August 31, 2009, farmweek

THE IDEA THAT FARMERS are going to make money by trading carbon credits is far from certain, said a former ag secretary. ..4

THE PORK INDUSTRY is experiencing extremely hard times with little relief in sight. See how two producers are coping. ..............5

DESPITE THE DOWNTURN in the economy, GROWMARK expected to post its fourth-highest income in history for the year. ...........13

Monday, August 31, 2009

Two sections Volume 37, No. 35

Input costs for 2010 crops projected to decline

BY DANIEL GRANT FarmWeek

Input costs for the 2010 crops are projected to retreat back to levels farmers paid in 2005-06, according to Gary Schnitkey, University of Illinois Extension farm management specialist.

Schnitkey last week reported some preliminary cost estimates at the Illinois Wheat Forum in Highland. Wheat growers in the next six to eight weeks are expected to begin seeding their winter crop.

“We’re projecting non-land costs (for next year’s crops) to go down,” Schnitkey said.

“The primary driver is lower fertilizer prices.”

Non-land costs for wheat

production from 2005 to 2009 increased by a total of about $170 per acre. About 60 percent of the cost increase was due to fertilizer costs, according to the farm management specialist.

However, wholesale prices for anhydrous ammonia, which peaked last year above $1,000 per ton, have declined since then and last week were in a range of $305 to $325 per ton, he reported.

Meanwhile, the average commercial price for natural gas as of June was $9.24 per thousand cubic feet compared to the peak in July 2008 of $15.24, according to the Energy Information Administration.

And oil prices in the coming year were projected to remain below $100 per barrel (at an average of $70 to $80 per barrel) after peaking last

a range of $250 to $260 for the 2010 crop.

Non-land cost projections this year for corn ($490 per acre) and soybeans ($250 per

‘The primary driver is lower fertilizer prices.’

— Gary Schnitkey University of Illinois

summer at $147 per barrel.

Schnitkey, therefore, projected non-land costs for wheat production could decline from as much as $330 per acre for this year’s crop to

acre) were forecast to decline next year to $410 and $230 per acre, respectively.

“We see costs moderating for 2010,” Schnitkey said. “But (the projections) are still at

very high levels and they’re highly related to what happens to energy prices.”

But not all input costs are expected to decline next year.

Schnitkey projected an increase in seed prices and cash rents to hover around current levels.

“Seed costs I expect will be going up, especially for corn,” Schnitkey said.

Meanwhile, “economics suggest rents (for 2010) should come down,” he continued. “But that doesn’t happen very often, so we’re projecting stable rents.”

The U of I input cost projections should be available this week online at {www.farmdoc.uiuc.edu}.

Time strikes again in frontal ag attack

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

“Somewhere in Iowa, a pig is being raised in a confined pen, packed in so tightly with other swine that their curly tails have been chopped off so they won’t bite one another. To prevent him from getting sick in such close quarters, he is dosed with antibiotics. The waste produced by the pig and his thousands of

pen mates on the factor y farm where they live goes into manure lagoons that blanket neighboring communities with air pollution and a stomach-churning stench.”

So begins the cover story of a Time magazine issue that hit the mail last week.

Roughly a year after its highly contested cover story lambasting corn-based ethanol, Time has launched a frontal attack on “modern agriculture.”

According to National Corn Growers Association CEO Rick Tolman the magazine is perpetuating misconceptions about “family” and “corporate” farming.

In the introduction to its Aug. 31 cover piece, “The Real Cost of Cheap Food,” the newsmagazine lists animal abuse, overuse of livestock antibiotics and crop fertilizers, air-polluting animal wastes from “factory farms,” fish-

killing ag runoff, and a domestic obesity “epidemic” as factors in “the state of your bacon — circa 2009.”

Illinois Farm Bureau Presi-

dent Philip Nelson said he was “outraged by these types of antics to disparage production agriculture with no documentation or supporting facts.”

The article, available at {www.time.com/time/magazi ne}, applauds organic producSee Time, page 2

BIG BUD

Linda Springer, left, shoots a picture of her husband, Bob, in front of Big Bud, a feature at this year’s Half Century of Progress show that ended Sunday at Rantoul. Big Bud, transported from Montana for the show, has a 760 horsepower, 16-cylinder Detroit Diesel engine. The tractor measures 27 feet long and 20 feet wide and stands 14 feet tall with tires that are 8 feet in diameter. It was the first time the tractor was to demonstrate its power in the Midwest, but rain Friday delayed the demonstration. It did not, however, quell the crowds. The Springers, from Pearl in Pike County, have a cash grain and hog operation. Springer also restores tractors. (Photo by Ken Kashian)

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, August 31, 2009

Quick Takes DUQUOIN STATE FAIR IN GEAR — The DuQuoin State Fair is offering fairgoers free entertainment along with other fair attractions through Sept. 7. Exhibits at the fair Ag Expo will be open daily from noon until 8 p.m.

For the first time, Gov. Pat Quinn welcomed fair visitors with an open house at the Hayes House last Saturday afternoon.

In addition to some free g randstand shows, the fair also is offering a free demolition derby. The World Trotting Derby will be Saturday with a noon post time.

BACON NEW FOOD INGREDIENT — The pork industry may take heart in a new cured-pork mania up north — Canadians are slipping bacon into everything from desserts to liquor. Recently, a Canadian ice cream company took honors for its maple bacon crunch.

Bacon-influenced foods include cupcakes, brownies, cookies, and cinnamon rolls.

Chocolate-coated bacon also has tempted visitors to some American state fairs.

Non-food companies are tapping into the bacon craze by adding bacon flavoring to all sorts of products. These include bacon-flavored lip gloss, dental floss, and gumballs.

N O D I F F E R E N C E — Re s e a r ch e r s from Kansas State University released findings stating organic and naturally raised beef are no different than conventionally raised cattle in reference to E. coli susceptibility, according toScienceDaily.com.

Findings in the journal Applied and Environmental Microbiology showed a 14.8 percent prevalence rate of O157:H7 E. coli in organically raised and 14.2 percent in naturally raised cattle. These levels are even with rates found in conventionally raised cattle.

The increased demand for natural and organic products has forced cattle producers to change the way they operate. Many of the changes have increased production costs.

(ISSN0197-6680) Vol. 37 No. 35

August 31, 2009

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

FarmWeek is produced by the Illinois Farm Bureau.

FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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

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

GOVERNMENT

‘Flawed’ RFS rules threaten soy market The American Soybean Association (ASA) biodiesel co-product that could offset soy is encouraging all soybean producers and their biodiesel’s carbon “footprint.” “family members, neighbors and friends” to “The EPA’s proposed rule on RFS implespeak out about “flawed and immature mentation is significantly flawed and would assumptions” about the impact biodiesel do unnecessary harm to the competitive posiwould have on global agriculture and greention of the U.S. soy biodiesel industry,” ASA house gas emissions.

President Johnny Dodson warned.

ASA last week issued a national “Call-to“A loss of the domestic biodiesel market Action” seeking producer would significantly decrease comments on U.S. Environprices paid to U.S. farmers for mental Protection Agency soybeans.

‘The EPA’s proposed their (EPA) rules on the implemen“Soybean farmers would rule on RFS imple- lose a source of demand for tation of the expanded renewable fuels standard mentation is signifi- soybean oil, biodiesel manu(RFS). would be left without c a n t l y f l a w e d a n d facturers While the RFS is expected sufficient feedstock supply, would do unneces- jobs would be lost, and our to expand both ethanol and biodiesel use nationwide nation would not decrease its sary harm.’ through 2022, ag groups dependence on imported oil.“ including Illinois Farm Also at issue is EPA — Johnny Dodson analysis comparing estimatBureau, ASA, and the NationPresident, al Corn Growers Association ed direct and indirect American Soybean Association fear corn- and soy-based biobiodiesel emissions with fuels could be penalized direct emissions only for through “indirect land use change” considerapetroleum. That analysis will determine tions. whether biodiesel offers significant enough ASA questioned the satellite imagery and emissions reductions relative to conventional models used to measure theoretical cropping diesel to warrant RFS inclusion. changes and loss of environmentally sensiAn online form at tive lands related to U.S. soy biodiesel pro{www.soygrowers.com/policy/RFS2.htm} duction. allows people to read ASA’s letter to EPA, Soybean growers challenged an “unneces- add personal information, and submit added sary and onerous” biodiesel feedstock certicomments. The site includes links to further fication proposal, a “major error” in calcuinformation on RFS proposals. lating direct nitrogen emissions in soybean Deadline for RFS comments is Sept. 25. production, and a lack of consideration for More on land use concerns will be available in the industrial chemical glycerine as a the Sept. 7 issue of FarmWeek.

Time Continued from page 1 Time’s story “reinforces why we need to be ers and marketers while placing obesity condiligent in telling our story to the public,” said cerns at the door of a fast-food, meat-intensive IFB’s Nelson, who urged members to “express culture fostered by “vast, monocrop fields in our displeasure” at Time’s website. Tolman said Midwestern states.” education is crucial to eliminating “demonizaThe magazine reports corn — tion” of individual foods such as “king on the American farm” — red meat or corn sweeteners — FarmWeekNow.com has received more than $50 bilboth cited by Time. lion in federal subsidies over the For information on the Time Westhoff emphasizes the article attacking agriculture, growing diversity of U.S. agriculpast decade, though price-trigvisit FarmWeekNow.com. gered payments have dropped ture, in terms of both scale and sharply with the onset of major market focus. Many smaller proethanol markets. ducers today target niche markets “It’s ridiculous that a credible magazine like “for a very specific audience” — frequently, that makes this a cover story without checking affluent consumers — while larger farms supply its facts,” Tolman told FarmWeek at a St. Louis mass consumer markets, he said. climate conference highlighting environmental The Time article sidesteps the largely family advances by farmers and biofuels producers. makeup of America’s “corporate” farms, Food and Agricultural Policy Research Insti- instead painting commercial grain production as tute (FAPRI) economist Pat Westhoff agrees a “faceless, uncaring entity,” Tolman said. More the article does not provide “all the facts we than 95 percent of U.S. corn is produced by need to have a well-informed debate.” He noted family farms, many incorporated for legal or tax “we’ve made a lot of changes in how we proreasons, he said. duce food in this country over the last 10, 20, Further, farm scale does not always correlate 30, 50 years that are definitely not recognized in with pollution or stewardship. Larger producers the article.” are subject to environmental regulations from Tolman upheld the value of “local” foods which small farms may be exempt, Westhoff for consumers “who can afford them,” but stressed. warned “we will not feed the world that way.”

Some environmental protections require “sig“Rising demand around the world does need to nificant outlays of money smaller producers be satisfied in some way,” Westhoff maintained. don’t have at their disposal,” he told FarmWeek.

“We want to do that in a way that’s most consistent “There are times when the environmental with our environmental objectives, as well — I consequences of large-scale production may be think everyone would endorse that. The question no different or, in some cases, even better than is, what is the best way to proceed from here?” in smaller-scale production,” he said.

FarmWeek Page 3 Monday, August 31, 2009

GOVERNMENT

Johanns: ‘Great ideas’ obscured by mega-health plan

BY MARTIN ROSS FarmWeek

A former ag secretary sees “a lot of great ideas” for treating America’s health woes, and one really bad one.

In an RFD Radio/FarmWeek interview last week, U.S. Sen. Mike Johanns (RNeb.) argued House Resolution 3200 — which proposes a broad new “public option” for the underor uninsured and mandatory employerprovided health coverMike Johanns age — is not a “workable approach.”

While August “town hall” meetings have underlined sharp differences over how domestic health issues should be addressed, Johanns maintained Americans are “overwhelmingly opposed to a government-run health care system.”

Illinois Farm Bureau has asked the American Farm Bureau Federation (AFBF) to lobby against HR 3200 based on Farm Bureau policy opposing compulsory health insurance.

Further, Johanns cites a Congressional Budget Office (CBO) analysis that indicates proposed comprehensive reforms will not reduce U.S. consumer health care costs. The estimated $1.2 trillion to $1.6 trillion price tag of administration-backed measures alone defies “good common sense,” the former ag chief said.

“If you’re raising the price tag over $1 trillion, how’s that going to cut costs?” Johanns posed. “The evidence is clear that it won’t. And there’s the problem. The (CBO) says the Obama bill just simply won’t bring down the cost of health care. The policy just simply doesn’t work, and that’s why you’re getting such anger and controversy.

“There’s a better way to approach (costs) — there are a lot of great ideas out there.

“What if you could buy health insurance across state lines, farmers could pull together through (ag groups), and all of a sudden, instead of just trying to insure your family, you’re part of a risk pool in the Midwest or even nationwide? I think you’d start to bring those costs down, and you’d give farmers bet-

ter options.”

According to a recent report by the independent Lewin Group, nearly 65 percent of the 1.1 million Nebraskans who currently have private insurance would be transitioned onto a government-run program under HR 3200.

The study also estimates 31 percent of Nebraskans currently without health insurance would remain uninsured.

Further, net annual income for Nebraska’s hospitals would fall by nearly $753.6 million under the House plan, the analysis warned. Nebraska physicians could see their net annual income decline by an average $44,953.

Instead, AFBF recommends Congress offer tax credits to help the selfemployed purchase health insurance and help farm employers afford insurance for their workers and grant farmers a special exemption from mandatory coverage for seasonal and temporary workers.

The administrative and financial burden of providing a health care program for these workers would be overwhelming, AFBF said.

AFBF agreed market-based

reforms such as a House-proposed National Health Insurance Exchange — which would offer consumers the ability to comparison-shop a variety of health plans — would “expand competition and choice” and reduce the private health care costs. However, a public option “is not needed to increase competition,” the organization stated.

Johanns feels malpractice reform would “help build the relationship between the doctor and the patient.”

While a patchwork of regional medical liability laws has resulted in Illinois and other states scrambling to retain physicians, limits on some malpractice awards would free doctors to offer individuals a range of medical options, he suggested.

He also favors college loan forgiveness and other incentives to recruit and retain rural health providers.

“It is so tough to get doctors to come out (to rural communities),” Johanns told FarmWeek. “It’s very tough to get them involved in a family practice — it just simply does not pay at the level a specialty would.”

Quinn appoints two, plans to name five more to U of I trustee board Governor wants to rectify harm

BY KAY SHIPMAN FarmWeek

The struggling governing board of the University of Illinois has two new appointees and five more will be named soon, Gov. Pat Quinn said last week.

Quinn appointed Christopher Kennedy, president of the Merchandise Mart and son of the late Sen. Robert Kennedy, and Lawrence Oliver, an attorney with the Boeing Co., to six-year terms on the U of I board of trustees.

“The first order of business for the trustees will be to roll up our sleeves and make sure

we straighten out what went wrong,” Quinn said during a news conference. The governor serves on the trustee board, and Quinn said he plans to attend its Sept. 10 meeting and name the remaining trustees prior to that meeting.

The U of I board of trustees and the university have been involved in an admissions scandal and the focus of a panel appointed by the governor to investigate the matter and make recommendations.

“This is the worst university scandal we’ve ever had in Illinois,” Quinn said. The governor said he wants to review “what went wrong on admis-

sions” and those “who work for the university in high and sensitive places.”

Kennedy will replace Niranjan Shah, the former board chairman, and Oliver will replace Lawrence Eppley. Both men voluntarily resigned along with five others. Two remaining trustees refused to resign and threatened legal action if they were fired, Quinn noted.

Quinn announced he won’t fire the two remaining trustees, James Montgomery and Frances Carroll, because he said the state and taxpayers would be drawn into a long, costly legal battle. “The legal fight would become the

main show ... not fixing the problem,” he said.

Quinn provided no information about who else he plans to appoint, but said he had received many names from sources and is working with the U of I Alumni

Association.

Thirteen members, including the governor, serve on the board; however, only 11 are voting members. Three student trustees, one from each campus, serve on the board, but only one may vote.

Quinn signs bill for transportation hub Gov. Pat Quinn signed legislation last week to encourage business development along the freight rail systems in Illinois.

CenterPoint Properties will build, own, and operate a new rail transportation hub in Joliet. Under the bill, state income taxes attributed to the estimated 7,000 jobs created at the facility will be put in an Intermodal Facilities Promotion Fund.

The Department of Commerce and Economic Opportunity (DCEO) will administer the fund to reimburse CenterPoint for infrastructure improvements. DCEO will award an annual grant of up to $3 million from fiscal years 2010 through 2016.

Intermodal rail facilities have an important role in growing the state economy and maintaining exports, Quinn said.

Beginning farmer training offered State announces guidelines for energy grants The University of Illinois Extension and the Land Connection are offering training to new farmers through the Central Illinois Farm Beginnings (CIFB) program that starts Oct. 10.

The registration deadline is FarmWeekNow.com Sept. 14.

Learn more about Central The farmer-led training and Illinois Beginnings by visitsupport program helps new ing FarmWeekNow.com. farmers plan and launch farm businesses that are economically and environmentally sustainable.

The program consists of three components: business planning seminars, on-farm field days, and season-long mentorships. The 2009-2010 program will start with a business planning seminar.

The fall-winter seminar series will be in Decatur, while spring-summer field days and mentorships will occur throughout Central Illinois.

For more information or to connect with CIFB graduate farmers, contact Colleen at the Land Connection 847-570-0701 or colleen@thelandconnection.org.

Additional information and application materials can be found online at {www.centralillinoisfarmbeginnings.org}.

The Illinois Department of Commerce and Economic Opportunity (DCEO) is accepting applications for state energy grants. Recently, Gov. Pat Quinn announced the U.S. Department of Energy approved the state’s energy plan, which will make more than $100 million in federal stimulus funds available for grants.

The additional federal funds will allow DCEO to develop new programs and expand existing ones. Applications are due in October, some as early as Oct. 1.

Organizations may apply in the following areas: • Renewable energy production for development and implementation of large biomass/biogas to energy, solar

photovoltaic, hydroelectric, and other renewable energy technology.

• Community renewable energy for smaller-scale solar, wind, and other renewal energy projects.

• Green industry business for development or expansion of dedicated biomass crops, renewable energy and energy efficiency component manufacturers, and manufacture of recycled content products, among others.

• Next-generation biofuels production incentives for technologies that will reduce production costs by increasing production efficiency and reduce potentially harmful greenhouse gas emissions.

• Green roof grants for

development of cost-effective green roof projects that increase energy efficiency, clean and retain rainwater, and reduce urban heat effects.

• Public facility electric energy efficiency for incentives to increase the energy efficiency of public sector entities outside of the Ameren Illinois and ComEd service territories.

• Public sector thermal efficiency for projects that produce thermal energy savings through improved efficiency in buildings, equipment, or processes.

For more information about the programs and applications, go online to {www.illinoisenergy.org} and click on the “Recently Updated” section.

Then click on the state energy program section.

FarmWeek Page 4 Monday, August 31, 2009

CLIMATE

Johanns: Ag climate offsets ‘very uncertain’

BY MARTIN ROSS FarmWeek

The iffy proposition of lucrative carbon “credits” for farmers is unlikely to square with “the certainty of higher input costs” under current climate legislation, according to former Ag Secretary Mike Johanns, now an outspoken Senate opponent of “cap-and-trade” proposals.

Under U.S. House proposals to cap greenhouse gas (GHG) emissions from utilities and energy-intensive industries, “you’ll pay more for fertilizer and diesel fuel and electricity to run your irrigation pump,” Senator Johanns (R-Neb.) warned in an RFD/FarmWeek interview.

At the same time, producers and foresters who can reduce GHGs or trap or “sequester” carbon dioxide in the soil purportedly would be given the opportunity to market emissions “offsets” to regulated sectors.

“I think the benefits are very, very uncertain,” Johanns said. “I think this idea that farmers are going to make money by trading credits is a very uncertain promise.”

Standing in sharp contrast

is Texas A&M University economist Bruce McCarl, who helped shape current climate direction as part of a global Intergovernmental Panel on Climate Change.

McCarl touts “the money the agricultural sector can make” under climate proposals, comparing offset income prospects with the corn price boost that accompanied the recent “ethanol boom.”

Experts at a National Corn Growers Association (NCGA) climate conference last week agreed forest expansion offers the greatest offset income potential. By moving cropland and pasture land into trees, McCarl sees corn and beef supplies becoming tighter and prices rising significantly.

“We factor in the benefits ag might get from selling hog manure, payments from afforestation, etc., and we see substantial benefits due to higher prices and offset-selling possibilities compared with the current situation,” he said.

Offset truths and consequences Offset potential and uncertainty have divided ag groups.

Climate rally features food, music, ‘common concerns’ If free lunch and country music aren’t enough, David Sykuta urges Illinoisans to come to Springfield Tuesday for a dose of policy reality.

Springfield’s Crowne Plaza Hotel is the site for an 11:30 a.m. Tuesday rally to address concerns about the impact of proposed greenhouse gas emissions caps on future energy, consumer, and farm costs.

In addition to testimonials from farmers and others potentially affected by U.S. House cap-and-trade proposals, visitors will be able to electronically communicate concerns to Washington lawmakers. The event will feature a video by country star Trace Adkins addressing policy concerns.

Lunch will follow the rally, one of 22 nationwide sponsored by the broad-based group Energy Citizens.

Illinois is the fourth largest refining state, and “if there’s something that’s going to affect oil refineries, it’s going to affect us here,” Sykuta, executive director of the Illinois Petroleum Council, told FarmWeek.

The potentially rippling and overlapping impacts of cap-andtrade proposals have brought ag, energy, industrial, and transportation groups together to share their “common concerns,” he said.

“We think the legislation, if not fixed, will cause a massive explosion in fuel prices, particularly for gasoline and diesel,” he said. “Four-dollar-a-gallon gas would become the new ‘normal,’ and diesel would be right up there with it. That’s nothing to do with market forces. It’s just a tax.

“Almost everything anyone in Illinois buys is delivered in a truck, and if truckers’ costs explode, the truckers’ tax increases are going to be reflected on the farmer’s invoice, and that’s going to be a pretty major effect.”

In a report released last week, industry consultant EnSys Energy warned House greenhouse emissions caps could reduce U.S. refining output, increasing reliance on imports of both crude oil and even refined products such as gasoline or diesel currently produced in the U.S. At the same time, Energy Citizens estimates the plan would cost 2 million jobs nationwide. According to Sykuta, most of those jobs would be “the higher-paying industrial-energy sector jobs we think Illinois needs to hold onto.” — Martin Ross

Farm Bureau firmly opposes the House plan, while the American Soybean Association endorses House Ag Committee compromise provisions that would grant USDA authority to identify farm practices that would qualify as ag offsets.

NCGA moved from opposing the House cap-and-trade bill to a neutral stance with inclusion of the compromise.

NCGA hopes to release an Informa study weighing ag costs and offset opportunities by mid-September.

The Corn Belt is ahead of the curve in mitigating GHGs through reduced tillage, precision fertilizer, and other practices, and that could pose a challenge for farmers hoping to profit from cap-and-trade.

Johanns believes questions about whether such “past good practices” will qualify for offsets will be a “point of contention” in the Senate.

American Farm Bureau Federation senior economist Bob Young fears failure to credit existing efforts could result in unintended environ-

mental consequences.

For example, he sees use of corn stover as an alternative energy source providing offset opportunities, but if offset values are perceived to outweigh the benefits of tillage reduction, growers could be tempted to harvest residues vital to soil integrity and nutrient/carbon storage.

Offset supply and demand Given “free” greenhouse emissions allowances the House proposes to allocate to various sectors in exchange for their support of the plan, Johanns questions how a demand-driven ag credit market could “get up-and-running” in the first place. In addition, the House calls for a major share of offsets to come from foreign sources.

A U.S. Environmental Protection Agency analysis indicates an initial billion tons of carbon offsets would be available outside the U.S. in 2012.

At a projected $18-$20 per ton carbon price, Young warned House proposals would immediately be “sending $20 billion overseas,” in addition to billions in House-proposed subsidies for global forestation efforts.

That said, some U.S. producers could realize significant offset income. However, not all growers have the capital or the geographical logistics

needed to capture higher offset profits through wind energy, biomass resources, forest development, or methane digesters.

Northern Illinois dairyman Doug Block and his brother, Tom, produce nearly twice the electricity their operation requires through methane digestion, and he expects to see “some advantage” under cap-and-trade.

Block sees an “absolute benefit to those of us in agriculture who can develop carbon credits,” but remains concerned energy/input costs will “more than offset the value of those carbon credits.”

“It takes a minimum of about 500 cows to justify the capital expense to put one of these (digesters) in,” estimated Block, who oversees an 800cow herd. “It takes too many animals for the average dairy farm in Illinois to justify a methane digester.

“Our system cost about $960,000, but we would not have been able to put it in without a federal energy grant for a fourth of the cost and an Illinois Department of Commerce and Economic Opportunity grant that paid for another fourth. The capital cost for my brother and I was still about $500,000, which we’re capitalizing over the course of about 10 years.”

DDGs potentially rich in ‘credits’ What’s good for the feedlot turns out to be better for the climate, according to a University of Nebraska livestock feed researcher.

DDGs (distillers dried grains) could prove a boon to ethanol producers grappling with “carbon footprint” issues and possible greenhouse gas regulations, Nebraska’s Virgil Bremer suggested.

As the U.S. Environmental Protection Agency analyzes the farm-to-highway footprint of cornbased ethanol — key to future plants meeting federal renewable fuels requirements — the biofuels industry is eyeing practices, technologies, and new energy sources that can reduce emissions related to corn and ethanol production.

Experts at a National Corn Growers Association climate conference touted potential for “co-product credits” — factoring feed grain/soybean replacements such as DDGs into emissions calculations to generate a more positive ethanol footprint.

That could help biofuels producers avoid having to buy emissions credits under a “capand-trade” system or even offer emissions offset opportunities for livestock producers.

Further, use of “wet” DDGs, which are not dried for shipment or storage, offers the optimal greenhouse impact as well as prime benefits at least for the cattle feedlot, based on 19902005 feed trials, Bremer said.

“With wet distillers grains, cattle gain quicker than when they’re fed dried distillers grains,” he told FarmWeek. “The benefit then goes to the ethanol plant in using less natural gas to extract that water from the product.

“The co-product offsets for the whole (production) system — it does not necessarily get attributed solely to the ethanol plant. When you put the box around the corn production and the ethanol plant and the livestock, the credit goes to the whole system.”

Wet DDGs generally are fed within a plant’s immediate area, but proximity of beef/dairy operations to ethanol production offers a particular advantage for the Midwest, Bremer suggest-

‘When you put the box around the corn production and the ethanol plant and the livestock, the credit goes to the whole system.’

— Virgil Bremer University of Nebraska

ed. Wet DDGs thus can reduce emissions attributed to trucking dry co-product cross-country.

Michael Wang, energy analyst with Argonne National Laboratory, sees DDG corn replacement as having a role in addressing global “indirect land use” concerns.

A growing world middle class is fueling demand for homegrown animal protein, and that may “pose an opportunity for DDGs as a significant animal feed,” vs. land conversion for feed grains, he said. — Martin Ross

FarmWeek Page 5 Monday, August 31, 2009

LIVESTOCK

Pork producers struggle to survive economic woes Crisis worse than ’98 for some farmers

BY DANIEL GRANT FarmWeek

Pork producers likely will never forget the market collapse of 1998 when hog prices in December of that year plummeted to just 8 cents per pound.

But, as hard as that was for producers to swallow, the current down-cycle in the pork industry has been even worse for many due to the length and severity of the ongoing crisis.

Hog prices have been below break-even for 20 of the past 22 months, according to Iowa State University estimates, and there doesn’t appear to be any relief in sight.

Losses since September 2007 averaged $21.37 for every market hog sold and could dip this fall to a staggering $54 per head, according to Don Butler, president of the National Pork Producers Association.

“This last stretch has been even a little tougher than ’98.

This time it’s lasted so much longer,” said Mike Haag, who along with Jeff Stark co-manages a 1,200-sow, farrow-to-

finish operation in Livingston County owned by Mike’s father, Dewaine Haag. “If it doesn’t change in the next nine to 12 months, I may no longer be in the pork industry.”

The downward spiral for pork producers began nearly two years ago when high grain and energy prices pushed input costs to historic heights.

The situation worsened last year due to the global economic recession and then was exacerbated this spring when confusion about the H1N1 flu, which initially was mislabeled “swine flu,” further reduced demand for pork worldwide.

“Probably the final straw for a lot of producers has been the H1N1 fiasco,” Haag said. “It was absolutely devastating to domestic demand and exports even though it (H1N1 flu) has nothing to do with eating pork.”

The amount of additional revenue lost by the pork industry from April 24, when H1N1 first made international headlines, to the end of the year could surpass $1.2 billion, according to Butler.

“The catalyst of the huge losses producers faced really was

Mike Haag co-manages a 1,200 sow farrow-to-finish operation in Livingston County. He said the pork industry has strived to become more efficient the past 15 years so there aren’t many options left for producers to cut costs on a long-term basis. If economic conditions don’t improve, Haag said he could be out of the pork business within the next year.

Brent Scholl, who finishes 7,000 pigs per year on his farm in Lee County, has been raising hogs since 1981. Two years ago, he joined a sow cooperative and switched to a wean-to-finish operation as a way to expand without having to construct more buildings. (Photos by Ken Kashian)

increased production costs,” said Steve Meyer, president of Paragon Economics. “But that (H1N1) was the triggering mechanism that drove prices lower.”

Brent Scholl, whose weanto-finish operation in Lee County finishes about 7,000 pigs per year, said the cash flow on his farm has been hurt in recent years despite the fact he grows enough corn to feed his pigs, which in turn produce enough manure to fertilize the majority of the crop acres on his farm.

“Three or four years ago we made good profits, but we’re going to give that all back,” said Scholl, who also raises cattle and sheep. “The longer this (down-cycle) goes on, the tougher it gets.”

Meyer reported some lenders are in the process of getting some hog producers out of the business and/or preserving any equity they have left. Iowa State estimated a farmer who markets 1,000 hogs per month since October 2007 would have depleted more than a $500,000 in net worth.

Scholl and Haag said pork producers have done what they can to trim costs, such as reduce employee hours, eliminate capital purchases, and/or change feed rations. But they may be victims of their own success.

The number of pigs saved per litter from March through May in the U.S. was a recordhigh 9.61, which was up from 9.38 the previous year, USDA reported.

“We got rid of some sows last year, but I think we raised more pigs this year,” Haag said.

Scholl said his sow cooperative plans to eliminate 5 percent of sows. But productivity gains and vertical integration of the industry make it tougher to lower production enough nationwide to initiate a quick return to profitability.

“The industry has changed” in the past 25 years, Scholl said. “There are fewer people getting in and out. I think that’s part of the reason why the cycles last longer.”

Illinois prior to the price collapse of 1998 had about 7,000 hog farms, according to Brad Schwab, state statistician with the National Agricultural Statistics Service. But that count, as of 2007, was down to 2,800 farms, although production declined only slightly from 4.7 million head in 1998 to 4.2 million head in 2007.

“There hasn’t been a big change in the total number (of hogs in the state),” Schwab said. “It’s just that fewer producers are raising them.”

Farm groups, such as the Illinois Farm Bureau and Illinois Pork Producers Association (IPPA), have rallied to

keep the remaining pork producers in business by requesting USDA do everything from purchase more pork for feeding programs to negotiate with other countries for improved market access.

“We want to see profitability back in the pork industry as soon as possible,” said Scholl,

who is president-elect of IPPA. In the meantime, pork is economically priced at meat counters around the country, Scholl added. However, retail prices for meat likely will increase down the road as the livestock industry is in the midst of reducing production, Meyer said.

Three more quarters of losses expected in pork industry The current economic crisis in the pork industry already has surpassed that experienced by pork producers in 1998-99.

And there’s still about three more quarters of losses to go before pork producers finally may see a profit again, according to Chris Hurt, economist at Purdue University.

Losses for the past seven quarters for an average operation that produces 10,000 head per year currently total about $315,000, Hurt calculated.

“By comparison in the 1998-99 disaster, a 10,000 head-peryear producer would have lost $213,000 in the seven quarters of loss beginning with the first quarter of 1998,” he said.

Hurt projected three more quarters of the current disaster will push producer losses to $396,000 through the first quarter of 2010.

FarmWeek Page 6 Monday, August 31, 2009

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Rain dominated everything here last week with 3.5 inches at our farm since Tuesday night, and as much as 6.3 inches southwest of Seward in the last two and one half days.

Luckily, we have not had any bad storms to go with the rain, but it is still way too much rain. White mold is still spreading in the beans, and we need some warm, dry, sunny days.

Several farmers are trying to finish the last cutting of hay, but that’s pretty tough with all this rain.

Pete Tekampe, Grayslake, Lake County: Another cool, wet week in Lake County. We received more than 3.5 inches of rain since Wednesday and it was still raining Friday morning. Corn is showing stress from too much rain and not enough sun or heat.

Beans look great, but are four to five weeks behind. If we don’t get some heat or sun soon, it will be a tough year. Where is the heat?

Leroy Getz, Savanna, Carroll County: Rain totaled 5 inches last week, with 4.8 in the last two days. This year’s crop has never been lacking moisture. The wet, cool weather is not what these crops need at this time. Corn is what it will be and needs to be drying down with warmer days. Some sudden death syndrome and white mold is showing up in the beans.

Make sure you check out that Time magazine article attacking agriculture and fire some letters back to the editors.

Ron Frieders, Waterman, DeKalb County: 2.3 inches of rain, plus 0.8 and 0.9 of an inch equals 4 inches last week. Above-normal moisture and below-normal temperatures are slowing the maturity of crops and pushing harvest back later and later. This year, we not only have to worry about an early frost, but even an average frost will hurt the crop. There are real concerns that the second-largest corn crop and the largest bean crop projected in history may not properly mature.

Unless the weather changes to warm and dry, I see lower yields and poorer quality than anticipated.

Larry Hummel, Dixon, Lee County: How often do you hear the remark, what a difference a week makes? Not this time. Cool temperatures all week with cloudy skies and 4 inches of rain has this year’s crop sitting in neutral.

Early-planted corn that is just starting to dent at the beginning of last week hadn’t changed a bit.

With record-breaking lows forecast for Saturday night, I am starting to get concerned.

Ken Reinhardt, Seaton, Mercer County: I had 1.4 inches of rain for the week.

Just across the Mississippi, more than a foot fell in a couple days. Cool and cloudy days are not doing much to get the crops to maturity.

Second cutting of hay is still being taken; hay will be in short supply. A few soybeans are being sprayed for insects. The main problem in beans is sudden death syndrome.

Ron Moore, Roseville, Warren County: We received 0.5 of an inch of rain last week. With all of the moisture this summer, the diseases have exploded.

Sudden death syndrome is widespread in our area now. It showed up two weeks ago in a few fields and now is in every field. White mold also is present in most fields. The beans are filling pods but are about two weeks behind. The corn is just starting to turn a light green. The husks also are starting to turn brown.

Some of the earlier-planted varieties are all dented, and the milk line is moving down. It will still be a few weeks before we can cut corn silage.

Jacob Streitmatter, Princeville, Peoria County: Another week has passed with rain around 1 inch or less. With cool and damp weather, the crops are not progressing as they should.

Most of the corn is in the milk stage. I have not found any in the dent stage or even close to it. A lot of the corn has started to fire and is showing nitrogen deficiency. Some fields of soybeans are really showing signs of sudden death, white mold, mites, and aphids.

Tim Green, Wyoming, Stark County: We had a nice rain Thursday night and cloudy on Friday. Many people are talking about diseases showing up in the beans. Even those who have sprayed are thinking about spraying a second time. Some people think it is too late to spray.

Mostly white mold has been the talk. A third to half of the corn around here was sprayed a month ago. Diseases are starting to show up in that corn. Our crop is just getting further and further behind. Corn is just starting to dent so it is going to be a late fall.

Mark Kerber, Chatsworth, Livingston County: The frost is coming; the frost is coming.

Producers are talking about the lateness of this crop. Black layer on some of the full-season corn could be the middle of October.

Unless hot weather arrives soon, we could be harvesting some wet corn. We received more rain last week that will help these crops fill out. No insect pressure yet and only a few cases of disease. Farm Progress Show is this week. I was making plans to go — until I broke my ankle jumping off the backhoe tractor. Will they let us use golf carts? Elevators are lowering the drying rate some, as LP and natural gas has come down. Get your dryer gas booked. Markets are “ho hum.” Is there a frost premium figured into them a little?

Ron Haase, Gilman, Iroquois County: We received 1 inch of rain. While we have moisture now, the cooler and cloudy weather is delaying development and reducing potential grain fill.

Ears are tipping back. Most of the cornfields in the area are anywhere from the dough stage to the dent stage. The milk line is about 15 percent of the way down the kernel on the earlier-planted corn. Most soybean fields are in the beginning seed (R5) or the full seed growth stage (R6). Local closing prices for Aug. 27 were: $3.15 for nearby corn, $3.03 for new-crop corn, $11.19 for nearby soybeans, and $9.73 for new-crop soybeans.

Brian Schaumburg, Chenoa, McLean County: Tom Kahle and I did our portion of the Heartland Bank crop tour and found potential yields that rival 2004, 2006, 2007, and 2008.

Higher populations and girthy ear are prevalent. The kicker is that crops have a long way to go and a lot of factors have to go right in order to finish. Foliar diseases in corn and white mold in beans are main concerns.

Corn dryers will work overtime, and a drawnout harvest may be expected. Stalk rot is starting to show up and could be a factor in 4 to 6 weeks. Corn, $3.16, $3.04, fall; soybeans, $11.31, $9.71, fall; wheat, $3.85.

Steve Ayers, Champaign, Champaign County: A quiet week until Thursday evening when the skies opened along with quite a lightning show. Rain amounts ranged from 0.6 of an inch to an eye-popping 5.5 inches five miles west of Champaign.

Maturity is still progressing at a slow rate. I heard reports of possible frost last weekend in the northern Corn Belt. Tuesday was Topflight Grain Crop’s tour with locations from Seymour to Maroa. The average was 184 bushels per acre with a range of 160 at Pierson to 199 at LaPlace.

Beans averaged 36 pods with a range of 27 at Bement to 47 at Seymour. The 2008 averages were 172 and 42 pods per plant. Some diplodia and ear worms are showing up in corn with some sudden death syndrome in soy. See you at the Farm Progress Show in Decatur.

Wilfred Dittmer, Quincy, Adams County: Another cool morning and partly cloudy, but no rainfall yet. The gauge has been almost empty since my last report with only a little over 0.1 of an inch last Friday (Aug. 21). The cool days and nights have been comfortable for us, but I think the crops still need some more heat to make a decent yield. The early corn is turning in the southern parts of the county, and later corn is still all green. Most beans are still pretty short and may not get another growth spurt unless the temps increase because the days are getting shorter. Some hay is finally getting put away after several rain delays.

Harry Schirding, Petersburg, Menard County: Rainfall last week, 0.45 of an inch. Total rainfall for August, 4.99 inches.

Normal rainfall for August, 3.5 inches. With cooler temperatures, some producers have taken the opportunity to walk their fields. Many remain skeptical the government yield forecast can be achieved, especially with the maturity this far behind normal. The earliest planted corn has black layered, but disease in the ear may result in grain quality issues at harvest.

To date, corn leaf diseases have not expanded up the plant as many predicted. Soybeans seem to be putting on the normal August second growth. Sudden death syndrome is spreading rapidly through the soybean crop this year. Corn nearby, $3.16, up 7 cents; soybeans nearby, $11.46, up $1.24; corn for January, $3.11, up 7 cents; soybeans for January, $9.90, up 45 cents.

Tom Ritter, Blue Mound, Macon County: Moisture is adequate at this point with 3 inches the previous week. Corn planted in late April is showing signs of maturing with dry leaves starting to come on, but that is only approximately 5 percent of the crop. The vast majority of the corn planted in late May is still very green and a long way from harvest. It definitely will be at a higher moisture when harvest does begin. Soybeans continue to progress but are extremely short. It’s too early to tell what type of crop we are looking at, especially with soybeans. The previous rains were beneficial. Overall, crop prospects are good only. We will definitely not be in the excellent area, but hopefully, will not be in the fair category. Farmers also are looking forward to the Farm Progress Show in Decatur.

Todd Easton, Charleston, Coles County: Another week and how many left to go? With the markets in their usual lateAugust doldrums, it seems all the local talk has shifted to when will the corn be dry or at least dry enough to harvest. After a reader suggestion to mention our growing-degree-day situation, I estimate the majority of the late-Mayplanted corn in our county has accumulated just under 2,100 heat units. If it was an average 110-day hybrid, it will need an additional 600 units to mature. Based on average weather patterns, that should mean about a month to go before it reaches physiological maturity. If you want to take it to the elevator dry, it will be even longer. Soybeans, on the other hand, base themselves on day length and could be out of the fields by the time the corn is ready. While that would be good for our harvest schedule, I hope it also does not bring too much of a yield penalty due to the late planting season. We may be seeing that already with some producers saying pod counts are down 15 percent from last year.

Jimmy Ayers, Rochester, Sangamon County: This past week in our southern part of the county we did not receive any rain.

Friday morning it looked like rain and there was rain south of us.

Corn looks fairly good — still lush and green. Beans are very green.

It seems like just a month from now a lot of us will be trying to shell corn here. They are still trying to assess damage from the storms that rolled through.

Many fields have areas that were knocked down. Farmers are not sure how they are going to handle the situation. Several grain dryers that haven’t been out of the sheds for years are coming out. It is going to be a wet harvest, probably for quite an extended period of time.

FarmWeek Page 7 Monday, August 31, 2009

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: I am finding quite a few aphids but not enough to justify spraying. Cool temps this week could cause them to explode. Corn is still mostly soft dough. We will be attending the Farm Progress Show this week, Hope to see you there. Getting bins and equipment ready and making plans on fertility and seed needs are at the top of my list.

Bean prices were up 40 cents last Thursday on basis only. If you still have cash beans left, the processors are trying to pry them loose.

David Schaal, St. Peter, Fayette County: It was another dry week and temperatures have been relatively warm in the afternoons. We still need rain. We had a little blob headed for us Friday, but it didn’t look like it would amount to much. A little bit of roadside mowing is going on.

Some soybean aphids have been a problem. Everyone has been doing a little scouting and watching those, but no spraying yet. Producers are keeping an eye on the situation. Everybody is hoping for a soaking rain and some decent weather here the next couple of months to finish this crop off.

Bob Biehl, Belleville, St. Clair County: Corn progressed slowly with the few warm days we had this past week. Beans have added some height with the rains 10 days ago. Beans are finally starting to get that dark green color and adding a few more pods. I attended a plot tour Thursday, and they pointed out aphid feeding in some bean fields. Looks like we are in for another weather change again. When this report comes out today (Monday), we will probably have had morning temperatures in the upper 40s. Not good for beans. Hope everyone gets a chance to attend the Farm Progress Show.

Kevin Raber, Browns, Wabash County: There was no rainfall last week. I was out in the cornfields taking yield samples and could tell most fields still had moisture in them. The county average from the county Farm Bureau was 156 bushels per acre. Not a big crop, but good for when it was planted. The early-planted beans still have sudden death syndrome spreading, and the late and double-crop beans have a long way to go.

Dan Meinhart, Montrose, Jasper County: Another week without rain. There is a large area in desperate need of rain.

Little or no field activity this past week. Several fields of corn are showing signs of running out of nitrogen. Lower temperatures are expected this week.

Reports received Friday morning.

Dean Shields, Murphysboro, Jackson County: No rain last week. It has dried out and is on the cool side with nice weather. The corn in some areas is just starting to turn a little bit. Beans are growing really well, and pods are filling out nicely. The same for the milo. It was a good week for everything. Everybody is busy getting harvest equipment ready and looking forward to harvest. It is going to be late, but hopefully, the frost will stay away in our area because we don’t need an early frost.

That is one of the biggest concerns right now.

Ken Taake, Ullin, Pulaski County: It has been dry here in Pulaski County. We sure could use a shower. Our earliest corn is just starting to black layer, while the late corn has a long way to go.

Beans range from just starting to turn to being in full bloom. I think harvest is certainly going to be late, and it looks like it may drag on for quite awhile. Sudden death syndrome is starting to show in some of the early soybeans. Weather will determine how bad it gets. Young Farmers are going to do the yield checks on Monday (today), so by the next report I should have something on what yields will be across the county.

Sorghum checkoff program U of I crop research roundup CORN LESION NEMAapplication of a soil-applied insectiseeks to close ‘technology gap’ TODES were found in 92 percent of cide on Bt fields, according to Ron

BY DANIEL GRANT FarmWeek

The creation of the United Sorghum Checkoff Program (USCP), which began collecting funds about a year ago, could be crucial to boost research efforts and yields for the crop also known as milo.

Shelee Padgett, eastern states field services director for USCP, last week discussed the effort during an interview with FarmWeek.

“Over the years, sorghum acres have declined quite a bit” Padgett said.

“That led to decreased private investment and a technology gap developed between sorghum and other crops such as corn and beans.”

Sorghum acres in the U.S. between 2008 and 2009 declined from 7.3 million to 5.9 million, according to USDA. The top five producing states, which comprise the “Sorghum Belt,” are Kansas, Texas, Nebraska, Oklahoma, and Louisiana.

In Illinois, sorghum acres the past two seasons declined from 76,000 acres to 58,000. Most of the crop grown in the state is along the Interstate 70 corridor and south.

A large portion of the crop (about 30 percent) is exported, but there also are sizable markets in the U.S. for sorghum in the ethanol, cattle, swine, poultry, and pet food industries, Padgett said.

“Our main strategy is to concentrate on research, market development, and promotion,” she said. And the overall goal is to “make sorghum production more profitable.”

Sorghum is an excellent rotational crop that doesn’t require a lot of input costs. It also is a “water-sipping crop” and therefore can tolerate a lack of moisture. It also grows well on lighter soils.

The current grain sorghum checkoff rate is 0.006 multiplied by the value

of each load. It is a mandatory checkoff, but producers can petition for a referendum on whether to continue the checkoff prior to July 1, 2011.

For more information visit the website {www.sorghumcheckoff.com} or call 765-586-7373.

Corn yield estimate procedure fairly simple The procedure for estimating corn yields is fairly simple; however, be ready to spend a little time in the field if you want the most accurate estimate, according to Matt Montgomery, University of Illinois Extension director in Mason County.

The first step is to determine the number of ears per acre. Start by predetermining the number of rows that you will walk into the field and the number of steps that will be taken down the row. Walk this path and stop exactly at that point.

By doing that, you will not select better-looking areas of the field, and the yield data will be more accurate, Montgomery advised.

Next, measure 17 feet 5 inches of row in 30-inch rows and count all the ears in that length of row. Multiply the number of ears counted by 1,000, to determine the number of ears per acre.

Montgomery said to select three ears, count the total number of kernels, and divide the number of kernels by three. This number will be the average number of kernels per ear.

Finally, multiply the number of kernels per ear by the number of ears per acre and divide that total by 90,000 for the estimated bushels per acre.

For the most accurate survey, repeat this type of sampling at 5-acre intervals, Montgomery added

sampled cornfields in 19 Illinois counties north of Interstate 80, according to Terry Niblack, University of Illinois crop science professor. Of those fields, more than half were at risk of moderate to severe yield loss from nematode damage, she reported.

Ninety-five percent of the sampled fields also had native, spiral nematodes, but not many fields had populations high enough to cause yield loss, she said.

Niblack emphasized soil samples are required to find corn nematodes and the identification must be done by soil labs with corn nematode experience.

The U of I study of Northern Illinois was so fruitful that researchers are sampling cornfields for nematodes in the rest of the state this summer. *** JAPANESE BEETLES, their preferences for invading soybean field edges compared to field interiors, and their influence on crop damage are being studied, said Joe Spencer, a scientist with the Illinois Natural History Survey.

Preliminary results from the 2009 survey show the beetle populations vary widely not only among counties, but even within a field, the scientist reported. However, the beetles tend to congregate more in field edges than in the interiors, he added.

The scientists want to determine if there is a connection between size of Japanese beetle population, crop defoliation, and yield losses. The field study will continue next year, and Spencer is seeking farmer participants. *** WESTERN CORN ROOTWORMS are controlled effectively by Bt hybrids and may not require an

Estes, a U of I senior crop research specialist.

Estes reported on field surveys conducted in DeKalb, Monmouth, Perry, and Urbana. About 1,500 roots were dug for the study that tested control using Bt hybrids, a soil insecticide, or a combination of both.

“At low and moderate (rootworm population) pressure, the (Bt) controls worked well and there was no additional benefit from adding a soil insecticide,” Estes reported.

“Only in Urbana (where rootworm pressure was high), did we see benefit of adding a soil insecticide on top on a Bt hybrid,” he said. “It’s not a bad idea to scout your fields next year and maybe save yourselves some money in 2011.” *** SOYBEANS ARE TASTIER to insect pests in growing conditions with higher carbon dioxide levels, according to Elizabeth Aimsworth, a plant biology and crop sciences professor. Aimsworth is testing the potential impact on soybean production with possible atmospheric changes of global climate change.

The good news is soybeans grow better and yields are 15 percent higher when there is more carbon dioxide in the atmosphere.

The downside is the leaves also have higher sugar content, which makes them tastier to insects, Aimsworth said. In addition, U of I researchers have found soybeans produce less natural insect-feeding deterrents in high carbon-dioxide conditions.

U of I scientists have examined 25 lines of soybeans to learn how each may be impacted by warmer temperatures and higher concentrations of carbon dioxide and ozone.

FarmWeek Page 8 Monday, August 31, 2009

PRODUCTION

Wheat growers could face planting challenges

BY DANIEL GRANT FarmWeek

Wheat acres in Illinois are expected to remain stagnant or possibly decline as producers could face a number of challenges this fall.

A late harvest of corn and beans and wet conditions late last fall were key factors in Illinois farmers reducing Emerson Nafziger wheat seedings from 1.2 million acres in 2007 to 850,000 acres last year, according to Emerson Nafziger, University of Illinois Extension crop systems specialist.

“We’re going to have a delayed harvest again this year,” Nafziger said last week at the Illinois Wheat Forum in Highland.

Wheat growers also face

the possibility of reduced wheat prices this fall compared to the previous year and a challenge to find John Brink quality seeds due to widespread outbreaks this past season of Fusarium head blight (scab).

“Everybody realizes the price and lateness of the soy harvest will be two contributing facPhil Needham tors to this fall’s wheat acres,” said John Brink, a Washington County farmer and president of the Illinois Wheat Association.

“The best we can hope for is to kind of hold acres where

they’re at,” he continued.

“But I think we could be in for another reduction.”

Brink predicted a large portion of the soybean crop in the southern half of Illinois won’t be harvested until mid-October.

If wheat planting is delayed, farmers should consider increasing seeding rates to establish quality stands, according to Phil Needham, owner of Needham Ag Technologies in Calhoun, Ky. He told producers seeding rates on Oct. 1 should range from 275 to 325 seeds per square yard (1.3 million to 1.6 million seeds per acre).

But if planting is pushed until the end of October, the rate should be boosted to a range of 350 to 400 seeds per square yard (1.7 million to 1.9 million seeds per acre).

“As soil conditions deteriorate, seed rates need to go up

in response,” Needham said.

He said producers should select varieties that have better-than-average toler-

some areas.

Nafziger recommended producers drill about 1.5 million seeds per acre and apply

‘The best we can hope for is to kind of hold acres where they’re at. But I think we could be in for another reduction.’

— John Brink President, Illinois Wheat Association

ance to head scab to maximize yields.

But Nafziger said producers shouldn’t rule out high-yielding varieties simply based on scab ratings because the disease is a problem only one or two years out of every five in

about 120 pounds of nitrogen per acre in Southern Illinois and 90 pounds of nitrogen per acre in Northern Illinois.

A seed treatment must return at least two to three bushels per acre to pay for itself, he added.

FarmWeek Page 9 Monday, August 31, 2009

EDUCATION

ISU sees jump in ag enrollment, renovated facilities

BY KAY SHIPMAN FarmWeek

Illinois State University (ISU) completed a $1 million renovation of agriculture classrooms and labs in time for the flush of agriculture students this fall on the Normal campus.

Last week’s preliminary fall enrollment increased the number of agriculture students to 290 from 256 last year, according to Rob Rhykerd, soil science professor and ag department chairman.

Overall, ag enrollment should be more than 10 percent higher even if the number decreases slightly during the second week of class, he added.

Rhykerd noted across-the-board increases in ag programs from animal science to agronomy. The number of agriculture education students nearly doubled from 17 to 30, he added.

“We attribute it (the increase) to our faculties, who have really worked at recruiting,” Rhykerd said.

Ag faculty and students have moved into renovated ag science and teaching labs in the Ropp Agricultural Building. Turner Hall, which had housed the ag labs, is undergoing construction for next year.

“We now have these state-of-the-art teaching facilities for students,” Rhykerd said. “We’ll be able to do things in classes that we couldn’t do before.”

The spacious drafting lab with 25 tables is vastly different from the old cramped quarters with no air conditioning, bad lighting, and poor acoustics.

Last week, landscape design students each worked at a separate drafting table while they looked over plans for a prospective landscape project.

In another plus for the university, Kerry Tudor, an agricultural economics professor, received a national teaching award.

Tudor was named a distinguished educator by the American Association of State Colleges of Agriculture and Renewable Resources. He will receive his award in October at the group’s annual meeting.

A 22-year ISU faculty member, Tudor has taught a variety of agribusiness courses and works closely with ISU’s study-abroad program in France.

David Kopsell, left, Illinois State University horticulture professor, works with landscape design students in the newly designed drafting lab on the Normal campus.

Illinois State University animal nutrition students listen as Jonathan Holt, animal science professor, describes a lab exercise on animal digestive tracts. The lab was part of a $1 million renovation of ag facilities on the Normal campus. (Photos by Kay Shipman)

FarmWeek Page 10 Monday, August 31, 2009

ENERGY

FSA phasing in new biomass crop program Illinois farmers will have to wait

BY KAY SHIPMAN FarmWeek

Illinois farmers must wait before they are able to participate in a new biomass crop assistance program (BCAP) administered by the Farm Service Agency (FSA).

BCAP, which is part of the farm bill, will provide matching payments, up to $45 per ton, to farmers and other participants for eligible biomass material delivered to FSAapproved biomass facilities.

The biomass must be used for heat, power, biobased prod-

ucts, or biofuels.

To date, USDA has approved only five bioconversion facilities in the nation.

Three are in California. Another, the Show Me Energy Coop, is in Missouri, and the fifth is in New York.

Illinois FSA has received interest from four or five energy producers around Illinois, but none has submitted applications to become an approved biomass conversion facility, according to Don King, Illinois FSA conservation chief.

BCAP will be implemented in two phases. The first phase will match payments for eligible biomass crops and materials.

“This is a different type of program. It’s not only miscanthus and switchgrass, but also wood byproducts that could be an energy source,” King explained. “A participant could be a sawmill that processes logs and has this wood byproduct left.”

Before delivering any eligible biomass to an approved facility, a BCAP participant will need to complete an application form at the local FSA office, King said. After delivering the biomass, the participant will take the receipt to the local FSA for payment.

“Once they get approval, we will make matching payments up to $45 per ton,” King said.

The second phase of BCAP will be a land retirement program, which King speculated may be implemented next year.

A participant will sign a contract agreeing to switch land from traditional crop production to biomass crop production. Five-year contracts will be offered for annual or perennial biomass crops with 15-year contracts for woody biomass.

Participants will receive annual payments and costshare payments up to 75 percent of the cost to establish the biomass crop.

Additional information will be available online at {www. fsa.usda.gov}. Select energy programs and then select Biomass Crop Assistance Program. Interested participants also may contact the state and county FSA offices.

Illinois company charged with clean air violations An Illinois power company has been charged with violating federal clean air rules at its

coal-fired power plants.

The U.S. Justice Department, U.S. Environmental Protection Agency, and the Illinois attorney general filed a lawsuit last week against Midwest Generation LLC. The company was accused of modifying six of its plants without installing required pollution control equipment. Two plants are in Chicago.

Other plants are located in Joliet, Pekin, Romeoville, and Waukegan.

The company faces potential fines worth millions of dollars and may be required to install new equipment to control emissions.

“I am very concerned about the negative health effects that these aging plants have on the people who live in the communities where the Midwest Gen facilities are located,” said Attorney General Lisa Madigan.

“All Midwest Generation power plants must comply with the Clear Air Act and the Illinois Environmental Protection Act to safeguard public health and the environment.”

The lawsuit alleges Midwest Generation illegally is emitting massive amounts of sulfur dioxide, nitrogen oxide, and particulate matter.

The action is the latest in a series of Clean Air Act cases brought by the government against coal-fired power plants.

FarmWeek Page 11 Monday, August 31, 2009

FROM THE COUNTIES

E

DGAR — Farm Bureau will sponsor a bus trip Wednesday to the Farm Progress Show, Decatur. The bus will leave from the former K-Mart parking lot at 7 a.m. Cost is $30. Call the Farm Bureau office at 217-465-8511 for reservations or more information.

• Farm Bureau will sponsor a truck and transportation safety meeting at 9 a.m.

Wednesday, Sept. 9, at the Edgar County 4-H Fairgrounds. A panel of representatives from Illinois Farm Bureau, Illinois State Police, and the Illinois Department of Transportation will attend. A truck safety inspection will follow the meeting. Call the Farm

Bureau office at 217-4658511 for reservations or more information.

• Farm Bureau will sponsor a defensive driving course from 10 a.m. to 3 p.m. Tuesday and Wednesday, Sept. 29-30, at the Edgar County 4-H building.

Cost is $40, which includes lunch and materials. Those 55 and over who complete the course may be eligible for a discount on their auto insurance. Call the Farm Bureau office for more information.

FFINGHAM — Farm Bureau will sponsor a cookout from 4 to 7 p.m. Thursday at Martin’s IGA, Effingham. Pork sandwiches, chips, and drink will be sold with proceeds

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benefiting the Effingham County Farm Bureau Foundation. Call the Farm Bureau office at 217-342-2103 NOX — Seats are still available for the bus trip Wednesday to the Farm Progress Show. The bus will leave the Warren-Henderson County Farm Bureau office at 5:30 a.m. and the Knox Agri Center at 6 a.m. Cost is $45 for members. Call the Farm Bureau office at 342-2036 for reservations or more information.

ASALLE — Farm Bureau has added two new discount programs for its members. Mendota Connections, 725 Washington St., Mendota, is offering $5 off Webkinz. Cost will be $7.95.

Ekana Nursery and Landscap-

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ing, 417 E. Rt. 23, Mendota, has 10 percent off regularly priced merchandise.

IVINGSTON — Farm Bureau, Bank of Pontiac, and Pontiac First United Method Church will collect international phone cards to send to military personnel. Monetary contributions may be mailed to Phone Cards for Troops, Livingston County Farm Bureau, PO Box 410, Pontiac, Ill. 61764. Care packages also will be sent to troops for Christmas. Call the Farm Bureau office at 815842-1103 for items needed.

Deadline to send or bring contributions is Nov. 3.

TEPHENSON — A Stroke Detection Plus screening will be from 9 a.m.

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to 4:30 p.m. Thursday, Sept.

10, and from 8 a.m. to 3:30 p.m. Friday, Sept. 11, at the Farm Bureau office. Members will receive $40 off the total package. Call 877-7328258 for an appointment.

ERMILION — The Ag in the Classroom open house will be from 4 to 7 p.m. Wednesday and from 4 to 5 p.m. Thursday at the Farm Bureau auditorium. Staci Walker, ag literacy coordinator, will have ag learning kits and materials available for teachers. Call the Farm Bureau office at 217-442-8713 for more information.

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

DATEBOOK Aug. 28-Sept. 7 DuQuoin State Fair, DuQuoin.

Sept. 1-3 Farm Progress Show, Decatur Sept. 8-10 Illinois Ag in the Classroom Bike Ride, Mattoon.

Auction Calendar Mon., Aug. 31. 9 a.m. Closing Out Farm Auction. Ron Newby, MATTOON, IL. Bauer Auction Service.

Thurs., Sept. 3. 10 a.m. 133.66 Ac. LaSalle Co. Dennis and Sharon Nickels, SENECA, IL. McConville Auction.

Thurs., Sept. 3. 10 a.m. Farm machinery and miscellaneous. J.R. Newby Estate, MATTOON, IL. Bauer Auction Service.

Thurs., Sept. 3. 10 a.m. Crawford Co. IL Land Auction. Peggy Sullivan, HUTSONVILLE, IL. Parrott Real Estate & Auction Co., LLC. Wed., Sept. 9. 198 Acres McLean County. Soy Capital Ag Services.

Thurs., Sept. 10. 10 a.m. Farm and Livestock Eq. and Miscellaneous.

Heritage Pork Farm, Inc. and Pork Place, Inc., LINCOLN, IL. Mike Maske Auction Service.

Sat., Sept. 12. 10 a.m. Estate Farm Auction. Everett Quint Estate, METROPOLIS, IL. Kent Korte, Auctioneer Wed., Sept. 16. 251 Acres McLean County. Soy Capital Ag Services.

Tues., Sept. 22. 80 Acres Edgar County. Soy Capital Ag Services Sat., Oct. 3. 10 a.m. Land Auction.

Kenneth and Sam Gehant, MENDOTA, IL. Espe Auctioneering.

FarmWeek Page 12 Monday, August 31, 2009

REGULATIONS

All mini-bulk pesticide tanks Berries on the menu for sustainable tour must meet new standards

BY KAY SHIPMAN FarmWeek

All portable, refillable pesticide containers, commonly known as mini-bulk tanks, must meet new federal requirements by August 2011.

After the deadline, any existing non-compliant tank cannot be used.

Tank owners are responsible for ensuring their tanks meet the U.S. Environmental Protection standards.

If a container doesn’t meet the requirements, it must be repaired or replaced and recycled.

The Illinois Fertilizer and Chemical Association (IFCA) is offering a recycling program in September.

Any farmer who owns a mini-bulk tank and is interested in the program may contact IFCA’s Kevin Runkle at 309-8272774.

“This recycling program is separate from the annual agrichemical container recycling program,” said Nancy Erickson, Illinois Farm Bureau

director of natural and environmental resources.

Agrichemical retailers and other tank owners are identifying the tanks that must be phased out and those that must be modified before August 2011, Erickson said.

After the 2011 deadline, agrichemical dealers legally cannot fill a non-compliant tank, including those owned by a farmer or another individual, she added.

Berries, along with other fruits and vegetables, are the mainstay of River Front Berry Farm, near Martinton in Iroquois County.

The University of Illinois Extension is sponsoring a Sept. 22 tour of the farm.

Bob and Coleen Blain, both retired educators, raise strawberries, red and black raspberries, blueberries, and gooseberries along with apples, cherries, and peaches.

They also grow and sell more than 20 vegetable crops, including asparagus, garlic, and sweet corn.

The Blains sell their produce at farmers’ markets, but rely on the honor system for on-farm sales when they’re away from the farm.

Signs instruct customers how to select, weigh, and package their produce.

They are directed to record purchases on a form and to put payment in a container.

“This (honor) system has worked very successfully since the origin of River Front Berry Farm. We regularly brag about how our customers allow this system to work,” said Bob Blain.

The tour will begin at 9 a.m. and conclude at 1 p.m. after lunch on the farm. A $20 registration fee includes the meal.

Registration is required by Sept. 15.

To register or obtain more information, go online to {https://web.extension.uiuc.e du/registration/default.cfm?R egistrationID=2845}.

To register by phone, call Donna Cray at 217-241-4644.

More information about River Front Berry Farm is online at {www.riverfrontberry farm.com}.

FarmWeek Page 13 Monday, August 31, 2009

GROWMARK

GROWMARK income down; still fourth highest Despite the downturn in the economy, GROWMARK during the fiscal year that ended Aug. 31 expected to post its fourth-highest income in history.

Senior Vice President of Finance Jeff Solberg announced sales of $6.1 billion for the 2008-09 fiscal year with net income estimated at $75 million.

GROWMARK officials at the annual meeting last week in Chicago reported unaudited, estimated results for the fiscal year.

“The 2009 fiscal year has been challenging for many farmers as they attempted to plant a crop with extremely volatile pricing for fuel, fertilizer, and grain,” said Bill Davisson, GROWMARK chief executive officer.

“Overall, I believe this has been a successful year on many fronts, and when looked at his-

torically, this is still projected to be the fourth-highest income in our history.”

More than $62 million in patronage refunds will be returned to GROWMARK member cooperatives.

Energy division The energy division posted gross income of $92 million.

Investments continue to be made in division infrastructure with biodiesel blending capabilities at the Menard County terminal and at Madison Service Co.’s Roxana bulk plant.

GROWMARK received more than $50 million in patronage from the National Cooperative Refinery Association (NCRA). The cooperative owns

nearly 19 percent of the refinery operation located in McPherson, Kan. Agronomy/seed divisions GROWMARK seed division sales were expected to top $250 million, a 30 percent increase over last year. FS corn sales grew 5 percent this year, Davisson said.

A 20 percent sales increase is projected by the crop protection division, with gross income estimated at $34 million.

Plant food operations resulted in a gross income loss.

Davisson cited a worldwide economic downturn, which created significant lowering of demand and an oversupply of fertilizer, resulting in a huge drop

Iowa manager receives second Chairman’s Award Last week, for the second year in a row, Agriland FS Inc. General Manager John Knobloch received the Chairman’s Award for Excellence in Management from GROWMARK Chairman Dan Kelley.

The award was presented at the cooperative’s annual meeting in Chicago.

Agriland FS is based in

Winterset, Iowa.

The Chairman’s Award is the highest honor GROWMARK bestows on member cooperative managers who have achieved outstanding results in the following management categories: percent or dollars of sales increase, credit administration, operating expense efficiency, and return on invested capital.

Co-ops receive performance awards Four Illinois FS member cooperatives were recognized by GROWMARK Inc. for business performance improvement during the GROWMARK annual meeting in Chicago last week.

Over a five-year time frame, each cooperative’s return on invested capital improvement is measured in comparison to other cooperatives in the system. From this measurement, the Performance Improvement Award was developed.

The cooperative with the highest degree of improvement was Ag View FS Inc., Princeton. Mark Orr is the manager and Ron Pierson is president.

Other Illinois cooperatives receiving the award were: • Lincoln Land FS Inc., Jacksonville. Keith Hufendick is manager, and Joe Pickrell is president.

• Stephenson Service Co., Freeport. Jay Kempel is manager and Keith Meier is president.

• West Central FS Inc., Macomb. Barry Schmidt is manager, and Duane Deitrich is president.

GROWMARK directors re-elected Three Illinois farmers Friday were re-elected to the GROWMARK’s Board of Directors during the cooperative’s annual meeting Friday in Chicago.

They are: • Rick Nelson of Paxton, who was elected to the GROWMARK board in 1990; he has served as vice chairman of the board since 2004. He also serves on the board of directors for Ludlow Cooperative Elevator and Heritage FS Inc. He and his wife, Patricia, farm more than 2,000 acres of corn and soybeans.

• Larry Garlisch of Forest City has served on the GROWMARK board since 2006. He has been a director of Sunrise Ag Service Co. since 2002 and has served as the vice president of Fulton FS since 2000. He and his wife, Nancy, along with his cousin, Robert, specialize in irrigated seed corn, specialty corns, row crops, and a variety of specialty crops.

• Randy Newcomb of Ashley has served on the GROWMARK board since 1987. He currently is serving as president of AgriPride FS Inc., Red Bud and Washington County Farm Bureau. He and his wife, Chris, farm 5,500 acres in Southern Illinois with their son, Alan.

Each will serve a three-year term.

The award is given to general managers whose performance has placed them within the top 20 percent of GROWMARK member cooperatives in each of the key management areas.

in fertilizer prices after inventories at GROWMARK were in place for fall application.

“Still, if you evaluate plant food results over 24 months instead of 12, it was the best period of internal income in our history.”

Facility planning and supply division The cooperative’s facility planning and supply division posted increases in sales and gross income for the fourth consecutive year.

Contributing to this success was construction of commercial grain storage facilities and programs with equipment manufacturers as FS member cooperatives invested in application equipment and rolling stock.

Grain division In addition to grain partnering efforts with local FS member cooperatives in Illinois and Ontario, Canada, the GROWMARK System is adding storage capacity and connecting farmers with more end-use markets through a partnership with Central States Enterprises.

MID-CO Commodities had $1 million in income this

year and will return $250,000 in cash patronage.

AgriVisor LLC, a joint venture between GROWMARK and Illinois Farm Bureau, continues to bring a broad spectrum of products and services which help producers develop and implement risk management strategies tailored to their operations.

GROWMARK honors ag leader Denyse Guy, executive director of the Ontario Cooperative Association (On Co-op), was honored last week with the “Friend of GROWMARK” award at the GROWMARK annual meeting in Chicago.

In her role as executive director, Guy serves as a resource and voice for credit unions and cooperatives in Ontario, Canada. On Co-op partners with GROWMARK to enhance awareness about cooperatives and provide programs and services that strengthen, support, and promote the cooperative sector throughout the province.

FarmWeek Page 14 Monday, August 31, 2009

PROFITABILITY

‘Information Age’ of agriculture benefits producers

BY SID PARKS

Modern agriculture production has passed through several “ages” over the past 100 years. We have moved from using horses to horsepower.

We’ve adopted better fertility practices to manage the nutrient Sid Parks needs of our crops.

Hybrid seed corn was introduced, as well as the addition of many crop protection products. Today, many technologies are incorporated into the seeds we plant. Most recently, we have

seen the addition of various precision technologies.

I recently had the opportunity to participate in InfoAg 2009 held in Springfield. This conference brings producers and retailers interested in site-specific techniques and technology together to interact with vendors, educators, and practitioners on a wide range of topics.

It was at this year’s conference, I sensed the focus shift from tools to the management of information.

While it’s undeniable we needed the hardware developed to collect data and control equipment, and while improvements continue to be made in various products, the

industry essentially has been able to collect data for more than a decade.

However, during that time, many have wondered how to use the data and how to turn it into useful information from which management decisions can be made.

Today, I believe many of those processes are maturing and practitioners have the ability to provide more tangible products than ever before.

We can analyze yield maps, collected with GPS positional data, to evaluate relative productivity across fields and farms.

We can compare performance of one hybrid (or variety) to another, hybrids

across soil types, or hybrids with treatments of various crop inputs.

According to a 2007 survey by the Precision Ag Institute, 80 percent of farmers using precision agriculture indicated they’ve benefited anywhere from $5 to $9 per acre, depending on crop and region.

The average return for corn and soybeans fell just below $7 per acre annually, depending on the type of technology used.

Among those technologies are grid soil sampling, variable rate application of fertilizer and lime, yield monitoring and mapping, and more recently automated spray boom control, automated

seed control, and assisted or automated steering.

Because everyone’s needs are different, as is their tolerance for innovation/frustration, I am not advocating the adoption of these technologies for their sake alone.

However, if you don’t have a good understanding of the precision technologies that might be beneficial to your operation, contact your FS crop specialist to schedule a visit and explore what options are available.

Sid Parks is GROWMARK’s manager of precision farming.

His e-mail address is sparks@growmark.com.

Window for fall fertilizer applications could be small

BY DANIEL GRANT FarmWeek

The window to apply fertilizer this fall could be small as harvest in Illinois is expected to last through October and into November in many areas.

The situation was similar last year, and many fertilizer retailers were stuck with inventories that went unused due to a late harvest followed by poor field conditions.

Fertilizer retailers, therefore, could be “gun-shy” this season about filling their

inventories, according to Jean Payne, president of the Illinois Fertilizer and Chemical Association.

“We’re setting ourselves up for another difficult fall,” Payne told FarmWeek.

“We’re looking at a onemonth window (for fertilizer applications) as the crop probably won’t come out until October.”

Brian Waddell, account manager for Mosaic — one of the world’s leading producers of concentrated phosphate and potash crop nutri-

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 $6.91-$31.25 $18.83 n/a n/a n/a n/a This Week Last Week 21,274 19,902 *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 $44.57 $44.31 $32.98 $32.79

Change 0.26 0.19

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

This week 84.78 84.81

Prv. week 82.23 82.17

Change 2.55 2.64

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) This week Prev. week Change 99.65 100.66 -1.01

Lamb prices Confirmed lamb and sheep sales This week 799 Last week 810 Last year 876 Wooled Slaughter Lambs: Choice and Prime 1-2: 90-110 lbs, $98. Choice and Prime 2-3: 110-130 lbs., $93-$95. 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 08-20-09 7.6 16.7 08-13-09 6.7 14.3 Last year 8.9 26.6 Season total 1211.1 162.8 Previous season total 1106.1 295.2 USDA projected total 1210 980 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Corn 38.6 45.4 32.7 1722.6 2294.6 1700

‘We’re setting ourselves up for another difficult fall.’

— Jean Payne Illinois Fertilizer and Chemical Association president

ents — agreed that time for fall fertilizer applications likely will be short in Illinois.

“When I look at the potash fertilizer market, I feel positive it’s going to be a late fall,” said Waddell, who this month provided a fertilizer industry outlook to the Illinois Farm Bureau Board of Directors. “We see buying reluctance in the marketplace.”

Much of that reluctance by farmers last year was because prices for many fertilizers were at record-high levels.

U.S. phosphate use declined 15 to 20 percent in 2008/09 due to a sharp drop in application rates, Waddell reported.

Farmers can expect some price relief this fall, particularly for nitrogen and phosphate.

“Overall, fertilizer prices should be less than a year ago,” Waddell said.

Bryce Knorr, Farm Futures senior editor and a commodity trading adviser, last month predicted farmers should be able to book anhydrous ammonia this fall at $400 to $500 per ton after prices peaked last year at about $1,200 per ton.

However, potash prices haven’t been recalibrated to the extent as nitrogen. Buyer reluctance forced Mosaic to shut down some of its production until demand returns,

Waddell reported.

“There has been a lot of resistance to buy potash at

these levels (which recently were near $800 per ton),” Waddell said. “We’ve not seen the summer-fill period yet (as of last week) and usually we’re done by now.”

A key to the potash market could be Russia and whether it boosts shipments to the U.S., Waddell added. Russia is the second-largest producer of potash in the world behind Canada.

FarmWeek Page 15 Monday, August 31, 2009

PROFITABILITY Corn Strategy

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

Cents per bu.

✓2008 crop: We are inclined to hold inventories until after harvest, or use a marketing strategy that would keep pricing open until later this year on current inventories. ✓2009 crop: It appears corn is entering into a sideways trend prior to putting in the 20-week cycle low, which is expected to bottom in the month of September. Unless prices would unexpectedly rally into the $3.40s, hold off on catch-up sales until sometime after harvest unless you need to move bushels at harvest for space reasons. Even then, we would use a marketing strategy that would keep pricing options open. ❖Fundamentals: Fundamentals in corn remain lackluster as the trade continues to eye the possibility of a generally favorable crop. In addition, export demand and outside markets have been unable to provide much positive momentum.

However, weather will remain on the radar, as ideally the crop needs an extended fall to produce ultimate yield potential.

Soybean Strategy

Can soybean demand be sustained?

Soybean export sales were able to exceed USDA projections because of significant demand from China. Howev-

Basis charts

er, the question going forward is how front-end-loaded these sales were and if the business will be able to be sustained in the future.

However, it was encouraging to see weekly export sales once again exceed trade expectations.

Not surprisingly, wheat sales continue to lag. Competition for export business is extremely competitive considering the large domestic and international supply of wheat out in the market.

However, with Egypt recently stepping up and purchasing from the U.S. and strong weekly sales, it could be an early indication the tide is starting to shift.

Corn export business continues at a steady pace and has remained consistent with projections, which indicates U.S. corn prices are at a competitive level.

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

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

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✓2008 crop: The old-crop gained momentum following fresh demand out of China, which resurfaced concern about tight supplies. We still prefer to carry inventories until after harvest. ✓2009 crop: It appears as if the 8- to 9-week cycle bottom will come in September and after which point we anticipate better upside potential. The market recently surpassed our $9.90 target on November futures for needed harvest or catch-up sales. If you failed to pull the trigger, use rallies to get caught up. In this volatile environment, it may pay to still check the Cash Strategist Hotline occasionally. ❖Fundamentals: Typically at this time of year, weather becomes a non-issue. However, following the late planting season, it now appears as if the next six weeks are going to be extremely critical. The crop is vulnerable to frost, and the current weather models are calling for unseasonably cool temperatures to settle into the

Midwest for an extended period of time, which could ultimately affect yield potential.

Wheat Strategy ✓2009 crop: Wheat recently got a boost on fresh export demand out of Egypt.

However, it is going to be difficult to generate much buying interest as the 40-week cycle is in a window for a bottom. We see limited downside risk at these prices. Hold off additional sales; better pricing opportunities should come this fall or winter. Before advising even catch-up sales we’re going

to give the market an opportunity to get above $5. ❖Fundamentals: It was encouraging to see sales to Egypt being sourced out of the United States. In addition, weekly export sales came in at 652,700 tons (23.9 million bushels) vs. trade expectations for 350,000450,000 tons (12.8 million to 13.1 million bushels). It may be premature to say the demand tide has shifted in wheat, but it is something we will be keeping a close eye on in the coming weeks. Also, pockets of weather issues continue to surface in Argentina and Australia.

FarmWeek Page 16 Monday, August 31, 2009

PERSPECTIVES

Let’s be like North Dakota

EMERGENCY Are you ready for a farm accident?

Imagine you, a family member, or employee involved in the following scenario with an emergency dispatcher: “911. What is your emergency?”

“Help me! I think I’m going to pass out!”

“What’s wrong? Why do you think you are going to pass out?”

“I just pulled my foot loose from the combine head and I can’t see, but I think my foot is gone!”

“Can you tell me where GIB you are?”

CADY “I’m on an end row back by the river a mile from the road. I’m passing out! Help me!”

Do you think what you’ve just read is exaggerated? It is not.

Those are not exactly precise directions and it may take responders awhile to find this victim.

Illinois sheriffs, for the most part, are in charge of the public service answering points that dispatch ambulance, fire rescue, and fire departments.

The men and women who are trained to answer the 911 phone and work with these problems everyday will tell you these situations happen. You can be better prepared.

With the recent cool temperatures, we are

reminded of fall. Somewhere on the sand ground, we see the corn bottom leaves are slightly tan. As we drive down our roadways and look into farmyards, we see machines being readied for harvest.

Belts are rolled over and inspected for cracks and tightness. Chains and sprockets are carefully examined.

Mr. farmer, you tell yourself that you are ready, but if you have overlooked a $20 item that might save your life, or your wife’s, or someone helping you, you are not.

I am talking about a first aid kit.

If you need help determining what is needed in a farm first aid kit, ask an emergency medical technician with your volunteer ambulance service, a firefighter, a nurse or doctor in a hospital emergency room, a sheriff ’s deputy, a state trooper, or anyone else with emergency medical knowledge.

My deputies and I have had to tell people in emergencies to rip off T-shirts, underwear, or whatever else they can find to use as an emergency bandage.

With a first aid kit, that wouldn’t be necessary.

Farmers need first aid items close to them when they’re operating farm machinery. Git ‘er done now and be really ready for fall. Please.

A recent copy of the “Washington Post” newspaper had a front-page story featuring a woman who packed up her most precious belongings in her rusty pick-up truck and drove 1,000 miles from Ohio to North Dakota. That’s where the jobs are.

North Dakota has the lowest unemployment rate in the nation at 4.2 percent, a state budget surplus, and 8,000 unfilled jobs.

What’s going on here? North Dakota is healthy and happy, and California is in turmoil and going broke.

The answer is found in the rural counties all across this nation. Rural, small-town people are more conservative. Our county banks didn’t JOHN make a lot of risky loans.

BLOCK Rural America believes in personal responsibility and self-reliance. I know that what I’m saying is not absolute, but there is a lot of truth in my premise.

We all know that California is liberal and that big cities lean toward the liberal.

In loose terms, that means they expect the government to always be there to fix their problems.

I think as a nation we depend too much on the government.

We are never satisfied. Congress every day is ready to invent another way to spend money. Spend money on the auto industry — “Cash for clunkers.”

Spend money on “green” energy. Spend money on a new flight to the moon. Spend more money on food stamps. Fix the obesity problem. Spend, spend, spend.

The way our system works, it encourages our government to take on more responsibility and relieve the individual of that personal responsibility.

Voters will elect the candidate who promises the most. The entitlement mentality is going to ruin our country.

I place my confidence in the conservative, good judgment of rural America. Sure, we’ve made some mistakes, but when this Congress comes back after its August recess, keep an eye on its members.

We need to demand that any new legislation puts more responsibility on the individual — more self-reliance. We need to balance our budget.

Let’s be more like North Dakota than California.

John Block of Gilson, a former U.S. agriculture secretary in the Reagan administration, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman, which specializes in ag issues.

His e-mail address is jblock@ofwlaw.com.

Gib Cady is the sheriff of Henry County and chairman of the Illinois Sheriff ’s Association. His e-mail address is gcady@henrycty.com.

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Before agreeing to do the milking, Jimmy presented Mr. Benson with a few demands.