FarmWeek Oct. 25 2010

AN AUNT SHARES a painful account of her family’s tragedy in the hope of raising awareness of the need for bin safety and training. ......2

BIODIESEL ADVOCATES question how far biodiesel can go without federal tax support for expanded biodiesel production. .......4

CATTLE FEEDERS in Illinois and England face similar challenges, but the British farmers also must deal with more red tape. .......5

Monday, October 25, 2010

Three sections Volume 38, No. 43

Land use change charges overblown?

Administration backs biofuels, questions credit

BY MARTIN ROSS FarmWeek

New studies confirm the potential economic benefits of corn ethanol and challenge its purported environmental costs.

However, a new USDA report questions the economic justification of the soon-toexpire ethanol blenders tax credit seen by many as a key for biofuels development.

In announcing several administration renewable fuels measures last week, Ag Secretary Tom Vilsack called biofuels production “a national imperative” that contributes to energy independence, greenhouse gas reductions,

job creation, and “a stronger foundation for the 21st century economy.”

The federal renewable fuels standard (RFS2) requires 36 billion gallons of annual biofuels use through 2022. If biofuels production advances with “cost-reducing technology” and oil prices continue to rise, the RFS2 could provide benefits that include higher wages, increased household income, and lower overall import prices and higher export value, a new USDA Economic Research Service (ERS) report concludes.

But ERS argued the level of economic benefits depends “importantly” on future oil

prices and whether biofuels tax credits are retained through 2022.

In what a National Corn Growers Association (NCGA) spokesman Friday termed a “mixed bag” report, the agency suggested that if oil prices stabilized or declined from current levels and ethanol tax credits were retained, benefits to the economy would decline.

The report comes as the industry lobbies Congress to extend the 45-cent-per-gallon blenders credit, which expires Dec. 31. University of Illinois and Iowa economists are exploring possible advantages of a variable-rate credit that

would fluctuate with oil prices or fuel blender cost margins.

The national Renewable Fuels Association, the biofuels industry group Growth Energy, and NCGA have united to promote “the best steps forward for the ethanol industry,” GE President Tom Buis told FarmWeek.

They face opposition from interests including the American Meat Institute (AMI), the Grocery Manufacturers Association, and the environmentalist Friends of the Earth, and Buis is concerned about prospects for credit extension in a postelection “lame duck” session.

“Sometimes, lame ducks cre-

ate mad ducks: We don’t know how well everyone’s going to work together,” he said.

Meanwhile, researchers at the U.S. Department of Energy (DOE) Oak Ridge National Laboratory last week concluded indirect land use change resulting from expanded corn ethanol production over the past decade likely has been “minimal to zero.” They estimated 85 percent of the feedstock used for ethanol expansion was derived from U.S. supply reallocations, with higher corn yields contributing another 6 percent.

See Biofuels, page 4

E15 labeling key issue as industry gears up

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In today’s risk-averse consumer environment, a thin piece of adhesive-backed paper sometimes can be all that stands between market growth and industry liability.

Ethanol manufacturers and grower-suppliers thus are carefully monitoring federal pump labeling proposals as they continue the painstaking task of helping prepare state agencies, fuel blenders, suppli-

ers, and users for E15 (15 percent ethanol gasoline).

The U.S. Environmental Protection Agency (EPA) has approved use of blends up to 15 percent in conventional 2007 and newer model cars and light trucks.

EPA is expected to rule on E15 use in 20012006 modelyear vehicles after U.S. Department of Energy (DOE) testing is completed in November.

Biofuels group Growth Energy President Tom Buis pushed for further testing in older “legacy” vehicles, but hailed “the first crack in the blend wall in 33 years.”

He hopes EPA by year’s end will clear E15 use in “at least 55 percent of all the vehicles in America,” though many hurdles must be cleared before it hits the market (see page 4).

One of those is development of a retail label to advise motorists of E15’s proper use.

While further automotive studies are still under review,

EPA’s proposed label (pictured below) warns E15 use might damage vehicles other than 2007 and new models, and emphasizes federal restrictions against use in unapproved models and engines.

EPA is soliciting comments on labeling rules. Given EPA’s dualtiered, “bifurcated” E15 ruling, Buis recognizes labeling as important to protecting retailers in the event of any legal claim related to misfueling of older vehicles.

But Illinois Corn Growers Association market specialist Dave Loos stressed the need to ensure pumps bear “an informational label, not a warning label” that could cause consumer worries.

“I think a lot of retailers are making assumptions about liability that may or may not occur,” Buis told FarmWeek.

“EPA has indicated retailers won’t have liability for misfueling if they put the label on the pump and the label is enforced.

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“Maybe some of these fears will go away. I think we can get these things sorted out. But you don’t want a big bright orange label that says, ‘Caution,’ that discourages consumers. You want it to be factual.”

He noted successful marketing of both high- and low-

sulfur diesel blends under federal regulations, arguing EPA and retailers “have experience in this bifurcation.” Buis cites biodiesel labeling — “a lot more neutral and less threatening to consumers” than EPA’s proposed E15 design — as a model for new pump information. — Martin Ross

TIS THE SEASON

Three-year-old Cody Long points to his next possible pumpkin selection as his mother, Sara Long of Moline, left, and his grandmother, Mary Anne Sherman of Davenport, Iowa, look on. They were making selections during a visit to Country Corner Farm Market and Pumpkin Patch near Alpha. Fall events for the business, owned by Bruce Curry, are listed on the website {country-corner.com}. (Photo

by Ken Kashian)

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

FarmWeek Page 2 Monday, October 25, 2010

AG SAFETY

Quick Takes YEAR BETTER THAN EXPECTED — GROWMARK officials reported audited financial results for the fiscal year that ended Aug. 31 were better than the estimated figures reported at the cooperative’s annual meeting in August.

Senior Vice President of Finance Jeff Solberg announced sales of $6.1 billion for the 2009-2010 fiscal year. GROWMARK’s net income was $99 million.

Preliminary figures were $6 billion in sales and $81 in net income.

Patronage refunds in the amount of $70 million will be returned to GROWMARK member owners in the plant food, crop protection, seed, energy, facility planning and supply, and retail supplies business units. The patronage refund originally was estimated at $55 million.

GROWMARK is a regional cooperative providing agriculture-related products and services, as well as grain marketing, in 23 states and Ontario, Canada.

FIRM RETOOLING FOR WIND, RAIL INDUSTRIES — Illinois is continuing to grow the manufacturing side of its wind and rail industries.

Last week, Gov. Pat Quinn reported Funks Linko, a Chicago Heights manufacturer, is using a $5 million federal grant to retool its steel mill equipment to make wind turbine components and low-emission, highspeed and freight rail locomotives. The funding is being provided through the state’s Green Industry Business Development Program.

Funk Linko and its partners, Microtech Machine Co. and the National Railway Equipment Corp., expect to create 250 new jobs by February 2012.

PREFERRED PRODUCTS — Ag Secretary Tom Vilsack has announced the designation of eight additional biobased product categories that are eligible for preference in federal procurements. This means more than 600 added products will be offered for preferred purchasing consideration by all federal government agencies and contractors.

According to Vilsack, the designation is part of an ongoing effort to increase the use of ag commodities to make renewable, sustainable, biobased products that will enhance rural economic opportunities. Including previously designated items, there are now more than 5,100 products that qualify for preferred procurement under USDA’s BioPreferred program.

The new product categories include disposable tableware, expanded polystyrene (EPS) foam recycling products, heat transfer fluids, ink removers and cleaners, mulch and compost materials, multipurpose lubricants, topical pain relief products, and turbine drip oils.

(ISSN0197-6680) Vol. 38 No. 43 October 25, 2010 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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‘Emotion’ missing factor in grain safety efforts?

BY MARTIN ROSS FarmWeek

Some of the state’s brightest and best-trained people have studied the risks and the means to minimize them.

A wide range of agencies and organizations has focused on key safety issues and farm training, and ag media have intensified safety awareness efforts.

A growing pool of resources and funding are available to growers and elevators.

So why have grain-related tragedies continued to appear in rural headlines this season?

What’s missing?

Maybe the emotion, an Illinois Farm Bureauhosted Grain Safety Coalition suggests.

Catherine Rylatt knows too well the loss associated with grain bin fatalities: Her 19-year-old nephew, Alex Pacas, died in July at Mt. Carroll while working unsuccessfully to free 14-year-old Wyatt Whitebread from stored corn, leaving behind six younger siblings.

Rylatt was instrumental in bringing industry, government, and university experts to Bloomington recently to examine issues related to entrapment, falls, electrocution, and other grain-handling hazards.

She and other coalition members agreed on the need for “more impactful training” tapping personal experiences and images that convey risks and inject emotion into the process.

Rylatt herself shares a harrowing, painful account of her family’s tragedy in the hope of raising awareness of the need for bin safety and training.

On his second day on the job at Haasbach LLC on the southwest edge of Mt. Carroll, Alex and 20-year-old survivor Will Piper responded after Whitebread became engulfed in a 500,000bushel bin. However, the two would-be rescuers also fell into the bin, and Alex became trapped.

In a roughly 12-hour operation, rescuers,

including more than two dozen firefighters, cut holes in the bin to drain thousands of bushels of corn and free the trio.

“Will had his hands free and was trying to brush the corn out of Alex’s face,” Rylatt related.

“Any time anybody moved, it was like quicksand: They sank lower. They couldn’t find Wyatt; Will couldn’t keep the corn out of Alex’s face.

“That’s what people don’t understand — exactly what happens. Those boys knew they weren’t going to come out of there alive. My nephew was trying to earn money for college — he wasn’t a farm kid; he wasn’t a farm employee.

He didn’t know what the hazards were. He didn’t know what he should or should not be doing.”

The U.S. Occupational Safety and Health Administration deemed the mishap preventable: The three workers were not using safety harnesses or lifelines, and Whitebread was under the legal age limit to be working in the bin.

Coalition participants agreed to the need to target small employers for safety information and training and heightening efforts to “get people to realize they need the training.”

The Champaign-based Illinois Fire Service Institute (IFSI) helps train rural emergency workers and volunteers in ag safety and accident response. IFSI ag program director Dave Newcomb sees a “general level of complacency” toward bin safety in the ag community, but especially among children and teens who perceive themselves as “invincible.”

Rylatt stressed the importance of educating youth not only in on-farm and elevator safety but also in employment practices in general.

“Kids want to go out and make money at that age,” she said. “They aren’t going to ask questions; they’re not going to ask, ‘What are the safety risks and what do I need?’

“When you’re in an employee-employer situation, the employer has to be and should be the one who sets that standard for safety and who ensures it’s complied with,” she said.

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 Advertising Sales Manager

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Nan Fannin Director of News and Communications

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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

Above: Students from the University of IllinoisRockford’s Rural Medical Education and Rural Pharmacy Programs look on as emergency responders attend to the “victim” of a simulated tractor rollover accident during the recent 2010 No Harm on the Farm ag safety demonstration event at Freeport. Scheidair y Farms owners Doug and Dan Scheider hosted the event. At left, emergency personnel load the victim into an OSF St. Anthony Medical center trauma helicopter for transport. (Photos by Ken Kashian)

FarmWeek Page 3 Monday, October 25, 2010

AROUND ILLINOIS

U of I, SIU cooperating in tight funding times

BY KAY SHIPMAN FarmWeek

Necessity — and a tough state budget — have prompted a win-win working arrangement between the University of Illinois’ Center for Advanced BioEnergy Research (CABER) and Southern Illinois University’s National Corn-toEthanol Research Center (NCERC).

For the last year, the two centers have agreed that technology developed at the U of I will be tested at SIU’s NCERC in Edwardsville.

Ideally, the U of I would have tested those technologies in its own Integrated Bioprocessing Research Laboratory (IBRL), but that facility hasn’t been built because of state budget problems.

“The idea was to provide an avenue to allow technologies developed at the U of I, and that would have gone through IBRL, to further serve NCERC,” Hans Blaschek, CABER director, told FarmWeek.

NCERC finds itself “adapting even with these uncertain times,” said John Caupert, NCERC director.

Caupert noted NCERC through its agreement with the U of I is involved with different types of technology, including corn fractionation.

For example in May, Tetra Vitae Bioscience, based in Chicago, tested its biobutanol technology at NCERC. Its process, developed at the U of I, would convert ethanol plants to produce biobutanol.

“We’re seguing into the future,” Caupert said.

NCERC has started to offer commercialtype services to the renewable fuels industry and has found its financial footing.

In the last several years, NCERC has gone from depending primarily on state dollars to depending primarily on industry for its funding.

In October 2006, state dollars comprised 90 percent of NCERC’s budget. Now, 93 percent of its budget comes from non-state funding sources, Caupert noted.

While the arrangement between the two universities is beneficial, Blaschek noted the IBRL would have moved technology more quickly from the lab scale to the pilot-plant scale. The IBRL is a natural fit for testing between a laboratory bench and NCERC’s pilot plant, he explained.

“For Tetra Vitae, IBRL would have shaved two years off the (demonstration) process. All that (testing) infrastructure had to be developed, and it wasn’t available,” Blaschek said.

Commodity groups donate pork to food banks

BY DANIEL GRANT FarmWeek

Some of Illinois’ hungry citizens soon can enjoy an excellent source of protein — ground pork — thanks to a recent donation from commodity groups in the state.

The Illinois Pork Producers Association (IPPA), the Illinois Corn Marketing Board, the Illinois Soybean Association, and the Illinois Association of Meat Processors last week donated 42,000 pounds of pork that will be dispersed to eight food banks in the state that are associated with Feeding Illinois.

The donation was made through the Pork Power program, which was launched in 2008 by IPPA. “The Pork Power program’s

goal is to help fight hunger in Illinois,” said Dereke Dunkirk, IPPA vice president/treasurer and a pork producer from Morrisonville.

“Everything (produced through the program) is local and the food stays local.”

Pork Power allows farmers in Illinois to donate a live hog to the needy.

It is processed locally and the meat is distributed to food banks in the state.

The program so far has distributed 200,000 pounds of pork, which is enough for more than 800,000 meals.

Pork Power also contributes cash donations to local food banks.

“We’re trying to do something to help out our neighbors,” Dunkirk said. “We

couldn’t pull it off without our (program) partners.”

Feeding Illinois, a hungerrelief organization, each year serves about 1.4 million Illinoisans. About 42 percent of those in need of food are children under the age of 18.

Last year, Feeding Illinois increased the amount of food it delivered in the state by 29 percent to help meet increased demand due to the economic recession and higher unemployment.

“There probably is more urgency the last few years to help support local food banks” because of economic struggles, Dunkirk said.

The most recent Pork Power donation will provide more than 21,800 servings of protein to Illinois citizens.

Compost workshop to cover info for livestock, horses A free compost workshop will be from 9 a.m. to 1:30 p.m. Thursday, Nov. 4, in the University of Illinois Extension Building 30 on the Illinois State Fairgrounds, Springfield.

The workshop is offered by the Illinois Department of

Agriculture (IDOA), the U of I Extension, and Illinois State University (ISU). Workshop participants also will tour the composting facility on the fairgrounds.

Session topics will include: an overview of the composting process, composting tips,

Election calendar Oct. 28 Last day for early voting

Nov. 2 Election Day

matching manure sources with compost producers, state compost regulations and permits, compost uses, and backyard composting.

Information will be offered for livestock producers and horse stable owners along with landscape waste compost operators.

For more information, contact Paul Walker with ISU at 309-438-3881; Mike Rahe with IDOA at mrahe@agri.state.il.us; Jennifer Fishburn with U of I Extension at fishburn@illinois.edu; or Randy Fonner with U of I Extension at refonner@illinois.edu.

Each color block represents a multi-county Extension group. There are 26 groups throughout the state and a single county office in Cook County.

Extension announces multi-county directors The University of Illinois Extension has announced new county directors for most of the restructured multi-county Extension groups.

Twenty-four county director positions have been filled.

However, three positions remain open, and a search committee will consider additional candidates, according to Bob Hoeft, interim associate dean for Extension and Outreach.

New directors will start in their multi-county positions Nov. 1. Cook County remains a single entity.

The multi-county unit directors and their groups are: Margaret Larson, Jo Daviess/Stephenson/Winneba go; Vicky Broos, Boone/DeKalb/Ogle; and James Reaves, Lake/McHenry; Joe Schwamberger, Carroll/Lee/Whiteside; Sandra Davis, DuPage/Kane/Kendall; and Willene Buffett, Cook; Tony Franklin, Henry /Mercer/Stark/Rock Island; Jill Guynn, Bureau/LaSalle/ Marshall/Putnam; Beth LaPlante: Grundy/Kankakee/ Will; and Lisa Fulkerson, Henderson/Knox/McDonough/ Warren;

Earl Allen, Fulton/Mason/ Peoria/Tazewell; Cynthia Baer, Livingston/McLean/Woodford; and Ginger Boas, Champaign/Ford/Iroquois/ Vermilion; Aaron Dufelmeier, Calhoun/Cass/Greene/Morgan/S cott; John Fulton, Logan/Menard/Sangamon; Doug Harlan, DeWitt/ Macon/Piatt; and Denise Kistner, Christian/Jersey/ Macoupin/Montgomery; Jim Looft, Coles/Cumberland/Moultrie/Douglas/Shelby; Stacy Larson, Clark/Crawford/Edgar; Rachelle Hollinshead, Clay/Effingham/Fayette/Jasper; Pam Jacobs, Madison/St. Clair/Monroe; Joel Brumley, Edwards/Lawrence/Richland/Wabash; Julie Mumbower, Franklin/Jackson/Perry/Randolph/Williams on; and Jody Johnson, Alexander/Johnson/Massac/Pulaski/ Union.

Positions are vacant in the three clusters of Adams/ Brown/Hancock/Pike/Schuyl er; Bond/Clinton/Jefferson/Marion/Washington; and Gallatin/Hamilton/Hardin/ Pope/Saline/Wayne/White.

FarmWeek Page 4 Monday, October 25, 2010

ENERGY

Can U.S. diesel use power up without credit?

BY MARTIN ROSS FarmWeek

Amid growing fuel efficiency and green energy pressures, a new industry study anticipates a major ramp-up in U.S. “clean diesel” use.

But biodiesel advocates question how far diesel can go on American roads without biodiesel power — and federal tax support for expanded biodiesel production.

With the U.S. moving toward stronger environmental and fuel economy standards and expanded renewable fuels use,

FarmWeekNow.com See links to automakers’ diesel vehicle websites at FarmWeekNow.com.

clean diesel fuel is “poised to take on an even greater role in the U.S. transportation market,” according to a new report released by the national Diesel Technology Forum.

The study’s author, the international firm Hart Energy Consulting, sees diesel as “a leading fuel of the future,” due to its energy density relative to gasoline, low sulfur content, and “compatibility with biofuels.”

National Biodiesel Board (NBB) spokesman Michael Frohlich argues biodiesel-fueled diesel vehicles offer “a perfect balance” of fuel efficiency and

automotive emissions reductions.

Biodiesel is the only commercially produced “advanced biofuel” designated under the federal renewable fuels standard (RFS2) — essentially, “the only game in town” for clean diesel manufacturers and users, he said. Further, biodiesel contributes engine lubricity in the absence of diesel sulfur under federal clean air rules.

But while the RFS2 requires 800 million gallons of U.S. biodiesel use in 2011, production capacity has stagnated since expiration of the $1-pergallon biodiesel blenders tax credit last January. A post-election “lame duck” vote is seen as the last shot to retroactively extend the credit for 2010.

“Right now, demand is kind of teetering at best, due to the uncertainty in the market because of the lack of the biodiesel tax credit,” Frohlich told FarmWeek.

“We’ve seen a resurgence in clean diesel with BMW, Mercedes, Volkswagen, and Ford with its new Ford F-250 (pickup). These are all capable of using up to a B20 (20 percent biodiesel) blend. You’re seeing that kind of increased demand in terms of products and possible uses, but the uncertainty in the marketplace is the killer at the moment — it’s put the brakes on any real progress.”

He hopes increased focus on

clean diesel and biodiesel’s “positive benefits” will spur renewed congressional support for credit extension. Frohlich suggests the course of lame duck debate will rely on the outcome of November’s mid-term elections, but notes Senate Finance Committee Chairman Max Baucus (D-Mont.) is not up for re-election this year and fellow biofuels ally and committee minority leader Charles Grass-

ley (R-Iowa) appears to have his race “in hand.”

Beyond getting a new tax measure on the lame duck docket, biodiesel supporters could be called upon to find budget offsets to pay the “costs” of the blenders credit and other tax proposals.

NBB board member Darryl Brinkmann was among the first to drive the Jeep Liberty, an SUV introduced in 2002 with biodiesel

use in mind. As more light-duty diesel vehicles enter the market, the Carlyle producer and Illinois Farm Bureau state director feels biodiesel can help allay negative consumer preconceptions.

“Most people have an idea of what a diesel engine is — it’s in a truck, and it’s dirty,” Brinkmann said. “But the technology has changed dramatically over the years, and biodiesel is actually cleaner than people can imagine.”

Pumping up E15: The next steps E15 won’t appear at a gas station tomorrow. But that’s OK, an ethanol industry spokesman assured FarmWeek.

A number of regulatory steps lie ahead before 15 percent blends can be sold for later-model cars and trucks. In the interim, the U.S. Environmental Protection Agency (EPA) will evaluate potential extension of its new E15 waiver for vehicles produced prior to 2007.

“We don’t anticipate any fuel going into commerce until that second decision,” Growth Energy (GE) president Tom Buis said.

“It’s a long, involved process.

But you have to keep in mind, it took 30-some years to get market saturation with E10. We don’t think it’s going to take near that long here.

“Ultimately, what’s going to drive E15 use is the marketplace.

If it’s advantageous for retailers to put E15 in because it’s cheaper (than gasoline or lowerethanol blends), they’re going to adopt it.”

The ethanol industry’s two major groups — GE and the Renewable Fuels Association — are helping prep “health effects” test data regarding the safety of E15 fuel compounds and emissions vs. those in existing E10 gasoline.

Illinois Corn Growers Association market/regulatory specialist Dave Loos does not see “anything to be concerned about there,” but health impact evaluation is a necessary step in the federal E15 fuel registration process.

Further, groups are working with the roughly 60 percent of states that currently prohibit sale of blends other than E10 or E85

for flexible-fuel vehicles.

Illinois’ two federal pollution “non-attainment” areas — Chicago and St. Louis — are required to use reformulated gasoline; the industry must consult the Illinois EPA about any needed changes in implementation plans for those areas. Non-attainment areas already have federal waivers for 9 to 10 percent ethanol fuels, but with E15 approval, waivers must be extended.

“Then we have some issues with compatibility at the retail level,” Loos noted. “UL (safety certification lab) has certified new (fuel) equipment for E15.

We want to make sure older equipment is grandfathered in or there are easy fixes to make sure they’re compatible with E15.” — Martin Ross

USDA’s plan bolsters BCAP USDA last week released measures designed to push the next generation of ethanol.

Ag Secretary Tom Vilsack announced final rules for the 2008 farm bill’s Biomass Crop Assistance Program (BCAP). Under the rule, USDA will resume making payments to eligible producers of new energy crop feedstocks — BCAP had operated as a pilot, pending publication of the final rule.

BCAP is designed to ensure a base of new, non-food, non-feed biomass crops in anticipation of future demand for renewable energy. Producers who enter into BCAP contracts may receive payments of up to 75 percent of the cost of establishing eligible perennial crops and payments for up to five years for annual or non-woody perennial crops or 15 years for woody perennial crops.

USDA’s Farm Service Agency (FSA) is accepting biomass project area proposals; after proposals are OK’d, eligible growers may enroll at FSA county offices. BCAP will provide matching payments for transportation of eligible materials sold to qualified biomass-to-fuel conversion facilities.

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Continued from page 1 DOE scientists saw no evidence to indicate expansion had any significant effect on U.S. commodity exports or cropland expansion.

The land use issue centers on speculation that corn production for energy subtracts from food corn supplies and spurs production in other countries, threatening sensitive lands and boosting greenhouse gas emissions. Citing high October corn prices, AMI President Patrick Boyle argued “America’s vast fuel needs cannot be met with food resources.”

Buis called the “food vs. fuel” issue “the biggest lie I’ve ever heard in Washington.”

“It was created by big food companies that wanted to avoid the spotlight because they were raising food prices and blaming it on farmers and corn ethanol,” he said. “That lie’s been disproved, but they’re trying it again.

“If you look at what’s happened in the commodity markets, it’s not based on market fundamentals — it’s based on excessive, unregulated speculation by non-commercial (grain) users, triggered by the Russian wheat shortage. We know there’s not a shortage of wheat worldwide; we know there’s not a shortage of corn.”

FarmWeek Page 5 Monday, October 25, 2010

EMERGING ISSUES

English, American cattle producers share challenges

BY KAY SHIPMAN FarmWeek

Cattle feeders in Illinois and England face some similar challenges, but the British farmers also must deal with more red tape.

At least one Central Illinois farmer said he wasn’t interested in changing places with his British counterparts.

“I thought I had to do a lot (of paperwork), I guess it’s a picnic compared to what you have to do,” said Ralph Freebairn, a LaSalle County Farm Bureau member and cattleman from Ottawa.

Last week Freebairn and Albert Borell Jr., a Lee County Farm Bureau member and cattleman from Amboy, discussed their operations and the American beef industry with a group of English cattle feeders and beef processor representatives.

Di Lethbridge farms about 800 acres in Lincolnshire and feeds 800 head of cattle. She noted U.S. farmers have an advantage in their ability to use hormone implants that are not allowed in English cattle.

“There’s lots and lots of red tape,” Lethbridge said.

“We have got to have two ear tags (per animal), one with the herd number and one with the animal number.”

In addition, each animal has its own “passport,” a book that tracks its location and movements from birth to slaughter and always accompanies the animal, Lethbridge explained.

However, the animal passports are only one part of their challenge, according to the English farmers. They also must have industry accreditations and go through annual inspections for animal health, welfare, and transportation criteria, as well as meeting feed and environmental requirements. Farmers who aren’t accredited are penalized.

The group of English farmers also meets specific requirements of Dovecote Park, a West Yorks beef processor that supplies 95 percent of the beef to one of England’s upscale supermarkets.

“The supply chain is very important. We work with the producers to provide the right

LaSalle County Farm Bureau member Ralph Freebairn of Ottawa, left, discusses his cattle feeding operation with Mark Green, a cattle feeder from York in central England. Last week, Green and several English cattle producers along with representatives of an English beef processor toured Midwestern cattle feeding operations, including two in Illinois.

(Photo by Kay Shipman)

type of cattle,” said Simon Ingle, who procures cattle for Dovecote.

Although English farmers follow their country’s stricter standards, Ingle noted cattle producers on both sides of the

Menard County Farm Bureau President Terry Entwistle chats with state Rep. Camille Lilly (D-Chicago) during her recent visit to his Petersburg farm. Lilly toured several farms while visiting her “adopted” county Farm Bureau. (Photo by Dee Dee Gellerman, Menard County Farm Bureau manager)

‘Adopted’ lawmaker gains new rural life experiences A recent tour of Menard County farms and a grain elevator gave “adopted” state Rep. Camille Lilly (D-Chicago) and other Chicago visitors a better understanding of Central Illinois agriculture and a flavor of rural life.

“Representative Lilly and her staff enjoyed their day in the country and stated the visit was not only educational but a great opportunity to experience a new part of the state and appreciate rural life,” said Christina Nourie, Illinois Farm Bureau northeast legislative coordinator.

Lilly enjoyed the trip so much she is considering bringing more family and friends to Petersburg next year to tour some agricultural sites and see area attractions, Nourie added.

Lilly had hosted a Menard County Farm Bureau delegation on a tour of her Chicago district earlier in the year.

Lilly was accompanied by Wanda Hill, a legislative aide; Glenda Bridges, a constituent liaison; and DeAndre Robinson, a Chicago high school senior and volunteer for an urban agricultural organization.

The group was accompanied

by Menard County Farm Bureau President Terry Entwistle and Farm Bureau manager Dee Dee Gellerman, Petersburg PORTA High School student Nicholas Paulsmeyer, and Nourie.

The group visited the PORTA High School agriculture classroom where Lilly and the ag teachers discussed the importance of state funding for ag education.

Then they toured the LincolnLand FS elevator in Atterberry, where the visitors learned not only about grain elevators but also about the grain industry and the role of markets.

They learned about the variety of the county’s agriculture during a visit to the familyowned and operated Hill Prairie Winery, near Oakford.

Animal care, the livestock industry, and legislative concerns were discussed during a visit to Entwistle’s cattle operation, near Petersburg. Combine rides and an overview of corn and soybean production were the highlights of a visit to the David and John Leischner grain farm, also near Petersburg.

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

Atlantic share common concerns: “The smaller (English) guys are facing similar challenges with feed and land prices, competition with the big boys. It’s really quite similar,” he said.

FarmWeek Page 6 Monday, October 25, 2010

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Harvest continued at full speed here in Northern Illinois last week with more of the same ideal harvest weather. Ninety-nine percent of the soybeans are now harvested and the corn is about 75 percent harvested. Long lines at the elevators and ethanol plants, and early closing of those elevators have slowed the finish of corn harvest.

Yields are still very good and moisture is from 13 to 15 percent. Have a good week and stay safe.

Pete Tekampe, Grayslake, Lake County: A beautiful week in Lake County. Corn is about 80 percent picked. Most of the corn was in the low teens with above average yields. Beans are mostly cut with just some replant and late planted left to cut. Yields were above average. I’ve never had this much harvested by mid-October.

Winter wheat is sprouting but needs moisture. They were calling for rain during the weekend.

Leroy Getz, Savanna, Carroll County: Another dry week.

We’ve had no rain in October.

Harvest for most producers is coming to an end. Dry fertilizer and lime are being applied and spread. Soil temperatures in the 50-degree range are too warm for applying anhydrous ammonia, but some are starting anyway. Be careful how you apply this. Pastures are very dry and supplemental feeding is needed.

Larry Hummel, Dixon, Lee County: Selling soybeans above $9 per bushel back in March sure was fun, but then again, so is selling them for $10, $11, and $12 since then. At what price do I sell next? $13 would be the next logical step, but we haven’t had any rain for the last month. If we roll into the next season smack dab in the middle of a drought, $13 will probably look like chump change. On the other hand, I don’t want to be the proverbial hog that always gets slaughtered. Harvest is on the downhill slide.

Soybeans are pretty much wrapped up, and there won’t be many cornfields left by the end of the week.

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

We finished harvest Monday (Oct. 18) down in Henderson County in the Route 34 corridor that had maybe 20 more inches of rain than here at home.

Neighbors had the same story as everywhere, pleasantly surprised by beans and disappointed with corn yields. Tillage and tiling are the main activities now. The custom anhydrous ammonia applicators are getting started, but we could really stand a rain to soften up and cool the ground.

Ron Moore, Roseville, Warren County: No rain to report last week. That makes almost three weeks since the last measurable rain. We are done with harvest and also cleaning the cattle pits. Last year it was December before I could report that. There are lots of fertilizer and lime being applied now. We are doing some deep tillage as well to break up the compaction that we created last fall.

Now we will start the planning process for next year.

Tim Green, Wyoming, Stark County: Harvest is pretty well complete around here. There are a few fields of corn and beans around, but in general things are pretty well done. A lot of fall tillage is being completed.

A little bit of anhydrous is going on, but most people are sitting back and waiting. We really need rain as the ground is really dry. A nice inch and a half would really be appreciated.

Yields seem to be 25 to 30 bushels below a year ago on average. There was some good corn here and there, but there was some bad corn more often than not. Corn-on-corn took it a little hard, but next year maybe it will be different.

Mark Kerber, Chatsworth, Livingston County: Another nice week as the possibility of some welcome rain is on the way.

There is no more crop to watch, as it is either sold or in the bin.

Farm activities include mowing roads. I’ve never seen so many roads mowed in October. Fall tillage is getting wrapped up, giving us a good start for next year. Many are ready to put anhydrous on, but waiting for a little rain, as it needs moisture to attach. We have been fixing tile and reworking waterways, as it is very dry to dig. A shovel doesn’t work very well. Markets are very volatile. My neighbor says, $5.50 corn and $12 beans are pretty good, but he thinks they are going higher, yet he doesn’t want to miss these prices.

Ron Haase, Gilman, Iroquois County: The dry weather continued and so did the completion of harvest, the progress of tillage operations, and the spreading of lime and fertilizer. Virtually all of the crops have been harvested and 70 percent of the tillage has been completed. Thursday, I was testing out the capabilities of our tractor by letting it perform all the operations needed to drive through the field, turn around, and raise and lower the implement on the ends. All I had to do was sit in the tractor and watch. I was left to wonder what the future advances in agriculture await our three sons, ages 4 months to 5 years old. When my father was a boy, horses were working the field and he had to shuck corn by hand.

Technology is amazing! The local closing prices for Oct. 21 were: $5.38 for nearby corn, $5.48 for January corn, $4.77 for fall 2011 corn; $11.70 for nearby soybeans, $11.97 for January soybeans, and $11.13 for fall 2011 soybeans.

Brian Schaumburg, Chenoa, McLean County: Soil temps have dropped into the high 50s and NH3 rigs are moving across fields. Drainage work, equipment and farmstead repair, and yearend evaluations also are being completed. Most agree that a rain event would be welcome.

Corn, $5.44, January, $5.49; fall 2011, $4.73; soybeans, $11.66, January, $11.83, fall 2011, $11.08; wheat, $6.10.

Steve Ayers, Champaign, Champaign County: Frost on the pumpkin Friday morning with the temperature at 32 degrees at 4 a.m. and down to 30 by 4:45 a.m.

We had a few raindrops last Monday (Oct. 18) around noon and light frost Tuesday morning.

Rain was in the forecast. Our crop reporting district leads the state with 98 percent of corn harvested and 93 percent soybeans harvested. Wheat seeding is 72 percent complete. Still too warm for anhydrous at 53 degrees, but we should be close after our rainy spell. Farmers are tilling, tiling, baling, fertilizing, liming, doing conservation work, soil testing, and maintaining equipment. Let’s be careful out there!

Wilfred Dittmer, Quincy, Adams County: Hello again from Western Illinois where the fields have returned to dust as most are bare and the tillage tools are well polished. Most cornfields are wiped out, probably 95 percent or better, and soybeans perhaps 75 percent or more. It has certainly been a tremendous fall for harvesting. The rain gauge says 0.2 of an inch of rain for the month, and the machines could literally run every day. Our local weather folks report this October as the driest on record. The race is winding down with maybe only one more lap to go, so do be careful so you too can see the checkered flag. Have a safe week!

Carrie Winkelmann, Menard County: Harvest of corn and soybeans were completed on our farm Oct 11. There are several cornfields still standing in the county, but I haven’t seen any standing beans in my travels around the area. We have been spreading lime and disk chiseling. Others in the area were spreading fertilizer and doing various forms of fieldwork. Last week, we applied our fall herbicide program, and we started with anhydrous ammonia application Oct 21.

Wheat fields are green and look pretty good, despite the lack of rain since planting.

Todd Easton, Charleston, Coles County: It is very unusual to see only a small amount of activity in fields this time of year, but I think one could safely say we are about caught up — something that hasn’t been said in a long time. The extra dry fall has allowed a lot of badly needed work to be done to damaged waterways, washes, and terraces along with several miles worth of drain tile installed. One drawback to the extra dry spell became apparent last week in the wheat fields as emergence so far has been very poor and severe damage to stands could result if substantial rainfall doesn’t come soon.

Weather forecasters were predicting rainfall beginning over the weekend. It would be great to see an inch not only for the wheat crop but to tame the dust and mellow the clods that the rippers left behind.

Doug Uphoff, Shelbyville, Shelby County: The waiting game, machinery cleanup, mowing, and continued tile work have been the activities for the last two weeks. We are waiting for a rain to bring up the rest of the wheat we sowed Oct. 6. We are waiting for moisture and cooler soil temps to begin applying anhydrous. Dad has been getting machinery put away and I have been fixing tile. We disked our end rows on chiseled fields where we will later apply NH3. I was at Southern Illinois University-Carbondale to see Elliott play baseball and for parent’s weekend the last two weekends and there was still soybeans and corn in the fields down there, plus a lot of fieldwork to be done. There was a lot of wheat that had emerged to the south. Much more than last year, thanks to the dry conditions we have seen the last two months. Around here 99 percent of the fieldwork is finished. Oct. 21 cash corn, $5.34; Decatur prices (no trucking charges subtracted) cash corn, $5.56; November, $5.59; January, $5.73; cash beans, $11.73; Decatur prices(no trucking charges subtracted) cash beans, $12.04, November, $12.07, January, $12.10; diesel, $2.68; truck diesel, $2.625; gasohol, $2.787; soy diesel, $2.625; soy truck diesel, $3.084.

David Schaal, St. Peter, Fayette County: Another rainfree week here with harvest completed. Rain would be welcome. The wheat that has been sowed sure could use a shower, as some of the stands are on the spotty side due to lack of moisture. Fertilizer applications, disk and chiseling ripping are going on, along with a lot of dirt work on ditches and waterways. Producers also are beginning to get their corn and soybean varieties and numbers in line, along with some inputs for the 2011 crop. Rain was forecast for the weekend.

Dan Meinhart, Montrose, Jasper County: Another dry week with pleasant days and cool nights — typical October weather. There are a few cornfields to be harvested. The dry weather brought most of the July beans to maturity, allowing rapid harvest to progress.

Most of the wheat has emerged. Cleaning out ditches and some tiling are being done. Lime and fertilizer are being spread. This type of post-harvest activity has not been possible the last several years due to the extremely wet falls.

There were chances of rain over the weekend and early this week.

Ken Taake, Ullin, Pulaski County: Another dry week here in Pulaski County. Dust is really thick. The wheat we planted is having a hard time with emergence. It is so dry our stands are spotty to not there. We just haven’t had any showers at all. The main activities last week were spreading fertilizer and lime. There has been a lot of fall fieldwork going on. I’ve seen some tiling and those kind of fall activities.

People are just trying to get a lot of fieldwork done that they haven’t been able to do the last few years because of the weather. Please remember to take time to be careful during this busy season.

Page 7 Monday, October 25, 2010 FarmWeek

CROPWATCHERS Bob Biehl, Belleville, St. Clair County: Dry weather persists with a chance of showers over the weekend. A few fields of double-crop soybeans remain. Otherwise, farmers are fertilizing and liming and doing fieldwork. Also, there are a few sprayers running to kill some winter annuals and garlic, or putting some residual chemical on corn stalks.

Rick Corners, Centralia, Jefferson County: Another dry week. Harvest is wrapping up slowly. Fertilizing, tillage, and spraying are the norms now with a little lime spreading thrown in. If we don’t get a decent rain soon, the wheat crop is going to be a flop again.

Reports received Friday morning.

Expanded crop information available at FarmWeekNow.com

Kevin Raber, Browns, Wabash County: No rain this past week. Everyone I talked to, young and old, said it stayed drier this fall for a longer period than they could ever remember.

Wheat is still struggling to emerge. A lot of jobs are being completed that have been set aside for years. You can drive, dig, and move dirt through places that haven’t dried out for a long time.

Livestock producers adjust to higher feed costs

BY DANIEL GRANT FarmWeek

Higher feed costs may curb some expansion plans in the hog industry, but most producers should be in position to weather the situation, according to two Illinois pork producers.

Corn futures earlier this month traded at the highest levels since August 2008.

“With the run-up in corn (and soybean meal) prices, feed costs are going to go up,” said Dereke Dunkirk, a producer from Morrisonville and vice president/treasurer of the Illinois Pork Producers Association.

“Most producers probably will be OK,” he continued.

“Although the high (feed) costs may curb a few expansion plans.”

Fortunately for livestock producers, hog and cattle prices in recent months have

traded well above levels of two years ago when producers were hit with the doublewhammy of higher feed costs and low prices.

Some pork producers also have increased the rate of gain in their herds.

“Guys are happy feeding new corn,” Dunkirk said.

“The quality is much better than last year. It will increase production for us.”

In fact, improved efficiencies allowed some producers to expand. The Deuth family of Ogle County recently opened a new 1,600-head grow-to-finish swine production barn near Polo.

Expansion of both the hog and purebred Angus cattle herds was crucial for John and Jean Deuth to provide opportunities for their children, Michael, Daniel, and Renee, to return to the farm.

John Deuth, center, a grain and livestock farmer from Ogle County, discusses the advantages of his family’s new 1,600-head grow-to-finish swine production barn with John Hammer, left, and Maynard Hammer, right, during a recent open house at the facility located near Polo.

(Photo by Tim Maiers, director of public relations for the Illinois Pork Producers Association)

“We expanded the hog operation and beef herd over the years to create more income (to support more family mem-

bers),” said Michael Deuth, a fifth-generation farmer. “One of the big reasons we (put up the new hog barn) is to improve

efficiencies, but it will also improve the welfare of the pigs.”

The new facility also will add value to the farm as it will provide enough manure to fertilize 120 to 160 acres of corn.

The Deuths grow enough corn to feed their hogs, so the recent run-up in price won’t have a big impact on their feed costs. But it reduces “opportunity dollars” the Deuths could gain by selling the corn on the open market.

They’ve countered that by incorporating more distillers dried grains (DDGs) in feed rations to displace corn.

“We’ve been using more DDGs so we feed less corn and can market a few more bushels,” Michael said.

Overall, higher feed costs and tight supplies of livestock are projected to pressure retail meat prices into next year.

Fertilizer prices may continue to follow corn market Fertilizer prices in recent weeks have jumped as more and more farmers transitioned from harvest to fall fieldwork activities.

Average prices in the state the first two weeks of the month increased $67 per ton for monoammonium phosphate (MAP), $33.10 per ton for diammonium phosphate (DAP), $28.28 per ton for anhydrous ammonia, and $20.29 per ton for liquid nitrogen 28 percent spread, according to the Illinois Department of Agriculture (IDOA).

“With the early harvest, it’s been a gangbusters fall season for fertilizer,” said Joe Dillier, GROWMARK director of plant food. “And with the weather (the fertilizer application season) has been wide open. We haven’t had rain to slow things down.”

Illinois farmers as of the first of last week had harvested 93 percent of the corn crop, compared to the fiveyear average of 54 percent, and 90 percent of soybeans, compared to the average of 64 percent.

The quick pace of harvest followed by a rush to fall fieldwork has strained fertilizer supplies. Dillier last week said he was aware of several

retailers who experienced supply outages.

“The immediate supply (of phosphate and potash) is as tight as I’ve seen it in my career,” he said. “It appears the strong grain market boosted demand (for fertilizer) substantially.”

Dillier believes farmers also are catching up with fertiliza-

tion work that was suspended because of low crop prices late in 2008 and by the rain-delayed harvest of 2009.

“We’re seeing farmers make up for the last couple of years,” he said.

The strong demand likely will continue to keep pressure on prices.

Fertilizer prices statewide

as of last week averaged $678 per ton for anhydrous, $637 per ton for MAP, $617 per ton for DAP, $500 for potash, $454 for urea, and $305 for liquid nitrogen, IDOA reported.

“At this moment, prices are high because of tightness in the marketplace,” Dillier said. “And over the course of the year, fer-

tilizer prices likely will stay strongly correlated to grain.”

High prices for corn likely will result in increased corn acreage worldwide, which will pressure the nutrient market even more. However, if the corn price breaks, acreage could decline and fertilizer demand and prices could follow, Dillier added. — Daniel Grant

Lawmakers hope to school legislators, public on levees

BY MARTIN ROSS FarmWeek

With the U.S. Senate yet to act on legislation crucial to Illinoisans within the Mississippi River floodplain and the next Congress potentially in need of river reeducation, a bipartisan trio is planning a fall focus on flood concerns.

Springfield Democrat Sen. Dick Durbin and respective Belleville Democrat and Collinsville Republican U.S. Reps.

Jerry Costello and John Shimkus plan a levee “summit” aimed at developing a plan to address Southern Illinois levee needs. The summit likely will be scheduled later this fall.

Age and uneven maintenance raise concerns about the southern levees’ ability to withstand a serious flood. But Costello aide David Gillies questions Congress’ will to address what’s become “a $100-billion problem nationwide.”

Shimkus stressed he and his colleagues “have been dealing with levee issues on a bipartisan, multi-jurisdictional basis for

some time.” But Midwest lawmakers may need to re-emphasize the consequences of inadequate flood protection for freshmen congressmen who have campaigned on a platform of reduced spending and deficit reduction.

“A lot of folks coming in aren’t going to want to spend any money,” Gillies told FarmWeek. “‘We want stuff, but we don’t necessarily want to pay for it, and we don’t want the deficit to get worse.’ We’re going to have to try to square that somehow, but it’s not easy.

Certain things we’re more than willing to break out the checkbook for, but not necessarily this.”

Durbin notes more than 85 percent of the nation’s 100,000 miles of levees are locally owned and maintained, arguing budget shortfalls and “shifting priorities” have made local levee maintenance difficult. Southern Illinois includes a mix of federally and privately owned levees; local levee districts often must match federal funds for upgrades.

Shimkus said the levee summit would enable communities to “work together as a region.” Durbin deemed it important “that all community members — from the students at Shawnee high school to the region’s elected officials — are involved in this process and understand their risk.”

Shimkus supports Costello’s Housepassed measure to delay mandatory national flood insurance requirements based on new federal flood maps.

The proposal, now up for Senate action, protects eligible homes that are designated as being in a flood zone for the first time — for example, those included in new maps effective September 2008 would not be required to buy coverage until fall 2013.

Remapping has been a key issue in far southern Alexander County, which Gillies said needs at least $15 million to $20 million in levee upgrades. “The good thing is, the levees there are federally funded,” he noted.

FarmWeek Page 8 Monday, October 25, 2010

LIVESTOCK

Cattle numbers rise in spite of higher grain prices

BY DANIEL GRANT FarmWeek

The recent surge in corn and soybean prices apparently hasn’t made much of an impact at the feedlot, at least not yet.

USDA in its cattle on feed report Friday estimated the inventory of cattle and calves on feed as of Oct. 1 totaled 10.78 million head, up 3 percent from the same time last year.

Meanwhile, placements in feedlots (2.46 million head) also were up 3 percent from a year ago and were slightly higher than pre-report expectations.

“It seems at this point there

hasn’t been much reaction to the rising grain price structure,” said Dale Durchholz, AgriVisor market analyst. “I suspect there will be a bit of a lag response before (higher feed prices) filter into the meat industry, which is normal.”

The meat production sector that typically responds the quickest to changes in production costs is poultry. However, eggs sets in mid-October were up 5 percent while broiler placements increased 6 percent, according to the analyst.

Strong prices this month likely provided incentive for livestock producers to maintain or increase their herds and flocks.

Fed cattle prices last week reached $1.01 per pound.

“I think we’re up at the high end of the (price) range at this point,” Durchholz said.

“The cattle market (recently) has tended to be a function of grain price movements.”

The situation could change next month. November typically is a soft demand period for red meat.

Durchholz predicted cattle prices by the end of Novem-

ber could slip back into the mid-$90 range.

On the other hand, lighter cattle slaughter weights this year compared to last year and the possibility that higher feed prices could slow feedlot

placements could continue to support cattle prices at strong levels.

“Higher grain prices could slow placements,” the analyst added. “We ought to see market-ready supplies go down.”

Leaders of the American Meat Institute (AMI) and other livestock-related groups last week urged USDA to conduct a more comprehensive study of the costs associated with proposed livestock marketing rules in light of findings produced by an industry study.

USDA’s Grain Inspection, Packers, and Stockyards Administration (GIPSA) in June proposed adding several new sections to regulations under the Packers and Stockyards Act of 1921.

The new rules wouldn’t ban marketing agreements, but they would affect how U.S. livestock is purchased and sold. The proposed GIPSA rule also would

Don’t miss our Early Season Sale from March 17-31, 2010 Member Company Name website

Complete details on the latest USDA cattle on feed report can be found at FarmWeekNow.com.

Livestock groups concerned about price tag of proposed GIPSA rule lessen the burden of proof required to prevail in a Packers and Stockyards case, which could result in many additional legal challenges in the livestock industry and become “a plaintiff lawyer’s dream,” according to J. Patrick Boyle, AMI president and CEO. “USDA is operating under the assumption (the new GIPSA rule) would have less than a $100 million impact, which is the trigger for a more thorough analysis,” Boyle said.

However, a study by John Dunham and Associates commissioned by AMI concluded implementation of the proposed GIPSA rule could cost the U.S. 104,000 jobs and a $14 billion reduction in the national gross domestic product. It also could result in an estimated 3.33 percent increase in meat prices nationwide, according to the study.

In Illinois, consumers could pay $105 million more for meat and poultry products if the proposed rule is implemented, the study indicated.

The study assumed livestock marketing practices would revert to a spot pricing model used in the past, prior to major vertical integration in the industry. The study also assumed there would be a significant Notice of Annual Meeting Illinois Agricultural Association

Contact: Name

FarmWeekNow.com

Phone: (000) 000-0000 ©2010 GROWMARK, Inc. A11425_6x8_aod

Notice is hereby given that the annual meeting of the members of the Illinois Agricultural Association, will be held in the Renaissance Grand Hotel, 800 Washington Avenue, St. Louis, Missouri 63101, on Saturday, December 4, Sunday, December 5, Monday, December 6, and Tuesday, December, 7, 2010 with the official meeting of voting delegates convening at 8:00 a.m. on Monday, December 6, for the following purposes: To receive, consider and, if approved, ratify and confirm the reports of the officers and the acts and proceedings of the Board of Directors and officers in futherance of the matters therein set forth since the last annual meeting of the Association.

To elect nine (9) members of the Board of Directors to serve for a term of two years.

To consider and act upon such proposed amendments to the Articles of Incorporation or to the Bylaws of the Illinois Agricultural Association and upon such policy resolutions as may be properly submitted.

For the transaction of such other business as may properly come before the meeting.

James M. Jacobs Secretary

decline in marketing contracts.

“USDA is attempting to turn the clock back on the livestock and meat marketing practices that have made the U.S. meat production system the envy of the world,” said Mark Dopp, AMI senior vice president of regulatory affairs and general counsel.

GIPSA previously responded to concerns about the proposed rules by extending the comment period to Nov. 22.

But last week USDA ignored a request by 115 members of Congress to conduct a comprehensive economic analysis of the potential impacts of the proposed regulations.

“It is imperative that producers know how much the GIPSA rule will cost them,” said Sam Carney, president of the National Pork Producers Council.

Steve Foglesong, president of the National Cattlemen’s Beef Association and a producer from Astoria, said the rules go beyond the intent of Congress and the regulations would exceed the mandate of the 2008 farm bill.

“The GIPSA rule will further inject the federal government into the market and could very likely result in financial devastation to a critical part of our country’s economy,” Foglesong said.

Some ag groups — including the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America (RCALF USA) — last week supported USDA’s decision to bypass additional cost analysis of the propose rule and to continue the rule-making process.

“There is absolutely no language in the GIPSA rule that would prohibit value-added or other legitimate marketing agreements between producers and packers,” said Bill Bullard, CEO of R-CALF USA. Tara Smith, American Farm Bureau Federation (AFBF) farm policy specialist, last week told the Illinois Farm Bureau board she is concerned the new rule could be a back door way of getting at packer ownership.

AFBF and IFB are monitoring the situation and will push USDA for some clarifications and possible adjustments of the rules as details emerge. — Daniel Grant

FarmWeek Page 9 Monday, October 25, 2010

FROM THE COUNTIES

B

UREAU — Bureau, Henry, and Stark County Farm Bureaus and the respective University of Illinois Extension units will sponsor a fall equine seminar the first three Thursday evenings in November from 6:30 to 8:30 p.m. The sessions are free for 4-H members, FFA members, and Black Hawk East students.

Cost for others is $9 or three sessions for $20. Call the Farm Bureau office by Monday, Nov. 1, for reservations or more information for the first session on Nov. 4.

• Bureau, Henry, and Stark County Farm Bureaus, and Mike Taylor and Ron Behrends, Country Financial agents, will sponsor a defensive driving course from 10 a.m. to 3 p.m. Tuesday and Wednesday, Nov. 9-10, at the Black Hawk College Community Education Center, Kewanee. Both days must be attended to receive certification. Cost is $30, which includes materials and lunch.

Call the Farm Bureau office at 815-875-6468 by Monday, Nov. 1, for reservations or more information.

• Bureau, Marshall-Putnam, Stark, and Woodford County Farm Bureaus will sponsor a Day for Agriculture college open house for area students from 10 a.m. to 3 p.m. Wednesday, Nov. 17, at the Marshall-Putnam Farm Bureau office, Henry. Call the Farm Bureau office at 815-875-6468 for more information or if you know a student who would like to attend.

ARROLL — Holiday fruit, nuts, and fruit basket orders are due Monday, Nov. 22. Order forms were mailed to members or one can be printed off the website {www.carrollcfb.org}. Delivery will be Monday, Dec. 13.

• Farm Bureau will spon-

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sor free family portrait sessions from 9 a.m. to 4 p.m.

Saturday and Sunday, Nov. 20-21, at the Farm Bureau office. KatieLynn Photography will provide the portraits. Call the Farm Bureau office at 815-244-3001 for an appointment or more information.

ACKSON — The annual meeting will be at 6:30 p.m. Thursday, Nov. 11, at the Murphysboro Middle School cafeteria. John Edgar, state FFA president, will be the speaker. Call the Farm Bureau office at 6843129 by Wednesday, Nov. 3, for reservations or more information.

• Citrus and nut orders are due by Wednesday, Nov. 24.

Call the Farm Bureau office for prices or more information.

EE — 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 815-359-6037 for more information.

EORIA — The annual meeting will be at 5 p.m. Saturday, Nov. 13, at the Dunlap High School.

Andy Wiesenhofer, a cowboy poet, will provide the entertainment. Tickets are $10.

Call the Farm Bureau office

by Wednesday, Nov. 3, for reservations or more information.

IATT — The Wildlife Committee will sponsor a doe harvest contest. Entry fee is $10 per doe, with cash prizes awarded for largest and smallest does. Official rules and entry forms are available at the Farm Bureau office, Soil and Water Conservation District office, or Atwood meat processing plant. Call the

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Farm Bureau office for more information.

TARK — Bureau, Henry, and Stark County Farm Bureaus, and Mike Taylor and Ron Behrends, Country Financial agents, will sponsor a defensive driving course from 10 a.m. to 3 p.m. Tuesday and Wednesday, Nov. 9-10, at the Black Hawk College Community Education Center, Kewanee. Both days must be attended to receive certification. Cost is $30, which includes materials and lunch.

Call the Farm Bureau office at 286-7481 by Monday, Nov. 1, for reservations or more information.

TEPHENSON — Deadline for ordering Terri Lynn holiday nuts and candles is Friday. Delivery will be the week of Thanksgiving. Call 815-232-3186 or go online to {www.stephensoncfb.org} for a order form. Payment is required in advance.

• A family portrait program for members will be from 9 a.m. to 5 p.m. Saturday and Sunday, Nov. 13-14, at the Farm Bureau office. A free 8 x 10 portrait will be given for

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each sitting. Call the Farm Bureau office at 815-232-3186 for an appointment or more information.

• A defensive driving course will be 10 a.m. to 3 p.m. Tuesday and Wednesday, Nov. 16-17, at the Farm Bureau office. Doug Sommer will conduct the course.

Cost is $15 for members and $25 for non-members.

Lunch is included. Call the Farm Bureau office at 815232-3186 for reservations or more information.

• Stroke Detection Plus will perform screenings from 9 a.m. to 4:30 p.m. Tuesday and Wednesday, Dec. 14-15, at the Farm Bureau office.

Members may get the full package of four tests for $90. Call 877-732-8258 for an appointment.

• Farm Bureau will sponsor a bus trip Feb. 18-20, 2011, to the National Farm Machinery Show and Tractor Pull, Louisville, Ky. Call the Farm Bureau office at 815232-3186 or go online to {www.stephensoncfb.org} for more information.

NION — The annual meeting will be at 6 p.m. Thursday, Nov. 4, at A-J

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High School cafeteria. Call the Farm Bureau office at 833-2125 by Tuesday for reservations or more information.

• Citrus and fruit orders are due by Wednesday, Nov. 24. Call the Farm Bureau office for more information.

ERMILION — Farm Bureau has a specialty growers page on its website {www.vcfb.info}.

Information about Farm Bureau members growing a variety of ag products from pumpkins to Christmas trees is listed. Call or e-mail the Farm Bureau office if you would like to be included in the listing.

• The Vermilion County Farm Bureau Foundation will sponsor its annual silent auction during the annual meeting Monday, Nov. 22.

Call the Farm Bureau office at 217-442-8713 if you have an item to donate for the auction.

V

“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, October 25, 2010

PROFITABILITY

Preventing microbial growth in diesel fuel

BY KEN REICHERT

I recently encountered a 10,000-gallon diesel storage tank that had been in service for decades. A ladder inspection on top of the tank revealed a defective vent/breather gasket that let water gradually seep inside.

Also, there Ken Reichert was no bottom drain to remove the accumulated water.

It was no wonder that this farmer’s combine fuel filter plugged shortly after the beginning of harvest. As expected, the fuel filter was black and tested high for microbes.

The best way to control fuel-borne microbes is to prevent or eliminate the free water that builds up in storage tanks.

When fuel moves in and out of the tank, moist air and other contaminants are introduced inside.

As ambient air temperatures cool, water condenses on the inside of the tank and falls into the fuel and ultimately to the bottom of the tank.

Microbes are typically found at the water-fuel interface — an environment where they can rapidly grow and multiply.

Reports of filters plugged with microbial growth are

increasing. As it turns out, today’s ultra-low-sulfur diesel (ULSD) has a higher affinity to water than traditional, highsulfur fuels. Some also believe that the higher levels of sulfur that once were present in diesel fuel acted as a natural biocide.

Combines and other dieselpowered machines that are stored away for long periods with empty fuel tanks are likely to accumulate condensation

BY DANIEL GRANT FarmWeek

A recent softening of crop prices was linked by many analysts in part to a rally in the dollar (a weak dollar typically supports exports of U.S. ag products).

However, the situation is not expected to have a major longterm impact on what otherwise is viewed as a bullish market outlook for corn and beans.

“We saw a great deal of money pouring into commodities (in mid-August) when the dollar was getting pummeled,” said Darin Newsom, DTN senior analyst.

“But it looks like we may have put in a low on the dollar,” he continued. “We may start to see the dollar rally and commodities take a breather.”

If the crop markets are pressured by strength in the

Feeder pig prices reported to USDA*

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $30.00-$42.47 $37.87 $45.00-$56.39 $52.11 n/a n/a This Week Last Week 26,663 17,129 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $61.07 $64.10 $45.19 $47.43

Change -3.03 -2.24

USDA five-state area slaughter cattle price Steers Heifers

This week $102.00 $102.00

with a Bug Eye test kit and recommend biocide treatment if microbes exist at or above treat rate thresholds.

Another product, BUG OUT Sticks, provides ongoing protection from microbial growth and won’t activate until the presence of water is detected. After effective treatment, it is recommended that fuel filters be changed frequently as dead microorganisms continue to be

strained from your fuel.

Managing fuel quality may seem foreign if you haven’t had to do it until now. But if you want your equipment to be ready when you are, paying attention to these details can pay big dividends.

Ken Reichert is GROWMARK’s refined and renewable fuels sales manager. His e-mail address is kreichert@growmark.com.

Could a stronger dollar defuse rally in crop markets?

M A R K E T FA C T S

Carcass Live

over time and develop favorable conditions for microbial growth. While even full tanks can contain microbial growth, filling tanks with fuel reduces the amount of condensation that occurs and ultimately results in fewer problems.

If you suspect you have microbes in your storage tank, solutions to the problem may be as close as members of local FS cooperative’s energy team. They can test your fuel

(Thursday’s price) Prv. week Change $96.77 5.23 $97.03 4.97

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 108.25 1.82

This week 110.07

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-165 lbs. for 120148.25 $/cwt., dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 10-14-10 59.4 20.8 28.2 10-07-10 48.9 23.1 33.0 Last year 40.4 19.0 32.0 Season total 177.6 429.7 232.1 Previous season total 106.5 336.0 248.6 USDA projected total 1520 1250 2100 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

dollar Newsom predicted nearby corn contracts could test the $5 mark.

Long-term, though, Newsom believes the corn market is poised for another run toward $6 due to a tight supply and demand picture.

“The long-term outlook for corn and beans is still bullish,” he said. “The commodities more vulnerable to large selloffs” include energy products and gold.

The supply of corn and soybeans tightened this month when USDA cut its 2010 U.S. production estimates by half a billion bushels for corn and by 2 percent for beans.

Meanwhile, the corn demand outlook received a boost this month when the U.S. Environmental Protection Agency 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.

“Any supply and demand variable impacts prices,” said Tim Gallagher, executive vice president of grains and biofuels for Bunge North America, during the Global Financial Leadership Conference hosted last week by the CME Group. “But this (recent corn) price action was not solely caused by biofuels.”

Ethanol production currently is projected to consume about 4.7 billion bushels of corn, or close to one-third of the crop. Ethanol production will support corn prices, but the industry also will displace corn and soybean meal through the production of distillers grains, which serve as a substitute for livestock feed rations, Gallagher said.

Ian Goldin, director of Oxford University’s Oxford Martin School, predicted ethanol production will continue to drive up U.S. corn and food prices.

Robert Thompson, consultant with the National Center for Food and Agricultural Policy, also predicted commodity prices will remain above historical trends.

“Commodity prices may be somewhat higher than historical trends, but with a larger variance around that trend,” Thompson said recently at the Export Exchange in Chicago.

Thompson also predicted any rally in the dollar will be tempered by large U.S. debts to China and Japan.

U of I’s AGMasters to cover in-depth crop issues The University of Illinois AGMasters Conference will offer in-depth sessions on crop production and protection issues Dec. 2-3 at the I Hotel and Conference Center, Champaign. The advance registration deadline is Nov. 5.

The sessions will start at 7:30 a.m. both days.

The morning general session will focus on global climatic change and how variations in climate ultimately may affect crop production and pest management practices.

In addition, a panel of Extension specialists with the crop sciences department will provide updates on the most recent year and offer some projections for the 2011 growing season.

Participants will be able to select from 12 advanced, twohour sessions on specific topics. Each advanced session will be limited to 40 participants to allow for interaction between

participants and the speaker.

In addition to the U of I, the session instructors represent several universities including: Iowa State University, Ohio State University, Purdue University, University of Nebraska, and the University of Tennessee.

Through Nov. 5, the early registration fee is $300. After that date, the fee increases to $325.

Registration will end at the close of the day Nov. 17 and is limited to the first 160 registrants.

For more information or to register, go online to {www.cropsciconferences.com}.

If you have registration questions, contact Sandy Osterbur by calling 800-321-1296 or by emailing her at saosterb@illinois.edu.

Tate and Lyle expands in Chicago Tate and Lyle announced last week it will establish a new commercial and food innovation center in the Chicago area.

In May 2010, Tate and Lyle announced the implementation of a new structure to grow its business. The establishment of this new center, brings Tate and Lyle’s innovation group and specialty food ingredients business in North America together in a new, state-of-the-art facility in Hoffman Estates. The new center will be the global headquarters of Tate and Lyle’s innovation and commercial development group and the regional headquarters for the specialty food ingredients business in North America.

The center also will act as the base for U.S. employees with global responsibilities.

These groups currently are all located in Decatur, and employees from these groups will be relocating to the Chicago area. In total, approximately 160 positions will be located in the new center.

FarmWeek Page 11 Monday, October 25, 2010

PROFITABILITY Corn Strategy

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

Time to manage your risk Amid the day-to-day market hype and the generally steady climb to higher prices, it’s easy to lose sight of the more important need to manage one’s risk.

Even though cash corn prices are well above $5 and soybeans at $12, there’s no guarantee prices will be at these levels next week, next month, or six months from now. Yes, prices could be higher, but they just as easily could be lower.

Fundamentally, it’s always easier to see and quantify supply changes than it is demand.

Typically, one gets two to three months beyond a peak in prices before it’s apparent the higher levels have cut demand.

And once that occurs, the weaker demand structure tends to remain in place for a longer time than one might expect. In the current grain market, we would expect a weaker demand structure to persist into the next crop year once it becomes apparent prices have started the process of rationing supply.

The steady decline in the value of the dollar since June may have been just as important in the climb of grain prices as the changing supply structure. Over the past week, currency traders have become increasingly hesitant to maintain short dollar positions. Some think any additional monetary policy easing by the Federal Reserve has already

Basis charts

been priced into the mix.

A meeting of world economic ministers recently took place.

Results of that meeting could have implications, with an underlying fear it could temporarily change the course of the dollar.

The big hedge funds are still the major long in the commodity markets, grain markets included. A few investment consultants are saying it’s time to stop playing the “short dollar, long commodity” game. Once they start to exit, the impact will be significant. The first break could be dramatic, like the one after the Sept. 30 stocks report.

It may not last long, but subsequent rebounds likely will not achieve new highs.

Yet, no one can easily identify at what price or at what time a bull market will come to an end.

In the grain trade, we hear that farmers are wanting higher prices to sell remaining bushels to offset the impact of the bushels that were priced last spring. But the market is not in the business of guaranteeing a producer profit. It is in the business of balancing supply and demand.

That is why it is important to at least price some grain when the opportunity is presented.

And that extends to the 2011 crops as well.

The current price of 2011 December corn is offering producers with 185-bushel land the opportunity to lock in $900 per acre. For 55-bushel-soybean land, it’s above $600.

Still, this fall’s surge in corn and soybean prices has carried input prices higher with them, increasing your production costs. We have even heard it’s lifting cash rents in some locations.

Remember, the market is not in the business of guaranteeing you a profit; it’s only function is to balance supply and demand.

The opportunity to make sales at these prices may not be present in the future, reducing your profit potential. And if a changing economic structure were to bring even higher prices, you can use the opportunity to sell more.

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2010 crop: The corn market remains volatile but has yet to signal the move up has ended. A close below $5.40 on December futures would be the first sign the trend might be turning down. Even though higher prices are possible, we believe the risk of ownership has become too large to hold corn unpriced. Hedge-to-arrive (HTA) contracts for winter /spring delivery may be the best marketing tool, but because carry has diminished, check them against the cost of carrying inventories.

2011 crop: We continue to think initiating sales of the 2011 crop is warranted based on the income potential current prices offer. Once prices start to curtail demand, the impact will persist into the new crop.

Fundamentals: Weekly export sales were dismal, just 212,500 metric tons (8.3 million bushels). While one week doesn’t make a trend, if it’s repeated, it could be a sign demand rationing may be starting. Market bulls still want to talk about potential Chinese buying, but we think it’s more likely later, or at lower price levels than today.

Soybean Strategy 2010 crop: Speculative money is the big influence driving prices higher. Chinese buying has been good but not exceptionally so. If November soybeans can maintain closes above $12, they could move as high as $12.60. But like corn, the risk has grown with higher prices, and we believe the risk has gotten too large to justify owning inventory.

2011 crop: At these prices and with average yields, the gross income per acre is too large to justify not making a sale. We still believe having 20 percent priced is a good marketing strategy.

Fundamentals: Chinese soybean purchases continue to be accumulated at an aggressive pace but not an unusually aggressive one. By this time last year, they had purchased 64 percent of their purchases from us.

This year’s sales are about 70 percent of expected purchases.

Maybe more important, unless there’s a weather problem in South America, their purchases from us could soon all but dry

up. Weather is steadily improving in South America, too.

Wheat Strategy 2010 crop: Wheat has been trading in a sideways trend, but lost technical support last week with Chicago December futures slipping below the 10- and 20-day moving averages. The next level of support comes at $6.41, but if that fails, December could fall to $6$6.25. Use the next short-term rebound to wrap-up sales if you still have inventories. HTA contracts for winter delivery still appear the best marketing tool.

2011 crop: Use rallies to

$7.40 on Chicago July 2011 futures for catch-up sales. If basis is wide compared to this past summer, consider a HTA contract.

Fundamentals: Very little has changed in the fundamental structure for wheat. Some of the concern about dry conditions in the Great Plains could ease, with the latest forecast calling for moisture over the next week. Weekly export sales, 574,000 metric tons (21 million bushels), were slightly supportive, but the overall trend continues to lag the pace required to reach USDA’s forecast.

FarmWeek Page 12 Monday, October 25, 2010

PERSPECTIVES

Why cooperatives?

have a responsibility on November 2

N

Independence, “We hold these truths to be ov. 2, election day, is rapidly self-evident, that all men are created equal, approaching. We the people, as that they are endowed by their Creator with our Constitution begins, have a certain unalienable rights, that among these right and a responsibility to fulfill on that are life, liberty and the pursuit of happiday. ness.

It is our day to go to the polls and cast “That to secure these rights, governments our vote for those we wish to are instituted among men deriving their just govern our state and our powers from the consent of the governed.” country.

The consent of the governed — therein I hope every one of us is lies our responsibility. It is a process we becoming more informed on begin when we go to the polls, and continthe candidates. Don’t just go ue as we follow up with our elected offiby the ads and the fliers; get cials. on the Internet, read If you’re thinking of not voting, think of FarmWeek and FarmWeek TERRY this: The patriots in the winter of 1776 had Now.com.

POPE Even better yet, go to some lost several battles, were cold, tired, sick, and hungry. candidate forums. Don’t just On Christmas Day, General Washington listen, ask tough questions. It is not only made the plan to cross the icy, frozen important to listen to their views, but also Delaware River and make a surprise attack equally important for them to hear your on the Hessians in views. We in rurTrenton, N.J. al America and They made that rural Illinois Editor’s note: This is the final in a series of need to be active columns focusing on Farm Bureau members’ journey, won the and we need to responsibilities in the up- battle, and it was be heard. coming election. The goal the turning point Once we are is to encourage Farm Bu- in the Revolutioninformed, it is reau members to become ary War. I believe those time to act. If active in the political you can’t vote on process and elect candi- patriots would say: election day, dates committed to serv- “I gave my life, my fortune, and my contact your ing agricultural interests. sacred honor so local election you could live in a officials and vote country where you have the right to vote absentee. It is really quite easy.

If you can vote on election day, make it a and to make or not make change.”

Please, vote on Nov. 2. priority to go to the polls and even offer to take some people with you.

Terr y Pope, an Illinois Farm Bureau director from I won’t go into the countless times one Burnside, chaired the Illinois Farm Bureau Legvote has made all the difference. islative Redistricting Working Group.

Why vote? To quote the Declaration of

LETTER TO THE EDITOR Time to eliminate subsidies for ag Editor: We live in a time of government bailouts, deficit spending, and skyrocketing deficits.

Unemployment is high, and almost every economic indicator is uncertain.

The agriculture economy has for the most part remained strong. With the Illinois Farm

Bureau annual meeting not far away and the next farm bill about to be hashed out, this is a perfect time to address farm subsidies.

We need to return to fiscal responsibility in the federal budget. As a farmer myself, I know about the occasional challenges of production and marketing, but I encourage farm lead-

ers, IFB, and the American Farm Bureau Federation to use this opportunity to take the lead in calling for the elimination of agriculture subsidies.

It’s time for everyone, including farmers, to quit relying on the government for their income and their future.

TONY THOELE, Dieterich

During the recent economic upheaval, the cooperative structure was the focus of many discussions. Why do cooperatives seem to be weathering the weak economy better than others?

Is the structure such that cooperatives are better positioned or better insulated from market volatility?

These questions are difficult to answer, but important ones to consider.

I believe it’s the people who work for and have ownership in cooperatives who make these businesses successful.

All business is built on relationships, but perhaps none as much as cooperatives. Even the word “cooperative” means working together, combining resources to reach and exceed a common goal.

Cooperative businesses are all around us, more than 29,000 in the United States. Americans have come to depend heavily on the variety of goods and services they provide.

Many economic sectors support thriving cooperatives, including grocery, electric, farm DAN supply, credit unions, lending associations, and KELLEY marketing. These businesses account for more than 2 million American jobs and yearly revenue in excess of $650 billion.

GROWMARK has a strong cooperative heritage and deep roots in the American economy. More than 80 years ago, a group of Farm Bureau members seeking a reliable supply of quality products at a reasonable price joined together to accomplish this goal.

It was this cooperation that led to the first FS cooperatives, which today make up the GROWMARK System of cooperatives, generating billions of dollars in economic activity each year.

The GROWMARK System is comprised of FS and grain member cooperatives and subsidiaries and employs more than 7,000 people who, in turn, serve more than 100,000 customers.

GROWMARK does business in more than 20 states, Ontario, Canada, and Mexico.

Although cooperatives throughout the United States recognize Cooperative Month in October, they remain focused on their true purpose -– service to their member-owners — yearround.

Because each cooperative is owned and controlled locally, members have a voice in maintaining ethical business practices, sound operations, and a strong commitment to their communities.

Much more can be accomplished by working together than by going it alone. Cooperatives such as GROWMARK and FS remain strong because of the strength of those who support them.

To Farm Bureau and its members: thank you for supporting local FS member cooperatives and the GROWMARK System.

Your support in building strong relationships is a visible example of the benefits of the cooperative way of doing business.

Dan Kelley is the chairman of the board and president of GROWMARK. He farms near Normal.

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