April 15 2013

TWO UNIVERSITY professors testified on the far mland assess law before the House Revenue and Finance Committee last week in Springfield. ...................3

BIOFUELS INTERESTS converged on Washington last week in an effort to defeat legislation that could affect the Renewable Fuel Standard (RFS2). .............................4

T H E A M E R I C A N FA R M B u r e a u Fe d e r a t i o n l a s t w e e k released a new farm bill proposal it hopes will satisfy Congress and farmers. .........................................5

Obama budget plan seeks $38 billion ag cut

Payments, premium subsidies targeted Monday, April 15, 2013

BY MARTIN ROSS FarmWeek

The Senate came to the table last year with $23 billion in proposed commodity, conservation, and nutrition program savings in hand.

The House Ag Committee anted up another $12 billion in “food stamp” savings.

The White House last week attempted to deal a new hand, placing farm programs and protections squarely in its sights.

President Obama’s new fiscal 2014 budget plan seeks $38 billion in net ag savings over the next decade, including $29.7 billion in cuts provided by direct payment elimination.

USDA’s proposed $146-billion budget directs a $11.7-billion reduction in federal crop insurance funding, with a 3 percent reduction in premium subsidies for policies in which the government provides more than 50 percent of the premium. That move alone was projected to save $4.2 billion over two years.

The Obama plan proposes saving $3.2 billion through a 2 percent reduction in premium subsidies for revenue policies

that cover upward price movements at harvest. A harvest price election is now automatic with Revenue Protection coverage.

Proposed adjustments in program administrative expenses and insurer rates of return offer an added $4.2 billion in savings.

At the same time, the White House budget offers $1.3 billion for beginning farmers, bioenergy, specialty crops, and organic agriculture and proposes to extend selected livestock disaster programs for 20142018.

Even the original $23 billion in proposed ag cuts was “way more than our fair share” of total budget reductions, American Farm Bureau Federation policy specialist Mary Kay Thatcher told FarmWeek.

“What other sector’s offering that kind of funding reduction and putting part of it toward budget reduction?” she posed.

Because direct payment spending actually comes to $49 billion over 10 years, the Obama plan provides for some form of replacement commodity program, Thatcher noted.

However, she said the need to meet presidential spending targets would make formulating

an effective program “almost impossible.”

Thatcher questioned the extent to which the president’s plan would impact spring Ag Committee farm bill debate.

She dismissed rumors that

Congress might move for a second 2008 farm bill extension this fall, given Senate Majority Leader Harry Reid’s (D-Nevada) stated refusal to re-extend any measure that includes direct payments.

Thatcher said she sees “real potential to pass a farm bill without decreases in current (crop insurance) funding.”

Farm state lawmakers recognize

TOSS FOR SUCCESS

See Cut, page 5

FFA members tossed washers in an attempt to win cookies from the Illinois Farm Bureau Young Leader Committee during the recent IFB Youth Conference in Springfield. Looking on left to right in white shirts are IFB Young Leader Committee members Matthew Starr, Nauvoo, District 9; John Klemm, Lincoln, District 11; and Matt Rush, Fairfield, District 17. About 500 FFA members attended the conference. See a video from the Youth Conference at {FarmWeeknow.com}. (Photo by Cyndi Cook)

Thunderstorms limit fieldwork; more rain in forecast

BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

Three sections Volume 41, No. 15

Farmers in Illinois made little to no progress prepping fields or planting their crops last week as heavy rains saturated much of the state.

A line of thunderstorms which produced some localized flash flooding dumped 1 to 3-plus inches of rain. Power outages and damage to trees, homes, and outbuildings also were reported as the storms produced strong winds and hail at some locations.

“Nothing has been planted around here yet,” said Mark Kerber, a FarmWeek Cropwatcher from Livingston County. “We have water standing in fields. This will just delay us even more.”

Kerber’s farm last week received 2.7 inches of rain. Randy Anderson, a Cropwatcher from Saline County in Southern Illinois, last week reported 1.5 inches of rain on his farm.

Cropwatchers will begin filing their reports in FarmWeek on May 6.

“All field activity has come to a stop,” Anderson said last week. “There had been some fieldwork (including disking, chemFarmWeek on the web: FarmWeekNow.com

ical applications, and corn planting)” prior to the storm.

Illinois from March 11 to April 11 received 2 to 6-plus inches of precipitation. The moisture has recharged soils but kept farmers out of the fields.

Soil temperature readings late last week averaged in the mid40 degrees in Northern Illinois, mid-50s in Central Illinois, and low- to mid-60s in Southern Illinois.

“We’re looking at at least 10 days out (from the start of fieldwork activity), said Kerber, who hopes for drier conditions soon.

“It’s the planting season, not the growing season. We don’t need this much rain right now,” he continued. “There’s the old saying, ‘Plant in mud and the crop’s a dud. Plant in dust and your bins will bust.’”

The forecast on Friday was not conducive to planting as more rain was predicted the first half of this week.

“One of our main concerns right now is getting pre-emergence chemicals down on no-till ahead of troublesome weeds, See Rain, page 4

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

Quick Takes

FarmWeek Page 2 Monday, April 15, 2013

PRATT MAKES 4-H DONATION — Lee County farmer Katie Pratt of Dixon last week donated $2,500 to 4-H clubs in her county. She received the money from the U.S. Farmers & Ranchers Alliance as one of its national Faces of Farming and Ranching.

“Lee County Extension Foundation will use this donation to give back to the 4-H community,” Pratt said. Each of the 10 clubs in the county will receive $200. The remaining $500 will be used by the foundation for future projects.

“Four-H continues to be a big part of my family’s life,” she said. “I gained so much from my time as a member. I want to help clubs continue their strong tradition in our community.”

GOLD MEDAL AGRICULTURE — For Olympic gold medalist Jackie Joyner-Kersee, last week’s St. Louis Agribusiness Club monthly luncheon meeting struck a strong personal note. Joyner-Kersee attended the meeting to learn more about area community gardening and urban agriculture projects.

She said she is excited about incorporating more ag-gardening projects at the Jackie Joyner-Kersee Center in her hometown, East St. Louis. The center serves youth and families of the surrounding Illinois towns of Alroton, Brooklyn, Centreville, and Washington Park.

Michael Sorth, executive director of Gateway Greening and a presenter at the monthly club meeting, addressed Gateway’s gardening and urban agriculture work throughout St. Louis and St. Louis Joyner-Kersee County. Next up for Gateway is an urban ag project to be located at the historic St. Louis Stamping Co. on the north riverfront.

“The presentation was in line with everything we have been discussing about trying to teach young people about where their food comes from,” Joyner-Kersee told RFD Radio’s Rita Frazer. “I grew up in an area that was a food desert, where we didn’t have a local grocery store to go to.”

IMMIGRATION REFORM — Naperville Democrat U.S. Rep. Bill Foster joined Congress’ New Democrat Coalition last week in releasing a framework for what he termed “common sense” immigration reform. The New Democratic Coalition is a group of pro-business Democrats that reportedly form the largest moderate caucus in the U.S. Congress.

“For years our immigration system has been left to rot,” Foster said. “Our system depends too much on detention and deportation at a huge cost to governments and families.

“It is past time for Congress to take action to pass common sense immigration reform that provides law enforcement officials with the tools they need to secure our borders, a tough but fair path to citizenship for the 11 million undocumented immigrants already in the country, and a more secure and efficient system for legal immigration.”

(ISSN0197-6680) Vol. 41 No. 15

April 15, 2013

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RIVERS

Groups seek lock upgrade measures in WRDA bill As a key Senate committee unveiled long-awaited water projects legislation, farm and river interests were taking an all-hands-on-deck approach to addressing long-awaited needs on the Mississippi River.

The Illinois Corn Growers Association (ICGA) issued a member “call to action” seeking support from Springfield Democrat Sen. Dick Durbin and Highland Park Republican Sen. Mark Kirk for inclusion of Senate Resolution 407, The River Act of 2013, into the Senate Water Resources Development Act (WRDA).

The Senate Environment and Public Works Committee last week unveiled its version of WRDA, which originally was passed in 2007 and authorized as-yet-unbuilt new locks. Waterways Council Vice President Paul Rohde reported “we’re at ‘all-hands-on-deck’” in preparation for WRDA floor debate.

The River Act is aimed at “getting some action moving on waterways infrastructure,”

ICGA President Paul Taylor said in an RFD-FarmWeek interview. The measure would direct the U.S. Army Corps of Engineers to prioritize projects and improve current public/private partnerships to fund lock upgrades.

Key to the proposal is a shipper-supported hike in barge fuel taxes to help fund lock improvements.

“Suddenly, we’re starting to see some interest,” noted Taylor, an Esmond producer.

“There’s a realization that the infrastructure needs to be worked on. Now’s the time to strike, while the iron’s hot.”

WRDA is moving slower in the House, but prospects were good for inclusion of the Waterways are Vital for the Economy, Energy, Efficiency, and Environment (WAVE4) Act, the House companion to The River Act, Rohde told FarmWeek at an Illinois Soybean Association (ISA) transportation briefing last week.

The Senate WRDA package already includes the Water Infrastructure Finance and Inno-

vation Act, which would provide loans to state and local agencies for water supply, wastewater, and flood control projects under a $50-millionper-year pilot program.

Completion of Panama Canal improvements will enable exporters to ship “more tonnage at a lower cost,” but U.S. upgrades “in size, capacity, and efficiency” are necessary to realize that potential, Taylor argued.

Informa Economics analyst Ken Eriksen told FarmWeek at ISA’s transportation briefing that many Midwest locks are needing “hip replacements, knee replacements.”

“New projects that have construction or major rehab authorizations will not get started until about 2050-2070 at the very earliest under current time schedules,” Eriksen said.

“Meanwhile, we have a lot of maintenance that’s been deferred — $565 million worth here in Illinois.

“We’re looking at trying to pay down those projects and certainly moving them forward.”

At an Illinois Soybean Association (ISA) transportation briefing last week, Informa Economics Senior Vice President Ken Eriksen underlined the impact of local, regional, and nationwide infrastructure issues on Illinois export capabilities and the U.S. economic bottom line.

The Bloomington meeting focused on deficiencies in and commercial access via local roads and bridges, truck weights and their potential role in alleviating driver shortages, and the need on the near term to arrest deterioration of Illinois/Mississippi River locks.

ISA discussed efforts to explore “sustainable” containeron-barge transportation, preserve soy product and meat

quality from farm to export destination, and address regulations that could limit or increase the cost of commodity movements.

The goal is to help soybean growers move an annual 600 million bushels of beans to market by 2020.

Illinois farmers and experts from the transportation-logistics sectors stressed the importance of public cooperation that includes congressional lawmakers currently considering waterways improvement measures and state lawmakers and local officials who can better pave the way for economic/export growth starting at “the first mile.”

Ag and shipping interests and policymakers must view the nation’s infrastructure re-

sources “holistically,” developing a system that suits diverse geographical needs but that smoothly transitions goods among roads, rail, barges, and ports, Eriksen told FarmWeek.

Local bridge upgrades could return more than $10 in economic revenue for every $1 invested, Eriksen said.

Waterways improvements could generate $1.2 billion over the next 15 years, and allowing greater truck weights would enable fewer truckers to haul more, he suggested.

And, as recent Upper Mississippi low-water concerns emphasized, those investments would help growers and consumers avoid serious costs that currently are one disaster away. — Martin Ross

• Jim Bower of Bower Trading • Tim Maiers, Illinois Pork Producers Association

Friday: • Sara Wyant, Agri-Pulse publisher • Fred Yoder, Ohio farmer and winner of “Champion of Change Award” • Monica Nyman, St. Louis District Dairy Council nutrition educator • Storytime with Alan Jarand

BY MARTIN ROSS FarmWeek

Illinois faces transportation issues from first to final mile

Tuesday: • Ag weather with Chesapeake Meteorology • Illinois Deputy Gov. Cristal Thomas • Tricia Stiller, executive director of the Downtown Bloomington Association • 4F’s energy report Wednesday: • Tim Schweizer, Illinois Department of Natural Resources

Thursday: • Paul Taylor, president of the Illinois Corn Growers Association • Brian McGill, marketing and member development supervisor for the IAA Credit Union • Illinois Farm Bureau President Philip Nelson

To find a radio station near you that carries the RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”

STATE

Page 3 Monday, April 15, 2013 FarmWeek

Revenue committee discusses farmland assessment law

BY KAY SHIPMAN FarmWeek

Two university professors outlined how Illinois assesses farmland and how proposed changes would work in testimony before the House Revenue and Finance Committee last week in Springfield.

Bruce Scherrick, University of Illinois agricultural economics professor and a member of the Illinois Farmland Assessment Technical Advisory Board (FATAB), explained the complex system used to value each soil type and the assessment formula.

Rep. Barbara Flynn Curry (D-Chicago) asked if other states use similar methods.

Scherrick replied that all states have some form of income-based farmland assessment, but “we have a more sophisticated approach than our neighboring states.”

Rep. Frank Mautino (DSpring Valley) noted disparity has developed because the current system applies a 10 percent limit to value increases and decreases. Mautino is sponsoring HB 2651 that proposes changes to better reflect different soils’ pro-

Illinois Farm Bureau President Philip Nelson and Illinois Agriculture Director Bob Flider last week discussed several issues, including a proposed amendment to the state farmland assessment law.

Three farmland assessment experts answer questions about the state’s assessment methods posed by members of the state House Revenue and Finance Committee last week in the Capitol. Left to right are Steven Kraft, Southern Illinois University professor emeritus of agribusiness economics and Illinois Farmland Assessment Technical Advisory Board (FATAB) chairman; Bruce Scherrick, University of Illinois agricultural economics professor and FATAB member; and Bruce Huber, president of the Illinois Society of Professional Farm Managers and Rural Appraisers.

ductive capabilities.

Scherrick explained the disparity in values increased because “10 percent of a large number is a large number,” while 10 percent of a small number is still a small number.

Committee Chairman Rep. John Bradley (D-Marion)

asked how “to lessen the blow” on those with less productive soils if the law is amended.

Scherrick stated the increase on less productive soils “is not expected to be as big an increase as has been implied” by some people.

Corn seedlings, planted in soil from University of Illinois herbicide evaluation plots, show the damage herbicide carryover can cause. The corn on the left grew in untreated soil while the middle and right pots contain treated soil. (Photo by Aaron Hager, University of Illinois)

Threat of carryover damage remains

The potential for crop damage from herbicide carryover remains despite recent rains, Aaron Hager, University of Illinois weed scientist, told FarmWeek last week.

“We did get moisture. But unless the soil is warm enough, we’re not going to see (herbicide) degradation,” he said.

Herbicides vary in soil persistence. The crop rotation posted on the herbicide label is one indication of persistence. Intervals are longer for herbicides that persist longer and for crops that are more sensitive to herbicide residues,

according to Hager.

He explained two factors influence herbicide carryover: moisture and soil temperatures warm enough to spur microbial activity.

“I am still confident that we will see carryover this year,” because of last year’s drought conditions Hager said. However, researchers do not anticipate the damage will be as widespread as they had feared last July because of the moisture received, he added.

Researchers are concerned farmers think the potential threat has passed because of the rains received last fall and

this winter and spring, Hager said.

“There is no way to prevent it (carryover) other than plant the same crop (in the field) as last year,” he said.

Shallow tillage can help distribute a herbicide more evenly across a field and enhance degradation, especially when soils are warm and moisture is adequate, said the weed scientist.

Early planting or planting a crop that is sensitive to the herbicide applied last season increases the likelihood of injury, Hager said. — Kay Shipman

Under the proposed amendment, the assessment process would phase in changes to the equalized assessed value by soil productivity index (PI). Those changes would not exceed 10 percent of certified assessed value of the state’s median soil PI. “I thought the proposal would change the imbalance slowly over time,” said Curry, in order to provide relief to landowners. Scherrick confirmed the changes would occur slowly over time.

“This hearing was another step in the process of educating legislators on the complexity of the farmland assessment process and Illinois Farm Bureau’s support for maintaining the integrity of the law,” said Kevin Semlow, IFB director of state legislation.

Also testifying were Steven Kraft, Southern Illinois University professor emeritus of

How proposed change would work If a proposed amendment to the state farmland assessment law passes, all soils — regardless of their productivity index (PI) — would increase by 10 percent of the median soil PI. The equalized assessed value of a 111 PI (the median soil) is $184.83.

A 10 percent change would increase the certified values for all soils by $18.48. That amount would be added to each soil’s 2013 certified value. agribusiness economics and the FATAB chairman, and Bruce Huber, president of the Illinois Society of Professional Farm Managers and Rural Appraisers.

Buffer Partnership seeks landowners, buffer sites Landowners and their buffer strips help control erosion and protect water quality in Illinois as a statewide effort grows.

The Illinois Buffer Partnership, which includes the Illinois Farm Bureau and Trees Forever, continues to seek landowners who are interested in planting buffers along streams and in wetlands.

“We’re always looking for interested farmers to participate,” Shannon Ramsay, founding president and chief executive officer of Trees Forever, told FarmWeek.

“We recommend they let us know now and sign up online.”

While sites for new buffers are accepted, a participant also may have an existing buffer, according to Ramsay.

Applicants should be interested in diversifying the plants used in buffers and in hosting a field day at the site.

Ten sites around the state were selected for 2013, and planting is planned this spring. The sites are in Bureau, Jersey, Kendall, Livingston, McHenry, McLean (two), Mercer, Perry, and

Saline counties.

Another component of the buffer initiative is GROWMARK’s seed costshare program to participating landowners, Ramsey noted.

For more information or to register, go online to {treesforever.org}, call 800369-1269, or email Debby Fluegel, Trees Forever Illinois coordinator, at dfluegel@treesforever.org. — Kay Shipman

BUFFER NUMBERS

3,949.5 Acres of buffers and conservation plantings in Illinois.

885,622 Trees and shrubs planted in Illinois buffers and conservation sites.

1,399 Landowners and volunteers involved in planting.

50.1 Miles of Illinois streams protected by buffers.

Source: Trees Forever

ENERGY

FarmWeek Page 4 Monday, April 15, 2013

House lawmakers launch direct attack on RFS2

BY MARTIN ROSS FarmWeek

Biofuels interests converged on Washington last week in an effort to defeat new legislation that the national Renewable Fuels Association (RFA) said “would effectively end the Renewable Fuel Standard (RFS2)� and, potentially, next-generation biofuels development and demand.

The RFS Reform Act — introduced by Reps. Bob Goodlatte (R-Va.), Jim Costa (DCalif.), Steve Womack (R-Ariz.), and Peter Welch (D-Vt.) — would reduce RFS2 mandates by 42 percent over the next nine years and limit federal biofuels targets to renewable biomass and other advanced biofuels.

Supported by a coalition of 13 food industry groups and national beef and pork organizations, Goodlatte suggested that through RFS2, “government is placing its big thumb on one side of the scale between the use of corn for food and the use of corn for fuel.�

RFA President Bob Dinneen argued Goodlatte’s bill employs “backwards, silly, circular logic,� potentially reversing efforts to reduce dependence on foreign oil.

Biofuels representatives from Illinois, Colorado, Iowa, Kansas, Missouri, and Nebraska were on the Hill as news of the measure broke, Growth Energy CEO Tom Buis report-

ed. Growth Energy represents numerous ethanol producers.

The RFS2 already is a focus for the House Energy Committee, which collected input on the mandate from groups that included Illinois Farm Bureau and the Illinois Corn Growers Association.

The RFS2 has come under “intense attacks, often based on misinformation� about industry efforts to expand ethanol use though E15 blends, Buis said.

Ethanol today displaces roughly 10 percent of the nation’s gasoline. According to Jeff Broin, executive chairman of top ethanol producer Poet, ethanol use could rise to 30 percent by 2022 under RFS2 targets.

But that potential will not be

reached “if Big Oil is successful in eliminating the RFS2 and preventing our access to consumers,� he warned.

FarmWeekNow.com

Listen to Gen. Wesley Clark’s comments about the efforts to weaken the RFS program at FarmWeekNow.com.

Broin, whose plan is to reduce ethanol costs by “colocating� corn and cellulosic production, stressed that “basically, the volume of ethanol in the market is controlled by the industry that makes the other product — the oil industry.� “Oil interests have done everything they can to prevent consumer access to E15,� he said.

“They’ve done things like erecting regulatory and legal challenges and launching a very expensive PR campaign of disinformation. While we are slowly succeeding, Big Oil is now trying to really throw a Hail Mary by getting Congress to pass legislation to repeal the RFS.�

RFS2 elimination would block a projected 136,000 new jobs created through E15 demand, he said. Growth Energy co-chairman and retired U.S. Army Gen. Wesley Clark called biofuels development “a big step forward to America’s energy independence,� and thus “a national security issue.�

Clark noted recent Senate preservation of funding for mili-

tary advanced biofuels development designed to lower Department of Defense energy costs. “You can’t produce an affordable, reliable fuel in penny packet quantities,� he told FarmWeek. “These are commodity projects. You have to have scale. The RFS2 offers the opportunity for biofuels technology to scale up. That’s why it was essential to start with corn ethanol. It’s the base. “We’re laying out the market structure — how to move it, how to bill it, how to protect it, how to build automobiles for it.

Then you move to cellulosics. “You have to get into the marketplace and build scale before you can bring down price.�

Shimkus: RFS2 advocates must present their case Debate over the Renewable Fuel Standard (RFS2) may prove contentious, but House Energy and Commerce Committee member John Shimkus maintains ag and biofuels interests will have the chance to defend what’s “doable� in reaching RFS2 goals.

The U.S. Environmental Protection Agency (EPA) recently upheld 2013 RFS2 corn ethanol targets as posing little hardship for livestock producers or consumers.

But Shimkus, a Collinsville Republican, said concerns in the wake of the 2012 drought “have affected this debate.�

Some lawmakers have come to question “what we are really capable of doing, science-wise,�

to achieve prescribed next-generation biomass/“advanced biofuels� goals, he told FarmWeek.

The initial RFS, created in 2005, directed 36 billion gallons of biofuels use by 2022.

Revisions in 2007 refined targets for next-generation biofuels, and Shimkus said his committee hopes to sort the “realistic vs. the unrealistic.� “I think all sides will get a chance to present their case on the benefits and challenges. “We have to find a way to protect the RFS as it was originally intended. I think there will be a consensus that some adjustment has to be made. We’re going to do all we can to ensure that current market signals for

what’s doable as far as production are kept at promised levels.�

Countering RFS2 critics who contend the ethanol market is draining food crop reserves, Poet ethanol company Executive Chairman Jeff Broin argued “a tremendous amount of (ethanol) feedstock is available� to meet future RFS2 demand.

That includes existing corn stocks, grain sorghum, and “a billion tons of cellulose that goes to waste in this country every year,� said Broin, whose Iowa company is launching joint corn/corn cobbased cellulosic production.

Co-location of conventional and cellulosic biofuel facilities offers “extreme efficiencies� that can bring down the cost of

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Continued from page 1 such as marestail, which are hard to control,� Anderson said.

Many wheat growers at least were able to apply nitrogen to their crop in recent weeks, he said. “There are a few, scattered (wheat) fields that lack nitrogen,� he said. “But most wheat

cellulosics and provide a new “revenue stream� for farmers, he told FarmWeek.

In terms of market growth, the Illinois Corn Growers Association and Illinois Farm Bureau recently responded to a series of Energy and Commerce questions regarding the “blend wall� — the point at which use of standard 10 percent ethanol reaches market saturation.

When the RFS2 was revised in 2007, the oil industry, the ethanol industry, agriculture, environmental groups, and (EPA) understood that to achieve federal goals, “the 10 percent blend wall would have to be removed,� they stated. — Martin Ross

looks to be in good condition.�

The majority of wheat in the state (72 percent) last week was rated good to excellent.

Nationwide, however, just 36 percent of the winter wheat crop last week was rated good to excellent with 30 percent in poor or very poor condition.

THE FARM BILL

Page 5 Monday, April 15, 2013 FarmWeek

AFBF supports three-pronged farm bill plan

BY MARTIN ROSS FarmWeek

AFBF arrived at a modified version of “STAX,” an insurance-like program originally conceived by the Senate as a carve-out for cotton pro-

The American Farm Bureau Federation (AFBF) last week released a new farm bill proposal reportedly designed to satisfy congressional budgeeters and growers across the U.S. Illinois Farm Bureau President Philip Nelson was reserved in his reaction to AFBF’s “three-pronged” approach to meeting Senate ag budget targets. The plan involves $23 billion in 10year program savings, which incorporates farm income, target price/market loan, and crop insurance protections.

In attempting to devise an income protection program that cuts across commodities,

ducers.

“This is a starting point,” Nelson maintained last week.

“They put something on the table to try to be proactive within the budget, while at the same time trying to provide some income protection.

“I’d just say, on behalf of us in Illinois, crop insurance is job one. That’s our main focus — to try to keep the

Amid the traditional Midwest practice of producing primarily corn, soybeans, and wheat, cultural changes are occurring and ag subcultures continue to emerge.

Metro consumers are devouring “local” food, and farmers’ markets and supermarkets are segregating organic and non-organic and conventional and “heirloom” produce. USDA and others are working to nourish urban food “deserts.”

As House and Senate ag committees grapple with formulating a 2013 farm bill, Rep. Chellie Pingree (D-Maine) and Sen. Sherrod Brown (D-Ohio) have reintroduced their Local Farms, Food, and Jobs Act. The proposal would expand and fund farm bill programs that aid in production and marketing of local, organic, and “healthy” foods.

Pana organic/specialty grower Jack Erisman sees the

farm bill playing a key role in fostering new diversity in Illinois agriculture.

“I believe specialty markets in most cases have the capacity pretty much to survive on their own,” Erisman told FarmWeek.

“They’re higher-value markets, usually; they’re more locally or regionally centered. They seem to have their own niches or internal support systems.

“The segments that probably need as much support as anyone at a federal level are the startups, the small farms, the food deserts, those kinds of things.”

The Pingree-Brown measure bridges seven farm bill titles and addresses crop insurance, credit, nutrition, rural development, research/Extension, horticulture, and livestock concerns.

It would replenish programs left without funding under recent 2008 farm bill extension, including the Farmers Market Promotion Program, National

Philip Nelson

same type of protection levels we have this year in the next farm bill.”

As the Senate focused last year on enhancing revenue protections in lieu of direct payments, the House Ag Committee eyed a two-tiered income-or-price support option amid concerns expressed by producers in the South.

STAX was created as the Stacked Income Protection Plan for Upland Cotton. As repurposed by AFBF, STAX — a non-catastrophic “shallow loss” program that would be offered as a “buy-up” with crop insurance — would be open to all program crops as well as apples, potatoes, tomatoes, grapes, and sweet corn.

Farmers could opt to protect yield or crop revenue. In order to meet budget constraints, AFBF proposes reducing the original 80 percent STAX “premium” subsidy to 70 percent.

No STAX payments would be made until county average revenues or yields fell by 10 percent from historic levels.

Meanwhile, a target price program would be offered for all commodities except cotton. Target price levels would be based on marketing-year average prices from 2007 through 2011 and those projected by the Congressional Budget Office for 2012-2016.

Reportedly “to provide general equity across crop

sectors,” 2007-2016 average prices would be reduced by 25 percent for corn and soybeans and 15 percent for wheat.

AFBF analysis suggests 80 percent of program corn and soybean growers would opt for STAX, with the balance electing to receive price protection.

“AFBF portrays this as a three-legged stool, but as you start digging into it, I don’t know if you can call marketing loans one of the legs,” Nelson added.

“At the levels marketing loans are set — and (AFBF) is not proposing moving them — it’s not that meaningful a level of protection, and not many people are going to use it.”

Organic Certification CostShare Program, and ValueAdded Producer Grants.

National Sustainable Agriculture Coalition policy Director Ferd Hoefner hailed the bill, calling local agriculture “a major driver in the farm economy.” He noted many specialty producers face “significant infrastructure, marketing, and information barriers.”

Erisman manages an organic rotation that includes corn, soybeans, clovers, rye seed, and

oats for the equine market. He raises popcorn and is “experimenting” with red corn.

Erisman sees untapped opportunities to link “consumable food production” with communities, such as rural plots providing fresh produce for local school cafeterias.

At the same time, the increased value of and weatherrelated risks to specialty crops have heightened interest in more crop-specific insurance protections. Farm bill support is cru-

cial to USDA Risk Management Agency support in developing new crop insurance products.

Despite availability of lowcost generalized specialty crop coverage under the federal Noninsured Crop Disaster Assistance Program, Erisman noted new complexities arising from production segmentation such as risks to non-GMO crops from biotech crop pollen drift.

“Now, it’s a different game,” he maintained. — Martin Ross

Farm bill crucial in promoting local food sector

Cut

Continued from page 1 that crop insurance is ”without a doubt the most important safety net we have,” she said.

“You might get greater agreement on that from your guys in Illinois than I’d get from a rice or peanut producer,” Thatcher said.

“But even those guys know crop insurance is what’s going to happen in the future and that we need to continue to improve the program, not detract from it.”

PRODUCTION

FarmWeek Page 6 Monday, April 15, 2013

More bearish news for crop markets — USDA boosts stocks

BY DANIEL GRANT FarmWeek

The crop markets last week absorbed more downward pressure as USDA raised its stocks estimates for corn and wheat.

USDA in its monthly world ag supply and demand estimates raised ending stocks by 125 million bushels for corn and 15 million bushels for wheat.

Ending stocks as of April 10 totaled 757 million bushels of corn and 731 million bushels of wheat. Soybean ending stocks were left unchanged at 125 million bushels.

“There’s nothing I see that’s positive in any of the numbers,” Peter Georgantones, account executive with Roy E. Elliott Futures, said during a teleconference hosted by the Minneapolis Grain Exchange.

“Things are not as tight in the corn (or wheat) market.”

USDA late last month surprised many traders with larger-than-expected quarterly stocks estimates for all three

crops, which sent the markets in a free-fall from historically high levels.

Last week the ag department lowered feed use by 150 million bushels of corn and 15 million bushels of wheat. Corn exports were slashed 25 million bushels to just 800 million bushels.

“We’re going in the wrong direction if you’re a bull,” Georgantones said. “The real story is demand. We’re not selling any wheat right now and corn demand is poor. $7.50 corn did a heck of a job rationing (demand).”

On the bright side, ending stocks of corn weren’t as high as the average trade guess (824 million bushels). USDA also boosted its estimate of corn used for ethanol by 50 million bushels.

“Ethanol use is starting to pick up,” the market analyst noted.

Meanwhile, old-crop beans should remain tight. USDA left ending stocks unchanged and raised exports by 5 million bushels to 1.35 billion bushels.

The season-average price range of beans was left unchanged ($13.80 to $14.80).

The season-average price estimates were lowered 20 cents for corn, to a range of $6.65

to $7.15 per bushel, and a nickel for wheat, to a range of $7.70 to $7.90.

Crop prices could plummet lower if yields are near trend levels this season, according

to Georgantones.

“New-crop corn could be down to $4 (per bushel) and beans could be down to $10, provided we have good crops,” he added.

The outlook for U.S. livestock producers improved in recent weeks as a significant drop in crop prices eased the cost of feed inputs.

But pork producers still could struggle to return to profitability due to slumping export demand.

U.S. pork exports the first two months of this year were down 14 percent in volume and 12 percent in value compared to the same time last year.

Shipments of U.S. pork to Russia declined 50 percent in February. And that market now is closed due to concerns about the use of ractopamine, a feed additive used to produce lean meat.

Exports to China also have declined as the Chinese seek

third-party verification that U.S. pork is ractopamine-free.

“Russia consumes about 1.25 percent of (U.S. pork) production and China about 4 percent,” said Steve Meyer, president of Paragon Economics. “You add those two up and it could have a 10 to 15 percent impact on (hog) prices.”

China and Hong Kong last year purchased about $886 million of U.S. pork while sales to Russia totaled nearly $300 million.

Exports last year added about $56 per head to the price of hogs in the U.S., according to the National Pork Producers Council.

The hog price outlook this year weakened due to slumping exports. But profitability models improved in recent weeks as crop prices nosedived in the wake of larger-than-expected inventories.

“We (in the livestock sector) got a lot of help on the feed cost side,” said Meyer, who

estimated hog returns in recent weeks improved from minus$19 to minus-$12 per head.

Estimated costs for farrowto-finish production were near $70 per live hundredweight in the first quarter, according to Chris Hurt, Purdue University Extension economist.

“Now my cost estimates have fallen to $65.50 for the second quarter and $63 for the third quarter,” Hurt said.

Corn prices in recent weeks declined by more than $1 per bushel while soybean meal prices slipped by about $30 per ton.

The pork and poultry industries currently are geared up to increase production this year due in part to improved feeding economics.

“We’re still sitting in position to grow output, but everything hinges on the weather,” Meyer added.

“Everyone is kind of betting on good weather and a good crop this year.” — Daniel Grant

Sluggish pork exports could delay return to profits

Cattlemen: Watch for grass tetany

As pastures start to green, cattlemen need to be aware of the risk of grass tetany among grazing animals, warned Ron Lemenager, a Purdue Extension beef specialist.

Grass tetany is a nutritional disease that cattle get from grasses high in water content and potassium and low in other nutrients, such as magnesium and calcium. Older cows that have just calved and are in peak lactation are the most susceptible.

The risk increases in pastures that have been heavily fertilized with nitrogen.

The condition is treatable if caught early enough, but prevention is best, Lemenager said.

The easiest way to prevent FarmWeekNow.com grass tetany is to feed the cows View a video about grass a high magnesium mineral tetany problems with cattle at before they go on grass, he said.

FarmWeekNow.com.

The mineral mix should have a minimum of 8 percent magnesium and could be 12 percent or higher.

The problem is cattle don’t like to eat magnesium oxide, a typically high magnesium source. Commercial mineral mixes have an added ingredient to make the magnesium more palatable.

The peak season for grass tetany is April through early May. If a cow is stricken with grass tetany, the cattleman must act quickly because cows often die within two to three hours of showing the first symptoms.

Those symptoms include stumbling and staggering, trembling muscles, muscle twitches, excitability, stiff gait, and grinding teeth. Final stages are violent convulsions, coma, and death.

“The treatment is an IV administration of magnesium and dextrose, which is probably going to require veterinarian intervention,” Lemenager said. “So if you see one of those cows that’s acting a little funny, it’s probably time to call the vet and get this cow treated. If you wait, the next time you see that cow, she’ll probably be dead.”

More information about grass tetany is available from Lemenager’s video, “Grass Tetany: A Primer.” It is online at {thebeefcenter.com}. Click on the video link in the left column.

SAFETY

Page 7 Monday, April 15, 2013 FarmWeek

Safety program offering convenient training options

BY MARTIN ROSS FarmWeek

This season, Illinois farmers may find a bonus with their county Farm Bureau meeting. And if they can spare an hour, it could save their life or inspire them to help save others.

Over the past six months, more than 300 rural Illinoisans have participated in local safety training sessions sponsored by the Grain Handling Safety Coalition (GHSC), a diverse collection of university, industry, and farm/agribusiness interests including Illinois Farm Bureau.

Coalition goals are to highlight hazards associated with grain bins and related equipment and electrical systems and to recruit new community-based trainers in a hopedfor multiplier effect. The sessions are aimed at a broad audience that includes farmers, ag workers, elevator personnel, and even emergency responders.

After holding a series of winter sessions across the state, GHSC is gearing up for a post-planting push in June.

The program has proven popular with elevators, and in an attempt to expand farmer participation, the group plans to link future training with already scheduled events, such as Young Leader or local

farmland assessment meetings.

“If they’re coming for something else, we’re going to see if we can get them to stay for an hour of safety,” said IFB program manager and coalition member Peggy Romba. “We could use the opportunity of a county (Farm Bureau) board meeting to educate Farm Bureau directors.”

GHSC provides session trainers, materials, and onsite demonstrations, with county Farm Bureaus and their community partners supplying meals. Prospective trainers then undergo more intensive education.

University of Illinois Extension partnered with Pearl City Elevator to host a late February training session at the elevator’s Alliance Commodities facility. The high-roofed facility enabled GHSC trainers to demonstrate a bin “lifeline” system designed to prevent grain engulfment.

Roughly two dozen participants in the Stephenson County session included farmers, elevator workers, an area grain bin construction firm’s employees, and a local emergency 911 operator now looking to merge his existing farm rescue training group with the GHSC program.

While she participates in a number of regional safety pro-

Ag industry offering new training for community college ag students

The Illinois Fertilizer & Chemical Association (IFCA) in partnership with the Asmark Institute recently developed training for Illinois community college students enrolled in agriculture programs.

The course will be piloted April 30 for Lincoln Land Community College students at the new Asmark Institute Agricenter in west Bloomington.

Known as the Head Start Program, the course will prepare students to work at agricultural retail facilities.

The goals are to reduce workplace accidents and to help ag students meet safety and training requirements before they enter the ag retail workforce.

“One thing missing in the agricultural workforce is a variety of young, talented, and properly trained individuals prepared to enter the ag retail industry,” said Allen Summers, Asmark Institute president.

Topics to be covered include confined-space entry, forklift safety, blood-borne pathogens, anhydrous ammonia safety, working with hazardous materials, hazard communication, proper personal protective equipment, worker protection standards, fire extinguisher, and respirator basics.

The training satisfies requirement of the U.S. Environmental Protection Agency, U.S. Department of Transportation, the Occupational Safety and Health Administration, and the Illinois Department of Agriculture, according to Kevin Runkle, IFCA director of regulatory services.

Additional training programs will be offered if there is enough interest from other community colleges, Runkle said.

For information, contact Runkle at 309-827-2774.

grams, Freeport-based Extension program coordinator Nikki Keltner applauds the coalition’s novel approach.

“This program really deals

with keeping you safe,” she told FarmWeek. “Other programs I’ve been to around this area have focused on the rescue end of things.

“It was a great program.

The trainers showed such enthusiasm toward what could be a daunting dry topic that they actually made it fun.”

Lynn McClure of Macomb-based Western Grain Marketing — a member of the Grain Handling Safety Coalition (GHSC) — instructs participants in a recent Wabash Valley College GHSC training session on grain bin “lifeline” gear and its proper use. More than 300 individuals statewide have attended the safety courses over the last six months. (Photo by Doug Anderson, Wayne/White County Farm Bureau manager)

OUTREACH

FarmWeek Page 8 Monday, April 15, 2013

AG BOOK DONATION

The Livingston County Farm Bureau Women’s Committee recently donated two ag-related children’s books to 20 grade school libraries in the county. The books are from the Awesome Agriculture for Kids series and are entitled “Awesome Agriculture: Beef, an A-Z Book” and “Beef in the Story of Agriculture.” Women’s Committee member Lois Immke looks on as Saunemin Elementary School fourth graders Mason Rork and Courtney Read check out the new books. They are the children of Star and Andy Rork and Krissie and Jerry Read, respectively. (Photo courtesy of Livingston County Farm Bureau)

Stephenson and Tazewell FB leaders tour Chicago districts

Chicago High School for Agricultural Sciences Principal Bill Hook, second from right, shows visiting state legislators and county Farm Bureau leaders his school facilities. Left to right are: Tazewell County Farm Bureau member David King, Stephenson County Farm Bureau manager Bruce Johnson, state Sen. William Cunningham (D-Chicago), Hook, and Stephenson County Farm Bureau President Steve Fricke. (Photo by Christina Nourie)

Farm Bureau leaders from two counties recently joined for a tour of their adopted legislators’ Chicago districts.

Elected last fall, state Rep. Fran Hurley (D-Chicago) was matched with Stephenson County Farm Bureau through the Adopt-A-Legislator program. State Sen. William Cunningham (DChicago) was adopted in 2011 by Tazewell County Farm Bureau, whose leaders had their first tour of his district.

The visit included an eye-opening tour of the Cook County Jail that was arranged by Cunningham, a former chief of staff for the Cook County sheriff.

The Farm Bureau leaders toured the oldest part of the jail and heard about jail overcrowding and the need for technology upgrades. The Farm Bureau group and the corrections staff discussed the challenges faced by the staff.

The tour provided a unique opportunity to learn about public safety and criminal justice issues in Cook County and the state.

During lunch in Chicago’s Beverly neighborhood, the Farm Bureau leaders and legislators discussed many legislative issues related to agriculture and the state’s fiscal climate.

Chicago High School for Agricultural Sciences was the final tour stop. Principal Bill Hook and several students explained the school’s unique ag focus. The farmers met Chicago students who all plan to pursue college degrees in agriculture-related majors.

Farm Bureau leaders from both counties said they enjoyed the opportunity to not only discuss agricultural issues but also to learn more about the urban lawmakers’ legislative priorities. Both Cunningham and Hurley said they plan to visit the “adopted” farmers for farm tours later this spring and summer.

BY CHRISTINA NOURIE

Christina Nourie is the Illinois Farm Bureau northeast legislative coordinator. Her email address is cnourie@ilfb.org.

Compost workshop, field day slated

Livestock farmers, horse owners, and stable operators are encouraged to attend a May 21 composting workshop and field day at Western Illinois University’s (WIU) Livestock Center and Compost facility, Macomb. Individuals who register in advance will be provided lunch.

The event will start at 8:30 a.m. and conclude at 2 p.m.

Topics will include aerobic composting basics, site development, permitting, compost

use and quality control, and marketing. Participants will tour the WIU compost operation..

Sponsors include WIU, Illinois State University (ISU), University of Illinois Extension, and the Natural Resources Conservation Service.

Advance registration is $15 per person and increases to $20 the day of the workshop.

To register online, go to {agriculture.illinoisstate.edu}.

For more information, contact ISU professor Paul Walker at 309-438-3881 or U of I Extension specialist Duane Friend at 217-243-7424.

FROM THE COUNTIES

Page 9 Monday, April 15, 2013 FarmWeek

SHOW OF SUPPORT

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ARROLL — Farm Bureau will sponsor a progressive ag safety day for children ages 6 to 13 Saturday, May 4, at the Carroll County Fairgrounds. Call the Farm Bureau office at 244-3001 or go to {carrollcfb.org} to register. Registration deadline is April 22.

• Farm Bureau will sponsor a defensive driving course Tuesday, May 7, and Wednesday, May 8, at the Farm Bureau building. Cost is $12. Call the Farm Bureau office at 2443001 by May 1 to register or for more information.

HAMPAIGN — Farm Bureau Young Ag Women will host a dinner program at 6 p.m. Tuesday, April 23, at the Farm Bureau auditorium. Sara’s Sanctuary and Wellness Retreat will present the program. Email Susie@ccfarmbureau.com for reservations.

OOK — Farm Bureau will collect recipes for a 2013 recipe collection. All entries will be entered into a drawing to win a $50 gift certificate to a local farmstand or grocery retailer. Email recipes and member’s name and phone

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Rhett Laubach, a professional speaker and former national FFA officer, engages some of 500 FFA members who attended the recent Illinois Farm Bureau Youth Conference in Springfield. The students represented 178 FFA chapters from around the state and donated 2,358 cans of food for food panties. Students also donated $1,257.22 in pennies for the Harvest for All program designed to address hunger nationwide. (Photo by Mariah Dale-Anderson)

State competition to link vets, students with cyber careers Gov. Pat Quinn and the Cyber Aces Foundation last week announced a statewide competition to provide training in cybersecurity careers for students and veterans.

Currently, cybersecurity careers are the second-fastest growing sector in information technology.

The cyber initiative includes advanced online training in cybersecurity.

The Illinois Department of Employment Security (IDES) will use {IllinoisJobLink.com} to contact more than 20,000

veterans who may take a free entry-level training and testing program from April 16-29.

In the fall, another entrylevel testing competition will be offered for veterans, students, and others.

A state championship event featuring top individuals from both competitions will be offered the following spring.

For more information, visit {cyberaces.org}.

2013 ALOT GRADUATES

Twenty-nine Illinois Farm Bureau members representing 13 counties successfully completed the 34th “Agricultural Leaders of Tomorrow” (ALOT) program. The 2013 sessions were held in Bloomington, Freeport, Oregon, Rockford, Springfield, and Sycamore. Begun in 1979, ALOT is an extensive leadership development program designed to give agriculture’s current and emerging leaders a head start on tackling tomorrow’s responsibilities. The program offers more than 80 hours of comprehensive classroom instruction covering four major areas of study: communication skills, political process, agricultural economics, and global issues. A total of 1,045 men and women have graduated. Future program locations will be Central Illinois in 2014 and Southern Illinois in 2015.

Members may contact their local county Farm Bureau offices for more information.

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number to membershipdebbie@cookcfb.org or mail to Cook County Farm Bureau, 6438 Joliet Rd., Countryside, IL 60525.

• Farm Bureau will host a vegetable and patio container gardening workshop for members from 9 to 11:30 a.m. Saturday, April 27, at the Farm Bureau office. Call the Farm Bureau office at 708-354-3276 or email membership-debbie@cookcfb.org by April 24 to register.

• Farm Bureau will host a shred day from 10 a.m. to noon Saturday, April 27, at the Rolling Meadows Country Financial building. Electronics may be recycled at that time and location. Call the Farm Bureau office at 708-354-3276 to register or for more information.

ACKSON — Farm Bureau has a list of Southern Illinois University agriculture students seeking work on a farm. Call the Farm Bureau office at 684-3129 for a list of potential hires.

EORIA — Farm Bureau will host an economic agriculture outlook seminar from 11:30 a.m. to 1 p.m.

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Tuesday, April 23, at the Farm Bureau building. David Opperdahl, business economist with the Federal Reserve Bank in Chicago, will be the speaker.

Call Laurie Petersen at 8233934 for reservations.

TEPHENSON — Farm Bureau will sponsor a defensive driving class from 10 a.m. to 3 p.m. Wednesday, April 24, and Thursday, April 25, at the Farm Bureau office. Cost is $15 for members and $25 for non-members. Call 232-3186 to register.

• Farm Bureau will sponsor a bus trip to Amish country in Shipshewana, Ind., Tuesday, June 11, through Wednesday, June 12. Call 232-3186 to register. Trip details are available at {stephensoncfb.org}.

NION — Farm Bureau has a list of Southern Illinois University agriculture students seeking work on a farm. Call the Farm Bureau office at 833-2125 for a list of potential hires.

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

PROFITABILITY

FarmWeek Page 10 Monday, April 15, 2013

GROWMARK analyst: Now good time to buy motor fuel

BY DANIEL GRANT FarmWeek

Farmers who did not stock up on fuel for the planting season may be in luck.

The market for gasoline, and to a lesser extent diesel fuel, has not been following a typical seasonal pattern and actually could reward those who waited to make purchases this season.

“This year has been unusual,” said Jackie McKinnis, GROWMARK energy analyst.

“We had our highest (gasoline) price in February (because of refinery shutJackie McKinnis downs caused

by Hurricane Sandy), and it’s fallen off a bunch since then.

“People who didn’t buy earlier now have a second chance,” she continued.

“There are good buying opportunities out there.”

Fuel prices typically decline in the winter and rise in the spring/summer when farming and the summer driving seasons heat up.

Gas and diesel prices also usually rise in the summer due to increased production/blend specifications aimed at reducing pollution.

But this year, reduced consumption has put downward

pressure on prices.

The average price of regular gas last week was $3.61 per gallon nationwide and $3.55 in the Midwest, down 33 cents and 31 cents, respectively, from the same time last year, according to the Energy Information Administration (EIA).

The average price of diesel fuel in the U.S. last week was $3.97 per gallon, down 17 cents from a year ago.

“Gasoline stocks are in pretty good shape, but diesel stocks (in the U.S.) are below where they usually are this time of year,” McKinnis said of the spread between gasoline and diesel prices.

EIA last week projected gasoline prices this summer will average $3.63 per gallon, which

When you fill your gas tank, you undoubtedly have seen pumps with the label “This product may contain up to 10 percent ethanol.” Since ethanol is used so extensively across the nation, refiners are now making fuels that are intended to be blended with ethanol.

An example is a lower octane gasoline that when blended with ethanol is sold as a minimum 87 octane fuel. The effect of this practice is a lower cost fuel for the consumer that meets the requirements of today’s motor vehicles.

BY JOE KIRKPATRICK

Feeder pig prices reported to USDA* Range Per Head $29.72-$48.00 $59.98-$62.51

Weighted Ave. Price $38.28 $61.97

This Week Last Week 94,716 72,399 *Eastern Corn Belt prices picked up at seller’s farm

Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $76.07 $76.09 -$0.02 $56.29 $56.31 -$0.01

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

This week $127.64 $127.45

Prev. week $128.50 $127.88

bound for really the last twoplus years,” McKinnis said. “I’d just try to buy on the breaks.”

Gas consumption this year is expected to decrease about 20,000 barrels per day due to increased vehicle fuel efficiency.

EIA in its short-term ener-

gy outlook projected West Texas Intermediate crude oil prices would level off and average $93.92 per barrel this year and $92.25 per barrel next year, compared to $94.12 per barrel last year, barring any major natural or man-made disasters.

There are several important reasons why ethanol is blended with gasoline: better economics, cleaner emissions, and compliance with federal mandates, to name a few.

After extensive research and years of practical experience, it has been determined that automobiles can safely use either straight gasoline or gasoline/ethanol blends that meet the orig- Joe Kirkpatrick inal equipment manufacturer’s minimum octane requirements.

Ethanol blends up to 10 percent (E10) are covered under warranty by every auto manufacturer that sells vehicles in the U.S. for every make and every model of vehicle. Many recommend its use because of

its high octane and superior performance characteristics.

Gasoline without ethanol is becoming increasingly difficult to find. Ethanol is currently blended into more than 75 percent of America’s gasoline, the majority as an E10 blend.

Each state determines if gasoline pumps need to be labeled for fuels containing ethanol.

If you are in an area where labeling is voluntary or not required, it is not always easy to tell if the gasoline contains ethanol. Ethanol blends are offered extensively throughout the Midwest and are becoming more widely available on the east and west coasts.

E10 also is safe to use in small engines such as motorcycles, lawn mowers, trimmers, boats, personal watercraft, snowmobiles, ATVs, etc. Manufacturers understand that a considerable portion of the gasoline sold in this country already

contains ethanol and design their products to be compatible.

As mandated volumes for renewable fuels increase, there is concern that not enough ethanol is being blended to meet the required volume.

This is commonly referred to as the “blend wall.”

In recent months, there have been advances in use of gasoline blended with 15 percent ethanol (E15). E15 has been approved by the Environmental Protection Agency (EPA) for model year 2001 and newer vehicles but is not yet widely available.

Fuels continue to change to meet the needs of consumers and engine manufacturers.

Remember to consult your owner’s manual for your engine’s specific requirements.

Fuel blends continue to change across the nation

M A R K E T FA C T S Weight 10-12 lbs.

40 lbs.

would be down slightly from the average price the previous two summers (see graphic).

The average gas price for the year was projected to be $3.56 per gallon compared to $3.63 in 2012.

“The market has been range-

Change - $0.86 -$0.43

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 This week $138.18 $140.27 -$2.09

Lamb prices NA

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 4/4/2013 15.3 27.2 10.1 3/28/2013 16.7 26.2 19.7 Last year 28.3 17.9 26.6 Season total 1225.8 820.2 442.7 Previous season total 1042.1 845.9 980.6 USDA projected total 1350 1025 800 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

GROWMARK’s Joe Kirkpatrick is refined and renewable fuels sales manager. His email address is jkirkpatrick@growmark.com.

Fire up the grill; beef cuts earn ‘heart-healthy’ label

Consumers who are interested in formulating a “heart-healthy” diet may choose from six different cuts of fresh beef.

The American Heart Association (AHA) screened and verified the cuts that are identified as key building blocks for a heart-healthy diet.

The extra-lean beef cuts, which now will be labeled with the Heart-Check mark, are USDA Select grade cuts of sirloin tip steak, bottom round steak, top sirloin stir-fry, boneless top sirloin petite roast, top sirloin filet, and top sirloin kabob.

“Independent research and this certification from the American Heart Association confirms to consumers that extra-lean beef can be a building block in an overall heart-healthy diet,” said Cheryl Hendricks, a registered dietician with the National Cattlemen’s Beef Association.

Jeanne Harland, a beef producer and Illinois Farm Bureau member from Knox County, believes beef in the past received a “bad rap” and wasn’t recognized as a key component of a healthy diet.

Harland is trying to promote the healthiness of beef to consumers through her role as chairman of the Nutrition and Health Subcommittee for the Cattlemen’s Beef Board.

“We’re trying to get the message out that,

while we need to be concerned about obesity and overall nutrition, we also need to be aware of all the nutrients we need in our diets,” Harland told FarmWeek.

“Research shows that a lot of people go on whatever the (fad) diet of the day is without considering that when you lose calories, you also lose nutrition,” she continued.

“You can get a lot of nutrition from a small portion of beef.”

One ounce of beef provides seven grams of protein. Beef also is a source of essential vitamins including vitamins B, D, E, and K and minerals including potassium, calcium, Jeanne Harland and zinc.

Harland and her husband, A.J., produce beef, corn, soybeans, and hay on a fifth-generation farm. She believes consumer education efforts have been effective but need to be ongoing as more of the U.S. population becomes further removed from production agriculture.

More information is available online at {MyBeefCheckoff.com.}. — Daniel Grant

PROFITABILITY

Page 11 Monday, April 15, 2013 FarmWeek

CASH STRATEGIST

Chinese soy consumption slowing

Amid the focus on last week’s USDA supply and demand report, the latest monthly Chinese soybean import data and forecasts for the rest of the marketing year got lost. Needless to say, the concerns we expressed in late February are looking more realistic with each new monthly report.

March imports were 3.84 million metric tons (mmt), 1 mmt less than last March’s imports. A metric ton of soybeans equals 36.7 bushels.

And the assessment of China’s National Grain and Oilseed Information Center, a government-tied think tank, is that April imports may reach only last year’s 4.8 mmt level.

That would leave imports through the first seven months of the world marketing year at 2.6 mmt less than last year, and just 1 mmt above the pace two years ago.

Last year’s imports reached only 59.2 mmt, while 2 years ago they were only 52.3 mmt. By comparison, USDA only lowered its import forecast to 61 mmt from 63 mmt in the last report.

World soybean supplies have been tight the last six

months because of last year’s sharp cut in South American output. The subpar U.S. crop contributed to that tightness, possibly contributing to the slower import pace.

But pork demand in China has been unusually weak the last few months, dropping prices 27 percent from the peak and 15 percent below last year. Prices are cutting into profitability, discouraging pork production.

And now the Chinese are confronting the psychological implications of bird flu. How much that impacts poultry demand and output and the resulting feed demand is not certain at this writing. But early anecdotal evidence suggests chicken consumption has been impacted.

Seasonally, exports improve into mid-summer, but given the pork and poultry situation, we wouldn’t expect imports to be much, if any, larger than last year. That would imply a yearly import total just below that of last year at best.

And even though we’d expect them to begin to import for government inventory at some point, we don’t expect China to begin until sometime later this year.

So for now, the world’s largest importer of soybeans, 64 percent of all soy export trade, may be more of a drag on prices than a support.

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Corn Strategy

ü2012 crop: Target a move above $6.70 on May futures to boost sales to 90 percent. We wouldn’t discourage you from pricing inventory other than “gambling stocks” to carry into late summer. ü2013 crop: Arguably, newcrop prices may be able to rebound easier than old-crop prices the next three months.

December futures might still be able to get to $5.70 again. Use a rebound to $5.55 to make catch-up sales. Plan to use the next rebound to add to sales. vFundamentals: The new supply/demand estimate was not as bad as feared. Still, it will take a friendly June 28 stocks number to restore potential for sharply higher old-crop prices. But by that time, new-crop possibilities will be a more important factor.

The large increase in world ending stocks cast more of a pall over export business not only for old-crop corn but perhaps for new-crop, too. The slow start to spring is garnering attention, but the markets may not reflect planting concerns for another couple of weeks.

Cents per bu.

Soybean Strategy

ü2012 crop: The trade keeps trying to talk up oldcrop prices, but it is fighting a 5.2-billion-bushel South American crop and potentially softer Chinese imports. Use any push near $14 on May futures for catch-up sales. We wouldn’t be opposed to selling everything other than “gambling” inventories. ü2013 crop: Use a rally to $12.35 on November futures for catch-up sales. We may even recommend another small sale soon. Check the Hotline frequently. vFundamentals: Soybean export shipments are holding up, but the steady drop in inventories at New Orleans indicates they may be about to fall even further. With supplies readily moving out of Brazil and starting to ship from Argentina, that should be no surprise to anyone.

Two years ago, weekly shipments fell below 10 million bushels by early May and kept declining. Processor margins fell hard again this past week, which

should lead to a steep drop in the crush pace soon, too.

Wheat Strategy

ü2012 crop: If Chicago May futures do not stabilize quickly, they could test the $6.59 low. We don’t recommend selling weakness to wrap up sales yet, but check Hotline daily. We could pull the trigger at any time. ü2013 crop: Wait for Chicago July futures to trade above $7.12 before making catch-up sales. vFundamentals: Weakness in wheat prices could be linked to the weekly crop report indi-

cating 36 percent of the winter wheat crop was rated good to excellent, a two-point increase from the previous week. The soft red winter condition improved while the hard red winter declined. USDA raised its ending stocks estimate just 2 percent to 731 million bushels in its latest supply/demand forecast. However, the world carryover number, 182 million metric tons, came in well above the March 178.2-million-metricton forecast and trade expectations. The trade remains nervous about the Southern Plains’ crop, but other factors are countering its influence.

INAUGURAL CLASS PERSPECTIVES

FarmWeek Page 12 Monday, April 15, 2013

University of Illinois Collegiate Farm Bureau officers, standing left to right, Liz Harfst, Claire Benjamin, and Bridget Verbeck welcome new collegiate Farm Bureau members to the group’s kickoff meeting in the Illini Union in October. More photos and information are online at {facebook.com/UofICollegiateFarmBureau}.

(FarmWeek file photo)

Collegiate Farm Bureau offers students meaningful experiences

As a University of Illinois senior graduating in May, I answer questions daily about my future.

Where do I see myself in five years? How will I be impacting agriculture in 10 years?

I have been asked very few times how am I impacting agriculture today.

During a recent Collegiate Farm Bureau (CFB) meeting at the U of I, I listened to presentations from the Illinois Farm Families coalition and Doug Kirk, Illinois Farm Bureau Young Leader Committee District 12 representative.

KAYLEE As a CFB executive team offiWILLIAMS cer, I attended various events and heard several inspiring messages throughout the last year, including the IFB annual meeting in Chicago and the IFB Young Leaders Conference in Bloomington. I never would have imagined that the simplest and most inspiring phrase would come from a general CFB membership meeting.

During this meeting, Kirk shared with us: “You are the present and future of agriculture.”

Thinking about his words and looking back on my experiences, I have had many great chances to impact agriculture in many ways. Yet some of my most meaningful experiences have been within the last year through the start of CFB. I grew up in a family of Farm Bureau members and always knew I would become a part of Farm Bureau as an adult. However, I never dreamed of having some of the opportunities it has offered me — before I began a professional career.

I have had the opportunity to develop myself as a leader and a professional in the agriculture industry. I have been able to engage in conferences and meetings that most other college students do not.

Discussions with Illinois Farm Families have given me the necessary tools to have conversations with the average consumer about agriculture.

I already have used their tips and will continue to

for the rest of my life.

I always have had an interest in politics, but becoming involved with FB ACT (Farm Bureau Agricultural Contact Team) has given me the chance to fight for agriculture and have a voice in what I believe in.

The Champaign County Farm Bureau Young Ag Leader program has impacted me tremendously and helped me find a niche within the Farm Bureau community that without CFB I would not have found before graduation.

Through the regular meetings, trips, and Young Leader Conference, I have made connections with other young people like myself — those with a passion for agriculture, those who are looking to have an impact today, and in the future.

Of course, these are some of the wonderful opportunities that Farm Bureau has to offer everyone. But without CFB, I’m not sure I would have developed into a strong Farm Bureau member until after I had graduated from college.

CFB offers a collegiate Farm Bureau member many opportunities, and it also holds a unique position on campus because it brings together students from a variety of majors and backgrounds.

It is the single registered-student organization that promotes all facets of agriculture. That is something of which we are very proud.

I am looking forward to watching this CFB prosper and couldn’t be happier about its success in its first year on the U of I campus. My generation is the present and future of a changing agriculture industry.

I hope those students who choose the U of I recognize that CFB will help them make their mark on agriculture today, as well as develop them into agriculture leaders of the future.

Kaylee Williams of Maple Park is a senior majoring in animal sciences at the University of Illinois College of Agriculture, Consumer, and Environmental Sciences, Urbana. She will graduate in May and will start the professional science master’s program in animal agriculture production in August.

A tale of college visits: Students, parents beware

I’ve got a son in college and a daughter about to be. In the past four years, we’ve done a dozen college visits at nine different schools. It’s been a research effort lasting years; perhaps I should report some results.

First a disclaimer: I work for Purdue. I’ll try to stay objective.

So here are a few of our experiences — research observations, I suppose. Start with the best, with names attached.

Indiana University (IU) and Hanover led with their campuses. Good choice. They’re both beautiful.

Several schools gave us free meal passes to a college dining hall. We tasted actual college fare and saw real college students doing real collegeLARRY DEBOER student things.

Ball State did a masterful presentation with some well-spoken students talking about internships, foreign study, and special projects. I think they mentioned David Letterman once or twice.

The best college towns were IU’s Bloomington, North Carolina’s Chapel Hill, and Hope College’s Holland, which doubles as a Lake Michigan resort in the summer.

Those towns have a lot of student-centered stores and eateries within walking distance. NYU (New York University) and Columbia have the stores and eateries of New York City within a subway ride.

Not a fair comparison.

Our tour guide at NYU casually mentioned that his adviser was the voice of the beast in Disney’s “Beauty and the Beast” — Robbie Benson! He told us about meeting with Benson and his wife, singer Karla DeVito, and how they argued about how he could break into the business. NYU’s experiential approach and impressive connections were made clear.

At Kalamazoo, we met the video lab instructor and one of his star students, who was researching, writing, and filming her senior project. She had transferred from the University of Michigan and gave us her take on the big school vs. small school question.

At Purdue, the woman who would be our daughter’s academic adviser spent 45 minutes one-on-one, describing what her freshman year would be like, going over the courses in her major, even finding an obscure minor that fit her interests. It was impressive for a big school.

Of course, there were some not-so-good experiences, too. Here they are, names detached.

One small school with terrific performing arts and communications programs did not have a film major. That was a major disappointment.

One college had a program so inflexible that film majors in telecommunications couldn’t take animation courses in the college of fine arts.

At one school, our tour guide described how he’d loafed through his courses during his first two years, yet was still going to graduate on time. Then he described in detail the best meal plan to buy. It’s better to meet students who are excited about their education.

One school was drenched in athletic spirit. That would have been fine with our son, who’s a big sports fan. Our daughter wondered if she’d be a social outcast if she wasn’t interested in sports.

One school lost our daughter’s computer listing and failed to send her acceptance letter until we finally called to ask. A computer glitch like that can follow you for years.

We visited big schools and small schools. The big schools say, “You can make a big school small, but you can’t make a small school big.”

At one small school, we heard the story of a student who knew her professors so well that several came to her wedding.

It’s a tradeoff between the vast opportunities at big schools and the guaranteed personal attention at small schools.

You can get attention at a big school if you hustle. If you don’t, you can fall through the cracks. You’ll get all the attention you can handle at a small school. But they may not offer the opportunities that you really want.

What you hope for is a bit of luck: a small school with a specialty in just the opportunity the student is looking for or a welcoming community that shares the student’s interests in some corner of a big school.

As we visited campuses, we tried to imagine what life would be like for our student. Looking back, the best experiences were oneon-one, talking with students, administrators, or professors about our student’s particular interests.

The schools where that happened climbed to the top of the list.

Larry DeBoer is an agricultural economics professor at Purdue University, West Lafayette, Ind. His email address is ldeboer@purdue.edu.