LEGISLATIVE redistricting is so foreign to most voters they won’t even venture a guess on how districts are drawn, according to a recent survey. ..................................3
TWO ILLINOIS congressmen are critical of the omission of river priorities from the recently proposed $50 billion infrastructure investment plan. ............................4
A G R I C U LT U R A L l e a d e r s would like to see the reach the Environmental Protection Agency has extended into farming shortened up a bit. ...................................5
Monday, September 27, 2010
Two sections Volume 38, No. 39
Producers mobilize for estate tax reform BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
Rains had pre-empted the day’s fieldwork, so Carolyn Lawrence decided to alert policymakers to the potentially dire forecast ahead for many Illinois producers. Lawrence and husband, Rob, who farm near Roseville in Warren County, are the self-described fifth-generation “stewards” of their operation, an Illinois Sesquicentennial Farm. They are among thousands of Illinois farmers who have contacted Democrat Sens. Dick Durbin of Springfield and Roland Burris of Chicago this month seeking federal estate tax relief for 2011. As part of an earlier threeday Illinois Farm Bureau campaign, producers made 2,300plus calls to the senators warning them of the hit farm heirs could take under a January return to a pre-2002 $1 million estate tax exemption and a 55 percent tax rate. Farmers urged the pair to back a phased-in $5 million individual exemption sponsored by Senate Ag Committee Chairman Blanche Lincoln (D-Ark.) and Sen. Jon Kyl (R-Ariz.). “We had a rainy day (on Sept. 18), and our lawyer had
See page 3 for more details sent us a letter mid-week asking if we would write a letter,” Lawrence told FarmWeek following a Thursday grain delivery. “He has a lot of farmers in
the same situation, and I think it’s wearing on him, trying to advise them on the best thing to do. So I ... sat down for an hour or two, composed the letter, and sent it off to the senators.” Last week, Senate Finance Chairman Max Baucus (DMont.) announced plans to introduce legislation that would address the estate tax issue and extend expiring 2001/2003 tax cuts (see page 3). However, Senate leaders last week said a vote on “extenders” would be delayed until after the November elections. Lawrence noted a growing number of area farmers nearing retirement age as well as the “incredible” escalation of Illi-
nois land values over the past decade — her husband’s parents paid $200 an acre for land now valued at $7,000 an acre. The Lawrences face particularly acute financial concerns: Rob’s parents reside at a nearby nursing home, and their care costs currently consume most of their farm’s annual income. While the elder couple incorporated the family farm, formed trusts, and otherwise “did all they could to plan for leaving their estate to their children,” they did not anticipate a return to a $1 million exemption and “an estate tax of over 50 percent,” Carolyn told senators. She warned them 2010 could be “our last year of
farming” if Congress fails to act soon. A $5 million exemption and an accompanying 35 percent tax rate likely would relieve the Lawrences of estate tax liability, she said. The Lawrences do not support a counterproposal by Sen. Dianne Feinstein (D-Calif.) that would defer family farm estate taxes under stringent eligibility criteria and the condition land remains in production and in the family. That would limit the flexibility heirs might need to restructure or refinance operations, she said. “And there also are nonfarm heirs (within families),” Lawrence added. “To tie things up for 10 years or more isn’t fair to them.”
Harvest nears halfway mark; yields remain disappointing BY DANIEL GRANT FarmWeek
More than half of the state’s corn crop likely is in the bin as the torrid harvest pace continued much of last week. Illinois farmers as of Sept. 20 had harvested 38 percent of the crop compared to just 1 percent at the same time in 2009 and the five-year average of 12 percent. Unseasonably warm temperatures and nearly ideal harvest conditions allowed farmers to keep their combines rolling last week until showers early Friday morning provided a much-needed break for some. “The corn is dry — under 15 percent,” said Tim Lenz, a Shelby County farmer and president of the Illinois Corn Growers Association, who as of Friday had harvested about 75 percent of his corn crop. “It is just a matter of how fast you can get it.” Lenz estimated many farmers in his area could finish harvest in the next two weeks, which would be earlier than some farmers were able to start harvest last year due to a late-developing crop and numerous rain delays. “It’s been almost ideal (conditions) with a few showers to
break it up,” Lenz said. “It’s been a lot better than last year, which was a nightmare.” But while harvest conditions this season have been much better than last year, yields are falling below year-ago levels for many producers. “Yields are a little down from last year, closer to the five-year average,” Lenz said. Production took an even bigger hit in parts of the state that were extremely wet this summer. Terry Pope, a farmer from Burnside in Hancock
County and Illinois Farm Bureau District 9 director, last week reported his area received more than 50 inches of rain during the growing season. “In this area, it (corn production) is not very good,” Pope said. “The big issue is we have a lot of corn that was stunted.” Pope on Friday reported corn harvest in his area was 40 to 50 percent complete and yields ranged from just 44 bushels to 145 bushels per acre. “We have a lot of 60-, 70-, and 80-bushel corn that’s been
harvested so far,” he said. “The corn-on-corn has been the most disappointing, but even the cornon-beans has not been good.” USDA earlier this month lowered its statewide corn yield estimate from 180 to 174 bushels per acre. The statewide soybean yield, though, was projected to average a record-high 51 bushels per acre. Soybean harvest as of the first of last week was 10 percent complete statewide compared to no progress in 2009 and an average of 5 percent.
John Strader of rural Ashmore in Coles County last week was in his second day of soybean harvest after having finished harvesting corn. He farms 2,200 acres, half soybeans and half corn. He said corn yields averaged 175 bushels per acre, and his beans were starting out in the mid-50s. With a wetter-than-usual June followed by a dry July and August, Strader characterized the corn yields as about average but said his soybean yields were good. Harvest this year is about a month earlier that last year, he said. Statewide, soybean harvest was 10 percent completed as last week began. (Photo by Ken Kashian)
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