FarmWeek February 14 2011

LOCAL OFFICIALS and their constituents benefit from a clear, open, and well-communicated process for siting wind energy projects. ...........3

THE GENERAL Conservation Reserve Program signup period will begin March 14 and conclude April 15. CRP has entered its 25th year. ...5

KEEP IT OR KILL IT is a question for many farmers who planted soft red winter wheat last fall. ....................................................7

Monday, February 14, 2011

Two sections Volume 39, No. 7

EPA delay best bet for Senate?

Nelson warns of regulatory ‘double jolt’

BY MARTIN ROSS FarmWeek

Farmers would receive a “double economic jolt” under potential U.S. Environmental Protection Agency (EPA) greenhouse gas (GHG) regulations, Illinois Farm Bureau President Philip Nelson told Washington lawmakers last week.

Testifying before a U.S. House Energy and Commerce

FarmWeekNow.com To hear President Nelson’s testimony on how EPA regulations will hurt agriculture, go to FarmWeekNow.com.

Committee panel, Nelson hailed Chairman Fred Upton’s (R-Mich.) proposal to block EPA from regulating carbon emissions from stationary (non-mobile) sources under the Clean Air Act. Nelson warned costs incurred by utilities, refiners, and manufacturers forced to comply with GHG requirements would be passed on to producers, who, “to a large degree,” cannot pass increased energy and input costs onto consumers or end users.

Further, potentially thousands of operations could be subject to New Source Review-Prevention of Significant Deterioration construction permits and Title V operating permits for farms that emit or have potential to emit more than 100 tons of a regulated GHG per year.

EPA estimates the Title V permits alone would cost agriculture $866 million, and Nelson stated animal agriculture would be “especially impacted,” noting USDA estimates that nearly 90 percent of the U.S. livestock operators are producing above permit thresholds.

EPA’s “costly and burdensome regulatory scheme” would produce little, if any, global environmental benefit, Nelson argued. “Regulation of GHGs emitted in Illinois means little if emissions in China are not similarly regulated,” he said.

Rep. John Shimkus, a Collinsville Republican who chairs the committee’s Energy and Environment Subcommittee, noted “a wide, diverse community of people” testifying to the economic consequences of greenhouse regulation. Shimkus pegged energy cost containment to U.S. job stability and

Illinois Farm Bureau President Philip Nelson testifies regarding the potential impact of greenhouse gas regulation on agriculture before the House Energy and Commerce subcommittee. To his left is Margo Thorning, chief economist with the American Council for Capital Formation. Thorning warned lawmakers U.S. investment could decline by 5 to 15 percent — a decline as large as was seen at the beginning of the current recession in late 2007 — if major greenhouse regulations take effect. (Photo courtesy of American Farm Bureau Federation)

competition with China and other emerging economies.

“If you raise the cost of energy, you hurt jobs,” he told FarmWeek. “And as we raise the cost of doing business in this country, we incentivize countries that aren’t doing that to compete with us.

“This is not a difficult argu-

ment. It’s the reason we stopped passage of a federal (greenhouse) ‘cap-and-trade’ law. We won the jobs debate.”

Shimkus blasted “audacious” pro-regulatory testimony by boot manufacturer Timberland Co., noting the company relies on offshore production.

Timberland is “incentivizing its

own production” by urging measures that raise competing U.S. manufacturing costs, he charged.

Shimkus rejected the “myth” that EPA was forced to regulate GHGs under a U.S. Supreme Court mandate. In its decision See Jolt, page 2

Periodicals: Time Valued

White House unveils advanced broadband initiative “Innovation” is the administration’s key buzzword for February as it focuses on business incubation, improved infrastructure, and Internet intensification.

President Obama last week unveiled a Wireless Innovation and Infrastructure Initiative aimed at extending advanced broadband access to 98 percent of Americans.

The plan proposes to free up available broadband “spectrum,” spur broadband development, and create a nationwide wireless public safety network.

Broadband expansion was one of the president’s major nods to rural needs in his State of the Union Address — he noted South Koreans today enjoy greater Internet access than many U.S. communities. Obama sees key economic potential in “next generation,” higher-speed 4G (fourth generation) wireless technology.

Broadband access was a priority for Illi-

nois Farm Bureau’s Farm Policy Task Force Rural Development Subcommittee last week, along with tax issues, health care, and community infrastructure.

Subcommittee Chairman Robert Catey noted need for reliable Illinois broadband mapping to gauge needs relative to the nationwide “situation.”

The president’s plan seeks to: • Expand access to 4G wireless. Obama supports a $5 billion investment in rural wireless/wired 4G broadband expansion, with a goal of moving from the current nearly 95 percent 3G wireless access to at least 98 percent access to faster 4G services nationwide within five years.

Obama noted improved high-speed access would enhance community access to medical tests and information as well as economic opportunities.

Last week, Sen. Dick Durbin, a Spring-

FarmWeek on the web: FarmWeekNow.com

field Democrat, announced $360,000 in new funding to help 60 Illinois hospitals and rural health centers implement advanced electronic health records systems.

• Nearly double wireless spectrum available for mobile broadband. Obama argued proliferation of “smartphones” such as the iPhone or Droid will result in lower costs and greater demand for bandwidth or wireless speed. 4G deployment may help meet new demand, but the technology relies on wireless “airwaves” currently constrained by a spectrum “crunch.”

The White House proposes freeing spectrum via incentives to agencies that efficiently use bandwidth and legislation allowing voluntary auctions among private spectrum “holders.”

• Create a $3 billion Wireless InnovaSee Broadband, page 2

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

FarmWeek Page 2 Monday, February 14, 2011

STATE

Quick Takes STATE WIND INDUSTRY GROWING — Illinois’ wind energy industry continues to be a strong economic sector and may grow stronger this year, according to an Illinois State University (ISU) researcher.

Dave Loomis, an economics professor and director of ISU’s Center for Renewable Energy, reported wind energy projects with more than 2,000 megawatt capacity were installed last year. The state was responsible for more than half of the nation’s new wind energy generating capacity installed in the first quarter of 2010.

Currently, Illinois ranks sixth nationwide in wind energy capacity. Given the number of wind farm projects under construction and others that have received permits, Illinois may move higher, Loomis speculated.

“We believe it’s possible Illinois may be No. 4 in wind energy in the country in 2011,” Loomis said.

HOSTILE REGULATORY WORKPLACE? — The administration can’t hope to put more Americans to work in farming if the farm becomes a hostile workplace, National Pork Producers Council spokesman Dave Warner warns.

Warner noted a House push to identify potentially overreaching federal regulations per President Obama’s pledge of a forthcoming regulatory review. He expects general regulatory concerns to surface during a congressional “state of agriculture” hearing featuring Ag Secretary Tom Vilsack.

Beyond greenhouse gas and prospective EPA dust control rules and Chesapeake Bay nutrient management plans, Warner cites fears that USDA-proposed Grain Inspection, Packers, and Stockyards Administration (GIPSA) rules fail to recognize potential livestock regulatory costs and meat price impacts.

He acknowledged Vilsack’s pledge to conduct a more detailed economic analysis of proposed GIPSA rules, but suggested “we ought to put the economic analysis up for comment.” “(Vilsack’s) whole deal is, ‘We need to repopulate rural America,’” he told FarmWeek. “But how many guys are going to want to go back and work on the farm if there are days when they can’t work because it’s too dusty?”

TOUGH CYCLING — A pair of studies by the Energy Biosciences Institute suggest using “life-cycle” analysis — gauging impacts from crop production to on-road use — to measure the carbon footprint of biofuels is a complex task that might not be achievable under real-world circumstances.

The studies show that “while life-cycle assessment can provide important insight, there remains tremendous uncertainty around the results and substantial differences in analytical approaches,” said Geoff Cooper, Renewable Fuels Association vice president of research and analysis. “These papers underscore our concerns about the use of life-cycle analysis as a rigid regulatory tool,“ Cooper said.

The California Air Resources Board earlier appointed Cooper to the advisory panel for the state’s Low Carbon Fuels Standard (LCFS) program. Issues such as agricultural land use for and related carbon emissions from ethanol production have played a major role in standard development.

(ISSN0197-6680) Vol. 39 No. 7

February 14, 2011

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C-FAR seeks new approach under reorganized format

BY CHRIS MAGNUSON

Establishing research priorities and changing the manner in which research funding is provided by the state were two major items discussed last week at the first annual meeting of the Council on Food and Agricultural Research (C-FAR) since its major reorganization last June.

C-FAR Chairman Chuck Cawley reported to members that two key elements of the reinvention of C-FAR are in process.

“First of all, each of the four sector caucuses is in the process of establishing research priorities,” said Cawley. Under the new structure, the four caucus areas are corn, soybeans, pork-beefdairy, and specialty crops-wheat-allied industries.

“Secondly,” Cawley continued, “the C-FAR board is asking the General Assembly to amend the Food and Agricultural Research Act to expand the ability of all Illinois universities to apply for and compete for grants from C-FAR through a more centralized and competitive grant awarding process.“ Currently, funds going to C-FAR are allocated on a set percentage basis to the four univer-

sities in the state with ag programs.

In addition, the changes will allow for grants and donations from outside sources.

Mandated annual reports on the research will be presented to the General Assembly.

Cawley indicated the legislative change being sought also would restrict the ability to sweep the research funds into the General Revenue Fund.

The need for a different funding mechanism was made obvious by Illinois Department of Agriculture Director Tom Jennings.

He told the group, “I am a strong supporter of agriculture research, but at this time, you are on your own to obtain funds. However, you need the educational component to inform legislators how the C-FAR model has changed.”

Illinois is ranked 11 out of 12 in state-funded ag research among Midwestern states.

Only South Dakota is behind Illinois.

State appropriations for C-FAR have ranged from $3 million in fiscal year 1996 to a high of $15 million annually for three years (20002002) and declining since then to its current funding level of $0.

Broadband Continued from page 1 tion Fund to support efforts to tap 4G for public safety, education, energy, health, transportation, and economic development.

• Establish an “interopera-

ble” wireless network for public safety. Obama seeks $10.7 billion for development, including $3.2 billion to reallocate the “D Block” — a band of spectrum that would be reserved for localized safety use.

The National Telecommunications and Information Administration already has provided $400 million in grants to jurisdictions that use wireless broadband for public safety. — Martin Ross

Jolt Continued from page 1 in 2007’s Massachusetts vs. EPA, the court ruled EPA was compelled to regulate carbon emissions under clean air statutes if the agency determined they would significantly endanger human health.

The court left it entirely to EPA’s discretion to pursue a 2009 “endangerment finding” which linked theoretical GHG-climate impacts to longterm public health, Shimkus said. In pressing forward, EPA is violating Congress’ intent to exempt carbon dioxide from Clean Air Act jurisdiction.

Shimkus anticipates House passage of Upton’s bill, but questions whether even moderates within

the Democrat-controlled Senate would put themselves “on the hook” by supporting a similar measure.

He sees Sen. Jay Rockefeller’s (D-W.Va.) proposed two-year suspension of greenhouse gas rules as the best bet for staying EPA’s hand.

That at least would quell current uncertainty that “is not helping job creation right now,” Shimkus said.

“I think there are 60 votes there — then at least you have a two-year delay while you have another election to get through,” he suggested.

“Then you can have senators campaign on whether they want to extend the delay.”

Page 3 Monday, February 14, 2011 FarmWeek

WIND ENERGY

Wind energy development shifting, becoming reliable funding source

BY KAY SHIPMAN FarmWeek

Illinois’ wind energy industry has matured in the past decade and continues to change.

Last week expert panelists discussed the changing economics, governance, and local impact of wind development during the Siting, Zoning, and Taxing Wind Farms in Illinois Conference in Normal.

“Wind energy has seen tremendous growth,” said Dave Loomis, an Illinois State University (ISU) economist and director of ISU’s Center for Renewable Energy.

The wind industry was impacted by the economic downturn and developers’ difficulty in financing new projects; however, it was not hit as severely as some sectors, Loomis said.

One trend in Illinois has been movement of development into areas that haven’t had wind energy projects.

“Statewide, we’re seeing more diffusion. We’re seeing a number of counties getting wind projects,” Loomis said. He attributed some of the shift to developers’ need for space on transmission lines to transport the energy.

Illinois has 21 online wind energy projects with generating capacity of 1,847 megawatts (one megawatt can power 1,000 homes). Currently, four projects are under construction and

Wind farms are becoming a reliable revenue source for school districts and other taxing bodies around Illinois. (FarmWeek file photo)

another 15 projects have received permits.

Southern Illinois, which has the lowest wind speeds, doesn’t have good prospects for wind energy development, Loomis noted.

In areas that have developed wind resources, the wind farms have become important, predictable sources of tax revenue to school districts and other taxing bodies.

“A wind turbine (value) is the equivalent of someone building a $600,000 home in your district,” said Superintendent Larry Dodds of Ridgeview Consolidated Unit District 19.

“The increase in equalized assessed valuation (EAV) benefits all taxing bodies,” Dodds said, adding that one township’s revenue was doubled.

Dodds used the 240-turbine Twin Groves Wind Farm to illustrate a wind farm’s impact.

Ridgeview, based in Colfax, has 161 of the farm’s turbines that added more than $31.87 million in new EAV. Another district has 73 of the turbines, and a third one has six turbines.

“The additional revenue from the Twin Groves Wind Farm has been very beneficial in these financial

times” of state budget cuts, Dodds said. “Basically, the EAV from a wind farm can help a district be less reliant on a source that is not dependable (the state).”

Ridgeview may get turbines from two more wind farms, which would be a substantial windfall for the district. Dodds estimated the district’s EAV would increase by $93 million from the three wind farms.

Dodds addressed the local government officials at the conference: “If someone asks you, ‘Is there a financial benefit (from a wind farm)?’

You’d have to say, ‘Yes.’”

Governments advised to communicate about all wind projects Adviser: Must consider rights of landowners Local officials and their constituents benefit from a clear, open, and well-communicated process for siting wind energy projects, a Wisconsinbased consultant told more than 280 county officials attending a wind energy conference last Neil Palmer week.

“Some in the public perceive wind (turbines) as a high risk.

It’s their perception. You should try to build trust and

recognize that data won’t always assure them,” said Neil Palmer of Neil Palmer & Associates LLC. Palmer gave the keynote address at the Siting, Zoning, and Taxing Wind Farms in Illinois Conference last week in Normal. It was organized by the Illinois Wind Working Group and Illinois State University’s Center for Renewable Energy.

Palmer offered local officials a laundry list of strategies for a smoother siting and permitting process. Communication topped his list. He recommended local officials make as much information as possible available at a local library and post it on the government website.

“Landowners should never be forgotten,” Palmer said.

“Farmers want to use their land as they see fit.”

Wind turbine rental payments offer farmers predictable cash flow that isn’t dependent on the weather or markets, Palmer noted. Wind turbines for one farmer meant his wife wouldn’t have to get a

second job and his daughter’s tuition was covered, he added.

Local officials should establish and explain a clear process for proposed wind farm development, determine what local staff can do and seek expertise when needed, treat all parties fairly, establish a project website, and make all documents available, said Palmer.

In counties that are new to wind farm development, officials should reach out to colleagues in experienced counties for information and suggestions, Palmer recommended.

“Work on that process,” Palmer concluded. “If not, the process can make your life worse.” — Kay Shipman

WIND ENERGY CHAT

Donations to help Chicago schools add more salad bars to cafeterias More Chicago public school students will have fresh vegetable and fruit selections thanks to donations last week from the United Fresh Produce Association and Chiquita.

With the donation of 10 new salad bars, Chicago public schools will have a total of 72 salad bars that serve thousands of students. The goal is to have 110 salad bars in school cafeterias by the end of 2011.

“Salad bars are an effective strategy for improving the healthfulness of school meals and the eating habits of students,” said Lorelei DiSogra, vice president of nutrition and health with United Fresh. DiSogra added that Chicago is a leader in a national initiative to increase salad bars in school cafeterias.

The initiative, Let’s Move Salad Bars to Schools, has a goal of installing 6,000 salad bars in schools across the country over the next three years.

Maurice Bronkema, left, a member of the Ogle County Zoning Board of Appeals, chats with Fred Iutzi with Western Illinois University’s Illinois Institute for Rural Affairs during a wind energy conference in Normal last week. Bronkema was among hundreds of county government officials who heard updates on the state’s growing wind industry and related county government issues. (Photo by Kay Shipman)

FarmWeek Page 4 Monday, February 14, 2011

TRADE

Korea FTA (nearly) done deal; Colombia, Panama problematic

BY MARTIN ROSS FarmWeek

U.S. Trade Representative Ron Kirk pledged speedy administration action to secure a U.S.South Korea free trade agreement (FTA) but warned “serious issues” must be resolved before the White House signs off on Colombia and Panama agreements.

Kirk last week told U.S. House Ways and Means Committee members the administration must address “core U.S. values and interests, such as the protection of labor rights,“ before submitting Latin American FTAs for congressional approval.

Kirk reported President Obama has instructed him to “immediately intensify engagement with Colombia and Panama with the objective of resolving the outstanding issues as soon as possible this year and bringing those agreements to Congress for consideration immediately thereafter.”

Kirk cited past Colombian violence against labor interests and urged Panamanian labor reforms and implementation of a tax information exchange treaty previously signed with the U.S. Ways and Means Chairman Dave Camp (RMich.) countered that “we need action, and the time for action is now” on all three agreements.

The U.S. International Trade Commission projects U.S. exports would increase by an estimated $1.1 billion each year under the Colombia FTA. The Panama FTA would allow more than 60 percent of U.S. ag exports to enter Panama duty-free, with remaining ag tariffs phasing out after 10 years.

While Panama is a relatively small market, Ross Korves, policy analyst with the group

Truth About Trade and Technology, argued the Panama FTA represents a “strategic” move for the U.S. Panama would effectively complete the regional alliance the U.S. began with the Central American FTA and strengthen an important export link between North and South America, he said.

“What we’re trying to do is build these free

trade agreements throughout Latin America,” Korves told FarmWeek. “And anytime you can improve a relationship with a country that has a strategic asset such as the Panama Canal, that’s to your advantage.”

Colombia and Panama are key destinations for this year’s Illinois Farm Bureau Market Study Tour, March 8-15.

Meanwhile, former ag secretaries Bob Bergland, John Block, Mike Espy, Dan Glickman, Mike Johanns, John Knebel, Ed Schafer, and Clayton Yeutter told lawmakers the Korea FTA “will offer enormous new opportunities for our products in a market that is large and growing.”

Currently, they noted, only about $14 million in U.S. ag goods enter South Korea duty-free.

The Korea FTA would immediately boost that to $3 billion in goods, and as a result, “U.S. exports to Korea will increase rapidly,” the secretaries argued.

China: Handle with care Despite the historic recent meeting between President Obama and Chinese President Hu Jintao, economist Ross Korves questions whether the atmosphere has improved between the two countries.

China remains strongly directed toward expanded trade but equally strong-willed about controlling the circumstances of trade relationships, he argues.

That said, Korves sees new opportunities for dialogue amid a variety of factors, including a shift from hard-line China critic and former House Speaker Nancy Pelosi (D-Calif.) in the new Republican-controlled House.

Even as Obama received Hu at the White House last month, the ex-speaker pounded home the message that China “must play by the rules.” Korves suggested a “more circumspect” approach might help bring about progress, especially as the U.S. addresses Chinese charges that it has “dumped” distillers dried grains (DDGs) into their market.

“They can make some fairly sharp changes in policy rather quickly, but they’ll keep coming back to doing things on their schedule, not on ours,” Korves told FarmWeek. “The more we holler, the less they’ll do. They don’t want to give the impression of knuckling under to us.

“The Chinese need to be involved in both imports and exports. The trick is how they do that while maintaining their position of power.

You have to present them with ideas, with

change, without appearing to be pushing too hard.”

Case in point: He argued China’s DDGs complaint “makes no sense,” given rising corn/input prices and the lack of significant Chinese corn inventories.

But he recognizes the pressure brought to bear on Chinese officials and believes DDG markets will hold if the U.S. submits data needed to refute dumping claims “and doesn’t try to get hard-nosed.”

Korves acknowledged the importance of Midwest trade with China, but argued a highprofile soybean purchase signing ceremony in Chicago during Hu’s U.S. visit offers little “deeper meaning” for future trade relations.

China is about to surpass Canada as the U.S.’ top ag importer, but he stressed soybeans account for roughly half that export total.

“Our big challenge is to have a broad-based agricultural trading relationship with China,” he said.

“Ultimately, it will happen when (China’s) government makes a shift to a more consumeroriented rather than an export-oriented economy, when it allows its companies to keep their foreign exchange rather than turning it into the government, so there’s more opportunity for them to buy out in the world. That will take some pressure from us, probably, but they’ll also have to see it in their best interest.” — Martin Ross

Is Russia ready for the WTO? Despite continued market challenges, the U.S. has seen the fruits of China’s 2001 accession to the World Trade Organization (WTO), according to economist Ross Korves.

But Korves, an analyst with the group Truth About Trade and Technology, questions whether Russia is yet ready for WTO membership, given its continued flaunting of international trade conventions and narrow trade focus.

Testifying last week before the U.S. House Ways and Means Committee, U.S. Trade Representative Ron Kirk outlined prospective efforts with Congress to grant Russia permanent normal trade relations (PNTR) status. PNTR would enable U.S. businesses and exporters to fully benefit from — as well as show support for — Russian accession to the WTO. Russia is the largest economy still operating outside the WTO, despite being in talks to join it since 1993.

National Pork Producers Council director of communications Dave Warner said Russia’s failure to follow WTO “rules and guidelines” has served as a barrier to U.S. pork exports.

Russia insists on certifying individual U.S. processing facilities before accepting exports from them, contrary to WTO rules requiring members to accept “equivalent” host country inspection systems.

However, Korves sees little incentive for Russia to initiate substantive market reforms and thus become an “effective” WTO member “until it decides it wants to have world-class industries competing in international markets.”

Russia has focused almost exclusively on natural gas and petroleum exports, has pushed domestic ag subsidization in an effort to minimize meat imports, and responded to last year’s severe drought conditions by cutting off wheat exports.

“When you look at the activities of the Russians over the last three or four years, there’s no indication they are moving toward ‘ There’s no indication that the kind of o n c e g e t t i n g i n t h e y ’d trade requirements that change anything.’ would be necessary for them to be members — Ross Korves Truth About Trade and Technology of the WTO,” Korves said.

“The decision to support Russia’s moving into the WTO is strictly political. It has nothing to do with economics or market access. There’s no indication that once getting in they’d change anything.”

He doubts Russian officials feel pressured to make market concessions in exchange for U.S. WTO support. Given the administration’s apparent desire to curry Russia’s favor in dealing with Iran or in strengthening global ties, Russian officials likely believe “we will eventually allow them in on their own terms,” Korves suggested.

And with health care, the South Korea free trade agreement, and other key issues dominating Congress’ current agenda, Korves questioned whether U.S. lawmakers would bother to use PNTR/WTO support as leverage for Russian reforms.

Russia is in the position China found itself a little more than a decade ago, with respect to U.S. debate over its WTO accession. But while “the Chinese will do what is in their best interest,” Korves said they are “well aware of their challenges in fitting into the world market long-term.”

“I think there is no doubt we have gained from having China in the WTO,” he told FarmWeek. “As opposed to Russia, China wanted to be involved in trade.

“China had something to gain, and therefore was willing to give up something, to commit to some of these rules, to reach an accession agreement. There’ve been huge gains from having China as part of the process.” — Martin Ross

Page 5 Monday, February 14, 2011 FarmWeek

CONSERVATION

CRP general signup March 14 through April 15

BY DANIEL GRANT FarmWeek

USDA for the second consecutive year will hold a general signup for its popular Conservation Reserve Program (CRP).

The general signup period will begin March 14 and conclude April 15. USDA through its Farm Service Agency (FSA) last year held a general signup for CRP in August.

“Not only has CRP contributed to the national effort to improve water and air quality, it has preserved habitat for wildlife and prevented soil erosion,” Ag Secretary Tom Vilsack said. CRP recently entered its 25th year.

Eligible acres include cropland that has been cropped or is

considered to be cropped four of the six years from 2002 to 2007. Acreage to be considered in the general signup also must be either located within a conservation priority area, ranked as highly erodible, or in CRP but with a contract that expires this fall.

Applications “will be ranked based on an environmental benefits index,” said Donald King, conservation program specialist with the Illinois FSA office.

Nationwide, about 4.4 million acres are in CRP contracts that expire Sept. 30. In Illinois, there is about 70,000 acres set to come out of the program.

USDA hopes producers nationwide will enroll about 4 million acres in CRP through

the general signup and through a continuous signup in order to keep acres in the program close to the maximum (32 million acres) allowed in the farm bill.

King emphasized that ground currently in CRP can be re-enrolled during the general signup.

“Ground that is in a CRP contract that expires this fall (Sept. 30) is eligible. Landowners can put in an offer,” King said. “But expiring contracts will not be automatically reenrolled” as all offers will go through the same competitive process.

The program is quite popular in Illinois — there are more than 1 million acres enrolled under 81,029 contracts. The

average CRP rental payment in the state is $113.54 per acre.

King suspects high crop prices will compete with CRP for acres. But producers/landowners will have to decide what is best for each farm.

“Certainly, producers are

going to farm some of the ground (in more sensitive areas) with (crop) prices where they’re at,” King said. “But others will take the opportunity to try to do some soil conservation.”

For more information, visit a local FSA office or the website {www.fsa.usda.gov/crp}.

IFB farm bill task force focuses on CRP future

BY MARTIN ROSS FarmWeek

Illinois Farm Bureau’s Farm Policy Task Force (FPTF) last week mulled the future of the Conservation Reserve Program (CRP) and the conditions, terms, and potential consequences of releasing CRP acres.

Meeting in Bloomington, the task force began to consider whether existing CRP acres could or should be released early and how extensive early release would impact program expense.

The current annual CRP budget is roughly $1.95 billion

— roughly a quarter of the cost of combined commodity programs. As the budget screws tighten on Capitol Hill — with some lawmakers targeting direct payments — producers are weighing all commodity, conservation, risk management spending options.

But FPTF Conservation and Energy Subcommittee Chairman Kevin Green noted removal of acres can be “very costly and very unfriendly to farmers or landowners,” who would be required to refund the entire value of their CRP contract, plus possible addi-

tional fees or penalties.

That raises several questions, Green maintained: • If USDA urged removal of acres for cost savings or “national interests” such as food or energy security, and producers were willing, should penalties be reduced or waived?

• Should guidelines be set down to prevent any early release unless it is deemed mutually beneficially to USDA and the landowner?

• Should producers be required to continue base conservation practices on lands returned to production?

PROMOTING DAIRY IN ILLINOIS

Nic Anderson, right, business developer for the Illinois Livestock Development Group, chats with Effingham Embree, a livestock export specialist from AM-CAM, a Bloomington-based company, at a display last week at the World Ag Expo in Tulare, Calif. Anderson was accompanied to the expo by Matt Berning, a dairy farmer from East Dubuque in Jo Daviess County and a member of the Illinois Milk Producers Association Board of Directors, and Jim Fraley, Illinois Farm Bureau livestock program director. Illinois and 12 other states or regions used the expo to actively promote their areas as prime locales for new dairies. (Photo by Jim Fraley)

Green’s subcommittee argued CRP release should be an option, rather than a mandate, and that more marginal, highly erodible lands should not be released even if contracts were suspended to meet food or other national needs.

Members agreed contract penalties for planting and harvesting biomass energy crops on CRP acres should remain in place to avoid the perception of producer “double-dipping.”

The panel concluded any federal savings from early releases should be used to fund programs “that support farmers,” be it commodity programs, crop insurance, ag research, the Environmental Quality Incentives Program, or

Market Access Program (MAP) export promotion efforts.

The task force also supported continuation of MAP — one of a few key programs targeted last fall by an administration-authorized “deficit commission.” MAP matches federal dollars with funds from commodity or trade groups, companies, and other exporters to finance promotional activities for U.S. ag products.

IFB Senior Commodities Director Tamara White noted MAP-supported efforts undertaken by the USA Poultry and Egg Export Council helped U.S. producers weather recent Chinese claims the U.S. was illegally “dumping” chicken products in their market.

FarmWeek Page 6 Monday, February 14, 2011

AG ECONOMICS 101

Lehman: Market fundamentals driving food price inflation

BY DANIEL GRANT FarmWeek

World food prices last month reached record levels and likely will present a challenge this year, particularly for citizens of lowincome, food-deficit countries, according to the United Nations’ Food and Agriculture Organization (FAO).

FAO’s Food Price Index, which measures the cost of a basket of basic food supplies worldwide, increased 3.4 percent in January to its highest level of all time (the index dates back to 1990).

The situation developed in recent months as commodity prices spiked to levels not seen since 2008. Oil prices this

month briefly topped out above $100 per barrel, while corn prices last week reached a 30month high.

“We are going to be facing a broader trend of increasing commodity prices, including food commodity prices,” Robert Zoellick, president of the World Bank, told Reuters news service.

The cause of the higher commodity prices, similar to 2008 when “food riots” broke out in some countries, has been blamed on everything from expanded production of biofuels to market speculation.

But David Lehman, managing director of commodity research and product development at CME Group in Chica-

go, believes the main driver of higher commodity/food prices is basic supply and demand.

“We are in a very tight supply and demand situation,” Lehman told FarmWeek. “We have very low levels of stocks for corn and soybeans.”

The amount of U.S. stocks as a percentage of consumption is just 5 percent for corn, which makes the lowest level on record, set in 1995/96, and 4.2 percent for soybeans, the lowest on record.

Meanwhile, food demand continues to rise as the economic situation improves around the world, according to Lehman.

“As long as the economy continues to recover worldwide,

and demand increases in developing countries, it’s going to continue to strain our (crop) supplies,” he said.

Lehman predicted commodity prices in the near future will remain volatile. Therefore, he believes it is critical for the markets to function without interruption.

“The markets have been more volatile recently, which usually results in more commercial hedging,” he said. “When risk goes up, there’s greater incentive to manage that risk.”

The Commodity Futures Trading Commission recently proposed establishing position limits in energy and metals markets. A public comment period

on that proposal ends March 28.

Lehman fears position limits or any other regulations that limit market participation could produce unintended consequences, such as lower liquidity in the markets and increased risk for market players, which actually could increase market volatility.

“We strongly believe (commodity/food) prices are determined by supply and demand and not by speculators,” he said.

Overall open interest in commodities markets has grown, but there has been “no clear pattern of any particular type of trader increasing his position,” Lehman added.

Specialty crop product covers specialized risks

BY MARTIN ROSS FarmWeek

Traditionally, crop risk management has been a “game” reserved largely for major commodity producers, with relatively few options for fruit and vegetable growers.

But today, specialty growers — as well as livestock producers — must look to crop insurance or alternative “coverage” to

ensure eligibility for potential federal Supplemental Revenue (SURE) disaster assistance.

Plus, newer “whole farm” coverage actually may offer specialty growers important protections within a market increasingly controlled by consumer anxieties and whims.

Adjusted Gross Revenue (AGR)-Lite coverage protects against low revenue resulting from either unavoidable natural disasters or market “fluctuations,” with most crops, animals, and animal products eligible.

While corn or soybean rev-

enue policies operate on firm base/harvest price and yield guarantees, AGR-Lite covers a greater range of market risks, including economic losses related to market response to foodborne illnesses and related product recalls or advisories.

Apples are among Illinois’ few fresh market crops eligible for a standard federal crop yield policy. Under AGR-Lite, producers could have received protection against market impacts such as the “Alar scare” of 1989, according to Roger Schnitzler of FARMCO Crop Insurance and Risk Manage-

ment, which helped bring the product to Illinois.

In that case, orchardists couldn’t sell their crop following a CBS 60 Minutes segment questioning the safety of a fruit growth promotant used by some producers.

AGR-Lite can provide protection in the event of product alerts that heavily impact consumer purchases, a strike that prevents produce distribution, or as in one recent case, heavy rains that keep customers away from U-pick strawberry operations.

“With a conventional policy, tough luck — if you’ve got the bushels, you don’t have a claim,” Schnitzler noted. “With AGRLite, you would have a claim.”

AGR-Lite revenue guarantees are based on a percentage of producer average adjusted gross revenue over the previous five years, excluding the most current year — 2005-2009 calendar year tax returns are used to calculate 2011 whole-farm guarantees.

Producers can ensure gross farm income at 65-80 percent of that average, and an income growth factor can be built into protections.

Producers can receive payments of 75 cents or 90 cents per dollar loss below guarantees — premiums are lower at the 75cent payout rate. Schnitzler stressed AGR-Lite necessitates careful producer documentation, to prove market losses or, in the case of yield losses, to verify that good crop management practices have been followed.

Further, farm-based revenue history is essential. An individual employed off-farm who launched a farm market enterprise two years ago would not be immediately eligible for AGR-Lite, while a field corn grower who switches to special-

ty crops would qualify as long as proper tax documentation is available, Schnitzler said.

The other option for Illinois specialty operators seeking SURE eligibility is the Noninsured Crop Disaster Assistance Program (NAP), a federally funded protection for growers who suffer disaster-related yield, inventory, or prevented planting losses.

NAP offers fairly cheap protection — $250 per crop “covered,” with a maximum fee of $750 per county and no more than $1,875 for combined acreages in multiple counties.

Producers who suffer a 50 percent-plus loss on a NAP-covered crop can receive payments equaling 55 percent of the crop’s established value (generally an average area price).

Unlike AGR-Lite, NAP does not cover livestock production (though aquaculture is included), and it does not protect against market-based losses.

And Schnitzler argues the economics of AGR-Lite coverage can be comparable to NAP protection. USDA provides a roughly 50 percent premium subsidy for AGR-Lite coverage, and premiums are relatively low because losses are paid on a cumulative whole-farm basis rather than on losses in individual crops.

“The nice thing about NAP is you can have 50 crops that need a NAP ‘policy,’ but the maximum they’d be charged is $750,” Schnitzler said. “It has some cost-effectiveness.

“Truth be told, though, people with maybe only $100,000 in crop income who have a fair amount of diversity could well buy an AGR-Lite policy with much better coverage for not much more than they would probably pay for a NAP policy.”

Page 7 Monday, February 14, 2011 FarmWeek

PRODUCTION

Corn supply tightens; markets under pressure

BY DANIEL GRANT FarmWeek

Historically high crop prices last week gained more support as USDA cut ending stocks of corn by 70 million bushels due to a corresponding boost in its consumption estimates.

Ending stocks of corn for 2010/11 currently are projected at 675 million bushels while soybean ending stocks were left unchanged in last week’s crop report at a razor-thin 140 million bushels.

“It’s a really tight situation,” said John Sanow, Telvent DTN grain analyst. “We’ve got a strong uptrend (in the crop markets) that likely will continue to strengthen.”

The supply situation tight-

ened last week as USDA increased its estimate of corn used for ethanol nationwide by 50 million bushels.

Residual and industrial use of corn was projected to grow by 20 million bushels, due in large part to a 15-millionbushel increase in the use of corn for high fructose corn syrup (HFCS), otherwise known as corn sugar.

“Rising corn prices have reduced spot margins,” USDA reported. “However, ethanol blenders incentives remain in place and export demand prospects remain strong with sugar-based ethanol uncompetitive at current sugar prices.”

Meanwhile, demand for U.S. HFCS has increased in Mexico

Key question with wheat this spring: ‘Keep it or kill it?’

Many farmers who planted wheat last fall (soft red winter wheat plantings in Illinois increased 124 percent to a total of 740,000 acres) could have a big decision to make this spring.

Tough winter conditions and thin wheat stands at some locations combined with strong corn and bean prices could make it very tempting for farmers in coming months to tear up wheat and plant another crop.

Chuck Mansfield, Purdue University Extension agronomist, will give his recommendations on the subject Tuesday at the Illinois Wheat Forum in Mt. Vernon with a presentation titled “Stand Evaluation — Keep It or Kill It.” The event is sponsored by the Illinois Wheat Association. stands ‘I’d encourage people not I’ve“The seen in t o j u m p t o c o n c l u s i o n s southwest Indir i g h t n o w b e c a u s e i t ana, which I are (wheat stand) looks bad.’ assume comparable to those in South— Chuck Mansfield east Illinois, Purdue University Extension agronomist tend to be nonuniform and some are rather thin,” Mansfield told FarmWeek after he concluded a scouting expedition last week.

Winter wheat conditions in Illinois as of Jan. 31 were rated 19 percent poor or very poor, 36 percent fair, and 45 percent good or excellent.

Mansfield has not seen an excessive amount of winterkill, despite frigid temperatures in recent weeks. The problems seem to be either thin stands or very small plants.

The agronomist reported a number of wheat plants exhibited a lack tillering from the fall and therefore will need temperatures to warm up soon — to at least 45 to 50 degrees and preferably with sunshine — to catch up on development.

“In some cases, there are a decent number of plants, but they’re really small,” Mansfield said. “In those situations, Mother Nature will have a lot to say” about whether the smaller plants rebound this spring.

Mansfield encouraged wheat growers to start evaluating stands in their fields. However, they should wait until the plants are jointing, which should occur in late March or early April, before deciding whether to keep or tear up the crop.

“I’d encourage people not to jump to conclusions right now because it looks bad,” he said.

As for plant counts, Mansfield said at least 25 to 30 plants per square foot generally will produce good yields. Fields with 20 to 25 plants per square foot may take a slight yield hit (10 to 15 percent) but generally should be worth leaving in the ground.

Fields with 15 to 20 plants per square foot present a “gray area.”

If the plants came up timely and have a good number of tillers, it may be worth saving the crop. But if the plants are small and don’t have many tillers, farmers may want to consider tearing it up.

Wheat fields with fewer than 12 to 15 plants per square foot are “just too thin. Go to plan B,” Mansfield advised — Daniel Grant

as Mexico increased its exports of sugar to the U.S., USDA reported.

The stocks-to-use ratio for corn last week dipped to 5 percent in the U.S., which matched the record-low set in 1995/96.

The domestic stocks-to-use ratio for soybeans also is a record low at just 4.2 percent.

USDA subsequently increased its marketing year price estimates for corn by 15 cents per bushel on the low

end to a range of $5.05 to $5.75. The estimated price range of soybeans for the marketing year remained unchanged at $11.20 to $12.20.

“It looks like we could test the all-time high (in the corn futures market) of $7.65,” Sanow said. “The real issue is how do we get enough acres of corn to refill the pipeline when wheat, beans, and cotton all need to do the same?”

Sanow believes the com-

modity markets will remain volatile prior to spring planting and weather-sensitive throughout the upcoming growing season.

“With the short supply situation, it’s going to take a strong increase in acreage and strong yields (to meet demand and rebuild stocks),” he said. “We cannot afford any type of planting delays, hot weather like last year, or wet weather like 2009.”

Weather issues could tighten wheat supply The world wheat supply, which last week was described by a market analyst as “comfortable,” could get much tighter in coming months.

Weather issues currently threaten potential wheat production this year in China and the U.S. The current threat comes on the heels of reduced harvests in Eastern Europe and Russia (drought) and Australia (floods).

“We’ve got a lot of weather problems,” said Larry Acker of 3F Forecasts in Polo, who is a featured speaker Tuesday at the Illinois Wheat Forum in Mt. Vernon. The forum is hosted by the Illinois Wheat Association.

An ongoing drought in China’s major winter wheat-producing region is “potentially a serious problem,” according to a special report issued last week by the United Nations’ Food and Agriculture Organization (FAO).

More than one-third of China’s wheat crop could be threatened by a lack of rainfall and little snowcover, FAO noted in its report.

“With China, it’s a pretty tough situation.

The weather has been cold and there’s not much snowcover,” Acker said. “That’s not a good combination when the temperature drops below 20 degrees.”

Dry and cold conditions also have been a challenge in the Southern Plains, USDA reported.

“The crop went into dormancy in real tough

shape and conditions have continued to decline,” said John Sanow, Telvent DTN grain analyst, who expects some of the wheat crop this spring to be destroyed in favor of other crops such as corn.

From Nov. 28 to Jan. 30, the portion of the winter wheat crop rated as poor or very poor increased from 26 to 52 percent in Texas, 8 to 40 percent in Oklahoma, and 25 to 37 percent in Kansas.

Winter wheat conditions in Illinois, as of Jan. 31, were rated 5 percent very poor, 14 percent poor, 36 percent fair, 42 percent good, and 3 percent excellent.

Elsewhere, a heavy snowcover in the Northern Plains could create flooding issues this spring, which could delay planting of spring wheat, corn, and soybeans.

“Long-term, I’m quite optimistic as far as (wheat) prices going up, granted input prices probably will go up as well,” said Acker, who believes crop prices will continue to be pressured by strong demand and rising energy costs.

Soft red winter wheat futures last week reached a 30-month high of $8.75 per bushel.

USDA last week subsequently raised its marketing year average price estimate for wheat by a dime on the low end to a range of $5.60 to $5.80 per bushel — Daniel Grant

FarmWeek Page 8 Monday, February 14, 2011

EDUCATION

Community colleges tapping into local food trend

BY KAY SHIPMAN FarmWeek

Six community colleges are developing courses and training programs to prepare students for careers in producing specialty crops and working in the local food sector.

The Illinois Department of Commerce and Economic Opportunity (DCEO) has supported the initiative with about $900,000 in grants over three years.

DCEO funded the pilot initiative because the agency wanted to ensure agriculture programs would be offered at community colleges, said Gary Eicken, DCEO’s manpower planner and the grant manager.

The expansion of local food programs at community colleges was one of many recommendations from the Illinois Workforce Investment Board Agriculture Task Force that released its report in November 2009.

Eicken noted some of the six colleges offer horticulture programs “but they do not have an agriculture orientation.�

The six colleges involved with the initiative are Black

Trail, Olney Central, and Wabash Valley) in Southeastern Illinois; John Wood Community College, Quincy; and Joliet Junior College, Joliet.

Each college is developing a program suited to its resources and area. For example, Black Hawk received USDA organic ‘The desired outcome certification and has devel(of the initiative) is not oped an organic producjust to have demontion curriculum and marketed crops through youstration projects, but pick operations and groalso to get agriculture cery stores. classes up and runIllinois Eastern Communing and for the stabili- nity Colleges planted a ty of these classes.’ vineyard, a fruit orchard, and vegetable crops to sell in the community through — Gary Eicken local restaurants, a farmerIllinois Department of Commerce s’ market, and grocery and Economic Opportunity store.

John Wood created a Hawk Community College’s local foods farming program east campus, Galva; Lincoln with courses and hands-on Land Community College, training in sustainable fruit Springfield; Kankakee Com- and vegetable production, munity College, Kankakee; entrepreneurship, and marIllinois Eastern Community keting. The college also Colleges (Frontier, Lincoln received U.S. Department of

Education approval for students enrolled in the program to be eligible for federal financial aid.

Many of the colleges have developed new courses and are integrating local foods into their existing curriculum, said Lavon Nelson, senior director for workforce development for the Illinois Community College Board.

The colleges have used their annual grants of about $50,000 for variety of purposes, Nelson said.

Now in the third and final year of the initiative, each college’s local foods

program is to be self sustaining by the end of June, she added. “The desired outcome (of the initiative) is not just to have demonstration projects, but also to get agriculture classes up and running and for the stability of these classes,� Eicken said.

Other community colleges also may benefit and adopt the local food curriculum and materials, Eicken said.

Students wanting more information about the local food programs should contact the participating community college in their area.

U of I schedules ExplorACES 2011 The University of Illinois will host ExplorACES, a two-day event to introduce high school students and their families to the College of Agricultural, Consumer and Environmental Sciences (ACES).

The event will be from 9 a.m. to 3 p.m. March 11 and 10 a.m. to 2 p.m. March 12.

For information, go online to {www.aces.illinois.edu/ExplorACES/} or call 217333-2728.

The website includes information about exhibits as well as an interactive map to help guide visitors through the buildings and activities.

It includes online registration for receptions for admitted freshman and others.

The event also is on Facebook and search ExplorACES, and Twitter at twitter. com/ExplorACES.

Last year more than 2,000 high school sophomores, juniors, and seniors from across Illinois attended the event, according to Kendra Courson, one of the event coordinators.

The event is run by students.

This year, ExplorACES will include more than 100 hands-on exhibits relating to classroom work, club activities, and honors research.

Visitors also may tour lab and classroom facilities and visit with ACES faculty.

ACES offers 10 undergraduate majors with 39 different concentrations.

ExplorACES helps prospective students get an overview of the potential areas of study, including bioengineering, community development, economics, human nutrition, plant breeding, and pre-veterinary studies.

Richland Community College offering agroterrorism class

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Richland Community College is accepting participants for an agroterrorism class from 8:30 a.m. to 3:30 p.m. March 22 on the Decatur campus. The registration deadline is Feb. 22.

Participants will learn basic communication processes that are used to report a suspected agroterrorism incident.

They will hear about parts of the food and agricultural system that are vulnerable to threats and attack.

They also will discuss ways agricultural materials can be used as terrorism weapons and will work to develop agricultural security plans.

The National Center for Biomedical Research and Training at Louisiana State University is offering the course as part of an agreement with the U.S. Department of Homeland Security.

For more information or to register, contact Richland Community College, Continuing and Professional Education, 1 College Park, Decatur, Ill., 62521., or call 217-875-7211, extension 261, or e-mail ldeskew@richland.edu.

Page 9 Monday, February 14, 2011 FarmWeek

AG LITERACY Heartwarming, accurate

Books teach young readers about raising, showing cattle

BY KAY SHIPMAN FarmWeek

Farmers would relate to the central characters in some new books that accurately portray farming and raising cattle, Kevin Daugherty, Illinois Farm Bureau education director, told county agriculture literacy coordinators and volunteers last week.

Illinois Agriculture in the Classroom (IAITC) focused on accurate books about farm topics for young readers during three meetings last week. Two of the featured books, “Little Joe� by Sandra Neil Wallace and “The Beef Princess of Practical County� by Michelle Houts, deal with farm children who raise and show cattle at their local county fairs. “There are lots of messages about realistic farm life (such as) you don’t have to have overalls. The story builds to what will happen at the fair,� Daugherty said about the plot of “The Beef Princess of Practical County.�

The story is told from the perspective of girl in seventh grade ‘There are lots of who lives on a central Indiana messages about farm and tackles various issues realistic farm life including BSE. The paperback is ( s u c h a s ) y o u geared toward junior high readers, IAITC has developed a d o n ’ t h a v e t o and teacher’s guide with activities and have overalls.’ questions for each chapter. “Little Joe� is written for read— Kevin Daugherty ers in third grade and older. The Illinois Farm Bureau plot centers on a third grade farm education manager boy in the eastern U.S. who also raises a bull calf to show in a county fair.

In addition to information about raising and caring for livestock, the author also discusses farm family dynamics. An IAITC teacher’s guide also has been developed for “Little Joe.�

Daugherty suggested ag literacy programs offer ag-related books for national Reading is Fun week May 8 through 14 or consider donating ag-related books to school or local libraries for National Agriculture Day on March 15.

For more information about the books and related activities or ag literacy programs, contact your local county Farm Bureau. The related lesson plans are available online at {www.agintheclassroom.org}.

Jackie Jones, standing, Illinois Farm Bureau education manager, helps (left to right) Barb Gerd, Clark County Farm Bureau ag literacy coordinator; Jenny Graham, University of Illinois Pike County ag literacy coordinator; and Jess Smithers, Facilitating Coordination in Agriculture Education district program adviser, during an ag literacy meeting last week in Bloomington. Ag literacy coordinators and volunteers made newspaper hats and other items for classroom lessons related to ag-related books. (Photo by Cyndi Cook)

Did you know? • Of the more than 3 million farm operations in the U.S., about 822,000 (27 percent) are womenowned, according to the U.S. Census of Agriculture. • The number of female farm

operators in Illinois grew by 12 percent from 1997 to 2002, up to 5,253 farms in the state, according to the Census. • Women were listed as the primary operators of 237,819

U.S. farms in 2002, about 11 percent of all the nation’s farms.

That represents a 13.4 percent increase from the 165,102 farms logged in 1997 — National Agriculture Statistical Service

MAZIMIZING EVERY ACRE

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FarmWeek Page 10 Monday, February 14, 2011

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Real-time news from thee largest farm news-gathering e ering team in the state Audio or video features support many news stories

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Page 11 Monday, February 14, 2011 FarmWeek

FarmWeek Page 12 Monday, February 14, 2011

COUNTY SPOTLIGHT

Farm safety theme of Livingston County breakfast

BY TERESA GRANT-QUICK

“Put Safety First on the Farm” was the theme last week for the first safety breakfast hosted by Livingston County Farm Bureau and Prairie Central Co-Op at the Pontiac Elks Country Club.

Because farming is a dangerous occupation, there is

need for constant refreshers for farmers on the hazards they face on a daily basis, attendees were told.

One hundred and twenty participants heard presentations about grain bin engulfment, power takeoff (PTO) shaft safety, ladder safety, and safe movement of farm equipment on roads.

John Lee, safety director for the Grain and Feed Association of Illinois, presented safety videos and pictures of an

assortment of daily ag safety hazards.

He shared some shocking nationwide statistics with the audience, such as: Using unsafe practices on ladders injured more than 500,000 people last year.

In 2010, 54 grain engulfment victims lost their lives.

Due to the fact that it only takes seconds to become buried in grain, 92 percent of victims do not survive.

Mary Kate Schopp and Rachel Lauritsen, two Pontiac High School FFA students, demonstrated the risk of playing in moving grain using a small garbage can to simulate a grain bin and a doll.

Trooper Joseph Dittmer of the Illinois State Police discussed the need for safe movement of farm equipment on roads.

He said that slow moving vehicle (SMV) signs and proper amber hazard lights (one flashing amber and two red) are required to be visible on all farm vehicles and trailers for the safety of all motorists and farmers.

Clayton Rosenberger of Chenoa, a Prairie Central Co-Op board member, stresses the importance of proper lighting on farm equipment on the roadway. (Photo by Teresa Grant-Quick)

Not using any of these may result in a $120 moving violation — or some-

one’s life, he said.

Teresa Grant-Quick is manager

Auction Calendar Tues., Feb. 15. McLean Co. Farmland.

Soy Capital Ag Services. www.soycapitalag.com Tues., Feb. 15. 10 a.m. Sloan Aten Estate, MACOMB, IL. Sullivan & Son Auction. www.sullivansonauction.com Fri., Feb. 18. 10 a.m. Estate Auction.

James Ribordy Estate, KINSMAN, IL. Immke and Bradleys’ Auction Service. biddersandbuyers.com/immke Sat., Feb. 19. 11 a.m. Hamilton Co. Farmland Auction. Buehler Heirs, MCLEANSBORO, IL. Barnard Auctions. www.auctionzip.com id#2008 or biddersandbuyers.com/barnard Mon., Feb. 21. 10 a.m. Farm machinery.

Dean and Dale Peters, GRANT PARK, IL. Kevin Kleinert and Bill Decker, Auctioneers. www.deckercompany.net Mon., Feb. 21. 10 a.m. Farm Machinery.

Lehmann Brothers and J.K. Harms Farms, Inc., , CARLINVILLE, IL. Glenn E. Karrick and Rick Stewart, Auctioneers. www.auctionzip.com #19476 Mon., Feb. 21. 7 p.m. Montgomery Co. Land Auction. Ken & Janet Easterday, RAYMOND, IL. Glenn E. Karrick, Auctioneer. www.auctionzip.com Tues., Feb. 22. 10 a.m. Estate Farm Auction. Teresa Illyes, FLAT ROCK, IL. Jeff Boston Auction Service, LLC. www.bostoncentury.com Tues., Feb. 22. 9 a.m. Consignment Auction. CARLINVILLE, IL. Rick Stewart, Auctioneer. www.biddersandbuyers.com Tues., Feb. 22. 6:30 p.m. Auction.

Warren and Ronnie Cole, SULLIVAN, IN. Halderman Real Estate Services. www.halderman.com Tues., Feb. 22. 1 p.m. Farmland Auction.

Kirby Farms, FARMER CITY, IL. Martin Auction Services, LLC.. www.martinauction.com Wed., Feb. 23. 9 a.m. Farm machinery.

Harley Davis Estate, CANTON, IL. Route 9 Auction Inc. www.laffertyauction.com Wed., Feb. 23. 11 a.m. Farm Auction.

David and Erin Hayden, FARMINGTON, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Thurs., Feb. 24. Vermilion Co. Farmland.

Soy Capital Ag Services. soycapitalag.com Thurs., Feb. 24. 6 pm.. Cass, Menard & Mason Co. Land Auction. Multiple Sellers, OAKFORD, IL. Sullivan Auctioneers. www.sullivanauctioneers.com Thurs., Feb. 24. 7 p.m. Land Auction.

Gruen and Sara Vonbehrens, STEWARDSON, IL. Krile Auction Service. www.krileauction.blogspot.com or www.auctionzip.com ID#6524 Fri., Feb. 25. 10 a.m. 60 Ac. Moultrie Co. Betty Seng Estate, MATTOON, IL.

of Livingston County Farm Bureau. Her e-mail address is tvlcfb@frontier.com.

Stanfield Auction Co. www.stanfieldauction.com Fri., Feb. 25. 9 a.m. Grundy Consignment Auction. MORRIS, IL. Richard A. Olson, Auctioneer. www.richardaolson.com Fri., Feb. 25. 11 a.m. Land Auction.

Arthur Frank Cook Exemption Trust and the Marjorie M. Cook Survivors Trust, EARLVILLE, IL. Espe Auctioneering. www.espeauctions.com Fri., Feb. 25. 9 a.m. Consignment Auction. MORRIS, IL. Richard A. Olson and Assoc. www.richardaolson.com Sat., Feb. 26. 10 a.m. Land Auction.

Marion Hale, ATWOOD, IL. Aumann Auctions. www.aumannauctions.comn Sat., Feb. 26. 9 a.m. Farm machinery.

Mike and Bonnie Shaw, DORSEY, IL. Ahrens and Niemeier. www.a-nauctions.com Sat., Feb. 26. 10 a.m. Farm machinery and misc. Margaret Prentice, CAMERON, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Sat., Feb. 26. 11 a.m. Kane Co. Land Auction. Edward and Catherine Zimmer, ELBURN, IL. Espe Auctioneering. www.espeauctions.com Fri., Mar. 4. 10:30 a.m. DeKalb Co. Farmland. Benjamin L Benson Trust No. 1010, Helen E. Benson Trust No. 102, Wayne Benson Co-Trustee and David Benson Co-Trustee, EARLVILLE, IL. Jim Elliott and Craig Elliott, Auctioneers. www.elliottauctions.net. or www.auctionzip.com (id #2927) Fri., Mar. 4. 9 a.m. and Sat., Mar. 5. 9 a.m. Consignment Auction. RANTOUL, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Mar. 5. 10 a.m. Land Auction LaSalle Co. Trust #6512, OTTAWA, IL. Richard A. Olson. richardaolson.com Tues., Mar. 8. 6:30 p.m. Quality Farmland McLean County. Nafziger, Estate of Norlan and Phyllis, STANFORD, IL. Halderman Real Estate Services. www.halderman.com Tues., Mar. 8. Ag Eq. Consignment Auction. DECATUR, IL. Taylor and Martin Real Estate/Ag Sales, LLC. www.tmras.com Thurs., Mar. 10. Warren County Farmland. Soy Capital Ag Services. www.soycapitalag.com Thurs., Mar. 10. Consignment Auction.

RAYMOND, IL. Agri-Tech, Inc. Fri., Mar. 11. 9 a.m. Consignment Auction. GREENVIEW, IL. Ron Sanert, Gordon Watkins and Eldred Nehmelman, Auctioneers. sanertauctions.com or topauctions24-7.com/nehmelman Sat., Mar. 12. 9 a.m. Consignment Auction. BALDWIN, IA. Powers Auction Service. www.powersauction.com

Page 13 Monday, February 14, 2011 FarmWeek

FROM THE COUNTIES

A

DA M S — A Viewpoint meeting will be held at 7:30 a.m. Tuesday, Feb. 22, at DJ’s Country Inn, Clayton. State Sen. John Sullivan (D-Rushville) will be the speaker. Call the Farm Bureau office at 2227305 for reservations or more information.

• A Viewpoint meeting will be at 7:30 a.m. Friday, Feb. 25, at The Lamp Lighter, Payson. State Rep. Jil Tracey (R-Mt. Sterling) will be the speaker. Call the Farm Bureau office at 2227305 for reservations or more information.

U R E AU — An Agribusiness seminar will be at 9:30 a.m. Friday, Feb. 25, at Wise Guys, Princeton. David Kohl, Virginia Tech professor emeritus of agricultural finance and small business management, and a representative from EHedger will be the speakers. Cost is $20. Call the Farm Bureau office at 815-8756468 by Friday for reservations or more information.

• Applications are available at the Farm Bureau office for the summer Agricultural Institute, which will be held in Bureau County June 13-17. Cost is $100 and enrollment is limited to 30 teachers. If a teacher is a Farm Bureau member or signs up as a member, the cost is $80. Applications are due April 29. Call the Farm Bureau office at 8756468 for more information.

• The Farm Bureau Farmers’ Market vendors will meet at 10 a.m. Monday, Feb. 21, at the Farm Bureau office. Upcoming farmers’ market season will be discussed.

A L H O U N — The annual meeting will be at 6 p.m. Saturday, Feb. 26, at the Calhoun Community High School, Hardin.

The country music band “Back in the Saddle” will provide the entertainment.

Call the Farm Bureau office for more information.

H A M PA I G N — The winter meeting series continues at 7 p.m.

Wednesday in the Farm Bureau auditorium. Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development, will discuss issues surrounding the 2012 farm bill. Call the Farm Bureau office at 217-352-5235 for more information.

• Viewpoint meetings will be Thursday at the Stage Coach, Gordyville, and Friday at JT Walker’s, Mahomet. Both meetings will begin at 11:30 a.m.

B

C

C

Lunch will be provided.

Call the Farm Bureau office for more information.

RAWFORD — The annual meeting will be at 6 p.m. Thursday at the Robinson Community Center.

Julie Root, RFD Radio Network, will be the speaker.

Call the Farm Bureau office at 618-544-3792 for reservations or more information.

• Farm Bureau has a $1,000 scholarship for a high school senior or current college student pursuing a degree related to agriculture. Applicants must be a voting member or a child of a voting member. Deadline to return applications is 4:30 p.m. Friday, March 25.

R E E N E — The Green County Farm Bureau Foundation has three $500 scholarships available to high school seniors. Scholarships will be awarded to those who will major in an agriculturerelated field of study.

Applications are available at the Farm Bureau office, high school guidance counselors, and ag teachers.

Deadline to return applications is noon March 31. Call 309-937-2411 for more information.

E R S E Y — The Jersey County Farm Bureau Foundation has two $500 scholarships available to qualified candidates. There is no course of study restriction, but a major in an agriculture-related field will be given preference.

Applications are available at the Farm Bureau office, high school guidance counselors, and ag teachers.

Deadline to return applications is noon March 31.

LASALLE — The LaSalle County Farm Bureau Foundation has two $1,000 scholarships available. One will be awarded to a high school senior who will pursue an agricultural field of study and one to a student currently enrolled in an agricultural field of study. Applications are available at the Farm Bureau office or can be downloaded from the website {www.lasalle cfb.org}. Call the Farm Bureau office at 815-4330371 for more information.

E E — Members should have received their dues notices. Return to the Farm Bureau office

by March 1. If you did not receive your notice, call the Farm Bureau office at 8573531.

• The Marketing Committee will tour the Clinton, Iowa, ADM facility Tuesday, Feb. 22. Transportation is not provided. Members

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wishing to attend or wanting more information may contact the Farm Bureau office at 857-3531 or e-mail leecfb@comcast.net.

• The Young Leader Committee will tour Allied Lock at 1 p.m. Friday, March 4. Any members ages 18-35 may attend.

Call the Far m Bureau at 857-3531 or e-mail leecfb@comcast.net to register.

ACOUPIN — A spring Outlook meeting will be at 6 p.m.

Tuesday, March 1, at the Farm Bureau office. Dinner will be served. Steve Jones, M & M Service Co. grain division manager; and Rita Frazer, WSMI ag director, will be the speakers. There is no charge for members. Cost for non-members is $10.

Call the Farm Bureau office at 217-854-2571 by Tuesday, Feb. 22, for reservations or more information.

• The Macoupin County Agriculture Education Foundation has scholarships available for students who will continue their education in an ag-related field.

Deadline to return applications is March 25. Call the Farm Bureau office at 217854-2571 for an application or more information.

A S O N — Farm Bureau will sponsor a market outlook meeting at 1:30 p.m. Friday, Feb. 25, at the Farm Bureau office.

Dale Durchholz, AgriVisor LLC, will be the speaker.

Call the Farm Bureau office at 309-543-4451 by Tuesday, Feb. 22, for reservations or more information.

E NA R D — Farm Bureau will sponsor a market outlook meeting at 9 a.m. Friday, Feb. 25, at the Farm Bureau office. Dale Durchholz, AgriVisor LLC, will be the speaker. Call the Farm Bureau office at 217632-2217 by Tuesday, Feb. 22, for reservations or more information.

E O R I A — A Stroke Detection Plus health screening will be Friday at the Farm Bureau office.

Members save $35 on all four screenings. Call 877732-8258 for an appointment.

• The Peoria County Soil and Water District annual meeting has been rescheduled to 8 a.m. Saturday at the Brimfield Grade School.

Breakfast will be served.

TA R K — Henry, Knox, and Stark County Farm Bureaus will sponsor a program, “Learn to Market Like Your Paycheck Depends on It” from 6:30 to 8:30 p.m. Thursday,

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Feb. 24, at Black Hawk College, East Campus, in the Conference Center. Cathy Ekstrand, Stewart-Peterson senior market advisor, will be the speaker. The program is geared toward farm couples. Call the Farm Bureau office at 309-2867481 for reservations or more information.

A Y N E — Farm Bureau is hosting “Crop Insurance 2011 -The Year of Change“ at 7 p.m. Tuesday, March 1, in the Foundation Hall of Frontier Community College, Fairfield. Doug Yoder, Illinois Farm Bureau risk management specialist, will be the featured speaker. Call 618-842-3342 to register or go to {www.waynecfb.com} for more information.

• The annual meeting will be held at 6 p.m. Friday, March 11, at the Cumberland Presbyterian Church, Fairfield. The program will feature a business meeting, elections, and a keynote address from Jerry Parsons of Bloomington. The Young Leader Committee will be collecting non-perishable food donations for the Harvest for All Campaign, as well as raffling an Echo CS-360 chainsaw.

Reservations are required.

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Call 618-842-3342 by March 4 to register. Go to {www.waynecfb.com} to read the complete notice of annual meeting.

• The Young Leader Committee is raffling an Echo CS-360 chainsaw to raise funds for its collegiate scholarship and safety day.

Tickets are $5 each and can be purchased at the Farm Bureau office or from a Young Leader Committee member. The drawing will take place during the annual meeting on March 11. Go to {www.waynecfb.com} and click on the chainsaw picture for more information.

H I T E — The White County Farm Bureau is hosting “Crop Insurance 2011— The Year of Change” at 1 p.m. Tuesday, March 1, in the meeting room of the Farm Bureau Building in Carmi.

Doug Yoder, Illinois Farm Bureau risk management, will be the featured speaker. Call 618-382-8512 to register. Go to {www.whitecfb.com} for more information.

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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

FarmWeek Page 14 Monday, February 14, 2011

PROFITABILITY

Grain systems market heating up — make sure yours isn’t

BY RANDY HOLTHAUS

The time to make your grain system addition/expansion/improvement decisions is right now. The price of steel has been strengthening, and most manufacturers of bins and related equipment have Randy Holthaus announced price increases.

The level of new bin and equipment orders through the fall and early winter programs was somewhat spotty.

We’ve had wild activity in

some areas while others have been eerily quiet.

That is, until late January arrived. The rumblings of price increases becoming reality combined with early discount incentives dropping off has suddenly blown the market wide open.

Order load has been heavy the last two weeks and some grain bin lead times are now out to May. Product lead times will continue to jump out quickly as the marketplace continues to react.

The construction labor schedule will fill up quickly as orders are taken and the weather improves.

Feb. 28 deadline for sorghum vote Sorghum producers have until Feb. 28 to vote on the future of the Sorghum Checkoff program.

USDA is required to hold a referendum no later than three years after the start of the program. Assessments for the sorghum checkoff began July 1, 2008.

The assessment is 0.6 of a percent of the net market value of grain sorghum and 0.35 of a percent of the net market value of sorghum forage, silage, hay, haylage, and billets.

A simple majority of voters in the referendum must approve the Sorghum Checkoff for it to continue. The referendum began Feb. 1 and will last through the end of the month.

Any person who engaged in the production or importation of sorghum from July 1, 2008, to Dec. 31, 2010, is eligible to participate in the referendum. Ballots may be obtained at local Farm Service Agency offices.

In Illinois, farmers harvested about 37,000 acres of sorghum in 2009. The top sorghum-producing counties in the state are Hamilton, Jackson, Monroe, and Wayne.

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 $33.00-63.00 $45.86 $65.00-77.82 $74.41 n/a n/a This Week Last Week 31,716 19,790 *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 $82.19 $81.72 $50.48 $50.48

Change 0.47 0.00

USDA five-state area slaughter cattle price Steers Heifers

This week $105.30 $105.50

(Thursday’s price) Prv. week Change $105.87 -0.57 $105.78 -0.28

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 125.38 1.14

This week 126.52

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 110-170 lbs. for 142171.60 $/cwt.(wtd ave. 157.88); dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 2-03-11 41.3 29.7 26.6 1-27-11 42.8 24.9 33.8 Last year 42.0 17.1 31.6 Season total 1019.1 784.8 711.1 Previous season total 990.0 568.3 704.8 USDA projected total 1570 1300 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Think back and recall the problems and issues your system had this past fall. More importantly, remember the

cooling hot grain? Are your unloading systems big enough to keep the trucks rolling?

Think back and recall the problems and issues your system had this past fall. More importantly, remember the issues you experienced during the fall of ’08 and ’09.

issues you experienced during the fall of ’08 and ’09.

Did your receiving system keep the combine running?

Was your dryer able to keep up? Was your wet holding able to keep the receiving running? Do you have a storage deficit? Was your natural air drying system able to function?

Is your storage capable of

Don’t let last year’s harvest lure you into a false sense of security. Ask yourself these questions and get those problems addressed and resolved now. The longer you wait, the more difficult it will be.

The harvest of 2010 was one of the earliest on record and conditions were nearly ideal in every way.

Considering that the grain was very high quality and was in great condition, it’s easy to forget about as it sits in storage.

Remember to inspect and observe your stored grain weekly, especially during the spring period when average air temperatures are changing rapidly. Check the surface of the grain for signs of crusting and wet, sticky, or frozen kernels.

Inspect the underside of the roof for signs of condensation. Probe the grain surface in several places with a grain thermometer on a length of rod to detect any heating.

If any of these signs appear, you must react quickly as conditions can accelerate and jeopardize the entire grain mass.

Randy Holthaus is GROWMARK’s grain systems operations manager. His e-mail address is rholthaus@growmark.com.

FarmWeek Page 15 Monday, February 14, 2011

PROFITABILITY Corn Strategy

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

Spring planting now primary focus Spring planting issues will come into focus now with big USDA events looming on the horizon. First up will be USDA’s “best guess” at what the new-crop supply/demand structure will look like at the Feb. 24-25 Outlook Forum.

Shortly after that, USDA will start to survey producers regarding their planting intentions for the March 31 Prospective Planting report.

Amid this, “trade jawboning” on what the planting mix will look like will get more intense.

We are almost half way through February, the month that spring price guarantees are set for crop insurance policies.

As of Feb. 11 they have averaged $6.04 on December corn, $13.75 on November soybeans, and $1.21 per pound on December cotton. All are well above the record-high spring guarantees set in 2008, cotton in particular. For comparative purposes, the 2008 levels were: $5.40 for corn, $13.36 for soybeans, and 79 cents for cotton.

While there are a lot of variables that will determine the final mix of plantings, these high insurance guarantees ensure plantings will expand significantly.

A look back at 2008 may offer an insight as to what may unfold this year. Plantings of all crops expanded 5 million acres in 2008, and that followed a 4-

Basis charts

million-acre increase in 2007.

The most interesting aspect was that plantings increased sharply at a time when the Midwest had major flooding.

Soybean plantings expanded the most that year, 11 million acres, because of that flooding.

Interestingly, the price ratio between corn and soybeans was not a lot better then than today, nor was it at a level that traditionally pulls land into soybeans.

Soybean acres increased because of high old-crop corn ending stocks, a reaction to the extreme jump in corn acreage in 2007, and the extreme planting delays. The latter may have had a significant impact on the ultimate mix planted that year.

Since 2008, plantings of all crops in primary corn producing areas have fallen 8.3 million acres. That is acreage that likely will come back into production, especially with the high insurance guarantees.

Unlike 2008, though, cotton will be a fierce competitor in states where it is grown. But other than in Georgia, cotton is not a big competitor in the Midsouth or the Southeast. Along with that, the decline in plantings over the last seven to 10 years shuttered a lot of local cotton gins. Even though this year is shaping up to be a good year for cotton, a lot of those gins will not be reopened for a possible “one time” event, limiting expansion of cotton plantings.

Even though acreage coming from the Conservation Reserve Program looks limited, we can still build the case that total plantings will rise 10 million acres. After doublecrop soybeans are factored in, the planted area need only rise 7.5-8 million acres.

That’s less than the decline of total plantings since 2008 in primary corn areas. And we are hearing reports of pasture land being prepared for rowcrop production this year.

What we don’t know is the mix. Spring weather will impact that. But prepare for big planting numbers on the USDA estimates that are presented at the Outlook Forum.

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Cents per bu.

2010 crop: March corn’s move above $7 potentially positioned it to move to the next upside target at $7.16.

While the market has yet to show a sign of a top, one has to remain mindful of the sixto seven-week low due at month’s end, and the 40-week low due in March. As per previous advice, you should have only “gambling bushels” remaining. If you have other inventory, use rallies to make sales. Hedge-to-arrive (HTA) contracts for winter/spring delivery still look like the best marketing tool.

2011 crop: New-crop sales should stand at 30 percent complete. Even though a top is still not apparent, December futures are trading in a range with some potentially major price targets.

Fundamentals: The 50million-bushel increase in ethanol grind was not a surprise. But the 20 million increase in other industrial use was. The current ending stocks estimate, 675 million bushels, is the lowest stocks-to-use ratio in 15 years. High insurance guarantees should prompt big new-crop plantings.

Soybean Strategy 2010 crop: Prospects for a big South American crop are becoming an increasing drag on prices. Unless the situation deteriorates again, the market will have difficulty maintaining current prices. We’d only carry “gambling” inventories into spring.

2011 crop: Better prospects for South American crops are negative for newcrop prices, too, as better crops could extend their export campaign well into fall.

Prices are too good not to have a portion of your new crop priced.

Fundamentals: China’s cancellation of purchases from our current crop and the shift of some purchases into our new crop were signs export demand has stalled.

Export shipments have fallen back close to last year’s pace, hinting USDA may be forced to revise them downward in

the future. We already may have seen the tightest supply/demand forecast.

Wheat Strategy 2010 crop: Chicago March futures closed over its previous high at $8.64 on strong export demand and a friendly USDA supply/demand report. This opened the door for prices to test psychological resistance at $9, but doesn’t guarantee it.

Complete sales if you still have inventory. This market feels exhausted. Because of the futures carry, HTA contracts for winter/spring delivery are

still the best marketing tool.

2011 crop: Use rallies above $9.30 on Chicago July 2011 futures to make catch-up sales. We’ve considered adding to them, but don’t want to price more until the crop breaks dormancy or the trend turns down.

If basis is wide on cash contracts, use HTA contracts.

Fundamentals: USDA pegged 2010/2011 world ending stocks at 177.77 million metric tons, slightly lower than its January forecast. Weather conditions in the U.S. Plains improved slightly with the blanket of snow providing some cover and moisture.

FarmWeek Page 16 Monday, February 14, 2011

PERSPECTIVES

Passion for ag draws U of I students into communications Editor’s note: University of Illinois students in the College of Agricultural, Consumer, and Environmental Sciences (ACES) embark on internship experiences across the county, state, and even the world. As future leaders of the agriculture and food industry, they have agreed to share some of their experiences with FarmWeek readers.

For many agricultural communications students at the University of Illinois, communicating about agriculture is more than just a college major. It is a passion.

Alyssa Eade, a senior in agricultural communications, recently worked for the Illinois Corn Growers Association as a social media intern. Her main task was to create a Facebook account called “Farmers Are Hot.” The purpose of the account was to help change negative perceptions of the agriculture indusAMELIA MARTENS try by targeting students and staff guest columnist on the U of I campus. She said her internship taught her the importance of educating others outside of agriculture.

“Before this internship, I did not realize how uneducated most people were about agriculture and the negative accusations being thrown around in the media to portray farmers as bad people,” Eade said.

Abby Coers, a senior in agricultural communications, served as a marketing intern in the U of I College of Agricultural, Consumer, and Environmental Sciences (ACES).

She worked with the ACES marketing director to create promotional pieces, such as advertisements and informational cards, to develop social media campaigns on Facebook, and to create videos to promote ACES and its events.

Coers’ internship reinforced her aspirations to promote agriculture and has influenced her career choice.

agricultural communications, he said that “I have learned to always pursue some- agriculture. While hosting an event on he can really see the growth in opportuthing you enjoy, and your work will reflect campus to promote her Facebook page, your passion. Through my agri-marketing Eade said she was approached by an older nities for those with a degree in this area.

“I am really impressed by the opporgentleman who made negative comments internship, I was able to work in an area I tunities for effective agricultural commuabout the ethanol industry. am passionate about while remaining in “I found this to be a great opportunity nicators,” he said. the agriculture industry,” Coers said.

Coursework, ACES career fairs, and to explain more about agriculture, Frank Chambers, another senior in knowledgeable ACES alumni have ethanol, and how America’s farmers are agricultural communications, interned helped U of I students land with Gibbs and Soell internships.

Public Relations in “The college of ACES Hoffman Estates durCareer Service Office has ing the summer of been extremely helpful in my 2010. As an intern, search for internships,” Chambers wrote and Chambers said. edited press releases, Eade explained the coursupdated and monitored es she took at the U of I preweb pages, researched pared her for working with media coverage for stosocial media. ries, and created social “A culmination of all the media monitoring techagricultural communications niques. Chambers perand advertising courses formed many of these helped me throughout the tasks for corporate internship,” Eade said. “The clients, several of which skills I gained from different were in the agriculture classes guided me through sector.

Abby Coers, a senior majoring in agricultural communications, works on a multiple phases of my internChambers’ internship provided him with brochure as part of her marketing internship with the University of Illinois Col- ship.”

A combination of U of I insight into agricultural lege of Agricultural, Consumer, and Environmental Sciences (ACES). Coers helped create materials to promote the college. (Photo courtesy U of I ACES) courses, activities, and internpublic relations. ships have helped Coers gain “It gave me an inside a deeper understanding of the agri-marcontributing in major ways to the world look into agricultural public relations and economy. For this reason and many more, keting career path she plans to pursue. helped me gain a solid understanding of As more generations are removed we need agricultural communicators to what work is like at a communications speak for the farmers and the agricultural from the farm, the agricultural industry firm as opposed to an actual corporation has a greater need for agricultural comindustry,” Eade said. or organization,” he said. municators.

Coers said her internship taught her These internships were about more “Just like a sports star has a publithan making money for the students. They valuable lessons about marketing that she cist,” Eade said, “the agriculture industry provided Coers, Eade, and Chambers with will use in her future career. and farmers need agricultural communi“Individuals become familiar with experiences in the agriculture industry that they could not have gained elsewhere and ideas through advertisements and market- cators to speak on their behalf.” taught them about the importance of agri- ing,” Coers said. “As an agricultural comAmelia Martens is a freshman from Orion munications major, my intent is to create culture communications. studying agricultural communications at the awareness of agriculture, and with my Eade said she developed her social University of Illinois College of Agricultural, media skills during her internship and tied internship, I did just that.”

Consumer, and Environmental Sciences.

Since Chambers changed his major to them in with something that she loves —

The value of biofuels is supported by hard facts and data I like the Wall Street Journal and read it every day. And I join it in being critical of government subsidies. Our government spends too much money throwing dollars JOHN at every hand BLOCK that reaches out.

However, the Journal seems to have a thing about biofuels. Recently a lead editorial attacked subsidies for ethanol.

Fine. They could be adjusted or reduced, but what about all the other energy subsidy programs? What about the billions spent on oil? What about the money thrown at solar and wind?

If we are going to protect our energy security, we need all sources of energy. Let’s produce as much of it here at home while at the same time creating jobs.

I don’t accept the assumption that ethanol is the driver of rising food prices. Energy

prices are. When prices of energy soared in 2006, food prices skyrocketed. But when energy fell in 2008, so did food prices, even though ethanol production continued to increase.

Don’t ignore the productivity of the American farmer. We are producing record crops for food and fuel, using the same acreage as two generations ago before ethanol was blended into 90 percent of American gasoline.

Can you just imagine how

the price of gasoline would explode to probably $4 per gallon if that 10 percent ethanol fuel contribution were taken away? Ethanol replaces 450 million barrels of imported oil while creating thousands of jobs in rural America.

Ethanol is a clean fuel, even though some critics don’t want to accept that fact. The Environmental Protection Agency (not always agriculture’s best buddy) reports that ethanol reduces carbon monoxide emissions, reduces benzene

emissions, and reduces carbon dioxide.

As President Ronald Reagan used to say, “Facts are stubborn things.” Big city news media should check the facts before bashing the only fuel that can replace imported oil.

John Block, a Gilson native and former U.S. agriculture secretary in the Reagan administration, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His e-mail address is jblock@ofwlaw.com.

LETTER TO THE EDITOR Agrees ‘death tax’ not proper term Editor: A letter from Joan E. Wiff of Prophetstown in the Jan. 17 issue of FarmWeek expresses my opinion that it is wrong to call the estate tax a “death tax,” but my reason is different from hers.

I think “death tax” implies that those who die don’t need their wealth any longer. The tax actually affects the heirs who may not have much income or wealth.

HELEN ROSS, Bellevue, Wash.

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