FarmWeek July 13 2009

T H E S TA T E B U D G E T ’ S future remained unclear Friday as lawmakers prepare to return to Springfield Tuesday. .......................3

LANDOWNERS SHOULD seek advice from an experienced attorney before signing a wind turbine contract, an attorney says. ....3

A N E W S T U DY i n d i c a t e s higher nationwide truck weights would save far mers money and improve motorist safety. ................9

Monday, July 13, 2009

Two sections Volume 37, No. 28

RC proposes keeping animal ID voluntary

BY MARTIN ROSS FarmWeek

Amid nationwide controversy over the potential producer costs of mandatory animal identification, the Illinois Farm Bureau Resolutions Committee (RC) last week recommended continued policy support for voluntary premises and animal ID systems.

Between now and November, when the RC reconvenes to draft 2010 policy proposals for IFB delegate approval, county Farm Bureaus will be asked to chime in on the issue.

The RC is inviting county input on four key “discussion topics” in particular: premises registration, climate change and cap and trade proposals, concealed carry laws, and animal activism.

In an RC briefing last week, Robert Fourdraine of the Wisconsin Livestock Identification Consortium (WLIC), argued “40 percent, 60 percent (premises registration) participation isn’t going to work” in managing animal disease concerns.

But Nancy Robinson, Livestock Marketing Association vice president for governmental and industry affairs, told

RC members a mandatory system would be “too expensive and too cumbersome” and would interfere with the “speed of commerce” necessary for livestock marketers.

Robinson cited producer concerns about potential liability involving ID-related farm trace-back in the event of a disease/food safety incident.

Producer worries about how federal agencies could access and/or use confidential animal information “seems to be huge,” she reported.

Cost as well as the potential multi-species scope of ID requirements ultimately played into the RC’s recommendations, RC Ag Production/National Issues Subcommittee Chairman Kent Mellendorf told FarmWeek.

“There are states that have mandatory systems now, and there is an expense involved,” Mellendorf said. “We just felt that if we go to a mandatory ID system, we may cut our own throats. We’re going to end up footing the bill.”

Wisconsin lawmakers passed a mandatory ID program in 2003 largely in response to concerns about foot-and-mouth disease.

Fourdraine reported state

animal health officials “didn’t really know how to get in touch” with livestock operators, and WLIC, a collection of 55 member groups, had been formed in 2001 to voluntarily “gather and maintain critical data” to more quickly address a disease emergency.

Wisconsin’s program is not

enforced at “the point of commerce” — livestock markets are not required to turn away unregistered animals.

The Wisconsin Department of Agriculture keeps farm data strictly confidential and, according to Fourdraine, protected from use to promote or debate “unintentional issues”

beyond animal health or animal-human disease concerns such as H1N1.

Information can be used only by the state veterinarian.

Further, animal owners are not charged any program fees.

Fourdraine noted producer See ID, page 2

GRANDFATHERLY CHAT

Evan Leeper, 15, right, listens as his grandfather, Richard Gulick, imparts some grandfatherly advice on wheat harvest last week as Tom Leeper, Evan’s father and Gulick’s son-in-law, moves through the field in a newly purchased combine. The older Leeper said he plans to double-crop the 38-acre field.

Leeper and Gulick also farm about 1,200 acres of corn and 900 acres of soybeans. Leeper said his corn and soybeans were “not bad,” considering they had received about 5 inches of rain during each of the months of April, May, and June. See more on this year’s Illinois wheat harvest on page 8.

(Photo by Ken Kashian)

July 1 start Periodicals: Time Valued

Treasurer’s changes to link-deposit program helpful to farmers

BY KAY SHIPMAN FarmWeek

The nation’s largest farm link-deposit program, Cultivate Illinois, again has a line-of-credit option, after Illinois State Treasurer Alexi Giannoulias implemented new safeguards effective July 1.

Giannoulias is expected to announce the changes this week during stops at county Farm Bureau offices in Rock Island and Adams counties and the Illinois Farm Bureau office in Bloomington.

“Working with farmers and lenders, we found a way to ensure that farmers now have credit, lenders are liquid, and taxpayers are making more on their investment,”

Giannoulias said.

Cultivate Illinois, started in 1983, has The state’s Cultivate Illinois program $853 million in state deposits that serve again allows financial institutions to offer about 11,200 farmer borrowers. The linelines of credit so farmers can access cash of-credit option allowed farmers to draw for seed, fertilizer, and other on funds only when needed FarmWeekNow.com annual operating expenses. instead of receiving all the A d d i t i o n a l d e t a i l s o n money within 10 days.

“I’m appreciative of the changes to the Cultivate Illifact the treasurer restored ”These loans are impornois program are at the line-of-credit option,” tant to farmers — especialFarmWeekNow.com. said IFB Director Dale ly to help young and beginHadden, a Jacksonville ning farmers,” said IFB farmer who also serves on the treasurer’s President Philip Nelson. ag advisory group. “This provides another Last fiscal year, Giannoulias discontintool for farmers to use to obtain the need- ued the line-of-credit option. One reason ed capital resources to put in a crop for the 2010 growing season.”

See Treasurer, page 2

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, July 13, 2009

Quick Takes ‘EXPERT’ LIST SOUGHT — The Illinois Corn Growers Association (ICGA) has filed a federal Freedom of Information Act request to obtain names of experts the U.S. Environmental Protection Agency (EPA) has consulted on “indirect land use.”

Growers and ethanol producers are concerned about EPA evaluating biofuels under the renewable fuels standard (RFS) based on their theoretical impact on cropping patterns and sensitive lands around the globe.

ICGA submitted names of experts it felt were qualified to deal with the issue, “and all that we know for certain is that none of those names were accepted,” ICGA President Rob Elliot reported.

“We also e-mailed EPA staff with a friendly, informal request for the names of the experts studying this issue and were told that the names weren’t being released,” he said.

“This is not the way to gain confidence with the vast numbers of citizens that question the accuracy of the indirect land use calculations being used, nor is this the way to do business if the president or the EPA wants to gain public support for the final (RFS) rules.”

The U.S. House seeks a five-year study to determine whether global land use should guide federal regulations.

JOHANNS WANTS THE NUMBERS — Sen. Mike Johanns (R-Neb.), former U.S. ag secretary, is calling for a Senate Ag Committee hearing to explore the cost of cap-and-trade legislation for U.S. farmers.

Johanns’ request came after Ag Secretary Tom Vilsack testified before the Senate Environment and Public Works Committee on climate change and provided no estimate of the bill’s impact on input costs for producers.

“Secretary Vilsack should provide the Senate and America’s farmers with an answer to one simple question: How much more does the Department of Agriculture estimate America’s agricultural producers will pay under the House bill?” Johanns said.

HAUSER INTERIM ACES DEAN DESIGNATE — Robert Hauser, head of the University of Illinois’ agricultural and consumer economics department, has been named interim dean designate of the College of Agricultural, Consumer, and Environmental Sciences (ACES). He will assume the position of interim dean Aug. 17 if the U of I Board of Trustees approves his appointment.

Hauser has held several leadership positions on Urbana-Champaign camRobert Hauser pus, including nearly 12 years as either interim head or head of the ag economics department. Recently he served as interim director of international affairs/ACES global connect. He has received many research and Extension awards.

(ISSN0197-6680) Vol. 37 No. 28

July 13, 2009

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

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GLOBAL ISSUES

International farm event July 19-24 in Normal “I think agriculture has a lot to offer in terms of providing solutions for the world’s food, energy, and environmental problems,” said King of Cambridge, England, who last year visited the ISU campus in Normal to promote the upcoming congress.

The week-long event not only will feature presentations from ag experts from around the world, but it also will include a number of tours of agriculture in Illinois and surrounding areas.

Tour stops include Illinois farms, the John Deere production facility in the Quad Cities, the USDA ag research lab in Peoria, the Chicago Board of Trade, the Chicago High School for Ag Sciences, the Monsanto research facility in Monmouth, and an ethanol facility in Central Illinois.

Most of the tours are full, but those interested in attending the congress may

BY DANIEL GRANT FarmWeek

Illinois agriculture will be on display to the world July 19-24 when Illinois State University (ISU) in Normal hosts the 2009 International Farm Management Congress.

The biannual event, which will be held for the 17th time overall, is making only its second appearance in the U.S. and first since 1986 when it was held in Minnesota.

The congress is touted as a gathering of ag professionals from around the world to exchange ideas, experiences, and knowledge through presentations and demonstrations.

“It’s very much an international event,” said Carroll Merry, director of this year’s ‘I think agriculture has a lot to offer in congress, who expects at least ter ms of providing solutions for the 200 representatives from 26 world’s food, energy, and environmental different countries to be in attendance. problems.’

The theme of this year’s event Tony King International Farm Management Association is “Food, Fiber, and Energy for the Future.”

“When we selected the theme four years ago, we had no idea how ethanol would grow and expand and how just a year ago we’d have $4 gas,” Merry said.

Tony King, secreacquire a day pass for $75 per person on tary/treasurer of the International Farm ManJuly 20 and 22 and $100 per person on July agement Association (IFMA), described recent 24. years as “extraordinary times” for agriculture The passes will be available on each of those due to the world’s growing population and days at registration desks outside the entrance increased demand for food. to the Brown Ballroom at the Bone Student Participants of the conference will learn Center on the ISU campus. about research and discuss ways to improve The entire schedule of events and list of production and meet the growing demand for speakers are available at {www.ifma17.org}. ag products.

Treasurer Continued from page 1 for the change was an audit that found some participating lenders had not distributed dollars to farmer-borrowers but instead held the funds for the term of the loan and then returned the funds to the treasurer’s office.

The treasurer and his staff worked with IFB, farmers, lenders, and others to develop safeguards for the program. Mike Wakeland, director of the Cultivate Illinois program, credited IFB for working with the treasurer and his staff to find a solution to restore the line-of-credit feature.

“Illinois Farm Bureau and other folks said, ‘Isn’t there some way to reinstate it?’” Wakeland said. “Partly because of the urging of IFB, we found a way to restore it.”

Now lenders must document the use and distribution of funds and pay a higher rate of interest on funds that aren’t lent to farmers. The treasurer’s staff also implemented new reporting requirements and program monitoring.

Annual loans of up to $100,000 per borrower or $200,000 per farm operation are available.

ID Continued from page 1 sentiment that the roughly $500,000 annual cost of health-related ID requirements “should be shared by everybody,” including taxpayers/consumers.

While Wisconsin premises registration is high — four

times as many swine premises reportedly are registered as are identified by statewide ag statistics reports — he questioned whether 100 percent participation is possible “unless we have enforcement” throughout the system.

Robinson said use of “low-

frequency” electronic ID technology would not be effective in most market situations.

“We need to maintain the speed of livestock flow,” Robinson advised. “To mandate (the National Animal Identification System) would be disastrous for our members.”

FarmWeek Page 3 Monday, July 13, 2009

GOVERNMENT

State budget future unclear; legislature returns Tuesday on the governor’s desk, according to Semlow.

The governor’s latest action leaves many Gov. Pat Quinn proposed cutting $1 bilpeople wondering what’s next and whether lion from the state budget last week as he agencies will continue to operate. vetoed his second budget bill in as many “As of Friday, we have heard of no weeks. plans to shut the doors of state agencies,” Semlow said. “The next major challenge The governor vetoed HB2145, which facing the state is: How will employees be contained funding for state agencies, the paid?”

General Assembly, and his fellow constiState employees’ checks were suptutional officers. Quinn suggested the posed to be processed Sunday or General Assembly and all the contoday (July 13). stitutional officers cut their budMeanwhile, the General Assemgets by at least 10 percent, bly is scheduled to return Tuesday. including requiring up to 12 Members could vote to overdays without pay for state ride the governor’s two budget employees. bill vetoes; however, Semlow The governor’s proposal speculated veto proponents will included $6 million in cuts for have a hard time gaining the the Illinois Department of required votes from threeAgriculture. fifths of representatives and “Currently, the budget situ‘ U n t i l t h e r e i s a senators. ation is fluid and changes “If the bills are not overridhourly. Until there is a budget budget agreement agreement between the gover- between the gover- den, the vetoes stand, and there is no state budget,” Semnor and the General Assembly, the final outcome remains nor and the Gener- low explained.

“Unfortunately, for now unknown,” said Kevin Sema l A s s e m b l y, t h e there is not a state budget. We low, Illinois Farm Bureau f i n a l o u t c o m e r e - don’t expect to see one in the director of state legislation. mains unknown.’ near future, and the way The governor also things are shaping up, it could approved — without fanfare be some time before there is a — Kevin Semlow — HB2194 that will pay off IFB director of state legislation resolution,” he continued. all but 10 percent of the outLast week, the governor standing Medicaid bills to doccharacterized his action as making a tough tors, hospitals, nursing homes, and other serchoice. vice producers so the state can qualify for fed“I presented my budget to the General eral stimulus funding for Medicaid.

Assembly on March 18 with a clear message: Three more appropriation bills that fund When it comes to making cuts, we have to elementary and secondary education, higher make tough choices, not bad choices,” he said. education, and dedicated-fund programs remained

BY KAY SHIPMAN FarmWeek

Illinois clicks with quality information 24-7 A sixth grader needing homework help, a parent seeking a support group for a troubled teen, and a gardener wanting pest advice each could turn to Illinois Clicks!

Illinois Clicks! {www.illinoisclicks.org} is a website created and maintained by teams of librarians to provide quality information — with an Illinois focus — across the state, said Frances Roehm, the website manager and one of its creators.

She is the Internet librarian with the Skokie Public Library.

During a recent state Broadband Deployment Council meeting, Roehm offered to work with other entities that propose broadband projects to compete for some of the $7.2 billion in federal broadband stimulus funding.

Roehm estimated it would cost about $200,000 a year to maintain the website that currently is being maintained by volunteer librarians.

“It’s an Illinois point of

view on the Internet. We’re trying to pull all of the information in one place,” Roehm told FarmWeek.

The value of Illinois Clicks! is Internet users don’t need to worry about the quality of the information because it has been scrutinized by librarians, she noted.

“We’re not out to sell something,” she said. “Our thing is giving quality information to people.

“We started this (Illinois Clicks!) because we realized there are millions of people who don’t know how to find good information (online),” Roehm continued.

Information categories include: arts and entertainment, books and reading, business and investing, consumer information, child care, genealogy and local history, health, home and garden, homework help, immigration, jobs and careers, law and government, society and culture, and travel and tourism.

People seeking health information may use Illinois

Clicks! or Health-E Illinois, a project developed and maintained by medical librarians with the Loyola University School of Medicine.

Health-E Illinois allows Internet users to find Illinoisrelevant health information.

The project also is connected to medlineplus, a site maintained by the National Library of Medicine {http://medlineplus.gov/}.

For example, someone searching for adult day care services in Fayette County, Illinois, would start at {medlineplus.gov} and click on the “go local” icon on the left side. Then click on the Illinois map, and click on “services by location.” Then, click on the Fayette County map and scroll down to the appropriate topic.

Roehm offered to partner with groups seeking to expand broadband services, to provide quality information, and to offer training in broadband use.

“Librarians are the original search engines,” she quipped.

— Kay Shipman

Wind turbine construction in Pike County. (File photo)

State wind conference this week

Landowners advised to seek input on wind energy project contracts Despite pressure from competing wind power developers to make a quick decision, landowners should seek advice from an experienced attorney and carefully consider all the potential impacts of a wind turbine before signing any contract, according to an Illinois Farm Bureau attorney.

“We know of situations, firsthand, in which landowners were encouraged to sign a contract in a short period,” said Ryan Gammelgard.

Information for landowners will be provided this week at the Illinois Wind Working Group conference Wednesday and Thursday at the Interstate Center, Bloomington.

The first step a landowner should take after being approached by a wind developer is to work with a lawyer who is knowledgeable about wind development contracts, said Gammelgard.

“This is a specialized area of law and contracts, which can be 30 to 40 pages long and are increasingly complex, and contracts have evolved over the years,” Gammelgard explained.

The attorney also advised landowners not to sign any contract until they are comfortable and have sought input on potential impacts to the farm operation from tax advisers, farm managers, and family members.

“This turbine and contract will impact a lot of areas of the farm operation and you need to understand that before you sign a contract,” he added.

For example, an older farmer should consider how a contract of 30 to 60 years duration may influence his children and future decisions about income from the development.

County Farm Bureaus are assisting members by hosting informational meetings with members of IFB general counsel and governmental affairs and commodities division.

Landowners also can help themselves by creating an informal group, according to Gammelgard.

“Landowners may have more leverage if they have a landowner group and work with one attorney to represent them. That’s not uncommon in Illinois,” he added.

For more information about this week’s wind power conference, go online to {www.renewableenergy.ilstu.edu/wind/conferences} or call 309438-7919. IFB is a conference sponsor. — Kay Shipman

FarmWeek Page 4 Monday, July 13, 2009

GOVERNMENT CFTC plans series of hearings

Economist sees more regulations on the horizon

BY DANIEL GRANT FarmWeek

Scott Irwin, ag economist at the University of Illinois, isn’t sold on the idea that speculators are to blame for wild swings the past year and a half in the commodity markets.

But his opinion probably won’t stop federal regulators from imposing stricter limits on trading and positions held in commodity futures markets, according to Irwin.

The Commodity Futures Trading Commission (CFTC) announced last week it will hold a series of hearings the next two months to determine how

the agency should use all of its existing authorities to ensure fair, open, and efficient functioning of futures markets.

The first hearing will focus on whether federal speculative limits should be set by CFTC on all commodities of finite supply such as crude oil, heating oil, natural gas, and gasoline.

Crude oil prices in less than a year dropped from a high of $147 per barrel to $37 per barrel.

However, the wild swings in the price of crude oil, grain, and other commodities occurred during a period of

Senators seek to beef up CFTC

RC recommends measures to aid wheat convergence As regulators consider the impact of energy/commodity speculation (see accompanying story), U.S. Senate appropriators seek improved market transparency, and Illinois Farm Bureau is pursuing more effective wheat price discovery.

IFB’s Resolutions Committee (RC) is asking county Farm Bureaus to consider 2010 policy proposals aimed in part at addressing wheat price convergence issues some have linked to market speculation. The RC proposes adding river terminals as new market delivery points.

Currently, wheat delivery is based on the Ohio River, outside current major wheat marketing areas. Soft red winter wheat futures contracts have not converged with cash prices since 2005, and the University of Illinois has recommended moving from Chicago and Toledo, Ohio, delivery to the Mississippi River system.

“Hopefully, down the road, this would help with the basis problem,” RC Ag Production/National Issues Subcommittee Chairman and Effingham County wheat grower Kent Mellendorf told FarmWeek.

Meanwhile, ongoing concerns about the financial sector and questions about exchange activity and price basis spreads flavored the Senate Appropriations Committee’s proposed fiscal 2010 financial services spending package.

The measure provides $177 million for the Commodity Futures Trading Commission (CFTC), a 21 percent increase over fiscal 2009.

Increased funding would provide 53 new employees and improved information technology to help implement new mandates under the 2008 farm bill, provide “more aggressive market oversight” of energy markets, and improve collection, timeliness, and transparency of trading data.

Sen. Dick Durbin, a Springfield Democrat who chairs the appropriations financial services subcommittee, acknowledged a “significantly transformed globalized, electronic, and round-the-clock marketplace” complicated by transactions the CFTC currently cannot regulate, including over-the-counter derivatives such as credit default swaps.

House-approved climate legislation would ban so-called “naked” credit default swaps — insurance-like contracts aimed at preventing bond defaults — and require over-the-counter derivatives to move through central clearinghouses.

The measure directs the CFTC to set position limits on energy traders and would grant the CFTC oversight on energy swaps.

At the same time, amid concerns about wheat speculation, the Senate Permanent Subcommittee on Investigations is recommending the CFTC enforce a standard limit of 6,500 positions for speculative index traders in the wheat market and phase out existing position waivers. — Martin Ross

drastic changes in supply and demand, a major boom in ethanol production, variable weather conditions that affected ag production, and most recently a worldwide economic recession.

“These are the factors driving the markets,” Irwin said.

“I’ve seen no evidence that speculators’ impact (on commodity prices) is anything more than small to marginal.”

The U.S. Senate Permanent Subcommittee on Investigations last month came to a different conclusion, reporting it found “excessive speculation” in the wheat markets.

The subcommittee recom-

mended CFTC phase out existing waivers which permit commodity index traders to exceed the standard limit of 6,500 wheat contracts per trader and impose a position limit of 5,000 wheat contracts per index trader.

Irwin believes the wheat contract is “broken” but noted “the contract was not working very well before we entered the turbulent period.”

A key to improving the wheat contract is overhauling the delivery system, according to the economist.

He noted the corn and soybean contracts in the past year have converged and

currently are not an issue.

Still, he believes the government will step in and impose stiffer regulations in the futures markets.

“My belief is the political decision already has been made to impose changes,” he said. “It appears that train is well down the tracks.”

A statement issued last week by Gary Gensler, CFTC chairman, seemed to foreshadow some type of enhancement to market oversight by the agency.

“My firm belief is that we must aggressively use all existing authorities to ensure market integrity,” Gensler said.

House nearing vote on health care package

BY MARTIN ROSS FarmWeek

After a recent series of community “listening sessions,” a telephone “town hall,” and even an Internet Facebook discussion, U.S. Rep. Phil Hare has come to a central conclusion about health care: People need options.

But while he sees the need for Congress to provide new options for an estimated 44 million uninsured Americans, the Rock Island Democrat also stressed the need to shore up rural hospitals and provide incentives for rural health providers and adamantly opposed taxing consumer health benefits to pay the cost Rep. Phil Hare of a revamped system.

Hare anticipates a House vote on health care legislation by the end of the month. Key to the House Education and Labor/Ways and Means/Energy and Commerce Committee plan is a new “public option” for uninsured Americans, but he stressed that “if you have insurance, you keep your insurance.”

Hare, an Education and Labor Committee and House Rural Health Care Coalition member, said those who can’t afford or have lost employer-provided health coverage or who pay “extremely high” premiums could investigate affordable coverage through a new public “exchange.”

Under the plan, “there’s no free health care”: Hare said consumers eligible for the public option would be required to pay a portion of their “policy” cost.

At the same time, proposed House measures would enable farmers and other groups of small businesses or selfemployed individuals to negotiate for lower-premium coverage based on what Hare termed “strength in numbers.”

The concept reflects Springfield Democrat Sen. Dick Durbin’s proposed Small Business Health Options Program (SHOP) plan based on menu-driven coverage options currently open to federal employees.

Farm Bureau supports creation of voluntary regional insurance purchasing cooperatives.

‘ A t t h e e n d o f t h e d a y, I think it’s all about giving people options .’

— U.S. Rep. Phil Hare Rock Island Democrat

“Let’s say a farmer and his family take a look at what plans are available, including the public option,” Hare told FarmWeek. “They’re not forced into doing anything — they can pick whatever plan they want. At the end of the day, it’s good old-fashioned competition.

“There will be some pushback from insurance companies, but at the end of the day, I think it’s all about giving people options and access to health care. If we do nothing, by 2020, people are going to be paying $13,000 a year more than they are now for health care. We can’t allow that — that will literally bankrupt families.”

In addition, Hare and Rep. Tim Johnson, an Urbana Republican, unveiled measures designed to bolster the nation’s 1,300 smaller, largely rural “critical access” hospitals (CAHs).

Their bill specifically would close Medicare “loopholes” that limit reimbursements for certified registered nurse anesthetists (CRNAs) — primary CAH anesthesia providers who also deliver obstetric, surgical, and trauma stabilization services in underserved areas.

Ensuring provider availability is key to helping “staff up the hospitals,” said Hare, who further favors student loan forgiveness for rural physicians and nurses. The House plan would increase scholarships and loans to students who agree to work in underserved areas.

To track House action and voice opinions on health care, visit Hare’s Facebook page at {www.facebook.com/philhare}.

FarmWeek Page 5 Monday, July 13, 2009

GOVERNMENT

Do climate proposals face challenge in Senate?

BY MARTIN ROSS FarmWeek

A Farm Bureau policy analyst questions whether Senate leaders can muster enough votes to move Houseapproved greenhouse “capand-trade” legislation he believes to be built on “unrealistic assumptions.”

Senate Majority Leader Harry Reid (D-Nev.) hopes to hold a floor vote on Senate climate legislation by mid-fall. However, given reservations among several Senate Democrats, “that remains to be seen,” American Farm Bureau Federation (AFBF) regulatory specialist Rick Krause told FarmWeek.

Despite inclusion of ag protections and provisions

that enable producers to benefit from emissions “offset” markets, AFBF opposes the House measure, “and I think we will oppose it as it moves forward,” Krause said.

Ag Secretary Tom Vilsack and other key Cabinet officials testified on climate before the Senate Environment and Public Works Committee last week. Environment Committee Chairman Barbara Boxer (D-Calif.) hopes to move a bill out of committee in August.

“I think they’ll start with the House template and go from there,” Krause said. “I suspect that with Barbara Boxer putting something together, it would probably be something worse than the House bill. I

don’t think they’ll start from scratch.

“Based on (efforts) last year, the Environment and Public Works Committee probably will pass something out of committee. But getting it past the full Senate is a different matter. We’re still hopeful that there are enough Democrats out there that don’t like this thing that it won’t pass.”

Krause sees resistance to House proposals from several farm state Democrats including West Virginia’s Robert Byrd and Jay Rockefeller, whose state coal industry could suffer significantly from emissions caps.

Some senators are skeptical of EPA projections that under cap-

Lawmakers intensify U.S.-Cuban travel, trade reform efforts As President Obama last week worked toward a new relationship with Russia, former Ag Secretary John Block urged Congress to focus on reforms “90 miles from our shore.”

Sarah Stephens, director of the Center for Democracy in the Americas (CDA), maintained U.S. agriculture “helped transform the debate on U.S.-Cuban policy” by convincing Congress to end a decades-old ban on food sales to Cuba.

Last year, Cuba purchased more than $700 million in U.S. ag exports, and Stephens argued the change “has reconnected the United States and our humanitarian values and the people of Cuba.”

CDA has sought an end to the U.S.’ Cuban travel ban since 2001 — Obama recently ended travel restrictions for Cuban-Americans, and Congress is considering proposals to completely open travel.

The U.S. International Trade Commission estimates free travel would generate 500,000 to 1 million additional U.S. visits annually. According to Stephens, that would boost U.S. ag sales and “bring more hard currency into the country.”

Block, a Washington-based policy adviser who recently traveled to Cuba, said it is “truly ridiculous that we don’t have an open relationship (with Cuba).”

Though he said he has “no love” for the

island’s communist government, Block questioned efforts to restore relations with China, Vietnam, and Russia, but not with “little old Cuba.”

In addition to the Freedom to Travel to Cuba Act, congressional appropriations proposals would enable Cuban buyers to pay cash on delivery for ag goods rather than prior to shipment, as currently is required.

Sen. Dick Durbin, a Springfield Democrat, supports a proposal to allow U.S. banks to receive payment directly from Cuban banks, improving Cuban purchasing capability.

Mutual travel and trade are “key to transforming that country, eventually, into a friendly democracy,” Durbin said. More immediately, Block reported travel restrictions have prevented Cuban officials from inspecting U.S. processing plants as a prelude to ag purchases.

“We’ve just tried to make it as hard as we could for them to do business with the United States,” he told FarmWeek.

“I’m delighted Congress is moving on this. I applaud President Obama that he has at least started to try to open things up a little bit. But I will say it’s not nearly enough. We need full relations, but I guess it’s going to be one step at a time.” — Martin Ross

$8.5 million OK’d for Illinois agricultural projects The U.S. Senate Appropriations Committee has OK’d $8.478 million for Illinois projects focusing on ag productivity, food and public safety, conservation, and urban nutrition.

The full Senate now must consider the committee’s fiscal year 2010 spending bill for agriculture, rural development, and the U.S. Food, and Drug Administration (FDA), which includes funding for the following projects and programs: • The Biotechnology Research Development Corp. (BRDC): $3.5 million to help develop livestock productivity, crop yield, and veterinary technologies. The Peoria-based BRDC is a consortium that enables private companies to enter into research and development agreements with federal labs

in ag, biotech, and health areas.

• University of Illinois Center for One Medicine: $500,000 in funding for research, education, and outreach efforts aimed at improving national preparedness to respond to natural and intentional public exposure to biological, chemical, and physical threats.

• Illinois Department of Natural Resources Illinois Conservation Initiative: $576,000 for statewide conservation efforts including wildlife management, wetlands, and habitat restoration, and invasive species control.

• National Center for Food Safety and Technology (NCFST): $2 million to continue FDA food safety and security research, including advanced detection technologies and pre-

ventive control research. NCFST is housed at the Illinois Institute of Technology.

• U of I soybean research: $400,000 for research into using genetic science to improve drought resistance, disease tolerance, and resistance to soybean cyst nematode and rust.

• Urban horticulture and marketing: $175,000 for the Chicago Botanic Garden’s Windy City Harvest program, which teaches individuals with few job opportunities skills and provides access to new employment opportunities.

• U of I World Food and Health Initiative: $250,000 for a World Food and Health Center which would support research and education focused on nutrition, food, and health.

and-trade, new nuclear power plants would proliferate and coalbased carbon sequestration, an objective of the proposed Mattoon FutureGen project, would come online by 2015, enabling continued coal power generation.

Krause questioned EPA’s “low-balled” estimate that the bill would cost U.S. households an average of 50 cents per day. That may resonate with urban lawmakers whose low-income constituents could be hit hard by energy and related costs.

Early in the debate, Chicago Democrat Rep. Bobby Rush voiced concerns about the financial impact of climate regulation on his constituents.

House supporters attempted to address concerns from the “inner city” (Rush obtained a proposed $1 billion for energyrelated jobs and job training), but Krause questioned whether “they did enough.”

“When push comes to shove, when it comes down to it, are you going to raise costs in these times?” he challenged.

U of I bringing broad focus to environment changes

BY KAY SHIPMAN FarmWeek

The study of climate change has expanded beyond agriculture, business, and legal perspectives at the University of Illinois’ Environmental Change Institute (ECI).

“The whole campus is now involved,” said Wes Jarrell, U of I ag professor and ECI interim director. Jarrell recently discussed the new institute’s goals and climate change issues at the Agricultural Legislative Roundtable.

The ECI was started by the colleges of Agricultural, Consumer, and Environmental Sciences (ACES); Business; and Law late last year. The Baum Family Trust is contributing $300,000 a year for three years to fund the institute. Additional funding is being contributed by each of the three colleges.

ECI areas of study are: food system and food security, energy and natural resources, economics and policy, biodiversity and ecosystem services, and human dimensions of environmental change, according to Jarrell.

“I think we need a concentrated effort in the Midwest to demonstrate the risks (of climate change) to agriculture and what opportunities exist,” Jarrell said. “Illinois is in a good position to lead other states.”

For more information, go online to {eci.illinois.edu}.

FarmWeek Page 6 Monday, July 13, 2009

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Rainfall totals were 0.2 of an inch last Saturday, July 4, another 0.5 inch of rain of rain on Wednesday, and it was raining Friday morning. We have been getting just enough rain this spring and summer, even though two farmers just north of our farm started their irrigators last week on some sandy ground. What we need is some more warm weather. The Rockford Weather Bureau recorded the coldest high temp, 61 degrees, for any July 8 since it has been keeping records for more than 100 years. Even though it has been cool. The crops still look good, the wheat is slowly getting closer to harvest. Maybe I can report on that harvest next week.

Pete Tekampe, Grayslake, Lake County: A cool, dry week in Lake County. After this spring, I didn’t think we would be in need of a shower, but we are very dry in Lake County with no measurable rain in two weeks. Most of the early corn is looking good, with some yellow wet spots still showing up, detracting from the dark green color that most enjoys. Early beans look good, while later beans are growing very slowly. Not much good hay has been baled because of overcast skies. Wheat is turning, but still needs a week or so yet. Hopefully, we’ll get a nice, light shower over the weekend.

Leroy Getz, Savanna, Carroll County: Rain for July, 0.6 of an inch. It has been cool and cloudy.

Corn and soybeans are looking good. As tassels appear in the corn, we begin to see the uneven growth that has started once again. I have been questioned about reporting a good, tall corn crop, but I believe in looking at the donut and not the hole. A condition called leaf tearing is showing up in some hybrids.

The rapid growth of the corn tears the leaves along the edges as they leave the whorl.

Soybean spraying is nearly completed and now the Japanese beetles are moving in.

Ron Frieders, Waterman, DeKalb County: If you are passing through DeKalb County, you will soon see another crop in the fields around Waterman — 133 wind turbines, Construction on the turbines, 398 feet tall, is scheduled to start soon. Corn is growing. Average height is waist to shoulder high. The tallest looks like it will start shooting tassels soon.

Soybeans are progressing also. Most fields are cleaned up after a post-spray application. That was one bright spot this spring. A string of calm to low mph wind days, right when corn and beans needed to be sprayed, gave everyone an opportunity to get a lot done in a hurry. Wheat continues to turn and should be ready for harvest soon.

Larry Hummel, Dixon, Lee County: It has been great weather for the grass seed that has been sown in the yard — 0.5 of an inch of rain every other day should get it up and growing in no time. On the other hand, it has made it impossible to harvest wheat. Hopefully, we can catch a break and get a good week with no rain and low humidity. Actually, a little more heat would be nice to get the late-planted corn moving along a little quicker to maturity.

Japanese beetles are starting to show up, but that is about all I am seeing for bugs.

Joe Zumwalt, Warsaw, Hancock County: Crops continue to be all over the board in Western Illinois. A few of the early fields of corn are beginning to tassel, but there are many more that are barely waist high. I think that it is safe to say that all of the soybeans have finally been planted. Area producers finished up wheat harvest and most were fairly surprised by their yields. Normal summer activity is in full swing: hay baling, roadside mowing, and fixing all of the things that we have spent the last three months breaking. A few rains have moved through, but mainly across the northern part of the county. I don’t know about the rest of you, but the traders in Chicago are in a for rude awakening when it comes harvest time. A majority of the crops may look decent, but they should have looked this way a month ago.

Ken Reinhardt, Seaton, Mercer County: The Fourth of July brought an inch and a half of rain over most of the county. Most of the celebrations moved to the 5th. Mid-week there was another inch or two of rain. End of the week is looking wet. Spraying is getting delayed. I have only seen a couple of cornfields with tassels and the cool weather is delaying crop progress — not a good thing. It is fair week already. Check out the events at {www.mercercountyfair.org}.

Ron Moore, Roseville, Warren County: We received 1 inch of rain on July 4. We also had scattered showers on Wednesday (July 8). The corn crop is improving or maybe it’s tall enough to see only the outside rows now. Some fields are all tasseled and people are scouting for when to spray fungicide. Lots of bean spraying is going on now also. By the end of next week, some of the early-planted 30-inch rows will be closed in. I have not heard of any aphids in our area yet, but the ag press has been talking about them being a problem this year. The little wheat in this area is just about ready to harvest. Oats will not be far behind. Pasture conditions are very good for this time of year.

Jacob Streitmatter, Princeville, Peoria County: Interesting weather we have been having.

Hot to cold, rain to even more rain. Rain amounted from close to an inch to a lot more in some areas. The ponds don’t get time to dry out. Some of the corn is starting to grow well. I’m getting tired of looking at yellow, uneven corn by my house, so I took some of my wife’s Miracle Grow and gave it a try. For some reason, I don’t think it will work. This corn crop cannot have a root system; it’s having a hard enough time finding the nitrogen. Hopefully, we won’t have any strong storms this fall.

Mark Kerber, Chatsworth, Livingston County: Rain on the Fourth of July and two more after that has left us in good shape for awhile. We got the soybeans sprayed and actually fill caught up after a late spring. Now it is up to Mother Nature to take over and produce a good crop. Maybe a week’s trip on a motorcycle is near. Wheat harvest has begun, but has been delayed due to showers and humid weather. I’ve heard yields are decent. Mowing roads, hauling in grain, and buying equipment seem to be the local chores as summer progresses. Everyone will be checking for insect pressure as silks emerge and soybeans grow. Haven’t heard as much talk about fungicide spraying this year. Maybe we should scout and spray instead of just spraying. Markets have gone south.

Exports are still good.

Brian Schaumburg, Chenoa, McLean County: One to 2 inches of rains fell on July 4, an all-day soaker. Crop conditions have improved to where five- to 10-year averages are believed to be attainable. Iowa proved that last year. Chicago Board of Trade prices have plummeted, but basis is very strong. More interest in the average crop revenue election (ACRE) program is being heard. Japanese beetles arrived with a vengeance but nothing worth spraying in fields as yet. Corn planted on April 26 has tasseled. Corn, $3.26; fall, $3.15; soybeans, $11.02; fall $8.81; wheat, $4.27.

Steve Ayers, Champaign, Champaign County: Water, water everywhere with more on the way. We had 1.4 inches of rain on July 4; 0.9 of an inch on July 7, and 1.6 inches on July 8. We expected more rain into the weekend. There are rain chances in the forecast for this week on Monday, Tuesday and Wednesday. Temperatures from mid-60s to mid-80s with plenty of moisture combined for a textbook corn pollination period so far. Starting to see more Japanese beetles. Fieldwork is at a standstill.

Ron Haase, Gilman, Iroquois County: On July 8 we received 0.8 to 1.2 of an inch of rain. Most cornfields in the area are anywhere from the V9 to the R1 growth stage. At V10, the corn plant begins a rapid increase in nutrient and dry matter accumulation and in water usage. A few fields are beginning to show tassels and begin pollination. Area soybean fields are from the V2 to the R1 growth stage. Soybean flowering has begun in some fields. Farmers have been mowing roadsides and hauling grain. Japanese beetles arrived at the beginning of July and have been feeding on plants ever since. The local closing prices for July 9 were $3.19 for nearby corn, $3.13 for new-crop corn, $10.96 for nearby soybeans, and $8.87 for new-crop soybeans.

Wilfred Dittmer, Quincy, Adams County: Not a whole lot to report from our area other than crops are looking better and some jobs are getting done, finally. We received about 0.8 of an inch of rain over July 4 and 5, which delayed some activities, but late beans sure perked up.

Wheat harvest is about wrapped up, I think, and hay making is also progressing. Have heard reports that Japanese beetles are back again in some areas.

Harry Schirding, Petersburg, Menard County: Rainfall last week, 1.63 inches. Rainfall total for July, 1.63 inches. Normal rainfall for July, 3.53 inches. Rain and clouds have slowed wheat harvest. The weather-delayed harvest likely will result in lower test weights for the remainder of the crop. Lower yields seem to coincide with areas where excessive moisture was present. With a majority corn crop pollinating over the next two weeks moisture should be adequate. Although some leaf feeding is visible from Japanese beetles, only a few have chosen to spray either corn or soybeans. Challenging times continue for those trying to harvest hay. Corn nearby, $3.25, down 14 cents; soybeans nearby, $10.79, down $1.34; corn for January, $3.14, down 33 cents; soybeans for January, $9.04, down 96 cents.

Tom Ritter, Blue Mound, Macon County: The Fourth of July brought 1.2 inches of rain and up to 2 inches throughout most of the area. Another shower on Tuesday brought another 0.2 of an inch. The moisture is at a very adequate level. It was finally starting to dry out and when we got the 1.2 on the Fourth of July, we were getting where we needed a little rain. Overall, the corn has improved quite a bit with a lot of the yellowing and stunted areas finally turned to green. But it was very stunted when it was determining ear size, so yields in those areas of the fields definitely will be down fairly dramatically. I’ve seen more and more tassels. Corn planted in April — about 5 percent — is pretty well tasseled.

The next planting was around May 12 and those tassels are just starting to show. Corn was definitely strung out in three different months and has a long way to go before harvest. Soybeans are progressing, but they are still very short. You see a few fields that are 18 inches tall, but most of the soybeans are definitely under 12 inches.

Jimmy Ayers, Rochester, Sangamon County: Last week we received 1 inch of rain. On July 3, we finished planting beans in the bottoms right ahead of the rain. Corn in the area ranges from two leaves to tasseling and silking. The western side of the county that was planted real early is going through the pollination period and looks really good. Bean spraying and mowing are the biggest things for the week. A lot of mowers are out working the roadsides and making them look nice.

Interesting to hear that grain prices rose here Thursday because the dollar was going down. We certainly are tied into the world economy. Corn has several drowned out spots and is very uneven around our area.

We are very happy to have what we have.

South of us is in a lot worse shape, I think.

Japanese beetles are very thick — something you guys will have to take a look at.

Don’t forget to attend your county fairs.

FarmWeek Page 7 Monday, July 6, 2009

CROPWATCHERS Todd Easton, Charleston, Coles County: We are finally in the scout and wait stage here in Coles County with possibly one more sprayer trip over the beans being the last thing on the list of fieldwork to do. Even most of the latest-planted corn made the old knee-high-by-the-Fourth-of-July benchmark. I have always said that needs to be changed to head high by the fourth if you’re talking high-yielding corn nowadays. It rained on our parades on the Fourth with some averaging 2 inches for the week. This shallow-rooted crop actually needed some rain with the exception of the low spots, many of which may just have to be bare dirt for the remainder of the season.

Corn is ranging from V8 to pollination for the late-April plantings. A very few fungicide applications have been made and many growers are scratching their heads over whether to apply expensive fungicide in light of the recent negative market action.

Soybeans are starting to look better all the time, ranging from V2 to R1 stages with spray applicators running hard to shut down the very aggressive weed outbreaks out in those fields. Be sure to take time out with the family for the exciting fairs and farm shows going on all around.

Doug Uphoff, Shelbyville, Shelby County: Corn is anywhere from V3 to V8 in the same field and the early corn, which there wasn’t much of, is pollinating. Beans are at V4 to V5, which is 4 to 5 trifoliate leaves. June rainfall was anywhere from 5 to 6.5 inches. Total since April 1 is 20 to 22 inches. The yellow corn has started to turn green, but is severely stunted. Soybeans are a month to a month and a half behind normal. Most post spraying has been done or is being done. I did see an airplane spraying some corn, but I don’t imagine much Headline will be applied in this area because of the varying height and stages of corn development. I have heard many a farmer comment they are tired of spending money on a crop that has turned out to be one of the most expensive we have ever put in the ground. Mowing of roadsides is being done, and it is still wet enough to get stuck in the ditch in places. I have heard wheat yields from 15 bushels to 75 bushels per acre. First cutting of hay was taken three weeks ago and is looking good for the second cutting in a couple of weeks. Fairs are starting up in the area and Elliott has been working hard preparing for his last year of 4H and busy prepping for college at Southern Illinois University-Carbondale. July 9 closing grain cash prices: corn, $3.25; at Decatur minus trucking, $3.33; fall corn, $3.10; January 2010, $3.25; beans, $10.86; beans at Decatur minus trucking, $10.96; fall, $8.88; January 2010, $9.09; wheat, $4.07; diesel farm, $1.91; soy diesel, $1.81; diesel truck, $2.39; soy diesel, $2.27; ethanol, $2.40; NH3, $425/ton prepay; potash, $800. Hope you thanked a veteran for his or her service.

Reports received Friday morning.

Corn foliar diseases make strong entrance

BY KEVIN BLACK

A number of FS crop specialists, crop scouts, and other observers are reporting a rapid increase in corn leaf diseases, particularly gray leaf spot.

Gray leaf spot is fungal disease of corn that gets its start from spores that are splashed onto the lower part of the plant from infected crop residue. When warm and moist weather conditions prevail, the disease gradually moves up the plant.

David Schaal, St. Peter, Fayette County: We received 1.4 inches of rain on the Fourth of July. Many farmers were hoping for a little shower, to help their beans emerge. We also had cool temperatures with highs in the upper 70s. I finished planting beans on July 2. It seems the beans that were planted on the first and second are slow to emerge. There are still soybeans being planted in the county. The bottom ground along the Kaskaskia River is still plenty wet for planting. The corn crop did a lot of growing this past week. The growth stages of corn varies from 6 inches tall to tasseling. Some of the 6-inch corn may be in the same field as corn that is waist tall.

Crop scouting, finishing up bean planting, mowing roadsides and waterways, and spraying are what most area farmers are now doing. The Chicago Board of Trade seems to think a big crop is coming down the pipe as several cents were shaved off all commodities this past week. Fayette County Fair is going on this week, so we will probably get rain. It always rains on fair week.

Ted Kuebrich, Jerseyville, Jersey County: Jersey County had a very wet July 4 with the county receiving 2.5 inches to more than 4 inches of rain that came slowly. The early corn looks good and the early beans are closing up the rows. Some of the farmers are spraying their corn with a fungicide to try to up the yields. Most of the Roundup beans are being sprayed. Cash corn, $3.44; new corn, $3.13; January corn, $3.24; cash beans, $11.02; new beans $9.04; January beans, $9.21; July wheat, $4.17.

Dan Meinhart, Montrose, Jasper County: Welcomed showers moved through the area on July 4. An all-day rain produced about 0.75 of an inch locally. Farther south about 1 to 3 inches of rain fell. Showers again moved through the area on Wednesday. Amounts varied from barely getting the sidewalks wet to 3.5 inches of rain in a short period of time accompanied by high wind and hail. Beans are still going into the ground where the ground permits. Corn and beans are being sprayed and corn is being side-dressed where conditions are suitable. Showers are in the forecast through midweek.

Bob Biehl, Belleville, St. Clair County: Three inches of rain last weekend (July 4-5) pounded in newly planted wheat stubble beans. The rain was good for the corn; however, as it finally tries to get above knee-high. First-cut beans finally are planted and stands look OK except for a few hillsides that dried out during those low humidity, windy days two weeks ago.

This rain should bring those beans up. There are still some planting wheat stubble beans.

Some fields remained wet and rutted up, and had to be disked in some instances to get them in shape. They are calling for chances of rain in the next five out of seven days. I hope most of the wheat stubble beans emerge from last weekend’s hard rains because I don’t even want to think about replanting at this time. Only about 2 percent of the corn is tasseled in the county and many surrounding counties as well, so don’t blame us for the big, big drop in prices.

What a year! I feel like hibernating until November.

Kevin Raber, Browns, Wabash County: Most planting is completed. There are sloughs in the bottom that probably won’t get planted. An inch of rain was the norm for the Fourth of July and then we had a thunderstorm Wednesday evening. Some places had a couple of tenths and others got 2 inches or more. Fungicide is being sprayed on some of the early corn.

Dean Shields, Murphysboro, Jackson County: On the Fourth of July, we got a nice rain in Jackson County — anywhere from 0.75 of an inch to 3 inches in a few spots. It was a nice rain and believe it or not, we were wanting a little bit. A lot of the corn is tasseling now. There has been some spraying of fungicides with airplanes. We have some wide variances in height and growth of corn. Same with beans. The very early-planted beans are looking pretty decent.

The little beans are pretty little. Wheat harvest is over now. Most of the wheat field beans now will come up because of this rain. Down in my river bottom area, the locks were still down and we still have to pump out the water every once in awhile because all of the low land is planted now. So we are hoping the river will continue to go down and we can get it out naturally. Things are moving along and a few guys are taking a few days off for a break now.

Rick Corners, Centralia, Jefferson County: We had another 3 inches of rain on the Fourth of July. I think that about put the kibosh on planting for this year. I have seen several double-crop acres around that will never get planted and maybe some single-crop acres also. I see corn around that is all the way from tasseling to some that is 3 inches tall and everywhere in between.

Ken Taake, Ullin, Pulaski County: We received a nice 1 inch of rain on July 4. It was a very nice Fourth of July present. It has been hot and dry since and we could certainly use another shower. As late as the crops are, it is going to take a lot of showers to keep them going. Spraying and mowing seem to be the favorite activities right now. The early corn is pollinating. It is hard under these hot and dry conditions. Corn is rolling in the afternoon due to the heat. Beans look pretty good, but they are just very small. We will have to see what weather does for the last of the summer. It will determine how the crop turns out.

Susceptible corn hybrids can be severely blighted by gray leaf spot, with yields measurably reduced. Tolerant or resistant corn hybrids may also be affected by the disease, although to a lesser extent.

Gray leaf spot disease in corn also will often result in higher incidence of stalk and ear rots later in the season.

Gray leaf spot causes formation of elongate, rectangular, pale lesions with darker borders. These lesions may vary in size, but typically are between ¼

and ¾ of an inch in length. The lesions often coalesce (grow together) and large areas of leaf surface may be affected. When gray leaf spot infects corn, our goal is to monitor development of the disease and protect the upper part of the plant so that corn ears will fill normally.

In some cases, foliar fungicide use may be necessary to protect the yield potential of the crop.

In addition to gray leaf spot, common rust lesions are being found in corn. The current weather pattern, with frequent rain events and warm temperatures, remains favorable for infection and development of foliar diseases in corn, soybeans, and other crops.

Growers should plan to make frequent scouting trips in their fields in order to identify problems while management efforts may still be effective.

FarmWeek Page 8 Monday, July 13, 2009

PRODUCTION

Wheat harvest ‘disappointing’ for many farmers

BY DANIEL GRANT FarmWeek

The combination of heavy rains and disease pressure apparently was a “cereal killer” this season, according to wheat growers from around the state.

Wheat harvest as of the first of last week was 62 percent complete in the state (compared to the five-year average of 82 percent) and many yield reports averaged in the 40- to 50-bushel range compared to yield estimates a month ago that averaged 62 to 63 bushels per acre.

“With low yields, low

prices, low test weights, and high vomatoxin levels, it’s going to be a very disappointing wheat crop,” said John Brink, a Washington County farmer and president of the Illinois Wheat Association.

He noted harvest in his area was complete as of last week.

“When you consider the cost of fertilizer we put on the crop, we’re looking at some pretty large losses per acre of wheat (this season).”

Brian Niemann, a farmer from Walshville and president of the Montgomery County Farm Bureau, reported low test weights of 53 to 54

‘The wheat crop was very light.’

— Brian Niemann Montgomery County farmer

pounds per bushel. Brink reported test weights as low as 51 pounds.

“The wheat crop was very light,” Niemann said.

He said he didn’t have as many acres to harvest this sum-

mer as usual due to a shortened planting season last fall and unattractive wheat prices.

Overall, Illinois farmers last fall seeded just 850,000 winter wheat acres compared to 1.2 million acres in the fall of 2007.

Brink believes farmers this fall may seed even fewer wheat acres due to the poor harvest and low prices.

“A number of farmers grow it (wheat) when the economics are most favorable,” he said. “I think we could lose some of those producers.”

David Uhlman, a farmer from Tremont and president of the Tazewell County Farm

Bureau, plans to sow about the same amount of wheat (150 acres) as usual on his farm next season.

He just hopes for a better crop — test weights last week were “light” in the beginning stages of his harvest.

“We have no stand problems, but the test weights are light,” he said. “The terribly wet spring put a huge amount of stress on the crop.”

The biggest fear of farmers who still have wheat to harvest is additional rain, which could worsen the quality of the crop and lead to large discounts, Uhlman added.

No rest for the weary; farmers encouraged to scout fields Farmers who persevered in the face of adversity this spring to plant corn and soybeans, harvest alfalfa and wheat, and apply fertilizer shouldn’t let their guard down now that some of those tasks are complete.

Crop scouting in coming weeks could be crucial to ensure struggling crops have a chance to achieve their yield potential.

Kevin Black, insect/plant disease technical manager for GROWMARK, told FarmWeek a number of insect populations are expanding and in coming weeks could do enough damage to threaten

A Japanese beetle feeds on a corn plant. (Photo by Kevin Black, GROWMARK insect/plant disease technical manager)

yield potential.

“It’s already been such a stressful year for everybody,” Black said. “Nobody wants to

hear there’s more work lined up for them.

“But you’ve got to plan to be out there looking at the

crops,” he continued. “The consequences of missing a problem now could be huge.”

One pest population that already is high in some areas is the Japanese beetle.

Japanese beetles prefer to feed on plants in the rose family, blooming plants, and fruit trees, but they also target soybeans and could turn their attention to corn as it begins to silk, according to Black.

“If you have 20 to 30 percent defoliation of the whole (soybean) plant, it may justify putting an insecticide out there,” Black said.

Another pest that could threaten Illinois soybean yields is the soybean aphid. Aphids in recent weeks have been found

in soybean fields in northeast Iowa, Wisconsin, Michigan, and Ontario, Black reported.

“We’re set up where we could have a problem (with soy aphids) again this year,” he said.

The last major outbreaks of soy aphids in Illinois occurred in 2001 and 2003.

Meanwhile, a pest that could present problems in the near future for corn growers is the corn rootworm. Corn rootworm adults should be coming out within the next week, Black reported.

The lateness of corn planting this season also sets up potential problems down the road with corn earworms and fall armyworms, Black added. Daniel Grant

Volunteer corn growth could present challenges Farmers who are good at growing corn may have to become better at eliminating it as corn plants are popping up more frequently in soybean fields.

Research conducted by Purdue University during a recent threeyear stretch found the prevalence of volunteer corn in Indiana soybean fields exhibited a four-fold increase.

Findings of volunteer corn during the study increased from 3 percent of all fields in 2003 to 12 percent by 2005.

Volunteer corn can rob soybeans of water, nutrients, sunlight, and yield potential, according to the Gowan Co., a Kansas-based crop protection company.

“The goal of producers should be to control as much volunteer corn as possible as early in the season as possible to protect soybean yield,” said Michael Owen, an agronomist at Iowa State University.

“The best management practice involves tank-mixing a graminicide with glyphosate in the first post-emergence treatment to the field.”

The spread of volunteer corn in soybean fields is particularly alarming to some entomologists as it could accelerate the evolution of Bt-resistant rootworm populations.

“Most of the volunteer corn (in soybean fields where triplestack corn was planted the previous season) showed up as being both Roundup Ready and having the Bt gene for rootworm,” said Christian Krupke, a Purdue University entomologist.

Krupke believes the presence of more corn plants in soybean fields could allow some rootworm larvae to survive the winter and develop resistance to the Bt gene. Prior to recent findings, a cornsoybean rotation typically kept rootworm populations in check.

Growers who rotate from Roundup Ready corn to Roundup Ready soybeans, therefore, should find a herbicide other than glyphosate to control glyphosate-resistant volunteer corn, according to Krupke.

Growers also were encouraged to control volunteer corn as early in the season as possible.

FarmWeek Page 9 Monday, July 13, 2009

TRANSPORTATION Time, cost savings for producers?

Study indicates higher truck weights likely safer

BY MARTIN ROSS FarmWeek

A new study weighs in favor of increased, uniform nationwide truck weights — a move that could reduce highway congestion and contribute to “a safer system,” according to Soybean Transportation Coalition (STC) Executive Director Mike Steenhoek.

The STC’s newly released report, Heavier Semis: A Good Idea?, analyzes the potential implications of expanding semi weight limits on the federal/interstate highway system.

The coalition, chaired by Coulter ville producer Dean Campbell, has eyed higher unifor m weights as a way of improving ag transportation capacity and reducing highway congestion.

The study compared the current 80,000-pound, fiveaxle semi limit for federal/interstate roads with a proposed 97,000-pound, sixaxle configuration in terms of motorist safety, infrastructure wear-and-tear, and cost savings and efficiency gains for the soybean industry.

Steenhoek noted perennial congressional debate over weight limits with each sixyear federal “highway bill” reauthorization. The current surface transportation bill expires Sept. 30, and Maine congressmen whose state operates under a 100,000pound state road limit are pushing for higher limits or at the least a waiver of the federal limit.

“Sure, we could benefit from increased capacity for tr ucks, but far mers also

Vegetable growers twilight meeting planned July 30 The annual Illinois Vegetable Growers Association twilight meeting will be at 6:30 p.m. July 30 at the University of Illinois’ St. Charles field research facility about 45 miles west of Chicago.

Facility Superintendent Bill Shoemaker will lead a walk around the research plots, and speakers will describe the research at each stop and give growers an opportunity to ask questions.

For more information, contact Shoemaker at 630-5847254 or by e-mail at wshoemak@illinois.edu.

use the roads and help pay for the roads,” Steenhoek told Far mWeek.

“The last thing we’d want to do is promote a system that’s going to result in more danger for motorists, including ourselves and our families, or that would have a detrimental impact on the infrastructure itself.

“If we can’t answer the motor safety question or the infrastructure integrity question, the issue isn’t going anywhere.”

Over the past 20 years,

the number of fatalities resulting from large tr uck crashes has declined more

At a glance The U.S. House Transpor-

tation and Infrastructure Committee is gearing up for reauthorization of the six-year federal surface transportation bill. The major sticking point likely will be how future highway improvements are funded.

than 50 percent, from 4.38 per 100 million vehicle miles traveled in 1987

to 2.15 in 2007.

The STC study indicates truck safety is “more of a function of the number of semis one would encounter” than of semi weight, Steenhoek said. Addition of one axle would significantly improve braking capacity and stopping performance, the study concluded.

An additional axle also would redistribute the weight of a 97,000-pound semi, virtually eliminating any added highway wear caused by larger trucks,

Steenhoek said.

Producers “stand to gain quite a bit” from the additional capacity heavier semis could provide: an additional 183 bushels per 97,000-pound semi-load and a potential day’s savings in producer grain deliveries.

Proposals to increase weight thresholds nationwide come as some lawmakers seek to prohibit states from setting weight limits higher than the current federal threshold.

FarmWeek Page 10 Monday, July 13, 2009

COMMODITIES

Illinois crops playing catch-up after late start Illinois crop progress in general continued to lag behind last week due to the late start of the season.

The average corn height (41 inches) as of the first of last week was 20 inches below normal while the portion of soy-

corn moving along a little quicker to maturity,” said Larry Hummel, a FarmWeek Cropwatcher from Lee County.

The temperature for the first six days of the month averaged 5.8 degrees below normal, according to the

‘A little more heat would be nice to get the late-planted corn moving along a little quicker to maturity.’

— Larry Hummel FarmWeek Cropwatcher

beans blooming (4 percent) was 25 points below average.

“A little more heat would be nice to get the late-planted

National Agricultural Statistics Service Illinois field office.

Meanwhile, the portion of oats that were ripe last week (8

percent) was 14 percent behind the average pace, just 1 percent of the sorghum crop was headed compared to the average of 29 percent, and wheat harvest as of the first of last week was 62 percent complete compared to the average of 82 percent.

“Wheat harvest has begun (in the northern half of Illinois) but has been delayed due to showers and humid weather,” said Mark Kerber, a FarmWeek Cropwatcher from Livingston County.

Crop conditions in the state last week were rated 57 percent good to excellent, 31 percent fair, and 12 percent poor to very poor for corn and 60 percent good to excellent, 32 percent fair, and 8 percent poor or very poor for soybeans.

Research farms plan field days The University of Illinois agricultural research farms are planning summer field days in July and August.

The Brownstown Agronomy Center will host a field day starting at 9 a.m. July 30. The event will be held rain or shine.

Research topics and presentations will include: fertility management, new nitrogen guidelines for wheat, weed management, prospects for late-planted corn, and managing corn and soybean diseases with fungicides.

A free meal with be served.

The research center is located on Ill. 185 south of Brownstown. For more information, call Robert Bellm at 618-6929434.

The Dixon Springs Agricultural Center will host a field day from 8 a.m. to noon Aug. 6.

Bus tours will leave on the hour. A free meal will be provided.

Topics on one agronomy tour will be pest problems this year, weed control and potential carryover in late-planted crops, and current issues with corn production.

A second agronomy tour will offer presentations on potassium and phosphorous management, biomass production in Southern Illinois, and high-yield soybean management.

A horticulture tour will have speakers on production of tomatoes, peppers, strawberries, blueberries, and blackberries.

The Dixon Springs Center is located on Ill. 145 near Glendale, about 25 miles south of Harrisburg. For more information, call 618-695-2441.

FarmWeek Page 11 Monday, July 13, 2009

FROM THE COUNTIES

B

UREAU — The Beef and Ag Days will be from 5 to 9 p.m. Friday at the Soldiers and Sailors Park, Princeton, and from 11 a.m. to 7 p.m. Saturday at the Bureau County Fairgrounds. Come out and support Bureau County cattlemen.

HAMPAIGN — Farm Bureau, Vermilion, and Piatt County Farm Bureaus will sponsor a local government conference from 9 a.m. to noon Friday at the Farm Bureau office. Lunch will be served. The program will focus on local funding of rural roads, rural development, and emergency medical services.

Call the Farm Bureau office at 217-352-5235 for reservations or more information.

DWARDS — Farm Bureau, Wayne County Farm Bureau, and the Farm Service Agency will sponsor an ACRE (average crop revenue election) meeting at 7 p.m.

Monday, Aug. 3, at the Farm Bureau office. Doug Yoder, Illinois Farm Bureau senior director of marketing and risk management, will be the speaker. Call the Farm Bureau office at 618-445-2113 for more information.

FFINGHAM — The annual member appreciation picnic will begin at 6 p.m. Sunday at Evergreen Hollow Park, Effingham. A free pork burger and hamburger dinner will be served. Members may swim from 7 to 8:30 p.m. at the Effingham Area Kluthe Pool. Call the Farm Bureau office at 217-342-2103

by Wednesday for reservations or more information.

• The Young Farmers Committee is encouraging members to attend a cardio pulmonary resuscitation and an automated external defibrillation class from 10 a.m. to 2:30 p.m. Friday, July 31, at the Effingham County Fairgrounds. Cost is $15, which includes lunch.

Call the Farm Bureau office at 217-342-2103 by Monday, July

C

E

E

Auction Calendar Sat., July 21. 10 a.m. Land Auction.

Virginia Hinch Estate, GREENVILLE, IL. Wm. Beck Auction & Realty.

Sun., July 26. 10:30 a.m. Estate Auction. Willard “Bud” Miller Estate, KERNAN, IL. Bradleys’ and Immke Auction Service.

Tues., Aug. 4. 5:30 p.m. 110 Ac. Shelby County Farmland. Sandra K. Fielden and Nina M. Fielden, FINDLAY, IL. Luke Lee Gaule, Auctioneer.

Fri., Aug. 7. 10:30 a.m. Farm machinery. Tim Godbee, EMINGTON, IL. Immke and Bradleys’ Auction Service.

Sat., Aug. 15. 9 a.m. Large Nine Farmer. Okawville, IL. Riechmann Auction Service.

Fri., Aug. 28. and Sat., Aug. 29. 9 a.m. both days. Consignment Auction. RANTOUL, IL. Gordon Hannagan Auction Co. Sat., Aug. 29. 10:30 a.m. Farm machinery and miscellaneous. Phillip Trainor, PONTIAC, IL. Immke and Bradleys’ Auction Service.

20, for reservations or more information.

• A Progressive Agriculture Safety Day for children ages 7 to 16 will be from 12:30 to 2:30 p.m. Friday, July 31, at the Effingham County Fairgrounds. Various hands-on demonstrations at each of six stations will inform participants of the hidden hazards of farm and rural surroundings.

Register children by calling Julie Stephens at 217-3422103 by Monday, July 27.

On-site registration also will be available, however, each child will need a consent form signed by a parent or guardian. Participants will receive a safety day T-shirt, a take-home bag of goodies, and a coupon for lunch at the Pork Producer’s stand.

F

ORD-IROQUOIS — A series of Viewpoint breakfast meetings each will begin at 7 a.m. The schedule is: Tuesday, Haven’s Diner, Gilman; Thursday, Percfection Coffee House, Gibson City; and Thursday, July 23, Donovan Co-op Elevator, Martinton. Call the Farm Bureau office for more information.

• Doug Yoder, Illinois Farm Bureau senior director of marketing and risk management, will be the speaker at an ACRE (average crop revenue election) meeting at 7 p.m. Monday, July 27, at the Farm Bureau office.

Call the Farm Bureau office for more information.

ANCOCK — The Hancock County Fair will be Wednesday through Sunday at Augusta fairgrounds.

The FFA show will be Friday.

• Young Leaders between the ages of 18 and 35 will meet at 6:30 p.m. Thursday, July 23, at the Hotel Nauvoo. Call the Farm Bureau office at 217357-3141 or e-mail hcfb@adams.net by Monday, July 20, for reservations or more information.

NOX — The Kids Farm Safety Camp Committee will meet at noon Monday, July 20, at the Knox Agri Center. Those interested in joining the committee should contact the Farm Bureau office at 342-2036.

ACOUPIN — Kevin Rund, Illinois Farm Bureau senior director of local government, and Paul Hentze, Illinois State Police District 18, will present an “On the Road” seminar at 7 p.m. Wednesday, Aug. 5, at the M & M Service Co.’s fertilizer plant, Litchfield.

Topics will include U.S. Department of Transportation numbers; commercial driver’s license requirements, and medical cards. The program is sponsored by Macoupin and Montgomery County Farm Bureaus and M & M Service

H

K

M

Co. Call the Farm Bureau office for more information.

CDONOUGH — Become a rain reporter for Farm Bureau.

Call, text, or e-mail rainfall amounts from your farm and Farm Bureau will post them on its website. Call the Farm Bureau office at 309-837-3350 or e-mail mcdfb@logonix.net for more information.

CLEAN — The McLean County Fair will be from Wednesday, July 29, through Sunday, Aug. 2, at the Interstate Center, Bloomington. The fair will feature Tobin’s Pizza Big Smoker’s tractor pull on Wednesday, July 29; antique tractor pulls and local pickup truck pull off on Thursday, July 30; a free Chuck Wicks concert on Friday, July 31; and the Pepsi nationwide demolition derby on Saturday, Aug. 1. Go online at {www.Mcleancountyfair.org} or call 309-663-6497 for more information.

EORIA — Members may order 5-pound boxes of Michigan blueberries for $10. Deadline for payment and orders is Wednesday, July 22. Orders may be picked up from 8:30 a.m. to 5 p.m. Friday, July 24, at the Farm Bureau office.

• A Farm Bureau exhibit will be at the Heart of Illinois Fair through Saturday at Exposition Gardens, Peoria. Volunteers will be working the booth, which will feature a

M

M

P

“spin the wheel” game for fairgoers to answer questions about agriculture.

IATT — Farm Bureau, Champaign, and Vermilion County Farm Bureaus will sponsor a local government meeting at 9 a.m. Friday at the Champaign County Farm Bureau office. Topics will include local funding of rural roads, rural development, and emergency medical services.

Call the Farm Bureau office at 762-2128 for reservations or more information.

• Farm Bureau will sponsor a rules of the road for truckers seminar at 8 a.m. Tuesday, July 21, at the Farm Bureau office.

Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office for reservations or more information.

• Farm Bureau will sponsor its annual member appreciation day at 4 p.m. Thursday, July 30, at the Forest Preserve Park, Monticello. A free pork chop dinner will be served from 4 to 6 p.m. There will be a bounce house and kiddie tractor pulls, and the Sweet Adelines will provide the entertainment. Call the Farm Bureau office at 762-2128 for reservations or more information.

ANGAMON — The Marketing Committee will sponsor a bus trip for a market education tour to Twin Groves Wind Farm and Becks

P

S

Hybrid research facility on Tuesday, Aug. 11. The bus will leave the Farm Bureau office at 8:15 a.m. and return by approximately 5 p.m. Cost is $20 for members and $35 for non-members. Call the Farm Bureau office at 217-753-5200 for reservations or more information.

HITESIDE — Farm Bureau will sponsor an Over the Road seminar from 10 to 11:30 a.m. Thursday, July 30, at the Farm Bureau office. New truck rules such as new entrant audit implications and medical card requirements for commercial driver’s licenses will be covered. Call the Farm Bureau office at 815-772-2165 by Tuesday, July 28, for reservations or more information.

• Farm Bureau, Carroll, and Lee County Farm Bureaus will sponsor a local government conference from 1 to 4 p.m.

Thursday, July 30, at Sauk Valley Community College, Room 2K2. The program will focus on local funding of rural roads, rural development, and local government financing. County, township, and municipal officials may attend. Call the Farm Bureau office at 815-772-2165

by Tuesday, July 28, for reservations or more information.

W

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

FarmWeek Page 12 Monday, July 13, 2009

RURAL LIFE

BARN QUILTS Kankakee County promoting agritourism and rural heritage

BY KAY SHIPMAN FarmWeek

Kankakee County is drawing attention to historic barns and promoting agritourism with Illinois’ only self-guided barn “quilt” tour.

For the second year, a county barn quilt committee has helped create, hand paint, and

hang large paintings of quilt blocks on barns and corncribs around the county.

FarmWeekNow.com View a video or Ken Kashian’s photo gallery of the Kankakee County Barn Quilt tour at FarmWeekNow.com.

John Krumwiede, left, and Jason Tanner hang the completed quilt on a barn owned by Russ and Marilyn Rosenboom, Herscher.

Ten quilts were finished last year, and this year’s goal is to add another 10, according to Holly Froning with the University of Illinois Extension in Kankakee County.

Nationwide, there are 80 barn quilt tours offered featuring about 1,500 barn quilts.

In Kankakee County, many different groups and individuals pooled their talents. They include artists, quilters, students, interested residents, and such groups as the county Extension and the county convention and visitors bureau.

Donations helped pay for the paint and supplies.

Local photographers Clayton and Carolyn Pratt have photographed the quilts and created a movie/slide presentation of project. It may be viewed online at {www.youtube.com/watch?v=V20FFvyNVA}.

Ken Kashian, Illinois Farm Bureau photographer, has an online gallery of barn quilt photos at {http://web.mac. com/kenkashian/KashianSite/ Home.html.} To be eligible for a barn quilt, a barn must be at least 50 years old, located on a road with a hard surface, and visible from the road.

The committee wanted to ensure barn tourists don’t

Kankakee County artists and students, left to right, Cameron Alcon, Austin Glidewell, Sara Gray, and Katelyn Glidewell paint a “Lone Star” quilt block as part of a barn quilt tour project. They were assisted by Matt Fitts and Trevor Alcorn. (Photos by Ken Kashian)

block traffic and are safe while viewing the works of art, Froning explained.

Tour information includes facts about individual quilt blocks and history about the barn, the farm, and family that owns it.

A tour map and information are available online at {http:// web.extension.uiuc.edu/kanka kee/barn/index.html} or by calling the Extension office at 815-933-8337.

The barn quilts are drawing visitors.

“Normally, you don’t have senior citizen buses on country roads,” Froning said.

However, officials aren’t certain how many people have taken a tour because they don’t have a method to track the visitors.

The committee would like to continue adding more quilts in the future, according to Froning.

A calendar of barn quilt photos also has been discussed.

Commodities Conference topic

Midwest region eyeing regional carbon trading, ag’s role Midwestern states are developing a regional “cap-andtrade” program with a heavy agricultural influence in case a federal program isn’t developed, according to the Illinois EnvironDoug Scott mental Protection Agency (IEPA) director.

“We’re working on a model rule that states could look at if they chose to buy in and

implement a regional cap-andtrade system — contingent upon the federal government not doing something,” IEPA chief Doug Scott told FarmWeek.

“We would anticipate the Midwest trying to get the lion’s share of the (carbon) offsets (for a regional program) to come from the Midwest,” Scott explained. “A preference for Midwest offsets is being written into our document.

We’re trying to keep the dollars as local as we can.”

Scott will discuss climate change issues and the implica-

tions for agriculture July 29 during the Illinois Farm Bureau Commodities Conference in the Crowne Plaza, Springfield. Registration will open at 7:30 a.m., with the program starting at 8:30 a.m.

Scott, who plans to take questions from Commodities Conference attendees, will give an update on the Illinois Climate Change Initiative (ICCI), including the amount of money paid to enrolled landowners and the state’s experiences with selling carbon credits on the market.

Scott’s perspective, now that

he has been involved on the state, regional, and national level, is that agriculture has a major role in the climate change discussion.

On the production side, agriculture will need to plan to cope with more periods of flooding and drought, according to Scott.

“That’s the nature of climate change — more significant events of drought and flood conditions, but not more overall rainfall,” he said.

“Where agriculture really comes into play is being able to offer carbon reduction strate-

gies for people who need to buy carbon credits,” the director said.

The state’s ICCI program has proven ag’s offset contribution includes not only no-till and fallow land, but also increased use of methane digesters and trees on woodlands, he noted.

Illinois also has experience in verifying and monitoring carbon credits through Soil and Water Conservation District staffs, and such a system could work in an offset program, Scott said. — Kay Shipman

FarmWeek Page 13 Monday, July 13, 2009

GROWMARK

GROWMARK: from modest start to multi-billion $ co-op Many farmers who do business with local FS cooperatives may not realize those locally owned supply companies are part of the much larger GROWMARK System, a network of cooperatives and subsidiaries that operates throughout North America.

The system didn’t appear overnight; its roots trace back to the 1920s, when Farm Bureau members in Illinois invested money and efforts into forming local cooperatives as a means to ensure a reliable supply of farm inputs and to maintain ownership

First of a series and control of their own business.

In 1927, nine local cooperatives formed Illinois Farm Supply Co., GROWMARK’s first predecessor company.

Through a series of mergers in the early 1960s, FS Services Inc. was formed to serve Illinois, Iowa, and Wisconsin.

In 1980, FS Services and Illinois Grain Corp. consoli-

dated to form GROWMARK. During 1994, GROWMARK acquired United Cooperatives of Ontario, adding more than 30 member cooperatives to the System. Subsidiaries GROWMARK FS LLC and Seedway LLC, based in Delaware and New York, respectively, were added in 2002.

Today, GROWMARK is a multi-billion dollar regional cooperative doing business from the Rocky Mountains to the eastern seaboard and in Ontario, Canada.

The system employs nearly 7,000 individuals — the

majority at local FS member cooperatives and subsidiaries — who provide products and services to more than 250,000 farmers and others who do business with them.

Over the next several weeks, FarmWeek will publish articles about the GROWMARK System.

These articles are designed to explain the comprehensive network of local FS member cooperatives and subsidiaries, and demonstrate how the network works to bring the most current, relevant, and profitable business information to its member-owners.

Storage growth, consolidation grain industry trends

BY KAREN JONES

Competition, consolidation, increased productivity, and the ongoing need to give farmers greater access to domestic and international markets have combined to produce significant changes in the grain industry.

Today, grain operations are likely to have millions of bushels of storage capacity, as well as the ability to ship grain by rail car or barge.

Joe Kapraun, manager of GROWMARK’s grain marketing Division, noted the trend to increase storage space as a result of increased farmer productivity.

“Last year, we saw a tremendous number of grain cooperative members building storage space, and I believe that trend will continue,” Kapraun said. “With the advances we’ve seen in corn and soybean production, the need for more grain-handling capacity is evident.”

Another major trend in the grain industry is consolidation. Stuart Selinger, bureau chief of the Illinois

Department of Agriculture bureau of warehouses, said the number of licensed grain companies is decreasing by six to 10 each year, but the number of actual locations has held steady.

Currently, there are 324 licensed grain companies in the state which operate more than 1,000 unique locations.

He added that Illinois has the most permanent grain storage of any state with 1.18 billion bushels of capacity.

Consolidation has fostered some unique opportunities for partnerships that result in expanded storage capacity, improved efficiency, and the ability to arbitrage grain to additional markets.

One such partnership is Western Grain Marketing LLC (WGM) located near Adair in McDonough County. The LLC has four members — Riverland FS Inc., based in Galesburg; Two Rivers FS Inc., based in Rushville; West Central FS Inc., based in Macomb; and GROWMARK Inc., based in Bloomington.

Construction of a 110-

The 110-car train shuttle loader at the Western Grain Marketing LLC (WGM) facility near Adair in McDonough County is expected to open in August. Once complete, the shuttle loader will be able to load a train with 440,000 bushels of corn in 15 hours. (File photo by Warren Odekirk, GROWMARK’s commercial grain systems manager)

car shuttle loader is under way near Adair, along with storage for 4 million bushels of corn. The facility expects to draw grain from a 30-mile radius.

AgriVisor’s services continue to grow Today’s farmers have more marketing options available than ever before. AgriVisor LLC, a joint venture between GROWMARK Inc. and Illinois Farm Bureau, helps farmers understand and analyze the markets to maximize their return on investment.

“We offer hybrid cash grain contracts through participating grain elevators, brokerage services, and premium advisory services,”

said Rob Huston, manager of AgriVisor.

“We can tailor those products and services to meet the needs of any individual.”

Premium advisory services include the Max-Visor Program, a comprehensive marketing program that offers individualized advice on cash grain contracts, futures and options, basis opportunities, and pricing of crop inputs.

“With the volatility in today’s markets, effective communication regarding risk management can mean the difference between profit

and loss,” Huston said.

In addition to the weekly Cash Strategist, which is published weekly in FarmWeek, AgriVisor offers daily advice and comments free online to Illinois Farm Bureau members, as well as at regular grower meetings and webinars.

Their E-Visor subscription service includes EAlerts, a voice messaging system with selling recommendations, and E-Quotes, daily text messages with up to 12 grower-selected futures, stocks and/or index quotes. — Karen Jones

“This is a great opportunity to provide a service to Western Illinois farmers,” said Ryan Miller, WGM merchandising manager. ”Not only will they save time and transportation costs at harvest, they also will benefit from access to additional marketing opportunities because of the volume WGM can offer.”

Selinger believes the grain industry in Illinois is adapt-

ing well to the changes.

“These new companies seem to be more efficient and are able to offer more sophisticated tools to benefit farmers. Producers can now access a wider variety of marketing tools from their local elevator.”

Karen Jones is publications and news specialist for GROWMARK. Her e-mail address is kjones@growmark.com

Quinn to sign capital bill Gov. Pat Quinn plans to sign the state’s $29 billion capital bill today (Monday), he announced last week. At a news conference, Quinn said the jobs sparked by the bill’s construction projects are the best way to help the state’s struggling economy.

The capital bill also includes authorization for uniform truckweight access up to 80,000 pounds, which has been a long-time legislative goal for the Illinois Farm Bureau and other agricultural organizations.

The governor also mentioned he may be open to signing a temporary state budget that would allow government to continue operating while a final budget is negotiated.

FarmWeek Page 14 Monday, July 13, 2009

PROFITABILITY

Two hands required for fertilizer outlook

BY JOE DILLIER It takes two hands to understand the outlook for fertilizers for the coming year.

There are lots of scenarios which to choose from. Terms such as “on the one hand … and on the other” are naturally part of the discussion.

Consider: What will farm Joe Dillier commodity prices do? Will they go back up? What about the dollar and the value of other commodities such as crude oil?

How about natural gas?

Look at January/February 2010 natural gas futures and you’ll see a substantial “hump” of approximately $2 per million British thermal units above nearby levels. If that remains, we could see higher nitrogen fertilizer prices next spring. (Recall that natural gas is the main input in most nitrogen fertilizers.)

This would be remnant of the “cost-push” scenario that drove nitrogen pricing in the early 2000s.

We also have hurricane season to worry about. Remember Katrina?

If, however, the economy remains weak, hurricanes stay

away, and winter temps stay moderate, the hump may evaporate as we go forward. Natural gas prices would remain closer to current levels under this scenario and nitrogen fertilizer prices would remain more stable to spring.

For the “nearly flat price scenario” to play out, you’d probably also need the international economy — including China, India, Latin America, and other Asian countries — to remain weak for the coming year. That could happen, but governments around the globe have pumped in massive monetary stimulus to keep that from happening.

This brings us to the possi-

bility of a “demand-pull” scenario developing again in fertilizer markets. This type of scenario, with its rising world incomes, increased demand for food, and strong global demand for fertilizer, is what drove the great fertilizer price-explosion from late 2006 through the first half of 2008.

I don’t think we are looking at the potential of anything that dramatic (not even close), but should all the government stimuli bring general commodity markets back before spring, we could be in for some upside surprises in fertilizer pricing, for nitrogen, for phosphate,

and possibly potash, too.

If the events of the past two and half years have taught us anything, it is that these markets are very difficult to predict. And because they are global, seasonal-use markets, they can change extremely quickly with little or no notice.

All the more reason to keep close to your FS retailer to stay abreast of market developments and to stay informed about potential forward-contract pricing opportunities for fertilizers.

Joe Dillier is GROWMARK’s director of plant food. His e-mail address is jdillier@growmark.com

Bigger crops could lead to lower commodity prices

BY DANIEL GRANT FarmWeek Crop prices are expected to trend lower in the near-term after USDA on Friday boosted production estimates for corn, soybeans, and wheat.

USDA in its July crop production report raised its production estimates from last month by 355 million bushels for corn, 65 million bushels for beans, and 95 million bushels for wheat.

Current production estimates were pegged at 12.3 billion bushels for corn and 3.26 billion bushels for beans as acreage estimates were raised last month for both crops.

Beans plantings in particular were raised 1.5 million acres in

in future reports.

USDA last week boosted 2009/10 ending stocks from 1.09 billion to 1.55 billion bushels for corn, from 210 million to 250 million bushels for beans, and from 647 million to 706 million bushels for wheat.

“It eases the concern about tight stocks for soybeans,” Hoops said.

Looking ahead, Sanow believes there may be some

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $10.00-$34.17 $25.90 $23.00-$24.00 $23.33 n/a n/a This Week Last Week 17,436 22,374 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

Change 0.01 0.01

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

This week 81.58 81.46

Prv. week 83.12 83.26

FarmWeekNow.com Links to the latest USDA reports, and comments from AgriVisor’s Dale Durchholz are at FarmWeek-Now.com

Milk price can’t climb past $10 June compared to the March estimate.

Meanwhile, winter wheat production was estimated at 1.52 billion bushels, up 2 percent compared to the June estimate.

M A R K Feeder E T pigFA CTS prices reported to USDA*

(Prices $ per hundredweight) This week Prev. week $55.12 $55.11 $40.79 $40.78

upside potential left in the bean market, but a rally in corn will require either a production scare due to really hot weather during pollination or some type of adjustment to acres or yield estimates.

Change -1.54 -1.80

Lamb prices Confirmed lamb and sheep sales This week 873 Last week 649 Last year 726 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $99.50-$106.75.

Good and Choice 1-2: 60-90 lbs., $105.

Slaughter Ewes: Utility and Good 1-3: $25-$29.75. Cull and Utility 1-2: $25.

Export inspections (Million bushels)

Week ending Soybeans Wheat 07-02-09 14.1 12.1 06-25-09 14.3 11.3 Last year 11.3 20.7 Season total 1145.8 62.7 Previous season total 1037.7 89.4 USDA projected total 1210 980 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Corn 31.1 29.4 40.8 1414.3 2039.3 1700

The situation could lead to a double-whammy for Illinois wheat producers who could face low prices and low yields compared to expectations.

USDA on Friday lowered its yield estimate for Illinois wheat from 63 bushels per acre last month to a current estimate of 59 bushels per acre.

“The wheat numbers just keep confirming how bearish the underlying fundamentals are,” said John Sanow, DTN grains analyst.

Much of the bearishness of the large crop estimates likely already was priced into the markets, according to Sanow, who noted that wheat prices since June 1 have declined about $2 per bushel and corn prices since the second week of June have decreased by $1 per bushel.

But crop prices could trend lower as USDA on Friday lowered its expectations (see graphic).

“We do expect prices will drop a little bit,” said Brian Hoops of Midwest Market Solutions during a teleconference hosted by the Minneapolis Grain Exchange.

Hoops also believes it is “very likely we could see ending stock numbers increase”

The Class III price for milk adjusted to 3.5 percent butterfat for the month of June was $ 9.97 per hundredweight. This was an increase of 13 cents from the previous month’s announcement.

Try as they might, milk prices are not able to pass that magical $10 mark. So far this year’s average price is $10.19, a price that is just above the next-lowest annual average of $9.74 posted in 2000.

Efforts to reduce milk supplies are scheduled to retire more than 102,000 cows and 2 billion pounds of milk.

To put that into perspective, these numbers are a good representation of what our state produces each year with these same cow numbers.

FarmWeek Page 15 Monday, July 13, 2009

PROFITABILITY Corn Strategy

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

Crop ratings an illusion?

This year’s higher crop condition ratings have prompted many analysts to think corn and soybean yields, corn in particular, could end up higher than current USDA forecasts.

While that is a possibility, history is not on their side.

The effective completion of planting has caused many to forget the repercussions late planting might have on yields.

Late planting effectively shortens up the potential length of the growing season, unless warmer-than-normal temperatures extend deeper into the fall than they normally

Basis charts

do. That’s necessary to allow plants to continue adding some dry matter into the kernels at a later-than-normal date, offsetting part of the impact of late plantings.

Historically, corn and soybean yields have tended to fall short of trend on years with late planting, especially those years with extremely late planting such as this year and last.

On average, corn yields fall 6 percent and soybeans 3 1/2 percent below the trends we use. That implies a 151.3bushel corn yield and a 42.4bushel soybean yield.

Still, late planting is not a guarantee of smaller yields.

Both crops ended with abovetrend yields in the late planting years of 1978 and 1979. Still, we have had at least 10 others with late plantings in which yields fell a little, or a lot, below trend.

Admittedly, the current crop ratings are good. But, we have found that early-season ratings are not good indicators of what the final outcome might be. One needs to wait until early August before crop ratings start to offer some insight into potential.

And even then, it’s important not to focus solely on them as they are a “subjective” view of the crop, not an objective one such as the monthly USDA forecasts.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

Cents per bu.

✓2008 crop: Corn prices have fallen to levels that should have little downside risk. We anticipate better pricing opportunities before summer’s end to wrap up needed old-crop sales. If storage is available, it may pay to carry some inventory into the postharvest period. ✓2009 crop: Corn prices are in the window for the 10week cycle to bottom. December appears to have completed the pattern for the move down off the June high. We expect to see prices move higher into August. This may also be a year in which post-harvest prices are even stronger yet. Hold off making new-crop sales. We may only recommend needed harvest sales on the rebound we expect over the next few weeks. ❖Fundamentals: Because of the condition ratings, the trade is talking up the possibility of seeing higher yields than USDA is currently using. Yet the late plantings bring risk of lower yields unless this year’s weather is a repeat of last.

New-crop world ending stocks were raised significantly from last month, but that was mostly due to changes in the U.S.

Soybean Strategy ✓2008 crop: Because oldcrop prices are still at a premium to new-crop ones, there’s no incentive to carry soybeans over. Target a move on August futures near $11 to wrap up sales. ✓2009 crop: Given the extent of the decline, there’s little reason to make sales.

This year may be another in which the best opportunities come after harvest. If you need to price soybeans off the combine, wait to see if November can rally back close to $10 before considering sales. ❖Fundamentals: Persistent Chinese buying of U.S. soybeans is a sign they may not release into the market any of the reserves they have accumulated. We hear Brazil has very little left to sell or ship out of its crop. That implies demand for our soybeans should be strong well into the new crop year. Our

late planting tilts the odds toward lower, not higher, yields. If realized, the fundamental structure will be relatively tight until the new South American crop is assured.

Wheat Strategy ✓2009 crop: Wheat prices have been in a steady decline since June, but we could be seeing early indications of a bottom.

We don’t advise new-crop sales at this time. But if sales are behind recommendation, use rallies back toward $5.50 on Chicago September to get caught up.

All of the bushels you plan to sell directly off the combine

should have been priced. ❖Fundamentals: Now that winter wheat harvest has pushed beyond 50 percent, downward harvest pressure should begin to subside. Producers are said to be less interested in making sales. Export demand is starting to show some improvement.

Buyers have not booked much ahead this year. That puts them in a position of needing to buy wheat/flour more aggressively to keep the pipeline adequately filled. Egypt’s entry back into the market should stimulate other buyers to “step up to the plate.”

FarmWeek Page 16 Monday, July 13, 2009

PERSPECTIVES

Outsourcing or colonization?

We have all heard of outsourcing hiring a firm to perform a function more cheaply or efficiently than a company can do.

For example, telephone call centers have been outsourced to India; manufacturing has been outsourced to Asia. Well, it is happening — big time — in agriculture.

Governments of capital-rich but landWILLIAM poor countries, such BAILEY as Saudi Arabia, China, and Kuwait, have leased or purchased huge amounts of land from the governments of landrich but capital-poor African and Asian countries.

One recent report noted that China over the past several years has entered agreements to lease or purchase almost 7 million acres in a number of countries.

The report also pointed out that in support of its investments, China has 11 agriculture research stations and

more than 1 million workers in Africa alone.

For an entity in one country to purchase land in another is not new. For example, the term “banana republic” was coined for Central American countries that sold land to international firms so they could grow bananas for export. A major U.S. cotton grower has long owned cotton land in Australia.

What is new this time is that the land negotiations are between governments, not between businesses. The investment goal in the past was to produce products for the global market.

The new government-to-government arrangements seem to be directed at producing commodities that may be sent directly back home without entering into world commodity markets.

For agricultural exporters such as the United States, this means a potential loss of markets as countries outsource the production of their food needs rather than depend on world markets to purchase the food.

During the sharp increase in com

modity prices last year, major exporting countries, such as Argentina and the Ukraine, heavily taxed or completely banned exports of certain products.

The goal was to hold down domestic food prices.

As a result, countries that depend on imported food — China imports 70 percent of the soybeans it consumes — decided to secure their own sources of production by purchasing agricultural land in other countries.

There are some positive aspects in the investments for the poorer country: improved infrastructure, better marketing, new seed varieties, and better management.

Agricultural research is traditionally underfunded, and these investments are a way to increase agricultural productiv-

ity that a land-rich but capital-poor country may not be able to do on its own.

However, others see the attempts by governments to tie up land in other countries as a form of colonialism. The arrangements to secure land are often done in secret with only senior government officials from each of the countries involved in and benefitting from the negotiations.

Those who own the land under discussion or who have farmed it for generations are not part of the discussions or the agreement.

Whether this form of agricultural outsourcing is the wave of the future is not clear. With more than 40 million acres of farmland around the world involved in this process, it certainly is an issue those involved in agriculture will be closely watching.

Professor William Bailey chairs the agriculture department at Western Illinois University, Macomb. His e-mail address is WC-Bailey@wiu.edu.

The ‘Deadwood Gang’ of the insect world serves purpose Mention “Deadwood Gang” and people may visualize a band of cowboy desperados. Others might be reminded of people who do not carry their load in the workplace. To entomologists, though, the term would be appropriate for a group of insects that feed on dead wood.

Zoologists sometimes classify animals according to the type of food the animal eats — plant eaters, animal eaters, or dead-stuff eaters. Technically, the plant feeders are herbiTOM vores, the TURPIN animal eaters are carnivores, and the dead-stuff eaters are saprophytes.

Insect saprophytes include various species of fly maggots that consume the flesh of dead animals, animal manure, or rotting vegetation. Also included are dung beetles that feed on mammal manure and burying beetles that feast on dead animals.

In general, we humans don’t mind having insect saprophytes getting rid of dead

stuff. Just part of nature’s way of recycling, we say.

Wood-eating insects also are valuable recyclers in nature.

These insects consume and digest wood and, as a result, recycle nutrients into the forest ecosystem. Without the activity of wood-eating insects, dead trees would rot very slowly and replacement trees would grow more slowly due to a reduced nutrient supply.

However, insects don’t distinguish between dead trees and houses and furniture. So when saprophytic insects ply their ecological trade on our wooden possessions, we cry foul and brand the perpetrator as a pest.

So which insects are the despicable desperados of the deadwood gang? Those brazen enough to try to recycle “our” wood certainly qualify.

The first that comes to mind are termites. There are some 3,000 species of termites in the world. All termites are social insects that live in a colony of thousands of individuals ruled by a queen.

The nests of many termite species are located in the soil.

From their nests, the termites launch their search for food, generally wood. Once wood is found, the termites chew it up

and swallow it into their gut, where protozoa or bacteria aid in the digestion of the cellulose.

Termites are the most important wood-damaging insects in the world. The cost for preventing and repairing termite damage in the U.S. is estimated to exceed $3 billion annually.

Long-horned beetles also are part of the deadwood gang. They get their name because their long antennae often exceed the length of their body. Unlike termites that seldom attack living trees, the long-horned beetles include some species that attack and kill specific trees. The emerald ash borers and Asian longhorned beetles are two examples.

The larvae of the longhorned beetles feed on trees and leave tell-tale tunnels in the wood. Many species feed only on freshly fallen trees and, therefore, are an important contributor to the onset of decay. The extensive tunneling and sawdust-like manure left by the feeding larvae suggest the name sawyer, a term applied to saw-wielding woodcutters, for one species of this group of insects.

A small insect that also

shows up in dead wood is known descriptively as the powder-post beetle. This beetle’s name is based on production of fine powder as it bores in dry wood, such as furniture, floors, tool handles, and beams of log cabins.

Carpenter ants, as their name suggests, also are associated with dead wood. These ants don’t feed on the wood, but they do build their nests in dead and rotting wood. Carpenter ants also will build nests in the structure of buildings, especially where adequate moisture is present.

Another insect carpenter, the carpenter bee, will bore

holes in wood to construct nest cavities. Like carpenter ants, carpenter bees chew, but do not consume, wood to fashion a nest cavity.

Even some of our worst insect pests have a good side, including those that feed on wood. In addition to being nutrient recyclers, these insects can become food for other animals. That’s the reason the insects of the deadwood gang shudder when the woodpecker posse comes to town.

Tom Turpin is an entomology Extension specialist at Purdue University, West Lafayette, Ind. His email address is turpin@purdue.edu.

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