FarmWeek January 25 2010

USE OF BT CORN and other practices have led to a significant drop in European corn borers, but other pests lurk. ....5

BIOMASS CROP MISCANTHUS took a major leap forward with the unveiling of a mechanical planter and harvester at the U of I. ................6

I F B , S OY B E A N p r o d u c e r groups, and others are responding to the needs of earthquake-stricken Haiti. ....7

Monday, January 25, 2010

Two sections Volume 38, No. 4

NCGA takes no-go stance on cap-and-trade plan

BY MARTIN ROSS FarmWeek

After months of evaluating the pros, cons, and controversies of congressional climate proposals, the National Corn Growers Association (NCGA) last week joined Farm Bureau in opposing U.S. House “capand-trade” measures.

Illinois Corn Growers Association President Tim

Lenz told FarmWeek NCGA had not so much taken a “neutral” stance toward the House measure — as it had communicated to the public — as it had been “undecided.”

NCGA also was awaiting USDA‘s analysis of cap-andtrade implications and an NCGA-authorized Informa Economics study Lenz deemed crucial to identifying “the best

deal for ag we could get.”

Both recently released studies project significant conversion of cropland into trees under a system of greenhouse gas (GHG) emissions caps and marketable carbon “offsets.“ Informa concluded all U.S. corn growers would see higher energy/input costs under the House bill, while many producers, particularly in the

READY OR NOT

Steve Frank, left, of FarmChem Corp, demonstrates some one-way valves for use on mini-bulk tanks to Duane Bracke of Rock River Lumber and Grain in Prophetstown during the Illinois Fertilizer and Chemical Association annual convention and trade show last week in Peoria. The valves, along with tamper-proof seals, were developed to meet new Environmental Protection Agency requirements for mini-bulk tanks that begin in 2011. Read convention coverage on page 5. (Photo by Daniel Grant)

northern Corn Belt, would not be able to market offsets.

Also of concern was the U.S. Environmental Protection Agency‘s (EPA) threat to initiate its own GHG regulations if Congress failed to pass climate legislation, Lenz related.

The Strasburg producer noted concerns about whether farm state lawmakers would be able to both block cap and trade and overturn EPA’s greenhouse “endangerment finding” — which could affect livestock and other operations — under a “Democratic-controlled House.”

“We wanted to be at the table, but we wanted to make sure we had the right information — how (cap-and-trade legislation) was going to affect our growers,” Lenz said.

“Once it came out that it was not going to be beneficial to our growers in the long run, we felt that we could no longer stay ‘neutral’ and that we had to oppose it.“ He reported corn groups are “still in negotiations” with the Senate, where cap-andtrade proposals have stalled and the election of Republican Scott Brown to replace the late Sen. Edward Kennedy (DMass.) has cast doubt on passage of a Democrat-backed plan.

But even without congressional action, “you still have to deal with EPA” and other “unleashed activists” within the administration, Lenz said.

Senate Ag Chairman Blanche Lincoln (D-Ark.) last week joined with Sen. Lisa Murkowski (R-Alaska) in efforts to block EPA GHG regulation under the federal Clean Air Act. According to the NCGAInforma study, farm cost increases would be relatively minor during the early years of cap-and-trade implementation.

However, as fertilizer and fuel manufacturers and energy providers face growing emissions compliance costs, prices will significantly increase, placing a proportional burden on growers, the study warned.

Lenz noted House provisions which offer fertilizer producers initial offsets to help them transition to new regulatory costs and contain nutrient prices. However, companies could sell offsets to other “polluters” rather than applying offsets to reducing product prices, he suggested.

At the same time, USDA Chief Economist Joseph Glauber projected nearly 35 million U.S. crop acres could See NCGA, page 2

IFB signs letter Periodicals: Time Valued

Ag groups urge EPA to apply science in atrazine study

BY KAY SHIPMAN FarmWeek

Fifty ag groups, including Illinois Farm Bureau, recently urged Environmental Protection Agency (EPA) Administrator Lisa Jackson to use science in her agency’s ongoing atrazine study.

EPA is studying potential health risks related to atrazine. At the end of the review, the agency will determine if it needs to revise its position on atrazine or if current use restrictions are sufficient.

IFB, Illinois Corn Growers Association, Illinois Fertilizer and Chemical Association, and other members of the Triazine Network nationwide responded to a Jan. 5 letter to Jackson from environmental activists claiming to represent mainstream agriculture.

The activists’ letter made it appear “that U.S. agriculture is not behind the safe use of atrazine,” said Jere White, executive director of the Kansas Corn Growers, in a media teleconference last week.

FarmWeek on the web: FarmWeekNow.com

“The reality is that agriculture is behind the use of science,” White told reporters.

Ag groups have supported the safety and scientific approval of atrazine over the past 15 years through three presidential administrations, starting with President Clinton, according to the letter.

A conclusion to the current atrazine study won’t come anytime soon. EPA’s timeline includes a scientific evaluation starting in September of possible cancer-

causing effects related to atrazine.

EPA will use a scientific advisory panel that was established under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) to conduct the review.

However, the agency is not conducting a new study; it will review scientific literature available before its 2003 decision to reregister atrazine as well as new studies issued between 2003 and 2010, according to an EPA spokesman.

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

FarmWeek Page 2 Monday, January 25, 2010

Quick Takes FRIGID WEATHER AHEAD? — Frigid temperatures that gripped Illinois and much of the U.S. the first half of this month could return in February.

WSI Corp., a weather forecast service, last week projected temperatures from February through April will be cooler than normal in the eastern two-thirds of the U.S. “After a brief respite from the bitter cold in late January, this rather extreme winter appears to be gearing up for an encore in February,” said Todd Crawford, WSI chief meteorologist.

“All of the important weather and climate factors that we monitor suggest winter will be coming back with a vengeance,” he said.

SUPREME COURT REFUSES TO CLOSE CANAL — The U.S. Supreme Court last week denied an attempt by Michigan and other Great Lakes states to immediately close the canal connecting Lake Michigan and the Illinois River. The states’ attorneys general said they wanted the closing to prevent Asian carp from migrating into the Great Lakes.

The court noted that it had ruled only on the preliminary injunction seeking immediate closure. Illinois Attorney General Lisa Madigan has argued the closure would devastate commercial shipping and passenger industries.

Hours after the court ruling was released, the U.S. Army Corps of Engineers announced Asian carp DNA had been found in Lake Michigan; however, no live or dead Asian carp has been seen in the lake.

GROUP BACKS NOMINEES — A coalition of food and ag groups led by the National Pork Producers Council urged quick U.S. Senate confirmation of nominees for two key positions with the Office of the U.S. Trade Representative (USTR).

In a letter signed by 42 organizations, the coalition asked that the full Senate approve Michael Punke as deputy trade representative and Isi Siddiqui as USTR chief ag negotiator. “The U.S. needs strong leadership in these key positions, and these gentlemen are eminently qualified to provide it,” the letter stated.

The Senate Finance Committee has approved both nominees. Punke served as international trade counsel with the committee, followed by four years of dealing with international affairs in the Clinton administration, including two years as senior policy adviser for thenUSTR Ambassador Mickey Kantor.

Siddiqui also served in the Clinton administration, as USDA deputy undersecretary and undersecretary for marketing and regulatory programs and as senior trade adviser to then-Ag Secretary Dan Glickman. He also worked with USTR and represented USDA in ag trade negotiations.

(ISSN0197-6680) Vol. 38 No. 4

January 25, 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.

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

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TRADE/POLICY

Nelson to lead trade advisory panel

BY MARTIN ROSS FarmWeek

Illinois Farm Bureau President Philip Nelson is taking on a new global mission, and he hopes to enlist Congress’ aid in helping make it a success.

As new chairman of the American Farm Bureau Federation’s (AFBF) Trade Advisory Committee, Nelson will help Farm Bureau evaluate prospects for a successful World Trade Organization (WTO) Doha Round, investigate Asian trade issues, and raise public awareness on the importance of trade.

Nelson takes the reins at the committee’s March meeting.

He expects congressional renewal of now-lapsed trade promotion authority (TPA) — the presidential power to negotiate trade agreements without fear of potentially deal-breaking legislative amendments — to be “high atop the list” of committee priorities.

TPA, which requires a straight up-or-down vote for U.S.-negotiated agreements, expired in 2007.

Nelson fears a lack of administration “fast track” authority could endanger delicately crafted Colombian, Panamanian, and South Korean free trade agreements (FTAs) Philip Nelson awaiting congressional approval and future confidence in trade pacts negotiated with the U.S. “I don’t care who or what party is in charge — we need to have that trade negotiating authority,” he said last week.

“A second, probably more ambitious goal, is to see if we’re going to get any movement in the Doha Round.

“It’s critical at this juncture to remove some of the trade barriers we fight worldwide.

One of the stumbling blocks in the Doha Round has been trying to get China and India to make concessions that will allow trade to flow both ways.”

A new report by The Heritage Foundation and The Wall Street Journal warns U.S. “lead-

ership in free trade is likely to be further undermined by ‘Buy American’ provisions in (2009) stimulus legislation and failure to pursue previously agreed free trade agreements.”

Trade Advisory Committee members will explore market access issues and related trade barriers during a planned tour of China and Korea.

The group expects to address tariff and “phytosanitary” (health- and safetybased) import barriers during a September meeting with WTO Director-General Pascal Lamy in Geneva.

Domestically, Nelson, who was re-elected to the AFBF board earlier this month, stressed the panel will work to “get in front of consumers and voters in this country about how important trade really is.”

“In Illinois, a third of basically everything we grow ends up in the export marketplace,” he noted.

“If you don’t have a balance of trade and take down some of these trade barriers, it has a dramatic impact on our bottom line.”

Vague direction, iffy science raise climate concerns Armed with a vague pledge to contain climate change and facing growing skepticism toward international data on “global warming,” U.S. policymakers and world leaders may be hard-put to develop nearterm climate policies — or at least sound ones.

International delegates emerged from a recent Copenhagen climate summit with a general, non-binding threepage agreement that essentially reiterates a commitment to limit any future average world temperature increase to 3.6 degrees Fahrenheit, reported American Farm Bureau Federation climate policy specialist Russell Williams.

The agreement seeks further discussions through 2015 — three years beyond expiration of the 1997 Kyoto Protocol, a climate pact the U.S. never joined. Williams, who attended the Copenhagen sum-

mit, characterized the effort as “an unmitigated failure.”

“From our perspective, this was the best outcome we could have hoped for, which was basically nothing,” he told FarmWeek. “As far as the debate here, there’s going to be another (climate) meeting in Mexico City in December, so the Senate has until December to work on it. In light of the (2010 congressional) election situation, I’m not sure they can get anything done by then.

“Globally, the state of negotiations is at kind of a standoff. The debate in Copenhagen consisted primarily of developed against developing countries. That’s not going to go away any time soon.“ Further doubts emerged with last week’s report of key errors in the 2007 Intergovernmental Panel on Climate Change report, which has driven U.S. cap-and-trade propos-

NCGA Continued from page 1 be converted to forests or perennial grasses by 2050 under House proposals that reward practices that trap the greatest amount of carbon dioxide.

While Informa cites continuous no-till as another major offset “opportunity,” it warned growers unable to adopt no-till will see soaring cost increases with no benefits, further fueling the temptation to “farm the carbon” through cropland conversion, Lenz suggested.

“That kind of puts a nail into the coffin,” he maintained.

“You cannot switch 35 million acres of cropland and honestly think that’s not going to affect food prices or affect the poorest members of society.”

als. For example, the report claims Himalayan glaciers could disappear by 2035; authors meant to forecast meltdown by 2305.

While such errors allegedly were unintentional, the incident follows last year’s flap over e-mails suggesting scientists have suppressed data that contradicts claims of growing climate change.

According to environmental policy adviser Christopher Horner, 1985-2000 was the hottest period in recorded history. But data collection focused on urban European and U.S. locations, with no measurements taken at crucial Siberian temperature stations, documenting an “urban heat island effect” but offering little evidence of widespread warming.

Further, carbon dioxide (CO2), a greenhouse gas linked with climate change, usually is present at higher levels when atmospheric temperatures are higher. Thus, elevated CO2 levels do not necessarily point to human-driven climate change, Horner said.

While he does not dismiss the basic concept of climate change, Illinois Corn Growers Association President Tim Lenz warned, “Let’s not make our whole nation noncompetitive when we don’t know that (climate regulations) would do any good,” Lenz argued. — Martin Ross

FarmWeek Page 3 Monday, January 25, 2010

EMERGING ISSUES

Ag groups seek public’s Survey: Most high school ag grads enter community colleges perception of farmers majors, the percentage was slightly higher at 76 percent.

Most 2009 high school graduates who In comparison, 31 percent of all high studied agriculture in high school continschool ag grads enrolled in a university. ued their education at the collegiate level About 24 percent of graduates majoring in in the fall; however, only about 20 percent agriculture enrolled in a university. enrolled as ag majors, according to a recent Runner noted a large increase in the numsurvey of Illinois high school ag teachers. ber of high school graduates expressing Jay Runner, coordinator interest in teaching agriculwith Facilitating Coordinature. Four percent of all tion in Agricultural Educahigh school graduates are tion (FCAE), released the ‘The purpose of high majoring in ag ed. survey results at a recent “We know how important school is to give stumeeting of the Illinois it is to grow our own teachd e n t s a c h a n c e t o ers,” Runner said. “That is a Leadership Council for Agricultural Education experiment and de- major increase.” and the Illinois Committee cide if they’re interThe ag ed groups did not for Agricultural Educaappear concerned that only ested in a career.’ tion.

21 percent of high school A total of 295out of ag grads were pursuing agri— Jay Runner culture degrees or starting 319 high schools with Facilitating Coordination ag/horticulture programs ag careers. Of all high in Agricultural Education responded to the survey. school ag grads, less than 1 Statewide, 11,987 gradupercent went directly into ates in 2009 took at least farming after high school. one ag course during their high school “The purpose of high school is to give careers. students a chance to experiment and decide if The 2009 influx of grads on community they’re interested in a career,” Runner college campuses was underscored by the explained. survey results.

Several committee members added the About 70 percent of all high school ag graduates, no matter what their career choice, will be better consumers because they will grads enrolled in a community college last have some knowledge about agriculture. fall. Of those students enrolling as ag

BY KAY SHIPMAN FarmWeek

Hayseed? Mega-farmer? Factory farmer? Family operator?

Illinois Farm Bureau and several state commodity groups want to evaluate the public’s image of the modern “farmer” so they can better communicate with non-farmers.

The groups recently started a project to determine the public’s view of farmers and use that information to develop “best management practices for communicating with non-farmers in support of agriculture,” said Dennis Vercler, IFB director of news and communications.

In addition to IFB, the organizations involved with the project are the Illinois Soybean Association, the Illinois Corn Marketing Board, the Illinois Pork Producers Association (IPPA), and the Illinois Beef Association.

“We’re trying to discover the new public perception of the farmer — because image drives all specific issues,” Vercler clarified.

The project is in the early stage and much information needs to be gathered, he said. The goal will be to develop information that may be used by all commodity groups.

Milwaukee-based Morgan and Myers public relations agency and the Roper research firm are working on the program. Initial survey results will be available in March.

Apparently, the public has a different perspective of a “farmer” than it does of a “commercial farmer,” according to Rodney Weinzierl, executive director of the Illinois Corn Growers Association.

“We don’t understand what is causing the change (in perception) when you change the term and what key words to use or not use in messages,” Weinzierl added.

Jim Kaitschuk, IPPA executive director, noted his association has worked on producers’ image for several years. “This plan would create a baseline platform for work in the future,” he said. — Kay Shipman

New farmers find higher credit limits available through IFA The economic downturn may have tightened some credit, but beginning farmers are finding the Illinois Finance Authority (IFA) has raised its cap on what firsttime farmers Eric Reed may borrow through the beginning farmer bond program.

Last year, Gov. Pat Quinn signed legislation that raised

the limit on beginning farmer bonds through IFA. That action, a legislative priority for Illinois Farm Bureau, brought state law in compliance with the higher loan limits specified in the farm bill.

Eligible beginning farmers in Illinois now may borrow up to $470,100, nearly double the previous limit of $250,000, according to Eric Reed, IFA agricultural funding manager.

Although the higher limit took effect in mid-August, Reed told FarmWeek that he’s encountered some leaders and

young farmers who weren’t aware the limit cap had increased.

The “bread and butter client” for the beginning farmer bond program is a farm family with a recent college graduate who wants to join the farming operation, Reed said.

It is key for an interested farmer to meet the beginning farmer bond eligibility requirements.

An eligible borrower must be at least 18 years old, an Illinois resident, have a net worth of less than $500,000, and own

little or no farmland.

IFA’s definition of “little” farmland varies from county to county, depending on a county’s median-size farm. For example in McLean County, an eligible borrower could own no more than 92.1 acres, which is less than 30 percent of the size of the median farm.

“One eligibility misnomer is an experience requirement,” Reed said. “The program does not require demonstrated farm experience as long as the land purchase will bring you into

farming,” he added.

Since 2004 when IFA was created, it has helped loan $54.6 million to beginning farmers through the beginning farmer bond program.

For more information about all IFA programs, including the beginning farmer bond program, go online to {www.ilfa.com/products/agriculture/ programs.html#BF}.

More details about the beginning farmer bond program are available by clicking on the “More Information” link. —Kay Shipman

Workshop to focus on biomass conversion to heat, electricity A Biomass Conversion to Heat and Electricity Workshop will cover conversion of solid biomass into heat and electricity and the supply chain components.

The workshop will be March 11-12, at Heartland Community College, Normal.

The early registration deadline is Feb. 19.

Workshop participants will be asked to help identify the bottlenecks, challenges, and opportunities for research and for commercialization.

Featured speakers include: Colleen Callahan, Illinois Rural Development director;

Bill Johnson, Alliant Energy biofuel development manager; and John Regalbuto, University of Illinois chemical engineering professor.

Four panel discussions will cover: views from end users of biomass, technology and equipment to transform biomass, systems and marketing to create a new economy, and relevant policies and environmental regulations.

Seating is limited and early registration is encouraged.

The early registration fee is $80 and includes lunches and materials.

After Feb. 19, the fee increases to $120.

To register, go online to {http://go.illinois.edu/biomas sworkshop} or call 309-2688160.

For more details, go online to {www.bioenergy.illinois.

edu/news/biomass.html} or contact Natalie Bosecker at natalieb@illinois.edu, 217244-9273.

Sponsors include the University of Illinois; Western

Illinois University; Illinois State University; Heartland Community College; Chip Energy, Goodfield; and Agricultural Watershed Institute, Decatur.

Community college network to expand ‘green’ job training Gov. Pat Quinn announced last week a $1.7 million state grant for the Illinois Community College Sustainability Network (ICCSN) to expand education and training for “green” jobs.

Money will be used to estab-

lish green jobs centers at Southwestern Illinois College’s Belleville campus, the College of Lake County, Grayslake, and Wilbur Wright College, Chicago.

ICCSN is a consortium of community colleges focused

on advancing students’ careers in renewable energy and energy efficiency.

The state is providing funding to 48 Illinois community colleges to help develop innovative programs in renewable energy and energy efficiency.

FarmWeek Page 4 Monday, January 25, 2010

RISK MANAGEMENT

Disaster assistance sensitive, frustrating issue

BY MARTIN ROSS FarmWeek

Southern producers are “in a world of hurt” and badly in need of timely assistance, American Farm Bureau Federation (AFBF) policy specialist Tara Smith told FarmWeek.

At the same time, Smith acknowledges the issue of socalled “ad hoc” disaster aid is a sensitive one given prospective standing assistance under the 2008 farm bill and concerns about Congress potentially reopening the farm bill as part of the assistance process.

Earlier this month, AFBF farmer delegates supported ad hoc assistance for both quality and yield losses “which includes timely delivery, without opening the 2008 farm bill, and provides assistance to all segments of agriculture.”

Senate Ag Chairman Blanche Lincoln (D-Ark.) and others are sponsoring assistance measures, and AFBF in a letter asked the proposals be tweaked to take into account its concerns.

Illinois Farm Bureau President Philip Nelson noted southern states‘ “frustration” with the supplemental revenue assistance (SURE) program, which was created as a new mechanism for delivering disaster protection. Like other new programs, USDA only recently issued final SURE rules, and sign-up began Jan. 4.

In addition, southern producers are unsure whether the estimated $5 billion in SURE funds available over the life of the current farm bill will address current needs, he said.

“There is going to be

USDA offers SURE loss calculator USDA has unveiled a web-based crop program payment calculator to help producers determine the financial benefits they may receive under the Supplemental Revenue Assistance Payments (SURE) program.

The calculator, designed by USDA’s Farm Service Agency (FSA), collects information about farming operations, including planted acreage, actual production, insurance coverage data, and other federal disaster payments. The data are used to calculate an estimated crop loss payment.

The calculator provides an estimated 2008 program payment to help producers better understand what they may qualify for under SURE, but it does not constitute an application for the program.

The calculator is available on the FSA website at {www.fsa.usda.gov/sure}. For more information or to apply for SURE, producers should visit their FSA county office.

debate on this ad hoc assistance, but we have been vehemently opposed to opening the farm bill to address it,” Nelson said.

Given last year’s production and harvest challenges, southern growers are concerned about the “timing” of SURE implementation, Smith said.

Because of program structure, SURE payments will not reach producers for at least a year after a reported disaster — “It’s not the timeliest assistance,” she said.

And SURE basically provides “a bump-up in crop insurance,” requiring farm participation in and designed to

complement risk management policies or programs.

Smith stressed Southeast crop insurance coverage “isn’t what it is in the Midwest.”

Policies are not available for many farmers, and higher “buy-up” coverage needed to ensure effective protection is cost-prohibitive for southern growers, she said.

AFBF also is concerned by Senate provisions that would allow only counties that have received disaster declarations

by Nov. 17, 2009, to be eligible for program crop assistance.

“This arbitrary cutoff date could prevent some of our hardest-hit farmers and ranchers from receiving assistance, and we urge you to allow all 2009 disaster counties to be eligible,” the Farm Bureau letter stated.

AGR-Lite valuable option for protecting value?

In a new era of risk management, producers looking to move beyond Illinois’ corn-and-bean “monoculture” may fear culture shock.

But according to Roger Schnitzler, an agent with Peoria-based FARM Insurance Co., adjusted gross revenuelite (AGR-Lite) takes a “pretty straightforward approach” to meeting the needs of both grain and vegetable growers.

And specialty producers

seeking to protect added crop value may find the revenuebased, whole-farm product an invaluable alternative to existing yield-based fruit or vegetable coverage, according to Schnitzler, who helped bring AGR-Lite to Illinois.

AGR-Lite, which debuted in Illinois in 2009, protects against yield and/or price loss due to unavoidable natural disasters and market fluctuations. Coverage

RISKY BUSINESS: SPECIALTY CROPS March 15 is sales closing date for spring crop insurance.

Standard yield-based crop policies are available for Illinois apples and peaches, green peas, popcorn, processing beans, processing sweet corn, and, in selected counties, cabbage.

Forage coverage is available in Stephenson and Jo Daviess counties, with processing pumpkin coverage offered in Bureau, Fulton, Henry, Knox, Marshall, Mason, Peoria, Putnam, Stark, Tazewell, and Woodford counties.

Bull sale to kick off Illinois Beef Expo The 2010 Illinois Performance Test (IPT) Bull Sale catalog recently was posted on the internet at {www.IPTBullSale.com}.

Producers can access the site to view performance pedigrees and other pertinent information such as adjusted birth, weaning, and yearling weights for animals that will be featured at the sale.

The IPT bull sale will begin at 11 a.m. Thursday, Feb. 25, at the Illinois State Fairgrounds. The sale is the leadoff event for the Illinois Beef Expo.

There are 123 perfor-

mance bulls in the catalog, including 65 Angus, 53 Simmental, three Polled Hereford, and two Red Angus.

Producers who want a hard copy of the catalog or seek additional information may write Dave Seibert, sale manager, at 727 Sabrina Drive, East Peoria, IL 61611; call 309-694-7501 extension 224; or e-mail him at dseibert@illinois.edu.

Additional information about the bull sale and the Beef Expo also is available at the Illinois Beef Association’s website {www.illinoisbeef.com}.

applies to most crop and livestock activities — even Christmas tree production — within an operation.

While conventional insurance is available for Illinois apples and a few other horticultural crops, Schnitzler notes standard crop coverage often is “unrealistic in the values it sets.”

“The federal crop insurance program values your apples at $9.75 a bushel,” Schnitzler told growers at the recent Illinois Specialty Crops Conference.

“Most of you wouldn’t even sell your (defective) culls for $9.75 a bushel. It works fine, I guess, for the large commercial operations on the West Coast. It doesn’t work very well for most of the orchards in the Midwest.“ AGR-Lite uses five-year historical farm average revenue, based on a producer’s Schedule F or equivalent income tax form and an annual farm report, to calculate a level of guaranteed individual revenue. AGR-Lite premiums are federally subsidized, and policies can be used in conjunction with other coverage at a reduced premium.

While AGR-Lite coverage more accurately reflects the actual value of individual production, Schnitzler offers some caveats. While the policy formula provides for anticipated growth in an operation, protections do not quickly or easily catch up to “extreme growth,“ he related.

To date, AGR-Lite “has not been a rousing success” in Illinois, Schnitzler said.

But given modern market twists such as produce recalls, media-driven food

concerns, and potential for agroterrorism, he predicts growing appeal for a policy that protects against social and consumer risks. — Martin Ross

DATEBOOK Jan. 26 Certified livestock manager and manure management workshop. 9:15 a.m. to 2 p.m. American Legion Post 252, Breese.

Illinois Tillage Seminar. 8 a.m. to 3:15 p.m. Pere Marquette Hotel, Peoria. Registration deadline Jan. 19. For information call 815-395-5710.

Feb. 2 Illinois primary election.

Feb. 23-24 Illinois Farm Bureau Governmental Affairs Leadership Conference, Crowne Plaza, Springfield. Contact your county Farm Bureau or go online to {www.ilfb.org}.

Feb. 23 Certified livestock manager and manure management workshop. 9:15 a.m. to 2 p.m. Stephenson County Farm Bureau, Freeport.

Feb. 24 Certified livestock manager and manure management workshop. 8:15 a.m. to 12:30 p.m. DeKalb County Farm Bureau, Sycamore.

March 5-7 Annual Illinois Horse Fair, Illinois State Fairgrounds, Springfield. Clinics, demonstrations, judging trials, and exhibits. For tickets, call 217-585-1600 or go to {www.HorsemensCouncil.org}.

March 9 Certified livestock manager and manure management workshop. 8:15 a.m. to 12:30 p.m. Sangamon-Menard Extension, Illinois State Fairgrounds, Springfield.

March 16 Illinois Ag Legislative Day. Howlett Building, Capitol Complex, Springfield.

FarmWeek Page 5 Monday, January 25, 2010

PRODUCTION

Most fertilizer applications on hold ’til spring

BY DANIEL GRANT FarmWeek

Farmers and ag retailers for the second year in a row have a big job ahead of them once conditions are fit for spring fieldwork.

The number of fertilizer applications completed last fall was below normal due to the late harvest and poor field conditions.

The situation was eerily similar to what took place in the fall of 2008.

Illinois in 2008 and 2009 received a combined average of 100.8 inches of precipitation, which is 22.4 inches above normal, according to the Illinois State Water Sur-

vey (see Page 12).

“I’d say fall fertilizer applications in our area came close to 70 percent of normal,” said Jeff EggleJeff Eggleston ston, general manager of Hintzsche Fertilizer Inc. in Maple Park and a board/executive committee member of the Illinois Fertilizer and Chemical Association (IFCA).

“We didn’t get all our P (phosphorus) and K (potassium) on due to the snow.”

It has been estimated

about half of all anhydrous ammonia sold in Illinois typically is applied in the fall.

Now, a portion of that work will be dependent on spring conditions.

“We need to be prepared (for a repeat of last year’s poor planting conditions), but I hope we get a better season,” Eggleston said.

Meanwhile, the workload may increase as some analysts believe U.S. farmers this spring could plant an additional 2 million-plus acres of corn, compared to last year, due in part to a severe drop (6.2 million acres) in winter wheat seedings.

“There is no question we can get it (fertilizer applica-

tions) done if we have a reasonable opportunity,” Eggleston said last week at the IFCA annual convention and trade show in Peoria. “It just may not be as timely.”

The weather will dictate how quickly producers and ag retailers can cover acreage this spring.

But Eggleston also has concerns about fertilizer dealers keeping up with farmers, who steadily are farming more acres and using larger planters, and about a possible switch from anhydrous ammonia to urea ammonium nitrate (UAN) solutions.

“There could be a switch in nitrogen sources” due to the lack of fall applications,

Eggleston said. “Is the logistical system in place to support the potential change?”

Eggleston suggested farmers in coming weeks and months should work with fertilizer dealers to formulate a plan for this spring.

Farmers likely will be looking at steady to stronger prices for N, P, and K in the next four months due to the pent up demand, he said.

The Illinois Production Cost Report released this month showed a slight increase across the state in the average retail prices for anhydrous ammonia, urea, liquid nitrogen 28 percent spread, and diammonium phosphate.

of an insurance policy” than an integrated pest management strategy.

“The whole paradigm of how we manage pests continues to change very rapidly,” he said.

as more no-till, less use of soil-applied insecticides, and more corn-on-corn) that favor the pest.

About 98 percent of Illinois fields have spiral nematodes while about 88 percent of fields have lesion nematodes, Niblack reported.

But it’s hard to estimate just how much damage nematodes cause to corn.

“Most injury from nematodes looks like uneven growth” so it’s hard to detect with the naked eye, Niblack said. “Damage can range from no yield loss to 15 to 20 percent yield loss.”

Farmers, therefore, should sample each field for nematodes in order go gauge the potential for crop loss and to develop management strategies.

“Sampling is the key,” Niblack added. “Management recommendations depend on what species we find.” — Daniel Grant

Are some fields Shift in crop pest populations short on sulfur? could alter management practices U of I seeks answer It may surprise farmers but recent reports suggest some Illinois fields may lack sufficient levels of sulfur.

Sulfur is the 13th most abundant nutrient in the earth’s crust and is essential for corn production, according to Fabian Fernandez, University of Illinois Extension soil fertility specialist.

He spoke recently during the Corn and Soybean Classic in Bloomington and at the Illinois Fertilizer and Chemical Association’s annual convention last week in Peoria.

However, “The frequency of sulfur deficiencies has increased,” Fernandez said.

Historically, sulfur applica‘ We have a lot tion for corn has not been recommended in Illinois because less sulfur inputs soil supply, manure applications, and a greater and/or atmospheric deposition were sufficient to supply the sul- output of sulfur.’ fur needs of the crop.

That situation has changed in — Fabian Fernandez recent years due to greater University of Illinois removal rates by high-yielding grain, less atmospheric deposition, increased use of conservation tillage, and fewer manure applications.

“We have a lot less sulfur inputs and a greater output of sulfur,” Fernandez said.

An average Illinois cornfield in 1980 removed 7.7 pounds of sulfur per acre to produce 110-bushel corn compared to 2008 when the average cornfield removed 11.6 pounds of sulfur per acre to produce 165-bushel corn, according to Fernandez.

Meanwhile, the amount of sulfur deposited by rainfall, which Fernandez referred to as “free fertilizer,” declined from roughly 35 pounds per acre in the 1970s to about 13 pounds per acre in 2005 due in part to effects of the Clean Air Act of 1970.

The U of I, therefore, is organizing sulfur trials throughout the state to see what effect, if any, sulfur applications have on corn yields.

“We want to find out if there is a response, and, if so, where it is most likely,” Fernandez said.

Sulfur deficiencies most often are observed in low-organicmatter soils and soils with coarse texture with high leaching potential. But Fernandez hopes to include all types of soils from all over the state in the sulfur study, except those that have received manure applications at any time during the past five years.

“The most important thing is to try to have as many locations as possible to quantify if there is a response (to sulfur applications) and if there is a response, where it is most likely to occur,” he said.

Farmers interested in participating in the sulfur research may contact Fernandez via e-mail at fernande@illinois.edu or by calling 217-333-4426. — Daniel Grant

A shift in insect populations may alter the way corn growers manage pests in the near future.

University of Illinois entomologists reported at the Corn and Soybean Classic in Bloomington that densities of corn nematodes are on the rise in most parts of the state while the number of European corn borers (ECB) is at an all-time low.

Producers as a result should consider sampling more fields for corn nematodes, said Terry Niblack, U of I Extension nematologist.

As for corn borer control, the increased use of Bt corn and a decrease in refuge sizes for some hybrids likely will continue to shrink the population of ECB, according to Mike Gray, U of I Extension entomologist.

“They ECB are at historically low levels,” Gray said.

“This comes at a time when Bt usage continues to escalate.”

The annual fall ECB survey for Illinois in 2009 found a record-low 1.2 percent of corn plants showed any sign of ECB injury compared to the 10-year average of 26.5 percent.

“Based on these numbers, I think we’ll see very few corn borer moths around porch lights or sticking to windshields this year,” Gray said.

In fact, ECB populations in Illinois have fallen to such low levels Gray believes control measures to combat the pest are “more

FarmWeekNow.com To learn more about the shifting pest problems in Illinois, go to FarmWeekNow.com.

Integ rated pest management in the future “may be different genes we insert in plants as opposed to different control strategies.”

The situation is much different, however, when it comes to corn nematodes.

“We’re concerned because we’re seeing a lot more of a corn nematode problem than we’ve ever seen before,” Niblack said.

The population of corn nematodes has expanded in Illinois due to changes to production practices (such

FarmWeek Page 6 Monday, January 25, 2010

BIOMASS

A new mechanical four-row planter has separate hoppers and placement channels. A metering system makes root placement more uniform compared to hand-labor systems. The University of Illinois collaborated with Tomax Ltd. and Bermuda King to develop a mechanical harvester and planter that were displayed recently in Urbana. (Photos courtesy U of I College of Agricultural, Consumer, and Environmental Sciences)

Miscanthus farming advances from shovels to machines

BY KAY SHIPMAN FarmWeek

Biomass crop miscanthus took a major leap forward with the recent unveiling of a mechanical planter and harvester at the University of Illinois.

U of I researchers in collaboration with European bioenergy developer Tomax Ltd. and Oklahoma machinery manufacturer Bermuda King exhibited a mechanical rhizome harvester and planter, dubbed Rizogen, during the U of I

Bioenergy Feedstocks Symposium at Urbana.

The equipment is the result of three years of collaboration and may reduce production costs by as much as 40 percent, according to the U of I. Pesotum farmer Eric Rund,

A rear view of the new mechanical miscanthus root harvester shows one of several conveyor belts that help separate soil from the rhizomes.

who attended the symposium, expects to plant 20 acres of miscanthus greenhouse plants this year.

Rund noted miscanthus production previously has relied on hand labor for planting and harvesting.

Producers have used tree planters for planting and potato diggers to harvest miscanthus rhizomes from the soil. Hand labor has limited rhizome production and the availability of miscanthus planting material because the crop is sterile.

The team’s goal was to remove manual labor, integrate the digging and grading process, increase soil separation, and improve quality and volume to reduce costs, said Gavin Maxwell, a bioenergy consultant with Tomax.

Recent U.S. trials with the Rizogen equipment showed a 200 percent increase in rhizome collection compared to hand-labor systems.

The planter also makes rhizome placement more uni-

form and matches ground conditions with rhizome weight and quality.

The four-row planter incorporates separate hoppers and placement channels.

‘When this project star ted, the propagation of rhizomes was done with shovels and lots of manual labor.’

— Timothy Mies Energy Biosciences Institute

The harvester lifts and breaks apart rhizomes with a digging head that works similar to a large garden tiller.

Rhizomes are placed on a series of conveyor belts that help remove soil from the rhizomes, which eventually exit on the side and fall onto an adjacent trailer.

This year, the harvester and planter will be available only to U.S. and European Union nurseries. In 2011, the equipment is expected to be available to individual growers.

“When this project started, the propagation of rhizomes was done with shovels and lots of manual labor. These machines will take miscanthus production to a new level,” said Timothy Mies, U of I deputy operations director at the Energy Biosciences Institute.

FarmWeek Page 7 Monday, January 25, 2010

REACHING OUT

Groups eyeing long-range Haitian recovery

BY MARTIN ROSS FarmWeek

As the people of Haiti struggle to survive the aftermath of a major earthquake and last week’s aftershocks, soy researchers and nutrition experts already are considering how best to help survivors sustain and rebuild.

Their conclusion: With a death toll well above 200,000 and disaster-related health issues merely compounding dual concerns about poverty and HIV-AIDS, Haiti’s struggle will merely have begun once the rubble has cleared, and assistance must not stop once the news cameras leave.

Thus, the Illinois Soybean Association (ISA) is joining the World Initiative for Soy in Human Health (WISHH), the World Soy Foundation (WSF),

and the University of Illinois National Soybean Research Laboratory (NSRL) to explore ways to aid Haiti both immediately and in its recovery.

ISA Executive Director Lyle Roberts suggested “providing assistance with soy protein may be one of the most effective“ ways to help Haitians.

The Northern Food Grade Soybean Association plans to donate a cargo container of soybeans for use in Haitian relief, and the soy groups are considering ways the beans can be processed to provide the greatest reach and impact.

WSF Executive Director Nathan Ruby stressed neither WISHH nor his own charitable foundation, both of which are dedicated to global soy nutrition and education, is “a short-term or immediate

Farmer fellowship helping Haitian aid Lexington farmer James Reimer flew out of Haiti just before calamity struck.

Reimer found his brief January tour of the poverty-stricken island “eye-opening.” He finds the struggles ahead for Haiti unimaginable.

The Lexington-based Fellowship of Christian Farmers International (FCF) last week was mounting a major relief effort for the Haitian people, coordinating with Cargill and Decatur-based Archer Daniels Midland to supply cooking oil, Michigan Farm Bureau to provide edible beans, and Louisiana growers to donate rice.

FCF is lining up truckers to haul provisions in cooperation with Central Illinois’ Midwest Food Bank and accepting contributions to defray diesel fuel and other costs. Ohio’s Wright Air Force Base and a Florida container facility may play key roles in shipping commodities.

Producer and project coordinator Mark Freed also anticipates FCF partnering with Samaritans First and other ministries to assist in the Haitian cleanup from the earthquake and groups such as the Florida-based ECHO (Educational Concerns for Haiti Organization) in helping restore island crop production. Humanitarian needs likely will extend well beyond the capital of Port-Au-Prince and the earthquake’s epicenter. Freed cites concerns that displaced Haitians may migrate en masse to northern Haiti.

Reimer was part of a three-member group from Lexington Community Church that joined with a larger delegation from Normal’s Eastview Christian Church to celebrate completion of a new church in northern Haiti. He noted widespread poverty and inadequate infrastructure, water, sewers, and housing in the island nation.

In the face of disaster and serious resource deficiencies, Reimer believes the most basic aid will be crucial in minimizing further loss of life, but he acknowledges the herculean challenges facing relief workers.

“There isn’t a very good water supply,” he related. “Just driving over the roads, it takes an hour and 45 minutes to go 12 miles. That’s the problem I imagine they’re having now: just getting from one place to another.

“We flew out of Port-Au-Prince, which is the only major airport in the country. They just have one landing strip — I can’t imagine the problems they’re having moving things in and out.”

The Haitian crisis arises as FCF continues to mend Texas livestock fences damaged by Hurricane Rita. The group’s post-Rita relief effort — mobilizing producers with hay and trucks and cash donations — will serve as the “model” for the Haitian project, FCF Executive Director Dennis Schlagel reported.

With longstanding “ministry contacts” immersed in Haitian mission work, FCF is well-positioned to identify post-disaster priorities.

“When you work disaster, you have to have people on the ground,” Schlagel stressed. “We know these people.” — Martin Ross To contribute to or offer volunteer services as part of FCF’s Haitian relief effort, contact the organization at 309-365-8710 or visit FCF on the web at {www.fcfi.org}.

relief organization.”

But given Haiti’s “rampant suffering,” he an d others see potential to redirect and “leverage” existing resources and programs to the island’s near-term recovery and longterm sustainability.

“Haiti’s frankly chronic malnutrition problems have only now been exacerbated by the earthquake,” WISHH Director Jim Hershey told FarmWeek.

“The nice thing about soy proteins — especially those WISHH and the University of Illinois have been working on — is that they are proteindense. You can provide a denser form of a needed nutrient.

“Haiti’s a classic case of longterm protein deficiency. (Developmental) stunting rates, especially in the rural parts of Haiti and the poorer parts of Port-auPrince, are staggering.

“That was before the earthquake, which took away people’s livelihoods and homes. There was a long-term problem before.

Now, there’s going to be an even worse long-term problem.”

The earthquake disrupted a WISHH/NSRL school feeding program targeting nutrition among some 300 female

Haitian students. The disaster will leave many Haitian children orphaned or with a single parent, and Ruby suggests schools and other public institutions thus may need to assume a far greater role in assuring juvenile nutrition needs are met.

Soy nutrition has also been applied in efforts to manage HIV-AIDS in Africa and the Caribbean. Haiti is the Western Hemisphere’s poorest country, with roughly 5 per-

cent of its adult population infected with HIV and high incidences of malaria, tuberculosis, and diarrheal diseases.

A recent World Bank report focusing on Haiti argued poor nutrition worsened by rising food prices is reducing the effectiveness of potentially lifesaving AIDS drugs. The impact of soy nutrition in bolstering immunity against the AIDS virus also could help Haitians “fight off diarrhea,” Hershey said.

IFB OKs Haiti donation The Illinois Farm Bureau Board of Directors last week approved a $2,500 corporate donation to Haiti earthquake relief efforts.

Collectively, the Illinois Farm Bureau “family of companies“ has contributed $27,500 to assist the people of Haiti. IFB also is offering options for individuals who wish to make a donation.

The IAA Credit Union has opened a special account for employees to contribute to relief efforts, with contributions from IFB, Country Financial, and GROWMARK to be pooled and sent to the American Red Cross (ARC)-administered International Response Fund.

Individuals also may contribute by texting “Haiti” on their cell phone to 90999, to donate $10. The ARC website‘s {www.redcross.org} Giving and Getting Involved section details ways to help Red Cross provide Haitian relief.

The Haitian disaster has drawn support from across Illinois.

Students and other representatives of the University of Illinois College of Medicine have provided medical relief and treated malnutrition and disease problems in Haiti, and St. Louisbased Monsanto has contributed $50,000 for Red Cross efforts.

FarmWeek Page 8 Monday, January 25, 2010

LIVESTOCK

Fewer cattle placements could lead to higher prices

BY DANIEL GRANT FarmWeek

Market bulls may influence the cattle market following last week’s release of USDA’s January cattle on feed report.

USDA Friday reported the inventory of cattle and calves on feed in the U.S. (11.01 mil-

lion head) as of Jan. 1 was down 2 percent compared to the same time last year.

Meanwhile, placements in feedlots during December (1.55 million head) declined by 6 percent. In fact, the estimate was the lowest for December placements in the past 11 years, according to Rich Nelson, director of research at Allendale Inc. in McHenry.

The placement estimate “is a bullish number for us,” Nelson said. “And we expect lower placements will last another couple months.”

Fewer cattle in feedlots combined with lower weights likely will reduce overall beef supplies. Carcass weights for steers were down in the latest report by about 11 pounds per animal while heifer weights were down by about eight pounds, Nelson said.

The reduction in cattle weights likely was the result of extreme winter weather and rallies in the corn market prior to the Jan. 12 crop production report, which was bearish to grain prices as USDA project-

ed a record-large corn and soybean crop.

“The (lower) weights will trim a little bit of production off in the first quarter,” Nelson said.

After that, lower placements likely will reduce beef supplies down the road. Nelson predicted cattle prices on a live basis could average $85 per hundredweight in the first quarter and possibly reach $90 by the second quarter.

However, cattle prices will be very dependent on the economy and its effect on beef demand.

“About 80 percent of price movements are based on the perception of beef demand and when the U.S. consumer comes back to beef,” Nelson said.

Globally, U.S. beef exports increased 4 percent in November 2009 compared to the previous year, the U.S. Meat Export Feder-

ation (USMEF) reported.

Japan in particular increased imports of U.S. beef by 23 percent.

“Despite the (BSE-related) limitations on beef exports to Japan from cattle under 21 months of age, we continue to regain market share there,” said Philip Seng, USMEF president.

But beef exports for the first 11 months of 2009 still were down 10 percent in volume compared to 2008.

USDA study confirms safety of pork exposed to H1N1 A recent study by USDA scientists provides additional confirmation that meat and tissue from hogs exposed to H1N1 do not contain the virus.

“This research provides additional reassurance for consumers about the safety of pork,” said Edward Knipling, administrator of USDA’s Agricultural

Research Service (ARS).

ARS scientists received samples of the H1N1 virus from the U.S. Centers for Disease Control and Prevention. The virus samples came from people who had been infected.

The scientists then inoculated 30 5-week-old pigs with the virus to determine

their susceptibility to H1N1.

After several days, the pigs’ muscles, lungs, liver, and other vital organs were tested for the virus.

The animals showed signs of upper respiratory disease, but there was no evidence that the virus had spread to any other parts of the body.

Illinois Pork Expo Feb. 2-3 in Peoria The Illinois Pork Expo will be held Feb. 2-3 at the Peoria Civic Center.

The theme for this year’s event, which is billed as the

FarmWeekNow.com Check out the schedule and other activities at the Illinois Pork Expo by going to FarmWeekNow.com.

largest pork-specific trade show in Illinois, is “Working Through Challenging Times.”

Activities will begin on Tuesday, Feb. 2, with the annual meeting of the Illinois Pork Producers Association (IPPA)

from 10 a.m. to 1 p.m.

The trade show will be open on that day from 2 to 6 p.m.

On Wednesday, Feb. 3, the trade show will be open from 8 a.m. to 4 p.m.

There will be seminars on pork production, animal welfare, and environmental issues.

There also will be seminars on Feb. 3 that will focus on purebred and show pig production.

For more information about the Illinois Pork Expo, contact IPPA at 217-529-3100 or visit the website {www.ilpork.com}.

Illinois deer hunting totals increase slightly this season Deer hunters in Illinois took slightly more deer in the 20092010 hunting season despite a slower fall season due to the late corn harvest, according to the Illinois Department of Natural Resources (IDNR).

Based on preliminary figures released last week, 189,277 deer were harvested in Illinois from fall through Jan. 17. In comparison, 188,901 deer were taken in 2008-2009.

“Illinois deer hunters taking to the field for the last three days of hunting (Jan. 15-17) enjoyed some excellent conditions,” said Paul Shelton, IDNR forest wildlife program manager. “For mid-January weather, this was about as good as it gets.”

In late 2009-early 2010, hunters were more successful in the late-winter antlerless only and special chronic wasting disease seasons compared to the previous year.

The 2009-2010 total for those seasons was 17,826 compared to 12,552 the previous year.

The top five county totals for 2009-2010 were: Pike, 8,131 deer; Fulton, 5,344; Adams, 4,613; Jefferson, 4,612; and Jo Daviess, 4,147.

Of the total deer harvested in 2009-2010, slightly more were does (50.5 percent) than bucks (49.5 percent). The state’s record deer hunting season occurred in 2005-2006 when 201,301 deer were taken.

FarmWeek Page 9 Monday, January 25, 2010

FROM THE COUNTIES

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UREAU — The Women’s Committee will sponsor cooking class fundraisers for the Bureau County Farm Bureau Foundation. The classes will be from 6 to 8 p.m. Tuesday, Feb. 16, and Thursday, Feb. 18, at Someone’s in the Kitchen, Princeton. Chef Monika Sudakov, Chestnut Street Inn, will lead the classes. Cost is $40 per class or $50 for both.

Call 815-454-2419 or e-mail monikaandjeff@chestnutinn.com for reservations or more information.

• The Young Leader Committee will take part in the District 4 YL curling outing from 6 to 9 p.m. Friday at the Waltham Curling Club, Triumph. Players must sign a waiver and are asked to wear clean tennis shoes. Cost is $10. If you are a Farm Bureau member between the ages of 18-35 and want to participate, call the Farm Bureau office at 815-875-6468

by Thursday noon for reservations.

ALHOUN — The annual meeting will be at 6 p.m. Saturday, Feb. 27, at the Calhoun Community High School, Hardin. Glenn Gindler will speak about his IFB China market study tour.

•An agroforestry workshop will be from 9:30 a.m. to 3 p.m. Friday, March 5, at St. Anslem’s Hall, Kampsville.

Registration fee is $20 by Feb. 23 or $30 at the door. The first 20 Calhoun County Farm Bureau members to register will receive a $5 discount.

Topics will include agroforestry, timber management, shitake mushrooms, and silvopasture goats. Call the Farm Bureau office at 618-576-2233 for reservations or more information.

FFINGHAM — A planning night for the Legislative, Commodities and

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Marketing, and Local Affairs Action teams will be at 6:30 p.m. Tuesday at the Farm Bureau office. Dinner will be served. Members are invited to join one of the teams. Call the Farm Bureau office at 217342-2103 or e-mail ecfbmgr@consolidated.net for reservations or more information.

AYETTE — The annual meeting will be at 10 a.m. Thursday at the Farm Bureau office. Election of directors will be held. Call the Farm Bureau office at 618283-3276 for more information.

ENRY — The Young Leaders will sponsor a “Who is the Next Generation of Family Farm Producers?” seminar at 6:30 p.m. Tuesday at the St. Paul Lutheran Church, Orion. Ron Hanson, University of Nebraska-Lincoln, will be the speaker. Call the Farm Bureau office at 309937-2411 for reservations or more information.

IVINGSTON — Doug Yoder, Illinois Farm Bureau senior director of marketing, will be the speaker at a crop insurance options meeting at 7 p.m.

Monday, Feb. 8, at the Farm Bureau office. Seating is limited to the first 50 participants.

Call the Farm Bureau office at 815-842-1103 or e-mail tvlcfb@verizon.net for reservations or more information.

ERCER — The Prime Timers will have a potluck luncheon meeting at noon Tuesday at the Farm Bureau office. Ryan Burchett, KWQC meteorologist, will be the speaker. Call the Farm Bureau office at 309582-5116 for reservations or more information.

• The annual meeting will be at 5:30 p.m. Thursday at the Aledo VFW Hall. The Mercer County High School Jazz Combo will provide the enter-

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tainment. Call the Farm Bureau office at 309-582-5116 for more information.

ONROE — An agricultural land management workshop will be from 8:30 a.m. to 12:30 p.m. Friday at the Monroe County Annex.

Topics will include landowner and hunter rights and laws; land management and honeysuckle dilemmas; USDA conservation programs; establishing wildlife food plots; and crop, fertilizer, and chemical updates. Bring fire extinguishers to be checked. Lunch will be served. Call the Farm Bureau office at 939-6197 for reservations or more information.

• A Viewpoint meeting will be at 8 a.m. Friday, Feb. 5, at the Acorn’s. Breakfast will be served. Call the Farm Bureau office at 939-6197 by Wednes-

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day, Feb. 3, for reservations or more information.

• The Mon-Clair Corn Growers Association annual meeting will be at 6:30 p.m.

Monday, Feb. 8, at the Turkey Hill Grange, Belleville. Call 939-6197 or 233-6800 by Monday, Feb. 1, for reservations or more information.

T. CLAIR — The MonClair Corn Growers Association annual meeting will be at 6:30 p.m. Monday, Feb. 8, at the Turkey Hill Grange, Belleville. Call 9396197 or 233-6800 by Monday, Feb. 1, for reservations or more information.

INNEBAGO — The Boone, Ogle, and Winnebago County Farm Bureaus will sponsor a bus trip Monday, Feb. 1, to the Case IH/New Holland Tractor Assembly plant, Racine, Wis.

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The bus will leave the Winnebago County Farm Bureau office at 7 a.m. The group will eat lunch at the Old Country Buffet, Racine, following the tour. Cost for bus and lunch is $30. Call the Farm Bureau office for more information.

• A truck regulations meeting will be at 10 a.m. Wednesday, Feb. 3, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Topics to be covered are license requirements, commercial driver’s licenses, and medical cards. Call the Farm Bureau office at 815-962-0653 for reservations or more information.

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

Second federal broadband release totals $4.8 billion The Commerce Department’s National Telecommunications and Information Administration (NTIA) and USDA’s Rural Utilities Service (RUS) last week announced $4.8 billion in grants and loans will be awarded for broadband.

Recipients will be announced by Sept. 30. This was the second broadband funding release.

“In response to lessons learned from the first funding round, RUS is making important changes that will make the process easier for applicants and target our resources toward last-mile broadband connections to homes and businesses,” said Jonathan Adelstein, USDA’s RUS administrator.

NTIA will allocate about $2.6 billion of which about $2.35 billion will be available for infrastructure projects. In addition, NTIA plans to

award at least $150 million for public computer center projects, which will expand access to broadband service and enhance broadband capacity at public libraries, community colleges, and other institutions that serve the general public.

RUS will allocate about $2.2 billion in this round for broadband infrastructure projects and will focus on last-

mile projects, which are expected to receive the majority of funding.

RUS also will fund middlemile projects involving current RUS program participants.

A total of $7.2 billion in federal recovery funds will be awarded to expand access to and use of broadband services.

Illinois ag singles plan meeting The Illinois Singles in Agriculture will tour several McLean County sites and have a dinner-dance Feb. 12-14 at Hawthorn Suites, Bloomington.

The meal registration deadline is Feb. 2.

Participants will register from 4 to 5:30 p.m. Feb. 12. Several tours are scheduled for Feb. 13, concluding with a dinner and dance. Evening registration will start at 6:30 p.m. Breakfast and activities will start at 8 a.m. Feb. 14.

The cost for all tours, meals, and the dance is $34. The fee for the dinner-dance only is $24.

Room accommodations are separate and must be arranged through Hawthorn Suites at 309-829-8111.

For more information or to register, call 217-854-8388 or email rose.thistle@hotmail.com.

FarmWeek Page 10 Monday, January 25, 2010

PROFITABILITY

Detergents a great value for your diesel engine

BY MARK DEHNER

Getting the most out of your diesel engine is extremely important. Power, efficiency, and protection is what every operator wants.

In an earlier FarmWeek column, we discussed the eight multifunctional components Mark Dehner of Dieselex Gold and the benefits a diesel fuel user should expect. Although each

of the eight components in Dieselex Gold plays an important role, the detergency component has great value to the user and will be the focus of this article.

Engine manufacturers recognize the benefits of diesel fuel additives. Since conventional No. 2 diesel fuel contains no additives to reduce the formation of deposits, gum, varnish, or corrosion, the Cummins Engine Co. developed a test of its own (Cummins L10 Injector Depositing Test) to evaluate additive performance.

Cummins developed this test because of problems with excessive carbon buildup found in the metering valve area of the injector pintels. As carbon accumulated, it restricted fuel flow into the injector tip.

This caused less fuel to be injected into the cylinder, upsetting the injector spray pattern, and resulting in a loss of power, reduced fuel economy, and increased emissions.

Over the last several years, we’ve seen major changes in engine design, such as com-

mon rail fuel injection. Fuel is injected into cylinders at higher pressures than ever (more than 30,000 per square inch) for better atomization and emission control.

As a result, the fuel exists in a hotter environment, which accelerates the problem of carbon accumulation.

Using a potent detergency package, such as the one found in Dieselex Gold, is important to minimizing carbon deposits.

By keeping injectors clean, the spray pattern coming from the injector provides complete

atomization of the fuel so that it burns completely and efficiently within the combustion chamber.

Clean injectors mean peak fuel efficiency, maximum horsepower, reduced maintenance, and lower emissions.

Dieselex Gold received a superior rating in the Cummins L10 Injector Depositing Test.

Mark Dehner is GROWMARK’s marketing manager of refined and renewable fuels. His email address is mdehner@growmark.com.

Analyst: Risk management key to agriculture’s survival

BY DANIEL GRANT FarmWeek

Agriculture is in the midst of significant structural change, and farmers as a result should think more like a CEO of their individual operations, according to Sano Shimoda, president of BioScience Securities.

Shimoda last week was the keynote speaker at the Illinois Fertilizer and Chemical Association (IFCA) annual convention and trade show in Peoria.

“Most farmers grew up focusing on production,” Shimoda said. “The key now is managing risk.”

Some of the key drivers influencing the ag industry include globalization, the bio-

‘The number of things out of farmers’ control has increased dramatically.’

— Sano Shimoda President of BioScience Securities

fuels industry, increased use of the commodities markets by financial investors worldwide, and regulatory changes.

“The number of things out of farmers’ control has increased dramatically,” said Shimoda, who predicted volatility likely is here to stay in the commodity markets and for the pricing of inputs.

“This affects farmers’ ability to plan.”

Farmers, therefore, should re-evaluate their business plans.

New business models and the continuation of rapid consolidation in the industry will create new risks and opportunities, according to Shimoda.

“When the market changes, there is a need to re-evaluate your business,” he said.

“Farmers have to be the CEO of their business.”

Farmers likely will require greater outside expertise to run a successful operation, he said.

And that’s where opportunities will open for ag retailers, Shimoda told IFCA members.

“Dealers have to shift from a product to an application/service mentality,” Shi-

moda said. “You have to focus on bringing expertise to add value to the customer.”

Otherwise, some ag dealerships or farm-related companies could see their importance to farmers diminish, Shimoda said.

Farmers already have changed their buying habits for inputs due to price volatility and tighter margins.

Some have shown a willingness to purchase generic pesticides, use a cheaper broker, make direct purchases of fertilizer at river terminals, and add on-farm storage for various input items.

“In the supply chain, people who help farmers integrate will be the ones who are successful,” Shimoda added.

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 $36.00-$49.50 $43.03 n/a n/a n/a n/a This Week Last Week 22,123 41,563 *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 $67.92 $66.71 $50.26 $49.37

Change 1.21 0.90

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

This week $84.33 $84.15

Prv. week $84.31 $84.50

Change 0.02 -0.35

CME feeder cattle index — 600-800 Lbs.

Auction Calendar

This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) This week Prev. week Change 97.22 96.79 0.43

Lamb prices Confirmed lamb and sheep sales This week 576 Last week 638 Last year 475 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $110-$115. Good and choice 1-2: 60-90 lbs., $135.

Slaughter Ewes: Utility and good 1-3: $56-$58. Cull and utility 1-2: $56.

Export inspections (Million bushels)

Week ending Soybeans Wheat 01-14-10 44.6 9.4 01-07-10 46.9 12.4 Last year 37.9 7.6 Season total 838.4 511.0 Previous season total 590.7 697.8 USDA projected total 1340 875 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Corn 30.3 24.1 27.5 598.0 590.2 2050

Tues., Feb. 2. 10 a.m.

63.3 Ac. LaSalle Co. Lucy Puetz Estate, STREATOR, IL. Bradleys’ and Immke Auction Service. www.bradleyauctions inc.com Tues., Feb. 2. 10 a.m.

Farm machinery and shop eq. Jerry Chism, CHESTERFIELD, IL. Rick Stewart and Mike Crabtree, Auctioneers.

Sat., Feb. 6. 10 a.m.

Machinery Auction. Jim and Shirley Wiersema, MT. CARROLL, IL. Jim Calhoun, Auctioneer.

www.calhounauction.com Sat., Feb. 6. 10 a.m. 30 Ac. Warren Co. Genevieve M. Rose Heirs, MONMOUTH, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers .com Thurs., Feb. 11. 10 a.m.

157 Ac. Livingston Co. Joan A. Rimer and Trudy L. Wilson, DWIGHT, IL. Immke and Bradleys’ Auction Service. www.biddersandbuyers .com/immke Thurs., Feb. 11. 9:30 a.m. Late Model Farm Eq. LA PORTE CITY, IA. Backes Auctioneers and Realty. www.backes-

auction.com Fri., Feb. 12. 10 a.m.

Farm Eq. Close-Out. Tom Fornoff, MANITO, IL. Nehmelman Auction Co. topauctions247.com/nehmelman Sat., Feb. 13. 9:30 a.m.

3 Generation Collection of Farm Eq. Larry and Clara Julius, FREEPORT, IL. Pro Auctions, LLC. www.mudcreekfarms.c om/Pro-Auctions.html Sat., Feb. 13. 10 a.m.

161 Ac. Mercer Co. William J. and Margaret M. Morris, ALEDO, IL. Steve Relander, Auctioneer.

Mon., Feb. 15. 6 p.m.

151.2 Ac. Coles Co.

Elizabeth Thrall Estate and Sycamore Holding LLC, HINDSBORO, IL. Stanfield Auction Co. Wed., Feb. 24. 10 a.m.

322 Ac. Effingham Co. Carl Curtis, EFFINGHAM, IL. Stanfield Auction and Pierce Farm Mgmt.

Wed., Mar. 3. 2 p.m. 175 +/- Ac. Stark Co. Ron Elliott, BRADFORD, IL. Rick Rediger and Bob Johnson, Auctioneers. www.rickrediger.com or www.biddersandbuyers .com Thurs., Mar. 18. Spring Farm Closeout and Consignment Auction.

Agri-Tech, Inc., RAYMOND, IL.

FarmWeek Page 11 Monday, January 25, 2010

PROFITABILITY Corn Strategy

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

Cents per bu.

2009 crop: Corn prices have declined to what should prove to be very strong support. They are poised to make a 20-week cycle low. Upside resistance will be felt at the $3.85-$3.92 down gap, $3.95, and $4. Increase old-crop sales to 50 percent if March rallies to $3.94. We may boost sales even more, so check the Cash Strategist Hotline frequently. Do not plan to store corn into spring unless you are confident of its quality, and we already are hearing of issues.

2010 crop: If December futures rebound to $4.24, make a 20 percent new-crop sale.

Check the Cash Strategist Hotline daily; we could adjust that target down at any time.

Fundamentals: Last week’s export sales were above 2 million metric tons (78 million bushels). We consistently are hearing more active buying interest in the world markets at these lower prices. The latest fundamental changes, though, put the corn market in the position of needing leadership from the other grains to turn up.

Soybean Strategy

Soy export sales remain impressive Even as the South American harvest approaches, soybean and soybean meal

Basis charts

exports continue to be exceptionally good. Shipments are keeping up with sales, ensuring exceptional exports this year.

We wouldn’t be surprised if USDA is forced to raise its forecasts even further on subsequent supply/demand reports.

The U.S. already has sold 91 percent of the current forecast and shipped 61 percent.

The lower prices for both wheat and corn are stimulating world trade. Purchases of U.S. wheat and corn reached new marketing year highs last week.

And, from what we hear on a daily basis, this past week’s activity should be nearly as good.

Activity in the corn export market should be monitored especially closely. With the aggressive soybean shipping program slated to slow down a little, exporter’s “load out” will start to free up, which may help boost corn business.

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2009 crop: New Chinese moves to slow their economy and a surge in the value of the dollar kept the soybean complex on the defensive. South American production expectations are becoming increasingly negative with early harvest under way. Boost sales to 50 percent if March hits $10.05.

That price and/or quantity could change at any time; check the Cash Strategist Hotline frequently.

2010 crop: Leave an order to make a 10 percent sale if November futures reach $9.95.

Check the Cash Strategist Hotline occasionally for possible changes.

Fundamentals: The perception that export business is going to quickly go away when South American supplies become available is keeping the complex under pressure. Still, U.S. soybean and soybean meal sales remain exceptionally strong. Nearly 1.5 million metric tons (55 million bushels) of soybeans were sold last week.

Argentine weather should be

watched closely; the latest forecasts call for dry, warm conditions.

Wheat Strategy 2009 crop: Technical damage has been done in the March contract with prices slipping below the psychological $5 support. However, further weakness should be limited by the pending 20-week cycle low.

Plan to make a 10 percent sale if Chicago March futures hit $5.59, bringing the total to 90 percent.

2010 crop: Use a rally to $5.83 on the Chicago July con-

tract to make an initial 25 percent sale. Check Cash Strategist Hotline daily as this target could be adjusted at anytime.

Fundamentals: The wheat market is trading on limited news, other than the implications of the recent USDA reports. The International Grains Council forecast world wheat production will fall 3 percent in 2010/2011. That would be 21 million metric tons (771 million bushels) less than last year, but still the third largest on record. On a positive note, world trade has picked up at these lower price levels.

FarmWeek Page 12 Monday, January 25, 2010

PERSPECTIVES

2009 growing season:

ONE FOR THE RECORDS Flooded fields were common across Illinois last spring, including this McLean County field outside of Bloomington. (Photo by Daniel Grant)

Illinois’ 2009 growing season was one of most challenging because of three unusual weather features: an extraordinarily wet spring, a cold summer, and a wet fall.

The year 2009 started out colder than normal in January — sound familiar? By February and March, temperatures had risen to slightly above normal.

After a dry January, February and March had slightly above normal precipitation. By the end of March, soil moisture was near normal. At that point, conditions looked good for the upcoming growing season.

April brought the first sign of trouble.

The statewide precipitation was 6 inches, 2.2 inches above normal and the ninth wettest April on record. The rains continued in May and June with an JIM additional 10.9 inches of precipitation.

ANGEL The combined rainfall total for spring was 16.7 inches, 4.6 inches above normal, which is about an extra month’s worth of rain.

By the end of June, soil moisture, stream flow, lake levels, and shallow groundwater levels were above normal throughout the state. Temperatures were close to normal from April to June.

July was the turning point as record-setting cold descended on the state. The average statewide temperature was 70.2 degrees, 5.2 degrees below normal and the coldest July on record in Illinois. July, normally the hottest month of the year, was colder than both June and August last year.

While Southern Illinois reported a few July days with temperatures in the 90s, much of the rest of the state saw none. The normal range of days in the 90s in July typically is between five in Northern Illinois to 15 in Southern Illinois.

Another remarkable feature of last July was the consistency of the colder-than-normal temperatures.

Statewide, every day was below normal except for July 11.

While this was good news for saving energy with air conditioners, corn growing degree days in July were down an average of 16 percent around the state.

August continued the cool trend with temperatures averaging 71 degrees, 2.2 degrees below normal and the ninth coldest August on record. Although July rainfall was slightly above normal, August rainfall was near normal.

If summer seemed gloomy with lots of rain and cold temperatures, it was. While no long-term sunshine records are kept across the state, the one sunshine recorder still in operation in Chicago reported 53 percent of the possible sunshine this summer, a new low for Chicago. Normal summer per- Corn harvest became an unusual challenge in deep snow in many places, cent of the possible sunshine is 67 percent. including this Livingston County field. (File photo by Teresa Grant-Quick, By the end of August, another crop Livingston County Farm Bureau manager) concern was the prospect of an early frost. Normal first-frost dates range from November and December. early October in Northern Illinois to late October in So what happened in 2009?

Southern Illinois.

We know the spring and fall were fairly active with It comes as no surprise that a colder-than-normal several large low-pressure systems moving through September increases the chance of an early frost. the Midwest. And we know that the mid-summer was Fortunately, September was the only normal month dominated by colder air from Canada. However, we of the growing season. Temperatures were normal do not fully understand the underlying causes of and rainfall was actually 1 inch below normal. these rare conditions.

October erased any ideas of a nice end to the Both 2008 and 2009 were extraordinarily wet with growing season. Colder and wetter conditions a combined precipitation of 100.8 inches, 22.4 inches returned to the state. The statewide average tempera- above normal. No other back-to-back years in modture was 49.8 degrees, 4.4 degrees below normal and ern history have been as wet. the sixth coolest October on record. Statewide preWhile the records are spotty in the 1800s, there cipitation was 8.3 inches, 5.4 inches above normal appears to have been a period from 1845 to 1851 and the second wettest October on record. with consecutive unusually wet years. It is possible to have another abnormally wet year, but the odds are Milder conditions prevailed in November with pretty slim. temperatures 5.7 degrees above normal and the second warmest November on record. However, it came too late to help much in the field. The remaining corn Jim Angel is the state climatologist with the Illinois State Water Survey. His e-mail address is jimangel@illinois.edu. and soybeans continued to be slowly harvested in

United front is needed to support our animal agriculture I don’t even remember a time when the farmers, ranchers, and the broad ag industry were threatened more than we are today.

We have a new and energized corps of critics out there who want to tell us how to do JOHN our job. State BLOCK and federal governments are being pushed to pass laws and regulations to deny us property rights and the ability to compete globally in food production.

Let’s concentrate on the challenge to animal agriculture.

Issue No. 1 — horse slaughter. In the past three years, we have stood and watched our market for unwanted horses stolen from us. Horses are personal property.

Now we have to ship them to Mexico or Canada to get anything. The shipping cost eats up most of the value. There is a strong demand for horse meat in Europe and Asia, but we aren’t allowed to process and ship there. Now we have unwanted horses roaming public land and even on the roads.

The Humane Society of the

U.S. (HSUS) succeeded in passing Proposition 2 in California which will destroy the California egg industry. HSUS already took gestation crates away from the few pig farmers there are in Florida.

With the help of the new generation of people who are far removed from the farm, the animal rights crowd is aiming to not just reform how we care for our animals but to destroy animal agriculture. That is their ultimate goal.

The whole ag industry needs to form a united front to challenge our enemies and build support for our cause. We have

an impressive case to make.

Ag is one of the few industries in the country that every year runs a trade surplus. We deliver to our citizens the most reasonably priced food in the world. Millions of jobs are at stake. We don’t want to raise our pigs, chickens, and cattle in some other country.

One encouraging development was the passage of a referendum creating a “Livestock Standards Board” in the state of Ohio. That board can set standards to prevent out-of-state activist groups from dictating how food is produced in Ohio.

The board members will

include the state director of agriculture, family farmers, veterinarians, a representative from a local humane society, and consumers. We hope this successful effort may serve as a model for other states to follow.

Commercial agriculture production is under assault like I have never seen before. We need to come together and protect this great industry.

John Block of Gilson, a former U.S. agriculture secretary, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His e-mail address is jblock@ofwlaw.com.