FarmWeek June 13 2011

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SOME SOUTHERN Illinois wheat growers could fire up their combines early this season since the hot weather has hastened wheat maturity. ...4

FLOODING PERSISTS in Southern Illinois long after the rivers have begun to recede and the news media have departed. ...........5

SOME FARMERS may qualify for federal payments resulting from weather-related quality damage to 2009 crops. ......................................8

Monday, June 13, 2011

Two sections Volume 39, No. 24

Vilsack: Cuts should be ‘strategic,’ rurally conscious BY MARTIN ROSS FarmWeek

Ag Secretary Tom Vilsack recognized the need for budgetary belt-tightening last week, but warned Congress against choking off crucial rural development resources. Amid producer concerns about broad House-proposed cuts in fiscal 2012 ag spending, Vilsack helped unveil a new interagency White House Rural Council aimed at promoting ag market development and improved rural conservation, health care access, and education. He noted “the need to tighten the belt” in the face of a federal deficit, and said the council would explore “creative ways to use our resources” under fiscal constraints. “At the same time, we want to figure out ways in which we can expand investment and growth in the economy,” Vilsack told FarmWeek. “I think we have to be strategic about reductions. We don’t want to jeopardize our capacity to grow our way out of a deficit in addition to cutting our way out.” He stressed need for “a strong safety net in production agriculture,” and rejected suggestions that rural development is “pitted against agriculture” in terms of USDA support.

The House ag spending bill would impact both. It trims $338 million from USDA Rural Development programs vs. fiscal 2011 funding. USDA’s telemedicine, distance learning, and broadband programs — potential linchpins in Rural Council goals — also face major cuts under the plan. At the same time, the bill would cut into farm payments by reducing a current producer eligibility cap of $750,000 in annual on-farm adjusted gross income (AGI) and $500,000 in off-farm income to an annual $250,000 in total AGI. The Rural Council supports biofuels expansion and community-based renewable energy projects, while House proposals block fiscal 2012 Biomass Crop Assistance Program (BCAP) funding key to fostering new bioenergy sources. Two proposed Illinois biomass “project areas” have applied to the Farm Service Agency’s state office for BCAP support in establishing regional bioenergy production-supply chains. Those projects now will compete with others from across the U.S. for USDA approval and fiscal 2011 funds.

Vilsack noted ethanol’s reported role in shaving an average 89 cents from per-gallon gas prices. The biofuels sector is a “job creator,” offering potential for as many as a million new jobs “as we expand new ways to produce biofuels” from biomass feedstocks, he said. “We want to look for ways to expand, to encourage, to entice — and I know there are

conversations taking place in the halls of Congress about how to properly incentivize — this industry as it gets itself on its feet,” Vilsack said. “We also are taking a look at ways in which these additional (biofuels) feedstocks won’t necessarily compete with food or feed needs. That’s one of the reasons why we’re increasing our commitment to research.”

READYING TO PLANT

Gary and Jane Tretter of rural Gorham in Jackson County chat while loading soybeans into a planter as they prepare to plant a 150-acre field near Murphysboro. Good weather last week allowed them to move toward finishing their remaining 600 acres. They’ve had to do no replanting so far. The Tretters’ son, daughter, and daughter-in-law also are involved in the farm. (Photo by Ken Kashian)

South Korean ambassador: Time running out for FTA BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

Illinois Institute for Rural Affairs Program Manager Fred Iutzi warns the House spending plan would preclude any further BCAP signups in the near term. That would generate “a snowball effect in the marketplace and then in the policy arena, as far as (lawmakers) actually seeing the benefits that could happen with the program,” Iutzi told FarmWeek.

Han Duck-soo, South Korea’s ambassador to the United States, last week at the World Pork Expo in Des Moines delivered a short but pointed message to Congress: Time is running out. He challenged Congress to ratify a free trade agreement (FTA) between the two countries prior to the August recess or risk losing market share in South Korea. “The stakes for both countries are high, but time is running out,” Han repeatedly said to an Expo crowd that included U.S. Reps. Leonard Boswell (D-Iowa) and Tom Latham (R-Iowa). “If the Korean-U.S. agree-

ment isn’t ratified before the August recess, the chances to ratify it diminish greatly,” said Han. The ambassador noted a Han Duck-soo trade agreement between South Korea and the European Union (EU) will take effect in July. A deal already is in place with Chile. Meanwhile, South Korea, which has the world’s 15th largest economy, currently is negotiating trade agreements with Australia and Canada that Han predicted could be finalized by the end of this year. “We need to import food

FarmWeek on the web: FarmWeekNow.com

For more on the FTAs, see page 3 and farm products” to satisfy demands of a growing population, Han said. South Korea, a mountainous country about the size of Georgia, does not have enough arable land to feed its population of about 48 million people, he noted. The U.S. previously was South Korea’s largest trading partner until China surpassed it in 2004. Japan and the EU also have surpassed the U.S. in total trade with South Korea. Yet, the U.S. remains South

Korea’s top supplier of pork, and exports so far this year have increased due to an outbreak of foot and mouth disease that decimated South Korea’s swine herd. But the U.S. could be out of the market in the next decade if the FTA is not ratified, according to Nick Giordano, vice president and counsel of international affairs for the National Pork Producers Council (NPPC). “This is the most important trade agreement ever for the U.S. pork industry,” Giordano told FarmWeek. “It could generate an additional $687 million in exports annually.” See FTA, page 3

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


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