THE ILLINOIS WHEAT crop has good yield potential based on results of a Southern Illinois wheat tour. .........................................2
THE ILLINOIS SENATE grappled with the state’s debt and the budget last week as legislators worked to beat the June 1 deadline. ................3
A ROLLER COASTER ride of a spring weatherwise in Illinois could be in for a change in the weeks ahead. ..................................10
Monday, May 30, 2011
Two sections Volume 39, No. 22
Federal agency reviewing farm vehicle rules BY KAY SHIPMAN FarmWeek
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The Federal Motor Carrier Safety Administration (FMCSA) is reviewing regulations for operation of certain farm vehicles and is seeking public comment on the interpretation of existing rules. The agency is requesting the information be published in the Federal Register. One of the proposals relates to a new interpretation of “for-hire carrier” rules and farmers with crop-share leases who truck their landlords’ share of the grain. Illinois Farm Bureau President Philip Nelson emphasized the need for Farm Bureau involvement: “It is important for the county Farm Bureaus and members to weigh in and state their case to get our points across on these issues and on the impact to agriculture. “Common sense needs to be part of the equation,” Nelson added. Candice Tolliver, FMCSA’s director of communications, told FarmWeek: “This action (a review and request for comments) is being taken to provide FMCSA’s stakeholders and the general public with
opportunity to share their thoughts and views on how the safety regulations should be interpreted and applied to certain agricultural operations.” “The agency continues to work closely with the Illinois Department of Transportation (IDOT) and Illinois Farm Bureau to address these important issues and looks forward to receiving robust public comment,” Tolliver said. On May 23, FMCSA issued a public notice requesting comment on previously published regulatory guidance on the distinction between interstate and intrastate commerce with regard to agricultural operations, Tolliver said. The notice also requests public comment concerning the distinction between private
and for-hire farm vehicle operations and whether off-road farm equipment or implements of husbandry operated on public roads for limited distances are considered com-
director of local government, noted the interstate vs. intrastate issue dates back to 2007 and enforcement of the Unified Carrier Registration (UCR) rule. Under the current rule interpretation, virtually any grain hauled to market is considered to be destined for export outside of Illinois or the U.S. unless the grain is processed in the state first. That means farmers who transport the grain must be registered for UCR and have a U.S. Department of Transportation (USDOT) number. FMCSA wants public input on distinguishing between intraand interstate commerce related to agriculture. “We have known that different states enforce the rules differently,” Rund explained. “This issue has demonstrated
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mercial motor vehicles, she added. “We are pleased that our efforts with the DOT and FMCSA have resulted in progress being made on addressing our trucking enforcement concerns,” said Adam Nielsen, Illinois Farm Bureau national legislative director. Kevin Rund, IFB senior
how extreme those differences are.” The second issue centers on crop-share leases and interpretations of for-hire carrier rules. Recently, the U.S. Department of Transportation (DOT) interpreted federal rules to mean farmers who truck their landlords’ share of grain would be considered “for-hire carriers” and no longer qualify for an agricultural exemption from having to obtain a commercial drivers’ license (CDL). “That interpretation would have a dramatic impact on farmers with crop-share leases if the rule interpretation is enforced,” Rund said. FMCSA has presented its “understanding” of crop-share arrangements. The agency is See Vehicles, page 3
Ag groups, chairman intensify push
FTAs mean big dough for wheat sector BY MARTIN ROSS FarmWeek
The nation’s leading ag groups “celebrated” national World Trade Month with the same call they issued during last year’s observance: Pass free trade agreements (FTAs) with South Korea, Colombia, and Panama. Leading off an FTA push by Farm Bureau and key commodity groups, House Ag Committee Chairman Frank Lucas (R-Okla.) said it is important that farmers have a chance at that $2.5 billion cumulative market after a four-year battle to get the FTAs passed. The administration has held back on submitting the agreements for a congressional vote amid demands for job training funds for workers “displaced” by trade. National Association of Wheat Growers (NAWG) spokesman Melissa George Kessler argues the economic
impact of FTAs extends beyond the farm gate — into the equipment, real estate, financial, milling, baking, and transportation sectors. “These are jobs bills, no question,” she told FarmWeek.
Today, half of the U.S.’ annual wheat crop is exported, Kessler said. She emphasized the Colombia FTA is “very important right now,” because of Canada’s own Colombia agreement set to kick in this summer. Colombia depends on largely U.S., Canadian, and
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Argentine imports to satisfy 97 percent of its wheat demand. In 2007-08, the U.S. captured a nearly 70 percent share of Colombia’s wheat market, at $330 million in export value. Wheat was the second largest ag export to Colombia that year, with soft red winter wheat (the type raised in Illinois) alone accounting for 229,000 metric tons (8.4 million bushels). But Kessler notes U.S. market share has declined in recent years because of “trade preferences” granted other countries. Without the Colombia agreement and the import tariff reductions it would provide, U.S. wheat growers stand to lose $100 million in annual sales, NAWG warns. “When this Canadian agreement is in place, all bets are off,” Kessler argued. “Colom-
For more on Illinois’ wheat crop, see page 2 bian millers have told us they’d prefer to purchase U.S. wheat, but the economics just aren’t going to work when you can get (wheat) duty-free from Canada but not from the U.S.” Dave DeVore, wheat merchandiser with Teutopolis’ Siemer Milling Co., noted an increase in wheat plantings in Illinois last fall. However, DeVore stressed market access is crucial to helping wheat revenues keep pace with those from corn and soybeans and thus keeping wheat “in the rotation.” “Those (import) barriers need to be lifted,” he said. “It’s just important to the industry all around, as far as what we produce in the state. We need to make these markets available whenever we can.”
Illinois Farm Bureau®on the web: www.ilfb.org