BUNGE NORTH AMERICA plans to stop processing soybeans at its plant in Danville, but that should have little impact on a neighboring biodiesel plant. ..................................2
FARM BUREAU MEMBERS were assured last week that the state is sensitive to the need for rail crossings in rural areas as it develops a high-speed rail system. ..........3
WITH THE APPARENT failure of last week’s bipartisan health care “summit,” health debate is largely where it has been for two months — in the Senate’s court. ....................4
Monday, March 1, 2010
Two sections Volume 38, No. 9
Scientist offers inside view on Pew livestock report BY KAY SHIPMAN FarmWeek
Positive projections for the livestock industry were offered but fell through the rhetorical cracks of a Pew Commission report on animal agriculture, according to an animal scientist who spoke at last week’s Governmental Affairs Leadership Conference in Springfield. Leonard Bull, a retired North Carolina State professor, was one of four researchers who wrote a technical report on liveLeonard Bull stock waste. That report and seven others were written to supply scientific background information for a comprehensive report sponsored by the Pew Charitable Trusts and Johns Hopkins Bloomberg School of Public Health. However, the final report, “Putting Meat on the Table: Industrial Farm Production in America,” included several controversial recommenda-
tions that weren’t based on information provided by the livestock waste report, Bull said. That technical report is online at {www.ncifap.org/reports/}. Instead, most of the final report’s recommendations focused on public health, including several dealing with antibiotic use in livestock production, Bull said. Much of the report was negative toward animal agriculture. “The Pew group is still active,” Bull said. He speculated some members have an agenda against large-scale commercial livestock production. For example, CBS anchor Katie Couric interviewed a Pew representative about livestock production and antibiotic use, he noted. Bull encouraged farmers to read the technical reports, which contain valuable information, he said. Bull said livestock production as it currently exists should not be expected to stop until perfect solutions are found to address perceived See Scientist, page 3
THE CHORES GO ON
No matter the weather, cattle feeding chores don’t stop for cattlemen such as Tom Moser of rural Galena in Jo Daviess County. He has 156 Angus cross cows and 150 feeder cattle that he must feed daily. He is hoping for 156 calves to be born this spring. Moser operates a calf-to-finish operation in addition to growing corn and hay that he uses for feed. He farms with help from his wife, Courtney, and his father-in-law, Larry Lomax, a retired farmer. (Photo by Ken Kashian. Additional photos from Kashian’s trip last week to Northern Illinois appear at {www.ilfb.org}. Click on Ken Kashian’s Photo Gallery.)
‘Signal’ from Obama sought to move Cuba reforms BY MARTIN ROSS FarmWeek
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Advocates of expanded Cuban trade and travel liberalization legislation are seeking a clear signal from the president and support from a few key lawmakers. House Ag Committee Chairman Collin Peterson (D-
Minn.) last week introduced a measure aimed at expanding U.S. ag exports as well as travel to Cuba. The bipartisan Travel Restriction Reform and Export Enhancement Act has more than 30 co-sponsors, including a scattering of Illinois congressmen. The bill joins existing measures confined to expanding allowable travel between the U.S. and the Communist nation. Through Peterson’s proposal, “the United States will be able to export more food for Cubans to eat,” according to the Latin America Working Group (LAWG). Beyond basic “beans and chicken parts and rice,” U.S. farmers could sell to the underproducing nation, LAWG senior associate Mavis Anderson told FarmWeek, the measure would help the U.S. carve out a high-value piece of an expanding Cuban tourist trade. The bill would allow for direct payment for U.S. goods between Cuban and U.S. banks,
rather than through a third country as is now required, thus saving fees to financial intermediaries and time involved in
legal claims registered against Cuba,” Anderson said. “The Cubans can lose a whole shipment after having paid for it.
new day in our relationship with Cuba.” While some “traditional hard-liners” remain vocal about what they see as conces-
‘ Our mix of commodities and processed products, our ability to send bulk shipments down the Mississippi River to the Gulf of Mexico, and our willingness to travel to Cuba to foster business and personal relationships make this a worthwhile endeavor.’ — Philip Nelson Illinois Farm Bureau president, in a letter to Illinois congressional delegates supporting the Peterson bill
completing transactions and helping make U.S. exports more competitive. And it would extend to Cuba the same “cashin-advance” policies applied to all other U.S. trading partners. Peterson seeks to allow payment and title transfer for U.S. goods before they are offloaded in Cuba, rather than before they are shipped. “If title transfers while product is still in a U.S. port, it’s subject to being confiscated by people in the U.S. who have
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They’re not going to buy under those circumstances.” In 2008, more than $134 million in U.S. soy products were exported to Cuba, but the American Soybean Association argues sales volume would increase under Peterson’s proposal, given that U.S. suppliers can reach the three major Cuban ports “in a matter of one day or less, compared to 25 days from Brazil.” LAWG is seeking a signal that the president “is open to a
sions to Castro’s Cuba, especially in south Florida, Anderson sees a shift among CubanAmericans “toward engagement” with Cuba. But she noted House Foreign Affairs Ranking Republican Rep. Ileana Ros-Lehtinen (R-Fla.) remains “one of the loud voices from Florida,” and her group hopes to garner support from committee members such as Illinois’ Donald Manzullo, an Egan Republican.
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FarmWeek Page 2 Monday, March 1, 2010
Quick Takes S TA T E B U D G E T P R O P O S A L N O W ONLINE — Gov. Pat Quinn posted general budget information online last week, fulfilling a legislative requirement. The new budget website is {www2.illinois.gov/budget/Pages/default.aspx}. Quinn was to have delivered his budget message on Feb. 17, but the General Assembly gave him until March 10 as long as he posted general budget information online. In the online posting, Quinn continued to propose an increase in the state income tax and advocated cuts, especially in education funding, to address the state’s nearly $13 billion deficit. In addition to reviewing the proposed budget, the public may post comments online. ‘MIDWEST MADOFF’ RECEIVES SENTENCE — A Missouri woman last week was sentenced to nine years in prison after pleading guilty to what reportedly was the largest agricultural fraud in that state’s history. Cathy Gieseker, 45, Martinsburg, Mo., swindled 179 farmers out of more than $27 million, the St. Louis Post Dispatch reported. She pleaded guilty in November and last week in a St. Louis federal court received her sentence — nine years in prison for a single mail fraud charge. Gieseker claimed to have a special arrangement with Archer Daniels Midland that allowed her to broker crops for premium prices. But officials said she had no such deal and instead sold farmers’ grain and used a portion of the money to pay some of her initial customers as part of a classic pyramid scheme. District Judge Charles Shaw referred to her as the “Midwest Madoff,” in reference to Wall Street con man Bernie Madoff who stole billions from investors in what has been described as the largest Ponzi scheme in U.S. history. DISASTER AID COMING? — The Congressional Budget Office Friday was “scoring” the potential impact of an ag disaster assistance plan under consideration for a major Senate package possibly up for debate this week. The bill, a follow-up to initial Senate jobs legislation, is expected to include a number of federal tax “extenders,” possibly including the recently expired biodiesel blenders tax credit. The package also may offer disaster aid to producers affected by last year’s adverse weather conditions and late harvest.
(ISSN0197-6680) Vol. 38 No. 9
March 1, 2010
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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MARKETS
Congress’ inaction, not Bunge shutdown, threatens operation BY MARTIN ROSS FarmWeek
While Bunge’s soy crushing facility originally was a key factor in siting a Danville biodiesel plant, diversification will help Blackhawk Biofuels weather Bunge’s downsizing. However, congressional inaction jeopardizes the biodiesel operation, its 30 employees, and its contribution to the East Central Illinois community. Blackhawk plant manager Bruce Lutes told FarmWeek his 45-million-gallon-per-year facility currently is producing fuel almost exclusively with animal fat because of higher soy oil costs. Thus, while Bunge’s shutdown announcement is “not a good thing” for Vermilion County producers and the area economy, Lutes reported it does not affect ongoing Blackhawk operations. Of greater concern to Lutes is Congress’ continued failure to extend the $1-per-gallon federal biodiesel blenders credit, which expired Jan. 1. Senate Majority Leader Harry Reid (D-Nev.) recently bumped the credit’s extension from Senate jobs legislation — a move that frustrates Lutes, who sees his industry “caught up in political posturing.” “There are 29,000 (nationwide biodiesel) jobs at stake — all they have to do is sign this one bill, and it’s fixed today,” Lutes emphasized. “It’s hard for us in the biodiesel industry to understand why this shouldn’t be in the jobs bill. We’re hoping to weather this storm, but we really need the help of our legislators.” The biodiesel credit is included in a tax “extenders” package pushed by Senate Finance Chairman Max Baucus (D-Mont.) and ranking committee Republican Chuck Grassley (R-Iowa). Debate over extenders legislation was expected to begin this week, but Reid reportedly continues to resist
Bunge to stop processing soybeans at Danville plant Bunge North America announced last week it plans to stop processing soybeans at its plant in Danville. The move will become effective on April 23, the Associated Press (AP) reported. St. Louis-based Bunge reportedly will stop using the Eastern Illinois facility for soybeans because the industry has excess processing capacity. The closure is permanent and will result in the loss of about 100 jobs, a company spokesperson said. Bunge’s corn mill will remain open, and farmers reportedly will be able to continue to deliver soybeans to the Danville facility for transport to other locations. including the biodiesel credit. The Blackhawk plant, upgraded in 2009 to treat and process a wider variety of biofuels, can now operate on livestock fats, non-soy vegetable oils, and waste cooking grease. Blackhawk is getting animal fat from a variety of sources within a roughly 200-mile radius. The Danville operation markets three major biodiesel products based on fuel attributes rather than feedstock. The biodiesel tax credit originally provided fuel suppliers a $1-per-gallon break for blending “virgin” soy oil and a reduced credit for diesel fuel blended with waste grease or other feedstocks. Research and technology since have yielded several viable biodiesel sources, and Congress expanded the $1 credit to all feedstocks. Blackhawk eventually may restore soy oil to its feedstock mix, “if the market indicates it’s the right thing to do,” Lutes said.
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Illinois Farm Bureau Director Darryl Brinkmann, right, helps Williamson County Farm Bureau leader Duane Wittenborg send online comments about proposed spray drift rules to the Environmental Protection Agency. Participants of the Governmental Affairs Leadership Conference had the opportunity to complete IFB action requests during the conference. (Photo by Kay Shipman)
FarmWeek Page 3 Monday, March 1, 2010
STATE
Illinois sits in transportation catbird seat BY KAY SHIPMAN FarmWeek Illinois holds an enviable spot in U.S. transportation. It boasts great air, waterway, and highway systems. And throw into the mix a president and U.S. secretary of transportation who call Illinois home. “IDOT (Illinois Department of Transportation) actually is looking at a bright future with transportation infrastructure. “It’s an opportunity to make a
FarmWeekNow.com Visit FarmWeekNow.com to learn more about the Illinois Department of Transportation’s new projects.
difference and to make sure Illinois is able to compete,” Illinois Secretary of Transportation Gary Hannig told Farm Bureau members at last week’s Governmental Affairs Leadership Con-
Illinois Secretary of Transportation Gary Hannig, center, discusses possible impacts of high-speed rail on rural crossings with Illinois Farm Bureau directors Dale Hadden, left, and Jim Schielein. (Photo by Kay Shipman)
ference in Springfield. Hannig went through a laundry list of infrastructure projects made possible because the Illinois legislature passed a capital bill last year.
The transportation pinnacle will be development of a highspeed rail line between Chicago and St. Louis developed with $1.23 billion in federal stimulus funds.
Hannig assured Farm Bureau members he is sensitive about the need for rail crossings for business and emergency services in rural areas. “The federal government is trying not to close a lot of crossings,” he said. Illinois has successfully tested crossing arms that prevent motorists from crossing tracks when the arms are lowered, he noted. “We don’t see a significant need to close (crossings). Most of the talk is making crossings safer in small towns,” Hannig added. Mike Garcia, IDOT chief of rail engineering, outlined the state’s current plans to develop high-speed rail. In many cases, the track will stay in the same location, but new concrete ties and steel rails will be added, he said. The state will seek development of a computerized signal and communication system between trains and between
trains and crossings, Garcia noted. “We don’t want trains to run into each other,” he said. Likewise, the state will give special attention to crossing gates to prevent vehicles from getting onto the tracks when the gates are lowered and any vehicle already on the track from becoming trapped, according to Garcia. Illinois also will design the high-speed trains. “What they will look like has yet to be determined,” Garcia said. The state’s plan includes six train sets, each comprised of two locomotives and five cars. Improved rail stations and facilities will be another component of the high-speed rail project and are necessary to attract enough passengers to support the system, Garcia noted. “Our goal is a sustainable system. Anybody can build it, but we have to be sure it runs on and on,” Garcia said.
GALC offers crash course on environmental issues
Input costs and prices won’t be the only challenges facing Illinois farmers this year. Several environmental issues may impact farming practices or farming operations, Farm Bureau members heard at last week’s Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield. “It’s lead-pipe serious,” warned Don Parrish, senior director of regulatory relations with the American Farm Bureau Federation (AFBF), of the environmental issues facing farmers. Those issues were the focus of a general session and several workshops. The summary below is a sampling of some of the challenges farmers face: Chesapeake Bay and total maximum daily loads: Currently, states have the authority to set and implement water quality standards and to balance the needs of all water uses with implementation costs. In the Chesapeake Bay area, U.S. Environmental Protection Agency (EPA) Region 3 is attempting to coerce bay-area states into setting new water standards by threatening to stop issuing new permits for new
water uses or expansion of existing ones, according to Parrish. Without the permits, economic development would come to a halt, he explained. AFBF is concerned action in the Chesapeake Bay could set a precedent for water bodies elsewhere. Atrazine and EPA’s re-reevaluation: EPA is moving forward with a “re-re-evaluation” of the safety of atrazine. “There is no new science since 2006, and we’re confident if this process sticks to the science, it (atrazine) will be re-registered,” said David Flakne, senior state government relations manager with Syngenta. However, activists continue to expand on theories that have been refuted by scientific studies, Flakne said. For example, last week the Illinois House Environmental Health Committee heard from Tyrone Hayes, a University of California Berkeley professor who claimed atrazine alters development in frogs, a theory that has been refuted by science. Meanwhile, a lawsuit on behalf of the Holiday Shores sanitary district in Madison County claims any detection of
atrazine in drinking water is unsafe. Flakne warned lawyers involved with that case have sought to involve other towns in the legal action. Last week, Holiday Shores’ attorneys asked a Madison County circuit judge to dismiss several claims from the lawsuit. The plaintiffs’ legal theories continue to be whittled down, explained Kurtis Reeg, an attorney for Syngenta. Florida and water nutrient standards: EPA has proposed setting specific number standards for nitrogen, phosphorous, and other nutrients in Florida lakes, rivers, streams, and springs. Under those standards,
35 percent of Florida’s most pristine streams would be considered impaired, and agriculture would shoulder a heavy cost to address the proposed standards, according to Parrish. EPA is expected to announce standards by January 2011. Parrish cautioned the Florida process may be attempted in other states. Environmentalists recently threatened to sue EPA if the agency doesn’t set nutrient criteria for Wisconsin bodies of water. Parrish urged Farm Bureau members to stay involved in local water quality efforts and to stay informed on proposed rules and standards.
National Cotton Council case and pesticide regulations: Last week, the U.S. Supreme Court declined to review the ruling of National Cotton Council vs. EPA. That may have repercussions for pesticide regulations across the country, according to Parrish. The U.S. Sixth Circuit Court of Appeals ruled National Pollutant Discharge Elimination System (NPDES) permits should be required for pesticide applications directly to water, over water, or “near” water. “We (AFBF) are working with EPA on what the permit will look like,” Parrish said. — Kay Shipman
ADOPTED LEGISLATOR CHAT
Scientist Continued from page 1 problems, although the stop-production view is advocated by several activist groups. He compared the livestock industry’s situation to changes that occurred in the use of leaded gasoline. Society applied incremental changes until a process was developed to address the problem. People didn’t just park their cars and walk or ride bikes, Bull quipped. “Some activist groups have a different agenda,” Bull commented. “They say, ‘If you (animal agriculture) can’t do it right, then stop doing it until you can.’ ” “I don’t think it’s in the nation’s best interest to now expect animal agriculture is going to shoulder the cost to change direction on its own,” Bull said.
State Sen. William Delgado (D-Chicago), fourth from left, chats with leaders of the Gallatin County Farm Bureau and Saline County Farm Bureau during an Illinois Farm Bureau reception for legislators last week in Springfield. The county Farm Bureaus “adopted” Delgado through IFB’s Adopt-a-Legislator Program. More than 70 state lawmakers met with Farm Bureau leaders during the event, held in conjunction with the Governmental Affairs Leadership Conference. (Photo by Kay Shipman)
FarmWeek Page 4 Monday, March 1, 2010
GOVERNMENT
Health summit flounders; reconciliation next? BY MARTIN ROSS FarmWeek
Amid apparent failure of last week’s bipartisan health care “summit,” health debate is largely where it has been for two months — in the Senate’s court. Senate Democrats thus may attempt to pull a dramatic play out of the congressional rule book — one that bypasses opposition to sweeping changes in health care and coverage. That’s according to American Farm Bureau Federation policy analyst Pat Wolff. Wolff largely dismissed a new 11page White House health “plan” issued last week, characterizing it largely as “more of the same.” “It’s pretty hard to take an 11-page summary and compare it to a 2,000-page bill and
make connections,” she told FarmWeek. She said the plan was “almost word-for-word what (House Speaker) Nancy Pelosi and (Senate Majority Leader) Harry Reid agreed to”: existing Senate legislation, but without provisions to tax high-income “Cadillac” health coverage plans as earlier proposed and with an increase in Medicare taxes as a substitute funding mechanism. The president’s push, just a few days before a televised health care discussion between Obama and 40 Democrat and Republican lawmakers last week, appeared to spark further bipartisan division. Sen. Lamar Alexander (R.Tenn.) argued health care “is a car that can’t be recalled and fixed,“ and Pelosi was “not
overly optimistic” the two parties could reach a mutually acceptable compromise. That leaves some Democ-
port, and Wolff termed the Democrat threat “a big game of chicken.” “You could say the
‘It’s pretty hard to take an 11-page summary and compare it to a 2,000page bill.’ — Pat Wolff American Farm Bureau Federation
rats eyeing the option of “reconciliation” — a congressional maneuver that permits a mere 50-vote Senate “majority” to approve budget-related measures. Reconciliation enables one party to move key legislation without bipartisan sup-
Medicare tax increase definitely has a budget impact, so it’s eligible for a reconciliation vote,” she explained. “Requirements for insurance companies have no impact on the federal budget.” According to Wolff, recon-
ciliation likely would result in “a huge mess” — a disjointed health care plan without a number of key reforms. Beyond more controversial primary proposals, the Senate plan includes proposals to bolster rural medical education, reduce Medicare disparities between regions and urban and rural areas, and improve Medicare reimbursements for rural retail pharmacies. Meanwhile, President Obama threatened to regulate insurance premium increases — a reported response to California insurers who raised some health premiums by as much as 300 percent. Wolff acknowledged a cap on premiums would impact rural providers, but questioned whether Obama could carry through with that threat.
Can new technologies help cellulosic catch up? Amid rapid advancements in technology needed to extract fuel from fiber, cellulosic ethanol could be on the ground — and in tanks — sooner than currently is projected. And from industry indications, corn again is likely to lead the way in development of next-generation biofuels. Steen Risgaard, CEO of key ethanol technology provider Novozymes, told FarmWeek corn residues are “an obvious place to start” in tapping fiber-based sugars for fuel alcohol. Novozymes has unveiled Cellic CTec2, enzymes capable of breaking down tough cellulosic material from a variety of feedstocks — including crop residues, sugar cane wastes, wood chips, and switchgrass. Risgaard projects the new technology could bring production costs down to $2 per gallon, on a competitive par with starch-based ethanol and gasoline. Novozymes is partnering
Feedstock of the future: Ground cor n cobs, shown here, could provide a significant step forward for cellulosic ethanol development and a way to improve corn ethanol’s perceived carbon footprint. (Photo courtesy of Novozymes)
with a number of diverse companies to employ Cellic CTEC2, including Iowa-based Poet, the nation’s most advanced cellulosic developer, with plans to launch full-scale cob-based production by late 2011. The federal renewable fuels standard (RFS2) directs 36 billion gallons of biofuels use by 2022, including roughly 21 billion gallons of anticipated “advanced biofuels” from cellulosic and other non-cornstarch sources. However, amid recent challenges to new biofuels investment and startups, the U.S. Environmental Protection Agency (EPA) scaled down its 2010 cellulosic targets from an initially prescribed 100 million gallons to a mere 6.5 million gallons. EPA acting transportation/climate director Sarah Dunham is optimistic “the volumes will come up” after 2012 as industry developments and biofuels policy foster “more certainty for investment.” Risgaard sees processing advances “creating momentum for large-scale deployment of cellulosics to fulfill ambitions under the renewable fuels standard.” “EPA’s ruling reflects that right now, the industry as a whole is a couple of years behind schedule,” he said. “But we can scramble and within three to five years get back on the originally projected growth track for cellulosics.” Over the past two years, advances by Novozymes and other companies have reduced
the previously prohibitive cost of cellulosic enzymes by 80 percent — Cellic CTec2 costs an estimated 50 cents per gallon of ethanol. Novozymes continues to develop new enzymes for the conventional industry that Risgaard said will make “the economics of corn-based (production) even better than it is today.” Wes Bolen of Warrenvillebased Coskata Inc. argues his company’s approach to cellulosics, gasification of biomass and conversion of resulting “syngas” into fuel, will greatly
speed growth. “Lighthouse,” a Pennsylvania demonstration project, is expected to produce 100-plus gallons of ethanol per ton of biomass. According to Bolen, that includes any biomass, such as cobs, municipal wastes, or a mix of “carbon.” A planned Southeast U.S. followup, Project Flagship, will tap 1-1.2 million “green tons” of wood biomass annually. Because it is feedstock neutral and blendable, Bolen sees the process integrating with existing corn-based plants or reviving flagging pulp paper opera-
tions or sugar mills. The excess steam produced with gasification should help reduce natural gas use in production and thus help biomass ethanol “compete head-tohead with gasoline,” he said. “It’s time to start building — it’s not three years, it’s not five years,” Coskata’s chief management officer said. “We’re not waiting for anything anymore. We’re licensing this technology (to other companies) to make a big impact. We can meet and exceed the 36 billion gallons the RFS2 calls for.” — Martin Ross
Whole-corn ethanol fuel of the future? A New York biofuels company sees wholecorn ethanol as a way to bring cellulosic biofuels to fruition and address costly logistics confronting prospective biomass producers. Working with Cornell University, SweetWater Energy is exploring the potential of “energy sorghum,” which grows to 14 feet in upstate New York. The company also is taking on the entire corn plant — grain, cobs, and stalks. Rather than transporting and/or storing bulky crop residues at remote ethanol facilities, Sweetwater’s patented system extracts a concentrated “sugar water” at the farm level for delivery to a “biorefiner.” Beyond reducing potential cellulosic costs, Sweetwater CEO Jack Baron sees whole-corn production helping significantly reduce the ethanol industry’s carbon footprint, a key factor in federal renewable fuels standards. “This is working extraordinarily well,” he told FarmWeek. “It’s a lot about supply chain logistics. We take a tremendous amount of the energy out of the front end of the supply chain and thereby take a lot of the costs out. “And we play in both the starch-based and the cellulosic worlds. We’re taking twice as much sugar out of each acre of corn with our
process, which makes corn a different (energy) crop than it’s been historically. “If, in fact, you suddenly have half the requirement in terms of corn land in order to produce corn ethanol, it changes the debate significantly.” Mindful of its carbon footprint, SweetWater is incorporating corn stover back into its test acres — an important factor for heavy no-till, low-till states such as Illinois. Baron estimates his process offers an 80 percent decrease in potential transportation costs and a two-thirds reduction in ethanol refining costs at the plant. By delivering sugar water to the processor, SweetWater skips to “step seven” of the normal 12-step dry grind corn ethanol production process, he said. SweetWater’s ethanol co-product — another essential component in industry economics — remains on the farms, with roughly a third of the biomass converted into a high-fiber livestock ration in combination with distillers dried grains (DDGs). “DDGs are a component we buy back from other biorefiners — we’re in the market as a DDG acquirer,” Baron related. “Our product is extremely good for dairy cattle and for beef cattle, and we’re working a little with gestating sows now.” — Martin Ross
FarmWeek Page 5 Monday, March 1, 2010
ENERGY
Ethanol growth to have little impact on food prices BY DANIEL GRANT FarmWeek
Food price inflation was projected to revert to a “normal” range this year after exhibiting wild swings in 2008 and 2009. Ephraim Leibtag, economist with the USDA Economic Research Service, last month projected food price inflation this year could average between 2.5 percent and 3.5 percent. That would fall in line with food price inflation the past decade, which averaged 2.9 percent on an annual basis. “The assumption is an improved economy will lead to more normal (food price) inflation,” Leibtag said last month at the USDA Ag Outlook Forum. It would be a big change from the previous two years when the consumer price index for food jumped by a decade-high
5.5 percent in 2008 before sinking to a 10-year low of 1.8 percent last year during the recession. “The last several years really have been dynamic,” said John Urbanchuk, economist and technical director of the consulting firm Entrix. “Food prices have been on a roller coaster ride.” The unusual dip in food price inflation last year mostly was the result of lower demand due to the recession, according to the economists. Leibtag believes increased competition in the retail food sector also could limit food price inflation. Last year about 40 percent of food in the U.S. was purchased outside of traditional grocery stores. Leibtag predicted by 2012 more than half of all food will be purchased at nontraditional grocery stores
such as Wal-Mart. Meanwhile, the massive run-up in food prices in 2008 mostly was due to a
aspects of food production.” Ethanol production played a much less signifi-
‘Energy is imbedded in virtually all aspects of food production.’ — John Urbanchuk Entrix
commodity price bubble and more specifically record-high oil and energy prices, according to Urbanchuk. “Oil prices drove retail food prices (in 2008),” Urbanchuk said. “Energy is imbedded in virtually all
cant role in food price inflation in 2008 than previously reported, according to Urbanchuk, and should have a minimal impact on food prices this year. USDA projected the ethanol industry will consume an additional 130 million
bushels of corn annually between 2010 and 2014. But the price of corn this year is projected to average around $3.60 per bushel as stocks remain ample. “What happens to commodity (grain) prices is meaningful, but it does not dominate what happens to retail food prices,” Urbanchuk said. By contrast “energy has roughly twice the impact as commodities on food prices.” Leibtag agreed, saying, “The farm price is less than one-fifth of the cost of food, so it doesn’t have much of an impact.” The chance of higher food inflation this year compared to last year’s decade-low, therefore, is based on predictions of economic recovery and strong oil prices, which last week hovered around $80 per barrel compared to $44 per barrel during the same time last year.
California regulations back door for Brazilian ethanol? BY MARTIN ROSS FarmWeek
Domestic ethanol interests continue their legal assault on new California air regulations that could, according to Renewable Fuels Association (RFA) President Bob Dinneen, provide the backdoor for a West Coast glut of South American imports. California’s low-carbon fuel standard and its underlying emphasis on biofuels greenhouse gas (GHG) emissions and the theoretical impact of global land use change on them offers Brazilian sugar cane ethanol a “mysterious carbon benefit” while penalizing Midwest ethanol, Dinneen said. Ethanol interests have filed suit against California, charging the standard is unconstitutional and discriminatory. In drafting the standard, the California Air Regulatory Board (CARB) allegedly imposed more stringent GHG criteria on corn ethanol than for other alternative sources. At the same time, officials scored sugar cane ethanol significantly higher in reducing GHG impact. Under CARB regulations, Brazilian ethanol appears to be California’s top option for meeting both federal targets and state biofuels requirements. By “erecting a ‘No Midwest ethanol’ sign at the border,” California is attempting to regulate “how renewable fuels can be produced in other states,” Dinneen argued.
“Apparently, there’s a big carbon impact because we have to ship our ethanol all the way from Illinois to California,” he told FarmWeek. “It seems to
‘There are all kinds of inconsistencies and questionable assumptions in (California’s) analysis.’ — Bob Dinneen Renewable Fuels Association
me that Brazil is even farther away. But somehow, they’re able to get their ethanol to California without a carbon penalty. “And there’s a penalty for shipping ethanol to California but apparently none for shipping corn to process into ethanol there. There are all kinds of inconsistencies and questionable assumptions in their analysis.” Illinois Farm Bureau economist Mike Doherty notes a “longstanding relationship” between Brazil and California. Brazilian envoys have conferred with state officials since at least 2001, “looking for their opportunity to import Brazilian ethanol into this huge market,” Doherty said. RFA also seeks continuation of a federal ethanol tax credit set to expire at year’s end and a 54-cent-per-gallon tariff on
imported ethanol. U.S. fuel suppliers receive the credit whether they blend U.S. or imported ethanol, and the tariff exists “not to protect the (U.S. ethanol) industry but to protect the U.S. Treasury,” which otherwise would “suddenly be subsidizing Brazilian sugar,” Dinneen said. Brazil already has a back door for ethanol through the Caribbean Basin Initiative (CBI), a U.S. treaty that permits tariff-free importation of ethanol from the Caribbean, up to 7 percent of annual U.S. production. Brazil currently ships dehydrated ethanol through the Caribbean for reconstitution and legal duty-free shipment to the mainland. CBI limits may seem meager, but U.S. production has passed 10.5 billion gallons. Brazil’s ability to reach a 7 percent threshold thus could fulfill California’s prospective biofuels demand under low-carbon standards or even establish a beachhead for expanded market entry, Doherty suggested. “They’re going to build relationships and shipping contacts,” he emphasized. “There are efficiencies to be gained in maintaining those relationships. “There are some pretty big Gulf of Mexico markets for ethanol, and under certain market conditions, there are points where it becomes break-even to bring (ethanol) in duty-free through the Port of Galveston.”
South America’s ethanol export potential uncertain Brazilian Sugarcane Industry Association North American representative Joel Velasco dismisses the notion that “Brazil’s going to flood the U.S. with ethanol.” He noted that estimated annual U.S. production capacity is more than double Brazil’s. He questions a U.S. ethanol import tariff (see accompanying story) that in his view “imposes a penalty on clean energy in the case of sugar cane ethanol, but says to oil producers, ‘Your oil comes in duty-free.’ ” While Velasco acknowledges the sugar industry’s desire to build exports, he sees a “huge domestic market” continuing to consume much of Brazil’s ethanol production. Brazil has mandated 20-25 percent ethanol use, most recently dropping the blend level to 20 percent to address sugar supply issues. “In an average year, Brazil has been exporting maybe 500 million gallons of ethanol,” Velasco told FarmWeek. “People make a big deal out of the export market, but it’s usually less than 10 percent of its production. “This last year, we produced about 6-6.5 billion gallons of ethanol in Brazil. This coming year, we’ll probably produce 8 million or so. The U.S. this year may actually export some ethanol to Brazil, and that’s a good thing.” Velasco nonetheless argues that, long-term, Brazil will offer “a far more competitive product”: “We make a $1-a-gallon fuel day-in/day-out, and we only think it’s going lower.” Illinois Farm Bureau economist Mike Doherty pegs tight Brazilian supplies to a shift of recently high-priced sugar toward food use. But Doherty see that as a temporary situation. Velasco cited Brazilian regulations limiting cane production to only 7 percent of the country’s total land mass. Currently, however, he estimates only 1 percent of available land is being used to raise sugar. Unlike the corn ethanol industry, Brazilian processors can bypass feedstock pretreatment necessary to convert starch to fermentable sugars. Given the nation’s existing sugar mills, Doherty sees longterm potential for expanded cane ethanol production with relatively modest new construction. — Martin Ross
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TRADE
China expected to remain large ag importer BY DANIEL GRANT FarmWeek
A ferocious appetite in China has been largely credited with the record pace of U.S. soybean exports, which is projected to reach 1.4 billion bushels for the current marketing year. But while the rate of U.S. soybean exports could slow this spring as competition from South America heats up, the overall trend in China is
expected to remain the same. “There really are two views about China,” said Kevin Latner, director of the USDA Economic Research Service (ERS) agricultural trade office in Chengdu, China. “One is it’s a great market opportunity, while the other is it’s a great competitor that’s going to eat our lunch.” So which is it? “I think (China) will con-
tinue to be an export opportunity,” Latner said recently at the USDA Ag Outlook Forum. “Chinese consumers are increasingly affluent and, as we’ve seen in the soy market, the U.S. is competitive.” China’s upper-middle income population is projected to increase from 30 percent in 2015 to 75 percent by 2025, said Latner, who also projected the Chinese food
ENOUGH, ALREADY
‘There really are two views about China.’ — Kevin Latner USDA Economic Research Service
service industry will be larger than its U.S. counterpart by 2012. “These are the people who really are looking to buy our products,” Latner said. “As incomes rise, the Chinese eat more and more high quality, premium products and a lot more food away from home.” China has attempted to become more self sufficient in food production by implementing practices such as multi-cropping, inter-cropping, intensive use of greenhouse systems, and a sharp increase in the use of mechanization, according to Fred Gale, senior economist with USDA ERS. But “there are signs they’ve gone beyond sustainability,” Gale said of the Chinese. “They will need to rely
more in imports.” Fertilizer use in China has increased by about 81 percent since the 1990s. Meanwhile, livestock in China currently total about 4.8 billion poultry (twice as much as the U.S.), 419 million hogs (about six times as much as the U.S.), and 105 million cattle (nearly 10 million head larger than the U.S. herd). “They have a large livestock population on a small and fixed land base,” Gale said. “Their resources are being drawn down to support this level of production.” China currently possesses about 9 percent of the arable land in the world but is home to 22 percent of the world’s population (1.3 billion people).
Snowfall always makes for pretty scenery, especially in Jo Daviess County, but with the turn of the calendar to March, let’s hope further scenic snow pictures can wait until next winter. The Jo Daviess County farmstead in the background here was purchased by relatives of Tom Moser in the early 1900s. Moser, who formerly was a contractor, is in the process of restoring the farmhouse and hopes to move his family into it in about a year. (Photo by Ken Kashian)
Davenport to play host to ‘Gathering of the Green’ Davenport, Iowa, will be the place to be this month for antique John Deere tractor enthusiasts. The sixth “Gathering of the Green” conference will be March 17 to 20 at the River Center in Davenport, which is just across the Mississippi River from Moline. The convention-style conference will feature John Deere antique two-cylinder and New Generation tractors and implements. Vendors at the event will offer services for new and used equipment, reproduction parts, manuals, books, tires, signs, JD decals, art, clothing, and memorabilia. There also will be workshops, evening speakers, and an auction. On-site registration is $35 per person for all four days of the conference or $10 per day. For more information, visit the website {www.gatheringofthegreen.com}, call Gathering Information at 815-246-4121, or call Ken Reese at 815-578-8635.
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TRADE
Industry leader sees U.S. livestock sector growth BY DANIEL GRANT FarmWeek
JBS SA, the world’s largest producer and exporter of beef, got its start in Brazil. But much of the future growth for the company likely will be in the U.S., according to Wesley Batista, CEO of JBS USA. “The dynamics have changed and we believe the U.S. will be a strong platform” to expand operations, said Batista, who was a featured speaker last month at the
USDA Ag Outlook Forum in Arlington, Va. JBS since 2007 acquired Swift & Co., purchased a majority interest in poultry giant Pilgrim’s Pride, and more recently purchased Smithfield Beef and its feedlot operations known as Five Rivers. The company’s five-year plan is to build up its distribution capabilities so its livestockbased products can be delivered closer to end-users and consumers, according to Batista. JBS USA currently has the
Ag export rebound projected in 2010 U.S. ag exports are expected to bounce back this year as economic conditions gradually improve around the world. USDA last month revised its projection upward for fiscal year 2010 ag exports by an additional $2 billion. The current projection for U.S. ag exports this year, $100 billion, is $3.4 billion above 2009. “That (export projection) to me is rather astounding,” said Jim Miller, USDA under secretary for the Foreign Agricultural Service, during the USDA Ag Outlook Forum. “It would be the secondhighest level” on record, he said. Soybean shipments are leading the recovery in exports, according to Miller. U.S. soy exports, which are being driven by Chinese demand, are projected to reach a record 1.4 billion bushels. Meanwhile, U.S. beef and pork exports are projected to increase 9 percent in 2010, USDA projected. “We’re beginning to see recovery of the domestic economy and the global economy,” Miller said. “That’s extremely important for ag.” The U.S. gross domestic product (GDP) was projected to grow this year by as much as 3.3 percent, although the labor market is expected to stagnate with unemployment at about 10 percent. “Exports suffered during the global downturn, but they’re starting to grow again,” said Ron Kirk, U.S. Trade Representative. The expansion of U.S. exports is a key part of the Obama administration’s effort to improve economic conditions, Kirk said. The National Export Initiative recently unveiled by Obama aims to double U.S. exports within the next five years. The initiative could create 2 million jobs in the U.S., Kirk said. “That is part of the overall strategy to put America back to work,” Kirk said. “And agriculture is a critical component of America’s export and trade policy.” Kirk said his office will continue to try to improve access to markets and also will place a greater emphasis on the enforcement of existing trade policies to ensure a “level playing field” for U.S. exporters. “Made in America and raised in America still means something,” he said. “If we level the playing field, our farmers and ranchers can compete anywhere in the world.” Meanwhile, imports of ag products this year were projected to climb $4 billion to a total of $77.5 billion. “The surplus (of $22.5 billion in ag trade in the U.S.) not only is important to agriculture but also the general economy,” Miller added. — Daniel Grant
capacity to process more than 65,000 head of cattle and more than 45,000 head of hogs per day. It is the third-largest pork producer in the U.S. Why is JBS focused on growing its business in the U.S. at a time when the livestock industry is coming off two years of losses and when there is mounting pressure from activist groups? “We believe the demand for protein will increase worldwide,” Batista said. “We know that when people leave poverty and enter the middle class, their demand for animal protein will increase.” And U.S. farmers can supply the livestock with safe and ample supplies of feed, Batista said. Meanwhile, increased regulations in Europe and competition for land in South America have reduced beef output in both locations, according to Batista. JBS has a policy of not purchasing cattle from farmers involved in deforestation of the Amazon rainforest in Brazil, Batista said. Pasture ground, therefore, is harder to obtain in Brazil as more land is converted to crop production.
The U.S. market has its own challenges, though. Batista urged the U.S. government to fully open international markets and to limit burdensome regulations and taxes on the livestock industry. He also believes it’s important for producers to be able to take advantage of new technologies and efficiencies to feed the world’s growing population, which is projected to
jump from 6.8 billion to 9 billion people by 2050. “We must come together with producers to confront the challenges in front of us,” Batista said. The success of JBS and the livestock industry also is extremely important to crop producers. JBS currently consumes 5 percent of the U.S. corn crop and 2 million tons of soybean meal each year.
U.S. Trade Representative Ron Kirk, left, discusses ag trade with Ag Secretary Tom Vilsack at the USDA Ag Outlook Forum. Vilsack identified expanding markets overseas as one of six steps to help improve price prospects for farmers and to improve the overall economy. Kirk, meanwhile, said expanding ag trade is a critical part of President Obama’s goal to double exports within the next five years. (Photo by Daniel Grant)
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STATE
Horse judges seminar planned for April 17 The annual Illinois State Horse Judges Seminar will be from 8 a.m. to 5 p.m. April 17 at the University of Illinois. Registration and classroom instruction will begin in the Animal Science Lab, Room 150, 1207 W. Gregory Drive, Urbana. Additional classes will be held in the U of I Stock Pavilion. The seminar is open to all youth and open horse show judges, potential judges, exhibitors, and horse event spectators. The goal is to encourage uniform standards for judging and exhibiting horses at Illinois horse shows and to develop a directory of judges for show committees. Topics covered will include criteria for judging classes of halter, showmanship, horsemanship, hunt seat, equitation, Western pleasure, and gaited horses. Tips for judging 4-H shows will be included. The fees are $20 for participants younger than 18, $30 for adults, and $50 for adults wishing to take both written and live judging exams for inclusion in the Illinois Horse Judge’s Directory. The seminar is sponsored by the U of I Extension and the U of I animal sciences department. Registration materials may be obtained from Kevin Kline, U of I, 388 Animal Sciences Lab, 1207 W. Gregory Drive, Urbana, Ill., 61801. His e-mail address is kkline@illinois.edu.
Six field days offered for small-scale farming Soil testing, cover crops, rotational grazing, and equipment selection are among topics that will be offered at six New Farmer Field Days for small-scale farm operations. The field days are geared toward individuals interested in small-scale farm operations that are economically and environmentally sustainable, according to Deborah Cavanaugh-Grant, University of Illinois Extension specialist and the field days cofacilitator. Pre-registration is required at least four days prior to each workshop. Dates, locations, and topics are: • April 10, Teresa’s Aronia Acres, Congerville, and Teresa’s Fruits and Herbs, Eureka; developing valueadded products; • May 22; Spence Farm, Fairbury; equipment for small farmers; • June 12, Prairie Fruits Farm, Champaign; evaluating soil quality and soil maps; • June 16, Indian Creek Farms, Jacksonville; rotational grazing and fencing; • July 24, PrairiErth Farm, Atlanta; cover crops; and • Aug. 14, Pleasant Ridge Farm, Forrest; farmland lease arrangements and transitioning to organic farming. The Central Illinois Farm Beginnings (CIFB) is cosponsored by the U of I
Extension and The Land Connection. The year-long program includes course work, field days, workshops, and mentorships for participants. There is a fee of $15 per workshop for registrants who are not enrolled in CIFB or are not members of the Central Illinois Collaborative Regional Alliance for Farmer Training (CICRAFT) network. CICRAFT is committed to providing services and assistance to Central Illinois sustainable farm operations and especially to new farmers. For more information or to register, go online to {http://web.extension.uiuc. edu/smallfarm/begin_farm. html} or contact Cavanaugh-Grant at 217968-5512 or cvnghgrn@illinois.edu.
Illinois to receive hike in specialty crop grants The Illinois Department of Agriculture • Help all entities in the specialty crop distribu(IDOA) will receive more federal block grant tion chain develop good agricultural practices, good funds next year for the state’s specialty crop handling practices, good manufacturing practices, industry. About $640,000 is available. and assist with funding for audits of those practices; IDOA intends to award “mini-grants” that • Invest in specialty crop research, including expand markets for fresh produce grown in Illinois organic research, to focus on conservation and and will accept environmental applications until outcomes; the 4 p.m. April • Enhance ‘The grants will raise awareness about food 30 deadline. safety; the abundance of fresh fruits and veg“The grants • Develop will raise awarenew and etables that are available here.’ ness about the improved seed abundance of varieties and fresh fruits and — Tom Jennings specialty crops; vegetables that • Improve Agriculture Director are available here pest and disease and help concontrol; and sumers make food choices that improve not only • Promote organic and sustainable production their health, but also the health of their local econ- practices. omy,” said Agriculture Director Tom Jennings. Projects that improve food access in underProposed projects should accomplish one or served communities or expand local agricultural more of the following: economies also are eligible. Another eligible • Increase child and adult nutrition knowlexpense is advertising-related expenses to publiedge and consumption of specialty crops; cize farmers’ markets, as long as program • Ensure industry participation at meetings of requirements are met. international standard-setting bodies in which IDOA will award the grants early next the U.S. government participates; year. Applications and instructions are available • Improve efficiency and reduce costs of dis- online at {www.agr.state.il.us} or by calling 217tribution systems; 524-9129.
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OUTLOOK
Competition for farmland still strong in Illinois BY DANIEL GRANT FarmWeek
Young farmers who would like to expand their operations should have opportunities to acquire more acres. But the process will take time, energy, and even some savvy marketing skills because
competition for farmland has remained strong throughout the ongoing national recession, according to Jerry Hicks, an accredited farm manager with Agrivest Inc. He discussed farmland market trends recently at the Illinois Farm Bureau Young
WIU ag school sets March 5 open house Western Illinois University (WIU) School of Agriculture will host an open house March 5 on the Macomb campus for high school and transfer students. Registration will start at 11:30 a.m. followed by a meal at noon. Tours will start at 12:45 p.m., and activities will conclude at 3:30 p.m. William Bailey, the ag school director, as well as faculty and current students, will provide information about the opportunities offered through the department and on campus. The event also will feature a campus tour, including the university farm and the livestock center. Each participant’s name will be entered into a drawing for one of two scholarships worth $100 each. All participants should park at the WIU Livestock Center and take a shuttle bus to campus. For more information, call the School of Agriculture at 309298-1080 or e-mail wiuagriculture@wiu.edu. Students may register online {www.wiu.edu/ag/agopenhouse.php}.
Leader Conference in Springfield. “We’re losing more farmers (which may provide opportunities for young farmers),” Hicks said. “But it seems there is more competition because everybody can handle more acres. So (young farmers) have to be patient.” The 2007 Ag Census showed just 125,000 farms produced more than twothirds of the food in the U.S. compared to 2002 when it took 144,000 farms to produce the same amount of food. It probably is no surprise, then, that the value of highproductivity farmland remains strong with farmers continuing to dominate the market at many sales. “Good land has stayed stable,” Hicks said. “Seven-thousand dollars per acre in this area (Central Illinois) still is pretty accurate.” Some cash rent rates have remained stable as well, although Hicks believes rental rates on some farms could
decline this year by anywhere from 1 to 10 percent due to a drop in farm income compared to 2007 and 2008. Hicks advised Young Leaders interested in expanding their operations to not only improve the efficiency of their operations but also to work on building good relationships with landlords and be prepared to market themselves with such tools as resumes and financial statements. “We’re in a trust game,”
Hicks said. Landlords “have to trust you and be confident in what you’re doing on their farm.” Landlord trust and building relationships is increasingly important as the trend of more and more absentee landowners continues, Hicks said. Illinois leads the nation in the portion of farmland (62 percent) owned by absentee landowners. The national average is 38 percent, according to the most recent census.
U of I ACES schedules ExplorACES March 12-13 The University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) will host ExplorACES an event for prospective students and parents March 12-13 on the Urbana campus. FarmWeekNow.com More than 1,500 high school students from across the state To learn more about the Univerare expected to attend. sity of Illinois’ ExplorACES event, ACES students will offer go to FarmWeek-Now.com. more than 100 hands-on exhibits relating to classes, clubs, and honors research. Visitors also will tour lab and classroom facilities and talk with ACES faculty members. ACES offers 10 undergraduate majors with 39 different concentrations. ExplorACES gives prospective students an overview of potential careers and fields of study, including bioengineering, community development, economics, human nutrition, plant breeding, resource ecology, and pre-veterinary studies. For more information, go online to {aces.illinois.edu/ExplorACES/} or call 217-333-2728.
Auction Calendar Tues., Mar. 2. 10 a.m. Farm machinery. Bradd Farms, Inc., Gene Bradd, COOKSVILLE, IL. Bill Kruse, Auctioneer. Tues., Mar. 2. Christian Co. Farmland. www.soycapitalag.com Wed., Mar. 3. 1 p.m. 357 Ac. Macon and Logan Counties. Edward Garver, DECATUR, IL. Mike Hall Auction Co. www.mikehallauction.com Wed., Mar. 3. 2 p.m. 175 +/- Ac. Stark Co. Ron Elliott, BRADFORD, IL. Rick Rediger and Bob Johnson, Auctioneers. www.rickrediger.com www.biddersandbuyers. com Thurs., Mar. 4. 10 a.m. Farmland Auction. Lorna, Kurt, Kendall and Roberta Klokkenga, EMDEN, IL. Nehmelman Auction Co. topauctions247.com/nehmelman Thurs., Mar. 4. McLean Co. Farmland. www.soycapitalag.com Fri., Mar. 5. and Sat., Mar. 6. 9 a.m. Both Days. Consignment Auction. RANTOUL, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Mar. 6. 10 a.m. Farm machinery and misc. Dennis and Janice Blunt, GREENVILLE, IL. Langham Auctioneers Inc. auctionzip.com Sat., Mar. 6 10 a.m. Consignment Auction. POPLAR GROVE, IL.
Gordon Stade, Auctioneer. Sat., Mar. 6 9:30 a.m. Farm machinery. Elaine Sheets, RUTLAND, IL. Lauf Auction Service. Sat., Mar. 6. 9 a.m. Country Estate Auction. Carroll Suites Estate, Goldie Suits, HILLSBORO, IL. Cory Craig, Auctioneer. www.corycraig.com Sat., Mar. 6. Machinery Auction. NASHVILLE, IL. Schaller Auction Service. www.schallerauctionse rvice.com or www.auctionzip.com Sat., Mar. 6. 10 a.m. Farm and Recreational Land. Fred Smith, Jr. Estate, CARLINVILLE, IL. Mike Crabtree, Auctioneer. Sat., Mar. 6. 10 a.m. Like new JD tractors and machinery. Deanne Bonetto, HILLSBORO, IL. Kues Bros. Auction Co., LLC. biddersandbuyers.com/kruesbros Sat., Mar. 6. 10 a.m. 142 Ac. DeWitt Co. D.D. and Tennie E. Moody Trust, WAPELLA, IL. www.haycraftauctions. com Tues., Mar. 9. 10 a.m. 80 Ac. Livingston Co. Raymond E. Finfgeld Estate, KERNAN, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc. com Wed., Mar. 10. 10 a.m. 600 Ac. McLean Co. Raymond E. Finfgeld Estate, COLFAX, IL. Bradleys’ and Immke Auction Service.
www.bradleyauctionsinc. com Wed., Mar. 10. 10 a.m. Excavation eq. Bicksler Excavating, Inc., NEWARK, IL. Marty McConville and Joe McConville, Auctioneers. www.mcconvillerealty. com or www.biddersandbuyers. com Thurs., Mar. 11. 10 a.m. Farm machinery. Gene and Julie Blue, CLINTON, IL. Mike Maske Auction Service. www.maskeauction.com Thurs., Mar. 11. 10 a.m. 1,129.48+/- Ac . Walworth Co., WI. ELKHORN, WI. Farmers National Co. Fri., Mar. 12. 10:30 a.m. Real Estate Auction. Esther Ritke, Randal Ritke, MORRIS, IL. Marty McConville and Joe McConville, Auctioneers. Fri., Mar. 12. 9 a.m. Consignment Auction. GREENVIEW, IL. Ron Sanert, Gordon Watkins and Eldred Nehmelman, auctioneers. sanertauctions.com or topauctions247.com/nehmelman Sat., Mar. 13. 9:30 a.m. Farm machinery. Wiesbrock Turf Farms, SUGAR GROVE, IL. Almburg Auctioneering. Sat., Mar. 13. 10:30 a.m. Farm machinery and miscellaneous. Ross Pauli, DUNLAP, IL. Col. John Bliss and Col. Gail Cowser, Auctioneers. www.illinoisauctioneers. org
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ENVIRONMENT
NRCS announces new WRP payment process The Illinois Natural Resources Conservation Service (NRCS) has announced a new payment process for the Wetlands Reserve Program (WRP). NRCS State Conservationist Bill Gradle said the new payment rates and application process will make WRP enrollment quicker and offers financial incentives for establishing easements. WRP is a voluntary program intended for restoration, enhancement, and protection of wetlands on agricultural lands. NRCS provides landowners with technical and financial support. A minimum of 20 acres may be enrolled. The applying landowner must own the land for the previous seven years. Landowners have three options: a 30-year easement, a permanent easement, or restoration easement only. Landowners who sell a WRP easement receive a lump sum cash payment in exchange
for restoring or converting marginal agricultural land to wetland areas. They also agree to maintain areas protected by WRP easements. WRP easement offers will be based on the region’s easement rate cap or the landowner’s offer, whichever is lower. The new payment option offers a streamlined geographic area rate cap to determine the value of land submitted for the program. Rate caps are based on regional locations and an up-to-date market analysis. Illinois NRCS also updated its WRP easement rate caps and ranking form. Rates range from $2,800 to $4,400 per acre. See the accompanying map for county rates. The map and additional information are online at {www.il.nrcs.usda.gov/program s/wrp_ewp/wrp_index.html}. To enroll or receive more information, contact the NRCS office serving your county.
DATEBOOK March 5 Western Illinois University School of Agriculture open house, 11:30 a.m. to 3:30 p.m., Macomb. For information, call 309298-1080 or e-mail wiuagriculture@wiu.edu. March 5-7 Annual Illinois Horse Fair, Illinois State Fairgrounds, Springfield. Clinics, demonstrations, judging trials, and exhibits. For tickets, call 217-5851600 or go to {www.HorsemensCouncil .org}. March 9 Certified livestock manager and manure management workshop. 8:15 a.m. to 12:30 p.m. Sangamon-Menard Extension, Illinois State Fairgrounds, Springfield.
The Natural Resources Conservation Service has set 2010 area rate caps for the Wetlands Reserve Program. Rate caps are based on regional locations and an up-to-date market analysis.
March 16 Illinois Ag Legislative Day. Howlett Building, Capitol Complex, Springfield.
FOOD CHECK-OUT PARTICIPANTS
Laura Gibbs of Rockford’s WREX Channel 13 checks out the vegetable aisle as she fills her cart with healthy foods as a part of Food Check-Out Week in Winnebago County. Representatives of the three local TV stations competed by filling their grocery carts with enough healthy food to feed a family of four for a week. The food collected was donated to the Rock River Valley Food Pantry. Participating in addition to Gibbs was Mike Garrigan, WIFR Channel 23 news anchor, and Eric Nefstead, WTVO Channel 17 weekend meteorologist. More than $500 worth of groceries was collected and donated by the Winnebago County Farm Bureau to the food pantry. Garrigan won the contest by filling his cart with the amount of food that came closest to the dollar amount needed to feed a family of four for a week. (Photo by Roger Christin, Winnebago County Farm Bureau)
Did you know? In Illinois, FFA supervised agriculture experiences (SAEs) projects contribure more than $10 million to the state’s economy each year. *** One-fourth of the Illinois civilian workforce is employed in the agricultural industry.
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FROM THE COUNTIES
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UREAU — Kevin Gale, AgriGold Hybrids regional agronomist, will be the speaker at an agronomy update meeting at 6:30 p.m. Monday (today) at the Farm Bureau office. Dinner will be served. Call the Farm Bureau office at 815-875-6468 for reservations or more information. • An informational meeting for the spring Farm Bureau task force groups will be at 6 p.m. Tuesday at the Wine Cellar. Members may choose from four main task forces on which to serve. Those include Education, Member Relations, Farm Business, and Government and Policy. There are only two meetings a year to attend. Call the Farm Bureau office at 815-8756468 for reservations or more information. ARROLL — Carroll County Farm Bureau Foundation scholarships are available. There are four $1,000 general ag scholarships, a $1,000 Harold Schmidt Memorial Forestry scholarship, and two $500 Viola Rath Memorial scholarships. Applications are available at the Farm Bureau office or on the website {www.carrollcfb.org}. Deadline to return applications is March 24. • Farm Bureau will sponsor two computer classes — Intro to Word on March 8 and Intro to Excel on March 15. Classes will be from 6:30 to 8:30 p.m. and will be held at Eastland High School. Cost is $15 per class or $25 for both. Call the Farm Bureau office at 815-2443001 for reservations or more information. • The 4C’s Prime Timers will meet at 6:30 p.m. Friday at the Farm Bureau office for a potluck dinner. Cards and games will be played following dinner. Call the Farm Bureau office at 815-2443001 for more information. FFINGHAM — Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will be the speaker at an average crop revenue election program at 7 p.m. Tuesday at the Farm Bureau office. Call the Farm Bureau office at 217-342-2103 or email ecfbmgr@con solidated. net for reservations or more information. • The annual meeting will be at 6:15 p.m. Monday, March 8, at the Farm Bureau office. Dinner will be served. Rich Guebert Jr., Illinois Farm Bureau vice president, will be the speaker. Call the Farm Bureau office at 217-342-2103 for
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reservations or more information. • Farm Bureau will sponsor a dinner and entertainment evening at 6:30 p.m. Monday, March 15, at the Teutopolis Knights of Columbus. The Sawyer Brothers will provide the entertainment. Cost is $3. Reservations and payment are due by Monday, March 8. Call the Farm Bureau office for reservations or more information. ORD-IROQUOIS — Farm Bureau will sponsor Viewpoint breakfast meetings at 7 a.m. at the following dates and locations: Thursday, Donovan Co-op Elevator, Martinton; and Monday, March 8, Happy Days Diner, Roberts. Call the Farm Bureau office at 800-424-0756 for more information. ENRY — An Onthe-Road seminar will be at 7 p.m. Tuesday at the Farm Bureau office. Call the Farm Bureau office at 309-937-2411 for reservations or more information. • Elwynn Taylor, Iowa State University Extension climatologist, will be the speaker at a market outlook meeting at 6:15 p.m. Thursday, March 18, at the Moline Viking Club. Dinner will be served. Cost for the session is $18. Call the Farm Bureau office at 309-937-2411 for reservations or more information. • The Young Leaders will sponsor a countywide food drive “Sharing the Harvest” from March 1 to March 26. Non-perishable food items can be delivered to the Farm Bureau office or any Country Financial office in Henry County. Young Leaders will deliver the items to food pantries in the county. Call the Farm Bureau office for more information. ENDALL — Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker at an On the Road seminar at 1:30 p.m. Friday, March 12, at the Farm Bureau auditorium. Topics will include the new entry audit and U.S. Department of Transportation numbers. Call the Farm Bureau office at 630-553-7403 for reservations or more information. • A truck inspection day will be from 8 a.m. to 2 p.m. Thursday, March 25, at the GRAINCO FS plant, Rt. 47, south of Yorkville. State Troopers Mark Odentha and Steve Harris will be the inspectors. • There are four $1,000 Kendall County Farm Bureau Foundation scholarships
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available for Kendall County Farm Bureau members; a $1,000 Matlock Memorial Scholarship for a Kendall County Farm Bureau member; and four $2,500 Dobbin Family scholarships for Kendall and LaSalle County high school or college students pursuing a degree in agriculture. Deadline to return applications is July 1. Call the Farm Bureau office at 630-553-7403 for an application or more information. (Correction: Last week’s FarmWeek listed Kane County Farm Bureau members. It should have read Kendall County Farm Bureau members.) • The Prime Timers will sponsor a bus trip Thursday, April 8, to Circa 21 Dinner Playhouse in the Quad Cities to see “Church Basement Ladies 2.” Cost is $75. The bus will leave the Farm Bureau office at 9:30 a.m. Call the Farm Bureau office at 630-553-7403 for reservations or more information. ASALLE — The LaSalle County Farm Bureau Board of Directors and Viewpoint Committee will sponsor a Call-a-Thon from 7 to 8 p.m. Monday, March 8, for the purpose of collecting new ideas, concerns, and needs of LaSalle County Farm Bureau members. Members in each district will be called. Those who don’t receive call should contact their district director or the Farm Bureau office at 433-0371. • The LaSalle County Farm Bureau Foundation has two $1,000 scholarships available for students who will be or are currently enrolled in an ag-related field of study. Deadline to return applications is 4:30 p.m. Friday, March 26. Call the Farm Bureau office at 815433-0371 or go online to {www.lasallecfb.org} for more information. ACON — Macon County scholarship applications are available on the website {www.MaconCFB.org}. Applications must be postmarked by Monday (today). ACOUPIN — Dale Durchholz, AgriVisor senior grain market analyst, will be the speaker at the spring outlook meeting at 6 p.m. Wednesday, March 10, at the Farm Bureau office. Dinner will be served. Maxi-Yield Crop consultants and a Country Financial crop insurance specialist will give presentations. Cost for non-members is $10, with no charge for Farm Bureau members. Call the Farm Bureau office at 217-
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854-2571 by Friday for reservations or more information. • The Macoupin County Agriculture Education Foundation has scholarships available for students who will continue their education in an ag-related field. Deadline to return applications is March 19. Call the Farm Bureau office at 217-8542571 for an application or more information. ARION — Farm Bureau will sponsor a legislative breakfast at 7:30 a.m. Monday, March 8, at the Farm Bureau office. State Sen. John O. Jones (R-Mt. Vernon) and state Rep. John Cavaletto (R-Salem) will attend. Call the Farm Bureau office for more information. • Farm Bureau and Salem Township Hospital will sponsor a wellness seminar Wednesday, March 10, at the Farm Bureau office. The following tests and costs will be available to members: executive 3 blood profile, $35; prostate specific antigen test, $25; cholinesterase, $65; and mammogram, $80. Call between March 10-17 for the mammogram test to receive the discount. Call the Farm Bureau office at 618-548-2100 for reservations or more information. • Farm Bureau will host a 35-cent breakfast to celebrate National Ag Week from 6 to 9 a.m. Wednesday, March 17, at the Farm Bureau office. Tickets are available at the Farm Bureau office or from a director. No carryouts. The Illinois Farm Bureau RFD Network will have a remote broadcast during the breakfast. Call the Farm Bureau office for more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday, March 17, at the Farm Bureau office for a corned beef and cabbage lunch. Cost is $8. Kris Reynolds, Montgomery County Farm Bureau’s Young Leader chairman, will talk about the Young Leaders tour to Washington state. Call the Farm Bureau office at 217-532-6171 for more information. EORIA — Joe Varda, Mid-Illini Educational Consultants, will instruct a commercial driver’s license training course at 9 a.m. Wednesday, March 10, at the Farm Bureau office. Cost is $45 for members and $55 for non-members. Call the Farm Bureau office at 686-7070 for reservations or more information. • Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will
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be the speaker at a crop insurance meeting at 9 a.m. Thursday, March 11, at the Farm Bureau office. Call the Farm Bureau office for reservations or more information. TEPHENSON — Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker at an On-theRoad transportation seminar at 12:30 p.m. Monday, March 15, at the Farm Bureau office. Call the Farm Bureau office for more information. • Stroke Detection Plus will perform screenings from 9 a.m. to 4:30 p.m. March 17-18 at the Farm Bureau office. Members will receive a discount. Call 877-7328258 for an appointment or more information. • Farm Bureau will sponsor a bus trip Friday, March 19, to the “Gathering of the Green” in Davenport, Iowa. It will feature a trade show, industry vendors, and educational workshops for John Deere collectors, restorers, and enthusiasts. Call the Farm Bureau office at 815232-3186 for reservations or more information. • Doug Sommer will conduct a defensive driving class from 10 a.m. to 3 p.m. April 78, at the Farm Bureau office. Lunch will be provided. Call the Farm Bureau office at 815232-3186 for an appointment or more information. OODFORD — The annual legislative coffee meeting will be at 9:30 a.m. Monday, March 8, at the Farm Bureau office. U.S. Rep. Aaron Schock (RPeoria) and state representatives will attend. Call the Farm Bureau office at 4672347 for more information.
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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.
NOTICE OF ANNUAL MEETING COUNTRY MUTUAL INSURANCE COMPANY TO ALL POLICYHOLDERS AND MEMBERS: Notice is hereby given that the annual meeting of the members of Country Mutual Insurance Company will be held in the Illinois Agricultural Association Building, 1701Towanda Avenue, Bloomington, Illinois on Wednesday, April 21, 2010 at 1:00 p.m., to receive, consider, and if approved, confirm and ratify the reports of the officers and of the Board of Directors of the Company for the year ended December 31, 2009, to elect 20 members of the Board of Directors to serve for a term of one year, and for the transaction of such other business as may properly come before the meeting. Elaine Thacker Kathy Smith Whitman Assistant Secretaries
FarmWeek Page 14 Monday, March 1, 2010
PROFITABILITY
Don’t forget about your soybeans after planting Large farmer returns possible with proper bean management BY LANCE RUPPERT
As spring draws nearer, final decisions will be made on your 2010 crop and the management practices you will employ to protect the genetic potential of the seed you purchase. Lance Ruppert That is something we all must remember. The genetic potential of your corn and soybean seed is at its highest level while the seed is still in the bag.
After you plant the seed, Mother Nature and other forces are at work to decrease that seed’s yield potential. So what can we do to protect it? The use of solid weed, insect, disease, and stress management tools all can help protect corn yield. But let’s take a minute to remember that other crop — soybeans. Adding a few management practices to your soybean fields can pay big dividends in protecting yield and adding returns to your bottom line. Using pre-emergence residual herbicides has consistently
shown increased soybean yields when used in a two-pass program. Benefits from residual herbicides are seen in both RoundUp Ready and Liberty Link systems. The increase in hard-to-control weed species also has given a renewed focus on residual herbicides and resistance management. The use of a preemergence residual also can be beneficial in providing a wider window, if the weather doesn’t allow, for timely post herbicide applications. Applying a pre-emergence residual herbicide and protecting three bushels per acre of yield could equal a return on investment of more than 300 percent vs. not using a residual.
Although the move toward using fungicides on soybeans has been slower than in corn, the potential benefits are the same. The proper timing of application is one key to success when using fungicide on soybeans. Many soybean seed production acres effectively use fungicides to increase yields and seed quality. Again, by protecting three bushels per acre of yield by using a fungicide could equal more than a 250 percent return on investment. While one insect species may not be at economic thresholds, the combination of small numbers of many species may hurt soybean yields.
The use of insecticides proactively may have the potential to increase yields. The potential return on investment for protecting one bushel per acre by using a foliar insecticide could be more than 200 percent. Increasing management levels on soybean production can give growers huge rewards, as the return on investment potential is great. Look to your local FS crop specialist to help you capitalize on opportunities to protect yield and increase your profits. Lance Ruppert is GROWMARK’s crop protection marketing manager. His e-mail address is lruppert@growmark.com.
Forecast much improved for U.S. livestock industry BY DANIEL GRANT FarmWeek
A number of economic indicators suggest livestock producers in 2010 could regain some of their losses from recent years. USDA last month projected a decline in meat production, an increase in exports, and lower feed costs this year could add up to higher livestock prices. “We’re heading in the right direction,” said Ron Plain, ag economist at the University of Missouri in Columbia.
USDA last month projected commercial production of pork this year could decline by 2 percent while beef production could fall by more than 1 percent. Meanwhile, exports of both meats were projected to increase this year by 9 percent to totals of 4.5 billion pounds of pork and 2.04 billion pounds of beef. The February cattle on feed report showed the inventory of all cattle and calves on feed (11 million) was down 3 percent compared to last year
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 $32.37-$44.00 $39.57 n/a n/a n/a n/a This Week Last Week 17,798 23,900 *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 $68.18 $63.19 $50.45 $46.76
Change 4.99 3.69
USDA five-state area slaughter cattle price Steers Heifers
This week $88.24 $91.00
(Thursday’s price) Prv. week Change $90.81 -2.57 $90.83 0.17
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 101.38 101.62 -0.24
Lamb prices Confirmed lamb and sheep sales This week 460 Last week 354 Last year 380 Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $130; 110-130 lbs., $110. Good and choice 1-2: 60-90 lbs., $145. Slaughter Ewes: Utility and good 1-3: $56-$59. Cull and utility 1-2: $56.
Export inspections (Million bushels)
Week ending Soybeans Wheat Corn 02-18-10 35.0 17.7 34.2 02-11-10 38.7 16.1 24.8 Last year 30.6 10.3 28.5 Season total 1058.9 599.5 756.4 Previous season total 795.1 766.5 743.1 USDA projected total 1400 825 2000 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
‘If the economy doesn’t get any worse, we ought to have higher prices.’ — Ron Plain University of Missouri ag economist
while placements in feedlots (1.83 million) were down 2 percent. The 2009 calf crop was estimated at 35.8 million head, which would be the smallest calf crop since 1951, according to USDA. Meanwhile, the most recent hogs and pigs report showed the U.S. swine inventory in December (65.8 million head) was down 2 percent from last year while the breeding herd (5.85 million head) declined by 3.5 percent. “Clearly producers have grown tired of losing money,” Plain said. “Production of all four major meats (beef, pork, chicken, and turkey) was down last year for the first time (as a group) since 1973.” USDA projected steer prices this year could average $85 to $91 per hundredweight compared to $82.68 last year, which was the lowest average price since 2002. USDA forecast hog prices this year of $46 to $49 per hundredweight compared to an average last year of $41.24, which was the lowest average price since 2003. “If the economy doesn’t get any worse, we ought to have higher prices,” the economist said. Plain predicted hog producers this year could break even. He believes producers may need to trim the sow herd by
another 3 percent, though, before profits return on a consistent basis. USDA also projected 2010 will be a better year for dairy producers. The all-milk price, which was below $12 per hundredweight from Febru-
ary to August last year, this year was projected to average $16.20 to $16.90 per hundredweight. The Class III milk price for 2010 was predicted to average $14.90 to $15.60 per hundredweight.
FarmWeek Page 15 Monday, March 1, 2010
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Planting fears escalating Over the past week, concern about a wet spring and potential planting problems again started to creep into both the corn and wheat markets. With the calendar rolling over from February into March, the concern probably will escalate. The anxiety about this spring has been elevated by last fall’s heavy rains and this winter’s equally heavy snows. At this writing, snow is still on the ground north of a line stretching from Kansas City to the Ohio River Valley, with some snow still in places south of that. Snowcover is heavy north of a line stretching from Omaha to the southern tip of Lake Michigan. And, it’s especially heavy from northern Iowa into the Dakotas. In northern South Dakota and two-thirds of North Dakota, the snow depth is still more than 20 inches. The water equivalent of snow from northwestern Iowa into North Dakota is in excess of 4 inches, with a few spots having more than 6 inches of snow/water equivalent. At the same time, soil moisture is above normal in nearly every Corn Belt state from Illinois west, as well as Northern Plains states. From Cen-
Basis charts
tral Illinois to central Iowa and in the eastern third of South Dakota, soil moisture is at the 99th percentile of historical amounts. Soil moisture in those locations is 3 to 4 inches more than normal for this time of year. The latest forecast for March calls for normal to cooler-than-normal temperatures over much of this area, with precipitation expected to be mostly normal. Illinois has a chance of seeing slightly below-normal rains, with the already drier-than-normal Indiana and Ohio expected to have normal to below-normal precipitation. In summation, where there’s still a lot of snow, the soils are wet, and where there’s not a lot of snow, soils are drier. And March forecasts suggest it may remain that way. Hence, the spring anxiety for corn, soybeans, and especially spring wheat. In the end, though, we wonder if the current anxiousness about having the third consecutive troublesome spring will prove to be more than an early “crop scare” for corn and wheat, along with the associated potential for the larger soybean plantings that many analysts currently foresee. However, price cycles tend to tell us that this early anxiousness about planting may be all for naught. Price cycles, especially those for corn and wheat, suggest prices will feel downward pressure starting as early as late April or early May. The primary reason we’d expect corn, wheat, and even soybean prices to slip lower through the month of May would be good planting progress. It may not be any faster than normal, but the downward drag of those cycles suggest it’s unlikely to be late. And, given the good soil moisture to start this year, a reasonable good planting pace should tend to enhance the possibility of seeing good corn, soybean, and wheat crops. AgriVisor endorses crop insurance by
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
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Cents per bu.
2009 crop: Technical features still indicate prices should move higher in the short-term. If May futures can move above $3.89, it would open the door for a test resistance at $3.94 to $3.97. Increase old-crop sales to 60 percent if May rallies to $3.95. We may boost sales even more; check the Cash Strategist Hotline frequently. Basis may not improve much until late April/early May when farmers turn their focus to planting. 2010 crop: December futures have hit our $4.10 target, triggering a 20 percent new-crop sale. Use rallies for catch-up sales. Plan additional sales by early April. Fundamentals: Fundamentals continue to be mostly lacking in the corn market, but some early chatter is starting to circulate about possible spring planting delays. While we are still weeks away in major Midwestern areas, fields are saturated from the wet fall and snowy winter. It will not take much moisture this spring to cause delays.
Soybean Strategy 2009 crop: The soybean market responds to the whims of the outside markets as much as anything else, but South American factors are becoming an increasing drag. Boost sales to 50 percent if May futures reach $9.90. The price and/or amount could change at any time; check the Cash Strategist Hotline frequently. 2010 crop: Leave an order to make a 20 percent sale if November futures reach $9.59. Check the Cash Strategist Hotline occasionally for changes. Fundamentals: Talk of even larger South American crops seems to prevail, even though some of the yield reports from the early harvest in Brazil suggest otherwise. Heavy rains have dominated Argentina, complicating fungicide applications for rust, but a drier pattern appears to be setting in for the short term. Export sales may
have been lackluster last week, but that was the Lunar New Year holiday in China.
Wheat Strategy 2009 crop: Wheat prices continue to trade between the 20- and 50-day moving averages. Recent activity still suggests a short-term bottom has been established. Downside risk should be limited below the $4.92 level on Chicago May futures. Make a 10 percent sale if that contract hits $5.26, bringing the total to 90 percent.
2010 crop: Use a rally to $5.40 on Chicago July futures to make an initial 25 percent sale. Check the Cash Strategist Hotline daily as this target could be adjusted at any time. Fundamentals: The soft red winter wheat crop in the Midwest continues to struggle. The crop was late getting in the ground because of an extremely wet fall, resulting in a 29 percent decline in plantings. The winter months with the exceptional wet and cold have not provided any relief.
FarmWeek Page 16 Monday, March 1, 2010
PERSPECTIVES
Legislative redistricting is a good start The recent primary elections once again Further, the delegates said the districts should demonstrated the importance of voter participabe compact, contiguous, and impartial to political tion in the election process. Hopefully, you also party and incumbency. They also felt that the disknow how important it is to remain engaged in trict lines should follow county, township, and issues of importance once those elected officials municipal boundaries whenever possible. take office. IFB leadership wasted no time in developing an When elected officials lack the action plan to address this time-sensitive issue. desire or effort to make necesWorking with other voter groups, IFB will support sary changes to meet constituent efforts to collect signatures for a ballot initiative to amend the Illinois Constitution to address legislaconcerns, voters must urge those tive redistricting. elected officials to address the We need your help in securing signatures to get problem. Recently, it has become this needed reform on the November ballot for increasingly obvious that someIllinois voters to take charge on this important thing must be done to correct the issue. process for legislative redistrictDAVID Contact your county Farm Bureau office for ERICKSON ing. more information or visit the website Every 10 years the U.S. Census {www.ilfairmap.com}. We need 500,000 signatures is conducted and the results of by April 1, 2010. that census are used to determine the need for I know this is a large effort to accomplish action new legislative district maps for state and federal Terry Rosenberger, left, Jackson County Farm Bureau leader and that will not immediately solve any of the current elections. The Illinois House and Senate are Southern FS board member, signs a petition to put the Fair Map empowered by the Illinois Constitution to devel- Amendment on the November ballot. Kayla Arnolts, Illinois Farm Bu- problems facing our state. We must, however, show op these new legislative maps. reau administrative assistant, explains the process, intended to our elected officials that we voters no longer are The current process for drawing these maps change the method used to draw state legislative districts, to Macon willing to wait for them to talk about our problems, usually has resulted in maps that favor incumCounty Farm Bureau leader Emmett Sefton. Voters’ signatures were but that we will act to solve problems ourselves. We do not like the manner in which they have bents, a political party, or both. collected last week during the Farm Bureau Governmental Affairs Having experienced the new maps drawn fol- Leadership Conference in Springfield. Last week Senate Democrats handled their responsibility of redistricting, so we lowing our last census in 2000, members of our introduced a constitutional amendment to change the redistricting need to show them that we know how to fix the problem. It may not be the answer to all of our Illicounty Farm Bureau (Knox) felt it important to process. (Photo by Kay Shipman) nois government problems, but it is a good start. begin to address concerns over the new maps as the delegates agreed. well as the process used to get there. The delegates supported an unbiased third-party David C. Erickson farms with his family in Knox County We submitted a policy resolution to the Illinois and serves on the Knox County Farm Bureau Board. His eFarm Bureau voting delegates hoping to gain support approach that does not favor political affiliation or mail address is nancye@winco.net. for reform of the legislative redistricting process, and prior election results.
Going to college?
Connect with your future career at College of ACES Life as a University of Illinois, College of Agricultural, Consumer, and Environmental Sciences (ACES) senior is pretty good. In four short years, I have found my dream career, experienced once-in-a-lifetime internships, and networked with amazing people from all around the globe. Do I really have to graduate? Coming from a farm, I will admit that CARLY was I worried RAKES about attending such a large university. But the College of ACES’ family atmosphere made me feel right at home with its personal, world-class professors; many opportunities; and beautiful campus. Our ACES Student Council hosts a monthly “Lunch with the Deans,” at which students catch up with the deans of the college and grab a bite to eat. I could not imagine college life anywhere else, and am certain I would not have had nearly the experience at another university. Because of my passion for the College of ACES, I enjoy telling others about the college
and its many benefits, which is why I hope to see high school students and their families here on campus for the sixth annual ExplorACES on March 12-13. Before the student groaning begins and the thought of “Not another open house,” surfaces, let me assure you that ExplorACES is something entirely different. ExplorACES is an event for students, hosted by students, with the help of some dedicated advisers. Students and their families will experience more than being handed a brochure at a booth. We want to help you share in our student experiences here. At ExplorACES, you will find everything from the Illini Pullers’ “tricked out” tractor to Professor Dianne Noland’s horticulture students designing flower arrangements to their favorite iTunes playlist — plus the famous fistulated cow! This year, we have the upbeat theme “Get Synced,” through which you can connect with your future. At ExplorACES, visitors have the opportunity to interact with current students and faculty to get questions answered about housing, scholarships, majors, or just college life in general. We also will have a food tent, where you can take a
break and indulge in some award-winning chili and other delicious food. One of the most important aspects of this event is that students run it. A group of dedicated College of ACES students started planning back in September. We are college students and know the questions incoming students have about college. We no doubt remember all the questions our parents had. You will get honest answers from students about life here at the U of I. Come to this event with an open mind and willingness to learn about all the majors ACES offers. When I was in high school, I came to my first ExplorACES, and I was certain I knew what my major was going to be. But I changed my major and couldn’t be happier. Visit all the exhibits, ask questions, and learn as much as you can. This is one weekend in which you can have all your questions answered by current students, professors, and even deans of the college. Do not limit yourself — keep all opportunities open. I could go on and on about the College of ACES, but I could never do it justice. This is something you must experience for yourself. After visiting our
Bruce Branham, left, crop sciences professor at the University of Illinois’ College of Agricultural, Consumer, and Environmental Sciences (ACES), chats with visiting high school students and parents at last year’s ExplorACES. (Photo courtesy of the U of I College of ACES)
campus, I am certain you will be a believer in our family atmosphere and the success of our students and faculty. As a college senior preparing to graduate, I will have more than just a degree when I interview for jobs. I also will have experience that has taught me important lessons I couldn’t have learned from a text book. There is something for everybody here, regardless of whether you
come from a farm. Be sure to mark March 1213 in your calendars. Bring the family, and come see for yourself what the College of ACES is all about! Carly Rakes, Auburn, is a senior in agricultural communications with a concentration in news-editorial within the College of ACES. After graduation, she hopes to pursue a master’s degree in the department of advertising.