Some truCkIng ISSueS have been resolved for farmers, but others need congressional clarification, according to AFBF. ................3
the drought and abnormally dry conditions in the wheat growing regions of the state are a concern to wheat producers. ......11
A joLIet junIor college student had an unusual internship on the Montana ranch owned by a former Illinois resident. ...............16
Monday, September 19, 2011
Two sections Volume 39, No. 38
Crop insurance support strong in the Beltway BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
Not much is certain on Capitol Hill these days, with a 12member “super committee” holding the purse strings of and possibly even the policy playbook for the next farm bill. But Illinois Farm Bureau Leaders to Washington last week found broad bipartisan consensus on one key policy point: Direct payments may be in for a direct budget hit, but a rough U.S. crop season has driven home the need for a continued farm safety net featuring crop insurance. Leaders offered lawmakers a preview of IFB Farm Policy Task Force recommendations up for IFB board consideration this week. The plan seeks to offer growers a “simplified” farm revenue program and maintain existing crop premium subsidies. “Crop insurance is going to be the centerpiece of the next farm bill,” USDA Risk Management Agency (RMA) Deputy Administrator Michael Alston
told the Illinois producers. U.S. Sen. Dick Durbin, a Springfield Democrat, offers bleak prospects for continued direct payments but sees improved crop insurance as an economic necessity, arguing “the alternative is disaster assistance.” Ogle County Leader Daryl Cave argued crop insurance “guarantees us that if we pay a premium, we can farm for another year.” “The more money we can get into crop insurance, where people are covering their losses thoughtfully, the better off we are,” Durbin said. ‘Super’ savings or sequestration? Safety net funding depends in part on the bipartisan super committee, which must identify $1.5 trillion in 10-year deficit reductions by Thanksgiving. Committee members “don’t know that much about farm policy,” said American Farm Bureau Federation’s Mary Kay Thatcher, who urges them merely to recommend a “fair amount of cuts” and allow House and Senate ag committees to decide how funds will be distributed. Durbin sees that as the committee’s likely strategy. Congressional failure to pass committee-proposed cuts by Dec. 23 would trigger acrossthe-board budget “sequestration,” which could shave perhaps 9 percent from farm spending while exempting bigticket programs such as Social Security, Medicare, and food stamps, Thatcher told FarmWeek. Highland Park Republican Sen. Mark Kirk predicts Senate passage of the committee bill, but by no more than 51 votes. Insurance investigation Kirk warned IFB leaders that “in this budget environment, See Insurance, page 4
GETTING STARTED
A corn ear glistens in the sun as farmer Steve Kahle opens a field near Hudson. Kahle, who just started corn harvest late last week, reported corn in this field was at about 25 percent moisture with yields near 200 bushels per acre. Unfortunately, many corn ears around the state did not fill out as well as this one due to hot, dry conditions that started around pollination and continue to be a problem. USDA last week lowered the estimated statewide average corn yield by 9 bushels to 161 bushels per acre. (Photo by Ken Kashian)
FFA, ag teachers worry proposed labor rules will restrict students Would livestock shows be impacted? BY KAY SHIPMAN FarmWeek
High school students’ hands-on learning and their FFA projects may be severely restricted under proposed changes in federal child labor rules, according to state agriculture education officials. Last week, high school ag teachers and FFA advisers across Illinois were alerted to the impact of proposed revisions to child labor regulations in the Fair Labor Standards Act. Seneca High School ag teacher Jeff Maierhofer and his fellow members of the National Council for Agricultural Education were raising concerns last week in Washington, D.C. “No one in ag ed is saying students shouldn’t be safe,” Maierhofer told FarmWeek. “We think if we can supervise it (student ag work experiences), we can do a good job.” Maierhofer emphasized the proposed rules would not affect students working on farms owned by their parents. However, the vast majority of Illinois ag students would be impacted. In 2010, 90 percent of the Illinois high students taking agriculture class-
FarmWeek on the web: FarmWeekNow.com
es did not live on a farm, according to the Facilitating Coordination in Agricultural Education. “We have some real concerns and are watching it closely,” said Jim Craft, executive secretary of the Illinois FFA Association. The livestock industry and junior livestock competitions could see significant changes. The proposed changes would prohibit hired farm workers younger than 16 from performing certain tasks with animals. Those tasks include herding animals in confined spaces; working in a pen or stall with a boar, bull, or stallion; and helping with animal husbandry practices that are likely to result in unpredictable animal behavior. One unintended consequence of restricting students younger than 16 from driving a tractor may be fewer students with safe tractor driving experience, Maierhofer pointed out. “Unless you teach them tractor safety, I think it (regulations change) will have the opposite effect. There will be less tractor safety,” Maierhofer said. The ag teacher also questioned if a student younger than 16 legally could climb into a combine cab because the proposed rules would prohibit students younger than 16 from climbing a See Labor, page 2
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, September 19, 2011
gOvernmenT
Quick Takes QUINN, GUEBERT ON CHINA TRADE MISSION — Gov. Pat Quinn and an Illinois delegation, including Illinois Farm Bureau Vice President Richard Guebert Jr., are on an eight-day trade mission to the People’s Republic of China — the state’s third largest export destination. During the trip, Quinn and Archer Daniels Midland Co. will sign an agreement to sell 180,000 metric tons of soybeans to Jiusan Oils and Grains Industries Group Co. Ltd. “Illinois’ relationship with China and with Chinese businesses is an extremely important part of not only helping our economy grow, but also making sure Illinois continues to be a strong competitor in today’s global marketplace,” Quinn said. “During this trip, we will promote Illinois’ exports and encourage Chinese companies to invest in Illinois.” The group will visit Beijing, Shanghai, and Hong Kong. Quinn will meet with Chinese officials in an effort to boost investments in Illinois businesses. Nearly 30 Chinese companies already have invested in the state. Quinn will sign memorandums of understanding to foster future business exchanges in biotechnology, clean energy, and education. He also will sign a sister-river agreement to promote pollution control and clean water technology. The state opened a Hong Kong office in 1983 and a Shanghai office in 2000. For trip updates, go to {www.Illinois.gov} or Twitter at @GovernorQuinn. FARMER PEN PALS NEEDED — The Illinois Agriculture in the Classroom (IAITC) needs farm people to write Chicago-area elementary classes as part of its 30-year-old Adopt-a-Classroom activity, according to Kevin Daugherty, Illinois Farm Bureau education director. Through the Adopt-a-Classroom activity, farm people are matched with Chicago-area elementary students and their teachers. During the school year, the farmers write letters to the students and send magazines, photos, or other items about farming and farm life. Farm participants are not limited to individual farm families, but may include county Farm Bureau committees, FFA chapters, and 4-H clubs. Any farmers or farm groups interested in participating may contact IAITC online at {www.agintheclassroom.org} or call 309-557-3334. IPPA DEBUTS DABURGER — Hungry Chicago Bears fans are finding a new pork item on the menu during football games at Soldier Field. DaBurger is a halfpound pork burger that may be served three different ways, each involving bacon. During the next three Bears home games, Illinois Pork Producers Association (IPPA) will be grilling and giving free ground pork samples on the southeast lawn of Soldier Field. During football games, staff at a specialty cart, located at Section 427 on the upper level, will custom assemble DaBurgers. For more information, go to facebook.com/daburgers or visit the IPPA website at {www.ilpork.com}.
(ISSN0197-6680) Vol. 39 No. 38 September 19 2011 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 (bstandard@ilfb.org) Advertising Sales Manager
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PIT STOP
Rob Shaffer, standing, secretary of the Illinois Soybean Association (ISA) and a farmer from Hudson, unloads soybeans at Hudson Grain Co. while NASCAR driver Kenny Wallace checks out the crop. Wallace was in the area last week as he prepared for the Dollar General 300 race, which was Saturday at Chicagoland Speedway. Wallace’s primary sponsor for the race was Family Farmers, which is a multistate coalition made up of ISA, the Illinois Corn Marketing Board, and the Missouri Corn Merchandising Council. Wallace, an avid supporter of biofuels, entered the race in seventh place in the Nationwide Series points standings. (Photo by Ken Kashian)
Dairy industry counting on sound labor policy BY MARTIN ROSS FarmWeek
During particularly tough economic times for the dairy sector, McHenry County producer Linnea Kooistra is willing to admit “we need the help.” Policymakers can best help provide assistance by enabling milk producers to secure the best help available, argues Kooistra, who participated in last week’s Illinois Farm Bureau Leaders to Washington tour. Kooistra is concerned by proposals to require employer use of E-Verify, an online system that compares worker documentation with Social Security and other federal data. U.S. House Judiciary Chairman Lamar Smith (R-Texas) favors mandatory E-Verify, and Kooistra stressed the need to include ag guest worker reforms in any E-Verify measure. Amid continued controversy over undocumented ag workers, the inability of employers to challenge guest worker employment, and potential for bureaucratic error, she fears EVerify would merely leave her and her husband even more “between a rock and a hard place.”
Labor
Continued from page 1 ladder higher than 6 feet. Supervised Agricultural Experience (SAE) projects are an integral part of high school agriculture classes and FFA. Many FFA awards are based on students’ growth with their SAE projects. However, the proposed changes could impact dramatically SAE project opportunities and work
Over the last several years, the Kooistras have come to rely on a predominantly Latino workforce. “They’re the ones willing to put in the hours, to work on the farm,” she told FarmWeek. “We couldn’t get a lot of other (local) people to work on the farm. We’ve found the people
‘ The dairy industry is highly dependent on this workforce.’ — Linnea Kooistra Woodstock dairy producer
we’ve hired to be dedicated and hard-working — they have families, they want to be part of this system, they’re paying taxes. “This issue with immigration and E-Verify is really important to us. That would mean additional regulation, and it would be expensive for us to have to do it. And because it’s not errorfree, we couldn’t be sure of the accuracy of the data. The dairy industry is highly dependent on this workforce.”
experiences for students, according to Craft. “We want hands-on learning to continue,” Craft said. Maierhofer and his fellow council members are compiling examples of about potential impacts to submit to the Labor Department. Anyone with specific examples of potential impacts may e-mail that information to Maierhofer at jeffmaierhofer@senecahs.org.
Page 3 Monday, September 19, 2011 FarmWeek
government
Lawmakers calling a ‘time-out’ on regulators BY MARTIN ROSS FarmWeek
Congress is ramping up the campaign against federal regulatory overreach as regulators appear to be reaching further into Midwest watersheds and communities. Meeting with Illinois Farm Bureau Leaders to Washington last week, U.S. Sen. Mark Kirk, a Highland Park Republican, hailed proposals to impose a “regulatory timeout” that would, for one year, suspend new federal rules with a cumulative projected annual cost of more than $100 million. A time-out is necessary for the private sector to confidently “save and invest and expand their business,” Kirk said. The senator was hopeful lawmakers could “repeat what we did in the for-hire trucking issue” (see accompanying story). Sen. Pat Roberts (R-Kan.) continues to push “regulatory relief ” legislation aimed in part at blocking new pesticide permit application requirements set to kick in in November. The Senate Ag Committee recently approved the measure, and a committee aide told FarmWeek that committee Chairman Deb Stabenow (DMich.) is working with colleagues to break the “multiple
holds” that have delayed full Senate action. Meanwhile, amid U.S. Environmental Protection Agency review of existing standards for airborne particulate matter, Kirk is helping spearhead efforts to prevent imposition of costly new farm/rural “dust” regulations. The Farm Dust Regulation Prevention Act would block federal changes in standards for a year and offer states flexibility to address serious rural dust issues free of federal intervention. “We’re not having a farm dust crisis in America,” Kirk told Illinois producers. But lawmakers and policy analysts last week warned of continued regulatory threats particularly from EPA. Rep. Donald Manzullo, an Egan Republican, noted his office became involved in “a lot of cases” in which producers have concerns about regulations affecting beef cattle runoff. Manzullo cited renewed efforts to expand the federal definition of regulated “U.S. waters”: “The problem is, (officials) do this stuff by regulation, not by statute.” Kirk suggested producers could accept reduced ag spending if policymakers also could ensure “less federal control.” EPA issued a spring “guid-
ance document” that could expand jurisdiction to ditches and other areas that may retain water only after rainfall events, American Farm Bureau Federation regulatory specialist Don Parrish warned. Under such criteria, EPA could impose Illinois standards targeting “pristine”
water quality based on unrepresentative contaminant levels found in natural areas such as Illinois’ Shawnee National Forest, Parrish theorized. That raises the risk not only of increased ag compliance costs and penalties, but also a possible flurry of new lawsuits against producers and com-
munities, he said. And Parrish stressed the threat of stringent new pesticide-fertilizer regulation extends to all economic sectors — “They’re getting everybody” — and urged the IFB Leaders to build coalitions with other groups affected by EPA overreach.
Illinois Farm Bureau Leader to Washington and IFB board member David Serven, left, discusses the organization’s pending farm bill recommendations with U.S. Sen. Mark Kirk, a Highland Park Republican, right. Looking on are IFB National Legislative Director Adam Nielsen, standing, and IFB leader Kim Morton of Chicago. (Photo by Martin Ross)
Further ag trucking issues could lie ahead Illinois producers last week offered kudos for bipartisan lawmakers who joined recently to help head off potentially burdensome licensing requirements.
But farmers could face further challenges amid questions about “what constitutes interstate commerce,” American Farm Bureau Federation (AFBF) transportation special-
DOT clarification resolves border issue for implements The U.S. Department of Transportation recently clarified that implements of husbandry are not commercial motor vehicles and are not subject to commercial motor vehicles regulations. That clarification resolves a previously controversial issue of what regulations applied when implements of husbandry, such as anhydrous nurse tanks, were taken across state borders. The Federal Motor Carrier Safety Administration’s (FMCSA) authority covers individuals who operate a commercial motor vehicle in interstate commerce; however, the recent clarification means implements of husbandry aren’t considered commercial motor vehicles, including when they cross state borders, according to the Illinois Fertilizer and Chemical Association (IFCA). Therefore, an implement of husbandry that crosses the state’s border in interstate commerce is not subject to the commercial motor vehicle regulations, according to IFCA. In August, FMCSA Administrator Anne Ferro and several staff members toured Central Illinois to learn more about modern agriculture equipment and understand the impact of transportation rules.
ist Elizabeth Jones warned last week. “It’s a tricky issue,” and one that begs congressional clarification and/or correction, Jones told FarmWeek after briefing Illinois Farm Bureau Leaders to Washington. In August, the U.S. Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration announced farm vehicle drivers transporting commodities, farm supplies, and equipment as part of a crop-share agreement would not be subject to commercial driver’s license (CDL) requirements and that ag “implements of husbandry” operated on public roads would not be considered commercial vehicles. In 1975, DOT issued enforcement guidance suggesting agriculture should be considered interstate commerce “based on its assertion that farmers intend for their crops to go into interstate commerce,” Jones related. That exposes farmers to regulatory threats under the Interstate Commerce Clause, despite a general CDL exemp-
tion for operators who deliver goods within 150 air miles of their farm and a waiver of allowable “hours of service” requirements for those who move goods within 100 air miles. Jones said the CDL/crop share controversy “opened a door for us that wasn’t open before” with DOT. But she warns states faced with budgetary challenges are “starting to look at creative ways to say farmers are engaged in interstate commerce,” as a means of raising licensing revenues. AFBF is working with U.S. House Transportation and Infrastructure Committee members to address DOT’s ’75 guidance, arguing that “when you leave your fields, you don’t necessarily know where your crop is going,” Jones said. She stressed guidance was based on “product safety” concerns that don’t apply to farm-to-market movements. “Uniformity between 100and 150-air mile (exemptions) would be really helpful,” Jones argued. “Help from Congress which recognizes that this is a
transportation issue, not a food or product safety issue, would be important. “We’d like to see Congress address the 1975 guidance with a mind toward what we call the market chain of agriculture.” Some states share “reciprocity agreements” that exempt farm deliveries over nearby borders from interstate requirements. AFBF seeks a “national reciprocity agreement” that would provide CDL/hours of service exemptions for operators within 100 to 150 miles of any state line. The problem is, Congress appears poised to approve its eighth extension of surface transportation legislation. With expiration of current highway programs rapidly approaching and transportation funding in question, Jones anticipates a “clean extension,” without policy revisions. “Until we can move forward with some permanent legislation, we’re going to be in limbo,” she said. — Martin Ross
FarmWeek Page 4 Monday, September 19, 2011
government
FTAs could arrive by Christmas if ‘wrinkle’ resolved BY MARTIN ROSS FarmWeek
Congress should be able to deliver Colombia, Panama, and South Korea free trade agreements (FTA) by Christmas, but “unfortunately, not before,” Highland Park Republican Sen. Mark Kirk told Illinois farmers visiting Capitol Hill last week. Hopes for major import tariff reductions in those markets rose as Senate Majority Leader Harry Reid (R-Nev.) unveiled plans to expedite a longdelayed trade agenda, possibly beginning this week. Ag groups are awaiting presidential submission of FTAs for congressional approval. Reid indicated he would submit
two measures as a precursor to FTA debate: extension of Trade Adjustment Assistance (TAA), which offers training for U.S. workers displaced by trade or offshore job movement; and Generalized System of Preferences (GSP) legislation which would waive duties on imports from developing countries. And that’s the rub, or what Senate Majority Whip Dick Durbin, a Springfield Democrat, termed a “procedural wrinkle” in potential FTA passage. Senate leaders, along with President Obama, are pushing TAA as a prerequisite to approval of the three FTAs,
while House Republican leaders see FTA ratification as a necessary condition to TAA action. Meeting last week with Illinois Farm Bureau Leaders to Washington, Durbin said FTAs “clearly do create jobs,” and are crucial in light of Canadian and European competition for U.S. export markets. Kirk noted that already, “we’ve lost out to the Canadians on corn” in Colombia, and suggested existing issues regarding U.S. beef shipments to Korea would “go away” with a South Korea agreement. Durbin argued trade expansion is “always controversial,” especially during periods of
low employment. “I think the trade agreements are going to happen — I just don’t know when,” Chicago Democrat Rep. Mike Quigley told visiting IFB leaders. IFB is willing to support TAA extension as a step in moving the three FTAs. House Foreign Affairs Committee member Donald Manzullo, an Egan Republican, argues that, inherently, “the unions don’t like free trade agreements” and thus have held up FTA progress. But as co-chair of the House Manufacturing Caucus, he said he sees the importance of TAA relief amid currently “massive unemploy-
ment” in Northern Illinois. FTA passage is seen as key to future U.S. trade progress in other regions. Kirk hopes the U.S. eventually can reach bilateral agreements with Asian superpowers India and China, arguing “the agricultural exports alone would be enormous.” Linnea Kooistra, a Woodstock dairy producer, sees significant potential to boost milk powder sales in those markets and improve profitability in one of the U.S.’ few currently ailing ag sectors. “Both countries will have middle classes larger than the population of the United States,” Kirk projected.
House ag subcommittee sets Springfield hearing A congressional panel is coming to Illinois to address the rewiring — and potential renewal — of rural America. The House Ag Subcommittee on Rural Development, Research, Biotechnology, and Foreign Agriculture plans a public field hearing focusing on rural development and broadband access at noon Saturday in Conference Room CD of the University of Illinois Springfield Public Affairs Center. Subcommittee Chairman Tim Johnson, an Urbana Republican, called the hearing to help shape farm bill rural development provisions. Six bipartisan committee members are tentatively slated to attend the field hearing — according to Johnson, one of the first of its kind in downstate Illinois. Rural America faces “an endless onslaught on its continued viability,” from post office and school closings to infrastructure deterioration, Johnson said. Broadband is “a critical aspect of maintaining and strengthening rural America,” argued the lawmaker, who seeks strategies to secure “better access, more complete access, quality access.” The hearing will address broadband potential for rural health care and education improvement — major themes in President Obama’s current “jobs bill” push — and community business development. “When we’re faced with an ongoing potential for decline, we need to do everything we can as representatives to make sure government plays its role in maintaining a strong rural America,” Johnson told FarmWeek last week in Wash-
ington. “Frankly, when rural America declines, the quality of life in America declines. “Over a long period of time, we’ve seen the flight to bigger cities and suburbs and away from small-town, rural America. Part of that comes from the inability of or unwillingness by public bodies, including Congress, to address the needs of smalltown America. “Through this concentration on broadband, together with sewer service, together with schools, together with economic development and new business models, our hope is that by the time our grandchildren reach maturity, we will still have a vibrant, thriving rural America.” The president proposes extending high-speed wireless service to at least 98 percent of Americans and creating a nationwide wireless public safety network. His plan includes $25 billion to modernize at least 35,000 public schools with science and computer labs and Internet-ready classrooms and $5 billion to upgrade community colleges. Last week, Johnson held an “audit hearing” on USDA rural development programs — the last of 11 such hearings aimed at prepping committee members for ag policy debate. Beyond challenges in funding broadband/infrastructure improvements, Johnson is concerned about urban/suburban colleagues tapping available resources by “expanding the definition of rural” through reinterpretation of existing farm bill provisions. USDA is at least three months “overdue” in providing his subcommittee a solid
definition of “rural” that can be used to direct resources to truly rural com-
munities, he said. “They’re providing duplicative services that, quite frankly,
in the long run, drain resources,” Johnson maintained. — Martin Ross
House Ag Committee member Tim Johnson, center, an Urbana Republican, chats with Madison County Farm Bureau President Steve Koeller during a Washington rooftop reception hosted by the St. Louis Agribusiness Club. Looking on are Illinois Farm Bureau Leaders to Washington participants Arco Rosenow of Chillicothe, left, and David Hankammer of Millstadt. (Photo by Martin Ross)
Insurance Continued from page 1 any farm bill is going to get savaged.” But given roughly $12 billion in crop insurance funding cuts over the last few years, IFB National Legislative Director Adam Nielsen questioned whether ag lawmakers would “have the stomach to make further large-scale crop insurance cuts.” Federal premium subsidies offer the only significant insurance pot from which to glean deficit savings, but USDA senior adviser Brandon Willis sees reduced premium support as counterproductive to promoting expanded crop insurance use. Today, most southern growers buy bare-bones coverage, while New England growers “just don’t purchase it,” Willis said. In Vermont, where Hurricane Irene recently wrought widespread havoc, a mere 500 policies were in force. “Now, those producers really have a problem,” RMA’s Alston said.
RMA is seeking limited authority under the next farm bill to develop new policies for specialty and other currently under-protected operations. RMA today can approve only privately developed products. However, House fiscal 2012 spending legislation proposes a $10 million cut in RMA funding over current levels. “You’re looking at people and programs, plain and simple,” Alston told leaders. “We like to say we’ve done our part.” Revenue revision? Meanwhile, a House Ag Committee staffer suggested “a (farm) revenue program is here to stay.” As leaders promoted IFB priorities, the National Corn Growers Association (NCGA) shopped its ADAP (Agriculture Disaster Assistance Program), which melds elements of existing Average Crop Revenue Election (ACRE) and Supplemental Revenue (SURE) programs. NCGA proposes using harvest prices and crop reporting
districts (rather than current ACRE state yield triggers) to set crop revenue guarantees. NCGA policy specialist Jon Doggett told FarmWeek he was “very pleased with the reaction we’re getting” from lawmakers. “We have to do more with less as far as the budget goes,” he said. “We’re hopeful this program meets that need.” The National Farmers Union (NFU) has taken a far different tack, proposing a new “farmerowned reserve” that would pay growers to store commodities when deemed necessary and, ostensibly, buffer price swings. NFU suggests its plan would have saved $56 billion over the past 12 years, but AFBF’s Thatcher sees “not a chance” it will move forward. Past experience has proven that when U.S. farmers withhold production from the market, “a foreign country picks up our markets and runs with them,” she said.
Page 5 Monday, September 19, 2011 FarmWeek
Production
Drought dents corn yield; soy production forecast to grow BY DANIEL GRANT FarmWeek
Farmers in general this harvest will be disappointed with corn yields but pleasantly surprised with their soybeans, based on USDA’s September crop production report. USDA last week lowered corn production by 3 percent and the national average corn yield by 4.9 bushels per acre compared to its August estimates. The current projections pegged U.S. corn production at 12.5 billion bushels, which still would be the third-largest crop on record, with an average yield of 148.1 bushels, which
‘We’ve got ear weights that are getting desperately low.’ — Dale Durchholz AgriVisor senior analyst
would be about 13 bushels below trend. “We’ve got ear weights that are getting desperately low,” Dale Durchholz, AgriVisor senior analyst, told the RFD Radio Network. “They’re below last year and below any in the last five or six years.”
The dip in ear weights and overall corn yields mostly is the result of excessive heat during pollination and abnormally dry or drought conditions in many key corn growing areas, according to Todd Davis, American Farm Bureau Federation crops economist.
ethanol production, and exports were reduced by 100 million bushels. The livestock sector could be hit the hardest by high crop and feed prices. But the effects
we could start to see some liquidation or moderation in the pork industry,” Durchholz continued. “We’re probably not going to feed any livestock to the fuller weights” due to high feed prices. The situation also is expected to keep pressure on retail food prices. The AFBF Marketbasket Survey for the third quarter found the price of 16 food items increased from the second quarter by an average of 4 percent. Meat and dairy products accounted for 40 percent of the quarter-to-quarter increase. — Daniel Grant
Tight supplies, high prices expected to slow corn demand; biggest cut projected in livestock sector The prospect of a tighterthan-expected corn supply and high prices this year is expected to take a bite out of demand. USDA last week in its monthly crop production report trimmed its projection for the U.S. corn crop by 3 percent from its August forecast due to weather-related yield losses. “The average (corn) yield of 148.1 bushels per acre is pretty much what analysts were expecting,” said Todd Davis, American Farm Bureau Federation (AFBF) crops economist. “The theme of this marketing year hasn’t changed. We still have a very tight corn crop.” The tight supply is expected to produce an average corn price for the marketing year between $6.50 and $7.50 per bushel, according to last week’s report. USDA subsequently cut its corn consumption projections by about 400 million bushels. “The big thing with this report is we’re going to start the debate of what’s more important, supply or demand,” said Dale Durchholz, AgriVisor senior market analyst. Corn consumption projections were cut by about 200 million bushels in the feed sector, 100 million bushels from
‘The theme (this season) hasn’t changed. We still have a very tight corn crop.’ — Todd Davis Crops economist AFBF
of herd cutbacks may not be felt until later this year or into 2012 as many animals continue to enter feedlots. “We’re going to see corn consumed by beef cattle probably be at its highest level in the fall and winter and then taper off,” Durchholz said. “As (beef producers) pare down the herd (particularly in drought-ravaged states such as Texas), it points to a smaller calf crop and feeder supply (in the future). “And there is some concern
WILL offers farm broadcasts to mobile phone users WILL agriculture recently launched a website for mobile devices {m.willag.org} that provides access to WILL’s agricultural programming and other ag news. The pre-opening market report, opening market report, and closing market report are available on the site each weekday minutes after they air on WILL-AM 580 radio. Commodity Week is available on the site by 6 p.m. on Fridays. The new site will be particularly useful the next couple weeks as WILL will significantly lower its power so work can be done on its transmission tower. People who are unable to hear the weakened radio signal may access ag programming through the new site for mobile devices or online at {www.willag.org}. Farmers also may call 217-333-3434 at 10:15 a.m. and 3:15 p.m. daily to hear market numbers and some analysis.
The corn supply for 2011/12 was projected to slip to the lowest level since 2006/07. Soybean production, on the other hand, actually was projected to grow 1 percent from USDA’s August estimate. U.S. soy production currently is forecast at 3.09 billion bushels with an average yield of 41.8 bushels per acre, which is up nearly a half-bushel from the August estimate. “Soybeans look good, though we could use a good rain for them to reach their full yield potential,” said Kevin Raber, a FarmWeek Cropwatcher from Wabash County. In Illinois, USDA projected average yields of 161 bushels per acre for corn, down 9 bushels from the August estimate, and 48 bushels per acre for soybeans, which was unchanged from the August forecast. Illinois farmers as of the first of last week had harvested 5 percent of the corn crop,
which was well behind the 2010 pace when 16 percent of the crop was harvested by the second week of September. Soy development in the state also was behind last year’s pace as 13 percent of the crop was shedding leaves the first of last week compared to 38 percent at the same time in 2010. “Some (corn) fields are a little better than guys thought they would be, but some fields that were expected to be good are worse than guys thought they would be, so it’s kind of all over the map,” said Rob Shaffer, secretary and District 6 director of the Illinois Soybean Association from Hudson. “Beans are too far away yet to really tell.” Crop prices were projected to remain robust this marketing year with average ranges of $12.65 to $14.65 per bushel for beans and $6.50 to $7.50 per bushel for corn. Prices are expected to provide a positive return for onfarm storage into December or January for beans and into spring or early summer for corn, according to Chris Hurt, Purdue Extension ag economist. Commercial storage, however, may not pay this year, particularly for soybeans, if the South American crop is large, the economist noted.
FarmWeek Page 6 Monday, September 19, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had a cooler than normal week and just missed a killing frost on Thursday morning when the temperature dipped to 34 degrees. We also have gone about 10 days now without any rain, so that has led to some good drying days. The corn and beans are turning color very fast right now and full-blown harvest will be here before we know it. A lot of corn is being cut for silage and some neighbors have sampled some cornfields, but the driest so far has been in the low-30-percent range. The early-planted, short-season varieties have reached black layer, but that is about it. The later-planted, longer season corn is still a week or 10 days from being mature. Have a good week. Pete Tekampe, Grayslake, Lake County: A cool morning in Lake County. There were some white rooftops Thursday morning, but it didn’t seem to be a killing frost. Corn is turning fast and it should be a normal corn crop for the most part. Early-May beans are turning fast, but the later ones are still dark green. They are calling for rain and warmer weather this week, which will help the later beans. We are still at least two weeks from combining beans. Leroy Getz, Savanna, Carroll County: No rain this past week. Cooler days and some scattered frost on Thursday morning. Corn and soybeans are yellowing and drying down. A few producers have combined some corn, but moisture is still at the 27 to 28 percent level. We continue to make fourth cutting alfalfa hay. It has excellent quality but is slow to dry. Ryan Frieders, Waterman, DeKalb County: It was mostly dry last week. We received a small shower on Wednesday, and on Thursday and Friday it was unseasonably cool. The crops continue to mature. A neighbor started harvesting an early-planted field of soybeans Thursday. I have not seen or heard of any corn being harvested. Larry Hummel, Dixon, Lee County: After about six trips up and down the grain leg making repairs Thursday, I found I’m not in as good of shape as I hoped. Crops continue to head to full maturity, but cooler weather has slowed the process. There havn’t been any combines running yet, but this week might change that. The crops around here have had enough moisture to finish out a challenging year on a strong note. My estimate for Lee County is that corn yields will be 7 percent below average and soybeans will be 5 percent above average. Joe Zumwalt, Warsaw, Hancock County: Corn harvest is progressing at near record pace in my opinion. It doesn’t take long to cover a lot of acres when yields are at these levels. Here is a short list of what this crop endured this season: 30 inches of rain from May 1 to June 20, only 0.4 of an inch of rain in the past three months, 65 mph winds on several occasions, numerous hail storms, insects, disease, and weed pressure, more than 60 days above 90 degrees, and a partridge in a pear tree! After all of this, I am quite thankful to have a farm average of around 125 bushels per acre. We are about two-thirds finished with corn harvest and the beans are turning fast. Stay safe. Ken Reinhardt, Seaton, Mercer County: It was a dry week so far. Corn harvest is getting started although it is not hard to hit 30 percent moisture corn. There are not many hybrids that pass the push test, even ones that are still nearly green. One big wind gust and it could be a long harvest. Yield reports are all over with some average and some well below that. There are soybeans that will be cut by the next report.
Ron Moore, Roseville, Warren County: We had only a brief shower last week. It totaled about 0.1 of an inch of rain. We finished chopping silage last week. We had to change fields because of the down corn from a severe wind storm on Labor Day weekend. Many people have started combining now. We are working on our down corn, and it looks like we are getting most of the corn with the corn reel. The moisture is from 20 percent to 26 percent. Yields are quite variable as well with a 100bushel difference between the best parts of the field and the poorest. It is still early, but the yields seem to be a little better than most farmers expected. Beans are starting to turn and there should be some fields ready to harvest next week in this area. Jacob Streitmatter, Princeville, Peoria County: Harvest has started around the area. Moisture is ranging from 25-32 percent. Soybeans are changing fast and there will be some harvested in the next week or so if the weather permits. Rumors of corn yields are all over the board, with some farms better than expected and others worse. Have a safe harvest. Mark Kerber, Chatsworth, Livingston County: Harvest is getting a slow start. Corn is wet and soybeans are still yellow to green. This week we will see a few start on earlier numbers. We have to remember that October is usually the month to harvest. Markets are in a defensive mode. Yields are a little better than expected, but they are going to be much less than last year. Ron Haase, Gilman, Iroquois County: A few acres of corn and soybeans in the area have been harvested. Most of the crops in the area are still weeks away from harvest. Last week we received from 0.2 to 0.35 of an inch of rain on Sept. 10 and 14. Local corn development is anywhere from the dent stage with the milkline 25 percent of the way down the kernel up to the few acres that have been harvested. I still have not found any of our corn that has reached black layer or physiological maturity. Most soybean fields range from the R-6 or full seed growth stage up to the R-8 or full maturity. I have seen only a few acres of soybeans that have been harvested at this point. The local closing bids for Sept. 15 were nearby corn, $6.85; fall 2012 corn, $5.86; nearby soybeans, $13.31; fall 2012 soybeans, $13.
Wilfred Dittmer, Quincy, Adams County: Harvest has gotten a pretty good start around the area with some fields already history and others just getting opened up. Yield reports are all over the place with most being good, especially the early-planted fields. Most soybeans are pretty green yet but are turning in some areas. Only an occasional entire field is approaching harvest. I think beans will be what you see is what you get. No measurable rain in the gauge for the week except about 0.1 of an inch last weekend (Sept. 10-11). Be careful in the field, as well as on the roads. Carrie Winkelmann, Tallula, Menard County: Harvest started for us and many others in Menard County last week. We started on Monday (9/12) with corn testing in the low 20s to high teens. Yields have been good in places, poor in others. To quote my husband, the yields are “inconsistently decent”. We received 0.55 of an inch of rain on Wednesday that kept us out of the fields for about 24 hours. Tom Ritter, Blue Mound, Macon County: We had two showers that totaled 0.5 of an inch last week. But because of the really dry conditions, it only temporarily slowed harvest. Corn is disappearing at a rapid rate — probably pushing 40 percent complete at this point. Yields have been all over the board. Average is mostly 20 to 30 percent less. Some of it is down to less than 50 percent of normal. It all depends on how good of drainage there was in the field. Moisture also is starting to come down. A lot of corn is below 20 percent, but some of the later-planted (late-May) corn is still in the upper 20s. Overall, farmers are disappointed in yields, but are a little optimistic with the price. Most soybeans are probably 10 days to two weeks off from harvest. There will be some harvested this week, but those fields will be few and far between. It is too early to tell what type of yields we will see in soybeans.
Brian Schaumburg, Chenoa, McLean County: Slow drying rates kept most combines in the shed last week but a few yield reports have trickled in. Moisture is in the mid-to upper20s and yields are approaching the 10-year average, which is 3 to 5 percent better than yield checks showed in August. Standability is an issue. After recent rains, some soybeans have a chance to set records on later maturity. Early-planted fields and are still 2 to 3 weeks away from harvest. Corn, $6.78, soybeans, $13.24; wheat, $6.06.
Todd Easton, Charleston, Coles County: What is that coming from the sky? Did it come from a bird, a plane? No it’s rain! Too late to do anything for this crop other than create a speed bump for the harvest operations, but it nonetheless was nice to finally see an inch of water fall from the sky. The rain fell on Wednesday and by Thursday afternoon combines were back in the cornfields. As harvest goes it looks as though it could have been a worse year. As producers like me get out of their continuous cornfields; their outlook on the year improves. It also is surprising to see the yield spread between April- and Mayplanted corn crops narrow up. From what I have seen, the two generations of corn had completely different lists of strengths and weaknesses. But in the end both are going to arrive at a similar result. Soybean harvest had barely started before the rain and will be very minimal for awhile, but there are fields here and there that look ready. One seed rep said Friday that yields in what little harvested bean fields he knows of, were surprisingly better than anticipated. Maybe the bean crop will be the pleasant surprise.
Steve Ayers, Champaign, Champaign County: Rain Thursday had coverage ranging from an inch in Gifford to 0.25 of an inch at Ivesdale. We had 0.38 of an inch, which was the most prevalent amount. Many farmers have knocked off end rows but stopped harvest when corn was above 25 percent or so to let nature do the drying. Beans are yellowing and a few fields have been harvested. The September USDA crop report pegged our crop reporting district at 151 bushels per acre (bpa) vs. an Illinois average of 161. USDA had our district with the soybean yield at 46 bpa compared to the state average of 48. As of Sept. 11, USDA had our district at 2 percent corn harvested. Even with recent rains, our district is still 38 percent very short and 45 percent short of topsoil moisture. Sept. 18–24 is National Farm Safety and Health Week so, let’s be careful out there!
Doug Uphoff, Shelbyville, Shelby County: South of Route 16 I have not seen anything harvested. North of 16 things are picking up quickly. Moisture levels are running from 16.8 to 19.8 percent in the corn we have been picking. We have run into a variety that did not take the drought well and was for the most part flat. But it still had a decent yield. Last year, it beat every variety we had by 20 bushels per acre (bpa). Go figure. Continuous corn has been running 20-plus bpa less than corn following beans. Second-year corn lagged behind corn following beans by only 5 to 10 bpa. Stalk quality on most varieties will not take a very strong wind, so we are not stopping. No disease is being found in the stalk, but N loss could be the culprit. I went out the other morning and saw something in the driveway I hadn’t seen in a long time – puddles! About 1.5 inches of rain total for the month. As everyone knows, prices went down last week. Will we see $7 again? Some fertilizer is being applied and soil testing also has begun.
Page 7 Monday, September 19, 2011 FarmWeek
CROPWATCHERS Jimmy Ayers, Rochester, Sangamon County: This past week we received 1.5 inches of rain. One inch came on Sunday night (Sept. 11) and 0.5 of an inch fell on Tuesday and Wednesday. There are quite a few people shelling corn. Quite a few plots have been harvested with, varying yields. One field of soybeans was harvested last week. Some fertilizer and lime are being applied. Some tillage is being done. Looks like the market is back on a roller coaster ride. Hope you got some crops sold when prices were pretty good. Be careful and be safe and think of everyone around you. Your family needs you. Ted Kuebrich, Jerseyville, Jersey County: Harvest came to a stop for a couple of days after we received three inches of rain. The temperature dropped from the high-80s to mid-50s on Thursday. The beans are starting to mature and drop some leaves. Prices at Jersey County Grain, Hardin: cash corn, $6.82; fall corn, $6.74; January 2012 corn, $6.90; cash beans, $12.82; fall beans, $12.97; January 2012 beans, $13.42. Rick Corners, Centralia, Jefferson County: Wow — there is still some water left up there! It rained nearly all day on Wednesday and we ended up with 1.4 inches. It should help the late beans a little bit.
Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Dan Meinhart, Montrose, Jasper County: A very welcome rain came Wednesday. Most of the area received about an inch, some more, some less, but at least everybody got some. Temperatures dropped drastically after the rain. Preparation for harvest is in high gear. Very few have begun. The rain was helpful to the later-planted crops. A warming trend is expected for this week with more chances of rain. Dave Hankammer, Millstadt, St. Clair County: This past week was a busy one for me since I’ve just returned from a three-day tour with the Illinois Farm Bureau Leaders to Washington, D. C. and I’m catching up on the activities of home and farm. While I was away, we received 2.3-plus inches of rain on Wednesday and the night-time temperatures dipped to a low of 45 degrees. During the past week, corn harvest got under way. Some of the fields being harvested had down corn due to wind during the summer. Local grain bids are, corn, $6.75; soybeans, $12; wheat, $6.18. Have a safe harvest. Kevin Raber, Browns, Wabash County: Rainfall amounts of about 0.75 of an inch this past week. That should help the later beans. I have seen some bean fields that were close to harvest, so it will be interesting to see which yield the best. Corn harvest is still progressing, but I think all the early corn has been harvested and the later-planted and replanted corn is holding too much moisture.
Dean Shields, Murphysboro, Jackson County: On Wednesday, we received 1.3 to 1.5 inches of rain in the area. The late-planted soybeans will really appreciate that. The size of the seed is pretty small in the pods that I have looked at, even though it seems they have a lot of pods. Corn harvest is coming along pretty well. I am hearing a lot of disappointment in the yields. We will have to see how that shakes out at the end of harvest here, but it hasn’t been very good, according to some farmers. The beans did need this rain, and it will help out. It is the first rain we’ve had in a long time. Everyone have a safe harvest and take care. Ken Taake, Ullin, Pulaski County: We finally got some rain on Wednesday afternoon and night. We received a total of 1.7 inches. I think everyone in the area got something. I have heard of amounts above 2 inches. The ground was so dry that we were able to get in the field again by Thursday afternoon. We started our corn harvest last week. Yields have been slightly above average to 30 percent below average for the field. Some areas were down as much as 50 bushels per acre. Moisture ranged from 16 percent all the way to 30-plus percent in some areas. There seems to be a lot of variability in the same field, depending on areas that had moisture. Early soybeans probably will be ready to cut within the next week, so harvest is really going to start getting busy. Please do remember to take time and be careful as we get into this busy season.
Consider a fall herbicide program after harvest BY BARRY NASH
Due to the excessively wet springs experienced throughout most of the Midwest the last four to five years, many growers have become frustrated over their inability to get a residual herbicide applied prior to crop emergence. Since most corn residual herbicides can Barry Nash be applied pre-emergence through early post-emergence, use of residual herbicides in corn is commonplace. The real challenge is soybeans — as most soybean residual herbicides require application prior to emergence. To make matters worse, the rapid increase in populations and pressures of glyphosate-resistant waterhemp, marestail, giant ragweed, and, recently, Palmer Amaranth only adds to the frustration. These issues have many growers debating whether a fall-applied herbicide program might benefit their operation — especially if the program can provide moderate residual control in the spring which would create more flexibility into the post-emergence application window.
Before implementing a fall herbicide program, it is critical to recognize the weed spectrum you’re trying to control. If only a winter annual weed control program is desired for a cleaner seedbed at planting, something as simple as a glyphosate plus 2,4-D tank mix should suffice. This program provides very good marestail and winter annual broadleaf weed control through April at an economical price. However, if a limited amount of earlyspring residual is needed for small-seeded annual broadleaf weeds, other programs should be considered — especially if glyphosateresistant waterhemp or marestail are present. Keep in mind that regard-
less of the fall herbicide program, limited residual control is all that can be expected — usually through late April to mid-May at most. This time frame will be shorter the farther south
of I-80 the application is made. Generally, most universities agree that fall herbicide treatments should be applied from anytime in late October through mid-November,
The fall-applied residual herbicide program (left) provided excellent weed control through the early spring, which led to quicker soil warm-up and drying, as well as easier planting conditions. (Photo courtesy of Wabash Valley Service Co.)
although applications made south of I-70 generally are successful through midDecember. This allows time for the winter annuals to germinate and reach a vegetative stage of 2 to 4 inches in height prior to application. Be sure the herbicide program includes an herbicide with burndown activity. Additionally, be sure to check the labels of ALL the herbicides used. Many herbicides require application prior to a hard freeze while others allow applications until the ground freezes to a depth of 2 inches. The fall-applied residual herbicide program provided excellent weed control through the early spring, which led to quicker soil warm-up and drying, as well as easier planting conditions. Barry Nash is GROWMARK’s weed science technical manager. His e-mail address is bnash@growmark.com.
Illinois River Road receives economic planning grant The Illinois River Road National Scenic Byway last week was awarded a $78,000 National Scenic Byway Program planning grant from the U.S. Department of Transportation (DOT) Federal Highway Administration. This brings the total grants awarded for the river road to a little more than $1 million. The grant will be used to collaborate
with communities to study, integrate, and prioritize local and regional community and economic development plans, as well as develop new projects related to river road travel into a corridor management plan. The final corridor management plan will include actions that have longterm strategic benefits, such as infrastructure improvements. These may
include bike and pedestrian trails, scenic pull-offs, and visitor facilities. DOT designated the Illinois River Road as a National Scenic Byway in 2005. The 291-mile stretch of road extends from Ottawa to Havana. The byway covers 10 counties including Peoria, Tazewell, Woodford, LaSalle, Bureau, Putnam, Marshall, Stark, Fulton, and Mason. Learn more at {www.illinoisriverroad.org}.
FarmWeek Page 8 Monday, September 19, 2011
Farm expenses
Cash rents, up 8 percent in 2011, could rise again BY DANIEL GRANT FarmWeek Farmland cash rents this year increased by an average of 8 percent in the state, USDA reported last week. And that trend could continue next year as rental rates are expected to follow recordhigh commodity and farmland prices. “Evidence suggests that average cash rents will be higher in 2012,” said Gary Schnitkey, University of Illinois Extension farm management specialist. USDA last week projected corn prices for the current marketing year will average between $6.50 and $7.50 per bushel. Meanwhile, farmland prices
continue to break new ground. The Illinois Society of Professional Farm Managers and
to $38 per acre, with the largest increase projected for excellent-quality ground.
‘Evidence suggests that average cash rents will be higher in 2012.’ — Gary Schnitkey U of I Extension farm management specialist
Rural Appraisers (ISPFMRA) recently released a mid-year survey that found the average price of excellent-quality farmland for the first time in the state reached $10,000 per acre. ISPFMRA members in the same survey projected cash rental rates for 2012 will increase by an average of $24
Factors other than crop and farmland prices, such as farmland productivity and landlordtenant relationships, also will influence rents, according to Schnitkey. He expects rental rates will remain extremely variable across the state. For instance, Macon County this year had the highest average
Seed companies announce price increases for 2012 Monsanto Co. and DuPont this month announced seed prices will rise for 2012. Monsanto plans to raise the price of its DeKalb brand seed corn by an average of 5 to 10 percent while DuPont plans a mid-singledigit-range increase for its Pioneer seed. Syngenta earlier this summer also announced plans to increase seed prices, although a new price range was not set. The price increase for DuPont would be in line with a similar move the company executed prior to the 2011 planting season, Reuters news service reported. Meanwhile, the higher prices for Monsanto were attributed to improved performance of the seed and higher production costs, accord-
ing to a Bloomberg news report. John Ramsay, chief financial officer for Syngenta, told Down Jones Newswires the company is looking at seed price increases for 2012 due to inflation in emerging markets, which make up about half of the company’s sales. Bret Begemann, Monsanto’s executive vice president, reported the company will have an ample supply of seed for next year despite weather challenges — such as drought, windstorms, and flash floods — that took the top end off this year’s corn yield. Monsanto, and other seed companies, typically offset the weather risks for seed production by producing seed in a wide geographic area in the U.S. and South America.
cash rent in the state of $260 per acre (Sangamon County had the second-highest average rent of $252 per acre) while rents averaged $74 per acre in Williamson County and $84 per acre in Union County, based on USDA farmer surveys. But, while Schnitkey believes signs point to higher rates at some locations in 2012, he cautioned farmers and landowners about setting rates this fall based on current crop prices.
“At some point in the future, corn and soybean prices will decline,” Schnitkey said. “When commodity prices decline, cash rents likely will have to adjust downward.” Farmers currently are being pressured by record-high input costs and many are dealing with crop yields that, on average, were projected last week to be 13 bushels below trend for corn and 1.5 to 2 bushels below trend for beans nationwide.
Page 9 Monday, September 19, 2011 FarmWeek
EMERGENCY PREPARATION
ReadyAG helps farmers prepare for disasters on their farms BY KAY SHIPMAN FarmWeek
Disasters can happen anywhere, but a new online tool is designed specifically to help farmers prepare to respond, mitigate, and recover from many types
FarmWeekNow.com Check out ReadyAG’s online questionnaire about disaster plans for your farm at FarmWeekNow.com.
of disasters. “There’s nothing like a disaster to get people’s attention. We’re of the persuasion that an ounce of prevention is worth an ounce of cure,” David Filson,
a Penn State University Extension safety specialist, told FarmWeek. Penn State is the lead university for the nationwide emergency preparedness project. The tool is known as ReadyAG — Disaster and Defense Preparedness for Production Agriculture. It is available free online at {http://readyag.psu.edu}. An online questionnaire and workbook may be completed online or downloaded and printed. ReadyAG offers general emergency plans, such as local emergency numbers and farmstead maps with storage locations for fuel, chemicals, and fertilizer. The program also offers specific emergency plans for
dairy, cattle, swine, poultry, crops, fruits, and vegetables. Extension faculty from seven universities contributed commodity information. Emerson Nafziger, University of Illinois Extension agronomy professor, provided information and Emerson Nafziger questions for the crops section. Nafziger said the crop questionnaire helps farmers prioritize needs for planning and preparedness. Sample questions include: Is grain drying equipment maintained, and are
safety procedures for fires and other emergencies known to all family members and employees? Both the general farm and commodity-specific questions cover four categories: facilities and materials; people; practices; and review and updates. Filson assured farmers their information is not shared with anyone. Individuals who lack Internet access or have slower dial-up access may be able to use Internet services at a public library, he said. “This (ReadyAG) is kind of like insurance,” Filson said. “Chances are you’ll never have to file a claim. But the time you do, you’re glad you have it.”
Illinois grain safety coalition to receive $168,000 grant The U.S. Department of Labor Occupational Safety and Health Administration (OSHA) last week announced the Illinois-based Grain Handling Safety Coalition would administer a $168,000 grant to help further safety awarenesseducation efforts. OSHA awarded $10.7 million in total Susan Harwood Training Grants to 37 new and 32 returning recipients, includ-
labor unions, joint labor/management associations, and colleges and universities. The grant, awarded to the University of Illinois, will be coordinated by the grain safety coalition, which plans to develop training modules and programs aimed at rural coming nonprofit and community/faith-based groups, business and trade associations,
FFA membership reaches record In the past year, more than 17,000 new students have joined FFA nationwide, setting an all-time record since the organization was founded in 1928. During the 2010-11 school year, FFA membership grew to 540,379 students. In addition, the nation added 106 new FFA chapters. FFA chapters can now be found in 18 of the 20 largest U.S. cities, including Chicago, New York City, and Philadelphia. “We are excited to see that agricultural education continues to grow and flourish in this country,” said Dwight Armstrong, the national FFA organization chief executive officer. “Agriculture plays an important role in our everyday lives and it’s inspiring to experience this surge in FFA membership, which allows FFA to grow its impact on young lives,” Armstrong said.
BREAKING BREAD
State Rep. Sidney “Sid” Mathias, third from right (R-Arlington Heights) chats with members of the Mercer County Farm Bureau during their recent visit to his district. Mathias was newly adopted by the county Farm Bureau. The group was joined by Lake County Farm Bureau representatives for a tour with stops at Stevenson High School in Lincolnshire and Didier Farms in suburban Prairie View. At the school, the farmers and school administrators discussed ideas to enhance educational experiences at rural schools with limited budgets. The Mercer County Farm Bureau members learned about farming in suburbia at Didier Farms. The county Farm Bureau hopes to host a farm tour for Mathias later this fall. (Photo by Bill Bodine, Illinois Farm Bureau associate director of state legislation)
munities, elevator operators, farm workers, and young workers. Training and/or materials will be provided in Spanish as well as English. The grant program supports in-person, hands-on training and educational programs for workers and employers in industries with
high injury and fatality rates. U.S. Sen. Dick Durbin, a Springfield Democrat, supported the grain safety coalition’s grant application. The grants are named in honor of Susan Harwood, a former director of the office of risk assessment with OSHA.
FarmWeek Page 10 Monday, September 19, 2011
Page 11 Monday, September 19, 2011 FarmWeek
WHEAT
Variety selection vital to maximize wheat yields BY DANIEL GRANT FarmWeek
Wheat growers this fall can minimize the chance of yield losses next spring by planting scab-resistant varieties. “Growing the most scab-
resistant varieties available may be the most important scab management decision,” said Fred Kolb, University of Illinois small grains breeder. The U of I in recent years has screened wheat varieties
for resistance to scab, or Fusarium head blight. Research results are available online at {http://vt.cropsci.illinois.edu/wheat.html}. There are a number of wheat varieties available in Illi-
Wheat farmers advised to maintain fall plans The current drought in much of Central and South Central Illinois and abnormally dry conditions in the southern third of the state are a concern for farmers interested in planting wheat. Winter wheat needs to germinate in the fall, which obviously requires moisture. And good wheat plant establishment in the fall is essential for winter survival and to maximize yield potential in the spring, according to Fred Kolb, University of Illinois small grains breeder. “The dry soil is a concern,” Kolb said. Just 1 percent of the Midwest was in a drought on May 31, but by the end of last month 48 percent of the area was in a drought, including 5 percent that was rated a severe drought, according to the U.S. Drought Monitor. So what should wheat growers do if condi-
tions don’t improve? “I’d say go ahead and plant into dry soil (if conditions don’t improve by next month),” Kolb said. “That way, when we do get a rain, it (the wheat crop) is there.” The upcoming wheat planting season last week was shaping up to resemble last year when extremely dry conditions delayed the emergence of wheat in many fields. “In Southern Illinois there were some places (last year) the wheat didn’t come up until mid-November,” Kolb said. The situation was not ideal, but the crop statewide still averaged 61 bushels per acre, which was up 5 bushels from the previous year, according to USDA. Illinois farmers last year planted 720,000 acres of wheat, which was more than double the record low planted in the fall of 2009. — Daniel Grant
IFF coalition answers consumers’ questions Simplicity key to understanding
pound emissions, which are precursors to ozone. Adding ethanol
BY KAY SHIPMAN Farmweek
Illinois farmers are fielding more questions from consumers about farming practices and farm lifestyles as the result of action by the Illinois Farm Families (IFF). IFF is a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau. It is accepting consumers’ questions and posting answers to those questions on its website {www.watchusgrow.org}. FarmWeek is publishing the questions and answers to share information and better prepare farmers the next time they are asked a probing question. Simplicity is a theme that applies to the answers. Likewise, none of the answers uses technical terms that would not be understood by the average consumer. In some cases, answers have been supplied by individual farmers for IFF and those farmers are denoted. Question: What’s ethanol, and why do we need it? IFF: Ethanol is an alcohol made from renewable resources such as corn and other cereal grains, food and other beverage wastes and forestry byproducts. Ethanol-blended fuel substantially reduces carbon monoxide and volatile organic com-
to gasoline reduces harmful emissions, lowers the cost of our transportation fuels — and reduces our reliance on foreign oil imports. Q: Wouldn’t our food be healthier if you didn’t use chemicals? IFF: Much like people don’t want ants in the kitchen or weeds in the garden, corn and soybean farmers don’t want insects and weeds in their crops. Pests cause significant damage, spread diseases, and destroy otherwise healthy crops. When we need to use a pesticide or herbicide, we use the least amount possible of the safest material possible. Farmers are trained and certified to apply chemicals by the Illinois Department of Agriculture. We also have to follow very strict rules from the U.S. EPA (Environmental Protection Agency) and FDA (Food and Drug Administration) on how and when to apply farm chemicals.
nois that are resistant or moderately resistant to scab, Kolb reported. Scab can reduce wheat yields and result in poor test weights. And the fungus that causes the disease (Fusarium graminearum) can produce mycotoxins, such as deoxynivalenol
FarmWeekNow.com Check out the latest research on scab-resistant wheat varieties at FarmWeekNow.com.
(DON), that contaminate the grain, according to Carl Bradley, U of I Extension plant pathologist. “Scab is one of the greatest threats to Illinois wheat producers,” Bradley said. Variety selection should be combined with the use of fungicide at flowering for the best control of scab, according to Kolb. Sowing wheat into soybean stubble, as
opposed to corn residue, also reduces the chance of a scab outbreak. “A resistant variety and fungicide (even in research fields with high levels of scab) have been able to suppress the toxin below two parts per million,” Kolb said. “And that’s key because mills don’t want wheat over two parts per million with DON.” The severity of a scab threat or outbreak is dependent on weather conditions at flowering. But Kolb advised farmers to take precautions now to minimize the risk of scab rather than react to an outbreak in the spring. “Having genetic resistance with a fungicide (as a combination plan to manage scab) is better than either one individually,” Kolb said. More scab research results generated by the U.S. Wheat and Barley Scab Initiative are available online at {www.scab usa.org}.
FarmWeek Page 12 Monday, September 19, 2011
BIOENERGy
Tropical plant a-maizing potential for feed, biomass BY KAY SHIPMAN FarmWeek
Exotic name aside, tropical maize may offer Illinois farmers an opportunity to grow a familiar crop for feed and biomass markets simultaneously. That potential for dual markets was highlighted during a recent field day on Dan Schetter’s farm near Brighton in Jersey County. The event drew about 170 farmers, agribusinessmen, energy representatives, and university officials along with 80-some students from Southwestern High School in Piasa. Schetter, a Jersey County Farm Bureau board member, said tropical maize withstood the summer’s heat and lack of rain better than his conventional corn. Schetter’s son, August, planted several tropical maize varieties in test plots for an FFA project. “We’re trying to make it work so we fill the niche of the grain market and the biomass market,” Schetter said. Gary Letterly, University of Illinois Extension energy educator, shared Schetter’s opinion:
Farmer Tony Joehl of Godfrey, left, chats about tropical maize with Randy Fisher, center, Prairie Power Inc., Pearl, and an unidentified Prairie Power staff member as the trio stands beside tropical maize plots near Brighton in Jersey County. University of Illinois researchers are studying the crop for its dual uses as biomass and feed. (Photo by Gary Letterly, University of Illinois Extension)
“Having seen this (crop) for three years, it’s pretty clear this could be a candidate for a (biomass market) transitional crop from the traditional varieties of corn that we harvest. I’m excited by the promise it holds.” Compared to conventional
Mike Vincent, a U of I graduate student who is researching the alternative crop. Vincent is studying 48 different tropical maize varieties planted in numerous small test plots for a total 30 acres around the state. After the plots are harvested, Vincent will post the data on the U of I’s Dudley Smith Initiative website at {http://web.extension.illinois.edu/dsi/index.cfm}. Omni Ventures Inc., a consortium of farmers and public and private sector partners, has farmer members who planted tropical maize test plots with side-by-side comparisons of
tropical maize and conventional corn, said Gary Knecht, Omni Ventures president and an Edwardsville farmer. Tropical maize has great potential for high stover yields up to six tons per acre compared to two to three tons per acre from conventional corn, Knecht said. Knecht said not only does tropical maize have potential for dual purposes, but the crop also is capturing the attention of high school students. “That’s really great that it’s reaching the youth. I hope the youth can benefit, especially in value-added agriculture,” Knecht said.
hybrid corn, tropical maize is taller, sets ears higher, takes 130 days to mature, and holds moisture longer. However, it produces grain as well as high yields of stover. Grain yields differ among tropical maize varieties, said USDA Rural Business Administrator Judith Canales fills the tank of her USDA car with E85 at Hometown Express in Geneseo last week. The pump at the Henry County station, soon will be exchanged for a flexible-fuel pump, funded in part by USDA Rural Development. (Photo courtesy Rural Development)
Rural Development awards grant for Illinois flexible fuel pumps USDA’s Rural Business Service Administrator Judith Canales last week, during her visit to Geneseo, announced funding for one of the agency’s first flexible-fuel pump projects in Illinois. Hometown Express stations in Geneseo and Galva were awarded a grant to pay part of the cost to buy and install flexible-fuel pumps that will offer E30 and E85. “We’re giving people the option to purchase domestically produced renewable fuel in rural areas, often at a lower price per gallon,” Canales said in a prepared statement. Currently 245 stations in Illinois are offering a gasolineethanol blend and 85 percent ethanol. Flexible-fuel pumps have the capacity to give drivers numerous options, including E15, E20, E30, E50, and E85. “While the production of biofuels has been successfully addressed in Illinois, the issue now is how to make biofuels more readily available to consumers,” said Colleen Callahan, state Rural Development director. “The technology is available to make additional blends of
gasoline and ethanol,” Callahan said. “Providing grants for flexible-fuel pumps was the next step in making more renewable fuel options available to consumers.” The grant for the flex-fuel pumps was provided through the Rural Energy for America Program (REAP), a 2008 farm bill initiative. REAP funds are available to help farmers and rural small businesses develop renewable energy systems, improve energy efficiency, and conduct feasibility studies on renewable energy systems. This year, REAP funding also was available for flexiblefuel pumps to provide fuel station owners with an incentive to install the new fuel pumps. To increase the availability of flexible-fuel pumps in Illinois, Rural Development has worked with state and nonprofit organizations, including the American Lung Association, Renewable Fuels Association, Illinois Environmental Protection Agency, the Illinois Department of Commerce and Economic Opportunity, and the Illinois Corn Growers Association.
Page 13 Monday, September19, 2011 FarmWeek
FROM THE COUNTIES
Water commissioner tours Wheeling farm BY BONA HEINSOHN
Two-year-old Luke Alvarez and his father, Metropolitan Water Reclamation District (MWRD) Commissioner Michael Alvarez, recently toured Horcher’s Country Flowers and Farm to gain a better understanding of farming in an urban area. Alvarez and Pat Horcher, head of greenhouse production and sales and Cook County Farm Bureau’s secretary-treasurer, spent the day discussing farmers’ use of phosphorus. The county Farm Bureau coordinated the visit and tour of the Wheeling operation.
Phosphorus typically is applied in a granular form in order to maintain the soils’ nutrient level and replace what nutrients are removed by the plants. Using technology, farmers are able to determine the exact amount that’s needed in order reduce the over- and under-application of the nutrient. Horcher also discussed farmers’ use of technologies. Having started farming in Cook County in the mid-1800s, the Horcher family has seen a tremendous amount of change in farming practices. Variable rate technologies combined with soil testing have allowed farmers to pinpoint what nutrients are needed in a specific swath of a field. By varying the rate of nutrients, farmers are able
CHEWING ON THE ISSUES
State Rep. Lou Lang, center, (D-Skokie) discusses legislative issues with leaders of the Effingham County Farm Bureau during the farmers’ visit to the northern suburbs with the long-time “adopted” legislator. Joined by Cook County Farm Bureau leaders, the group talked about the sales tax exemption on agricultural inputs, the gaming bill, livestock in Illinois, changes in tax law, and the new legislative district. Lang said he looks forward to revisiting Effingham County farms. (Photo by Julie Stephens, Effingham County Farm Bureau manager)
FROM THE COUNTIES
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DGAR — Farm Bureau will sponsor a cooking class at 10 a.m. Tuesday at the Farm Bureau office. Barbara Dick will teach how to cook for one or two people. Cost is $5, which includes lunch. Call the Farm Bureau office at 217-465-8511 for reservations or more information. • Farm Bureau will sponsor a bus trip to New England Oct. 3-10. Included on the tour will be Ben and Jerry’s Ice Cream, LL Bean, the Flight 93 crash site, Yankee Candle, and more. Call the Farm Bureau office at 217-465-8511 for reservations. Details are on the website {www.edgarcountyfarmbureau.org}. EE — Plat books are available at the Farm Bureau office. Cost is $30. Call 857-3531 or e-mail leecfb@comcast.net for more information. • Farm Bureau has slowmoving-vehicle emblems available at the Farm Bureau office. Take advantage of the “buy
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one, get one free” price of $5. • The Young Leaders will meet at 7 p.m. Tuesday at the Farm Bureau office. Dick Vivian, Country Financial advanced planning consultant, will present the program on estate planning. IVINGSTON — Farm Bureau, Bank of Pontiac, and Pontiac First United Methodist Church will collect international phone cards and items to send to military personnel for the holidays. Contributions for the phone cards may be sent to: Phone Cards for Troops, Livingston County Farm Bureau, PO Box 410, Pontiac, Ill. 61764. Call the Farm Bureau office at 815-8421103 for a listing of the miscellaneous items to be sent. Deadline to return contributions is Nov. 7.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
to reduce their costs while ensuring that excess nutrients don’t enter the environment. Horcher also stressed the sheer cost of planting, maintaining, and harvesting a crop. Illinois law provides for a sales tax exemption on agricultural inputs, including chemical and fertilizer. Farm products, including greenhouse plants, however, are taxed upon sale. “It’s important for Farm Bureau members to engage with lawmakers” said Horcher. “Every level of government affects how farmers do business.” Horcher and Alvarez also discussed how municipal regulations can negatively impact farms, which is of particular concern in Cook County given its urban nature. Alvarez was elected to the MWRD in 2010. The MWRD is a
Metropolitan Water Reclamation District Commissioner Michael Alvarez looks on as Cook County Farm Bureau Public Policy Team Chairman Pat Horcher shows Luke Alvarez, 2, how best to select ripe tomatoes. (Photo courtesy Cook County Farm Bureau)
special-purpose district charged with the reclamation and treatment of wastewater in Cook County and protecting the health of citizens and of area waterways.
Bona Heinsohn is the director of public policy for the Cook County Farm Bureau. Her e-mail address is bona@cookcfb.com.
FarmWeek Page 14 Monday, September 19, 2011
profitability
United States exporting propane in large quantities BY RANDY MILLER
Propane markets throughout the summer have been interesting, even if price has been relatively steady the past three months. Propane has been slow to follow crude oil prices as crude reacts Randy Miller to concerns over U.S. and European economics, job reports, higher world demand, and the hurricane season. These issues likely will guide all commodity prices to some degree, but let’s focus on propane. Natural gas and propane suppliers spent the summer building inventories in preparation for the winter heating season, and while natural gas stocks are in good shape this year, propane builds continue to lag. U.S. inventories of propane are more than 11 percent below the five-year average and 14 percent below last year’s levels. Good news is that midcontinent inventories are off only 2 percent from the fiveyear average. The bulk of the shortage, not surprisingly, is on the Gulf Coast, where inventories are 20 percent below last year’s level. U.S. exports have been
leaving the Gulf in record amounts and are projected to continue. In June 2011, propane exports nearly doubled from June 2010 levels. The U.S. has moved from a net importer to an exporter in a very short period of time. Why are we exporting? With a cheap dollar, our propane looks like a bargain to other countries. The U.S. continues to find more natural gas, therefore propane, in shale plays, making exporting propane more viable. The U.S. pipeline system, capable of moving propane and other natural gas liquids around the country, even though dated, is far superior to other countries’ infrastructure. BY KAY SHIPMAN FarmWeek
Wet distiller grains (WDG) offers cattlemen a lower-cost feed alternative given the current shortage of forage and dry pastures and anticipated higher corn prices, according to an Illinois State UniverPaul Walker sity (ISU) animal sciences professor. For years, ISU’s Paul Walker
Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $15.00-$30.00 $21.96 $38.00-$38.00 $38 n/a n/a This Week Last Week 24,687 28,336 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $81.80 $78.71 $60.53 $58.25
Change 3.09 2.29
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) Prev. week This week 117.15 117.00 117.74 116.94
lar is doubtful. The chart shows how fast exports have risen in the past year. You likely know that grain drying will be light again this
Randy Miller is GROWMARK’s director of propane operations. His e-mail address is rmiller@growmark.com.
ISU researcher: Wet distillers grain low-cost alternative feed
M A R K E T FA C T S
Carcass Live
Look for exports to continue unless we see a stronger dollar, and with the current economic outlook, government support for a higher dol-
year with the summer heat the Midwest experienced. Winter demand is unknown, as forecasts for both a warm winter and a cold winter can be found if you look in the right places. An early cold snap with U.S. inventories at low levels likely will give propane prices a boost, and without an economic collapse, prices appear steady to higher. If you still haven’t made plans for propane this winter, now is a good time to take the worry out of this decision and visit your local FS member cooperative for its contracting and even-payment programs.
Change .15 .80
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change 132.10 0.38
This week 132.48
Lamb prices NA
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 9-08-11 11.8 15.7 16.5 9-01-11 9.9 23.1 24.4 Last year 7.3 32.2 43.3 Season total 3.7 315.3 21 Previous season total 10.6 296.3 60.1 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
has studied the feeding of different forms of distillers grains as well as different methods to store the ethanol byproduct. “WDG offers an opportunity for them (cattlemen) to have a lower-cost feed,” Walker said. “Forage is in short supply and pastures are dry, depending on where you are. “The problem for the cowcalf guy is that alternative forage —- straw and cornstalks — is expensive,” he continued. “Because corn prices will be high, it will force producers to look at other alternative energy feed.” ISU graduate student Jessica Veracini reported the average late-June selling price for wet distillers grains with solubles (WDGS) was $72 per ton freight on board (FOB) while prices ranged from $40 to $97 per ton at all Illinois ethanol plants and those within 50 miles of the state border. With WDGS at 40 to 60 percent moisture, the price for dry matter translated to 7.2 censt per pound, Walker noted. By comparison, dried distillers grain with solubles (DDGS) averaged $196 per ton FOB, which works out to 10.89 cents per pound of dry matter. Walker advised producers to comparison shop and pay special attention to hauling distance from the ethanol plant. To compete economically on a dry-matter basis with either DDGS or shelled corn, WDGS should be hauled no more than 50 miles from the ethanol plant to the farm, he said. Price and nutrient content also are important factors to consider. Walker noted WDGS is not
Cattle on the Illinois State University research farm near Lexington ate diets containing wet distillers grains with solubles as a study of alternative feedstuffs. (Photo courtesy Illinois State University)
uniformly priced and its nutrient content not only varies from plant to plant but also varies periodically within a plant. One issue for cow-calf producers may be the smaller amounts needed for feed compared to feedlot operators, and ethanol plants’ reluctance to sell small batches of WDGS. Walked offered two lowcost storage methods for WDGS containing 40 to 60 percent moisture. Producers may use vacuum storage of rows of WDGS covered with plastic silo covers. This method would work well for daily feed needed for smaller herds of 50 or fewer cows, Walker said. Another storage method uses salt and a plastic tarp. Walker recommended filling a bunker (ISU’s measures 20 feet by 80 feet) with WDGS, leveling the top, and then sprinkling a layer of salt at a rate of one pound per square foot.
The salt and WDGS are then covered with a plastic tarp. ISU studies found cattle diets containing 25, 40, and 75 percent WDGS returned more gross dollars compared to diets that contained whole shelled corn and no WDGS, according to Walker. He advised cattlemen to follow the local prices of shelled corn and WDGS on a plant-by-plant basis. “Given how volatile corn prices are, the dietary inclusion rate of WDGS that ensures the most return over feed cost really can fluctuate,” Walker said. In the near future, cattlemen may have an even less expensive feedstuff — condensed distillers with solubles (CDS). Walker was optimistic CDS will prove advantageous but cannot give any recommendations until he analyzes study data. Walker said he hopes to conduct a feedlot study of CDS this fall.
Page 15 Monday, September 19, 2011 FarmWeek
PROFITABILITY Corn Strategy
C AS H ST RAT E GI S T
Corn production may be close The crop detail data USDA offered in its September crop report suggests the corn yield may not drop much, if any, from the 148.1 bushels per acre projected in last week’s report. Starting with the September report, USDA includes the plant and ear population counts enumerators collect in the field. That, and the state yield estimates they provide, can be used to determine an ear weight. This is a “derived” ear weight because it includes the results of both the data USDA enumerators collect in the field and the farmer survey. You can see this crop is starting from a very low level compared to the past seven years for which data is available for the 10 objective yield states. If one looks at the data for the seven objective yield states, for which history is known into the early 1990s, the Sept. 1 ear weight isn’t a new low, but it is near the bottom of the range for that period. The final ear weight for all of those years, except 1995, ended higher than this year’s starting point. Because of that, and comments from the country that yields are generally not as bad as expected, the odds slightly favor seeing ear
weights increase somewhat by the final estimate. At worst, they may remain near the current projection. Ear counts tend to decline through the series of reports, with “drought” year counts declining about the same as the average for the last few years. If ear weights don’t change, that implies the average yield could drop 1-1.5 bushels per acre. If, as we suspect, the starting point is low, subsequent yields could be close to the September projection, with a chance they could rise slightly. Acreage still remains uncertain, even in the wake of the latest monthly update of the USDA Farm Service Agency certified acreage data. The current preliminary total plantings for nine major crops, sugar crops included, is 241.9 million acres. In the most recent report, the USDA projected plantings of 252 million for the same crops. That would suggest only 96 percent of the data has been input. If there’s still 4 percent yet to input, corn plantings might be close to current projections, wheat plantings could be revised down, with soybean plantings revised upward. If corn acreage isn’t changed much, production might already be well known. But, because we’ve never had access to this data, it’s dangerous to draw any hard conclusions on acreage from them, bullish or bearish.
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ü2011 crop: You should have gotten sales up to recommended levels when December 2011 futures fell through $7.20. There’s reason to think a “short crop, long tail” pattern may prevail this year, and if it does, prices could peak early. Plan to wrap up pricing shortly after harvest. For those comfortable with expected supply, we may even add another sale yet during harvest. Because of the modest futures carry, hedge-toarrive (HTA) sales for late winter/spring delivery still work for farm-stored grain. ü2012 crop: You should have made a 10 percent sale when the fail-safe was trigged. Use rallies to $6.35 on December 2012 futures for catch-up sales. Plan to add additional quantities by year’s end. vFundamentals: The production numbers in the Sept. 12 USDA report were slightly friendly, but it was the reduction in demand that caught the most attention. It may have signaled the focus is shifting from supply to demand. And reports that Japan and South Korea were seeking corn from the Ukraine added to the negative demand bias.
Soybean Strategy
ü2011 crop: Catch-up sales should have been made when November futures fell through $13.90. The short-term decline may be overdone, but the shortterm trend is down. Use rallies to $13.75 on November 2011 futures for catch- up sales. Plan to increase sales over the next month, potentially completing them shortly after harvest is over. ü2012 crop: Use a rally to $13.50 on November 2012 futures for catch-up sales. Plan to add sales by year’s end. vFundamentals: Yield and production were forecast higher than the trade anticipated in the September USDA report. And even though export expectations were increased, it still pointed to a more comfortable ending stock. Like the other grains, soft demand has undermined buying interest. Export sales for new-crop soybeans and products continue to lag
recent years. Domestically, crush margins are unusually low for this time of year.
Wheat Strategy
ü2011 crop: Wheat sustained technical damage when the December contract slipped below $7.34. The next significant support comes at $6.81 and $6.51. Use rallies for catch up sales. We may recommend another 20 percent sale if December has a significant short term rebound. Check the Hotline daily. The carry in futures more than pays for commercial storage. We still
prefer HTA contracts for winter or spring delivery for sales. vFundamentals: World wheat supplies were revised significantly higher in the last USDA supply/demand report. Even with larger world wheat feeding, it still increased the supply competing with the U.S. in the export market. And already, U.S. wheat is not price competitive. The Southern Plains has had scattered showers, with additional rains forecast. However, more moisture will be needed to ensure a solid winter wheat crop.
FarmWeek Page 16 Monday, September 19, 2011
perspectives
BIG SKY CLASSROOM
Internship takes JJC student to grizzly country
Above: Joliet Junior College agriculture student Calvin Lynch completed a summer internship on a Montana cattle ranch. Lynch is seen standing near the ranch lodge above Paradise Valley through which the Yellowstone River flows. Left: Lynch moves a tarp to flood irrigate pastures with melting snow runoff as part of his internship. (Photos courtesy Bill Johnson, Joliet Junior College)
Editor’s note: College students embark on internship experiences across the state, country, and even the world. FarmWeek is sharing their experiences as future leaders of the agriculture and food industry. While attending Joliet Junior College (JJC), I participated in a once-in-a-lifetime experience this past summer between my freshman and sophomore years. My lifelong dream has been to go to the western part of the country CALVIN LYNCH and work on a guest columnist cattle ranch. When I heard that dream might actually come true, thanks to the help from the staff in the JJC agriculture department, I had no choice but to attend there to get my degree. I sent my resume to a ranch located along the north gate of Yellowstone National Park near Emigrant and Gardiner, Mont. I didn’t realize I would be working on a 25-square-mile ranch in the mountains and valleys of the Tom Miner Basin on Highway 89. In late February, I was hired by Jim Hubbard, owner of Hubbard’s Yellow-
stone Cattle Co. and an Illinois native, as a ranch hand. One week after my summer vacation started, I got in my truck and headed west. When I arrived, I had a day to get all my stuff unpacked and then off to ranch work I went. My first day was pretty easy, I learned where some of the common locations were, did a little fencing, and pushed some cows on foot. Back in Illinois doing “fencing” is completely different than doing fencing in Montana. When I got to Montana, I had some idea about barbed wire. After 12 weeks, I had a very close relationship with barbed wire. When fencing the long stretches of fence like they have in the West, a fence stretcher is a must. When I finally got the hang of the double-thread barbed wire and the clips that attach the wire to the T-posts, the job was actually pretty cool. Not very many people get to see the side of Montana I got to see when I fenced through the backwoods of the Tom Miner Basin — the most densely populated grizzly bear area in the country. But fencing wasn’t the only thing I did. I also helped saddle the horses every
morning for the horseback-riding guests who stayed at the Hubbards’ Yellowstone Lodge that is on the ranch. I did a lot of spraying weeds — mainly for houndstongue, thistle, nap weed, and beggar’s lice. Plus every morning I would go to the eastern side of the ranch and move my dams about 50 yards down the ditch for flood irrigation. Flood irrigation is when a rancher takes water that runs off the mountains from the melting snow above and diverts it into a man-made ditch that runs along the upper side of a hill. When the water comes through the ditch, about every 50 yards a tarp is put down and to act like a dam. The tarp is held down by a board, which slides through an opening, and rocks on the other end under water. Then the water overflows the ditch and “flood irrigates” the field or pasture below. We used two dams per ditch. Once I set the first dam, I went another 50 yards and put in the second dam. The second dam was not supposed to have much or any water at all until the next morning when I pulled the first dam and the water flowed to it. The reason the second dam was there was to catch the water if the first dam blew out. When I wasn’t spraying weeds, irri-
gating, or fencing, there was always something I could find to do — moving cows on horseback, helping at the lodge, grading the roads with the backhoe, or many other things that were part of a ranch hand’s job. My favorite thing was to move the cows. For moving cows, I will take a saddle and a horse over a seat and a motor. The horses are so much more fun, and they’re amazing animals. As much as it was a nuisance when a few cows would get away, it was fun to go and chase them and turn them around. All and all, I had a great summer and would not change it. I was able to live my dream of being on a ranch and working like they used to in the Old West. It was a great experience and I have Joliet Junior College and Jim Hubbard to thank for it. If anyone ever tells you not to follow your dreams, don’t believe them, because you never know what the next road in your life will be paved with. Calvin Lynch, Cissna Park, is a sophomore at Joliet Junior College (JJC) and majoring in agriculture production and management. He plans to complete his degree in May and either transfer to Southern Illinois University-Carbondale or earn a second degree in agriculture business from JJC.
Agricultural biotechnology driven by U.S. innovation
Throughout history, a spirit of innovation has characterized the United States of America. And innovation has always found a home on the American farm. Take a look at a modern combine or JOHN HART tractor, and you guest columnist will see American innovation at its best. But innovation on the farm doesn’t end there. It can be found in the products farmers use to protect their crops and nurture their livestock. However, the hallmark of American innovation may well be found in agricultural biotechnology. Thanks to the wonder of
biotechnology, more farmers now plant insect-resistant seeds that require far fewer chemical inputs than conventional varieties. Because of the use of biotech seeds, farmers can increase productivity per acre and reduce the need for pesticides. In addition, the adoption of biotechnology has encouraged the use of no-till cultivation, which reduces both herbicide use and greenhouse gas emissions. The evidence is clear that biotech crops currently on the market are safe to eat and pose no environmental harm. In testimony in June before a U.S. House Agriculture subcommittee reviewing the oppor-
tunities and benefits of agricultural biotechnology, Dr. Roger Beachy, president emeritus of the Donald Danforth Plant Science Center in St. Louis, Mo., drove home the point that biotech crops are safe. “Since regulations were first put in place for the products of agricultural biotechnology in 1987, more than 2 billion acres of crops have been grown and harvested in at least 29 countries around the world,” Beachy testified. “In all this vast experience, we have not a single consequence of a novel, negative consequence for health or the environment — not one.” Many scientific bodies attest to the safety of biotech crops.
Studies by The National Research Council confirm that there has not been a single instance of harm to human health or the environment due to the use of biotech seeds. In Europe, the Joint Research Centre has concluded that biotech products currently on the market in the European Union are safe. Based on the evidence to date, the benefits of commercialized biotech crops far outweigh the risks. After a thorough and rigorous safety and environmental review, U.S. regulatory agencies have proven that biotech sugar beets and alfalfa are safe for commercialization, yet the use of these valuable products has
been challenged in court. The potential for feeding a hungry world through biotechnology is nearly limitless. Agricultural biotechnology is safe, sustainable, and serves consumers by ensuring an abundant food supply. It is time to invigorate America’s innovative spirit by renewing our commitment to agricultural biotechnology, removing the regulatory hurdles that stand in the way, and continuing to make consumers aware that biotech crops are not only safe but desperately needed.
John Hart is director of news services for the American Farm Bureau Federation. His e-mail address is jhart@fb.org.