urban moms learned their farm counterparts weren’t that different, especially when it came to fashion, during a recent mom’s meeting in Chicago. ........................2
Corn yielD potential in many parts of the Midwest is shrinking by the day, based on recent findings of two separate crop tours. .......................................3
stink bugs are expected to be more of a problem for Illinois farmers in the future, University of Illinois experts told those at the recent Agronomy Day. ...................8
Monday, August 29, 2011
Three sections Volume 39, No. 35
U of I to use adjustable-rate leases with farm operators 10 farms set for bid in ’12 BY KAY SHIPMAN FarmWeek
The University of Illinois is changing how it rents farmland, starting with 10 Central Illinois endowment farms up for bid in 2012. The idea to initiate an annual adjustable farm lease came from university administration and followed board policy “to
FarmWeekNow.com We have comments from the U of I’s Gar y Schnitkey on the new rental formula at FarmWeekNow.com.
make a more equitable process in which we share the risk with the farm operators more than we have in the past,” Kevin Noland, the university’s senior director of treasury operations, told FarmWeek. The competitive bidding process will be announced in advertisements in newspapers that are local to each farm. Three farms are located in Piatt County, and one straddles Douglas and Moultrie counties. A single farm is located in each of the following counties: Cham-
paign, DeWitt, McLean, Menard, Moultrie, and Sangamon. Through a right of first refusal, current tenants will be allowed to match the highest bid based on the cash bid and other criteria, Noland explained. Those criteria include a farmer’s experience, farming practices, location, and financial viability. Under the new lease arrangement, the farm operator will pay the dollar amount for the first year of the lease and then a flexible formula will be applied, effective March 1, 2013, for the 2013 crop year and through the end of the lease, according to Noland. The formula is linked to the USDA Risk Management Agency estimate of gross farm revenue by county. That formula is explained in a University of Illinois Extension article, “Flexible Cash Leases Based on Crop Insurance Parameters.” It can be found online at {www.farmdoc.illinois.edu/manage/newsletters/fefo07_13/fefo0 7_13.html}. In addition to using a new type of lease, the U of I also is changing the length of the leases from three years to five with annual adjustments and an option for five additional annual renewals.
The length of a lease agreement may be extended to as many as 10 years before a farm would be rebid, Noland noted. The U of I determined the three-year lease arrangements were too short. The longerterm leases and less frequent bidding will give the staff
more time to work on management issues, such as soil fertility and drainage systems, Noland explained. Currently, the university owns 30 endowment farms with a total of about 11,000 acres. Endowment farms were gifts to the university to gener-
ate income for scholarships, fellowships, research activities, loan funds, and 4-H programs. “We hope this (change) will be positive and a big success,” Noland said. “Two years from now if we find things are not working as we expected, we will tweak the process.”
AND SO IT BEGINS
Corn harvest was in full swing last week as three combines rolled through a field on the John Dowson farm near Divernon in Sangamon County. Early yield reports in the state so far have been quite variable but generally have been average to below average. Corn moisture reports last week ranged from 16 percent to 28 percent. More reports on crop prospects on page 3. (Photo by Ken Kashian)
IFB task force finalizing recommendations
Ag budget dilemma raises chicken/egg concerns
Periodicals: Time Valued
BY MARTIN ROSS FarmWeek
With a “super Congress” commission gearing up for long-term budget cuts and ag programs seemingly in the crosshairs, a Farm Bureau economist questions whether ag lawmakers should play their cards or wait to see the commission’s hand. A 12-member select HouseSenate panel by Thanksgiving is to arrive at $1.5 trillion in overall cuts to be made over the next decade. That’s on top of $1 trillion in recently prescribed congressional reductions. That’s hastened concerns
about cuts in future direct payments or other farm programs. “We’re the first on the chopping block, it seems,” suggested Illinois Farm Bureau Farm Policy Task Force (FPTF) Chairman Darryl Brinkmann, whose panel last week finalized 2012 farm bill recommendations for the IFB Board of Directors and eventually member consideration. American Farm Bureau Federation economist Bob Young pegs the likely 2012 farm bill budget hit at $10 billion-$35 billion, noting speculation about how specifically the commission might direct ag cuts. Members could propose
FarmWeek on the web: FarmWeekNow.com
general spending caps as a guide for individual committees in slicing their piece of the budget pie, or issue specific program directives for up-ordown congressional approval, Young told FPTF members. Or ag committee leaders could opt essentially to “write a new farm bill in the next two or three months,” in an effort to maintain control over program priorities, he said. By mid-October, House and Senate committees are to submit recommendations for cuts in programs under their jurisdiction. Young was unsure “how the ag committees are
going to participate in this process,” arguing they would have to consider whether submitting a figure would merely give the commission a base upon which to add further cuts. “In this environment, we’re all going to be trying to take money from someone else,” he said. Last year’s presidential deficit reduction commission recommended $10 billion to $11 billion in total ag cuts, while a recent House budget proposed $35 billion in longterm cuts, focusing on commodity programs. See Dilemma, page 4
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, August 29, 2011
Quick Takes POLICY PROJECTIONS — Some Illinois producers with poor yield prospects could see some safety net relief this season, according to University of Illinois Extension farm management specialist Gary Schnitkey. Schnitkey suggested “low-yielding farms could get crop insurance payments,” especially those under a revenue protection policy (RP) or county-level Group Risk Income Protection coverage with a harvest price option (GRIP-HR). Harvest prices are primed to exceed spring projected prices. And for the first time this year, revenue policies automatically include a harvest price bump in guarantees, unless the grower takes a harvest price exclusion. Producers must elect for the harvest price option under GRIP. “Higher coverage levels will likely pay off more,” Schnitkey said. The Average Crop Revenue Election (ACRE) program is far less likely to make a payment for 2011, because corn and soybean prices are running higher than ACRE’s benchmark national price, Schnitkey said. SAFETY FUNDS ROLLING IN — A recent memorial fundraiser has generated nearly $3,800 for the cause of grain safety, according to Carroll County Farm Bureau manager Chas Welch. The fundraising effort, spearheaded by the Illinois Farm Bureau-supported Grain Handling Safety Coalition, was launched in conjunction with a late-July anniversary memorial for Alex Pacas in Mt. Carroll. The 19-year-old Haasbach LLC elevator employee died while working unsuccessfully to free 14-year-old Wyatt Whitebread once he became entrapped in stored corn in July 2010. The coalition is dedicated to raising awareness of grain safety issues and fostering community-based safety efforts. To help the group develop safety materials and programs, send further donations to Dr. Robert Aherin, University of Illinois, 1304 W. Pennsylvania Ave., Urbana, IL 61801. Make checks payable to the University of Illinois Foundation, with the Grain Handling Safety Coalition listed on the memo line. Welch reported contributions are continuing to come in. QUINN SIGNS WATER-RELATED BILLS — Gov. Pat Quinn last week signed legislation related to the state’s water resources. Two bills will improve and enhance programs to collect and properly dispose of unwanted prescription drugs and keep them out of the water system. HB 2056 creates a collaborative public-private collection and disposal program and was an initiative of the Pontiac and Antioch high school students who have promoted collection programs, commonly known as P2D2 (prescription pill drug disposal). HB 3090 allows communities to authorize city halls or police departments to host drug collection containers. Both laws take effect Jan. 1. P2D2 programs reduce the amount of drugs entering Illinois waste water systems. HB 248 allows recycled and treated wastewater to be used for irrigation and other non-consumption uses in the North Shore Sanitary District. The bill took effect immediately. Use of recycled wastewater is expected to save large volumes of treated drinking water.
(ISSN0197-6680) Vol. 39 No. 35
August 29 2011
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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EmErging iSSuES
Technology leaps may be key to ubiquitous broadband access BY KAY SHIPMAN FarmWeek
Rapid technology advancement may offer solutions for providing universal access to high-speed Internet, according to an industry panel at a Central Illinois broadband forum last week. The Illinois Technology Partnership (ITP), a nonprofit organization interested in technology and broadband issues, hosted a panel discussion that covered broadband access and other issues. “The FCC (Federal Communications Commission) estimated the cost for everyone (in the U.S.) to access broadband is $350 billion,” said Lindsay Mosher, ITP executive director. “The question today is — how do we achieve ubiquitous broadband access?” A mix of technology may offer a solution for expensive last-mile connections to homes, according Jamie Mathy, chief technology officer with the Mavidea Technology Group. “We’re going to have our own fiber and a wireless ring around our area,” Mathy said of a project involving McLean County and surrounding counties. Mathy described “mesh networks” that have an ability to find “hot-spot paths” to wireless high-speed Internet points within in a community. However, no definitive solu-
tion has been determined “on how we will roll this out to every house,” he noted. The chief technology officers of the state universities are working together on potential solutions to meet campuses’ Internet needs, said Mark Walbert, Illinois State University’s (ISU) chief technology officer. ISU is working toward wireless Internet access across its Normal campus and is collaborating on technology advancements with other universities, Walbert added. To Dr. Wesley Valdes, medical director of the University of Illinois Center for Telehealth, the issue is less about how broadband access
is provided than how broadband can change health care. With wireless technology, “the doctors are no longer chained to their desks; they also can be mobile. It’s a convenience we’re bringing to the health care market,” Valdes said. “My goal is to make it so the person doesn’t know how it (broadband) gets there.” Mobile devices allow doctors to take diagnostic images to patients’ bedside for consultations instead of requiring patients to be moved, Valdes noted. Such devices also would allow a doctor to send an image of a patient’s wound or skin condition to a specialist far away, he added.
Southern Illinois co-op receiving $21 million USDA broadband loan USDA recently awarded a Southern Illinois telephone cooperative a $21 million low-interest loan to install fiber-optic cable for high-speed Internet services. It was the only Illinois project awarded funding in last week’s broadband announcement. Wabash Telephone Cooperative, based in Louisville, plans to install 777 miles of fiber-optic cable and hopes to complete the project within five to seven years, according to Jeffery Williams, the co-op’s general manager. The loan will allow the co-op to keep its costs lower and may speed the process of connecting all its customers to the fiber-optic network, Williams said. “Fiber is what’s going to let small-town residents have more say over what services they want, giving them choices of the latest services and technology,” Williams said. Wabash Telephone services subscribers in parts of eight counties: Clay, Edwards, Effingham, Jasper, Marion, Richland, Wabash, and Wayne counties. — Kay Shipman
Illinois farm moms fashion new image of modern farmers and agriculture Common interests and shared concerns help bridge gaps and break down stereotypes, according to two Illinois farm women who participated in a recent Illinois Farm Families event. Emily Webel of Farmington, Holly Spangler of Marietta, Donna Jeschke of Mazon, and Deb Moore of Roseville answered questions about farmers and farming from nearly 40 Chicago-area moms at a Moms Meet-Up event in Chicago. “Once you’re a mom, you’re part of a club. The commonality is good,” Webel reflected last week. “We sat down on their turf and said, ‘What questions do you have to ask me?’” Some questions were serious: “Is my food safe?” Others, light-hearted: “Do you wear bibs (overalls)?” Much to their surprise, the urban moms quickly recognized their farm counterparts weren’t that different, especially when it came to fashion. One urban mom admitted she thought the farm moms would be wearing jeans and boots, but then she laughed at her own incorrect
assumption, Spangler said. But the conversations provided food for thought for the farm moms, as well as the urban ones. The contrast between farm and urban lifestyles presented each woman a different take on meal planning and grocery shopping, Spangler noted. She remembered one woman explained she had her groceries delivered weekly to her apartment because she couldn’t carry the groceries — and her children — simultaneously up three flights of stairs. Meanwhile, Spangler explained she tries to make as few trips to town as possible and plans ahead to do her shopping. Spangler and Webel enthusiastically supported the mom-to-mom outreach and said they hope it will continue. “In social media, moms are a powerful force,” Webel said. “This is absolutely the way to go to get (farmers’) image changed with the people who buy the groceries ... We’re going along the right track.” — Kay Shipman
Page 3 Monday, August 29, 2011 FarmWeek
productioN USDA downgrades condition of corn crop
Early harvest report confirms yield losses
BY DANIEL GRANT FarmWeek
Pat Webster, who farms with his brother, Mark, and their father, Jerry, in Pike County, last week after shelling about 500 acres of corn confirmed concerns about lower yields on their farm. “We’re definitely seeing a yield loss from the heat in July,” he told FarmWeek. “We think we probably lost about 25 bushels per acre.” Test weights from the early harvest also were low, about 52 to 53 pounds per bushel. But moisture readings, which were 19 percent on Aug. 22, improved quickly and were down to 16 to 17 percent by Aug. 25, Webster said. Four neighbors in Pike County also started corn harvest last week, said Webster, who believes this harvest will
be a quick one if the weather remains warm and dry. Corn yields on the Websters’ lighter soil so far have averaged about 135 bushels per acre. Webster is hoping for an average yield of 180 bushels on the family’s best ground. “There have been so many weather issues” around the country, he said. “We still feel pretty fortunate. A lot of farmers are worse off than we are this year.” Elsewhere, Randy DeSutter of Knox County last week said his yield potential is below average for corn but “the jury is still out” on soybeans. Jerry Watson of Champaign County, reported a large number of tipping and zipper-like corn ears will hurt his yield, but scattered showers last week “should help pod fill” of
his soybean crop. Dale Hadden, IFB District 10 director from Morgan County, predicted a lot of corn in his area could average between 120 and 150 bushels per acre, well below trend-line yields. USDA’s National Agricultural Statistics Service Illinois field office last week downgraded the condition of the corn and soybean crops for the sixth time in the past seven weeks due to the challenging conditions. Less than half the corn crop in the state (42 percent) last week was rated good to excellent, 38 percent was rated fair, and 20 percent was poor to very poor. The condition of the soybean crop was rated slightly better at 53 percent good to excellent, 34 percent fair,
These corn ear samples taken last week during the Pro Farmer Midwest Crop Tour were consistent with what tour participants found all over the Midwest. Some ears are excellent, but many suffered from tip-back due to hot, dry conditions during pollination. The reduction in kernels obviously will cut into final yields. (Photo by Julie Root, RFD Radio Network)
Need soil site info? There’s an ‘app’ for that Before you start to dig or build, you can learn whether the soil is suitable for your project online. A digital soils application has been created by professional soil scientists nationwide at {websoilsurvey.nrcs.usda.gov}. “The Web Soil Survey, or WSS, is a modern application that pulls together site-specific soil data characteristics to ensure individuals, professions, and industries find success,” said Gary Struben, state soil scientist for the Illinois Natural Resources and Conservation Service (NRCS). Website users may access data about physical and chemical soil properties. They then can correlate those properties with map data to determine if a site is suited for a particular use or project. The WSS data is a product of the National Cooperative Soil Survey, a joint effort of USDA’s NRCS and other federal and state agencies and other partners.
NRCS is promoting use of the WSS tool because it is fast and easy. “You define the site or location in question, access soil data to select properties to investigate, run a report of the findings, and then print or download the report,” said Struben. “Think about it — soil properties, strengths and weaknesses — are key to the success or the failure of nearly every project,” says Bill Gradle, state conservationist for NRCS. “Whether it’s a new house with a basement, a tree planting project, or the development of a new strip mall, soil on the site can make it or break it.” Current WSS soil data are available for every Illinois county and for more than 90 percent of counties nationwide. “Because WSS is a technical aid from the U.S. Department of Agriculture, it is available free of charge and without commercials or advertisements,” said Gradle.
and 13 percent poor to very poor. USDA earlier this month predicted Illinois’ corn yield will average 170 bushel per acre, with a national average of 153 bushels. Darrel Good, University of Illinois Extension economist, predicted both those numbers will come down as harvest progresses. USDA last year started in August with a corn yield estimate of 180 bushels in Illinois
only to see that average decline to 157 bushels by the end of harvest. “I look for a similar decline this year in Illinois,” Good said last week. “My guess is (the national corn yield average) will be substantially lower than 153, maybe by four to five bushels, based on weather patterns.” The state’s topsoil moisture last week was rated 66 percent short over very short and 34 percent adequate.
Crop tour estimates point to short crop Corn yield potential in many parts of the Midwest is shrinking by the day, based on recent findings of two separate crop tours. The Pro Farmer Midwest Crop Tour last week took about 2,000 samples of corn and soybeans in Illinois, Indiana, Iowa, Minnesota, Nebraska, Ohio, and South Dakota. And the corn yield estimates compared to last year were down in all seven states by a range of 1.7 percent in South Dakota to as much as 14.3 percent in Indiana. Pro Farmer estimated corn in Illinois will yield an average of 156 bushels per acre, 11 bushels below the tour’s three-year average and down 14 bushels from USDA’s estimate earlier this month. In Iowa, Pro Farmer projected an average yield of 164.6 bushels per acre, down 2.6 percent from a year ago. “Iowa, we hoped, would be the area we’d see increased production (potential) to offset what was lost in the eastern Corn Belt,” Brian Grete, Pro Farmer senior market analyst, told Julie Root of the RFD Radio Network. Root participated in the FarmWeekNow.com eastern leg of the Pro Farmer Listen to an interview with Pro tour. “Obviously, that didn’t Farmer’s Brian Grete about happen, based on what we har vest prospects at Farmfound in the tour data. WeekNow.com. “Now the question is how much downside potential is there for the corn crop estimate from USDA as we move through September, October, and November,” Grete noted. The Pro Farmer Crop Tour counted soybean pods instead of estimating yields. And pod counts were highly variable. In Illinois, soy pod counts were slightly below the three-year average. Meanwhile, Soy Capital Ag Services, which manages nearly a quarter of a million acres in Central Illinois and the Midwest, last week unveiled similar yield estimates from its crop tour in McLean County, which consistently is one of the top corn-producing counties in the nation. Participants of Soy Capital’s crop tour pulled about 1,600 corn samples in McLean County and estimated a county-wide yield average of 167.1 bushels per acre, down almost 22 bushels from Soy Capital’s five-year average for the county and its lowest projection since 2005, when there was as regional drought during the growing season. “With the combination of late planting and heat stress, it just does not look good out there,” Kevin Meiss of Soy Capital said last week at a field day near Bloomington. “There is a lot of variability.” Corn yield estimates on the Soy Capital tour ranged from a low of 23.5 to a high of 224.3 bushels per acre. Soy Capital’s tour results also showed about a 15-bushel yield bump from fungicide applications but a severe yield penalty on continuous corn. “It looks like corn-on-corn is going to get hurt for a second year in a row,” Meiss said. The average yield on continuous corn was estimated at 128.5 bushels per acre compared to 177.7 bushels for corn following soybeans. — Daniel Grant
FarmWeek Page 4 Monday, August 29, 2011
the farm bill
ICGA floats ACRE improvement Latest EPA report plan amid federal budget concerns underlines farm BY MARTIN ROSS FarmWeek
Amid ag budget pressures, the Illinois Corn Growers Association (ICGA) is floating changes reportedly aimed at melding the best attributes of Average Crop Revenue Election (ACRE) and Supplemental Revenue (SURE) programs into a more broadly effective risk tool that complements crop insurance. In cooperation with University of Illinois Extension ag economist Gary Schnitkey and Ohio State University, ICGA has developed a revenue safety net plan that attempts to simplify farm programs. ICGA’s proposal is based on member feedback on current program complexity, and aims to fall within the narrowing confines of Washington budget concerns. ACRE, created in the 2008 farm bill, provides producer loss payments when a national price, statewide yields, and individual farm yields fall below set thresholds. ICGA’s proposal would set new yield triggers at the crop reporting district level. According to ICGA President Jim Reed that should make for more “geographically compact” protection. Noting concerns about duplication among existing risk management/crop insurance programs, Reed suggested the plan would help smooth year-to-year revenue variability, while insurance would continue to cover the “big oneyear loss.” The new plan, up for National Corn Growers Association review this week, was designed to capture a part of potential farm direct pay-
ment cuts, “knowing that the (farm bill budget) baseline is going to be reduced,” Reed told the Illinois Farm Bureau Farm Policy Task Force (FPTF). Reed echoed IFB’s call that Congress consider ag cuts “proportionate to what the rest of the economy takes.” While direct payments appear a key target for lawmakers, economist Robert Thompson told FarmWeek lawmakers will eye “any redundancy or overlap” in programs, including duplicative risk protections under crop insurance, ACRE, loan deficiency payments, and SURE standing disaster aid. “We tried to capture some of the problems ACRE had from the inception — to try to simplify it, to try to make it more of a disaster payment program that covered some of the rationale for having a SURE program,” Reed elaborated. “We tried to make it trigger more often but with fewer large payments than ACRE currently provides, in an attempt to try to get money to people in stress, when it’s most needed. “We tried to structure a program that would be meaningful as a safety net but yet still be able to provide some level of savings to the budget.” Reed said ICGA’s plan can be adapted “to any (budget) number Congress gives us.” The FPTF has considered ICGA’s proposal as well as ideas from other groups in developing 2012 farm bill policy for delegate approval in December. The IFB board will review specific FPTF recommendations this fall.
Dairy reform plan mixed bag for producers and processors A three-pronged U.S. House dairy program reform proposal contains some potential cream as well as elements Illinois producers and processors might find curdling. As ag groups — including Farm Bureau — continue to formulate proposals for the next farm bill, former House Ag Chairman Collin Peterson (D-Minn.) and Rep. Mike Simpson (R-Idaho) are spearheading legislation that reflects the National Milk Producer’s “Foundation for the Future” dairy plan. House Ag Chairman Frank Lucas (R-Okla.) reportedly is unwilling to move the Peterson/Simpson dairy proposal as a standalone measure unless he sees strong producer/processor support for the entire package. Illinois Farm Bureau livestock specialist Jim Fraley reported he currently is “not seeing a lot of consensus” on the bill. At a time when “we’re trying to grow our herds” in Illinois, Fraley sees concerns about the plan’s support for mandatory supply management, a concept IFB opposes. But he noted many producers see merit in a proposed Dairy Producer Margin Protec-
tion Program, which would protect a farmer’s margin (the difference between feed costs and milk price) and provide a price floor for low-price periods. That program, which would replace the Milk Income Loss Contract program, would insure 75 percent of individual base milk production when margins fall below a prescribed trigger. Dairymen could “buy up” to a higher level of margin “insurance” for an additional premium. Gary Lee, Prairie Farms Dairy vice president for procurement, suggests margin protection “could be a very good tool for dairy producers.” Prairie Farms’ board has taken no stance on supply management proposals, but Lee cited “real misgivings” about pricing of existing Class II (manufacturing) milk under the Peterson plan’s revision of federal milk market orders. In a move reportedly aimed at improving price discovery, the plan would restructure marketing orders to cover two basic classes: I (fluid milk) and II. Illinois is a state with high Class I use, and that part of the plan likely would cut into more costly Class I pool supplies, according to Fraley. That could force “a great
deal of reinvestment” in dairy plants that wish to retain production of products such as cottage cheese, he warned. Otherwise, he said, processors “may be faced with simply getting out of this end of the business,” and one potential outcome could be significant redistribution of the dairy processing industry. “My worst fear is it will make it very cost-prohibitive to produce what currently are Class II products in areas that have a deficit of milk production — areas that don’t produce enough milk to cover their local needs,” Lee told FarmWeek. “Even though there is a lot of milk in Clinton and Washington and Bond counties, Southern Illinois is a deficit milk production area virtually all year. As you get into Kentucky, Tennessee, Alabama, Mississippi, it becomes much more of a deficit area. “If Class II milk production had to be discontinued in those areas and moved to areas of abundant milk production, there’s no provision in the (Peterson) bill to cover the expense that would be incurred making that move,” said Lee. — Martin Ross
program importance Farmers likely will continue to face a potentially rising “mountain of regulation that’s going to have a detrimental impact on productivity,” American Farm Bureau Federation regulatory specialist Don Parrish warns. At the same time, Congress appears poised to cut ag programs that help farmers stay on top of environmental challenges. U.S. House Ag Committee member Bobby Schilling, a Colona Republican, noted that amid “a lot of (federal) regulatory overreach,” farm programs remain especially crucial in driving voluntary ag conservation compliance. A new U.S. Environmental Protection Agency (EPA) Science Advisory Board analysis links excess environmentally “reactive” nitrogen with surface water damage, toxic algae “blooms,” hypoxia (marine oxygen deficiency), acid rain, global warming, human health, and drinking water safety. The National Cattlemen’s Beef Association fears the report “could signal renewed scrutiny of nitrogen emissions by the EPA,” which has pushed greenhouse gas and stringent livestock/nutrient standards. Parrish sees the study as one more possible step toward Mississippi River Basin nutrient regulations similar to eastern Chesapeake Bay standards. Just as critics of the Chesapeake plan charge EPA has ignored the positive contributions of ag conservation practices on that region, Parrish argues the report is “kind of behind the curve” regarding improvements to date in farm nitrogen use and management “efficiencies.” Parrish nonetheless noted the board’s recognition that nitrogen fertilizer will be crucial to feeding a growing world population. Further, the environmentalist Union of Concerned Scientists (USC) sees the report as evidence in favor of preserving farm bill conservation programs “which will provide opportunities to cut nitrogen pollution.” The Conservation Stewardship Program alone could “significantly” reduce nitrogen emissions and runoff, UCS senior scientist Noel Gurwick stated. “Supporting programs like that one should be Congress’ highest priority, but unfortunately, many of these initiatives are threatened by budget cuts,” Gurwick said. The EPA report acknowledges “conversion of marginal crop land to (the Conservation Reserve Program) stores (carbon) and reduces erosion and nitrate leaching.” Parrish noted the role of ag programs in “maintaining soil productivity” while addressing environmental concerns in an economical manner. “(Farmers) are great stewards,” Schilling told FarmWeek. “With the technology out there today, they can tell exactly how much (fertilizer) they need to put down. When they’re putting anything on the ground, it costs them money. There’s no way they’re just going to saturate a field. “We want to drink clean water; we want to breathe clean air. But at the same time, we want to keep our companies in business. We don’t have to be forced to do things by the federal government — that’s why (House greenhouse) cap-and-trade (legislation) went down,” said Schilling.
Dilemma
Continued from page 1 House Ag Committee Ranking Democrat Collin Peterson recently suggested a “sequester trigger” plan that would consider $5 billion to $6 billion in cuts but exempt nutrition programs (which constituted 84 percent of January baseline spending) and the Conservation Reserve Program. Direct payments account for 86 percent of commodity program outlays, and Young said ag lawmakers may view bumping payment eligibility from 85 percent to possibly 65 percent of base acres as “the cleanest way to do a reduction.” Meanwhile, he noted a “big increase in crop insurance” in recent years: Spending had reached 7 percent of January’s baseline. Premium subsidies account for 69 percent of federal crop insurance spending, and “that’s where the money is if you’re going to go after crop insurance,” Young said. Noting current crop conditions and variability, FPTF members emphasized crop insurance as a top priority for their constituents statewide. “The safety net is still their first concern,” Champaign County producer Jerry Watson said. Mercer County FPTF member Jeff Kirwan deemed crop insurance “our No. 1 safety net value for the dollars,” and suggested Congress consider expansion of a “livestock-type safety net,” as well.
Page 5 Monday, August 29, 2011 FarmWeek
challenges
Economists may have cracked non-convergence ‘riddle’ Basis levels remain susceptible to swings BY DANIEL GRANT FarmWeek
Economists at the University of Illinois believe they have pinpointed the cause of wild fluctuations in basis levels and a lack of convergence, particularly in the wheat market, in recent years. And it doesn’t evolve around speculators or market manipulation as some have theorized in previous attempts to explain how wheat futures peaked at $2 per bushel above cash prices in 2008 and how similar issues hounded the corn and soybean markets, although not at the level of the wheat market. “The dramatic problem we had (with a lack of convergence) throughout 2008
poked its head up a bit last fall,” said Scott Irwin, economist at the U of I. “It was unprecedented and it was a big riddle” as to why the futures and cash market were so far out of sync. The root of the issue actually can be traced all the way back to the implementation of “Freedom to Farm” in 1997, when the U.S. government stopped managing market volatility through storage programs, according to Irwin, who last week discussed the U of I’s findings with the Illinois Farm Bureau Profitability Advisory Team. “Storage is an important shock absorber in the market,” Irwin said. When the U.S. government stopped managing volatility through storage programs, “the value of storage started going up,” said Irwin.
But while the value of physical grain storage has been on a steady uptrend since the late 1990s, storage rates in the futures market have been capped at about 4 cents per bushel. The cap on futures storage rates meant the carry in the futures market also was capped, and it created a wedge between the futures market and grain in physical storage. “The wedge develops when the price of physical storage goes above the capped rate in the futures market,” Irwin said. “The adjustment came in the basis — the futures prices got bid up so the hedgers got the same return as those who store physical grain.” U of I researchers found no evidence of market manipulation. “No one is manipulating the market or playing games.
Syngenta has taken an action which could put at risk a major export market for U.S. corn producers.” “Bunge looks forward to accepting Agrisure Viptera once approval from China is secured,” it stated. AgriSure Viptera is cleared for key global markets identified under a Biotech Industry Organization-National Corn Growers Association GMO product “BIO policy.” But that policy does not address China’s approval: Illinois Farm Bureau Senior Commodities Director Tamara Nelsen noted it was drafted before China began buying U.S. corn. Syngenta expects China to approve Agrisure Viptera corn imports by March. The Chinese market today consumes less than 1 percent of U.S. corn production, and Viptera accounts for less than 2 percent of corn acres this year, Showalter said. Given grain segregation capabilities, he sees “other options to manage this situation” beyond refusal to accept the grain. “Having planted a trait that’s fully approved within the United States and that growers clearly see a lot of value in, to find out a few weeks prior to harvest that their grain company’s not going to accept it is not a risk we feel growers should have to accept,” Showalter said.
“Since (Bunge) posted its signs, we’ve been in communications with the vast majority of major grain exporters. All of them have indicated they’re willing to accept (Viptera) corn.” Chinese approval reportedly is held up amid concerns about possible Viptera protein in ethanol-derived distillers dried grains (DDGs). Consolidated Grain & Barge also has indicated it would not accept Viptera corn this fall. Syngenta has set up a call center for growers concerned about marketing Agrisure Viptera corn. Call 1-800-3191360 to find outlets that will accept that grain. Whether China will prove a “consistent” market for U.S. corn is yet to be determined, Showalter said. But IFB’s Nelsen notes China is a challenging and sensitive customer, citing past Chinese actions affecting U.S. soybeans, poultry, and DDGs. U.S. Grains Council Chairman Wendell Shauman, a Kirkwood producer, told FarmWeek, “We don’t want someone else dictating what we can and cannot grow,” especially as new agronomic traits emerge. However, China has “every legal right” to reject grain from varieties it has not yet cleared, he said. “China suddenly and rapidly is becoming a potentially very significant market,” Shauman said. “That’s the horns of the dilemma we’re on with this current situation. We have to find a solution to this — we don’t want to lose a market, and we don’t want to lose the right to use new traits.”
Syngenta-Bunge dispute raises choice/market issues BY MARTIN ROSS FarmWeek
A prospective legal skirmish between a key biotech corporation and a major grain company poses a dual dilemma for growers seeking new crop tools and export market growth. Syngenta filed suit in an Iowa U.S. district court against grain handler Bunge for refusing to accept corn from its new Agrisure Viptera insectresistant varieties mere weeks before harvest commences. The GMO product, which controls 14 above- and belowground corn insect pests, was marketed this season after receiving full federal approval. The Viptera corn prohibition has been posted at Bunge facilities; Syngenta spokesman Quinn Showalter said his company filed suit following failed talks with Bunge. Syngenta seeks an injunction forcing Bunge to remove postings as well as a court ruling on “an issue that needs resolution,” he said in an RFD RadioFarmWeek interview. Showalter called Bunge’s actions “unfair, unreasonable, and frankly illegal.” Bunge’s 11th-hour notification violates federal and state statutes that require buyers to treat growers “in a fair and reasonable manner,” he argued. In turn, Bunge North America stated it was “surprised and disappointed that
This is what had to happen to equalize storage returns in physical and futures markets,” Irwin said. “We can’t find any link between convergence problems and index funds.” The CME Group in Chicago recently implemented a variable storage rate for its wheat contracts that have improved convergence in that market. But Irwin is concerned the markets still could experience issues with a lack of convergence.
“We’re still playing with fire in the corn and soybean markets, even though they’re working now,” Irwin said. “Convergence failures may reemerge.” Irwin proposed the CME Group implement a fixed storage rate system and raise storage rates for corn and soybean futures contracts by 2 to 3 cents per bushel to account for the rising value of storage space.
President proposes rural RX; federal ‘co-pay’ available? In some communities, local health care not only is crucial to public welfare, it is the economy, or close to it. That may be why the White House’s new strategy for revitalizing rural America includes physician recruitment and technology development measures aimed particularly at keeping smaller, more remote “critical access” hospitals (CAHs) open. In addition to proposed small business/job creation initiatives, the recently formed White House Rural Council recommended efforts to bolster the professional workforce for CAHs — facilities with 25 or fewer beds. The U.S. Department of Health and Human Services (HHS) will issue guidance to expand National Health Service Corps (NHSC) loan program eligibility to enable CAHs to recruit doctors through loan incentives. NHSC participants receive up to $170,000 in medical loan repayment in exchange for a five-year service commitment in a medically needy area. Pat Schou, Illinois Critical Access Hospital Network executive director, said the plan is “a good step” in addressing needs within underserved rural areas. Rural physician recruitment “is very tough these days,” and, indeed, is a top concern for Illinois CAHs, she told FarmWeek. The White House suggests more than 1,300 CAHs nationwide could recruit new staff through the NHSC program — Schou was hopeful that with new loan repayment options, “we can attract them and keep them.” Addition of one primary care physician in a rural community generates some $1.5 million in revenue and creates 23 jobs annually, while the average CAH generates $4.8 million in annual payroll, according to the Rural Council. “The critical access hospital is the small businesses in the community — the No. 1, 2, or 3,” Schou said. “Many times, it provides the only payroll dollars flowing through a small community.” Currently, most CAHs employ physicians through rural health clinics, area medical practices, or programs in which doctors may work both in the hospital emergency department and with inpatients. The Rural Council also recommended expanding high-tech health information technology (IT) through a USDA/HHS agreement linking rural hospitals and clinics to existing capital loan programs that allow them to buy needed software and hardware. The White House noted rural hospitals tend to have lower financial operating margins and limited capital to make investments needed to purchase high-tech equipment. Schou reported a number of rural hospitals currently are financing new IT equipment and systems. “Telemedicine” — technology that links rural and urban providers — is being tapped in Illinois to speed diagnoses, aid stroke patients, and deliver psychiatric services to rural communities. But technology investments frequently must be made upfront, and securing conventional loans can be difficult if a hospital has low cash reserves, Schou said. She is concerned about the impact a newly charted $2.5 trillion, 10-year federal budget cut could have on hospitals that today may operate on a mere 1 to 2 percent revenue margin. Even a 2 percent cut in overall Medicare/Medicaid funding could “devastate services” for small hospitals, Schou warned. “If you’re the No. 1, 2, or 3 employer, and you have to close, what’s that going to do to that rural community?” she posed. — Martin Ross
FarmWeek Page 6 Monday, August 29, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: More rain last week and more hail along with it. Last Saturday (Aug 20) a quick storm brought about 1 inch of rain and a narrow path of hail damage across northern Winnebago County. It shredded the corn leaves, but the damage may be minimal because the corn was pretty well dented. It did knock some bean pods off, and we are still waiting for the hail adjuster to estimate the damage. More rain on Tuesday brought another 1.25 inches, so we have enough rain for this year now. We have had lots of unusual storms this year, with either high winds or excessive rain and hail, but most of the farmers in this area are pretty happy with their crops so far. I know we are the exception compared to other parts of the state this year. Pete Tekampe, Grayslake, Lake County: Another great week in Lake County. We got 0.8 of an inch of rain over the weekend, Aug. 20-21, and then another 0.5 on Tuesday. Corn and beans are doing well and keeping a dark green color. The main job is cutting the grass twice a week. This doesn’t happen very often in August. Temperatures are cooling down at night and making life more bearable, but we are still getting sunlight in the daytime. A great week is expected this week for the Farm Progress Show. See you there. Leroy Getz, Savanna, Carroll County: Rain on Saturday (Aug. 20) and again on Tuesday totaled 1.6 inches, giving an August total of 2.8 inches. My fourcounty crop drive last week rated soybeans excellent to very high yield potential. More sudden death syndrome is showing up. Corn yields will vary and the storm-damaged areas have less than 100-bushel-peracre potential. There are some very good fields that could give a producer bragging rights in some areas. More leaf blights are showing. The milk line is about 60 percent down the kernel. Some corn silage chopping has started. Growing degree units now total 2,344. Ryan Frieders, Waterman, DeKalb County: Another beautiful week of weather in DeKalb County. Nighttime temperatures have been cool, with days in the mid-80s. We received 1.8 inches of rain last week. The precipitation should help fill the pods of soybeans and help with ear fill on corn. There is sudden death showing up in the soybeans. The corn also is dying prematurely from disease in some areas. Larry Hummel, Dixon, Lee County: Signs of the upcoming harvest are becoming more pronounced. Corn husks are starting to turn brown, several seed cornfields look like they are just days away from harvest, and early-planted soybeans have leaves starting to turn yellow in the lower half of the canopy. Time to put the finishing touches to the summer projects and prepare for harvest. Goss’s Wilt has been the talk of the coffee shop. It’s not hard to find. As a matter of fact, you can scout for it at 55 mph. The big question is how much of an impact will it have on yields? My feelings are it will be negligible in most fields, but I have seen a few fields where it will have a significant impact on final yields. Joe Zumwalt, Warsaw, Hancock County: Same old story continues around Western Illinois. Extremely dry conditions have taken a severe toll on the corn and now soybeans. My last measurable rainfall was more than eight weeks ago. Crops, pastures, roadsides, livestock, and yes, I believe even the water hemp are showing drought stress. Corn harvest has begun just to the south, with yields reported in the 120s. I think it’s going to be an early and quick fall. Let’s keep it a safe one. Ken Reinhardt, Seaton, Mercer County: There was a nice rain to the north of here Tuesday. I had a couple of inches in Rock Island County. The rain tapered off to next to nothing toward Aledo in central Mercer County. 1 inch of rain in July and nothing in August do not make for a good soybean yield. I saw one spot in corn that already was flat where Goss’s Wilt had struck.
Jacob Streitmatter, Princeville, Peoria County: Rain showers totals were all over the board, ranging from just a few tenths to more than 2 inches in some areas. The rain should help both crops, but it was a little late for corn. It is my guess that there will be some corn shelled in the area around Labor Day. Mark Kerber, Chatsworth, Livingston County: September is almost here. Kids are back in school and crops are maturing. Harvest is around the corner. We received more than 1 inch of rain last week, so we are hoping this will give us an average crop of soybeans as they are still green enough to fill out pods. Corn milk line is about half-way down on the kernels before black layer. Ears are small and kernel depth is shallow. Federal crop adjusters will be busy. Every new corn trait that is developed seems to have a problem with timely approval in some country. This time, the Agrisure Viptera trait won’t be approved by China until early 2012, whereas every other country in the world has given approval. This trait was approved for all major markets as recommended by the National Corn Growers Association and the Biotechnology Industry Organization. Seed production will be down this year, so order early. Have you booked next year’s nitrogen and priced it? Markets are making new highs. Ron Haase, Gilman, Iroquois County: Last week it rained on Aug. 21 and 23 with majority of it falling on Tuesday. We received a range of 1 to 1.4 inches on our farms. Local corn development ranges from the R4 or dough stage up to the R5 or dent stage. The most mature corn has the milkline half way down the kernel. At that point, kernel dry matter is close to 88 percent of final kernel dry matter accumulation. Soybean development is in the R5 or beginning seed growth stage, up to the R6 or full seed growth stage. Local closing prices for Aug. 25: nearby corn, $7.43; new-crop corn, $7.22; nearby soybeans, $13.82; newcrop soybeans, $13.64. Brian Schaumburg, Chenoa, McLean County: Both crops and farmers issued a collective sigh of relief and prayers of thanks were offered last Tuesday as 1 to 3 inches of rain fell on parched ground in our area. The moisture should add five bushels to bean yields and help corn to mature evenly with better kernel depth. Annual co-op meetings and plot days are in full swing. Harvest will begin soon after Labor Day. Corn, $7.39; $7.18 fall; soybeans, $13.83; $13.63 fall; wheat, $7.12; $7.28 new. Steve Ayers, Champaign, Champaign County: As one of my friends put it, the beautiful crescent moon last week “tipped” Tuesday and spilled a general rain over Champaign County with a range of 0.7 of an inch in Ivesdale to 2.3 inches in Sadorous. Throughout the area there still are dry pockets that have had only 0.5 of an inch in both July and August. I liked the quote from the Pro Farmer eastern tour director, Brian Grete “It’s just not a typical Illinois corn crop.” The Premier Co-op crop tour Wednesday found a 164.6 bushelper-acre average with a low of 136 at Dillsburg to a high of 186 at Rising, Broadlands, and Bondville. It was a busy weekend with the Half Century of Progress in Rantoul and the Urbana Sweet Corn Festival. Now the Farm Progress Show is this week in Decatur. Wilfred Dittmer, Quincy, Adams County: I know it sounds like a broken record but our gauge still is recording empty with 0 received in the past week.I think we may as well start counting the bushels that are being lost every day rather than trying to guess how many the reported acres are going to produce because around our area, prospects are dwindling pretty fast. Some of the cornfields are looking like October already is here. There may be some beans if it could rain sooner rather than later. At least the guys with hay have been able to put away a lot with no rain to interfere. Have a safe week.
Carrie Winkelmann, Tallula, Menard County: We received 0.3 of an inch of rain Wednesday, which was more rain than we have seen in a long while. It perked the beans up for a morning, but now it is dry again. The pessimist in me says that it will start raining when we start to harvest, which will be sooner than later with this dry weather. We dug potatoes out of the garden last weekend and had a good crop. It was hard digging in the dry dirt, though. We canned 28 quarts and planned to can as many or more during the weekend. Todd Easton, Charleston, Coles County: Harvest is here in Coles County and much earlier than most would have liked because the corn crop had to prematurely die off to achieve this. A small handful of producers is getting started on April-planted corn and finding it in the low 20s for moisture and yielding in the 160s. Those at the elevator said grain quality was surprisingly good but test weights were low, as expected. Hand sampling of some May-planted cornfields has been finding moisture in the low 30s, which means they could be harvested this week if farmers want to burn some propane to dry it out. Most of the corn crop could be out of the fields before soybeans ripen enough for harvesting. Currently, bean fields are still dark green and hanging in there as one chance of rain after another misses them. A good shower on the bean crop probably would improve the final yield at this point, but that may not be the case much longer. As we start in on the harvest, please remember to keep the safety of yourself and everyone else your No. 1 priority. Jimmy Ayers, Rochester, Sangamon County: We didn’t have any rain last week. Earlier, we had some storms roll through that left 0.3 of an inch of rain with 4-inch hail. Southern Sangamon County got pounded pretty good in some small spots. It wasn’t anything widespread, but 2.5 to 4inch hail is uncommon. Some in the area have been shelling corn for a little more than two weeks. Corn has been yielding 123, 136, 145, and 148, and some of the corn had moisture coming out of the field as low as 18 percent. The majority is 21-26. Beans are really needing a rain. There are lots of pods. They have held up real well until this last week. Now we’ve got some showing signs of stress and wilting during the heat of the day. A nice shower would be welcome though the corn probably is not going to be helped. Be careful out there. Doug Uphoff, Shelbyville, Shelby County: Still dry and more corn down from wind on Monday (Aug. 22). A lot of farmers are putting corn reels on. We sowed 7 acres of alfalfa on the 22nd. Thought we were going to get a rain shortly after that, but all we had was just a big cold wind. I was fortunate enough to see a 16-row chopper corn head on the new John Deere 690S combine. They were getting it ready for Farm Progress Show starting Tuesday in Decatur. The combine operator station has changed (includes a mini fridge) and the combine operator can even drive the auger cart when it pulls under the unloading auger. On top of that, the auger cart operator can monitor the grain level of combine hopper, so he knows when it’s getting close to being full or empty. And to think I was sowing alfalfa with a Farmall M and a 10-foot drill. April corn will be a lot better than May. April corn has been testing in the low 20s. May corn is 30 or more. Heard some yields of April corn of 160-170, but May was 120 to 130. David Schaal, St. Peter, Fayette County: Back in April and May when a rain cloud came over and dumped 1 to 3 inches, we always said later on in the growing season we would be wishing for one of these rains, and guess what — the time has come. Soybeans could use a good drink. It was hot here most of last week and it’s really changing the looks of the corn. Corn harvest will come up on us sooner than we think. Lawnmowers are getting a break. Cash corn, $7.38; new, $7.28; cash soybeans, $13.70; new, $13.49; wheat, $7.60. Have a good week.
Page 7 Monday, August 29, 2011 FarmWeek
CROPWATCHERS Dave Hankammer, Millstadt, St. Clair County: The past week proved to be another warm and dry one. We did receive some scattered rain showers in the area on Aug. 20. The rainfall amounts varied from 0.3 of an inch to almost 1 inch. Unfortunately, the showers didn’t extend very far to the east. I was at an equipment auction in a nearby county and there were only a few drops in the dust. The daytime temperatures were in the low 90s for most of the week, but it did climb to a high of 100 degrees on Wednesday. The corn crop is continuing to mature with several fields in the dry-down phase. In my recent travels, I observed a field already chopped for silage. There is discussion of some corn being harvested in the Columbia River bottoms. This is the exception as most farmers are planning to start harvest in early September. Soybean crop development seems to have slowed down. There are fewer pods per plant compared to last year, and what is there is thin. Late-planted beans are blooming, but have yet to set some pods. Rain and a late frost are needed to benefit this crop. Peach harvest is being wrapped up by the local orchards and apple picking is starting. Local grain bids: corn, $7.29; soybeans, $13.72; wheat $7.07. Have a safe week. Kevin Raber, Browns, Wabash County: Pleasant weather this past week here in Southeastern Illinois. The early corn is drying rapidly. I’ve heard reports of corn harvest starting in a couple of weeks. Soybeans are looking good, but we will need rain in September to have a good bean crop. The Wabash County yield tour is in a couple of weeks.
Rick Corners, Centralia, Jefferson County: Twenty, 30, 40, 50, even 60 percent chances of rain at different times the last three weeks and we got 0, nil, nada, zippo. Corn is pretty well toast. I’ve heard of a few yield checks around, and they are not nice. Beans? Well I went to St. Louis Friday and with the low humidity and the wind blowing a gale, I saw fields that if we don’t get rain soon — and I mean soon as in immediately — they won’t see a combine this fall. Dean Shields, Murphysboro, Jackson County: No rain to amount to anything in Jackson County last week. It is starting to get a little dry in a few places, but as a whole, the bean and corn crop are coming along pretty well. The corn is starting to dry down, and some is being picked by some of the larger farmers. Beans are well above the wheat stubble now, and you can’t even tell it was a wheat field anymore. A little bean spraying has been going on, but mostly everybody is in the mode of getting equipment ready or maybe taking a trip. The days are getting shorter, so we know what’s coming. Everything is coming along pretty well in Jackson County, and we’re getting ready for the fall.
Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Randy Anderson, Galatia, Saline County: It has started: The good, the bad, and the ugly, and it’s not the movie, it’s the 2011 harvest! A few farmers have started, and stalk quality is fair to poor. Standability could become a real issue as the crop keeps maturing. Corn yields are running 10 to 20 percent off of the farm average. Soybeans really turned around with the recent rain, but there is still some yield damage from the high temperatures we had earlier. We’re looking forward to making the trip up to the Farm Progress Show and taking a break from the farm. Plan on getting started with harvest after Labor Day. Good luck to our county Farm Bureau manager David Meeker (who has been hired as a Country Financial agent). Thank you for the work you’ve done for Saline and Gallatin counties. Ken Taake, Ullin, Pulaski County: Dry. That pretty much sums it up in a word. We missed the rains the past week and the crops are really starting to show the effects of dry weather again. At least temperatures have moderated a little bit with highs in the upper 80s instead of the upper 90s. Harvest is approaching pretty rapidly considering how late planting was. I would say we are maybe two weeks away from starting harvest. I’ve heard some farmers in the area may start within the next few days. I don’t think we have any corn quite that far along. Please remember to take time and be careful during this upcoming busy season.
Nitrogen management can provide numerous benefits BY DANIEL GRANT FarmWeek
Farmers don’t sell their entire crop in a single transaction. Most spread out their sales throughout the year to help manage risk and enhance selling opportunities. That approach is similar to what Howard Brown, manager of agronomy services at GROWMARK, hopes more farmers will adopt when it comes to nitrogen applications. Brown believes multiple fertilizer applications of
smaller rates, instead of one application per year, will benefit farmers and the environment. “We have to manage nitrogen as a system, not an application,” Brown said last week at a field day near Bloomington hosted by Soy Capital Ag Services. Nitrogen uptake by crops is dependent on water availability. But as farmers know every year, rainfall typically is spotty. So rather than put all their eggs in one basket with a single application of N, Brown
recommended farmers switch to a system approach. For example, farmers on high-quality ground may apply 100 pounds of nitrogen (with N-Serve) per acre in the fall followed by a 50-pounds-peracre broadcast prior to planting in the spring and topped off with a post-emergence application of 50 pounds. The multiple applications spread the risk and give the crop more chances for N uptake, Brown said. A system approach also can reduce the rate of N loss, which currently
is cited as a contributing factor in the hypoxia zone in the Gulf of Mexico. “I’m talking about a system of multiple applications where you put N on over time, not put more on,” Brown said. “We’ll use less N per unit of output.” Obviously, a systems approach of multiple N applications will cost farmers more money on the input side. Brown estimated the N systems approach may cost an extra $20 to $25 per acre. However, he believes maxi-
mizing N use by crops will pay for itself through increased bushels. He believes farmers who use the system on high-quality ground can produce 240- to 260-bushel corn. Reducing N loss also eventually could reduce regulatory pressure on farmers, Brown suggested. “I think we’ve got the secret to the future,” he said. “Through nitrogen management we can maximize yield, optimize N utilization, and minimize the environmental impact.”
Portion of corn crop showing signs of N deficiency BY HOWARD BROWN
Many farmers are taking a closer look at their cornfields and finding a variety of challenges as the crop approaches physiological maturity. One common visual symptom is the firing of the corn plant or expression of a nitrogen deficiency. To identify N deficiency, look for a V-shaped area moving down the midrib of the corn leaf, first appearing on the lower part of the stalk. If the supply of nitrogen entering the plant with soil water is inadequate to meet the developing ear’s demand, the plant will remobilize nitrogen from the older tissues of the lower leaves and stalk and move it to the developing ear. Significantly affected plants exhibit leaf necrosis (tissue death) up to and including the ear leaf. Other plants may show only deficiency symptoms on the lower leaves, if at all.
The expression of nitrogen deficiency is well documented and easy to identify, but the cause of the deficiency can be much more elusive. It is worth the time to determine contributing factors to each field’s lack of plant-available nitrogen as we make plans for the 2012 crop. One common cause of nitrogen deficiency in areas missing all the rain events is dry soil. Since most of the plantavailable N is in the nitrate N form and moves in the soil by mass flow (with water), the amount of N getting into the plant is closely related to the amount of plant-available soil water and the concentration of nitrate N in the soil water. If soil water is limited, so is the avenue for nitrate N to get into the plant. Although there may be an adequate amount of N applied to sustain good plant growth, if it is not in the nitrate
loss in harvest yield. Corn plants that have lost yield potential but have regained a late-season N supply to sustain growth may exhibit a reddish coloration. Although yield has been limited, sugar production through photosynthesis continues, producing sugars that have no place to go. As simple sugars accumulate in leaf tissue, the pigment anthocyanin overcomes the green color produced by chlorophyll, resulting in the reddish (purple) color development. What is the best way to Howard Brown, manager of agronomy services at GROWMARK, exminimize a lack of N availabiliamines a corn leaf that exhibits signs of nitrogen deficiency in a field ty caused by dry soils? Visit near Bloomington. (Photo by Daniel Grant) with your local FS crop speplant. Unfortunately, during cialist for his solution. It N form or in soil solution, it periods of extended hot, dry works. will be positionally unavailable weather similar to what many to the plant, resulting in Illinois farmers experienced Howard Brown is manager of expression of an N deficiency. in July and much of August, agronomy services for GROWThe return of soil moisture an inadequate supply of N MARK. His e-mail address is through rainfall will help hbrown@growmark.com. transport the nitrate N to the may result in a significant
FarmWeek Page 8 Monday, August 29, 2011
RESEARCH
U of I study shows refuge in bag best in battling rootworms Concerns raised about resistance BY KAY SHIPMAN FarmWeek
Western corn rootworms behave differently in Bt corn refuges planted in strips compared to seed-blend refuges, known as refuge in a bag, University of Illinois and Illinois Natural History Survey (INHS) researchers report. “The seedbag refuge seems to be better in mixing (Bt-susceptible and non-susceptible) insects,” Joe Spencer, an INHS insect behaviorist, said at the recent U of I Agronomy Day. Spencer emphasized the
importance for different rootworm populations to mate and disperse throughout a field. Rootworms that can survive Bt toxins may pass those genes
FarmWeekNow.com To listen to Todd Gleason’s radio report on Bt rootworm resista n c e , g o t o F a r m We e k Now.com.
along to their offspring. However, if susceptible rootworms mate with potentially resistant ones, that should reduce the potential for resistant offspring to be produced, he explained. “Block refuges (planted within or adjacent to Bt fields)
produce many beetles, but the insects don’t disperse in the field,” Spencer noted. To slow development of pest resistance, the U.S. Environmental Protection Agency (EPA) requires all growers of Bt crops to set aside a portion of each field for a nontransgenic refuge. The seed-blend refuges “assure refuge compliance with no possibility that you’ll forget or have problems,” Spencer told farmers. Spencer referred to a recent Iowa State University report in which rootworm adults resistant to Cry3Bb1 protein were collected in continuous cornfields with severe
root damage in northeast Iowa. The fields had been planted with Bt corn with the Cry3Bb1 protein. Some parts of Illinois, especially Southern and Western Illinois, are seeing low rootworm populations, according to Nick Tinsley, a visiting agriculture research specialist at the U of I. Tinsley reported the early results from a 47-county study conducted from midJuly through early August. “Through Southern Illinois and Western Illinois, western corn rootworms were not a problem,” he said.
East-Central and Northwest Illinois had more beetles, Tinsley added. Last week, severe rootworm damage was reported in Northwestern Illinois, particularly in continuous cornfields in Henry and Whiteside counties. “It is incredibly important for farmers to scout their fields. You can’t make a generalization about whether you will have rootworm pressure,” Tinsley said. “If you don’t have rootworm beetles, you won’t have rootworm eggs and damage, but you can’t make a generalization — you’ll need to scout,” he emphasized.
U of I Extension offers new online CNMP course
The brown marmorated stink bug is one of several stink bug species raising concerns among University of Illinois entomologists. (Photo by Michael Jeffords, Illinois Natural History Survey)
Stink bugs may become next problem insect in Illinois
Stink bugs figured prominently as pests of the future at the recent University of Illinois Agronomy Day on the university’s South Farms. “I think stink bugs will be more of a problem in the future,” warned Mike Gray, U of I crop sciences professor. “Several new insects are moving into the state, and unfortunately in time, they will occupy more of your attention.” The new insects invading Illinois include the brown marmorated stink bug (BMSB), an ‘I think stink bugs exotic invasive species, and the will be more of a redshouldered stink bug, which p r o b l e m i n t h e was found in Champaign County. To date, BMSB populations future.’ have been confirmed in Champaign, Cook, Kane, and McLean counties. — Mike Gray Soybean growers were University of Illinois advised to be watchful for both crop sciences professor redshouldered stink bugs as well as BMSB. However, the BMSB may pose the larger threat because it feeds on a variety of plants and crops — everything from vegetables and fruit trees to corn and soybeans. Recently, a McLean County farmer sent Gray a photo of an adult BMSB on an ear of corn. This season, U of I entomologists are surveying soybean fields for stink bugs across the state and will report their findings in fall and winter Extension meetings. In addition, a national expert on BMSB will speak at the Ag Masters Conference Dec. 5-6 in Urbana. — Kay Shipman
The University of Illinois Extension and the Department of Agricultural and Biological Engineering (ABE) will offer a comprehensive nutrient management plan (CNMP) development course on Thursdays from 4 to 6:30 p.m. from Sept. 8 through Nov. 17. The 11-week online web inar will include discussions on conservation planning, nutrient management, land treatment practices, and manure waste handling and storage. The course will conclude with information on the national and state regulations pertinent to CNMPs, the records farmers need to keep to include in a CNMP, and development of a CNMP. It will include a question-andanswer session featuring
experienced plan writers. For participants interested in being certified as technical service providers, attendance at three field days also is required. Field days will be Sept. 16, Oct. 7, and Oct. 28. The field days will provide hands-on experience using technical resources, such as the Websoil Survey, and implementing the three phases of CNMPs — gathering site information, evaluating alternative conservation practices, and implementing plans. This course has been approved for 24 certified crop adviser continuing education units, 14.5 in the nutrient management area and 9.5 in the soil and water area. For students wanting Conservation Activity Plan (CAP)
CNMP certification, this course is one of two needed to meet the certification training and education requirements. The second part will be offered in spring 2012 by U of I and ABE. The registration fee for the online course only is $375. The fee for technical service provider certification is $750, which includes all course materials and additional resources, and will be provided electronically on a U of I Extension USB drive. The course fee includes refreshments and lunches during each field day. For more information or to register, go online to {http://web.extension.illinois.edu/tsp/} or contact the U of I’s Laura Pepple by email at lpepple2@illinois.edu or by phone at 217-244-0083.
Energy crop field day to focus on tropical maize Tropical maize, an annual crop that provides high-quality livestock feed and high-yielding biomass, will be the focus of a Sept. 9 field day and plot tour on the Schetter farm south of Brighton in Jersey County. The program will start at 10 a.m., and walking tours will
continue until early afternoon. Participants will learn about agronomic research on tropical maize, which is a dual-purpose crop being grown in Illinois. Field day attendees also will hear about opportunities for biochar, a co-product of biomass production and a poten-
tial soil amendment. The program is free and open to the public. It is sponsored by the University of Illinois Extension and Omni Ventures Inc. For more information, contact the U of I Extension Christian County office at 217287-7246.
Applications available for IFB Action Teams You may have heard farmers talking about how they care for their animals in radio spots that aired this summer. Farmers in the heavy livestock counties of Clinton, DeKalb, Jo Daviess, and Stephenson provided listeners with insights on how they cared for their animals. The exercise was part of a radio campaign that was the brainchild of the Illinois Farm Bureau Public Relations Action Team. That is one of the most recent examples of an Action Team achievement, according to Peggy Romba, who manages the Action Team program for Illinois Farm Bureau.
Applications for the 2012 teams are available now and are due Dec. 10. The teams are Public Relations, Education, Membership, and Quality of Life. Each is comprised of 10 to 15 men and women. The teams meet twice a year to turn their ideas into specific Farm Bureau projects. Brochure applications are available on the website {www.ilfb.org}. Click on the “Get Involved” tab and then the “Grow Committee Success.” Further information is available by contacting your county Farm Bureau manager.
Page 9 Monday, August 29, 2011 FarmWeek
Growmark
GROWMARK reports ‘great year’ with record sales It was a milestone year for GROWMARK, based on sales and income posted during the fiscal year that will end Wednesday. Jeff Solberg, chief executive officer, last week at the GROWMARK annual meeting announced record-high sales of $8.4 billion for the 20102011 fiscal year. “2011 was a great year for the GROWMARK system,” Solberg said. “The company generated the highest level of sales and second-highest level of pre-tax income in company history.”
‘The company generated the highest level of sales in history.’ — Jeff Solberg GROWMARK chief executive officer
GROWMARK net income was estimated at $182 million. “These results are attributed to a very strong group of member companies committed to a highly successful cooperative system, supported
and served by a great team of very knowledgeable and dedicated employees,” Solberg said. An estimated $80 million in patronage refunds will be returned to GROWMARK
Five co-ops receive performance awards Five Illinois FS member cooperatives last week were recognized during the GROWMARK annual meeting in Chicago for business performance improvement. Over a fiveyear time frame, each cooperative’s return on invested capital improvement is measured in comparison to other cooperatives in the system. From this measurement, the Performance Improvement Award was developed. The cooperative with the highest degree of improvement was Ag View FS Inc., Princeton. Mark Orr is president and Ron Pierson is president.
Other Illinois cooperatives receiving the award were: • Lincoln Land FS Inc., Jacksonville. Keith Hufendick was the general manager for the time period measured, and Joe Pickrell is president. • Christian County Farmers Supply Co., Taylorville. Mike Builta is manager and Mike Creamer is president. • Evergreen FS Inc., Bloomington. Kendall Miller is manager and Rick Dickinson is president. • West Central FS Inc., Macomb. Barry Schmidt is manager and Duane Deitrich is president.
Grain co-ops receive Ceres award Three grain cooperatives were recognized by GROWMARK Inc. with the Ceres award during the GROWMARK annual meeting last week in Chicago. The award, named for the Roman goddess of grain, is awarded to grain cooperatives
that achieve excellence by meeting at least three out of the four following criteria: EBITDA (earnings before interest, taxes, depreciation, and amortization)/per storage capacity, return on invested capital, bushel retention, and GROWMARK’s capital guideline ratio.
Wayne Nattress, retired executive director of the Iowa FFA Foundation, was honored last week with the “Friend of GROWMARK” award at the GROWMARK annual meeting. Nattress played an important role establishing and maintaining a close relationship between GROWMARK and Iowa FFA chapters and members. He also created awareness of GROWMARK awards and sponsorship programs available to Iowa FFA members. The Friend of GROWMARK award was established
in 1989 to recognize outstanding leadership/commitment to agriculture and friendship to the GROWMARK system.
GROWMARK honors ag leader
The three co-ops that qualified for the Ceres award were: • East Lincoln Farmers Grain Co., Lincoln. Paul Seaman is manager and John Adams is president. • Jersey County Grain Co., Jerseyville. Michael Welbourne is manager and William Kuebrich is president. • Route 16 Grain Cooperative, Nokomis. Mike Jackson is manager and Ted DeWerff is president.
member cooperatives and farmer-owners. GROWMARK is a regional cooperative that provides
agriculture-related products and services, as well as grain marketing, in 31 states and Ontario, Canada. GROWMARK owns the FS trademark, which is used by affiliated member cooperatives. The FS brand represents knowledgeable, experienced professionals acting with integrity and dedication to serve more than 250,000 customers. More information is available at {www.growmark.com}.
GROWMARK directors elected Five farmers, including three from Illinois, were elected or re-elected to three-year terms on GROWMARK’s Board of Directors during the cooperative’s annual meeting Friday in Chicago. The Illinois farmers are: • Jack McCormick, Ellis Grove, elected to his first term on the GROWMARK board. He and his wife, Stacy, operate a 1,750-acre grain farm and cow herd and cattle feedlot in partnership with his parents. He currently serves on the Gateway FS Inc. board. • Bob Phelps, Rockton, has served on the GROWMARK board since 1997. He and his wife, Amy, operate a 2,200-acre cash grain farm and beef cattle feedlot. He served on the board of Conserv FS Inc. • David Watt, Murrayville, has served on the GROWMARK board since 2002. He and his wife, Fonda, operate a 1,100 acre corn and soybean farm. Watt serves as president of Lincoln Land FS Inc. The other directors are Matt Heitz of Farley, Iowa, who has served on the GROWMARK board since 2004, and Kim Fysh of Thamesville, Ont., who was elected to his first term on the GROWMARK board.
FarmWeek Page 10 Monday, August 29, 2011
Page 11 Monday, August 29, 2011 FarmWeek
EMERgINg ISSUES
New state recreational access program enrolling landowners BY KAY SHIPMAN FarmWeek
A new state program will provide incentive payments to private landowners who voluntarily enroll their property for certain types of public recreation. The Illinois Recreational Access Program (IRAP) is one of 29 such programs nationwide. IRAP is using USDA funding to compensate landowners for allowing public access for certain types of recreation, including fishing, youth turkey hunting, bird watching, outdoor photography, and canoe and kayak
access on public waterways. Now through Oct. 15, the Illinois Department of Natural Resources (IDNR) is accepting enrollment forms from interested landowners in 68 counties in the Conservation Reserve Enhancement Program areas of the Illinois River and Kaskaskia River watersheds. Tammy Miller, IDNR’s IRAP manager, encouraged eligible landowners to submit the
simple enrollment form that includes a description of the property and available features, such as a pond or turkey habitat. “If you submit a form, you’re not committed (to participate). That’s your foot in the door; it’s on a first-come, firstserved basis,” Miller explained. After an enrollment form has been submitted, IDNR staff will contact the landowner to obtain additional information and to schedule a site visit. If a site is accepted, the landowner and IDNR will sign a lease for up to three years with an opt-out clause. Before public participants have access to enrolled property, they must complete an application and sign a liability waiver. For some activities, such as youth turkey hunting, accepted participants will be matched with a location, while for other activities, such as fishing, participants with a permit will be allowed to reserve a site. For more information or to obtain an enrollment form, go online to {www.dnr.illinois.gov/conservation/IRAP/}, or email Miller at tammy.miller@illinois.gov, or call her at 217-5241266. Information also is available from county Soil and Water Conservation Districts.
LIVESTOCK LESSON FOR LAWMAKER
Whiteside County farmer Ryan Camps, left, explains livestock care to state Rep. Karen Yarbrough, in the brown shirt, (D-Maywood), and Jackie Williams, one of Yarbrough’s constituents, during a recent county tour by the “adopted” legislator. The county Farm Bureau recently sponsored a farm tour for Yarbrough and a busload of her suburban constituents. They saw the Sterling farmers’ market, Dale Pfundstein’s beef farm in Sterling, Mark and Sheryl Von Holten’s hog farm in Lyndon, and the Gerken family farm in Sterling. They discussed the beef and swine industries and walked through a swine building. They also learned about new farm equipment technology and precision agriculture. Each visitor family received a bag of sweet corn. Many of the participants said they received information that debunked several myths and answered questions they had about farming. The event was modeled after similar tours Stephenson County Farm Bureau has arranged for its adopted legislator. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)
FAIR TIME DISCUSSION
State Rep. Thaddeus Jones, second from left, (D-Calumet City) chats with McLean County Farm Bureau board member Mark Hines, left, and county Farm Bureau manager Mike Swartz, right, as Billy Siems, a Calumet City police officer, looks on during a stop in the McLean County Fair poultry barn. The county Farm Bureau hosted Jones, its “adopted” legislator, and a busload of children and adults from his suburban Chicago district at the recent county fair. The group toured livestock barns and 4-H exhibit halls and participated in hands-on learning activities at a farm educational exhibit. This was the first up-close experience with agriculture for most of the suburban guests. “This program was an excellent opportunity to continue to build a relationship with a new adopted legislator and to educate a greater urban audience about how their food is grown,” said Christina Nourie, Illinois Farm Bureau northeast legislative coordinator. (Photo by Christina Nourie)
FarmWeek Page 12 Monday, August 29, 2011
fb in action
Edwards County Farm Bureau hosts ‘adopted’ Chicago teacher BY REBECCA PERRY
When Gina Salinas, a second grade teacher at Portage Park School in the Chicago Public School system, signed up for the Illinois Farm Bureau Adopted Classroom program two years ago, she did not know that it would lead her more than 300 miles south to Edwards County for
quite an educational experience. But that is exactly what happened. The Edwards County Farm Bureau adopted Salinas and her second grade students to teach them about agriculture and rural America. After several county Farm Bureau members visited the school in the spring, Salinas decided she
wanted to visit the county. County Farm Bureau staff and members worked to arrange various agricultural tours and visits for her. Because she visited during the county fair, she also got to experience that highlight of summer in rural America. While in Edwards County over three days, Salinas visited a farmer’s grain storage com-
plex, rode in a sprayer and learned about GPS technology, visited Wabash Valley Service Co.’s Browns Plant, and saw a meat packing plant. She also watched livestock shows and a livestock auction, visited the county historical society, toured a dairy farm, participated in a milk mustache contest, and ate meals with several Farm Bureau families. Salinas said she enjoyed her visit so much, she plans to visit again next summer. The Edwards County Farm
Bureau would like to thank everyone who made time to host and meet Salinas. Special thanks to the Shelby Lynch family, Lynch Farms, Mike Wilson, David Seifert, Lois Goodson, Eric Strine, the Toby Beadles family, the Edwards County Fair Board, and the Edwards County Farm Bureau Board of Directors. Rebecca Perry is the manager of the Edwards County Farm Bureau. She can be reached at 618-4452113.
First-time visitors get first hand look at farm BY DANELLE DESMITH
Chicago elementary teacher Gina Salinas feeds Jacob Beadles’ horse during her visit to the Toby Beadles farm in Edwards County. The county Farm Bureau recently hosted its “adopted” teacher for three days of farm tours and rural experiences. (Photo courtesy Edwards County Farm Bureau)
With most of the population two or even three generations removed from the farm, there are many people who don’t consider themselves directly affected by what happens in agriculture. The reality is that each and every person is a consumer of agricultural products every day, whether it’s through the food that we eat, the fuel in our vehicles, or the clothes that we wear.
However, many Americans have never had an opportunity to visit a farm to see who is producing these products. On a recent Saturday, more than 320 visitors turned out to tour the beef and grain farm of Randy and Kathy Faber outside of Sublette. The event was the Lee County Farm Bureau’s 17th annual Farm Visit Day. Visitors from all over Illinois, the U.S., and even a few from other nations enjoyed a guided tour of the Faber’s 4th generation family farm. While on the farm, visitors were able to see the Faber’s beef cattle operation up close, and several even took the opportunity to pet a baby calf. Many visitors had never been to a farm, let alone seen beef cattle up close, so for many, this was a new experience. Also, while on the farm, visitors were able to see the large pieces of equipment used to
grow and harvest grain. “Our goal in hosting this event is to educate the public about agriculture,” said Lee County Farm Bureau manager Danelle DeSmith. “There are a lot of misconceptions and misleading information out there about agriculture, and this is a great opportunity for attendees to experience farm life first hand, have fun, and learn about agriculture.” DeSmith added, “We hope through events like this we can show the public that families, like the Fabers, care for their animals and are working to produce a safe food supply for not just their family but for the world.” Those wanting more information about Farm Visit Day or the Lee County Farm Bureau may contact the Farm Bureau office at 857-3531 or visit the organization’s website, {www.leecfb.org}. Danelle DeSmith is the manager of the Lee County Farm Bureau. She can be reached at 815-8573531.
Visitors to Lee County Farm Bureau’s Farm Visit Day chat with Ben Kiner, Mendota, right, while petting a calf. (Photo courtesy of Lee County Farm Bureau)
Page 13 Monday, August 29, 2011 FarmWeek
from the counties
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OND — Farm Bureau will sponsor a crop survey at 9 a.m. Tuesday, Sept. 6, beginning at the Farm Bureau office. Call the Farm Bureau office at 618-664-3100 if you would like to be on a team. HAMPAIGN — Farm Bureau will sponsor a legislative reception from 4:30 to 6:30 p.m. Wednesday at the Farm Bureau office. Local elected officials will discuss issues. Call the Farm Bureau office at 217352-5235 for more information. AYETTE — Farm Bureau will begin a crop survey with breakfast at 8:30 a.m. Thursday, Sept. 8, at Robbi’s Restaurant, Vandalia. The group will have a steak cook out at 6:30 p.m. at the Farm Bureau office to conclude the tour. Cost is $5,
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and tickets are available at the Farm Bureau office or any Farm Bureau board of director. Call the Farm Bureau office at 2833276 if you would like to be on a team. NOX — A grain quality management and safety program will be at 7 p.m. Thursday, Sept. 8, at the Knox Agri Center. Randy Holthaus, GROWMARK grain systems operations manager, will be the speaker. Call the Farm Bureau office at 342-2036 or e-mail knoxcfb@knoxcfb.org for reservations or more information. EE — Deadline for teachers to apply for the Lee County Farm Bureau Foundation Ag in the Classroom grant is Sept. 15. To qualify, teachers must be actively teach-
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ing in Lee County and be a graduate of one of Illinois Farm Bureau’s Summer Ag Institutes. Download an application from the website {www.leecfb.org}. ADISON — A Tropical Maize and Energy Crop Field Day will be at 10 a.m. Friday, Sept. 9, a the Schetter Farm, Rt. 267 and 111, south of Brighton. Walking tours will continue until early afternoon. Call the University of Illinois Extension Christian County office at 217-287-7246 for more information. ONROE — The MonClair Corn Growers test plot tour will be at 6 p.m. Tuesday, Sept. 6, at Greg Guenther’s farm. The program and dinner will follow at the St. Clair County Farm Bureau office. Robert Bellm, University of Illinois Extension educator; Rich Clemmons, GovPlus Capitol Consulting; and Jeff Watson, IntelliAir, will be the speakers. Call the Farm Bureau office at 939-6197 by Wednesday for reservations or more information. TARK — Farm Bureau will sponsor a river cruise Thursday, Sept. 15, from St. Louis to Kimmswick, Mo. Lunch will be at the Blue Owl with
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Fulton County farmer Greg Leigh of Avon discusses pork production issues with state Rep. Kelly Burke (D-Evergreen Park), her son, Jack, and husband, Terry, during the family’s recent visit to Fulton County. (Photo by Elaine Stone, Fulton County Farm Bureau manager)
‘Adopted’ legislator visits Fulton County farmers BY ELAINE STONE
State Rep. Kelly Burke (D-Evergreen Park) recently visited Fulton County farmers with her family as part of the Illinois Farm Bureau Adopt a Legislator program. Burke, her husband, Terry, and their children, Emily, Jack, and Caroline were guests of the Fulton County Farm Bureau over two days in early August. Terry is an options trader in the corn pit at the Chicago Board of Trade Over dinner at the Bernadotte Café, Burke and her family visited with Fulton County Farm Bureau members and their families amid the setting of the historic Spoon River. Following the meal, they visited the farm of Fulton County Farm Bureau President Randy Farr and his wife, Sue. Although the Farrs’ red Angus weren’t cooperative and didn’t come in from the pasture, learning to drive a utility cart was just as exciting for the Burke children. After an early breakfast the next day, the group headed out for a very hot — the heat index was 117 — and busy day of tours. They started by touring Western Grain Marketing Cooperative’s rail shuttle near Adair. Then the group traveled to the hog farm of the Greg and Randall Leigh families. The two recently built a hog finishing building on their existing hog farm at Avon. They also toured the John and Holly Spangler farm and discussed a variety of issues over lunch. The topics included the cost of health insurance for farm families, environmental issues, why farmers do some of the things they do, and the high cost of inputs. Next was a stop at the Bill and Ellie Carlberg’s dairy near Canton. The Carlbergs milk about 50 Holsteins in partnership with their son, Lars, and his wife, Laurie. The Fulton County Farm Bureau appreciated Representative Burke bringing her husband and children to Fulton County. We hope they have a better understanding of Illinois agriculture and this is the beginning of a long friendship between Fulton County farmers and the Burkes. Elaine Stone is the manager of the Fulton County Farm Bureau. Her e-mail address is fultonfb@att.net.
shopping to follow. Cost is $130, which includes bus, cruise, and lunch. The bus will leave the Farm Bureau office at 6:30 a.m. Call the Farm Bureau office at 286-7481 for more information. T. CLAIR — The MonClair Corn Growers test plot tour will be at 6 p.m. Tuesday, Sept. 6, at Greg Guenther’s farm. The program and dinner will follow at the Farm Bureau office. Robert Bellm, University of Illinois Extension educator; Rich Clemmons, GovPlus Capitol Consulting; and Jeff Watson, IntelliAir, will be the speakers. Call the Farm Bureau office at 233-6800 by Wednesday for reservations or more information. ERMILION — Ag in the Classroom open houses will be from 4 to 7 p.m. today (Monday) and from 4 to 5 p.m. Tuesday in the Farm Bureau auditorium. Staci Walker, ag literacy coordinator, will have ag learning kits and materials available. Classroom presentations also may be scheduled with the teachers. • The Vermilion County Farm Bureau Foundation is asking farmers to consider donating some of their fall harvest to the
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Acres for Agriculture Education fundraising drive. Producers may pledge any amount of grain and work with their local elevator so that the donation gets applied to the foundation. Call the Farm Bureau office at 217442-8713 for more information. AYNE — The third annual Wayne County Tractor Drive will be on Labor Day, Sept. 5. The event will begin and end at the Wayne County Fairgrounds, Fairfield. Tractors will travel to White Farms, Geff. Forty antique tractors of the Carroll White Collection will be on display. Download an application at {www.waynecfb.com.}. HITE — The annual White County crop tour will begin with breakfast at 7 a.m. Wednesday, Sept. 7, at the Farm Bureau office. Teams will return at 11 a.m. for lunch and accumulation of data. Call the Farm Bureau office at 618-3828512 for reservations or more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 14 Monday, August 29, 2011
profitability
Now’s time to plant seeds of priority issues in D.C. BY CHUCK SPENCER
Planting in the fall and harvesting in the winter does not work on our Midwest farms, but we can use this technique for our legislative priorities. From Sept. 5, when Congress goes back into session, to Dec. Chuck Spencer 31 will be a good time to be active with our congressional leaders. We should be planting the seeds of priority issue ideas now while they are back in their districts, ask-
ing to hear our opinions. Agriculture has several priorities this fall, and cooperatives have identified issues important to all farmers. Congress will be working on issues in addition to the work of the Debt Super Committee. There is legislation the Senate could vote on as soon as senators choose. HR 872, “The Regulatory Burdens Reduction Act,” would clarify that agriculture would not have to apply for a National Pollution Discharge Elimination System (NPDES) permit to spray crop protectants on fields. HR 872 passed the House by a veto-proof majority, sailed
through the U.S. Senate Agriculture Committee, and waits for floor time in the Senate. While we discuss the financial future of the country, the Senate should take up this legislation as soon as the senators return and pass HR 872 by the same vetoproof majority to send a strong signal that proposed permit regulations are not needed. Legislation that would extend the Chemical Facilities Anti-Terriorism Security (CFATS) authorization provision is needed. HR 901 is the bill number for legislation that will keep CFATS from expiring this October and extend the law until 2018.
We implemented many of the provisions in 2008 and are becoming comfortable with how the program should work. Consistency is needed for best implementation, and extension will provide safety and certainty. GPS has become a standard for agriculture operations and cooperatives when applying crop nutrients and protectants to fields. The Federal Communications Commission (FCC) is considering a proposal by a company, Lightsquared, to develop a broadband network that would reach across many rural areas. While this sounds promising, the signal frequency Light-
Chuck Spencer is GROWMARK’s director of government affairs. His e-mail address is cspencer@growmark.com.
Joe Kilgus, GROWMARK director of plant food sales, told the Illinois Farm Bureau Profitability Advisory Team last week. USDA projected total production expenses this year would increase by about $20 billion and, for the first time ever, surpass $300 billion.
If realized, production expenses in 2011 would be up 7 percent from last year. Fertilizer prices in Illinois so far in 2011 are up 3 percent for anhydrous ammonia, 13 percent for liquid nitrogen/28 percent, 4 percent for diammonium phosphate (DAP), and 9 percent for potash. Prices in the state as of Aug. 18 ranged from $790 to $860 per ton for anhydrous, $670 to $750 for DAP, and $600 to $665 for potash, according to the Illinois Production Cost Report produced by the Illinois Department of Agriculture. Kilgus noted fertilizer supplies currently are tight for many products, demand is strong due to increasing food demand around the world, and prices are pressured by subsidies in India and export restrictions in China. “As long as commodity prices
hold up, and the economy doesn’t collapse, (fertilizer) prices should remain firm,” Kilgus said. USDA forecast U.S. net farm income this year could total $94.7 billion, which would be a 19.8 percent increase from last year. But farm income and commodity prices could be threatened by uncertainty in economies around the world. “The economy right now has everyone scared,” Kilgus said. “The biggest risk factor we see now is the impact a financial crisis could have on the commodity markets.” Meanwhile, farm income this year likely will vary tremendously according to what areas received timely rainfall compared to others where heat and drought evaporated much of the crops’ yield potential, according to Dale
Hadden, IFB District 10 director and chairman of the IFB Profitability Advisory Team. Crop yields and farm returns this year “will depend a lot on where you’re located in the state,” said Hadden, who expects below-average yields on his farm where he has received little to no rainfall since July 1. “A lot of people are enjoying the benefits of higher prices, but that’s not to say we aren’t concerned about input prices,” Hadden said. “We’ve already seen an increase in forward contracting. I think that means producers are looking at the cost of production and trying to manage the risk.” Kilgus last week reported about 80 percent of fall anhydrous ammonia has been purchased by retailers and farmers, which is higher than normal for this time of year.
squared will be using is so close to the current satellitebased GPS network that it will interfere with our GPS units. Interference with GPS units means that this very important tool will be rendered useless. GROWMARK and many others have submitted comments, and legislators should step into this discussion, too. These three issues are important to all of us and should be a focus of our legislators this fall.
Farm input costs expected to follow commodity price trends BY DANIEL GRANT FarmWeek
Input costs the rest of this year and into 2012 are projected to remain strong, barring any major financial meltdowns in the world. “Input prices are up, but profitability in farming is there,”
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $16.00-$45.50 $34.14 $34.00-$35.50 $35.12 n/a n/a This Week Last Week 22,899 18,722 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $94.88 $99.99 $70.21 $73.99
Change -5.11 -3.78
USDA five-state area slaughter cattle price Steers Heifers
This week n/a n/a
(Thursday’s price) Prev. week Change 113.84 113.71
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 134.39 -0.79
This week 133.60
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 115-185 lbs. for 170-206 $/cwt. (wtd. ave. 184.15); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8-18-11 10.9 17.4 29.5 8-11-11 6.6 21.5 37.1 Last year 12.4 24.7 44.0 Season total 1472.3 251.0 1733.8 Previous season total 1441.9 212.6 1811.5 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Economist sees increased risk of another financial meltdown The chance of another financial meltdown is on the rise, according to Scott Irwin, University of Illinois economist. And if another economic collapse occurs, it could have a greater impact on agriculture than in 2008-09 when strong commodity prices and high land values helped insulate the ag sector from the recession. “The risk of a 2008-style financial meltdown clearly is on the rise,” Irwin told FarmWeek last week. “That increases the chance of a recession, particularly in Europe and the U.S.” The U.S. economy absorbed a potential big blow early this month when Standard and Poor’s downgraded the U.S. credit rating from AAA to AA. The action eventually could raise borrowing costs for the U.S. government, companies, and consumers. Meanwhile, the U.S. unemployment rate this month remained historically high at 9.1 percent, although the rate was a slight improvement from a year ago when it was at 9.5 percent. “The data is not encouraging,” Irwin said. “But it doesn’t show we’re entering a recession yet. The risks, however, are on the rise.” The ag economy, meanwhile, seems to keep chugging along at a brisk pace. USDA this month projected record-high crop price averages for 2011/12 of $6.70 per bushel for corn, $13.50 for soybeans, and $7.60 for wheat. Reports in Illinois and other Corn Belt states continue to show farmland values at all-time highs.
But the ag economy could be susceptible to a financial meltdown, Irwin noted. Strong commodity prices, which have been fueled in part by booming biofuels production around the world, could be threatened if oil and fuel demand decreases due to economic troubles or another recession. “Recessionary conditions could feed into the (ag) sector faster through that (connection to oil and energy prices),” Irwin said. DTN/The Progressive Farmer’s agribusiness confidence index last week was much more optimistic about present conditions with a score of 110.4 — the baseline is 100 — compared to expectations for 12 months from now, which had a score of just 89.5. Darrel Good, another U of I economist, noted higher commodity prices likely will erode demand for feed, fuel, and meat. “If we continue to see consumer incomes under pressure, it suggests a demand reduction for meat,” he said. Good predicted crop prices likely will peak this fall, with futures possibly as high as $8 per bushel for corn and above the recent high of $14.10 for soybeans, due to a smaller-thanexpected harvest. He then looks for some possible price regression this winter. “I think we’re setting up for a year in which we see the high price early in the season and then possibly some price weakness this winter (if demand erodes),” Good added. — Daniel Grant
Page 15 Monday, August 29, 2011 FarmWeek
PROFITABILITY Corn Strategy
C AS H ST RAT E GI S T
Cents per bu.
ü2010 crop: Wrap up oldcrop sales on strength. Ending stocks could grow from the latest USDA forecast. ü2011 crop: The corn market once again was able to post a fresh contract high on continued concern about the crop’s yield potential. However, a close above $7.50 is needed to open the door for higher levels. Outside markets and economic uncertainty continue to be the wild card and leave the market vulnerable to sharp breaks. If you are comfortable with production prospects, boost sales to 60 percent, preferably with a hedge-toarrive (HTA) contract for winter/spring delivery. ü2012 crop: Use current price levels to make an initial 10 percent sale. vFundamentals: Initial reports from the Pro Farmer Midwest crop tour tend to suggest yields could come in below expectations, especially in the eastern region of the Midwest. Export interest is being subdued by high prices and the availability of feed wheat in the world. ûFail-safe: If December falls through $6.60, make sure sales are at recommended levels.
Soybean Strategy
High prices easing demand Corn export shipments continue to run below USDA projections. It appears strong U.S. prices are starting to limit export business. However, the drop in demand to a certain degree is typical seasonal weakening. With harvest quickly approaching, end users could be sitting on the sidelines waiting for fresh
supplies to enter the pipelines. Despite weaker demand, the most recent weekly export sales data included a sale of 58,600 metric tons (2.29 million bushels) to China. Wheat export shipments started out strong, as they were outpacing projections, but they have since backed off. It appears the majority of the international business continues to be sourced from the Black Sea region. Since late May, soybean export shipments have slipped below projections, which is further evidence the extreme volatility in the market has some sitting on the sidelines.
AgriVisor endorses crop insurance by
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ü2010 crop: We see little reason to hold old-crop inventory. ü2011 crop: With November futures trading near $14, we recommend you get sales caught up to recommended levels, using comfortable yield expectations. ü2012 crop: Use current price levels to make an initial 10 percent sale. vFundamentals: The November contract recently broke the $14 resistance, but has been unable to close above it. We need to see a close above this region to solidify the recent dip was the 16- to 18-week cycle low. With economic uncertainty and dwindling export demand, it may be difficult for soybeans to gain much additional upside potential. The U.S. will fight the availability of South American supplies deeper into the fall than usual. ûFail-safe: Make sure sales are at recommended levels if
November drops below $13.70.
Wheat Strategy
ü2011 crop: The short-term trend in wheat remains strong with Chicago December futures remaining above $7.50. Use current strength to make catch up sales. We may recommend another 20 percent sale if December moves up near $8. Check the Hotline daily. If you need to move wheat out of storage before fall harvest, either get it priced or arrange for commercial storage. The carry in futures more than pays for commercial
storage. Because of the carry, we prefer HTA contracts for winter or spring delivery for sales. vFundamentals: The recent market strength was based in part on concern about spring wheat yields. Early harvest reports in the Northern Plains suggest the summer’s warm, dry conditions may have capped yield potential. At the same time, the approach of planting in the Southern Plains and the persistent drought already are triggering concern about the 2012 wheat crop.
FarmWeek Page 16 Monday, August 29, 2011
perspectives
Malnutrition: Slow-motion natural disaster
O
ne of my favorite meals from childhood was a sandwich served on white bread with leaf lettuce, an onion, a tomato fresh from the garden — and Spam fresh from a can. Each can produced six slices of meat and my father always got the thickest one. Today, my grandkids continue our family tradition: They love their Spamwiches. In Guatemala, families are forging their own traditions — and delivering a million healthy meals to malnourished children with a new product called Spammy. Spammy is a fortified turkey spread whose specific purpose is to fight malnutrition. Not only is it inexpensive to manufacture and distribute, but Spammy also packs a lot of sustenance into each of its 3-ounce recyclable cans. The meat contains high-quality protein as well as zinc, iron, and vitamin B — the very things that malnourished people desperately need in their diets. Spammy is also shelf-stable, which means that it doesn’t require refrigeration. This year, Hormel promises to provide over 1.5 million cans of Spammy to impoverished people in Guatemala. It chose Guatemala for this project because this Central American nation of 13 million has such a high rate of poverty. A pair of nonprofit organizations, Food CAROL for the Poor and Caritas KEISER Arquidiocesana, work with family centers and orphanages to put Spammy into the hands and bellies of the people who need it most. The problem in Guatemala isn’t that people don’t have enough to eat, but that they don’t eat enough of the right things. Poor diets result in stunted growth and diminished cognitive development. The victims are also more susceptible to disease. According to some estimates, almost half the children of Guatemala show signs of malnutrition. The rate is 80 percent in some remote Mayan villages. The long-term ramifications for national health are troubling. A recent report by Christiane Amanpour of ABC News highlighted the problem. Her team drew a blue chalk line on a wall, marking the World Health Organization’s estimate for the proper height of 9-year-old children. Then they compared Guatemalan children in Guatemala with Guatemalan-American children in Florida. The kids in Central America were uniformly shorter. This is a problem of nurture, not nature. It’s about access to healthy food. In newspapers and on television, we’re always reading about natural catastrophes. Global malnutrition is a slow-motion natural
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Illustration by Sharon Newton
disaster that doesn’t make headines everyday but still demands our sustained attention. Spammy is perfectly situated to confront this challenge. It’s not just a tool of relief, but possibly an instrument of economic empowerment if it improves the intellectual development of the boys and girls who will create the jobs and run the businesses that represent Guatemala’s future. The children of Guatemala eat Spammy for the taste. They may not fully appreciate what the food’s biofortification does for them while they’re enjoying their meals, but their parents and teachers surely have noticed. “According to our local partners,” Hormel reported, “the children have more energy and their grades have improved.” Spammy fits right in to Guatemala’s native cuisine. The locals mix it with beans or serve it with tortillas. Other popular dishes involve pasta, pizza, and stew. This comes as no surprise. Spam has a remarkable history of cultural adaptation. Many Pacific Islanders, introduced to Spam by American GIs, consider meat-ina-can something of a delicacy. When Barack Obama visited Hawaii shortly after his presidential election in 2008, the media reported on the meal he sought out: “Spam musabi,” a Hawaiian dish that features grilled Spam and rice wrapped by seaweed. As a food producer and animal scientist, I’m always searching for new technologies and innovative approaches to feed our domestic and global consumers. Spammy provides a perfect example. It re-engineers an old manufacturing process and fits it to a modern need that meets all the environmental, economic, and social criteria for product sustainability. How long before Guatemalans and others discover the wonders of the Spammywich? Carol Keiser owns and operates cattle feeding operations in Western Illinois, Kansas, and Nebraska. She is a Truth About Trade & Technology board member and may be contacted at {www.truthabouttrade.org}. A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701
Catching insects for fun or profit People catch insects for all kinds of reasons. Some want to make an insect collection for a 4-H project or a school assignment. Others have an economic incentive for catching insects. That’s because there is a market for some insects, especially brightly colored beetles and butterflies that are used in art and design. Sometimes we try to capture pest insects to keep them from doing damage — for instance, Japanese beetles that feed on our plants or wasps and yellow jackets that inflict stings. Because of the human desire to capture insects, all kinds of contraptions have been developed for that purpose. Most insect-collecting devices fall into one of two basic categories. TOM The first TURPIN category could be called insect passive. That’s because the insect doesn’t have to do anything to be captured. The other type of insect capture device requires some action on the part of the insect to be successful. The most common insectpassive devices are the appropriately named capture nets. In popular language, capture nets are often called insect nets, bug nets, or butterfly nets. Most cartoonists make sure that they depict an entomologist with insect net in hand. The success of using a net to capture an insect depends on the ability of the person with the net. Swinging the net in the vicinity of the flying insect sometimes works. Another approach with the net is to drop it over the location where the insect — say a bee or butterfly on a flower — is perched. The net also may be swung back and forth in vegetation in an activity known as sweeping. Such action results in insects in the vegetation being swept into the net. The second type of insectcapture device depends on the behavior of the insect to make it work. Examples include sticky traps, glue boards, fly strips, and flypaper. Because flies like to land on vertical surfaces, especially suspended strips of material, a dangling fly strip is an
attractive resting site. Once the fly or other insect lands, it becomes entangled in the sticky material on the strip. Some sticky traps use a bait to attract the insect. One such trap is sold by Black Flag and called the Roach Motel. This was one of the first commercial sticky traps for insect control and utilized food, and later a cockroach pheromone, as bait to attract the roaches. Pheromones are chemicals produced by animals. These chemicals elicit a response from individuals of the same species. Some pheromones function to attract mates. These so-called sex-attractant chemicals are frequently used to lure insects into traps. The Bag-a-Bug traps for Japanese beetles use both a sex-attractant and a floral odor to entice the beetles. In this case, the flying beetles that are attracted by the odor crash into the wings of the trap and then fall into a collection bag suspended from the wings. Traps also are available to capture stinging insects, including wasps and yellow jackets. Most of these traps use chemicals associated with food items, such as meat or sugar for bait. Once lured into the trap, the wasps, like the cockroaches in the Roach Motel, can’t check out. In general, insect traps have not proven effective in controlling undesirable pest insect populations. To be sure, insects end up in the traps, but research has shown that the number captured is insignificant relative to the numbers causing the problems. However, sticky traps are effective for use in detecting the presence of insects or in estimating population levels. In this case the traps are important tools in insect management programs. Sticky material used in traps of this kind is commercially available and is appropriately called tangle foot. If you want to make your own sticky traps for catching insects, you can do it. But a word of warning from someone who has done it, tangle foot sticks on more than insects! Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.