FarmWeek April 12 2010

SENATE DEMOCRATS have introduced their proposal for a method to reform how legislative districts are drawn. .........................3

IS ILLINOIS REALLY as corrupt as many believe? Not so, according to authors of a book on Illinois politics. But it is not without sin. .......3

THE USDA REPORT Friday was not much of a market mover. But the soybean export estimate is up 13 percent from last year, a record. ........6

Monday, April 12, 2010

Two sections Volume 38, No. 15

U of I Extension unveils budget-cutting plan Centers will close, staff to be reduced

BY KAY SHIPMAN FarmWeek

The University of Illinois Extension will maintain its

FarmWeekNow.com Listen to Gar y Beaumont’s inter view about Extension restructuring plans at FarmWeekNow.com.

local roots in a restructuring plan announced Friday to help

the service survive state budget cuts.

Interim Extension director Bob Hoeft released a plan revealing Extension will close all regional education centers, reduce staff, and develop multi-county partnerships — but keep an office in every county.

“In our public meetings, we heard loud and clear from our clientele how much they value Extension programming and our local presence,” Hoeft said in a prepared statement. The plan maintains the local Extension presence in each

IFB task force to eye 2012 farm bill goals

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

Illinois Farm Bureau is fielding a new farm bill study team well ahead of congressional debate to map out what could prove a crucial defense against ag budget cuts.

A 36-member Farm Policy Task Force will develop policy options for delegate consideration at IFB’s December annual meeting. Organizational priorities could then be presented to Congress in preparation for “2012” farm bill debate.

The task force is set to meet initially in late July in Bloomington, with subsequent meetings tentatively set for August and September.

Noting the White House’s push to trim ag spending other than that for nutrition, IFB President Philip Nelson warned against taking a merely “reactionary” approach to farm bill development.

He recommended discussion of risk management or other options with farmers in other regions, rather than simply watching future direct farm payments “eroded under the budget knife.”

Payment limits in particular “are going to be a focus in a big, big way,” IFB Governmental Affairs and Commodities Director Mark Gebhards warned. Citing current proposals to cut more than $6 billion in crop insurance funding, Nelson suggested “just holding your own is going to be a difficult challenge” in the prospective budget environment.

House Ag Committee Chairman Collin Peterson (DMinn.) plans to conduct a series of farm bill hearings

county, he noted.

Extension is being forced to make changes because of state budget problems. Gov. Pat Quinn proposed cutting Extension funding by $5.56 million in his proposed FY 2011 budget. Extension’s current budget is about $65 million.

Under the reorganization plan, Illinois will have 30 mul-

ti-county Extension groups, each comprised of three to five counties. Extension in Cook County will continue as a single-county program.

Thirty county directors will administer programs and services for the multi-county groups. This means the 76 current county director positions will be reduced by 46. However, many county director positions are vacant, which will mean fewer actual personnel reductions, Gary Beaumont, U of I Extension spokesman, told FarmWeek.

By May 10, individual counties must submit proposed multi-county partnerships to Extension administrators, who are to respond by May 19. The multi-county proposals either will be accepted or adjusted, according to Beaumont.

The staff for each multi-

county group will include at least a county director, a unit secretary, three educators, and a staff person to manage volunteers.

About June 30, Extension will close the regional education centers in Carbondale, Effingham, Macomb, Matteson, and Mt. Vernon. Educators based in those centers will move to county Extension offices.

The remaining centers will close as soon as possible, depending on the building leases. Those centers are located in Champaign, Countryside, East Moline, East Peoria, Edwardsville, Rockford, and Springfield.

“I think the general pieces (of the reorganization plan) we have known about,” said Matt Montgomery, Mason See Extension, page 3

FARMING THROUGH A LENS

Mercer County farmer and professional photographer Michael Zecher of Aledo combines his love of farming and photography, but doesn’t risk damaging expensive camera equipment by taking them in tractor and combine cabs. Read how Zecher’s farm photos are attracting attention at art shows on page 6. (Photo by Ken Kashian)

See Farm bill, page 2 FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, April 12, 2010

GOVERNMENT

Quick Takes DOCUMENT POOR FIELD CONDITIONS — Farmers should keep their cameras handy to document ruts and other field conditions that may cause them to deviate from their conservation plans for highly erodible land (HEL), according to the Natural Resources Conservation Service (NRCS).

Keep the photos handy for later use. NRCS recommends farmers use tillage only in truly problem spots and do only the amount needed to fill in ruts or break up compacted soils.

NEW-STYLE CATTLE RUSTLING? — Police in Kane County last week were investigating the theft of $5,000 worth of bull semen from a Hampshire-area dairy farm. The semen was in a canister and frozen with liquid nitrogen.

The semen was intended to be used for breeding purposes next winter, according to a Kane County Sheriff ’s Department spokesman.

Police were checking to see if the theft could be related to similar complaints in southern Wisconsin, where rewards are being offered for information leading to arrests. One theft there involved about $20,000 in vials of bull semen, police said.

GROWMARK ACQUISITION — GROWMARK and eight of its FS member cooperatives have acquired the business and inventory of Tri-County Petroleum Inc. The acquisition includes the fuels and lubricant business located in the Southern Illinois towns of Greenville, Hamel, Pierron, Red Bud, Vandalia, and Wood River.

GROWMARK Lubricants of Bloomington purchased the Extreme Lubricants Brand and will service all of the lubricant accounts.

Tri-County Petroleum Inc. was established in 1978 and provided fuels and lubricant products to 14 counties in South-Central Illinois and the metropolitan St. Louis, Mo., area.

FS member cooperatives now will service fuel accounts in the 14 counties.

MILK A BEAUTY SECRET? — People who want to maintain or improve their physical appearance should make sure they “Got Milk,” based on a new marketing campaign.

The California Milk Processor Board (CMPB) has introduced a new marketing campaign in which “Beauty

By Milk” counters are stationed near cosmetic sections of select department stores in the state.

Shoppers who stop at the milk counters can speak to beauty consultants and learn about the benefits of the “wonder tonic” milk, they can sip on milk-based drinks, and experience a virtual makeover during the free visit.

CMPB wants Californians to know that proper nutrition with milk is key to achieving radiant skin and healthy hair and nails.

(ISSN0197-6680) Vol. 38 No. 15

April 12 , 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.

FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office.

POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2010 Illinois Agricultural Association

Will new health system boost or reduce farm coverage? saying you prefer that over the health savings account plan. In many ways, I think the two of Federal mandates aside, health care coverage them are mutually exclusive.” “becomes very much an individual economic Further, he sees “no doubt” that given the issue” under a new system that allows low-cost cost of a policy vs. a $695-per-person or roughly opt-outs and appears to discourage saving to $2,000-per-family fine, insurance opt-outs will cover medical costs, economist Ross Korves significantly undercut congressionally projected warns. participation and thus the added, offsetting revTax-deferred health savings accounts (HSAs) enues insurers are expected to receive to comwere created in late 2003 as a way of enabling pensate for the higher costs of providing care. individuals or families to cover At a median $50,000high insurance deductibles $60,000 annual income for and/or unexpected medical a U.S. family of four, a ‘If one of the members $12,000-$15,000-per-year expenses.

Money is deposited in of a family wor ks off health plan without HSAs pre-tax, and by 2011, contributions t h e fa r m a n d g e t s a employer the new health care law will “takes way too much of health care plan pro- your income,” especially place new restrictions on how those funds can be used. v i d e d , e v e n i f t h e y for lower-risk younger conA 20 percent tax penalty m a y h a v e t o p a y a sumers and seniors with a (double the current rate) will history of good health, be levied when an HSA holder t h i r d o r h a l f o u t o f Korves said. uses money for non-qualified pocket, they will proHe believes many purposes. Further, the law employers likely will b a bl y g o a h e a d a n d caps the maximum amount choose to pay federal stay in that plan.’ that can be deposited annually penalties — $2,000 per into an HSA at $2,500. employee for those with — Ross Korves full-time payrolls of 50 or Korves is concerned new economist requirements eventually could more — rather than shoul“squeeze out” health accounts der the costs of offering a as an option for those who choose bare-bones or health care plan. high-deductible coverage or opt to pay annual “If one of the members of a family works off federal fines in lieu of more expensive insurance. the farm and gets a health care plan provided, “Anything that would limit the effectiveness even if they may have to pay a third or half out of those plans would end up hurting long-term,” of pocket, they will probably go ahead and stay he told FarmWeek. “I think the Obama plan is in that plan,” Korves said. to pull away from those kinds of health savings “If the health savings account becomes less accounts. attractive, I could see people possibly paying the “When you buy into the Obama plan, you’re penalty.”

BY MARTIN ROSS FarmWeek

IFB names Farm Policy Task Force members Following are members of the Illinois Farm Bureau Farm Policy Tax Force and their home counties: IFB board members: Mike Kenyon, Kane Dale Hadden, Morgan Troy Uphoff, Shelby Darryl Brinkmann, Clinton Fifth board representative to be determined Board appointees: Bob Gehrke, Kane Earl Williams, Winnebago Jeff Kirwan, Mercer Rich Henss, St. Clair

Fred Blessing, Wayne Rollo Burnett, Massac Monty Whipple, LaSalle Bob Brackmann, DuPage Dennis Haab, Livingston David Gay, Pike Ron Armbrust, Mason David Carr, Macon Robert Catey, Cumberland Dan Kessler, Clay Steve Albrecht, Greene David Uhlman, Tazewell Ted Mottaz, Knox Jerry Watson, Champaign Grass Roots Issue Team: Randall DeSutter, Knox

Ronald Fluegel, Stephenson Dwayne Anderson, Henry Matt Hughes, McLean Kevin Green, Vermilion Mike Marron, Vermilion Dean Campbell, Randolph Donald Duvall, White County managers (non-voting): Steve Arnold, Kane DeAnne Bloomberg, Rock Island Tim Stock, Macon Garry Jenkins, Williamson Regional manager (non-voting): Brian Puetz, Peoria

now.” Thus, advance research and prioritization not only may help protect program budget baselines but also could guide freshman lawmakers unfamiliar with agriculture.

“Unless we see a major (congressional) turnover in November, this administration has really put a tremendous emphasis on ‘cut, cut, cut’ as it relates to farm program payments, to direct payments,” Nelson advised. “I think we’re going to be some-

what on the defensive.”

IFB’s group includes 18 county Farm Bureau presidents, one from each IFB director district; five members of the 2010 IFB National Affairs and Marketing Committee; eight IFB Grass Roots Issue Team members; four county Farm Bureau managers from each region to serve as ex-officio, non-voting members; and one IFB regional manager, also in a non-voting role.

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

Richard Verdery Classified sales coordinator

Nan Fannin Director of News and Communications

Dennis Vercler Advertising Sales Representatives

Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

Farm bill Continued from page 1 this session. Nelson, in Washington last month for American Farm Bureau Federation’s March board meeting, argued that serious debate over provisions very likely would not begin until 2012, possibly with a largely new Congress.

For example, Senate Ag Committee Chairman Blanche Lincoln (D-Ark.) “may not even be around (in 2011), if you look at the polls right

FarmWeek Page 3 Monday, April 12, 2010

GOVERNMENT

Senate Democrats push legislative redistricting plan

BY KAY SHIPMAN FarmWeek

Senate Democrats lobbed the latest volley on changing how Illinois draws legislative district maps. Last week, Democrats introduced Senate Joint Resolution 121, a redistricting plan filed as a constitutional amendment.

Sen. Kwame Raoul (D-Chicago), chairman of the Senate Redistricting

FarmWeekNow.com Visit FarmWeekNow.com to listen to Sen. Kwame Raoul’s comments on a new legislative redistricting plan.

Committee, noted both the Senate and the House would have to pass the “Citizens First” measure by a super majority (three-fifths of both chambers) before it would be put on the Novem-

ber ballot. Voters also would have to pass the measure in order for the Illinois Constitution to be amended, Raoul added.

“We should create districts in a fair manner and let the Republicans or Democrats, the Green Party, the Tea Party, or whoever it is vote their person in,” Raoul said during a news conference.

Supporters of another redistricting proposal, the Fair Map Amendment Initiative, are attempting to collect enough voters’ signatures to put that proposal on the November ballot.

Friday at FarmWeek presstime, Illinois Farm Bureau’s Legislative Redistricting Working

Group had an opportunity to discuss the Senate Democrats’ proposal with Raoul, according to IFB Director Terry Pope, working group chairman.

The working group will review the proposal and work with the IFB board, Pope added.

Raoul described the multiple steps in his Citizens First measure to develop new legislative district maps. The map-drawing process would be overseen primarily by state legislative leaders.

If none of those methods was successful, the map would be drawn by a “special master” appointed by the

two senior justices on the Illinois Supreme Court.

Raoul emphasized the Democrats’ proposal would protect representation of the state’s diverse population.

Two years ago, a similar measure passed with bipartisan support in the House (but failed in the Senate), according to Raoul. “We hope we get the same bipartisan support,” he added.

Some political experts have suggested Illinois institute Iowa’s redistricting procedure, which uses a computer to draw the map.

However, Illinois’ population is more diverse than Iowa’s, Raoul said.

“The critical thing to look at is this (the redistricting proposal) would move the state forward, not backward, and would reflect the true diversity of the state,” Raoul said.

Author: Illinois’ political reputation may taint reality Illinois government has problems, but the public may perceive the situation as worse than it really is, according to a political scientist and author of a book on Illinois politics.

“I think the (Rod) Blagojevich saga tarnishes the State of Illinois and reinforces the sense that Illinois is one of the most corrupt states, even if that is not true,” said James Nowlan, senior fellow with the University of Illinois’ Institute of Government and Public Affairs.

Nowlan and his coauthors, Samuel Gove and Richard Winkel, recently released an updated edition of “Illinois Politics: A Citizen’s Guide.” Gove is director emeritus of the Institute of Government and Public Affairs, and Winkel, a former state legislator, directs its

office of public leadership.

Over the past several weeks, the nation was remind-

ed of Illinois’ political scandals via former Governor Blagojevich’s appearance on the “Celebrity Apprentice”

television show. Last week, Donald Trump fired Blagojevich and ended his stint on the show, but not before Blagojevich declared his innocence at every opportunity.

Nowlan illustrated his point about the perception of the state’s reputation by noting a tax group ranked Illinois 30th out 50 states for its business climate. However, a recent poll of top chief executive officers ranked Illinois as having the 48th worst business climate.

“I think part of that (latter ranking) is the bad reputation Illinois may have affecting the business climate,” Nowlan said.

In their book preface, the authors admit they erred in their 1996 edition by speculating that efforts to reduce state political corruption were successful.

Illinois State Fair to add child farm exhibit DuQuoin State Fair cutting trotting derbies

hogs, milking cows, brushing sheep and gathering wool, collecting eggs, planting seeds, and harvesting vegetables. The children will then take their produce to sell at a pretend farmers’ The state’s two state fairs will see changes market. this summer. The Illinois State Fair runs Aug. “We’re trying to support agriculture, educate 13 to 22 followed by the people about agriculture, and do DuQuoin State Fair from Aug. it in a fun way,” Bliefnick added.

28 through Sept. 6.

She said the idea came from a Illinois State Fair officials are ‘It’s all play and similar exhibit she saw last year working with agriculture comat the Indiana State Fair. modity groups and building make believe.’

Due to state budget cuts, the trade unions to develop an interDuQuoin State Fair will elimiactive farm exhibit for children — Amy Bliefnick nate the World Trotting Derby on the ground’s southeast corIllinois State Fair manager and the Filly World Trotting ner, Amy Bliefnick, state fair Derby. manager, said in an RFD-radio The World Trotting Derby interview last week. was one of the nation’s most Dubbed “Farmers’ Little prestigious harness races and had attracted Helper,” the exhibit will feature activities to nationally prominent competitors. teach children and their parents about agriculFor more information about the fairs, go ture. “It’s all play and make believe,” Bliefnick said. online to {www.illinoisstatefair.info} and She envisioned young fair visitors feeding {www.agr.state.il.us/dq}. — Kay Shipman

The authors wrote: “We now find it hard to make the case that corruption has abated,” given the conviction of former Gov. George Ryan, continued prosecution of Chicago officials and businessmen, and Blagojevich’s impeachment, conviction, and removal from office.

Ironically, Illinois government corruption may be “a little less” today than it was in the 1900s when bribed legislators shared a post-session jackpot of cash for their votes, according to Nowlan.

But the perception of state political corruption may not change in the near future if Nowlan’s U of I students are any indication.

Each year, Nowlan quizzes students in his American politics class on whether they would advise a brother to pay a

$1,000 bribe to have drunk-driving charges dismissed. Over seven years, two-thirds of the students have favored paying a bribe.

“It shocked me that they didn’t reject the idea,” Nowlan said. “Most of them are seniors headed to law school. That (response) suggests in Illinois there is a culture affecting many offices; that in Illinois we play the game the way we think others have.”

In addition to a chapter on political corruption, the book explains how the state government runs, how politics operate, and some obstacles and opportunities for change.

“Illinois Politics: A Citizen’s Guide” is available from the University of Illinois press at {www.press.uillinois.edu/} and from most major bookstores.

— Kay Shipman

Ag scholarship digest Excellence in Agriculture Scholarship — The Illinois state treasurer’s office will award 10 $2,000 scholarships to Illinois high school seniors who plan to earn a degree and pursue a career in agriculture or an agriculture-related field.

Applicants also must have a minimum 2.75 grade point average, be an Illinois resident, and be accepted at an accredited higher education institution in Illinois.

Applications are available online only at {www.treasurer.il.gov/programs/cultivate-illinois/scholarships.aspx}. All applications must be postmarked on or before May 14. Applications must include an essay, transcript, two letters of reference, and a list of extracurricular activities and honors.

Extension Continued from page 1 County Extension director.

Extension employees received details of the plan early Friday when it was released statewide, he said.

U of I Extension employs about 800 people whose positions range from the director

to secretarial staff in local offices and includes full- and part-time staff.

Extension’s budget is 18 percent federal funding, 46 percent state funding, 21 percent from local counties, and 15 percent from grants and revenue-generating activities.

FarmWeek Page 4 Monday, April 12, 2010

RESEARCH Major biofuels effort under way

Biomass and conservation seen as compatible

BY MARTIN ROSS FarmWeek

Midwest farmers are wellequipped and informed to develop the next wave of crop-based biofuels and do not need added regulations to maintain strides already made in soil conservation, according to a Farm Bureau policy analyst.

A week after President Obama touted energy security strategy emphasizing new domestic oil exploration and drilling, USDA and the U.S. Navy outlined a joint focus on Hawaiian biomass biofuels production and use.

The Navy’s Office of Naval

Research is providing $2 million per year through 2015 to support research for producing advanced biofuels from sugar cane, in partnership with USDA’s Agricultural Research Service. The project will identify strategies to supply feedstock for biorefineries to produce vehicle and jet fuels.

Last week’s announcement came as USDA concluded a public comment on implementation of the 2008 farm bill’s Biomass Crop Assistance Program (BCAP), which is intended to foster nationwide development of new feedstocks including crop residues, ag wastes, and new energy crops .

USDA Deputy Under Secretary Kathleen Merrigan told FarmWeek BCAP “is of great interest across the nation,” with USDA fielding more than 20,000 comments.

The deputy secretary acknowledged “we’ve got a lot to do” before issuing final program rules. “It will be very interesting to see if there’s some consensus around some key areas. That would allow us to move more quickly,” she said.

As an isolated, militarily strategic locale, Hawaii is a prime focus for homegrown biofuels development, but

American Farm Bureau Federation policy specialist Elizabeth Jones stressed BCAP and related policies must be “as farmer-friendly as possible.”

She urged USDA to remain “open-minded” in identifying “eligible materials” for biomass incentives and aware of farm conservation commitments in weighing the value of corn stover and other existing post-harvest feedstocks against concerns about removal of reduced/no-till crop residues from fields.

Some environmental groups have resisted stover removal and suggested USDA

impose additional conservation measures to ensure adequate residue management.

“Farmers are stewards of their land — they’re not going to be stupid,” Jones maintained. “Trust us to do our business as we’ve been doing it for years.”

BCAP provides direct matching payments to producers and other “material owners” who deliver biomass crops to a qualified conversion facility. The facility must use biomass to produce heat, power, biofuels, or bio-based products for themselves or others.

Researchers strive to ‘fix’ nitrogen issues in corn

Illinois 4-H in running for grant via online national fundraising

BY DANIEL GRANT FarmWeek

BY KAY SHIPMAN FarmWeek

Researchers at the University of Illinois believe they can help “fix” the problem of rising nitrogen costs and other issues related to fertilizer applications.

Kaustubh Bhalerao, U of I agricultural engineer, last week said technology may be available in the next five to seven years that would enable corn to fix its own nitrogen.

The new area of research that may change corn production in the future is synthetic biology. Synthetic biology combines science and engineering to create novel biological functions and systems.

“We’re rethinking a lot of different ideas we know about biotechnology, environment, and ecosystems,” Bhalerao told FarmWeek. “We’re going from understanding genes and how they work to actually putting them together in novel ways.”

Bhalerao’s research focuses on building systems in which bacteria behave like “amplifiers,” according to the U of I. Bacteria are the key ingredient that fixes nitrogen in soybean roots. Soybeans, as a result, are naturally high in nitrogen.

“Why don’t we teach corn how to do this?” Bhalerao asked.

“This would reduce the need for the application of petroleumbased fertilizers.”

U.S. farmers currently use an estimated 21 million tons of nitrogen, phosphate, and potash to fertilizer crops each year.

More than half of the nitrogen and roughly 80 percent of the potash used on U.S. farms is imported from other countries.

Bhalerao believes improved corn genetics could reduce input costs and the need to import fertilizer, reduce fertilizer runoff, and enhance food production.

“The energy needed to produce nitrogen fertilizer is becoming more expensive and likely will keep ascending,” he said.

“The next concern is the availability of nitrogen,” particularly in developing countries with poor infrastructure.

Experts estimate farmers worldwide must double food production by 2030 to keep up with the growing human population.

The food security issue “is not going to be solved with one miraculous solution,” the ag engineer said. “This is our contribution to this problem.”

However, farmers in the next decade likely will not be able to plant corn, wheat, or rice that can fix their own nitrogen even if the technology is available due to regulatory and public perception issues that could slow the rate of adoption.

“We have to interact with the public now rather than wait until the technology is available to tackle the public perception issue,” Bhalerao said.

In the meantime, corn hybrids that can use nitrogen more efficiently are in trials and could be commercially available in two to three years. Precision ag also can help farmers improve the efficiency of fertilizer applications, Bhalerao added.

Illinois 4-H could receive a bonus in addition to a share of money raised in the first 4-H texting fundraiser.

Through the end of April, the state 4-H that receives the most donations by mobile phone or in online donations at {www.4H.org} will receive a $5,000 grant from JC Penney, said Kristin Walter with the National 4-H Council.

Individuals may text CLOVER to 50555 to donate $10. Each donation will count as a state vote based on the donor’s area code. A one-time donation of $10 will be added to the donor’s mobile phone bill or will be deducted from any prepaid balance.

Participating wireless communication providers include AT&T, Verizon, T-Mobile, Sprint, and Nextel. All charges are billed by and payable to the donor’s service provider.

“We welcome people to support this effort,” said Angie Barnard, executive director of the Illinois 4-H Foundation. Barnard noted donors who go online may earmark their gift for Illinois.

The fundraising effort comes when the Extension Service and 4-H programs face tight budgets and possible cuts.

“This (budget problem) is happening to programs across the country,” Walter told FarmWeek. “The (National 4H) Council is doing what it can through texting and mobile giving and grants we provide to the states.”

National 4-H is piloting the text fundraising technology and will provide it later to states so they can use it on the state and county levels, Walter added.

For those with Facebook, additional information is available online at {www.facebook.com/4-H}. More than 90,000 people have become fans of the 4-H Facebook page that was launched last year.

Entomologists make 2010 pest predictions As corn and soybean producers look ahead to a new growing season, a universal question arises. What insects will pose a threat to crops this year?

Mike Gray, University of Illinois Extension entomologist, shares his predictions about Japanese beetles, soybean aphids, European corn borers, and western corn rootworms.

Japanese beetle infestations will continue to vex producers this year, Gray said. Despite the cold winter, snowcover across many areas of Illinois most likely served as a buffer and enhanced the survival of the overwintering grubs.

On the other hand, soybean aphid populations may be down. David Voegtlin, a retired entomologist with the Illinois Natural History Survey, said buckthorn leaves were “dripping” with aphids last fall.

“Not surprisingly, a fungal epizootic swept through this impressive aphid buildup on buckthorn and decimated the population,” Gray said. “Consequently, I anticipate a very small spring flight from buckthorn to soybean fields.”

The European corn borer reached all-time population lows across Illinois last year.

With such low overwintering numbers, Gray expects the spring flight of these insects to be hardly noticeable.

Almost every year, the western corn rootworm causes some management challenges, Gray said. However, densities were low in 2009.

“Considerable speculation has arisen regarding whether or not the large-scale increase in Bt usage may be suppressing corn rootworm populations, similar to what happened with European corn

borer densities,” he said.

“Because Bt hybrids targeted at corn rootworms are considered low-to-moderate dose in their toxic effects, I suspect environmental conditions last season served as the major contributor to the collapse of the corn rootworm population.”

Gray said the wet soil conditions last spring resulted in high mortality of western corn rootworm larvae soon after hatch occurred. Thus, he expects light to moderate infestations this year.

It’s too early to assess the potential impact of insects that migrate into Illinois — black cutworms, corn leaf aphids, potato leafhoppers, fall armyworms, and corn earworms.

For more information, read The Bulletin online at {http://ipm.illinois.edu/bulletin}.

FarmWeek Page 5 Monday, April 12, 2010

TRADE ISSUES

Broad-based strategy seen as key to Cuban reforms

BY MARTIN ROSS FarmWeek

Bipartisan lawmakers hope soon to take a major step toward instituting freer trade with Cuba and access to the island nation, its people, and its tourists.

Last week, House Ag Committee member Jo Ann Emerson (R-Mo.) cited Ag Chairman Collin Peterson’s (DMinn.) goal of an April committee vote on his Travel Restriction Reform and Export Enhancement Act. The measure would expand allowable travel between the U.S. and Communist Cuba and allow direct payment for U.S. goods between Cuban and

U.S. banks, rather than through other countries (see accompanying story).

It would attempt to ease sales by allowing payment and title transfer for goods before they are offloaded in Cuba, rather than before they are shipped.

Emerson outlined a multilayered strategy for building support for the bill, focusing initially on House Ag and Foreign Affairs Committee members.

She noted Foreign Affairs members Bill Delahunt (DMd.) and Jeff Flake (R-Ariz.) were “very instrumental” in developing travel provisions.

“Then we focus on mem-

bers of Congress who believe it’s our constitutional right to travel anywhere in the world and that nothing from our government should prevent us from doing that,” Emerson told FarmWeek.

“We have a large group of very conservative members who feel strongly about that.”

The House Ways and Means Committee, with primary trade jurisdiction, will be key to passage, with key members showing support.

However, Emerson predicted key Cuban-American lawmakers will “fight, fight, fight very hard against us.”

Rep. Lincoln Diaz-Balart (R-Fla.) recently blasted

River plan good for consumers, budget?

Midwest producers and shippers seek support for a plan that would refresh funding for new river construction — transport of corn, soybeans, fertilizer, coal, road salt, and the Illinois economy are riding on it.

Work needed to reopen Mississippi River Lock 25 north of St. Louis was near completion last week amid what Waterways Council Inc. Vice President Paul Rohde called “a much later season opener than usual for the Upper Miss.” Last year, Congress approved stimulus funds to repair the 600-foot lock.

At 70-plus years old, the lock is “no spring chicken” and has seen relatively little improvement over the years, Rohde noted in an RFD Radio-FarmWeek interview.

The site is one of five on the Upper Miss slated for modern 1,200-foot locks, but Congress has yet to clear funding for new construction.

Lawmakers also OK’d stimulus rehabilitation funds for

Lock 11 near Dubuque, the Melvin Price Lock at Alton, Lock 27 at Chain of Rocks, and the Illinois River’s crumbling Lockport Lock.

Rohde hoped that by clearing U.S. Corps of Engineer’s Upper Miss basin “backlog,” stimulus support might reduce competition for new construction funds for Lock 25, Lock 24 near Clarksville, Mo.; Lock 22 at Hannibal, Mo.; Lock 21 at Quincy; Lock 20 at Canton, Mo.; and Peoria and LaGrange locks on the Illinois.

However, the waning Inland Waterways Trust Fund — an industry pool fed by barge fuel taxes and used to match federal project dollars — remains a key obstacle to new lock funding.

This week, the federal advisory Inland Waterway Users Board is to consider an industry “capital development” plan that would boost per-gallon fuel taxes to generate a projected $110 million in added annual trust

fund revenues.

The Illinois Farm Bureaubacked plan is an alternative to what Rohde termed “a particularly onerous” administration-proposed per-barge, perlock fee. The industry plan would give the users board more input in Corps planning, fostering a “service providerand-customer” relationship, he said.

The plan, if approved, would move to Congress.

Many consumers are unaware users and shippers have been paying half of lock construction costs since 1986 and that efficient waterways transportation benefits “every member of the consuming public” — and taxpayer, Rohde maintained.

“Illinois Department of Transportation (IDOT) — all of the state DOTs of the Upper Midwest — need barges to bring in road salt in order to keep the cost of that salt low and keep IDOT and others from going bankrupt,” he said. — Martin Ross

Cuban leader Fidel Castro, who “wants the U.S. to apologize to him for having kept the U.S. market and its millions of tourists and its billions of dollars in financing from him.”

There has been no indication of resistance to the measure from House Speaker

Nancy Pelosi (D-Calif.), but Emerson was unsure of White House support, suggesting “this is going to be a legislative initiative at the moment.”

“At least we don’t have Senate filibuster rules — that makes it a little easier for us to get things done,” Emerson mused.

Bill addresses ‘convoluted’ U.S.-Cuban export dealings Restrictive U.S. Treasury policies and “convoluted” financial arrangements are linked to lackluster U.S. ag sales to Cuba, according to advocates of U.S.-Cuba reforms.

Texas A&M University ag economist Parr Rosson estimates current Cuban travel/trade proposals would boost U.S. exports by an annual $365 million while generating $1.1 billion a year in new economic activity and 6,000 new U.S. jobs.

Corn exports to Cuba were down 42 percent during the last quarter vs. 2009, with soy meal and wheat exports down 60 and 77 percent, respectively.

Improved Cuban access is key “now that we have additional competition there, the fact that we need to create jobs at home, and the fact that we’ve lost the dominance of U.S. (ag) products,” Rosson argued.

The Cuban trade agency ALIMPORT attributes declines to “the cumbersome financial arrangements we require of our exports,” he said.

Former North Dakota ag commissioner and National Farmers Union President Roger Johnson stressed “how convoluted the transactional relations are.”

North Dakota’s primary exports to Cuba have included peas and lentils. Producers “who wanted to make the deal” generally have needed to travel to Cuba as part of a state delegation, Johnson said.

After negotiating with ALIMPORT, producers shipped peas to a port near Cuba, “and then everything would sort of come to a stop,” he said.

Cuban payment was required prior to shipment, and under U.S. restrictions, Cuban buyers were compelled to wire money “usually to France or some other European bank that had zero U.S. ownership interest in it.”

“They would usually convert that money into a euro or some other foreign currency and then immediately reconvert that foreign currency into a U.S. dollar, and wire the U.S. dollar back to the bank that handled the account for my pea producer in North Dakota,” Johnson related.

“The bank who handled the account would then get permission from the U.S. Treasury Department to transfer that money into the account of my pea producer, and once that had happened, then my pea producer would call ALIMPORT and say, ‘We got the money — we can now release the ship.’

“As you can imagine, days go by, and you lose money at every step of that transaction. Every time you make a conversion, you lose money. And to do back-to-back conversions between three different currencies, you’re guaranteed to lose piles of money. That’s the process we use today.” — Martin Ross

New agricultural market dynamics prod highway proposals Federal transportation policy must reflect the impact of ag market consolidation, anticipated biofuels growth, and the continuing producer drive to identify — and haul assets to — more profitable markets, even across state lines.

So says American Farm Bureau Federation policy specialist Elizabeth Jones, noting Farm Bureau’s push for seasonal/short-haul interstate ag trucking exemptions in Congress’ forthcoming surface transportation reauthorization.

Of primary concern are commercial drivers license (CDL) “hours of service” rules limiting the number of consecutive hours a driver can operate a vehicle or truck goods following other work.

The long, irregular hours faced

by Illinois farmers last fall underline the special circumstances of ag truckers, Jones said.

“You’re not always driving, and farmers generally don’t go that far away from home,” she noted. “We’re not like longhaul truck drivers. Because we have a certain growing season, we need those extended hours to be able to get those crops out of the field within a certain timeframe.

“And as you have fewer grain elevators and cotton gins, you have even farther to go. CDL requirements aren’t as important to someone moving a lot of livestock, but if you have someone who’s retired or has a couple of

cows they take to market periodically, those are the people being fined $2,000 or $3,000 (for CDL violations). It’s more of a problem for your smaller producer.”

Illinois Farm Bureau transportation specialist Kevin Rund sees two basic approaches to addressing ag needs in congressional highway debate.

Given past court rulings, challenging the definition of “interstate commerce” (the basis for federal trucker regulations) as it applies to producers likely would prove “an uphill battle,” he said.

Lawmakers may be more amenable to an “out-and-out” exemption for producers who transport their own goods to market.

One approach would be to classify transportation of commodities from the farm to “the first point of market” as an in-state rather than an interstate movement, even when initial markets are across state lines. That would cover farmers with nearby out-ofstate terminals or other markets.

A second possibility would be to apply intrastate rather than interstate rules to all private carriers who do not cross state lines. That might garner broader congressional support, “but it would not take care of the farmer who lives close to and wants to haul across the state line,” Rund said.

Arguing for exemptions at

all could prove a challenge given congressional budget pressure. Rund noted the federal Unified Carrier Registration (UCR) Agreement, under which CDL licensees operate, is a revenue-generator, and some lawmakers thus may favor more stringent enforcement of UCR rules.

“I think we could probably show a pretty good case for exempting farm trucks that move from farm to market, even if we had to put a mileage limitation on it,” Rund said.

“Those typically are very small carriers, they’re relatively few in number, and consequently, the monetary ‘hit’ there would not be that significant.” — Martin Ross

FarmWeek Page 6 Monday, April 12, 2010

RURAL LIFE

Farmer combines ag, photography in pictures

BY KAY SHIPMAN FarmWeek

Mercer County farmer Michael Zecher believes farming and photography have points in common: “Both require patience, an understanding of science and technology, a love of what you do — and a

lot of cooperation from Mother Nature.”

Zecher should know. He farms 2,200 acres near Aledo with his father-in-law, Douglas McCaw, and squeezes time for his budding career as a photographer in between planting and harvest.

He’s been successful, although he’s relatively new at both.

This is Zecher’s third spring as a professional photographer since his work was first selected for exhibition in an Iowa art show.

He also started farming in 2009 after years of teaching high school agriculture and then working in the seed production business.

“Some people buy a Corvette in their mid-life crisis.

I decided to quit a great job with a stable company to start farming. I think the Corvette might have been cheaper,” he quipped. “What a year to start farming!”

Zecher applies his knowledge of farming to his selftaught photography skills. That is evident in his delicate photo of a soybean seedling emerging from the soil or a dramatic shot of a combine moving through a cornfield at dusk.

“I hope my love of agriculture is expressed through my photos,” he said.

The public’s interest in Zecher’s farm photos surprised the farmer-photographer, who grew up on a grain and livestock farm near Crescent City in Iroquois County.

“My agriculture pictures are among my best sellers. There are still a lot of people who have a connection to the farm,” he said. “The ag pictures generate the most interest (at art shows).”

Each year Zecher and his wife, Jennifer, exhibit in about a dozen art shows in Iowa and Illinois. Recently he participated in his first Chicago area art show and found people there were as interested in farm photos as people from smaller towns.

A patriotic barn in Iroquois County, Illinois, makes a summertime scene.

(Photograph copyright by Michael Zecher, Zecher Photography. All rights reserved.)

In addition to farm scenes, Zecher also has photographed wildlife and landscapes during trips to 22 national parks, 10 Caribbean islands, and four foreign countries. However, his farm scenes set him apart from the other photographers at the art shows, he noted.

As for simultaneously combining both jobs, while Zecher keeps a small camera in his truck at all times, he doesn’t have any cameras in the com-

bine or tractor cabs. He joked that situation has caused him to miss some spectacular photos, but added that he took those pictures with his mind.

Zecher, a member of the Mercer County Farm Bureau Marketing Committee, said he sometimes uses his farm photos to help educate people about agriculture. For example, his image of a soybean seedling surfaced several questions about soybean production.

Zecher’s next art show will be May 8-9 at the Beaux Art Fair in Davenport, Iowa.

Then he will take a break to get the crops planted before hitting the summer art shows and hearing visitors’ stories inspired by his farm photographs.

His next Illinois exhibit will be June 5 at Aledo’s Rhubarb Fest.

Zecher’s photos may be viewed in his online gallery at {www.zecherphoto.com}.

USDA crop report: Soy exports grow, but corn feed use declines

BY DANIEL GRANT FarmWeek

The USDA crop report on Friday was not a “major market event,” according to Brian Hoops, market analyst with Midwest Market Solutions.

The trade, instead, contin-

ues to deal with bearishness generated by the March 31 quarterly stocks and planting intentions reports that indicated crop supplies in the months ahead should be adequate if not plentiful.

USDA on Friday did, however, provide some positive news for the markets by raising soy exports for the eighth straight month, and it surprised some traders by boosting wheat exports and feed use.

The current soy export estimate is a record 1.445 billion bushels, up 13 percent from last year. Soybean ending stocks remained unchanged at 190 million bushels.

“The market already traded a lot of the bearish news (from the previous reports),” Hoops said during a teleconference hosted by the Minneapolis Grain Exchange.

“One commodity that could take off is old-crop soybeans,” he continued. “U.S. supplies are fairly tight, and if we get the price too cheap, demand could increase again.”

The season-average farm price for soybeans was projected at $9.20 to $9.70 per bushel.

Meanwhile, USDA lowered ending wheat stocks by 51 million bushels due mostly to a 40million-bushel increase in exports and a 10-million-bushel boost to feed use.

“The wheat stocks number still is burdensome, but it’s not as big as last month,” Hoops said.

The season-average price for wheat was projected at $4.85 to

$4.95 per bushel.

Elsewhere, USDA cut feed usage of corn by 100 million

FarmWeekNow.com View the latest monthly USDA supply-demand report and trade reaction comments at FarmWeekNow.com.

bushels as livestock producers in recent months trimmed the size of the national hog and cattle herds. Ending stocks subsequently increased by 100 million bushels.

“That is a little negative,” Hoops said.

On the bright side, Hoops projected feed usage will increase by the third and fourth quarters, and corn prices also could be pulled up by bullishness in the crude oil market.

China also indicated it may purchase corn to boost internal stocks.

“The crude oil price has been rallying (to an 18-month high last week), but corn has not kept up,” Hoops said.

“Eventually, it should lead to higher corn prices.”

The season-average corn price last week was projected at $3.50 to $3.70 per bushel.

USDA on Friday also boosted world production numbers for corn by 78.6 million bushels and beans by 58.7 million bushels compared to last month.

South American soybean production was projected at 1.9 billion bushels in Argentina and 2.4 billion bushels in Brazil.

FarmWeek Page 7 Monday, April 12, 2010

BRAZIL

Rains affecting harvest, delivery in Brazil

BY PHIL CORZINE

Last report of the season.

Harvest is under way at our farms in Brazil and it looks far too much like last fall’s harvest here — wet.

On April 6 we got 4.5 inches of rain, and the water was Phil Corzine over the bridges.

Luckily, even after a rain that

large, we’re normally back in the field the next afternoon if the sun shines — one benefit to having lots of clay in the soil.

Working around the rains, we have been able to get 25 percent of our beans harvested.

We only have final yield results from our first small field of 60 acres, which came in at 40 bushels per acre.

That’s 12 percent below our initial expectations, no doubt due to too many gaps in our rains.

Most of our beans are being

delivered to a Bunge facility 120 miles from our farms.

The first 24 miles are on clay roads, and the rains are creating havoc on that stretch.

We have the county road patrol out grading between rains to try to keep them pass-

able. Most of the trucks, all driven by independent operators, haul 700 to 800 bushels, but often have been loading lighter due to the roads.

Freight costs for the trip run around 55 cents per bushel.

We are delivering now on some contracts that we made two weeks ago at $7.60 per bushel. Prices today (April 8) are around $7.

There are lots of unknowns for Brazil for next year. How will near-breakeven prices for soy affect the next crop?

What will be the net result of Brazil forcing changes in the U.S. export and price support programs? And who will be Brazil’s next president.

The last time Brazil elected a new president, the real fell to 3.6 to the dollar, and an exchange rate of 3.6 could almost double soybean prices in Brazil.

Phil Corzine is general manager of South American Soy, a global production management and investment company. His e-mail address is pcorzine@agpage.com.

Illinois farmers eligible for share of conservation innovation grants USDA last week announced it will award $25 million in fiscal year 2010 for projects that would encourage adoption of innovative conservation practices and technology.

April 26 is the deadline to apply for the Conservation Innovation Grants (CIG) program that is administered by the Natural Resources Conservation Service (NRCS).

“The grants will assist producers in using market-based approaches to conservation

and innovative technologies that can put conservation on the land,“ said Agriculture Secretary Tom Vilsack.

USDA wants to find creative solutions for traditional conservation issues, as well as energy conservation, specialty crops, and climate change.

Grants also will fund projects to improve water, soil and air quality, improve nutrient management, and enhance wildlife habitat and pollinator populations.

Take safety precautions during lightning storms As the spring thunderstorm season arrives, farmers and others who work outdoors need to remember key safety precautions to avoid being struck by lightning.

Duane Friend, a University of Illinois Extension natural resources educator in the Springfield center, offered the following advice: Seek shelter immediately if a thunderstorm is within six miles or closer. To estimate the distance, count the time from when you first see lightning until you hear thunder. If that is 30 seconds or less, the thunderstorm is within six miles.

Do not stand under or next to a tree. If you cannot get indoors, crouch in the open and stay twice as far from a tree as it is tall.

A group of people who are outdoors should stand several yards away from one another. Don’t take shelter in an open pavilion or other small shelters unless they’re well grounded.

If you are indoors, avoid contact with corded phones or electrical equipment. Also avoid contact with plumbing, and do not lie on concrete floors or lean on concrete walls. Stay away from windows and doors, and stay off of porches. Lightning can enter a building through electrical and phone lines, plumbing pipes, or radio/television antennas — either from a direct strike or from wires or pipes that extend outside the structure.

Typical surge protectors will not protect equipment from a strike. During a storm, appliances and electronic equipment should be unplugged to the extent possible.

For more information on lightning and lightning safety, go to the National Oceanic and Atmospheric Administration lightning website at {www.lightningsafety.noaa.gov/overview.htm}.

Auction Calendar Mon., Apr. 12. 10 a.m. 192 Ac. Warren Co. Conrad and Liberta Taylor, ROSEVILLE, IL. Van Adkission Auction Service.

Sat., Apr. 17. 9:30 a.m. Construction Eq. and Real Estate. Fern and Rex Daily d.b.a. R.A.D. Excavators, DAHLGREN, IL. Jamie Scherrer Auction Co. www.jamiescherrerauction.com Sat., Apr. 17. 12 p.m. Fulton Co. Land Auction. The White Property, CUBA, IL. Lowderman Auction Co. www.lowderman.com Sun., Apr. 18. 10 a.m. Farm machinery.

Cletus Martin Estate, LENA, IL. Jim

Calhoun, Auctioneers. www.calhounauciton.com Tues., Apr. 20. 10:30 a.m. Ogle Co. Land Auction. George Schoen Trust, POLO, IL. Lenny Bryson, Auctioneer.

Fri., Apr. 23. 1 p.m. 143 +/- Ac. Knox Co. GALESBURG, IL. Westchester Auctions. www.westchester-auctions.com Sat., Apr. 24. 9 a.m. Equipment Auction.

Marvin Ton, EFFINGHAM, IL. Schmid Auction and Realty Co. www.schmidauction.com Sat., Apr. 24. 9 a.m. Consignment Auction. PECATONICA, IL. Jim Sacia, Dan Powers, Lenny Bryson and Cal Kaufman, Auctioneers. www.niteequip.com

The CIG program will fund one- to three-year projects that target innovative on-theground conservation, including pilot projects, and field demonstrations up to $1 million per project.

USDA will divide the $25 million into three categories: • $15 million for nationwide issues, such as energy conservation and climate change; • $5 million to address concerns within the Mississippi

River Basin — this will help USDA further advance its Mississippi River Basin Healthy Watersheds Initiative, which includes Illinois; and • $5 million for the Chesapeake Bay Watershed.

USDA will use a two-phase approach to award grants this year. Applicants must submit pre-proposals to NRCS’ national headquarters in Washington, D.C., by April 26.

Full applications for select-

ed pre-proposals must be submitted by June 4. All projects must include farmers who meet eligibility requirements for Environmental Quality Incentive Programs (EQIP).

For more information about eligibility requirements, go online to {www.nrcs.usda.gov/programs/eqip}.

For information and an electronic application for CIG, go online to {www.grants.gov}.

FarmWeek Page 8 Monday, April 12, 2010

PRODUCTION

Farmers advised to remain patient this planting season

BY DANIEL GRANT FarmWeek

Rain-weary farmers should remain patient this planting season despite a heavier workload, advised Emerson Nafziger, University of Illinois Extension crop systems specialist.

Otherwise, Ermerson Nafziger farmers who get in a hurry could lower their crop yield potential, increase the chance of soil compaction, and heighten their risk of an accident.

USDA this month projected Illinois farmers intend to plant 700,000 more acres of corn and soybeans this spring than they did last year.

Current projections call for the planting of 12.6 million acres of corn (up 5 percent from last year) and 9.5 million acres of beans (up 1 percent from last year) in Illinois this season.

“There’s not much reason at this point to expect a big swing in those (planting) intentions,” Nafziger said.

He noted farmers last year struggled to plant their crops yet still managed to produce average statewide yields of 174

bushels per acre for corn and 46 bushels per acre for soybeans.

“We can’t count on that (high yields after late planting) to be routine,” Nafziger said.

“But I don’t think we need to get out there in the mud, either.”

Nafziger believes the risk of soil compaction remains high and advised farmers to make sure they establish a good seedbed prior to planting. He was less concerned about the soil temperature after the recent warm spell.

“Making a good seedbed may be as simple as waiting a day or two until the soil is in

better shape,” he said.

Meanwhile, the determination of nitrogen rates should be no different this year. A corn nitrogen rate calculator that focuses on economics for each farm is available at {extension.agron.iastate.edu/soilfertility/ nrate.aspx}.

“I don’t think anybody will hold back corn acreage from the fear of not getting nitrogen on,” Nafziger said.

Farmers will apply nitrogen before, during, and after planting and also could switch to other forms, such as urea, to fertilize the corn crop.

Nafziger said the optimal time to plant corn in Illinois

typically is the last half of April, but farmers shouldn’t be confined to that time frame.

“We view the window as narrower than it really is,” he said. “Corn planted the first week of May often is quite fine and seldom has lower yields than corn planted a week early.”

The National Agricultural Statistics Service state office reported less than 1 percent of Illinois’ corn crop was planted as of the first of last week.

Meanwhile, oat planting was off to a good start at 45 percent complete compared to 13 percent last year and the fiveyear average of 18 percent.

2009 cash rents average $200-plus in 8 Illinois counties The average cash rent in Illinois from 2008 to 2009 was unchanged at $163 per acre, according to a survey conducted by the National Agricultural Statistics Service (NASS) Illinois field office.

However, the most recent survey of about 10,000

farmers in the state illustrated the high variability of cash rents paid throughout the state.

The average cash rent in 2009 surpassed $200 per acre in eight counties, with a high of $237 in Macon County, while in Southern Illinois rates averaged as low as

$66.50 per acre in Williamson County.

The seven other counties that averaged $200-plus cash rents in the state — Logan ($232), Sangamon ($223), Piatt ($218), Bureau ($210), McLean ($208), Christian ($206), and Champaign ($205) — have some of the

highest-producing soils in the state.

“Usually it (lease rates) boils down to what an acre is worth and what it’s capable of producing,” said Brad Schwab, state statistician.

Areas with some of the lesser-producing soils subsequently featured the lowest cash rents in the state.

The average rate last year was less than $100 per acre in 18 counties, which were located in the east-southeast, southwest, and south-

east portions of the state.

Last year was the second year NASS surveyed farmers about cash rental rates and published county averages. It started the survey due to industry demand for such information, according to Schwab.

He said NASS plans to post the 2010 averages this fall so farmers and landowners can use that information as guidelines to help determine cash rents for 2011. — Daniel Grant

FarmWeek Page 9 Monday, April 12, 2010

FB IN ACTION

FFA’ers participate in youth conference’s first career fair For the first time, a career fair was incorporated into the Illinois Farm Bureau & Affiliates Youth Conference held recently at the Decatur Conference Center and Hotel.

More than 525 FFA members, county Farm Bureau managers, and FFA advisers from 80 Illinois counties attended the conference, according to Mariah DaleAnderson, IFB youth activities manager.

FFA members who are high school sophomores and juniors chatted about scholarships, internships, leadership programs, and career opportunities with representatives of community colleges, universities, agriculture commodity groups, and IFB and its family of companies.

Conference attendees also participated in personal and career development breakout sessions that outlined opportunities in agriculture and provided information about IFB and its family of companies.

Richland College, Decatur, also provided tours of its mobile biodiesel lab.

Before attending the Youth Conference, FFA members were required to attend a local county Farm Bureau acquaintance program that provided them with information about IFB and its family of companies. The programs were conducted by counties throughout the state from September through February.

The annual two-day Youth Conference is sponsored by IFB and its affiliated companies, which include GROWMARK, Country Financial, Prairie Farms, and the IAA Credit Union.

For more information about IFB and affiliated companies’ youth education program, go online to {www.youthed.org} or {www.facebook.com/ilfbyea}.

FROM THE COUNTIES

C

UMBERLAND — The second annual National Trail “Old Capital Ride” poker run will begin at 10 a.m. June 19 in Collinsville and Marshall and riders will meet at noon in Vandalia. This is a fundraiser for ag literacy to support Bond, Clark, Cumberland, Effingham, Fayette, Jasper, Madison, and St. Clair counties. Those paying a $10 early bird entry fee

by May 19 will receive a Tshirt. Register online at {www.aglit.org} or any Farm Bureau office in the counties listed above.

EORIA — A defensive driving course will be from 9:30 a.m. to 2:30 p.m.

Wednesday and Thursday, April 21-22, at the Farm Bureau auditorium. Doug Sommer, safety specialist, will conduct the course. Cost is $10 for members. Call the Farm Bureau office at 6867070 for reservations or more information.

IATT — The Prime Timers will sponsor a bus trip Friday, April 23, to Sleepy Creek Vineyards. The bus will leave the Farm Bureau office at 9:15 a.m., eat lunch at the Beef House in Covington, Ind., and tour the winery.

Cost is $25. Call the Farm Bureau office at 762-2128 for reservations or more information.

P

P

W

INNEBAGO — Farm Bureau and Conserv FS will sponsor a used oil collection from 9 a.m. to noon Saturday at the Conserv FS location, Meridian Road. Members may bring up to a 55-gallon barrel of used oil. Call the Farm Bureau office at 962-0653 or Conserv FS at 964-5695 for more information.

• Farm Bureau will sponsor tours April 27 to the Historic Auto Museum, Roscoe; the Angel Museum, Beloit; and the Bushnell Wheeler Mansion, South Beloit. Lunch will be at the Asian Buffet. Cost is $39. Call the Farm Bureau office for more information.

“From the counties” items are submitted by county Farm Bureau managers. Call your Farm Bureau manager if you have an event or activity open to all members.

Above, Susan Moore, IAA Foundation director, discusses scholarships offered by the foundation with an FFA member at the recent Illinois Farm Bureau & Affiliates Youth Conference at the Decatur Conference Center and Hotel. A career fair was offered for the first time during the event. At right, Western Illinois University student Brett Gerace, right, chats with an FFA member. (Photos by Mariah Dale-Anderson, IFB youth activities manager)

FarmWeek Page 10 Monday, April 12, 2010

PROFITABILITY

Grain systems 2010: year of the dryer

BY RANDY HOLTHAUS

After the trials and tribulations of the fall of 2009, one producer comment we are hearing over and over is, “I will never get caught in that position again.”

Of course, the reference is to the Randy Holthaus inability to dry the 2009 crop, the long wait at the elevator, or the slow drying on the farm.

The grain systems sales sea-

son this year has been all about dryers. It seems that most producers are either considering a dryer, buying their first dryer, or replacing an existing dryer.

Dryer sales on every level are at all-time record highs with lead times at all manufacturers already extending into late summer or early fall.

Grain bin and material handling equipment sales are all running well ahead of last year.

The wholesale steel market has been creeping up since late fall as the steel industry has found a way to deplete inven-

tories and limit production in order to increase prices.

As seasonal winter discounts have played out, grain equipment prices are starting to increase. In the last month, we have seen 7 to 10 percent increases from some manufacturers.

If you have not locked in your grain system upgrade and/or expansion plans for this year, the window of opportunity is closing quickly.

Most dealers are reaching the point in which their labor schedules are nearly full. Manufacturer lead times are becoming prohibitive to secur-

ing equipment in time to install it before harvest.

There is still limited time to complete some projects, but the decision needs to be made now.

If you have missed the boat for this year, you can work on the decisions, planning, and design done this spring/summer and be on the schedule for next season.

As you make your decisions, reflect on the problems and issues your system had this past fall. Did your receiving keep the combine running?

Was your wet holding adequate?

Was your dryer able to keep up with your harvest rate?

Do you have a storage deficit? Does your aeration system adequately maintain the stored grain? Does your unloading system load the trucks in a timely manner?

Ask yourself these questions and address those problems now while they are fresh in your mind. It will be more difficult the longer you wait.

Randy Holthaus is GROWMARK’s grain systems marketing manager. His e-mail address is rholthaus@growmark.com

Oil, fuel prices accelerate to new 2010 highs

BY DANIEL GRANT FarmWeek

A run-up in the prices of crude oil and diesel fuel, which last week reached new highs for the year, likely isn’t a shortterm spike.

Instead, higher-priced oil and fuel likely is a sign of things to come. Demand is increasing at a time when refinery use is 15 to 20 percent below capacity, according to Harry Cooney, energy analyst with GROWMARK’s energy division.

“We’ve made new highs in crude,” Cooney said last week.

“We tend to rally (crude oil)

prices 80 percent of the time from winter into spring and early summer.”

Crude oil prices last week

‘Pump prices over $3 shouldn’t be a surprise at all.’

— Harry Cooney GROWMARK energy analyst

reached an 18-month high while the average U.S. diesel fuel price surpassed the $3-

M A R K E T FA C T S

Feeder pig prices reported to USDA*

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $34.75-$45.00 $39.84 $71.00 $71.00 $60.00 $60.00 This Week Last Week 11,788 11,056 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $72.69 $69.63 $53.79 $51.53

Change 3.06 2.26

USDA five-state area slaughter cattle price Steers Heifers

This week $99.73 $100.78

mark for the first time since November 2008.

The average nationwide price of diesel ($3.01 per gal-

(Thursday’s price) Prv. week Change $96.12 3.61 $96.08 4.70

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) This week Prev. week Change 111.68 107.98 3.70

Lamb prices Confirmed lamb and sheep sales This week 722 Last week 1,587 Last year 1,611 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $115-$120; 110-130 lbs., $118-$119. Good and choice 1-2: 30-60 lbs., $145.

Slaughter Ewes: Utility and good 1-3: $44-$46. Cull and utility 1-2: $33-$34.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 04-01-10 16.2 20.1 39.4 03-25-10 30.6 14.8 39.6 Last year 21.2 17.2 44.5 Season total 1253.8 708.4 1008.6 Previous season total 948.0 860.2 970.5 USDA projected total 1420 825 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

lon) and regular gasoline ($2.82 per gallon) last week both were about 80 cents higher than at the same time a year ago, according to the Energy Information Administration (EIA).

Cooney reported some speculators believe crude oil prices in coming months could surpass $90 per barrel. If so, the price of gasoline, diesel, and propane likely would trend up as well, Cooney said.

“Pump prices over $3 (for gasoline) shouldn’t be a surprise at all,” he said. “Demand is still under a couple years ago, but it’s a lot better than last year.”

Cooney believes even a slight rebound in the economy will drive increased demand for oil and fuel. Fuel use on the farm this spring also is expected to be high as farmers, who intend to plant more corn and soybean acres, also have to catch up on fieldwork.

EIA last week projected motor vehicle gas consumption this summer will increase by 40,000 barrels per day.

This comes at a time when the refinery use rate is projected to dip to 84.1 percent, which would be the lowest since 1985, according to EIA. Cooney explained the dropoff in refining by saying,

“Refinery profit margins the last six months have been poor” (due to a previous slump in fuel demand).

The bulls in the oil and fuel markets could be tempered in coming months, though, if the

U.S. dollar continues to rally, Cooney said.

He recommended farmers later this spring and summer look for opportunities to book some of their fall propane needs.

Monsanto may fall short of profit goal Monsanto, the world’s largest seed marketer, had a 17 percent decline in profits during the second quarter, the company reported last week.

Monsanto acknowledged it is unlikely to meet its goal of doubling its 2007 gross profit by 2012. Gross profit the past six months is down 30 percent or $1.2 billion, the company said.

“While there may be options to make an accelerated push for 2012, it’s clear to me that achieving the objective would involve making short-term choices that are not in the longrange interests of business,” said Hugh Grant, Monsanto CEO, in a company statement.

The price of many seed varieties escalated in recent years, but Monsanto’s profit margin was squeezed by a drop in the price of Roundup, its popular herbicide. Roundup prices have plunged worldwide as generic competition flooded the global market, the Associated Press reported.

Sales in Monsanto’s ag productivity segment, which includes herbicides and chemicals, declined 35 percent ($351 million) during the second quarter.

Overall, the company’s profit in the second quarter was $887 million compared to $1.09 billion during the same time last year.

FarmWeek Page 11 Monday, April 12, 2010

PROFITABILITY Corn Strategy

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

Some planting under way The exceptional, some might say unexpected, good weather over the past few weeks has made conditions good enough to allow some corn planting in scattered locations across the Midwest.

Probably one of the better harbingers of a better planting season this year than the last two has been the good early progress for oat planting across the upper Midwest. By Easter Sunday, Iowa farmers had 28 percent of their oat acreage planted, ahead of last year’s 7 percent and the average of 13 percent.

Other than in the South, corn planting has been limited enough that it doesn’t yet “show on the radar screen.”

Most of the activity over the last week where field conditions have been good enough has been field preparation and/or fertilizer application.

The opportunity to get a good start on fertilizer application is a benefit not only to

Basis charts

farmers but also the fertilizer industry. Because so little nitrogen was applied in central and northern Midwestern areas last fall, an inordinate amount was left to apply this spring.

With good weather allowing an early start to nitrogen application, the window of opportunity has been widened and that, in turn, is helping prevent spot shortages that would have occurred if the time frame had been compressed.

This week, most areas of the Midwest will pass the date on crop insurance policies regarding replanting provisions. If current long-range weather forecasts for warmer-than-normal temperatures and normal to slightly wetter-than-normal moisture hold up, corn planting will accelerate across the Corn Belt.

On the accompanying graphic, we have depicted the average pace of corn and soybean plantings for the five years prior to 2008. If current forecasts hold up for the next two weeks, corn planting might match the pace illustrated, suggesting 50 percent of the crop could be “in the ground” by May 1.

If planting goes that well, it will tilt the bias for yield expectations upward from 160 bushels per acre.

Good early planting progress also would tend to increase the chances of seeing more corn planted than the USDA projected in the recent prospective planting report. Since 2000, the average of corn plantings in the June report have risen 1 million acres from the March estimate.

The same could be said for soybeans, except for the planting change. They have tended to decline 600,000 acres from one report to the next since 2000.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

Cents per bu.

2009 crop: Prices surged last week on talk of possible Chinese corn imports. Technical factors played a part, too, with the market having just established a seven-week low.

Rallies will be muted by weak fundamentals. Our target of $3.65 on July futures was hit, pushing total sales to 75 percent. We might sell another 15 percent soon; possibly even complete them. Check the Cash Strategist Hotline daily.

2010 crop: Our target of $3.89 on December futures was triggered, lifting sales to 40 percent. Check the Cash Strategist Hotline frequently; we plan to be 50 percent priced by early May. Fundamentals: Corn has little fundamental friendly news being under the shadow of large, and growing, U.S. stocks and generally favorable w e a t h e r. We a r e h e a r i n g reports of scattered corn planting across the Midwest.

That talk will increase if the 6to 10-day weather forecast holds up.

Soybean Strategy 2009 crop: Even though South American supplies will increasingly soften demand for U.S. soybeans and products, supplies are still tight enough i n t h e s h o r t t e r m t o ke e p prices firm. Use rallies above $9.60 on July to make catch-up sales. We may wrap-up oldcrop sales if July pushes into the $9.70s; check the Cash Strategist Hotline frequently.

2010 crop: The recent surge carried prices high enough to lift sales to 30 percent. We might increase sales to 50 percent at any time.

Fundamentals: The new U.S. supply/demand numbers should help resolve some of the uncertainty surrounding U.S. supplies until the new crop arrives. South American har vest is g oing well with Brazil more than 75 percent complete and Argentina nearly 30 percent. Even with their production numbers being raised slightly, transportation and port capacity limitations s h o u l d a l l ow m o d e s t U. S.

exports to persist.

Wheat Strategy 2009 crop: Wheat prices were temporarily lifted by short-covering activity.

Still, without an unexpected cold wave, the market likely will maintain a downward bias through the spring months. Prices reached our $4.70 target in the May contract to wrap up old-crop sales. If you failed to pull the trig g er, use rallies for catch up sales.

2010 crop: Our $4.90

target on Chicago July futures to make an initial 25 percent sale was reached. We could advise additional sales at any time; check the Cash Strategist Hotline daily.

Fundamentals: Wheat continues to feel the pressure of large global supplies. In addition, prospects for the winter wheat crop continue to improve with the latest crop report indicating 65 percent of the crop was in good to excellent condition. That’s among the best initial spring ratings in the last 15 years.

FarmWeek Page 12 Monday, April 12, 2010

PERSPECTIVES

Resolving trade disputes would boost economy

LOWLY, BUT GREAT Throughout history, earthworms have made biggest impact on earth, life, and humans Did you know that Charles Darwin studied earthworms for decades? His final publication was a book detailing his studies of them called “The Formation of Vegetable Mould,” published in 1881. Earthworms are amazing creatures whose role in soil fertility and garden health are easily overlooked.

If you’re like me and shred a lot of papers, try composting them. If you put shredded paper in a compost pile, earthworms will come up and eat it, MARI digest it, and turn it into more LOEHRLEIN compost.

Paper is the No. 1 material to go to landfills, so this is a great way to reduce landfill use.

In her book “The Earth Moved,” Amy Stewart stated that earthworms existed as long as 350 million years ago.

Their ancestry lies in water-dwelling organisms, which helps explain their inability to withstand a dry environment.

They have survived the five major extinctions, and yet they are one of the least studied organisms. Many species of earthworms have yet to be methodically studied, catalogued, described, and named. To date, there are more than 4,500 species, and counting.

In Christopher Lloyd’s book “What on Earth Evolved?” the 100 most successful organisms were rated according to their overall impact on the earth, life, and people.

The No. 1 most successful species was — the earthworm.

According to Lloyd, there could be no human civilization if not for earthworms, due to their beneficial effects on soil fertility and aeration.

Darwin clearly concurred on the importance of earthworms. He wrote: “It may be doubted whether there are many other animals which have played so important a part in the history of the world as have these lowly organized

creatures.”

Darwin discovered, through careful observation, that earthworms recognized the most efficient way to take pine needles underground — by their joined ends rather than their tips. He also discovered that they could distinguish the most efficient way to pull a triangle of paper into the ground — by a corner rather than broadside.

Red wigglers and red worms are good composters that usually can be found at the local bait store. They prefer the rich organic environment of a compost pile to soil.

The common earthworm, or nightcrawler, prefers the soil environment. Earthworms build burrows in the soil and leave small mounds of castings near the entrances. They can ingest soil along with decaying organhe No. 1 ic matter.

There is a most sucdownside to cessful earthworms, species was — however. In the earthworm.

Minnesota, where there are no native ground-dwelling earthworms, discarded fishing worms have invaded the forest areas, wreaking havoc on the ecosystem.

Tree seed-lings, ferns, and wildflowers are threatened. In areas where earthworms have taken over, soil is eroding away, carrying valuable nutrients with it.

So, don’t throw away your unused fishing worms. Instead, take them home and start a compost pile or invest in a well-designed worm bin. The “gardener’s gold” you get will be well worth the small effort you put into it.

President Barack Obama has set an ambitious goal of doubling our exports and creating two million jobs in the next five years. That’s very encouraging. We need to do something about jobs with a 9.7 percent unemployment rate and a sputtering economy.

Let’s not kid ourselves.

JOHN That goal will BLOCK be very hard to achieve but now is the time to get started.

A good place to start would be to resolve a costly trade dispute that we have with Mexico. Mexico is one of our biggest markets in the world, but our refusal to live up to our obligations in the North American Free Trade Agreement (NAFTA) has cost us $2.6 billion in exports and 25,000 jobs.

Here is the history: The 1994 NAFTA provides that Mexican trucks can haul freight into and out of the U.S. That provision was supposed to be fully implemented by year 2000.

Congress, pushed by the Teamsters Union, would not allow the policy to take effect.

The Teamsters complained about safety, even though the Mexican trucks were required to meet the same standards as our own.

The dispute with Mexico has been going back and forth for 15 years. Now we are suffering with serious job losses.

Also, right now we are looking down the barrel at another potentially major retaliation by Brazil. We have less than 30 days to resolve that dispute that could result in major tariffs in our exports of cars, cotton, and ag products.

The Senate has spent years ignoring trade agreements that are already negotiated and ready to be enacted.

Agreements with Colombia, South Korea, and Panama could mean billions of dollars in exports and thousands of jobs for us. In addition, there is no time like the present to facilitate more trade with Cuba.

While we have been sitting on our hands, other countries have been signing trade agreements with Asian and South American countries. If we are serious about meeting the president’s goal of doubling trade, we had better get started.

President Obama says it’s all about “jobs, jobs, jobs,” so let’s get started.

I encourage you to access my website, which archives my radio commentaries dating back 10 years. It will go back 20 years when complete.

Check on what I said back then. Go to {www.johnblockreports.com}.

John Block of Gilson, a former U.S. agriculture secretary in the Reagan administration, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman, which specializes in ag issues. His e-mail address is jblock@ofwlaw.com.

T

Mari Loehrlein is a horticulture professor in the School of Agriculture at Western Illinois University, Macomb. Her e-mail address is MMLoehrlein@wiu.edu.

“I’ll stop saying you’re a nag, if you stop saying I always make a pig of myself.”