THE ILLINOIS Agricultural Legislative Roundtable during June Dairy Month visited Illinois’ largest dairy to learn of issues facing that industry. ............................................3
THE ILLINOIS SOYBEAN Association is in its second season of offering producer photographs and updates on the soybean crop online at {www.SoyCam.com}. ....7
RUSSIA IS NOT expected to be a major player in the wheat marke t t h i s y e a r a s i t a t t e m p t s t o rebuild domestic stocks after severe drought there last year. ................10
Monday, June 20, 2011
Two sections Volume 39, No. 25
Senate ethanol vote disturbing but irrelevant? BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
In a whirlwind of activity last week, the Senate first defeated and then quickly and decisively cleared the way for a proposal to eliminate current federal ethanol incentives. Senators Tuesday blocked a vote on Sen. Tom Coburn’s (R-Okla.) proposal to eliminate the 45-cent-per-gallon volumetric ethanol excise tax credit (VEETC) and the 54cent-per-gallon ethanol import tariff designed to offset tax credits for foreign biofuels producers. But Coburn, with support from influential Sen. Dianne Feinstein (D-Calif.), rallied colleagues and secured a second successful “cloture” vote (73-27) allowing consideration of his proposal as part of yetto-be-approved Senate small business legislation. The amendment could come to the floor early this week, and the ethanol industry group Growth Energy (GE) is building support for a counterproposal to move from the existing fixed credit to a “variable rate” credit that would fluctuate with oil prices. Sens. Amy Klobuchar (DMinn.) and John Thune (RS.D.) introduced that measure
last Monday (June 13). GE CEO Tom Buis told FarmWeek Friday Thune, Klobuchar, Coburn, and Feinstein were discussing a possible compromise measure “that could actually be put into a piece of legislation that stands a chance of becoming law.” Even if the Senate moves the larger bill in which it is proposed, Buis calls Coburn’s amendment “unconstitutional,” since tax revenue measures must originate in the House. Jessica Bennett, National Corn Growers Association (NCGA) national policy director, said Coburn’s action is “in reality irrelevant,” and Buis suggests “we’ll be OK, ultimately.” “You have to find a bill both the House and the Senate can agree to and the president is willing to sign,” he said. “I think people are far from that.
We’re hoping we get something that’s going to move. Then we can sit down and do this the right way. “I think this was a vote to appease Senators Coburn and Feinstein and all the oil supporters in the Senate who wanted to stop our industry. But it does send a signal that the VEETC is the most controversial thing around biofuels. “The entire ethanol industry has pledged to reform it, but you don’t just pull the rug from under it. You have to do it in a smart way so you don’t cause disruptions in the marketplace.” Bennett reported NCGA has ramped up its “outreach on biofuels” in the House, but admitted VEETC preservation is “a bit of a roll of the dice,” given conservatives’ dual deficit reduction/tax relief push. The House voted last week
HITTING THE LINKS FOR AG LITERACY
A Country Financial agent team shows its putting skills during the IAA Foundation golf outing last week in Pontiac. Golfers left to right are Joe Knuppel, Macomb, and Josh Riekena, Chris Kappes, and Jason Milam, all of Peoria. More than 200 golfers participated in the 15th annual golf outing at the Elks Country Club and the Wolf Creek Golf Club, both in Pontiac. A scramble competition followed by an evening banquet helped raise funds for the Illinois Agriculture in the Classroom programs. (Photo by Cyndi Cook)
FarmWeek on the web: FarmWeekNow.com
to withhold fiscal 2012 funding to help install ethanol “blender pumps” seen as crucial to expanded biofuels/”flex-fuel” vehicle demand, though senators rejected an amendment by Sen. John McCain (R-Ariz.) to eliminate blender pump support. Bennett noted NCGA’s support for a gradual VEETC phasedown or a variable rate credit. The Thune-Klobuchar plan also provides “a pretty hefty incentive for infrastructure development” (calling for 53,000 blender pumps) and offers “the right path forward for reform,” she told FarmWeek. Under the plan, fuel blenders would receive no
ethanol credit when oil prices exceeded $90 a barrel. If oil fell to between $80 and $90 a barrel, they would get a sixcent-per-gallon subsidy to encourage continued biofuels use, and another six cents would be added for each $10 drop. A maximum 30-cent credit would be offered if oil prices fell to $50 per barrel or less. The bill would allocate $1 billion in annual savings from VEETC reform to deficit reduction and $1.5 billion to infrastructure development. Senate Majority Whip Dick Durbin, a Springfield Democrat, and Sen. Mark Kirk, a Highland Park Republican, support the measure.
IDOT restarting audits
Farmers urged to send FMCSA their comments BY KAY SHIPMAN FarmWeek
The wheels on farm truck regulations continue turning on the state and federal levels. The Illinois Department of Transportation (IDOT) is restarting its new entrant audit process, said Kevin Rund, Illinois Farm Bureau senior director of local government. A moratorium had been placed on those audits in response to the current Federal Motor Carrier Safety Administration (FMCSA) review of interpretations of motor carrier safety regulations. Recently, three interpretations that impact farm trucking were challenged by IFB. That prompted the FMCSA’s review. Those interpretations are: interstate vs. intrastate definitions that apply to hauling of farm products within a state’s boundaries, a for-hire designation for farmers with cropshare leases; and applying trucking regulations to implements of husbandry.
“Gathering input from agriculture producers on rules that will impact farmers’ livelihood is the right thing to do,” said U.S. Sen. Dick Durbin, a Springfield Democrat. “I encourage all producers to take advantage of this opportunity to have their voices heard. FMCSA must fully understand the role of every farmer — those who farm their own land as well as cash rent farmers and crop-share farmers,” Durbin added. U.S. Sen. Mark Kirk, a Highland Park Republican, said: “I’m concerned the FMCSA’s new interpretations will have a significant impact on Illinois’ farmers — costing them thousands of dollars to comply with senseless and burdensome new regulations. “Agriculture is the No. l employer in Illinois and a bright spot in our economy,” Kirk continued. “Government agencies like FMCSA must consider the real world implications new regulations will See FMCSA, page 2
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, June 20, 2011
STATE
Quick Takes COMPTROLLER LAUNCHES WEBSITE — Illinois Comptroller Judy Baar Topinka last week unveiled a new website that includes easy-to-access state financial records and reports, program and service information, and enhanced search capabilities that allow the public to “ f o l l o w t h e m o n e y. ” T h e w e b s i t e a d d r e s s {www.ioc.state.il.us}. Topinka said the website “will make it easier for taxpayers to access information,” including the state contractor information and political contributions, state fund balances and other fiscal information, and the status of vendor payments from the state. NEW FFA STATE OFFICERS — Illinois FFA delegates elected their new state officer team for 2011-2012 last week during the state FFA convention in Springfield. The new state officers are: President Mike Shively, 18, of Buckley and a member of the Paxton-Buckley-Loda FFA Chapter; Vice President Jim Tobin, 18, of Farmer City and a member of the Blue Ridge FFA Chapter; Reporter Christopher Steppig, 18, of Waterloo and a member of the Waterloo FFA Chapter; Secretary Jacob Meisner, 18, of Piasa and a member of the Southwestern FFA Chapter; and Clayton Carley, 19, of Milford and a member of the Cissna Park FFA Chapter. More than 3,100 FFA members, advisers, and guests attended the state convention. WEBSITE MARKS CENTURY FARMS — The American Farm Bureau Foundation for Agriculture recently launched a new interactive website named Agriculture’s Lasting Heritage. The website celebrates the contributions of century farms across the nation. The website is located at {www.agricultureslastingheritage.org}. The site has three main sections: an interactive map that allow Internet users to locate the entity in each state that tracks century farms, a profile section that offers written and video profiles of century farms, and an American and agricultural history section with an interactive timeline dating back to the 1800s. For educators, the website also offers subject matterfocused activities and lessons related to the history timeline. MANURE MAPPING WITH GPS — The same precision farming techniques used for crops can work with manure management on cattle feedlots, according to USDA scientists. Two agricultural engineers in Nebraska used a GPS-equipped conductivity meter to map feedlot pens and cropland. The meter estimates the amount and quality of manure on the feedlot surface by measuring the manure’s ability to conduct electricity. This research could lead to precision harvesting of manure and precision manure applications to crop fields, while controlling nutrient losses, gas emissions, and odor.
(ISSN0197-6680) Vol. 39 No. 25
June 20, 2011
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager
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Secretary of state advises farm truck owners on 2290 tax form BY KAY SHIPMAN FarmWeek Farm truck owners should be aware the office of Illinois Secretary of State Jesse White is accepting through Sept. 30 the Heavy Vehicle Use tax Form 2290 dated July 1, 2010, through June 30, 2011, to register and buy new vehicle tags, according to Bill Graber. Graber, administrator of the commercial and farm truck division of vehicle services department, said local secretary of state facilities have been
advised on this policy. The Internal Revenue Service (IRS) has not yet published a new Form 2290 for the tax peri-
FarmWeekNow.com You can learn more about the truck licensing issue at Farm WeekNow.com.
od that starts July 1. Existing rules allow states to register trucks when applications are received during July, August, or September, 2011.
In Illinois, July 1 is the deadline to renew farm truck, mileage, and flat-rate license plates. Truck owners who bought a new vehicle must satisfy the tax requirement of paying or suspending the tax by showing a stamped Form 2290 with the vehicle identification number to the secretary of state’s office, Graber said. The IRS has posted an explanation for the delay online at {http://www.irs.gov/efile/article/0,,id=231565,00.html}
AEA notes progress on environmental issues Spring ushered in changes on several environmental issues on the state and federal levels, members of the Agriculture Environmental Alliance (AEA) learned last week. AEA, a subgroup of the Illinois Agricultural Legislative Roundtable, discussed a spectrum of issues after the roundtable concluded its meeting on the Ken Dalenburg farm near Mansfield. The Illinois Department of Agriculture (IDOA) is seeing increased use of and registration for Driftwatch, a website that links pesticide applicators with pesticide-sensitive fields. The website is {www.driftwatch.org} for the voluntary program aimed at protecting pesticide-sensitive crops
and preventing pesticide drift from occurring. Warren Goetsch, head of IDOA’s bureau of environmental programs, said nearly 500 pesticide-sensitive entities, such as beekeepers and specialty growers, have registered their locations on the website that was launched late last year. Last week, registrants added 18 new locations, including 12 apiary operations, a vineyard, a Christmas tree farm, and a fruit farm, Goetsch noted. On a related matter, IDOA has received fewer pesticide-misuse complaints this year compared to the same period in previous years, Goetsch noted. Of the 29 complaints that were received and processed to date, IDOA determined there was no
misuse in two cases and they were dismissed, he said. On average, 40 percent to 50 percent of complaints are dismissed because no misuse occurred, according to Goetsch. Ag groups also are working on a new statewide strategy for nutrient management. The goal is to develop a program to help farmers and provide them with information. The Council for Best Management Practices hopes to launch the strategy in late summer or early fall. Nutrient management will be in the spotlight as the spring floods are expected to increase the size of the hypoxia zone in the Gulf of Mexico. IDOA will represent Illinois when a national hypoxia task force meets Aug. 13 in Louisiana. — Kay Shipman
FARM BUREAU FACEBOOK FRIENDS Illinois Farm Bureau Young Leader Committee members, standing left to right, Jeff Heinsohn of Harvard and Mike Carey of Morris, help Paw Paw FFA members Nate McKee, left, and Sam Dunklau become Facebook friends with Illinois Farm Bureau. During last week’s state FFA Convention, the Young Leaders used social media to promote Farm Bureau and the Young Leaders through Facebook. “We hope they (FFA members) get curious later on and want to learn more through Facebook,” Heinsohn said. (Photo by Kay Shipman)
FMCSA Continued from page 1 have on job growth and economic competitiveness before further burdening America’s job creators.” Rund explained some Illinois farmers had failed the new entrant audit because of one or more of those three interpretations. In some cases, action needed to comply with the requirements would have cost
farmers a considerable amount of money. Under the new audit approach, farmers who fail the audit because of one of those factors will have their audit report “shelved” pending the outcome of the FMCSA review, Rund said. If current interpretations are changed, the audit report also will be changed to reflect
the newer standards before being submitted to the U.S. Department of Transportation’s tracking system. “This appears to be a good temporary measure,” Rund said. “It allows IDOT to continue to work on the more than 48,000 audit backlog but gives farmers the benefit of the doubt on pending changes to the interpretations.”
Page 3 Monday, June 20, 2011 FarmWeek
ROUNDTABLE
Ag Legislative Roundtable immerses in dairy issues BY KAY SHIPMAN FarmWeek
The Illinois Agricultural Legislative Roundtable for the first time last week immersed its members in the issues faced by one ag industry sector. The group’s crash course on the dairy industry started with a tour of the state’s largest dairy, Stone Ridge Dairy, near Bellflower in McLean County, and then moved to the Ken Dalenberg Farm in Mansfield for an in-depth discussion. The roundtable is comprised of more than 50 agricultural organizations, universities, agribusinesses, and state and federal government agencies and representatives. “This is an opportunity for the Ag Roundtable to see firsthand and to focus on the challenges facing the dairy industry,” said Illinois Farm Bureau President Philip Nelson. “It dawned on me during our discussions that some people didn’t know what we were talking about and hadn’t been on a dairy farm before,” Nelson added. Roundtable members were exposed to the state-of-the-art dairy technology and management systems used by George Kasbergen on his family dairy farm. “You’ve just seen 3 percent of all the dairy cows in Illinois,” retired University of Illinois dairy professor Mike Hutjens told roundtable members during a farm tour. Given today’s technology and economic factors, the most efficient dairy would have between 4,000 and 5,000 cows, Kasbergen estimated. Stone Ridge Dairy
milks 3,200 cows. Siting a facility is another challenge for some dairy farms, and Kasbergen faced his share of controversy when he moved from California. “The siting controversy quieted down after I physically moved here,” Kasbergen told roundtable participants. “It showed we were real people.” He said his family now gets along with neighbors who had been involved with a lawsuit against his dairy. Social issues also are having a big impact on the state’s dairy industry and potential new operations, reported Nic Anderson of Illinois Livestock Development Group. “The 3,500 (-head) herd is the optimum efficient size now, but it’s not the size of farm that we’re used to,” Anderson said. Anderson has one word for individuals who are concerned about the care given dairy cows — performance. Cows that receive good care are those that are highly productive. Kasbergen’s herd ranks sixth in Illinois for highest average milk production, according to the U of I’s Hutjens. “People don’t give enough credence to the relationship between performance and animal care,” Anderson said. Anderson urged roundtable members to support dairymen, such as Kasbergen, and to share information about the state of dairy farm technology if new dairy farms are proposed in their communities. The current economy is another challenge facing the dairy industry, according to
Above: Stone Ridge Dairy employees prepare some of the 3,200-cow herd for milking during a tour last week by the Illinois Agricultural Legislative Roundtable. The McLean County dairy near Bellflower is the state’s largest dairy and uses state-of-the-art technology. Right: George Kasbergen, right, owner of Stone Ridge Dairy, explains his milking parlor technology to Kevin Johnson, left, a district aide for U.S. Rep. Tim Johnson (R-Urbana); Illinois Farm Bureau board member J.C. Pool, IFB Vice President Rich Guebert Jr., and other members of the Agriculture Legislative Roundtable. (Photos by Kay Shipman)
Ed Mullins, chief executive officer for Prairie Farms Dairy. Mullins explained the economy and high fuel prices are causing some consumers, especially families who make $50,000 a year or less, to limit the amount of milk their children drink and to buy fewer dairy treats. For example, milk sales at Aldi grocery stores are down 10 percent, he added. The dairy processing industry also is feeling the impact of
higher pump prices. Prairie Farms has paid $4.7 million more in gas and diesel costs this year compared to last year, Mullins noted. On a brighter note, Prairie Farms is looking into new dairy products and new corporate market opportunities, according to Mullins. “We’ll continually look for opportunities to grow,” he said. An explosion of menu items featuring cheese, yogurt, and milk is coming to several
fast-food restaurants, said Marla Behrends with the Midwest Dairy Association. “McDonalds (is) a huge fan of the dairy industry,” Behrends said. She listed several new sandwiches and other menu items that will feature dairy products. The pizza industry also is promoting and selling more cheese, including a new pizza product that will be offered in school cafeterias, Behrends said.
Jennings assesses IDOA post-legislative session
McLean County dairyman George Kasbergen, third from right, explains to the Illinois Agricultural Legislative Roundtable how he transports milk from Stone Ridge Dairy, near Bellflower, to Prairie Farms Dairy plants across the region. Kasbergen has sold all his milk to Prairie Farms for the last two years. (Photo by Kay Shipman)
The Illinois Department of Agriculture (IDOA) received its share of cuts in the budget passed by the General Assembly and awaiting Gov. Pat Quinn’s signature, the Illinois director of agriculture reported last week. IDOA received an overall 5 percent cut in Tom Jennings general revenue funding and a 7.5 percent reduction in funding for contractual services, Tom Jennings told the Illinois Agricultural Legislative Roundtable when it met last
week in McLean County. Jennings added he and his staff had reminded lawmakers that IDOA had undergone major funding cuts in previous state budgets. In the fall veto session, IDOA will attempt to obtain funding for operations and maintenance for state fairgrounds in Springfield and DuQuoin, according to Jennings. “It’s crucial we get that in the budget,” he said. Jennings also started his own get-out-the-vote campaign for the upcoming elections for commodity boards. Eligible farmers need to vote for directors running for their respective commodity boards, the director said. — Kay Shipman
FarmWeek Page 4 Monday, June 20, 2011
GOVERNMENT
House blocks GIPSA rule, defeats income limit BY MARTIN ROSS FarmWeek
The U.S. House last week knocked down proposals to set new income limits for farm program recipients and slash funds for an important export promotion program. Farm Bureau, meanwhile, challenged “defunding” of new Grain Inspection, Packers, and Stockyards Administration (GIPSA) livestock marketing rules and removal of funds for ethanol fuel infrastructure in fiscal 2012 ag spending legislation. The $17.3 billion House appropriations measure squeaked through on a 217-203 vote. The House scrapped Rep. Jeff Flake’s (R-Ariz.) proposal to set an $250,000 annual adjusted gross income (AGI) limit for farm program eligibility. The current limit is $500,000 in AGI from off-farm sources or $750,000 in on-farm income. Sen. Tim Johnson (D-S.D.) and Senate Finance Committee ranking Republican Chuck Grassley (R-Iowa) have introduced a similar measure. Illinois Farm Bureau National Legisla-
tive Director Adam Nielsen questioned the “timing” of Grassley, also a Senate Ag Committee member, in supporting limits as House ag lawmakers fought to prevent a premature “reopening” of the 2008 farm
FarmWeekNow.com Listen to correspondent Matt Kaye’s report on congressional action on ag spending at FarmWeekNow.com.
bill. “We’ve been adamant over the past week that we didn’t want to rewrite the farm bill on the floor,” Nielsen stressed. “We’re happy House Ag Chairman (Frank) Lucas (R-Okla.) was able to get the AGI amendment stripped out.” The House also rejected Rep. Earl Blumenauer’s (D-Ore.) proposal to cap annual amounts for direct payments, counter-cyclical payments, loan deficiency payments, and marketing loan gains at $125,000 per crop year. Arizona’s Flake also lost a bid to eliminate funding for the popular Market Access Program,
which helps producer groups promote products overseas. Lucas nonetheless failed to overturn an amendment that would suspend payments to the Brazil Cotton Institute agreed upon in response to a World Trade Organization ruling upholding Brazil’s complaint against U.S. cotton programs. That “throws the settlement up in the air,” opening the door to potential Brazilian trade retaliation, Nielsen warned. Also controversial was approval of an amendment to deny near-term funding for proposed GIPSA rules. National Pork Producers Council President Doug Wolf argued the move would force USDA to “take a time out” and re-examine proposals that would require packers to file “cost justifications” for price premiums, increase packer/producer liability, and purportedly cost the “pork supply chain” an annual $333 million-plus. “It’s going to cost us a ton of money and ruin what we’ve spent years and years trying to develop for our businesses and
consumers in this country,” National Cattlemen’s Beef Association immediate past president and Illinois producer Steve Foglesong said, charging the new rules constitute “government overreach.” The American Farm Bureau Federation (AFBF) opposed the defunding proposal. AFBF wants USDA to complete economic analysis of the proposed rule and review the 60,000 comments it received on the rule in order to gauge its broad industry impact. The House package
includes key cuts in rural research, development, and domestic and foreign food aid programs. House Ag Committee member Tim Johnson, an Urbana Republican, sees wide-ranging cuts as “necessary to get us back on the path to fiscal sanity,” but reported committee review of specific cuts is “virtually certain.” Johnson told FarmWeek his committee soon was likely to schedule a farm bill field hearing in Illinois to address policy and budget priorities.
Prospective pennycress producers being recruited With an application for federal “biomass” support now filed in Washington and a healthy supply of fresh seed on hand, Pennycress Partners Inc. (PPI) is seeking Illinois farmers to launch large-scale production of the new energy oilseed crop. The venture hopes to contract 10,000 acres to seed in a late August/September timeframe. PPI completed its seed harvest earlier this month, and seed is being cleaned now in preparation for fall planting. The overwintering crop is being raised as a renewable diesel fuel source. One of pennycress’ major appeals is it can be grown outside the spring crop cycle. The firm drew seedstock from roughly 300 Central Illinois acres — more was planted last fall but failed to germinate with a lack of rain after mid-September. But even with cold spring weather, PPI head Brad Glenn noted 2010-planted fields were ready for harvest by June 8. Glenn and company are requiring a minimum 40-acreper-farmer planting commitment, “to keep (harvest) trucking economical,” he told FarmWeek. “These are probably corn (acres) farmers are going to soybeans with, because they’re not going to want to plant corn June 8,” Glenn suggested. “And we think that’s probably going to be June 1 next year, if we get a warmer spring than what we experienced this year. “And it’s going to be an early adopter — someone who likes to experiment and try new things and who has the patience to work with a new crop. It’s not going to be for everyone.” PPI was formed by the Ag Guild of Illinois, a 50-farmer group that controls 130,000plus Central Illinois acres. PPI is one of two Illinois candidates for fiscal 2011 Biomass Crop Assistance Program (BCAP) “project area” funding, as
selected recently by the USDA Farm Service Agency. BCAP is designed to help prospective alternative energy crop producers and processors develop commercial production/supply chains. Amid a federal focus on energy woody materials and higher-profile crops such as switchgrass, Glenn is hopeful the novelty of pennycress would appeal to USDA’s stated desire for a “diversity” of biomass sources. USDA is expected to pick recipient projects this month. “We’re cautiously optimistic,” Glenn said. — Martin Ross
Wanted: Pennycress producers Farmers can investigate the potential of pennycress production at the following producer meetings being conducted by Pennycress Partners Inc.: Thursday, Macomb: 7:30 a.m., The Old Dairy, 210 South Lafayette, phone 309-837-6700 June 28, Beardstown: 7:30 a.m., Café From Yesterday, 112 East 2nd Street, 217-323-3887 July 1, Peoria: 7:30 a.m., Peoria County Farm Bureau, 1716 North University, 309-6867070 July 5, Jacksonville: 7:30 a.m., Hamilton’s, 110 N. East Street, 217-675-2720 July 6, Knoxville: 7:30 a.m., Inness Farm Supply, 506 Knox Highway 10, 309-342-2659 July 8, Decatur: 7:30 a.m., Decatur Conference Center and Hotel, 4191 U.S. 36 West (Wyckles Road), 217-422-8800 July 12, Bloomington: 7:30 a.m., C.J.’s, 2901 East Empire, 309-663-4444 July 13, Raymond/Carlinville: 7:30 a.m., Magnuson Hotel, 19067 West Frontage Road, 217-324-2100 An RSVP to attend is not required but would help in planning meetings. For information or to RSVP, e-mail Brad Glenn at brad@arvenstech.com or call him at 309-275-7178.
Page 5 Monday, June 20, 2011 FarmWeek
RURAL ILLINOIS
Johnson displeased with Obama’s Rural Council BY MARTIN ROSS FarmWeek
While a new White House Rural Council sounds good in principle, the chairman of the House Ag Committee’s rural development subcommittee fears it ultimately could prove “to the detriment of every small community in Illinois.”
U.S. Rep. Tim Johnson argues President Obama superseded his authority with an executive order authorizing the council. The interagency council is charged with “increasing the flow of capital to rural areas, promoting innovation, expanding digital and physical networks, and celebrating
Networks, policy support key to survival in ‘dynamic times’ Illinois Hospital Association (IHA) President Maryjane Wurth acknowledges “a very dynamic time in American health care” — “certainly in Illinois, and, most importantly, in our rural communities.” The “advent” of contentious federal health care reform, Illinois’ fiscal crisis, and the growing push to improve the quality of care while lowering costs are “impacting all our hospitals around the state,” Wurth told FarmWeek at IHA’s Small and Rural Hospitals annual meeting last week in Springfield. That impact is even more dramatic for the state’s rural hospitals and the communities that depend on them for more than just health care, she suggested. Some are continuing to thrive amid community support and new technologies and area partnerships, while others “are, frankly, on the edge of being able to make it financially,” Wurth said last week. “Our rural communities have been hit hard economically,” she stressed. “The population tends to be older; it tends to be more economically disadvantaged; it tends to have a higher degree of chronic conditions than in urban or suburban areas. That creates a complexity in the types of services our rural hospitals have to put together. “As money dwindles down from government, we need to make sure we continue to have a very strong, viable rural health care system. (Hospitals) are often the largest employers in many counties. A strong hospital’s key to being an anchor for economic redevelopment and vibrancy within our communities.” Illinois’ 51 smaller critical access hospitals (CAHs) are key to ensuring basic services to remote communities. IHA thus seeks passage of the Rural Hospital Protection Act, sponsored by U.S. Reps. Ron Kind (D-Wis.) and Sam Graves (R-Mo.), which would overturn a U.S. District Court decision rejecting Medicare reimbursements for hospital taxes. The court upheld the U.S. Centers for Medicare and Medicaid Services’ (CMS) position against allowing tax reimbursements. Twenty-six Illinois hospitals challenged the CMS’ decision — Wurth held reimbursement policies are “very critical,” especially to financially at-risk hospitals. Rural providers are “operating on thin margins” and facing increasing pressure on several fronts, including workforce shortages, greater demands for services as baby boomers age and health reforms are implemented, and cuts or delays in Medicare/Medicaid reimbursements, IHA notes. Wurth sees current federal health reform as a mixed bag, but hopes federal agencies will come through with “the good parts of the bill” — demonstration projects, grants, and other incentives for CAHs and other rural hospitals. However, those initiatives are “just getting started,” she noted. Recognizing Medicare is vulnerable to deep deficit reduction cuts, Wurth admonishes lawmakers to “be very thoughtful about how savings in Medicare and Medicaid are achieved,” rather than “simply reducing (provider) payments.” “Our message is, continue to recognize the unique issues that are facing hospitals in our rural communities, and make sure access is maintained,” she advised. “That means there needs to be a network of providers — there needs to be hospitals, home care services, physicians, support mechanisms to get physicians and other workers in our rural communities. Most importantly, we need to make sure there’s an appreciation for the additional cost of meeting the needs in our rural communities.” — Martin Ross
opportunity through America’s natural resources.” Johnson, an Urbana Republican, questions Obama creatRep. Tim Johnson ing what he views as a new administration “fiefdom” without congressional approval or limits on prospective council spending. Neither Johnson nor House Ag Committee Chairman Frank Lucas (R-Okla.) were consulted regarding the council’s creation. Further, he is concerned the council may attempt to “tremendously expand” the scope of existing “rural” programs to benefit larger or even suburban/urban communities. Johnson recently convened a subcommittee hearing focusing on the definition of “rural” — a definition which cur-
rently varies among federal agencies and even USDA programs. He noted an unprecedented number of “strictly urban” lawmakers are now on the Ag Committee, some seemingly inclined toward expanding the “population base” of “rural” areas and tweaking criteria for “rural development” to benefit their home districts. Obama’s executive order directs the council to coordinate efforts “directed toward the growth and development of geographic regions that encompass both urban and rural areas.” Given anticipated budget constraints, the council could divert key USDA funding from truly rural communities that already are “always on the cusp” of federal interest, Johnson told FarmWeek. “I believe there’s a clear direction in this administration to diminish the definition of ‘rural’ and our role as advocates for rural America,” he
said. “One of my great concerns about creation of this Rural Council is that it will take America further and further in this direction. “There are only a limited number of dollars to go into various programs, including rural development. In fact, we expect further budget cuts in the near future. “If we take that limited number of dollars and expand it to suburban New York City or suburban Hartford, Conn., or Providence, R.I., or Chicago, Ill., then we’ve done tremendous damage to programs in Mt. Zion and Jerseyville and Mt. Carroll.” Johnson argues the Rural Council’s mission is, “at the most charitable, duplicative” of House/Senate Ag Committee scope. Current statutory criteria for rural jurisdictions “are not only adequate but meets needs very well, if it is enforced the way it should be,” he maintained.
FarmWeek Page 6 Monday, June 20, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Moderate temperatures with rain Tuesday night and Wednesday gave us excellent growing conditions last week. We had just below an inch for the week, so far, but the east side of the county recorded 3 inches in the middle of the week. There was lots of spraying of herbicides early last week, as the corn, beans, and weeds all are growing very fast. The wheat is slowly turning color and looks good so far. There were a lot of wheat fields destroyed by hail two to three weeks ago that were replanted, mostly to soybeans. Have a good week and stay safe. Pete Tekampe, Grayslake, Lake County: A beautiful day in Lake County Friday morning. We had 0.4 of an inch of rain for the week, but it is very cloudy with not much sun. Most of the corn is yellow and needs sun. Very little is knee-high and canopying. Most of the beans are planted, but there might be some spotplanting in the wet spots. The later-planted beans are generally better than the earlyplanted. Winter wheat is turning fast and looking good. Some hay has been cut, but what is left is all tangled up. Spring grains are looking better. Warmer temperatures are expected this week with rain five of the seven days. I hope they are wrong about the rain. Leroy Getz, Savanna, Carroll County: Rain on Friday and Saturday (June 10 and 11) amounted to 0.95 of an inch. Then we received 1.6 inches of rain on Wednesday. June total is now 3.45 inches. Corn has really grown and has a very dark green color. The tallest is 2 to 2.5 feet tall. Sprayers were busy the first of the week before the rain on Wednesday. Wheat is turning color and oats are heading out. Hay making has been very poor. I have had 702 growing degree units. Ryan Frieders, Waterman, DeKalb County: The fields finally are starting to dry out after the big rain the week of June 5 through 12. There still are some fields that have not been planted in the area. Most of the replanting that was done once is a loss again. I got 0.5 of an inch of rain on Wednesday. We really need to be spraying herbicides. The weeds are getting very large in both corn and soybeans. We also need to finish side-dressing nitrogen. The forecast is for rain every day for this week. Larry Hummel, Dixon, Lee County: Last week’s rains and warmer weather have the majority of the crops looking good. The minority, on the other hand, is anemic. That includes areas that have stayed wet too long and whole fields that still are waiting for that sidedress applicator to come along and give them a needed boost of nitrogen. Things are far from perfect here in Lee County. We are falling behind on spraying soybeans. The rains are spaced just far enough apart that the ground doesn’t get a chance to dry out. I shouldn’t complain too much, though, as I look out my office window across a field of dark green corn at the V-6 stage. Like I said — the majority looks good. Ron Haase, Gilman, Iroquois County: Monday and Tuesday of last week planting and replanting continued, as well as spraying herbicides and sidedressing nitrogen. This was brought to a halt by the Wednesday morning rain. We received anywhere from 1.15 inches up to 1.75 inches. We were able to return to sidedressing nitrogen on Saturday (June 11). We finished our last field at 2:30 a.m. on Wednesday, just an hour and a half before the big rain. My brother and I are now waiting for the soil to dry to begin our second herbicide application. Corn growth in the area ranges from the V-2 to the V-8 growth stage. Most corn is in the V-5 to V-7 growth stages. Soybean growth ranges from emergence up to the V-5 growth stage. Local closing bids for June 16: nearby corn, $7.01; new-crop corn, $6.20; nearby soybeans, $13.57; new-crop soybeans, $13.17.
Joe Zumwalt, Warsaw, Hancock County: A lot has changed in the past two weeks. Last week I received 14 to 16 inches of heavy rain. Fields and roads are flooded the likes of which can only be compared to a levee break. Thousands of acres of V-8 corn and three-trifoliate soybeans will be lost before our pumps will be able to catch up. A quick measurement of the water over one field of soybeans showed 46 inches. Light ground looks good, but most crops are really showing the stress of too much rain or severe hail damage. I joked Thursday that only half of my corn had hail damage — the other half was under water. Let’s hope and pray for drier days ahead. Ken Reinhardt, Seaton, Mercer County: I had 3 inches of rain last week. There was less rain to the north and some sprayers were running by Thursday afternoon. The custom guys have had about five suitable days so far to post-spray corn, and the application window is rapidly closing. The planes are staying busy sidedressing areas and spraying Roundup on corn. Not all of the bottom ground around Keithsburg was planted again for the third year in a row. It is going to be too late to replant in the Edwards River bottom if we get much more rain. Brian Schaumburg, Chenoa, McLean County: A mostly quiet week with 1 to 2 inches of rain and mild temperatures that have crop ratings at good to excellent. Farmers could get used to this trend. Post-spraying and sidedressing are nearly complete. Wheat is turning. World economic concerns and demand erosion are topics of conversation. Corn, $6.95; $6.11, fall; soybeans, $13.55; $13.05 fall; wheat, $6.13. Steve Ayers, Champaign, Champaign County: 0.8 of an inch of rain fell Wednesday in an early morning storm that had scattered reports of wind and hail. Nature put on quite a light show and some of the thunder shook the house. We seem to be in a garden spot with corn and soybeans growing rapidly. Preemergence herbicides seemed to work well, but the wet weather is pushing the envelope, especially for spraying corn. USDA has our crop reporting district at 100 percent corn planted with 98 percent emerged and soybeans 97 percent planted with 79 percent emerged. Let’s be careful out there. Wilfred Dittmer, Quincy, Adams County: Another wet week in our little corner of the state with our gauge picking up 5.7 inches of rain with 5 inches of that coming on Monday night (June 13). So our corn and soybeans certainly could use a little drying out. Overall, crops are doing as good as they can, and I think there may still be some soybeans to get seeded since it has been raining about every other day. A lot of corn already is above knee-high and there is very little insect activity. Later-planted beans are pushing to emerge. Have a safe week. Todd Easton, Charleston, Coles County: The fields keep getting greener and taller here in Coles County, as last week brought us a couple of mostly mild rain showers that fueled the rapid development of the young crops. Note that I said mostly mild, as the Wednesday showers were considerably harsher in the southern part of the area and caused another round of pond filling in the low areas. Cornfields are growing at an astonishing rate with some of the earliest fields almost at V-8 development, and many of the May-planted fields have closed their canopy. Soybean fields are getting greener with good stands and in some fields grass. Not surprising with the ample moisture, sprayers are making their rounds in the beans a bit early, which may mean a two-pass year for weed control. Wheat fields have all transitioned from green to almost golden and look much better than I previously figured they would. Combines should be able to do their job in the crop around July 4 as normal.
Tom Ritter, Blue Mound, Macon County: Last weekend (June 11-12) brought in 1-2 inches of rain and some isolated spots up to 5 inches followed by another 3.3 inches with two days of rain last week. More rain was forecast through last weekend. We are at 100 percent saturation with a lot of ponding and a lot of concern that the standing water with 90 degree temperatures forecast for early this week could do some major damage, especially to the corn in those ponded areas. Needless to say, there was no field activity, but corn continues to grow with good color. Soybeans also are growing, but saturation levels may be starting to take a toll on these crops. Overall, if we can get rid of water and let the drainage do its work, we still are set for a very good crop. Ted Kuebrich, Jerseyville, Jersey County: It was a very stormy week in Jersey County with thunderstorms and a total rainfall of 2.5 inches. Once again, there is water standing in between corn and bean rows. The corn around my house is really growing and the color is a very dark green. The crops are looking good and growing with all the moisture that we have received. The local service company was out Thursday spraying Roundup on beans. Prices at Jersey County Grain, Hardin: cash corn, $6.93; fall corn, $6.19; cash beans, $13.53; fall beans, $12.97; June/July wheat, $6.70. Dan Meinhart, Montrose, Jasper County: On Friday, June 10, rains moved through the area, and rainfall varied widely from 1 inch up to 4 inches in isolated areas. Heavy winds accompanied those storms in some locations. Showers began on Tuesday and persisted almost every day since. Cooler temperatures prevailed during the week. Planting is pretty well wrapped up. Wheat harvest has begun where conditions permitted. Other field activities last week included spraying post chemicals and sidedressing corn where soils permitted. Hot temperatures were expected to return over the weekend. Dave Hankammer, Millstadt, St. Clair County: Rain moved through the area on the evening of June 10, leaving as much as 2.25 inches near the west end of Belleville. The rain front ushered in cooler temperatures for the week, ranging from 70 degrees in the evening to highs in the low 80s. Unfortunately, the rainfall wasn’t uniform throughout the county, with the southern part receiving very little and the northern part much more. Post herbicide application was done on some of the corn in the area, as well as some anhydrous sidedressing. The corn crop is looking good overall with the exception of wet spots in some fields. Time and warm weather will correct the majority of stunted areas. Most of the soybeans in the area are planted and emerged. Although, there still are fields waiting to be planted. Farmers in my area resumed planting soybeans on Thursday. We are dealing with a creek bottom that still is on the wet side and needs sunshine and warm temperatures to dry out. Some farmers started harvesting wheat on Thursday. The grain moisture was at 14 percent, according to an on-farm moisture tester. No report on the yield or quality of grain. Local grain bids: corn, $6.86; soybeans, $13.46; wheat $6.58. Have a safe week. Rick Corners, Centralia, Jefferson County: Cancel the order for rain for now. Since my last report, when I was wanting a shower, we’ve had almost 4 inches of frog-drowning deluges. Well, maybe we need a shower to keep the ground soft so some of the beans that were plastered to the ground might have a ghosts chance of coming up. I doubt it, though. Everyone seems to be kind of weary after struggling to get stuff planted. It’s really disgusting when you have to do two months worth of work in 10 days. Am I just getting to be an old geezer, or did we used to have a lot more time to get things done? Wheat harvest is right around the corner.
Page 7 Monday, June 20, 2011 FarmWeek
CROPWATCHERS Ken Taake, Ullin, Pulaski County: It was another busy week here in deep Southern Illinois. Hot and dry seems to be the order. We really could use a shower. Main activities have been cutting wheat and planting double-crop soybeans. We started cutting wheat on Wednesday, and it is doing really well considering earlier in the year we had pretty much given up on it. Quality seems to be good and yields are running much better than we expected. Planting double-crop soybeans is a challenge because the ground is dry and hard. We sure could use a shower to help get them up. David Schaal, St. Peter, Fayette County: We received 1.75 inches of rain since last report. We had a little wind with it that leaned some of the taller corn. Places in the county had more rain along with hail. For the most part, crops look pretty good. Corn is anywhere from 3 to 4 inches tall to knee-high. Soybeans range from emerging to 6 inches. Wheat harvest is right around the corner or will be started by the time this is printed. Grain markets took it on the chin last week with corn losing more than 80 cents.
Kevin Raber, Browns, Wabash County: There were several rains last week. It seems to be getting into a summer pattern. Some areas got a flood and other places just barely enough to measure. Crops are growing nicely, but as I’ve been spraying, I have found a lot of drowned-out holes in my field. Wheat harvest could start this week if we get some sunny, dry days. Randy Anderson, Galatia, Saline County: What a difference a nice, cool, and moist week can make. We received 1.3 inches of rain last week and crop development really turned around. I would give our corn crop a rating of 10 percent good to excellent, 70 percent good to fair, and 20 percent poor. Soybean crop ratings mostly are fair to good, but there are many fields with some poor stands from the dry weather. Hopefully, the rain we received will fill in the holes in the fields. Wheat cutting is starting to progress. Yields have been better than I expected. Test weights and quality of the wheat has been very good. However, I do have corn tasseling – sweet corn. Hopefully, it will be ready for the Fourth of July.
Dean Shields, Murphysboro, Jackson County: Last week we had scattered showers and thunderstorms. Some areas got as much as 1 inch and some areas didn’t get much at all. If you planted in the areas that didn’t get much rain, you are having difficulty getting the beans to come up. We are still in the flooding situation in my area. The Mississippi River is still high and we still have about 800 acres under water. The corn seemed to really take off last week. A lot of dark green corn and looks pretty decent. The beans are growing, too, and I’ve even seen a few guys starting to spray the second time. Wheat harvest is in full swing. I think the best I can pick up from the farmers is that the quality and yields are pretty good. All we need now is a lower river and a little bit more rain in Jackson County. Jackson County as a whole seems to be getting along pretty well. Take care farming and keep cool.
Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Illinois planting nearly done
Development of crop can be tracked at SoyCam.com BY DANIEL GRANT FarmWeek
Planting nearly is complete in Illinois as 99 percent of corn and 96 percent of soybeans were in the ground as of the first of last week. And those interested in the soybean crop can continue to follow its development all season. And Illinois Soybean Association (ISA), through funding from the Illinois soybean checkoff, is in its second season of offering producer photographs and updates about the crop online at {www.SoyCam.com}. Ten geographically scattered Illinois soybean growers will post photos and information about their crop all sea-
son. There also is information and photos from last year’s crop as well as contributions from the Mato Grosso Soybean and Corn Producers Association in Brazil posted at the site. “SoyCam provides great value to other growers, students, and consumers,” said Pat Dumoulin, ISA District 2 director from Hampshire and a contributor to SoyCam. “They can see how and why certain farming decisions are made while also gaining insight into how Illinois farming operations really work.” Tim Scates, a soybean grower from Shawneetown and a SoyCam contributor, documented the spring floods in Southern Illinois on the
Farmers still can run for ISA director positions Soybean growers interested in becoming a district director for the Illinois Soybean Association (ISA) still have time to get their names on the ballot. The deadline to apply for five open ISA district director positions passed on May 15, but farmers still can seek election by becoming write-in candidates. Interested farmers should request a write-in candidate application from the Illinois Department of Agriculture. The applications must be notarized and returned by June 28. The five Illinois districts where write-in ballots are available are District 1 (Jo Daviess, Stephenson, Winnebago, Boone, Carroll, Ogle, DeKalb, and Lee counties); District 5 (Knox, Peoria, Marshall, Putnam, Fulton and Tazewell counties); District 7 (Ford, Iroquois, and Vermilion counties); District 12 (Pike, Scott, Calhoun, Greene, Macoupin, and Jersey counties); and District 13 (Montgomery, Bond, Fayette, and Marion counties). The election will be held July 6. For more information, contact ISA at 309-663-7692 or visit the
website. His property near the Ohio and Wabash Rivers was covered by water that was about four feet deep. Most of the water receded in recent weeks, and last week Scates nearly was finished replanting beans. “We lost probably 2,000 acres (of early-planted beans along with about 20 to 30 per-
cent of the wheat crop),” Scates told FarmWeek. “We replanted about 2,200 acres. We’re about 98 percent finished (as of last week).” Scates plans to plant some double-crop beans once he harvests his high-ground wheat that survived the flood. Overall, he estimated he’ll have about 1,500 fewer acres of corn this year because of
the flood, drowned out fields, and planting delays. “We had to change our crop rotation,” he said. “It’s one of those years where we had to roll with the punches.” Scates the rest of the season will document on SoyCam the growth of an irrigated soybean field. “It’s a good way for the average person to see the growing process,” he said of SoyCam. “They can see that more goes into it (producing a bean crop) than putting it in the ground and coming back to harvest it.” Other SoyCam contributors from Illinois this year are Bill Wykes, Yorkville; Braden Thomas, Manito; Mark Sprague, Hull; Nick Wurl, Urbana; Rob Shaffer, El Paso; Ross Prough, Greenfield; Rowen Ziegler, LaHarpe; and Sherri Kannamacher, Martinsville.
Illinois projects receive conservation grants BY KAY SHIPMAN FarmWeek
Two projects intended to help Illinois farmers reduce greenhouse gas emissions have been awarded USDA Conservation Innovation Grants (CIG). The two projects were among nine selected nationwide for nearly $7.4 million in funding for implementation in 24 states. The grants are administered by the Natural Resources Conservation Service (NRCS), which also will provide an estimated $10 million through Environmental Quality Incentives Program (EQIP) for farmers to implement conservation practices that reduce greenhouse gas emissions.
A multi-state project will receive $400,000 to reduce nitrous oxide emissions through nutrient management in Illinois, Oklahoma, and Michigan. As part of the project, the Conservation Technology Information Center (CTIC), Oklahoma State University, Oklahoma Conservation Commission, and Delta Institute will hold educational meetings to inform farmers about nutrient management and economic and marketbased opportunities. The Fertilizer Institute will receive $1.428 million for a smart nitrogen application demonstration project in Illinois and Iowa. A newly created program will encourage farmers to
become more productive and use nutrients more efficiently by applying best management practices and using carbon credits. The project will help create a streamlined Smart Nitrogen Application Program (SNAP) to deliver carbon credits to the marketplace. The goal is to develop a self-perpetuating program to help farmers create and sell credits into both voluntary and compliance carbon markets. CIG projects seek to stimulate development, adoption, and evaluation of innovative methods and technologies to reduce greenhouse gas and to increase carbon sequestration on agricultural land.
FarmWeek Page 8 Monday, June 20, 2011
THE CONSUMER
‘Agvocate’ uses social Veterinarian: Ban on select antibiotics media to reach consumers could backfire BY DANIEL GRANT FarmWeek
Eliminating use of preventive antibiotics in food animal production likely would not lower the risk of antibiotics resistance in humans, according to Howard Hill, veterinarian with Iowa Select Farms. In fact, livestock producers actually could end up using more antibiotics to treat sick animals if proposed legislation to ban preventive antibiotics is enacted. “It’s very important to prevent and control diseases to maintain the health of pigs,” Hill, a board member of the National Pork Producers Council, said this month at the World Pork Expo in Des Moines. Pork producers in Denmark reported increased outbreaks of some diseases in swine herds after the use of antibiotics in feed was banned there, according to Hill. “When they banned the use of antibiotics in feed in Denmark, one of the diseases that really raised its ugly head was ileitis,” he said. “They ended up having to use more antibiotics to treat it.” Preventive antibiotics also are extremely important to control scours (enteritis), a leading killer of baby pigs, the veterinarian noted. “Pork producers recognize they have a moral obligation to provide for the well-being of their animals and to provide safe, nutritious meat products for consumers,” Hill said. But maintaining the quality of pork products could be more of a challenge without antibiotics, he said. A study conducted at Iowa State University found that when a pig has been sick at some point in its life, there is a greater presence of food-safety pathogens on its carcass. Antibiotics are used in swine to prevent, control, and treat diseases and for nutritional efficiency. All antibiotics used in swine production are approved for animal and human safety by the Food and Drug Administration. Elsewhere, South Korea’s new restrictions on antibiotics will not affect U.S. pork exports, according to Liz Hagstrom, National Pork Board assistant vice president of science and technology. “They’re banning commercial feed mills (in South Korea) from producing medicated feeds,” Hagstrom said. “(South Korean) farmers still can buy it over-the-counter and mix it on their farms.” South Korea will continue to monitor for traces of residue on imported meat. The U.S., however, has withdrawal times for antibiotics use that prevent issues with residue, Hill said. The enactment of a free trade agreement with South Korea eventually could increase U.S. hog prices by about $10 per head, he added.
N. Illinois small grains program slated Wheat management and wheat and oat variety selection will be covered in depth Thursday at the small grains program at the University of Illinois Northern Illinois Agronomy Research Center, located near Shabbona. The event will begin at 5:30 p.m. U of I oat and wheat breeder Fred Kolb will discuss oat and wheat variety development for Northern Illinois. U of I Extension crops specialist Emerson Nafziger will present information on the 2011 Illinois wheat crop and the best management practices for small grain management. Carl Bradley, assistant professor of plant pathology and U of I Extension specialist, will talk to the group about wheat disease management. The meeting will provide an opportunity to see the varieties and different management techniques in some of the research trials at the center. The program is being co-sponsored by the Illinois Wheat Association (IWA), the University of Illinois Extension, and USDA Risk Management Association. There will be a $5 per person charge for a grilled pork chop meal. To help with the meal count, register in advance by contacting the IWA office at 309-557-3619 or e-mail cblary@ilfb.org. The U of I Northern Illinois Agronomy Research Center in DeKalb County is one mile east of Shabbona on Route 30, then 5.5 miles north on University Road.
Nate Taylor, a board member of the AgChat Foundation and partner in the company Intellicrop from Sycamore, enjoys meeting and working with farmers and others in the ag industry. But when it comes to telling the story of agriculture, Taylor typically is more interested in chatting with the 98 percent of the U.S. population that has no link to farming. “I love to talk to those in agriculture, but we seem to
sing the same tune,” Taylor said. “We need to get out among consumers.” And Taylor believes he found the vehicle to accomplish that goal in the form of social media. Social media platforms such as Facebook, Twitter, LinkedIn, YouTube, and blogs allow farmers and others in the ag industry to send their messages directly to consumers, answer consumer questions about food production, and gain valuable insight into consumer attitudes and trends. “I’m very active on the social media front,” said Taylor, who
started out doing a weekly chat on Twitter. “It allows us to expand our reach.” The AgChat Foundation was launched in April 2010 with Nate Taylor a mission of empowering farmers to connect communities through social media. Key benefits of reaching consumers via social networks include the ability of farmers to tell their stories and clear up misconceptions on a neutral platform, greatly expand their reach to consumers, and social networks are not confined by time or geographical restrictions, according to Taylor.
“It’s an effective means to tell your story,” he said. The AgChat Foundation, in an effort to expand on the goal of spreading ag’s messages to consumers, on Aug. 22-23 will hold its second annual Agvocacy 2.0 Conference in Nashville, Tenn. It will accept 75 qualified applicants for the conference, up from 50 last year. Those interested in filling out an application for the conference may do so online by Friday at {www.surveymonkey.com/s/ag vocacy-2doto-conference}. Those selected will be notified in mid-July. More details about Agvocacy 2.0 can be found at {www.agchat.org} and on Facebook and Twitter. — Daniel Grant
Beekeeping field day June 25 An intensive beekeeping workshop for aspiring and beginning beekeepers will be offered from 1 to 4 p.m. Saturday (June 25) at the University of Illinois Extension office in Murphysboro. The registration deadline is Wednesday. The event is sponsored by the Southern Illinois Farming Network. Experienced beekeepers will discuss hive management, harvest of hive products, and the minimal equipment beekeepers need to work with bees. Session topics will include pests and diseases associated with bees and non-invasive methods to control both. The field day will offer several hands-on components, and sessions will be taught at hives, weather permitting. The registration fee is $20 for non-members of the Farming Network. There is no charge for members. For information, go online to {www.eatsouthernillinois.org} or contact the network’s Devin Brown by calling 618-771-0237 or e-mailing devin@eatsouthernillinois.org.
Page 9 Monday, June 20, 2011 FarmWeek
FROM THE COUNTIES
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ROWN — Farm Bureau and Country Financial will sponsor a “Farm Estate and Transfer” planning seminar at 6:30 p.m. Wednesday at the Corner Stone Christian Church, Mt. Sterling. Dinner will be served before the seminar. Call the Country Financial office at 217-7733591 or the Farm Bureau office at 217-773-2634 for reservations or more information. • Brown and Schuyler County Farm Bureaus will sponsor a Summer Ag Institute July 21-22. Teachers may receive 14 continuing professional development units. Cost is $10 for members and $20 for non-members. Call 217-322-4353 or 217-773-2634 for more information. Deadline to return applications is June 30. UREAU — Bureau and Lee County Farm Bureaus will sponsor their annual golf outing at 9 a.m. Friday, July 8, at Hunter’s Ridge Golf Course, Princeton. Proceeds will benefit the their Agriculture in the Classroom programs. Call the Farm Bureau office at 815-875-6468 for a registration form or more information. OLES — A Viewpoint meeting will be at 9 a.m. Tuesday, June 28, at the Triple H Grain Systems Co., Oakland. Mark Gebhards, Illinois Farm Bureau director of governmental affairs and commodities, will be the speaker. Call the Farm Bureau office at 345-3276 for reservations or more information. EWITT — The summer trip to Chicago will be July 25-27. Included on the tour will be the O’Hare Airport ag inspection station, Center Point Intermodal grain loading, architect cruise, ethnic neighborhood tours, and the Chicago Board of Trade. Deposits and reservations are due by July 6. Call the Farm Bureau office for more information. DGAR — The farmers’ market will be from 7 a.m. to noon Saturday at the north side of the square, Paris. Featured items will include cinnamon pull-aparts, rhubarb, vegetables, eggs, chicken, and beef. The market will run through Sept. 17. Call the Farm Bureau office at 217465-8511 for reservations or more information. The Charity Choice program will be available for customers Saturday. AYETTE — Farm Bureau will sponsor a bus trip July 29-30 to Fayette County Kentucky Farm Bureau to exchange ideas and share fellowship. Stops will include the Louisville Slugger
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bat factory, a Fayette County tobacco farm, a Kentucky member’s horse farm, and two Bourbon distillers which use Illinois corn. Seats are limited. Call the Farm Bureau office at 618-283-3276 for more information. RUNDY — The Grundy County Farm Bureau Foundation and Morris Downtown Development Partnership will sponsor the annual Liberty 5K run/walk at 7 p.m. Sunday, July 3. Cost is $25 for early registration and $30 on race day. A deadline party to register for the race will be from 5 to 8 p.m. Friday, July 1, at Ebbey George’s. The registration fee for children 13 and under is $5, and registration will be Sunday, July 3. Proceeds will benefit Operation Care Package and Operation MOMS Cookies. Registration forms are available at downtown businesses, the Farm Bureau office, or at {www.signmeup.com}. Call the Farm Bureau office at 815942-6400 or the Morris Downtown Development Partnership at 815-941-0245. ASALLE — The LaSalle County Farm Bureau Foundation golf outing and benefit will be at noon Friday at Senica Oak Ridge Course, Utica. Cost is $65, which includes golf, cart, Tshirt, and a steak dinner. A $30 ticket can be purchased for the steak dinner, which starts at 5 p.m. Tickets purchased at the door are $70 for golf and $35 for the dinner. A chance to win a Ford truck in a hole-in-one contest is sponsored by Bill Walsh Automotive. All proceeds will benefit the Ag in the Classroom program. Call the Farm Bureau office at 815-433-0371 for reservations or more information. EE — Farm Bureau will sponsor a legislative breakfast at 8 a.m. Monday, June 27, at the Red Apple, Dixon. State Sen. Tim Bivins (R-Dixon) and state Rep. Jerry Mitchell (R-Sterling) will attend. Call the Farm Bureau office at 857-3531 or e-mail leecfb@comcast.net for reservations or more information. • The Young Leaders Committee will sponsor its annual cookout at 6:30 p.m. Saturday, July 16, at Brad and Erin Shippert’s farm. The event is open to Farm Bureau members between the ages of 18 and 35. Bring a dish to pass and lawn chair. Call the Farm Bureau office at 815-857-3531 or leecfb@comcast.net for directions. ONROE — The Monroe County Farm Bureau Foundation has scholarships available to full-time college students. Deadline to
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return applications is July 15. Call the Farm Bureau office at 939-6197 or e-mail mcfarm@htc.net for an application. EORIA — Deadline to order Michigan blueberries is Friday, July 15. Cost is $10 for a five-pound container and $20 for a 10-pound container. Delivery to the Farm Bureau office will be Thursday, July 21. • The annual golf scramble will be at 7 a.m. Saturday, at Laurel Greens, Peoria. Cost is $15, which includes golf and cart. Reservation forms are available at the Farm Bureau office or on the website {www.peoriacountyfarmbureau. org}. CHUYLER — Brown and Schuyler County Farm Bureaus will sponsor a summer ag institute July 21-22. Teachers may receive 14 continuing professional development units. Cost is $10 for members and $20 for nonmembers. Call 217-322-4353 or 217-773-2634 for more information. Deadline to return applications is June 30. • Farm Bureau and the Rushville-Industry FFA will
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sponsor the annual used oil collection from 8 to 11 a.m. Friday, July 8, at the Rushville Two Rivers FS warehouse parking lot, and at 11:30 a.m. at the Camden Two Rivers FS. Those who have storage tanks with oil that cannot be moved, call 217-322-4353 to have the oil picked up. All proceeds for the collection will be given to Rushville-Industry FFA programs. AYNE — Stroke Detection Plus will conduct screenings from 9 a.m. to 4 p.m. Thursday, June 30, at the Farm Bureau office. Members will receive a $35 discount on four screenings — stroke, abdominal aortic aneurysm, peripheral arterial disease, and osteoporosis. Call 877-732-8258 for an appointment. • The member appreciation dinner will be from 5 to 7 p.m. Friday, Aug. 5, at the Cumberland Presbyterian Church, Fairfield. Tickets are $2 and are available at the Farm Bureau office. A silent auction will be held to benefit the Ag in the Classroom program. For more information, go to {www.waynecfb.com}.
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HITE — The Young Leader pistol shoot will be at 8:30 a.m. Saturday, July 16, at the Carmi Rifle Club. The steel target competition will consist of three rounds, five stations each, with five shots. First-place winner will receive a Browning Buck Mark MS Camper .22 pistol. Registration is $25 before July 1 and $30 after that date. Go to {www.whitecfb.com/pistolshoot.html} for more information. OODFORD — Farm Bureau and Proctor Hospital will sponsor a health fair from 6:30 to 10:30 a.m. Tuesday, June 28, at the Farm Bureau office. Call the hospital at 309-689-8334 for an appointment by Friday. Call the Farm Bureau office at 467-2347 for a list of screenings. • A meeting to review the spill prevention, control, and countermeasures rules will be at 7 p.m. Thursday, June 30, at the Farm Bureau office. Don Herring, Evergreen FS, will be the speaker. Call the Farm Bureau office at 467-2347 for reservations or more information.
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FarmWeek Page 10 Monday, June 20, 2011
PROFITABILITY
Markets, like the Cubs, bring highs and lows BY JOHN CRIPE
The news in the grain markets have been equally troubling. Obviously, wet weather has us off to one of the slowest planting starts in history. To the west there already is a drought in the southern plains, some say the worse since the 1930s. The rest of the world is having weather issues of varying kinds also. Concern of dry weather in Russia, Europe, China, and Brazil is growing again. World demand remains good despite the earthquake
This has been a tough spring. Lots of volatility, uncertainty, and fear going around. I am not talking about the grain markets; I am a Cubs fan and they are playing horribly. Most years John Cripe you can “keep hope alive” until at least the July All-Star break, then bad things start to happen.
Russia’s impact on wheat market may be minimal Russia’s looming return to the wheat market has created concerns about potential pressure on U.S. exports. However, Russia is not expected to be a major player in the market this year as it attempts to rebuild domestic stocks after severe drought there last year decimated many crops, including wheat. “Last year’s crop was a historic disaster,” said Tim Hannagan, analyst with PFG Best in Chicago. “Whatever (the Russians) had left, they had to keep for themselves.” Russia last year imposed a grain export ban that is scheduled to be lifted July 1. “They still have to produce a large chunk of grain to replenish stocks after last year,” Hannagan said. “They won’t be a major supplier (outside of Russia).” USDA last week, however, estimated Russia’s wheat crop losses last year may have been overstated by as much as 6 million tons (220 million bushels). Meanwhile, high crop prices likely could lead to increased world crop production, thus lowering U.S. exports this year by 5 percent for corn and 21 percent for soybeans, USDA projected.
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 $13.00-46.29 $38.00-$67.05 n/a This Week 22,340
Weighted Ave. Price $32.13 $54.46 n/a Last Week 24,421
*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 $92.82 $86.51 $68.69 $64.02
Change 6.31 4.67
USDA five-state area slaughter cattle price (Thursday’s price) This week 108.71 108.20
Steers Heifers
Prv. week 107.48 105.00
Change 1.23 3.20
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 124.58 124.89 -0.31
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-170 lbs. for 185212 $/cwt.(wtd. ave. 195.95); dressed, no sales reported.
Export inspections (Million bushels) Week ending 6-09-11 6-02-11 Last year Season total Previous season total
Soybeans 6.8 4.6 8.0 1403.9 1353.1
Wheat 23.9 22.5 14.1 32.1 22.6
Corn 32.1 37.8 41.7 1371.1 1422.8
USDA projected total
1580
1275
1950
Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
that hit Japan and the “Arab spring” that has brought turmoil to the Middle East and the oil markets. The funds have not lost their appetite for buying commodities as concern about inflation is still a fundamental worry. December corn has made a new high and is trending higher; soybeans at least are holding their own. This time of year is very important for the markets.
December corn tends to top out in June and go lower into fall, something like 80 percent of the time over the last 30 years. (Did not work that way last year). Of course, past performance is no guarantee of future results, but if you wanted to get a good price for corn the last 30 years, history is an important thing to know and keep in mind. Soybeans are more of a June/July top, but
the same seasonal price pattern applies there also. Markets tend to put in bad news early. So I guess the only thing we need to ask ourselves is what additional bad things could happen to this crop after the fourth of July? Did I mention I am a Cubs fan? John Cripe is director of MIDCO COMMODITIES Inc. His email address is jcripe@mid-co.com.
Cattle report could feed bullish market BY DANIEL GRANT FarmWeek
A surprise in the USDA cattle on feed report Friday is expected to feed bullishness that returned to the market last week. USDA on Friday reported marketings of fed cattle in
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May totaled 2 million head, which was 7 percent higher than last year and well above trade expectations. Meanwhile, placements in feedlots during May were estimated at just 1.81 million head, 11 percent below a year ago. “The report likely will add momentum to the market,” said Derrell Peel, livestock economist at Oklahoma State University. “A big marketing number and small placements pulls down the on-feed inventory.” Cattle and calves on feed in U.S. feedlots as of June 1 totaled 10.93 million head, up 4 percent from a year ago but slightly below trade expectations. Live cattle and feeder cattle futures prior to last week’s report were limit up. And the upward move in the market continued Friday as cash cattle traded at $111 per hundredweight. The market recently had dipped into the low $100s prior to the lateweek momentum. “Cattle futures were affected by outside money that was pulled out of the market, but it probably went too far (to the downside) the last week or two,” Peel said. The bullish move in the market last week “likely was the underlying fundamentals re-establishing themselves in the market,” he continued. “There is a good chance we’ll hold our summer low around $105.”
The economist believes the drop in placements last month is an indication that cattle-onfeed numbers will continue to drop, which could keep pressure on prices. He noted cattle herd numbers have declined substantially in the southern U.S. due to extreme drought and a subsequent reduction in grazing acres. “Feeder cattle supplies are horrendously tight,” Peel said. The economist is concerned about beef demand as tight supplies have pushed retail prices to record highs. So far, though, many consumers outside the U.S. have exhibited a healthy appetite for beef. Year-to-date beef exports, based on weekly data, as of last week were up 41
percent compared to last year, according to authors of the CME Group Daily Livestock Report.
FarmWeek Page 11 Monday, June 20, 2011
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T Economic concern escalating Greek debt issues surged to the fore again this past week. The Greek population was protesting new austerity measures the government proposed to help the country resolve its deficit spending. The riots and political stalemate sparked talk the Greeks might default on at least a part of their debt. The Greek situation was being compared to Lehman Brother’s September 2008 failure that triggered the worldwide economic “melt down.” The bigger fear is that lingering issues dealing with the Greek debt could cause their problem to spread to other European countries dealing with similar issues. The other countries are Portugal, Ireland, Italy, and Spain. If Greece were to default, it could cause others to do the same. And if Greece gets new measures to cope with its debt problem, these other countries might choose to follow, increasing the overall world investment into a what one would call “a fragile situation” at best. The difficulties extend into the European banking sector, too. Credit agencies put three major French banks on notice last week because of the amount of Greek debt they hold and the problems it would cause them if they defaulted. The bigger fear is that the problem may not stop with Greece if it starts but could cascade into other countries around the world through both the banking and financial industries. As recent as Friday, money market funds in the U.S. were said to be holding significant investments in Greek debt. Even
though the Greek crisis has been more than a year in the making, U.S. money market funds are said to still own $360 billion of shortterm European bank debt. That’s 22 percent of the assets they have under management — down from the 40 percent exposure they’ve held prior to this year, but still a significant exposure. Amid the threat of a financial problem erupting, a number of economies already are underperforming expectations developed late last winter. The U.S. economy is still growing, but at a pace below what was expected earlier in the year. Given the debt issues, most of Europe is growing slower than expected. And Japan is still dealing with lingering issues from the earthquake. Countries such as China and Brazil are still growing, but they increasingly are dealing with inflation issues, enough to trigger more monetary tightening. Just this past week, new Chinese inflation numbers exceeded expectations, triggering another increase in bank reserve requirements. It’s thought they will increase their short-term interest rates again in the next few weeks. Brazil is said to be in a similar spot. And there’s the threat high oil prices could have on economic growth around the world. Even though the Organization of Petroleum Exporting Countries refused to adjust quotas to deal with the issue, Saudi Arabia indicated it would raise its output above 1 million barrels per day to weaken the energy market. None of this bodes well for commodity markets, production uncertainties notwithstanding. The Reuters-Jefferies CRB index was headed for its worst lost in a month and lowest close since late January. Investment capital appears to be leaving riskier assets and headed to safe havens for awhile.
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2010 crop: The Greek debt difficulties were the catalyst that pulled commodities sharply lower. If you want to carry risk, it’s better to do it in new crop than old. And given some of the recent basis levels and possible transportation problems in the West, forward cash sales may be a better alternative than hedgeto-arrive (HTA) contracts. 2011 crop: A close below $6.50 on December futures would be an indication the trend is turning down into the 20week low due near Aug. 1. We do not recommend selling weakness, but would use a rebound to $6.75 for catch-up sales. HTAs for fall/early winter delivery are the best tool for sales. Fundamentals: Although acreage is a concern, the rising crop condition ratings have softened production anxiety. At the same time, steady indications that wheat is replacing corn in feed rations and deteriorating world economies have undermined demand expectations. But until a good crop is assured, traders will perceive a need to maintain some risk premium in prices.
Soybean Strategy 2010 crop: Prices continue to take their lead from the other grains, but the perceived need for some risk premium until planting ends limits weakness. Still, the struggle to move up, the lack of carry in the market, and approach of the end of the marketing year offer little reason to hold inventories. Use rallies to complete old-crop sales. 2011 crop: Acreage uncertainty is maintaining some risk premium for now. But early condition ratings are good, and weather suggests they will get better. Use rallies to $13.70 to make catch-up sales. Fundamentals: Other than double-crop acres, the only planting yet to be done is in the Dakotas, and they aren’t key producing states. Still, the loss of acreage could cut output 100 million to 150 million bushels. Nevertheless, the crop is off to a good start, and long-range summer weather forecasts look promising for this year’s crop. 8Fail-safe: Make sure sales
are at recommended levels if November closes below $13.50.
Wheat Strategy 2011 crop: The close below $7.13 on Chicago September futures opened the door for a sharp drop into harvest. The closest support comes near $6.50. The July contract has potential to $6. Once this liquidation ends, we should see a rebound. Plan to increase sales up to 65 percent on the next major rally. We prefer HTA contracts for winter delivery if you have the capability to store wheat because the carry is so large. Stay close to the Hotline:
we could recommend a sale at anytime. Fundamentals: With winter wheat harvest progressing at a steady pace, a part of the recent weakness could be seasonal harvest pressure. Early yield reports have been good in the Southern Plains considering the extremely poor growing conditions. And soft red yields mostly have been exceptionally good. Those are partly offsetting the planting problems in the Northern Plains. The Black Sea region has picked up timely rains, diminishing the threat of crop problems there and reinforcing the competition producers there present this year.
FarmWeek Page 12 Monday, June 20, 2011
PERSPECTIVES
CME proposes fertilizer contracts Last winter I had the pleasure of serving on an Illinois Farm Bureau GrassRoots Issue Team (GRIT) for the first time. These teams, eight in all, meet annually to develop, propose, and refine IFB policy. This program is a great way to get involved in shaping policy, but I digress: This column is about fertilizer. One note before continuing — when discussing fertilizer, the term “producer” means fertilizer manufacturer, not farmer. The Risk Management and Farm Programs GRIT, was CHRIS asked to look at items such as GOULD our team title might imply — issues associated with farmer risk as well as farm programs and crop insurance. One of the dominant issues since the commodity price run-up and ensuing crash in 2007-2008 is fertilizer prices. Many of us are familiar with the story. Almost unbelievable price increases in fertilizer followed the rise in commodity prices, including grain prices, prior to the “top” in the summer of 2008. When grain prices fell, so did fertilizer prices (albeit at a much slower pace), and the whole fertilizer supply chain was left holding inventory of comparatively expensive fertilizer. Farmers and retailers (and I’m sure other parts of the chain with which I’m less familiar) either had buildings and tanks full of highpriced material, or contracts that obligated them to buy at high prices. This is obviously a situation we’d all like to avoid in the future. So what to do? How can a farmer lock in his inputs, in this case fertilizer, to ensure this sort of thing doesn’t happen again? Short of constructing storage and holding the physical inventory, both of which are extremely expensive propositions, not much. Until now, that is. During research for our GRIT, David Lehman with the CME Group spoke to our team and shared CME’s plans to launch new fertilizer cleared OTC (over the counter) swap contracts during the summer of 2011. There will be contracts for urea, DAP, and UAN. Unfortunately, if you’re a fan of anhydrous, the CME Group is not considering anhydrous contracts at this time. He reminded us that this will be the third attempt at fertilizer risk management tools. The Chicago Board of Trade listed DAP and anhydrous futures contracts in 1992, while the CME listed DAP and urea futures in 2004.
Neither of the previous offerings gained enough liquidity to be sustained. This continues to be a potential problem. Remember, for each buyer of a contract on the “board,” there has to be a seller. And from a fundamental standpoint, there are fewer and fewer fertilizer producers all the time. Historically, they’ve not been too interested in hedging their products. The contract size will be 100 metric tons. Of course, this is too large for most Midwestern farmers. However, retailers could hedge their purchases, and because they would feel confident in their prices, could offer forward contracts to their customers, us farmers. The prices of the three products — urea, DAP, and UAN — will be settled against an index of actual cash prices paid. The urea contract will be based on Gulf of Mexico. There will be two DAP products. One will be FOB New Orleans and the other will be FOB Tampa (the export market), while the UAN contract will be FOB New Orleans. These new fertilizer risk management tools will be cleared OTC swaps that will be traded bilaterally between buyers and sellers in the OTC market. These OTC swaps can then be entered into CME Clearing through ClearPort, CME’s OTC clearing system. Once entered into ClearPort, CME Clearing will become the counterparty to the buyer and seller — just as it does with a futures contract. These cleared OTC products also will be margined just as futures contracts are to ensure their financial integrity. Our team discussed with Lehman and fertilizer industry representatives the need for educational efforts once the new contracts are launched to help the industry and farmers quickly understand how to develop and use meaningful fertilizer pricing tools for us, the end users. Look for more information to be forthcoming in FarmWeek and during IFB’s Commodity Conference this July. Our team also discussed the risks associated with pre-paying for crop inputs. Lately, there has been much discussion about the use of standardized pre-pay contracts that would spell out commitments from both parties, both retailers and farmers. Look for more to follow on the pre-paid contract issue. Chris Gould raises corn, soybeans, and hogs with his parents and his wife near Maple Park. He serves on IFB’s Risk Management and Farm Programs GRIT.
CME announces launch of fertilizer swap futures CME Group, a leading derivatives marketplace, last week announced the launch of trading and clearing services for four new cash-settled fertilizer swap futures for trade date July 11. Trading for these urea, urea ammonium nitrate- (UAN) and diammonium-phosphate (DAP) based fertilizers will be available on the New York trading floor with clearing services available through CME ClearPort. The contracts are listed with, and subject to, the rules and regulations of NYMEX.
“The fertilizer products we’re introducing allow market participants to manage fertilizer prices, one of the key and most volatile price inputs into grain production, further allowing a focus on margin management,“ said Tim Andriesen, managing director for agricultural commodities andalternative investments for the CME Group. Four new CME Group fertilizer swap futures will be listed on CME ClearPort and the NYMEX trading floor: urea (granular) FOB NOLA Swap Future, UAN FOB U.S. Gulf
Coast Swap Future, DAP FOB Tampa Swap Future, and DAP FOB NOLA Swap Future. Clearing services for the new fertilizer swap futures will be available through CME ClearPort, a set of flexible clearing services open to overthe-counter market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes. Additionally, these contracts will be financially settled against the price assessments compiled by ICIS and Profercy.
Pollinators make good things possible Pollinators support life as we know it. USDA Secretary Tom Vilsack has designated June 20-26 as National Pollinator Week. The Natural Resources Conservation Service (NRCS) works with private landowners to support pollinators and the habitat they need to thrive. To mark the occasion here in Illinois, here’s a crash course with facts: Three-fourths of the world’s flowering plants rely on the help of pollinators to reproduce. Some scientists say one out of three bites of food can be attributed to animal pollinators such as bees, butterflies, moths, birds, bats, beetles, and other insects. Pollinators provide crucial assistance to fruit, vegetable, and seed crops as well as other plants that produce fiber, medicine, and fuel. Unfortunately, pollinators are in trouble worldwide. Habitat loss, disease, parasites, and environmental contaminants pose many challenges for pollinators. But we can all help by providing pollinators with habitat. Here are a few ideas to consider: • Plant pollinator-friendly yard plants. Trees and BILL shrubs such as dogwood, blueberry, cherry, plum, GRADLE willow, and poplar produce ample pollen or nectar in early spring when food is scarce. • For summertime plantings, use a variety of flowers — mix colors, shapes, and scents. With a diverse array of different plants, you’ll attract a variety of pollinators. • Reduce or stop spraying pesticide in your landscape. Try to use plants that attract other insects to control pests. • Although butterfly and moth larvae can damage plants, don’t poison all those hungry caterpillars because one day they will become beautiful butterflies and moths. • Provide shallow water sources for pollinators — toss a few rocks into a bird bath. • Leave a dead tree trunk or two on your landscape, if possible. Bees and beetles prefer wood nesting and aging trunks are perfect. Insects often get a bad reputation as pests. Remember, they play an integral role in sustaining our earth. Honey bees are single-handedly responsible for billions of dollars worth of American crops each year. When honey bees visit flowers in search for food (nectar or pollen), they brush up against flower reproductive parts, depositing pollen from different flowers. The plant then uses that pollen to produce a fruit or seed. Without the help of pollinators, many plants are unable to reproduce. Bees are our main pollinators. North America is home to more than 4,000 bee species that nest underground, in twigs, debris, or dead trees. Butterflies seek nectar during the day time; their nocturnal counterparts, moths, seek it at night. The most common avian pollinator is the hummingbird, which prefers brightly colored tubular flowers. Thousands of beetles play an important role in the pollination process. Beetles comprise 40 percent of the world’s insect population. Other insects, such as flies, also pollinate plants. Small, flying flies, or midges, are the only known pollinators of cacao trees, which are used to produce chocolate. Translation? Pollinators support chocolate. Here’s a news flash for coffee drinkers. Research confirms pollinators increase coffee production by at least 50 percent. Although some coffee self-pollinates, shade-grown coffees and those grown close to forests are pollinated by local native bees. Conclusion: Pollinators support coffee production and help make your caffeine “fix” possible every morning. Pollinators play an important role. Could you imagine your life without pollinators, chocolate, or coffee? Don’t even think about it! Bill Gradle is the state conservationist with the Illinois Natural Resources Conservation Service. His e-mail address is Bill.Gradle@il.usda.gov.