 13 countries at 28 plants. Last year, the company reported net sales of $3.67 billion.

National Starch is an innovator in food ingredients and specialty starches. In 2009, it had revenues of $1.2 billion from sales of specialty starches to both local and multi-national customers in the food, papermaking, consumer, and industrial sectors. It has 2,250 employees around the world and operates 11 plants in eight countries.

National Starch develops specialty and modified starches — two of the ingredient solutions that Corn Products’ executives identified as important to the Illinois firm’s growth.

FarmWeek Page 5 Monday, July 5, 2010

PRODUCTION

Mild weather just in time for struggling crops

BY DANIEL GRANT FarmWeek

If the current state of the Illinois corn crop could be described in terms of a spaghetti western, it certainly would be the 1966 classic “The Good, the Bad, and the Ugly.”

Some fields that were planted in April last week were tasseling and have excellent yield potential.

However, “the ugly parts of fields for the most part are still ugly,” said Emerson Nafziger, University of Illinois Extension crop systems specialist.

Fortunately, all crops were aided last week by mild weath-

er after a wet and wild June.

“We’ve seen a nice recovery in crop color,” Nafziger said.

“The cool temperatures and sunshine are almost exactly what it needed.”

Overall, the corn crop is growing at a rapid pace (see

graph). The average height of the crop as of the first of last week (56 inches) was more than twice the average height of the crop at the same time last year (27 inches).

“Despite more than nine inches of rain in June, our July crop prospects are improving,” said Brian Schaumburg, a FarmWeek CropWatcher from McLean County.

“Color is returning to the soybeans and corn is pollinating in almost ideal conditions.”

Fifteen percent of the crop last week was silking compared

to 2 percent last year. Nafziger projected as much as half of the crop will be silking this week.

“The crop pollinating now has good color and very good potential,” he said. “But (due to shallow root systems) we’re probably vulnerable to periods of hot, dry weather.”

Nafziger said there still is time to apply nitrogen to cornfields that are a little behind.

However, corn that is short and yellow likely has lost a large portion of its yield potential, he said.

“Corn can still respond strongly to nitrogen fertilizer through the V12 stage — about shoulder high — if it is healthy,” said Jim Camberato, a soil fertility specialist at Purdue University. “The capacity to respond to added nitrogen diminishes from then until

silking, with little potential for response during grain filling.”

The condition of the corn crop in Illinois last week was rated 67 percent good to excellent, 23 percent fair, and 10 percent poor or very poor.

Meanwhile, a handful of farmers last week planted soybeans as 6 percent of the crop was not in the ground as of one week ago, according to the National Agricultural Statistics Service Illinois field office.

Some farmers in Western Illinois even had to plant soybeans via aerial applications due to wet soils, reported Ken Reinhardt, a CropWatcher from Mercer County.

The condition of the state’s soybean crop last week was rated 62 percent good to excellent, 27 percent fair, and 11 percent poor or very poor.

Corn market supported by cuts to acres, ending stocks USDA last week surprised many traders when it lowered its estimate of corn plantings nationwide from the 88.8 million acres predicted in March to a current estimate of 87.9 million acres.

The quarterly stocks estimates of 4.31 billion bushels for corn and 571 million bushels for soybeans also were well below trade estimates.

“There is no question this report is a game-changer of how the trade approaches the market going forward,” market analyst Greg Wagner said last week during a teleconference hosted by the CME Group.

The corn acreage estimate was about 1.5 million acres below the average trade guess, equivalent to about 240 million bushels, while the corn stocks number as of June 1 was about 300 million

bushels below trade estimates, according to Dale Durchholz, AgriVisor market analyst.

“The corn numbers were shockers (and prices last Wednesday immediately went limit-up),” Durchholz told FarmWeek. “It (last week’s acreage and stocks report) erased about half a billion bushels of corn compared to what people thought were out there.”

The reduction in corn acres was due in part to weather challenges in the second half of the planting season. Meanwhile, the dip in ending stocks reflects the poor quality of last year’s crop, according to the analysts.

One bushel of corn typically weighs 56 pounds, but if test weights last year averaged 51 pounds, then each bushel would provide 10 percent less energy to convert it into ethanol or

pounds on livestock. “It tends to verify the quality issues last year lifted demand in terms of bushels,” Durchholz said.

Meanwhile, USDA last week raised its estimate for soybean plantings from 78.1 million acres in March to a current record of 78.9 million acres.

But lower ending stocks, possible weather challenges this season, and the fact that about 2.5 million acres of soybeans were not planted as of last week could help support bean prices, according to Durchholz.

“This market will be more

sensitive to any weather threats that may develop,” Wagner said.

Illinois farmers bucked the national trends in the June acreage report. USDA reported Illinois farmers this season planted more corn, 12.6 million acres compared to 12 million last year, and fewer beans, 9.3 million acres compared to 9.4 million last year.

The USDA estimate of planted wheat acres also could help remove a burdensome supply from that market. USDA projected all U.S. wheat acres this year (54.3 million) are down 8 percent and are at the lowest

level since 1971. Winter wheat acres were projected at 37.7 million acres, down 13 percent from last year.

In Illinois, farmers last fall planted just 350,000 acres of winter wheat compared to 850,000 the previous year.

“We still have a huge (global) supply of wheat, but at least we’re trimming back and it’s a little less burdensome,” said Durchholz, who noted wheat supplies in Russia and the Ukraine also are expected to contract this year. — Daniel Grant

Majority of wheat in the bin The recent stretch of optimal weather has allowed Illinois wheat growers to harvest the majority of their crop.

Wheat growers from June 21 to June 28 harvested 44 percent of the crop statewide and as of the first of last week 64 percent of the crop was in the bin, the National Agricultural Statistics Service Illinois field office reported.

The harvest pace as of last week was well ahead of the same date last year when harvest was just 40 percent complete. Wheat harvest last week also was 7 percent ahead of the five-year average pace (57 percent).

“Wheat harvest is done in my area,” John Brink, a wheat grower from Richview and president of the Illinois Wheat Association, told FarmWeek last week.

Of course, the job of harvesting wheat this year was much smaller than normal. Illinois growers last year planted about one-third the acres (350,000) as they did the previous year.

“It was a pretty short wheat harvest,” Brink said.

Brink estimated yields in his area ranged from 50 to 70 bushels per acre. Test weights ranged anywhere from 54 to 61 pounds per bushel.

“Yields were a little below average but a little better than we expected,” Brink said. “The quality was a little better this year.”

Brink hopes the improved quality of the wheat crop this year compared to last year combined with a more “normal” time frame for corn and soybean harvest will encourage Illinois growers to plant more wheat this fall. — Daniel Grant

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FarmWeek Page 6 Monday, July 5, 2010

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Excellent weather for the week with a break from all the rain we have had the previous two to three weeks. We did have 1.8 inches of rain last weekend (June 2627), but it didn’t rain all last week and this is what everyone was waiting for to cut hay. Almost all of the second cutting of hay was made in excellent condition. For the month we had just under 8 inches of rain at our farm, but the southwest part of the county had more than 9 inches, and the southeast corner had less than 6 inches. The corn really shot up last week with lots of it over our head. The tassels haven’t opened up yet but are very close. Most of the beans are over knee high with lots of flowers coming on, but we still have areas of yellow beans in the wet spots.

We finally got a USDA report that helped our markets.

Pete Tekampe, Grayslake, Lake County: A beautiful week in Lake County. Got almost 2 inches of rain last weekend (June 26-27) and the temperatures in the mid-70s for most of the week. They are calling for scattered showers three of the next seven days. Early corn is head high and close to tasseling, but most of the corn is waist- to shoulderhigh and has a dark, green color. Early 30inch beans have shaded the rows and are looking great. Later beans are from just sprouting to 10 inches high. Winter wheat is turning fast and could be cut this week.

Some hay has been cut and baled. Spring grains are all headed out. Hopefully everyone had a safe Fourth of July.

Leroy Getz, Savanna, Carroll County: Rain on June 26 and 27 totaled 2.4 inches with the hardest coming on Sunday morning that washed out flood gates in our pasture. June total is 10.5 inches. Corn and beans continue to be ahead of average with some corn tasseling and some beans flowering. Spraying of beans continues. There is some corn borer damage evident in the roughage corn. Hay making was great for the week with dry and sunny days.

The rye on the sand areas has been combined and the straw has been baled. I hope everyone had a safe Fourth of July.

Ron Frieders, Waterman, DeKalb County: A welcome reprieve from all of the wet weather is letting folks play catch-up.

Sprayers are running full speed in the beans. Combines are starting in the wheat and hay is being baled. Corn is starting to tassel, but it is extremely variable in every field. Lots of drowned out and stunted corn from this year’s rain and last year’s compaction. Soybeans, too, are suffering. Low ground is gone and in the surrounding ground the beans are yellow from wet feet. I’ll hopefully have a report on wheat yields next week. Hope everyone had a pleasant Fourth of July.

Larry Hummel, Dixon, Lee County: Beautiful weather for the week. Cool nights to run the fans on grain bins and dry weather to catch up on spraying.

Second-cutting hay is already in storage. A lot of soybean fields look very uneven in height from soils that have just been too wet for healthy plant growth. Corn is starting to tassel, so planes should be starting to move in shortly for spraying fungicide.

The corn and soybeans that were hailed on a week and a half ago have put out some new leaves and are trying to make the most out of a bad situation. Insurance adjusters are in no hurry to get into those fields so they can see how well the plants are recovering from the damage.

Ken Reinhardt, Seaton, Mercer County: We had a nice dry spell, the longest since mid-April.

Hay was finally made successfully. A few beans were flown on, but a half dozen soybean fields within sight of ground I farm were planted the first time by week’s end. Some fields had Roundup flown on, but sprayers are able to run most places now. The first corn is silking and the airport is full of spray planes waiting to apply fungicide.

Joe Zumwalt, Warsaw, Hancock County: At last a pleasant week. Fieldwork, sprayers, mowers, shredders, and planters were all in full swing as we welcomed in the first of July. Some are trying to finish up their soybeans, while others have taken prevented planting. Last week was just what the crops have been crying for since the first of May, but for many corn and soybeans fields, it’s too late.

It seems that everyone is playing catch-up.

Rain is in the forecast, and I think it will be welcome since with all of the shallow roots, we are going to need adequate rainfall all summer long. Several have even turned on their irrigation systems. Hope everyone had a safe and happy holiday.

Ron Moore, Roseville, Warren County: Last week was the first one in two months that I could report no rain. Mowers, balers, and sprayers were seen every day last week. The corn crop here still looks very poor in some areas. There is still some water standing in some fields.

This is not anywhere close to an average crop for this area. Some of the corn is starting to tassel on the rolling ground. The low wet spots will not tassel for another week or two. The beans are finally looking better.

The wet areas are still stunted and far behind in development. No reports of any insect pressure or disease yet. Most of the hay has been baled at this point.

Jacob Streitmatter, Princeville, Peoria County: A week has gone by and there has been basically no rain to speak of. This “drought” period has allowed a lot of spraying to take place and let guys finish soybean planting. I was able to get my soybeans in and get my spraying caught up by the Fourth of July. If my third replant is a charm, I beat last year’s replanting date of July 4. The hot weather has pushed the corn crop along and the first-planted corn is beginning to tassel. Another week or so, there will be a lot of corn in full bloom.

Mark Kerber, Chatsworth, Livingston County: A dry week!

Everyday gets drier as we can spray beans, mow roads, and bale waterways and hay without getting stuck. It’s amazing how fast the ground dries up in the summer. Will it transition from too wet to too dry? Corn tassels are emerging along with silks. Maybe the corn will pollinate before Japanese and rootworm beetles cause problems. Sweet corn is really looking good. We won’t need to spray that for beetles this year. Soybeans are at different stages of growth depending on planting date and drainage. Some are replanting the replant on the poorer soils. Wonder if Federal Crop will pay again to replant? We still can’t get over how all of the Sonic-Authority worked on weeds and volunteer corn. What a year to apply this early herbicide. It was nice to see a bullish USDA report last week. Better sell that old crop — how many rallies do you see after the Fourth of July?

Ron Haase, Gilman, Iroquois County: We had 0.05 to 0.25 of an inch of rain on June 27. For the month of June I received a range of 4.7 to 7.6 inches on our farms. With the soils drying out, farmers were applying herbicides on their soybean fields and there were some cornfields that needed an application as well. Corn in the local area is anywhere from the V9 to the R1 or the silking growth stage. Tassels began to emerge in some fields on June 28. Area soybean fields are anywhere from V3 to the R2 growth stage. Local closing prices for July 1: nearby corn, $3.43; new-crop corn, $3.47; nearby soybeans, $9.44; new-crop soybeans, $8.67.

Brian Schaumburg, Chenoa, McLean County: Despite more than 9 inches of rain in June, our July crop prospects are improving. Color is returning to the soybeans and corn is pollinating in almost ideal conditions. Preliminary ear checks show tremendous potential in length, girth, and stands. With average weather from here on, we could rival another record crop in this area. Corn, $3.45; fall, $3.40; soybeans, $9.50; fall, $8.60; wheat, $4.30.

Steve Ayers, Champaign, Champaign County: Rain has finally stopped with fall-like temperatures, so farmers have been busy catching up on spraying, mowing, and baling. In corn, there is a lot of pollinating and fertilizing going on under ideal conditions. On the lookout for Japanese beetle silk clipping, common rust, and gray leaf spot. Corn and beans are still widely varied in height and condition, but at least we can finish spraying during this dry spell. There is real concern that volunteer corn, weeds, and soybeans are on the upper end of effective control.

Early soybeans are flowering. Fair season kicks off this week with the Fisher Community Fair July 6-10, 4-H Expo July 68, and Historic Farm Days in Penfield July 811 featuring red equipment. See you at the fair!

Wilfred Dittmer, Quincy, Adams County: It was a pretty dry week around here after last Sunday (June 27) when we received about 0.25 of an inch of rain, which brought our total to 5.5 inches. Crops are looking better, especially corn, since the soils are finally drying out. But many fields still are tall and short corn and everything in between. Some are applying nitrogen, as well as ground-applied liquid and anhydrous. A few are still seeding soybeans, while others are done for the year.

Some hay actually was put away, and I saw one combine running in the wheat. July is here, so maybe we will finally get our summer.

Carrie Winkelmann, Menard County: With only 0.6 of an inch of rain last week, the growing conditions have been perfect for herbicide application. We finished spraying beans and patched in those wet spots that never came up in the bean fields. I believe that most were able to take advantage of the good weather and get any beans that were not already planted in the ground. The weather also has been excellent for pollination and the corn is doing well. A lot of hay was cut and baled, some for the first cutting. Wheat harvest is in progress. On a more sour note, I finally gave up on half of my hail-damaged garden. Dug all the potatoes, saved two rows of beans and four rows of popcorn, but other than that I am starting over.

Tom Ritter, Blue Mound, Macon County: A beautiful week of weather without any rainfall.

Ideal temperatures for the growing crops, as well as working conditions. Crop prospects for corn at the moment look very good. Corn is in the middle of pollination. A lot of fungicides were being applied in the area during the past week and more will be in the coming week or two. Soybeans also continue to grow, but the amount of rainfall during the month of June has stunted many of the beans in low-lying areas. The biggest problem in the soybeans is volunteer corn due to the terrific amount of downed corn from the harvest of last fall into winter. Crops prospects on both, however, are looking very good. Corn in some spotted areas has received damage either from strong winds or from small ponded areas that caused the corn to wilt and die.

Ted Kuebrich, Jerseyville, Jersey County: Jersey County received 2 inches of rain last week, and the temperature cooled down to the mid-80s.

After the rain last week, farmers got back to cutting wheat.

Moisture in the wheat that Jersey County Grain in Hardin was getting was running 14 to 16 percent. Some of the wheat fields are going to be double-cropped to beans. Crop dusters were spraying corn with fungicide last week. The sprayers have headed to some of the bean fields to spray Japanese beetles. The Illinois River flood stages at Hardin is at 425 feet and the river Friday morning was at 432 feet. Prices at Jersey County Grain, Hardin: July 2010 corn, $3.62; fall 2010 corn, $3.36; January 2011 corn, $3.70; July 2010 beans, $9.56; fall 2010 beans, $8.88; January 2011 beans, $9.09; July wheat, $4.64.

Page 7 Monday, July 5, 2010 FarmWeek

CROPWATCHERS Todd Easton, Charleston, Coles County: We made it through June without getting washed away, but with more than 8 inches of precipitation for the month, some were getting worried. Several holes have appeared in cornfields that were chest-high two weeks ago. The water killed even the tall, healthy plants in low areas.

Corn on the higher ground is looking very good for the most part with virtually all tasseled and some in the pollination stage.

The buzz of the yellow spray planes is a common sound as they make fungicide applications. This year, many producers are worried about disease potential after the very wet spring and seem to be treating more acres than last year. Several soybean fields are beginning to bloom and are looking good with the exception of the low areas and weed infestations that nobody was able to spray until last week. What little wheat we had has been harvested, with yields reported as being OK, but no records set this year. I hope everyone had a good holiday and took time to appreciate this great nation we live in and those who made it possible.

Jimmy Ayers, Rochester, Sangamon County: This past week, we received 0.5 of an inch of rain, which is much drier than we have been for many weeks. A lot of the corn is tasseling now, but it is not near a great crop.

There are uneven stands and a lot of yellow corn in many fields.

However, the early-planted corn looks really good. Beans had tremendous growth. A great deal of spraying was done to the bean crop last week. A lot of guys are putting their first and second crop of hay up at the same time. Yields I’ve heard on the little bit of wheat in the area were from 37 to 58 bushels per acre with poor test weight and poor quality. We probably are going to try to plant a little bit of beans in the river area.

Sangamon and Menard County Farm Bureaus and the Lincolnland FS last week had a really nice appreciation dinner at the state fairgrounds. I appreciate the efforts they and the Farm Bureau put forth in the counties. The Christian County Fair runs from July 6-11. Apparently the markets are responding to some of the crop damage in the area, and the shortage of last year’s crop also is being taken into account.

Dan Meinhart, Montrose, Jasper County: No rain since the weekend (June 26-27) left from 0.5 of an inch to several inches.

Some people were able to get back into the fields at mid-week.

Planting beans is in full swing.

Post chemicals are being applied. Wheat harvest and straw baling are wrapping up.

Baling of grass hay is in progress. Working outside is more pleasant with the lower temperatures and lower humidity of the last several days. If the weather holds to mid-week, a lot of progress will have been made. Higher temperatures and humidity are expected to return.

Bob Biehl, Belleville, St. Clair County: We had a beautiful week since the cool front went through on Sunday night (June 27). We managed to get a muchneeded 0.5 of an inch of rain and the range was from just a disappointing sprinkle to more than an inch. Japanese beetles have been doing some silk clipping, but there’s been no spraying that I have heard. Timing is right for fungicide application, but it’s not a common practice in our location or even much of the whole county.

Several fields of beans are getting sprayed for the first time and maybe the last. The market gave us an unusual surprise at mid-week, which should give producers a chance to wrap up some old-crop corn sales. Cash corn at the river terminals closed at $3.79, beans at $9.80, and wheat at $5.04.

Rick Corners, Centralia, Jefferson County: We had a dandy 0.7 of an inch of rain last weekend (June 26-27) but with the low humidity last week, we are going to need another one real soon. The early corn is in full tassel now and a good soaking rain would be a blessing. The beans didn’t jump after the shower like I thought they would. Seems like they are kind of stuck. I reckon that week of 95 degrees gave them heat stroke. They better toughen up, though, because I’m sure there is more to come. Hope everyone had a good Fourth and remembered not to hold them too long before they threw them.

Reports received Friday morning.

Expanded crop information available at FarmWeekNow.com

Kevin Raber, Browns, Wabash County: Another month has been removed from the calendar. We had a great week weather-wise. A small shower early in the week and then much cooler temperatures and lower humidity. There were a lot of areas of corn sprayed with fungicide last week.

Couldn’t find many insects, but enough disease to justify spraying. The Big Wabash is still above flood stage. I’m beginning to wonder if it will go down in time to replant soybeans.

Dean Shields, Murphysboro, Jackson County: The weather last week was pretty nice. The humidity dropped down quite a bit and it really felt nice to be outside. A little bit cooler in the mornings gave us some opportunity to do those hot jobs that we have been staying away from around the shop. A lot of spraying is going on now on soybeans and corn. A lot of the corn is pollinating right now and looks pretty decent. Beans are coming along pretty well and we have all sizes in Jackson County. I just planted a few more acres Thursday on some low ground.

Almost wrapping it up here with the planting. The river bottom people do not have much left to plant. Wheat harvest is over and we are getting around to doing a lot of mowing. Looks like most guys could relax during the Fourth of July weekend and enjoy it.

Ken Taake, Ullin, Pulaski County: We had some showers last weekend (June 26-27). We received about a half inch of rain. Some areas of the county received more than an inch. It’s getting dry and we could certainly use a nice inch to an inch and half of rain. Our main activities have been mowing and working on equipment. Most of the post spraying, at least the first time around, is done. There is a lot of corn pollinating right now. It cooled off last week, so as long as our moisture stays adequate, corn should be in pretty good shape. Beans are growing well. They are starting to fill in rows. Where the weeds are controlled, the beans are looking pretty good — at least from the road.

July forecast mixed

Weather calms down after active month of June

BY DANIEL GRANT FarmWeek

Rainfall totals last month confir med it was the second-wettest June on record in Illinois.

T h e s t a t e w i d e a ve r a g e precipitation last month was 7.8 inches, 3.7 inches above normal, according to Jim Angel, state climatologist with the Illinois State Water Survey.

The largest rainfall totals occur red in the nor ther n two-thirds of the state (see graphic) where anywhere f r o m 7 t o 1 3 - p l u s i n ch e s were common.

“It’s very wet across the s t a t e,” A n g e l t o l d Fa r m We e k . “ Fo r m a n y p l a c e s (par ticularly Wester n Illinois) it’s been two months in a row with exceptionally wet weather as many (weather) stations had 7 to 8 inches of rain (in May).”

June also was the 10th war mest on record with an average temperature of 74.9 degrees, 3

deg rees above nor mal.

“That’s very unusual considering that, in most cases, a wet June tends to run on the cool side,” Angel said.

Numerous par ts of the

FarmWeekNow.com Visit FarmWeekNow.com to listen to climatologist Jim Angel’s comments on recent weather trends.

state also got pounded last month with several rounds of severe weather — including tornadoes, strong winds, and hail.

This month, temperatures in Illinois could be cooler than nor mal while rainfall could remain above normal, based on a forecast from the National Oceanic and Atmospheric Administration Climate Prediction Center.

Mike Palmerino, DTN ag meteorologist, projected temperatures this month would range from highs in

the mid-80s to mid-90s between Interstates 70 and 80. He also projected rainfall would be variable. “ Te m p e r a t u r e - w i s e, we’re unlikely to see anything much above 95,” he said.

Palmerino also suggested there is little chance of Midwest weather suddenly tur ning hot and dr y for a sustained period this month despite a weak La Nina, cooler-than-nor mal water temperatures in the Pacific.

“The models are not showing a major La Nina event,” he said. “Temperatures (in the Pacific) seem to be stabilizing a bit.”

The weather forecast this month, if realized, would be beneficial to the cor n crop for pollination.

However, if La Nina does affect Midwest weather, it likely will happen in August or September, which could affect pod fill in soybeans.

Palmerino said the big gest impact of La Nina

wouldn’t be felt until October, though. That scenario actually could benefit Mid-

west farmers in the form of a drier harvest season than last year.

FarmWeek Page 8 Monday, July 5, 2010

LIVESTOCK

Illinois beef producers optimistic, see room for growth

BY DANIEL GRANT FarmWeek

Beef producers who struggled financially in recent years generally are optimistic so far this year as margins have improved, according to leaders of the Illinois Beef Association (IBA).

Feed costs in the past year have moderated while cattle prices have improved following a reduction in the U.S. herd. Prices earlier this spring briefly topped $100 per hundredweight.

“This year is different. It’s one of the better years we’ve seen in a long time,” said Jamie Willrett, a fifth-generation beef

producer from Malta, who last week hosted a group of fellow producers on his farm as part of the IBA summer conference and industry tour. “(Domestic) demand has been stable and foreign demand is improving.”

Jeff Beasley, IBA vice president and a beef producer from Creal Springs, noted beef producers last week still were in position to make money despite slightly lower cattle prices. USDA last week also reduced corn stocks, which could trigger higher corn/feed prices in the near future.

“We are recouping some of the losses we had the last two or three years,” Beasley said.

“The market has regressed a little bit, but I’d say optimism still is pretty good.”

In fact, Illinois beef industry leaders believe the state is in position to expand its cattle herd due in part to ample feed availability and marketing options.

“We’re in a good position to grow the industry in the state,” said Trevor Toland, IBA president and a beef producer from Macomb.

Nic Anderson, business developer for the Illinois Livestock Development Group, said opportunities to raise cattle profits have shifted from

the Southeast to the Midwest due to the large amount of byproducts available for feed and a lower cost of production in the Midwest.

Willrett, who has multiple feedlots with a total capacity of 5,500 head, said he has been using feed rations with as much as 45 to 48 percent by-products, such as distillers grains.

“We can buy the byproducts back cheaper and sell the corn,” said Willrett, who is a Midwest director for CattleFax and an IBA member. “It’s been a real advantage in this part of the world.”

Toland believes numerous feed options in Illinois also should help cattle producers avoid problems in coming months from a possible hay shortage in some parts of the state due to excessive moisture.

Producers who are interested in expanding their cattle operations in the state also could receive assistance from the Environmental Quality Incentives Program (EQIP), administered through the Natural Resources Conservation Service. EQIP funds to producers last year totaled about $12 million, Anderson added.

Ohio ag groups, HSUS sign animal care agreement The Humane Society of the United States (HSUS) last week agreed to end its pursuit of an animal care amendment on the November ballot in Ohio.

Ohio Gov. Ted Strickland last week brokered a deal with HSUS, the Ohio Farm Bureau Federation, and other ag groups that reportedly found “common ground” among the groups.

Instead of banning veal and gestation crates along with battery cages for egg-laying hens, the groups signed a memorandum of understanding that proposed: phasing out veal crates in 2017; phasing out new hog gestation crate use this year with a 15-year phase-out on existing equipment; implementing a “timeout” on new battery cage permits; and instituting standards for downer livestock and euthanasia practices.

Ohio voters last year approved the formation of the Ohio Livestock Care Standards Board, which generally was viewed as a victory for ag interests.

But HSUS, prior to last week’s agreement, was gearing up for another ballot initiative this year. That initiative, if approved by voters, could have overridden the authority of the new livestock care board.

“This agreement allows the Ohioans for Livestock Care Board to carry out its mission as approved by the voters last fall,” said Jack Fisher, Ohio Farm Bureau executive vice president. “It allows Ohio farmers to continue producing safe, local, and affordable food for Ohio consumers.”

Illinois Farm Bureau last year supported the effort in Ohio to create the livestock care board.

Philip Nelson, IFB president, in response to last week’s agreement between Ohio ag interests and HSUS said, “We have to trust that the Ohio Farm Bureau did what was best for producers in that state.

“Unlike Illinois, Ohio is a ballot initiative state,” said Nelson, and a second consecutive ballot initiative would have been costly for all parties.

The memorandum of understanding is a working agreement but not a legal document. Terms of the agreement reportedly will give Ohio producers time to make any changes or upgrades to facilities without compromising their ability to stay in business.

The agreement was signed by HSUS, the Ohio Farm Bureau, and commodity group leaders representing the pork, poultry, beef, dairy, corn, and soybean industries in Ohio.

“This is an agreement for Ohio agriculture,” Fisher said. “It’s about the highest level of risk management for a positive business climate for Ohio farmers.”

Fisher believes changes in livestock production are inevitable as producers find better ways to manage their animals, technology improves, and many businesses in the food chain begin to implement their own protocol for livestock best management practices.

“When you strip away the politics and activism, animal welfare is at the heart of this matter,” Nelson said. “Though Ohio has agreed to phase out some current housing systems, one cannot deny the benefits that those systems ultimately provide for livestock.”

Wayne Pacelle, president and CEO of HSUS, seemed content with the compromise.

“It’s expensive and it is an uncertain circumstance for both sides to have a ballot initiative,” Pacelle said. “It’s a better outcome if we can advance these reforms.”

Jamie Willrett, right, a fifth-generation beef producer from Malta, discusses production practices and industry economics on his farm with fellow producers during the Illinois Beef Association’s summer conference and tour. The event featured farm tours, a meet-and-greet with urban legislators, a tour of the kitchens of Sara Lee in Downers Grove, a tour of McDonald’s Hamburger University in Oak Brook, and numerous conference sessions focused on improving profitability for cattle farmers and ranchers. (Photo by Daniel Grant)

Asia market frustrates, excites U.S. producers The market for U.S. beef in Asia has been a source of frustration for cattle producers in recent years.

But it also offers some of the greatest potential in the world when it comes to future demand, according to the U.S. Meat Export Federation (USMEF).

Japan and South Korea continue to maintain import restrictions on U.S. beef while China has remained closed to U.S. beef products since BSE was discovered in a U.S. cow in 2003.

“China is thwarting us almost across the board on animal agriculture trade issues,” said Steve Foglesong, president of the National Cattlemen’s Beef Association (NCBA) and a cattle producer from Astoria.

China last month lifted trade restrictions on Canadian beef.

“We’re now in the position of being outpaced and outhustled by competing nations,

putting American jobs and market share at risk,” the NCGA president said.

Joel Haggard, USMEF senior vice president for the Asia-Pacific region, reported the U.S. beef industry from 2004 through the first half of 2010 lost an estimated $14 billion due to market closures or restrictions in Asia.

“Recovery (of U.S. beef sales in Asian markets) has been steady but slow” since 2003, Haggard said. “It’s a very challenging environment. We’ve had to do a lot of work rebuilding channels (in South Korea and Japan).”

Fortunately, total exports of U.S. beef the first half of this year were up 12 percent compared to the same time last year, according to Erin Daley, USMEF economist.

And recent forecasts suggest U.S. beef exports this year will come within 3 percent of preBSE totals in 2003.

“If we see this forecast occur, a greater percentage of our products will be exported,” said Daley, who noted U.S. beef production is down this year compared to 2009. “We expect international consumers to outbid consumers in the U.S.” The U.S. currently is exporting about 11 percent of the beef it produces. But this figure could grow, according to USMEF. The U.S. has recovered only about 30 percent of pre-BSE market share in Japan and 40 percent in South Korea. Meanwhile, the Chinese food service industry has grown at a rapid clip of 15 percent annually in recent years.

“China likely would assume the fifth-largest market spot (for U.S. beef exports) almost immediately upon regaining access and it would grow from there,” Haggard said. — Daniel Grant

FarmWeek Page 9 Monday, July 5, 2010

FROM THE COUNTIES

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UREAU — Two informational meetings on the U.S. Environmental Protection Agency’s spill prevention, control, and countermeasure rule will be on Monday, July 26.

The first meeting will be at 9 a.m. at the Bureau County Farm Bureau and the second at 1 p.m. at the Marshall-Putnam Farm Bureau office. Clem Weborg, Ag View FS’ energy marketing manager; and Kevin Runkle, Illinois Fertilizer and Chemical Association, will be the speakers. Call the Farm Bureau office at 815-875-6468

by Monday, July 19, for reservations or more information.

• An informational seminar about marketing techniques will be at 6:30 p.m. Wednesday, July 21, at the Farm Bureau office. The seminar is an extension of last summer’s Marketing 101 series. Dinner will be served. Scott Stoller, Michlig Ag, and Dan Aubrey, Consolidated Grain and Barge, will be the speakers. Call the Farm Bureau office at 815-8756468 by Friday, July 16, for reservations or more information.

ARROLL — Farm Bureau and Country Financial will sponsor their annual membership appreciation breakfast from 6:30 to 10:30 a.m. Friday, July 16, at the Farm Bureau office. Call the Farm Bureau office for more information.

HAMPAIGN — Farm Bureau will sponsor a land use seminar from 9 to 11:30 a.m. Wednesday at the Farm Bureau auditorium. Cost is $10 or $15 for two sessions (the second one will be Tuesday, Aug. 3). Registration forms are available at the Farm Bureau office. Call the Farm Bureau office at 217-342-5235 for more information or to register.

• Farm Bureau and the Champaign County Soil and Water Conservation District (SWCD) will sponsor a

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drainage meeting from 8:30 to 11 a.m. Friday at the Farm Bureau auditorium. Call the Farm Bureau office at 3525235 or the SWCD office at 352-3536 for more information.

ULTON — Farm Bureau will sponsor its annual pool party and cookout for members at 6:30 p.m. Friday, July 16, at the Big Creek Park Pool. All food and drinks will be provided. Call the Farm Bureau office at 547-3011 for more information.

AMILTON — Farm Bureau will sponsor a bus trip Sunday, Aug. 1, to the St. Louis Cardinals vs. the Pittsburgh Pirates game. The bus will leave the Farm Bureau office at 9 a.m. and at 9:45 a.m. from the Mt. Vernon WalMart. Cost is $40. Call the Farm Bureau office for reservations or more information.

ACKSON — The Young Farmer’s antique tractor pull will be at 11 a.m. Sunday, July 25, at Vergennes Equipment. There will be two different classes — pulling and barnyard tractors.

• A fish fry and fun night will be from 6 to 8 p.m. Saturday, July 31, at the Murphysboro American Legion. Proceeds will benefit Jackson County Farm Bureau Foundation. Big Muddy Fryers will serve the food. A silent auction, live music, and a 50/50 drawing will be held. Tickets are $7.50 for adults (12 years and older), $3.50 for children 4 to 11, and children 3 and under are free. Tickets are available at the Farm Bureau office. Call the Farm Bureau office at 618684-3129 for more information.

EFFERSON — Farm Bureau will sponsor a bus trip Sunday, Aug. 1, to the St. Louis Cardinals vs. the Pittsburgh Pirates game. The bus will leave the Hamilton County Farm Bureau office at 9 a.m. and at 9:45 a.m. from the Mt.

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Pull for Agriculture Education July 17 Hundreds of target shooters will raise money for agriculture literacy July 17 at the Pull for Agriculture Education.

This year, the Randolph and Perry County Farm Bureaus are hosting the annual sporting clays and trap shooting event at the World Shooting and Recreational Complex near Sparta in Randolph County.

The event raises money for the Illinois Agriculture in the Classroom (IAITC) program. More than $4,000 in prizes will be awarded. The event will feature: • Buy A Farm.com Youth Shoot Out: Any youth sporting clays shooter who hits 85 to 100 targets on the main course and any youth trap shooter who hits 90 to 100 targets on the main course will be eligible to compete in this special youth shootout.

• Gateway & Southern FS $500 Shootout: Any sporting clays shooter who hits 90 to 100 targets on the main course and any trap shooter who hits 95 to 100 targets on the main course will be eligible to compete in this special shootout.

• Free registration for junior shooters is provided by the Illinois Department of Natural Resources.

Event pricing, details, and registration information are available online at {www.rcfb.org} or by calling 618-443-4511 or 618357-9355.

Vernon Wal-Mart. Cost is $40.

Call the Farm Bureau office for reservations or more information.

• Members are invited to the Jefferson County Fair from 4 to 8 p.m. Tuesday, July 20, for dinner and homemade ice cream. The Farm Bureau board of directors and spouses and Country Financial representatives will prepare the meal. Call the Farm Bureau office for more information.

• Farm Bureau will sponsor a legislative appreciation breakfast for state Sen. John O. Jones (R-Mt. Vernon) and state Rep. John Caveletto (R-Salem) at 7:30 a.m. Thursday, July 15, at the Farm Bureau office. Call the Farm Bureau office at 2424510 by Friday for reservations or more information.

EE — The Lee County Farm Bureau Foundation will sponsor a raffle for your choice of a John Deere or Case IH pedal combine. Tickets are $5 or three for $10.

The winner will be selected Sunday, July 25, at the Lee County 4-H Fair and Junior Show. All proceeds will benefit the ag literacy programs. Tickets are available at the Farm

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Bureau office or from a board director. Call the Farm Bureau office at 815-857-3531 or email leecfb@comcast.net for more information.

EORIA — A farmland assessment public meeting will be at 6:30 p.m. Thursday at the Farm Bureau auditorium. Dave Ryan, Peoria County supervisor of assessments, will moderate the meeting.

• The Heart of Illinois Fair will be Friday through Saturday, July 17, at Exposition Gardens, Peoria. Farm Bureau will have a Spin the Wheel game in the Exhibit Hall.

• Orders for Michigan blueberries are due Friday.

Blueberries are available in five-pound or 10-pound containers. Delivery to the Farm Bureau office will be Thursday, July 15.

• Entries are due Friday for the golf scramble at Laurel Greens. The shotgun start is at 7 a.m. Cost is $15 for golf and cart.

• A History of Illinois Agriculture tour will be Thursday, July 22. Participants will visit the Gillett Home, Elkhart Hill; Prairie Home near Funk’s

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Grove, and Haws Wooden Grain Elevator. Cost is $40, which includes bus, lunch, and tours. Call the Farm Bureau office for more information.

TARK — The Viewpoint and Policy Development Committee will sponsor a breakfast for township trustees at 8:30 a.m. Wednesday, July 21, at Connie’s, Toulon. The breakfast meeting will honor the employees for their service and discuss local issues.

ERMILION — Orders for Southern Illinois peaches are being taken through Friday, July 23. Cost for a 25-pound box for members is $23 and $28 for nonmembers. Delivery will be the end of July or first part of August. Call the Farm Bureau office at 217-442-8713 or go online to {www.vcfb.info} for more information.

• Farm Bureau will sponsor a member appreciation night at 6 p.m. Friday, July 16, at the Danville Dans vs. Springfield Sliders double-header game.

Tickets are available at the Farm Bureau office or any Country Financial office in Vermilion County.

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FarmWeek Page 10 Monday, July 5, 2010

PROFITABILITY

Refresher on basics of grain contracting tracts can be written or verbal, and a binding grain contract may exist without a written or signed document.

Contracts may address myriad other issues, and grain contracts often address destination, shipping period, grade, weight, quality, warranty, overages, title, and dispute resolution.

Dispute resolution terms describe what will happen if either party defaults or if performance disputes arise.

Grain contracts may be governed by National Grain and Feed Association rules and arbitration, or they may leave dispute resolution to applica-

BY PETE TROTTER

Many types of contracts are used in agribusiness. This article provides a refresher on the basics of grain contracting.

Contracts typically require some performance by each party.

Grain contract performance obligations are Pete Trotter straightforward — the farmer delivers grain and the elevator pays for that grain.

While a written agreement is better for all parties, con-

SIU’s 44th annual field day set for July 15 Southern Illinois University (SIU) at Carbondale’s 44th annual field day will be Thursday, July 15, at the College of Agricultural Sciences’ Belleville Research Center on Illinois Route 161.

The exhibit tent will open at 8 a.m. and feature displays on the Illinois Soybean Association yield challenge and mycotoxin testing in stored grains. The regular program will begin at 9 a.m.

Bryan Young, weed scientist, will discuss soybean herbicide programs that boost profits, while new wildlife specialist, Clayton Nielsen, will outline wildlife pest management techniques.

David Marshall, a commodity broker from Iowa, will give marketing tips.

University of Illinois guest speakers include soybean Extension specialist Vince Davis and soil fertility specialist Stephen Ebelhar. Purdue University Extension corn specialist Robert Nielsen will discuss corn seeding rates and row spacing.

A free meal will be served at noon. For more information, call SIU’s Ronald Krausz at 618-566-4761.

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-$47.70 $38.83 $57.65-$67.00 $62.59 n/a n/a This Week Last Week 25,403 35,057 *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 $76.55 $79.09 $56.65 $58.53

Change -2.54 -1.88

USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers

This week $91.01 $90.96

Prv. week $90.71 $90.91

Change 0.30 0.05

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 111.22 110.96 0.26

Lamb prices Confirmed lamb and sheep sales This week 550 Last week 681 Last year 649 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $115. Good and choice 1-2: 60-90 lbs., $125.

Slaughter Ewes: Utility and good 1-3: $43-$45. Cull and utility 1-2: $43.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 06-24-10 4.6 16.0 35.4 06-17-10 8.2 13.4 29.2 Last year 14.3 11.3 29.4 Season total 1358.8 51.9 1479.2 Previous season total 1131.7 50.8 1383.3 USDA projected total 1445 900 2000 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

ble law and courts.

Remedies for default vary and include the requirement that performance be completed or damages invoked.

Everyone wants to avoid grain contract disputes, but confusion and disagreement sometimes occur. Farmers may not understand the obligation to deliver grain at contracted quantities, and elevators may not comprehend the duty to pay for grain at contracted prices.

Contracts with price risk management terms may increase the risk of confusion.

Price risk management programs such as those offered by AgriVisor through eligible elevators provide unique benefits to farmers by controlling

exposure to commodity price volatility.

Program terms become part of grain contracts through pricing amendments.

A farmer participating in an AgriVisor program gives up control in grain pricing in exchange for price volatility protection. Confusion may arise when market and contract pricing vary.

A farmer is required to deliver the contracted quantity of grain to the elevator even if another elevator offers a better price, and the price he is paid by the contracting elevator would be dictated by program terms.

In return for a predictable supply of grain, an elevator accepts the risk of paying

more for that grain than it might have to pay another farmer in the future.

Farmers and elevators can avoid disputes over contract performance if they understand contract terms before entering into grain contracts, and if they comply with contracts to which they are a party.

In the long run, the use and performance of grain contracts are important for the agricultural industry because grain contracts provide clarity, predictability, and other benefits for all industry participants.

Pete Trotter is GROWMARK’s assistant general counsel. His e-mail address is ptrotter@growmark.com.

Purdue researcher: Atrazine efficient, cost-effective American agriculture’s oldest and most well-established herbicide, atrazine, is an inexpensive and effective way to protect corn against many types of weeds, according to Bill Johnson, Purdue University weed scientist.

Currently, the Environmental Protection Agency (EPA) is reviewing the safety of atrazine for the third time since the early 1990s. In each of the two previous reviews, EPA ruled in atrazine’s favor.

The most recent came in 2006 and involved consideration of 6,000 studies and 80,000 public comments.

‘Only a select few (herbicides labeled for cor n) control as many weeds at as low a cost as atrazine.’

— Bill Johnson Weed scientist Purdue University

Annually in the United States, atrazine saves farmers an estimated $2 billion by increasing crop yields and helping farmers avoid other, more costly herbicides, Johnson said.

“There are a lot of herbicides labeled for corn, but only a select few control as many weeds at as low a cost as atrazine,” Johnson said. “Herbicides with more narrow spectrums drive up costs and eliminate the simplicity atrazine offers.”

Farmers can ensure atrazine is applied as safely and effectively as possible by following label instructions and knowing

when and where to apply the herbicide.

“Farmers need to understand both the rate restrictions of atrazine for different soil types and the setbacks from water sources,” Johnson said.

“Like any chemical, they shouldn’t apply atrazine right before a big rain in order to prevent runoff.”

Other best management practices include establishing

66-foot grass buffer strips along bodies of water and ditches to help filter atrazine from water flowing across fields, switching to herbicides that are tank-mixed with atrazine to reduce the amount used, turning off sprayers when crossing grass waterways, and selecting crops that don’t require the use of atrazine when planting near water sources.

Milk price higher for third month The Class III price for milk adjusted to 3.5 percent butterfat for the month of June was $13.62 per hundredweight. This is a 24-cent increase from the previous month.

Despite three consecutive months of higher prices, the Class III price still has not made up the $1.50 drop seen in March.

Producers noted lower milk numbers during the prolonged bout with high heat and oppressive humidity. It was excellent hay-growing weather, but the hay didn’t cure well during those days.

FarmWeek Page 11 Monday, July 5, 2010

PROFITABILITY Corn Strategy

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

Corn estimates shock trade The June 30 USDA reports were shockers for the corn trade.

Historically, plantings tend to rise, not fall, from the March forecast, especially when planting goes as well as it did this year.

But that wasn’t the biggest shock — the June 1 corn stocks were. The combination of the two removed 550 million to 600 million bushels from the supply for the next year compared to what traders anticipated before the reports.

The corn market shifted from a moderately negative stance to one that’s moderately friendly because of the reports.

The elimination of those potential supplies created a need to put “risk premium” back in the market, at least until a good crop is assured.

But, lest you get too bullish, we’ve put together a potential supply/demand scenario for the July 9 supply/demand report to see how it would affect prices.

Making adjustments on both the supply and demand sides, it shifted the potential new-crop ending stocks from 1.57 billion

Basis charts

bushels to 1.18 billion bushels.

Because the stocks/price relationship curve is still not real steep, the average price may only go up 15-20 cents from prior expectations.

USDA’s models had been forecasting the new-crop’s average price in a $3.30-$3.90 range with a midpoint of $3.60.

One could argue the average price could move back over trend relationship as it was in 2007 and 2008, but our economy, and most others in the world, is soft enough to caution against expecting that.

Growing conditions and this year’s yield will have a lot to do with how the supply/demand balance sheet comes together over the next few months.

Good early growing conditions have sparked expectations of seeing a yield just above 170 bushels per acre. USDA is using a 163.5-bushel yield.

The trend yield we are using is 160.8 bushels. The early condition ratings suggest a 166bushel yield potential using our crop rating-yield model.

We don’t think it wise to forecast a yield based on crop ratings, especially before the crop goes through the critical development periods.

And this year, there are issues with denitrification and compaction that could have negative yield repercussions that are not easy to identify at this time.

Economic activity, both here and elsewhere in the world, can impact price structure as well.

Even though the reports and market response may have ignited your bullish hopes, it may be important to keep them somewhat in check.

Even though intermediate length cycles have bottomed, the 5- to 5.5-year price cycle for corn still points down into late 2010 or early 2011.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

Cents per bu.

2009 crop: The recent USDA reports supplied the catalyst to shift the momentum back up. Use current strength to make catch-up sales.

2010 crop: The December contract penetrated key resistance at $3.65, opening the door for the move into the $3.80s. Even though the performance confirmed the 20and 40-week cycles have turned up, use this surge only for making catch-up sales. Because we see potential for prices to sustain strength at least another three to five weeks, hold off additional sales.

Fundamentals: The June USDA stocks report confirmed the 2009 corn crop had quality issues. The 4.31-billionbushel June 1 stocks were more than 300 million below expectations. At the same time, the new-crop planting number came in 1.5 million acres fewer than expected, potentially removing another 240 million bushels from the new crop.

The steep drop in expected supply for the next year forced the trade to put some risk premium back into the market until a good yield is assured.

Soybean Strategy 2009 crop: Old-crop futures continue to run out of buying power above $9.50, hinting demand is weakening.

Merchants are shifting basis bids forward to November, but those premiums will erode if futures rally much. Use strength for catch-up sales.

2010 crop: It looks like November futures are nearly done with the retest of the early June cycle low. Even though new USDA numbers weren’t friendly, they weren’t negative, either, leaving room for prices to rally. But, longterm cycles still point to weakness. Plan to add to sales if November rallies back to $9.50-$9.60.

Fundamentals: The lower old-crop stocks nearly offset the impact of larger new-crop plantings. Still, potential newcrop ending stocks easily could drift toward a tight level if yield potential deteriorates.

That dictates a need for the

trade to maintain some risk premium until it looks like the crop will pass August with few problems.

Wheat Strategy 2010 crop: The penetration of key resistance levels suggests the short-term trend has turned higher. The recent correction likely was a retest of what should also be the seasonal low. We suggest making catch-up sales above $4.80 on the Chicago September contract. If that contract can reach $5.25, we may make another 10 percent sale, bringing the total to 50 percent

complete. Given this week’s surge, short-term storage has become less attractive.

Fundamentals: Wheat supplies continue to be chipped away by scattered world growing problems. The trade currently is keeping an eye on Russian weather, with some private groups forecasting a 2010 grain crop at 82 million to 86 million metric tons, and possibly as low as 80 million because of extreme heat. Because Russia has been extremely competitive in the world export market, and a substantial supplier to Egypt, that could change pricing attitudes over the next year.

FarmWeek Page 12 Monday, July 5, 2010

PERSPECTIVES

Who decides what farm animal care isn’t appropriate online?

Steve Fluty of rural Bloomington is among the new generation of Illinois dairy producers. (FarmWeek file photo)

FACT vs. FICTION Dairy farm realities fly in face of misinformation The greatest authorities on any subject, it seems, are the people who know the least about it.

That tongue in cheek statement truly applies to the Humane Society of U.S. (HSUS) and PETA (People for the Ethical Treatment of Animals). They continuDON ELLINGSON ously try to tell the nation how bad the guest columnist dairy industry is and, therefore, should be federally regulated. Better yet, they say, don’t consume dairy products.

The fact is — the members of these organizations are people with too much money, too much time on their hands, vegetarians, and uninformed individuals on a mission pertaining to an industry about which they know next to nothing and have no experience.

For example, there are false rumors and insinuations that there are antibiotics in much of the milk sold in this country. Nothing could be further from the truth!

Milk is tested for antibiotics at the farm and all along the line while being processed.

The tests are so sensitive that even the slightest amount of antibiotics in a tank of milk would dictate the milk be dumped. Down the drain it would go.

If a dairy farmer’s milk has antibiotics in it and it is picked up by the hauler and contaminates the whole truckload of milk, the load would have to be dumped, and the dairy farmer would be liable for the value of the whole load.

If a load is contaminated, there is no doubt which farm it came from because the hauler always takes a sample from each farm cooler before pumping the milk onto his truck.

Dairy farmers cannot afford to let any contaminated milk leave their farms.

So everyday they thoroughly clean and sanitize their cooler.

Anyone who ever milked cows and worked

on a dairy farm would know this. But, of course, it is unknown to activists whose source of information is propaganda, not facts.

Admittedly, somewhere you can find someone who is a pathetic dairyman who doesn’t treat his animals with kindness and logical good care.

Over the years, there have been fewer and fewer of these unsuccessful dairymen because they financially are self eliminating. It is a universal fact that the highest-producing, most successful herds are fed and treated the very best.

Dairy cows, just like humans, respond to kindness. Dairy farming is a very labor-intensive industry. It is seven days a week year round and includes Sundays and holidays. People don’t get involved in dairying unless they really like animals and enjoy working with them.

The people who are “animal activists” and spread the negative and untrue propaganda have never worked with dairy cattle.

I agree that somewhere somehow it is possible to find something negative to film and show the world. But that one image is not representative of the industry.

Very few people are familiar with the dairy industry. Negative pictures and stories are too often believed because most people have never worked on or even visited a dairy farm.

One cannot criticize members of the general public if they believe this misinformation, because they are not knowledgeable about the dairy industry.

But one can certainly criticize and condemn animal activists for spreading this misinformation because they are uninformed and not knowledgeable about the dairy industry.

Don Ellingson, 86, farms with his son in Boone County and has held several Farm Bureau leadership positions. Until his recent retirement, he was the longestserving member on the Illinois Milk Promotion Board.

Farmers and ranchers are telling their stories far and wide, from face-to-face meetings to harnessing the popular power of social media.

Communications tools such as YouTube, a video hosting site, have helped us put our faces on American food production. As a result, more Americans are CHRIS CHINN learning about modern family farms.

I never hesitate to tell my family’s farm story. The importance of communicating about agriculture has shot through the roof. We have a lot riding on our ability to tell our stories.

The adversaries of modern family-based agriculture know that, too.

Earlier this year I was shocked to discover how far some would go to silence my voice. I know it is a harsh word, but their tactics strongly suggest censorship. They did not want the story of my family’s farm to be told.

Two years ago, my husband and I shot and posted a fiveminute video tour of our family hog farm on YouTube. I took people inside our hog barns, showed them intricate details about our farm, and introduced them to members of my family.

The video grew in popularity.

About the time our video would have eclipsed 27,000 views in January of this year, my daughter asked if she could watch it again.

I typed in the title of our video, “Truth About Modern Pork Production” and instead of being directed to our video, I received a message that our video was inappropriate for viewers under 18.

I tried to contact YouTube multiple times through its website. Eventually, I received a response that indicated members of the YouTube community had flagged my video as having inappropriate content.

Since then, I have learned that a team of people at YouTube reviews a video flagged for elements that would deem it inappropriate for a general audience. Those people look for violence, nudity, drug abuse, or animal abuse, as well as concerns such as hateful content, sexual abuse, cyberbullying, or dangerous conduct.

I can only speculate, but I believe my video was the victim of a deliberate effort to mislead YouTube officials into thinking it did not meet their

guidelines. My video and its pro-agriculture messages were effectively gagged. My best assumption is that people who oppose my livelihood were responsible.

The video tour of my farm did not contain any inappropriate material. We posted our video so the public could see how we care for our animals, how we protect them from predators, weather, and disease, and how we care for the environment.

Our farm is a safe place to raise our kids and we are proud of the commitment we make to keep our animals safe and healthy. Having our video flagged as inappropriate offended me as a mom. Even more frustrating was the feeling that my freedom of speech was stolen.

At any point, there are hundreds, if not thousands, of unblocked videos posted on YouTube that include outrageous and shocking footage. I could not understand why my video, which was intended to be educational, was being banned.

It felt like I was being indicted for telling the truth. My video went from having approximately 1,000 views a month to barely 100 views a month.

After nearly six months of silence, I decided recently to talk about YouTube’s censorship and its unresponsiveness to my pleas. I did several stories.

Only after reporters began calling YouTube did I receive attention. To my surprise, when I checked my video one morning last week, it had been removed from the flagged list and reinstated with its original “G” rating.

My faith in both YouTube and my First Amendment rights has been restored, and I am thankful I will be allowed to tell my family farm’s story once again.

I have learned a few lessons in this saga. I’ve learned to never give up hope. I’ve learned that the truth about farm animal care intimidates those who want to distort the story. It is more important than ever for farmers to tell their stories using social media sites such as YouTube.

We have a great story to tell, but it is a story only we can tell.

Chris Chinn raises hogs in the Midwest and is eager to share the story of her family’s farm. You can follow her on Twitter at @chrischinn.