FarmWeek March 8 2010

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GOV. PAT QUINN’S budget preview already is sparking funding debates. Quinn is to officially unveil his budget proposal Wednesday. .......3

ILLINOIS OFFICIALS are monitoring rivers for possible flooding, while water table levels already are high in Mason County. ...............4

DESPITE LAST YEAR’S weather woes, most Illinois soybean farmers produced a much better crop than expected. ......7

Monday, March 8, 2010

Two sections Volume 38, No. 10

Ag aid included

Industry ‘waiting to use biodiesel’ pending Senate vote BY MARTIN ROSS FarmWeek

Despite a morass of proposed amendments and additions, U.S. Senate leaders were hoping this week to move a second “jobs” package that would restore confidence to the biodiesel industry and offer aid to weather-beaten producers. Debate continued Friday on a hefty projected $80 billion bill that includes several shortterm tax “extenders” and a proposed $1.5 billion in assistance for crop and livestock producers. Senate Majority Leader Harry Reid (D-Nevada) hopes to schedule a Tuesday vote on the measure, American Farm Bureau Federation policy ana-

lyst Pat Wolff reported. Retroactive extension of the recently expired $1-per-gallon biodiesel tax credit is a core element of the bill. Wolff said lawmakers last week were “not even talking about it” — a potentially positive sign, given controversy over the growing list of proposed amendments to the package. Alicia Clancy, corporate affairs coordinator with Renewable Energy Group (REG), which runs Danville’s Blackhawk Biofuels, noted “a significant drop-off in demand” following the credit’s Jan. 1 expiration. REG announced layoffs at its Washington, Iowa, and Farley, Iowa, plants in late January,

and although other REG plants continued operations, pay cuts have been necessary “across the board,” Clancy said. “It’s been a long winter in more than one way,” she lamented. “Now, we’re just waiting for the democratic process to take its course. If the biodiesel tax credit stays in the jobs bill, and the jobs bill gets passed by the Senate, we’re in really, really good shape. “Then we start notifying our customers that the tax credit is going to be back. What we have to wait for is the president to sign it, so it will actually be effective with the (Internal Revenue Service). The petroleum industry is literally just wait-

ing to use biodiesel.” Since January, REG-supplied fuel distributors have been “taking the $1-per-gallon risk on themselves,” Clancy said. However, the longer extension is delayed, the fewer the number of buyers who can afford to assume those costs “before biodiesel is no longer an option for them,” she said. Clancy credited Blackhawk’s ability to weather credit uncertainty largely to Illinois’ state tax credit for use of 11 percent biodiesel blends. Combined with higher biodiesel value under the federal renewable fuels standard, Illinois is in “a very good place” despite market disruption, she said.

Also included in the second jobs bill is a proposed $1.1 billion in supplemental direct payments for growers in disaster counties who suffer at least a 5 percent loss due to natural disaster. Supplemental payments would be equal to 90 percent of direct payments eligible producers received for the 2009 crop year and would cover quality losses. The jobs bill also proposes $150 million in aid for specialty growers, $500 million in forage and related aid for livestock producers, $75 million in emergency poultry support, and $25 million for aquaculture producers hit by higher feed costs.

Co-op deductions benefit or cost for growers?

Periodicals: Time Valued

A federal ruling allowing cooperatives to use a key tax deduction — at possible cost to some grain producers — has sparked confusion and some consternation this tax filing season. In 2004, the federal American Jobs Creation Act created the Domestic Production

Activity Deduction (DPAD), enabling companies to deduct a percentage of income derived from or wages paid for domestic production activities, including farming. DPAD was designed as a labor-based credit to replace export credits ruled illegal by the World Trade Organization. The income deduction rose from 3 percent in 2005 to 6 percent last year; it bumps to 9 percent for 2010. Producers with hired labor have been able to take the deduction since 2007; a fall Internal Revenue Service (IRS) ruling opened the door to coops that market their producerpatrons’ crops. However, if a co-op opts for DPAD, its individual members become ineligible for the deduction. Further, co-ops may take the deduction retroactively, in which case members who have used DPAD in past years would be required to file amended tax returns. The question, Illinois Farm Bureau Grassroot Issues Team Risk Management-Farm Program team member Ken Dalen-

berg argues, is whether “collectively, individual patrons have more to lose than the benefit to the cooperative.” Because it was seen as a business decision, co-ops can and largely have taken the deduction “without producer knowledge,” IFB risk-market specialist Doug Yoder said. Illinois Farm Business-Farm Management (FBFM) Association’s Jim Cullison reported roughly 40 percent of his largely mid-sized producer clients have taken the deduction, deducting anywhere from “very minimal amounts” to $3,500$4,000 in some cases. Cullison said the DPAD issue has been a “blindside” for some clients, but he blames current concerns on the timing of IRS’ ruling and inadequate coop-producer communications. “The accounting firms that work with the elevators became aware of (DPAD eligibility) this fall, and proposed it to the elevator managers,” he told FarmWeek. “Who wouldn’t want to take a (potential) $500,000 tax deduction? Communications

FarmWeek on the web: FarmWeekNow.com

just broke down along the way. You really can’t blame anybody for this — it just crept up so fast. “I’ve talked to some (FBFM) clients who are on elevator boards, and it seems like a lot of (co-op) directors were aware these deductions were going to be taken but were not aware of the impact to their clients. “One board member told me they needed to visit this issue and see what they could do to make things better for their clients.” Privately held elevators are not eligible for DPAD, and producers who deliver grain to those elevators or to co-op facilities of which they are not members need not worry about co-op deductions. Producers who are considering taking the deduction should contact their co-op. Co-ops can pass on a portion of deductions to patrons via 1099 gross grain sale tax statements — many dairy co-ops have provided such a “passthrough.” However, any remedy of that sort likely would have to wait until 2011, Cullison said.

GROWMARK has provided information on DPAD and its ramifications to its member service companies, but GROWMARK tax department director Greg Lawler noted local co-ops have the final decision on the deduction and how to direct resulting tax savings. Patron pass-through may not always be the best option for co-op or producer, Lawler held. Pass-through affects only producer income taxes — not federal self-employment tax liability. Further, Lawler said, local co-ops have an effective tax rate of about 39 percent, while producer-member rates usually are significantly less. By retaining the full deduction, co-ops may realize greater savings and reduce the co-op stock patronage members receive in lieu of cash, he said. That stock patronage is subject to both income and selfemployment taxes. Central Illinois GROWMARK member co-op Rising Farmers Grain Co. included a letter informing patrons of its See Deductions, page 4

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


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Quick Takes NEW VEHICLE OFFER — Dodge is offering a special program for Illinois Farm Bureau members beginning today (March 8) and continuing through March 31. Members who show their membership card at an Illinois Dodge dealership are eligible to receive a $500 discount on the following vehicles: Ram 1500; Ram 2500 and 3500 pickups; Ram 3500, 4500, and 5500 chassis cabs; Dakota; Dodge Grand Caravan and Grand Caravan C/V; Journey; Charger; Avenger; Caliber; Nitro; and Durango. Those eligible for the discount must have been Farm Bureau members for 30 days prior to the purchase. NEVADA CONSIDERING CLOSING AG COLLEGE — The University of Nevada, Reno, a land-grant university, is considering closing its College of Agriculture, Biotechnology, and Natural Resources. This follows a 6.9 percent budget cutback by the Nevada legislature in February. The proposed ag college closing, one of several possible actions, would fulfill an $11-million reduction in base funding required of the university. Other options include potentially closing ag college departments or merging some departments with other colleges. A decision is expected in early June. “Where does Nevada agriculture go from here?” asked Doug Busselman, executive vice president of Nevada Farm Bureau. ACTIVISTS SUE FARMS, TIE TO CHESAPEAKE BAY — Environmental activists last week filed a lawsuit in federal court against Perdue Farms Inc. and one of its Maryland contract farmers, claiming the farm has violated the Clean Water Act and discharged contaminants into a river that empties into the Chesapeake Bay. The U.S. Environmental Protection Agency Region 3 is attempting to coerce bay-area states into setting new water standards by threatening to withhold new water use permits. Assateague Coastkeeper and Waterkeeper Alliance filed the lawsuit in the federal district court of Maryland against Perdue and the Alan and Kristin Hudson Farm, which is an 80,000-bird operation. The environmentalists said they based on their lawsuit, in part, on test results of water samples from ditches that are adjacent to the Hudsons’ property. They claimed neither Perdue nor the Hudsons took any action after the groups threatened to sue them on Dec. 17.

(ISSN0197-6680) Vol. 38 No. 10

March 8, 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.

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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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FARMING MASTERS

Four IFB members are Master Farmers Four Illinois farmers, all members of Illinois Farm Bureau, have been selected as 2010 Master Farmers by Prairie Farmer magazine. They will be honored at a ceremony in Bloomington Wednesday. Award recipients are Raymond E. Defenbaugh, Biggsville (Henderson County); Garry Niemeyer, Auburn (Sangamon County); Terry A. Pope, Burnside (Hancock County); and Jamie Willrett, Malta (DeKalb County). Candidates are nominated by farmers, agribusiness leaders and agricultural Extension specialists from throughout the state. The program was started in 1925 as a way to recognize the finest farmers in both Illinois and Indiana. Building on the success of last year’s program, GROWMARK remains the sole financial sponsor for the Prairie Farmer Master Farmer awards. Established in 1841, Prairie Farmer is the oldest continuously published farm periodical in the United States. The 2010 Master Farmers: Ray Defenbaugh: As a high schooler, Defenbaugh’s plans for farming took a turn when he was electrocuted while operating a mounted corn picker. He lost parts of both feet and his right arm, but ultimately surpassed his doctors’ Ray Defenbaugh expectations. After graduating from Southern Illinois University, he married Alice, his high school sweetheart, and when he got the chance to rent some ground near Biggsville, he jumped at it. The Defenbaughs raised four children on their rural Biggsville farm. Today, they and their sons, Dan and Matt, raise corn, soybeans, oats, and hay on 3,000 acres and they operate a 240-head cow-calf herd. They bought the small elevator at Kirkwood and now have storage for half a million bushels, plus scales and a tower dryer. Defenbaugh helped organize and eventually become CEO of a local ethanol plant, Big River Resources, one of the most successful farmerowned ethanol ventures in Illinois. In addition, he serves on the board of Midwest Bank of Western Illinois, the National Grain and Feed Association, and the Illinois Corn Growers Association, and is president

of the Illinois Renewable Fuel Association. *** Garry Niemeyer: Starting out in 1970, Niemeyer helped farm his father’s 600 acres. He also fed 250 head of cattle and 2,000 feeder pigs each year. In the 1980s, Niemeyer and his father began raising soybeans and converted a good portion of their land to high-oil corn. These business decisions allowed him to grow to his current size of 2,200 acres. Garry Niemeyer

Niemeyer got his start with the Sangamon County Farm Bureau in 1986. One of the first issues he tackled was the water quality of nearby Lake Springfield. Leading by example, Niemeyer encircled his adjacent farmland with a 26-acre filter strip. Over the years, Niemeyer has served as president of the Illinois Corn Growers Association, a committee member on both George W. Bush and George Ryan’s farmer re-election team, and a director of the National Corn Growers Association, a post he still holds. His No. 1 partner is his wife, Cheryl, who has been the full-time farm accountant for the past five years. Niemeyer also has two trusted associates backing him up with the day-to-day farm operations. However, Jerry McCulley and Gary Stouffe aren’t typical farm employees. “We sit down as a group and go over the strategy for the coming week,” said Niemeyer. “I get them involved intellectually. Then I get out of their way.” *** Terry Pope: When Pope began his farming career in 1973, working the land was his favorite part of the job. “Now (37 years later), I like the challenges of management, of calculating risk and benefit,” said the 900acre Burnside farmer. After graduating from Terry Pope the University of Illinois in 1973, Pope began farming with his father and grandfather. He rented 80 acres and worked for the farm for $2 an hour. Within a few years, Pope expanded the farrow-to-finish hog operation, bought out his grandfather’s livestock and equipment, and

took over primary management of the farm. Over the years, he liquidated the cattle herd and expanded the hog and grain operations. He began raising seed corn and started a custom seed harvesting business, and got out of the hog business in 1996. Off the farm, Pope has helped bring both rural water and a new hospital to the Carthage area. He spent 13 years on the local school board, six of them as president. He’s also served on the Illinois Farm Bureau board since 1993. Pope began his farming career with his wife, Debbie, and they raised four children together before Debbie succumbed to cancer in 1997. For the past 15 years, he has served as lay preacher for area congregations. In 2006, Pope married his wife, Gayle, who pastors Christ Lutheran Church in Nauvoo. *** Jamie Willrett: After Willrett came back to the farm in 1982, he worked for four years for his father, Jim. In 1986, Willrett and his father, formed the J. Willrett Farms Partnership, which was solely a grain enterprise. Two years later, Jim brought his son in on cattle feeding. The two continued to grow the farm together, until Jamie Willrett last year, when Jim passed away. Willrett has been able to grow the business to 2,560 acres of row crops and a feedlot with capacity for 5,500 cattle. In the mid-1990s, he saw potential for ultrasound’s application in the feedlot. Rather than simply using the technology, he took it to the next level. In 1996, he, his wife, Larisa, and another family farm (Larson Farms) formed Beef Performance Technology to offer the service to others. Shortly thereafter, the group added a technician, Robert Hueber, as the fourth partner. Despite his responsibilities on the farm, Willrett has been able to apply himself in both industry and community leadership positions. It was during his Illinois Beef Association presidency that he met his wife. The couple has three children, and even though they’re still young, Willrett expects one day they may want to enter the J. Willrett Partnership.


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GOVERNMENT

State budget preview launches funding debates Educators project layoffs with cuts BY KAY SHIPMAN FarmWeek

Gov. Pat Quinn’s budget preview sparked funding debates that traditionally transpire after the governor proposes a budget. Quinn is to officially unveil his budget proposal Wednesday. The governor’s preliminary budget showed more than $2 billion in potential cuts — especially to funding for elementary, secondary, and higher education — and made the case for an income tax increase. The new website {www.budget.illinois.gov} outlines the state’s current fiscal situation and its projected $11-

plus billion deficit. In other action last week, the General Assembly moved ahead on several funding-related matters. With a 63-46 vote, the House passed HB 4866, sponsored by Reps. Dan Reitz (D-Steeleville) and Jim Sacia (R-Pecatonica), which would raise fees for some programs administered by the Illinois Department of Agriculture. The Senate passed a measure giving universities the authority to borrow against payments they are

owed by the state. That measure was forwarded to the House. State Superintendent Christopher Koch testified school districts across the state may have to layoff as many as 14,000 employees, depending on the level of funding cuts the districts will have to address. In another vote the Senate fell one vote shy of approving a plan to borrow money to pay Medicaid bills. Meanwhile, the House voted to eliminate legislative scholarships, which are tuition

November 2010 deadline

Farmers told of new rules for on-farm fuel storage New federal rules will require plans from farms with capacity to store more than 1,320 gallons of fuel above ground, according to Nancy Erickson, Illinois Farm Bureau director of natural and environmental resources. Erickson discussed the new rules governing oil and fuel storage during the recent

farms that meet certain storage thresholds to develop a plan by November 2010. “EPA is developing information for farmers,” Erickson said. The rule applies to facilities — including farms — with aggregate above-ground storage capacity of more than 1,320 gallons or completely buried storage capaci-

‘If they have a separate (storage) site with several tanks down the road, our understanding is that they do not have to add the storage capacity together.’ — Nancy Erickson IFB director of natural resources

IFB Governmental Affairs Leadership Conference. Illinois has rules governing fuel storage overseen by the state fire marshal, but those rules have different gallon storage thresholds, Erickson noted. In January, the U.S. Environmental Protection Agency (EPA) finalized the Spill Prevention Control and Countermeasures (SPCC) rules. IFB and the American Farm Bureau Federation had raised concerns about the impact on farmers and worked to address those issues, Erickson said. The SPCC rules require

ty of more than 42,000 gallons. Farm operations with relatively small amounts of storage capacity and no history of spills into navigable bodies of water still have to complete a plan, but SPCC requirements for those farms are more relaxed than requirements for larger facilities. To fit the smaller-capacity category, a farm cannot have had a single discharge of more than 1,000 gallons into navigable waters within a specified time frame. The farm also cannot have had two discharges of oil of

more than 42 gallons to navigable waters within a 12month period. In addition to meeting the spill history requirement, smaller-capacity facilities must have 10,000 or fewer gallons of aggregate storage and cannot have any single above-ground storage container with capacity for more than 5,000 gallons. Erickson added Farm Bureau interprets the rule to mean that a farm does not have to add together the fuel storage capacity at separate sites. “If they have a separate (storage) site with several tanks down the road, our understanding is that they do not have to add the storage capacity together,” Erickson said. Facilities that meet the smaller-capacity category may use an EPA plan template and do not have to have a plan certified by a professional engineer. Facilities that have 10,000 or fewer gallons of aggregate storage and a single tank with storage capacity of more than 5,000 gallons would fall in a second tier category and may also self-certify a plan. The larger facilities with more than 10,000-gallon storage capacity must have a plan approved by a professional engineer. Additional information about how the rules apply to Illinois farms will be published in the future. — Kay Shipman

waivers for state universities. Representatives pointed out the universities have to absorb the cost of the waivers that are awarded by every member of the General Assembly. The legislation was forwarded to the Senate. Lawmakers and educators received the good news that Illinois is one of 16 state finalists for federal education funding. An Illinois delegation will travel to Washington, D.C., in hopes of securing $510 million from the competitive “Race to the Top” grant program. States are vying for a share of $4.35 billion in federal stimulus funding for education reform and to increase student achievement. Awards are to be announced by April 1.

Courthouse book preserves every county’s historic past Illinois’ architectural grand ladies come alive in a new glossy book, “Illinois Courthouses: An Illustrated History,” published by the Illinois Association of County Board Members and Commissioners. “Our board felt that historic courthouses needed to be documented,” said Kelly Murphy, the association’s executive director. Murphy exhibited the book at the recent Illinois Farm Bureau Governmental Affairs Conference in Springfield. Each county is represented by photos and drawings, in some cases, of historic courthouses as well as modern ones. Historical information about the county and interesting facts are included. For example, the world’s first softserve ice cream cone was served in Kankakee. Author and photographer Dennis Weiser also provided information and images of the state’s capitols and Abraham Lincoln’s experiences as a courthouse lawyer. Murphy suggested the book would be a nice addition to community and school libraries’ collections. “This book speaks well of the citizenry of Illinois,” Murphy noted. It shows that people valued and invested in their local government even in poor financial times, Murphy said. A copy of the 160-page, full-color book may be ordered through the association for $37.70, which includes tax. For more information or to order a book, contact the association at 217-528-5331. Information also is available online at {www.ilcounty.org}. — Kay Shipman

DATEBOOK 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 12-13 University of Illinois College of Agricultural, Consumer, Environmental Sciences ExplorACES, Urbana. For information call, 217-333-2728 or go online to {aces.illinois.edu/ExplorACES/} March 16 Illinois Ag Legislative Day. Howlett Building, Capitol Complex, Springfield.


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EMERGING ISSUES

Will winter snow become spring floods? BY DANIEL GRANT FarmWeek

Heavy snowfall this winter combined with potential spring rains could add up to a very sloppy start to the planting season. Soil moisture in the state as of March 1 was rated 42 percent adequate and 58 percent surplus, the National Agricultural Statistics Service Illinois state office reported. And this follows what typically are the two driest months (January and February) of the season, according to Steve Hilberg, director of the Midwestern Regional Climate Center (MRCC) in Champaign. “That (saturated soils) could be an issue” in coming weeks, Hilberg said. “The ground will slowly thaw, but it doesn’t look like we’ll get out of the cool-weather pattern through the first half of March.” Seasonal snowfall in Illinois as of last week totaled 52.4

inches in Chicago, 49.4 inches in Rockford, and 41.5 inches in Peoria. The snowfall amounts ranged from 12.2 to 20.5 inches above normal, according to Hilberg. Meanwhile, precipitation for the meteorological winter (December through February) ranged from 5 to 11 inches across the state, according to MRCC. About 10 inches of snow reportedly equal an inch of rain. “We have a potential for major flooding similar to 2008,” Bryce Anderson, DTN ag meteorologist, told the RFD Radio Network. “We’ve had snowcover as of mid-February that was deeper than it was two years ago over the northwestern half of the Corn Belt,” he continued. “When you couple that with the idea we probably will have several precipitation events develop (in March), there’s just nowhere for that water to go.” Meanwhile, the average

temperature in Illinois for February remained well below average at a preliminary reading of 25.1 degrees. The average temperature from December through February was 1 to 3 degrees below normal in Northern Illinois; 3 to 4 degree below normal in Central, Eastern, and Southern Illinois; and 4 to 5 degrees below normal in Western Illinois, according to MRCC. “This has been one of the more prolonged winters we’ve had, in terms of snow on the ground and persistently cold temperatures, probably since the mid-1990s,” Hilberg said. He reported the Champaign-Urbana area this meteorological winter had at least an inch or more of snow on the ground for 49 of 91 days compared to the average of 22 to 23 days. Overall, snowfall for the season was about 1.5 times normal in Central and Northern Illinois. The cold February, along

with the colder-than-normal temperatures in December and January, made this winter

the 19th coldest on record, according to State Climatologist Jim Angel.

Officials keeping watch on rivers and water tables BY KAY SHIPMAN FarmWeek

Illinois officials are monitoring rivers for possible flooding, while water table levels already are high in Mason County. During a spring flood briefing, the

FarmWeekNow.com Visit FarmWeekNow.com to view the potential spring flooding potential across the state.

National Weather Service reported an elevated risk of flooding along the Mississippi River from Dubuque to Hannibal,

resulting from near-record snowpack in Iowa and Minnesota. Farther south, the St. Louis area had a 10 to 15 percent chance for higher river flows due to significant snow in the northern Missouri River basin. The probability for March flooding in the Ohio River Basin was high due to heavy snowfall in the Northeast. Most rivers in Illinois are at increased risk of flooding, but major floods were not anticipated, according to engineers with the Illinois Department of Natural Resources. Mason County residents, especially in

the Sand Lake area, have seen high water table levels nearly equal to the high levels of 1995. Currently, the Illinois State Water Survey (ISWS) is collecting measurements at Sand Lake, according to Ken Hlinka, an ISWS groundwater hydrologist. In 1995-1996, the groundwater flooding at Sand Lake lasted for one and a half years and was 5 feet deep at its lowest area. “Groundwater flooding is unusual. It (water) comes from underneath,” Hlinka explained. Since 1995, management practices, such as outlets in artificial berms that

had held back water, were implemented, Hlinka noted. “It’s (flooding) more manageable now,” he added. Mason County Farm Bureau member Morris Bell said no one knows how long the water tables will be high or when farmers will be able to enter fields in that area. He speculated several acres may not be farmed this year due to groundwater flooding. Groundwater in the area discharges into the Illinois River. “When river levels are high, it (groundwater) backs up to the surface,” Hlinka said.

New ranges in crop prices could require altered sales strategies Farmers three to five years ago didn’t have much price risk to worry about when the corn market often was locked in the range of $2 to $2.50 per bushel. But now that the corn market has moved by as much as $4.50 per bushel in a single year and the soybean and wheat markets by even higher amounts, it may be time for farmers to reconsider their sales strategies,

according Rob Huston, AgriVisor market analyst. Huston and Brian Henry, account executive with Archer Financial Services, last week discussed price risk management at the CME Group booth during the Commodity Classic in Anaheim, Calif. “Three to five years ago, there wasn’t a great need for options,” Huston told

Russia to reopen market to U.S. pork The United States and Russia have reached an agreement to reopen the Russian market to U.S. pork and pork products, Agriculture Secretary Tom Vilsack said Friday. “Reopening the market with Russia — our fifth largest market last year — is excellent news for American hog producers,“ said Vilsack. Russia imported $257 million worth — 6 percent — of U.S. pork and pork variety meat exports last year. In December 2009 Russia notified USDA of its intent to restrict pork shipments from 13 U.S. pork plants, which accounted for more than 90 percent of U.S. pork exports to Russia. The next step is for U.S. plants that want to export to Russia to apply for approval with the Agricultural Marketing Service (AMS).

FarmWeek. “Now, when you see the price of corn move $8 to $3.50 (per bushel) in a year, these strategies (options) make a lot more sense because the volatility and risk is so much greater.” Henry said option strategies can enhance cash sales while limiting margin exposure. He is advising farmers to make some cash sales for this year or get hedge-to-arrive contracts on the books and then possibly look to re-own a portion of the grain via call options or call option spreads. “Once you get some sold and the market goes down to the bottom, if you look at calls, you get an opportunity to re-own some of that (crop),” he said. Henry believes the corn market could reach its bottom this month before pressure for acres this spring adds firmness to the market.

Meanwhile, he predicted a possible record soybean harvest in South America could keep a lid on soybean prices near-term but a tight carryout in the U.S. (210 million bushels) could pressure prices to move higher if there’s any production problems around the world or if there is a spike in demand. Henry also believes crude oil prices could move higher this

summer as the U.S. crude oil surplus is reported to now be in a deficit and refining has tapered off. “There could be product (crude oil) tightness this summer,” he said. The commodity that is not in short supply at the moment is wheat. Henry seemed the least optimistic about that market in the near-term. —- Daniel Grant

Deductions Continued from page 1 decision to take the deduction along with patron 1099s. Manager Delmer Castor told FarmWeek this year’s deduction would provide the co-op “working capital” to improve facilities and services. “We just need to show the patrons that this deduction their elevator’s going to be taking is going to benefit them somehow,” FBFM’s Cullison argued. “I think most farmers are reasonable enough to see that if there is a benefit to them economically — faster service, better dryers, more patronage — things will be fine. (Co-ops) just need to address the frustration out there now.” — Martin Ross


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ENERGY

EPA official: Land use science is ‘evolving’ BY MARTIN ROSS FarmWeek

While disputed by corn ethanol interests and subject to continued reinterpretation and refinement, indirect land use change is “still a significant piece” of federal biofuels policy. That’s according to Sarah Dunham, acting director of the U.S. Environmental Protection Agency’s (EPA) transportation and climate division. Dunham notes EPA received “lots and lots of comments” on carbon “lifecycle” requirements for biofuels under the revised renewable fuels standard (RFS2). Those included concerns about calculations on the possible impact of corn-based ethanol on global land use shifts and related greenhouse gas (GHG) emissions. Existing corn-based plants are “grandfathered” in under RFS2 requirements that “conventional” ethanol reduce GHG emissions by 20 percent. Further, EPA determined corn ethanol production and use would have significantly less

land use impact than originally predicted, Dunham said. She acknowledged corn yields have “improved as a function of price,” and cited data from the Chicago-area Argonne National Laboratory pinpointing higher ethanol co-product value as a feed supplement/replacement. High-quality satellite data provided more detail of ongoing land shifts, and EPA added “significantly more detail” to land models, breaking general land use classifications into precise categories such as croplandpasture, forest-pasture, forest, Conservation Reserve Program acres, and developed land. “There’s no question the science has evolved significantly over the last year through this process or that it’s going to continue evolving moving forward, Dunham said. Among more controversial aspects of EPA’s analysis were conclusions concerning Brazilian sugar cane ethanol vs. corn ethanol. EPA determined cane ethanol would generate more significant acreage shifts per gallon than corn ethanol, but

Commodity group leaders: Biofuels critical to future BY DANIEL GRANT FarmWeek

U.S. farmers in recent years have shown they can grow enough grain to satisfy demand for food and fuel. Domestic production of corn and soybeans last year set new records. Therefore, regulations or legislation that limit or reduce the use of corn-based ethanol and soybeanbased biodiesel will hurt the farm economy and the overall U.S. economy, according to farm leaders last week at the Commodity Conference in Anaheim, Calif. “We can provide fuel and food (to meet demand) without any more land,” Tim Lenz, Tim Lenz president of the Illinois Corn Growers Association (ICGA), told FarmWeek. In fact, “our yields are increasing enough that if we don’t expand uses, we’ll be back to low prices and surpluses.” Lenz and leaders of ICGA and the Illinois Corn Marketing Board last week met with the California Air Resources Board to promote the continued use of Midwest ethanol to help satisfy a market for 1.5 billion gallons of renewable fuel. “What does (the California market) mean to corn growers?” Lenz said. “It’s about one-tenth of the gasoline market.” Meanwhile, the vast majority of biodiesel production in the nation has been shut down due to the expiration of the biodiesel tax incentive. The shutdowns throughout the industry have resulted in the idling of 23,000 workers, according to Rob Joslin, president of the American Soybean Association. “Our top priority continues to be the passage of the biodiesel tax incentive,” Joslin said. “The longer it goes, the harder it will be to get (biodiesel production) restarted.” Biodiesel production last year added about 25 cents per bushel to the price of soybeans, Joslin said. In other news from the Commodity Classic, the National Corn Growers Association announced it is launching a new image/activism campaign to combat negative attacks on the industry. “The attacks aren’t going away,” said Darrin Ihnen, NCGA president. “We’re not going to let them beat us back.” The campaign includes a new call for membership and activism. NCGA through the Corn Farmers Coalition also will continue to target lawmakers with information to help them understand the industry.

argued emissions related to those changes would be lower than per-acre emissions associated with corn ethanol production. As a result, Brazilian ethanol scored a 50 percent reduction in GHGs over gasoline, qualifying

as an RFS2 “advanced biofuel.” Mandated conventional ethanol use is limited to 15 billion gallons of a total 36-billion-gallon target for 2022, while advanced biofuels will make up much of the remain-

ing 21 billion gallons. “Based on our results, an ethanol pathway for sugar cane produced in the U.S. would also qualify (as an advanced biofuel),” Dunham said. “We’re country-neutral here.”

Ethanol exec on California panel Midwest ethanol will have a seat at the table as California takes a fresh look at biofuels land use issues. Mark Stowers, vice president for science and technology with Iowa-based ethanol producer Poet, serves on a new expert working group set to advise the California Air Resources Board (CARB), the West Coast regulatory body that spearheaded the state’s new lowcarbon fuel standard (LCFS). Under the LCFS’ controversial indirect land use change criteria (see accompanying story), corn ethanol scores poorly in greenhouse gas (GHG) reductions relative to other fuels. Ethanol interests charge the rule blocks Midwest biofuels. Stowers, whose group will help CARB “take a more careful look” at land use, stressed the ample U.S. acreage available

for food and fuel production and noted “the cropland that’s out there is becoming more and more productive.” “The statistics clearly show that deforestation has decreased in Brazil, for example, compared with an increase in biofuels production in the United States,” Stowers said in a FarmWeekRFD Radio interview. “Quite honestly, we have enough cropland here in the United States to produce biofuels, food, and fiber. We really see this as an opportunity to help provide information on farming practices in the Midwest that they may not be as familiar with in California.” The 30-member working group includes representatives of California agencies, the U.S. Environmental Protection Agency (EPA); universities, environmental groups, the oil industry, and

the European Union (EU). The group will meet through October, exploring the validity of land use models, differences in California and EPA data, and whether land use criteria should be applied to other fuel sources such as oil extracted from tar sands. Poet plans to process fuel from corn cobs as well as continuing its starch-based production at an Emmetsburg, Iowa, facility. The resulting fuel should offer an 81 percent reduction in emissions compared with gasoline, Stowers said. “There’s a real challenge with the way California perceives corn and ethanol production in the Midwest,” he nonetheless noted. “It makes it very difficult, if not impossible, for our industry to bring ethanol into California.” — Martin Ross


FarmWeek Page 6 Monday, March 8, 2010

BIOTECHNOLOGY

Population catching up to politics in GMO debate? BY MARTIN ROSS FarmWeek

While pressing food needs are driving global appetites for biotechnology, politics and policy remain key hurdles to using science to feed growing populations, according to Illinois Farm Bureau economist Mike Doherty. Participants in a recent Council for Agricultural Science and Technology roundtable, cited a dual challenge to bolstering food supplies through biotechnology — U.S. agencies that have hindered promotion of U.S.approved biotech products in other countries and “the politics within those countries” that pose a further deterrent, Doherty related. Mark Cantley, former European Commission science adviser, agreed technically advanced nations “cannot be seen pushing our biotech on other countries.” But Cantley called the U.S.’ “extensive network of regulatory agencies” — USDA, the Environmental Protection Agency, the Food and Drug Administration — “a hindrance to biotech adoption overseas.” World population may reach 9 billion by 2050 and, according to U.S. State Department science adviser Nina Fedoroff, the world’s available arable land “has not changed in more than half a century.” Biotechnology is

“absolutely critical” in feeding the masses, she argued. “If everybody had our biotech, we would have much larger world production of the basic commodities,” Doherty said. “A lot of the difficulty in trying to feed 9 billion people is that biotech adoption rates in a lot of countries are amazingly low compared with the United States. “Our regulatory agencies and their politics are part of the bottleneck. We need to change our priorities. U.S. assistance to ag development has really fallen since the ‘80s. Investments in ag research now are only about 2 percent of what’s going to biomedical research. That’s telling.” At the same time, he acknowledged Africa’s continued interest in GMO crops and reduced activist resistance to Brazilian biotech adoption. Last year, Brazil surpassed Argentina as the second largest biotech crop producer after the U.S., with GMO acreage up 35 percent over 2008. Meanwhile, China has issued biosafety certificates setting the stage for release of biotech insect-resistant rice and phytase corn that could help reduce phosphorous runoff from livestock. Chinese clearance for GMO rice could pave the way for widespread Asian adoption.

European approval ‘first step’ Breaking a nearly 12-year regulatory stalemate, the European Commission (EC) has cleared production of a GMO potato and commercialization of three added biotech corn varieties for food and feed uses and importation. EC Health and Consumer Policy Commissioner John Dalli reported that after “extensive and thorough review,” he saw “no new scientific issues that merited further assessment.” BASF’s Amflora potato, designed for industrial starch use, is the first GMO crop approved for European Union (EU) production in more than a decade. The EC also OK’d Monsanto’s double-stacked Yieldgard/Yieldgard Rootworm and Yieldgard/Roundup Ready corn products and a “triple stack” combining all three traits. Sharon Bomer Lauritsen, Biotechnology Industry Organization executive vice president for food and agriculture, called EC approvals “an encouraging first step toward remedying an impasse that has put EU farmers at a disadvantage in the competitive marketplace.” The decision “mirrors the evolving change in attitude I’ve seen in European audiences in recent years,” Illinois Farm Bureau Senior Commodities Director Tamara White said. After a decade of nearly complete blockage of new GMO crops under“a complicated and lengthy approval process, she sees the EU “finally moving forward with a more workable system.” “The European farmers I know who have had experience growing biotech crops — for example, corn in Spain — have been very pleased with the products and eager to have access to more,” White related. “European farmers have worried about losing their competitive edge in international markets. In addition, I’ve noticed growing acceptance among European consumers of the use of biotechnology in crops, food products, and pharmaceuticals.” Lauritsen nonetheless stressed “a lot more needs to be done”: Another 17 biotech products are awaiting EU approval for production, and 44 are awaiting authorization for food and feed use, importation, and processing. Six European countries planted 234,000-plus acres of biotech crops in 2009, down from seven countries and 266,000 acres in 2008. Germany discontinued production, and it and Austria protested new EC approvals. — Martin Ross

Africa needs ag technology; Money, education are key Africa needs new technology. African producers are eager for it. Major challenges include the relatively steep price of technology and the steep learning curve involved in using it sustainably. The Decatur-based Howard G. Buffett Foundation thus is working with leading ag scientists to put knowledge and seeds on the ground where they are acutely needed. Howard Buffett notes Africa possesses “some of the oldest, most weathered soils in the world,” with highly or moderately productive soils accounting for only about 7.5 percent of the continent. “In the United States, it’s about 30 percent,” Buffett told FarmWeek. “The African continent has more than 200 percent more people and 200 percent more land. More nutrition-efficient uptake through root systems, drought tolerance, pest- and virustolerant crops — all of those things are going to be important to farmers in Africa. “The challenge is, at what entry point do those things work? How do you get them distributed? How do you train producers? What’s a sustainable system for seeds that have additional value when farmers can’t afford to pay for them?” Buffett and Company are partnering on several fronts to tackle African production issues: • The foundation is working with the International Maize and Wheat Improvement Center to reproduce drought-tolerant crops for distribution to smaller seed dealers and farmers in Africa. An estimated 163 acres planted in 2009 should generate 11,000 tons of seed — ideally enough to feed 6.2 million people per year. “We’re hoping to double the size of that production in the next couple of years,” Buffett said. • The Rodale Institute is helping analyze cover crops and cropping systems that could protect African soils, particularly in tandem with livestock production. Buffett sees no-till and minimum tillage practices as “critical” to continued sustainability in Africa. • The St. Louis-based Donald Danforth Plant Science Center is looking at ways to improve nutrient uptake in root systems under dry conditions, through either GMO or non-GMO development. The center is studying cassava, cowpeas, and other African crop staples. Pennsylvania State University also is working to develop corn and bean varieties that thrive in drought conditions and low-fertility soils. “That’s kind of our entry point into how we responsibly and appropriately use some of these new varieties in the environment in which we’re trying to work,” Buffett said. “We have four great partners, and I think we’ll get some synergies from that.” — Martin Ross


FarmWeek Page 7 Monday, March 8, 2010

PRODUCTION

Illinois soy yields decent despite weather challenges BY DANIEL GRANT Far mWeek

The National Agricultural Statistics Ser vice Illinois field office recently released the 2009 county yield estimates for soybeans in the state. And the data showed a wide range of yields last year — from a low of 32 bushels per acre in Jefferson County to a high of 56 bushels per acre in Champaign and Piatt counties. Overall, most yields were decent and some even better than expected despite extensive planting delays and cool and wet weather that prevailed throughout the 2009 season, according to Brad Schwab, Illinois state statistician. “There really weren’t any major disasters,” Schwab told Far mWeek. “And I think some far mers’ expectations were exceeded.” The ten counties with the highest soybean yield averages last year were Champaign and Piatt (56); Carroll, DeWitt, Ver milion, Christian, Douglas, and Moultrie (55); and McLean and Ford (54). “One thing soybeans like is a lot of rain, and there was no shortage of that (in 2009),” Schwab said. “So if you could get it (a soybean crop) in the ground, there were plenty of opportunities.” The state soybean yield last year was estimated at 46 bushels per acre, down

one bushel from 2008. But production in 2009 (430.1 million bushels) was slightly above that of 2008 due in part to the fact Illinois far mers increased soybean plantings by 200,000 acres. The 2009 soybean crop in Illinois did not challenge the production records set in 2004 of 495 million bushels with an average yield of 50 bushels per acre. Nationwide, however, the 2009 soy crop set new records of 3.36 billion bushels with an average of 44 bushels per acre. Here is a look at how other crops fared last year in Illinois: • Wheat production decreased 38 percent. The final yield for the 2009 winter wheat crop was 56 bushels per acre, down 8 bushels from the previous year. • The 2009 yield for sorghum for grain was 82 bushels per acre, down 21 bushels from 2008. Production from 2008 to 2009 declined 62 percent. • Oat production last year (1.6 million bushels) declined 23 percent from 2008. The final yield (65 bushels per acre) was down 5 bushels from the previous year. • Production of all hay in 2009 was 2 million tons, which was 7 percent more than in 2008. Yields averaged 3.9 tons per acre for alfalfa hay and 2.5 tons per acre for all other hay. County yield estimates for corn will be released March 26. Those estimates were delayed due to the late har vest.

Erratic weather, low prices affecting Brazilian soy crop BY PHIL CORZINE

Although the weather here in Central Illinois has been less than ideal, it’s different but no better at our company’s farms in Tocantins, where we continue to have droughts interrupted by Phil Corzine rains every two to three weeks. A rain in Illinois every three weeks in August could

finish out a good crop, but with clay soils in Brazil that get baked daily under 95- to 105degree temperatures, we need those gaps to be smaller. Our goal for this crop was an all-farms average of 45 bushels per acre, but I doubt that we can hit that now — hopefully, we have lost only a few bushels

per acre. We should start cutting our first-planted beans in two weeks. I will be back at the farms in mid-April, and we expect to be harvesting until the first of May. There are more questions right now than answers on just how big the Brazilian crop is actually going to be. I was in

Uberlandia, in the southern state of Minas Gerais, at the beginning of October and the bean crop was in and off to a great start. Farmers there were expecting yields of 55 bushels per acre or more. However, last week I was hearing that yields are coming in closer to 45 bushels per acre due to heat and erratic rainfall — exactly what we have been facing on our farms in Tocantins. A bigger problem than the weather now in Brazil is the price of soybeans. We sold

some beans last week for harvest delivery for $7.83 per bushel. After 60 cents to get the beans delivered on top of direct costs of $5 per bushel, our margin is getting thin. It will be interesting to see how this affects expectations for the 2010-2011 soybean crop in Brazil. Phil Corzine is general manager of South American Soy, a global production management and investment company. His e-mail address is pcorzine@agpage.com

Federal crop insurance sign-up deadline March 15 Illinois farmers have until next Monday (March 15) to sign up for spring federal crop insurance policies, according to Country Financial. “Increasing input costs, volatile grain markets, and uncertain weather pose risks for farmers and their grain operations. Federal crop insurance offers one way to protect farmers’ grain assets and protect themselves against a potential price decline,” said Sheri Bane, director of commer-

cial/agribusiness for Country. Farmers can further reduce risk by developing a grain marketing plan. Country Financial representatives can help farmers secure market analysis and grain contracts through AgriVisor LLC, a joint venture of GROWMARK Inc. and Illinois Farm Bureau. Country offers the following federal crop revenue and bushel protection policies to help meet the needs of farmers:

• Revenue policies — Provide protection from low yields and low market prices.

FarmWeekNow.com Use our online crop insurance calculators from FarmDoc to help make insurance decisions. They’re at FarmWeekNow.com.

Revenue policy products include: Revenue Assurance (RA), Crop Revenue Coverage (CRC), Income Protection, (IP) and Group Risk Income Protection (GRIP). • Bushel protection

policies — Provide protection against loss of production. Bushel Protection Policy products include: Multiple Peril Crop Insurance (MPCI), Catastrophic Risk Protection (CAT), and Group Risk Protection (GRP). “Federal crop insurance is a complex product, and farmers have different needs,” said Bane. “Country recommends farm operators and managers meet with certified federal crop representatives to compare the vari-

ous products and decide which policy is best for their situation.” Country is among the leading federal crop insurers in Illinois. In addition to federal crop insurance, Country also offers crop hail insurance for hail, vandalism, and fire damage to standing crops not covered by federal crop insurance. The GrainGuard policy provides protection for harvested grain and offers additional replant coverage options.


FarmWeek Page 8 Monday, March 8, 2010

FB IN ACTION

Illinois Farm Bureau’s new academy tests leaders’ skills BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau’s inaugural Leadership Academy supplied participants with food for thought and an opportunity to fine-tune their skills, according to participants who spoke

with Far mWeek. Eleven Farm Bureau leaders from around the state recently participated in a unique leadership training program over two and a half days in Springfield. The Leadership Academy will be offered every two years and will offer hands-

Knox County Farm Bureau leader Ted Mottaz, left, works with Adams County Farm Bureau leader Terry Smith on a team issue project during the recent Illinois Farm Bureau Leadership Academy.

on training and presentations from industry and business leaders. Bureau County Farm Bureau leader Rob Sharkey of Bradford described how participating teams were challenged to quickly develop a response plan geared toward media and legislators on an issue. Teams had to react quickly but in a positive, controlled manner, he explained. “It was a real eye-opener on how up (to date) we have to be on the issues,” Sharkey said. Knox County Farm Bureau leader Ted Mottaz of Elmwood pointed out the team activity gave Farm Bureau leaders a feel for the need for quick reaction in real life. Mottaz particularly appreciated the information he gained from a presentation on leader ethics. “It’s something we really need to listen to and pay attention to, especially in the political climate we’re in,” Mottaz said. Fine-tuning of communication skills was one benefit appreciated by Adams County

Farm Bureau leader Terry Smith of Clayton. “It wasn’t like finding some new thing, but more reinforcing that what I was doing was right,” Smith explained. “I worked on listening more to make sure what I heard — not what I wanted to hear.” County Farm Bureau boards nominated up to two leaders for the academy. Participants were selected from the nominee pool by a panel of three judges representing

academia, agribusiness, and a past IFB board member. Sharkey, Mottaz, and Smith agreed the training was worthwhile and challenging. Although the academy participants already were leaders, they may benefit by gaining additional skills, according to Sharkey. “We aren’t necessarily as prepared as we think, and we have to step up if we’re going to defend this industry,” Sharkey summarized.

Cook County FB donates food, $4,906 on Food Check-Out Day Cook County Farm Bureau (CCFB) celebrated Food Checkout Day on Feb. 25 with a presentation at the Ronald McDonald House near Advocate Hope Children’s Hospital in Oak Lawn. Volunteers and staff started the day with a shopping spree at Jewel/Osco in Oak Lawn. The spree featured a friendly competition between the mayor of Oak Lawn, Dave Heilmann, and the village clerk of Evergreen Park, Cathy Aparo, shopping for eight minutes to collect items that contained soy and/or corn in the ingredients. Money for the shopping spree was provided through grants by the Illinois Corn Marketing Board and the Illinois Soybean Association. With the grant funds, CCFB was able to increase its food donations by 1,055 pounds, which brought the total of food donations to 3,907 pounds of non-perishable food items. Mike Rauch, chairman of Food Check-Out Day, presented a check for $4,906.68 to the Ronald McDonald House from the members of the CCFB and the CCFB organization. More than 44 pounds of pop tabs were collected to raise additional funds from recycling. Coverage of the event was provided by the Southtown Star and Channel 4 local access news. The items were presented to the Ronald McDonald Houses for use by families that stay in the houses while they support their children suffering from severe illnesses. In attendance at the Feb. 23 event were CCFB board members and staff; house managers from the four Chicagoland area Ronald McDonald Houses; Doug Porter, executive director of the Ronald McDonald Houses; and many volunteers and staff. The Chicago North Country Financial agency manager and his agents cooked a wrap-up meal for the group attending the event and the families staying at the house. Bob Rohrer is manager of the Cook County Farm Bureau. He can be reached at 708-354-3276.

WIU bull sale set for March 19 Western Illinois University’s (WIU) beef evaluation station will have its annual performance tested bull sale beginning at 7 p.m. Friday, March 19, in the WIU Livestock Center, located a mile west of Highway 67 on Tower Road in Macomb. Fifty bulls are for sale, according to Ken Nimrick, associate professor. The breeds represented are Angus, Charolais-Angus hybrids, Red Angus, Simmental and Simmental-Angus hybrids. All bulls are Merial SureHealth certified and tested free of Johne’s disease. The bulls also tested free of persistently infected BVD (Bovine virus diarrhea) and genetic defects and have completed a breeding-soundness exam and are ready for the upcoming season. “Extensive production information is available about these bulls to help breeders improve their herds through known genetic information,” said Nimrick. In addition to average daily gain and feed efficiency information, data also will be provided on each bull’s ribeye area, 12th rib fat, marbling, scrotal circumference, pelvic area, frame score, and birth weight. The bull testing station is open daily for anyone interested in seeing the bulls before the sale. For more information, to request a sale catalog, or to schedule a viewing, contact Nimrick at 309-298-1288, Bruce Engnell at 309298-2233, or the WIU School of Agriculture at 309-298-1080.


FarmWeek Page 9 Monday, March 8, 2010

FROM THE COUNTIES

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UREAU — Farm Bureau will sponsor a bus trip Thursday, April 29, to Circa 21 Dinner Playhouse to see the play “Church Basement Ladies.” Lunch will be included. Cost is $72. Reservations are due to the Farm Bureau office by Monday, March 15. Call the Farm Bureau office for more information. • Bureau, Henry, and Stark County Farm Bureaus and the Kewanee Fire Department will sponsor a Surrounding Area Farm Emergency course for fire, rescue, and emergency medical service providers. The training will be at the Kewanee Fire Department on May 1. Cost is $10. Call the Farm Bureau office at 815-875-6468 for more information. HAMPAIGN — Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker at an “On the Road” seminar at 7 p.m. Wednesday, March 17, at the Farm Bureau auditorium. Topics will include unified carrier registration, ATV use on public roads, the federal bridge formula, and medical card changes. Call the Farm Bureau office at 217-352-5235 for more information. LAY — Farm Bureau will sponsor its annual “Farmer Share of the Dollar” breakfast from 6 to 9 a.m. Monday, March 15, at the Farm Bureau office. Cost is 20 cents. Call the Farm Bureau office at 618-665-3300 for reservations or more information. OLES — The Young Leader social will be at 6:30 p.m. Wednesday at Joe’s Sports Bar, Mattoon. Call the Farm Bureau office for more information. DGAR — Dan Zwicker, ADM Marketing, will be the speaker at a market outlook breakfast meeting at 7 a.m. Wednesday at the Crossroads Restaurant, Chrisman. Call the Farm Bureau office at 217-465-8511 for reservations or more information. • The Paris Young Farmers Committee will sponsor its annual consignment auction at 9 a.m. Saturday at the Edgar County Fairgrounds. Call Dirk Nail at 217-822-3266, Scott Henson at 217-304-3591, or Blake Marrs at 217-822-4943 if you have items to consign. Proceeds will benefit scholarships for Edgar County youth. • Randy Allen, RWA Financial Services, Austin, Texas, will be the speaker at a market outlook seminar at 7:30 a.m. Monday, March 22, at the Edgar County Bank, Paris. A continental breakfast will be served. Call the Farm Bureau

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office at 217-465-8511 for reservations or more information. • Farm Bureau will sponsor a bus trip Wednesday, May 12, to the Beef and Boards Dinner Theatre, Indianapolis, Ind. The group will see the matinee performance “Always ... Patsy Cline.” Cost is $68, which include bus, show, lunch buffet, and all gratuities. Call the Farm Bureau office at 217465-8511 for reservations or more information. FFINGHAM — The annual meeting will be at 6:15 p.m. Monday (today) at the Farm Bureau office. Dinner will be served. Rich Guebert Jr., Illinois Farm Bureau vice president, will be the speaker. Call the Farm Bureau office at 217342-2103 for reservations or more information. • Farm Bureau will sponsor a dinner and entertainment evening in honor of the 92nd annual meeting at 6:30 p.m. Monday, March 15, at the Teutopolis Knights of Columbus. The Sawyer Brothers will provide the entertainment. Cost is $3. Reservations and payment are due by Tuesday. Call the Farm Bureau office at 217-3422103 for more information. • The Prime Timers will sponsor a lunch and Master Gardener workshop at noon Tuesday, March 23, at the Farm Bureau office. Tony Bratsch, Extension educator, will be the speaker. Cost is $7. Reservations and payment are due Monday, March 15. Call the Farm Bureau office at 217-3422103 for more information. ENRY — Elwynn Taylor, Iowa State University Extension climatologist, will be the speaker at a market outlook dinner meeting at 6:15 p.m. Thursday, March 18, at the Moline Viking Club. Cost is $18. Call the Farm Bureau office at 309-937-2411 for reservations or more information. • District 3 Young Leaders will attend a Quad City Mallards hockey game at 7 p.m. Saturday, March 20. Call the Farm Bureau office at 309937-2411 for tickets or more information. NOX — Farm Bureau will host the Ag Day for Kids from 9 a.m. to 2:30 p.m. Thursday at the Carl Sandburg College, Galesburg. More than 400 fourth grade students will learn about dairy, pork, corn, soybeans, and more. Call the Farm Bureau office at 309-342-2036 or email kwagahoff@knoxcfb.org for more information. ASALLE — The LaSalle County Farm Bureau Board of Directors and Viewpoint Committee will sponsor a Call-a-Thon from 7 to 8 p.m. Monday (today) for

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the purpose of collecting new ideas, concerns, and needs of LaSalle County Farm Bureau members. Members in each district will be called. Those who don’t receive a call should contact their district director or the Farm Bureau office at 433-0371. EE — The Public Relations Committee will sponsor the annual Farmer’s Share breakfast from 8 to 11 a.m. Saturday, March 20, at the Loveland Community Building, Dixon. The breakfast is in honor of National Ag Week. Cost for the sausage and pancake breakfast is 50 cents, representing the amount of income a farmer receives from a pancake and sausage breakfast. IVINGSTON — The Women’s Committee will sponsor a bus tour Friday, April 16, of the Barn Quilts of Kankakee County. The bus will leave Dave’s Super Market, Fairbury, at 7:30 a.m. and from the Farm Bureau office at 8 a.m. Lunch will be at the Old Country Buffet, Kankakee. Cost is $22 for members and $25 for non-members and includes lunch. Call the Farm Bureau office at 815-842-1103 or e-mail livcf@verizon.net for reservations or more information. CDONOUGH — Farm Bureau will sponsor a task force meeting at noon Friday at the Farm Bureau office. Lunch will be served. Those attending will be asked to consider the following question: “If we could only do one thing this year as an organization, what would you want us to do?” Call the Farm Bureau office at 309837-3350 by 4:30 p.m. Thursday for reservations or more information. ERCER — The Women’s Committee and the Mercer County Health Department will sponsor a free health screening program Wednesday, March 17, at the First Baptist Church, Aledo. A free breakfast will start at 7 a.m. followed by a variety of health screenings from 7:30 to 10 a.m. Screenings are prostate cancer blood test, oral cancer, blood pressure, skin cancer, and a hearing test from 9 to 10 a.m. Free tetanus shots will be given. Call the Farm Bureau office at 309582-5116. • Mercer County Farm Bureau Foundation scholarship applications are available by contacting the Farm Bureau office at 309-582-5116. • The Marketing Committee will sponsor a National Ag Week trivia contest Monday through Friday on WRMJ Radio. Red meat certificates will be given to the winners. • The Prime Timers will meet at noon Thursday, March

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25, at the Farm Bureau office for a potluck lunch and a presentation about the American Red Cross organization. Call the Farm Bureau office at 5825116 for reservations or more information. ONTGOMERY — The Montgomery County Farm Bureau Foundation has six $1,500 scholarships available to Montgomery County Farm Bureau students or members who are pursuing an ag-related field of study during the 2010-2011 year. Applications are available on the website {www.montgomerycountyfb.com}. Call the Farm Bureau office at 217-532-6171 for more information. IATT — Farm Bureau and the Monticello FFA will sponsor a National Ag Day breakfast from 7:30 to 8:15 a.m. Friday, March 19, at the Monticello Community Building. Tim Berry, Piatt FSA office, and Robert Reese, WCIA Channel 3, will be the speakers. Call the Farm Bureau office at 762-2128 for reservations or more information. • The Legislative Committee will sponsor a meeting at 9 a.m. Monday, March 15, with state Rep. Chapin Rose (RMahomet) at the Farm Bureau office. The Illinois Fair Map Amendment will be discussed. Call the Farm Bureau office at 762-2128 for reservations or more information. • The Piatt County Farm Bureau Foundation scholarship applications are available at the Farm Bureau office or by emailing a request to piattfb@piattfs.com. Deadline to return applications is 4 p.m. Friday, April 9. Call the Farm Bureau office for more information. OCK ISLAND — Elwynn Taylor, Iowa State University Extension climatologist, will be the speaker a market outlook dinner at 6:15 p.m. Thursday, March 18, at the Moline Viking Club. Mike Schaver, Gold Star FS grain merchandiser, will give an update. Cost is $18. Call the Farm Bureau office at 309736-7432 or the Rock Island Extension office at 309-7569978 for reservations or more information.

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Auction Calendar Tues., Mar. 9. 10 a.m. 80 Ac. Livingston Co. Raymond E. Finfgeld Estate, KERNAN, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc .com Wed., Mar. 10. 10 a.m. 600 Ac. McLean Co. Raymond E. Finfgeld Estate, COLFAX, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc .com Wed., Mar. 10. 10 a.m. Excavation eq. Bicksler Excavating, Inc.,

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TARK — Farm Bureau and the State Bank of Toulon will sponsor an ag outlook breakfast meeting at 8 a.m. Thursday at the Bistro, Toulon. Larry Acker, 3F Forecasts, and a USDA Rural Development area specialist will be the speakers. Call the Farm Bureau office at 309286-7481 for reservations or more information. • Farm Bureau will sponsor a bus trip Thursday, April 29, to Circa 21 Dinner Playhouse to see “Church Basement Ladies 2 — A Second Helping.” The bus will leave the Farm Bureau office at 10 a.m. Cost is $72. Call the Farm Bureau office at 286-7481 by Thursday, March 18, for reservations or more information. ERMILION — Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will be the speaker at an online interactive “Commodity Challenge” meeting at 7 p.m. today (Monday) at the Farm Bureau office. Members may sign up to participate with prizes awarded to the top participants in the year-long exercise. ASHINGTON — The Women’s Committee will sponsor a defensive driving course from 8 a.m. to noon Thursday and Friday at the Farm Bureau office. Those 55 and older may receive a discount on their auto insurance upon completing the two-day course. Cost is $12 for AARP and Farm Bureau members and $14 for non-members. Call the Farm Bureau office at 618-3273081 or e-mail washfb@cbnstl.com for reservations or more information. • The Women’s Committee will sponsor a spaghetti dinner at 6:30 p.m. Thursday, March 18, at the Hoyleton Community Club Building. The “Soy Spaghetti Spectacular” will feature soy-based spaghetti. Door prizes and recipes for soy-based foods will be given. Tickets are $3 and must be purchased by Thursday, March 11. Call the Farm Bureau office at 618-327-3081 or email washfb@cbnstl.com for reservations or more information.

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NEWARK, IL. Marty McConville and Joe McConville, Auctioneers. www.mcconvillerealty.com www.biddersandbuyers. com Thurs., Mar. 11. 10 a.m. Farm machinery. Gene and Julie Blue, CLINTON, IL. Mike Maske Auction Service. www.maskeauction.com Thurs., Mar. 11. 10 a.m. 1,129.48+/- Ac . Walworth Co., WI. ELKHORN, WI. Farmers National Co. Fri., Mar. 12. 10:30 a.m. Real Estate Auction. Esther Ritke, Randal Ritke, MORRIS, IL. Marty McConville and Joe McConville, Auctioneers.

Fri., Mar. 12. 9 a.m. Consignment Auction. GREENVIEW, IL. Ron Sanert, Gordon Watkins and Eldred Nehmelman, auctioneers. sanertauctions.com or topauctions24-7.com/nehmelman Sat., Mar. 13. 9 a.m. Large Estate Machinery and Antique Auction. George Borrowman Inc., NEW CANTON, IL. Sullivan Auctioneers LLC. www.sullivanauctioneers .com Sat., Mar. 13. 9:30 a.m. Farm machinery. Wiesbrock Turf Farms, SUGAR GROVE, IL. Almburg Auctioneering. www.almburgauctions.com


FarmWeek Page 10 Monday, March 8, 2010

PROFITABILITY

Landmark act from 1922 still important to farmers BY CHUCK SPENCER

Agriculture has a rich history, including some landmark laws important to farmers. One of these laws, with vital importance to all types of cooperatives, is the Capper Volstead Act. What is so important Chuck Spencer about this law? Simply put, it is a federal law passed in 1922 that provides the ability for cooperatives to exist as we know them today. Many people experience the

benefits of cooperatives on a daily basis. Agriculture cooperatives continue to change with the demands of the member-owners who use their services. As the marketplace changes, questions about market competition can surface. The U.S. Department of Justice and USDA are hosting the first joint public workshops on competition issues affecting the agriculture industry in the 21st Century and the appropriate role for antitrust and regulatory enforcement. Information reviewing the workshops can be

found at {http://www.justice.gov/at r/public/workshops/ag201 0/index.htm#overview}. Cooperatives across the nation are expressing their value this year. They help individual farmers band together to improve their ability to purchase inputs and sell their products. The rich history of service from a broad range of cooperatives can be told by you, the cooperative member-owner, directly to the agencies seeking producer input. The website listed above tells you how to send comments. It is important that producers state their support for the

Capper Volstead Act and tell the agencies that it does not need to be changed. Farmers count on the Capper Volstead Act to provide the ability to work together when competing in the global economy, while allowing their cooperatives the flexibility to respond to farmer needs in a continually changing marketplace. The demands on farmers and their cooperatives are significant. World population growth, demand for renewable products to enhance the environment, and the potential for new medical uses from farm products will require an economic and regulatory environ-

ment that encourages innovation. Our focus should be on growing an agricultural business climate rich with innovation, cooperation, and methods for the agriculture industry to recover their investment in research and development, which will in turn foster further innovation. I think most feel that the Capper Volstead Act has done just that for farmers and should be allowed to continue to do so without any changes. Chuck Spencer is GROWMARK’s director of government affairs. His e-mail address is cspencer@growmark.com.

New technology, services available to improve harvest efficiency BY DANIEL GRANT FarmWeek

Farmers who have bad memories of last season’s prolonged harvest may have particular interest in new technology and services

FarmWeekNow.com For full coverage of the Commodity Classic from Dan Grant and Alan Jarand, go to FarmWeekNow.com.

unveiled last week at the Commodity Classic in Anaheim, Calif. Many new products fea-

tured at the event, which had about 800 exhibits, were focused on harvest efficiency, boosting yields, and managing grain quality. “One of the biggest needs we’re hearing from customers is efficiency at harvest,” said Craig Hiemstra, vice president of sales and marketing for MachineryLink, which provides the largest combineleasing program in North America. “Everybody wants to reduce his harvest cost.” One method to improve harvest efficiency and possibly reduce costs is to lease

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 $33.70-$44.50 $40.92 $65.00-$71.80 $67.90 n/a n/a This Week Last Week 25,404 17,798 *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 $69.39 $68.18 $51.35 $50.45

Change 1.21 0.90

USDA five-state area slaughter cattle price Steers Heifers

This week $90.00 $90.00

(Thursday’s price) Prv. week Change $88.24 1.76 $91.00 -1.00

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 102.08 101.38 0.70

Lamb prices Confirmed lamb and sheep sales This week 373 Last week 460 Last year 553 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $130; 110-130 lbs., $110-$112. Good and choice 1-2: 60-90 lbs., $145. Slaughter Ewes: Utility and good 1-3: $55-$58. Cull and utility 1-2: $55.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 02-25-10 40.1 17.7 38.9 02-18-10 41.5 19.5 42.4 Last year 28.4 10.9 34.8 Season total 1106.3 619.1 803.7 Previous season total 823.5 777.4 777.9 USDA projected total 1400 825 2000 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

‘One of the biggest needs we’re hearing from customers is efficiency at harvest.’ — Carl Hiemstra MachineryLink

state-of-the-art combines. MachineryLink, which provides custom harvest and leases combines to producers in 33 U.S. states and western Canada, recently expanded its combine fleet with new Class VII and Class VIII John Deere and Case IH combines. “We feel we can bring extra capacity at a timely point during harvest,” Hiemstra said. MachineryLink currently has about 350 combines in its fleet. MachineryLink also introduced a new Qualified Combine Operators program in which it provides fully trained combine operators if farmers don’t have the manpower to operate leased machines. More information is available online at {www.machinerylink.com}. Meanwhile, new tools are available to help farmers manage grain quality, which was a major issue last harvest and continues to be a concern for those with grain in on-farm storage. Gil Garcia of Integris USA discussed his company’s system which features automated-control monitors for grain bins that initiate an alarm if the grain is out of condition. Moisture cables can be installed in storage facilities that allow users to see the moisture content at various levels throughout each bin and software in the system calculates the grain condition over time.

More information about the system from Integris is available at {www.integrisusa.com}. Elsewhere, new software is available that offers more

applications and options for precision agriculture. Paul Welbig, director of marketing for Raven Industries, discussed his company’s new Slingshot, which is a field hub that provides various services via a wireless connection to the cab of a tractor. The system offers RTK correction signals that improve the accuracy of steering and a fleet management tool that allows a farmer to see where all of his or her vehicles are at all times.

Milk posts another loss The Class III price for milk adjusted to 3.5 percent butterfat for the month of February was $14.28 per hundredweight. This is a 22-cent decrease from the previous month and the second month in a row that prices have been slightly lower. We are headed into the “spring flush” where cows have a natural tendendency to produce more milk. This will come at a time when a bit of a milk surplus already is weighing on the market.


FarmWeek Page 11 Monday, March 8, 2010

PROFITABILITY Corn Strategy

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

Respect long-term price cycles Amid the early anxieties about planting ag ain this year, it’s important to recognize the implications the long-term price cycles could have on prices. Even though price cycles only indicate the expected timing of coming lows and not the price action leading up to them, the downward pull of those coming lows sug gest a more negative price climate is on the horizon. Short-term price cycles and seasonal influences both imply corn and soybean prices should have an upward bias over the next three to five weeks, maybe even longer. If weather remains cool well into March, and rains keep soils from drying, the emotions connected with potential for another late spring will tend to discourage producers from making sales, especially new-crop sales. However, those same shortter m cycles sug g est just the opposite action should be pur-

Basis charts

sued. Corn prices are slated to have their next 40-week cycle low in mid-June. Wheat prices have a seasonal low coming in early July, with a 40-week cycle about the same time. Both are likely to bottom together. Soybeans don’t have the longer short-term cycle that corn and wheat do, but their next 16- to 18week cycle is due to bottom in early to mid-June. Those June/July lows should exert a downward pull on prices as early as late April, but certainly during May. That would indicate that even if planting doesn’t get off the mark early, the conditions and the planting pace are likely to improve as May unfolds. But it’s those long-term cycle lows, mostly looming at the end of 2010 or the beginning of 2011, that should be of most concern. They tend to imply grain prices will have a downward bias as the latter part of 2010 unfolds. From a marketing perspective, the combination of the early summer short-term lows and those end-of-year long-term lows hint the last good marketing opportunity for old and new crop might come over the next few weeks. The timing of those lows, imply the next good marketing opportunity for grains may not come for another 12 to 15 months. Producers need to plan sales accordingly to minimize sales until prices might recover from those pending long-term cycle lows. Logical downside targets might be the most recent major lows, $2.90 for corn, $7.77 for soybeans, and $4.31 for wheat. Some producers might consider sales of the 2011 crops, too, but we don’t expect prices to remain at low levels for a lengthy period of time. That mitigates the need to price much, if any, of the 2011 crops. 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.

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309-557-2274

Cents per bu.

2009 crop: Corn is tradi n g i n a ch o p p y, s i d e way s direction, but still has a slightly upward bias. If May futures can move above $3.89, it would open the door for a test $3.94-$3.97 resistance. Increase old-crop sales to 60 percent if May rallies to $3.95. We may boost sales even more; check the Cash Strategist Hotline frequently. Basis may not improve much until late April or early May when farmers turn their focus to planting. 2010 crop: December futures hit our target of $4.10 to make a 20 percent new-crop sale. Use strength for catch-up sales. Check the Cash Strategist Hotline daily; we could add to sales at any time, but believe there will be more opportunities later in the month. Fundamentals: Snowcover, wet soils, forecasts for cool, damp weather ahead remind the industry a large new crop is far from secure. Still, lackluster oldcrop exports remain a drag on prices, as does the firm dollar.

Soybean Strategy 2009 crop: As much as anything, the volatile trade in the dollar jerked the soybean market around last week. Still, with cycles having bottomed recently, the short-term trend remains up. Boost sales to 50 percent if May futures reach $9.90. The price or amount could chang e at any time; check the Cash Strategist Hotline frequently. 2 0 1 0 c r o p : L e ave a n order to make a 20 percent sale if November futures reach $9.59. Check the Cash Strategist Hotline occasionally for changes. Fundamentals: The trade wants to talk about the large South American crop, but logistics are keeping it from entering the pipeline as fast as traders would like. We hear the truck line-up at ports is as long as it’s ever been. And the line up of boats waiting to load is growing, too. Typically, the wait to load boats diverts some business

b a c k t o t h e U. S. E x p e c t export shipments to remain relatively large into April.

Wheat Strategy 2009 crop: Wheat action has been choppy as it struggles to find direction. The shortterm trend remains negative with prices slipping below the 2 0 - d a y m o v i n g a v e r a g e s. Downside support lies near $4.92 on Chicago May futures. Make a 20 percent sale if that contract hits $5.26, wrapping up old-crop sales. 2010 crop: Use a rally to

$5.40 on Chicago July futures to make an initial 25 percent sale. Check Cash Strategist Hotline daily as this target could be adjusted at any time. Fundamentals: The combination of high prices and strong competition continue to hurt U.S. soft red winter wheat exports, currently at the slowest pace in four years. The latest weekly expor t sales, 104,100 metric tons (3.8 million bushels), were less than expected, enhancing the negative export perceptions.


FarmWeek Page 12 Monday, March 8, 2010

PERSPECTIVES

Why Fair Map Amendment? By now, many of you have heard that following the 2010 census, the State of Illinois is required by law to redraw its legislative and congressional voting districts. And I’m sure you’ve heard about one citizen initiative that has been picking up steam lately: the Illinois Fair Map Amendment (IFMA). In a nutshell, the IFMA would be put on the ballot in November as a constitutional amendment on which Illinois voters could decide. IFMA, launched Dec. 3, 2009, would put drawing districts in the hands of an independent body and take that power away from legislators. In other words — peoTERRY ple trying to stay in office would POPE no longer be able to draw the voting maps and essentially pick their voters. The coalition backing IFMA has set out to get 500,000 petition signatures by April 1 in order for the measure to be put before voters in November. Illinois Farm Bureau decided some time ago to partner with the Illinois Chamber of Commerce and the Illinois League of Women Voters to back IFMA. Why? Because IFMA met the criteria set forth in IFB’s 2010 policy resolutions. The specific resolution reads in part, “We will support a restructuring of the Illinois legislative redistricting process that will be conducted by an unbiased third party, (and) will not be based on political affiliation and prior election results.” IFMA encompasses all of those requirements, as well as many more level-headed guidelines that would de-politicize the redistricting process as much as possible, and that’s why IFB became a partner. But a funny thing happened on the way to collecting petition signatures. Somehow, IFMA became a partisan “thing” as it started to pick up media attention and endorsements from newspapers around the state.

Sure, the amendment has the backing of several state legislative leaders and members. A couple of them have even copied the IFMA and introduced IFMA language in their own legislative proposals. But all that was after the IFMA coalition laid the groundwork of a non-partisan, common sense approach. As the old adage goes, “Imitation is the best form of flattery.“ Naturally, because IFMA suddenly became a partisan “thing,” and that “thing” started to get attention, those who don’t want change had to have a “thing,” too. They “previewed” their plan on Feb. 25 — nearly three months after IFMA kicked off. That plan still includes the legislature having the first crack at drawing its own voting districts. Why? According to Senate Redistricting Committee Chair Kwame Raoul (D-Chicago), the IFMA won’t work, because, in his words, “Anybody who debates this issue of redistricting that starts out by telling you that we’re going to somehow depoliticze the redistricting process, is telling a lie.” Senator Raoul also said, “If I were to sit up here and tell you that my hope at the end of all this is not that the Democrats have the majority, that would be disingenuous.” That’s the kind of boldfaced attitude that voters in this state have grown weary of: “This is Illinois politics, this is how we do it, and you just have to like it.” Well, it’s not. Not anymore. That’s why IFB chose to get behind the Fair Map Amendment, and that’s why we’re sticking with it now. We frankly don’t care from which side of the aisle an idea originates — if it’s good for farmers, if it’s good for Illinoisans, we‘ll get behind it! We encourage our members and all Illinois voters to support the Fair Map Amendment. Terry Pope, an Illinois Farm Bureau director from Burnside, chaired the Illinois Farm Bureau Legislative Redistricting Working Group.

Time for taking action on state budget problems The Saline County Farm Bureau Board of Directors has discussed the concern over the state’s deficits and budget and sent the following letter to state legislators in the district: We are concerned that a capital bill and other spending bills have been passed, yet we are in a deficit. We have a concern: If we (perLOWELL TISON JR. sonally) do not pay our debts, our debts are “called-in” and we are forced to pay them. How can government “get away” without paying its bills? It seems nothing is being done at the state level of government to find a way to balance the budget plus chip away at the deficit. This is a concern

for all residents of Illinois. We need to do away with partisanship and begin to do what is right for the state and citizens of this state. Bipartisanship in our government is at an all-time low. When one side wins and the other side loses — whichever side it is — citizens lose. This is affecting people that we know as individuals, those who are in the education profession, those who work at nursing homes and hospitals, and those who work in the quasi-public/private social service sector agencies with disabled citizens of this state. Cuts are being made in school system budgets that will affect the education of our future leaders. Something must be accomplished to address the deficit and control spending. We realize we need to increase revenues. As farmers/businessmen, we

realize cuts can only go so far before revenue needs to be increased. It’s time for legislators to “get off the bench” and start addressing these issues. We strongly urge you to look at decreasing wasteful spending first and foremost. We know some items will have to be drastically reduced, but we as citizens, need to realize this and understand some goods/services will have to be dropped until we get our spending and deficits under control. In conclusion, we urge legislators to make real efforts in cutting wasteful spending, prioritizing spending, paying the bills, cutting deficits, and increasing revenue. Lowell Tison is president of the Saline County Farm Bureau. His email address is tisons@shawneelink.net.

Time stands still in honey yard, but not in the state legislature As a slow, methodical dance unfolds between the young apiarist and her hives, a drop of sweat slowly rolls down the back of her neck. Even at 40 degrees Fahrenheit in February, Astrid Sabo knows that the actions she takes now can make or break this colony of 50,000 bees. The husbandry that she applies will provide liquid nectar in a few month’s time — a sweetener cherished throughout thousands of years by the human race. At age 9, Astrid has been a beekeeper for more than half of her life. She knows the careful precision she applies is appreciated by her family who enjoys the benefits of Sen. Dave Luechtefeld (R-Okawville) reher labor. cently met with young beekeeper Astrid She knows that Sabo, right, and her brother, Cianan. farmers’ crops, backyard gardeners’ vegetables, and commercial fruit orchards depend, in large part, on honey bees’ pollination. Being exposed to the environmental benefits and declining population of the little winged insects, she has become a steward of the land in her own right. Recently, she found herself in Springfield, hours from her home and hives with her father, Mike, and her younger brother, Cianan, in the Capitol SHARON SABO Rotunda where legislative matters hum. Beside her stood Sen. Dave guest columnist Luechtefeld, a legislator who supports her effort to continue what she loves and has dedicated many hours to the task. They were about to walk into the Senate Agricultural Committee for a hearing on SB 2959. On Wednesday, she returned to the Capitol for a House Agriculture and Conservation Committee hearing. Astrid dreams of selling at the local farmers’ market to support her hives. However, current regulation prohibits that opportunity unless — as the Illinois Department of Public Health (IDPH) suggested during an after-the-committee meeting — she rents a commercial kitchen in which to package her honey. The logistics of transporting such a delicate agricultural product must not be known to the IDPH or the fact that bees are tenacious in guarding the comb from which the honey is removed and cannot be coaxed to stay behind while the honey travels to its final point. In a time when Illinois consumers are looking for fresh, locally produced products, the question must be poised as to why such barriers are created between producers and consumers. How many times have individuals looked for a local product on the store shelves or farmers’ markets only to find imported products crowding out the items that could support the local economy? If we want to keep the opportunity for the other Astrids in Illinois and provide a future for our agricultural industry, our farmers’ markets, and our toast with a touch of nature’s bounty — it is time to make requests of our representatives. Three bills (SB 2959, HB 6132, and HB 5755) pertaining to regulatory processing of honey have advanced to the chamber floor. They have statewide sponsorship and bipartisan support. I encourage each Illinois citizen who enjoys honey and the affiliated items that can be produced with the byproducts, such as candles, soap, and wax, to support these three bills by contacting their state senator and representatives. Sharon Sabo is a Monroe County Farm Bureau member. Her husband, Mike, chairs the Illinois State Beekeepers Association Legislative Committee. The Sabos have kept bees for about nine years. Their e-mail address is muttipie@htc.net. Illinois Farm Bureau supports the legislation.


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