FarmWeek August 23 2010

ILLINOIS AGRICULTURE in the Classroom will use a grant from the Walmart Foundation to expand its after-school ag literacy program. ........................................2

U. S. REP. TIM JOHNSON favors elimination of the “death tax” but does not see the chances of that happening because of the revenue the estate tax generates. ................................4

A UNIVERSITY OF ILLINOIS crop science professor last week told farmers that if they have problems with resistant waterhemp, their troubles likely will only get worse. ..........7

Monday, August 23, 2010

Two sections Volume 38, No. 34

Task force mulls options

Money scarce, choices few in farm bill debate

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

With only two major ag spending “buckets” left to tap and even nutrition funding — a supposedly sacred cow — no longer strictly sacred, a Washington analyst warns new farm bill ideas likely will require some sacrifice.

Given current indications, “We’re actually going to lose money in the (2012) farm bill,” American Farm Bureau Federation policy specialist Tara Smith advised Illinois Farm Bureau’s Farm Policy Task Force (FPTF) last week.

Beyond the forthcoming 2011 budget reconciliation battle to retain ag funding, Smith cited the possibility of a second round of budget debate in 2012.

House Ag Committee Chairman Collin Peterson (DMinn.), a farm program defender who nonetheless seeks fiscal responsibility in future ag spending, pledged “I will not ask for money outside the farm bill budget.”

During 2008 farm bill debate, House Ways and Means and Senate Finance committees ultimately “pumped in” an added $10 billion — money quickly

diverted to nutrition — and for Peterson, “it was a very frustrating process,” Smith noted.

Food stamp and related programs have received large funding increases over the past three years, but the Senate somewhat surprisingly has targeted some of that money to fund other areas (House action is

expected by lateSeptember), and she suggests champions of those programs could seek to recoup that money, potentially placing “a target on our (ag’s) backs.”

In addition, USDA’s new administrative agreement with crop insurance providers trims $4 billion from the system purportedly for deficit reduction.

While Peterson may see that as

advanced “Brownie points” for the budget debate, “I’m not really sure that’s going to hold true,” Smith said.

“Anyone with new ideas, new programs, changes to (farm) programs that cost money are really going to have to be cognizant of where they’d like to take that money from, within the farm program pot,” she told FarmWeek.

“Direct payments are about $5 billion per year; crop insurance is about $6 billion. Once you look beyond those two

buckets of money, there really isn’t a lot to be had within farm programs.

“Those programs are certainly going to be the targets.

We’ve seen crop insurance take one hit. The question is whether it will be ready to take another, or will direct payments be the primary funding mechanism for changes?”

Smith reported Peterson has “drawn a line” against tapping 2012 commodity funding to See Farm bill, page 4

Crop conditions deteriorate in Illinois

BY DANIEL GRANT FarmWeek

The extreme heat and dry weather that prevailed for much of the first three weeks of August reduced crop yield potential in Illinois, based on recent yield tours.

The Pro Farmer Midwest Crop Tour last week estimated Illinois’ corn yield at 166.5 bushels per acre, down 2.2 percent from the three-year average, according to Roger Bernard, director of the eastern portion of the Pro Farmer tour.

The Soy Capital Ag Services corn yield estimates in McLean County found the same trend. The estimated average yield in McLean County was 182.8 bushels per acre, down about 11 bushels from Soy Capital’s projected yield the past three years.

“You could really see the tip-back (where kernel development was aborted at the end of ears),” said Chad Hoke, assistant vice president and farm manager with Soy Capital Ag Services in Bloomington.

“That had to do with the heat and dry weather.”

Hoke believes soil compaction from last year’s wet harvest and plant competition also played a role in lowering corn yield potential.

Participants on the Soy

Capital yield tour found the highest plant population and ear counts ever recorded on the tour. But they also found the average ear length this year to be the shortest in McLean County since 2001.

“Compaction is playing a role in this year’s yield,” Hoke said. “We expect to see a lot of fall tillage to help alleviate that.”

The Soy Capital tour also found corn after soybeans appears to have the best yield potential (188 bushels per acre) compared to continuous corn (176 bushels) and second-year

corn (164 bushels). Tour results are available online at {www.soycapitalag.com}.

Meanwhile, soybean pod counts taken in Illinois during the Pro Farmer tour were up 16 percent. But production of some soy plants has slowed due to sudden death syndrome in many of the 122 fields that were scouted statewide.

USDA earlier this month projected statewide yield averages in Illinois (based on Aug. 1 conditions) of 180 bushels per acre for corn, up six bushels from last year, and 49 bushels

per acre for soybeans, up three bushels from a year ago.

However, crop condition ratings declined between July 19 and Aug. 16. The portion of the crops rated poor or very poor during that time increased from 10 percent to 13 percent for corn and from 8 percent to 11 percent for beans.

The rest of the state’s corn crop last week was rated 63 percent good to excellent and 24 percent fair while the remaining bean crop was rated 64 percent good to excellent and 25 percent fair.

Corn harvest began last week in some southern regions of the state. Here, Jesse Drew of Benton in Franklin County works on a field of 105-day corn near Ewing that was planted April 20. The moisture level was 17.2 percent with a yield estimate of 140 bushels per acre. Corn yield estimates put the county’s average at 133.5 bushels per acre. (Photo by Larry Miller, Franklin County Farm Bureau manager)

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, August 23, 2010

STATE

Quick Takes PORK PLANT TO REOPEN — A pork processing plant in Rantoul that closed in January 2009 will reopen under a different name.

Trim-Rite, a Carpentersville-based company, recently scrapped its plan to open a pork processing facility in DeKalb and instead plans to reopen the former Meadowbrook Farms facility in Rantoul, the Champaign News-Gazette reported last week.

Meadowbrook Farms’ Rantoul operation was a 200 farmer-member cooperative that employed about 600 people before it filed for bankruptcy and closed in January 2009.

Trim-Rite reportedly will employ about 200 people at the 6-year-old, 120,000-square-foot facility.

COUNTIES OK’D FOR FEDERAL FLOOD HELP — Gov. Pat Quinn last week received approval for federal disaster designations for Carroll, Cook, DuPage, Jo Daviess, Ogle, Stephenson, and Winnebago counties due to flood damage. Victims of the July 22-24 flash floods are now eligible to apply for federal grants and loans for storm-related losses.

“We will begin working immediately with FEMA (Federal Emergency Management Agency) to ensure flood victims can get needed help as quickly as possible,” said Joe Klinger, Illinois Emergency Management Agency interim director.

F E M A , w h i ch a d m i n i s t e r s t h e a s s i s t a n c e p r o g r a m , h a s a t o l l - f r e e t e l e p h o n e nu m b e r 800-621-3362 for victims to apply for assistance. Registration also can be done online at {www.disasterassistance.gov}.

LAME DUCK STILL POSSIBLE — The House last week voted down a proposal by Rep. Tom Price (R-Ga.) that would have pledged Congress would not convene between November and January except in the case of a national emergency.

The failed resolution was an attempt by Republicans to avoid a lame-duck session where there is concern controversial climate change legislation would be passed before the new Congress convenes in January. “A lame-duck session should not be used as a post-election blitz to impose liberal programs that Americans do not support,” Price argued.

However, a lame duck session may be needed to address a number of other, potentially time-sensitive issues, including biofuels tax credit extensions, estate tax action, and free trade agreements.

(ISSN0197-6680) Vol. 38 No. 34

August 23, 2010

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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

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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard Advertising Sales Manager

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Susan Moore, right, IAA Foundation director, chats with Ronda Roberts, Walmart marketing manager, about a $50,000 donation from the Walmart Foundation for Illinois Agriculture in the Classroom (IAITC) programs.

Looking on is Kevin Daugherty, IAITC education director. This was the Walmart Foundation’s second contribution to IAITC for ag literacy. (Photo by Ken Kashian)

Walmart gives $50,000 to IAITC

BY KAY SHIPMAN FarmWeek

Illinois Agriculture in the Classroom (IAITC) will expand its after-school ag literacy program with $50,000 from the Walmart Foundation.

Walmart executives presented Illinois Farm Bureau President Philip Nelson with the contribution during Agriculture Day festivities at the Illinois State Fair.

This was the second year of funding from the Walmart Foundation.

“Agriculture is important to our business,” Ronda Roberts, Walmart marketing manager, told FarmWeek. “About 70 percent of our produce comes from local producers.”

IAITC used Walmart’s initial donation to develop a nine-week after-school program, named After School Agriculture, for such enti-

ties, as Boys and Girls Clubs and YMCAs, which offer childcare and summer education programs.

Kevin Daugherty, director of education for IAITC, explained Walmart’s donation helped IAITC programs reach non-traditional students.

IAITC plans to expand the initial lessons based on farm-related ingredients used to make pizzas to explore locally grown foods, according to Daugherty.

“We’ll talk about how Illinois grows those (ag products),” he explained.

IAITC is the top funding priority of the IAA Foundation, IFB’s charitable foundation.

Funding from agribusiness and related industries, state government, commodity groups, and individual donors helps support the IAA Foundation’s efforts.

C-FAR announces staff, office changes The Illinois Council on Food and Agricultural Research (C-FAR) no longer will have staff or an office on the University of Illinois Urbana campus. Instead, the Illinois Crop Improvement Association in Champaign will provide support staff for the restructured C-FAR. On June 30, C-FAR members voted to revise the organization’s bylaws. As a result of that change and elimination of

state funding, C-FAR scaled back its day-to-day activities and restructured its operations.

Representatives of four sector caucuses: corn, soybean, pork-beef-dairy, and specialty crops-wheat-allied industries will meet Aug. 30 to elect new leadership.

Mary Auth of the Illinois Crop Improvement will serve as C-FAR program manager and oversee the sector caucus planning, ongoing correspon-

dence, and organization oversight.

Kraig Wagenecht, who had served as C-FAR executive administrator since 1997, will seek other opportunities.

Any correspondence to CFAR should be mailed to Mary Auth, Box 9013, Champaign, Ill., 61826-9013.

Her telephone number is 217-359-4053. The new CFAR e-mail address is cfar@ilcrop.com.

Farm Talk meetings slated around state Illinois Farm Bureau President Philip Nelson and IFB Vice President Rich Guebert Jr. will conduct regional Farm Talk meetings later this year throughout the state.

Dates, times, and locations are: • Monday, Aug. 30, 11 a.m., Effingham County, Joe Thoele far m, 13550 N. 2100 St., Teutopolis; 5:30 p.m., Williamson County, John A. Logan College, 700

Logan College Rd., Carter ville.

• Wednesday, Sept. 1, 11 a.m., Warren County, American Legion Post 136, 1110 N. 11th St., Monmouth; 5:30 p.m., LaSalle County, Pitstick Pavilion, 3401 N. State Rt. 23, Ottawa.

You may register by contacting your county Farm Bureau or the IFB president’s office at 1800-676-3217.

FarmWeek Page 3 Monday, August 23, 2010

STATE FAIR

State financial woes, budget cuts not forgotten on Ag Day

BY KAY SHIPMAN FarmWeek

State agriculture leaders celebrated Illinois agriculture and the Illinois Department of Agriculture (IDOA) on Ag Day last week at the Illinois State Fair, but warned progress could be jeopardized by continued state funding cuts.

“We have to be careful in budget cuts that we don’t cut essential services,” warned former Illinois Agriculture Director Becky Doyle.

Six former state ag directors addressed the crowd during the Ag Day luncheon and award ceremony on the director’s lawn on the fairgrounds.

It was the first time in recent memory that former ag directors gathered on Ag Day. Former Ag Director Larry Werries thanked current Ag Director Tom Jennings for inviting his predecessors.

“This is such a good idea that I’m amazed we didn’t think of it,” Werries joked.

But the seriousness of state

funding cuts to IDOA and agricultural education, research, and conservation programs were stressed by several former ag directors.

“We need an efficient and productive Illinois Department of Agriculture,” said former Ag Director John “Jack” Rundquist. “I’m concerned about the cuts to IDOA, 4-H, C-FAR (Illinois Council on Food and Agricultural Research), and FFA. We need to draw a line in the sand.”

Doyle said she learned about the breadth of services IDOA provides to the ag industry and consumers after she became state ag director.

“Those are important things,” Doyle noted.

The state’s agriculture industry continues to build on its resources, including its leaders and innovators, the former directors noted.

Although Werries said he was at first nervous about succeeding former Ag Director and Ag Secretary John Block,

Illinois Agriculture Director Tom Jennings, left, receives applause last week from his predecessors on Agriculture Day at the Illinois State Fair. Former state ag directors, shown left to right are Larry Werries, Chuck Hartke, Becky Doyle, Jack Rundquist, Gordon Ropp, and Joe Hampton. Former Ag Director John Block sent his greetings from Germany. It was the first gathering of former ag directors in recent memory. (Photo by Kay Shipman)

“I knew I could do the job because I had the power of Illinois agriculture behind me.”

“Thanks to the people who

Illinois State Fair visitors line up for a chance to milk a pretend cow in the Dairy Barn at the Farmer’s Little Helpers exhibit at the Illinois State Fair. The new interactive, educational farm exhibit drew crowds even on the hottest days of the fair. (Photo by Ken Kashian)

Fairgoers line up for Farmer’s Little Helpers Neither heat nor long lines discouraged young fairgoers and their families from visiting a new farm exhibit at the Illinois State Fairgrounds known as The Farmer’s Little Helpers.

Even during a sweltering weekend, lines of children and adults snaked through the “farm” buildings and a small grain bin. Young visitors completed hands-on activities at each stop and learned about Illinois agriculture.

Erica Filipiak, the exhibit supervisor and a fourth grade teacher, didn’t have an estimate of how many people had visited the site, but said she had received many good comments from visitors.

“The parents have provided great feedback.

They’ve said how cute it is and educational,” Filipiak said. “From looking at the kids, you can see they’re absolutely loving it.”

The exhibit was designed for children ages 3 to 10, but Filipiak said some visitors as young as

2 and as old as 12 were completing the activities.

Adult visitors without children also walked through the buildings and said they learned new information, she added.

In addition to non-farmers, the new exhibit also caught the attention of at least one notable farmer.

Former Illinois Agriculture Director Becky Doyle praised Farmer’s Little Helpers while addressing an Ag Day luncheon crowd. “It’s really well done. I think it will do a lot for agricultural education,” she said.

Filipiak thought of her own Springfield students as she looked over the youngsters moving through the exhibit and using the educational materials that had been donated by agricultural groups, including the Illinois Farm Bureau.

She said some local teachers have asked if the area and activities could be available for class field trips after the State Fair. — Kay Shipman

came ahead and set the course,” added former Ag Director Joe Hampton. “We’ve got a good thing going in Illinois.”

Former Ag Director Gordon Ropp surveyed the large crowd gathered on the director’s lawn, then concluded, “Illinois agriculture is not dead.”

IDOA isn’t the only agency dealing with state funding cuts.

Earlier in the day, Illinois Attorney General Lisa Madigan said she is doing her best to reduce her office’s reliance on taxpayer funding. Madigan noted her office had raised $1 billion each of the last two years — a majority of her budget — through such things as prosecution of Medicaid fraud cases.

However due to cuts, Madigan has reduced the number of lawyers and part-time staff in her office, the attorney general said.

These reductions are occur-

ring at the same time her staff has seen an increase in consumer fraud, according to Madigan. She has been focus-

Attorney General Lisa Madigan

ing on fraud that targets senior citizens.

“We want to make sure consumers don’t lose their hardearned money,” Madigan said.

FarmWeek Page 4 Monday, August 23, 2010

GOVERNMENT

Johnson: Revise ‘confiscatory’ estate tax Johnson nonetheless finds it “absolutely one of the most confiscatory, unfair, burdenU.S. Rep. Tim Johnson tires some, and counterproductive of hearing about what some taxes we have in our system.” on Capitol Hill call “the expiSangamon County ration of the Bush tax cuts.” farmer/attorney George Tin“What will happen next kham fears the burden a $1 year is a dramatic tax increase million exemption would place — don’t try to frame it any on his neighbors and clients. other way,” the Urbana “All you have to have is a Republican insisted last week. section of land Failing conand all of a gressional bang! action, the fed‘What will happen next year is a dra- sudden, — you’re over eral estate tax matic tax increase.’ that limit, and — which was you’re going to phased out this be losing some year under — U.S. Rep. Tim Johnson of the family 2001 tax legisUrbana Republican assets you and lation — your ancestors returns Jan. 1 worked very with a mere $1 hard putting together,” Tinmiddle-class taxpayers.” million individual exemption He favors outright “death tax” kham told FarmWeek. and a high 55 percent tax rate.

Tinkham himself owns elimination, but acknowledges The individual exemption prime Sangamon County grain “that’s not going to happen for a rose to $3.5 million in 2009 land. number of reasons,” including prior to the tax “sunsetting” “If this does go back to $1 the revenue it generates. this year. Senate Ag Commitmillion, estate planners, especially lawyers, will make a good amount of money telling people how to get into trusts and how to work around that.

“There are very valid, legal Federal officials must bust the current ethanol “blend wall,” not create two new ones, Illinois Corn Growers Association (ICGA) President Tim Lenz warned last week amid reports that a decision may be near on E12/E15.

Arguing Congress and the The U.S. Environmental Protection Agency (EPA) appears administration have displayed ready to approve raising the ethanol blend rate in conventional an increasingly “tone-deaf gasoline from 10 percent to 15 percent, Ag Secretary Tom Vilattitude toward agriculture,” sack said at the Iowa State Fair. EPA Administrator Lisa Jackson U.S. House Ag Committee has discussed E15 labeling, “an indication we’re going to have member Tim Johnson sounds it,” Vilsack said. a note of concern about The question is “what vehicles will it apply to,” he said. Conpotential 2012 ag spending. cerns that EPA may clear E15 FarmWeekNow.com During a Bloomington only for newer vehicles has You also can listen to an audio “town hall” meeting, the spurred Illinois corn, ethanol, repor t on the ethanol issue Urbana Republican cited severand retail fuel interests to ask from RFD Radio’s Matt Kaye at President Obama instead for al ongoing threats to producers.

FarmWeekNow.com. immediate E12 (12 percent Those ranged from proposed blend) approval.

U.S. Environmental Protection In an Aug. 16 letter to Obama, Illinois Farm Bureau, ICGA, Agency regulations and new the Illinois Renewable Fuels Association, GROWMARK, others health care policies to a lack of noted “no studies that indicate any significant problems with the funding for planned Upper use of E12 or E15.”

Mississippi-Illinois locks and But current EPA rules “actually allow gasoline blends confailure to act on the Colombia taining an oxygen content substantially equivalent to E12,“ they free trade agreement. stated.

Johnson said he was conWith ethanol production outpacing existing demand by 10 cerned producer direct paypercent, E12 would “give the industry a breather” and assure ments could be “yet another plant sustainability, Lenz told FarmWeek. He urged the agency not to hurt biofuels markets through a two-tiered E15 market, victim” of apathy toward agriespecially if E12 can be approved “with a stroke of the pen.” culture, amid “unbelievably dis“Don’t hurt the market by saying we can only use E15 in 2001 torted priorities” in current fedor newer models. eral spending and the search for “If (EPA’s) going to finally get down to all cars being able to dollars to fund them. use E15, let’s just wait for that. But let’s not wait for five years; “Our national debt now is we’re nine months past when they were supposed to have a rulbetween $13 trillion and $14 triling by law, anyway.” lion, and increasing every day,” Lenz was on hand last week as U.S. House Ag Committee member Deb Halvorson, a Crete Democrat, pushed for two-year he noted. “Our annual deficit is almost $1.6 trillion this year.” extension of a soon-to-expire ethanol blenders tax credit she Johnson sees “no chance” of sees as crucial to “renewables for the future.” funding for construction of five Halvorson blasted media, including the Chicago Tribune, which Mississippi and two Illinois Rivhave challenged justification for the 45-cent-per-gallon tax break and insisting “it’s not a waste of money.” er locks approved in 2007 “until “We have to invest in the first generation of ethanol so we we have a new administration.” can get to the second,” she told reporters in Ottawa. “We have The House Transportation to stop putting people in limbo. and Infrastructure Committee “That’s why I’ve sponsored a bill for two years’ (extension of recently passed water resourthe) tax credit — so there’s certainty in the industry, so they’ll ces legislation without includcontinue to invest.” — Martin Ross ing an Inland Waterways Capi-

BY MARTIN ROSS FarmWeek

tee Chairman Blanche Lincoln (D-Ark.) proposes a new $5 million individual/$10 million per-couple exemption with a 35 percent top rate.

At a recent public meeting in Bloomington, Johnson argued “one of the first priorities of a proactive, jobs-oriented Congress ought to be to expand targeted tax relief for

ways to do it. It’s just good business planning: Why wouldn’t you do something like that?”

One potentially effective strategy is to maximum annual gifting of assets to family members under an irrevocable

trust. But Tinkham noted some elder producers are reluctant to relinquish control of their operations, “and those people are really going to be hit by this thing if it rolls back.”

Ag groups, companies seek no-strings E12

Direct payments, locks potential ‘victims’? tal Development Plan proposed after a nearly two-year effort by a working group to address locks and other inland waterway needs.

The plan seeks $7.6 billion for a 20-year navigation invest-

ment program with average annual spending of $380 million. Annual investments would include $320 million for construction projects and $60 million for major rehabilitation. — Martin Ross

Farm bill Continued from page 1 restore food stamp spending. Even if House leadership should change with November’s elections, she believes prospective new chairman Frank Lucas (R-Okla.) would follow a similar philosophy.

Moving money from nutrition to farm programs would be impossible “with this kind of environment, this kind of Congress, and this kind of president,” Smith argued. However, a political shift should not necessarily reassure farmers, she said, questioning whether possible House Speaker John Boehner (R-Ohio) would be any friendlier toward farm programs than current Speaker Nancy Pelosi (D-Calif.).

Further complicating matters is pressure on marketing loan and countercyclical programs important to southern cotton growers but vulnerable under a recent World Trade Organization (WTO) ruling.

With the U.S. currently paying Brazil an annual $147 million to forestall trade retaliation under the ruling, Smith reports a large group of lawmakers are demanding full WTO compliance under the next farm bill.

At the same time, southern producers see little value in the average crop revenue election program (ACRE) or crop insurance. As a result, direct payments remain about the only national rallying point, she said.

During IFB’s August Marketers to Washington tour, a USDA representative suggested ACRE likely would be “revamped in some way” rather than eliminated, tour participant and Livingston County FPTF member Dennis Haab related. Given strong support in the South for direct payments, they should prove “really hard to get rid of,” the ag official told Haab.

Haab’s Kane County task force colleague Bob Gehrke noted that with farm programs comprising less than 0.5 of a percent of the U.S. budget, “We’re not going to solve the U.S. deficit by taking the programs away.”

FarmWeek Page 5 Monday, August 23, 2010

STATE

Illinois farm groups talk farmer image at State Fair On Ag Day at the Illinois State Fair, a coalition of farm organizations discussed new consumer research that confirms Illinois consumers care about who produces their food, but they are misinformed about the family farmers who really grow and raise the majority of food produced in the state.

Farm organizations in the Illinois Farmers Coalition include the Illinois Beef Association (IBA), Illinois Corn Marketing Board (ICMB), Illinois Farm Bureau (IFB), Illinois Pork Producers Association (IPPA), and Illinois Soybean Association (ISA).

Research projects conducted on the group’s behalf and supervised by Milwaukee-based marketing communications agency Morgan & Myers show a pervasive mistrust of farming practices that stems from consumer concerns about food safety and animal welfare on so-called “factory farms.”

While having trouble clearly defining “factory farms,” consumers uniformly feel such farms dominate Illinois agriculture.

In a statewide poll of more than 1,100 non-farm adults commissioned by the groups and conducted by GfK Roper, Illinois residents believe, on average, that 54 percent of Illinois farm products come from “corporate farms” vs. 46 percent from family farming. The most recent USDA statistics show that individual family farms and partnerships represent 94 percent of all Illinois farms.

“There has been somewhat of a disconnect, and we need to tell them (consumers) not only how we raise their food, but also how we care for animals,” said IFB President Philip Nelson. “We need to try to get a message that resonates with consumers.”

“The American family farm should be the most trusted food-producing enterprise in the world,” said Ron Moore, ISA chairman. “But our customers think the family farm is passing from the scene. Nothing could be further from the truth. We may have larger farms with less diversity, but we are still farming together as a family, and often on the same land as previous generations.”

“We know that the best people to tell the story of today’s agriculture are the people who raise the livestock and farm the ground day in and day out,” said Jeff Beasley, IBA vice president.

“We look forward to sharing the true story of farming and helping consumers get to know us in a way that they can connect with farmers and those who raise livestock,” said Beasley.

Seventy-one percent of consumers polled said they felt more positive about farming when told the facts about the percentage of family-operated farms in the state.

“We must look for every opportunity to engage in a meaningful dialogue with consumers and be a trusted source of information on questions about how our food is grown

Brent Scholl, president of the Illinois Pork Producers Association, discusses the importance of a farmer image campaign on Ag Day at the Illinois State Fair. Looking on behind Scholl are representatives of a farm organization coalition looking to improve the farmer image. Left to right, they are Illinois Farm Bureau President Philip Nelson, Donna Jeschke of the Illinois Corn Marketing Board, Illinois Soybean Association Chairman Ron Moore, and Illinois Beef Association Vice President Jeff Beasley. (Photo by Ken Kashian)

and raised,” said Brent Scholl, IPPA president.

“But the current misunderstanding of consumers toward farming is really quite widespread and creates substantial damage to their trust in farms and farming,” Scholl added.

For example, two-thirds of nonfarmers say they are not

knowledgeable about farming practices used on Illinois farms.

But two-thirds also say they are personally concerned about “lax regulations of corporate farms.” And an equal number are concerned about “the role of big business in farming.”

“Myths about food produc-

tion are today’s urban legends, invading our classrooms and churches,” said Donna Jeschke, immediate past-chairman of the ICMB. “It’s high time we in agriculture step back and consider the nonfarmer and why they’ve come to the conclusions they have.”

Illinois treasurer awards 10 agriculture scholarships State Treasurer Alexi Giannoulias last week awarded 10 scholarships to outstanding Illinois high school seniors on Agriculture Day at the Illinois State Fair.

Each recipient will receive a $2,000 Bright Start College Savings Program account.

More than 100 high school students applied for the scholarships.

Winners were selected based on their grades, community service, and essays about their commitment to agricultural studies and careers.

The 2010 Excellence in Agriculture Scholarship winners are: • Lauren Adcock, daughter of Bob and Sherry Adcock of Moweaqua.

• Jonathon Lee Brashear, son of Gary and Pam Bras-

hear of Weldon.

• Chase Michael Butler, son of Steve and Deanna Butler of Pekin.

• Joshua Ryan Clark, son of Stan and Lisa Clark of Lincoln.

• Ronald Thaddeus Dymerski Jr., son of Ronald and Darlene Dymerski of Beecher.

• Amelia Martens, daughter of Patrick and Annette Martens of Orion.

• Rodney Noe, son of Ralph and Janet Noe of East Peoria.

• Taylor Walk, daughter of Roger and Karen Walk of Neoga.

• Kelcie Woker, daughter of Craig and Jan Woker of Greenville.

• Doug Yunker, son of Mark and Heidi Yunker of Frankfort.

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FarmWeek Page 6 Monday, August 23, 2010

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Rainfall for the week ending Aug. 15 totaled 1.4 inches at our farm, but was more than 2 inches north of Rockford. Sudden death syndrome in soybeans has been showing up more and more each week. We have never had that disease this far north until this year, but it seems as if we have been having Central Illinois weather up here this year. Corn husks are starting to turn slightly brown and corn is ripening naturally, but there also are some leaf diseases showing up late in the growing season. It was fair week in Winnebago County last week, football practice has started, most schools are getting started, and harvest will be here soon.

Leroy Getz, Savanna, Carroll County: Rain on Friday, Aug. 13, totaled 1.2 inches at my farm and as much as 2.5 inches in some other areas.

Cooler days brought relief for livestock and humans. With 2,400 growing degree units, early corn has now reached the milk line about two-thirds of the way down the kernel. Yield potential is very good. Soybeans are tall with many pods, but sudden death syndrome is showing up in more fields. Some roads that were closed following the July 24 storm have been reopened, but repairs on others will take longer.

Ron Frieders, Waterman, DeKalb County: Crops are rapidly maturing. Early corn is turning brown, husks are loosening, and the ears are starting to drop. I am sure the cattle feeders will be chopping silage any day. Early varieties of soybeans have started to turn. They are very tall and have quite a few pods. There is a lot of disease in almost every field. Affected areas are scattered throughout and dying prematurely. Last year in the areas with disease, yields were cut in half. Let’s all think safety this harvest and every day.

Larry Hummel, Dixon, Lee County: The Lee County Extension’s Ag Marketing Club meeting had Elwynn Taylor, professor of ag meteorology at Iowa State University, provide a video conference presentation.

Taylor stated that we have moved into a La Nina weather pattern, and that should bring drier weather to the Midwest. That’s good news with harvest just around the corner. From reports I’m getting, I bet most of the other Cropwatchers will be talking about sudden death syndrome in the soybeans.

Now is a great time to scout for the disease. Pay attention to the differences in varieties, tillage practices, planting dates, and crop rotation.

Joe Zumwalt, Warsaw, Hancock County: Milder weather graced Western Illinois last week and it was greatly appreciated. The corn is on the fast track to dry down. I have heard of hand-shell tests of moistures in the upper 20s, but no one has begun harvest yet. I expect most will wait until after Labor Day. The soybeans have progressed nicely and the early beans have some excellent potential. The later-planted fields are still very small and the jury is still out as to their yield potential. I guess only a frost will tell, but it is hard to anticipate a frost when it is expected to be mid-90s. Everyone is busy finishing up cutting hay, mowing roadsides, chopping silage, and preparing equipment for for fall.

Ken Reinhardt, Seaton, Mercer County: I ended up with more than 2.5 inches of rain since the last report.

Sudden death is hitting more and more soybean fields. I saw one last night that will take a serious yield reduction. Corn is racing to maturity, and there will be some harvested before month’s end. Road paving projects and numerous grain system updates are still in progress.

Jacob Streitmatter, Princeville, Peoria County: It is interesting what two weeks can do to the corn and soybean crop. The corn is getting ripe very fast, and, unfortunately, the soybeans have a lot of sudden death in them. I have had very little rain since I have been home. While on vacation in Europe, Mary and I met up with Rock and Marla Katschnig in Courbes, France. There we had an excellent time with Herve and Christelle, who are French farmers. Rock and I learned a lot on the visit from Herve and his fellow farmers. We also were lucky enough to ride in his Class 570 Lexion combine while harvesting his beans. I had no report last week because the Internet server was down.

Wilfred Dittmer, Quincy, Adams County: Another nice summer Friday morning here with temperatures about 74 degrees and clear. But the days are getting shorter and August is flying by, which also explains why a lot of the early corn is sliding toward to maturity. The crop tours last week are still saying a lot of bushels. When the combines start rolling, we’ll learn where they are. Soybeans are coming along well and pod filling seems good on early beans.

Later beans are going to have to push as the growing season is winding down. And yes, we are still mowing as the grass just keeps growing. Be careful wherever you may be.

Mark Kerber, Chatsworth, Livingston County: Teachers and students are returning to school. Crops are ripening, and farmers are very busy getting machinery ready for harvest.

Corn will be drying down with this August heat. Some soybeans are just getting a hint of yellowing while most are still very green. Our local elevator has offered half-price drying on corn below 25 percent.

So far, only one producer has found corn this dry and it was 100-day corn. Installing cameras on auger carts, combines, and semis has been a help on visibility around this larger machinery. Another trend around here has been adding stalk stompers to corn heads to break over those tough Bt stalks, which saves on tire wear. Some are locking in next year’s input costs in case markets explode again to the upside.

Carrie Winkelmann, Menard County: We received 1.5 inches of rain on Friday, Aug. 13, and had a couple of spotty showers with no accumulation throughout last week. The corn is turning quickly and it sure smells like harvest time, although I do not expect to see combines out in our area until after Labor Day. The soybeans look excellent and I have seen no sudden death syndrome showing up as of yet.

Ron Haase, Gilman, Iroquois County: It was a dry week.

Local farmers have been attending plot tours and informational meetings along with preparing the machinery for harvest.

Almost all cornfields are in the dent stage with a few having moved on to R6 or physiological maturity. So the most advanced corn in development is now at black layer.

The driest hand sample I tested on Aug. 20 was at 24 percent moisture. Soybean fields are either in the R5 growth stage or R6, full seed stage. Sudden death syndrome has been advancing in local soybean fields. The local closing prices for Aug. 19 were $3.82 for nearby corn, $3.83 for new-crop corn, $10.12 for nearby soybeans, and $9.74 for new-crop soybeans.

Brian Schaumburg, Chenoa, McLean County: Annual meeting season is under way for co-ops and others. Crop size due to higher-than-ideal heat was a topic of concern. Harvest will start after Labor Day for most, but a few have tested the waters with varying results. We all owe former McLean County Extension Director Don Meyer a debt of gratitude for his years of dedicated service to agriculture. Join me in wishing Don a successful tenure at his new job at Illinois State University. Corn, $3.84, $3.87, fall; soybeans, $10.23, $9.67, fall; wheat, $6.06.

Steve Ayers, Champaign, Champaign County: USDA has our East-Central Illinois crop reporting district at 29 percent very short of moisture, 45 percent short, and 26 percent adequate. One of the driest areas is in Vermilion County from Hoopeston to Cissna Park. Area crop tours gave us a good look at the variability of conditions throughout the area. Topflight Grain tour Tuesday found a 173 bushels per acre (BPA) average with a range of 186 at Atwood to 156 just down Route 36 at Pierson. Premier Co-op’s tour Wednesday found a 184.94 bushel average with a range of 231 at St. Joseph to 154 at Gifford. Topflight was down 11 bushels from 2009 and Premier was down 9.5 from last year. For soybeans, Topflight found an average pod count of 44 with a range of 51 to 38 pods per plant. Seed corn harvest started during the weekend.

Some ears are dropping and bean fields are yellowing. Congratulations to State Fair winners Brandon Wyatt of Ogden for his grand champion steer, Roscoe, and Hannah Foster of Paxton for her grand champion poultry trio!

Tom Ritter, Blue Mound, Macon County: On Aug. 13 after filing my report, we were fortunate to have 1 inch of rain in Southern Macon County.

This definitely gave a big boost to the soybeans and some of the greener corn. Corn is coming on fast. We probably will see a few combines rolling in the next week and definitely more going by the week after. The dryness depends a lot upon nitrogen application, what form was used, as well as the timing. Corn with 28 percent nitrogen applied seemed to have a little more trouble with firing, probably because it moved out of the soil with the heavy rains in June. Soybeans will be a couple of months before they will be ready for harvest, but with these rains here in mid- to late August, it definitely should give them a boost or maintain some yields.

Temperatures have been hot for preparation of the coming harvest as well as getting roadsides mowed up one last time.

There are a lot of field days to attend to look at new products.

Todd Easton, Charleston, Coles County: The heat wave finally broke at the beginning of last week after some much-needed rains came through during the weekend of Aug. 14-15.

Unfortunately, the rain was varied across the county with the north half getting an inch and a half or more and southern parts barely getting a sprinkle. The soybean crop could still use a good rain to fill out the pods. The corn crop is now in the dry-down phase and producers are in a rush to get equipment ready for the early harvest. Over on the far west side of the county there were reports of a few combines going after wind-damaged cornfields and moisture tests that were in the low 20s in some fields. Hopefully, next report we will have some reliable yield reports to share and we can see how this crop dealt with this season’s challenges.

Jimmy Ayers, Rochester, Sangamon County: We had 1.9 inches of rain two weeks ago, but none since then. Corn seems to be drying out fast.

We’ve had reports of 20 percent moisture in hand-shelled corn. Others have reported 23 to 29 percent moisture on the corn. It seems to be standing pretty well. We are finding some disease scattered in different varieties. Beans have had a little bit of their shine taken off.

They are suffering a bit from the dry stretch we have had for two weeks. There were some guys who mowed hay and actually got a little bit of rain on it. Haven’t heard much on yield checks or pod counts on any of the beans, and I haven’t been out myself. A lot of guys are eager and ready to go. We need to think safety and what we can we do to make it safe for the farming community.

Page 7 Monday, August 23, 2010 FarmWeek

CROPWATCHERS David Schaal, St. Peter, Fayette County: It was another pretty hot week here, though not nearly as hot as the last two. In this neck of the woods, we still need rain. On the early morning of Aug. 14, we received between 0.2 and 0.3 of an inch while other parts to the west and north of the county were blessed with 2 to 3 inches. An inch or two of rain could double our soybean yield potential. Farmers out in some of the cornfields taking hand samples are finding they are 25-35 percent moisture.

We’re sure hoping for a nice rain.

Bob Biehl, Belleville, St. Clair County: The day after our last report, our area received a more generalized rain of about 1 inch. That rain and cooler temperatures have carried us through much of the week in good shape. Corn dry-down has slowed a bit and beans look much better. Many of the beans came back after the previous week’s wind, so that should help pod fill in those fields. Still lots of activity around the farm because once harvest starts, that will be the main focus.

Prices at river terminals are: new corn, $4.14; January corn, $4.42; new beans, $10.20; January beans, $10.54; cash wheat, $6.13, which is down from a one-day high of $7.04.

Dan Meinhart, Montrose, Jasper County: It was a mostly dry, hot week with very isolated areas receiving showers. The May- and June-planted corn and all the beans desperately need rain. A lot of silage has been made. Some fungicides and insecticides have been applied on beans. Farmers are spending their time hauling grain, mowing road ditches and waterways, repairing equipment, and baling hay.

Rick Corners, Centralia, Jefferson County: Another week without rain. Bean harvest is going on 12 hours a day, 98 degrees at a time.

Kevin Raber, Browns, Wabash County: The temperature cooled a little this past week, but we are still dry. The dry areas in the soybean fields are expanding out larger every day. This dry spell has to be taking soybeans down every day. Most people are talking about starting corn harvest after Labor Day.

Reports received Friday morning.

Expanded crop information available at FarmWeekNow.com

Dean Shields, Murphysboro, Jackson County: Last week brought us a few showers here and there but not everybody got rain. What rain did fall was not very much in some places. We are still needing the rain to help fill these beans out. It’s getting kind of dry in spots. A couple of guys just started picking corn and its drier than expected right now, mainly because it’s burning up. Yields were way down compared to last year. That’s a bit disappointing. Beans and milo are still growing pretty well. Everybody is getting ready for harvest. One note: It looks like we are going to have a good peach and apple crop this year. We actually have quite a few vineyards here in the county, too, and the grape crop looks good. Come to Jackson County and try our wine. Everybody have a safe harvest.

Ken Taake, Ullin, Pulaski County: Another hot and dry week here in Southern Illinois. Corn harvest is just starting and a few people are in the field. I’ve heard of moistures as low as 15 percent on some of the hills. We haven’t really started yet. We probably will try some corn this week. I haven’t heard anything of yields yet. I’ll have some more information by next week. Soybeans are really struggling with the hot and dry conditions. They are trying to fill pods. Looks like soybean yields are going to be way down this year. I’m thinking maybe half a crop. I guess time will tell. Please try to stay cool in this summertime weather.

Hottest year ever?

Meteorologist: Above-average temps through October

BY DANIEL GRANT FarmWeek

Crop dr y-down this fall should not be nearly the issue it was last harvest, based on a recent forecast.

Justin Povick, meteorologist with AccuWeather.com, last week predicted temperatures will remain above normal through October.

“Through October we’re on pace to see one of the

war mest years on record,” Povick told FarmWeek.

AccuWeather.com last week repor ted the first seven m o n t h s o f 2 0 1 0 we r e t h e warmest on the globe since modern climate records began in 1880.

All-time national record high temperatures were reached during July in Finland, Belarus, and the Ukraine due t o t h e s t r e n g t h o f s e ve r e

European heat waves.

In Moscow, Russia, the mercury recently reached an all-time high of nearly 101 degrees. A widespread drought there prompted the Russian Agriculture Ministry last week to project a 23 percent drop in grain yields.

“The heat definitely has been widespread across the globe,” Povick said.

Povick pointed to a quick

transition from El Nino (war ming of the ocean waters) to La Nina (cooling of the waters) conditions in the Pa c i f i c O c e a n a l o n g w i t h large areas of dryness as contributors to extreme heat this year.

Mother Nature could reverse the thermostat rather quickly the final two months of the year, based on past La Nina seasons.

“In November there could be a harsh change,” Povick s a i d . Fr o m a t e m p e r a t u r e standpoint “we could dive directly into winter.”

In the U.S., he predicted precipitation this fall could be below normal in the south and possibly near-normal in the Upper Midwest, with Illinois in the transition area of the contradicting precipitation patterns.

Got resistant waterhemp? Chances are it will get worse

BY KAY SHIPMAN FarmWeek

Patrick Tranel, University of Illinois crop science professor, last week offered farmers pretty good odds that if they have problems with resistant waterhemp, their troubles likely will get worse.

“If you have glyphosateresistant waterhemp, you have a 50-50 chance that nothing

FarmWeekNow.com Learn more about herbicideresistant waterhemp at FarmWeekNow.com.

else will work (as a herbicide),” Tranel reported at U of I’s Agronomy Day on the U of I Urbana research farm.

Tranel’s report was one of 21 field tour presentations on the latest field studies and crop research at the 54th A g r o n o m y D a y. A n o t h e r dozen studies and exhibits were offered in a display tent.

U of I researchers targeted fields with suspected resistant waterhemp and found 55 per-

cent of those fields had glyphosate-resistant waterhemp.

To a d d i n s u l t t o i n j u r y glyphosate-resistant waterhemp in four out of 10 fields also found to be resistant to other herbicides, Tranel noted, pointing to a diag ram that depicts potential herbicide resistance.

“We will continue to see new cases (of herbicide resistance),” Tranel added.

A new case of resistance was discovered in a McLean County continuous seed corn field in July, reported Aaron Hager, U of I weed scientist.

Waterhemp in the field is resistant to hydroxyphenyl pyruvate dioxygenase (HPPD) – inhibiting herbicides.

“We need to think integrated (weed) control strategy,” H a g e r a d v i s e d f a r m e r s.

“Stacked (herbicide) resistance is the reality.”

Asked about other herbicide-resistant weeds, Tranel reported glyphosate resistance is common in horseweeds. He said he also had heard glyphosate-resistant ragweed

University of Illinois weed scientist Patrick Tranel reports farmers have a 50-50 chance of having waterhemp that will be resistant to several herbicides if the weed also is resistant to glyphosate. Tranel was among the researchers who talked about pesticide-resistant pests during U of I Agronomy Day presentations on the Urbana campus last week. (Photo by Kay Shipman)

had been found in Southern Illinois, but he didn’t have any details.

Farmers who suspect they have herbicide-resistant water-

hemp in their fields may have the weeds tested by the U of I crop sciences depar tment, according to Tranel.

For information on how to

submit weed samples, contact your local U of I Extension office or go online to {http://bulletin.ipm.illinois.ed u/article.php?id=1394}.

FarmWeek Page 8 Monday, August 23, 2010

TRADE

Cuba and Illinois agriculture seen as ‘great fit’

BY MARTIN ROSS FarmWeek

Cuba and Illinois are “a great fit” and U.S. House Ag Committee member Deb Halvorson, a Crete Democrat, hopes Congress soon can bring them closer together.

Halvorson joined Illinois Farm Bureau and state corn and soy industry representatives last week in Ottawa to promote a recently committee-passed measure that would ease travel and trade restrictions between the U.S. and Cuba.

According to the lawmaker, travel reforms would enable ag interests to seek market opportunities on the island and “provide certainty to our farmers” by allowing commodity title transfer in Cuba rather than at ports of departure. The bill also would eliminate the need for third-country financing of U.S. sales.

Further, Halvorson told farmers “Cuba’s leading imports are Illinois’

leading exports,” envisioning expanded corn and soybean markets.

“If it benefits anybody, it will benefit Illinois,” Illinois Corn Growers Association President Tim Lenz agreed.

Illinois has sold more than $40 million worth of corn to Cuba during the 20092010 season, and Halvorson believes sales should “grow rather significantly” with trade liberalization.

She nonetheless noted the measure, which cleared the ag panel by a tight 25-20 margin, “took a long time to get out of committee.”

She sees challenges ahead on the House and Senate floors, especially among diehard Cuban-American opponents from largely Florida districts, but suggested “the next generation of (Cuban-American) Floridians” is not as adamant about resisting travel and trade with Castro’s Cuba.

“We in the Midwest are adamant about doing something about exports,”

Halvorson told FarmWeek. “The president has stated he wants to double exports in the next five years. If we’re even going to come close, this is the place to start.”

Lenz sees Illinois as primed to capitalize on Cuban market potential, being “blessed with the best river infrastructure system of any state” and the ability to ship easily into the Caribbean.

More than a third of the added corn and beans moving to Cuba as a result of trade reforms would come from Illinois, he projected.

Halvorson acknowledged her colleague’s concerns that “whatever we do does not only prop up the Castro regime, which seems to own the tourism industry.” But LaSalle County corn grower Ken Beck challenged decades-old political objections to opening relations with the Communist nation.

“Who owns most of our debt right

Illinois Farm Bureau board member Scott Halpin, Gardner, discusses Cuban trade with U.S. Rep. Deb Halvorson, a Crete Democrat. Halvorson’s House Ag Committee recently approved a measure that would liberalize travel and trade between the U.S. and the long-sanctioned island nation. (Photo by Martin Ross)

now in this country?” Beck posed, noting U.S. financial obligations to China.

U.S. Chamber, Korean envoy pitch FTAs to Illinoisans In recessionary times, trade is a hard sell. The U.S. Chamber of Commerce nonetheless made a statewide pitch last week for pending free trade agreements (FTAs) and their impact on 380,000 U.S. jobs.

The Chamber’s Trade Roots program director Liz Reilly stumped for congressional approval of South Korea, Colombia, and Panama FTAs in a sweep of businesses and leaders in Peoria, Naperville, Schaumburg, Elk Grove, and Aurora.

The Elk Grove “Trade Means Job” session included Illinois Farm Bureau and U.S. Commerce Department representatives and Wheaton Republican Rep. Peter Roskam, a leader of Congress’ Korea Working Group.

As President Obama prepares for a November meeting with South Korea President Lee Myung-Bak in Seoul, the bipartisan working group is working to drum up free trade support on the Hill.

Korean Ambassador Han Duk-soo conferred with Chicago Mayor Richard Daley during one stop. Meeting with skeptical U.S. automakers in Michigan, Han deemed the Korea FTA “one of the best opportunities to create U.S. jobs by providing new export opportunities for American manufacturers, farmers, and small and medium-sized companies.”

Obama has asked federal officials and policymakers to “smooth out” auto, beef, and other FTA issues prior to his trip to Seoul, “so he can have an agreement he feels comfortable with,” Reilly told FarmWeek. But she stressed current FTAs focus on reducing or eliminating existing tariffs on U.S. imports, rather than easing U.S. duties on incoming products.

“There are still some small discussions about beef and about auto, but I am confident it will be worked out by the time he goes to Seoul,” Reilly said.

“Our stance on all these agreements — not just Korea, but also Colombia and Panama — is that this is a win-win. These are no-brainer agreements.

“They’re an absolute no-cost stimulus for the economy and a job creator, as well. We released a study in May that concluded that with these agreements not moving anywhere, we’re losing the equivalent of 380,000 jobs. That’s a matter of goods that aren’t being exported because of these tariffs, business deals that aren’t being made because of tariffs.”

Reilly recognized the trade “protectionist” instinct of some lawmakers and labor interests but argued FTA approval is about “getting the U.S. into these countries before other countries get in.” That’s a “rapid race we’re not winning,” she said, citing Canadian and European agreements with Korea and Taiwan’s newly signed deal with China.

She sees the “ag component” as particularly important in U.S. trade growth, particularly in the case of Korea, which would zero out its corn duties immediately under the FTA. U.S. soy sales to Korea have drooped since 1999. Illinois Soybean Association (ISA) legislation/special projects director Mike Levin sees FTAs boosting bean and meal sales in Asia, Latin America, and even stateside, in the form of higher feed demand for export-destined livestock or meat.

Levin said the Panama FTA could build on the U.S.’ existing Central American trade agreement, and noted ISA and others are working with Korean leaders to recover U.S. market share. As Obama prepares for Seoul, Levin advised him to realize “the important role the farmer plays in our economy.”

“In the Midwest, we have the best soil arguably in the world,” he said. “We need to do whatever we can to increase that industry, knowing full well we’re here to feed the world, to provide inexpensive protein to various countries.” — Martin Ross

FarmWeek Page 9 Monday, August 23, 2010

TRADE

Outlook for meat exports bright despite new tariffs

BY DANIEL GRANT FarmWeek

The U.S. is on pace this year to export more beef and pork than it did in 2009.

Beef export volume (1.09 billion pounds) the first half of this year was up 14 percent compared to the same time a year ago, while pork exports (2.1 billion pounds) were up 3 percent in volume, the U.S. Meat Philip Seng Export Federation (USMEF) reported.

And the value of those exports ($2.32 billion for pork and $1.83 billion for beef) posted even greater gains (10 and 22 percent, respectively) than a year ago due to higher meat prices.

Philip Seng, president of USMEF, believes the trend of increased meat exports will continue.

However, he is concerned about market access issues in various countries as well as new tariffs that will be applied to U.S. pork products in Mexico.

Mexico is the secondlargest market for U.S. pork and which last year imported $419 million worth of pork, last week announced it will assess a 5 percent tariff on hams and shoulders as part of a retaliatory move for the U.S. not meeting North American Free Trade Agreement (NAFTA) requirements.

The U.S. early in 2009 canceled a program that would have allowed Mexican truckers to operate north of the border, resulting in a NAFTA dispute-settlement panel ruling Mexico could retaliate.

“Mexico’s retaliation against U.S. pork will have negative economic consequences for America’s pork producers,” said Sam Carney, president of the National Pork Producers Council. And “it could prompt other countries to think twice about entering into trade deals with the United States.”

Seng noted pork from Canada was cheaper than U.S. pork prior to the tariff due to higher prices in the U.S. and the exchange rate.

“A 5 percent increase in duty is significant,” he told

U.S. crop exports boost could be sign of future USDA this month made some serious upward revisions to its crop export projections.

U.S. wheat exports were projected to increase 200 million bushels and corn exports were forecast to jump 100 million bushels due in large part to the drought in Russia and its decision to ban grain exports for the rest of this year.

“Tighter foreign supplies of wheat and coarse grains raise prospects for U.S. corn shipments,” USDA noted.

Meanwhile, U.S. soybean exports were raised 65 million bushels to a total of 1.435 billion bushels due to stronger demand from China and reduced stocks in South America.

The boost in export demand supported crop prices that otherwise may have tumbled earlier this month when USDA also projected record corn and soybean production this year in the U.S. And the trend toward higher outside sales could continue if the National Export Initiative, unveiled by President Obama earlier this year, is successful.

The initiative set a goal of doubling U.S. exports in the next five years.

“We think agriculture can contribute significantly to

achieve that goal,” Christine Turner, senior adviser for the USDA Foreign Ag Service, told FarmWeek.

USDA in June projected U.S. agriculture in 2010 will generate a surplus of $28 billion compared to $23.2 billion in 2009.

The U.S. previously doubled its ag exports from 2000 to 2010.

Two keys to doubling U.S. ag exports revolve around trade agreements and a growing middle class in Asia and other parts of the world.

Turner said it is critical for the U.S. to enforce existing trade agreements and to ratify pending agreements with countries such as Colombia, Panama, and South Korea.

Meanwhile, a growing middle class around the world is expected to increase demand for high-protein diets, which will increase demand for feed grains produced in the U.S., Turner said.

China recently overtook Japan as the second-largest economy in the world behind the U.S. And, with its expanding economy, China’s demand for corn reportedly is increasing by nearly 200 million bushels per year. — Daniel Grant

FarmWeek. “It makes us less competitive.”

Japan could make up some of the difference if U.S. pork sales to Mexico slip. Japan’s pork production has decreased by about 2 percent due to foot-and-mouth disease.

Meanwhile, a pending free trade agreement (FTA) with South Korea, if implemented, could be worth $10 per head to U.S. pork producers.

“There may be an opportu-

nity to increase (sales) in Japan,” Seng said. “In the Korean market, an FTA would be very significant.”

Elsewhere, USMEF still is working on regaining full market access for U.S. beef in markets that were closed in 2003 due to the discovery of BSE in a U.S. cow.

“We’re pretty optimistic about beef exports,” Seng said. “But there still are some major challenges in terms of (market) access.”

Overall, Seng said the export market has become even more valuable to U.S. livestock producers due to softening domestic demand.

Per capita meat consumption in the U.S. the past three years slipped from about 225 pounds to 208 pounds, Seng said.

“We see tremendous market opportunities (outside the U.S.),” he added. “We just have to be positioned to take advantage of them.”

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FarmWeek Page 10 Monday, August 23, 2010

FB IN ACTION MAKING CONNECTIONS

State Rep. Fred Crespo (D-Streamwood), right, chats with Hancock County Farm Bureau Women’s Committee members during their recent visit to his suburban district. Left to right are Martha Zumwalt, county Farm Bureau manager Carla Mudd, Doris Lionberger, and Rachel DeSotel. The group was joined by Women’s Committee Chairman Carol Jerred and Cook County Farm Bureau representatives Bona Heinsohn and Jesse Nosbaum. They discussed the state budget, property taxes, animal care issues, river concerns, and other issues with their “adopted legislator.” Crespo said he learned a great deal and hopes to visit Hancock County next year. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)

Lee County Farm Bureau member Adam Henkel describes his family’s farming operation to visitors at the Farm Bureau’s 16th annual Farm Visit Day. (Photo courtesy of Lee County Farm Bureau)

Many conservation practices on display at Farm Visit Day

BY DANELLE DESMITH

More than 250 visitors from throughout Illinois attended the Lee County Farm Bureau’s recent 16th annual Farm Visit Day. They received a guided tour of Henkel Farms Inc., a family farm operated by Jerry, Greg, Fran, and Adam Henkel.

The visitors saw farm equipment and learned about advancements in farming technology first hand as well as the various conservation efforts the family has implemented on the farm.

Farm Visit Day provided an opportunity to highlight things the family has done to preserve the land for future generations.

Many in attendance were not from a farming background and appreciated the opportunity to speak to local farmers first hand.

Danelle DeSmith is manager of Lee County Farm Bureau. She can be reached at 815-857-3531.

IFB Action Teams volunteers sought Illinois Farm Bureau is looking for volunteers for IFB’s Action Teams.

Each team consists of 10 to 15 volunteers who develop proposed activities for the organization. Action Teams are open to voting and associate members.

Members may choose from four teams: Quality of Life, which deals with farmer health and safety; Public Relations, which deals with the farmer’s image; Membership, which promotes the benefits of joining IFB; and Education, which focuses on the adult non-farmer.

Twice a year, Action Team members develop a plan for one or two statewide projects. The proposals then are presented to the IFB board for its approval.

Action Team members serve two-year terms with a twoterm limit on the same team (four years total). IFB reimburses meeting expenses, including mileage, lodging, and meals.

To apply, visit your county Farm Bureau for an application form and return it by Dec. 10. The signature of your county Farm Bureau president is required.

FarmWeek Page 11 Monday, August 23, 2010

Your corn ethanol isn’t good enough.

Extremists accuse you of poisoning the water.

The EPA thinks you make too much dust.

Besides, you’re not really a family farmer anyway, right?

in DC Metro Stations

in print and electronic Congressional publications

in Washington Reagan International Airport

We went to Washington, DC this summer in an unprecedented educational campaign where positive messages about farmers were

seen and heard more than 100 million times.

Illinois corn checkoff monies led this initiative.

For more information about this specific ad campaign,

For more information about Illinois corn checkoff programs,

www.CornFarmersCoalition.org

www.ilcorn.org

FarmWeek Page 12 Monday, August 23, 2010

GROWMARK

GROWMARK: a successful merger of necessity Editor’s note: The 30th annual meeting of the entity known as GROWMARK Inc., will be Aug. 26 and 27 at the Hilton in downtown Chicago.

The annual meeting, however, will be the organization’s 83rd.

What began as Illinois Farm Supply became FS Services Inc., then GROWMARK Inc. in 1980.

BY KAREN JONES

There are times when it makes more sense to merge two companies than to try keeping each company profitable on its own. That was the case 30 years ago when two cooperatives — FS Services Inc., and Illinois Grain Corp. — combined to form what is now GROWMARK Inc. During the 1970s, the two entities operated under a “combination of efforts� agreement.

Yet as the groups collaborated further, it became clear a merger

was the best decision for both organizations. “We tried many ways to keep the Illinois Grain Corp. profitable,� said Melvin Sims, chairman of the board and president from 19591980. “It was very difficult for me to have to report several years of losses, because I knew there was great potential. There was a lot of grain that had to be marketed somewhere.�

Dan Kelley, GROWMARK chairman of the board and president since 2000, said that by combining the businesses, the new entity could capitalize on the strengths of the two separate companies. “GROWMARK leverages the best of what FS Services and Illinois Grain brought to the table

— reliability, market presence, and marketing capability — for the benefit of all involved, “ he said.

When the merger was finalized in 1980, the newly formed cooperative was still nameless. The name GROWMARK combined elements of both entities. “The GROW stands for growing, which is what FS Services specialized in,� said

Glenn Webb, chairman of the board and president from 1980-2000. “Illinois Grain supplied the marketing, which is represented by the MARK.�

Although there were some minor “growing pains,� GROWMARK members from the beginning understood the benefits of bringing the two together. “Over the past 30 years, GROWMARK has continued to work to improve the long-term profitability of our member owners,� Kelley said.

“That’s our mission statement, but it is also the focus of everything GROWMARK does.

Our local FS member cooperatives are the companies that supply the products and grain marketing services to farmers. We want our members to be successful so they can continue to meet the needs of their farmercustomers.�

Karen Jones is GROWMARK’s publications and news specialist. Her email address is kjones@growmark.com.

MID-CO celebrates 30 years of business

BY CASSIE BECKER

Since its inception in 1980, MID-CO Commodities Inc. has provided risk management services and commodity consulting and brokerage for grain elevators and farmers.

Over the years, MID-CO has

witnessed many changes in the agriculture industry. “The Reagan farm bill, the Gulf Wars, and the Great Drought of 1988 were all major points in history for MID-CO, but they also personally resonated with me,� said John Cripe,

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MID-CO director. â&#x20AC;&#x153;We see our role as consulting, researching, and providing hedging expertise; all of these things fit a niche market that will always be needed,â&#x20AC;? Cripe said.

When MID-CO was formed, its goal was to be profitable and provide a high level of service to its customers. â&#x20AC;&#x153;The biggest change has been and always will be automation and technological advancements. However, MID-CO will continue to do the same job, just a little differently over time,â&#x20AC;? said Davis Anderson, GROWMARK vice president of grain and former MID-CO manager. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re currently working to develop a one- to three-year plan for expansion, I think that the best is yet to come for MIDCO,â&#x20AC;? Cripe said.

Cassie Becker is an intern with GROWMARK corporate communications and marketing services.

County FB entries sought for AFBF The American Farm Bureau Federation (AFBF) is accepting applications from county Farm Bureaus for its 2011 County Activities of Excellence program.

The program recognizes successful county Farm Bureau activities that help education the public about agriculture, address farm safety, attract new members to Farm Bureau, or get members involved in lobbying for your elected officials.

Fifteen county Farm Bureaus across the nation will be selected to display information about their programs at the AFBF convention Jan. 9-12, 2011, in Atlanta, Ga. Entries should be sent to the attention of Peggy Romba, program manager in the IFB member services and public relations division, by Sept. 3. Counties selected to display their activities at the AFBF annual convention will receive $2,250 toward their expenses.

For more information, contact Romba at 309-557-2007 or e-mail her at promba@ilfb.org.

FarmWeek Page 13 Monday, August 23, 2010

FROM THE COUNTIES

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OND â&#x20AC;&#x201D; Farm Bureau will sponsor the annual county crop survey beginning at 8:30 a.m. Thursday, Sept. 2, at the Farm Bureau office.

Teams will consist of farmers, radio and print media, and bank and agribusiness personnel. Call the Farm Bureau office at 618-664-3100 if you would like to participate.

HAMPAIGN â&#x20AC;&#x201D; Farm Bureau will sponsor a legislative reception from 4:30 to 6:30 p.m. Thursday at the Farm Bureau office. State elected officials, county board members, and Farm Bureauâ&#x20AC;&#x2122;s adopted legislator have been invited. Friend of Agriculture awards will be presented. Call the Farm Bureau office for more information.

EWITT â&#x20AC;&#x201D; The annual meeting will be at 6 p.m. Monday, Aug. 30, at Clinton High School. Julie Root, RFD Illinois radio personality, will be the speaker.

An auction benefiting the DeWitt Farm Bureau Foundation will be held. Tickets are $5 and are available at the office or from a director.

FFINGHAM â&#x20AC;&#x201D; A farm talk meeting with Illinois Farm Bureau President Philip Nelson and Vice President Rich Guebert Jr. will be at 11 a.m. Monday, Aug. 30, at the Joseph Thoele farm, 13550 N 2100 St., Teutopolis. Call the Farm Bureau office at 217-342-2103 by Tuesday for reservations or more information.

AYETTE â&#x20AC;&#x201D; Farm Bureau will sponsor the annual county crop survey at 8:30 a.m. Tuesday, Aug. 31, beginning with breakfast at the Vandalia Country Club.

Teams will consist of farmers, radio and print media, and bank and agribusiness personnel. Following the survey, a steak cookout will be at 6:30 p.m. at the Farm Bureau office. Tickets are $5 and are available at the Farm Bureau office or from a Farm Bureau director. Call the Farm Bureau office at 283-3276 if you would like to participate.

ENRY â&#x20AC;&#x201D; The Legislative Committee will sponsor a â&#x20AC;&#x153;Meet the Candidatesâ&#x20AC;? forum at 7 p.m.

Wednesday at the Geneseo Community Center. Candidates from the 14th and 17th Illinois Congressional Districts have been invited. Barb Link, Henry County clerk, will have voter registration materials available. Call the Farm Bureau office at 309-937-2411 for more information.

ANKAKEE â&#x20AC;&#x201D; Farm Bureau and the Kankakee Regional Chamber of Commerce will sponsor the annual legislative reception from 5:30 to 7:30 p.m. Tues-

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day at the Kankakee Country Club. A buffet dinner will be served. Cost is $30 for Farm Bureau members and $60 for non-members. A Mark Twain impersonator will provide the entertainment. Call the Farm Bureau office at 815-932-7471 for reservations or more information.

AWRENCE â&#x20AC;&#x201D; Farm Bureau will sponsor a legislative dinner at 6 p.m.

Tuesday at Lanterman Park, Bridgeport. State Rep. Roger Eddy (R-Hutsonville), state Sen. Dale Righter (R-Mattoon), and representatives from the offices of U.S. Reps.

John Shimkus (R-Collinsville) and Tim Johnson (R-Urbana) will attend. Call the Farm Bureau office at 618-943-2610 by today (Monday) for reservations or more information.

IATT â&#x20AC;&#x201D; Farm Bureau and Topflight Grain will sponsor an on-the-road transportation meeting at 8 a.m. Thursday at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau, will be the speaker. Call the Farm Bureau office for reservations or more information. â&#x20AC;˘ Farm Bureau will sponsor a wind energy contract information meeting for landowners and farmers at 6:30 p.m.

Wednesday, Sept. 1, at Judyâ&#x20AC;&#x2122;s Kitchen, Cerro Gordo. A light dinner will be served.

Call the Farm Bureau office for reservations or more information. â&#x20AC;˘ The Womenâ&#x20AC;&#x2122;s Committee is compiling a Piatt County Farm Bureau cookbook. Submit your recipes to the Farm Bureau office, PO Box 223, Monticello, Ill., 61856, or email them to piattfb@piattfs.com.

OCK ISLAND â&#x20AC;&#x201D; The annual meeting will be at 5:30 p.m. Thursday at the Milan Community Center. A pork chop dinner will be served. Cost is $15 for members and $21 for nonmembers. Children 4 and under are free. Breakout sessions with Nic Anderson, Illinois Livestock Development Group, and Jim Johansen, Wesley Acres, will be held.

Call the Farm Bureau office at 309-736-7432 for reservations or more information. â&#x20AC;˘ A Property Tax Assessment 101 meeting will be offered from 11:30 a.m. to 1 p.m. and from 5:30 to 7 p.m.

Tuesday, Sept. 14, at the Farm Bureau office. Brenda Matherly, Illinois Farm Bureau assistant director of local government, will be the speaker. Call the Farm Bureau office by Monday, Sept. 13, for reservations or more information.

ANGAMON â&#x20AC;&#x201D; An open house will be held

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from 6 to 8 p.m. Tuesday, Aug. 31, at the new Farm Bureau office, 2631 Beechler Court, Springfield. Members of the General Assembly and Congress representing Sangamon County have been invited to attend. Call the Farm

Bureau office at 753-5200 for more information.

OODFORD â&#x20AC;&#x201D; The annual appreciation dinner will be from 4 to 6:30 p.m. Tuesday at the Farm Bureau Park. Call the Farm Bureau office at 457-2347 for reserva-

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tions or more information. â&#x20AC;&#x153;From the countiesâ&#x20AC;? 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.

AGRI-QUIZ BOWL

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Stephenson Countyâ&#x20AC;&#x2122;s championship team in the Agri-Quiz Bowl at the Illinois State Fair last week, shown in foreground, consisted of Deb Bremmer, right, Chad Bremmer, both of Pearl City; Coe Kempel of Lena; and Abe Trone of Stockton. The second-place team was Knox County No. 1, followed by Champaign County No. 1, and Montgomery County No. 1. Thirty-four teams competed in the event this year. Team members were quizzed on their knowledge of ag safety, management, mechanics, animal science, current events, and several other categories. (Photo by Ken Kashian)

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FarmWeek Page 14 Monday, August 23, 2010

PROFITABILITY

The unnaturally low price of natural gas

BY JACKIE MCKINNIS

Natural gas prices have bounced up from the recessionary lows made in 2009 but remain cheap in comparison to crude and other petroleum products.

Pricing typically is influenced by Jackie McKinnis weather conditions and Gulf of Mexico storm forecasts.

We had an unseasonably warm spring, but deviations from normal this summer haven’t been sufficient or widespread enough to spur much buying interest. The 2010 storm season has been lackluster compared to early forecasts, but we have plenty of time left to see a hurricane rally.

Unforeseen factors also have contributed to the price decline — namely technology advances and the recession.

High prices in 2005 drove significant investments in stateof-the-art hydraulic fracturing and horizontal drilling techniques that made the removal of natural gas from shale formations possible and dramatically improved production efficiencies.

These large capital investments required that production continue, even when the recession hit and demand was weakened.

The weakened economy has taken a toll in the commercial and industrial sectors. Appliance efficiency gains and

improved housing construction have resulted in a significant decrease in the volume of gas used by households in the United States.

But this decrease has been largely replaced by the surge

BY DANIEL GRANT FarmWeek

Many banks in the U.S. offer similar products, according to Ken Elmore, president and chairman of the board of First National Bank in Litchfield.

So what’s the difference between a bank such as the First National Bank, which this year is celebrating its 150th year in business, and many of the 110 banks that have failed nationwide so far this year?

Elmore, a Montgomery County Farm Bureau member, believes service is a key to success.

“Banking is still a people business,” Elmore told FarmWeek. “It (success) boils down to service.”

Feeder pig prices reported to USDA*

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $37.03-$41.00 $39.14 $50.00-$56.56 $54.42 n/a n/a This Week Last Week 12,915 24,367 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $79.29 $77.09 $58.67 $57.05

Change 2.20 1.63

USDA five-state area slaughter cattle price Steers Heifers

This week $99.82 $99.85

tuations in risk sentiment that have been driving crude oil values up.

In some areas, natural gasfired generation has become cheaper than coal-fired power generation. With production increasing from shale and sand formations, storms in the Gulf of Mexico could become less of a factor in pricing and supply disruption.

With more pipeline infrastructure being built, the future of natural gas is looking unnaturally bright.

Jackie McKinnis is GROWMARK’s energy analyst. Her email address is jmckinnis@growmark.com.

Agriculture big part of bank’s success

M A R K E T FA C T S

Carcass Live

of natural gas used for electric power generation.

The robust production levels have kept natural gas stocks significantly above historical levels, but the surplus relative to the five-year

average has diminished in recent weeks. Last year’s supply peak is beginning to look out of reach, with some increased electric generation demand contributing to the decline.

A wildcard in the market has been funds trading the long crude oil/short natural gas spread. Sizable spreading activity this year may mean that crude needs to have a hard sell-off to sustain a rally in natural gas.

It appears crude oil and natural gas have moved in opposite directions as spreaders liquidate holdings. The natural gas market’s domestic nature tends to insulate it from fluc-

(Thursday’s price) Prv. week Change $94.64 5.18 $95.00 4.85

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 112.82 0.42

This week 113.24

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 08-12-10 13.5 20.8 31.1 08-05-10 7.3 14.7 44.7 Last year 6.7 16.7 45.4 Season total 1426.0 185.8 1764.4 Previous season total 1206.3 149.0 1685.2 USDA projected total 1470 1200 1975 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

First National Bank, which has been at the same location in downtown Litchfield since 1860, also derives much of its business from the ag sector.

And agriculture has been somewhat insulatKen Elmore ed from the U.S. recession, he said.

Paul Ellinger, ag economist at the University of Illinois, recently reported delinquency rates at commercial banks as of last year averaged 10.14 percent for residential mortgages and 8.81 percent for

commercial real estate but just 3.24 percent for ag loans.

“More than half of our loans are in agriculture,” Elmore said. “We’re definitely committed to ag.”

Risk for ag loans has intensified, though, as prices for farmland and cash rents continue to rise while input and commodity prices remain volatile.

The situation has caused many banks to require additional documentation and more detailed cash flow information for ag loans, Elmore said. His bank also looks for opportunities, such as crop insurance or government programs, to mitigate risk for its

farmer-customers.

Fortunately, credit still is available for good borrowers, according to Elmore.

In fact, he believes retaining local customers is vital for community banks.

“We’re very blessed to have three locally owned banks (in Litchfield),” he said.

First National Bank, under the leadership of Charles M. Long, grew in the past 30 years from $7 million to more than $75 million in assets.

Future challenges include increased regulations as well as uncertainty of the estate tax, capital gains tax rates, and tax credits for biofuels production, Elmore added.

Analyst: Cattle report a bit disappointing The USDA cattle on feed remain steady to slightly highreport released Friday ended a er due to a demand pull coustreak of four consecutive pled with tight meat supplies. months of higher placements The USDA cold storage in feedlots. report released last week USDA reportshowed supFarmWeekNow.com ed placements plies of all during July F o r m o r e i n f o r m a t i o n o n meat are down totaled 1.75 mil- USDA’s cattle on feed report, 15 percent lion head, down go to FarmWeekNow.com. compared to a 6 percent from a year ago. Beef year ago. supplies as of “Short-term, traders may last week were down 13 perthink that’s a bit disappointcent from last year while ing,” said Rich Nelson, direcpork supplies declined by 28 tor of research at Allendale percent.

Inc. in McHenry. “They were “There is no doubt we expecting a larger drop in have a tight meat supply,” placements” closer to 7.4 perNelson said. “When concent. sumers start feeling better The drop in placements, (about themselves and the however, should help lighten economy) we’re looking at a the supply picture, the analyst bull market (that could top said. $100 cash cattle by the fourth Overall, the inventory of quarter).” cattle and calves on feed Nelson believes demand totaled 9.87 million head, up 2 will be the key driver of the percent from last year. cattle market.

“It’s a little negative,” NelBeef exports for the first son said of the report. half of the year increased 14 However, Nelson looks for percent compared to the same cattle prices near-term to time last year.

Meanwhile, marketings of fed cattle during July totaled 1.9 million head, down 2 percent from last year. This is the lowest marketings number for the month since at least 1996, USDA reported. — Daniel Grant

FarmWeek Page 15 Monday, August 23, 2010

PROFITABILITY Corn Strategy

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

World isn’t short of wheat With the industry starting to coalesce around a 60 million to 65 million-metric-ton (2.2 billion bushels to 2.4 billions bushels) Russian crop, importers and exporters can better understand the change in world trade that will occur this year.

Over the past month, there’s been a burst of wheat export business, not only for the U.S., but for the European Union (EU) as well. Importers who had wheat purchases from Russia canceled represented much of this burst in activity.

Egypt says it has covered most of its Russian cancellations. We suspect other countries have as well. With that, there will be less pressure to chase prices higher.

As prices move up, buyers will shift into a pattern of covering short-term needs. As they dip to more reasonable levels, $6.50 or less on nearby Chicago futures, we’d expect importers to push their coverage forward more aggressively.

Even though the supply of wheat outside of the U.S. and

Basis charts

China has become as tight as it was in 2008, the total world supply is not nearly as tight as it was that year. Supplies are abundant in the U.S., large enough in the EU to support good exports, and potentially large enough in Australia and Argentina to export more than those countries have the last two years.

Canada’s crop potentially is smaller than last year but still large enough to support a good export program.

At the same time, importers are going to start building into their purchasing programs the potential implications of expanded fall wheat plantings.

Even though the drought is far from over in the Former Soviet Union countries, there are indications the hot, dry weather pattern may be starting to break down. This summer’s high prices have ignited ideas that wheat acreage will expand this fall, implying larger crops next summer.

If it looks as though world production might increase next year, the prospect of lower prices would shift buyers back toward covering short-term needs. That would undermine price support, giving the market more of a downward bias.

The wildcards in the mix might be China and India.

Both have exportable supplies of wheat, China in particular.

India currently has a ban on wheat exports.

China doesn’t have a history of exporting wheat, but it could sell wheat and buy corn to help contain the upward bias in corn prices that has plagued the country over the past year.

In the end, the world isn’t short of wheat, and prices probably already have seen their peak. That fits with longterm price cycles.

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Cents per bu.

2009 crop: Wrap-up oldcrop sales now.

2010 crop: Strength in wheat and soybean prices have helped support corn, wheat in particular. Corn started to show some independent strength last week based on talk from the Pro Farmer crop tour that yields were not as good as anticipated. Use rallies into the $4.30s on December futures for catch-up sales.

Fundamentals: It wasn’t until this past week that export demand enjoyed the enthusiasm noted in soybeans and wheat. Much of the business being transacted was replacement of canceled Russian barley business. The uncertainty surrounding yields is supportive, with the balance sheet not having much room for the supply to slide before the trade begins to get concerned that the supply could be getting a little too tight. The crop tour hinted the USDA yield estimate could be a little too high but maybe not enough to have much impact.

Soybean Strategy 2009 cr op: Old-crop basis levels continue to erode with the calendar marching toward harvest. Futures action last week suggested they may be turning down into harvest.

Wrap up sales.

2010 crop: November soybeans lose upside momentum when they approach $10.50-$10.60. The late week drop through the fail-safe should have boosted sales to 60 percent. Use rallies to $10.15-$10.25 for catch-up sales.

Fundamentals: The tour that crossed the major Midwester n g rowing areas last week found high pod counts in nearly every state. Participants voiced some concern about yield potential because of the prevalence of sudden death syndrome. Soybean and meal export sales continue to be accumulated at an extremely rapid pace. That could temporarily stall once buyers feel a good new crop is relatively secure, removing support the market has enjoyed recently.

Wheat Strategy 2010 crop: Even with the lack of certainty about the size of the Russian crop, the trade is rapidly coming to a consensus that most of those issues already have been built into prices. The quick retreat from psychological resistance at $7 on Chicago September futures indicated bullish enthusiasm continues to wane. Use rallies into the $7-$7.40 range for catch-up sales. Storage hedges, or hedge-to-arrive (HTA) contracts, for winter delivery are still the most attractive tool for making sales.

2011 crop: Use rallies to $7.25 on Chicago July 2011 futures for catch-up sales. If basis is wide compared to this past summer, consider a HTA contract.

Fundamentals: Major importing countries indicate they already have covered most of the wheat purchases that Russia had canceled on them.

New-crop sales are close to being on track with the latest USDA projection. Buyers will be less willing to chase the m a r k e t u p, b u t b e m o r e aggressive as nearby futures dip below $6.50.

FarmWeek Page 16 Monday, August 23, 2010

PERSPECTIVES

Illustration by Sharon Newton

Science helped transform farms Recently I was down on the farm in Illinois. I still can’t get out of my mind how different the farming business is today compared with when I was a little boy. At the same time, in some respects, it’s the same.

As a boy, after milking our cows by hand, we bottled the milk in the basement of our farmhouse and then sold it in my grandfather’s little store. My dad planted our corn with two old horses pulling a two-row planter. I had JOHN to feed the chickens and gather the BLOCK eggs each day. We would butcher a hog, and my mom would can.

Can you relate to that?

Now today: The milk cows are gone. The chickens are gone. We don’t butcher any of our own hogs. Our

two horses, named Burt and Bill, are gone along with the two-row planter. And, of course, we don’t pick any corn by hand.

Farming is more specialized with a big 32-row John Deere planter. We still raise hogs, corn, and soybeans.

Our improvement in efficiency and productivity has been amazing. Corn yields have tripled. We raised 200 head of hogs in those days. Now we raise 8,000 with double the efficiency.

How did this happen?

It happened because of: • Selective plant and animal breeding — better plants and animals.

• Genetic engineering — herbicides, fungicides, and insecticides. Our plants are protected against pests and weeds that suck the yield potential.

• Finally, today we feed the crops and animals exactly what they need to maximize their productivity.

Let’s take corn for example. Soil tests give us the guidance. We put on lime if the fields are too acid and enough nitrogen, phosphate, and potash to maximize yield.

Heading back to school in rural America It’s that time of year again. New school supplies and school clothes are on the minds of many youngsters.

But, as the new school year quickly approaches, thoughts of sharpened pencils and three-ring binders are being outweighed in rural schools by more pressing issues, such as teacher retention and updated classroom technology.

In Washington, D.C., lawmakers currently are at odds over federal funding formulas and rules on teacher credenTRACY tials. But in rural communities, TAYLOR the heart of the matter is not GRONDINE about policies, formulas, and rules; it’s about community, opportunity, and equality.

To many rural residents, the local school plays a significant role in community development. In fact, many rural areas tend to revolve around their schools.

A major hurdle facing rural America’s classrooms is the hiring and retention of teachers.

The inability to attract and keep teachers is due to lower salaries in rural school systems, geographic and social isolation, requirements to teach multiple subjects and grades, and lack of professional development opportunities.

According to Thomas Farmer, director at the National Research Center on Rural Education Support at the University of North Carolina, rural school districts often have difficul-

ty finding and retaining highly qualified teachers, particularly in the areas of special education, English language, and secondary math and science.

Further, according to the June 2010 issue brief, Grow Your Own and Other Alternative Certification Programs in Rural School Districts, as many as 84 percent of rural school districts reported some difficulty filling teaching positions.

Another challenge facing rural schools is that of access to technology. Affordable broadband access is a real concern for rural educators.

While many children living in urban areas have the opportunity to click online and have the Internet pop up within a matter of seconds, rural students often are faced with “wait-and-see,” dial-up Internet connections.

For rural schoolchildren to have the opportunity to be competitive and educationally on par with urban students, it’s important they be brought online and equipped with the same technological learning advantages.

Incentives and funding for teachers to relocate to rural areas are just as crucial.

Sharpened pencils and new lunchboxes may be important. But making sure all of the nation’s kids have the same educational opportunities is imperative.

Tracy Taylor Grondine is director of media relations for the American Farm Bureau Federation. Her email address is tracyg@fb.org.

There is a science to raising a big crop or good hogs. You can’t feed the hogs molasses as I saw in Cuba 10 years ago. They won’t gain weight.

The new technology that we have available today has made all the difference in the world.

Think about the improvement in farming efficiency: Less labor needed; less fuel needed; less land to produce more; and for livestock — less time to market.

With all the changes in this farming business over the decades, there is one constant.

It is still exciting to grow a crop or raise a hog or calf. You can see the transformation right before your eyes. You are producing something of value.

What an impressive sense of accomplishment.

Harvest is just around the corner. It’s going to be fun.

John Block of Gilson, a U.S. agriculture secretary in the Reagan administration, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman.

His e-mail address is jblock@ofwlaw.com.

LETTER TO THE EDITOR Farmers share blame in ag disconnect Editor: Do you remember the expression, “You reap what you sow?”

Mr. Ellingson’s column (July 5 FarmWeek) made an excellent point regarding the general public’s ignorance about dairy farming and agriculture in general. I have spent most of my life with one foot in the city and the other on the farm, and I can tell you he is more right than he realizes.

About 60 years ago, industrial agriculture and USDA decided there were too many farmers at the beginning of the chemical farming era, and a lot of people were pushed off the farm.

Many from the southern states ended up in slum neighborhoods of the industrial northern cities where crime, dope, and hoodlum gangs run rampant.

Then in the 1970s, Earl Butz decreed “farm fencerow to fencerow, get big or get out, etc.” and the push to vacate the countryside went into full swing.

Do we really need to wonder why so many people know so little about farming?

With fewer farmers, we have fewer people who are related to farmers, thus fewer people who can go visit the farms of their grandparents, aunts and uncles, or cousins and get some exposure to farming.

The Humane Society of United States’ campaigns only reinforce the fact that nature abhors a vacuum — in this case, a lack of accurate knowledge about agriculture.

Now those of us who have practiced, supported, and otherwise encouraged industrial agriculture have only ourselves to blame.

Social media can be helpful in connecting farmers to city dwellers.

But farmers’ markets, pickyour-own, and other things that bring customers and other visitors to the farm so you can look them in the eye, shake their hand, and talk to them one on one are even better.

ROBERT A. SAYRE, Dundas