A plAn desIgned to promote, implement, and track adoption of nutrient best management practices was unveiled last week. ...2
FArm equIpment manufacturers of all colors strutted their new stuff at the Farm Progress Show last week. ...............................3
stAlk And root rots are becoming a real concern in Illinois fields this fall. Farmers should plan to harvest affected fields first. ......7
Monday, September 5, 2011
Two sections Volume 39, No. 36
Illinois land values breaking new ground BY DANIEL GRANT FarmWeek
A mid-year survey of Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) members indicated new ground had been broken as the average price for excellent-quality farmland in the state for the first time in history reached five digits. The ISPFMRA survey, released last week at the Farm Progress Show in Decatur, estimated farmland prices in the state the first half of 2011 increased 14 percent.
FarmWeekNow.com We have video of Soy Capital’s Don McCabe on the latest farmland value survey at FarmWeekNow.com.
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Average prices in Illinois were estimated at $10,000 per acre for excellent-quality farmland, $8,500 for good farmland, $7,500 for average land, and $5,800 for fair ground. “For the first time in history (the average value of), excellent farmland hit the $10,000-peracre milestone,” said Don McCabe of ISPFMRA and Soy
Capital Ag Services. “We’ve seen individual sales higher than that, and some less.” A recent sale of farmland in East-Central Illinois supported the trend as a regional investor last month paid $10,944 per acre ($11,593 per tillable acre) for 143 acres of farmland in Champaign and Ford counties, Champaignbased Murray Wise Associates reported. The main factors supporting the run-up in farmland values are high commodity prices and low interest rates, according to the survey. “Farmers still are the primary driver of the land market,” McCabe said. Investors seeking a safe haven from an unstable U.S. economy also continue to enter the market. “We’ve seen other types of buyers interested in the marketplace, including private investors, investor groups, and foreign capital,” McCabe noted.
The ISPFMRA survey predicted land values will continue to increase in the state for at least the next year. Soaring farmland values also are driving up cash rental rates. ISPFMRA members estimated average cash rents in the state
this year ranged from $214 per acre for fair farmland to $329 per acre for excellent ground. Survey respondents predicted cash rental rates for 2012 will increase by an average of $24 to $38 per acre. More farmers and landowners are adjusting to
the higher prices and extreme volatility in commodity and input prices by switching to variable cash rent agreements that have a base rent and some type of pricing mechanism that allows farmers and landowners to share risk, McCabe added.
Gov. Pat Quinn, left, examines a Case IH soybean head with Illinois Farm Bureau Vice President Rich Guebert Jr., center, and IFB President Philip Nelson during a tour of last week’s Farm Progress Show in Decatur. Nelson and Guebert discussed agricultural issues with the governor during his visit to the farm show. See further stories from the show inside. (Photo by Ken Kashian)
House Ag members set to guide deficit panel BY MARTIN ROSS FarmWeek
The U.S. House Ag Committee is determined to guide the direction — if not the extent — of future ag spending, Illinois committee members told FarmWeek during last week’s Decatur Farm Progress Show. Rep. Bobby Schilling, a Colona Republican who sits on the House Armed Services Committee as well as the Ag Committee, reported “everything’s going to be on the table” as a 12-member “super Congress commission” attempts to identify $1.5 trillion in federal spending cuts by November. House Ag Committee Chairman Frank Lucas (R-Okla.) plans to offer bipartisan recommendations for the commission by mid-October. Without committee guidance, Schilling warns, program changes will be left to “a bunch of folks who have no clue as to ag or the Department of Defense” — a potentially devastating development if spending debate “turns political.” Even a draft farm bill blueprint “is far from completed at this point,” said Rep. Tim Johnson, Urbana Republican chair of the ag Rural Development, Research, Biotechnology, and Foreign Agriculture subcommittee.
But Johnson said the stakes involved in the next farm bill are too great to leave to non-ag interests, arguing that “when we advocate on behalf of American agriculture, we advocate on behalf of the world.” “While we recognize we all have to engage in what we call shared sacrifice, the agricultural sector, specifically the Agriculture Committee, needs to be the one driving where the cuts have to made, so we can ... preserve the (farm) safety net and recognize fiscal reality,” he said. “I’m optimistic that’s going to happen, although with a super committee filled with people who are largely urban-oriented, that’s going to be a difficult task.” Illinois Farm Bureau’s Farm Policy Task Force soon will unveil its farm bill proposals for December IFB debate at the annual meeting. Indiana Farm Bureau (InFB) delegates at that state’s annual meeting last week ranked risk management as their key priority, followed by research, conservation, rural development, and, in fifth place, direct payments. InFB President Don Vilwock cited member recognition that direct payments are a prime deficit target. Even as staunch
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a past direct payment advocate as the National Cotton Council of America has “thrown in the towel,” urging emphasis instead on a stronger revenue-based crop insurance program, he noted. Indiana delegates remained general in their support for risk management/crop insurance improvements: Vilwock said leaders will eye specific refinements “if the super committee just doesn’t absolutely wipe out all the money.” Amid high crop prices, “giving (direct payments) up is probably not too painful at this time,” as long as a strong farm safety net remains in place, he said. “If you look in the dictionary under ‘toast,’ I think there’d be a picture of direct payments,” he told FarmWeek. “They’re just such a lightning rod. With commodity prices where they are today, I hear from a lot of farmers that it’s almost an embarrassment that we’re getting direct payments.” Vilwock echoed Johnson’s characterization of the farm bill’s role in global security, applauding his members’ call for ag research support. Basic research is vital to “U.S. farmers’ global competitiveness” and the development needed to feed a projected 9 billion people by 2050, Vilwock said.
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FarmWeek Page 2 Monday, September 5, 2011
eNviroNmeNt
Quick takes CORN PLAN OK’D — The National Corn Growers Association last week signed off on the Illinois Corn Growers Association’s (ICGA) recently developed Agricultural Disaster Assistance Program (ADAP) farm safety net proposal. The plan, initially outlined in last week’s FarmWeek, melds aspects of the Average Crop Revenue Election (ACRE) and Supplemental Revenue (SURE) programs, setting new yield loss triggers at the crop reporting district level rather than at the state level, as currently prescribed under ACRE. The proposal, which proposes to speed up ACRE-style payments to growers, is designed to complement shortterm crop insurance guarantees with protection against “multiple-year price and revenue declines,” ICGA President Jim Reed told FarmWeek. Reed hopes it will at least provide food for thought as ag committees prepare for the 2012 farm bill. “Once Congress gets hold of it, I’m sure they’ll tweak it to their liking,” Reed said Friday. “We’re hoping this would bridge the gap between the reductions in direct payments that are being proposed, the ACRE program, and the disaster component of the SURE program.” FFA MAGAZINE DRIVE FOR TROOPS — Mission accomplished by FFA chapters for the Illinois Farm Bureau magazine drive for the troops during the Farm Progress Show. The Mendota FFA Chapter topped all others by collecting more than 4,000 magazines and bringing them to the show site, according to Mariah Dale-Anderson, IFB youth activities manager. The chapter will receive an iPad for its efforts. Overall, 26,457 magazines were donated by FFA chapters from around the state. “We were completely overwhelmed by the great support from chapters, and we truly thank you for your efforts,” Dale-Anderson said. STATE FAIR MARKS GROWTH — The 2011 Illinois State Fair achieved notable increases in overall attendance, sale prices for champion junior livestock, and concert ticket sales. About 817,000 fairgoers, up by more than 74,000 individuals, attended this year’s fair compared to last year. In fact, the 2011 attendance levels were the highest since 2002. Three record prices were set during the governor’s sale of champions. Record prices of $51,200 were set for the champion junior steer; $12,500 for the grand champion wether; and $10,100 for the Land of Lincoln barrow. A record 15,329 tickets were sold for the Jason Aldean concert, which surpassed the 1995 record set by Hootie and the Blowfish. Overall, 49,649 tickets, the most in 11 years, were sold for grandstand entertainment this year.
(ISSN0197-6680) Vol. 39 No. 36 September 5 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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Illinois Farm Bureau Director Dale Hadden of Jacksonville discusses IFB’s support for a new nutrient stewardship program, Keep it for the Crop by 2025, during a press conference at last week’s Farm Progress Show in Decatur. Looking on are Jean Payne, left, of the Illinois Fertilizer and Chemical Association, and Gary Hudson, president of the Illinois Council on Best Management Practices. (Photo by Kay Shipman)
Ag groups launch nutrient stewardship plan
KIC 2025 focusing on six watersheds BY KAY SHIPMAN FarmWeek
Illinois agriculture groups last week set a goal to reduce nutrient losses in priority watersheds with water quality problems. The Keep it for the Crop by 2025 program, dubbed KIC 2025, was unveiled during a news conference at the Farm Progress Show in Decatur. The collaborating ag groups and
FarmWeekNow.com To learn more about the KIC 2025 program, view a video at FarmWeekNow.com.
state agencies are committed to promote, implement, and track adoption of nutrient best management practices. “Farmers want to do the right thing. We need to find them the tools and the technology. This is a huge step forward,” Lisa Bonnett, Illinois Environmental Protection Agency (IEPA) interim director, told FarmWeek. The program will focus on the “four Rs” of nutrient steward-
ship: right source, right rate, right time, and right place, officials said. The Illinois Council on Best Management Practices (ICBMP), an ag industry coalition, will implement KIC, which is a state program. ICBMP members include Illinois Farm Bureau, Illinois Corn Growers Association, Illinois Fertilizer and Chemical Association (IFCA), Illinois Soybean Association (ISA), Illinois Pork Producers, and Syngenta Crop Protection. “KIC 2025 has strong education and research components,” IFB Director Dale Hadden told the crowd. The program was “developed by agriculture to help protect water quality, reduce nutrient losses, and enhance farm economics.” Initially, KIC 2025 will focus on priority watersheds. They are Lake Bloomington, Lake Vermilion, Lake Decatur, the Illinois Basin of the Vermilion River, Salt Fork Vermilion River, and Lake Mauvaissee Terra. Those rivers and lakes have
water quality problems because they contain too much nitrogen or phosphorous or both, according to Marcia Wilhite, chief of IEPA’s bureau of water. Hadden noted KIC 2025 supports the idea that watersheds have different soil types, slopes, and other variables. “This (program) will help us avoid a one-size-fits-all approach,” Hadden said. Wilhite commended the state’s ag community for stepping forward and crafting the nutrient program. “The plan is all theirs,” Wilhite told FarmWeek. “I hope other states will look over their borders and say, ‘Hey, what are they doing?’” Wilhite continued. “I think it’s key that people already have a stewardship ethic and add nutrient stewardship to that focus.” Jean Payne, IFCA president, said the ag industry is working to secure dedicated industry-based funding for KIC 2025. In the interim, start-up funding is being provided by the Illinois Corn Marketing Board, ISA, and IFCA members Agrium, CF Industries, Koch Fertilizer, The Mosaic Co., and Potash Corp. of Saskatchewan.
Seed industry now looking at ‘N’ X-factors These days, the crop industry is hustling to put a lot more into new crops — diversified pest resistance, higher feed values, better nutrition, adaptability in a changing climate, and, of course, maximum yield potential. But a changing political and regulatory environment also has the crop sector scrambling to add one more increasingly essential ingredient: federal compliance. As the U.S. Environmental Protection Agency (EPA) intensifies its focus on nitrogen in both the soil and the atmosphere, Dow AgroSciences representatives outlined efforts to help producers better manage nitrogen and thus stay out of the federal crosshairs. Dow AgroScience’s Byron Hendrix noted accelerated efforts to identify corn lines or traits that would improve nitrogen use and thus reduce fertilizer overuse or runoff. That includes a systemic approach possibly incorporating existing nitrogen stabilization products and conventionally bred or GMO corn with advanced nitrogen use efficiency. Hendrix acknowledges EPA’s push for improved nitrogen management in areas such as the eastern Chesapeake Bay. The American Farm Bureau Federation is a principle in a lawsuit against EPA’s imposition of nutrient management guidelines for
the bay region, amid concerns the agency could target the Mississippi River Basin next. “The logo for our agronomy services is ‘precision product placement,’ and we’re actually trying to identify products that work in that type of environment,” Hendrix told FarmWeek. “2V715 (a highly adaptive, stacked-trait Corn Belt hybrid) is an example. I’ve seen it work in a vast area. “As far as traits go, we’re continuing to look at various things. Part of that is identifying our current lineup and ‘experimentals’ in our lineup that may have a good fit. More and more, we see that corn in the field — hybrids that work better on lower nitrogen rates or with our Instinct or N-Serve (stabilization) products.” Beyond on-ground nitrogen issues, EPA’s science panel cited concerns about airborne “greenhouse gas” emissions from non-transportation “stationary sources.” Dow product manager Amir Faghih cites a growing body of data indicating nitropyrene — the active ingredient in stabilizer products — could have a significant impact in reducing nitrous oxide emissions. “That’s been brought out more and more in the agriculture sector, just because of the interest in greenhouse gases,” Faghih said. — Martin Ross
Page 3 Monday, September 5, 2011 FarmWeek
farm progress
Demand grows for bigger, more efficient farm equipment terms of the number of products and the value of those products — in the company’s 174-year history, Nelson said. The downturn in smaller horsepower tractor sales likely reflects struggles of the U.S. economy, which has reduced tractor demand by hobby or “sundown” farmers, according to Snack. “The sundowners, who’ve got maybe 5 to 10 acres, are having a tough time right now” because of the economy and an unemployment rate above 9 percent, Snack said.
BY DANIEL GRANT FarmWeek
It was all about horsepower last week at the 58th annual Farm Progress Show as farm equipment manufacturers rolled out some of the largest, most powerful tractors and combines on the market. John Deere unveiled some of its newest S-Series combines, including the S690, which was billed as the largest combine available. The S690 has a peak of 617 horsepower, a 30 percent larger cab, grain tank extensions that increase holding capacity to 400 bushels, and it comes with a 16-row head for 30-inch rows and an 18-row head for 20-inch rows. Meanwhile, Case IH rolled out its largest combine, the 9230, which has a maximum horsepower of 560 and is 19 percent more efficient than the model it replaced. Case IH also announced it will expand its Magnum Series to include a new Magnum 370 CVT model, which will be the highest horsepower mechanical front drive tractor on the market at 419 maximum engine horsepower. “Many of the bigger farmers, with higher (commodity) prices, are wanting to reinvest
A large crowd watches a corn harvest demonstration at the 58th annual Farm Progress Show in Decatur. Moisture of the 95-day hybrid was 20 to 22 percent, but yields were low, barely above 100 bushels. Conditions were extremely dry at the show site, which received just 0.6 of an inch of rain from July through August. (Photo by Daniel Grant)
in their largest expenditure items,” Terry Snack, Case IH combine product specialist, told FarmWeek. “Land is the biggest expenditure and the second-biggest is equipment.” Farm equipment sales for the first half of 2011 showed a trend toward increased sales of big-ticket
items with a downturn in sales of smaller tractors. The Association of Equipment Manufacturers reported equipment sales as of July were up 10.3 percent for 100plus horsepower tractors but down 8 percent for 40- to 100horsepower tractors and down 11.4 percent for tractors with less than 40 horsepower.
“The trend as farms consolidate is (farmers) want larger equipment that covers more acres in less time,” Barry Nelson, John Deere manager of media relations for worldwide ag and turf equipment, told FarmWeek. John Deere recently responded by making its largest product launch — in
“The market (for tractors with less than 100 horsepower) as a result is down.” Overall, equipment manufacturers are experiencing positive sales growth fueled by high commodity prices and farm income. John Deere recently reported worldwide net sales and and revenue increased 22 percent while income was up 15 percent in the third quarter, which was a fifth consecutive quarterover-quarter record. Elsewhere, Caterpillar for its second quarter reported sales and revenue of $14.2 billion, which was the highest of any quarter in the company’s history.
Many new tractors and combines already EPA Tier 4 compliant Equipment manufacturers at the Farm Progress Show in Decatur reported many of their new product offerings already meet stiffer Environmental Protection Agency (EPA) regulations that will take effect in the near future. EPA will require all off-road diesel engines to meet Tier 4 regulations by 2014. The regulations will require air coming
out of diesel exhaust systems to be virtually as clean as the air entering the engines. Equipment manufacturers are using a pair of options to achieve Tier 4 compliance in farm tractors and combines. One is a cooled exhaust gas recirculation and air exhaust filter. The other is a selective catalytic reduction (SCR) and diesel oxidation catalyst
(DOC). The SRC reportedly lowers oxides of nitrogen while the DOC reduces particulate matter. The changes in new equipment production haven’t impacted power or performance. In fact, manufacturers at the Farm Progress Show unveiled new tractors and combines with increased horsepower. “We can meet Tier 4 re-
quirements and have the power and performance our customers expect,” said Barry Nelson, manager of media relations for John Deere. Manufacturers, along with lowering emissions from equipment, also have improved fuel efficiency in new models. “The big thing is fuel economy,” said Terry Snack, Case IH combine product specialist.
Snack claimed Case IH has increased power output and improved fuel efficiency by an average of 10 percent across its product lines. “Not only are our engines more powerful, they are also more responsive and more fuel efficient,” said Nate Weinkauf, Case IH combine marketing manager.— Daniel Grant
State legislators receive agriculture technology immersion
IFB hosts tour at Progress Show BY CHRISTINA NOURIE
Nineteen state legislators and Illinois Agriculture Director Tom Jennings braved the heat to see the latest in agriculture technology last week at the Farm Progress Show in Decatur. Illinois Farm Bureau hosted a special legislator tour, and those who completed the tour received a certificate designating them as a 2011 agriculturecertified legislator. IFB President Philip Nelson and IFB board members discussed agricultural issues with the legislators during their stop at the IFB tent. They also received an overview of agricultural equipment technology at the Case IH exhibit from product spe-
cialists. Crop protection technology and the environmental benefits were the focus during their tour of the Syngenta exhibit. The tour concluded with a demonstration of a grain rescue at the Illinois Grain Handling Safety Coalition exhibit. Legislators who were certified were state Reps. Dan Brady, John Cavaletto, Lisa Dugan, Roger Eddy, Norine Hammond, Chad Hays, Elaine Nekritz, Robert Pritchard, David Reis, Wayne Rosenthal, Pam Roth, Jim Sacia, Patrick Verschoore, and David Winters. Also certified were state Sens. Shane Cultra, Mike Frerichs, Christine Johnson, Sam McCann, and Kyle McCarter. Christina Nourie is the IFB northeast legislative coordinator.
A Syngenta specialist, wearing orange shirt, explains crop protection technology to state legislators who participated in a Farm Progress Show program hosted by the Illinois Farm Bureau. Lawmakers were designated agriculture-certified legislators after they completed a tour of the farm show last week. (Photo by Christina Nourie, IFB northeast legislative coordinator)
FarmWeek Page 4 Monday, September 5, 2011
markets
GMO soy oil ‘remake’ coming to growers, consumers BY MARTIN ROSS FarmWeek
Attendees at the annual Farm Progress Show generally are drawn to pork chop sandwiches, barbecue, and other such culinary delights. Pioneer’s tater tots this year offered show-goers something a little different on several levels. The company fried a truckload of tots to introduce visitors to cooking oil made from Plenish high-oleic soybeans. Plenish ramps up oil stability and shelf life while offering zero trans fats, 20 percent less saturated fat compared with “commodity” soy oil, and high-
er levels of monounsaturated fats associated with heart health. Under a contract with Archer Daniels Midland Co., Indiana growers next year will plant an initial commercial crop of Plenish beans — according to DuPont Plenish Venture Director Russ Sanders, the first U.S. ag biotech release “that’s not all about things that matter to a farmer.” The push for modified soy oils intensified with federal labeling of trans fat content in foods in 2006. Consumer acceptance has been a past challenge for GMO developers, but extensive “dialogue” with snack, fast food, and other companies indicates
Bagged refuge ‘halo effect’ root-saver? Major seed companies hope new “refuge-in-a-bag” Bt corn products will help growers stay in regulators’ good graces and ahead of insects. At last week’s Farm Progress Show, companies including Dow AgroSciences and DuPont-Pioneer highlighted the newest in a growing selection of integrated single-bag products. Those products include a mix of insect-resistant Bt and non-Bt seed designed to meet U.S. Environmental Protection Agency (EPA) insect resistance management planting refuge guidelines. New introductions include Dow’s Refuge Advanced corn, which addresses above- and below-ground pests, and DuPont’s Optimum AcreMax above-ground and Optimum AcreMax Xtra broad-spectrum insect protection products, which received EPA approval last week in anticipation of a 2012 release. Refuge Advanced includes eight-trait SmartStax technology — the genetic platform for the company’s future GMO releases. According to Dow AgroSciences’ Byron Hendrix, singlebag refuge offers a “halo effect” that should help reduce rootworm damage within the overall refuge zone. While vulnerable non-Bt refuge plants are “clumped together” in a conventional “structured” refuge of insect-resistant and non-Bt-planted plots, he explained, non-refuge plants are scattered throughout a field in a bagged approach. “You get some worms that will feed on a non-insect-traited plant and then on a (toxic) traited plant, which are relatively close to each other,” Hendrix told FarmWeek. “It gives us a little better consistency in root feeding — there is feeding there, but not as much as there would be in a separate, structured refuge.” Hendrix reported plans for a “very large introduction” of Refuge Advanced varieties in 2012, with “total Corn Belt coverage.” Pioneer plans a similar launch of AcreMax and AcreMax Xtra across multiple hybrid platforms next spring. Both company’s have worked extensively with EPA to ensure single-bag products meet Bt refuge requirements. Pioneer Senior Marketing Manager Brian Deaverman told FarmWeek farm refuge stewardship and long-term insect “trait durability” are important to EPA, which provides an initial short-term registration for new products to ensure refuge management requirements are being followed. Producers planting first-generation products such as Herculex (Dow’s pre-SmartStax platform), Yieldgard, or Agrisure Bt corn must plant a separate, structured 20 percent non-product refuge. That requirement was reduced to 5 percent separate refuge for SmartStax varieties. “Now, the pressure’s on Dow (and other single-bag marketers) to say that the farmer’s compliant,” Hendrix said. — Martin Ross
consumers are ready for technology that improves nutrition and flavor, Sanders said. “This is really a remake, if you will, of soybean oil,” he told FarmWeek. “We changed the profile to make it much more like olive oil. That has a lot of good consumer health benefits. If you’re a major fast food company, it offers a lot of nice features in terms of longer fry life. “It’s really all about bringing technology to make a better product — not only more beans per acre, but a better product a consumer cares about. I think this is one of the new dimensions of biotech companies like ours — we have to think beyond just what happens in the soybean field.” Pioneer nonetheless has incorporated the Plenish trait into its higher-yielding “Y Series” varieties. ADM is recruiting growers in the Frankfort, Ind., area to grow Plenish beans in 2012. Growers will receive both a “processor paid incentive” and a premium to raise GMO beans under strict stewardship/identity preservation standards. U.S. agencies have OK’d Plenish contract production and use, but Pioneer does not expect key global approvals until late 2012. First-year beans will be processed in 2013. Sanders was unsure how quickly contract opportunities might reach Illinois. But he noted Pioneer is “somewhat moving from east to west” and anticipated an eventual 10-mil-
Shane Zimmerman, an employee of Bunge, fries up a batch of tater tots cooked with oil produced from Pioneer’s new Plenish GMO higholeic soybeans. Pioneer served a variety of snacks to promote commercial contract production of the new product beginning next spring. (Photo by Martin Ross)
lion to 20-million-acre contract “opportunity” from Ohio through Iowa, as new processors come on board. Beyond providing “better frying performance,” Sanders sees Plenish oil’s prolonged shelf life reducing potential for the “off-flavors” associated with extended cooking oil use and thus improving the appeal of fried fast foods. Pioneer also is eyeing Plenish’s potential in what Sanders termed the “non-food space,” working with parent company
DuPont to exploring use of the long-lived, biodegradable oil as a cooling fluid in electrical transformers. Plenish oil also could provide a platform for lubricants, hydraulic oils, and other biobased petroleum replacement products, he said. “As great as biodiesel has been for soybean oil in the last five years or so, we may not see that much more growth in (soy) biodiesel,” he said. “We’re constantly looking for new market space.”
FCS official: Risk management important amid uncertainties “These are pretty good times for agriculture,” notes Don Olson, Farm Credit Services of Illinois chief credit officer. That in itself creates policy challenges for producers, and Olson sees financial and insurance-based risk management playing a greater role in sustaining future ag prosperity. Farm Credit obtains some of its financing through Wall Street money markets, but despite economic anxieties, he reported, “There hasn’t been a problem obtaining funds at this point.” However, while it is “one of the standout segments of the economy,” agriculture is susceptible to “the same risk the rest of the economy has to downturns and monetary problems,” as well as related “political issues,” Olson told FarmWeek. Near term, he is guardedly confident in Federal Reserve Chairman Ben Bernanke’s pledge to hold the line on interest rates into 2013. Olson noted continued economic weakness and said “inflation is under control.” “Given those factors, I’d have a hard time disagreeing with his assessment,” Olson said last week at the Farm Progress Show. Olson cited his association’s strong mid-year status, with solid “working capital” helping
farmers pay down debt (“A lot of money’s coming in the door”). His loan demand pipeline “is as full as it’s ever been this time of year.” At the same time, he acknowledged “it’s been fairly dry in a big part of the territory we serve” — Illinois’ southern 60 counties. Poorer-thanexpected crop conditions and federal ag spending debate raise near-term uncertainties. Olson noted, “We’ve been accustomed to having a built-in safety net” that bolsters security for farm creditors. He sees crop insurance playing an expanded safety net role, helping farmers make long-term commitments, “especially as it relates to leveraging future earnings.” Further, producers increasingly are managing risk by diversifying loan terms and rates to “hedge interest rate costs.” “If a customer buys a 160-acre farm at $10,000 an acre, that’s $1.6 million,” Olson said. “If he borrows $1 million, he might want a few hundred thousand locked in for 20 years, some locked in for five years, and some locked in on a variable rate. “He’s not locked into those rates forever. He can change them if the rate market provides a better opportunity to re-price in the future.” — Martin Ross
Page 5 Monday, September 5, 2011 FarmWeek
production
Weather forecast good for harvest, crop prices BY DANIEL GRANT FarmWeek
The same type of weather pattern — warm and dry — that likely evaporated a good portion of yield potential the past two months is expected to continue and actually be of some benefit to farmers the rest of the crop season. Bryce Anderson, DTN ag
meteorologist, last week at the Farm Progress Show in Decatur predicted a dry fall for much of the Corn Belt. “This is the second year in a row this part of the country has been affected by La Nina,” which contributed to a hot, dry August last year that took the top end of crop yields, Anderson said.
“That means harvest (this year) probably will be dry. So at least you (farmers) can get out what you’ve got left” in crop fields. Anderson predicted rapid crop dry-down this fall will help make this harvest a crisp and fast one. “Harvest (weather) looks to be a pretty good scenario this
Obama seeks streamlined regulation in infrastructure project turnaround BY MARTIN ROSS FarmWeek
As a crucial deadline for the nation’s transportation system approaches, President Obama is pushing major infrastructure initiatives that reportedly would accelerate future roadwork while reducing regulatory roadblocks. The president has asked federal agencies to identify “high impact, job-creating infrastructure projects” that could be expedited through streamlined review/permitting processes. He called for “innovative approaches” in making project review more efficient, especially under the National Environmental Policy Act (NEPA). That’s a major goal for the American Association of State Highway and Transportation Officials (AASHTO), which seeks to speed project approvals. Obama “didn’t give a lot of information” on specific measures, AASHTO program director Jack Basso told FarmWeek. He noted the Federal Highway Administration’s existing “Every Day Counts” initiative aimed at cutting project “development-tofinish” time in half, but argued delays persist largely amid often-overlapping multi-agency requirements. Late last fall, the White House Council on Environmental Quality (CEQ) issued guidance to help agencies reduce paperwork and delays through “categorical exclusions” for activities such as routine infrastructure maintenance that don’t pose significant environmental concerns. “I don’t think EPA (U.S. Environmental Protection Agency) is necessarily the total roadblock,” Basso said. “You have multiple agencies involved in approval and review. You’ll get the EPA part of things done, and then the (U.S. Army) Corps of
Engineers comes along and says, ‘You have to do this now.’ You go through multiple iterations, rather than doing things simultaneously.” Project authorization and funding also are crucial to moving ahead on key highway and related construction. Basso last week attended a White House news conference in which Obama stressed the need to extend the federal surface transportation program, which expires on Sept. 30. Summer debt/deficit debate delayed discussion of the next long-term “highway bill.” AASHTO warns fuel taxes that pay for federal highway programs (18.4 cents per gallon of gasoline, 24.4 cents per gallon for diesel fuels) no longer would be deposited into the Highway Trust Fund if Congress doesn’t act soon to extend surface transportation provisions. The Senate Environment and Public Works Committee supports an abbreviated two-year transportation bill at current funding levels. House lawmakers have proposed highway funding reductions amid reduced trust fund revenues. With less than two legislative work weeks remaining this month, Basso anticipates an immediate short-term highway bill extension — the Senate has floated a four- to five-month stopgap continuation. That might be for the best, he said. Long-term, AASHTO seeks more federal flexibility to help states “get the most value for each dollar” in transportation investment and “financial tools” such as infrastructure credits or tolls to augment trust fund revenues. “I think we’re going to need time,” Basso said. “Right now, there doesn’t seem to be a clear path to solving the money problem or the revenue problem.”
At last week’s Farm Progress Show, Illinois Fire Safety Institute Ag Safety Program Manager Dave Newcomb, left, and field instructor Bill Fulton extract Rescue Randy — a 180-pound, life-size dummy — from a minigrain bin. The pair, who demonstrated the rescue for state lawmakers as part of Illinois’ Grain Handling Safety Coalition, used safety harnesses and a rescue tube to remove Randy, to minimize the risk of becoming trapped in stored corn themselves. The coalition is ramping up grain safety education efforts in preparation for the fall harvest. (Photo by Ken Kashian)
year and not a repeat of what we had two years ago (when cool, wet conditions in the fall of 2009 caused major harvest delays),” he said. Anderson believes La Nina played a key role this season in a weather pattern shift that saw favorable precipitation in June dry up in July and August in much of the Corn Belt, particularly east of the Mississippi River. For instance, Decatur, the host site of the farm show, received just 0.6 of an inch of rain in July and August, more than 5 inches below normal, while temperatures averaged 5 degrees above normal in July and 3 degrees above normal in August. About three quarters of Illinois, 80 percent of Indiana, and 70 percent of Missouri currently are in some level of drought after a wet spring. “All of this happened in the space of about six weeks,” Anderson said. “It’s just amazing.” The situation obviously caused a rapid deterioration of crop conditions. The portion of crops rated good to excellent in Illinois declined from 67 percent to 41 percent for corn and from 64 percent to 48 percent
for soybeans from July 10 to Aug. 29. Darin Newsom, DTN senior analyst, said hot, dry weather and dwindling yield potential have been the main drivers of strong crop prices, which last week were near $8 per bushel for corn and $15 for beans. “We needed to see near-ideal conditions this year (to ease tight stocks-to-use ratios) for corn and beans,” Newsom said. “The market is reacting to this.” The analyst predicted extremely bullish conditions for crop markets during harvest but possible problems in the future. “The question now is not about supplies. The market knows it’s working with a short crop,” Newsom said. “The only thing left to determine now is at what price does demand shut down.” Current supply and demand projections suggest the U.S. must trim about 400 million bushels of corn demand to keep stocks at minimum levels. Feed is the most vulnerable component of fundamental demand, and corn used for ethanol probably is next in line for a reduction if the current trends continue, the analyst added.
Analyst: Wheat likely to lose acres to corn It appears corn harvest will occur in a timely manner this season, despite late planting caused by a wet spring, as warm/dry weather the past two months sped up the crop’s maturation process. But even if corn is harvested on time or possibly early, many farmers in the U.S. may pass on the chance to plant wheat this fall. Commodity price spreads currently favor more corn acres next year, according to Robert Utterback of Utterback Marketing Service in New Richmond, Ind. Meanwhile, dry soils, particularly in the drought-scorched South, are not conducive to wheat planting. “Corn is the king right now,” said Utterback, who was a featured speaker recently at the Illinois Wheat Forum in Highland sponsored by the Illinois Wheat Association. “Wheat, by itself, doesn’t compete.” Utterback believes corn yields lost to poor pollination conditions — Pro Farmer last week projected a national yield average of 147.9 bushels per acre compared to USDA’s previous estimate of 153 bushels — could prompt an unprecedented rally in the corn market between now and Christmas. “The corn market needs about 94 million to 96 million acres to get the corn carry back to an adequate level,” Utterback said. And with corn returns as high as $350 to $400 per acre in some areas, profitability currently favors corn in the upcoming acreage battle. The wheat market, meanwhile, has been supported from feed sales to replace corn. But, at the same time, it could be pressured by an increase in production. USDA last month projected world wheat production this year is up 3.7 percent from a year ago, with major production gains in Russia (up 35 percent) and the Ukraine (up 25 percent). The one area of the U.S. where wheat production should remain strong this year, though, is double-crop country, where farmers can grow 70-bushel wheat followed by at least 25-bushel beans, according to the analyst. “Southern Illinois, southern Indiana, Kentucky, and parts of Missouri and Tennessee are where (a wheat/soybean double-crop) will be economically viable” compared to record-high corn prices, Utterback said. “I think we’ll see a very robust wheat/soybean double-crop in those areas.” Illinois growers last fall planted 740,000 acres of wheat. — Daniel Grant
FarmWeek Page 6 Monday, September 5, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: It was back to summertime last week with temperatures in the mid-90s Wednesday through Friday. We had another 0.5 inch of rain Tuesday afternoon. The corn and beans are slowly moving toward maturity, but it seems as though it is a slow process this year. Most bean fields are still very green and the corn husks are just starting to turn color in some fields, so I don’t think it will be an early harvest. In the case of beans, to have them staying green this time of year probably means they are still adding yield, so we better not complain about that. Hope everyone enjoyed their last holiday weekend before everyone’s attention turns to harvest. Leroy Getz, Savanna, Carroll County: Rain on Tuesday was .065 of an inch. August total was 3.5 inches. We feel very fortunate to continue to receive timely rains with the high temperatures we have been receiving. Fourth cutting of hay is being made and pastures and lawns are green. Corn is maturing naturally. More blight is showing up. Storm-damaged fields will need to be harvested first, but that is still at least two weeks away. Grain bins are being cleaned out. Ryan Frieders, Waterman, DeKalb County: The crops are maturing very quickly. The earlyplanted soybeans are starting to change colors. Corn also is starting to dry down. There has been a lot of corn silage cut in the area. Seed corn is being harvested for the plant nearby. Joe Zumwalt, Warsaw, Hancock County: Harvest is knocking on my door and it is under way in several spots in the area. I have heard yields of 100 to 120 bushels per acre and moistures from 15 to 20 percent. It’s not very often that harvest starts this early in Western Illinois. A few welcome showers came through the area last week, but left only tenths of an inch of rain when inches were needed. The soybeans are extremely stressed. While we had excellent pod counts early, many are falling off or not filling. The spider mites are working on the soybeans as well, but I think many producers are reluctant to put any more money into this crop. After spending a few days at the Farm Progress Show, I was ready to enjoy the holiday weekend and gear up for harvest. I think it is going to go pretty quickly. I’m ending this growing season like a Cubs fan — already looking forward to next season! Ken Reinhardt, Seaton, Mercer County: I had 0.4 of an inch of rain while I was gone to the Farm Progress Show. About the only person I talked to there who was happy with his crops was from northern Kansas. The first harvest report I have heard from here is that corn was a little better than expected. Ron Moore, Roseville, Warren County: We got 0.2 of an inch of rain last week. Not enough to help at this point. We will start chopping corn silage this week. Some early corn is black layered and there will be a few people starting to combine this week also. The beans are filling pods and need a rain to finish the crop. There are not any beans starting to turn yet, but I expect that to happen soon. The creeks are starting to dry up and the grass is very short. We are bringing cattle home now as well. Please think safety as harvest gets under way. Jacob Streitmatter, Princeville, Peoria County: The corn crop is starting to dry down. The early-planted corn and early varieties are just starting to hit black layer in my area. With the nice weather and heat, it will not take long for all the corn to drop moisture. The soybeans are still green, but they have a gray look to them. Some late Group II beans I have are showing some yellowing. I had not heard any local yield results as of Friday, but there should not be any high yields to brag about this year.
Tim Green, Wyoming, Stark County: It was nice at the beginning of last week, then Thursday and Friday were hot and crops started showing stress. Our yards are a little green, but still a little short on moisture. People who are scouting are very disappointed in the early-yield results. Disease is starting to show up in some of the corn, and I see a few bean fields starting to get that little tint like they are starting to turn a little early. People are getting their machinery ready and bins cleaned out. Have a safe fall. Mark Kerber, Chatsworth, Livingston County: It was another hot and dry week here last week, as rains dissipated as they came into Illinois. Saturday was supposed to bring rain and cooler temperatures, so it should be a good week to work on machinery, as harvest will be beginning soon. We went to the Farm Progress Show last week. It is nice to have a more permanent site with paved roads. It seems like we farmers are always researching a new piece of equipment. Producers are anxious to see what kind of yields we will have after scouting fields. As far as producing a great year, we will have to be like the Cubs fan’s philosophy — wait until next year. Ron Haase, Gilman, Iroquois County: It was a dry week. Corn development ranges from the late R-4 or dough stage up to the R-5 or dent stage. Some corn has reached black layer due to premature death of the plant. Otherwise, the most mature corn has the milk line about 75 percent to 80 percent of the way down the kernel. Soybean development ranges from the R-6 or full seed growth stage to the R-7 or beginning maturity growth stage. Most fields are in the R-6 stage. On the way home from the Farm Progress Show, I saw a combine harvesting corn near Monticello (in Piatt County). Local closing prices for Sept. 1: nearby corn, $7.24; new-crop corn, $7.22; nearby soybeans, $14.13; new-crop soybeans, $14.03. Brian Schaumburg, Chenoa, McLean County: Oppressive, record-breaking heat took its toll on everything last week. The milk line on corn is making its way down the kernels as black layer nears. Group II soybeans are turning and later beans could use a drink. Corn harvest will start after Labor Day. Football season starts, Oskee Wow Wow (University of Illinois fight song)! Corn, $7.23, $7.15 fall; soybeans, $14.19, $14.02 fall; wheat, $7.14. Steve Ayers, Champaign, Champaign County: The National Weather Service declared a moderate drought for Champaign and a dozen other counties last week. The severe drought area included the southwest corner of the county, including Ivesdale, and then extended westward to the Mississippi River. It just confirmed what we have noticed for the past two months. Harvest activity is starting as farmers knock off end rows or downed corn. Some beans are starting to yellow. Rain was forecast for the past weekend and it will cool into the 80s this week. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Good day again from this corner of the world where it’s dry, but we certainly could be a lot worse. At least it looks as if we will have some crop to harvest compared to the folks in Texas where, from reports I’ve heard, there is practically nothing. For the month of August, my gauge only picked up 0.1 of an inch, plus a few drops whenever some dark clouds would come up. Our last measurable rain was 0.5 of an inch on July 12. Thursday’s 104 degrees plus the wind didn’t help, either. Some have started filling silo and a few have started shelling in the early-planted fields. Soybeans are still green and may benefit if the clouds could only open up. Be careful as harvest gets under way, especially with the extreme dry conditions.
Carrie Winklemann, Tallula, Menard County: There has been some corn taken out in the southern part of Menard County, and I imagine more farmers will be following suit during the Labor Day weekend and following. The corn has died. The beans are dying and dropping pods. And there looks to be no rain in the near future. We have been in definite drought conditions for more than a month. Please be safe during harvest. Tom Ritter, Blue Mound, Macon County: Consistent weather the last 10 weeks — hot and dry. It was good weather, but warm, for the Farm Progress Show. We continue to be without rain, having only .015 of an inch of rain in the last 10 weeks. Harvest started on corn with yields all over the board. And since this is the April-planted corn, it will be fairly good but still well below average. May corn yields will drop off fairly dramatically, as will any corn back on corn. Many farmers are looking at a 25 percent reduction or more, depending on isolated fields. Soybeans may be an even sadder case, with no rains in August to help with pod fill. There are a fair number of pods, but at this point, the beans within the pods are little blips and will have a lot of difficulty maturing into fairly decent seeds. Soybeans have not started to turn very much at this point, but early-planted corn is being harvested with moistures running anywhere from 15 to 30 percent. Yields and moistures are varying considerably, even within individual fields. Todd Easton, Charleston, Coles County: The very slow start to harvest continued with just a few producers trying fields here and there. The moisture of the crop is coming down very fast and we probably will go from too wet to too dry in the blink of an eye. On our farm, we started on May-planted corn last Thursday, expecting to harvest at around 30 percent after multiple hand samples were brought out of the fields. Much to our surprise, it is coming out of the combine in the low 20s. Unfortunately, as we had anticipated, the final yields are going to be disappointing from what we have seen so far. Early soybean fields started to turn color and ripen. Without getting the rain they needed, the plants, while well podded, have some very small seeds in those pods and will probably be well below average. Can’t win them all. I guess there is always next year. Jimmy Ayers, Rochester, Sangamon County: This past week we received no measurable rainfall. The roads got wet on Tuesday evening, and that was about it. Quite a bit of corn is being shelled. The majority of the yields are a little disappointing. Some of the guys will be getting into a little better corn as we move along. I am hearing anything from 100 up to 170 bushels per acre on the majority of the first rounds. A few guys are hanging around 200 now. Beans seem to be holding up rather well. We actually set a record temperature on Thursday at 102. The old record was 101 set in 1984. There was a report of a half inch rain on the the north side of Sangamon County last week. There is only one field of beans that is turning and one that looks real close, but none has been cut at this point. Some guys are running pretty hard in corn because of problems with charcoal rot and diplodia. You need to get out and check your stalks and see what kind of strength they have. There is quite a bit of concern over that. Doug Uphoff, Shelbyville, Shelby County: We picked corn last week that tested 16.5 percent moisture was making 240. We went to the Farm Progress Show Tuesday and saw a lot of friends there. Mike from Orange County Choppers signed my DeKalb hat after they unveiled the motorcycle made for DeKalb’s 100-year anniversary. They will auction it off next year and donate the money to the Red Cross. The technology at the show keeps getting more advanced. I just wonder who can afford the stuff. Oh yeah, that corn yield was 200 on one end of the field and 40 bushels per acre on the other. More yield updates next week. That corn was planted in April.
Page 7 Monday, September 5, 2011 FarmWeek
CROPWATCHERS David Schaal, St. Peter, Fayette County: Another dry and hot week here. We have gone more than three weeks without rain. The corn crop is changing in a hurry. The corn plants did not mature here, they just died. A little corn has been shelled a few miles north that was planted the first part of April. I heard that it was coming out of the field and across the scale at 16 to 18 percent moisture. Soybeans here are parched. No rain and high temperatures are taking a big toll on them. Farmers are gearing up for harvest. Markets had a decent week up until Thursday. Have a safe week. Ted Kubrick, Jerseyville, Jersey County: The heat was back in Jersey County Wednesday and Thursday. The temperature was above 100 degrees and no rain. The beans are starting to show signs of stress with all the hot, dry weather. The beans are going to be smaller this year. The local service company did some yield checks and found corn from 30 bushels to about 190 bushels per acre. The 30-bushel yield was on light sandy soils and clay knobs. The better corn was on blacker soils that did not have water standing on them during the early rains. Prices at Jersey County Grain, Hardin: cash corn, $7.11; fall corn, $7.02; January 2012 corn, $7.21; cash beans, $13.76; fall beans, $13.79; January 2012 beans, $14.19. Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Dan Mein hart, Montrose, Jasper County: A dry and relatively warm week. The early corn is maturing very rapidly. The beans are deteriorating in the dry and warm weather. It is showing up especially in the lighter soils. Silage choppers are running to get the corn harvested before it dries out too much for quality feed. We are in desperate need of a rain. For the most part, it has been more than a month since a good rain. Cooler weather is predicted this week. There are chances of showers during the weekend. Farmers are cleaning out grain bins, repairing machinery in preparation for harvest, mowing road ditches and waterways, and going to field days, fairs, and the Farm Progress Show. Dave Hankammer, Millstadt, St. Clair County: Labor Day is considered the unofficial end of summer. However, Mother Nature reminded us this past week that summer isn’t over yet. This past week, temperatures reached into the 100s for several days with no rain. Farmers were busy making hay or chopping corn silage. The corn crop is drying quickly down with the high temperatures. The leaves on the plants are turning brown. Check samples of the grain moisture is in the upper 20 percent. Corn harvest is about two weeks off. The soybean crop is slowly filling pods and plants are reaching deep into the soil for moisture. Some additional growth is being added by the plants. A good soaking rain is needed to finish this crop. Local grain bids: corn, $6.92; soybeans, $13.78; wheat, $6.26. Have a safe week.
Rick Corners, Centralia, Jefferson County: Same old story — hot, dry, and windy. It is getting to the point that the only thing a rain will help would be the yards and the pastures.
Kevin Raber, Browns, Wabash County: Another month has slipped by. It is hard to believe it says September on the calendar. Warm days with no rainfall have really dried the early corn. A good rain would do wonders for the bean crop. The Wabash County Yield tour is this week, so my next report should have some kind of yield guess. Ken Taake, Ullin, Pulaski County: Another week of hot and dry weather here in deep Southern Illinois. There was no rain this past week and crops are really suffering. I would guess we are about a week and a half away from starting to shell corn. The early soybeans are starting to turn. Some of the early beans are dropping their leaves from the heat and dry weather. I have heard of a few farmers in the area starting to shell, but have not heard any reports of their actual yields. The Young Farmers did their yield checks. They came up with the Pulaski County yield of 139 and an Alexander County yield of 148. The number of fields checked in Alexander County was somewhat limited due to the acres that didn’t get planted because of the floods. Please be careful as this busy season approaches.
USDA ups farm income outlook despite low yields Corn stalk quality is latest concern
The income situation could have been even brighter, but input prices also skyrocketed
revenues up 20 percent and livestock up 16 percent.” The outlook for next year
BY DANIEL GRANT FarmWeek
Strong demand and recordhigh prices for many commodities apparently will offset lower-than-expected crop yields this year on farmers’ balance sheets. USDA last week increased its forecast for U.S. farm income to a record-high $103.6 billion. If realized, farm income would be up 31 percent from last year. The previous farm income record was $84.7 billion in 2004.
‘Corn was above average. Now, if it’s average, we’ll be happy.’ — Martin Barbre Carmi farmer
this year. “USDA estimates producers put 15 percent more into the cost of inputs,” said Chris Hurt, Purdue Extension ag economist. “So, we have crop
still is positive but not as rosy as 2011. Hurt projected livestock profit margins next year could be flat due in part to higher feed costs. Meanwhile, crop prices
Watch for cornstalk, root rots BY KEVIN BLACK
Compaction, shallow root systems, leaf diseases, wet weather, nutrient leaching, storm injury, and other challenges to the corn crop raise the question of what Kevin Black cornstalk quality will be like this fall. Sad to say, it doesn’t look good for many fields. The stalk rots, as a group, are largely opportunists. They take advantage of existing weak-
nesses to colonize the corntake up essential nutrients and stalk. also affects photosynthetic Unfortunately, there are efficiency. The warm nights plenty of weaknesses to exploit this year and we are already seeing evidence of a great deal of stalk and root rotting. The wet start to the growing season resulted in soil compaction, but it also provided little incentive for the corn plant to produce a large root system. Whatever the cause, the result was root systems that were not well prepared for the hot, dry weather to come. Hot, dry weather limits the ability of the corn plant to
could decline while at the same time many farmers could have fewer bushels to sell, which would reduce overall crop receipts. “Corn was above average (early in the growing season). Now, if it’s average, we’ll be happy,” Martin Barbre, a farmer from Carmi, told FarmWeek at the Farm Progress Show. “A lot of corn that may have yielded 180 to 200 (bushels per acre) now may be 150 to 160.” Elsewhere, Jerry Seidel, Belle Rive, described his corn crop as “scorched” but said his bean yields still could be respectable if his farm
receives a timely shower. “There will be a lot of 80bushel corn,” Seidel said. “The early stuff may be around 120.” Barbre and Seidel both expect a quick harvest as the corn crop is drying down quickly around the state. Farmers also may be anxious to get corn out due to stalk quality concerns. “The stalk cannibalizes itself to feed the ear and you have weak stalks,” Seidel said. “We’ll be in the field early.” Corn harvest in Illinois as of the first of last week was 1 percent complete compared to 2 percent a year ago.
we experienced this summer also waste carbon through stress respiration. The net result is additive stress upon the corn plant. The root and stalk rots take advantage of
this as they infect the corn. As we get into shorter days and cooler weather, we can expect stalk pathogens to gain additional advantage. It will be prudent to prioritize harvest for fields that are at greatest risk from loss of stalk quality. A number of growers already are planning to start corn harvest early this year. Fields that were treated with foliar fungicides may have a bonus of better stalk quality since foliar diseases often predispose the plant to stalk rots. Kevin Black is GROWMARK’s insect and plant disease technical manager. His e-mail address is kblack@growmark.com.
Page 9 Monday, September 5, 2011 FarmWeek
EmErging iSSUES
Rural Development funding 24 Illinois energy projects
Erin Petersen, president of the Illini Dairy Club at the University of Illinois, helps a young Illinois State Fair visitor try her hand at milking a cow at the club’s milk-a-cow booth recently at the State Fair. The dairy club uses the booth to educate fair visitors about the dairy industry and to raise money for its activities. (Photo by Ken Kashian)
U of I milking moments teach children and adults BY KAY SHIPMAN FarmWeek
Technology has changed over the past 29 years, but children at the University of Illinois’ milk-a-cow booth at the Illinois State Fair still ask how cows give milk. “We started the (milk-acow) concept with an educational purpose to let people know where milk comes from,” said Gene McCoy, past adviser of the Illini Dairy Club and longtime coordinator of the milk-acow activity. For $1, a fair visitor got a chance to milk a cow and received an orange-and-blue button denoting that accomplishment and a coupon for a carton of milk donated by Prairie Farms’ young cooperators. Dairy club members help fairgoers successfully obtain some milk from a cow and answer everyone’s questions. This year, about 7,500 fairgoers, ranging from toddlers to senior citizens, milked a cow. Club president Erin
Petersen, a senior in agriculture education from Cropsey, answered many questions from 10 a.m. to 7 p.m. over seven days. “The kids asked, ‘So this is the milk I drink?’ We explained it has to go through a process,” Petersen said. Older children and adults repeatedly asked why dairy cows are so thin. The U of I students patiently explained the differences between dairy and beef cattle, she said. But fairgoers aren’t the only ones who learn from the exchanges. “Some of our students aren’t dairy students, and it sure educates them,” McCoy noted. Petersen added she learned from her experience: “You can’t make assumptions that people know something (about agriculture); you have to start simple and then work up to more in-depth things.” McCoy said he continues to be amazed at milk-a-cow’s popularity. Parents bring their children to try something they loved
U of I energy farm field day slated Sept. 20 The University of Illinois College of Agricultural, Consumer, and Environmental Sciences will hold its annual energy farm field day from 9 a.m. to noon Sept. 20. The event will include a tour of the 320-acre farm and research plots of bioenergy feedstock. Presentations will cover agronomy, biofuel law, ecology, engineering, and entomology. Participants will hear about the latest research on harvesting and storing biofuel feedstocks. The farm is located at 4301 S. Philo Road, Urbana.
when they were young. For some fair visitors, the milk-a-cow area is the first stop before touring the rest of the fairgrounds, McCoy said proudly. Tastes may change, but fairgoers continue to prove the simple experience of milking a cow is one they value.
Twenty-four Illinois farmers, rural small businesses, and an electric cooperative recently were awarded grants to implement renewable energy and energy efficiency measures. The recipients will receive a total of $346,574. “This investment can have a considerable impact on the environment and profitability for agriculture and small business,” said Colleen Callahan, state director for Rural Development in Illinois. The grants are provided through the Rural Energy for America Program (REAP), a 2008 farm bill initiative. Nineteen of the Illinois recipients will use the funding to improve their grain dryer systems or reduce energy use in their grain operations. The other recipients will employ a variety of other green energy options. For example, a family farm in Scales Mound will use an $18,439 grant to install solar panels to generate electricity for a dairy barn and offset 49 percent of the family’s annual farm energy consumption. The farm has 234 certified organic acres in Jo Daviess County. Kraft Fertilizer Inc. in Princeville will use a $13,250 grant to install a geothermal system in a new warehouse.
The new building will replace a warehouse of similar size currently heated by a propane furnace. The new system will use only about 9 percent of the BTUs used by the existing system. Pals Electric Inc. will use a $16,304 grant to install a 10kilowatt wind turbine at its Teutopolis headquarters and replace 67 percent of its current energy usage. KBNT Inc. received an $11,191 grant to install two new blender pumps to replace existing E85 pumps at its Hometown Express stations in Geneseo and Galva. When installed, the pumps will dispense both E30 and E85. MJM Electric Cooperative, which provides service in Macoupin, Montgomery, and Jersey counties, will receive a $12,327 grant to make its Carlinville headquarters more energy efficient with new high-efficiency heat pumps, fluorescent bulbs, and energyefficient double-pane windows. Rural Development grants can finance as much as 25 percent of a project’s cost, up to a maximum of $500,000 for renewable energy projects and a maximum of $250,000 for energy-efficiency projects.
FarmWeek Page 8 Monday, September 5, 2011
production
Higher-yielding corn requires intensive management BY DANIEL GRANT FarmWeek
Fred Below, University of Illinois professor of crop physiology, believes farmers routinely can grow 260-bushel corn now and possibly 300bushel corn in the future. But those high yield goals won’t be achieved through relatively easy, single solutions such as new seed genetics or simply adding more fertilizer to the crop. Instead, Below believes farmers must take a systems approach to corn production and adapt new technology to consistently produce higher yields. “Yield is made when you plant the seed,” Below said at last week’s Farm Progress Show. “It’s all downhill after that.” Below and U of I graduate assistant Adam Henninger identified and ranked the “Seven Wonders of the Corn Yield World” that have the greatest impact on production from farm to farm. The Seven Wonders and a field plot were discussed and displayed at the farm show in an exhibit sponsored by Mosaic Co. “Clearly, the biggest factor is something you have no control over, the weather,” Below said. The weather can impact yields by 70-plus bushels per
acre followed by nitrogen, which can impact 260-bushel yield potential by 70 bushels, based on Below’s research. “The weather and nitrogen constitute more than half your yield,” he said. “If you have weather-induced nitrogen losses, you’re not going to grow 300-bushel corn.” The other “wonders” of corn yield and the yield impact of each: hybrids (50 bushels), previous crop (25 bushels), plant population (20 bushels), tillage (15 bushels), and growth regulators (10 bushels). Below and Henninger conducted two years of field trials in which they compared a hightechnology corn package vs. standard production methods. The high-tech package included the use of MicroEssentials, Mosaic’s granular fertilizer that contains N, phosphorus, sulfur, and zinc; fall N with inhibitors plus a spring sidedress application; triple-stack hybrids; plant population of 45,000 seeds per acre; and a fungicide application. The standard package had a fall N application; conventional hybrids; a plant population of 32,000 seeds per acre; and no fungicide. “We yielded 52 bushels more per acre (with the high-tech
Fred Below, right, University of Illinois professor of crop physiology, discusses the “Seven Wonders of the Corn Yield World” with farmers, left to right, Charlie Hammer, Wisconsin, and Jerry Seidel, Jefferson County, during the Farm Progress Show. (Photo by Daniel Grant)
package), on average, over two years,” Below said. “We routinely can produce 260-bushel yields if we get good weather.” The research suggested higher plant populations could be the foundation to pursuing higher yields, but only if the
fields are managed in coordination with the other yield factors. More plants allow the crop to capture more sunlight. “There is no way you’re going to grow 300-bushel corn with 32,000 plants,” Below said. On the flipside, “you can’t
run the population up if you’re not going to commit to it.” Below added that in order for the systems approach for corn production to have the greatest impact, farmers must first have proper drainage and weed control in their fields.
Seed supply expected to be adequate for 2012 Seed company representatives at the Farm Progress Show in Decatur last week said seed supplies should be adequate for 2012 despite a high probability of lower yields in some fields. “The seed crop has gone through the same stresses as the commercial crop,” said Dave Koehn, Springfield-based regional sales agronomist for Stine Seed. One seed representative at the show projected production of some corn hybrids this year could be off by 20 percent at some locations. “It’s been a challenge in 2011 with drought, windstorms, and spring floods,” said Jerry Harrington, spokesman for Pioneer. “There may be tight supplies for certain products.” But overall, there should be at least an adequate supply of seed for next year. Koehn noted most seed companies hedge their bets by spreading production acres throughout the Midwest and South America to avoid a major shortfall of seeds. “We have contingency plans (for the various crop stresses this year) and we expanded acres,” Harrington said. “We anticipate there will be a plentiful supply of quality seed for 2012.” The seed supply may be tested next year. A
Farm Futures magazine survey of 2012 planting intentions projected plantings will increase by 1.7 percent for corn, 2.3 percent for soybeans, and 3.1 percent for winter wheat. U.S. acres for next year were pegged at 93.87 million for corn, 76.9 million for beans, and 42.4 million for winter wheat. “Farmers are truly planting for the market these days,” said Bryce Knorr of Farm Futures, who conducted the online survey of about 1,000 farmers. “However, that means these intentions could change by spring if the current bull market runs out of steam.” Ron Milby, GROWMARK seed division manager, noted test weights are off for commercial corn so far but overall the quality still looks good. Soybean seed quality should be good as well, although seeds could be small if the crop doesn’t receive rain soon. “We’re pretty much on plan (for seed production),” Milby said. “I believe we’ll have an adequate supply to increase acres next year.” Some of the seed representatives recommended farmers who know of certain products they want for next year consider placing orders early in case supplies of some hybrids are tight. — Daniel Grant
Damage from Irene ‘could have been worse’ Damage from Hurricane Irene, which slammed the East Coast the last weekend of August, “could have been worse,” according to Chris Anderson, spokesman for Country Financial. Country, through the Middle Oak Group based in Salem, Mass., and Middletown, Conn., insures property and vehicles along the East Coast. About 1,000 damage claims
from the storm were filed with Country as of Thursday. The claims “mostly were trees on homes or cars,” Anderson said. “It could have been so much worse.” Irene approached the East Coast as a Category 3 hurricane but eventually deteriorated into a tropical storm. Total damage estimates in the U.S. last week were projected at $7 billion compared to
$20-plus billion that was estimated prior to Irene making landfall. Sectors of the ag industry hardest hit include tobacco farms in North Carolina and Virginia and blueberry fields in New Jersey. The blueberry crop already was harvested this year, but there was concern that floodwater could kill plants and hamper future harvests.
FarmWeek Page 10 Monday, September 5, 2011
Page 11 Monday, September 5, 2011 FarmWeek
Ag events
Central Illinois groups plan local food events Rural Development awards funds missioned by the Edible Central Illinois residents • Local food reception to four Illinois communities Economy Project. may learn about the potential fundraiser at 5:30 p.m. Friday economic impact of locally grown food at several events Thursday through Saturday in Bloomington, Normal, Peoria, and Urbana. The activities are organized by the Edible Economy Project, community partners working to create a local food processing-distribution system in Central Illinois. Ken Meter, president of the Minneapolis-based Crossroads Resource Center, will present his study of the potential economic impact of locally grown food on a 32county Central Illinois region. His study was com-
Activities include: • Free brown-bag discussion from noon to 1 p.m. Thursday in Illinois Wesleyan University’s Joslin Atrium in the Memorial Center, Bloomington. Meter will speak. • Free public presentation by Meter on the economic impact of local food at 6 p.m. Thursday in Heartland Community College’s Astroth Community Education Center auditorium, Normal. • Free public presentation by Meter followed by a panel discussion at 9 a.m. Friday at Central Illinois College’s Crossroads Resource Center, East Peoria.
Organic row crops, grains, forages field day scheduled for Friday The Midwest Organic & Sustainable Education Service (MOSES) will have a field day covering organic row crops, grains, and forages from 1 to 4 p.m. Friday at Jack Erisman’s Goldmine Farms in Pana. The free event will be held rain or shine. Pre-registration is encouraged. The event will include a tour of Goldmine Farm fields and a review of the equipment and seed varieties Erisman uses. Erisman has been farming organically since 1993 and has developed a rotation that includes high-value specialty food-grade corn, as well as cover crops. He farms more than 2,000 acres. Erisman’s long rotation and numerous fields give him the flexibility to deal with weather issues and market demand. He also raises livestock. The Erismans do not buy feeder calves or replacement heifers; bulls also are raised on the farm. They do not use any pesticides, herbicides, or synthetic fertilizers on the land or any antibiotics, vaccines, or hormones on their livestock. MOSES is a non-profit education and resource organization that works with farmers, farming organizations, and government agencies to organize organic farm field days. Field day sessions are open to all farmers, agriculture professionals, and those interested in organic and sustainable farming practices. For more information or to register, go online to {www.mosesorganic.org}, call 715-778-5775, or e-mail angie@mosesorganic.org.
Pasture workshop slated on Union County farm A pasture conservation workshop will be from 9:30 a.m. to 1 p.m. Sept. 23 on the Robert “Carlyn” Light Farm in Union County. Registration is required. Light has used intensive management of his pasture since 1964 and currently grazes 250 head of beef cattle on 1,000 acres. Workshop participants will see Light’s soil and water conservation practices during a wagon tour. Speakers will represent Union County’s Natural Resources Conservation Service (NRCS) and Soil and Water Conservation District (SWCD). Light installed many practices to address soil erosion and nutrient management, according to Keith Livesay, SWCD resource conservationist. “My land was worn out when I purchased it ... gullies the size of semi trucks. SWCD and NRCS have helped me repair my land and make it productive,” said Light. The workshop is a collaborative effort of Food Works, Union County SWCD, and Union County NRCS. The registration fee is $20 and includes lunch and a packet of handouts. Food Works is a not-for-profit organization supporting local and sustainable food systems development in Southern Illinois. For more information, contact Devin Brown, Food Works program specialist, at 618-771-0237 or e-mail him at devin@eatsouthernillinois.org. Registration can be accomplished online at {www.eatsouthernillinois.org}.
at Station 220, 220 E. Front St., Bloomington. Tickets are $65 each. • Free public presentation with question-and-answer period at 10:30 a.m. Saturday at Common Ground Food Coop, 300 S. Broadway, Urbana. The 32 counties included in Meter’s study are: Cass, Champaign, Christian, Clark, Coles, Cumberland, DeWitt, Douglas, Edgar, Ford, Fulton, Iroquois, Knox, Livingston, Logan, Macon, Macoupin, Marshall, Mason, McLean, Menard, Montgomery, Morgan, Moultrie, Peoria, Piatt, Sangamon, Shelby, Stark, Tazewell, Vermilion, and Woodford. Edible Economy is a joint project of the Economic Development Council of the Bloomington-Normal Area, Heartland Community College, The Land Connection, Downtown Bloomington Farmers’ Market, and Uptown Normal Trailside Farmers’ Market. More information is available by e-mailing the Edible Economy at info@edibleeconomy.org.
Four Illinois communities recently learned they will receive USDA grants or low-cost loans totaling $3.116 million to improve public services. The funding is provided through Rural Development’s community facilities program. “This funding will ensure that essential needs, like health care, public safety, and community facilities, are available to make communities more attractive places to live, start or expand a business, and raise a family,” said Colleen Callahan, state Rural Development director. The Village of Galatia in Saline County will receive a $15,750 grant to buy and install an emergency siren that will notify its 1,000 residents about emergencies. Currently, the town lacks an emergency siren. The City of Palestine will receive a $30,750 grant to finish a building that will house a farmers’ market from early spring through late fall. The Indian Grave Drainage District that serves Ursa and Riverside townships in Adams County will receive a low-interest loan of $2.57 million to build a new pump station that will pump excess water into the Mississippi River. The additional pumps will reduce the amount of time to drain the water after severe floods. Southern Seven Health Department, which provides public health services to the seven southernmost Illinois counties, will receive a $500,000 low-interest loan to buy and renovate a building for a new health department facility in Anna. The building will allow the agency to accommodate more than 5,000 patient visits each year. More information on Rural Development programs is available online at {www.rurdev.usda.gov/il}.
FarmWeek Page 12 Monday, September 5, 2011
FB IN ACTION MEAT LOCKER LOW DOWN
Rock Island County Farm Bureau board member Greg Boruff, right, owner of Reason’s Meat Locker Service in Buffalo Prairie, discusses meat processing with state Rep. Robyn Gabel (D-Evanston), center, who recently was “adopted” by the county Farm Bureau. Looking on left to right are Anna Assenmacher, an intern with Gabel; Gary Blanchard, Rock Island County Farm Bureau board member; and Matt Trewartha, Gabel’s legislative assistant. The group also toured county Farm Bureau President Phil Fuhr’s grain farm and discussed several issues, including crop inputs and biotechnology uses in farming. The trio also toured Jill Craver’s organic vegetable farm and Patriot Energy ethanol plant in Annawan. Gabel said she was amazed at the ethanol production process and impressed by the contributions the plant made to the local business environment. The representative and her staff said they learned a great deal and look forward to hosting Rock Island County farmers for a district tour. (Photo courtesy Rock Island County Farm Bureau)
‘ADOPTED’ DISTRICT TOUR
State Rep. Al Riley, left (D-Olympia Fields) shows visiting Peoria County Farm Bureau leaders community education facilities in his legislative district. The visitors, left to right, are Peoria County Farm Bureau manager Patrick Kirchhofer and county Farm Bureau leaders MaryEllen Strode, Arco Rosenow, and Doug Blunier. The Farm Bureau group included Butch Ferrell. They toured the Shirley J. Green Senior Center and the Southland College Prep Charter School, which was a former corporate office that now offers stateof-the-art education technology. They also toured the Matteson Recreation Center, which is attached to the Village of Richton Park Municipal Center. The Farm Bureau leaders and their “adopted” legislator discussed the state budget, the capital bill, and the need to continue improving state infrastructure. The county Farm Bureau leaders invited Riley, who attended Bradley University, to revisit their county in the near future. (Photo by Paul Cope, Illinois Farm Bureau assistant director of state legislation)
CHEESEBURGER INFORMATION
State Rep. Maria Antonia “Toni” Berrios (D-Chicago) chats with Ford-Iroquois Farm Bureau director Buddy Pfingsten, left, and Ford-Iroquois Farm Bureau manager David Treece during the county Farm Bureau’s “adopted” legislator’s Back-to-School Health Fair in Chicago. The Farm Bureau distributed nutritional information and school supplies and showed the large cheeseburger as an eyecatching Agriculture in the Classroom tool. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)
FAIR PROMOTION OF AG LITERACY
Left to right, Bona Heinsohn with Cook County Farm Bureau, and Linda Hardy with Cass-Morgan Farm Bureau distribute agricultural literacy materials to some of the 4,000 attendees at a recent Chicago Kids Fair. The Cook, Cass-Morgan, and Saline-Gallatin Farm Bureaus co-hosted a fair booth sponsored by their “adopted” state legislators, Sen. William Delgado and Reps. Cynthia Soto and Luis Arroyo, all Chicago Democrats. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)
Page 13 Monday, September 5, 2011 FarmWeek
IFB IN aCTION
IFB campaign seminar invigorates candidates, volunteers BY KAY SHIPMAN
FarmWeek Modern political campaigns require more than whistle stops and kissing babies, participants were told during Illinois Farm Bureau’s recent campaign workshop. “This class put a lot of things together. Farm Bureau set the stage that we were there to learn from each other and work together,” said Tom Bennett, a workshop participant from Gibson City and candidate for the Illinois House of Representatives. Over two days, participants learned about campaign structures and strategies and then tested their campaign savvy by running a campaign for a mock candidate. Bennett, who is a Parkland
College trustee, said he gained more insights into “working with people at events and being focused on their issues. I knew it was important, but that was really emphasized.” Campaign management strategies were a highlight for Grundy County Board member Jeremy Ly, who said he will run for office in the next election cycle. “As candidates, we want to micro-manage our campaigns,” Ly said. “It was instilled that a candidate can’t be a micro-manager of a campaign. You have to have people you trust to implement your campaign strategy.” Candidates weren’t the only ones who benefitted from the seminar, according to IFB Director Chuck Cawley, Rochelle, who
Linda Johnson, left, director of policy implementation programs for the American Farm Bureau Federation, discusses election campaign strategies with Lori Laughlin, Illinois Farm Bureau director of issue management. Looking on are Kevin Semlow, seated center, IFB director of state legislation, and participants of a recent IFB campaign workshop. (Photo by Cyndi Cook)
also was one of the participants. Cawley recommended the workshop for individuals interested in volunteering for a campaign. “I have a better understanding (of campaigns) and feel
FROM THE COUNTIES
L
EE — Deadline for teachers to apply for the Lee County Farm Bureau Foundation Ag in the Classroom grant is Sept. 15. To qualify, teachers must be actively teaching in Lee County and be a graduate of one of Illinois Farm Bureau’s Summer Ag Institutes. Download an application from the website {www.leecfb.org}. EORIA — A Stroke Detection Plus health screening will be Wednesday, Sept. 14, at the Farm Bureau auditorium. Members will save $35 on all four screenings. Call 877-732-8258 for
an appointment or more information. OCK ISLAND — Rock Island and Henry County Farm Bureau Marketing Committees will sponsor a market outlook meeting at 6:15 p.m. Wednesday at the Moline Viking Club, Moline. A buffet dinner will be served. Elaine Kub, Agricultural Risk Consulting Group and Market to Market analyst, will be the speaker. Mike Schaver, Gold Star FS grain merchandiser and meteorologist, will provide updates. Cost for the series is $60 and a single session is $20. Call the Farm Bureau office at 309-736-7432 for reservations
Auction Calendar
Thurs., Sept. 8. 7 p.m. Menard Co. Land Auction. Dorothy B. Evers Trust, GREENVIEW, IL. Sanert Auction Service. www.sanertauctions.com or auctionzip.com ID#2473 Thurs., Sept. 8. 1 p.m. Will Co. IL Farmland. PEOTONE, IL. Capital Agricultural Property Services Inc. www.capitalag.com Fri., Sept. 9. 6 p.m. Crawford Co. Land Auction. Finney Family Trust. Parrott Real Estate & Auction Co., LLC. www.sellafarm.com Fri., Sept. 9. 10 a.m. Livingston Co. Land Auction. Wooding Estate Beneficiaries, CHENOA, IL. Immke and Bradleys’ Auction Service. biddersandbuyers.com/immke Sat., Sept. 10. 9 a.m. Consignment Auction. ORCHARDVILLE, IL. Daggs Auction Co. daggsauction.com Sat., Sept. 10. 10 a.m. 3 Farmer Retirement Auction. DONNELLSON, IL. Langham Auctioneers. auctionzip.com Sat., Sept. 10. 9:30 a.m. Farm machinery and miscellaneous. Grace and Kenneth Keighin, CONGERVILLE, IL. Larry Wettstein, Jim Miller and Robert Yoder, Auctioneers. robertyoderauction.com Sat., Sept. 10. 9:30 a.m. Consignment Sale. CONGERVILLE, IL. Les Reel, Owner. Sat., Sept. 10. 10 a.m. Macoupin Co. Land Auction. Dale Smirl, John Hall and Edward Hall, CARLINVILLE, IL. Mike Crabtree, Auctioneer. www.mikecrabtreeauctions.com
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Tues., Sept. 6. 6 p.m. Lawrence Co. Land Auction. MFL Chestnut LLC. Parrott Real Estate & Auction Co., LLC. www.sellafarm.com Tues., Sept. 6. 191.54 Ac. Coles Co. Princeville State Bank, CHARLESTON, IL. Stanfield Auction Co. www.stanfieldauction.com Tues., Sept. 6. 10 a.m. 2,040 Ac. Wenona and Chenoa, IL. EL PASO, IL. Murray Wise Associates, Inc. murraywiseassociates.com Tues., Sept. 6. 7 p.m. EST. 386 Ac. Newton and Jasper Co.’s IN. Murray Wise Assoc., Inc. murraywiseassociates.com Wed., Sept. 7. 10 a.m. Knox Co. Land Auction. Elizabeth and Albert Rossell, GALESBURG, IL. Van Adkisson Auction Service, LLC. Wed., Sept. 7. 605 Ac. Edgar Co. Soy Capital Ag Services, www.soycapitalag.com Wed., Sept. 7. 7 p.m. Menard Co. farm and recreational land. Gaines Epling Farm, PETERSBURG, IL. Cory Craig, auctioneer. www.corycraig.com Thurs., Sept. 8. 6 p.m. Lawrence Co. Land Auction. Black Jewell Inc. Parrott Real Estate & Auction Co., LLC. www.sellafarm.com Thurs., Sept. 8. 10 a.m. Land Auction. Sharon Parsons Loeschen and Janice Parson Walsh, ST. JOSEPH, IL. Jim Clingan Auction & Realty. www.jimclingan.com Thurs., Sept. 8. 5:30 p.m. Real Estate Auction. Litchfield Ntl. Bank, BROWNSTOWN, IL. Langham Auctioneers. www.auctionzip.com Thurs., Sept. 8. 7:30 p.m. Real Estate Auction. Litchfield Ntl. Bank, DONNELLSON, IL. Langham Auctioneers. www.auctionzip.com
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or more information. “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.
more confident in hosting a barbecue or a coffee for a candidate. I know what it’s about,” Cawley explained. Cawley said he enjoyed learning about campaign management structures and coordination of volunteers. In addition to increasing general knowledge about campaigns, Cawley said he also hopes the workshop spurs Farm Bureau members to take action. “The (IFB) board has made it a priority to get more members involved in the political
process,” he said. “Our farmers are good decision makers and great leaders. They have a lot to offer.” As candidates, both Bennett and Ly said they plan to apply ideas they gained from the workshop in their personal campaigns. “I thank Farm Bureau for putting on an election workshop to get candidates elected who have agriculture (issues) in the forefront,” Ly said. For more information about the program, contact Kevin Semlow, IFB state legislation director, at 309-557-2308.
FarmWeek Page 14 Monday, September 5, 2011
prOFiTABiliTy
Autumn: favorite time of the year — usually BY JOHN CRIPE
Having grown up on a farm, fall is still one of my favorite times of the year. I loved the smell of harvest, the excitement of driving the machinery, and the better mood Dad was always in John Cripe once the combine started. My folks still like to tell the story of when I was 10 years old, driving a International M into the barnyard in road gear pulling wagons of ear corn and five of my cousins hanging on for dear life. My relatives from the city were on the porch and nearly fainted in fear. It was never proven beyond a reasonable doubt that the cat with tire marks on it was my fault. However, I am not really looking forward to this harvest, and that’s unusual for me. The crop seems to be showing signs of deterioration by the week. The weather (while not terrible) has been hot at the wrong times and dry at the wrong times. There are a few weather issues starting to develop in China and a few other countries. Nothing big yet, but we need to keep an
eye on world weather. Ending stocks on corn are at one of the lowest levels in history. We need a bin buster, or it’s going to be a wild winter. You don’t need a Ph.D. in agronomy to know it is not going to be a bin buster, at least not in corn. That makes it hard on the
livestock guys, and even corn producers need a steady longterm bull market — not a price explosion that gets the whole world’s attention and kills the long-term outlook. The U.S. economy is weak and the European economy is on life support. Fear of another meltdown has kept the
BY DANIEL GRANT FarmWeek The relatively unknown bacterial leaf disease with a funny name — Goss’s Wilt — is making a name for itself this year in Illinois.
hosted by Soy Capital Ag Services near Bloomington. “We’re seeing a lot more show up.” The pathogen first was identified in Nebraska in 1969, where it was named after R.W. Goss, who is credited with pioneering the early development of modern plant pathology. The two major symptoms of Goss’s Wilt are systemic wilt and leaf blight. It often is identified by tan or gray lesions that run lengthwise on leaves which often are accompanied by dark freckles. Goss’s Wilt slowly moved east, arrived in Iowa in 2006, and most recently crossed the Mississippi River into Illinois and Wisconsin. Producers, even if they are familiar with the disease, can’t do much to control it once it infects a crop. “It’s bacterial in nature so fungicides won’t cure” corn plants infected with the wilt, Gale said. The agronomist advised Illinois farmers, if they haven’t already, to begin checking corn ratings for tolerance to Goss’s Wilt, particularly in fields that previously were infected by the pathogen. Goss’s Wilt in a worst-case scenario can reduce corn yields anywhere from 50 to 100 bushels per acre. “There probably won’t be a lot of devastating yield losses this year (in Illinois due to the wilt), but it is a risk for future crops,” Gale said. “Going forward, we have to look for tolerant hybrids to place in those (most susceptible) fields.” The pathogen can survive on corn residue or weed hosts such as green foxtail or shattercane, so fields that previously had the disease, cornon-corn, high corn residue, or heavy weed infestations are at the most risk for the disease, Bissonnette said. Hybrid selection, along with crop rotation and tillage, are the top modes of defense against the disease, Gale added.
FarmWeekNow.com L e a r n m o r e a b o u t G o s s ’s Wilt and its effect on corn plants at F a r m We e k Now.com.
There have been widespread reports of the disease in cornfields in Northern and Central Illinois, according to Suzanne Bissonnette, director of the University of Illinois plant clinic. Kevin Gale, agronomist with AgriGold, said Goss’s Wilt this year has been referred to as the “disease of the year” in Iowa. “Goss’s Wilt is a relatively new disease to Illinois,” Gale said recently at field day
Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $19.00-$48.56 $33.19 $46.60 $46.60 n/a n/a This Week Last Week 22,298 22,899 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $82.56 $94.88 $61.09 $70.21
Change -12.32 - 9.12
USDA five-state area slaughter cattle price Steers Heifers
This week 112.00 n/a
sources in Asia. So all this could make prices even more volatile this fall than normal, and then a wild winter. Better bring the cat inside. John Cripe is director of MIDCO Commodities. His e-mail address is jcripe@mid-co.com.
Goss’s Wilt could become regular problem in Illinois
M A R K E T FA C T S
Carcass Live
funds quiet lately. That will change if we don’t have decent weather over the next 30 days. Buying dips in prices is what the Chinese have been doing all year. China, the world’s second-largest corn consumer now, may boost corn imports 10-fold by 2015 to feed livestock, according to
(Thursday’s price) Prev. week Change 113.23 -1.23 113.00
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 133.60 -2.48
This week 131.12
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-190 lbs. for 170-199.50 $/cwt. (wtd. ave. 186.19); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8-25-11 8.2 23.4 27.3 8-18-11 10.9 18.8 32.1 Last year 8.6 27.7 53.4 Season total 1481.1 276.1 1766.5 Previous season total 1450.5 240.2 1864.8 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
‘There probably won’t be a lot of devastating yield losses this year (in Illinois due to the wilt), but it is a risk for future crops.’ — Kevin Gale AgriGold agronomist
Milk price still climbing The Class III price for milk adjusted to 3.5 percent butterfat for the month of August was $21.67 per hundredweight, 28 cents higher than the July number. The heat stress seen the last couple of months continues to impact the market. Shorter supplies due to cows not rebounding as quickly as producers hoped are keeping a solid floor under prices. Corn silage harvest is wrapping up throughout most of the state, with yields a little disappointing. The impact of this short crop will be determined in the coming months.
DATEBOOK Sept. 6-8 IAA Bike Ride, across Christian, Logan, Macoupin, Menard, Montgomery, and Sangamon counties. Sept. 9 Tropical maize field day, 10 a.m., Schetter Farm, Brighton. For information, call University of Illinois Extension Christian County at 217-287-7246. Dec. 3-6 Illinois Farm Bureau annual meeting, Palmer House, Chicago. Dec. 5-6 University of Illinois Ag Masters Conference, Urbana. Jan. 10 University of Illinois corn and soybean classic, Mt. Vernon Holiday Inn.
Page 15 Monday, September 5, 2011 FarmWeek
PROFITABILITY Corn Strategy
C AS H ST RAT E GI S T
Supply issues to dominate markets Deteriorating moisture conditions, early corn harvest yield reports, and the looming September USDA crop report will keep the focus on the supply side of the supply/demand equation in the short term. The uncertainty extends to soybeans and spring wheat as well, but not with the same intensity. Talk about corn yields and production will dominate the focus as the report approaches. Soybeans will receive some attention with the relatively tight supply/demand balance. The wheat numbers are of least importance, with the supply focus for that crop already having shifted to next year’s potential crop. As we indicated a couple of weeks ago, USDA yield projections could fall somewhat from its August projections. But because of the ear weight implications derived from the August data, corn yields may not fall far from the August estimate. And there’s reason to think subsequent corn yield estimates may not fall from the September projection and could even end a little higher.
Because the crop is advanced as far as it is, USDA should be able to gather a significant number of ear samples to more accurately forecast the yield for the crops it samples in the field. For the August report, USDA generally uses an average ear weight to calculate yield for the field sampled crops. One could see that producer expectations already were low on the August estimate. They could drop a little more yet, but we don’t believe they will drop much from early expectations. On average, crops that had yields 5 percent below trend from the early 1970s saw the yield decline 2.5 bushels into September, and then mostly flattened out into the final report. In “classic” drought years, the yield declined 4 bushels into September, then flattened out. And on some of those classic years, the final yield was higher. Soybean yields are a more difficult challenge because pod counts and pod size, especially the latter, are difficult to assess until later this month. There is a history for prices to peak before, or early in, harvest in drought years. That suggests production generally is fully discounted well before harvest is complete. And subsequent to that, prices begin to respond to signs of demand erosion.
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ü2010 crop: Wrap up oldcrop sales on strength. The premium for nearby delivery offers no incentive to carry inventories forward. ü2011 crop: Use rallies to $7.90 on December futures for catch-up sales. If you are harvesting early, you might add sales if spot bids are still at a premium to harvest delivery. There’s reason to think this year’s market will follow the traditional “short crop, long tail” pattern. Because of that, plan to wrap up pricing shortly after harvest. Because of the modest futures carry, hedge-toarrive (HTA) contract sales for late winter spring delivery still work for farm-stored grain. ü2012 crop: Use current prices to make a 10 percent sale. Plan to add to that over the next couple of months. vFundamentals: Supply talk should support prices into the Sept. 12 USDA report. But subtle indications already are surfacing that demand is being curtailed. ûFail-safe: If December falls through $7.20, make sure sales are at recommended levels.
Soybean Strategy
ü2011 crop: Use a rally near $15 on November soybeans for catch-up sales. We think this market will unfold in a classic “short crop, long tail” scenario, with the season’s highs coming during, or shortly after, harvest. Over the next month, plan to increase sales, potentially completing them shortly after harvest. ü2012 crop: Get 10 percent of your potential crop priced now. Plan to add to that over the next few weeks. vFundamentals: Supply news will dominate the day-today market until after the Sept. 12 USDA report. More often than not, that yield is the low in drought years, or close to it. Supply could drop a little more, but demand erosion could offset the price implications of any further decline in supply. Domestic crush margins remain dismal. And new export sales continue to fall short of the pace of the last couple of years. ûFail-safe: Make sure sales are at recommended levels if November drops below $13.90.
Wheat Strategy ü2011 crop: The decline back near $7.50 on Chicago December futures looked like a much needed correction. Downside risk should be limited as long as the Southern Plains remain dry. Use rallies for catch-up sales. We may recommend another 20 percent sale if December moves up near $8. Check the Hotline daily. If you need to move wheat out of storage before fall harvest, either get it priced or arrange for commercial storage. The
carry in futures more than pays for commercial storage. We still prefer HTA contracts for winter or spring delivery for sales. vFundamentals: The focus of the wheat trade is the drought conditions in the Southern Plains and talk of disappointing spring wheat crop yields. The extreme drought could hamper winter wheat seedings, but the planting window extends into October. Dryness in Argentina could diminish prospects there if conditions don’t change soon.
FarmWeek Page 16 Monday, September 5, 2011
pERspEcTIvEs
Searching for ‘Rosy Scenario’ The recovery from the Great Recession is faltering. Gross domestic product grew less than 1 percent above inflation in the first half of this year. The unemployment rate remains above 9 percent. Rising oil and food prices helped increase inflation to 3.6 LARRY percent over the DEBOER past year. Consumer confidence is way down. Financial markets are in turmoil — again. It’s not hard to find forecasts for more of the same. For example, the latest Philadelphia Federal Reserve survey of business economists predicted 2012 growth at a tepid 2.6 percent and 2012 unemployment still at 8.6 percent. The August survey was more pessimistic than the one in June. Probably they’re right. It’s hard to see why the economy will do better next year than it’s doing this year. But let’s try. Let’s call upon “Rosy Scenario” to find some
reasons why businesses might increase their production of goods and services and hire more employees. Businesses expand when they think sales will increase. Sales increase when people increase their demands for goods and services. Tell us, Rosy, what could increase demand? How about monetary policy, the actions of the Federal Reserve to reduce interest rates and encourage borrowing and investment? At its latest policy meeting, the Fed pledged to hold the federal funds interest rate near zero for two more years. Mortgage rates and corporate borrowing rates are near-record lows. And monetary policy usually works with a six- to 12-month lag, so perhaps we haven’t yet seen the full impact of the Fed’s money supply increases from the first half of this year. Businesses might start borrowing, buying, and building, which would increase demand for all sorts of goods and services. But, Rosy, businesses still have unused capacity, so why
invest in new plants and equipment? Why build new homes when there are so many vacant homes for sale at ever-falling prices? Try again, won’t you? OK, how about stability in Europe? Greece, Portugal, Spain, and Italy are in danger of defaulting on their government bonds, and this is causing a lot of worry among bankers. Worried bankers lend less. The European Union (EU) is trying to come up with a plan to fix this problem. If it does, financial markets will be more confident and lending will increase. But, Rosy, EU is having a terrible time coming up with anything concrete. The Germans don’t want to foot the bill for a bailout, and the European Central Bank objects to repayment adjustments. We’ll probably see more stopgap measures, and confidence won’t improve. And if there’s an actual default, we could be back in recession in no time. You’ll have to do better than that.
How about a drop in oil prices? Libyan oil has been off the market since the rebellion started. Once the rebels win, the markets will expect the supply of oil to increase, and oil prices could drop — a lot and fast. Consumers would have more money to spend, business costs would decrease, and we’d all feel a little better about everything. But, Rosy, it may take a long time for a new Libyan government to get production rolling, and OPEC may cut output elsewhere to keep oil prices up. Besides, some of the increase in oil prices comes from growing demand in China. I’m just not buying it. Well, how about China? The inflation rate in China is 6 percent and rising, and Chinese officials are concerned. One way to attack the problem is to let the value of China’s currency rise faster relative to the dollar. Imported goods would be
cheaper in China, which would hold down inflation. Chinese demand for U.S. goods would increase, so U.S. businesses would produce more for export. But, Rosy, you know another way China could attack inflation would be to slow its economy with higher interest rates and government spending cuts. That could reduce our exports to China. And any rise in exports is likely to be gradual, not enough to make much of a dent in unemployment anytime soon. All these rosy scenarios seem unlikely. Probably the economy will continue to struggle. But Rosy’s point is, there are some things that could go right. If they do, the economy will improve. Larry DeBoer is a professor of agricultural economics at Purdue University, West Lafayette, Ind. His e-mail address is ldeboer@purdue.edu.
Song (scream) of the cicada serves different purposes in the same area oftentimes will raise their songs in unison, producing a cacophony of sound. The resulting chorus — noise, according to some people — serves to attract females to the vicinity of the high-decibel concert. Once a female comes into view, the male chorister starts singing a different tune, more of a love song, we presume. But to a male cicada all is not love and song. Cicadas often become food items for other animals, including the cicada-killer wasp. When captured by a predator, the cicada sometimes produces another type of sound, described by some as a highpitched scream. The scream apparently works to frighten some predators away, and the cicada lives to sing another day.
Many insects produce sound. The most common insect approach for such an activity is to rub body parts together. This method is very much like dragging your fingernail along the teeth of a comb. That is how grasshoppers, katydids, and crickets sing. TOM But one of TURPIN the best-known songsters of the insect world — the cicada — uses a different approach to sound production. Related scientifically to the smaller leaf and plant hoppers, cicadas are percussionists. They make sound by vibrating a membrane. The volume of the sound produced by cicadas either in a group or as an individual is some of the loudest in the insect world. An individual cicada sound
has been measured at 120 decibels, a volume equivalent to a rock concert or a jet engine. It is no wonder that the Roman poet Virgil was moved to write relative to singing cicadas: “They burst the very shrubs with their noise.” Cicadas can be found in all temperates and tropical climates. More than 2,000 species exist. There are about 180 species of cicadas in North America. All species of cicadas feed underground in their immature form. When the immature cicada is ready to emerge as the adult form, it crawls from the ground and attaches itself to the bark of a tree, post, or any other handy item. At this point, it splits down the back and the adult emerges. The exoskeleton of the immature remains and is often referred to as a cicada shell. Annual cicada The immature life of most cicadas varies from two to five years. In the United States,
dog-day cicadas have such a life cycle and are so named because they emerge during the dog days of summer. These are the cicadas that we hear singing during August and September. Some emerge each year, so such species are sometimes called annual cicadas. Periodical cicadas Another group of cicadas unique to North America is called periodical cicadas. These cicadas have the longest life cycle of any North American insect — either 13 or 17 years in the soil as the immature stage. So there is an emergence every 13 or 17 years in the specific regions of the country where periodical cicadas are found. For instance, periodical cicadas emerged in several Eastern Seaboard states in 1996 and will show up again in 2013. An entomologist by the name of Marlatt numbered each emergence and called them broods in order to keep track of them. The group that
will emerge in 2013 is labeled Brood II and also is called the East Coast brood. Periodical cicadas emerge in May and June so they don’t overlap with the annual cicada types. This means that the periodical cicadas don’t have to deal with an insect known as a cicada killer. But the annual cicadas do. Cicada killers are the largest wasp in North America and get their name because they kill cicadas. The adult female wasp catches a cicada and stings it with a paralyzing chemical. The immobilized cicada is then placed in a burrow that the wasp has dug in the ground. The wasp then lays an egg on the cicada. The egg hatches and the young wasp uses the cicada as food. By the end of fall, the young wasp has completed feeding and forms a pupa, the stage in which it will spend the winter. As is the case with most insects, it is the male cicada that produces sound. Cicadas
Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.
Writer dissatisfied with Obama response
tions asked of him and the wording of his responses. It reminded me of the first encounter he reportedly had with GOP leaders after his election, calling upon him to be reasonable and work with them. It was a haughty “We won,” indicating the manner in which he would soon begin imposing his Marxist agenda
with four dozen czars and numerous executive orders. In spite of some conciliatory campaign rhetoric, that agenda has not changed. From so-called health care bills to environmental regulation by agencies empowering themselves the pattern is anti-producer, anti-small business, and
anti-private property. His comment about the allegedly low capital gains rate illustrates this by forgetting that it is inflation that drives up apparent values and that real property is taxed away as a fine for having made an investment that survived all the other taxes on business.
Perhaps this fact of life was not explained to him at “Harvard Left.” Lest anyone think I am advocating a return to the Republican right, I hasten to add that both parties are guilty at least to some degree of this statist, leftist agenda. DANIEL HARMS, Bone Gap
Editor: Under the picture of President Nelson in the Aug. 22 FarmWeek lead article “Obama comes to town,” one phrase stands out: “You can’t tell me... .” That attitude was reflected in the frustration of the ques-
LETTER TO THE EDITOR