ILLINOIS WHEAT ACRES are expected to climb this fall after dipping to 350,000 acres a year ago — one of the lowest totals on record. ............................................8
MONSANTO, originator of Roundup Ready soybeans, is working to ensure things go smoothly for growers and others when the soybeans go off patent. .................9
GROWMARK continued its r un of “g ood years” based on sales and income posted during the fiscal year that will end this week. .......................................12
Monday, August 30, 2010
Two sections Volume 38, No. 35
Gubernatorial candidates focus on ag, rural issues BY KAY SHIPMAN FarmWeek
A rural spin on education, the economy, and taxes drove the discussion as the two gubernatorial candidates addressed state ag leaders last week on a Bloomington farm. The Illinois Agricultural Legislative Roundtable heard
FarmWeekNow.com Video from the IALR’s candidate forum is available at FarmWeekNow.com.
the Democratic candidate, Gov. Pat Quinn, and his Republican opponent, state Sen. Bill Brady, discuss their platforms and answer audience questions in separate appearances. Quinn and Brady continued to differ sharply on income tax increases. Quinn repeated his support for raising income taxes to generate $3 billion for education. Brady countered the state must cut spending and live
within its fiscal means. After the audience question-and-answer period, Quinn told reporters he favors legislation that would require schools to reduce property taxes in return for more state aid. “If (schools) get more money for education, they have to agree to cut property taxes,” Quinn said. “I believe it should be mandatory ... I think you can pass such a law in Illinois.” Quinn said Brady’s proposal to cut state spending would put more pressure on districts to raise property taxes. Brady proposed the creation of an education property tax relief fund and funneling 10 percent of revenue growth into that fund. He said he also would save money by dismantling the Illinois State Board of Education and replacing it with a “downsized” department of education within his cabinet. Asked about Quinn’s proposal to require districts to cut property taxes, Brady dismissed the idea and added, “It sounds like a bunch of smoke and mirrors.” Both candidates highlight-
State Sen. Bill Brady
ed agriculture’s importance to the state’s economy. Quinn stressed the need to increase farm exports and said, as governor, he would promote Illinois ag trade. Brady focused on changes needed to make the state more business friendly and questioned why more time is needed to obtain permits to site ethanol and biodiesel
Gov. Pat Quinn
plants in Illinois than in other states.
U.S. senate candidates speak on ag issues — page 3 The candidates were asked what policies they would implement to encourage a vibrant livestock industry.
Brady answered he was more worried about overregulation of the livestock industry. The state already has in place strong livestock rules, he added. Quinn said the state “must make sure we cover the environmental front.” The state also must ensure its meat products are safe he said.
Variable subsidy offered as another ethanol option Periodicals: Time Valued
BY MARTIN ROSS FarmWeek
As congressional options begin to run thin for a stillevolving biofuels industry, a Purdue University economist offers one possible redesign for the ethanol “safety net.” Ag Secretary Tom Vilsack has pledged USDA support for congressional extension of the current 45-cent-per-gallon ethanol blenders tax credit. The credit for corn ethanol use expires Dec. 1, and Vilsack argued ethanol development “isn’t where it needs to be throughout the country.” A similar biodiesel tax credit continues to languish nearly nine months after its Jan. 1
expiration, as supporters continue to seek a tax or energy vehicle in which to include both biodiesel and ethanol credit extension. Amid industry uncertainty and continued media attacks on corn ethanol, Purdue University’s Wally Tyner has revived the idea of a “variable subsidy” which, Wally Tyner he argues, could reduce federal tax “costs” and provide more security for producers than do current fixed subsidy rates.
FarmWeek on the web: FarmWeekNow.com
“We could see ethanol plants close if the subsidy isn’t renewed in some form,” Tyner stressed, but he argued a variable rate would “insulate” biofuels producers from risk, because as oil and ethanol prices drop, the subsidy would increase. Under one scenario, no subsidy would be offered when oil prices reached a high of $90 per barrel. The subsidy would kick in at 17.5 cents per gallon when oil is at $80 and increase 17.5 cents for every $10 decrease in oil prices. Influential Republican U.S. Sen. Richard Lugar (R-Ind.) floated the concept a few years ago, but “it didn’t go any-
where,” Tyner told FarmWeek. But he sees shifting industry, political, and public dynamics spurring a rethink on the ethanol “safety net.” “Some folks felt they really got bad press when they were being blamed for high corn prices,” he said. “You had a subsidy that stayed at 45 cents even though oil was $140. The combination of that subsidy and high oil prices really kicked up demand for ethanol, which kicked up demand for corn.” Growth Energy, a coalition of ethanol companies and biofuels supporters, is floating See Ethanol, page 2
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, August 30, 2010
GOVERNMENT
Quick Takes FARM PROGRESS SHOW THIS WEEK — The Farm Progress Show, billed as “the nation’s greatest agricultural showcase” runs Tuesday, Aug. 31 through Thursday of this week. About 500 exhibitors at the event, which this year is in Boone, Iowa, will display new farm equipment, seed and crop protection products, and many additional farm supplies and services. Field demonstrations will be held each day to compare side-by-side tillage, GPS and precision equipment, and tractor and combine performance on hundreds of corn acres. Live cattle handling demonstrations will feature new chutes, equipment, and animal health products. The show also will feature restored antique machinery, arts and crafts, horse training demonstrations, and entertainment. For more information, visit the website {www.farmprogresshow.com}. LIVING WITH DEER WEBSITE — The Illinois Department of Natural Resources (IDNR) in cooperation with the University of Illinois Extension developed a new website with information about how to coexist with white-tailed deer. The site {http://web.extension.illinois.edu/deer/} focuses on IDNR’s strategy for managing the state’s deer population, deer damage prevention techniques, and the role that landowners and hunters can play in managing the deer population. “The cooperation of landowners and land managers, as well as cooperation among neighbors, is essential to maintain deer numbers at acceptable levels,” according to the site. EGG BOARD LAUNCHES SAFETY WEBSITE — The American Egg Board has established a consumer website {www.eggsafety.org} with information about the health and safety of eggs. “America’s egg farmers are deeply concerned about the recent recall of eggs due to possible salmonella contamination. America’s egg farmers are continuing to work closely with government officials to help ensure the safety and quality of the egg supply,” according to an Egg Board news release. Egg farmers and the Centers for Disease Control and the Food and Drug Administration food safety experts urge consumers to cook their eggs thoroughly because salmonella is destroyed by cooking heat. Eggs should be cooked until the whites and yolks are firm. Foods containing eggs should be cooked until they reach an internal temperature of 160 degrees Fahrenheit.
(ISSN0197-6680) Vol. 38 No. 35
August 30, 2010
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. 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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Congress may be best hope for clarifying permit issue BY MARTIN ROSS FarmWeek
A “legislative solution” appears the most promising option for shepherding farmers through the increasingly murky waters of federal pesticide regulation, American Farm Bureau Federation (AFBF) General Counsel Ellen Steen suggested last week. As the U.S. Environmental Protection Agency (EPA) last week continued to fine-tune its proposed permit requirements for application of aquatic, mosquito control, and selected forest chemicals under a federal court mandate, the Illinois Farm Bureau board considered the potential ag impacts of the agency’s latest regulatory actions. EPA’s proposed general National Pollutant Discharge Elimination System permit, aimed at regulating pesticide use on or near water, tentatively will be finalized by December and implemented by April 2011 in a handful of states. Other states are developing or are expected to develop their own permits, potentially using EPA’s permit as a model. The Illinois EPA reportedly is preparing a draft permit pending review of EPA provisions, with guidance from the Illinois Department of Agriculture.
A 2009 6th U.S. Circuit Court decision overturned a 2006 Bush administration rule that excluded a variety of pesticide applications from Clean Water Act regulations, as long as they complied with Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) label requirements. Essentially, the court ruled pesticide spray nozzle applications qualify as a pollution “point source” under the Clean Water Act, raising concerns about possible future ag chemical permitting. A proposal by Senate Ag Committee Chairman Blanche Lincoln (D-Ark.) and ranking member Saxby Chambliss (R-Ga.) would clarify that additional permits aren’t needed when a pesticide is applied according to the FIFRAapproved label. AFBF policy opposes ag pesticide permitting, and Steen argued that “properly interpreted,” the Clean Water Act has never applied to ag pesticide use — AFBF’s stance in recently submitted comments on EPA’s general permit. But although the record clearly indicates Congress did not intend to regulate ag permits when it created the act in 1972, legislation such as the Lincoln-Chambliss bill would provide “much needed clarification of congressional intent,” she said.
SIU helping Guardsmen work with Afghan farmers About 60 Illinois National Guardsmen heading to Afghanistan next spring will focus on farming after receiving hands-on training recently at Southern Illinois University (SIU), Carbondale, and the University of Illinois, Urbana. The newly formed Illinois Army National Guard Agriculture Development Team in workshops on SIU’s farms learned about animal health, nutrition and handling; soil quality and testing; basic crop production; and forages and vegetables suitable for Afghanistan. The soldiers will use this knowledge in the largely rural border province of Kunar in northeastern Afghanistan. “The National Guard has been sending agriculture teams around the world since the 1970s, but it’s new for Illinois — we’re still recruiting people,” said 1st Lt. William “Dan” Clark, an SIUC graduate stu-
dent in plant, soil, and agricultural systems and the team’s planning and operations officer. “In country, we will operate somewhat like an Extension Service, offering information and support for basic agronomic practices,” Clark said. “It will be up to them whether they take it and run with it.” “Typically, agriculture will employ 80 percent of the people while taking care of one of the essentials of life,” said Col. Fred Allen, Illinois team commander and a Delavan native who has a grain and livestock farm. “That contributes to the overall strategic objective of having a stable government and a stable society, while making it harder for the insurgents to recruit,” Allen said. While most members of the new unit have some agricultural expertise and previously have served overseas, the combination of agriculture and
Afghanistan is new. The guardsmen attended the U of I’s Agronomy Day and were recognized for their efforts by Bob Hauser, interim dean of the College of Agricultural, Consumer, and Environmental Sciences. At SIUC’s College of Agricultural Sciences, faculty members have been involved in projects aimed at rebuilding Afghanistan’s agricultural sector since 2003. John Groninger, the workshop coordinator, and forestry colleague Charles Ruffner worked in Afghanistan last year with a National Guard agriculture team. Workshop instructors will serve as a resource for the unit once it starts work overseas. “They can provide reach-back service, so if the team runs into problems in country, we can either solve it ourselves or refer them to someone else who can,” Groninger said.
“(Growth Energy’s) reaction may be, ‘We don’t lose anything in terms of the ethanol producer and gain something in terms of demand if we get more flexfuel vehicles and pumps,’” he suggested. “If (the U.S. Environmental Protection Agency) increases the blending limit, we’re out of the blend wall range for awhile. But that just buys you a few years; it’s not a long-term fix.
“They may be thinking that as a long-term solution, they’re better off with something on the demand side than with something on the supply side that’s not helping them.” However, whether Congress is willing or able to provide annual appropriations necessary to drive ethanol infrastructure development under the Growth Energy plan remains “a good question,” Tyner said.
Ethanol Continued from page 1 another option — phasing down the corn ethanol credit in favor of federal incentives for expanded retail ethanol infrastructure and mandated production of flexible-fuel vehicles. As long as the industry faces a 10 percent ethanol “blend wall” for conventional gasoline, the credit “goes to the blender and the consumer,” not producers, Tyner said.
FarmWeek Page 3 Monday, August 30, 2010
GOVERNMENT
Senate candidates seek farm estate tax relief BY MARTIN ROSS FarmWeek
As Illinois Farm Bureau girds for a September push on Capitol Hill, a McLean County farmstead last week became the latest site in the battle for federal estate tax relief. At last week’s Illinois Agricultural Legislative Roundtable Candidates Forum near Bloomington, Alexi Giannoulias and Mark Kirk, respective Democrat and Republican candidates for the U.S. Senate seat being vacated by Roland Burris, noted producer concerns about the potential return of the estate tax Jan. 1. If Congress does not act by year’s end, the currently dormant tax will be reinstated at pre-2001 levels, with a $1 million individual exemption and a high 55 percent rate. The estate tax “expired” last
Dec. 31 at a $3.5 million individual/$7 million-per-couple exemption. Given a more than doubling of Illinois farmland values over the past decade, a $1 million exemption purportedly would require 10 times more farm estates to file estate tax returns next year than in 2009, based on USDA figures. Giannoulias, currently Illinois’ state treasurer, favored permanent restoration of the tax, arguing the need to address “exploding deficits,” but indicated he would support exempting farms valued at less than $10 million to ensure multi-generational operations “are not indirectly damaged by the estate tax.” Kirk, a Highland Park congressman, favored “death tax” elimination or at least “as low a (tax) rate as I could get,” to “prevent this shock from hit-
ting the economy.” The House last year voted to restore the estate tax at 2009 levels, and with a 45 percent tax rate. Senate Ag Chairman Committee Blanche Lincoln (DArk.) and Sen. Jon Kyl (RAriz.) propose setting a $5 million individual/$10 millionper-couple exemption, adjusted annually for inflation, and a 35 percent rate. Illinois Farm Bureau is mobilizing members to contact senior Sen. Dick Durbin, a Springfield Democrat, and Burris, a Chicago Democrat, to seek support for the Lincoln-Kyl measure. As part of a planned Sept. 14-16 phone campaign, producers are being asked to relate how a return to a $1 million exemption and a 55 percent tax rate would affect their family and/or operation.
Report anhydrous spills to emergency services BY KAY SHIPMAN FarmWeek
Mark Kirk
Alexi Giannoulias
Senatorial sentiments Respective Democrat and Republican U.S. Senate candidates Alexi Giannoulias and Mark Kirk focused on key farm and rural issues at last week’s Candidates Forum. Ag and the economy Giannoulias: “My plan gives families the stability needed to navigate the highs and lows of a seasonal business while ensuring safeguards are in place to keep corporations from squeezing family farms.” Kirk: “I would like to sit on three (Senate) committees: Commerce, because it has control over the infrastructure that’s so critical to the State of Illinois; Banking, because of the financial sector and how many jobs (within it) are connected to the Chicagoland area; and Agriculture, because it plays such a role in our economy and employment picture.” Energy and ethanol Both candidates supported extension of ethanol and biodiesel tax credits and federal approval for a higher 15 percent ethanol blend (E15) level in conventional gasoline. Giannoulias: “We should extend the (electric) transmission grid into our rural areas, so that we can export wind, solar, geothermal, and biofuels resources to where energy is in greater demand. The result would create
clean energy resources nationwide and sustain new jobs for America’s farmers, ranchers, and small businesses.” Kirk: “I’ve led the fight against this idea of indirect land use (for corn and biofuels production) ending ethanol’s status as a renewable fuel ... I also support the move to E15: I know we have an interim step to E12 (available), but let’s just go to E15.” Trade Giannoulias and Kirk support Panama, Colombia, and South Korea free trade agreements, though Giannoulias argued the latter should be approved only after Korea “fully complies with international rules” regarding beef imports. Giannoulias: “Free trade, when done right so everyone’s playing by the same rules, is beneficial for the American economy and American agriculture. Expanding market opportunities is critical to agricultural competitiveness and meeting growing world demand for food with American agriculture.” Kirk: “Canada is the No. 1 purchaser of Illinois exports. I do not think we should start a trade war with Canada (by renegotiating the North American Free Trade Agreement). I think, instead, we should focus on opening up new markets, particularly the Colombian corn market, which is increasingly being denied to Americans.”
Farmers by law must report spills of 100 or more pounds of anhydrous ammonia to the local emergency responders, the Illinois Emergency Management Agency (IEMA), the National Response Center (NRC), and their local emergency planning committee. After IEMA is notified about an agriculture-related spill, the agency contacts the Illinois Department of Agriculture (IDOA). IDOA then sends an inspector to the site a day or two after the spill, according to Jim Larkin with IDOA. “Farmers handling anhydrous need to remember to slow down and think about how to handle it in the safest manner possible,” Larkin said. In case of a spill of 100 or more pounds, a farmer must report the incident as soon as possible by calling IEMA at 800-782-7860. The reporting number for NRC is 800-424-8802. Local emergency responders and local emergency agencies vary from county to county. The telephone numbers to make local reports are available by calling IEMA’s 800 number. It is important to notify emergency services as soon as possible after the spill. When reporting a spill, a farmer will be asked the name of the chemical and if it is extremely hazardous; an estimate of the amount spilled; time and duration of the spill; specific locations; whether the chemical reached land, air, or water; any known or anticipated health risks; precautions needed; and the name and telephone number of a person who should be contacted for further information. After an IDOA inspector visits the site, he or she will write a report that is sent to IEMA and the Illinois Environmental Protection Agency.
FarmWeek Page 4 Monday, August 30, 2010
GOVERNMENT
Plan seen as crucial to river project flow BY MARTIN ROSS FarmWeek
Attempting to move key navigation improvements without a better way to fund them likely would leave future river users high and dry, an industry spokesman warns. Ag and other commercial shipping interests are concerned by the U.S. House Transportation and Infrastructure Committee’s failure to include a U.S. Army Corps of Engineers/industry Inland Waterways Capital Development Plan in its proposed 2010 Water Resources Development Act, also known as “WRDA 2.� The plan aims largely to replenish the Inland Waterways Trust Fund, a repository for barge fuel taxes which provides 50 percent funding for lock construction and rehabilitation. According to Waterways Council Inc. (WCI), the fund currently operates on a barebones, “cash-in/cash-out� basis, funding routine lock maintenance and even some
non-navigational projects. The development plan agrees to as much as a 45 percent hike in diesel taxes in exchange for focusing trust fund revenues on lock upgrades and modernization. Lawmakers return to the Hill in mid-September for preelection debate and then a possible post-election “lame duck� session. WCI urges House members to encourage Transportation-Infrastructure Chairman James Oberstar (DMinn.) to allow WRDA 2 amendments on the floor while raising visibility for the issue in the Senate, WCI Vice President Paul Rohde told FarmWeek. “Realistically, we may have to look at ‘WRDA 2011,’ with a new Congress,� Rohde said. “I’d be very surprised if the lame duck session saw WRDA (action) in the Senate. “That’s not to say they’re not working on it — they certainly are — but Congress is trying to focus on a lot of issues. We’re continuing on as if WRDA is possible this year,
asking members on the House side to continue outreach to Oberstar, so he hears the plan is preferred. “Detractors (of the plan) will tell you this is ‘corporate welfare’ and so forth. They ignore the fact that the industry is willing to put on itself a 30-45 percent increase in the existing (fuel) tax. Six to nine cents a gallon is nothing to sneeze at.� The administration has not yet commented on the proposed plan, and the committee was still reviewing details at Congress’ August adjournment and thus may have been reluctant to delay approval of the larger water package, Rohde said. Rohde also cited some opposition to the plan’s proposal to discontinue use of waterway trust fund revenues for dam construction and repair. While dams benefit manufacturers, utilities, recreational users, and others, private costs for construction lies “on the shoulders of the transportation industry,�
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diverting prospective lock funding, he said. In addition, under the plan, the industry would help fund only major lock rehabilitation projects that exceed $100 million — an effort to counter the increased use of trust fund revenues for routine lock repairs. The plan also seeks federal funding on a project-by-project basis, rather than on an annual spending basis at the
whim of Congress. According to Illinois Farm Bureau transportation specialist Kevin Rund, the current funding practice is inefficient and delays project completion. Industry share of a project’s cost would be limited to its original cost estimate plus inflation. That would serve as an incentive to keep projects on budget and avoid cost overruns resulting from delays, Rund argued.
River re-evaluation could pose threat to river commerce Had America’s development moved west to east, Paul Rohde observes, the Mississippi River could well have been named the Middle Missouri. Such is the Missouri’s influence on Mississippi River commerce and communities. That’s why Illinois producers and officials are anxiously monitoring continuing U.S. Army Corps of Engineers “scoping sessions� that could shape future Missouri River management and impact Midwest barge transportation and even Western Illinois flood control efforts. Missouri River discharges account for as much as 60 percent of the Mississippi’s waters south of the convergence of the rivers north of St. Louis, “especially in times of low water,� according to Rohde, national Waterways Council Inc. (WCI) vice president. Missouri management is “absolutely critical� to the “Middle Mississippi� — the stretch of the river from St. Louis to its confluence with the Ohio River. The 1944 federal Flood Control Act identified navigation and flood control as major purposes of the Missouri River system. But Sen. Byron Dorgan (D-N.D.) and others seek to end navigational support on the Missouri and favor holding water back in Upper Missouri Basin reservoirs for recreational boating and fishing, Rohde said. In WCI’s view, that would benefit only “a small minority of the population of Missouri River users.� However, Rohde said comments at recent Rock Island, Des Moines, and St. Louis scoping sessions were “overwhelmingly supportive� of a strategy that considers broader impacts for the Upper Mississippi. “When you look at the impact of (commercial) Mississippi River traffic, it just dwarfs the purported economic benefits of Upper Missouri Basin recreation, which, I think, have been inflated,� Rohde told FarmWeek. “Certainly, there’s more traffic on the Mississippi, and the Mississippi needs Missouri River water. If you’re going to look at the authorized purposes of the Missouri, you have to be comprehensive, and part of being comprehensive is recognizing the impact the Missouri has on the Mississippi.� The Corps is soliciting comments on Missouri River priorities through mid-September as part of a five-year study spearheaded by Dorgan. The Corps values recreation on three key Missouri reservoirs at $34.2 million annually, compared with a roughly $4 billion in estimated annual economic benefits related to navigation on the “Middle Mississippi.� In an average year, 120 million tons of cargo, valued at $14 billion, moves between St. Louis and Cairo. If Missouri navigation is not supported, “flow support� on the river would drop significantly in the fall, resulting in a nearly three-foot reduction in potential barge draft depth at the Port of St. Louis, WCI warns. Summer reductions could be a foot or more, and, according to WCI, Mississippi commerce could be “dramatically impacted� during both seasons. In recent years, low water levels have prompted some Corps restrictions on barge loadings in the Middle Mississippi region, Illinois Farm Bureau transportation specialist Kevin Rund noted. Drought conditions increase the need for Missouri River flows for navigation purposes, he said. “We’re dependent on that Missouri River flow to keep the Middle Mississippi open,� Rund advised. — Martin Ross
FarmWeek Page 5 Monday, August 30, 2010
FERTILIZER
Fertilizer retailers prepare for busy fall season BY DANIEL GRANT FarmWeek
Fertilizer retailers have replenished supplies or are in the process of doing so in anticipation of a busy fall season. That was the main message conveyed this month by retailers who were in Bloomington at the Midwest Ag Industries Exposition (MAGIE) coordinated by the Illinois Fertilizer and Chemical Association. “We’ll have everything full and as much (fertilizer inventory) as we can handle,” said Rick Hartke of Effingham Equity. “Hopefully, we’ll have a more prolonged season than last year.” The window for fall fertilizer applications last year was as short as a week to 10 days in some areas of the state due to harvest delays and wet weather. Harvest of the wet crop last
year through October in Illinois was just 14 percent complete for corn and 33 percent complete for soybeans, which was the slowest pace for soybeans and second-slowest pace for corn on record. Fall fertilizer applications, as a result, were down anywhere from 30 to 40 percent, according to Tom Cowherd of Elburn Co-op in Newark, to as much as 80 percent, according to John Richey of Evergreen FS in Eureka. The slow harvest was followed by a swift planting season resulting in spot fertilizer shortages and application delays. “It was ugly,” Cowherd said. “We had an increase in 32 (nitrogen fertilizer composed of urea and ammonium nitrate known as UAN) and dry tonnage for spring applications and it still wasn’t enough to make up
Todd Frish, an employee of ag spray application equipment manufacturer Miller St. Nazianz Inc. of Wisconsin, points to new features of a sprayer to Jeff Johnson, an applicator and farmer from Cottonwood, Minn., during the Midwest Ag Industries Exposition. (Photo by Daniel Grant)
for what we lost in the fall.” This year, retailers believe the rapid maturity of the corn crop combined with the recent stretch of hot, dry weather will be much more conducive to a good harvest. “I think it (harvest) will be a lot sooner this year, particularly
for corn,” said Richey, who believes a smoother harvest will translate into a more productive fertilizer application season. “I don’t think there will be a shortage (of fertilizer).” Ag retailers noted fertilizer application equipment over the years has increased in size and
efficiency to keep up with similar trends in production agriculture. About 90 exhibitors promoted and demonstrated their products to about 2,000 attendees at MAGIE. “Applicators probably can cover three to four times as many acres (per day)” as they could 10 to 20 years ago, Richey said. Fertilizer prices in Illinois crept up this month for urea, liquid nitrogen, potash, and diammonium phosphate (DAP). Prices in the state as of Aug. 19 averaged $437 per ton for urea, $268 per ton for liquid nitrogen, $509 per ton for DAP, $491 per ton for potash, and $584 per ton for anhydrous ammonia, according to the biweekly Illinois Production Cost Report issued by USDA.
Fertilizer production shift could be costly for farmers U.S. fertilizer production took another hit last week as 140 workers were laid off at a Mosaic Co. phosphate mine in Florida. The layoffs stemmed from a legal challenge of Mosaic’s attempt to expand its mining operations in Florida. The U.S. Army Corps of Engineers previously issued a permit to Mosaic to expand its mine, but the Sierra Club and other environmental groups won a lawsuit that blocked the expansion. At least 18 companies that do business with Mosaic reportedly could lay off hundreds more workers and lose at least $80 million in revenue if the preliminary injunction becomes permanent. The U.S. is a net exporter of phosphate, but Jean Payne, president of the Illinois Chemical and Fertilizer Association (IFCA), is concerned the situation in Florida is part of an ongoing trend in which fertilizer production is moving away from the U.S. That trend could be costly for U.S. ag retailers, farmers, and even consumers as the cost to grow crops continues to escalate, she said. “The loss of fertilizer production in the U.S. is happening right in front of our faces,” Payne said. “We’ve been a net exporter of phosphate, but circumstances like this send a message that down the road we could become a net importer of phosphate.” The situation already has occurred in other fertilizer markets. “Ten years ago we were manufacturing 80 percent of nitrogen fertilizer (consumed in the U.S.),” Payne said. “Now
we’re below 50 percent. We’re no longer a primary market.” About 50 percent of the current ammonia plant capacity is located in Asia. China and India consume about 44 percent of all nitrogen fertilizer in the world compared to just 11 percent in the U.S. The shift in fertilizer production and use patterns means the U.S. will face more competition for fertilizer in the future, according to Joe Kilgus, area sales manager in Southern Illinois for GROWMARK. “The U.S. has become a small player (in the fertilizer market),” Kilgus said last month at the Illinois Farm Bureau Commodities Conference. To acquire or keep fertilizer stocks “the U.S. has got to outbid the competition.” And the competition for fertilizer is fierce. BHP Billiton this month made a hostile bid for Potash Corp. of Saskatchewan. The Potash Corp. board recommended its shareholders reject the hostile takeover bid, which could shake up a potash market dominated by just a handful of players. Canada, Russia, Belarus, Germany, Israel, and Jordan reportedly account for 90 percent of the world’s potash supply. Meanwhile, increased regulations and proposed legislation are making it even more difficult for fertilizer companies to expand in the U.S., according to Payne. “The more regulations we have the more businesses are forced to expand their bases to raise money to comply,” Payne said. “That’s why we see fertilizer companies getting bigger and merging.”
On the legislative front, proposed cap-and-trade legislation could increase the production of electricity from natural gas,
which is a key ingredient for nitrogen fertilizer production. The cost to produce an acre of corn could increase by an
estimated $33 per acre by 2020 if cap-and-trade legislation becomes law, according to IFCA. — Daniel Grant
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FarmWeek Page 6 Monday, August 30, 2010
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Another nice week with some cooler, less humid, more comfortable weather moving in here on Wednesday. We received 0.75 of an inch of rain Aug. 20 to keep everything green and growing. By the time you read this, there will be some corn being harvested for silage here in Winnebago County. It’s pretty unusual to start in August, but that’s how far ahead of average this growing season has been. The corn is definitely ahead of schedule and looks very good. Soybeans also look very good but may not be as far ahead of schedule as the corn. It likely will be the last week in September before soybean harvest will start, and there will be some corn harvested before that. Leroy Getz, Savanna, Carroll County: Rain of 0.05 of an inch fell on Aug. 20. The eastern part of the county had as much as 1 inch with high winds that pushed down some corn. The August total so far is 4.75 inches. Dry, cooler days let everyone make hay and chop corn silage. Preparations for harvest are being finalized. Many bins still need repairs. Ron Frieders, Waterman, DeKalb County: As crops continue to mature, one only can speculate on yields. Early planting and good rains have crops off and running. But good rains quickly turned into big rains, drowning out and stunting areas across all fields and leaching away nitrogen. Record-breaking continuous daily high temperatures were stressful to crops as well. Sudden death and other diseases also are prevalent in beans fields. It looks like we will see very good to very bad yields in the same round. Joe Zumwalt, Warsaw, Hancock County: It was a beautiful week in Western Illinois. Temps were pleasant and we had excellent dry down weather for the corn. Harvest is just moments away for many in the area. Many farmers are thinking that the day after Labor Day will be the magic day to begin. Let’s keep our fingers crossed that we have more normal harvest weather for the fall season. Early yield estimates are all over the board, but I believe most are a bit lower than what we were expecting just a few weeks ago. Soybeans continue to develop and early-planted fields have some excellent potential. So far, not much sudden death syndrome has shown up, but there is still time. Several farmers are chopping silage, many are finishing mowing, as well as last minute prep work for the fall season. Don’t forget that the Farm Progress Show is this week. Ken Reinhardt, Seaton, Mercer County: We had storms and around 0.5 of an inch of rain last Friday (Aug. 20). I have seen one soybean field starting to change color from maturity. All the rest is sudden death. Most every field is affected to some extent, some severely. There will be some corn harvested this week and there are fields completely brown. There is more corn borer damage in refuge corn than we have had in several years. The University of Illinois is not going to do a survey of them this year, saying they are not a problem anymore. The university’s budget concerns may be the real reason. Tim Green, Wyoming, Stark County: It was a very, very pleasant week — one of the nicest we’ve had all summer. A little corn harvest has started in our area. Overall, yields are disappointing — anywhere from 25 to 15 bushels below a year ago. I hear a lot of 150 numbers. We had a lot of water early, and that probably hurt us more than we thought. Moisture levels seem to be pretty good and are coming down. A lot of corn is in the mid-20s right now, which is better than last year at the end. Some sudden death is starting to show up in our beans. Some who didn’t have it all of sudden have it. We are trying to figure what to do for next year. A lot of people will start picking corn right after the first week of September.
Ron Moore, Roseville, Warren County: No rain to report. We did start chopping corn silage last Tuesday. There should be some corn being harvested after Labor Day. There are no soybeans turning yellow yet, although we do have some minor sudden death syndrome symptoms showing up. We are moving cattle home from pastures now since harvest will be in full swing in two weeks.
Carrie Winkelmann, Menard County: We received 0.8 of an inch of rain Aug. 20 and had mostly cloudy conditions the next day. The rest of the week had beautiful drying conditions. Corn is drying and I think the late heat this summer has kept the diplodia from taking over fields, although its presence will still be felt. Late beans are chest high with pods filled out all the way to the tip top. Early beans are starting to turn.
Mark Kerber, Chatsworth, Livingston County: As we are on the eve of harvest, farmers are busy finishing up preparing their machinery. Many are mowing roads for the last time and attending seed and agronomy meetings. Crops are ripening fast with sunny days and lack of rain. Most farmers are saying they are waiting until after Labor Day to start. Some soybeans are turning, and we have had a year with no aphid problems. Sudden death has been a problem in some areas, but not around here. Wheat producers are saying that finding seed wheat will be a problem, as it is in very short supply. If you have a bit of wheat around, it is very good property. With an early harvest and if it stay relatively dry, we should have time to chisel up last year’s ruts and compaction. Slow down and enjoy the harvest.
Tom Ritter, Blue Mound, Macon County: Combines started to roll last week, but on a very limited basis. They are finding corn with moisture in the low 20s, but the majority is well above 25 percent. There will be a major push in the coming week. No reports yet on yields, but the crop looks like it will be very good. Maybe not bumper, but at least average or slightly above. Some soybeans have yellow leaves, some of it maturing and some of it from sudden death and other diseases. Rainfall on the two previous weekends may have added substantially to the yields. Farmers seem more optimistic on bean yields than they do corn yields. There are pockets of corn that will be hurt by standing water from the heavy rains last June. Also, yields will suffer in areas with some wind damage, but overall farmers seem optimistic it will be a good year. Farmers are in the midst of their last-minute scramble to ready their equipment and get ready for the major push in the coming weeks.
Ron Haase, Gilman, Iroquois County: We received 0.2 to 0.3 of an inch of rain on Aug. 21. This is the only rain we have received over the last two weeks. Farmers continue to attend plot tours and prepare their machinery for the upcoming harvest. Cornfields are in the either the R5 or R6 growth stage. The range is from the milk line being 40 percent of the way down the kernel to a hand sample test of 18 percent moisture. The driest corn that I tested dried 4 percentage points over the past week. There have been reports of some corn harvested, but nothing in the nearby area. Most soybean fields are in the R6 growth stage with a few about to move on to R7 which is beginning maturity. Local closing prices for Aug. 26 were nearby corn, $3.88; new-crop corn, $3.89; nearby soybeans, $10.28; new-crop soybeans, $9.86. Brian Schaumburg, Chenoa, McLean County: Another dry, albeit cooler, week, and some corn has been harvested with varying results. 101- to 107day corn is in the 140- to 200bushel-per-acre range. Moisture is 17 percent to 32 percent. Foliar fungicide applications have kept the crop intact and resulted in a higher moisture content. Continuous corn lags in yields by 12 to 20 percent compared to those following beans. Stalk quality is another concern on unsprayed fields. Beans will be ready in 10 days to three weeks. Corn, $3.86, fall, $3.88; beans, $10.25, fall, $9.69; wheat, $5.97. Steve Ayers, Champaign, Champaign County: On Aug. 20-21, we were blessed with a 0.9 of an inch “million dollar bean maker” rain. USDA topsoil moisture report still has our crop reporting district 28 percent very short, 40 percent short, and 32 percent adequate with 5 percent of our corn mature. A few combines are rolling as elevators are offering reduced drying rates. Ideal drying conditions continue with temperatures near 90 degrees and minimal moisture opportunities. A few soybean fields are yellowing and drying rapidly. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: It was a dry week in our little corner of the state, and crops are maturing at a fairly rapid rate. Some have started chopping for silage, but there are no combines running just yet close by. Early beans are looking good with a lot of pods already filled. Later beans are catching up. The hoppers seem to have enough to eat along field edges and waterways. General mowing, cleaning bins, getting machinery ready, and the usual farm chores seem to be the norm at our place. Stay safe as the harvest race is about to begin.
Todd Easton, Charleston, Coles County: A very few combines, including my own, have been working on cornfields since the mid to late part of last week. From what I have seen so far, not too many records will be set in our area. Another less-thandesirable finding is the stalk quality in several fields is not very good and should be watched closely. Some of the earliest-planted soybean fields have began to turn colors and could see a combine in two weeks or so. I have been pleasantly surprised with how well most of the beans have filled out in spite of the hot and dry conditions. Hopefully, next week I will be more optimistic about what is out in the fields as we get into different fields and later varieties. Good luck and best wishes for your harvest season. Jimmy Ayers, Rochester, Sangamon County: We received a 2.5 inch rain on Aug. 20. Spots in the area received up to 5 inches. There was some flooding of the smaller streams. Several guys started shelling corn. Yields I have been hearing is fall-applied nitrogen corn is around 150 to 170 bushels per acre. Spring-applied nitrogen appears to be showing a little better with a an average a little above 200. There is quite a bit of difference in the YieldGard VTTriple (VT3) corn, compared to the original corn. The cheaper corn has out-yielded the VT3 at this point. That may change as we go along. The Sangamon County Farm Bureau Young Farmers did a yield check on Aug. 20. Eighty samples were taken across the county. There was a low of 125.6 and a high of 229.4. The average was 177.2. The average in 2008 and 2009 was right around 180. The report didn’t really factor in the heavy rains and the drowned out areas or the ponded areas. The rain the past two weeks probably helped bean yields. They are still looking good and we are not seeing much disease. We are hearing a little bit about diplodia in the corn. We are seeing up to 2 and 3 percent, with damage on new corn as high as 10 percent in one sample. Doug Uphoff, Shelbyville, Shelby County: Corn harvest has started in Shelby County. I have heard yields all the way from 205 bushels an acre down to 100 bushels per acre. I’m sure we are going to find that all in the same fields. Around here, we haven’t harvested enough to give a good average, but moisture levels are relatively low as compared to last year. We are down in to the 19- to 22-percent range. Beans have begun to turn. Prices for the area: diesel, $2.47; farm diesel, $2.94, truck diesel, $2.60. Grain prices: cash corn, $4.11, January, $4.36, in Decatur, $10.70; beans in Decatur, $10.43. Findlay elevator prices are $3.91, January, $4.12; $10.32 for now; $10.10 for January. I’m sure by this week there will be a lot of guys going in corn. Be safe out there.
Page 7 Monday, August 30, 2010 FarmWeek
CROPWATCHERS David Schaal, St. Peter, Fayette County: Had a storm blow through here early in the morning of Aug. 21. It produced a welcome lifesaving rain for our soybeans. Right around the immediate area, rainfall totals range from a half an inch up to 2 inches. Places in the county had up to 3 inches. My gauge caught 1.3 inches of rain. There is a handful of producers nibbling on some corn. No yield reports yet. Moisture I am hearing is 16.5 percent on up to 25 percent. Soybeans are still grass green. They would stand another rain to help pod fill and increase bean size. Farmers are scrambling to get bins, combines, trucks, etc. ready for harvest. The corn crop has dried down rapidly. I assume a lot will be going hot and heavy with corn harvest within a few days. Ted Kuebrich, Jerseyville, Jersey County: Jersey County received about 2 inches of rain the first part of the week. Along with the hard rain, we had some wind that twisted and blew down some corn. Some of the corn that went down had some rootworm damage. The rain is putting the finishing touches on a great bean crop. This is a busy week in Jersey County for some with baling hay, filling silos, and the last couple of days starting to shell corn. Jersey County Grain, Hardin, said that it is getting in new corn with moisture testing as dry as 17.5 percent. A couple of other farmers said that they plan to start the first part of this week. Prices at Jersey County Grain, Hardin: August corn, $3.75, October corn, $3.90, January 2011 corn, $4.31; August 2010 beans, $10, October 2010 beans, $9.85, January 2011 beans, $10.31.
Dan Meinhart, Montrose, Jasper County: A very pleasant week. Temperatures were cooler and the humidity was lower. General rains moved through the area Aug. 20 leaving 0.4 to 0.8 of an inch. It was a very welcome rain. Silage making is moving along rapidly. Corn shelling has started in a few locations. Farmers continue to clean grain bins, mow road ditches and waterways, and repair machinery in preparation for harvest. A warming trend is expected for this week.
Kevin Raber, Browns, Wabash County: Rainfall was a little over an inch this past week. It was welcome, but the soybeans could use more moisture. Corn harvest has started. I haven’t heard yields, but moisture levels of 18 percent or less have been common. The hot, dry weather has really taken the moisture down on the corn. I was going to start after Labor Day, but I believe I’m going to move that up by a week after the moisture levels I have heard.
Bob Biehl, Belleville, St. Clair County: Corn harvest is fast approaching. A few isolated areas have a field or two shelled off. Moisture levels I’ve heard were below 20 percent. Around here, there are two fields shelled off, but most producers are finishing equipment maintenance and grain bin work. Beans continue to look really good with the last few rains we have had. In some fields, sudden death syndrome is showing up, but it is not too bad. Markets are still trying to figure out which way the yields will go.
Ken Taake, Ullin, Pulaski County: We finally had an inch of rain on Aug. 21. It was really a wonderful rain, and it will help the soybeans. I don’t know much, they were so stressed already, but time will tell. It certainly improved everybody’s attitude a little bit, at least. Young Farmers did their yield tour in Pulaski and Alexander counties, and in Pulaski County, they came up with yields from 84 to 178 with an average of 136 bushels per acre. In Alexander County, yields ran from 85 up to 156 with the average of 129. Of course, these yields are way down from normal. We shelled a little corn on the ends Thursday. Moisture ran from 17 to 23 percent. It looks like yields are going to be below average, but maybe not as poor as we thought. At least there is some corn out there. Alfatoxin has been a real concern in the area. Local elevators are testing every load for alfatoxin, and a lot of corn is getting rejected. Having every load tested is really slowing down the lines at the local elevator, so it looks like it’s going to be a slow harvest. Please remember to be careful as we get into this busy season. Take time to be safe.
Rick Corners, Centralia, Jefferson County: Now it’s too cool. Just kidding. Hard to believe it was 45 degrees cooler Friday morning than it was Aug. 20. We had a dandy 2-inch rain early Aug. 21. It was just in the nick of time for the beans. The day before, they looked like they were on their last breath. Corn harvest probably will get started this week. Reports received Friday morning. Expanded crop information available at FarmWeekNow.com
Harvest off to early start at scattered locations BY DANIEL GRANT FarmWeek
Harvest got off to an early start last week at scattered locations around the state as farmers took advantage of nearly ideal weather conditions. High heat and humidity this month sped up the maturation process of corn, and initial reports indicated some moisture readings last week ranged from the high teens to the upper-20s. However, the majority of corn last week still was above 25 percent moisture, according to Tom Ritter, a FarmWeek Cropwatcher from Macon County. “Combines started to roll
last week but on a very limited basis,” Ritter said. Jerry Daniel, a farmer from the Pittsfield area in Pike County, last week by Thursday had harvested about 90 acres of corn. Moisture readings were around 25 percent on Monday (Aug. 23) and were down to 22.5 percent by Thursday, he said. “I’m already off to a better start than last year,” said Daniel, who didn’t start shelling corn last year until late September. “Yields (so far this year) are pretty close to what I expected.” Crop development as of last week was well ahead of last year and the five-year
average, the National Agricultural Statistics Service Illinois
about 70 percent last year and the average of 89 per-
‘Yields (so far this year) are pretty close to what I expected.’ — Jerry Daniel Pike County farmer
field office reported. Thirteen percent of the corn crop was mature a week ago compared to zero at the same time last year and the average of 5 percent. Meanwhile, 92 percent of soybeans last week were setting pods compared to
cent. Statewide precipitation the third week of August averaged 1.01 inches, three-tenths of an inch above average. David Schaal, a Cropwatcher from Fayette County, credited the mid-August moisture with being a “lifesaving rain for our soybeans.”
Looking ahead, AccuWeather.com predicted warm conditions will continue to prevail in the upper-Midwest. The forecast called for temperatures to remain above normal for the next six to eight weeks with highs in the 80s to near 90. “If the pattern holds as expected, we could be looking at a near-record crop,” said Dale Mohler, Accuweather.com ag meteorologist. “Some of the best yields may come out of Minnesota and northern Iowa, north of the previously saturated areas.” A number of Cropwatchers reported harvest activity will intensify this week with a big push expected after the Labor Day weekend.
Are low test weights a major cause for concern? As the 2010 Illinois corn harvest gets under way, some farmers are expressing concern over test weights that are lower than they expected. “Many people think test weights in the lower 50s are an indication that yield has been lost, and that there may be other problems they didn’t foresee, said Emerson Nafziger, University of Illinois Extension agronomist. “In many cases, kernels will seem sound (unlike those from many fields in 2009), even when test weights are 3 or 4 pounds below the standard 56 pounds per bushel.”
So what are these low test weights indicating? Nafziger said it’s important to distinguish test weight from kernel weight. If yields are high, kernel weights can be normal, even if test weights aren’t. But if poor filling conditions result in shrunken kernels, such kernels may not fit together very well, and both kernel weight and test weight can be low. Test weight, which is technically “bulk density,” is a complex measurement, including factors such as slipperiness of the seedcoat, kernel shape, endosperm density,
and even the size of the embryo. There are hybrid differences, but growing conditions also affect test weight. In general, correlations between yield and test weight are not very high, said Nafziger. “In 2009, starch filled very slowly, and in some cases didn’t fill to the maximum extent before freezing ended the process,” he said. “That’s not likely in 2010, except in some areas where dry weather could bring an early end to grainfill. “It’s possible that the rapid filling in 2010 resulted in slightly lower density of starch ‘packing’ into the
endosperm than normal. This directly lowers test weight, and may or may not result in lower kernel weights. And it’s kernel weights that determine yield.” For the same reason, he believes endosperm density may not be quite as high as usual this year and that this might affect usefulness of corn as a food-grade crop. On the plus side, grain will dry down well in the field and farmers are not likely to see the high-temperature drying problems such as stress cracks and broken kernels that were problematic in 2009. “Test weight affects pres-
sure plate readings on yield monitors, so it will be important to calibrate yield monitors for this year’s conditions,” Nafziger said. “Instead of focusing on possible lost yield, focus on the big picture. “Yield per acre is the product of kernel number times kernel weight. Yields are the only meaningful measure of the growing season. If kernels are sound and of normal weight, but test weights are several pounds below normal, we have little to complain about,” he said. For more information, read The Bulletin online at {http://ipm.illinois.edu/bulletin}.
FarmWeek Page 8 Monday, August 30, 2010
WHEAT
Wheat acres expected to rebound in Illinois BY DANIEL GRANT FarmWeek
Illinois wheat acreage is expected to bounce back this fall after dipping to one of the lowest totals (350,000 acres) on record a year ago. Producers in Illinois the previous two years seeded 1.2 million acres in the fall of 2007 and 850,000 acres in the fall 2008. Steve Ebelhar, agronomist at the University of Illinois Dixon Springs Agricultural Center, attributed the sharp drop in wheat plantings last year to a “triple-whammy� of a wet spring that delayed corn/soybean planting, a cool summer that delayed development of the row crops, and a wet fall/late harvest that narrowed the
window for fall fieldwork. The fact that wheat prices in September 2009 averaged just $3.25 per bushel also didn’t help matters. This year, corn harvest already is under way at scattered locations and is expected to progress rapidly. Wheat futures prices, meanwhile, recently surpassed $7 per bushel. “We’re certainly not going to be delayed by (corn) harvest,� Ebelhar said last week at the Illinois Wheat Forum in Highland. The event was coordinated by the Illinois Wheat Association. “And now we’re looking at increased prices (compared to a year ago). That probably will encourage more wheat acres to be planted.�
Homer Braklane, a wheat grower from Macoupin County, this fall plans to stick to his typical rotation and plant wheat on one-third of his acres. “I got it in last year, but I didn’t finish until Nov. 6. I never planted (wheat) in November� before last year, Braklane said. “This year, I think we’ll go back to average wheat acres� in Illinois. If farmers plan to significantly boost wheat seedings compared to last fall, Ebelhar said they should resist the temptation to plant too early. Farmers should hold off planting wheat until a week prior to the Hession fly-free date, which ranges from the first week of October in Central Illinois to Oct. 9 to 12 in deep Southern Illinois.
Otherwise, farmers who plant too soon could put their wheat crop at risk of more insect and disease pressure as well as the possibility of putting on too much growth prior to winter. “If it has too much fall growth, you can put wheat in a position in which it doesn’t survive the winter as well,� Ebelhar said. On the flipside, planting too late after the fly-free date could create issues developing good stands as well as put the late-developing crop at more risk to insect pressure in the spring. Research at the U of I Monmouth research farm showed wheat yields went down about a half bushel for each day the crop was planted after the flyfree date.
Controlling head scab can reduce wheat quality issues Wheat growers have more tools than they did just five years ago when it comes to controlling Fusarium head blight, also known as head scab. Wheat breeding programs each year identify varieties that have resistance to scab and incorporate those genetics into higher-yielding lines.
“We have more tools to manage head scab than we had before,� Fred Kolb, University of Illinois plant breeder, said last week at the Illinois Wheat Forum hosted by the Illinois Wheat Association. “More varieties with better resistance and more fungicides (Caramba, Folicur, and Prosaro) are available.�
A combination of those tools could be critical to reducing issues related to scab. In particular, Illinois farmers and wheat millers this year dealt with some grain that had high levels of Deoxynivalenol (DON) due to humid and moist conditions during flowering. Levels of DON, which is
produced by the fungal pathogen that causes head scab, are limited to less than 1 part per million (ppm) for food wheat, 5 ppm in feed wheat for swine and poultry, and 10 ppm in feed wheat for cattle. Kolb said variety trials have shown that scab-resistant lines in some cases keep DON levels below 2 ppm and, with the addition of fungicide, DON levels can be held below 1 ppm. “You need to be delivering grain to mills down in this range,� Kolb told producers at the wheat forum. “Combining resistant varieties with a fungicide application has a dramatic impact on the number of Fusariumdamaged kernels and DON levels.� Farmers who deliver wheat with higher DON levels typically receive a discounted price or are turned away at the elevator. Millers are less willing to accept wheat with high levels
of DON because they have higher costs of additional conditioning of the grain, they must blend it, and in many cases they must sell it as feed rather than for human consumption. “We want to raise food wheat, not feed wheat,� said Carl Schwinke of Siemer Milling in Teutopolis. “Corn (as of last week) is about $3 per bushel less than wheat. So there is a significant discount when you produce wheat for feed as opposed to wheat for food.� Wheat futures prices recently topped $7 per bushel. Farmers who plan to plant wheat this fall may visit the website {http://vt.cropsci.illinois.edu/wheat.html} for a head scab evaluation from wheat variety testing. They also can go online to {www.ag.ndsu.edu/scabsmart} to learn about scab management and {www.wheatscab. psu.edu} to view a scab forecast for each region of the country. — Daniel Grant
Collegiate ag groups sought for online spokesman effort
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The Animal Agriculture Alliance again will launch College Aggies Online, a program developed in partnership with the American National CattleWomen Inc., to help college students become advocates for the agriculture industry. Last year, 350 students representing 50 universities shared their stories on the College Aggies Online network, according to Alliance Executive Vice President Kay Johnson Smith. Students with a passion for agriculture are encouraged to sign up at {http://aggiesonline. ning.com}. After creating a personal profile on the network, members will gain
access to a private forum where they may discuss current and emerging issues facing farmers and ranchers with other young agriculturists from across the country. Members of College Aggies Online will compete to win prizes for the school organization they represent. Participants will earn points for each agriculture-related blog, photo, and video they post to the forum and for participating in other online outreach activities. Interested collegiate clubs or departments should contact Krissa Thom at KThom@animalagalliance.org or call 703562-1410.
FarmWeek Page 9 Monday, August 30, 2010
TECHNOLOGY
Company sowing future for off-patent technology BY MARTIN ROSS FarmWeek
Producers will see a major shift in the seed market in 2015 when patents on the original Roundup Ready (RR1) soybean trait expire and RR1 moves into the public domain. The trait’s originator, Monsanto, is working to ensure that shift is as smooth as possible for growers, seed companies, soybean breeders, and the ag marketplace. According to Monsanto government affairs spokes man Andrew Burchett, seed companies will be able to continue offering RR1 soybeans on a “generic” basis after patents expire. Farmers will have the option of saving RR1 seed to replant beginning in 2015. There will be no U.S. regulatory requirements for RR1 beans once patents expire, and Monsanto plans to shepherd continued global approvals for RR1 beans over the next decade. However, while Monsanto will allow farmers to save and replant its patented varieties with the RR1 trait in 2015, Burchett stressed other companies may not. “There will be a variety of biotech traits and trait stacks for soybeans for farmers to choose from in the next several years, but in 2015, they will all have to compete with free RR technology,” he told FarmWeek. “We know that when the patent expires, there will still be value in this trait, though it will be generic.
“But we want to be abundantly clear with farmers about their options. One of the things we want to clarify is the fact that there is other (protected) intellectual property in most soybean seeds that have (RR1) traits. “The most common form of intellectual property that could potentially become an issue in 2015 is the variety patent. You could have the trait expire, but the variety patent may not have expired.” Since its introduction in 1996, the RR1 trait has been licensed by Monsanto to roughly 200 other companies. Monsanto will not enforce variety patents
against growers who replant RR1 seed from its own products, but Burchett stressed, “We can’t speak for those other companies,” and growers will need to check with
FarmWeekNow.com Learn more about Monsanto’s plans when Roundup Ready 1 patents expire at FarmWeekNow.com.
seed suppliers prior to replanting. American Farm Bureau Federation biotech specialist Russell Williams said growers face “a big value proposition” come 2015 — whether to buy or replant RR1 seed free of GMO product tech
fees or use new-generation products such as Monsanto’s Genuity Roundup Ready 2 Yield (RR2Y) or Dupont’s Optimum GAT that offer advanced protection or yields. Williams stressed the need to assure international GMO market approvals remains in place following patent expiration. He sees the possibility of approvals eventually lapsing if no major company maintains an “economic attachment” to RR1, and if RR1 beans continue to flow into the market, that could pose “pretty substantial” trade risks. The first export certifications for RR1 expire in 2018-
MAINTAIN YOUR PROPANE For safe and efficient grain drying.
Goat Expo Sept. 18 in Fairfield The fifth annual All Breed Goat Expo will be held Saturday, Sept. 18, at the 4-H barns on the Wayne County Fairgrounds in Fairfield. The expo, coordinated by the Midwest Goat Producers, will feature informational seminars, a private-treaty sale, and numerous vendors of goat production equipment, fencing, and other ag products. Registrants of the expo will receive the booklet “Introduction to Goats.” For more information, visit the website {www.midwestgoatproducers .org}. To reserve a pen or vendor space, or for additional information, contact Vicky Wetzel at 618-3180516 or Mark Wells at 618854-2711.
Learn more by touring a virtual propane farm at
agpropane.com © 2010 Propane Education & Research Council.
2019, and Williams predicts 80 percent of U.S.-produced beans by 2014 may still include RR1 traits. Monsanto will maintain international registrations for the trait through 2021, and is working with others to develop an “industrywide solution” that applies to other traits moving off-patent in the future. “All the stakeholders — the grain trade, the animal feed folks, all the commodity groups, the large tech companies — are trying to get together to work out a path forward to facilitate trade and make sure farmers have access to ‘generic’ products,” Williams said.
FarmWeek Page 10 Monday, August 30, 2010
RESEARCH
U of I researcher seeks formula for 300-bushel corn BY KAY SHIPMAN FarmWeek
University of Illinois researcher Fred Below has identified five components of a high-tech package that should help farmers produce higher corn yields. The crops professor now is researching the individual importance of those compo-
nents on yields. “It’s difficult to know which (component) is the most valuable,” Below said during the recent U of I Agronomy Day in Urbana. Below’s top five list: • Boosting soil fertility with well-placed applications of 100 pounds of phosphorus oxide (P2O5);
SIU seminars to focus on horse care and health Southern Illinois University-Carbondale (SIU-C) is offering six seminars on horse care and health this fall. Dates will be Sept. 20, Oct. 4, Oct. 18, Nov. 1, Nov. 15, and Dec. 6. Each session will be from 6 to 8:30 p.m. in Room 209 of the Agriculture Building, Carbondale. The cost is $25 for those who pre-register through the University’s Division of Continuing Education or $30 at the door. Sheryl King, head of the equine science program in
SIU-C’s College of Agricultural Sciences, will teach the sessions, which will include discussions, demonstrations and some hands-on exercises. Topics include disease and parasites, injury, feed, hoof and leg care, horse anatomy, and mental health. Anyone interested in registering online should do so at {www.dce.siu.edu}. The workshops are listed under the calendar section on the right side of the page. Participants also may register by phone at 618536-7751.
• Using triple- or smartstack hybrids; • Sidedressing applications of 100 pounds of nitrogen per acre as a controlled release over the base rate of 180 pounds of nitrogen per acre; • Planting higher plant populations of 45,000 plants per acre, especially in more narrow “twin rows;” and • Applying a strobilurin foliar fungicide at flowering to control leaf disease and relieve plant stress. Below is studying the impact of each factor individually and together on university research plots in Champaign, DeKalb, and Simpson. In 2009 results, the yield difference between plots with the five high-tech components and those with none of the components was 66 bushels per acre in Champaign, 57 bushels in Simpson, and 14 bushels in DeKalb. While higher plant populations are the foundation for higher yields, the other four
components working together make yields as high as 300 bushels per acre possible, according to Below. Single components cannot guarantee higher yields, but
they have value when applied in combination, he added. “The key is to have higher (plant) populations, but you have to manage it correctly,” Below said.
ACES considering standards for public events given cuts State funding cuts are causing many entities to consider how they spend scarce dollars, and that includes the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES). Recently, interim ACES Dean Bob Hauser explained his criteria for public ACES events in light of “the decline in state (funding) support.” Speaking during the recent Agronomy Day, Hauser noted that event was a prime example of public outreach. Bob Hauser Hauser’s yardstick includes the following standards: • Events need to be extremely relevant to the state and “especially relevant to the core of our (ACES) mission,” he said. • Events need to fill a role not covered by the private sector. • ACES must be able to afford the event. • The event must provide outreach to the public. “We’re a land-grant (institution) and we have to keep that front and center,” Hauser added. ACES is a complex college that not only covers a variety of disciplines but also conducts teaching, research, and outreach, Hauser reminded the Agronomy Day crowd. — Kay Shipman
Auction Calendar Mon., Aug. 30. 10:30 a.m. Land Auction. Phyllis E. Kesler Estate, URBANA, IL. Gordon Hannagan Auction Co. Thurs., Sept. 2. 10:30 a.m. Farm machinery. Pierce Pork Grain Farms, DEKALB, IL. Almburg Auctioneering. www.almburgauctio ns.com Thurs., Sept. 2. 10 a.m. Farm machinery and miscellaneous. Loren and Ruby Brehman, STREATOR, IL. Bradleys’ and Immke Auction Service. www.bradleyauction sinc.com Thurs., Sept. 2. 10 a.m. Real Estate. Galesburg Livestock Sales, Inc., GALESBURG, IL. Gregory Real Estate and Auction Co. biddersandbuyers.com Thurs., Sept. 2. Farmland auction. LASALLE, IL. Soy Capital Ag Services. Sat., Sept. 4. 9 a.m. Consignment Auction. EDINBURG, IL. Cory Craig, Auctioneer. www.corycraig.com Wed., Sept. 8. 10 a.m. 288.57 Ac. Real Estate. Elbea (Ed) Malone, ABINGDON, IL. Van Adkisson Auction Service, LLC. www.biddersandbuy ers.com Wed., Sept. 8. 116.3
Ac. McLean Co. Soy Capital Ag Services. www.soycapitalag.com Thurs., Sept. 9. 7 p.m. Farmland Auction. Late Norma and Albert Stocke Farm, CARMI, IL. Dosher’s Auction Service. Thurs., Sept. 9. 10 a.m. Land Auction. Fuenning and Shoemaker Farm, HOOPESTON, IL. Wallace Land Company. www.wallaceland.com Thurs., Sept. 9. 1:30 p.m. Real Estate Auction. Eunice Lois Semon Estate, LOSTANT, IL. Bradleys’ and Immke Auction Service. Thurs., Sept. 9. 10 a.m. Farmland Auction. Grandpa Doc L.P., ALEXIS, IL. Gregory Real Estate and Auction, LLC. biddersandbuyers.com Fri., Sept. 10. 10 a.m. 314 Ac. Lee Co. Dennis and Sharon Nickels. Bearrows Real Estate and Auction Co. Sat., Sept. 11. 10 a.m. Antique Tractor Auction. Doug Boughton Estate, LELAND, IL. Espe Auctioneering. www.espeauctions.com Sat., Sept. 11. 10:30 a.m. Farm machinery. Mike and Pat Fredrickson, ALEDO, IL. Steve Relander Auctioneer/Farm Broker. www.relanderauctions .com
Thurs. Sept. 16. 7 p.m. Cass Co. Land Auction. Mary L. Lockhart Estate. Sanert Auction Service. www.sanertauctions .com Thurs., Sept. 16. 10 a.m. Farmland Auction. Donald Hougas, NORWAY, IL. Dick McConville and Marty McConville, Auctioneers. www.mcconvillerealty. com Sat., Sept. 18. 9:30 a.m. Real Estate Auction. Shirley M. Miller Trust, DIXON, IL. Lenny Bryson and Mark Ebert, Auctioneers. topauctions247.com/paspolo Wed., Sept. 22. 11:30 a.m. Whiteside Co. Land Auction. Fulton Land Development, LLC, FULTON, IL. Lenny Bryson, Auctioneer. www.lennybrysonauct ioneer.com Wed., Sept. 22. 7 p.m. Land Auction. Lotta Moore Heirs, CLINTON, IL. Haycraft Auction Co. Inc. www.haycraftauctio ns.com Wed., Sept. 29. 6:30 p.m. Northern IL Land Auction. PRINCETON, IL. Capital Agricultural Property Services, Inc.. www.capitalag.com
FarmWeek Page 11 Monday, August 30, 2010
RESEARCH
Potential SDS-resistant soybeans may be on horizon BY KAY SHIPMAN FarmWeek
An ancient offshoot of soybeans may one day provide resistance to sudden death syndrome (SDS) and soybean rust, University of Illinois scientists reported at the recent U of I Agronomy Day. Justin Ma, a graduate research fellow in the U of I crop sciences department, said the glycine tomentella, a vine-like perennial native to Australia, is resistant to soybean cyst nematodes
U of I plans second Energy Farm tour The University of Illinois Energy Biosciences Institute (EBI) will have its second open house and tour Thursday, Sept. 9, from 9:30 a.m. to noon. The 320-acre farm is south of the U of I’s South Farms at 4301 S. Philo Road, Urbana. Participants will tour largescale research fields with biomass and bioenergy crops. Researchers will discuss best management practices, harvesting, and storing biofuel crops. For more information, email questions to energyfarm@igb.illinois.edu.
and rust diseases. “These are traits we hope to introduce (into soybeans),” Ma said. U of I researchers also have found new soybean lines with tomentella genes that have “significant” resistance to SDS compared to the soybean parent, Ma noted. Randall Nelson, a genetics researcher with USDA’s Agricultural Research Service, explained researchers aren’t able to directly cross modern soybeans with tomentella, because it has twice as many chromosomes as soybeans. However, using additional technology, scientists have
demonstrated they can introduce tomentella genes into soybeans because some of the plants have changes in oil and protein concentration as well as differences in plant height and flower color, Ma added. “The SDS resistance looks pretty good” in greenhouse tests, Nelson said. A farmer asked how soon SDS-resistant soybeans might be sold commercially. Nelson estimated they might be available as soon as five years, depending on continued research progress and whether a good private soybean breeder picked up the project.
Randall Nelson, a genetics researcher with USDA’s Agricultural Research Service, stands beside glycine tomentella, an ancient relative of soybeans. (Photo by Kay Shipman)
Federal Crop Insurance is changing for 2011
Trees Forever to host tree, water forum Trees Forever will have a tree and water quality symposium Thursday, Sept. 9, at Stoney Creek Inn, Moline. Registration will start at 8:30 a.m. and the program will conclude at 3 p.m. The registration fee, including lunch, is $15 for members and $20 for non-members. The morning speaker will be Tom Sauer, a research soil scientist for the National Laboratory for Agriculture & the Environment. He will discuss the importance of integrating trees into agriculture. The luncheon speaker will be Randy Neprash, a civil engineer who leads the Minnesota Cities Stormwater Coalition. He will discuss integrating trees to help manage stormwater. Workshop topics will include buffer maintenance, healthy community forests, incorporating trees and vegetation on farms, and preparing for emerald ash borer. Call 800-369-1269, extension 16, to register and pay over the phone, or go online to {www.treesforever.org/ Events/20100909/194/TreesWa t e r- Q u a l i t y - S y m p o sium-MolineIL/Registration.aspx}.
Are you prepared?
Big changes are coming next year for Federal Crop Insurance. Talk with your COUNTRY Financial representative or COUNTRY Crop Specialist now to make sure you are ready for those changes. COUNTRY has been insuring farms for 85 years, so let us put our experience to work for you.
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Issued by COUNTRY Mutual Insurance Company®, Bloomington, IL.
FarmWeek Page 12 Monday, August 30, 2010
GROWMARK
Decade of change seen as good for GROWMARK GROWMARK continued its run of “good years” based on sales and income posted during the fiscal year that will end Tuesday. Senior Vice President of Finance Jeff Solberg announced sales of $6 billion for the 2009-2010 fiscal year. The cooperative’s net income is estimated to be $81 million, up from $75 million a year ago. “Fiscal 2010 was another good year in a series of good years,” he said. “The result of this strong performance is a very strong balance sheet with a sound equity base ...” An estimated $55 million in patronage refunds will be returned to GROWMARK member cooperatives in the cooperative’s Plant Food, Crop Protection, Seed, Energy, and Facility Planning & Supply business units. Agronomy/Seed Divisions The Plant Food Division staged a strong comeback after a relatively weak previous year. Operating gross income is the second highest on record and volumes rebounded significantly from 2009 as prices declined and product became more affordable for farmers. “The late harvest in 2009 prevented the majority of fall tillage and plant food applications,” Solberg said. “Fortunately, April pro-
vided a window of opportunity to complete the extra work. Our FS cooperatives proved their ability to move massive quantities of product to the field.” The performance of the Crop Protection Division has been strong the last three years, and the outlook is positive. The Seed Division generated another year of growth in seed corn units, while soybean seed sales units ended the year flat as compared to last year. However, the Seed Division will pay patronage for the fifth year in a row. Energy Division The Energy Division had a strong year with volume increases in all products. Propane volume due to the wet harvest conditions of 2009, reached nearly 310 million gallons, an all-time record for the GROWMARK System. “The demand surge for grain drying stressed the industry’s distribution capabilities,” Solberg said. Grain Division GROWMARK has made significant investments in its retail grain business segment, which produced $800 million in sales and pretax income of $16 million in 2010. All four retail grain units
— Total Grain Marketing, Western Grain Marketing, Northern Grain Marketing, and Great Lakes Grain —
were profitable. Facility Planning and Supply Division The cooperative’s Facility Planning and Supply Division expanded its scope and offerings in 2010 with heavy
demand for bulk seed installation and many new farm and commercial grain dryers. Grain bin sales and construction continue to be strong businesses along with sales of facility equipment products. Sprayers, spreaders, and other equipment need regular replacing, and GROWMARK has relationships with major
manufacturers to fill those needs. Retail Operations GROWMARK’s retail supply business segment enjoyed another good year, producing $1 billion in sales and $18 million in pretax income. “Change has been the strategic theme for this decade,” Solberg said. “More change has occurred in this decade than in any other in our history, and that change has produced record levels of success and profitability for the GROWMARK System.”
GROWMARK directors elected Six farmers, including four from Illinois, were elected to three-year terms on GROWMARK’s Board of Directors during the cooperative’s annual meeting Friday in Chicago. They are: • Dan Kelley of Normal has served on the GROWMARK board since 1995. He has been chairman of the board and president since 2000. He and his wife, Pam, operate a grain farm in partnership with this two brothers and son. He also serves on the board of Evergreen FS Inc. • Chet Esther of Frederick has served on the GROWMARK board since 1994. He and his wife, Lori, along with their two sons, operate a 4,700-acre grain farm. He currently serves as president of Two Rivers FS Inc. • John Reifsteck of Champaign, has served on the GROWMARK board since 1993 and is currently vice chairman. He and his wife, Nancy, operate a corn and soybean farm in western Champaign County. • Kevin Herink of Clutier, Iowa, was
elected to his first term on the GROWMARK board. He and his wife, Tammy, operate a 1,500acre family farm and market 5,000 head of hogs annually. They also keep a small herd of Gelbvieh cattle. Since 1987, Herink has served several terms on his local cooperative board and currently is vice president of the board of New Century FS. • Denis Bourdeau of Embrun, Ontario, has served on the GROWMARK board since 2007. He and his wife, Hélène, own a fifthgeneration family farm, including dairy and cash crops, as well as operating a bed and breakfast. He also serves on the board of La Co-operative Agricole d’Embrun. • Jim Anderson of Thompsonville is the interlocking Farm Bureau director. He and his wife, LuAnn, operate a farm in Williamson County, raising 1,250 acres of corn and soybeans. He served 11 years as president of his county Farm Bureau and 15 years on the local FS board. He also served as a director and president of the former Interstate Producers Livestock Association.
AWARDS AND HONORS Four co-ops receive performance awards Four Illinois FS member cooperatives were recognized by GROWMARK Inc. for business performance improvement during the GROWMARK annual meeting in Chicago last week. Over a five-year 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 the manager and Ron Pierson is president. Other Illinois cooperatives receiving the award were: • Lincoln Land FS Inc., Jacksonville. Keith Hufendick is the general manager and Joe Pickrell is president. • Conserv FS Inc., Woodstock. David Mottet is the manager and John Henning is president. • Southern FS Inc., Marion. Alan Kirby is the manager and Rollo Burnett is president.
Five co-ops receive new Ceres award Five grain cooperatives were recognized by GROWMARK Inc. with the Ceres award during the GROWMARK annual meeting last week in Chicago. The new 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. One cooperative achieved all four of the qualifying criteria: Minier Cooperative Grain Co., Minier. Keith Swigart is the manager and Duane Haning is the president. Four other cooperatives achieved three of the four necessary criteria. • East Lincoln Farmers’ Grain Co., Lincoln. Paul Seaman is the general manager. John Adams is the president. • Morrisonville Farmers Cooperative Co., Morrisonville. Dan Litteken is the manager and Kenneth Folkerts is the president.
• GRAINLAND Cooperative, Eureka. Jeff Brooks is the manager and Tom Kennell is the president. • Prairie Central Cooperative, Chenoa. Mark Heil is the manager and John Wahls is the president.
GROWMARK honors ag leader Rick Ringer, associate professor at the Illinois State University College of Business, was honored last week with the “Friend of GROWMARK” award at the GROWMARK annual meeting in Chicago. Ringer in his nomination was cited as a “terrific partner in the development of the future leadership of the GROWMARK system.” He promotes a positive culture and professionalism in the GROWMARK system through support and coordination of programs including the GROWMARK leadership education and development program, advanced director certification program, and the supply chain management program.
FarmWeek Page 13 Monday, August 30, 2010
FB IN ACTION CHECKING KERNEL MOISTURE
Sen. Dan Kotowsi (D-Park Ridge) and his sons, Nate and Cooper, listen as Linda Sadler explains the care her horse “Barnum� receives on the family’s farm. Sen. Mike Frerichs (D-Champaign) looks on in background. (Photo courtesy of Vermilion County Farm Bureau)
Adopted urban senator, family visit Vermilion County farm BY TOM FRICKE
Vermilion County Farm Bureau (VCFB) hosted its adopted legislator, Sen. Dan Kotowski (D-Park Ridge), and his sons, Nate, 10, and Cooper, 7, for a recent visit to the farm of VCFB President David Sadler and his wife, Linda. They toured the family’s horse barns, where the kids petted the horses and fed them hay as Mrs. Sadler related the care the horses receive. After a stop by a cornfield, the senator visited with VCFB Young Leader Chairman Steve Huls. Huls talked about the investment a young farmer has to make to get into farming. The visitors then rode around a mowed field in his combine. Huls told the senator how GPS is used to track yields and then apply the needed inputs to maximize yields while protecting the environment. Following lunch, the group went to the Dwight Bohlen
hog farm. Dwight and his sons, Eddie and Jake, finish about 2,500 hogs a year. The senator went through the barn where Dwight and Jake talked about how they care for the animals: the food and water they receive and the ventilation and cooling systems in their facilities. In all, 14 VCFB members had the opportunity to interact with Senator Kotowski and his family that day. The Illinois Farm Bureau Adopt a Legislator Program pairs urban legislators with county Farm Bureaus to allow the lawmakers to learn more about the state’s No. 1 industry. The first-hand knowledge the legislators gain helps them when considering bills in the General Assembly.
State Sen. Donne Trotter, left, (DChicago), discusses corn quality and harvest conditions with Woodford County Farm Bureau member Chad Leman during Tr o t t e r ’s r e c e n t t o u r w i t h h i s “adopted� county Farm Bureau. The senator saw farm technology advances on Daryl Hodel’s farm, El Paso, and grain industry infrastructure at the Grainland Co-op, Eureka. He also discussed animal c a r e o n t h e L e m a n f a r m ’s h o g finishing operation. Farm Bureau leaders noted the senator toured multi-generational family farms that also were incorporated. Trotter, chairman of the Senate Appropriations Committee, said he doesn’t see any end in sight for the state’s budget problems. ( P h o t o b y J o l e n e N e u h a u s e r, Woodford County Farm Bureau manager)
Tom Fricke is Vermilion County Farm Bureau’s director of information. He can be reached at 217442-8713.
FROM THE COUNTIES
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HAMPAIGN — A town hall meeting will be at 7 p.m. Tuesday, Sept. 7, at the Farm Bureau auditorium. State Rep. Chapin Rose (R-Mahomet) will speak on the budget reduction plan for Illinois. Call the Farm Bureau office for more information. UMBERLAND — The Prime Timers will sponsor a bus trip Monday, Sept. 13, to the Fair Oaks Dairy Farm, Fair Oaks, Ind. The bus will leave from the Farm Bureau office at 7:30 a.m. and return by 5:30 p.m. Cost is $50 for members and $55 for non-members. Price includes bus, admission, buffet lunch, and Fair Oaks ice cream. Call the Farm Bureau office at 217-849-3031 for reservations or more information. ASALLE — The Marketing Committee will
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sponsor a seed corn plot day at 5:30 p.m. Tuesday, Sept. 14, at a plot west of Ottawa. Call the Farm Bureau office at 815433-0371 for a meal ticket or more information. TARK — Farm Bureau will sponsor an information meeting about U.S. Environmental Protection Agency’s spill prevention, control, and countermeasure rule at 3 p.m. Thursday, Sept. 9, at the Farm Bureau office. Kevin Runkle, Illinois Fertilizer and Chemical Association, will be the speaker. Call the Farm Bureau office at 309286-7481 by Tuesday, Sept. 7, 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.
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FarmWeek Page 14 Monday, August 30, 2010
PROFITABILITY
New ‘Confidence Index’ Review your crop before ‘final exam’ somewhat optimistic BY LANCE RUPPERT
BY DANIEL GRANT FarmWeek
A survey of 100 owners or managers of agribusinesses found expectations are somewhat optimistic heading into harvest, despite the slumping overall U.S. economy and high unemployment. DTN/The Progressive Farmer last week unveiled results of its first-ever Agribusiness Confidence Index. Any score above 50 indicates optimism and the first score of the index released last week was 71. “The recent surge in grain prices could contribute to this (level of optimism),” said Mary Rose Dwyer, product manager of the index. “The other thing survey was ‘The recent surge in grain isofthe agribusiness prices could contribute to managers, and salespeople by this (level of optimism).’ nature tend to be optimistic.” Agribusiness — Mary Rose Dwyer managers in the DTN product manager survey rated their prospects of current and future sales of products and services, current and future profitability, and business prospects in the next 12 months. The ag business leaders who were surveyed represented elevators, ag retailers, livestock companies, food product manufacturers, ag services, bankers, and seed companies, along with other sectors. The index will be released three times per year and will complement the Agricultural Confidence Index, a survey of 500 farmers that DTN unveiled in April. “There are a lot of business indexes, but we haven’t found one dedicated to agriculture,” Dwyer said of the reasoning behind the new agribusiness index. “We look at the ag economy as separate” from the overall U.S. economy, she said. Farmers surveyed in the first Agriculture Confidence Index were more pessimistic (with an average score of 34) than their counterparts in agribusiness. Dwyer said the indexes will prove more valuable over time as a means to establish benchmarks and identify trends in the industry. For more information, visit the website {www.dtnprogressivefarmer.com}.
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 $36.00-$41.65 $39.19 $55.00-$59.00 $57.44 n/a n/a This Week Last Week 22,331 12,915 *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 $79.00 $79.29 $58.46 $58.67
Change -0.29 -0.21
USDA five-state area slaughter cattle price Steers Heifers
This week n/a $99.00
(Thursday’s price) Prv. week Change $99.82 $99.85 -0.85
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change 113.24 1.45
This week 114.69
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 08-19-10 11.7 21.5 37.6 08-12-10 16.5 21.8 32.9 Last year 11.3 17.9 42.3 Season total 1440.8 209.4 1803.8 Previous season total 1217.7 166.8 1727.5 USDA projected total 1470 1200 1975 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Summer is coming to a close, and the younger generation is back in school. From grade school through college, students are taught important subjects and then tested to see how much they learned and retained. Before a big exam, most students spend some time reviewing their lessons in order to increase their probability of success. As summer draws to a close, the agricultural community is preparing for this growing season’s final exam, harvest. But before we send the combines through the fields, let’s take some time to review what might affect our final Lance Ruppert grade. This season had many environmental challenges. Excessive rain hit most parts of the Midwest this summer, and the recent heat wave definitely had a damaging effect on crops. These environmental extremes seem to be the norm in recent years, so we need to determine ways to better manage these challenges. As you review, take that final walk through your cornfields and ask some questions. Did I run out of nitrogen? Was it due to excessive rain and ponding? How could I manage my nitrogen differently to minimize risk of leaching and denitrification? Was compaction a detriment to root development?
Did I have an ideal population? Could I have planted 10 percent more to take advantage of excess fertility and moisture? Was my weed control adequate? Did I miss a post application of herbicides due to wet weather? Would a pre-emergence residual have helped my weed control and subsequent yields? Did I have high disease pressure? Would a fungicide application have helped my crop finish stronger and yield more? Is anthracnose or diplodia currently present? Do I need to manage my harvest according to stalk rot and stalk quality? In your soybean fields, determine if weed control was effective. Did insects and disease have a negative effect on the crop’s yield potential? There are many questions to review as you prepare for the final exam. But remember, when the final exam is over, you have no way of going back and reviewing the potential reasons why you earned the grade you received. Engage your local FS crop specialist to take that final walk with you. Together you can ask tough questions and start preparing a plan on how to improve your chances of earning a higher grade on next year’s final exam. Lance Ruppert is GROWMARK’s crop protection marketing manager. His e-mail address is lruppert@growmark.com.
Tips for addressing molded corn It is not unusual to see mold damage levels as high as 30 percent or more in on-farm storage this summer, according to Mike Roegge, University of Illinois Extension crops educator for Adams and Brown counties. Elevators are referring to the damaged corn as infected with blue eye (or blue) mold, which describes the symptoms on a kernel. The infection starts at the germ end of the kernel and will turn the germ a bluish hue. The mold then spreads to the outside of the kernel. The infection took place during harvest or during storage, according to Roegge. The mold actually is the spores of the fungus that caused the mold, either Aspergillus glaucus or a species of Penicillium. These organisms are widespread and common every year. However, the reason farmers are seeing such a huge
amount of mold this year is because the corn was “wet” when it was stored last fall, Roegge said. The Aspergillus fungus can grow in grain with moisture levels as low as 14.5 percent. So all the months that corn has been in the bin since last fall have provided ample opportunity for the fungus to grow and spread within the bin. Nearly every bin has molded corn along the bin sidewall. That was a great opportunity for organisms to thrive and spread to other kernels in the bin, Roegge noted. Roegge recommended farmers deliver the damaged corn and suffer the consequences; however, some farmers are considering holding this grain to blend it with new crop to avoid penalties. Roegge warned farmers to be careful if they are considering blending damaged grain with new corn. “You do not
Farm Talk meetings slated around state Illinois Farm Bureau President Philip Nelson and IFB Vice President Rich Guebert Jr. will conduct regional Farm Talk meetings later this year throughout the state. Dates, times, and locations are: • Monday (today), 11 a.m., Effingham County, Joe Thoele farm, 13550 N. 2100 St., Teutopolis; 5:30 p.m., Williamson County, John A. Logan Col-
lege, 700 Logan College Rd., Carterville. • Wednesday, 11 a.m., Warren County, American Legion Post 136, 1110 N. 11th St., Monmouth; 5:30 p.m., LaSalle County, Pitstick Pavilion, 3401 N. State Rt. 23, Ottawa. You may register by contacting your county Farm Bureau or the IFB president’s office at 1-800-676-3217.
want to risk turning your good corn this fall into poor corn by not getting the good-tobad ratio correct,” he said. “If you decide to risk it, you will need to completely empty the bin of damaged corn to break up and eliminate any clumps,” Roegge advised. “Clean off the sidewalls as well. Then re-dry the corn to a moisture level of 12 to 13 percent (remember Aspergillus fungus can grow in moisture levels as low as 14.5 percent). Continue to monitor the grain,” he said. Another alternative is to feed the damaged grain. Before feeding the grain, a farmer should have a toxin screen completed on the grain. While Aspergillus glaucus is not toxic, another Aspergillus organism can cause aflatoxin, he warned.
FarmWeek Page 15 Monday, August 30, 2010
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Cents per bu.
2009 crop: Wrap-up oldcrop sales now. 2010 crop: Corn shows signs of weakening when the short-term trend in wheat turns down. However, prices continue to find support from strong demand and uncertainty about this year’s yield. If the December contract can penetrate the $4.39 resistance, it could challenge strong resistance at $4.50 to $4.52. Going forward, the trade will have to contend with seasonal pressure with harvest quickly approaching. Use rallies into the $4.30s on December futures for catch-up sales. Fundamentals: Export sales are helping keep a floor under the market, with world buyers being forced to shift from feed wheat to more traditional feed grains. Last week’s sales, 1,735,800 metric tons (66.3 million bushels), was well above trade expectations. The 10-day weather forecast on Friday called for mostly dry conditions, cutting into yield potential, but aiding maturity. Early yield reports have been disappointing, but generally aren’t good indicators.
Soybean Strategy
Export sales hold important clues Export sales of wheat and corn in particular, have surged in recent weeks. That’s in large part because of the repercus-
Basis charts
sions of this summer’s crop problems in Russia and the Ukraine. Wheat and feed grain importers were forced to scramble to cover purchases that had been canceled as those crops deteriorated. Given the pace of sales the last few weeks, and comments from some key buyers, it appears those canceled purchases have been covered, meaning the panic buying should be over or nearly so. Now buyers are faced with a higher price level for grains than when summer began. Those higher prices could diminish demand somewhat, causing accumulated future export sales to fall short of current expectations. Clearly, though, this is where traders will focus once crop sizes are better known later this fall. AgriVisor endorses crop insurance by
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
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2009 crop: Gulf basis levels started to give ground last week, which will soon start to weaken interior levels. Spot prices are still a 30- to 60-cent premium above new crop. Wrap up sales. 2010 crop: November’s close below $10 was a sign the short-term trend may have turned down, a trend that could remain intact into the harvest low. Use rallies to $10.15$10.25 for catch-up sales. Fundamentals: Rains across parts of the southern Corn Belt and scattered parts of the South may have helped the crop somewhat. But, the prevailing opinion is the generally drier August weather cut into yield potential. The unknown is how much? With the current USDA demand forecast, there’s room to give up at least 2 bushels of yield per acre and still have adequate supplies. Demand for soybeans and products remains robust. However,
when buyers feel secure about a good crop, demand could slow as buyers wait for “harvest lows.”
Wheat Strategy 2010 crop: The shortterm trend in wheat remains uncertain. The primary trend still points lower. If Chicago December slips below $6.75, it would indicate the minor trend has turned down, positioning prices to test $6 to $6.40. However, a close above $7.25 would indicate additional upside potential. Use rallies above $7 for catch-up sales. Storage hedges, or hedge-to-
arrive (HTA) contracts, for winter delivery are still the best tool. 2011 crop: Use rallies to $7.10 on Chicago July 2011 futures for catch-up sales. If basis is wide compared to this past summer, consider an HTA contract. Fundamentals: Rumors circulated Russia could import as much as 6 million metric tons of grain in 2010/2011 to make up for the shortfall because of this summer’s drought. Demand for U.S. wheat remains strong as reflected by continued good exports. 1,077,600 metric tons (39.6 million bushels) was sold last week, above trade expectations.
FarmWeek Page 16 Monday, August 30, 2010
PERSPECTIVES
Agriculture makes ‘choice’ career choice
industry in his native South. After conservation districts were organized, Bennett foresaw that they could be more effective nationally. Partially due to his encouragement, the districts formed the National Association of Conservation Districts or NACD. Bennett served as chief of the SCS until November 1951. He had established conservation of agricultural lands as a national priority. He developed soil conservation as a profession that was taught at land-grant universities. Bennett argued against erosion panaceas that were based on just one of the disciplines. Soil conservation, he believed, required many tools used together. Foresters, engineers, agronomists, soil scientists, and others would mutually contribute to solutions that fit a location’s specific soil, climate, and agriculture. Bennett had a unique set of talents to establish soil conservation in the national consciousness. He brought credibility of scientists to the task and combined it with a passion for the cause. He was persuasive — his abilities as a writer and speaker played a large role in his success. He steadily wrote articles about soil conservation and became a welcome and inspiring speaker at farmfield demonstrations and at scholarly gatherings. His crusading zeal brought many converts to soil conservation and made him the embodiment of the conservation movement. Bennett was unique among career civil servants. Although not well connected socially or politically, he succeeded in creating a federal agency. He accumulated many awards. More importantly, he was known to the general public, especially those who worked the land. Foreign countries honored him, and when he died, the Raleigh News and Observer, from his native state, thought that Bennett might come to be recognized as the most important North Carolinian of his generation.
If you’re a movie buff, you’ll recall the career advice shared with young Benjamin Braddock in the 1967 movie “The Graduate.” “Plastics,” young Benjamin was told. Today, there is a good chance the giver of that advice, Mr. McGuire, would be proposing another up-andcoming career field — agriDAL GROOMS culture. While U.S. unemployment guest columnist figures hover near 10 percent, colleges and universities are placing their agricultural graduates into jobs at higher rates than ever before. The director of ag career services at Iowa State University, Mike Gaul, said the latest placement data on agricultural graduates from his college shows 98.5 percent of them have jobs within a year of graduation. Plus, 76 percent of those with ag business degrees already had a job in hand when they picked up their diplomas in the spring. That view is further supported by a 2010 USDA report, “Employment Opportunities for College Graduates in Food, Renewable Energ y and the Environment, 2010-2015.” The study said there is an expected shortfall of new graduates that will be needed in the next three to five years. Overall, the study said there will be 54,400 open positions generated each year, but only 29,300 students will be graduating with ag-related degrees in those fields. The shortfall of ag-knowledgeable students likely will be made up with students in allied fields such as biology, engineering, health sciences, and business. Think of the leg up graduates will have if they’re familiar with agriculture and the issues that directly affect it. Parents of students heading to a college or university this fall might want to direct them to this report. Agriculture truly is a career that is enjoyable, rewarding, and in demand. There is a misperception that agriculture jobs are limited to hands-on production of livestock and crops, and that those jobs are low-paying and have no advancement opportunities. When you look at the job opportunities and the related salaries, you’ll see agriculture offers so much more. If you’re worried too many students will rush to this area, and the market will be flooded in two to four years, relax. Enrollment in ag-related majors is the choice of only one-half of 1 percent of all students headed to college this fall. So, look around at friends and family headed to college this fall, pull them off to a corner, and give them this one-word piece of advice: Agriculture.
Bill Gradle is the Natural Resources Conservation Service state c o n s e r va t i o n i s t f o r I l l i n o i s. H i s e - m a i l a d d r e s s i s bill.gradle@il.usda.gov.
Dal Grooms, a contributing columnist for the American Farm Bureau Federation. She is a native of the Midwest, where she writes about rural and agricultural issues.
Illinois fields suffered severe soil erosion in the 1930s before the Soil Conservation Service promoted conservation practices. This year, the Natural Resources Conservation Service (NRCS) marks 75 years of helping farmers care for America’s natural resources. (Historic photo courtesy NRCS)
A salute to the ‘father of soil conservation’ As the Natural Resources Conservation Service (NRCS) marks its 75th anniversary, let’s take a historical look at the man known as the father of soil conservation. Hugh Hammond Bennett, the first chief of the Soil Conservation Service, was born April 15, 1881, and died July 7, 1960. A native of North Carolina, Bennett joined the Bureau of Soils in the USDA in 1903. He observed the results of soil erosion through his work making soil surveys. In 1905, Bennett had his epiphany on the significance of soil erosion while conducting a soil survey in Louisa County, Va. There he compared the topsoil depth of undisturbed soil with a similar nearby soil that had been extensively cultivated. A few years later, Bennett and his colleagues described 136,000 acres of formerly good farmland in Fairfield County, S.C., as being ruined by erosion. Increasingly, he spoke against erosion and wrote about its threat to the BILL nation. Where others had failed, BenGRADLE nett brought national attention to the problem of soil erosion. Against considerable odds, he used the opportunity afforded by the public works programs during the Great Depression, negotiated obstacles, and saw Congress create the Soil Conservation Service (SCS) as a new agency within USDA. While working with landowners, SCS made conservation its organizing principle. Bennett believed in working with nature and using the land within its capabilities. SCS identified conservation practices and spread the technology nationwide. Two examples of practices and technology are strip-cropping and terracing. An active research program investigated the causes of erosion and developed solutions. SCS pioneered the selection and use of native plants for conservation. Bennett was proud of these developments, especially the selection of grasses to develop the cattle
LETTER TO THE EDITOR Farm modernization not always good Editor: After reading Robert Sayre’s letter in FarmWeek Aug. 23, I decided to add a few thoughts of my own. When we had more farms and farmers, we were producing a workforce that knew how to work anywhere. We had students in schools who had chores to do before and after school. They went home, not to
the pool hall or a hang out. We had feed and seed stores in every town. We had small implement businesses that had customers. Recently, my son was shopping for a piece of equipment. The dealer said he had sold only one 24-row planter in several months. My son asked if he would rather have 10 customers buying 10 small pieces or one buying one large piece.
He said, “I never thought about it that way.” Modernization has advantages, but it sure has a lot of disadvantages. When I started farming in 1954, everyone had a flock of chickens, a few milk or beef cows, some hogs, and a large garden. I see very few of those around today. WILLIAM WATERS, Red Bud
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