FarmWeek March 21 2011

T H E I L L I N O I S FA R M Bureau Market Study Tour concluded last week with visits to Panama and Colombia ...................................3

A STATELY BRICK structure with arching windows near Eastern Illinois University represents a future market for home-grown biomass fuel. ........5

FARMLAND VALUES and cash rents continue to climb in Illinois, according to a statewide survey released last week. ...................6

Monday, March 21, 2011

Two sections Volume 39, No. 12

House doesn’t take up effort to end ag sales tax exemptions

BY KAY SHIPMAN FarmWeek

Agriculture’s value to the state economy helped drive home the importance of sales tax exemptions for agricultural inputs, House Revenue and Finance Committee members told FarmWeek.

Last week, the House passed SB 4 without any amendments that would have ended sales tax and income tax exemptions on Dec. 31, 2012. The previous week the House Revenue and Finance Committee had held those amendments in committee. Last week was the deadline for bills to be passed out of their chamber of origin.

SB 4 would provide an income tax credit to the Continental General Tire manufacturing plant in Mt. Vernon. The company employs a couple thousand workers and is considering an expansion and adding a couple hundred more employees, said House Revenue and Finance Committee Chairman John Bradley (D-Marion).

“I understand the importance of those (agriculture sales tax exemptions) and appreciate all the people who reached out to members of the General Assembly and explained (the exemptions’) importance,” Bradley said.

Fellow committee member Rep. Frank Mautino (D-Spring Valley) noted the sales tax exemptions have a tremendous impact on the farm economy.

Those exemptions related to agriculture include sales tax exemptions for seed, feed, fertilizer, agricultural equipment, breeding horses, and semen for artificial insemination of livestock.

“When you’re buying a $300,000 piece of equipment, a sales tax (exemption) can make the difference on whether you buy it here or in Iowa or Indiana,” Mautino said.

“In this down economy, the farm economy has been the one” that has remained strong, Mautino added.

Bradley and Mautino both said their work together resulted in the quick resolution to the issue.

Another important agriculture issue was dealt with hours before the deadline for committee passage.

The Illinois Farm Bureau, Illinois Pork Producers Association (IPPA), and the Illinois Beef Association together contacted members of the environment committees in the Senate and House to oppose higher fees for livestock permits, said Mark Gebhards, IFB director of governmental

affairs and commodities.

Two bills, SB 2209 and HB 3504, proposed to set fees for National Pollution Discharge Elimination System permits that are required for Concentrated Animal Feeding Operations at $1,800 each. However, neither bill was called for a vote in its respective committee. SB 2209 was held in the Senate Environment Committee and HB 3504 was held in House Environment and Energy Committee.

Both committees, at the request of the legislation supporters, took testimony from individuals representing the environmental community, the Illinois Environmental Protection Agency (IEPA), and the agriculture sector. Jim Kaitschuk, IPPA executive director, spoke on behalf of the agricultural sector.

“As farmers are well aware, we have been trying to get a handle for a number of years on who actually may have to apply

for a permit,” Kaitschuk said.

“We still have no clear answers on that nor have we had specific discussions with IEPA on the overall costs of the program until the week prior to these hearings,” he said.

“We continue — as we have traditionally — to be willing to engage in discussions with IEPA on how to implement the programs and how to address the concerns raised by USEPA. To set fees prior to that seems premature.”

PROMOTING FARMERS’ CONTRIBUTION, IMAGE

Jolene Neuhauser, Woodford County Farm Bureau manager, displays a Peoria billboard, one of five that promote farming and farmers to motorists. The message is part of the Illinois farmer image campaign, and the billboards are a joint project sponsored by the Farm Bureaus in Fulton, Peoria, Tazewell, and Woodford counties. Three more images will be displayed between March and the end of the year. (Photo by Cyndi Cook)

Leaders try to divine the farm bill mood Periodicals: Time Valued

BY MARTIN ROSS FarmWeek

Illinois farm groups converged on Capitol Hill last week seeking to push crucial bilateral trade agreements, pull the reins on growing federal regulatory controls, and explore the extent of budget pressures on future producer programs.

Meeting with Illinois Farm Bureau Leaders to Washington and state corn and soybean groups, Springfield Democrat U.S. Sen. Dick Durbin argued “it’s impossible to defend what we’re paying out at this time” in direct payments. Durbin labeled them “a high-profile target” for budget-conscious colleagues.

The budget — i.e., deficit reduction — is “the overriding issue across everything that’s going to come up,” Illinois Corn Growers Association (ICGA) President Jim Reed told

FarmWeek. “Everything seems to be on the table and being discussed,” from energy incentives and transportation to Social Security and other entitlements, he said.

Durbin argued “we have to put everything on the table — not just farm programs, but everything.” The senator served on a White House-charged Commission on Fiscal Responsibility and Reform that last fall recommended direct payment cuts.

The move to shave program spending began with House debate over the fiscal 2011 continuing budget resolution, as lawmakers defeated proposals to limit cumulative annual program payments to $250,000 per individual or entity and to further limit income eligibility for payments.

The next step is House Budget Chairman Paul Ryan’s (R-Wis.) April fiscal 2012 bud-

FarmWeek on the web: FarmWeekNow.com

get, which is slated to include entitlement reform. According to an aide to Urbana Republican House Ag Committee member Tim Johnson, the Ryan plan should prove “a big determinant” in 2012 farm bill direction.

“The take-away is, we have to be careful as an ag organization that what we ask for can be scored (for budget impact) within the constraints of the budget reconciliation talks that are going on out here,” IFB state director and Leader to Washington participant Chris Hausman said.

“After meeting with Sen. Durbin, it was pretty evident direct payments are going to be hard to defend going forward. We’ll have to be able to defend how we can continue to have direct payments as part of a total safety See Leaders, page 4

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

FarmWeek Page 2 Monday, March 21, 2011

GOVERNMENT

Quick Takes INTERPRETATION ‘RIDICULOUS’? — Joseph White works with and helps out his father. But to label the Elburn producer his father’s for-hire hauler is ridiculous, Illinois Farm Bureau Leaders to Washington told congressional delegates last week.

Under the Illinois Department of Transportation’s (IDOT) interpretation that farmers under crop-share arrangements would be regulated as for-hire carriers, “I would be out of compliance if I haul his grain,” White told an aide to House Transportation and Infrastructure Committee member Dan Lipinski, a Chicago Democrat.

“I can run my truck cheaper than I can pay someone to do it,” White added. Under IDOT’s interpretation — reportedly, a unique state view of the federal law — he estimates his costs would nearly double to buy the required commercial plates, while his insurance rates could triple.

Cambridge Leader Alan Lyman argued producers “are going to have to haul to pay for the plates” and thus compete with — and reduce income for — commercial truckers.

DUELING STATE BUDGET NUMBERS –Plenty of state budget numbers are circulating in Springfield, and it’s no surprise that the numbers don’t agree.

Last week, the Illinois Senate released its budget of $34.3 billion for fiscal year 2012, based on information from the Commission on Government Forecasting and Accountability, according to Illinois Statehouse News.

Gov. Pat Quinn proposed a budget of $33.9 billion.

The lowest budget project belongs to the Illinois House of Representatives, which has projected a $33.2 billion budget.

ALL-PLANT PEPSI BOTTLE COMING — PepsiCo Inc. recently unveiled a bottle made entirely of plant material, including switchgrass, pine bark, corn husks, and other materials. Ultimately, Pepsi also plans to use orange peels, oat hulls, potato scraps, and other leftovers from its food businesses.

The new bottle looks, feels, and protects the beverage inside exactly the same as its existing bottles, according to Rocco Papalia, senior vice president of advanced research at PepsiCo. Papalia said it would be the first bottle made entirely of plant-based materials.

PepsiCo plans to test the new bottle next year with a few hundred thousand bottles. Once the company is sure it can successfully produce the bottle at that scale, it will convert entirely to plant-based plastic bottles, replacing petroleum-based plastic bottles, according to executives.

(ISSN0197-6680) Vol. 39 No. 12

March 21, 2011

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Federal, state transportation officials to meet about ‘for-hire’ interpretation

BY KAY SHIPMAN FarmWeek

Officials with the U.S. Department of Transportation (DOT) and the Illinois Department of Transportation (IDOT) plan to meet the week of March 28 to discuss a new interpretation of federal regulations, according to Adam Nielsen, Illinois Farm Bureau director of national legislation.

Recently DOT interpreted federal transportation regulations to mean farmers who truck their landlords’ share of grain would be considered “for-hire carriers” and would no longer qualify for an agricultural exemption from more stringent rules. This means they would need to obtain a commercial driver’s license (CDL) and follow drug and alcohol screening and testing rules.

“As we have checked with other neighboring state Farm Bureaus, we are discovering that the State of Illinois could be the only state -— certainly the only one in the Midwest -— that has chosen to interpret “for-hire” in this way,”

Nielsen said. “We have accepted the state administrator’s offer to meet soon and are pleased that some Congressional offices have told us that they share our concerns about this situation and are more than willing to assist us, if needed.”

“FMCSA (Federal Motor Carrier Safety Administration) looks forward to meeting with the Illinois Department of Transportation and the Illinois Farm Bureau to discuss the concerns of the agricultural community,” Candice Tolliver, FMCSA’s director of communications, told FarmWeek. “Safety is our top priority, and we will work closely with our Illinois state partners to ensure a clear and consistent enforcement of the agency’s safety standards.”

The new interpretation would impact farmers who have crop-share leases, but would not impact those who cash rent farmland.

IFB President Philip Nelson and IFB staff earlier raised concerns with Marlise Streitmatter, DOT deputy chief of staff, and Anne Ferro, federal motor carrier safety administrator.

Are transportation dreams paved with inadequate funds?

BY MARTIN ROSS FarmWeek

A crucial source of infrastructure funding could be running on fumes by 2013 if lawmakers can’t agree on a system overhaul, a Washington transportation specialist warns.

The Highway Trust Fund, which is supported by fuel taxes and helps pay for U.S. highway/transit projects, should remain solvent through September 2012, according to the U.S. Department of Transportation. Transportation Secretary Ray LaHood told a Senate panel the trust fund is healthy enough to support existing and currently planned programs.

But the fund is solvent thanks to a $34.5-billion infusion of general budget funds over the past few years, American Association of State Highway and Transportation Officials (AASHTO) program management director Jack Basso advised.

Last week, U.S. House Transportation Committee Chairman John Mica (R-Fla.) conducted a Florida field hearing to gather “innovative ideas” for long-term reauthorization of federal highway programs.

The highway fund nearly ran dry in 2008, and the economic downturn and introduction of more fuel-efficient vehicles have reduced fuel tax revenues.

Nationwide revenues for

2011 are projected at $34 billion, but Basso notes “the gap between what’s coming in and what’s going out remains pretty dramatic.”

The Congressional Budget Office (CBO) projects the trust fund highway account will be running a $6 billion deficit by fiscal 2013, at current federal program levels, and from there, “the deficits get bigger and bigger,” he warned.

“We’re spending more and have been, consistently, than we’re taking in,” Basso said.

“One of the reasons we’re still afloat is the fact that general fund money went in. I don’t anticipate seeing any more going in any time soon.

“The CBO said, ‘You guys are going to make it through (fiscal year) 2011 at current levels, assuming that’s what Congress settles on. You may even make it through 2012 or edge toward the end of it. But in 2013, you’re in the tank hugely in terms of the trust fund deficit.’

“Since the trust fund (legally) can’t run a deficit, that means big program cuts.”

The president’s fiscal 2012 budget plan outlines a roughly $550 billion, six-year transportation program, and Mica suggests a highway bill could be out of the House by fall.

But while the White House offers a “great wish list,” Basso argues “we’re $220 billion in

revenues short” to meet proposed long-term infrastructure needs.

LaHood reiterated resistance to increased fuel taxes at an AASHTO conference this month.

Basso nonetheless noted a glimmer of hope for support

‘We’re spending more and have been, consistentl y, t h a n w e ’ r e taking in.’

— Jack Basso transportation industry official

of transportation upgrades.

The House’s recent fiscal 2011 continuing budget resolution included billions for planned highway/transit projects — projects which escaped severe cuts under an accompanying budget “rescission” package.

“As we start up the construction season, I’m glad we don’t have massive uncertainty,” Basso said.

“But it doesn’t solve the 800-pound gorilla in the room — where we’re going to get the money. Right now, it seems Congress is in absolutely no mood to hear about raising taxes.”

Page 3 Monday, March 21, 2011 FarmWeek

TRADE

IFB members see need for Panama, Colombia FTAs

BY CHRIS MAGNUSON

Illinois farmers this month saw first hand the impact of Latin American trade on the economies of both North and South America during the Illinois Farm Bureau Panama-Colombia Market Study Tour.

U.S. Grains Council Regional Director Kurt Shultz emphasized the importance of Congress passing the U.S.-Colombia Free Trade Agreement (FTA) in regaining U.S. ag exports.

“Our trade with Panama and Colombia is complimentary,” said Shultz. “Colombia imports corn, soybeans, soybean meal, wheat, and cotton.

They export coffee, cut flowers, bananas, and sugar.”

Colombia imports more grain than any other nation in the region outside of Mexico.

In 2008, the U.S. had 70 percent of Colombia’s grain import market. By 2009 it had dropped to 38 percent, and by 2010 it was only 27 percent.

While the U.S. has a transportation advantage according to Cargill and ADM representatives, the lack of a signed FTA means Mercosur countries have a tariff advantage over U.S. grain. Mercosur is the common market formed by the South American countries of Argentina, Brazil, Paraguay, Uruguay, and Chile. Each year Mercosur nations take a bigger bite out of U.S. ag exports and by 2014 Mercosur tariffs go to zero.

U.S. market share for wheat, for example, by August is expected to drop when Colombia enters into a FTA with Canada.

Panama and Colombia have pro-business governments and have been long-time allies of the United States. This makes the failure of the U.S. to consider the FTAs even more frustrating to Colombian officials.

“The United States has been our most important friend and ally,” said Senior Advisor to the Minister of Agriculture and Chief Ag Negotiator Andres Espinosa. “You are losing market share fast and you will lose almost everything if you don’t approve the FTA.” Espinosa went on to tell the group, “This will hurt Illinois, because corn is the leading ag export.” U.S. corn exports to Colombia fell from $600 million in 2008 to $200 million in 2009.

Quick facts about Colombia • Population: 44.9 million • Area: the size of Texas and California combined • Major ag exports: coffee, cut flowers, and bananas • Major imports: corn, soybeans and soybean meal, wheat, cotton • Per capita gross domestic product: $4,964. Agriculture makes up 18 percent of the labor force, other key industries include textiles, clothing, and gold, coal, and emerald mining.

• Energy: All cars in 2012 must have flex-fuel capabilities.

Ethanol in Colombia is made from sugar cane and biodiesel from palm oil.

Quick facts about Panama • Government: described as a pro-business democracy • Population: 3.3 million and growing at an annual rate of 1.5 percent • Current unemployment: 4.7 percent • Gross domestic product: $27.2 billion with an annual growth rate of 7.3 percent • Top U.S. imports: corn, $70 million; soy meal, $48 million; wheat, $20 million; and snacks and processed foods, $66 million. Imports are expected to grow if the U.S. passes a free trade agreement with Panama. Currently, there is an average 30 percent import tariff on U.S. ag goods.

Colombia is the 24th largest export market for the state of Illinois at $271 million. Illinoisbased equipment manufacturers also have a lot at stake.

Machinery currently amounts to 28 percent of Illinois products exported to Colombia totaling $76 million.

The U.S., instead, has turned its back on Colombia for domestic political reasons according to Espinosa. He feels U.S. labor leaders have continued to oppose the agreement despite significant improvements in human rights and labor provisions. MST participants were told by presenters that the FTA with the U.S. includes labor and environmental requirements.

The FTA is the best way possible for the U.S. to incentivize better labor and environmental performance by Colombia, according to experts meeting with the study tour.

Chris Magnuson, IFB executive director of operations, news and communications, accompanied the Market Study Tour group to Panama and Colombia.

Illinois Farm Bureau members tour the presidential square in Bogota, Colombia last week during the IFB Panama-Colombia Market Study Tour. Those pictured left to right are Randy Anderson (holding video camera), the group’s tour guide, Norbert Soltwedel, David Headley, John Howard, and David Meiss, IFB District 7 director from Gridley. (Photo by Chris Magnuson)

Leverage, export/labor facts brought to bear on trade agreements

BY MARTIN ROSS FarmWeek

Freshman U.S. Rep. Bobby Schilling anticipates a “heavy push” for approval of South Korea, Panama, and Colombia free trade agreements (FTAs) in coming weeks, noting growing House Democrat support for job creation through free trade.

President Obama is expected in April to submit the Korea FTA for a vote, but to date the president has offered little push for Panama or Colombia agreements. Republican senators last week pressed Obama to send Congress all three agreements at the same time, threatening otherwise to block his nominations for commerce secretary and other key posts.

Schilling, a Colona Republican who defeated FTA critic Phil Hare last November, last week told visiting Illinois Farm Bureau Leaders to Washington he would help “lay the hammer down” for FTA passage among Illinois colleagues.

The former union steward, insurance salesman, and East Moline pizzeria owner cited U.S. loss particularly of Colombian ag markets, arguing that “when you lose a customer, you try to get him back.”

“This is something I believe Democrats and Republicans both are coming around to — a lot of the Democrats are seeing how free trade agreements do work, and in a positive way,” Schilling told FarmWeek.

“I continue to give people who are anti-trade the Caterpillar example. In Decatur, they make these big mining trucks: They employ about 3,000 people, and about 80 percent of those trucks ship outside of the U.S. These free trade agreements are a golden opportunity for Illinois, because otherwise, we’re going to get behind.”

Schilling believes FTAs will “fly right through” the House.

Winning even a few more Senate Democrats should help assure final passage, he said.

Springfield Democrat Sen. Dick Durbin cited U.S. trade surpluses with existing FTA partners, but told the Illinois farmers, “I can’t tell you I’m definitely going to vote for or against (current agreements).”

An aide to Rep. Dan Lipinski, a Chicago Democrat, said Lipinski must decide “one, are they fair trade agreements and, two, are they good for America?”

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Republican Orrin Hatch (R-Utah) agree on the need for the three FTAs. Baucus committee aide Michael Smart told IFB Leaders “I think we’re getting pretty close.”

Hatch committee staffer David Johanson said FTA delays are resulting in loss of potential sale of U.S. equipment that could be used in ongoing Panama Canal expansion, and are risking further U.S. loss of Latin American corn/soybean market share to Brazil and Argentina.

The U.S. actually enjoys a transportation cost advantage vs. its South American competitors, which must move exports even to Colombia by sea. However, while IFB senior commodities director and Panama-Colombia Market Study Tour leader Tamara Nelsen reported Colombian officials prefer U.S. corn quality, current tariffs on U.S. grain have given Brazil and Argentina a significant price edge, even in the Panama market.

Further, under South Korea’s trade agreement with the European Union (EU), set to kick in this summer, the EU potentially will be able to “undercut us on a wide variety of products,” including pork and beef, Johanson said.

Baucus aide Smart noted Panama “has done everything it was supposed to do” to secure FTA support, enacting key labor and tax reforms. He said the U.S. and Colombia have reached “very carefully negotiated” FTA labor provisions aimed at stemming anti-union violence.

In 2007, Congress agreed to address Democrat-led labor concerns in FTA negotiations. Smart noted Colombia’s trade agreements with the EU and Canada include no such labor provisions, and maintained continued U.S. union opposition to the Colombia FTA “makes no sense if you’re a labor advocate.”

“Changes were agreed to,” Johanson said. “Being asked to do more on labor at this point isn’t going to get traction on the Republican side.”

FarmWeek Page 4 Monday, March 21, 2011

GOVERNMENT

1099 requirement ‘unpopular’ but hard to shake

BY MARTIN ROSS FarmWeek

New 1099 tax reporting requirements are unpopular on both sides of Capitol Hill — even the president doesn’t like them. Producers fear pending requirements could spur a rural ripple effect of higher prices and reduced services.

But getting rid of the 1099 dilemma won’t be easy, given Congress’ current “pay-as-you-go” budget environment, American Farm Bureau Federa-

tion budget/tax specialist Pat Wolff last week told Illinois Farm Bureau Leaders to Washington.

Under new health care law, businesses beginning next year would be required to submit 1099 paperwork to every vendor with which they purchase at least $600 in goods and services.

Both the House and the Senate have voted to repeal new provisions, and President Obama has conceded the burden they would create.

The hitch: New requirements

Illinois Farm Bureau Leaders to Washington last week met with Illinois’ new freshmen members of the U.S. House Agriculture Committee. Above, Winfield Republican Rep. Randy Hultgren, second from left, heads to an ag committee hearing flanked from left by Cambridge Leader Alan Lyman, Geneseo’s James Ufkin, and Elburn’s Joseph White. Below, Colona Republican Rep. Bobby Schilling, center, meets in the capitol Hill Visitors Center cafeteria with IFB National legislative Director Adam Nielsen, left, and, from left, New Canton’s Bryan Koeller, Pekin’s Frederick Meyer, and Canton’s William Carlberg. (Photos by Martin Ross)

Leaders Continued from page 1 net approach, whether that includes crop insurance, enhanced insurance, and/or an ACRE (average crop revenue election) program.”

Reed said direct payments “are viewed by many different people in different ways,” noting their creation as a shift from crop set-asides. Direct payments now are “very much a target,” and ICGA is open to discussing “how we might transition from that toward a stronger safety net,” he said.

While skeptical of direct payments, Durbin stressed “risk management, I understand,” pledging to help ensure a producer safety net remains in place.

Hausman found his meeting with Congressional Budget Office (CBO) analysts especially “eye-opening” (details in the next FarmWeek). CBO’s Jim Langley, who will help score the budget impact of commodity programs and calculate an ag “baseline” for the next farm bill, stressed budget cuts “are not our call,” but noted CBO‘s 10-year program projections will target “the amount of money we have to spend.”

Early projections suggest the baseline for annual farm and related programs could fall in the $7 billion range.

Highland Park Republican Sen. Mark Kirk concurred with Durbin’s sense of budget urgency, but offered farmers what he called “some bad news and some good news” — Across-the-board cuts are inevitable, but they likely will be “more broad and therefore thinner.” A 10-20 percent cut from current program funding may prove “as bad as it’s going to get,” he said.

Hausman conceded “we’re going to have to take our share of cuts.” “We don’t want to be disproportionately cut vs. other programs — we’re willing to take our share, but don’t try to balance it on our back,” he nonetheless said.

reportedly would generate $22 billion in federal revenues over a nine-year period, in large part based on the assumption retailers and service providers would file taxes on more income knowing 1099s were on record.

While 1099 is unpopular, any tax reform today must be “revenue neutral,” requiring a hike in another tax or corresponding program cuts to offset “lost” revenue.

That leaves 1099 repeal in limbo until lawmakers can devise an acceptable “pay-for,” Wolff said.

Forthcoming 1099 requirements pose a threat on multiple fronts, according to Leaders to Washington and Washington County Farm Bureau President Gale Koelling. His county Farm Bureau board includes three accountants, all concerned about the impact of potential 2012 requirements.

“According to (the accountants), it will make it almost impossible for them to get all their tax work done for everyone — all they’ll be doing is sending out and collecting 1099s,” Koelling said.

“The bookwork part of this would be a disaster. I think we’ll have a hard time getting enough people to do our taxes.

It’s also going to raise what accountants charge farmers to do their taxes.

“I buy farm inputs from a lot of dif-

ferent places, even Wal-Mart. But if Wal-Mart gets a 1099 from everybody in the nation — well, they can only handle so many. I’m afraid it will also put an increased bookkeeping burden on (equipment dealer) parts and labor.

It’ll probably raise prices.”

The House 1099 offset would cut spending under the new health care program, while the Democrat-controlled Senate charts cuts in unused, previously appropriated federal funds. Neither plan is agreeable to the White House, and Senate Finance Chairman Max Baucus (D-Mont.) advised “there is still a difference of opinion on the offsets.”

Senate Majority Leader Harry Reid (D-Nev.) last week reported Democrats would offer a different way to pay for 1099 repeal, tentatively through small business legislation. However, finding an offset that doesn’t pose an undue new burden on taxpayers or businesses could be tricky.

“When you’re talking about coming up with a revenue offset to pay for another tax cut, you are talking about increasing taxes on someone else,” Wolff told FarmWeek. “Nobody wants their taxes increased, and coming up with that magical idea is hard to do. We have to be careful that the offset they pick isn’t worse than what we have.”

Bipartisan lock push on; river funding the problem Illinois support for commercial river upgrades is strong on Capitol Hill. Paying for them is the challenge, lawmakers told Illinois Farm Bureau Leaders to Washington last week.

After meeting with Illinois farmers, Springfield Democrat U.S. Sen. Dick Durbin pushed funding for expansion of outdated Upper Mississippi-Illinois River locks in a letter to the Senate Committee on Environment and Public Works. Congress has authorized but failed to fund new 1,200-foot locks at seven locations.

Durbin told committee leaders “shipping via barge keeps exports competitive and reduces transportation costs.” But he stressed the lock system built 70 years ago “is in desperate need of modernization.” In fact, 1,200-foot barge tows must be broken apart to pass through each lock, slowing freight movement.

Freshman Republican Bobby Schilling was among Illinois U.S. House members who shared a zeal for lock modernization, as well as for highway upgrades. Infrastructure improvement “is not Democrat or Republican — it’s red, white, and blue,” the recently elected Rock Island-area lawmaker argued.

Dale Roth, business representative with the Carpenters‘ District Council of Greater St. Louis and Vicinity, joined growers to lobby for lock construction that would provide hundreds of jobs. His union’s annual regional workload has fallen from an estimated 25 million man-hours in 2003-04 to a current 11 million annual man-hours, and Roth cited 30 percent unemployment in the area construction sector.

“It’s not only those jobs — it’s the jobs that are created by the industry that

uses that river for transportation or whatever,” Roth stressed. “If we don’t spend some time and money in rebuilding that infrastructure, we could lose those jobs.”

Durbin nonetheless warned that “in this context of cutting budgets,” the U.S. Army Corps of Engineers faces “pretty substantial cuts” in existing funds.

“They’re not entertaining new projects at all,” the senator said.

He suggested new fees may be needed to fund locks. The shipping industry already supports an increase in fuel taxes to replenish the Inland Waterways Trust Fund, which would underwrite 50 percent of lock upgrade costs.

Durbin’s Republican colleague, Sen. Mark Kirk of Highland Park, charts a more ambitious, purportedly budgetconscious infrastructure plan.

Kirk warned transportation reauthorization would be “a pretty tough bill to handle next year,” and suggested Congress explore new private sector partnerships in the vein of President Lincoln’s Transcontinental Railway Act, one of the U.S.’ largest infrastructure undertakings funded without public money.

Meanwhile, Durbin recognized ongoing challenges in keeping Chicago-area locks open amid Michigan-driven concerns about encroachment of the invasive Asian carp into Lake Michigan.

He noted Republican budget proposals to cut funding for electronic barriers used to prevent carp from entering the Great Lakes. The monthly cost of electricity needed to operate barriers alone runs in the mid-five figures.

“We have no evidence of that carp in Lake Michigan,” Durbin told IFB Leaders. — Martin Ross

Page 5 Monday, March 21, 2011 FarmWeek

MARKETS

New EIU power plant potential market for new biomass crops Biomass Working Group taking steps

BY KAY SHIPMAN FarmWeek

A stately brick structure with arching windows near Eastern Illinois University’s Charleston campus represents a future market for home-grown biomass fuel.

The state-of-the-art renewable energy plant and the scale of the potential market were clear for members of the Illinois Biomass Working Group who toured the facility last week. In fact, the tour proved so popular that demand outstripped availability, and future tours will be arranged.

“We’re very interested in developing research around other alternative fuels. That’s where the biomass group will partner with us,” said Gary Reed, EIU director of facilities planning and management.

EIU is installing two gasifiers in the new plant that will provide all the steam heat and hot water for all the campus buildings. The university also uses steam for cooking. The plant, which will be commissioned this summer, along with other conservation energy measures is part of an $80-million energy project.

Current plans are to burn wood chips, but EIU is committed to using other biomass fuel — be it corn stover, miscanthus, or some other biomass crop, said Paul McCann, EIU treasurer.

IBWG members ogled the plant’s massive room where a 10day supply of fuel will be stored. The university also has two back-up fuel sources, fuel oil and natural gas, in case of emergency problems with the wood-chip supply.

EIU’s plant is one of several bright spots on the biomass horizon, according to Fred Iutzi with Western Illinois University’s Illinois Institute for Rural Affairs.

“We may be closer to having a biomass economy in Illinois if we can network these things together,” Iutzi told the group of farmers, researchers, businessmen, and government officials.

IBWG plans to track biomass facility projects and to connect stakeholders to government policy development, Iutzi noted.

That input includes staff with Lt. Gov. Sheila Simon, who was represented by Christina Rogers, policy adviser for rural affairs.

Efforts on permitting issues are progressing, Ted Funk, University of Illinois agricultural engineering professor, reported.

An IBWG committee is working on a biomass facility permit “roadmap,” Funk said.

The group also is “moving toward more of a web presence with information to help new biomass suppliers, biomass conversion facilities, and anyone interested in biomass fuel,” Funk added.

Communication efforts also are moving forward with a new website {www.illinoisbiomass.org}, reported the U of I’s Natalie Bosecker and WIU’s Erin Orwig.

“This is a work in progress, and we encourage your feedback,” Bosecker said.

Upper photo: A tour group is dwarfed by the biomass storage area for Eastern Illinois University’s new renewable energy plant in Charleston. The storage area will hold a 10-day supply of biomass fuel, which will be wood chips at first. The university hopes to burn locally grown biomass crops in the future.

Left photo: A clock tower, brick exterior, and large windows present an unusual power-plant façade at Eastern Illinois University, Charleston. The plant will be the first at a Midwestern university to run entirely on biomass fuel when it becomes operational in June.

(Photos by Kay Shipman)

Pork producers provide assistance to Japan Attorney General assesses U.S. pork producers last the U.S. meat industry in Japan export customer for U.S. pork. penalties for ethanol plant week partnered with the U.S. from its office in Tokyo, will In 2010, Japan purchased $1.6 Meat Export Federation (USMEF) to provide pork for victims of the massive earthquake and tsunami that struck northeastern sections of Japan on March 11.

Estimates suggest more than a half million Japanese residents are without adequate food and shelter. Food shortages are expected to last into the summer months.

On behalf of U.S. pork producers and importers, the National Pork Board allocated $100,000 from the pork checkoff to provide pork products and to help get them distributed to those in need in Japan, said Conley Nelson, a pork producer from Iowa and a member of the National Pork Board.

USMEF, which represents

work with U.S. pork packers and others who have established distribution networks in Japan to make sure the food gets to those who need it.

The goal of the outreach program is to ensure that food requiring little or no preparation — such as pre-made bento (lunch) boxes — can be provided to people who have been displaced.

“Our hearts go out to the Japanese people who have suffered from this terrible natural disaster,” said Nelson.

The United States and Japan have a long-standing relationship involving pigs and pork. The pork checkoff has promoted pork in Japan for many years and has built a loyal customer base. In recent years, Japan has been the top

billion of U.S. pork.

A little more than 50 years ago, Japan was hit by two typhoons and lost much of its agricultural infrastructure in the disaster.

A U.S. Air Force sergeant from Iowa, who was serving in Tokyo at the time, worked with the U.S. embassy in Tokyo to arrange for some Iowa hogs to be sent to Japan to help the Japanese rebuild their hog industry.

To this day, much of the pork raised in Japan has genetic links to those Iowa pigs.

Last summer, several Iowa pork producers were part of a group that visited Japan to celebrate the 50th anniversary of what has become known as the Iowa Hog Lift.

Attorney General Lisa Madigan announced last week the owner of Riverland Biofuels, near Canton, has agreed to pay a $15,000 civil penalty and to reimburse the state nearly $3,000 for wildlife and fish that were killed at the ethanol plant last year.

Aventine Renewable Energy Holdings Inc., Pekin, bought the facility in August 2010 from New CIE Energy OPCO, LLC, which was named a codefendant in an April 2010 case alleging water pollution violations. Those allegations remain pending against co-defendant, The Andersons Inc., a grain facility adjacent to Riverland and the exclusive supplier of corn for the ethanol plant.

In March 2010, the Illinois Environmental Protection

Agency (IEPA) investigated a complaint about improper discharges from Riverland Biofuels and the Andersons Inc. Both businesses improperly allowed wastewater to drain into two lakes used to store stormwater and waste, according to the attorney general. At the time, Riverland temporarily had ceased plant operations.

IEPA found dead fish and dead or dying turtles in and near one of the lakes.

Under agreement filed in Fulton County Circuit Court, Aventine is responsible for restoring the lakes at the plant and for the proper disposal of wastewater currently in tanks on the plant site. The violations alleged against The Andersons Inc. are pending and were not affected by the settlement.

FarmWeek Page 6 Monday, March 21, 2011

LAND VALUES

ISPFMRA: Land values higher, more variable in 2010 Farmers remain majority of buyers

BY DANIEL GRANT FarmWeek

Illinois farmland values generally soared by an average of about 15 percent in 2010, based on a survey released last week.

The Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) in its farmland values and lease trends survey found all categories of land in all regions of the state increased last year, with some ground in Southern Illinois up as much as 38 percent.

The only exception to the trend last year was some average/fair ground in Northern Illi-

nois, some of which declined in value by as much as 9 percent.

“Almost every county in the state had a farm sale that hit an all-time high for the area, and that’s still going on,” said Don McCabe of Don McCabe Soy Capital Ag Services in Bourbonnais, who was chairman of the ISPFMRA survey.

The increase in farmland prices was credited in large part to the run-up in commodity prices the second half of the year. Sixty percent of

FarmWeekNow.com Listen to Daniel Grant’s interview on Illinois land values at FarmWeekNow.com.

farmland sold last year was purchased by farmers.

“The last three months of 2010 we saw a spike in the number of sales (which were up 20 to 30 percent in some regions) with higher prices,” McCabe said.

Cash crop prices from March 2010 to March 2011 increased 112 percent for corn and 46 percent for beans.

The market also was supported by investors, who were the buyers in 28 percent of the land sales last year. The

remaining 12 percent of Illinois farmland sold last year was purchased by institutions or other buyers.

“Agriculture is financially sound,” McCabe said. “Farmland values and lease trends (as a result) are on the rise.”

But, while land prices generally increased last year, so did the variability of prices.

Sale prices ranged from $3,000 per acre to $9,000-plus per acre. The average price broken down by soil productivity (see graphic) ranged from $4,310 per acre for fair land to $8,130 per acre for excellent ground.

“There was more variation (in 2010) than we’ve seen in past years,” McCabe said. “Not every farm is of the same quality.”

Categories of land that generally had softer sales included land for development and recreational ground. The turnover of recreational ground last year was down about 50 percent, according to the survey.

Auctions generally flushed out some of the highest prices for farm ground last year as

some induced fierce competition. Auctions on average generated $800 per acre more than private sales, McCabe reported.

Farmland with wind turbines, which can crank out about $7,500 apiece of extra income per year, also appreciated more than other farm ground.

ISPFMRA members believe there is little to no chance of a major price decline this year.

“If you’re trying to buy a farm or pass land to the next generation, not everybody is wildly excited about higher and higher land prices,” McCabe said.

When asked what the chances are this year of a bubble-burst (at least a 20 percent decline in farmland prices), 20 percent of ISPFMRA members believe there is no chance, 60 percent believe there is less than a 5 percent chance, and 20 percent believe the chance is less than 10 percent.

The top factors that could slow rising farmland prices include higher interest rates, higher inflation, and lower commodity prices.

Expanded farmdoc website to focus on new technology A new website called farmdocdaily will add new technology to the already popular farmdoc website, said University of Illinois agricultural economist Scott Irwin.

“We created the new farmdocFarmWeekNow.com daily site with an eye toward the technology people are increasTake a look at the new farmdocingly using to access informadaily website by going to tion and the desired format of FarmWeekNow.com. that information,” Irwin said.

At the new site {www.farmdocdaily.illinois.edu}, visitors can register to automatically receive posts by signing up as an e-mail or RSS subscriber.

Irwin said although the new site will incorporate blog technology, it is not going to be a blog in the conventional sense of the term.

“We think a daily newspaper is a better metaphor, hence, the name ‘farmdoc daily.’ There will be daily posts on the site with links to newsletters, podcasts, summaries of research reports, and announcements about new farmdoc tools and data updates,“ he said.

One significant feature on the new website is that users will be able to provide feedback. This will allow users to make comments that will provide other users with additional perspectives.

Irwin reinforced that the farmdoc site is not being changed or eliminated.

“The goal remains the same: to provide crop and livestock producers in the U.S. Corn Belt with round-the-clock access to integrated information and expertise so they can better manage their farm businesses,” he added.

Page 7 Monday, March 21, 2011 FarmWeek

PRODUCTION

Cash rents could rise; use of variable rent agreements doubles

BY DANIEL GRANT FarmWeek

Cash rental rates this year are expected to be significantly higher than in 2010 and could continue to climb in the future if farm returns remain strong, according to a statewide survey of farm managers and rural appraisers.

A survey conducted by the

Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) broke rental rates down by land class and divided those in thirds based on the price ranges of each lease.

And the survey found cash rents for the middle third of the leases are projected to rise in 2011 compared to 2010 by

Disasters in Japan disrupt ag trade The earthquake and subsequent tsunami that struck Japan this month devastated northeastern parts of the island nation in a matter of minutes.

But it could take weeks or even months for survivors to recover and eventually rebuild the economy of what is one of the top export destinations for a variety of U.S. ag products.

“Some ports in northern Japan, Kushiro, Hachinohe, Ishinomaki, and Kashima were hit by the tsunami,” said Tommy Hamamoto, U.S. Grains Council director in Japan.

“Some feed mills and livestock operations also were damaged.”

AgResource Co. of Chicago estimated the disasters may have reduced Japan’s grain warehousing ability by 15 to 20 percent.

And that could put a serious dent in U.S. grain exports near-term. Japan imports about a quarter of all U.S. corn that is sold on the world market.

Japan also is one of the top export destinations each year for U.S. beef and pork. In 2008, Japan reportedly purchased 22 percent of all U.S. pork exports.

“There likely will be a temporary interruption in the movement of ag commodities into Japan,” said Darrel Good, University of Illinois ag economist. “Maybe our year-ending stocks (of corn and beans) won’t be quite as tight as projected.”

The price of various commodities, including corn and crude oil, initially slipped in the wake of the disasters. The Dow Jones industrial average fell 150 points in one day last week due to the crisis surrounding the crippled Japanese nuclear power plant located near the epicenter of Darrel Good the disasters.

Japan reportedly is the third-largest consumer of oil in the world. The island nation imports about 4.4 million barrels of oil per day.

However, oil prices rebounded late last week and settled near $101 per barrel, due in part to expectations of demand growth when Japan rebuilds damaged or destroyed areas.

Crop prices also recovered some lost ground late last week.

“Near-term impacts will disrupt trade flows to and from Japan, resulting in lower U.S. exports of grains and oilseeds,” said Parr Rosson, AgriLife Extension ag economist who specializes in international trade. “Intermediate and long-term impacts will likely result in more U.S. exports as Japan rebuilds critical infrastructure and resumes food production.”

Many of Japan’s major ports are south of the affected area and could be up and running as early as this week, according to one analyst. — Daniel Grant

an average of about $37 per acre.

Specifically, cash rents for the middle-third of leases this year are projected to average $319 per acre for excellent ground (up from $268 in 2010), $271 for good ground (up Gary Schnitkey from $231 in 2010), $220 for average ground (up from $189 in 2010), and $183 for fair ground (up from $156 in 2010).

“Survey results indicate cash rents for 2011 increased dramatically over 2010 levels,” said Gary Schnitkey, University of Illinois Extension farm management specialist who also serves as secretary/treasurer of ISPFMRA. The main drivers of higher farm lease prices include stronger farm returns in 2010 compared to 2009 — that resulted from a run-up in commodity prices last fall — along with higher farm land values.

A survey of ISPFMRA members estimated farmland prices last year increased in the state by an average of about 15 percent.

Meanwhile, rental rates in some areas could continue to creep higher in the future.

Some rates for 2011 were set early last fall due to the rapid harvest and prior to the runup in crop prices.

“There’s a big range (in lease prices). And it’s gotten bigger over time,” Schnitkey said. “A lot of variability has to do with the relationship between landlords and tenants and when they set the rent.”

Cash rent averages for all land classes in all price categories are expected to range this year from $132 per acre to $357 per acre, according to the survey.

The highest lease prices are in Central Illinois, according to the National Agricultural Statistics Service Illinois field office (see graphic on page 6).

Nine counties in 2010 had an average cash rent of $200-plus per acre, led by Macon County with an average cash rent of $242 per acre.

On the flipside, the average cash rent in Pope County in 2010 was just $72 per acre.

The extreme variability in lease prices combined with volatility in the commodity markets and input prices has prompted more farmers/landowners to switch to variable cash rent arrangements.

“It’s hard to set cash rents in this environment,” Schnitkey noted.

The use of variable cash rents from 2010 to 2011 nearly doubled from 11 percent to 21 percent of all leases, respectively, he said.

The other forms of leases in use this year include 43 percent that are some form of crop share (either traditional or with supplemental rents or accounting), 28 percent traditional cash rent, and 8 percent custom farming, according to the ISPFMRA survey.

Copies of the 84-page ISPFMRA farmland values and lease trends report released last week can be ordered online at {www.ispfmra.org/land-values.html}.

Soybean groups pledge to work together The past is history as far as leaders of the American Soybean Association (ASA) and United Soybean Board (USB) are concerned.

ASA and USB last week unveiled a plan in which the two groups will work together and combine resources to better serve U.S. soybean growers.

The collaborative plan announced last week came about eight months after USDA’s Office of Inspector General declared it found “insufficient evidence” to support allegations made by ASA that USB had misused soybean checkoff dollars.

USDA’s investigation of USB, which concluded in late July of 2010, took about 18 months.

“In order to go forward, we agreed we’re not going to address anything in the past,” Marc Curtis, USB chairman, said last week during a teleconference.

Individuals from ASA, USB, state soybean associations, and qualified state soybean boards — known as the group of 16 or G16 — held meetings and last week announced recommendations that resulted from the new approach.

The G16 drew up a memorandum of understanding and a code of conduct for

Auction Calendar 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 Thurs., Mar. 24. 9:30 a.m. Farm machinery and miscellaneous. Ed and Boni Stoller, ROANOKE, IL. Schmidgall Auction Services. www.topauctions247.com/schmidgall Fri., Mar. 25. 10 a.m. Land Auction Bureau Co. Herbert Bialas, ORIN, IL. Espe Auctioneering. www.espeauctions.com

the groups to follow in the future.

“The health of our industry never has been better,” Curtis said. “ASA and USB (members) seek a collaborative effort to enhance their relationship and better serve soybean farmers.”

The new framework calls for the two organizations to enhance communications, conduct a leadership development program, and build a culture of trust and respect.

It also promotes a better understanding of the needs of soy customers beyond the elevator.

“It’s a pivotal year for our industry,” said Alan Kemper, president of ASA. “The memorandum of understanding is intended to form the basis of a more productive relationship.”

Ag groups likely will need to work together this year as the industry is threatened by increased regulations by the Environmental Protection Agency (EPA) along with federal and state budget cuts.

“Unnecessary regulations (proposed) by EPA threaten our farmers’ freedom to operate,” Kemper said.

The ASA board last week unanimously approved a motion to support the G16 recommendations. USB is expected to act on the agreement at its next board meeting in June. — Daniel Grant

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 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. McLean Co Land Auction. BLOOMINGTON, IL. Farmers National Co. www.farmersnational.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

FarmWeek Page 8 Monday, March 21, 2011

REGULATION

Lawmakers closer to blocking NPDES permits

BY MARTIN ROSS FarmWeek

Paul Schlegel is a part of America Farm Bureau Federation’s self-professed “gloomand-doom team,” charged with monitoring environmental,

energy, immigration, and other policies that impact — and sometimes depress — agriculture.

Schlegel nonetheless brought guarded optimism into his meeting with Illinois Farm

U.S. Sen. Dick Durbin, left, a Springfield Democrat, greets Vermilion County Illinois Farm Bureau Leader to Washington participant Michael Marron at the conclusion of Durbin’s meeting with IFB, Illinois Corn Growers Association, and Illinois Soybean Association representatives.

(Photo by Martin Ross)

Bureau Leaders to Washington last week, noting swift congressional movement to halt prospective new federal pesticide permits.

“I don’t want to get excited, but we’re cautiously hopeful,” Schlegel said a day before the House Transportation and Infrastructure Committee approved a bipartisan bill that clarifies the Federal Insecticide, Fungicide, and Rodenticide Act’s (FIFRA) sole authority over applications.

That’s key in heading off U.S. Environmental Protection Agency (EPA) “guidance” that could lead to the agency controlling water quality issues well beyond its Supreme Court-determined Clean Water Act (CWA) purview over commercially “navigable” waters, he said.

Following a federal court ruling identifying spray nozzle applications as a possible “point” source that could pollute water resources, EPA proposed National Pollutant Discharge Elimination System (NPDES) permits for selected

pesticide applications. Currently, permits would be limited to chemicals used in, near, or over water.

But new permits amount to “regulatory overreach and expense to the states” that must implement them, as well

‘I don’t think it was ever intended to call a spray boom a point source.’

— Chris Hausman IFB Leader to Washington

as groundwork for future ag pesticide regulation, Schlegel said. IFB Leader Mike Marron warns NPDES permits set “a dangerous precedent in terms of the balance of powers,” essentially usurping Congress’ intent with the CWA. “I don’t think it was ever intended to call a spray boom a point source,” Leader to Washington Chris Hausman said.

EPA’s permit scheme tentatively is effective April 9, though EPA Administrator Lisa Jackson has asked the court to delay that deadline.

The House permit prevention measure, co-sponsored by Rep. Bob Gibbs (R-Ohio), a

former Ohio Farm Bureau president, now moves to the House floor. Schlegel is buoyed by support among a broad range of lawmakers, including liberals such as Reps.

Barney Frank (D-Mass.) and Peter deFazio (D-Ore.).

FIFRA already requires farmers to follow EPAapproved pesticide label restrictions, and Schlegel stressed “we’re not trying to get out of any obligation that affects the environment.” “All we’re asking is that the law be implemented as it has been since 1972,” he argued.

He acknowledged Senate Environment Chairman Barbara Boxer (D-Calif.) likely will try to kill the bill in the Senate, or at least attempt to “extract something she wants in return.”

However, Senate Democrat leaders may view the measure as “something (they) can give to the moderates” — an important consideration with tighter Senate party margins.

As an Environment Committee member, Sen. Dick Durbin, a Springfield Democrat is “absolutely key” to shepherding the bill to the White House.

In a Capitol Hill meeting with Illinois growers, Durbin agreed permit requirements for individual applications are “impractical when you consider all the applications in our state.”

Appellate court rules EPA can’t require CWA permits for all livestock operations A federal court of appeals unanimously has ruled the Environmental Protection Agency (EPA) cannot require livestock farmers to apply for Clean Water Act (CWA) permits unless their farms actually discharge manure into U.S. waters.

The ruling was welcomed by the American Farm Bureau Federation (AFBF), National Pork Producers Council, and several other agriculture groups that filed suit against EPA in the U.S. Court of Appeals for the Fifth Circuit.

AFBF legal analysts are reviewing the ruling to determine how it will affect livestock farmers and ranchers, including those currently engaged in lawsuits with EPA. It’s uncertain at this time what EPA’s next steps will be now that major provisions of its Concentrated Animal Feeding Operations (CAFO) regulations issued in 2003 have been vacated by the court, according to AFBF. “For the second time, a U.S. Court of Appeals has ruled that EPA’s authority is limited by the Clean Water Act to jurisdiction over only actual discharges to navigable waters, not potential discharges,” said AFBF President Bob Stallman. “We are pleased that the federal courts have again reined in EPA’s unlawful regulation of livestock operations under the Clean Water Act.” In the ruling, issued March 15, the Fifth Circuit concluded, “The CWA provides a comprehensive liability scheme and the EPA’s attempt to supplement this scheme is in excess of its statutory authority.”

According to the ruling, non-discharging CAFOs do not need permits. In addition, CAFOs cannot face separate liability for “failure to apply” for permits, as EPA’s rule provided.

Instead, where a CAFO does not seek a permit, the CWA imposes liability only for discharges that occur from the CAFO without a permit.

Page 9 Monday, March 21, 2011 FarmWeek

EDUCATION

Ag ed live!

Webinar, interviews share the value of ag education

BY KAY SHIPMAN FarmWeek

Heartfelt anecdotes about agriculture education and ag literacy programs were punctuated with applause as Illinois’ first ag ed webinar went live online.

Susan “Susie” Morrison, deputy state superintendent and chief of staff with the Illinois State Board of Education, spoke as a parent of a junior high student as well as an educator.

Morrison said her eighthgrade daughter just registered to take a high school ag class next year. Her daughter had a great experience in an exploratory ag course, she added.

“She said out of all her classes, ag was the one class where she learned something new every day,” Morrison told ag educators and education supporters gathered at Lincoln Land Community College, Springfield.

“Ag ed in this state is a shining star ... an example of what can happen when adults in a school and adults in the community work together,” Morrison said.

The goal for the webinar and recorded one-on-one interviews is to provide input from a variety of individuals about the benefits of agriculture education programs, said Jay Runner, coordinator of the Facilitating Coordina-

ICMB, ISA provide additional funds to help IAITC fill the funding gap The Illinois Corn Marketing Board (ICMB) and Illinois Soybean Association (ISA) are providing a combined $130,000 in additional funds to help Illinois Agriculture in the Classroom (IAITC) fill the gap caused by the state’s financial woes.

“We feel like IAITC promotes what is involved with growing food,” said Doug Winter, an ISA board member from Mill Shoals. “A lot of students are four or five generations removed from the farm. They don’t know a lot about farming, especially in an urban area. (IAITC) provides good communication.”

ICMB believes IAITC “is an incredibly vital component of our education and outreach,” said Tricia Braid, ICMB communications director.

Included in the commodity groups’ additional contribution is a $50,000 collaboration commodity grant that may be used ‘We feel like for general program needs.

IAITC promotes “This is a unique opportuniwhat is involved ty for corn and soybean farmers to come together for with growing IAITC. We also challenge other food.’ groups that might be considering making a donation. We real— Doug Winter ize the funding couldn’t have ISA board member come at a better time,” said Amy Roady, ISA communications manager.

Given the state’s financial problems, funding for IAITC along with funding for other agricultural education programs has been delayed, said Jay Runner, coordinator of the Facilitating Coordination in Agricultural Education (FCAE).

“We’ve had to put a number of projects on hold. That includes IAITC, our professional development (program), and grants for post secondary students,” Runner explained.

ICMB’s Braid added: “When we became aware the state’s budget was limiting IAITC funding, we considered an additional gift to be a worthwhile investment in the future.”

The additional money helps support county AITC coordinators around the state and the expense to develop new lessons and educational materials, noted Susan Moore, director of the IAA Foundation.

“Illinois corn and soybean farmers are making a major impact on improving agricultural literacy by showing financial support for IAITC,” Moore said. — Kay Shipman

David Mouser, principal of Tri-Valley High School in Downs and chairman of the Illinois Leadership Council for Agricultural Education, addresses an audience and online viewers during a recent webinar on the educational benefits of agriculture education programs. The segments from the webinar and one-on-one interviews will be posted online as a resource for students, administrators, and lawmakers. (Photo by Kay Shipman)

tion in Agricultural Education (FCAE).

Recorded portions of the webinar along with interview excerpts will be posted in the future at {www.agricultural education.org}.

Runner envisioned the recorded information being useful to school administrators, legislators, students, parents, and others.

Ag educators tried the webinar as a new communication tool to reach across the state and beyond.

In addition to an audience gathered in a Lincoln Land classroom, about 15 schools

also logged onto the webinar, Runner noted.

The importance of ag education programs to students and local communities may have an important role as the state budget battle plays out. Ag educators, along with other educators, are facing delayed state payments.

FCAE has not received any payments for fiscal year 2011, which started July 1, and has been forced to delay several programs, including funds for Illinois Agriculture in the Classroom (see accompanying

story), Runner said.

For immediate budget expenditures, FCAE has been operating with a line of credit through Parkland Community College, but is “close to the credit limit,” Runner said.

Ag education offers valuable lessons for state lawmakers, according to recently retired state Sen. Brad Burzynski, who spoke in the webinar.

“I think the state as a whole would benefit if every legislator took an ag class,” Burzynski said to audience’s applause.

FarmWeek Page 10 Monday, March 21, 2011

EDUCATION

ExplorACES creates ag-citement Above: Ed Roy, a graduate student in ag and biological engineering at the University of Illinois, demonstrates an air cannon to students in an agriculture and pre-vet class at the Richland Technical Academy, during the recent ExplorACES. The two-day event gives high school students a closer look at the U of I’s College of Agricultural, Consumer, and Environmental Sciences (ACES). Upper right: U of I ACES stu-

dents conduct a food science demonstration. Lower right: Mike Hutjens, U of Illinois animal sciences professor emeritus, explains the digestion system of ruminants with help from Thornwood High School senior Nakil Heard, center, who holds a sheep rumen, and freshman Matthew Brooks, who holds a steer’s rumen.

(Photos by David Riecks and Joyce Knoblauch)

Two Illinois ag students among nation’s top 12 Thomas Marten, a Southern Illinois University student, and Gracie Weinzierl, an Illinois State University student, recently were selected as two of 12 of the nation’s top agricultural students for the 2011 International Collegiate Agricultural Leadership (I-CAL) Program.

Marten and Weinzierl were required to complete an application and answer numerous essay questions regarding their understanding and thoughts on international trade and marketing. They will travel to Panama and Colombia May 15–27 to study international grain marketing and trade and global agriculture.

They will visit different South American agricultural operations, including grain inspecting facilities, fruit and vegetable farms, livestock operations, and open-air grain, meat, and animal markets.

The tours are designed to help the students understand current international trade and cultural issues and gain awareness of how international markets for agricultural products operate.

The I-CAL program was developed as a partnership with the U.S. Grains Council and The Grains Foundation.

They continue this in partnership with the National FFA Organization.

Early-season pest control focus of grape workshop Illinois grape growers may attend Vineyard IPM: Early Season Pest Control starting at 1 p.m. April 2 in the Pittsfield Community Center, Pittsfield.

Speakers will focus on the decision-making process for early-season pest control in vineyards. Rick Weinzierl, University of Illinois department of crop sciences, and Elizabeth Wahle, U of I Extension, will discuss early-season pest control, including identification of early-season pests and critical timing for pesticide control.

The workshop is sponsored by Western Illinois Grape Producers Associated Cooperation, Illinois Grape Growers and Vintners Association (IGGVA), U of I Extension, and the Illinois Department of Agriculture, Registration fees will be collected at the door beginning at 12:30 p.m. The cost is $15 for individual IGGVA members or $20 per vineyard and non-IGGVA members.

For more details, contact Wahle at 618-692-9434, extension 21, or e-mail her at wahle@illinois.edu.

Page 11 Monday, March 21, 2011 FarmWeek

FarmWeek Page 12 Monday, March 21, 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 13 Monday, March 21, 2011 FarmWeek

FROM THE COUNTIES

A

dams — There will be an “On the Road” trucking seminar to discuss laws affecting farm trucks, farm equipment and drivers at 1 p.m. Tuesday, March 29, at John Wood Community College auditorium. Call the Farm Bureau office for reservations at 2227305.

HAMPAIGN — Farm Bureau will sponsor a “Trade and its Impact on Agriculture” meeting at 7 p.m.

Tuesday at the Farm Bureau auditorium. Tamara Nelsen, Illinois Farm Bureau senior director of commodities, will be the speaker. Call the Farm Bureau office at 352-5235 or visit the website at {www.ccfarmbureau.com} for more information.

FFINGHAM — The Farm Bureau Local Affairs Action Team is sponsoring a proper storage seminar at 7 p.m. Monday, March 28, at the Farm Bureau office.

Nancy Erickson, director of natural and environmental resources for Illinois Farm Bureau, will be the featured speaker. She will discuss the Spill Prevention, Control, and Countermeasures (SPCC) rule that governs oil and fuel storage for many businesses, including farms. There is no charge to attend, but reservations are appreciated. Contact the Farm Bureau office at 217342-2103 or e-mail ecfbmgr@consolidated.net by Friday.

ORD-IROQUOIS — Farm Bureau Foundation scholarship applications are due April 1. Contact the Farm Bureau office at 1-800424-0756 or fifb@sbcglobal.net for more information.

REENE — Farm Bureau will sponsor an “On the Road — Motor Vehicle Law for Farmers” program from 9 to 11 a.m. Wednesday, March 30, at the Greene County Extension office, Carrollton. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 217-942-6958

by Friday for reservations or more information.

ACKSON — Farm Bureau will sponsor a livestock outlook meeting at the Goreville Sale Barn at 6 p.m. Tuesday. Jeff Beasley will be the speaker. RSVP to the Farm Bureau office for a meal count.

• A market outlook meeting will be held at 8 a.m. Friday in the Pulaski-Alexander Farm Bureau conference room.

Dan Zwicker will be the speaker. RSVP to the Farm Bureau office for a count for breakfast.

• An equine saddle and tack fitting seminar will be held at

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6:30 p.m. Monday, March 28, at the Goreville Sale Barn.

Rick McKinney and Stephanie Speiser will be the speakers.

CDONOUGH –Farm Bureau is sponsoring an “On the Road Seminar — Motor Vehicle Law for Farmers” Monday, March 28, at the Spoon River College Community Outreach Center, Macomb. Kevin Rund, who has specialized in farm transportation issues for Illinois Farm Bureau for 30 years, will be the speaker. A pizza buffet will be served beginning at 6:15 p.m. with the meeting at 6:30 p.m. The seminar is free of charge. RSVP to 309-8373350 by Friday.

ONROE — Members are invited to a retirement open house for Sue Kunkel, administrative assistant, from 8 a.m. to 5 p.m.

Thursday, March 31, at the Farm Bureau office.

EORIA — The Family Portrait Program will be held Friday through Sunday in the Peoria County Farm Bureau auditorium.

• A Spring Health Screening Fair will be held from 7-11 a.m. Wednesday, March 30, in the Farm Bureau auditorium.

For a list of services, prices, and reservations, call Proctor Hospital at 689-8334 by Friday.

• Applications for five $1,000 scholarships from the Farm Bureau Foundation are due to the Farm Bureau office

by March 31. The scholarships will go toward the tuition of students enrolled in a twoyear college or four-year university pursuing an agriculturerelated degree.

ICHLAND — Farm Bureau will hold an open house for retiring manager Herman Ginder from 25:30 p.m. Thursday, March 31, at the Farm Bureau office.

Refreshments will be provided.

TARK — Farm Bureau will sponsor a trip to Circa 21 April 6 to see “Happy Days.” Cost is $80, with a $20 deposit due at sign-up and the remainder due on the day of the trip. Trip will include bus, show, and meal. The bus will leave the Farm Bureau office at 10 a.m. and return by 5 p.m. Call the Farm Bureau office at 286-7481 by Tuesday for reservations or more information.

AYNE — Farm Bureau is offering seven $500 scholarships to Wayne County youth majoring in an ag-related field of study in the fall 2011 semester. The application can be downloaded from the Farm Bureau website at {www.waynecfb.com}.

Applications are due March 31.

HITE — The Farm Bureau Young Leader

FARMERS, FRIENDS CELEBRATE AG WEEK

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Livingston County Farm Bureau Young Leaders, left to right Ryan Myers, Fairbury; Brad Schmidgall, Forrest; and Matt Mackinson, Pontiac; show little people, who literally depict the 155 people who are fed by one farmer. The Young Leaders Committee built the display for National Ag Week. FFA chapters in the county built the one-foot plywood people and painted them in their school colors. (Photo by Theresa Grant-Quick, Livingston County Farm Bureau manager)

Committee is offering a $500 scholarship to a White County student majoring in an agrelated field of study in the fall 2011 semester. The appli-

cation can be downloaded from the Farm Bureau website at {www.whitecfb.com}.

Applications are due March 31.

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

FarmWeek Page 14 Monday, March 21, 2011

PROFITABILITY

Is the fuse of inflation close to being lit?

Rosling’s 200 Countries, 200 years.” It gives a very concise and vivid picture of the kind of demand agriculture is going to enjoy in the coming years.

The grain markets have made new highs and the bull market looks very much alive.

However, the political fire started in Egypt recently has really spread.

Libya, Syria, Algeria, Sudan, Bahrain, Yemen, Jordan, and Saudi Arabia all now have civil unrest and the list is growing.

Even China recently moved extra troops to the capital to deal with protests.

Like most fires, this can be good and bad, depending on how wild they get and who is in control. Right now, the U.S. has just been watching. But from a strictly economic view, if the fire would happen to

BY JOHN CRIPE

A few years ago, we started giving presentations on the top 10 reasons to go long agriculture. Granted, they were not as funny as David Letterman’s, but we still thought it was interesting.

The reasons were, from a world prospective: population John Cripe growth, income growth, land and water constraints, climate change, renewable fuels, the concentration of agriculture exports, land valuation, inventories, diversification, and foreign government stockpiling.

Take time to look up the YouTube video “Hans

reach the fuse of inflation, we might find out what the big bang theory really means.

Traditionally, inflation has thought to be a reason to buy commodities, and corn, beans, and wheat have certainly bene-

fited by that kind of thinking.

The danger here is that if this political fire burns wild and hot, it could send crude oil significantly higher.

History tells us in every year that crude oil has ral-

lied, 80 percent-plus a recession or depression followed.

The exception was 1987, and that year we still had a hard stock market sell-off in the fall.

We have to be careful what we wish for and stay informed on these world events, because the real long-term foundation of the agriculture commodity rally is demand.

If hyper-inflation goes too far and wrecks the world economy, we will have to start all over again, and that won’t be pretty. They say that there is no cure for high prices like high prices, and we really don’t want the cure for what we have enjoyed so far.

John Cripe is director of MIDCO Commodities. His e-mail address is jcripe@mid-co.com.

Cattle prices slip from record highs; pork rebounds

BY DANIEL GRANT FarmWeek

lowed a similar path last week.

Prices declined by $4.85 per hundredweight before bouncing back more than $5 to $99.93 on Friday.

“I think it was an overreaction to the downside in recognition that Japan is our No. 1 pork buyer and our thirdlargest beef buyer,” said Chris Hurt, Purdue University ag economist.

“We saw massive swings in the grain and livestock mar-

Cattle prices on Friday improved slightly after the market, similar to most other commodity markets, suffered a major setback in the wake of the disasters in Japan.

June cattle futures last week declined $6.30 per hundredweight before closing the week up $1.15 at $111.80 per hundredweight.

June hog futures had fol-

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 $34.50-53.92 $41.30 $67.00-74.17 $73.37 n/a n/a This Week Last Week 33,578 25,827 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $79.08 $81.20 $58.52 $60.09

Change -2.12 -1.57

USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers

This week 112.91 112.96

Prv. week 117.61 117.81

Change -4.70 -4.85

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) Prev. week Change 129.25 0.43

This week 128.82

Lamb prices N/A

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 3-10-11 32.9 25.7 35.2 3-03-11 27.4 21.4 45.2 Last year 32.2 11.0 39.2 Season total 1212.1 909.0 883.3 Previous season total 1180.0 656.7 893.0 USDA projected total 1590 1300 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

FarmWeekNow.com For additional information on the cattle on feed report, go to FarmWeekNow.com.

kets (last week),” he continued. “The tone at the end of the week was much more positive.”

However, the cattle market may not regain all the ground it lost last week. Record-high beef and cattle prices along with economic uncertainty, tied to the situation in Japan and the trend of high oil prices, could be a negative for beef demand, Hurt noted.

Meanwhile, U.S. cattlemen have not backed off recent production. The inventory of all cattle and calves on feed in the U.S. as of March 1 totaled

11.4 million head, up 5 percent from a year ago.

“We’re sticking a lot of cattle in the feedlots this year,” said Darrel Good, University of Illinois Extension ag economist. “Cattle prices have been pretty encouraging to maintain production.”

The fear that previously surging U.S. meat exports could take a major hit due to the disasters in Japan seemed to subside late last week.

U.S. beef exports in January were up 24 percent in volume compared to last year while January pork exports were 15 percent ahead of the previous year’s pace.

And those trends could continue.

“With some disruptions (to food production) in Japan, I think the U.S. will have to be a

bigger supplier of finished goods, such as pork and beef,” Hurt said. “The rebuilding of Japan actually could stimulate some purchases from the U.S.”

Honeywell fined $11.8 million for illegal storage of hazardous waste in Massac County Honeywell International Inc. has pleaded guilty in federal district court in Benton for knowingly storing hazardous waste without a permit in Massac County and was fined $11.8 million.

Honeywell, based in New Jersey, owns and operates a uranium hexafluoride conversion facility in Massac County, near Metropolis and the Ohio River.

“The defendant’s illegal storage practices put employees at risk of exposure to radioactive and hazardous materials,” said Cynthia Giles, assistant administrator for the Environmental Protection Agency’s (EPA) office of enforcement and compliance assurance.

Honeywell is licensed by the U.S. Nuclear Regulatory Commission to possess and manage natural uranium, which it converts into uranium hexafluoride for nuclear fuel. The Metropolis facility is the only U.S facility to convert natural uranium into uranium hexafluoride.

In November 2002, Honeywell officials shut down part of the process used to reclaim the

uranium, knowing that previously accumulated drums of waste and any ones generated thereafter would have to be stored onsite until the reclamation process was restarted.

In April 2009, EPA special agents with a search warrant found nearly 7,500 illegally stored drums containing waste that was both radioactive and hazardous. Honeywell began storing the drums in compliance with an approved EPA permit around March 2010.

In accordance with the criminal plea agreement, Honeywell will serve a five-year probation and must comply with the terms of the interim consent order with Illinois Attorney General Lisa Madigan and the Illinois EPA, filed on April 21, 2010, and any subsequent revisions.

Honeywell also must implement a community service project in the area surrounding the Metropolis facility. Honeywell is to develop, fund, and implement at least eight household hazardous waste collections over a two-year period.

FarmWeek Page 15 Monday, March 21, 2011

PROFITABILITY Corn Strategy

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

Cents per bu.

2010 crop: May futures recently dropped through support at $6.33, and tested the $6.05-$6.25 region.

However, with the market in the early part of the 40-week cycle low, a bottom could come at anytime. We wouldn’t sell the break, but use rallies above $7 on May for catch-up sales. Hedge-toarrive (HTA) contacts 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: Trade in the commodity markets remains volatile on concern about the impact of the earthquake and tsunami in Japan. However, little has changed as far as the overall fundamental picture in commodities. Looking ahead, the trade will focus its attention on the March planting intentions report and spring weather conditions.

Soybean Strategy

Soy export sales ahead of expectations With an expected bumper South American soybean crop starting to fill the supply pipelines, it is inevitable demand for U.S. soybeans will

Basis charts

start to lag. Up to this point, demand for U.S. soybeans has outpaced USDA expectations.

However, going forward the market will have to contend with some additional unknowns following the recent earthquake and tsunami in Japan. Japanese ports have sustained damage, disrupting supply chains and making imports difficult.

Corn and wheat export shipments continue to lag expectations. But since the beginning of the year, wheat shipments have demonstrated a significant increase. However, both markets stand to be affected by the situation in Japan. A temporary reduction in grain purchases from Japan is expected, as they assess the situation. Japan is the world’s largest importers of corn, third largest of soybeans, and fourth largest of wheat.

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2010 crop: Demand for U.S. soybeans will continue to subside as South American supplies become readily available. Without a weather problem, lower prices are ahead.

Use a rally to $13.50-$13.75 to wrap up sales.

2011 crop: The shortterm direction in soybeans is a little unclear. Following the recent break, prices in the May contract have managed to clear both the 10-day and 100day moving averages. However, we are in a window for the three-year cycle low to bottom. Hold off on making sales until a bottom has been confirmed. However, plan to increase sales to 50 percent by early summer.

Fundamentals: The trade is keeping a watchful eye on conditions down in South America, as harvest continues to progress. Some delays are being reported in Brazil due to heavy rains.

Wheat Strategy 2010 crop: Wheat recently penetrated the critical technical support at $7.44 in the May contract.

As a result, prices traded down to the $6.80 support.

However, this decline should be nearly exhausted for now.

Don’t sell the break, but plan to use a rebound to the $7.50s 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: In the coming months, the attention in the wheat market will be on conditions throughout the Plains. Currently windy and dry weather is stressing the hard red winter wheat crop in the western Plains. The current forecast is not calling for any relief.

Also, in the coming months the winter wheat crop will be vulnerable to frost damage.

FarmWeek Page 16 Monday, March 21, 2011

PERSPECTIVES

Horticulture’s history spans from Africa to North America Plant introductions into the United States have a long and storied history.

Volumes certainly could be written about the multitude of plants as they traversed the globe throughout the ages eventually finding their way here.

When I first started thinking about plants that came into the United States from Africa, I immediately thought of peanuts. Maybe it’s because of my Nigerian friends who taught me how to make peanut butter chicken (You’ll find it below).

That was my first experience cooking with peanut butter. I was surprised to learn that MARI LOEHRLEIN not only did peanuts originate in South America, but peanut butter has been around since Mayan times.

Cowpeas originated in Africa, but they are more widely known as blackeyed peas, probably because of the white spot surrounded by a black spot on the white bean.

Many people do not like the flavor of black-eyed peas, and some suggest

adding bacon or a ham bone in the cooking pot to improve the taste. However, a jalapeno pepper in the pot works well, too.

All accounts agree the watermelon originated in Africa, where vast expanses of them have been observed growing wild. Local people have long used them as a source of water in desert areas.

Watermelons grow on sandy soil and thrive in very hot temperatures. Evidence exists of their cultivation in other areas of the world for thousands of years.

One report states that watermelon was brought to America by early European colonists, whereas another source claims they were brought on ships involved in the slave trade.

Maybe both are true. Another report mentions a Russian alcoholic beverage made from watermelon.

Gumbo would not be gumbo without okra, but okra can be cooked in other ways, such as dipped in cornmeal and fried.

Wild forms of okra may be found in the area of its origin — Ethiopia and the upper Nile region.

Okra pods must be harvested when very young and still tender.

After about five days or so, they become increasingly woody and don’t cook very well. Many people object to the slimy nature of the pods when cooked, but they make a great addition to soups and stews.

I will conclude with the peanut butter chicken recipe from my Nigerian friends.

Chop an onion and three cloves of garlic and sauté them in cooking oil until translucent. Add bite-sized pieces of chicken and cook for three minutes on medium heat. Add 2 ounces of sweet vermouth and simmer for two minutes, then add two chopped tomatoes, 1 tablespoon of tomato paste, and one chopped bell pepper or two chile peppers, simmer for 15 minutes.

Add basil, oregano, and parsley, salt

Illustration

by Sharon Newton

and black pepper to taste. Simmer 10 more minutes and stir in 2 tablespoons of peanut butter. Serve over freshly cooked white rice. Bon appétit!

Mari Loehrlein is a horticulture professor at Western Illinois University’s School of Agriculture. Her e-mail address is MMLoehrlein@wiu.edu.

U of Florida students’ idea to thank farmers is worth replicating When some of the dining halls at the University of Florida started adopting “meatless Monday” policies, as demanded by a small group of students who took up the animal rights cause, University of Florida (U of F) agriculture student Tera Black saw a positive opportunity to raise awareness about her LYNNE chosen field.

FINNERTY Working through agriculture-based student organizations, Tera and several of her classmates plan to host “Thank a Farmer Thursday” on March 31.

Students will spread out on

campus and distribute fact sheets and brochures about how meat production — and all of agriculture — benefit our economy.

They’ll provide food samples and pass out “Thank a Farmer” T-shirts. They also plan to have students sign large “thank you” cards to local farmers and ranchers.

The Alachua County (Fla.) Farm Bureau Young Farmers & Ranchers Committee will help with the event at the U of F, which is located in the committee’s home county.

The anti-meat activists at the U of F probably don’t realize what they’ve started. The “Thank a Farmer” idea has spread to campuses across the country.

On March 31, students at several large universities will get a lesson in Agriculture 101, no matter what their majors might be.

“Hopefully, this will help students connect the food they eat and the clothes they wear to the people who provided them,” Tera said.

College students eat a lot of late-night pepperoni pizza, and “meatless Mondays” aren’t likely to change that. However, to Tera and her fellow ag students, this is about much more than whether someone orders a salad with or without grilled chicken.

“I think it’s more of an ethical issue,” Tera explained.

Rather than increasing students’ food choices, “it takes away a choice,” she said. After all, stu-

dents already can order a veggie burger any day of the week if they want.

While the “meatless Monday” fad got the ball rolling for Tera and her agriculture classmates, she said “Thank a Farmer Thursday” will be a larger, ongoing endeavor to educate the public about agriculture’s importance to our food security and economy.

The students have founded an organization they’re calling AgFACTS Inc., to keep the effort going beyond March 31.

AgFACTS stands for “Agriculture: Feeding and Clothing Tomorrow’s Society.”

The college years are a time of self discovery and broadening horizons for most young people. Students start to flex

their political muscles, and activism at universities is nothing new.

This totally student-led effort can make a positive impression at a time when young people are voting for the first time, deciding who they want to be, and forming lifelong ideologies.

It looks as if “tomorrow’s society” may be in excellent hands. To learn more about “Thank a Farmer Thursday” and find out how you can help, search for “AgFACTS Inc.” on Facebook or send an e-mail to agfactsusa@gmail.com.

Lynne Finnerty is the editor of FBNews, the American Farm Bureau Federation’s official newspaper. Her e-mail is lynnef@fb.org.

LETTER TO THE EDITOR Agriculture provides homegrown security Editor; Recently there has been much in the news about unrest in the Middle East driving up U.S. fuel prices. We have a sense of vulnerability when we realize events that occur half a world away affect our quality of life.

However, when it comes to food, fiber and yes, biofuels, we aren’t vulnerable. Why? Because thanks to America’s farmers and ranchers, we have homegrown security.

Food, fiber, and alternative fuel sources are affordable and abundant in the U.S. where agriculture is the nation’s backbone. Our ability to provide for our own people — plus a significant percent

of the world’s growing population — is the envy of other nations. For that reason, it was appropriate we recognized the contributions of farmers and ranchers March 15 on National Ag Day. The agriculture industry has made significant progress in the past century, progress has made the U.S. the most self-sufficient country in modern civilization. Because of agricultural ingenuity, we can feed, clothe, and shelter ourselves, and provide life’s necessities to all U.S. citizens at home and to our armed forces worldwide.

Agriculture is the first line of defense in America, and the first line of defense of America. We owe the men and women involved in agriculture an enormous debt of gratitude.

I, as well as the USDA Farm Service Agency (FSA) employees in Illinois, understand and appreciate the amount of work done on a daily basis by farmers and ranchers who protect our natural resources and produce the nation’s food, fiber, and fuel. I encourage consumers to learn more about agriculture and the people involved in the industry.

We never want to be dependent on a foreign food supply. America’s farmers and ranchers make sure our nation stays independent from the ground up. As long as they remain steadfast in their stewardship and productivity, America will remain strong.

SCHERRIE GIAMNCO State Executive Director Illinois USDA FSA

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