FarmWeek March 14 2011

T H E I L L I N O I S FA R M Bureau Market Study Tour g ot underway last week with visits to Utica and Convent, La. ...................2

ILLIOIS EFFORTS TO expand high-speed Internet continue with progress on federally funded Internet projects. ......................9

COUNTY FARM BUREAUS are holding various activities across the state this week to celebrate National Ag Week. .......................12

Monday, March 14, 2011

Two sections Volume 39, No. 11

Ag leaders focus on flurry of legislative issues

BY KAY SHIPMAN FarmWeek

Agriculture Legislative Day brought a flurry of agriculture issues that continued throughout the week.

With a 4-4 vote Thursday, the House Revenue and Finance Committee held in committee an amendment that proposed to end sales tax and income tax exemptions on Dec. 31, 2012.

IFB had called for member contacts with lawmakers to oppose House Amendment 1 to SB 4. An identical Amendment 2, sponsored by Majority

Leader Rep. Barbara Currie (DChicago), proposed to end agricultural sales tax exemptions for seed, feed, fertilizer, agricultural equipment, registered breeding horses, and semen for artificial insemination of livestock.

“We are pleased the House Revenue and Finance Committee members understood the severity of the impact House Amendments would have on farmers and the local rural economies and chose not to advance the sunset on sales tax exemptions for agricultural inputs,” said IFB President Philip Nelson.

“I want to thank each person who contacted their state

FarmWeekNow.com View our photo gallery of activities during Ag Legislative Day at FarmWeekNow.com.

representative and senator on this issue,” Nelson said. “It shows the importance of everyone’s involvement in contacting their legislators and sharing the importance of the sales tax incentives for us.”

He warned: “We need to be diligent in the coming weeks

DOT now viewing farmers who crop share as ‘for-hire’

Periodicals: Time Valued

Farmers who have crop share leases no longer qualify for an agricultural exemption from more stringent transportation rules under a new interpretation by U.S. Department of Transportation (DOT) officials, according to Mark Gebhards, Illinois Farm Bureau executive director of governmental affairs and commodities.

Last week in Washington, D.C., IFB President Philip Nel-

son and IFB staff discussed the issue with Marlise Streitmatter, DOT deputy chief of staff, and Anne Ferro, federal motor carrier safety administrator.

“We’re on top of the issue,” Nelson said. “We’re working through DOT and Secretary (Ray) LaHood’s office to try to address concerns ...

We think we had good dialogue in an hour-long meeting with them and tried to get the issues on the table.”

DOT interpreted federal transportation regulations to mean farmers who truck their landlords’ share of grain would be considered “for-hire carriers.” Farmers who cash rent farmland are not impacted.

Ferro acknowledged the new “for-hire” interpretation came from one of her employees who works closely with truck safety officials in Illinois. Recognizing the potential impact of the interpretation for Illinois farmers and for those in other states, Ferro pledged to begin gathering information and to report

back to IFB later this week.

Ferro also said the Unified Carrier Registration (UCR) program and the new entrant audit program have exposed some rule interpretation issues with agriculture that should be addressed long term by a working group representing farm organizations, regulators, and vehicle safety advocates.

Nelson told DOT officials that safety is a high priority for farmers, but suggested there’s a big difference between a “for-hire” carrier and a typical farmer who trucks his grain to market four months out of the year.

Under the new interpretation, farmers with crop-share leases would have to comply with regulations for “for-hire carriers” and need to obtain a commercial driver’s license (CDL) and follow alcohol and drug screening and testing rules.

IFB staff also discussed the matter with Illinois State Police and Illinois Department of Transportation officials.

The potential impact is substantial because about 37 percent of the state’s acres were farmed under crop-share leases in 2009, according to University of Illinois data. — Kay Shipman

FarmWeek on the web: FarmWeekNow.com

so this issue does not raise its head again. I encourage everyone when you see your state legislators to let them know what the benefit of the sales tax exemptions means for your personal operation and the economic value all those purchases have in your local area.”

The House took no action on SB 4, the bill connected with Amendments 1 and 2. SB 4 proposed to provide an income tax credit to the Continental General Tire manufacturing plant in Mt. Vernon.

IFB has no position on SB 4 as passed by the Senate.

During Agriculture Legislative Day at the state Capitol, Illinois Agriculture Director Tom Jennings encouraged ag leaders to remind lawmakers that the Illinois Department of Agriculture (IDOA) plays important roles in protecting

and educating consumers. “We (agriculture) are the biggest and best thing happening in Illinois right now,” Jennings said.

Comptroller Judy Baar Topinka wants input on policies and issues that are important to agriculture and rural communities so she soon will name a rural affairs and rural advisory group, Cory Jobe, her deputy chief of staff, reported to ag leaders.

In other legislative news: • The Senate Agriculture and Conservation Committee passed SB 2012, sponsored by Sen. Michael Frerichs (DChampaign), that would change how the Illinois Council on Food and Agriculture (CFAR) research is funded. IFB supports the legislation that follows recommendations See Leaders, page 8

Sean Kinsella, rural Normal, checks the levels of corn being loaded in a semi-trailer recently. This was the last of the corn that Kinsella and his father, Mike, had stored on their farm. Kinsella said the $7.05 per bushel price for corn supplied an added incentive to clean out their bin.

(Photo by Ken Kashian)

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

FarmWeek Page 2 Monday, March 14, 2011

TRANSPORTATION

Quick Takes HIGH PUMP PRICES MAY CUT ISP PATROLS — Drivers may see fewer Illinois State Police patrolling the roads if pump prices continue to climb, according to Illinois Statehouse News.

Last week State Police Interim Director Patrick Keen told a state House appropriations committee his proposed budget estimated gas prices at about $3.35 a gallon, lower than current prices which don’t show signs of dropping.

“If gas prices do continue to increase — if they get to around $4 a gallon — then we will have to ... think about what we’re going to do. But, possibly, we’ll have to go back to some of the things we did in 2008 when gas prices were high,” Keen told lawmakers.

Stationary patrols and requiring officers to car pool are possibilities, according to Keen. Another option would be to ask the General Assembly for more money. Keen said it depends on how much gas costs and how long prices remain high.

CREDIT DEFENSE — There is no need for the ethanol tax credit because federal law requires ethanol to be blended into gasoline, argued Sens. Tom Coburn (R-Okla.) and Ben Cardin (D-Md.).

The pair aim to eliminate the 45-cent-per-gallon ethanol blender’s tax credit, but ethanol producers say that would be unwise, as rising oil prices underscore the importance of homegrown fuels.

“If recharging our economy is a top fiscal and economic priority for these senators, then job one should be redirecting the $1 billion a day we spend on foreign oil back into the U.S. economy,” Renewable Fuels Association President and CEO Bob Dinneen said.

Meanwhile, Growth Energy President Tom Buis criticized Sen. Dianne Feinstein’s (D-Calif.) similar attacks on the credit. The ethanol industry produces the equivalent of a million barrels of oil a day, “and we are the second largest supplier of fuel to our nation,” Buis noted, arguing risking ethanol production “would be even more disruptive and more costly to our consumers and to our economy.”

DREDGING NEEDED — The Mississippi River system, with its 12,000 miles of inland waterways, helps more than 30 states compete in international export markets, to the tune of a potential $104 billion annually, Belleville Democrat U.S. Rep. Jerry Costello notes.

But dredging policies put in place by the Army Corps of Engineers (Corps) have led to commercial navigation restrictions on the Lower Mississippi, including draft restrictions and daylight movement only on certain stretches. That’s caused serious economic disruptions for many domestic industries that depend on the Mississippi River, Costello said.

As river levels change over the next few months, draft restrictions will likely have to be reimposed because the river is not being sufficiently dredged by the Corps.

Without a dependable deep-draft channel, many goods will be placed at an immediate competitive disadvantage in export markets, Costello warned. He thus encouraged Illinoisans to write the president in support of dredging operations.

(ISSN0197-6680) Vol. 39 No. 11

March 14, 2011

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Market study tour participants begin infrastructure odyssey

BY JULIE ROOT

Have you ever wondered where grain goes once it leaves the FarmWeekNow.com farm? It might just make its way Listen to audio reports about down to Zen-Noh Grain Corpo- the tour from RFD Radio’s Julie ration in Louisiana.

Root at FarmWeekNow.com.

Participants in Illinois Farm Bureau’s Market Study Tour visited Zen-Noh’s Convent, La. facility last week as they prepared for the Panama-Colombia leg of the 2011 tour.

Producers from across the state — with guests from the Illinois Soybean Association — viewed the facility’s hightech control area, barge-loading operations, and storage area.

John Williams, an Illinois native and president and CEO of Zen-Noh, said his company’s facility has a total storage capacity of more than 4 million bushels and can load vessels at a rate of 120,000 bushels per hour. The Convent site also loads railcars and trucks.

Facilities such as Convent are expected to play a greater role in moving Midwest commodities to Asia following upgrades to the Panama Canal set for completion in 2014.

Meanwhile, IFB projects exponential export growth with congressional passage of South Korea, Colombia, and Panama free trade agreements (FTAs).

The administration’s focus has been on Korea, but Senate Finance Chairman Max Baucus (D-Mont.) and ranking Republican Orrin Hatch (R-Utah) last week warned U.S. Trade Representative Ron Kirk there would be no passage of the Korea FTA unless it’s closely paired with the still-languishing Colombia and Panama deals.

“It’s clear to me that none of these trade agreements are going to pass unless they’re all packaged,” Baucus said.

The Market Study Tour left Bloomington last Tuesday on its initial Chicago leg, by way of Utica and Oak Brook. Participants visited the Consolidated Grain and Barge terminal at Utica and met with the staff of Evergreen Shipping Agency in Oak Brook.

The group then toured New Orleans port facilities before heading to Panama. The study tour concludes this week — details of the Latin American leg will appear in next week’s FarmWeek.

Julie Root is Illinois Farm Bureau’s radio news manager. Her e-mail address is jroot@ilfb.org.

U.S. customers rely on efficient transport system

BY CHRIS MAGNUSON Participants of the Illinois Farm Bureau Market Study Tour (MST) last week witnessed first hand the importance of an efficient transportation system to move U.S. ag products around the world.

MST participants last week visited Japanese-owned ZenNoh Grain Corp. in Convent, La. and Consolidated Grain and Barge in Utica.

Both facilities load and ship U.S. feed grains and oilseeds to key destinations, particularly Asia, around the world.

“It is important to have good control of the origination of grain,” said John Williams, an Illinois native who is the CEO and President of Zen-Noh. “Japan has a two week supply.

They have huge problems if they don’t receive a consistent flow of two vessels a week to feed their livestock industry.”

Japan reportedly receives as much as 95 percent of its corn imports from the U.S. About three-quarters of the corn is used for animal feed.

“They have very little storage,” Jay Hageman, a Vermilion County farmer, said of Zen-Noh. “They rely on us to store a good quality product until they need it.”

On good days the Zen-Noh facility reportedly unloads as much as 3.6 million bushels of corn or 3.9 million bushels of soybeans from barges, railcars, and trucks.

The efficient shipment of farm products is particularly important to Illinois farmers.

Illinois ranks second nationally in the export of ag commodities with nearly $4 billion worth of goods shipped to other countries each year. More than 44 percent of the grain produced in Illinois is exported.

STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager

Richard Verdery (rverdery@ilfb.org) Classified sales coordinator

Nan Fannin (nfannin@ilfb.org) Director of News and Communications

Dennis Vercler Advertising Sales Representatives

Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

Corn is loaded at Zen-Noh Grain Corp. in Convent, La. (Photo by Chris Magnuson)

FarmWeek Page 4 Monday, March 14, 2011

GOVERNMENT

Guest worker reform tradeoff for E-verification?

BY MARTIN ROSS FarmWeek

If ag employers must jump through new electronic hoops, lawmakers should help ensure the hoop-jumping pays off in terms of a reliable seasonal workforce, Farm Bureau argues.

The U.S. House Judiciary Committee is expected to introduce “E-Verify” legislation that would set the stage for mandatory electronic worker verification. A Judiciary panel recently weighed the pros and cons of E-Verify as an enforcement tool and domestic job security measure.

While the Internet Social Security verification system reportedly has made significant progress in recent years, questions remain regarding its accuracy and effectiveness and the burden it could place on farmers who hire seasonal labor.

American Farm Bureau

Federation (AFBF) opposes mandatory verification. AFBF policy specialist Paul Schlegel has asked Judiciary members to consider tying verification requirements to H2A ag guest worker visa reforms that would help assure a reliable, cost-effective flow of temporary workers.

“If they mandated this, number one, it’s unworkable, and, number two, we don’t know where we’re going to get our labor,” he told FarmWeek. “At least if we fix H2A, it would give some people some opportunity to get a legal workforce. They have not said no to that.”

E-Verify’s cost is not the issue for producers — it’s a free program. But Schlegel argues “this is not the way farms work.” Most operations don’t have a human relations department, relying on a crew leader to recruit “a whole bunch of people in a short amount of time.”

Producers who receive a tentative non-confirmation notice must ask the suspect worker to resolve the problem within a specified deadline. In the interim, they cannot fire

guess. Much of the current visa debate focuses on the H1B program, which meets “the sexy, high-tech” employment needs of companies such as Microsoft or Intel and

‘At least if we fix H2A, it would give some people some opportunity to get a legal workforce. They have not said no to that.’

— Paul Schlegel American Farm Bureau Federation

the worker or investigate documentation on their own, and if harvest is completed and a worker moves on, the producer could face federal sanction for an illegal hiring.

Many rural employers lack broadband resources needed to effectively use E-Verify, Schlegel added.

Where congressional H2A debate will fall is anyone’s

doesn’t spark some of the emotions associated with seasonal field labor, Schlegel said.

The H2B visa program provides low-skilled non-ag workers for amusement parks, golf courses, and other employers. The H2B program is limited to 66,000 visas per year, while H2A is the only visa category with no such cap.

But under current law, guest worker programs cannot adversely affect “similarly occupied U.S. workers,” even if they are not locally available. Schlegel noted a large Washington State orchardist who must advertise for U.S. workers from as far away as Texas before seeking H2A workers.

The United Farm Workers and other U.S. unions “hate guest worker programs,” but tolerate H2A because “it’s so tied up in regulations and expense nobody uses it,” he said.

“Our problem is, if we get it to the point where it includes an economic wage, it’s not administratively burdensome, and it works for people, they’re afraid they’re going to wake up one day and we suddenly have a half-million ag workers with H2A visas the United Farm Workers can’t organize as a union,” Schlegel warned.

House OKs grants, incentives

Global, domestic veterinary needs are growing In an environment where consumer trends and public risks demand skilled livestock veterinarians but profits favor poodles and Persians, a University of Illinois specialist hails efforts to entice students into ag or public practice.

Last week, the U.S. House approved measures to create a new grant program to expand overall capacity in veterinary medical schools and increase the number of loan repayments for veterinarians working in public health practice. Farm Bureau supports the bill, now headed for Senate passage.

American Farm Bureau Federation President Bob Stallman argued the U.S.’s current 2,500 vet graduates a year cannot meet demand in areas including food safety, bioterrorism-emergency preparedness, environmental health, regulatory medicine, diagnostic medicine, and biomedical research.

U of I College of Veterinary Medicine Prof. Dennis French argues “there’s clearly a need for large animal agriculture training.” Changing consumer tastes underline the need for skilled veterinary professionals and researchers to ensure “preservation of safe and wholesome foods,” he said.

Demand for local, natural, organic, and other niche foods increasingly produced

outside conventional production and animal health systems raises concern about potential disease prevention and treatment, French suggested.

Informed veterinary guidance is crucial in ensuring alternative practices don’t endanger animal health or meat safety.

At the same time, Korea’s current foot-and-mouth epidemic re-emphasizes the health and economic threats posed by multispecies/globally transmitted diseases. French noted only about two dozen swine practitioners nationwide are certified as veterinary “diplomates” equipped to consult on international livestock issues.

“Those guys are forever on airplanes to China, the (United Kingdom), and South America because of the demand for their services,” he told FarmWeek.

“Certainly, we have to do a good job locally to supply the (veterinary) need. But if we look to the future, it’s clearly a global economy that we’re trying to address.”

Illinois budget woes have contributed to a reduction from 19 faculty members in the vet college’s rural health management section to a current 5 1/2. Remaining faculty have had to “farm out” many senior veterinary students to “externships” at practices across the U.S., French said.

Movement toward “companion” animal practice — even among farm kids — also has affected livestock veterinary innovation and communications, he added.

Researchers with “interesting cases” have fewer outlets available or willing to publish

valuable large animal studies, French said.

Vet students are being driven to “more economically advantageous” companion animal practice largely because of the “debt load” associated with their education, he said.

“Until we can provide them a salary commensurate with their interest levels and needs, (the House legislation) may be one way to lessen their debt load a bit,” French said.

“Then, maybe they can go back to these rural communities.” — Martin Ross

AG DAY BASKET ASSEMBLY

Representatives of more than 700 FFA members from around the state assemble baskets of Illinois products for state legislators last week in Springfield. Illinois ag organizations and businesses contributed a variety of products to remind lawmakers of the state’s No. 1 industry on Agriculture Legislative Day. (Photo by Cyndi Cook)

Page 5 Monday, March 14, 2011 FarmWeek

FEEDING THE PLANET

Growing demand plus for ag, concern in developing world

BY DANIEL GRANT FarmWeek

The future for agriculture is bright due to growing demand for food, according to analysts at the WILL Ag Outlook Meeting in Covington, Ind. last week.

The analysts generally predicted commodity prices will remain high this year as farmers around the world attempt to rebuild feed and grain supplies.

“Corn and feed grains are tight around the world,” said Roy Huckabay, principle of the Linn Group, a privately held firm in Chicago that provides commodity market information, analysis, and risk management. “This is not a situation we can grow out of in one year.”

The situation is expected to keep pressure on crop and livestock prices.

It also is expected to result in the largest food price increase since 2008.

The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri last week projected U.S. food prices this year could rise by an average of 4.2 percent after rising by less than 2 percent last year.

“U.S. stocks of corn, soybeans, and cotton are very low relative to use in 2010-11,” said Pat Westhoff, director of

FAPRI. “Tight supplies have contributed to higher prices.”

However, demand has not slowed much due to higher prices and it actually has increased for some ag products in some areas, according to Jacquie Vocks, analyst with Stewart Peterson

‘This is not a situation we can grow out of in one year.’

— Roy Huckabay Linn Group

Group in Champaign.

U.S. meat exports are booming, ethanol production could set a record, and soybean exports are expected to remain near record levels this year.

“Until rationing begins, I don’t think (the new-crop/oldcrop corn spread) means much,” Vocks said.

Dan Zwicker, analyst with ADM Investor Group in Decatur, believes the corn market currently needs about another 300 million bushels. It will find those bushels either through an early harvest or by rationing demand.

“This is this generation’s version of the 1970s,” Zwicker said. “It (the market) is sending

the signal we need increased food production.”

Tight food supplies may lead to higher prices in the U.S. But the real concern is in developing countries, particularly in sub-Saharan Africa and South Asia, according to the United Nations.

“North Africa always subsidized food prices. When (the government) took those away, food prices went up. Then, when commodity prices rallied, food prices went up even more,” Huckabay said.

“When 40 percent or more of your income is on food (in developing countries) and the price goes up 15 percent, you’ve got a problem,” he continued. “You no longer can afford to eat every day.”

U.S. consumers, by comparison, spend about 10 to 15 percent of their income on food.

Tom Fritz, founding member of the EFG Group in Chicago — a commodity futures trading service — predicted the situation could intensify this year.

“We’re looking at an explosion of food demand,” Fritz said. “And it’s only going to get bigger.

“Everybody is looking at what’s happening in the Middle East,” he added. “It (political unrest) didn’t start with oil, it started with food costs.”

Coming up short?

What the world needs now ...

BY MARTIN ROSS FarmWeek

A global food/environmental analyst argues a 100 million-ton global grain harvest increase is necessary merely “to maintain the relatively precarious status quo” for a growing, hungry world.

It also appears unlikely, according to Lester Brown, president of the Earth Policy Institute.

Last year, combined world production of corn, wheat, and rice fell roughly 60 million tons short of worldwide consumption, Brown reported. A drawdown in available stocks covered that shortfall, and with an added projected 40 million-ton growth in demand, he sees a 100 million-ton, 5 percent production boost as necessary in 2011.

A 150 million-ton increase would help restore “normalcy” to the global market.

With irrigation offsetting global rainfall variations, Brown projects a 10 million-ton bump-up in the rice harvest this year.

Most of the world’s wheat crop is fallplanted winter wheat grown in the Northern Hemisphere, which is beginning to green in many locations. China is the largest producer: Recent rains and snowfall could aid recovery from the country’s worst drought in decades, but Brown anticipates 110 million tons being harvested in 2011, vs. 115 million tons last year.

India’s potential is brighter: He predicts a million-ton increase to a total 82 million tons.

India will provide “the first look at the new harvest” next month, Brown said.

USDA expects the U.S. harvest to drop from 60 million tons in 2010 to 56 million tons this season, largely as a result of widespread drought.

Russia’s crop is much better than last year’s “severely depressed” crop, but it is “not exceptional.” Part of the country’s higher-yielding winter wheat was not planted, though expected spring wheat plantings could generate a net 18 million-ton increase for 2011.

Brown calculates 20 million tons of added wheat worldwide for 2011.

That leaves a potential 70 million-ton gap for corn to fill. China is unlikely to boost corn production this year, Brown said, but the U.S. could be good for 25 million added tons and the remaining 40 percent of the world’s producing nations could contribute another 15 million.

Minor cereal grains may supply another 10 million tons. That comes to only 80 million total additional tons, and Brown anticipates a hike in the World Food Price Index in coming months.

“The lower-income countries are going to be affected most by the higher prices,” he said.

“They consume commodities much more directly (than the U.S.). When commodity prices double, the price of their food rises dramatically.”

Michael Cordonnier, right, agronomist and analyst with Soybean and Corn Advisor of Hinsdale, discusses Brazilian soybean production potential with participants of the USDA Ag Outlook Forum last month in Arlington, Va. Cordonnier predicted quality yields and high prices will encourage Brazilian farmers in the coming year to plant more soy acres. (Photo by Daniel Grant).

Bean production projected to set new record in Brazil Soybean harvest in Brazil may be off to a slow start due to rainy weather.

But, when the last beans eventually are picked this season, Brazilian farmers are expected to set a new soy production record.

USDA last week increased its bean production forecast for Brazil by 1.5 million tons (55.5 million bushels) to a record total of 70 million tons (2.59 billion bushels).

“Timely rains in the southern producing areas raised yield prospects,” USDA noted of soy production in Brazil.

And the trend of increased soy production in South America could continue as quality yields and strong soybean prices this year are expected to encourage future plantings.

“The soy area in Brazil is up 2.6 percent (compared to a year ago),” said Michael Cordonnier, agronomist with Soybean and Corn Advisor in Hinsdale, who travels extensively to South America. “At these prices I expect it could go up another 3 percent” in the near future.

It takes higher futures prices to encourage more soybean plantings in South America compared to the U.S. due to higher transportation costs and the exchange rate.

“Brazilian farmers see a much lower price than American farmers because of the exchange rate,” Cordonnier said.

The situation hasn’t slowed the expansion of soy production in some parts of South America. Brazilian farmers can grow 60plus bushel soybeans in fields where Asian soybean rust is controlled, according to Cordonnier.

A recent report put together by a network of ag economists noted from 2000 to 2008 Brazil increased its soy production area by 8 million acres (6 percent) while the soy production area in Argentina grew by 10 million acres (15 percent).

Cordonnier refuted reports claiming the soybean production area has grown in Brazil at the expense of the Amazon rain forest.

“The Brazilian government is working hard to limit deforestation.

They want to use degraded pasture for soy expansion,” he said.

But more land is being transitioned to production as demand continues to grow for ag products.

“They’re not burning the Amazon to grow soybeans,” Cordonnier said. “They’re clearing the Amazon for cattle.”

Overall, Cordonnier predicted South American soy production this year could total close to 126 million tons (4.6 billion bushels), which would be down about 5 million tons from last year due in part to drought losses in Argentina. — Daniel Grant

Page 3 Monday, March 14, 2011 FarmWeek

G0VERNMENT

Greenhouse regs threaten domestic energy suppliers

BY MARTIN ROSS FarmWeek

Producers and consumers already facing the costs of a global oil price spike would feel even greater economic pain under U.S. Environmental Protection Agency (EPA) greenhouse gas (GHG) regulations, energy industry observers warn.

EPA emissions regulations and permitting would place U.S. oil refineries at a major disadvantage to foreign gasoline suppliers, according to National Petrochemical and Refiners Association (NPRA) President Charles Drevna.

Under new regulations, Drevna warned, “there is no guarantee that the U.S. domestic refining manufacturing base will continue to be in existence two or three decades from now.”

The American Farm Bu-

reau Federation (AFBF) backs House and Senate bills aimed at preempting EPA stationary source (non-tailpipe) GHG regulation. The Energy Tax

“one of the last internationally competitive segments of the American manufacturing base,” Drevna wrote EPA assistant administrator for air

‘ People

have to realize that energy affects everything we buy — all the services, all the goods we buy .’

— John Urbanchuk Energy industry analyst

Prevention Act is spearheaded

by House Energy and Commerce Committee Chairman Fred Upton (R-Mich.), while Sen. Jim Inhofe (R-Okla.) is sponsoring a Senate companion piece.

U.S. refineries constitute

Illinois congressmen challenge EPA overreach Increasingly stringent U.S. Environmental Protection Agency’s (EPA) actions “undermine our ability to continue to feed the world’s growing population,” Central Illinois U.S. Rep. Aaron Schock argued following U.S. House Ag Committee questioning of EPA Administrator Lisa Jackson last week.

Jackson told the panel EPA has worked to establish a dialogue with the ag community. She proposed to reduce greenhouse gas emissions in a “responsible, careful manner,” noting current exemption of ag sources from the rules.

EPA plans to release a memo to regional EPA offices clarifying that nitrogen and phosphorus pollution reduction is best addressed by the states, via proven conservation practices and other tools, she testified (see page 7). Jackson argued EPA does not support a “no-spray” drift policy, and reported EPA is on the verge of finalizing a milk container exemption from oil spill prevention rules.

However, while she said “we have no plans” to expand farm dust regulation, Jackson stressed the federal Clean Air Act “mandates that the agency routinely review the science of various pollutants, including particulate matter (dust).”

Urbana Republican ag committee member Tim Johnson noted Jackson early in her tenure proposed to cancel her predecessor’s proposed dairy spill exemption. He cited previous agency guidelines urging “zero tolerance” spray drift policies and regulation of coarse particulate matter from “routine agricultural dust.”

EPA greenhouse rules amount to “a quasi cap-and-trade act,” bypassing Congress, he said. “Your agency has, time after time after time, intruded on the legislative authority,” Johnson told Jackson.

Schock, a Peoria Republican who has proposed blocking funding for extended EPA review of atrazine, argued “the uncertainty and burdensome overreach” related to EPA “is making it very difficult for our farmers to do their job.”

“Proven farming techniques that are commonly used are now in jeopardy because of the hijacking of the EPA,” he told FarmWeek. “(That) will not only have a horrific economic impact, but their decisions impact every farmer in Illinois.

“Many of their actions are tantamount to a bureaucratic assault on the ag community. For example, removing a product such as atrazine from the shelves would have an economic impact exceeding $2 billion annually, which would be a severe blow to an already struggling economy.

“We all agree that it’s in everyone’s interest, including farmers, to have a safe product. Which is why the EPA has evaluated the pesticide numerous times in the past and time and time again has declared it safe for use.” — Martin Ross

and radiation Gina McCarthy.

NPRA estimates U.S. refineries process 95 percent of the gasoline, diesel, jet fuel, heating oil, and lubricants used in the U.S. Regulatory concerns arise at a time when, according to energy consultant John Urbanchuk, the U.S. is particularly vulnerable to “our exposure to imported oil.”

“People have to realize that energy affects everything we buy — all the services, all the goods we buy,” Urbanchuk told FarmWeek. “People don’t realize that the impact of energy on food prices is greater than any one individual raw material. It has an implication for everything — processing, transportation, packaging.”

The petroleum industry is not the only energy sector concerned about GHG regulations: Prospective EPA rules were a key concern at a recent National Ethanol Conference.

Steve Schleicher, vice president for industrial services with the biofuels industry firm Pinnacle Engineering, warned potential GHG permitting “encompasses a lot of plants.”

Last week, Upton said “you could see gas prices jump another 30 cents or so” under GHG regs. “That’s not something that we need as we try to move into a recovery,” he argued.

AFBF regulatory specialist Rick Krause noted strong House Republican support for halting stationary source regulation, but told FarmWeek a number of Democrats “probably would support” reining in EPA, as well.

At the same time, EPA is extending the March 31 reporting deadline for 2010 greenhouse emissions from large emitters and fuel suppliers — an initial stage in setting down new regulations.

The agency reportedly needs time to develop a tool that would be used to facilitate online reporting. EPA expects to complete that work this summer.

Shannon Broome, executive director with the multiindustry coalition Air Permitting Forum, is guarded in her optimism Congress would be able to totally put the brakes on the EPA. “We need to operate as if we have to deal with these rules,” she told ethanol producers.

Ag Committee votes to head off permits Illinois may prove a key player in helping rein in potentially costly new federal pesticide regulations.

Last week, the House Ag Committee unanimously approved the Reducing Regulatory Burdens Act, which aims to relieve producers of purportedly duplicative and unnecessary U.S. Environmental Protection Agency (EPA) pesticide use permits.

The measure would amend the Federal Insecticide, Fungicide, Rodenticide Act (FIFRA) and the Clean Water Act (CWA) to eliminate a required National Pollutant Discharge Elimination System (NPDES) permit for pesticides already approved and labeled for use under FIFRA. Under a 2009 ruling in the federal court case National Rep. Tim Johnson Cotton Council v. EPA, pesticide applicators would have to obtain a permit under the CWA by April 9 or face fines of up to $37,500 per day per violation.

Ag Committee member Tim Johnson, an Urbana Republican and key co-sponsor of the bipartisan bill, argued “Congress never intended to burden farmers with additional permit requirements” beyond FIFRA. American Farm Bureau Federation regulatory specialist Don Parrish deemed the committee vote “huge,” but stressed “we have to have a huge showing” of bipartisan support this week in the House Transportation and Infrastructure Committee, which has primary jurisdiction over water issues.

“We think we have the momentum; we think we can get it done,” Parrish told

FarmWeek. “But it’s going to take a lot of people working and members hearing back home that this has to move in the House. It becomes harder in the Senate, but if we show some really good momentum in the House, we’re going to make it in the Senate, too.

“Basically, (this bill) is putting things back to the way they’ve operated for almost 40 years. You’re eliminating (federal) administrative burden; you’re saying you don’t need duplicative government oversight in the use of pesticides.”

Parrish noted state regulatory agencies have helped clarify pesticide/permit issues facing Congress and EPA, highlighting efforts by Illinois Environmental Protection Agency Water Pollution ConRep. Jerry trol Bureau chief Marcia WilCostello hite.

He emphasized the importance of support not only from lawmakers who sit on both Ag and Transportation and Infrastructure committees but also by Transportation and Infrastructure members such as Belleville Democrat Rep. Jerry Costello, a co-sponsor of the Reducing Regulatory Burdens Act. But Parrish believes support for the measure is “broader than agriculture.” Initial pesticides targeted for permitting include chemicals used by communities to control mosquitoes and other public health threats.

“If those guys are afraid to use pesticides to protect human health and safety, that’s going to have a ripple effect throughout the economy,” Parrish said. — Martin Ross

FarmWeek Page 6 Monday, March 14, 2011

PRODUCTION

USDA tightens crop price estimates Producers advised to protect an issue in some wheat growing areas of the U.S. “But there still is potential for weather USDA last week in its crop supply-demand issues in the wheat market.” report made few changes to the balance sheet Both analysts said last week’s report was for soybeans and feed grains. “neutral” and that crop prices generally are It did, however, lower the marketing year expected to remain higher than average. average farm price estimates by a dime for corn The focus now is on the prospective plantings and soybeans. and stocks reports at the end of this month The current marketing along with planting year farm price estimates weather. are $5.15 to $5.65 per “The longer-term bushel for corn and trend of higher con‘ There is plenty of wheat sumption will be a favor$11.20 to $12.10 per a r o u n d t h e w o r l d r i g h t able factor (for commodbushel for beans. The average wheat price estinow. But there still is po- ity prices),” Roggensack mate was left unchanged “We need a huge tential for weather issues said. from a month ago at increase in (corn) acres $5.60 to $5.80 per bushel. in the wheat market. ’ and high yields or we’ll “It’s hard not to be be in another tight situavery bullish,” said Scott tion in the coming year.”

— Terry Roggensack Shellady, market analyst Shellady said the three The Hightower Report with XFA Futures, during biggest worries for a teleconference hosted by traders is political unrest the CME Group. “But we around the world, rising still could see all three markets come off a bit.” oil prices that last week reached a 29-month USDA last week lowered U.S. wheat exports high, and weather for the planting season. by 25 million bushels, which subsequently Accuweather.com’s long-range forecast last boosted ending stocks by the same amount. week projected the active weather pattern will Elsewhere, USDA increased global wheat sup- continue through at least early April. Some of plies by 1.9 million tons (about 70 million bushels) the storms could be followed by more shots of due to higher production around the world. cold air in the Midwest.

“There is plenty of wheat around the world Meanwhile, drought conditions in west right now,” said Terry Roggensack, of the Texas and the interior Southwest were projectHightower Report, who noted dryness remains ed to worsen this spring.

BY DANIEL GRANT FarmWeek

against downside risk

Farmers undoubtedly are excited about the run-up in commodity prices since last fall.

But they shouldn’t allow the euphoria of corn and wheat futures near or above $7, $13-plus beans, and cattle prices above $100 be a distraction from much-needed marketing plans.

In fact, farm marketing plans may be more important than ever before as the amount of risk in farming has risen along with crop and energy prices, according to analysts last week at the WILL Ag Outlook Meeting in Covington, Ind. “At these price levels, our risk is to the downside,” said Curt FarmWeekNow.com Kimmel, analyst with Bates For additional information from Commodities in Bloomington. the WILL Ag Outlook meeting, go to FarmWeekNow.com.

“You need to protect the downside and put a floor under you.”

Analysts at the meeting advised farmers to protect at least 80 percent of their crops with federal crop insurance, use options for protection and flexibility, and sell remaining old crops at profitable levels offered recently by the market.

Farmers also were advised to develop marketing plans, if they don’t have one already, and stick to those plans.

“When I first got in this business (about 30 years ago) a producer’s job was about 70 percent growing the crop and 30 percent marketing,” said Tom Fritz, founding member of EFG Group in Chicago, a commodity futures trading service. “Now, about 30 percent (of a farmer’s job) is growing the crop and 70 percent is marketing.”

Volatility, driven by everything from production swings and energy prices to record-high outside investments in commodities, has increased in the markets in recent years and likely will continue, according to Roy Huckabay, of Linn Group in Chicago.

“The range in corn price (swings in recent years) has been $4,” Huckabay said. “The range in corn in 2003 was about 40 cents.

That’s the type of volatility we’re dealing with now.”

Oil prices last week surged to a 29-month high of $105 per barrel.

Higher oil/energy prices could support increased ethanol production but the energy situation also is a negative to ag as a key contributor to projected record-high production costs this year. Meanwhile, various funds have invested about $650 billion in commodities but some of that reportedly has been moving into the energy markets.

“The funds do make the market more volatile as they move much larger volumes,” said Wayne Nelson, analyst with L and M Commodities in New Market, Ind. “And we’ve seen some (funds) aligning with the situation abroad. If we have more unrest in the Middle East, it will have a greater tendency to inflate energies rather than grains.”

So what should farmers do to protect themselves from all the volatility? They should know their costs, protect price ranges of their commodities, figure out what price levels are profitable on their farms, and stick to their marketing plans.

“Demand for your crops will continue to go up and up. That’s why marketing is so important,” Fritz said told farmers. “There’s an old expression (in grain trading) that you should ‘plan the trade and trade the plan.” — Daniel Grant

AG DAY DIRECTIONS

Jim Craft, left, Illinois FFA executive secretary, gives directions to FFA members who helped with Agriculture Legislative Day activities last week in Springfield. Looking on are Illinois State FFA officers, left to right, Vice President Jake Ekstrand, Secretary Cody Gill, and Treasurer Jeffrey Barnes. (Photo by Cyndi Cook)

Page 7 Monday, March 14, 2011 FarmWeek

CONSERVATION

‘Principles,’ direction of conservation policy debated

BY MARTIN ROSS FarmWeek

Participants in a Rock Island forum echoed Senate Ag Chairman Debbie Stabenow’s (D-Mich.) recent call to emphasize “principles, not programs,” in designing — and funding — conservation provisions for the next farm bill.

At a USDA Natural Resources Conservation Service (NRCS) forum co-sponsored by the Farm Forum and American Farmland Trust, both producers and environmental interests stressed the need to focus more on watershed-based stewardship initiatives with identifiable and measurable outcomes.

Rather than mulling specific initiatives such as the Conservation Reserve Program, participants addressed broad areas: water security, climate, and landscape integrity issues ranging from wildlife habitat to ag-urban interaction.

They varied largely over the degree to which the carrot or the stick should be employed in ensuring ag stewardship.

With federal funds tightening, the Environmental Working Group (EWG) has heightened efforts to direct added resources toward the farm bill conservation title. EWG’s Craig Cox sees “an epidemic of gully erosion across the Corn Belt” he attributes it largely to a higher frequency of severe storms and “the pressure to go all out” in boosting production.

Cox noted “very traditional conservation practices” — from reduced tillage to grassed waterways — can greatly reduce gully erosion, especially in tandem. But where Illinois Farm Bureau supports fundamentally incentive-based conservation, he said incentives may not be enough given “the pressure we’re putting on our agricultural land” amid high crop prices, biofuels demand, and increased farmland leasing.

“Especially given the chronically underfunded nature of voluntary programs, I think the expectation that we can solve these problems primarily with voluntary programs is just not going to get us there,” Cox told FarmWeek.

“The question we have to

‘The market doesn’t pay me to get less production.’

— David Miller Iowa Farm Bureau

ask is, ‘what’s the division of labor between the landowner, the farmer, and the taxpayer?’

There are some things we think farmers need to do basically as a responsibility that comes with their property rights, and other things taxpayers ought to be

Adaptation, not mitigation, ideal farm climate approach While he acknowledges likely climatic changes facing producers in decades ahead, Iowa Farm Bureau economist David Miller questions how putting the heat on agriculture will address slippery global concerns.

As lawmakers eye new farm bill conservation goals, Miller argues climate adaptation, not greenhouse emissions “mitigation,” is the proper focus of federal efforts.

Miller, whose group has played a leading role in carbon market development, calls the House’s 2009 push for carbon cap-and-trade mandates “probably one of the biggest political blunders ever made in climate policy in this country.”

In the wake of that debacle, “I suspect it will be a decade before we have climate policy,” he said.

Meanwhile, voluntary environmental markets “have allowed us to learn an awful lot,” including doubts about the potential “buy side” of carbon trading, Miller said.

“The political uncertainties out there killed a fledgling market,” he charged. “You cannot sustain environmental markets through the sell side alone.”

Miller accepts climate change but “in reality, climate is always changing,” and he said any approach to regulating change must be reasoned

and effective. Key is whether the focus is on strict emissions (a la cap-and-trade) or on resource management.

U.S. corn nitrogen use has held steady over the past 25 years, but Miller stressed “we’re getting a whole lot more bushels out of it.” With the world “screaming for more calories, more protein,” Miller fears U.S. regulations that limit farm practices or nutrient or fuel use could push production to less-efficient nations like China.

China on average uses 20 more pounds of nitrogen per acre than the U.S., with yield response but “no greater (nitrogen) efficiency.” Given China’s reliance on coal power and thus heavier greenhouse emissions, he questioned whether U.S. emissions caps would affect global climate change.

“The world’s not better off if that’s what we do,” Miller warned. “A lot of what we do in adaptation has mitigation positives. The fact that we’re much more efficient in nitrogen utilization is part of an adaptation technique, because it helps profitability when I’m spending $600 a ton for anhydrous. It’s also part of my mitigation strategy.

“I get mitigation out of fuel efficiency, adoption of no-till. The adoption of almost every practice that’s

good for adaptation will have a mitigation benefit to it. The reverse is not necessarily true: I can mitigate by just producing less, but that’s not good adaptation.” — Martin Ross

willing to pay for.”

Cox nonetheless is wary of blanket regulatory approaches such as regional nutrient management requirements, arguing “a much more targeted approach” to addressing a few particularly damaging farm practices would yield greater results.

“The one size-fits-all stuff ’s not going to do it anymore,” Iowa producer and forum speaker Robert Ballou said.

Ballou touted the value of “organized initiatives” between producers and “an integrated portfolio of solutions” across the rural resource base. North Dakota State University agribusiness specialist David Saxowsky believes the farm bill can best serve future water security needs by providing the flexibility for states to tailor watershed protections.

Amid increasingly competitive demand for water resources, the lawyer and economist argued “state laws really drive water law, not federal law.” For example, irrigation is one of the major water uses in the Western states, and he said state agencies may be in a better position to coordinate irrigation and conservation practices.

Saxowsky deems evolving technology crucial to helping farmers use water more efficiently, and urges greater farm bill research funding and technical support. “Then the law

needs to urge people to adopt those technologies,” he said.

Ballou meanwhile challenged the notion that “the best management practices are known,” and maintained greater conservation data collection is necessary to help producers “gain confidence in their strategies.”

At the same time, Farm Foundation Vice President Sheldon Jones stressed the need for the farm bill to aid farm “adaptability to climate change.” With anticipation of longer frost-free seasons with fewer suitable growing degree days and precipitation extremes in the Midwest, Iowa Farm Bureau Federation’s David Miller sees the need for “subtle shifts in management,” especially in river bottom areas.

But as policymakers mull new farm bill conservation priorities, Jones notes even some effective existing programs operate outside the established ag budget “baseline” and thus may be “at-risk” in 2012.

And Miller punctuated the dual focus of ag conservation programs in preserving the environment and economic farm productivity. Advanced practices and increased land retirement at some point “come out of profits,” he said.

“The market doesn’t pay me to get less production,” Miller told forum participants.

FarmWeek Page 8 Monday, March 14, 2011

ACES

U of I partner in $9.6 million grant for India food security project The University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) along with other university and private sector partners has received a $9.6 million grant from the U.S. Agency for International Development (USAID) to address food security in India.

The five-year project will involve the U of I ACES, Cornell University, the University of Georgia, Ohio State University, Tuskegee University, the University of California-Davis, John Deere, Tata Chemicals Ltd., and Sathguru Management Consultants.

The group will work with Banaras Hindu University to increase agricultural production and food security in northern India. The Agricultural Innovation Partnership is being launched by India and USAID under “Feed the Future,” the U.S. government’s global hunger and food security initiative.

“We are pleased that this AIP project has been selected for funding by USAID-India, as the U of I has had a long history of capacity building in agricultural higher education in India,” said Schuyler Korban, director of ACES Office of International Programs.

“As part of the strategic partnership between the United States and India, both countries have agreed to intensify our collaboration to increase agricultural production, develop efficient marketing systems, and reduce malnutrition for a sustainable and inclusive Evergreen Revolution,” said

Gary Robbins, USAID-India director of food security.

The consortium will strengthen the capacity of state agricultural universities by revising university curricula to include important issues, such as market-led demand and the potential impact of climate change on agriculture.

The consortium also will develop and pilot innovative Extension models to improve the expertise of agricultural graduates in their provision of management and agri-technology support to farmers.

“This is a wonderful opportunity for our Illinois faculty to be actively involved in this project,” said Prasanta Kalita, the U of I’s lead faculty member on the project.

“Our main involvement will be to help develop new-generation academic curriculum for Banaras Hindu University that will be transferred to other similar universities in India while actively engaging in research and Extension initiatives for managing and utilizing natural resources, and providing guidance in establishing a center for teaching excellence,” said Kalita.

More than half a century ago, the U of I began a long-standing educational partnership with Pantnagar University in India, creating the land-grant model in India. Most recently, members of U of I’s ACES Global Academy took part in a 14-day experience in India to study the food value chain systems there.

Agriculture leaders from across the state had a full plate of issues to discuss with lawmakers last week during the Agriculture Legislative breakfast in Springfield. Above, State Rep. David Reis (R-Willow Hill), second from left, chats with Illinois Farm Bureau directors, left to right, Chris Hausman, Jim Anderson, and Richard Ochs. Below, Lt. Gov. Sheila Simon, second from left, discusses ag issues with representatives of the Extension Partners, left to right, Jerry Hicks, Jeanne Harland, and Pam Weber. (Photos by Kay Shipman)

Leaders Continued from page 1 by a C-FAR task force.

• The Senate Ag Committee also passed Frerich’s SB 2010 that would replace the existing Fertilizer Research and Education Council with a similar program overseen by the Nutrient Research Education Council. The legislation seeks to prevent money raised from fertilizer fees being used by the state for other purposes.

The bill also changes and increases fees on the fertilizer industry to fund the IDOA’s Bureau of Agriculture Products Inspection program to ensure proper fertilizer registration and distribution licenses, quality control, inspection of anhydrous ammonia storage tanks and nurse tanks, and industry training. IFB supports the legislation as amended.

• An IFB legislative initiative, SB 1841 has been assigned to the Senate Environment Committee. Sponsored by Sen. Linda Holmes (D-Aurora), the bill directs the Illinois Environmental Protection Agency (IEPA) to serve entities notices of alleged violations within 90 days rather than 180 days after it receives a complaint. The bill also would prohibit IEPA from disclosing investigative information until it has served the alleged violator with a violation notice.

• The Senate Ag Committee has passed SB 1852, sponsored by Sen. David Luechtefeld (R-Okawville). The bill would form a farmers’ market task force to help the state agriculture director enact statewide administration regulations for farmers’ markets. IFB supports the bill.

• IFB opposes HB 307, sponsored by Rep. Michael Tryon (R-Crystal Lake), which is in the House Agriculture and Conservation Committee. The bill would allow an individual or entity to block or destroy drainage tile on his property after a licensed hydrological engineer or professional with similar qualifications determines that action would not negatively impact water runoff in the drainage district.

• IFB also opposes Tryon’s HB 307 that is assigned to the House Counties and Township Committee. The bill would allow any county board to regulate –- for public health purposes — operations with more than two livestock animals on property of three acres or less and the animals are located within 500 feet of any neighbor’s residence.

• Another IFB proposal, HB 1868 has been assigned to the House Environment and Energy Committee. The bill, sponsored

by Rep. Robert Pritchard (R-Hinckley), would establish a trust fund and money to remove abandoned wind energy farms. The owner of a wind energy facility would have to deposit and maintain a letter of credit with IDOA until the facility has been removed.

If an individual proves a wind farm has been abandoned, IDOA would request payment and put the money into a Wind Energy Deconstruction Fund Trust Account. IDOA also would levy an annual fee on commercial wind energy owners who are generating wind energy in the state.

Page 9 Monday, March 14, 2011 FarmWeek

BROADBAND

Illinois moves forward with broadband map, projects

BY KAY SHIPMAN FarmWeek

Illinois’ efforts to expand high-speed Internet continue with a new map of broadband services and progress on federally funded Internet projects, members of the Illinois Broadband Deployment Council learned last week.

The first phase of an interactive broadband map recently was posted at {www.broadbandillinois.org}, said Drew Clark of Partnership for a Connected Illinois.

An individual may see a listing of all the Internet service providers and the types

of services they offer for that area by simply clicking on any online map location. The

do so far,� Clark told council members.

Clark encouraged people

‘This is just the beginning of what we’ve been able to do so far.’ — Drew Clark Partnership for a Connected Illinois

map location also lists the broadband community centers, such as schools, libraries, and hospitals. “This is just the beginning of what we’ve been able to

to provide online feedback about the types of Internet information that would be helpful and could be added to the online map.

Progress also is being

made on broadband infrastructure projects across the state.

Construction crews laid new fiber-optic cable last week as part of a project in Northwestern Illinois, said John Lewis with Northern Illinois University. Lewis added environmental assessments were submitted for a second broadband project in the region and said he was optimistic that construction would start next month.

Construction was to start “within days� on a broadband project that will cover 23 Southern Illinois counties,

according to Scott Riggs with Clearwave Communication.

To keep people informed about the project’s progress, a website has been developed at {http://clearwavebroadband. com}. Additional information is being posted on Facebook and Twitter, Riggs noted.

Updates on a 55-county Central Illinois broadband project are available online at {www.illinois.net}, said Lori Sorenson with Illinois Century Network. Environmental statements were submitted in January, and Sorenson said she hopes project construction starts soon.

USDA announces $25 million in community broadband grants The nation’s rural communities without access to highspeed Internet may apply for $25 million in grants through USDA Rural Development, the head of USDA Rural Utilities Service announced.

USDA is making an additional $25 million Jonathan Adelstein available in community connect grants as part of the Obama administration’s eco-

nomic development plan to help rural areas, Jonathan Adelstein told reporters during a national teleconference. “The next Steve Jobs may be in a rural community that doesn’t have broadband today,� Adelstein said.

Aneesh Chopra, chief technology officer with the White House Office of Science and Technology Policy, said the administration views Internet funding as an investment in innovation and a building block for the future.

With Internet access,

entrepreneurs and innovators “could live in any community — rural or urban,� Chopra told reporters.

Grant applicants must contribute 50 percent matching funds and establish a community center that provides the public with free

Internet access for two years.

Some potential applicants questioned USDA’s rule that a project is ineligible if a single person living within a project area can access Internet. “The entire (project) service area must be unserved,�

Adelstein said. USDA wants to encourage applicants to expand Internet service into areas without any services, he added.

The application deadline is May 3 and USDA hopes to award funding by Sept. 30. — Kay Shipman

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FarmWeek Page 10 Monday, March 14, 2011

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One source for Illinois farmers – text,, pphotos,, audio, vid video, deo, quotes, weather, weather r, cash c prices and more..

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Page 11 Monday, March 14, 2011 FarmWeek

EDUCATION

DATEBOOK March 15 Illinois State University Ag Awareness Day, 9 a.m. to 4 p.m. on the quad east of Schroeder Hall on the Normal campus.

Activities include display of farm equipment.

March 15-16 Illinois Land Values Conference, Parke Hotel and Conference Center, Bloomington. For conference registration information, call 262-253-6902. Hotel reservations can be made by calling the Parke Hotel at 309-662-4300.

March 18 Western Illinois University beef evaluation station performance tested bull sale, starting at 7 p.m., WIU Livestock Center, Macomb. For information or a sale catalog, contact the School of Agriculture at 309-298-1080.

April 2 Illinois/Wisconsin Bi-State Horse Workshop 8 a.m. to 2:15 p.m. at the Kenosha County Center, Bristol, Wis. Early registration deadline March 28. To register or for information, contact University of Illinois Lake County Extension, Grayslake, at 847-223-8627 or go online to {http://web.extension.uiuc.edu/lake/}.

SIU College of Agricultural Sciences sets Ag Industry Days Southern Illinois University (SIU) College of Agricultural Sciences will hold its seventh annual Agriculture Industry Days April 14-16 on the Carbondale campus.

The three-day event provides opportunity for prospective students and their families to tour the campus and research farms and discuss agriculture programs with faculty and students.

Other visitors may see a variety of exhibits and participate in educational demonstrations. In addition, the college will host FFA judging competitions.

Visitors may tour the green roof project at the Agriculture Building April 14 from 10 a.m. to 2 p.m. The project includes a rooftop vegetable research garden.

Agriculture scholarship digest Illinois Pork Producers and Illinois Purebred Swine Council — The Illinois Pork Producers Association (IPPA) and the Illinois Purebred Swine Council have $15,500 in scholarships for young people in the pork industry who will be enrolled in college in fall 2011.

The application deadline is April 1.

Scholarships available are: three gold scholarships of $2,000 each; three silver scholarships of $1,500 each; and three bronze scholarships of $1,000 each. The funding is made available through the Keppy Foundation.

Auction Calendar Mon., Mar. 14. 10 a.m. Coles Co. Real Estate. Irvin Von Lanken Estate, CHARLESTON, IL. Stanfield Auction Co. www.stanfieldauction.com Tues., Mar. 15. 9:30 a.m. Farm machinery. Kampen Farms, BAILEYVILLE, IL. Gehling Auction Inc. www.gehlingauction.com Tues., Mar. 15. 10:30 a.m. 80 Ac. Warren Co. Reva E. Hinderliter, ALEXIS, IL. Gregory Real Estate & Auction LLC. Wed., Mar. 16. 10 a.m. Farm Auction.

George J. and Patricia Fleck Farm, SHERMAN, IL. Mike Maske Auction Service.

Thurs., Mar. 17. 10 a.m.

Consignment Auction. GIBSON CITY, IL. Bill Kruse, Auctioneer. billkruse.net Thurs., Mar. 17. 9 a.m. Farm Machinery Consignment Auction.

CARTHAGE, IL. Sullivan & Son Auction LLC. www.sullivansonauction.com Thurs., Mar. 17. 10:30 a.m.

Farmland Auction. Keith A. Richardson, NEW WINDSOR, IL. Gregory Real Estate and Auction LLC. biddersandbuyers.com Fri., Mar. 18. 8:30 a.m. Consignment Auction. HAMEL, IL. Ahrens and Niemeier. www.a- nauctions.com Fri., Mar. 18. 10 a.m. and Sat., Mar. 19. 9:30 a.m. Estate Auction. Robert Gayman Estate, ROSEVILLE, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Fri., Mar. 18. and Sat., Mar. 19. 8:30 a.m. both days. Consignment Auction. ANNAWAN, IL. Hatzer and Nordstrom Eq. Co. www.whatzernordstromauction.com Sat., Mar. 19. 9 a.m. Annual Spring

Auction. EDINBURG, IL. Cory Craig, Auctioneer.

Sat., Mar. 19. 9:30 a.m.

Consignment Auction. JACKSONVILLE, IL. Larry Derricks and Hank Pool, Auctioneers. www.joyceauctions.com Sat., Mar. 19. 10 a.m. Farm machinery. Doug and Mary Jo Coartney, ASHMORE, IL. Stanfield Auction Co. www.stanfieldauction.com Sat., Mar. 19. 9 a.m. Large MultiFarmer Auction. OKAWVILLE, IL. Riechmann Bros., LLC. www.riechmannauction.com, www.topauctions24-7.com or www.biddersandbuyers.com Sat., Mar. 19. 9 a.m. Consignment Auction. Leland Lions Club. LELAND, IL. www.lelandlionsclub.com Mon., Mar. 21. 9:30 a.m. Machinery Auction. TAYLORVILLE, IL. Micenheimer Auction Service. www.micenheimer.com Tues., Mar. 22. 9:30 a.m.

Consignment Auction. OREGON, IL. Northwest Eq. Tues., Mar. 22. 1 p.m. Land Auction.

Murray Wise Associates LLC. murraywiseassociates.com Tues., Mar. 22. 10 a.m. Public Land Auction. Trinity Community Church, FARMER CITY, IL. Haycraft Auction Co. www.haycraftauctions.com Fri., Mar. 25. 10 a.m. Land Auction Bureau Co. Herbert Bialas, ORIN, IL. Espe Auctioneering. www.espeauctions.com Sat, Mar. 26. 9 a.m. Farm eq. and more. ALTAMONT, IL. Stuckemeyer Auction/Realty. www.stuckemeyerauction.com Sat., Mar. 26. 8 a.m. Consignment Auction. CANTON, IL. Rt. 9 Auction Inc. www.laffertyauction.com

Exhibits open at 8 a.m. on April 15 followed by competitions in horticulture, livestock, and dairy. Awards will be presented at 1 p.m.

Activities for visitors of all ages will start at 8 a.m. on April 16. Topics covered will include landscape design and global information systems. Demonstrations will be offered on forestry, animal care, and beef ultrasounds. Visitors may participate in a guided hike.

At 11:30 a.m., Chancellor Rita Cheng will give the keynote address, followed by a meal donated by Illinois beef and pork producers.

For more information, go online to {www.coas.siu.edu} or call the college at 618453-2469.

Sat., Mar. 26. 10 a .m. Farm machinery. Gramley Grain Farms, LLC, ELBURN, IL. Espe Auctioneering. www.espeauctions.com Sat., Mar. 26. 9 a.m. Land Auction DeWitt Co. Heritage Farms LLC, WAPELLA, IL. Haycraft Auction Co. Inc. www.hbtagservices.com or www.haycraftauctions.com Sat., Mar. 26. 9 a.m. Consignment Auction. LAWRENCEVILLE, IL. Groff Eq. Mon., Mar. 28. 10 a.m. Edgar Co. Land Auction. Larry and Scott Soberg, PARIS, IL. Moss Auction Team. www.mossauctionteam.com Mon., Mar. 28. 2 p.m. Land Auction Hancock Co. The Leo Markin Trust and the Ann Markin Estate, CARTHAGE, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Tues., Mar. 29. 10 a.m. Land Auction. Duane and Darrel Seim, PAXTON, IL. Bill Kruse, Auctioneer.

Wed., Mar. 30. 9:30 a.m.

Consignment Auction. ALBERS, IL. Mark Krause Auction Service. www.krauszauctions.com Wed., Mar. 30. 11 a.m. Land Auction.

Gary and Jeff Schone, BLUFFS, IL. Rahe Appraisal and Auctioneer.

Thurs., Mar. 31. 4 p.m. Crawford Co. Land Auction. Martha Rodrick, CHAUNCEY, IL. Gregg Parrott, Auctioneer. www.sellafarm.com Fri., Apr. 2. 10 a.m. Land Auction Champaign Co. Ruben Bidner, MAHOMET, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Apr. 16. 9 a.m. Consignment Auction. Nite Eq., PECATONICA, IL. Jim Sacia, Dan Powers, Lenny Bryson and Cal Kaufman, Auctioneers. www.niteequip.com

Eligible applicants must either be enrolled in an undergraduate program or will enroll by fall 2011.

Applicants must be pursuing any undergraduate degree at any two-year or four-year college.

An applicant must submit a completed application form, transcripts, a list of activities, and an essay on how the pork industry has positively influenced his or her life.

In addition, the Illinois Purebred Swine Council will award four Ryan and Friends Scholarships of $500 each.

Eligible applicants must attend a university, college, or

community college in fall 2011. Applicants also must have been a 4-H or FFA member.

Applicants must submit a completed application form, transcripts, list of achievements and activities, statement of financial need, and an essay on why they want a career in production agriculture.

For more information or an application, go online to {www.ilpork.com} or call the IPPA office at 217-529-3100.

FarmWeek Page 12 Monday, March 14, 2011

AG WEEK National Ag Week is being celebrated this week. Following are some of the many ways county Farm Bureau members plan to celebrate the week.

OOK — The Cook County Farm Bureau Foundation and Chicago High School for Ag Sciences’ FFA will sponsor its High 5 Illinois!

Ag Day event Friday for third grade students to learn about Illinois’ top agricultural products. The event will be held at the Chicago High School for Ag Sciences (111th & Pulaski). Approximately 400 third grade students will rotate through different stations where each presenter will focus on a major agricultural product such as corn, soybeans, and hogs.

UMBERLAND — The Women’s Committee will sponsor a coloring contest for children ages 3-11.

Coloring sheets can be picked up at the Farm Bureau office, local banks, and post offices.

Deadline to return the sheets to the Farm Bureau office is March 30.

• The Women’s Committee will sponsor a photo contest for children ages 12 and older.

The categories are “Nature and Landscape”“Animals,” and “Farm-Related.” Entries must be a framed 4x6 color or black and white photo and have been taken in Cumberland County within the last three years. One entry per category per person. Entries must be received at the Farm Bureau office by March 30.

• Ag Week informational table tents and “Ag in the Eye of a Student” placemats will be placed in participating restaurants. The placemats were colored by Cumberland Elementary students.

EKALB — Babies born during National Ag Week will receive special gift baskets at two local hospitals. The gift baskets are filled with an assortment of agrelated items, compliments of local farmers, the DeKalb County Farm Bureau, pork, beef, corn and soybean groups. Additionally, snack baskets filled with corn and soybean snacks and ag facts are provided for hospital employees to enjoy during the week. Farm Bureau will donate ag-related books to school libraries.

OUGLAS — Ag Week appreciation breakfasts will be at 7 a.m. at the following dates and locations: Tuesday, Deb’s Café, Villa Grove; Wednesday, R&I, Arthur; Thursday, Country Junction, Newman; and Friday, Dutch Kitchen, Arcola. Fill out a brief survey and breakfast is free. Call the Farm

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Bureau office at 217-253-4442 to receive a coupon for the breakfast.

DWARDS — Displays of entries for the school contests for National Ag Week will be at the Citizens National Bank and First Bank in Albion, First Bank in Grayville, and First State Bank in West Salem.

• Tray liners featuring school contest winning entries will be at the McDonald’s in Albion.

• The Foundation will give books to the Wells Elementary, Albion Grade School, and West Salem Grade School.

• The Women’s Committee will have a window display “May the Farm Be With You” at the West Salem Country Market.

FFINGHAM — Farm Bureau will sponsor agricultural quizzes on local radio stations. Ag-related multiple choice questions will air Monday through Friday on local radio stations including WXEF and WKJT. Winners of the quizzes will receive a $25 gift certificate to a local grocery store or a local gas station.

ULTON — Volunteers are hosting a Farmer’s Share Breakfast from 7 to 10 a.m. Saturday at the Fulton County Farm Bureau Building. Cost is 68 cents.

Breakfast will be bacon, toast, pancakes, biscuits and gravy, scrambled eggs, orange juice, milk, and coffee.

ALLATIN — Farm Bureau is sponsoring newspaper and radio advertising highlighting Ag Week.

ANCOCK — The Education Committee will give three new ag-related library books to each elementary school in the county. The books feature some type of agriculture. Merlin Tobias, a local farmer from Basco, will visit second grade classrooms on Monday (today). Students are asked to find pictures of things or people related to agriculture and glue their pictures onto a barn frame artwork. Students will do a brief write-up on the pictures they selected and how they relate to agriculture.

The artwork will be displayed in the school during the week.

• An E85 promotion will be from 11 a.m. to 1 p.m. Friday at Roger Law’s Service Station, Carthage. E85 will be marked down to 85 cents a gallon during the promotion with a maximum of 10 gallons per customer. Free hotdogs, chips, and soda will be served. The promotion is sponsored by the Marketing Committee, WestCentral FS, and the Illinois Corn Growers Association.

• A series of letters to editors and press releases will be sent to local media.

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• A Farmer’s Prayer insert was sent to the county’s churches.

ENRY — The Young Leaders Committee will visit county fourth grade classrooms. They will show a video, do a project with the students, and discuss their farming operations. In conjunction with the visits, the “Where Does My Food Come From?” T-shirt contest will be held. Fourth graders may submit a poster depicting agriculture in Henry County, and the winning entry will be transferred to T-shirts for all the students and teacher in the class.

• The Women’s Committee will be provide church bulletin inserts to area churches.

• The Women’s Committee will sponsor a poster contest “Where Does All That Corn Go?” for first, second, and third grade students.

• Table tents featuring ag facts will be placed on restaurant tables throughout the county to celebrate Ag Week.

• Area businesses will be asked to help celebrate National Ag Week by placing a message on their marquees.

ACKSON — The Women’s Committee has teamed up with the John A. Logan Museum in Murphysboro to open a farm exhibit “On the Farm: Memories of Not that Long Ago.” The exhibit has many items including tools and appliances. The grand opening is Tuesday and will run through November.

• Farm Bureau will donate a bag of agricultural books to area schools for their school libraries.

ANE — Farm Bureau will sponsor its 27th Annual Ag Days at Mooseheart Fieldhouse Tuesday through Thursday. More than 1,500 fourth graders will hear a series of 20 presentations from area farmers, agri-business representatives, and Farm Bureau volunteers on agricultural topics. Farm Bureau members interested in seeing or volunteering for Ag Days may contact the Farm Bureau at 630-584-8660 for more information.

ANKAKEE — The annual “Kids Day at the Farm” program will be Wednesday and Thursday.

Fourth grade students are invited to attend. Students will rotate between 24 separate presentations, which include embryology, specialty crops, herb production, soybeans, ethanol, dairy, Johnsonville Brats, and a nutritional program “Have you eaten a flower today?” Live animals also will be on display.

NOX — The Women’s Committee will donate

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a baby basket filled with agricultural items to the first baby born in Knox County during National Ag Week.

• Farm Bureau will sponsor the Chamber of Commerce’s “Galesburg On the Go” breakfast Wednesday and will give a presentation during the meal.

• The Young Farmers will donate grain bin rescue tubes to five fire departments in Knox County. They also are providing two training sessions Saturday to the departments on how to properly use the tubes as part of National Ag Week.

ASALLE — The Young Leaders Committee will sponsor a fourth grade coloring contest. The winner will receive a “Farming Our American Heritage” sweatshirt and an ice cream party for his or her class.

• The Membership Committee worked with businesses that have joined the local discount program to offer a special Ag Week discount. For a complete description of the discounts offered, visit the website {www.lasallecfb.org}, see the March 7 edition of AgriSource, or call the office at 433-0371.

• The Membership Committee will donate agriculturalrelated books to area libraries.

EE — The Public Relations Committee will sponsor the annual Farmer’s Share Breakfast from 8 to 11 a.m. Saturday at the Loveland Community Building, Dixon.

The cost for a sausage and pancake breakfast is 50 cents, representing the actual amount of income a farmer will receive from the breakfast.

• The Young Leader Committee will donate the book “Farmer George Plants a Nation” by Peggy Thomas to Lee County public libraries.

IVINGSTON — A spoof of “Are you Smarter than a Fifth Grader?” will be part of the Pontiac Area Chamber of Commerce and Livingston County Farm Bureau sponsored Issues and Eggs Breakfast. Kevin Daugherty, Illinois Farm Bureau education director, will conduct the “Are You Smart Enough to Farm?” game show at 7:30 a.m. Tuesday at the Pontiac Elks Country Club.

• The Women’s Committee donated two agricultural-related children’s books to 20 grade school libraries in the county.

• More than 2,500 parishioners had an agricultural insert in their church bulletins.

• Nearly 240 students participated in a poster contest to find a design for a placemat with the theme, “Agriculture and Me.” The winning posters

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were made into 8,500 placemats, which were distributed to area restaurants during Ag Week.

• Farm Bureau will host a daily question about agriculture on WJEZ 98.9 radio station. Each day the winning caller will receive a $25 FS gas card, compliments of Evergreen FS. • The Young Leaders “Welcome to the Ag World” baby gift bags will be given to the first 25 babies born at OSF St. James Hospital during March.

Some items each bundle contains are baby powder with corn starch, oatmeal cereal with oatmeal and soy oil, and chicken and turkey baby food.

• A “One Farmer Feeds 155 People” display will be on the Farm Bureau office lawn. The Young Leaders and the six FFA chapters in the county created a yard display of 155 plywood “people” to visually represent the number of people each farmer feeds. Each chapter painted their “people” their school colors. A 3’ x 6’ banner stating “One Farm Feeds 155 People” was posted as well.

CDONOUGH — The books “Little Joe,” “Pigs & Pork,” “Pigs,” “Farmer George Plants a Nation,” “Seed, Soil and Sun” and the “Beef Princess of Practical County” were donated to local grade school classrooms.

• Farm Bureau placed an ad in the local papers featuring local family farm photos in an effort to raise awareness about family farm ownership.

ARION — Farm Bureau will sponsor a 35-cent breakfast from 6 to 9 a.m. Wednesday at the Farm Bureau office. A breakfast of scrambled eggs, pancakes, biscuits and gravy, orange juice, milk, and coffee will be served. Tickets are available at the Farm Bureau office or from a director. The 35 cents represents the average income received by a farmer for the agricultural commodities in a $5.50 breakfast purchased at a restaurant. No carryouts.

ASON — The Farm Bureau Board, Women’s Committee, and Young Ag Leader Committee will visit second and third graders in the county with a lesson about agriculture. They will bring a combine, newer tractor, antique tractor, and a semi truck to the schools.

ERCER — Farm Bureau will sponsor a food drive with donations going to the Mercer County Food Pantry. Non-perishable food items can be dropped off from 8 a.m. to 4 p.m. Monday

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See Ag Week page 13

Page 13 Monday, March 14, 2011 FarmWeek

FROM THE COUNTIES

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UREAU — The Bureau, LaSalle, and Lee County Young Leaders will sponsor a bowling night Thursday, March 24. The evening begins at 6:30 p.m. at Lou’s La Grotto, Peru, for pizza. Bowling will follow at the Super Bowl, Peru. Members between the ages of 18 and 35 and their families are invited.

Call the Farm Bureau office at 815-875-6468 by Thursday for reservations or more information.

ARROLL — The Public Relations Team will sponsor an informational meeting at 7 p.m. Thursday, March 24, at the Naaman Diehl auditorium. The facilities sales tax, which will be on the April ballot, will be discussed. Brenda Matherly, Illinois Farm Bureau assistant director of local government, will be the speaker. Call the Farm Bureau office at 815244-3001 for more information.

• Deadline to return scholarship applications is Thursday, March 24. Call the Farm Bureau office at 815-244-3001 or visit the website {www.carrollcfb.org} for an application form.

HAMPAIGN — Farm Bureau will sponsor a “Trade and Its Impact on Agriculture” meeting at 7 p.m. Tuesday, March 22, at the Farm Bureau auditorium. Tamara Nelsen, Illinois Farm Bureau senior director of commodities, will be the speaker. Call the Farm Bureau office at 325-5235 or

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visit the website {www.ccfarmbureau.com} for more information.

OOK — The Public Policy Team will cosponsor a seminar for property owners at 7 p.m. Monday, March 21, at the Farm Bureau office. Representatives from the board of review, assessor’s office, and Illinois Farm Bureau will be the speakers. Call the Farm Bureau office at 708-3543276 for reservations or more information.

• The Members Relations Team will sponsor a two-day boating safety course from 9 a.m. to 3 p.m. Saturday, March 26, and from 10 a.m. to 4 p.m. Sunday, March 27, at the Farm Bureau office.

Bring your own lunch. Call the Farm Bureau office at 708-354-3276 for reservations or more information.

• The Commodities and Marketing Team will sponsor a “Farming on Your Balcony” workshop from 9 to 11 a.m.

Saturday, April 9, at the Farm Bureau office. Participants will learn how to raise produce in small areas. Call the Farm Bureau office at 708354-3276 by Wednesday, April 6, for reservations or more information.

EWITT — The Young Leaders Harvest for All food drive will be from 10 a.m. to 2 p.m. Saturday at the Clinton Save-A-Lot, Clinton IGA, and Farmer City’s Niemann’s Market.

• The Prime Timers will carpool at 9:45 a.m. Friday,

March 25, from the Farm Bureau office to the Syngenta seed research farm. Lunch will be at Ted’s Garage at 11:30 a.m. followed by a 1 p.m. tour of the Syngenta distribution center. Call the Farm Bureau office for more information.

• Farm Bureau will have a booth from 4 to 8 p.m.

Wednesday, March 30, at the Clinton Chamber Business Expo, at the Clinton Junior High School.

• Scholarship applications are available at the Farm Bureau office and from high school vo-ag teachers and counselors.

OUGLAS — The annual meeting will be at 5:30 p.m. Thursday, March 24, at Yoder’s Kitchen, Arthur. Max Armstrong, WGN Radio, will be the speaker. Dinner will be served. Call the Farm Bureau office at 217-253-4442 by Tuesday for reservations or more information.

ENRY — Young Leaders will sponsor a countywide food drive “Sharing the Harvest” through March 25. Non-perishable food items may be dropped off at the Farm Bureau office or at any Country Financial office in Henry County.

Young Leaders will deliver the collected items to food pantries throughout the county. Contact the Farm Bureau for more information.

ASALLE — The Viewpoint Committee will sponsor a call-a-thon

from 7 to 8 p.m. Tuesday.

Committee members will surface new ideas, concerns, and needs of its membership.

EE — During the month of March, Culvers in Dixon will double the discount it provides Farm Bureau members from 5 to 10 percent to show appreciation for agriculture.

CHUYLER — The Schuyler County Farm Bureau Foundation has scholarships available for students enrolled in an ag-related field of study for the fall semester.

Applicants must have an ag background or be residents of Schuyler County. Call or stop by at the Farm Bureau office for a scholarship application.

Applications are due by 4 p.m.

Friday to the Farm Bureau office.

TARK — The Stark County Farm Bureau Foundation has a scholarship available for a student who will be a freshman or sophomore in college and another for a student who will be a junior or senior in college. A third scholarship will be awarded to the most deserving applicant in either category.

Applicants must be a member of Stark County Farm Bureau or a dependent of a member or a Stark County resident pursuing a degree in an ag-related field of study.

Deadline to return applications is by 4:30 p.m. Thursday, March 31. Call the Farm Bureau office for more information.

AYNE — Seven $500 scholarships are available for Wayne County students majoring in an agrelated field of study for the fall semester. Applications are available on the website {www.waynecfb.com}. Deadline to return applications is March 31.

HITE — The Young Leader Committee has a $500 scholarship available to a White County student majoring in an ag-related field of study for the fall semester. Applications are available on the website {www.whitecfb.com}. Deadline to return applications is March 31.

INNEBAGO — The annual meeting will be at 5:30 p.m. Saturday at the Discovery Center, Rockford. A buffet dinner will be served. Cost is $10. Call the Farm Bureau office at 815962-0653 for reservations or more information.

• Farm Bureau will sponsor a Hawaii trip preview meeting at 7 p.m. Thursday, March 31, at the Farm Bureau office.

The 10-day trip, which will be Jan. 8-17, 2012, will coincide with the American Farm Bureau Federation annual meeting. Tri-State Travel will provide information on the tour.

Friday and Saturday.

• The Peoria, Fulton, Tazewell, and Woodford County Farm Bureaus will sponsor a billboard campaign. Five identical bill-

Mariman, U of I Extension, will be the guest speaker.

• Table tents with agriculture facts will be placed at restaurants throughout the county.

A L I N E — Farm Bureau is sponsoring newspaper and radio advertising highlighting Ag Week.

C H U Y L E R — The Ag Day Committee will sponsor an Ag Day breakfast from 6 to 8 a.m.

Friday at the Phoenix Opera House, Rushville. Donations will be accepted for the breakfast. Awards for Master Farm Family, Patron of Ag, and Young Farm Family will be at 7 a.m.

During the breakfast, the Sarah D. Culbertson Memorial Hospital will be conducting preventative health screenings. Call 217-3225269 for more information about the health screenings.

H E L B Y — Farm Bureau, Shelby County News, and Wade’s Quality

Meats will sponsor “FarmVille vs. Farmers” agriculture trivia contest through Sunday on the website {shelbyconews.net}. The winner will be announced March 23.

• The Young Farmers will sponsor a Farm-City breakfast from 6 to 8 a.m.

Wednesday at the Shelby County 4-H Center, Shelbyville. A breakfast of biscuits and gravy, scrambled eggs, bacon, milk, juice, and coffee will be catered by Windsor Food Center. Cost is 80 cents, which is a farmer’s share of a $4 breakfast. The breakfast is being sponsored with a donation from EffinghamClay FS. ERMILION — Farm Bureau will distribute more than 30,000 placemats to nearly 40 restaurants in Vermilion County. The placemats will focus on “Myths and Facts in Agriculture.” There are

19 Vermilion county agribusinesses co-sponsoring the project.

A B A S H — Stop by the Farm Bureau office to find out how “Agriculture is Amazing.”

Snacks and other favors will be given out all week. Free hot dogs, popcorn, and drinks will be served from 11 a.m. to 1 p.m. Thursday.

Door prizes will be drawn at the end of the week.

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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.

AG WEEK Continued from page 12 through Friday at the Farm Bureau office. For every item individuals bring in, their name will be inserted into a drawing for a $50 gift card to the Liberty Station Steakhouse. If you bring in one of the “most needed items,” you will get your name put in twice. Contact the Farm Bureau office for those items.

• Farm Bureau will sponsoring a mobile food bank from 10 a.m. to 1 p.m. Saturday at Central Park, Aledo. River Bend Food Bank will distribute food to 300 Mercer County families in need. Volunteers are needed to help hand out 10,000 pounds of food. The mobile food bank was paid for through “Bushels for Hunger.”

E O R I A — Farm Bureau will sponsor a Farmers Image TV commercial during the IHSA boys’ basketball tournament on

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boards have been put up in the Peoria area. The billboards highlight the Farmer Image campaign.

I A T T — Farm Bureau and the Cerro Gordo and Monticello FFA Chapters will sponsor an Ag Day breakfast at 7:30 a.m.

Friday at the Monticello Community Building. Paul

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FarmWeek Page 14 Monday, March 14, 2011

PROFITABILITY

The winter of more than one type of blizzard

BY CHUCK SPENCER

Enduring one of the snowiest Februarys on record was a challenge, but I recall the late 1970’s when we had one-lane paths on country roads because plows could not push the snow back any farther.

Today, friends Chuck Spencer on rural roads get frustrated if the plow truck has not come by noon.

Blizzards can be blinding, slow the process of farm work

down, cost us extra time and money, and generally create a lot more work to get the same thing accomplished during our work day.

Regulatory blizzards have a lot in common with natural ones.

This past winter may be known for its regulatory blizzard as well as snow cover in all 50 states. Agriculture and small business are involved in writing opinions and reacting to regulations addressing financial services, pesticide application, spray drift, water quality, and nutrient management from livestock farms.

One regulation we should all know more about is a proposed rule by the U.S. Environmental Protection Agency (EPA) to issue a national pollution discharge elimination system permit for pesticide applications. There is a proposed regulation scheduled to take effect April 9 in each state requiring a permit for the application of aquatic pesticides and applications of pesticides on forest lands.

Think of the paperwork created for another permit when the pesticide has already been approved through the EPA review process and has

been regulated by the Federal Insecticide, Fungicide and Rodenticide Act since 1972.

The EPA had to develop this permit process due to a court ruling in 2009 when the 6th Circuit Court of Appeals overturned EPA’s longstanding policy that did not require permits for pesticides applied on or near U.S. waters.

April 9 is nearly here and EPA does not have its final rule issued. States have proposed rules and are waiting to see the final EPA ruling.

The final rule is still under review by Office of Management and Budget. Discussions

to consider asking the Circuit Court of Appeals to delay implementation are ongoing.

Agriculture and small business need science-based, predictable regulatory processes to guide our business decisions. We can work with regulations developed in this fashion. However, if we continue to have uncertain rulings from courts and not from science, we may have to turn to legislation for corrective action.

Chuck Spencer is GROWMARK’s director of governmental affairs. His e-mail address is cspencer@growmark.com.

Traders to focus on prospective planting report, spring weather

BY DANIEL GRANT FarmWeek

The next major move in the crop markets likely will depend on U.S. farmers’ planting intentions, which will be released this month, followed by their ability to execute those intentions in April and May. USDA at its Ag Outlook Forum last month estimated farmers this year will increase plantings from last year by 3.8 million acres for corn, 600,000 acres for soybeans, and 2 million acres for cotton.

But those numbers could change in coming weeks due to an ongoing “acreage battle.”

Actual plantings also could

change depending on whether spring weather is favorable, which could favor more corn acres, or unfavorable.

USDA on March 31 will release its highly anticipated prospective plantings report.

“I think the corn market is at a breather right now as it waits to see what the March 31 report shows us,” said Dan Zwicker, market analyst with ADM Grain Group of Decatur, last week at the WILL Ag Outlook meeting in Covington, Ind. Analysts at the meeting provided reasons as to why corn acres could be above USDA’s estimated 92 million acres or below that figure.

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $34.50-54.00 $42.65 $74.00-78.00 $76.84 n/a n/a This Week Last Week 25,827 27,630 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $81.20 $79.98 $60.09 $59.19

Change 1.22 0.90

USDA five-state area slaughter cattle price Steers Heifers

This week 117.61 117.81

(Thursday’s price) Prv. week Change 112.81 4.80 112.74 5.07

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 128.42 0.83

This week 129.25

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 130-177 lbs. for 152.50-174 $/cwt.(wtd ave. 166.74); dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 3-03-11 26.4 21.4 43.9 2-24-11 49.2 19.6 24.7 Last year 34.6 21.1 38.5 Season total 1176.6 883.3 846.0 Previous season total 1147.8 645.7 853.8 USDA projected total 1590 1300 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

‘I think the cor n market is at a breather as it waits to see what the March 31 report shows us.’

— Dan Zwicker market analyst ADM Grain Group

“With a $100 per acre advantage (over soybean returns), I think corn acreage will be higher,” said Paul Coolley, analyst with ADM Investor Services of Oakland.

But Chuck Shelby, of Risk Management Commodities in

Lafayette, Ind., believes record-high cotton prices will pull more acres to that crop down south, at the expense of corn and bean acres.

“We don’t believe the (newcrop) corn price is high enough to buy 92 to 93 million acres,” Shelby said.

But analysts at the meeting were quick to point out the main issue to determine final production numbers will be weather during the growing season.

Darrel Good and Scott Irwin, University of Illinois ag economists, recently made corn yield and price forecasts based on various weather scenarios.

They calculated a trend-line yield this year of 158 bushels

per acre would not be enough to rebuild inventories, based on 92 million planted acres, and the price could average $5.75 per bushel.

The average corn price this year could skyrocket to $7 per bushel under a bad weather scenario, which could reduce the average yield to 147 bushels per acre.

On the flipside, optimal weather this growing season could produce an average yield of 169 bushels per acre, which would lead to record corn production above 14 billion bushels.

The average corn price could slip to $4.75 this year under the good weather/top yield scenario.

Analysts: In high-stakes world of farming, two heads are better than one Farmers, particularly those with less than 1,000 acres, looking to maintain or expand their operations currently face some major challenges.

Input prices this year are projected to reach a record-high, land prices have surged to $8,000-plus per acre in some areas, and competition to cash-rent ground is fierce.

“Sixty to 70 percent of land in Illinois is owned by someone who doesn’t farm it,” Dennis Hoyt, of Farmers National Co., told farmers last week at the WILL Ag Outlook Meeting in Covington, Ind. “For many of you, that may be part of your future or demise.”

Hoyt, business associate Stephen Wright and Murray Wise, founder of Murray Wise and Associates, advised farmers to deal with all the volatility and risk by looking for partnership opportunities with landlords and even other farmers.

The group of farmers that may benefit the most from partnership opportunities is those who farm 600 to 1,000 acres.

Farmers who farm less, such as hobby farmers, typically derive most of their income off the farm while those who farm more than 1,000 acres generally have more ability to spread costs and find better marketing opportunities.

“How does a 600-to 1,000-acre farmer compete and survive?” Wright questioned.

“Find opportunities to partner with neigh-

bors of similar size and style.”

Wright said many farmers have $500,000 to $1 million worth of equipment that’s capable of covering more ground. If the equipment of two operations is combined, it could allow those farmers to save money and invest in specialty equipment (such as sprayers and grain carts) that will improve the overall efficiency and productivity of both farms.

Once two farm operations surpass about 2,000 acres as a combined entity, those farmers also become more appealing to seed companies and landlords. They can buy more seed and chemicals in bulk; they may see more opportunities for specialty crop production; and they may be able to reduce their need for hired labor, according to Wright.

Such an arrangement, however, must be planned well before it will work.

“It’s a must to get legal advice (before forming a partnership),” Wright said. “Don’t do it with a handshake.”

A dependable farm partner, which could include a spouse or relative, also can help a farmer improve his or her marketing plan, according to Roy Huckabay, of Linn Group in Chicago.

“One of the best tools in the toolbox is a good partner,” Huckabay said. “Farmers often get emotionally attached to their crops” and don’t always make the best marketing decisions as a result. — Daniel Grant

FarmWeek Page 15 Monday, March 14, 2011

PROFITABILITY Corn Strategy

C A S H S T R AT E G I S T The big bang rattles markets Everyone awoke March 11 to news the largest earthquake ever to hit Japan struck in the overnight hours. Markets were hit hard as the uncertainty of the impact caused investors to start pulling positions from a number of markets, grains included. Add in protective stop orders protecting positions held by the big trading funds, and you had the mix to drive prices sharply lower. At one point, a few corn contracts were limit down.

It’s always difficult to assess the impact of an event like the one we have just seen, but it certainly isn’t bullish. But, it’s probably not that bearish either.

And, there’s a difference discerning the short-term and long-term implications of such an event. In the short term, the disruption of ports, roadways, and rail lines can halt shipments for a few days or weeks. In the long term, there’s the economic repercussions of the event and the impact it may have on demand.

And because it is Japan, it is significant. The Japanese are our top importer of corn and pork, No. 1 and 2 wheat importer, and No. 3 soybean importer. That has huge repercussions for us in both the short and long term.

Fortunately, the earthquake and tsunami were in the north-

Basis charts

eastern part of the country.

Most of the ports used to import commodities are said to be near Osaka in southwest Japan.

This will be an evolving situation that deserves attention.

We don’t anticipate any big negative repercussions from the earthquake. But, even if demand slows a little, it could be enough to cap this year’s rally in the grain markets, unless there’s major development with the new crops.

The reports coming at month’s end will go a long way to offering an insight into market potential over the next few months, too.

The industry will be especially interested in the prospective planting report.

There has been an ongoing discussion this winter about whether producers have the capability of planting enough acres of all crops.

Most of the focus has been on soybeans because of its low price relative to corn and cotton. Prices for those two will attract acreage, but we believe high insurance guarantees and available acreage will allow soybean plantings to be large enough to meet potential needs.

The quarterly grain stocks report may be equally as important, especially for corn and soybeans, because of the current tight ending stocks projections.

The March 1 stocks numbers for both are the first good benchmark indicating how good demand may have been through the first half of the marketing year. Using the combination of that demand through the first half of the season and the March 1 stocks, one can better predict demand through the end of the marketing year, and the potential ending stocks levels.

Given the tight supplies and the need for large acreage, weather will play a large part during planting, and into summer. Today’s events only serve to underscore the uncertainty and volatility markets will face this growing season.

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309-557-2274

Cents per bu.

2010 crop: May futures last week dropped through supports at $6.96 and $6.67, turning the short-term trend down into the 40-week low due later in the month. But, because of the action after the Japanese earthquake, that low could come at any time. We wouldn’t sell the break, but use rallies above $6.95 on May for catch-up sales. Hedge-toarrive (HTA) contracts for winter/spring delivery are still the best tool.

2011 crop: We wouldn’t make sales on this break.

There should be another good selling opportunity after the 40-week cycle bottoms, but maybe not as high as the recent peak.

Fundamentals: Emotions in the wake of the Japanese earthquake sparked a wave of long liquidation. Still, economic repercussions could slow Japanese imports, and they are our largest corn importer. Also, a southeastern feed group indicated they are importing Canadian feed wheat. This, and feeding of our own wheat, should help ease the stress on U.S. corn supplies.

Soybean Strategy 2010 crop: Demand for U.S. soybeans will continue to subside as South American supplies become readily available. Poor crush margins will erode domestic processor demand. Without a weather problem, lower prices are ahead. Use a rally to $13.50$13.80 to wrap up sales.

2011 crop: Low relative prices make soybeans a less attractive alternative, but the high insurance guarantees will ensure overall plantings, including soybeans, will be large. Use a rally on November to $13.60-$13.80 to make sales. Plan to increase them to 50 percent by early summer.

Fundamentals: Not only are South American soybeans about to replace U.S. soybeans in the world trade, but now total world demand may be temporarily dented because of repercussions in Japan in the wake of the earthquake.

There’s a growing sense we might have seen our smallest ending stocks estimate.

Wheat Strategy 2010 crop: Emotions in the aftermath of the Japanese earthquake pushed Chicago May wheat futures to support starting at $7. There’s a chance it could drop to $6.75$6.80, but this decline should be nearly exhausted for now.

Don’t sell the break, but plan to use a rebound to the $7.80s to wrap up sales. A HTA contract is still the best, but plan for a late April/May delivery.

2011 crop: Use rallies to

$8 on Chicago July 2011 futures for catch-up sales. Once this liquidation break is over, there should be another rally for sales.

We still prefer HTA contracts.

Fundamentals: The recent supply/demand report confirmed what the trade was suspecting, but wasn’t ready to acknowledge, export business appears to be slowing. And with shipments lagging the needed pace, it was becoming apparent the USDA forecast was too high. Conditions have improved in the Great Plains, but after the brief improvement, the shortterm weather pattern appears to have turned dry again.

FarmWeek Page 16 Monday, March 14, 2011

PERSPECTIVES

Where does USDA’s budget go?

For most of us, when USDA is mentioned, we think of agriculture — farming, ranching, livestock, fruits and vegetables, and the offices it maintains in most counties around the country to implement farm programs. We might need to change our thinking.

USDA’s budget for 2012 was recently released and, it turns out, almost 75 percent of the money it WILLIAM spends goes to BAILEY nutritional programs, with only about 10 percent allocated to what one normally thinks of as agricultural activities.

So where is 75 percent of USDA’s budget going? One program that takes more than half of USDA’s budget is the

Supplemental Nutrition Assistance Program (SNAP). I went to the USDA website to learn more about SNAP. It turns out SNAP has its roots in the Food Stamp Program.

Today, according to the website, SNAP “helps put healthy food on the table for over 40 million people each month.”

Food stamps, it seems, are becoming a thing of the past, replaced with a plastic electronic card, rather like a debit card.

The card may be used to pay for groceries at authorized food stores.

The SNAP website has a really good locator to help you pick a nearby store where eligible SNAP program participants may “use SNAP benefits to put healthy food on the table.”

Included for Macomb, as USDA authorized food stores

to purchase healthy foods, are Casey’s, Dollar Tree, and Dollar General.

The secretary of agriculture has determined it is OK for eligible participants to use SNAP money to purchase energy drinks, soft drinks, candy, cookies, snack crackers, ice cream, and birthday cakes.

The secretary also has determined that liquor, cigarettes, and hot food may not be purchased with those funds.

Child nutrition programs are another major budgetary item for USDA, taking about 13 percent of its budget. The center piece for child nutrition programs is the School Lunch Program. However, also counted as child nutrition programs are the School Breakfast Program, the Afterschool Snacks

USDA spends a large share of its funding on nutritional programs.

Program, the Fresh Fruit and Vegetable Program, and the Special Milk Program. USDA also has school lunch programs for children when school is not in session; it is called the “Seamless Summer Program.”

The final USDA administered program that receives significant funding is the Women’s, Infants and Children’s Program (WIC), taking 5 percent of the USDA budget — about the same amount as spent on farm

commodity programs.

The USDA website notes that “WIC provides for supplemental foods, health care referrals, and nutrition education for low-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children up to age five who are found to be at nutritional risk.” The secretary of agriculture, through the WIC program, has recently begun to promote breast feeding.

So the next time you think of the USDA or the secretary of agriculture, keep in mind that farming plays a very small part in their activities.

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

Good thing insect pollinators are willing to work for food What is pollination? One way to find out is to look up the definition of the word. It is just for such situations that we have dictionaries. Today you can go online to find a word definition or consult a printed text.

According to my American Heritage dictionary, the definition of pollination is “to convey or transfer pollen from an anther to a stigma of a flower in the process of fertilization.”

Like a lot of definitions, TOM that one is, TURPIN well, a bit dull.

To biologists, pollination is a process, a complex part of sexual reproduction in plants. The pollination system has evolved over millions of years and involves specialized plant structures and transportation of pollen by mechanical means or by living

organisms. It also is a tale of bribery and sometimes deceit fitting for a tell-all TV talk show.

Plant pollination takes place under our very noses on a daily basis during the growing season, but mostly to indifferent spectators. Except, that is, to the 30 percent or so of us who suffer from allergic rhinitis, a respiratory ailment better known as hay fever. This is a disease that is often caused by the inhalation of pollen grains.

So how did insects get involved in plant pollination?

No one knows for sure, but one hypothesis is that it all began when some ancient beetles discovered that pollen was a good food item.

Why beetles and not some other type of insect? As it turns out beetles have been on the earth for a long time and were here before plants even had flowers. In addition, beetles have mouthparts of the chewing type that would have

made it easy for them to masticate and ingest pollen.

What happened after this is an example of what scientists call coevolution.

Coevolution is when two organisms have evolved to a point where both are dependent on the other for survival.

An example of such a system is some flowering plants and insects that transport pollen.

Here’s how it works. Plants produce pollen that needs to be transported to other plants for sexual reproduction to be successful.

The plant has a flower that is an attraction to insects because of its odor and ultraviolet color patterns. The flower also is a convenient landing pad.

Insects visit flowers because of the availability of a sip of nectar, a food item for the insect.

The structure of the flower is such that the insect will get pollen on its body as it works

its way to the source of the nectar.

The sip of nectar is small enough so that the insect goes from flower to flower to satisfy its hunger. When that happens pollen from one flower is transferred to another by the insect.

The result is that the plants are pollinated and the insects get fed. It’s a “You scratch my back and I’ll return the favor” type of system that is very popular in the political world.

On the insect side of the deal, the best pollinators normally have the ability to fly, have mouthparts structured to imbibe nectar and a hairy body good for collecting pollen.

Insect pollinators include a few beetles, some butterflies and moths, a few flies, a few wasps, and a lot of bees.

Most plant pollination by insects is due to bees where the pollen, and sometimes the nectar, becomes a food source for the adults and the

immature forms.

The bee pollinators include those called solitary bees because they each have their own nests. Some, such as sweat bees and mining bees, live in ground burrows. Others, such as orchard bees and carpenter bees, live in wood cavities.

The most recognizable of the bees are social bees that live in colonies.

These are bumble bees that have an annual colony and honey bees that live in a colony that persists over several years.

Pollination seems like a great system where everyone wins. Not so. A few bumble bees are known as nectar thieves. They chew through the flower and steal the nectar without carrying pollen. Now that’s a real slap in the face of your honey!

Tom Turpin is an entomologist at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.end

LETTER TO THE EDITOR Celebrate contributions of ag teachers, education Editor: Students enrolled in agricultural education courses across the country will celebrate the second annual National Teach Ag Day on March 24.

National Teach Ag Day is a day set aside to celebrate agricultural education and for teachers to share with their students the possibilities of a career in the teaching profession.

A national shortage of agricultural educators exists in the United States. National Teach Ag Day is part of a campaign to raise awareness of the career.

Agriculture teachers prepare students for high-demand careers in cutting-edge industries, such as biotechnology, renewable energy, food production, and more.

Ag teachers also teach students how to be leaders

and prepare them to take on the challenges of the next generation.

Many people do not realize that students enrolled in agriculture classes at the high school level are learning things they cannot get anywhere else. Not only are they learning basic shop, horticulture, and ag science concepts, but they also are learning math, science, and language arts skills in a hands-on way that helps them apply their lessons to real life.

National Teach Ag Day is a part of the National Teach Ag Campaign, an initiative of the National Council for Agricultural Education led by the National Association of Agricultural Educators.

For more information about teaching agriculture, visit {www.naae.org/teachag}.

SARAH CARSON, University of Illinois Ag Ed Club vice president

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