MAny IllInoIS FArMerS h ave l owe r e d t h e i r c r o p y i e l d expectations as potential bushels evaporated due to a combination of heat and dryness. ............................7
In THe MIDST of a federal probe into a salmonella outbreak linked to ground turkey, an Illinois producer stresses his commitment to biosecurity. ..............8
MonSAnTo’S new eASy Harvest broccoli features a crown that extends above the leaf canopy and uniform crown maturity, making harvest easier. ...........................9
Monday, August 15, 2011
Two sections Volume 39, No. 33
FMCSA announces favorable ruling for farmers BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
The Federal Motor Carrier Safety Administration (FMCSA) last week announced it will not propose any new safety requirements or changes to rules governing transportation of ag products, farm equipment, or farm supplies to and from a farm. The decision means farmers who have crop share leases will no longer be considered “forhire carriers,” a designation that would otherwise have required them to get a commercial driver’s license. The agency also determined states have adopted “common sense enforcement practices” of safety regulations for farm implements of husbandry, and the federal government will not add more requirements. “Illinois Farm Bureau wishes to express its gratitude to FMCSA, to the Department of Transportation, and to Transportation Secretary Ray LaHood for successfully resolving what we believe was the improper interpretation of these regulations,” said IFB President Philip Nelson. “We appreciate the agency’s and the secretary’s attention to
this matter and their willingness to listen to our concerns,” Nelson added. FMCSA determined it would not make any changes regarding the issue of interstate vs. intrastate definitions that apply to hauling of farm products within a single state’s boundary. This means that farmers who operate a farm truck or truck/trailer combination with a gross vehicle rating of at least 10,001 pounds still must obtain and display a U.S. Department of Transportation (USDOT) number and register and pay a Unified Carrier Registration (UCR) fee, according to Kevin Rund, IFB senior director of local government. FMCSA officials credited the comments and information they received, especially those from farmers, with helping them understand the issues and implications of new interpretations. “The vast majority (of comments) called for us to preserve the guidance that leaves states to carry out the farm exceptions as they have for many
years,” said Anne Ferro, FMCSA administrator. “We want to make crystal clear that we are not imposing any new regulations.” During last week’s ag tour in Central Illinois (see story on
page 3), FMCSA officials discussed the next step for farmers who failed new-entrant safety audits before the Illinois Department of Transportation (IDOT) suspended those audits until a final decision was made
on the rule interpretation. An estimated 81 farmers were ruled to be out of compliance because of the new interpretation. Officials said they plan to review those audits and work with IDOT and the farmers.
Danforth farmer Bob Tammen, far right, describes his farm wagons to Anne Ferro, second from left, administrator of the Federal Motor Carrier Safety Administration (FMCSA), and Aliase Griffin, left, and Charles Medalen, both attorneys with FMCSA. Last week, Tammen’s farm was one of several stops for Ferro and her staff during a Central Illinois agriculture tour for the federal officials. The tour was hosted by Illinois Farm Bureau. (Photo by Kay Shipman)
Deficit commission named; ag impact uncertain BY MARTIN ROSS FarmWeek
A pair of developments captured headlines last week: Precipitous dips and spikes in the market in the wake of debt limit action and a U.S. credit downgrade, and a sobering forecast on 2011 corn production. That’s the climate of uncertainty farmers and lawmakers face as a 12-member “super Congress” deficit commission gears up to identify $1.5 trillion in 10year federal spending cuts. That’s on top of $1 trillion in initial cuts included as part of the agreement to raise the federal debt ceiling. The commission is to release its plan by Thanksgiving. Illinois Farm Bureau National Legislative Director Adam Nielsen stressed details of specific farm spending priorities should be left to House and Senate ag committees.
But IFB Vice President Rich Guebert Jr. said the commission will determine “how severe the cuts will be.” The IFB Farm Policy Task Force meets next week to review potential farm program/risk management options for 2012; Nielsen said concerns about nearterm grain supplies underline “the need to keep a safety net in place.” “We’re only one national drought away from a real widespread disaster,” he said. “This year, too, we’ve had lots of flooding events — it hasn’t been a smooth year for farmers in Illinois and across the country.” Senate Finance Committee Chairman Max Baucus (DMont.) and Sens. John Kerry (D-Mass.), Patty Murray (DWash.), Jon Kyl (R-Ariz.), Pat Toomey (R-Pa.) and Rob Portman (R-Ohio) will serve on the commission.
FarmWeek on the web: FarmWeekNow.com
House picks are Ways and Means Chairman Dave Camp (R-Mich.), top Budget Committee Democrat Chris Van Hollen (D-Md.), Fred Upton (RMich.), Jeb Hensarling (RTexas), James Clyburn (D-S.C.), and Xavier Becerra (D-Calif.). Nielsen was somewhat surprised by the absence of House Budget Committee Chairman Paul Ryan (R-Wis.), who issued last spring’s House budget plan, and Senate Majority Whip Dick Durbin, a Springfield Democrat who served on 2010’s White House deficit commission and as a member of the “Gang of Six” that worked recently to reach a debt limit/deficit deal. High-profile pick Kerry is “probably someone who doesn’t understand farm programs,” Nielsen said. But Baucus has backed several Farm Bureau taxtrade objectives, and Kyl was
instrumental in last-minute 2012 estate tax relief action. “We’ll find out how much work we have to do to make those commission members aware of what agriculture wants or needs,” Guebert said. “That will be a pretty tall task: Everybody’s going to be looking for those 12 committee members’ attention to support their programs.” All six commission Republicans have signed an Americans for Tax Reform pledge to oppose tax increases and support permanent estate tax repeal. While the debt limit deal included no provisions for raising taxes, the search for budget savings could endanger soon-to-expire tax measures such as the $5 million individual estate tax exemption. See Commission, page 2
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, August 15, 2011
GoverNmeNt
Quick takes KICKING OFF KIC CAMPAIGN — The Illinois agricultural industry and its partners will unveil a new crop nutrient management strategy at 10:30 a.m. Sept. 1 at the Farm Progress Show in Decatur. The Keep It for the Crop by 2025, known as KIC 2025, is a partnership among the state ag industry, state agencies, and other entities interested in nutrient management. The partners are committed to making measureable progress in the adoption of enhanced nutrient stewardship practices to address nutrient challenges. At the Illinois Corn Growers Association booth, leaders representing the Illinois Environmental Protection Agency, Illinois Farm Bureau, and other agriculture organizations will discuss KIC by 2025 and the goals to reduce nutrient losses from agriculture. FOOD, FUEL, AND FALLACIES? — A new study by Texas A&M University and Doane Advisory Services found income for beef and dairy farming operations has gone up since provisions of the Renewable Fuel Standard went into effect in 2007. Those findings disprove allegations that greater ethanol production had caused financial problems for livestock and dairy farmers by increasing feed prices, the National Corn Growers Association (NCGA) stated. “While it is easy to reiterate artificial arguments against the use of ethanol, we believe this study clearly illustrates the fallacies on which they are often based,” NCGA President Bart Schott said. ‘YEAR OF AGRICULTURE’ — Former University of Illinois Gardner Endowed Chair in Agricultural Policy Robert Thompson has joined the Johns Hopkins University Paul H. Nitze School of Advanced International Studies (SAIS) for the school’s global “Year of Agriculture” focus for 2011-2012. Thompson, who shares his thoughts on food security in an upcoming issue of FarmWeek, currently serves as a senior fellow of global ag development at the Chicago Council on Global Affairs. He will help SAIS develop an ag-focused curriculum to complement existing programs. “With agriculture now at the forefront of public and private sector agendas, SAIS aims to play a leading role in bringing this field into the main current of discussion in international relations policy,” SAIS Dean Jessica Einhorn said. “Dr. Thompson is peerless in his standing and suitability for taking agriculture beyond land grant universities.”
(ISSN0197-6680) Vol. 39 No. 33
August 15, 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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K a t h l e e n M e r r i g a n , U S D A’s deputy secretary of agriculture, discusses crop conditions with Illinois Farm Bureau members, left to right, Doug Anderson (Ford-Iroquois counties), Brian Niemann (Montgomery County), and Eric Rund (Champaign County) shortly after USDA issued its August crop production report Thursday. IFB Marketers to Washington participants attended USDA’s lockup and briefing of the highly anticipated report, which projected lower crop yields and record-high prices. (Photo by Daniel Grant)
USDA projects lower crop yields, record-high prices this season will average 170 bushels per acre for corn, up 13 bushels from a year ago, and USDA last week in its August crop produc- 48 bushels for soybeans, down 3.5 bushels tion report lowered its estimates for corn and from last year. soybean production. But those estimates could come down as And some analysts believe that trend may well based on challenging weather conditions continue throughout the harvest season as and a significant reduction in crop condition many farmers saw their crop yield potential ratings. shrivel up in July and so far in “An extended run of hot FarmWeekNow.com August due to high heat and nights in July affected yields spotty rainfall. For more details on USDA’s last year,” said Brad Schwab, USDA on Thursday, in its August crop production report, state statistician with the first estimate of the season National Agricultural Statistics go to FarmWeekNow.com. that takes 4,500 field samples Service Illinois field office. and 27,000 farmer surveys into “The potential is there for the account, lowered its estimate for the national pattern to repeat itself.” corn yield from 158.7 bushels per acre last The cuts in crop production estimates, month to a current estimate of 153 bushels which would tighten the stocks-to-use ratio to per acre. 5.4 percent for corn and 4.9 percent for The national soybean yield on Thursday beans, are expected to keep extreme pressure was estimated at 41.4 bushels per acre, down on prices. from last month’s estimate of 43.4 bushels per USDA in its world ag supply and demand acre. estimates released Thursday estimated recordTotal production was pegged at 12.9 billion high crop price averages for 2011/12 of $6.70 bushels for corn, which still would be the per bushel for corn, $13.50 for soybeans, and third-largest crop on record behind the crops $7.60 for wheat. of 2007 and 2009, and 3.06 billion bushels for “Prices should go up from here,” Manhart beans, which would be the sixth-largest crop said. on record. USDA surprised some analysts as it left its Pete Manhart, market analyst with Bates U.S. corn acreage estimate unchanged at 92.3 Commodities in Normal, believes the yield million acres, despite re-surveying some proestimates will continue to fall in subsequent ducers in July to account for spring floods. crop production reports. The estimate of harvested corn acres, though, “The heat in July, I think people don’t real- was reduced by 500,000 acres. ize how much that hurt,” Manhart told U.S. soybean acres last week were projected FarmWeek. “I think (the corn yield estimate) to total 73.8 million acres, down 250,000 153 will go lower as we go into harvest.” acres, and spring wheat acres were projected USDA last year, during a similar weather to total 12.7 million, down 950,000 acres. scenario, started with a corn yield estimate in The most significant change to acreage August of 165 bushels per acre that was lowprojections was for cotton, where planted ered to 162.5 in September, 155.8 in October, acreage was cut from 13.7 million to 9.67 miland 154.3 in November before the annual lion acres due to the drought in the southern yield wound up at 152.8 bushels per acre. U.S. and record-high abandonment of cotton USDA last week estimated crops in Illinois fields. BY DANIEL GRANT FarmWeek
Commission Continued from page 1 Despite successful efforts to head off U.S. debt default, Standard and Poor’s (S&P) downgraded the U.S.’ long-term credit rating from AAA to AA+. According to AgriVisor analyst Dale Durchholz, that’s the equivalent of moving from an “A” grade to an “A-minus” on the global report card. The other two major U.S. ratings agencies left the nation’s score intact, and beyond raising slightly “our cost of doing business,” Durchholz doesn’t
anticipate the S&P downgrade having “any lasting effect overall.” Nielsen was hopeful last week’s Wall Street whiplash was merely a temporary reaction to economic uncertainties and that “we don’t have wild swings in the stock market on a daily basis.” He applauded the Federal Reserve’s pledge last week to work to keep interest rates low through 2013. “That provides some certainty,” Nielsen said.
Page 3 Monday, August 15, 2011 FarmWeek
GOVERNMENT
Officials with the Federal Motor Carrier Safety Administration and Illinois Farm Bureau staff watch as the booms of a John Deere 4920 sprayer extend to 120 feet. Martin Brothers’
Roanoke implement dealership offered the federal officials a chance to see the spectrum of farm equipment and an opportunity to drive a tractor last week. (Photo by Kay Shipman)
Tour offers glimpse of modern agriculture Transportation officials get up close and personal briefing BY KAY SHIPMAN FarmWeek
Federal officials who regulate transportation safety last week traveled rural Illinois roads, gazed at massive farm machinery, and talked with a cross-section of farmers and agribusinessmen during a whirlwind tour of Central Illinois’ agriculture industry. Their field tour was sparked by controversial interpretations of federal transportation rules that impact farm trucking and a subsequent request for information by the Federal Motor Carrier Safety Administration (FMCSA). “What this trip has done so well — and I credit the Farm Bureau and it leaders for setting it up this way — is helped us connect the dots and understand the essentiality of the exceptions and exemptions in place for farmers,” Anne Ferro, FMCSA administrator, told FarmWeek as a bus pulled away from Paul Schuler’s Lexington farm. Ferro was accompanied by FMCSA’s Aliase Griffin, chief counsel; Charles Medalen, attorney; and Curtis Johnson, director of government affairs, all based in Washington, D.C.; and Steve Matiolli,
FMCSA’s Illinois division administrator, based in Springfield. From several host farms, the group traveled on township and county roads to grain elevators, the routes the farmers use to haul their crops to
FarmWeekNow.com For more information about the FMCSA officials tour of agriculture in Central Illinois go to FarmWeekNow.com.
market. The federal officials watched as truckloads of grain were weighed and unloaded at Evergreen FS Yuton Elevator, near Normal, and the McNabb Grain Co., McNabb. They scanned the bins and tanks at One Earth Energy’s ethanol plant in Gibson City and viewed the safety equipment along with anhydrous nurse tanks and fertilizer and agrichemical equipment at Brandt Consolidated’s fertilizer facility in Lexington. At Martin Brothers John Deere dealership in Roanoke, the officials ogled an array of farm machinery before climbing into a cab to drive a tractor.
“Come on, Anne, it’s your turn,” salesman Jerry Welch invited Ferro, who wore a large smile as she steered around the lot. Griffin whipped out a camera to record the experience on video before taking a spin herself. The farmer hosts answered many questions and explained
not only their farm lease arrangements, but also how they use transportation in their operations. “I thought it would be a great opportunity to show them what we actually do on a farm as far as transportation of our commodities from the farm to the market,” Schuler said.
“Seeing is believing,” Ferro added. After seeing the scale of farms and farm equipment, the FMSCA officials left Central Illinois with many photographs and videos of their farm experiences, new perspectives of agricultural technology, and toy replicas of the tractor they drove in Roanoke.
FMCSA officials share trip insights Anne Ferro, administrator of the Federal Motor Carrier Safety Administration (FMCSA) was accompanied last week by four staff members on an agriculture tour of Central Illinois. The officials shared their thoughts with FarmWeek. Ferro: “This (visit) has reinforced the value of communicating, the opportunities to communicate. This has helped us recognize there are some more things we need to talk about that can help the federal regulators work more effectively to get to that commonsense application of rules meant for overthe-road truckers and the safety of the public on highways ... and clarity for farmers so when they have a question about something, they can have it answered clearly and with a common-sense application.” Steve Matiolli, FMCSA’s Illinois division administrator: “We regulate hours of service, and it was interesting for me to see how compressed the time is (at harvest). The time they need to get the product out of the farm, into the trucks, and to the grain elevator. It’s much more of a restricted time frame than I had imagined. That
was very eye-opening for me.” Aliase Griffin, chief counsel: “I had no idea all the different kinds of equipment they (farmers) used ... the size of the combines. The technology is changing the nature of farming. It’s agriculture, but that is the stuff that is interesting for us to understand. The more you know, the more you understand. The more you understand, realistically, the better you can do your job.” Charles Medalen, attorney: “I was perhaps more ignorant of the types of land ownership here. I wonder if Illinois is different from the rest of the country. I thought share cropping had ended with the Civil War. Coming back to the Midwest was a good experience — out here everyone is calm and nonfrantic — I like the virtues we have here.” Curtis Johnson, director of government affairs: “This gives us an opportunity to leave D.C. and see what is happening in the real world, learning what everyone does, and we want to learn more what goes on in the fields. The technology advances are unparalleled. I was very impressed. You can’t fake being a farmer.” — Kay Shipman
FarmWeek Page 4 Monday, August 15, 2011
government
Scuse: Easier crop reporting procedures on the way BY DANIEL GRANT FarmWeek
Michael Scuse, acting undersecretary for USDA’s Farm and Foreign Ag Service, knows firsthand about farmers’ frustrations when it comes to crop reporting procedures. Scuse is a crop farmer from Delaware and many times has stood in line to report identical crop information to the Farm Service Agency (FSA) and the Risk Management Agency. “That to me seemed a bit ridiculous,” Scuse said last week during a meeting with participants of the Illinois Farm Bureau Marketers to Washington trip. “With the technology we have today, there’s no reason you (farmers) should have to give your crop report twice.” USDA, through its Acreage and Crop Reporting Streamlining Initiative, is in the process of eliminating the need for farmers to make extra trips to various government offices. In fact, Scuse believes farmers with Internet access within two or three years should be able to file their crop reports
from home. “We want to find a way to make life easier for farmers and ranchers,” he said. USDA in the process will become more efficient, Scuse said. Eventually more timely crop reporting information could help the National Agricultural Statistics Service improve the accuracy of its crop production reports, particularly during the planting and harvest seasons when planted acreage and crop yields can change in a matter of days due to changes in the weather or crop prices. The streamlining initiative will be implemented in three steps. The first will give farmers the choice of filing their crop report either with their crop insurance agent or with FSA. That information then will be shared with the various agencies. The second step, which Scuse believes could be doable in two to three years, will allow farmers to file their crop reports online. “You’ll have the ability to
file your crop report from home,” Scuse told IFB members. “It will help us at FSA manage the flow of work.” The third step, which could be implemented within four or five years, will allow farmers to take planting and yield information gathered from global positioning systems in their tractors and combines and download it online directly to FSA. “We will have more accurate and up-to-date information for crop reports,” Scuse said. The expanded use of technology for crop reporting is not expected to have an adverse effect on the number of FSA workers or offices. Farmers who do not have Internet access and those who prefer to give their crop reports in person still will have the option of going into their FSA office. USDA also is in the process of reducing the time it takes to file disaster declarations, Scuse added. IFB policy supports the streamlining of crop reporting procedures.
Michael Scuse, right, acting undersecretary for USDA’s Farm and Foreign Ag Service, discusses the Acreage and Crop Reporting Streamlining Initiative with Illinois Farm Bureau members, left to right, Dwayne Anderson (Henry County), Randy Poskin (IFB District 6 director), Doug Anderson (Ford-Iroquois counties), and Michael Pettengill, American Farm Bureau Federation intern from Lake Zurich. The meeting, held at USDA headquarters, took place during the IFB Marketers to Washington trip. (Photo by Daniel Grant)
FCC reviewing concerns about ag GPS impacts BY MARTIN ROSS FarmWeek
Farm groups hope to find a win-win solution for producers and their rural neighbors as federal officials plumb the ramifications of a high-tech communications plan. Today (Monday), the Federal Communications Commission (FCC) ended public comment on a proposed waiver that would enable LightSquared, a mobile satellite communications company, to operate high-powered cellular base stations. The company, formerly known as Skyterra, plans to develop a wholesale 4G wireless broadband communications network integrated with satellite coverage across the U.S. Ag interests fear that network could cause disruptions in satellite global positioning systems (GPS) crucial to mapping of field boundaries and roads; precision planting; targeted fertilizer/chemical applications; and operation during conditions of low field visibility. The American Farm Bureau Federation (AFBF) has asked the FCC to ensure LightSquared’s plan would create no interference with GPS receivers and “that the cost of resolving this issue not be passed along to farmers and ranchers,” through higher GPS or equipment costs. AFBF stressed support for rural high-speed broadband expansion. However, that expansion should not come at the expense of satellite-driven “precision farming” and the production/conservation benefits it offers, AFBF policy specialist R.J. Karney told FarmWeek. “Think of a rainbow,” Karney illustrated. “Within that spectrum, you have all your different sections. Say GPS is in the green portion of that rainbow — it runs on the upper portion of that green section. LightSquared has purchased for its use the bottom part of that green section. “GPS is a weaker signal compared with what LightSquared could produce with its satellites. There is a buffer between the two, but LightSquared signal’s just strong enough that it sort of interferes with GPS. “If there’s a technical fix for this, that would be great — we’d be getting our broadband deployment and our farmers and ranchers could rely soundly on their precision agriculture.” The federal Departments of Defense, Transportation, and Homeland Security have joined producers in their concerns about potential GPS disruption. The House and Senate have conducted hearings on the issue, and AFBF has recommended an additional panel to explore its ag-specific implications. Meanwhile, FCC Chairman Julius Genachowski pledged last week that “we’re not going to do anything that creates problems for GPS safety and service as we explore technical solutions that will both protect GPS and allow a new service to launch.”
Page 5 Monday, August 15, 2011 FarmWeek
MARKETS
Groups anxious about cash grain communications BY MARTIN ROSS FarmWeek
Major grain organizations last week asked the Commodities Futures Trading Commission (CFTC) to hold the phone on proposed recordkeeping rules dictated under congressional finance reforms. The Grain and Feed Association of Illinois (GFAI) is concerned by a proposed requirement that members of designated contract markets (DCM) “record all oral communications that lead to the execution of transactions in a commodity interest or cash commodity.” The proposal would require records be maintained for five years. The CFTC drafted proposals under the 2010 Dodd– Frank Wall Street Reform and Consumer Protection Act, which seeks sweeping changes
across U.S. financial institutions and agencies. In a letter to CFTC Secretary David Stawick, GFAI Executive Vice President Jeff Adkisson noted many grain companies, feed manufacturers, processors, and related firms are members of DCMs such as the Chicago and Kansas City exchanges or the Minneapolis Grain Exchange. Some own and operate networks of grain elevators, mills, or processing plants that buy crops directly from growers. Adkisson said as written, he fears CFTC’s proposal could extend into cash grain markets, requiring employees at ag facilities to record phone conversations with growers from whom they buy cash grain. Elevators could be required to maintain e-mails or FAXes, as well, he warned. He suggested the proposal
could result in an “undesirable bifurcation” of the cash grain market, with differing rules for DCM members and non-members. Adkisson urged the CFTC to amend its rule to “fully recognize” the regulatory-exempt status of cash commodity sales and cash forward contracts. “We believe strongly that such regulation of the cash marketplace was not intended by Congress nor, perhaps, by the commission,” Adkisson said. “Cash transactions, including cash forward contracts, explicitly have been exempted from CFTC regulation, but a literal reading of the proposal would seem to contradict this well-established concept.” Financial reforms were aimed largely at Wall Street and other mainstream institutions deemed partially responsible for the 2008 economic decline, Adkisson said. Ag
markets “have performed very well and have been very transparent,” and as a result, “there’s not a fire to put out,” he told FarmWeek. Worst-case interpretation of the proposed CFTC rule would impose an “added cost of doing business” on the industry, Adkisson said. He argues the knowledge that conversations are being recorded likely would “stifle the normal flow of information” between
growers and their buyers or brokers, possibly affecting marketing decisions. “It’s such a slippery slope to start down this road,” Adkisson said. “Does it mean you have to record the entire conversation, or do you just have to record (contractual) confirmation? “In the industry, so much of our conversation is that ebband-flow and give-and-take, not really related to the contractual arrangements, per se.”
STATE FAIR SHOW RING ADVICE
CFTC OKs plan to hike corn limits The Commodity Futures Trading Commission has approved a plan by the CME Group to raise daily trading limits on corn futures and options, allowing the exchange to implement a change that many grain-handling companies strongly oppose. The CME Group said last month it would ask the Commodity Futures Trading Commission for permission to raise the trading limit to 40 cents per bushel from the current 30 cents. The new limits go into effect on
Aug. 22 for Chicago Board of Trade corn futures, corn options, and mini-sized corn futures. Doug Yoder, senior director of marketing and affiliate management for Illinois Farm Bureau, said he was not surprised the CME Group implemented the new price limit for corn. “We assumed (CME Group) would go ahead and approve the proposal,” Yoder said last week during the IFB Marketers to Washington trip. CME Group was concerned the value of the daily limit
NAP application deadlines coming USDA Farm Service Agency (FSA) State Executive Director Scherrie Giamanco urges producers who seek 2012 coverage through the Noninsurable Crop Disaster Assistance Program (NAP) to do so soon. NAP provides assistance to producers of noninsurable crops when low yields, loss of inventory, or prevented planting occur due to normal disasters. “Purchasing a crop insurance policy is an easy way for producers to practice risk management,” Giamanco said. Canola has a NAP application closing date of Aug. 31. The following “value loss” crops have a Sept. 1 application closing date: Christmas trees, aquaculture, turfgrass sod, floriculture, and mushrooms. The following crops have a NAP application closing date of Sept. 30: forage and grazed crops (such as alfalfa, mixed forages, and grass), barley, and rye. Fruit and perennial crops such as apples, asparagus, blueberries, caneberries, grapes, nectarines, peaches, pears, plums, rhubarb, and strawberries have a Nov. 20 application closing date. Honey has a Dec. 1 application closing date. Spring and summer planted crops have a closing date of March 15, 2012. In order to meet eligibility requirements for NAP, crops must be noninsurable, commercially produced ag commodity crops for which the catastrophic risk protection level of crop insurance is not available. If the Risk Management Agency (RMA) offers coverage for a crop in the county, then NAP coverage is not available for that crop. In the event of a natural disaster, NAP covers the amount of loss greater than 50 percent of expected production based on the approved yield and reported acreage. Eligible farmers can apply for coverage using Form CCC471. They must file the application and service fee by application deadline. That fee is the lesser of $250 per crop or $750 per producer per administrative county, up to a total $1,875 for those with farm interests in multiple counties. For more information on sales closing dates and NAP, contact the local FSA office.
compared to the value of total corn contracts was out of line, according to Yoder. The move, however, was opposed by some farmers and representatives of the U.S. grain elevator industry. “There is concern about added volatility and just more exposure, from a margin standpoint, (farmers and others in the grain industry) could face on a daily basis,” Yoder said.
Payton Creasey, left, 14, and her 13-year-old sister, Alex, share advice as they prepare to enter the show ring last week for an Illinois State Fair junior livestock class on the Illinois State Fairgrounds, Springfield. The daughters of Robb and Susan Creasey of Macomb joined thousands of livestock exhibitors on the opening days of the State Fair. The fair will run through Aug. 21. (Photo by Ken Kashian)
FarmWeek Page 6 Monday, August 15, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had cooler, more normal temperatures last week, along with a nice 0.75 of an inch of rain on Monday night (Aug. 8). It was a pretty quiet week until Thursday, when the latest USDA crop report put some new life in the grain markets. It looks like the hot weather and lack of rain have had an effect on the final yield, like everyone expected they would. The fields of corn that were blown down in mid-July have a lot smaller ears and likely will not yield as much. Even considering spots that will not yield as much, we still have a very good crop of corn and beans at this point of the growing season. Have a good and safe week. Pete Tekampe, Grayslake, Lake County: A great week in Lake County. We got 1.6 inches of rain over the weekend (Aug. 6-7) in several showers. That was enough to keep the balers out of the field until Thursday. Not much straw or second-cutting hay was baled. Corn is looking good and growing fast. Beans took a step backward with the rain starting to deteriorate their growth. We’re seeing stress spots because of the wet feet they have. Spots are turning yellow and some beans are actually dying. Still some oats to be cut. Have a great week. Leroy Getz, Savanna, Carroll County: Rain for the week of 1.1 inches on Monday (Aug. 8) on my farm. Storms in the southwest part of Carroll County with tornadic winds uprooted trees onto homes and dumped up to 3 inches of rain. Cooler temperatures were a relief for the livestock and people. During those hot days, milk production dropped as much as 25 percent. Corn ears are showing some signs of dent and still look to be an average yield. Lots of deer damage. Growing degree units are now at 2,058. Hope the financial markets settle and we return to some stability. Ryan Frieders, Waterman, DeKalb County: The weather was beautiful last week. We received 2 inches of rain over a couple days and it was the first time we didn’t have gusty winds all summer long. The temperatures have been much cooler, in the mid-80s, and the nighttime lows have been in the low 50s. The crops are filling in and appreciate the weather change. Ears on corn are average; size was limited by early-season stress. Soybeans continue to set and fill pods. Early estimates also equate to average yields. August will be an important month in determining final yields. Larry Hummel, Dixon, Lee County: Another week of nice showers. Most areas received close to 2 inches. The big story last week was disease pressure that is starting to show up in a few fields. For soybeans it is sudden death syndrome, although I haven’t confirmed it yet. Brown stem rot has similar foliar symptoms. In corn, it’s Goss’s wilt where the upper leaves on the plant die prematurely. In both cases, symptoms are showing up early in the season. I’m assuming that will translate into higher yield losses. Joe Zumwalt, Warsaw, Hancock County: The temperatures have dropped significantly, but Western Illinois has received only scattered light rain over the past month, and the crop is really showing it. The corn is turning fast since the last measurable rainfall was on June 25. Early yield checks are extremely disappointing — ranging from 60 to 125 bushels per acre. I believe some producers will begin harvest before Labor Day. The soybeans are beginning to show drought stress as well and several fields in the area have been sprayed for spider mites. I don’t believe that I have ever mowed roadsides when it was this bone dry. Even the alfalfa is needing rain. The cooler temps are wonderful, but a gentle couple inches of rain would be greatly appreciated.
Ken Reinhardt, Seaton, Mercer County: I had a short 0.2 of an inch of rain on Aug. 5, but there was a 70 percent chance of rain Friday night. Test weight of corn is going to suffer further if we miss rain again. The county will not make the 170 bushel state average USDA came out with and may not reach the 153 bushel U.S. average forecast in the August crop report. Numerous yield checks have been in the 140 to 150 range, with one down to 50 bushels. Soybeans look very stressed. Ron Moore, Roseville, Warren County: We did not receive any rain last week. The cracks in the cornfields are now 15 inches deep. The tile lines have stopped running any water. Unless we get significant rain, harvest will be in early September here. The corn is all dented and the shucks are starting to change color. Soybeans look better with pod fill starting. Rains in August and September will help the yield prospects. Pasture conditions are deteriorating as well. Some of the creeks may dry up in the next few weeks, so we may be moving cattle home sooner than expected. Jacob Streitmatter, Princeville, Peoria County: Wow! The weather can change fast. From temperatures in the upper 90s to now highs in the 70s. With the change in temperature, showers and storms followed. From strong winds and flat corn and some rain, to no wind and no rain. After going through temperatures in the upper 90s, pollination with no moisture is not good for a crop. The corn tipped backed around two inches on the ears and did miss some pollination on random kernels on the ear. We’ll leave the rest up to the combine to decide. Tim Green, Wyoming, Stark County: Another nice week with temperatures in the mid-80s. The humidity came down and everybody seemed to be in a little better mood. We could still use one more rain to help the corn finish and the beans move along. People are scouting fields and checking yields. In general, those who have looked are thinking they are going to be a little disappointed in the yield, but time will tell. Have a safe week. Mark Kerber, Chatsworth, Livingston County: Crops looked good and green going to Colorado on the northern route, but more burnt up coming back through Kansas and Missouri. Some spotty rains were around here last week, but our immediate area received only 0.10 of an inch. A big rain event is needed to finish off the corn and keep the soybeans growing. Farmers are trying to figure out how badly the crop is hurt with no rain this summer. My neighbor says to stay out of the cornfields because it’s not good. Only look at the outside rows. Dry weather will bring on spider mites to soybeans, so everyone seems to be watching for them. Farm activities include scouting, mowing, and getting machinery and bins ready for fall and, yes, the meetings have started. Markets are up and down. Outside markets will influence price direction, along with demand and our supply. Ron Haase, Gilman, Iroquois County: On Monday, Aug. 8, our farms received from 0.2 of an inch up to 1.7 inches of rain. Local corn development is anywhere from the R2 or blister stage up to the R4 or dough stage. Most soybean fields range from the R3 or beginning pod growth stage up to the R5 or beginning seed growth stage. Local closing bids for Aug. 11: nearby corn, $7.17; new-crop corn, $6.93; nearby soybeans, $13.24; newcrop soybeans, $13. Last week we attended the 39th Exposition in Rondonopolis, Brazil. It is equivalent to our county fair.
Brian Schaumburg, Chenoa, McLean County: Much cooler temperatures and 0.25 to 0.5 of an inch of rain early in the week helped fend off a more rapid deterioration of crops. Early-corn yield surveys are finding 20 to 60 percent reductions in yields based on 10-year averages. Some hybrids are not holding up well at all compared to their refuge counterparts. Aerial soybean fungicide/insecticide treatments were completed. Kudos to the U.S. Department of Transportation for their decision on trucking regulations. This proves we can fight back against over-regulation. Corn, $7.19, $6.89 fall; soybeans, $13.34, $13.02 fall; wheat, $6.56. Steve Ayers, Champaign, Champaign County: Friday morning I had a trace of dirt and 0.02 of an inch long cobweb in the rain gauge. But three waves of rain were forecast to move through Friday night into Saturday, with coverage of 0.25 to 0.75 of an inch. USDA has our eastern crop reporting district at 51 percent very short, 42 percent short, and 7 percent adequate topsoil moisture, so any rain will be soaked up like a sponge. On Monday, Aug. 8, Champaign had a localized deluge of 0.55 of an inch in 45 minutes. On Tuesday, Aug. 9, the Douglas County Farm Bureau crop tour found an average of 145.7 bushels per acre, with a range of 100 to 208 bushels per acre. See you at the fair! Wilfred Dittmer, Quincy, Adams County: It was another clear, cool, and dry morning in our county Friday with showers predicted. The crops need moisture more and more with each passing day. Showers last weekend (Aug. 6-7) amounted to only a few drops on the sidewalks. Some cornfields are showing stress more than others, depending on soil type tillage, and if the field was lucky enough to catch a shower. Soybeans also are hanging on, but sure could use a drink. We still have some of those Japanese beetles also. Have a good week. Carrie Winkelmann, Tallula, Menard County: We are dry. There has been no rain here for two weeks and the corn is starting to suffer. Ears are aborting the tips. For good news, my husband and I are expecting a new addition to the family at the end of December. We are expecting a little girl, our first child! Tom Ritter, Blue Mound, Macon County: I sound like a broken record, but we still have had no rain. It’s been seven, possibly eight weeks without measurable precipitation. All of the rains have gone north or south. All of the grass is brown and corn is firing. Cooler temperatures have helped a little bit, but there is a lot of moisture stress, especially on lighter or compacted ground. Farmers are not very optimistic on corn yields, especially corn after corn. Some may be looking at a 30-bushel drop in yield from corn after beans. Soybeans — with rain forecast for the weekend — might still have a possibility of gaining some yield back. But beans, being a dry weather crop, should fare better than the corn with or without rains during the weekend. At least prices are at higher levels, which will help some with the gross per acre. We will probably see corn harvest starting within the next two weeks in this area. Todd Easton, Charleston, Coles County: It was another dry week in Coles County with only a teaser shower blowing through on Monday (Aug. 8). The good news is that temperatures have cooled down, which has been a relief to both crops and people. With the cooler temperatures, the die-off of the corn crop has slowed down, but many disappointing ears are being pulled out of the fields. The Coles County Farm Bureau will be doing a yield check this coming week, and I am sure everyone will be very interested in what is learned. There was a significant chance for rain during the weekend, and hopefully it materialized and put some pods on the soybean plants that have been sitting in the field waiting for a drink for several weeks now. Keep your fingers crossed.
Page 7 Monday, August 15, 2011 FarmWeek
CROPWATCHERS David Schaal, St. Peter, Fayette County: Enjoying the somewhat cooler temperatures. No rain here for the week. Farmers are walking into cornfields and not thinking yields are going to be quite as good as expected a few weeks ago. The heat has caused some pollination problems, and along with that, the corn ears have tipped back. We are still thankful that we had the moisture we had through the high-temperature period. The early-planted and early-maturing beans have seen some bloom abortion. Overall, we are still hoping and praying for an average or a little above average yield. A lot of grain bin cleaning out and mowing of road ditches and waterways is going on. USDA shaved back on what it first thought we had out here in the country. Have a good week. Ted Kuebrich, Jerseyville, Jersey County: Jersey County received a very welcome 2.5 inches of rain last week. It will be a big help in filling bean pods. The early-planted corn will not be helped as much as the later corn. After the rain, the temperature cooled down to the low 80s. Prices at Jersey County Grain, Hardin: cash corn, $7.13; fall corn, $6.84; January 2012 corn, $7.07; cash beans, $13.19; fall beans, $12.88; January 2012 beans, $13.26; June/July wheat, $6.66.
Rick Corners, Centralia, Jefferson County: We had a nice 0.75 of an inch shower early Saturday morning (Aug. 6). It didn’t save the day, but sure helped break the downfall for a few days. Had some sweet corn the other day, but the grains on it were pretty sparse. Hope the field corn is not like that. I’m afraid to look. Dave Hankammer, Millstadt, St. Clair County: The past week brought relief with temperatures ranging from highs in the low 80s to lows of the upper 60s, making daytime tasks easier. The last rain amounted to 0.3 of an inch on Aug. 5 and fell on only a small area of the region. The weather forecasters continue to promise scattered rain showers from the west, but those haven’t developed yet. The crops continue to progress with soybean plants adding new growth and corn plants filling out the ears. There still is moisture in the soil, but a soaking rain would help to move the soybean crop along. On a recent visit to an open house dinner in a nearby county, I noted the earlier-planted corn has started the dry down process with the husk of the ear changing color and the lower leaves of the plant already brown. Although we had a mixed bag of planting dates, some farmers may start corn harvest around Labor Day. Local grain bids: corn, $7.05; soybeans, $13.17; wheat, $6.56. Have a safe week.
Dan Meinhart, Montrose, Jasper County: No measurable precipitation fell this past week. The first part of last week was hot and humid. By mid-week it cooled to highs in the 80s and lows in the upper 50s or lower 60s at night. Fungicide application continues on both corn and beans. Farmers also are hauling grain, baling hay, and mowing road ditches and waterways. The lawn continues to need mowing every week. There was a chance of rain over the weekend. A nice rain will be most welcome. Temperatures this week are expected to be similar to what we have been experiencing the last several days. Ken Taake, Ullin, Pulaski County: We finally received some much needed rain last weekend (Aug. 6-7). We received about 1.25 inches all together here on our farm from several small showers. Rains were highly variable. I’ve heard of everything from less than 1 inch up to 3 inches, but I think everyone received at least something. It makes the crops look better at least for a little while. I’m sure the rains were too late for the early corn, but it sure will help the late corn and the soybeans. Pulaski County Fair is this week. We usually get a rain for the fair, and we sure could use another shower. Please take time to be safe during this coming week. Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Crop conditions continue to deteriorate in Illinois BY DANIEL GRANT FarmWeek
Many Illinois farmers have lowered their crop yield expectations as potential bushels evaporated due to a combination of heat and dryness. Illinois Farm Bureau members discussed the situation last week with Brad Schwab, state statistician with the National Agricultural Statistics Service (NASS) Illinois field office, during IFB’s Marketers to Washington trip. Eric Rund, a farmer from Champaign County, reported his area from July 1 through the first week of August
received just 0.3 of an inch of rain. “It’s getting progressively worse,” Rund told FarmWeek. “At the end of June, I had probably 95 to 100 percent of a corn crop. Now I’ve probably got about 75 percent of a crop.” The situation was the same for Steve Stallman, a Randolph County farmer. “We’ve been short on rainfall,” he said. “I’m still optimistic and hoping for average yields. That’s about the best I can expect.” NASS last week reduced the portion of crops in Illinois
rated good to excellent by 3 percent for corn and 1 percent for beans. It was the fifth consecutive week crop ratings declined in the state. Crop conditions last week were rated 50 percent good to excellent, 33 percent fair, and 17 percent poor/very poor for corn and 57 percent good to excellent, 32 percent fair, and 11 percent poor/very poor for beans. “We’ve seen declining corn conditions, and they continue to drop,” Schwab said. “The heat and lack of rain certainly had an impact on corn in Illinois.”
Some notes on tillers and tassel ears BY KEVIN BLACK
“Sucker” is an old term referring to the side branches on a corn plant. The term originated in the belief that these branches sucked the resources from the main stalk. Although not as prevalent as in past years, presence of tillers Kevin Black or suckers in corn, along with the curious tassel ears, has prompted some comments and questions. We also have heard of tassel ears on the main cornstalk. This is extremely uncommon. Following are some notes about corn tillers and tassel ears: • Tillers often are found when growing conditions are good.
• Tillers may be produced when plant populations are high but are more common at lower-than-optimum plant population levels. • Injury to, or inhibition of, the growing point of the corn may force it to produce tillers. This generally does not occur uniformly within the stand. The cause of this injury often may be determined through careful examination of the corn plant and its growing point. • Ears or tassel ears may be produced on tillers, but these seldom survive until harvest. Tillers often fall over before harvest begins. • Nutrient movement between the main stalk and the
tiller is limited, but the main stalk may be able to borrow resources from tillers under stressful growing conditions. Remember that many years of corn genetic selection have resulted in plants having single stalks that bear only one or two ears, with the male (tassel) and female (ear) flowers separated on the plant. This was not so with primitive corn relatives. From time to time, the corn plant tries to revert to old growth habits and we see tillers and tassel ears. Kevin Black is GROWMARK’s insect and plant disease technical manager. His e-mail address is kblack@growmark.com.
The average statewide temperature in July was 80.1 degrees, 4.3 degrees above normal. Topsoil moisture in the state the first of last week was rated 55 percent short/very short and 42 percent adequate with just 3 percent surplus. Most of the surplus moisture was confined to parts of the northwest, northeast, and east-southeast regions of the state. The crop outlook as a result was much brighter last week in some of those areas of the state. “It could be one of our
best corn crops,” said Dale Pitstick, who farms near Chicago. “Whatever (corn) was down (due to windstorms earlier this season) is back up and (the majority) tasseled and pollinated just fine.” Schwab noted the heat wave accelerated crop development in some areas. Twenty-nine percent of the corn crop was dented in Southeastern Illinois as of the first of last week. “There’s going to be some farmers harvesting corn by the end of this month in Southern Illinois,” Schwab added.
Auction Calendar
Tues., Aug. 23. 83.91 Ac. LaSalle Co. Soy Capital Ag Services, www.soycapitalag.com Wed., Aug. 24. Douglas Co. Land Auction. TUSCOLA, IL. Hertz Farm Mgmt., Inc. www.hfmgt.com Thurs., Aug. 25. 9 a.m. Summer Farm Closeout and Consignment Auction. AgriTech Inc., RAYMOND, IL. Thurs., Aug. 25. 10 a.m. Farm machinery. Dennis Reep Estate, LUDLOW, IL. Bill Kruse, Auctioneer. billkruse.net Fri., Aug. 26. 10 a.m. DeKalb Co. 80 Ac. Sealed Bid. Children of Walter and Mildred Luxton, MALTA, IL. Ron Klein or Larry Luxton. Fri., Aug. 26. 10 a.m. Land Auction. Robert and Verna LaBeau Trust, Robert B. LaBeau, Trustee, KANKAKEE, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com Fri., Aug. 26. 10 a.m. Henderson Co. Land Auction. Paul and Debra Anderson, RARITAN, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Fri., Aug. 26 and Sat., Aug. 27. 9 a.m. both days. Consignment Auction. RANTOUL, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Aug. 27. 10 a.m. Estate Auction. Ralph Siebert Estate “Dec’d”, LEBANON, IL. Mark Krausz Auction Service. krauszauctions.com Sat., Aug. 27. 9 a.m. Pre-harvest consignment sale. LELAND, IL. Espe Auctions. Sat., Aug. 27. 10 a.m. DeKalb Co. farmland. Lyle & Gertrude Koppen Estate, WATERMAN, IL. Gordon Stade, auctioneer. Sat., Aug. 27. 9:30 a.m. Marshall Co. Farmland by Sealed Bid. Eric C. Peterson and William H. Helm I II, VARNA, IL. Thomas E. Davies. tdavies@mtco.com or mirandah@mtco.com
Wed., Aug. 17 and Thurs., Aug. 18. 9 a.m. Machinery and construction equipment. CARTHAGE, IL. Sullivan & Son Auction LLC. Thurs., Aug. 18. 9 a.m. CST. Huge Equipment Auction. CHARLESTON, IL. Bauer Auction Service. www.commoditytraders.biz Thurs., Aug. 18. 8:30 a.m. CST. Full Line Liquidation Eq. Auction. Formerly Hinkle Produce, CISSNA PARK, IL. Schrader Real Estate and Auction Co., Inc. www.schraderauction.com Fri., Aug. 19. and Sat., Aug. 20. 8:30 a.m. both days. Consignment Sale. ANNAWAN, IL. Hatzer and Nordstrom Eq. Co. www.hatzernordstromauction.com Sat., Aug. 20. 9 a.m. Farm machinery and miscellaneous. Joan M. Allen Exec., Estate of John P. Allen, NORTONVILLE, IL. Moss Auctioneers. auctionzip.com ~ Auctioneer #21727 Sat., Aug. 20. 9 a.m. Large Multi Farmer Auction. OKAWVILLE, IL. Riechmann Bros., LLC. www.riechmannauction.com, www.topauction24-7.com and www.biddersandbuyers.com Sat., Aug. 20. 9 a.m. Farm machinery and equipment. Glenn F. Koch Estate, VARNA, IL. Lauf Auction Service. Sat., Aug. 20. 10 a.m. Farm, livestock and hay equipment. Dale Hammitt, COLFAX, IL. Haycraft Auction Co. Mon., Aug. 22. 9:30 a.m. Large Fall Machinery Auction. TAYLORVILLE, IL. James Micenheimer Auction Service. www.micenheimer.com Mon., Aug. 22. 1 p.m. 143 Ac. Champaign & Ford Co’s. MAHOMET, IL. Murray Wise Assoc., Inc. www.murraywiseassociates.com
FarmWeek Page 8 Monday, August 15, 2011
livEsTOcK
Grower: Safety remains turkey industry priority BY MARTIN ROSS FarmWeek
Kauffman Turkey Farms in Waterman is one of the country’s last independent family turkey farms, with 80,000 birds and its own federally inspected dressing plant. While his turkey is fresh and local, Robert Kauffman resists using trendy consumer catchphrases such as “organic” or “free range.” But as federal officials continued last week to investigate a nationwide salmonella outbreak linked to ground turkey, Kauffman stressed his and his fellow producers’ commitment to on-farm biosecurity and consumer safety. Earlier this month, USDA asked Arkansas-based Cargill Meat Solutions to recall 36 million pounds of ground turkey product amid concerns it may have contributed to the death of a 65-year-old California
woman and illnesses for 77 people in 26 states. Utah officials last week reported a new case. The USDA recall was related to ground turkey “chubs” (tubes) dated for use through Aug. 23 and
ing the winter, in indoor facilities in DeKalb County. “The way we keep that bird healthy hasn’t changed,” he said. “You start off with a very clean environment. We do a complete cleanout and disinfection after a flock has
‘We try to keep the entire building, the entire environment, the water lines as clean as possible and get that bird off to an excellent start.’ — Robert Kauffman Kauffman Turkey Farms
bearing the number “P-963” inside the USDA’s inspection mark. Visit {www.fsis.usda. gov/News_&_Events/Recall _060_2011_Release /index.asp} on the web for details. Kauffman raises his birds both on the range and, dur-
left. “We try to keep the entire building, the entire environment, the water lines as clean as possible and get that bird off to an excellent start. It’s not really going to have a developed immune system for at least five weeks. We
have to keep it healthy.” Kauffman’s flock health program begins with early vaccination for routine turkey diseases. He is sensitive to the debate over antibiotic use in mature poultry but uses drugs when unexpected threats put consumers at risk or may cause animal suffering. Kauffman questions the concept of “antibiotic-free” meat, citing stringent drug withdrawal standards for birds. “Go to any meat case: I’ll show you antibiotic-free meat,” he told FarmWeek. In order to maintain a secure on-farm environment, Kauffman discourages visitors from entering the turkey “house.” Visiting growers or industry colleagues wear disposable “boots” and sometimes protective coveralls
inside the facility to prevent disease transmission between flocks. NEARLY A HALFSTATE away, 2011 Tremont Turkey Festival Co-Chairman Jim Moore reports the Central Illinois event has become a model for food safety. Tremont’s celebration is one of the largest U.S. festivals still allowed to prepare its own food — workers in June served up to 1,000 turkey sandwiches per hour at the 46th annual festival. Birds for the festival were processed and frozen out-ofstate, carefully thawed, and stored at a prescribed temperature prior to grilling. Public health officials from throughout the country visit the small-town gala “to show other festivals how to do this stuff,” Moore said.
DATEBOOK Aug. 18 University of Illinois Agronomy Day, South Farms, Urbana. Aug. 19 Cover crop workshop, seeding demonstration, 9 a.m. to noon, Franklin Farm, Lexington. For meal reservations or details, call 309-452-0830. Aug. 19-21 Horse Days 2011, 6 a.m. to 11 p.m. daily, Boone County Fairgrounds, Belvidere. Call 866-675-2783 or go online to {www.horsedays.net}. Aug. 26 – Sept. 5 Du Quoin State Fair, Du Quoin. Aug. 30 - Sept. 1 Farm Progress Show, Decatur. Sept. 5-7 IAA Bike Ride, across Christian, Logan, Macoupin, Menard, Montgomery, and Sangamon counties.
Page 9 Monday, August 15, 2011 FarmWeek
specialty growers
New veggies designed for consumer tastes BY MARTIN ROSS FarmWeek
When Consuelo Madere says her company is trying to get into the consumer’s head, she may mean targeting a tomato that has a garden flavor or, literally, a head of lettuce both kids and their parents can enjoy. Since 2005, St. Louis-based Monsanto has worked with 23 vegetable crops. Beyond crop disease, harvest, and shelf life issues, researchers explore “the consumer experience when it comes to eating vegetables,” according to Madere, Monsanto vice president for global vegetable seeds. “If you make them taste better, people will eat more of them,” she concludes. The U.S. Centers for Disease Control reports fewer than 25 percent of U.S. adults consume the recommended number of daily fruit or vegetable servings, “and if you look at teenagers, it’s even worse,” Madere said. Solving that dilemma requires “better seeds that lead to better and tastier vegetables,” she said. As a result, Monsanto has developed Crisphead Romaine Cross lettuce, which melds the popular appeal of conventional iceberg lettuce with the nutrition of romaine. “People, especially children, tend to like the crunch and sweetness of iceberg, but romaine has a lot more nutrient value,” Madere told FarmWeek. “Our breeders have been able to make a cross we hope to get into the market in coming years.” Taste results from a mix of sugars, acids, and aroma and flavor compounds. Monsanto is analyzing “heirloom” tomatoes sold at farm or upscale markets in the hope of incorporating “backyard garden taste” into commercial varieties available year-round. Meanwhile, Monsanto’s Easy Harvest broccoli features a crown that extends above the leaf canopy and uniform crown maturity, making harvest easier. The broccoli florets also are a darker green, enhancing retail visual appeal. Monsanto plans this fall to launch a new biotech sweet corn. Unlike Syngenta’s pest-resistant GMO sweet corn, which has been in the market for more than 10 years, Monsanto’s product is a “triple-stack” featuring above- and below-ground pest resistance and herbicide tolerance traits. The company initially will target fresh market growers. By reducing pest feeding and competition with fewer inputs, farm marketers and their customers should see generally healthier, more appealing ears, Madere suggested. “There is a dramatic difference in sweet corn that is protected through biotechnology vs. having to spray,” she argued. “Even if you spray, you have to spray many times, and you still don’t get the same kind of control. If you look at the product quality at the end, it’s really quite dramatic.”
Above: Monsanto’s Consuelo Madere compares conventional broccoli, right, with the company’s Seminis Easy Har vest product, which features a crown that grows above the leaf canopy, stems freer of large leaves, and richer coloring for consumers. Right: Crisphead Romaine Cross lettuce, a cross between crispy iceberg and more nutrient-rich romaine that’s been dubbed “rugby lettuce” for its oval shape. (Photos by Martin Ross)
FarmWeek Page 10 Monday, August 15, 2011
ifb in action
IMPORTANCE OF CATTLE, HOGS Students and older consumers can be visually shown the importance of animal agriculture now that the Monroe County Farm Bureau Young Leaders Committee decided to build a cow and pig byproducts disp l a y. T h e l i v e s t o c k c u t o u t s w e r e d i s played at the Monroe County Fair, and most people knew that hamburger, roasts, and steaks came from beef cattle, but they were surprised to learn that such things as detergent, soap, shoe polish, cake mix, shampoo, marshmallows, and pet food also comes from them. Shown here with the cow display are Katie Hammel and Caleb Seboldt. A similar display showing products from hogs also was built. Waterloo High School agriculture instructors Tim and Mindy McDermott and FFA members cut the cow and pig figures out of plywood and Valmeyer resident Dennis Knobloch painted it. Both displays were in the Farm Bureau booth during the county fair and will be placed in the Farm Bureau office lobby so additional consumers can learn more about agriculture’s importance. Teachers also will have an opportunity to use the displays at their schools. (Photo by Brenda Seboldt, manager of Monroe County Farm Bureau)
IFB, FFA drive for soldiers at Progress Show The Illinois Farm Bureau Youth Education Program is working with FFA chapters to collect magazines for the Illinois National Guard’s 114th Agri-business Development Team, which is working to improve farming in Afghanistan. From Aug. 29-Sept. 1 at the Farm Progress Show, FFA Chapters are challenged to donate new and used magazines as reading material for the National Guardsmen. The magazines will be collected at the Illinois Farm Bureau tent on Seventh Street. IFB will package the magazines and send them to Afghanistan. The FFA chapter that brings the most magazines will receive an iPad. For more information, contact Mariah Dale-Anderson, IFB manager of special services, at 309-557-2350.
Page 11 Monday, August 15, 2011 FarmWeek
from the counties
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ORD-IROQUOIS — Farm Bureau and Alliance Grain will sponsor a commodity price outlook meeting at 8 a.m. Thursday at Railside Golf Club, Gibson City. Aaron Curtis, MID-CO, will be the speaker. Call the Farm Bureau office for more information. • A policy development meeting will be at 6:30 a.m. Monday, Aug. 22, at the Farm Bureau office, Gilman. Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development, will be the speaker. Call the Farm Bureau office at 800-424-0756 or e-mail fifb@sbcglobal.net for reservations or more information. • Farm Bureau and Ludlow Co-op will sponsor an outlook meeting at 8 a.m. Monday, Aug. 29, at the Farm Bureau office, Gilman. Graham Utter and Joe Grider, AgriVisor, will be the speakers. Call the Farm Bureau office for more information. AMILTON — A Viewpoint meeting will be at 6 p.m. Monday, Aug. 22, at the Dale Convention Center. Liz Hobart, Illinois Farm Bureau associate director of national legislation and policy development, will be the speaker. A fried fish dinner will be served. Call the Farm Bureau office by Thursday for reservations or more information. • Hamilton and Jefferson County Farm Bureaus will sponsor a bus trip Wednesday, Aug. 31, to the Farm Progress Show, Decatur. Cost is $30, which includes bus, entrance to the show, and a buffet meal on the return trip. Reservations are on a first-come, firstserved basis. Members from neighboring counties may sign up and be placed on a waiting list. Call the Farm Bureau office at 618-643-2347 for reservations or more information. ANCOCK — The Young Leader Committee will sponsor a team to participate in the Agri-Quiz Bowl Tuesday at the Illinois State Fair, Springfield. ENRY — Local county Farm Bureaus will sponsor two “On the Road” seminars Monday, Aug. 22. The first will be from 10 a.m. to noon at the Reynolds American Legion, Reynolds, and the second from 3 to 5 p.m. at the Prophet Hills Country Club, Prophetstown. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Topics will include motor carrier safety regulations, unified carrier registration, and U.S. Department of Transportation number registra-
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tions. Call the Farm Bureau office at 309-937-2411 for reservations or more information. • The Farm Bureau office will host the Young Leaders district discussion meet at 10 a.m. Wednesday, Aug. 24. EFFERSON — A Viewpoint meeting will be at 7 p.m. Tuesday, Aug. 23, at the Farm Bureau office. Liz Hobart, Illinois Farm Bureau associate director of national legislation and policy development, will be the speaker. Dinner will be served. Call the Farm Bureau office at 618242-7069 by Thursday for reservations or more information. • Hamilton and Jefferson County Farm Bureaus will sponsor a bus trip Wednesday, Aug. 31, to the Farm Progress Show, Decatur. Cost is $30, which includes bus, entrance to the show, and a buffet meal on the return trip. Reservations are on a first-come, firstserved basis. Members from neighboring counties may sign up and be placed on a waiting list. Call the Farm Bureau office at 618-242-7069 for reservations or more information. ASALLE — LaSalle, Grundy, Kendall, and Will County Farm Bureaus will sponsor a bus trip Tuesday, Aug. 30, to the Farm Progress Show, Decatur. Cost is $40. Call the Farm Bureau office at 815-433-0371 or the Kendall County Farm Bureau at 630553-7403 for more information. EE — The Lee County Farm Bureau Foundation will sponsor a raffle with five $100 prizes and one $1,000 grand prize. Tickets are $10 each. The winner will be selected at the Lee County Farm Bureau annual meeting at 10 a.m. Thursday, Jan. 19. All proceeds will help fund the ag literacy programs. Tickets are available at the Farm Bureau office or from a board of director. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net for more information. CDONOUGH — The annual McDonough County Farm Bureau Foundation golf outing will be an 8 a.m. shotgun start Saturday at Gold Hills, Macomb. Cost is $50 each or $200 per team. Proceeds will benefit the Ag in the Classroom program. Call the Farm Bureau office for more information. ERCER — Henry, Mercer, and Rock Island County Farm Bureaus will sponsor an “On the Road” seminar from 10 a.m. to noon, Monday, Aug. 22, at the Reynolds Legion Hall. Coffee and donuts will be served.
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Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 309-582-5116 for reservations or more information. • Farm Bureau and Mercer County Hospital will sponsor a grain rescue training seminar from 8 a.m. to 3 p.m. Sunday, Aug. 28, at the Farm Bureau office. Firefighters, emergency medical services personnel, and police are invited. Lunch will be served. Call the Farm Bureau office at 309582-5116 by Monday, Aug. 22, for reservations or more information. EORIA — The Grassroots picnic will be at 6 p.m. Tuesday, Aug. 23, at the Farm Bureau park. A pork loin dinner will be served. Call the Farm Bureau office at 686-7070 for reservations or more information. • Farm Bureau will sponsor a bus trip Friday, Aug. 26, to the Half Century of Progress Show, Rantoul. The bus will leave the Farm Bureau office at 6:30 a.m. Cost is $25. Call the Farm Bureau office at 686-7070 for reservations or
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more information. • Farm Bureau will sponsor a bus trip Wednesday, Aug. 31, to the Farm Progress Show, Decatur. The bus will leave the Farm Bureau office at 6:30 a.m. Cost is $25. Call the Farm Bureau office at 686-7070 for reservations or more information. • Deadline to submit pictures for the photo contest is Sept. 1. Members should place their name on the back of each picture. Cash awards will given for first, second, and third place in three categories, along with Best of Show award. OCK ISLAND — Local county Farm Bureaus will sponsor two “On the Road” seminars Monday, Aug. 22. The first will be from 10 a.m. to noon at the Reynolds American Legion, Reynolds, and the second from 3 to 5 p.m. at the Prophet Hills Country Club, Prophetstown. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Topics will include motor carrier safety regulations, uni-
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fied carrier registration, and U.S. Department of Transportation number registrations. Call the Farm Bureau office at 309-736-7432 for reservations or more information. TARK — Farm Bureau will sponsor a blood drive from noon to 6 p.m. Wednesday at the Toulon Congregational Church. Call 800-448-3543 for an appointment. Walk-ins are welcome. HITESIDE — Farm Bureau will sponsor an “On the Road” seminar from 3 to 5 p.m. Monday, Aug. 22, at Prophet Hills Country Club, Prophetstown. Topics include motor carrier safety regulations, unified carrier registration, and U.S. Department of Transportation number registrations. Call the Farm Bureau office at 815-772-2165 or visit the website {www.whitesidecfb.org} for reservations or more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 12 Monday, August 15, 2011
FB IN ACTION
Outlook for U.S. ag exports is bright — for now BY DANIEL GRANT FarmWeek
USDA recently projected U.S. ag exports this year will swell to a record-high $137 billion. The rise in ag exports is due to a combination of increased demand and higher commodity prices, according to Sarahelen Thompson, director of the USDA Economic Research Service’s Market and Trade Economics Division. “World economic growth has been good for ag commodities’ demand, particularly in developing economies,”
Thompson last week told participants of the Illinois Farm Bureau Marketers to Washington trip during a meeting at USDA headquarters. USDA predicted the trend of increased ag exports and a larger trade surplus of farm products will continue for at least the next 10 years. The prediction was based on strong developing economies, further depreciation of the dollar, and commodity prices that were projected to remain above historical averages. “Long-term, we project (commodity) prices will remain
above historic averages and exports and the trade surplus will continue to grow,” Thompson said. The Obama administration last year unveiled its goal of doubling U.S. exports in the next five years. That obviously would be good news for U.S. farmers, who currently earn about 25 percent of their gross income from export sales, according to Chris Garza, director of congressional relations for the American Farm Bureau Federation (AFBF). AFBF is concerned, howev-
BARE BONES ISSUES
State Rep. David Harris, left, (R-Arlington Heights) chats with Kendall County Farm Bureau board member Bob Stewart, center, and Kendall County Farm Bureau manager Dan Reedy during a tour Harris hosted for his “adopted” county Farm Bureau. The jam-packed day included a walking tour of downtown Arlington Heights and a discussion of local business issues with Jon Ridler, executive director of the Arlington Heights Chamber of Commerce. The group also toured the Arlington Park Racetrack and discussed challenges of the horseracing industry with a race horse owner. The district tour included stops at the Arlington Heights Library and a community theater. The Farm Bureau visitors also included Kendall County Farm Bureau President Wes Morris, county Farm Bureau Treasurer Bill Wykes, and Cook County Farm Bureau member Kim Morton and Cook County Farm Bureau public policy director Bona Heinsohn. Representative Harris is planning a harvest tour and combine ride in Kendall County this fall. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)
GETTING ACQUAINTED
Jo Daviess County Farm Bureau board members Ronald Lee Lawfer, left, and Kyle Embry, right, chat with state Rep. Carol Sente (D-Vernon Hills) during a recent tour of her legislative district by 15 members of the Jo Daviess, Cook, and Lake County Farm Bureaus. Sente recently was “adopted” by the Jo Daviess County Farm Bureau and discussed her district and legislative priorities with her Farm Bureau constituents as well as the visitors. She sought their views on high-fructose corn syrup and other nutritional issues. The group toured the 4,200-student Stevenson High School in Lincolnshire and the newly opened Korean Cultural Center of Chicagoland. The farmers learned about Korean immigration and discussed Korean agricultural and education systems. The group also tasted traditional Korean foods. The representative said she hopes to tour Jo Daviess County after the fall veto session. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)
er, that growth in ag exports could be limited if the U.S. fails to enact free trade agreements (FTAs) in a timely manner. The U.S. still has not ratified trade agreements with South Korea, Colombia, and Panama that could be worth an additional $2.5 billion per year to American agriculture. “Our hope was the FTA (with South Korea) would be done” prior to Congress’ August recess, Garza said. Now the timeline for FTAs is uncertain as budget issues and the deficit have “paralyzed Congress,” said Pat Wolff, director of tax and rural development at AFBF. Garza noted the U.S. in the
past two years already has lost an estimated $1 billion in ag exports due to the lack of FTAs. “We’ve lost market share,” Garza said. “It’s no longer about gaining U.S. ag exports. It’s about preventing further losses.” Thompson reported there currently are about 300 FTAs between various countries around the world. Since the last FTA ratified in the U.S., with Peru in 2009, other countries have implemented 27 additional trade agreements that do not involve the U.S. “If we don’t get these FTAs done, we could lose additional market share,” Garza added. “That potentially will be dangerous for us” in agriculture.
Illinois farmers offer free groceries Members of the Livingston County Farm Bureau Marketing and Young Leaders Committee recently kicked off the “Farmers Feed Us” campaign with a ribbon-cutting at Pontiac County Market. Young Leader member Jenna Kilgus, Kilgus Farmstead, gave out samples of milk products produced on her family farm. Children were given “stress” cows that had the message, “Register to win $5,000 worth of groceries at {www.FarmersFeedUS.org}.” Illinois residents may register for two grand prizes of free groceries courtesy of Illinois Farm Families at that website. Illinois Farm Families, a united effort to create new conversations and connections with consumers, is sponsored by Illinois Soybean Association, Illinois Beef Association, Illinois Corn Marketing Board, Illinois Farm Bureau, and Illinois Pork Producers Association. On the local level, the Livingston County Farm Bureau Marketing Committee is also offering free groceries. Grocery stores in Livingston County have entry forms for a chance to win one of three $25 gift certificates. One winner in August, September, and October will be drawn at the following stores: County Market, Pontiac; Dave’s Super Market, Fairbury; Berkot’s, Dwight; Jamie’s, Forrest; Odell Food Mart, Odell; Cullom Community Market, Cullom; and Art’s Food Center, Chatsworth.
Farm mother Emily Webel of Farmington, seated at center with son, Jack, talks with urban moms who were participants at a Moms Meet-Up event last week in Chicago The event was part of the Illinois Farm Families effort to facilitate conversations between consumers and farmers. About 40 Chicago-area moms attended. In all, four Illinois farm women met with the group and answered questions about food production and family farming operations in the state. (Photo by Lori Laughlin)
Page 13 Monday, August 15, 2011 FarmWeek
FarmWeek Page 14 Monday, August 15, 2011
profitability
Natural gas: Is it the fuel of the future? BY CHARLIE LABELLE
“We are absolutely crazy if we don’t use this fuel; it’s cleaner, it’s cheaper, it’s abundant, and it’s ours,” T. Boone Pickens said. What fuel is Pickens referring to? Charlie LaBelle Natural gas. Nearly 100 percent of the natural gas used in the U.S. is produced in North America. “In the last few years, we’ve discovered the equivalent of two Saudi Arabias of oil in the form of natural gas in the United States. Not one, but two,” said Aubrey McClendon, Chesapeake Energy CEO, during a “60 Minutes” interview. Natural gas production in the U.S. is expected to con-
tinue to grow (see graph). If the supply is so abundant, what will it take for the U.S. to gain independence from foreign oil? A congressional bill, dubbed the Nat Gas Act, would provide tax credits of as much as $64,000 for the purchase of natural gas longhaul trucks, and lesser amounts for lighter vehicles. Pickens started a company to put natural gas pumps into truck stops across the country. The plan is to ultimately build 150 stations along interstate highways to provide natural gas, as well as put pumps into existing truck stops. Natural gas vehicles (NGV) can be built from scratch or created by modifying conventional gasoline vehicles. A brand-new natural gas vehicle costs $4,000 to $8,000 more than a comparable gasoline
vehicle, while modifications typically cost $3,000 to $5,000. Vehicles that run solely on natural gas are known as dedicated NGVs. Vehicles that can operate on both natural gas and gasoline are bifuel vehicles. However, there are some drawbacks. Methane, the
chief component of natural gas, tends to warm the atmosphere, some studies suggest. Also, the method used to extract natural gas, called “fracking,” has been suspect for environmental damage. Large amounts of pressurized water, a proppant (usually
sand), and very small amounts of chemicals are forced down the wellbore to create tiny fissures in the rock so the oil and gas can flow to the surface. The safe utilization of the chemicals on the surface is key to preventing drinking water contamination. Environmental Protection Agency studies have shown that the fracking process, thousands of feet below the earth surface, does not contaminate drinking water. Many large corporations, including Shell Oil, ExxonMobil, and General Motors are working toward the use of natural gas as transportation fuel, moving us closer to energy independence. Charlie LaBelle is GROWMARK’s senior energy analyst. His e-mail address is clabelle@growmark.com.
Soaring land values confined mostly to Corn Belt BY DANIEL GRANT FarmWeek
A large run-up in farmland prices has been all the talk in Illinois and the Midwest in recent years. The average value of cropland statewide from 2009 to 2011 increased by
more than $1,000 per acre. This year’s average price of cropland in Illinois, $5,800 per acre, is up 18.4 percent from a year ago, according to USDA’s ag land values annual report released earlier this month. The trend is the same in
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $11.50-$48.39 $33.00 $37.00 $37.00 n/a n/a This Week Last Week 26,971 20,571 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $101.40 $100.36 $75.04 $74.27
Change 1.04 0.77
USDA five-state area slaughter cattle price Steers Heifers
This week 116.02 116.03
(Thursday’s price) Prev. week Change 110.09 5.93 111.00 5.03
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 135.05 -0.38
This week 134.67
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-180 lbs. for 175.50-220 $/cwt. (wtd. ave. 189.56); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8-04-11 5.6 25.2 31.7 7-28-11 6.0 16.2 32.5 Last year 7.4 14.9 44.8 Season total 1452.6 209.4 1659.4 Previous season total 1412.8 165.9 1734.4 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
the rest of the Corn Belt, where the average value of cropland the past three years has increased from $3,910 per acre in 2009 and $4,240 in 2010 on up to $4,920 per acre this year. “The bulls are loose,” said Mike Walsten of the Landowner Newsletter. “It’s primarily a Corn Belt thing.” Walsten said the strongest demand and highest prices for farmland are for high-quality land capable of producing good corn yields. “The demand for corn ground, bottom line, is the gross per acre,” he said. Demand for top quality land “is being driven by farmers, with cash in their pockets, who want to expand.” The same cannot be said in other regions of the country. In fact, cropland values in 2011 declined 1.3 percent in the Northeast and 1.1 percent in the Southeast. Elsewhere, cropland values in the past year posted more modest gains of 1.4 percent in the Pacific region, 6.3 percent in the Southern Plains, and 6.8 percent in the Delta region. Overall, U.S. cropland values this year increased from $260 per acre (9.4 percent) to $3,030 per acre. The average farm real estate value, a measurement of the value of all land and buildings on farms, this
year increased 6.8 percent to an average of $2,350 per acre, according to the USDA report. Walsten believes cropland values will continue to rise as long as crop prices and farm
returns remain strong. “I see a correction coming,” he said. “But I’m still long-term bullish.” The full land values report can be viewed online at {www.nass.usda.gov}.
Page 15 Monday, August 15, 2011 FarmWeek
PROFITABILITY Corn Strategy
C AS H ST RAT E GI S T
Yields start at a low point Unlike last year, the initial yields for corn and soybeans this year are at a relatively low point — 153 bushels per acre for corn and 41.4 bushels for soybeans. Last year, USDA started with what many felt were high numbers — 165 bushels for corn and 44 bushels for soybeans. The corn number looked especially high even before late-summer weather cut yields more. We have looked at historical yields relative to trend to put all of the years we looked at on equal footing. The three individual years — 1997, 1999, and 2007 — were chosen because the pattern of the crop condition ratings through the growing season up to this point had similar paths as this year. At first glance, this year’s initial estimates look like they may
be starting unusually low, even for corn. But given the July heat stress, there’s a reasonable argument the 153 bushel August estimate for corn was an appropriate place to begin. In 1995, a year with similar heat during pollination, the final yield was 8 1/2 percent under trend. But like last year, USDA started with a relatively optimistic estimate. Hence we didn’t use it for comparative purposes. Soybeans are a more difficult call as this month’s weather will have implications for the final yield. But drought issues across the South and slow plantings in the Corn Belt still can cut into potential and the final yield. Other than true “drought years,” though, soybean yields don’t fall much more than 7-8 percent below trend, not far below where the USDA forecast them. While end-of-season weather is still unknown, unless it’s really poor, downside risk for corn and soybean yields may not be that large because of the levels at which USDA started.
ü2010 crop: Wrap up oldcrop sales on strength. Ending stocks may grow slightly from the latest USDA forecast. ü2011 crop: USDA estimates were positive enough to lift December corn futures close to the $7.23 contract high. With weather and outside market influences having become a little negative, it may be difficult to overcome that, or sustain gains if it does. Long-term technical indicators are overdone, leaving the market vulnerable to turn lower. If you are comfortable with production prospects, boost sales to 60 percent, preferably with a hedge-toarrive contract for winter/spring delivery. vFundamentals: The USDA August crop estimate was a little lower than expected. But upside potential may have been countered by an equally sharp reduction in demand potential. Large world wheat supplies may be as much of a hindrance as early-season high prices over the next few months.
Soybean Strategy
ü2010 crop: The inability to sustain gains and the relatively high price are reasons enough to wrap up old-crop sales. ü2011 crop: November futures might have held support through the tumultuous financial market activity, but they also were unable to get back through $13.50. If you are comfortable with yield prospects, use strength to get sales up to our recommendation. vFundamentals: The production estimate in the August crop report may have come in under expectations, but was countered by demand erosion. And if cool, damp weather were to prevail at the end of the growing season, soybean output could increase from the August estimate. The persistence of high prices into late summer ensure big plantings in South America again this year as well. Already, their big spring crops are allowing large supplies to be carried into our new crop year, potentially subduing our export demand from the outset.
Wheat Strategy
ü2011 crop: Wheat rallied on spillover support from corn
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and its friendly USDA report. Chicago December futures struggle to hold gains when they near $7.50. You should have priced another 10 percent last week when Chicago September futures slipped under support. Use current strength to make catch up sales. If you need to move wheat out of storage before fall harvest, either get it priced or arrange for commercial storage. The carry in futures more than pays for commercial storage. Because of the carry, we prefer HTA contracts
for winter or spring delivery for sales. vFundamentals: In its August report, USDA indicated the 2011 U.S. wheat production, 2.077 billion bushels, will be the smallest in four years. The slight reduction came from smaller spring and durum wheat estimates. Maybe just as important was the forecast for a 10 million metric ton (mmt.) increase in world supplies and a 6 mmt. increase in ending stocks, pointing to a more competitive world market.
FarmWeek Page 16 Monday, August 15, 2011
perspectives
If weeds can do it, so can we
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f you’ve been farming very long, and even if you haven’t, you know that weeds have a way of “figuring things out.” They somehow reinvent themselves to become resistant to whatever is being forced upon them. Drought. Herbicides. Flooding. Cultivation. Weeds survive. What does that scenario have to do with USDA Rural Development? The analogy itself has very little to do with Rural DevelopCOLLEEN ment. But it has everything to CALLAHAN do with all of us who live in rural America. Rural America now accounts for a mere 16 percent of the nation’s population — the lowest ever. Yet we feed the world. And despite our decreasing numbers, we have an increasing role in our nation’s energy independence. Unfortunately, our contribution to energy self-sufficiency notwithstanding, the recent census indicates we are becoming more and more irrelevant. I bet you don’t like hearing that, do you? No one wants to be considered immaterial, especially when we’ve long known that we are the foundation of our country and its economy. A recent article that appeared in “Illinois Times” entitled “Devoid of Life” says: “Rural Illinois has been hemorrhaging people since the 1860s or so. That’s when young people in particular started leaving for cities where they could find work. “What happens when the number of people that the Illinois countryside can economically sustain drops below the number needed to gov-
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ern the institutions that modern towns need to sustain themselves?” Hence, if there is strength in numbers, and we are on a documented decline, what do we do? What are our options? Maybe we need to start “thinking” like a weed. Weeds seem to subscribe to the survival of the fittest theory; they thrive in adverse conditions. So how can we, as rural Americans, be innovative, create confidence in the marketplace and thrive like weeds? We must adapt and play to our strengths! Did you know that the cover story on the Nov. 15, 2010, issue of “Newsweek” featured “How the Heartland Could Lead America Out of the Recession”? (A non-farm magazine believes in us!) Did you know that Walmart, SuperValu, Safeway, and Kroger are expanding the amount of locally grown food they offer, saying that buying locally means savings, but that the main objective is to satisfy changing consumer preferences? Did you know that a new report commissioned by Paris-based (as in France) Renewable Energy Policy Network for the 21st Century shows that the renewable energy sector continues to perform well despite the continuing economic recession? And that renewable energy supplied about 16 percent of global final energy consumption and accounted for nearly 20 percent of global electricity production? Or that when you include large and small hydropower, renewable energy accounted for approximately 50 percent of total new powergenerating capacity in 2010? Hmm. We live in the Heartland. We have the capability to grow local food and renewable sources of energy. That means potential new markets, new businesses, new jobs, and maybe people returning to or relocating in rural areas — new, younger people to assist in decisionmaking for our communities. Might we have to do things differently to meet current needs and expectations? As the old adage says, “It’s not the strongest species that survives ... it is the one able to adapt, adopt, and accept change.” And Rural Development will be there to support the changes through available financing and the newly established Rural Council whose core objective is job creation and economic growth in Rural America. If weeds can do it, so can we!
Learning opportunities are plentiful at the fair The State Fair means different things to different people. Some might be interested in seeing the musical groups or perhaps eating a deep-fried Snickers. Truly there is enough variety to keep a smile on one’s face all day, regardless of the temperature. The State Fair also provides an opportunity to show the rest of Illinois how well something is done. There are contests to determine the best marching band, the best decorated diaper contest, the best dog photo, and the longest ponytail, among many others. But to me, the State Fair is about the livestock judging contests. If you are interested in seeing pigs, cattle, sheep, poultry, horses, mules, rabbits, llamas, or goats, each has its own judging competition. WILLIAM While there are many different divisions and BAILEY classes for each type of livestock, a constant is the youngsters who show their livestock at the fair. For them, the State Fair is the Final Four, Super Bowl, and World Series combined. At the fair they are not working with their livestock in the early morning quiet, alone, on their farm. They are surrounded by other young people — male and female — who share the same interest and passion for highquality livestock. What often is a solitary endeavor at home becomes, during the State Fair, a very public effort. As the young contestants arrive at the fairgrounds, they are assigned areas to put their animals; they have the opportunity to see who is nearby, to renew old acquaintances, and to learn who has done well, or not, in local competitions. They also might learn new grooming techniques or ways to keep their livestock calm in the face of large crowds of curious people. If you get a chance, ask some of the young men and women about their livestock. Their knowledge and enthusiasm will surprise and delight you. The reason the livestock and their owners come to the fair eventually arises — the official judging. This is where surprises happen. An animal that has won every contest suddenly receives a fifth place. Why? Perhaps the hot weather has harmed its ability to eat properly or the judge saw something that other judges missed. On the lighter side, if the drama of the formal judging is not to your liking, you could take in the llama obstacle contest, where “rapport, mutual confidence, and trust between handler and llama” is judged. But the livestock competition at the State Fair, in my view, is as much about the young people showing their skills as it is the livestock. William Bailey is chairman of the Department of Agriculture at Western Illinois University, Macomb. His e-mail address is WCBailey@wiu.edu.
Colleen Callahan is the director of USDA Rural Development in Illinois. Her e-mail address is Colleen.Callahan@il.usda.gov. A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701
This was what he had become, a walking stereotype: A Bull in a China Shop.