Farmweek 10-18-2010

TWO INDUSTRY analysts are projecting oil prices once again may hit triple digits, leading to pain at the pump. .....................2

ETHANOL PLANTS have reduced water used per gallon of ethanol by more than 50 percent; more may be possible. ................3

T H E U. S . E PA r e c e n t l y extended the deadline for complying with its spill rules for a limited number of farms. ...........................4

Monday, October 18, 2010

Two sections Volume 38, No. 42

EPA E15 announcement draws mixed reactions

BY DAVE MCCLELLAND FarmWeek

Periodicals: Time Valued

The U.S. Environmental Protection Agency’s (EPA) ethanol announcement last week was mildly hailed by some and generally assailed by others.

EPA announced it was waiving the limitation on selling motor fuel that contains 15 percent ethanol — but only for model year 2007 and newer cars and light trucks.

Since 1979, the amount of ethanol in gasoline has been limited to 10 percent, and that remains the limitation for model year 2000 and older cars and light trucks.

A decision on the use of E15 in 2001 through 2006 model year vehicles is not expected until testing is completed in November.

Congress has mandated the production and delivery of 36 billion gallons of renewable fuels by the year 2022.

Last week’s announcement means 43 million cars and light trucks will be able to use gasoline containing up to 15 percent ethanol.

“With the move to E15, we’re creating a bigger market for American ethanol,” said Philip Nelson, president of

Illinois Farm Bureau.

“With more ethanol production, we’re creating more jobs (estimated by some at 136,000), reducing our depen-

FarmWeekNow.com Check out audio comments and reactions to the E15 decision at FarmWeekNow.com.

dence on foreign oil, improving our environment, and strengthening our national security,” said Nelson.

For some, the EPA announcement was akin to their favorite football team failing to score after four tries from the one-yard line. They

were heartened that they got that far; disheartened that they couldn’t punch it across.

“We’re disappointed in the very limited scope of this approval, but pleased the EPA has finally taken action to partially approve the waiver request to allow higher blends of ethanol in some motor vehicles,” said National Corn Growers Association (NCGA) President Bart Schott.

“We believe this bifurcation (allowing use of E15 in come vehicles but not all) of the approval process, and the labels that are expected to be placed on higher-blend fuel pumps, can lead to general consumer confusion and,

therefore, act counter to the original intent,” he said.

“Limiting E15 use to 2007 and newer vehicles only creates confusion for retailers and consumers alike,” said Bob Dinneen, CEO of the Renewable Fuels Association.

“The goals of Congress to reduce our addiction to oil captured in the Renewable Fuels Standard cannot be met with this decision.”

“EPA’s decision certainly isn’t the best-case scenario,” said Tim Lenz, president of the Illinois Corn Growers Association.

“The bright spot is that this decision by EPA does start the ball rolling on the long list of

paperwork processes that have to happen to get any new fuel to market. No decision from EPA would have meant no progress on that front. For this, we are grateful,” Lenz said.

ICGA and NCGA continue to point to a recent research study partially funded by the Illinois Corn Marketing Board that supported use of E15 in cars and light trucks built between 1994 and 2000.

Livestock producer groups were skeptical about the EPA announcement and what it may mean for feed prices.

“Corn ethanol production See EPA, page 2

Commodity groups: Enough corn for all users

BY DANIEL GRANT FarmWeek

Commodity groups are working to reassure customers around the world that the U.S. corn supply will satisfy demand.

Concern about corn supplies cropped up when USDA on Oct. 8 shocked traders by cutting its corn production estimate for the current U.S. crop by 500 million bushels.

That news was followed last Wednesday with the U.S. Environmental Protection Agency’s decision to raise the ethanol blend level from E10 to E15 for 2007 and newer vehicles.

Corn prices the past week subsequently jumped to twoyear highs based on the tighter supply and increased demand.

U.S. corn production this year is projected to be close to 12.7 billion bushels compared to the previous estimate of 13.2 billion bushels.

The U.S. Grains Council (USGC) “does not anticipate these production levels will dramatically alter the U.S. position in the global marketplace in the long-term,” said Tom Dorr, president and CEO of USGC. “In the short-term, however, it will have an effect on prices and we need to be

sensitive to that.”

A number of market analysts last week recommended end-users, such as livestock producers, extend their coverage on any price breaks and attempt to lock in a basis on corn.

But while prices are expect-

ed to be higher, the National Corn Growers Association (NCGA) still expects a corn surplus this year.

Total corn production (12.7 billion bushels) and ending stocks (1.7 billion bushels) would cover the demand estimate of 13.5 billion bushels

and still leave ending stocks near 1 billion bushels.

“This may not be a record year, but we’re bringing in the corn and meeting all needs, even for our export markets,” said Bart Schott, NCGA president.

See Enough, page 4

MOVING CORN

Chris Herring, Ipava, (in the tractor cab) and Steve Shockency, Astoria, (standing in the semi) were moving corn out of a field near Astoria last week. They work for Brian and Jennifer Lehman, Vermont.

Lehman reported his corn yields were down about 25 percent this year while soybean yields were average. The Lehmans expected to finish harvest early this week. (Photo by Ken Kashian)

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, October 18, 2010

ENERGY

Quick Takes FSA REQUESTS FORMS — Some producers last week received a letter from Farm Service Agency (FSA) regarding problems with Internal Revenue Service income compliance forms (CCC-927 and CCC-928). FSA is asking producers to resubmit these forms to maintain their farm program eligibility. Questions should be directed to the county FSA office.

MORE STUDENTS STUDYING AG — High school agriculture and horticulture classes continue to attract more students in Illinois, according to Jay Runner, coordinator of the Facilitating Coordination in Agricultural Education (FCAE). Most of those students — 90 percent — don’t live on farms.

Illinois students also are receiving additional high school credits, in addition to an elective credit, for enrolling in ag classes, Runner added.

Currently, 81 percent of Illinois high school ag programs offer students academic credits in math, science, language arts, social studies, or consumer economics for their advanced-level courses. Illinois’ ag curriculum is used in 24 other states.

HUNTERS DONATING VENISON — Deer hunters may donate venison to help feed hungry state residents through the state’s Target Hunger Now initiative. Hunters may donate a whole deer for processing and the venison will be donated to participating food pantries, food banks, and other charities.

Cash donations to the Illinois Conservation Foundation also are being accepted to help pay the processing cost.

Since 1994, more than 674,750 pounds of venison have been donated, including more than 50 tons last year.

LOOKING TO BUILT TRUST — About 60 representatives from more than 20 national food and agricultural organizations last week agreed to incorporate a U.S. Farmers and Ranchers Alliance (USFRA) to focus on working together to enhance U.S. consumer trust in modern food production.

In August, five Illinois farm organizations announced a coalition effort to update the image of farmers in the state to build more public trust in farmers and farming. USFRA is expected to complement Illinois’ work.

Dennis Vercler, manager of the Illinois effort and publisher of FarmWeek, called the newly announced national effort “welcome news for all U.S. farmers who face consumer mistrust and misunderstandings.”

Organizers of USFRA said the organizational meeting represents “only the beginning of a process designed to create a coordinated effort by and on behalf of U.S. farmers and ranchers.”

Organizations have been asked to respond about affiliation no later than Nov. 1. After that date, a board of directors will be established and will elect an executive committee.

Members of the USFRA board, its executive committee, and its affiliated organizations will be announced formally in mid-November.

(ISSN0197-6680) Vol. 38 No. 42

October 18, 2010

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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard

Analysts: Oil prices poised to break triple digits soon

BY DANIEL GRANT FarmWeek

Recession-weary consumers may be in for a scare fit for Halloween when they fuel their vehicles and heat their homes this winter and well into next year.

Two industry analysts this month projected oil prices once again are poised to break triple digits.

“I look for substantially higher oil prices by this time next year with some trades over $100” per barrel, Jim Allwood, senior vice president and director of energy services for Informa Economics, said this month during the Export Exchange in Chicago.

Peter Georgantones, analyst with Investment Trading Services, made a similar projection in his near-term outlook at the event.

“We’re going over $100 (per barrel) in crude oil. You can smell it,” he said. “Everybody is buying commodities right now.”

The Energy Information Administration’s (EIA) winter fuels outlook released last week projected oil prices this winter will average $80 per

barrel ($2.50 per barrel higher than last winter) and reach an average of $85 per barrel by the fourth quarter of 2011.

“By the end of next year, I believe world demand for petroleum will be as high relative to supply as it was in 2007 and the first half of 2008 when we saw $147-perbarrel oil,” Allwood said.

“I don’t think it will get that high this time. I believe OPEC (the Organization of Petroleum Exporting Countries) will increase production more quickly in an effort to sustain economic recovery.”

In fact, Allwood believes OPEC could hold all the cards when it comes to oil pricing in the future.

He noted the production of oil and liquid fuels in nonOPEC countries has been flat. And the analyst looks for that trend to continue.

“An increase in demand will bring a need to increase production from OPEC,” Allwood said. “They control our ability to sustain economic growth the next decade.”

Oil prices also could be supported by the value of the

U.S. dollar. Petroleum is priced worldwide in dollars, and a weaker dollar, which has been the trend, supports higher petroleum prices, Allwood said.

The U.S. likely will remain heavily dependent on oil imports to meet its petroleum needs. Oil reserves available in the U.S. are more difficult to extract and likely don’t make economic sense to recover until oil prices go as high as $150 per barrel, according to the analyst.

EIA’s winter fuels outlook last week also predicted an increase (2.5 percent) in household expenditures for space-heating fuels compared to last year.

Meanwhile, the projected natural gas inventory by the end of this month (3.7 trillion cubic feet) would be down 3 percent compared to last year’s record but still would be the second-highest on record for the month of October.

EIA projected the average spot price of natural gas will rise from $3.95 per million British thermal units in 2009 to $4.47 this year and $4.58 in 2011.

Biotech firm exploring revamp of ethanol plants

BY KAY SHIPMAN FarmWeek

A new company is exploring the production biobutanol by converting existing ethanol plants and applying a process developed at the University of Illinois.

Chicago-based TetraVitae Bioscience is focusing on the commercialization of biobutanol, which has a 3-billion-gallon market, said Nat Harrison, TetraVitae’s vice president of business development.

“Ethanol today produces a single product, but there are opportunities for more products and co-products,” said Hans Blaschek, a cofounder of the firm and the U of I professor who advanced the technology.

Harrison said the company’s strategy is to convert ethanol plants that use corn in the U.S. and sugar cane in Brazil. “There are many ethanol plants in the United States and a number of potential partners,” he said.

Asked if the company has met with plant owners in Illinois or elsewhere in the Midwest, Harrison answered that TetraVitae has been speaking with a number of owners, but declined

to name them or their locations.

In May, TetraVitae completed a demonstration project of its technology at the National Corn-to-Ethanol Research Center in Edwardsville. In August, the firm completed a distillation scale test of its production technology at a University of Texas laboratory.

Biobutanol would offer converted ethanol plants an opportunity to sell products in the paint, plastic, and solvent industry sectors.

“The (ethanol plants’) returns have been up and down. We think we can offer (them) more stability,” Harrison said. “We think we have a strong cost position compared to major petrobutanol productions.”

In addition, “the conversion process does not rule out ethanol (production in the future).

It (production) could go back and forth,” Harrison noted.

Plus biobutanol could avoid the “food vs. fuel” controversy of converting corn and sugar into an industrial product, according to Harrison. “The nice thing about our technology is it can use other cellulosic feedstocks,” he explained.

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Continued from page 1 is significant to the cattle industry because of its impact on feed grain prices,” said National Cattlemen’s Beef Association President Steve Foglesong.

The National Pork Producers Council (NPPC) Ethanol Task Force Chair-

man Randy Spronk said NPPC was withholding comment on the blending rate hike, but added, “Any upward pressure on corn prices will have a negative effect on producers.”

The increased ethanol use is not expected to impact food supplies or

prices, primarily because U.S. farmers this year produced the third-largest corn crop in history.

And increased ethanol production means more distillers dried grains production, which could help mollify concerns about increased feed costs.

FarmWeek Page 3 Monday, October 18, 2010

ENVIRONMENT

Ethanol producers more efficient on different fronts

BY KAY SHIPMAN FarmWeek

Ethanol production is becoming more efficient when calculated by various measurements, several experts said at last week’s forum at the University of Illinois’ Center for Advanced BioEnergy Research (CABER) in Champaign.

Kishore Rajagopalan with the Illinois Sustainable Technology Center noted ethanol manufacturers continue to reduce the amount water used per gallon of ethanol produced and may be able to make further reductions. (See accompanying story.)

Over the years, ethanol plants have reduced water used per gallon of ethanol from 6.5 gallons down to 3 or fewer gallons, according to Rajagopalan.

Ethanol producers also are using less energy to pro-

duce ethanol. Steffen Mueller with the U of I-Chicago reported ethanol plants have made major reductions in energy use, based on a 200910 ethanol plant survey.

“There have been significant improvements in (energy)

efficiency compared to 2001 (survey results),” Mueller said.

Today’s ethanol plants use 28 percent less thermal energy and 32 percent less electricity per gallon of ethanol produced, he said.

The ethanol industry needs to consider many factors to be both efficient and economical, said Seth Snyder, head of the chemical and biotechnology section of Argonne National Laboratory’s energy systems division.

“From the national standpoint, (the bioenergy industry) is not engaged in the idea (of producing) a full suite of products to be successful,” instead it is focused only on fuel, Snyder said.

Scientist offers ideas to gain more ethanol from a gallon of water Ethanol plants are using less water but potentially could use even fewer gallons, according to a scientist with the Illinois Sustainable Technology Center, Champaign.

“Water use can be reduced substantially in ethanol manufacturing,” said Kishore Rajagopalan, the center’s associate director. He speculated the amount of water used may be cut to less than a gallon for each gallon of ethanol produced.

Currently, ethanol plants use about 3 gallons of water for every gallon of ethanol produced, Rajagopalan noted.

“Because water is such a small cost component (of ethanol production), the

ethanol industry hasn’t been as aggressive in (pursuing) water-saving technology,” he added.

Rajagopalan offered several practices to reduce water usage at ethanol plants.

His water-saving ideas include minimization of cooling tower (water) waste and operational changes, primarily giving more attention to plant water uses and losses. He also suggested plants re-use filtered water.

“To go further, (ethanol plants) could use other (types) of water besides fresh water,” Rajagopalan said. For example, a manufacturer could treat municipal effluent as an alternative water source

for use in the cooling towers.

The scientist estimated ethanol plants using current technology could reduce their water consumption by 10 to as high as 25 percent. However, “there are regulatory hurdles to overcome before some practices could be implemented,” he added.

Rajagopalan said all of his proposals have not been tested in an ethanol plant, but said he is interested in working with a manufacturer. He also noted the quality of available water varies from location to location and some practices must be tested on a case-by-case basis. — Kay Shipman

Illinois rates well in new national analysis on forest stewardship

An architect’s rendering shows a view of Eastern Illinois University’s new renewable energy center that is under construction on the southeast side of the Charleston campus. The new plant will run on ground wood chips initially, but campus officials envision using other biomass fuel in the future. (Illustration courtesy Eastern Illinois University)

EIU represents early biomass market with new energy plant Coles County is gaining a new biomass fuel market and may one day grow its own renewable fuel, according to Gary Reed, Eastern Illinois University’s (EIU) director of facilities.

EIU is building a new renewable energy plant to power its Charleston campus and replace a coal-fired steam plant that was built in 1925.

“We represent one of the early markets of biomass,” Reed said. “I envision being able to grow our own sustainable fuel in Illinois.”

Last week, Reed spoke during a forum at University of Illinois’ Center for Advanced BioEnergy Research (CABER).

Initially, the plant will burn wood chips in its new gasification plant that tentatively will go online in April and be commissioned in the summer.

EIU is installing two gasifiers in the new plant with an eye toward testing different bio-

mass fuels. “I’m interested in studying other (fuel) options besides wood,” Reed said. Reed said that once the system is operational, EIU will become the first campus entirely dependent on biomass energy, to the best of his knowledge.

The university plans to have a 10-day supply of wood fuel on hand but will have gas/fuel oil boilers available as an emergency backup system.

The plant is part of an $80 million energy performance contract that includes 16 energy conservation measures with Honeywell International Inc. The contractors have guaranteed the biomass system will pay for itself in 20 years, according to Reed.

Reed estimated the new plant will produce about 600 tons of ash annually, but he was uncertain what will be done with the ash. — Kay Shipman

Forest stewardship has increased on America’s family forests since the 2008 farm bill, according to a new study, Forest Conservation in 2009: A Farm Bill Progress Report, released last week.

“Most Americans think our forests are owned by state and federal governments. But the greatest segment is actually owned by families and individuals,” said Tom Martin, president of the American Forest Foundation, which developed the report.

“All Americans rely on these forests for clean water, clean air, carbon storage, recreation, and the wood products we use every day. The 2008 farm ‘Most Americans bill was a strong beginning t h i n k o u r fo r e s t s toward acknowledging these public benefits and investing are owned by state in protecting them.” a n d fe d e r a l g o v The study found that states ernments. But the vary significantly in their focus on forestry vs. other greatest segment land types, and the use of actually is owned farm bill program resources by families and infor forests: dividuals.’

• States range from 71 percent to 0.05 of a percent of Environmental Quality Incen— Tom Martin American Forest Foundation tive Program (EQIP) funding used for forestry.

• Alaska, Alabama, Illinois, New Hampshire, and Ohio all top the list, spending more than 10 percent of their funding on forestry.

Other report findings include: • Farm bill programs helped 36,000 landowners conserve more than 1.019 million acres of forest land just in 2009 alone.

• EQIP funding for forest conservation activities has increased by 134 percent since 2007.

• Wildlife Habitat Incentive Program (WHIP) funding has increased 296 percent for forested habitats.

• EQIP and WHIP together devoted more than $40 million in 2009 — up from $14 million in 2007 — to practices such as wildlife habitat improvement and thinning to reduce fire risk.

• The Forest Stewardship Program helped nearly 16,000 forest owners develop management plans that promote good stewardship and cover more than 2 million acres.

To generate the report, the American Forest Foundation analyzed data provided by the Natural Resources Conservation Service, the Farm Service Agency, and the U.S. Forest Service.

FarmWeek Page 4 Monday, October 18, 2010

ENVIRONMENT

EPA extends storage plan deadline for ‘new’ farmers, some dairies

BY KAY SHIPMAN FarmWeek

For a limited number of farms, the U.S. Environmental Protection Agency (EPA) recently extended the deadline for complying with Spill Prevention, Control and Countermeasures (SPCC) rules, according to Nancy Erickson, Illinois Farm Bureau director of natural and environmental resources.

The new deadline of Nov. 10, 2011, applies only to farms that started operation after August 2002.

However, farms in operation before 2002 are under the SPCC rule and should have a plan in place or updated to comply with the new requirements by Nov. 10, 2010, Erickson said.

Erickson noted EPA also delayed the SPCC compliance date for facilities that must address milk and milk product containers, associated piping and accessories constructed according to currently applicable 3-A Sanitary Standards, and that are subject to the currently applicable Grade “A”

Pasteurized Milk Ordinance (PMO) or the equivalent state regulatory requirement.

The date is delayed one year from the effective date of a final rule specifically addressing these milk and milk product containers.

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

week at the Export Exchange in Chicago.

Meanwhile, corn used for ethanol production isn’t a total loss for livestock producers.

Each 56-pound bushel of corn used in dry mill ethanol production generates 17.4 pounds of distillers dried grains (DDGs), a high-energy feed ingredient.

“One error in the anti-biofuels argument is it gives no credit to the byproduct,” Bob Thompson, consultant with the National Center for Food

and Agricultural Policy, said at the Export Exchange.

“After corn is processed into ethanol, all the protein and energy are still there,” he continued.

“You have a very good livestock feed in DDGs.” U.S. DDGs production from 2004 to 2009 nearly tripled from 11 million tons to 30-plus million tons.

That production is expected to surpass 33 million tons this year and push the 40-millionton mark in the next few years.

Enough Continued from page 1 USDA this month lowered the national corn yield from 162.5 bushels per acre to 155.8 bushels per acre.

Overall, the crop still would be the third-largest on record and compare favorably to the 2008 corn crop that totaled 12.1 billion bushels with an average yield of 153.9 bushels per acre.

“American farmers consistently produce what we need to meet the demand for all our customers,” Dorr said last

tanks smaller than 55 gallons are exempt.

The rules require farms that meet a certain storage threshold to prepare and implement a plan to be kept at the farm and have a secondary containment structure around their tanks or use double-walled tanks.

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

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

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

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

In addition to meeting the spill history requirement, smaller-capacity facilities must have 10,000 or fewer gallons of aggregate storage and cannot have any single aboveground storage container with

capacity for more than 5,000 gallons.

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

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

They also may self-certify a plan, but they cannot use the EPA template.

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

A plan template for smallercapacity facilities is online at {www.epa.gov/emergencies/ content/spcc/tier1temp.htm}.

EPA issues five-year plan

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The U.S. Environmental Protection Agency (EPA) recently issued a five-year strategic plan for fiscal years 2011-15. The plan includes five strategic goals to meet the agency’s mission related to human health and the environment.

The strategic goals include: taking action on climate change and improving air quality; protecting America’s waters; cleaning up communities and advancing sustainable development; ensuring the safety of chemicals and preventing pollution; and enforcing environmental laws.

Those goals reinforce EPA Administrator Lisa Jackson’s priorities, such as reducing greenhouse gases, adapting to climate change, and promot-

ing smart growth within communities.

Commenting on the goals, the American Farm Bureau Federation’s Rich Krause said, “On the surface, it looks like ‘motherhood and apple pie’ — who can be against cleaning air and cleaning water?

“But, once you get beneath the surface, then you see that this ... will cost people jobs, it will cost people money.

“For example, greenhouse gas regulations will impose a lot of additional costs on farmers, ranchers, and other people, other consumers ... all with the idea that it will reduce global temperatures by less than one-hundredth of a degree in a hundred years.”

For more information, go online to {www.epa.gov/ocfo/ plan/plan.htm}.

FarmWeek Page 5 Monday, October 18, 2010

TECHNOLOGY

Southern Illinois receives $45 million broadband infrastructure project Southern Illinois broadband infrastructure will take a major step forward following last week’s announcement of a $45.4 million project, which includes a $31 million federal grant.

Gov. Pat Quinn joined by state and local leaders at John A. Logan College

announced the $45.4 million project of fiber optic broadband infrastructure in 23 Illinois counties.

In addition to the grant from the U.S. Department of Commerce, project funding includes $11.3 million from the Illinois Jobs Now! capital program and $2.5 million in private funding.

The federal grant proposal was submitted by Delta Communications LLC/Clearwave Communications on behalf of the Illinois Broadband Opportunity Partnership’s southern region.

Harrisburg-based Clearwave Communications will use funding to connect

about 232 community institutions, such as schools and libraries.

The counties involved in the project include Alexander, Clay, Clinton, Edwards, Franklin, Hamilton, Jackson, Jefferson, Johnson, Marion, Massac, Perry, Pulaski, Randolph, Richland, Saline, St. Clair, Union, Wabash, Wash-

ington, Wayne, White, and Williamson.

The project is one of 17 broadband expansion awards the state has received since February. These awards represent a $350-million-plus investment in Illinois broadband and include nearly $245 million in federal stimulus funds.

U of I, mass transit district receive IEPA clean diesel grant The University of Illinois and the Champaign-Urbana Mass Transit District (CUMTD) have received the largest clean diesel grant ever issued by the Illinois Environmental Protection Agency (IEPA) through its Illinois Clean Diesel Grant Program, IEPA Director Doug Scott announced last week.

The $445,000 grant will be used to retrofit 43 buses in the CUMTD

fleet with diesel particulate filters.

Xinlei Wang, a U of I agricultural and biological engineering professor, conducted field tests and evaluation of filter technology that captures about 90 percent of the diesel soot and up to 85 percent of the hydrocarbons and carbon monoxides emitted from the buses’ tailpipes.

“These filters will remove 5.7

tons of pollutants each year, with 81 tons reduced over the life of the buses,” Wang said.

Wang began working with the CUMTD in 2006 and received a $50,000 U.S. EPA grant to install filters on four CUMTD buses in a pilot project.

CUMTD also bought several hybrid electric buses for its fleet.

“When all 43 filters are installed

and running, in conjunction with the hybrid buses that are now in service, 80 percent of our fleet will have clean emissions,” said Bill Volk, CUMTD managing director.

“We hope to obtain another 21 vehicles over the next two years, and at that point, 100 percent of our fleet will have emissions as clean as they can be under current technolog y.”

Agricultural solutions focus at U of I ECI annual summit Agricultural practices that can mitigate climate changes and adaptation of agriculture for climate changes will be discussed Tuesday, Nov. 9, at the University of Illinois Environmental Change Institute’s (ECI) annual summit.

The event will start at 7:45 a.m. in the I Hotel and Con-

ference Center, Champaign.

The early registration deadline is Nov. 5.

In the keynote address, Mark Seeley, a climatologist and meteorologist, will discuss anticipated changes over the next 50 years, and their implications for land use, landscape, and infrastructure.

NRCS extends CSP sign up Natural Resources Conservation Service (NRCS) Chief Dave White has announced the application deadline for the Conservation Stewardship Program (CSP) has been extended to Jan. 7, 2011.

CSP was authorized in the 2008 farm bill and offers payments to farmers who maintain a high level of conservation on their land and agree to adopt higher levels of stewardship.

The extension is intended to allow more producers to participate in the program, according to White.

CSP provides conservation improvements, including water and soil quality, wildlife habitat enhancement, and the adoption of conservation activities that address climate change.

Eligible land includes cropland, pastureland, rangeland, and non-industrial forestland. For more infor mation on CSP, contact your local NRCS office or g o online to {www.nrcs.usda.gov/programs/new_csp/csp.html}.

State museum’s ag website honored An audio-video website of Illinois agricultural history that includes comments from several Illinois Farm Bureau members has received an international honor.

Last week, the Oral History Association announced the Illinois State Museum will receive its major project award for the museum’s oral history of Illinois agriculture project.

The international award is presented once every two years.

The ag history website features 300 hours of interviews of more than 130 people involved in agriculture and

rural life in the state. Launched in 2009, the website is accessible free of charge online at {http://avbarn. museum.state.il.us}.

Information covers the general topics of land, plants, animals, people, and technology.

Information may be searched by topic, name, date, or location.

The website also features educational resources for teachers and students, including 33 activities in the fine arts, language arts, and natural and social sciences.

Speaker topics will include: chemical management and soil fertility, agricultural productivity, precision agriculture, crop genetics and resource dynamics, organic, and sustainable farming.

The ECI mission is to focus the U of I’s resources and research capabilities to advance the understanding of

global environmental change and offer solutions, said Wesley Jarrell, the interim director of ECI. The registration fees are $150 for corporate and industry members; $50 for academic members; and $25 for students, members of not-forprofit groups, and non-government organizations.

Registration must be com-

pleted by Nov. 5 to ensure meals. Registrations will be accepted at the door, but meals cannot be guaranteed.

For more information or to register online, go to {http://eci.illinois.edu/newsevents/eci-summit/}.

To register by phone, call Lori Spencer at 217-244-0965 or Karen Decker at 217-3330548.

FarmWeek Page 6 Monday, October 18, 2010

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Another great week for harvesting here in Northern Illinois. No rain, sunny skies, warm days, excellent yields, dry corn, good prices for corn and beans, what else can I say? The elevators are starting to get filled up, are closing early and are starting to pile corn outside in some locations that never had to do that before. Most people are ready for a rainy day to catch up on everything, including resting up. Have a good week and stay safe.

Pete Tekampe, Grayslake, Lake County: Another warm, dry week in Lake County. We had a light shower Wednesday morning that was more like heavy dew. Beans are mostly done with very good yields. It’s unusual to be able to start cutting beans and finishing them without any stoppage because of moisture. Corn is about 30 percent done, with most of the moisture levels in the teens. Some third- and fourth-cutting hay was baled last week. A slight chance of showers exists for today (Monday). Most of the winter wheat is planted with the early-planted fields looking good, even without much moisture. Have a safe week harvesting and be careful.

Leroy Getz, Savanna, Carroll County: Dry and dusty and harvest continues at a record pace. No rain — we’ve had 1.7 inches in the last six weeks.

There are still a few fields of soybeans to harvest. Cornstalks are too dry and field loss is occurring at the rollers. Stalk quality has been very poor; however, the fields that had fungicide applied are standing much better. Fall tillage has been going on at a record pace. Enjoy the fall colors even though they aren’t as brilliant as some year’s.

Ron Frieders, Waterman, DeKalb County: The 2010 harvest is coming to a close fast.

Some are done and most are finishing up. Fall fertilization and tillage are in full swing. Soybean yields were mostly above average. Corn yields were extremely variable with some good yields, but most below average to far below. Last year, we couldn’t get enough LP to dry the corn. This year, we hardly burned any. Most corn came out of the field below 15 percent. In 40 years of farming, I have never seen such extremes as in the past two years.

Larry Hummel, Dixon, Lee County: It feels like we are harvesting back in the dark ages.

The yield monitor on our combine broke down almost a week ago and we are still waiting for parts. Meanwhile, we don’t know what our field averages were on three farms. We missed out on a check of Cobra for white mold suppression, and I have no idea what kind of yield loss we took on some beans that were decimated by hail early in the summer. Isn’t it amazing how spoiled we get after getting used to technology? Harvest progress continues to move forward. Depending on which direction you drive from my house, corn is either 85 or 50 percent completed, so I will go with an average of 67.6 percent. It’s tough to find a soybean field that is still standing.

Ken Reinhardt, Seaton, Mercer County: Another dry week.

Soybean harvest is winding down rapidly with the latestplanted ones being cut. Another week of good weather will finish up many corn producers. I should finish up in Mercer County today (Friday). Corn yields are all over the place. It’s no wonder the government can’t figure it out.

Corn is all dry — my wettest load was 17 percent and most are below 14 percent.

Ron Moore, Roseville, Warren County: We finished bean harvest last week and will be done with corn this week. Yields have not improved since the beginning of harvest. Lots of tillage and fertilizer application are going on now. We have had little, if any, rain since early October. We could use one to settle the dust.

Mark Kerber, Chatsworth, Livingston County: Another week of great weather to enjoy working this fall. Fall tillage is still going along with trying to get fertilizer spread between barge loads.

Limestone also is running short depending on location. As you put machinery away, don’t forget to put mouse traps in the grain trucks — mice seem to love that environment.

Tiling crews are hoping the dry weather will continue for a couple of months. Markets are fun to watch, as there seems to be no pricerationing yet. The last time commodities went to higher levels, all of our inputs escalated to extreme new highs. Some consolidation here would be fine. A lot of early sales have been made. Now that the prices are higher, are we waiting for higher prices for more sales?

Todd Easton, Charleston, Coles County: With harvest in the rearview mirror for virtually everyone, the combines have retired for the year and tractors have taken over across the countryside. Fall tillage is beginning to wind down as lime and fertilizer spreaders take their turn across the field. I have been waiting in long lines at the quarry for lime as it is being hauled out as fast as they can make it. With the limited opportunity to apply lime last year, everyone is taking advantage of this early fall to catch up. Now that everyone is getting caught up, producers are anxious for conditions to allow anhydrous ammonia application, but we will need a good stretch of cool weather before we can get the toolbars out.

Ron Haase, Gilman, Iroquois County: Harvesting, fertilizer and lime applications, and tillage continued last week. Harvest is 98 percent complete. We harvested 11 percent corn out of the field.

Quite a contrast to last year when corn was 30 percent and we had not started harvesting. Although we lost some yield to overly dry corn, we were able to sell it out of the field for $5.50 per bushel. Many new records have been set over the past two crop years, which have been almost complete opposites of each other. This year, there are more fields tilled than were harvested at the same date last year.

Many fields are green with a new crop of corn or soybeans growing from the grain that was lost from the combine head during harvest.

Local closing prices for Oct. 14: nearby corn, $5.41, January corn, $5.50, fall 2011 corn, $4.74; nearby soybeans, $11.47; January soybeans, $11.82; fall 2011 soybeans, $11.08.

Jimmy Ayers, Rochester, Sangamon County: We received no rain for the week, and dry and pretty normal temperatures prevailed for the most part. Most of the crop has been harvested in the area. A lot of fieldwork has been done. Haven’t seen much ammonia being applied. I guess the most exciting part of the week has been the markets. Like I said last week, hope you are on the right side of that.

It appears to be quite a challenge this year. A lot of fun to it, but sometimes it’s a little hard to take. There was some wheat sowed this past week in the area.

Brian Schaumburg, Chenoa, McLean County: Harvest is over. Tillage is done. Waiting for cooler soil temperatures to put on NH3. Hoping that the Indiana drought does not keep pushing west and abates by spring.

Spiking prices lead us to wonder how high is too high? Corn, $5.47, January, $5.52, fall 2011, $4.69; soybeans, $11.51, January, $11.71; fall 2011, $11.03; wheat, $6.31.

Steve Ayers, Champaign, Champaign County: Just a few fields are left standing awaiting harvest as the cooperative weather continues. USDA has our crop reporting district at 98 percent corn harvested and 93 percent of the soybeans harvested, which is the fastest pace in the state. I saw a farmer quote last week on an ag website that sums up 2010: “My best corn was on my worst ground and my worst corn on my best ground!” We had 0.3 of an inch of rain as a cold front rolled through Wednesday morning. Long-range temperatures vary from 40 to 65 degrees with a chance of rain Tuesday and the weekend. Ground temperature is 62 degrees, so still too warm for fall anhydrous. Let’s be careful out there!

Wilfred Dittmer, Quincy, Adams County: Our comments this week just duplicate last week’s except that we are seeing a lot more empty fields. Harvested fields are definitely in the majority around here with not many left to meet the combine. Corn probably is at close to 90 percent complete and soybeans are dragging behind at maybe 60 to 70 percent complete.

Tillage already has begun big time, as has fertilizer application. I have even seen some anhydrous wagons moving already. Is the soil temperature cool enough yet? No rain in the gauge for the week, just dust. In fact, zero moisture for the month so far. Have a good week.

Tom Ritter, Blue Mound, Macon County: Harvest is down to the last 1 or 2 percent of corn and soybeans. Farmers overall are very pleased with yields and even more pleased with where the prices have headed. A lot of tillage has been completed. There is a lot more than normal with a lot of the bean stubble also being worked to break up compaction left from the previous year’s nightmares. No anhydrous has been applied at this time. Farmers are really pausing and catching up on cleaning up equipment and waiting for cooler temperatures before the ammonia application.

David Schaal, St. Peter, Fayette County: Another dry week here in southern Fayette County.

Harvest has pretty well wrapped up in this area other than some late-planted, replanted, or double-crop beans. A lot of fall fertilizer is being applied. Some tillage work is going on along with the waterway work and ditch cleaning. Rain would not hurt anything. Some of the wheat that has been sowed needs a shower to help it emerge. It’s pretty dry. Grain markets are back on the yo-yo. Local elevator prices are: spot soybeans, $11.50, January soybeans, $11.95; corn, $5.37, January, $5.52; wheat, $6.81.

Ted Kuebrich, Jerseyville, Jersey County: Harvest has come and gone for about half of the farmers in Jersey County, and the ones who have their crops out are doing fall tillage. It looks like there will be more wheat planted this fall than last year due to the early harvest.

Jersey County farmers had more than their share of combine fires this harvest. I heard of five catching on fire and two of them burning up. Most of the corn is out and the beans are not far behind. Prices at Jersey County Grain, Hardin: Cash corn, $5.42, January 2011 corn, $5.63; cash beans, $11.66, January 2011 beans, $12.10.

Dan Meinhart, Montrose, Jasper County: It was a very pleasant week for harvest with some light showers on Wednesday. Corn harvest is pretty well wrapped up.

Bean harvest is coming along, but most of the July-planted beans are not ready yet. Wheat sowing is mostly finished and some has emerged. Lime and fertilizer are being applied and fall tillage is being done. This coming week is expected to be good for harvest and more fieldwork.

Bob Biehl, Belleville, St. Clair County: Harvest is about wrapped up in this area. There are a few fields of beans left, both first-crop and some doublecrop. Corn is done except for an isolated field or two. Corn moisture got down to 13 percent and yields were good for our area.

The southeastern part of this county was not as good. The only bad corn yields in our area were some later-planted cornfields that encountered the cool, wet weather the first three weeks of May. Otherwise, yields were between 160-200.

Beans have been very consistent like corn.

Every field has been in a narrow range of yield.

I would say 53 to 63 bushels an acre will cover most fields. Lots of 10 percent moisture beans cut vs. 13 percent from hot weather. People are sowing wheat in some places; however, wheat is lying in dry ground. Otherwise, producers have started fertilizer and lime applications and doing some fall spraying and tillage work.

Page 7 Monday, October 18, 2010 FarmWeek

CROPWATCHERS Rick Corners, Centralia, Jefferson County: Harvest is getting down to the two-minute warning. Bean fields are disappearing fast. Yields on beans on the side of town that got rain are record breaking. Other side of town, very average. Wheat is coming up very spotty until it gets a good rain.

Kevin Raber, Browns, Wabash County: Very little rain this past week. Some places got a good shower, but I had less than 0.1 of an inch. There is some wheat trying to emerge — I don’t know how when it has been so dry. Fieldwork, spreading lime, and fertilizer, fall application of chemicals are the main activities.

There is a lot of conservation work and tiling going on — jobs farmers haven’t been able to get done the last two falls because of wet soil.

Dean Shields, Murphysboro, Jackson County: Another good week for harvesting in Jackson County. Not much corn or soybeans left in the field right now. Some of the beans that are left to be harvested are latematuring beans and those that were planted late because of the low ground. A lot of tillage work is going on and quite a bit of the wheat that was planted is now out of the ground and looking pretty decent in most places. We could use a shower for the wheat growers to get their stands up a little better. Rain has been avoiding us. We had a little shower go through, but didn’t get much out of it. Take care and have a good harvest.

Ken Taake, Ullin, Pulaski County: It was another dry week here in Pulaski County.

We had no rain and it is really getting dry. We have only had a trace of rain since the weekend of Sept. 10–11. The only good thing about the lack of rainfall is that harvest sure has been rapid. We finished our soybeans on Saturday, Oct. 9, so we are finished with harvest. We finished planting wheat this past week. This is the earliest I can remember being this far along with harvest. The main activities now are putting down dry fertilizer and lime. A lot of people have been working ground. Please remember to be careful during this busy time of year.

Reports received Friday morning.

Expanded crop information available at FarmWeekNow.com

Grain, oilseed demand projected to grow worldwide

BY DANIEL GRANT FarmWeek

The U.S. is on pace this season to produce the largest soybean crop and third-largest corn crop on record.

But current crop production capabilities, while impressive, must improve worldwide in order to meet demand for grain and oilseeds that is projected to skyrocket in the future.

Robert Thompson, consultant with the National Center for Food and Agricultural Policy and a professor emeritus at the University of Illinois where he held the Gardner endowed chair for agricultural policy, projected world food demand from 2000 to 2050 will double.

That scenario will force farmers around the world to increase yields, improve farming practices, and expand acreage if they’re going to keep pace with demand, he said.

Thompson, who delivered the keynote address at the recent Export Exchange in Chicago hosted by the Renewable Fuels Association and U.S. Grains Council, projected the world’s population from 2010 to

2050 will increase by 2.6 billion people, more than twice the size of China’s current population of about 1.2 billion people.

“The world’s farmers will be challenged to feed the equivalent of two more Chinas by the middle of this century,” Thompson Robert Thompson said.

That should put countries such as the U.S., with the ability to produce the most food, in the driver’s seat when it comes to trade.

“I see a bright, bright future for international trade, particularly for feed grain and oilseeds,” Thompson said.

China, for instance, recently re-entered the market as a corn buyer after years as a net exporter.

Thompson believes that trend will continue.

“It’s difficult to construe a scenario in which countries in Asia will be self-sufficient in food production no matter how much they invest in research and ag development,” Thompson

said. “Self-sufficiency is an inefficient way to achieve food security because it leads to misallocation of resources.”

Thompson believes the use of biotechnology is vital to improving yields and enhancing the nutritional value of crops.

“We have a long way to go to increase productivity,” he said. “We must invest more in research. The ability to deal with drought (for example) will be very important.”

In fact, Thompson envisions a gradual shift in various

crop rotations as the climate changes. He predicted farmers in the parts of the Northern Hemisphere will be able to grow more grain, but other farmers may have to adjust their mix of crops to a rotation more suitable for the climate in their region.

“The big question is what happens to precipitation,” he said.

Agriculture currently consumes about 70 percent of the fresh water used in the world. But last year for the first time, more than half the world’s population lived in cities, and Thomp-

son projected 70 percent of the world’s population will live in cities by 2050.

“If 70 percent of the people live in cities, farmers won’t have access to 70 percent of the water,” Thompson said.

He also believes farmers will have to increase the amount of acres in production. Thompson estimated about 12 percent of the world’s arable land, which currently is not in production or heavily forested, is available. Most of that ground is in South America and Sub-Saharan Africa.

Harvest nearly complete in Illinois Another week of ideal weather conditions last week allowed farmers to put much of the finishing touches on harvest.

As of the first of last week harvest in Illinois was 87 percent complete for corn, and 79 percent of the soybeans were in the bin compared to just 6 percent and 9 percent, respectively, at the same time last year.

“The 2010 harvest is coming to a close fast,” said Ron Frieders, a FarmWeek Cropwatcher from DeKalb County. “Some (farmers) are done and most are finishing up.”

Nationwide, harvest progress wasn’t as far along as it was in Illinois — 51 percent of corn and 67 percent of soybeans were harvested nationwide as last week began.

Most farmers in Illinois recently turned

their attention to fall tillage and fertilization applications.

“I have been waiting in long lines at the quarry for lime as it is being hauled out as fast as they can make it,” said Todd Easton, a Cropwatcher from Coles County.

Farmers should be able to make significant progress in the fields again this week as the forecast was mostly dry and cool conditions in the state, with a chance of scattered showers the middle of this week.

Illinois farmers as of the first of last week had seeded 56 percent of the winter wheat crop compared to 11 percent at the same time a year ago and the average of 35 percent, according to the National Agricultural Statistics Service Illinois field office.

Russia could source additional feed from U.S. Livestock producers in drought-ravaged Russia could source additional feed products from the U.S. to make up for crop losses in the Black Sea region.

Dmitry Beskurnikov, the U.S. representative for the Chamber of Commerce and Industry of the Russian Federation, this month attended the Export Exchange in Chicago to source distillers dried grains, soybean meal, and sorghum.

“The harvest (in Russia) this year was much lower than last year,” Beskurnikov

told FarmWeek. “There is potential demand for these

extreme drought this year in Russia recently were project-

‘The harvest (in Russia) this year was much lower than last year. There is p o t e n t i a l d e m a n d fo r t h e s e ( U. S. ) products.’

— Dmitry Beskurnikov U.S. representative, Chamber of Commerce and Industry of the Russian Federation

(U.S.) products.”

Crop losses due to

ed to exceed $1 billion.

Russian farmers grow a wide

range of crops but place a heavy emphasis on wheat, barley, and rye production, according to Beskurnikov.

The drought in Russia this year destroyed about 27 million acres of crops, or about 26 percent of the total harvest, according to Alexander Petrikov, Russia’s ag minister.

Prime Minister Vladimir Putin in August banned exports of feed grain from Russia, which helped trigger a run-up in U.S. corn and wheat prices.

Beskurnikov was uncer-

tain how long the feed export ban will remain in place.

“We have two harvests, winter and summer,” he said. “It (the duration of the feed export ban) depends on the outlook for the winter crops.”

Beskurnikov encouraged representatives of companies in Illinois who can export feed products to Russia to contact his Virginiabased office at 414-994-8388 or e-mail him at dbeskurnikov@gmail.com.

— Daniel Grant

FarmWeek Page 8 Monday, October 18, 2010

EVENTS

ICMB to sponsor No. 28 car for historic race at Madison

BY DANIEL GRANT FarmWeek

National Association of Stock Car Auto Racing (NASCAR) driver Kenny Wallace recently tried his hand at driving a combine this corn harvest in Illinois.

That event took place recently on the farm of Tim Seifert, an Illinois Corn Marketing Board (ICMB) District director from Auburn and a Sangamon County Farm Bureau member.

Now, Wallace will represent corn farmers from around the state in what likely will be a bittersweet NASCAR race for the St. Louis native.

The Nationwide Series event, which will be held Saturday at Gateway International Raceway in Madison, Ill., is the last NASCAR event at the St. Louis area track.

In fact, the future of the 65,000-seat track, which originally was a drag strip that

opened in 1967, is in jeopardy as the property reportedly was devalued recently from $10 million to $2.1 million.

“It’s definitely sad to see Gateway close,” Wallace said.

“The fans in Illinois and Missouri are really great.”

Wallace will run his final

‘The opportunity to wor k with Kenny Wallace racing is exciting for us.’

— Scott Stirling ICMB chairman

NASCAR race at his hometown track in the No. 28 car sponsored by ICMB. “Illinois is one of America’s top corn-producing states, and I’m extremely proud to be representing all of its hard-working corn farmers,” Wallace said.

“We’re putting a big effort into the weekend to have a good run and help share the story of the family farmers in Illinois and what corn, their

biggest crop, can do for this country.”

Wallace is the brother of NASCAR drivers Rusty and Mike.

The No. 28 car will feature a black, green, and yellow paint scheme with the words “Illinois Corn Farmers” painted on the hood, trunk, and rear quarter-panels.

“ILCORN.org” will appear below the rear spoiler to promote the ICMB website.

“The opportunity to work with Kenny Wallace Racing is exciting for us,” said Scott Stirling, ICMB chairman from Martinton. “Especially since there’s been significant interest from the racing world to incorporate ethanol into their fuel.”

The upcoming Nationwide Series event at Madison also will feature Danica Patrick, who grew up in Roscoe, just north of Rockford.

Patrick, who originally raced to stardom driving Indy cars, is a well-known national spokesperson. But she also is a talented driver who placed third in the 2009 Indianapolis 500, the highest finish by a woman in the event’s history.

NASCAR driver Kenny Wallace, right, prepares to test drive a combine owned by Tim Seifert, left, Illinois Corn Marketing Board (ICMB) District 10 director from Auburn. ICMB recently entered into a promotional partnership with Kenny Wallace Racing and will sponsor Wallace’s car at a Nationwide Series race Saturday at Gateway International Raceway in Madison, Ill. (Photo by Tricia Braid, Illinois Corn Growers Association/Marketing Board communications director)

Singles in Agriculture plans Thanksgiving dinner The Illinois chapter of Singles in Agriculture is hosting its 18th annual Thanksgiving dinner and dance Sunday, Nov. 7, in Harding in LaSalle County.

Reservation deadline is Nov. 2. The event will be at the Harding Community Center with registration from 10 a.m. to noon. A dance will follow a turkey meal.

For more information, contact Sandra at 708-534-8698 or Pam at 309-288-5061.

A PRETTY PEST?

To most farmers, milk weeds are not a welcome sight. But at Western Illinois University at Macomb, the weed has been the subject of studies designed to see if it could become a potential cash crop.

Cash crop or weed pest, the milkweeds offer a pretty picture as the heads open up to release their seeds and floss. This picture was taken east of Freeport last week. (Photo by Ken Kashian)

FarmWeek Page 9 Monday, October 18, 2010

FROM THE COUNTIES

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ACKSON — The District 18 Equine Committee will sponsor an equine seminar at 6 p.m. Tuesday, Oct. 26, at the Southern Illinois Sale Barn, Goreville.

Ron Beasley, a veterinarian, and Matt Jenkins, a farrier, will be the speakers. Admission is free. Call any Farm Bureau in District 18 for reservations or more information.

ASALLE — There are openings for the family portrait session Saturday and Sunday, Nov. 13-14, at the Farm Bureau office.

Call the Farm Bureau office at 815-433-0371 for an appointment or more information.

• Farm Bureau will have Amish country cheese available to purchase. Stop by the Farm Bureau office or visit the website {www.lasallecfb.org} for an order form. Deadline to order is Thursday, Nov. 11.

EE — Carol Schnaiter, Usborne Books, Amboy, is participating in the Lee County Farm Bureau local discount program. Farm Bureau members will receive a 10 percent discount on each order. Contact her at 815-8573717, her website at {www.carolsreadingclub.com} or the Farm Bureau office at 815-857-3531 for more information.

• Ed Morris, a Shaklee distributor, Harmon, is participating in the Lee County Farm Bureau local discount program. Farm Bureau members will receive a 10 percent discount on orders through 2011. Call him at 815-3596037 for more information.

ASSAC — The District 18 Equine Committee will sponsor an equine seminar at 6 p.m. Tuesday, Oct. 26, at the Southern Illinois Sale Barn, Goreville. Ron Beasley, a veterinarian, and Matt Jenkins, a farrier, will be the speakers. Admission is free. Call any Farm Bureau in District 18 for reservations or more information.

EORIA — The deadline for Ag Service award nominations is Tuesday, Oct. 26. A nomination form is in the October “Farmer” newsletter and in a mailing with the county annual meeting invitation.

• A Proctor Hospital health clinic will be Wednesday, Oct. 27, at the Farm Bureau auditorium. Flu, tetanus, and pneumonia vaccines will be available for members. Call the Farm Bureau office at 686-7070 for an appointment.

TARK — The Prime Timers annual Antique Road Show has been canceled due to the remodeling of the Farm Bureau office. It will return next fall.

AYNE — Hamilton, Wayne, and White County Farm Bureaus will sponsor an “On the Road” seminar at 6 p.m. Monday, Nov. 1, at St. Patrick’s Catholic Church, Enfield. A pork chop dinner will be served. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 618-842-3342

by Monday, Oct. 25, for reservations or go to the website {www.waynecfb.com} for more information.

• Farm Bureau will sponsor

Auction Calendar

Macoupin Co. Estate of Ernest Glenn Slightom, ATWAER, IL. Glenn E. Karrick, Auctioneer.

Fri., Oct. 29. 10 a.m. Land Auction Hall Co., NE. GRAND ISLAND, NE. Farmers National. www.farmersnatinoal.com Sat., Oct. 30. 6 p.m. 1,171 Ac. Lewis Co. MO. The Thom and Butch Smith Farm, QUINCY, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Sat., Oct. 30. 9 a.m. Consignment Auction. N.I.T.E. Eq., PECATONICA, IL. www.niteequip.com Sat., Oct. 30. 10:30 a.m. 116.68 Ac. Rock Island Co. Jane T. Olson, Mary L. Spohnoltz, Eileen T. Grosso, BUFFALO PRAIRIE, IL. Steve Relander Auctioneer/Farm Broker. www.relanderauctions.com Mon., Nov. 1. 10 a.m. 239.61 Ac. Woodford Co. Jones Family Farm, EL PASO, IL. Terry Wilkey Auction Service. www.terrywilkey.com Mon., Nov. 1. 10:30 a.m. 137.54 Ac. Vermilion Co. Womacks Estate, ROYAL, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Wed., Nov. 3. 960 +/- Ac. Lee Co. Soy Capital Ag Services. www.soycapitalag.com Wed., Nov. 3. 10 a.m. 40 Ac. Moultrie Co. Trust of John E. Reuss, c/o Scott State Bank Trustee, BETHANY, IL. biddersandbuyers.com-keyword-lamendola. autionzip.com-ID #5614 Wed., Nov. 3. 960 Ac. Lee Co. Soy Capital Ag Services. www.soycapitalag.com

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Wed., Oct. 20. 7 p.m. 107 Ac. Sangamon Co. Tomlin Bros., PLEASANT PLAINS, IL. Middendorf Bros.

Auctioneers and Real Estate. www.middendorfs.com Thurs., Oct. 21. 10 a.m. 73.1 Ac. Bureau Co. Martin Farm, LADD, IL. Auctioneers, Joe McConville and Marty McConville. www.mcconvillerealty.com, www.biddersandbuyers.com, auctions@mcconvillerealty.com Thurs., Oct. 21. 10 a.m. 80 Ac. Livingston Co. Robert W. Brown and Susan K. Brown et. al., Immke and Bradleys’ Auction Service. biddersandbuyers.com/immke Sat., Oct. 23. 9:30 a.m. Farm machinery and miscellaneous. Walter and Betty Stephens Estate, CONGERVILLE, IL. Schmidgall Auction Services, Inc. www.topauctions247.com/schmidgall or schmidgallauctions.com Sat., Oct. 23. 10 a.m. Farm Land Auction. Heil Farm, SIBLEY, IL. Bill Kruse, Auctioneer.

Wed., Oct. 27. 98.72 Ac. Jefferson Co. Soy Capital Ag Services. www.soycapitalag.com Thurs., Oct. 28. 6 p.m. 394 Ac. Schuyler and Adams Co. Rowland Farms, GOLDEN, IL. Sullivan Auctioneers, LLC. www.sullivanauctinoeers.com Thurs., Oct. 28. 7 p.m. 80 Ac. White Co. Wayne and Deanna Williams, GRAYVILLE, IL. Carson Auction, Realty & Appraisal Co. www.carsonauctionandrealty.com Fri., Oct. 29. 10 a.m. 117.3 Ac.

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an “Ag Contracts” seminar at 7 p.m. Tuesday, Nov. 16, at the Farm Bureau office. Laura Harmon, Illinois Farm Bureau senior counsel, will be the speaker. Items to be covered will be farm leases, utility rights-of-way, and mineral rights leases. Call the Farm Bureau office at 618-842-3342 for reservations or go to the website {www.waynecfb.com} for more information.

HITE — Hamilton, Wayne, and White County Farm Bureaus will sponsor an “On the Road” seminar at 6 p.m. Monday, Nov. 1, at St. Patrick’s Catholic Church, Enfield. A pork chop dinner will be served. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 618-382-8512

by Monday, Oct. 25, for reservations or go to the website {www.whitecfb.com} for more information.

TAKING A BREAK

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“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.

Jackson County Farm Bureau Women’s Committee member Barbara Arbeiter gives Scott Bunselmeyer, who was harvesting west of Murhphysboro, a snack and w a t e r. Wo m e n ’s C o m m i t t e e members handed out snacks and drinks to 65 farmers recently in an effort to get them to take a break and stay hydrated. (Photo by Lindsay McQueen, Jackson County Farm Bureau manager)

Cooperatives…

Working together to grow.

For over 80 years, the FS System of member cooperatives has worked together to improve the profitability of farming. Through professional people, quality products, and exceptional service, we prove that by working together we grow together.

Celebrating Co-op Month.

©2010 GROWMARK, Inc. A Farm Bureau Affiliate M12238

FarmWeek Page 10 Monday, October 18, 2010

PROFITABILITY

‘In Pursuit of Maximum Yields’ trials showing results

BY MATT HYNES Last spring, I wrote about a program launched with our FS member cooperatives called “In Pursuit of Maximum Yields.”

This proMatt Hynes gram is designed to work with our growers to approach the market differently and explore new ideas on how to raise yields.

This means taking the lead

in recommending and positioning the right hybrids and varieties and looking at new and better ways to manage nutrients and weeds, and protect the crop with fungicides, insecticides, nematicides, and biologicals.

We will look at anything that may limit yields, ranging from looking at nutrient management systems to changes in tillage.

We refer to this as the “Law of the Minimum” — certain environmental conditions, cultural practices, and nutrient concentrations are necessary

to maximize harvest yield.

Each can individually limit the potential yield of what comes out of the bag, regardless if all other conditions, cultural practices, and/or nutrient levels promote maximum yield.

It’s all about unlocking the genetic potential of what is planted.

Results of these “Maximum Yield” plots are coming in and they are exciting. One such trial, reported by Illini FS, showed the “Pursuit of Maximum Yield” treatment having a 41-bushel-per-acre advantage over the farmer’s normal practices.

Apparently, the genetic potential was more fully realized on that farm in that field with the additional inputs and/or practices.

Just imagine what else could be done to gain more yield.

We have trials that have pushed plant populations, used fungicides, different seed treatments, split N applications, and even seed enhancements, and these trials consistently outyield the “normal” grower practices.

Is this economical? We don’t know. What we are look-

ing for is maximum yield without input or practice limitations.

Once maximum yield is found, we can, by omission, try to eliminate the less effective treatments and/or practices to discover the optimum economic yield.

I encourage you to ask your crop specialist about the “In Pursuit of Maximum Yield” trials that were conducted in your area.

Matt Hynes is FS Seed sales and marketing manager. His e-mail address is mhynes@growmark.com.

Export market crucial to boost demand for DDGs

BY DANIEL GRANT FarmWeek

Growth in the production and use of distillers dried grains (DDGs), a byproduct of ethanol production, has been phenomenal the past five years.

From 2004 to 2009 U.S. pro-

FarmWeekNow.com Listen to an interview with Wendell Shauman on export demand for DDGS at FarmWeekNow.com.

duction of the high-energy livestock feed component nearly tripled from about 11 million to 30-plus million tons.

This year the Renewable Fuels Association (RFA) estimated DDGs production will

total 33.5 million tons. And that total is expected to increase as ethanol production continues to grow in the U.S. with the recent U.S. Environmental Protection Agency announcement on 15 percent ethanol.

A jump in ethanol production obviously would result in more DDGs, but it also could lead to a challenge.

“There is a feed wall for DDGs (due to limits on inclusion rates in livestock rations),” Wendell Shauman, vice chairman of the U.S. Grains Council (USGC) and an Illinois Corn Marketing Board member from Monmouth, said recently at the Export Exchange in Chicago.

“And for ethanol plants to make money, they really need to

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 $33.50-$43.32 $38.78 $46.00-$55.38 $50.53 n/a n/a This Week Last Week 17,129 26,912 *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 $64.10 $71.10 $47.43 $52.61

Change -7.00 -5.18

USDA five-state area slaughter cattle price Steers Heifers

This week $96.77 $97.03

(Thursday’s price) Prv. week Change $94.98 1.79 $94.99 2.04

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 109.78 -1.53

This week 108.25

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-160 lbs. for 120149 $/cwt., dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 10-07-10 37.9 21.9 30.7 09-30-10 26.5 31.1 37.8 Last year 25.5 18.9 24.4 Season total 107.1 407.6 200.9 Previous season total 66.1 316.9 216.6 USDA projected total 1520 1250 2100 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

get the most out of (the ethanol feedstock) as possible.”

The Export Exchange, organized by USGC and RFA, brought nearly 200 feed buyers from 33 different countries to Chicago for the event.

“We need to expand the

export market” to increase demand for DDGs, Shauman said. “And we’re still trying to develop the poultry market.”

About 39 percent of DDGs currently is used in dairy rations, 38 percent is fed to beef cattle, 15 percent is used

by the swine industry, but the poultry sector consumes only 7 percent. The remaining 1 percent is consumed by other species, according to RFA. Livestock producers in other countries have caught on to the benefits of using DDGs rather than higher-priced corn in feed rations. U.S. DDGs exports from 2005 to 2009 jumped from 1.44 million tons to 5.75 million tons. This year, the U.S. is projected to export 8-plus million tons of DDGs. “The market is just exploding,” Shauman said. “I think it’s intriguing because five or six years ago it seemed nobody knew what this stuff was.

“We’re doing feeding trials all over the world to prove to feed companies it’s an economic product to put in their mix,” Shauman said. “And they soon figure that out.”

FarmWeek Page 11 Monday, October 18, 2010

PROFITABILITY Corn Strategy

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

Corn yield may not decline The popular wisdom in the trade is that this corn crop may get smaller yet, tightening the fundamental structure even more. Traders are adhering to the adage, “small crops get smaller.”

We have looked at historical data and find that conclusion to be potentially erroneous.

Looking at years when yields, on average, ended up 95 percent of trend or less, the average yield in those years increased nearly 1 bushel from October to January.

Since 1970, there have been 13 years that fit that criteria.

Of those, we’ve chosen not to include 1970 (the corn blight year), 1974 (late plant, drought, early frost), and 1993 (the summer flood). Those years were so unusual, we thought it unfair to include them in the observations.

Of the 10 years that fit, only two had significant yield reductions in subsequent USDA reports, 1995 and 1983.

Basis charts

In the first, USDA started at trend, and in the second, it started below trend. So, it wasn’t that USDA started with somewhat optimistic expectations like it did this year.

Of the remaining years, most of the subsequent yield forecasts were at, or above, the October estimate. In two of those, 1988 and 2005, the yield estimate rose significantly from the October estimate.

The importance of this is tied to the current expectation that this crop might still be smaller than what USDA forecast on Oct. 8. That is accompanied by expectations the supply/demand forecasts could get tighter yet.

In retrospect, even USDA analysts may be thinking they started too high this year. The implied ear weight on the August report and even the September report appeared to be high given the weather the Corn Belt experienced this summer.

But that’s history; the question is, what lies ahead? Given the implied ear weight in the October report and this historical assessment, the odds of seeing a significantly smaller crop projection may be relatively small.

At the same time, one has to recognize the potential implications of high prices early in the marketing year. They have potential to diminish demand, adding to the supply left at the end of the year. We’ve also looked at world feed grain supplies, and find the supply outside of the U.S. and China is not as tight as it was three years ago.

If the combination of factors holds up, the adage “short crop, long tail” could be realized again this year. Hence, strongly consider making sales at current prices.

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Cents per bu.

2010 crop: Nothing has signaled the move up in prices has ended, but December futures are struggling at a key long-term resistance point, $5.83. The market remains vulnerable to a hard break if the trend shifts. A drop below $5.50 on December futures is a possible trigger. Use strength to wrap up sales. Hedge-toarrive (HTA) contracts for winter/spring delivery may be a good tool, but because carry has been taken out, check them against cash sales.

2011 crop: New-crop sales should have been increased to 20 percent. Current high prices could begin a demand rationing process, one that if started could extend into the new crop.

Fundamentals: At present, corn prices are being supported by the soft dollar, and ideas that production will get smaller. As noted on the accompanying article, that may not necessarily be true. Amid the talk about tight fundamentals, feed grain supplies are not as tight outside of the U.S. and China as three years ago.

Soybean Strategy 2010 crop: The persistence of good export sales is bolstering ideas of higher prices, but those can change quickly. There’s a chance we could be seeing the highest demand forecast for this crop.

Use these prices to wrap up sales. Given the lack of carry, it generally does not pay to store soybeans commercially, and there are only limited gains from farm storage.

2011 crop: You should have boosted sales to 20 percent on the latest surge. Unlike wheat and coarse grains, oilseed fundamentals are not as tight unless South America has a significant crop problem.

Fundamentals: China continues to buy soybeans at a relatively aggressive pace. We are now hearing the Chinese already are booking soybeans out of South America. They fear supply availability if there is a crop problem. Processors also are able to lock in a profitable crush margin on those distant purchases. However, if the South American crop is

good, and prices decline, there’s risk some of those purchases could be canceled.

Wheat Strategy 2010 crop: Wheat is tracing out a choppy, sideways pattern with Chicago December futures bouncing between the 50- and 20-day moving averages. Short-term downside risk should be limited as long as corn prices are supported. Use current strength to wrap up sales if you haven’t done so already. HTA contracts for winter delivery are still the best marketing tool.

2011 crop: Use rallies to

$7.60 on Chicago July 2011 futures for catch-up sales. If basis is wide compared to this past summer, consider a HTA contract.

Fundamentals: As we earlier indicated, old-crop prices appear to be following the lead of the corn market. However, the deferred months are starting to gain some upward momentum on concern about dry weather conditions throughout the Plains. It has some worried about emergence issues that could correlate into reduced yields next summer. Traders also are monitoring the struggles of the new Russian crop.

FarmWeek Page 12 Monday, October 18, 2010

PERSPECTIVES

Finding the right fit key for ag students

BIOTECHNOLOGY Farmers, the environment reaping benefits from it U.S. soybean farmers adopt biotechnology not only for production reasons but to preserve natural resources, such as water, soil, and wildlife.

Biotechnology allows us to use less tillage, helping to protect the soil from erosion. In addition, biotech varieties allow soybean farmers to apply less herbicide and pesticides than in the past.

A study conducted by the Conservation Technology Information Center (CTIC), reviews data surrounding the adoption of biotech crops in the United States. The study’s results show soil loss is reduced by 90 percent and movement of phosphorus is reduced by 70 percent when U.S. soybean farmers use no-till practices.

The use of no-till has increased significantly since the approval and adoption of the first U.S. soybean varieties improved through the use of biotechnology more than a decade ago. The soybean checkofffunded CTIC study found a 69 percent increase in no-till farming since biotech soybean varieties hit the market.

In addition to the conservation benefits, biotechnology will continue to be important because more food will be needed for the growing world population.

With biotechnology, soybean farmers have the potential to increase yields, nutritional value, and other quality attributes of U.S. soybeans in order to meet the world’s growing demand for food, feed, and fuel. Without the use of biotechnology, farmers won’t be able to feed the growing world population.

The soybean checkoff realizes that information and communication about biotech remains important, both at home and abroad. This year, our Biotechnology Initiative developed middle and high school science biotech curricula and showcased them at the National Science Teachers Convention and U.S. Agriculture in the Classroom Conference for teachers to use this school year.

In addition, the checkoff developed a short course for some college journalism students to give them insight into biotech. This unique program strives to work with these future bloggers, reporters, and newscasters to provide them with the fact-based information and sources they need to report on biotech accurately.

Another way the checkoff promotes biotech comes through a partnership with the World Food Prize. Norman Borlaug developed the World Food Prize to create the foremost international award recognizing the achievements of individuals who have advanced human development by improving the quality, quantity, or availability of food in the world.

The soybean checkoff has partnered with the World Food Prize, headquartered in Des Moines, to help in its effort to develop a new visitors center that will help increase knowledge and awareness of the importance of biotechnology.

It’s very important that we continue to work with our trading partners and communicate to them that

PHIL BRADSHAW

the safety and benefits of biotechnology have been proved for over a decade.

Many of our trading partners already have very stringent evaluation and review processes for biotech crops. Some of these evaluations may not be based on the best peer-reviewed, science-based research.

In the past, many consumers have not been able to relate to the benefits of using biotechnology. But in the near future, the potential exists for new biotech soybean varieties that produce soybeans with hearthealthy properties of high-oleic, omega-3, and stearic acid oils, just to name a few. These may be some of the first biotech crops with direct health benefits for consumers.

As the United Nations raises the awareness of the nagging problem of hunger by holding its World Food Day, and the World Food Prize recognized its laureates last week, it’s important to remember that crops improved through the use of biotechnology remain necessary to meet the demands of a growing world population.

Biotechnology allows farmers to provide affordable, high-quality, nutritious food, which benefits all income groups. In the end, we all win with biotechnology, and acceptance of biotech will be critical to feeding that growing population.

Phil Bradshaw is chairman of the United Soybean Board (USB), which administers the soybean checkoff program at the national level. He and his family grow soybeans, corn, and wheat and raise swine on their farm near Griggsville. Bradshaw has served on USB for six years. For more information about biotechnology, go online to {www.unitedsoybean.org}.

Editor’s note: Illinois State University will mark its agriculture department’s 100th anniversary in 2011. As part of the centennial, FarmWeek will publish information about the agriculture program and its students.

It is an exciting time to be entering the agricultural department at Illinois State University. The 100th anniversary of the department in 2011 is quickly approaching!

Last year I had the opportunity to serve as the 2009-2010 Illinois State FFA president. My year of service allowed me to travel the state, as well as the country, and to see the many universities that offer agricultural courses.

I’ve made Illinois State my home for the coming years for multiple reasons. ISU is a small university with big opportunities. I felt I was a name not a number in the agriculture department, as well as in my general education courses.

The opportunities for a freshman may oftentimes be limited AMIE because of seniority, but at Illinois BURKE State I already have had numerous opportunities.

These include joining the Collegiate FFA/Post-secondary Agricultural Student (PAS) organization, serving as an ag ambassador recruiting for the department, being a member of the ag department homecoming planning committee for next year’s celebration, and developing a poster used for a recent media day at the ISU farm.

I am already receiving the vital hands-on experience that I can later apply in a future career. In Bloomington-Normal, there are numerous agricultural opportunities to become involved with companies and future employers.

While becoming involved in the agriculture department was high on my priority list, completing general education courses also needed my attention. Going to a lecture for the first time was not intimidating, despite the fact that my largest lecture class consists of 300 students twice a week. On the third day of the course, we were divided into groups of 25 students for a lab.

Yes, the lecture hall had a high population, but the lab time allowed for one-on-one attention and made a more comfortable learning environment.

In hard economic times when budgets are tight, some people may believe there should not be four universities in the State of Illinois that offer agriculture. I believe that viewpoint should be challenged.

Agriculture is the No. 1 employer in Illinois.

Preparing future minds to take on the positions in agriculture is vital to meeting the demands of a growing world. Each university offers its own character, as well as specialties.

While college hunting, I maintained the mindset of choosing what was right for me. I cannot stress the importance of each student making that decision for himself or herself. The first day of classes I was walking across the quad and knew I was in the right place!

Amie Burke, Fithian, is a freshman agriculture student at Illinois State University. She is studying agricultural communications/leadership.