THE USE OF ANTIBIOTICS in pork production again is emerging as an issue with legislation being introduced in the U.S. House. ..............................................2
ILLINOIS FARM BUREAU this year is putting a premium on member involvement in implementing new policy to guide the organization. .............3
THE NATIONAL WEATHER Service is predicting the frigid weather in Illinois could break this week with temperatures possibly climbing above freezing. ....................5
Monday, January 11, 2010
Two sections Volume 38, No. 2
Biodiesel credit delay fuels anxiety, slows plant flow BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
Continued uncertainty about biodiesel tax incentives could sideline an industry already operating at significantly reduced production. Illinois Soybean Association Executive Director Lyle Roberts reported only about 15 percent of the nation’s 200some biodiesel plants were in operation last week, primarily because of concerns about availability of a $1-per-gallon biodiesel fuel blenders credit. Occupied with health care, the Senate failed to renew the credit prior to its Dec. 31 expiration. In Iowa, a key biodiesel state, “production’s pretty much shut down” pending credit extension, energy consultant John Urbanchuk told FarmWeek. In a December study, he warned eliminating the credit would have “a substantial negative impact on biodiesel production and the consequent economic and environmental benefits made by the biodiesel industry.” Roberts noted efforts are under way in Washington to extend the credit retroactively to Jan. 1 in order to spur biodiesel purchases in 2010.
But he questions how long operating plants will be able to meet costs and continue production if the extension discussion “drags out into a late February-March timeframe.” “Like anything new on the market, our people need to have that (credit) in order to survive — to keep biodiesel flowing into the market, to keep people using it,” Roberts argued. “From a farmer perspective, it’s horribly important: 75 percent of our (soy) oil goes into vegetable oil markets, but we put quite a bit into the biodiesel market, as well. “You’re into the contracting season for fuel suppliers; you’re into farmers making decisions about what their going to plant. It’s leaving a lot of variables that See Biodiesel, page 4
AMONG THE LUCKY ONES
Seward-area producer Richard Beuth, right, installs a manure gas warning placard supplied by the Winnebago County Farm Bureau as his son, Paul, works in the background. The safety campaign — offering reflective metal signs free of charge to area dairy, beef, and swine producers — is being highlighted as a nationwide County Activity of Excellence during the America Farm Bureau Federation’s annual meeting this week in Seattle. In July 2008, a local dairy producer was overcome by methane gas while working alone in a pit used to transfer manure from his milking parlor to a lagoon. The man’s 20-year-old son attempted a rescue, but also succumbed to the gases before a second son could phone for help. “There’s no reason ever to go down there unless you have the proper (safety) equipment and people right by,” Beuth advises. “It’s just not worth it.” (Photo by Ken Kashian)
Legislative Roundtable
Budget cuts, tough decisions in store for state BY KAY SHIPMAN FarmWeek
Deep snow isn’t the only thing Illinois will be digging out of this winter. Existing and anticipated holes in the state budget loomed large in reports to the Illinois Agricultural Legislative Roundtable last week. The Illinois Department of Agriculture (IDOA) is preparing to cut 14 percent from its budget proposal, Illinois Agriculture Director Tom Jennings told assembled leaders from across the state. “We will have a lot less money,” he warned. “We’re going to cut anywhere we can,” Jennings told FarmWeek. He said IDOA is considering across-the-board cuts. For the current fiscal year, IDOA’s budget is $105 million
to $106 million. About half of that is used to fund ag-related programs, such as University of Illinois Extension and Soil and Water Conservation Districts, that are not operated by IDOA. Those entities are being asked for ideas on spending cuts and for ways they can raise money to become more selfsupporting, Jennings said. Jennings read a laundry list of $2 million in proposed fee increases for different IDOA services and licenses. The fee increases would go to support related programs, he said. All of state government is sharing the pain. The state’s budget deficit is an estimated $11.5 billion, which is about 44 percent of the state’s general revenue fund, said Kevin Semlow, Illinois Farm Bureau director of state
FarmWeek on the web: FarmWeekNow.com
legislation. The total state budget is $54 billion of which $26 billion is supported by tax revenue in the general revenue fund. Meanwhile, revenue continues to decline, according to Semlow. Personal income tax revenue was down 9.1 percent, and sales tax revenue as of November was down 13 percent. The state won’t receive any money from the estate tax this year because it expired last Dec. 31. That tax generated $288 million last year. The problem is so severe that if Illinois paid off all its debts in the next fiscal year, the state would have enough money remaining to operate programs for only seven months, Semlow estimated. “It’s going to be a difficult year, in my estimation — even
more difficult than last year,” Semlow said. The severity of state money problems spurred one Roundtable group to propose “fiscal integrity” as the theme for a summer gubernatorial candidate forum. State lawmakers have set a very tight schedule to grapple with the state’s funding problems and legislative issues. The General Assembly is to meet three days this month. The House is then scheduled to return on Feb. 3 with the Senate returning on Feb. 8. With tentative adjournment scheduled for May 7, the spring session will have a packed schedule, Semlow noted. Semlow advised ag leaders not to wait to address their issues “or you’ll be left in the cold.”
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, January 11, 2010
Quick Takes CLIMATE SUMMIT? — More than 40 scientists last week sent a letter to American Farm Bureau Federation (AFBF) President Bob Stallman requesting a meeting to discuss his group’s “inaccurate and marginalized” position on global warming. AFBF cites no generally agreed upon scientific assessment on the impact of carbon emissions from human activities on past warming or future climate change. According to the scientists’ letter, that assertion ignores the scientific evidence of climate change. “We are disappointed that the American Far m Bureau has chosen to officially deny the existence of human-caused climate change when the evidence of it has never been clearer,“ they stated. In the wake of charges that research challenging current climate assumptions has been suppressed, the Illinois Agricultural Legislative Roundtable last week agreed to the need for climate policies that pose “no harm” to agriculture and promote farming as beneficial to a “low-carbon society.” The group urged increased research into climate and other areas. “We need better science behind climate change,” Roundtable participant Rod Weinzierl said. MADIGAN, STATE FIGHT CARP LAWSUIT — Illinois Attorney General Lisa Madigan took legal action last week, asking the U.S. Supreme Court to reject a Michigan lawsuit that seeks immediate closure of the Chicago Sanitary and Ship Canal, which connects Lake Michigan and the Illinois River. Michigan Attorney General Mike Cox claims that action would prevent Asian carp from migrating up the river into the Great Lakes. Madigan countered that Michigan has not shown it would suffer “irreparable harm” if the canal isn’t closed. She added the closure would devastate the commercial navigation industry and passenger vessel businesses and be disastrous for the nation’s economy, especially the grain, steel, energy, and construction industries. LOCAL FARMERS MAKE DECADE’S TOP FOOD LIST — Local farmers were up there with Julia Child and celebrity chefs among the top 10 “food people” list of the last decade, according to The Food Channel’s editorial staff. Among the decade’s top food influences were organic food and community-supported agriculture. The decade’s top news that impacted food included food safety, food prices, sustainability, and organic production.
EMERGING ISSUES
NPPC: A lot at stake in antibiotics debate BY DANIEL GRANT FarmWeek
If the use of antibiotics were severely restricted or banned in U.S. pork production, it would impact more than just the bottom lines of producers. The loss of antibiotics could threaten the health of the swine herd, it could have a negative impact on human health, and it likely would increase retail pork prices, according to Jennifer Greiner, director of science and technology for the National Pork Producers Council (NPPC). The issue surrounding the use of antibiotics in pork production has heated up in recent months. Legislation introduced in the U.S. House of Representatives would ban farmers from feeding antibiotics to animals prior to the outbreak of sickness or disease in the animals. The American Farm Bureau Federation (AFBF) opposes that legislation. A recent wave of media reports on the subject also has heightened the concern about the possibility of developing drug-resistant infections and/or diseases in humans. “My message to producers is we have trouble brewing,” Greiner told FarmWeek. What should hog producers say when it comes to discussing the use of antibiotics? The vast majority, 87 percent, of antibiotics used in the swine industry is intended for disease treatment, prevention, and control. The remaining 13 percent of approved uses are to enhance production, according to NPPC. So legislation that would ban the use of antibiotics “would mean we no longer can prevent or control diseases with antibiotics,” Greiner said. Antibiotic restrictions similar to those enacted by the Danish government would cost the U.S. pork industry $6 per head in the first year, and $1.1 billion in the first decade, and retail pork prices would increase by about 2 percent, Greiner said. “With the economic pressure our producers have been under, that (ban of antibiotics) would be a burden many wouldn’t be able to survive,” Greiner said. Meanwhile, while it is scientifically possible for a drug-resistant bug to be passed from a hog to a human via the food chain, there is no
evidence it is occurring in the real world, according to Greiner. “It is possible, but we’ve never linked a resistant bug in a pig that survived the food chain, which then created a food-borne illness in a human,” Greiner said. “Mitigation steps are in place so that doesn’t happen.” In fact, consumers could face more health risks if pork producers are prevented from using antibiotics on their animals, she said. A study at Iowa State University concluded there is a greater chance of a food-borne pathogen on meat from animals that were sick at some point in their lives. “A healthy animal produces safe food,” Greiner said. The National Antimicrobial Resistance Monitoring Program for more than a decade tracked antibiotic-resistant bacteria in humans, and evidence from that program reportedly didn’t show patterns that would be expected if the resistant bacteria were routinely transferred from animals to humans. However, producers still should be cautious in using antibiotics in their herds. “We do need to use antibiotics responsibly,” Greiner added. “That’s why we work with veterinarians to put together herd health programs and why producers should participate in the PQA (Pork Quality Assurance) Plus program.” The PQA Plus program emphasizes good management practices in the handling and use of animal health products, leading to a higherquality and safe pork product that is free of drug residues, once it reaches the market. AFBF and others wrote the Obama administration last August saying, “The bottom line for on-farm antibiotic use is this: Farmers and ranchers strive daily to provide best possible management of their animals through superior genetics, nutrition, veterinary care, housing and handling. “Optimal animal health and welfare leads to production of safe, affordable, and abundant food, critical to U.S. food security. “Maintaining the health of U.S. herds and flocks requires farmers and ranchers to have all approved safe and effective technologies, including animal health products, available to us.”
IFB informing voters about primary candidates (ISSN0197-6680) Vol. 38 No. 2
January 11, 2010
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2010 Illinois Agricultural Association
STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard Advertising Sales Manager
Richard Verdery Classified sales coordinator
Nan Fannin Director of News and Communications
Dennis Vercler Advertising Sales Representatives
Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
Illinois Farm Bureau is helping members prepare for the Feb. 2 primary election via an online “Voters’ Handbook.” It can be found at {http://voters.ilfb.org/primary 10/splash.htm}. Kevin Semlow, IFB director of state legislation, reminded registered voters they still may obtain an absentee ballot for the primary. Absentee voting is especially important for farmers who may be out of the area on election day. “Even though you are not here in person, your land is,” Semlow said. “Make sure candidates you trust are elected, and casting your vote is the way to protect your investment and hard work.” To obtain an absentee bal-
lot, first obtain and complete an application from your county clerk’s office. Be sure you include party affiliation because Feb. 2 is a primary election to determine candidates to face one another in the general election in November. The application must be mailed to the county office by Jan. 28. After receiving a ballot, the absentee voter must complete it and return it in the certification envelope provided. Absentee ballots must be postmarked no later than midnight Feb. 1. To learn more about primary election candidates, Farm Bureau members may view the Voters’ Handbook’s complete
listing of candidates for state constitutional offices, the General Assembly, and Congress. IFB also provides voting records of incumbents, if applicable. The voting record percentage (listed after an incumbent’s address) signifies the percent of times the incumbent’s vote coincided with IFB policy on selected bills during the 2009 state and federal legislative sessions. Bills are weighted based on their relative importance before voting record percentages are calculated. A complete copy of the voting records for the Illinois General Assembly and the Illinois congressional delegation also is available on the IFB website.
FarmWeek Page 3 Monday, January 11, 2010
STATE
Ag campuses reflect pain of state money problems BY KAY SHIPMAN FarmWeek
State budget problems are impacting ag programs at the four state universities, the Illinois Agricultural Legislative Roundtable learned last week. Bob Hauser, interim dean of the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES), reported on the situation on his campus as well as those of Illinois State University (ISU), Southern Illinois University (SIU), and Western Illinois University (WIU). The composition of those universities’ budgets has changed with a higher percentage now coming from student tuition and fees and a lower percentage from the state, Hauser noted. For the Urbana-Champaign campus, the state contributed $262 million in 1992 compared to $273 million in fiscal year 2009. Meanwhile, for the same years, student contributions skyrocketed from $78
million to $420 million. Tuition and state general revenue funding cover faculty and staff salaries; however, two-thirds of the U of I ag faculty is involved with research and Extension, Hauser noted. “It’s important
to understand, we can’t take research (funding) increases and pay ourselves,” he added. “The (budget) composition change has huge implications for colleges like ours. Students are paying a greater portion (of the total budget) every
year,” Hauser said. “Guess where they (administrators) go when they need budget cuts? Campus (officials) looks for non-teaching activities, and that’s us more than LAS (the College of Liberal Arts and Sciences).”
Ag groups set 2010 state legislative priorities The Illinois Agricultural Legislative Roundtable last week tentatively set its state priorities for the agriculture industry. More than 50 agricultural organizations, universities, agribusinesses, and federal and state governments were represented at a meeting in Bloomington. The following list of state priorities is preliminary, pending final consensus from all roundtable members: • Provide maintenance-level funding for agriculture programs within the current tax structure. • Streamline the environmental permit process for business development and expansion. • Coordinate Illinois estate tax exemption and stepped-up basis with the federal estate tax. • Support having the Illinois Department of
Natural Resources abide by drainage laws. • Address spray drift issues through enhanced communication. • Support funding for agricultural, conservation, and rural community programs, including health and mental health services and the AgrAbility program. • Support rural infrastructure, including broadband. • Support funding for ag education, research, and outreach, including Extension, and support prioritizing of ag capital developments on university campuses. • Develop a comprehensive ag research, education, and outreach model for Illinois agriculture. • Improve the Illinois business climate. • Support legislative reform regarding nuisance lawsuits. — Kay Shipman
Hauser quipped the U of I was waiting for a $400 million check from the state, but had received only 7 percent of its allocation thus far. Last week, interim U of I President Stanley Ikenberry announced that faculty and administrators will have to take 10 unpaid days by midJune. In addition, the university will use $65 million in reserves to address immediate cash needs, according to Ikenberry. The U of I isn’t alone. SIU Carbondale is still reeling from a May storm that destroyed many buildings on its research farm. The campus is in dire need of a new agriculture building, according to SIU officials. However, the universities also noted enrollments have increased among undergraduate students at ISU, SIU, and WIU. The U of I has seen an increase in second- and thirdyear students transferring into ag programs.
Feb. 23-24
GALC: One-stop shop for agricultural issues and networking Call it issue immersion. Over two days, Farm Bureau members will hear the latest details about governmental and agricultural issues, network with fellow leaders, and talk with government officials. “The Governmental Affairs Leadership Conference (GALC) is a great opportunity across the board on federal, state, and local issues,” said Mark Gebhards, executive director of the Illinois Farm Bureau’s Governmental Affairs and Commodities Division. The 2010 GALC will be Feb. 2324 in the Crowne Plaza, Springfield. The general sessions and workshops are designed to help Farm Bureau members learn how to work together and build a reliable politi-
cal network for agriculture. The opening and closing sessions will focus on two critical issues — transportation and the environment. Transportation issues will be divided into two areas: infrastructure and regulations, according to Gebhards. Agriculture has major needs for improved transportation infrastructure. With reauthorization of the federal Surface Transportation and Highway Act, there are opportunities to have funding appropriated for surface, rail, and water transportation infrastructure, Gebhards noted. The session also will cover transportation priorities and initiatives
that impact members and their farming operations. On the environmental front, the agriculture industry is facing many challenges that will be discussed in the closing session. Environmental issues include pending regulations on greenhouse gas emissions and the economic impact those rules may have on agriculture, Gebhards said. In addition to the general sessions, GALC offers workshops on a wide variety of topics, including property assessments, health care, rural economic development, and social media for agriculture. A statewide legislative reception Feb. 23 will provide members an
opportunity to discuss issues with their own legislators and others who participate in Farm Bureau’s Adopt-a-Legislator program. Members are encouraged to bring cameras for photos with their lawmakers and adopted legislators. The registration fee is $50 to attend the first day, $30 for the second day, or $70 for both days. Pre-registration is required. Hotel accommodations are separate and must be made directly with the Crowne Plaza or the Holiday Inn Express. Hotel reservations should be made by Jan. 29. For more information or to register, contact your county Farm Bureau office or online to {www.ilfb.org}. — Kay Shipman
FB sharpening its focus on policy implementation Policy development has long been a hallmark of Illinois Farm Bureau. This year IFB is putting a premium on member involvement in implementing that policy. “All of us are con-
cerned about the unprecedented, rapid-fire challenges that confront agriculture. Never before have the stakes for agriculture been so high,” said Terry Pope, the IFB director who chaired the
IFB Policy Implementation Working Group. The grassroots strength of our organization has never been more essential or critical,” As Farm Bureau members’ farming operations and lifestyles have changed so has their involvement in Farm Bureau — for a variety of reasons, Pope noted. The IFB board is encouraging members to be part of the decision-making process and to make their voices heard when called to take action. On the local level, county
Farm Bureau leaders are working to engage members and increase participation and to develop relationships with elected officials. Members should visit {www.ilfb.org/fbact} and contact their county Farm Bureau to learn how they can become engaged. It can be as simple as placing a call to your elected official on issues important to agriculture or becoming an online advocate for agriculture. Other sectors are speaking out, and agriculture needs to make sure that its voice is being heard, said Pope. “Illinois Farm Bureau is committed to representing
the needs of its members, but that can only be done with the involvement of the members at all levels,” said
IFB President Philip Nelson. “Agriculture’s future is in the hands of you members.” — Kay Shipman
Illinois traffic deaths fewer than 1,000 in ’09 Fewer than 1,000 people died in vehicle accidents last year, breaking an 88-year record for the state. Seat belt use exceeded 91 percent among Illinois drivers. In 2008, Illinois marked 1,043 traffic fatalities compared to 1,248 in 2007. The Illinois State Police and local law enforcement have targeted the “fatal five” violations to reduce traffic fatalities. These violations include speeding, not wearing seat belts, improper lane usage, following too closely, and driving under the influence. On Jan. 1, two new traffic laws took effect in Illinois which: • Prohibits all drivers from using wireless telephones when driving in a school zone or construction zone; and • Prohibits text messaging, composing, reading or sending electronic messages, or accessing the Internet while driving.
FarmWeek Page 4 Monday, January 11, 2010
GOVERNMENT
Effort to ax ethanol credit part of ‘anti-biofuels agenda’? BY MARTIN ROSS FarmWeek
Given national renewable fuels mandates, elimination of the ethanol tax credit could result is the U.S. “exporting another industry” at a time when Americans should “diversify away from foreign oil,” an energy industry analyst warns. The Illinois Agricultural Legislative Roundtable redoubled efforts to protect existing ethanol support and ensure federal offi-
FarmWeekNow.com Listen to John Urbanchuk’s comments on the anti-biofuels agenda at FarmWeekNow.com.
cials incorporate biofuels into greenhouse reduction-climate change programs. Members pushed extension of the ethanol excise tax credit, which expires Dec. 31, 2010. The 45-cent-per-gallon ethanol blenders credit has come
under attack from various interests, including Texas-based Rice University. A new university report challenges both the ethanol credit and a current ethanol import tariff designed to offset tax credits granted to competing foreign biofuels. Study co-author Amy Myers Jaffe argued “we need to set realistic targets for ethanol . . . instead of just throwing taxpayer money out the window.” The report suggests increased Midwest corn ethanol production “could cause an increase in detrimental regional environmental impacts.” Industry consultant John Urbanchuk sees, “quite clearly, an anti-biofuels agenda being played out,” painting corn ethanol as a key force in altering global land use and boosting greenhouse emissions. He labeled that premise “bull,” suggesting “these people are trying to pull out everything they can to try to show (the ethanol credit)
is bad policy.” “Congress and the president have determined use of biofuels is in the national interest,” Urbanchuk told FarmWeek. “Consequently, we have a renewable fuels standard (RFS) that says we’re going to use 36 billion gallons by 2022. But it doesn’t say we have to produce them. “What this is going to come down to is, are we going to have a domestic (biofuels) industry, or are we going to export another industry from the United States?” The Roundtable also stressed the need to resolve land use issues and supported efforts to increase the standard gasoline ethanol blend level beyond a current 10 percent. The ethanol credit came under fire amid reports U.S ethanol production reached an all-time-high 740,000 barrels per day in October. Ethanol prices have rallied despite news of record production, reportedly because of RFS-
Future physician:
Fix current health system Illinois Wesleyan University senior Isabella Rossi plans a career in rural medicine. Though she isn’t yet certain what specialty to pursue, she has some impressive footsteps to follow — and a unique perspective on the health care debate. In 1955, Rossi’s grandfather, Lawrence, founded what was to become Tazewell County’s Hopedale Medical Complex, which now encompasses primary care and surgical services, assisted and independent living facilities, wellness and sleep disorder centers, and rehab-sports medicine programs. Rossi’s father, Matthew, and several other rel-
Providing rural providers The Rural Illinois Medical Student Assistance Program (RIMSAP), a partnership between Illinois Farm Bureau and the Illinois State Medical Society, was launched in 1948 to help provide doctors for rural communities in Illinois. Since then, the program has assisted more than 800 students with a recommendation for acceptance and/or loan funds. The RIMSAP Board, which includes IFB board representatives, can recommend candidates annually for acceptance to the University of Illinois College of Medicine. Student grade point average and medical college admission test scores weigh heavily in selection for a board interview and a possible recommendation. A recommendation from the board gives positive weight to individual applications. Students seeking financial aid will be contacted after they have been accepted as U of I medical school students. The College of Medicine office of student financial aid provides a financial aid request form as a basis for selection of students to receive RIMSAP loan assistance. Loans of $3,750 per semester at 4 percent interest are available during the four years of medical school, with a $30,000 maximum loan. The borrower must be insured for the total amount of their intended loan and pay premiums on the policy, and repayment begins three years following termination of post-graduate training. For application details, visit {www.rimsap.com}
atives are physicians at Hopedale, and her family of doctors have helped shape her view on how to improve health care. The Tremont student told FarmWeek she is “not really pulling” for the House’s proposed “public option,” which would attempt to extend health coverage through a government-run program. Instead, she favors remedies within the existing system, including malpractice reforms to reduce “wasteful medicine” — costly tests and procedures aimed at reducing provider liability — and “fairer” Medicare reimbursements. Rossi emphasizes the need for patient “accountability” through improved personal wellness. She fears a government-managed option would lead to standardized care and discourage individual decision-making and wellness efforts — a consequence she sees as having implications for consumers and taxpayers alike. Under tax breaks or other incentives, consumers who make sound wellness/health care decisions “could benefit rather than suffering from other people’s poor decisions,” Rossi argued. “And if there were a government-run system, it would be hard to draw a line as to what good health care is, what people deserve,” she added. “Medicine’s definitely more an art than a science, and health care in general isn’t something that should be rationed.” Rossi was one of several Illinois students and graduates last week seeking educational support through Illinois Farm Bureau’s Rural Illinois Medical Student Assistance Program (RIMSAP). Since 1948, RIMSAP has provided 800-plus students with university recommendations and/or loans. As lawmakers prepare to conference the House plan with a more menu-driven Senate approach to expanding coverage, Rep. Aaron Schock, a Peoria Republican, has joined CSPAN in seeking open media coverage of future health care negotiations. Schock charged House Democrat leaders with “meeting behind closed doors to draft their health care reform plan.” “The plan being written behind closed doors will increase government spending, raise taxes, and increase health care costs,” warned Schock, who deemed the public option a “government takeover.” — Martin Ross
related demand and a 58-cent advantage in ethanol vs. gas prices. Urbanchuk plans in February to issue a study of the ethanol credit “and what will be at risk if it’s not there.” Cellulosic ethanol development, an alternative to using food crops for biofuels,
could be one such casualty. “If Congress is unwilling to reauthorize one tax credit for a viable existing technology, what makes you think they won’t cut the legs out from under another one?” Urbanchuk posed. “If I’m an investor, that remains a significant risk in my mind.”
Biodiesel Continued from page 1 make it really tough from a business perspective.” According to Urbanchuk, elimination of the credit would result in a loss of regional jobs and income and increased demand for diesel from foreign oil and “degradation of energy security.” In addition to lower demand for soy oil and beans for crushing, leading to lower soybean prices, loss of the incentive would reduce state and local tax revenues. Without the credit, fuel marketers likely will be unwilling to pay much more than prevailing petroleum diesel prices for biodiesel, Urbanchuk said. At $3.46 per gallon for 100 percent Iowa biodiesel vs. a $2 spot price for Gulf diesel late last week, he noted the industry is looking at “a fairly significant difference” without a credit offset. “I think the odds are (the credit) will get reauthorized, but I don’t think it’s a slam dunk by any stretch of the imagination,” Urbanchuk said.
AFBF seeks biotech access, farm ‘fair shake’ As the biotech industry addresses concerns about concentration and competition, a Farm Bureau policy specialist sees dual goals for antitrust review — that “farmers don’t get hurt and don’t lose access to technology.” As part of a sweeping new review of ag concentration issues, USDA and the Department of Justice are eyeing the market implications of consolidation and concentration that has led to a few companies directing most biotech crop development. In comments to the agencies released last week, St. Louis-based giant Monsanto highlighted the purported impact of industry development on farm income, estimating GMO corn, soybeans, and cotton alone added $20 billion in cumulative income from 1996 through 2007. The company argued competition through new product development has benefited even non-users of GMO seed, in part through reduced pesticide prices. Producers have continued to see “a wide range of choices” in 2009 and 2010, Monsanto maintained, noting that in corn alone, more than 6,000 biotech and 1,000 conventional hybrids are available for 2010. Changes in seed company offerings have led to “greater diversification and increased presence for many trait providers,” it stated. Monsanto said its future product development pipeline is “sufficiently robust as to virtually guarantee many new product offerings over the next decade.” In its comments, American Farm Bureau Federation sought discussion of issues including licensing agreements between biotech companies and seed dealers. AFBF questioned proposals by Monsanto — later withdrawn — to prohibit sales of Roundup Ready 2 soybeans by suppliers who continued to sell first-generation Roundup Ready 1 beans. AFBF regulatory relations director Russell Williams told FarmWeek Farm Bureau is working with Monsanto and other companies to iron out other potential concerns. “We want to make sure, first, that farmers are getting a fair shake,” Williams said. “We obviously like the technology; we want to use it. We just want to make sure this is a fair system and that antitrust regulations are enforced. “We’re conscious there may be some other factors at work here, such as possibly trying to bust up Monsanto. We want to absolutely make sure the ability of this technology to flourish in the United States isn’t hampered by a decision from the Department of Justice.” As major biotech companies continue to acquire smaller technology providers, he stressed the need to assure such “absorptions” don’t result in growers being “beholden to one or two companies.” AFBF supports continued public crop improvement research, with assurances universities are adequately compensated for “innovative research.” “That provides competition for Monsanto,” Williams said. — Martin Ross
FarmWeek Page 5 Monday, January 11, 2010
ENVIRONMENT
Illinois watersheds part of Mississippi River initiative BY KAY SHIPMAN FarmWeek
Water quality projects will be the focus of a new conservation initiative in four Illinois watersheds selected for a USDA Mississippi River Basin program. Illinois is home to four of 41 watersheds in 12 states in
FarmWeekNow.com For complete details on the river initiative project, go to FarmWeekNow.com.
the new Mississippi River Basin Healthy Watersheds Initiative (MRBI). Over the next four years, USDA will provide about $320 million for voluntary projects in selected watersheds within the river basin. The Natural Resources Conservation Service (NRCS) identified the Illinois watersheds as the Upper Illinois, the Lower Illinois-Senachwine Lake, the Vermilion (Mississippi River), and the Vermilion
(Ohio River). See the accompanying map. Ivan Dozier, assistant state conservationist for programs, explained NRCS will focus on smaller watersheds within the four selected watersheds. MRBI projects will help farmers implement conservation and management practices that optimize nutrient use on agricultural land. “There will be a suite of practices,” Dozier said. Watershed projects will be selected through a competitive process. Groups within the watersheds may “customize a proposal specific to the needs in that watershed,” Dozier said. For example, projects might focus on use of nitrogen, phosphorous, or both nutrients. Nationwide selections for MRBI were based on the potential for managing nitrogen and phosphorus, nutrients associated with water quality problems in the Mississippi River Basin. Dozier encouraged interested groups within the water-
sheds to consider the projects they might want to submit after the official USDA proposal request has been announced. Projects will be selected under NRCS’ Cooperative Conservation Partnership Initiative (CCPI) using the Environmental Quality Incentives Program (EQIP), the Conservation Stewardship Program (CSP), and the Wildlife Habitat Incentives Program (WHIP); or through the Conservation Innovation Grant (CIG) program or the Wetlands Reserve Enhancement Program (WREP). Dozier reminded landowners that once projects have been selected the funding will come from individual conservation programs, such as EQIP and WRP. Landowners will sign up at their local NRCS offices and compete for funding based on local criteria ranking. Under the MRBI initiative, landowners will compete on the local level for a share of local available funds, Dozier noted.
“We definitely will have dollars dedicated on a very focused area for a very focused resource concern,” Dozier said. For information about the
MRBI in Illinois and nationwide, go to {www.nrcs.usda. gov/programs/mrbi/mrbi_wa tersheds_maps_and_list_page.ht ml} or contact the NRCS office in your area.
Frigid weather pattern could break this week BY DANIEL GRANT FarmWeek The weather during the first week of 2010 picked up where it left off in 2009 –- colder than normal. Temperatures across the state from Jan. 1 through Jan. 6 averaged anywhere from 10 to 25 degrees below normal, according to the Midwestern Regional Climate Center. “We’ve seen a continuation of the below-normal temperatures,” said Dan Smith, meteorologist with the National Weather Service. “It looks like it will continue into early (this) week.” The statewide average temperature in December was 28.9 degrees, which was 1 degree below normal, the Illinois State Water Survey reported. The
This field of corn was among the few that remained unharvested in Illinois last week. (Photo by Teresa Grant-Quick, Livingston County Farm Bureau manager)
statewide average temperature for 2009 (51.2 degrees) was 0.8 of a degree below normal. Snowfall totals for the first week of the year ranged from 2 to 8-plus inches. The heaviest amounts were in the northern
half of the state. However, Smith predicted the frigid pattern could break this week. “Temperatures may get above freezing by the middle of (this) week,” said Smith, who noted
the last recording of an abovefreezing temperature in Central Illinois technically was last year (34 degrees on Dec. 31). In fact, a weather system that could pass through parts of the state later this week may bring rain to Southern Illinois. However, the prediction was of little comfort on Friday as another blast of arctic air moved through the U.S. Temperatures in the southern U.S. were predicted to drop as low as the teens or lower 20s, which, could threaten the fruit and vegetable industry in the south, Accuweather.com reported. In Illinois, the freeze had a number of effects on the ag industry. Farmers with corn left to harvest reportedly were able to get
back in fields at some locations as previously muddy soils finally were stable enough to support harvest equipment. “While the vast majority of producers have finished harvesting, there are areas where farmers continue as weather permits,” the National Agricultural Statistics Service state office reported last week. But frozen fields are having an opposite effect for others. “Horseradish growers can’t get in the field because it’s frozen,” said Elizabeth Wahle, University of Illinois Extension fruits and vegetable specialist. Meanwhile, hog and cattle futures prices increased last week due to concerns that the severe winter weather could reduce animal weights and stall shipments to slaughterhouses.
Consecutive wet years a ‘challenge’ for specialty growers Back-to-back wet years certainly were a challenge for specialty crop growers. Illinois in 2008 and 2009 received a combined average total of 100.8 inches of precipitation, which is 22.4 inches above normal, according to the Illinois State Water Survey. But the unusual weather, which also was cooler than normal last year, did provide a few benefits to specialty crop growers, according to Elizabeth Wahle, University of Illinois Extension fruits and vegetable specialist. Wahle discussed growing
conditions this past year during an interview with FarmWeek at the Illinois Specialty Crops Conference last week in Springfield. The conference was hosted by the Illinois Specialty Growers Association.
“The past two years have been challenging,” Wahle said. “Growers had to address issues that normally aren’t a problem.” Planting delays were a major problem in 2009 and many specialty crop growers were unable to spread out their plantings, which effectively shortened the marketing window for crops such as strawberries and sweet corn. Wahle was unaware of any major crop failures but noted a number of growers lost portions of their crops because of flooding.
Cooler-than-normal temperatures, which averaged 0.8 of a degree below normal in the state last year, also delayed the ripening of crops, such as tomatoes. Meanwhile, the cool and wet conditions also promoted the spread of various crop diseases. “A lot of diseases we normally get year to year were much heavier (in 2009),” Wahle said. “Without controls, they would have been at devastating levels” and some producers as a result may have suffered additional crop losses or a total
failure of some crops. The unusual weather, though, did provide some benefit to growers. Insect pressure was “fairly light” due to the excessive precipitation. And fruit coloring generally was good due in part to the crisp temperatures, Wahle said. “At least we still had a crop” the past two years, which is more than many growers could say in 2007 when the infamous Easter freeze killed many specialty plants, particularly in the southern half of the state, Wahle added. — Daniel Grant
FarmWeek Page 6 Monday, January 11, 2010
PRODUCTION
FSA/IRS agreement helps preserve privacy BY MARTIN ROSS FarmWeek
A new partnership between the Internal Revenue Service (IRS) and USDA’s Farm Service Agency (FSA) should protect farmer confidentiality and conserve FSA resources. A revised average adjusted gross income (AGI) review process allows the IRS to compile farm tax data for use in identifying producers who may exceed program income eligibility thresholds. IRS will provide
names to FSA for further inquiry without supplying tax records or specific income figures. Under its new agreement, FSA will give program recipients identified by the IRS 30 days to provide third-party verification that they haven’t exceeded income limits. The 2008 farm bill required producers to prove AGI compliance every three years, setting the stage for comprehensive review of farm tax records. According to Illinois Farm
Bureau’s Doug Yoder, farmers are wary about submitting Schedule F income tax data to county FSA personnel with whom they may be acquainted or who could gain a competitive edge by accessing neighbors’ tax information. “This agreement does several things,” Yoder noted. “It eliminates FSA from viewing tax records. It eliminates all producers from having to take past tax records to FSA. “It eliminates FSA spot-
Contract risks can be reduced — up front Getting out of a contract intact following a buyer’s bankruptcy is difficult, if not downright impossible. But producers can avoid getting into bad contracts with a little common sense, advanced homework, and attention to contract provisions, according to attorneys who witnessed firsthand the fallout of the recent VeraSun Energy bankruptcy. Michael Stewart, Minnesota lawyer and finance-restructuring specialist, noted the South Dakota energy company’s 2008 bankruptcy left producers who’d contracted corn for biofuels production on the hook with lenders and for land rentals and equipment purchases based on anticipated returns. In the case of buyer bankruptcy, unsecured creditors such as farmers “are lucky to get pennies on the dollar,” he said. Both VeraSun and Pilgrim’s Pride — a Texas chicken producer that went bankrupt in 2008 — exercised their right to reject contracts under the federal Bankruptcy Code. Illinois Farm Bureau Senior Counsel Jerry Quick, who mon-
itored the VeraSun bankruptcy and made presentations in Illinois and elsewhere on its consequences for producers, notes that “it is nearly impossible for the typical producer with a grain sale contract to avoid contract assumption-rejection provisions of the Bankruptcy Code, in the event the buyer files for bankruptcy relief.” As new market ventures emerge in an uncertain economy, producers in all sectors face counterparty risk. Stewart said risk has increased with proliferation of modern “limited liability” entities, which in some cases can be formed in hours with a less-than-$1,000 investment and potentially set up “so (owners) can shut it down and walk.” “The big thing is to recognize that the other party may not perform,” he told FarmWeek. “If they don’t perform, you’re stuck with whatever you’ve produced; you have to find another place to sell it. “The difficulty is, no matter what you try to do to get comfortable with the other party’s ability to perform, you’ll never
know for sure, because financial situations can change in a hurry. “Any company can get into a financial bubble, things can change very quickly, and then the farmer is scrambling to try to find an alternative.” Stewart called the VeraSun episode a “classic bubble situation”: The company had attempted to capitalize on a “huge” run-up in ethanol investment when the biofuels market slumped amid high corn/low ethanol prices and consequently tight margins. VeraSun was too highly leveraged to survive eventual collapse, he said. Producers can attempt to seek some form of contract collateral as protection in the event of buyer default, but Stewart warned they typically don’t have the financial clout to force counterparties to deliver. The producer’s best protection is to become “as comfortable as possible” with the prospective buyer’s basic viability, long-term strength, and “ability to perform,” he advised (see accompanying points). — Martin Ross
CONTRACTS AND COMFORT Standard “boilerplate” contract provisions can wind up burning an unsuspecting producer, Illinois Farm Bureau Senior Counsel Jerry Quick warns. “The two big things are clarity — do I understand what I’m agreeing to? — and fairness,” he said. “I need to know what product I’m delivering. Under what terms and conditions do I get paid? How much do I get paid? How easy is it to calculate the (payment) formula? Do they have any way to delay payment? “How long does this contract run? As a legal adviser, it’s impossible for me to say, ‘The longer the better.’ That’s not always the case. One guy may say, ‘I like this transaction; I’d like to be bound for five years.’ Another may say, ‘With the volatility in the grain markets, I’d like it for six months. I wouldn’t want to be bound any longer.’” Even then, Minnesota attorney Michael Stewart suggests producers too often focus on contract terms without regard to the larger “process” of contracting. Producer issues in the wake of VeraSun Energy’s 2008 bankruptcy were related less to the legal contract terms and more to “procedural mistakes” by grain companies and the business team that developed supplier agreements, Iowa agribusiness litigator Jacob Bylund said. The attorneys offer several tips that could help producers avoid dubious deals. • Know the ‘customer.’ With the onset of new limited liability companies (LLCs), that means
knowing the full legal name of contract counterparties; the full nature and scope of their operations; and their financial viability and assets. A good first step is to check the business’ registration with the Illinois Secretary of State, with an eye toward how long it has been filed, whether official data jibe with information given the producer, and whether liens are filed against the entity. Bylund views the lack of any liens as a potential “giant red flag”: “It takes money to plant a crop.” Court records and the Internet can provide additional insights into prospective “partners.” • Confidentiality. Quick is wary of broad provisions that prohibit the producer from discussing contract terms or the transaction itself even with bankers, lawyers, or tax consultants who can provide valuable input on the deal’s validity. “I’ve seen some confidentiality clauses that are very disagreeable,” some in the wind energy area, he related. • Arbitration. Producers should carefully consider provisions binding them to third-party arbitration should contract disputes arise. In Illinois, binding arbitration prevents growers from seeking relief in court. The producer also should feel comfortable with the “forum for arbitration” specified in a contract, be it the American Arbitration Association, the National Grain and Feed Association, or another party, Quick stressed. — Martin Ross
checking everyone. The vast majority of farmers won’t exceed thresholds. It would be a huge waste of FSA time and taxpayer dollars to review all these records. “And this keeps farmers’ confidentiality intact. IRS already has our tax records — that’s nothing new. They’re not going to share those records with FSA.” Producers with more than $500,000 in adjusted gross non-farm income over the previous three tax years are ineligible for any commodity, price support, and/or disaster assistance payments. Those with more than a cumulative $750,000 in threeyear adjusted gross farm income cannot receive direct payments, and producers exceeding $1 million in nonfarm income are ineligible for
conservation payments unless 66.6 percent of their total income comes from farming or related activity. Under the new agreement, producers must consent in writing to IRS reviewing tax records and notifying FSA. Farmers who do not are subject to FSA audit. Farmers may appeal termination of program benefits based on IRS notification to their FSA State Committee or FSA’s national appeals division, rather than county FSA officials. Yoder argued IRS is far better equipped than FSA to process tax data and determine accurate income figures. In addition, he noted changes in the definition of farm income, which now may include returns on ethanol investments or royalties from wind turbines.
Pesticide resistance a growing concern for specialty growers BY DANIEL GRANT FarmWeek
A good insect and weed management strategy obviously is important each year to maximize fruit and vegetable production. But it also is becoming increasingly important for the long-term future of the specialty crop industry. Rick Weinzierl, University of Illinois entomologist, and John Masiunas, associate professor at the U of I department of crop sciences, last week reported at the Illinois Specialty Crops Conference in Springfield there currently are a number of insects and weeds with resistance to pesticides used in specialty crop production. “For apple and peach growers, two insects that are resistant to some products are the codling moth and the oriental fruit moth,” Weinzierl said. Masiunas said pigweeds and waterhemp have developed resistance to some ALS inhibitors, which has become a major challenge for weed control in pumpkins. Meanwhile, weeds such as lambquarter and pigweed also have developed resistance to certain triazine herbicides used by sweet corn and tree fruit producers. “It (herbicide resistance), particularly in pumpkins, has become one of the biggest problems,” Masiunas said. Alternative pesticides have been introduced to control the various insect and weed problems. But growers should take additional steps to manage the pests before some of the current pesticides become ineffective, according to the experts. “When you’ve seen the failure of some products, you’re motivated to use the new products in a way that makes them work as well and long as possible,” Weinzierl said. Weinzierl recommended producers avoid using some of the older, less effective insecticides on tree fruit. And, for new compounds, he recommended producers rotate products over generations of insects rather than rotating products on each application in order to slow the build-up of resistance. Efforts to slow pesticide resistance in weeds should include changing crop rotations and relying on more than one or two herbicides for weed control, Masiunas said. “Prevention is key to good weed management in cropping systems,” Masiunas said. “And, no matter what approach you use for weed management, herbicides should not be the first option. You need to use a range of different management strategies.” Producers also can minimize their need for herbicides by using strategies such as planting crops that grow taller or transplanting crops in order to close the canopy sooner, alternating crops with different tillage requirements, using plastic mulches for crops such as warm-season vegetables, and using drip irrigation and in-row fertilization techniques that benefit the crops and not the weeds.
FarmWeek Page 7 Monday, January 11, 2010
PRODUCTION
Brazilian soybean crop input prices examined BY PHIL CORZINE
It’s finally raining again at our farms in Tocantins. I left the farm on Dec. 6 after seeing nothing but rain. Then the rain stopped, and we only managed a Phil Corzine trace of precipitation until two inches fell on Dec. 28 — so much for Brazil never having droughts. All-in-all, we seem to have come through in decent shape,
with only a few thin stands on areas with gravel. Although a Midwest soybean field normally gets pretty quiet after the glyphosate is applied, Brazilian bean plants don’t get lonely. At the moment, some of our workers are busy applying glyphosate and insecticide, while others are top dressing beans with potash. In a few weeks, they will be back out there with fungicides. It takes several crop protection products to get the crop to harvest in Brazil, and these inputs come at a price.
Round-Up Ready seed cost us $28 per acre, which doesn’t include the tech fee — that’s deducted at harvest when we deliver. Our banded application of phosphorus plus the top dress of potash will yield us a combined analysis of 8128-90, at a cost of $95 per acre. Our crop protection pack-
age, which includes seed treatments, inoculants, herbicides, insecticides, and fungicides, runs us $63 per acre. In biofuels, this month it’s ethanol in the spotlight, as Brazil’s secretary of agriculture stated that the government may drop the required blend rate of ethanol to gasoline to 20 percent from the current 25
percent due to escalating prices for the sugar-cane-based fuel. Alcohol prices have shot up recently due to a reduced harvest caused by too much rain. Mills are also flexing production toward sugar and away from alcohol due to the high global prices for that staple — all good news for an industry that has been under considerable financial stress. Phil Corzine is general manager of South American Soy, a global production, management, and investment company. His e-mail address is pcorzine@agpage.com., etc.
Corn, soybean yields: What’s in store for the future? BY KAY SHIPMAN FarmWeek
Yield contests demonstrate the ultimate achievement of farmer and seed, but increased knowledge continues to boost even average yields of corn and soybeans, according to University of Illinois and Missouri researchers during the recent Ag Masters Conference at the U of I. Emerson Nafziger, U of I Extension agronomist, attributed some of corn yield gains to improved genetics. However, weather also plays an important role, and until recently Illinois “had a pretty good stretch of weather,” he added. “Three-hundred-bushel (per acre) corn will need 33 inches of water (in the growing season). This year, we got more than 40 inches in some
‘Tillage will have little effect on corn productivity; the effect is the (soil) conditions you put the seed in.’ — Emerson Nafziger University of Illinois Extension agronomist
areas,” Nafziger said. Crop rotation will improve a farmer’s chance of obtaining higher corn yields; however, that yield advantage appears to be diminishing, according to Nafziger. A corn-soy rotation still offers a 5 to 10 percent yield advantage over continuous corn, he noted. High yields equate with high nitrogen in some farmers’ minds, but the “nitrogen rate is not the primary determinate for corn yield on highly productive soil,”
Nafziger said. Tillage is another factor, but Nafziger cautioned obtaining good soil conditions will be difficult next year. “Tillage will have little effect on corn productivity; the effect is the (soil) condition you put the seed in,” he explained. U of I yield studies on higher plant populations have been inconclusive. Trial data would show that a farmer might expect higher yields on fields with more
ISA, U of I to offer crop science scholarship A new scholarship for students pursuing a crop science degree is being offered by the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) crop sciences department in partnership with the Illinois Soybean Association (ISA). Scholarship applications for incoming freshmen are due Friday, while transfer student applications are due by March 1. “We have noticed in the last few years that enrollment in the crop science programs at the four state universities has declined. This will be detrimental for developing future university researchers who will concentrate on soybean research,” said ISA Chairman Ron Moore, a Roseville farmer. Scholarship recipients will be awarded $12,000 during
their first year, followed by $10,000 annually for up to three additional years if they meet renewal criteria. To help reduce the cost of tuition, recipients will receive additional assistance of up to $8,000 over four years. A scholarship potentially could totally $50,000 over four years. Scholarships may be used for tuition, fees, and other educational expenses. Recipients will be designated Illinois Soybean Association Scholars. Jason Emmert, ACES assistant dean of academic programs, is the primary contact for scholarship information. He encouraged students interested in science, regardless of background, to apply. Applicant criteria include: • An ACT test score of 28
or higher for incoming freshmen; • A grade point average of at least 3.4 for incoming transfer students already attending either the U of I or another university; • A demonstrated interest in the field of crop science; • A completed U of I admission application, specifying a major in crop sciences, by March 1 for transfer students; and • Fulfilled requirements by students transferring from within the U of I into the crop sciences department for fall 2010. The scholarship renewal criteria will include maintaining a grade point average of at least 3.4. Anyone interested in applying for the scholarship may call Emmert at 217-2444540.
plants, Nafziger said. However in 2009, researchers “got a very flat response on yields” from corn population studies in Urbana, he noted. Likewise, researchers have not found much of a yield response from cornfields with narrow rows, he added. The number of soybean seeds — not seed size — determine yield increases, according to Bill Wiebold, University of Missouri plant science professor. “Focus on increasing seed numbers,” he advised farmers. As for tweaking practices to increase soybean yields, farmers will find that to be more difficult. “Remember yields are
related to all year, not just one point. Yields are complex and change every day of the growing season. It is hard to isolate one management practice,” Wiebold said. Farmers face different challenges in increasing soybean yields than with corn yields, according to Wiebold. While corn growers can increase yields by increasing the number of plants to produce more ears, soybean growers have a difficult time increasing the number of pods per plant, he explained. When soybean plants are crowded in a field, fewer branches and branch nodes result, he said. “The number of pods per plant drops as stand density increases,” Wiebold said. “In lower plant populations, there are many pods on branches.” He advised farmers to focus on good farming practices. “No matter how great a farmer you are, you have to pay attention to the fundamentals,” Wiebold said.
Ag scholarship digest Heart of a Growing America Scholarship — 1st Farm Credit Services is offering 24 scholarships of $1,000 each. The application deadline is Feb. 16. Recipients must be graduating high school seniors who have been accepted into an agriculture curriculum or agriculture-related field at a university, college, or community college and either live or attend high school within 1st Farm Credit Services’ service territory. For an application and more information, visit a local 1st Farm Credit Services office or go online to {www.1stfarmcredit.com}. Westchester Foundation Ag Scholarship — The Westchester Foundation is awarding scholarships of a minimum of $1,000 each to graduating high school seniors who have been accepted or college students already enrolled in an agriculturerelated field of study or agribusiness at any accredited college, university, or community college. The application deadline is Feb. 1. Scholarships may be renewed annually for up to four years. For information and an application, go online to {www.westchester-group.com}.
FarmWeek Page 8 Monday, January 11, 2010
IFB IN ACTION
Young Leaders strive to recruit new members BY DANIEL GRANT FarmWeek
Young farmers not only represent the future of the ag industry, but they also are the future of Illinois Farm Bureau, according IFB Young Leader State Committee members. Young Leaders (YL), therefore, will make a push this year to recruit new members in Illinois. “We (Young Leaders) are the future of Farm Bureau,” said Alan Chesnut, Vermilion County, vice chairman of the YL Committee. “If we don’t prepare for the future, we could be at a disadvantage later on.” YL State Committee members, who met last week in Bloomington, hope to accomplish their goal by expanding existing county programs and establishing programs in counties that currently do not have an active YL program. There currently are 67 YL county committees in the state, according to Jason Bunting of Livingston County, who recently was selected as chairman of the YL State Committee for the second year in a row.
“One of our top goals is to increase the number of Young Leaders in the organization,” Bunting said. The goal this year is to recruit 70 to 80 new Young Leaders in the state. That would boost YL numbers by about 2 percent, Bunting said. The YL chairman also will be busy this year at the national level. Bunting recently was appointed to a two-year term on the American Farm Bureau Federation (AFBF) Young Farmer and Rancher Committee by AFBF President Bob Stallman. “It’s a good opportunity to represent Illinois on the committee,” said Bunting, who traveled this week to the AFBF annual meeting in Seattle. The AFBF Young Farmer and Rancher Committee is comprised of Farm Bureau members between the ages of 18 and 35. The goal of the program is to provide leadership development to build a more effective organization through education, problem solving, and network building. “It is important to ensure
that the future of agriculture is in good hands,” Stallman said. “I am confident these individuals will become great leaders as they have already given so much
back to their communities.” IFB Young Leaders this year also hope to get more involved with policy development at the state level. “We want a resolution to
come out of the (YL) committee,” said Tom Flack of Stephenson County, who is the chairman of the YL governmental affairs and commodities subcommittee.
40 members named to Action Teams Forty Farm Bureau members have been named by the Illinois Farm Bureau Board of Directors to serve on the 2010 IFB Action Teams. Action Team members will meet twice in 2010 to develop recommendations to the IFB board for statewide organization projects and programs in education, membership, quality of life, and public relations. Recent team projects include ag information signs at wineries and orchards on the Shawnee Hills Wine Trail, monetary rebates for safety/warning signs ordered by county Farm Bureaus, reusable membership tote bags, and converting the “Look, it’s a whatchamajig” brochure available at interstate highway visitor centers into a DVD. Team members, including chairmen and vice chairmen, and their county Farm Bureaus are: Education — Chairman Gail Pollard, Winnebago; Vice Chairman Pat Koelling, Washington; Eldon Baker, Fulton; Mike Chwasczinski, Washington; Richard Heinz, Peoria; Sharon Barr, Hancock; Bob Johnson, Grundy; Paul Mariman, Macon; Carleen Paul, Madison; Leonard Sheaffer, Lee; and Dale Wachtel, Effingham.
Membership — Chairman Dennis Verbeck, Henry; Vice Chairman Dave Krebel, Monroe; Josh Curry, Henry; Ross Prough, Greene; Jim Shanklin, Marshall-Putnam; Phil Butler and Paul Rickey, Warren-Henderson; and Darrin Storm, Shelby. Quality of Life — Chairman Greg Leigh, Fulton; Vice Chairman Carrie Titus, Henry; Carol Jerred and Marion Barr, Hancock; Carolyn Mason-Wilson, Edgar; Pat Titus, Douglas; Mike Brokaw, Christian; Elaine Kapraun, Woodford; David Wessel, Cass-Morgan; and Christina Lionts and Julie Kern-Morrison, Sangamon. Public Relations — Chairman Keith Mussman, Kankakee; Vice Chairman Connie Schneider, McLean; Diane Morris, Kendall; Jacob Streitmatter and David Headley, Peoria; James Ufkin and Steve Weber, Henry; Martha Zumwalt, Hancock; Bob Kapraun, Woodford; and Vernon Schiller, McHenry. Leading the Action Coordinating Council are Chairman Dennis Verbeck, Henry, and Vice Chairman Greg Leigh, Fulton. This is the 13th year for the Action Team program.
Monsanto Fund donates $50,000 for IAITC program The IAA Foundation has received $50,000 from the Monsanto Fund, a private foundation and the philanthropic arm of the Monsanto Co. The Monsanto Fund’s gift will match other funding and in-kind support for an Illinois Agriculture in the Classroom (IAITC) program. That program, Action Science through Agriculture, provides Illinois teachers with scientifically based resources to help students learn about the roles science and technology play in agriculture and society. “Monsanto has been a longtime supporter of Illinois Agriculture in the Classroom,” said Susan Moore, IAA Foundation director. “We are most grateful that its continued funding will help train more
teachers and educate more children about the science of producing food, fiber, and renewable fuel in modern agriculture, education that is as relevant as any they will receive.” “Monsanto is pleased to participate in Illinois Agriculture in the Classroom’s Action Science through Agriculture program,” said Mindy Whittle, Monsanto soybean industry affairs lead and member of the IAITC Executive Coalition. “We believe it is critical for children to have access to agricultural educational resources so that they can understand the important links between agriculture and science,” Whittle said. For more information about the IAA Foundation and IAITC, go online to {www.iaafoundation.org}.
Quinn names new ICC chairman Gov. Pat Quinn appointed Chicago alderman Manuel Flores chairman of the Illinois Commerce Commission (ICC) last week. Flores brings to his new position a record for advancing proenvironmental initiatives and a commitment to expanding broadband Internet access throughout Illinois, according to Quinn. Flores’ appointment requires Senate confirmation. Flores, who served as a prosecutor in the Cook County State’s Attorney’s Office, has worked to build Chicago’s green economy by pushing for LEED (Leadership in Energy and Environmental Design) certification in new developments and launching GreenEconomyChicago.com, an online social network to develop policy to promote a green marketplace. The ICC acts as a bridge between consumers and Illinois’ utility companies, seeking to balance the interests of consumers and service providers.
FarmWeek Page 9 Monday, January 11, 2010
FROM THE COUNTIES
B
UREAU — The annual meeting will be at 6 p.m. Thursday, Jan. 21, at the Bureau County Metro Center, 837 Park Ave. W., Princeton. Nic Anderson, business developer for the Illinois Livestock Development Group, will be the speaker. Cost is $5. Tickets must be purchased by Monday, Jan. 18. Call the Farm Bureau office at 815875-6468 for reservations or more information. • The Women’s Committee will sponsor a teacher ag awareness information dinner at 5:30 p.m. Tuesday, Jan. 26, at the Farm Bureau office. Available lessons about agriculture for classrooms will be available. Those educators who plan to attend should contact the Farm Bureau office by Monday, Jan. 18, for reservations. ROWN — Farm Bureau and Brown County Soil and Water Conservation District’s annual meeting will be at 6:30 p.m. Wednesday, Jan. 20, at the Knights of Columbus Hall, Mt. Sterling. Retired Judge David Slocum will be the speaker. Tickets are $6.50. Call the Farm Bureau office at 217-773-2634 for reservations or more information. UMBERLAND — The annual meeting will be at 6 p.m. Tuesday, Jan. 19, at Neoga Middle School. Dinner will be served. Cost is $5. Call the Farm Bureau office at 217-849-3031 for reservations or more information. ANCOCK — The Young Leaders from West-Central Illinois are invited to attend a Young Leader event Jan. 22-23 at Fun City, Burlington, Iowa. The outing includes an Agri-Quiz Bowl, ethanol plant tour, breakout sessions, indoor water park, arcade, laser tag, bowling, and
B
C
H
more. Call the Farm Bureau office at 217-357-3141 by Friday for reservations or more information. • The Hancock County Soil and Water Conservation District will have an open house from 8 a.m. to 5 p.m. Thursday, Jan. 21. A board of directors election will be held and door prizes will be awarded. ANKAKEE — Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development, will be the speaker at the winter ag breakfast meeting at 7 a.m. Thursday at the Iroquois Room, Kankakee Country Club. Cost is $9, which includes breakfast buffet. Call the Farm Bureau office at 815933-8337 for reservations or more information. EE — The annual meeting will be at 10 a.m. Thursday at the Farm Bureau office. A USDA Rural Development Energy for America program will be given. Call the Farm Bureau office at 857-3531 or e-mail leecfb@comcast.net for reservations or more information. • The Lee, Ogle, and Whiteside County Farm Bureaus and Sauk Valley Bank, will sponsor a family farms transition dinner program at 6 p.m. Wednesday, Jan. 27, at the Candlelight Inn, Sterling. Ron Hansen, University of Nebraska professor, will present a humorous and motivational program. Call the Farm Bureau office at 8573531 or e-mail leecfb@comcast.net by Friday, Jan. 22, for reservations or more information. IVINGSTON — The Legislative Committee and WJEZ Radio will host a Livingston County sheriff ’s candidate forum at 6:30 p.m. Thursday, Jan. 21, at the Pontiac Township High School auditorium. Call the Farm Bureau office for more information.
K
L
L
M
ASON — The On the Road seminar has been rescheduled for 9 a.m. Monday, Jan. 25, at the Farm Bureau office. Call the Farm Bureau office at 309-543-4451 by Thursday, Jan. 21, for reservations or more information. ENARD — Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speaker at an average crop revenue election meeting at 9 a.m. Tuesday, Jan. 19, at the Farm Bureau office. Call the Farm Bureau office at 632-2217 by Friday for reservations or more information. ONROE — Members are invited to meet the candidates for the primary election at 7 p.m. Tuesday, Jan. 19, at the Monroe County Annex. Call the Farm Bureau office for more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday, Jan. 20, for a roast beef lunch at the Farm Bureau office. Cost is $8 per person. David and Patricia Pence will provide the entertainment from “Now and Then” and introduce their Border Collie therapy dogs. A free-will offering will be taken. Call the Farm Bureau office at 217-532-6171 for more information. EORIA — The Peoria County Corn/Soy Promoters will have a membership appreciation dinner at 5:30 p.m. Tuesday at Gil’s Supper Club, Hanna City. • A family fun day will be at 11:30 a.m. at Mt. Hawley Bowl. Members may bowl three games for $5 and children ages 6-12 may bowl free. ERRY — Farm Bureau will sponsor a crop insurance seminar at 8 a.m. Tuesday, Feb. 2, at the Farm Bureau office. Breakfast will be served. Call the Farm Bureau office at 618-357-9355
M
M M
P
P
or e-mail perryfarmbureau@verizon.net for reservations by Tuesday, Jan. 26. OCK ISLAND — Illinois Farm Bureau’s Doug Yoder will present a crop insurance update Thursday, Feb. 11, beginning at 10 a.m. at the Milan Community Center in Milan. Lunch, sponsored by Country Financial agent Steve Sim, will follow. Call Sim at 309-764-3116 to register by Feb. 8. CHUYLER — The annual meeting will be at 6 p.m. Monday, Jan. 18, at the First United Methodist Church, Rushville. Alan Acheson will speak about his market study trip to China. Call the Farm Bureau office at 217-322-4353 by Tuesday for reservations or more information. TEPHENSON — Farm Bureau will sponsor a bus trip March 19 to the “Gathering of the Green” convention for John Deere collectors, restorers, and enthusiasts in Davenport, Iowa. Call the Farm Bureau office at 815-2323186 or visit the website at {www.stephensoncfb.org} for more information. • Farm Bureau will sponsor a bus trip March 23 to the John Deere Harvester Works and Kinze Manufacturing. Call the Farm Bureau office at 815-2323186 or visit the website at {www.stephensoncfb.org} for more information. ERMILION — Farm Bureau and WITY Radio will sponsor a market outlook seminar at 9:30 a.m. Monday, Jan. 18, at the Farm Bureau auditorium. Dale Durchholz, senior market analyst AgriVisor LLC, and Pete Manhart, Bates Commodities, will be the speakers. Blake Miller, Illini FS, will give a fertilizer price and supply outlook for spring 2010. Call the Farm Bureau at 217-442-8713 for more information.
R
S
S
V
W
ASHINGTON — Dale Durchholz, senior market analyst with AgriVisor LLC, and Keith Maschoff, Country Financial agent, will be the speakers at a market outlook meeting at 8 a.m. Tuesday, Jan. 19, at the Little Nashville Restaurant. Breakfast will be served. Call the Farm Bureau office at 618327-3081 by Tuesday for reservations or more information. • The annual meeting will be at 6:30 p.m. Monday, Jan. 25, at St. Michael’s Church, Radom. Tickets are $5 and must be purchased by Monday, Jan. 18. Call the Farm Bureau office at 618-327-3081 for more information. INNEBAGO — Boone, Carroll, DeKalb, Jo Daviess, Lee, McHenry, Ogle, Stephenson, Whiteside, and Winnebago County Farm Bureaus will have their Farm Bureau bowling tournament at 2 p.m. Saturday, Jan. 23, at Forest Hill Lanes, Rockford. The tournament will consist of children through adult ages with awards for high score in each division. Cost is $13 and $12 for children under 12, with free shoe rental. Call the Farm Bureau office at 815962-0653 for more information. • Boone and Winnebago County Farm Bureau Prime Timers will meet at noon Tuesday, Jan. 26, at the Winnebago County Farm Bureau office. Albert and Bonnie Scheider, Orangeville, will have a program and display of miniature one-room school houses. Lunch will be served. Cost is $14. Call the Farm Bureau office at 815-962-0653 by Tuesday, Jan. 19, for reservations or more information.
W
“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all managers, contact your county manager.
FarmWeek Page 10 Monday, January 11, 2010
PROFITABILITY
Technology can aid management decisions BY SID PARKS
Starting a new year provides us all a chance to wipe the slate clean while contemplating changes in our operations or work processes. One can evaluate what worked or didn’t work, while striving for better results. Many proSid Parks ducers, if not most, had a challenging growing season in 2009. High input prices caused some to modify plans, excess rainfall delayed planting and other
field activities, and coolerthan-normal temperatures caused the crop to mature slowly. All this, plus disease and lodging issues, contributed to a late harvest and for some, disappointing yields. With the challenges listed above, should anyone base important decisions on information gained in a production year such as 2009, or should you repeat those practices and hope next year is better? For example, did you observe any evidence of nitrogen deficiency in your corn? What form of N was applied and when? What were the environmental conditions when it was applied?
If you changed rates, method, source, or any other aspects of your fertility program this past year, one might conclude that was an incorrect decision if simply based on symptoms of N deficiency. However, our local airport recorded more than 50 inches of rain this year, which is well above average. How might that have impacted nitrogen availability? The excess rainfall may have contributed to the loss rather than any management decision. Today’s equipment likely allows the operator to document or record application information whether planting, applying crop protection prod-
ucts, or harvesting with a yield monitor. Advances in technology available to growers and ag retailers might help answer some of these questions, but inadequate knowledge of the process can further create problems. Those who are unable to do this successfully may make mistakes in their analysis and ultimately any conclusions drawn. I would encourage you to take the time to collect as much information as possible at the time the operation is being performed, as it is easy to forget when trying to answer why things turned out as they did. If you don’t have
tools to collect the information electronically, a paper note collected at the time can help. Your FS crop specialist has many tools available for them to use in helping make sound agronomic recommendations, including evaluating and implementing new practices. These may include technologies or processes for managing information that assist in decision-making for maximizing profitability while reducing grower risks. Sid Parks is GROWMARK’s manager of precision farming. He can be reached at sparks@growmark.com.
Niche market keeps Shelby County hog producer in business BY DANIEL GRANT FarmWeek
Heavy losses sustained by hog producers the past two years probably would have forced a Shelby County hog producer out of business — under normal circumstances. But the Storm family from Strasburg last year decided to take a different approach and began selling hogs to Niman Ranch, which promotes meat products from livestock that are raised without antibiotics or additional hormones. “With the cash market the way it was, we had to look for opportunities if we wanted to
continue to raise hogs,” said Darrin Storm, also an IFB Young Leader State Committee member. The Storms used little if any antibiotics on their small swine operation prior to contracting with Niman Ranch. So the transition was smooth, and it improved the bottom line on their farm.
options available
M A R K E T FA C T S
Feeder pig prices reported to USDA*
Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $31.60-$48 $41.06 $53-$56 $54.64 n/a n/a This Week Last Week 24,846 32,132 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $64.72 $59.82 $47.89 $44.27
Change 4.90 3.63
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week $84.27 $84.29
Prv. week $84.41 $84.54
Change -0.14 -0.25
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 94.90 93.30 1.60
Lamb prices Confirmed lamb and sheep sales This week 868 Last week 765 Last year 393 Wooled Slaughter Lambs: Choice and prine 2-3: 90-110 lb., $103-$110; 110-130 lbs., $99.00. Good and choice 1-2: 60-90 lbs., $125. Slaughter Ewes: Utility and good 1-3: $53.-$55. Cull and utility 1-2: $53.
Export inspections (Million bushels)
Week ending Soybeans Wheat 12-31-09 32.2 9.1 12-24-09 58.9 11.0 Last year 29.5 13.1 Season total 735.9 488.2 Previous season total 525.8 669.9 USDA projected total 1340 875 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
The move to antibioticproduc‘We had to look for opportuni- free tion to this ties if we wanted to continue point has not comproto raise hogs.’ mised the health of — Darrin Storm Storm’s Shelby County producer and Young Leader herd. “There are other things you “It added a premium to can use besides antibiotics,” what we were getting (from said Storm, who noted they the cash market),” Storm said. currently have about 110 head “Hopefully, down the road, of swine about two months we’ll be able to expand the from finishing out on their operation.” farm. had one pig we pulled EQIP new organic out“We because it was sick and we
Corn 20.3 31.3 23.9 534.4 540.9 2050
A new conservation option in the farm bill targets farmers with organic operations and those ready to transition to organic production. Interested farmers should contact their local Natural Resources Conservation Service (NRCS) office before Friday’s sign-up deadline. NRCS’ Environmental Quality Incentives Program (EQIP) now offers conservation technical help and financial assistance for organic operators. Illinois NRCS State Conservationist Bill Gradle noted NRCS’ specialists and new EQIP options can address organic farmers’ needs, such as controlling soil erosion, managing nutrients, and improving water quality. While EQIP sign-up is continuous, Gradle reminded producers that the deadline for submitting applications is Friday (Jan. 15). For more information about the EQIP organic initiative, go online to {www.il.nrcs.usda.gov} or stop by your local NRCS office.
gave it penicillin. We can use that hog (for meat) for our own family, so it’s not like we lost anything.” The Storms are required to use certain breeds for Niman farms, and they had to change their farrowing house. But the changes were minor compared to the advantages they discovered in the niche market. “They (at Niman Ranch) have certain breed lines they want you to run, and we changed our operation a little bit, but not much,” Storm added. But, the bottom line is “We were able to stay in the hog market.”
Milk price posts another gain The Class III price for milk adjusted to 3.5 percent butterfat for the month of December was $14.98 per hundredweight. This is a 90-cent increase from the previous month and the seventh month of positive pricing. Milk prices have posted a $5 price improvement since the summer doldrums. A good holiday season with lots of cooking helped spur demand for dairy products. Prices are approaching, and in many cases exceeding, breakeven levels. Producers are hoping this price trend continues as cows start to put more milk in the tank during the winter months.
FarmWeek Page 11 Monday, January 11, 2010
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T Too early to tell new crop acreage Even as farmers in some parts of the Midwest struggle to finish the 2009 harvest, new-crop plantings have started to “pop up” on traders‘ radar screens. USDA will release its first estimate of winter wheat plantings on Jan. 12, but the mix of corn and soybean plantings is garnering even more interest than wheat. In December, widely followed Informa projected a 3million-acre increase in corn plantings and a 500,000-acre decline in soybeans. Just this last week, Monsanto projected a 1-million-acre increase in corn and a 2.5-million-acre decline in soybeans. Farm Futures magazine surveyed its readers in December, and found they intended to plant 3.1 million more corn acres. The surprise was the intention to plant 2.5 million more soybeans. The magazine also found winter wheat plantings could drop nearly 5 million acres, most of which was in the soft red class. The late harvest, lack of fall tillage, lower rates of fertilizer application, and large South American soybean crops all figure into the various perspectives of planting expectations. By the time spring arrives, each of those could have dramatically different implica-
Basis charts
tions, changing the mix of plantings for the 2010 crops. A warm, dry spring would go an especially long way toward cementing the possibility of seeing a big increase in corn plantings. That would allow necessary tillage to get completed and fertilizers to be applied. Some analysts argue that rising demand for ethanol dictates the need for an increase in corn plantings in 2010, just as it did in 2007. That attitude may inhibit speculative selling of corn, altering the corn/soybean price ratio if South America does have the large crops many currently foresee. But, as much as everyone wants to believe the South American crops will be big — and thus result in severely curtailed demand for U.S. soybeans and products — it wasn’t until late February last year that the market realized the developing problem in Argentina. Problems there, and persistence of higher soybean prices, likely would swing plantings back toward soybeans this spring. One thing we do know is that a significant cutback in winter wheat plantings, especially soft red plantings, doesn’t necessarily increase the aggregate planting of corn and soybeans. More than half of the soft wheat acreage is double-cropped, normally with soybeans. Given the weather problems in the southern Corn Belt and the midsouth where most of the acreage is double-cropped, we expect to see either a single crop of corn or soybeans sown instead of a second crop of soybeans. That doesn’t add to total acreage. Amid all of the arguments as to why acreage will shift one way or another, we believe there’s little clue to what this year’s planting mix might be at this time. For now, we see a variety of alternatives, somewhat equally balanced. It’s just too early to tell what will happen. AgriVisor endorses crop insurance by
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number
309-557-2274
Cents per bu.
2009 crop: The shortterm trend still points higher. If March futures can penetrate the $4.26 1/2 resistance, it should allow prices to trigger our recommendation to boost sales to 50 percent when March futures reach $4.30. Check the Cash Strategist Hotline for changes after the Tuesday USDA report. Do not plan to store corn beyond March/April unless you are confident of its quality. 2010 crop: We are considering initiating sales if December 2010 futures reach $4.60. Check the Cash Strategist Hotline frequently for a specific recommendation. Fundamentals: The extremely cold temperatures and snow across the Midwest probably will delay harvest of most of the remaining crops until later in the winter, maybe even into early spring. While the January report will help clarify the supply, there will be some doubt about the size of the crop until the March grain stocks report — at the soonest.
Soybean Strategy 2009 crop: A March futures close below $10 would tilt the odds against the possibility of seeing new highs this winter. Until then, there’s still a possibility prices could reach a new high. Leave an order to boost sales to 50 percent if March futures hit $11.10. However, given the changes in the market this past week, check the Cash Strategist Hotline often for a shift in strategy. 2010 crop: Given changes that may be occurring in the soybean complex, prices may not do much better than $10 on November 2010 futures. Check the Cash Strategist Hotline occasionally for a specific recommendation. Fundamentals: Chinese moves to slow economic growth have uncertain implications. But they may be difficult to overcome from a psychological perspective. Brazilian growing conditions have been good enough to cause the government to raise its production estimate slightly.
Argentina’s drought has ended, but persistent rains are causing some flooding.
Wheat Strategy 2009 crop: Wheat action remains volatile, but the market may get a better sense of direction after Tuesday’s USDA report. If prices hold above $5.54 on the Chicago March contract, it would open the door for the market to reach our $5.68 target. Make catch-up sales at that level. Hold off additional sales until after the 20-week low due by early February.
2010 crop: Continue to use a rally to $6.15 on the Chicago July contract to make a 25 percent sale. Check Cash Strategist Hotline daily as this target could be adjusted at any time. Fundamentals: Dismal export business continues to be reflected in the weekly sales report. The most recent numbers came in at 93,400 million metric tons (93.4 billions bushels), below the low end of mediocre expectations of 200,000 to 500,000 million tons. Both soft red and hard red wheat from the U.S. continue to command a premium to wheat from some other countries.
FarmWeek Page 12 Monday, January 11, 2010
PERSPECTIVES
BUZZZZZ, Winter house warming becomes survival activity for honey bees As I was growing up on a farm in the state of Kansas, a bright but cold, sunny day in January often prompted my father to repeat an old saw relative to weather. With an air of authority he would announce: “As the days grow longer, the cold grows stronger.” The truth in the old saying is not a happy thought. The increased TOM TURPIN amount of daylight is a sure indicator that spring is on the way, but consistent warmer temperatures will take some time to get here. Meteorologically, that is because the cold captured in frozen soil and water, especially in more northern regions, will override the increased warming capacity of the sun to determine atmospheric temperatures. At least for a few weeks. But as is always the case following the December equinox, the sun moves a little higher in the sky each day. Thus, the days get longer and the warming on our part of the earth increases. And once again the spring and summer growing seasons are upon us. In the meantime, honey bee colonies, like Boy Scouts, have to be prepared. So even though the cold is stronger during January, honey bees are planning for warmer days ahead. Honey bees, like all insects, are coldblooded organisms that cannot function when temperatures are low. For most insects, the temperature threshold for biological activity is around 50 degrees Fahrenheit (F). Below that
temperature, not much happens in the insect world. No walking, no flying, no feeding. Furthermore, when temperatures are below 50 degrees for an extended period of time such as in winter, insects must have a mechanism for coping. Insect species that live in temperate and colder climates do. When temperatures turn cold, most insects enter a state of suspended animation, either hibernation or diapause. A few insect species fly to warmer climes. A small number of insect species, such as cockroaches and grain beetles, live in buildings where temperatures are kept at acceptable levels. Some social insects, such as ants, termites, and honey bees, survive winters as colonies. Many ants and termites have nests deep enough in the ground so that temperatures remain at acceptable levels. Honey bees, on the other hand, live in nests above ground where temperatures frequently drop below survival levels. So how do honey bee colonies overcome the threat of Old Man Winter? They use a process known as clustering. Honey bee clustering works this way. When the temperature drops below 57 F, the bees begin to congregate in areas of the hive where the comb contains stored food reserves of honey and pollen. Imagine that the bees form a basketball-shaped mass. The bees on the surface of that imaginary ball form an insulating shell one to three inches deep by filling all of the spaces, including empty cells in the comb. On the inside of the ball, the bees are less compact so
they can move around. As air temperature decreases, the cluster contracts in size. Conversely, as temperatures increase, the cluster expands. The heat of metabolism of the bees accumulates within the cluster. The heat produced and the expansion and contraction of the size of the cluster allows the bees to maintain a favorable temperature in spite of the air temperature. As the days begin to get longer in January, even as the cold gets stronger, the bees begin brood-rearing — the production of young bees. This is necessary so that the hive has newly emerged bees to collect nectar and pollen when the plants begin to bloom in the spring. The problem is that honey bee eggs and larvae — like chicken eggs and
baby chicks — need a high temperature of around 96 F during incubation or brood-rearing, as it is called in insects. So if a honey bee colony has honey and pollen and if the cluster is able to maintain a temperature around 96 degrees, the queen begins to lay eggs, even in the frigid temperatures of January. All of this gives new meaning to the idea of a house warming — to bees keeping the house warm during the cold days of January is not just for survival of individual bees. It also means the colony has a good start for success when the flowers bloom in spring and summer. Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.
AFBF: Going beyond the farm gateway in 2010 This week Farm Bureau members from across the country are in Seattle, Wash., for the American Farm Bureau Federation’s 91st annual meeting. With the theme “Passage to Success,” the meeting through Wednesday is offering participants opportunities to play a TRACY bigger role in TAYLOR GRONDINE the global community while achieving greater success at home. In 1919, at AFBF’s organizing meeting in Chicago, the president of the New York Farm Bureau, S. L. Strivings, said, “Farmers must get past their own gateways and get out and see what is going on in the
world. We must put agriculture into proper relationship with the rest of the world.” Fast forward 91 years. Farm Bureau remains a grassroots organization with the same ideals and principles of strengthening the lives of rural Americans and building strong, prosperous farm communities. But, U.S. farmers have obtained a predominant status in global affairs. They’ve passed their own gateways, as Mr. Strivings encouraged, and are dealing with such issues as world trade, a global customer base, and, more importantly now than ever, their public image both at home and
throughout the world. While many farmers’ challenges remain the same as they were in 1919: weather, government regulation, and commodity prices, more hurdles have been added. No longer can farmers stop their work after a day in the field. Instead, they must wear many hats, that of a teacher, economist, scientist, lobbyist, and spokesperson. Today, public image and consumer education play as big of a role in agriculture as the tractor and plow once did. What hasn’t changed is the need for farmers and ranchers to go beyond their farm gates to see what is going on in the
world. Today, exports are running at a record pace and are the key to prosperity for agriculture. Yet another key is how U.S. farmers are viewed around the world, especially during World Trade Organization negotiations and the more recent Copenhagen climate change talks. On the home front, consumer education about livestock care, food safety, and biotechnology is just as important. As animal welfare groups and others continue to wage unfounded war on farmers and ranchers, engaging in dialogue with consumers is not only important, it is essential. Unimaginable 90 years ago, the Internet has become a major component of agriculture. Through blogs, Twitter, and
Facebook producers have unparallel access to consumers beyond the farm gate. During the AFBF annual meeting business session, delegates are discussing and developing policy on such issues as climate change, government regulation, and commodity prices. But AFBF leaders also are providing attendees the tools to go beyond their gateways and handle today’s challenges, such as global perception and consumer education — all while maintaining the same ideals and mission AFBF’s founders envisioned in 1919. Mr. Strivings would be proud. Tracy Taylor Grondine is director of media relations for the American Farm Bureau Federation. Her e-mail address is tracyg@fb.org.