FarmWeek Sept. 6 2010 by Illinois Farm Bureau

A NEW STATE LAW will regulate not only large cemeteries but also some small rural ones overseen by volunteers. .........................3

T H E O I L I N D U S T RY i s arguing nine requirements must be met before the ethanol blend level can be raised to 15 percent. ..........4

THE WHEAT SEED supply in the state is tight, and producers are being advised to place orders or get on waiting lists. .........................8

Monday, September 6, 2010

Two sections Volume 38, No. 36

Overall break preferred over conditional ‘carve-out’ BY MARTIN ROSS FarmWeek

Amid growing awareness of the acute threat a revised estate tax poses for farm families, Washington lawmakers appear more sympathetic toward ag “death tax” relief.

But Illinois Farm Bureau national legislative director Adam Nielsen argues comprehensive estate tax relief is preferable to a Senate-proposed farm family “carve-out” based on a number of specific eligibility criteria and removing producer flexibility in managing family assets. If Congress fails to act, the estate tax will return Jan. 31 at pre-2002 levels, including a $1 million individual exemption and a high 55 percent tax rate.

IFB next week will launch a phone campaign aimed at rallying support for a new $5 million individual/$10 millionper-couple exemption from estate tax liability and a 35 percent upper rate. Senate Ag Chairman Blanche Lincoln (D-Ark.) and Sen. Jon Kyl (R-Ariz.) back the measure; IFB’s campaign seeks support from Democrat Sens. Dick Durbin of Springfield and Roland Burris of Chicago. At the same time, Sen. Dianne Feinstein (D-Calif.) is sponsoring the Family Farm Estate Tax Deferral Act, which would defer family taxes as long as a farm is passed on to an individual or relative who has been “materially engaged” in its management and operation for at least five years and the heir or heirs continue to use land for farming purposes. Further, under her proposal, a farm must have generated more than 50 percent of the owner’s income or accounted for more than 50 percent of the estate at the time of death. The decedent must have owned the farm for at least five of the eight years prior to his or her death, and the decedent’s farm-related income

over the three years prior to death cannot have exceeded $750,000 annually. A “recapture” tax would be owed if land subsequently were sold outside the family or no longer used for production. Beyond setting stringent eligibility rules that could preclude relief for the producerheirs of a retired or semiretired farmer, Nielsen suggests the Feinstein bill essen-

tially would impose a “permanent easement” on heirs. Among other things, the measure would penalize farm heirs who sell selected holdings to recapitalize operations. “It really reduces landowner flexibility,” Nielsen said. “These are the kinds of bills that complicate things and don’t solve the problem. “This is a way for those who support continuation of

the estate tax in some form to try to address the concerns of farmers, but it doesn’t get at the principle of the estate tax’s unfairness or achieve our objective of avoiding the tax altogether.” The Lincoln-Kyl bill would serve not only farmers but also “the other small businesses that are so essential to a healthy rural economy,” he said.

HARVEST AT SUNSET

Dan McKinney of rural Fairfield in Wayne County was working on his first 20-acre field of corn as the sun set last week. Corn in the field had an average moisture content of 18 percent, and McKinney estimated the field would yield 135 bushels per acre. He said that would be about average for the ground he and his brother, Kelly, farm. An update on harvest activity is on page 7. (Photo by Ken Kashian)

Periodicals: Time Valued

Mexican truck ban deemed ag trade threat U.S. pork producers are among the latest victims of a prolonged — and escalating — U.S.-Mexican dispute. Illinois corn growers and others fear a continued standoff could jeopardize their southof-the-border markets, as well. As Congress returns to the Hill, the National Pork Producers Council (NPPC) will lobby for a solution to a U.S. ban on incoming Mexican truck shipments that has sparked retaliation against a number of U.S. ag goods. In August, Mexico imposed new import tariffs on pork, cheeses, pistachios, and a range of vegetables and fruits. Under the North American Free Trade Agreement (NAFTA), Mexican carriers are

allowed to bring cargo into the U.S. In 2007, the U.S. Department of Transportation (USDOT) announced a pilot project allowing a limited number of trucks to haul loads more than 25 miles into the U.S. However, in March 2009, Congress failed to renew funding for the program, sparking a NAFTA violation ruling against the U.S. and limited retaliation against some U.S. products. As the dispute neared its first anniversary, Transportation Secretary Ray LaHood pledged to develop a plan to address the issue, but NPPC spokesman Dave Warner said pork was added to the retaliation list “to make it a little more painful” after a plan

FarmWeek on the web: FarmWeekNow.com

failed to materialize. While NPPC will seek congressional pressure for administration action, Warner told FarmWeek “Congress has been the holdup, too,” threatening to withhold funding for any project that would bring truckers over the border. Other commodity groups are concerned U.S. inaction could threaten their Mexican sales, as well. NAFTA eliminated Mexican tariffs on U.S. ag goods, and in 2009, the U.S. exported 503,000-plus metric tons of pork worth more than $762 million to Mexico, making it U.S. pork producers’ No. 2 market. Mexico also is a key market for Midwest yellow corn, largely

railed through Texas. “Twenty-five percent of the corn Mexico uses comes from that State of Illinois,” Illinois Corn Marketing Board valueenhanced project director Philip Thornton noted. “This could be very important to us — it’s a very important market.” While the trucking standoff is snarled in border security politics, Illinois Farm Bureau national legislative director Adam Nielsen sees it feeding a potentially larger problem for U.S. exporters — continued trust in U.S. compliance with key trade agreements. “How can we expect others to comply if we’re not complying?” Nielsen posed. — Martin Ross

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

FarmWeek Page 2 Monday, September 6, 2010

PRODUCTION

Quick Takes FARM TALK CHAT SURPRISE! SUMMER WARM, WET — The climatological summer (June through August) was one of the warmest and wettest on record in Illinois, based on preliminary data. The statewide average summer temperature (76.4 degrees) was 2.7 degrees above normal, which made it the seventh warmest on record. The average rainfall in Illinois for the summer (16.7 inches) was 5.2 inches above normal, which ranked this summer as the sixth wettest on record, the Illinois State Water Survey reported. August conditions were extremely warm (with an average temperature of 76.8 degrees, 3.2 degrees above normal) but a touch on the dry side with average rainfall of 3.4 inches. 0.3 of an inch below normal. Some areas of the state were much drier. The National Weather Service predicted an increased chance of above-normal temperatures and a neutral outlook for precipitation this month. SLOW WORK ON FAST TRAINS — High-speed rail trains won’t be spotted in downstate Illinois for another four years, but the state and the Union Pacific Railroad are starting to spend some of the billion dollars set aside to bring high-speed rail to the Midwest, according to the Illinois Statehouse News. Crews soon will begin upgrading the tracks on the line between Alton to just south of Springfield. Last week, officials with the Illinois De par tment of Transpor tation (IDOT) and Union Pacific explained the impact for communities along that line. IDOT’s George Weber said most motorists will notice only some rail crossing closures. Crews are expected to finish in the Springfield area by the end of the year or early next spring, Weber said. “The goal is that by 2012, we’ll likely have a segment between Dwight and Pontiac in operation for trains at 110 miles per hour,” Weber said. Some local officials expressed concerns about crossing closures causing problems for harvest traffic trying to reach elevators. USDA CONSERVATION LOANS AVAILABLE — USDA has launched a conservation loan program that will provide farm owners and farm-related businesses credit for practices they implement to conserve natural resources. The money can be used for practices approved by the Natural Resources Conservation Service. Examples include installation of conservation structures and water conservation measures, establishment of or improvement of permanent pastures, and implementation of manure management. Direct conservation loans may be obtained through local Farm Service Agency (FSA) offices with loan limits up to $300,000. Guaranteed conservation loans up to a maximum of $1.112 million are available from lenders working with FSA.

(ISSN0197-6680) Vol. 38 No. 36 September 6, 2010 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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

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

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

Illinois Farm Bureau President Philip Nelson, right, chats with Clay County Farm Bureau board members Kevin Logan, left, Edgewood, who also serves as the county supervisor of assessments, and Gerald Dennis, Louisville, following a Farm Talk meeting on the Joe Thoele farm in Effingham County. Last week concluded the series of five Farm Talk meetings attended by Nelson and Vice President Rich Guebert Jr. Discussion topics included the need for congressional action on the estate tax, the state’s fiscal situation, the Illinois Farm Bureau Farm Policy Task Force’s work, and the farmer image campaign. (Photo by Chris Magnuson)

Risk management simpler with ‘combo’ coverages? BY MARTIN ROSS FarmWeek

USDA’s Risk Management Agency (RMA) introduced new Common Crop Insurance Policies — popularly called “combo” coverages — this month for wheat producers, rolling existing yield and revenue policies into three basic new products. Combined coverages will be available to Illinois corn, soybean, grain sorghum, and barley growers next spring. Under policy restructuring, crop revenue coverage (CRC) and revenue assurance (RA) with a fall harvest price option have been melded into a new revenue protection policy. A second revenue protection policy with a harvest price exclusion absorbs existing RA coverage without the fall harvest price option and income protection (IP). At the same time, actual production history coverage — also known as multi-peril crop insurance (MPCI) — and basic catastrophic crop insurance have FarmWeekNow.com been converted Learn more about the new into a single “ c o m b o ” c r o p i n s u r a n c e yield protection policies for 2010-2011 at product. County-based group FarmWeekNow.com. risk plan (GRP) and group risk income protection policies (GRIP) policies also will remain available. Country Financial crop marketing consultant John Fahl sees new offerings making risk management much simpler. IP sales have been low in Illinois, but beyond consolidating policies, the new program uses the same crop base price for both yield and revenue protections (the APH guarantee price previously was released prior to revenue base price) and expands unit coverage options under yield policies. “You’re always somewhat skeptical when you hear big changes are coming, but I think they (RMA) did make this simpler,” Fahl told FarmWeek. “It’s simpler for everybody to understand, especially producers. There are fewer options; it does limit choices. But I think (RMA) did a good thing here.” Country financial representatives and crop specialists have been fully trained in new policies, which are available for 2011 wheat growers.

Prospective wheat producers must purchase coverage by Sept. 30, and announcement of the wheat base price, the basis for revenue guarantees and 2011 crop year premiums, is expected by Sept. 14. The impact of policy consolidation on premiums is not yet clear, but Fahl noted indications that policy pricing under new revenue protection likely will track more closely with RA and thus may run slightly higher than CRC premiums had

‘There are fewer options; it does limit choices. But I think (RMA) did a good thing here.’ — John Fahl Country Financial

in most counties. Federal premium subsidies will remain the same. Where previously producers who sought the choice of a revenue price guarantee tied to base or harvest price were required to take an RA harvest price election, those who do not now must actively select the harvest price exclusion. Policy harvest price is capped at 200 percent of base price. The new revenue policy will use a single revenue harvest price for spring-planted crops. CRC used an October harvest price; RA a November price — “I’ve never seen any analysis in March able to tell you which price is better,” Illinois Farm Bureau risk specialist Doug Yoder said. Yoder recommends revenue coverage for farmers “who are trying to do a better job of marketing their grain.” Growers who favor more basic yield protection will see one key change under policy conversion: A new option to cover “enterprise” units, or all acres of an individual crop within a county. Fahl sees enterprise coverage as an increasingly “attractive” option vs. basic unit coverage, which includes all tracts an individual owns and/or cash rent within a county. The new insurance plan also makes it easier for revenue policyholders to qualify for enterprise unit coverage, he said.

FarmWeek Page 3 Monday, September 6, 2010

STATE

Some rural cemeteries may fall under new state law BY KAY SHIPMAN FarmWeek

A new state law will regulate not only large cemeteries but also small rural ones overseen by volunteers — if the cemetery has money of any amount in a care fund, according to the Illinois Cemetery and Funeral Home Association (ICFHA). The Cemetery Oversight Act was signed into law in January by Gov. Pat

FarmWeekNow.com You can download a chart of recent changes to the state’s Cemetery Oversight Act at FarmWeekNow.com.

Quinn. The law sets up new licensing and insurance requirements and fees; however, the implementation rules, including those that would establish licensing procedures and fee amounts, have not yet been adopted.

‘If they (cemeteries) hold a care fund of any size, they’re regulated, and that’s scary.’ — Vickie Hand Illinois Cemertery and Funeral Home Association

The law stipulates which cemeteries are entirely or partially exempt from the regulations. But any cemetery with a care fund must comply with all the rules, and that situation is catching many rural cemeteries, Vickie Hand of ICFHA told FarmWeek last week. “If they (cemeteries) hold a care fund of any size, they’re regulated, and that’s scary,” Hand said. “There are a lot of (cemetery) people who think they’re exempted ... We’ve pushed to explain (to legislators) all cemeteries

are not the same.” A chart outlining the law’s provisions and full and partial exemptions is posted on {www.FarmWeekNow.com} and has been sent to county Farm Bureau offices. The new provisions include licensing of cemetery authorities and managers, establishment of an oversight database, mandatory reports, and required maintenance and records. Anyone who has a supervisory role at a regulated cemetery or “significantly interacts” with consumers will have to

be licensed by the state, according to ICFHA. The law exempts cemeteries that are defined as family burial grounds; inactive cemeteries — ones with no care funds and no burials in the last 10 years; and small cemeteries — those less than two acres in size and without care funds. “Right now the law is in effect,” Hand noted. But until the legislative Joint Committee on Administrative Rules (JCAR) approves the rules, cemetery authorities won’t know exactly what they will be expected to do or how much they will have to pay in fees, Hand added. She encouraged cemetery authorities to consider joining ICFHA, which informs members about new rules and any regulatory changes. The website is {www.icfha.org} and the telephone number is 866-758-7731.

East-Central Illinois selected Interim ACES dean to fill job permanently for federal broadband funds Bob Hauser, who has of ACES’ agricultural ecoHauser’s appointment, East-Central Illinois came up a big winner last week with $12 million in USDA broadband funding that will build highspeed infrastructure in the area. Federal and state officials announced the combination of federal grants and loans, state funds, and private investment during a press conference in Danville. Gov. Pat Quinn called the nearly $24 million public-private project “an information super highway.” “We don’t want a (digital) divide with some people having very good Internet (services) . . . and some left way behind,” Quinn said. Cellular Properties, based in Danville, received a $6 million grant and a $6 million loan from USDA to bring third generation (3G) wireless network technology to Clay, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Jasper, Lawrence, Richland, and Vermilion counties. In addition to the USDA Rural Development money, the project funding includes $1 million from the Illinois Jobs Now public works program, ‘ We d o n ’ t wa n t a which is administered by the (digital) divide with Illinois Department of and Economic some people hav- Commerce Opportunity, and about $11 ing ver y good In- million from Cellular Propter net (ser vices) erties. “These broadband pro... and some left jects will give rural commuway behind.’ nities access to the tools they need to create jobs, — Gov. Pat Quinn stimulate local economies, and build a foundation for future prosperity,” said Colleen Callahan, USDA Rural Development state director. Seven Illinois projects have received awards in the last two months, Callahan noted. Illinois broadband projects that recently received USDA funding include: • Delta Communications LLC, based in Harrisburg, was awarded a $31.5 million grant. Through this project, Delta’s Clearwave Communications will deploy a high-speed network across a 23-county region of Southern Illinois, and • Utopian Wireless Corporation received $783,000 to provide 4G portable/mobile broadband access to rural communities in and around Bushnell in McDonough County and Flora in Clay County. The U.S. Department of Commerce also recently announced nearly $62 million will be awarded to the Illinois Department of Central Management Services to offer affordable broadband service in Northeastern, Central, and Southern Illinois. — Kay Shipman

served as interim dean of the College of Agricultural, Consumer, and Environmental Sciences (ACES), will become the permanent dean, pending approval by the University of Illinois Board of Trustees this month. The U of I announced Hauser’s permanent appointment last week. Hauser, an agricultural economist, had served as interim dean since July 2009 when Robert Easter moved on to serve as the U of I’s interim provost and then later as its interim chancellor. Hauser had served as head

nomics department before he

assumed the interim dean post. In a letter announcing

Richard Wheeler, interim vice chancellor for academic affairs, noted Hauser’s permanent appointment was supported by ACES department heads, associate deans, and faculty. “I, too, have been impressed by, and grateful for, his forceful advocacy for the college of ACES and his dedicated service to the campus,” Wheeler wrote. Hauser joined the U of I faculty in 1982. He earned a bachelor’s degree and a doctorate from Iowa State University.

Southern Illinois hospital receives $3 million Gov. Pat Quinn recently announced a now-closed hospital in White County would receive $3 million in capital funding to restore and open the facility by August 2012. The refurbished hospital in Carmi is expected to employ about 160 medical personnel and support staff. The project will be administered by the Phoenix Foun-

dation of Southern Illinois and is funded through the Illinois Jobs Now capital construction program. After the hospital closed in December 2005, area residents have had to drive 32 miles to the nearest hospital in McLeansboro. An area study revealed the average time between a 9-1-1 call and transportation to the

nearest medical facility ranged from 32 to 116 minutes. In addition to new electrical wiring and repairs, the facility will be equipped with new environmental control systems, a security system, an alarm system, and backup systems to maintain hospital utilities during power outages.

Exelon buys Deere’s wind energy business Chicago-based Exelon Corp. announced last week it will buy Deere & Co.’s wind energy business, John Deere Renewables, for about $900 million. Exelon will acquire Deere’s 36 completed wind energy projects with a total capacity of 735 megawatts of wind energy (enough to power 160,000 to 200,000 homes) in eight states. The deal is expected to be completed by the end of the year. As part of the sale, Exelon also may continue to develop 1,468 megawatts of new Deere wind energy projects that are in different stages of development.

Before this sale, Exelon already was the largest wholesale marketer of wind energy east of the Mississippi River with 352 megawatts of wind power capacity from five wind projects in Illinois, Pennsylvania, and West Virginia. Exelon Power also owns and operates a 10-megawatt solar plant in Chicago, the largest urban solar plant in the country, and is the nation’s largest U.S. nuclear power generator. Deere said the sale will allow it to pursue what it does best, manufacturing farm equipment.

FarmWeek Page 4 Monday, September 6, 2010

GOVERNMENT

Oil industry report ‘slick’ effort to delay E15? BY MARTIN ROSS FarmWeek

A “disingenuous” petroleum industry report ignores the extensive groundwork already being laid in preparation of federal approval for higher ethanol blends. A new American Petroleum Industry (API) study concludes “multiple regulatory and legal requirements remain and must be met before higher ethanol blends can be legally marketed.” The U.S. Environmental Protection Agency (EPA) is considering an industry request to boost maximum

conventional ethanol gasoline blend levels beyond a current 10 percent. Amid reports EPA is eyeing a two-tiered blend waiver allowing 15 percent blend (E15) use only in later-model vehicles, key ethanol producers support interim E12 approval until all data needed to affirm E15 safety and performance are in. API’s report argues nine requirements must be met before the blend level can be raised to 15 percent, including federal E15 fuel registration and changes to EPA reformulated gasoline and gasoline detergent additive regulations.

“Well, none of that’s new: We’ve known about all those things for quite some time, and we’ve been working on them, as well,” national Renewable Fuels Association (RFA) CEO Bob Dinneen told FarmWeek. “But the fact that not all those things are done yet is no reason for EPA not to move forward. “API is really being slick, to be kind, in suggesting EPA should wait until some of these other things are done. In some forums where we’re working to get things done, they’re saying, ‘You shouldn’t do this,

because EPA has yet to approve the waiver,’” Dinneen said. RFA has been working with oil companies, fuel detergent manufacturers, state fire marshals charged with assuring retail fuel equipment safety, and ASTM International, as it develops industry E15 fuel specifications. “Expanding beyond E10” is crucial to growing new ethanol feedstocks and technologies, along with extending a federal 45-cent-per-gallon ethanol blenders tax credit set to expire Dec. 31, Dinneen said. Hopes had been fading

for a major 2010 energy package that could serve as a vehicle for congressional renewal of the tax break. But Thursday’s explosion at an oil-and-gas rig in the Gulf revived calls for energy reforms. “Absent an energy bill that may be on the rise depending on people’s view of this latest incident in the Gulf, I think vehicles to move a tax extension are going to be difficult to find,” Dinneen advised. “I do believe, however, that something with a tax title will have to get to the president’s desk.”

Could egg recalls spur renewed food safety debate? Livestock producers fear concerns over the recent egg recall could prove bad for the industry as a whole. In the wake of a 22-state salmonella outbreak, the U.S. House Energy and Commerce Committee has asked Iowa’s Wright County Egg and Hillandale Farms — the egg companies linked to the outbreak — to submit documents on their safety practices dating back more than five years. Wright County Egg has announced recalls of 380 million-plus eggs since Aug. 13, while Hillandale Farms issued a 170-million-egg

recall on Aug. 19. The egg controversy reportedly could move food safety legislation ahead on the fall Senate agenda, with Senate Majority Leader Harry Reid (D-Nev.) under increased pressure to bring it to the floor for a September vote. The House recently passed its FDA Food Safety Modernization Act, but Rep. Rosa DeLauro (D-Conn.), who chairs the House Food and Drug Administration (FDA)/USDA appropriations subcommittee and supports a single federal food safety agency, is now seeking infor-

FDA probe casts doubt about activist claims As federal inspectors noted a prevalence of manure, rodent droppings, and maggots spread by uncaged hens at two Iowa egg farms last week, Farm Bureau argued for the relative safety benefits of modern poultry production methods. In light of a recent salmonella outbreak traced to Iowa’s Wright County Eggs and Hillandale Farms, Humane Society of the U.S. President Wayne Pacelle urged consumers to “shun battery cage eggs in favor of cage-free eggs instead.” However, the U.S. Food and Drug Administration (FDA) cited as a cause of the problem “uncaged hens tracking manure” at the Iowa operations. Michael Taylor, FDA deputy commissioner for food, said his agency does not believe hens tracking manure is “indicative of practices throughout the industry.” Veterinarian-approved cage systems have been shown to improve hen health, reduce diseases, and improve overall food safety, according to American Farm Bureau Federation’s (AFBF) Kelli Ludlum. In a cage system, she noted: • Birds are off the ground and separated from waste. • Producers control the birds’ food, water, and air. • Sick birds can be identified easily and isolated to control the spread of disease. • Access to hen houses is controlled, reducing or eliminating the threat from predators. • Trucks and equipment can be sanitized before coming into contact with the birds. AFBF noted salmonella “can occur and has occurred,” as recently as two years ago on free-range chicken farms. This summer’s recall of roughly a half-billion eggs affects a mere 1 percent of the total 70 billion U.S. eggs produced annually, the organization stressed.

mation about the outbreak from the agencies. The Energy/Commerce oversight subcommittee has scheduled a Sept. 14 hearing focusing on the egg incident. American Farm Bureau Federation (AFBF) policy calls for immediate action by USDA and FDA to raise the priority of and resources for federal safety/inspection services, but AFBF has not yet taken a position on the Senate bill. While House and Senate bills focus on FDA jurisdiction, livestock groups including the National Pork Producers Council (NPPC) are concerned largely about the debate’s impact on future USDA Food Safety Inspection Service (FSIS) legislation. “If, in fact, the salmonella were the result of chicken feed contamination, that would be a concern,” NPPC spokesman Dave Warner told FarmWeek. “FDA does get to regulate feed, so if you grind your own feed on your farm, FDA could be able to regulate that a little more. “And while (current legislation) doesn’t affect us directly, if (lawmakers) do FSIS reform ... one of the things that would be likely to carry over into FSIS reform is mandatory recall. We’ve had a voluntary recall system; it has worked. I think it’s worked in this case.” Under Springfield Democrat Sen. Dick Durbin’s food safety proposal, FDA would have mandatory recall authority if a company refused to voluntarily recall a product for which “there is a reasonable probability” of contamination or an undeclared food allergen and the product’s consumption could cause “serious adverse health consequences or death.”

The House proposes a twotiered recall system. FDA could order voluntary recall of a suspect product subject to an informal hearing within five days, or could issue an emergency recall if it has “credible evidence” the product poses an imminent threat of serious illness or death, with a hearing scheduled within five days after the product is withdrawn. Both Senate and House bills would allow FDA to assess recall fees — the Senate against companies that refuse to comply with a mandatory order; the House against all

companies subject to a recall. Warner argued food companies are in a better position to assess health or safety risks in plants and thus could more reliably issue a product recall. Warner noted the estimated $100 million in economic damage incurred by Southeast producers as a result of FDA’s 2008 advisory warning raw tomatoes could be unsafe — a conclusion later found to be erroneous. Farm Bureau supports an indemnification program to compensate producers for losses resulting from erroneous federal advisories or recalls. — Martin Ross

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See what you can do with your talent… while making the most of your time! The ACTION TEAMs are made up of volunteers who – in only two days – turn their unique ideas and experiences into a year of activities and amazing results. Whether you’re an experienced leader or new to Farm Bureau, we want you to bring it!

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s 1UALITY OF ,IFE s 0UBLIC 2ELATIONS s -EMBERSHIP s %DUCATION

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FarmWeek Page 5 Monday, September 6, 2010

MARKETS

Are variable storage rates the answer to crop basis issues? BY DANIEL GRANT FarmWeek

At first glance, it appears a policy change recently enacted by the Chicago-based CME Group was a great success in improving convergence performance in the wheat market. CME Group in July switched from a fixed storage rate to a variable storage rate for wheat. The change was approved last November. And cash wheat prices during harvest, which ranged from $4.73 to $4.96 per bushel in Southern Illinois the first week of July, were near or above the futures price of

$4.87, according to Darrel Good, University of Illinois Extension ag economist. This convergence of prices is a sharp contrast to recent years. Cash wheat prices in Illinois last year slipped to more than $1 below the futures price and as much as $2 below the futures price in 2008. â&#x20AC;&#x153;It (the wheat basis in Illinois) has improved dramatically,â&#x20AC;? said Jeff Hainline, chairman of Advance Trading, who also is a member of the National Grain and Feed Associationâ&#x20AC;&#x2122;s risk management committee and the Commodity Futures Trading Commis-

Proposed GIPSA rule key source of concern for livestock producers The comments were lively when USDA and the Department of Justice (DOJ) held the fourth of five public hearings recently to discuss competition issues and explore the role for antitrust and regulatory enforcement in the ag industry. The hearing, held in Fort Collins, Colo., was designed to focus on concentration in the meat industry. But many of the estimated 1,300 livestock producers in attendance took the opportunity to voice their concerns about a federal rule on livestock marketing proposed by the USDA Grain, Inspection, Packers, and Stockyards Administration (GIPSA). The new rule, ostensibly designed to improve market fairness, proposes limiting exclusive arrangements between packers and dealers, improving market transparency by making sample contracts available to the public, and prohibiting packers from purchasing, acquiring, or receiving livestock from other packers. â&#x20AC;&#x153;Given the consolidation that has taken place in the livestock industry over the past decades, it is critical to ensure a fair market still exists to give all players an honest chance at success,â&#x20AC;? said Ag Secretary Tom Vilsack at the hearing. However, members of the livestock industry are concerned the new GIPSA rules could cause buyers to withdraw marketing arrangements that are advantageous to producers, create confidentiality issues, and actually encourage increased consolidation in the industry rather than create more opportunities for producers. Sam Carney, president of the National Pork Producers Council, believes the GIPSA rule would limit his ability to sell hogs. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a solution in search of a problem,â&#x20AC;? he said. â&#x20AC;&#x153;The markets work, and we donâ&#x20AC;&#x2122;t need the government trying to fix it.â&#x20AC;? Tara Smith, policy specialist with the American Farm Bureau Federation, also questioned the need for increased regulations when there seems to be a lack of evidence of any widespread abuse in the marketplace. Proposed new federal livestock rules should not pre-empt potential marketing innovation and efficiencies, she said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not sure what kind of bad behavior (USDA) is trying to stop with this rule,â&#x20AC;? the policy specialist told FarmWeek. â&#x20AC;&#x153;In the meantime, our fear is theyâ&#x20AC;&#x2122;re doing damage to a lot of the marketing arrangements and marketing opportunities our farmers have.â&#x20AC;? The comment period on the GIPSA rule ends Nov. 22. USDA and DOJ will hold the fifth and final workshop of the series Dec. 8 in Washington, D.C. The focus there will be margins and specifically the discrepancies between prices received by farmers and the prices paid by consumers. â&#x20AC;&#x201D; Daniel Grant

sion (CFTC) subcommittee on convergence. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m very satisfied the contract change CME Group implemented is responsible and has allowed all players access.â&#x20AC;? The Kansas City Board of Trade reportedly is considering a similar change in storage rates. Basis levels out west during wheat harvest were 50 to 80 cents below traditional levels in early July, according to Hainline. Doug Yoder, Illinois Farm Bureau senior director of marketing and risk management who also serves on the CFTC subcommittee, agreed the

change in storage rates appears to have improved the performance of the wheat contract. â&#x20AC;&#x153;The variable storage rate began with the July contract and convergence performance that month was much improved,â&#x20AC;? he said. However, itâ&#x20AC;&#x2122;s too early to declare the problems solved when it comes to issues with basis levels, Yoder noted. The CFTC subcommittee currently is monitoring the performance of the wheat contract before it recommends any other changes, such as implementing variable storage rates

in corn or soybean contracts. â&#x20AC;&#x153;Analysis needs to be done to see if it worked,â&#x20AC;? Yoder said. â&#x20AC;&#x153;It could take months.â&#x20AC;? Meanwhile, the subcommittee down the road may consider promoting more drastic actions, recommended by some in the industry, such as switching the delivery mechanism from the Illinois River to the lower Mississippi River, which is closer to export markets, or using a cash settlement index. The IFB Profitability Advisory Team will re-examine the issue this week during a meeting in Bloomington.

Crop acres projected to increase in 2011 U.S. farmers are poised to boost plantings of corn, soybeans, and wheat in 2011, according to a survey released last week at the Farm Progress Show in Boone, Iowa. Farm Futuresâ&#x20AC;&#x2122; first survey of new-crop acreage intentions for next year found farmers were rather optimistic because of prospects for improved prices. The survey found corn acres next year could increase 2 percent to 89.5 million. If realized, it be the second-largest corn crop planted since World War II. Soybean acreage in 2011 was projected to reach a record-high 79.6 million acres. That would be the third consecutive record acreage total for soybeans.

And winter wheat seedings are expected to rebound by more than 10 percent to 41.7 million acres after plummeting 13 percent last year due to row-crop harvest delays and wet fall conditions. Arlan Suderman, market analyst with Farm Futures, noted the acreage survey conducted in late-July and early-August coincided with a big rally in the futures market triggered by the Russian drought. â&#x20AC;&#x153;Producers were very mesmerized by the run in futures, which provided them incentive to plant as much winter wheat as possible this fall,â&#x20AC;? Suderman said. Farm Futures surveyed more than 550 farmers nationwide for the acreage estimates.

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FarmWeek Page 6 Monday, September 6, 2010

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had a generally mild week with hot, muggy days mixed in with some cooler days. We did have two brief rain showers last Tuesday (Aug. 31) and Thursday, but only about 0.1 of an inch each time. The bean leaves are starting to turn color with only the earliest starting to drop leaves. The corn also is turning color faster each week and starting to dry down. We are starting to hear about low test weights in the early-maturing corn. Apparently the hot summer nights were detrimental to the natural grain fill process. Time will tell about the results of this concern.

Ron Moore, Roseville, Warren County: We received 1.8 inches of rain last week. We finished chopping silage. The corn was disappointing. I estimate the yield at about 16 tons per acre instead of the normal 20 tons per acre. Lots of short corn due to wet conditions in May and June. Some corn has been harvested in my county. I have heard the moisture was in the upper teens. No one is saying what the yield was. That leads me to suspect it was less than anticipated. My goal is to start corn harvest after Labor Day. It doesn’t look like many soybeans leaves have started to turn yellow yet. It will be late September or early October before we harvest any soybeans.

Pete Tekampe, Grayslake, Lake County: Got 1.8 inches of rain last Thursday. It was needed for the late corn and beans. The early corn is turning fast and so are the early beans. We probably will be able to combine beans in three weeks. That’s very early for us. A lot of second- and third-cutting hay was baled this past week. It was 60 degrees Friday morning, but temperatures are expected to be in the mid-80s for much of this week. That should move the crops even faster.

Jacob Streitmatter, Princeville, Peoria County: Another week that started off hot and dry, but finished with a little rain to settle the dust. So far, I have received a little more than an inch, but more is expected. The rain came too late to help the corn, but should help the soybeans, especially my July soybeans. A few combines have rolled out of the shed this past week. I have not heard any reliable yield data. We harvested a few acres of corn (because of road work) and it was 39.6 percent. I had to pay enough for drying last year; I hope this year it is a little drier.

Leroy Getz, Savanna, Carroll County: Rain last Wednesday and Thursday totaled 0.5 of an inch. Chopping corn silage is complete in this area. Some haymaking continues. Corn harvest may start this week. All varieties I have checked have black layered. Field drying has been good. Soybeans vary from green to brown where sudden death syndrome is present. Growing degree units totaled 2,707, which is about 400 above average. Ron Frieders, Waterman, DeKalb County: After three weeks of hot and dry weather, a storm last Thursday evening left 1 inch of rain. Lots of harvest talk and preparations are under way. Some early corn will be harvested soon. Soybeans are maturing. A few fields are completely yellow; however, most fields are just starting to turn. If you can get away for a nice afternoon, the Sandwich Fair opens Wednesday. Lots to see and do with good food and beautiful fairgrounds. Larry Hummel, Dixon, Lee County: Seed corn is the only thing being harvested here. With it being this early in the season and the large amount of money that was spent drying last year’s crop, it looks like everyone is content to let Mother Nature do the drying. Some handshelled corn was testing in the mid- to low 20s with test weights between 52 and 53 pounds. Some late-season diseases have moved into the cornfields. I don’t see them making much of an impact on yields, but they could effect stalk strength as harvest continues. Soybeans are probably close to two weeks away from harvest. Patches of sudden death started showing up in soybean fields three weeks ago and have been growing in size since then. The first field of soybeans I planted are on some ground that has been in corn almost as long as I can remember. They just started to yellow up naturally last week (no sudden death). I’m sure the three weeks will make a huge impact when it comes time to tally up the yields. Ken Reinhardt, Seaton, Mercer County: I had close to 3 inches of rain for the week. I heard of some corn har vest in the Bay Island drainage district. There would have been more if it hadn’t rained. Everyone is hoping for a fast harvest this year. One of my employees suggested that we get done before it snows this year. We could have done a good History Channel show, icy roads, snowy fields, harvest with all of last winter’s escapades.

Tim Green, Wyoming, Stark County: Woke up Friday morning to a nice 1.5 inches of rain through the night. That kind of helps finish off our later-planted beans. Corn harvest seems to be picking up just a little bit. I think it will pick up quite a bit after the Labor Day holiday. Yields so far are a little disappointing overall. The moisture seems to be coming down. I’ve heard guys picking corn in the 17 to 19 percent range and speeding the process up a little bit. No beans have been harvested yet. Beans still look pretty green around here. I think we’ll probably get into them in a week or two, but corn harvest will really pick up after the holiday and things will get cooking. Have a safe fall. Mark Kerber, Chatsworth, Livingston County: Now that we are completely ready to start harvest, a rain event has delayed us. We received 1.5 inches of rain. That will help the green soybeans and settle the dust. Also, fall tillage should work much better. Those who started in the corn are witnessing much lower yields than last year. Yield reports range from a 100 to 190. Most yields probably will fall into the 140-170 range. I totaled up summer’s rains: June had about 7.5 inches, and July was less than 1 inch. Not a good scenario for raising bumper crops. We needed the rain amounts turned around. Cropwatchers meet a lot of good people around the State of Illinois in a year’s time. I would like to say hello to George Nadoski in Southern Illinois. With lower yields and strong demand, markets are rising. Maybe the lows are in and basis levels will absorb harvest pressure. We’ll see. Ron Haase, Gilman, Iroquois County: On Thursday, we received a range of 1.3 to 1.7 inches of rain on our farms. There were a few farmers who started harvesting corn last week. The local elevator received some corn on Aug. 31 — the earliest it had received corn in recent history. The previous record was Sept. 10, 2007. Our corn ranges from 25 to 40 percent moisture. I heard that cornfields that were harvested varied from 16 to 21 percent moisture. Yields on the corn that has been harvested have been quite a bit lower than last year. Most soybean fields are in the R7 growth stage with a few getting close to R8 or full maturity. The late-planted, replanted, and full-season varieties are in the R6 growth stage. The beginning of soybean harvest is close to 10 days off. The local closing prices for Sept. 2 were $4.04 for nearby corn, $4.31 for January corn, $10.07 for nearby soybeans, and $9.80 for new-crop soybeans. This past week we enjoyed hosting two tour groups from Brazil for a farm visit and explanation about Farm Bureau. They came to attend the Farm Progress Show and tour U.S. agriculture.

Brian Schaumburg, Chenoa, McLean County: One to 3 inches of rain fell late last week relieving fears of field fires and helping late beans fill pods. Corn harvest started with disappointing corn yields, especially on continuous corn. The yield monitor ranged from 80 to 220, but field averages will hopefully be 140-180. Not too optimistic about final results. Stalk quality is fair, kernel size is small, but test weight is good, so far. Corn, $4.07, $4.22; soybeans, $10.09, $9.64, fall, $9.74, January; wheat, $6.15. Steve Ayers, Champaign, Champaign County: Discounted drying last week resulted in area elevators looking like a semi convention! Yields are coming in highly variable (120 to 215 bushels per acre) with moisture in the 20s, but ranging from 1530 plus. Early bean yields are 60-plus, but many beans are still green. Our corn is still hand shelling at 22, so we are letting Mother Nature dry it for now. Rain began last early Thursday morning and continued through mid-morning for a total of 1.53 inches. The front moved through Thursday evening, dropping another half inch of rain along with quite a light show. Lightning hit our pole light with a pop that sounded like a gun shot. Temperatures in the 40s are expected for a couple nights and then things warm back up to mid- to upper 80s. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: A cool and clear Friday morning here with the thermometer reading 56 with a touch of fall. I think a lot of farmers are ready to “Start Your Combines” — if they haven’t already done so. I have heard of only a few in our immediate area who have started in corn and no soybeans yet. Rainfall for August was 1.5 inches and the total to date for the year is 25 inches. Do be careful if you are ready to head to the fields. Maybe it will be a “normal” harvest for all. Carrie Winkelmann, Menard County: It was a less-thanperfect drying week with 5 inches of rain, 4.1 inches of it coming all at once on Thursday evening. Corn is still standing well despite weather conditions. Soybeans are in various stages of turning.

Tom Ritter, Blue Mound, Macon County: The rains last week slowed harvest immensely. We had two rains totaling 2.5 to 3 inches and leaving some ponding. We were able to avoid the high winds that were forecast. The corn is still standing at a time when it could be very vulnerable. Harvest is no more than 10 percent completed and will be a day or two before farmers are back in the field. The record yields are just not there. A lot of farmers are estimating yield will average less than 80 to 190 bushels. The best corn is on rolling higher ground with the yields dropping off on some lower, flat areas. That’s where either crops were drowned out or yields were reduced due to saturated roots for an extended period of time, mostly in June. Soybean harvest is still two to three weeks off. Farmers are regrouping and getting ready to hit it again either late in the Labor Day weekend or early this week. Jimmy Ayers, Rochester, Sangamon County: This past week was fairly dry until Thursday and Friday. We received between 2.5 to 5 inches of rain. A record rainfall for Springfield. Small creeks and streams flooded. Corn harvest has been rolling along at a slow pace, but quite a few operations have started. Many were waiting until after Labor Day. Yields are a bit disappointing. Field averages are hurting the most — in the pockets that were drowned out. Yields range from 40 to 250. There is still some good corn in the area, with some field averages at 180-plus. Some beans are starting to turn, but the bulk are still green and probably will be helped a little bit by the last rains. It’s been pretty dry, so some of the rain was soaked up, but much of what fell ran off. Continue to think safety while you are working your way through harvest.

Page 7 Monday, September 6, 2010 FarmWeek

CROPWATCHERS Todd Easton, Charleston, Coles County: More and more combines came out through the week only to be stopped by, believe it or not, precipitation that began last Wednesday afternoon. Corn moisture is running in a wide range but most producers are finding fields to harvest in the 17- to 20-percent range. Grain quality is pretty decent. Yield reports are highly varied and for the most part not very exciting. It sounds like this is a wide-spread phenomenon; recent market action supports that theory. Soybeans are a week or more away from any possible harvest. Yield guesses for the crop are all over the place and probably are just guesses until the combines get into the fields. As I am writing this, thunderstorms are occurring outside and may stop any further harvesting until at least mid-weekend. Just goes to show that when you think you have the weather figured out, along comes a change in the pattern. Doug Uphoff, Shelbyville, Shelby County: Harvest started early (Aug. 26) here, and it’s a good thing because we received 5.2 inches of rain on Wednesday and Thursday. We have harvested 225 acres so far with moisture levels ranging from 16.2 to 19 percent. Yields on corn following corn are 18 to 20 percent less than corn following soybeans. We have field averages ranging from 133 to 180. The latter on corn following soybeans. What made the most difference was whether any water stood on the field or if the ground had some roll so the 14 inches of June rain got away. Heat in July and early August caused rapid maturity in the corn so the kernels are shallower than last year. There are a few less kernels caused by tip back on the ear. Those who had down corn are really struggling to get it harvested. Some are using rolling cones on the corn head plus a reel. I know some still have a way to go and I’m sure they were not wanting rain. No. 2 diesel, $2.54; No. 2 truck fuel, $3.01; gas off truck, $2.67; gas in town, $2.59; cash corn, $4.10; Decatur corn (no trucking off, $4.33; January Corn, $4.32; Decatur (no trucking off), $4.53; fall 2011, $4.15; cash beans, $10.07; Decatur beans, $10.34; fall 2010 Beans, $9.79; Decatur beans fall 2010, $10.09; January beans, $10.07; January Decatur beans (no trucking off), $10.38; fall 2011 beans, $9.66.

David Schaal, St. Peter, Fayette County: Had showers move in last Wednesday afternoon and evening and also on Thursday morning. They amounted to about 1 inch of rain. On Tuesday morning (Aug. 31), Fayette County performed its annual crop survey. The corn yield was 158.7 bushels per acre, with the range of 94 to 200 bushels per acre. The soybeans ranged from 31 to 65 with an average of 41.48 bushels per acre. I also have a Thursday morning crop survey report from Bond County. Yields there were 163.46 on corn and 41.96 on soybeans. Ranges were 74 to 210 on corn and 28.5 to 63 on soybeans. Half the producers in our area have begun corn harvest. A couple of our tour yields came from farmers who had shelled whole fields or reported combine monitor yields. I’ve heard yields of 120 to 180 with some a little better and some a little worse. The rains we received will help our bean crop. Very few beans are starting to turn. Everyone have a safe harvest. Dan Meinhart, Montrose, Jasper County: It was a more pleasant week. Showers were in the area off and on. Accumulatively, the area received about an inch of rain. It gave a boost to the beans and late corn. Silage chopping is pretty well wrapped up. Very little corn has been shelled. The excessively wet spring and the hot, dry summer have taken their toll on the corn yields and quality of the grain. Short kernels, light test weight; and mold are being reported. There is a limited supply of seed wheat. Most dealers are sold out. Many farmers are preparing for harvest by repairing equipment, cleaning out grain bins, mowing waterways and road ditches, and going to field days. A warming trend is in the forecast for this week. Rick Corners, Centralia, Jefferson County: We had another 1.5 inches of bean-blazing rain Thursday. It should really help fill the pods. Corn picking started this past week. Yields are very average with moistures from 15 to 20 plus.

Ted Kuebrich, Jerseyville, Jersey County: Jersey County received a little over one inch of rain this past week. It put a stop to the early corn shelling. Farmers who were in the field shelling reported moisture was running from 22 percent down to 17 percent. The grain quality showed some damage caused by moldy kernels. The test weight is running a little low. Prices at Jersey County Grain, Hardin: October corn, $4.04; January 2011 corn, $4.45; October 2010 beans, $9.82; January 2011 beans, $10.25. Kevin Raber, Browns, Wabash County: Corn harvest continued here in Wabash County. I started Aug. 30. My first fields were white corn. The yields are around 170 bushels an acre, with moistures of 17 percent. Quality and test weight were good. I had estimated higher yields, but the heat and dryness at the end must have hurt the crop. The dry weather has to be hurting the soybeans. I don’t have any beans close to harvest, but I’ve seen some fields that are almost ready. By my next report, I might have heard some bean yields. Ken Taake, Ullin, Pulaski County: Another dry week here in deep Southern Illinois. At least, the weather has been good for corn harvest, which is in full swing. Yields continue to run below normal. Our yields seem to be about 20 to 25 percent below our average. Alfatoxins are an ongoing concern. They are testing every load at the elevator, and lines are terrible. Thursday was the first day that we had hauled corn to the elevator — we’ve been putting it in the bin. We had one load rejected yesterday for high alfatoxin. Our earlier soybeans are turning yellow. Some people have earlier beans that they will be harvesting probably within the next week. Please take time to be careful during this busy season.

Reports received Friday morning. Expanded crop information available at FarmWeekNow.com

Rain slows harvest; big push expected this week BY DANIEL GRANT FarmWeek

Scattered rain showers — and in some instances heavy downpours — last week slowed an otherwise early start to corn harvest for some farmers. A severe storm passed

FarmWeekNow.com To listen to an audio interview with Cropwatcher Tom Ritter on early harvest, go to FarmWeekNow.com.

through Central Iowa and reportedly dumped four inches of rain and inflicted some wind damage at the Farm Progress Show in Boone. Opening of the second day of the show reportedly was delayed two hours. In Illinois, farmers as of the first of last week had harvested 2 percent of the corn crop compared to the five-year average of 1 percent. “Most farmers were just getting started, but the rain slowed things down,” said Tom Ritter, a FarmWeek Cropwatcher from Macon County.

John Brink, a farmer from Washington County, said many of the farmers who got an early start on corn harvest were those who have on-farm storage and drying units. “After Labor Day is when (harvest) really will start in earnest in my area,” Brink said. Moisture levels reportedly have declined to the point where more combines are expected to roll. As of last week corn moisture readings were 20 percent or below in Brink’s area and ranged from 18 to 22 percent in Ritter’s area. “As far as moisture, the crop is considerably drier than it was in mid-October or the first of November last year,” Ritter said. The corn crop is drying down quicker this year due to early planting in some areas while other fields simply died early due to a combination of too much early moisture, compaction issues, shallow root systems, and then a lack of moisture and high heat and humidity last

month, according to Kevin Black, GROWMARK insect/plant disease technical

that died prematurely is at risk of lower yields and test weights.”

‘The corn crop that was predicted earlier just isn’t there.’ — Tom Ritter Macon County farmer and FarmWeek Cropwatcher

manager. “We’ve got everything from corn that will finish normally to corn that just died,” Black said. “Anything

Ritter said the corn crop in his area likely won’t meet expectations farmers had before the hot, dry stretch in August.

“The corn crop that was predicted earlier just isn’t there,” Ritter said. “But farmers are very optimistic about soybeans in this area” after recent rains. National crop yield projections issued last week by Allendale Inc. reflected some crop deterioration issues experienced after USDA in August estimated average yields at 165 bushels per acre for corn and 44 bushels per acre for beans. Allendale projected national average yields of 162.3 bushels per acre for corn and 43.2 bushels for beans.

FarmWeek Page 8 Monday, September 6, 2010

WHEAT

Will tight seed supply limit wheat acres in Illinois? BY DANIEL GRANT FarmWeek

The fact that wheat growers had such a difficult time planting their crop a year ago could create more headaches for producers this fall. The supply of wheat seed in the state currently is tight, and producers interested in planting wheat this year but have not secured their seed supply have been advised to contact seed suppliers as soon as possible to place orders or get on waiting lists. “There’s no doubt there is a limited amount of highquality seed,” said Ken Martin, GROWMARK soybean/wheat product manager. “Seed supplies probably are

very tight across the soft (red) wheat belt” in Illinois, Indiana, Missouri, and Ohio. Illinois farmers last fall managed to plant just 350,000 acres of wheat, one of the state’s lowest wheat acreage totals on record. Farmers the previous year planted a half-million more acres of wheat statewide. John Brink, a wheat grower from Washington County and president of the Illinois Wheat Association, grows seed wheat and thus has an ample supply to plant this year’s crop. He said the tight seed supply could challenge some farmers but believes the situation won’t be a huge issue. “Some of the more prominent varieties are unavailable,”

Brink said. “So I think there is a shortage now, but there possibly could be some seed released in-season from guys who over-bought.” Martin advised wheat growers looking for seed to contact suppliers as soon as possible. “Try to at least get your name on the list of suppliers,” he said. Otherwise, farmers may consider planting thinner

stands this fall to spread out their seed supply. Steve Ebelhar, agronomist at the University of Illinois Dixon Springs Agricultural Center, said a slight adjustment to seeding rates can help, but he advised farmers against slashing seeding rates too low. “I’d recommend 35 seeds per square foot, but you can go down to 30 without hurting yourself too much,” he said.

“But I wouldn’t go anything less than 25 seeds per square foot, and that’s into very good seedbed conditions.” Overall, Brink predicted wheat plantings in Illinois this fall will bounce back closer to the 850,000-acre mark achieved two years ago but likely will fall short of plantings in the fall of 2007 when Illinois farmers planted 1.2 million acres of wheat.

Scientists crack wheat’s genetic sequence British scientists last month announced they decoded the genetic sequence of wheat, which they hope will lead to the breeding of better strains.

However, wheat growers shouldn’t expect immediate results from the scientific breakthrough. Fred Kolb, a wheat breeder at the University of Illinois,

told FarmWeek it could take years before researchers are able to use the new genetic information to improve wheat crops and boost yields. “It’s fair to say there is a tremendous amount of information made available (with the genetic sequencing of wheat),” Kolb said. “But there also is quite a lot of work to be done to organize (the sequencing information) and figure out what it all means. It’ll take some time to really impact breeding.” Kolb, who described himself as “more of a hands-on, whole plant breeder” said there is a movement to genetically enhance wheat to improve production. But traits beneficial to corn and soybeans might not produce the same results with the cereal crop. There also has been less money and resources put into wheat research overall compared to corn and soybeans, Kolb noted. “I’m not against that (genetically enhanced wheat), but the question is what traits should we move into wheat,” he said. “Drought tolerance would be a good target trait worldwide, but in the Eastern U.S., I doubt it would improve yields a whole lot.” Kolb currently helps wheat growers in Illinois improve yields by identifying and rating wheat varieties with resistance to Fusarium head blight, or head scab. Farmers who plan to plant wheat this fall may visit the website {http://vt.cropsci.illinois.edu/wheat.html} for a head scab evaluation from wheat variety testing. Overall, Kolb is optimistic Illinois farmers will plant more wheat this year compared to last year. “I’m optimistic there will be good acres planted this year (due in part to an earlier corn harvest),” he said. “I think there are more opportunities for farmers to make money with wheat this year.” — Daniel Grant

FarmWeek Page 9 Monday, September 6, 2010

PRODUCTION

Farmland prices inch higher; cash rents projected to rise BY DANIEL GRANT FarmWeek

Farmland values in Illinois have increased so far this year, according to two separate surveys. The Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA) last week at the Farm Progress Show in Boone, Iowa, released a mid-year survey of its members that showed farmland prices for the first half of the year increased by an average of $131 per acre, or 1.7 percent. Elsewhere, the Federal Reserve Bank of Chicago reported ag land values in the second quarter shot up 6 percent from a year ago in the Seventh Federal Reserve District, which is made up of Illinois, Indiana, Iowa, Wisconsin, and Michigan. The Federal Reserve Bankâ&#x20AC;&#x2122;s estimate is based on a survey

of 198 ag bankers. â&#x20AC;&#x153;Farmland has been a star as far as returns,â&#x20AC;? said Gary Schnitkey, University of Illinois Extension farm management specialist, who serves as secretary/treasurer for ISPFMRA. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been a good investment.â&#x20AC;? Farmland prices in Illinois as of July 1 averaged $7,665 per acre for excellent quality land, $6,639 per acre for good quality ground, $5,724 for average quality land, and $4,646 for fair quality farmland, according to the ISPFMRA mid-year survey. Schnitkey believes farmland prices are based on returns and he sees no signs of a bubble in the market. In fact, a lower volume of farmland sales in Illinois so far this year indicates to Schnitkey that landowners are clinging to their ground

as a solid investment. â&#x20AC;&#x153;What I think is happening on the volume side is there always are estate sales, but there have been fewer discretionary sales,â&#x20AC;? he said. â&#x20AC;&#x153;The feeling I get is people who own farmland donâ&#x20AC;&#x2122;t have many alternatives (in which to make a better investment) if they sell it. â&#x20AC;&#x153;I think people are saying farmland is a safe investment relative to the stock market.â&#x20AC;? Meanwhile, the financial condition of the farmland market is much different than the overinflated housing market prior to its collapse. The Chicago Fed reported the portion of ag loans perceived as having â&#x20AC;&#x153;majorâ&#x20AC;? or â&#x20AC;&#x153;severeâ&#x20AC;? repayment problems was less than 4 percent in 2010. This compares to 10 percent of home mortgages that are past due while 23 percent

of home mortgages have negative equity. A downside of the strong farmland market for farmers who rent the ground they farm is the fact that ISPFMRA members projected cash rents in 2011 will increase by an average of $7 per acre for excellent and good quality farmland, $6 per acre for average land, and $5 per acre for fair ground (see graphic below). â&#x20AC;&#x153;If we hadnâ&#x20AC;&#x2122;t seen the

(crop) price increase (in recent months), we probably wouldâ&#x20AC;&#x2122;ve been looking at stable to declining cash rents,â&#x20AC;? Schnitkey said. â&#x20AC;&#x153;But increased commodity prices kept those cash rents going up.â&#x20AC;? Schnitkey noted the cash rent projections are averages and could vary by $75 per acre or more either way depending on the productivity of each field along with the relationship between landlords and tenants.

Time to evaluate your 2010 weed control BY BARRY NASH

We now have an excellent opportunity to evaluate this yearâ&#x20AC;&#x2122;s weed control system â&#x20AC;&#x201D; from the combine. Be sure to note any weeds you see. By the first of September, most weeds are at the reproductive stage and easy to identify. Proper weed identification is critical during this time, as it assists Barry Nash in evaluating this yearâ&#x20AC;&#x2122;s weed control system. Key weeds to look for include small-seeded broadleaves such as waterhemp, lambsquarter, and marestail (horseweed), as well as a few large seeded broadleaves such as common ragweed, giant ragweed, and morningglory. Be sure to check the fields closely â&#x20AC;&#x201D; as these weeds can produce seed at very short heights. An additional area of concern is identifying perennial weeds such as scouring r ush. For example, if an area of a field is identified now as having a heavy population of scouring r ush, fall and spring tillage would be recommended, whereas,

simple spring tillage is generally adequate for small-seeded broadleaves. Correct identification and location of these weeds will help you plan for a better weed control system in 2011. In addition to accurate identification, recognizing the stage of weed growth also is important. For example, if a waterhemp or giant ragweed plant is 2 to 3 feet in height, chances are that the postemergence application failed. Weeds that are 4 or more feet in height suggest that BOTH the soil AND postemergence applications failed. The key question now is why did these herbicide applications fail? If the postemergence application failed, did we not apply a high enough rate of the herbicide; did we have enough coverage; did we use the correct surfactant system? On the other hand, if the soil application failed, was it due to incorporation (or maybe the product performs better when not incorporated); did we receive too much rainfall; was the weed spectrum not adequate for this weed control system? Finally, keep a running list of the issues you notice on each field during your fall inspection. This should help you develop the best

weed management system for 2011. Bar r y Nash is GROWMARKâ&#x20AC;&#x2122;s weed science technical manager. His e-mail address is bnash@growmark.com.

The cash rent estimates shown here are averages. Rates vary greatly around the state due to differences in soil productivity and landlord/tenant relationships. The quality of farmland in the graphic is defined by corn yield potential; 190 bushels-plus per acre (excellent), 170 to 190 bushels per acre (good), 150 to 170 bushels per acre (average), and below 150 bushels per acre (fair).

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FarmWeek Page 10 Monday, September 6, 2010

RESEARCH

Illustration by Chip Beuchert, USDA-ARS

Pulling air down through bins gives better insect control Farmers have used aeration for decades to maintain the quality of bin-stored grain by keeping it cool, as well as to manage insect pests. Recently, USDA Agricultural Research Service (ARS) studies have examined whether itâ&#x20AC;&#x2122;s better to direct the air from above or below as a way to use temperatures of 60 degrees Fahrenheit or lower to control insects. USDA entomologist Frank Arthur and agricultural engineer Mark Casada, both based in Manhattan, Kan., experimented with bins that were cooled with either pressure aeration or suction aeration. Pressure aeration uses fans

to push ambient air from the bottom of the bin upward, while suction aeration involves reversing the fans to pull air from the top downward. The researchers conducted two eight-month trials using six metal bins with perforated floors and storage capacities for 1,250 bushels of wheat. The insects examined in the study were rusty grain beetles, foreign grain beetles, hairy fungus beetles, red flour beetles, saw-toothed grain beetles, rice weevils, and lesser grain borers. The study showed that during the summer suction aeration cooled the upper portion of wheat, or the surface zone,

more quickly than pressure aeration. That difference also correlated to fewer insect pests. For example, in pressure aeration-cooled bins, 3,290 rusty grain beetles and 8,210 red flour beetles were found in surface-zone traps compared to 662 and 722 beetles, respectively, in suction aeration-treated bins. Suction aerationâ&#x20AC;&#x2122;s rapid cooling of the grainâ&#x20AC;&#x2122;s surface zone is advantageous because thatâ&#x20AC;&#x2122;s where insects initially infest the grain after flying in from outside, according to Arthur. The researchers said largerscale studies are needed.

Total To otal Grain Ma Marketing arketing Your Yo ur Par Partner rtner o off Cho Choice ice fo forr Grain Market Marketing ing g

William â&#x20AC;&#x153;Edâ&#x20AC;? Roy with the University of Illinoisâ&#x20AC;&#x2122; agricultural and biological engineering department demonstrates an experimental cart during the recent Agronomy Day. Using lasers and a camera, the engineers can count cornstalks, modeled by PVC pipe above, and analyze stalksâ&#x20AC;&#x2122; diameters and spacing between plants for field data. (Photo by Kay Shipman)

Out for the count: U of I researchers harnessing lasers BY KAY SHIPMAN FarmWeek

With coverage coverage e that spans 21 counties, Total To otal Grain Grain Marketing offers Mark eting of fe ers producers access to mor re end-user more markets. ma rkets. Our ability ability to source grain grain to t meet the needs off domestic domestic and international processors, ensures producers produ ucers receive receive for gr ain top prices for grain year-round. y ear-round.

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A three-wheeled cart equipped with a laptop computer, lasers, and a camera may not resemble field equipment, but University of Illinois researchers said the information collected by the cart could help estimate corn yields and biomass production. Tony Grift and William â&#x20AC;&#x153;Edâ&#x20AC;? Roy, both with the U of I agricultural and biological engineering department, recently demonstrated the cart at the U of I Crop Sciences Research farm. The researchersâ&#x20AC;&#x2122; goal is to obtain a field count of cornstalks and to assess cornstalk diameters. â&#x20AC;&#x153;Our goal is to be able to hitch it on a farm implement,â&#x20AC;? Roy said. Four lasers are mounted on one side of the cart. When the lasers beams are intercepted by a cornstalk, the information is recorded on the computer. Roy demonstrated the cart by pushing it over short sections of PVC pipe that served as substitutes for cornstalks. The opposite side of the cart includes lasers and a camera whose images are used to

estimate stalk diameters. Roy noted the stalk diameters can be used to estimate yields. â&#x20AC;&#x153;There is a correlation between stalk diameter and ear size. The larger the stalk, the larger the ear,â&#x20AC;? he said.

Currently, Roy and Grift have tested the cart in the laboratory, where it has worked well. It has yet to be fully tested in the field, Roy added. In addition to collecting information for corn yields, the cartâ&#x20AC;&#x2122;s information one day may be used to estimate corn stover yields for biomass production, according to the researcher.

FarmWeek Page 11 Monday, September 6, 2010

YOUNG LEADERS

Young Leaders donate nearly $15,000 to Harvest for All were distributed by YL representatives in all 18 districts Illinois Farm Bureau Young of the state. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s helping Leaders from around the local communities.â&#x20AC;? state recently donated Some YL represennearly $15,000 to food tatives used the money â&#x20AC;&#x2DC;The overall goal is for this to buy food for their pantries statewide money to stay in Illinois (to local pantries while through the Harvest for All program. others donated the feed the hungry)â&#x20AC;&#x2122; Young Leaders made money directly to food the mid-year contribupantries. tion from funds raised Hunger isnâ&#x20AC;&#x2122;t a â&#x20AC;&#x201D; Jennifer Smith through sales of colconcern limited to IFB Young Leader manager lectible, scale-model other countries or semi-trucks featuring large metropolitan the IFB and Harvest areas of the U.S. for All logos and from prize last year collected a total of About 11 percent of Illinois money awarded to IFB 359,702 pounds of food that households reportedly face Young Leaders from the was donated to Harvest for food insecurity. American Farm Bureau FedAll. Meanwhile, food pantries eration. â&#x20AC;&#x153;The overall goal is for in the state also are key Illinois last year was first this money to stay in Illiresources for families during nationwide in total dollars nois,â&#x20AC;? Jennifer Smith, IFB natural disasters, such as in donated to Harvest for All Young Leader manager, said the aftermath from the out($92,112) and placed second in of the recent donations that break of tornadoes that wreaked havoc in Central Illinois and during flooding that inundated parts of Northern Illinois earlier this summer, Smith noted. A workshop on managing weeds in pastures will be IFB Young Leaders last from 6 to 8 p.m. Wednesday at the Forest Preserve District year sold out all the colof DuPage County and Danada Equestrian Center, lectible trucks (350) that feaWheaton. tured a grain trailer. Young â&#x20AC;&#x153;Weeds can rob you of potential forage for your horses and livestock,â&#x20AC;? said Ellen Phillips, University of Illinois Extension educator. Phillips will discuss weed identification, weed control options, safe herbicide use, and general management principles. Registration is $20 per adult. The fee is $5 for children younger than 18. For more information, contact Phillips at 708-352-0109 or download a brochure and registration form at {http://web.extension.illinois.edu/countrysidecenter/downlo ads/24983.pdf}.

BY DANIEL GRANT FarmWeek

volunteer hours (1,854). IFB Young Leaders, FFA members, and other volunteers in Illinois

Managing pasture weeds workshop Wednesday in DuPage County

Auction Calendar Wed., Sept. 8. 10 a.m. 288.57 Ac. Real Estate. Elbea (Ed) Malone, ABINGDON, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers. com Wed., Sept. 8. 116.3 Ac. McLean Co. Soy Capital Ag Services. www.soycapitalag.com Thurs., Sept. 9. 7 p.m. Farmland Auction. Late Norma and Albert Stocke Farm, CARMI, IL. Dosherâ&#x20AC;&#x2122;s Auction Service. Thurs., Sept. 9. 10 a.m. Land Auction. Fuenning and Shoemaker Farm, HOOPESTON, IL. Wallace Land Company. w w w. w a l l a c e l a n d . com Thurs., Sept. 9. 1:30 p.m. Real Estate Auction. Eunice Lois Semon Estate, LOSTANT, IL. Bradleysâ&#x20AC;&#x2122; and Immke Auction Service. Thurs., Sept. 9. 10 a.m. Farmland Auction. Grandpa Doc L.P., ALEXIS, IL. Gregory Real Estate and Auction, LLC. biddersandbuyers.com Fri., Sept. 10. 10 a.m.

314 Ac. Lee Co. Dennis and Sharon Nickels. Bearrows Real Estate and Auction Co. Sat., Sept. 11. 8:30 a.m. Hazelhurst Consignment Auction. POLO, IL. Public Auction Service. Sat., Sept. 11. 9:30 a.m. Consignment Auction. GREENFIELD, IL. Jerry Joyce, Larry Derricks and Mark Pennell, Auctioneers. Sat., Sept. 11. 10 a.m. Antique Tractor Auction. Doug Boughton Estate, LELAND, IL. Espe Auctioneering. www.espeauctions. com Sat., Sept. 11. 10:30 a.m. Farm machinery. Mike and Pat Fredrickson, ALEDO, IL. Steve Relander Auctioneer/Farm Broker. www.relanderauctions. com Thurs. Sept. 16. 7 p.m. Cass Co. Land Auction. Mary L. Lockhart Estate. Sanert Auction Service. www.sanertauctions .com Thurs., Sept. 16. 10 a.m. Farmland Auction. Donald Hougas, NORWAY, IL. Dick

Illinois Farm Bureau Young Leaders will â&#x20AC;&#x153;Help Drive Out Hungerâ&#x20AC;? from Illinois by selling 250 of these scale-model semi trucks that feature the logos of IFB and Harvest for All on an anhydrous ammonia tank. Young Leaders in the state last year sold out of the first series of collectible trucks (350), each of which featured a grain trailer with the same logos. Each truck in the second series will sell for $60 with all proceeds going to Harvest for All. Contact Jennifer Smith, Young Leader manager, at jsmith@ilfb.org or 309-557-2536 for more details.

Leaders this year reserved 250 trucks that will be sold as the second line in the series. This yearâ&#x20AC;&#x2122;s truck features an anhydrous ammonia tank with the IFB and Harvest for All logos. Each truck sells for $60, with all proceeds going to Harvest for All. Contact Jennifer Smith by e-mail at jsmith@ilfb.org or by phone at 309-557-2536 for more details or to order one of the newest collectible trucks. Smith also noted the deadline for counties to submit Harvest for All numbers for the year is the end of this month.

McConville and Marty McConville, Auctioneers. www.mcconvillerealty. com Sat., Sept. 18. 9:30 a.m. Real Estate Auction. Shirley M. Miller Trust, DIXON, IL. Lenny Bryson and Mark Ebert, Auctioneers. topauctions24-7.com/paspolo Wed., Sept. 22. 11:30 a.m. Whiteside Co. Land Auction. Fulton Land Development, LLC, FULTON, IL. Lenny Bryson, Auctioneer. www.lennybrysonaucti oneer.com Wed., Sept. 22. 7 p.m. Land Auction. Lotta Moore Heirs, CLINTON, IL. Haycraft Auction Co. Inc. www.haycraftauction s.com Fri., Sept. 24. 10 a.m. 277 Ac. Macoupin Co. Farmland. Estate of Catherine Klaus, WAGGONER, IL. Mike Crabtree, Auctioneer. www.mikecrabtreeau ctions.com Wed., Sept. 29. 6:30 p.m. Northern IL Land Auction. PRINCETON, IL. Capital Agricultural Property Services, Inc. www.capitalag.com Â&#x2039; *52:0$5. ,QF $ )DUP %XUHDX $IĂ&#x20AC;OLDWH $

FarmWeek Page 12 Monday, September 6, 2010

FB IN ACTION

Saline County honors its ‘Membership Man’ BY DAVE MEEKER

With harvest in full swing, Joe Bramlet, Saline County Farm Bureau board member, is working diligently to bring in his crop. Bramlet also has harvested several new voting members, which has earned him the title of “Membership Man.” Over the past four years, Bramlet has signed 21, seven, 23, and five new voting members, respectively. In addition, in each of those years he helped to reinstate an annual minimum of three voting members to help the county Farm Bureau reach its voting member quotas. His record of signing 56 new voting members over four years and reinstating a minimum of 12 voting members is a first for a Saline County FB board member. In addition to recruitment, Bramlet also is active in other programs, especially in seeking donations for the Saline-Gallatin Agriculture in the Classroom (AITC) program. For the past two years, Bramlet has been the first and second place recruiter Joe Bramlet is a Saline County Farm for donations and sponsorBureau board director and “Mem- ships for the AITC golf outbership Man.” (Photo by Dave ing. Meeker, Saline County Farm Bureau Bramlet also serves on the manager) Southern FS board, frequently contacts legislators about important issues, and is active in the local FFA Alumni and Soil and Water Conservation District. Dave Meeker is the Saline County Farm Bureau manager. He can be reached at 618-252-6992.

Champaign County FB graduates 13 leaders Thirteen members of the 2010 Champaign County Farm Bureau Leadership Academy, the first of its kind, have graduated after a

five-week seminar. The graduates are J.C. Reitmeier, St. Joseph; Dan Grieser, Rantoul; Marie Tan, Sidney; Marguerite Zahnd, Champaign; and Todd Weitekamp, Fisher. Also, Brad Zwilling, Fisher; Scott Kesler, Ogden; Mark Pflugmacher, Thomasboro; Aaron Esry, St. Joseph; Eric Suits, Penfield; Adam Watson, Villa Grove; Dick

Miller, Philo; and Jerry Watson, Villa Grove. Sessions were conducted on Mondays during the month of August and included 23 speakers on topics such as effective communication with the media, motivating volunteers, leading productive meetings, Farm Bureau history, and proper etiquette when conducting a business lunch. Champaign County Farm Bureau manager Brad Uken said plans are under way to make the leadership academy an annual event. Brad Uken is manager of Champaign County Farm Bureau. He can be reached at 217-8242940.

State Rep. Camille Lilly (D-Chicago), far right, describes the garden near her Chicago district office to Menard County Farm Bureau’s Secretary Bill Montgomery, left, and President Terry Entwistle. Looking on are Willie Ferba, center, who started the neighborhood garden, and Chicago Alderwoman Deborah Graham, who formerly served as the district’s state representative and had been “adopted” by the county Farm Bureau. (Photo by Dee Dee Gellerman, Menard County Farm Bureau manager)

Health care, candy, gardens highlights of Menard County FB leaders tour Menard County Farm Bureau leaders, joined by Cook County Farm Bureau members, recently learned about health care, candy manufacturing, and urban gardening when they toured the district of their “adopted” legislator, state Rep. Camille Lilly (D-Chicago). Lilly was appointed to the seat formerly held by now Chicago Alderwoman Deborah Graham, who also had been “adopted” by the Menard County Farm Bureau as a legislator and met with the group that included members of Lilly’s staff. The group learned about the state-of-theart medical care available at the Shriners Hospitals for Children, Oak Park. Participants were told patients come from throughout North America for care and services that are provided regardless of the patients’ ability to pay. A taste of metro Chicago’s candy industry

was part of the visitors’ tour of the Mars Candy Factory. The staff discussed Mars’ role in the community as well as its plans to expand a product line and add 20 new jobs. The group toured three urban gardens, including one near the representative’s district office. Third grade students at Oak Park’s Hatch Elementary described their work with flowers and vegetables. Then the group toured a former vacant lot in Chicago’s Austin neighborhood that now is home to Harambee vegetable garden, whose plots are rented by local residents. A third urban garden, located near Lilly’s office, was established by a neighborhood couple, who continue to tend the plants. Cook County Farm Bureau presented Lilly with a Friend of Ag Award, and she plans to visit Menard County with her staff in the fall.

POPPING IN FOR A TOUR

State Rep. Deb Mell (D-Chicago) and McHenry County Farm Bureau President Bruce Meier check out a popcorn popper made at Cretor’s Manufacturing, a family-owned business located in Mell’s district. Cretor’s focuses on technology for the popcorn industry. Mell, who was presented a Friend of Ag Award and is one of the newest “adopted” legislators, having been adopted by McHenry County, recently hosted members of the McHenry and Cook County Farm Bureaus. The group also toured a volunteer-run neighborhood garden whose produce is donated to a local food pantry. They discussed public safety concerns at the 17th District Police Station. The representative and some of her staff plan to visit McHenry County this fall. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)

FarmWeek Page 13 Monday, September 6, 2010

FROM THE COUNTIES

RUNDY — Farm Bureau and WILL AM580 Radio will sponsor a fall marketing outlook meeting at 6:30 p.m. Tuesday, Sept. 14, at the American Legion, Mazon. Pizza will be served. The panel will feature Bill Gentry, Risk Management Commodities, Lafayette, Ind.; Curt Kimmel, Bates Commodities, Normal; and Jacquie Voeks, Stewart Peterson Group, Champaign. Call the Farm Bureau office at 815-942-6400 for dinner reservations or more information. ANCOCK — The annual conservation tillage field day will be from 4 to 7 p.m. Tuesday, Sept. 14, north of Carthage on Highway 94. There will be an education seminar and pork chop dinner served after the field demonstrations. Mike Rogge, University of Illinois Extension crop specialist; Dick Burling, Hancock County Farm Service Agency county executive director; and Lori Bollin, Hancock County Natural Resources and Conservation Service (HCSWCD) district conservationist, will be the speakers. Continuing education credits have been applied. Call Betty Buckert at the HCSWCD office at 217357-2188, ext. 3, for more information. ENRY — A market outlook meeting will be at 6:15 p.m. Thursday at the Moline Viking Club, 1450 41st St., Moline. A buffet dinner will be served. Mark Gold, Top Third Ag Marketing, will be the speaker. There will be updates from Mike Schaver, Gold Star FS grain merchandiser, and a WQAD meteorologist. Cost for the series is $60 or a single session for $18. Call the Henry County Farm Bureau office at 309-937-2411 or the Rock Island County Farm Bureau office at 309-736-7432 for reservations or more information. ASALLE — The Marketing Committee will sponsor a seed corn plot day at 5:30 p.m. Tuesday, Sept. 14, at a plot west of Ottawa. Call the Farm Bureau office at 815-4330371 for a meal ticket or more information. • Farm Bureau has slowmoving vehicle (SMV) emblems for sale. Cost is $2. There is a limited number of SMV kits available for $6. Call the Farm Bureau office for more information. IVINGSTON — The Livingston County Farm Bureau Foundation will sponsor a “Pull for Ag Students” fundraiser at 8:30 a.m. Sunday at the Livingston County Farm Bureau Gun Club, 4-H Park, Pontiac. Cost is $15, which includes lunch, targets, and prize money. Proceeds will benefit the Roger Naylor Scholarship Fund. Call the Farm

Bureau office for more information. ERCER — The Marketing Committee will sponsor a fall market outlook meeting at 7:30 p.m. Wednesday at the Farm Bureau office. Bryce Stremming, MID-CO Commodities, will be the speaker. Call the Farm Bureau office at 582-5116 for more information. OCK ISLAND — The market outlook series will begin at 6:15 p.m. Thursday at the Moline Viking Club. A buffet dinner will be served. Mark Gold, Top Third Ag Marketing, will be the speaker. Call the Farm Bureau office by Wednesday for reservations or more information. • A Property Tax Assessment 101 session will be presented from 11:30 a.m. to 1 p.m. and from 5:30 to 7 p.m. Tuesday,

Sept. 14, at the Farm Bureau office. Brenda Matherly, Illinois Farm Bureau, will discuss the Farmland Assessment Act, property classification and valuation, and important timeline information. Call the Farm Bureau office at 309-736-7432 by Monday, Sept. 13, for reservations or more information. T. CLAIR — The Young Farmers will sponsor a “shred day” for Farm Bureau members from 9 to 11 a.m. Saturday at the Farm Bureau office. Cintas Document Management Corp. will provide the service. Call the Farm Bureau office at 618-233-6800 for more information. ANGAMON — Farm Bureau will sponsor a bus trip Tuesday, Sept. 14, to the Chicago Cubs vs. St. Louis Cardinals game in St. Louis. Tick-

ets are $70 for members and $75 for non-members, the latter of whom must be accompanied by members. There is a limit of two non-member guests. Call the Farm Bureau office for more information. TARK — Farm Bureau will sponsor an information meeting about U.S. Environmental Protection Agency’s spill prevention, control, and countermeasure rule at 3 p.m. Thursday at the Farm Bureau office. Kevin Runkle, Illinois Fertilizer and Chemical Association, will be the speaker. Call the Farm Bureau office at 309286-7481 by Tuesday for reservations or more information. INNEBAGO — Farm Bureau will sponsor an informational meeting on the 2011 Alaska trip at 7 p.m. Monday, Sept. 13, at the Farm

Bureau office. The trip is scheduled from July 25 to Aug. 7. Call the Farm Bureau office at 9620653 for reservations for the meeting or more information. • The Winnebago and Boone Prime Timers will sponsor a “Treat your Senses” tour Thursday, Sept. 30. The group will tour the Wind Ridge Herb Farm at 9:30 a.m. Following the tour, participants will go to the McEachran Homestead at 11:30 a.m. for wine tasting, lunch, and a presentation of the history of the homestead. Cost is $22. Call the Farm Bureau office at 962-9653 for reservations or more information. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

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FarmWeek Page 14 Monday, September 6, 2010

PROFITABILITY

Make election season one of your best harvests BY CHUCK SPENCER

Ears on the cornstalks are beginning to drop, temperatures are doing the same, and the fall campaigns are in full swing. If we focus solely on harvesting our crops and not on harvesting ideas, we miss an opportunity. Labor Day Chuck Spencer marks the beginning of the final push of a very active election season and now is the time to tune in to campaign messages. I hear many people say they want to tune out. If we tune out, will

we advance agriculture’s issues? Listen to what candidates are saying about the issues and how they would vote. They pay attention to the reaction of voters at town hall meetings, on the radio, or at a local campaign event. Are we evaluating their messages and positions and providing our responses to the candidates? Have you provided a position paper on an issue of importance to your local campaigns? We cannot afford to wait until after the election to begin shaping future political decisions. Are you advising candidates for public office that agriculture is one of the most impor-

tant economic engines in our state? Do they know we play a major role in our national economy, too? Our accomplishments and challenges

deserve priority attention and, if addressed, can help lead our economic recovery. An example would be infrastructure improvements to our transportation systems. New construction or repairs mean jobs, and we use all modes of

transportation as an economic advantage in Illinois. New 1,200-foot locks not only would improve our worldwide competitiveness for shipping grain, but they also would improve the efficiency of moving materials back up the river. The river system is a major inland port system that serves our entire country. Pick your favorite issue and, most importantly, communicate it to candidates running for office. Do proposed regulations have you concerned, and are they efficient for agriculture? Are the regulations sciencebased? Will programs be developed that encourage compliance

before penalties are assessed for non-compliance? Express your support for business climate issues including tax rates that spur investment, growth, and job creation. An example may be a biofuels refinery located in a rural area using renewable agricultural products to create energy, livestock feed, and jobs. Most importantly, talk issues with candidates. Harvest is one of the best times of the year for agriculture. Make this election season one of your best harvests. Chuck Spencer is GROWMARK’s director of government affairs. His e-mail address is cspencer@growmark.com.

FAPRI: Export growth boosts grain price projections BY DANIEL GRANT FarmWeek

M A R K E T FA C T S

Feeder pig prices reported to USDA*

Weight 10 lbs. 40 lbs. 50 lbs. Receipts

Range Per Head Weighted Ave. Price $35.10-$42.50 $38.35 $47.00-$61.00 $55.81 n/a n/a This Week Last Week 26,527 22,331 *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 $75.73 $79.00 $56.04 $58.46

Change -3.27 -2.42

USDA five-state area slaughter cattle price Steers Heifers

This week $95.45 $96.00

(Thursday’s price) Prv. week Change n/a $99.00 -3.00

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change 114.69 -0.84

This week 113.85

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 125-160 lbs. for 122140 $/cwt., dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 08-26-10 7.2 25.5 45.3 08-19-10 11.9 24.6 43.8 Last year 17.7 16.8 37.0 Season total 1448.5 238.2 1856.0 Previous season total 1235.3 184.3 1764.5 USDA projected total 1470 1200 1975 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

The crop-damaging drought in Russia (estimated at $1.1 billion in losses) and surrounding nations could support U.S. grain prices into next year. Mid-year projections released last month by the University of Missouri Food and Agricultural Policy Research Institute (FAPRI) forecast increased exports and higher prices for corn and wheat. Exports between 2009/10 and 2010/11 were projected to grow from 1.98 billion bushels to 2.11 billion bushels for corn and from 881 million bushels to 1.2 billion bushels for wheat. The average price of each crop during the same time was projected to rise from $3.55 to $3.68 per bushel for corn and from $4.87 to $5.10 per bushel for wheat. “Russia and neighboring countries have lowered production estimates and banned (grain) exports,” said Scott Gerlt, FAPRI crop analyst. “There’s going to be a void in the wheat export market.” And that void should continue to be filled by U.S. wheat and corn, which are key ingredients for livestock feed. The increased demand for grain is expected to boost U.S. plantings next year by 2.5 million acres for wheat and 1.2 million acres for corn, according to FAPRI. If realized, larger plantings next year or record corn production this year could put downward pressure on the crop markets, Gerlt noted. The soybean market apparently could feel the burden of record-large plantings this year (78.9 million) combined with a slight drop in exports from a record 1.47 billion in 2009/10 to 1.43 billion in 2010/11. FAPRI projected the aver-

age soybean price from 2009/10 to 2010/11 will slip from $9.60 to $9.35 per bushel. The good news for livestock producers is feed prices declined from 2008 peaks and exports have improved this year. Meanwhile, pork production this year is down 2.5 percent and cow numbers have followed a similar trend. “Both supply and demand are moving in the right direction,” said Scott Brown, FAPRI livestock economist. “Reduced supply helps the

improved price outlook.” FAPRI projected the average hog price from 2010 to 2011 would increase from $54.59 to $56.39 per hundredweight and fed cattle prices during the same time would jump from an average of $93.50 to $98.50 per hundredweight. A growing dairy herd was projected to keep a lid on milk prices, however. The all-milk price average was projected at $16.56 per hundredweight in 2010 with a slight jump to $17 in 2011.

August milk up significantly The Class III price for milk adjusted to 3.5 percent butterfat for the month of August was $15.18 per hundredweight, a $1.14 increase from the previous month. A much-needed shot in the arm came last week as the Class III price rose to a level not seen in nearly two years. This increase will help offset rising feed prices. The higher prices are a direct result of the hot, humid, summer which took off a few pounds of production and reduced milk supplies.

FarmWeek Page 15 Monday, September 6, 2010

PROFITABILITY Corn Strategy

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

Cents per bu.

2009 crop: Wrap-up oldcrop sales now. 2010 crop: The December contract penetrated the $4.52 resistance, exploding to the next level at $4.70 in what is looking like a “panic blowoff.” Going forward, the trade will have to contend with seasonal pressure with harvest quickly approaching. Use this surge for catch-up sales. Fundamentals: The corn market has been drawing strength from the wheat market, but yield uncertainty has been allowing it to have some independent strength. Yield reports from early harvest have been disappointing, leading traders to expect USDA to lower its estimate. Demand for U.S. corn remains strong with weekly export sales, 1,658,200 (62.4 million bushels) metric tons last week, again topping expectations. The increase in demand is coming mostly from buyers being forced to shift feedgrain demand to the U.S. because of the drought in Black Sea countries.

Soybean Strategy

Smart money leaving grain? Long-term investors who put money in commodities mostly through index funds have steadily liquidated long

Basis charts

positions in the wheat market the past three to four weeks. The Commodity Futures Trading Commission (CFTC) lists them as the “swaps” category. It suggests investors may see more downside risk than upside opportunity at this time. They started liquidating soybean positions two weeks ago, and corn last week. While a oneto two-week change does not make a trend, it does indicate things need to be watched closely. The big speculative trading funds, designated “managed money” by the CFTC, have slowed their accumulation, too, hinting they may not have much more capital to invest in grains. In essence, grain markets may be exhausting upside potential for now. These graphics are posted at {www.twitter.com/agrivisor} each week. AgriVisor endorses crop insurance by

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2009 crop: Interior basis levels gave up premium more willingly last week. In some places they may give up another 30 to 40 cents by the time harvest hits full stride. If the new crop is good, there’s little incentive to hold old crop into next year. 2010 crop: Recent trading is typical for a market shifting its short-term trend. Use these prices for catch-up sales. Fundamentals: Recent rains across the Corn Belt should boost pod fill and improve yield prospects slightly more than what might have occurred without them. A couple of private firms have forecast a yield near 43.5 bushels per acre, down slightly from USDA’s August forecast, but still large enough to lift the carryout to 300 million bushels. Demand for soybeans and products remains robust. Still, it’s apparent that Chinese buying has slowed. Crush margins on imported soybeans are negative, and buyers may be

waiting for the “harvest low.”

Wheat Strategy 2010 crop: The decline in wheat prices has temporarily stopped, with prices trading sideways the last two weeks. Prices could shift higher if Chicago December would clear $7.25 resistance, but it may take a move above $7.50 to turn the short-term trend up. Use current prices for catch-up sales. Storage hedges, or hedge-to-arrive (HTA) contracts, for winter delivery are still the best tool. 2011 crop: Use rallies to $7.10 on Chicago July 2011

futures for catch-up sales. If basis is wide compared to this past summer, consider an HTA contract. Fundamentals: Global demand for wheat has shifted from the former Soviet Union countries to the U.S. Persistent strong weekly export sales confirm this, coming in above expectations the last four weeks. They topped 1 million metric tons (36.7 million bushels) again this past week. The pace should be sustained into next year, especially after Russia’s prime minister indicated he would not lift the export ban until next year’s harvest.

FarmWeek Page 16 Monday, September 6, 2010

PERSPECTIVES

Questions raised on timber harvest tax fee, fund In 1983, the General Assembly passed the Illinois Forestry Development Act, which created a program to collect a 4 percent fee on harvested timber in Illinois and established the Illinois Forestry Development Fund. The 4 percent fee is based on the dollar amount paid to Illinois forest landowners for the sale of their timber. Money collected from the fee is placed in the Forestry Fund. State-licensed timber buyers collect the fee and send the money to the Illinois Department of Natural Resources (IDNR) for deposit into the fund, which is used to reimburse forest landowners for recommended cost-share practices they have implemented under an IDNRapproved forest management plan. In the past, landowner cost-share programs have paid for such practices as the development of a forest management plan, tree planting, and timber stand improveJOHN GUNTER ment. Money from guest columnist the fund also is to be used by the Illinois Forestry Development Council for operation expenses. The council is charged with studying and evaluating Illinois’ forest resources and forest industry and determining the magnitude of those forest resources, the benefits forests provide, the economic development and employment opportunities related to the forest industry, funding needs for forestry programs, and the soil, water, and wildlife habitat benefits of forestry practices. The council consists of 28 members who represent the General Assembly, the governor, state agencies, organizations that have an interest in the state’s forests, universities, the forest products industry, urban interests, private landowners who are timber producers,

farmers, and environmental interests. In 2004, the administration at that time began a practice of transferring balances from the Forestry Fund to the state General Revenue Fund (GRF) for non-forestry government programs such as Medicare and education.

practices need up to 12 months to complete, thus extending obligations over multiple fiscal years. According to state policy, funds are considered obligated only if the amount is more than $10,000 and the obligation has been filed by the state

These transfers are commonly referred to as fund sweeps. The administration argued it took only surplus funds from the accounts that were not needed to sustain programs. However, groups such as the Illinois Forestry Association (IFA) argue it is improper to take fees assessed for one purpose, such as forestry, and use the money to pay general state expenses. These sweeps are based partly on the mistaken perception that the Forestry Fund has a surplus at the end of the fiscal year. Frequently, forestry

comptroller. However, most reimbursements to forest landowners for cost-share practices are less than $10,000 and thus not filed with the comptroller’s office. Therefore, at the end of each fiscal year, the Forestry Fund appears to contain a surplus of unobligated money, but this money has been committed by IDNR to forest landowners for cost-share reimbursement. Because the accumulated requests of less than $10,000 have not been filed with the comptroller, the administration considers the money surplus

and has transferred it from the fund to the GRF. The IDNR routinely seeks spending authority for these funds that is less than the revenues that support it. This exacerbates perception that the funds are surplus. Landowners are detrimentally impacted by these sweeps. Either their payments are delayed or they receive no payments. Many landowners become aggravated at paying the 4 percent timber harvest fee, then not being able to implement forest programs because the Forestry Fund lacks money. The fund sweeps have been extensive. From 2004 through 2009, about $2.7 million was swept from the fund. IFA initiated a Freedom of Information Act (FOIA) request for an accounting of the revenues and expenditures related to the fund. Not only did the FOIA information show the sweeps, it also showed the state accounting process is very complex. This, in turn, has raised additional questions about the use of these funds. Over the last several years with state budget problems, “creative accounting” has come into play. Many suspect that creative accounting has become generally accepted accounting practice for some state agencies. In the interest of public openness and accountability, Illinois needs to hold all state programs to the highest standard of transparency. IFA encourages IDNR to adopt this standard. The IFA’s mission is “to act on issues that impact rural and community forests and to promote forestry in Illinois.” To learn more about IFA, go online to {www.ilforestry.org}. John Gunter is a Region 4 director of the Illinois Forestry Association. His e-mail address is jegunter40@frontier.com.

Stinging advice about handling colorful caterpillars When most people think of stinging insects, bees, wasps, and ants come to mind. At one time or another, one or more of these Hymenoptera has stung most people. Such an event produces a very memorable moment. And that is good for the insect! After such an encounter, most animals, including humans, try to avoid stinging insects. Bees, ants, and wasps sting by injecting poison through a stinger. The insect’s stinging structure is a modified TOM ovipositor, the TURPIN egg-laying apparatus of female insects. This means only female insects can sting. However, another group of insects — caterpillars — also sting. The sting of caterpillars

is entirely different, although sometimes no less painful, than the sting of bees. A caterpillar’s sting is delivered by a hair or spine on its body, not through a modified egg-laying structure. The stinging devices of caterpillars are called urticating hairs. Urticating hairs are hollow, spine-like structures that connect to poison sacs under the caterpillar’s skin. These hairs can puncture and embed in a soft material, such as human skin. When that happens, the hair breaks off from the caterpillar, and a dose of poison is transferred through the hollow hair. Some plants also possess these defensive stinging hairs. The most widely recognized of these plants are appropriately called stinging nettles. Most people are familiar with the burning sensation that occurs when one touches the

leaves of a stinging nettle plant and consequently understand how the plant’s system works for protection. Caterpillars with stinging hairs occur in at least 11 insect families within the order Lepidoptera — the butterflies and moths. Most caterpillars with stinging hairs turn into moths, including those called tiger moths, tussock moths, and the giant silkworm moths. In general, human and caterpillar encounters of the stinging sort increase in the late summer and early fall when caterpillars have completed feeding and begin leaving food plants to search for a place to pupate. But the insects are not itching for trouble. That is why most stinging caterpillars are strikingly marked in bright colors and patterns. Such markings are known as “warning colors” by scientists and are

intended to send the message that the insect is dangerous to touch. One of the more common of the stinging caterpillars is known as the saddleback caterpillar. This caterpillar is about an inch long with prominent horns and numerous bristles. It is brown at the ends with a green middle marked with white so that the insect appears to have a saddle and blanket on it. This bright-colored caterpillar turns into a rather dull-colored brown moth. Another stinging caterpillar belongs to the group of moths that are called giant silkworm moths. The io moth, one of the smaller moths in this group, has a caterpillar with stinging hairs. As one widely used entomology textbook states, “This larva should be handled with care, for the spines sting.”

A caterpillar sting might not be as painful as a bee or wasp sting, but it does cause burning and itching followed by swelling, redness, and a rash. What should you do if you are stung by a caterpillar? First, remove as many stinging hairs from your skin as possible by sticking and removing with tape or washing the affected area thoroughly. Apply a cold pack to reduce swelling. In rare cases exposure to insect stinging hairs might result in an allergic reaction with extensive swelling and rash. In such cases, a doctor should be consulted. In most cases, though, encounters with stinging caterpillars result in a short period of discomfort and a lesson learned. Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.