FarmWeek December 6 2010 by Illinois Farm Bureau

ILLINOIS LAWMAKERS debated several issues last week and will revisit several more when they return for an extended veto session the first week of January. ...............2

THE NEW food safety bill would give the U.S. Food and Drug A d m i n i s t r a t i o n n e w p o w e r s, including the right to make mandatory recalls. ......................................5

EXPANDED TRADE is seen as the key to speeding U.S. economic recovery, a White House staffer and Illinois’ senior U.S. Senator tell farmers. ..............................6

Monday, December 6, 2010

Two sections Volume 38, No. 48

Ag groups make push for estate tax relief Tax task force creation a ‘sign of progress’ BY MARTIN ROSS Farmweek

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As a congressional bipartisan task force grapples with the essentials of lame duck tax reform, prospects may be looking up for some level of estate tax relief in 2011. Mere hours after President Obama met with lawmakers to discuss a possible tax compromise, the American Farm Bureau Federation (AFBF) joined with 30 other ag groups to push for “immediate, permanent, and meaningful” estate tax reform. On Jan. 1, the year-long suspension of the estate tax is to end, with farm families and small businesses subject to a $1 million estate threshold and a high 55 percent top tax rate. At “such a low exemption,” as many as 13 percent of U.S. farming operations with owners passing next year could owe estate taxes, AFBF President Bob Stallman warned at a Washington news conference last week. Because real estate accounts for an average 84 per-

cent of a farmer’s assets, “estate taxes hit farm families harder than other small business owners,” he argued. Rural communities “also suffer when farms and ranches downsize or disappear,” and urban-adjacent farmland sold to settle tax debt often is “lost forever to development,” Stallman said. A higher exemption and lower tax rate offer farmers “a better chance to remain in operation when transferring from one generation to the next,” he said. A newly appointed task force charged with breaking Congress’ tax impasse includes Sen. Jon Kyl (R-Ariz.), sponsor of a $5-million exemption. “We’d like to see this addressed once and for all, but I think our biggest concern is going back to the $1 million exemption and the 55 percent tax rate,” Illinois Farm Bureau President Philip Nelson said. “We’re just going to have to

see what options are available when they’re presented to us.” At the recent Illinois Commodity Conference, Senate Majority Whip Dick Durbin said he is seeking estate tax levels “that are reasonable for business and farms.” “Congress can do it, and only Congress can do it, and we need to do it by the end of the year,” the Springfield Democrat told reporters. Durbin noted reports that some lawmakers wish to see estate tax reinstatement made retroactive (the estate tax expired this year) to capture revenues from families who suffered a death in 2010, but he maintained such a move likely would be “contested in court.” AFBF analyst Pat Wolff sees tax task force creation as “a sign of progress, because of who’s on it.” She noted members also include Senate Finance Chairman Max Baucus (D-Mont.), who has sup-

ported at least a $3.5 million exemption; “very moderate” Rep. Dave Camp (R-Mich.), who will chair the House Ways and Means Committee next year; and Chris Van Hollen (D-Md.), a Democrat House leader who’s steadfastly backed permanent estate tax relief. But the group must reckon with Republicans who favor “straight-out extension” of Bush-era tax cuts (which included estate tax relief) and Democrats who would limit

breaks to couples making $250,000 or less per year. Wolff said she believes Senate Majority Leader Harry Reid (D-Nev.) and lame duck House Speaker Nancy Pelosi (D-Calif.) would back an income limit. Sen. Charles Schumer (DN.Y.) has raised the possibility of a $1 million tax relief threshold to address concerns about middle-income tax consequences while heading off a perceived “millionaire’s tax cut,” Wolff reported. Within that debate, she sees estate tax relief as a “wild card.” While lawmakers could extend most tax breaks conditionally in a “two-sentence bill,” they will not “extend (current) repeal,” Wolff said. But once the larger tax impasse is broken, she believes estate tax relief will become merely “one of many things in a big bill,” and thus easier to move than a standalone measure,” Wolff told FarmWeek.

Senators target ethanol credit as EPA sets 2011 goals As the federal government set the stage for sustained ethanol demand in 2011, a pair of influential senators pushed for elimination of tax credits many see as crucial to continued domestic biofuels growth. Last week, Senate Finance Chairman Max Baucus proposed extending the volumetric ethanol excise tax credit (VEETC) for fuel blenders for one year, at a reduced rate of 36 cents per gallon (see page 4). In an earlier letter to Senate Majority Leader Harry Reid (R-Nev.), Sens. Dianne Feinstein (D-Calif.) and Jon Kyl (R-Ariz.) urged expiration of current ethanol tax incentives. That includes the 45-cent-pergallon VEETC, which is due to expire at the end of this month. The senators called ethanol subsidies “fiscally indefensible.” If VEETC were extend-

ed for five years, oil companies would receive at least $31 billion to use 69 billion gallons of corn ethanol “the Federal Renewable Fuels Standard (RFS2) already requires them to use,” they said. The senators’ proposal to eliminate the credit — as well as a 54-cent-per-gallon foreign ethanol import tariff — “boils down to maintaining the status quo of our addiction to foreign oil,” charged Tom Buis, CEO of the biofuels advocacy group Growth Energy. Mark Marquis, president of Hennepin-based Marquis Energy, agrees the credit “needs to be revamped” next year but argues immediate extension is crucial to provide “clarity” for ethanol producers, fuel suppliers, and consumers in the year ahead. Last week, the U.S. Environmental Protection Agency (EPA) announced the total RFS2 requirement for 2011

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will remain at 13.95 billion gallons, including 12.6 billion gallons of corn-based ethanol and 6.6 million gallons of cellulosic biofuels — the latter number far lower than original targets. Marquis reported his ethanol operation is operating at “well over design capacity, producing fuel, raising the price of corn for farmers, and creating jobs for the community.” Profit margins have been favorable for months “and we’re looking forward to 2011 in the ethanol space” — that is, if demand continues to grow amid a still-struggling economy. “I think the VEETC will need to be adjusted in years to come, but we’ve gotten down to the last minute here, and we want to maintain the good improvements we’ve seen in fuel supply we’ve seen from our home country,” Marquis

told FarmWeek. “I think the VEETC will need to be extended in order to keep some continuity for ethanol producers.” National Renewable Fuels Association (RFA) President Bob Dinneen sees EPA’s decision to reduce short-term biomass biofuels targets as “accurately reflecting the difficulties cellulosic biofuel technologies have encountered in obtaining the capital needed to fully commercialize.” But Dinneen urged EPA “to keep cellulosic biofuel targets ambitious so as to stimulate the kind of investment these technologies need to finish commercialization.” While biomass ethanol’s separate blender credit currently does not expire until 2012, Marquis sees corn ethanol — and corn ethanol support — as a “launching See Credit, page 4

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FarmWeek Page 2 Monday, December 6, 2010

STATE

Quick Takes SEEKS YOUR VOTE — Chad Bremmer of Pearl City, vice president of the Stephenson County Farm Bureau (SCFB), has been selected as one of three national finalists for the “Next Generation of Ag” award, which will be presented in Atlanta, Ga., at the AG CONNECT Expo, held in conjunction with the American Farm Bureau Federation annual meeting Jan. 8-11. The winner will be determined by the highest number of votes cast online on the AG CONNECT website, {http://agconnect.com/About/General/Awards/Submi ssions.asp?AC=6&S=88}. Voting concludes Thursday. Bremmer, a fourth-generation farmer, and his wife, Deb, operate a family grain/livestock partnership with his parents and brother. In addition to serving as vice president of SCFB, Bremmer is a member of the Pearl City School Board, a past Illinois Farm Bureau Young Leaders chair, and the 2008 IFB Young Leaders Achievement Award winner. Bremmer’s finalist video can be viewed on YouTube at {http://www.youtube.com/advocating4ag#p/u/0/GqR STmYJIPE) . DEER HUNTERS SUCCESSFUL — Deer hunters shot about 68,040 deer in the first part of the firearm season, according to a preliminary total from the Illinois Department of Natural Resources (IDNR). The first weekend total was up by roughly 1,900 deer compared to last year. The top county totals were: Pike, 1,957; Adams, 1,741; Fulton, 1,721; Jo Daviess, 1,640; and Randolph, 1,520. The county totals include deer hunted on special hunting areas as well as on private land. For the opening weekend, hunters had good weather and faced no challenges of standing crops in fields, said Paul Shelton, IDNR forest wildlife program manager. The firearm season concluded Sunday. IDNR issued more than 370,000 firearm deer hunting permits for the 2010 season. CASE IH SHIPS FIRST ‘GREEN’ TRACTOR — Case IH last week shipped the world’s first tractor that meets the U.S. Environmental Protection Agency’s (EPA) Tier 4A emissions requirements for agricultural equipment. The engine in the new Magnum Series tractor uses Selective Catalytic Reduction (SCR) to reduce particulate matter and nitrogen oxides in emissions while actually boosting power and improving fuel efficiency and durability. The EPA’s Tier 4A emissions standards, which take effect in 2011, mandate cleaner and more efficient engines. These measures will reduce nitrogen oxides and particulate matter produced by 90 percent over previous generation of engines used by agricultural manufacturers.

State Senate delays coal plant action; would expand gaming BY KAY SHIPMAN FarmWeek

An energized General Assembly debated several issues during last week’s veto session. However, lawmakers will revisit several issues when they return for an extended veto session the first week of January. One of the most controversial issues was a bill that would create a special electric rate to create a clean-coal plant, dubbed the Taylorville Energy Center (TEC). The power plant is backed by Tenaska Energy of Nebraska. The Senate chose to delay action on SB 2485 after considering some of the measure’s ramifications, said Kevin Semlow, Illinois Farm Bureau director of state legislation. The bill had passed earlier in the House. IFB opposed the legislation, which would mandate 30-year utility rate increases. Semlow explained the legislation proposes an annual mandatory rate increase of $1.81 per month for residential customers of public utilities. In addition, commercial customers would be charged an additional 0.2 of a cent per kilowatt hour. Although rural cooperative customers would not be charged the higher

rate, businesses that farmers depend on would pay more, Semlow explained. These businesses include grain elevators, processors of agricultural inputs, and ethanol producers. School districts, hospitals, and other entities also would face higher utility rates, he added. TEC is a coal-fired power plant that at full capacity also would burn natural gas to produce power. Although the project would bring economic growth to Taylorville and the Christian County area and could increase use of Illinois coal, the IFB board determined the economic burden of higher electric rates for consumers was not in agriculture’s best interest, Semlow said. During the veto session, IFB worked with a coalition of groups to inform senators about the issues related to the proposal. Senators then delayed action on the matter until they return in January. Funding issues were at the heart of SB 737, which was a comprehensive expansion of gaming in the state. The Senate passed the measure, but the House already had adjourned and was not able to consider it. IFB has a neutral position on the bill.

Vol. 38 No. 48 December 6, 2010 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2010 Illinois Agricultural Association

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

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

State Rep. ‘Rich’ Myers, a former IFB director, dies Richard “Rich” Myers, 62, died of prostate cancer last week shortly after having been re-elected to his ninth term as state representative for the 94th House district. Myers of Colchester served as a member of the Illinois Farm Bureau Board of Directors from 1981 to 1993 and was elected to the Illinois House in 1995. He is survived by his wife, Christine, and daughter, Alison. His funeral was Sunday at Western Illinois University’s Sherman Hall.

Sign-up under way for conservation programs Illinois farmers and landowners may apply now for 2011 farm bill conservation programs administered through the Natural Resources Conservation Service (NRCS). Landowners may apply for the Environmental Quality Incentives Program (EQIP) and the Wildlife Habitat Incentives Program (WHIP). Although applications are accepted continuously,

landowners are encouraged to apply now because the first application ranking period will end Friday. The next cutoff ranking date will be Jan. 7. All future cutoff dates are planned every three weeks after that date. Primarily, the Illinois EQIP funding pool groups are comprehensive nutrient management plans, forest management implementation, grazing land

More provided on-farm fuel storage rules (ISSN0197-6680)

The bill has several provisions, including allowing “racinos” in Illinois. The measure would allow the six horse racetracks in Illinois to have electronic gaming. The legislation is supported by the state thoroughbred, standardbred, and quarter horse organizations. Semlow explained the increased gaming would provide funding for larger horse racing purses and additional funding for horse racing programs.

Farmers whose on-farm fuel storage meets certain thresholds must comply with U.S. Environmental Protection Agency (EPA) Spill Prevention, Control, and Countermeasures (SPCC) rules. The SPCC rule pertains to facilities, including farms, which have above-ground oil storage with an aggregate capacity greater than 1,320 gallons or completely buried oil storage capacity greater than 42,000 gallons. Residential home oil containers and oil tanks smaller than 55 gallons are exempt. The rules also apply to facilities with on-site fuel storage that could reasonably be expected to discharge oil into or on waters of the U.S. Farms that meet the threshold or qualify with a “reasonable expectation of a discharge” must prepare and implement a facility response plan to be kept at the farm and have a secondary containment structure around their tanks or use double-walled tanks. For more information, the SPCC rules are online at {www.epa.gov/emergencies/spcc}. — Kay Shipman

and confined livestock operations, and organic operations. New EQIP program areas emphasized this year are conservation activity plans for drainage water management systems, irrigation water management plans, and nutrient management plans. Statewide applications for the 2011 Conservation Stewardship Program (CSP) also will be accepted until Jan. 7. New incentives and opportunities are available under the new Mississippi River Basin Initiative, the Conservation Innovation Grants, and the Cooperative Conservation Partnership Initiative. These options are especially valuable in addressing unique or pressing local resource problems or concerns. Landowners who want to develop and improve wildlife habitat on their property may apply for WHIP funding to restore grassland habitat or riparian areas. For more information, call or visit your local USDA service center to schedule a time to sign up and start the planning process.

Page 3 Monday, December 6, 2010 FarmWeek

STATE

Scientist warns weeds like higher carbon dioxide levels BY KAY SHIPMAN FarmWeek

A USDA plant physiologist last week delivered good news and bad news for agriculture about increasing carbon dioxide levels in the atmosphere. The good news is some crops, such as soybeans, do well with higher carbon dioxide levels. The bad news is so do weeds, especially invasive perennials. Lewis Ziska, a plant physiologist with the Agricultural Research Service (ARS) in Beltsville, Md., focused on the potential challenges for weed management at last week’s University of Illinois AGMasters Conference in Champaign. Atmospheric carbon dioxide levels have increased 22 percent since 1970, Ziska said. Carbon dioxide is important for plant growth, but not all plant species respond to higher carbon dioxide levels, he added. Genetic diversity in plant populations helps them adapt to environmental changes such as pests, disease, weather conditions, or atmospheric changes. “We think genetic variability will drive a plant’s ability to respond to higher carbon dioxide levels,” Ziska said. “Weeds have a lot of genetic variability compared with the genetic variability in corn and soybeans (which have had genetic diversity bred out of them). What are the chances a (genetically

diverse) weed or an invasive species will respond to increasing carbon dioxide?” Ziska studied the impact of higher carbon dioxide levels on Canada thistle. When the thistles were exposed to higher carbon dioxide levels, they grew two to three times more roots. Scientists also have noted changes in carbon dioxide levels as they relate to other perennial weeds, such as yellow star thistle and perennial sowthistle. “It shows invasive weeds have a bigger response to higher carbon dioxide compared to all weeds,” Ziska said. Researchers don’t know why invasive weeds grow better but are researching the issue to find out, he added. In addition to changing carbon dioxide levels, ARS scientists also are studying the impact of warmer winter temperatures on invasive weeds. For example, kudzu has migrated from the South into the Midwest at a time when Midwestern winter temperatures have become high enough for the invasive weed to become established over the winter. Kudzu also is a carrier of soybean rust, Ziska added. In general, cities are recording warmer temperatures, as well as higher carbon dioxide levels, leading ARS scientists to compare weed plots in city and rural locations.

The weeds grew much taller in the city plots compared to the rural plots, and the succession of perennial to annual weeds occurred faster in the city plots. At the end of a fiveyear study, all the weeds in all the plots were invasive species.

“Are cities harbingers of things to come and seed sources of invasives of the future?” Ziska asked. Urban gardens on vacant lots and rooftops would provide environmental and social benefits, Ziska told Farm-

Week after his presentation. The plants would take up more carbon dioxide, reduce the heat reflection from roofs, and provide fresh produce to urban residents as well as cut down on the occurrence of invasive weeds, he said.

Historic climate changes altering temps, precipitation The world’s climate is changing, but Illinois is not experiencing great change, a panel of scientists reported at the University of Illinois AGMasters Conference last week. The “long-term picture” of climate change has not been uniform around the world or across the U.S., said Jim Angel, state climatologist with the Illinois Water Survey. While the western U.S. has seen a “pretty dramatic warming (trend) over the last 100 years,” Illinois hasn’t experienced that trend due to its location, Angel said. Scientists expect climate changes to vary because of such factors as carbon dioxide and water vapor, both of which influence climate. Lewis Ziska, a USDA plant physiologist, explained higher carbon dioxide levels will have less of an impact in warm, humid climates, and a greater influence in dry areas, such as the poles, deserts, and locations at higher altitudes. Greenhouse gases provide a natural trapping of heat in the atmosphere, “but we’re enhancing the greenhouse effect,” said Don Wuebbles, U of I professor of atmospheric sciences. If the greenhouse effect is “like having a blanket on the earth,” what’s happening now is “like putting an extra blanket on the earth,” said Wuebbles, who served on a national government task force on climate change. Angel added global carbon dioxide levels have climbed in the last 30 years, and as they

have increased so have average global temperatures. While not experiencing dramatic change, Illinois has experienced some changes in climate, Angel noted. He said the state’s last spring frost gradually has occurred earlier in the year. By the end of the century, computer models estimate U.S. and Midwest winters will be 2 to 6 degrees warmer, according to Wuebbles. He said Illinois summers are estimated to be 4 to 10 degrees warmer on average. “We’re (Illinois) in a different climate pattern than we saw in the 19th century,” Angel agreed. Over time, scientists also have seen changes in precipitation. In the early to mid-1800s, there was more precipitation, but the climate became drier by the end of the century until the 1960s. “Since then, we’ve turned a little wetter,” Angel said. Wuebbles added large rainstorms have increased 30 percent in the Midwest. “In general, we expect wetter winters and springs and drier summers,” Wuebbles said. “We can’t predict what’s going to happen. We don’t know how Mother Nature will change. ... We can predict the impact of human activities,” Wuebbles continued. “It is clear there is climate change, and scientific evidence indicates the climate is changing and our children and grandchildren will have to deal with it.” — Kay Shipman

Unwanted horses, equine census issues for forum

U of I’s Monmouth research center gains more land, research potential

Problems related to unwanted horses and the need for an equine census were among the issues discussed at a recent equine issue forum hosted by the Illinois Farm Bureau in Bloomington. In the morning session, IFB Director Chad Schutz talked about the importance of a unified equine industry to help sustain it. A growing problem is an increasing number of unwanted horses, Dr. Dennis French, a University of Illinois veterinary medicine professor, told the group. The problem has been exasperated by the economic downturn and closure of equine harvesting facilities. Several unintended consequences have surfaced due to the September 2007 closing of the Cavel International facility in DeKalb. These consequences include a strong decline in the market value of horses and overcrowded rescue facilities, according to French. French’s ideas to help decrease unwanted horses

Western Illinois agricultural research has gained new potential along with an additional 80 acres for the Northwestern Illinois Agricultural Research and Demonstration Center at Monmouth. The University of Illinois recently bought 80 farmland acres near the Monmouth Center with part of the proceeds from the sale of Bureau County farmland that had been given to the university. The new 80 acres, combined with 80 acres purchased by a local grassroots group in 2009, double the size of the original Monmouth Center. The additional farmland will provide researchers some elbow room — something that has been missing, Eric Aldee, a research specialist at the Monmouth Center, told FarmWeek. The additional land means corn and soybean variety plots will be planted on the university farm for the first time in three or four years rather than on rented farmland, Aldee said. Another issue has been Aldee’s need to rotate research

included educating owners about their responsibilities, providing opportunities for increased funding for private horse rescue and retirement facilities, and options to euthanatize or dispose of unwanted horses. The need for an equine census has surfaced previously in Illinois. Brad Schwab, director of USDA’s National Agricultural Statistics Service Illinois field office, explained the ag census surveys include questions on horse ownership. However, the surveys are not designed to target equine owners, and as a result, likely reflect only a small percentage of equine in Illinois, Schwab said. The meeting was open to individuals whose livelihoods depend on the equine industry as well as horse enthusiasts. After the general presentations, the participants discussed and prioritized industry issues and were asked to discuss the issue recommendations with their respective groups.

plots so the previous year’s research project does not negatively impact the current year’s research. “This (additional) land will allow me to take land out of production for a year and gives

‘ I t ’s r e a l l y n e a t how it all worked out.’ — Eric Aldee research specialist

me more room,” Aldee said. The Monmouth Center was established in 1980. Annually, about 50 different research projects are conducted by up to 12 campus-based leaders and the center superintendent. Research subjects include soil chemistry and fertility, soil management, crop production, weed science, entomology, plant pathology, pest management, and envi-

ronmental quality. The Bureau County land that was sold was known as the Lucille Hart Sudbury endowment farm and has been a revenue source since it was bequeathed to the U of I in 2004. Robert Hauser, dean of the College of Agricultural, Consumer and Environmental Sciences, noted the Monmouth landowner, John Diffenbaugh, has supported the Monmouth Center and that his willingness to sell the university his farmland at this time will help the center continue to be sustainable. Last year, the Northwest Agricultural Education Foundation, a group of concerned citizens, raised money to buy 80 acres and agreed to lease the farmland to the U of I for $1 per year for research activities. The Monmouth Center has made quite a turnaround since a 2006 U of I task force recommended the research station be closed. “It’s really neat how it all worked out,” Aldee concluded. — Kay Shipman

FarmWeek Page 4 Monday, December 6, 2010

ENERGY

New pennycress partnership expected to energize crop BY MARTIN ROSS FarmWeek

A new partnership between energy crop developers and producers should help establish “the full continuum” crucial to powering pennycress as a fuel stock of the future, according to a former USDA scientist and pennycress champion. Pennycress Partners Inc. (PPI) is contracting with Illinois farmers to raise the overwintering crop as a renewable diesel fuel source and bioproduct ingredient in cooperation with Arvens Technology Inc. Illinois pennycress is in its second commercial season, with nearly 1,000 acres planted from Interstate 70 north to

the Galesburg area. Former Illinois Soybean Association President Brad Glenn heads PPI, which was formed by the Ag Guild of Illinois — a 50-farmer group that controls 130,000-plus Central Illinois acres. Peter Johnsen, former director of USDA’s National Center for Ag Utilization Research in Peoria, is Arven’s chief technology officer. “We now have the ag guys to do the contracts, to help growers with procedures, best practices, things like that,” Johnsen told FarmWeek. “Arvens now is focused on the (research and development) and utilization side of the equation.” At the same time, Arvens is

working with USDA, Western Illinois University (WIU), and others to improve pennycress yields and logistics and potentially broaden its production range. Illinois features “interesting variations from north to south,” Johnsen noted: Timing of pennycress planting and harvest is an important factor in growing acreage. Glenn hopes eventually to expand acreage as far north as Interstate 80 and possibly as far afield as Ohio or Nebraska. Currently, pennycress growers must harvest their own crop, but Glenn sees custom harvesting being offered when acres reach an economic level.

Midwest senators defend incentives A bipartisan group of 15 senators last week quickly fired back at their colleagues who are seeking an end to federal ethanol incentives. They warned Senate leaders that allowing the ethanol tax credit to expire would “threaten jobs, harm the environment, weaken our renewable fuel industries, and increase our dependence on foreign oil.” In a letter spearheaded by Senate Budget Committee leader Kent Conrad (D-N.D.) and senior member Charles Grassley (R-Iowa), Midwestern senators urged Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell to make extension of renewable fuel tax and ethanol import tariff provisions “a high priority” on the remaining lame-duck docket. “Our country is spending over $730 million a day on imported petroleum this year — money

that often ended up in the hands of unstable or unfriendly governments,” the new group argued. “This is not the time to reduce the supply of a domestic source of fuel and place at greater risk the thousands of well-paying jobs the renewable fuels industry has created.” The senators — including forthcoming Senate Ag Committee Chairman Debbie Stabenow (D-Mich.), former Ag Secretary Mike Johanns (R-Neb.), and freshman Highland Park Republican Mark Kirk — underscored the need to extend the credit to provide industry “stability” leading into discussion of “responsible reform” of current ethanol tax policy and investments. “Next year, the Senate will be in a position to debate alternative legislative proposals for developing renewable fuels, including proposals to invest in biofuel infrastructure,” they stated.

A conventional combine can be used, and because the seed has a high “bulk density,” it can be easily transported and “stores well,” Johnsen said. One of pennycress’ major appeals is it can be grown outside the spring crop cycle, with harvest in late May or early June. WIU is studying pennycress maturity dates to offer prospective growers more breathing room between crops. Glenn sees pennycress adding $100 an acre to a

farmer’s annual bottom line. A ton of seed (roughly an acre’s yield) generates nearly 150 gallons of oil, and Illinois scientists are eyeing pennycress’ chemical composition in order to capture its value in specialty lubricants and other products. “Applications for ‘natural’ lubricants are creating a lot of interest for pennycress,” Johnsen related. “We’re very encouraged by the potential for pennycress, both as a fuel and as a lubricant.”

NASCAR to use E-15 in 2011 The National Corn Growers Association and its state affiliates, including the Illinois Corn Marketing Board, are among the organizations backing American Ethanol, a partnership that includes biofuels advocacy group Growth Energy and NASCAR. This new partnership, announced last week by NASCAR, comes after the popular racing organization said in October it would fuel all races with E15, a 15 percent corn ethanol blend, starting with the 2011 season. As part of the multi-year agreement, America Ethanol will be highlighted on every vehicle running in a NASCAR race and will be prominent on NASCAR’s Green Flag. In addition, American Ethanol will sponsor a new award for every race and will be featured on-site at race day events.

Industry seeks EPA land use revisions While California traditionally is not seen as a model for ethanol policy, the biofuels industry is urging the U.S. Environmental Protection Agency to follow that state’s lead in revising estimates of ethanol’s land use/carbon impact. Theoretical global indirect land use change (ILUC) related to biofuels feedstock production, processing, and fuel distribution and use has been a major factor in proposed limits on cornbased fuel use relative to other energy sources under California’s low-carbon fuel standard (LCFS). Projections of ethanol’s impact on international cropping and environmental preservation — and therefore on potential new carbon emissions — also have served as a key criteria in EPA’s renewable fuels standard (RFS2) rules. Because of its ILUC-influenced estimates of ethanol’s carbon footprint, EPA has directed that corn ethanol provide a maximum 15 billion of a planned annual 36 billion gallons of federally mandated biofuels use by 2022. But the California Air Regulatory Board (CARB) recently lowered its estimates of ethanol’s carbon impact. An LCFS working group recommended revisions based on adjusted treatment of crop yields on newly converted land, potential carbon sequestration in harvested wood products, and the effect of higher prices on crop yields. The national Renewable Fuels Association argued last week EPA also should re-evaluate its modeling of ethanol “lifecycle” greenhouse gas emissions “to ensure the RFS2 is based on the most up-to-date science and available data.” “Because EPA was represented by two staff members on the LCFS Expert Workgroup that recommended the changes to CARB’s ILUC analysis, we are curious as to whether EPA similarly plans to revisit its ILUC analysis for the RFS2 and incorporate more up-to-date assumptions and data.,” RFA President Bob Dinneen argued.

Credit Continued from page 1 pad” for eventual U.S. cellulosic development. Feinstein and Kyl are co-sponsors of the Imported Ethanol Parity Act, which proposes to level the playing field for ethanol produced in Brazil, India, and elsewhere. They told Reid the U.S. import tariff places foreign biofuels manufacturers at a “competitive disadvantage,” although it originally was created to offset tax credits granted blenders for use of cheaper, sugar-based foreign ethanol.

FarmWeek Page 4 Monday, December 6, 2010

ENERGY

New pennycress partnership expected to energize crop BY MARTIN ROSS FarmWeek

Page 5 Monday, December 6, 2010 FarmWeek

FOOD SAFETY

Senate safety bill aims to enhance current system BY MARTIN ROSS FarmWeek

The U.S. Senate went light on the regulatory stick in approving food safety legislation last week. But the bill may go too far in handing carrots to “local” food producers, according to some ag groups. Sen. Dick Durbin, a longtime advocate of food safety reform, hailed the measure, approved 73-25, as a key step toward “modernization” of federal consumer safeguards. The Durbin-sponsored bill would allow the U.S. Food and Drug Administration to issue mandatory product recalls and provides new regulatory authority over fruit and vegetable production. Durbin told FarmWeek the plan, which must be reconciled with House legislation, lays out a “risk-based” approach that emphasizes monitoring of

“the foods that are most likely to cause a problem.” It proposes product traceback measures in the event of a recall, and offers “dramatically more resources” for imported food inspection, he said. However, the senator stressed the bill is not aimed at burdening growers and farm marketers with onerous new regulations or bureaucracy. Neither the House nor the Senate bills would affect grain farmers, meat and dairy regulation would remain under sole USDA jurisdiction, and farms that currently are not regulated as “food facilities” would not be required to create new records for trace-back. Instead, the plan is designed to tap “resources that don’t exist today,” within the existing multi-agency food safety structure, Illinois Farm Bureau National Legislative Director

1099 amendments fail to clear floor Dueling Democrat and Republican food safety amendments aimed at addressing concerns about forthcoming “1099” tax requirements canceled each other, leaving producers with time for reform but continued anxiety. U.S. Internal Revenue Service 1099 reporting rules are expected to create a paperwork burden for small businesses and farmers. Under new health care law, businesses must issue a federal Form 1099 to unincorporated service and goods providers to whom they pay more than $600 during a tax year. Starting in 2012, producers also will have to issue 1099s to incorporated businesses and providers, covering virtually every ag “vendor” transaction. Separate 1099 repeal amendments by Sen. Mike Johanns (RNeb.) and Max Baucus (D-Mont.) failed in last week’s debate preceding passage of food safety reform legislation. “Almost any time you see Congress put up a side-by-side vote like that, it’s going to fail, because Republicans are going to vote for the Republican amendment, and the Democrats are going to vote for the Democrat amendment,” American Farm Bureau Federation policy analyst Pat Wolff told FarmWeek. “Both amendments failed, and we’re on to another day. (Lawmakers) might put this in an end-of-the-year tax bill, but (1099 requirements don’t) start until 2012, so we have a year to fix it. Everybody hates 1099 — just about every member of the Senate voted for one of the two amendments.” — Martin Ross

Tree guide offers new features An updated guide for identifying trees in Indiana and surrounding states is available from Purdue University Press. The revised and expanded second edition of “Native Trees of the Midwest: Identification, Wildlife Value, and Landscaping Use” includes a new chapter on common exotic species that cause problems in the Midwest. Sally Weeks, lead author, said many of the species were introduced for landscaping but have spread and are overtaking native trees. One such problem species is the Siberian elm, which was brought in as a substitute for dying American elms. The tree is structurally unsound and susceptible to breakage from ice storms. Insects also cause major damage to the tree’s leaves, giving the tree an overall poor appearance. The book includes color photographs and descriptions on how to identify each species. It also shows how each species can be used in landscaping and as an ornamental. Hard-to-find information on the value of tree species to wildlife is detailed. For information or to order the book, call Purdue University Press at 765-494-2038 or go online to {www.thepress.purdue.edu/titles/nativetrees-midwest} and select the revised and expanded second edition.

Adam Nielsen reported. “When Mom makes apple butter and sells it out at the stand with the tomatoes and produce, it’s a lot different story than a major food manufacturer,” Durbin said. “We’re making sure the small producers who are not in big business but who are selling their local handicrafts are not brought into the net of all these federal regulations.” IFB nonetheless is concerned by approval of an amendment allowing a straight-out regulatory exemption for food producers with less than $500,000 in annual sales and who sell the majority of their food directly to consumers within their state or a 275-mile radius of where their products were produced. Groups including the United Fresh Produce Association opposed the amendment, offered by Sen. Jon Tester (D-Mont.). The association’s senior vice president Robert Guenther, argued safety measures “must be based on risk and science, not speculation and ideology,”

warning foodborne risks “have no boundaries as to size of operation, geography, nor whether the product is sold at a farm stand or grocery store.” “Size has nothing to do with food safety,” Nielsen agreed, labeling Tester’s provision an appeal to consumer “perception.” IFB was unsuccessful in seeking an indemnification provision that would compensate farmers wrongly singled

out for FDA recalls. A 2008 salmonella outbreak in jalapeno peppers was wrongly blamed on tomato growers, costing that industry an estimated $500 million in economic losses. That’s “twice as much as this bill costs,” said Durbin, who believes enhanced vigilance under the Senate measure would help prevent future losses due to inaccurate disease investigation or advisories.

House: Senate flubbed procedure A reported procedural error has delayed, at least temporarily, final passage of Senate food safety legislation (see accompanying story). House leadership staff declared the measure, which passed Tuesday, could not clear the House “as is” because it includes provisions that allow the government to collect fees for federal safety/inspection services. Because they would raise federal revenues, Senate-proposed fees technically constitute tax provisions. House rules dictate that tax provisions must originate in the House version of any bill, and a House aide suggested Senate provisions now may have to be wrapped into another House bill and then returned to the Senate for passage once again. Farm Bureau views the Senate bill as more amenable to ag interests than the currently approved House version. A Senate Health, Education, Labor, and Pensions Committee spokesman suggested late last week that a food safety bill still could reach the president’s desk by the end of the month.

Page 7 Monday, December 6, 2010 FarmWeek

COMMODITIES

Livestock groups await decision on GIPSA rules BY DANIEL GRANT FarmWeek

After months of intense debate during an extended comment period, livestock groups are anxious to see USDA’s next move concerning proposed regulations under the Packers and Stockyards Act of 1921. The Ag Department’s Grain Inspection, Packers, and Stockyards Administration (GIPSA) published proposed rules in the Federal

Register on June 23. The new rules seem to take aim at packer ownership of livestock in an effort to address concerns about a lack of competition. The initial comment period was scheduled to end Aug. 23 but the issue created such a firestorm USDA extended the comment period to Nov. 22. Leaders of two of the state’s top livestock groups, who attended the Illinois Commodity Conference in

Bloomington, said the proposed GIPSA rules are one of the biggest issues hanging over the industry. “The GIPSA rules are going to be huge,” said Mike Haag, presidentMike Haag elect of the Illinois Pork Producers Association and a hog farmer from

Sixth-generation farmer elected president of ICGA The Illinois Corn Growers Association (ICGA), like most ag organizations, faces a number of issues that will affect its members both short- and long-term. The experience of ICGA’s newly elected president, Jim Reed, therefore, should come in handy over the next year as ICGA members deal with the looming estate tax issue, get involved in discussions Jim Reed about the next farm bill, and attempt to secure appropriations for new locks and dams on the Illinois and Mississippi Rivers. “One of our long-term goals will be looking at the upcoming farm bill,” Reed told FarmWeek at the Illinois Commodity Conference in Bloomington. “But we’ve also got a lame-duck session (of Congress) that poses some immediate concerns. We’ve got tax issues that have to be dealt with.” Reed, who operates an 1,800-acre cash grain farm in Piatt County, also is concerned about the possibility of the “blend wall” limiting future expansion in the ethanol industry. He believes corn growers can continue to increase yields at a pace that will keep up with demand.

“We all recognize the (yield) gains from technology,” Reed said. “I think the gains will be even larger in the next decade, and biotechnology will be a key component of that. We can double corn yields without doubling inputs.” Reed certainly has extensive experience growing corn and soybeans. The sixth-generation farmer from Monticello has been in production agriculture nearly 30 years. The Reeds also were early adopters of conservation tillage, beginning in the 1980s. “The majority of our farm is in conservation tillage today,” he said. Reed served on the ICGA board for seven years. He previously served on the Piatt County Farm Bureau Board of Directors for 16 years and was president of Piatt County FB for five years. He also served on the Illinois Farm Bureau Activator Executive Committee. Joining Reed in leadership roles are Vice President Jeff Scates of Shawneetown; Treasurer Dan Cole of Plainville; and Secretary Gary Hudson of Hindsboro. Elected to lead the Export Committee were: Chairman Eric Kunzeman of Tremont and Vice Chairman Craig Buhrow of West Brooklyn. Elected to serve on the Industrial Committee were: Chairman Paul Taylor of

White House staffer honored at conference Illinois native and current White House staffer David Lazarus received the Friend of Agriculture Award at the recent Illinois Commodity Conference in Bloomington. The award, presented by the Illinois Beef, Corn David Lazarus Growers, Milk Producers, Pork Producers, Soybean, and Wheat associations, is the top honor handed

out each year at the Commodity Conference. It is given to individuals who contribute to improving agriculture in Illinois. Lazarus currently serves as special assistant and senior policy adviser to Ag Secretary Tom Vilsack. He also serves as senior policy adviser for rural affairs and agriculture at the White House. Lazarus previously served on Sen. Richard Durbin’s staff for ag issues and was the chief architect of Durbin’s comprehensive food safety legislation.

Esmond and Vice Chairman Andrew Goleman of Divernon. Re-elected to serve as directors on the state board are: Taylor (District 1), Buhrow (District 4), Reed (District 7), Goleman (District 10), and Richard Gates of Carmi (District 13). At-large directors elected at the annual meeting are Wayne Anderson, interlocking director with IFB; Hudson, and Tom Groppel of Jerseyville. — Daniel Grant

Livingston County. “The comment period just ended. It will be interesting to see the reaction (to the comment period) and what impact it has on the final rules.” Many livestock producers in Illinois are concerned the proposed GIPSA rules, left unchanged, could eliminate quality premiums, reduce livestock numbers, and ultimately force consumers to pay higher prices at the meat counter. “Here in Illinois we feed a lot of quality cattle,” said Trevor Toland, president of the Illinois Beef Association (IBA) and a producer from Trevor Toland McDonough County. “We’re concerned about losing that competitive edge we’ve gained over the years.” The IBA leader also is concerned the new regulations could threaten the livelihoods

of some local sale barns. Left unchanged, the GIPSA rules would ban buyers at sale barns from representing multiple firms. One study estimated the GIPSA rule could lead to the closure of as many as 200 sale barns nationwide. “That’s a big concern,” Toland said. “It could close down some small custom markets and limit our ability to have a fat cattle market.” USDA as of last week had not indicated if or when it will change the proposed rules. But Haag believes some changes to the rules are forthcoming after such a strong reaction from the industry. “There’s been a big push to make this big vs. small, but I think it will impact all producers,” he said. “Anybody who has a contract with a packer or someone who buys or sells pigs should be concerned.” The proposed rules can be viewed online at {www.gipsa.usda.gov}.

FarmWeek Page 8 Monday, December 6, 2010

EMERGING ISSUES

Disabled farmer program working to survive budget cuts AgrAbility Unlimited seeking donations BY KAY SHIPMAN FarmWeek

Rock Island farmer Brenda Besse walks in the shoes of the farmers who farm while coping with disabilities or health problems. Besse, who lost her right leg in a farm accident, also helps those individuals as the Northern Illinois field representative for AgrAbility Unlimited, which is struggling to survive state funding cuts. Besse of Hillsdale said she wants other farmers to know about the support and services that she didn’t have when her accident happened in 1981. “When I lost my leg, there was no AgrAbility in Illinois,” Besse told FarmWeek. “There wasn’t one until 1991. I became aware of the program and decided that I

wanted to be involved.” AgrAbility is trying to provide services, although the state — which was the primary funding source in recent years — won’t provide any funding for fiscal year 2011. Bob Aherin, AgrAbility Unlimited project director and University of Illinois ag safety specialist, said the program is seeking other sources of funding, including donations. In recent years, the program’s annual $180,000 budget has supported a variety of direct client services as well as training of rural health providers; however, officials have determined a minimum budget of $95,000 would provide basic services,

according to Aherin. “AgrAbility is attempting to raise a minimum of $285,000 in contributions and pledges to allow the program to at least continue basic services for the next three years to meet current demands,” Aherin said. “During this time, there also will be an opportunity to submit a competitive proposal to USDA for program support.” To date, about a third of the three-year funding goal has been raised. The financial partners include the Illinois Farm Bureau, GROWMARK, Illinois Farm Service Agency, John Ullrich Foundation, and several individuals. Aherin said he hopes to

obtain federal and/or state funding to allow the program to expand and meet the needs of farm people with physical limitations so they can be as productive as possible despite their situations. It’s a situation Besse, who raises registered Brown Swiss cattle and grew up on a farm, understands well. “At the very beginning, there’s an emptiness if you don’t have anywhere to turn,” she said. Through her part-time work with AgrAbility and local volunteer ambassadors in each county, Besse said she tries to ensure disable farmers and their families are aware of and understand the services that are available

and how to contact AgrAbility specialists. Many county Farm Bureau managers are among the more than 80 local ambassadors. Any level of contribution would be appreciated, Aherin said. AgrAbility is a 501(c)(3) organization, making donations tax deductible. Checks should be made payable to: University of Illinois AgrAbility Unlimited Program. Contributions should be mailed to: U of I Department of Agricultural and Biological Engineering, 1304 W. Pennsylvania Ave., Urbana, Ill., 61801. For more information, contact Aherin at 217-333-9417 or raherin@illinois.edu.

Producers urged to register for certification workshop The University of Illinois Extension will offer eight Livestock Manager Certification workshops, and producers are encouraged to pre-register to ensure a spot at the session that fits their schedule. The first workshop will begin at 8:15 a.m. Dec. 14 in the McLean County Farm

Bureau Building, Bloomington. FarmWeek will publish information about additional workshops in the future. Advance registration also is encouraged to allow participants to receive a manual in advance, which is important for those planning to take a

written Illinois Department of Agriculture (IDOA) test after the workshop. The state Livestock Management Facilities Act (LMFA) requires producers with operations designed for more than 300 animal units to have manure management certification and to renew the certificate every three years. Producers with more than 300 animal units must attend an approved training session or pass a written IDOA test. Producers with more than 1,000 animal units must attend an approved training session and pass a test. The U of I also offers a series of five online quizzes at no charge. Passing all five quizzes will meet the state requirement of attending a certified livestock manager workshop; however, it will not meet the state requirement for an IDOA exam that is required for all producers with more than 1,000 animal units. Workshops that begin at 8:15

a.m. will end at 12:30 p.m. The IDOA exam will be administered afterward. The 9:30 a.m. workshops will end at 2 p.m., followed by the IDOA exam. Participants who arrive 20 minutes late cannot be certified for attending the workshop. To register for a workshop or buy a training manual or CD with a credit card, call 800-345-6087. Participants do not need a new manual if they have a 2003 or newer one. Advance workshop registration is $30 per person and $20 for each additional registrant from the same farm if registered at the same time. The walk-in registration fee is $92. Manual and CD prices, including shipping, are $62.50 for a manual, $32.50 for a CD, and $87.50 for a manual and CD. For more information, contact Randy Fonner, U of I Extension coordinator, at 217-3332611 or e-mail clmt@illinois.edu, or go online to {www.livestocktraining.com}.

CSP informational meeting Wednesday in Southern Illinois A meeting to explain the Conservation Stewardship Program (CSP) will be from 10 a.m. to 1 p.m. Wednesday in the Rend Lake College marketplace, Mt. Vernon. A meal and refreshments will be provided. CSP is administered by the Natural Resources Conservation Service (NRCS) and is a voluntary conservation program. Eligible land includes cropland, grassland, prairie, improved pastureland, rangeland, non-industrial private forestland, and agricultural land. The meeting is sponsored by the NRCS and the Illinois Stewardship Alliance.

Farmers who enroll and are accepted receive a fiveyear CSP contract with a payment cap of $200,000. In 2009, Illinois had 175,298 CSP acres, which involved more than $4 million in payments to farmers, ranchers, and forest owners. However, interest in CSP has been low among Southern Illinois landowners. Although CSP applications are accepted continuously, landowners are encouraged to apply now because the first application ranking period will end Jan. 7. For more information, contact your local NRCS office.

Page 9 Monday, December 6, 2010 FarmWeek

FB IN ACTION

GROWMARK donation aids IAITC program Seven-year total reaches $405,000 Fourth graders in Mason County might not wear their hearts on their sleeves, but they are wearing corn on their T-shirts. Volunteers from Sunrise Ag Service Co., a GROWMARK member cooperative, and the Mason County Women’s Committee teach students at Havana, Midwest Central, and Illini Central schools about corn production and products as part of the Illinois Ag in the Classroom (IAITC) program. Each student draws a picture depicting what they learned. One picture is chosen from each of the three schools to be printed on T-shirts, which are giv-

en to the students, their teachers, and the principals. Educational activities such as this one are important tools in teaching today’s children the origin of their food, fiber, and fuel. The IAITC program is dedicated to creating agriculture-based curricula for K-8 students and teacher training. Through local volunteer support and donations from affiliated organizations, IAITC is able to reach many students throughout the State of Illinois each year. “The annual support from agriculture-minded organizations like the GROWMARK System allow IAITC staff and ag literacy coordinators to continue providing free resources and training to teachers across the state,” said Susan Moore, director

SENATOR’S EQUINE INDUSTRY TOUR

State Sen. Jacqueline Collins (D-Chicago) chats with Cook County Farm Bureau Director Gerry Kopping, owner of Kopping Farms, during a recent farm tour with the Cook County Farm Bureau. Kopping has a hay and grain operation, raises beef cattle, and runs a horse stable. Collins learned about the state’s equine industry and gained information about agricultural issues. (Photo by Bona Heinsohn, Cook County Farm Bureau)

of the IAA Foundation, whose primary role is to fund education, research, and charitable activities that benefit Illinois farm families and agriculture. “With less reliance on state funding, it is even more imperative to receive support from industry partners, and GROWMARK has shown its belief in our program by its financial support and through local volunteerism by FS member cooperatives. We are grateful to have such a strong and collaborative relationship.” The FS Seed Division of GROWMARK recently renewed its commitment to Illinois IAITC programs with a donation of more than $56,000. The FS Seed Division has provided annual contributions since 2003. One-half of the donation is used for direct grants administered by FS member cooperatives at the local level. This year’s contribution brings the seven-year total to more than $405,000.

Midwest Central School fourth grader Chase Bender, son of Kim and Scott Bender of Manito, displays the picture he drew illustrating corn production that was chosen as a winner and replicated on T-shirts that were given to all fourth graders, their teachers, and their principals. Looking on are Mason County Farm Bureau Women’s Committee member Nancy Garlisch and Courtney Thomas of Sunrise Ag Service Co. Samantha Roch, daughter of Don and Penny Roch of Havana, was the Havana school winner, and Isabel Strube, daughter of Julie Strube of San Jose, was the Illini Central winner. (Photo courtesy of Mason County Farm Bureau)

FarmWeek Page 10 Monday, December 6, 2010

RURAL ISSUES

‘Adopted’ legislator gives keynote speeches, tours Saline, Gallatin counties BY CHRISTINA NOURIE

State Sen. William Delgado (D-Chicago) focused on bridging the gap between urban and rural residents during his two-day visit with his “adopted” farmers in Saline and Gallatin counties. Delgado and his aide, Ivan Gonzalez, talked with farmers and toured agricultural operations in the two counties. The senator also gave the keynote address for each county Farm Bureau’s annual meeting. During his speeches, Delgado touched on his own family’s agrarian background in Puerto Rico.

The senator is working with the Saline and Gallatin Farm Bureaus to organize a farm tour to Puer to Rico next year.

The senator visited Bunge North America Grain Elevator on the Ohio River at Shawneetown; met with farmers at the Ellis grain farm; toured Dinger Bats, a small business that makes bats and other baseball equipment; made stops at several area coal mines; and discussed rural health care needs during a visit to a local health clinic. The senator talked about many issues in discussions with several county Farm Bureau members. Those included mineral rights, the estate tax, sales tax exemptions on agricultural inputs, and the need for a more business-friendly climate in Illinois. Delgado also spent time with his legislative colleagues, Sen. Gary Forby (D-Benton) and Rep. Brandon Phelps (D-Harrisburg). The senator is working with the Saline and Gallatin Farm Bureaus to organize a farm tour to Puerto Rico next year. He also plans to return to Southern Illinois to see planting in the spring. Christina Nourie is the northeast legislator coordinator for Illinois Farm Bureau. Her e-mail address is cnourie@ilfb.org.

State Sen. William Delgado (D-Chicago), gestures as he chats with Gallatin and Saline County Farm Bureau members during his recent two-day farm visit with his “adopted” county Farm Bureau. From left are Gallatin County Farm Bureau board member Robert Wilson, Saline County Farm Bureau board member Tom Wilson, Delgado, and Pervis Ellis. Delgado toured the Ellis Brothers Farm near Harrisburg. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)

Websites allow farmers to connect with consumers BY DANIEL GRANT FarmWeek

How do farmers educate and connect with U.S. consumers when about 98.5 percent of them aren’t actively engaged in farming? Two of the keynote speakers at the recent Illinois Commodity Conference — David Martosko of the Center for

Consumer Freedom and Michele Payn Knoper of Cause Matters Corp. — suggested farmers go to where more and more consumers congregate every day, websites such as Facebook and Twitter. “People (via social media) are talking about food and farming, but if you’re not there, how do you know Michele Payn what they’re Knoper saying?” Knoper asked the crowd of Commodity Conference attendees. “They (consumers) need to know the people behind the product.” The number of people on Facebook reached 150 million nearly three times faster than the adoption of cell phones, and the current number of Facebook users (550 million) is larger than the population of the U.S., Knoper said. Meanwhile, an estimated 50 million tweets (short messages on Twitter) are sent each day. “It (social networking) offers a tremendous opportunity for leadership,” Knoper said. “You can reach a far wider audience than you ever expected.” Martosko has taken advantage of the growing number of people using social media and websites to find information about food and agriculture. He helped start the website {HumaneWatch.org} that is “keeping a watchful eye on the Humane Society of the United States (HSUS).” Martosko said the farm community mostly has played

defense thus far in the public relations game and “this is our attempt to play offense.” The site reportedly gains 1,400 new users each day. HumaneWatch attempts to show that HSUS actually is a lobbying group with an agenda to eliminate the livestock industry and meat consumption rather than a group that promotes pet David Martosko shelters, as many consumers seem to believe. A recent public opinion poll found 71 percent of respondents believe HSUS is an umbrella group that represents pet shelters across the country, according to Martosko. “They (at HSUS) actually give less than 1 percent of their budget to local pet shelters,” he noted. Martosko urged farmers to connect with consumers to clear up myths about agriculture and help “defang” HSUS. “You’ve got stories to tell that are compelling,” he said. “You can’t take agriculture for granted because it could be taken away from you at any moment.” HSUS recently dumped an estimated $2 million into a campaign that passed a Proposition B in Missouri. The act, scheduled to take effect next year, will limit the number of breeding dogs that can be housed at one facility. Opponents fear the measure is the first step toward excessive regulation of all forms of animal agriculture in Missouri.

Page 11 Monday, December 6, 2010 FarmWeek

SPECIALTY GROWERS

Illinois Specialty Crops Conference Jan. 5-7 in Springfield The Illinois Specialty Crops, Agritourism, and Organic Conference will be held Jan. 5-7 at the Crowne Plaza Hotel in Springfield. Four pre-conference (concurrent) workshops will be offered on Wednesday, Jan. 5. Those are “Pumpkin Production and Pest Management,” “High Tunnels: Tomatoes and More,” “Good Ag Practices: Making a Farm Plan and Becoming GAP Certified,” and “Expanding Farmers Market Opportunities.” On Thursday and Friday the conference will kick off with an opening session entitled “Is Your Operation Market Ready? Understanding the Expanding Market for Local Foods” by Julie Fox of Ohio State University. The remainder of the conference will include the traditional concurrent breakout sessions on fruits, vegetables, herbs, irrigation, agritourism/marketing, organics, and business management. Thursday evening will feature a banquet followed by the announcement of the annual cider contest winners and comments from Ken and Barb Hall of Edwards Orchard in Poplar Grove. Peach and apple production will take center stage of the fruit breakout session, with talks on insects, diseases, and fertility management, among others. Mike Parker, North Carolina State University, will discuss apple and peach production and fruit quality issues. Other topics focus on small fruit and strawberry production as well as a session on the fruit industry from women owners and co-owners. Topics in the vegetable session will range from disease, insects, and weed management

Auction Calendar Tues., Dec. 7. 11 a.m. 80 Ac. Woodford Co. Eleanor C. Kahn Trust, WASHBURN, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Tues., Dec. 7. Consignment Auction. DECATUR, IL Taylor & Martin Real Estate/Ag Sales LLC. www.tmras.com Wed., Dec. 8. 10:30 a.m. Land Auction Vermilion Co. HOOPESTON, IL. Farmers National Company. www.farmersnational.com Fri., Dec. 10. 10 a.m. 312.05 Ac. LaSalle Co. Pam Stack, David Edgecomb and Wayne Cantlin, UTICA, IL. Dick McConville, Marty McConville and Joe McConville, Auctioneers. Sat., Dec. 11. 10 a.m. Farm Machinery Consignment Auction. HILLSBORO, IL. Langham Auctioneers. www.auctionzip.com auctioneer id #14627 Sat., Dec. 11. 9 a.m. Consignment Auction. MAQUOKETA, IA. Power Auction Service. www.powersauction.com Sat, Dec. 11. 1 p.m. Land Auction. The Lorna D. Kelly Trust, BOND CO. Mark Krausz Auction Service. Sat., Dec. 11. 10 a.m. Farm and Recreational Land Auction. Robert M. Cupi, Mary T. Culp, Lydia A. Ierulli Crilly, ARMINGTON, IL. Shelabarger Auction Co.

to production problems of sweet corn, tomatoes, peppers, cole crops, and crucifer (Brassica) greens. Tim Cooling, University of Kentucky, will discuss earlyseason transplanting of sweet corn, and Rick Foster, Purdue University, will talk about corn earworm management in sweet corn. The agritourism/marketing track will feature sessions on merchandising, sales, and website promotion; tourism programs and signage information; getting media savvy; agritourism liability insurance; and culinary agritourism. Ohio State University’s Fox will speak on “Social Media Marketing.” Herb concurrent sessions

will include subjects such as using social media (Facebook, Twitter, and more) to market your products, treatments for basil downy mildew, transitioning to organic greenhouse production, seasonal herbs, and the herb of the year. James Simon, Rutgers University, will talk on “Marketing Fresh and Processed Herbs to the Nutraceutical Market,” and “Rutgers Research Report on the Fight Against Basil Downey Mildew.” Organic production joins the conference again this year with two concurrent tracts of educational programming focusing on the following areas: integrated organic vegetable production systems,

grain and livestock systems, fruit production, and cultural practices. Lisa Kivirist, Kellogg Foundation, Browntown, Wis., will kick off the two organic sessions with “Cultivating Diversity: A Recipe for Organic Opportunity.” The 22nd annual cider contest and the ninth annual hard cider contest again will be held in conjunction with the conference. For more information, contact Elizabeth Wahle, U of I Extension, at 618-6929434 or wahle@uiuc.edu., or refer to the Illinois Specialty Growers Association’s website {http://www.specialtygrowers. org/confagenda.htm}. The trade show has spaces for more than 60 exhibitors

with plenty of time allowed between sessions to visit with exhibitors. Space is still available for those wishing to exhibit their specialty crop products or services. To receive registration materials or to obtain exhibitor information, contact Diane Handley at 309-5572107 or handley@ilfb.org. A detailed conference agenda can be viewed at {www.specialtygrowers.org}. The Crowne Plaza Hotel is reserving a block of rooms for $85 per night plus tax. Call the hotel directly at 217-5297777 to make your reservations and ask for the Illinois Specialty Crops, Agritourism, and Organic Conference rate.

FarmWeek Page 12 Monday, December 6, 2010

FROM THE COUNTIES

UREAU — Wellness screenings will be from 9 a.m. to 4 p.m. Monday, Dec. 20, at the Farm Bureau office. Screenings will include carotid arteries, abdominal aortic aneurysm, peripheral artery disease, and osteoporosis. Cost is $90. Call 877-7328258 for an appointment. ARROLL — The annual meeting will be at 10 a.m. Thursday, Dec. 16, at the Farm Bureau office. Call the Farm Bureau office at 815-2443001 for more information. HAMPAIGN — The Farm Bureau winter meeting series continues with “The State of the State — Financials” meeting at 7 p.m. Wednesday, Dec. 15, at the Farm

C C

Bureau auditorium. Kevin Semlow, Illinois Farm Bureau director of state legislation, will be the speaker. Call the Farm Bureau office at 352-5235 or visit the website {www.ccfarmbureau. com} for more information. • Farm Bureau and Country Financial will sponsor a free informational dinner buffet at 5:30 p.m. Tuesday, Dec. 14, or a breakfast buffet at 7:45 a.m. Wednesday, Dec. 15, at the Farm Bureau auditorium. Rick Morgan, Country Financial senior financial security consultant, will discuss estate planning, retirement planning, and long-term care issues. Call the Farm Bureau office at 352-5234 for reservations, or visit the website at {www.ccfarmbureau.com}

for more information. EWITT — A spill prevention, control, and countermeasures meeting to explain Environmental Protection Agency rules for on-farm storage of oil and fuel will be at 1 p.m. Thursday, Dec. 16, at the DeWitt County University of Illinois Extension office. Nancy Erickson, Illinois Farm Bureau director of natural and environmental resources, and Don Herring, Evergreen FS, will be the speakers. Call the Farm Bureau office for more information. OUGLAS — Illinois Farm Bureau District 12 Young Leaders will sponsor the Illini Farm Toy Show Jan. 7-9 at the Holiday Inn, Urbana. Open-

room trading, a farm toy consignment live auction, and a sanctioned kiddie tractor pull are the main events. Adult admission for Friday and Saturday is $3; children ages 6-12 are $2; and under 6, free. A free-will donation on Sunday will benefit Ag in the Classroom programs. Call Alan Chesnut at 217247-2644, Kurt Wolken at 217-202-2730, or the Champaign, Douglas, or Vermilion County Farm Bureaus for more information. E E — A stroke detection plus screening will be from 9 a.m. to 4:30 p.m. Thursday, Dec. 16, at the Farm Bureau office. Farm Bureau members may receive all four screenings for $90. Call 877-732-8258 for an appointment.

• Farm Bureau is selling Beanpod candles. Stop by the office from 8 a.m. to 4:30 p.m. to purchase the candles. E O R I A — Wall calendars are available to Farm Bureau members at the Farm Bureau office. The calendars feature colored photos submitted by members, USDA crop reporting dates, and Farm Service Agency deadlines. The first calendar is free with additional copies for $3. • Florida citrus and nut pickup is Wednesday, Dec. 15, at the Farm Bureau auditorium. Bring a canned or non-perishable food item to be donated to the Peoria Area Food Bank. • A stroke detection plus health screening will be Wednesday, Dec. 22, at the Farm Bureau auditorium. Four screenings are available. Members will save $35 for four screenings. Call 877-7328258 for an appointment. TARK — The annual meeting, which will be a business meeting with no additional events planned, will be at 7 p.m. Tuesday, Dec. 14, at the Farm Bureau office. Call the Farm Bureau office for more information. INNEBAGO — Farm Bureau will sponsor a bus trip Thursday, Dec. 16, to Purfekt Family Red Barn Theater. Breakfast will be at 7 a.m. at the Farm Bureau office before leaving. Cost is $53, which includes breakfast and theater. Call the Farm Bureau office at 815962-0653 for more information or send check for reservations to the Farm Bureau office.

“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.

Auction Calendar Sat., Dec. 11. 9:15 a.m. Farming and Excavating Eq. John Pat and Sharon Dartt, CARMI, IL. Jamie Scherrer Auction Co. www.jamiescherrerauction.com Mon., Dec. 13. 1 p.m. Ford Co. Land Auction. PAXTON, IL. Schmid Auction and Realty Co. www.schmidauction.com Thurs., Dec. 16. 9:30 a.m. 238 +/- Ac. Knox Co. Estate of Doris R. McKinty, YATES CITY, IL. Col Gail Cowser and Col. John H. Bliss, Auctioneers. www.cowserauctions.com Fri., Dec. 17. 10 a.m. Green Co. Land Auction. Bernard L. Bowman Estate and Ruby B. Bowman Estate, PATTERSON, IL. Worrell-Leka Land Services, LLC. www.worrell-leka.com Fri., Dec. 17. 10 a.m. Farm equipment. Robert and Sandra Broadbent, GENESEO, IL. Stenzel Auction Service. www.stenzelauction.com Fri., Dec. 17. 10 a.m. Land Auction LaSalle Co. Leroy Burd Estate, EARLVILLE, IL. Espe Auctioneering. Fri., Dec. 17. 8 a.m. Unreserved Public Auction. CASEYVILLE, IL. Ritchie Bros. Auctioneers.

Page 13 Monday, December 6, 2010 FarmWeek

EDUCATION FUTURE AG TEACHERS

Above, Illinois State University ag education professor Dick Steffen, center, and ISU ag students Amie Burke, second from right, and Kathryn Shallenberger, right, chat about potential teaching careers with two of the 130-plus high school students from across Illinois who participated in the annual Elite Conference held in the Illinois Farm Bureau Building in Bloomington. Below, Kevin Daugherty, Illinois Farm Bureau education director, shows FFA members how to use a paper plate to create a learning activity about tree growth during the recent annual Elite Conference, held in the IFB Building in Bloomington. Daugherty provided Agriculture in the Classroom materials and helped the students prepare to teach ag-related lessons and activities to younger students. (Photos by Kay Shipman)

U of I Extension names unit educators The University of Illinois Extension has named 118 educators who will serve in the 26 new multi-county Extension units across the state, officially starting on July 1. Cook County remains as a single-county operation. About two dozen educator positions were not filled. Those positions will be advertised nationally, and searches will be conducted in the coming months. Maintaining and strengthening the 4-H youth development program was a high priority in most counties, and the new hires reflect that, said Robert Hoeft, U of I interim associate dean for Extension and outreach. Local Extension council volunteers worked with staff to prioritize educator needs, and the new organization demonstrates Extension’s commitment to meeting the most critical needs at the local level, Hoeft said. Hoeft explained the reorganization means some educators will serve a more limited geographic area than they did in the past. Under the previous organi-

zation, locally funded educators served only one or maybe a couple of counties, while many state-funded educators worked in dozens of counties. Under the new system, most educators will serve three to seven counties. Money saved by closing the regional Extension Centers and reducing other administrative overhead will be redirected to support local educators, according to Hoeft. Reallocated state and federal dollars will provide about

one-third of the funding needed for the new unit-based educators, in addition to available matching money from the state. However, local support from county government boards and other funding sources is as important as ever, said Hoeft. “State and federal dollars are allocated on the basis of local support, so maintaining the local funding is absolutely crucial to the survival of Extension programs at the unit level,” he said.

More pork donated to aid needy

As part of the Pork Power: Partnering to Fight Hunger in Illinois campaign, the Illinois Pork Producers Association (IPPA), along with the Illinois Corn Marketing Board and the Illinois Soybean Association, last week announced the donation of more than 14,000 pounds of ground pork to the Midwest Food Bank (MFB) in Bloomington. Donated pigs are processed by Gridley Meats, which delivers approximately 3,000 pounds of donated pork to the MFB each month. The pork is then distributed to needy families throughout Central Illinois. In 2008, IPPA launched Pork Power with the goal of helping fight hunger in Illinois. In three years, Pork Power has generated more than 200,000 pounds of pork — enough for more than 800,000 meals — for families throughout Illinois. The MFB, whose president is David Kieser, began in 2003 by serving about 10 food pantries in McLean County. Today, it serves more than 500 organizations across the Midwest. The food given out each month now reaches more than 100,000 people.

FarmWeek Page 14 Monday, December 6, 2010

PROFITABILITY

Nutrient farms: Will you be one in the future? BY CHUCK SPENCER

Nutrient management is an important step in the crop planning process. Nutrient levels in streams and bays are a focus of state and national agencies. Agriculture has a productive role to play in the develop-

ment of regulations, using science as a basis for our decisions and practices. Officials in Washington, D.C., are working on immediate regulations on water quality and nutrient management. The U.S. Environmental Protection Agency (EPA) is con-

Milk price drops $1.50 The Class III price for milk adjusted to 3.5 percent butterfat for the month of November was $15.44 per hundredweight, a $1.50 decrease from the previous month. The lower price couldn’t have come at a worse time. Dairy margins have been razor thin recently, and producers are still reeling from 2009. Producers are hoping this is a short-term adjustment, and milk prices will be headed higher with the new year approaching.

tinuing the development of total maximum daily loads: http://water.epa.gov/lawsregs /lawsguidance/cwa/tmdl/index.cfm; state water implementation programs: http://www.epa.state.il.us/wat er/nutrient/index.html; Numeric water quality standards for Florida: http://water.epa.gov/lawsregs /rulesregs/florida_index.cfm; and the Chesapeake Bay program: http://www.epa.gov/region3/ chesapeake/. Visiting the websites of these programs will give an even better perspective. USDA’s Natural Resources Conservation Service (NRCS) also is reviewing and updating its nutrient management practice standard (590 code): ftp://ftp-fc.sc.egov.usda.gov/NHQ/practice-standards/standards/590.pdf. Agriculturalists in the Midwest likely have heard of the rules, but they may not be paying attention to Chesapeake Bay programs or Florida numeric water quality standards. After 20 years of voluntary programs, farmers in the

Chesapeake Bay Watershed and Florida will have programs with compliance and enforcement strategies. Standards for water quality must be met, and the “how” is very important. Science is critical. TransChuck Spencer parency of the decisions, the science used, and practical implementation practices all will be very important when farmers consider their options for nutrient management. Those of us in Illinois and the Mississippi River Basin need to pay close attention to how programs in other areas of the U.S. develop and farmers respond. We have an increasing amount of technology at our disposal. Science, practical experience, and successful soil conservation programs implementation will help guide us to an outcome. Illinois farmers and landowners have participated in voluntary, cost-share, and

incentive-based programs that work. Nutrient management can have the same success story. What could we accomplish if agriculture implemented a nutrient management program approach that was similar to the “T by 2000” program for soil conservation? Matching nutrient needs to the soil type, local geography, crops grown, and timing of applications all are very important. Certified crop advisers are available to help producers make the best decisions for their farm. Agriculture’s approach should not have to be simply apply less to comply. As harvest yields increase, so will the need for more crop nutrients. The appropriate approach should be how can we use fewer nutrients per unit of harvest yield. We can all work together to discover the answer to that question. Chuck Spencer is GROWMARK’s director of government affairs. His e-mail address is cspencer@growmark.com.

Farmer risk grows as input costs rise BY DANIEL GRANT FarmWeek

M A R K E T FA C T S

Feeder pig prices reported to USDA*

Weight 10 lbs. 40 lbs. 50 lbs. Receipts

Range Per Head Weighted Ave. Price $30.71-$46.33 $37.94 $52.00-$60.74 $55.56 n/a n/a This Week Last Week 24,377 11,643 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $65.21 $61.74 $48.26 $45.69

Change 3.47 2.57

USDA five-state area slaughter cattle price Steers Heifers

This week $103.82 $103.59

(Thursday’s price) Prv. week Change $99.96 3.86 $100.69 2.90

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 114.42 3.04

This week 117.46

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 115-180 lbs. for 135160 $/cwt., dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 11-25-10 48.9 20.8 23.9 11-18-10 57.6 20.0 30.8 Last year 48.8 16.9 30.4 Season total 570.9 548.9 407.9 Previous season total 491.5 429.9 410.1 USDA projected total 1570 1250 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

High commodity prices look good on the surface for profitability in the ag industry. But many farmers fear they’re experiencing, in the words of baseball great Yogi Berra, “déjà vu all over again” when it comes to their bottom lines. The bull-run in the commodities markets also triggered higher input prices, which could increase the level of risk for farmers. The situation appears to be similar to what happened in 2008 when fertilizer, seed, and fuel prices skyrocketed to unprecedented levels. “We’re back to the same thing we were a couple years ago (when high input costs counteracted high commodity prices and squeezed farm margins),” said Kent Schleich, IFB District 8 director from Fairview. Schleich is the chairman of the IFB Profitability Advisory Team, which met Sunday in St. Louis. “We’re in an era of high volatility,” he continued. “Risk is there.” USDA last week projected farm expenses for this year could total $286.6 billion. If realized, that would be the second-highest level on record and up 2 percent from 2009. And it could cost farmers even more to grow crops next year, based on recent Purdue University estimates. “For rotational corn, our estimates show variable costs in 2011 up around 13 percent com-

pared to 2010,” said Bruce Erickson, director of cropping systems management at Purdue. “Soybean production costs will be up around 6 percent, and for winter wheat, we’re estimating that costs will be 13 percent higher.” Much of the cost increases were attributed to higher fertilizer prices. Corn-on-corn expenses next year were forecast to jump 14 percent. Average per-ton fertilizer prices in Illinois from April to November jumped from $520 to $736 for ammonia, $503 to $661 for diammonium phosphate, and $501 to $526 for potash, according to USDA. Commodity prices have risen, “But when you start looking at input costs, our margins are the same but the risks are exponentially higher,” said Ron Moore, a farmer from Roseville and chairman of the Illinois Soybean Association. “Fertilizer prices have gone up 50 percent in our area since last summer.” Higher production costs also are expected to have an adverse effect on the livestock industry. “This fall, we dropped hog prices about $4 to $5 (per hundredweight) and upped corn $1.50 (per bushel) and soybean meal $50 to $75 (per ton),” said Mike Haag, a hog farmer from Emington and president-elect of the Illinois Pork Producers Association. “All of a sudden, we went from a profitable period to break-even at best. “Just talking to producers, there is a lot of frustration trying to deal with higher risk,” Haag added. “On the plus side, it should moderate expansion.”

FarmWeek Page 15 Monday, December 6, 2010

PROFITABILITY Corn Strategy

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

Soybean structure in flux While it’s understandable that traders around the world are gnashing their teeth over the pace of Chinese demand, the supply of soybeans and other oilseeds is big enough to meet it unless there’s a severe crop problem in South America. And, as we outlined in the last issue, there’s reason to think China is close to getting serious about slowing its economy, a move that should slow food demand to some degree. The Communist Party recently gave its approval for government officials to proceed with a more prudent monetary policy. In other words, officials have been given permission to be more proactive in slowing the rate of growth with stronger measures, including raising interest rates. In the mix of recent news, few mention that Chinese crush margins have fallen dramatically. No longer do they have the $1.50-plus margins

Basis charts

they enjoyed earlier in the season. Crush margins on their futures have fallen to 50 to 60 cents per bushel, with cash margins perhaps less. A couple of plants already have closed because product demand has weakened. At the same time, the government has asked vegoil companies not to raise retail prices. This will cap prices at processing plants, putting more pressure on crush margins. The world is not short of soybeans or other oilseeds, either. At least they aren’t as tight as wheat or coarse grains, unless a problem arises with South American crops. And it’s still too early to start reducing the potential output significantly. Production outside of the U.S. and China may need to fall below expected consumption, with the exportable supply from the U.S., Brazil, and Argentina dropping below 90 million metric tons (3.3 billion bushels) to justify prices going significantly higher. And while production changes have played a part of the fall price rally, it’s been demand that has been a cornerstone of the gains, particularly from China. Given that crush margins have deteriorated, if the Chinese tighten monetary policy, soybean purchases could quickly falter. If Chinese prices break enough, it could lead to cancellation of some purchases already on the books. They have a lot of room to cancel purchases, with 10 million metric ton (370 million bushels) of soybeans purchased but not yet shipped. The plight of prices lies with South American weather and Chinese monetary policy. AgriVisor endorses crop insurance by

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Cents per bu.

2010 crop: The short-term trend turned up with prices confirming a 20-week low has been seen. However, the inability to sustain gains last week made the extent prices might rebound uncertain. Use current strength to price remaining bushels you have to sell. It still looks as though hedge-to-arrive (HTAs) contracts for winter/spring delivery may be the best marketing tool, but check returns against storage costs. 2011 crop: The gross income per acre offered by current new-crop prices remains very attractive. Use rallies to $5.25 on December futures to make catch-up sales. Fundamentals: Outside markets remain the largest influence on day-to-day trade. Recent Chinese economic reports were better than expected, triggering a wave of inflationary buying. Australian wheat quality problems should increase the supply of feed-quality wheat, competing with corn. The trade is getting nervous the ethanol blender credits may not be renewed. Argentine weather provides background support.

Soybean Strategy 2010 crop: The recent action turned the short-term trend higher again. But even then, soybeans will have increasing difficulty moving upward with March futures above $13. Resistance will be especially tough as it nears $13.50. Use rallies into that price range to wrap-up sales. 2011 crop: New-crop futures, unlike old-crop, posted a weekly reversal down in mid-November. That increases the odds that a key high may have been seen. Use rallies above $12 on November 2011 futures to make catch-up sales. Fundamentals: Chinese demand and South American weather remain the key focal points of the trade. While weather is increasing the possibility of a poor crop in Argentina, it’s still too early to assume production will fall much below the 50-million-metric-ton level, if at all. Chinese soybean buying remains good, but leaders have approved a move to a tighter

monetary policy. If they do, it could reign in soybean prices, and slow China’s purchases.

Wheat Strategy 2010 crop: Wheat prices surged higher on the wave of inflation buying but lost momentum when prices approached levels that had stopped rallies over the last three months. Significant resistance starts at $7.75 on the Chicago March contract. Use current strength to wrap up sales if you still have inventories. Because of the big futures carry, HTA contracts for winter/spring delivery still

appear to be the best tool. 2011 crop: Use rallies to $8 on Chicago July 2011 futures for catch-up sales. If basis is wide on cash contracts, use a HTA contract. Fundamentals: The excessive rain in eastern Australia is going to reduce the quantity of good milling quality wheat in the world. At the same time, the lack of good rains in the western Great Plains continues to prompt worry for our new crop. Weekly export sales were good this past week, 1,401,600 metric tons (52 million bushels), but shipments continue at a relatively slow pace.

FarmWeek Page 16 Monday, December 6, 2010

PERSPECTIVES

The price of eating healthy might be a good surprise Did you see the recent news that a scientist went on a diet of Twinkies for 10 weeks and lost 27 pounds? In addition, the news reports indicate that his cholesterol improved dramatically. This isn’t a nutritionhealth column, but since soybeans are listed as an ingredient in a Twinkie, albeit the last ingredient in a very long list, it seems appropriate to talk about a WILLIAM product into which some BAILEY local soybeans might end up. Actually, this column’s thrust is on the relationship of Twinkies to another column in which I noted that commodity prices were rising and this would eventually lead to higher food prices. Despite the higher prices, I continued, U.S. consumers spend only 6 percent of their income on food as opposed to twice that amount in Germany and Japan. So even with higher prices, my point was U.S. consumers still have a good deal compared to those in other countries. A reader commented that it wasn’t fair

to compare how much U.S. consumers spent on food because Americans don’t eat healthy food; they eat mostly food that is cheap and highly processed, and so, unhealthy food is cheaper than healthy food. That reader believed consumers in other countries eat a healthy diet and, as a result, spend more of their income on food. Are cheap foods necessarily unhealthy? To investigate this question, I compared the price of Twinkies with the price of foods I believe are reasonably healthy. The results were a little surprising. A pound of Twinkies costs $2.72 in Macomb. A pound of cabbage costs 65 cents and a pound of potatoes costs 40 cents. A person could buy four pounds of cabbage or nearly 7 pounds of potatoes for what a single pound of Twinkies costs. Oranges and bread presented a similar result. For $2.70, you could buy a pound of Twinkies, 2.5 pounds of oranges, or 2 pounds of bread. How did the price of a pound of beef or chicken compare? Hamburger was cheaper — not by a lot, only 10 percent — but still cheaper, pound for pound, than Twinkies. Chicken was a

real bargain — two pounds of chicken for one pound of Twinkies. Without speculating about whether Twinkies are healthy — they do, after all, contain soybeans — there are some foods available to the American consumer that are very healthy and much less expensive than Twinkies. So, with every indicator pointing toward higher food prices, I will keep an eye on the price of Twinkies. Even if American consumers prefer to eat only healthy foods, they still have a good deal when it comes to the amount of their income they need to spend on food. William Bailey is the director of Western Illinois University’s School of Agriculture at Macomb. His e-mail address is WC-Bailey@wiu.edu.

Illustration by Sharon Newton

Students receiving better school food one bite at a time America’s fruit growers likely would understand if young school-age kids have not tried fresh star fruit, pomegranate, mango — even kiwi. But surely most pint-size diners have eaten a peach? Sadly, for many kids, the answer is no. Part of the CYNDIE reason is that SIREKIS all too often, the culinary landscape at schools, where children typically consume between 30 percent and 50 percent of their daily calories, according to experts in the field, is bleak and has been for years. High-fat, packaged meals

heated in the microwave are the norm. Fresh fruits and veggies rarely show up on cafeteria trays and “from scratch” meals have gone by the wayside. But the dismal state of inschool dining is on the cusp of change, thanks to an initiative that aims to connect chefs with schools in their communities. “Chefs Move to Schools” is part of the administration’s broader “Let’s Move!” program, which has a goal of vanquishing America’s childhood obesity problem in one generation. A whopping 31 million kids eat lunch at school daily and 11 million also eat breakfast at school. That’s a lot of tummies to fill. Helping school staffers

learn how to prepare nutritious food that also tastes good is the focus of many “Chefs Move to Schools” efforts. Chefs appear eager to share their expertise with local schools — more than 1,600 in 24 states across the country signed up in a few months. USDA pairs chefs with local school representatives that have expressed interest in the program. How to best meet the schools’ dietary guidelines, while teaching young people about nutrition and making balanced, healthy meal choices is determined by chefs and school officials in each community. Scratch-cooking basics, knife techniques, making food more visually appealing, and safety tips are among the sub-

jects taught by volunteer chefs to school food service workers. Chefs also may help schools in other ways, such as connecting food service staff with local growers or hosting community dinners. Despite the early enthusiastic response to the program, instituting a nationwide school meal makeover could be akin to what seasoned farmers might describe as “picking a tough row to hoe.” The time crunch faced by school food service workers is a significant challenge. Just 20 minutes to prep and serve several hundred hungry diners is common. Another hurdle is the lack of basic kitchen equipment, including ovens, produce sinks, and cold storage in schools. Despite these obstacles,

“Chefs Move to Schools” moved forward. School nutritionists at large school systems in locales as diverse as Chicago, Baltimore, and MiamiDade Public Schools in Florida embraced the initiative with high hopes of teaching young people about nutrition and how to make balanced, healthy meal choices. Many schools across Illinois have signed up for the program. Learn more about “Chefs Move to Schools” at {http://healthymeals.nal.usda.go v/nal_display/index.php?info_c enter=14&tax_level=1&tax_subj ect=225.} Cyndie Sirekis is director of news services for the American Farm Bureau Federation. Her e-mail address is cyndies@fb.org.

LETTER TO THE EDITOR Warm fall no sign that Earth is warming Editor: Yes, it was a dry, warm fall. But before anyone jumps to the conclusion that it must be global warming, consider these tidbits of information: My mother often remarked that when she was a young lady in White County, along about 1938, it was so warm that they did not take the screen door off for the winter until Christmas. Remember they did not have air conditioning in those days, so they had a reason for leaving it on. Another White County resident, a farmer in

his late 60s, told me recently that he recalls a year when wheat in the bottoms did not come up until the next spring. I can recall a fall in the 1980s so dry that the wheat did not come up until early December. My dad remembers 1936 well with weeks of 100-degree plus days in July and August and no rain. It did not rain that year from the end of May until early September! People slept outside because there were no electric fans, let alone air conditioners. Yet, the winter of 1947 or 1948 was so cold that folks

drove their cars out onto the ice where they were skating. Just recently the upper U.S. and other parts of the world have had two very cold winters. And, hilariously, last February the Copenhagen conference on global warming was blessed with miserably cold, wet weather. If you are in the mood for an enjoyable counterperspective on global warming, Google Lord Christopher Monckton and look for his Oct. 14, 2009, Minnesota speech. You can also find great information at {Discerning-

Today.org}, {Freedom21} and {Sovereignty International}, which link to Mon-

ckton’s speech. DANIEL HARMS, Bone Gap

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