FarmWeek April 4 2011 by Illinois Farm Bureau

FARM BUREAU and Extension are offering a service that benefits residents and the economy in Marshall and Putnam counties. .....5

ILLINOIS FARMERS plan to plant a great many acres this spring, but the weather doesn’t appear as though it wants to cooperate. .......6

A CONCERTED EFFORT is being made to expand involvement in the Illinois Farm Bureau Young Leaders program. ..........................12

Monday, April 4, 2011

Two sections Volume 39, No. 14

More corn, fewer bean acres forecast BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

Corn prices apparently have been high enough in the winter and so far this spring to encourage farmers to plant more kernels in 2011. USDA, in its highly anticipated prospective plantings report last week, projected U.S. farmers this spring will plant 92.2 million acres of corn, up 5 percent from a year ago. If realized, U.S. corn plantings this year would be the second-highest since 1944 when 95.5 million acres was planted (farmers in 2007 planted 93.5 million acres of corn). “It’s a very sizable corn number,” said Jerry Gidel, analyst with NARMS Futures Trading, during a teleconference hosted by the CME Group. “And the wheat numbers are up sharply, too.” USDA projected winter wheat seedings are up 10 percent this year compared to last year while spring wheat seedings are

projected to grow by 5 percent. All wheat acres were projected to total 58 million, up 8 percent from a year ago. “There’s no shortage of wheat out there,” said Clayton Pope, AgriVisor market analyst. But there is concern about tight corn and soybean supplies. Stocks in all positions as of March 1 were down 15 percent for corn and 2 percent for beans compared to the same time last year.

FarmWeekNow.com Details of the planting intentions and grain stocks reports are at FarmWeekNow.com.

And that concern was exacerbated by the fact that USDA projected farmers this spring will plant 76.6 million acres of soybeans, which was below trade expectations and 1 percent fewer acres than a year ago. “The soy numbers are bullish,” said Jack Scoville, analyst with The Price Futures Group. “It (the tightening supply) is not implying much in the way of rationing.” In Illinois, farmers are expected to plant 12.8 million acres of corn, up 2 percent from last year, and 9.1 million acres of beans, equal to last year. Crop prices, after the report was released on Thursday, surpassed key benchmarks. July corn raced above $7 per bushel, May soybeans surpassed $14, and July wheat rallied above $8. The analysts predicted the crop markets will remain on edge throughout the planting season. “This report does nothing to dispel any weather concerns at all,” Scoville said. See Corn, page 6

FINAL PREPARATIONS

Farmers throughout Illinois are making their final preparations before hitting the field to plant 12.8 million acres of corn this season. Here, Brandon Graves, left, and his father, Dennis, center, work at greasing a piece of tillage equipment while Dennis’ brother-in-law, John Snider, looks on. Brandon’s twin brother, Blake, also is involved in the family’s Lake View Grain Farms near Olney in Richland County. (Photo by Ken Kashian)

Obama offers clear, strong biofuels support BY MARTIN ROSS FarmWeek

The White House last week offered perhaps its strongest support yet for biofuels. That came amid ethanol/biodiesel industry assurances that coming renewable fuels demand can be met. As Mideast tensions intensified, President Obama issued a new energy “blueprint” aimed at reducing the U.S.’ current 11 million barrels in daily oil imports by a third by 2025. Obama advocated “safe and responsible” domestic oil and natural gas development. At the same time, he backed efforts to commercialize “promising cellulosic and advanced biofuels technologies,” acknowledging corn ethanol is “already making a significant contribution to reducing our oil dependence.” “Our best opportunities to enhance our energy security can be found in our own backyard,” said the president. The Renewable Fuels Association noted overall energy prices are at their “steepest sustained rate of gain since 2008,” while ethanol is contributing to the domestic economy in the form of feed co-products (nearly 35 million metric tons produced in 2009-2010) and other potential byproducts (see page 3). “In the last couple of his speeches, (Obama) kind of danced around and never really talked

FarmWeek on the web: FarmWeekNow.com

about it (biofuels),” National Corn Growers Association (NCGA) President Bart Schott said in an RFD Radio-FarmWeek interview. “This last speech, he was really pretty pro-biofuels.” The president directed that by 2015, all federal fleets use alternative energy vehicles, including ethanol/biodiesel, electric, or “hybrid” vehicles that use both liquid fuel and electricity. He proposed partnerships with companies that want to upgrade their fleets to use renewable fuels. The president’s biofuels support fits well with plans for “reforming” the existing 45-centper-gallon Volumetric Ethanol Excise Tax Credit (VEETC) (see page 3), Schott said. He hoped Obama’s message would resonate on Capitol Hill, where the credit is at risk. After obtaining a one-year extension of the credit in December, NCGA joined with key biofuels groups to promise Congress “VEETC reform,” Schott stressed. The organizations are working with both credit critics and champions to explore how VEETC might be restructured, he said. Schott hailed Obama’s call for development of at least four new commercial cellulosic ethanol plants over the next two years. See Biofuels, page 3

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

FarmWeek Page 2 Monday, April 4, 2011

GOVERNMENT

Quick Takes LUMP-SUM STATE BUDGET NIXED — House Speaker Democrat Michael Madigan and Republican Leader Tom Cross said last week rank-and-file lawmakers would be more involved in this year’s state budget decisions. With the past two budgets, the General Assembly has passed a budget with a lump sum of funds, forcing Gov. Pat Quinn to decide what to fund and what to cut. Getting legislators involved in the process is a change from past practice. Most legislators have had little say about the budget details for much of the last decade. Budget negotiations were conducted primarily by the governor and the legislative leaders of the House and Senate. HOUSE, SENATE REDISTRICTING HEARINGS — The Illinois Senate Redistricting Committee launched the first redistricting hearing in Chicago last week and has five more scheduled. The Illinois House has scheduled 15 redistricting hearings between April 16 and 25. Neither the Senate nor the House has released specific times or locations. Senate hearing dates and locations are: Wednesday, Springfield; April 16, Kankakee and Peoria; and April 19, Cicero. Details are to be posted online at {www.ilsenateredistricting.com}. The House hearing dates are April 16, McHenry, Cicero, and Champaign; April 18, Aurora, Elgin, and East St. Louis; April 19, Waukegan, south suburbs, and Rockford; April 20, South Chicago and Rock Island; April 21, Joliet, Peoria, and downtown Chicago; and April 25, Springfield. Details on the House hearings are to be posted online at {www.ilhousedems.com/redistricting}. FarmWeek will publish more information once it becomes available. DIFFERENT WAVELENGTHS? — Last week, the American Farm Bureau Federation submitted comments to the Federal Communication Commission (FCC) asking the agency to reconsider a decision that has the potential to interfere with farm global positioning system (GPS) capabilities. The FCC granted LightSquared, a broadband network provider, a waiver enabling it to operate high-speed broadband over frequencies normally used by low-powered satellite-based systems, such as GPS systems. AFBF urged the FCC to reconsider the order granting LightSquared authority to proceed with the construction of high-powered cellular base stations which may interfere with the frequency used by the GPS. While supporting rural high-speed broadband services, AFBF argued advances should not be made “at the expense of losing the global positioning system.” GPS is used for precision agriculture, spraying fertilizer and chemicals, and for mapping field boundaries, roads, irrigation systems, and problem areas in fields.

(ISSN0197-6680) Vol. 39 No. 14

April 4, 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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IFB, DOT talk

No resolution on ‘for-hire’ interpretation

BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau and the U.S. Department of Transportation (DOT) last week did not resolve the issue of a new interpretation of federal regulations, but agreed a ruling will be reached in the near future, according to Mark Gebhards, executive director of IFB governmental affairs and commodities. IFB Vice President Richard Guebert Jr. and several IFB staff members met in Illinois with representatives of the Federal Motor Carrier Safety Administration and the Illinois Department of Transportation (IDOT). Recently, DOT interpreted federal transportation regulations to mean farmers who truck their landlords’ share of grain would be considered “for-hire carriers” and would no longer qualify for an agricultural exemption from having to have a commercial driver’s license (CDL). “We had a good discussion; they asked questions; we pointed out what we felt were fallacies,” Gebhards said. “We do not agree with

DOT’s interpretation. We do not feel our folks should lose these exemptions because we do not feel they are commercial carriers.” The IFB representatives explained to both DOT and IDOT officials “how Illinois agriculture functions today, why these (crop-share lease) arrangements are the way they are, and how folks are involved,” Gebhards explained. The crucial point is whether a farmer hauling grain is operating for hire or not for hire. “It’s very technical issue, and our purpose is to get a resolution,” Gebhards added. Without the agricultural exemption, farmers with crop-share leases would need to obtain a CDL and follow drug and alcohol screening and testing rules. The new interpretation does not impact farmers who cash rent farmland. IFB is continuing to take action on the issue while awaiting a DOT ruling, according to Gebhards. “We plan to visit with our congressional delegation and Sens. (Mark) Kirk and (Dick) Durbin about the concerns we have and the impact on our producers,” Gebhards said.

Madigan: Dean Foods lawsuit settlement to benefit consumers Attorney General Lisa Madigan last week joined the U.S. Department of Justice and the states of Wisconsin and Michigan in announcing the settlement of an antitrust lawsuit against Dallas-based Dean Foods Co. As part of the settlement, Dean Foods must sell its milk processing plant in Waukesha, Wis. Last year, a federal lawsuit challenged Dean Foods’ 2009 acquisition of the Waukeshabased plant from Foremost Farms USA. The lawsuit alleged Dean Foods’ ownership of the plant presented serious antitrust concerns and could affect adversely the milk prices for retailers in

Northeastern Illinois. “We are committed to protecting consumers by enforcing the antitrust laws to ensure vigorous competition,” Madigan said. “Allowing Dean Foods to keep the Foremost Farms plant could have resulted in higher prices and solidified a dominant position for Dean Foods in Northern Illinois.” Dean Foods is the largest U.S. processor and distributor of milk and other dairy products. The complaint alleged that after buying the Waukesha plant, Dean Foods had more than 60 percent of fluid-milk sales in Northeastern Illinois, including Chicago.

Dean Foods will have 90 days to sell the Waukesha plant. If it fails to sell the plant, the court will appoint a trustee empowered to sell the facility. The plant’s new owner will have access to all of the Waukesha plant’s assets, including the right to continue the Golden Guernsey and La Vaca Bonita brands. The settlement also requires Dean Foods to notify the Justice Department and the Illinois attorney general 30 days before Dean Foods buys any milk processing plant valued at more than $3 million in Illinois or within 150 miles of its borders.

Governor and premier sign Illinois-Manitoba agreement Illinois and the Canadian province of Manitoba became closer trading partners last week when Gov. Pat Quinn and Manitoba Premier Greg Selinger signed an agreement to boost trade and business opportunities between the two. “Global partners are critical to our efforts to boost Illinois’ economy and create jobs,” Quinn said in a prepared statement. Under the agreement, Illinois and Manitoba will work on collaboration in such highgrowth sectors as life sciences and biotechnology, manufac-

turing, renewable energy, and information and communications technology. Both governments also are to collaborate on trade and tourism opportunities, exchange water and river management best practices, develop collaborative opportunities in conservation and clean energy, and seek opportunities for strategic partnerships and alliances between private sector companies in the state and province. “Illinois and Manitoba share a common history as transportation hubs and centers for

commodity trade and retail distribution throughout North America,” Selinger said. Illinois’ exports to Canada in 2010 were about $14.7 billion — 29.5 percent of the state’s total exports. Illinois’ exports to Manitoba totaled $1.38 billion last year and included construction equipment and farm implements. Illinois’ total exports were nearly $49.8 billion in 2010, a 19.6 percent increase over 2009. Direct exports accounted for 8.2 percent of Illinois’ gross state product in 2009.

Page 3 Monday, April 4, 2011 FarmWeek

GOVERNMENT Johanns fix on way?

1099 requirement a burden for ag, support sector BY MARTIN ROSS FarmWeek

The way’s been cleared for a U.S. Senate amendment that would eliminate prospective tax requirements that would create a “paperwork nightmare” and potential costs throughout the farm community and its suppliers. Sen. Mike Johanns’ (RNeb.) proposal to repeal expanded 1099 reporting requirements was one of 10 initial amendments Senate leaders cleared for potential inclusion in a major small business package under debate last week. That was a potentially positive omen: American Farm Bureau Federation tax specialist Pat Wolff noted 250-plus amendments had been filed. However, while 1099 repeal is

a popular bipartisan cause, Wolff was uncertain whether Senate politics — the spoiler in 2010 efforts to repeal requirements — might threaten passage of Johanns’ amendment. Under new health care law, businesses next year must submit 1099 paperwork to all vendors from whom they purchase at least $600 in goods or services. Johanns targets cuts in health care program spending to offset $22 billion in revenues 1099 requirements purportedly would generate over the next decade. New 1099 requirements “would obviously be a tremendous burden” for GROWMARK, its member service companies, and GROWMARK-FS retailers, according to GROWMARK

legislative affairs specialist Chuck Spencer. Seed, fertilizer, chemical,

“This is a paperwork nightmare. Think about all the transactions that occur with a

‘Think about all the transactions that occur with a farmer that would be $600 or above, when it comes to inputs and crop protective products.’ — Chuck Spencer GROWMARK

and fuel purchases alone would generate “a significant number of forms” for the system to process, Spencer warned. “All our members of Congress continue to signal that this will be taken care of — they’ll find a way to get it passed,” Spencer told FarmWeek.

farmer that would be $600 or above, when it comes to inputs and crop protective products.” Johanns tried to eliminate 1099 requirements late last fall, but lame duck conflict pre-empted both his measure and a competing Democrat amendment which proposed a different plan to pay for

“lost” tax revenues. Wolff raised concerns that Democrats again could offer an alternative plan, especially amid ongoing battle over federal budget issues. Eric Thompson, who operates a machine shop 50 miles southwest of Chicago, characterizes expanded 1099 requirements as essentially a “valueadded tax” on business. Thompson’s business, located “pretty much in the middle of the farming community,” deals with at least a dozen standard vendors and several other secondary vendors and employs an outside accountant to address tax paperwork. “There are three things wrong with government,” he maintains. “One, they look for money. Two, they find money. Three, they take money.”

Ethanol under attack at federal, state levels Proposals aimed at stripping federal ethanol support may not make it off the Senate floor, but a Farm Bureau analyst argues the issue likely will remain on the table — in Congress and state legislatures — for the near future. An amendment to Senate jobs legislation by Sen. Tom Coburn (R-Okla.) would immediately repeal the 45cent-per-gallon Volumetric

Ethanol Excise Tax Credit (VEETC), also known as the ethanol blenders credit. Congress recently extended the credit for corn-based ethanol through 2011. At the same time, Sen. Dianne Feinstein (D-Calif.) proposed extending VEETC only to “advanced biofuels” such as cellulosic ethanol, bumping corn-based ethanol from support.

She also sought to reduce the current 54-cent-per-gallon tariff on imported ethanol by the amount of the blenders credit, which is available to foreign biofuels marketers. Given ethanol support and the sheer volume of proposed small business amendments (see accompanying story), American Farm Bureau Federation tax specialist Pat Wolff questioned how effective new

Illinois zein production could boost market demand A pair of Illinois firms hopes to grow a new biofuels offshoot market by reducing the cost of high-value protein generated through ethanol production. Bloomington-based technology provider Prairie Gold Inc. and Itasca-based ethanol producer GTL Resources USA plan to collaborate on construction of a zein protein production plant to tap materials from corn prior to ethanol production. Zein is a natural polymer that can be used to make hard food or pharmaceutical coatings, confectioners’ glazes, gums, flexible films, and biodegradable plastics and fibers. It is edible and in pure form colorless and odorless. The companies envision an initial 4 million pounds of annual zein production, several times today’s total combined production. By significantly boosting supplies, Prairie Gold President Philip Shane hopes the venture will expand demand and thus improve ethanol profit margins. “The current (zein) market is not big,” Shane told FarmWeek. “Basically, that’s due, we think, to the current price of zein. The current price is around $18 a pound. For food uses, that’s certainly a limit, and in industrial uses, it limits where it can go. Our intention is to bring that down considerably and be able to get into these markets.” Prairie Gold has tested its corn oil-protein extraction (COPE) process at GTL’s Rochelle-area ethanol plant. In 2009, the companies built a 2,400-square-foot pilot

plant on the ethanol site. That plant currently generates roughly 100 million gallons of ethanol annually — enough to draw off an eventual 40 million pounds of zein. Zein production would reduce total volume of ethanol-derived distillers dried grains (DDGs), but Prairie Gold would extract merely solvent-soluble protein, which offers little nutritional benefit for livestock. Shane reported Prairie Gold and GTL have not determined the zein plant siting, though GTL’s Rochelle ethanol plant offers advantages in terms of existing utilities and transportation-manufacturing logistics. The initial plant would be separate from ethanol production facilities, but he said ethanol and zein production in the same plant is “a possibility.” The venture’s prospective initial customer seeks zein from non-GMO corn, and the first plant would acquire and handle grain separately from the ethanol facility. Zein, now applied in pill coatings, could be used in future medications to extend “release” in cases in which they’re better activated in the intestine than the stomach. It can be used to replace wheat gluten in bread — a potentially crucial innovation for persons with celiac disease (gluten intolerance). Further, it improves water or grease resistance and could be used in popcorn bags or doughnut or pizza boxes. Shane sees zeinbased paper coatings for slick publications as another “big potential.” — Martin Ross

efforts to “whack ethanol” would prove. “I know ethanol has trouble,” Wolff told FarmWeek. “I don’t know that there’s going to be trouble on this particular bill, but it gets (the issue) out on the table.” Ethanol continues to generate controversy at the state level, as well. A ban on corn ethanol that passed the New Hampshire House of Representatives “would eliminate the only viable alternative to imported oil available to New Hampshire motorists,” national Renewable Fuels Association President Robert Dinneen told state senators considering the measure.

The bill is “premised on misinformation about the role of ethanol in the fuel market,” Dinneen said. New Hampshire state Rep. David Campbell claimed ethanol was responsible for driving gas prices higher, though ethanol currently is selling at a lower wholesale price than “pure” gasoline. At the same time, Nebraska state lawmakers last week continued debate over a measure to end retail labeling of 10 percent ethanol blends (E10). Nebraska Ethanol Board spokesman Todd Sneller called E10 pump labeling “an archaic requirement in law,” given the blend’s now-standard use. — Martin Ross

Biofuels Continued from page 1 He said he sees progress toward biomass-based production as the industry moves from the idea of strictly standalone cellulosic plants to existing corn-based plant “add-ons” that could tap crop residues and other materials. The biodiesel industry also applauded the White House plan. As the only commercially available fuel today that “works in the existing infrastructure” and qualifies as an advanced biofuel under the federal Renewable Fuels Standard (RFS2), biodiesel can offer “a significant portion of the foreign petroleum reduction goal” sought by Obama, said Alicia Clancy, Renewable Energy Group corporate affairs manager. Clancy noted “the best biodiesel economics we’ve seen in four years” currently exists, resulting from a favorable fuel feedstock market, a coming spring “bump” in farm diesel demand, and a strong outlook for the industry’s RFS2 renewable identification number (RIN) market. A RIN is assigned to a batch of biofuel to track production, use, and trading under the RFS2 mandate. “With the RFS2, there’s demand for biodiesel on a national level, so the value of a RIN is increasing, which offers additional value to that mid-level petroleum distributor,” Clancy told FarmWeek. “Those petroleum ‘jobbers’ in Illinois have an opportunity to blend biodiesel very economically and even offer it on the farm for under the cost of diesel fuel,” she said.

FarmWeek Page 4 Monday, April 4, 2011

ENVIRONMENT

Urgency still seen in NPDES permit debate BY MARTIN ROSS FarmWeek

Despite court extension of the deadline for new federal pesticide permit requirements (see below), now’s the time for Congress to put applicator-agribusiness concerns to rest. So says Illinois Fertilizer and Chemical Association (IFCA) President Jean Payne, who hailed last week’s U.S. House approval of a measure that would eliminate the need for National Pollutant Discharge Elimination System (NPDES) permits for pesticide applicators.

The House bill, which passed 291-130, clarifies that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) is the sole federal authority for pesticide regulation. The Senate must now approve the measure. The U.S. Environmental Protection Agency (EPA) is developing a general NPDES permit under the federal Clean Water Act for aquatic pesticide use. Crop applications currently are exempted from requirements, but Payne warns that producers who treat farm ponds for

Court grants extension on pesticide permit The Sixth Circuit Court of Appeals last week agreed to extend until Oct 31. the deadline for pesticide applicators to obtain permits if the pesticide reaches a body of water, including ditches and culverts. The U.S. Environmental Protection Agency (EPA) had sought the extension of an April 9 deadline. EPA is developing a general permit, known as a National Pollutant Discharge Elimination System (NPDES) permit, in response to the court’s 2009 decision that discharges of pesticides into U.S. waters were pollutants, and applicators must obtain a permit under the Clean Water Act.

aquatic weeds could have to acquire a permit. Amid applicator uncertainty, Payne challenged the argu-

these categories on their license because of this regulation. “It’s not going to be

smaller communities offer mosquito control services at a nominal cost, Payne said. With those applicators poten-

‘This is still an urgent issue.’ — Jean Payne Illinois Fertilizer and Chemical Association

ment that with a delay in permit compliance until Oct. 31 (see accompanying story), there is no rush for Senate action. “Given how long it often takes to pass some legislation in Washington, this is still an urgent issue,” Payne told FarmWeek. “It would sure be nice to know before October whether the issue is resolved or not. “I’ve had numerous members call me, as well as a lot of applicators from the suburbs who have mosquito and aquatic categories on their license, trying to make a decision about whether to keep

worthwhile for them to continue to provide those pesticide services (should they need to obtain a permit).” She said there is concern in Washington that pesticide permitting would be “a much more partisan issue” in the Senate. Sens. Dick Durbin, a Springfield Democrat, and Mark Kirk, a Highland Park Republican, have upheld existing FIFRA authority, and Payne reported Senate Ag Committee member Pat Roberts (R-Kan.) is “leading the charge” to block NPDES requirements. Many IFCA members in

tially “subject to $37,000-aday violations if they don’t do everything right with (permit) paperwork,” rural towns may be hard-pressed to find applicators to provide that service. Further, NPDES regulation sets a “troublesome precedent” for future ag pesticide use. Despite the current scope of permits, Payne noted much of the discussion prior to last week’s House vote focused on ag applications. “I don’t think we’ve ever seen a federal regulation that, once it got on the books, did not continue to grow over the years,” she said.

NRCS sets Illinois rate caps for WRP, GRP Illinois Natural Resources Conservation Service (NRCS) recently updated the payment rates for two conservation programs: Wetland Reserve

Program (WRP) and the Grassland Reserve Program (GRP). Both programs are offered through continuous sign up.

Under the update, payment rates for wetlands account for the difference between the land value of cropland vs. non-cropland, according to Bill Gradle, NRCS state conservationist. New payment rates are based on new marketanalysis data. By selling an easement under WRP or GRP, landowners receive a lump-

sum cash payment in exchange for restoring or converting marginal agricultural land to wetland or for designating grassland for pasture or hay. For 2011, WRP easements on cropland range from $2,800 to $4,400 per acre, while non-cropland per-acre rates range from $2,500 to $4,000 (see

accompanying map). For 2011, GRP rates range from $2,400 to $3,900 per acre (see accompanying map). GRP applicants also may consider using an annual rental rate option for land that cannot be bought or dedicated permanently. To apply or obtain more information, contact your local NRCS office.

CRP general sign-up set to end April 15 USDA Farm Service Agency (FSA) Illinois Executive Director Scherrie Giamanco last week reminded landowners and producers that a general sign-up for the Conservation Reserve Program (CRP) ends April 15. Farmers and ranchers may offer eligible land through the local FSA county office during this sign-up period. “This is the 25th anniversary of the Conservation Reserve Program. CRP has shown great environmental improvements during that time,” Giamanco said. “We want all interested farmers and ranchers to contact the local FSA office to find out how they might offer eligible land for this program which preserves the soil, cleans water, and restores habitat for wildlife.”

CRP is a voluntary program that allows environmentally sensitive land be used for conservation purposes. Producers accepted in the program plant long-term, resourceconserving vegetative covers in exchange for rental payments, cost share funds, and technical assistance. FSA evaluates and ranks eligible land offered for CRP using the Environmental Benefits Index (EBI). The EBI review looks at five environmental factors: wildlife, water, soil, air, and enduring benefits, as well as cost. The land is ranked based on which would offer the greatest environmental benefits. In addition to this general sign-up, CRP’s continuous sign-up program is ongoing. Acres in this program represent the most environmentally desirable and sensitive land.

Page 5 Monday, April 4, 2011 FarmWeek

TECHNOLOGY

Illinois is deploying 3 regional ‘E Teams’ to expand broadband

Marshall-Putnam Farm Bureau board member Jonathan Downey, center, discusses a computer class with Julie Read, a Marshall-Putnam Farm Bureau member. Downey’s fellow board member, Josh Merdian, focuses on a monitor located in a computer lab in the Farm Bureau building in Henry. The three have taken computer classes offered through the local Farm Bureau and Extension offices. (Photo by Anita Wilkinson, MarshallPutnam 4-H coordinator)

Internet access, computer classes win-win for Farm Bureau-Extension partnership BY KAY SHIPMAN FarmWeek Farm Bureau and the Extension Service have nurtured a valuable resource that benefits residents, education, and the economy in Marshall and Putnam counties. The resource includes a wellequipped computer lab with high-speed Internet housed in the Farm Bureau building, and the offering of a suite of computer classes from beginner to advanced levels for a nominal fee. The team effort by Tiffany

FarmWeekNow.com For more information on the Marshall-Putnam computer t r a i n i n g f a c i l i t y, g o t o FarmWeekNow.com

Moody, county Farm Bureau manager, and Anita Wilkinson, county 4-H program manager, has worked smoothly for six years. The lab and equipment was paid for by state and private grants. The Farm Bureau and Extension pay for the maintenance and upkeep. “Tiffany and I keep (class) prices low as a service. We’re not in it for the money; we’re really in it for learning and (computer) use to happen,” Wilkinson said. Moody added: “People have written and e-mailed thankyous, telling us they had felt overwhelmed (before), but they felt comfortable taking a twohour basic class.” The students not only vary in age, but also in computer experience and need. One woman completed all her graduate coursework at the Univer-

sity of Illinois online via the computer lab that is open for students’ use during office business hours. She now is a volunteer teacher of a basic computer class at the lab. The local economies also are benefiting from the computer classes and students’ access to high-speed Internet. Farmers and their spouses have learned computer uses for their farming operations. Some use the highspeed Internet services for offthe-farm jobs. One partner in a local bedand-breakfast business has been able to live in the area and continue working at her job because of high-speed Internet access at the Farm Bureau building. “We have a wonderful resource and the number of computers and the amount of time available (for students) is incredible,” said Meredith McKee, who recently returned to the area from Arizona and is helping with the family farm. McKee praised the mix of classes offered and explained she learned farm-specific computer uses, which are different from those she used as a teacher. She also is applying skills gained from a computer publisher class to update family members about the farming operation. Farmer Dean Bogner said he appreciated the ability to learn from instructors instead of reading a computer manual. “On the grassroot level, it is challenging to find computer classes that cover what you want to cover,” Bogner said. The computer lab has allowed Bogner to communicate large numbers of grower orders for his part-time busi-

ness online, he added. The county Farm Bureau and Extension also are reaping benefits from the classes and lab availability. For example, Moody noted not only has she gained several Farm Bureau members through the effort, but she also sees more associate members on a regular basis. “We’ve (Farm Bureau) gotten community contacts now and other members who are helping,” she said. Extension Master Gardners use the lab, and other Extension volunteers are able to complete continuing education courses online. Despite all their success, the two women can’t resolve the biggest Internet challenge in their counties — poor access to high-speed Internet. “The bigger issue isn’t (not) knowing how to use it (Internet), but the level of frustration with (slower) dial-up service,” Moody said. Meanwhile, the little computer lab that can continues to provide high-speed Internet and foster a sense of community, thanks to a Farm BureauExtension partnership.

The state has organized three regional teams to determine area demand for high-speed Internet services and identify solutions. Jeff Eden, outreach director for Partnership for a Connected Illinois, explained a regional approach to broadband development is the most practical at this point. The Partnership, also known as Broadband Illinois, has information online at {www.broadbandillinois.org}. Illinois Farm Bureau is considering a proposal to work with Broadband Illinois through the “E Teams” for local training and digital literacy classes, said Brenda Matherly, IFB assistant director of local government. “It is not uncommon for our members to rely on county Farm Bureaus for valuable information. Why not Internet?” Matherly asked. “This would be an opportunity for Farm Bureau to provide a valuable service to our members.” Currently, three regional E Teams have been formed (see accompanying map), but Broadband Illinois is developing a team for Western Illinois, according to Eden. Some University of Illinois Extension offices are involved with the three teams, and Eden anticipated Extension also would be involved with other regional teams. E Teams are entities involved with regional broadband projects. Broadband Illinois also is identifying areas that lack sufficient high-speed Internet and will work with prospective Internet service providers, Eden said. Matherly noted highspeed Internet “closes the distance between rural and urban” residents. “With broadband, rural residents wouldn’t have to leave their houses to do banking, renew a library book, or complete and submit a government form,” she said. “There’s also an opportunity to communicate immediately with family members who live far away.” In addition to working with Broadband Illinois, IFB regularly attends Illinois Broadband Deployment Council meetings to represent the needs of farmers and rural Illinois, Matherly added. Eden encouraged residents within the three E Team regions to learn more about them. He said the overall goal is development of broadband statewide. “We need everybody’s help,” Eden summarized. “We need the help of broadband stakeholders throughout the state to contribute to our broadband effort ... to move us forward.” — Kay Shipman

Sample of computer class offerings Marshall-Putnam Farm Bureau and the local University of Illinois Extension office are offering a variety of beginner and advanced computer classes in 2011. The class fee is $10 for Farm Bureau members, registered 4-H volunteers, and local school teachers who use Agriculture in the Classroom materials. Other bi-county residents pay

$15 per class. The following is a sample of the courses: • Mastering the mouse for beginner computer users to learn and practice mouse skills. • Mastering the computer for farmers provides information about using the Internet for marketing, ag agency websites, and weather news.

• Online taxes teaches participants how to navigate tax agency websites to find information for preparing tax returns and options for electronic tax filing. • Flu shot for your computer offers strategies for protecting home computers with virus protection, computer and program updates, and computer maintenance. — Kay Shipman

FarmWeek Page 6 Monday, April 4, 2011

PRODUCTION

Weather forecast not promising for early planting BY DANIEL GRANT FarmWeek

Farmers will need some extra days if they are to plant more corn this season. USDA last week projected farmers will increase corn plantings by 5 percent nationwide and 2 percent in Illinois. Unfortunately, recent weather conditions have been uncooperative, and the forecast isn’t real promising for farmers to get a great start on planting any time soon. “Fieldwork has been very limited as the result of very cool

and wet conditions so far this spring,” the National Agricultural Statistics Service Illinois field office noted last week. The statewide temperature in March averaged 41 degrees, which was close to normal, according to Jim Angel, state climatologist with the Illinois State Water Survey. However, it was a far cry Jim Angel from last year

when the temperature in March averaged 2.5 degrees above normal. “We’re right on target at 41 degrees, but with March you get wild swings,” Angel said. “We had 70s one week and snow was flying another week.” Precipitation for the month averaged 2.8 inches for the state. But Southern Illinois was wet (3 to 6 inches of precipitation), Northern Illinois was close to normal, and parts of Central Illinois actually were as much as 1 to 2 inches below normal for precipitation in March.

“Our first burst of field activity probably will be in the Central part of the state where the soils are drier,” Angel said. A few farmers were applying anhydrous last week. That could change soon, though. Angel reported a large, slow-moving weather system could dump large amounts of rain on the Midwest, including much of Illinois, through Tuesday. “Then we’ll get another break with warmer weather,” he said. In fact, the weather outlook

for April isn’t much more promising. The National Weather Service’s Climate Prediction Center last week called for an increased chance of above-normal precipitation and below-normal temperatures. “There still is plenty of time to get it (corn planting) done, but there will be a lot of concern because of the tight carry,” said Clayton Pope, AgriVisor market analyst. “The market will be more sensitive than before about potential planting delays.”

Bt corn growers can get lost amid the ‘pyramids’ BY MARTIN ROSS FarmWeek

Amid the proliferating corn “stacks” and “pyramids” confronting growers, maintaining the proper refuge is becoming an ever-more-daunting task. More than 90 percent of participants polled at the 2011

FarmWeekNow.com Download the NCGA’s corn refuge calculator at FarmWeekNow.com

Corn and Soybean Classics planted Bt corn in 2010, while 94 percent said they plan to plant it this season. That underlines the importance of grower compliance with U.S. Environmental Protection Agency (EPA) Bt corn insect resistance management

(IRM) refuge planting requirements. National Corn Growers Association (NCGA) Director of Biotechnology Nathan Fields said he has seen no major spillage in compliance over the past few years. But he is concerned about the growing complexity posed by new Bt products. Stacked-trait products address multiple target pests. They may offer above-ground corn borer resistance along with herbicide tolerance and/or below-ground rootworm resistance. An example is Monsanto’s Yieldgard Rootworm corn. A “pyramided” variety offers multiple modes of action against individual pests, attacking insect biology in

various ways or at various stages of development. For example, Monsanto/Dow’s SmartStax technology includes eight GMO traits that collectively control above- and below-ground insects and provide broadspectrum herbicide resistance. Because of that multimodal approach, EPA approved a reduced 5 percent on-farm refuge for SmartStax, as opposed to the 20 percent refuge required for previous Bt products. New on the market is Pioneer’s Optimum AcreMax 1 corn, an integrated “all-in-the bag” refuge product which contains 90 percent of a hybrid with Herculex XTRA insect protection and 10 percent of a hybrid with the Herculex I trait

Crop supply tightens; prices expected to remain high High commodity prices and even the disaster in Japan apparently have not reduced crop demand around the world. USDA last week lowered its estimates for U.S. corn and soybean stocks, which immediately led to rallies in the markets. Corn stocks in all positions as of March 1 totaled 6.52 billion bushels, down 15 percent from the same time a year ago. Soybeans stored in all positions as of March 1 totaled 1.25 billion bushels, down 2 percent. Prices subsequently rallied last week as the stocks estimates were 150 million to 175 million bushels below the trade estimate for corn and about 50 million bushels below the trade estimate for beans. “This really suggests we have not rationed any corn demand at this point,” said Jerry Gidel, analyst with NARMS Futures Trading, during a CME Group teleconference. The stocks-to-use ratio prior to the report was down to

just 5 percent for corn and 4 percent for soybeans. “We’re tight now, and there’s no real projection that the situation will loosen in the next year or two,” said Jack Scoville, analyst with The Price Futures Group. The run-up of oil and fuel prices in recent months increased the premium for producing ethanol from about a dime to a range of 45 to 55 cents per gallon. Ethanol production, therefore, likely will continue to increase despite the higher corn prices, according to Gidel. “As we go into the (spring/summer) driving season, there will be plenty of demand,” he said. The situation is similar in the livestock industry as many producers have remained profitable, despite historically high feed costs, due to record or near-record hog and cattle prices. Elsewhere, the low value of the U.S. dollar has continued to boost U.S. ag exports. The

U.S. even has exported ethanol, according to Gidel, due to a spike in sugar prices that has reduced the amount of Brazilian sugar cane-based ethanol on the market. “We haven’t seen exports slow down at all,” Scoville said. The disaster in Japan temporarily cut into corn demand there, but the island nation already has boosted meat imports from the U.S. and is expected to increase crop purchases from the U.S. to rebuild domestic food production once the infrastructure is in place. All the demand is expected to keep pressure on prices despite the fact that USDA last week projected U.S. farmers this spring will plant the second-most corn acres since 1944 and third-most bean acres on record. “The tighter-than-expected stocks will keep the market attuned to the weather,” Scoville added. “We’re going to need all those bushels next year.” — Daniel Grant

to provide rootworm refuge. The refuge-in-a-bag product allows growers to plant borer refuge up to a half-mile from AcreMax 1 plots, but a separate 20 percent borer refuge is still required. “There are so many different traits and refuge requirements that a lot of people are confused,” Tremont farmer and NCGA Trade and Biotechnology Action Team member Eric Kunzeman told FarmWeek. “The most important thing is that farmers develop a plan before they go to the field. They’ll know where the refuge is and they know what goes in each field.” University of Illinois Extension entomologist Mike Gray anticipates an upswing in Illinois use of “stacked” (multitrait) varieties. But as more pyramided Bt hybrids enter the market, the use of the refuge-in-a-bag approach will become the dominant refuge management practice, he predicted. A number of reduced or

integrated refuge products is in the development/regulatory “pipeline,” the NCGA’s Fields noted. Refuge compliance is becoming “very regionally specific and very product-specific,” he advised. All product bag or bulk seed tags this season must include a clear display of refuge requirements. Plus, NCGA’s downloadable IRM Calculator (at {www.irmcalculator.com}) can help growers tailor refuge for individual products. The free program is complete for all commercial products this season, but NCGA will offer updated versions online as new products hit the market. “Next year, a couple of new (bagged) products will be hitting,” Fields noted. “We know one’s solid; another one, we’re expecting EPA to have a decision on shortly that could be available next year. “By this fall, we should have the (calculator) completely updated for the products that are going to launch next year.”

Corn Continued from page 1 Overall, total plantings of the major crops in the U.S. this year were projected to increase 8.6 million acres. Cotton acres were projected to rise 15 percent, which was well below trade expectations. There was some pre-report speculation that cotton would take more acres away from corn and beans, but cotton acres were projected to be about 600,000 below expectations. “It (the lower cotton projection) probably reflects the cost it takes to produce cotton and the specialty equipment needed,” Scoville said. “You can’t just turn it on for a year or two.”

Page 7 Monday, April 4, 2011 FarmWeek

TRADE

Nelson: Brazil both ag competitor, ag partner BY MICHAEL DANNA

Brazil is the No. 1 U.S. competitor for global farm exports, but the president of the Illinois Farm Bureau said last week the country also can be a partner to North American farmers. Philip Nelson, a LaSalle County grain and livestock producer, was part of a 10-day

Miguel Farm, about 125 miles east of Brazilâ&#x20AC;&#x2122;s capital of Brasilia.â&#x20AC;&#x153;No matter what you grow or where you grow it, there always seems to be someone who doesnâ&#x20AC;&#x2122;t like what weâ&#x20AC;&#x2122;re doing. â&#x20AC;&#x153;Building partnerships with farmers here in South America gives us all a sense that weâ&#x20AC;&#x2122;ve got a stake in feeding the world.â&#x20AC;?

â&#x20AC;&#x2DC;Building partnerships with farmers here in South America gives us all a sense that weâ&#x20AC;&#x2122;ve got a stake in feeding the world.â&#x20AC;&#x2122; â&#x20AC;&#x201D; Philip Nelson President, Illinois Farm Bureau

â&#x20AC;&#x153;Farmer-to-Farmerâ&#x20AC;? trade mission sponsored by the American Farm Bureau Federation. The tour, which included stops in Brazil, Colombia, and Panama, was designed to let farmers see first-hand how their competitors do business and to find ways to improve U.S. trade agreements. â&#x20AC;&#x153;With farmers around the world facing greater challenges, we as producers canâ&#x20AC;&#x2122;t afford to alienate anyone,â&#x20AC;? Nelson said from the Sao

Sao Miguel Farm has about 8,000 hectares (about 20,000 acres) in production, growing mostly corn and soybeans. This year, the operation also will grow cotton and a small amount of dry beans. While Nelson admitted Brazil is an agronomic powerhouse, the country is not without its challenges. During discussions with Tyler Sorenson, general manager of Sao Miguel, Nelson said Brazil still faces such issues as poor roads and heavy government regulation.

â&#x20AC;&#x153;As we saw driving here, the roads are in terrible shape,â&#x20AC;? he said. â&#x20AC;&#x153;When you think about the statistic that only 14 percent of Brazil has paved roads, you see they have a long way to go. But Brazil is making that investment, not only in roads, but also in waterways and other infrastructure improvements. â&#x20AC;&#x153;Brazil understands the need to get their commodities to market more timely and efficiently,â&#x20AC;? said Nelson. The Sao Miguel farming operation encompasses much more cropland than the 20,000 acres in production. However, the government of Brazil has mandated that 20 percent of the total farmland of Sao Miguel be set aside for environmental reasons. That means nothing can be grown on or harvested from that land. â&#x20AC;&#x153;And we pay taxes on that land,â&#x20AC;? said Sorenson. But farmland values in Brazil are cheap compared to those in Illinois. While Illinois growers could pay between $8,000 and $10,000 an acre for new farmland, Sorenson said land in Brazil is selling for about half that. â&#x20AC;&#x153;Right now, farmland is going for between $3,500 and $4,000 an acre,â&#x20AC;? spurred by higher commodity prices.

Illinois equine board awards $84,000 in grants The Illinois Equine Industry Research and Promotion Board recently awarded more than $84,000 in grants, according to Karen Freese, board chairman. Grants were awarded for 10 projects across the state. The money comes from the Illinois equine checkoff program of a nickel per 50-pound bag of horse feed sold at retail. Recipients were: Sheryl King, director of Southern Illinois Universityâ&#x20AC;&#x2122;s equine science program, who received $7,800 to start HORSE SENSE, an educational outreach program for novice horsemen across the state. The Decatur Park District received $10,450 to improve the districtâ&#x20AC;&#x2122;s Big Creek equestrian facility and start renovations of a show barn. BraveHearts Therapeutic Riding and Educational Center in Harvard received $6,500 for materials that volunteers will use to build a perimeter fence. Luck-N-Buck Saddle Club, Hillsboro, received $7,000 toward materials allowing volunteers to rebuild the clubâ&#x20AC;&#x2122;s arena. Massac County Youth Fair Board, Metropolis, was granted $6,500 for improvements to the Youth Fairgrounds, including round pens and lighting. The facility also serves 16 surrounding counties. New Kingdom Trailriders, Moline, received $4,200 to buy harness and related

equipment for expansion of its therapeutic riding program. Dr. Samuel Black, head of the University of Massachusettsâ&#x20AC;&#x2122; Veterinary and Animal Science departments, in conjunction with the Morris Animal Foundation, was awarded $5,000 for research to identify the factors that lead to laminitis. East Fork Arena and Trails, Olney, received $10,000 to continue work on arena lighting and other improvements to a 40-acre site designated by the City of Olney for development of a horse arena, trails, and camp site. The Pike County Fair Board Horse Committee received $6,600 to buy materials to build an announcer stand and storage facility. Trailside Equestrian Center, operated by the Rockford Park District, received $20,000 for improvements to facilities and pastures at its Lockwood Park equestrian program. Any group, individual, company, or institution may apply for grant funds. Preference is given to projects benefiting the largest number of people and horses. More information is available at {www.HorsemensCouncil.org) or by writing the Illinois Equine Board, 3085 Stevenson Drive, Suite 200, Springfield, Ill., 62703. The telephone number is 217-529-6503.

Illinois Farm Bureau President Philip Nelson, left, looks at soybeans with Sao Miguel Farm manager Tyler Sorenson as a combine rolls behind them on the farm 125 miles east of Brasilia. Nelson and four other state Farm Bureau presidents are touring Brazil, Colombia, and Panama as part of the American Farm Bureau Federationâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Farmer-to-Farmerâ&#x20AC;? trade mission ending this week. (Photo by Johnna Miller, American Farm Bureau Federation)

The Sao Miguel Farm has had to make infrastructure investments most Illinois farmers take for granted. For example, Sao Miguel was responsible for putting up miles of its own power lines and must maintain the power poles and electrical transformer systems. The cost ran into the hundreds of thousands of dollars and had to meet all of Brazilâ&#x20AC;&#x2122;s

standards for electrical safety and integrity. â&#x20AC;&#x153;When you think of those types of requirements and investments, you realize that Brazilian farmers have challenges just like us,â&#x20AC;? Nelson said. Michael Danna is the director of public relations for the Louisiana Farm Bureau Federation and host of â&#x20AC;&#x153;This Week in Louisiana Agriculture.â&#x20AC;&#x153;

Landowners may qualify for buffer grants Public or private landowners who want to plant trees, grasses, and shrubs along a stream, river, or livestock facility may qualify for a grant and assistance through the Trees Forever Illinois Buffer Partnership program. For more information or to see if you qualify, please contact Debbie Fluegel with Trees Forever at 309-925-9925 or e-mail her at dfluegel@treesforever.org. For information about the Illinois Buffer Partnership, go to {www.treesforever.org/Content/AffiliateResources/Programs/Illinois-Buffer-Partnership.aspx}.

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FarmWeek Page 8 Monday, April 4, 2011

Page 9 Monday, April 4 , 2011 FarmWeek

GROWMARK

GROWMARK focuses on ‘efficient’ market development BY DANIEL GRANT FarmWeek

GROWMARK has been active in recent years growing its business through everything from acquisitions, joint ventures, and partnerships to mergers. And the strategy not only has paid off for the regional cooperative, which posted annual sales of $6.1 billion in fiscal year 20092010, but it also has improved the delivery of products and services to customers. “Members (cooperatives) continue to consolidate, but we still cover the same geography we did 20 or 30 years ago, and we’ve eliminated expenses and combined efficiencies,” said Shelly Kruse, GROWMARK vice president of Midwest retail and acquisitions. She spoke during the recent GROWMARK media day in Illinois.

Illinois Farm Bureau members in the 1920s invested money to form local cooperatives to ensure a reliable supply of farm inputs and to maintain ownership and control of their business. In 1927, nine local cooperatives formed Illinois Farm Supply Co., GROWMARK’s first predecessor company. The number of members in the system at one point peaked at about 150 in the core geography (Illinois, Iowa, and Wisconsin). However, consolidation in the system cut the number of members to 27 in Illinois, three in Iowa, and zero in Wisconsin. “It was a bit of culture shock even though (the consolidation) was within the same system,” Kruse noted. “But it helped build a strong foundation.” Members and those who

Shelly Kruse

consolidated in the system now have access to such GROWMARK resources as lenders, human resources, and logistics. GROWMARK’s sales record tells the tale. In the past decade, sales have increased from less than $1

billion to nearly $6.5 billion. “Our six best years (in the cooperative’s 83-year history) have been in the last six years,” Kruse said. A key area of expansion in recent years for GROWMARK has been in the fertilizer and agronomy businesses.

IAA Foundation offering new 5K race to celebrate education The IAA Foundation will sponsor the first annual 5K “Grow & Go” race starting at 9 a.m. May 14 on the grounds of the corporate headquarters of Illinois Farm Bureau, Country Financial, and GROWMARK in Bloomington. The early deadline is May 2. The course will have a cross-country feel with grass, pavement, and rolling terrain. Finishing times and results will be provided by the Lake Run Club of Bloomington-Normal. Runners ages 10 and younger may participate in a Cock-a-Doodle Dash in which each runner will win an award. Runners and walkers will learn more about agriculture while providing proceeds for Illinois Agriculture in the

Classroom (IAITC), which offers free educational resources to teachers. After the event, participants will be invited to an indoor open house featuring a hot breakfast and family fun activities. Special interactive learning stations and activities for children will be provided by IAITC staff and volunteers. The open house will include an appearance by Corny, the mascot for the Normal CornBelters minor league baseball team, free photographs, awards, and a silent auction. The early registration fee is $20, but will increase to $25 after May 2. The Cock-a-Doodle Dash entry fee is $5 for youth. Registered race partici-

pants will receive a T-shirt, water breaks, professional timing, and a hot breakfast. Individuals interested in attending the open house and breakfast only may buy tickets for $7. “We encourage runners and families to join us for a funfilled morning of activity in

celebration of farming and in support of education,” said Susan Moore, IAA Foundation director. Complete details and online registration are available on the IAA Foundation website at {www.iaafoundation.org} or by calling the Foundation office at 309-557-2230.

GROWMARK earlier this year acquired four fertilizer terminals, including three in Illinois (Albany, Mapleton, and Seneca) that gave the cooperative another 226,000 tons of dry and liquid plant food storage. GROWMARK and Bunge North America this year also created B-G Fertilizer LLC to acquire a liquid and dry fertilizer storage terminal located in Cincinnati, Ohio. “We will remain proactive in pursuing acquisitions and joint ventures that support our growth and service goals,” Rod Wells, GROWMARK director of agronomy sales and operations, said at the time of the acquisitions. GROWMARK recently highlighted its fuel and fertilizer businesses during media day with tours of two of its Illinois facilities. The volume of annual sales in GROWMARK’s energy division exceeds 1.4 billion gallons of gasoline (GROWMARK also is the sixthlargest marketer of propane in the U.S.) while the agronomy division sells more than 2.5 million tons of plant food and nearly $350 million of crop protection products each year.

FarmWeek Page 10 Monday, April 4, 2011

RESEARCH

Take precautions to avoid anhydrous accidents The Illinois Department of Agriculture (IDOA) and the Illinois Fertilizer and Chemical Association (IFCA) are recommending farmers review safety and handling procedures before applying anhydrous ammonia this spring. Last year, the number of accidental releases of anhydrous increased to 50, twice the annual average of the previous five years, according to IDOA, which investigates such incidents. “If greater attention had been paid to the proper operation of equipment, many of these accidents may have been prevented,” said Jim Larkin, IDOA bureau chief of ag products inspection. Larkin attributed improper management of ammonia hoses as the leading cause of accidents. To help prevent accidents, IDOA advises the following: • Inspect anhydrous ammonia hoses prior to each use. Look for cracks, cuts, rubs, and soft spots, as well as “slippage” near the couplers. Always

purge anhydrous ammonia from the hose or system prior to inspection. • Perform regularly scheduled maintenance on the toolbar quick-coupler, and visually inspect it before each use. Check to ensure hoses are the correct length for the type of nurse tank being used. • When applying anhydrous, always use the safety chains provided on the nurse tank along with the attached hitch pin and safety clip to prevent hoses from stretching and breaking. • Before pulling a nurse tank on a roadway, purge all anhydrous ammonia from the toolbar and hoses and secure the end valves of the hoses to the parking plugs on the toolbar. Attach the safety chains, hitch pin, and safety clip. Drive at 25 mph or slower speeds. • If an accident occurs, the applicator who was in control of the ammonia at the time immediately must report the incident to regulatory agencies, within 15 minutes if pos-

sible. Farmers are included in the reporting requirement. “We have definitely seen an increase in enforcement of the reporting regulations — from both U.S. EPA (Environmental Protection Agency) and IEPA (Illinois Environmental Protection Agency),” said Jean Payne, IFCA president. Payne added there is no penalty for reporting an ammonia release, but there is a penalty for not reporting one. A wallet card that includes the phone numbers of the agencies that must be notified about releases is available by calling IFCA at 309-8272774. IDOA and IFCA jointly produced an ammonia safety training video designed specifically for farmers. It highlights the most common safety errors. The video may be viewed online at {www.ifca.com} or {www.agr.state.il.us} or a copy may be obtained by contacting IFCA.

CELEBRATING MONMOUTH CENTER

University of Illinois Interim Vice President and Chancellor Robert Easter addresses a celebration last week at the Northwestern Illinois Agricultural Research and Demonstration Center, Monmouth. Grassroot supporters bought 80 acres, and the university bought another 80, doubling the center’s research acres. Another new addition will be a new Extension agronomist position at the farm. (Photo by Chris Magnuson)

39th WIU bull sale sets records The 39th annual Western Illinois University (WIU) Performance Bull Sale set records for sale average and gross sales, according to Ken Nimrick, professor at WIU’s School of Agriculture. The sale, in the WIU Livestock Center, attracted 37 buyers from Illinois, Iowa, and Missouri who took home 60 high-performance bulls at a record average price of $2,484, Nimrick noted. “The top 20 bulls averaged $3,460,” Nimrick said. “Repeat buyers accounted for 73 percent of the buyers, gross dollars, and bulls selling, which attests to the success cow men and women are

achieving with bulls out of this sale.” Nimrick said the top-selling bull brought $4,750. More detailed results are available at {www.wiu.edu/bulltest}. Click on “Sale Results” and/or “Detailed Sale Report.“ “Breeders are encouraged to enter their top bull prospects in the next test, as we hope to continue building upon the reputation of the WIU tested bull sale as a source of top-quality, performance-tested genetics,” Nimrick added. For information about entering a bull, contact the WIU School of Agriculture at 309298-1080.

Funds available for organic certification Growers and handlers of organic agricultural products may apply on a first-come, firstserved basis for cost-share funds to recover part of the expense of USDA organic certification. The Illinois Department of Agriculture (IDOA) has received $60,000 to reimburse producers and handlers who either obtain a new certification or renew one within the federal fiscal year that ends Sept. 30. The reimbursement will cover 75 percent of certification up to a maximum $750. “These funds will help growers who want to enter the rapidly-growing market for organic products,” said Illinois Agriculture Director Tom Jennings. “However, they’re avail-

able on a first-come, firstserved basis, so I encourage those interested to contact us as soon as possible.” The money will be distributed to eligible recipients in the order their applications are received. Producers may apply for reimbursement even if they have received previous payments through the program; however, each farm is limited to one reimbursement per year. The funding comes from the USDA’s National Organic Certification Cost-Share Program. Applications will be accepted through Nov. 1. For an application form, call IDOA‘s Bureau of Marketing and Promotion at 217-5249129 or go online to {www.agr.state.il.us}.

Page 11 Monday, April 4, 2011 FarmWeek

FarmWeek Page 12 Monday, April 4, 2011

FB IN ACTION

Membership in Illinois Farm Bureau Young Leaders grows Logan County launches revitalized committee BY DANIEL GRANT FarmWeek

Membership in Illinois Farm Bureau Young Leaders is on a major upswing despite the fact that fewer young people are involved in agriculture. The average age of the Illinois farmer increased from 53.2 years in 1997 to 56.2 years in 2007, according to the Ag Census. However, membership in the Young Leader program (formerly known as Young Farmers), which is for those 35 years of age and younger, already is up by about 150 for the current membership year. “We’re seeing a lot more interest in Young Leaders,” said Jennifer Smith, IFB Young Leader manager. “It’s very exciting.” Smith speculated more young farmers are becoming Young Leaders to network with others in their age range, prepare for future leadership positions, and to

have a voice at the state and national level at a time when the potential for increased regulations is one of the top threats to current ag production practices. Smith recently traveled to Hancock, McHenry, Mercer, Rock Island, and Vermilion counties to help improve the structure of local Young Leader programs and to help recruit new members in those counties. One of the most recent developments in the Young Leader program occurred in Logan County. Dave Opperman, Logan County Farm Bureau board member and a former YL State Committee member, spearheaded an effort to reestablish and revitalize the Young Leader program in his county. “We haven’t had an active committee in over 10 years,” Opperman said. “So a number of us pulled our heads together, got a list of names, and had a kickoff meeting.” That meeting attracted

Allen Sasse, chairman of the newly reformed Young Leaders Committee in Logan County, teaches fourthgrade students about the operation of a planter and instructs them on farm safety during the ninth annual Logan County Ag Education Day last week. This was the first year the new Logan County Young Leaders Committee played a major role in the event. (Photo by Daniel Grant)

about 70 potential members, according to Opperman. One of the local farmers

who attended the meeting was Allen Sasse. “We had an active committee that did a lot for the community,” said Sasse, who recently was elected chairman of the Logan County YL committee. “I thought it was important (to re-establish the county YL committee) and to get young people involved in agriculture.” The YL committee already has been active: It recently co-hosted the ninth annual Logan County Ag Education Day in Lincoln. Young Leaders, farmers, teachers, and others at the event taught about 240 fourth-grade students from 12 schools in Logan County about the ag industry through

NOTICE OF ANNUAL MEETING COUNTRY MUTUAL INSURANCE COMPANY TO ALL POLICYHOLDERS AND MEMBERS: Notice is hereby given that the annual meeting of the members of Country Mutual Insurance Company will be held in the Illinois Agricultural Association Building, 1701 Towanda Avenue, Bloomington, Illinois on Wednesday, April 20, 2011 at 1:00 p.m., to receive, consider, and if approved, confirm and ratify the reports of the officers and of the Board of Directors of the Company for the year ended December 31, 2010 and to elect 20 members of the Board of Directors to serve for a term of one year, and for the transaction of such other business as may properly come before the meeting. Elaine Thacker Kathy Smith Whitman Assistant Secretaries

various hands-on stations. “I didn’t grow up on a farm,” said Brianna Eeten, who married a farmer, now lives on a farm, and recently was elected secretary of the Logan County Young Leader Committee. “But we have two daughters and thought this would be one way to help teach them about ag.” IFB President Philip Nelson stressed the need for more young leaders in agriculture during his keynote address at the recent YL State Conference in Springfield. “Today in production agriculture we need leadership more than we ever needed it in the past, given the issues we are facing,” he said. More information about Young Leaders, including YouTube video clips of members, is available at {www.ilfb.org/youngleaders}. Young Leaders also is on Facebook.

Page 13 Monday, April 4, 2011 FarmWeek

FROM THE COUNTIES

ROW N — An Ag Safety Day will be from 9 a.m. to 2:30 p.m. Friday, May 6, at the Mt. Sterling Fairgrounds. Rain date will be May 9. There will be animal exhibits and ag displays. Contact Nicki Geisler, Brown County Extension, at 217-430-9343 or e-mail her at ngeisler@illinois.edu for more information. L I N TO N — Farm Bureau will sponsor a market outlook meeting at 7 p.m. Tuesday at the Knights of Columbus Hall, Breese. A ribeye steak dinner will be served. Cost is $5. Dale Durchholz, AgriVisor analyst, will be the speaker. Nancy Erickson, Illinois Farm Bureau director of natural and environmental resources, will discuss the rules on spill prevention, control, and countermeasures. Call the Farm Bureau office at 526-7235 for reservations or more information. E E — The Lee and Whiteside County Farm Bureaus will sponsor a bus trip Wednesday, July 20, to see the Chicago Cubs vs. Philadelphia Phillies at Wrigley Field. Game time is 1:20 p.m. Cost is $60 for members and $65 for nonmembers. Registration and money are due Wednesday, June 15, to the Farm Bureau office. Reservations will be on a first-come, first-served basis. Call the Farm Bureau office at 815-857-3531 for more information. A R I O N — Farm Bureau will sponsor a market outlook meeting at 6:30 p.m. Thursday at the Farm Bureau office. Kim Holsapple, Effingham Clay Service Co., will be the

speaker. Bill Fulton, Salem Fire Department, will discuss grain bin entrapment and rescue. Tickets are $5. Call the Farm Bureau office at 548-2100 for reservations or more information. E O R I A — A stroke detection plus health screening will be Thursday, May 5, at the Farm Bureau auditorium. Members can save $35 on all four screenings. Call 877-732-8258 for reservations or more information. TEPHENSON — Farm Bureau will sponsor a Chicago getaway trip Saturday, May 14, with drop-off and pick-up at Navy Pier, downtown, and the museum complex. Call the Farm Bureau office at 815-232-3186 or visit the website {www.stephensoncfb.org} for more information. • Scholarship applications from the Stephenson County Farm Bureau Foundation are available at the website {www.stephensoncfb.org} or at the Farm Bureau office. Deadline for the high school senior applications is April 30. Collegelevel applications are due June 30. Applications are available at the Farm Bureau office or at the website {www.stephensoncfb.org}. • The Central Illinois Heritage and Agriculture Tour will be June 27-29. Stops will include Springfield, Arcola, and Peoria. Call the Farm Bureau office at 815-232-3186 or visit the website {www.stephensoncfb.org} for more information. • Tickets for the bus trip to see the Chicago Cubs vs. Milwaukee Brewers game

Auction Calendar

and Cal Kaufman, Auctioneers. www.niteequip.com Thurs., Apr. 21. 7 p.m. 60 Ac. Land Auction Jasper Co. Don and Gloria E Meyer, DIETERICH, IL. Auctions/Realty By Schackmann Inc. www.schackmann.com Sat., Apr. 23. 10 a.m. Land Auction Pulaski Co. Buy a Farm Land and Auction Co. buyafarm.com Sat., Apr. 23. Consignment Auction. Black Hawk FFA Alumni, SOUTH WAYNE, WI. Powers Auction Service. www.powersauctions.com Tues., Apr. 26. 10 a.m. 85 Ac. Farmland Auction. Lorene Gerdes Estate, CISSNA PARK, IL. Bill Kruse, Auctioneer. Wed, Apr. 27. 10 a.m. 234.04 Ac. Ford Co. Gibson Hospital Foundation, GIBSON CITY, IL. Bill Kruse, Auctioneer. Sun., May 1. Consignment Auction. Orangeville Fireman’s, ORANGEVILLE, IL. Powers Auction Service. www.powersauctions.com Sat., May 7 . 9 a.m. Congerville Lawn and Garden, Farm and Construction Consignment Auction. CONGERVILLE, IL. Kaufman Auction Service. www.calkaufmanauction.com Sat., May 14. Lawn and Garden Consignment Auction. Riesterer and Schnell, HORTONVILLE, WI. Powers Auction Service. www.powestauctions.com.

Fri., Apr. 8. 10 a.m. Farm machinery. Thomas and Rosemary Metcalfe, CHESTERFIELD, IL. Mike Crabtree, Auctioneer. www.mikecrabtreeauctions.com Sat., Apr. 9. 10 a.m. Annual Spring Consignment Auction. CONGERVILLE, IL. www.reellivestock.blogspot.com Sat., Apr. 9. 8:30 a.m. Vacations, Sports Tickets and much more. Salem Children’s Home, FLANAGAN, IL. www.salemranch.com Sat., Apr. 9 1 p.m. Horse Auction. Salem Children’s Home, FLANAGAN, IL. www.salemranch.com Sat., Apr. 9. 10 a.m. Farm machinery and miscellaneous. Dorothy J. Edwards Estate, VERGENNES, IL. Mark Krausz Auction Service. Wed., Apr. 13. 10 a.m. Real Estate Auction. Richard Eckberg Sr., PRINCETON, IL. Aumann Auctions. www.aumannauctions.com Sat., Apr. 16. 9 a.m. Spring Consignment Auction. NITE Eq., PECATONICA, IL. www.niteequip.com Sat., Apr. 16. Consignment Auction. Bobcat of Madison, MADISON, WI. Powers Auction Service. www.powersauctions.com Sat., Apr. 16. 9 a.m. Consignment Auction. Nite Eq., PECATONICA, IL. Jim Sacia, Dan Powers, Lenny Bryson

July 26 in Milwaukee are available. Cost for the 7:10 p.m. game is $60 for members and $65 for non-members and includes bus fare. Call the Farm Bureau office at 815-232-3186 for reservations or more information. ERMILION — Farm Bureau will have a display Thursday at the Danville Area Community College (DACC) Ag Day in the Mary Miller Gym. A 50-cent lunch will be served from 11 a.m. to 12:30 p.m. Other activities featured will be a farm animal exhibit, pedal tractor ride, and a remodeled DACC greenhouse. • Vermilion County Farm Bureau Foundation is accepting applications for the Andrews-Brummet Scholarship until Friday. The scholarship is available to any Vermilion County high school senior who will attend Danville Area Community College next fall. Applications are available at the Farm Bureau office or on the website {www.vcfb.info}.

ILL — The Women’s Committee and Phone Cards for Troops program, in cooperation with the Will County Extension office Master Gardeners’ program, will sponsor a spring flower and plant sale fundraiser. Orders for annuals will be taken through April 25. Order forms are available at the Farm Bureau office. Delivery to the Farm Bureau office will be either May 2 or

3. Profits will be used toward purchasing international phone cards to send to troops in boxes mailed out by Operation Care Package. Call the Farm Bureau office for more information. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

FarmWeek Page 14 Monday, April 4, 2011

PROFITABILITY

Manage propane price uncertainty by contracting now BY RANDY MILLER

Warmer temperatures are encouraging us to spend time outdoors. Unless you filled your grill tank recently, you probably put behind thoughts concerning Randy Miller propane markets. However, it’s still important to look at what might come our way until the upcoming heating season. No two years are alike. Last fall’s grain drying saw little demand, while 2009 was the biggest demand year on record. Even the home heating season was somewhat lackluster compared to the previous two. So, what can we look to drive propane price in the future? Crude oil: Propane prices follow crude prices. The turmoil in the Middle East continues to concern us as to just how high crude can go. Unrest has spread from Egypt, and even Saudi Arabia may not be exempt. If crude oil production is affected elsewhere, such as in Libya, then markets can go much higher. Hopefully, some stability will return soon. Inventories/demand: Even though U.S. demand was below that of previous win-

ters, worldwide demand for propane continues to grow. The Gulf Coast, while known for crude oil imports, is now a propane export terminal. Petrochem demand for propane, which includes chemical companies and the plastics industry, continues to grow. Therefore, inventories coming out of season are actually below five-year average levels. At mid-March, Gulf Coast stocks are nearly 10 percent below a year ago, with Con-

Fuel prices last week continued to reach new highs for the year and showed no signs of slowing down.

‘Most Americans are feeling sticker shock caused by high gasoline prices. ...’ — Don Shawcroft

Colorado Farm Bureau

The national average price of regular unleaded gasoline the first of the week was $3.59 per gallon, a new high so far this year, according to the Energy Information Administration (EIA). And the average price likely

Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts

Range Per Head Weighted Ave. Price $33.74-49.71 $41.84 $78.39-79.00 $78.73 n/a n/a This Week Last Week 34,532 23,943 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $88.04 $83.21 $65.15 $61.58

Change 4.83 3.57

USDA five-state area slaughter cattle price Steers Heifers

This week 122.36 122.38

being fractionated from natural gas than ever before as prices of natural gas compared to propane encourage propane production. Propane inventories likely will build rapidly throughout the summer. Even though inventories are below normal for this time of year, we already had a week of inventory builds in March. This leaves lots of uncertainty from very volatile crude oil prices. Propane should be well supplied going into

fall/winter but will rise and fall with the crude market. Consider forward contracting your propane needs early as a way to manage uncertainty in the marketplace. Your local FS member cooperative will be happy to explain options available to take the worry out of your propane needs. Randy Miller is GROWMARK’s director of propane operations. His e-mail address is rmiller@growmark.com.

Fuel prices continue to surge, close in on $4 per gallon

M A R K E T FA C T S

Carcass Live

way, or midcontinent stocks off nearly 5 percent from the five-year average. The National Weather Service predicts cooler temperatures compared to last year, but precipitation should be normal. If the crop gets in late, expectations for grain drying will be high. Production: Look for increased propane production this year from shale plays (areas in which exploration is targeted) continuing to expand. More propane is

(Thursday’s price) Prv. week Change 112.00 10.36 114.00 8.38

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 131.25 3.18

This week 134.13

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 130-170 lbs. for 157201 $/cwt.(wtd ave. 183.82); dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 3-24-11 29.3 29.5 42.3 3-17-11 30.6 26.0 32.2 Last year 31.3 14.9 41.0 Season total 1273.7 967.5 962.2 Previous season total 1244.1 691.9 979.4 USDA projected total 1590 1300 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

could set a new high again this week in EIA’s weekly update. The AAA Fuel Gauge report on Friday showed the U.S. average prices crept up to $3.61 per gallon for regular gasoline, up 81 cents from last year, and $3.96 per gallon for diesel fuel, up $1.02 from last year. In Illinois, the average fuel prices on Friday were $3.75 per gallon for regular gasoline and $3.96 for diesel. The run-up in prices is expected to hit farmers, the trucking industry, and other heavy users of fuel hard. Government figures show farmers this spring will pay almost 85 percent more than they paid in 2000 just to plant their crops. Testifying before the U.S. House Natural Resources Committee, Colorado Farm Bureau President Don Shawcroft said America’s farmers and ranchers need reliable and reasonably priced fuels in order to maintain their ability to feed, clothe, and fuel the world. Farmers and ranchers, he explained, cannot simply pass higher expenses along to their customers. “Most Americans are feeling sticker shock caused by high gasoline prices when they fill their automobile’s tank,” Shawcroft said. “But there is no term in the English language to accurately describe what farmers and ranchers feel everytime they put diesel in the tanks of their farm equipment.”

Class III milk price rises again The Class III price for milk adjusted to 3.5 percent butterfat for the month of March was $19.40 per hundredweight. This is $2.40 higher than the previous month and represents a gain of nearly $6 in just two months. These dramatically higher prices are the result of slightly tighter supplies in the milk market. As cull cow prices remain at record high levels, dairy farmers have been moving some marginal cows to market, leading to reduced production. There are ample supplies of heifers that are nearly ready to milk, so many producers are looking at this as an opportunity to upgrade their herds while taking advantage of the higher prices in the beef sector.

FarmWeek Page 15 Monday, April 4, 2011

PROFITABILITY Corn Strategy

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

Some surprises in planting data As you know by now, the surprise in the March 31 USDA reports was the March 1 corn stocks number. The acreage data were mostly ignored, but there were some important insights that can be drawn from that report. Using the USDA numbers from the March 31 report, total plantings of all crops are slated to rise only 6.1 million acres this year. When adjusted for an expected 2.3-million-acre increase in double-crop soybean plantings, total planted area only increases 3.8 million acres. The two biggest surprises to the trade may have been the 900,000-acre decline in hay acreage, and the 1.6-million-acre increase in cotton plantings. The decline in hay acreage may be tied to relative profitability of other crops and ongoing reductions in our cow herd. This tends to be supported by stories we’ve heard through the winter about pastures being taken out, too. The smaller-than-expected

Basis charts

increase in cotton plantings may be tied to the decline in gin capacity across the South and the cost some producers would have in order to purchase a cotton picker again; maybe to own it only one or two years. Meanwhile, profit opportunities still are good for competing crops. This estimate of total plantings is still no larger than 2008. And when you add the land devoted to the Conservation Reserve Program (CRP) program, the total acreage is 2.3 million less than it was in 2008. We know total plantings of all crops dropped 8.3 million in primary corn/soybean areas since 2008. Since then, CRP enrollments have dropped 3.5 million acres. And since the 2007 peak, they’ve declined 5.6 million. There is a tendency for corn plantings to decline from the March USDA estimate. But the new-found vigor in the corn market easily could cause corn plantings to rise, unless weather causes plantings to be unusually slow as was the case in 2008. Soybean plantings have a tendency to increase from the March forecast, but they, too, could be tied to the relative speed of planting and the price relationship with corn. In 2008, final plantings of the eight major crops plus hay were 1 million more than forecast in March. And that occurred during the worst planting year in modern history. Planting of all crops in corn-producing areas rose 4.2 million from 2007. These numbers argue there is more land yet available to plant. The unknowns are how the weather will impact the speed of planting, the willingness to plant the marginal acres, and the mix of the crops planted. AgriVisor endorses crop insurance by

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Cents per bu.

2010 crop: Last week’s surge confirms the mid-March low was the 40-week low. The May contract is poised to test its $7.44 contract high. If that’s overcome, look for a test of 2008’s $7.65 high. If you’re risk prone, you might wait to see if a new high comes, but it still looks wise to use rallies the next two to five weeks to wrap up sales. Hedge-to-arrive (HTA) contracts for summer delivery are still the best tool. 2011 crop: December futures reached a potential target at $6.38. Use this surge for catch-up sales. If December would move close to its next target at $6.65, plan to add another increment. HTA contracts are still the better marketing tool. Fundamentals: The March 1 corn stocks were a shock to the trade, coming in 200 million bushels below expectations. That further tightens up what already was a tight situation. Still, the price shift between wheat and corn, and large old-crop wheat supplies, could pull enough wheat into the feed bunk to ease the old-crop tightness. Weather and planting progress will start to become a major factor.

Soybean Strategy 2010 crop: Slowly, export demand is shifting to South America. Domestic processing remains subdued because of poor meal demand and poor processing margins. Without a significant weather problem, lower prices are ahead. Make catch-up sales any time May futures are above $13.75. 2011 crop: Plantings were close to expectations, but still not as high as the trade would like to see. However, soybean plantings have a tendency to end up larger than USDA projects in March. As with old-crop, business flowing the South America may tend to undermine newcrop demand and prices. Use rallies for catch-up sales. Plan to add another small increment in the next few weeks. Fundamentals: Increasingly, world soybean and product demand are shifting to the Southern Hemisphere. Domestic demand for soybean prod-

ucts is weak as well. The worry about securing adequate acreage is the most positive feature.

Wheat Strategy 2010 crop: It appears the mid-March low was a significant short-term bottom. Prices on the Chicago May contract now have potential to test $7.94 (the 100-day moving average). We would use current strength to wrap up sales, unless you want to carry inventories into the new-crop year because of the carry in futures. Even then, we’d be pricing any old-crop deliveries for a later delivery period. 2011 crop: Use rallies

above $8.10 on Chicago July 2011 futures for catch-up sales. Check the Hotline frequently, as we could recommend additional new-crop sales at any time. We still prefer HTA contracts. Fundamentals: The recent USDA report was negative with total wheat plantings pegged at 58.021 million acres, above trade expectations of 57.289 million. The 700,000-acre increase in spring plantings was not expected. March 1 wheat stocks, at 1.42 billion bushels, were larger than expected, too. Still, attention will remain focused on weather in the Southern Plains and other wheat areas.

FarmWeek Page 16 Monday, April 4, 2011

PERSPECTIVES

DAMAGING DOZEN

Storms that rank the worst of the worst in Illinois Hailstorms, tornadoes, hurricane-remnant rain storms –-Illinois has suffered its share of damaging storms between 1949 and 2008. Twelve of those storms inflicted the most damage over those 60 years. I assembled and analyzed storm loss data for Illinois between 1949 and 2008 in order to identify the most damaging storms. Since 1948, high-quality storm damage data have been collected in the U.S. by the property and crop insurance industries. Insurance experts have adjusted the losses in each year to make them comparable to current-year dollar values. My study of the 12 most damaging storms defined the types of storm-producing conditions, the magnitude of losses, and temporal STANLEY distribution during the 60-year periCHANGNON od. Those impacted by major storm disasters obviously include disaster victims, farmers, owners of damaged businesses, community leaders, public officials, and the insurance industry. Individuals, communities, and others should benefit from this information through improved designing and engineering of recovery and relief activities. Most of the losses from the top 12 storms were attributable to property damages. However, sizable crop losses — totaling $665 million — also occurred from seven storms, those in April 1964, August 1987, July 1993, May 1998, May 2003, August 2007, and September 2008. April 13-14, 2006, unleashed the state’s most damaging storm — the result of 23 hailstorms that brought large hail. A supercell storm spread hail along a path southeast from the Quad Cities, producing damage in Peoria, Bloomington, and Champaign. Losses included damages valued at $301 million to homes and personal property, $160 million to businesses, and $187 million to vehicles. The total damage was $648 million. The second-most damaging storm occurred when the remnants of Hurricane Ike crossed the state on Sept. 12-14, 2008. Across the northern half of the state, rainfall amounts ranged from 2.5 to 4 inches. The storms created several damaging flash floods, followed by flooding along the Illinois and Mississippi Rivers. Losses totaled $503 million. The third-most damaging storm came on May 5, 1950. Winds of 60 mph occurred across Central and Northern Illinois with gusts to 80 mph at several locations. Property was badly damaged; many trees and crops were blown down, and numerous

roofs removed. A bridge over the Illinois River was destroyed. Total losses were $441 million. Six different severe weather conditions caused the 12 major storms. Out of the 12 storms, three were due to a mixture of tornadoes, hail, and high winds. Two storms were caused only by hail, while two others were the result of high winds. Heavy rains and flooding caused two of the storms. Interestingly, only one storm was due to winter storm conditions. Which month led the way with the most damaging storms? April had that dubious honor with five of the most damaging storms. That was followed by May, which had three, and August with two. July and September each had a single storm on the most-damaging list. Over time, Illinois has seen a marked increase in storm frequency and increased amounts of storm loss, starting in 1989. The frequency of the 12 storms peaked with five between 1999 and 2008. Losses also showed a dramatic increase after 1989. Very large losses occurred in the latest decade, 1999-2008. Three of the storms occurred in the last three years of 2006, 2007, and 2008. What do we know about the state’s 12 most costly storms between 1949 and 2008? Much of the damage was done to property with crop losses accounting for 16 percent of the total loss of $4.148 billion. A wide variety of storm conditions caused the 12 events, but most happened mainly in the warm season. The temporal distribution of Source: Stanley Changnon the 12 storms revealed distinct upward time trends in both storm incidences and losses. Eight storms occurred in the 1989-2008 period with losses that totaled $2.98 billion — 72 percent of the 60-year total. The highest storm values came in the last 10 years, 1999-2008, an outcome that could reflect effects of global warming on the state’s climate. The ever-increasing losses also could be a result of the expanding societal vulnerability, including growth in population and wealth, plus expanding urban areas that allow more property damages to occur. Regardless, the recent increases suggest Illinois should be prepared for more costly storm losses in the future. Stanley Changnon is chief emeritus of the Illinois State Water Survey and a geography professor at the University of Illinois.

LETTERS TO THE EDITOR Says vote ‘no’ on sales tax hike Editor: On April 5, the citizens of several counties in Illinois will vote to increase the state sales tax, supposedly for schools in their counties. This is all because our good ol’ legislators in Springfield cannot, or will not, control their spending. That includes bloated salaries and bloated retirements. I recommend a “NO” vote! HERBERT WODTKE, Loogootee ****

Consider renting land to smaller-size farmer Editor: This is in response to a recent article on farm partnerships. I couldn’t agree more with the challenges facing farmers with fewer than 1,000 acres. My farm fits in this range. I also hold a full-time, off-farm job, as many farmers of this size do today. Most farms of this size are just as efficient as any big farm. I have found a farmer of this size can save a considerable amount on inputs and machinery by comparing prices and using the Internet. A partner could work in the right situation, except most farmers enjoy their independence. That independence is probably what keeps farmers like me still in the game. We have seen most of our neighbors disappear and replaced by much bigger farmers. The biggest problem facing farmers of this size is convincing someone to rent them additional farmland. I really don’t understand the resistance to helping a farmer of this size, as many do a excellent job farming. I know they don’t have a 36-row planter or a fleet of combines, however, most do have a good line of updated equipment. A couple of hundred acres could make a huge difference to a farmer this size. I really hope farmers

of this size can survive and prosper as I feel they are the real backbone of agriculture. All they really need is someone willing to give them a chance. If you are a landowner, why not consider renting to a smaller farmer? CARL TOOHILL, LeRoy ****

Enticing California dairies not good move Editor: I read that Illinois milk producers flew representatives to the recent World Ag Expo to tell producers there that Illinois was a good place to dairy. I would agree Illinois was a favorable place to dairy. Page 7 of the Feb. 10 issue of Hoard’s Dairyman shows for the latest month available — October 2010 — the mailbox price to Illinois dairymen was $19.35 per hundredweight. The mailbox price to California dairymen was $16.50 — a difference of $2.85. Persuading California to send dairy herds to Illinois would certainly pull our blend price down. Processors say we need more dairy infrastructure. The supply-side economist’s definition of infrastructure is an abundant source of low-cost raw material. Another argument is made that Illinois does not produce enough milk to feed its population, therefore, we need to make concessions to entice mega-producers. In the real world, that would not work out. St. Louis would have to do without its Illinois milk supply and the Chicago area could not access the nearby Wisconsin milk. Indiana made big concessions to attract megadairies. It used to be better than Illinois but not any more. On some things I think we have to take a stand. WILLIAM SCHRAGE, Greenville

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