FarmWeek January 17 2011

BIOMASS CROPS FIGURE prominently in Ontario’s energy plans as the Canadian province will stop burning coal by 2013. ..........................8

THE TIGHT CROP SUPPLY got even tighter as the USDA trimmed its final production estimates for 2010 in last week’s report. .........................6

WINTER WHEAT SEEDINGS are projected to total 41 million acres, up 10 percent compared to a year ago but 5 percent below 2009. ..........10

Monday, January 17, 2011

Three sections Volume 39, No. 3

AFBF sues over EPA watershed plans

Delegates seek to hold regulators accountable

BY MARTIN ROSS FarmWeek

Farm Bureau is speaking out against growing regulatory overreach through Illinois-driven policy efforts and a suit challenging U.S. Environmental Protection Agency (EPA) plans to managing nutrient use in a major U.S. watershed.

A “sense of the delegate body” resolution delivered by Illinois Farm Bureau President Philip Nelson at last week’s American Farm Bureau Federation (AFBF) annual meeting cited “an aggressive (EPA) regulatory program that increasingly burdens the nation’s farmers and ranchers while ignoring their positive contributions to environmental protection.”

EPA National Pollutant Discharge Elimination System (NPDES) permits regulating pesticide use, “absurd” dust control measures, greenhouse gas rules, and “futile” endangered species mandates “endanger our industry,” AFBF President Bob Stallman told members. IFB’s unanimously approved resolution urges Congress to pursue “a vigorous program of oversight” of

EPA’s regulatory agenda.

“This sends clear direction that we want Congress to hold oversight hearings to rein in this regulatory agency and take it back to the intent of Congress,” Nelson said.

“We have a lot of concerns about what this agency has done in usurping state authority as it’s looked to put various river basins on nutrient diets, as well as about some of the permits being pushed by this agency — the dust permits, the NPDES permits.”

In a lawsuit filed January 10 in a Pennsylvania district court, AFBF challenged EPA’s authority to establish a total maximum daily load (TMDL) — a socalled “pollution diet” — for the eastern Chesapeake Bay region.

The TMDL defines how much nitrogen, phosphorous, and sediment can enter the bay, and EPA has set “allocations” for categories of “pollution” sources — in some cases, even individual operations.

EPA is demanding eastern states follow stringent watershed implementation plans,

regardless of cost, or face possible rejection of key federal permits or funding.

During policy debate at last week’s American Farm Bureau Federation annual meeting, Illinois Farm Bureau President Philip Nelson, left, delivered a “sense of the delegates” resolution seeking stronger congressional oversight of the U.S. Environmental Protection Agency. Seated are IFB Vice President Rich Guebert Jr. and IFB board member and delegate Dale Hadden of Jacksonville. (Photo by Martin Ross)

64,000-square-mile Chesapeake Bay watershed,” and warned the Mississippi River basin could be EPA’s next target.

AFBF regulatory specialist Don Parrish reported the AFBFled suit questions the “scientific underpinnings” of EPA’s plan and the models it used to develop it — models even EPA scientists have questioned.

“Let me first say what this lawsuit is not about,” Parrish told FarmWeek. “It’s not about making progress in cleaning up the bay. Farmers and ranchers in the Chesapeake Bay are actively implementing conservation practices. They’re using the conservation title of the farm bill, local conservation districts, efforts across the board.

“What this lawsuit is about is EPA overstepping its statutory authority. Congress prescribed approaches the agency is supposed to take. (EPA) has pushed the envelope and stepped over the line, and it needs to comply with the law.”

EPA “has rushed through See Regulators, page 4

Illinoisans to pay higher income taxes State estate tax decoupled

BY KAY SHIPMAN FarmWeek

Periodicals: Time Valued

Stallman argued “this (nutrient) diet threatens to starve agriculture out of the entire

Illinois will have higher personal and corporate income taxes and a reinstated state estate tax with a $2 million exemption as a result of legislation passed by the lame-duck General Assembly session and signed by Gov. Pat Quinn.

Illinois Farm Bureau opposed SB 2505, which proposed the tax increases and other funding changes. IFB had sought state spending reductions and opposed decoupling of the state estate tax from the federal estate tax.

“We were disappointed the package didn’t address accountability and reform to turn around our situation” said Illinois Farm Bureau President Philip Nelson.

“We also were very disappointed that in The personal income tax will increase the 11th hour the tax proposal added from 3 percent to 5 percent from 2011 decoupling of the state’s estate tax. We through 2014 and then gradually decrease worked hard to bring about changes on to 3.25 percent by 2025. In a similar manthe federal level and were optimistic that ner, the corporate income tax will increase the State of Illinois would stay coupled from 4.8 percent to 7 percent through with the federal level.

2014 and then gradually decrease FarmWeekNow.com (The federal estate to 4.8 percent by 2025. tax recently was rein- Listen to Gov. Pat Quinn’s In tandem with the income stituted with a $5 comments and IFB’s analysis tax hikes, lawmakers established million exemption.) o f t h e t a x p a c k a g e a t annual spending caps for the “The passage of FarmWeekNow.com. first four years of the increases, SB 2505 definitely according to Semlow. If state hurts efforts by the spending exceeds the caps for any Vision for Illinois Agriculture and others fiscal year, the personal income tax rate to turn around the business climate in this will go back to 3 percent with the corpostate,” Nelson said. “We will monitor rate rate returning to 4.8 percent. closely the implementation of the revIn the legislation, the Illinois auditor enues, what they are used for, and whether general was given broad powers to collect state spending falls under the spending information from state agencies and to caps established.” serve in a fiscal watchdog role. There are SB 2505 passed with a 60-57 vote in the House and a 30-29 vote in the Senate.

See Taxes, page 5

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, January 17, 2011

AFBF

Quick Takes RUTHERFORD TO CLOSE SATELLITE OFFICES — Illinois State Treasurer Dan Rutherford last week announced he will close all six satellite offices around the state as a cost-saving measure.

Treasurer offices in Collinsville, Effingham, Mt. Vernon, Riverdale, Rock Island, and Rockford are expected to close within the next 30 days. Each office has a fulltime employee.

Rutherford has said he plans to rely more on the Internet and telephone than physical offices to provide service to Illinoisans.

Ironically, the satellite offices originally were opened

by Gov. Pat Quinn during his term as state treasurer.

GIPSA REVISITED — U.S. Ag Secretary Tom Vilsack last week promised American Farm Bureau Federation (AFBF) annual meeting attendees that in the interest of “fair and open markets,” USDA Chief Economist Joe Glauber and his crew would thoroughly review issues related to some 62,000 comments on controversial draft Grain Inspection, Packers, and Stockyards Administration (GIPSA) rules.

“We will not move (on implementing final rules) until that is done,” said Vilsack, who reported USDA received “a full range of opinions and comments” on GIPSA proposals.

AFBF voting delegates approved policies seeking “separate and different” GIPSA rules for various livestock species, continued provisions that allow marketing arrangements between packers and producers, confidentiality of livestock contract information, firm legal thresholds for “proof of injury” related to specific livestock market practices, and a USDA economic impact study of new rules.

E15 PRESSURE MOUNTS — As a group of U.S. senators pushed the U.S. Environmental Protection Agency (EPA) to withdraw its approval for 15 percent ethanol (E15) gasoline use, American Farm Bureau Federation delegates supported efforts to educate consumers and the industry on the benefits of “biofuels blends higher than 10 percent.”

Delegates also advocated legislation requiring all new gas-powered vehicles be “flex-fuel,” capable of running on higher-level ethanol blends, and supported a transition from federal ethanol tax credits to development of multi-blend ethanol “blender pumps,” ethanol pipelines, and other biofuels infrastructure.

On Jan. 6, a bipartisan group of nine U.S. senators urged EPA to overturn its decision to allow E15 in 2007 and later vehicles, arguing the agency’s decision “to allow the use of an even higher level of ethanol … for some types of vehicles fails to adequately protect against misfueling and will add unnecessary confusion at the gas pump for consumers.”

(ISSN0197-6680) Vol. 39 No. 3

January 17, 2011

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Vilsack cites USDA push to sell the U.S. ‘brand’

BY MARTIN ROSS FarmWeek

Ag Secretary Tom Vilsack last week highlighted administration efforts to “export the American brand” by opening protected foreign markets, knocking down export barriers, and resolving disputes with Tom Vilsack Mexico and others that threaten amicable trade.

Addressing an American Farm Bureau Federation (AFBF) audience, Vilsack stressed a federal commitment to pitching U.S. goods as “the best food at the most affordable prices.” He urged Congress to act “appropriately and quickly” on a long-awaited U.S.-South Korea free trade agreement (FTA).

At an AFBF forum preceding the organization’s annual meeting, South Korean ambassador to the U.S. Han DukSoo expressed hope the accord would be finalized by July “at the latest.”

Han said he sees all U.S. sectors benefiting from the newly fine-tuned FTA, but he argued agriculture would gain the most “because America’s

farmers and ranchers are the most productive, the most efficient, and the most profitable in the world.”

Vilsack said a record U.S. ag trade surplus has helped “bring wealth into our communities, into our country.”

“I think Farm Bureau members and rural America are saying we have to be a government that spends less and that spends our resources responsibly,” he said. “We have to be an economy that makes and creates and innovates again, and we have to be a country that exports.

“If we’re able to do that, we’ll be able to reduce the responsibilities of the next generation, we’ll be able to increase productivity in agriculture and other aspects of the economy, and we’ll be able to export the American brand to bring wealth here and rebuild the middle class.”

Vilsack stressed USDA’s approach of “looking at individual countries as individual markets,” noting “not every country’s the same on the market continuum.”

That means courting emerging giants such as China (reportedly $0.5 of a billion a year away from surpassing Canada as the U.S.’ No. 1 ag buyer) while pressing India

for a “free flow of goods and services” and nursing Afghani incomes and buying power via production of crops other than opium poppies.

USDA Under Secretary Jim Miller was in China last week to address barriers to U.S. beef. Vilsack and his Mexican counterpart huddled last month over roadblocks to U.S. beef and potatoes, and he hailed Transportation Secretary Ray LaHood’s work on a framework for addressing federal trucking rules that have spurred Mexican tariffs against U.S. goods.

The proposal would allow select Mexican trucks to cross the border beyond a 20-mile “commercial restriction” zone.

Talks continue with “mature” partners such as Japan, and Vilsack hopes “trans-Pacific” discussions will generate key opportunities in Southeast Asia. He urged Congress to include “a good, strong trade section” in the next farm bill.

“We need to make sure that as we fashion a farm bill, as we put together an understanding of what it takes to support agriculture in this country, that we don’t forget that one out of every 12 jobs in this country is connected to agriculture,” Vilsack emphasized.

Canadians seek changes in COOL As a global panel nears a decision on U.S. country of origin labeling (COOL) rules, a Canadian ag attaché offers two possible ways to remove the chill the rules purportedly have placed on U.S. and Canadian markets.

A World Trade Organization (WTO) dispute panel is expected by July to rule on Canada’s complaint against U.S. mandatory retail meat labeling rules. COOL was established with the 2002 farm bill and expanded to include fruits, nuts, and vegetables in 2008 ag policy.

At last week’s American Farm Bureau Federation (AFBF) annual meeting, attaché Pamela Rose told FarmWeek, “We don’t see COOL as a good program for either Canada or the U.S.,” given the unusual livestock/meat traffic over their joint borders and Canada’s role in helping U.S. processors keep a steady supply line.

“We feel we have a good case,” she said.

“We’re obviously hoping for a positive outcome in that regard. With that happening, Congress would be asked to look at that ruling and how it applies to the COOL program and consider changes.

“Two of the options we are suggesting that would be workable would be to have COOL as a voluntary program or, if preferred, to have it understood that slaughter (rather than birth) confers ‘origin.’ ” Neither would prevent sale of beef identified as “born, raised, and slaughtered here in the

U.S.,” Rose said. Canada embraces domestic product labeling, but she said its program follows global standards “that don’t discriminate against imports,” while “onerous” U.S. certification/tracking requirements hurt Canadian cattle and hog producers.

AFBF delegates last week reaffirmed support for COOL while recommending its expansion to honey and dry beans.

Traditionally, the U.S.-Canadian market has operated in “a fairly integrated way,” with animals moving freely across borders with supply-demand fluctuations or U.S. cattle fed in Canada and returned for U.S. slaughter, she said.

Northern-tier U.S. processors have relied on Canadian animals to smooth bumps in supply, but with COOL segregation and tracking requirements, Rose said, “They can no longer top off a line, which had made them more efficient.”

In turn, Canadian Cattlemen’s Association President John Masswohl reported Canadian processors have adopted U.S. packer discounts on Canadian animals related to COOL costs.

Rose prefers to see COOL changed “as soon as possible,” but recognizes the 2012 farm bill would be the likely mechanism for any COOL adjustments.

“People will need time to contemplate this, and we’re here willing to work and have that dialogue, to do whatever it takes,” she said. — Martin Ross

Page 3 Monday, January 17, 2011 FarmWeek

AFBF

Compromise sets stage for farm bill debate

BY MARTIN ROSS FarmWeek

After bumping heads in Georgia, farmers from across the nation came to one conflicted mind over 2012 farm bill needs.

Following animated debate highlighting the largely Midwest/Southern divide over the Average Crop Revenue Election (ACRE) program, delegates at the American Farm Bureau Federation’s (AFBF) annual meeting in Atlanta were able to agree to what Illinois Farm Bureau President Philip Nelson termed a “menu list” of basic commodity program principles.

Heavily echoing IFB policy recommendations, that list emphasizes continuation of direct payments and conservation programs, expansion of crop insurance, and a simplified ACRE program. Delegates indicated they hope to hold current ag budget baselines despite anticipated deficit reduction pressures.

“I think we put together a pretty decent framework for us to start deliberations on the farm bill,” said Nelson as AFBF discussions concluded. “With

that, we gave direction to where we need to be headed as we begin those talks in 2011.”

Members recognized something likely will have to give in the congressional debate ahead — visiting Ag Secretary Tom Vilsack told the gathering, “When we’re talking about having to reduce deficits, we’re going to have to

FarmWeekNow.com Listen to President Nelson’s comments about the AFBF policy debate on the farm bill at FarmWeekNow.com.

make difficult choices.”

Vilsack promised “we’re going to have a conversation about the safety net — and there’s no question we need a safety net,” but he touted the need for producers to “give back,” even “when we’re faced with difficult decisions about farm bills, deficits, and longterm economic opportunities.”

As individual states came forward in defense of countercyclical payments, marketing loans, and other current program elements, Indiana Farm Bureau President Don Villwock warned the AFBF list “could

Rowe: Farmers must unite to defend vital ‘dirty’ job Mike Rowe will eagerly testify that agriculture is a dirty and, frequently, thankless job. He wants Americans to know cheap, plentiful food comes from calloused hands, sweat equity, and a venerable work ethic.

The one job the host of the cable reality program Dirty Jobs doesn’t relish is that of ag spokesman. He prefers to leave that chore to the guys on the farm who must contend with “a lot of other agendas and a lot of angry acronyms.”

Producers must unite behind a few basic messages “in a way I haven’t seen them get behind,” Rowe argued before taking the stage at the American Farm Bureau Federation (AFBF) annual meeting in Atlanta.

AFBF President Bob Stallman, meanwhile, Mike Rowe told producers “we are ready to face our opponents with a new attitude,” through a new U.S. Farmers and Ranchers Alliance. The alliance’s 23 ag groups will attempt “to increase consumer knowledge and restore trust in our nation’s food production system.”

Rowe embraces that mission in his own good-humored way but argues farmers don’t need a spokesman so much as “they need an advocate” — consumers like himself “who have an addiction to chewing and swallowing.”

Indeed, “connecting with the dirt” is Rowe’s mantra.

“Farmers were the essence of our Gross Domestic Product (GDP) 100 years ago — we loved our dirty farmers,” Rowe said.

“Today, our GDP is defined by something else altogether — we don’t have a relationship with dirt. We are not connected to the people who are willing to get dirty.”

“The trick, if there is one today, is just to hit the reset button and remind people in a thousand different ways of the amazingly gob-smacked task you guys do, day-in and day-out, which is feeding 300 million people three times.”

Rowe was not alone in his support for food producers.

Stressing the need for federal outreach with both consumers and farmers, Elizabeth Hagen, USDA under secretary for food safety and an AFBF guest, labeled the Farm and Ranch Alliance “a great example of what it takes to make an impact.”

Rowe recalled perhaps his dirtiest job ever: paddling across a “poo pond” at a Connecticut dairy operation. Owner Matt Freund makes ends meet by marketing soil-fertilizing, biodegradable, flowerpots fashioned from manure, and Rowe learned a lesson in farm income and innovation.

“He was on the ropes and needed to supplement the milk he was selling,” Rowe recalled.

turn into a Christmas tree” laden with budget-cutting targets. Others were frustrated that the relatively small ag budget should come in for further cuts.

“We’re saying that for the most part, we don’t want to give up a whole lot until we see the rest of the budget give something up,” Texas delegate Richard Cortese stated.

IFB fought hard to retain ACRE as an AFBF priority.

South Carolina Farm Bureau President David Winkles argued ACRE “just doesn’t work well in the Southeast,” calling it a “one-size-fits-all” program.

But Carlyle delegate Darryl Brinkmann deemed ACRE “something we need in our tool chest,” even if “it is a little complicated at times,” and Oklahoma’s Sheila Wilder Hoke maintained ACRE “has been wonderful for us,” providing a “true safety net … when we need it.”

Delegates embraced basic principles of the National Milk Producers Federation’s proposed Foundation for the Future plan, including “margin protection” against feed and milk price volatility and expan-

sion of dairy export assistance.

But while delegates rejected mandatory dairy quotas, IFB unsuccessfully fought proposals to accept “temporary” dairy supply management measures that South Elgin delegate Mike Kenyon branded “a 180-degree turn from our current marketoriented organization.”

“How long will ‘temporary’ last?” fellow critic Donna Kerr of Virginia demanded, to no avail.

Delegates nonetheless rejected a proposed five-year “phase-in” of any new dairy policies. Utah’s Leland Hogan cited “the turmoil the dairy industry’s been going through,” arguing producers need to be weaned from current supports “on a step-by-step basis,” but Kentucky’s Ken Mattingly warned the industry faces further trials “if we keep on doing what we’ve always done.”

Illinois producers fought with mixed results to restore key portions removed from a heavily overhauled risk management policy, including many priority provisions based on IFB recommendations.

Vilsack noted USDA’s recent initial shot at deficit reduction —

redirecting $4 billion from crop insurer payments under the Risk Management Agency’s standard reinsurance agreement (SRA).

A portion of an added $2 billion cut through the SRA may fund a proposed new “good performer” premium discount for producers with no or few recent claims.

But producers reluctantly dismissed a proposal demanding lawmakers count SRA cuts toward forthcoming ag budget reductions. “In all practicality, I don’t think we’ll get any credit for that,” Indiana’s Villwock said.

Nelson said he believes delegate “confusion” led to AFBF support for linking crop coverage to farm program eligibility.

IFB Vice President Rich Guebert Jr. said some producers rely on marketing programs, contracting, diversification, and the like rather than necessarily on formal crop insurance.

“Even though a lot of our producers in Illinois do take crop insurance, we still have a pretty good pocket of people who do not,” Nelson noted. “I think, as time goes by, we’ll go back and revisit this (provision).”

AFBF honoree Thompson sees geographical shift As Farm Bureau members from across the U.S. attempted to reconcile regional differences over future farm policy, a top ag economist cited a potentially key geographical shift that could strongly influence 2012 farm bill direction.

Robert Thompson, former University of Illinois Gardner Chair for Agricultural Policy, accepted the American Farm Bureau Federation’s (AFBF) Distinguished Service Award last week, a month after receiving similar honors from Illinois Farm Bureau.

Thompson, who helped craft Robert Thompson the 1985 farm bill, sees “an awful lot of educational work to be done” before Congress can tackle the 2012 farm bill.

Nearly three-quarters of the U.S. House Ag Committee, including Illinois freshmen Republicans Bobby Schilling of Colona and Randy Hultgren of Winfield, have never been involved in the farm bill “experience,” he noted.

But Thompson sees a change in ag committee composition that may affect the tenor of the debate, starting with Senate Ag Committee ranking Republican Saxby Chambliss’ (R-Ga.) succession by Sen. Pat Roberts (R-Kan.), a former House Ag Committee chairman.

Chambliss, who told AFBF his colleagues face “the most difficult farm bill we’ve ever had to write,” is new minority leader of the Senate Intelligence Committee.

Thompson said the Southeast “tends to dominate the decision-making” within AFBF, in terms of state voting weight, but he sees corn and soybean producers gaining footing with cotton, rice, and sugar interests on the Hill this session.

Beyond Roberts, Michigan Democrat Debbie

Stabenow takes the reins of the Senate Ag Committee from former Sen. Blanche Lincoln (DArk.).

“Leadership of the ag committees has migrated farther north,” he said. “There’s been a significant geographical migration of leadership at the ag committees.”

Meanwhile, Oklahoma Democrat Frank Lucas will head the House Ag Committee, with former chairman Collin Peterson (D-Minn.) now serving as ranking Democrat.

Ag policy rookies join the debate amid heightened fiscal anxiety. Thompson argued Congress must address deficit issues in order to “sustain our credibility in the world financial market” and head off the current “eventuality” of China and other U.S. creditors demanding higher interest rates.

“They’re going to begin to doubt our willingness and ability to repay our international debts, at least with dollars that aren’t deflated by inflation,” he advised.

In view of budget constraints, public discussion of direct payments is “heating up,” Thompson noted. Lucas last week defended direct payments as “the most (World Trade Organization) compliant, least trade distorting” of U.S. ag supports. But Thompson cited increased scrutiny of support payments “that go out in good years and bad.”

If direct payments are “a sitting duck,” as Thompson suggests, Congress must develop “the right kind of safety net for America’s farmers,” Chambliss emphasized.

But legislators face a tough challenge in devising the most effective combination of countercyclical and loan deficiency payments, crop insurance subsidies, and disaster payments that make “the most sense in a world of tight budgets,” Thompson argued. — Martin Ross

FarmWeek Page 4 Monday, January 17, 2011

AFBF

‘Overreach’ threat to farmers, towns nationwide

BY MARTIN ROSS FarmWeek

In Roberta Valladao’s neck of Oregon, regulatory “overreach” has reached into the pockets of farmers and rural car dealers, florists, and others who rely on the ag economy.

Valladao, a guest at Illinois Farm Bureau’s annual American Farm Bureau Federation (AFBF) breakfast, outlined the “domino effect” of federal efforts to protect long- and short-nosed sucker fish around her Klamath Falls area.

Area growers rely on irrigation during low-water periods which also can hamper fish spawning. Officials control local water releases, and growers may not know if water will

be available until April. Banks hesitate to grant farm loans “if they’re not sure they’re going to get water,” Valladao said.

“After (protection efforts) happened, there was a sevenfold change in the economy,” she told FarmWeek. “For each (farm) dollar that wasn’t spent, $7 wasn’t spent in other businesses. It wasn’t just farmers who felt the effect. People were being laid off.

“The auto dealers (formerly) gave you a bouquet of flowers when you bought a car. Because they weren’t selling cars, they weren’t buying flowers. Local florists weren’t selling the amount of flowers they used to. It’s a chain reaction.”

The sucker fish’s tendency to burrow makes it tough to track populations and thus hampers progress toward “delisting” it under the Endangered Species Act. Federal success at Klamath Lakes has led to what Valladao calls a “divide-and-conquer” strategy targeting other West Coast communities.

The non-profit Pacific Legal Foundation (PLF) was launched 37 years ago to help rein in onerous regulation.

PLF’s J. Michael Stetson noted his foundation’s concern with Chesapeake Bay nutrient standards and similar Florida proposals “which are going to affect the whole country.”

PLF represents Florida builders against the U.S. Fish

and Wildlife Service, which rejected a court order to downgrade the endangered Florida wood stork to threatened status following a longdelayed species survey.

Such “regulatory takings” effectively block land use, noted Stetson, who also attended the AFBF annual meeting.

PLF won a landmark 2006 U.S. Supreme Court case, Rapanos vs. the U.S. Army Corps

of Engineers, which restricted federal jurisdiction over isolated “wetlands.”

Regulators nonetheless continue to “ignore that decision,” Stetson said.

“There are really two avenues for the citizen to try to beat an overreaching government,” he said. “One’s at the ballot box, as we saw in the last election. The second is in the courts.”

Regulating the regulators In addition to broader provisions seeking legislative control of federal regulators, American Farm Bureau delegates concerned about the federal regulatory reach also: • Opposed any federal programs taking over “private sector responsibilities.”

• Declared that property acquired by the U.S. government through eminent domain or other means but no longer intended for the use for which it was taken should be returned to the private sector. The original owner should be given first right of refusal, delegates maintained.

• Supported classification of farm program payments as “personal financial information,” such as Social Security payments.

• Supported requiring the U.S. Environmental Protection Agency (EPA) to recognize existing state ag stewardship practices when setting total maximum daily loads for producers.

• Urged use of the Federal Insecticide, Fungicide, and Rodenticide Act as “the sole federal regulatory authority over pesticides.”

• Sought required EPA/USDA coordination in developing conservation or clean air rules that affect agriculture.

• Stressed the need for EPA confidentiality of farmer business and individual information.

• Opposed food safety traceability being extended to the field or input level. Any traceability program should be “non-intrusive and economically feasible,” delegates stated.

• Opposed any change in wording, meaning, or definitions regarding “navigable waters” with regard to enforcement or interpretation of the federal Clean Water Act. Delegates addressed concerns about efforts to broaden federal jurisdiction over ditches or other isolated local waters.

Delegates seek options for post-patent GMO use During delegate debate at the American Farm Bureau Federation annual meeting in Georgia last week, Illinois Farm Bureau won approval, 207-124, for support of “an industry-developed protocol” for biotech crops before product patents expire.

In 2014, patents on Monsanto’s original Roundup Ready (RR1) soybean trait expire and RR1 moves into the public domain. Noting more than two dozen GMO products are set to come off-patent in coming years, Indiana Farm Bureau President Don Villwock told delegates clear direction on post-patent product use is crucial “so we have a choice.”

Seed companies and breeders reportedly can continue offering RR1 beans on a “generic” basis after patents expire, and farmers will have options for saving RR1 seed to replant beginning in 2015. But patent expiration may not allow growers to “save seed” from all varieties with RR1 traits.

A Massachusetts delegate questioned companies “being forced to share information about a product before it goes off-patent.” A California colleague called disposition of currently patented products “very much a business decision for companies.”

But IFB President Philip Nelson emphasized new policy

REGULATORS Continued from page 1 this process,” conducting a 45-day public review period for its 1,000-plus-page plan without inviting producer input, he said.

Parrish noted a roughly 20 percent difference between EPA and USDA estimates of ag land within the watershed, raising doubts about EPA’s ability to prescribe limits on “a very precise basis.”

Meanwhile, Illinois groups continue to voice concerns about EPAdirected state NPDES pesticide application permits set to kick in in April, despite existing pesticide regulation under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). Parrish anticipates major ag groups joining soon “to tell Congress there’s a problem here.”

“We’re going to come out swinging, and, hopefully, we can get Congress’ attention,” he said.

merely urges “voluntary industry cooperation to share data.”

As such, Villwock argued “it’s not dictating patent law.”

“This puts us at the table,” Nelson said. “We’re hearing from a lot of producers the concerns they have about this.

As a number of these patents expire, I think we need to give clarity as to how we address the technology for our members.”

Monsanto has licensed RR1 to some 200 other companies, and growers will need to check with seed suppliers before replanting saved seed. With companies moving to a newer “RR2” trait, patent expiration raises questions on future availability of RR1-inclusive varieties growers may prefer.

“If you want continued access to RR1 soybean varieties, other varieties that contain the RR1 trait or that contain additional modes of herbicide tolerance, you should make your wishes known,” Illinois Soybean Association Chairman Ron Moore of Roseville advised.

“Both public and private seed researchers may be able to create generic RR1 stand-alone varieties but need to know whether demand for RR1-trait seed will continue.” — Martin Ross

Illinois Farm Bureau President Philip Nelson, left, accepts the American Farm Bureau Federation (AFBF) Pinnacle Award from AFBF President Bob Stallman during the national organization’s 2011 annual meeting last week in Georgia. IFB received Awards for Excellence recognition in five program areas: Agriculture Education and Promotion, Leadership Development, Member Services, Policy Implementation, and Public Relations and Information. IFB received President’s Awards honors for Leadership Development, Member Services, and Policy Implementation. The Pinnacle Award is presented to the one top state in each of Farm Bureau’s six membership groups and is based on top total points earned in the five program areas. IFB won in Group 6, which includes the nation’s largest state Farm Bureaus. In addition, IFB achieved the APEX Award from the AFBF Foundation for Agriculture. The APEX Award is for states with a total donation to the Foundation that increased by 10 percent or more over the previous year. And IFB attained AFBF membership quota and an all-time high in total membership with 426,043 members, a gain of 4,123 over 2009. (Photo by Ken Kashian)

Illinois recognitions Illinois Farm Bureau received strong recognition for its members’ youth leadership and farm innovation at last week’s American Farm Bureau Federation (AFBF) annual meeting.

Efforts were cited in several areas: Farmer Idea Exchange: Rory Frick, Aledo, was honored for the “most innovative” and “most widely usable” concepts in the national competition. His multi-functional ladder’s steps remain parallel to surfaces at any inclination, offering safe, easy access to farm vehicles and facilities.

County Activities of Excellence: AFBF cited Stephenson County Farm Bureau’s “A Day in the Country” program. The county Farm Bureau chartered a bus to bring an “adopted” Chicago legislator and urban constituents to Stephenson County, where participants toured an 850-cow dairy farm with a methane digester, a 1,800-acre family farm, and a 1.1 millionhen egg farm that markets manure as organic fertilizer.

Young Farmers and Ranchers Achievement Award: Matt DeBlock, Mercer County, represented Illinois in this year’s Achievement Award competition, which recognizes exceptional efforts in farming and leadership achievements.

As one of the national runners-up, DeBlock will receive a Case IH Farmall tractor, courtesy of Case IH. Young Farmers and Ranchers Excellence in Ag Award: Brian and Dacia Brown, Montgomery County, were national runners-up for this award, which recognizes those whose primary interest is not production agriculture but who have excelled in leadership and contributions to their community, Farm Bureau, and the ag industry.

The Browns received a $6,000 savings bond and a Farm Boss chainsaw courtesy of Stihl.

Young Farmer and Rancher Discussion Meet: Grant Strom, Knox County, represented Illinois in this year’s meet, which offers young leaders the opportunity to develop skills in basic discussion technique through an exchange of ideas and information. Strom made it to the Sweet 16 round.

Page 5 Monday, January 17, 2011 FarmWeek

GOVERNMENT

Taylorville energy center State Board of Ed seeks to restore funding ISBE also is recommending an increase in The Illinois State Board of Education legislation stalls in Senate (ISBE) funding for mandated educational services, last week approved a fiscal year 2012

BY KAY SHIPMAN FarmWeek

An early-morning effort to establish a special electric rate to create a clean-coal plant in Christian County failed in the Senate last week.

The project, known as the Taylorville Energy Center (TEC), is backed by Tenaska Energy of Nebraska.

Illinois Farm Bureau opposed the legislation, which would have mandated 30-year utility rate increases to fund the project.

IFB also opposed the granting of eminent domain for the TEC or supporting services for the TEC. Very late on Jan. 7, the Senate sponsors presented the bill, but it was defeated with a 25-29 vote and was placed on postponed consideration, which allows a bill to be called for a second vote.

At 1:30 a.m. last Wednesday, the Senate brought the bill up for a second vote — the final one of the lame duck session.

After a short debate, the bill was defeated in a 18-33 vote with four voting present.

DATEBOOK Jan. 19 Livestock manager certification workshop, 8:15 a.m., Knox County Extension office, Galesburg.

Jan. 20 Livestock manager certification workshop, 8:15 a.m., Adams-Brown Extension office, Quincy.

Jan. 25 Tillage seminar, 8:30 a.m. to 3:15 p.m., Parkland College, Champaign.

Illinois Milk Producers Association educational program, 9:30 a.m. to 3 p.m., Kaskaskia College, Centralia.

Jan. 26-27 Illinois Crop Management conference, Rend Lake Conference Center. 618-692-9434, ext. 13 Jan. 26 Illinois Milk Producers Association educational program, 9:30 a.m. to 3 p.m., IAA Building, Bloomington.

Jan. 27 Tillage seminar, 8:30 a.m. to 3:15 p.m., Milan Community Center, Milan.

Illinois Milk Producers Association educational program, 9:30 a.m. to 3 p.m., Highland Community College, Freeport.

Jan. 28 Tillage seminar, 8:30 a.m. to 3:15 p.m., Joliet Junior College, Joliet.

Feb. 2-3 Illinois Crop Management conference, Northfield Inn & Conference Center, Springfield. 618-692-9434, ext. 13 Feb. 9-10 Illinois Crop Management conference, I-Hotel and Conference Center, Champaign. 217-333-4901.

Feb. 9 Wind farm siting, zoning, taxing conference, 7:30 a.m. to 4:30 p.m. Marriott Hotel & Conference Center, Normal.

Registration deadline Feb. 1. Register online at {www.RenewableEnergy.ilstu.edu}.

Livestock manager certification workshop, 9:30 a.m., Stephenson County Farm Bureau building, Freeport.

Dairy-beef emphasis.

Feb. 12 Alternative uses for small acreage workshop, 8:30 a.m. to 1 p.m. John Wood Community College, Quincy. Registration deadline Feb. 10. Register online at {www.extension.uiuc.edu/adams} or call 217-223-8380.

Feb. 16-17 Illinois Crop Management conference, Kishwaukee College Convention Center, Malta. 815-978-2844.

Feb. 23-24 Illinois Farm Bureau governmental affairs leadership conference, Crowne Plaza, Springfield.

March 9 Illinois Agricultural Legislative Day, Springfield.

March 10 Livestock manager certification workshop, 8:15 a.m., Sangamon-Menard Extension office, Illinois State Fairgrounds.

budget request that would restore education funding and provide a $261-million, or 3.5 percent, increase over fiscal year 2009 levels.

In its budget proposal sent to the General Assembly and Gov. Pat Quinn, ISBE is seeking per-pupil funding of $6,416, up from the current level of $6,119 per student. ISBE’s budget recommendation will be considered as part of the overall state budget.

State funding for education was reduced in FY 2010 and FY 2011 by nearly $450 million.

including the restoration of transportation funding that was cut in the current budget.

In both of the last two budgets, the General Assembly provided ISBE with lump-sum appropriations that were less than the previous year’s.

Quinn restored some — but not all — of the cuts with discretionary funding.

Despite overall budget decreases, per-student funding levels remained constant over the past two years.

Taxes Continued from page 1 provisions to correct spending levels, including the holding of funds in reserve to correct spending levels before tax rates are reduced.

Lawmakers chose to leave the current 5 percent residential property tax credit on the state income tax vs. changing it to a flat $325 per residence proposal that they had considered.

The decoupling of the state estate tax from the federal estate tax essentially means the state will again implement provisions that were in place from

2001 to 2009.

The legislation resurrects a $2 million exemption with the same previous rates.

That is a major reversal from a little more than a year ago.

On Jan. 1, 2010, the state “death tax” was re-coupled automatically to the federal level because of a state law that took effect in 2003, said Kevin Semlow, Illinois Farm Bureau director of state legislation.

The estate tax on both the federal and state levels was 0 percent for 2010, Semlow added.

Lawmakers failed to autho-

rize the state to borrow $8.75 billion to pay overdue bills.

Supporters were unable to secure the 71 House votes needed for a super majority that is required for bond authorizations, Semlow said.

Correction Greg Hoke of Petersburg was identified incorrectly in last week’s issue of FarmWeek.

Greg and his brother, Steve, farm in Menard County and recently lost some outbuildings and had some machinery and implements damaged by a tornado on New Year’s Eve.

FarmWeek Page 6 Monday, January 17, 2011

PRODUCTION

Crop supply running on fumes; prices continue to rise

BY DANIEL GRANT FarmWeek

A tight crop supply situation got even tighter last week as USDA cut its final 2010 crop production estimates and slashed ending stocks.

USDA projected U.S. farmers last year harvested an average of 152.8 bushels per acre for corn (down 1 percent from the November estimate and 5 percent from 2009) and 43.5 bushels per acre for soybeans (down about a half-bushel from the November forecast and 2009).

Final yields in Illinois for 2010 were pegged at 157 bushels per acre for corn (down from 174 bushels in 2009) and a state record 51.5 bushels for soybeans (up from 46 bushels in 2009).

Overall, crop production in the U.S. was estimated at 12.4 billion bushels for corn (down 1 percent from the November estimate and 5 percent from the previous year). Soybean production, at 3.33 billion bushels, was down 1 percent compared to the November estimate and 2009.

Faced with the tighter supplies and strong demand, crop prices marched higher much of last week.

“I think this heightened the severity of the situation,” said Clayton Pope, senior risk manager for AgriVisor. “(Crop supplies) already were running on fumes.”

USDA last week lowered U.S. ending stocks to just 745 million bushels for corn, down 936 million bushels from a year ago, and 140 million bushels for soybeans, down 25 million bushels from last month. Ending stocks of wheat were reduced 40 million bushels.

The stocks-to-use ratio subsequently declined last week to a 15-year low for corn of 5.5 percent, despite the fact that the corn crop is the third largest on record. The ratio slipped to just 4.2 percent for soybeans, the lowest level since 1965-66, according to David Hightower of The Hightower Report.

“The amount of the commodity is not as important as the pace we’re moving through

it in this global economy,” Hightower said during a teleconference hosted by the CME Group.

Crop demand last week was projected to remain strong despite tighter supplies and higher prices. The estimate for wheat exports was raised 50 million bushels, corn used for ethanol was increased 100 mil-

lion bushels, and soybean exports were unchanged at a record-high 1.59 billion bushels.

“We’re still not seeing rationing,” said Dan Basse of the AgResource Co. Basse projected corn prices would have to rise has high as $7.20 per bushel to begin rationing in the ethanol indus-

try, based on $90-per-barrel crude oil, while soybean prices could go as high as $15 per bushel before rationing begins in earnest in that market.

The higher crop prices obviously will affect the bottom lines of livestock producers, but Hightower doesn’t foresee major liquidation of the cow or hog inventories any time soon.

Corn feed demand was reduced by just 100 million bushels and some of that could be offset by increased production of distillers grains.

“I think retail prices will be forced higher, and beef and pork prices will continue to rise sharply,” he said. “So I don’t think we’ll see much liquidation. If we do, it will exacerbate the problem.”

Spring fertilizer supply could be tight Farmers encouraged to meet with dealers Farmers in the near future should meet with fertilizer dealers to make sure there will be an adequate supply of

fertilizer to meet their spring needs, according to industry experts.

A lot of fertilizer was applied last fall in Illinois, which should ease congestion in the pipeline this spring. However, the recent run-up in fertilizer prices could make some retailers hesitant to build additional inventory, according to David Asbridge, president and senior economist at NPK Fertilizer Advisory Service.

The price of all fertilizers increased at the start of the year, based on the most recent Illinois Production Cost Report published by the Illinois Department of AgriculDavid Asbridge ture. Prices in the state a week ago averaged $778 per ton for anhydrous ammonia, $701 for monoammonium phosphate (MAP), $671 for diammonium phosphate (DAP), $565 for potash, and $490 for urea.

“A lot of fertilizer dealers a couple years ago bought fertilizer at $1,000 a ton and sold it for $600,” Asbridge said during the Farm Profitability 2011 workshop hosted by Soyatech in Champaign. “They learned a lesson. They’re not going to stock up and carry extra fertilizer like they used to.

“That’s why it’s important for farmers to send a signal now to retailers about demand,” he continued.

“The spring fertilizer supply could be limited, so don’t wait until the last minute and

expect to get all you need.”

Asbridge projected fertilizer prices will remain strong into the spring before possibly easing next summer and fall.

Jean Payne, president of the Illinois Fertilizer and Chemical Association (IFCA), said higher fertilizer prices in recent months have been fueled by increased demand, Jean Payne which is due in part to higher corn prices.

IFCA is hosting its annual convention to discuss such issues Tuesday through Thursday at the Peoria Civic Center.

“Fertilizer does track with corn,” Payne said. “When there is strong demand for corn, there is strong demand for fertilizer because you can’t get the grain without the fertilizer.”

And much of the demand for fertilizer, and fertilizer production, is taking place outside the U.S. The boost in world fertilizer demand in recent years is equivalent to adding another U.S. market, according to Payne.

“You’re not competing with the next farmer in the next county (for fertilizer),” she told farmers. “You’re competing against farmers in the rest of the world.”

In the past 15 years, 28 ammonia plants have curtailed production nationwide. The U.S as a result currently imports the bulk of its nitrogen fertilizer, Payne said. — Daniel Grant

Page 7 Monday, January 17, 2011 FarmWeek

PRODUCTION

First Soy Yield Challenge encouraging; ISA plans to expand program

BY DANIEL GRANT FarmWeek

It could take years of research to boost soybean output well above the so-called “yield plateau.”

But if results of the firstever Soybean Yield Challenge in Illinois are any indication, growers and researchers could be on their way to producing more beans per acre.

The inaugural event, sponsored by the Illinois Soybean Association (ISA), attracted 40

farmer and student teams from around the state.

And participants of the 2010 Yield Challenge increased their bean yields by an average of 5.2 percent statewide as acreage in the challenge averaged 69 bushels per acre compared to standard plots in the same fields that averaged 65.6 bushels per acre.

“For the most part, we had above-average yields but below-average stress (in 2010),” Jim Nelson, Yield Challenge coordinator with

ISA, said during a Farm Profitability meeting in Champaign co-sponsored by ISA and the Illinois Corn Growers Association. “We’re still looking to expand the program.”

The goal of the program is to increase yields each year by about 1.5 percent. Growers interested in joining the challenge may visit the website {www.ilsoy.org} or {www.soyyieldchallenge.com}.

Information about the program also will be presented at a

series of regional crop management conferences Jan. 26-27 at Rend Lake, Feb. 2-3 at Springfield, Feb. 9-10 in Champaign, and Feb. 16-17 in Malta. Information about those events is available at the website {http://bulletin.ipm.illinois.edu}.

Two additional presentations will be made Feb. 12 at the Western Illinois University Farm Expo in Macomb. Those meetings will be at 10 a.m. and 2 p.m. in the Hall of Fame room at Western Hall.

Illinois Dairy Summit to address rising feed cost concerns Dairy producers concerned about the rising cost of feed and its effect on their bottom lines can learn about strategies to manage the situation this month at the Illinois Dairy Summit.

The event will be held at three locations around the state: Jan. 25 at Kaskaskia College in Centralia; Jan. 26 at the Illinois Farm Bureau Building in Bloomington; and Jan. 27 at Highland Community College in Freeport.

Registration for all meetings will begin at 9:30 a.m. The meetings will run from 10 a.m. to 3 p.m The Dairy Summit replaces University of Illinois Dairy Days, which were discontinued this year due to the retirement of U of I dairy educators Dave Fischer and Mike Hutjens and the lack of replacement personnel to run the program (read more about that situation in a future issue of FarmWeek).

“Leaders of the Illinois Milk Producers Association (IMPA) made the comment that it’s still important to have dairy programming in Illinois, so they stepped up and decided to be the

Improved N management critical for farmers, environment The recent rise in the cost of fertilizer could give farmers more incentive to do a better job of nitrogen management on their farms.

But there are plenty of other reasons besides profitability, including environmental quality and the threat of increased regulations, for farmers to focus on improved N management, according to Fabian Fernandez, University of Illinois assistant professor of soil fertility.

“Nitrogen management really means risk management,” Fernandez said last week at the U of I Corn and Soybean Classic in Bloomington. “We need to improve management of nitrogen. It not only affects the return on investment, but there also is a lot of regulatory pressure.”

The three most widely used sources of N on Illinois farms are anhydrous ammonia, urea-ammonium nitrate (UAN), and urea.

There are nitrification inhibitors, urease inhibitors, and coatings that can be used to protect the N sources from loss or from becoming unavailable for crop uptake.

“The potential benefit to any technology or source of N (to minimize loss) has to do with the time of application, soil conditions, and the type of soil,” Fernandez said.

Proper N management also includes using the correct placement method for each N source.

Urea typically is protected better from loss by incorporating it into the soil by tillage or rain.

Meanwhile, anhydrous ammonia losses often occur soon after application when the application is not fully retained in the soil.

Shallow placement of anhydrous ammonia in the soil, therefore, can lead to greater losses, according to Fernandez.

He recommended injecting anhydrous ammonia at 6 to 8 inches for fine-textured soil and 8 to 10 inches in coarse-textured soils.

Finally, the timing of each application is critical to its effectiveness.

“The closer you apply N to when the crop needs it, the less likely N will be lost, especially in (wet) years like the last couple,” Fernandez said.

However, farmers who sidedress N during the growing season should make sure there is some N available to help the corn plants get started early in the season.

As for other soil fertility issues, Fernandez believes phosphorus levels generally are in good shape in fields across the state but potassium levels may need to be rebuilt in some fields.

Some farmers backed off secondary fertilizer applications in recent years due to high costs and challenging soil conditions caused by successive wet years. — Daniel Grant

sponsor” of the Dairy Summit, Fischer said.

Fischer at each meeting will discuss calf care and managing herds for the future, and Hutjens will discuss nutrition, feed costs, and profitability issues.

A feed industry representative at the event will help producers evaluate proper management of feeding systems, including total mixed ration systems.

“A dairy producer and nutritionist will be on a panel at each location to discuss making decisions for 2011,” Fischer said, “and how to handle increase feed costs because of higher corn and soybean costs, and still maximize milk production.”

The program also will include updates from, IMPA, the Midwest Dairy Association, and Nic Anderson, business developer for the Illinois Livestock Development Group.

Registration for each Dairy Summit is $12 per person in advance or $15 at the door. To register, contact Nicole at IMPA at 309-5573343 or visit the website {www.illinoismilk.org}. — Daniel Grant

“The idea is to do a lot of different research and find out about the soybean plant and how it responds to different things we do,” Nelson said. “The ultimate goal is to increase soy yields.”

Some of the keys to higher yields during the first year of the event, according to participants, included seed selection, early planting dates, use of fungicides, weed control throughout the season, and the use of technology/precision planting.

Recent research by the University of Illinois suggests farmers who overseed their soybean fields as “yield insurance” actually may not see a yield benefit and could hurt their bottom lines.

Soybean seed costs five times more than it did 15 years ago, according to Vince Davis, U of I Extension assistant professor of soybean production systems.

Participants of the inaugural challenge reported a seeding rate of 140,000 seeds per acre seemed to be the most economical.

FarmWeek Page 8 Monday, January 17, 2011

BIOMASS

Ontario farmers see value of biomass on-farm uses Province seeking non-coal energy

BY KAY SHIPMAN FarmWeek

Biomass crops figure prominently in Ontario’s energy plans as the Canadian province will stop burning coal by 2013 under government mandate. But Canadian

farmers are more confident in growing biomass crops as an on-farm energy source than they are in raising them for a commercial market, an Ontario crop professor and farmer told FarmWeek.

Bill Deen, a University of Guelph researcher who also farms, described Canadian research on biomass crops and collaborative biomass research with the University of Illinois.

Deen was one of several international speakers at the eighth

annual Bioenergy Feedstock Symposium at the University of Illinois last week.

Biomass crop research has heated up as Canadian utilities seek to replace coal with other energy sources.

One utility, Ontario Power, estimated it will need 2 million tons of biomass annually, Deen said, adding Ontario’s timber industry couldn’t supply that volume.

Researchers believe they have found two cold-tolerant varieties of miscanthus that survived a hard winter in 2009. They also are fairly confident miscanthus and native grasses will withstand the Canadian winters.

“The issue is cold-soil tolerance in the spring, because they (perennials) don’t emerge early enough to beat early (fall) frosts, especially in northern Ontario,” Deen explained.

Researchers are focusing on biomass crops, not crop residue.

“Based on our research, we don’t think ag residues will

play a big role in biomass (fuel) for combustion systems,” Deen said.

If utilities are planning on farm-grown biomass, they’ll need to convince farmers who are skeptical about market opportunities, especially because current

natural gas prices aren’t high, according to Deen.

“Farmers recognize biomass on-farm opportunities (as replacement energy). I recognize the potential, but it’s got to be economical,” Deen said.

“As a farmer, let’s say I

have 100 acres of miscanthus. I’ve got to go to a banker and say, ‘Give me $100,000, and I won’t have a product until the spring of year three,” or a crop to sell until that same fall, Deen said. “There’s got to be some system for financing it.”

Biomass research shows promise, raises questions Scientists across the U.S. and Japan reported research advances in biomass crop production and uses at the eighth annual Bioenergy Feedstocks Symposium at the University of Illinois last week.

In the second year of a multi-state research project, U of I researchers and colleagues in three states dealt with optimum and disastrous growing conditions in the last year.

In Lexington, Ky., miscanthus in plots emerged and then was damaged by a late frost, reported Matt Maughan, a U of I doctorate student.

In May, the Kentucky plots received 7.84 inches of rain

and later baked in temperatures above 90 degrees over 44 days.

That miscanthus never flowered, Maughan noted.

Meanwhile, miscanthus plots in Mead, Neb., had ideal growing conditions with 32 inches of rain — 10 inches more than average — and produced the highest yields. The other plots are located in Urbana and in Adelphia, N.J. Maughan noted researchers for a second year did not record a significant plant response to nitrogen fertilizer on any of the states’ miscanthus plots.

Researchers will continue assessing biomass feedstock for suitability, Maughan said.

“We would like to begin developing an optimal region for growing miscanthus,” he concluded.

Toshihiko Yamada, a professor at Hokkaido University in Japan, reported new hybrid miscanthus plants were found growing wild in Japan.

U of I researchers who joined Yamada and other Japanese scientists to search for new hybrids found the new triploid plants growing near two adjacent populations of diploid and tetrapliod miscanthus. Japan has several wellknown miscanthus grasslands around the country.

U of I biomass research pri-

marily uses miscanthus giganteus, which is a sterile triploid.

The newly found hybrid may supply genetic variation that may be resistant to recently identified diseases and pests in miscanthus giganteus.

Work to develop a biomass crop system from field to market is continuing on the U of I’s Dudley Smith Farm near Pana in Christian County. Gary Letterly, Extension natural resource educator, described efforts in 2010 to re-establish miscanthus plots that were lost in 2008.

Harvest timing has become an important factor, especially because the miscanthus is processed into pellets and burned as fuel to heat the Christian County Extension office.

Letterly noted the fields are harvested as late as possible to reduce the amount of leaves harvested, which reduces the fuel’s ash content.

Letterly described several challenges he has encountered working with mowers and other farm equipment, developing handling, transportation, and storage methods, and locating nearby processors.

“We’ve got to do more research,” Letterly challenged the scientists. “All the answers aren’t here yet.” — Kay Shipman

Biomass crop webinar Thursday The Illinois Biomass Working Group (IBWG) will host a free webinar Thursday about the USDA Biomass Crop Assistance Program (BCAP), an incentive program for biomass feedstock production. The webinar is scheduled for multiple sites throughout the state from 1:30 to 3:30 p.m.

The webinar, organized by IBWG, the Illinois Institute for Rural Affairs at Western Illinois University, and University of Illinois Extension, will feature Don King, Farm Service Agency chief program specialist in Illinois, and Tim Slating from the U of I’s Energy Biosciences Institute.

Following the webinar, those interested in a BCAP project area application will be invited to follow-up meetings. Those meetings will begin in early February. Details will be announced.

Webinars will be hosted at the following locations: U of I Extension office, Quincy; U of I Extension office, Decatur; JoCarroll Energy, Elizabeth; Eastern Illinois University, Martin Luther King Jr. University Union, Charleston; U of I Extension office, Jacksonville; Southern Illinois University, Dunn-Richmond Economic Development Center, Carbondale; and Livingston County Farm Bureau, Pontiac.

Register online at {http:// go.illinois.edu/biomass}.

For more information, contact Fred Iutzi (f-iutzi@wiu. edu) or Erin Orwig (erorwig@wiu.edu) at the Illinois Institute for Rural Affairs at 800-526-9943 or Natalie Bosecker (natalieb@illinois. edu), Center for Advanced BioEnergy Research, at the U of I, at 217-244-9273.

Page 9 Monday, January 17, 2011 FarmWeek

FROM THE COUNTIES

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UREAU — The annual meeting will be at 6 p.m. Thursday at the Bureau County Metro Center in Princeton. Tickets are $5 and includes dinner.

• Bureau and Lee County Farm Bureaus will sponsor a bus trip to Chicago Thursday, Jan. 27. The cost is $55 per person for Farm Bureau members and $60 for nonmembers. You must be 18 years old or older to attend.

Contact the Farm Bureau office to register.

• The Young Leader Committee will take part in the annual District 4 Young Leader curling outing from 6-9 p.m. Friday at the Waltham Curling Club in Triumph. Cost is $10 per person to curl. Call the Farm Bureau office at 815-8756468 to register.

HAMPAIGN — The winter meeting series continues at 7 p.m.

Thursday, Jan. 27, in the Farm Bureau auditorium.

Mike Doherty, IFB senior economist and policy analyst, will discuss tax credit extension and its affect on the future of ethanol and biodiesel and what the high price of corn will do to margins. For more information, contact the Farm Bureau office at 352-2535.

OLES — Family bowling will be held Saturday at the Charleston Lanes, 1310 E Street, Charleston. Registration will begin at 3 p.m. with bowling to follow. The cost is $2.50 per game, and shoe rental is $2 a pair. Contact the office at 345-3276 by Thursday.

UMBERLAND — The annual meeting will be held at 6:30 p.m.

Tuesday, Jan. 25, at the Greenup Municipal Building.

Meal will be catered by Saathoff ’s, and Wes Wheeler will provide the entertainment. Contact the Farm Bureau at 849-3031 for reservations.

EWITT — Prime Timers will sponsor a trip to Par-A-Dice Casino in East Peoria Wednesday, Jan. 26. A carpool will leave from the Farm Bureau office at 10 a.m. Contact the Farm Bureau office at 217-9352126 for reservations by Monday, Jan. 24.

DGAR — Farm Bureau will host a stroke detection clinic from 9 a.m. to 4:30 p.m. Monday, Jan. 24, at the Farm Bureau building.

• Larry Acker of 3-F Forecasts will give his annual weather forecast and market predictions at 10 a.m. Thursday, Jan. 27. Call 217-4658511 for reservations.

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• A breakfast Market Outlook Seminar will be held at 7 a.m. Thursday, Feb. 3, at the Farm Bureau office. Dan Zwicker of ADM will be the guest speaker. Reservations should be made by Monday, Jan. 27, by calling 217-4658511.

• The annual meeting will be held Saturday, Feb. 5. A catered meal will be held at noon followed by a business meeting and entertainment by the Coon Holler Kids.

Reservations must be made

by Jan. 28 by calling 217-4658511.

ANCOCK — The Hancock County Soil and Water Conservation District will hold an open house at its office in Carthage from 7 a.m. to 5:30 p.m. Thursday.

ACKSON — An On the Road seminar will be held at 6 p.m. Tuesday, Feb.1, at Southern FS, Marion.

Kevin Rund, Illinois Farm Bureau senior director of local government, will be the guest speaker. RSVP to the Farm Bureau office at 6843129.

• The annual all-committee meeting will be held at 6 p.m.

Thursday, Feb. 3, at 17th St. Bar and Grill annex. All members serving on committees are invited. RSVP to the Farm Bureau office by Monday, Jan. 24.

ANKAKEE — The Kankakee County Farm Bureau Governmental Affairs and Marketing Committee will sponsor a WILL AM 580 Market Outlook panel discussion at 7 p.m.

Tuesday at the University of Illinois Extension office in Bourbonnais. Register by calling the Farm Bureau office at 815-932-7471.

ASALLE — The LaSalle County Farm Bureau Local Affairs Committee will sponsor an informational meeting about application of municipal sludge at 10 a.m. Tuesday at Pitstick’s Pavilion in Ottawa.

On the agenda are Jerry Hutton, Illinois Environmental Protection Agency; Gary McCandless, Illinois Emergency Management Agency, and Greg Firrantello, Stewart Spreading. For more information, contact the Farm Bureau office at 815-4330371.

EE — The application deadline for the Lee County Farm Bureau Foundation “Books by the Bushel” is Feb. 1. Applications are available at the Farm Bureau website {www.leecfb.org}. Contact the Farm Bureau office at 815-857-3531 or leecfb@comcast.net for information.

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• The application deadline for the Lee County Farm Bureau Foundation scholarships is Feb. 1. High school seniors and undergraduate students pursuing a degree in agriculture or an agriculturerelated field are eligible.

Applications are available on the Farm Bureau website {www.leecfb.org}.

• The Membership Committee is sponsoring a membership appreciation dinner at 6 p.m. Tuesday, Feb. 8, at the Amboy Community Building. A complimentary dinner will be served along with a presentation on the 2011 growing season. RSVP

by Monday, Jan. 24, to the Farm Bureau office at 8573531 or leecfb@comcast.net.

ERCER — The annual meeting will be at 5:30 p.m. Thursday, Jan. 27, at the VFW Hall, Aledo.

A pork chop dinner will be served. Cost is $3. Call the Farm Bureau office at 309582-5116 by Friday for reservations or more information.

• A variety of nuts and candy is available at the Farm Bureau office.

ONROE — Agriculture and rural issues will be the subject of an update program at 8:30 a.m. Friday at the annex.

Sheriff Dan Kelley and representatives of the conservation police, highway engineer, Natural Resources Conservation Service, Extension, and a grain merchandiser will speak. Breakfast will be served. RSVP to 939-6197

by Tuesday.

EORIA — A market and weather outlook will be presented at 8:30 a.m.

Thursday in the Farm Bureau auditorium. Mike McClellan will discuss weather for the

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2011 growing season. Call the Farm Bureau office for reservations at 686-7070.

• A crop insurance meeting is scheduled for 9 a.m.

Wednesday, Jan. 26, in the Farm Bureau auditorium.

Doug Yoder, Illinois Farm Bureau risk management specialist, will discuss 2011 crop insurance changes and options available to farmers.

Call the Farm Bureau office for reservations.

T. CLAIR — The Young Farmers will hold a blood drive from 3 to 7 p.m. Tuesday at the Farm Bureau building.

• The annual meeting will be Friday, Jan. 28, at Augustine’s in Belleville. Tickets are $10 per person and may be purchased in advance at the Farm Bureau office. The entertainment will be music

by Joe Powell. Reservation deadline is Friday. Call the office at 618-233-6800 for more information.

TARK — Members 55 and older may attend a meeting at 8:30 a.m. Friday to discuss trips and activities for 2011. Rolls, muffins, coffee, and juices will be served, and Bingo will follow.

NION — An On the Road seminar will be held at 6 p.m. Monday, Jan. 31, at Shawnee College.

Kevin Rund, Illinois Farm Bureau senior director of local government, will be the guest speaker. RSVP to the Farm Bureau office at 8332125.

ERMILION — The Marketing Committee is hosting an “International Grain Markets: Connecting Vermilion County to the World” program at 6:30 p.m.

Wednesday in the Farm Bureau auditorium. Burt

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Etchison, Stewart Grain in Bismarck, will discuss his company’s container loading operation and grain marketing opportunities. Joe Daughhetee and Phyllis Parks will talk about their recent trip to Brazil to learn more about our trading competitors.

AYNE — Farm Bureau is sponsoring an ag contracts seminar at 1 p.m. Tuesday, Jan. 25, at the Farm Bureau office. Laura Harmon, Illinois Farm Bureau senior counsel, will be the featured speaker. Preregistration is requested by calling 618-842-342. For more information, go to {www.waynecfb.com}.

INNEBAGO — Farm Bureau will sponsor a 14-day, 13-night trip July 25 through Aug. 7 to Alaska. Tours will include Denali, McKinley Explorer Rail Discovery Sternwheeler, and a glacier cruise. For more information, contact the Farm Bureau at 815-9620653.

OODFORD — A marketing meeting will be held at 9 a.m. Tuesday, Jan. 25, in the Farm Bureau auditorium. Kent Stutzman from Advance Trading will discuss available marketing tools. Terry Bline from Roanoke Farmers will offer local perspective, and Joe Kapraun with GROWMARK will discuss foreign markets and their importance to agriculture. Call 467-2347 for more information.

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

IAA Foundation receives $50,000 gift from the Monsanto Fund The IAA Foundation has received $50,000 from the Monsanto Fund, a private foundation and the philanthropic arm of Monsanto Co. This gift will match other funding and in-kind support to enhance biotechnology lessons for Illinois Agriculture in the Classroom (IAITC).

“Monsanto Fund has been a long-time supporter of IAITC,” said Susan Moore, IAA Foundation director. “We are most grateful for this gift, which will help train teachers and educate children about the science and biotechnology behind the production of food, fiber, and renewable fuel and also help them explore the number of careers available related to both science and agriculture.”

With dollars donated by the Monsanto Fund, IAITC will update biotechnology materials by developing a new fourth-gradelevel “Ag Mag,” and for the first time, produce a junior-high-level “Ag Mag” to help

reach even more teachers and students.

‘Ag Mags’ continue to be the cornerstone publications of the IAITC program and our most recognizable materials,” said Kevin Daugherty, education director for IAITC. “Now that we can also incorporate these lessons into smart board technology, it’s the perfect opportunity to broaden our scope to include junior high students.”

“We are excited that Monsanto Fund is supporting IAITC’s efforts to teach about the world of biotechnology,” said Mindy Whittle, Monsanto soybean industry affairs lead and member of the IAITC executive coalition.

“We believe it is critical for children to have access to agricultural educational resources so that they can understand the important links between agriculture and science. IAITC continues to be a leader in providing quality educational opportunities to Illinois youth,” Whittle said.

FarmWeek Page 10 Monday, January 17, 2011

PROFITABILITY

Agriculture technology guidance offered for 2011

BY SID PARKS

In this new year, many of you will be evaluating products or technology for your farming operations.

There will be numerous opportunities to attend grower meetings, trade shows, or have direct interaction Sid Parks with vendors, each of them holding the “promise” of improved efficiency, and bigger yields.

One topic I offer for your consideration: “Do you have the ability to keep track of where you are as you navigate your fields this spring?”

Certainly one of the top technologies of past few years for precision ag activities is RTK (Real Time Kinematic) GPS differential correction.

Adoption has been steady, but many producers still don’t take full advantage of this tool. Accuracy varies with product type and brand, but auto-steering and auto boom/clutch control on sprayers and planters all can benefit from RTK accuracy.

In the early days of RTK, most systems utilized a radio receiver to pick up a local transmission from a receiver mounted on a tripod or tower.

These FM systems are line-ofsight, meaning topography influences distance from the broadcast tower.

Elevation and frequency of repeating signals every few miles all contribute to accuracy and ease of operation.

Most tower systems weren’t networked together, allowing for path shift and signal degradation as distances increased.

More recent technologies offer advantages by utilizing a wireless modem in the roving vehicle rather than a radio to access differential correction.

The correction signal is transmitted via the Internet and broadcast via cell phone towers, meaning if you have cell phone service, you probably can use this superior system.

Additional advantages include the potential to transmit such files as recommendations or applications, because you can have two-way access to the Internet.

A relatively new service available to producers in Illinois is MyWay RTK. Most FS companies are authorized dealers of this service.

One big advantage of this system is the design allows compatibility with equipment that uses industry-standard, open architecture GPS protocols.

This is especially beneficial to producers using equipment from multiple manufacturers,

M A R K E T FA C T S Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $33.50-60.00 $49.02 $70.98-78.00 $75.99 n/a n/a This Week Last Week 32,118 30,959 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $71.68 $70.52 $50.48 $50.48

Carcass Live

Change 1.16 0.00

USDA five-state area slaughter cattle price This week $107.78 $107.87

Steers Heifers

(Thursday’s price) Prv. week Change $104.59 3.19 $105.00 2.87

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 123.38 1.96

This week 125.34

Lamb prices Slaughter Prices - NA

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 1-6-11 38.3 23.7 20.6 12-30-10 26.7 12.6 22.4 Last year 47.1 12.4 24.4 Season total 842.0 677.1 598.4 Previous season total 798.9 504.4 574.7 USDA projected total 1570 1300 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

or those who work with service providers with different brands of technology from their own.

There are four basics you will need to participate: 1 )An implement that is “RTK

ready” 2) A cellular modem 3) A data plan from your local cell phone service provider and 4)User credentials from MyWay RTK. Contact your local FS crop specialist or precision coordi-

nator for help with these or other production questions.

Sid Parks is GROWMARK’s manager of precision farming. His e-mail address is sparks@growmark.com.

U.S. farmers plant more wheat; acreage battle looms

BY DANIEL GRANT FarmWeek

How much impact is strong demand and tight supplies having on crop production needs for the coming year?

USDA last week projected winter wheat seedings are up 10 percent compared to a year ago, and 2010 corn production is the thirdlargest on record. Yet prices for both crops continued to escalate to historic highs.

“We need more acres and we need good weather,” said Dan Basse of AgResource Co. during a teleconference hosted by the CME Group.

USDA last week estimated winter wheat seedings totaled 41 million acres, up 10 percent from a year ago but 5 percent below 2009.

In Illinois, planted acres of soft red winter wheat last fall totaled 740,000, up 124 percent from the record-low 330,000 acres seeded in the fall of 2009.

The increase in wheat seedings likely will make it more difficult for farmers to plant more corn and soybean acres this spring. Basse estimated U.S. farmers need to increase spring plantings by about 5 million acres for corn and 2 million acres for beans compared to last year to meet demand.

U.S. farmers in 2010 harvested about 77 million acres of soybeans and 81 million corn acres.

“It’s going to be a demonstrative battle,” Basse said. The additional acres “will be hard to find.”

Gary Schnitkey, University of Illinois Extension farm management specialist, said current

crop prices favor more corn and soybean plantings over other crops.

In Illinois, Schnitkey said recent budget estimates favor corn over soybeans in 2011.

The corn-vs.-soybean return from 2000 to 2005 averaged $28 per acre more for corn statewide but from 2006 to 2010 increased to an average of $56 per acre. This year corn could generate as much as $90-plus an acre more than soybeans in the state.

“The move to more corn is likely (on some Illinois farms),” Schnitkey said last week at the U of I Corn and Soybean Classic in Bloomington.

“But if you’re going to move to more corn, you have to be concerned about controlling costs. Otherwise, you could see a lot of the advantage of moving to more corn eliminated.”

Overall, the need for more crop acres isn’t confined to the U.S., according to Basse. World crop production in recent months has been limited by drought in Russia and Argentina and flooding in Australia.

Concerns about lack of moisture in Argentina last week prompted USDA to cuts its Argentine soybean production estimate there by 1.5 million tons (55.5 million bushels).

“There is no shortage of market-influencing factors right now,” said Clayton Pope, senior risk manager for AgriVisor.

“Carryover is so tight there is greater emphasis on other world production scenarios. The market probably will follow Argentina with a microscope” the rest of the season, he said.

FarmWeek Page 11 Monday, January 17, 2011

PROFITABILITY Corn Strategy

C A S H S T R AT E G I S T Fundamental focus narrows The passing of the January USDA reports shifts the markets into a situation in which there’s a lull in significant fundamental changes, especially on the supply side.

From a market perspective, bull markets, especially “aging” bull markets, have a need for fresh fuel to keep an existing rally under way. And there is some reason to be concerned that demand news could turn a little more negative.

In addition, market bulls have been looking for a fresh influx of outside money to help carry prices higher. Early January economic and commodity reports have kept that money sidelined. And now there are a few hints that influx of money may not be as robust as once believed.

Fundamental features that impact demand for U.S. grains will dominate the focus over the next few weeks, at least until March when traders will start to focus on the prospective planting report coming on March 31.

South America and China likely will remain at the top of factors that could impact demand.

With Chinese President Hu Jintao due in Washington for meetings with President Obama this week, there’s hope that additional grain purchases will be made. If anything, soy-

Basis charts

beans are the most likely candidate for any grain business, and given short-term conditions in China, they are more likely to be new-crop purchases.

Chinese crush margins have fallen back near break-even.

Meal demand has been slow, but the cap on soybean oil prices has weakened them as well. Soybean port stocks remain heavy enough that some importers have requested a delay on shipments.

Corn purchases by China anytime soon have become a “pipe dream” as well. Nearly everyone now believes this year’s China crop was very close to the government projection of 172 million metric tons (mmt) (6.8 billion bushels).

That’s enough to meet demand and add 7 to 10 mmt to inventories. Government officials also are said to want to “kill” any prospect of importing corn for government inventories because of high prices.

South American weather will continue to remain on the radar.

It’s been especially troublesome in Argentina, in part because of the La Nina in the Pacific.

Conditions moderated somewhat at the end of December but returned to the warmer, drier pattern at the beginning of January. More general rains are slated to return this coming week, with temperatures dropping back to near normal.

If this turns into a lasting pattern, and there’s a chance it could, Argentine soybean output might be 45 mmt at worst and maybe even a little better.

At best, though, an improvement in weather would only stabilize the Argentine corn crop. Recent talk has centered around a 2021 mmt crop, enough to allow them to export 12-13 mmt.

In Brazil, other than dry pockets in the extreme southern part of the country, weather has been quite good this year. There’s increasing talk their soybean output could reach 71-72 mmt, a new record.

AgriVisor endorses crop insurance by

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

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

309-557-2274

Cents per bu.

2010 crop: When March futures penetrated the previous high, it opened the door for a test of $6.50-$6.60. However, if fresh news doesn’t continue to feed the bull, the market will become vulnerable to at least a correction. Price any bushels other than “gambling bushels” now. Hedge-to-arrive (HTA) contracts for winter/spring delivery still look like the best marketing tool, but check returns against storage costs.

2011 crop: There’s a possibility December futures could approach $6 before peaking, but the pattern suggests this contract may be close to completing a major move up.

Gross income per acre is too high not to have some corn priced. Get caught up now.

Fundamentals: With the January USDA crop report now behind us, the market will depend on demand features to sustain gains. And there are subtle signals that may not be as robust as some believe.

Investment money doesn’t seem to be as interested in buying commodities as thought just 2 to 3 weeks ago.

Soybean Strategy 2010 crop: The smaller soybean production estimate was the surprise in the USDA report.

Even with the friendliness of the numbers, the market will need help from demand parameters to sustain strength, and they’re looking a little negative.

We’d only keep “gambling” inventories at these prices.

2011 crop: The tighter old-crop structure put a little more pressure on the need for new-crop planting, which may carry prices slightly higher.

Still, it looks like the rally off the November low, and maybe the summer low, is near completion. We urge you to get caught up now.

Fundamentals: The passing of the USDA reports will turn the attention to Argentina and China. Argentine weather is expected to improve a little this week. And, there’s a chance conditions may not get as bad as a typical La Nina year because of warm ocean waters in the Atlantic. There are sub-

tle indications Chinese demand could slow markedly because of poor crush margins and big port stocks.

Wheat Strategy 2010 crop: Wheat prices have slipped below key supports, indicating the market could be slipping into a choppy sideways trend. A close below $7.42 on the Chicago March contract would suggest the trend might be turning lower. Complete sales if you still have inventory.

Because of the futures carry, HTA contracts for winter/spring delivery are still the most attractive marketing tool.

2011 crop: Use rallies above $8.30 on Chicago July 2011 futures to make catch-up sales.

We’ve even considered adding to them because of price, but don’t want to get too aggressive ahead of breaking dormancy. If basis is wide on cash contracts, use a HTA contract.

Fundamentals: The current USDA report indicated wheat supplies are adequate to meet demand with the slight increase in ending stocks to 178 million metric tons. Going forward, the trade will keep a close eye on winter conditions in the U.S. Great Plains, Russia, the Ukraine, and China.

FarmWeek Page 12 Monday, January 17, 2011

PERSPECTIVES University of Illinois student intern Katelyn Jones of Saybrook records data for her research project at The Maschhoffs, Carlyle. (Photo courtesy of The Maschhoffs)

work with innovative industry leaders. They also offered a glimpse into one of the largest family-owned pork farming networks in the United States.

Katelyn Jones of Saybrook and Amy Daniels of Belle Rive recently completed internships at The Maschhoffs in Carlyle.

The Maschhoffs offer seven to eight internships each summer.

“They are progressive industry leaders –focused on doing things right, being innovative, working with others, and being a good neighbor,” Jones said.

During her research and innovation internship, Daniels worked on three main projects, including an evaluation of facility use and floor space. She studied floor space and group size while working in confinement buildings and weighing pigs for research.

“It was interesting to see how floor space changes growth by looking at the statistics I found through my research,” Daniels said.

Her second project involved finding and designing ways to measure and review swine health. Much of her time was spent laying the groundwork for this project by editing work instructions and protocol for future use in health studies.

Daniels’ third project involved evaluating the accuracy of scales attached to feed bins. She collected data, ran reports, and created data tables to calculate the accuracy of feed measurements from the feed mill, truck, and bin scales.

“I really enjoyed this project because I was able to see the end result and developed statistics between feeding phases and other aspects that affected accuracy,” Daniels said.

A mentor was assigned to help Daniels with her projects. At the end of the summer, the interns pre-

LEARNING LIFE SKILLS Livestock internships show innovations and challenges Editor’s note: University of Illinois students in the College of Agricultural, Consumer, and Environmental Sciences embark ELLEN REEDER on internship experiences across the county, state, and guest columnist even the world. As future leaders of the agriculture and food industry, they have agreed to share some of their experiences with FarmWeek readers.

The livestock industry offers challenging careers.

Internships provided two seniors studying animal science at the University of Illinois the opportunity to

sented reports on their projects.

“From top to bottom, everyone works together and there is a feeling of family throughout the work environment,” Daniels said of her Maschhoff experience. “I enjoyed being involved in real-time decisions with the company as well.”

Jones also was a nutrition research intern for The Maschhoffs in 2009. Her project involved studying liquid starter diets in weanling pigs.

The goal was to try to help pigs make the transition from a straight liquid milk diet to an all-solid diet in the nursery phase.

Jones also assisted the other interns with their projects and worked with an umbilical hernia study, floor space study, and a sire-line trial.

Both Daniels and Jones plan to continue their educations after graduation. Daniels is considering either attending veterinary school or pursuing a master’s degree in swine management.

Jones will begin working on her master’s degree in meat science next August. She plans to pursue a career in the swine industry with pharmaceuticals or animal production and hopes one day to earn a doctorate and teach at a university.

While Jones’ internships involved working with animals, she said the people she met and the connections she made were some of her favorite internship experiences.

“Not only was I able to work with five of my peers who taught me a lot and are still good friends of mine, but I was also able to meet and work with some of the most influential people in the swine industry today,” Jones said.

“Each and every person at The Maschhoffs taught me valuable lessons about the swine industry, general research, work ethic, and life skills,” Jones concluded.

Ellen Reeder is a freshman from Little York studying agriculture communications at the University of Illinois College of Agricultural, Consumer, and Environmental Sciences.

LETTERS TO THE EDITOR Team) committee that drafted policy language calling for equines to be considered as livestock (instead of companion animals or pets).

That language Ken Kashian photo was approved by Equine census, premise the delegate body as were two ID separate issues other submittals, one seeking Editor: legislation to allow equine harI was disappointed that Mr. vesting in Illinois and the other (Chet) Peugh’s Jan. 3 letter supporting the development contained so many misconcepand implementation of an tions about the proposed equine census. equine census. He’s linking The reason for supporting premise identification with the an equine census has nothing census when they are separate to do with animal health issues, Issues. the lack of federally inspected Premise registration and slaughter facilities, or the ecoanimal identification are subnomic downturn that has creject to review by the memberated the overwhelming number ship each year, but Illinois of unwanted and abandoned Farm Bureau delegates voted to support voluntary participa- horses. These are serious stand-alone issues. tion in these programs under This proposed census seeks the most recent policy resoluto determine the actual numtions enacted last month.

I was a member of the 2010 ber of equine, as accurately as equine GRIT (GrassRoot Issue possible, so we can show legis-

lators, veterinary services, feed vendors, equipment dealers, and other commodity groups just how large the economic impact of equine ownership is in this state.

We need strength of numbers to help fight off attacks from the extremist anti-livestock groups.

We’re not asking for tax dollars, and equine owners indicate they would prefer third-party development of the census rather than some government agency. The survey must be limited to basic information so as not to be ignored and must reach those owners outside the database of USDA questionnaires.

Such a census won’t be created overnight, but the equine

GRIT committee intends to follow through on this project.

DAVE SADLER, Fithian

It’s wrong to call estate tax ‘death tax’ Editor: There is no federal death tax, in quotes or otherwise. There is an estate tax. A person’s death is not taxed — his or her remaining assets (estate) are taxed.

To state otherwise in your paper is inaccurate.

A person can die and leave assets valued at $20 million or more and not pay one cent of estate tax, if the assets are left to a surviving spouse. The same applies for assets left to a charity.

And now, as of 2011, only estates in excess of $5 million are taxed, so assets up to $5 million may be left to children or friends and not one cent of tax will be assessed.

If one consults an attorney or a financial adviser, there are ways to legally shelter even more assets from the estate tax.

To use the term “death tax” shows a bias on the part of your newspaper. It is the same bias that uses the term “Obama care” instead of health care reform.

Does FarmWeek wish to be accurate or a forum for the conservative agenda?

JOAN E. WIFF, Prophetstown

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