FarmWeek December 7, 2009

BOTH DISAPPOINTMENT and optimism were expressed when the Environmental Protection Agency last week postponed a decision on use of E15 blends. ............4

HUNTERS IN ILLINOIS shot fewer deer during the first three days of the firearm deer season this year than during the same period last year. ..............................5

THE HUMANE SOCIETY of the United States has added religion to its animal welfare activist debate and likely will intensify its efforts in the future. .............................................6

Monday, December 7, 2009

Two sections Volume 37, No. 48

Hopes for Senate higher

House extends the current estate tax provisions

BY MARTIN ROSS FarmWeek

U.S. House proposals ultimately could bring more producers under the thrall of the

federal “death tax,” a Central Illinois congressman warns.

By a tight 225-200 vote, the House Thursday approved “permanent” extension of the

federal estate tax at a 45 percent rate on all assets inherited above $3.5 million per individual or $7 million per couple.

The tax is set to phase out

FARM SHOW ATTENDEES

Allen Berry, left, a farmer from Nauvoo who tests farming equipment developed by Marion Calmer, Alpha, and helps Calmer by going to farm shows to demonstrate the equipment, discusses the Calmer Trash Reduction Kit with two visitors at the Greater Peoria Farm Show last week. Learning about the apparatus were Adams County farmers Bill Beckman, center, Plainville, and Bob Mitchell, Payson.

The Calmer corn head attachments are designed to reduce trash intake at the head, speed harvest, and make the cornstalks decompose more quickly. Beckman said he had 100 acres of corn yet to harvest; Mitchell had 80 acres of soybeans. They both reported good yields. (Photo by Ken Kashian)

at the end of the year, but because of a congressional loophole, it could be reinstated in 2011 with a $1 million individual exemption. Congressional action is needed to prevent that.

With outright repeal an unlikely prospect, Illinois Farm Bureau is supporting proposals to boost the individual estate tax exemption to at least $5 million, adjusted annually to track with the rate of inflation.

The newly approved House bill includes no inflationary factor, and, according to Peoria Republican Rep. Aaron Schock, it gradually would hit more and more families, farmers, and businesses, much as has the federal alternative minimum tax (AMT).

The AMT was created in 1969 to target high-income households that were eligible for so many tax benefits that they paid little or no income tax, but the tax was not indexed to inflation and a growing number of middleincome taxpayers now are subject to AMT treatment.

By extending current estate tax exemptions without allowing for inflation, “we are simply ensuring it’s going to have

a negative impact on families, farmers, and small businesses in the near future,” Schock warned.

Within 10 years, the Houseapproved measure “assures the average farm in the 18th (Congressional) District of Illinois will be burdened with the death tax,” he said.

“The value of assets continues to go up in Illinois —

FarmWeekNow.com For additional information on the estate tax issue, go to FarmWeekNow.com.

the land values have leveled off a bit, but there’s potential they’ll go up in the future, maybe even above the rate of inflation, as they have in recent years,” IFB Director of National Legislation Adam Nielsen advised.

“I think a lot of people see this for what it is — you’re taxing someone when they die.

Death should not be a taxable event. Some people see this as an exclusively ‘rich person’s’ issue, but we know that it isn’t.”

Nielsen was “optimistic” See House, page 2

Fertilizer study challenges current rate recommendations Periodicals: Time Valued

BY KAY SHIPMAN FarmWeek

Corn growers and their crop advisers may be surprised by the recommendations that surfaced from a fertilizer study

by Fred Below, University of Illinois crop scientist.

His four-year, on-farm study of 78 sites in Illinois and six other Midwestern states puts a new spin on conventional — and university — nitrogen fertilizer application rate recommendations.

Below discussed implications of his study results during the U of I’s new Ag Masters Conference last

week in Urbana.

One of the biggest changes may be the amount of fertilizer that farmers need to apply.

Only two of the 78 sites needed the traditionally recommended 1.2 pounds of nitrogen per anticipated bushel of yield to achieve optimum yields, Below reported.

“The traditional 1.2 recommendation was devised in the 1970s when the requirement was 1.2 (pounds for optimum yields), but it stayed the same over the years while the (hybrid) genetics improved,” Below explained.

“If (environmental) regula-

FarmWeek on the web: FarmWeekNow.com

tions are coming, and you’re using a (1.2-pound) system with this kind of error, it’s unacceptable,” he added.

Nitrogen recommendations were accurate only 33 percent of the time based on a more recent nitrogen recommendation method known as the “corn N rate calculator,” which considers fertilizer prices along with other factors.

Below noted the calculator either over- or underestimated optimum nitrogen levels.

The crop scientist predicted American farmers and the U.S. corn industry will move toward a “delta yield recom-

mendation” currently being used in Canada.

That formula bases nitrogen recommendations on the difference between the yield an area would produce without any fertilizer and the optimum yield.

“But you need to know what the check-plot (unfertilized) yield and the optimum yields are,” Below acknowledged.

Even if farmers don’t have such knowledge about unfertilized yields, they need to adjust their ideas about the See Fertilizer, page 3

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

FarmWeek Page 2 Monday, December 7, 2009

Quick Takes ONE FOR THE RECORDS — A Southern Illinois bow hunter may take top honors — if not for bagging a record buck, then certainly for the best how-itdidn’t-get-away story.

The arrow of Joe Graber, an Edwardsville construction worker, struck the ear of a 25-point buck that he had observed over the past four years, according to the Associated Press.

Graber’s shot startled the big deer. It flipped into the air, slid down a bank, fell off a 20-foot cliff, and drowned. The animal was retrieved. Official measurements of the deer’s rack range between 17 and 18 feet.

SOY CANCER BENEFITS — Two new University of Illinois studies report lunasin, a soy peptide often discarded by soybean processors, may fight leukemia and block inflammation associated with diabetes, heart disease, or stroke.

“We confirmed lunasin’s bioavailability in the human body by doing a third study in which men consumed 50 grams of soy protein — one soy milk shake and a serving of soy chili daily — for five days,” added U of I food science professor Elvira de Mejia. “Significant levels of the peptide in the participants’ blood give us confidence that lunasin-rich soy foods can be important in providing these health benefits,” In the cancer study, de Mejia’s group identified a sequence of amino acids that triggers the death of leukemia cells. They also showed lunasin blocked or reduced activation of NF-kappa-B, a link in the chain of biochemical events that cause inflammation.

Though inflammation is linked with chronic health problems such as heart disease and rheumatoid arthritis, de Mejia said it also plays a role in cancer development.

EDUCATION COUNCIL NAMED — Gov. Pat Quinn has appointed 25 individuals to an advisory panel that will make recommendations about strengthening the state’s education system.

The P-20 Council, which will deal with the education of students in pre-school through graduate school, will play a role in Illinois’ quest to secure federal funds.

The U.S. Department of Education plans to issue $4.35 billion in competitive grants for innovative education approaches. Illinois could receive about $400 million of those stimulus funds.

The 25 individuals appointed to the council include business leaders; teachers; parents; civic group leaders; and university, community college, and school officials. There are four legislators and six ex-officio members representing state agencies. Chicago City Clerk Miguel del Valle will chair the council.

EMERGING ISSUES Compliance concerns

NRCS: Take steps to demonstrate, document your wet field problems

BY KAY SHIPMAN FarmWeek

Farmers who are worried about how the late harvest and fieldwork might impact their farm conservation plans may take steps to relieve their anxiety, according to the Natural Resources Conservation Service (NRCS) assistant state conservationist for programs.

NRCS knows farmers must follow their USDA compliance plan and get into their fields, but the late harvest and wet field conditions have complicated the matter, said NRCS’s Ivan Dozier. Concerned farmers have contacted the state NRCS staff and Farm Service Agency.

“We know they (farmers) don’t want to get out there when it’s wet. They have enough anxiety getting their crop out, and we want to relieve some of that anxiety,” Dozier said.

NRCS has no “blanket waiver” that would apply to the current situation, according to Dozier. “It’s a case-by-case basis,” he added.

State Conservationist Bill Gradle offered some suggestions that farmers could take to help avoid potential problems.

“We know ruts and compaction are, or will be, a real problem out there,” Gradle said.

Although some conservation compliance plans may not allow tillage, that may be the only option some farmers have to re-establish cer-

Illinois estate tax set to expire at end of 2009 The Illinois estate tax will expire at the end of 2009 if state or federal lawmakers don’t take any action, according to a spokesman for Illinois Attorney General Lisa Madigan, who administers the state estate tax in Illinois.

“As it now stands, both the federal and the Illinois estate taxes are set to expire at the end of the year,” said Scott Mulford, a spokesman for the attorney general.

“If nothing is done in Congress or the General Assembly to address this, both estate taxes will reappear in January

House (ISSN0197-6680) Vol. 37 No. 48

December 7, 2009

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

FarmWeek is produced by the Illinois Farm Bureau.

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

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

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office.

POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2009 Illinois Agricultural Association

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

Richard Verdery Classified sales coordinator

Nan Fannin Director of News and Communications

Dennis Vercler Advertising Sales Representatives

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

tain fields for next spring, he noted.

To stay in compliance on highly erodible land, farmers may take the following steps: • Take photographs to document poor field conditions and keep the photos as evidence in case of a random compliance review.

• Don’t till an entire field to take care of a few bad spots. Use tillage only in problem areas and do just enough to till in ruts or break up compacted soils.

• If critical areas or problems or special circumstances call for unique or extreme measures, photograph them and advise the local NRCS staff about your situation. They can offer advice and will be familiar with the circumstances if there is a spot compliance review later.

Dozier reminded farmers that NRCS takes a long-term view on conservation history.

NRCS will consider the long-term conservation average on a field if a compliance plan calls for 50 percent residue, but a farmer who has followed his plan in the past can’t achieve that this year, Dozier explained.

“No one will be called out of compliance without a field check based on the long-term average,” Dozier said. “If they’ve follow their plans, one year will not throw them out of compliance.”

Continued from page 1 the Senate would support a $5 million exemption indexed to inflation. Senate Majority Whip Dick Durbin, a Springfield Democrat, has told IFB he favors a higher exemption level and indexing.

The alternative to estate tax extension or reform is elimination of estate tax revenues in 2010 — a prospect that chills many congressional Democrats.

“Whether it’s a one-year fix or permanent estate tax reform, they’re going to have to do something,” Nielsen said. “Now the clock is ticking.”

2011, according to legislation signed by President Bush,” Mulford said.

The previously passed federal legislation would reinstate the estate tax at 2001 levels.

The U.S. House last week approved an extension of the estate tax at the current level, but the Senate has yet to act on the matter.

Illinois would tax an estate if the value totals $1 million or more. The estate tax rate would be calculated using the federal tax rate scale.

In 2001, the federal Economic Growth and Tax Relief

law took effect and gradually eliminated a state estate tax credit, replacing the federal credit with a much-less-valuable deduction.

Then in 2003, the Illinois General Assembly “decoupled” the Illinois estate tax from the federal estate tax credit and put in place a graduated tax scale on the state estate tax.

However, the state “decoupling” action ends Dec. 31, 2009, meaning the state again will follow the federal estate tax system after that date. — Kay Shipman

FarmWeek Page 3 Monday, December 7, 2009

ENVIRONMENT

USDA analysis missing forest for the trees?

BY MARTIN ROSS FarmWeek

New USDA analysis of congressional cap-and-trade proposals ignores a potentially crucial side-effect for producers and consumers — reducing food supplies and hiking costs, according to an Illinois Farm Bureau spokesman.

USDA Chief Economist Joe Glauber acknowledged House-proposed climate legislation would increase producer costs, but argued the impact would be gradual over several decades.

During a House Ag subcommittee hearing last week, Glauber presented USDA’s latest analysis, which concludes energy prices would rise modestly for all of agriculture from 2012 to 2018.

The new USDA study projects average annual changes in fuel costs to rise between an additional 2.6 percent to 5.3 percent from 2012 to 2018 under proposed new greenhouse emissions caps on utilities, refiners, and manufacturers.

Fertilizer costs would increase by an added 0.3 of a percent to 1.7 percent each year, according to the USDA analysis.

Meanwhile, Ag Secretary

Tom Vilsack claimed benefits from climate legislation — i.e. producer ability to generate emissions credits for sale to regulated sectors — would outweigh cost increases.

While some farmers and regions would not see as many gains, those producers would receive some government assistance, he said.

The House-passed climate change bill would have negligible impact on food prices, pushing them up 1 percent to 2 percent by 2050, according to Vilsack.

USDA’s analysis focused only on on-farm production, and not on energy costs along the entire food supply chain.

Further, IFB National

Legislative Director Adam Nielsen noted continued indications that forest development would be the overwhelming winner in a carbon credit market, potentially displacing farmland as emissions offset opportunities increase.

That, in turn, could reduce food supplies and hike consumer costs. International

food prices could rise as well as developing countries emphasize reforestation under House proposals to subsidize global carbon capture.

“Most of the benefit to farmers farther down the road is in planting trees,” Nielsen said. “Is that the kind of agriculture we want?”

Nitrogen role in emissions should be on ag’s radar screen

BY KAY SHIPMAN FarmWeek

Farmers and others in the ag industry need to understand nitrogen’s role in greenhouse gas emissions so the climate debate keeps agriculture’s contributions in the proper perspective, a national ag environmental expert told FarmWeek.

“We have to make the ag community aware of what the facts are to put nitrous oxide (a greenhouse gas from nitrogen) in perspective. We (ag) take all nitrogen losses seriously, but we shouldn’t do more than our fair share,” said Cliff Snyder, nitrogen program director with the International Plant Nutrition Institute, Conway, Ark. Last week Snyder discussed nitrogen-related problems in the environment at the University of Illinois Ag Masters Con-

ference in Urbana.

Emissions related to nitrogen fertilizer “are not even on farmers’ radar screen, but the public is fixated on greenhouse gases,” Snyder said.

On one hand, agriculture accounts for less than 8 percent of all U.S. greenhouse gas emissions, Snyder noted.

On the other, agriculture emits about two-thirds to threefourths of the United States’ nitrous oxide, a greenhouse gas that is more potent in global warming than carbon dioxide, he added.

He said 67 percent of agricultural nitrous oxide comes from fields and the amount released depends on how fertilizer is managed.

Greenhouse gases aren’t the only environmental issue related to nitrogen fertilizer.

Farmers are more familiar with water quality problems resulting from nitrogen leaching, tile drainage, and runoff.

Farmers need to give more thought to those types of nitrogen losses, according to Snyder, because “it represents an economic loss.”

Snyder encouraged farmers to explore new nitrogen products and fertilizer technology, adding that no single panacea exists. One example of a new product is polymer-coated urea, which is a slow-release fertilizer.

The wet growing seasons of 2008 and 2009 should provide farmers with motivation. “If we have weather like we’ve had the last two years, we need to think of better ways to protect the nitrogen we apply,” Snyder said.

Improved timing of fertilizer applications is another way to

reduce fertilizer losses. For example, a farmer may consider hiring a custom applicator to better manage the timing of his fertilizer applications, Snyder offered.

Snyder focused on the four Rs of nutrient stewardship. He explained those stand for selecting the right source, the right rate, the right application time, and the right place.

Crop advisers and researchers can help reduce nitrogen losses by improving crop nitrogen efficiency, according to Snyder.

Corn and other cereal crops recover about 45 percent of the applied nitrogen fertilizer.

Snyder estimated improved management and new technology could raise the efficiency level to the 60- to 70-percent range.

U of I experts explore 2009 crop challenges, 2010 outlook University of Illinois agriculture production experts offered their takes on the 2009 growing season and thoughts for next year during the first Ag Masters Conference last week in Urbana.

The experts will discuss their research and projections in more depth at upcoming winter meetings, including the Corn and Soy Classics in January.

CORN CONCERNS: “We always warn people after an unusual year not to overreact,” said Emerson Nafziger, U of I Extension agronomist. He warned farmers, especially those in Northern Illinois, not to jump to conclusions about 112-day hybrids based on this year’s problems.

At winter meetings, U of I researchers will report on test weight comparisons of high-moisture samples from different hybrids. Nafziger cautioned farmers not to make bad soil

conditions worse: “Almost no soil in the state is fit for tilling and that will be true for the next six months.”

SOYBEAN ISSUES: Vince Davis, U of I Extension agronomist, reminded growers that yields might have taken a bigger hit if the wet, cool summer had been hot and dry. With only half the state’s soybean crop planted by June 6, “data tells us that we lost yield potential,” Davis said. Molds took a toll on yields, but the outcome might have been worse with different weather this summer, he noted.

WEED PROBLEMS: Weed problems started early in 2009 and foreshadow potential problems for next year, said Aaron Hager, U of I Extension weed specialist. Herbicide-resistant marestail is becoming more widespread, especially in Southern Illinois.

“I don’t feel the glyphosate-resistance problem is going to lessen and

will continue to be confronted in the foreseeable future,” Hager said. He expressed concerns about possible problems in 2010 with volunteer corn, especially that from glyphosate-resistant hybrids.

INSECT PESTS: Historically low numbers of corn borer were reported in 2009, said Mike Gray, U of I integrated pest management specialist. In 23 counties, no evidence of corn borers was found. Researchers also found low levels of western corn rootworm populations, he noted.

Growers may not have to worry about soybean aphid problems next year despite large infestations this last fall. Many aphids died from fungal diseases and didn’t lay eggs in buckthorn, their overwinter host plants, Gray said.

CROP DISEASES: Molds were a major problem, even striking areas that typically don’t encounter such diseases,

said Carl Bradley, U of I plant pathologist. Yield losses varied, but Bradley reported hearing of 10 percent soybean yield losses from white mold in Northern Illinois.

However, soybean growers escaped “a close call” with soybean rust.

The rust was found in October, and some late-planted beans in Southern Illinois were still green, but no rustrelated yield losses were reported. “We were two to three weeks away from suffering (rust-related) yield losses in the state,” Bradley said.

SOIL WOES: Farmers will have to suffer soil compaction next year, according to Fabian Fernandez, U of I soil fertility specialist.

“Deep tillage is one way to deal with it, but soils will be wet for the next six months. We have to look to next fall to deal with tillage,” Fernandez said. — Kay Shipman

Fertilizer Continued from page 1 nitrogen needs of modern hybrids, according to Below.

His study of spring-applied fertilizer showed the average nitrogen rate requirement for modern hybrids is 0.85 of a pound of nitrogen per bushel of yield.

If the same nitrogen rate is applied in the fall, the average yield would be expected to

decrease 10 bushels per acre, Below added.

“If you apply nitrogen in the fall when there is a chance of greater loss (over the winter), you’re taking a risk,” Below said. “Urea as a fall (nitrogen) source is evil, evil, evil because it will be lost.”

Below also discovered a 25bushel-per-acre yield penalty in continuous corn compared to

corn produced in a corn-soybean rotation. That penalty stayed constant among the 22 hybrids studied by Below.

“The yield penalty for continuous corn gets worse over time. It’s due to the (corn) residue,” he said.

Over time, farmers haven’t attributed yield losses to growing continuous corn because improved genetics have boost-

ed yields “and sometimes they get lucky with the weather,” Below said.

Farmers and their advisers also need to reconsider applying higher nitrogen rates on more productive field areas and lower rates on less productive spots, according to Below.

His study showed greater yield response to increased nitrogen rates on less produc-

tive areas than resulted from applying more nitrogen on the more productive areas.

Yields on productive areas remained fairly constant even with more nitrogen.

“It’s the low-end yields that vary more than the top yields,” Below said. “The lowest (productive) areas of the field have the greatest (yield) variability and response to nitrogen.”

FarmWeek Page 4 Monday, December 7, 2009

BIOENERGY EPA delay disappointing, but…

Summer approval for E15 blends anticipated

BY MARTIN ROSS FarmWeek

While growers were disappointed by the federal government’s postponement of a decision last week on use of 15 percent ethanol (E15), a cutting-edge cellulosic ethanol producer sees “a strong signal we’re prepared to move to E15” by next summer.

The U.S. Environmental Protection Agency (EPA) announced it was postponing a decision to allow blending up to 15 percent ethanol in gasoline supplies nationwide.

In March, the ethanol coalition Growth Energy asked EPA to sign off on blends above the current market-inhibiting 10 percent ethanol “blend wall.”

EPA’s announcement was “not surprising,” according to Illinois Corn Growers Association President Rob Elliott, who predicted “further research would be needed to fully support a move to a 15 percent blend.”

He nonetheless was disappointed EPA did approve interim use of 12 to 13 percent blends “based on the science currently available.”

“We’re disappointed, but we’re also optimistic EPA is doing its due diligence,” Steve Ruh, former National Corn Growers Association Ethanol Committee chair, told FarmWeek.

Growth Energy co-chairman and former U.S. Gen. Wesley Clark said he was

FarmWeekNow.com For more reaction and interviews about the E15 decision, go to FarmWeekNow.com.

encouraged by positive E15 emissions and engine durability results in U.S. Department of Energy (DOE) studies and suggested EPA could announce approval for higher blends by June if remaining tests yield similar findings.

Growth Energy CEO Tom Buis argued his organization’s waiver request has expedited federal testing, helping ensure a decision “in a few months, not in a few years.”

Moving to E15 could create 7 billion gallons of new

ethanol demand and “tremendous new demand for ag products,” said Jeff Broin, whose Iowa-based Poet is on the cutting edge of cellulosic ethanol production using corn cobs.

But “without question, we need to move the blend wall to have the kind of growth this industry needs in the future,” he said.

“The potential for both grain and cellulosic ethanol to grow in the future is enormous,” Broin told FarmWeek.

“The potential to offset large amounts of imported oil is very large and our ability to compete at today’s price of gasoline with both cellulosic and grain ethanol is very good: We’re a lower-priced product. But we need to move the blend wall.”

Producers are counting on E15 approval to help bring the ethanol industry out of an earnings/investment slump. A resulting slowdown in new production has raised questions about whether the industry can meet a congressionally mandated 36-billion-gallon renewable fuels target by 2022.

Noting “there is cellulose in

literally every state,” Broin sees widespread opportunities to incorporate biomass feedstocks into and improve the carbon footprint of grainbased plants relative to foreign sugar-based ethanol.

At the same time, Poet has reduced cellulosic production

costs from $4.13 a gallon to $2.35 per gallon over the past year.

Clark believes E15 approval will open “a substantial window for investment opportunities in the industry.” There’s a lot of money on the sidelines waiting for E15 to pass,” said Ruh, an Elburn producer.

EPA on the record U.S. Environmental Protection Agency Assistant Administrator Gina McCarthy, in a Nov. 24 letter to Growth Energy, said: “. . . As we have seen in the range of comments from stakeholders, this is a critical issue and also one where there are widely divergent views. A common theme we have heard, however, is that the federal government and other stakeholders are looking to have a successful, longterm introduction of more renewable fuels into the transportation sector.

“As we are evaluating your E15 waiver petition, we want to make sure we have all necessary science to make the right decision. Although all of the studies have not been completed, our engineering assessment to date indicates that the robust fuel, engine, and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15. ‘‘However, we continue to evaluate the question of component durability when E15 is used over many thousands of miles and there is an ongoing study being conducted by DOE (the U.S. Department of Energy) that will provide critical data on this issue. . . .’’

Biodiesel RFS delay leaving industry in limbo?

A delay in U.S. Environmental Protection Agency (EPA) renewable fuels rules has “kind of left the industry in limbo,” according to Darryl Brinkmann, a Carlyle soybean producer on the Illinois Farm Bureau board.

In a late November letter, the National Biodiesel Board (NBB) pushed EPA Administrator Lisa Jackson to implement mandatory 2009-2010 “biomass-based diesel” fuel

use requirements under the federal renewable fuels standard (RFS) by Jan. 1.

The RFS, as revised in 2007, requires use of 500 million gallons of biomass-based diesel in 2009, 650 million gallons in 2010, 800 million gallons in 2011, and 1 billion gallons in 2012.

Biodiesel from soy or other sources is the only domestic commercially produced fuel that currently meets federal

criteria for biomass-based diesel.

According to the NBB, EPA can implement the biomass-based diesel program by issuing an appropriate renewable “volume obligation” specifically for biodiesel.

NBB Vice President of Federal Affairs Manning Feraci noted the agency is rapidly approaching the end of 2009, “a year beyond the

statutory deadline for RFS implementation.”

“So far, all we’ve seen are words, and not any tangible movement in that direction,” NBB Washington spokesman Michael Frohlich told FarmWeek.

The biodiesel industry has made “vital business decisions” based on the RFS targets, and the nation’s ability to meet nearterm renewable goals “will be undermined if the EPA does

Measure seeks renewal, redirection of credit Biodiesel producers awaiting long-term fuel demand targets (see accompanying story) are simultaneously pushing long-range renewal — and redirection — of tax credits seen as crucial to hitting those targets.

National Biodiesel Board (NBB) member Darryl Brinkmann urges congressional approval of a proposed five-year extension of the $1-per-gallon federal biodiesel blenders tax credit sponsored by U.S. Rep. John Shimkus, a Collinsville Republican.

Shimkus also would shift the credit, now extended to fuel suppliers, to biofuels producers themselves.

The incentive, set to expire Dec. 31, has been credited with spurring rapid industry growth. A five-year extension would enable long-term industry planning and investment, while the move to a producer credit would “work more efficiently” in boosting capacity, Brinkmann said.

“It’s also going to eliminate potential abuses of the tax credit and improve tax compliance,” NBB Washington spokesman Michael Frohlich told FarmWeek. “It really gets to the heart of making sure the credit is being used for production of the fuel inside the U.S., to stimulate the U.S. economy, to grow U.S. jobs.”

For example, while fostering new production, the current blenders credit also has attracted petroleum interests seeking to cash in on “miniscule blending” of oils that contributes little to

the overall biodiesel supply.

Congress earlier addressed “splash-and-dash” practices under which foreign sugar- or palm oil-based biodiesel was imported, blended with a small amount of diesel fuel to capture the credit, then shipped to Europe or other markets for sale below market rates.

The credit initially granted $1 per gallon to suppliers who blended “virgin” soy biodiesel and a 50-cent break for those who used biodiesel produced from waste grease or other sources. Amid growing diversification of crop-based, animal, and recycled feedstocks, the $1 credit was extended across the board to all feedstocks.

The biodiesel tax credit was enacted in 2004 when total U.S. production was estimated at 25 million gallons. By 2008, production had reached 690 million gallons — “It’s clear the tax credit’s working,” Frohlich maintained.

But in a currently “difficult economic environment,” biofuels startups and investors already struggling to obtain capital “aren’t going to move on year-to-year extensions,” he warned.

Frohlich said continued tax benefits are necessary for development of new alternative feedstocks such as algae, cottonseed oil, or pennycress, which are seen as integral both to bringing down biodiesel prices and meeting federally mandated demand.

— Martin Ross

not take immediate steps to implement the biomass-based diesel program,” Feraci warned.

Brinkmann, who recently was re-elected to the NBB governing board, sees reason for “a little more optimism in the industry,” which recently experienced a slump in investment and growth. But Feraci warns uncertainty about RFS-related demand could “prolong the severe economic hardship facing the domestic biodiesel industry.”

“We’re fortunate enough to have a carve-out under the RFS for biodiesel, but, unfortunately, EPA hasn’t gotten the rules and regulations out,” Brinkmann said. “I suppose they’re busy in the (administration’s) transition and all that, but a lot of people are counting on this happening.”

He stressed the need to solidify domestic demand particularly given loss of potential European markets because of European Union duties on U.S. biodiesel. The European Biodiesel Board instigated temporary “anti-dumping” and “anti-subsidy” tariffs against U.S.-produced biodiesel, and “that’s hurt a lot of our members,” Brinkmann said.

The European market “was to be a temporary market until the RFS was enacted,” Frohlich reported. — Martin Ross

FarmWeek Page 5 Monday, December 7, 2009

GOVERNMENT

Initiative seeks new way to draw legislative map Signatures needed to put on ballot

BY KAY SHIPMAN FarmWeek

A citizens’ initiative is proposing to amend the Illinois Constitution to allow a change to be made in the method used to draw state legislative districts, supporters announced last week in Springfield.

Known as the Illinois Fair Map Amendment, the proposal would create a nine-member bipartisan commission to draw

‘We fully realize this is David vs.

Goliath.’

— Brad McMillan Illinois Reform Commission member

legislative district boundaries and “put people’s interests ahead of political self interest,” Brad McMillan, a member of the Illinois Reform Commission, said at a Friday news conference.

Initiative supporters, including the League of Women Voters and the Better Government Association, will attempt to gain 500,000 signatures of Illinois registered voters by May 1.

This would allow the pro-

posal to go before voters on the November 2010 ballot, said Jan Czarnik, the league’s executive director.

The proposal would deal with district boundaries for General Assembly members only.

Adding congressional districts to the reform move might draw a legal challenge due to language in the state Constitution, McMillan explained.

During the map-drawing process, commission meetings would be open to the public and the news media, and the public could submit legislative map proposals.

“Everything will be in the light instead of darkness,” McMillan added.

“What great timing for this issue to come up. Illinois Farm Bureau delegates will consider a policy resolution on legislative redistricting this week (at the IFB annual meeting). IFB also has a working group studying the redistricting issue,” said Kevin Semlow, IFB director of state legislation.

Information about the initiative is available online at {www.ilfairmap.com} or by contacting the League of Women Voters, 332 S. Michigan Ave., Suite 1150, Chicago, Ill., 60604. The telephone number is 312-939-5935.

“We fully realize this is David vs. Goliath ... we intend to add stones to our slingshot and be successful,” McMillan said.

Gov. Pat Quinn, center, talks about the importance of nature tourism during a news conference on a farm owned by Pike County Farm Bureau President Terry Rush, far left. Flanking Quinn are Rush and his grandson, Noah Petty, Illinois Department of Natural Resources Director Marc Miller, and state Sen. Deanna Demuzio (D-Carlinville). Quinn and Miller discussed wildlife and recreation issues during a recent farm visit.

(Photo courtesy Pike County Farm Bureau)

Quinn touts benefits of state’s nature tourism Deer hunting and other forms of outdoor recreation are big business in Pike County. That economic bright spot didn’t go unnoticed by Gov. Pat Quinn who recently visited the Pittsfield farm of Pike County Farm President Terry Rush.

“The governor emphasized nature tourism and the opportunities we have in Illinois. It was really refreshing to hear,” said Rush, who also runs a deer and wild turkey outfitting operation.

Quinn and Illinois Department of Natural Resources (IDNR) Director Marc Miller highlighted nature-based tourism during a news conference. Quinn noted hunters provide an estimated $25 million boost to Pike County’s economy.

From Nov. 20 to 22, tens of thousands of hunters statewide participated in the first three

days of the deer firearm season. Hunting, fishing, and other types of outdoor recreation create jobs, Quinn noted.

Illinois has more than 1.1 million hunters and fishermen. Those two sports provide an annual $2.1 billion impact and support more than 22,000 jobs statewide.

While in Pike County, Miller also discussed wildlife issues of interest to agriculture and farmers with Rush and other county Farm Bureau leaders.

Rush said he was encouraged to hear the governor’s and the director’s views on the future for IDNR. The governor made similar comments to conservation enthusiasts at the recent Conservation Congress, said Rush, who participated in the congress. — Kay Shipman

Fewer deer harvested in first firearm hunting season Standing corn and weather blamed for the decrease The Illinois Department of Natural Resources (IDNR) reported hunters in Illinois shot about 66,126 deer during the first three days of the firearm deer season Nov. 2022. That compares to 71,894 deer during the same period last year.

Standing corn was a significant factor affecting hunters’ success rate, according to Paul Shelton, IDNR forest wildlife program manager.

“The wet weather this fall has delayed corn harvest in many locations, and that makes it tougher for hunters to find

Quinn signs school bus safety law Gov. Pat Quinn recently signed legislation to improve student safety on school buses.

The law took immediate effect.

Now under the state Vehicle Code, all school bus drivers must check their buses to ensure no passengers were left on the bus at the end of the route.

The new law also requires all school buses to be equipped with emergency two-way radios.

Failure to conduct a post-trip inspection can result in the suspension of the bus driver’s permit by the Illinois Secretary of State.

deer,” Shelton said.

The firearm season resumed Dec. 3-6; preliminary totals were not available.

IDNR issued more than 360,000 firearm deer hunting permits for the 2009 season.

Pike County led the state with 2,012 deer harvested during the first three days of the season. It was followed by Fulton County with 1,725; Adams, 1,614; Jefferson, 1,606; and Randolph, 1,576.

During the 2008 seven-day firearm season, hunters shot 106,018 deer.

Sixty percent of the deer taken during the first part of the firearm season were bucks, compared with 59 percent bucks taken during the same period in 2008.

Illinois hunters have other deer seasons remaining. The muzzleloader-only deer season is Friday through Sunday.

The expanded, split late-

winter antlerless-only firearm and the special chronic wasting disease deer seasons — both in select counties only — are

Dec. 31-Jan. 3 and Jan. 15-17.

The 2009-2010 archery deer season continues through Jan. 17.

EPA to renew ag advisory committee The U.S. Environmental Protection Agency (EPA) will renew the charter of its independent agricultural advisory group, the Farm, Ranch, and Rural Communities Committee.

“EPA is dedicated to an open and constructive working relationship with the agriculture community,” said Lawrence Elworth, ag counselor to the administrator.

The advisory committee provides an opportunity to improve the understanding of environmental and agricultural issues and rural communities, he added.

A Federal Register notice was published Nov. 6 seeking applications for new committee members. EPA established the

ag advisory group in February 2008 as a policy-oriented committee to provide advice, information, and recommendations on a range of environmental issues of primary importance to agriculture and rural communities.

The committee meets twice yearly and has about 25 members representing academia, industry (e.g., farm groups and allied industries), non-governmental organizations, and state, local, and tribal governments.

Once renewed, the committee’s charter will be effective for two years.

More information is available at {www.epa.gov/ocem/ frrcc}.

FarmWeek Page 6 Monday, December 7, 2009

LIVESTOCK

Livestock producers see some light at end of tunnel

BY DANIEL GRANT FarmWeek

Beef and pork producers who survived tough economic conditions to this point may have some reasons for optimism in coming months, according to industry leaders at the Illinois Commodity Conference.

Higher futures prices suggest pork producers by next summer could see some of their first profits of the past two-plus years.

Meanwhile, any type of economic improvement in the coming year could spark meat consumption and additional exports of U.S. beef and pork.

“Producers are looking to futures prices next summer and they’re seeing a chance to return to a profit,” said Gary Asay, a Gary Asay Henry County producer who serves on the National Pork Producers Council board and is a past president of the Illinois Pork Producers Association.

“Pork producers are eternal optimists and that has given us some light at the end of the tunnel,” he said.

The U.S. in September also exported more pork than any other month since last April, according to the U.S. Meat Export Federation (USMEF). Trevor Toland Elsewhere, U.S. beef exports remained sluggish overall but demand improved at some locations.

U.S. beef exports to Japan the first three quarters of this year increased 22 percent in volume compared to last year while beef exports to Taiwan jumped 26 percent in Septem-

ber, according to USMEF. “The economy turning around would be the biggest thing (to boost beef sales around the world),” said Trevor Toland, a McDonough County beef producer and president of the Illinois Beef Association. “That can overcome a lot of other problems such as higher corn prices.”

Both livestock leaders expressed concern about the pace of this year’s harvest and the quality of the crop.

Asay said he is aware of some instances in which pigs would not eat moldy corn and other situations in which pigs

overate due to what could have been nutritional deficiencies in damaged corn.

“We have some concerns the corn crop is not coming out (efficiently) and it’s costly (due to additional drying costs),” Toland said. “That could translate to higher feed costs.”

Overall, Toland and Asay believe producers will continue to exit the beef and pork industries in 2010 but the pace may slow down compared to this year.

“Checkoff receipts were down last (fiscal) year,” Toland added. “Hopefully, this fiscal year we can stabilize that.”

Higher milk prices dairy loss quencher?

Chris Hausman, left, IFB District 12 director from Champaign County, discusses animal care issues with Wes Jamison, center, associate professor of communication at Palm Beach Atlantic University, and Harold Guither, right, professor emeritus of ag economics at the University of Illinois, during the Illinois Commodity Conference in Bloomington. Jamison was a keynote speaker at the event. (Photo by Daniel Grant)

Jamison: HSUS takes animal care debate to higher power Farmers and ag leaders no longer can rely simply on scientific and economic evidence to successfully defend current livestock production practices.

The Humane Society of the United States (HSUS) in recent years added religion to the animal welfare debate and likely will intensify the effort with its Faith Outreach program, according to Wes Jamison, associate professor of communications at Palm Beach Atlantic University.

Jamison talked about the animal activist group’s focus on religion and what it could mean to ag supporters during the Illinois Commodity Conference in Bloomington.

“This debate is not about science or economics,” said Jamison, who recently completed a ninemonth research project in which he analyzed why HSUS is so effective in shaping consumer opinions about animal ag.

“They (HSUS leaders) realized something was missing to tie (animal welfare issues) together and they found religion,” he said.

HSUS currently is spending about $1.2 million per year on its Faith Outreach program in an attempt to convert and change people’s minds about animal ag, according to Jamison.

HSUS on its website states the Faith Outreach program “seeks to engage people and institutions of faith with animal protection issues on the

premise that religious values call upon us all to act in a kind and merciful way towards all creatures.”

The HSUS statement seems to be well-intended, but Jamison believes there is a hidden agenda.

“The real target audience is pet owners” who are a key demographic when it comes to state and local elections, Jamison said. HSUS wants to remind pet owners “they should feel guilty about treating one animal like family and another like cuisine.”

HSUS is attempting to frame animal welfare as a religious and moral issue with the understanding that getting consumers to feel guilty can inspire them to take actions that could have negative consequences on livestock production, he said.

Voters in California, for example, last year approved a referendum to ban the use of veal and sow gestation crates.

In the end, “Their strategy (at HSUS) is to legislate you out of production,” Jamison told the farm audience.

Farmers, therefore, must engage in the debate and look for ways to help consumers differentiate companion animals from food animals. Farmers also must empower consumers to feel good about farm products, he said.

“Research shows consumers want to use your (meat-based) products,” he added. “HSUS has the difficult job trying to change their behavior.” — Daniel Grant

Milk prices are expected to inch higher this month and by early next year producers actually could start turning a profit again.

That’s the prediction from Mike Hutjens, University of Illinois Extension dairy specialist, who recently projected Class III milk prices, including premiums, this month could hover around $15 to $16 per hundredweight and then move to the $17- to $18-range after Mike Hutjens the first of the year.

“We’re looking at close to break-even (milk prices), which means we’re at least covering costs,” Hutjens told FarmWeek at the Illinois Commodity Conference.

“Then we should be looking at $17 to $18 milk after the New Year (holiday), which would be a refreshing chance for farmers to catch up” with various debts and expenses.

Class III milk prices in October averaged just $12.82 per hundredweight and Illinois milk producers from last February through November lost $50 to $100 per cow each month, according to Hutjens.

But dairy losses were more severe in the West due in part to higher costs. Hutjens, therefore, believes the Illinois dairy industry is well-positioned for a return to profitability.

“The price of milk is coming up, so hopefully producers can capitalize,” he said.

Hutjens believes Illinois milk producers are in better shape than their counterparts in other states due to low labor costs, good feed resources, bonuses handed out by cooperatives, and lower debt loads due to the fact that most Illinois producers didn’t expand in recent years.

The dairy herd in Illinois has remained steady at about 102,000 animals, he reported.

Elsewhere, about a quarter-million dairy cows were culled from the national herd and milk production as a result is expected to decline by 1 to 1.5 percent. The drop in milk production and higher demand are expected to push milk prices higher in 2010.

HUTJENS RECEIVES AWARD Hutjens was honored at the conference with the 2009 Friend of Agriculture Award.

The award, the highest honor awarded at the annual conference, is given to individuals who have significantly contributed to improving Illinois agriculture.

Hutjens has served as a dairy specialist at the U of I since 1979 and is a well-known dairy nutritionist. He has written columns for various publications and has spoken at conferences in 46 states and 15 countries. — Daniel Grant

FarmWeek Page 7 Monday, December 7, 2009

RISK MANAGEMENT

Insurance, strategic marketing winning combo?

BY MARTIN ROSS FarmWeek

Market analysts are bullish on crop insurance as a tool to help producers more aggressively — and comfortably — lock in profit.

Mark Gold, managing partner with Chicago-based Top Third Ag Marketing, notes many growers emphasize either risk management or strategic marketing, believing “you don’t need to do the marketing” if insurance guarantees are in place or ignoring the marketing security crop coverage can offer.

Gold argued revenue assurance (RA) or crop revenue coverage (CRC) policies normally provide effective profit protection “when you can’t grow the bushels.”

At the same time, Gold said his firm feels “much more comfortable about selling grain ahead of time knowing (clients) have that insurance and that marketable bushels will be there.”

In some cases, RA or CRC coverage enable growers to sell grain as much as a year prior to harvest, said Gold, whose firm does not sell insurance. “Sometimes, the best marketing opportunities come well before farmers put the crop in the ground,” he told FarmWeek at a recent ag bankers conference.

According to Illinois Farm Bureau risk management specialist Doug Yoder, use of insurance-based protections with crop marketing is “as warranted or more warranted in this volatile market environ-

ment we’ve seen the last couple of years than ever before.”

Rising input prices and grain

“We’ve always endorsed coupling of sound risk management policies with being more

‘Sometimes, the best marketing opportunities come well before farmers put the crop in the ground.’

— Mark Gold Top Third Ag Marketing

storage issues have heightened risks involved in post-harvest marketing, he noted.

Despite recent price rallies related to harvest anxiety, longterm trends confirm the general benefits of forward contracting “done the right way,” Yoder said.

aggressive in your forward grain contracting — if the market gives you good opportunities,” he said.

“Well, we’ve certainly seen good opportunities the last couple of years to go out and lock in profitable prices. If you

do that in conjunction with a solid risk management plan, that gives you some backstops and some guarantees in case you do have some production hiccups or problems.”

Without an insurance safety net, growers may feel comfortable forward-contracting only a maximum 10-25 percent of production. Yoder said producers able to lock in recent exceptionally high prices on only 25 of their grain have been “taking a risk on 75 percent, hoping the market stays up or goes even higher after harvest.”

Armed with a 75-85 percent insurance guarantee, a producer could feel justified in marketing closer to 50 or even 75 percent of his grain ahead of harvest, he maintained.

Illinois counties ‘deleted’ from GRIP/GRP policy list USDA has reduced risk options for 2010 for growers in two Illinois counties as part of a sweeping effort to ensure credible coverage and claims and streamline systemwide crop insurance costs.

Last week, USDA’s Risk Management Agency (RMA) announced 1,062 Group Risk Program (GRP)/Group Risk Income Protection (GRIP) county crop program “deletions” for corn, soybeans, grain sorghum, cotton, and peanuts for the 2010 crop year.

Illinois’ Lake County will lose GRP and GRIP coverage for corn and soybeans, while Pope County is losing coverage for soybeans, and GRP-GRIP grain sorghum coverage will be unavailable in Illinois next year.

Revenue-based GRIP and production-based GRP poli-

cies use county rather than individual yields as the basis for crop/price loss protection.

Counties were targeted based on low GRP/GRIP sales volume and/or inadequate National Agricultural Statistics Service (NASS) yield data needed to accurately determine coverage and claims. Illinois Farm Bureau supports efforts to improve risk assessment within the crop insurance system.

“Every time we lose risk management options, that’s a concern,” IFB risk management specialist Doug Yoder said. “On the other side of the coin, we’re glad RMA is continuing to analyze products and, where they’re not viable products, streamlining programs.

They’re making sure they have solid statistical analysis.

“We don’t want to see them

offering a product in a county where they don’t have significant enough analysis to properly administer policies. We don’t want bad claims or a lack of justifiable claims based on a lack of analysis.”

Other insurance products remain available for eligible crops in affected counties.

NASS county estimates for individual crops must be supported by at least 30 reports of both harvested acreage and yield, or reported production

must account for a minimum 25 percent of the current-year county production estimate.

Revised NASS reporting criteria reportedly has improved reliability of available county estimates, but has resulted in fewer publishable county estimates. In some cases, NASS no longer will produce county estimates for a given crop.

To help ensure GRP and GRIP operate in a “transparent” manner, RMA has reviewed eligibility of all coun-

ty corn, grain sorghum, cotton, and peanut programs. Criteria include whether the most recent U.S. ag census shows at least 50 farms in a county producing a covered crop.

Further, concentration of county acreage must score less than 1,000 on the HerfindahlHirschman Index, a measure used to ensure no single producer or small group of producers can unduly affect county average yield and thus “create” claims. — Martin Ross

FarmWeek Page 8 Monday, December 7, 2009

PRODUCTION

End is near: Most crops finally out of fields

BY DANIEL GRANT FarmWeek

One of the latest harvests in modern history finally is nearing completion across the state.

Many farmers took advantage of a relatively dry week last week to make significant progress with harvest and fall fieldwork.

“We’re winding down to an end here,” said Richard Sauder, manager of Tremont Cooperative Grain Co, who last week estimated 99 percent of soybeans and 96 percent of corn was harvested in his area.

“The only beans left are a few double-crops and some wet holes.”

Ron Moore, a Warren County farmer who also is a FarmWeek Cropwatcher and chairman of the Illinois Soybean Association, completed his harvest two days after Thanksgiving. He estimated on Friday about 20 percent of the corn crop and less than 5 percent of beans were left in his area.

“We’re still getting lines at

the elevators and elevators still are closing early,” said Moore, who noted moisture readings have remained high in much of the late-harvested corn. “If we get decent weather in 10 days, we should be done in our area.”

‘ We ’r e w i n d i n g d ow n t o a n e n d here.’

— Richard Sauder Tremont Cooperative Grain

Moore estimated his overall yields for corn and beans were down 10 to 15 percent compared to last year.

Meanwhile, the high moisture readings and early ear rot issues made this one of the least efficient harvests in years for the elevator industry, according to Sauder.

“Overall, it was not a pretty-looking crop,” Sauder said.

“And it’s been taking more gas per point of (moisture)

removal than we’ve seen in recent years. I’m sure dryer sales will be heavy next year.”

Fortunately, ear rot issues, which were common early in the season, “cleared up considerably” down the stretch as farmers entered their laterplanted fields, according to Sauder.

However, test weights remained light through harvest.

“This was one of the most unusual growing seasons I’ve ever experienced,” Moore said.

“I’m sure there will be some crops left to be harvested in 2010.”

Overall, Illinois farmers harvested 61 percent of the soybean crop and 53 percent of corn in November as conditions improved greatly compared to a soggy October.

The statewide average temperature last month (46.9 degrees) was 5.1 degrees above normal while the average precipitation (2.6 inches) was 0.7 of an inch below normal, according to the Illinois State Water Survey (ISWS).

Harvest conditions last month varied greatly, though, as rainfall totals ranged from 1 to 3 inches in Southern and Northern Illinois to 3 to 4-plus inches in Central Illinois (see map ).

The statewide precipitation

total from January through November (46.2 inches) is the third-wettest on record, ISWS reported. Last January through November was the fourthwettest on record at 46.1 inches of precipitation.

Seed orders slow to develop Seed orders for 2010 reportedly are about a month behind because of the late harvest.

But once farmers have time to start making their input decisions for next season, seed availability shouldn’t be a major issue, according to industry representatives who exhibited their products last week at the Greater Peoria Farm Show.

The rate of seed orders so far “is much later than normal,” said Dan Schneider, district manager in East Central Illinois for LG Seeds.

“Confirmed orders are probably a month behind,” he continued. “It will put a cramp in getting everything finalized.”

Illinois farmers as of the first of last week still had more than a quarter of the corn crop (28 percent) left to harvest while 4 percent of the soybean crop was uncut, according to the National Agricultural Statistics Service Illinois field office.

“This has been a very, very stressful year,” said Trent Griffith, sales director for Stone Seed Group in Pleasant Plains, who also farms in North Central Illinois. “Early orders are definitely off pace compared to past seasons. I do not anticipate that to be the case in the next four to six weeks.”

The seed harvest, despite the challenges this growing season, appears to be a good one, and Griffith believes seed quality is excellent for corn and at least satisfactory for beans.

“There shouldn’t be any supply issues other than brand new varieties” that were produced in limited quantities, Schneider said. “I think we’re going to be real busy the next three to four weeks.”

Schneider and Griffith look for seed buying activity to increase this month as farmers finally wrap up harvest and other fall fieldwork.

Farmers also are expected to take advantage of early-order discounts, some of which expire by the first of the year.

“Farmers should take advantage of opportunities to maximize early-pay discounts, but at the same time, they should be comfortable with their decision,” said Griffith.

He noted that some planting decisions will be difficult due to wild fluctuations in corn and soybean prices and the fact that many farmers didn’t complete fall tillage and/or fertilizer applications.

“Farmers should not look at 2009 results (to make variety selection decisions), Griffith added. “They need to look at a three-year average because 2009 is in a league by itself.” — Daniel Grant

FarmWeek Page 9 Monday, December 7, 2009

COMING EVENTS

USDA, Justice Department eyeing concentration

BY MARTIN ROSS FarmWeek

USDA and the U.S. Department of Justice (DOJ) plan to scrutinize current structure, control, influence, and competition in American agriculture through a nationwide series of “workshops” early next year.

The American Farm Bureau Federation (AFBF) is preparing December comments aimed at helping guide interagency review of concentration, antitrust, and regulatory issues facing crop, livestock, poultry, dairy, and seed/biotechnology sectors.

The public workshops — none of which currently is scheduled in Illinois — are expected to address the federal

Capper-Volstead Act, which set the stage for producer coops in the 1920s.

In addition, federal officials seek comments on application of antitrust laws to ag monopsony (the effect of limited buyers in a market) and vertical integration.

“USDA and DOJ have cast a very wide net,” AFBF’s Tara Smith told FarmWeek. “They basically want comments on everything under the sun — everything farmers have a concern about. Comments are going to vary from sector to sector, because the industry and the challenges facing the industry vary sector to sector.

“We’re glad DOJ is taking a newfound interest in looking at

Profit potential focus of Illinois Dairy Days Dairy producers who have dealt with wild swings in the price of milk and inputs in recent years can get some information to help their bottom line next month as Illinois Dairy Days are held around the state.

The event is sponsored by the University of Illinois and the Illinois Department of Public Health. The theme of the 2010 Illinois Dairy Days is “Profit Potential.”

A series of one-day programs will be held Jan. 7 at the Community Center in El Paso; Jan. 8 at Yoder’s Country Kitchen in Arthur; Jan. 12 at the Adams County Farm Bureau in Quincy; Jan. 12 at the Super 8 Motel in Jerseyville; Jan. 13 at the Community Club Building in Okawville; Jan. 14 at the American Legion Hall in Breese; Jan. 19 at the Community Center in Elizabeth; Jan. 20 at Highland Community College in Freeport; and Jan. 21 at the Stratford Inn in Harvard.

Each program, with the exception of the one in Jerseyville, will begin at 8:45 a.m. and conclude at 2:30 p.m. The meeting in Jerseyville will begin at 7:30 p.m.

Topics that will be covered at each meeting include feeding challenges with today’s low milk prices, optimizing forages in the lactating ration, analyzing your dairy farm financial picture, improving profits with milk quality, looking ahead in the Illinois dairy industry, reducing feed shrinkage, farm regulations decision making, and managing an efficient reproduction synchronization program.

For more information about registration or fees for Dairy Days, contact your local Extension office or visit the website {http://www.livestocktrail.uiuc.edu/dairynet/}.

some of these things. Folks in Illinois and a number of other places have had some concerns for several years now. But there are definitely some cautions here — we don’t want to go too far.

“USDA is talking about things like whether or not Capper-Volstead requires changes.

We’re very supportive of Capper-Volstead and farmer cooperatives — we don’t think

that’s an area that requires changes.”

Smith suggested competition issues could emerge in AFBF delegate debate this January in Seattle.

Illinois Farm Bureau counsel Jerry Quick is especially interested in agency discussion of product contracts — the topic of a planned Southeast workshop centering on poultry and an issue facing Illinois

grain producers. “That one really touches and concerns the Midwest,” Quick advised.

In the seed area, Smith reported AFBF is not concerned so much about crop patents that provide major biotech companies a shortterm “government-endorsed monopoly” as it is about how the move to “generic” traits will evolve once patents on GMO products expire.

FarmWeek Page 10 Monday, December 7, 2009

NEW!

FarmWeekNow.com F Wee W We ee ek kNow.co om m

Bringing everything everryythhing together toggether for o the Illinois or Ill llinois Farmer F The news-gathering w ws-gathering te team eam of FarmW FarmWeek Weeekk and the RFD Radio Ne Network etworkk gives you y news whenn it happens.

Real-time news from thee e ering largest farm news-gathering team in the state Audio or video features support many news stories

Weather you can use – from experts in ag weather information

One source for Illinois farmers – text,, pphotos,, audio, vid video, deo, quotes, weather, weather r, cash c prices and more..

Visit V isit F FarmWeekNow.com ar mWeekNow.com

FarmWeek Page 11 Monday, December 7, 2009

FarmWeek Page 12 Monday, December 7, 2009

GROWMARK

GROWMARK unveils 2010 essay contest theme The theme for the 2010 GROWMARK essay contest is: “Exploring Careers in Agriculture.” The contest is open to all high school FFA members in Illinois.

This will mark the 17th year for the competition, sponsored by the GROWMARK System and FS member cooperatives, in conjunction with state FFA leaders.

The contest is intended to help young people develop their writing skills and to teach them about current issues impacting agriculture and the unique role of cooperatives.

This year, students will describe an agricultural career of interest and inter-

view local FS personnel to learn the role that career plays in a cooperative business.

Essays should be 500 words in length, typed, and double-spaced. The postmarked entry deadline for

FFA members is March 12.

Additional program details have been sent to agriculture teachers and are online at {www.growmark.com} (Click on About Us/Youth and Young Farmers).

“Agriculture is a diverse

industry with many current and future opportunities for employment,” said Jane Castellano, GROWMARK communications coordinator.

“Writing an essay gives students a chance to research rewarding and challenging

careers in agriculture-related fields.”

The state winner will earn a $500 scholarship and the winner’s FFA chapter will receive a $300 award. Four state runners-up each will win $125 scholarships.

Farm economics summit meetings set around the state Farmers can receive directions to navigate through challenging economic times at a series of farm economics summit meetings that will be held next week at five locations around the state.

The theme for the 2009 Illinois Farm Economics Summit is “The Profitability of Illinois

Agriculture: Profitability at a Crossroads.” The meetings are sponsored by the University of Illinois Extension.

“This was a year of tremendous uncertainty by any standard,” said Darrel Good, U of I ag economist. “There is the possibility (in 2010) of better times due to the recovery in the general economy and some

lessened pressure on input costs.

“However, this only emphasizes the need for sound economic information and analysis.”

The Farm Economics Summit will be held Dec. 14 at the I Hotel and Conference Center in Champaign; Dec. 15 at the Interstate Center in

Bloomington; Dec. 16 at the Best Western Prairie Inn in Galesburg; Dec. 17 at the Hickory Grove Banquet and Conference Center in Rochelle; and Dec. 18 at the Holiday Inn in Mt. Vernon.

Each session begins at 7:45 a.m. and concludes at 1:30 p.m. Registration may be completed online at {www.farmdoc.illinois.edu/}.

Additional information is available by calling Sue Esposito at 217-333-5506.

FROM THE COUNTIES

L

ASALLE — Farm Bureau will sponsor stroke detection screenings from 9 a.m. to 4 p.m. Wednesday, Dec. 16, at the Farm Bureau office. Stroke, abdominal aortic aneurysm, peripheral vascular disease, and osteoporosis screenings are available. Cost is $80 for members and $120 for non-members.

Call 877-732-8258 for an appointment or more information.

EE — Lee County Farm Bureau Foundation scholarships ranging from $250 to $750 are available for high school seniors pursuing a major in an agricultural field of study. In addition, the Larry J. Green Memorial Scholarship of $300 and the Dean Henkel Memorial Scholarship of $750 are available. Applications are available on the website {www.leecfb.org} or at the Farm Bureau office. Applications are due Feb. 1. Call the Farm Bureau office at 815857-3531 for more information.

EORIA — A free calendar featuring local photos and activities will be given to each person visiting the Farm Bureau office. Additional calendars are $3.

• Farm Bureau will sponsor a Stroke Detection Plus program Thursday, Dec. 10, at the Farm Bureau office. Four screenings are available for $80. Call 877-732-8258 for an appointment or more information.

L

P

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

FarmWeek Page 13 Monday, December 7, 2009

SPECIALTY GROWERS

Illinois specialty crops conference slated Jan. 6-8 The Illinois Specialty Crops, Agritourism, and Organic Conference will be Jan. 6-8 at the Crowne Plaza Hotel in Springfield.

Three pre-conference workshops will be offered concurrently during the daytime on Wednesday, Jan. 6, which will include “Grow Your Market: Creating a Memorable Experience for Customers,” “Getting Started in Local Food Production and Marketing,” and “Expanding Seasons and Markets with High Tunnels.”

On Thursday and Friday, the conference will kick off with an opening session entitled “From Market Gardening to Commercial Readiness: Keys to Effective Production and Marketing Across a Range of Market Arenas“ by Tim Woods, University of Kentucky.

The remainder of the conference will include the traditional concurrent breakout sessions on fruits, vegetables, herbs, irrigation, agritourism/marketing, and business management.

New to the conference this year will be two organic tracks.

Thursday evening will feature a banquet followed by the announcement of the annual cider contest winners and comments from Doc Patterson, fire service chaplain for the Lake County Honor Guard.

Peach and apple production will take center stage of the fruit breakout sessions with talks on disease management, thinning, insecticides, and fertility management. James Schupp, Penn State University, will discuss “Plant Growth Regulators for Apples and Peaches” and “Current and

Auction Calendar Tues., Dec. 8. 10 a.m. 80 Ac. Edgar Co. First Bank and Trust-Land Trust #893-031, CHRISMAN, IL. Moss Auction Team, LLC. Tues., Dec. 8. 10 a.m. 152.70 Ac. Warren Co. Ruth M. Russell Estate, MONMOUTH, IL. Van Adkisson Auction Service, LLC. Tues., Dec. 8. 1 p.m. 160 Ac. Champaign Co. MAHOMET, IL. Jerry Wallace, Auctioneer.

Tues., Dec. 8. 10 a.m. 120 Ac. LaSalle Co. Helen M. Zehnder Trust, GRAND RIDGE, IL. Bradleys’ and Immke Auction Service.

Thurs., Dec. 10. 10 a.m. 120.50 Ac. Clay Co. Theodore E. Bahl, WENDELIN, IL. Terry Wilkey Auction Service.

Fri., Dec. 11. 10 a.m. McDonough Co. Land Auction. Heirs of Eileen Toney Est., BLANDINSVILLE, IL. Lowderman Auction Co. Sat., Dec. 12. 11 a.m. Farm machinery and miscellaneous. Ervin and Vi Kruse, MT. OLIVE, IL. Ahrens & Niemeier.

Sat., Dec. 12. 10 a.m. 150.5 Ac. Knox Co. R.E. (Jack) Wherley Trust, ABINGDON, IL. Van Adkisson Auction Service, LLC. Sat., Dec. 12. 10 a.m. Farm Close Out Auction. Shissler Farm, KEITHSBURG, IL. Lane R. Hyett, Auctioneer.

Sat., Dec. 12. 10 a.m. Farm machinery.

Dave and Loy Caudell, CALHOUN, IL. Rothrock Auction LLC. Mon., Dec. 14. 10 a.m. Farm Close-Out Auction. Bill and Pat Garrett, TAYLORVILLE, IL. Cory Craig, Auctioneers.

Tues., Dec. 15. 10:30 a.m. Farm machinery and miscellaneous. IL Delta Farms Partnership, ONARGA, IL. Schrader Real Estate and Auction Co., Inc. Thurs., Dec. 17. 10 a.m. Estate Auction. Wayne Morrow Estate, HICKMAN, KY. James R. Cash, Auctioneer.

Potential Approaches to Thinning in Apples and Peaches.”

“Fertility Management for Fruit Production” will be the focus of a presentation by Eric Hansen, Michigan State University.

Topics in the vegetable sessions will run the gamut of disease, insect, and weed management to production problems to marketing. Carl Cantaloupi, North Carolina State University, will discuss “Producing and Marketing Asparagus.” Vegetables focused on include asparagus, tomatoes, peppers, squash, cucumbers, and sweet corn.

The agritourism/marketing track will feature sessions on agritourism liability insurance, customer service, public relations and advertising strategies, and

increasing marketing impact with photography. Marsh Laux, Iowa State University Extension, will speak on “Iowa Agritourism Development.”

Herb concurrent sessions will include subjects such as field herb production, composting processing and landscape waste, transitioning to organic greenhouse growing, seasonal herbs, and herb of the year. Jim Crosby, Crosby Mint Farm, St. Johns, Mich., will talk about “History of Mint Production in the U.S. and the Changing Market” and “Medicinal Uses of Mint and Sustainable Living.“ Organic production joins the conference this year with two concurrent tracks of educational programming focusing on the

following areas: integrated organic vegetable production systems, grain and livestock systems, fruit production, and research.

Pete Johnson, Pete’s Greens, Craftsbury, Vt., kicks off the two organic sessions with “Building a Healthy Food System,” followed

by Steve Pincus and Beth Kazmar, Tipi Produce, Evanston, Wis., with a talk on “Farming and Marketing in a Homegrown Wisconsin Co-op.”

The 21st annual cider contest and the eighth annual hard cider contest again will be held in conjunction with the conference.

For more information, contact Elizabeth Wahle, U of I Extension, at 618-692-9434, e-mail her at wahle@uiuc.edu, or visit the website

{http://www.specialtygrowers.or g/confagenda.htm}.

The trade show has spaces for more than 50 exhibitors, and space is still available for those wishing to exhibit their specialty crop products or services.

To receive registration materials or to obtain exhibitor information, contact Diane Handley at 309-557-2107 or via e-mail at handley@ilfb.org. A detailed conference agenda can be viewed at {www.specialtygrowers.org}.

The Crowne Plaza Hotel is reserving a block of rooms for $83 per night plus tax. Call the hotel directly at 217-529-7777 to make your reservations and ask for the Illinois Specialty Crops, Agritourism, and Organic Conference rate.

FarmWeek Page 14 Monday, December 7, 2009

PROFITABILITY

Global economy improving but remains fragile

BY JIM CHARLESWORTH

As 2009 draws to a close, many Americans are facing difficult times because of the global economic downturn.

The global recession has touched nearly everyone to some extent.

The highly integrated world financial and prodJim Charlesworth uct markets have provided a conduit to rapidly transmit recessionary pressures throughout the global economy.

Global GDP (gross domestic product) growth for 2009 is expected to decrease about 2.1 percent. However, looking ahead to 2010, the global economy is forecast to

rebound at a positive 3.2 percent, notably above the historical yearly average.

Economic growth in most developing countries remains relatively strong, although hampered by reduced export demand. For example, China’s growth this year will slow to 8.5 percent, supported by massive stimulus spending, and will build to more than 10 percent annual growth in 2010.

As the largest world economy, the United States officially entered a recession in December 2007, but the economy has demonstrated signs of recovery during the second half of 2009. The eye of the storm has passed, but the economy continues to climb a slippery slope.

Declining household wealth has caused a sharp pull-back in consumer and business spend-

ing. The pace of job losses has been the largest since the Great Depression, reaching more than 7 million. Extremely aggressive fiscal and monetary stimulus was necessary.

However, these programs have contributed to massive federal deficits forecast at $1.4 trillion this year, while raising fears of inflation, higher interest rates, and burdensome tax policy for decades to come.

The U.S. economy expanded to positive territory at 3.5 percent in the third quarter after shrinking for four consecutive quarters, marking an apparent end to the worst recession since World War II. But the recovery is expected to be slow and painful next year as businesses shed jobs and credit remains tight.

Other economic indicators continue to suggest that a

recovery, although slow and fragile, is in the offing.

Economic data are showing positive direction, including historically low borrowing rates, tame inflation, an up tick in personal income and consumption, and productivity growth.

The global economy has gained traction in the second half of 2009, especially in emerging markets, and will continue to strengthen in 2010, although a few bumps in the road will be felt along the way.

As we move into the holiday season, remember to be thankful for all your blessings and reach out to help those who are less fortunate.

Jim Charlesworth is GROWMARK’s marketing research director. His e-mail address is jcharlesworth@growmark.com.

Farm retailers remain positive despite slumping economy

BY DANIEL GRANT FarmWeek

Farm retailers were fairly optimistic last week at the 28th annual Greater Peoria Farm Show despite a poor turnout at the event and a slumping economy in general.

Attendance at the show, which is billed as Illinois’ largest indoor farm show, was “down considerably” according to exhibitor Pete Bailey, a territory sales manager for Case IH. Many farmers still

were harvesting or completing other fall fieldwork.

Meanwhile, recent reports indicate rural America continues to battle recessionary pressure.

The Association of Equipment Manufacturers reported tractor sales for the first 10 months of the year were down 22.8 percent compared to the same time last year. Meanwhile, the Federal Reserve Bank of Chicago recently reported farmland values for

M A R K E T FA C T S

Feeder pig prices reported to USDA*

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $31.00-$40.00 $37.84 $38.00-$41.00 $39.13 n/a n/a This Week Last Week 24,126 16,868 *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 $56.67 $52.77 $41.94 $39.05

Change 3.90 2.89

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

This week 82.05 82.14

Prv. week 85.00 85.00

Change -2.95 -2.86

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 93.83 93.69 0.14

Lamb prices Confirmed lamb and sheep sales This week 1,331 Two week’s ago 950 Last year 914 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $95-$100; 110-130 lbs., $93. Good and Choice 1-2: 60-90 lbs., $110. Slaughter Ewes: Utility and Good 1-3: $40-$42. Cull and Utility 1-2: $40.

Export inspections (Million bushels)

Week ending Soybeans Wheat 11-26-09 41.3 14.7 11-19-09 80.5 16.1 Last year 40.0 20.6 Season total 473.4 425.0 Previous season total 355.9 613.3 USDA projected total 1325 875 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Corn 23.8 26.1 37.5 397.8 403.9 2100

the third quarter were 4 percent lower than a year ago.

“We’re moving out of a year with high input costs and into a year with lower input costs for grain farmers and the aftermath of slimmer margins (in terms of available cash reserves and/or credit worthiness),” said Mike Doherty, Illinois Farm Bureau senior economist.

“We can expect more farmers will be exposed to a higher level of financial risk in 2010 than we have seen in past years.”

The level of risk for each farmer next year will depend on how much debt is carried over, which is related to the timing of their input purchases and crop yields, according to the economist.

However, farm equipment sales have remained fairly strong this year in Illinois despite the slumping national economy, according to industry representatives at the show.

“It’s been a down sales year compared to 2008, but we actually increased sales (this year) compared to years prior to 2008,” Bailey said.

Ryan Myers of Kelly Sauder Rupiper Equipment (John Deere) in Pontiac, said many farmers were able to buy equipment this year due to the carryover effect of strong commodity prices in 2008.

“We haven’t seen a huge downslide in equipment sales,” he said. “But next year might not be as good” due to a projected drop in farm income for 2009.

Equipment retailers expect a flurry of activity in coming months for items such as soil finishers as the late harvest could force a good deal of fall

tillage to be completed in the spring.

Two segments of the ag equipment market that have dropped off this year for some retailers in Illinois are sales of small horsepower (lawn and garden) equipment and high horsepower tractors.

Jamie Buss of Kelly Sauder Rupiper believes equipment sales to “hobby farmers”

declined this year due to the economic recession.

Meanwhile, purchases of large tractors may have been harder for some farmers to justify this year compared to 2008 due to lower commodity prices and higher input costs, according to Todd Weitekamp, precision farm specialist for Birkey’s in Gibson City.

Milk price tops $14 The Class III price for milk adjusted to 3.5 percent butterfat for the month of November was $14.08, a $1.26 increase from the previous month.

Prices have recovered nicely and have added more than $4 since the sub-$10 prices seen this summer.

Prices continue to see strong support as the holiday season arrives. Thanksgiving, Hanukkah, and Christmas are events that focus on families and cooking.

This added demand for milk, cheese, and butter has lent strong support for dairy markets in recent months.

FarmWeek Page 15 Monday, December 7, 2009

PROFITABILITY Corn Strategy

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

Cents per bu.

2009 crop: The shortterm trend might have turned down, but the longer-term trend still is higher. Use rallies to make late harvest sales, especially on commercially stored corn. It may not pay to store commercially given limited upside potential and the cost of storage. If March futures rally to $4.35, boost sales to 50 percent. Check the Cash Strategist Hotline; we might change the recommendation at any time. But we see little reason to sell weakness.

For farm-stored corn, the large futures carry makes hedge-to-arrive contracts for winter/spring delivery attractive. Because of quality issues, be careful storing corn beyond March/April.

2010 crop: We are considering initiating sales if December 2010 futures move above $4.50.

Fundamentals: Flooding in Rio Grande do Sul in Brazil could reduce corn acres slightly. The lack of action on the ethanol blend rate has dampened optimism slightly.

Soybean Strategy

Soy export sales impressive Export sales continue to accumulate at an impressive pace in soybeans and soy prod-

Basis charts

ucts. In particular, the large meal sales and shipments are contributing to strong crush margins and an aggressive crush pace.

Soybean shipments are as aggressive as the sales. During a recent five-week period, 10 percent of the marketing year, we shipped 23 percent of this year’s expected exports.

Corn and wheat sales continue to lag, but in recent weeks, corn sales have started to improve somewhat. We can’t help but wonder if exporters are not aggressively pursuing corn sales knowing that load-out capacity is being tied up by soybeans and meal.

Wheat sales continue to be undercut by the aggressive sales out of Russia and the Ukraine. Those will diminish during the winter, opening the door for our sales and shipments to be larger in the latter part of the marketing year.

AgriVisor endorses crop insurance by

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

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

309-557-2274

2009 crop: An absence of outside money coming into the market at the beginning of the month triggered a wave of profit taking, dragging prices lower. Continue to leave an order to boost sales to 50 percent if January futures hit $10.80. We could change the recommendation at any time, but are reluctant to sell weakness just yet. Check the Cash Strategist Hotline frequently for possible changes.

2010 crop: We are considering initiating sales if November 2010 futures approach $11. Check the Cash Strategist Hotline occasionally for a specific recommendation.

Fundamentals: Demand remains the key fundamental driver of the complex.

Demand for soybeans to process is equally as strong as demand for export. That will persist into the first part of 2010. Beyond that, the key lies with South American weather, specifically Brazilian weather. With end users not well covered beyond March,

any serious scare could spark a quick rally. Without that, prices will tend to be soft as 2010 unfolds.

Wheat Strategy 2009 crop: The recent wheat price strength has been tied to an influx of speculative buying. Once speculators step away from the market, we anticipate softer prices as wheat has little fundamental backing.

Chicago December futures reached our $5.75 target to push sales up to 80 percent. Use Chicago March futures rallies above $5.75 for catch up sales.

2010 crop: If Chicago July futures rally to $6.15, make an initial 25 percent sale.

Fundamentals: Weekly export sales continue to be routine, with this last week’s sales only totaling 390,700 metric tons (14.3 million bushels). Egypt again snubbed the U.S. on its recent purchase, buying wheat from Russia and Germany. It cited high U.S. prices as the reason for not buying U.S wheat. The U.S. again has returned to its typical position as the “source of last resort” in the world trade.

FarmWeek Page 16 Monday, December 7, 2009

PERSPECTIVES

Delights of country life through young eyes A typical neighborhood includes what? A street dabbled in light and shadow from the trees; houses as different and as uniform as the inhabitants; neighbors chattering and darting here and there like the squirrels above; cars whizzing by; and the smell from the nearest restaurant moving on the wind to remind the inhabitants of their lurking hunger.

I, however, live in a place alien to this picture-perfect movie set of a bustling, noisy, little street of uniformity and obligations.

I reside where the lights and noises of the world dissolve into rolling hills, peaceful woods, bubbling, gurgling creeks, and vast stretches of corn and beans that bring color and substance to the countryside.

Time slows. Wood and field meld into one another. The wind kisses and tickles the cheek. In spring, the sweet scent of rain hangs at the edge of all KATELIN other smells; in summer, corn PATTIE demands recognition as it purges the air of all rival smells; in fall, apples and pumpkins leak their scents from oven vents; in winter, the clear, crisp scent of cold bites the nose.

To walk barefoot is to step back in time.

The grass cools, the dirt massages, and the moss comforts as all squish and caress the toes. At night, the woods erupt with praises to heaven. The birds chirp and chatter, “Goodnight.”

Owls ask, “Whoooo?” Frogs and crickets provide the steady backbeat; and the coyote howls to the moon. The moon and stars shed their light unhindered by smoke or smog.

My farm contains all the above. It’s a small property compared to others, but it still contains life.

The woods to the north are quiet and keep to themselves, protected by an outside layer of brush.

Once inside, though, they expand and make room. Green here is no longer a color but a presence in itself.

Deer paths and tractor roads snake through the ever-growing trees. Two ponds and creeks find themselves nestled in this lush oasis in the great corn and bean desert.

Every year brings changes, but the woods remain the same. Trees fall, water steals a little earth, and paths become overgrown; but the smell and essence of the wood remains the same.

To the south are the alfalfa fields currently being overgrown by prairie grass. The alfalfa retaliates by twisting and tangling around one’s feet and ankles. Hay bales, excellent for jumping, outline the boundary of field and woods.

Trees start growing again but are now dispersed and trimmed to make room for my house and my grandmother’s a little ways away.

Here the land dips and creates valleys.

When the rains come, the valleys fill into a river and the yard becomes swampland: squishy and soft.

The past hides in the taller grasses along with the dilapidated barn, green house, and corncrib, all entangled in ivy and standing only on the foundations of memories.

The wind blows through here with fondness and power, bringing the smells of nature, sweet and mysterious; the tastes of nearby kitchens, mouth-watering and rich; and the sounds of the wildlife, melodic and steady.

Around the entire property is a simple barbed wire fence: 40 years old, straight, unchallenged, and put up by my grandfather.

The country is a world of peaceful contradictions.

It is always changing, but ever the same; always moving, yet ever standing still; always dying, but ever living.

All things here are connected and woven together.

All things blend and fade away like time itself. This is where I live.

Katelin Pattie is a junior at Jacksonville High School and also takes a dual-credit writing class at Lincoln Land Community College. She lives with her family on her grandfather’s farm near Jacksonville.

Farmland restoration putting different spin on urbanization Who hasn’t driven by a suburban shopping mall with empty stores or through a big city with abandoned warehouses, boarded-up factories, and vacant office space?

Lately, a lot of foreclosed homes and half-finished condo developments also have been dumped on the market by the Great Recession.

The same cannot be said for farmland.

It’s hard to find STEWART TRUELSEN anyone today who thinks we have too much farmland, or too many farms and farmers.

Surplus production in some commodities occasionally occurs but nothing like the chronic surpluses of decades ago.

Farm real-estate values declined only 3.2 percent in the latest year, according to USDA’s annual report released

in August. It was the first yearly decrease in farmland values in 20 years, and nothing like the declines experienced by other real estate.

Nevertheless, farmland continues to be converted to urban uses at a rate of less than 0.1 of a percent of U.S. farmland per year.

The total loss may not seem great, but local farmland losses can be alarming and have led over the years to public support for farmland protection laws, agricultural easements, and other programs.

Farmland preservation — saving the valuable farmland we have — is a familiar concept, but farmland restoration or the notion of reversing urbanization is a new idea for most folks.

Yet, that’s exactly what is being talked about for the city of Detroit, Mich.

A New York Times article referred to the idea as the “shrinking cities” movement, and several articles also have appeared in magazines propos-

ing an urban farm concept.

Ironically, the idea is reminiscent of one auto pioneer Henry Ford had in the 1920s.

Ford proposed developing the South in a way that farms and manufacturing centers would co-exist.

This time around, the idea involves cities in the Rust Belt, especially Detroit.

One plan has Detroit shrinking back to its core with smaller urban villages and farms radiating from it.

Detroit’s appeal is that it has plenty of land, more than Manhattan, Boston, and San Francisco combined.

Detroit’s population peaked around 1950 at 1.85 million people. Less than half that many people live there today. The median selling price for a home was just $7,100 last summer, less than the cost of an acre of good farmland in some places.

If the idea of plowing up abandoned homes and factories for cropland seems wildly far-fetched, remember that

Detroit was once a small French fort and missionary outpost.

No one then could have imagined it becoming the Motor City.

If this blighted city has become “a massive failure,” as the Times suggests, then maybe it is time to change direction.

In the decades ahead, perhaps the Rust Belt will refer to fields of rusty-colored, ripe grain sorghum instead of

cities with old steel plants.

One thing is for certain, America needs to keep its productive agricultural land.

Whatever the next new economy looks like, a high value should be placed on farmland.

Stewart Truelsen is a regular contributor to the Focus on Agriculture column series and an author about the American Farm Bureau Federation history. His e-mail address is stut@fb.org.

Let us know your opinions

Letters are limited to 300 words, and a name and address must accompany each letter to be published.

FarmWeek reserves the right to reject any letter. No political endorsements will be published.

All letters are subject to editing, and only an original bearing a written signature and complete address will be accepted.

A daytime telephone number is required for verification; however, the number will not be published.

Only one letter per writer will be accepted in a 30-day period. Typewritten letters are preferred.

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