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
Periodicals: Time Valued
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
FarmWeekNow.com Learn more on how to comment on the federal motor carr i e r r u l e s a t F a r m We e k Now.com.
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
FarmWeek on the web: FarmWeekNow.com
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
FarmWeek Page 2 Monday, May 30, 2011
PRODUCTION
Quick Takes HOLIDAY TANKS AND ETHANOL — For millions of Americans, Memorial Day weekend marked the unofficial start to summer. Despite gas prices that are nearly 40 percent higher than a year ago, many families across the nation celebrated the holiday with a road trip. According to the AAA auto club, an estimated 31 million Americans took to the highways this past weekend. According to AAA’s survey of traveler intentions, the average distance traveled by Americans during the Memorial Day holiday weekend was expected to be 792 miles. So, what does Memorial Day have to do with ethanol? AAA concluded the average American family traveling this Memorial Day weekend saved more than $31 simply due to the impact of ethanol in holding gas prices down. Aggregate gasoline savings due to ethanol this weekend was estimated at $440 million, based on AAA estimates of average trip length. NEW TAX HURTS FARMERS — A new 3 percent withholding tax on government payments for goods and services has the potential to erode funds for conservation purposes and create serious cash-flow challenges for farmers, according to the American Farm Bureau Federation (AFBF). In a statement submitted to the House Small Business Subcommittee on Contracting and Workforce on the tax, AFBF said it would oppose the new tax, which is slated to begin in 2013. AFBF supports legislation introduced by Reps. Wally Herger (R-Calif.) and Earl Blumenauer (D-Ore.) that would repeal the withholding requirement. “This has the potential to create cash-flow problems for farmers and ranchers because inputs like seeds and fertilizer are often purchased months before a commodity is sold and income is received,” AFBF stated. The tax also poses potential to reduce the effectiveness of conservation programs. For example, if a farmer or rancher were to receive an $11,000 Conservation Reserve Program payment, $330 would be unavailable for conservation efforts because of the tax. RECORD TORNADO YEAR — This year will go in the records for deadly tornadoes, according to the National Oceanic and Atmospheric Administration (NOAA). The tornado that destroyed Joplin, Mo., is the deadliest single tornado to strike the U.S. since modern recordkeeping started in 1950. April set a new record for the month with 875 tornadoes nationwide. The previous April record was 267. Historically, May is the most active month for tornadoes with an average of 298. The record for May was 542 tornadoes in May 2003.
(ISSN0197-6680) Vol. 39 No. 22
May 30, 2011
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2011 Illinois Agricultural Association
STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager
Richard Verdery (rverdery@ilfb.org) Classified sales coordinator
Nan Fannin (nfannin@ilfb.org) Director of News and Communications
Dennis Vercler Advertising Sales Representatives
Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
Participants of the Southern Illinois Wheat Tour, left to right, Kevin Luthy, a wheat grower from Marissa; James Harper of ADM Milling in St. Louis; and Teresa Buccheit, a crop scout with OptiCrop, examine leaf and head samples for disease in a field in St. Clair County. Tour participants last week found a number of diseases beginning to show in the crop, but yield potential still appears to be good. It was projected to average 62 bushels per acre compared to 56 bushels last year. (Photo by Daniel Grant)
Annual Illinois wheat tour projects good per-acre yield likely saved much of the wheat crop’s yield potential. Tour participants believe the cool spring temThe Illinois wheat crop has good yield poten- peratures also helped suppress disease pressure. tial based on results last week of the Southern “Everybody saw some leaf disease and some Illinois Wheat Tour conducted by the Illinois scab, which is to be expected from the weather Wheat Association (IWA). we’ve had,” said Mark Miller of Mennel Milling Tour participants, who scouted more than 100 Co. in Mt. Olive, who led the south-central porfields in the southeast, south-central, and southtion of the tour. western portions of the state, “But I think the consensus is that projected an average yield of 62 scab, at this point, doesn’t appear to FarmWeekNow.com bushels per acre. be extremely bad,” he continued. Listen to Dan Grant’s interview USDA earlier this month pro- with tour participants about “But warm weather (which on Frijected an average state wheat t h e s t a t e ’s w h e a t c r o p a t day was in the forecast) could change yield of 61 bushels per acre com- FarmWeekNow.com. that in the next couple weeks.” pared to 56 bushels a year ago. Kevin Luthy, a wheat grower “It came out of winter looking from Marissa who has 1,100 acres very good,” said Dale Wehmeyer, wheat grower, of wheat, sprayed his crop at flagleaf and at headowner of Wehmeyer Seed Co. in Mascoutah, ing stages. He believes the crop could have exceland an IWA board member. “A lot of fungicide lent test weights but yield potential likely took a was applied. I suspect we’ll see the benefit from slight hit due to excessive moisture this spring. that because of all this (wet) weather.” “We started out excellent, now we probably The question now is whether the crop can are looking at average to above-average (yield maintain its yield potential until harvest. Tour potential),” Luthy said. participants found everything from leaf rust and Illinois farmers, regardless of yield, are septoria to head scab in some fields. expected to produce more wheat this year than “A lot of diseases have popped up in the last last year. USDA projected Illinois wheat growers week or so,” said Teresa Buccheit, crop scout this year will harvest 730,000 acres compared to with Opti-Crop, who led the southwest portion a record-low 295,000 a year ago. of the tour. “It would have been a lot worse if it Tour participants estimated wheat harvest this was four or five weeks ago.” season will begin around mid-June and kick into Fortunately, many farmers applied fungicide and high gear by the last two weeks of the month.
BY DANIEL GRANT FarmWeek
Planting progress ahead of schedule Most Illinois farmers in recent weeks made a miraculous comeback with their fieldwork after cold/wet weather delayed planting in April and early May. Planting progress as of the first of last week, for the first time this season, actually was ahead of the five-year average pace as 90 percent of corn was in the ground (compared to the average of 85 percent) and 47 percent of soybeans were planted (compared to the average of 43 percent). Farmers as recently as May 2 had planted just 10 percent of the corn crop, which was 36 points behind the average pace at that time. On May 9, just 2 percent of the soybean crop was planted, which at the time was 12 points behind the average pace. “Most folks in the central Corn Belt and to the west have been able to move,” said Bill Belzer, corn marketing manager for Pioneer. “But to the east, it’s a little heartbreaking. Indiana and Ohio are our biggest concerns.” Farmers in those two states as of the first of last week had managed to plant just 49 and 11 percent of their corn crop, respectively. In Illinois, planting continued last week until powerful storms — which spawned tornadoes in several counties — heavy rain, strong winds, and
hail, moved through Wednesday and Thursday. “There is a lot of ponding and swollen creeks in the area,” said Ryan Frieders, a FarmWeek Cropwatcher from DeKalb County. Elsewhere, Leroy Getz, a Cropwatcher in Carroll County, reported hail as large as walnuts. Tornado touchdowns caused damage to trees, powerlines, outbuildings, and some homes in McLean and Jefferson counties, among other locations. “Several machine sheds were destroyed and a few houses were de-roofed,” said Rick Corners, a Cropwatcher from Jefferson County. “Thankfully, I haven’t heard of any injuries.” The storms last week reportedly dumped as much as 4-plus inches of rain at some locations. The state from May 1 to May 26 received from 3 to 4 inches of rain in Northern Illinois, 4 to 5 inches in Central Illinois, 5 to 7.5 inches in parts of Western Illinois and much of Southern Illinois, and 7.5 to 10-plus inches in parts of deep Southern Illinois, according to the Illinois State Water Survey. “A lot of fields are still under water (in parts of Southern Illinois),” said Mark Miller of Mennel Milling Co. in Mt. Olive, who scouted several fields last week during the Southern Illinois Wheat Tour. — Daniel Grant
Page 3 Monday, May 30, 2011 FarmWeek
GOVERNMENT
State lawmakers advance budget ideas and a congressional map BY KAY SHIPMAN FarmWeek
The Illinois Senate Friday grappled with the state’s debt and the budget, with Democrats seeking to finish their work before Wednesday’s constitutional deadline that would require more Republican votes to pass a budget. Senate Democrats also unveiled a proposed congressional map with 18 districts, and the House passed a FarmWeekNow.com new state legView the proposed Illinois islative district congressional district maps map. b y g o i n g t o F a r m We e k Lawmakers Now.com were expected to be in session through the weekend. “Illinois has to take responsibility for the debt that has burdened businesses, schools, and not-for-profit service providers,” said Sen. John Sullivan (D-Rushville), who has sponsored bills that would authorize the state to issue bonds for $6.2 billion to pay overdue bills. “Under my proposal, we’re simply shifting existing debt away from vendors to lenders, where it belongs.” Of that money, $2.76 billion would go to pay what the state owes to schools, universities, community colleges, and local governments; $1.48 billion would be used for non-government service providers; $1.134 billion would go for health care providers; and $800 million would be used for corporate income tax refunds. A super-majority or a three-fifths legislative majority in both chambers is required for passage because the bills would increase the state’s bond
limit, according to Kevin Semlow, Illinois Farm Bureau director of state legislation. Under Sullivan’s proposal, the state would repay the bonds over seven years. As proposed, the bond payments would come from the state’s general revenue fund, Semlow explained. Supporters project the bond issuance would cost the state $800 million over the seven years, he said. On Friday, the Illinois House debated a bill that would establish a new permit fee for concentrated animal feeding operations (CAFOs) that are required to obtain a National Pollutant Discharge Elimination System (NPDES) permit. The bill was debated on the House floor and was held on postponed consideration, which would allow it to be called again for a vote before adjournment. The bill proposes to establish a fee of up to $1,200 for livestock operations required to have an NPDES permit. IFB, Illinois Pork Producers Association, Illinois Beef Association, and Illinois Milk Producers Association have opposed SB 1682, sponsored by Rep. Michael Tryon (R-Crystal Lake). With a 64-52 vote on Friday, House Democrats passed the redrawn map of state legislative districts. The map is expected to pass in the Democrat-controlled Senate. The unveiled congressional map put four incumbent Republican congressmen into districts with incumbent Democrats. In one pairing, freshman Rep. Adam Kinzinger, a Manteno Republican, would be pitted against incumbent Rep. Jesse Jackson Jr., a Chicago Democrat.
Illinois, Midwest plan for major earthquake State Geological Survey plays role Illinois emergency responders and officials recently prepared for a massive earthquake along the New Madrid fault as part of an eight-state disaster drill. The drill was to test state, county, and local officials’ preparedness. However, state emergency centers in half the states, including Illinois, were coping with real disasters of flooding and tornadoes and not able to fully participate. Despite the disaster drill’s timing, the need to prepare for earthquake damage is real, said Robert Bauer, a principal engineering geologist with the Illinois State Geological Survey (ISGS). Illinois is fortunate to have a wealth of information available. Much of the data for the regional disaster exercise was generated by the ISGS and the Mid-America
Earthquake Center, located at the University of Illinois. The disaster drill projected a magnitude 7.7 earthquake had occurred on a southern New Madrid fault farthest from Illinois. As part of the drill, that earthquake was followed shortly by a magnitude 6 earthquake farther north along the Wabash Valley fault. Illinois should prepare for earthquakes of various magnitudes, according to Bauer. “We haven’t seen one in the (magnitude of) 6s. We’re overdue,” Bauer said. “We have earthquakes throughout the state. We’re not just waiting for a big one.” He noted a 5.4-magnitude earthquake in the Wabash Valley seismic zone damaged some 240 structures in Illinois in 2008. After a magnitude 6 earthquake, Illinois could expect much structural damage, especially in Chicago where many one- to three-story brick buildings are not reinforced, Bauer explained. “There could be a lot of
injuries, depending on the time of day,” Bauer said. The recent disaster drill tested not only the officials’ ability to handle structural damage, but also how they coped with massive losses of power and communication. “In many states, (officials) started with amateur radio systems,” Bauer said. “This (planning) hierarchy works for multiple hazards.” Bauer described a 2009 incident in which Kentucky’s plan for a massive communication failure after an earthquake proved timely. Kentucky’s emergency director was in Washington, D.C., when a large ice storm wiped out all the communications systems in western Kentucky. “He said, ‘Take down (off the shelf) the earthquake plan,’” Bauer said. “That plan was used for another situation and it worked because they had already exercised it.” Information about earthquakes and how to be prepared is online at {www.fema.gov/hazard/earthquake/index.shtm}. — Kay Shipman
Quinn seeks federal disaster help for 14 southern counties Fourteen Southern Illinois counties await a presidential decision about federal disaster assistance after Gov. Pat Quinn made the request last week. Quinn’s request was related to historic flooding in Alexander, Franklin, Gallatin, Hardin, Jackson, Lawrence, Massac, Perry, Pope, Pulaski, Randolph, Saline, White, and Williamson counties (see accompanying map). Illinois’ two U.S. senators and the entire congressional delegation signed a letter to President Obama asking the disaster declaration be granted. Recently, damage assessment teams from the Illinois Emergency Management Agency (IEMA), the Federal Emergency Management Agency (FEMA), the U.S. Small Business Administration (SBA), and impacted communities documented the extent of damage to homes and businesses. Financial estimates of damage were not made. The storms and flooding destroyed 109 homes; caused major damage to 348 homes and 307 businesses; and damaged more than 500 additional homes and nearly 330 additional businesses in the 14-county area. IEMA officials did not know when a decision may be made on federal assistance, Patti Thompson, IEMA communication manager, told FarmWeek. “Sometimes it’s (a decision) happened really quickly and sometimes it has taken a month. We hope it’s quickly; we know there’s a need,” she said. If a federal designation is made, people in the approved counties would be eligible to apply for grants and low-interest SBA loans. Farmers in those counties would be eligible to apply for lowinterest loans for uninsured losses to their homes and personal property, including cars, said Kathy Cook, SBA public affairs specialist based in Atlanta, Ga. SBA is not authorized to make loans to farmers for losses to their farms, Cook added. However, farm losses in disaster areas may impact rural businesses, and those businesses, including small agricultural cooperatives, may be eligible for economic injury disaster loans, Cook explained. — Kay Shipman
Vehicles Continued from page 1 asking how states are handling the matter and for public input on several questions, such as compensation arrangements between landlords and farmers with crop-share leases. The third issue deals with implements of husbandry and the applicability of federal motor carrier safety regulations. IDOT has interpreted implements of husbandry to qualify as commercial motor vehicles under the federal regulations, subjecting them and their drivers to all the regulations that apply to trucks and trailers, Rund noted. Nielsen said: “I would urge anyone who went through the audit process at the beginning of the year, anyone with cropshare agreements, or farmers who make short trips to the local elevator to contact their county Farm Bureau manager as soon as possible and work with them on submitting comments for the record. Members who are personally affected by the current interpretation must be heard. “It will be very important for the federal agency to hear directly from farmers, farm organizations, and related industries about these important issues,” Nielsen said.
FarmWeek Page 4 Monday, May 30, 2011
THE LAND
AFBF: Floods devastate 3.6 million crop acres BY DANIEL GRANT FarmWeek
The American Farm Bureau Federation (AFBF) this month estimated floods in various regions of the country affected about 3.6 million acres of farmland. Arkansas was affected the most by flooding with an estimated 1 million acres under water, including 300,000 acres of rice and 120,000 acres of wheat, according to AFBF. Tennessee had about 650,000 acres affected by the flood, followed by Mississippi (600,000 acres) and Missouri (570,000 acres). “The effect of the flooding on farmers and ranchers is being felt deeply across the South,” said Bob Young, AFBF chief economist. “Rice probably will get affected more than any other crop.” AFBF estimated 40 percent of this year’s rice crop was affected by the floods. Farmers likely will plant fewer corn acres than expected
in the South and eastern Corn Belt. But some of those losses could be offset by increased corn plantings in parts of the western Corn Belt, Young said. He also expects more acres to be seeded to soybeans, which in southern areas can be planted as late as June and even early July and still produce profitable yields. “As time goes on, I think there will be more and more soybeans,” Young said. “We’re running out of time to plant corn.” Corn planting the first of last week was 79 percent complete nationwide compared to 92 percent at the same time last year. But only 11 percent of the corn crop was planted in Ohio and 49 percent in Indiana last week. In Illinois, AFBF estimated 500,000 acres of farmland was flooded. Some of those acres likely will be planted, but others appear to be lost for the year. “There are two issues going on with the flood,” said Jim
Angel, state climatologist with the Illinois State Water Survey. “There is field ponding, which fields could recover from fairly quickly if it stops raining for a week or two. And there are areas near rivers (where water backed up or levees were breached). “The fields next to rivers that usually are really good in dry years will be terrible this year.” Young said it is critical the government acts quickly to rebuild levees. “It would give some certainty there will be some protection out there so farmers can get back in there (in future years) and work the soil,” he said. Overall, the combination of flooding in the Ohio and Mississippi River Valleys along with extreme drought in the southern U.S. could take anywhere from 3 million to 5 million acres out of production this year, Young estimated. USDA heading into this season projected farmers would
increase plantings of the eight major row crops by 9.8 million acres to a total of nearly 255
million acres. The agency on June 30 will update its acreage projections.
FSA: Land use changes could affect compliance High commodity prices encouraged some farmers to put land idled land back into production this year. But Scherrie Giamanco, USDA Farm Service Agency (FSA) state director, cautioned farmers that changes to land use could threaten conservation compliance eligibility. Some changes that could impact conservation compliance and thus access to USDA benefits include the following: • Clearing timber areas to create or to expand existing crop areas. • Converting a pasture field into a crop field. • Cropping areas on a farm that have not been cropped in recent years. • Draining a wet spot in a field to make cropping easier. • Operating new land that may have been converted wetlands and cannot be planted. These are highly erodible and wetlands provision questions producers should consider each year to ensure they remain eligible for USDA benefits, Giamanco noted. Compliance with Highly Erodible Land and Wetland Conservation provisions are required for producers to be eligible for USDA programs. FSA is encouraging farmers to contact their local USDA Service Center prior to conducting land-clearing or drainage projects to make sure they retain their eligibility for USDA programs.
Scientists: Globally, ‘bioenergy markets can help’ BY MARTIN ROSS FarmWeek
Diversified bioenergy production and energy conservation — two priorities targeted in U.S. House-proposed ag program cuts — are key to helping producers worldwide ensure a more sustainable energy and environmental future. So said experts in a National Biodiesel Board seminar that focused last week on biofuels and land use and misconceptions about bioenergy’s environmental “footprint.” In terms of rural economic
and global ag development, soil management, and productive land use that can reduce potential for naturally destructive wildfires, “bioenergy markets can help,” said Keith Kline with the U.S. Department of Energy’s (DOE) Oak Ridge National Laboratory. Kline sees “common solutions for food and fuel,” including greater crop diversity and use of cover plantings and rotations including both commodity and energy crops. “Biofuel feedstocks or residue use should be considered from a cropping system’s
perspective and not just as a separate enterprise,” said University of California scientist and California Biomass Collaborative Director Stephen Kaffka. Kaffka stressed the need for policies that encourage sustainable energy production but noted “a lot of politics going on in Congress right now.” Amid continued, contentious debate over the federal deficit, the House Appropriations ag subcommittee last week voted to eliminate the Rural Energy for America Pro-
gram (REAP) in its fiscal 2012 spending bill. REAP helps farms and rural businesses reduce energy costs with renewable energy systems and improved efficiency. While touting bioenergy benefits, Kline said “conservation is our best investment” in reducing fossil energy costs. The House subcommittee also targeted the Biomass Crop Assistance Program (BCAP), which was created to encourage new energy crop production and regional projects that make use of biomass
Energy crops option for at-risk bottoms? A river engineer is uncertain that wholesale planting of flood-prone river bottoms to next-generation energy “crops” would benefit the next generation of Illinois producers. Upper Mississippi, Illinois, and Missouri Rivers Association Vice Chairman Mike Klingner notes the U.S. Environmental Protection Agency (EPA) is studying potential alternative crop/land uses within the Mississippi floodplain. EPA plans a workshop to seek Midwest input. Klingner, a Quincy engineer, questions proposals to divert the “very fertile farmland” of the bottoms to floodwater storage or other non-productive uses. He urged officials to heed “people who know what makes economic sense in ethanol production and other agricultural products.” Southern Illinois University agribusiness economist Silvia Secchi has urged exploration of “flood-tolerant bioenergy crops” as a row-crop alternative in areas prone to
flooding. Citing interest in “reconnecting of the river with its floodplain” (i.e., removal of levees), Bill Franz, EPA Region 5 watersheds and wetlands branch Upper Mississippi River team manager, suggests energy crops could offer “equivalent comparable income” for producers affected by removal of levees. By creating carbon dioxide storage “sinks,” planting grasses or similar “crops” could qualify growers for marketable carbon credits, Secchi added. But Klingner is uncertain whether planting “prairie grass” or other untested energy crops in the bottoms makes economic sense, given industry forecasts that indicate residues from existing crops instead will fuel the next major wave of biofuels production. In the Corn Belt, “leftover” hulls and bran will be the first “crop” used for cellulosic ethanol, Illinois Farm Bureau economist Mike Doherty maintains. Farmers are not likely to switch from
corn and soybeans to less profitable crops, and even progress in crop residue use will depend on the soil conditioning benefits of residue on the ground “vs. its selling price,” Doherty said. “There’s really not much there in the foreseeable future with any of your grasses,” Klingner told FarmWeek. “The next things that might have some energy value are certain types of rapid-growing trees in the southern part of the country. Some biomass economics may be coming down the pike there. “But the interesting thing is, if you reforest the floodplain, that actually increases water elevations more than corn and soybean crops would, because of the coefficient of friction or (water runoff) ‘C-factor.’ The (U.S. Army Corps of Engineers) has done studies on that: When you have areas that are opened up, they actually move more water than (land) that’s in a forest state.” — Martin Ross
resources. BCAP recently fell victim to deep cuts for the remainder of the current budget year. While some in Congress seek elimination of federal ethanol incentives, Kline noted farm program subsidies have gone “way, way down” with federally supported biofuels development. Given biofuels economic benefits vs. the roughly $500 billion annual U.S. price tag for imported oil, he asked ethanol critics, “What is the policy for?” Bioenergy development actually can reduce environmentally adverse land use changes, Kline concluded. He noted continued loss of farmland to urban-suburban development “at a relatively alarming rate,” depriving areas of greenhouse gas reduction benefits croplands can offer. Despite popular notions, Kline argued “there’s plenty of potential land that could be used” for energy production without cutting further into important forests or grasslands. Many land use change models focus on factors largely outside “typical private ownership and management,” he said. For example, most remaining natural forests are located on protected public lands, despite frequent consumer assumptions that most ownership is private,” Kline said.
Page 5 Monday, May 30, 2011 FarmWeek
BIOTECHNOLOGY
Gray: Compliance crucial but not ‘slipping’ BY MARTIN ROSS FarmWeek
A University of Illinois specialist does not see Bt corn refuge compliance “slipping” in Illinois. More than 90 percent of Illinois corn producers polled at recent U of I Extension Corn and Soybean Classic meetings indicated they planned to plant Bt corn this spring. But only about 80 percent indicated plans to comply with a U.S. Environmental Protection Agency (EPA) requirement that they plant 20 percent of
corn acreage with non-Bt seed — about the same as indicated in previous surveys. Five to 10 percent of respondents indicated they would not plant any refuge acres. Non-Bt plantings create a refuge that prevents development of insect resistance to GMO corn. Further, U of I entomologist and assistant ag dean Mike Gray asked growers “Did you establish refuge according to the recommended guidelines?” in 2010. Again, about 80 percent of respondents indicated they had not.
RMA expands endorsement to refuge-in-bag product USDA’s Risk Management Agency (RMA) has expanded options for premium discounts available to growers of selected biotech corn varieties. Monsanto’s Genuity SmartStax RIB Complete, a single-bag Bt corn refuge product, is the latest product approved for crop insurance premium reductions under the pilot Biotechnology Endorsement (BE) program, RMA announced last week. The program lowers crop premiums in 2011 for eligible corn growers who plant qualifying hybrids in Illinois, Colorado, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. To qualify, growers must plant at least 75 percent of total insured corn acreage within an insured unit, including replanted acres but excluding documented “high-risk” acreage. “This is another way producers can control their expenses a bit, if they’re planting these hybrids,” RMA Springfield Regional Director Brian Frieden told FarmWeek. Producers can apply for the endorsement with their agent when they report final corn acreages. Growers must submit signed-anddated BE certification statements, statements from seed dealer confirming purchase of qualifying hybrids, and copies of seed purchase/return invoices that document BE planting compliance. Estimated BE premium rate reductions range from 12 to 24 percent, depending on a producer’s average yield history as well as his elected plan and level of insurance coverage. All hybrids containing Genuity SmartStax RIB Complete technology will qualify for the endorsement. The U.S. Environmental Protection Agency approved the product for 2011 use in April. Additional selected “stacked” combination trait products from Monsanto, Syngenta, and Dow AgriSciences also qualify for premium discount through the BE program, which was introduced in 2008. Details on BE-eligible hybrids can be found at {www.rma.usda.gov/policies/bye.html}. For information on qualifying for the endorsement, producers should contact their insurer. — Martin Ross
Illinois Herb Association to host SummerFest June 11 People interested in cooking, landscaping, and healing with herbs are encouraged to attend the Illinois Herb Association’s 2011 SummerFest on Saturday, June 11, at Washington Park Botanical Garden, 1740 W. Fayette Ave. (northwest side of park), in Springfield. The event will feature talks by Pamela O’Neill, an Illinois certified nursery professional with Green View Companies; Lindsay Record, executive director of the Illinois Stewardship Alliance; and Molly Farmer, master herbalist/holistic health practitioner. There also will be a gardening panel with Dianne Noland and three Illinois Master Gardners. The event fee, which includes lunch, is $20 for Illinois Herb Association members and $30 for non-members. Those interested may download a registration form at {www.specialtygrowers.org/illinois-herb-association.html}. Checks should be made out to the Illinois Herb Association and sent to Charlene Blary, Illinois Herb Association, 1701 Towanda Ave., Bloomington, IL 61701. Registration fees are due June 6. Questions about the event or registration may be directed to Blary at 309-557-2107 or via e-mail at cblary@ilfb.org.
Release of the latest survey findings spurred a few headlines, though Gray wondered “why it generated quite the press it did.” He told FarmWeek this spring’s responses were in line with those of the last few years, though newer developments including mixed “refuge-in-abag” products and reduced refuge requirements for DowMonsanto’s compound-trait SmartStax corn have contributed to greater complexity and potential confusion in refuge planning and compliance. In the case of bagged refuge products such as Pioneer’s Optimum Acremax 1, “just planting is compliance,” Gray noted. Whether use of new products influenced grower responses, Gray sees no significant net drop in compliance from 2009, “when Optimum AcreMax wasn’t in the marketplace.” “I think there’s concern compliance has been slipping in recent years because some refuge requirements are changing as we go more and more into a refuge-in-a-bag approach, and also with these high commodity prices,” Gray said.
“Based on my surveys, the compliance seems to be around or slightly below the 80 percent mark ... That meshes very well with other similar surveys that have been taken.” EPA and the seed industry have stepped up refuge monitoring-enforcement efforts this year; Gray underlined the need to follow through with refuge plans even where weather has delayed or prevented plantings. Non-Bt plots planted on outside neighboring farms cannot be used as refuge, he said. Pioneer U.S. Corn Marketing Manager Bill Belzer argued, “by-and-large, farmers are great stewards of technology,” as evidenced by Bt product “durability” over the past 15 years. At the same time, he cited efforts to “simplify refuge.” Optimum AcreMax I includes 90 percent seed with Herculex XTRA herbicide tolerance and corn borer and rootworm resistance traits and 10 percent Herculex I seed that does not include rootworm resistance, thus providing rootworm refuge. AcreMax XTRA, a followup product currently under
EPA review, would offer both rootworm and borer refuge in a single bag. Belzer acknowledged “not everybody will be able to plant single-bag refuge products.” He thus stressed the importance of growers working with area seed and technology providers who can help develop “field-byfield” refuge plans. Each bag of AcreMax I this season includes a tag that illustrates various options for meeting refuge requirements. “Next year, we plan to put that (information) on all of our (Bt) products going forward — the (rootworm- and borer-resistant) triple-stacks and the double stacks,” Belzer told FarmWeek. “EPA has said it wants that to happen. “EPA’s provided additional conditions for registrants of all Bt technologies. Registrants have to conduct assessments for refuge for those traits. “We’ll be doing more of those assessments next year, using third parties like the Illinois Crop Improvement Association to do checks and compliance reviews with farmers.”
FarmWeek Page 6 Monday, May 30, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Lots of bad weather last week in Winnebago County. We started the week with heavy rain, high winds, hail, and two tornadoes touching down in the county on Sunday (May 22). We had about 2.5 inches of rain for the week, but the southwestern corner of the county had 4 inches. Seventy to 90 mph winds caused lots of downed trees, roofs damaged, and power outages. The hail in the western part of the county stripped many hay fields, and wheat fields will have to be replanted. Hopefully, the corn will grow out of it, as the growing point was still below ground. I know that other parts of the state and country are a lot worse off than we are, so we have to consider ourselves lucky. The corn looks pretty good considering everything and most of the beans are planted. Hope everyone had a good Memorial Day weekend. Pete Tekampe, Grayslake, Lake County: A cool, wet week in Lake County. We had 1.6 inches of rain on Sunday night (May 22) and 2 inches Wednesday and Thursday morning to bring the ponds back. Corn is mostly planted and most is up and growing. Beans are about 60 percent planted. Beans planted May 16 are just starting to poke out of the ground. With temperatures in the low 40s, it is hard for beans and corn to grow. Winter wheat and hay are looking great. Spring grains are just starting to sprout. Rain was forecast for three of the next five days — not good farming weather. Hope you had a safe holiday weekend. Leroy Getz, Savanna, Carroll County: A cool 40 degrees Friday morning. We received 2.2 inches of rain on Sunday (May 22) with some hail as large as walnuts. Then on Wednesday we had another 1.7 inches of rain. It helped the corn on the clay hills to emerge. Most herbicides are working well. Rowed soybeans are emerging, but some of the drilled no-till is slow to show up. A few fields of hay were chopped on Tuesday, but I haven’t seen any baling done yet. Our prayers go out to all those who suffered in the severe storms. Ryan Frieders, Waterman, DeKalb County: Last Saturday (May 21), we worked to finish planting the soybeans ahead of the forecasted rain showers. We received 2.5 inches of rain Sunday night (May 22). The fields started to dry out and some planting in the area resumed midweek. Soybean planting is 75 percent done. Earlier corn is at the V2 stage and growing. On Wednesday, we had another 3 inches of rain in 24 hours. There is a lot of ponding and swollen creeks in the area. Larry Hummel, Dixon, Lee County: Rain was the name of the game last week with 2.5 inches coming last weekend (May 21-22) followed by another 1.5 inches at the end of the week. Just to the south of us you can cut those numbers in half, but travel to the north and some nasty storms dropped almost double that with a small tornado thrown into the mix. Problem is, all the corn we have left to spray, of course, is north of town. Crops look fine. Germination was good and the crops are off to a good start. All we need now is a little heat. Highs in the lower 60s aren’t going to cut it. Joe Zumwalt, Warsaw, Hancock County: The heaviest rainfall Western Illinois has seen for some time fell over the past week dropping from 2.5 to 3.5 inches across the area. As dry as the ground was, there is very little water standing. In our neck of the woods, the rainfall was welcome. Corn ranges from emerging to almost V7. Soybean growth has been slow due to cool weather. With the cool temperatures, many have had to post spray corn due to escapes and heavy weed pressure. I have not heard of very much cutworm activity in the area, so maybe we escaped one insect for the year. My prayers go out to all of those impacted by tornadoes over the past few weeks. Few things look as devastating as the aftermath of the tornado in Joplin, Mo.
Ken Reinhardt, Seaton, Mercer County: Heavy rains fell mid-week. Total rain amounts ranged from 3 to 4-plus inches. More fell to the east of the county, bringing the Edwards River out of its banks. Most soybeans are emerging without problems. Several cornfields have been treated for cutworms. Ron Moore, Roseville, Warren County: We received 4 inches of rain last week. Now the fields look like last year here. Ponds of water on all of the low places and lots of erosion. Most of the soybeans have been planted now. We will have to see how long the water stays before we can decide whether to replant. Before the heavy rain, some post spraying of corn with Roundup was being done. The fields that did not get sprayed will have some weed problems when it dries out. Pasture conditions are very good now with the rain and finally some warm weather. Jacob Streitmatter, Princeville, Peoria County: Scattered showers covered the area all week and put an end to fieldwork Wednesday night, with rain ranging from 2 to 3 inches. Corn is growing, but so are the weeds and grass. When it dries up, sprayers will be busy. The majority of the corn has been planted, and a lot of soybeans were planted after the last rain. Tim Green, Wyoming, Stark County: Another pretty wet week. We were getting the ponds drained down a little bit and now they are back to full. We had about 3.5 inches of rain for the week. A lot of corn is starting to come through and looks decent. The earlier corn needs sprayed, but it’s too wet to do that right now. We need a few days of nice warm weather. Bean planting is 80 to 85 percent done. Emergence looks pretty good so far. Mark Kerber, Chatsworth, Livingston County: 1.5 to 3 inches of rain last week created soggy conditions. Soils are saturated. Most of the corn was finished up with a good start to soybean planting before the rains came. Warm weather is predicted, which will help dry soils and push these crops. Heat units will be needed this summer for this later-planted crop. Markets are sideways waiting for price direction from summer weather and old-crop demand. Ron Haase, Gilman, Iroquois County: I was able to start planting again on the afternoon of May 20. I continued planting until I was rained out again on May 22. We were able to spray 60 acres and plant 15 acres Tuesday evening before being rained out again. For the week, we received a range of 2 to 3 inches. I have been able to plant 99 percent of our acres. We have one 10-acre field to plant, plus about 4 acres in another field that were too wet to plant. There are very few farmers in the area who have finished planting. Some farmers to the south of here have not even started. Quite a few have planted soybeans, but not many have finished planting. Some of the cornfields planted between May 10 and 13 were rotary hoed to help with slow emergence. About 70 percent of our corn has emerged, which would be all the corn planted on or before May 13. Corn that has emerged is anywhere from the VE growth stage up to V4. Most would fall between VE to V2. There are a few soybean fields in the VE to V1 growth stage. Local closing bids for May 26: nearby corn, $7.40; new-crop corn, $6.42; nearby soybeans, $13.83; new-crop soybeans, $13.41. Brian Schaumburg, Chenoa, McLean County: Another wet and stormy week hampered seeding efforts, but in the few dry moments, a lot of beans went into the ground. Soybean planting progress is at 65 to 70 percent complete with 40 percent emerged. With dry weather over the Memorial Day weekend and a favorable 8- to 14-day outlook, both corn and bean planting should wrap up. Some NH3 applications took place. Wheat is heading out and a few are anxious to cut hay. Growing degree units stand at 409. While much improved, that is still behind average. Corn, $7.30; $6.34 harvest; soybeans, $13.70; $13.27 harvest; wheat, $7.39.
Steve
Ayers,
Champaign, Champaign County: Wednesday was our active weather day with a series of thunderstorm, tornado, and flash flood warnings. Miraculously, minimal damage was reported throughout the area even with hail, tornadoes, straight-line winds, and torrential rain. Between 1.5 and 4.5 inches of rain fell in the area, with my gauge at 2.6 inches. Our eastern crop reporting district has 87 percent of the corn planted with 38 percent emerged and 27 percent of the soybeans planted with 2 percent emerged. If we get a few 90-degree days, we plan on drilling beans this week. Bug of the week is the black cutworm, so we will be scouting for cut plants. Weed of the week is the bright yellow cressleaf groundsel or butterweed that is becoming quite a problem in reduced tillage situations. Count your blessings as we watch the Joplin devastation. Let’s be careful out there!
Wilfred Dittmer, Quincy, Adams County: Mother Nature can be so wonderful and in the next instance so destructive. What a wild week weatherwise. Our thoughts and prayers are certainly with those who were affected by the storms last week. All we had was rain, about 2 inches since last report, which brings our total to 4.5 inches for the month of May, and we had some wind. Most corn looks good, even if it is standing in water, as some is. There are some soybeans up and many more to be planted, but virtually all machinery was parked for the week. Some hay was put down between the showers, and some were lucky to get some grass cut between the rains. We do still have those pesky buffalo gnats, but not as bad as they were. Have a safe week. Carrie Winkelmann, Tallula, Menard County: The 2 inches of rain we received this past week kept everyone out of the field, although, I think most were wrapping up planting corn and beans in our area. We finished two weeks ago and then had a very nice week to spray. This past week, we didn’t set foot in a field, so we spent the week hauling beans. Most of the beans in the area are emerging, and corn is at various stages of growth. Both crops are looking good. Tom Ritter, Blue Mound, Macon County: Showers during the last week were pretty scattered, but most of them went either north or south of southern Macon County, allowing farmers to make some major progress in getting crops planted. Corn planting is more than 95 percent complete. Soybeans probably are 80 percent complete. A lot of the later corn is just now emerging and early corn is up and growing well with good color. Late last week we had more than 3 inches of rain, which filled the ponds again. More was forecast through Memorial Day weekend. Overall, though, farmers made great progress and are pleased with where they are at. At least we were not in the field and were able to enjoy a Memorial Day weekend for a change. Todd Easton, Charleston, Coles County: We almost got the third week of planting window that I asked for in last week’s report. On- and off-rain showers set in Wednesday, followed by more severe storms that evening. The rain gauges that could still be found on their posts showed just short of 3 inches the next morning. Many producers completed their planting, while many others got close to being done. Alongside the planters, sprayers got a good start on spring applications, and sidedress applicators got a slight start on the acres that everyone has indicated will receive late-season N this year. Crops are looking good on the high ground with the early corn well into the V3 stage and the rest in V1. There has been some damage in select cornfields from black cutworms, and local agronomists are advising that fields be scouted for the problem. Soybean fields are in various stages ranging from barely emerging to approaching V2. The handful of area wheat fields are heading out and, for the most part, standing pretty well so far. Finally, I hope everyone had a good holiday weekend and took time to thank all those who have sacrificed for our freedoms.
Page 7 Monday, May 30, 2011 FarmWeek
CROPWATCHERS David Schaal, St. Peter, Fayette County: This has been the toughest year for me to report the weather for the whole county. Rains have varied so much. Since last report, I received a little more than 2 inches of rain. Some farmers in the area had more and some less. As far as crop progress, I finished with corn late on Friday (May 20), and started planting beans May 22. Most producers are done or real close to completing corn planting. Some have a few beans planted. The northern part of the county is further along with planting than we are in this area. Wheat producers are experiencing armyworm pressure. Along with that, cutworms are working pretty hard on the corn that has emerged. The corn seems to be emerging in six to eight days. We are sitting on saturated soils again, with lots yet to be done. We are hoping for warm, dry weather to finish soybean planting. Ted Kuebrich, Jerseyville, Jersey County: It was a bad week for stormy weather. Monday night (May 23) we had a lot of lightning and high winds. Lightning struck a home down the road from where we live, and it burned to the ground. The high winds blew over trees, a grain bin, and a couple of pole barns. Then on Wednesday afternoon, we had tornado warnings out for our county. No tornado was seen, but we had high winds and hard rain measuring 2 inches. There is a lot of water standing in planted corn and bean fields. With all the bad weather, there has been very little fieldwork done. The Illinois River is just 2.5 feet over flood stage. Prices at Jersey County Grain, Hardin: cash corn, $7.33; fall corn, $6.42; cash beans, $13.85; fall beans, $13.26; June/July wheat, $8.10. Dan Meinhart, Montrose, Jasper County: Rainfall this past week varied from 1 to 3 inches with high winds on Monday afternoon (May 23) and Wednesday evening destroying several buildings, severely damaging many others, and downing power lines and trees. Luckily no one was injured. Very little or no planting has occurred this spring in the wet areas. In the drier areas, corn planting is almost complete and progress has been made planting beans. Whenever rain comes it seems the same area gets hit the hardest. Drier and warmer weather is predicted for this week. Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Dave Hankammer, Millstadt, St. Clair County: Rainfall May 21 and 22 varied throughout the county, with amounts ranging from a few tenths to as much as 1 inch in the southern part of the county. Some farmers returned to the fields on Saturday (May 21) to continue corn planting and plant a few soybeans. We received rain showers on Sunday evening (May 22) proving the old adage about rain on Easter Sunday holds true. Some farmers continued fieldwork on Monday (May 23) wherever possible. On Tuesday afternoon heavy rainfall moved into the region, setting the weather pattern for the remainder of the week. Early-planted corn looks good, despite some spotty, thin population stands in problem areas of the fields. Corn and soybeans planted in the last week are emerging quickly and can be seen down the row. The wheat crop is holding up well, although, I’ve observed some lodging due to the storms moving through the area. Strawberry harvest is under way. Local grain bids on Thursday evening: corn, $7.32; soybeans, $13.83; wheat, $7.89. Have a safe week. Dean Shields, Murphysboro, Jackson County: Another week of wet weather here in Jackson County. Thursday night, we had a rainstorm that dumped anywhere from 0.8 of an inch to 2.8 inches of rain. Not much progress this past week getting crops planted. The flooding situation has gotten better for some people who live along the Muddy River. It has been receding, and a lot of that land has been opened back up so some work could be done. The Mississippi continues to stay high, which keeps the locks closed, and our internal water is still as high as it ever was, so we are still fighting that. The wheat crop looks pretty decent, but we are all worried about how much disease is in it because of all the wet weather. Quite a bit of it is sitting in water right now. We would like it to warm up with some sunshine and no rain so we can get back to farming in Jackson County. Everyone take care. Kevin Raber, Browns, Wabash County: Not much field activity this past week, but we have had a lot of wind and rain. I had wind damage to a shed and several pieces of machinery. Many fields have water standing on them. The wheat crop looks decent, but it hasn’t had many days of dry soil over the last month.
Rick Corners, Centralia, Jefferson County: What a mess. We had an inch of rain on Monday (May 23) and then Wednesday evening we had another 1.5 inches with tornadoes. Several machine sheds were destroyed locally and a few houses were de-roofed. Thankfully, I haven’t heard of any injuries. Rains came so fast that fields were lakes, and the creeks were overflowing again. Don’t know what will become of the little bit of corn that was planted last weekend. Probably only about a third of the corn has been planted locally, and with the flooded fields and the forecast, it doesn’t look like any more will be planted soon. Randy Anderson, Galatia, Saline County: I feel like we are in a never-ending marathon of the movie Ground Hog Day this planting season. Some good progress is made, then guess what — it rains again. Rainfall varied from 1 inch to 3.5 inches with some wind and hail damage. Many reports of funnel clouds and some twisters. Some producers are close to being done with corn. Some like me, are saying that by the time it gets dry enough again to plant, it will be almost too late. The corn planting cutoff date for us is June 5, and what is left to plant are the wettest fields. My corn varies from V6 to trying to emerge. I have not planted beans yet, but we are ready to go. Wheat is starting to turn a little. Keep all your friends and neighbors who have had trouble with the spring weather in your prayers. Ken Taake, Ullin, Pulaski County: It was a rainy week here in deep Southern Illinois. We had rain Sunday, Monday (May 22 and 23), and Wednesday evening with some strong winds on Wednesday. We received about 1.5 inches of rain total, so needless to say, there hasn’t been any fieldwork done since the rains came. I’ve heard of a few farmers in the area starting to return corn seed for soybeans. I think we will hold out a little longer and hope we can still get some more corn planted. We are currently at about 75 percent of our intended corn acres planted, but have planted only about 90 acres of soybeans so far. Conditions just haven’t been right to get anything done. Every year is just a little different, and this year has proven to be very different. Please remember to be careful as we continue in this busy season.
Herbicide metabolism: What is it and why does it matter? BY BARRY NASH
Successful corn growth requires sunny days with warm day and nighttime temperatures. Several days of 85-degree highs followed by 70degree nights are ideal. Unfortunately, most of Illinois has Barry Nash not consistently experienced these conditions for more than three days in a row. Rather, some areas reached the 90-degree mark recently followed shortly by nighttime temperatures in the upper 30s. As a result, the corn plant is confused. Thus, growing conditions right now are ideal for corn injury from both pre-emergence and postemergence herbicide applications. Most corn herbicides
require metabolism, or deactivation, of the herbicides for successful crop safety (exceptions include glyphosate on Roundup Ready corn and glufosinate on Liberty Link corn). Metabolism is a plant’s ability to deactivate “foreign substances” within the plant itself. This includes viruses, pathogens, and pesticides. Metabolism is accomplished in plants via a complex chemical process involving mixed function oxidases (MFOs). In a nutshell, MFOs are similar to our own white blood cells — which fight off foreign sub-
stances in our body. This is why cancer patients have their white blood cell count monitored, as chemotherapy reduces white blood cells, resulting in the body being more susceptible to such things as pathogens and viruses. The same is true with plants. A plant that is under stress (too cold, too wet, too dry) will have a reduction in MFO production. This reduction in MFO production can result in an overload of herbicide molecules to the site of action, ultimately resulting in crop injury or death. Currently, many of
Illinois’s corn acres are undergoing a tremendous amount of stress, which suggests that crop injury may occur. Listed below are a few recommendations to reduce the potential for corn herbicide injury: • If a corn residual herbicide has already been applied, be patient. A few days of consistently warmer nighttime temperatures will increase the plant’s ability to metabolize the herbicide. • If residual herbicides have not yet been applied, consider delaying the application a few days. Once the
corn plant returns to its green, lush color, applications should be safer to the corn plant. • If post-emergence herbicides are needed now, consider waiting a few days (see above). At the very least, avoid aggressive adjuvants in the application. For more information on herbicide metabolism or the best time to apply herbicides to avoid crop injury, contact your local FS crop specialist. Barry Nash is GROWMARK’s weed science technical manager. His e-mail address is bnash@growmark.com.
FarmWeek Page 8 Monday, May 30, 2011
TECHNOLOGY
U of I taking collaborative step with new laboratory BY KAY SHIPMAN FarmWeek
A newly refurbished laboratory offers University of Illinois researchers and their industry partners the opportunity to test bioenergy discoveries on a pre-pilot scale. The Center for Advanced BioEnergy Research (CABER) officially will open its bioprocessing lab on the Urbana campus with a June 6 ceremony. “The idea is if you can scale it (technology) up, the better the chance of getting it commercialized and the better the chance of industry coming to take a look at the process,” Hans Blaschek, CABER director and food science and human nutrition professor, told FarmWeek. The lab houses equipment that previously was scattered around campus or had been put into storage due to a lack of lab space or access to sufficient power, said Natalie Boescker, coordinator of CABER communications and external relations.
Esha Khullar, left, a doctoral agricultural and biological engineering student at the University of Illinois, explains some aspects of a new mobile pilot plant fermenter to Ming-Hsu Chen, a fellow doctoral student in agricultural and biological engineering. (Photo by Kay Shipman)
For the first time, U of I researchers will have access to wet- and dry-milling equipment located in the same room and to a new 100-liter fermenter. In addition, CABER researchers will partner with the Illinois Sustainable Technology Center that is part of the Prairie Research Institute at the U of I. They will work on analytic technology capability with an eye toward develop-
worked with individual researchers before, but the U of I is working on more collaborative and multiple-discipline research,” Boescker noted. The Illinois Corn Marketing Board contributed funding for corn-related research that will be conducted in the lab, she added. The bioprocessing lab is a first step toward a longplanned Integrated Bioprocessing Research Laboratory (IBRL) that has stalled because of state funding problems. The IBRL is designed to test benchscale discoveries on a pilotscale level.
“We decided we had to do something to get the momentum going,” Blaschek said. The existing lab space became available at the same time CABER was looking for space to conduct collaborative research. In addition to scaling up technology, the bioprocessing lab will allow CABER to scale up its collaborative efforts. “It does allow us the opportunity to go through a smallscale version (of the IBRL),” Blaschek said. “We will have all the researchers together and the equipment together. This is a nice way to ease into it.”
ing higher-value products, Boescker explained. CABER also is offering companies an opportunity to be industry affiliate members. Affiliates will have access to the bioprocessing lab pilot plant and its researcher expertise. Affiliate companies may work with university equipment, their own equipment, or a combination of both, Boescker explained. “Many companies have
Bureau County Farm Bureau ag literacy coordinator Sara Hildebrand describes an agriculture-related lesson with pizza ingredients as fellow ag literacy coordinators listen. (Photo by Kay Shipman)
Back to school: Ag literacy coordinators gain new ideas Illinois Agriculture in the Classroom (IAITC) is recasting activities and ideas in an effort to reach the youngest students from pre-school through first grade, ag literacy coordinators learned last week. “One of the things we’re hearing is it’s becoming harder to get (ag-related lessons) into schools,” said Kevin Daugherty, Illinois Farm Bureau education director. Daugherty spoke to 94 ag literacy coordinators, county Farm Bureau managers, and others who attended a spring coordinator meeting at Heartland Community College, Normal. Recently IAITC developed ag-based ideas to teach basic concepts, such as shapes, colors, and personal responsibility, and then provided workshops for kindergarten and first grade teachers. The teachers felt comfortable using ag-related materials to teach those subjects because they teach those topics every year, said Kelly Murphy, IFB education specialist. Murphy and Carrie Verner, also an IFB education specialist, described nine monthly lessons, each focusing on a different topic. The information is avail-
able in a booklet entitled “Marvelous Mondays” that includes related books, activities, and resources. “Ag doesn’t have to be a ‘farm unit.’ Ag can be tied into what they (teachers) are doing,” Daugherty added. Daugherty reminded coordinators the nomination deadline for the IAITC teacher of the year and volunteer of the year awards is Sept. 1. The teacher nominations are due earlier in the year to provide the winner an opportunity to be honored during the IFB annual meeting in December. IAITC also is releasing new materials. These include a new nutrition ag magazine and a new urban ag magazine. Ag magazines also are being developed on other topics, such as animal care, or reprinted for several commodity topics. IFB staff members weren’t the only ones sharing lessons and teaching ideas at the Heartland event. Many coordinators gave brief presentations on lessons, crafts, or resources they have used or developed. They also shared instructions and/or patterns with the group. — Kay Shipman
Page 9 Monday, May 30, 2011 FarmWeek
FROM THE COUNTIES
B
UREAU — Bureau and Lee County Farm Bureaus will sponsor their annual golf outing at 9 a.m. Friday, July 8, at Hunter’s Ridge Golf Course, Princeton. Proceeds will benefit their Agriculture in the Classroom programs. Call the Farm Bureau office at 815875-6468 for a registration form or more information. ORD-IROQUOIS — An “On the Road” seminar will be at 7 p.m. Wednesday, June 15, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, and representatives from the Illinois Department of Transportation will be the speakers. Call the Farm Bureau office for more information. ULTON — The Young Farmer Committee will sponsor a livestock show clinic from 9 to 11 a.m. Saturday at the Farm Bureau office. Showmanship techniques on showing swine, cattle, sheep, and poultry will be taught. Call the Farm Bureau office at
F
F
547-3011 for more information. • The Women’s Committee and Illinois State Police will sponsor a defensive driving class from 9 a.m. to 1 p.m. Monday and Tuesday, June 1314, at the Farm Bureau office. Attendance is required both days for certification. Cost is $15 for Farm Bureau members and $20 for non-members. Call the Farm Bureau office at 547-3011 by Thursday, June 9, for reservations or more information. • The Young Farmer Committee will sponsor a trap shoot at 9 a.m. Saturday, June 25, at Jacob’s Field, St. David. Cost for the day is $20, which includes 50 targets and lunch. There will be two categories: one for those 39 and under and the other for those 40 and older. Winner of each category will receive a case of shotgun shells donated by Riverland FS Inc. and Fulton FS Inc. Call the Farm Bureau office at 547-3011 for more information. ASALLE — Tickets are available for the Heritage Tractor Adventure
L
Horticulture field day set for June 9 The Illinois Specialty Growers Association is teaming up with the Illinois State Horticultural Society (ISHS), Southern Illinois University, and the University of Illinois to sponsor Horticulture Field Day on Thursday, June 9, at the Braeutigam Orchard in Belleville. The field day will feature a production tour of the orchard, decorating and displays, a marketing tour, industry suppliers, and U of I horticulture specialists. There will be organized children’s activities. Additional activities include a tour of Eckert’s Market. Braeutigam Orchard is a diversified farm operation that has raised fruit for consumers since the 1940s. The orchard and farm market will be open from the time peaches ripen in July into October when the apple and
pumpkin crops are sold. Pre-registration fee is $25 per person, or $30 at the door. Children under 12 are free. Preregistrations will be accepted by phone until June 7 by calling Don Naylor, Illinois State Horticultural Society executive secretary at 309-530-7678 or 309828-8929, or by e-mail at ilsthortsoc@yahoo.com. Advance reservations also may be made by sending a check to ISHS, 15962 Old Orchard Rd., Bloomington, IL 61705. On-site registration begins at 8 a.m. on June 9. Additional event information may be obtained by contacting Naylor. For more information about scheduled presentations, contact Mohammad Babadoost at 217-333-1523 or by e-mail at babadoos@uiuc.edu.
lunch from 11 a.m. to 1 p.m. Monday, June 13, at the LaSalle County Fairgrounds. Call the Farm Bureau office at 815-4330371 for more information. EE — Bureau and Lee County Farm Bureaus will sponsor their annual golf outing at 9 a.m. Friday, July 8, at Hunter’s Ridge Golf Course, Princeton. Proceeds will benefit their Agriculture in the Classroom programs. Cost is $35 for Farm Bureau members and $55 for non-members. Registration includes golf, cart, and lunch. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net for more information. • Lee and Whiteside County Farm Bureaus will sponsor a bus trip Wednesday, July 20, to see the Chicago Cubs vs. the Philadelphia Phillies game at Wrigley Field, Chicago. The game is at 1:20 p.m. Cost is $60 for members and $65 for nonmembers. Registration and money are due to the Farm Bureau office by Wednesday, June 15. Registration will be on a first-come, first-served basis. Call the Farm Bureau office at 815-857-3531 for more information. • Become a fan of the Lee
L
County Farm Bureau on Facebook {www.facebook. com/LeeCountyFarm Bureau} to keep up to date on the latest news and events. CDONOUGH — A “Managing Crop Risks in Volatile Times” seminar will be at 7 p.m. Monday, June 13, at the Spoon River Outreach Center. Steve Johnson, Iowa State University Extension farm and ag business management specialist, will be the speaker. Call the Farm Bureau office at 309-837-3350 for reservations or more information. EORIA — Tickets are available for the Ag Night Peoria Chiefs vs. Wisconsin Timber Rattlers baseball game Wednesday, June 15. Cost is $6. Soda, hot dogs, and ice cream are $1 each. Call the Farm Bureau office for more information. • The summer Market Outlook meeting will be at 6:30 p.m. Tuesday, June 21, at Farm Bureau Park. Raber’s will serve a pork chop meal. Cost is $5. Luke Hickey and Brian Basting, Advanced Trading, will be the speakers. Call the Farm Bureau office for more information.
M
P
• The annual golf scramble will be at 7 a.m. Saturday, July 16, at Laurel Greens, Peoria. Cost is $25, which includes golf and cart. Reservation forms are available at the Farm Bureau office or on the website {www.peoriacountyfarmbureau.org}. TARK — Stark and Henry County Farm Bureaus will sponsor their annual golf outing Friday, June 10, at Baker Park, Kewanee. Proceeds will benefit their Agriculture in the Classroom programs. Cost is $35 for members and $55 for non-members, which includes golf, cart, and lunch ticket. Call the Farm Bureau office at 286-7481 by Monday, June 6, for reservations or more information.
S
“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 10 Monday, May 30, 2011
PROFITABILITY
Manufacturing, like farming, more efficient than in past BY MIKE WOODS
In fact, U.S. output in 2009 surpassed the sum total of output from Japan, Germany, France, Italy, Korea, and the U.K., and still accounted for 20 percent of the world’s manufacturing output, down only slightly from its 1990 share of 21 percent. How could this be? Didn’t we all know dozens more people with manufacturing jobs 30-40 years ago? Yes, and we also knew more people in farming 30-40 years ago. Just as farmers have become more efficient, so have manufacturers. Using 2010 dollars, the 1970 U.S. manufacturing worker produced roughly $58,000 of output. In the same
As people debate solutions to address our nation’s serious economic shortcomings, invariably someone complains about the seeming demise of U.S. manufacturing — but the facts tell a different story. According to the United Nations, American manufacturing still surpasses any other nation in the world. In 2005 dollars, U.S. manufacturing output in 2009 was valued at $2.15 trillion, 146 percent of the output from China at $1.48 trillion. On a per capita basis, U.S. manufacturing output is a multiple of seven times that of China.
2010 dollars, today that number is $180,000 per worker, an increase in productivity by a factor of more than three. You know that improvements in the efficiencies of the American farmer have been even more impressive. Because of the tremendous gains in Mike Woods efficiencies, the percent of the workforce required to produce goods and food has decreased significantly. The percent of the workforce in manufacturing in 1970
was about 26 percent; today it’s about 10 percent. In farming, the respective ratios are 4.5 percent and 1.6 percent. The reductions in both sectors are similar, slightly more than 60 percent over that 40-year period. So if we measure manufacturing success by the percentage of people in the workforce still employed in manufacturing, the claim that U.S. manufacturing is on the decline would be true. The fact is, however, that in the U.S. and worldwide, the need for manufacturing employment has been decreasing for decades. Manufacturing as a share of U.S. gross domestic product
(GDP) in 1970 was 24 percent; in the entire world the average was 26.5 percent. U.S. manufacturing today represents a much lower 12.9 percent of its GDP, which might seem to be another indicator of a decline in manufacturing. However, the world’s manufacturing has also declined significantly to 16.6 percent of GDP. All the “stuff ” we need and want is being produced very efficiently, and those efficiencies will only continue to grow. Mike Woods is GROWMARK’s director of strategic analysis and research. His e-mail address is mwoods@growmark.com.
Climatologist: Severe weather pattern may be easing BY DANIEL GRANT FarmWeek
The pattern of severe weather could begin to subside in Illinois in the weeks ahead. “The last couple weeks we haven’t had quite as much heavy rainfall,” said Jim Angel, state climatologist with the Illinois State Water Survey. “We could be warmer and drier as we get past Memorial Day (based on the Climate Prediction Center’s short-term outlook).” The temperature isn’t expected to get too hot, though. Weather Services International (WSI) last week projected the upcoming summer period (June
Jim Angel
through August) will average cooler-than-normal in the north-central states, Great Lakes, and the Ohio and Mississippi River
valleys. Illinois so far this year has been hit with a major blizzard (Feb. 2), record rainfall for the month of April, major flooding along rivers and streams, belowaverage temperatures much of this spring (including frost in recent weeks), and prior to last
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 $15.00-$44.64 $34.22 $52.00-$65.60 $59.16 n/a n/a This Week Last Week 20,919 27,953 *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 $88.58 $91.72 $65.55 $67.87
Change - 3.14 - 2.32
USDA five-state area slaughter cattle price Steers Heifers
This week 106.66 105.17
(Thursday’s price) Prv. week Change 107.18 -0.52 107.60 -2.43
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change 128.02 -3.06
This week 124.96
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 125-160 lbs. for 165.57-210 $/cwt.(wtd. ave. 191.17); dressed, no sales reported.
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 5-19-11 7.8 30.2 35.8 5-12-11 5.4 30.2 37.7 Last year 4.6 21.1 45.3 Season total 1379.3 1226.8 1264.5 Previous season total 1333.7 836.8 1296.2 USDA projected total 1580 1275 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
week 26 reports of tornadoes (Illinois averages about 29 confirmed tornadoes per year). “It (the severe weather pattern) really started this winter,” Angel said. A lingering La Nina (coolerthan-normal water temperatures in the Pacific Ocean) likely played a role in the heavy rains and flooding in the Ohio River Valley. Some research indicates La Nina also can lead to increased tornado activity, but Angel was less inclined to pin all the blame for the severe weather season on La Nina. The jet stream in April reportedly was one of the strongest on record. “Fortunately, we haven’t had the kind of (tornadic) activity that’s occurred elsewhere,”
Angel said days after a powerful twister devastated Joplin, Mo. “By and large we’ve escaped the types of catastrophes that occurred in the South.” Illinois as of last week had recorded no tornado-related fatalities for the year. But so far this year more than 500 people nationwide have died in tornadoes, including 132 as of Friday in Joplin and 314 people in six southern states — about two-thirds resided in Alabama — when a pack of twisters hit on April 27. “We’ve had about 10 times as many deaths (from tornadoes) so far this year compared to (45) last year,” Angel said. The U.S. the first 4.5 months this year was hit with 1,314 tornadoes compared to 1,282 all of last year.
“The prime season is April, May, and June. About threefourths of all tornadoes occur during those three months,” Angel said. “So we’re not totally out of the woods, yet.” Elsewhere, extreme weather could continue in the months ahead. WSI predicted abovenormal summer temperatures in the South, which could intensify drought conditions in many southern states. Meanwhile, the National Oceanic and Atmospheric Administration (NOAA) this month projected an above-normal hurricane season in the Atlantic Basin. NOAA predicted 12 to 18 named storms will occur during the six-month hurricane season, which begins June 1, compared to the average of 11 named storms per season.
White House backs biofuels; infrastructure needed BY MARTIN ROSS FarmWeek
Biofuels producers were pumped last week as the White House endorsed — and major carrier UPS pledged to deliver — new renewable fuels markets. But further measures are crucial to ensure biofuels fleets can stay up and cleanly running, according to Illinois Corn Growers Association (ICGA) President Jim Reed. The National Biodiesel Board (NBB) applauded a White House directive ordering the federal government to move toward more exclusive use of alternative fuel vehicles. The government today uses 66 million-plus gallons of diesel fuel and 6.5 million gallons of biodiesel per year. Biodiesel, which can be used without engine modifications, is “perfectly suited for this program,” NBB Chairman Gary Haer said. “It’s something the federal government could do immediately, without leaving the taxpayer a big bill for new equipment,” said Haer, whose company, Renewable Energy Group, runs a Danville biodiesel plant. Meanwhile, global delivery giant UPS (United Parcel Service) has installed a 30,000-gallon biodiesel fuel tank and fueling station at its key Worldport hub in Louisville, Ky. The hub processes 416,000 packages an hour, and the biodiesel station will fuel 200 vehicles and diesel equipment with blends ranging from B5 (5 per-
cent biodiesel) to B20. U.S. Rep. John Shimkus, a Collinsville Republican, is spearheading a bipartisan “open fuels” standard that would require 95 percent of new cars be warranted to use biodiesel, ethanol, electricity, or other non-petroleum sources by 2017. However, not every company or retailer has the resources to develop UPS-style biofuels infrastructure. Ethanol interests seek to shift an imperiled federal ethanol blenders tax credit gradually toward incentives for flexible fuel-friendly “blender pumps” and related improvements. Jeff Broin, CEO of leading ethanol producer Poet, stressed the need to “repurpose” existing pumps as the U.S. strives to reduce oil dependency. Sen. Chuck Grassley (R-Iowa) supports reforms advocated by Poet and other ethanol manufacturers. Former Minnesota governor and presidential candidate Tim Pawlenty argued last week “it wouldn’t be fair to pull the rug out from under (the ethanol industry)” by abruptly eliminating the 45-cent-per-gallon tax credit. An Iowa State University Center for Agricultural and Rural Development study indicates increased ethanol production, powered by blending incentives, reduced average per-gallon wholesale U.S. gas prices by 89 cents in 2010. ICGA’s Reed warned credit elimination would amount to “raising taxes on the consumer.” “We need a long-term solution,” Reed told FarmWeek.
FarmWeek Page 11 Monday, May 30, 2011
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Acreage debate heats up The acreage debate gained steam last week with the ongoing slow planting in Indiana, Ohio, and parts of Northern Plains. Weather just doesn’t seem to give these areas a consistent break. Along with planting issues on either end of the Corn Belt, there’s a lot of talk surfacing about the amount of acreage that will be lost in the southern Corn Belt and Midsouth because of flooding. Last, the delay in planting and flooding is causing many analysts to debate merits of the prevented planting provision in crop insurance products and the impact it may have on the acreage seeded this year. Last week, a wire service survey of analysts indicated they expect corn plantings to drop nearly 2 million acres from the March USDA forecast. Soybean plantings were expected to rise only 200,000, in part due to acreage abandonment, and in part due to Mississippi River flooding. The planting delays are most severe in the eastern Corn Belt, with 6.3 million acres of corn still to be planted in Indiana and Ohio based on the March USDA projections. That’s 4 million more than normal for the end of May. Across the whole Corn Belt, acres to be planted are 8 million more than normal for this late in the season. North Dakota, Minnesota, and Wisconsin are the other states with significant areas to be planted. And in some of those areas, the calendar already has passed the insurance cutoff date for corn to collect full benefit. Hard red spring wheat plant-
ings lag significantly as well, especially in North Dakota and Montana. A total of 6.1 million acres of the intended plantings are yet to be planted, 4.8 million more than would normally be left at this time. That’s out of a total intended to be planted in all states of 14.4 million acres. The latest weather forecasts, especially for the eastern Corn Belt and Midsouth, call for warm, dry weather into the middle part of June. Even though many of the corn acres to be planted will not be planted until after the key insurance date, benefit losses won’t be enough to discourage planting if weather allows. If planting conditions generally hold up, we expect any acreage still left as mid-June approaches to be mostly shifted to soybeans as the insurance benefit for that crop is still greater than taking the prevented planting payment for corn. Not until the lateJune soybean insurance date does the situation favor abandoning acres altogether. The American Farm Bureau Federation estimated 3.6 million acres of farmland in the Mississippi River valley has been affected by spring flooding. But a company that uses satellite imagery to make crop projections estimates that land lost to flooding ultimately may be less than half a million acres. The spring wheat situation is a little different as the weather forecasts for the wheat regions are not as favorable as those for the Corn Belt. Even then, better crop potential in Black Sea countries seems to be capping wheat prices. As a whole, though, comments surrounding planting and production of this year’s crops seem to be getting a little exaggerated. If so, there’s a chance the emotions they have vested in current prices may be close to peaking, too.
AgriVisor endorses crop insurance by
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number
309-557-2274
Cents per bu.
2010 crop: Corn prices rebounded on continued planting delays in the eastern and northwestern parts of the Corn Belt. Use strength to wrap up sales, even “gambling bushels.” Hedge-to-arrive (HTA) contracts for summer delivery are the best tool, especially with the flood still weighing on interior basis levels. 2011 crop: There’s still a chance of new highs, but December futures couldn’t hold the rally to a new contract high. Good risk management practices dictate moving sales up to 50 percent of a conservative yield because so much emotion has already been vested in this market. HTAs for fall/early winter delivery are the best tool for sales. Fundamentals: Talk surrounding planting, whether it’s the weather or the possibility of producers taking preventedplanting insurance payments in lieu of planting the crop, dominates the day-to-day action. Even though the insurance “planting date” is just ahead, we don’t see a significant shift until mid-June. Meanwhile, there are small hints demand may be softening.
Soybean Strategy 2010 crop: Even though soybean prices remain firm, new highs are unlikely unless summer weather becomes an issue. Use strength to wrap up old-crop sales. 2011 crop: The rebound in the other grains is the biggest factor supporting newcrop prices, although planting questions are playing their part. November again is testing $13.75-$14, a level that has rejected rallies this year. Use a rally to that area to get newcrop sales to 50 percent on a conservative yield. We continue to prefer fall/early winter HTA contracts. Fundamentals: The talk about producers taking prevented-planting insurance payments is augmenting perceptions that new-crop fundamentals could be relatively tight. But the delay in corn planting could shift some acreage to soybeans. And there are indications plantings could increase in Brazil this coming
year. Chinese plantings are expected to decline, but the shift only represents only 36 million bushels if yields are normal.
Wheat Strategy 2011 crop: Following a brief correction, the wheat market once again turned higher on crop concerns. If Chicago July futures close above $8.21, it would open the door for a test of the $8.65 high. The market could strengthen into harvest if weather problems persist. Plan to increase sales to 65 percent if Chicago July trades above $8.50. We prefer HTA contracts, especially for winter delivery if you
have the capability to store wheat. Fundamentals: Going forward, the market may continue to take its cues from the hard red spring contract traded on the Minneapolis Grain Exchange, as spring wheat planting progress has struggled because of excessive rains. The most recent USDA planting progress report showed only 54 percent of the spring wheat planted vs. the five-year average of 89 percent. Drought issues continue to remain a concern in northern France and Germany. But the Black Sea crops still look good.
FarmWeek Page 12 Monday, May 30, 2011
PERSPECTIVES
‘We were never taught to hate.
We were taught to win.’ Steele shares WW II story Editor’s note: Harold Steele, former Illinois Farm Bureau president, is well known to many Farm Bureau members, but they may not be familiar with his soldier’s story, offered here for Memorial Day. Matt Carton, a recent University of Illinois graduate, worked in Germany through his internship with BASF. Carton attributed the experience with giving him an edge in the job market. (Photo courtesy Matt Carton)
International ag internship gives student an edge in the job market Internships are becoming an increasingly important part of career preparation for college students who want an edge in the job market. In addition, international study experiences are recommended for students. Recent University of Illinois graduate Matt Carton, Atkinson, experienced both when he interned with BASF. Carton, who graduated in December, worked as a value chain management intern with BASF Plant Sciences GmbH in Limburgerhof, Germany. He learned about AMELIA the internship MARTENS through an Internaguest columnist tional Business Immersion Program (IBIP) during the summer after his sophomore year. That program consisted of a two-week field trip in Europe and a tour of businesses, including BASF, in five different countries. “They wanted an intern from our class to work for them during the next spring semester,” Carton said. “I applied and was fortunate enough to be selected.” During his four-month internship, Carton was a member of a team that developed business strategies for various genetically modified crops. His main project was to develop a costof-production model for a specified crop in different growing regions. Carton also screened available market data needed to construct his business model and to coincide with his expected tasks. In addition, he learned the dynamics and potential of a particular market sector, aquaculture, and how to contribute to the development of a business model. Much of his work centered on canola. Carton analyzed a potential market for canola oil in aquaculture. He investigated various feed companies to see if there was a fit for BASF canola oil. He determined the total costs to produce and deliver canola in four regions in the United States and two in Canada. He also calculated potential revenue, profit, and net present values for BASF. Carton’s internship taught him how to develop, embellish, and grow business strategies. It provided him with a better understanding of the trait-development process. Living and working in a different culture helped him be more accepting of
different cultures and lifestyles. Carton said the best part of his internship was experiencing a new culture and atmosphere that was different from home. “Coming from an agricultural background, I was used to the farmer perspective on genetically modified organisms (GMO),” he said. “I found it interesting to be on the other side of the fence and be a part of the development team and trying to understand what it takes to make a GMO possible.” Perhaps the most challenging part of Carton’s internship proved to be the best part. “Being immersed into a new culture where I did not even speak the language was surreal,” he said. “It gave me a greater appreciation for different beliefs and values, and helped me understand that there is more to the world than corn and soybean fields.” Carton said the internship was great preparation for his future career. After receiving his degree, he accepted a position with Wyffels Hybrids Inc. “The training process helped me work with people from different backgrounds and with different opinions,” Carton said. “I know that my opinion is not always right, and that other perspectives can be of value.” An agricultural and consumer economics graduate, Carton credited his education at the U of I for preparing him for this internship experience. “Being on campus with so many people from diverse backgrounds was beneficial to my internship abroad,” he said. “Not every college kid gets to experience an internship in a foreign country. That, combined with the responsibility that was placed on me, was second to none.” Carton encouraged other students to apply for this internship. He pointed out that it was a “once-in-a-lifetime opportunity” that few college students obtain. “This is the kind of opportunity that really makes a person stand out, and the experiences gained are tremendous,” he said. Amelia Martens is a freshman from Orion studying agricultural communications at the U of I College of Agricultural, Consumer, and Environmental Sciences.
Growing up on a farm near Dover during the Great Depression, Harold Steele was no stranger to hard work and grim conMARK DEPUE ditions. He was educated guest columnist early in the harsh realities of life, but also in the restorative nature of the fertile Illinois soil. Steele loved that life and following high school enrolled at the University of Illinois, majoring in animal science. By 1944, Steele found himself immersed in a dramatically different world. A newly minted second lieutenant, he was assigned as an infantry rifle platoon leader in the 89th Division. Farm kids made good soldiers, but this was different. He now found himself responsible for some 40 lives, young men he would lead into combat against seasoned veterans of the Wehrmacht. Steele got his baptism under fire and earned a Silver Star in the spring of 1945 during the unit’s Moselle River crossing. “As First Lieutenant Steele led his men toward formidable enemy defenses which were supported by machine gun and automatic rifles,” the award citation reads, “he and his platoon encountered a minefield. “Personally reconnoitering a safe route, he led his men out of the area, and then resuming the attack, captured the first objective, killing ten men. He then led the assault to the next objective ... despite enemy machine gun and sniper fire. “When his platoon was ordered to a new position, First Lieutenant Steele personally administered first aid to a seriously wounded man and helped carry him one and a half miles to safety.” Harold describes the event more modestly: “I just carried out my training experiences as best I could under real conditions.” His answer is typical of those who have personally seen the horrors of combat. No barroom bravado; just the unvarnished facts. Just weeks later, Steele’s platoon was among the first to discover the Ohrdruf Concentration camp, a satellite camp of Buchenwald, and the first of the death camps dis-
covered by the Allies. Steele described the scene: “Here in this open area of the enclosure were the bodies that had just been machine gunned. They were clothed in striped prisoner uniforms and their bodies were crumpled. “And that was the first shock. But then I looked over to my left and here was a high pile stacked like cordwood of many, many emaciated bodies. “And as I walked over to that area, there was a deep hole, and there were more bodies covered with slaked lime. I knew it was slaked lime because as a farmer when we had an animal die, we’d dig a hole and put the slaked lime on the carcass ... We stood in horror to realize that this was a death camp. “I was in shock to think that this happened only a short distance from us. Why couldn’t we have been there before to save them?” When asked about the brutality, Steele replied, “We were never taught to hate. We were taught to win. We were taught to win through tactics, weaponry.” Nothing in his training could prepare him for what he and his men found at Ohrdruf. The memory of that day has left its mark on him, even after all these years — memories that stubbornly refuse to go away. Steele also has happier memories of the war. By 1946 he was on duty in Vienna when a friend insisted on arranging a blind date for him so he could attend the Colonel’s Ball. “Hal, you need to go,” pleaded his friend. “It’s the Colonel’s Ball. He expects you to be there.” As fate would have it, he was stuck on special duty that evening and was late when he arrived to pick up his date, Margery Whiteley, a former OSS (Office of Strategic Services) cryptographer from New York City. The rest, as they say, is history. After Margery scolded Harold for being late, the two soon found plenty to talk about and finished their night at 5 a.m. over coffee. By October of 1946 they were married. You may listen to Steele’s entire story and those of other veterans online at {www.alplm.org/oral_history/projects.html}. “I learned in uniform to respect the flag,” Steele reflected some 60 years later, “to respect the very essence of the words of the Constitution our founding fathers put in order.” Mark DePue is director of oral history for the Abraham Lincoln Presidential Library and Museum.