THE FORECAST for this week calls for drier conditions after today and a warming trend later in the week. ..........................................5
U.S. REP. JERRY Costello is concerned about proposals to extend federal jurisdiction beyond rivers and other navigable waters. ......................4
HIGH YIELD expectations this year likely won’t bring farmers much higher crop prices because ending stocks remain plentiful. .................13
Monday, May 17, 2010
Two sections Volume 38, No. 20
Biofuels incentives seen as lacking
Fertilizer concerns dog new energy/climate plan BY MARTIN ROSS FarmWeek
Some might call it “Climate Lite.” New Senate climate-energy measures place a greater emphasis on domestic energy development and propose an initially lighter regulatory burden for manufacturers and utilities vs. failed House “cap-and-
trade” legislation. However, the bill’s energy provisions run light on renewable biofuels provisions while posing a potentially heavy hit for U.S. fertilizer production, industry sources warn. Stephanie Dreyer, spokesman with the ethanol coalition Growth Energy hopes
the former can be addressed as the bill, spearheaded by Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), moves through Congress. But Illinois Fertilizer and Chemical Association Director Jean Payne fears the measure could cause far greater long-term harm for the Mid-
NOT THE BEST
Morris Wildermuth, Pekin, a member of the Tazewell County Farm Bureau for 50 years, checks a wheat stand in a field located near Tremont. He said the stand is “not the best” and estimated the yield this year may be down 25 percent. Wildermuth, who was able to plant 85 percent of his intended wheat acres last fall, is concerned about the possibility of scab as his existing wheat crop started blooming last week about the time weather conditions turned cool and rainy. Read more about wheat production in Illinois this year on page 5. (Photo by Ken Kashian)
west farm sector. The Senate bill, currently in committee, aims to cap annual domestic greenhouse gas (GHG) emissions, reduce oil imports, and purportedly create millions of energy-related jobs. It addresses key criticisms of House cap-and-trade measures by offering a greater level of initial emissions “allowances” for manufacturers and energy suppliers. But by pushing utilities and industry toward greater use of natural gas vs. less GHGfriendly energy sources such as coal, Payne fears the plan could curtail an already stressed, natural gas dependent fertilizer sector, possibly driving production offshore. That would leave farmers and ultimately consumers “more vulnerable to what’s going on in the world economy,” she said. The region’s sole fertilizer manufacturer, Dubuque-based Rentech, is “very important to the employment picture” in Northwestern Illinois, Payne stressed. Nationwide, the fertilizer sector supports an estimated 250,000-plus jobs. “It’s evident the demand for nitrogen worldwide is going to continue to be very strong,” she told FarmWeek. “We want
Periodicals: Time Valued
IFB: Crunch time for ATV bill Lawmakers back last week of May? BY KAY SHIPMAN FarmWeek
Farm Bureau leaders are being urged to ask their representatives and “adopted legislators” to support a key Illinois Farm Bureau state legislative priority before the General Assembly adjourns. One of IFB’s priorities is to restore farmers’ ability to drive all-terrain vehicles and utility-terrain vehicles on roads for farming purposes and also to cross
roads with the vehicles. “HB 6094 contains that language and is one step away from being sent to the governor for his signature,” said Kevin Semlow, IFB director of state legislation. “We are requesting members of the Illinois House of Representatives to take action on this issue before they adjourn.” Lawmakers appear to be returning the last full week of May to pass a state budget before legislative deadlines would require a super-majority for passage. Farm Bureau leaders are
FarmWeek on the web: FarmWeekNow.com
asked to contact their representatives and any representatives adopted by the county Farm Bureaus through the Adopt-a-Legislator program by this Thursday. “Encourage them to ask for HB 6094 to be passed out of the House before adjournment,” Semlow explained. To obtain a representative’s district office telephone number, go online to the IFB Legislative Action Center at {http://capwiz.com/ilfb/officials/state/?state=IL} or the General Assembly’s website at {www.ilga.gov}.
to keep a strong manufacturing sector in the United States. “We feel this bill’s going to impact the fertilizer industry’s ability to compete with natural gas prices around the world. That happened back in 2000, when prices shot up and you saw the big movement of manufacturing offshore.” Meanwhile, Growth Energy’s Dreyer noted the KerryLieberman package is “a little bit light” in terms of incentives for renewable motor fuel development. Growth Energy, which includes both corn and prospective cellulosic ethanol producers, favors new mandates for E85-capable “flexfuel” vehicles, incentives for mixed-blend ethanol “blender pump” infrastructure, and extension of the 45-cent-pergallon ethanol tax credit set to expire Dec. 31. The group hopes to strike language in the federal renewable fuel standard (RFS2) that restricts classification of cornbased ethanol as an “advanced biofuel,” potentially limiting existing ethanol plants in being able to tap future RFS2-driven demand. The Kerry-Lieberman bill would not count carbon dioxide released by biomass electricity plants or biofuels against emissions caps, exempting producers from having to buy emissions allowances. Dreyer believes summer gas prices may drive support for including additional biofuels provisions. “Initially, we’re a little bit disappointed, but not disheartened,” she told FarmWeek. “We know this is just the first draft of the bill, and there are a lot of steps that need to be taken before it gets to its final version. “There are a few things we’d want to see in the final version specifically that have to do with transportation fuels. All these are things that can be attached to this type of legislation.”
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, May 17, 2010
IFB IN ACTION
Quick Takes GREENHOUSE PILEUP? — Agriculture and the auto industry may be headed for a fender-bender over U.S. Environmental Protection Agency (EPA) greenhouse gas regulation. Sen. Lisa Murkowski (R-Alaska) and a cadre of bipartisan House members are sponsoring a “resolution of disapproval” that, according to American Farm Bureau Federation analyst Paul Schlegel, “strip EPA of its authority to regulate greenhouse gases.” That would “undo” EPA’s recently issued rules for “mobile” greenhouse sources (i.e., vehicle tailpipe emissions). Regulation of mobile sources sets the stage for EPA to move toward regulating greenhouse gases for “stationary sources,” such as livestock production. But Schlegel told FarmWeek the auto industry supports a federal standard over a patchwork of “low-carbon fuel” standards in California and other states. One solution to a possible auto-ag standoff: Legislation by Sen. Jay Rockefeller (D-W.Va.) would force EPA to delay imposing new regs on stationary sources for two years. Schlegel suggests that if disapproval resolutions fail, some kind of limit on stationary source regulation could be incorporated into House-Senate spending measures. U OF I SELECTS NEW PRESIDENT — A Midwestern native will become the next University of Illinois president July 1, following confirmation during Thursday’s U of I board of trustees meeting. Michael Hogan, president of the University of Connecticut since 2007, will succeed President Stanley Ikenberry and oversee campuses in Urbana-Champaign, Chicago, and Springfield. Hogan has a four-decade career in public higher education that includes serving in the administration of the Ohio State University and the University of Iowa. BE A GOOD FARM NEIGHBOR — Neighborly practices can reduce conflicts between farmers and nonfarm families, reminds Nicole Olynk, Purdue University agricultural economist. Citizen complaints against farmers most often stem from odors, but many times relate to surface or ground water, or a combination of the three. And while traditionally most complaints deal with animal agriculture, crop farmers are not exempt. “Crop farms are not immune to negative perceptions of cropping practices,” Olynk said. One way farmers can reduce friction is being mindful of the ways non-farm neighbors perceive on-farm practices. Small acts of neighborly kindness, such as helping neighbors after snowstorms or inviting them to visit the farm, may build goodwill. Slight modifications to farming practices also can help ease tension, said Olynk.
(ISSN0197-6680) Vol. 38 No. 20
May 17, 2010
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard Advertising Sales Manager
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David and Debbie Meiss take a leisurely stroll down the historic lane that leads to their fourth-generation farm near Gridley. It is a walk the two take frequently as they discuss their day’s activities. The couple strives to carry on farm traditions and they work as a team, much like David’s parents, Floyd and Marge, did prior to Floyd’s death in 2002. (Photo by Ken Kashian)
Advocate for agriculture
Meiss driven by faith, family, farm traditions BY DANIEL GRANT FarmWeek
David Meiss, 49, feels blessed to be in production agriculture and able to carry on his family’s farming tradition. The fourth-generation farmer went to work fulltime on his family’s operation in the late 1970s. He currently produces corn, soybeans, and occasionally some wheat in McLean and Livingston counties. His home county, McLean, has the distinction of being one of the largest cornproducing counties in the nation. Last year McLean County farmers produced 68.5 million bushels of corn and 13.04 million bushels of soybeans. Both production totals were the largest of any county in the state. “I’m the fourth generation to own the farm,” Meiss said of his family’s operation in Gridley. “The list of memories and tradition on our farm is about as long as the half-mile lane that leads to it.” Meiss, who last December was elected to represent District 7 on the Illinois Farm Bureau Board of Directors, was able to begin his farming career directly out of high school when he had an opportunity to raise hogs. But even after three-plus decades in the farming business, he takes nothing for granted. In fact, when he’s not on a tractor or in his office, there is a good chance Meiss is at a meeting or some type of event representing agriculture, his church, or his community. Meiss served as vice president of the McLean County Farm Bureau board for two years and as a member of the board for eight years. He is a member of the Illinois Corn Growers Association, Illinois Pork Producers Association, Illinois Soybean Association, and the Apostolic Christian Church. The Meisses have three children, Derek, 26, Jordan, 23, and Chloe, 15, and a daughter-inlaw, Sarah.
“My motivation for service stems from my Christian faith along with the strong work ethic I learned by working side by side with my father. It is my belief and conviction that we should give back to society and share with others.” Various leadership roles and involvement in the Farm Bureau have contributed to Meiss’ increased awareness of the important issues that face agriculture. “As farmers, we need to be advocates in promoting our industry,” he said. “By being involved and more informed, we can enhance agriculture and help others perceive that what we do is a good thing.” Meiss developed his appreciation and passion for agriculture from his parents, Floyd and Marge. He and his wife, Debbie, carry on the husband/wife tradition of farming together. “I was a typical farm boy,” he said. “From the minute I started walking, I followed my dad (who passed away in 2002) everywhere.” Meiss still remembers a day in high school that left little doubt about his career path. He was at a sports practice but down the road could see his father out working a field. “I thought, I don’t want to be here, I’d rather be working with my dad,” he recalled. Meiss has been on the farm since high school, and he believes the family’s farming tradition will continue in the future. He also served on the Gridley school board, as a Gridley Township trustee, and in various ministries within his church, the most recent being a mission trip to work at a deaf school in Jamaica. In his spare time, Meiss enjoys taking leisurely motorcycle cruises around the countryside. His wife and daughter often ride along. He also is a certified scuba diver. Meiss, as the District 7 director, represents Marshall, McLean, Putnam, Tazewell, and Woodford counties.
FarmWeek Page 3 Monday, May 17, 2010
STATE
IDOA suspends licenses of McLean County elevator BY KAY SHIPMAN FarmWeek
Illinois Department of Agriculture (IDOA) officials were assessing the grain inventory of a McLean County cooperative elevator last week after suspending its grain dealer and warehouse licenses, IDOA officials told FarmWeek. The Towanda Grain Co. board of directors reported “financial irregularities” to IDOA, said Jeff Squibb, IDOA spokesman. Squibb declined to specify what the irregularities were. IDOA bureau of warehouses officials arrived at the facility an hour after receiving the report, conducted an initial assessment, and suspended the licenses to preserve the assets for producers and lenders, said Stuart Selinger, chief of IDOA’s warehouses bureau. The facility held a little more than 1 million bushels
of corn with storage capacity for about 3 million bushels. Selinger said the grain inventory was on site and its “quality is typical for what we’re seeing this year.” IDOA has scheduled a May
24 hearing in Springfield, and Towanda officials must have resolved the co-op’s finances at that time, Selinger noted. However, Selinger said he was hopeful a buyer for the elevator will be found, and
that IDOA officials are working with Towanda’s board of directors and CoBank, the coop’s lender, to finalize a sale. “There has been interest in acquiring the elevator. It’s in a desirable location. It’s in one
Carroll County man sentenced for warehouse case A Carroll County businessman recently was sentenced to a 70-month prison term for his part in a bank fraud related to a failed grain warehouse. U.S. District Judge Frederick Kapala sentenced Marvin Peugh, 56, of Milledgeville for convictions of bank fraud, fraudulently obtaining loans, and check kiting (a bank check drawn on insufficient funds to take advantage of the time interval for collection). Peugh’s former business partner, Steven Hollewell, 63, Lanark, earlier had pleaded guilty to bank fraud and was sentenced to a year in prison. Peugh also was ordered to pay $1.967 million in restitution, and Hollewell must pay $2.09 million in restitution. Peugh was president and Hollewell was secretary of the Grainary Inc., a state-licensed
grain facility that failed in August 2000. Grainary, located in Lanark, bought, sold, dried, and stored grain. The two men also were officers and shareholders in Agri-Tech Inc., a custom-farming business. According to the Federal Bureau of Investigation (FBI), the men deceived several banks and obtained loans for Grainary by making false statements about grain that was to be delivered by Agri-Tech. However, Agri-Tech did not own or lease any land or receive any grain, according to the indictment. As a result of the scheme, the men were able to withdraw money from bank accounts that weren’t supported by actual funds. The FBI received assistance on the case from the Illinois Department of Agriculture’s bureau of warehouses.
of the leading grain-producing counties in one of the leading grain-producing states,” Squibb added. In a worst-case scenario, farmers and lenders would be covered by the Illinois Grain Insurance Fund, Selinger noted. Under the state’s Grain Code, farmers who delivered grain for storage in a statelicensed facility but have not received payment for it are covered by the grain insurance fund. IDOA inspectors last inspected Towanda Grain on May 21, 2009, and the co-op was due for another inspection in the near future, Squibb said. This marks Illinois’ first elevator failure in a little more than two years. In February 2008, The Grain Exchange LLC, Carlyle, failed, and IDOA dipped into the Grain Insurance Fund to pay claims.
Sangamon County elevator, Minnesota firm to partner? A Sangamon County elevator and a Minnesota-based grain company last week signed a letter of understanding to form a partnership. Stockholders of Farmers Elevator Co. of Lowder will vote in June on the agreement with CHS Inc., a Fortune 100 energy, grains, and foods company,
based in Inver Grove, Minn. “We think this is a good relationship. They (Farmers Elevator) have a strong, local presence with great producers. We are a farmer-owned cooperative with strong domestic markets and an international market presence,” Lani Jordan, CHS spokesman, told FarmWeek.
Be careful when managing pests around pollinators Recently, honey bees have come under a great deal of stress due to colony collapse disorder (CCD). CCD is characterized by a sudden disappearance of most of the worker bees in a hive, leaving only the queen and a few attendants, said Doug Jones, University of Illinois Extension integrated pest management specialist. “Some commercial bee keeps sustained losses of up to 90 percent of their hives,” Jones said. Honey bees are one of the ‘Some commer- important pollinators for many c i a l b e e k e e p s crops and favorite foods. It has been estimated that sustained losses honey bees fly 55,000 miles to of up to 90 per- make just one pound of honey. cent of their Jones explained honey bees’ immune systems are underpowhives.’ ered compared with that of oth— Doug Jones er insect species. They are extremely susceptiUniversity of Illinois ble to routinely applied pestipest management specialist cides. “When possible, don’t apply pesticides to plants that are in bloom, especially those that the bees are actively visiting,” Jones advised. “If feasible, use other methods rather than pesticides to control pests. “If you must apply a pesticide, always read the label and choose those chemicals that are less toxic to honey bees,” he said. The label also will provide information about how to apply the pesticide so it will not directly affect the bee population.
Farmers Elevator has facilities in Waverly and Auburn. Since 2005, it has operated a unit train loading facility that can load 110-car unit trains in about 11 hours. Greg Dolbeare, Farmers Elevator general manager, said in a statement the new partnership would provide market access
expansion and efficiencies for customers. Dolbeare was not available last week for further comment. “Should this (partnership) be approved, we (CHS) have access on the Illinois and Mississippi rivers, and in New Orleans, we have a shipping terminal that moves grain all over
the world,” Jordan noted. In addition to supplying energy, fertilizer, grain, livestock feed, and food ingredients, CHS also operates petroleum refineries and pipelines and manufactures and distributes fuels, lubricants, propane, and other energy products. — Kay Shipman
GAINING UNDERSTANDING
Twelve employees of Eurest Dining Services and its parent company, Compass Group, toured Illinois Farm Bureau President Philip Nelson’s farm in Seneca last week. The group of employees included senior management, local management, and chefs from around the Midwest. Nelson, shown gesturing as the talks about his planter, explained how farmers care for their livestock, the benefits of modern agriculture and biotechnology, and the day-to-day challenges of running a farm. Tours such as this help educate food companies about farming and allow IFB to provide its perspective on issues related to food production. Compass is the foodservice management company that provides food for the IAA Building and Country Financial buildings in Bloomington. (Photo by Bill Bodine, IFB director of external relations)
FarmWeek Page 4 Monday, May 17, 2010
GOVERNMENT
Oberstar, Chesapeake proposals heighten fears BY MARTIN ROSS FarmWeek
U.S. Rep. Jerry Costello, a Belleville Democrat on the House Transportation and Infrastructure Committee, is concerned about proposals to extend federal jurisdiction beyond rivers and other “navigable” waters. The measure is sponsored by committee Chairman James Oberstar (D-Minn.). Producers fear expanding federal control theoretically to any domestic water supply could lead to costly permit requirements for a variety of activities.
“I understand the concerns of farmers and have expressed those concerns to Oberstar and others,” Costello told FarmWeek. “I think (Oberstar’s proposal) is wellintended, and hopefully we can work something out before the legislation goes to the floor. “(Clean water) law needs to be clarified, I don’t think there’s any question. But at the same time, enforcement needs to be reasonable, so we do not end up hurting the economy.” Amid growing concerns about federal controls, the
U.S. Environmental Protection Agency (EPA) last week released a clean water strategy for the Chesapeake Bay region. The plan, aimed at protecting and restoring a 64,000-square-mile watershed, includes rigorous regulation of urban storm water runoff and conservation practices on 4 million farm acres. EPA will implement a Chesapeake total maximum daily nutrient load (TMDL) for concentrated animal feeding operations. According to Maryland Farm Bureau (MFB) assistant director of
government relations Kurt Fuchs, EPA officials view the Chesapeake strategy as a trial balloon for watershed controls in other regions. MFB fears costly added regulation of Maryland’s crucial poultry industry could spur industry “integrators” to move production out of the state. That would have a devastating impact on Maryland broiler operations and the grain producers who supply them, Fuchs warned. Maryland congressmen are eyeing the idea of passing specific regional TMDL
thresholds, and Oberstar’s measure would intensify potential problems, he said. “Once you take this power away from the state and the local governments, it becomes an issue of control,” Fuchs told FarmWeek. “Where does the requirement for getting approval from the federal government end? “Is it a three-home development that needs to seek approval from the federal government because of its potential to affect water quality? Once you give up that control at the local/state level, it’s a slippery slope.”
‘Circuitbreaker’ protection under climate measure for agricultural acreage
New immigration debate big show, starting point?
The “Kerry-Lieberman” climate bill introduced last week includes a “circuit-breaker provision” to help prevent an acreage shift to forestry that would hurt the nation’s food supply or drive up commodity prices. The bill would require USDA to conduct a periodic analysis of land removed from crop production or grazing for afforestation projects to study the impact on food, feed, and commodity prices; livestock prices; and the environment. The ag secretary could restrict acres from being converted for carbon-offset forestry projects if such a shift causes “serious adverse effects on United States agriculture or the public interest.” The bill establishes a new program for investing in ag and forestry projects to sequester and reduce greenhouse gas emissions. “Early adopters” of no-till and other conservation practices reportedly would receive carbon credits under the Senate plan.
Washington observers are uncertain has become a real albatross for the whether heated debate over Arizona immigra- Democrats. They need it to keep their base tion law will light a long-awaited fire under going strong, because they overcommitted Congress or merely spur flashy political fireto doing something that was going to take works. care particularly of those who are here illeWith emotions running high over Arizona’s gally. effort to stem the flow of illegal immigrants “But they just don’t have the wherewithal (a move that prompted concerns about profil- to do it: They brought it up as a mid-term ing of Latino citizens), immigration policy election issue, and it doesn’t have the gas to has resurfaced among congressional Democget over the finish line.” rats especially. Gaskill argued Arizona’s new immigration Senate Majority Leader Harry Reid (Dlaw has “crystallized” positions on immigraNevada) stands at risk of losing his seat this tion, mobilizing border control advocates fall, and has strong motivation to “energize” while sparking protest among Latino-AmeriNevada’s Latino voters, according to American groups and supporters of immigrant can Farm legalization. Bureau FederaThe state tion (AFBF) statute Public Policy police ‘T h i s t h i n g c a l l e d i m m i g r a t i o n r e - requires Director Paul officers to ask fo r m h a s b e c o m e a r e a l a l b a t r o s s for proof of Schlegel. Reid has legal status for the Democrats.’ released a 26whenever they page framehave a “reawork for immi— Ron Gaskill sonable suspiAmerican Farm Bureau Federation gration reform cion” someone with Sens. Bob they have Menendez (Dstopped for N.J.) and Chuck another purSchumer, a pose is an illeNew York Democrat expected to easily retain gal alien. his seat in November. Based on new Gallup and Rasmussen polls, The trio took a “border security first” the U.S. public largely supports Arizona’s approach, “a very Republican perspective” push, not because they necessarily agreed seemingly aimed at courting GOP support, with the law, “but because they agreed AriAFBF labor specialist Ron Gaskill told zona had to do something because WashingFarmWeek. ton hasn’t,” Gaskill said. Their framework also includes AgJOBS, But he questioned how quickly lawmakers a perennial bipartisan measure that promight respond to the growing controversy. poses “earned legalization” for many Republicans responded skeptically to Reid and undocumented workers already in the U.S. company’s call, and Democrats have lost their but offers little in the way of reforms in greatest potential ally in the debate, Sen. Lindthe flawed federal H-2A ag guest worker say Graham (R-S.C.), who cited “the uncertainty visa program. Schumer is a co-sponsor of of immigration politics.” AgJOBS. The immigration issue was seen as a key “Mr. Reid ... is only interested in doing some- factor in turning the Latino vote in Demthing that’ll be viewed as doing something for ocrats’ favor last election. But Gaskill the Latino vote,” Gaskill said. “Of course, Mr. doubts disappointment with Democrat Menendez has been a long-time Latino leadership will prompt another turnabout advocate, and he’s done a lot of work in this fall. immigration in years past. And let’s face it: “There’s no certainty that they’re going to go Mr. Schumer wants Mr. Reid’s job. to Republicans any more than they’ll go to “This thing called immigration reform Democrats,” he said. — Martin Ross
FarmWeek Page 5 Monday, May 17, 2010
PRODUCTION
Rain limits fieldwork: Drier conditions forecast BY DANIEL GRANT FarmWeek
Farmers may have an opportunity to get back into their fields this week after last week basically was a wash due to heavy rains that moved through the state. Illinois last week received rainfall that averaged 3 to 5 inches to the north, 1 to 3 inches in Central Illinois, and a half-inch to an inch in the south, according to Chuck Schaffer, meteorologist with the National Weather Service. The heaviest rains in the state last week were in a line
from Quincy to the northwest corner of the state. Portions of Henry County received as much as 6 inches of rain and there was localized flooding in parts of the state, Schaffer reported. “We had these systems coming through every few days (last week), so the soil didn’t get a chance to dry out,” he said. Schaffer noted some weekend showers may linger into today (Monday). “There may be better opportunities for farmers to finish up fieldwork” this week, he said, however. The forecast called for drier conditions after today and for
a warming trend later in the week, Schaffer said. Illinois farmers as of the first of last week had planted
FarmWeekNow.com Check out the weekly Cropwatchers reports from across Illinois online at FarmWeekNow.com.
94 percent of the corn crop and one-third of soybeans. However, some fields may need to be replanted due to the heavy rains and reports of field ponds. Topsoil moisture in the state prior to the heavy
rains was rated 77 percent adequate, 17 percent surplus, and just 6 percent short. “Little to no work has been done in the fields lately,” said Joe Zumwalt, a FarmWeek Cropwatcher from Hancock County. “Many previously planted cornfields will have to be replanted.” Some standing corn last week was pale in color due in part to the heavy rains and chilly temperatures, according to Robert Bellm, University of Illinois Extension crop systems specialist. But, as of the middle of last week, Bellm had not observed any major frost
damage to the crop. FarmWeek Cropwatchers noted isolated cases of frost damage. The alfalfa crop, however, is slipping in quality as many farmers have been unable to harvest it due to the wet conditions, Bellm said. The condition of the alfalfa crop last Monday (May 10) was rated 76 percent good to excellent, 20 percent fair, and 4 percent poor or very poor. Pasture conditions the first of last week were rated 82 percent good to excellent and 18 percent fair to poor.
Winter wheat acres down; production may plummet USDA last week projected a sizable decline in winter wheat production this year, particularly soft red winter wheat such as that grown in Illinois. U.S. farmers this year were projected to harvest 1.46 billion bushels of winter wheat, down 4 percent from last year. Harvested acres were projected to decline by 8 percent. Soft red winter wheat production was projected to total just 283 million bushels, a 30 percent drop from a year ago. The decline in wheat production is due to the late row
crop harvest and poor conditions that limited planting last fall combined with scattered
‘There is just an enormous supply of wheat.’ — Darin Newsom DTN senior analyst
quality issues this spring that caused some farmers to tear up wheat fields in favor of planting corn or beans.
Quality of some wheat stands remains questionable Wheat growers who haven’t scouted their fields in recent weeks should evaluate the crop soon to determine if it’s worth keeping for harvest. The majority of the crop in the state, 67 percent, last week was rated fair, poor, or very poor, the National Agricultural Statistics Service Illinois field office reported. “A lot of fields have marginal stands,” said Robert Bellm, University of Illinois Extension crop systems educator in Edwardsville. “I assume some of the guys are keeping the stands because they need the straw.” Otherwise, keeping fields with low yield potential could be a gamble compared to planting soybeans in a timely manner, according to Emerson Nafziger, U of I Extension agronomist. “There are some good wheat fields in Illinois but not very many,” Nafziger said. “If your plan is to let a marginal wheat crop go to maturity and then to plant double-crop soybeans, you need to consider the risk of trading good row-crop planting conditions now for very late planting of a second crop under uncertain conditions in mid- to late June.” A glut of wheat on the world market is not sending a strong signal to keep marginal fields of soft red winter wheat, Nafziger noted. The key to assessing yield potential is to count the number of heads per square foot. One head per square foot typically translates to one bushel per acre. The wheat crop in Southwestern Illinois last week was blooming, Bellm said. He believes most farmers in his area already have made the decision on whether to abandon wheat fields. Wheat stands still growing as of last week did not exhibit signs of any major foliar disease outbreaks, Bellm reported. However, the cool and wet weather pattern last week could create problems if it continues. The wheat scab predictor, available online at {www.wheatscab.psu.edu}, as of last week rated the chance of a scab outbreak as “low risk” in Illinois. — Daniel Grant
“This was one of the worst, if not the worst (wheat planting seasons), in the 30 years I’ve been farming,” said John Brink, president of the Illinois Wheat Association (IWA). In Illinois, farmers last fall planted a record-low 350,000 wheat acres and will harvest just 325,000 of those acres this spring/summer compared to 820,000 acres harvested in 2009, according to USDA. Illinois wheat production this year was projected to slip to the lowest total since the 1940s (19.5 million bushels) compared to 45.9 million bushels last year and 73.8 million bushels two years ago.
The average yield in the state this year was projected at 60 bushels per acre compared to 56 bushels a year ago. Unfortunately, the market is not expected to reward farmers who still have wheat, despite the drop in production. “The outlook for U.S. wheat is for larger supplies as higher beginning stocks more than offset lower production,” USDA noted in last week’s crop report. USDA projected U.S. ending stocks of wheat would grow from 950 million bushels in 2009/10 to 997 million bushels in 2010/11.
“There is just an enormous supply of wheat,” said Darin Newsom, DTN senior analyst. “It certainly will continue to hang over its (the market’s) head.” The season average wheat price was projected to range from $4.10 to $5.10 per bushel. Illinois producers later this month will get a better handle on wheat yield potential as IWA will host its annual winter wheat tour on Wednesday, May 26. For more information about the event, visit the website {www.illinoiswheat.org} or call 309-557-3662. — Daniel Grant
FarmWeek Page 6 Monday, May 17, 2010
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Things have changed quite a bit since my last report. We had about 4 inches of rain for the week, with 2 inches coming in a storm Wednesday night that caused lots of ponding in the low areas. We also had some frost damage on Sunday morning (May 9). Some of that frost-damaged corn is now under water, and that won’t be very good. Several farmers in the area were able to finish planting soybeans Monday (May 10), the last day during the week that we could do any fieldwork. The sun was out Friday, so things should look better this week. Pete Tekampe, Grayslake, Lake County: If you flew over Lake County on Friday morning, you would see why we have that name. We received 1 inch of rain over last weekend (May 8-9) and then 3.5-4 inches in four hours on Thursday morning. There were ponds and closed roads everywhere in Lake County. Corn planting was about completed and beans were about 60 percent planted. Early corn looks yellow from the lack of heat. Late corn is just spiking. Early beans are popping, but looking very yellow. Winter grains and hay are looking good. Spring grains are growing slowly, but are OK. Hopefully, we will dry out before the next rain on Monday (today). Leroy Getz, Savanna, Carroll County: Frost on Sunday, May 9, did very little damage, but the cold, wet temperatures put corn development at a standstill. We had 2.9 inches of rain for the week, but no flooding in this area. The corn that is up is pale and the corn that has yet to emerge is waiting for warm sunlight before it puts its tender little heads into the world. Sprayers have either been sitting still because of the winds or the wet weather. Hay is ready to cut, but none has been made. Small grains are thriving with this wet weather. Ron Frieders, Waterman, DeKalb County: On Friday morning looking out I see numerous ponds and the creek out of its bank. More than 4 inches of rain really messed up emerged corn and pounded beans trying to come up. Unusually cold temperatures stalled the growth and turned young corn plants a pale yellow. I am afraid we will be getting the rotary hoe out, as well as replanting drowned-out areas. The weather stopped fieldwork all week. When it dries, sidedressing corn, spraying, finishing planting the remaining bean fields, replanting, and rotary hoeing will all be on the agenda for area farms. Larry Hummel, Dixon, Lee County: Too much too quick describes the storm that rode through Dixon last Wednesday night. Three inches of rain in a short burst overfilled the creeks, caused some erosion, and I even saw someone’s 1,000-gallon LP tank wedged into the trees at the bottom of a ditch. Last week’s frost caused very little damage as far as I can tell. There are few low-lying fields that I would like to check yet, but there is no use plodding through the mud to check for frost damage if it’s too wet to do anything about it. Joe Zumwalt, Warsaw, Hancock County: It has been a quiet couple of weeks in Western Illinois except for the sound of thunder and along with that several inches of rain. Little to no work has been done in the fields lately. Many previously planted cornfields will have to be replanted, but it will be at least a week before we can even think about that. Earlyplanted fields look very good given the cool and wet conditions, but anything planted after April 17 is less favorable. Black cutworms have become very evident in many fields as well. A few beans have been planted, but the weather may have been hard on them, too. Let’s hope for a drier week in Western Illinois.
Ken Reinhardt, Seaton, Mercer County: There was limited fieldwork on Monday morning (May 10) before rain moved in again. One to 2 inches of rain fell that night. Then early Thursday morning 2 to 6 inches came. Some creeks and rivers are near all-time high flood marks. Numerous roads are under water or washed out. Some corn in the lower elevations had been frozen on Mother’s Day anyway. None of the May planted corn has emerged yet, and there could be some replanting of it. I saw one field of soybeans emerged Thursday evening. Ron Moore, Roseville, Warren County: We received 3.25 inches of rain last week. Some areas of Warren County had more than 6 inches. There is a lot of standing water in many fields. It is too soon to tell if any crops will have to be replanted. We had one day of soybean planting left to do when it started raining. It will be late this week before the water even soaks away. The corn is now at the four-leaf stage and some post spraying was just getting started before the rain. I would estimate that 70 percent of the soybeans have been planted with just a few fields of soybeans emerged now. No hay has been mowed. Jacob Streitmatter, Princeville, Peoria County: The current weather is bringing back memories of last year. Tuesday and Wednesday. I received around 2.5 inches of rain and last weekend’s (May 89) rain totaled around a halfinch to an inch. Last Sunday morning (May 9) the area woke up to some scattered frost. I only had one field of corn that showed signs of frost damage. The majority of the corn is planted and soybean planting is well under way. The corn that has emerged looks yellow and does not like the cold weather. The corn underground is just in no hurry to come up. Tim Green, Wyoming, Stark County: I woke up Thursday morning and it was pretty wet in Stark County. We had anywhere from 2 inches to 2.5 or 3 inches to the north. We had rain in the early part of the week, too, so probably for the week we are looking at 4 or 5 inches overall. Rivers are out. Bottom ground is flooded. There was a little frost damage on Sunday morning (May 9). Some guys have replanted already. A lot of people are waiting to see if their corn makes it. Bean planting is still about 40 to 50 percent done. There are a few people done and a few people get to do it over again. Just another day in Stark County. Mark Kerber, Chatsworth, Livingston County: All farming activities came to a halt with three days of rain. We received more than 2 inches of rain. Corn is all planted and is up and looks pretty good — very good stands. Most of the soybeans got planted before the rain. We have some soybeans under water in these soggy fields. Producers are worried how these soybeans will emerge. There was a little frost damage to young corn plants in isolated areas. We noticed the first couple of rows around building sites were damaged. One neighbor south of town will have to replant a whole field because of trash and the high water table led to severe frost killing his corn. Dry and warm weather will be needed for awhile. Markets are holding steady. Brian Schaumburg, Chenoa, McLean County: One to 2 inches of rain fell last week, and most avoided any damage from the severe thunderstorm. Frost damage was spotty and of little consequence. Cooler temps (311 GDUs) slowed crop development as corn is VE to V3. Some soybeans have emerged. Soybean planting is 75 percent done and nitrogen application has a long way to go. Corn, $3.49; $3.45, fall; soybeans, $9.36; $8.92, fall; wheat, $3.89.
Ron Haase, Gilman, Iroquois County: Field activities ended on May 10. Rain kept local farmers out of the field since then. Our farms received anywhere from 1.5 to 1.65 inches, while others in the area reported receiving 2 inches. Many soybean fields in the area have been planted, but not all. Corn development is anywhere from emergence to the V3 growth stage. The laterplanted corn is taking longer to emerge due to the cooler temperatures. Most corn is in the V2 to V3 growth stage. The cold nights early last week caused some corn plants to get hit with frost, but those plants are showing new leaves already. When the soil is dry enough, we plan to begin sidedressing nitrogen in our cornfields. The local closing prices for May 13 were $3.48 for nearby corn, $3.52 for new-crop corn, $9.46 for nearby soybeans, and $8.93 for new-crop soybeans. Steve Ayers, Champaign, Champaign County: 0.4 of an inch of rain May 10, 0.5 of an inch May 11, and 0.25 of an inch May 13 are making for ideal emergence for corn and soybeans. We have 99 percent of corn planted with 78 percent emerged. Soybeans are 50 percent planted with 4 percent emerged. Crops are growing well with no cutworm damage yet and minimal seedling disease. Any problems are in cloddy, compacted, or weedy fields. We are looking for crop circles in the field from 13 striped ground squirrels or moles. We have rain chances through today, and then a dry spell for finishing up bean drilling with temperatures in the 70s. Let’s be careful out there. Wilfred Dittmer, Quincy, Adams County: Another cool 47 degrees and damp this Friday morning after a rainy week totaling 1.1 inches of rain in our gauge. We were lucky in that many in the area received much more along with storm damage. Some were able to plant last weekend (May 8-9), but most equipment has been parked. A lot of corn still has not emerged and several already have replanted. I don’t think any beans have been seeded close by. I’m reminded of one fellow saying several years ago, that we can put the seed in the ground, but we sure cannot make it grow. How true! Carrie Winkelmann, Menard County: We received a total of 2.29 inches of rain last week, taking our monthly total to 4.01 inches. Finished spraying corn last weekend (May 89), but decided to hold off on planting beans. In the county, I would estimate that 100 percent of the corn crop is planted and emerging, and soybean planting ranges from farmers who are completely finished to farmers who have not started. We had frost last weekend (May 8-9), but no damage from it to our crops. Farmers in the county have started their first cutting of hay. The small amount of wheat planted in the area is headed out and looks to make an average crop. Todd Easton, Charleston, Coles County: Farming activities were at a steady pace across Coles County at the beginning of last week until Monday (May 10) evening rains stopped operations in the northern part of the county, and then Tuesday night rains halted the rest of the county. Cumulative rainfall for the area as of Friday morning was just short of an inch. Soybean planting has progressed rapidly ranging from around half done for many producers to nearly done for a few early birds. The very earliest planted soybeans are up and in the V1 stage and look to have good stands, but the vast majority has not emerged. The majority of the corn crop is at or around the V3 stage and has been a bit pale, thanks to the cooler weather, but it should green up and grow up pretty fast whenever the heat decides to show up. Sidedress and spraying activities for the corn have been going well and should start back up soon and get completed in a timely manner, barring any significant rain events this week.
Page 7 Monday, May 17, 2010 FarmWeek
CROPWATCHERS Jimmy Ayers, Rochester, Sangamon County: This past week we received 1.5 inches of rain in our area. The south got more and different amounts were scattered throughout the area. We were almost done planting beans — minus 8 acres. The area around us has a lot of beans planted, but there are several still to be put in the ground. Corn has a yellow cast to it. It hasn’t quite hit the nitrogen yet in most areas. Some fields look great and some are pretty thin. Our river has managed to stay in the banks with all the water lately. The markets are responding a little bit, but it’s uncertain where they are headed. No hay has been cut in the area yet that I am aware of. Early-planted beans look pretty good. There is a tremendous amount of volunteer corn showing up in the corn crop fields that were down last year. Guys are going to have to think about getting their cultivators out to take care of that, much of it being Roundup Ready corn more than likely. Could be a problem for many. Doug Uphoff, Shelbyville, Shelby County: We had mainly rain for the week. At the beginning of the week we did plant a few soybeans. I would say countywide we are 30 to 40 percent planted in soybeans and a 100 percent planted in corn. Most corn is at the V2 stage. We had to replant a 100 acres of corn at the beginning of last weekend (May 8-9). There is a lot of that going on in the southern part of the county, but right now we are waiting for it to warm up and dry up to plant soybeans. Have a safe week. David Schaal, St. Peter, Fayette County: I received 1.3 inches of rain last week, so there was very little fieldwork done, unless it was done on Monday (May 10) before the first rain fell that evening. We had a Farm Bureau meeting on Thursday night. Most members were done planting corn or almost done. Some farmers in the northern part of the county have a few soybeans in the ground. Most corn stands are good to excellent with a lot of it in the 3-4 leaf stage. Not really much to report as far as insects or worms. I did hear a case of some armyworms in a cornfield. Hoping for the timing of the showers to spread out a little so we can continue on with soybean planting. Reports received Friday morning. Expanded crop and weather information available at www.ilfb.org
Ted Kuebrich, Jerseyville, Jersey County: Jersey County received about 2 inches of rain last week that kept farmers from planting beans. There were some farmers spraying fields that will be going into beans when the ground dries out. The beans planted the last couple of weeks are just now starting to come up. The early-planted corn is growing fast and looking very good. Prices at Jersey County Grain, Hardin: May 2010 corn, $3.59; fall delivery 2010 corn, $3.48; May 2010 beans, $9.49; fall delivery 2010 beans, $9.05; July wheat, $4.18.
Rick Corners, Centralia, Jefferson County: When we started planting corn at the earliest date ever, I thought harvest was going to be really early. But at the rate things are growing, I think it may be later than last year. Some corn has been planted more than a month and still is not 3 inches tall. Some that was planted right before the rain is struggling to make a decent stand. We need some hot sunshine and dry weather to get the corn growing and get started planting beans. We had a little frost Sunday morning (May 9), but can’t see where it damaged anything much.
Dan Meinhart, Montrose, Jasper County: Another wet week! Rainfall varied from 2 to 4 inches or more. Little fieldwork was done. Some spraying and fertilizer application was done on Sunday and Monday (May 9-10) where ground conditions permitted. Corn was about half planted, but a lot of replanting will need to be done. This area basically extends from south of I-70 to I-64 and east of I-57. Wheat is headed out. The wet weather is causing disease problems in the wheat. There is more rain forecast for the first part of this week.
Dean Shields, Murphysboro, Jackson County: All week we were waiting for rain to show here in Jackson County and so far we have gotten by with very little. Some guys are sitting on the fence post. They don’t know whether to start planting beans because they fear the heavy rains are coming or to go ahead and plant. So we have a mixed bag of both going on in Jackson County. I have been planting. Corn is progressing pretty well. I don’t know if there is much corn left to be planted. Maybe a little bit and some replant, but I would say most of the corn is planted. Bean planting is progressing with those who want to get started and not wait on the weather. The wheat is headed out and looking pretty decent. But there is not that much wheat in Jackson County because of the wet fall. Things are progressing. Everyone take care with the planting season.
Bob Biehl, Belleville, St. Clair County: We’re back into that rainy May pattern we had for the past three years. We had 2.25-2.5 inches of rain as of Friday. About 1 inch of rain fell Thursday night and the skies were very black to the west Friday morning. Last weekend (May 9-10) and early in the week, there was some corn planted on acres that remained. A few isolated fields of beans were planted. There also was some spraying and sidedressing of corn. The little bit of wheat that is in the area is now headed out. Stands are thin in many places, but that’s OK. The world has too much supply anyway. Besides a wet forecast, there are no other major problems to report. Producers, after the last two years, are still riding so high from being completed with corn that I haven’t heard many concerns yet about when the beans will get planted. Kevin Raber, Browns, Wabash County: There were several days of fieldwork last week until rains came Wednesday night and Thursday morning. Varied amounts of 0.5 of an inch and up were common. Corn planting is all but done. There may be some replants to do. I’m not sure how far along bean planting is, but I would guess it is more than half done.
Ken Taake, Ullin, Pulaski County: It turned into a very busy week here in deep Southern Illinois. We had some light showers on Monday (May 10) and the weatherman kept threatening that we were going to get heavy rains, but they never materialized. We got back in the fields on Tuesday. We’ve been trying to sidedress corn and replant corn. There is a lot of replanting going on in our area. I’ve heard of at least one area farmer who is having to replant half of his corn crop. There also is quite a few beans that were planted before the heavy rains two weeks ago being replanted. We are trying to replant our corn. We’ve not gotten any beans planted yet. Hopefully, we will get that started soon. Fertilizer dealers had a problem keeping up with the demand, so sidedressing is going a little slower than we would like. Just hope the rain holds off and our progress will be a lot further along by my next report. Please remember to be careful during this busy season.
Recognizing corn growth stages after a frost BY BARRY NASH
Many areas in the northern two-thirds of Illinois received a light to moderate frost on two- to threeleaf corn between May 8 and May 10. It is important to recognize the actual growth stage of a corn plant — especially after a frost. Most agronomists agree that the best method for predicting the growth stage of a corn plant is to use Iowa State University’s method, which determines corn growth by Barry Nash the number of “true leaves.” A true leaf is defined as a leaf that arises from a node of a corn plant. Each growth stage is given a V or R number, which stands for either vegetative or reproductive stage. For instance, a V2 corn plant is one that has two leaves — each coming from a node on the stalk.
This method is considered the most accurate, since it accounts for the actual growth stage of the corn plant, not just the height. The same can be said about corn growth and development. Many postemergence, translocated corn herbicides are not labeled for applications beyond the V6 stage of growth. This is due to ear development that generally begins at V5-V6. In the case of corn exposure to frost, if a corn plant has lost all of its leaves, it’s possible that it is vegetatively more mature than it appears.
Did you know? Today’s farmer feeds about 144 people in the United States and abroad. In 1960, that number was 46. *** A 9 percent growth is expected in Illinois’ agricultural industry over the next 10 years.
For example, a 6-inch-tall corn plant actually may be at V5 to V8 or more in maturity, which means ear development has already begun. Many herbicide applications made later than V6 often can result in “pinched” ears or “beer-bottle” ears, all which can result in yield reductions. Right now, a good idea would be to make a list of the fields that were exposed to frost, and be sure to note their appropriate V stage of growth in case any plants actually lose their leaves in the next few days. This will help two to three weeks from now, when you forget which fields were damaged. At the very least, if you’re unsure of the corn plants’ V stage at application, split the stalk down past the growing point and count the nodes to ensure you actually know the true V stage of the plant. Barry Nash is GROWMARK’s weed science technical manager. His e-mail address is bnash@growmark.com.
FarmWeek Page 8 Monday, May 17, 2010
MARKETS
Biodiesel key in helping protect, feed planet? BY MARTIN ROSS FarmWeek
Citing environmental damage in the Gulf, the National Biodiesel Board (NBB) notes biodiesel is “less toxic than table salt and biodegrades as fast as sugar” and argues reinstating biodiesel tax credits would promote greener fuels. Meanwhile, a global soy nutrition consultant claims biodiesel is good for the world’s people as well as the planet Soy/biofuels interests continued to seek preMemorial Day congressional restoration of the $1-pergallon biodiesel blenders credit, which expired Jan. 1. The largely idled industry continues to languish in the fifth month of Senate delay, and “green jobs are being lost every day Congress neglects to act,” NBB CEO Joe Jobe said. “As we all wait in dread for the Gulf oil slick to wreak devastation on some
of the nation’s most sensitive wetland habitats, Congress’ inaction has left America’s non-toxic, biodegradable biofuel at risk of collapse,” Jobe warned. The U.S. Environmental Protection Agency recently recognized biodiesel as the U.S.’ first commercialized “advanced biofuel,” offering higher greenhouse gas (GHG) reductions even than corn ethanol. NBB pegs biodiesel’s 2009 contribution to reducing GHGs as equivalent to “removing over 774,000 passenger vehicles from America’s roadways.” Biodiesel produces 4.5 units of energy for each unit it takes to produce it — the highest energy balance and energy content of any current U.S.-produced renewable fuel. And by stimulating soy oil demand, biodiesel production creates new stocks of soy protein that can be tapped for hunger relief or
nutritional improvement in and, potentially, future exports to developing regions, according to Karen Coble Edwards, consultant with the World Initiative for Soy in Human Health and the World Soy Foundation (WSF). The roughly 247 million gallons of soy-based biodiesel produced in 2009 “co-produced” enough soy meal to generate 72 billion rations of protein for school feeding projects such as a recent WSF-supported effort in Ghana, Edwards said. “The National Soybean Research Laboratory says the world will need 75 percent more protein by 2030,” she told FarmWeek. “A lot of soybean oil needs to be coproduced to meet that demand. You can’t decouple the industry. “All the protein from a soybean grown for biodiesel is available for food. The more biodiesel acres, the more protein-rich food.”
ADM supports ‘E12’ blend as alternative to dual rule “E15” is the goal for corn and biofuels producers, but a major Illinois ethanol supplier recommends settling initially for E12 given oil and equipment industry pressure and potentially cumbersome federal limits on E15 approval. During Archer Daniels Midland Co.’s (ADM) quarterly earnings report, ADM CEO Patricia Woertz said U.S. Environmental Protection Agency (EPA) approval of a 15 percent ethanol gasoline blend waiver would greatly boost future ethanol demand. Conventional gasoline currently is limited to 10 percent ethanol, and Woertz suggested each 1 percent increase in that “blend wall” would add roughly 1.3 billion new gallons of ethanol to the market. However, amid challenges to higher-level blends especially from small engine/equipment manufacturers, the Decatur company feels an increase to E11 or E12 would be a smoother step toward higher blends. The Auto Alliance, the American Petroleum Institute, and the Outdoor Power Equipment Institute have asked EPA to delay action on the E15 waiver. Based on preliminary results of a testing program for use of blends higher than E10 with nonflex-fuel vehicles, those groups argue higher blends of ethanol have not been proven safe or effective. General Motors biofuel implementation manager Coleman Jones noted engine/vehicle and environmental testing is scheduled for completion in 2011. Jones argued “there’s no need for precipitous action when the scientific results are so close at hand.” Meanwhile, EPA itself has discussed approving E15 blends, but only for use in standard vehicles produced after 2000. Such a two-tiered market structure would fuel legal liability issues and added costs for fuel retailers, ethanol advocates warn. In a letter to the president, the national Renewable Fuels Association (RFA) sought an immediate move to E12 while E15 testing is being completed. EPA “seems hell bent on limiting (E15) to model year 2001 and newer vehicles,” RFA’s Matt Hartwig told FarmWeek. “Once (testing is) completed, we urge immediate adoption of E15 for all vehicles,” he said. “We also are urging the immediate adoption of E20 once that testing (of 20 percent ethanol) is completed, as well.” Hartwig did not expect an EPA decision until at least August. — Martin Ross
China purchases more U.S. corn; market rallies BY DANIEL GRANT FarmWeek
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The corn market rallied late last week as China was reported to have purchased 300,000 metric tons (about 12 million bushels) of U.S. corn. China, which in recent years has been a competitor of the U.S. in the world corn market, also purchased 4.5 million bushels of U.S. corn last month. It is believed six additional cargoes of U.S. corn totaling between 9.8 million and 11.8 million bushels also may have been China-bound prior to last week’s purchase, according to the U.S. Grains Council (USGC). “If this (most recent purchase) is true, and we certainly hope it is, we view it as good news,” said Thomas Dorr, president and CEO of USGC. “This may be the beginning of some opportunities to trade more consistently with China.” Some reports suggested the Chinese this year may import as much as 1.5 million tons (59 million bushels) of corn to ease supply issues and high corn prices in China. The Chinese corn crop reportedly suffered from drought last year. “We also know it’s been cool and wet this spring in China and, because (the Chinese) don’t access biotech hybrids, the likelihood their production will be down this year has been enhanced,” Dorr said. The U.S., on the other hand, should have ample corn available — USDA last week projected U.S. farmers this year will harvest a record-large 13.37-billion-bushel crop. “We’ve got a big crop coming,” Tim Lenz, president of the Illinois Corn Growers Association, previously told FarmWeek. “We need somewhere to go with it. We’re going to need to export more corn.” USDA last week projected U.S. corn exports this year will grow by 3 percent.
FarmWeek Page 9 Monday, May 17, 2010
ENERGY
Switchgrass mega-tract ‘living lab’ for cellulosics BY MARTIN ROSS FarmWeek
Oilman Lloyd Noble founded The Samuel Roberts Noble Foundation in the wake of Oklahoma’s “Dust Bowl,� stunned by the impact of poor farming practices on the state’s land and economy. Decades before “green� became a social mantra, Noble sought improved sustainability, offering free consultation for regional farmers and ranchers. Now, his foundation hopes to foster green energy in the heart of Oklahoma oil country. In 1988, the foundation launched a plant biology division, exploring “the fundamental
gene and genomic workings of the plant� to improve livestock diets, foundation spokesman Adam Calaway related. A forage improvement division emerged in 1997, and combined breeding/genetics work spawned 12,000 acres of research/demonstration plots and, ultimately, interest in fuel as well as feed. The Noble Foundation joined the University of Oklahoma and Oklahoma State University in 2007 to form the Oklahoma Bioenergy Center (OBC), obtaining 1,000-plus acres for the world’s largest contiguous switchgrass production tract. The OBC’s
state-funded efforts were featured with other global bioenergy projects at a May biotech conference in Chicago. “We’d gotten into looking at switchgrass as a range management tool,� Calaway told FarmWeek. “It was one of those plants that predated Oklahoma, one of those plants we tilled under to plant cotton and wheat and all that. Then, President Bush mentioned it in his State of the Union, and people started looking for people who were working with switchgrass. “A lot of people scrambled to put research projects together. Oklahoma did some-
thing smart: It found institutions that had agricultural ties, and we combined efforts.� The Noble Foundation focuses on switchgrass production and improvement, while the University of Oklahoma is eyeing biofuels processing efficiencies. The foundation is working with the state’s growers to determine how switchgrass can fit into existing operations. One such relationship spurred the Hitches, a longstanding Oklahoma farm family, to provide land for switchgrass research in the state’s western panhandle. St. Louisbased biomass ethanol pioneer
Abengoa Bioenergy USA is building a biorefinery less than 35 miles from the plot, in Hugoton, Kan. While corn has been “bred and bred,� scientists have merely begun to plumb switchgrass improvements, Calaway said. Researchers are evaluating fertilization, harvest strategies, and other agronomic considerations. “We’re learning what it takes to put it in the ground and get it out of the ground,� Calaway said. “The other thing is, it’s important to show people what this is. This living laboratory is also a living classroom.�
Greener grass two ways via Australian research? Genetically “supercharged� grasses from Down Under could help amp up the energy potential of livestock forages and the bioenergy potential of grasses. That’s according to German Spangenberg, biosciences research executive director with the Victoria (Australia) Department of Primary Industries. Spangenberg and his colleagues have focused on “fructan biosynthesis� — “reprogramming� plant cells to boost carbohydrate/sugar production from sunlight, thus providing added energy and more efficient feed con-
version especially in lactating cows. Ideally, the technology also should produce biomass grasses that yield more gallons of biofuels per ton. One of the major obstacles in commercializing biomass ethanol lies in breaking down the lignocellulose (fiber) in grasses and woody material. The Victoria research unlocks more accessible sugars for processors to ferment into fuel. Spangenberg noted success in tweaking perennial ryegrass and tall fescue, two key southern Australian dairy forages. “Obviously, the applications are broader than that,�
Australian scientist German Spangenberg displays modified forage grasses that someday could energize global dairy production and cellulosic biofuels development. By applying genetic technology to temperate grasses such as perennial ryegrass and tall fescue in greenhouse and field trials, scientists in southern Victoria have spurred significantly higher dry matter biomass yields. “Recent trials have recorded a doubling of plant biomass double compared to existing varieties,� Spangenberg said.
he told FarmWeek at a global biotechnology conference in Chicago. “One, it could be used in other grasses for the grazing industries, particularly in warmer climates. It also could be used in dedicated bioenergy grasses such as miscanthus or switchgrass.
“We’re pursuing deploying (energy) technologies we’ve initially developed for the grazing industry and applying those in a more global context, not only for the benefit of Australia but also for the benefit of the planet, in the dedicated bioenergy sector.�
Spangenberg and company have undertaken the world’s largest field production trials of biotech forages over the past two seasons. However, because supercharged grasses are genetically modified, livestock feeding trials have not yet begun. — Martin Ross
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FarmWeek Page 10 Monday, May 17, 2010
PRODUCTION Five-county area
Cover crop project to pilot new technology, practices
BY KAY SHIPMAN FarmWeek
Cover crops are a win-win for farmers and the environment. Farmers may use cover crops to help absorb excess soil nutrients, add nitrogen, suppress soil pathogens, or reduce soil compaction. In addition, cover crops can improve soil and water quality and help control erosion. A new Central Illinois cover crop project seeks to increase acres planted with cover crops by providing farmers with technical expertise, cost-share funding, and access to a unique seeder. The project is open to all types of tillage and cropping systems in Ford, LaSalle, Livingston, Macon, and McLean counties. “We’re shooting for all tillage types, particularly notill,� said Dave Bishop,
resource conservationist with the McLean County Soil and Water Conservation District (SWCD). The five county SWCDs
‘We’re shooting for all tillage types, particularly no-till.’ — Dave Bishop McLean County Soil Water Conservation District
will explain the initiative June 15 during an 8 a.m. free breakfast meeting in Heartland Community College’s auditorium, Normal. Interested farmers should contact one of the SWCD
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offices by June 8. The unique seeder is being fabricated by Don and Matthew Birkey, a father-son team from Gibson City, who operate On Track Farming Inc. The Birkeys are adapting a four-wheel Ag-Chem RoGator to allow seeding in standing corn in August. That machine is used primarily in the South for spraying and dry fertilizer application. “The idea is to spread legume seed (using air) in tall, standing corn,� Don Birkey explained. “The air machine gives a good even coverage of the product ... We’re stepping out on the edge. These machines are not used for this (seeding) but the application should work.� In Central Illinois, cover crops need to be seeded in August or they don’t get
Anderson of the University of Illinois will discuss why farmers should plant cover crops and how to plant them. For more information or to register, contact the Ford County SWCD at 217-3792372, the LaSalle County SWCD at 815-433-0551, the Livingston County SWCD at 815-844-6127, the Macon County SWCD at 217-8775670, or the McLean County SWCD at 309-452-0830.
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enough growth to survive the winter, Bishop noted. During the June 15 meeting, the project organizers will discuss the availability of federal Environmental Quality Incentives Program (EQIP) funding to defray seed costs and state funds that will help with the application. Seed vendors will display their products at the meeting. Joel Gruver of Western Illinois University and Dan
Registration Regist tration Fees: Individual golf & banquet banquet........... ....................$130 .........$130 Banquet only o ..........................................$50 only............................... ...........$50 Reser vatio on Form & event detailss online at: Reservation
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Poison hemlock, a non-native species, is found throughout Illinois. All parts of the plant, which usually grows two to four feet in height, are poisonous. (Photo by William and Wilma Follette at USDA-NRCS PLANTS Database)
Be aware of poisonous hemlock Poison hemlock’s looks can be deceiving, but its common name says it all. Poison hemlock is a tall plant with fern-like leaves and white flowers. A member of the carrot family, poison hemlock is not native to Illinois, but can be found across the state. It also lives up to its name. All parts of the plant are poisonous. Poison hemlock is a biennial plant that produces leaves one year and flowers and seeds the next year, said John Taft, a plant ecologist with the Illinois Natural History Survey. One tell-tale characteristic to distinguish poison hemlock from similar plants is its purple-spotted stem, Taft noted. Poison hemlock does not like competition with other plants and grows well in areas with full sunlight and fertile soil. Taft advised it may be found growing along roadsides, railroad rightsof-way, and the borders of woodlands. Spring is the primary time when livestock may be poisoned by grazing on poison hemlock, because it is more palatable then, according to the Purdue University School of Veterinary Medicine. The toxicity increases throughout the growing season with the roots becoming toxic later in the year. Farmers who grow forages should note that even dried hemlock plant parts remain poisonous. Cattle may be poisoned by eating one to two pounds of poison hemlock; sheep, a half pound or less; and horses, four to five pounds, according to the Purdue Vet School. Poisoned animals will start trembling and show signs of poor coordination within two hours of eating the plant. In addition to the non-native hemlock, Illinois also is home to the native water hemlock, which is a wetland plant that grows in marshes and also is poisonous, Taft said. More information about poison hemlock is available online at {http://plants.usda.gov/java/profile?symbol=CIMA2}. — Kay Shipman
FarmWeek Page 11 Monday, May 17, 2010
AROUND ILLINOIS
TREASURE TROVE: BY KAY SHIPMAN FarmWeek
The University of Illinois Library unlocked a treasure trove of agricultural history by digitizing its world-class collection of farm newspapers from the late 19th through early 20th centuries. “I’m very passionate about this (printed) material. It’s very rich and underutilized,” said Mary Stuart, U of I history, philosophy, and newspaper librarian. Anyone with Internet access may view the dozen newspapers online at {www.library.illinois.edu/dnc}. Click on the “Farm Field and Fireside Collection.” Previously, the newspapers’ information essentially wasn’t usable, according to Stuart. The papers themselves are very brittle and in bound volumes. Plus, the newspapers weren’t indexed, so someone could only search for information based on a publication date. By using the website menu, an Internet user may browse the newspapers by date or search articles, advertisements, and photo captions by keyword. Articles also may be printed, downloaded, or e-mailed. From a historian’s perspective, the
farm newspapers contain valuable information for the study of education, agricultural journalism, American literature, and even immigrant labor, Stuart said. The newspapers also provide a social context of farm life during that period — a “lost heritage,” according to Stuart. “You get a palpable sense of life on the farm. You get a real sense of how people thought,” Stuart said. “For me, one of the big surprises was that farm newspapers are very different from small town newspa-
U of I library makes lost farm newspaper heritage accessible pers,” she said. The information not only was directed toward an agricultural audience,” but it also was pitched at different ag audience sectors, such as farm wives and farm children, Stuart noted. The newspapers sought to interact with readers by offering contests and publishing letters to the editor and opinion polls, she said. For example, a farm wife newspaper ran a survey that asked farm wives if they wanted their daughters to marry farmers. The outcome was overwhelmingly
yes, according to Stuart. “That goes contrary to the urban myth that everyone wanted to get off the farm,” she said. Farm newspapers provided a variety of information from health and hygiene tips to romance fiction series for women. To help modern readers discover unexpected information, the U of I’s History, Philosophy, and Newspaper Library created subject guides for specialized topics, including rural school reform, women’s fiction, Indian lands, and immigrant labor. The dozen newspaper titles now available online represent one-500th of the U of I’s collection, according to Stuart. In July, the library will post another four newspapers: “Banker Farmer,” which was published in Champaign, “Chicago Packer,” “Chicago Livestock World,” and “Western Rural/Western Rural and American Stockman/National Rural.” Additional titles will be added as funding becomes available. Stuart said she hopes agribusinesses and others will support the project. “This is just the tip of the iceberg,” Stuart said of what is available to date.
FROM THE COUNTIES
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UREAU — The Women’s Committee will sponsor a health fair from 9 a.m. to 4 p.m. Wednesday, June 2, at the Farm Bureau office. A booth highlighting membership benefits such as the Proctor Hospital discount, Beltone discount, and prescription drugs will be set up. The Lifeline Screening Program, which includes non-invasive screenings for vascular diseases, will be held. Call for an appointment at 800-324-1851 for the tests. Call the Farm Bureau office at 815-8756468 for more information. OOK — The Commodities/Marketing Team will sponsor a family field trip Thursday, June 24, to the Fair Oaks Dairy Farm in Indiana. The bus will leave the Farm Bureau office at 8 a.m. and return by 4:30 p.m. Cost is $35 for adults and $25 for children. Nonmembers cost is $40. Call the Farm Bureau office at 708-354-3276 for reservations or more information. • The Member Relations Team and the University of Illinois Extension will sponsor a workshop on “Preparing Wills and Trusts and Transferring Non-Titled Property” from 7 to 9 p.m.
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Tuesday, June 29, at the Farm Bureau office. Call the Farm Bureau office at 708354-3276 for reservations or more information. EWITT — The deadline for the Farm Bureau trip to San Diego, Calif., is Monday, May 24. Call the Farm Bureau office at 217-935-2126 for more information. • The Prime Timers will meet at 10 a.m. Friday, May 28, at the Farm Bureau office. Jackie Jones, Illinois Farm Bureau’s education manager for Agriculture in the Classroom, will be the speaker. A potluck lunch will follow. Call the Farm Bureau office for more information. AYETTE — The second annual National Trail “Old Capital Run” poker run will begin at 10 a.m. June 19 in Collinsville and Marshall, and riders will meet at noon in Vandalia. This is a fundraiser for ag literacy to support Bond, Clark, Cumberland, Effingham, Fayette, Jasper, Madison, and St. Clair counties. Those paying a $10 early bird entry fee by Wednesday will receive a T-shirt. Register online at {www.aglit.org} or any Farm Bureau office in the counties listed above.
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ENRY — The Henry/Stark Safety Camp for children in grades 3 to 6 will be Monday, June 14, at Black Hawk East. Cost is $5. Deadline to register is Thursday. Call the Farm Bureau office at 309-9372411 or the Henry-Stark Extension office at 309-8531533 for registration forms or more information. • Henry and Stark County Farm Bureaus will sponsor their annual golf outing Friday, June 11, at Baker Park Golf Course, Kewanee. Cost is $35 for members and $55 for non-members. Included are golf, cart, $5 lunch ticket, and a donation to Agriculture in the Classroom in Henry and Stark counties. Call the Farm Bureau office at 309-9372411 for tee times or more information. ASALLE — The Marketing Committee will sponsor a trip Thursday, July 22, to the Quad Cities. The group will tour the John Deere Harvest Works and the Pavilion and gift shop, take part in the Deere home tours, visit the Quad City Botanical Center, and have dinner on the Celebration Belle boat. Cost is $85 for members and $95 for nonmembers if paid by July 1.
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After July 1, the cost is an additional $5. Call the Farm Bureau office at 815-4330371 or visit the website at {www.lasallecfb.org} for reservations or more information. ADISON — Farm Bureau Women for Agriculture will sponsor a “shred day” from 9 to 11 a.m. Saturday at the Farm Bureau office. The service will be provided by Cintas Document Management Corp. and is open only to Farm Bureau members. Call the Farm Bureau office at 618-656-5191 for more information. IATT — The Women’s Committee will sponsor a hearing screening from 10 a.m. to 2 p.m. Tuesday at the Farm Bureau office. Call the Farm Bureau office for more information. • The Wildlife Committee will sponsor a photo contest for 8 x 10 photos taken between July 2009 and June 2010. Two categories will be judged: Piatt County wildlife and habitat. Entry fee is $5 for member and $10 for non-members. Entry forms are available at the Farm Bureau office. Deadline to enter photos is June 15. Call the Farm Bureau office for
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more information. • Farm Bureau will sponsor a bus trip to St. Louis Friday, Aug. 13, to see the Chicago Cubs vs. the St. Louis Cardinals. Cost is $85. Call the Farm Bureau office at 762-2128 for reservations or more information. TARK — The Henry/Stark Safety Camp for children in grades 3 to 6 will be at 8:30 a.m. June 14 at Black Hawk East. Cost is $5. Call the Farm Bureau office at 309-286-7481 by Thursday for reservations or more information. • Stark and Henry County Farm Bureau’s will sponsor their annual golf outing Friday, June 11, at Baker Park, Kewanee. Proceeds will benefit each county’s Agriculture in the Classroom program. Cost is $35 for members and $55 for non-members, which includes golf, cart, and lunch. Call the Farm Bureau office at 286-7481 by June 7 for tee times or more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county manager.
FarmWeek Page 12 Monday, May 17, 2010
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FarmWeek Page 13 Monday, May 17, 2010
COMMODITIES Record-large corn crop seen
Boost to ending stocks could keep lid on prices BY DANIEL GRANT FarmWeek
Corn and soybean farmers no doubt are pleased with the good start to the growing season. But high yield expectations likely won’t bring them much higher prices for their crops any time soon. USDA last week projected U.S. farmers this year will harvest a record-large 13.37-billion-bushel corn crop com-
pared to 13.11 billion bushels last year. Corn production was expected to set a new record based on an average yield projected at 163.5 bushels per acre, 2.7 bushels higher than the trend from 1990 through 2009. “It (achieving the lofty yield projection) is going to require ideal conditions moving forward,” said Darin Newsom, DTN senior analyst. “On the flipside, if we don’t get ideal
weather (USDA) possibly is putting too much importance on the planting season.” Meanwhile, the ag department projected U.S. farmers this season will produce another large soybean crop (3.31 billion bushels) compared to last year’s record 3.36-billion-bushel crop. The national soybean yield was projected to average 42.9 bushels per acre, which would be down 1.1 bushels from last
year’s record yield. The large crops are expected to weigh heavily on the markets. USDA projected the ending stocks between 2009/10 and 2010/11 will increase from 1.738 billion to 1.818 billion bushels for corn, from 190 million to 365 million bushels for beans, and from 950 million to 997 million bushels for wheat. “Unless something happens to production here in the U.S. or elsewhere around the world,
Deadline approaching for CSP sign up Landowners have until June 11 to sign up for the Conservation Stewardship Program (CSP). Farmers and landowners who have considered applying for CSP should contact their local Natural Resources Conservation Service (NRCS) field office, according to Illinois State Conservationist Bill Gradle. Recently, USDA announced June 11 will be the national
cutoff date, which will require potential applicants to submit applications quickly. CSP is a voluntary program that encourages farmers to maintain existing conservation activities and adopt new ones. “We’ve had good interest in CSP last year and this year, but we did not reach all the producers this program was designed to reach,” Gradle said. He noted the sign-up process is more streamlined
EZRegs updates information on key ag environmental rules University of Illinois Extension specialists recently updated their EZRegs website with new information on key agricultural environmental rules. The website identifies environmental regulations for various agrelated sectors, including producFarmWeekNow.com tion of livestock, food crops, and Visit FarmWeekNow.com to view ornamental horticulture; landthe EZRegs website and see how scape maintenance; and smallnew environmental regulations scale animal facilities. may impact your farm. The site is at {www.ezregs.illinois.edu}. “Finding information on state and federal environmental regulations can often be difficult and confusing,” said Ted Funk, U of I Extension agricultural engineer. The website allows users to find frequently asked questions that will help them determine which rules may impact them and how, Funk noted. New recently added information includes U.S. Environmental Protection Agency (EPA) record requirements related to continuous air emissions of ammonia and hydrogen sulfide from livestock facilities. The rules identified include the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA). “In Illinois, large livestock operations must complete the appropriate forms and provide them to the state emergency management agency as well as their local emergency planning committee,” Funk said. “There is no cost for compliance other than the time it takes to fill out the forms, but there could be a high cost to your operation if you ignore the EPCRA regulation requirements,” he added. Additional new information covers EPA regulation on oil spill prevention and control — specifically the Oil Spill Prevention, Control, and Countermeasure (SPCC) Program. This program calls for farmers and other facilities to have an oil spill prevention plan. “If an agricultural operation has a big fuel tank that springs a leak and there’s a possibility of it getting into surface waters, a plan needs to be in place,” Funk said. “Facilities becoming subject to this regulation requirement must be in compliance by Nov. 10. We are trying to get the word out to farmers.” The Illinois Pork Producers Association, Pork Checkoff, and U.S. EPA Region 5 have provided funding for the EZRegs website.
than the one used for its predecessor, the Conservation Security Program. Producers and farm families who have maintained conservation on their farms over the years or those who included more eco-friendly management strategies on their operations over the last few years are rewarded through CSP. CSP pays farmers to maintain those successful practices and it helps add even more practices that protect soil, water, and related natural resources. “I know Illinois has more
landowners and producers who are committed to conservation because I see evidence of it on the land every day,” Gradle said. “If you are one of those stewards of the land and you think it might be time to partner with NRCS to do even more of the right thing, I urge you to visit with your local NRCS staff and tell them all you’ve done.” For more information, contact your county USDA Service Center or go online to {www.il.nrcs.usda.gov}.
we’re really moving into an era where supplies will be a little more plentiful,” Dale Durchholz, AgriVisor market analyst, told the RFD Radio Network. “Basically that says prices could be a little softer.” Newsom had a bearish outlook for soybeans and wheat prices and a neutral-to-bearish outlook for corn prices. “The size and volume of supplies on hand domestically and globally give it a bearish look,” Newsom said of the wheat market, which didn’t gain much traction last week even though U.S. winter wheat production was projected to fall by 4 percent. The corn market, though, could be supported in coming months by increased demand. The ethanol industry this year was projected to consume 4.6 billion bushels of corn compared to 4.3 billion bushels last year. And corn exports were expected to rise by 3 percent. Soy exports, on the other hand, were projected to decline from a current record 1.455 billion bushels to 1.35 billion bushels.
FarmWeek Page 14 Monday, May 17, 2010
PROFITABILITY
Social media: risks and rewards for farmers BY PETE TROTTER
When Pa Ingalls plowed his fields in the Little House on the Prairie days, his consuming task was to plow a straight furrow. The modern Pa Ingalls can do that and more while driving a 500-horsepower tractor with advanced tools such as GPS, mechanical diagnostics, and Pete Trotter implement management. Perhaps the most radical tool available to the modern farmer is the mobile phone. As a farmer works his field, he can now talk to landlords, employees, and family, and the entire electronic world is at his fingertips.
Farmers can communicate by e-mail, text message, Facebook, or Twitter, even as his machine lays down the perfect furrow. This allows the farmer to join a global community which includes 400 million Facebook users and nearly 50 percent of the population of some countries. Social media creates great opportunities for business. Businesses connect with their customers, share new products, identify customer preferences, track trends, and increase sales. Businesses also can use social media to improve employee hiring and communication, increase productivity, speed problem resolution, and enhance efficiency and performance. For the farmer, social media provides new methods of
Survey to gauge farmers’ interest in selling food to schools Farmers’ input is being sought in an “Illinois Farm to School Survey” conducted in partnership with Northwestern University’s program on “Learning and Organizational Change.” To take the online survey, go to {www.farmtoschool.org/IL/survey.htm}. Survey information will be used to: • Identify schools, parents, and farmers who would like to change how schools feed children; •Identify schools and farmers who already are supplying locally grown food to students; •Identify barriers to providing locally grown foods to schools; and •Gather data to impact food policy and to seek funding to help schools and farmers.
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 $35.10-$50.00 $41.27 n/a n/a n/a n/a This Week Last Week 18,732 28,637 *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 $83.30 $85.46 $61.64 $63.24
Change -2.16 -1.60
USDA five-state area slaughter cattle price Steers Heifers
This week $99.97 $99.12
(Thursday’s price) Prv. week Change $99.99 -0.02 $99.67 -0.55
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) This week Prev. week Change 112.55 112.96 -0.41
Lamb prices Confirmed lamb and sheep sales This week 910 Last week 1285 Last year 587 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $116. Good and choice 1-2: 60-90 lbs., $135. Slaughter Ewes: Utility and good 1-3: $43-$45. Cull and utility 1-2: $40-$43.
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 05-06-10 5.3 20.8 29.8 04-29-10 8.0 17.9 33.5 Last year 10.8 11.8 46.5 Season total 1309.8 794.9 1190.8 Previous season total 1035.3 932.3 1157.1 USDA projected total 1420 825 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
marketing, information collection and sharing, and networking with other farmers. On a more practical level, social media and Internet tools allow a farmer to communicate, monitor weather conditions, and arrange and track commodities transactions while seated in the tractor. However, with this progress comes peril. New opportunities create new legal risks for the modern farmer. They include the following: • Privacy – An illusion of privacy is pervasive among the users of social networks, permitting abuse and identity theft. • Employment – Constant
tension exists between employee privacy rights and the need to monitor employee actions and protect company assets. • Informality – Electronic communication is perceived as conversational but is permanent digital data which can be used as evidence in litigation (so libel, defamation, confidentiality, and other problems arise). • Ownership – The public nature of social media creates confusion over copyright, trademark, and other ownership issues related to published information. •Newness – Existing laws do not specifically contemplate
social media, and the interpretation of existing laws and the creation of new regulations will take time and remain unpredictable. Despite these risks, farmers should welcome the new opportunities presented by social media, taking care regarding information shared and collected, and paying attention to developing rules as the law tries to keep pace with the rapidly changing technology. Pete Trotter is GROWMARK’s assistant general counsel. His e-mail address is ptrotter@growmark.com.
Analysts: Outside markets will continue to affect ag BY DANIEL GRANT FarmWeek
Farmers tracking the prices of their commodities should follow more than just supply and demand numbers. Analysts last week projected everything from the world economy and outside investments to the value of the dollar will continue to affect the price of ag-related products. Darin Newsom, DTN senior analyst, last week after USDA released a “bearish” monthly crop report, said traders quickly would “shift their focus back to the Dow Jones, crude oil, and world markets.” The stock market impacted commodity prices this month when the Dow Jones briefly experienced a 1,000-point drop, which was blamed on a combination of human error and a computer glitch. The Dow quickly recovered last week and posted its largest daily gain (404 points) in more than a year when the European Union (EU) agreed to create a rescue fund, valued at $850 billion to $1 trillion, to support European nations burdened by heavy debt. “The markets were calmed (by the news from Europe), but over time there is a lot of uncertainty over how all of this will work out,” said Mike Doherty, Illinois Farm Bureau senior economist. The EU has a common currency, but unlike the U.S. it does not have a central government. It, therefore, could struggle to make adjustments during implementation of the rescue, it could put the European Central Bank at risk, and there is a possibility of higher interest rates and inflation down the road, according to the economist. The financial crisis in Europe, along with the recession and troubled housing market in the U.S., could have at least one positive affect on
ag, though. Farmland continues to attract outside investors as a “stable, long-term investment,” Doherty said. Meanwhile, the economy will play a key role in the future direction of commodity prices. Economic growth in Asia recently was credited for increased sales of U.S. ag products. The situation in the
U.S. also appears to be making gains. The National Restaurant Association’s Restaurant Performance Index showed consumer spending on the hospitality industry (foodservice and accommodations) increased by 8 percent during the first quarter of 2010. It was the first time the index grew since September 2007.
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FarmWeek Page 15 Monday, May 17, 2010
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Grain supplies still ample Even though the world has to traverse the critical part of the summer growing season, USDA’s first forecast of the fundamental structure for the coming year projects more than adequate production to meet demand. The stocks-to-use ratio of each of the major grains is expected to remain about the same as it will be at the end of this marketing year. However, the actual stocks of wheat, coarse grains, and oilseeds is expected to grow slightly. Looking beyond the initial estimates for U.S. crops and balance sheets, the supplies of both wheat and coarse grains outside of the United States is expected to increase yet again. For oilseeds, the foreign supply may tighten a little, but much of that can be traced to the continued increase in Chinese soybean imports. Lest corn producers get too excited about the possibility of
Basis charts
seeing big Chinese corn imports, it’s important to recognize that outside of the U.S. wheat is a feed as well as a food. In the case of China, wheat stocks are thought to be about one-half of what they produce and consume each year. They easily could boost wheat feeding 20 million metric tons (734 million bushels), and still have a “comfortable” supply of wheat. That’s triple what they are already expected to feed and equivalent to 20 percent of the coarse grains they are expected to feed. In the present price structure, though, they would be better off to export wheat and import corn. Depending on where wheat would be shipped, a 50-cent narrowing of the price difference would bring values to a level at which it may be more attractive to feed the wheat. The fiscal problems of some European countries also make for a very uncertain economic climate over the next few months. While food demand tends to be good at times of economic weakness, these fiscal problems pose a picture unlike any other in recent years. One cannot be certain what impact these issues will have on demand, and maybe more important, on currency values. In the end, it’s probably going to take a significant production problem somewhere in the world to reverse the sideways-to-lower trend in grain prices. Even if we don’t have that, we expect to see one or two weather scares, especially in the U.S., to use for pricing opportunities. AgriVisor endorses crop insurance by
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2009 crop: Despite the recent strength in the corn market, prices have not altered the picture indicating the general trend is down. Cycle counts still point to a 40-week cycle bottom in June. You should have completed sales last week. If not, use rallies to do so. 2010 crop: Use strength to make catch-up sales, unless December futures have fallen below $3.75. Even though we expect a lower trend into early summer, there should be one or two opportunities to make sales during the summer. Fundamentals: Chinese buying has been the primary factor behind recent price strength. Rumors circulated of additional cargos being sold. But by week’s end, there were indications significant buying may not occur unless something happens to the Chinese crop this summer. The recent supply/demand report had a slightly positive impact with ending stocks reduced to 1.738 billion bushels. But, that’s still a comfortable supply of corn.
Soybean Strategy 2009 crop: News surrounding the Chinese corn purchases limited selling interest in soybeans, but the market has done nothing to indicate prices will not decline more into the early to middle June cycle low. Use strength to wrap up old-crop sales. 2010 crop: Even though we expect further weakness into June, we expect opportunities in the summer to add to sales and make catch-up sales. We’d defer making sales at this time, unless something unexpected would spark a November rally back to $9.50. Fundamentals: Planting may have been temporarily slowed by the wetter weather. But, forecasts for warmer, drier weather across the Midwest should allow the pace to accelerate, enough to keep the overall pace near the record established in 2000. Old-crop export sales and shipments are slowing, opening the door
to the possibility USDA might have to revise its forecast lower.
Wheat Strategy 2009 crop: Chicago July futures slipped below their $4.97-$5 support. This suggests the trend is turning lower . A drop below $4.70 would confirm prices are headed down into the seasonal and 40-week cycle lows expected in June or July. If you still have oldcrop inventories, complete sales now. 2010 crop: Chicago July
futures reached our $5.15 price target, boosting newcrop sales to 40 percent. If you price wheat at harvest, get those sales up to 60 percent now. Use rallies for catch- up sales. Fundamentals: The general fundamental structure in wheat remains unchanged. Recent strength was tied to strength in corn prices. It will be difficult for wheat to rally unless it has support from outside influences with new-crop ending stocks forecast to reach a 23-year high near 1 billion bushels.
FarmWeek Page 16 Monday, May 17, 2010
PERSPECTIVES
Can we talk? A recent article in the San Francisco Chronicle, “Battle Over Slow Food Heats up in Heartland,” highlighted our nation’s agricultural diversity. The article illustrated how the “tiny but fast-growing” number of farms that sell local and grow organic food contrast with “commodity farms that make up the great bulk of production and sell into a global food chain.” The closing quote of the article, by California dairy farmer Ray Prock Jr., cut to the heart of much of the discord in the farming and ranching community today and even offered a solution. “Instead of automatically thinking conventional ag is the enemy, CYNDIE and instead of conventional ag SIREKIS always thinking that organic and local food is the enemy, we need to sit down and figure out where we can work together,” Prock said. Fortunately for Prock and others who are likeminded, addressing erroneous beliefs that have led some to think of any form of agriculture as “the enemy” got a little easier with the recent release of the latest National Resources Inventory (NRI) report from USDA’s Natural Resources Conservation Service. The NRI is a compilation of a broad range of 50 years of data related to the environment, U.S. land use and productivity, water consumption, and many other factors.
The massive NRI survey results clearly show that farmers and ranchers are careful and caring stewards of our nation’s natural resources. They are producing more food using fewer resources. In fact, farm and ranch productivity has increased over the past two and a half decades, while at the same time environmental performance and water quality have been improving. The shrinking environmental footprint of food and fiber production in the United States is the envy of the world. A few key examples from the NRI survey tell the story. While farm and ranch productivity has increased dramatically since 1950, the use of resources (labor, seeds, feed, fertilizer, etc.) required for production has declined markedly. In 2008, farmers used 2 percent fewer inputs while producing 262 percent more food, compared to 1950. Dairy cow milk production on farms operated by Prock and his fellow producers has become more efficient since 1980. The pounds of feed each cow needs to consume to produce 100 pounds of milk has decreased by more than 40 percent on average in the last 30 years.
Since 1982, U.S. land used for crops has declined by 70 million acres. Conservation tillage, a way of farming that reduces erosion on cropland while using less energy, has grown from 17 percent of land area (acres) in 1982 to 63 percent currently. Careful stewardship by America’s food producers spurred a nearly 50 percent decline in erosion of cropland by wind and water since 1982. Fifty years of data tell the story — farm and ranch families, most of whom fall under the “conventional ag” umbrella, care for our natural resources while feeding our nation. Let’s not let another 50 years go by without making Prock’s plea for civil discourse among all types of food producers a reality. Cyndie Sirekis is director of news services at the American Farm Bureau Federation. Her e-mail address is cyndies@fb.org.
Lambsquarters — What an incredible, edible weed Farmers and gardeners alike are familiar with lambsquarters because it is one of those weeds that sprouts up in all manner of disturbed and cultivated areas. It starts in late spring and then continues all the way through MARI summer. LOEHRLEIN This year, with the unusual stretch of warm weather we’ve been having, I am already seeing lambsquarters seedlings in my vegetable garden. It is easy enough to remove them right now while they are small.
But if you wait until they are a bit larger, pulling this weed can provide an extra sense of accomplishment once you realize that your efforts will be rewarded with a nutritious and tasty treat –- because you can eat this weed. People usually don’t think of leafy weeds when they think of protein. That’s one of the reasons lambsquarters is such a surprising plant. According to NutritionData {www.nutritiondata.com}, one cup of cooked lambsquarters has 6 grams of protein. Of the recommended daily amounts (RDA) of various nutrients, lambsquarters has 281 percent for vitamin A, 111 percent for vitamin C, 46 percent for calcium, and 4 grams
LEADER TALK: What opportunities do you foresee for farmers? Editor’s note: Members of the Illinois Farm Bureau GrassRoots Issue Teams (GRITs) were asked for their views on several questions. Their responses will appear periodically on the Perspectives page.
“Increasing global market demand for U.S. ag products. Agriculture becoming a more powerful, political
of dietary fiber. In comparison, one cup of cooked spinach has 5 grams of protein, 377 percent of the RDA of vitamin A, 29 percent for vitamin C, 24 percent for calcium, and it also has 4 grams of dietary fiber. Both are impressive nutritionally. In the garden, these two plants complement each other because spinach is a cool-season plant, while lambsquarters is a warm-season plant. Lambsquarters, known by its botanical name Chenopodium album, is an American native that has long been used medicinally as well as for culinary purposes. The species term “album” refers to the white powdery substance
found on the undersides of leaves. If you decide to try eating this weed from your garden, you will know whether chemicals have been applied and the appropriate harvest interval. However, if you collect it from roadsides or other places, use caution, in case of pollutants or other chemical contamination. Once you have identified the plant and are certain it is chemically safe, you may harvest leaves by grasping the top of the stalk in one hand and running your other hand downward on the stalk. Lambsquarters may be steamed or sautéed, and can replace spinach in any recipe. For example, I have made deli-
cious flaky turnovers filled with lambsquarters and cream cheese, folded sautéed lambsquarters into omelets, and added lambsquarters to marinara sauce served over pasta. You can simply sauté the leaves in olive oil with a little garlic and soy sauce for a quick side dish. Add salt and pepper to taste. This year, when the lambsquarters sprouts up around your garden or field, why not turn from a farmer into a forager and enjoy earth’s freely given bounty?
“Educating the public on the efficiencies and practices involved in producing grain and livestock.”
“Being part of the solution for independence from foreign oil.”
“Expand ag exports, raise commodity prices, and hopefully increase profits to the American producer.”
Mark Hines McLean County
Jeff Schone Scott County
Steven Becker Clinton County
Mari Loehrlein is a horticulture professor in the School of Agriculture at Western Illinois University, Macomb. Her e-mail address is MM-Loehrlein@wiu.edu.
force.”
Tom Feltes DuPage County