FarmWeek Aug. 17 2009

THE UNIVERSITY OF Illinois launched its first Energy Farm tour/open house on its 320-acre research farm...................................3

FA R M E R S H AV E M O R E TO LOSE than gain under proposed cap-and-trade legislation, according to AFBF. .........................4

U.S. FARMERS are projected to har vest the largest soybean crop and second-largest corn crop on record. .....................................7

Monday, August 17, 2009

Two sections Volume 37, No. 33

House plan fueling a fiasco for farmers?

BY MARTIN ROSS FarmWeek

House “climate” proposals would hit farmers especially hard in the wallet and the tank, a representative of one of the U.S.’ remaining ag fuel refiners warns.

House greenhouse gas (GHG) cap-and-trade requirements likely would spur a hike in ag fuel prices beginning in 2014, according to Bob Looney, vice president for governmental affairs with CHS, a Minnesotabased, farmer-owned energy/grain company that co-owns a Kansas refinery with GROWMARK. The American Petroleum Institute (API) warns House GHG emissions caps would place “disproportionate costs on people who drive a car, truck, tractor, or take a flight.”

API cites recent Heritage Foundation projections of a 55 percent increase in natural gas costs and a 58 percent boost in gasoline prices under House proposals.

While utilities are wary of cap-and-trade’s impact on future electrical generation, Looney noted House legislation initially offers electricity providers a limited number of “free” greenhouse emissions

allowances that would help community- or state-controlled utilities avoid major consumer rate increases related to emissions limits.

On the other hand, petroleum refiners would “bear the brunt of a much more onerous system,” he said.

According to API, refiners would be held responsible for 44 percent of emissions, including both “smokestack” refinery emissions and emissions from the fuels they produce.

House-proposed allowances would meet only about 7 percent of refiner compliance needs — Looney told FarmWeek fuel suppliers such as CHS would be forced to buy allowances that represent 93 percent of their excess GHG emissions.

“With every gallon of offroad diesel we sell, we’re going to have to pass on the cost of those allowances,” Looney advised.

“Given a real-world, $40-a-ton greenhouse gas allowance we’d have to buy, we’ve estimated we’d have to pass on anywhere between 38 and 50 cents a gallon (diesel/gasoline cost) to our farmers. That would have to take place immediately and would be for pretty much all refiners.

“Farmers in the United States are served mostly by small refiners, and small refiners are going to have to incur quite

For more on climate policy, see page 4

a large cost every year to buy allowances and pass them on.

“If they can’t pass them on, there’s a fear some of them would have to close. If you close a small refinery in a rural area, there aren’t too many others around and the supply-anddemand gets out of whack. That also exacerbates (farm) costs.”

He sees additional cost increases for natural gas, propane, and petroleum-based feedstocks used in fertilizer production. At

the least, Looney hopes the Senate would provide financial assistance to help refiners “spread costs out and minimize how much we pass on to our farmers.”

Lower bidders?

Currently, 37 of 147 U.S. refiners are what Looney would call “small.” They lack the income from oil drilling that provides larger fuel marketers a source of revenue to buffer See Fiasco, page 7

RABBIT REPARTEE

Gary Mohr, Bloomington, left, president of the Illinois Rabbit Breeders Association, comments as he weighs entries in the Illinois State Fair junior rabbit competition. Looking on are Kirby Cowman (green shirt), 10, from Alexander in Morgan County; Carlee Critchelow (pink striped shirt), 11, from Chandlerville in Cass County; and Jazzmyn Whittier (white top), 13, from Downs in McLean County. To see the junior champions and reserve champions from the meat rabbit trio, poultry meat trio, meat goat trio, wether, barrow, and steer, go to {ILFB.org}, Ken Kashian’s photo galleries, 2009 Illinois State Fair. (Photo by Ken Kashian)

Periodicals: Time Valued

Illinois farmers face possibility of lower yields, prices

BY DANIEL GRANT FarmWeek

The USDA August crop production report released last week generally projected higher corn and soybean yields compared to last year in states west of the Mississippi.

In fact, current corn yield estimates would be a record in Iowa and Nebraska.

However, it could be a different story in Illinois. Yields here were projected to average 175 bushels per acre for corn and 44 bushels per acre for soybeans, which would be a

decrease of 4 and 3 bushels per acre, respectively, compared to last year. “(Potential) yields on my farm are down from last year by probably 10 percent,” said Mark Elliott, a farmer from Fairbury in Livingston County who last week participated in Mark Elliott the Illinois Farm Bureau Marketers to

FarmWeek on the web: FarmWeekNow.com

Washington trip. Participants visited USDA to witness the release of the report. “It’s a long way to go until fall,” he said.

Sixty-three percent of the Illinois corn crop and 60 percent of the soybean crop last week was rated good to excellent.

But the maturity level of both crops last week remained behind as just 29 percent of the corn crop was in the dough stage compared to the average of 72 percent while 42 percent of soybeans were setting pods

compared to the average of 77 percent, according to the National Agricultural Statistics Service Illinois field office.

“In our area I’d say 50 to 60 percent of the corn was planted after June 15,” said Ray Krausz, a Ray Krausz farmer from Mascoutah in St. Clair County, who didn’t get corn planted See Yields, page 2

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

FarmWeek Page 2 Monday, August 17, 2009

RESEARCH

Quick Takes PORK RESTRICTIONS LIFTED — South Korea last week announced it will lift restrictions on imports of hogs and pork from the U.S. South Korea now will inspect only a small sample rather than 100 percent of U.S. pork exports. It also lifted a ban on the import of live hogs from the U.S. The restrictions were put in place in the wake of the H1N1 flu outbreak.

“NPPC (National Pork Producers Council) has been working closely with U.S. and foreign g over nment officials to terminate all remaining H1N1 restrictions o n U. S. h o g a n d p o r k e x p o r t s,” s a i d D o n B u t l e r, NPPC president.

South Korea in 2008 imported $284 million worth of U.S. pork. But sales of U.S. pork to South Korea this year through May were down 10 percent.

BIOFUELS LIQUIDATION — VeraSun Energy Corp. plans to auction roughly 1,600 acres of Illinois farmland Sept. 10. The land, located in Montgomery, Madison, and Vermilion counties, consists primarily of reportedly high-quality tillable far mland, with some locations offering potential for industrial and commercial development.

T he auction is subject to approval by the cour t overseeing the company’s Chapter 11 bankr uptcy.

VeraSun acquired the land over several years in support of ethanol-related businesses, and the sale is part of the troubled biofuels company’s efforts to maximize returns for creditors.

“By offering each of the three far ms in several tracts, we will enable all bidders to participate on an equal footing whether buyers want an entire farm or only part,” said Rex Schrader, president of Schrader Real Estate and Auction Co., which will handle the sale.

BEAN BOYCOTT? — A number of European Union (EU) buyers are pushing to stop all imports of U.S. soy products following the discovery of traces of biotech corn in a recent shipment, highlighting concerns about the EU’s “zero tolerance” policy on accidental traces of GM material.

E u r o p e a n t r a d e s o u r c e s r e p o r t e d U. S. s oy m e a l shipments to Spain and Germany were found to contain traces of a GMO corn product currently prohibited under EU law.

Sources said 50,000 metric tons of “contaminated” m e a l wa s u n l o a d e d a n d d e t a i n e d a t Ta r r a g o n a — Spain’s largest port.

The push to halt U.S. shipments following the incident is not an official EU decision, but instead involves selected EU buyers.

Illinois Farm Bureau Senior Commodities Director Tamara White suggested the incident illustrates problems related to the EU nations’ lack of a “standardized (GMO) approval system that they adhere to” and the need for “science-based” international agreements.

(ISSN0197-6680) Vol. 37 No. 33

August 17, 2009

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University of Illinois agricultural engineer Ted Funk at the U of I Agronomy Day last week discussed issues facing a biofuel industry fueled by biomass crops. Funk’s research was part of an energy tour. (Photo by Kay Shipman)

Agronomy Day

U of I researchers targeting bioenergy crop challenges

BY KAY SHIPMAN FarmWeek

Farmers thinking about growing crops for the biomass energy market face challenges, but University of Illinois researchers presented possible solutions to those difficulties last week at the U of I Agronomy Day. An energy research tour covered topics ranging from biomass markets to insect pests. Several farmers raised their hands when Ted Funk, U of I agricultural engineer, asked who was growing biomass crops.

Funk and Gary Letterly, U of I Extension natural resources educator, focused on existing or short-term markets, dubbed bridge markets, for biomass crops.

“We think a bridge market is important so we can get a supply chain in place when the (cellulosic) technology comes along,” Funk said.

Farmers could burn pelletized biomass crops in stoves, but Letterly noted only a few processors in Illinois have been willing to pelletize miscanthus grown on a U of I research farm near Taylorville.

Other markets include using biomass to cofire coal boilers and a gasification market for heat, power, and chemical feedstock.

At another tour stop, growers learned entomologists are discovering insects, including aphids, on miscanthus.

Jarrad Prasifka and Jeff Bradshaw, both researchers with the Energy Biosciences Institute, are making discoveries in their multi-state survey of biomass crop pests, but that makes their findings more difficult to put into context, they warned.

“Miscanthus is such a new crop (in the U.S.) that not much is known about it,” Bradshaw told farmers. “At this point, it is difficult to forecast what the impact of insects will be on these crops.”

For example, in as many as nine states, the two researchers found hundreds of aphids on miscanthus leaves.

“You shouldn’t panic,” Prasifka added. “Just because you find something is no reason to be concerned. We’re going to try to separate major concerns from minor concerns.”

Yields Continued from page 1 this year and had to take the prevented planting option. “A lot of corn was (planted) early (in the season) but it probably won’t amount to anything because it got so much rain.”

Many farmers in Illinois, therefore, could end up with yields lower than last year. They also face the possibility of lower prices for corn and wheat.

USDA last week projected the 2009/10 season average price for corn could average just $3.50, which would be down a quarter from the previous estimate. The price for wheat was projected to average between $4.70 and $5.70 per bushel, down a dime on both ends of the range.

The season average soybean price was raised 10 cents to an average of $9.40 per bushel.

“It definitely will be bad for Illinois (farmers) if we have lower yields and lower prices,” said Aaron Wernz, a farmer from West Union in Clark County. “It just comes down to the weather.

“If we have an early frost, it could be a horrible crop,” Aaron Wernz Wernz continued. “But if we have a late frost, it potentially could be a good crop.”

FarmWeek Page 3 Monday, August 17, 2009

RESEARCH

Above: University of Illinois biomass professor D.K. Lee, right, describes his switchgrass research trials to participants of the U of I’s first Energy Farm Tour last week. Lee is working with an extensive on-farm plant nursery to evaluate many varieties of switchgrass, prairie grasses, and other potential biomass crops.

At left: Erik Sacks, a plant breeder with Indiana-based Mendel Bioenergy Seeds, shows the density of a new miscanthus variety that can be planted from seed. Sacks’ company is testing different biomass varieties on the new University of Illinois Energy Biosciences Institute Farm near Urbana. (Photos by Kay Shipman)

All things energy: U of I energy farm unveils research

BY KAY SHIPMAN FarmWeek

Even to the uninformed, the crop plots on the University of Illinois’ newest research farm looked different.

Patches of miscanthus and other tall grasses dwarfed the researchers and their audiences. Mechanical devices towered over the crops and collected all types of environmental data.

Last week, the U of I Energy Biosciences Institute (EBI) launched its first Energy Farm tour/open house on the 320acre research farm south of the South Farms.

From five acres two years ago, the Energy Farm now has 180 acres planted with miscanthus, switchgrass, mixes of prairie grasses, and corn as a dedicated energy crop, according to Tim Mies, farm director and deputy director of opera-

tions for EBI research.

The remaining acres are planted in corn and soybeans until they are replaced with bioenergy crops.

“I see this (event) as being like Agronomy Day when people will come annually and see what’s new. We will present our research,” said Tom Voigt, professor and Extension specialist in biofuel, turf, and landscape grasses.

That research is at the most basic level in the plant nursery plots of D.K. Lee, professor in biomass and bioenergy crop production.

Lee is testing the survival and production rates of many varieties of switchgrass and native grasses. His research presents a challenge — seed costs $150 a pound.

With crop improvements, Lee said he hopes to be able to make the price of seed more

reasonable. “There is no reason to have seed that expensive,” he added.

Other Energy Farm researchers are studying the impact of bioenergy crops on

the environment by measuring changes in groundwater, soil carbon, and nitrogen, as well as atmospheric changes.

Research includes identifying potential insect pests and a

study of production systems.

Lee envisioned the integration of biomass crops into a farm operation: “Grasses should be grown on marginal land,” he said.

New U of I energy farm ‘unique’ for biomass trials Forty new crosses of miscanthus are being put to the test by an Indiana-based seed company on the University of Illinois Energy Biosciences Institute Farm near Urbana.

“This is a unique space that’s highly valuable,” said Erik Sacks, senior plant breeder with Mendel Bioenergy Seeds, Lafayette, Ind. “The University of Illinois is at the forefront of energy grass research.”

The U of I test plot is one of many locations where Mendel is testing how well the miscanthus crosses, known as entries, adapt to local environments and their yield potential, according to Sacks.

“Here we have good selection for winter survival,” Sacks said, pointing to bare areas where plants didn’t live through the long, harsh winter.

The plants, now 2 years old, were grown

from seedlings and have the potential to be grown from seed — a major step forward for miscanthus production.

Currently, hybrid miscanthus must be grown from rhizomes.

“This plant could be planted from seed, but we still have challenges,” Sacks said.

One particularly promising entry rivals the hybrid miscanthus in height, but Sack’s plant prodigy is more dense than the hybrid miscanthus, meaning it may yield more biomass.

Sacks was not concerned that miscanthus seed reproduction might cause problems.

His plan is to breed miscanthus that would flower too late in the growing season to mitigate potential problems, he explained.

His goal is to create a miscanthus breeding/seed operation in a tropical climate, he added. — Kay Shipman

Retired scientist says more funding needed to meet yield goals

BY DANIEL GRANT FarmWeek

The top goal of the USDA Agricultural Research Service (ARS) is to develop new technology that can be used in the ag industry and yet provide an overall benefit to the U.S. public.

Roger Lawson ARS, which in the past has developed such products as DEET, seedless grapes, and lactose-free milk, currently is working on 1,200 research projects around the country, said Rob Griesbach, technology transfer coordina-

tor at ARS. Griesbach and other researchers met last week with participants of the Illinois Farm Bureau Marketers to Washington trip.

Current ag research, which could be used to increase crop yields, could be critical as the U.S. population by 2042 is projected to increase by 130 million people, according to Roger Lawson, a retired scientist and research leader at ARS. The population growth in the U.S. “will require 30 to 40 percent more food than we currently produce,” Lawson told FarmWeek. “And we don’t have a never-ending amount of land (for production).”

Producers, therefore, will

have to produce higher yields on fewer acres in the future, Lawson said.

But funding for ag research at the federal level has been stagnant, according to the 72year-old retired scientist.

The number of scientists at the ARS research facility in Beltsville, Md. has dwindled from 400-plus in the 1960s to a current count of 253.

“All of ARS is dramatically underfunded. There are not enough advocates for ag,” Lawson said. “There has to be some planning for the future about how we select crops and alter crops” to feed, clothe, and fuel a growing population.

One new method ARS researchers hope will boost

crop yields is nested association mapping (NAM) which allows researchers to dissect the genetic basis of complex traits and do more phenotyping of crops under field conditions.

Researchers through the technology hope to isolate genes that are beneficial to crop yields so the traits can be passed on to breeding programs to improve crop genetics.

Future corn varieties could offer benefits such as earlier flowering to expand the area that could be used to grow corn and improved water and nutrient-use efficiency, according to Jack Okamuro, leader of the ARS crop production and

protection programs.

Soybean research at ARS currently is focused on developing varieties that are resistant to pests and pathogens.

Researchers have isolated some beans not on the commercial market that are as much as 80 percent tolerant to soybean cyst nematodes (SCN), according to Ben Mathews, an ARS plant physiologist. Beans must be at least 90 percent tolerant of a pest before they can be considered resistant.

“There is some light at the end of the tunnel for controlling nematodes,” said Mathews, who noted U.S. soy farmers each year lose about 7 percent of yield potential to SCN.

FarmWeek Page 4 Monday, August 17, 2009

CLIMATE

Cap-and-trade plan costly for farmers, consumers — AFBF

BY DANIEL GRANT FarmWeek

Farmers have more to lose than gain under proposed capand-trade legislation, according to the American Farm Bureau Federation (AFBF) Rick Krause, AFBF senior director of congressional relations, and Allison Specht, trade economist for AFBF, last week told participants of the Illinois Farm Bureau Marketers to Washington trip the proposed

climate change legislation likely would increase the cost of everything from farm inputs and energy to food.

“It would be a net loss for crop producers,” Krause said during a meeting with IFB members at AFBF headquarters in Washington, D.C. Some projections recently indicated farm production costs in Illinois could increase by $515 million per year by 2020 if the proposed legislation becomes law.

FUEL, FEDS, AND FARMERS • U.S. petroleum consumption is estimated at 19.498 million barrels per day. Transportation accounts for 71 percent of consumption: An average 378 million gallons of motor gasoline are consumed per day, requiring 8.989 million barrels of oil.

• According to the U.S. Environmental Protection Agency (EPA), energy-related activities were the primary sources of U.S. greenhouse gas emissions from 1990 through 2007, accounting for 86.3 percent of total emissions on a carbon dioxide (CO2) equivalent basis in 2007.

Emissions from fossil fuel combustion comprised the vast majority of energy-related emissions, with CO2 being the primary gas emitted.

• Nearly 150 refineries are operating in the U.S. with total operating capacity of 17.7 million barrels a day. Illinois has four operating refineries with a combined capacity of 915,600 barrels per day.

• Fuel sales and deliveries to Illinois farms were estimated at 17.6 million gallons in 2007. Nationwide, more than 3.2 billion gallons reportedly were sold for farm use.

Climate for debate Concerns over the potential cost of cap-and-trade proposals are surfacing from a number of diverse economic interests.

Joining the fray over climate legislation is a long list of U.S. Senate committees.

Senate Majority Leader Harry FarmWeekNow.com Reid (D-Nevada) hopes to see com- F o r m o r e i n f o r m a t i o n o n mittee work completed by Sept. 28, t h e c l i m a t e b i l l , v i s i t and American Farm Bureau Feder- FarmWeekNow.com. ation (AFBF) regulatory specialist Rick Krause suggested the full Senate may debate proposals in October or November, depending on “a little thing called health care.”

Senate Environment and Public Works Chairman Barbara Boxer (D-Calif.) is expected to submit a general plan for regulating greenhouse gases by Sept. 8. The Senate Energy and Natural Resources Committee is to address energy provisions, the Finance Committee will consider how greenhouse emissions allowances should be allocated, and Ag Committee members will cover producers and forest emissions “offset” opportunities.

The Senate Science and Commerce Committee also will play a role, and Senate Foreign Relations Chairman John Kerry (DMass.) “wants a piece of it” as well, Krause reported.

Meanwhile, a broad spectrum of sectors is gearing up to challenge cap-and-trade proposals. A new National Association of Manufacturers study warns that under House climate measures, the U.S. would lose 1.8 million to 2.4 million jobs, annual per-household costs would rise $730-$1,248, and annual gross domestic product would drop between $419 billion and $571 billion by 2030.

Meanwhile, a food industry coalition is expected to release projections of consumer price increases that would result from House-approved greenhouse policies.

“These studies, if done right, might provide some additional ammunition for us,” Krause said last week. Farm Bureau opposes the House climate plan.

In addition, a new Energy States Alliance including chambers of commerce from North and South Dakota, Montana, Nebraska, Wyoming, Colorado, and Alaska plans to focus awareness on concerns facing coal, oil, and other energy interests and state economic impacts under climate proposals. The group’s first meeting is set for Tuesday, Aug. 25.

Grassroots input and media visibility will be the focus of planned nationwide “Energy Citizens” rallies starting tomorrow (Tuesday) in Houston and running through early September. A Springfield rally tentatively is slated for Sept. 1.

Energy Citizens is supported by groups including AFBF. — Martin Ross

The shock to input costs likely would be in the form of much higher prices for gasoline, diesel fuel, and fertilizer, which could add an estimated $34.50 per acre to corn production costs and $9.91 per acre to the cost of soybean production in Illinois.

Meanwhile, higher production costs also could deal a big blow to U.S. ag exports.

“What happens when input costs increase (in the U.S.) and they don’t in other countries?”

Krause questioned. “We’d be trying to compete in international markets with higher costs. We would need something to level the playing field.”

Another concern is the legislation may take cropland out of production in favor of planting trees at a time when the world is projected to add another 2 billion people to the population by 2050.

“A big question is how many acres will come out of crop and livestock production,” Specht said. “We’re very concerned about that. It could increase food and feed prices.”

Ag currently provides a net reduction of greenhouse gases.

The industry contributes about 6 to 7 percent of total greenhouse gas emissions, but ag and forestry currently sequester

about 11 percent of those same gases, according to Krause.

“One of the purposes behind the legislation is to make energy costs so high people will change their energy source or reduce their use,” Krause noted. “If we switch from coal to natural gas (for example), natural gas costs are going to go sky-high.” Natural gas is a key component in the manufacture of anhydrous ammonia.

AFBF currently is running models to project additional economic impacts of the proposed cap-and-trade legislation, Specht added.

Bill threat to ‘next generation’?

BY MARTIN ROSS FarmWeek

While agriculture is crucial to reducing greenhouse emissions, the real-world impact of proposed climate policy on renewable energy is “the $64,000 question for a lot of people,” a former Illinois congressman told FarmWeek.

During a Champaign County Farm Bureau-sponsored ag energy conference last week, former House Ag Committee member Tom Ewing agreed that “if we’re impacting our environment, we should do something about it.”

However, Ewing, who chairs a USDA-U.S. Energy Department Biomass Research and Development Technical Advisory Committee, has reservations about House greenhouse cap-and-trade legislation that reflects “the far left thinking in this matter.” Economically, “that probably isn’t where we should be right now,” he said.

“I’ve seen reports saying the bill will have very little impact on the

environment,” Ewing added. “Why are we going to have all these new rules and regulations and bureaucracy and, probably, costs, if it isn’t going to do any good?

“Some people are fearful the rules and regulations would kill the renewable energy industry that isn’t up-and-running yet and that has to go through some growth period before it can meet these kinds of rules.”

Experts at Tuesday’s seminar outlined efforts to foster the “second generation” of biofuels from biomass sources such as corn stover, miscanthus, or switchgrass and to build greater energy efficiencies into corn ethanol production.

Martha Schlicher, a board member of Rochelle-based Illinois River Energy who also leads Monsanto’s bioenergy efforts, sees ethanol plants eventually using “green” biomass combustion or anaerobic digestion in lieu of fossil fuels.

However, such plant modifications currently are difficult to finance given relatively low natur-

al gas prices and “the cloud hanging over corn ethanol.”

Fossil energy thus remains important to converting grain into fuel, and Ewing fears energy costs and competition that limit ethanol profitability will impede future cellulosic biofuels development.

Pesotum grower Eric Rund has conducted on-farm miscanthus “trials” as well as tours of Brazil’s ethanol sector (see story below). He maintains corn ethanol’s continued economic viability both supports next-generation biofuels development and fuels energy-driven crop production that keeps land in environmentally friendlier use.

“Anytime you’re not tearing ground up to put in a five-acre lot with a house or parking lot on it, that ground’s going to keep sequestering carbon,” Rund said.

“If you can keep farming healthy and economically viable, it’s less likely (producers) are going to sell out to a subdivision down the road.”

Land use assumptions ignore trends, numbers “Indirect land use” theories are questionable science on paper or on the ground, according to university and industry experts and an Illinois producer with a firsthand perspective on U.S. and South American agriculture and energy.

The House Ag Committee won approval for cap-and-trade provisions that would slow federal use of global indirect land use change (ILUC) as a factor in evaluating climate-friendly fuels. But ILUC reportedly is still on the table in Senate debate.

At issue is prospective U.S. Environmental Protection Agency (EPA) use of possible shifts in world cropping patterns or removal of sensitive lands to grow food or energy crops in measuring corn ethanol’s carbon “footprint.”

California’s new low-carbon fuel standard — which is influencing climate policy discussion — requires that corn ethanol show a 20 percent more positive greenhouse footprint than gasoline.

Martha Schlicher, an adviser to several renewable energy interests, said EPA analysis indicating ethanol is only 16 percent more climate-friendly is “heavily weighted” by land use assumptions that ignore yield advances and input reductions in corn production.

Pesotum producer Eric Rund has led a number of tours of Brazilian crop and ethanol production.

He visited Brazil two weeks before Tim Searchinger — author of a controversial 2008 report on the

theoretical land use implications of corn ethanol production — guided Time magazine writers on a Brazilian tour of “what he wanted them to see.”

Rund disputes Searchinger’s “balance sheet” approach that effectively equates an acre of new corn production to an acre’s loss of Brazilian forest or grassland. Rund notes wood from Brazilian forests today accounts for roughly 15 percent of the nation’s energy — “That has nothing to do with corn.”

“The amount of land taken out of farmland, pastureland, rangeland, and forests and put into houses, Wal-Marts, streets, and roads there equals the amount of forestland that comes down every year in Brazil (for expanded agriculture), almost to the acre,” he told FarmWeek.

According to University of Illinois ag economist Darrel Good, a projected federal target of 15 billion gallons of corn-based ethanol use would require 5.4 billion bushels of corn. With U.S. trend yields heading toward 170 bushels per acre by 2015, that would translate to 32 million acres.

Good suggests roughly a third of that production would “come back as livestock feed,” in the form of distillers dried grains or other ethanol co-products. “Twenty-two million acres is ninetenths of 1 percent of world cropland acres,” he pointed out. — Martin Ross

FarmWeek Page 5 Monday, August 17, 2009

MARKETS

Hobbie: U.S. grain exports will grow as economy recovers improve so we could see better demand for meat, milk, and Ken Hobbie, president and eggs, which would be reflected CEO of the U.S. Grains in grain demand.”

Council (USGC), has seen Meanwhile, USDA in its recent signs of economic August crop report raised corn recovery around the world. use for ethanol by 100 million That’s good news for U.S. bushels. That will create more farmers who would like to sell distillers dried grains (DDGs), more products which have into the world become a hot market to product for feed boost stagnant ‘We’re returning rations around commodity world, Hobto more nor mal the prices. bie said. trading patterns.’

All U.S. U.S. exports feed grain of DDGs in exports this — Ken Hobbie the past four U.S. Grains Council CEO year are proyears increased jected to from 1 million increase by 4 metric tons to a million metric record 4 million tons compared metric tons last to last year, year. which could boost corn “I think we’ll set another exports by 150 million to 160 new record this year,” Hobbie million bushels, according to said.

USGC. DDGs were crucial to the “That’s really encouraging U.S. maintaining its market share to me. It says we’re returning of feed grain sales when corn to more normal trading patprices were much higher, he notterns,” Hobbie told ed. Now, USGC is focused on FarmWeek during the Illinois educating livestock producers Farm Bureau Marketers to around the world on how they Washington trip last week. can increase the percentage of “And it indicates the ecoDDGs in feed rations. nomic situation is beginning to “We’re talking about (cur-

BY DANIEL GRANT FarmWeek

Carrier in a ‘prime position’ for harvest, economic upswing

BY MARTIN ROSS FarmWeek

A key Midwest rail carrier aims to be in a “prime position” as the general economy gets back on track and Illinois grain moves out of the fields and into livestock, export, and energy markets.

Paul Hammes, Union-Pacific (UP) vice president for ag products, cited a recent leveling-out in the decline in housing starts as the recession begins to ease.

While imports have continued to decline, impacting container availability and capacity, he noted optimistically that an estimated 40 percent of incoming intermodal container traffic “has something to do with a house.”

UP thus is “getting prepared for when volume returns,” devoting freight downtime to system maintenance and “de-bottlenecking” projects. UP’s $2.6 billion capital plan includes $1.7 billion in system engineering, $400 million for capacity-building and commercial facilities, and the purchase of 200 locomotives this year.

At the same time, the carrier has pared down for economic efficiency, reducing staff and reorganizing, closing 23 rail yards, and consolidating six others.

“We do look for some improvement in our business over the third and fourth quarter this year,” Hammes told FarmWeek.

We’ve put a number of plans in place so that when we do get a return of business, we’re going to be ready to handle it. We think we have the ability to increase the capacity on the railroad by about 15 percent within 30 days.

“From an ag perspective, we do have about 9,000 to 10,000 hopper cars parked right now, so we’re in a good position. We have the locomotives in place, and the crews. We’re very well prepared for a strong harvest this fall.”

While container shortages have developed in some key markets, Hammes noted UP is regularly moving both 75-car and 100-car trains out of Illinois, including shipments to growing Arizona and California cattle feed markets.

UP now ships some 60,000 carloads of ethanol each year — roughly 6 percent of its ag business and 1 percent of total business. Much of that moves by dedicated “unit trains” traveling straight from origin to destination.

rent) inclusion rates around the 5 to 10 percent level,” Hobbie said. “We ought to be able to double that.”

Hobbie said Japan continues to be the largest importer of U.S. corn, with annual purchases of about 500 million bushels, but potential growth

markets also include Taiwan, Mexico, and the Middle East.

The USGC leader believes export customers’ concerns about grain availability have been calmed in recent years.

USDA last week projected U.S. farmers this year will produce 12.8 billion bushels

of corn, which would be the second-largest crop on record.

“This shows what we’ve been saying to our customers the last three or four years,” Hobbie added. “We are producing enough grain to meet the demand of all markets.”

SHOWMANSHIP CONTESTANTS

Show judge Stan Tarr, left, questions the animal husbandry knowledge of Mark Hornbostel of Campbell Hill in Jackson County last week at the 2009 Master Showmanship Contest, one of the first competitions held in conjunction with the Illinois State Fair. Youngsters in 4-H and FFA from 41 counties competed for prize money and awards. Competition involved the showing of cattle, pigs, and sheep by all contestants in three rings at the Junior Livestock Building. The top award went to Tyler Loschen of Kempton in Kankakee County. Second and third place winners, respectively, were Samantha Arnold of Media in Henderson County and Dillon Garver of Paris in Edgar County. The Illinois Farm Bureau’s RFD Radio Network was the primary sponsor of the event, now in its 10th year. (Photo by Tricia Braid Terry, Illinois Corn Growers Association director of communications)

FarmWeek Page 6 Monday, August 17, 2009

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Last week I wrote that we were starting to get a little dry. Two hours later it started raining and rained on and off for three days for a total of 3.2 inches. It really was a nice rain that soaked in and will carry us for several days.

We found 12 western bean cutworm moths in our pheromone sticky trap in one week’s time. We have never seen them before and now we have to scout for them. Also, some white mold is showing up in the beans, and aphids are also starting to surface. The crop hasn’t been made yet.

Leroy Getz, Savanna, Carroll County: Rain for the week: 2.3 inches with 1.8 inches on Friday (Aug. 7) and 0.5 of an inch on Sunday (Aug. 9), giving us a total of 27.3 for the season. Ninety-plus-degree temperatures gave crops the kick that they need to help catch up.

Early corn is now in the dough stage and will dent soon. Late corn has now pollinated. Yield check results are so variable that only what goes in the bin will be realistic.

Larry Hummel, Dixon, Lee County: It’s a nice feeling to scratch a few things off the to-do list. Average crop revenue election sign up is over.

Spraying fungicide on corn and soybeans is finished. We are all caught up mowing. I am not sure which direction the grain market is going to take, but the big fluctuations up and down sure keep the guys guessing which side of the fence to be on. Corn and beans both look good once you get past the drowned-out spots. I think countywide we shouldn’t be too far from an average yield if frost can hold off until crops mature.

Joe Zumwalt, Warsaw, Hancock County: I have been away from home for the last few weeks exploring parts of the states of Washington, Illinois, and Missouri with the Young Leader Ag Industry Tour. The best looking crops were the irrigated fields in eastern Washington. It really is amazing what can be grown in a desert with a little water from the Columbia River. Crops in Western Illinois continue to be quite variable. Excellent-looking fields are just across the road from extremely mediocre fields. Some soybeans are beginning to pod fill and most all of the corn has pollinated. There has been lots of activity from crop-dusters spraying both corn and soybeans. It continues to be surprisingly green for the middle of August.

Ken Reinhardt, Seaton, Mercer County: Three inches of rain since my last report.

Soybean aphids have arrived.

Low numbers so far, but they will need to be watched. There is white mold being found in soybeans, some pretty bad in Rock Island County. Gray leaf spot has increased rapidly in corn, and fungicide treatments have switched from preventive to curative and are winding down. About as many acres were sprayed with fungicide as last year but over a longer time period. I will host the 17th annual Soil and Water Conservation District no-till plot at 6:30 p.m. Wednesday.

Ron Moore, Roseville, Warren County: We received 1.3 inches of rain last weekend (Aug. 8-9). Corn and beans are still improving. The corn is all pollinated now and some varieties are starting to fill the kernels. No reports of any serious diseases yet. The stalks look somewhat smaller than last year. That might be a concern later this fall.

Soybeans are setting pods now and some late-season weeds are showing up in fields that have been sprayed only once. No reports of any aphids or other insects yet. I am still looking for diseases to appear since we have had plenty of moisture to help them develop this year.

Mark Kerber, Chatsworth, Livingston County: News from the farm is about like last week — hot and dry. An isolated afternoon shower did pass through, but not enough to report. August is truly a dry month, especially when the jet stream is north into Canada.

It’s a good time to fix any tiles that are still broken in waterways, as they are drying up. Government reports say we are going to have a large crop nationwide. It’s quite a few weeks away from being made yet. Sweet corn is over, and school will soon be starting. I’m starting to see combines getting worked on in the yards. Markets are ho-hum. An early frost would really create some up-side activity.

My neighbor believes these prices are fine, as this does stimulate demand. We saw what too high of prices do to our inputs.

Ron Haase, Gilman, Iroquois County: The only rain we received was on Aug. 7, and we received only 0.1 of an inch. The cracks in the soil are getting larger. The lack of rain and higher temperatures are beginning to show their effects on the crops. We have not received more than a light shower since July 15. Airplanes were still applying some fungicides this past week due to uneven and late pollination of corn and to soybean fields with white mold problems. Most of the corn fields in the area are anywhere from the blister stage (R2) up to the dough stage (R4) while a few fields have entered the dent stage (R5). Most soybean fields are in the full pod (R4) or beginning seed growth stage (R5). There are soybean aphids present but in very low numbers. The local closing prices for Aug. 13 were: $3.17 for nearby corn, $3.06 for new-crop corn, $11.32 for nearby soybeans, and $9.95 for new-crop soybeans.

Brian Schaumburg, Chenoa, McLean County: A warm, sunny week improved our growing degree unit accumulation to 1,915, well behind the 30-year average of 2,173.

Crops look good despite development being two weeks behind average. Mulling over 2010 crop inputs, preparing for harvest, and sending kids (and teachers) back to school are the primary jobs right now. Basis has been slipping. Corn, $3.19, fall, $3.05; soybeans, $11.29, fall, $9.84; wheat, $3.91.

Wilfred Dittmer, Quincy, Adams County: In a dry year, all signs fail, and you cannot seem to buy a rain, but on Wednesday night of last week, the weather reporters said “All is clear” till the next week. How surprised we were when early Thursday morning, the clouds opened up and we received 0.5 of an inch of rain, which brings us to 1 inch for the week. Needless to say, all crops around here are enjoying every drop, while some areas received zero.

Corn ratings probably remain near the same and soybeans have added some growth. Sprayers have been busy getting over the bean acres. Some hay remains to be put away.

Harry Schirding, Petersburg, Menard County: Rainfall last week, 0.26 of an inch.

Total for August, 1.19 inches.

Normal for August, 3.5 inches.

While mowing and preparing for fall harvest, producers are collecting ear samples that show pollination and kernel set have been successful. As the crop enters the grain-fill stage, weather can have a significant effect on yield.

Several ear samples indicate diploida, which could develop into challenges this fall. Conditions are nearly ideal for the development of leaf diseases in corn and soybean. Fungicide applications are increasing as more soybeans reach the R4 stage. Dry weather is allowing producers to harvest the best hay of 2009. Nearby corn, $3.20; nearby soybeans, $11.39, down 13 cents; January corn, $3.12, down 7 cents; January soybeans $10.07, down 11 cents.

Steve Ayers, Champaign, Champaign County: A good crop development week with warmer temperatures, but we are now looking for a shower. Looks like we will have 50 percent chance of rain early this week with temperatures in the mid-80s.

Last Monday (Aug. 10), a Farmer City cropduster went down, but miraculously he walked away from the accident. I measured corn height last week and it was an amazing 10 feet 8 inches tall with the ears at the 5-foot level. Beans are getting taller and podding well.

Tom Ritter, Blue Mound, Macon County: Another week where we gained growing degree days, but it was a dry week. We have been almost four weeks now without considerable rain, and yards and crops are starting to show a little bit of stress. Most of the corn looks good, but in the areas that suffered through compaction or ponding, the corn has turned yellow again and is starting to fire. Beans are extremely short and would really benefit from August rains. They are extremely short for this time of year. Weed and insect control in both corn and beans has been in check. Farmers are getting ready for fall harvest and attending a round of seed meetings.

Todd Easton, Charleston, Coles County: Another hot, dry week here in Coles County. Field surfaces are getting hard and cracked. Corn seems to be enjoying the heat and sunlight it is receiving and drawing on moisture reserves as it continues with ear production. The soybeans are blooming and setting pods, but have a long way to go for big yields. Rain as usual will be the crucial factor for both crops and hopefully will come before too long. Otherwise we will see a lot of ears with unfinished tips and beans with fewer pods than we would like. Cross your fingers for some rain, or better yet, say a quick prayer.

Jimmy Ayers, Rochester, Sangamon County: Several opportunities for rain last week all passed by. If you were putting up hay, it was an excellent week.

Corn in some areas is starting to fire. There’s quite a range in the fields: Some corn is still tasseling and starting the pollination period. In other fields some ears are starting to droop a bit. Beans appear to be growing rather well and most fields are looking pretty good. We’ve still got a few 30-inch beans that haven’t closed the rows, but they are close. I haven’t seen any spray planes. I know there has been some talk of fungicide being sprayed, but I haven’t seen any. It’s going to be a long, drawn-out season.

David Schaal, St. Peter, Fayette County: It was another dry week here. That makes two weeks in a row. That hasn’t happened since the first of May. But oh how we could use a good soaking rain now. Corn from the road sides looks good, but every producer knows there are weak spots out in the fields.

Soybeans are for the most part continuing to grow and have good color. Very little or no fungicide is being applied in the area.

No pests to report in any of the crops.

USDA has come up with big numbers once again in the August crop report, but we don’t see it in this neck of the woods. ACRE program deadline is passed, so I hope everyone is happy where they are at on the farm programs.

Ted Kuebrich, Jerseyville, Jersey County: The crops in Jersey County look very good.

The early-planted corn is in the dent stage and the ears are good size and sticking out of the end of the shucks. The early-planted beans are waist tall and filled with pods and blooms. The weather was very nice last week with the temperatures in the mid-80s. Some of the corn in the lower parts of the fields is starting to fire from standing in water off and on during the summer. Cash corn, $3.37; new corn, $3.11; January corn, $3.21; cash beans, $11.72; new beans, $10.11; January beans, $10.24.

FarmWeek Page 7 Monday, August 17, 2009

CROPWATCHERS Dan Meinhart, Montrose, Jasper County: No rain this past week. Temperatures were in the upper 80s and lower 90s. On a road trip to Grayville on Route 130, we saw a lot of wheat stubble fields that were not planted to double-crop beans. There were also a few fields of corn that had not tasseled as of yet. Soybean fields continue to be sprayed with herbicides.

Cornfields are being sprayed with fungicides.

Reports are 10,000 acres in Jasper County were not planted this year. Surrounding counties have similar situations. There are chances of rain this week with cooler temperatures. This is the first time in two years that we are really in need of a rain.

Bob Biehl, Belleville, St. Clair County: We received 0.3 to 0.4 of an inch of rain last week.

With the cards we’ve been dealt this spring and early summer, things look about as good as they can. Too early to do any yield numbers yet. Some of the later May-planted corn will give us a good estimate in about a week or two. Beans are just blooming, and pods are nowhere in sight.

Kevin Raber, Browns, Wabash County: The weather has warmed up and we are drying out. It feels like August now. The corn crop looks good. Sunny and warmer days have helped the corn and soybeans both move faster toward maturity. The Wabash County yield tour for corn is Aug. 26. After that, we will have a better feel for what the county average will be.

Dean Shields, Murphysboro, Jackson County: Another week with a little bit of rain here and there, an inch to 1.5 inches in some places. It is sure keeping our grass growing, and we’ve been mowing every week. That’s unusual for August in Southern Illinois. Flying over the crops in Jackson County, I found the crop looks good from the road. But I think the proof in the pudding will be how many holes are out in the fields and how uneven the stands are.

As a whole, the corn and soybeans look pretty good. Time will tell. Haven’t reported too much on milo. Milo acres are down in Southern Illinois, I believe. It’s heading out now and looking pretty decent.

Ken Taake, Ullin, Pulaski County: Dust is blowing in Southern Illinois. It’s been a week and a half since the last rain. I think that is the longest we have gone all season without rain. Grass is still green, crops have good color, and some of the early corn is starting to shade just a little bit. I heard of some Group II soybeans that may get cut at the end of this week. Pulaski County fair is this week, and we usually get a rain the week of the fair. We are still spraying soybeans for weeds. With all the rain we have had, the weeds seem to just keep on coming. There is some fungicide being applied on both corn and soybeans.

Reports received Friday morning.

Big crops coming

Record number of ears key to lofty yield projections Beans could set record

BY DANIEL GRANT FarmWeek

U.S. farmers are projected to be on pace this season to harvest the largest soybean crop and second-largest corn crop on record.

USDA in its August crop report projected soybean production this fall will total

FarmWeekNow.com Details of the USDA August crop production report are available at FarmWeekNow.com.

3.2 billion bushels, an 8 percent increase from last year, while corn production will total 12.8 billion bushels, which would be a 5 percent increase from last year.

The national corn yield (159.5 bushels per acre) was the largest ever projected in the month of August by USDA and would be up 5.6 bushels from last year. Soybean yields were projected to average 41.7 bushels per acre, up 2.1 bushels from a year ago.

Soybean production this year was expected to top the previous record set in 2006 because the acres for harvest (76.8 million) are up 3 percent compared to last year.

However, the surprise of the report probably was the corn production estimate.

Many analysts expected a significant downward revision of acres, but USDA lowered its estimate of harvested acres by just 100,000 acres.

The reduction of corn acres was split evenly between Illinois and Iowa.

“We did an extra (farmer)

survey of corn acres and we also accessed satellite imagery,” said Joe Prusacki, director of the statistics division at the National Agricultural Statistics Service (NASS). “And we only found a slight reduction in harvested area.”

The major finding by NASS in its corn production estimate was a record amount of corn ears — totaling 27,500 per acre. Prusacki credited the record number of corn ears to higher plant populations and possibly second ears on some plants.

“There are ears out there — a record number,” Carol House, chairperson of the USDA Agricultural Statistics Board, told participants of the Illinois Farm Bureau Marketers to Washington trip. “We’ve never seen anything quite like it.”

USDA’s crop production estimates last week were the first for the current crop that used objective yield surveys and farmer surveys. Prusacki noted the August crop report typically has the highest margin for error, particularly for beans which rely heavily on August weather to determine final yields.

“Our assumption at this point is a normal weather pattern from here on out (to harvest),” House noted. “If not, the projections will have to be changed.”

Ending stocks of soybeans (210 million bushels) last week were down 40 million bushels from July as reduced supplies were only partly offset by reduced crush and exports. Ending stocks of corn and wheat were projected to increase by 71 million bushels and 36 million bushels, respectively.

Steve Launius, left, a farmer from Washington County, and Tom Feltes, right, a farmer from DuPage County, discuss the potential of this year’s crop with Rajiv Shah, center, USDA undersecretary for research, education, and economics, after the release of the Aug. 12 crop report at USDA headquarters. David Logsdon, a farmer from Gallatin County, looks on in the background. Participants of the IFB Marketers to Washington trip last week witnessed the USDA lockup and release of the highly anticipated report. (Photo by Daniel Grant)

Climate Continued from page 1 emissions compliance costs, he said.

Under House provisions, Looney warned, allowances would be auctioned, pitting smaller refiners against not only major oil companies but also bidders who “can buy (allowances) and have no obligation,” such as large financial institutions hoping to accumulate and resell carbon “credits.”

Looney fears investor activity and speculation could further drive allowance prices out of small refiners’ reach. As refiner costs escalate, Midwest utilities forced by emissions caps to move away from coal-fired generation would have to contend

with rising natural gas prices — another pass-through for rural consumers.

Offsets off the mark?

Looney rejects the notion that producers would see more significant benefits than costs related to House cap-and-trade legislation by generating marketable emissions “offsets” through forestry, tillage, and other practices that trap or “sequester” emissions.

He commended House Ag Chairman Collin Peterson’s (DMinn.) insistence that USDA oversee the proposed ag offsets “market” rather than the U.S. Environmental Protection Agency.

But the current Senate climate blueprint reportedly does

not include House ag provisions, and Looney urged Senate Ag Chairman Tom Harkin (DIowa) and other farm state senators to reject the House plan in favor of “their own bill that’s going to pay attention to rural communities and farmers.”

Nonetheless, he said, “Those farmers who decide to try to sequester carbon and get some credits and earn some income will be far fewer than the 2 million farmers who are going to have to pay the increased cost of diesel and gasoline.”

“We don’t see the 350,000 farmers in our system all going to sequestering carbon and selling credits to offset costs,” he said.

FarmWeek Page 8 Monday, August 17, 2009

REGULATIONS

IDNR offering online hunter safety education option

BY KAY SHIPMAN FarmWeek

Illinois hunters may now fulfill the state hunter safety education requirement by taking an online course toward a hunter safety certificate.

The Illinois Department of Natural Resources (IDNR) is coordinating two free online courses along with the traditional classbased hunter safety course.

However, the online course doesn’t replace the one-day

field day requirement, according to Chris McCloud, IDNR spokesman.

State law requires anyone born on or after Jan. 1, 1980, to pass a hunter safety education course before he or she can obtain an Illinois

hunting license.

Traditional hunter safety courses, which are coordinated by IDNR, are taught by volunteer instructors. A minimum of 10 hours of instruction is involved.

In addition, many states

IDNR outlines changes for archery, youth deer permits The Illinois Department of Natural Resources (IDNR) is offering remaining non-resident archery deer combination permits (one for either sex and one for antlerless only) on a first-come, firstserved basis.

Hunters may buy remaining permits over the counter from a license vendor, online via the IDNR website at

{http://dnr.state.il.us}, or by calling tollfree 1-888-673-7648.

Non-resident hunters who applied for a combination archery permit in June are to receive their permits in the mail by midAugust.

Illinois resident deer hunters will be able to buy archery deer hunting permits — both combination archery and antler-

less-only permits — over the counter from IDNR direct permit sale locations around the state. The archery deer season opens Oct. 1.

The Illinois youth either-sex firearm deer hunt will be Oct. 10-11. Starting in September, permits for that season will be available over the counter from IDNR direct license and permit vendors.

now require hunters of all ages to prove they have completed a hunter education course before the state issues a non-resident hunting license.

Information about the online courses, which are offered by HunterExam.com and Hunter-Ed.com, is available from the IDNR website at {www.dnr.state.il.us/safety}.

Click on the “Hunter On-line Study” icon on the left side.

McCloud didn’t know how many individuals have used the online courses that became available in July, but he speculated the new option is being used because it’s convenient and individuals can work at their own pace.

The Internet-based study must be completed before a hunter attends a field day, and all students attending a field day will be required to provide a field day voucher from the online course provider and valid identification.

Information about safety education and field day classes will be available from IDNR’s website or by calling 800-832-2599.

Tri-state food meeting to focus on policy People from Illinois, Iowa, and Missouri interested in local foods will gather Sept. 4 at the Tri-State Local Food Conference in the Fairfield Arts and Convention Center, Fairfield, Iowa. The meeting will run from 10 a.m. to 4 p.m.

The early registration deadline is Aug. 31.

One of the main issues will be development of food systems. Speakers will include Rich Pirog, associate director of the Leopold Center for Sustainable Agriculture; Sarah Hultine, University of Missouri community development specialist; and Lindsay Record, local food coordinator with the Illinois Stewardship Alliance.

Among the issues to be discussed will be increasing local foods served at schools, hospitals, assisted living quarters, and in nursing homes. Speakers also will focus on economic benefits of local food systems.

Advance registration is $45. Discounts are available for students and Buy Fresh Buy Local members. To register, contact Elisabet Humble at 641-472-6177 or go online to {www.travelfairfieldiowa.com}.

FarmWeek Page 9 Monday, August 17, 2009

ENVIRONMENT

Project restoring Illinois River depth, creating island

BY KAY SHIPMAN FarmWeek

High river levels ironically delayed work on dredging the Illinois River near Peoria, but the first phase of a project is under way.

It should be done by the end of 2009, according to Marshall Plumley, the Illinois River basin integrator for the Rock Island District of the U.S. Army Corps of Engineers.

“We had high water all spring and summer that slowed us down,” Plumley told FarmWeek.

The project, north of the McClugage Bridge in the Peoria Lake area, will dredge 55 acres of sediment from the river bottom and use the silt to create a 21-acre island.

The goal is to restore some of the deep-water habitat and increase the depth for boaters.

In the Peoria Lake area, sedimentation has reduced the estimated maximum depth from 8 feet to as shallow as 1 to 2 feet in some areas. The loss of depth has negatively

impacted overwintering, spawning, and nursery habitat for fish.

The man-made island will be a repository for material, primarily silt, dredged from the river.

The project’s first phase, costing $2.72 million, entails filling 200-foot-long containers that are 45 feet in diameter with dredged sediment. Plum-

ley described the geotextile containers as resembling “big sausage casings.” Filled containers, lined three deep, will be placed in a boomerang shape, outlining the future island.

The second phase of the project will involve stacking another layer of filled containers on existing ones, adding rock for habitat and

erosion protection, and then filling in the island with dredged material.

Plumley said the Corps is waiting for federal funding to be released for the next phase.

Depending on funding, the construction on phase two could begin in 2010.

Motorists’ best view of the project is from the McClugage Bridge while driving from

East Peoria to Peoria, according to Plumley.

The dredging/island project will not be a formal part of the upcoming Governor’s Illinois River conference (See accompanying story), according to Plumley, a member of the conference planning committee. However, sediment management and ecosystems are among the session topics.

Governor’s Illinois River conference to cover range of issues River-related issues, including agricultural practices and technology, will be discussed Oct. 20 to 22 at the 12th biennial governor’s conference on the Illinois River. Conference sessions, at the Hotel Pere Marquette in Peoria, will be preceded by a daylong watershed conservation tour. Early registration deadline is Sept.

30.

Registration materials are available online at {www.conferences.uiuc.edu/ilriver} or by calling the University of Illinois Office of Conferences and Institutes toll free at 877455-2687.

Community colleges networking on renewable energy challenges Community colleges across Illinois are focusing on renewable energy education, technology, and conservation as part of a statewide network.

Over 13 months, the Illinois Community College Sustainability Network expanded from the four founding colleges to now include all 48 community colleges in Illinois.

“Instead of doing what we do in an isolated way, we are sharing what we’re doing, saving time, and making us more efficient,” said Girard “Jerry” Weber, president of the College of Lake County, Grayslake.

The network was founded by Heartland Community College, Bloomington; Kankakee Community College, Kankakee; Lewis and Clark Community College, Godfrey; and Wilbur Wright College, Chicago. The goal is to educate college students, staff, and their communities about energy issues and to prepare students for careers in energy fields.

“It’s also a good way to model (energy) sustainability for the community,” said Julie Elzanati, coordinator of Heartland’s Green Institute.

Network members want to address the state’s need for a renewable energy workforce, while promoting and modeling use of renewable energy technology on their campuses. In addition, the colleges are sharing information about their new energy curriculums.

The four original network members each has a special program dedicated to renewable energy, such as Heartland’s Green Institute; however, not all 48 network colleges have centers, said Elzanati. “The sustainability network is very young,” she added.

Each college is concentrating on its strengths and/or resources. Heartland is concentrating on geothermal energy, while Lewis and Clark is working with hydro power, Elzanati explained. The colleges want the state to become a national leader in workforce training for renewable energy technology and energy conservation.

“We’re exploring how we can use renewable energy,” Weber said of his college’s interest in geothermal and solar energy.

As the colleges develop their network, Elzanati encouraged business and community leaders to let the colleges know the types of education and training that are needed.

Information about the network and its members is online at {www.ilccsn.org}. — Kay Shipman

The conservation tour will include a stop at the Emiquon wetland complex, the Dickson Mounds Museum, and a U.S. Geological Survey site where streamflow data is collected and transmitted.

The tour is open to the public on a first-come basis, costs $40, and includes a meal.

On Oct. 20, Gov. Pat Quinn will host a public forum as part of the Illinois River Coordinating Council meeting.

On Oct. 21, U.S. Secretary of Transportation Ray LaHood is scheduled to give the lunch keynote address, while former Lt. Gov. Bob

Kustra will give a state historic perspective.

A panel of legal experts will focus on water law and court interpretations.

Concurrent sessions will cover agricultural technology, benefits of healthy ecosystems, and successful community actions, such as stormwater management and shoreline protection.

On Oct. 22, habitat restoration, community development, and sediment monitoring will be among the topics.

An exhibit hall and an interactive showcase of digital technologies will be part of the conference.

The full conference regis-

tration fee, which includes five meals and the opening reception, is $175 by the early registration deadline.

The Wednesday-only fee is $115, and the Thursday-only fee is $75.

After Sept. 30, fees increase by $40. On-site registration fees increase by another $5 per day, making the full conference fee $225.

The hotel has set aside a block of rooms with special rates until Sept. 29.

The conference schedule, including speaker information, is available online at {www.conferences.uiuc.edu/ilr iver} or by calling Michelle toll free at 877-455-2687.

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FarmWeek Page 10 Monday, August 17, 2009

EVENTS

Half Century of Progress to put emphasis on ‘big’

A vintage tractor enthusiast picks corn during a previous Half Century of Progress antique power show in Rantoul. Fieldwork demonstrations with the use of vintage farm equipment once again will be the focus of this year’s show. (File photo by Daniel Grant)

Organizers of the Half Century of Progress antique power show are planning a “big” event later this month.

The event, Aug. 27 through Aug. 30 at the National Aviation Center Airport in Rantoul, will feature what reportedly is the world’s largest farm tractor (Big Bud), a big American flag that is 65 feet tall and 120 feet wide that will fly over the area, and an appearance by the monster truck “Big Foot.“ The 747 Big Bud farm tractor features a 16-cylinder Detroit Diesel engine, according to show organizers. Big

Bud not only will be on display at the show, but it also will be used in fieldwork demonstrations.

The emphasis for the Half Century of Progress show once again will be fieldwork conducted with vintage farm equipment.

More than 400 acres of crop demonstration plots were planted in April, despite challenging conditions, and will be ready to harvest during the show. Meanwhile, late-planted corn at the site will be cultivated with the use

‘ T h i s s h ow h a s become famous b e c a u s e i t ’s a magnificent f l a s h b a ck fa r m equipment show.

People come to Rantoul to see things they haven’t seen since they were young.’

— Max Armstrong Show organizer

of horses and vintage tractors.

“This show has become famous because it’s a magnificent flashback farm equipment show,” said Max Armstrong, a farm broadcaster and show organizer. “People come to Rantoul to see things they haven’t seen since they were young.”

Armstrong on Aug. 27 will lead the annual parade of tractors on a 50-mile ride through northeastern Champaign County.

The parade of tractors will stop at the I & I Museum in Penfield where participants can see the world’s first production gasoline tractor (a 1903 Hart-Parr) and the one-ofa-kind 1960 experimental IH gas-turbine-powered HT 340 hydrostatic drive tractor on loan from the Smithsonian Institution National Museum of American History.

The gates will open at 7 a.m. each day during the show.

For information about the show, visit the website {www.halfcenturyofprogress.com} or {www.halfcenturyofprogress.org}.

FarmWeek Page 11 Monday, August 17, 2009

FB IN ACTION

Chicago Kid’s Health Fair big hit for county FBs, adopted legislators

BY DAVE MEEKER

Cass/Morgan, Cook, Gallatin, Macon, and Saline County Farm Bureaus distributed more than 3,000 backpacks filled with school supplies to children for the upcoming school year during a recent Kid’s

Health Fair in Chicago in which three adopted legis-

lators participated.

The county Farm Bureau

LEGISLATORS TOUR RAIL SHUTTLE

Schuyler County Farm Bureau’s adopted legislator, Sen. Christine Radogno (R-Lemont), Senate Minority Leader, listens as Western Grain Marketing Rail Shuttle manager Gordon Miller (in T-shirt) explains his Adair operation to, from left, Sen. John Sullivan (DRushville) and Schuyler County Farm Bureau President Kent Prather. In background is county Farm Bureau board member Leroy McClelland. The facility, one feature during Radogno’s daylong visit to the county, has more than 4 million bushels of storage capacity and is capable of loading more than 90 100-car trains per year destined for such places as Texas, Mexico, southern California, and the Pacific Northwest. It plans to start taking grain this week. (Photo by Schuyler County Farm Bureau manager Kelly Westlake)

SCFB ADOPTED VISITOR

Rep. Art Turner (D-Chicago) visited with his adopted farmers in Scott County recently, attending the annual Pike and Scott County Farm Bureau (SCFB) steak fry, breakfasting with a group of farmers in Winchester, visiting the Consolidated Grain and Barge facility at Naples, and touring beef and grain farms in the area. Here, Representative Turner, Deputy Majority Leader in the Illinois House, left, visits with Bob Smith (plaid shirt), past president of SCFB; Wayne Brown, a member of the SCFB board; and Rhoda and Mark Vortman, whose grain farm was toured. Mark Vortman is the current president of SCFB. (Photo by Christian Nourie, northeast legislative coordinator for Illinois Farm Bureau)

booth at the fair was visited

by Chicago Democrats state Sen. William Delgado (adopted by Saline and Gallatin County Farm Bureaus), state Rep. Cynthia Soto (adopted by Macon CFB), and state Rep. Luis Arroyo (adopted

by Cass-Morgan CFB).

Volunteers were: Macon – Patty Loveall and Jennifer Edgecombe; Cass/Morgan – Roger and Linda Hardy; Gallatin – Hugh David Scates; Cook – Cook County FB manager Bob Rohrer and Don Bettenhausen; Saline – Jim Haney and Sam DeNeal; Illinois Farm Bureau’s northwest legislative coordinator Christina Nourie; and Saline and Gallatin CFB manager David Meeker.

Each of the counties brought items ranging from safety and nutrition information to pens and erasers (the pig erasers were a big hit among the students).

Sponsors in addition to the county Farm Bureaus included Country Financial, the Illinois Pork Producers Association, the Illinois Beef Association, and the Illinois Dairy Association.

“We had an extraordinary amount of face time with the legislators this year in hopes of setting up county visits as well as finding out the concerns

Macon County Farm Bureau’s adopted legislator, Rep. Cynthia Soto (DChicago), right, chats with, from left, Saline County Farm Bureau Vice President Sam DeNeal, Gallatin County Farm Bureau President Hugh David Scates, and Saline County Farm Bureau Secretary Jim Haney during a recent Kid’s Health Fair in Chicago. (Photo courtesy of Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)

for their areas,” said Cass/Morgan President Roger Hardy.

Sweet corn Gallatin County FB President Hugh David Scates brought for the legislators proved a big hit.

Organizers estimated more than 6,000 students and parents walked through the health fair this year.

“This is my first trip, and it is worth the time to bring information and sup-

plies to the children in our adopted legislator’s district as well as have a great visit with the urban legislators to hear their various concerns for their district as well as concerns FOR the agricultural industry,” said Scates.

David Meeker is manager of Gallatin and Saline County Farm Bureaus. He can be reached at 618-272-3531 (Gallatin) or 618252-6992 (Saline).

FarmWeek Page 12 Monday, August 17, 2009

FROM THE COUNTIES

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UREAU — Farm Bureau will sponsor an advanced marketing seminar at 6 p.m. Thursday at the Farm Bureau office. Scott Stoller, Michlig Ag Inc.; Brandon Carlson, Northern Grain Marketing; and Dan Aubrey, Consolidated Grain, will be the speakers. Call the Farm Bureau office at 815-875-6468 for reservations or more information.

• Farm Bureau will host the District 4 meeting at 4:30 p.m.

Monday, Aug. 24, at Wise Guys, Princeton. Illinois Farm Bureau President Philip Nelson will be the speaker. Call the Farm Bureau office at 815-8756468 by Monday (today) for reservations or more information.

• An informational meeting for an upcoming Nova Scotia tour will be at 10 a.m. Thursday at the Buda FS facility. The tour will be Aug. 21-29, 2010.

Call the Farm Bureau office at 815-875-6468 for reservations or more information.

• Farm Bureau will sponsor a train trip Thursday, Sept. 10, to the Chicago Board of Trade.

The group will leave from Princeton. Call the Farm Bureau office at 815-875-6468 for reservations or more information.

ALHOUN — The Calhoun County Fair will be Sept. 10-13. Stop by the Farm Bureau booth and play

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Auction Calendar Mon., Aug. 17. 9 a.m. Closing Out Farm Auction. Bob Green, MATTOON, IL. Bauer Auction.

Mon., Aug. 17. 10 a.m. 291 Acres, Adams and Hancock Co., IL Land Auction. Dorothy B. Robbins Estate, GOLDEN, IL. Sullivan Auctioneers, LLC. Thurs., Aug. 20. 10 a.m. Land Auction.

Estate of William Duriavich, KIRKLAND, I L. Wegener Auctions.

Fri., Aug. 21. 10 a.m. Land Auction.

Gary Asher and Sharon Chace, GIBSON CITY, IL. Bill Kruse, Auctioneer.

Fri., Aug. 21. and Sat., Aug. 22. 8:30 a.m. both days. Consignment Sale.

ANNAWAN, IL. Hatzer and Nordstrom Eq. Co. Sat., Aug. 22. 12:30 p.m. Land Auction. Don and Mike Busch, CALEDONIA, IL. Gordon Stade, Auctioneer.

Sat., Aug. 22. 10 a.m. Wayne Co. Real Estate. Mr. and Mrs. Greg Gottfriedt, CISNE, IL. Barnard Auctions.

Sat., Aug. 22. 10 a.m. Farm machinery.

Laverne Anderson, PAXTON, IL. Bill Kruse, Auctioneer.

Sat., Aug. 22. 10 a.m. Farm machinery.

William A. and Pernecy B. Young Estate, COFFEEN, IL. Langham Auctioneers.

Sat., Aug. 22. 10 a.m. Farm machinery and antiques and collectibles. Rebecca Ward Espe Estate and Adeline Ward, SHABBONA, IL. Espe Auctioneering.

Sat., Aug. 22. 10 a.m. Farm Closeout Auction. Bill and Nancy Gossett, ROSEVILLE, IL. Van Adkisson Auction Service, LLC. Sat., Aug. 22. 1 p.m. 432 Ac. Quality Farmland. Raymond K. Barham Estate, SALEM, IL. Carson Auction & Realty Co. Sun., Aug. 23. 11 a.m. Farm machinery and miscellaneous. John Muirhead Farms, PLATO CENTER, IL. Gordon Stade, Auctioneer.

trivia to win a corn, wheat, or soybean treat bag.

OLES — The membership picnic and silent auction for the Coles County Foundation will be at 5:30 p.m.

Friday at the Morton Park East Pavilion, Charleston. Dinner will be served. Call the Farm Bureau office at 345-3276 or 234-2125 for reservations or more information.

ORD-IROQUOIS — Farm Bureau will sponsor a commodity price outlook meeting at 7 p.m. Tuesday at the Farm Bureau office. Dave Dickey, WILL AM 580 director of agricultural programming, will lead the panel discussion.

The panelists are Bill Mayer, Strategic Farm Marketing; Chuck Shelby, Risk Management Commodities; and Mike Georgy, Allendale Inc. Call the Farm Bureau office for more information.

RUNDY — Farm Bureau is sponsoring a bus trip Wednesday, Sept. 2, to the Farm Progress Show, Decatur. Cost is $33, which includes admission and bus.

The bus will leave the Farm Bureau office at 7 a.m. Dinner at the Home Town Buffet will be at your own expense. Call the Farm Bureau office at 815942-6400 for reservations or more information.

• The Marketing Committee and McArdle Grain and Commodities will sponsor a market outlook meeting at 7 p.m.

Tuesday, Sept. 15, at the American Legion, Mazon. A pizza buffet will be served. The panel will feature Dave Dickey, WILL AM 580, as moderator.

Call the Farm Bureau office at 815-942-6400 for reservations or more information.

• Farm Bureau will sponsor a bus trip Thursday, Sept. 17, to the Cubs vs. Brewers game.

Tickets are $45 for members and $50 for non-members. Call the Farm Bureau office at 815942-6400 for reservations or more information.

ANCOCK — West Central FS and the Marketing Committee will sponsor a biodiesel and ethanol promotion from 10 a.m. to 1 p.m. Wednesday at the Fuel 24 Station, Carthage. The biofuels will be discounted. Free hot dogs, chips, and soda will be served to customers.

ENRY — Farm Bureau and Henry and Stark Extension will sponsor an “Annie’s Project - Education for Farm Women” course. The five-session course will be from 6:30 to 9 p.m. Monday and Wednesday, Aug. 24, 26, 31, and Sept. 2 and 9 at Black Hawk East Community Education Center, Kewanee. Cost is $50, which includes all sessions and materials. Call the Henry and Stark Extension office at

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309-853-1533 or the Farm Bureau office at 309-937-2411 for more information.

ANKAKEE — Farm Bureau will sponsor an “On the Road” seminar at 6 p.m. Tuesday, Sept. 15, at the University of Illinois Extension, Bourbonnais. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker.

Trucking regulations will be discussed. Call the Farm Bureau office at 815-932-7471 for reservations or more information.

NOX — A defensive driving course will be from 10 a.m. to 3 p.m. Wednesday and Thursday at the Knox Agri Center. Cost is $15, which includes lunch. Those who complete the course are eligible for a discount on their auto insurance. Call the Farm Bureau office at 309-342-2036 for reservations or more information.

• An Agronomy Day will be from 1:30 to 4:30 p.m. Friday at the new Riverland FS facility, Monmouth Blvd., Galesburg.

John McGillicudy, an agronomist, and Howard Brown, GROWMARK’S manager of agronomy services, will be the speakers. Call the Farm Bureau office at 342-2036 or visit the website at {www.knoxcfb.org} for more information.

• Knox, Warren-Henderson, Fulton, and McDonough County Farm Bureaus will sponsor a local government conference program at 12:30 p.m. Wednesday, Aug. 26, at Café Roma, Macomb. Lunch will be served. Call the Farm Bureau office for more information.

• Farm Bureau will sponsor an “On the Road” program at 7 p.m. Monday, Aug. 31, at the Knox Agri Center. Kevin Rund, senior director of local government, will be the speaker. Trucking laws will be discussed. Call the Farm Bureau office at 342-2036 for reservations or more information.

• Farm Bureau and WarrenHenderson County Farm Bureau will sponsor a bus trip Wednesday, Sept. 2, to the Farm Progress Show, Decatur.

The bus will leave the WarrenHenderson County Farm Bureau office at 5:30 a.m. and Knox Agri Center at 6 a.m.

Cost is $45, which includes entrance to the show. Call the Farm Bureau office at 3422036 for reservations or more information.

ASALLE — LaSalle, Will, Grundy, and Kendall County Farm Bureaus will sponsor a bus trip Wednesday, Sept. 2, to the Farm Progress Show, Decatur. Cost is $33. Dinner at the Home Town Buffet will be at your own expense. Call the Farm

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Bureau office at 815-433-0371 for reservations or more information.

• Attend the LaSalle County 4-H and Junior Fair tractor pull Friday, Sept. 4. No advance tickets are being sold. Food and drink will be available at the 4-H Federation stand. Call the Farm Bureau office at 815433-0371 for more information.

IVINGTON — Farm Bureau will sponsor an “On the Road” seminar at 7 p.m. Monday (today) at the Farm Bureau office. The seminar will focus on new trucking rules. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 815-842-1103 for reservations or more information.

CDONOUGH — Farm Bureau will sponsor a local government conference at 12:30 p.m.

Wednesday, Aug. 26, at the Vineyard Community Church, Macomb. Kevin Rund, Illinois Farm Bureau senior director of local government, and Brenda Matherly, Illinois Farm Bureau assistant director of local government, will discuss rural development and local road funding. Lunch will be served.

Call the Farm Bureau office at 837-3350 by Friday for reservations or more information.

• The first annual Ag in the Classroom golf outing will be at 8 a.m. Saturday, Aug. 29, at Gold Hills. Cost is $50, which includes, golf, cart, and lunch.

All proceeds will benefit Ag in the Classroom. Call the Farm Bureau office at 837-3350 by Monday, Aug. 24, for reservations or more information.

ONROE — The Mon-Clair Corn Growers test plot program will be at 6:30 p.m. Wednesday, Aug. 26, at Greg Guenther’s farm, Belleville. Robert Bellm, University of Illinois Extension educator, and Phil Seaman, Abengoa Bioenergy grain merchandiser, will be the speakers. Dinner will be served. Call the Farm Bureau office at 939-6197 or 233-6800 for reservations or more information.

EORIA — A grassroots picnic will be at 6 p.m.

Thursday, Aug. 27, at Farm Bureau park. Call the Farm Bureau office at 686-7070 by Monday, Aug. 24, for reservations or more information.

• Farm Bureau will sponsor a bus trip Wednesday, Sept. 2, to the Farm Progress Show, Decatur. Cost is $25. Call the Farm Bureau office at 6867070 for reservations or more information.

• Deadline to submit pictures for the photo contest is Sept. 1. First, second, and

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third place cash awards will be given in three categories: farmrelated scenes and activities; nature and wildlife; and barn scenes. There also will be a Best of Show cash award.

ERRY — An ice cream social will be from 6 to 9 p.m. Friday at the south pavilion at the Perry County fairgrounds. Agriculture in the Classroom will provide activities for the children.

• A defensive driving course will be from 8:30 a.m. to 12:30 p.m. Wednesday and Thursday, Sept. 23-24, at the Farm Bureau office. Cost is $12 for AARP and Farm Bureau members and $14 for non-members.

Call the Farm Bureau office at 618-357-9355 for reservations or more information.

• Perry County Farm Bureau Foundation has a $1,000 Tyler Smith Memorial Scholarship available. Applications are available at the Farm Bureau office and must be returned by Friday, Sept. 25. Call the Farm Bureau office at 618-357-9355 for more information.

ANGAMON — The Young Leaders and Marketing Committees will sponsor their annual corn yield survey at 7:30 a.m. Friday, Sept. 4, at the Farm Bureau office. Lunch will be served. Call the Farm Bureau office at 753-5200 for more information.

• The Marketing Committee will sponsor its annual AgriVisor steak fry meeting at 6:30 p.m. Monday, Aug. 31, at the Tom Modonia Park. Dale Durchholz, AgriVisor LLC, will be the speaker. Cost is $10. Call the Farm Bureau office at 753-5200 for reservations or more information.

CHUYLER — The Schuyler Extension office will sponsor a prairie restoration meeting at 1:30 and 6 p.m. Monday, Oct. 5, at the Extension office. Ken Robertson and Don Gardner will be the speakers. Call the Extension office at 217-322-3381 by Oct. 1 for reservations or more information.

ERMILION — The Farm-City Gathering will be at 5:30 p.m. Thursday, Aug. 27, at the International Greenhouse Co. on Georgetown Road, Tilton. The program will include a presentation on the greenhouse company and history of horticulture operations in Vermilion County. Ag awards will be presented by the Agri-Business Council.

Tickets are $8.50 and are available at the Farm Bureau office.

Deadline to purchase tickets is Friday.

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

FarmWeek Page 13 Monday, August 17, 2009

GROWMARK

GROWMARK division keeps the wheels turning

BY AMY BRADFORD

Whether there is a need for on-farm grain storage, commercial grain systems, sprayers, delivery vehicles and pickup trucks, or professional engineering services, GROWMARK’s facility planning and supply division has a hand in making it happen.

“Our division supplies equipment and engineering expertise to the GROWMARK System,” said Tom Nealey, facility planning and supply division manager. “Our dedicated team may be small in number, but the role we play is vital to ensuring the member cooperatives have the physical tools they need” to help the farmers they serve.

The division is comprised of five departments: facility equipment, tank and truck centers, grain systems, commercial grain systems, and NewTech Engineering and Environmental LLC, a wholly owned subsidiary of GROWMARK. The individual units often work collectively and/or with other GROWMARK divisions on specific projects.

For example, the facility equipment department joins forces with both the agronomy and energy divisions to develop the trucks and other equipment local FS organizations need. Rolling stock, including sprayers, spreaders, delivery vehicles, and pickup trucks, are then purchased through national vendor programs. “These volume purchases translate into lower operational costs which ultimately lowers costs for FS customers,” said Randy Meseke, facility equipmentpetroleum manager.

Two tank and truck centers, in Waterloo, Iowa, and Yorkville, Ill., build, customize or repair the liquid fuel and LP delivery trucks and other equipment used by local FS companies. The centers also provide products and services

GROWMARK annual meeting set Aug. 27-28 More than 1,000 GROWMARK employees, member cooperative directors and staff representatives, and guests are expected to gather for “Strategies for Success,” the GROWMARK annual meeting Aug. 27-28 at the Hilton Chicago.

Four of GROWMARK’s 16 director seats are up for election this year. GROWMARK has six “governance” zones covering North America, with multiple directors serving each. One director-at-large each represents Illinois, Iowa, and Wisconsin Farm Bureaus.

New directors will serve three-year terms.

Sixth of a series to local independent businesses, and maintain a large parts inventory, offer meter calibration, Department of Transportation inspections, custom painting and welding, and LP tanks.

The grain systems department is expert at on-farm storage solutions. Because of long-standing relationships with national grain systems vendors, customers have

access to the most up-to-date products, resources, and training.

The division’s commercial grain facilities general contracting and design expertise is being put to use at Western Grain Marketing LLC (in Adair, Ill.), a 100-car rail shuttle loader facility.

That facility will accept grain this fall.

GROWMARK facility planning and supply also employs professional engineers to design and construct facilities needed by FS member companies and other rural businesses.

NewTech Engineering and Environmental LLC offers, among other services, consulting and facility planning, con-

AgVantage FS delivery trucks shown are in for maintenance at the GROWMARK tank and truck center at Waterloo, Iowa. (Photo courtesy of GROWMARK)

cept design, permitting assistance, construction/project management, and start up assistance. The company specializes in fertilizer storage facilities, bulk petroleum

plants, and grain facilities.

Amy Bradford is GROWMARK’s corporate communications manager. Her e-mail address is abradford@growmark.com.

FarmWeek Page 14 Monday, August 17, 2009

PROFITABILITY

Plan now for autumn P, K applications

BY ROD WELLS

Oh, what a difference a year makes! Last year the fertilizer industry was abuzz over the rapidly rising costs of all products.

Up and down the supply chain, from growers to dealers to wholesalers to manufacturers, everyone was Rod Wells fighting to lock down supply before further price increases took effect.

You know the rest of the story. The general economic downturn did not leave agriculture untouched.

Growers scrambled to find ways (unsuccessfully) to make a profit based on the eroding grain prices and historically high input costs. Demand for fertilizer products was destroyed, inventories rose, and prices crumbled.

And now comes this year. If last year could be described as a feeding frenzy, this year those in the fertilizer industry are trying to recover from the resulting tummy ache.

Across the fertilizer supply chain, folks are sitting on the sidelines waiting for buying activity at the farm gate to pick up, and there are reasons it should.

As I write this, December 2010 corn seems to have taken an upturn from its recent decline. Additionally, weatherconditions across the globe have led to crop yield projections in

many areas that can be characterized as “uncertain” at best.

The drop in fertilizer costs to current levels has been well documented. It would appear that for many farms there is potential to lock in a good operating margin by selling corn and purchasing nitrogen and phosphorus.

This is the same strategy that many producers employed in June before corn prices began to fall, resulting in 50 percent or more of normal fall ammonia movement being locked up in parts of Illinois.

Another good reason to plan for fall plant food application is to maintain high yield potential. In some cases, soils are being “mined” of P and K as fertilizer application rates have not kept up with crop removal. Some areas are reporting nutrient deficiency in crops right now.

As the industry waits, one thing seems certain — the inventory pipeline up and down the supply chain is low, very low. The time is coming for plant food products to be positioned to assure fall availability.

In what is shaping up to be a late season, it will be critical to have a plan in place to assure both supply and timely application.

If you haven’t already done so, please consult with your FS crop specialist to put together your plan for the fall of 2009.

Rod Wells is GROWMARK’s director of agronomy sales and operations. His e-mail address is rwells@growmark.com.

M A R K Feeder E T pigFA CTS prices reported to USDA* Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $3.00-$31.25 $23.35 n/a n/a n/a n/a This Week Last Week 14,566 18,510 *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 $45.67 $46.84 $33.80 $34.66

Change -1.17 -0.87

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

This week 82.42 82.00

Prv. week 81.02 80.99

Change 1.40 1.01

Lamb prices Confirmed lamb and sheep sales This week 1,253 Last week 732 Last year 984 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $98; 110-130 lbs., $90.00-$96.00. Good and Choice 1-2: 60-90 lbs., $105.

Slaughter Ewes: Utility and Good 1-3: $26-$29. Cull and Utility 1-2: $26.

Export inspections (Million bushels)

Week ending Soybeans Wheat 08-06-09 9.6 14.4 07-30-09 5.0 13.6 Last year 11.6 33.5 Season total 1196.3 130.7 Previous season total 1090.8 229.9 USDA projected total 1210 980 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Corn 35.0 49.3 39.4 1637.7 2217.0 1700

USDA: Farmland prices show first decline in two decades

BY DANIEL GRANT FarmWeek

Farm real estate values between Jan. 1, 2008, and Jan. 1, 2009, declined for the first time in more than 20 years, according to USDA. The Department of Agriculture’s agricultural land values and cash rents annual summary released this month showed national farm real estate values as of the first of this year averaged $2,100 per acre.

The total was down 3.2 percent from the previous year and marked the first decline in farm real estate values since 1987.

“Land values in 2009 are tied to the economy,” said Brad Schwab, state statistician with the National Agricultural Statistics Service’s Springfield office. “And the ag sector is starting to feel pressure from the recession.”

The annual report showed cropland values in the past year declined from a national average of $2,760 per acre to $2,650 per acre while the average cropland value in Illinois slipped from $4,850 per acre to $4,670 per acre (see graphic).

USDA noted factors that contributed to the downturn in the farm real estate market include the following: • The contraction in the overall economy has caused less commercial and residential development.

• Livestock and crop commodity prices have declined from the previous year and producers and investors therefore, are less optimistic.

• A decrease in the demand for recreational land contributed to the overall decrease in land values.

However, the downturn in the economy apparently

occurred after most farmers/landowners negotiated cash rents for this year, and thus cash rents for the year increased nationwide by 5.3 percent, USDA reported.

The average cash rent rate in Illinois has increased the past five years from $129 per acre in 2005, $132 per acre in 2006, $141 per acre in 2007, and $163 per acre in 2008 to $170 per acre in 2009, according to the USDA report.

“Cash rents still increased because farmers and landown-

ers in 2008 already established rates for the following year before the economy really turned sour,” Schwab said.

“Now, some farmers who are paying higher rates may be in somewhat of a bind.”

Members of the Illinois Society of Professional Farm Managers and Rural Appraisers recently predicted cash rental rates in Illinois for 2010, which will be negotiated this summer and fall, likely will decline by an average of 5 percent due to the economic downturn.

Wind goes out of Pickens’ plan for world’s biggest wind farm Texas oilman T. Boone Pickens is ending his plans to build the world’s largest wind farm in Texas, he announced recently.

Instead, Pickens said he is considering smaller wind energy projects in the Midwest and Canada.

Pickens had planned to build a 4,000-megawatt wind farm big enough to power 1.3 million homes. The projected total cost was $11 billion.

The businessman said his change in plans was influenced by the global credit crunch and low prices for natural gas, the fuel that competes with alternative energy in Texas.

Pickens ordered 667 wind turbines worth $2 billion for his massive project, which was scheduled to be finished in 2014.

Pickens said he plans to find other projects for the turbines.

FarmWeek Page 15 Monday, August 17, 2009

PROFITABILITY Corn Strategy

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

Crop report surprises Not only did USDA make merely a slight adjustment to acreage, it also surprised the trade with its initial yield expectations. The corn yield forecast was a little higher than expected while the soybean forecast was a little less than expected.

Mostly, though, everyone was surprised by the small acreage adjustments. Harvested corn acreage was reduced only 100,000 acres. The 220,000acre increase in harvested soybean acreage was less of a shock, but many were expecting it to be reduced slightly as well.

Primarily, USDA statisticians didn’t see much of a discernable shift in the data they received from producers in the states they re-surveyed. Satellite imagery didn’t indicate the planting mix had changed much because of the extreme delays in parts of the Midwest, either.

The 2.5 percent jump in the number of corn ears per acre was a little larger than anticipated. In recent years, plant population has been steadily moving higher. But, the 2.5 percent increase was more than normal, and is a big jump on the heels of a year that had increased 1.5 percent.

Relatively big increases tend to come on years when the prior year’s count is flat to down.

Basis charts

But one cannot discount a larger increase this year because of the relatively mild weather.

The ear counts in a typical year tend to decline modestly through the reports with late-season stress causing some not to develop.

However, on years with mild weather, ear counts hold up and sometimes even increase a little.

A bigger unknown at this time of year is the ear weight.

The initial forecast appears to be close to the five-year average and slightly above last year.

The key to the final weight lies with the weather ahead.

Across most of the Corn Belt, moisture is more than adequate to promote a good kernel fill.

What is unknown is when the growing season will end, a key ingredient with the lagging development of this crop. The first frosts last year were 2 to 3 weeks later than normal, allowing continued input of dry matter into the kernels. Can we count on the same this year?

USDA has an even larger challenge in forecasting soybean yields based on Aug. 1 data. About the only verifiable data involve the population.

Bloom counts continue to change and generally few, if any, pods are available.

USDA has had some success with using the node counts in projecting yield potential, but the correlation is not as strong with a later-developing crop.

While the 41.7-bushel yield i s b e l ow 2 0 0 5 ’s 4 3 - b u s h e l record, it is the highest ever forecast in an Aug. 1 report.

While cool summers tend to correlate well with good corn yields, even on late-planted crops, such is not the case with soybeans. We’ve identified three years in recent history that fit these parameters, and two of those ended with yields off trend.

The next report on Sept. 11 will offer a better insight, but it may be the Oct. 9 report before USDA has a reasonably good insight into yield potential. In addition, in the October report USDA could adjust acreage again depending on what the Farm Service Agency acreage data imply.

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Cents per bu.

✓2008 crop: If December futures would surpass $3.50 resistance, it could challenge $3.76 again, but we don’t think that’s likely. If you failed to make sales at the beginning of the month, use small rallies to make needed sales. It’s unlikely to pay to store old-crop commercially into next year, unless a frost/freeze cuts output significantly. ✓2009 crop: The market bounced off the recent low, but upside potential will be limited by the downward pull of the 20week cycle slated to bottom in early/middle September.

December futures should find psychological support at $3. Use rallies into the $3.40s on December to make needed harvest sales, but plan to hold inventories until after harvest, if possible. ❖Fundamentals: As anticipated, USDA’s August production forecast offered a bearish bias toward prices. The bigger surprise may have been the absence of any reduction in acreage in the wake of this year’s extreme planting delays.

Soybean Strategy ✓2008 crop: The premium old-crop prices have over newcrop still dictates liquidating any inventory you own. Short term, you can still hold out for a possible November futures move toward $11, but make sure those sales are complete if November closes below $10. ✓2009 crop: Continue to use rallies to $10.90 on November futures for needed harvest and/or catch-up sales.

However, if November were to close below $10, you should consider pricing any soybeans that need to be moved at harvest. In this volatile environment, check the Cash Strategist Hotline occasionally. ❖Fundamentals: The first official 2009 production estimate was a little less than expected, but it was not enough to have significant market implications. Weather remains a key feature for this crop, especially with the slow development pace. Chinese sales of government inventories continue to meet with lackluster interest. At the same time, our export sales remain strong,

including sales to China.

Wheat Strategy ✓2009 crop: Wheat prices fell to eight-month lows recently, with both the fundamental and technical structures remaining weak. The market is in the time window for the seasonal and 40-week cycles to bottom. We see limited downside risk below $5. Continue to hold off additional sales; better pricing opportunities should come this fall or winter. If your sales lag, use rallies near $5.50 on Chicago September to catch up.

❖Fundamentals: The recent USDA report confirmed there are ample domestic and world supplies. U.S. wheat production was pegged at 2.184 billion bushels, above trade expectations of 2.152 billion bushels. However, pockets of concern are popping up. Portions of Argentina’s wheat area, especially in the west, are dealing with droughty conditions.

Planting could be reduced as much as 40 percent to 6.8 million acres. And, this year’s output continues to slide in Russia and parts of Eastern Europe.

FarmWeek Page 16 Monday, August 17, 2009

PERSPECTIVES

Afghan people are trying to replace bullets with ballots We’ve just concluded America’s bloodiest month in Afghanistan since the war against the Taliban started eight years ago. Forty-two U.S. service members died in July. Casualties among allied forces and Afghan civilians have spiked as well.

This burst of violence has several sources. The most important may be an upcoming event: On Thursday (Aug. 20), for only the second time in its history, Afghanistan will hold a presidential election.

The Taliban objects to this democratic idea. Instead of offering a candidate for voters to accept or reject, it runs a REG CLAUSE campaign of guest columnist murder and mayhem.

The immediate goal is to make sure that the Taliban fails — and the election is a success. Over time, the hope is to bring peace and stability to a troubled nation.

That will require an ongoing commitment from the United States and NATO. It also demands a lot of creative thinking.

Thankfully, Democratic U.S. Rep. Chris Van Hollen of Maryland has put forward a modest proposal to increase the flow of trade. It would allow the Afghan people to do more to help themselves.

I’ve never traveled to Afghanistan, but I’ve worked from a distance on a project to build its agricultural infrastructure. I

have colleagues who have been there for extended stays and I leverage off their first-hand insights.

After more than a generation of constant warfare, the country has few of the basic resources that farmers in the developed world take for granted. The roads are not reliable. The lack of processing and warehousing equipment makes it almost impossible for growers to sell perishable goods to consumers who don’t live close by or to extend the marketing season.

It’s easy to imagine Afghanistan developing a vibrant trade in several commodities, such as pistachios. Right now, Iran is the world’s leading pistachio producer. Wouldn’t it be nice to see a democratic Afghanistan cut into the market share of the ayatollahs?

It can happen, but only if farmers in Afghanistan gain access to the proper cleaning, sorting, and packaging tools.

The same would be true for many types of fruit and citrus as well as other nut crops. The country is diverse in natural resources, but the market infrastructure is lacking.

If we don’t improve the ability of farmers in Afghanistan to move their products from field to market, they will continue to resort to what is already their region’s best cash crop: heroin poppies.

Moreover, many of them will remain in a state of economic desperation — the

very plight that Taliban recruiters have found so helpful to their foul cause.

The bottom line is that the people of Afghanistan, whether they work on farms or in factories, need more economic opportunities — and Americans can take small steps to help them.

Van Hollen’s proposed legislation, which has bipartisan support, would create “Reconstruction Opportunity Zones” in Afghanistan (as well as neighboring Pakistan). A limited number of textiles produced in these areas would enter the United States without having to pay tariffs for the next 15 years.

A similar effort in Jordan spurred a boom in light manufacturing. The theory is that these trade advantages would stimulate the Afghan economy and create the conditions for foreign investment.

Several strong and dedicated non-governmental organizations are working there now, but conditions must be improved to support sustainable investment and long-term commitments of expertise.

Unfortunately, Big Labor is flying its protectionist flag. Van Hollen has tried to appease the union bosses by demanding the opportunity zones meet certain labor standards.

This could become a fool’s errand: Enforcing labor standards in Afghanistan is like trying to grow a vegetable garden on the moon.

Republican U.S. Sen. Charles Grassley of Iowa has raised sensible questions about whether the bill’s restrictions go too far, and whether it will set a poor precedent for future agreements with other nations.

The good news is that Van Hollen and Grassley agree on the principle that trade is better than aid — and that export opportunities hold great promise for ordinary workers in Afghanistan. If they can work out their differences, they may deliver a small boost to a distressed nation in a challenging period of transition.

Americans would benefit as well. On the national-security front, a more prosperous Afghanistan makes for a safer world. In addition, a growing economy requires goods and services of the type that Americans routinely make and sell abroad.

The project I worked on included bids and spec sheets from U.S. equipment manufacturers to compete for substantial business. Over time, opportunity zones could give birth to two-way trade.

The people of Afghanistan are trying to replace bullets with ballots. In Congress, our lawmakers should support them — and vote for trade.

Reg Clause raises cattle, corn, and soybeans on a fourth-generation family farm in central Iowa.

He is a Truth About Trade and Technology board member. He can be reached at {www.truthabouttrrade.org.}.

Futurists remain unafraid of challenges for the global future “Be afraid, be very afraid,” was what some were saying about the economy earlier in the year. The fear factor is a little less now, but the deep recession, job losses, H1N1 pandemic, climate change, STEWART and global terTRUELSEN rorism still set off alarms in the news and raise our anxiety levels.

“The future has probably never seemed more uncertain,” said John Challenger, a leading expert on labor and employment, in addressing World Future 2009, an annual confer-

ence of futurists held in Chicago.

One would expect a lot of dire warnings to come out of the meeting, but that was not the case with the World Future Society, an educational and scientific organization that looks at the trends shaping the future.

Challenger expected job growth in health care, energy, and global businesses. In 20 years, he said, the corporate headquarters will be extinct and people will carry their offices on their backs, a mobile workforce.

Economic futurist Joan Foltz

also was optimistic about a post-recession world. “The long-term trend is intact for the globalization of capitalism, and that is bringing new areas of the world into development and the rise of the global middle class,” she said.

Foltz cited Africa as an emerging region with much potential to fuel the growth of companies that participate there.

British futurist Ian Pearson predicted that 20 years from now wristwatches will be smarter than we are. Even more

startling was his confidence in forecasting that crude oil will sell for no more than $30 a barrel in the year 2030.

We might as well leave it in the ground, he said, because oil will largely be replaced by solar energy which will come down exponentially in price until it costs almost nothing.

Pearson also was optimistic that farmers can meet the demand for affordable food, which will have a longer shelflife.

The last thing Pearson and other futurists desire is a return

to the past in the name of sustainability or out of fear of the future.

They have no desire to go backward in time. Instead, they see new inventions and innovations and changes in people’s values, attitudes, and beliefs that can lead to a better world.

Stewart Truelsen is a regular contributor to the Focus on Agriculture series and author of “Forward Farm Bureau,” which marks the American Farm Bureau Federation’s 90th anniversary. His e-mail address is stut@fb.org.

Letter to the editor IFB NAIS position is the proper one Editor: The National Animal Identification System (NAIS) has not been well received by all livestock owners — only 35 percent of total livestock premises are registered.

Thousands of small operations that house a few chickens, goats, sheep, etc. have not registered their premises, nor is it likely they ever will.

Advocates of NAIS cite this as a reason for mandatory registration, although the program was originally described as voluntary until more widely accepted.

We feel Illinois Farm Bureau’s policy of voluntary

participation is the proper one, and is in keeping with a longstanding tradition of opposing regulatory mandates that hamper the livestock industry.

There is no evidence that NAIS would stop or slow a disease outbreak any faster than the less intrusive system currently in place.

There is no evidence that a NAIS registry would protect the value of livestock for export, before or during a domestic disease outbreak, although both these ideas are given as reasons to support NAIS. There is no evidence that NAIS is necessary. Why attempt to fix something that obviously isn’t broken?

We support a voluntary

program because we do not support the phases of NAIS. 1) Premise registration. 2) Individual identification of each animal. 3) Reporting of events of each animal, such as transportation to another location. We are mostly troubled by 3 since it imposes unwanted reporting obligations. Advocates of NAIS are keeping mum about 3, and would rather work on 1, for now.

We support a voluntary program because producers should have the option of withdrawal — if information in the database was accessed by animal activists, for instance.

We believe that USDA could better protect the

nation’s livestock industry, food supply, and consumers by focusing its efforts on areas where problems are known to exist, rather than creating new

ones for livestock producers.

ROD MCGAUGHEY, Carthage Hancock County Farm Bureau president

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