CONCERNS ABOUT THE cost of the Senate Democrat climate/energy plan have prompted an Indiana senator to unveil his own alternative energy plan. ....................4
THE NUMBER OF DAIRY cows in the U.S. continues to decline, but milk production continues to increase many times over. Yet dairymen struggle to meet costs. ..............5
Monday, June 7, 2010
Two sections Volume 38, No. 23
Carp concerns
Halvorson: Open locks crucial to the economy
BY MARTIN ROSS FarmWeek
FarmWeekNow.com
Periodicals: Time Valued
O’Brien Locks aimed ostensibly at preventing migration of the invasive and voracious Asian carp from the Illinois River system into Lake Michigan. In 2008, 6.9 million tons of oil, cement, coal, ag goods, and other essential products moved through the two locks. Halvorson, whose district includes a significant stretch of the Illinois River, helped head off a recent federal plan that might have limited traffic at
Farmers playing catch-up in fields after a wet May BY DANIEL GRANT FarmWeek
In the shadow of Chicago’s landmark Wrigley Building, U.S. Rep. Debbie Halvorson, a Crete Democrat, Friday reiterated a call to control the carp without compromising commerce. Illinois Farm Bureau has joined the “UnLock Our Jobs” campaign, which opposes proposed shutdowns at Northeastern Illinois’ Chicago and Visit Far mWeekNow.com to learn more about Asian carp and the “Unlock our Jobs” issue.
R E TA I L M E A T P R I C E S inched up prior to the unofficial start of the grilling season (Memorial Day weekend) and could be poised to go higher still. ................8
Illinois Farm Bureau board member Mike Kenyon, left, speaks on behalf of keeping Chicagoland locks open during a Friday news conference beside the Chicago River in downtown Chicago. U.S. Rep. Debbie Halvorson, center, a Crete Democrat, has championed the cause, which is supported by a number of commercial groups with interests in river shipping, including the Illinois Corn Marketing Board, represented at right by Donna Jeschke of Mazon. (Photo by Adam Nielsen)
those locks to a few days a week or even one week per month. The Illinois Chamber of Commerce warned the closures could cost $4.7 billion in lost commerce over the next two decades. The Illinois Corn Growers Association sees shutdowns adding an annual $500 million to industry transportation costs. The U.S. Supreme Court has rejected motions by the state of Michigan to close the locks, and Halvorson challenged the notion that lock closures could control the carp’s movement. “We seem to be winning this case,” she told FarmWeek. She noted no Asian carp have been found past Chicago locks or electronic barriers installed in the Chicago Sanitary and Ship Canal. Halvorson noted there has been DNA testing to trace carp movement, construction of a physical barrier to prevent movement between the Des Plaines River and the canal, and harvesting of the carp for Chinese and other markets. A one-week lock closure in May to conduct a staged fish kill
on a two-mile stretch of the Little Calumet River in search of Asian carp yielded none of the invasive species among some 11,000 fish. Detroit-based Great Lakes Environmental Law Center Director Nick Schroeck subsequently stated that “perhaps we can concede that asking for an injunction to close the locks was not the right solution.” “So many businesses and jobs in the 11th Congressional District depend on our waterways,” Halvorson said. “There are 8,500 direct jobs (tied to port activities at the two Chicagoland locks), let alone the indirect jobs. “Michigan and our other Great Lakes states want to close these locks. They think it’s the only way to prevent Asian carp from ‘escaping’ the Illinois River. To me, that’s a slap in the face, intellectually. “Carp don’t wait for that fifth day of the week or that one week of the month (when locks would be open). If people knew the workings of our locks, they’d see carp can move freely See Carp, page 3
FarmWeek on the web: FarmWeekNow.com
Farmers the past couple weeks made significant progress with fieldwork after rain delayed many activities for much of May. Corn planting as of the first of last week was 99 percent complete, and 73 percent of soybeans were in the ground, the National Agricultural Statistics Service Illinois field office reported. The planting pace was 5 percent ahead of the fiveyear average for corn and 2 percent above average for beans. Meanwhile, farmers during the last week of May harvested 38 percent of the alfalfa crop. Overall, 64 percent of the first cut of alfalfa was complete as of the first of last week compared to the average of 53 percent. “The bean planting is just about finished,” said Ted Kuebrich, a FarmWeek Cropwatcher from Jersey County. “The corn is growing well with the hot and humid weather, as are the beans.” Illinois for the month of May averaged 5.68 inches of rain, 1.42 inches above normal, according to Jim Angel, state climatologist with the Illinois State FarmWeekNow.com Water Survey. P l a nting season is winding The average temperature, down, and farmers are now foafter a cool start to the month, cusing on spraying. Check the ended up 1.3 degrees above latest CropWatchers reports at normal at 64.1 degrees. FarmWeekNow.com. “It was a pretty wet month,” Angel said. “And the second half (of May) was much warmer” than normal. In fact, the average temperature from March through May was 55.3 degrees, 3.3 degrees above normal. The National Weather Service forecast for this month called for an increased chance of above-normal precipitation, Angel reported. More rainy and cloudy conditions could contribute to reports of corn that is pale or yellow in appearance. “Environmental conditions play an important role in nutrient availability,” said Fabian Fernandez, University of Illinois Extension soil fertility specialist. “Any factor that restricts root growth and activity has the potential to restrict nutrient availability.” Nutrient deficiencies in corn observed so far this season likely were caused by excess water (which depletes oxygen levels in soil), cool soil temperatures (which decrease root activity), numerous cloudy days (which lower light intensity and reduce photosynthetic rates and nutrient uptake by the crop), and immobilization of nitrogen (which occurs typically in cornon-corn when nitrogen becomes temporarily unavailable as microorganisms break down crop residue). “As growing conditions improve, most nutrient deficiency symptoms will disappear without additional fertilization,” Fernandez said. If a nutrient deficiency is suspected, farmers should collect plant samples and send them to a laboratory for nutrient analysis, the specialist added. Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, June 7, 2010
PORK EXPO
Quick Takes PESTICIDE PRECEDENT — The Environmental Protection Agency (EPA) has issued a draft of planned new permits for use of several pesticide classes. The action followed an April 2009 federal court decision ruling that spray nozzle and other pesticide discharges are point-source water pollutants under the federal Clean Water Act. While permits would cover mosquito, aquatic, and forest canopy pesticides and impose no new rules for ag chemicals, farm groups fear EPA’s precedent eventually could lead to costly farm regulations. “Farmers already have a set of regulations that they follow to apply pesticides,� American Farm Bureau Federation regulatory specialist Tyler Wegmeyer argued. The proposed permit, now subject to a 45-day public comment period, would require operators to reduce discharges by using the lowest effective rates, calibrating equipment, and monitoring for and reporting “adverse incidents.� EPA estimates the new permitting — tentatively to take effect April 9, 2011, — would affect approximately 35,000 applicators nationwide. BUSTING MYTHS — The news and communications division of the Illinois Farm Bureau has launched a new blog, “Standing Out in the Field.“ The blog went live June 1. It will serve as a fact-checker for farming and agriculture and will focus on news stories and other media — regional and national — that center on agriculture or farming and “miss the mark.� The blog will provide a link to the story or report in question and explain to the reader why either is wrong or misleading. Blog entries will also provide accurate, factual information from experts in the industry. “It is our intention that consumers and reporters alike will go to the blog to read the other side of the story when agriculture is in the media spotlight,� said Craig Fata, IFB media relations manager. The first post deals with a public service announcement from the World Society for the Protection of Animals, featuring Tiffani Thiessen encouraging viewers to eat a more humane diet. The blog can be accessed at {http://illinoisfarmbureau.wordpress.com/}. WHAT AM I BID? — Andrew McDowell of Vandalia will participate in the World Livestock Auctioneer Contest June 19 at the Oklahoma National Stockyards in Oklahoma City. The contest is an annual event sponsored by the Livestock Marketing Association (LMA). McDowell is sponsored by Greenville Livestock Auction Inc. which is owned by J.R. Hugo and Travis and Shaina Diekemper, a family-owned business at the livestock auction market south of Greenville. McDowell is one of 33 auctioneers from the U.S. and Canada to qualify for the finals. To participate in the finals, auctioneers must place in the top eight at one of the four regional contests, which McDowell did at Crawford, Neb., last October. The contest is open to the public with all the contestants selling in the opening round, and the top 10 finalists competing in a final round.
FMD outbreak in Japan
World Pork Expo to go on as planned BY DANIEL GRANT Farmweek
The outbreak of foot-andmouth disease in the Japanese livestock sector thus far has not had much of an impact on the U.S. In fact, plans have not changed this week for the World Pork Expo (WPE) in Des Moines, which will be held Wednesday through Friday. The WPE was canceled in 2001 due to concerns about foot-and-mouth outbreaks in Great Britain and Argentina. However, biosecurity measures were put in place at the WPE after those incidents. International visitors to the WPE were asked not to visit a farm at least five days prior to their visit to the U.S. as footand-mouth disease can be transported on clothing. About 30 countries will be represented this week at the expo, according to Wrigley. Also, each attendee at the expo must register to enter the grounds and all pigs brought to the show must pass an onsite screening from a veterinarian. Meanwhile, U.S. beef producers are cautiously optimistic Japan’s misfortunate could boost sales of U.S. meat around the world. Japan suspended beef exports as a precautionary measure. As of last week the
Japanese reportedly had destroyed 100,000 pigs and cows to stop the spread of FMD. “You always hate when something bad happens to someone else, but I think it will be an opportunity to sell more beef,� said Maralee Johnson, executive vice president of the Illinois Beef Association. FMD is a highly contagious disease among livestock and
can lead to high mortality rates in young animals, according to the World Organization of Animal Health. FMD does not present a threat to humans even if they eat meat from an infected animal. “With FMD it’s about the health of the animals,� said Neil Dierks, CEO of the National Pork Producers Council. “It’s not a food safety issue.�
OPENING DAY
Nearly 6,000 people last week attended the home opener of the Normal CornBelters at The Corn Crib, Illinois’ newest professional baseball venue. The Illinois Corn Marketing Board (ICMB) entered into a naming rights partnership with the CornBelters as a public outreach and messaging program. As a component of the ballpark theme, area FFA chapters were enlisted to grow corn for the landscaping. Here, Jim Rapp, ICMB chairman, poses beside corn grown by the Tri-Valley FFA Chapter. It will be a focal point near the outfield and be used as the entryway for the CornBelters onto the field. (Photo by Ken Kashian)
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(ISSN0197-6680) Vol. 38 No. 23
June 7, 2010
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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FarmWeek Page 3 Monday, June 7, 2010
GOVERNMENT Biodiesel credit awaits Senate vote
AFBF: Keep estate tax out of ‘extenders’ snare BY MARTIN ROSS FarmWeek
Producers seek speedy Senate action on tax extenders measures needed to resuscitate a flagging biofuels sector while hoping crucial estate tax reforms don’t meet the same fate as the biodiesel tax credit. The House approved a
comprehensive tax cut-spending package, including retroactive extension of the $1-pergallon biodiesel blenders credit, prior to Memorial Day recess. The credit expired Jan. 1, removing at least temporarily a cost incentive for fuel suppliers to use soy oil-based fuel and spurring thousands of
Ethanol tax credit extension crucial The federal ethanol blenders tax credit and “E15” approval are key not only to meeting future domestic biofuels demand but also to fostering infrastructure needed to deliver tomorrow’s renewable energy. That’s according to Judd Hulting with Patriot Renewable Fuels LLC, an 18-month-old ethanol operation near Annawan. Hulting argues the 45-cent-per-gallon credit is “pretty critical, just looking at what’s happened to the biodiesel industry” since January expiration of a similar biodiesel credit (see accompanying story). The ethanol credit is due to expire Dec. 31. In a May 24 letter, the national Renewable Fuels Association (RFA) urged U.S. House Ways and Means Committee leaders to include extension of expiring ethanol tax incentives “in any legislative package designed to promote green job growth and economic revitalization.” RFA encouraged lawmakers to adopt proposals that would extend the blenders credit and related incentives through 2015. To date, Patriot has enjoyed continued market growth, and Hulting believes federal approval for 15 percent ethanol gasoline blends (E15) would spur smaller fuel terminals to add the “tankage” necessary for expanded rail ethanol transport and thus new market development. In the interim, the ethanol credit is important “to keep some stability in the marketplace,” Hulting said, especially amid continued volatility and uncertainty in the petroleum sector. Under credit availability, ethanol prices of late have remained essentially “flat,” he reported. “It’s a much cheaper alternative to conventional gasoline, and these blenders know that,” Hulting told FarmWeek. “It just makes all kinds of sense to continue to increase the blend level — that just translates into cheaper gasoline for the consumer. “There’s not enough storage along the East Coast terminals. (Tax credit savings) would be another way a blender could put in an extra tank or have a little more room for ethanol. It would be a win-win for them, for us, for the consumer. We’re limited here by infrastructure.” RFA estimates ethanol supports nearly 400,000 jobs and reduced oil imports by 364 million barrels in 2009, as well as saving consumers roughly 10 cents per gallon of E10, the standard ethanol-blended fuel. — Martin Ross
Carp Continued from page 1 even when (the locks are) closed.” To sign a Halvorson-backed petition urging the U.S. Army Corps of Engineers to leave the locks open, visit {www.protectingillinoisjobs.com}. For added information on the issue, visit {www.unlockourjobs.org}. Senate Majority Whip Dick Durbin, a Springfield Democrat, recently joined 11 senators seeking Senate Environment and Public Works Committee authorization of Corps steps to control Asian carp. Those include a study of ways to physically separate the Great Lakes and the Mississippi River system, efforts to limit migration of “nuisance species,” and improvements in the existing electronic barrier system. Since 2003, Durbin and Hinsdale Republican Rep. Judy Biggert have obtained more than $25 million in federal funding to help contain the carp. Sen. Roland Burris, a Chicago Democrat, also is part of the bipartisan Great Lakes Task Force that is seeking expanded carp control efforts.
biodiesel industry layoffs. Farm Bureau and biodiesel/soy interests hope the Senate will act quickly on what American Farm Bureau Federation analyst Pat Wolff termed “the conference bill without a conference” — a previously negotiated bill that will move to the president’s desk immediately following Senate passage. The bill also includes extension of five-year depreciation for farm/business equipment and individual tax deductions “farmers rely on to manage cash flow,” AFBF President Bob Stallman stressed. It supports incentives for farmland preservation and producer food donations. Speed is seen as essential in achieving 2010 tax goals as lawmakers gear up for November elections. The 45-cent-pergallon ethanol blenders credit expires at year’s end, while the now-lapsed federal estate tax will return in 2011 at pre-2002 rates and exemptions unless Congress takes action. The individual exemption reached $3 million in 2009 prior to repeal, but under 2001 tax
provisions, producers with estates valued as low as $1.5 million would be liable for estate taxes beginning next year. Late last year, the House voted to permanently extend the estate tax through 2010 with a $3 million exemption, but the Senate failed to act. Wolff was hopeful the Senate soon would take up a proposed $5 million individual/$10 million-per-couple exemption. However, momentum toward a bipartisan estate tax compromise was stronger last fall when Democrats had hoped to head off loss of 2010 tax revenues through estate tax extension. “The motivation to do it ‘quick’ is past, because so much time has past, but there is motivation to do this soon so it doesn’t get sucked into (the next) end-of-the-year tax extenders bill,” Wolff told FarmWeek. Capital gains reform might prove a more optimistic goal for 2010, she said. The top capital gains tax rate is set to jump from 15 percent to 20 percent next Jan. 1, and a recent House proposal would
more than double the current rate — a move which would be “extremely detrimental to small businesses,” according to Peoria Republican U.S. Rep. Aaron Schock. Schock deems measures such as capital gains relief and accelerated depreciation key needs for farm/small business development and investment, given the potentially “negative consequences” of health care and financial reforms and proposed climate regulation (see page 4). The White House favors extending the 15 percent capital gains rate for individuals with annual net income under $200,000 or married joint filers with income under $250,000. While that would appear to take in a broad swath of Illinois producers, additional non-farm or spousal income could bump some operations above those thresholds, Wolff advised. “We’ll argue there should be capital gains tax relief for everybody, as a jobs incentive,” she said. “But it’ll be end-ofthe year for this (issue).”
FarmWeek Page 4 Monday, June 7, 2010
GOVERNMENT
Annawan ethanol plant reducing ‘footprint’ BY MARTIN ROSS FarmWeek
A Northwestern Illinois ethanol producer has dramatically reduced its water “footprint” and is looking next at curbing carbon emissions through improved technology. In late May, Annawan’s Patriot Renewable Fuels became one of the nation’s first ethanol facilities to earn official “zero liquid discharge” (ZLD) status. Recently added stateaccredited technology enables Patriot to use all water that enters the plant, eliminate wastewater discharge, and save a projected 65 million gallons of water per year. Patriot’s used approximately 2.9 gallons of water per gallon of ethanol produced prior to implementing ZLD technology. Water use since has been reduced to 2.25 gallons per gallon of ethanol, well below the University of Illinois’ newest estimate of standard industry consumption. Competing water demands can be a deal breaker for some
communities eyeing an ethanol plant siting. And with the BP oil spill continuing to contaminate U.S. waters, Patriot spokesman Judd Hulting emphasizes continued advancements in ethanol sustainability are needed. “We think we’re doing all we can to conserve water, to not affect the water table, to be environmentally friendly to the local neighborhood, and to try to educate consumers that this is so much better than deep-sea oil,” he told FarmWeek. Meanwhile, Patriot is studying ways it can reduce its overall “carbon footprint” — greenhouse gas (GHG) emissions related to biofuels production. GHG impacts relative to conventional gasoline are the key criteria under the federal renewable fuel standard (RFS2) for distinguishing between first-generation corn ethanol and “advanced biofuels.” The RFS2 directs 15 billion gallons of corn ethanol use by
2022, while mandating 21 billion added gallons of advanced biofuels use. Ethanol plants can improve greenhouse scoring and potentially win advanced status by improving use of energy and other resources, including water. A new University of Illinois-Chicago (UIC) study of dry mill ethanol plants responsible for 66 percent of the nation’s production reveals that the energy needed to make a gallon of corn-based fuel decreased by an average 30 percent over the past decade. UIC research economist Steffen Mueller found plants today use 28 percent less thermal energy from natural gas, some coal, biomass, and landfill gas and 32 percent less electricity to turn corn into ethanol. Mueller argued new technologies reduce energy production needs and stressed corn ethanol plants “are in a rapid innovation phase.” “The challenge for policy-
makers will be to keep up with these developments so that (biofuels) regulations are
meaningful and reflect stateof-the-art industry practices,” he advised.
Lugar offers climate alternative
Post-spill climate pressure costly for farms, business Someone must pay for the ravages of the Gulf oil spill, the White House argued last week, urging Congress to redirect billions in petroleum industry tax breaks to “clean energy” development and move comprehensive Senate energy legislation. But U.S. Rep. Aaron Schock, a Peoria Republican, fears producers, small businesses, and consumers could foot a key share of the bill for President Obama’s self-declared approach to kicking the “fossil fuel addiction.” Senate energy provisions are linked to measures that would regulate and levy potential penalties against industrial and utility greenhouse emissions. Schock cited estimates that the greenhouse component of the energy/climate package could spur a 30 percent across-theboard hike in Illinois electricity rates alone. The Midwest, heavily reliant on coal-powered generation, would be especially hard-hit by emissions regulations. If coalpowered utilities were forced to shift to natural gas, that would result in added pressure on the fertilizer industry. “It’s not only going to hit every individual’s pocketbook,” Schock told FarmWeek and others. “Companies that are into manufacturing would be affected; agriculture is a huge industry in my district. They’re not looking to be able to pay an additional 30 percent in their costs to produce goods and remain profitable or stay in business.” This week, amid concerns about the cost of the Senate Democrat climate/energy plan, Sen. Richard Lugar (R-Ind.) is set to unveil his own alternative plan. Lugar suggests his proposal would reduce foreign oil demand by a cumulative 1.75 billion barrels by 2030, while reducing GHG emissions by 25 percent. That meets half of Obama’s 2020 greenhouse goals, Lugar stated. Projected gains would be achieved with “no cost” to gross domestic production, no net job loss, and a 10 percent-per-household average savings on electricity costs, according to the senator. An advanced draft of the plan proposes: • Improved vehicle efficiency measures. • Increased “advanced renewable fuels” eligibility under federal energy programs. • “Flex-fuel” requirements for all new U.S.-marketed vehicles, beginning with the 2013 model year. That would greatly bolster E85 (85 percent ethanol gasoline) markets. • A “long-term predictable framework” to shift to “diverse domestic power,” including nuclear power, clean coal combined with carbon sequestration, and renewable sources. A new “credit” system would help utilities make the transition, and Lugar proposes a voluntary, gradual retirement program for “the nation’s most-polluting coal plants.” A proposed loan guarantee program would help bring new nuclear power plants on line. — Martin Ross
Illinois State Fair Museum seeks nominees for honor The Illinois State Fair Museum Foundation is seeking 10 individuals to recognize as an Illinoisan of the Day during the 2010 State Fair Aug. 13-22. The deadline is June 15. The goal is to honor individuals who make a difference in their community and show a true Illinois spirit through hard work and dedication to helping others. Nomination forms may be requested by calling the foundation at 866-996-1853 or by downloading one from the foundation website {www.statefairmuseum.org}. Winners will be contacted by phone and announced at the foundation’s annual kickoff on July 10 in the Orr Building on the Illinois State Fairgrounds.
FarmWeek Page 5 Monday, June 7, 2010
DAIRY
U.S. dairy farmers produce more milk with fewer cows BY DANIEL GRANT FarmWeek
U.S. dairy farmers continue to make serious strides in producing more for a growing population. The number of dairy cows in the U.S. from 1944 to 2009 decreased from 25.6 million to 9.2 million while production during the same time increased from 117 billion to 189.3 billion pounds, according to Mike Hutjens, University of Illinois Extension dairy specialist. “These strides in efficiency are a testament to dairy farmers’ ability to provide topnotch nutrition and care for their cows,” said Jim Fraley, Illinois Farm Bureau livestock
program director. Each U.S. dairy cow last year produced an average of 20,576 pounds of milk compared to an average of 12,165 pounds of milk per dairy cow in the European Union. Hutjens believes about twothirds of the production increases in the U.S. can be attributed to better feed quality, feed management, and better health of dairy cows while the remaining one-third of production increases are a result of genetic improvements in dairy herds. “The continued improvements in efficiency in the U.S. dairy industry reflect higher milk yield per cow, which
Dairy farmers back to break-even The outlook for the dairy industry this year is dependent in large part on each producer’s perspective. On one hand, dairy production has returned to near breakeven levels this year compared to last year when milk prices plummeted from around $18 to $12 per hundredweight. But on the other hand, dairy producers have not enjoyed the return to profitability experienced in recent months by those in beef cattle and hog production, and as a result have been unable to rebuild lost equity. “We (in the dairy industry) are just kind of hanging right around break-even,” said Mike Hutjens, University of Illinois Extension dairy specialist. The year started with more promise as milk prices in January briefly surpassed $15 per hundredweight. But since then prices have hovered in or below the $13 to $14 range. “We were hoping in 2010 we could start catching up (from losses suffered in 2009), but it’s just been tight,” Hutjens said. Fortunately, the situation generally has not been as bad for dairy farmers in Illinois as their counterparts in the Southwest. The number of dairy cows in the state, therefore, has remained steady in recent years at about 102,000 head. Many Illinois dairy producers last year qualified for Milk Income Loss Contract (MILC) payments that ranged from $1.50 to $1.80 per hundredweight. Support from some cooperatives added as much as $1 per hundredweight to milk prices, and premiums for milk produced without supplemental r-BST (recombinant bovine somatotropin) were worth up to 50 cents per hundredweight. “We (in Illinois) had a buffer of about $3 built in” to milk prices, Hutjens said. “Bigger herds (in the Southwest) last year were losing as much as $4 per cow per day.” Many Illinois producers also benefit from the fact that they produce their own feed (mostly forage and corn) and do not have to hire a large amount of outside labor. “Illinois is an excellent place to produce milk,” said Jim Fraley, Illinois Farm Bureau livestock program director. “We’ve got the consumers, processing capacity, and we grow tremendous crops.” Illinois currently ranks 20th nationwide in milk production but is first in low-fat ice cream production and third in the production of sherbet mix and sour cream, Fraley reported. — Daniel Grant
Can data center be fueled by manure? Dairy farms and high-tech data centers may seem to be unexpected partners; however, California-based HP Labs has shown the specific needs and challenges of both can be aligned. Last week HP Labs, HP’s research arm, released a study showing how dairy farm manure and waste heat from computer data centers can be combined to create an economically and environmentally sustainable operation. The HP researchers explained that a farm of 10,000 dairy cows could fulfill the power requirements of a 1-megawatt data center — the equivalent of a medium-sized data center — with power left over to support the farm’s other needs. In the process, the heat generated by the data center can be used to increase the anaerobic digester’s efficiency. The symbiotic relationship allows the waste problems faced by dairy farms and the energy demands of the modern data center to be addressed in a sustainable manner, according to HP researchers.
results in lower-priced milk and dairy products for U.S. consumers,” Hutjens said. The dairy industry is becoming “greener” in the process, according to the specialist. “We end up producing so
to produce each gallon of milk in 2007 compared to 31 pounds of carbon dioxide per gallon of milk in 1944. The efficiency gains are vital to an industry strapped with the task of producing more on fewer acres while also attempting to reduce its carbon footprint. The Food and Ag Organization of the United Nations recently released a report that claimed the dairy industry worldwide accounts for 4 percent of greenhouse gas emissions. The emissions are associated with the production, processing, and transportation of milk along with meat production from the dairy industry.
much more milk with fewer cows,” Hutjens said. “The carbon footprint (of the dairy industry) has decreased by about two-thirds per pound of milk.” Hutjens estimated it took 12 pounds of carbon dioxide
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FarmWeek Page 6 Monday, June 7, 2010
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We were starting to get dry around here, because we had missed most of the rains for the last three weeks. Last week it rained three times and each time brought only about 0.3 of an inch of rain, but everything looks a lot better already. Some of the cornfields still have some yellow spots and uneven growth, mostly in corn after corn, but also in corn after beans. Planting probably is 99 percent finished, and almost all of the first cutting of hay was finished up during our “dry spell.” Lots of spraying and sidedressing of nitrogen are the main jobs now. Leroy Getz, Savanna, Carroll County: Rain total for the month of May: 4.2 inches. June rain of 0.6 of an inch came on Tuesday. Some early corn is knee-high already. Wheat is all headed out, and some has been sprayed with fungicides. Oats are heading out and are quite tall. Beans are big enough to spray with herbicides. A beautiful Memorial Day weekend was stressful on our dairy farm when our essential loader tractor’s hydraulics quit over the three-day holiday. Larry Hummel, Dixon, Lee County: Variegated cutworms are the insect of the week for Lee County. We have about 230 acres of no-till soybeans that were struggling with emergence after a 2-inch downpour caused a pretty hard crust. We got some showers that helped. Even though the stand was on the low side, it was good enough. But every time I came back to check on them, the numbers were getting lower. My Pioneer rep and an agronomist determined that variegated cutworms were the culprit. Plants that I thought had the cotyledons broken off trying to emerge through the crust instead had been eaten off by the cutworm. Thursday, I replanted about 30 acres. The rest, I am calling close enough. Joe Zumwalt, Warsaw, Hancock County: There was some activity last week in Western Illinois in between local heavy rain events. Several rounds of storms moved through bringing a wide range of rainfall rates to the area. Over the course of the last 10 days, however, corn has been replanted and many soybeans have been put in the ground and already are emerging. I luckily finished planting soybeans June 1. Quite a bit of hay was baled between rain events. The early corn is nearing V7, but some is just emerging. There is a lot of spraying that needs to be done as the weeds never take a holiday from growing. 2010 started off with favorable weather, but it has become very similar to the last two years. Good luck to everyone with crop yet to plant. Ken Reinhardt, Seaton, Mercer County: Some planting progress was made over the Memorial Day weekend. I finished corn and beans just a day earlier than last year. Pretty disappointing after such a good start in mid-April. There is still some corn to be planted the first time and maybe 25 percent of the beans. Some corn that was replanted over the weekend (May 29-30) was flooded immediately by 2.5 inches of rain last Tuesday night. Up to 6 inches of rain and hail were reported to the south in Henderson County. The earliest corn and beans are looking good. Ron Moore, Roseville, Warren County: It finally dried out enough to replant about 90 acres of crusted and waterlogged crops last week. Then on Tuesday and Wednesday we had 2.5 inches of rain and we had about 20 acres of water standing on some of the replanted crops. At this point we will not replant any corn, and we will have to wait on dry weather to decide on the beans. Post spraying of corn has been a challenge, and no bean spraying is going on yet. The early corn has just about closed the row. There are a few acres of beans yet to plant. Not much hay has been mowed. Pasture conditions are great with all of the rain we have had. We have more grass than the cattle can eat right now.
Jacob Streitmatter, Princeville, Peoria County: This past week allowed me to finish planting soybeans and also get my corn replanted. I was able to replant corn on June 1 in what I thought were very good conditions. That night I received about 2.5 inches of rain on that ground and more since then. I’m starting to think that it is not possible to get a nice, gentle rain. In between rains, I have been trying to keep the sprayer moving along with everybody else. My dad said the other day that he needs to get a bigger rain gauge so he does not have to dump it twice a day. Ron Haase, Gilman, Iroquois County: Our third son, Bruno, was born on May 29. Everyone is doing well. We received 0.3 of an inch of rain on our farms on Memorial Day. Then on June 2, we received a range of 0.4 to 0.55 of an inch on our farms. We were able to return to the field to sidedress nitrogen on our corn June 3. Many local farmers also were able to spray herbicides in their fields. Post-emergence applications of glyphosate were being made in cornfields. Fields of corn on corn have been more uneven in growth and color than corn after soybeans. Some of the reasons for the variations are residue on the surface, compaction from harvest, slow draining areas, and type and timing of spring tillage. As these areas reach the V6 growth stage, their appearance improves. Corn in the local area is anywhere from the V4 to V8 growth stage. Most corn is in the V6 to V7 growth stage. Area soybean fields are anywhere from emerging up to the V2 growth stage. Nitrogen fixation begins at V2. Local closing prices for June 3: nearby corn, $3.27; new-crop corn, $3.33; fall 2011 corn, $3.62; nearby soybeans, $9.48; new-crop soybeans, $8.81; fall 2011 soybeans, $8.98. Brian Schaumburg, Chenoa, McLean County: Rapid crop development placed high priority on finishing sidedressing and post spraying of corn. Secondary root systems are now established and deep green color has returned. Soybeans are V1 to V4. June corn, $3.26; fall $3.26; June soybeans, $9.07; fall, $8.60; fall wheat, $3.67. Steve Ayers, Champaign, Champaign County: Looking good in the neighborhood! Crops are growing well with all the corn in and 90 percent of soybeans planted. The early-April corn is about V8 and more than 20 inches tall, while early-May corn is V4 and 8 inches tall. We had 0.15 of an inch of rain on Memorial Day and 0.5 of an inch early Wednesday morning. Temperatures continue to range from the 60s to the 80s with a chance of rain nearly every day through Thursday. Farmers are busy spraying, mowing, sidedressing, cultivating, and scouting. Bug of the week was the corn rootworm larvae confirmed north of Urbana. Wilfred Dittmer, Quincy, Adams County: The clouds already are rolling in (Friday) and the weather guys say more rain, so it probably will do so. Rainfall for the week was only 0.8 of an inch. Total for May registered 2.9 inches. Most corn is looking better, while other fields have spots of replant, and yet others have just been planted for the first time. Soybeans are going in and may be at 50 percent completed. There were only about three days in the last week for fieldwork. Most hay fields are still standing also. Take time to be careful. Carrie Winkelmann, Menard County: We started planting beans on May 28 and got three good days in the field before getting a small shower that sent us home for the afternoon on Memorial Day. Had good weather and were back in the field on June 1, but a 0.75-of-an-inch rain that night has kept us out since. The beans planted on May 28 have emerged. Corn is coming out of the hail damage and is at stage V8. Corn around the area is spotty due to the 9.5 inches of rain received in May.
Tom Ritter, Blue Mound, Macon County: Since Memorial Day weekend and including last weekend (June 56), we’ve had numerous small showers, but no major accumulation. Rain totals have been somewhere around 1 inch with a few locations slightly above that. Moisture at this point is no problem at all. Very adequate. Soybean planting is in the last 10 percent with most people having the planters cleaned up and put away. There is spraying, especially on corn, but it is a little too early for the soybeans. Corn is 2.5 feet in height. Earlierplanted beans are 4 to 6 inches tall with the later-planted beans just emerging. Overall, crop prospects for corn and beans look very good. Forecast is for additional showers into the week. We will definitely keep the pump primed and a good outlook to get this crop off to a good start. Todd Easton, Charleston, Coles County: It’s been one of those “more rain everytime you turn around” weeks across Coles County. The good news is that many of the area farmers were able to wrap up soybean planting some time during the holiday weekend before the rains came. The bad news is sprayers and sidedress applicators still have a several acres to cover and are losing prime running time to this wet weather. In keeping with the rainfall theme of the year, showers have been very spotty and varied across the county with Monday (May 31), Tuesday, and Thursday rains accumulating more than 2 inches on our farm and almost double that just north of us. Many have commented that they actually watched the corn grow the last several days. It has almost doubled in height over that time. Maturity for the crop on average is in the V6 to V7 range, making knee-high by the fourth of June, which I maintain is the new way to gauge a good start to the corn crop. All but the latest-planted soybeans are above ground with most in the V2 stage of development and will have good stands if the recently filled ponds go away quickly. Until next week, don’t forget the umbrella. Jimmy Ayers, Rochester, Sangamon County: Missed reporting in last week, so I need to report that on May 26, Springfield had some serious flooding — 2.5 inches in one hour for a total of 4.6 inches over a three-hour period. Many of the streets were flooded, and several businesses and automobiles were damaged. This past week, we received 2 inches at our place. Throughout the week there were spotty showers much of the time. Most of the corn is hitting the nitrogen and looking pretty good. You certainly can see the streaks. Nitrogen losses have occurred in areas that were flooded, and the corn is still showing a pretty good yellow tint to it. The tallest corn is right at 2 feet. I think most everybody between the spotty showers last week was able to get most of their beans planted. Some of the beans that were planted earlier have come up and look real good. Several people also had the opportunity to put their hay up if they missed the spotty showers. There were a lot of sprayers going last week. David Schaal, St. Peter, Fayette County: Soybean planters rolled pretty hard over Memorial Day weekend until spot thunderstorms showed up last Monday afternoon (May 31). The key word is “spot.” One end of the field may be bone dry and the other end has standing water. I received 1 inch of rain on Memorial Day afternoon. Some hard rain came in 15 to 20 minutes. On Wednesday morning, I received another 0.3 of an inch and Wednesday night another 0.3 of an inch, which was accompanied by heavy lightning. There again, some producers had more and definitely some a lot less. Some of the soybeans that went in last weekend probably will have to be replanted. The verdict is still out. It’s not dry enough to do anything right now, anyway. Of course, last year at this time, we were still trying to get corn in the ground, so we feel like we are still a little ahead of schedule.
Page 7 Monday, June 7, 2010 FarmWeek
CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: We received 2 inches of rain last week. We finished planting soybeans. Corn is getting up to about the V4 or V5 stage and really looking good. Replanted corn is about V2 or V4. Soybeans are just emerging. Those planted earlier in the cold are probably at the first or second trifoliate, and things are looking good. Some areas got too much rain. In the southern part of the county there is still one farmer I know who has a couple hundred acres of soybeans left to plant. They still have corn to sidedress down there, too. In the Cowden area there is still planting to be done, but the northern part of the county is pretty much finished up. Have a safe week out there. Ted Kuebrich, Jerseyville, Jersey County: Jersey County received 1 inch of rain last Wednesday morning and still more rain was predicted for the weekend. Bean planting is just about finished. The corn is growing well with the hot and humid weather, as are the beans. The corn is off to a great start. Prices at Jersey County Grain, Hardin: June 2010 corn, $3.47; fall delivery 2010 corn, $3.34; June 2010 beans, $9.69; fall delivery 2010 beans, $8.93; July wheat, $4.06. Dan Meinhart, Montrose, Jasper County: A lot of corn has been replanted and planted the first time. Some soybeans have gone into the ground. More corn needs to be planted, along with the rest of the beans. Many farmers had up to five days to do fieldwork, while in isolated areas ground conditions did not permit any planting. That makes at least six weeks since we have been able to do any fieldwork. Last Monday afternoon (May 31) rains moved through the area. Some were very heavy. Rains continued last Tuesday night and Wednesday night. Wheat is about ready to start turning, although all this excess moisture has to be hard on it. More rain was forecast for the weekend and this week.
Bob Biehl, Belleville, St. Clair County: After a week filled with rain chances every day, we ended up with a really nice week. We got about 0.3 to 0.4 of an inch over three different showers. Other areas within a few miles, however, received 1.5 to 2 inches of rain. Bean planting has been delayed in those areas, but we are getting close to seeing the end in this immediate area. Bean emergence is in about four days, so weather has been ideal. Still some corn to be sprayed in the area, mainly the May-planted corn. Corn finally looks good after two weeks of warm, dry weather. Wheat harvest looks to be a couple of weeks away. I haven’t seen any whiteheads this year, even with all of the wet weather we have had, so we will cross our fingers. Rick Corners, Centralia, Jefferson County: Another week of hit-and-miss showers. Mostly hit here. One side of town gets 0.25 of an inch and the other side gets 2 inches. I hear the other side of the county is all done planting beans. On this side, we can barely get started. Corn is knee high by the fourth of June instead of the Fourth of July. Kevin Raber, Browns, Wabash County: It is hard to believe it is June and most crops are planted. I’ve got one small patch that we just tiled, but it seems to be getting most of the rain anyway. The corn is beginning to grow and have better color, but there still are a lot of stunted areas in fields. The beans have emerged and taken off quickly — I guess because of the warm temperatures and the moisture, just not excessive moisture.
Dean Shields, Murphysboro, Jackson County: Rain, rain, go away — come again some other day. We’ve had plenty of it in Jackson County. It is keeping farmers out of the field so they can’t finish up on soybeans. Basically all of the corn has been planted. Some fellows have quite a bit of beans to do yet and others not so much. The river is still too high for us to open our locks, so we still have our internal flood water that is keeping us from planting that type of ground. Corn looks pretty decent here and there. Some of it is pretty tall — waist high or better on some fields. Bean size is all over the place, depending on when they were planted, but in most parts stands look good. One guy’s milo field looked pretty good. I found out he had to replant it to get the stand he had. Wheat is coming along and getting the yellow color to it, and it won’t be long and we will be harvesting here. We probably will have to cut some wheat and plant some beans at the same time. Everyone take care with planting season. Ken Taake, Ullin, Pulaski County: Pop-up thunderstorms were the story again last week. I heard of amounts anywhere from 2 inches to some areas that didn’t get any rain. We managed to move around enough that we only lost a couple of afternoons to those showers. We hope to finish planting our soybeans by Monday (today). We still have some corn to replant, but it is in the areas that received some of the heavy rains and it is still too wet. Some farmers in the area are finished with the planting. Hopefully, by the middle of next week, we will be among those. Please do take time to be careful during this hectic planting season.
Reports received Friday morning. Expanded crop information available at FarmWeekNow.com
Hurricanes could complicate Gulf situation BY DANIEL GRANT FarmWeek
Efforts to stop the flow of oil from an uncapped well in the Gulf of Mexico could get even more complicated if recent forecasts are realized. The National Oceanic and Atmospheric Administration (NOAA) last month predicted an “active to extremely active” hurricane season this summer. NOAA predicted a 70 percent chance of 14 to 23 named storms. It also forecast three to seven of those storms could become major hurricanes. Joe Bastardi, Accuweath-
er.com chief meteorologist and a hurricane forecaster, also predicted an active hurricane season. “2010 will be above avera g e,” B a s t a r d i s a i d . “A n d worst-case scenario, it may be in the top 5 to 10 percent as far as impact to land areas in the Western Hemisphere.” Bastardi predicted at least one storm could impact the area in the Gulf affected by the growing oil slick. The slick as of last week had disrupted the Gulf fishing industr y, injured or killed hundreds of wildlife along the coast, and was heading toward beaches
along the Florida panhandle. “A strong tropical cyclone will act as a giant blender and dilute much of the oil,” he said. The oil spill so far has had little impact on grain shipments through the Gulf via the Mississippi River. But that could change if the oil slick switches direction or expands. The spill may not be contained until late summer, based on some projections. “If the oil slick got into what is called the Southwest Passage, which is a canal that goes from New Orleans out to the Gulf of Mexico, we would be looking at severe delays in
getting our corn and soybeans shipped overseas,” said Chad Hart, grain markets specialist with Iowa State University. “If we end up with a bottleneck down there, we could see prices in the U.S. fall from 10 to 50 cents (per bushel).” Cleaning stations for vessels are ready if oil gets into shipp i n g l a n e s, C h r i s B o nu r a , spokesman for the Port of New Orleans, previously told FarmWeek. Elsewhere, an active storm pattern in the Gulf actually could benefit the Midwest this growing season. “Hurricanes for the Mid-
west generally are not a bad t h i n g ,” s a i d Ke v i n B l a ck , insect and plant disease technical manager for GROWMARK. “By the time most get to the Midwest they’ve broken down well and basically are just stable rain fronts.” At this point Black is not concerned about remnants of hurricanes or tropical storms carrying soybean rust spores into the Midwest as the disease did not overwinter well along the Gulf Coast. “Right now the inoculate levels are very low,” Black said. “I’m going to keep an eye on it, but I’m not going to sweat it.”
USDA projects jump in ag exports, $28 billion trade surplus USDA has raised its forecast for U.S. ag exports this year to the second-highest total on record. U.S. ag exports for fiscal year 2010 are now projected to total $104.5 billion, up $4.5 billion from the February forecast and $7.9 billion above 2009 exports. T h e o n l y y e a r U. S. a g exports had more value was in 2008 when sales totaled $115.3 billion. “Strong oilseed and grain shipments support the overall export forecast,” USDA noted in its most recent ag
t r a d e r e p o r t . “A d e l a y i n South American soybean exports and strong demand by China helped push U.S. soybean export volume higher through mid-March.” USDA previously estimated U.S. soy exports this year would reach a record-high 1.455 billion bushels. Meanwhile, corn exports in recent weeks have been bolstered by a flur r y of purchases from China, which in recent years has been a competitor to the U.S. in the world corn market. “Things are recovering in
the coarse grain export business, driven in part by Chin a ,” s a i d E r i ck E r i ck s o n , special assistant to the presid e n t o f t h e U. S . G r a i n s Council. U S DA l a s t m o n t h a l s o increased its export forecast for livestock, poultr y, and dairy products by $200 million to $20.3 billion due mostly to a bump in broiler meat shipments. The dairy export forecast was raised slightly to $2.9 billion, but beef exports were left unchanged ($3 billion), and pork exports were
reduced by $100 million to $4.1 billion due to tighter supplies limiting U.S. shipments. Overall, the U.S. ag sector was projected to finish the year with a $28 billion trade surplus, up from $22.5 billion in 2009. “Expor ts play a significant role in the well-being of U.S. agriculture,” Erickson said. “Illinois is particularly export-focused” especially with access to outside markets via the Mississippi River. Erickson looks for future market growth in areas such
as Southeast Asia and North Africa. One product gaining more popularity in the world market is distillers dried grains (DDGs), a byproduct of ethanol production, he said. “As ethanol production c l i m b s , w e e x p e c t ( U. S. ) DDGs exports need to double (annually) from five to 10 million tons,” Erickson said. Total domestic production of DDGs is expected to increase from 24 million tons in 2010 to 35 million tons in the near future. — Daniel Grant
FarmWeek Page 8 Monday, June 7, 2010
LIVESTOCK
Retail meat prices sizzle heading into summer BY DANIEL GRANT FarmWeek
Retail meat prices that inched up prior to the unofficial start of the grilling season (Memorial Day weekend) could be poised to reach record highs by this summer. A recent edition of the CME Group’s Daily Livestock Report showed consumer prices from March to April increased 2.8 percent for beef and 1.1 percent for pork. The boost to beef prices reportedly was the largest month-tomonth increase since November 2003. “Retail beef and pork prices have begun to heat up,” authors of the Daily Livestock Report noted. And that trend could continue, according to John Anderson, livestock economist with the American Farm Bureau Federation. “We expect to see fairly high retail meat prices this summer and there is a chance (prices) could approach record levels,” Anderson told the RFD Radio Network. Meat and livestock prices are affected by everything
from feed costs and shipping rates to the stock market. But Anderson believes much of the current situation is the result of basic supply and demand forces. “We have very tight supplies of all the major meats at the same time. If you go back to 2008 and 2009, there was a fairly strong incentive for contraction (in the livestock industry),” Anderson said. “As economic conditions slowly improve, we seem to be seeing demand pick up as well,” he continued. “It’s a situation that results in higher (meat) prices.”
Retail meat prices in recent weeks trended up even as livestock prices slipped from recent highs. Cattle prices, for example, last week were in the 92- to 93-centsper-pound range compared to $1-plus per pound last month. “(Livestock) prices have come down quite a bit the last couple of weeks,” Anderson said. “But retail prices continue to go up” as there generally is lag time between farm gate prices/livestock production and retail meat prices. Anderson does not believe
increased ethanol production is the main driver of higher meat prices despite recent media reports that suggested otherwise. Corn and feed prices have declined significantly from historic highs of 2008. “It’s misleading to say now that we’ve got record-high meat prices it’s because of ethanol,” the economist said. That assumption “really ignores the fact that in 2009 we had the worst economic recession in two generations that just destroyed (meat) demand,” leading to heavy losses and contraction in the
livestock industry and ultimately tighter meat supplies. Overall, Anderson predicted livestock prices this year should remain “good” despite the recent downturn. “There is a lot of support for prices both from the supply and demand side,” he said. And “these (livestock) producers need periods of profitability to rebuild equity,” he added. “If we don’t get periods of profitability, meat ultimately will be a whole lot more expensive because there will be a lot fewer people producing it.”
IBA summer conference to be held June 28 to 30 The Illinois Beef Association (IBA) will host its annual summer conference June 28 through 30. The event will be held at the Timber Creek Conference Center in Sandwich. It will include tours of farms as well as an inside look at the food industry. Monday, June 28, will feature a tour of the Jamie Willrett farm in Malta; an update on facility sitings from Nic Anderson of the Illinois Livestock Development Group; a tour of Larson Farms in Maple Park; a meet-and-greet with urban legislators; and an ag trivia night.
Conference attendees on Tuesday, June 29, will receive a tour of the Kitchens of Sara Lee in Downers Grove and of McDonald’s Hamburger University in Oak Brook. Tours of Alan Adams’ farm in Sandwich and Gary Dau’s farm in Sheridan also will be Tuesday along with a reception for Steve Foglesong, a beef producer from Astoria and president of the National Cattlemen’s Beef Association. An awards program will follow. Wednesday, June 30, will feature work-
shops on “Ranching for Profit,” and “Three Secrets of Increasing Profit,” along with “Financing for Young Farmers” and “Coordinated Feeding Services and Risk Management.” For more information about the summer conference, contact IBA at 217-7874280 or register online at {www.illinoisbeef.com}. The deadline for conference registration is June 21. Room reservations must be made directly with the Timber Creek Inn by calling 630-273-6000. Ask for the Illinois Beef Association special rate.
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FarmWeek Page 9 Monday, June 7, 2010
FROM THE COUNTIES
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ASS-MORGAN — The date of the Cass County Fair listed in “News and Notes” is incorrect. The correct dates are July 12-17. HAMPAIGN — Applications for the Champaign County Farm Bureau Leadership Academy are being accepted. The five-class session will be from 5:30 to 9 p.m. Monday, Aug. 2, through Monday, Aug. 30, with the exception of Monday, Aug. 23, when the class will be from 10 a.m. to 5:30 p.m. A District 12 dinner meeting will follow that class. Call the Farm Bureau office at 217-3525235 or visit the website at {www.ccfarmbureau.com} for an application or more information. • The Prime Timers will meet at 10 a.m. Thursday at the Farm Bureau auditorium. John Paul will present a program on “150 Years of Retail Service in Champaign.” Cost is $5. Call the Farm Bureau office at 217352-5235 for reservations or more information. ANCOCK — The District 9 counties (Adams, Brown, Hancock, McDonough, Pike, and Schuyler) are sponsoring a Young Leader event to the Quincy Gems game at 6:30 p.m. Friday, June 25. Those members 35 and under who would like tickets may contact the Farm Bureau office at 217-357-3141 or email hcfb@frontier.com. ENRY — Steve Johnson, Iowa State University Extension farm and ag business management specialist, will
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be the speaker at a marketing seminar at 6:15 p.m. Thursday, June 17, at St. Paul Lutheran Church, Orion. Dinner will be served. Mike Schaver, Gold Star FS grain merchandiser, will provide an update. Cost is $18. Call the Farm Bureau office at 309-937-2411 or the Rock Island County Extension office at 309-757-9978 for reservations or more information. EE — Steve Johnson, Iowa State University Extension farm and ag business management specialist, will be the speaker at a marketing workshop at 7 p.m. Wednesday, June 16, at the Quality Inn, Dixon. Lee, Ogle, and Whiteside County Farm Bureaus, and Sauk Valley Bank are sponsoring the meeting. Call the Farm Bureau office at 857-3531 by Friday for reservations or more information. • Lee and Bureau County Farm Bureaus will sponsor their first golf outing Friday, July 9, at Shady Oaks Country Club, Amboy. It will be a 9 a.m. shotgun start. Proceeds will benefit the Bureau and Lee County Agriculture in the Classroom programs. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net for more information. • The Marketing Committee will sponsor a bus trip Wednesday, Aug. 4, to see the Chicago Cubs vs. Milwaukee Brewers game at Wrigley Field. Cost is $50 for members and $55 for non-members. Registration and money are due to
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the Farm Bureau office by Wednesday, June 30. Reservations are on a first-come, firstserved basis. Call the Farm Bureau office at 815-857-3531 for more information. ERCER — Dan Zwicker, ADM market analyst, will be the speaker at a summer market outlook meeting at 7:30 p.m. Thursday at the Farm Bureau office. Call the Farm Bureau office at 309-5825116 for more information. EORIA — A summer market outlook meeting will be at 6:30 p.m. Tuesday, June 22, at the Farm Bureau Park, Kickapoo. Raber’s will cater a ribeye sandwich dinner. Andy Shissler, Roach Ag Marketing, will be the speaker. Tickets are $5 and may be purchased from a director or at the Farm Bureau office. • Farm Bureau will sponsor a bus trip to Heartland Dairy in northeastern Missouri Thursday, June 24. Participants will tour the Community campus, cheese building, creamery, Christian school, milking carousel, and the goat farm. Cost is $40. Call the Farm Bureau office at 686-7070 by Thursday, June 17, for reservations or more information. OCK ISLAND — Steve Johnson, Iowa State University Extension farm and ag business management specialist, will be the speaker at a marketing seminar at 6:15 p.m. Thursday, June 17, at St. Paul Lutheran Church, Orion. Dinner will be served. Mike Schaver, Gold Star FS
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modity trading exercise, Commodity Challenge, will be offered to members to practice their marketing skills. The top-scoring members who sign up before June 30 are eligible to win cash from a pool donated by sponsors. Call the Farm Bureau office at 217442-8713 for login information. “From the Counties” items are submitted by county Farm Bureaus. If you have an event or activity open to all members, contact your county Farm Bureau manager.
Prairie Bounty listings updated Illinois Farm Bureau and Illinois Specialty Growers Association have updated Prairie Bounty of Illinois, a guide to the state’s direct and community farm markets and the fruits, vegetables, herbs, and Christmas trees they purvey. The farm market directory contains the market information of more than 850 individual producers and is arranged by county in alphabetical order. Information available includes contact information, products available, method of sale (roadside, pickyour-own, cut-your-own, wholesale, on-farm sales, etc.). A separate section lists Illinois’ community farm markets. Such markets are proliferating across Illinois in part as a result of consumer demand for fresh farm produce locally grown within a short drive. To receive a printed copy of Prairie Bounty, send $3 for postage and handling to Cashier, Illinois Farm Bureau, Attn: Prairie Bounty, Illinois Farm Bureau, P.O. Box 2901, Bloomington, IL 61702-2901. Prairie Bounty also is available electronically at {http://www.specialtygrowers.org/}, where web visitors can search for producer markets and community farmers’ markets. If a producer currently not listed in the Prairie Bounty of Illinois wishes to have his farm operation included, he may contact Diane Handley at 309-557-3662 or handley@ilfb.org.
ISA names new CEO The Illinois Soybean Association (ISA) Board of Directors last week selected Craig Ratajczyk as its new CEO. Ratajczyk, who has been ISA’s senior director since 2009, will transition into his new position when current ISA CEO Lyle Roberts retires in September. “We look forward to working with Craig as CEO,” said Ron Moore, ISA chairman and Warren County soybean grower. “He has extensive experience in promoting U.S. soybeans overseas, and we expect he will use that experience to maintain the leadership position Illinois has held in the soybean industry.” Ratajczyk previously served as director for Craig Ratajczyk global issues and alliances with the U.S. Soybean Export Council and held several positions with the American Soybean Association’s international marketing program. He also serves as the Navy Intelligence Reserve Unit U.S. Strategic Command 0319’s executive officer. “This is a tremendous opportunity for me to help Illinois soybean farmers position themselves globally as a leader in research, marketing, and international development,” Ratajczyk said.
Ewing field tour set for Thursday
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grain merchandiser, will provide an update, and Jim Purlee will share information about Big River Resources. Cost is $18. call the Rock Island Extension office at 309-7569978 for reservations or more information. • Farm Bureau will promote Ag Night Sunday, June 27, at the River Bandits baseball game. Tickets will be discounted $2 off the box seat price. Call the Farm Bureau office for more information. ERMILION — An online, interactive com-
Call or visit o our ur website to find a br branch ancch near you. you
800.444.FARM 800.444 .F FARM A fcsillinois.com/contact.html fcsillinois .com/ccontact.html
Crop producers will find valuable, research-based information at the spring agronomy tour Thursday at the University of Illinois Ewing Demonstration Center. The tour will begin at 9 a.m. A new feature this year is the inclusion of vegetables studies, which will be of interest to both commercial vegetable growers and home gardeners. Dennis Epplin, U of I Extension crop systems educator, has listed the following events for the day: Long-term continuous no-till plots; long-term soil fertility plots; wheat variety trials; corn hybrid studies; sweet corn, tomato, and pepper studies; and clover plots. The Ewing Demonstration Center is located approximately 12 miles northeast of Benton in Franklin County. From Illinois Route 37, turn east on Ewing Road and watch for signs. If weather conditions are questionable, call 618-242-9310 before traveling.
FarmWeek Page 10 Monday, June 7, 2010
PROFITABILITY
USDA/DOJ workshops focus: competition, antitrust enforcement BY CHUCK SPENCER
Producers have a stake in the U.S. Department of Agriculture/Department of Justice workshops entitled “Agriculture and Antitrust Issues in Our 21st Century Economy.” They should be interested in what is being said and the outcomes, expected in 2011. Two of the five historic workshops have been conducted, with the remaining three scheduled throughout this year.
The regional location selected is relevant to the issues highlighted at each meeting. The March 12 session in Ankeny, Iowa, focused on crop farmer and livestock contract production issues. The May 21 workshop in Normal, Ala., addressed poultry production, contracting, and challenges in the marketplace. A full review of the process, meetings and testimony is archived at:
Milk price posts another gain The Class III price for milk adjusted to 3.5 percent butterfat for the month of May was $13.38 per hundredweight. This is a 46-cent increase from the previous month. There have been two consecutive months of higher prices, adding 60 cents to the price of milk since April, and giving producers a much-needed shot in the arm during June Dairy Month. Higher prices coupled with encouraging demand are putting a solid floor in the milk market.
{http://www.justice.gov/atr/pub lic/workshops/ag2010/index. htm#overview}. The next meeting is June 25 in Madison, Wis., and will focus on the dairy industry, which has undergone significant economic challenges. Chuck Spencer There has been a reasonable amount of discussion about the discrepancy in milk prices at the farm gate and the supermarket and whether that discrepancy should have been reflected on the store shelf. Marketplace transparency, marketing in the dairy industry, and a likely discussion of the dairy industry structure, will be on the agenda June 25.
While each individual issue is important, it’s more important to watch the overall trends expressed throughout the workshops. Will the comments indicate the need for a general restructuring of the marketplace? Would more aggressive antitrust enforcement lead to better markets or result in higher costs for farmers? Cooperatives have a distinct interest in participating in these workshops. Producers have supported laws allowing cooperatives to exist and their function of helping the producer secure inputs as well as help with marketing. It is important that we make sure we know what we are asking for in these workshops. If more regulations are enacted, will we inadvertently encourage larger-scale opera-
tions so managers can specialize in regulatory, marketing, and production knowledge to spread their cost of production over more units? The National Council of Farm Cooperatives (NCFC) website {http://www.ncfc.org/content /view/296/131/} contains our perspective. Messages supporting the value co-ops bring to their members are needed. A report containing recommendations is likely going to be written in 2011. Will it contain your interests? Make sure and use the NCFC website to make your voice heard. Chuck Spencer is GROWMARK’s director of government affairs. His e-mail address is cspencer@growmark.com.
Brazil beginning its own railway revolution three locomotives, each unit train has a capacity I believe that our farms in Tocantins, Brazil, are of 7,300 metric tons, or if it contained all soybeans, 272,290 bushels. right in the middle of that same type of railroad The railroad is going to significantly cheapen revolution that our U.S. forefathers experienced. The government of Brazil is transportation costs, the single largest limitation on the expansion of acreage in Brazil. in the first stage of a massive To ship soybeans 120 miles one way by truck planned buildup of its rail to a Bunge facility from our farm, the cost is 52 capacity — which Brazil descents per bushel. Current rail perately needs. quotes to ship the soy the 720 The first part miles one way from Palmas to of the expanthe Port are $1.10 per bushel — sion, the Fersix times the distance for just rovia Note-Sul, twice the cost. or North-South Phil Corzine U.S. farmers still will have an Railway, is passedge in transportation costs: ing just 50 miles from our farms U.S. rail freight and will, when it’s to the Gulf from complete in two the Midwest, a or three years, similar distance, connect the deepoften runs only water ports of 60 cents, and Belem and Sao barge rates are Luis on the north even lower. coast of the counBut the curtry to the central rent gap in profBrazilian city of itability between Anapolis. U.S. and Brazilian On its way soybean producsouth, it will pass tion is largely through or near caused by the both the largest lower transport current and potencosts in the U.S., tial future soybean and you only production regions Vale do Rio Doce, a rail company in Brazil, has purchased the need to glance at in the country. right to operate this grain-loading facility at the Colinas do Tocanall the lines on a The new rail line tins, Brazil, platform on the new North-South Railway. (Photo rail project map is being built by the courtesy of Vale) running east, government of west, north, and south to see that Brazil has Brazil, with operating rights leased to private rail plans to change that. companies. Since the government owns the line, Things happen slowly in Brazil — mind companies lease land from it in loading “platnumbingly slow. So slow that at times you can forms” in order to load and ship cars. At the Palmas Tocantins platform, for exam- be lulled into thinking that nothing is happening ple, a building lot of about five acres designated and never will. But there are new train tracks leading into for grain shipping will lease for about $90,000 the center of Brazil’s vast underdeveloped agriU.S. dollars for 15 years. cultural regions which will soon have trains The rail itself is heavy gauge, 47-inch spacrolling out with loads of soybeans, ethanol, ing, and Vale, the company that purchased the biodiesel, and perhaps even corn. right to operate this already-complete northern stretch of the line from Palmas to the Port of Phil Corzine is general manager of South American Sao Luis, will begin running four unit trains on Soy, a global production management and investment it in January 2011. Vale’s unit trains consist of 80 cars pulled by company. His e-mail address is pcorzine@agpage.com. BY PHIL CORZINE
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-$47.44 $39.04 $55.15-$71.00 $61.98 n/a n/a This Week Last Week 26,258 27,638 *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 $72.74 $75.74 $53.83 $56.05
Change -3.00 -2.22
USDA five-state area slaughter cattle price Steers Heifers
This week $95.13 $95.13
(Thursday’s price) Prv. week Change $93.88 1.25 $93.90 1.23
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 108.01 108.41 -0.40
Lamb prices Confirmed lamb and sheep sales This week 639 Last week 614 Last year 711 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $116-$122.50; few, $132. Good and choice 1-2: 60-90 lbs., $130. Slaughter Ewes: Utility and good 1-3: $43-$45. Cull and utility 1-2: $37.50-$43.
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 05-27-10 5.7 12.1 47.4 05-20-10 4.4 20.7 44.8 Last year 9.4 10.3 33.1 Season total 1330.7 844.5 1332.1 Previous season total 1079.6 977.4 1252.6 USDA projected total 1445 900 2000 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
FarmWeek Page 11 Monday, June 7, 2010
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Crops off to good start Even with a few scattered issues with this year’s corn, soybean, and spring wheat crops, one cannot deny they are having a great start. The good/excellent ratings are at 76 percent for corn, and 85 percent for spring wheat. Soybeans will have their first condition ratings this week. They should be nearly as good as corn, if not as good. There are scattered pockets where the crops are not as good, mostly because of localized heavy rains over the last month. That has caused some replanting and some ponding in fields, but not an unusually large amount. Meanwhile, the May rains kept soil moisture levels very high. And the warmer temperatures over the last couple of weeks have stimulated plant growth. But, as analysts are quick to note, good early ratings are not necessarily indicative of a good crop. In the past, we had many crops that started with a lot of promise, only to have moderate to severe difficulties before they were harvested. On average, the condition ratings for corn and soybeans tend to decline modestly from the beginning of the growing season to the end. Even good crop years have had temporary “hiccups.” Condition ratings declined significantly in early August in both 1994 and 2004 before ris-
Basis charts
ing again into season’s end. And both corn and soybean crops struggled through all of last year’s growing season, only to have crops produce record yields. There are some minor concerns for soybeans with 26 percent of the crop to still be planted and short-term forecasts calling for intermittent weather systems. But planting is on pace with the average of the 2000s and ahead of previous decades. Maybe more important is the attention this last week’s La Nina forecast from the National Oceanic and Atmospheric Administration (NOAA) received. NOAA indicated the conditions were favorable for a transition to La Nina conditions in the Pacific Ocean during June – August 2010. There is a correlation between La Nina conditions in the Pacific Ocean and drier conditions in the Midwest if they occur during the growing season. However, the timing of the onset of a La Nina, and the speed at which the Pacific transitions from an El Nino to a La Nina, play a part as well. The sooner the condition develops and the faster it transitions to a La Nina the higher the odds of stressful weather in the Midwest during the growing season. Still, it needs to be noted the climate in the Pacific only seems to be transitioning to a La Nina. The data have yet to confirm that a La Nina is under way. Even NOAA indicates only that conditions are favorable. Australian climate forecasters’ comments are similar, and they may be the best at forecasting the Pacific climate. In the end, there’s reason to expect good yields and large crops this year. But, the shift that appears to be under way in the Pacific will keep everyone “on their toes” this summer. It’s likely the markets will at least have a scare somewhere along the way. But if the Pacific transitions slowly into a La Nina, it may end up only resulting in a warm, dry fall. That would be the perfect way to end a growing season. And after last year, farmers would heartily welcome that. AgriVisor endorses crop insurance by
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2009 crop: Chicago July futures closed below $3.50, enhancing the odds of seeing prices drop further before they reach the 40-week bottom anticipated in mid-June. July could drop to $3.40, maybe lower. Use rallies to wrap up old-crop sales. 2010 crop: Hold off on catch-up or additional sales. We expect to see one or two opportunities to make sales later this summer. Fundamentals: Warmer temperatures improved growing conditions and sparked crop development. The latest weekly crop progress report reflected the improvement, boosting the good-to-excellent rating to 76 percent. Favorable weather is expected to limit corn rallies, unless outside influences are able to more than offset it.
Soybean Strategy 2009 crop: Limited producer sales and early talk about possible late-summer weather problems sparked last week’s rally. Still, we see signs that demand is slowing, capping upside potential unless there’s a crop problem this summer. Use rallies to get old-crop sales wrapped up. 2010 crop: Even with last week’s rally, there’s little to sustain strength unless weather threatens the new crop in a serious way. Still, even though there’s near-term downside price risk, there should be another sales opportunity after the June price cycle lows. Hold off sales unless November futures rebound to $9.40. Fundamentals: Demand data continue to indicate there’s little reason for prices to sustain rallies at this time. Weather may be delaying late planting a little, but there’s still time to plant soybeans. Our exports stay slow. Chinese imports are expected to slow. Crush margins are low enough to cause small/medium plants to curtail operations.
Wheat Strategy
2009 crop: Chicago July futures slipped below critical support at $4.47. The next support is at $4.29. The seasonal trend and the 40week cycle count still point down into a late June or July low. 2010 crop: New-crop sales are 40 percent complete. If you price wheat at harvest, you should be 60 percent complete. Given last week’s breakdown, and the close proximity of support, we are inclined to hold off pricing until after the coming cyclic lows — if possible.
Fundamentals: Upside momentum in the wheat prices will be difficult to initiate with new-crop supplies starting to fill pipelines. Winter wheat harvest is pushing into north Texas and Oklahoma. Weather permitting, Kansas harvest is not far behind. Early reports indicate good yields and test weights. Protein is about normal, but it’s still a little hard to gauge. Last year’s crop had disappointing protein levels, resulting in premiums for wheat with levels 12 percent and higher.
FarmWeek Page 12 Monday, June 7, 2010
PERSPECTIVES
U.S. needs more than ‘fat chance’ to reduce child obesity
If the White House had a better sense of humor, its new report on obesity would promote what a comedian once described as the world’s most effective diet: You can eat anything JOHN RIGOLIZZO you want, but you have to eat it in the company of fat, guest columnist naked people. Alas, the White House Task Force on Childhood Obesity took a more earnest approach. Recently at an event hosted by First Lady Michelle Obama, it issued a 70-point plan for reducing the childhood obesity rate. Unfortunately, the First Lady and her friends devote more time to telling farmers what they should do than to helping us improve our productivity through innovation and reform. Right now, says the report, about one in five American kids is overweight. The task force would like to see this figure (so to speak) reduced to just 5 percent over the next 10 years. That’s a worthy goal because obesity is indeed a serious problem. But let’s pause for a moment and reflect upon an important fact. In much of the world, children don’t have enough to eat. Famine and malnutrition are deadly afflictions. In the United States, however, we have such an abundance of affordable food that we have to worry about overeating rather than under-eating. I don’t mean to minimize the importance of fighting obesity — but I do want to keep in mind that some problems are preferable to others. Let’s not forget to count our blessings. We don’t suffer from chronic food shortages because American farmers are so amazingly productive. The White House now would like to harness our energies in the war on obesity. Americans need to eat more fruits and vegetables, says the task force. It calculates that the average person already consumes 644 pounds of fruits and vegetables each year. It recommends an increase of 453 pounds, or more than 70 percent. If Americans demand more fruits and vegetables, then farmers like me will grow them. That’s the easy part. Markets always have been the best way of deliv-
ering products to consumers. Yet the task force seems attracted to a different approach: It would have Washington try to steer farmers toward growing additional fruits and vegetables, in the belief that if the supply increases then the demand will follow. That’s like thinking kids will eat more spinach if we double the portions we put on their dinner plates. This is a miracle beyond the power of legislation. If lawmakers want to increase the supply of fruits and vegetables, they have better options than issuing stern lectures about eating your veggies — or trying to tell farmers what we should grow. They can get started right now simply by embracing trade and technology. Free-trade agreements are excellent ways of boosting food supplies. Many of our fruits and vegetables already come from Latin America. In New Jersey, I can grow peaches but not bananas. So we ought to expand trade — especially agricultural trade — with this region. The White House should persuade its allies in Congress to set aside their protectionist fears and approve pending trade agreements with Colombia and Panama. They’re long overdue. Technology also can help put more fruits and vegetables into the hands of Americans. Land already devoted to fruits and vegetables might be made more productive.
One constant enemy is frost. Earlier this year, subfreezing temperatures destroyed an enormous amount of citrus, strawberries, and tomatoes in the Southeast, especially Florida. Food prices shot up immediately. Writing in a recent issue of the journal Regulation, Henry I. Miller of the Hoover Institution proposed a creative solution. He suggested that scientists work to develop a special bacterium that can help protect fruits and vegetables from frost. The good news is they’ve already done a lot of work in this area: Researchers began to address the problem a generation ago and came close to commercializing a product that relied on “ice-minus bacteria.” The bad news is that the federal government smothered it with unnecessary regulations. A tool that holds the potential to save fruits and vegetables from killer frost remains out of reach. We need a regulatory system that makes sound decisions based on science — one that works with us rather than against us. In the fight against obesity, will Washington encourage free trade and technological innovation? Let’s hope the odds are better than a “fat chance.” John Rigolizzo Jr. is a fifth generation farmer who raises fresh vegetables and field corn in southern New Jersey. The family farm manages both retail and wholesale markets. He is a board member of Truth About Trade and Technology, whose website is (www.truthabouttrrade.org}.
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Wholesome wave: Just what the doctor ordered Funny how successful ideas come about. It takes just one person to think big and outside of the box — someone with passion and energy, who really wants to makes a difference. And, of course, it doesn’t hurt to have the legacy of Paul Newman backing you. The Wholesome Wave Foundation, a nonprofit TRACY organization founded in TAYLOR GRONDINE 2005, is just that — a big, out-of-the-box idea that has the potential to change millions of people’s lives for the better. Founded by former Agriculture Department Under Secretary Gus Schumacher and award-winning chef Michel Nischan, Wholesome Wave supports increased production of and access to healthy, fresh, and affordable locally grown food. The organization came about when the “King of Cool” himself (Newman) encouraged Nischan (who co-owned the restaurant “Dressing Room” with the actor) to convey his culinary work and optimistic ideals into an organization in which he could help people eat healthier. Newman became one of Wholesome Wave’s first financial backers. With support from a mix of foundations, corporations, government agencies, community associations, and universities, Wholesome Wave has a two-pronged
approach: provide access to fresh fruits and vegetables to under-served communities, while providing business to farmers. Under the organization’s Double Value Coupon Program, through private funds, people can double the value of their federal food stamps, also known as the Supplemental Nutrition Assistance Program (SNAP), when used at participating farmers’ markets. The program improves the effectiveness of the SNAP program, as well as the Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Farmers Market Nutrition Programs
(FMNP) and the Senior FMNP. What began in 2008 at 12 farmers’ markets in several states has grown into more than 60 markets in 12 states and the nation’s capital. Looking in another direction, Wholesome Wave is now heading to the doctor’s office. In an effort to contain exploding health care costs, the organization has come up with what it’s dubbing as an “Rx for Vegetables.” The program would encourage health care providers to write prescriptions for fresh fruits and vegetables to vulnerable patients. The prescriptions could then be exchanged at local farmers’ markets for a week’s worth of fresh produce. Schumacher says his goal ultimately is that if patients lower their weight, blood pressure, or cholesterol under the new Rx program and are on Medicare or Medicaid, the doctors would then be reimbursed for the fruit and vegetable prescriptions under the new health care bill. Doctors predict that for every 10 points dropped in blood pressure, there’s significant savings in health care costs. Wholesome Wave’s big, out-of-the-box ideas are not only improving access to healthy foods, it is bringing communities together one by one. Paul Newman would be proud. Learn more about Wholesome Wave at {http://wholesomewave.org/}. Tracy Taylor Grondine is director of media relations for the American Farm Bureau Federation. Her e-mail address is tracyg@fb.org.