F U T U R E G E N BA C K E R S celebrated when the U.S. Department of Energy issued an official decision on the project. ..............2
ILLINOIS WIND ENERGY will pump nearly $2 billion into the state’s economy from existing wind farms and more are coming. .........3
FEDERAL LEGISLATION will cover many transportation issues and could negatively impact some ag exemptions. ......................4
Monday, July 20, 2009
Two sections Volume 37, No. 29
FAPRI pegs higher ag costs to climate bill Stallman: House climate plan a ‘fools errand’? BY MARTIN ROSS FarmWeek House climate policy proposals are “not the answer” for farmers, consumers, or, for that matter, the world, American Farm Bureau Federation (AFBF) President Bob Stallman last week told senators preparing to debate emissions “capand-trade” legislation. AFBF executive public policy director Mark Maslyn warned the consequences of the House plan “are enormous not just for agriculture but for the country.” A new report by Missouribased Food and Agricultural Policy Research Institute (FAPRI) estimates the House bill would cost the average Missouri farmer an added $11,000 a year by 2020 and more than $30,000 by 2050. Given the pace of climate debate, Maslyn was concerned that “few members of Congress really know what is in this bill” and hoped ag interests could help the Senate “do a little better.” Stallman told Senate Environment/Public Works Com-
mittee members House measures would be ineffective “if we really want to change what the world’s climate will be in 40 or 100 years.” Unless China, India, and other countries adopt similar greenhouse emissions restrictions, the U.S. would be “embarking on a fool’s errand at great cost to our economy and our children and grandchildren.” Missouri production costs
FarmWeekNow.com To learn more about the potential impacts of climate change legislation on Midwest farmers, go to FarmWeekNow.com.
would increase by 8.1 percent for corn, 4.4 percent for soybeans, and 10.4 percent for wheat if the bill became law, FAPRI stated. Study co-author Pat Westhoff pegged higher costs to oil and natural gas expenses related to proposed caps on greenhouse gas emissions, and said the cost increases likely would be similar across the Midwest.
As input costs increase, growers could adjust input usage and the mix of crops produced, with implications for yields, production, and prices, according to FAPRI. And that, Westhoff told FarmWeek, could impact future farm investment. But he stressed the bottom line ultimately will depend on the extent to which Congress allows producers to market emissions “offsets” generated through conservation, forestry, and other emissions reduction/sequestration strategies. “Anything that affects profitability of crop production is going to have an effect on the value of land, both to sell and to rent,” Westhoff said. “If the whole story was the increase in cost we’re reporting here (in the FAPRI study), that would tend to put a downward pressure on land prices and rental rates. “But we haven’t looked at the other side of the ledger. What happens with the ability to sell offsets? What happens if there’s a big enough change in crop prices? Those may actually offset some or potentially even all of the impacts we’re seeing here. “To make an extreme case, suppose we had large shifts of
American Farm Bureau Federation President Bob Stallman, right, testifies before U.S. Senate Environment and Public Works Committee members considering House “cap and trade” proposals. Stallman, flanked by Environmental Defense Fund President Fred Krupp, told lawmakers the bill “will have virtually no impact on the earth’s temperature in the year 2050,” but would pose “enormous economic consequences for our country and the agricultural sector.” (Photo courtesy of the American Farm Bureau Federation)
land into forestry? That would make farmland more valuable than it is today.” But while some groups, including the National Association of Wheat Growers, support the House plan, Stallman told lawmakers fruit and vegetable growers unlike row-crop farmers “aren’t going to have any real opportunity to participate in the offset markets.” According to The Fertilizer Institute’s Estelle Grasset, the
Waxman-Markey bill could encourage widespread “fuel switching” — replacement of coal or other higher-emissions energy sources with natural gas, an important nitrogen fertilizer feedstock. Meanwhile, the bill’s ag provisions encourage movement from commercial fertilizer to use of manure, a move that may conflict with some more prescriptive farm “best management” practices, Grasset said.
State budget complete, now come cuts Periodicals: Time Valued
BY KAY SHIPMAN FarmWeek
The spending cuts will begin in state government now that the General Assembly passed and Gov. Pat Quinn signed a state budget. However, the budget appropriates funding in a lump sum instead of through line items and allows the Quinn administration to determine spending levels and cuts, said Bart Bittner, Illinois Farm
Bureau associate director of state legislation. “The Illinois budget is cut to the quick and requires Illinois government to borrow from its employee’s pension plan to provide a balanced budget,” Bittner said. During floor debate on the vote, many lawmakers said they supported the budget changes to avoid shutting down state government. “This budget was put together in a very unconventional way and will require extensive review to surface all the implications,” Bittner added.
FarmWeek on the web: FarmWeekNow.com
The General Assembly passed legislation allowing the state to borrow against the state’s pension system. The bill generates a total of $3.46 billion in short-term bond funds. Of that funding, $2.23 billion will be dedicated to human service programs and services and the remaining $1.23 billion will be spent at the governor’s discretion, according to Bittner. The budget implementation bill, which also passed, sets out many provisions by which state government will operate. Some of the key points are: • Up to $1.1 billion dollars
may be held in reserve from any and all state agencies at the governor’s direction; • There will be no cost-ofliving increases and 12 unpaid days for state lawmakers; • Per-student funding level for education is $6,119; • Designated funds will be swept from nearly all segments of state government; and • Emergency rules to implement the budget may be adopted with approval from the legislative Joint Committee on Administrative Rule. Bittner emphasized that See Cuts, page 3
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, July 20, 2009
Quick Takes RIVER FEES ‘ILL-ADVISED’ — Commercial river interests last week pushed Congress to sink an administration-proposed lock usage fee for the barge industry. The Waterways Council Inc. (WCI) opposes a proposal to phase out the current inland waterways diesel fuel tax in favor of new user fees. WCI President Cornel Martin argued fees are “intended ultimately to triple the taxes paid by commercial users of the waterways system,” likely forcing shippers to divert cargo to congested highways and railways. Fees would be imposed on the Mississippi River and at Chicago and St. Louis ports, among others. The idea was rejected by the previous Congress, but Acting Assistant Secretary of the Army for Civil Works Terrence Salt recently testified in support of lockage fees. In a letter last week, bipartisan lawmakers asked colleagues in districts “dependent on a navigable waterway with a lock” to sign on in opposition to the proposal. MOWER MAKERS MULL E15 — The Alliance for a Safe Alternative Fuels Environment (AllSAFE), which represents recreational boats and marine engine, chainsaw, lawnmower, motorcycle, snowmobile, and related equipment/vehicle manufacturers, has challenged the Environmental Protection Agency (EPA) about Growth Energy’s fuel waiver application for E15 (15 percent) ethanol gasoline blends. In comments to EPA, AllSAFE voiced concerns over proposed expansion of the waiver request to include “bifurcating” the fuel supply — allowing both existing standard E10 blends and E15 in the market simultaneously. “E15 has not been sufficiently tested and poses a hazard that could potentially bring physical endangerment to consumers,” said Kris Kiser, spokesman for AllSAFE. Growth Energy’s Michelle Kautz countered that an “immense amount of testing has shown that there is no scientific justification for the 10 percent limit on ethanol.” She cited comprehensive studies over the past two years documenting safe higher blend use in 100-plus vehicles, 85 vehicle and engine types, and 33 fuel-dispensing units. CONSERVATION CONGRESS BACK — Illinois Natural Resources Director Marc Miller is bringing back the Conservation Congress program, but will use a different process than previous congresses. Farm Bureau members are encouraged to participate. Efforts to surface ideas will start with subcommittee meetings of the Illinois Department of Natural Resources (IDNR) Advisory Committee. The three subcommittees on youth recruitment, public access, and funding each will meet three to five times, starting at 5 p.m. today (Monday) and continuing through October when the congress will meet Oct. 24-25. Meetings are open to the public and don’t require credentials or registration. Each meeting will contain time for public comments. County Farm Bureaus have received information about Conservation Congress. Meeting details are posted online at {www.dnr.state.il.us/index.htm}.
(ISSN0197-6680) Vol. 37 No. 29
July 20, 2009
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard Advertising Sales Manager
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GOVERNMENT
DOE announcement ‘major step’ toward FutureGen realization BY MARTIN ROSS FarmWeek
Supporters of Mattoon’s long-delayed FutureGen facility celebrated an important federal formality last week as the U.S. Department of Energy (DOE) issued its official “record of decision” (ROD) on the potentially groundbreaking coal power/sequestration project. DOE recently reached an agreement with the FutureGen Alliance — a consortium of utility, coal, and related interests — to reactivate activities aimed at construction of the country’s first commercial-scale, fully integrated carbon capture/underground sequestration (storage) project. The ROD is a final public decision that certifies the site meets environmental requirements necessary for the project. An environmental impact statement on the proposed project was completed in November 2007, but former Energy Secretary Samuel Bodman shelved FutureGen in early 2008 as being potentially too costly. In February, Congress approved $1 billion for “clean coal” research, with spending at DOE’s discretion. Illinois Gov. Pat Quinn called release of the DOE’s record of decision “a major step forward on our journey to build the world’s cleanest burning coal-fired power plant.” Quinn
pledged to continue to work with the FutureGen Alliance, DOE, and others “to make FutureGen a reality.” “We look forward to continuing to work together as we move forward on restarting design activities, updating the cost estimate and expanding membership in the Alliance so that the people of Mattoon, our nation, and the world can reap the benefits of FutureGen,” alliance CEO Michael Mudd stated. A final decision on FutureGen is expected by early 2010. FutureGen technology could prove crucial to Illinois agriculture. During an Illinois Agribusiness Roundtable in Bloomington, Archer Daniels Midland Co. Vice President Greg Webb argued U.S. House proposals to cap future greenhouse gas emissions would impose a “disproportionate” penalty on Midwest coalpowered electrical generation. Movement from coal to natural gas-based generation could constrain feedstock supplies for the fertilizer industry and greatly boost farm anhydrous ammonia costs. If carbon sequestration will be necessary to offset the costs of congressional emissions mandates, “we’d better get started,” American Farm Bureau Federation policy analyst Alison Specht told the Illinois Farm Bureau Board of Directors.
Sept. 8-10
Bike ride heads east to raise funds for IAITC Cyclists will ride through Eastern Illinois Sept. 8-10 for the 14th Annual Illinois Agriculture in the Classroom (IAITC) Bike Ride. The event, hosted by the IAA Foundation, will cover routes through Clark, Coles, Cumberland, Douglas, Edgar, Effingham, Jasper, Moultrie, and Shelby counties. Riders will stop at about 25 schools along the route. At each school, the riders will present a skit focusing on the importance of agriculture and discuss bicycle safety. IAITC is dedicated to teaching students about the benefits of modern agriculture. “This ride not only provides an education for the students, but also the cyclists,” said Paul Roney, bike ride co-chair. “I farm in Central Illinois, and this ride has allowed me to see firsthand different agricultural issues facing my peers around the state.” “The bike ride is a lot of fun and provides an opportunity to meet a lot of great people and raise funds for a great cause,” added Stan Grebner, the other bike ride co-chair. All ride routes follow paved roads and will begin and end in Mattoon each day. Riders may participate one,
two, or three days and have an option to ride short (40 miles), medium (65 miles), or long (100 miles) routes. Riders who register by Aug. 21 will save $20 and pay only $75 for registration. After that date, the registration fees will increase to $95. Individuals who raise money for IAITC will receive special rider benefits. Those who raise donations of $250 to $499 will receive free registration; donations
of $500 to $900 will garner free registration and meals; and those with donations of $1,000 or more will receive free registration, meals, and lodging. All cyclists who raise money for IAITC will have their names entered into a drawing for a new bicycle donated by Vitesse Cycle Shop, Normal. More registration details are available online at {www.iaafoundation.org} or by calling 309-557-2230.
YOUNG SHOWMEN
Cole Brown, 5, left and his brother Colton, 8, show their Yorkshire Hampshire hogs during the market gilt class of Clinton County 4-H Fair in Carlyle last week. Their parents are Cary and Connie of rural Pocahontas. See what influence 4-H fairs can have on participating youth on page 16. (Photo by Ken Kashian)
FarmWeek Page 3 Monday, July 20, 2009
GOVERNMENT
Illinois harnessing economic bonanza from wind State primed to tap federal energy stimulus money
BY KAY SHIPMAN FarmWeek
Wind energy is expected to pump billions into the state’s economy with more dollars anticipated as more wind projects are completed. “This is an exciting time to be in wind energy — even in a credit crunch,” said David Loomis, an Illinois State University (ISU) economist. Last week at a state wind power conference in Bloomington, Loomis gave the results of a new ISU state economic impact study of wind energy development. Loomis based his study on 17 existing wind farms. He noted another 56 projects have been proposed but have not received county government permits. Developers are considering proposals for another 22 projects. “There’s a lot more coming,” Loomis quipped. The existing 17 wind farms are expected to contribute nearly $2 billion to the state’s economy over the farms’ 25year lifespan. Loomis added the projects could operate longer so the economic contribution may be larger. Economic benefits from wind energy development have been notable in Illinois, according to Loomis. “The impact (of new jobs) is greatly magnified in small communities,” he said. Wind developments also provide a steady income of lease payments to landowners, strengthen the local tax base, and offer stable energy production costs, Loomis said. Statewide, wind farms directly created 934 construc-
Wind energy from turbines, such as this one in McLean County, will contribute nearly $2 billion to the state’s economy from the 17 existing Illinois wind projects over the projects’ 25-year lifespan, according to a new Illinois State University study. (Photo by Ken Kashian)
tion jobs and 65 long-term jobs for a total of $92 million. Wind energy projects also have substantial indirect economic impacts. Landowners have received $4.36 million in annual payments. Local governments have received $11.4 million in annual property taxes. Businesses that supply materials and services to the construction project or construction workers created 5,085 new jobs, which
MONEY TALK
pumped $695 million into local economies. Another 227 new indirect jobs were created once the project began operation and are contributing $42 million annually to local economies. The state will gain another economic boost if Illinois manufacturers supply the wind energy industry, Loomis noted. He added 200 manufacturers from Illinois and nearby states attended a oneday meeting on supplying the wind industry last week in Bloomington. In addition, international turbine manufacturers are considering building assembly plants in the U.S. “There’s tremendous opportunity in the next two years to land a plant in Illinois or in a neighboring state,” Loomis said.
The Department of Energy (DOE) official who will help distribute $16.8 billion in federal stimulus dollars sees increased government emphasis on renewable energy, including wind energy. “The change under this administration is more (federal) agencies are involved ... It’s a good thing (energy) now crosses government agencies. We need to do this to be successful,” said Gary Nowakowski, renewable energy technology branch chief with DOE’s Office of Energy Efficiency and Renewable Energy (EERE). Illinois’ wind energy production also has changed, Nowakowski said, since he moved from the state after living near Chicago for 20 years. Gary “In 2002, Illinois didn’t have a single turbine. Nowakowski There’s been tremendous progress,” he said. “You ought to be proud of what’s happening in Illinois.” Nowakowski outlined federal stimulus funding for renewable energy, including wind energy, last week during a state wind power conference in Bloomington. He described several renewable energy initiatives that are occurring in USDA, the Department of Labor, Internal Revenue Service, Federal Aviation Administration, Department of Interior, Environmental Protection Agency, and Federal Energy Regulatory Commission, as well as DOE. Of $787 billion in federal stimulus funds, about $100 billion is dedicated to energy, according to Nowakowski. Roughly $40 billion of the energy funds is allocated for clean energy, including $16.8 billion for EERE programs. EERE will distribute $3.1 billion in state energy programs. Nowakowski estimated Illinois might receive $1.4 million of those funds under the traditional distribution formula. EERE’s research and development budget was doubled to a total of $2.5 billion with $1.3 billion earmarked for wind energy and solar energy and $800 million for cellulosic/biomass research. Universities may compete for $24 million that will be awarded to three recipient university groups to conduct wind or hydropower research, he added. The government also is planning major upgrades to its wind energy research facilities and for facilities to test newer wind technology, such as longer turbine blades. “As turbines get bigger, their drive trains get bigger. We’ve outgrown facilities to test drive trains for reliability,” Nowakowksi explained. One expected wind funding announcement was made Friday. Department of Energy Secretary Steven Chu announced 28 new wind energy projects would receive $13.8 million, including $12.8 million in federal stimulus funds. The recipients include the Illinois Institute of Technology, Chicago, which will receive $749,877 to develop a market stimulation tool to facilitate wind energy integration. While the government will award other grants, Nowakowski anticipated increased government interest in loan guarantees, especially in energy technology. “This (loan guarantees) is a big area of interest for Secretary Chu,” he said. — Kay Shipman
Cuts
Illinois State Treasurer Alexi Giannoulias, left, chats with Illinois Farm Bureau Vice President Rich Guebert Jr. at the IFB office in Bloomington last week. Giannoulias announced the state’s farm link-deposit program, Cultivate Illinois, again offers a link-of-credit option after he implemented new safeguards. About 11,200 farmer borrowers participate in the program, which is the largest of its kind in the U.S. (Photo by Cyndi Cook)
Continued from page 1 although the budget bill contains funding for each state agency and state services and programs, the administration has the discretion to decide what programs and services will be funded. This is different from the usual practice of the General Assembly passing a budget with specific line items and amounts, he noted. Bittner pointed out the final budget did not include proposed increases to agricul-
tural- and conservation-related fees that had been opposed by IFB. During the November veto session, the administration and General Assembly will be able to assess the amount of revenue generated. That information will help determine whether a new funding source will be necessary to fund the remainder of the fiscal year as well as provide key information about revenue needs for fiscal year 2011, Bittner explained.
CAPITAL BILL THANKS IFB President Philip Nelson noted IFB members achieved a significant milestone when the governor signed the capital bill. The bill includes authorization for uniform truck weight limits up to 80,000 pounds, a long-time legislative goal for IFB and other agricultural organizations. “It took several years of hard work and persistence to succeed,” Nelson said. “Thank you to all of you who worked together to make this happen.”
FarmWeek Page 4 Monday, July 20, 2009
GOVERNMENT
USDA report offers little livestock ‘ammunition’ BY MARTIN ROSS FarmWeek
A new USDA manure management report provided little ammunition for producers seeking to stave off efforts to regulate animal wastes as hazardous materials, but Farm Bureau remains hopeful a federal court nonetheless will rule in favor of livestock producers this fall. Trial is scheduled Sept. 21 in Oklahoma Attorney General Drew Edmondson’s lawsuit accusing a dozen Arkansas poultry processors of polluting Arkansas and Oklahoma watersheds. The case has
raised fears of similar lawsuits being filed against producers and processors and expanded regulation particularly of concentrated animal feeding operations (CAFOs). Producers argue livestock wastes should not be regulated as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). A congressional proposal to exempt manure has not yet been reintroduced this session, and American Farm Bureau Federation (AFBF) regulatory specialist Tyler Wegmeyer sees “efforts in
Congress to attack CAFOs.” Producers saw some progress in May when a federal appeals court blocked Edmondson’s injunction against manure application. But Wegmeyer warns producers not to “get too excited” that a new USDA Economic Research Service (ERS) report will provide “ammunition” against regulations “we all fear are coming down the road.” AFBF pushed the study as part of the 2008 farm bill in the absence of a legislative CERCLA exemption. However, USDA’s report to Congress did not
address the Oklahoma case and suggested mandated nutrient management plans would have little impact on the structure or state of the livestock industry. “I would characterize it as kind of disappointing,” Wegmeyer told FarmWeek. “They didn’t address the specific question we really wanted them to — the economic consequence to the farmer if manure was classified as a hazardous substance, if this case went against us. “(ERS) basically downplayed the effect of environmental regulation. They talk
about 2.5 to 3.5 percent additional production cost for additional regulation that could be put into the system. They say there’s going to be a minimum impact, and that the ones that would be hit the hardest would be the large farms.” Prospects for a congressional CERCLA remedy do not appear likely, Wegmeyer said. An unfavorable court ruling poses “catastrophic” implications for livestock operators and likely would spur ag groups and farm lawmakers “to move as fast as we possibly can to protect our farmers,” he suggested.
Congress eyeing rules of the road, highway funding Producers can’t afford to be asleep at the wheel as Congress debates regulatory changes that could slow ag commerce, Soy Transportation Coalition (STC) Executive Director Mike Steenhoek warns. Forthcoming federal highway bill reauthorization will cover a wide range of issues, from road and intermodal transportation projects to federal motor carrier regulations. Steenhoek sees an “emerging drumbeat” to remove the current ag exemption from “hours of service” limits for commercial semi drivers. Under federal motor carrier safety regulations, most opera-
tors carrying goods may drive a maximum 11 hours only after 10 consecutive hours off-duty. Excluded are drivers who transport ag commodities or supplies, stay within 100 airmiles of their base of operations, and operate during planting and harvesting seasons. Charges that the existing ag exemption creates a potential safety hazard are “highly disputable,” Steenhoek said. “When it’s time to harvest and you need to get your grain and oilseeds into the bin or to your original delivery point, you need to take advantage of that opportunity,” he told FarmWeek. “We’re so depen-
dent upon the weather. You really need a high degree of flexibility for agriculture.” The American Trucking Association (ATA) Agricultural and Food Transporters Conference refuted a recent U.S. Department of Transportation (DOT) report alleging that ag crash rates, violations, and “out-of-service” rates have risen since 2005. ATA consultant and 12-year DOT veteran Ronald Knipling questioned those findings, arguing new ag restrictions would have “little measurable effect on short-haul trucking safety.” House Transportation and Infrastructure Chairman James
Oberstar (D-Minn.) has proposed $500 billion for transportation over the next six years, including $100 billion for highways. Steenhoek stressed the need to ensure future highway funding mechanisms do not “adversely or disproportionately harm agriculture.” He fears debate may bog down amid disagreement over whether to generate funds through continued fuel taxes, new taxes on miles traveled, or even an “infrastructure bank” that would authorize public-private funds for national or regional projects. New funding in some form
will be crucial: Steenhoek noted only 11 percent of the $787 billion in recent stimulus funding was allocated for transportationinfrastructure projects. And part of those funds have been targeted to water projects, electrical transmission, or similar improvements. “Really only 7 percent of the overall legislation actually is going toward transportation projects,” Steenhoek said. “A lot of that is for highspeed rail and projects for urban America. There’s really a small percentage that will have any meaningful impact for rural America.” — Martin Ross
RC seeks less red tape for short-haul truckers Illinois Farm Bureau’s Resolutions Committee (RC) has recommended a structural overhaul of the organization’s transportation policies, with some proposed fine-tuning for shorthaul farm truckers. Roger Hardy, chairman of the RC State and Local Government (SLG) Subcommittee, noted “regrouping” of various highway, vehicle registration, and railroad/railway provisions into a more unified transportation policy. The RC will reconvene in November to develop final policy proposals for discussion at IFB’s Dec. 5-8 annual meeting in Chicago. The committee supported exemption of farm-to-market transportation of ag products from U.S. Department of Transportation (DOT) number/Unified Carrier Registration requirements. Johnson County Farm Bureau, which offered the resolution, noted many markets for Southern Illinois producers are in neighboring states and sought to allow personal farm vehicles, pickups, and livestock trailers to move across state lines without federal registration. “People who haul livestock in gooseneck trailers may be required under current definitions to have a DOT number,” Hardy related. “That requires more paperwork and more reporting which may not really be necessary.” Transportation safety also was a priority for the RC. It proposed allowing transfer of anhydrous ammonia from a maximum 12,000gallon capacity cargo tank motor vehicle into 3,000-gallon or smaller capacity containers mounted on farm vehicles or into 6,000-gallon containers mounted on motor-driven applicators only if the cargo tank vehicle has been converted to in-field specifications. SLG members noted transferring anhydrous from a 12,000gallon tanker with standard 2 1/2-inch plumbing at roughly 500 gallons per minute greatly exceeds “acceptance” by a 3,000-gallon vehicle with one-inch plumbing. That method of transfer is safer than hauling large quantities of anhydrous in smaller vehicles over several trips, “but we have to make sure that the method of putting it into these farm vehicles is also safe,” the subcommittee advised. — Martin Ross
FarmWeek Page 5 Monday, July 20, 2009
GROWMARK
Technology driving change in GROWMARK seed business BY HEATHER MILLER
The GROWMARK Seed division is growing. In the past 10 years, GROWMARK Seed added three brands to its portfolio, put more local district sales managers on the ground, and saw sales increase fivefold to $250 million. Ron Milby, GROWMARK Seed division manager, said this growth has come in the midst of huge changes in the industry. “A lot of crops used to be sprayed with technology, now the technology’s in the crop. That’s really what’s driving this change,” he said. To remain competitive in a changing market, GROWMARK expanded its seed lineup to include DeKalb, Asgrow, and NK brand seeds in addition to its proprietary FS Seed brand. GROWMARK also sold its corn and soybean production facilities and began outsourcing actual seed production in 2006 so the focus could remain on marketing. GROWMARK Seed division products are subject to at least four types of research. Dennis Garzonio, seed corn product manager, said a new
Second of a series product must endure two to four years of small-plot research before it makes it to strip plot trials. FS advancement trials also help evaluate new hybrids. The emphasis on local research means FS Seed is engineered to work perfectly in the Midwest. Whether it is an independent, university, or company trial, “We are very, very competitive,” said Garzonio. “Our performance has continued to improve.” The GROWMARK Seed division works hand in hand with the cooperative’s plant food and crop protection experts, as well as local crop specialists, to ensure a com-
Wabash Valley Service Co. receives environmental award Wabash Valley Service Co., Browns, received the 2009 National Environmental Respect Award, earlier this month in Washington, D.C. Wabash Valley won the national award based on excellence in site design, in-plant storage and handling procedures, proper application, and leadership in safety and stewardship among customers and employees. Wabash Valley’s operation spans 10 acres and includes the latest in physical plant design and technology. The cooperative provides extensive training for its 34 employees, and uses precision technology for site-specific application of agricultural inputs. The award is sponsored by CropLife magazine and DuPont Crop Protection. It is the agricultural industry’s highest recognition for environmental stewardship among U.S. agricultural retailers, suppliers of nutrients, pest control, and agronomic information and services.
plete package for producers. “The decision you make for your seed drives a lot of the rest of the agronomic decisions you are going to make,” said Rod Woelfel, manager of agronomy marketing and agronomic services. In the GROWMARK System, FS crop specialists are trained not only to sell seed, but also to create whole-farm cropping solutions that consider all aspects of crop production. “We offer a solutions approach; our local crop specialists understand the grower’s goals and values and tailor a package of products and services to make sure the best agronomic recommendations get put with the seed that we sell,” Woelfel said. Heather Miller is GROWMARK’s corporate communications intern. Her e-mail address is hmiller@growmark.com.
FarmWeek Page 6 Monday, July 20, 2009
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Generally good growing conditions again last week with rain on Tuesday night of between 0.75 and 1.5 inches. It is still cooler than normal and the wheat is drying out very slowly because of that. We probably will combine wheat this week. There was a lot of secondcrop hay made last week. We had some wind last Friday, July 10, strong enough to blow corn down. Some varieties stood the wind better than others. It is looking better already and may straighten up. Much of the earlyplanted corn tasseled out last week. Pete Tekampe, Grayslake, Lake County: A cool, dry week in Lake County. Got 0.6 of an inch of rain on Wednesday morning and by 2 p.m., there was dust flying again. Early corn looks good, but needs a lot of heat and time. Late corn is barely a foot high and needs a whole lot of help. Early beans look good, while late beans are short and not growing much in this cool weather. Winter wheat is almost ready and some should be cut this week. Spring greens are starting to turn. The forecast is for more cool and dry. I hope it is wrong. Leroy Getz, Savanna, Carroll County: Rain of 0.8 of an inch on July 10 and another 0.3 of an inch on July 15 totaled 1.1 inches for the week. More cornfields are showing tassels and silks. The cool weather, which was only at 54 degrees Friday morning, will be good for pollination. Soybeans are showing more blooms and are looking better everyday, but they are still on the short side. I know some soybeans were just planted on river bottom ground this past week. I will see how they come out later. Wheat and rye harvest are starting on the limited basis. Ron Frieders, Waterman, DeKalb County: Cooler-thannormal temperatures are slowing crop growth. Corn is getting closer to pollination, but hardly any fields have started tasseling yet. So far, disease and insect pressure are low. Soybeans are growing slowly, but steadily. Cool and moist conditions are favorable for wet mold. When beans starting setting pods, it will be very important to watch for this yield-robbing disease. Control is not cheap — about $25 per application, and two sprayings probably will be needed. Wheat is being harvested. I have heard 80to almost 100-bushels-per-acre yields with some test weight and moisture dockage. Larry Hummel, Dixon, Lee County: A forecasted high of 68 degrees for Friday and temperatures all week that couldn’t hardly make it into the 80s are not what this late-planted crop needs. Last week I reported that our first-planted corn was just starting to tassel. It doesn’t look much different a week later. The last of the corn we planted is about shoulder high and has a long way to go to reach maturity. We started wheat harvest on Tuesday. The test weight was right around 60 pounds and moisture just above 14 percent. Tuesday night we got rained out. By noon on Thursday, the moisture was back down to about 16 percent and the sun was shining. So, it seemed prudent to wait a few hours and let it dry out some more. At 5 p.m. a popup shower the size of a thimble dropped half an inch of rain on us. Maybe this week. Ken Reinhardt, Seaton, Mercer County: A couple more inches of rain since last week’s report. The rain total for the year is more than 30 inches, getting close to the normal yearly total. The Edwards River has flooded every month so far. What little wheat there is around has been cut. Oats are ripening. Corn is from brown silk down to waist high. Fungicide applications are starting on corn. Jacob Streitmatter, Princeville, Peoria County: More rain fell across the area. The past two rains have been below 1 inch each. Corn is finally growing and soybeans that are barely 6 inches tall are blooming. For most of the corn it will be awhile before it starts to tassel. Hopefully, we can get rains that are below 1 inch and not above 3 inches.
Tim Green, Wyoming, Stark County: It was a nice week in the mid-80s, but of course, it rained a couple of days. We could stop the rain for awhile and save it for the end of August. Crops are looking decent, but are really, really behind. Our beans are still pretty small and our cornfields haven’t shot a single tassel yet. The second-crop hay is getting put up. People are trying to get their last spraying done. There is a little bit of talk about the Japanese beetle starting to come in, so we are trying to keep an eye out for that. Ron Haase, Gilman, Iroquois County: On Wednesday we received 0.4 to 0.6 of an inch of rain. Then on Thursday night, we got another 0.6 of an inch to 1.3 inches. Most cornfields in the area are anywhere from the V-13 to the R-1 growth stage. Leaf diseases are appearing in corn. I responded by spraying fungicide on one of those fields Thursday night. Looking above cornfields locally shows that the compaction issues have not gone away. The interior of the field looks much different than the four or five rows next to the road. Area soybean fields are from the beginning bloom (R-1) to the full bloom growth stage (R-2). Local closing prices for July 16 were: nearby corn, $3.09; new-crop corn, $2.98; nearby soybeans, $10.23; new-crop soybeans, $8.63. Friday we took our boys to the Iroquois County Fair. Brian Schaumburg, Chenoa, McLean County: An inch of rain for the week is just what the doctor ordered, and crop prospects continue to improve. Fungicide was applied to corn planted April 25-26. More will be ready to spray by next Friday. Soybeans planted May 20 are in the R-2 stage. Japanese beetles are the only pest at present, but are not at economic thresholds. ACRE (average crop revenue election) decisions are getting easier with the collapse in prices: corn, $3.15; fall, $3; soybeans, $10.31; fall, $8.55; wheat, $4.38. Steve Ayers, Champaign, Champaign County: Friday morning’s temperatures were more like May than mid-July. After 0.8 of an inch of rain Wednesday, crop conditions look great as tasseling continues. Our crop reporting district has us with a 42-inch average corn height. Starting to see some yellowing in soybean fields. I have more pinging of Japanese beetles on my windshield, but they are causing minimal tassel clipping. Wheat harvest is finishing and baling continues. Double-cropping soybeans is a real roll of the dice as late as we are. Farmers are busy scouting, spraying, and mowing. Wilfred Dittmer, Quincy, Adams County: Crop conditions have not improved a whole lot since last report except some of the early cornfields are showing signs of more stress with the different-colored corn and the different heights in a lot of areas. Some early fields are tasseled and others are close behind. Soybeans are growing, but they have a long way to go and the calendar is July and not June. Still plenty to do with mowing etc. and it is almost fair time again. The rain gauge caught only 0.2 of an inch here for the week and we could use about 2 inches. Harry Schirding, Petersburg, Menard County: It had been dry until Tuesday when we received between 0.7 and 3-plus inches of rain. With adequate moisture for silk elongation and pollen shed, there are few problems to affect pollination. Several producers are applying fungicide to corn in an effort to control what appears to be an above-average infestation of gray leaf spot. Soybeans continue to develop normally without many problems, thanks to ideal weather conditions. Japanese beetles are affecting only localized areas, and few field crops have been treated. Harvesting of hay continues to be challenged by the weather. Corn nearby, $3.14, down 11 cents; soybeans nearby, $10.30, down 49 cents; corn for January, $3.06, down 8 cents; soybeans for January, $8.80.
Jimmy Ayers, Rochester, Sangamon County: This past week, we received a little more than an inch of rain in our area, but rain amounts varied all around. The pollination process on the earlier corn is coming along real well. It has been much cooler than normal, slowing crop growth. It was 58 degrees Friday morning. A second pass of chemicals is being sprayed on the beans and the beans have all canopied in the 15- and 30-inch rows. Spray planes were running last week. I’m not sure whether they were for fungicide or Japanese beetles. Beetles are hitting some areas pretty hard. As you drive around, you can hear them on the windshield. Some hay got put up in good shape, and some of it got a little bit wet. Markets don’t appear to be reflecting the crops in our area. There must be some good crops around the nation elsewhere. Doug Uphoff, Shelbyville, Shelby County: We had another 0.7 to 1 inch of rain. Some fungicide is being sprayed on corn, but I have not yet found enough gray leaf spot to warrant an application. Later-planted corn is a week from tasseling. Beans will need to be sprayed again in a couple weeks, and hay will need to be mowed. Rain for the month is anywhere from 3-plus inches in the northern part of county to 2 inches in the middle of the county. I am on the way to get an ankle X-rayed from a farm accident Thursday. Hopefully, it’s not broken! Corn and bean prices are still free-falling. A lot of grain is being delivered to Decatur as most farmers have given up hope for higher prices. David Schaal, St. Peter, Fayette County: Friday morning, the temperature was 61 degrees with another inch of rain in the gauge. Thursday night rain come with a lot of thunder and heavy lightning. It was another wet week here with a little more than 4 inches of rain in the gauge since last report. Places in the county had more with heavy rains on the morning of July 11. Usually in the middle of July we are begging for rain, but now we would like for Mother Nature to give us a little break. A lot of Roundup beans will need to be sprayed as soon as field conditions permit. The corn crop continues to grow, but sure needs warmer weather as do the soybeans that have two to three leaves. Our fair week was wet as usual. Only thing different is it wasn’t 100 degrees in the shade. Ted Kuebrich, Jerseyville, Jersey County: Jersey County Fair was in progress last week and one of the longest-standing traditions of fair week is that it rains. This year was no exception. On Wednesday, Jerseyville and the surrounding area received 4 inches of rain. The rest of the county averaged 1.5 to 4 inches. Early-planted crops are looking good and the later-planted crops are starting to grow and even out. Some of the late beans are a little slow getting started due to all the rain. There are fields in which the small beans are under water and drowned out. Cash corn, $3.32; new corn, $3.01; January corn, $3.12; cash beans, $10.12; new beans, $8.78; January beans, $8.95; July wheat, $4.23. Dan Meinhart, Montrose, Jasper County: Rains moved through the area on Saturday, July 11. Amounts varied from 0.5 of an inch to 3 inches. More rain moved through on Wednesday leaving another 0.5 of an inch to 3 inches. Showers returned again on Thursday night. Beans are still going into the ground, but there will be thousands of acres that will not be planted this year. Corn is still being sidedressed. Corn and beans are being sprayed where ground conditions permit. The corn is very uneven. The later-planted corn is showing extreme stress due to the wet weather. A warming trend is expected this week. Rick Corners, Centralia, Jefferson County: We had nearly 4 inches of rain last week. That makes more than 7 inches of rain already for this month — unheard of. A few tassels are starting to peek out of several cornfields. There are some really good-looking crops, and there are some really nasty-looking ones, also.
FarmWeek Page 7 Monday, July 20, 2009
CROPWATCHERS Dean Shields, Murphysboro, Jackson County: Mother Nature dumped 3 to 5 inches of rain on Jackson County this past week. The Big Muddy River that goes through Jackson County is out of its banks, and some guys are getting their corn and soybean fields flooded for the second and third time. The rest of crop is enjoying the water and the weather. It is growing well. The biggest problem with the corn crop is how much variance there is in its size. The same goes for the soybeans.There are little ones and big ones. The wheat field beans are above the stubble now and look pretty decent. We seem to be
having a problem killing the water hemp and the pig weed. On another note, the southern part of Jackson County has a lot of vineyards and orchards, and the peach and apple crops seem to be real good this year, as is the grape crop. Those fellows have done OK, I guess, so we’ll want to enjoy their products later on this year. Kevin Raber, Browns, Wabash County: It rained twice this past week, keeping the ground very moist. The corn looks good from the road, but you know those drowned out and stunted spots are still there, you just can’t see them anymore. The cool temperatures feel good, but the corn needs more growing degree days so it can play catch-up.
Ken Taake, Ullin, Pulaski County: We received another inch of rain on Saturday, July 11. It really soaked in and was very beneficial to our crops. Corn and beans are both growing very quickly. Even with the trying planting conditions and the poor stands, if the weather continues to be as good as it has been, we may get back to an average crop for the year. It will really be good after the difficult start we had. Some areas of the county didn’t get as much rain and they are starting to get pretty dry. It will really depend on weather from here on out. Reports received Friday morning.
Will cool temperatures help or hurt the corn crop? BY DANIEL GRANT Farmweek
Farmers may be wondering how the corn crop will fare now that temperatures for much of the first half of the month made it feel more like early autumn than midElwynn Taylor summer. High temperatures late last week reached only the 60s and 70s in many parts of the state, and
Surviving tough times
the temperature in Illinois the previous week (July 5-11) averaged just 72.5 degrees, 3.6 degrees below normal, according to the National Agricultural Statistics Service Springfield office. “We’re certainly paying attention to the cool temperatures,” said Elwynn Taylor, Iowa State University Extension climatologist. The mild weather generally will help the corn crop as long as the overnight temperature doesn’t dip below 48 degrees, he noted. “Years with record-high
yields in the Corn Belt tend to be years with cooler temperatures,” Taylor said. Crop development is behind in the eastern Corn Belt, but that apparently is more a function of late planting than a lack of growing degree days. Last week, just 11 percent of the corn crop was silking and 11 percent of soybeans were blooming in Illinois compared to averages of 57 and 51 percent, respectively. “Maturity happens at cooler temperatures,” Taylor said. “It’s nighttime temperatures that delay maturity.”
Taylor noted some portions of the Corn Belt are starting to dry out after a wet spring. But a lack of moisture in some areas is not a concern at this point. “It doesn’t matter if we have less moisture, as long as it doesn’t completely stop (raining),” he said. “The crop doesn’t require as much moisture at cooler temperatures.” The U.S. crops last week were rated six points higher for corn (71 percent) and seven points higher for soybeans (66 percent) in the good to excellent categories compared to the same time last year.
“Right now, the way things look with crop conditions, it says above trend-line yields for corn. I’m figuring 155 to 158 (bushels per acre) at the present time,” Taylor added. “For soybeans, it’s too early to tell, but the crop conditions are similar to corn so you’d expect a similar (yield) response until we know better.” The wildcard at this point is the threat of an extended harvest due to late maturity of the crops, which could make them more susceptible to damage from an early freeze
Young pork producers’ new facility all about efficiency Recent financial struggles in the pork industry have forced some farmers to cut back or exit the business. Last week, Tyson Foods unveiled plans to reduce its sow herd by 28 percent due to ongoing hardships. Meanwhile, Smithfield Foods previously reduced its sow herd by 10 percent and last month announced plans to scale it back another 3 percent. “The reality is we’ve got too many hogs and too much pork on the market right now,” said Ron Plain, ag economist at the University of Missouri. However, Plain believes that in the long term demand for pork will increase and prices should rebound as the world economy recovers from the current recession. That’s where Jared Higgerson, 28, and brothers, Aaron Link, 30, and Nathan Link, 23, of Knox County enter the picture. The three young hog producers recently formed a production partnership with The Maschhoffs of Carlyle, and last week celebrated the opening of two new 3,600-head wean-to-finish swine production facilities near Rio, which is north of Galesburg. “We started farming together a year and a half ago,” Higgerson said last week during an open house at the
new facility coordinated by the Illinois Pork Producers Association (IPPA). “We wanted to continue farming and raising hogs and figured this was the only way we could make that happen.” The partnership with The Maschhoffs, the largest family-owned pork production network in North America, according to IPPA, will help the young farmers reduce the risk of high feed costs and help ensure they can market their hogs at a profit. The new swine production system also will provide manure to fertilize about 600 acres per year for the Link and Higgerson families, who also farm about 2,000 crop acres. “It’s a sustainable cycle. They can apply the manure to grow more corn and beans, which they can feed to the hogs,” Tim Maiers, public relations director for IPPA, said of the new pork operation. “And it adds value to the local economy.” The pigs each year will consume about 147,000 bushels of corn. “All of the feed will be purchased locally,” Aaron Link said. “We also will be adding approximately $16,000 of tax revenue to the county.” The two facilities feature technological advancements such as wet/dry feeders that
reduce feed loss and tunnel ventilation which will improve the air flow and the overall health of the pigs, Higgerson noted. “The building has many technologically advanced features that increase the effi-
ciencies of raising pigs, but will also improve the welfare of the pigs,” he said. And efficiency will be critical to the survival of pork producers, according to Plain. “As technology generally keeps improving, the newer
facilities tend to operate with less disease” and more efficiently, the economist added. “Historically speaking, the older facilities tend to be the ones shut down” during difficult financial times, he said. — Daniel Grant
Knox County pork producers Aaron Link, left, and Jared Higgerson, center, discuss the efficiencies of their new swine production facilities with Richard Breckenridge, right, agriculture and rural affairs adviser with the Illinois Environmental Protection Agency (EPA), and Amber Cheung, an EPA intern, during an open house held last week at the farm north of Galesburg. (Photo by Daniel Grant)
FarmWeek Page 8 Monday, July 20, 2009
DEVELOPMENT
Annie’s Project activities focus on risk management Annie’s Project, a farm management program geared toward women, is offering a field day and class from 3 to 6 p.m. July 28 at the Farina Learning Center in Clay County. Annie’s Project — Education for Farm Women is a program designed to empower farm women to be more involved in their farm operations. In partnership with Monsanto, this special program will emphasize production risk management at no cost to participants. Monsanto’s mobile technology unit, a traveling exhibit, will be at the site along with Monsanto ag educators
who will teach participants about everything from the basics of plant growth to new technologies that are helping manage production risks. Questions will be welcomed at this program on corn and soybean production with a class of farm women and women landowners. “A team of instructors from business and educational institutions train women in the five areas of risk management,” said Ruth Hambleton, founder of Annie’s Project and retired University of Illinois Extension educator. “Our follow-up evaluations of the program for the last
four years showed that we do satisfactorially in human resources, financial, legal, and
wife and Monsanto public affairs director, Tami Craig Schilling, will be a part of
‘This is a good way for women to check out the program before signing up for a basic-level Annie’s Project.’ — Ruth Hambleton Annie’s Project founder
marketing areas, but production was at the bottom. We are pleased to strengthen this part of Annie’s Project curriculum by forming a partnership with Monsanto.” Southern Illinois farm
the program. Schilling, a native of Clay city, spent the first 15 years of her career in the field sales organization helping farm families use tools and technologies to
increase production. Far m women who previously have not taken an Annie’s Project course may attend the one-day session along with those who have, according to Hambleton. “This is a good way for women to check out the program before signing up for a basic-level Annie’s Project,” Hambleton said. Reservations are needed by July 27 for the evening meal. For reservations or information, contact Tammy Johnson at 314-213-1517. For information about upcoming Annie’s Projects, visit {www.extension.iastate.edu/ annie}.
Rural Development offers community development grants More than $6 million is available nationwide for community development in rural areas, Colleen Callahan, Illinois Rural Development director, announced last week. The application deadline is Sept. 24. Funded projects will help develop housing, community facilities, and community or economic opportunities. “The purpose of the program is to help communitybased development organizations as well as economically challenged communities attract and retain investments in rural communities,” Callahan said. Grant recipients often provide activities, such as entrepreneurship training and leadership development, to help business and community leaders expand the local economy and create jobs, she explained. Eligible applicants are public or private non-profit organizations, including faithbased and community organizations, which have been legally organized for at least three years and have experience working with local non-profit organizations and low-income communities. Recipients must match the grant dollar for dollar. Forprofit organizations are not eligible. Illinois applications must be received no later than 4 p.m. Sept. 24 in the Rural Development State Office, 2118 West Park Court, Suite A, Champaign, Ill., 61821. More information is available online at {edocket.access.gpo.gov} or by calling Karen Lee at 217-4036213.
FarmWeek Page 9 Monday, July 20, 2009
FROM THE COUNTIES
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UREAU — The Member Relations Task Force and the Extension office will sponsor three computer classes from 3 to 5 p.m. Tuesdays, Aug. 4, 11, and 18, at the Princeton High School computer lab. Computer basics, Microsoft Excel, and introduction to the Internet will be covered. Cost is $10 per class. Call the Farm Bureau office at 815-875-6468 by Tuesday, July 28, 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. ORD-IROQUOIS — A Viewpoint breakfast meeting will be at 7 a.m. Thursday at the Martinton elevator. • An ACRE (average crop revenue election) meeting will be at 7 p.m. Monday, July 27, at the Farm Bureau office. Doug Yoder, Illinois Farm Bureau senior director of marketing and risk management, will be the speaker. • A farm continuation seminar will be at 6:30 p.m. Monday, Aug. 3, at the Farm Bureau office. Dinner will be served. Call the Farm Bureau office at 815-265-4718 for reservations or more information. NOX — The Knox County 4-H Fair starts Friday and continues through Tuesday, July 28. Youth may enter the tractor and lawnmower driving contests at 11 a.m. Saturday. Ag Olympics will be at 3 p.m. Tuesday, July 28. Both events are sponsored by the Young Farmers. EE — Farm Bureau and the Lee County Fair Association will sponsor an American Red Cross blood drive from noon to 6 p.m. Thursday at the Lee County Fairgrounds during the 4-H fair. Call the Farm Bureau office at 815-857-3531 or email leecfb@comcast.net if you can volunteer or donate. Walk-ins are welcome. • Farm Bureau will sponsor a booth Thursday through Sunday at the Lee County 4-H Fair and Junior Show. Register to win one-day passes to Six Flags Great America. There will be daily Ag in the Classroom activities for children. • Lee, Carroll, and Whiteside County Farm Bureaus will sponsor a local government conference at 1 p.m. Thursday,
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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. Call the Farm Bureau office at 815857-3531 or e-mail leecfb@comcast.net for reservations or more information. • The Young Farmer Committee will sponsor a “Harvest for All” food drive which will kick off Thursday at the 4-H fair and continue through Aug. 8. Non-perishable food items may be dropped off at the Farm Bureau booth at the fair, the Farm Bureau office, or the Woodhaven Association main office. Call the Farm Bureau office at 815-857-3531 or email leecfb@comcast.net for more information. IVINGSTON — The Young Leaders will sponsor a pedal tractor pull at 5:30 p.m. Wednesday at the Livingston County Fair. Children may participate in different weight categories, and ribbons and prizes will be awarded to first through third place. Call the Farm Bureau office at 815-842-1103 for more information. • The Livingston County Farm Bureau Foundation will sponsor a booth in the Commercial Building at the county 4-H fair through Thursday. A silent auction and a fundraiser will be held. All money raised will go toward the Roger Naylor Scholarship. 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 Co. Call the Farm Bureau office 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 309663-6497 for more information.
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ONROE — Stop by the Farm Bureau booth through Thursday at the county fair to see if “You are Smarter than a 5th Grader about Agriculture.” Prizes will be awarded. • An ice cream social for members and their families will be at 7 p.m. Thursday, Aug. 6, at the county fairgrounds. A ventriloquist will provide the entertainment. EORIA — Farm Bureau will sponsor a bus trip Wednesday, Aug. 5, to tour John Deere, Moline. Cost is $30 and includes lunch at Ryan’s. Call the Farm Bureau office for more information. • A renewable energy breakfast meeting will be at 7:30 a.m. Friday, Aug. 7, at the Farm Bureau office. Bauer Power will give a presentation on solar, wind, and geothermal energy. Call the Farm Bureau office at 309686-7070 by Monday, Aug. 3, for reservations or more information. • Orders for Southern Illinois peaches are due by Friday, Aug. 7. Cost is $20 for a 25pound box. Peaches may be picked up at the Farm Bureau office Thursday, Aug. 13. Call the Farm Bureau office for more information.
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IATT — Farm Bureau will sponsor a rules of the road for truckers seminar at 8 a.m. Tuesday at the Farm Bureau office. Call the Farm Bureau office at 762-2128 for reservations or more information. • Farm Bureau will sponsor its annual member appreciation day at 4 p.m. Thursday, July 30, at the Forest Reserve 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. • Farm Bureau will sponsor a farm lease informational meeting at 8 a.m. Tuesday, Aug. 4, at the Farm Bureau office. Paul Marriman, Macon County Extension, will be the speaker. Call the Farm Bureau office at 762-2128 for reservations or more information. ANGAMON — A policy development “tailgate talk” will be at 5 p.m. Tuesday at the Farm Bureau office. Rich Guebert Jr., Illinois Farm Bureau vice president, will start the meeting with a policy issue update. Call the Farm
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Bureau office at 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 815772-2165 by Tuesday, July 28, for reservations or more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county manager.
FarmWeek Page 10 Monday, July 20, 2009
COMMODITIES
U.S. meat exports expected to recover BY DANIEL GRANT FarmWeek
Poor economic conditions around the world and the H1N1 flu outbreak took a collective bite out of U.S. meat exports in May. Exports of U.S. pork for the month declined 27 percent in volume, shipments of fresh/frozen chicken declined 10.3 percent, and beef exports were 4.8 percent lower compared to the same time last year, based on USDA export figures released last week. “Last year was a great year as we had a record amount of pork exports,” said Ron Plain, ag economist at the University of Missouri. “That is a factor (why current export totals look
bad) but they’re still pretty disappointing numbers.” The decline in pork exports
FarmWeekNow.com Listen to comments from Ron Plain about how the lack of meat exports are hurting producers at FarmWeekNow.com.
increased the domestic supply by about 3.4 percent, Plain noted. The situation contributed to mounting losses for pork producers despite the fact retail prices last month were up 2.1 cents per pound compared to a year ago. “It is most likely the loss of exports rather than the loss of demand that has caused the price weakness (at the farm lev-
el),” said Chris Hurt, ag economist at Purdue University. Overall, pork exports the first five months of the year were down just 4 percent compared to last year’s record volume while beef exports actually increased 1 percent in volume but decreased 3 percent in value due to lower prices. “The international market is holding up pretty well, although it could be doing better,” said Philip Seng, president and CEO of the U.S. Meat Export Federation (USMEF). The U.S. still has market access issues, particularly for beef in Asia, he noted. Meanwhile, Russia has not reinstated any of the 30-plus U.S. pork plants it delisted, which is “a problem that has severely limited the flow of exports over the past several months,” according to USMEF. Seng believes U.S. meat exports will improve as market access issues are resolved. Plain also projected meat exports will increase as the world economy recovers from the current recession. Lower feed costs due to large crop production estimates in the U.S. also should help livestock producers on the cost side, Plain said. “The farther we go into the future, the better I feel about export prospects,” he added.
Monsanto set for restart of biotech wheat program BY MARTIN ROSS FarmWeek
Monsanto is getting back into the GMO wheat business — a move of potentially global significance. After dropping biotech wheat development in 2004 amid industry concerns, the St. Louis company announced last week it was expanding its seed/trait portfolio to include wheat. The company has acquired ‘We’re not going the assets of WestBred LLC, a to hold back any Montana-based company that specializes in wheat germplasm, technology from and hopes to incorporate being considdrought-, disease- and pest-tolered.’ erance traits into wheat varieties — a move applauded by the National Association of Wheat — Deborah Delmer Growers (NAWG). BREAD Where six years ago, millers and other processors and marketers were worried about global reaction to GMO wheat, U.S., Canada, and Australia wheat industry groups agreed recently to “work toward the goal of synchronized commercialization of biotech traits in the wheat crop.” NAWG noted “the research challenges facing wheat are well known, as is the importance of this crop to world food supplies.” Catherine Bertini, co-chair of the Chicago Council on Global Affairs’ Global Agricultural Development Project and former United Nations World Food Program director, sees promising if “very slow movement” toward biotech acceptance, especially in Africa. Brazil, China, and India have “have had large successes” with biotech production, though Bertini noted some continued African concerns about marketability of GMO-produced foods in Europe. But software billionaire Bill Gates, who is providing major support for Basic Research to Enable Agricultural Development (BREAD), a new program aimed at fostering innovative strategies for the world’s small farmers, “is very strong on pushing new technology,” she stressed. Deborah Delmer National Science Foundation program director for BREAD, told FarmWeek, “We’re not going to hold back any technology from being considered,” including biotechnology.
Egg producers ready for new FDA regulations The Food and Drug Administration (FDA) apparently believes cooler eggs prevail when it comes to food safety. FDA recently unveiled regulations that require eggs to be refrigerated at 45 degrees 36 hours after being laid. Egg producers with 3,000 or more laying hens also will be required to test their poul-
try houses for the salmonella bacterium and to implement rodent and pest biosecurity practices to prevent the spread of salmonella on farms. FDA expects the new regulations will reduce the number of salmonella enteritidis infections obtained from eggs by 60 percent and prevent 30 deaths each year (the estimates of reduced illnesses were
based on statistical modeling and not on a count of actual illnesses). Farmers generally applauded the measures to enhance egg safety. Many producers already test for salmonella and have biosecurity programs on their farms, according to Howard Magwire, vice president of government relations for the United Egg Produc-
Grape harvest workshop geared toward growers and vintners A workshop on harvesting quality grapes will run from 9:30 a.m. to 1 p.m. Aug. 1 at the Village Vineyard and Winery, northeast of Quincy in Adams County. Participants will receive hands-on experience working with special equipment used to measure and determine grape ripeness. In addition to vineyard sampling of different grape varieties and other fruit, winemaker participants are invited to bring samples for analysis. The workshop is sponsored by the Illinois Grape Growers and Vintners Association, Rend Lake College’s viticulture and enology science and technology alliance, University of Illinois
Extension, and the Illinois Department of Agriculture. The registration fee is $25. Reservations are needed by July 31 for an accurate meal count. To register, e-mail Gordon Cantrell at chsbb32@adams.net or contact Elizabeth Wahle at 618-692-9434 or at wahle@uiuc.edu. Participants are encouraged to dress for weather conditions because part of the workshop will be conducted in the vineyard. They also are encouraged to bring their own equipment, such as pruners, refractometer and/or portable pH meter, gloves, and work boots. All testing equipment will be supplied.
ers/United Egg Association. “We’ve always supported the concept of regulations for egg safety,” Magwire told FarmWeek. “Many of the things in these rules have long been implemented.” Keith Mussman, a farmer from Kankakee County who has 400,000 egg-laying chickens, said on a “Conversations on Animal Care” video posted on YouTube that his operation maintains its eggs at the required 45 degrees from the time they are put in the cartons. He also screens employees as part of a biosecurity program. “We really feel, even though production agriculture is huge (compared to chicken coops of the past), our food is safer,” Mussman said on the video. In fact, a recent poll of egg producers around the country found that 100 percent already have a strong biosecurity program and 90 percent routinely test for salmonella, Magwire reported.
Many of the eggs not tested for salmonella are sold for breaking purposes, which means the eggs are pasteurized, he noted. Producers who pasteurize their eggs will not be required to uphold the tighter regulations but must adopt the new refrigeration rules. Members of the United Egg Producers, who generally support the new regulations, do have some concerns, however. Eggs that are stored at cooler temperatures prior to shipment to processing plants could develop thermal cracks during processing, which would be counterproductive to food safety, Magwire said. Meanwhile, increased refrigeration will create a larger carbon footprint, boost electricity use, and ultimately increase onfarm costs by an estimated one to two cents per dozen eggs. “We’re trying to set up a meeting with FDA” to discuss the concerns, Magwire said. — Daniel Grant
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FARM BUREAU IN ACTION OIL COLLECTION
Farm Bureau DVD puts the know in trailer towing BY KAY SHIPMAN FarmWeek
The Rushville-Industr y FFA and the Schuyler County Farm Bureau participated recently in a used oil collect i o n a t t h e Tw o R i v e r s F S i n R u s h v i l l e a n d C a m den. There were approximately 1,900 gallons of used oil collected for recycling by Future Environmental Inc. This collection was a fundraiser for the FFA’s leadership programs and the Schuyler County Farm Bureau’s Scholarship Foundation. Pictured, left to right, are Jared Prather, Schuyler County Farm Bureau president; Kent Prather; Keaton Dyche; Dalton Shepherd; Randy Powell from Future Environmental; and FFA adviser Morris McClelland. (Photo submitted by Schuyler County Farm Bureau manager Kelly Westlake)
Kane County farmers join fight against local hunger BY RYAN KLASSY
More than a dozen local farms have stepped up to help restock the shelves of local food pantries through the Kane County Farm Bureau’s (KCFB) “Harvest for ALL” campaign. This new program was developed to encourage local farmers, mem-
bers, and consumers to join in the effort to provide relief to the hungry in Kane County. Through the program, farmers are being asked to donate the harvest of an acre of land, or a set number of bushels, to benefit a local food pantry. This summer and fall, the proceeds from the harvest of the designated crops will be donated to the food pantry of the farmer’s choice. “So far the participation by local producers has been fantastic,” says Kane County Farm Bureau President Bob Gehrke. “There are a lot of people in need right here in Kane County, and the support the program has received from local farmers shows that they recognize that need and are ready to step up to help.” According to the Northern Illinois Food Bank in St. Charles, more than 39,000 Kane
County residents live below the poverty line. Statewide, one in every 11 people do not have regular access to enough safe, nutritious food for an active and healthy life. Gehrke, who donated an acre of his 2009 hay crop, estimates that farmers have pledged $6,000-$7,000 in corn, soybeans, wheat, and hay sales to the program. The effort will be recognized at a number of field locations throughout the county to encourage Kane County residents to join in the effort. Non-farmers may contribute a taxdeductible donation to the KCFB Foundation to be put toward the Harvest for ALL campaign and designate a local food pantry of their choice to receive the proceeds. KCFB Young Farmers Chairman Dale Pitstick said he hopes the good start to the program is all the encouragement folks will need to get on board. “We are serious about making hunger relief a priority in 2009, and we hope the public will join in,” said Pitstick. In 2008, members of the Young Farmers Committee were recognized by the Illinois Farm Bureau with an award for their hunger relief efforts. For more information about the program, go to {www.kanecfb.com} and click on the Harvest for ALL link at the top of the page. Ryan Klassy is information director for the Kane County Farm Bureau. He can be reached at 630584-8660.
A new Farm Bureau DVD dealing with livestock trailer questions fills a need to provide safety information to new trailer owners. “I’ve seen a lot of unsafe practices (with trailers). People need to be aware of the risks and safety procedures before hauling their horses,” said Lois Guyon, a retired Illinois State University professor and former chairman of the Illinois Equine Industry Research and Promotion Board. Guyon and her horse, Spirit, appear in the “Know Before You Tow” DVD and in the cover photo with her friend, Ruth Fennick, and Fennick’s horse, Bernie. Illinois Farm Bureau’s Jim Fraley, livestock program director, and Jim Polus, IFB senior audio visual producer, developed a script, which was reviewed by the Illinois Equine Roundtable. Information covered on the 11-minute DVD includes how to select the correct combination of trailer and truck, Fraley said. The DVD discusses benefits and drawbacks of different types of bumper and gooseneck-style hitches. Viewers also learn how to properly hitch a trailer to a vehicle, to do a safety inspection, and to back up a trailer, Fraley said. Information covered includes how to tie a quickrelease knot and to safely load and operate a trailer with animals. On the IFB website
{www.ilfb.org}, web browers will find contact information for additional resources for topics covered in “Know Before You Tow.” Each county Farm Bureau has received a supply of DVDs, which are available at no charge by simply requesting a copy from the local county Farm Bureau, Fraley said. Guyon, who Fraley credited with the idea to create the DVD, taught herself how to load and haul a horse trailer by reading a couple of books. “There’s very little information available about trailering,” she added. “I think the Farm Bureau is doing a tremendous service providing information to the equine (owning) public,” Guyon said.
TALKING CLIMATE
Illinois Farm Bureau President Philip Nelson, in Washington, D.C., for an American Farm Bureau Federation Board of Directors meeting last week, met with both Illinois U.S. Senate offices to express concern over global climate change proposals being considered by the Senate. Here, Sen. Roland Burris makes a point. (Photo courtesy of Senator Burris’ office)
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CONSERVATION DCEO prepares rules for energy conservation grants BY KAY SHIPMAN FarmWeek
The Department of Commerce and Economic Opportunity (DCEO) soon will release rules for a new energy grant program, according to Carol Kulek with DCEO’s bureau of energy and recycling. At a recent Illinois Rural Affairs Council meeting, Kulek reported $13 million will be available in the Energy Efficiency and Conservation Block Grants program. The rules are expected to be finished by mid-August. DCEO will work with the Illinois Association of Regional Councils to assist communities with populations of less than 35,000 residents, according to Kulek. Block grants are to be used to help local governments reduce energy usage and use energy efficient technology. Types of projects may include energy efficient lighting, heating, and cooling.
Another program of energy incentives, known as the Illinois Energy Efficiency Portfolio Standard (EEPS), are available to customers of ComEd or Ameren Illinois utilities, Kulek added. Local governments, public schools, community colleges, public universities and colleges, public safety, water, and park districts in ComEd and Ameren Illinois service territories may apply to DECO for funds. The funding may be used for a variety of improvements, such as electric system efficiency improvements for lighting, cooling, and traffic signals. Kulek encouraged local governments and other eligible entities to consider combining the upcoming block grants with the EEPs incentives. “We want them to leverage those dollars as much as they can,” Kulek said. For information, visit {www.illinoisenergy.org}.
CTIC offers Illinois farmers special conservation tour Illinois farmers are being offered a special registration rate for the conservation in action tour Wednesday, July 29, around Western Illinois. The registration deadline is Friday. The Conservation Technology Information Center (CTIC), West Lafayette, Ind., is sponsoring the tour, which includes local farms. Tour participants will learn how farmers manage nutrients in no-till and strip-till systems, reduce nutrient input costs, protect water quality with nutrient management programs, improve soil for higher yields and sequestered carbon, research nitrogen use, and apply soil survey techniques. Participants also will hear
about Monsanto’s corn and soybean trait pipeline, John Deere’s new high-speed nutrient applicator, and the Case IH side-dress fertilizer applicator. The tour will start in Moline at 7:30 a.m. and travel to Aledo, Keithsburg, Biggsville, Kirkwood, Roseville, and the Monsanto Learning Center in Monmouth. To receive the special $25 registration rate, farmers must call CTIC at 765-494-9555. The special rate is not available online. Lodging is in the Radisson on John Deere Commons in Moline. A special nightly rate for tour participants will be offered for available rooms. The Radisson number for reservations is 309-764-1000.
Land planning conference taps U.S. experts The Illinois Conference on Agricultural Land Use and Planning Conference will be Aug. 6 at the Oak Ridge Golf Club, near LaSalle. Advance reservations are required by July 30. The program’s focus on tools, planning, and preservation in a transitioning economy is designed to help farmers, landowners, local officials, and agency staffs consider planning issues that impact farmland, agriculture, and neighboring communities. Registration will start at 8:30 a.m. with the program to begin at 9 a.m. The keynote address will be given by Jon Scholl, president of the American Farmland Trust. Scholl will give a national perspective on farmland and land use planning. From 2004 to 2008, Scholl served as counselor to the U.S. Environmental Protection Agency administrator for agricultural policy. He led development of the agency’s first national agricultural strategy and its first ag advisory committee. Another speaker will be Tom Daniels, University of Pennsylvania professor of city and regional planning. He is one of the country’s leading experts in farmland preservation and land-use planning in urban-rural fringe areas that are being developed. Kevin Rund, Illinois Farm Bureau senior director of local government, will discuss farmland as a natural resource. The registration fee is $48.50. Registration may be done online at {webs.extension.uiuc.edu/registration/? RegistrationID=2958} or by contacting the University of Illinois Extension Rockford Center at 815-395-5710. For an agenda and directions, visit {web.extension.uiuc.edu/rockfordce nter/downloads/18045.pdf}. The conference is sponsored by U of I Extension, with American Farmland Trust, the Association of Illinois Soil and Water Conservation Districts, the Illinois Soil and Water Conservation Society, and the Chicago Metropolitan Agency for Planning.
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PROFITABILITY
Economic outlook: green shoots or dandelions? BY JIM CHARLESWORTH
The world economy is on pace to contract in 2009 for the first time in more than 60 years. Developed countries have led the global economic downturn. The highly integrated world markets have provided a conduit to Jim Charlesworth rapidly transmit recessionary pressures throughout the global economy. Global gross domestic product (GDP) growth for 2009 is expected to decrease about 2.5 percent. In 2010, the global economy is forecast to grow at a positive 2.6 percent, slightly below the historical yearly average (see chart). All major economic powers have slowed significantly. However, economic growth
in most developing countries remains relatively strong but growth is hampered by reduced export demand. For example, China’s growth this year will slow to slightly more than 6 percent, supported by massive stimulus spending. As the largest world economy, the United States officially entered a recession in Decem-
ber 2007. The contraction has been severe — especially since mid-2008 — and the economy has continued to weaken during the first half of 2009. The eye of the storm has passed, but the economy still faces strong headwinds. Collapse of the housing market was the primary catalyst for the downturn. Easy
credit and lax lending standards fueled the speculative bubble. The financial sector was hard hit by declining asset values, creating counter-party risk that froze credit markets and aggravated asset deflation due to aggressive deleveraging. Declining household wealth has caused a sharp pull-back in consumer and business spending. The recent pace of job losses has been the largest since the Great Depression. Extremely aggressive fiscal and monetary stimulus is necessary. However, massive federal deficits raise fear of inflation, higher interest rates, and burdensome tax policy for decades to come. Modest economic recovery could begin in late 2009, but economic growth will remain sluggish — below 2 percent through next year. There are some positive economic indicators begging to sprout.
The U.S. economy contracted sharply in the first three months of this year, but not as sharply as originally thought. Final first quarter figures for the real GDP reflected a negative 5.4 percent annualized. That’s a rather sobering figure but significantly less than the negative 6.1 percent estimated one month earlier. The latest economic job reports continue to suggest that a recovery, although slow and modest, is in the offering. Job losses continue but at a gradual, reduced rate. Additional economic data are showing positive direction, including: historically low borrowing rates, tame inflation, an uptick in personal income and consumption, and productivity growth. Jim Charlesworth is GROWMARK’s marketing research director. His e-mail address is jcharlesworth@growmark.com.
Time may be right to book summer fill of propane BY DANIEL GRANT FarmWeek
Farmers and homeowners who use propane may want to consider booking their summer fill sooner rather than later. Prices in recent weeks dropped to attractive levels due in part to an increased supply and decreased demand for propane, according to Chris Salrin, propane product manager for GROWMARK. “Right now these are
probably some of the better buys relative to where we’ve seen prices the past couple years,” Salrin told FarmWeek. Propane prices in the summer typically trade at about 65 to 70 percent the value of crude oil, in terms of value per gallon. But recently propane prices as a percentage of crude dipped to 46 percent. The situation impacted the Midwest in particular where
M A R K Feeder E T pigFA CTS prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $29.57-$33.79 $32.22 $26.00-$31.00 $27.53 n/a n/a This Week Last Week 26,161 26,003 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $56.26 $55.12 $41.63 $40.79
Change 1.14 0.84
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week n/a 81.00
Prv. week 81.58 81.46
Change -0.46
Lamb prices Confirmed lamb and sheep sales This week 886 Last week 873 Last year 718 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $100-$101.75; 110-130 lbs., $103.75. Good and Choice 1-2: 60-90 lbs., $105. Slaughter Ewes: Utility and Good 1-3: $25-$28. Cull and Utility 1-2: $25.
Export inspections (Million bushels)
Week ending Soybeans Wheat 07-09-09 10.9 9.6 07-02-09 14.7 15.1 Last year 9.6 25.2 Season total 1157.3 75.3 Previous season total 1047.2 114.6 USDA projected total 1210 980 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Corn 38.8 34.3 28.6 1456.4 2067.8 1700
additional production essentially is on hold due to decreased demand. Propane
prices, and Salrin looks for an uptick in crude prices in coming months.
higher.” USDA also recently forecast one of the largest U.S. corn
‘I see crude prices moving higher later this summer and into fall.’ — Chris Salrin GROWMARK propane product manager
supplies down south also have blocked Midwest product out of the Gulf Coast market. “The mid-continent supply is trapped,” Salrin said last week. “It’s trading below 50 percent of the value of crude oil.” Propane stocks on July 3 reached 62.096 million barrels compared to 51.3 million barrels at the end of May and 44 million barrels the previous year, according to the Energy Information Administration. The number of days of supply of propane in the past month subsequently skyrocketed from 57.3 on June 12 to 77.5 on July 3 (see graphic). “Additional production came on line the past six to 12 months,” Salrin said. Salrin doesn’t expect the large supply and decreased propane prices to last throughout the year, though. In fact, propane prices could increase by late summer or early fall as demand picks up, he noted. Propane prices also typically follow crude oil
“I see crude prices moving higher later this summer and into fall — $75-plus (per barrel) is quite reasonable” as an estimate, he said. “As a result, propane prices likely will go
crops on record (12.3 billion bushels). If the large crop is realized, propane demand could increase if an active season of grain drying is necessary.
FarmWeek Page 15 Monday, July 20, 2009
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Crop maturity lags Even though growing conditions are beneficial for the new crops, they could present problems at the end if the growing season ends even in a relatively normal time. Amid the price weakness this last week, the lag in maturity and potential ramifications was starting to be noted by the grain trade. Nationally, this year’s corn crop is only slightly ahead of last year’s development pace. What is surprising is that progress in the northwestern/western Corn Belt states is not much better than the national one. And planting was relatively timely in that region. Only 6 percent of the Iowa crop was silking by July 12, slightly ahead of last year’s 1 percent, but behind the 16 percent average. It was most advanced in the west-central and southwestern parts of the state.
Basis charts
In Minnesota, only 1 percent was silking, behind both last year’s 2 percent and the 15 percent average. Nebraska is ahead of last year and close to normal. South Dakota is behind, but the planting pace there lagged because of wet conditions. In addition, the latest forecasts call for normal or coolerthan-normal temperatures through the end of July. While that eliminates stress, it puts development further behind. Last year, the late plantings were “bailed out” by a laterthan-normal end to the growing season. The first frost/freezes were as much as two to three weeks later than normal in some locations. That allowed later-maturing crops to add dry matter to seeds for an extended period, slightly boosting yield potential. The crop ratings have some analysts talking about corn yields rising from the current USDA estimate, 153.4 bushels per acre. But if development lags, a normal end to the season could cut short seed filling, offsetting part of the impact of the stress-free summer. An early end would have a more negative impact. There’s uncertainty about soybean yields, too. The current estimate, 42.6 bushels, is close to 2005’s 43-bushel record. At this point, there may be more risk of the yield going down than going up. Amid this, we see USDA potentially projecting good yields in the August report because it’s primarily a population count. It’s the subsequent ones with which we are concerned. AgriVisor endorses crop insurance by
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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 make needed oldcrop sales. At some point, December futures should move back into the $3.50$3.75 range. If storage is available, it may pay to carry some inventory past harvest. ✓2009 crop: Technically, corn prices are heavily oversold. We should at least see a moderately good rebound in the next few weeks. This also may be a year in which postharvest prices are even stronger yet. Hold off making new-crop sales. We may recommend needed harvest sales only on the rebound we expect over the next few weeks. ❖Fundamentals: Current weather is nearly ideal for the crop to go through pollination, although the cool temps further delay a crop that’s already well behind normal. Longer term, corn prices are becoming cheap relative to other commodities, including some it competes with directly or indirectly. That should help bolster demand.
Soybean Strategy ✓2008 crop: With the soybean market in a window for a key cycle low, don’t panic and make sales on weakness. Higher prices will come, but the levels we had been thinking may be out of reach. Use rallies to $10.25 to sell inventories you still own. ✓2009 crop: New-crop prices have fallen to a level at which there should be little downside risk. However, it may be difficult for prices to return to reasonable levels again, unless a shock to the market triggers exceptional strength. We may end up carrying more than we’d like into post harvest, but we think it will pay to store soybeans unless the cost is exceptionally high. If you need to price soybeans, wait to see if November futures can move back to $9.50 before making sales. ❖Fundamentals: Confirmation that China is going to offer some government stocks
to the market shook up the trade even though prices were well above the cost of imported soybeans. Their crushers continue to book sales. Mild weather is bolstering production ideas for the U.S. crop.
Wheat Strategy ✓2009 crop: Action in subsequent days hints the recent $5.12 low on Chicago September may have been a good short-term low. However, to confirm the trend has shifted higher, it needs to close above the 50-day moving average, currently at $5.95. Continue to hold off additional new-crop
sales; we anticipate better pricing opportunities in late summer/early fall. But, if your sales lag recommendations, use rallies near $5.50 on Chicago September to get caught up. ❖Fundamentals: Weather steadily continues to cut into world supplies, sometimes directly, sometimes indirectly. Argentina is expected to plant 2.75 million hectares of wheat, down 40 percent from last year. El Nino could cut into Australian output next winter. A poor start to the Indian monsoon season could cut into that country’s rice crop.
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PERSPECTIVES
4-H helps build character in youth Editor’s note: In the midst of county fair season, it’s important to note the true rewards aren’t ribbons or trophies but memories that last a lifetime. This column is specific to one county but applies in the other 101 counties in which adults help young people learn by doing.
Meth problem is back In the past couple months in my travels around Illinois and even at a meeting in Florida, I heard from law enforcement everywhere that meth is back. I was shocked because of all the money and education that has gone into locking these people up and showing people what meth does to them physically. As you may remember, this drug came from the West Coast as they all seem to do. The first we saw of it was when Missouri passed a bunch of good laws and ran the manufacture of meth out of the GIB hills in Missouri into the CADY southern parts of Illinois. Illinois reacted with our own laws, and law enforcement made numerous arrests and filled up our jails with the people who made this stuff. Today, the people who were in jail from the first round are now out of prison, still addicted, and still making the drug to get high. There are a couple of differences but not many. It’s still cheap, it still has the same chemical needs and reactions in the manufacture as before, and it still can turn a human body into a hideous form of disgusting humanity. As time goes past, there are more pictures of how pretty girls and handsome boys turn into old women and skinny old men with no teeth because they fall out. The outer body skin develops numerous sores that break open and bleed and cause scratching. Don’t forget this stuff is the most addictive drug there is. With meth, one try and you can be gone the same as if you caught a large-caliber bullet between the eyes. With the serious increase in traffic, we have to re-educate all of agriculture about anhydrous and its necessity to make methamphetamine. I think the drive to make anhydrous useless for making meth stopped when use of the drug declined and because Mexico was making it so cheap that users began going there for their fixes. So, now we’re back to worrying about anhydrous and those people who use the old recipes to make meth.
Today’s group of meth makers has developed ways of using new products and forcing more of those products to be stored behind the store counter so you must sign to purchase them. Remember when we told you to watch for someone buying large quantities of batteries or pseudoephedrine, or when you found those packages of those items open and discarded somewhere to let us know? Today that list includes items bought in auto parts stores — such things as brake fluid and starting fluid. Because there is so much profit in the illegal drug business and because we in the U.S. are the world’s biggest drug users, another scheme to get the products to make the stuff has been developed by the manufacturing people here and in Mexico. It’s called, “smurfing.” Smurfing is when someone solicits people who really need money — homeless people, addicts, unemployed people, or those looking for a quick dollar — and get them to go from store to store buying the drug-making ingredients needed and keeping the drug maker’s name out of the public records. The National Drug Intelligence Center now says there is more methamphetamine-making products getting into Mexico by smurfing than by any other means. Another major ingredient available from farm stores, pharmacies, or retail stores is iodine tincture. We don’t have any control on tincture, just crystals, and that is only if 0.4 of kilogram or more is purchased during a two-month period. All this profit is fueling drug wars. Homeland Security gives me, at least once a week, the body count in Mexico of the people who opposed the drug powers. Recently our drug investigators found and arrested drug criminals from Chicago who were using our quiet rural roads to hide and serve as pickup points of large quantities of drugs that were being transported across the country. It is not uncommon to come into my jail in the morning and find all the new people brought in overnight were meth arrests. Have I got your attention yet? Gib Cady is the sheriff of Henry County and chairman of the Illinois Sheriff ’s Association. His e-mail address is gcady@henrycty.com.
Does a specific memory come to mind when someone mentions the word “4-H?” Helen Swaar of Mason City is flooded with memories. “I was a 4-H member, but the thing that jumps out for me is that our own family was so involved in 4-H when the girls were growing up,” she remembers. “Our lives revolved around that and school.” Helen notes the good memories were not restricted to her alone. Those days in 4-H were “one of the happiest times” for her children who made deep and lasting friendships. The memories are many for Helen, but one MATT story, in particular, comes to mind when she MONTGOMERY thinks of her own family’s experience in 4-H. “It was our daughter’s last year in 4-H at the fair,” she began, “and a little girl was selected to go to the State Fair in her project with our daughter selected to be the alternate.” “The parent of that little girl came up to us,” she continued, as her voice began to crack. They said their family wanted our daughter to go instead of theirs because it was her last year. “That is the essence of what 4-H teaches you. It’s not that you are always first — it’s that you are always your best. It teaches you responsibility.” Are such 4-H experiences a thing of the past? Can stories like that be part of the experience for today’s youth? Helen thinks her experience can be shared by others and that today’s youth can only benefit from the 4-H experience. “I think about science projects and how that can start a child down a path to enjoy science. I think about a young lady who enjoyed cooking and that is what she does today,” stated this former 4-H parent. For Helen Swaar, though, it always comes back to character: “You are a winner because you are doing” in 4-H. Opportunities, education, friendships, and character development are the pillars of the 4-H program. If you are interested in making those stories your own or if you are interested in making those stories possible for others, contact your county Extension office and find out how you can help. Matt Montgomery is the county director of University of Illinois Extension in Mason County. He can be e-mailed at mason_co@extension.uiuc.edu.
Oh, all the things he would see ... but not until the chores were done.