Farmweek 12-pager February 22 2010.pdf

THE U OF I EXTENSION Ser vice will focus on people in making budget-driven changes, the Illinois Farm Bureau Board was told last week. ................................3

ILLINOIS FARM BUREAU President Philip Nelson has spent much of this winter addressing a growing list of issues confronting the state’s producers. ......................5

A WEATHER FORECAST given last week in Springfield will not play well with farmers who have faced cool, wet springs for two years in a row. ..........................6

Monday, February 22, 2010

Two sections Volume 38, No. 8

Pope: Proposed redistricting amendment ‘follows the spirit’ IFB ATV priority reaches Senate floor

BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau supports a drive to change how state legislative districts are drawn because “it follows the spirit of what has always been looked at in (legislative) redistricting,” IFB Director Terry Pope told journalists last week at a Springfield news conference.

Pope joined state legislative leaders and representatives of the Terry Pope League of Women Voters and the Illinois Chamber of Commerce to promote the Fair Map Amendment Initiative. He is chairman of the IFB Legislative Redistricting Working Group.

Farm Bureau studied different redis-

tricting proposals and agreed to join the coalition that supports the Fair Map Initiative, Pope explained. (See Perspectives, page 12).

Pope added IFB also is willing to work with state lawmakers on other constitutional proposals in the General Assembly.

Last week, Sen. Christine Radogno (R-Lemont) and Rep. Tom Cross (ROswego) introduced joint resolutions that propose to change how state legislative districts are drawn. Their plan echoes the Fair Map Initiative plan.

The Fair Map Initiative — online at {www.ilfairmap.com} — seeks to put a proposal to amend the state Constitution before voters in November. The amendment would change the method used to draw state legislative districts.

Reforming the redistricting process requires a change in who draws the legislative district map, said Sen. Dale Righter (R-Mattoon).

“Will you allow elected members of the General Assembly to continue

drawing their own (district) lines or not?” Righter asked during the news conference.

“Any proposal that comes forward and still allows General Assembly incumbents to draw the lines will not result in reform.”

At a separate news conference last week, Sen. Kwame Raoul (D-Chicago), chairman of the Senate Redistricting Committee, said he welcomed the chance to debate redistricting reform proposals in the legislative process. “That’s a good thing; that’s healthy,” he said.

Democrats “hope to roll out a (redistricting reform) plan” this week, Raoul added.

Raoul questioned whether any districting reform plan can be nonpolitical: “The redistricting process is inherently political, and to pretend like it is not is dishonest at best.”

In legislative action, IFB’s legislative priority to address farm use of all-terrain vehicles (ATVs) passed in

the Senate Transportation Committee and was sent to the Senate floor last week.

SB 2566, sponsored by Sen. John Sullivan (D-Rushville), would restore farmers’ ability to drive ATVs and

FarmWeekNow.com Go to FarmWeekNow.com to listen to Terry Pope’s comments about the Illinois Fair Map Amendment.

utility-terrain vehicles on roads for farming purposes and also to cross roads with the vehicles.

The House Agriculture and Conservation Committee passed legislation that would increase some fees for the services provided by the Illinois Department of Agriculture.

HB 4866, sponsored by Rep. Dan Reitz (D-Steeleville), would generate an estimated additional $2 million and was sent to the House floor. IFB is neutral on the bill.

Liability fears dog hopes to break the ethanol ‘blend wall’

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

A potential loophole in federal approval for higher biofuels blend levels could dampen hopes for razing a rapidly approaching ethanol “blend wall.”

The need to move past the 10 percent ethanol (E10) con-

ventional gasoline limit is “a serious reality” given federal mandates to generate 36 billion gallons in biofuels use by 2022, according to Renewable Fuels Association (RFA) Market Development Director Robert White. E10 market saturation “could come quicker than we think,” he warned.

The U.S. Environmental Protection Agency (EPA) is expected by mid-year to rule on an industry-requested 15 percent ethanol (E15) waiver that would enable fuel suppliers to boost the per-gallon volume of ethanol.

At last week’s National Ethanol Conference in Orlando, Abengoa Bioenergy Corp. Executive Vice President Christopher Standlee told FarmWeek higher-level blends are “critical” to building the biofuels industry.

Abengoa plans both cornbased and cellulosic ethanol production through operations in Illinois, Nebraska,

Kansas, Indiana, and Spain.

One hitch to breaking the blend wall: EPA is eyeing the possibility of approving E15 use only for vehicles sold since 2001.

That has raised fuel retailer concerns about what National Association of Convenience Stores Vice President John Eichberger described as liability associated with “misfueling.”

Use of mid-level blends in non-approved vehicles could expose marketers to lawsuits or scrutiny under the federal Clean Air Act which “could put them out of business with one violation,” Eichberger said.

He questions “how my 17-year-old clerk is supposed to identify a 1999 vehicle.”

“The administration needs to move forward on an E15 waiver for all vehicles — not just 2001 and newer vehicles — since there’s no data to suggest

FarmWeek on the web: FarmWeekNow.com

that there’s any problem with older vehicles,” RFA President Bob Dinneen maintained.

The U.S. Department of Energy (DOE) has overseen extensive testing of E15/E20 blends in small non-road equipment and 19 different

More National Ethanol Conference coverage on page 4 later-model vehicles.

But DOE Fuels, Engines, and Emissions Research Center Director Ron Graves told FarmWeek the department does not plan to study E15 effects on older vehicles until later this year.

Marathon Petroleum Co. began blending ethanol in the 1980s.

Marathon Senior Vice President Cliff Cook said he sees real liability issues, and asked, “How do you sell a product you have to (price)

cheaper to get customers to buy, yet you don’t want all your customers to buy?”

That and issues such as how E15 would play in highpollution areas with varying clean air rules have pushed some to advocate E85 as the answer to the E10 wall.

Currently, 7.5 million E85-capable “flexible fuel” vehicles (FFV) are on U.S. roads and 2,000 stations are equipped with E85 pumps.

Fuel logistics consultant Karl Doenges notes E85 “is there and ready,” and sees E85 pump investment as “easier and cheaper than to pay the penalties” of noncompliance with federal renewable fuels requirements.

At the same time, Doenges acknowledged FFV vehicle development has outpaced E85 pump introduction.

It is estimated less than 2 percent of the ethanol in the U.S. is consumed as E85.

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

FarmWeek Page 2 Monday, February 22, 2010

Quick Takes BROADBAND PROJECT FUNDED — A regional broadband project in Northern Illinois will receive $11.8 million in federal stimulus funding. Gov. Pat Quinn and Lawrence Strickling, assistant secretary for communications and information with the U.S. Department of Commerce’s National Telecommunications and Information Administration, announced the award Friday at the DeKalb County Farm Bureau building in Sycamore.

The DeKalb Advancement of Technology Authority (DATA) will be a state-of-the-art regional fiber optic network that will be used for research, healthcare and emergency services, governmental services, education, and economic development. The project will include 100 miles of fiber in the county and includes fiber to schools and community centers.

The state has committed $1.3 million for the project’s cost.

The remaining 10 percent will come from DeKalb Fiber Optic, Northern Illinois University, and local hospitals. ,

PROMOTING FOOD CHECK-OUT WEEK — It’s Food Check-Out Week (Feb. 21-27), and many county Farm Bureaus have activities planned to educate consumers (see From the Counties, page 9). Food Check-Out Week celebrates the abundance and safety of America’s food supply.

The theme is “Stretching Your Food Dollar with Healthy, Nutritious Food” in recognition of current economic conditions. Several planned activities involve donating food to food pantries and soup kitchens.

SHARING ILLINOIS’ BUDGET PAIN — A new report from the National Conference of State Legislatures shows most states’ finances are suffering, according to the Illinois Statehouse News.

While California has the biggest budget deficit, Illinois’ $13-billion hole is the nation’s second largest. Nearly 40 other states have similar budget problems.

Tax revenues in the states aren’t keeping pace with expenses, according to Arturo Perez of the National Conference of State Legislatures. The report cited poor budgeting and a dismal economy.

In an Illinois first, Gov. Pat Quinn will post some of his budget proposals online this week. The General Assembly gave Quinn an extension on revealing his budget proposal but required some information be shared online.

U OF I CHANCELLOR’S EXPERTISE A STUNNER — Robert Easter, University of Illinois interim chancellor/provost, recently surprised some journalists at the National Press Club in Washington, D.C. Easter presented the university’s life-time achievement award in journalism to Pulitzer Prize-winning reporter Seymour Hersh, a Chicago native who wrote for the New Yorker magazine.

Easter, former dean of the College of Agricultural, Consumer, and Environmental Sciences, was chatting with other guests at the award dinner when one woman asked Easter about his area of scholarly study.

“I told her I studied pig’s feed. She was stunned,” Easter told an appreciative audience at the Council on Food and Agricultural Research. Easter is a professor of animal sciences and nutritional sciences.

(ISSN0197-6680) Vol. 38 No. 8

February 22, 2010

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USDA

USDA sees swing in both farm receipts, planted acres

BY DANIEL GRANT FarmWeek

USDA sees agriculture as a whole having a little better year in 2010 than 2009.

But economic swings are expected to have positive and negative effects on farmers within certain sectors of the industry.

Joe Glauber, USDA chief economist, last week said net cash income on U.S. farms is projected to increase this year by $5.5 billion to a total of $76.3 billion. And Joe Glauber overall net farm income from 2009 to 2010 was projected to increase by $6.7 billion to a total of $63 billion.

“Despite record production and the global recession, (commodity) price levels still remain high relative to levels of five to 10 years ago,” Glauber said at the USDA Ag Outlook Forum in Arlington, Va. The livestock sector is expected to experience the most positive growth this year.

USDA projected livestock cash receipts will increase by $11.5 billion led by a projected $7.5-billion increase in dairy receipts followed by a $2.8-billion increase in beef cattle and less than a $1-billion increase in swine receipts, according to Ted Covey, economist with the USDA Economic Research Service.

“The livestock sector should rebound some in 2010 with higher prices that are reflective of economic growth and lower production,” Glauber said.

But crop receipts in 2010 are expected to slip by $6 billion due in part to adequate-to-abundant stocks and increased competition from South America.

The projected season average price for the year was lowered to $3.60 per bushel for corn and $8.80 per bushel for soybeans.

“The net return outlook is much less favorable than two years ago,” Glauber said. “But prices still remain relatively high due to strong demand.”

Covey said the 2010 cash receipt estimate, if realized, would translate to an average drop in net cash income of $12,000 for each corn farmer.

But wheat growers are expected to absorb the biggest hit in cash receipts by a total of $2.5 billion.

“Wheat supplies for 2010/11

FarmWeekNow.com Listen to Dan Grant’s interview with Joe Glauber on the ag market outlook for 2010 at FarmWeekNow.com.

are at a 10-year high,” Glauber said. “Domestic prices will remain under pressure.”

Meanwhile, farmers this year could see production expenses rise by $700 million to $281.4 billion, which would be the second-highest ever. Increases in the price of fuel, oil, and pesticides, along with higher taxes and fees, are expected to offset a reduction in fertilizer prices.

Finally, USDA projected a swing in planted acres this year. Plantings of soybeans (77 million acres) and wheat (53.8 million acres) would be down a half million acres and 5.3 million acres, respectively, while corn acres were projected to increase from 86.5 million acres in 2009 to 89 million acres this year.

Vilsack lays out six-pronged approach to improve country’s rural economy Ag Secretary Tom Vilsack believes it’s time the U.S. gets serious about building a strong, vibrant rural America.

And that effort must start with improving the prospects for farmers and ranchers, Vilsack said during his address last week at the USDA Ag Outlook Forum in Arlington, Va. “I am concerned about the future,” said Vilsack, who noted the number of U.S. farmers has dwindled to about 2.2 million while the average age of farmers has increased to 57 years.

“Our farmers are aging at a rapid rate, and we’re seeing a contraction in the total number of farmers,” he continued.

“That mirrors what’s happening in rural America.”

The Obama administration and USDA, therefore, are working to improve the rural economy. Vilsack said USDA will focus on six specific steps to help achieve this goal.

Increase productivity USDA must focus its research on increasing productivity and protecting what farmers already are raising and growing, Vilsack said.

“We have to figure out how to do a better job protecting crops and livestock,” he said.

Protect existing markets U.S. farmers can’t increase their market share if they lose any existing markets due to issues such as food safety.

“Safer food creates greater consumer confidence,” Vilsack said.

USDA will review existing food safety regulations to help meet this goal.

Expand domestic markets USDA created the “Know Your Farmer, Know Your Food” program to help connect growers and producers with local buyers.

“There is an amazing new opportunity with locally grown and locally consumed goods,” Vilsack said.

The program also will help provide local produce to consumers who may not have access to grocery stores in rural areas.

Expand export markets U.S. officials will continue to work to enforce existing trade agreements, find new trade opportunities, and challenge trade barriers, according to Vilsack.

USDA also will step up efforts to promote the benefits of biotechnology.

“Biotechnology can help us achieve greater productivity and

environmental benefits (such as reduced use of pesticides),” Vilsack said. “We have to have a greater understanding and acceptance of that science.”

Focus on value-added opportunities Vilsack believes agriculture has the capability to help America “take back its energy destiny.”

He promoted the increased use of biofuels and alternative energy such as wind power.

He also noted USDA will continue to push for an extension of the tax credit for biodiesel.

New approach to rural development USDA plans to invest money to create opportunities in rural development.

“So many farm families rely on off-farm income,” Vilsack said. “We have to look at new dynamics to rural development.”

The Recovery and Reinvestment Act was a starting point as it designated $9 billion to expand broadband access, which should help small businesses expand their markets, Vilsack said.

The ag secretary also believes natural resources can be great economic drivers. Hunting and fishing make up a $180 billion industry, he noted. — Daniel Grant

FarmWeek Page 3 Monday, February 15, 2010

STATE

Hoeft choosing people over buildings in Extension cuts

BY KAY SHIPMAN FarmWeek

The University of Illinois Extension Service is being forced to make changes because of budget problems, but it will focus on people in making the transition, interim Extension director Bob Hoeft told the Illinois Farm Bureau Board last week.

Hoeft, former head of the U of I crop sciences department and a well-known soil fertility expert, encouraged people, especially members of Extension Bob Hoeft councils and county boards, to express their opinions at listening sessions beginning this week around the state.

“We’re going to stick to our core val-

ues so we can deliver programs to people,” Hoeft said. “Programs must have a strong local impact and a local presence, which to me means our people going out there doing the job ... I want to keep people over buildings.”

The budget outlook has become worse since Hoeft first announced possible cuts in Extension funding of $2 million to $5 million next year. Hoeft estimated Extension now may need to cut between $4 million and $7 million.

Although Hoeft stressed no reorganization plan exists, he said he wants a plan in place by April. Hoeft explained he wants to act quickly both because of finances and so he can provide answers to Extension employees.

Hoeft may not have a plan, but he did offer the IFB board a few ideas about his vision. For example, local Extension offices may begin covering a “cluster” of

counties that would be determined by the individual counties.

Hoeft reasoned multi-county offices would house more educators and may even include regional educators, if the regional Extension centers are closed.

Local Extension programs will be based solely on research, but that research may come from different colleges within the U of I or from other universities, Hoeft said.

“Bear with us, we need all the help we can get,” Hoeft said. “If we pull together, I think we can put together a system that is effective.”

Listening session will be: • Monday, 5 to 7 p.m., Champaign Unit Auditorium, 801 N. Country Fair Drive, Champaign; • Tuesday, 6:30 to 8:30 p.m., John A. Logan College, Hancock Conference Center, 700 College Road, Carterville;

• Thursday, 2 to 4 p.m., DeKalb Unit Office, 1350 W. Prairie Drive, Sycamore; • Friday, 2 to 4 p.m., Effingham Unit Office, 1209 Wenthe Drive, Effingham; • March 1, 7 to 9 p.m., Okawville Community Club Building, 511 S. Hanover St., Okawville; • March 2, 6 to 8 p.m., Kane Unit Office, 535 S. Randall Rd., St. Charles; • March 4, 1 to 3 p.m., McDonough Unit Auditorium, 3022 W. Jackson, Macomb; • March 4, 6 to 8 p.m., Bureau Unit Office, 850 Thompson St., Princeton; • March 9, 6 to 8 p.m., U of I Extension Center, Illini Auditorium, Illinois State Fairgrounds, 1101 E. Sangamon Ave., Springfield; and • March 12, 10 a.m. to noon, Countryside Center, 6438 Joliet Rd., Countryside.

Following lengthy debate

C-FAR members vote to restructure their organization The Illinois Council on Food and Agricultural Research (CFAR) last week voted to restructure the organization and change how research priorities are determined and research funding is distributed.

C-FAR received no funding from the General Assembly last year and is preparing to close its office, housed at the University of Illinois, C-FAR Chairman Jerry Hicks told solemn members during the annual meeting in Springfield.

“We remain committed to CFAR as an organization,” Hicks said. “We know C-FAR will continue to exist — just not look the same as in the past.”

Illinois Agriculture Director Tom Jennings encouraged CFAR members to search for funding outside of state government, reminding them even entities that received state appropriations haven’t received all their money.

“Change is good, adaptation is good, especially in these trying times,” Jennings said.

Debate centered on proposed changes to the C-FAR board structure. Earlier, the board had approved the recommended changes from a special C-FAR task force, comprised of 15 charter C-FAR member organizations and chaired by John Huston, retired executive

with the National Cattlemen’s Beef Association.

During debate, Alan Puzey, former C-FAR chairman, questioned whether changing the board structure would address C-FAR’s funding problems.

Lyle Roberts, the first C-FAR chairman, noted C-FAR’s struggles. “We have to somehow reinvent ourselves,” he said.

After lengthy debate, C-FAR

voting delegates approved the following changes: • The C-FAR board would increase from seven to 11 members. A corn sector would elect three directors: the soybean sector, two; the pork, beef, and dairy sectors, three; the specialty crops, wheat, and allied industry sectors, two; and Illinois’ largest general farm organization (Illinois Farm Bureau), one.

• Research plans and priorities would be determined by caucuses of the sector groups.

The sectors then would submit their priorities to the C-FAR board for final action.

• Organizations whose members raise or are involved with a variety of crops and livestock may participate in more than one caucus.

• The state’s four universities with agricultural programs and other research entities would be eligible for research funding on a competitive basis, instead of allocating a predetermined percentage to the four universities.

• Of C-FAR funding appropriated to IDOA, the agency may keep $50,000 or half of 1 percent, whichever is less, for costs, and the same amount will be retained for C-FAR board expenses.

• Ninety percent of remaining funding would be used for research priorities as presented by the corn, soybean, and livestock caucuses for board

approval, while 10 percent would be used for priorities from the specialty crop-wheatallied industry caucus.

The next step will be development of bylaws to implement the changes, according to Hicks. Bylaw changes would require two-thirds approval of C-FAR voting members and are expected to be voted on by June. — Kay Shipman

ACTION TEAM MESSAGE

Easter: Time for making tough decisions The University of Illinois, much like the Illinois Council on Food and Agricultural Research (C-FAR), faces difficult decisions due to state budget problems, Robert Easter told C-FAR members in Springfield last week.

“The university must reinvent itself,” said Easter, former dean of the College of Agricultural, Consumer, and Environmental Sciences and now interim chancellor/provost of the Urbana-Champaign campus.

Easter outlined steps rangRobert Easter ing from salary cuts to hiring freezes to tuition increases that the U of I has taken. He estimated student tuition pays 60 percent of the U of I’s operating costs and will be a higher percentage next year as state support continues to decrease.

With students covering more of the university’s budget, “it makes it difficult to have conversations about Extension and the Agricultural Experiment Station that ought to be supported by taxpayers,” Easter explained.

“It has to be a time of difficult decisions that have to be made,” he said.

Easter continued with several rhetorical questions: • What programs are critical to Illinois’ food and agricultural industries, and how will they be supported?

• Can the state maintain four independent university agricultural programs or should they be coordinated more in the future?

• What role will community colleges play in students’ education?

“I am confident in the U of I and the future of agriculture,” Easter concluded. “We have to come together for our future.” — Kay Shipman

Stephanie Pavolka, an Illinois Department of Transportation employee, adjusts one of the posters placed in a kiosk at the Route 66/Abe Lincoln rest stop on Interstate 55 at Funks Grove in McLean County.

The posters, the idea of the Illinois Farm Bureau Education Action Team, provide ag facts and information about agriculture that can be found along the Route 66 corridor (I-55 virtually parallels the old route). The posters will be prominently displayed indefinitely for viewing by travelers going either north or south — the rest stop is the only one in Illinois that can be accessed from either direction.

(Photo by Ken Kashian)

FarmWeek Page 4 Monday, February 22, 2010

ETHANOL

State of the industry: Ethanol regaining feet

BY MARTIN ROSS FarmWeek

A year or so ago, “the very foundation of this (ethanol) industry and the economy were shaking,” national Renewable Fuels Association (RFA) President Bob Dinneen recalls.

But the industry has weathered “the worst economic climate since the Depression,” and emerged “stronger and a bit leaner,” he reported during last week’s National Ethanol Conference in Orlando.

In fact, the industry continued to expand in 2009, bringing 1.5 billion gallons of new capacity on line and, according to Dinneen, “preparing to fully meet the demands of the (federal) renewable fuels standard (RFS).”

According to U.S. Department of Energy projections, production likely will rise from 2009’s average 700,000 barrels per day in 2009 to an average 800,000 daily barrels in 2010 and 850,000 barrels in 2011.”

Evidence of recovery can be seen across Illinois. The

former Williams Energy ethanol plant in Pekin has repowered as Illinois Corn Processing LLC, a partnership between MGP Ingredients and SEACOR Energy. Industry giant Abengoa is moving ahead with a Southern Illinois corn ethanol plant.

And Gene Griffith, whose Patriot Renewable Fuels launched operations in Annawan on the brink of the “Great Recession,” has come out the other end with no regrets.

“We started production Sept. 1, 2008,” Patriot’s CEO told Far mWeek at

the Orlando meeting.

“Of course, there’s been a lot of volatility in both

FarmWeekNow.com Listen to Bob Dinneen’s comments on the improving picture for ethanol and other renewable fuels at FarmWeekNow.com.

the corn and ethanol prices, but that kind of stabilized toward the end of 2009.

The first half was still somewhat weak, but the last half of 2009 was very good.

“I think most of the plants that are producing are finding it’s very acceptable today. There are some

margins to be had.”

U.S. retailer-refiner Murphy Oil is partnering in a North Dakota biofuels plant — Murphy Senior VP Tom McKinlay sees ethanol as “low-cost gasoline,” noting increased difficulty in securing “accumulations of oil.”

McKinlay anticipates a significant rally in oil prices as the global economy recovers and energy demand again surges.

As a result, he said, ethanol should become “a relatively better value,” and barring removal of the ethanol excise tax credit, “the future looks good for

corn ethanol.”

With an 88-million-gallon-per-year corn ethanol plant primed for launch at Granite City and “a very aggressive cellulosic program” under way in Nebraska and Kansas, Abengoa Bioenergy Executive Vice President Christopher Standlee is enthusiastic about growth in both areas.

“We’re strong believers in the need for both the grainbased starch ethanol and cellulosic,” Standlee told FarmWeek. “It takes both in order to really significantly reduce imported fuels.”

‘This can’t happen to us’

Biodiesel credit delay worries ethanol industry Given the state of the biodiesel industry after less than two months after the blender’s credit expired, Bob Dinneen sees extension of the federal ethanol tax credit as perhaps “the most important issue Washington needs to focus on this year.”

The 45-cent-per-gallon volumetric ethanol excise tax

GM committed to E85 if infrastructure grows Following its recent bankruptcy, General Motors (GM) is “a new company” under new management, according to Tom Stephens, GM’s vice chairman for global product operations.

What hasn’t changed, he said, is GM’s “strong commitment” to ethanol, especially in the form of E85-capable “flex-fuel” vehicles (FFVs). Stephens nonetheless stressed the ethanol industry must offer some commitments of its own.

Biofuels represent “the best near-term solution to reduce our dependence on petroleum, to expand our nation’s energy portfolio, and to reduce the carbon footprint of driving,” Stephens said.

With world energy demand increasing by 2 percent per year and 96 percent of today’s vehicles dependent on petroleum, he warned oil consumption is rapidly outstripping supply.

“For the auto industry, this means we don’t have a sustainable energy model,” Stephens told National Ethanol Conference participants. “We need a solution to reduce greenhouse gases as well as our dependence on oil.

“Just to satisfy growth and replace reserves, we’ll need to find the equivalent of six Saudi Arabias by 2030. At GM, we think some of those Saudi Arabias might be sitting here in this room.”

Stephens said GM is on track to exceed its pledge to make more than half of its production flex-fuel-capable by 2012.

GM plans soon to unveil E85-capable direct-injected power trains in some of its higher-volume models such as the Chevy Equinox and GMC Terrain, with turbocharged flex-fuel Buick Regals and Chevrolet Cruzes to follow.

The anticipated Chevrolet Volt will operate on a combination of electricity and ethanol blends up to E85.

But long-term developments will materialize only with “steady growth in the fueling station infrastructure,” Stephens said.

He noted 90 percent of registered FFVs “don’t have an E85 station in their ZIP code,” and with GM spending some $100 million per year on new flex-fuel capabilities, “We can’t afford to leave that capital stranded.”

Stephens was wary of efforts to introduce mid-level blends such as E15 (15 percent ethanol) to the market. He said it is critical for federal officials to completely review vehicle test data before making a decision.

“If ethanol gets a bad name, it’ll be bad for everyone,” he said. “This is too important to get it wrong. We need the decisions on mid-level blends to be based on sound science. If the science supports them, so will we.” — Martin Ross

credit (VEETC) expires at year’s end, but given uncertainty about a number of key federal tax provisions — including the biodiesel blender’s credit that expired in January — the national Renewable Fuels Association (RFA) president argued the need to lobby Congress to quickly renew the incentive that essentially “built this industry.”

Last year, the ethanol industry added some $53 billion to the U.S. gross domestic product, contributed $16 billion in U.S. household income through purchase of goods and services, and accounted for 400,000 “good-paying jobs across the country,” he related.

“We’ve all learned a sobering lesson over the past couple of months as Congress failed to extend the credit for biodiesel,” Dinneen told FarmWeek at the annual National Ethanol Conference in Orlando.

“You’ve seen plants shutting down across the country, and that industry’s been devastated.

“That cannot happen to us.

This industry’s too important — we’re providing too many

jobs, we’re creating too many rural economic investment opportunities.”

Senate Majority Leader Harry Reid (D-Nevada) drew fire this month when he dropped extension of the $1per-gallon biodiesel credit from jobs legislation.

Last week in Orlando, Iowa Renewable Fuels Association Executive Director Monte Shaw reported most Iowa biodiesel plants have shut down pending extension of the credit. “Production personnel were laid off in January, maintenance personnel were laid off in February, and every day pushes us closer to bankruptcy,” he said.

According to John Urbanchuk, technical director with the natural resources consulting firm ENTRIX, the ethanol industry generates $8.4 billion in annual federal revenues, in part by reducing need for corn subsidies, while ethanol tax credits cost the U.S. Treasury only $5 billion.

VEETC elimination would “sharply lower” ethanol prices, weakening the industry, curtailing production, opening the door to cheap Brazilian ethanol, and endangering

investment in next-generation cellulosic ethanol, industry spokesmen maintain.

National Association of Convenience Stores Vice President John Eichberger advised ethanol producers that “if we can’t blend ethanol without a tax credit, we probably won’t blend ethanol.”

National Corn Growers Association policy specialist Jon Doggett believes the credit ultimately will be extended, “but it’s going to be a hard, hard, hard lift.”

Nathanael Greene, renewable energy policy director with the Natural Resources Defense Council, believes “simple extension” will be a challenge, and suggests redirecting the credit to reward biofuels producers who make significant environmental/sustainability gains.

But given voter “frustration” with the current Congress, Dinneen said incumbent lawmakers “are going to need to get their act together and get some things to the president’s desk.”

“And whatever’s moving, we’re going to make sure it includes the incentive,” Dinneen pledged. — Martin Ross

Blender pump answer to nudging the ‘wall’?

As ethanol producers and purveyors debate the best way to bust the biofuels blend wall, a third option could allow consumers to take a few whacks of their own.

A potential accommodation for “E15” and “E85” advocates alike is the “blender pump,” which taps into both an unleaded gasoline and an E85 tank (E85 being the highest federally approved blend), enabling motorists to effectively dial up their own ethanol blend.

In fact, the Renewable Fuels Association (RFA) and the National Corn Growers Associ-

ation are spearheading a “Blend Your Own” (BYO) campaign focused on retailers installing 5,000 blender pumps nationwide over the next two years.

A recent DOE National Renewable Energy Laboratory survey of 120 E85-equipped stations pegs the cost of installing a new E85 pump and tank at $71,000, with stations paying an average $21,000 for an E85 dispenser with an existing converted tank.

Karl Doenges, whose Protec Fuel Management helps East Coast retailers with all aspects of logistics, suggests smaller

stations can divert a mid-grade gasoline, diesel, or even kerosene tank for E85 and convert the pump for blender use, often for $30,000 or less.

RFA President Bob Dinneen noted the popularity of blender pumps in the Upper Plains, Florida, and other areas with expanded flex-fuel vehicle sales.

“Gasoline marketers are recognizing that this ultimately is about consumer choice. Providing that flexibility to their customers makes sense for them as well as their customers,” said Dinneen. — Martin Ross

FarmWeek Page 5 Monday, February 22, 2010

IFB IN ACTION

State of the industry: Nelson addresses issues Illinois Farm Bureau President Philip Nelson has spent much of this winter addressing a growing list of economic, regulatory, and social issues confronting the state’s producers.

Nelson outlined a number of key 2010 issues for FarmWeek.

FarmWeek: What are the key policy and market issues facing Illinois producers this year?

Nelson: It is evident from my meetings with county Farm Bureau presidents throughout the state that profitability is going to be one of the biggest challenges for producers. That deals not only with the input side, but with the prices they receive for their commodities, whether it’s a corn or soybean producer or a cattle or pork producer.

I think marketing is going to be a key initiative we need to look at as an organization to make sure producers know how to manage their risk, whether from an input side or from the marketing of the commodities that they raise.

There’s also a general, overall concern about regulations coming down the pike.

FW: How serious is the increasingly stringent regulatory environment for agriculture, particularly given the debate over climate/capand-trade legislation and some of the Environmental Protection Agency’s (EPA) proposed greenhouse gas regulations.

Nelson: I made the comment recently that we are up against probably some of the toughest regulatory challenges we’ve seen as an industry or as an organization.

Cap and trade — the climate bill — brought this to light given the jurisdiction EPA may or may not have in the regulation of greenhouse gases. That’s issue No. 1.

We may or may not have to have NPDES (National Pollutant Discharge Elimination System) permits or producers may or may not be charged for point source pollution coming out of a spray boom. I think that’s a huge issue.

On the livestock side, the implementation of CAFO (concentrated animal feeding operation) regulations continues to be a challenge for our livestock producers in making sure they are in compliance.

FW: What are our priorities and goals regarding improvements to the rural and ag transportation infrastructure?

Nelson: Infrastructure is a top priority of this organization and has been for the last three years, as we’ve tried to make sure our producers have access to 80,000-pound (weight limit) roads. One

of the success stories of the last General Assembly was getting that passed, and now implementation is taking place.

Illinois is unique from a transportation perspective. We are in the center of the country, we ship commodities to both coasts, we have one of the most unique intermodal facilities structures in the country, where we are able to use container facilities.

It’s in the best interest of our producers and for Illinois to try to secure some funding to make sure we modernize these improvements to keep our producers and our industry at the cutting edge as it relates to transportation issues.

FW: How important is the president’s stated commitment to advancing the U.S. trade agenda through the World Trade Organization (WTO), through bilateral trade agreements, and through trade compliance?

Nelson: We are very concerned that as an organization, as an industry, we need to push the envelope on trade. We need more access for our products abroad. We would like to see a successful completion to the Doha Round of talks through the WTO. Those are steps in the right direction, but we have to get Congress to develop more of an appetite for trade than we’ve had over the last couple of years.

I think Illinois Farm Bureau and the American Farm Bureau Federation can lead the charge in showing what trade does not only in trying to move agricultural commodities, but also in creating the jobs that equate to exports of those particular commodities.

FW: What can be done to improve agricultural trade in the U.S.?

Nelson: As the newly appointed chair of the American Farm Bureau’s Trade Advisory Committee, there are three priorities I will bring to the table at our first meeting coming up shortly.

No. 1, we need trade promotion authority. If we are going to be effective at trying to get trade agreements passed and ratified, we’ve got to have that in the pocket of the president so he can get those treaties negotiated and Congress has to vote those up or down without tagging on various other elements to them. We think it is critical.

As part of that, we want to lead the charge of trying to put together a trade

coalition that supports our same principles and ideals to get this passed.

We need to get more aggressive and engaged in the whole trading arena to pass the Doha Round. Last, but not least, I think we need to make sure Congress acts expeditiously on bilateral trade agreements that are lying on the shelf.

We’ve got a fairly ambitious agenda ahead of us in the whole aspect of trade.

FW: What unfinished business does Congress need to address in this midterm election year?

Nelson: No. 1 is the biodiesel tax credit. We have a number of biodiesel plants that are shutting down because those tax incentives went away year-end.

But probably the bigger issue is the estate tax.

The “death tax” was not taken care of before Congress adjourned at yearend. Our organization has always pushed for total repeal of this tax, but in the absence of total repeal, we want to get the highest exemption level we can possibly get.

We want to have it indexed to inflation and have a lower tax rate than what came out of the House version at year-end.

FW: How can the state and federal governments find budget and fiscal balance without overburdening taxpayers or sacrificing crucial ag programs?

Nelson: At the state level, we are facing a $13 billion shortfall.

We’ve got to figure out a way to either pare back state government or look at other sources of revenue to try to address the problem.

At the federal level, you just can’t keep adding programs.

When the country is in debt by almost $12 trillion, we need to have some fiscal accountability, and that starts with sending a clear signal to the people who are elected to be more responsible as we look at these programs.

We need to send a strong signal to Congress that we just can’t keep spending money at the rate we are.

FW: How can the State of Illinois maintain quality education levels?

Nelson: Education is a big concern of mine and this organization. Serving on a school board for a dozen years, I know the need for resources to fund our educational system, whether at the local level or at the state level.

The state is in arrears to one of our

largest universities for more than $400 million dollars in state payments.

You’re starting to see some paring back of programs that have been carried out for a long time.

It’s difficult, but we are going to have to go through that process until we come up with more revenue and resources or look at different funding sources entirely to try to carry out these programs.

FW: How can we best deal with these increasing public threats to animal agriculture?

Nelson: As a livestock producer, my blood boils when I see some of these attacks, whether you turn Nightline on and see the dairy industry under assault or turn on Katie Couric and you look at the information put out about antibiotic use. Then you look at the Humane Society of the U.S., which attacks the regulatory framework of how we raise livestock, whether it’s laying hens or hogs in gestating stalls.

We have come to the crossroads on all these issues, and we’ve got to be more vocal, more involved in trying to get a positive image of what we are doing out there. We have to make sure it’s factual, so people understand what we do in modern-day production agriculture.

Illinois Farm Bureau has taken a leadership role in trying to get that message across. Working with all of the other commodity groups, we are developing an image campaign to see what’s on the minds of consumers and what messages resonate with them. It is something we are going to spend quite a bit of time and effort on.

FW: What do we need to do to create an improved business climate in Illinois?

Nelson: For two years, we’ve been working through the Vision project — the Vision for Illinois Agriculture — and out of that has come the Smart Agenda, which more specifically identifies how we accomplish various goals and objectives of an overall strategic plan. One of those happens to be identifying how we actually portray a better business climate for this state.

One aspect of improving the business climate is to improve the permitting process. There is something wrong when it takes a business 400-plus days to obtain all the permits to open a business in Illinois, when we have neighbors to the east and west of us that can do that in between 125 and 150 days.

Interview conducted by Martin Ross, agricultural affairs editor with FarmWeek. Photos by Ken Kashian.

FarmWeek Page 6 Monday, February 22, 2010

COMMODITIES

GFAI president: Industry faces numerous issues

BY DANIEL GRANT FarmWeek

Field preparations and planting may be heavy on the minds of farmers with spring just four weeks away.

But farmers should not neglect the crop they harvested just a few months ago if it is still in the bin, according to Bruce Bastert, general manager of Ludlow Co-op Elevator.

Bruce Bastert Bastert is the newly elected president of the Grain and Feed Association of Illinois (GFAI). He discussed grain quality concerns and other issues last week at GFAI’s 117th annual convention and trade show in Springfield.

“This whole crop (left in on-farm storage) is a land mine waiting to go off,” Bastert told FarmWeek. “We keep stressing that farmers

need to check their bins frequently and spend the money to aerate them.”

Otherwise, the crop’s quality could get worse this spring.

“Mold is a vicious cycle,” said Carrie Maune, president of Trilogy Analytical Laboratories, who tests grain for mycotoxins. “It produces moisture, which attracts more mold.”

Farmers, therefore, should keep the moisture level in their stored grain below 14 percent, they should watch for insect damage, limit broken kernels, and consider reconditioning grain if quality is an issue, said Maune, a featured speaker at the GFAI convention.

Grain quality is one of the most pressing near-term concerns for elevator managers, but a number of other issues could challenge the industry down the road, according to Bastert.

Employee insurance costs, tax rates, and proposed capand-trade legislation are among the top issues facing

U of I budget woes cut weather news The public broadcasting radio and television stations at the University of Illinois have eliminated their weather news department among nine jobs cut last week.

With losses in state funding and an uncertain budget outlook, Illinois Public Media at the U of I will stop all on-air weather forecasts on April 1.

Meteorologist Ed Kieser and weather producer Mike Sola, who have been part of ag outlook programs, are among the impacted employees.

During severe weather, announcers will keep listeners informed about problems and share information from the National Weather Service.

the grain industry at the national level.

“Climate change and capand-trade (legislation) are potential game-changers,” he said. “It could be a huge cost factor.”

Proposed cap-and-trade legislation also is making it difficult for elevator managers to prepare for the future, according to Bastert.

“How do you try to get (facilities) ready to go from handling 200-bushel to 300bushel corn when, on the other side, it may be more profitable to plant trees?” he questioned.

Some in the grain industry also are running into issues securing large enough natural gas supplies to power new, larger grain dryers.

“We’re running into all sorts of infrastructure issues,” Bastert said.

At the state level, Bastert said the feed industry is preparing to absorb some fee increases. But he does not expect any new fees to have a major impact on the industry.

More information about GFAI and the state’s grain industry is available online at {www.gfai.org}.

Spring forecast:

Weather again could be an issue at planting The spring weather forecast issued last week by Mike McClellan, founder of Mobile Weather Team in Washington, probably was the last thing farmers wanted to hear.

McClellan predicted spring weather conditions in Illinois could be cool and wet for the third year in a row.

The prediction was based on the fact that El Nino, a warming of a large portion of the Pacific Ocean, last week remained at its peak rather than diminishing as some forecasters predicted, McClellan said during the 117th annual convention of the Grain and Feed Association of Illinois.

“What I think it means is a fairly wet spring, hopefully not as wet as 2008 and 2009, but I think it still will be above normal,” said McClellan. He provides ag-based forecasts along with weather services for professional golf events around the world.

If realized, that forecast will continue an unusual trend.

Illinois in 2008 and 2009 received an average total of 100.8 inches of precipitation, which is 22.4 inches above normal. No other back-to-back years in modern history have been as wet, according to Jim Angel, state climatologist with the Illinois State Water Survey.

Meanwhile, the average temperature last year (51.2 degrees) was nearly a full degree below normal. The average temperature last month (21 degrees) was 3.8 degrees below normal.

“The situation we have is not normal,” McClellan said.

He predicted below-normal temperatures will continue this month and could persist into spring.

“There could be a couple big warm-ups, but they won’t last very long,” he predicted. “Overall, I think temperatures will be below normal in the spring.”

A wet spring could once again put farmers in an extremely tight spot. Fieldwork and even some harvest work were not completed last year due to the wet conditions.

There also are concerns about soil compaction this year based on the sloppy harvest last fall.

“We have some issues we have to deal with this spring,” McClellan said. His weather service is available online at {www.mobileweather.com}. — Daniel Grant

Census to launch in March; census takers being sought The 2010 census is due to launch next month, and government officials are driving home the importance of every person being counted.

Those willing to be employed as census takers also are being sought.

The census, mandated by the Constitution, has been conducted every 10 years since 1790.

Having all persons counted is critical because federal funding going to communities for hospitals, job training centers, schools, bridges and other public works projects, and emergency services is determined in large part on a per-capita basis.

The census form, to be sent to every residence in the U.S. and Puerto Rico in March, contains 10 questions. The form is to be completed and mailed back in a postage-paid envelope that will be provided.

Those who don’t return the form likely will receive a visit from a census taker who will ask questions from the form.

That’s where the need for census takers

comes into play. Those individuals hired as census takers will work up to 40 hours per week in a temporary, part-time job with hourly pay, flexible hours, and mileage reimbursement for any use of a personal vehicle. Census takers will work in their own communities.

More information about the job openings, including a practice test for potential census takers, is available at: {www.2010censusjobs.gov} or by calling the toll-free jobs line, 1-866-861-2010.

CME Group launches DDGs contracts The Chicago-based CME Group last week announced the launch of distillers dried grains (DDGs) commodity futures contracts.

The contracts, which are subject to the rules and regulations of the Chicago Board of Trade, are scheduled to begin trading April 26.

DDGs, a byproduct of corn ethanol production, is used as livestock feed. The new contracts can be used by livestock and ethanol producers, commercial corn interests, and others to lock in the price of feed or hedge ethanol refin-

ing margins in combination with corn, natural gas, and ethanol futures, according to the CME Group.

“This product will enable our feed customers to directly manage price risk of feed inputs that they haven’t been able to before,” said Tim Andriesen, CME Group managing director for commodities.

Each contract is equivalent to 100 short tons of DDGs. For more information, visit the website {www.cmegroup.com/commodities}.

FarmWeek Page 7 Monday, February 22, 2010

SPECIALTY GROWERS

Survey to gauge grower interests, needs

BY KAY SHIPMAN FarmWeek

A survey of Illinois specialty growers seeks to assess challenges they face in marketing their fruits and vegetables and their interest in selling to wholesale markets.

Familyfarmed.org, an Oak Park non-profit organization that supports locally grown food, is conducting the survey through March 19 with funding from the Illinois Department of Agriculture (IDOA) through a specialty crop block grant.

“We have a lot of buyers in Chicago who want Illinoisgrown food and are having a hard time finding it,” Jim Slama, president of Familyfarmed, told FarmWeek.

“Let’s identify those barriers to Illinois fruit and vegetable growers and what growers think they need to help them overcome those barriers.”

Buyers wanting Illinois products range from distributors and large-scale supermarkets to restaurants and school districts, according to Slama.

To better understand

Illinois receives $128 million for rail projects Gov. Pat Quinn announced last week Illinois will receive three federal stimulus grants totaling $128 million. Illinois received the most transportation stimulus funding in the Midwest, according to Quinn.

The Illinois Department of Transportation (IDOT), along with the Chicago Region Environmental and Transportation Efficiency (CREATE) Program partners, will receive $100 million.

The grant funding will be directed toward six projects, ranging from a rail line and viaduct improvement to a highway-rail grade separation, that will benefit 13 Northeastern Illinois communities.

The Tri-City Port District in Granite City will receive $6 million, and the Town of Normal will receive $22 million for a multi-modal transportation facility.

Across the nation, 50 projects were awarded funding.

“These federal funds will have a tremendous impact on Illinois’ economy by creating more jobs,” said Illinois Transportation Secretary Gary Hannig.

growers’ challenges, the survey asks respondents about such issues as marketing, delivery, food safety, and processing.

In addition to grower challenges, the survey also asks questions about future production and interest in development of a pack house to compile individual growers’ products for wholesale marketing and distribution.

“We’re trying to identify what kind of production (exists currently) and what kind we might have in two to five years,” Slama explained.

“Do we need a pack house for Illinois fruits and vegetables?” he asked. “We’re just

looking at the feasibility (of such a facility).”

Slama said Familyfarmed doesn’t want to compete with the private sector, but wants to learn if a pack house would be feasible and to encourage one if the opportunity exists and the need is there.

Familyfarmed is seeking input from growers across the state — no matter how far they may be from Chicago, according to Slama.

“Southern Illinois apples, peaches, and grapes could be easily brought into Chicago markets,” he noted.

Slama estimated a grower would need about 10 minutes

to complete a survey either in a paper form or online at {www.familyfarmed.org/RT GSurvey}. Members of the Illinois Specialty Grower’s Association will receive a survey in the mail. Slama specu-

lated survey results may be available by summer.

“We want to do it right, and we want to engage farmers and farm leadership, especially specialty growers,” Slama said.

FarmWeek Page 8 Monday, February 22, 2010

AG EDUCATION

County FB Young Leaders teach Chicago area students about ag

BY REBECCA PERRY

Young Leaders recently traveled to Palos Heights to help students in their adopted classroom, Mrs. Donna Plocharczyk’s, fourth grade class at St. Alexander School, learn about agriculture.

Two lessons were taught to 32 students.

The first showed the students how to follow corn from field to table.

The students were able to make chains out of photos showing the different stops corn made before it ended up in a box of cereal.

The second lesson was about technology used in agriculture.

The students were able to learn about the different computer and electronic technology that farmers use to plant, care for, and har vest crops.

Young Leaders in attendance included: Anson Rutger, Matt Lynch, Wayne and Lauren Doelling, Andrew and Heather Spray, and Caleb and Kimberly May.

Edwards County Young Leader Heather Spray helps students in Palos Heights put their corn chains together. The students made chains out of photos showing the different stops corn made before it ended up in a box of cereal. (Photo courtesy of Edwards County Farm Bureau)

Rebecca Perr y is manager of Edwards County Farm Bureau.

She may be reached at 618445-2113.

Members of the Edwards County Farm Bureau

WIU Ag Mech Club’s Farm Expo Saturday Western Illinois University (WIU) Ag Mech Club’s 40th annual Farm Expo will run Saturday from 9 a.m. to 5 p.m. and continue Sunday from 10 a.m. to 4 p.m. in Western Hall on the Macomb campus.

The two-day event, run by students, will feature emerging ag technology, tractors and machinery, livestock equipment and supplies, crop supplies, as well as information about ag sales and service, conservation methods, ag structures and much more.

McDonough District Hospital will offer blood-glucose screening, sun-damage screening, and have cancer support services information.

Darren Frye, chief executive officer of Water Street Solutions, will give the keynote address at 10:30 a.m. Saturday.

A farm toy and craft show will be held both days of the Expo in the upper concourse of Western Hall.

Admission is free, and free parking will be available in WIU’s Q-Lot located on the east side of Western Hall.

For more information, contact WIU’s School of Agriculture at 309-298-1080, the Ag Mech Club office at 309-298-1231, email farmexpo@wiufarmexpo.com, or go online to {www.wiufarmexpo.com}.

Ag scholarship digest Illinois Meat Goat Producers (IMGP) Scholarship — IMGP will award a $500 scholarship to any active IMGP member or immediate family member of an active IMGP member who has been involved in raising, breeding, or showing goats.

The application deadline is May 1.

Details and a scholarship application are available online at {www.ilmeatgoat.org/news.html} or by calling the IMGP at 217898-9358.

LUNCH FOR LAWMAKER

State Rep. Michael Zalewski (D-Chicago), left, discusses foods grown in Mason County that were presented to him by Mason County Farm Bureau board member Adam Shissler, center, and President Ron Armbrust. The county Farm Bureau leaders discussed the state budget and other issues recently with their newly “adopted legislator.” Accompanying them were Dee Dee Gellerman, Mason County Farm Bureau manager; Bona Heinsohn, Cook County Farm Bureau director of public policy; and Christina Nourie, Illinois Farm Bureau northeast legislative coordinator. Zalewski and his family plan to visit Mason County this summer, and he would like to host a district tour for his adopted farmers later this year. (Photo by Christina Nourie)

FarmWeek Page 9 Monday, February 22, 2010

FROM THE COUNTIES

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HAMPAIGN — A Viewpoint meeting will be at 11:30 a.m. Thursday at the Philo Tavern, Philo. Lunch will be served. Topics to be discussed will be biofuels, climate change, and an update on the proposed 1 percent sales tax for education. Call the Farm Bureau office at 217352-5235 for information.

OOK — Farm Bureau is offering professional income tax preparation by the Illinois Agricultural Auditing Association. Available locations are at the Farm Bureau office and Country Financial offices in Schaumburg and South Holland. Call Peggy at the Farm Bureau office at 708354-3276 for an appointment or more information.

• Farm Bureau has Chicago Wolves hockey discounted tickets available for the March 7 and April 10 games. Call the member service center at 708354-3276 for more information.

DGAR — Randy Allen, RWA Financial Services, Austin, Texas, will be the speaker at a market outlook seminar at 7:30 a.m. Monday, March 22, at the Edgar County Bank, Paris. Call the Farm Bureau office at 217-465-8511 for reservations or more information.

ULTON — Sheriff Jeff Standard will defend his title against Coroner Steven Hines in the Fulton County Farm Bureau’s Food CheckOut Week cart race at 11 a.m.

Friday at the Lewistown County Market. Following the race, groceries will be delivered to the Lewistown Association of Churches Food Pantry.

• The Young Farmer Committee will hold a food drive from 10 a.m. to 2 p.m. Saturday at the Lewistown County Market. All non-perishable food items will be donated to the Lewistown Association of Churches Food Pantry.

• Jim Fraley, Illinois Farm Bureau livestock program director, will be the speaker at a policy development and issues meeting at 6:30 p.m.

Tuesday, March 2, at the Bernadotte Café. Dinner will be served. Call the Farm Bureau office at 547-3011 by Thursday for reservations or more information.

• The Young Farmer Committee will sponsor a hunter safety course from 8 a.m. to 1 p.m. Saturday, March 13, and from noon to 5 p.m. Sunday, March 14, at the Farm Bureau office. Both sessions must be attended to obtain certification. Call the Farm Bureau office at 547-3011 by Wednesday, March 10, for reservations or more information.

ENRY — The Henry County Farm Bureau

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Foundation has five $1,000 scholarships available. It will also administer five $2,475 Wilbert and Carol Keppy Foundation scholarships.

Applications are available from high school guidance counselors, agriculture instructors, the Farm Bureau office, or online at {www.henrycofarmbureau.org}. Deadline to return applications is March 1.

Call the Farm Bureau office at 309-937-2411 for more information.

• Young Leaders will sponsor a recruitment night at 6:30 p.m. Saturday at the Milan Lanes. Members who are 1835 years of age may attend.

Call the Farm Bureau office for more information.

• Farm Bureau will sponsor an On the Road seminar at 7 p.m. Tuesday, March 2, at the Farm Bureau office. Trucking laws will be discussed. Call the Farm Bureau office at 309-9372411 for reservations or more information.

ANKAKEE — The annual meeting will be at 5:30 p.m. Thursday at the Kankakee Elks Lodge. Dave Magers, Country Financial chief financial officer, will be the speaker. Cost is $10 for members and $30 for nonmembers. Call the Farm Bureau office at 815-932-7471 for tickets or more information.

ENDALL — Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker at an On the Road seminar at 1:30 p.m. Friday, March 12, at the Farm Bureau auditorium.

Topics will include the new entry audit and U.S. Department of Transportation numbers. Call the Farm Bureau office at 630-553-7403 for reservations or more information.

• A truck inspection day will be from 8 a.m. to 2 p.m. Thursday, March 25, at the GRAINCO FS plant, Rt. 47, south of Yorkville. State Troopers Mark Odentha and Steve Harris will be the inspectors.

• There are four $1,000 Kendall County Farm Bureau Foundation scholarships available for Kane County Farm Bureau members; a $1,000 Matlock Memorial Scholarship for a Kane County Farm Bureau member; and four $2,500 Dobbin Family scholarships for Kendall and LaSalle County high school or college students pursuing a degree in agriculture. Deadline to return applications is July 1. Call the Farm Bureau office at 630-5537403 for an application or more information.

• The Prime Timers will sponsor a bus trip Thursday, April 8, to Circa 21 Dinner Playhouse in the Quad Cities to

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see “Church Basement Ladies 2.” Cost is $75. The bus will leave the Farm Bureau office at 9:30 a.m. Call the Farm Bureau office at 630-553-7403 for reservations or more information.

ASALLE — The LaSalle County Farm Bureau Foundation has two $1,000 scholarships available for students who will be or are currently enrolled in an agrelated field of study. Deadline to return applications is 4:30 p.m. Friday, March 26. Call the Farm Bureau office at 815-4330371 or go online to {www.lasallecfb.org} for more information.

EE — During Food Check-Out Week (Feb. 21-27), listen to WLLT 107.7 radio to win a $40 gift certificate to Oliver’s Food Pride.

• Farm Bureau will sponsor a Rural Health Fair from 8 a.m. to 1 p.m. Saturday at the Lee County 4-H Center Auditorium, Amboy. Blood pressure, body fat, total cholesterol, and glucose screenings are available for $15 per test. For best results, fast eight to 12 hours before the testing. Stroke Detection Plus will provide stroke, abdominal aortic aneurism, peripheral arterial disease, and osteoporosis screenings. Farm Bureau members’ cost for the four screenings is $90. Call Stroke Detection Plus at 877-732-8258 for an appointment. Darrin Vits, optometrist, will have several vision demonstrations.

Other vendors include Lee County Health Department, Gluten Free Support Group, and Ed Morris, Shaklee distributor. Call the Farm Bureau office at 815-857-3531 for more information.

ACOUPIN — Dale Durchholz, AgriVisor senior grain market analyst, will be the speaker at the spring outlook meeting at 6 p.m.

Wednesday, March 10, at the Farm Bureau office. Dinner will be served. Maxi-Yield Crop consultants and a Country Financial crop insurance specialist will give presentations. Cost for non-members is $10, with no charge for Farm Bureau members. Call the Farm Bureau office at 217-8542571 by Friday, March 5, for

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Auction Calendar Tues., Feb. 23. 7 p.m. 167.5 Ac. DeWitt Co. C. Ellsworth “Brownie” Brown Estate and Janice E. Parker, BEASON, IL. White Auction Service.

Tues., Feb. 23. 10 a.m. 82.53 Ac. McDonough Co. Farmland.

Constance Purdum, MACOMB, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Wed., Feb. 24. 10 a.m. Lg. Absolute Farm Auction. David Ruebush, SCIOTA, IL. Sullivan Auctioneers. www.sulllivanauctioneers.com Wed., Feb. 24. 10 a.m. 322 Ac. Effingham Co. Carl Curtis, EFFINGHAM, IL. Stanfield Auction and Pierce Farm Mgmt.

reservations or more information.

• The Macoupin County Agriculture Education Foundation has scholarships available for students who will continue their education in an ag-related field. Deadline to return applications is March 19. Call the Farm Bureau office at 217-8542571 for an application or more information.

CDONOUGH — Rob Huston, AgriVisor LLC, will be the speaker at a marketing outlook meeting at 6:30 p.m. Monday (today) at the Farm Bureau office. Call the Farm Bureau office for more information.

ONROE — The annual meeting will be at 6 p.m. Saturday, March 6, at St. Mary’s Parish Center, Valmeyer. A silent auction will be held to benefit the Monroe County Farm Bureau Foundation. The Sting Connections will provide the entertainment.

Tickets are $9. Deadline to purchase tickets is Wednesday.

Call the Farm Bureau office at 618-939-6197 for more information.

EORIA — Joe Varda, Mid-Illini Educational Consultants, will instruct a commercial drivers license training course Wednesday, March 10, at the Farm Bureau office. Cost is $45 for members and $55 for non-members.

Call the Farm Bureau office at 686-7070 for reservations or more information.

• Doug Yoder, Illinois Farm Bureau senior director of marketing, will be the speaker at a crop insurance meeting at 9 a.m. Thursday, March 11, at the Farm Bureau office. Call the Farm Bureau office for reservations or more information.

CHUYLER — Farm Bureau will celebrate Food Check-Out Day from 10 a.m. to 2 p.m. Friday at the Rushville County Market. This is the day the average person has earned enough to pay for groceries for the year. A Farm Bureau recyclable grocery bag will be given to customers. Six $21 gift certificates, the amount a farmer receives out of every $100 spent on groceries, will be given away.

TARK — Farm Bureau and the State Bank of

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Thurs., Feb. 25. Sangamon Co. Farmland. www.soycapitalag.com Fri., Feb. 26. 9 a.m. Grundy Consignment Machinery Auction. MORRIS, IL. Richard A. Olson and Associates Inc. www.richardaolson.com Fri., Feb. 26. 11 a.m. Pike Co. Land Auction. David Foreman, PITTSFIELD, IL. Curless Auction. www.curlessauction.com Fri., Feb. 26. 10 a.m. Farm machinery and misc. William (Bill) Leff Estate, ALTONA, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Sat., Feb. 27. 10 a.m.

Consignment Auction. ULLIN, IL. Joe Ollis Auction Service.

Toulon will sponsor an ag outlook breakfast meeting at 8 a.m. Thursday, March 11, at the Bistro, Toulon. Larry Acker, 3F Forecasts, and a USDA Rural Development area specialist, will be the speakers. Call the Farm Bureau office at 309-2867481 by Friday, March 5, for reservations or more information.

ERMILION — Bill Mulvaney, Armstrong Township High School superintendent, will be the speaker at a meeting at 8 a.m. Friday at the Farm Bureau office. He will discuss the state of school funding in Vermilion County.

Call the Farm Bureau office for more information.

• Farm Bureau members will celebrate Food Check-Out Week from 10 a.m. to noon Friday by bagging groceries and visiting with consumers at both Danville County Market stores.

• Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development, will be the speaker at the Viewpoint meeting at 9:30 a.m. Tuesday, March 2, at the Farm Bureau office. He will discussed issues such as health care and cap and trade.

Lunch will be served. Call the Farm Bureau office for more information.

• Doug Yoder, Illinois Farm Bureau senior director of marketing and affiliate management, will be the speaker at an online interactive “Commodity Challenge” meeting at 7 p.m.

Monday, March 8, at the Farm Bureau office. Members may sign up to participate with prizes awarded to the top participants in the year-long exercise.

OODFORD — A defensive driving course will be at 9 a.m. Tuesday, March 2, at the Farm Bureau office. Call the Farm Bureau office at 309-467-2347 for reservations or more information.

• The annual legislative coffee meeting will be at 9:30 a.m.

Monday, March 8, at the Farm Bureau office. U.S. Rep. Aaron Schock (R-Peoria) and state representatives will attend. Call the Farm Bureau office at 467-2347 for more information.

V

W

www.ollisauction.com Sat., Feb. 27. Consignment Auction. ORCHARDVILLE, IL. Daggs Auction Co . Sat., Feb. 27. 10 a.m. Farm machinery.

Ron and Doris Vestel, ROODHOUSE, IL. Roger Strang, Darrell Moore and Dick Samples, Auctioneers. www.auctionzip.com Sat., Feb. 27. 10 a.m. Farm machinery. Jim, Marilea and Jared Hunter, SALEM, IL. DeWitt Auction Co., Inc. www.dewittauciton.com Sat., Feb. 27. 10 a.m. Farm machinery and misc. Dallas Funk, FAYETTEVILLE, IL. Mark Krausz Auction Service. krauszauctions.com

Sat., Feb. 27. Large Late Model Eq. Hunter Farm,.

DeWitt Auction Co., Inc. www.dewittauction.com Tues., Mar. 2. 10 a.m. Farm machinery. Bradd Farms, Inc., Gene Bradd, COOKSVILLE, IL. Bill Kruse, Auctioneer.

Tues., Mar. 2. Christian Co. Farmland. www.soycapitalag.com Wed., Mar. 3. 1 p.m. 357 Ac. Macon and Logan Counties.

Edward Garver, DECATUR, IL. Mike Hall Auction Co. www.mikehallauction.com Wed., Mar. 3. 2 p.m. 175 +/Ac. Stark Co. Ron Elliott, BRADFORD, IL. Rick Rediger and Bob Johnson,

FarmWeek Page 10 Monday, February 22, 2010

PROFITABILITY

What are your options for reducing fuel risk?

BY BRIAN HARTMAN

Right now, the energy markets are typically at the lowest price of the year, and farmers are asking themselves if it’s the right time to buy fuel.

What are your options to manage price volatility?

One solution is to do nothing.

This is a tool for risk management; Brian Hartman however, you can ride the waves higher or lower without knowing exactly where you may land.

Most years the demand for fuel picks up in the spring, and with higher demand comes higher prices.

Additionally, lower emissions fuel is being produced, and that adds costs to refining, resulting in higher costs to the end users.

Another solution is to use “on farm” inventory. Fill your tanks when you think the lowest price is occurring, typically in December, January, and February.

The biggest problem is that most users don’t have enough storage to make it through the season.

Using seasonal patterns for basis and futures markets, my recommendation is to have tanks full or fill them in the

next two to four weeks. If the carry in the futures market continues, it may still be to your advantage to fill up for fall right after planting.

Hopefully, we will be done with planting before July this year!

Finally, forward contracting is another viable option. Customers can lock in fuel costs for spring, summer, or fall usage.

Locking in fuel can do sev-

BY DANIEL GRANT FarmWeek

Illinois wheat growers should know in coming weeks if the acres they planted last fall are going to be fit to make it to harvest.

The state’s farmers last fall planted just 350,000 acres of winter wheat, the lowest total on record, due to the late rowcrop harvest and sloppy soil conditions.

There has been concern expressed by some growers that extremely cold temperatures in December and January may have ruined even more acres due to winterkill.

“Most of it that went in late looks really bad right now,” said Steve Ebelhar, agronomist at the University of Illinois Dixon Springs Agricultural Center, who spoke last week at the Illi-

Feeder pig prices reported to USDA*

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $38.87-$43.50 $40.81 n/a n/a n/a n/a This Week Last Week 20,076 23,589 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $63.19 $62.82 $46.76 $46.49

Change 0.37 0.27

USDA five-state area slaughter cattle price Steers Heifers

This week $90.81 $90.83

accept money in December for a tax expense and then lock in the fuel at a later date.

In my opinion, 50 percent of needs should be locked in by now.

There are many strategies when it comes to reducing risk.

Using futures and options, over-the-counter derivatives, or other methods are all possibilities, but I think the three mentioned above are the most

popular and widely used.

We typically avoid asking customers to go outside their comfort level when doing business, but with the volatility of today’s markets, it might be time to think outside the box when it comes to reducing risk.

Brian Hartman is GROWMARK’s energy analyst. His email address is bhartman@growmark.com.

Wheat growers advised to evaluate stands

M A R K E T FA C T S

Carcass Live

eral things. One of the most important is that it establishes a budget.

Most farmers sell grain in advance to secure outputs, so it only makes sense to secure inputs, too.

Second, in most years, this allows you to take advantage of lower prices. As I have previously mentioned, the lowest prices typically occur in the winter.

Some companies will even

(Thursday’s price) Prv. week Change $87.92 2.89 $87.90 2.93

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 101.62 99.52 2.10

Lamb prices Confirmed lamb and sheep sales This week 354 Last week 396 Last year 495 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $106.50-$115.

Good and choice 1-2: 60-90 lbs., $140.

Slaughter Ewes: Utility and good 1-3: $56-$59. Cull and utility 1-2: $56.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 02-11-10 38.1 15.9 24.2 02-04-10 41.0 17.1 30.9 Last year 48.6 10.6 34.5 Season total 1022.6 581.5 721.6 Previous season total 764.5 756.1 714.6 USDA projected total 1400 825 2000 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

nois Wheat Forum in Mt. Vernon.

The forum was hosted by the Illinois Wheat Association (IWA).

“I’m recommending growers take a look at it once it breaks dormancy, and if the stands are adequate, it probably is worth keeping,” Ebelhar continued.

“Even at 50 percent stand, you still can get 80 percent of yield potential.”

A key to maximizing wheat yields is managing nitrogen more efficiently, particularly in Southern Illinois soils that have less organic matter, the agronomist said.

He encouraged producers to consider splitting nitrogen applications this spring and applying about one-third of the N at green-up to increase tillering activity.

The recommended N rates for the season range from 110

to 140 pounds per acre in Southern Illinois to about 50 pounds in Central and Northern Illinois.

Meanwhile, wheat growers won’t know until later in the season — about the time wheat is heading out — if fusarium head blight (scab) will be as much of a problem as it was last year.

Carl Bradley, U of I Extension plant pathologist, reported the presence of soil-borne pathogens may be greater this season due to the fact that much of the wheat crop was planted into wet soils or stood in standing water last fall.

“Soil-borne pathogens do better in those conditions,” he said. “And it could affect how well the crop overwinters.”

The good news is wheat growers have a better arsenal of products to battle head blight and foliar diseases than

they did even two to three years ago, Bradley said.

He also recommended producers use the disease forecasting tool at {www.wheatscab.psu.edu} and take into account the susceptibility of their varieties to help gauge and prepare for another potential scab outbreak.

Both U of I specialists believe wheat still is beneficial to rotations in Illinois, particularly in the south, and acres likely will bounce back this fall with better planting conditions.

In other news at the Wheat Forum, IWA members reelected John Brink of Richview president. Brian Brown, Hillsboro, was reelected vice president, and Randy Klenke, Worden, was re-elected secretary. John Berg, St. Elmo, was elected treasurer.

Grain dryers hot commodities this winter Farmers and elevator managers interested in purchasing new grain dryers should consider taking action sooner rather than later.

New grain dryers are a hot item this year, and as a result the lead time to make purchases could increase in the months ahead, according to Paul Brooks, GROWMARK project manager for commercial grain systems.

The lead time to purchase a new dryer currently is about 13 to 18 weeks.

Brooks believes it could double in the months ahead if demand for dryers continues at the current pace.

“Some dryer manufacturers and most contractors are pretty well booked for the year,” he said.

“Sales are just unreal,” Brooks told FarmWeek last week during the Grain and Feed Association of Illinois convention in Springfield.

“We’re having a record year in sales for farm accounts.”

Brooks believes many farmers and elevator managers are responding to last fall when a wet crop and limited drying capacity led to harvest delays and long lines at elevators.

“I think we’re seeing a little bit of a culture Paul Brooks change,” Brooks said. “Some of the larger farmers are developing their own systems that can handle 60 percent of their through-put.”

Last fall, elevators’ grain receiving capacity was limited by the capacity of their dryers, Brooks noted.

Therefore, many elevators are purchasing grain dryers that can handle anywhere from 5,000 to 10,000 bushels per hour, and it is not uncommon for farmers to purchase dryers that can handle 2,000 to 3,000 bushels per hour, he said.

One issue some elevators managers have faced is their resident villages do not have the natural gas capacity to accommodate a 10,000bushel-per-hour dryer.

As a result, some managers may be limited in their ability to purchase new dryers, or they may face situations where natural gas is rationed to their facilities.

Meanwhile, a number of country elevators may be limited in their ability to upgrade dryers due to recent investments they have made in storage bins and/or bigger pits.

“Some country elevators are a little strapped,” Brooks said.

If possible, he recommended adding new dryers to current capacity rather than replacing old systems.

“You better be buying now, if you want to buy,” he added. “But make your decision based on the next three to five years and not just what happened last year.” — Daniel Grant

FarmWeek Page 11 Monday, February 22, 2010

PROFITABILITY Corn Strategy

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

Smaller bean acres forecast Even though the acreage forecasts USDA released at its annual Outlook Forum last week aren’t official numbers, they were less than many in the trade expected to see — soybeans in particular.

Widely followed Informa last forecast corn plantings at 89.6 million acres, and soybeans at 77.9 million. Another firm surveyed clients and attendees of a major Iowa farm show and estimated corn plantings would rise only 1 million acres from last year (87.5 million acres), while soybean plantings also would rise 1 million from last year’s 78.5 million acres.

USDA analysts stuck with conventional thinking, forecasting corn plantings would rise to 89 million acres this year. However, they surprised everyone by forecasting a reduction in soybean plantings to 77 million acres.

Joe Glauber, USDA’s chief economist, argued the smaller soybean plantings would occur

Basis charts

because of better returns for corn and rotational considerations. Interestingly, respondents at the Iowa farm show had indicated the shift away from corn to soybeans was in part due to rotational considerations.

Part of the difficult aspect of forecasting acreage this year stems from the decline in winter wheat plantings and Conservation Reser ve Prog ram (CRP) land coming back into production.

Soft red wheat plantings were forecast to decline 2.3 million.

That shouldn’t alter the total acreage mix significantly as that decline is largely in double-crop areas. In essence, the doublecrop beans will be replaced by a single crop.

The 2.3-million-acre decline in hard red wheat plantings and the 2.7 million acres coming out of the CRP program present a different issue. About 3.2 million of the 5 million total are in Kansas, Oklahoma, and Texas. Much of the rest is in the Central and Northern Plains.

These are acres, especially the ones coming in from CRP, that are unlikely to be suitable for corn or soybeans.

U S DA p r e d i c t e d t h e a r e a planted to the eight major crops will decline 2.9 million acres to 247.3 million (see chart above).

If there’s one problem with USDA’s forecasts — it’s the implication that sorghum, barley, and oat acreage will be the same as last year. And these are crops more suited to the areas with smaller hard red wheat and CRP expirations. We wouldn’t be surprised to see those plantings higher than USDA cur rently thinks.

Interestingly, initial USDA forecasts for the size of the new crop have been very close for soybeans, but have tended to underestimate corn output.

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2009 crop: Recent action generally has been a good sign the 20-week cycle has bottomed, but corn needs help from other grains to sustain gains. Increase old-crop sales to 60 percent if May rallies to $3.95. We may boost sales even more; check the Cash Strategist Hotline frequently. You should consider locking up the basis on any bushels to be moved over the next month.

Higher prices should bring increased farmer selling.

2010 crop: If December futures rebound to $4.10, make a 20 percent new-crop sale.

Check the Cash Strategist Hotline daily; we could adjust the target or amount at any time.

Fundamentals: USDA’s forecast that 89 million acres will be planted to corn this year was a little less than some in the trade had been thinking.

Still, the ultimate size of plantings this spring will be highly dependent on weather because of the lack of field preparation and fertilizer application that was done last fall.

Soybean Strategy 2009 crop: Even though soybeans gave ground quickly on outside influences late last week, there are still technical signs the trend is turning more positive. Boost sales to 50 percent if May futures rebound to $9.90. The price or amount could change at any time; check the Cash Strategist Hotline frequently.

2 0 1 0 c r o p : L e ave a n order to make a 20 percent sale if November futures reach $9.59. Check the Cash Strategist Hotline occasionally for changes.

Fundamentals: The USDA planting estimate was less than the trade expected, but it seemed few felt it was a valid number. At the same time, talk of the implications of a large South American crop persist, even though there are indications yields are disappointing in some locations.

Adding to the possibility that a key short-term low has been reached may be the typical pattern of seeing an early “harve s t l ow ” w h e n c r o p s a r e

good, and even with minor problems, South America’s crops will be good ones.

Wheat Strategy 2009 crop: Wheat action has been choppy, with prices mostly between the 20- and 50day moving averages. The market still needs to see the Chicago May contact move above $5.20 to confirm the 20week cycle has bottomed, turning the short-term trend up.

M a ke a 1 0 p e r c e n t s a l e i f Chicago May futures hit $5.46, bringing the total to 90 percent.

2010 crop: Use a rally to $5.65 on Chicago July futures to make an initial 25 percent sale.

Check Cash Strategist Hotline daily as this target could be adjusted at any time.

Fundamentals: Currently, short hedge fund positions are at record-large levels.

If stops on those positions are trig gered at any time in the near ter m, it could cause a rapid run to the upside. However, any short covering rally may not last long with the weak fundamentals still influencing the market.

FarmWeek Page 12 Monday, February 22, 2010

PERSPECTIVES

Get involved to change legislative redistricting • To improve the structure and process for Responding to Illinois citizens’ frustration with boundary determination; both the structure and process used to draw legisla• To involve IFB following its policies; and tive districts, a number of statewide groups have • To take steps to restore some trust, integrity, and been working on how to make the situation better. accountability to our system.

Illinois Farm Bureau has taken a giant step into After study and discussion, the group voted to recthe process with a two-pronged ommend two directions to the IFB board. First, IFB approach: working with the legislashould continue to pursue a legislative amendment to ture and seeking a constitutional address the issue. change through a citizen initiative.

Second, IFB should do a shirtsleeve effort to put a Late summer of 2009, IFB Presiquestion to the voters on adoption of what is called dent Philip Nelson appointed a spe“The Fair Map Proposal.” cial committee to study and make The state Constitution allows citizens an avenue for recommendations to the IFB causing change. To do so requires a huge commitboard.

The Legislative Redistricting LIN Working Group met for the first time ment, and IFB board members have made it. They WARFEL recognize the problems with the current system and at the IFB annual convention in believe the Fair Map Proposal will be a huge improveChicago on Dec. 7. A plan to study existing efforts was put in place with meetings ment over what we have now. scheduled Dec. 17 and Jan. 19.

What action do we need to take?

Discussions yielded the following points of interTo get the question on the November ballot, we est: need something like 500,000 valid signatures on peti1. The way we tions. Whew! determine districts Actually, the ConstituLegislative redistricting at GALC tion requires signatures now, politicians Coming to the Illinois Farm Bureau Governmental representing 8 percent of choose their voters, Affairs Leadership Conference (GALC) Tuesday and the number of voters in instead of voters Wednesday? Don’t miss the opportunities to learn about the last governor’s elecchoosing their and participate in the drive to change how Illinois draws tion. politicians. its legislative district boundaries.

That number would 2. Polarization IFB is supporting the Fair Map Amendment Initiative, be 279,040, but to ensure between political which seeks to put a proposal to amend the state Constithe effort carries, extra parties has become tution before voters. The amendment would change the signatures are needed by more intense, with method used to draw state legislative districts.

April 1. May 2, 2010, is more power going A workshop “Creative Drawing: Legislative Redistrictinto the hands of ing” will be offered Tuesday in the first workshop session the final date for the signed petitions to be fewer people. that starts at 10:40 a.m.

IFB Director Terry Pope, chairman of the IFB Legisladelivered to Springfield.

3. Since the tive Redistricting Working Group, will give an update on IFB families can take boundaries were a huge bite out of that established in 1972, Farm Bureau’s efforts. Kevin Semlow, IFB director of state legislation, will discuss the process and answer number. We are orgathe maps have nized in every county of become increasingly questions.

Tuesday afternoon, legislative redistricting will be the the state, and we have a worse, splitting or focus of a booth in the exhibit hall. Petitions for each lot of members. Please ignoring natural election authority in the state will be available to sign, get involved with helping political boundaries. and notaries will be available to notarize petitions. to get those signatures!

4. It has become This is something that harder for moderates could be considered a lifetime achievement in helping to win.

Illinois get better and do better. Get in touch with 5. Incumbents have gotten stronger, and in many cases they are uncontested when running for re-elec- your county Farm Bureau office. tion.

Lin Warfel farms near Tolono in Champaign County. He The Legislative Redistricting Working Group served on the IFB Legislative Redistricting Working Group. focused on three goals:

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Please send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701

The BIGGEST corn crop The results on the size of this year’s corn crop are in.

Recall the difficulty of getting the crop planted last spring: rain, followed by rain with more rain added for good measure? And then the difficulty of harvesting the crop because of, you guessed it, rain.

It turns out, nationally, this year’s corn crop — at 13.2 billion bushels — is the largest on record. The second largest was in 2007.

The State of Illinois did not fare quite as well, with the weather hurting things around here. This year’s corn crop was only the fourth largest and almost 10 percent less than the state’s WILLIAM largest crop in 2007.

BAILEY Nationally, this year’s corn crop was just about twice as large as the 1980 crop. That is a lot of additional corn produced — about 6 billion bushels.

What happens to all of that corn? Has the use of corn changed much over the past 30 years?

USDA has excellent records of how corn has been used over the years. From those records, let’s look at the three main categories of corn use — animal feed, food and industrial demand, and exports. In 1980, almost 60 percent of the crop was fed to livestock, about one third of the crop was exported, with slightly less than 10 percent going to food and industrial uses.

Moving ahead to this year’s record crop, USDA expects about 40 percent of the crop to be fed to livestock, another 15 percent to be exported, with the remainder — about 45 percent of total demand — to be used for food and industrial purposes.

The amount of corn exported this year will be less than in 1980, despite years of aggressive export assistance efforts by the government. The amount of corn fed to livestock has increased about one third. The biggest gainer, and this is not even close, is food and industrial use, with this year’s total increasing more than sevenfold from the 1980 level.

So what is driving this huge increase in food and industrial use of corn?

USDA includes high-fructose corn syrup, glucose, alcohol for beverages, cereal, and alcohol for fuel in the food and industrial use category. Since 1980, corn used in corn syrup production has increased about threefold, corn used as alcohol for beverages has doubled, and corn committed to cereal use has tripled.

But the biggest increase was in corn used in the alcohol-for-fuel (ethanol) category. In 1980, 35 million bushels were used for ethanol. This year, 4.2 billion bushels will be used for ethanol.

For those of us in Illinois, this huge increase in demand for corn from the ethanol industry isn’t a surprise. However, we should still marvel how a use that was 0.4 of a percent of total demand now takes more than 30 percent of the corn crop. And over just a 30year period.

What changes will the next 30 years bring to the corn industry?

William Bailey is director of Western Illinois University’s School of Agriculture in Macomb. His e-mail address is WC-Bailey@wiu.edu.