TWO MAJOR BILLS — concealed car r y and a proposal to force consolidation of local units of government — are voted down in the state legislature. .................3
THIS ISSUE MARKS the end of the reports from Brazil for the 2010-11 season. Harvest there is wrapping up as many farmers here hope to get started planting. ..........7
A WHEAT TOUR is scheduled later this month in Southern Illinois. Concerns about wheat scab are surfacing because of all the wet weather. ..............................9
Monday, May 9, 2011
Two sections Volume 39, No. 19
Planting creeps along; cold temps slow development BY DANIEL GRANT FarmWeek
Planters finally started to roll in some areas of the state last week, but planting progress still is well behind the average pace. Illinois farmers planted just 10 percent of the corn crop in April, compared to the five-year average of 46 percent. Last year, 85 percent of the state’s corn crop was in the ground as of May 1. “Saturated fields and flooding have been a problem at some locations, especially along the Illinois, Mississippi, (and Ohio) Rivers,” the National Agricultural Statistics Service (NASS) Illinois field office reported. In Cairo, the Ohio River last Monday (May 2) crested at a record 61.72 feet. The town as of Friday still was being protected by levees and, after the U.S. Army Corps of Engineers blasted a levee on the Missouri side, the river at Cairo was pro-
jected to drop below 59.5 feet over the weekend. The controversial decision to blast the Birds Point levee flooded about 200 square miles of Missouri farmland. The Missouri Farm Bureau estimated damage from the flood may exceed $100 million. Rainfall in Illinois for the month of April averaged a recordhigh 7.45 inches while the temperature averaged a halfdegree below normal at 52.6 degrees, according to the Illinois State Water Survey. Topsoil moisture the first of last week was rated 68 percent surplus and 32 percent adequate. Darrel Good, University of Illinois Extension economist, believes there still is time for farmers to plant corn despite the late start. USDA in March projected Illinois farmers will plant 12.8 million acres of corn, up 2 percent from a year ago.
“Most of the intended corn frost to some portions of the growing vigorously, so that will crop likely will get planted,” state. help protect them (from freezing Good said. “So, the most “It did some damage,” Emer- temperatures),” Nafziger said. important factor will become son Nafziger, University of IlliCorn that was planted before summer weather.” nois Extension crop systems April 15 that has not emerged Planting progress in the state specialist, said of temperatures by this week, though, could be actually was further behind in that dipped into the high-20s. lost. 2009 when just 5 percent of “Corn on the edges of some “Some reports say corn corn was in the ground as of fields browned up.” seedlings are showing the twistMay 1. But the corn yield in However, Nafziger noted very ed growth and root proliferation 2009 still averaged 174 bushels little of the corn crop (3 percent) that we associate with chilling per acre in the state compared was emerged as of last week so injury,” Nafziger noted. “Such to just 157 bushels last year frost damage should be minimal. seedlings often fail to emerge when much of the corn was “Corn plants haven’t been and may require replanting.” planted by May 1. “In 2009, extremely favorable summer weather extended the growing season and more than compensated for planting delays,” said Good, who noted the uniformly favorable conditions of the summer of 2009 are rare. The latest setback to Brian Schaumburg, Chenoa, standing on planter, and his cousin, Steve McWhorter, Colfax, planting and crop develop- last week were filling Schaumburg’s planter with corn. Schaumburg was planting a 160ment last week acre field south of Weston in McLean County. He resumed planting last week after getting was a front that just 60 acres of corn planted a few weeks ago. Schaumburg, a FarmWeek Cropwatcher, brought more said he likes to be done planting corn by April 25 and soybeans by May 5. During this very wet year, he obviously did not achieve either goal. (Photo by Ken Kashian) showers and
Senate battle over ethanol credit intensifies Periodicals: Time Valued
D.C. scrutinizing oil subsidies BY MARTIN ROSS FarmWeek
With pump prices topping $4 nationwide and petroleum profits continuing to ride high, the White House and key congressional leaders are taking aim at oil subsidies. It remained questionable, however, whether a shift in focus toward soaring oil company profits would offer policymakers and biofuels interests a respite from what advocacy group Growth Energy CEO Tom Buis termed efforts by “senators from the Oil Patch”
to target ethanol incentives. In his April 30 weekly address, President Obama called on Congress to “stop subsidizing the oil and gas industries.” “Instead of subsidizing yesterday’s energy, we should invest in tomorrow’s,” he said. Senate Finance Committee Chairman Tom Baucus (DMont.) seeks to halt billions in tax breaks for multinational oil companies and invest more in domestic energy. Exxon and Shell posted major gains in first-quarter 2011 profits, and Buis believes the Baucus plan “would begin to level the playing field and allow renewable, affordable ethanol to
FarmWeek on the web: FarmWeekNow.com
compete in the open market.” However, Sen. Tom Coburn (R-Okla.) merely intensified his push to repeal the 45-cent-pergallon federal ethanol tax credit last week, joined by Sen. Dianne Feinstein (D-Calif.). Feinstein called ethanol incentives “fiscally irresponsible (and) environmentally unwise” (see page 5). Sen. Chuck Grassley (RIowa) responded with a proposal to trim the credit to 20 cents in 2012 and 15 cents in 2013. Under a new “variable rate” plan, the credit could rise to 30 cents for 2014-2016 if oil prices dropped below $50 a barrel, but would fall to 6 cents with $80 oil and disappear at $90.
The variable rate subsidy, which kicks in when refiners are less economically motivated to blend biofuels, would end after 2016. Buis argued “oil tax credits and coal tax credits and nuclear tax credits should be on the table as well.” “Our industry has stepped up: We will support a dramatic reform of our tax incentive program,” Renewable Fuels Association President Bob Dinneen told FarmWeek last week. “We recognize that this is not the ethanol industry of 20 years ago. A re-evaluation of the tax policies that have See Ethanol, page 5
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, May 9, 2011
GOVERNMENT
Quick Takes PRICE OF OIL PLUNGES — The price of crude oil last week dropped 8.6 percent on Thursday, the steepest price decline in more than two years, and briefly traded below $100 at $99.80 a barrel. U.S. crude oil prices had gushed last month to a 2.5-year high of $113 per barrel. The price of U.S. crude on Friday settled at $101. The dip in oil prices reportedly was triggered in part by a liquidation of hedge funds that also sparked a selloff in stocks. The Dow Jones Industrial Average last week fell 139.41 points, or 1.1 percent, which was its biggest drop in two months. Fuel prices as of late last week had not responded to the selloff. The AAA Fuel Gauge Report Friday showed nationwide average prices of $3.98 per gallon for regular gasoline (up 7 cents from the previous week and $1.05 higher than a year ago) and $4.17 per gallon for diesel fuel (up 2 cents from the previous week and $1.02 higher than last year). STATE OFFERS DISASTER LOANS — Farmers, residents, and businesses in disaster areas may qualify for loans under a link-deposit disaster program in the state treasurer’s office. The treasurer provides reduced-interest loans through participating lenders to storm victims with weather-damaged property. Money is available to qualified applicants who are waiting for insurance settlements or other aid programs to take effect. Farmers, residents, and business owners who don’t have adequate insurance also may apply. An applicant must first obtain a loan for damage repairs and expenses from a participating lender. Those with insurance have up to a year to repay the loan, while those without insurance may repay it over five years. For more information, call the disaster program hotline at 866-523-0641 or go online to {www.treasurer.il.gov}. REGISTRATION SYSTEM ‘BROKEN’ — American Farm Bureau Federation (AFBF) Vice President Barry Bushue last week warned the process for crop protection registration is “hopelessly broken.” Bushue, who testified before a joint public hearing of the House Committee on Agriculture and the House Committee on Natural Resources, cited the need for reconciliation between two federal agencies that both perform crop protection risk assessments. Because both the Federal Insecticide, Fungicide, and Rodenticide Act and the Endangered Species Act specifically require the U.S. Environmental Protection Agency (EPA) and the National Marine Fisheries Services, respectively, to perform risk assessment procedures, AFBF says legislation is needed to mesh two risk assessment requirements into one. “The duplication of the risk assessment requirements for crop protection registration by EPA and for consultation by the Services is a prime example of the duplication and waste that exists in our federal agencies,” Bushue said. “The current process is not effective for anyone, including growers, regulators, and endangered species.”
(ISSN0197-6680) Vol. 39 No. 19
May 9, 2011
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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BCAP challenges source of grower frustration BY MARTIN ROSS FarmWeek
USDA may narrowly target the type of projects selected, Illinois Institute for Rural Affairs (IIRA) ag/energy program manager Fred Iutzi said. The May deadline and a complex application process make it tough for growers and processors
To Eric Rund, frustration over obstacles to a biomass startup program is a “Don’t get me started” proposition. The Pesotum producer has courted University of Illinois scientists and toured Europe in an effort to gauge Midwest potential for ‘If we’re hustling around right now to try to get miscanthus production. project areas together for the fiscal ’11 deadRund now is exploring the line, that will put us much more on track for possibility of federal Biomass fiscal ’12 or 2012 farm bill opportunities.’ Crop Assistance Program (BCAP) support for a miscant— Fred Iutzi hus “project area.” Illinois Institute for Rural Affairs BCAP was created in the 2008 farm bill, but guidelines were tightened recently by USDA. Then Conto qualify this year, Iutzi said. gress last month cropped $134 million from fisOnly last week, USDA announced approval cal 2011 BCAP funding, and USDA set a tight of its first BCAP project area: a 39-county, May 27 deadline for project area applications. 20,000-acre project proposed by the Missouri“We have a nation and administration that are based and farmer-owned co-op Show Me Energung ho on biomass energy as a major part of the gy. State Farm Service Agency offices must solution to our energy problem,” Rund told complete review of fiscal 2011 applications by FarmWeek. June 10, and June 24 is deadline for national“And yet Congress once again cut what little level review of state-submitted applications. there was, and now we’re down to a little over $112 Iutzi sees two to three prospective Illinois million for the whole nation in the BCAP proapplicants for fiscal 2011, potentially bringing gram. That’s going to do little or nothing except to crop residues, woody biomass, and dedicated discourage everyone.” energy crops to the table. Whether producers Rund warns biomass fuels can’t be developed can secure near-term funding may depend on without new crops, but growers won’t plant them partners being “comfortable” signing letters of without some assurance of an end market. BCAP intent under deadline pressure, he said. would supply the “seed money” growers need to “The silver lining may be that if we’re hustling address early production risks and secure financaround right now to try to get project areas togething, he said. er for the fiscal ’11 deadline, that will put us much The funding cut likely means “a lot fewer more on track for fiscal ’12 or 2012 farm bill projects” will be supported nationwide, and opportunities,” Iutzi told FarmWeek.
Page 3 Monday, May 9, 2011 FarmWeek
GOVERNMENT
Report: Education should prepare students for careers BY KAY SHIPMAN FarmWeek
Many Americans send their children to college, but that doesn’t necessarily prepare those young adults for careers, the head of a Harvard University education project recently told Illinois educators, business executives, and government officials. “We have to take a broader view of the jobs available ... not everybody is going to be a lawyer or a doctor,” said William Symonds of the Harvard Graduate School of Education. Symonds is project director and primary author of a “Pathways to Prosperity” report. The Pathways to Prosperity project started in 2008 to inves-
‘Vocational education is the best way for kids to learn.’ — William Symonds Ed reform project director
tigate solutions to help prepare young people for fulfilling careers. In Illinois, Symonds has been working with the Illinois Business Roundtable and state education and government leaders on high-quality career and technical education. While schools have focused on students’ academic needs to earn bachelor’s degrees, the job market outlook shows two out of three jobs in the coming decade will require only some post-high school education, according to Symonds. He cited another study that projected only a third of future jobs will require a bachelor’s degree or more advanced education.
“The reality is for many young people a community college makes more sense and is more affordable,” Symonds said. Symonds recommended students, even those in elementary grades, be given information about potential careers to tap their interests and help prepare them for fulfilling careers. Many students enter — and even graduate from — college only to discover they don’t enjoy working in the field for which they’ve studied, he noted. Symonds urged businesses to become involved by offering students work experience and even work-based learning that integrates school class work with job experience. Industry involvement would provide effective vocational education with real-world application of academic principles, he noted. “Vocational education is the best way for kids to learn ... because it’s real world,” Symonds said. His wish list included a dramatic expansion of career counseling that would start with young students and continue through their college years. Industry needs to be a partner in his vision of career counseling, because businessmen have accurate views of the job market, Symonds said. “Illinois employers can play a role by talking to kids about jobs,” he said. “In Illinois, we have to get over thinking the only way to success is (attending) a fouryear college ... and get over the stigma of vocational and technical education,” he urged. Symonds challenged the state to have a goal for every student to obtain post-high school education or training and earn the credentials for a successful career.
Pike County Farm Bureau President David Gay, right, testifies about the process to draw a new legislative district map at the Senate Redistricting Committee’s hearing in Macomb. Looking on left to right are Giovanni Randazzo, Senate Democrat staff member; and Sens. John Sullivan (D-Rushville) and David Koehler (D-Peoria). Another Farm Bureau leader, Samuel Serven, chairman of the Knox County Farm Bureau government and policy task force, also testified. The Senate committee concluded its hearings last week; the House Redistricting Committee wrapped up its hearings April 25. (Photo by Blake Roderick, Pike County Farm Bureau manager)
State agriculture funding unveiled as lawmakers vote on major bills The Illinois Senate and House unveiled part of their respective state budget plans last week amid votes on major legislative bills. One of those bills, authorization to carry concealed firearms, was defeated on a 6552 vote in the House. A twothirds supermajority (71 votes) was required for passage. Illinois Farm Bureau supported the measure, HB 148, sponsored by Rep. Brandon Phelps (D-Harrisburg). The bill would have allowed a county sheriff to issue a conceal-carry permit to individuals ages 21 or older who completed required training and passed background screening. The Senate defeated SB 173, which proposed to force consolidation or elimination of units of local government. IFB opposed SB 173 because it wouldn’t have allowed local residents to vote on government consolidation.
On the budget, the veil was lifted on parts of both chambers’ plans. The Senate Appropriations Committees introduced a large portion of their proposed state budget in 26 separate bills, said Kevin Semlow, IFB director of state legislation. Meanwhile, the House took testimony on its proposed budget and moved parts of that plan to the floor, Semlow noted. SB 335 contains a proposal to suspend general revenue funding (GRF) next fiscal year for several agricultural-related funds, including those that finance fairs and fair premiums and support horse racing, Semlow said. SB 2408 proposes to reduce some parts of the Illinois Department of Agriculture (IDOA) budget 5 percent and other parts by 7 percent. It proposes to cut funding for Soil and Water Conservation Districts by 10 percent and
would eliminate several programs, including the state funding match of county-generated revenue for University of Illinois Extension. By Friday, the Senate had not voted on the majority of its budget bills. However, three of five House appropriations committees voted on combined spending bills, including IDOA’s budget, Semlow said. Overall, the House proposal would cut IDOA’s budget by 5 percent. However, unlike the Senate’s proposal, the House plan does not eliminate whole programs, he explained. With the conclusion of redistricting public hearings, the next step will be the release of new legislative district maps. There have been indications lawmakers may hold a couple more public hearings to take public comments after the legislative maps are released, according to Semlow. — Kay Shipman
Illinois may develop career education initiative for ag Illinois education reformers are working on a career education initiative, known as learning exchanges, that fits with the existing structure of and industry support for agriculture education. Jason Tyszko, deputy chief of staff with the Illinois Department of Commerce and Economic Opportunity, said learning exchanges would connect education with public and private sectors. Initially, the focus will be on nine priority industry sectors, including an agriculture, food, and natural resource sector. In his “Pathway to Prosperity” report, William Symonds of the Harvard Graduate School
of Education defined learning exchanges as high-quality programs of study in major career sectors. Symonds reported Illinois is proposing to create of learning exchanges in several industry sectors, including agriculture, manufacturing, and health sciences. “One of the key functions of the learning exchange would be to promote and facilitate opportunities for work-based learning,” Symonds wrote. In Illinois, ag education on the high school and college levels already appears to provide students with many of the components of a learning exchange.
A learning exchange integrates classroom study with career- and work-based information. Each learning exchange is to include a student organization that will offer members conferences, internships, and professional networking experience and help them build their leadership and communication skills. That would fit with the integrated nature of FFA and ag education and student opportunities as FFA members. Learning exchanges also are to provide students with workbased learning opportunities with adult mentors and to give students in grades kindergarten through 12 career development
resources to make them aware of related classes and careers. In Illinois, those components are provided through ag education, FFA, and ag literacy work done by the Illinois Agriculture in the Classroom and Facilitating Coordination in Agricultural Education. The learning exchanges “allow industry to be a partner with education ... and to determine how it wants to invest (in education),” Tyszko said. The Illinois Business Roundtable, which helped sponsor a recent education reform meeting, may focus on two to four of the nine identified priority career areas, said
Jeff Mays, Roundtable president. The Roundtable is interested in learning exchanges for the manufacturing, finance, information technology, and health science sectors, Mays said. Recently the Illinois State Board of Education surveyed all district superintendents to gauge interest in career-related programs. The superintendents were asked to rank the career areas in which they were most interested. The respondents were most interested in the information technology sector, followed by health science and agriculture, respectively. — Kay Shipman
FarmWeek Page 4 Monday, May 9, 2011
MARKETS
WTO ag policy direction outside WTO ‘box’? BY MARTIN ROSS FarmWeek
Reducing direct payments to farmers likely would hurt any U.S. position in World Trade Organization (WTO) negotiations, economist Robert Thompson suggests. Last week, the American
Farm Bureau Federation joined the U.S. Chamber of Commerce, the National Association of Manufacturers, and others in a statement lamenting the current WTO Doha Round’s lack of progress toward its intended goal of promoting world economic growth via expanded trade.
The group sought continued efforts toward a WTO outcome “that would open markets around the world, produce new trade flows, grow our economies, and sustain and create jobs.” However, they stated a WTO agreement will not be possible “unless all major economies
Economist: FTA delays ‘scandalous’ A trio of international free trade agreements (FTA) would slash or eliminate import duties on corn, beans, meat, and other key Illinois products, as well as promote an equally crucial U.S. commodity: credibility. That’s according to Robert Thompson, former University of Illinois Gardner Chair for Ag Policy and USDA/World Bank analyst. Thompson urges congressional approval of bilateral trade agreements with South Korea, Colombia, and Panama not only for the sake of expanded market access in Asia and Latin America but also for the sake of future export growth. The White House last week was in technical discussions with Congress — a potential lead-up to the president’s submission of the three FTAs for a vote. Thompson urged President Obama to step up the process. “It’s scandalous we haven’t approved those,” he told FarmWeek. “With the failure of the (World Trade Organization) Doha Round (see accompanying story), everyone else in the world is negotiating bilaterals or small regional agreements. “The U.S. isn’t in the game. No country’s negotiators are going to take anything the U.S. negotiators say as credible because of the failure of Congress to ratify the three agreements that have been negotiated.” All three pending agreements effectively
were reopened recently to address U.S. concerns about Korean automobile trade, Colombian labor rights, and perceived Panamanian non-tariff ag trade barriers. The Obama administration indicated last week it would ask to consult with South Korea on greater U.S. beef access once the South Korea FTA takes effect. Thompson sees renewal of trade promotion authority (TPA), also known as presidential “fast track” authority, as a crucial move to maintain credibility in future bilateral or regional talks, “and probably also to finish up the Doha Round.” TPA authorizes the administration to negotiate agreements that are then subject to a straight up or down vote by Congress, thus helping assure lawmakers won’t tinker with provisions agreed upon by foreign negotiators. However, TPA expired in 2007, and President Obama has not sought renewal. The U.S. enacted the North American Free Trade Agreement, the Dominican Republic-Central American Free Trade Agreement, the previous WTO Uruguay Round, and FTAs with Singapore, Chile, and Australia under TPA. As ag groups continued to push FTA approvals, the European Union (EU) stepped up efforts toward new global trade pacts with Malaysia, Indonesia, and other Pacific Rim nations. Korea’s National Assembly ratified an EU FTA last week. — Martin Ross
make meaningful contributions.” In a recent FarmWeek-RFD Radio interview, Truth About Trade and Technology Chairman Dean Kleckner stressed the need for “a broad trade agreement worldwide” through Doha. Kleckner nonetheless fears “the Doha Round is dead,” despite WTO Director Pascal Lamy’s late April call for members to find a way of achieving a breakthrough. According to Thompson, the best hope for rebooting Doha talks is “a U.S. unemployment rate below 5 percent.” “The U.S. is not going to agree to anything that liberalizes trade with an 8 percent or higher unemployment rate,” especially with a Democrat White House and Senate “beholden” to union interests, the former World Bank economist said. U.S. budget debate is “going to make our relationship with the WTO even worse,” he warned. U.S. House Budget Chairman Paul Ryan proposes a $5 billionper-year, 10-year cut in direct payments under the next farm bill. Thompson understands the
political challenge in defending a program that’s “sending out big checks in years of record high farm income.” However, he said downsizing direct payments in relation to commodity-specific supports “flies in the face” of 25 years of global trade direction. “Congress looks like it’s hellbent on raiding direct payments — the closest thing we have to (non-WTO-regulated) ‘green box’ policies — in order to preserve (WTO-capped) amber box supports — programs where payments are linked to current market production or prices,” Thompson told FarmWeek. “That flies 180 degrees from everything we advocated in the (previous WTO) Uruguay Round and have advocated to date in the Doha Round. We’ve basically said, ‘We’re not saying governments shouldn’t support their farmers, but we want to move as much support as fast as possible from commodity-specific support in the direction of more generic payments that are not linked to current market production or prices.’”
Sugar is sugar, corn industry group argues Corn Refiners Association (CRA) President Audrae Erickson defends a nationwide campaign designed to inform the consumer “Your body can’t tell the difference” between corn sweeteners and “real sugar.” A chemist can’t, either, she said. U.S. sugar farmers and refiners have filed a lawsuit in a Los Angeles U.S. District Court aimed at halting corn processors from marketing high-fructose corn syrup (HFCS) as “corn sugar” equivalent to cane- or beet-based sugar. The suit targets Illinois-based Archer Daniels Midland Co., Corn Products International Inc., Tate and Lyle Ingredients Americas Inc., as well as Cargill and the CRA. Sugar producers seek to block an ongoing awareness campaign aimed at addressing consumer perceptions that “conventional” sugar is somehow healthier than HFCS. The designation “corn sugar” was promoted amid HFCS’ increasingly negative image in the media and among major food and beverage companies. In fact, Erickson argues the term is both more technically accurate and clearer to consumers. Chemically defined, a “sugar” is one of a group of edible carbohydrates that includes “simple sugars” such as fructose, glucose, and sucrose — i.e., common table sugar. “Sugar is a sugar, whether it comes from high-fructose corn syrup or table sugar,” Erickson related. “It’s important that consumers understand what the different forms of added sugars are in the diet. “As we know, there are many added sugars, whether they come from a maple tree, a honey bee, an agave cactus, a corn plant, a cane plant, or a sugar beet. You can get fructose and glucose from many substances.” CRA provides consumer and food industry information about HFCS at the website {www.cornnaturally.com}. The U.S. Food and Drug Administration (FDA) currently is reviewing CRA’s petition for official use of term corn sugar. The American Dietetic Association (ADA) has determined that HFCS is “nutritionally equivalent to sucrose,” noting both contain four calories per gram and consist of roughly equal parts fructose and glucose. Once absorbed into the bloodstream, “the two sweeteners are indistinguishable,“ ADA stated. The American Medical Association has concluded HFCS is not a “unique contributor” to obesity. But an independent nationwide survey, submitted with CRA’s FDA petition, indicates widespread consumer confusion, Erickson said. As evidence of how that confusion is propagated, ConAgra Foods’ Hunt’s line last year adopted an “HFCS-free” ketchup formula prominently labeled on bottles. — Martin Ross
Page 5 Monday, May 9, 2011 FarmWeek
ENERGY
Economists see oil costs as key food price culprit BY MARTIN ROSS FarmWeek
A growing body of economic research points the finger at petroleum, rather than ethanol, as a key culprit in rising food prices. Iowa State University’s Center for Agricultural and Rural Development (CARD) has concluded increased ethanol production reduced per-gallon gas prices by an
average 89 cents in 2010. Ethanol growth reduced gas prices by 25 cents from 2000 through 2010, and prices could double if ethanol production came to a sudden halt, CARD indicated. Christopher Barrett, an economist with New Yorkbased Cornell University, calls high petroleum-driven fuel prices “a major driver behind increased food prices, hunger,
Biomass outlook bullish, depending on policies U.S. Energy Information Administration (EIA) Administrator Richard Newell sees biomass powering into the future. But policy and the market will determine how much horsepower renewable feedstocks gain over the next 25 years. Based on latest EIA projections of U.S. energy use through 2035, Newell anticipates “significant expansion of biomass as a source of energy supply,” both as a biofuels feedstock and for electrical generation. Currently, oil and other fossil sources account for 83 percent of U.S. energy use; EIA projects that will fall to 78 percent by 2035. Newell sees renewable energy consumption — about 8 percent in 2009 — rising to 14 percent by 2035. He argues there is greater long-term potential for crop residues and energy crops than for forest and wood wastes, though existing production tax credits likely will favor wind and solar power in the near future. Key drivers in biomass growth include the federal renewable fuels standard (RFS2), which mandates 36 ‘ Different policies billion gallons of annual bioare key drivers in fuels use by 2022; state “renewable portfolio” stanthe future of redards that mandate some newable energy. electrical generation from Those change biomass or other renewable sources; and oil prices. over time.’ “Different policies are key drivers in the future of renewable energy,” he told — Richard Newell Administrator, FarmWeek at last week’s U.S. Energy Information International Biomass ConAdministration ference in St. Louis. “Those change over time. Certain policies are currently expected to expire. “If they were not to expire, that would change the future outlook. We do see that having a significant impact on our outlook, both in terms of the renewable fuels standard and state-level renewable portfolio standards that could be changing in the future. “And we could see changes in terms of future (federal) renewable electric power generation support, either through changes in production tax credits or a possible ‘clean energy’ standard.” In terms of the other major variable, Newell anticipates “some small further increases in oil prices” in the near term. In addition, Newell notes the traditional “uptick” in gasoline prices during the peak summer driving season. Newell suggests a possible fourfold increase in biomass electrical generation by 2035. He sees the greatest role for biomass use in “co-generation” with coal and other existing sources, rather than as a stand-alone source. However, he also emphasized the “interconnectiveness” of biomass and biofuels, predicting increased co-generation of electricity alongside liquid biofuels production. “The renewable fuels standard for liquid fuels can have an indirect impact on the electricity sector, because of the potential for electricity co-generation,” Newell said. — Martin Ross
and poverty around the world today.” Barrett told FarmWeek oil prices would remain high “so long as we continue to have political disturbances through the Middle East and North Africa and major oil-producing countries, or at least a perception of uncertainty about the availability of oil and gas.” He said he sees “little reason to believe we won’t continue to see a lot of food price pressure caused by fuel prices.” Beyond farm energy costs, Barrett notes the impact of oil prices on cost of food transportation and exportation. “Surging” grain demand by increasingly protein-hungry nations such as China and India and a weak U.S. dollar also are contributing to what he sees as a “perfect storm” in global price inflation. U.S. Sen. Dianne Feinstein (D-Calif.), who seeks to eliminate the federal ethanol tax credit and imported ethanol tariff, maintained ethanol
incentives “distort markets for food and feed.” But the study by Iowa State economist Bruce Babcock argues ethanol subsidies have played merely “a minor role in determining the size of the corn ethanol industry” and thus have contributed little to
food price inflation. “The (Babcock) report was timely,” said Tom Buis, CEO of the biofuels industry group Growth Energy. “How it plays with Congress may depend on those who want to listen to the facts vs. those who just want to take in the rhetoric.”
Ethanol Continued from page 1 gotten us here is warranted, and we’re willing to go down that road. I challenge any other energy industry to take the same proactive, forward-looking, responsible approach.” Growth Energy supports gradually redirecting the ethanol credit toward fuel infrastructure development, to make biofuels widely available. New legislation by Collinsville Republican House Energy and Commerce Committee member John Shimkus would require 50 percent of new cars to run at least partially on “non-petroleum” energy by 2014. Shimkus’ bipartisan bill requires 80 percent new car compliance in 2016 and 95 percent compliance in 2017. Options include 85 percent ethanol-capable “flex-fuel,” natural gas, hydrogen, biodiesel, electric, and fuel cell vehicles. “We know we’re competitive,” Buis told FarmWeek. “Ethanol’s selling 50 cents a gallon (wholesale) under straight gasoline today — and it’s better for consumers. “We have some barriers in the marketplace: the distribution system and the types of cars that can utilize (higher ethanol blends). Correct that, and we can compete.”
FarmWeek Page 6 Monday, May 9, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We finally had a good week for corn planting here in Northern Illinois. Most of the farmers were planting by Monday (May 2). Even though the soil temperature was only about 42 degrees, the calendar said it was time to plant. We have been lucky to avoid the rains that have soaked other parts of the state, and most fields have dried out pretty nicely. It has been hard to find days to spray because of the high winds, but that also dried out some of the wetter fields. Good luck to everyone planting this week and stay safe. Pete Tekampe, Grayslake, Lake County: A cool, damp week in Lake County. Moisture for the week was under 0.5 of an inch, but the ground is just not drying. Some oats have been planted and a little nitrogen has been applied. Very little corn has been planted. If you were to fly over Lake County, you would realize why it got its name. Hopefully, more planters started Friday. They are calling for rain five of the next seven days. Leroy Getz, Savanna, Carroll County: A dry but cold start for May. Planters started running on Sunday, May 1, and haven’t stopped yet. The percentage of acres planted changes hourly. It was so cold with frost on both May 3 and 4 that I wore insulated coveralls to plant. Yes, I used a tractor without a cab. Highpriced fuel above $4 per gallon and the time restraints are causing some farmers to use tillage shortcuts before planting. Ryan Frieders, Waterman, DeKalb County: I spent a lot of time last week looking at field conditions and waiting for them to improve. Colder temperatures slowed the drying of soils, but finally by the middle of the week conditions improved. Once again, anhydrous application and fieldwork resumed, and some more corn was planted. I have not seen any corn emerged from the soil. Hopefully, the weather forecasts will be wrong and we will get more sunshine and continue getting work done. Larry Hummel, Dixon, Lee County: I’m late, I’m late, for a very important date. Everyone is scrambling like the rabbit in Alice in Wonderland, racing back and forth to get as much corn planted as possible before the next rain moves through. It was a good week, though, with most everyone being able to get into the fields on Monday, May 2. So far, we have been able to dodge a few storms that moved on by late in the week. As of Friday morning, I estimate that 40 percent of the corn is in the ground locally. I started planting soybeans on May 4. The temperature felt more like April 4, but it is late enough that warm weather has to be just around the corner, I hope. Joe Zumwalt, Warsaw, Hancock County: Fairly dry but very cool weather across Western Illinois allowed many producers to return to the fields last week. Many are finishing up corn and a few have been planting soybeans. Lots of activity. Early corn may have been injured from a heavy frost Wednesday morning, but it should recover. I think it’s even too cold for the snakes. As our river level recedes, my heart goes out to all those impacted by the severe flooding to our south. May the near future bring them drier weather. Ken Reinhardt, Seaton, Mercer County: We had a good week of corn planting. A few showers Thursday gave us a little break. Most range from half done to finishing up. Very little corn has emerged, but that would be expected with the lack of growing degrees. It did not feel like corn planting weather with the downright cold temperatures last week. Burndown herbicides are slow in working and many are opting for the iron solution (tillage).
Ron Moore, Roseville, Warren County: We caught a break in the weather and finished planting corn last Wednesday. The corn that we planted on April 11 is just starting to emerge. It is still too soon to see what kind of stands we have. It is amazing that it has taken almost a month to emerge. A lot of people will finish with corn this week if the weather holds. We started planting soybeans on Thursday. We had a brief shower that stopped us, but Friday was sunny and we started again. The markets have reacted to some good planting weather as well. I wish the market understood just how far we are from making a crop this year. Jacob
Streitmatter,
Princeville, Peoria County: Regardless of sunshine or warm weather, a lot of corn was put in the ground last week. Conditions are not ideal, but better than 2009, and the crop should have a better start than 2010. The corn planted almost a month ago needs warm weather soon. Wednesday morning I had ice on the hood of the planter tractor. Hopefully, this week will be warmer and planting will progress.
Tim Green, Wyoming, Stark County: It was a decent week. A few people started planting corn Monday (May 2) but had to pick their fields because it was still a little wet. On Friday the sun was out, so I think there will be a lot of corn planted in the next day or two. A lot of people are worried about corn planted around April 12. It doesn’t seem to be growing as they’d like. Corn planted earlier is coming up and looks decent. There isn’t much of that. People are hoping the rain will miss us, and we can dry things out and get the corn planted. Have a safe spring. Mark Kerber, Chatsworth, Livingston County: Tiles are fixed, yards are mowed, it’s time to plant. Only a few have started planting corn on their drier fields. Most fields Friday were about one good drying day away from being fit to work and plant. Cool and cloudy weather has slowed fieldwork this spring, now a wetter forecast will push us even later for planting. With higher grains prices, this was the year to plant timely with good growing conditions to maximize yields and profits. We will see how this year plays out. Many of us started planting Friday. Much of the corn chemical had been applied the last couple of days. Markets are going down a little with planters rolling in parts of the Corn Belt. Ron Haase, Gilman, Iroquois County: I didn’t introduce myself in the first report, so I will now. I farm on the western side of Iroquois County near La Hogue. I farm with my brother, David. We are the fourth generation of farmers in our family and the third generation at this location. We have been planting all corn on our farms. The last soybeans we planted were in 2003. It rained 0.1 to 0.2 of an inch on May 2 and then anywhere from a sprinkle to 0.1 of an inch on May 5. A few fields still have surface water that needs to drain off. A few planters were in the field planting corn on May 4 and May 5 before the evening shower. Less than 5 percent of the corn in this area has been planted. We have not started planting yet. The cool soils have been slow to dry out enough to allow for fieldwork. The local closing bids for May 5: nearby corn, $6.90; new-crop corn, $6.17; nearby soybeans, $13.10; new-crop soybeans, $12.72. Brian
Schaumburg,
Chenoa, McLean County: Isolated corn planting progress may have brought the area up to 10 percent completed. Only 92 growing degree units since April 15 (normal is 200). That has inhibited emergence and plant growth. The exceptions are the fields carpeted with purple henbit and dandelions. Soil conditions are surprisingly good given the wet spring. Still optimistic for trendline yields or better. Corn, $6.80; fall $6.14; soybeans, $12.99; fall $12.62; wheat, $6.79.
Steve Ayers, Champaign, Champaign County: I saw a few tractors rolling last week, but it was still sticky on top in many places. I drove in fields on Wednesday and was kicking up dust in some areas while nearly getting stuck in others. We had 0.2 of an inch of rain last Sunday (May 1) and another 0.27 of an inch Thursday evening. There are chances of scattered thunderstorms this week. Corn in the area is up and looking pale, but stands look good. USDA had our east-central district stuck at 3 percent planted with 1 percent emerged. Wilfred Dittmer, Quincy, Adams County: We had a few showers Thursday afternoon and evening that did not much more than wet the bottom of the rain gauge. It was clear Friday morning. So, for the week, the rain gauge remained practically empty. Temperatures were still cool at 40 degrees. Some planters started rolling Tuesday and Wednesday, and more probably got going Friday if fields were ready. Some fields are pretty green from the winter annuals, as spraying opportunities have not been all that good. Maybe the season has finally caught up with the calendar. Have a safe week. Carrie Winkelmann, Menard County: We finally got started planting corn and soybeans last week, dodging in and out of small showers. We received 0.35 of an inch of rain, with the majority of it coming Thursday night. The corn that is up in our area looks surprisingly OK to me when I think about the cold and wet conditions it has been trying to grow in. We need some warm weather, but I am just thankful we haven’t had the rain that some of my friends to the south have gotten. I hope everyone hugged their farm mom or wife for Mother’s Day. Remember, it is a stressful time of year and you need to be thankful and appreciative of that farm family support. Tom Ritter, Blue Mound, Macon County: Showers moved in on Thursday evening putting a halt to most planting. A few people did work small acreages of ground, but those people were few and far between on Thursday. Most of the first corn in this area was planted April 8 and then some was snuck in on April 14 and there has been no planting since then. Less than 10 percent of the corn is planted in this area. What has been planted is growing slowly with the cooler conditions. It is very yellow and needing the warm temperatures that are forecast for Mother’s Day and beyond. A lot of fields that have not been able to be worked at all are starting to get a little green and woolly. Most of that ground will be going to soybeans. Todd Easton, Charleston, Coles County: It was another idle week across the area, as a little rain here and there kept fields too wet to work. Producers were crossing their fingers that the rain forecast for over the weekend didn’t materialize into much so we’ll have an opportunity to start some work this week. The corn in the fields had another tough week with the cool and wet weather making for slow growth and slightly pale color. The majority of that corn is entering the V2 stage. The plant life that has been growing rapidly in many fields is winter annuals and early-season weeds, and the muddy conditions have prevented sprayers from doing anything about it. I will keep my fingers crossed that I will have actual progress to report next week. Jimmy Ayers, Rochester, Sangamon County: We started off with 0.2 of an inch of rain on Sunday evening and Monday (May 1-2). We were fortunate to have just a light frost Wednesday morning. A few guys were able to get back into the fields by Thursday. Quite a few areas were planted until Thursday evening when we ended up with a couple more tenths. We were stalled out on Friday morning and looking forward to it drying out so we can get going again. The markets giveth and they taketh away. Quite the ride last week. Hope you made some good sales on those high numbers.
Page 7 Monday, May 9, 2011 FarmWeek
CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: Rain! Markets down! Ugh! Corn that’s up hasn’t grown in three weeks.
David Schaal, St. Peter, Fayette County: We received 0.9 of an inch of rain for the week and still no field progress. The weeds in the fields continue to grow where chemicals have not been applied. Seems we are locked in a wet weather pattern. Farmers are aerial applying fungicide on wheat. Wheat is beginning to head out. Everybody is ready to get going, but we need drier, warmer weather. Mornings last week were pretty cool with the thermometer in the low 40s. The grass in the yards doesn’t stop growing, but mowing lawn doesn’t even work well. Ted Kuebrich, Jerseyville, Jersey County: Jersey County received 0.5 of an inch of rain last week making field activity even later. On Wednesday, the tractors headed back to the field, some putting on anhydrous ammonia and others starting to plant corn. There are fields too wet to get in and do fieldwork — one spray rig tried to do some spraying and got stuck. There looks to be a bumper crop of goldenrod this year in the no-till cornfields. The Illinois River stage at Hardin is at 430.8 feet (above sea level); flood stage is 425 feet. Prices at Jersey County Grain, Hardin: cash corn, $6.97; fall corn, $6.14; cash beans, $13.12; fall beans, $12.61; June/July wheat, $7.16. Dan Meinhart, Montrose, Jasper County: Another wet week. Rained almost every day. The Embarras River is back in its banks after being out most of the week. Some aerial spraying of fungicides on wheat for head scab was taking place. Wild mustard is blooming, creating a very yellow landscape where chemicals have not been applied or tillage done. No fieldwork is in sight for a couple of weeks. Showers are in the forecast for almost every day this coming week. Reports received Friday morning. Expanded crop and weather information available at www.ilfb.org
Dave Hankammer, Millstadt, St. Clair County: It was a relief last week to no longer watch the skies for funnel clouds and dangerous high winds. April ended with sunshine, gusty winds, and overcast skies. May started with high clouds and some sun Sunday morning (May 1), but ended with a shower in the evening. The trend of cool, wet conditions continued through the week with temperatures ranging from the low 40s to the mid-60s as the day highs. The exception was early morning hours of May 4 when temperatures dipped into the low 30s, leaving a light frost in the area. Rainfall from May 1 through May 5 totaled 0.8 of an inch. Fieldwork was at a standstill for the week with the exception of a vegetable farm transplanting a crop in a field of sandy loam soils in the river bottom. The early-planted corn has emerged and the plants are yellow due to the overcast skies and cool temperatures. A few fields I’ve observed from the highways don’t have the uniform down-the-row emergence many farmers take pride in. The wheat crop is progressing, along with the emergence of the seed head. Plant health is now a concern with cool, damp conditions. Dean Shields, Murphysboro, Jackson County: After making my last report, we received 4 more inches of rain during the weekend, creating a lot of flooding in our area. I have never seen the water so high as it is was Friday in our river bottom area. A few homes have water in them. I have to drive half a mile through water to get to my shop. Things are not very good here in the river bottom area and a lot of other areas of Jackson County. The Big Muddy River is still very high. It was to crest this last weekend. The one good thing is the Mississippi River is going down. There has been absolutely no farming recently. The corn that has been planted doesn’t look very good, and it’s going to have to be patched in if the fields are kept. A lot of the fields are no good at all. Nobody has started planting any beans yet down here. The wheat crop is still coming along on the high ground if it’s not flooded. Some fellows are spraying it with fungicide with helicopters to try to keep it in good shape. We are struggling along here in Jackson County, hoping it will quit raining and the water will go down so we can get started with this year’s crop. We will keep the faith. It will go away, and we will get at it again sometime. Hope everybody else is having better luck and keeping their feet dry.
Rick Corners, Centralia, Jefferson County: A relatively dry week. We had only 3 inches of rain last week. It looked like there was more coming. Only things going on field-related are the airplanes and helicopters spraying wheat. Oh yeah, just took my shoes off and tallied the rainfall for April — 13.6 inches. Kevin Raber, Browns, Wabash County: Record-setting river crests, flooded fields, major roads closed because of water over them — that described last week. I think all rivers and creeks have crested and are on their way down, but most are receding slowly. The only ag-related activity has been fungicide flown onto some wheat fields Randy Anderson, Galatia, Saline County: Hello from soggy Southern Illinois. The rainfall total since May 1 is 5.2 inches. We had two bright, sunny days, and I was able to go out and look at the corn that I planted in April. I feel some fields have good stands, but others will need to be replanted. However, there is no fieldwork being done. Even if we receive no more rain, we are still at least 10 days from any fieldwork. Talked with area producers who farm in the flood plains of Saline County. They feel that some fields won’t be worked until mid-June. To see photos of flooding in Saline and Gallatin counties, go to {dailyregister.com} and click on flooding 2011. Ken Taake, Ullin, Pulaski County: We had more than 5.5 inches of rain Sunday, May 1, through Tuesday, May 3. This has led to more road closings and more homes being flooded. We are fortunate that we live on a hill. Of course, there was no fieldwork done in the past week. I really feel for those people whose homes are getting flooded. It certainly seems like our problems are much smaller. Our local school has been out of session for almost two weeks due to all of the roads being under water. It will be another interesting planting season when it does get started. Please remember to be careful during this busy time of year.
Brazilian harvest wrapping up; yields OK BY PHIL CORZINE
I’m on my way home from visiting our Brazilian farms where harvest is over, or at least in its final stage. Our 2,220 acres in Goias finished with Phil Corzine a 49-bushelper-acre (bpa) average, sold at $10.60 per bushel. Thirty days of dry weather in December and too much rain the balance of the year took the top off of what looked like a 54 bpa crop. We are looking at farms in this region to rent for next year, but rents here are high by Brazilian standards — $105 to $120 per acre. Harvest is wrapping up today at our 1,360 acres in central Tocantins, and the outbreak of the disease Mela (a blight) just after planting dropped us to 44 bushels per
acre. Even so, this was a good investment for us. We sold our beans here for $10 per bushel, and we rent this farm for just $60 per acre. At our own farms near Araguacu, Tocantins, we still have about 250 acres left to finish harvesting, but I think that it may be our best yield to date — one field came in at 55 bpa. Our 110 acres of corn
comes out this week. We have pre-sold 60 percent of our corn for $6.90 per bushel picked up at the farm,
so even a poor yield will result in good returns for us. This is my last report for the year, and as a closing observation, I would say that there is a great deal of optimism for the next crop here in Brazil — rents are rising and pastures are being converted to cropland. We are optimistic as well, as we are increasingly working with
investors to partner with us to rent farms to produce soybeans and corn. Contact our office if you would like to learn more about those opportunities. Phil Corzine is general manager of South American Soy, a global production management and investment company. His e-mail address is pcorzine@agpage.com.
Disaster assistance available through FSA USDA Farm Service Agency (FSA) Illinois State Executive Director Scherrie Giamanco last week reminded crop and livestock producers throughout the state who experienced severe damage from flooding and tornadoes that FSA programs may be available to assist with recovery. “Severe weather this spring is making things very difficult for many ranchers and farmers,” said Bruce Nelson, acting national FSA administrator. “Whether it’s wildfires in the Southwest, flooding, or tornadoes in the Midwest, Plains, and Southeast, learning about our FSA disaster programs is an
important first step for producers in the recovery process.” FSA administers several programs that help producers recover from disaster damage and livestock deaths. Among the key programs are the Emergency Conservation Program, the Livestock Indemnity Program, the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program, the Noninsured Disaster Assistance Program, the Supplemental Revenue Assistance Payments Program, and the Emergency Forest Restoration Program for nonindustrial private forest land. Fact sheets for all of these programs
can be found at {www.fsa.usda.gov} by clicking on “Newsroom” followed by “Fact Sheets.” “We encourage all who have suffered a disaster due to the recent severe weather conditions to read the fact sheets and visit their local FSA county office so they get a quick start in the recovery process,” added Giamanco. Additionally, USDA Risk Management Agency Administrator William Murphy reminded federal crop insurance policyholders that they should notify their crop insurance companies as soon as they discover their land is flooded.
FarmWeek Page 8 Monday, May 9, 2011
ACROSS ILLINOIS
State, national broadband maps show gaps in access Comments sought from residents BY KAY SHIPMAN FarmWeek
A digital map showing highspeed Internet availability indicates most of Illinois receives some type of service, but state officials said last week they want the public to let them know about any inaccuracies or data gaps. After checking one of the broadband maps, “farmers complained the data was not reality. That there’s not that speed (of broadband available to them),” said Paul Baker, a web strategist with Chicagobased Webitects. Baker spoke during a webinar last week on broadband maps. Baker discussed his work on an online survey tool, known as a widget, which can be embedded in a website. “This (survey) information would fill in some information gaps and also check (the accuracy) of baseline data,” he not-
‘I see the real use of BroadbandStat will be to zoom in on an area, click, and find an address so I can know the (broadband) carriers in my area.’ — Mike Rudibaugh Partnership for a Connected Illinois
ed. The widget is not yet ready for application, Baker said. The state broadband website {http://broadbandillinois.org} shows a state map that offers information about broadband service providers for a specific address, said Mike Rudibaugh, mapping analysis coordinator with Partnership for a Connected Illinois (PCI). Rudibaugh also reported on BroadbandStat, a mapping tool found by clicking on the “maps” icon at the top of the Broadband Illinois website. BroadbandStat will show county-level coverage of different types of broadband service, such as cable, fiber
optic, and DSL. “I see the real use of BroadbandStat will be to
zoom in on an area, click, and find an address so I can know the (broadband) carriers in my area,” Rudibaugh said. PCI officials want public feedback about the usefulness of BroadbandStat and any missing information, he added. Brian Webster, PCI data collection coordinator, explained Illinois information also is available on a national broadband map at
{http://broadbandmap.gov/}. However, the national map is updated ever y six months, unlike the state map, which is updated more frequently, he explained. T he national map will display one or more types of available broadband ser vice simultaneously and will show other types of site-based data, he said.
$14. 8 million
USDA to fund 3 Illinois broadband projects USDA announced recently three Illinois broadband projects were among nine telecommunications projects nationwide that will receive Rural Development funding. The Alhambra-Grantfork Telephone Co., based in Madison County, was awarded an $8.7 million loan to make system improvements. The money also will be used to buy fiber-to-the-premises (FTTP)
electronics equipment to enhance consumer services. Woodhull Telephone Co., based in Henry County and serving customers in Woodhull, Alpha, and Ophiem, will receive a $3.4-million loan to bring FTTP to all its subscribers. The company will bury 111 miles of fiber optic cable. Oneida Telephone Exchange located in Knox County serves the communities of Oneida and Rio. It was selected to receive a $2.619 million loan to provide FTTP for all 457 subscribers, make other improvements, and connect four new customers. “It’s gratifying to know that Illinois is being so proactive in bringing connectivity to our rural communities and remote locations,” said Colleen Callahan, state director for Rural Development in Illinois.
“These telephone companies are making a significant investment, and USDA Rural Development is proud to be part of their efforts. We look forward to working with more telephone companies. Loans of nearly $40 million were awarded for projects in Illinois, Georgia, Iowa, Kansas, North Dakota, Montana, and Oklahoma. The telephone companies and cooperatives that have been selected to receive the financing will construct more than 1,000 miles of FTTP systems. USDA published a notice in the March 14 Federal Register soliciting applications for funding. Applications are being accepted on an ongoing basis. Details on how to apply are available at {www.rurdev.usda. gov/utp_farmbill.html}.
Farmers’ market guidebook offered
The 2011 edition of Prairie Bounty of Illinois, a free directory of direct-from-the-farm sellers and farmers’ markets sponsored by Illinois Farm Bureau and the Illinois Specialty Growers Association is now available. The farm section of the directory contains the contact information and locations of more than 900 individual growers, arranged by county and in alphabetical order. There, consumers will be able to find a FarmWeekNow.com farm’s contact information, Yo u c a n d o w n l o a d t h e products available, and method 2011 Prairie Bounty farm- of sale (roadside stand, u-pickers’ market director y at /cut, wholesale, etc.). The second section lists all FarmWeekNow.com farmers’ markets in Illinois, arranged alphabetically by city. “People are really interested in this kind of information,” said Diane Handley, affiliate association manager for IFB. “We’re seeing more farmers’ markets spring up every year because consumers are starting to look for locally grown fresh farm produce,” she said. The publication is free, but those interested in a hard copy may send $3 for postage and handling to Cashier, Illinois Farm Bureau, Attn: Prairie Bounty, P.O. Box 2901, Bloomington, IL 61702-2910. The directory is also available at county Farm Bureau offices, or via free PDF download at {http://www.specialtygrowers.org/} . The online directory is constantly updated as growers add their names and markets to the system. The printed copy is run twice a year. Growers not listed in Prairie Bounty may contact Handley at 309-557-3662 or via e-mail at handley@ilfb.org for instructions on how to register.
Page 9 Monday, May 9, 2011 FarmWeek
WHEAT
Heavy rains raise concerns about wheat scab fungicide on his wheat fields. “We have the perfect conditions for a widespread outbreak of scab and disease problems,” Stallman said. “I’m going to do whatever I can to protect my crop.” Most of Southern Illinois at the end of April was listed as having medium to high risk of FHB, according to the FHB risk assessment tool available at the website {www.wheatscab.psu.edu}, Carl Bradley, University of
BY DANIEL GRANT FarmWeek
Heavy rain the past month, particularly in Southern Illinois, has wheat growers on high alert for an outbreak of fusarium head blight (FHB), commonly known as scab. Steve Stallman, a wheat grower from Chester in Randolph County and president of the Illinois Wheat Association, last week contracted for aerial applications of
FarmWeekNow.com Check the latest wheat scab forecasts for Illinois at FarmWeekNow.com.
Illinois Extension plant pathologist, reported. Fungicides most effective against FHB and the associated mycotoxin deoxynivalenol (DON) are Caramba, Prosaro, Folicur, and other tebuconazole products,
according to Bradley. “For fields that will be flowering this week, a foliar fungicide suppression of FHB and DON is recommended for fields in the medium-to high-risk areas,” Bradley said. “FHB can cause both yield and quality losses.” Stallman last week estimated about half his crop was headed out. And his far m the past three weeks received more than
Wheat Association hosting winter wheat tour Illinois wheat growers this month will have an opportunity to tour winter wheat fields and make observations that will factor into yield estimates for the 2011 crop. The Illinois Wheat Association (IWA) will host the Illinois Winter Wheat Tour on Thursday, May 26. The
tour will include field checks during the day and an evening report session at the Jim Rose farm near Salem. Attendees also will have an opportunity to view wheat variety and seed treatment trials. Tour participants will meet at 9 a.m. at one of
FROM THE COUNTIES
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ASALLE — A new local discount is available to LaSalle County Farm Bureau members from local Subways in Oglesby, Ottawa, Peru, and LaSalle. A 6-inch sandwich, 21-ounce drink, and choice of chips, apple slices, yogurt, or two cookies are $5. EE — Lee and Whiteside County Farm Bureaus will sponsor a bus trip Wednesday, July 20, to see the Chicago Cubs vs. the Philadelphia Phillies game at Wrigley Field, Chicago. The game is at 1:20 p.m. Cost is $60 for members and $65 for nonmembers. Registration and money are due to the Farm Bureau office by Wednesday, June 15. Registration will be on a first-come, first-served basis. Call the Farm Bureau office at 815-857-3531 for more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday, May 18, at the Farm Bureau office. A pork cutlet luncheon will be served. Cost is $8. Peggy Kessinger and Russell Young will provide the enter-
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Correction The IAA Foundation awarded a general scholarship worth $3,000 to James Leigh, Minonk, son of William and Deborah Leigh. His major is engineering at the University of Illinois. An incorrect name had been supplied to FarmWeek.
tainment. Call the Farm Bureau office at 217-532-6171 by Friday for reservations or more information. • The Prime Timers will sponsor a bus trip Wednesday, June 1, to see “Cats” at the Little Theatre on the Square, Sullivan. Cost is $52. Call the Farm Bureau office at 217532-6171 by Friday for reservations or more information. • The Prime Timers will sponsor a bus trip Friday, June 24, to see “Encores” at Conklin’s Barn II Dinner Theatre, Goodfield. Cost is $59. Call the Farm Bureau office at 217-532-6171 by Friday, May 20, for reservations or more information. You must be a member of the Montgomery County Farm Bureau and be 55 years of age or older to participate in Prime Timer events. TARK — Stark and Henry County Farm Bureaus will sponsor their annual golf outing Friday, June 10, at Baker Park, Kewanee. Cost is $35 for Farm Bureau members and $55 for nonmembers, which includes golf, cart, and lunch. Proceeds will benefit each county’s Agriculture in the Classroom program. Call the Farm Bureau office at 286-7481 by Monday, June 6, for reservations or 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 office.
three locations: Siemer Milling Co., 111 W. Main St., Teutopolis (217-857-3131); Mennel Milling Co. of Illinois, 415 E. Main St., Mt. Olive (217-999-2161); or Wehmeyer Seed Co., 7167 Highbanks Rd., Mascoutah (573-579-3211). Participants are asked to call in advance the location from which they would like to depart. They also are asked to make reservations for dinner by contacting the
IWA office at 309-557-3619 or by e-mail at cblary@ilfb.org by May 24. Those unable to attend the daytime tour but who are interested in taking samples on their own and joining the group for the dinner and the wrap-up report also should RSVP IWA by May 24. IWA will provide instructions to those taking independent samples to ensure sampling procedures are consistent.
a foot of rainfall. “That’s a real concern right now,” he said. “The ground is super-saturated.” The majority of the wheat crop in Illinois as of last week remained in good to excellent condition. The crop the first of last week was rated 54 percent good to excellent, 36 percent fair, and 10 percent poor or very poor, the National Agricultural Statistics Service Illinois field office reported. “Nitrogen was applied in good time (this spring) and the wheat right now looks very good,” Stallman said. “But it all boils down to if we can get the head to pollinate and fill out. We’re at a very critical point in the growing season.” Foliar fungicides are the only in-season control option for FHB and DON. However, one of the best management practices for the disease is to choose wheat varieties with a moderate level of FHB resistance, Bradley added.
FarmWeek Page 10 Monday, May 9, 2011
PROFITABILITY
Selecting diesel fuel additives important Reduction of USDA reports KEN REICHERT engine deposits and the formation of sludge. could increase market volatility BYModern They also help extend filter life. diesel engines are engineered with BY DANIEL GRANT FarmWeek
Commodity traders, analysts, and others in the industry last week urged USDA to maintain its full schedule of livestock slaughter reports. The reaction came after USDA last week notified the trade that slaughter data were unavailable for publication for the week and possibly longer. The situation reportedly was tied to problems with a new computer system at the Food Safety and Inspection Service (FSIS), which provides daily counts of animals slaughtered in roughly 800 federally inspected plants. FSIS also is shifting more of its resources to food safety and fewer to daily slaughter reports, according to the CME Group Daily Livestock Report. The livestock slaughter data are “critical pieces of information” that allow those in the trade to properly assess meat supplies and prices for livestock and meat prices, authors of the Daily Livestock Report noted. Analysts and traders are concerned that without the slaughter data the livestock markets could become even more volatile. The reports provide such information such as total pounds slaughtered and a breakdown of the animals by type. “If we (traders/analysts) don’t get the poundage number for weekly meat output, we’ll all be guessing on the supply of meat entering the market any given week,” said Dale Durchholz, AgriVisor market analyst. “It adds a huge degree of uncertainty and makes the playing field much less transparent.” And that could lead to even higher meat prices. “The minute you don’t know the supply, everybody in the system will start tacking on a risk margin,” Durchholz said. “In the end (consumers) will end up paying more for meat.” USDA also has considered reducing or eliminating weekly crop progress reports reportedly as part of a plan to reduce federal spending. Analysts suggested that without weekly estimates of the condition of crops there could be even greater speculation in the futures markets. USDA as of presstime Friday had not answered inquiries from FarmWeek about the status of its reports.
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $18.50-50.44 $35.64 $71.60 $71.60 n/a n/a This Week Last Week 29,774 31,649 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $86.42 $89.67 $63.95 $66.36
Change -3.25 -2.41
USDA five-state area slaughter cattle price Steers Heifers
This week 113.95 113.93
(Thursday’s price) Prv. week Change 116.38 -2.43 116.10 -2.17
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 133.39 3.39
This week 130.00
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 125-180 lbs. for 165.59-210 $/cwt.(wtd. ave. 186.43); dressed, no sales reported.
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 4-28-11 5.5 36.4 34.6 4-21-11 11.0 28.8 36.6 Last year 8.6 19.2 33.6 Season total 1351.1 1129.3 1156.3 Previous season total 1312.7 779.1 1171.1 USDA projected total 1580 1275 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
sophisticated electronic controls, high-pressure common rail injector systems, complex exhaust systems, and unique designs to maintain horsepower while meeting ever-tightening Environmental Protection Agency emission standards. Experts from the Society of Automotive Engineers and from original equipment manufacturers recognize that diesel fuel performance can be enhanced by the addition of a well engineered fuel additive package with beneficial components that increase performance, protect vital engine parts, and improve Ken Reichert the efficiency of combustion. When selecting a performance diesel fuel additive, select one with specific, measurable components that enhance diesel fuel performance such as the following: Cetane improvers enhance fuel ignition quality, provide quicker engine starts, and reduce knocking to extend engine and component life. Detergents remove fuel injector deposits and restore or maintain injector spray patterns for more power and better fuel efficiency. Corrosion inhibitors protect injectors and fuel systems from corrosion and rust. Lubricity enhancers provide a protective lubrication layer on pumps and injectors to increase fuel system life and are especially important when using ultra low sulfur diesel fuel. Oxidation inhibitors help maintain fuel quality and increase storage life while preventing
Stability components help maintain fuel thermal stability as fuel is heated during engine operation. Thermal stable fuel is important as heated fuel accelerates oxidation. Demulsifiers and moisture control agents handle water that is naturally found in all diesel fuels or is introduced into the fuel through condensation in storage tanks. These components minimize the negative effects water can have in fuel systems and discourage microbial growth in stored fuel. When choosing diesel fuel to purchase, the eight individual components described above combine to make a preferred fuel providing the performance, efficiency, and protection you deserve. A qualified diesel fuel performance package should have claims based on collaborative scientific data from engine stand tests, ASTM petroleum tests, light and heavy duty field tests, rough-duty cycle concrete fleet tests and dynamometer-rated farm tractor tests. These tests control the variables that affect diesel engine operation so that results can be measured accurately. To make sure you are using diesel fuel that meets all the requirements of today’s sophisticated diesel engines and will perform as required, contact your local FS member cooperative petroleum specialist. Ken Reichert is GROWMARK’s refined and renewable fuels sales manager. His e-mail address is kreichert@growmark.com.
Diners returning to restaurants — for now High gasoline prices expected to eat into food budgets Data from the National Restaurant Association showed U.S. consumers in March actually dined out more despite limited economic recovery (the unemployment rate that month was 8.8 percent). The Restaurant Performance Index (RPI) in March reached 101 for the second time in four months (levels above 100 indicate expansion in the industry). In fact, the RPI for the first quarter this year was at its highest level since the prerecession summer of 2007. A large portion of the restaurant industry predicted a boost in sales this year after a down year last year. A survey by the Nation’s Restaurant News newsletter showed 70 percent of respondents predicted an increase in restaurant sales this year compared to last year (see graphic). The trend toward more dining out generally is supportive of meat and livestock prices. However, some economists recently questioned if consumers will continue to buy as much pork and beef at record-high prices. “With some weakness in the U.S. economy and gas prices going up fast, consumers are finding disposable income getting squeezed,” Ron Plain,
University of Missouri ag economist, recently told FarmWeek. “I’m worried meat demand will back down.” The average price of gasoline last week in Chicago reached an all-time high of $4.44 per gallon, which was a dime more than the previous record of $4.34 per gallon in July of 2008, according to the Automobile Association of America. Nationwide, prices at the pump the first of last week averaged $3.96 per gallon for regular gasoline, up $1.06 from last year, and $4.12 for diesel fuel, up $1 from a year ago, the Energy Information Administration reported. “High gasoline prices have depleted disposable incomes, very likely reducing meat expenditures at both retail and foodservice,” authors of the CME Group Daily Livestock Report noted. Meanwhile, food prices continue to increase as the result of historically high energy and commodity prices. USDA this
year projected a 3 to 4 percent increase in food prices, compared to a 0.8 of a percent increase last year, but some economists speculated the current estimate could be low. USDA projected beef prices this year could rise 7 to 8 percent while pork prices could increase by 6.5 to 7.5 percent. “Chicken prices have not risen, making that product cheap relative to record-high beef and near record-high pork,” according to the Daily Livestock Report. “That should be a drag on demand.” A Nation’s Restaurant News survey found restaurant operators have responded by making value pricing the most important part of their menu strategies this year. However, passing higher costs to consumers this year look to be a “sure thing,” the newsletter reported. Now, only time will tell if consumers can stomach the higher prices or if they’ll cut back on food purchases. — Daniel Grant
FarmWeek Page 11 Monday, May 9, 2011
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Commodity bloom wilts While it is much too soon to pronounce this year’s commodity bull market dead on arrival, the break last week had all the earmarks of a possible shift in the trend. The fact that the Reuters/Jeffries Commodity Research Bureau (CRB) Futures Index broke hard after failing to get through a critical resistance level was a sign this move up in commodity prices might be coming to an end. And the “Johnny come lately” to the commodity rally, silver, declined 34 percent last week after temporarily overcoming its 1980 all-time high at $48.80. At this writing, there’s talk of how commodity prices quickly recovered from hard sell-offs the past three times since the rally started last summer. The Reuters/Jeffries CRB Futures Index tested — but did not drop below — key support
at March’s 337.44 low on last week’s break. That leaves it confined in range bounded by that low and the recent high at 370.72. But a close below that March low would signal commodity markets are moving into a more extended decline. There’s a key difference between the current situation and those prior breaks over the last year. Major financial institution players in the commodity industry have told their clientele to pare commodity portfolios because of high risk over the next few months. Even Friday, one of those institutions, Goldman Sachs, indicated it saw further shortterm downside risk in crude oil even though it still had long-term expectations for higher prices. And even as commodity prices rebounded last Friday behind the positive U.S. jobs number, none overcame important short-term resistance points. No doubt there’s a lot of uncertainty ahead, grain production and prices included. But it seems the market already has gone a long way toward building in possible “what ifs” for production shortfalls and tighter supplies. What few seem willing to address are the price implications if production is reasonably good and economies and demand slow down. As Goldman Sachs and others warned their clientele, risk is high. Risk is high for you, too. Make sure you manage it effectively. 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.
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2010 crop: Recent action suggests a significant top may have been seen. If July futures close below $7-$7.05 support, odds of seeing a new high decline significantly. Use rallies to wrap up sales, even “gambling bushels.” Hedge-toarrive (HTA) contracts for summer delivery are the best tool, especially with the flood weighing on interior basis levels. 2011 crop: December futures continued to hold $6.50 support. However, if penetrated, the market would be positioned to test critical support at $6.25. A close below that would be a strong sign an important top may have been seen. Last week’s performance dictates you get new-crop sales to 40 percent. Once we feel more secure that planting is accelerating, plan to increase sales to 50 percent. Use HTAs for fall/early winter delivery for making sales. Fundamentals: Even though weather is not allowing the crop to be quickly planted, progress is being made. Weather remains a little wet, but there are subtle signs change may be coming.
Soybean Strategy 2010 crop: Last week’s break effectively closed the door on higher prices unless summer weather becomes an issue. Use any rally to get oldcrop sales wrapped up. 2011 crop: New-crop uncertainty may be supportive, but softening Chinese demand and rising South American numbers will leave prices with a more negative bias. Evidence grows stronger that November soybeans have built a double top. Increase your new-crop sales to 50 percent on a conservative yield now. We continue to prefer fall/early winter HTA contracts. Fundamentals: The lack of an early start to spring planting this year all but ensures soybean acreage will be larger than USDA forecast in March. And even though there will be some uncertainty on double-crop plantings because of flood issues, there’s still plenty of time for flood
waters to recede, allowing for timely planting in the south. And there still is a possibility the rate of growth in Chinese demand may be moderating.
Wheat Strategy 2011 crop: A significant short-term top has been put in place in the wheat market. Technical damage was done when Chicago July futures closed below key short-term support at $7.65. This opens the door for it to test $7. Check the Hotline frequently; we could recommend additional new-crop sales at any time. We anticipate a rebound once
this liquidation break ends. We prefer HTA contracts, especially for winter delivery if you have the capability to store wheat. Fundamentals: This recent break in the market appears to be tied to fund liquidation and not fundamental news. Fundamentals remain somewhat supportive as the Kansas wheat tour reported potential for a significant reduction in yield if some of the regions do not pick up much needed moisture in the next few weeks. In addition, spring wheat planting progress has been the slowest in more than 25 years. But world output still looks somewhat better this year.
FarmWeek Page 12 Monday, May 9, 2011
PERSPECTIVES
Five tips for farmers taking the social media plunge Have you set up your farm’s Facebook page yet? Following #AgChat on Twitter? Or have you posted YouTube videos about life during the planting season? If you panicked when answerMICHELLE DAMICO ing “no,” guest columnist relax. The social media wave has been building for the last couple of years and it still hasn’t crested. While it’s all the rage in the media, using the social web as a marketing tool is still in the early stages of development, and now is the right time for you to take the plunge. With the
astounding number of 500 million-plus accounts on Facebook and 175-million on Twitter, farmers have an opportunity to connect with customers, grow customer loyalty, and plant seeds for new sales. It’s easy to become overwhelmed by the news about farms and other agribusinesses using social media. The following tips are aimed at calming your anxieties and helping you manage daily farm routines and a social media presence. Tip 1: Choose just one social media platform. The obvious choice is Facebook. It has more users who visit more often. Facebook says it has 500million active users with half logging in on any given day to update their status and check what friends and businesses
are doing. The population of active Twitter users is far less — at most, a third of Twitter signups actively are following others or engaged in conversations online. Tip 2: Know your objective. Farmers plant seeds every spring to sell product in the marketplace. Why are you planting seeds on social media? Looking for more customers? Trying to raise awareness about what you do and the quality of your produce? Staking a position on a topic that stirs your passion? These are all valid reasons to be on social media. Focus on one of these objectives and stick with it. Tip 3: Create your message. Ask yourself, “What does my audience need to know about me and my farm?” How can you frame a compelling message using a combination of photos, text, or other content? One good exercise is to sit down and jot down answers to the following questions: Who are you? What do you do and how does it help your customers? How are you different? Why does it matter? How does your product or service make people feel? That last question about feelings usually raises eyebrows, but
it is true. More often than not, consumers buy things because of the way they feel about it. They buy from farmers because they feel good when they provide fresh, quality food for their families; get advice on how to prepare it; know the source of their food; and support community farms and agribusiness. Tip 4: Engage with your followers. That’s often the toughest part of social media. Your focus should be on how you’ll provide value to your customers and establish a dialogue with them. Talk to people, do not talk at them with advertising, price listings, or constant self-promotion. For example, do customers love your corn? Show them the care and hard work involved in planting and the growing season. Use narrative and photos. Keep it short, because people don’t have time to read lengthy passages. Want to put a face on the family farm? Invite questions and answer them in a timely fashion. Don’t have an antisocial media presence. The farms and businesses that have a Facebook profile and stand silently against the wall, refusing to acknowledge or respond to those around them will not provide a rich experience for
A view on New Zealand farms, environment After a recent trip to speak at a dairy conference in New Zealand, I came away wondering if New Zealand farming systems are ahead of those in the United States or if they are charting their own course. The key issue is the relationship between farming and the environment. The operation of New Zealand dairy farms has become a function of environmental regulations. WILLIAM Production BAILEY decisions — how many cattle to graze or what type of grass to plant for grazing — are driven by environmental concerns and associated environmental regulations. While U.S. farmers certainly care, are environmentally aware, and attempt to farm in a manner that is sustainable and environmentally friendly, environmental issues have not become the central theme of their farming operations. The extent of the importance of environmental regulations in New Zealand dairy farming was underscored at the conference by
the comprehensive discussion among participants on how to best balance production and environmental issues. The point was not just to maximize how much milk a given pasture could provide if enough cows were put on it. The conversation was on techniques to have profitable (if not profit maximization) production with being environmentally aware. And environmental discussion spanned topics such as nutrient management, effluent systems, water quality, and climate change. The reason for the interest is the New Zealand government’s very clear emphasis on improving the New Zealand environment and contributing to solutions to global environmental challenges. The government’s central motivating direction is for dairy farmers to remain in compliance with a vast array of environmental regulations. Not to do so could end up in farmers being fined and, potentially, losing their farm. Serious stuff. And the rules are very specific — the nutrient budget or run-off indicates that as nitrogen fertilizer is applied to farmland, any resulting fertilizer run-off cannot
exceed 150 kilograms (330 pounds) of nitrogen per acre per year. If those levels are exceeded, you are in trouble. Such rules require — not suggest but require — farming practices meet certain measurable goals not seen in the U.S. Meeting those goals may well require investment in excess of $100,000 — with no government help. If one wishes to remain in farming, very specific and measurable performance is required. So, is this the direction U.S. agriculture is headed? While many U.S. farmers do farm in an environmentally aware fashion, short of a dramatic chemical spill, the consequences of broaching many regulations, none as detailed as the 150-kilogram-level above, are often nonexistent. Will that change? Will the American public demand it? That is what is happening in New Zealand. Do farmers want that? More importantly, does the non-farming sector want that? William Bailey is the director of Western Illinois University’s School of Agriculture, Macomb. His e-mail address is WC-Bailey@wiu.edu.
their followers — nor will they maintain those followers very long. Seeking to elevate your leadership or expertise on agriculture? Post links to your own original web content or direct others to items that pique your interest. Ask them if it gets them excited, too. Tip 5: Be genuine. Let down your guard a bit and show your vulnerabilities. Try to walk in your followers/customers shoes to better understand what is most important to them. If you have an idea, test it on Facebook. Your followers instantly become your own focus group and their answers may startle or enlighten you. Social media is the Wild West of marketing now, and making mistakes along the way is OK and tolerated. Being genuine, learning from your mistakes, and being honest with your followers only will create a more loyal and lasting bond with your audience. Michelle Damico is a public relations/marketing professional and a former journalist who counsels farms, businesses, and government on how to generate valuable word-of-mouth through public relations and the social web. Her e-mail address is michelle@michelledamico.com.
LETTER TO THE EDITOR C02 may have value in reviving oil wells Editor: Letters to the editor in the April 25 issue about FutureGen clearly indicate that this project should be halted. This project hasn’t been thoroughly thought through. Capturing C02 from a coal-fired power plant may well have merit. However, it should not be treated as a waste product and a potential hazard. C02 has value. Southern Illinois was once a major oil- and gas-producing area and still has producing wells. Could the C02 be used to revive gas and oil production in Southern Illinois? Pre-World War II we were a major oil producer. GEORGE M. MILTON, Plainfield
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