FarmWeek July 18 2011

County Farm Bureaus and individual members are encouraged to submit comments on interpretations of farm trucking rules by the Aug. 1 deadline. ..........................2

a usDa unDe rse Cre tary announced last week the agency was looking at ways to improve how it delivers information to farmers. ...............................3

a FeDeral agenCy is significantly reducing fees customers must pay to file rail freight rate or “unreasonable practice” complaints. ..............................................8

Monday, July 18, 2011

Two sections Volume 39, No. 29

Windstorms flatten thousands of corn acres

BY DANIEL GRANT FarmWeek

Potential yield on thousands of acres of corn in Illinois was blown away in a matter of minutes last week as straight-line winds cut a large swath through the region.

The storm, called a “derecho,” produced wind speeds near 70 mph, damaged crops, knocked out power, and downed tree limbs in a 550mile path from central Iowa to Detroit, Mich., with some of the worst damage on a line from northeast Iowa, across Northern Illinois, and up into southern Wisconsin.

A derecho is a long-lived, widespread, and damaging storm associated with rapidly moving showers and thunderstorms. Wind speeds in a derecho can exceed 100 mph, according to Bryce Anderson, DTN senior ag meteorologist.

“It didn’t last very long,” said Richard Beuth, who farms with his son, Paul, near Seward in Winnebago County. “But it kind of came in waves. I think that made it worse.”

Beuth this year planted about 700 acres of corn, and the majority of it (400 acres) was damaged to varying degrees by the storm.

Some of the lesser-damaged corn on Beuth’s farm as of late last week was righting itself, although it likely will be a “tangled mess to combine,” he noted. Other fields remained flat

FarmWeekNow.com Learn more about the aftermath of the storms in Illinois at FarmWeekNow.com.

in the days following the storm.

“It was looking close to a 200bushel crop,” Beuth said. “Some of it, if we get rain, still could be a good crop. But the bad stuff (at harvest) could go anywhere from zero to 50 or 60 bushels.

I’m not real optimistic about it.”

Brian Duncan, a farmer from Polo and president of the Ogle County Farm Bureau, said the storm flattened 500 acres of corn on his farm.

“The crop, overall, looked really good,” Duncan said on Thursday. “Now, I’m not sure what I’ve got.

“Some of the stuff that wasn’t hit so bad seems to be standing back up,” he continued. “But what’s flat is still flat.”

The crop’s ability to recover will depend on the severity of damage, its stage of growth at the time of the storm, and weather conditions the rest of

the season, according to Todd Thumma, a Syngenta agronomist from Morrison.

He noted damaged corn that has not tasseled has the ability to anchor in the ground and gooseneck back to a more upright growing position.

“If the reproductive portions of the plant are upright at pollination, then you can often get good ear set,” Thumma said.

However, “root-lodged corn that is horizontal at pollination will have poor ear set and often fail to pollinate the side of the ear that is facing down.”

A good portion of the damaged crop reportedly had not pollinated when the storm hit.

“I’d think (some of) the corn is young enough that it will come back up,” Bob Dyer, IFB Region 2 manager who lives in

Kankakee, said last week. “But, man, it looks bad right now.”

Overall, the strong storm knocked out power to about 847,000 ComEd customers in Northern Illinois, the Rockford Register Star reported.

The extensive loss of electricity caused by last week’s storm rivaled a 1998 ice storm See Windstorms, page 3

Richard Beuth, a farmer from Seward in Winnebago County, holds a lone corn stalk upright in this field about three miles southeast of Pecatonica that was flattened last week by a severe storm that produced windspeeds near 70 mph. The field prior to the storm appeared to have 200-bushel potential, but now Beuth is not very optimistic about it. (Photo by Roger Christin, Winnebago County Farm Bureau manager)

Analyst: U.S. debt ‘default’ unlikely prospect Periodicals: Time Valued

BY MARTIN ROSS FarmWeek

As Congress and the White House remained gridlocked over proposals to raise the U.S. debt ceiling, an AgriVisor market analyst warned ag markets ultimately could feel the “ripples” if policymakers ultimately failed to reach an accommodation — an outcome he believes is unlikely.

Ratings agency Standard & Poor’s warns it could cut the U.S.’ prized AAA world credit rating, potentially affecting trade and other global relationships if a deal is not reached soon.

Sen. Dick Durbin, a Springfield Democrat, warned last

week “it’s time to put the politics aside — for the future of business, for jobs, and for the good of the American economy.”

The ongoing debt ceiling debate itself “doesn’t mean a whole lot to the dollar,” AgriVisor’s Dale Durchholz said in an RFD Radio-FarmWeek interview. But overall global debt and worst-case prospects for a U.S. impasse pose the potential for what he termed a “negative replay” in the economy.

“The real ripples come if we technically have ‘default’ — they (Washington leaders) don’t come to an agreement to raise the ceiling and there’s no money there to pay off exist-

FarmWeek on the web: FarmWeekNow.com

ing bonds and notes that are coming due,” Durchholz said.

“Pushed against the wall, nobody in Washington’s going to let that happen.

“Talks fell apart trying to put together a bigger package — scaling back debt with something like $4 trillion in (budget) reductions.

“Now, everybody’s trying to target something roughly in the $2 trillion range, in which we’d have a contraction of future debt as we allow the debt ceiling to rise. As long as we don’t go into default, that really doesn’t matter.”

The ongoing European debt crisis and the resulting “drag

on the euro” is a more pressing currency issue, he argued.

While Greece “threw a temporary Band-Aid” on its problems, ratings analysts this month downgraded Portuguese credit essentially to “junk bond status,” and Italy now is sharing debt headlines with Ireland and Spain, Durchholz related.

At the same time, Chinese Premier Wen Jiabao reiterated efforts to target domestic inflation, hinting at additional interest rate increases. Durchholz cited “generally disappointing” Chinese trade data for June and suggested China See Debt, page 2

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

FarmWeek Page 2 Monday, July 18, 2011

Quick takes STREAMLINING A BETTER BUSINESS CLIMATE — Gov. Pat Quinn last week signed legislation that streamlines some of the state permit processes for businesses.

Under the new law, the Illinois Environmental Protection Agency (IEPA) will begin to use online permitting, processing, and tracking to make steps easier for businesses to navigate.

The new law also allows many low-polluting small businesses to register with IEPA instead of going through an extensive permit process.

The changes include many recommendations to improve the state’s business climate supported by the Vision for Illinois Agriculture.

FB ACT CALLING — Some Farm Bureau members and county managers last week received a special phone message from Illinois Farm Bureau President Philip Nelson.

The automated call was a first for FB ACT (Agricultural Contact Team). The message reminded FB ACT participants to contact members of Congress and urge them to pass free trade agreements.

Some FB ACT members and county Farm Bureau managers signed up for the new notification feature.

“We continue to evaluate the tools that we provide to our members to help them be engaged and effective,” said Liz Hobart, associate director of national legislation and policy development.

Contact your county Farm Bureau for more information about the new feature.

RFA DISPUTES USDA PROJECTION — The ethanol industry is expected to overtake the livestock sector as the biggest consumer of corn for the first time this year, according to USDA’s latest supply-anddemand report.

USDA’s estimate is based on an assumption that at least 14.1 billion gallons of ethanol will be made this year, more than the federal Energy Information Administration’s (EIA) projection of 13.7 billion gallons, according to the Washington-based Renewable Fuels Association (RFA).

“USDA is either finding ethanol production EIA is unaware of, or it is using out-of-date ethanol yields,” RFA’s Matt Hartwig said.

(ISSN0197-6680) Vol. 39 No. 29

July 18, 2011

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government

State Supreme Court upholds capital bill and truck access

BY KAY SHIPMAN FarmWeek

The Illinois Supreme Court last week upheld the constitutionality of the state’s 2009 capital bill, which included authorization for universal truck access.

The justices’ decision reversed a January 2011 appellate court ruling that the capital bill was unconstitutional and bills introduced in the General Assembly must be limited to one subject.

“It is good to see the Supreme Court rule the capital bill constitutional. What is even better is that it sets the premise for what is constitutional in the future,” said Kevin Semlow, Illinois Farm Bureau director of state legislation.

“The justices found a ‘tie’

between all the portions of the bill — that even applies to the 80,000-pound access,” Semlow continued. “The interesting note is they tied the overweight fees and where the funds go to the General Revenue Fund and how they were tied to the 80,000-pound weight limit (authorization).”

The court stated: “There are no “smoking gun” provisions ... which clearly violate the intent and purpose of the single-subject rule,” Semlow noted.

“The bottom line is that 80,000-pound weight limits are legal,” he said.

Authorization provisions for uniform truck weight limits up to 80,000 pounds have been in effect since Jan. 1, 2010.

Farmers have time to comment on truck rules Farm Bureau members still have time to comment on interpretations of farm trucking rules, according to Kevin Rund, Illinois Farm Bureau senior director of local government.

IFB recently submitted comments to the Federal Motor Carrier Safety Administration (FMCSA) and forwarded that information to county Farm Bureau offices. Those com-

ments also are available online at {www.ilfb.org} under “Issues/IFB Current Issues/Transportation.”

County Farm Bureaus and individual members are encouraged to submit comments by the Aug. 1 deadline, said Adam Nielsen, IFB director of national legislation.

Comments may be submitted online at {http://www.reg-

ulations.gov/#!submitComment;D=FMCSA-2011-01460001}.

Comments may be be faxed to 202-493-2251 or mailed to: Docket Management Facility, (M-30), US Department of Transportation (DOT), 1200 New Jersey Avenue, SE, West Building, Ground Floor, Room 12-140, Washington, DC, 20590-0001

Aug. 16 deadline for mini-bulk pesticide tank rule compliance All portable, refillable pesticide containers, commonly known as mini-bulk tanks, must meet new federal requirements by Aug. 16. After that date, any existing non-compliant tanks cannot be used.

Tank owners are responsible for ensuring their tanks meet the U.S. Environmental Protection Agency (EPA) standards that have been posted since 2009.

If a container doesn’t meet the requirements, it must be repaired or replaced and recycled.

For the past two years, agrichemical retailers and other tank owners

have been identifying the tanks that can no longer be used and those that must be modified.

After the August deadline, agrichemical dealers legally cannot fill a noncompliant tank, including those owned by a farmer or other individual.

For information about the standards and whether a tank complies, contact your agrichemical dealer or the Illinois Fertilizer and Chemical Association (IFCA) at 309-827-2774.

A guideline of mini-bulk pesticide container regulations is posted on the IFCA website at {www.ifca.com}. — Kay Shipman

Debt Continued from page 1 is “really starting to show some economic weakness.”

“I think people have to gear up and look ahead to start to see some economic drag on the market,” he advised. “It wouldn’t be like what we had in ’08, but we could have somewhat of a negative replay on the economic side impacting market prices over the next few months.”

Meanwhile, U.S. policy uncertainties on direct farm payments, future ethanol incentives, and action on key bilateral free trade agreements eventually could prove “a bit of a drag on the market,” but are not yet “overtly negative” on a day-to-day, week-to-week basis, he said.

Under a Senate plan, the 45-cent-per-gallon ethanol fuel blenders tax credit would be eliminated this summer, with savings used to pay down the deficit and fund biofuels distribution and retail infrastructure.

Congress’ one-year renewal of the credit in December served as an early “notice” of its forthcoming demise, and that prospect now is engrained in “the psychology of the industry,” Durchholz argued.

Slight, legal “over blending” above the standard 10 percent ethanol threshold is a notuncommon practice that offers fuel suppliers an economic advantage, he noted. If the credit were removed, “maybe we’d go back to underblending a little bit,” reducing cumulative demand, Durchholz said.

Page 3 Monday, July 18, 2011 FarmWeek

goverNmeNt

RC seeks ‘proactive’ approach to nutrient management

BY MARTIN ROSS FarmWeek

Amid fear of greater federal fertilizer regulation, the Illinois Farm Bureau Resolutions Committee (RC) argues IFB should be “more proactive” in helping guide nutrient management policy, according to RC Natural Resources Subcommittee Vice Chairman Jack McCormick.

The RC thus is asking county Farm Bureaus this summer to focus discussion on nutrient issues. The RC meets in November to finalize policy proposals for IFB delegate review this December in Chicago.

Midwest producers are looking with concern at U.S. Environmental Protection Agency (EPA) plans for “cleaning up” the eastern

Chesapeake Bay region, including standards for ag nutrient “total maximum daily loads.”

Some fear the Chesapeake region could serve as a trial balloon for future regulation within the Mississippi River Basin.

“We want to use the best management practices we’ve got as much as we can, and promote those, before we get the regulations,” McCormick told FarmWeek. “The U.S. EPA is actually pushing the (Illinois Environmental Protection Agency) to do more. If we can show we’re making a good faith effort, maybe we can stall that off a little bit.

“We have a huge watershed just like they do in the Chesapeake Basin. EPA can move those regulations here in a heartbeat. We’d like to be

ahead of that, if we can be.”

During a Springfield visit last week, Michael Scuse, USDA acting undersecretary for farm and foreign services and former Delaware state ag secretary, cited significant differences in environmental pressure within the Chesapeake region vs. the Mississippi River Basin.

Scuse noted explosive annual population growth within the Delmarva Peninsula, which is shared by Delaware and portions of Virginia and Maryland.

The region is one of the U.S.’ most concentrated poultry production areas.

Maryland’s 1,000 poultry farms alone create 14,700 jobs on the peninsula as well as a potentially major

USDA considers streamlining of crop reporting procedures

BY DANIEL GRANT FarmWeek

Farmers frustrated by the red tape of USDA farm programs and inaccuracies and information gaps in commodity reports could get some relief in the near future.

USDA’s Farm and Foreign Agricultural Service (FFAS) is reviewing improvements that

secretary of FFAS, met with business leaders and farmers last week at a roundtable meeting at the FSA state office in Springfield.

The timing of the meeting, in which Scuse discussed the Acreage Crop Reporting Streamlining Initiative Project, was impeccable as USDA just last month issued a crop

‘We’re looking for ways to be more responsive to farmers.’

— Michael Scuse Acting undersecretary, Farm and Foreign Agricultural Service

could be made by consolidating information required to participate in farm programs administered by the Farm Service Agency (FSA), Federal Crop Insurance Program, and the Risk Management Agency (RMA).

The Ag Department also is looking for ways to get more timely information, mostly via technology, to improve the accuracy of commodity reports issued by the National Agricultural Statistics Service (NASS).

Michael Scuse, acting under-

acreage/stocks report that confounded and angered many farmers and traders.

After it released its June acreage report, USDA announced it would resurvey farmers in some areas to get a better handle on the numbers.

“We’re looking for ways to be more responsive to farmers,” said Scuse, who grows corn, soybeans, and wheat in Delaware and formerly served as the secretary of agriculture in his home state. “This (streamlining proj-

Windstorms Continued from page 1 in the region that briefly left 865,000 ComEd customers without power, according to the Rockford newspaper.

A separate storm that blew through Tuesday also caused wind damage in parts of Southern Illinois.

“There was a lot of wind with thunderstorms and quite a bit of corn blown down, some green snap, and some lodging,” said Ken Taake, a FarmWeek Cropwatcher from Pulaski County.

“Time will tell how bad it will be.”

FarmWeekNow.com Listen to Michael Scuse’s comments about revamping USDA crop reporting procedures at FarmWeekNow.com.

ect) will allow us to achieve a lot of goals and initiatives.”

Scuse in a news conference after the roundtable meeting said precision ag technology will be a key to improving the timeliness and accuracy of NASS reports.

He believes many farmers within the next three to five years will be able use computer chips to record acreage data during planting and yield data at harvest and download that information directly to USDA county offices.

“I believe this will allow NASS to obtain more accurate and up-to-date numbers,” Scuse said.

Technology also will be the key to allowing USDA agencies, such as FSA and RMA, to share crop reports from farmers to reduce paperwork requirements.

“Ultimately (farmers) may be able to give their crop reports from home and they won’t have to go to the FSA office,” Scuse said.

The streamlining project is not intended to reduce USDA offices (there currently are 2,241 nationwide) or personnel, according to Scuse. Farmers who do not embrace technology still will be able to report crop information in person at their local FSA offices.

“This is going to help our staff, because right now our staff is pushed to the limit (during busy seasons),” he said.

“This will help us manage the workload much better.”

nutrient load within a geographically confined area.

The American Farm Bureau Federation and the National Association of Home Builders are spearheading a lawsuit against EPA’s

Chesapeake Bay plans, joined by the Fertilizer Institute, National Pork Producers Council, National Corn Growers Association, the U.S. Poultry and Egg Association, and the National Turkey Federa-

RC reviewing layers of levee authority Three federal entities have had overlapping oversight of the nation’s levees, raising concerns over future protection and development within the Mississippi River floodplain.

The Illinois Farm Bureau Resolutions Committee (RC) thus is asking members to consider whether Federal Emergency Management Agency (FEMA) levee certification authority should be transferred to the U.S. Army Corps of Engineers and the efforts of a national levee advisory committee discontinued.

Certification of a levee to protect against a major 100-year flood event relieves area resiRep. Aaron dents and businesses of floodplain developSchock ment restrictions, removes flood insurance requirements for properties under federally insured loans, and “dramatically reduces” costs for those who opt for coverage, IFB flood management specialist Kevin Rund related.

The U.S. Army Corps of Engineers inspects major levees annually, but FEMA is conducting added inspections as part of floodplain remapping and has proposed decertification on the Illinois side of the river in St. Louis’ Metro East area.

Last week, U.S. Rep. Aaron Schock, a Peoria Republican, won House approval for a flood insurance reform amendment that would delay implementation of new FEMA flood maps for five years. Schock was backed by Collinsville Republican Rep. John Shimkus and Belleville Democrat Rep. Jerry Costello.

However, IFB’s Conservation and Natural Resources Grassroots Issue Team (GRIT) argues FEMA has imposed “unreasonable standards and an unreasonable time frame to fix levee problems” prior to decertification.

“The standards FEMA uses can vary from what the Corps uses, and they haven’t finished work on levee certification on the Missouri side of the river yet,” Rund said.

“The Metro East is kind of a special case: You have tens of thousands of people, hundreds of industries, lots of businesses, and even refineries behind that levee. It’s going to be treated differently than, say, the Beardstown Levee (in Cass County), which also faces potential decertification.”

In addition, the GRIT recommends allowing levee districts adequate time for repairs prior to decertification and accounting for acceptable levels of water permeability in sand levees.

Many Illinois levees are built using sand from the river. A non-destructive amount of water may seep through sand levees, and Rund said officials can’t reasonably apply the same standards to sand and more impermeable clay levees.

Meanwhile, Hancock County Farm Bureau has asked the RC to consider supporting elimination of the National Committee on Levee Safety, a group of federal, state, local, and private sector representatives authorized in 2007 to develop a strategic plan for levee safety to Congress.

Given existing Corps inspections and Upper MississippiIllinois River flood control recommendations, the Western Illinois group argues the committee “creates unnecessary expense” and should be eliminated for budget savings.

Rund noted the panel tends to support levee improvements rather than elimination and has provided review of smaller, private levees not inspected by the Corps. At the same time, its call for uniform national levee standards may fail to consider regional differences in levee design and materials.

“There has to be some recognition that you can’t simply have one standard to build a levee and assume it’s going to work in every location,” Rund maintained. — Martin Ross

FarmWeek Page 4 Monday, July 18, 2011

EnVIronmEnt

CAT moves into biomass crop study project

BY KAY SHIPMAN FarmWeek

Biomass crop research gained a visible profile last week in Decatur when Caterpillar Inc. and the Agriculture Watershed Institute (AWI) unveiled a 65-acre project.

Traffic buzzed by as Ron Ingram, supply chain manager for the Decatur plant, and Steve John, AWI executive director, told assembled city, agribusiness, Ron Ingram and financial representatives about the prairie bioenergy demonstration plots across from Caterpillar’s plant.

“It’s a very visible example of our commitment to sustainability,” Ingram told FarmWeek. “We hope it is a good example to other companies if they have marginal

land this (perennial grass crop) is an option.”

John and Doug Gucker, AWI crop adviser, described the layout of 11 plots that have been planted with a variety of native prairie species as potential perennial bioenergy crops.

The plants’ application for conservation and environmental benefits will be studied along with the implications for wildlife habitat, according to John.

AWI will use the plots to help educate farmers and to provide technical and financial advice about biomass crop production, John said.

He estimated the 65-acre plots will yield 5 tons per acre when the plants reach full maturity in three or four years.

City officials are interested in biomass crops as a potential crop that would enhance water quality in Lake Decatur, the city’s main water source, said Keith Alexander, city director of

Tom Schwartz, front left, of FDC Grassland Services identifies a prairie plant seedling for Douglas Gucker, right, a certified crop adviser with the Agricultural Watershed Institute (AWI), and Robert Scoville, an environment associate with Caterpillar Inc., before a research plot dedication ceremony last week. AWI will study a variety of biomass crops that were planted in research plots on 65 acres in Decatur owned by Caterpillar.

(Photo by Kay Shipman)

water management.

About 500,000 farmland acres drain into the lake’s watershed.

The city is interested in having farmers grow peren-

nial energy grasses on marginal land within the watershed, Alexander added.

Last week, the tiny biomass crops were difficult to spot, but should jump to

four or five feet in height by the fall, said Tom Schwartz, a wildlife biologist with FDC Enterprises Grassland Services. FDC contributed prairie seed for plots.

Central Illinois farmer invites Obama to visit farm, promotes biomass Champaign County farmer Eric Rund didn’t pass up a chance to invite President Barack Obama to visit his rural Pesotum farm and get a first-hand glimpse of biomass crops.

Rund recently represented Illinois as one of 19 individuals from rural areas at a Rural Development meeting chaired by U.S. Agriculture Secretary Tom Vilsack at the White House. Rund, head of a biomass group, was encouraged to apply to participate in the meeting by Illinois Rural Development Director Colleen Callahan.

“He’s (Obama) from Illinois, and the University of Illinois is doing the most

work on biomass (research) in the world,” Rund said of his impromptu invitation.

The chief executive laughed and said he’d love to visit, Rund added.

During the meeting, Rund focused on farmers’ opportunities to grow “the next generation of energy crops” on less fertile land.

“It’s a look to the future,” Rund said.

The meeting, referred to as a Rural Champions of Change event, covered various challenges faced by rural residents.

One participant raised the importance of obtaining high-speed Internet in r ural areas, another talked

about the need for restoration of roads that had been destroyed by floods, while a third mentioned the marketing opportunities for locally grown food,

according to Rund.

Rund’s efforts to make a case for biomass crops didn’t stop with his fellow rural champions.

“I lobbied all the top peo-

ple,” including Vilsack, top officials in the Farm Service Agency, and several members of the Illinois congressional delegation, he said. — Kay Shipman

Central Illinois group not selected for BCAP A group of Central Illinois farmers and biomass buyers was not selected for a Biomass Crop Assistance Program (BCAP) project, but the group’s farmer leader recently discussed the project and the BCAP program with top USDA officials.

Prairie State Biomass, which covers 29 Central Illinois counties, applied to the Farm Service Agency (FSA) to be selected as a project area. Eric Rund, a Champaign County farmer, said he learned about future prospects for BCAP during a discussion with FSA officials in Washington, D.C.

Nationwide, FSA had $112 million for BCAP funding for fiscal year 2011, and the first two projects selected each cost $22 million, Rund recalled. There may be only four or five project areas in the nation based on the remaining funds, he said.

A BCAP project area is one in which one or more farmers agree to grow and sell eligible biomass crops to one or more biomass conversion facilities. Rund said he urged U.S. Agriculture Secretary Tom Vilsack to support future funding for BCAP, especially if funding for other farm programs is cut. — Kay Shipman

Cover crop to be studied as a nutrient management tool Aug. 19 workshop, demonstration set

A unique research opportunity in Central Illinois will allow farmers to see if cover crops reduce nutrient levels in field tile runoff. The project and a demonstration of seeding equipment will be the focus of an Aug. 19 workshop from 9 a.m. to noon at the Franklin Farm near Lexington.

“This is a unique set of circumstances,” said Dave Bishop, resource conservationist with the McLean County Soil

and Water Conservation District (SWCD).

Bishop referred to the project fields that have been the location of a multi-year wetland and water quality study by The Nature Conservancy and University of Illinois researcher David Kovacic.

The researchers have collected data on nutrient levels in the tile runoff and changes in nutrient levels as the water moves through a series of wetlands, said Maria Lemke, a researcher with the Conservancy.

Now with a Conservation Innovation Grant from the Natural Resources Conservation Service, the Conservancy will expand the research project to study the impact of a cover crop on tiled fields planted with a corn-soybean rotation.

A cover crop mixture of cereal rye and tillage radish will be seeded next month into standing corn on half of the study fields.

The other half won’t receive the cover crop treatment, and researchers will compare the

runoff results of the two.

“We will directly monitor the tile runoff. We know the inputs and we’ll know the (nutrient) exports. And we have baseline (background) data,” Lemke said.

In addition to the unique research site, uniquely suited equipment will be used to seed the cover crop.

A custom RoGator that can be elevated to 10 feet six inches of clearance will be demonstrated. The equipment was adapted by the father-son team of Don and Matt Birky. The

Birkys operate On Track Farming Inc. The August workshop and demonstration will include presentations about the field nutrient experiments at the farm, conservation programs, and the potential use of cover crops as a conservation practice.

There is no charge, but meal reservations are needed

by Aug. 12.

For more information or to make a reservation, contact the SWCD at 309—452-0830. — Kay Shipman

Page 5 Monday, July 18, 2011 FarmWeek

EmErging iSSUES

Locally grown sprouting buffet of interests, programs

BY KAY SHIPMAN FarmWeek

A smorgasbord of entities is focusing on locally grown food in Illinois.

Last week, Illinois Farm Bureau hosted a daylong Local Foods Connections Summit to discover the many local food initiatives taking shape in the state.

“How can we synergize our energy and all work together?” Cynthia Haskins, IFB manager of business development and compliance, asked summit participants. “We need to minimize duplication and minimize costs.”

The summit attracted about 140 representatives of government agencies, farm organizations, nonprofit groups, University of Illinois Extension, community colleges, and universities.

The diverse interests were reflected in the programs and services being developed, as well as those already

being offered to consumers and farmers.

“We have to be conscious all the time about the coexistence that is needed here ... so we can all grow,” Illinois Agriculture Director Tom Jennings told the group.

Educational initiatives ranged from community-college based food programs for students to research-based information and Extension programs for farmers.

Through the Department of Commerce and Economic Opportunity (DCEO), the state is funding educational projects, such as community college initiatives, and economic development projects to increase production of local food, said Warren Ribley, DCEO director.

Federal effor ts include USDA’s “Know Your Far mer, Know Your Food” initiative, prog rams to provide value-added g rants to

far mers, and fu n d i n g t h a t h e l p s r u r a l c o m m u n i t i e s develop local food economic opportunities, said Colleen Callahan, state director of Rural Development.

In addition to allowing the sharing of information, the summit also planted seeds for new collaboration.

For example, Illinois high school ag teachers may receive information from the U of I Extension about new food safety standards and growing practices to enhance their curriculum.

Lt. Gov. Simon links food programs with farmers and local economies The state would get more bang for its food dollar if more low-income people used LINK cards to buy produce from local growers, according to Lt. Gov. Sheila Simon.

Speaking at last week’s Illinois Farm Bureau Local Foods Connections Summit, Simon noted an increase of state food assistance purchases at farmers’ markets by people with LINK debit cards who are eligible for Supplemental Nutrition Assistant Program benefits.

Simon said her staff is seeking ways to expand the number of farmers’ markets that accept LINK cards from the current 49 markets in 20-some counties. Each dollar spent on locally grown food adds $1.34 to the local economy, she said.

“We’re not going to be able to grow everything here (in Illinois), but let’s take advantage of what we can grow,” Simon told summit participants.

“This means local jobs ... growing and transporting of

food. There is no way Illinois loses when we promote local foods,” the lieutenant governor said.

Simon said she would like her staff to help connect farmers with markets.

The lieutenant governor added she also would like to study issues that could be addressed, such as regulatory barriers to farmers, but that would not jeopardize public health. — Kay Shipman

Rural council to focus on local food and emergency services A reorganized Governor’s Rural Affairs Council will focus on two of the many issues facing rural Illinois, newly appointed members learned last week.

Locally grown food and emergency medical services surfaced as two issues that will be studied by the council and two new subcommittees, said Lt. Gov. Sheila Simon, who chaired her first council meeting since she was elected to the statewide office.

Illinois Farm Bureau Director Steve Hosselton of Louisville represents IFB on the council.

“I want to make sure the voice of rural Illinois is not lost in the shuffle of government,” Simon told council members who met last week at Lincoln Land Community College, Springfield.

Demands for emergency medical services are straining local budgets and resources in rural Illinois, said Jack Fleeharty, chief of emergency medical systems for the Illinois Department of Public Health.

“Today we can do (medical) care in the field that was unheard of before, but that brings additional expense and training,” Fleeharty said.

While rural communities usually can raise enough money to buy and even supply an ambulance, those same towns struggle to con-

tribute $200,000 to $500,000 annually to sustain ambulance services, he said.

“We’re on the frontline. We see the patients who do not have enough money to buy food and medicine,” Dottie Miles, director of the Jackson County Ambulance, told FarmWeek.

Miles noted diabetic patients have even called for an ambulance crew to check their blood sugar levels.

Fleeharty urged the council to support a state emergency medical service initiative and to help find sources of funding for those services.

Exploring opportunities for local food production also will be high on the council’s agenda.

Illinois Agriculture Director Tom Jennings, a council member, said the local food efforts need to include organic, conventional, and genetically engineered crops.

“We can’t be exclusive; all can have access to the marketplace,” Jennings told council members.

Those efforts include projects and initiatives by the Illinois Department of Commerce and Economic Opportunity (DCEO), said Tim Lindsey with DCEO. Lindsey also reported on IFB meetings with farmers and produce buyers — Kay Shipman.

IDNR exploring Asian carp for food pantry donations The Illinois Department of Natural Resources (IDNR) is exploring a better use for the invasive Asian carp it is paying commercial fishermen to take from Illinois rivers.

Jay Curtis, IDNR chief of staff, reported his agency is working with Feeding Illinois, an association of food pantries, about the possibility ‘Let’s use this for good of distributing donated and benefits for ever yprocessed fish to body.’ food pantries. Much of the fish now is ground into animal — Jay Curtis feed.

Illinois Department of Natural Curtis told the Resources Governor’s Rural Affairs Council the idea is in the development phase, but IDNR wants to build on its successful program of processed venison donations to food pantries.

He quipped the Asian carp needs a new name and suggested “silver fin” to distinguish it from bottom-feeding carp.

The agency is considering the potential of canning or freezing of the processed carp, according to Curtis.

The new market might even spark an increase in commercial fishing operations and fish processing and support native fish species, he added. Curtis estimated the carp project may happen within a year.

While eradication of Asian carp won’t happen, “one of our (IDNR) goals is to draw (populations) it down as much as possible,” Curtis told FarmWeek. “Let’s use this for good benefits for everybody.” — Kay Shipman

FarmWeek Page 6 Monday, July 18, 2011

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Every year brings different challenges and last week was no different.

Early Monday morning (July 11), straight line winds in excess of 75 mph blew through almost all of Northern Illinois and southern Wisconsin leaving lots of down corn, down trees, and power outages in the worst areas.

Unfortunately, the storm didn’t bring much rain. We only received 0.3 of an inch, but were glad to get that much. The downed corn seems to be straightening up, except for the very worst fields, but it will still make for a slower harvest. Some wheat fields are now being harvested in our area. I’ll have to give you a better report on wheat yields next week. The big story now is near 100degree heat after nearly four weeks with only 0.3 of an inch of rain. Stay safe and cool.

Pete Tekampe, Grayslake, Lake County: A severe storm passed through Lake County Monday morning (July 11).

Power was lost, trees uprooted, and corn was bent over. Corn that was 5 feet tall was only 2.5 feet tall after the storm. Some parts of the county are still without power. It looks like most of the corn straightened out, but about 3 or 4 percent was broken off. Though it was a severe storm, we only got 0.6 of an inch of rain. Luckily, a cool spell accompanied the storm, but it is supposed to start heating up again as they are calling for the 90s most of this week with not much rain. That will be tough on the corn.

Leroy Getz, Savanna, Carroll County: Rain for the week of 0.8 of an inch. Severe 75 mph wind on Monday (July 11) blew over trees and power lines in the area and flattened thousands of acres of corn across the northern counties. Very little corn green snapped — it was just pushed and flattened.

Most fields have lifted in sort of a gooseneck fashion. Corn is tasseling and silking, so it remains to be seen what effect this storm damage will have on pollination. Our farm area was not affected by this storm.

Wheat and oat fields stood excellent through it all. Hot days are causing rapid evaporation and more rain will be needed soon.

Larry Hummel, Dixon, Lee County: It was an emotional roller coaster ride this past week. It started out on a high note when my stepdaughter’s boyfriend asked her to marry him while surrounded by family and friends at our annual pig roast. Monday (July 11) looked promising with rain in the forecast and a nice storm front showing up on the radar moving in from Iowa. By 7 a.m., the mood had changed when damaging winds flattened cornfields and blew trees over. We had one field with no damage and the rest varied from completely flattened to large sections tipped at a 45-degree angle.

Mother Nature corrected some of the problems. The shorter corn is goosenecking back up to the sun and should be able to pollinate. The field across from our house already was 6 to 7 feet tall and just starting to drop pollen. It hasn’t changed much. By next week, I should be able to tell how well that pollinated.

Joe Zumwalt, Warsaw, Hancock County: Crops in Western Illinois continue to progress and are trying to recover from the excessive rains which fell here in June.

Most of the corn in the area is at or near full tassel, but the fields still are uneven. Corn on the rolling ground looks pretty decent, but the better, flat prairie and bottom ground still greatly varies in size and maturity. The soybeans are looking better and have regained some color. While the hot, dry weather is just what the doctor ordered, I’m afraid that it won’t take long to have too much of a good thing. Our crops are so shallow rooted that it won’t take too many 90-degree days to really show the heat stress. I finally was able to replant the flooded acreage last week, and I am anxious to finally unhook the planter.

Ken Reinhardt, Seaton, Mercer County: Just a couple of spotty showers last week and there is no rain in the forecast. There are some pretty large cracks in the ground.

Corn is pollinating now and the coming high temperatures will take some of the top end of the yield. Insecticides are going on with fungicides on both corn and beans. Japanese beetles continue to multiply.

Ron Moore, Roseville, Warren County: We have not received any rain for the last two weeks. I never thought I would say this, but we could use a nice shower now. The cracks in the ground are getting larger by the day. The corn is pollinating and soybeans are flowering. Spraying of fungicide has started and will continue for the next few weeks. It is forecast to be very hot and dry for the next two weeks and there is some concern about yield reduction if we don’t get some rain soon. The soybeans look good so far, but there are a lot of short beans. The pastures are starting to show some dryness and it will be harder to keep my cattle where they belong.

Tim Green, Wyoming, Stark County: Things look pretty good around here. It’s been right at a month since we’ve had a rain. A lot of people are talking about spraying Headline, when to spray it, what to spray. The Japanese beetles have a lot of people scratching their heads. They seem to be everywhere. Populations aren’t really big yet, but we are afraid they are getting bigger, so people are little bit ill at ease. The weather forecast for this week is not promising. We are hoping for an inch of rain.

Mark Kerber, Chatsworth, Livingston County: Hot and dry are the conditions. Very typical July weather. Our area missed the storms last week.

Early corn is tasseling and needs a drink. Some cornfields look like pineapple fields in the hot afternoons. You can see some firing on the bottom part of the plant. Soybeans also need a rain to put on the maximum amount of flowers. They need unstressful conditions to do this. Soybeans are very short as they were planted later than normal. Fungicide spraying in corn and soybeans will be the next field operation coming up. Producers are holding off new sales until the new crop is determined.

Ron Haase, Gilman, Iroquois County: Our last rain was on July 1. With the corn using a lot of water as it approaches or enters pollination, corn plants have been rolling their leaves to conserve moisture during the heat of the day. The forecast is for higher temperatures and dry weather. The majority of the corn in this area will be pollinating during this time. Area cornfields range from the V-10 growth stage up to the R-1 growth stage. We have not begun any fungicide applications at this point, as we wait for our corn to reach R-1. Herbicide applications in soybean fields are about wrapped up.

These applications are being made while trying to avoid spraying heat-stressed weeds. Area soybean fields range from the V-5 growth stage up to the R-3 or beginning pod growth stage. Local closing bids for July 14: nearby corn, $7.21; new-crop corn, $6.48; nearby soybeans, $13.92; new-crop soybeans, $13.51.

Brian Schaumburg, Chenoa, McLean County: Yet another week of above normal temperatures and no measurable rainfall. Growing degree units are at 1,470 and most corn is closing in on tassel (VT) to silking (R-1). Aerial fungicide applications are up next on the agenda. Heat has kept the soybean aphids at bay, but we are scouting for spider mites. Bagworms are feasting on our coniferous trees and bushes. Corn, $7.11, $6.43 fall; soybeans, $13.94, $13.44 fall; wheat, $6.62.

Steve Ayers, Champaign, Champaign County: We are in one of those areas where it is supposed to rain five minutes before it’s too late — the countdown has begun. At this critical pollination period, our eastern crop reporting district is 13 percent corn silked with 5 percent of the district very short and 32 percent short of top soil moisture. With a fiveday National Weather Service excessive heat watch from July 17-21 and minimal rain chance, we hope crops are rooted deeply enough they can handle the stress.

Champaign area did receive 0.42 of an inch of rain Wednesday morning, but much of the county has received no precipitation so far in July. Choppers and ag cats are taking to the air for fungicide spraying, as some gray leaf spot is appearing, especially in corn on corn.

Beans are 16 percent blooming and some marestail and water hemp are showing resistance, especially in no-till. Japanese beetles are active, but no concern yet. The 159th Champaign County Fair runs in Urbana from July 22-30. See you at the fair.

Wilfred Dittmer, Quincy, Adams County: Not a whole lot of news to report from our neck of the woods other than the heat is still turned on and the weather people are convinced it is going to continue, so I guess we will survive as well as the crops do.

Rain in the gauge for the week totaled 0.5 of an inch, so maybe fields can finally dry out some and get roots to going down. Many cornfields have tasseled and are doing well, while others have areas of short and tall plants. Some bean fields look like the chemicals may not have been effective or some resistance is showing up. I think most wheat is harvested and hay is being put away. Stay safe wherever you are!

Todd Easton, Charleston, Coles County: The summer heat seemed to be stressing people much more than the crops. A mid-week front brought little moisture but cooler temperatures.

Early April-planted fields are completing pollination and entering the R-2 blister stage.

May-planted fields are at the R-1 silk stage.

We are more than 100 growing degree units above the average accumulation. This should help make our harvest not be excessively late this year. The yellow planes are making fungicide applications on many of the fields and probably will be busy for a week or two. Soybean fields are still looking good as they generally are entering the R-3 beginning pod stage. All the fields I have walked through are at a good waist height with very good pod potential. Both crops showed their health by shrugging off the intense heat earlier in the week. Now all we can do is hope for a few more good showers and reasonable temperatures through the next month to bring both crops to maturity and not diminish potential yield. As we enter the famous dog days of summer, please remember to take the proper hot weather precautions for yourselves and the people and animals around you.

Jimmy Ayers, Rochester, Sangamon County: This past week we received only 0.2 of an inch of rain in two different showers. Corn is looking pretty good, and a lot of it is pollinating.

Some spray planes have been in the area. Beans have grown rather well. Markets seem to be rebounding from the government report that many of us had a hard time believing.

Ted Kuebrich, Jerseyville, Jersey County: Last week was fair week in Jersey County and that meant rain and temperatures in the 90s. Tuesday night was the fair parade, and about an hour before the start we got a storm with winds up to 40 mph. The high winds blew down and twisted corn in some parts of the county. There are more yellow and wet spots showing up in bean fields.

Prices at Jersey County Grain, Hardin: cash corn, $7.25; fall corn, $6.49; January 2012 corn, $6.71; cash beans, $13.94; fall beans, $13.46; January 2012 beans, $13.83; June/July wheat, $7.06.

Page 7 Monday, July 18, 2011 FarmWeek

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: May corn started pollinating last week. I just wish it could have all pollinated last week because it is supposed to be really hot the next 10 days, which, unfortunately, includes the Shelby County Fair July 18-20. The corn is looking very healthy here with no lesions from disease showing up yet on the plant leaves. We are starting to see Roundup-resistant water hemp in our bean fields. Some guys have cut rates in the past and it’s starting to show up in resistant weeds. It might just be part of the resistant weed seed moving up from the South, or the plant adapting for survival. Whatever the case, we are going to have to make adjustments to the herbicide program. Mowing is getting caught up. With the heat, we haven’t had much of that to do and guys are getting ready for harvest. Have a safe week and take time for family vacation.

David Schaal, St. Peter, Fayette County: On Sunday, July 10, excessive heat and humidity set in until Tuesday evening when thunderstorms moved through the area bringing with it winds that broke some corn off around the county. Replanting of beans is still going on in the Kaskaskia River bottom. There won’t be a lot of corn in the immediate area going to pollinate this week. High temperatures are to return, so we don’t know how that will work. Grain prices recovered a little for the week. Stay cool.

Dan Meinhart, Montrose, Jasper County: We had several very hot, humid days. Showers moved through the area on Tuesday evening leaving 0.1 to 0.25 of an inch. Some beans were planted this past week. The early corn has been tasseling.

Post-emerge chemicals have been applied to beans. The areas that have not received much rain the last couple weeks sure could use some now.

More hot and dry weather is in the forecast for this week.

Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.

Dave Hankammer, Millstadt, St. Clair County: The past week brought quite a change from storm warnings to heat warnings.

We have been experiencing daytime temperatures in the high 90s.

At mid-week, 0.2 of an inch of rain fell. The positive side of the high temperatures is it allowed soggy fields to dry out enough for fieldwork. Sprayers were in the fields applying post-treatment herbicides in first-crop soybeans and burndown treatment on recent planted double-cropped soybeans. We were able to get into creek bottom fields and plant the last of the first-crop soybeans. Although conditions aren’t ideal, it is time to wrap up this planting season for better or worse. Despite the heat and humidity, the corn and soybean crops seem to be thriving. Corn planted in mid-May is now tasseling. Soybeans planted in late May to early June are approximately a foot tall and starting to bloom. Some hay making is being done in the area. Local grain bids: corn, $7.19; soybeans, $13.89; wheat, $6.89.

Have a cool and safe week.

Kevin Raber, Browns, Wabash County: Rainfall of 1.25 inches this past week was pretty much finished this planting season. The corn on well-drained soils looks good, but there are many stunted and drowned-out spots in most fields. The last rain and wind caused some downed corn. I still have beans to spray, but wet soil has kept me out of those fields.

Randy Anderson, Galatia, Saline County Temperatures last week ran in the upper-90s to 100 degrees, and heat indexes were 110 to 115 degrees. The crop withstood the hot temperatures because there is no lack of moisture. We received more than 2 inches in the past week. Some early corn is having fungicide applications sprayed on. Talked to a friend in eastern Oklahoma, and he hasn’t had any rain in seven weeks. He will have to start feeding hay to his cattle this week. The main problem I see in our area is the issue of excessive rain. Looking forward to going to county fairs and enjoying the shows.

Dean Shields, Murphysboro, Jackson County: The weather last week was hot with quite a bit of rain in spots in Jackson County. Some areas had 2-3 inches and others had none, which is aggravating some of the farmers who are trying to get the creek bottoms and all of the low areas planted again. Corn is all pollinated and looking pretty decent in places. Sweet corn is being served at the supper tables now. On bean planting, we are still trying to get in the wet areas to replant and not having very good luck with that in my area. We may get the locks open to the Mississippi maybe later this week, and we will finally get the water out. I’m officially done planting and I think several other farmers are, too. The wheat crop came off pretty well, but there have been a lot of guys who were not able to double-crop their wheat because it has been too wet. A lot of bean spraying has been going on. Can’t kill those old water hemp weeds, but we are trying real hard to do that. We are mowing rights-of-way and enjoying the hot, hot weather.

Ken Taake, Ullin, Pulaski County: Hot and humid.

Typical July weather seems to be the theme for PulaskiAlexander counties this past week. We did have some thunderstorms that came through the area on Tuesday night. We received about 0.6 of an inch of rain, which was really welcome, but some areas received almost 3 inches.

There was a lot of wind with the thunderstorms and quite a bit of corn blown down, some green snap, and some lodging. Time will tell how bad it will be. There still are a few farmers trying to replant soybeans and talking about replanting more as the river goes down. It certainly continues to be a challenging year for those people. Please do remember to take time and be careful during this time of year.

Analyst: Record demand for oil could be overstated

BY DANIEL GRANT FarmWeek

Phil Flynn, senior market analyst with PFGBest’s Research, last week questioned whether oil demand this year will reach the record levels predicted by the U.S. Energ y Infor mation Administration.

Economic issues still hang over the U.S. and Europe, among other areas, and U.S. consumers appear to be cutting back their fuel consumption as prices remain well above year-ago levels.

Mastercard SpendingPulse, which tracks credit card payments, recently showed a reduction in gasoline purchases.

“I think the demand estimates (for oil) are overstated,” Flynn said last week during the 10th annual mid-year commodities panel discussion hosted by Dow Jones Indexes in Chicago.

But even if oil demand wanes the second half of this year, Flynn doesn’t look for a major break in prices. Last week, crude oil prices at the New York

U of I’s Dixon Springs plans field day The latest agronomy and horticulture research being conducted at the University of Illinois’ Dixon Springs Agricultural Center, near Simpson, will be the focus of an Aug. 4 field day.

The event will run from 9 a.m. until noon, rain or shine. Tours will depart at 9 a.m., with the final tour leaving at 10 a.m.

U of I specialists will discuss several topics, including high-tunnel production for tomatoes, high-tunnel production for small fruit, tillage in corn production, soil test variability, herbicide-resistant weeds in Illinois, and bioenerg y sorghums for Southern Illinois.

Participants also may view an antique tractor display.

The event is free and a meal will be provided.

Dixon Springs is located on Ill. 145 near Glendale. It is 25 miles south of Harrisburg.

For more infor mation, call the center at 618-695-2441.

Mercantile Exchange increased into the high $90s after a decline in the value of the dollar.

“This year, I still think oil could trend toward $85 (per barrel),” Flynn said.

Economic forces could change that prediction, though, if the federal government opts for a third round of quantitative easing in an attempt to boost economic recovery.

Auction Calendar Mon., July 18. 4:30 p.m. Estate Auction. Harold R. Grossman Estate, Beverly A. Grossman, DECATUR, IL. Cory Craig, Auctioneer. www.corycraig.com Mon., July 18. 10 a.m. Bureau Co. Farmland Auction. W.P. Gross Farm, MENDOTA, IL. Joe McConville, Marty McConville and Dick McConville, Auctioneers. www.mcconvillerealty.com Tues., July 19. 10 a.m. Ag Eq. Auction.

DECATUR, IL. Taylor and Martin Real Estate and Ag Sales, LLC. www.tmras.com Tues., July 19. Ag Eq. Consignment Auction. Taylor and Martin Real Estate/Ag Sales, LLC. www.tmras.com Thurs., July 21. 10 a.m. Closing out auction. Robert & Phyllis Brandt, LINCOLN, IL. Mike Maske Auction Service.

Thurs., July 21. 10 a.m. Ag Eq. Internet Auc. Dean Ag Services. www.purplewave.com Thurs., July 21. 10 a.m. Farmland auction. Loyola Koehler Trust. AMBOY, IL. Marty McConville, Joe McConville, auctioneers.

Quantitative easing is a tool the federal government can use to drive down long-ter m interest rates by purchasing Treasury bonds.

The strateg y is a boon to commodity markets as it essentially puts a floor under prices and helps commodities become financial instruments, according to Flynn.

“If we do QE3 (a third round of quantitative eas-

ing), I think we’ll see commodity prices soar again,” Flynn said. “We could be talking $110 to $120 (crude oil prices) if we do QE3. It would have a major impact on gasoline prices.”

The average price of gasoline (in the high-$3 range) as of last week was about 35 cents below the May peak. But prices still were up nearly $1 per gallon compared to the same time last year.

Fri., July 22. 10 a.m. Champaign Co. Land Auction. Martha Lubben Estate, ST. JOSEPH, IL. Jim Clingan Auction and Realty. www.jimclingnan.com Sat., July 23. 9 a.m. Farm equipment and miscellaneous. Rubin and Wanda Saupe, MURPHYSBORO, IL. Canning Auction Service. www.canningauctions.com Sat., July 23. 10 a.m. Farm machinery and miscellaneous. Francis Jenner Estate, Jean Jenner, MORRISON, IL. Public Auction Service. topauctions247.com/paspolo Sat., July 23. 11 a.m. 97 Ac. Marion/Wayne Co. Line. Estate of Edith Brashear, CENTRALIA, IL. Daggs Auction Co. Wed., July 27. 10 a.m. Ag Eq. Internet Auc. South Western Assoc. www.purplewave.com Tues., Aug. 2. Unreserved Public Auction. CHICAGO, IL. Ritchie Bros., Auctioneers. rbauction.com Thurs., Aug. 4. 10 a.m. Farm machinery and miscellaneous. Warren Ulfers, FAIRBURY, IL. Immke and Bradley Auction Service. biddersandbuyers.com/immke Fri., Aug. 5. 11 a.m. 255.75 Ac. Morgan Co. David R. Jackson and Reta Jackson, MURRAYVILLE, IL. Worrell-

Leka Land Services, LLC, Darrell M oore, Auctioneer. worrell-leka.com or auctionzip.com (i.d.#16215) Fri., Aug. 5. 11 a.m. Farmland and real estate. Helen Montavon Trust, COMPTON, IL. McConville Realty & Auctioneering.

Tues., Aug. 9. 10 a.m. Closing Out Farm Auction. Bill and Carol McGuire, MAROA, IL. Martin Auction Services, LLC. www.martinauction.com Thurs., Aug. 11. 1 p.m. McDonough Co. Land Auction. Barbara D. Heap Farm, MACOMB, IL. Sullivan Auctioneers. www.sullivanauctioneers.com Sat., Aug. 20. 9 a.m. Large Multi Farmer Auction. OKAWVILLE, IL. Riechmann Bros., LLC. www.riechmannauction.com, www.topauction24-7.com and www.biddersandbuyers.com Tues., Aug. 23. 83.91 Ac. LaSalle Co. Soy Capital Ag Services, www.soycapitalag.com Thurs., Aug. 25. Summer Farm Closeout and Consignment Auction.

Agri-Tech Inc., RAYMOND, IL. Wed., Sept. 7. 605 Ac. Edgar Co. Soy Capital Ag Services, www.soycapitalag.com

FarmWeek Page 8 Monday, July 18, 2011

markets

Rail complaint fees lowered; service improving?

BY MARTIN ROSS FarmWeek

Rail customer satisfaction appears to be at a recent high.

New federal reforms may assure greater satisfaction for those off the beaten track, according to Soy Transportation Coalition (STC) Executive Director Mike Steenhoek.

The federal Surface Transportation Board (STB) announced it would reduce fees customers must pay to file freight rate or “unreasonable practice” complaints against carriers from a current $20,000 to $350. Shippers have argued high fees have resulted in STB being “inaccessible to those receiving unreliable rail service or paying exorbitant rates,” A drop in fees is “very welcome news” for co-ops, small elevators, ethanol plants, and others, Steenhoek said.

“When one of the services (STB) provides is a process to seek rate relief or relief from

what may be classified as an unreasonable or burdensome practice, but you have filing fees above $20,000, it really can be a barrier for an entity to get any kind of response from the agency,” he told FarmWeek.

“First, you have to make sure the potential reward of setting foot on this path justifies that exorbitant cost.

You often incur additional costs like attorney fees that make the whole process more expensive. This very much restores the balance between railroads and rail customers.”

Steenhoek doesn’t believe the downward adjustment will open the floodgates to complaints. Large agribusinesses have greater resources to pursue grievances, while smaller, remote customers often are dependent on a single carrier and are wary of “introducing friction” into that relationship, he said.

But he suggests lower rates may spur greater carrier “customer orientation.” Steenhoek sees carriers “making some progress,” based on STC’s annual spring rail “report card.”

Union Pacific was named top performer among seven Class I railroads in STC’s second Rail Customer Satisfaction Index.

The survey included shippers of various sizes and scales and covered time performance, customer service, and costs.

Survey respondents gave 2010 last-place carrier Canadian National a 38 percent higher score, nudging it to third place. BNSF, 2010’s top-rated railroad, slipped to second place; Canadian Pacific rated lowest in performance.

Shippers provided carriers an average 10 percent higher score over 2010. Despite high grain volumes and a “com-

pressed” harvest that added to carrier pressures in 2010, Steenhoek noted “quite favorable” feedback even last fall.

Illinois Farm Bureau transportation specialist Kevin Rund reported a positive outlook at a Midwest Association of Rail Shippers conference last week.

Steenhoek cited “a pretty robust investment schedule” among key carriers, especially in response to production growth in the Northwest.

Major carriers had nearly a third of their rail cars in storage only a year or two ago.

The number of stored cars now has dropped closer to 1015 percent of the fleet, Rund said.

“That’s an indication freight shipment is coming back,” he said. “It also might speak to the fact that with high fuel prices, some freight’s been shifted from truck to rail.”

Bishop: Many challenges are ahead for agriculture

BY DANIEL GRANT FarmWeek

When it comes to feeding a larger population in the future, producing more with less will be a necessity, according to Grady Bishop, director of the U.S. swine business unit for Elanco Animal Health.

Bishop on July 27 will discuss “Using Knowledge and Technology to Satisfy Local and Global Consumer Choices” at the Illinois Farm Bureau Commodities Conference at the Marriott Hotel and Conference Center Grady Bishop in Normal. He will be the keynote speaker at the event.

“There are many challenges ahead of us” in agriculture, Bishop told the RFD Radio Network.

He noted the world population is projected to jump from 7 billion people this year to 9 billion within the next 50 years.

“If we continue to grow the population the next 50 years, we’re going to have to double (the current) amount of food production,” he said. Bishop will discuss how technology will help farmers meet that challenge.

He also will discuss how consumer buying/purchasing trends and food marketing trends will affect ag production.

Identifying consumer demands and meeting those demands also will be a focus during the breakout sessions at the event.

Dennis Vercler, IFB director of news and communications, will make a presentation titled, “Illinois Farm Families: Building Trust, One Consumer at a Time,” while Lori Laughlin, IFB director of issues management, will make a presentation titled, “Communicating with Consumers.”

More information about the Commodities Conference, including registration, is available online at {www.ilfb.org} and at county Farm Bureau offices.

Page 9 Monday, July 18, 2011 FarmWeek

ENERGY

Producers weigh pros, cons of new crop

BY MARTIN ROSS FarmWeek

Wendel Lutz recalls Illinois’ forays into canola, Austrian peas, and a parade of other would-be crop contenders that failed to take root.

But while the Champaignarea producer takes a cautious view of potential new opportunities, he told FarmWeek his “natural curiosity” remains “unscathed.” Lutz thus was willing last week to partake in eggs benedict and discussion of pennycress as a possible new source of farm revenue.

During one of a series of breakfast grower “recruitment” meetings in Bloomington, Pennycress Partners Inc. (PPI) President Brad Glenn cited “a lot of interest” in the overwintering oilseed crop. “Obviously, with this being a new crop, there are a lot of questions,” he nonetheless noted.

Pennycress can be planted as an energy/cover crop following corn or soybean harvest and harvested prior to spring planting, and its seed has a 36 percent oil content deemed optimal for renewable diesel production.

PPI seeks to contract 10,000 acres to seed this fall.

Over the course of “several hostile springs,” wheat has failed to provide Lutz the optimal rotation option he seeks. He hopes to determine whether pennycress might offer a hardier, “more dependable” winter alternative for ensuring soil health as well as an additional income source.

At the same time, given recently dicey conditions, Lutz said he must weigh the timing of pennycress harvest against the

need to deal with any spring planting complications.

“A profitable crop can take up any portion of your time,” Lutz said. “That’s OK. But it has to be profitable, you have to have distribution, you have to have a price, and you have to have a track record of a good yield.

“And the logistics have to work out — I’m as interested in the logistics of how we’re going to do this type of thing as much as in what the returns are. How are we going to handle this stuff out of the field? Do I have to hold onto it? How far away do I have to haul it or get it hauled?”

McLean grain farmer Randy Strubhar sees pennycress as a possible double-crop option that could help him extract added profit from more marginal ground. He finds the prospect of a new overwinter option “very appealing.”

Following germination, pennycress develops “rosettes” (leaf clusters) that help store energy over the winter months. Beyond contributing to hardiness, that also enables plants to flower and set seed early, “with more productivity,” according to Peter Johnsen, chief technology officer with PPI partner Arvens Technology Inc. Beyond agronomic and logistical concerns, energy crop production is a relatively new frontier. But as the “food vs. fuel” issue continues to flavor debate over corn ethanol incentives, Glenn notes pennycress is “a non-food alternative that doesn’t displace corn or soybeans,” and thus is less vulnerable to public perception.

PPI sought a development

boost through USDA Biomass Crop Assistance Program (BCAP) “project area” funding, but its application was declined at the federal level. If Congress

continues BCAP energy crop funding, “we’ll certainly take another run at it,” Johnsen told FarmWeek.

“Clearly, we have a model for

economic and environmental benefit that’s second to none,” argued Johnsen, former director of USDA’s Peoria ag research laboratory.

MAKING A STATEMENT

Darren Riskedal of Leland in LaSalle County sported a message on the back of his T-shirt last week while volunteering during the 4-H hog show at the LaSalle County Fair. Riskedal is president of FFA Section 7, which includes Somonauk, Leland, and Sandwich schools. (Photo by Ken Kashian)

FarmWeek Page 10 Monday, July 18, 2011

Page 11 Monday, July 18, 2011 FarmWeek

mArKETs

Analyst expects roller coaster ride to continue in crop markets

BY DANIEL GRANT FarmWeek

Wild price swings in the crop markets no longer are unusual.

In fact, it may be the new norm, according to Jack Scoville, vice president of Price Futures Group.

Scoville last week said projected corn prices the rest of this year could range from a low of $4.50 per bushel (although he believes the low end of the range is closer to $5.50) to a high of $8-plus.

“I expect highly volatile grain prices the next six months,” Scoville said during the Dow Jones Indexes midyear commodity outlook meeting in Chicago.

Uncertainty about potential crop yields, total acres, and weather concerns will fuel the volatility, he noted.

‘There is reason to believe there could be less than trend-line yields.’

— Jack Scoville Vice President Price Futures Group

USDA currently is resurveying farmers in some states to recalculate its crop acreage estimates. The new estimates won’t be known until next month.

Meanwhile, a recent bout of high heat and humidity with little moisture in some areas of the Corn Belt, coupled with the ongoing drought in the southern U.S., is making some traders and end-users nervous about potential crop yields.

USDA last week predicted national yield averages of 158.7 bushels per acre for corn and 43.4 bushels per acre for beans.

The majority of the corn (69 percent) and soybean crops (66 percent) last week was rated good to excellent.

However, crop development is behind after rain delayed planting, and cool temperatures earlier this season slowed growth in some areas. Last week just 14 percent of the corn crop was silking compared to 36 percent last year and the average of 26 percent.

Twenty-one percent of soybeans were blooming compared to 38 percent last year and the average of 33 percent.

“There is reason to believe there could be less than trendline yields,” Scoville said.

“That’s something the market is trying to define right now — what the potential yield losses

may be, if any, and how will it affect prices.”

Scoville projected corn prices will trade around $6.75 to $7 if there is reasonably good weather the rest of this season with a possible drop to $6 or below if crop production this season is better than expected.

“If there are indications we’ve lost yield (due to lost acres or weather issues), there could be rallies back to $7.50 to $8-plus,” he noted.

Soybean prices have an upside to about $13.50 if there are any production concerns this season. But if there is a really good crop, prices could test $10, Scoville added.

DATEBOOK July 19 University of Illinois Northern Illinois Research Center field day, near Shabbona.

Tours to start at 4 p.m. For information, contact Russ Higgins at 815-274-1343.

July 20 University of Illinois Northwest Research Center field day, Monmouth. Tours start at 9 a.m. For information, call the center at 309-734-7459.

Good agricultural practices workshop, 9 a.m. to 3 p.m., University of Illinois Extension center, Westchester. For information or to register, call 708-679-6889.

July 24 Pull and Cast for Illinois Agriculture Education, World Shooting and Recreation Complex, Sparta.

July 27

Illinois Farm Bureau Commodities Conference, Marriott Hotel and Conference Center, Normal.

July 28 University of Illinois Brownstown Research Center field day, Brownstown. Tours start at 9 a.m. For information, call 618-427-5239.

Aug. 3 Western Illinois University Allison Organic Farm field day, near Roseville, starting at 9:30 a.m. Advance registration required for morning session and lunch. Call Illinois Organic Growers at 217-454-1204.

Aug. 4 University of Illinois Dixon Springs Agricultural Research Center field day, 9 a.m. to noon, near Simpson. For more information, call Dixon Springs at 618-695-2441.

Aug. 12-21 Illinois State Fair, Springfield.

FarmWeek Page 12 Monday, July 18, 2011

trade

Ag panel views mutual benefits of trade and aid

BY MARTIN ROSS FarmWeek

Capitol Hill is a strategic command center in the war on hunger and the battle to build ag markets abroad, according to a congressionally backed Washington hunger organization.

Last week, U.S. House Ag foreign ag subcommittee Chairman Timothy Johnson, an Urbana Republican, led a farm bill hearing on trade, food aid, and ag development programs.

Subcommittee ranking Democrat Jim Costa (D-Calif.) touted the benefits of trade and aid programs “for American farmers, our economy, and in advancing our foreign policy objectives.” Ag exports support nearly 1 million jobs and a third of U.S. ag sales, officials testified at the hearing.

Suzanne Heinen, USDA Foreign Agricultural Service acting administrator, argued export development programs such as the farm bill’s Market Access Program (MAP) have been a key component in building relations between U.S.

industries and their foreign counterparts and customers.

MAP has been a repeated congressional budget target, though it survived Rep. Tim Johnson recent House proposals to eliminate program funding.

Food aid also faces the budget knife. Nancy Lindborg, U.S. Agency for International Development assistant administrator, noted many recipients of endangered federal Food for Peace Title II aid “have become self-sufficient or even food exporters and international (food) donors themselves.”

Margaret Zeigler is deputy director with the non-profit, bipartisan Congressional Hunger Center, which aims to create what she called “a new generation of anti-hunger leaders.”

Congress can help “end hunger through public policy” while building future markets for U.S.

goods, she told FarmWeek at a Washington ag-industrial development “summit.”

The House’s fiscal 2012 ag spending bill was “very hard on our traditional food aid and assistance programs,” Zeigler said. She cited Appropriations Ag Subcommittee Chairman Jack Kingston’s (R-Ga.) success in blocking moves to completely “zero out” major programs, and hoped the Senate would restore at least a share of funding struck by the House.

“The ability for the U.S. to export machinery and crops and technology and seed to developing countries can be supported by these (aid) partnerships, as well as those countries being able to export to us,” Zeigler stressed. “Trade is a win-win for everyone involved.”

Former House Select Committee on Hunger Chairman Tony Hall launched the Hunger Center in 1993. Reps. Jo Ann Emerson (R-Mo.) and James McGovern (D-Mass.) — co-chairmen of the House Hunger Caucus — are center board co-chairmen.

Latest biotech/butterfly flap underlines need for sound product data The monarch butterfly once was the mascot of the movement against Bt corn. Now, it has emerged at the center of controversy surrounding Roundup Ready corn and soybeans.

The debate focuses on the eradication of milkweed —which harbors and provides food for the insect — from at least 100 million row-crop acres. Use of glyphosate-tolerant crops has enabled widespread use of Roundup herbicides, and as a result, milkweed is “virtually gone,” said University of Kansas insect ecologist Chip Taylor.

That threatens the monarch, Taylor argued. A new paper in the Insect Conservation and Diversity journal attributes reduced winter monarch populations in central Mexico in part to milkweed “losses” in points as distant as the Midwest.

The study cites other possible factors including weather extremes, land development, and illegal Mexican logging.

Monsanto scientist Tom Helscher notes a separate study indicating reduced milkweed populations in Iowa are “poorly correlated with estimates of the size of overwintering (butterfly) populations in Mexico,” and questioned “what effects weed management has had on the migration overall.”

“The question only becomes more complex when considering the North American habitat broadly, where land use, native vegetation, climate, and farm practices differ significantly from region to region” Helscher told FarmWeek.

Biotechnology Industry Organization spokesman Karen Batra cited additional speculation that monarch populations haven’t so much declined as migratory patterns have “fluctuated” with land use and other changes.

Noting media accounts quoting one entomologist as labeling the monarch “the Bambi of the insect world,” Batra stressed the need to “keep the arguments reason-based and not emotion-based.”

That’s vital as developing nations sort the pros and cons of GMO crops that could contribute to food security, according to Margaret Zeigler, deputy director with the Congressional Hunger Center.

Zeigler sees “a real need for improvement in yields and the nutritional quality of foods,” possibly through advances in indigenous crops such as millet, sorghum, or cassava. That requires “honest dialogue” between government officials, global food agencies, biotech companies, and nations like the U.S. experienced in GMO production and regulation, she said.

She defended the federal “Feed the Future” Program and similar initiatives that provide information and support to developing country policymakers and ag/food ministries but that currently are under the congressional budget ax.

“Those budgets contain ag research support for universities in the U.S. and in partnerships overseas, to assist countries in developing policy and regulatory frameworks and better understanding the science around improved agriculture and biotechnology applications,” Zeigler told FarmWeek. — Martin Ross

Horse Days to offer equine workshops, competitions Horse Days 2011 will bring several activities and events for the first time to the Boone County Fairgrounds, Belvidere, Aug. 19-21. Illinois Farm Bureau is one of the sponsors.

The hours will be 6 a.m. to 11 p.m. each day.

A main feature will be a horse pull competition featuring horses from throughout the Midwest and Canada.

The event will include a horse show with Western and English events, a drill team demonstration with teams of miniature horses, and demonstrations and contests for dogs.

Workshops will be offered on a variety of topics, and an exhibit area will feature products and services offered by more than 100 vendors.

The daily admission cost is $7 per person at the gate. Farm Bureau members will receive a $2 discount on admission tickets.

Children younger than 12 and adults older than 65 may attend free of charge. A three-day pass is available for $35 in advance.

Campsites are available on the grounds.

For more information or to buy a three-day pass, call 866675-2783 or by go online to {www.horsedays.net}.

Page 13 Monday, July 18, 2011 FarmWeek

from the counties

C

OLES — The Coles County ag breakfast will be at 7 a.m. Tuesday, July 26, at the Lumpkin Education Center, Sarah Bush Lincoln Health Center, Charleston. Jim Angel, state climatologist, will be the speaker.

Cost is $7. Call the Farm Bureau office at 217-345-3276 for more information.

FFINGHAM — Farm Bureau is taking orders for Red Haven peaches until Monday, July 25. Cost of one bushel is $36; one-half bushel, $19; and one-fourth bushel, $10.

Delivery will be to the Farm Bureau office Thursday afternoon, July 28. Call the Farm Bureau office at 217-342-2103 for more information.

E

F

ULTON — Farm Bureau will sponsor a pool party and cookout for all members at 6:30 p.m. Friday at Big Creek Park, Canton. Call the Farm Bureau office at 5473011 for more information.

• The Women’s Committee will sponsor a pork cook-off contest at 11 a.m. Saturday, July 30, in the band pavilion at the Fulton County Fair. Prize money will be given. Entry forms are available at the Farm Bureau office and in the fair book.

Deadline to return entries is Tuesday, July 26, to the Farm Bureau office. Call the Farm Bureau office at 547-3011 for more information.

• The Marketing Committee

and the Canton Ingersoll Airport will sponsor their annual crop flyover Thursday and Friday, Aug. 4-5. Cost is $30 for members and $40 for non-members. Flights will begin at 8 a.m.

Participants will go in groups of three and are encouraged to register as groups. Deadline to register with payment is Tuesday, Aug. 2. Call the Farm Bureau office at 547-3011 to register or for more information.

EE — The Young Leader Committee at 10 a.m. Friday will tour the Patriot Renewable Fuels plant in Annawan and Mower Soil Testing Plus Inc. Lunch will be provided. Call the Farm Bureau office at 857-3531 or e-mail leecfb@comcast.net for reservations or more information.

IVINGSTON — The Livingston County Farm Bureau Foundation Board will sponsor a booth from 10 a.m. to 7 p.m. through Thursday in the Commercial Building during the Livingston County 4-H Fair. A fundraiser of up to 20 items with $1 tickets will be sold to determine the winner. A silent auction will be available for larger items. Students who have been recipients of scholarships

L

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A young attendee at the recent Jo Daviess County Farm Bureau Farm Fun Day tried her hand at holding a piglet. (Photo courtesy of Jo Daviess County Farm Bureau)

350 attend Jo Daviess Farm Fun Day

BY ANNETTE MCLANE

The weather may have been threatening rain, but a few raindrops did not stop more than 350 visitors from Apple Canyon Lake and the surrounding areas from attending the Jo Daviess County Farm Bureau’s fifth annual Farm Fun Day in late June.

Attendees had the opportunity to make ice cream, milk a cow, make butter, “drive” a John Deere tractor, prepare a “feed sack” of trail mix, create “circle of earth” bracelets, make “beanie baby” necklaces, and visit animals, including a sow and piglets, calves, sheep, and goats.

Farm Bureau board member Ron Lawfer, his wife, Julie, and son, John, brought two dairy cows that patiently waited as guests had a go at trying to milk by hand. This was by far one of the most popular activities of the day. Children kept coming back for a second or third time at milking.

“I am just happy to expose people to the world of farming and agriculture,” said Lawfer. “So many people have no idea what’s involved in bringing you a glass of milk. I really feel strongly about the farming profession, and this is why I do this. This is a passion for me.”

Farm Bureau board member George Kepner and his daughters brought a sow and piglets, and several young attendees held the piglets.

Another highlight of the day was making homemade shaken ice cream. Everyone got a workout as they shook a Ziploc bag laden with cream, milk, sugar, vanilla, ice cubes, and salt into the ice cream treat.

All in all, the day was a hit, and it was great to see everyone so excited about promoting agriculture!

Annette McLane is manager of Jo Daviess County Farm Bureau. Her email address is jdcfbmgr@blkhawk.net.

and Farm Bureau directors will work the booth during the fair.

ACON — The annual meeting and appreciation dinner will be at 6 p.m. Friday, July 29, at the Macon County Fairgrounds. Tickets are $2 and are available at the Farm Bureau office through Thursday.

OCK ISLAND — The District 3 Farm Bill Roundtable will be at 6 p.m.

Monday, Aug. 8, at the Milan Community Center. Dinner will be served. Jeff Kirwan, District 3 Illinois Farm Bureau farm policy task force member, and Adam Nielsen, Illinois Farm Bureau director of national legislation, will be the speakers.

Call the respective Farm Bureau offices by Thursday, Aug. 4, for reservations or more information.

• The Rock Island, Henry, and Mercer County Farm Bureaus will sponsor an on-the-road seminar at 10 a.m. Monday, Aug. 22, at the Reynolds Legion. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Rock Island County Farm Bureau office at 309-736-7432, the Henry County Farm Bureau office at 309-937-3960, or the

M R

Mercer County Farm Bureau office at 309-582-5116 for reservations or more information.

TARK — The Young Farmers will sponsor a kiddie pedal pull at 2:30 p.m.

Saturday during the Wyoming Corn Boil. Trophies will be awarded to the top three in the following age groups: 4 to 5, 6 to 7, 8 to 9, and 10 to 12.

• Farm Bureau will sponsor a bus trip Wednesday, Aug. 24, to Circa 21 to see Nana’s Naughty Knickers. Cost is $80, with payment due with registration. Call the Farm Bureau office at 2867481 by Aug. 3 for reservations or more information.

OODFORD — An on-the-road seminar will be at 7 p.m. Tuesday at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will provide an update on trucking and transportation of grain. Call the Farm Bureau office at 437-2347 for reservations or more information.

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

FarmWeek Page 14 Monday, July 18, 2011

profitability

Using technology to monitor your crop fields

BY SID PARKS

You’ve likely heard it said, “You can hear the corn growing!” While my ears are certainly not that good, you can definitely see rapid growth over a just a few days with good moisture and heat that we Sid Parks are experiencing this time of year.

As the corn crop nears full height, walking fields scouting for pests or irregular areas isn’t a lot of fun, especially on hot, humid days. As a result, some producers and ser vice providers alike may settle for scouting things from the road.

In these circumstances, wouldn’t it be great to see what is happening inside the field? One option you might consider is remote sensed imagery.

While not a new technolog y, remote sensed imagery is gaining popularity in recent years and for several reasons. Among these are increased access, improved technolog y, larger far ms, and higher crop prices.

Several sources of imagery are available,

including that taken by satellite or aerial sensors, mounted on airplanes or even smaller remote controlled drones.

Types of image products available vary from simple color or black and white photos, to image products derived from using other wavelengths of light.

The basic principle is plants and soils have unique light absorption and reflectance signatures. This results in the colors and textures being “seen” differently, and be used to render an image product

BY DANIEL GRANT FarmWeek

USDA last week surprised some traders when it raised its estimates of corn exports and corn used for ethanol by 100 million bushels each.

The jump in corn exports was tied to rumors of increased purchases from China.

The Ag Department also raised its projection for wheat exports by 100 million bushels.

“Everybody was kind of stepping back from the negatives (of recent price action in the crop markets)

Feeder pig prices reported to USDA* Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $17.00-$48.97 $34.84 $37.00-$69.58 $53.12 n/a n/a This Week Last Week 27,286 36,039 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $88.72 $91.62 $65.65 $67.80

Change -2.90 -2.15

USDA five-state area slaughter cattle price Steers Heifers

This week 110.74 n/a

binations of light wavelength and reflectance to reveal variation differences in crop perfor mance or occurrences of crop stress.

Types of image products include ground cover or crop density maps, relative greenness maps, soil brightness, and NDVI (Nor malized Difference Vegetation Index).

Costs for products and ser vices vary based upon product type, image resolution, frequency, and ser vice provider. Higher resolution provides sharper detail, but makes imagery

more expensive.

I would encourage you to consider how remote imagery might be of use to you in your future operation management and decision making.

Your FS crop specialist has access to tools and ser vices to help with information management, empowering you to be able to use this infor mation on your far m.

Sid Parks is GROWMARK’s manager of precision farming. His e-mail address is sparks@growmark.com.

USDA boosts corn, wheat exports but lowers price forecast

M A R K E T FA C T S

Carcass Live

that imitates crop growth or stress.

While these products can be used to identify potential areas of variability in fields, they won’t definitely tell you the cause. They can become the basis for developing management zones, or help direct attention to a particular area in a field for ground-based scouting.

Other uses include monitoring damage from stor ms, or estimating potential crop yields.

Remote sensed image products use various com-

(Thursday’s price) Prev. week Change 114.00 -3.26 137.48 n/a

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 137.48 1.85

This week 139.33

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-185 lbs. for 191.32-220 $/cwt. (wtd. ave. 204); dressed, no sales reported.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 7-07-11 4.5 21.1 31.7 6-30-11 5.2 25.5 36.5 Last year 7.1 14.2 38.8 Season total 1428.6 124.5 1517.6 Previous season total 1377.3 87.3 1571.9 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

thinking China is going to come to the market in a big way,” Dale Durchholz, AgriVisor market analyst, told the RFD Radio Network. “That remains to be seen.”

Large supplies of corn, wheat, and soybeans, however, are expected to keep a lid on prices despite the bump in usage projections.

Season-average crop price estimates last week were lowered by 40 cents to as much as $1 per bushel (see graphic).

USDA last week projected U.S. winter wheat production this year will total 1.49 billion bushels, up 3 percent from last month.

The national average wheat yield was projected at 46.2 bushels per acre.

In Illinois, the average wheat yield was projected at 61 bushels per acre, down 1 bushel from the June estimate. Wheat harvest as of the first of last week was 86 percent complete statewide, just 1 percent behind the five-year average pace.

Meanwhile, USDA last week raised its corn production estimate for the U.S. by 270 million bushels and boosted ending stocks 175 million bushels to 870 million bushels based on last month’s larger-than-

expected estimate of planted acres (92.3 million).

“The usage numbers underpin the importance of the next six to eight weeks,” said Brian Basting, market analyst with Advance Trading, during a teleconference hosted by the Minneapolis Grain Exchange. “It’s critical we get a good finish this season.

“We’ve seen indications of quite a bit of heat in a lot of areas (in the U.S.),” he continued. “Heat is not good for corn, especially at pollination.”

Basting believes USDA, which currently is resur veying some far mers about planted acres, ultimately could revise its acreage estimates for corn and wheat.

The amount of spring wheat acres expected to be har vested for grain was left unchanged from last month at 13.2 million acres.

“That number has to be taken with a grain of salt,” Basting said. “We expect some reduction of the numbers next month, with estimates of a half-million to one million acres lost (from spring wheat production due to flooding in the northern Corn Belt).

For soybeans, USDA last week reduced its production estimate by 60 million bushels to 3.225 billion bushels, estimated a national yield average of 43.4 bushels per acre, trimmed exports by 25 million bushels (to 1.495 billion bushels), and lowered ending stocks by 15 million bushels to 175 million bushels.

Page 15 Monday, July 18, 2011 FarmWeek

PROFITABILITY Corn Strategy

C AS H ST RAT E GI S T

Wheat is key to corn market The corn trade seems to be wholly focused on the plight of that particular market, forgetting the implications wheat could have on the fundamental structure. This is especially true in the world where wheat is fed more aggressively than it is in the U.S. The trade should have been reminded of the substitutability a couple of weeks ago when The Andersons indicated it was blending wheat into corn to be processed at its ethanol plants. Wheat has long been used for that purposed in the European Union (EU).

But amid the emerging weather concern and Chinese corn buying, it’s the U.S. and world corn/coarse grain fundamentals that have gotten the most focus.

The recent estimates for the world coarse grain supply/demand structure suggest potential for record tightness as indicated by stocks as a percent of use, or days of supply at the end of the marketing year.

But if one adds wheat into the mix, neither the world situation as a whole, nor the situation outside of the U.S. and China, is as tight as it was in 2006/2007 or 2007/2008. Even though

wheat production is only 60 percent as big as coarse grain, it’s still a formidable supply.

According to the most recent indications, world wheat output could get slightly larger.

Russian crop expectations have increased because of good early yields. A key private analyst raised EU wheat output nearly 5 million metric tons (mmt.), 183.5 million bushels, because of good yield reports.

Outside of the U.S. and China, there’s an extra 10 mmt., and maybe as much as 15 mmt. of wheat and coarse grain compared to the two years mentioned. That’s equivalent to 400 million to 600 million bushels of corn.

That extra supply, along with persistent high prices, could cut into export demand for U.S. corn and wheat. That would leave extra supplies to meet potential Chinese corn imports, and domestic feed demand. And as long as wheat remains abundant and cheap, China might choose to buy it in lieu of corn.

So amid the current excitement about weather and the potential implications on corn output, remember there are other factors that just as quickly could be diminishing demand. A severe drought and a sharp decline in corn output might be the only feature that could alter this picture.

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Cents per bu.

ü2010 crop: If you still have old-crop, make sure basis is locked up. Use rallies near the $7.23 high on December to complete pricing. ü2011 crop: The corn market is a classic weather market. It’s important to remember, once it peaks, the initial break usually is faster than the rally. The trend for 20-week low due in early August still implies softer markets are ahead. Strong resistance on December futures starts at $7.23. Use rallies above $7.05 for catch-up sales.

We might recommend adding a small sale at any time; check the Hotline frequently. vFundamentals: Demand may have been the story in the wake of the USDA supply/demand forecasts. But now, the focus is wholly on supply. While everyone is focused on the supply, and the heights prices might be carried to, they forget that higher prices do have negative demand repercussions. xFail-safe: If December falls through $6.60, make sure sales are at recommended levels.

Soybean Strategy

ü2010 crop: With prices back near the winter highs, it’s time to dispose of any inventories you might have. ü2011 crop: Production risk is the big unknown, but August weather is more important to soybeans than July weather.

There’s still a chance of seeing new highs, but soybeans have had difficulty moving above $14 all year. Use strength for catchup sales. We could add a small sale at any time; check the Hotline frequently. vFundamentals: Supply is the cornerstone of current strength, along with prices remaining historically low relative to corn. But the persistence of high prices is having negative repercussions on demand. New-crop export sales are not increasing as fast as they were last year at this time. And poor margins continue to undermine our domestic processing market.

The first estimate on June’s crush was 1 million bushels

less than expected. xFail-safe: Make sure sales are at recommended levels if November drops below $13.75.

Wheat Strategy

ü2011 crop: The shortterm technical picture in wheat has improved and a significant low may have been established. The market could gain momentum with harvest pressure starting to ease. Increase sales to 65 percent if Chicago September futures trade to $7.69. We prefer hedge-toarrive contracts for winter or spring delivery if you have the

capability to store wheat because of the large carry. vFundamentals: The wheat market is riding the coattails of corn higher, as the overall fundamental picture in wheat remains neutral to negative.

Winter wheat harvest in the Great Plains is peaking with 63 percent done. Weather also is benefiting the late-planted spring crop in the U.S. and Canada.

Export business remains routine, with Black Sea countries aggressively competing for world business. Their production expectations continue to improve, as do those in Western Europe.

FarmWeek Page 16 Monday, July 18, 2011

pERSpEcTIvES

Finding the Food deserts

ACross illinois Recently I went to the homepage of the U.S. Department of Agriculture.

Among the subjects highlighted on the homepage were childhood obesity, waste water treatment plants, climate change, rooftop gardening, energy, and dietary guidelines. All of these are important but not topics I expected USDA to highlight.

I did see something on food and decided to follow that link because of the relationship between food and agriculture.

WILLIAM As a result of that BAILEY simple decision, I learned that Macomb has something in common with Bloomington and Pekin.

And Goofy Ridge (an unincorporated community in Mason County) has something in common with Peoria Heights.

The link I followed discusses food deserts in the United States.

The phrase, food deserts, was new to me. But since it was featured on the USDA homepage, I assumed it was fully understood in Washington, D.C., but perhaps less well so outside the Beltway.

It turns out food deserts have been discussed in lead stories in a number of publications, including Time magazine and the Chicago Tribune. It is good to know that those two publications are now following activities at USDA. So what is a food desert? It is defined by USDA as “low-income communities without ready access to healthy and affordable food.”

To qualify as a low-income community, income in the area must fall below certain levels. Further, at least 33 percent of that low-income community must reside more than one mile — or in rural areas 10 miles — from a supermarket.

The food desert concept has its

roots in the Healthy Food Financing Initiative (HFFI), a partnership between USDA, the Treasury Department, and the Department of Health and Human Services. The goal of that partnership is to develop and equip “grocery stores, small retailers, corner stores, and farmers’ markets with fresh and healthy food.”

A food desert map linked to the USDA homepage identifies the areas of the U.S. that are food deserts. According to that map, Macomb and parts of Bloomington, along with Pekin and parts of Peoria are in food deserts.

But Peoria Heights and Goofy Ridge are not. In fact, most of Illinois is not a

food desert, but parts of Chicago are.

Now that the food deserts have been identified and the HFFI partnership agencies are working together, the next step is for someone to produce the agricultural products — the fresh and healthy foods — to go into the grocery stores so that Macomb, and other places will no longer be considered food deserts.

I saw nothing about that key step on the USDA homepage. But I will keep looking.

William Bailey is director of Western Illinois University’s School of Agriculture. His email address is WC-Bailey@wiu.edu.

LETTERS TO THE EDITOR Take a hard look at county sales tax

Editor: There is something good happening in Illinois K-12 schools, and it deserves a good hard look from farm leaders and other civic-minded folks: the 1 percent county sales tax for capital needs for schools.

The law available to all Illinois counties is a major shift in funding school buildings from property taxes to sales taxes.

For those counties that have adopted the law, it is working in noteworthy ways.

It is reducing property taxes, and it is providing a solid revenue source to update, remodel, and/or build needed new buildings.

In Champaign County, this summer, 30 construction projects are in progress in K12 schools.

In the cases of Champaign and Urbana, very-long-needed new buildings are in the works, and much-needed repairs and updating are happening.

In my local district, most of the south half of the county, bonds that were being paid

for by property taxes are being funded by the 1 percent sales tax. Imagine!

Illinois has many K-12 buildings in the 50- to 100year age range. Funding new buildings through property taxes has not worked well.

Roofs, windows, heating systems, electrical and plumbing problems are the norm.

Efficiency? Energy conservation? Adequacy? All suffer.

Take a hard look at your county school buildings, and make a decision about what shape they are in.

In many more counties, the 1 percent county sales tax can help reduce and relieve property taxes, and at the same time provide a better source for updating, remodeling, or building new buildings for your students and teachers.

LIN WARFEL, Tolono

Advocates organic hog and dairy production

Editor: According to “Ag Legislative Roundtable immerses in dairy issues” (FarmWeek, June 20, 2011), the “most efficient” dairy would have 4,000 to 5,000 cows (Mr. George

Kasbergen) and the “optimum efficient” size of a dairy is 3,500 cows (Mr. Nic Anderson).

But I found no definition of efficiency for the “dairy industry.” Is it some unit of milk produced per some unit of labor? Or per some unit of fossil energy used? Or something else?

In the same article, performance is defined as the average milk production. Is that the average amount of milk produced per cow per day? Or per lactation? Or something else?

Mr. Anderson says that performance (average milk production) is a measure of the care given to the cows.

Could the average number of lactations per cow for a herd also be a measure of the care given to the cows? Or the average cost of antibiotics and veterinary services per cow per year? Or something else?

Finally, would many family small organic dairies be better overall than one dairy of thousands of cows?

In the same issue of FarmWeek, the article “Veterinarian: Ban on select

antibiotics could backfire” says that antibiotics are used to “prevent and control diseases to maintain the health of pigs.”

I think that this is in reference to the continuous use of antibiotics in the feed of swine in confined animal feeding operations (CAFOs).

But it is neither necessary nor ethical to add antibiotics to our daily diet to maintain our health!

The obvious conclusion is that the environment of CAFOs requires the extensive use of antibiotics, whereas the way humans raise their children does not.

Thus, the solution is to learn how to raise swine so that antibiotics are not needed to maintain their

health. One way is to raise them organically.

HERMAN BROCKMAN, Congerville

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When does crop change possession?

Editor: A farm owner does not receive a share of the crop until the crop yield is weighed over scales — usually at the local elevator where it is sold or stored.

The renter has to weigh the crop at the scales before dividing it. My contract states crop to be divided at elevator.

Bigger trucks and equipment tempt government’s greedy ways but as long as farmers pay their taxes, they have rights to roads.

MARTIN SHONK, Annapolis