FarmWeek January 18 2010

BRITISH PETROLEUM will star t building one of the nation’s first commercial cellulosic ethanol plants this year. ......................................9

TOTAL WINTER WHEAT seedings in Illinois are the lowest on record, according to the National Agricultural Statistics Service state office. .......................................................7

IFB LEADERS led efforts at the AFBF annual meeting to achieve more uniform interstate flood prevention/flood fighting capabilities. ........................................3

Monday, January 18, 2010

Two sections Volume 38, No. 3

AFBF stresses cap and trade opposition

IFB leads charge against ‘throttling back’

BY MARTIN ROSS FarmWeek

Illinois Farm Bureau last week led producers nationwide in opposing congressional capand-trade measures and administration greenhouse gas (GHG) regulations which IFB President Philip Nelson said would lead to a “throttling back” of U.S. crop production.

At the American Farm Bureau Federation’s (AFBF) annual meeting in Seattle, IFB kicked off policy debate with a “sense of the delegate” resolution urging AFBF to “send the strongest possible message to Congress: ‘Don’t Cap Our Future.’”

IFB championed policies aimed at minimizing rural flood damage (see page 3) and helped defeat a proposed estate tax “carve-out” for farmers, which Nelson feared could undermine tax reforms more likely to clear Congress (see page 2).

Armed with findings by AFBF’s grassroots Federal Deficit Task Force, delegates supported provisions that seek to balance the federal budget by 2019 via reduced spending

and, if necessary, taxes targeted solely at deficit reduction.

Climate of concern Illinois’ climate resolution referenced AFBF’s ongoing campaign to alert lawmakers to the threats posed by House-proposed industrial and utility GHG emissions caps. AFBF collected member signatures and distributed caps for delivery to Capital Hill in an effort to derail measures which IFB believes would spur “significantly higher production costs” and cost 2.3 million jobs over the next 20 years.

Policy costs would far outweigh the potential benefits of proposed ag-generated greenhouse “offsets,” which would be unavailable to many farmers, IFB stated.

The resolution cited USDA projections indicating offsets instead would spur tree plantings on 59 million acres of existing crop and pasture land.

By United Nations estimates, the world must produce 70 percent more food over the next 40 years to feed 2.3 billion new people, newly re-elected AFBF President Bob Stallman warned.

He stressed “this battle cannot be won by creating more farmland,” and Nelson

light of day in the Senate.”

See AFBF, page 4

Newly re-elected to his sixth two-year term, American Farm Bureau Federation (AFBF) President Bob Stallman, left, congratulates Illinois Farm Bureau President Philip Nelson for IFB’s 2009 program achievements during ceremonies at last week’s AFBF annual meeting in Seattle. In addition to receiving all five AFBF Awards of Excellence for outstanding programs, IFB earned two state President’s Awards, for ag education and promotion and for policy implementation. President’s Awards are presented to quota states that have the highest score within their membership group size and that have earned one or more Awards of Excellence. In addition, Paul Berbaum of Champaign and his invention, the portable “auger dolly,” featured in FarmWeek Jan. 4, earned grand prize in the AFBF Farmer Idea Exchange competition in Seattle. (Photo by Ken Kashian)

‘Soy Boy’ praises ag

Governor calls for tax reform, but offers no plan

BY KAY SHIPMAN FarmWeek

Periodicals: Time Valued

said he fears severe cuts in U.S. food production if House proposals “see the

Gov. Pat Quinn last week in his first State of the State speech challenged the General Assembly to reform the state tax structure, but didn’t specify how he would go about making any changes.

Quinn noted he inherited a budget deficit of $11.5 billion from his impeached predecessor and cut $2 billion from the budget. Quinn must present his budget proposal by Feb. 17, but is seeking to delay his budget message until March.

“We’ve done everything we can,” Quinn said. “The government has tightened its belt.”

The state’s tax system relies too much on property taxes and is not based on a person’s ability to pay, the governor added.

“I look forward to finding a fair way to tax,” he said, without explaining his vision of a fair tax structure beyond reducing the

tax burden for 5 million poor and lowincome Illinoisans.

Quinn focused on the state’s economy and ideas to “prime the pump and get our economy moving” in much of his 75minute speech.

Referring to himself as “the building governor,” Quinn highlighted a need to improve the state’s transportation infrastructure, including roads, bridges, airports, and rail, both freight and passenger rail. He described Illinois as the nation’s inland port, but didn’t add water transport to his list of projects.

Quinn offered no specific plan for paying for the infrastructure improvements other than possibly using federal dollars. He said a decision was expected soon on Illinois’ application for a highspeed rail project to connect Chicago and St. Louis.

Agriculture is another important economic engine for the state and provides

FarmWeek on the web: FarmWeekNow.com

40 percent of the state’s economy, Quinn told the crowded House chamber. “We need to honor the people who till our soil,” he said.

The governor went on to describe alternative fuels, plastics, and roofing materials — all made from soybeans. As he has in many previous speeches, Quinn told his audience about an award he received from the Illinois Soybean Association and joked that his nickname is “Soy Boy.” “We need to grow opportunities to export products,” Quinn added.

He also plugged the importance of Illinois’ biotechnology industry, noting that Chicago again will host the international biotechnology conference this summer.

Renewable energy, especially windbased energy, is a growing industry, Quinn noted. He received a round of applause after he described wind energy as “clean and all-American.”

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

FarmWeek Page 2 Monday, January 18, 2010

Quick Takes DOJ SOLICITS MONSANTO — The U.S. Department of Justice (DOJ) has demanded data from Monsanto on its GMO soybean traits business. The request seeks confirmation that, as Monsanto previously indicated, farmers and other seed companies will have access to first-generation Roundup Ready beans following patent expiration in 2014.

Monsanto is voluntarily cooperating with the DOJ to answer questions about its business and the ag industry. The company has provided access to millions of pages of documents to ensure regulators’ questions are being addressed. DOJ acknowledged that it is investigating “the possibility of anticompetition practices in the seed industry.”

The DOJ and USDA plan one of a series of ag concentration “workshops” dealing with competition in the biotech industry. Monsanto’s clout in the industry is expected to be a prime focus of the agencies’ review.

IDEAS TO GROW RURAL ECONOMY — USDA recently gathered rural leaders from Illinois, Missouri, and Iowa at a St. Louis forum to discuss ideas about rural economic development, one of several such meeting being held across the country.

Illinois Rural Development and Farm Service Agency leaders helped host the meeting. Forum recommendations will be presented to President Barak Obama and Secretary of Tom Agriculture Vilsack.

Recommendations ranged from tax cuts for businesses to enhanced broadband access in rural areas. A need for training, especially to improve skills of the current workforce, surfaced several times. Lenders were encouraged to help businesses and entrepreneurs learn about available resources that support their business plans.

AGRICULTURAL FAIRS MARK CENTURY — Gov. Pat Quinn was to help the Illinois Association of Agricultural Fairs celebrate the group’s 100th convention last weekend in Springfield. The convention included discussion of funding opportunities for local fairs and a display of county fair and association memorabilia. Sixty-eight young women represented their counties in the Miss Illinois County Fair Queen contest that concluded Sunday with the crowning of the new queen.

(ISSN0197-6680) Vol. 38 No. 3

January 18, 2010

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GOVERNMENT

Estate tax endangers threatened wildlife

BY MARTIN ROSS FarmWeek

Federal estate tax reform is vital to farm families that have struggled to build “a tremendous amount of intergenerational equity,” according to Robert Gordon, senior outreach adviser and property rights specialist with The Heritage Foundation.

Given the significant environmental capital often tied up in those holdings, Gordon argues the tax liability facing farm heirs also threatens more than 1,300 endangered species.

Under a congressional loophole, the newly repealed estate tax is set to resurface in 2011 at a low $1 million individual exemption and a 55 percent maximum rate. The House has voted to permanently extend 2009’s $3.5 million exemption, but without any future adjustments to account for annual inflation.

The Senate has not yet acted on estate tax legislation, and Farm Bureau supports proposals to raise the exemption to $5 million, indexed to inflation.

Gordon sees federal endangered species regulation as a “club” that has been used as a land use control mechanism.

“I don’t care if you’re talking about Illinois or California or Florida — you can find a critter almost anywhere that‘s somehow affected by any type of productive land use,” he told FarmWeek at the American Farm Bureau Federation annual meeting last week.

At the same time, he noted

many multigenerational farms provide crucial wildlife habitat.

The estate tax could eliminate existing habitat as well as productive farmland, especially if

The estate tax impact on farms, ranches — page 16 lawmakers fail to build some form of inflationary adjustment into future “death” taxes and more farms are brought under its shadow.

“If these people have some asset on their property — an environmental asset — and it’s in really good condition, how

State estate tax back to zero

BY KAY SHIPMAN FarmWeek

The estate tax rate on both the federal and state level currently is zero for 2010 because Congress has taken no action on the matter, according to Kevin Semlow, Illinois Farm Bureau director of state legislation.

State law decoupled the Illinois estate tax from the federal law from Jan. 1, 2003, to Dec. 31, 2009. As of Jan. 1, the state estate tax automatically was re-coupled to the federal level, Semlow noted. And as of that date, the federal rate dropped to zero.

If Congress or the General Assembly do not change the current laws before Jan. 1, 2011, the tax rate will return to 2001 levels, Semlow added. On that date, the exemption level will return to $1 million on the federal — and state — level because the state estate tax once again will be coupled to the federal tax, he explained.

While no one knows what is going to happen, the state government had estimated about $280 million would be collected from the state estate tax this year, but that won’t happen with a rate of zero percent, Semlow said.

With such a huge revenue loss, political insiders have speculated that an attempt will be made to again decouple the state estate tax from the federal estate tax, according to Semlow.

“Nothing officially has been introduced, but there is a lot of talk,” Semlow said. IFB will monitor the situation.

ISBE holds the line on ed budget funding The Illinois State Board of Education (ISBE) last week recommended the same level of funding for fiscal year 2011 that it had in the last fiscal year.

The budget recommendation would maintain current state funding to education; fully fund state aid to districts and mandated programs, such as special education and transportation; and restore funding for bilingual and early childhood ed to FY2009 appropriation levels.

The per-student funding level would remain at $6,119 for FY2011.

“We know our state is in grave financial distress, and this will again be a tight budget year, but we can’t afford to shortchange children,” said Jesse Ruiz, ISBE chairman.

ISBE also recognizes a cut in education funding is a possibility for FY2011, because the

is it that it’s that way if it’s been in their family for decades?“ Gordon posed.

“Maybe they actually are good stewards.

“Right now, with the death tax, we kind of penalize people when their property‘s particularly valuable from an environmental or other standpoint.

People involved with the endangered species program have commented that the estate tax has been one of the worst things for certain species.

When property’s inherited, a family sometimes is forced to break it up to pay the tax, which is not good for habitat.”

state again will not receive about $1 billion in federal stimulus funding, according to Ruiz.

ISBE also recommended a 50 percent cut in hold-harm-

‘We can’t afford to shor tchange children.’

— Jesse Ruiz ISBE chairman

less funding, a measure created in the late 1990s when the state aid formula changed.

That provision prevented districts from receiving less state aid than they did in the 1997-98 fiscal year, but was meant to be temporary and end after a few years, according to ISBE.

DATEBOOK Jan. 25 Certified livestock manager and manure management workshop. 9:15 a.m. to 2 p.m. Effingham County Extension office, Effingham.

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

Illinois Tillage Seminar. 8 a.m. to 3:15 p.m. Pere Marquette Hotel, Peoria.

Registration deadline Jan. 19. For information call 815-395-5710.

Feb. 23-24 Illinois Farm Bureau Governmental Affairs Leadership Conference, Crowne Plaza, Springfield.

Contact your county Farm Bureau or go online to {www.ilfb.org}.

FarmWeek Page 3 Monday, January 18, 2010

AFBF

IFB pushes flood fighting efficiency, interstate uniformity

BY MARTIN ROSS FarmWeek

Illinois Farm Bureau last week attempted to set the stage for comprehensive floodplain management as well as the preventative/stopgap measures needed to minimize flood impacts until federal monies flow again.

During policy debate at last week’s American Farm Bureau Federation annual meeting, IFB leaders spearheaded efforts aimed at more uniform interstate flood prevention/flood fighting capabilities and a lead role for the U.S. Army Corps of Engineers in future flood fighting efforts.

“The challenge we face in these difficult economic times lies in trying to find the funds for a comprehensive plan and the work that needs to be done for the levee districts up and down the river system,” IFB Vice President Richard Guebert Jr. told FarmWeek at the Seattle meeting.

“The submittals we approved were a step forward in trying to achieve some of these goals, or at least little bits and pieces of it.

“If we can’t get the whole package, at least we can provide levee districts the means to make necessary repairs and work within the system today.”

IFB won support for a uniform, state-adopted federal floodplain standard allowing a one-foot rise in floodwater

height for flood protection projects on major rivers and other bodies bordered by two or more adjacent states.

Missouri currently allows a one-foot rise and Iowa a halffoot rise, while Illinois is restricted to an allowable 0.1 of a foot rise — Burnside delegate and IFB board member Terry Pope reported.

Individual state rises determine the level of flood fighting allowed within a region, and the disparity can result in increased damage on one side of a swollen river.

Because various agencies are involved in flood management efforts in various states, Guebert argued “a uniform standard we can all work with and under will make it much easier as we move forward” in flood control efforts.

IFB also gained AFBF support for federal regulatory changes that would require dewatering of ag land as part of flood recovery efforts.

Today, the Corps removes water from “what they consider to be valuable infrastructure,” Pope said.

However, “They do not consider agriculture valuable infrastructure,” Pope related. That view left a pumping station in his area submerged well after 2008 floodwaters receded, rendering crucial pump repairs impossible.

Delegates also approved Illinois’ recommendation that the

Restless in Seattle: minister seeks accord As U.S. farmers converged last week in Seattle, Siphiwe Mkhize recalled a far different gathering in the Northwest city 10 years ago.

As ag minister with South Africa’s Washington embassy, Mkhize laments the lack of substantive progress for the developing world since the tumultuous 1999 launch of the Doha Round of World Trade Organization (WTO) trade talks in Seattle.

“It’s been too long — we want to find a solution,” the ag attache told FarmWeek at the American Farm Bureau Federation annual meeting last week. “We want to see the negotiations concluded.”

Mkhize argued the U.S. must assume “a leadership role” in getting WTO talks back on track, and is anxiously awaiting U.S. Senate confirmation of chief U.S. negotiator Michael Punke, expected this month.

The minister urges the U.S. and the European Union (EU) to offer further concessions on their so-called “trade distorting” ag subsidies. He hopes negotiators this year can make major strides toward improved market access that will boost the exchange of South African and U.S. goods as well as spurring greater “south-south” trade between developing nations south of the Equator.

That’s as the U.S. and the EU seek movement toward import tariff reductions from South Africa as well as China and India.

Mkhize stresses the need for WTO resolution of key “phytosanitary” issues — purported health and safety concerns that limit imports of selected ag goods.

He hailed a recent resolution of a longstanding dispute between South African and Northwest U.S. apple growers, and suggested continued exchange of African and U.S. technical teams will help improve mutual market access. — Martin Ross

Illinois Farm Bureau Vice President Rich Guebert Jr., right, discusses one of a series of floodplain management/flood protection resolutions added to American Farm Bureau Federation (AFBF) 2010 policy last week in Seattle. Fellow Illinois AFBF delegate William Olthoff looks on. (Photo by Ken Kashian).

Corps coordinate all floodfighting efforts. Repairs are still needed in some areas after the 2008 flood in part due to questions about who among participating state and federal agencies “has the dollars, who does the work, and how the work gets done,” Guebert said.

While the Federal Emergency Management Agency (FEMA) is the “one with the dollars,” Guebert noted levee districts have developed a

closer working relationship with the Corps.

If new policy becomes reality, FEMA would “hold the purse” and distribute funds, but the Corps would lead necessary repairs following flood fighting efforts.

At the same time, IFB was wary of Iowa-sponsored provisions for a local, state, and/or federal voluntary easement program that would allow continued production but provide

payments to producers willing to accommodate temporary floodwater storage.

Carlyle delegate Darryl Brinkmann was concerned such a program could cause “chaos” for additional farmers, residents, and property owners served by private levees.

“We just don’t feel comfortable allowing some agency to turn water loose on our farmland and private property,” Guebert said.

Ag program spending again budgetary target?

Past farm bill co-author Charles Stenholm terms it “unrealistic” to expect indefinite continuation of “the same basic type of farm programs,” and believes direct payments may be at risk in 2012 farm bill debate.

Stenholm, a co-chairman Charles Stenholm of the nonprofit Committee for a Responsible Federal Budget who left Congress in 2005, anticipates increased scrutiny of ag spending this session.

Budget pressures raise the question of “how you justify a subsidy for corn ethanol and a direct payment, if you are a pork producer, a poultry producer, a dairyman.“ Congress may be forced to choose the subsidy “that does

the most good,” and that could prove production of “competitively priced” energy, Stenholm said.

Crop insurance likely will be “highly discussed,” with an eye toward improving the existing system and possible “innovative new ideas” for helping producers manage risk, he suggested.

While suggestions that Congress may target administrative funding for private federal crop insurance providers has sparked “a lot of consternation in the crop insurance industry,” Stenholm calls House Ag Chairman Collin Peterson’s plans for forthcoming hearings on the system — and how it is funded — are “right on target.”

He believes current insurance issues will be resolved as part of the 2010 budget process, without Peterson and Company being forced to prematurely reopen the 2008

farm bill. However, congressional budget reconciliation in 2011 will shape priorities and directions for the next farm bill.

“I think anyone would be living in a foreign outer world to not understand that the budget challenges for our country are going to be very severe. The idea agriculture could be exempted never has been true and will not be true next year. (Changes) will be forced on us because of the budget.“ Stenholm hopes economic stabilization will reduce demand for food assistance and thus potential pressure on farm-related spending, but dismisses the idea of separating farm and nutrition policies in future ag debate.

“You’re not going to feed the people of Africa without farmers and agriculture and technology,” he maintained. — Martin Ross

FarmWeek Page 4 Monday, January 18, 2010

AFBF

Stenholm: Cap and trade, EPA regs not either/or

BY MARTIN ROSS FarmWeek

Charles Stenholm doesn’t have a “better solution” to the perceived threat of global warming. However, neither does Congress nor the U.S. Environmental Protection Agency (EPA), he argues.

Stenholm, a former Democrat leader with the House Ag Committee and a Washington ag lobbyist, urges increased private and federal investment in greenhouse reduction technologies as a prelude to developing climate policies.

He fears jobs will exit the

United States “for the rest of the world” if Congress approves current greenhouse emissions cap-and-trade legislation expected to significantly increase consumer costs nationwide.

At the same time, he challenges EPA’s authority in issuing its recent greenhouse “endangerment finding,” a regulatory stage-setter seen by many as the sole alternative to climate legislation.

“I don’t think we’re at an either/or yet,” Stenholm told FarmWeek at the American Farm Bureau Federation‘s (AFBF) annual

meeting. “Either/or means that if you don’t do this, you’ve got a better solution.

I don’t think anybody has a better solution for CO2 right now, because of the lack of technology.“ According to AFBF regulatory specialist Rick Krause, any climate legislation expected to pass in 2010 must be “pretty much on record,” if not on its way to the White House, by March.

Krause reported Sens. Lindsey Graham (R-S.C.), Robert Kerry (D-Mass.), and Joseph Lieberman (I-Conn.) are still pushing a compromise bill

aimed at winning critics of the House’s stringent emissions cap plan, but suggested odds of the trio capturing 60 votes “are getting slimmer every day.“ EPA’s effort to move ahead with greenhouse regulation currently is a concern, he said.

The agency plans to regulate motor vehicle emissions by the end of March, setting the stage for a potential “regulatory cascade” including new livestock permitting and building standards.

Sen. Lisa Murkowski (RAlaska) is expected to introduce a measure which would

“disapprove” EPA’s endangerment finding, thereby preempting new greenhouse regulations under the federal Clean Air Act. Murkowski proposes an amendment to forthcoming federal debt ceiling legislation which similarly would block new greenhouse requirements.

Rep. Earl Pomeroy (DN.D.) also urges a halt to EPA’s greenhouse agenda. “He is a Democrat, which is a very positive development in terms of being able to get some bipartisan support,” Krause told FarmWeek.

AFBF

Farm Bureau members from across the U.S. signify their concerns about congressional cap-and-trade legislation on the American Farm Bureau Federation (AFBF) annual meeting exhibit floor in Seattle last week. As part of its Don’t Cap Our Future campaign, AFBF invited producers to send one of the bin of caps seen in the foreground to their federal representatives. (Photo by Ken Kashian).

FCA chairman: Farm Credit best left to ag oversight Ag lawmakers are better equipped than Congress’ financial committees to help the Farm Credit System and its regulators weather the “deep stresses” plaguing some borrowers, according to Leland Strom, Illinois’ chairman of the federal Farm Credit Administration (FCA).

As the House and Senate eye broad financial sector reforms, Strom seeks to keep preserve Farm Credit System/FCA oversight within House and Senate Ag Committees, where lawmakers better understand producer and ag economic issues.

Strom fears being “swept up in regulatory reform” with other more troubled institutions would result in “additional costs and burdens” for FCA’s farm borrowers. With Farm Bureau support, FCA recently persuaded the House to leave its ag oversight intact.

The Senate now must consider Farm Credit’s oversight status.

“This is a volatile industry,” Strom told FarmWeek at Illinois Farm Bureau‘s annual meeting breakfast at the American Farm Bureau Federation convention in Seattle. “But in this very deep financial and banking crisis, the current state of agriculture is still relatively good.

“We understand there are deep stresses in certain segments of the agricultural industry.

But when you have a cooperative lending system like the Farm Credit System, when you have boards of directors comprised of farmers

and ranchers who understand the dynamics of the volatility of agriculture, that seems like a good recipe for success.

And I think the jurisdiction of the agriculture committees can lead the Farm Credit System forward through these difficult times.”

In the mid-1980s, Congress reinforced the FCA’s role as an “arm’s length” regulator, granting new enforcement powers and setting down comprehensive “borrower’s rights” provisions.

A recent federal review judged those provisions “an industry-leading standard” for guiding lenders and their customers through stressful financial circumstances, Strom said.

He noted the system has accumulated $30 billion of capital to back its loan portfolio over the past 20 years. The system is in “a fairly strong position to weather a significant downturn,” he argued.

“Credit availability should remain good through this period,” he stated.

“A year ago, investors worldwide were pulling back from the public debt market, and the system had a period where it was having some difficulty issuing long-term debt, not because of problems with agriculture or the system, but because of the global retrenching of investors.

“We’re now seeing a pickup in interest in purchases of Farm Credit System debt securities.

We‘re returning to a more normal state,“ he said. — Martin Ross

Continued from page 1 Nelson nonetheless sees potential value in ag carbon incentives, especially under GHG regulations. He persuaded delegates to reject a move to replace AFBF “environmental incentives” policy with IFB’s sweeping resolution.

“I thought it would not be in the best interest of this organization to eliminate that policy as we talk about a voluntary carbon trading system,” Nelson related.

The IFB resolution also decried the U.S. Environmental Protection Agency’s (EPA) “threats to selectively regulate greenhouse gases” under the federal Clean Air Act. Unlike House proposals exempting ag from emissions caps, EPA’s GHG “endangerment ruling” would affect livestock producers.

The resolution noted “just how unsettled the science really is on climate change.“ Chris ‘Even if you accept the Horner of the Competitive Enterprise scenarios from those Institute told farmers who are promoting in Seattle climate these types of policies, change theories often neglect to consider nat- t h e y w o u l d h a v e a ural fluctuations in negligible effect on average world temperatemperature.’ tures documented since the Middle Ages.

Economist Robert — Robert Gordon Gordon of the nonHeritage Foundation profit Heritage Foundation noted a growing list of scientists “willing to question some of the catastrophic claims” powering proposed GHG regulation.

“Even if you accept the scenarios from those who are promoting these types of policies, they would have a negligible effect on temperature,” Gordon told FarmWeek. “And that assumes you buy that man is a big contributor to some sort of cataclysmic change in climate.”

Budget anxieties Meanwhile, despite reservations about higher taxes, delegates approved new fiscal policy provisions seeking graduated deficit reductions over the next decade through Social Security, Medicare/Medicaid, and other program spending “adjustments” and potential tax increases directed specifically at balancing the budget. Any deficit-reduction tax would be eliminated once budget-deficit goals were met.

Budget deficits “erode our ability to remain fiscally stable,” the policy stated. AFBF Deficit Task Force member John Hendricks is concerned about the impact that mounting foreignowned U.S. debt could have on national security when countries such as China eventually ask the U.S. to repay its loans.

“If we continue down the road with the deficit we have, we certainly will mortgage our children and grandchildren,” the Kentucky Farm Bureau vice president warned delegates.

Task force findings will be detailed in next week’s FarmWeek.

FarmWeek Page 5 Monday, January 18, 2010

AFBF

Stenholm predicts equine bill with ‘chance of passing’

BY MARTIN ROSS FarmWeek

As the consequences of a nationwide equine slaughter ban unfold, a former U.S. House Ag Committee leader reports the industry soon may saddle up for another go at Congress.

A federal General Accountability Office (GAO) report on the status of the U.S. horse industry, due to Congress in March, may help fuel a new push toward policies that grant producers and others options for or at least assistance in euthanizing old, ailing, or oth-

‘Who has to take the responsibility for a horse that’s turned loose on a community, on a country road, even in a semiurban community? The counties.’

— Charles Stenholm Former Texas congressman

erwise unwanted horses.

“Everyone who has a dog in that hunt should contact the GAO to tell them what’s really happening to the horse

industry,” urged former House Ag ranking Democrat Charlie Stenholm, a lobbyist who represented equine processors during their unsuc-

Backyard opposition back door for HSUS? A growing “not in my backyard” sentiment could provide a back door for groups such as the Humane Society of the United States (HSUS), an Indiana Farm Bureau spokesman warns.

Last summer, the state organization launched Champions of Animal Care, a splashy media campaign focused on county fairs and other high-profile activities that bring farmers and consumers together.

According to Bryan Whistler, a southwest Indiana Farm Bureau regional manager, the campaign is aimed at encouraging producers “to become more proactive than reactive” in addressing efforts led by the HSUS to restrict modern livestock management practices.

Whistler noted California approval of Proposition 2, which places stringent new limits on poultry, veal calf, and sow confinement, as well as Ohio‘s creation of a Livestock Care Standards Board which, with ag input, will help guide care of animals statewide.

“We’ve seen the writing on the wall,” he told FarmWeek at American Farm Bureau Federation‘s annual meeting.

Beyond lending support to the Ohio effort, Indiana Farm Bureau has encouraged volunteer testimony at local hearings affecting livestock siting.

“At a local level, we’ve had a lot of ‘not-inmy-backyard’-type issues — rural folks who are going to planning and zoning boards, challenging locations of confined animal feeding operations and those types of situations,” Whistler related.

“The only opposition we’ve had from activists so far at the state level was an attack on dog breeders — they were calling them ‘puppy mills.’ They are some of the finest operations you’ll ever see as far as raising puppies — a lot of our dog breeders are Amish folks in southern and northern Indiana.”

Thirteen Indiana counties currently do not have zoning laws, leaving producers open to attack. In one Southern Indiana county, residents sought a health ordinance aimed at blocking a hog operation. Farm Bureau helped ensure a healthy producer presence at a recent HSUShosted meeting in Columbus, a southern Indiana urban center. — Martin Ross

State offering expedited title service The secretary of state now offers a new expedited title service on vehicle titles, duplicate titles, corrected titles, and standard ownership changes for an additional $30.

Expedited title requests submitted by noon will be shipped UPS overnight that same day, while those made after noon will be shipped UPS overnight the next day. A $30 fee will be added to the normal transaction fee.

Titles will be sent to the address on the title, or to a dealer, remitter, or financial institution with interest in the vehicle.

To qualify for an expedited title, the surrendered title must be a current Illinois title or a new car title that has not been registered in any state. Transactions requiring special documentation (bonds, estate work,

etc.) are not eligible.

Applications by mail should be sent by express delivery service to: Expedited Title Service, Howlett Building, Room 311, 501 S. Second St., Springfield, Ill., 62756.

Applications for duplicate titles with no changes may be made by telephone if mileage

is not required to be recorded on the vehicle. Telephone requests must be paid by accepted credit card and will be delivered to the address on the title.

For more information or to apply via telephone, contact the secretary of state’s office at 217-524-7889.

Extension offering online Agronomy 101 for landowners University of Illinois Extension is offering, Agronomy 101 for Landowners, an online class targeted at landowners without a farming background. The registration deadline is Feb. 1.

Participants will interact with the instructor via e-mail and an online discussion board. They will receive lessons via e-mail and may complete the lessons at their own pace.

The first lesson will focus on soil types and productivity. The second will address soil fertility and testing. Other lessons will cover nitrogen, crop rotations, corn, and soybeans. The instructor is Dennis Bowman, U of I Extension crop systems educator.

The registration fee is $45 and the registration deadline is Feb. 1. Participants may register online at {web.extension.uiuc.edu/champaigncenter}.

cessful 2006 fight to preserve operations.

During the American Farm Bureau Federation annual meeting last week, Stenholm said equine interests would approach lawmakers only when armed with “a bill that has a chance of passing.” He believes that time is near, thanks largely to support generated by the United Organizations of the Horse (UOH).

The coalition has challenged celebrities for supporting the Humane Society of the United States and People for the Ethical Treatment of Animals. UOH founder Sue Wallis argues that “what happens to the (horse) carcass in terms of how it is disposed of or how it is utilized is entirely the right, prerogative, and responsibility of the owner.”

The problem of unwanted horses resulting from limited disposal options is gaining media attention and outcry from local officials who “understand unwanted horses are a little more expensive to

deal with than unwanted dogs and cats,“ Stenholm noted.

“Who has to take the responsibility for a horse that’s turned loose on a community, on a country road, even in a semi-urban community?“ he posed. “The counties.”

Stenholm said equine “protections” have dramatically reduced markets “for a horse someone else doesn’t want.”

Domestic economic losses related to slaughter prohibitions have “far exceeded” $2 billion, he said.

He challenged the constitutionality of a slaughter ban spearheaded by “a handful of very wealthy horse owners.”

The Senate OK’d GAO‘s study as a compromise to a proposed ban on shipping horses to Canada or Mexico for slaughter.

U.S. horse markets are being surveyed on current policy impacts. “Then there will be a major effort to get 218 (House) votes, 60 (Senate) votes, and a presidential signature,” Stenholm said.

Top national clinicians, educators on tap for Illinois Horse Fair Top national clinicians and equine educators will join 140 vendors at the annual Illinois Horse Fair March 5-7 at the Illinois State Fairgrounds, Springfield. The all-breed expo annually attracts more than 10,000 horsemen.

In addition to learning training techniques, Horse Fair attendees may view the horses-for-sale aisles, breed and sport demonstrations, stallion row and parade, and all-youth horse judging trials.

This year Tommie Turvey and his riding troop will perform Roman riding and chariot racing at 7:30 p.m. Friday and Saturday. Show admission is an extra cost.

Featured clinicians will include RFD-TV’s Julie Goodnight and Ryan Gingerich. Liz Graves will give a gaited riding clinic.

Times and topics for daily training sessions along with a complete event schedule will be posted online at {www.HorsemensCouncil.org}. Riders interested in having their horses participate in training clinics also will find details there.

Exhibits and 140 vendors will be located in the Livestock Center, Annex, Building 26, and the barns located east of the Livestock Center and across the street.

Fair hours will be Friday 1 to 7 p.m. Friday also has reduced admission of $5. Saturday hours are 9 a.m. to 7 p.m.; Sunday hours are 9 a.m. to 5 p.m.

Saturday or Sunday tickets cost for $12 for adults and $6 for children and seniors. Weekend passes are $20 for adults and $10 for children and seniors.

Admission tickets for Tommie Turvey shows cost $9 for adults and $6 for children and seniors. Advance tickets may be purchased online with a charge card at {www.HorsemensCouncil.org} or by calling the council office at 217-585-1600.

The fair needs volunteers for different activities, ranging from a few hours a day or the whole weekend. To volunteer, contact Cheryl DeMent by e-mail at paintfilly71@yahoo.com.

For information on exhibiting in booths, contact Joy Meierhans, horse fair manager, at 630-557-2575 or JM@TheMeierhans.com; in stallion row and parade, Lori Nelson, 217-306-4559, or lorinelsontraining@gmail.com; in breed-discipline demonstrations, Kat or Brent Hamer, 309432-3539, or fizz61760@yahoo.com.

FarmWeek Page 6 Monday, January 18, 2010

AFBF Kane County project trades ‘Grain for Groceries’

Farm contribution to hunger relief crucial

BY MARTIN ROSS FarmWeek

A 2009 Kane County Farm Bureau program highlighted the crucial grassroots role agriculture is playing in breaking what one food relief agency coordinator termed a growing “cycle of hunger and poverty” across America.

Kane County’s “Grain for Groceries” campaign last year raised more than $13,000 in cash, pledges, and in-kind

Chicago-based product sourcing representative with Feeding America (formerly America’s Second Harvest), told FarmWeek Grain for Groceries exemplifies a growing local trend fed by incentives under the 2008 farm bill.

Feeding America distributed some 3 billion pounds of food domestically last year, including nearly 400 million pounds of fruit and vegetables. Livestock, grain, rice, and other producers

Without the support of America’s first harvesters, we’d never be able to meet our needs.

“The beauty of the product we get is that it’s nutrient dense, it’s fresh. It’s teaching people how to eat right, so we can work not only on breaking the cycle of hunger and

poverty but also on combating obesity, diabetes, hypertension, so that we’re not putting a burden on our tax system through needed health care.”

The Kane County project yielded an outpouring of corn, soybean, wheat, and hay proceeds, the single exception

being one farmer’s in-kind egg donation. Producers selected the area pantry or bank to which their contribution would be directed.

The project also raised the visibility of the link between agriculture and the food supply.

‘Without the support of America’s first harvesters, we’d never be able to meet our needs.’

— E. Jane Hayden Feeding America

donations for a dozen local food pantries and the regional Northern Illinois Food Bank.

More than 40 farm families, ag businesses, and individuals contributed either a specific number of bushels of grain or an acreage share of their production for conversion into donated cash.

Kane County was recognized at last week’s American Farm Bureau Federation (AFBF) annual meeting in Seattle. E. Jane Hayden, a

have joined in the group’s effort, Hayden reported.

“We are finding more and more producers willing to dedicate an acre or two (of production) specifically to be donated to a local food bank,” she related at the AFBF meeting.

“USDA figures for poverty in the United States now place 46 million Americans at risk, so the need is greater than ever.

We’re extremely grateful for our partnership with Farm Bureau:

Steve Arnold, manager of Kane County Farm Bureau, discusses the county’s “Grain for Groceries” program with Rene Payne from Kentucky at the American Farm Bureau Federation annual meeting in Seattle as Bonnie White of Kane County looks on. The program was recognized at the AFBF meeting last week. (Photo by Ken Kashian)

Farmers have more seed treatment choices For the 2010 crop year, farmers will have more seed treatment choices for corn and soybeans than ever before, according to Mike Roegge, University of Illinois Extension crops educator with Adams and Brown counties.

The biggest question farmers will need to ask themselves is which, if any, treatments will benefit their crops, he said.

Roegge advised farmers to keep a couple of points in mind. First, seed treatments are not season-long protectants. At most, they will provide protection for a couple of weeks, he said.

Treatments are subject to degradation because they are water soluble, and they are applied to the seed. As roots and leaves emerge, there will be less protection for the entire plant, Roegge noted.

Second, treatments provide protection against specific insects, nematodes, and diseases. If that specific pest is in a farmer’s field, the farmer will receive some level of protection; however, if another untreated pest is present, the farmer won’t benefit from the treatment.

As soybean plant populations are reduced to lower, more economical levels (the per-acre cost of soybean seed in 2010 will be similar to the per-acre cost of corn seed from a few years ago) it becomes more important to protect each planted seed, Roegge pointed out.

There is overwhelming evidence that a 100,000-plant population at harvest is required to provide the optimum yield, Roegge said. The concern is that farmers don’t actually plant populations that low, but as seed prices increase, farmers realize the need to reduce seed expense

by lowering populations, he added.

Roegge advised farmers to consider which seed treatment products allow them to plant low populations and still achieve a good stand.

Soybean seed treatments offer choices for fungicide, insecticides, inoculants, and “plant health agents.”

Soybean growers are concerned about wet soil diseases, such as phytophthora, that may infect throughout the year and pythium that infects early in the season under cool, wet conditions. Metalaxyl protects against wet soil diseases, according to Roegge.

Other common diseases include rhizoctonia and fusarium. The strobilurins protect against those diseases, Roegge said, adding if growers have experienced those diseases in the past, they might consider using a seed protectant.

However, there is much more to disease protection than seed treatments, Roegge said. Some diseases are opportunistic and infect stressed plants; others require certain soil conditions before they infect plants.

“You really have to know the disease before you can determine how to protect against it,” he said.

Of course, extra cost is another consideration, Roegge noted. “The ultimate goal of any seed treatment should be the ease of mind that will allow you to reduce plant populations, enabling you to lower seeding costs,” he said.

Also, keep in mind treated seeds cannot be returned, so farmers need to be sure they order correctly. He recommended planting treated seed first to ensure it is all used.

FarmWeek Page 7 Monday, January 18, 2010

PRODUCTION

2009 a record year for corn, soybean production

BY DANIEL GRANT FarmWeek U.S. farmers dealt with a number of issues this growing season and still managed to produce the largest corn and soybean crops on record.

The USDA annual crop production report released last week showed U.S. farmers in 2009 harvested 13.15 billion bushels of corn and 3.36 billion bushels of soybeans.

Both are new records. U.S. corn production last season nipped the previous record of 13 billion bushels set in 2007 while 2009 soybean production increased 13 percent compared to a year ago.

“We’re still going to have some problems getting the final portion of the crop in the bin, but there is plenty of corn to begin with,” said Jerry Gidel, market analyst with North American Risk Management Services, during a teleconference hosted by the CME Group.

The national yield averages in 2009 also set new records at 165.2 bushels per acre for corn and 44 bushels per acre for beans.

Both final yield projections were up considerably from USDA’s August estimates of 159.5 bushels per acre for corn and 41.7 bushels for beans.

“We had indications pretty early on that USDA was too low with its yield forecast,” said Darrel Good, University of Illinois Extension marketing specialist. “I think farmers may be been too conservative with their yield estimates.”

The U of I projected the increased yield potential throughout the season using a model that accounts for factors such as planting dates, moisture, and temperature.

Initial yield projections were much lower in June, due to late planting, but “as we went through the season the yield forecasts continued to

Ethanol, Argentine beans, glut of wheat will influence markets

BY MARTIN ROSS FarmWeek

A potential federal boost to the ethanol market, South American forecasts, and an international outpouring of “wheat, wheat, wheat” will influence U.S. farm fortunes this season, according to American Farm Bureau Federation economic consultant Terry Francl.

While existing ethanol plants currently are running at an average 85 percent capacity, Francl reported production appears to be coming back on track as margins return.

The economy is expected to slowly rally, and plants sidelined by bankruptcy and financial woes will resume operation under new management, he suggested.

“We’ll probably see corn acreage expand to around the 90-million-acre level, up a little over 3 million acres from this past year,” Francl said. “Soybeans will probably hold. The big decline will be in the wheat area, down around 3 million to 4 million acres, but we may pick up a million acres in cotton.

“The other thing is, we’ve got about 2 million acres coming out of the Conservation Reserve Program. So we may pick up another 200,000-300,000 acres in corn and soybeans, maybe a little in the wheat, but that’s about it.”

Here’s how Francl sees 2010 market prospects shaping up: Corn: Two of the greatest potential demand factors heading into summer are export numbers, which currently are lagging “on the low end of expectations” and could droop even further; and the U.S. Environmental Protection Agency’s (EPA) decision on adoption of a standard ethanol gasoline blend rate between the current 10 percent and a proposed 15 percent ethanol. EPA is expected to rule on blend levels by June.

Meanwhile, feed consumption may rise as livestock crave additional calories to weather a frigid winter. Bottom line: Prices optimistically may trade in the $3.75-$4.25 per bushel range into spring, when uncertainty over crop/acreage bidding and planting prospects may boost corn into the $4.50-$4.75 zone. Assuming a normal fall crop, Francl sees prices backing off perhaps to a $3.75 bottom.

Soybeans: The South American crop is the wild card. Last year, an Argentine drought contributed to a 20 percent drop in production, but good rains have raised potential for trend-line or near-trend-line bean numbers and thus increased export pressure on global prices.

Francl anticipates near-term prices of about $9.50-$10.50 per bushel, with the spring corn-soybean “bidding war” adding a possible 25-50 cents. But a bountiful South American crop conceivably could knock prices back into the $8-$8.50 level by fall, he said.

Wheat: “There’s not much you can say, other than we’ve got wheat, wheat, wheat everywhere,” Francl related, noting bushels are flowing from the Black Sea region, the former Soviet Union, Argentina, Australia, and Canada. Thus, wheat likely will trade in the $5-$6 per bushel range, with pressures downward to a possible $4.50 by harvest.

increase” due to favorable moisture and temperature patterns, Good said.

Illinois farmers finished the 2009 season with final yield estimates of 175 bushels per acre for corn and 46 bushels per acre for beans.

The large crops are expected to weigh heavily on the markets. USDA last week increased ending stocks by 89 million bushels for corn and

76 million bushels for wheat.

Soybean stocks were reduced 10 million bushels from last month to 245 million bushels based on record exports (1.375 billion bushels). But a “wall of beans” coming from South America is expected to be a drag on the bean market in coming months, according to Brian Basting, market analyst with Advance Trading.

USDA last week projected

Brazil and Argentina this spring cumulatively will harvest a record soybean crop.

“These markets are giving us a strong signal we are not running out of these crops,” Basting said. “Risk management is very important for producers.”

On the flipside, end-users such as livestock producers should use any downtrend in crop prices to cover future feed needs, Basting added.

Winter wheat seedings drop to historic lows The winter wheat seedings estimate released think there is a lot yet to be determined as far as the last week by USDA confirmed last fall was one condition of this crop because of the extremely of the worst planting seasons for wheat in cold temperatures we had the past couple weeks,” modern history.

Brink said. “I suspect there will be some winter kill Nationwide, planted wheat acres declined by and there could be some abandoned acres.”

14 percent from the previous year Analysts last week predicted FarmWeekNow.com and, at 37.1 million acres, the many of the acres not planted See how world wheat supplies to wheat this season (the total area planted to winter wheat is are muting the reaction to fewer area nationwide is down 6.2 milthe smallest since 1913.

“This was one of the worst, U.S. wheat acres at FarmWeek- lion acres compared to the preif not the worst, (wheat planti- Now.com. vious year) will end up in corn, ng seasons) in the 30 years I’ve soybeans, and perhaps a few been farming,” said John Brink, a wheat grower more acres of cotton in the South. from Richview and president of the Illinois “We very likely will see more corn and bean Wheat Association. acres as a result,” said John Sanow, Telvent DTN “Only one other year was comparable in my grains analyst. area and that was 1984,” he said. “That year we The situation could add to supplies that are got virtually no wheat seeded.” somewhat burdensome. USDA last week increased Brink was able to seed only about one-third of corn ending stocks by 89 million bushels. the wheat acres he intended this season. The situMeanwhile, a 76-million-bushel increase in ation was even worse for others in the state. ending stocks of wheat in the U.S. could be a drag In fact, total winter wheat seedings in Illinois on the market despite the drop in planted acres.

(350,000 acres) are the lowest on record, according to “The price prospects for wheat, near-term, do the National Agricultural Statistics Service state office. not look all that promising,” Sanow said.

Seedings of the 2010 crop are down a half milUSDA last week projected farm prices for the lion acres from last year and 850,000 acres commarketing year will average $3.40 to $4 per bushel pared to the 2008 crop. for corn, $8.90 to $10.40 for soybeans, and $4.70 And the pickings could get even slimmer. “I to $5 for wheat. — Daniel Grant

FarmWeek Page 9 Monday, January 18, 2010

BIOENERGY

BP moving forward with cellulosic ethanol

BY KAY SHIPMAN FarmWeek

BP (British Petroleum) will start building one of the nation’s first commercial cellulosic ethanol plants this year, but one plant isn’t an industry, a BP executive cautioned last week.

Brian Conroy, strategy manager for BP Biofuels North America, said BP and its partner, Verenium Corp., will break ground for a $400 million cellulosic ethanol plant in

Highlands County, Fla. The joint venture, Vercipia Biofuels, has contracted with Lykes Bros Inc. for 20,000 Florida acres of energy cane.

“Is this the perfect solution? Probably not, but we needed to get the (cellulosic) industry started,” Conroy said at the University of Illinois Bioenergy Symposium last week.

Conroy described several challenges facing a cellulosic industry in the United States.

U of I research advancing bioenergy University of Illinois bioenergy research is advancing in many fields, literally.

“There’s a huge research team,” said Tom Voigt, U of I Extension biofuel specialist. Voigt discussed U of I research at the seventh annual Bioenergy Feedstocks Symposium in Urbana last week.

The British Petroleum’s (BP) Energy Bioscience Institute (EBI) is conducting field research on the U of I Energy Farm near Urbana and at sites in nine other states. In addition, U of I researchers are studying biomass crops in seven locations around Illinois.

“We’re looking at the agronomics because these biomass plants haven’t been studied for many years like corn and soybeans have,” Voigt added. “We’re trying to figure the best way to grow those crops.”

U of I plant geneticists and plant breeders are studying potential crop improvements. Chemists and microbiologists are researching how to break down the plant material.

A university research team is studying potential pests and diseases of biomass crops, while another group is studying the mechanical needs of producers and processors.

University lawyers and agricultural economists are studying ramifications of government policy and programs, and rural sociologists have interviewed farmers about changing from annual to perennial crops.

Another research group is studying environmental issues, such as gas emissions and other environmental impacts.

“Much of the research is being financed by BP. We’re very appreciative of the support,” Voigt said. The U of I and the University of California-Berkley are partners in BP’s EBI. “Our goal is to identify the (biomass) plants and establish management schemes, to find where we can optimize yields, to look for plants that require low inputs, and to have the least impact on the environment,” Voigt summarized. — Kay Shipman

Extension offering soil and water management workshop at 29 sites The future of agronomic soil and water management will be the focus of a Feb. 10 workshop sponsored by University of Illinois Extension.

The workshop will be held in 29 locations throughout the state.

The registration deadline is Feb. 5.

Presentations will be delivered via PowerPoint and teleconference from 9 a.m. to 2:25 p.m. Lunch will be provided.

“Those attending will learn about cap and trade issues, water and water quality issues, cover crops, and practical information on soil and water management,” said Duane Friend, U of I Extension natural resources educator.

Topics will include new conservation tillage tools and

the web soil survey.

Registration fee is $45 per person and includes lunch.

Extension units coordinating workshop locations are: Adams-Brown, Bureau, Calhoun, Cass, Christian, Coles, DeKalb, Effingham, and Ford-Iroquois.

Also: Fulton, Greene, Hamilton-Wayne-White, Henry-Stark, Jo Daviess-Carroll, Knox, Livingston, Macon, Macoupin, and Marshall-Putnam.

Also: Mason, McDonough, McLean, Mercer, Monroe, Montgomery, Morgan, Moultrie-Douglas, Pike, and Woodford.

To register, contact the Extension office at the location you plan to attend. For more information, e-mail Friend at friend@illinois.edu.

“BP is not an industry. It needs to be wider,” Conroy warned. “You can’t be a leader if there’s no one to follow. We need a lot of work to reduce risk and allow this industry to grow.”

BP expects the Vercipia plant to start producing 36 million gallons of ethanol annually in 2012. “Which means we have a lot of work to do this year,” Conroy quipped.

BP chose a Florida location for biofeedstock production because of the long, warm, and wet growing season.

The company also was able to work on a large enough scale with a single landowner to supply a plant, Conroy noted.

Meanwhile, Verenium Corp. is testing the cellulosic technology at a demonstration plant in Louisiana. Financing has been secured for the commercial-scale plant, Conroy said. Vercipia also intends to develop a second site in the Gulf Coast region.

Even with Vercipia’s launch, a U.S. cellulosic industry faces difficult challenges given the current financial market, Conroy pointed out. A cellulosic

‘We need a lot of work to reduce risk and allow this industry to grow.’

— Brian Conroy strategy manager BP Biofuels North America

industry needs assurance credit will be available.

“If you can’t borrow money, you can’t build,” Conroy said.

Cellulosic ventures are considered so risky that even the U.S. Department of Energy is more willing to invest in other types of renewable energy than cellulosic ventures, Conroy noted.

The cellulosic industry also

needs regulatory certainty for its product and transitional support as the industry begins using biomass as feedstock, Conroy said.

“There was a lot of good foresight in (renewable fuel) regulations, but then the market changed,” Conroy added.

“In 2010? I think this is a continuing moving target — the regulatory changes. The bankers are concerned about (credit) risk.”

BP is learning some of the nuts and bolts of using a biomass crop, according to Conroy.

Quality is one challenge.

“You get stones, fence posts, and animals in your feedstock,” he said.

A secure supply is another concern. “What if there is a fire from a lightning strike to your feedstock? We need to consider this,” Conroy said.

The company also is concerned about a possible biological attack that would endanger a homogeneous feedstock supply, he added.

FarmWeek Page 8 Monday, January 18, 2010

PRODUCTION

Quality issues may limit grain marketing

BY DANIEL GRANT FarmWeek

The grain market has been so volatile in recent years many farmers probably have become as accustomed to dealing with it as they have the weather in Illinois: If you don’t like it, wait five minutes, and it probably will change.

At least that is the hope of many farmers who currently have questionable grain stored on their farms.

Time is not on their side when it comes to holding out for better prices.

“A lot of farmers have an uneasiness about wanting to carry the (corn) crop on into spring because of quality issues,” said Dale Durchholz, AgriVisor market analyst.

Randy Holthaus, grain systems marketing manager for GROWMARK, said the situation developed due to major grain conditioning challenges last fall.

He believes much of the corn that already had low test weights and contained foreign material also may have gone into storage at high moisture levels.

The combination could lead to heavy spoilage losses if farmers don’t move the questionable corn prior to the spring thaw.

“We’ve got a sleeping dragon” lurking in many bins, Holthaus said. “If you’ve got questionable grain, don’t store it into warm weather. It won’t stay in condition,” he warned.

Holthaus stressed that farmers should monitor their grain on a weekly basis, particularly during times when the average air temperature goes through rapid change.

“Farmers have a bad habit of once the crop is in the bin and they think it’s cooled down, they tend to forget it,” Holthaus said.

That could prove particularly costly this year.

“You’ve got to be monitoring it constantly,” he said. “The biggest thing is to make sure it is fully aerated and cooled down.”

Drying poor-quality grain to 14 percent would help avoid storage problems, Holthaus noted in a recent FarmWeek column.

Stored grain needs to be cooled to 35 to 40 degrees for winter storage. Aeration cycles should be started anytime the average 24-hour temperature is 10 to 15 degrees cooler than the temperature of the grain, according to Holthaus.

Farmers also should check the surface of the grain for signs of crusting, wet, sticky, or frozen kernels.

On the marketing front, Durchholz said farmers should view corn stored at home and in commercial elevators as two different products.

“You probably should have a shorter rope on what’s stored at home (due to the quality concerns),” he said.

Grain conditions ‘recipe for problems’

BY KAY SHIPMAN FarmWeek

And you thought harvest was tough.

Farmers and elevator operators now face a daunting task of keeping that late-harvested grain in good condition.

“There’s moisture, damage, and fines issues — all a recipe for problems if it (stored grain) is not monitored and addressed,” Illinois Agriculture Director Tom Jennings told FarmWeek.

“It’s going to be a tough year to the extent there is high moisture and a lot of fines going into storage,” added Stuart Selinger, chief of the Illinois Department of Agriculture’s (IDOA) Bureau of Warehouses.

Plus, Illinois has the nation’s largest grain storage capacity at about 2.8 billion bushels — half on farms and half in commercial facilities.

Jennings urged farmers to monitor the condition of grain stored on the farm.

“Now is the time,” he said.

“It’s imperative these folks start addressing these issues.

“A lot of guys in their haste and desire to get the crop out, perhaps, put grain not in the best shape in the bin,” Jennings said.

Grain warehousemen also need to monitor grain condition, Selinger said.

Fortunately, IDOA launched a pilot electronic grain inventory program last year.

About 60 percent of licensed storage capacity is enrolled in the program, according to Selinger.

Participating elevator and warehouse operators take monthly measurements of grain and enter the data into a new computer program, dubbed ExamNet. “We want to inventory grain on at least a monthly basis for quantity of bushels, and this year, also check the quality,” Selinger said. “We’re anticipating

‘We’re anticipating more difficulties in storing this crop.’

— Stuart Selinger chief of IDOA Bureau of Warehouses

more difficulties in storing this crop.”

Selinger reminded farmers to be sure they have a receipt or scale ticket that denotes the quality of grain they deliver to an elevator.

“Be sure you are in agreement — at the time of delivery — with the grain quality factor (on the ticket),” Selinger said. Farmers are entitled to be compensated for the quality of the grain they delivered, he added.

If there is a disagreement about grain quality, “it’s too late after the grain’s in the bin,” Selinger concluded.

Managing stored grain A wet, late harvest has created grain storage conditions not encountered for many years.

The following tips were provided by the field crops team with Purdue University’s College of Agriculture: • Probe bins regularly, checking for hot spots and mold growth. Careful and regular monitoring of grain condition is essential.

• Fines generally will accumulate near the center of the bin or near bin walls. Concentrations of fines encourage mold and insect growth and inhibit air flow. Consider coring bins to alleviate airflow problems.

• Drying of soybeans will produce fewer splits if the air relative humidity is kept above 40 percent.

For example, if the outside air is 60 degrees Fahrenheit and the relative humidity is 80 percent, it should not be heated above 80 degrees.

Careful monitoring of bins is important to be sure excessive splits are not occurring, particularly during stirring. — Kay Shipman

FarmWeek Page 10 Monday, January 18, 2010

PRODUCTION

Cultural practices can limit crop diseases

BY DANIEL GRANT FarmWeek

Because of the wet conditions, plant diseases were a big issue last year for many specialty crop growers.

There were reports of tomato leaf blight, downey mildew that infected everything from cucumbers to basil fields in Northeastern Illinois, and Septoria leaf blight “was all over Illinois last year,” according to Mohammad Babadoost, plant pathologist at the University of Illinois.

Babadoost offered tips to

limit the development and spread of crop diseases during the recent Illinois Specialty Crops Conference in Springfield. The conference was hosted by the Illinois Specialty Growers Association.

Babadoost told growers there are a number of cultural practices to limit crop diseases that could save them the time and money required for a pesticide application.

“We have kind of a chemical mentality,” Babadoost said.

“But we should save (pesticide applications) as a last resort.”

The key to disease management is to start with resistant or less-susceptible crop varieties.

Growers should purchase their seed from a reliable source to make sure it is free of pathogens, he said.

Producers also should control weeds and get rid of plant debris after the cropping season.

“Septoria leaf blight will survive on plant debris in the field,” Babadoost said. “If you get rid of the debris in the field, you will reduce the

primary inoculum.”

Producers should consider keeping their equipment as clean as possible, particularly when they move from field to field, and they should avoid working wet fields.

“Wet conditions move pathogens from infected plants all over,” the plant pathologist said. “If you bring a pathogen to your field, that’s it.” The problem is there to stay.

If a crop is infected with a disease, Babadoost said it is critical growers get a proper

diagnosis of the problem before taking action.

Otherwise, a fungicide application may be ineffective.

“Different kinds of fungi require different kinds of fungicide,” he said. But, without a proper diagnosis of the problem, “we have a lot of chemicals sprayed without any conclusion.”

He also recommended growers rotate crops and avoid over-fertilizing plants as part of their overall plant disease management strategy.

Rocke family reacquires RMH Foods from Smithfield A 73-year-old food processing company in Central Illinois once again is owned by its founding family as the Rocke family recently reacquired Morton-based RMH Foods from Smithfield.

The company was founded in 1937 by the Jesse Rocke family as a local cus-

tom processor. However, from October 2001 through 2009, RMH Foods operated as a subsidiary of Smithfield Foods.

But that changed when Smithfield began to focus more on its core strategy of pork production and processing.

“ O u r n i ch e i s m a k i n g r e f r i g e r a t e d e n t r e e s,” s a i d Jo n a t h a n Ro cke, p r e s i dent and CEO of RMH Fo o d s. “ We we r e o n e o f the companies (Smithf i e l d ) wa s l o o k i n g t o s p i n o f f.”

A n d t h e Ro cke f a m i l y, along with a group of

i nve s t o r s, j u m p e d a t t h e o p p o r t u n i t y.

“We were able to work together and reacquire it locally,” Rocke said.

“We’re still very encouraged there is a niche for independent processors.”

RMH Foods makes fully cooked refrigerated entrees for retail sale, such as items for the Milano’s Italian Grille brand.

Rocke believes there are opportunities for the company to expand its product lines in the deli and food service areas.

In fact, with the U.S. still in the midst of difficult financial times, Rocke believes there are opportunities to expand the customer base for products offered by RMH Foods.

“In the food industry we’re experiencing what we call

consumers ‘trading down’ a little bit,” he said.

“Those who used to go to restaurants three to five times a week now are open more to shopping retail. We hope to provide an alternative to the restaurant experience.”

Some of the Milano’s Italian Grille products, for example, provide dinner for two people for just $6.99.

Overall, Rocke expects the transition of RMH Foods back to local ownership will be a smooth one.

Operation of RMH Foods and its sales structure remained fairly independent even when it was a subsidiary of Smithfield, Rocke said.

RMH Foods reportedly will continue to employ about 120 people. — Daniel Grant

USDA launches help desk for small meat processors The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) has opened a new small-plant help desk for operators of small and very small meat, poultry, and processed egg products businesses.

Processors will find a one-stop shop for help with agency requirements.

More than 90 percent of the 6,000 plants inspected by FSIS are small or very small. FSIS staff will assess callers’ requests and provide information and information materials.

If an answer is not readily available, the staff will research the issue and follow up with the caller.

Questions may be posed over the telephone or by e-mail.

The help desk is open from 8 a.m. to 4 p.m. Eastern Standard Time, Monday through Friday, excluding federal holidays.

To speak to a staff specialist, call 1-877-374-7435 or send an e-mail to InfoSource@fsis.usda.gov.

Hail atlas now online A new look at hail storms and their damage potential has been posted online. Stan Changnon, former chief of the Illinois State Water Survey, co-wrote “Hailstorms Across the Nation” with fellow scientists David Changnon and Steven Hilberg.

The atlas contains information that is relevant to farmers and agricultural firms, Changnon said.

To view the atlas, go online to {www.isws.illinois.edu/ pubdoc/CR/ISWSCR2009-12.pdf}.

FarmWeek Page 11 Monday, January 18, 2010

FarmWeek Page 12 Monday, January 18, 2010

EMERGING ISSUES

Livestock manure management workshops offered around state University of Illinois Extension is hosting four livestock manure management workshops in February and March to alleviate some of the worry and frustration of recordkeeping and developing plans.

Pre-registration is required. Each workshop will start at 8 a.m. and conclude about 4 p.m. Dates and locations are: • Feb. 5, U of I Extension Lee County, Amboy; • Feb. 16, U of I Extension Marion County, Salem; • Feb. 26, U of I Extension Champaign County, Champaign; and • March 5, 1st Farm Credit Services, Macomb.

Livestock producers and managers will receive handson assistance with the Illinois Manure Management Plan (IMMP) available at {www.IMMP.uiuc.edu}.

The website offers step-

by-step instructions for developing manure management plans that comply with the requirements of the Illinois Department of Agriculture, Illinois Natural Resources Conservation Service, and Illinois Environmental Protection Agency (IEPA).

IEPA recently finalized the last draft of the National Pollutant Discharge Elimination System (NPDES) permit for Concentrated Animal Feeding Operations.

“Illinois livestock producers can use the IMMP website as a recordkeeping tool or to develop a full-fledged manure management plan,” said Ted Funk, U of I Extension agricultural engineer.

Producers may use the IMMP website at no charge.

“IMMP fills the specific functional and regulatory needs of Illinois livestock producers,” Funk said.

Workshop par ticipants who are already using the IMMP plan website and have questions will receive assistance as well as those who would like to lear n how to use the system.

Funk advised par ticipants with questions to bring any relevant information to the workshop.

Producers interested in developing a plan may bring infor mation about their livestock facility.

Laptop computers that are Inter net-ready also may be brought.

To register, call 1-800345-6087. Pre-registration is required.

T he cost per attendee is $25, which includes lunch and handout materials.

For more information, contact Randy Fonner, U of I livestock specialist, at clmt@illinois.edu or 217-333-2611.

No ATVs on local roads Recently, questions have surfaced about farmers’ ability to operate all-terrain vehicles (ATV,) on local roads. Kevin Rund, Illinois Farm Bureau senior director of local government, explained the current situation.

May farmers still operate ATVs on local roads? If so, does the ATV have to be registered and insured?

“In a word, ‘No,” Rund said, in answer to the first question.

Last year, legislation took away farmers’ ability to operate ATVs on county and township roads for farming purposes starting Jan. 1 of this year, Rund said.

Likewise, farmers don’t have authority to operate Gator-type vehicles on those roads for farming purposes.

The problem stems from legislation designed to address the use of golf carts on roads. “Unfortunately, ATVs were entangled in the mess. Not only did farmers lose the ability to use ATVs on local roads, but they also lost the ability to even cross a state highway,” Rund added.

IFB is seeking legislation to correct the farm ATV problem in 2010 and to restore the authority for use of both ATVs and Gator-type vehicles on local roads for farming purposes, Rund said.

“Even if successful, that legislation is not likely to be effective until late summer or early fall, perhaps even as late as the beginning of next year,” he added.

Generally, ATVs purchased on or after Jan. 1, 1998, are required to be titled. There is no known requirement for registration, Rund said.

Ag scholarship digest IAA Foundation — The IAA Foundation is offering 57 scholarships ranging from $1,000 to $2,000 for high school seniors and college students.

Eligibility requirements and an application form can be found online at {www.iaafoundation.org}. Deadline to apply is Feb. 1.

See ad on page 10.

Crop Sciences Scholarship — Southern Illinois University Carbondale (SIUC) and the Illinois Soybean Association will offer a scholarship for students seeking a degree in crop, soil, and environmental management. The application deadline is Jan. 31 for scholarships to be used in fall 2010.

The scholarship may be worth as much as $10,000 over four years for incoming freshmen. Applications also are open to underclassmen and transfer students. Each recipient will have an opportunity for paid research experience in soybean production.

For more information or an application, contact Bryan Young, SIU professor and co-chairman of the Illinois Soybean Center, at bgyoung@siu.edu or 618-453-7679.

U of I Extension offering two tree fruit schools University of Illinois Extension will be hosting the commercial tree fr uit schools during Febr uary.

The program will be offered Feb. 2 from 8:30 a.m. to 3:55 p.m. in the Mt. Vernon Holiday Inn, and from 8:30 a.m. to 3:25 p.m.

Feb. 3 in the First Presbyterian Church Hall, Hardin.

Registration for both locations will start at 8 a.m.

Presenters will focus on production of apples and peaches and cover key orchard management topics.

Vendors will showcase their latest products and ser vices at both locations.

Topics include a grower’s evaluation of peach cultivars, proven cultural practices for apples, managing fungicide resistance, insec-

ticide updates, and degreeday models for insect pests.

Advance registration by Jan. 29 for the Mt. Vernon School is $20 per far m.

On-site registration is $30.

No meal is provided.

To register online, go to {http://web.extension.uiuc.edu/ edwardsvillecenter}.

For the Hardin school, the advance registration deadline is Jan. 29, and the fee is $20 per person, which includes lunch.

On-site registration is $30 person.

To register online, go to {http://web.extension.uiuc.edu/ calhounjersey/}.

The registration fee for both schools includes the “2010 Midwest Tree Fruit Spray Guide.”

For more information, contact Elizabeth Wahle, U of I Extension horticulture specialist, at 618-692-9434.

FarmWeek Page 13 Monday, January 18, 2010

FROM THE COUNTIES

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ASS-MORGAN — Dale Durchholz, senior market analyst with AgriVisor LLC, will be the speaker at a market outlook meeting at 7 p.m. Wednesday at the Morgan County Extension office, 104 N. Westgate, Jacksonville. Call the Farm Bureau Office for more information.

• Applications for the Cass-Morgan Farm Bureau Foundation scholarships are available at the Farm Bureau office, Cass and Morgan County Extension Service offices, high school agriculture departments, and guidance counselors’ offices.

Call the Farm Bureau office at 245-6833 for more information.

FFINGHAM — A planning night for the Legislative, Commodities and Marketing, and Local Affairs Action teams will be at 6:30 p.m. Tuesday, Jan. 26, at the Farm Bureau office.

Dinner will be served.

Members are invited to join one of the teams. Call the Farm Bureau office at 217342-2103 or e-mail ecfbmgr@consolidated.net by Wednesday for reservations or more information.

REENE — The annual meeting will be at 6 p.m. Thursday, Feb. 4, at the Knights of Columbus Hall, Carrollton. Tickets are $3 and are available at the Farm Bureau office or from directors. Deadline to purchase tickets is Friday, Jan. 29.

ANCOCK — The Young Leaders from West-Central Illinois are invited to attend a Young Leader event Friday and Saturday at Fun City, Burlington, Iowa. The outing includes an Agri-Quiz Bowl, ethanol plant tour, breakout sessions, indoor water park,

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arcade, laser tag, bowling, and more. Call the Farm Bureau office at 217-3573141 for more information.

• The Hancock County Soil and Water Conservation District will have an open house from 8 a.m. to 5 p.m.

Thursday. A board of directors election will be held and door prizes will be awarded.

• Join Hancock County Farm Bureau as a friend on Facebook.

ENRY — The Young Leaders will sponsor a “Who is the Next Generation of Family Farm Producers” seminar at 6:30 p.m. Tuesday, Jan. 26, at the St. Paul Lutheran Church, Orion. Ron Hanson, University of Nebraska-Lincoln, will be the speaker. Call the Farm Bureau office at 309937-2411 for reservations or more information.

ERSEY — The annual meeting will be at 6 p.m. Tuesday, Feb. 9, at the Elks Lodge, Jerseyville. Cost is $4, which includes dinner.

Tickets are available at the Farm Bureau office or from directors and must be purchased by Friday, Jan. 29.

NOX — Mark Frels, Illinois Farm Bureau executive director of member services and public relations, will be the speaker at the annual meeting at 9:30 a.m. Saturday at the Best Western Prairie Inn, Galesburg. The Knox County Farm Bureau Foundation silent auction will be held. A brunch buffet will be served.

Call the Farm Bureau office for more information.

• Applications are available for the Thomas Lincoln Memorial Scholarship and for the summer internship position at the Farm Bureau office. Deadline to return applications is Feb. 8. Call the Farm Bureau office at

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309-342-2036 for more information.

EE — The Lee, Ogle, and Whiteside County Farm Bureaus and Sauk Valley Bank will sponsor a family farms transition dinner program at 6 p.m. Wednesday, Jan. 27, at the Candlelight Inn, Sterling. Ron Hanson, University of Nebraska professor, will present a humorous and motivational program. Call the Farm Bureau office at 857-3531 or e-mail leecfb@comcast.net

by Friday for reservations or more information.

• The Lee County Farm Bureau Foundation has scholarships available for high school seniors who will pursue a major in an agricultural-related study. The scholarships range from $250 to $750, depending on availability of funds and financial need. The Larry J. Green Memorial Scholarship is for $300 and the Dean Henkel Memorial Scholarship is for $750. Deadline to return applications is Feb. 1.

Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net for an application or more information.

ONROE — Members are invited to meet primary election candidates at 7 p.m. Tuesday at the Monroe County Annex.

Call the Farm Bureau office for more information.

• An agricultural land management workshop will be from 8:30 a.m. to 12:30 p.m. Friday, Jan. 29, at the Monroe County Annex.

Topics will include landowner and hunter rights and laws; land management and honeysuckle dilemmas; USDA conservation programs; establishing wildlife food plots; and crop, fertilizer, and chemical updates.

Bring fire extinguishers to be

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checked. Lunch will be served. Call the Farm Bureau office at 939-6197 for reservations or more information.

IATT — The annual meeting will be at 7:30 a.m. Thursday at the Farm Bureau office. Paul Mariman will provide a market outlook. Breakfast will be served. Call the Farm Bureau office at 762-2128 by Tuesday for reservations or more information.

• The Piatt County Farm Bureau Foundation has scholarships available for high school seniors and college students through their junior year. Applicants must be a member or a dependent of a member of Piatt County Farm Bureau and plan to pursue a degree in an agricultural-related study. Scholarships are available at the Farm Bureau office or by emailing piattfb@piattfs.com.

OCK ISLAND — Stop by the Rock Island County Farm Bureau display at the Quad Cities Farm Show at the QCCA Expo Center. The show continues through Tuesday.

• The annual Overall Women Conference will be Thursday and Friday, Feb. 4-5, at the Isle Casino Hotel, Bettendorf, Iowa. The conference provides rural women with the opportunity to network and learn from each other and industry experts. Cyndi Young, Brownfield Ag News farm director and manager, will be the speaker. More information is available on the website {www.ucs.iastate.edu/mnet/o verallwomen/home.html} or by contacting your local county Extension office. Early-bird registration and special hotel room pricing will be available until Wednesday. Call 800262-0015 for more informa-

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tion or to register.

• A college fair will be held Thursday, Feb. 11, at the John Deere Pavilion, Moline. Students, parents, and class groups may meet admissions staff from 13 colleges and universities. Groups also may sign up for optional tours.

Groups are requested to register by calling the Rock Island County Extension office at 309-756-9978, ext. 10, or online ag {www.extension.uiuc.edu/rock island}.

ANGAMON — The annual meeting will be at 6 p.m. Saturday at the Northfield Center, Springfield. Rick Wills, retired GROWMARK employee, will be the speaker. The Sangamon County Farm Bureau Foundation will have its silent auction with items to bid on such as a John Deere Longaberger basket and Lincoln Land FS seed corn. Call the Farm Bureau office at 753-5200 for more information.

T. CLAIR — The annual meeting will be at 6:30 p.m. Friday at Albert’s Restaurant, Belleville. The Rev. Darryl Bolen will be the speaker.

Cost is $5. Call the Farm Bureau office at 618-2336800 for reservations or more information.

ERMILION — Members are invited to “Get Involved ... Make a Difference” as Farm Bureau plans programs for the year.

Check out the flyer inserted in today’s (Jan. 18) FarmWeek for planning session dates and details.

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“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 14 Monday, January 18, 2010

PROFITABILITY

It’s time to make seed selection decisions

BY MATT HYNES

It’s the time of year when decisions are being finalized for the 2010 planting season, and seed selection is one of the most important.

Seed selection most likely will drive other very important decisions such as which herbicide, fungicide, and Matt Hynes insecticide to use; the type and rate of plant food; and what rate to plant the crop.

So how do you select the

hybrids and varieties that you will use? Do you look at last year’s performance? Do you evaluate multiple years of data?

What kind of growing season do you think we will have this year? Will it be cool and wet, hot and dry? Or will it be normal — whatever that is?

My experience has been that in many cases we only remember last year. Let’s consider what happened last year. It was one of the coolest and wettest summers on record.

We experienced “Wisconsin weather” as far south as Inter-

state 70 that brought on white mold in soybeans as far south as Menard County, soybean aphids in Southern Illinois and diplodia in corn like we have not seen in a long time.

The cool wet conditions also affected the amount of corn rootworm pressure — less than normal. These were not brought on by the hybrids or varieties planted, but were a result of what “Mother Nature” gave us.

The ultimate goal of seed selection is maximizing productivity per acre, and that goal can only be met with a careful analysis of many factors. Soil type, fertility,

tillage practices, weed pressures, and grower preferences all play an important role in finding the best seed for each field.

The second most important factor is matching the genetics of the hybrids or varieties to each field. One of the best ways to achieve this is through looking at multiple locations and multiple-year data.

This gives you the best chance of seeing how those genetics perform under different weather patterns and conditions.

Wide area data are much more important than very spe-

cific, very local information when evaluating products to select for the fields on your farm.

It really comes down to working with a seed supplier who understands your entire operation, and there is no one better to help you than your local FS crop specialist.

He has the expertise, knowledge, and training to assist you in making that all-important seed decision to help you maximize your productivity.

Matt Hynes is FS Seed sales and marketing manager. His e-mail address is mhynes@growmark.com.

U.S. fuel prices on the rise; diesel nears $3-mark

BY DANIEL GRANT FarmWeek

Farmers who haven’t done so may want to consider prepricing or forward-pricing energy-related products for the 2010 growing season.

FarmWeekNow.com Check the latest retail trends on fuel and fertilizer prices at FarmWeekNow.com.

The price of fuel and fertilizer likely will increase in coming months, according to David Asbridge, president and senior economist of NPK Fertilizer Advisory Ser-

vice in Chesterfield, Mo. “I think we probably will see some increase in fuel prices moving forward,” Asbridge told FarmWeek last week.

Fuel prices nationwide continued to creep toward the $3 mark and as of the first of last week averaged $2.75 per gallon for regular gasoline (up 97 cents from last year) and $2.88 per gallon for diesel fuel (up 57 cents from last year).

The increase in fuel prices was due in large part to a runup in crude oil prices, which reportedly jumped 20 percent in the past month on the New York Mercantile Exchange.

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 $37.54-$48.00 $45.42 $50.00-$51.00 $50.11 n/a n/a This Week Last Week 41,563 24,846 *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 $66.71 $64.72 $49.37 $47.89

(Thursday’s price) Steers Heifers

Prv. week $84.27 $84.29

Change 0.04 0.21

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 96.79 94.90 1.89

Lamb prices Confirmed lamb and sheep sales This week 638 Last week 868 Last year 568 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $110. Good and choice 1-2: 60-90 lbs., $130-$140.

Slaughter Ewes: Utility and good 1-3: $55-$57. Cull and utility 1-2: $55.

Export inspections (Million bushels)

Week ending Soybeans Wheat 01-07-10 41.0 11.0 12-31-09 37.1 10.1 Last year 27.0 20.3 Season total 787.4 500.2 Previous season total 552.8 690.2 USDA projected total 1340 875 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

the Midwest,” Asbridge said.

A run-up in natural gas prices shouldn’t have an immediate impact on fertilizer prices.

However, the urea, phosphate, and anhydrous ammonia market prices have “room for growth” in coming months, according to Asbridge.

The economist predicted U.S. farmers may plant an additional 2 million to 2.5 million acres of corn this spring as win-

ter wheat seedings for this season are the lowest since 1913.

“The demand base is building, and it’s putting pressure on (fertilizer) prices to go up.”

Asbridge recommended farmers consider pre-pricing or forward-pricing energyrelated inputs to limit their risk of upward price swings.

Farmers can get tips from the advisory service online at {www.npkfas.com}.

Maximizing soy yields starts with variety selection

Change 1.99 1.47

USDA five-state area slaughter cattle price This week $84.31 $84.50

Crude oil prices, which peaked last week at $82.52 per barrel before trending slightly lower, are more than double what they were at the same time last year.

The Energy Information Administration (EIA) recently projected crude oil prices this year could average $76 per barrel.

And rising oil prices are expected to contribute to a jump of 48 cents per gallon for regular gas and 50 cents per gallon for diesel in average fuel prices this year compared to last year.

Meanwhile, natural gas prices likely will rise as a result of the harsh winter. EIA recently projected natural gas prices this year will average $4.62 per thousand cubic feet compared to $3.95 in 2009.

“I think natural gas prices will continue to go up, particularly with the horrendously cold temperatures we’ve had in

Corn 20.6 29.1 21.9 563.7 562.8 2050

Farmers can make a big impact on their potential soybean yields before they ever put a seed in the ground.

“Variety selection is the most important factor to start with” to maximize yields, Vince Davis, University of Illinois Extension soybean specialist, said during the U of I Corn and Soybean Classic in Bloomington. “Probably more so than ever due to the high cost of seed,” he added.

Farmers should try to match seed genetics with each of their fields.

University variety trial data are available at online at {http:vt.cropsci.illinois.edu/soybean.html}.

Farmers also can compare performance data on hundreds of soybean varieties across multiple seasons at the Varietal Information Program for Soybeans (VIPS) website {www.vipsoybeans.org}.

“Illinois soybean farmers have several tools at their fingertips that can be used to evaluate variety performance,” said Ron Moore, chairman of the Illinois Soybean Association (ISA).

Farmers, however, should not make variety selections based only on results from 2008 and

2009, which were abnormally wet seasons.

“The biggest factor for 2010 seed selection is to not get overly emotional about what you saw in 2008 or 2009,” Davis said. “Seed selection decisions should not be based solely on problems with white mold, aphids, or sudden death syndrome. Those problems may overshadow what were truly the best-performing varieties.”

Despite weather and disease problems, Illinois farmers still managed to produce soybean crops that averaged 46 bushels per acre last year and 47 bushels per acre in 2008 compared to 43.5 bushels per acre in 2007.

Overall, soybean yields in Illinois from 1950 through 2005 increased by an average of 1.1 percent per year, Davis reported.

But researchers hope to boost that total in the future. ISA this year will host its first yield challenge in an effort to generate data around the state vital to boosting soy yields.

Registration for the soy yield challenge will be open until April 1. More information about the program is available at {www.soyyieldchallenge.com} or by calling ISA at 309-663-7692. — Daniel Grant

FarmWeek Page 15 Monday, January 18, 2010

PROFITABILITY Corn Strategy

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

USDA report a game changer Every once in awhile, a USDA report comes along that dramatically changes the parameters of the playing field. Last week’s report may have been one of those.

Instead of a slightly smaller corn production and ending stocks projections, USDA raised its production estimate and boosted the ending stocks projection even though it raised demand expectations as well.

Many are questioning where USDA found the additional corn bushels. It is unusual for the January corn yield and production estimates to increase following reductions in the November reports. However, this is a highly unusual year. And most would agree that yields held up better than expected even though this was a recordlate harvest.

Some have voiced the opinion USDA eventually might have to lower its forecast because of this year’s poor test weights. But, USDA does account for test weights in developing its yield forecasts.

In recent weeks, there had been talk the 1.6-billion-bushel corn carryout was not especially burdensome with the need for additional acres next year to meet demand for ethanol.

Basis charts

The 1.764-billion-bushel ending stocks projection, coupled with the 6.3-million-acre reduction in winter wheat plantings, has dashed that idea from the minds of traders and analysts.

In addition, the increase in wheat ending stocks to 976 million bushels suggests wheat may become more competitive in the feed bunk to use up some of that inventory. To put ending stocks in perspective, they’re more than we grind for flour in a marketing year, putting the burden on smaller production or larger exports to trim the supply.

World wheat stocks were increased another 4.7 million metric tons (173 million bushels), increasing chances of seeing wheat feeding pick up in the world, which could subdue U.S. corn exports even more.

Just this past week, Wilmington LLC, a grain merchant owned by southeastern livestock companies, was said to have bought Brazilian feed wheat to import into the U.S. Soybean numbers were the lone bright spot on the latest USDA reports, and even then may only be a dull glow if South American crops end up as big as currently forecast.

Even though the crop was forecast to be 42 million bushels larger than in November, necessary upward adjustments in demand trimmed the ending stocks. One could term the 245-million-bushel ending stocks as only slightly comfortable, but not tight.

However, the Dec. 1 stocks were well below estimates, casting some doubt as to whether the crop is as big as projected. If not, it puts additional burden on the need for large South American crops to prevent our stocks from getting too tight again this summer. But recent Chinese economic changes raise the possibility their breakneck demand for soybeans might slow down.

Again, the January reports were “game changers.” Adjust your marketing attitudes and strategies accordingly.

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

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Cents per bu.

2009 crop: Corn prices are poised to make a 20-week cycle low. The emotions of the post-report decline tend to suggest the break may have temporarily exhausted itself.

Increase old-crop sales to 50 percent if March rallies to $3.99. We may boost those sales even more if that occurs; check the Cash Strategist Hotline frequently. Do not plan to store corn into spring unless you are confident of its quality.

2010 crop: If December futures rebound to $4.35, make a 20 percent new-crop sale. Check the Cash Strategist Hotline daily as we could adjust that target down at any time.

Fundamentals: The January USDA report changed the fundamental picture dramatically for this marketing year. The extra bushels will make it difficult for corn prices to rally much, unless something else helps prices move up. News that a southeastern group is importing feed wheat adds to negative psychology.

Soybean Strategy 2009 crop: Chinese moves to slow their rate of economic growth and continued good weather in South America have turned the attitude more defensive in the soybean complex. The USDA report was a factor, but not as much as the other two. Boost soybean sales to 50 percent if March hits $10.05. That price and/or quantity could change at any time; check the Cash Strategist Hotline frequently.

2010 crop: Leave an order to make a 10 percent sale if November futures reach $9.95. Check the Cash Strategist Hotline occasionally for possible changes.

Fundamentals: Unlike wheat and corn, the new USDA numbers didn’t have negative overtones for the soybean complex. The dilemma the soybean complex faces is the threat of a sharp reduction in demand when South American supplies become available. Even though weather has been generally good, the key part of the South

American growing season still lies ahead. A large crop is likely, but is far from secure.

Wheat Strategy 2009 crop: The dynamics of the market were changed following the release of the USDA report. Still, downside risk below current levels should be limited. We anticipate a rebound as the 20week cycle low should be bottoming. Plan on making a 10 percent sale if March futures hit $5.59, bringing total sales up to 90 percent.

2010 crop: Use a rally to

$5.83 on the Chicago July contract to make an initial 25 percent sale. Check the Cash Strategist Hotline daily as this target could be adjusted at anytime.

Fundamentals: The USDA report was mixed regarding wheat. The big increase in the 2009/2010 ending stocks to 976 million bushels was a negative development. An increase in world stocks added to the negative picture. However, some of the negative impact was counteracted by the unexpected 6.3million-acre decline in winter wheat plantings to 37.1 million.

FarmWeek Page 16 Monday, January 18, 2010

PERSPECTIVES

NEEDED:

A good dose of judgment The other day, I went to the grocery store for beef tenderloin. Only one kind was available. A sticker on the package advertised that the meat was “antibiotic free.”

It wanted to make me feel like a health-conscious consumer. In other words, it was a sales ploy.

As a cattle rancher, however, I know beef. This supposedly special meat almost certainly wasn’t any better than the “ordinary” beef. The big difference was the price, which was about $5 per pound higher than beef tenderloin should have been.

This experience may provide a glimpse of the costly future of food — at least if a few members of Congress have their way. Congresswoman Louise Slaughter (D-NY) has proposed CAROL KEISER legislation to ban a variety of common antibiotics in farm animals.

At last count, her bill had nearly a hundred co-sponsors. A collection of advocacy groups has lined up behind it, and the White House has indicated its possible support.

But a new ban on antibiotics won’t improve anybody’s health. It may even make us sick.

Slaughter’s goal is worthy enough: She wants to guarantee the continuing effectiveness of antibiotic drugs in people. They are a vital tool of medicine, after all. Their job is to kill or inhibit the growth of harmful bacteria. Doctors prescribe them to treat infections.

Yet sometimes too much of a good thing can be a bad thing: The overuse of antibiotics allows bacteria to build up resistance. Then the drugs are less able to prevent disease.

When it comes to antibiotics, we’ve come a long way in the livestock industry. Just as medicine has improved over time, so has our understanding of how to make the most of these drugs as we raise livestock.

Nowadays, we don’t use antibiotics indiscriminately. We use them only when they’re truly needed —

and that usually means to treat specific problems in individual animals.

Most cattle don’t receive any antibiotics at all. So even if your beef doesn’t carry a label that says “antibiotic free,” there’s a very good chance that it’s antibiotic free anyway.

You just won’t pay “antibiotic free” prices for it.

Even so, we shouldn’t have to act as if antibiotics are toxic.

There’s nothing wrong with supplying antibiotics to farm animals.

It makes them healthier in life — and, therefore, healthier later on, for consumers.

Marie Bulgin, a veterinarian at the University of Idaho, recently shared the story of a sheep raiser who thought it was smart to quit using antibiotics — apparently so he could slap those special stickers on his lamb chops.

“The only problem was ... the animals he was taking in to have butchered were small, thin, and scouring, because they had been severely affected by coccidiosis,” she said. (Coccidiosis is the disease caused by coccidia, a single-celled intestinal bacterium.)

Maybe those “antibiotic free” stickers also should include a warning label about bacterial infections.

When producers don’t use antibiotics, animals get sick. It hardly needs to be said that sick animals shouldn’t enter the human food chain.

In the 1990s, Denmark had a debate over antibiotics similar to the one we’re wrestling with in the United States right now. Denmark decided to prohibit low-level antibiotics in farm animals on the grounds

that this would improve human health.

A decade later, the data don’t back up this claim.

The incidence of foodborne illness hasn’t budged, according to John Waddell, a Nebraska veterinarian who has crunched the numbers. (It actually has gone up slightly, though it tracks per-capita population trends.) What the ban has done, however, is drive thousands of Danish pig farmers out of business and raised the cost of pork for consumers.

Maybe this is what Shakespeare meant when he wrote his immortal words: “Something is rotten in the state of Denmark.”

Let’s contain the rot. Just as antibiotics prevent the spread of bacterial diseases, we should apply a dose of good judgment to this discussion. The alternative is to slap stickers on the foreheads of politicians: “Commonsense free.”

Carol Keiser owns and manages cattle feeding operations in Western Illinois, Kansas, and Nebraska. She is a Truth About Trade & Technology board member and may be contacted at {www.truthabouttrade.org}.

Estate tax an onerous burden for family farms, ranches Ask farmers or ranchers to tell you the greatest joys of their chosen calling and being close to the land, knowing that their work makes a difference and experiencing the fruits of their labor at harvest will all top the list.

JOHN HART But the greatest joy guest may well be columnist the assurance that their farming and ranching operation will be preserved for future generations.

Unfortunately, the federal estate tax does much to steal the joy of keeping the farm in the family.

Estate taxes are especially harmful to farmers and ranchers because their businesses are capital-intensive with a high concentration of assets tied up in land, buildings, and equipment.

Estate taxes tend to be more onerous for farms than other small businesses because 80 percent of farm and ranch assets are land-based.

When estate taxes exceed cash and other liquid assets on hand, surviving family members may be forced to sell land, buildings, or equipment needed to keep the business operating.

This has a multiplier effect because rural communities and the businesses they support also suffer when farms and ranches downsize or disappear.

Moreover, farmland close to urban centers often is lost forever to development when estate taxes force farm families to sell off land to pay taxes.

On Jan. 1, the estate tax expired for one year and one year only.

On Jan. 1, 2011, unless Congress acts, the estate tax will return with a vengeance and will carry an exceedingly low $1 million exemption.

Anything above $1 million will be taxed at 55 percent. This will harm most family farming and ranching operations.

There’s a joke going around that if you want to avoid the “death tax,” you better get your dying done before midnight on Dec. 31.

The talk on Capitol Hill is that the Senate will take action on estate tax reform early this year. Before going home for the Christmas recess, the House passed a permanent extension of the estate tax at 2009 rates, which carries a $3.5 million exemption for individuals and $7 million for couples, while taxing the rest of the value of the estate at 45 percent.

But the Senate, bogged down by the health care bill, failed to take any action on estate tax legislation as it wrapped up its business in 2009.

Farm Bureau backs permanent repeal of federal estate taxes. Until permanent repeal is achieved, Farm Bureau supports an exemption of $5 million per person, indexed for inflation.

There are many reasons why the estate tax is unfair. It amounts to double taxation because the income is taxed first when it is earned and again when it is transferred to heirs. Eliminating the estate tax will encourage farmers and ranchers to keep the businesses in the family.

By eliminating the estate tax, farm families will know that their operations will

remain in the family, continuing the mission of providing food, fuel, or fiber for America and the world.

It would be a travesty if the next generation was forced to abandon the farm just to pay the taxes.

John Hart is director of news services for the American Farm Bureau Federation. His e-mail address is johnh@fb.org.

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