CONGRESS LIKELY WILL be embroiled in the health care debate “until the snow starts flying,” and that could halt climate debate until the 2010 session. .......2
WAL-MART SHOPPERS are finding more Illinois-grown fruits and vegetables on store shelves and that is pumping more dollars into the Illinois ag economy. .................9
A SOUTHERN ILLINOIS soybean grower suggests an infusion of high-profile capital may be just what is needed for the rail industry. .......................................13
Monday, November 16, 2009
Two sections Volume 37, No. 46
Delays, deviations may jeopardize EQIP contracts Farmers advised to consult NRCS BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
Farmers who may not be able to fulfill their Environmental Quality Incentives Program (EQIP) contracts need to talk with their district conservationists or face the possible loss of those contracts and perhaps face penalties, according to Ivan Dozier the Natural Resources Conservation Service (NRCS) assistant state conservationist for programs. “Anytime you deviate from the schedule (of conservation practices to be installed), you should go to the local NRCS and find out what the impact will be,” NRCS’s Ivan Dozier told FarmWeek. “The way it’s been this year, the concern is there might be significant impacts,” Dozier said. Farmers especially need to
be vigilant if they are within the first 12 months of an EQIP contract or if their contract will expire before they can complete all the practices specified, Dozier warned. “The first 12 months are critical. You have to start something (toward installing a practice),” Dozier said. “If you don’t start (work), not necessarily finish, that’s a regulatory violation and could cause the contract to be terminated, unless you receive a waiver from the state conservationist,” he added. Dozier explained waivers would be granted in situations that are out of a farmer’s control, such as weather-related delays. If a farmer doesn’t contact NRCS within the first 12 months, the state NRCS has no flexibility and cannot issue a waiver after that date, he emphasized. Another critical period is near the end of the contract. If a contract expires before all the specified practices are completed, the farmer would be in violation of the contract. (There are 2,831 active EQIP contracts in the state). In both situations, a farmer needs to contact the county district conservationist, Dozier said. A farmer may ask for a contract extension to be able to complete all the required work before the contract expires, he added.
If a farmer has not started conservation work within the first 12 months, he may have to pay “liquidated damages,”
which may be up to 10 percent of the face value of the contract. However, liquidated damages may be waived if the
farmer made a good-faith effort, Dozier said. Farmers who fail to complete work before a contract expires may have to repay some or all of the payments they received, which will be determined on a case-by-case basis, Dozier explained. “The expectation is for (EQIP) participants to do everything in their contracts according to schedule, and
we’ll pay the amount specified in the contract,” Dozier said. Dozier advised farmers to take their time considering and planning the conservation work stipulated before they sign an EQIP contract. “Planning is free and flexible, and (EQIP) signup is continuous. Get a good plan and think about it, then you won’t have to modify it,” he concluded.
WAITING FOR LOAD
Rod Fluegel of Minier in Tazewell County waits for his uncle, Robert Dietrich, also of Minier, to arrive with another hopper full of soybeans. Fluegel reported 120 acres of soybeans had been harvested by early last week with an average moisture content of 12 percent and an average yield of 60 bushels per acre. They planned to begin corn harvest last week. Good weather allowed farmers to make serious headway on corn and bean harvest in the state. See story on page 7 for an update. (Photo by Ken Kashian)
Mere estate tax extension deemed ‘bad, bad, bad’ BY MARTIN ROSS FarmWeek
Substantive estate tax reform is necessary in 2009 to head off the potential consequences of a simple one-year extension of current tax provisions, an American Farm Bureau Federation (AFBF) policy specialist warns. Even with key health care issues hanging over the post-Thanksgiving congressional calendar (see story on page 2), Illinois Farm Bureau National Legislative Director Adam Nielsen expects lawmakers to approve some sort of estate tax fix to avert scheduled elimination of the tax in 2010 and its reinstatement at pre-2002
rates the following year. Currently, a $3.5 million-per-person tax exemption is in force for farm heirs. While Farm Bureau’s ultimate goal is repeal of the estate tax, the organization supports a current proposal to phase in a $5 million individual/$10 million couple exemption and a top tax rate of 35 percent. After a 10-year phase-in period, the exemption would be indexed to inflation to track more closely with the economy. Nielsen noted both Republican and Democrat lawmakers are in favor of a “permanent” estate tax fix. The other major option being touted on Capitol Hill
FarmWeek on the web: FarmWeekNow.com
is straight one-year extension of the current exemption. “This is bad,” AFBF’s Pat Wolff told FarmWeek. “If they only do a year, you go from repeal to having a $3.5 million exemption — that’s a huge (federal) revenue raiser. Then you go into the next year, and the exemption is $1 million. “To get back from $1 million to $3.5 million, you have to offset — you have to pay for it just to get back to where you were the year before. It’s bad, bad, bad. “Even worse, (Congress) could do something retroactive (to recover ‘lost’ revenues).”
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, November 16, 2009
Quick Takes
EMERGING ISSUES
Federal health care debate continuing into December BY MARTIN ROSS FarmWeek
Flags at half staff because of the shootings at Ft. Hood, Texas, adorned Memorial Drive at Mulberry Grove Cemetery in Bond County last week during Veterans Day, one of many observances honoring veterans that day, including the Pizzas 4 Patriots activity in the Chicago area described below. (Photo by Ken Kashian)
VETERANS RECEIVE ‘SLICE OF HOME’ — Veterans around the country were served a “slice of home” last week in honor of Veterans Day. America’s dairy farmers and the non-profit organization Pizzas 4 Patriots delivered pizza and milk to Veterans Administration hospitals in Chicago and other U.S. cities to honor those who served this country, the Midwest Dairy Association reported. “Dairy farmers have a long-standing tradition of supporting our local communities, so we are pleased and honored to join the nation in celebrating the service and sacrifice of America’s veterans,” said Scott Halpin, a dairy farmer and Illinois Farm Bureau district director from Gardner. Pizzas 4 Patriots — a program conceived by Kent Evans, the 15-year-old son of a retired Air Force master sergeant from Elk Grove — is in its second year and aims to deliver a “slice of home” to U.S. service men and women domestically and abroad. Mike Kenyon, a dairy farmer and IFB district director from South Elgin, was pleased to be involved the effort. “I think dairy farmers are extremely proud of being able to do this for Veterans Day,” he said. QUINN SIGNS ENERGY PROJECTS BILL — Gov. Pat Quinn last week signed legislation that provides a statebacked guarantee supporting construction of energy-efficiency projects. It expands a law signed in July that created the same guarantee for renewable energy and clean-coal projects in the state. The legislation will allow the state and the Illinois Finance Authority (IFA) to make up to $3 billion in guaranteed energy project financing available for qualified renewable energy and clean-coal projects. In addition, the law increases the state and IFA’s loan guarantee from $75 million to $225 million for agricultural businesses. It also provided guarantees for qualified renewable energy projects such as wind, biodiesel, or biomass initiatives related to agriculture.
(ISSN0197-6680) Vol. 37 No. 46 November 16, 2009 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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The CBO pegged the cost of revised House health legislation passed earlier this month at more than $1 trillion. The plan would pay for extended coverage options primarily through a surtax on households with more than $500,000 in annual income. American Farm Bureau Federation analyst
Congress likely will be embroiled in the health care debate “until the snow starts flying,” Illinois Farm Bureau National Legislative Director Adam Nielsen predicted Friday. That means contentious climate debate could be put on ice until the 2010 session. In an RFD Radio‘ From where I’m sitting, I think FarmWeek interview, Senate Majority Leader there’s an awful lot we agree on Dick Durbin said Senate and we should move forward on.’ health debate likely would begin in earnest — Sen. Dick Durbin after Thanksgiving. Springfield Democrat Senate leaders last week were awaiting a Congressional Budget Office (CBO) analysis of Pat Wolff stressed Senate proposals were in a draft proposals to determine whether they state of flux. But a Senate Finance Committee would be at least deficit-neutral. According to proposal to boost coverage through regional the Springfield Democrat, that is a key presiden- “co-op” pools has been “pretty much trashed,” tial directive. and Senate Majority leader Harry Reid (D-Nev.) While the House recently approved its own reportedly has asked the CBO to “score” Senpackage, including a controversial governmentate proposals including a public option, Wolff managed “public option,” the Senate is divided said. over strategies for extending health coverage to How a Senate-style public option would currently uninsured Americans. be structured remains up for debate. Some Durbin sees key challenges ahead, despite have proposed “triggering” the option only consensus over issues such as consumer if congressional cost-control measures fail choice and elimination of pre-existing health to make health care affordable for conconditions as a key consideration in individual sumers. coverage and concerns over spiraling health The revised House plan offers at least one costs. key improvement over original proposals in “The public option has been a focus of a lot terms of reimbursements for rural providers of debate,” he acknowledged. “The other thing under a public option. is how to pay for it: How would you tax busiConservative “blue dog” Democrats connesses or people in America to come up with vinced colleagues to provide doctors negotiated the money to make sure we can help those low- rates for services similar to rates under private er-income categories pay their health care preinsurance vs. formula Medicare rates that tend miums? to favor urban providers. “But from where I’m sitting, I think there’s “This is much better for rural areas,” Wolff an awful lot we agree on and we should move told FarmWeek. “The reimbursement under forward on. If we don’t, this current system is the public option was written to level the playgoing to eat us alive.” ing field for rural America.”
Harvest demand outstripping the existing propane supplies BY DANIEL GRANT FarmWeek
Now that harvest has finally kicked into high gear, farmers are running into a new obstacle that could limit their ability to harvest corn. The heavy demand for grain drying services has produced temporary shortages of propane in some areas. “Demand is outstripping the distribution network’s ability to supply it (propane),” said Chris Salrin, director of propane operations for GROWMARK. In just a week’s time at the beginning of this month, Illinois farmers harvested 12 percent of the corn crop and 34 percent of all the state’s soybeans. The sudden influx of wet grain pushed demand for
grain drying services and propane to levels unseen in some time. The distribution system “just cannot move it fast enough to keep up with grain drying demand,” Salrin said. “The ironic thing is the inventory (of propane) at the hubs is in good shape.” A large portion of propane that is sold in Illinois originates via pipeline from Kansas. GROWMARK currently is working to bring additional supplies into Illinois from a pipeline that originates in Texas, according to Salrin. “We’ve very focused on meeting the supply needs of our members,” he said. “We’re looking at alternative supply sources.” Propane supplies likely will
remain an issue for at least the next two weeks as just 37 percent of the nation’s corn crop was harvested as of the first of last week. “With only about one-third of the corn crop out we’ve still got a lot to go,” Salrin said on Friday. “I think we’ll see a tremendous amount of demand the next 10 to 15 days.” Ironically, while rain played a large role in keeping moisture levels in corn so high this fall, enough rainfall to slow harvest might aid in relieving the temporary propane shortage if graindrying demand at elevators is reduced. Salrin said propane prices should remain firm, and a major run-up in prices is unlikely.
FarmWeek Page 3 Monday, November 16, 2009
INPUTS/ OUTPUT
IT’S PECAN TIME
Ralph and Karen Voss and their family members grow and sell about 10 varieties of pecans near Carlyle in Clinton County. The Vosses, believed to be the largest commercial pecan growers in the state, saw their pecan yield this year drop to well below average. That was in part due to it being an off year for pecan tree production (pecans produce more heavily in alternate years) and this year’s disease-promoting wet weather. They are anticipating 10,000 to 15,000 pounds of pecans this year, com-
House ‘security’ bill threatens input dealers, growers BY MARTIN ROSS FarmWeek
Congressional homeland security measures reportedly threaten the economic security of rural agribusinesses and the growers who depend on them. The House-approved Chemical Facility Anti-Terrorism FarmWeekNow.com Act aims to prevent terrorist Listen to Jean Payne’s comactivities at domestic chemiments on how the chemical secal facilities. curity bill will impact ag busiHowever, the American nesses at FarmWeekNow.com. Farm Bureau Federation (AFBF) and others told lawmakers the measure would “jeopardize the availability of widely used, lower-cost sources of essential plant nutrient products or certain agricultural pesticides.” At issue are provisions requiring protected facilities to adopt “inherently safer technology” (IST) that minimizes terrorism risks. Under the measure, the U.S. Department of Homeland Security (DHS) could dictate “safe” practices or even product substitutions based on a plant or dealer’s location or proximity to key population centers. Most anhydrous ammonia facilities are under DHS jurisdiction, Illinois Fertilizer and Chemical Association (IFCA) Executive Director Jean Payne noted. Under the House plan, DHS would consider the safest product options — “not the most affordable and certainly not the most effective,” said Payne. “If you’re a dealer offering 28 percent liquid or dry fertilizer or ammonia, and you’ve been deemed by Homeland Security to be a threat, they could say you have to offer products that are inherently more safe,” Payne told FarmWeek. “Therefore, ammonia would be out. “We have a few ag retailers in a ‘Tier 4’ category for facilities that would have to take extra security measures. If (Congress) moves ahead with this inherently safer technology concept, it’s going to be very problematic for those facilities to continue to offer ammonia. “That’s going to put them at a huge competitive disadvantage. The farmers who would have relied on that dealer for ammonia either are not going to have it available to them or will have to bring it in from a more distant location.” The Senate has yet to introduce companion legislation. IFCA and others were able to keep IST provisions out of original homeland security legislation. Payne noted a “close” 230-193 vote on the new proposal, which was opposed by House Republicans and 21 Democrats including U.S. Reps. Debbie Halvorson of Crete and Phil Hare of Rock Island.
pared to 80,000 pounds last year. The family normally would be finishing pecan harvest this time of year, but the wet ground has kept them out of the pecan groves, and they had only about 2 percent of the crop har vested by last week. They produce pecans from 1,500 trees on 110 acres. The Vosses sell whole, cracked, and shelled pecans from their farm. They also sell pecans as seed stock to individual customers and state nurseries. (Photos by Ken Kashian)
FutureGen proposal seen as ‘opportunity’ for Illinois A proposed deal between the State of Illiposed greenhouse emissions caps would impose nois and a prospective Mattoon power facility a particular burden on Midwest coal-powered offers an “opportunity” for consumers and tax- utilities. Underground sequestration of carbon payers faced with a potential new carbon econdioxide at FutureGen would put the Mattoon omy, according to an East-Central Illinois ecoplant — and Illinois — in a position to offset nomic development specialist. higher power costs resulting from cap and The U.S. Department of Energy (DOE) is trade. expected soon to reach a decision regarding “At some point, this could be even lowerFutureGen, a priced power if 275-megawatt, there were a zero-emissions value to carbon coal — if someresearch/power happened ‘ A t s o m e p o i n t , t h i s c o u l d b e eve n thing facility that at the national lower-priced power.’ would capture level related to carbon dioxide carbon manfor storage — Angela Griffin agement or Coles Together within Illinois’ mitigation,” Mt. Simon Griffin told Sandstone ForFarmWeek. mation. “It seems as DOE shelved though, at a FutureGen after minimum, a Coles County site was selected in 2007, but costs would be not much higher than an Springfield Democrat U.S. Sen. Dick Durbin average rate, and potentially lower. And and U.S. House colleagues helped revive federal there’s a 2 percent cap (over rates for cominterest in the project. peting electricity) written into this legislaIn an RFD Radio-Far mWeek interview, tion, so even in a worst-case scenario, they Durbin said he saw a “good chance” DOE could never be higher than 2 percent of marwould green-light FutureGen by Jan. 1. ket rates.” The senator, who discussed the project Energy Secretary Stephen Chu has indicated recently with Gov. Pat Quinn, hailed its DOE would be willing to invest an estimated potential to render coal-based greenhouse $1.1 billion in FutureGen development if the emissions harmless and generate “goodFutureGen Alliance, an international consorpaying jobs.” tium spearheading the project, supplies design The Illinois General Assembly’s proposal to and updated cost estimates for the Mattoon purchase all initial electricity generated by location and added research on its sequestration FutureGen has raised some concerns about the capabilities. project’s potential budgetary and taxpayer In addition, DOE has recommended the impacts. alliance increase its membership from roughly a However, supporters say the Illinois deal dozen partners to 20, each contributing $20 would help FutureGen qualify for more than $1 million to $30 million to boost private project billion in federal grants to help finance its confunding. struction, and Angela Griffin, CEO with the Griffin reported the FutureGen Alliance is economic development organization Coles on track with “self-imposed” deadlines for Together argues Illinois consumers could bene- submitting necessary DOE data. “They are, as fit from the arrangement under a “cap-andwe speak, meeting with potential new Alliance trade” scenario. members,” she said last week. — Martin According to many analysts, U.S. House-pro- Ross
FarmWeek Page 4 Monday, November 16, 2009
AROUND ILLINOIS
State recruiting ag teachers through video and website BY KAY SHIPMAN FarmWeek
A roomful of East-Central Illinois representatives listen as USDA Rural Development specialist Susan Petrea describes programs and funding available through her agency. Illinois Rural Development Director Colleen Callahan last week held the first of four regional meetings at Parkland Community College, Champaign. (Photo by Kay Shipman)
Illinois ag educators are reaching out to potential ag teachers through a teen-friendly video and website at {www.TeachAg.net}. The Illinois Facilitating Coordination in Agricultural Education (FCAE) team designed the website to provide students with career-related information and answer their questions, according to Mindy Bunselmeyer, FCAE program adviser. “As that (website) was coming along, we thought it would be nice to have a video,” Bunselmeyer added. The group was inspired by a California ag teacher video that Bunselmeyer had seen at a National Agriculture in the Classroom conference. The video, entitled “Inspiring Minds to Grow,” was filmed last fall and launched earlier this year. It features brief interviews with high school ag instructors, university ag education professors, college students majoring in agriculture education, state FFA officers, and high school ag students. The website provides information on careers related to ag education, career exploration opportunities for students, and scholarships. It also includes teacher testimonials and information on teacher salaries. Students may complete online requests for additional general information or specific information from the four state universities with ag education programs. The video is posted online at {www.TeachAg.Net}. Each district FCAE program adviser also has a DVD of the recruitment video available for loan to interested groups, she added. For more information, contact the FCAE state office at 217893-0091.
Illinois Rural Development offering Pioneering food marketing millions for eligible rural projects Currently, Illinois Rural Development’s business program has $45 million available; community program, $6.4 million; waste and water treatment, $14 million; and rural housing, $224 million. With millions spent and millions more Ruth Stauffer, executive director of the available, USDA Illinois Rural Development DeWitt Development Council, attended to is encouraging rural leaders to take advantage learn about program opportunities for comof a unique opportunity. munities in her county. “This is an incredible opportunity for all Stauffer said the county recently worked of us,” Colleen Callahan, state Rural Develwith Rural Development on a grant to estabopment director, told a packed meeting room lish a revolving loan fund. last week. “We have funding available right Ralph Kirk with HealthCom, based in Sulnow that we’ve never had before.” livan, said his company works with rural hosThat’s because federal stimulus funding pitals to provide technology for rural senior has significantly increased the funds available citizens. The monitors and other devices help rural seniors ‘ R u ra l D eve l o p m e n t d o e s h e l p live in their homes, people, and we have the potential allowing health care professionals to help even more people.’ to check the seniors’ health — Colleen Callahan conditions from Illinois Rural Development director transmitted data, Kirk explained. Callahan said she was pleased by for several programs; however, that money the size of the crowd and noted many peomust be allocated by September 2010, Callaple stayed to ask questions and take program han said. applications. Callahan and three Rural Development “Rural Development does help people, and specialists spoke at the first of four regional we have the potential to help even more peomeetings she has scheduled. ple,” she said. The crowd at Parkland Community ColThe remaining regional meetings will run lege, Champaign, included engineers, from 10 a.m. to noon. bankers, business owners, village and town The dates and locations are: today (Monofficials, economic development staff, water day), Quincy, call 217-243-1535 for free officials, and individuals with non-profit reservations; Thursday, Edwardsville, call organizations. 618-993-5396; and Nov. 23, Kankakee, call For fiscal year 2009, Illinois Rural Devel815-935-1177. opment allocated a total of $354.539 million For information about Rural Development through its business, community, waste and programs, go online to {www.rurdev.usda. water, and housing programs, according to gov/IL/} or call 217-403-6200. — Kay ShipCallahan. man
Regional meetings to provide overview
website continues to expand An online resource designed to connect farmers, distributors, buyers, and sellers recently was cited as one of the University of Illinois’ most prolific licensed technologies. The website, known as MarketMaker, got its start as an Illinois Council on Food and Agricultural Research (C-FAR) research initiative. MarketMaker’s scope has grown exponentially from its initial start in 2004 to where it now connects Chicago area consumers with Illinoisgrown meat products. The program’s searchable directory includes an array of food products and provides a quick and simple method to locate thousands of farmers and food-related ventures. The website is being used by an average of 65,000 people every month. There is no charge to use the MarketMaker site. “When C-FAR’s membership funded this initiative, it was highly forward-thinking on their part and on the part of the research team proposing the idea,” said Jerry Hicks, C-FAR chairman. “At that time, the interest in ‘buying local’ was very abstract; there was no meaningful mechanism for it to occur,” Hicks added. MarketMaker also has expanded to the national level. Currently, 15 states and the District of Columbia have obtained a license to use the MarketMaker website in their states. Additional states are considering a license. The U of I office of technol-
ogy management administers the intellectual property rights of the program and the licensing agreements. The issuance of licenses includes a fee paid by the state seeking to use the program. “MarketMaker is a fascinating model that is soundly based on research, public service, and our land-grant university’s mission,” said Lesley Millar, director of the U of I office of technology management. “Its practical world use is amazing. It is one of the most unique initiatives we have advanced,” Millar added. In addition to the funds received from licensing agreements, MarketMaker has been effective at leveraging outside funding, including money from the federal government. The MarketMaker program continues to evolve and expand. Recently, developers added a blog to include insights and expertise from the site’s participants. They also added a “Buyers-Sellers Forum,” which includes a calendar of product availability. Darlene Knipe, U of I Extension marketing and business development specialist who has been a driving force behind MarketMaker, credited C-FAR’s support for giving the online marketing resource a strong foundation. The Illinois MarketMaker website is {www.marketmaker.uiuc.edu}, and the national site is {http://national.marketmaker.uiuc.edu}.
FarmWeek Page 5 Monday, November 16, 2009
PRODUCTION
Refuge report ignores changing biotech issues BY MARTIN ROSS FarmWeek
A new report questioning producers’ GMO crop stewardship fails to consider rapid adoption of and “nuances” in refuge placement associated with newer Bt corn products, a Pioneer refuge specialist told FarmWeek. The activist Center for Science in the Public Interest (CSPI) charges that as much as 15 percent of the country’s corn acreage is out of compliance with insect refuge management (IRM) requirements. In the Corn Belt, the U.S. Environmental Protection Agency requires a 20 percent-per-farm non-Bt refuge to ensure continued insect resistance to biotech varieties. A non-Bt plot must be
planted a) within 1/2 mile of each corn borer-resistant Bt field, or b) in the same field as or adjacent to rootworm-resistant Bt hybrids, with a ditch or road separating the plot from other non-rootworm-resistant fields. Pioneer senior corn marketing manager Bill Belzer noted a key point of the CSPI report — “The majority of growers (a reported 86 percent in 2008) are in compliance.” He cited a higher rate of compliance with refuge size requirements, saying the major “gap” was in producer compliance with refuge distance requirements. Belzer noted “trait adoption is very rapid,” and with the advent of “triple stacks” (multi-trait varieties with herbicide tolerance and
Webinars to address wet corn strategies A pair of Internet-based seminars will be held in coming weeks by the University of Illinois to assist producers who have questions or concerns about handling wet corn. The first webinar will be held from noon to 1 p.m. Wednesday. The second will be from noon to 1 p.m. Dec. 3. Producers can get more information or sign up for either webinar at the website {http://events.idtg.uiuc.edu/wet_corn}. The webinars will address key concerns and questions such as how to price wet corn, status of molds and mycotoxin formation, storage alternatives, and the feed value of immature corn for livestock. A combination of late planting, a cool summer, and a record wet fall has produced a corn crop that often has tested at 25 to 30 percent moisture levels. The webinars will be coordinated by Mike Hutjens, U of I Extension dairy specialist, and there is no charge.
Auction Calendar Tues., Nov. 17. 10 a.m. 3055 +/- Ac. Kilton Farms, Inc., HILLSBORO, IL. Aumann Auctions. Tues., Nov. 17. 10 a.m. 240 Ac. Farmland. Chrystal F. Thompson Trust, PONTIAC, I L. Immke and Bradleys’ Auction Service. Tues., Nov. 17. 10 a.m. 575 +/- Ac. McLean Co. David Davis IV Trust, Commerce Bank, N.A. Trustee, HEYWORTH, IL. Farmers National Co. Wed., Nov. 18. 10 a.m. 199.79 Ac. McDonough Co. William E. Miller St. and James A. Miller, BUSHNELL, IL. Roberts Auction Service. Sat., Nov. 21. 10 a.m. Watch FOB Collection. Gorton Family, JACKSONVILLE, IL. Middendorf Bros. Sat., Nov. 21. 10 a.m. 80 Ac. Land Auction. Father Mike Lebrandi, MT. CARROLL. Jim Calhoun, Auctioneers. Sat., Nov. 21. 11 a.m. 70 Ac. Lee Co. Kenneth Mall Deceased & Heirs, ASHTON, IL. Lenny Bryson, Auctioneer.
Sat., Nov. 21. 10 a.m. Real Estate. Charles Lukas Trust/Mary Lukas Trust, COLLINSVILLE, IL. Ahrens and Niemeier, Auctioneers. Mon., Nov. 23. 10:30 a.m. Land Auction. Mary H. Shaw Rev. Trust, SEYMOUR, IL. Gordon Hannagan Auction Co. Mon., Nov. 23. 7 p.m. 230 Ac. Montgomery and Fayette County. Anita and Ottis Crowe Trust, NOKOMIS, IL. Cory Craig, Auctioneer. Tues., Nov. 24. 10 a.m. Farmland Auction. A. Renee Extell & C.U. Calvert/Rieckert, SUBLETTE, IL. Dick McConville and Joe McConville, Auctioneers. Sat., Nov. 28. 10 a.m. Farm Auction. Mr. Jim Thompson, JACKSON, TN. James R. Cash, Auctioneer. Sat., Nov. 28. 10 a.m. 245 +/- Ac. Henderson Co. Ray L. Myers Farm, LAHARPE, IL. Sullivan Auctioneers. Mon., Nov. 30. 10 a.m. 98.9 Ac. Coles Co. Louise Brockjones Ltd. Partnership, CHARLESTON, IL. Stanfield Auction Co. Tues., Dec. 1. 6 p.m.
240+/- Ac. Adams Co. Richard E. Perry, Jean M. Staats, Matthew L. Levins, Jane M. Williams, Bernard F. Perry, James E. Perry, Julie A. Gieselman, MENDON, IL. Sullivan Auctioneers. Tues., Dec. 1. 10 a.m. McDonough Land Auction. Heirs of the Forothy McClure Fox Trust, MACOMB, IL. Lowderman Auction Co. Tues., Dec. 1. 10 a.m. 446.44 Ac. Knox Co. Dan and Barb Dexter, GALESBURG, IL. Van Adkisson Auction Service, LLC. Wed., Dec. 2. 4 p.m. Farmland Auction. Helen Kirk, HOPEDALE, IL. Anderson and Boston Auctioneers. Wed., Dec. 2. 10 a.m. 78.58 Ac. McDonough Co. Donald C. Swartzbaugh, BUSHNELL, IL. Roberts Auction Service. Wed., Dec. 2. 10 a.m. Estate Auction. Robert O. Annett, Estate, Rose Ostby, Exec., CORNELL, IL. Immke and Bradleys’ Auction Service.
resistance to both aboveand below-ground pests), refuge size requirements have remained consistent, but details about placement have changed relative to older corn borer-resistant varieties. “Essentially, you have to place that refuge in or adjacent to the triple-stacked product in the field,” he told Far mWeek. “There are some nuances about
where the refuge is placed, and I think that’s some of the gap here. “If you look at the planting season this past year, we had a narrow window and guys were moving quickly to make sure to get corn planted in as timely a fashion as they could. “There are a lot of moving parts to a grower’s operation. With a triple-stack product, some added steps
need to take place.” Growers may strip-plant non-Bt varieties into triple stack plots or plant blocks of non-Bt corn in or adjacent to triple stacks. Both require producers to select refuge varieties with similar herbicide traits and maturities, and block plant ing necessitates equipment cleaning between triple stack and non-Bt plantings, Belzer said.
Biotech advances, insurance option underline IRM issues Two new curves are being added to the insect refuge management (IRM) mix, but, according to Pioneer’s Bill Belzer, an expanded biotech crop insurance endorsement should help producers navigate the refuge learning curve. One new development is release of Monsanto’s eight-trait SmartStax technology, which blends herbicide tolerance with broad-spectrum insect resistance. The Environmental Protection Agency (EPA) has approved a reduced 5 percent block/strip refuge for “Genuity”-branded SmartStax varieties planted next spring. EPA is reviewing DuPont-Pioneer’s Optimum AcreMax I, a multi-trait “refuge-inthe-bag” product that blends a high percentage of Herculex Xtra above/belowground-resistant seed with a lower percentage of non-rootworm-resistant Herculex I
seed to provide rootworm refuge in a single planting. Rootworm larvae do not travel far, and integrated bagged refuge thus “matches up with rootworm biology really well” and offers additional “trait durability,” Belzer said. He anticipates federal approval of AcreMax for the 2010 season. Meanwhile, Belzer sees an expanded 2010 biotech endorsement (BE) offering “an opportunity to have another conversation” with producers about refuge compliance. BE offers premium discounts to producers who plant eligible multi-stack varieties on 75 percent of covered acres, and Belzer suggested dual refuge/BE requirements will help growers with their stewardship. “It’s not that it changes anything (with IRM), it just gives us a chance to reinforce it,” Belzer told FarmWeek. — Martin Ross
FarmWeek Page 6 Monday, November 16, 2009
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: More good harvest weather last week allowed almost everyone to wrap up the soybean harvest for 2009. Now it’s full steam ahead in the corn harvest. Thankfully, the corn has dried down nearly 10 points in the last two weeks. Moisture levels in the mid-20s are common, with some varieties in the low 20s and some still near 30 percent moisture. Lots of fall tillage, fertilizer, and nitrogen application also are well under way. Remember to stay safe during this very busy time of the year. Pete Tekampe, Grayslake, Lake County: Another dry week in Lake County with the highs in the mid-60s. Where was this weather in October? Only a couple of sprinkles, but not enough to stop cutting beans. Most of the beans are cut. I finished Tuesday. Moisture was 13 to and 14 percent with the yields in the mid- to upper20s. Not much corn is picked yet with the moisture being close to 30. Hopefully, some corn will be picked this week. A light shower was expected over the weekend with cooler temperatures at the beginning of this week. Be careful and have a safe week. Leroy Getz, Savanna, Carroll County: A great week for harvest. Beans are down to the last 10 percent. Corn drying is still a problem either on the farm or at the elevators. Elevators stopped receiving to empty their wet bins. When they stopped receiving corn at Savannah, both wet and dry corn went to another elevator, causing long lines and delays. There are still stories of combines stuck in mud holes. Ron Frieders, Waterman, DeKalb County: Good weather enabled farmers to finish soybean harvest last week. I would estimate 80 percent of the yields were far below expectations. Corn harvest is going full speed, but progress is not. Moisture in corn is very high. People still are harvesting corn as high as 34 percent moisture. If you find a field of corn below 30 percent, you feel lucky. Yields and test weight are very disappointing this year. Please remember safety. Larry Hummel, Dixon, Lee County: The month of November so far has turned out some excellent harvesting weather. Combines are rolling everywhere you look. Almost all of the soybeans in the area are out of the field and in the bin with fans running to bring the moisture down. Corn harvest might be reaching the 25 percent done level. But the pace should be picking up with moisture levels falling. The driest corn I have heard of is 23 percent, but most of the corn is coming out at 26-32 percent. Our grain dryer can keep up with the combine at 27 percent moisture, but if you add another 3 points to that, it feels like someone threw the anchor out. Joe Zumwalt, Warsaw, Hancock County: The past few weeks have been kind to us in Western Illinois allowing some major progress on the harvest front. I would guess that 90 percent of the soybeans have been cut and about 60 percent of the corn has been shelled. A few have done some tillage, but not too many or very much. Custom applicators have begun some anhydrous applications, but again, it has been limited. Elevators continue to take in massive amounts of wet grain, but so far have been able to keep the doors open. Nevertheless, it has been one long fall harvest season already. We have about 100 acres of corn left, so we are keeping our fingers crossed that the weather holds out for a few more days. Lord knows we have played in the mud long enough.
Ken Reinhardt, Seaton, Mercer County: Harvest lurches on. We have had nice weather but long lines at the elevators when they are taking wet corn. Soybean harvest is nearly done. There has been a wide range in yields, and some 20s to 30s in the southeastern part of the county where white mold was the worst. Corn moisture has dropped some. The Soil, Water, and Conservation District no-till continuous corn plot planted May 11 averaged 23 percent moisture with a range of 18.5 percent to 28 percent. The average yield was 196 on 54 hybrids. Tile contractors are busy. It’s easy to see with yield mapping the benefits of additional drainage. Ron Moore, Roseville, Warren County: We received 0.2 of an inch of rain last Tuesday morning. The sun came out and we started harvest again that afternoon. It was good weather to finish up the beans last week. Corn harvest has been slow because of the high moisture content The elevators are getting full and shutting down to catch up on drying. We have only five good days of harvest left, but it might take up to two weeks to get finished. Fertilizer is now being applied on the acres that are harvested. Jacob Streitmatter, Princeville, Peoria County: Harvest is well under way. Soybeans have disappeared from the horizon for the most part, but a lot of corn still stands. Corn moisture for us has been anywhere from 33 to 26 percent. The elevators are lined up and full of wet corn by mid-day. The elevators have even been full at 8 a.m. At this rate, I bet there will be a lot of corn still standing next year. Rain last week totaled 0.3 of an inch, but the fields seem like it rained 3 inches. We shall see what this week brings. Tim Green, Wyoming, Stark County: A good week last week. There still are a few beans here and there, but in general most people are done. The bean crop was a little disappointing, with a lot of beans in the 40-bushel range. Corn moistures finally have come down a little bit, but there is a lot of 26-27 percent corn. It doesn’t sound like much, but it sure is helping out the corn dryers and the elevator people, too. LP is getting short and it is starting to become another problem we have to manage. Hope the weather holds, and be safe. Mark Kerber, Chatsworth, Livingston County: We are fortunate that weather has given most producers a chance to finish with their soybeans. Corn harvest is in full swing. Drying wetterthan-usual corn has created lines and shutdowns at elevators. Farmers with their own dryers also are finding it slow going to dry out wet holding bins. With combines sitting at times, many have jumped on their tractors and started fall tillage. The strip-till guys have all started. Field conditions are still a little muddy. We have used the auger wagon and tractor twice to pull stuck loads out of the field. Ron Haase, Gilman, Iroquois County: The majority of soybeans are done in this area. Corn was being harvested all week with a little time lost due the rain on Tuesday. We received 0.2 to 0.3 of an inch of rain. Overall, the moisture range of what I have harvested has been 19 percent to 23 percent. So the moisture has dried down a little bit in the field. With more farmers done with soybeans, the line at the elevator for wet corn has become longer. The local elevator has been receiving wet corn until 11 a.m. each day thus far. We have harvested 29 percent of our corn at this point. That means we got 12.5 percent done last week with 71 percent yet to go. How long will that take? Thursday, the combine broke down and we lost one day of harvesting. Hopefully, that will get fixed so we do not lose more time. With our free afternoons, we have begun tilling the farms we have finished and have had fertilizer spread on so we can get some of the tillage done before the weather shuts that down for the year. The local closing prices for Nov. 12: nearby corn, $3.57; fall 2010 corn, $3.96; nearby soybeans, $9.68; fall 2010 soybeans, $9.52.
Brian Schaumburg, Chenoa, McLean County: The onslaught continues. Soybeans are 95 percent harvested and corn 35 percent. Elevators now close at noon or 2 p.m. Moisture is down to an average of 24 percent and some are able to utilize low-temp bins. NH3 and dry fertilizer are being applied and some have tried tillage. Ever wonder how much grain is on wheels in a single day? Corn, $3.57, January corn, $3.73; fall 2010, $3.99; soybeans, $9.65; January, $9.70, fall 2010, $9.59. Steve Ayers, Champaign, Champaign County: November and October weather forecasts seem to have switched (thankfully) and we finally had a productive harvest week. Soybean harvest wrapped up Wednesday after a brief shower knocked us out of the field Tuesday afternoon. The elevator closed to wet corn on Thursday to catch up on drying, so we were looking forward to combining corn Friday. USDA had our crop reporting district at 30 percent of the corn and 81 percent of the soybeans harvested as of Nov. 9. Looks like showers through next Wednesday. Think safety! Wilfred Dittmer, Quincy, Adams County: It was a good week for harvesting in our neck of the woods and several fields showed that progress can be made with just a little cooperation from Mother Nature. Tuesday was the only day of rain the past week, with only about 0.1 of an inch in my gauge while some received considerably more. Most machines have been running in soybeans where yields are good but nothing to write home about. I thought last year’s beans were short, but a lot of them are this year, too. That 42.95 inches of water for the year just didn’t let the soils dry out much to breathe. Nearby, most corn fields are still standing with only a few being shelled. We probably all need another two or three weeks of favorable weather to get things wrapped up for a most unusual year. Do be careful — the life you save may be your own. Harry Schirding, Petersburg, Menard County: Rainfall last week, 0.06 of an inch. Total for November, 0.11 of an inch. Normal for November, 2.87 inches. Corn harvest continues with only a short pause on Tuesday for light showers. Field conditions continue to improve, although there are areas that still will not support harvest equipment. Yield monitors are indicating where corn yields would have benefited from tile. Elevators are better able to keep up now that moisture levels are in the low 20s. Approximately 5 percent of the soybeans remain to be harvested. The record moisture of October has made it difficult to maintain an acceptable wheat stand. Producers hoped to get more wheat planted, but have abandoned those plans. Corn nearby, $3.61, up 10 cents; soybeans nearby, $9.63, up 11 cents; January corn, $3.64, up 8 cents; January soybeans, $9.73, up 14 cents. Todd Easton, Charleston, Coles County: Just concluded another late night out in the field, one of several in the past weeks, which is a good sign that progress is being made. Standing soybeans have been nowhere to be found for the last week as producers are almost completely engaged in harvesting the corn crop. Moistures are running in the 18- to 20-percent range, still making the elevator lines long and slow but not as bad as they have been. Tillage tools have been out in large numbers now that soil conditions have improved. Judging from the basketball-sized clods rippers are leaving behind them, this year did a lot of damage to the soil structure. After a whole year of weather-related complications, the last couple of weeks have been a blessing. Hopefully, the forecasted rains won’t amount to much and we can get the bulk of this harvest finished before the end of the month.
FarmWeek Page 7 Monday, November 16, 2009
CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: I would say 95 percent of the beans are out in the county, at least in the northern part. We are working pretty hard on corn. Moisture levels are anywhere from 17 to 20 percent. I should make good headway on that. A lot of fieldwork is being done. Some anhydrous and fertilizer are going on. Have a safe week, because I know everyone is tired. Ted Kuebrich, Jerseyville, Jersey County: This was the second week in a row that the weather was good for harvesting. The real late-planted corn still has more moisture in it than we would like. Most of the beans are out and fall tillage work has started. The anhydrous wagons are heading to the fields, and there are a lot of farmers putting on their fall nitrogen. Prices at Jersey County Grain, Hardin: November corn, $3.69; January corn, $3.82; fall corn 2010, $4.02; November beans, $9.52; January beans, $9.90; fall beans 2010, $9.62.
Bob Biehl, Belleville, St. Clair County: Almost two weeks of straight combining and most of the time has been spent in beans. We finished up the firstcrop beans last week and have some double-crop wheat beans left. We are going to stay in beans and get them knocked out before it snows. Bean yields have been mostly between 44 and 51 bushels an acre. The double-crop beans are around 32 to 35 bushels per acre. Looks like the aphid spraying made no difference at all in this area. The first-crop fields I sprayed had no yield difference, maybe even produced less. The double-crop fields may have responded more. I sprayed a couple of those as well. A little more wheat was sown in the area, especially by those who need more for the straw. We salvaged our wheat fields by patching in the low areas that didn’t come up after 4 to 6 inches of rain. I have not heard what corn moistures have gotten down to after 8 to 10 days of nice weather. Hopefully they’re below 23 percent.
Dan Meinhart, Montrose, Jasper County: No rain this past week. Soybean harvest should have wrapped up over the weekend. A lot of high-moisture corn has come out of the field. Some dry down is taking place in the field. Corn harvest has a long way to go yet. The ground is settling down quite well. Some fertilizer is being applied and some fall tillage is being done, especially where ruts have been made. There is a chance rain will return to the area the first part of this week. Temperatures are expected to run about 10 degrees cooler than the previous week.
Kevin Raber, Browns, Wabash County: Another productive week of harvest in Southeastern Illinois. Harvest is wrapping up. I will hopefully be done by the time everyone gets to read this. It is getting dry enough to do some fieldwork, and I’ve seen several lime piles out in the fields. Some wheat was sown this past week, but I think most people have given up on it. As far as I know, there haven’t been any lines at the elevator, but I will find out because the last acres of corn need to go to the elevator.
Dean Shields, Murphysboro, Jackson County: We had a wonderful week of weather in Southern Illinois. A lot of progress was made in harvesting the corn, soybeans, and milo. We knocked a lot of acres out and are getting down to not so many acres left. It is dry enough now that we are seeing a little bit of fall tillage start up again. Maybe some of that land will see some wheat. We still are having flooding problems in some of the lowlands. The water is not off of them yet, but it is going down with the pumps that we have. Maybe this week, if we don’t get too much rain, we may be able to get in and get that. Overall, it was a good week in Jackson County for harvest, and let’s hope the weather continues. Ken Taake, Ullin, Pulaski County: We had another open week here in Pulaski County. That’s two weeks in a row. Must be a record. We finished harvesting soybeans and we are down to fewer than 50 acres of corn as I file this report. Corn finally dried down a little bit more. What we shelled Thursday was down to a little less than 17 percent. Everybody is running as hard as they can. A few people are finished with harvest. There are a lot of people spreading fertilizer and lime, trying to do fall activities. Please remember to be careful during this busy harvest season.
Reports received Friday morning.
Bean harvest nears completion; focus shifts to corn BY DANIEL GRANT FarmWeek
Another stretch of mostly sunny, mild days last week allowed many farmers to complete soybean harvest and turn their attention to corn and fall fieldwork. Harvest as of the first of last week was 69 percent complete for beans (27 percent behind the average pace) but just 31 percent complete for corn (61 percent behind the average pace). “Soybeans have disappeared from the horizon for the most part,” said Jacob
Streitmatter, a FarmWeek Cropwatcher from Peoria County. “But a lot of corn still stands. At this rate, I bet there will be a lot of corn still standing next year.” Corn moisture declined in recent weeks, according to Leon Adams, a farmer from Jefferson County, who reported some corn in his area last week tested below 20 percent moisture. But farmers still are encountering long lines and early closings at elevators due to the large and wet crop. “The elevators are getting
BY JEFF BUNTING
It’s nice to see the latest Illinois Crop Development and Progress report reflect the busy harvesting from the last few weeks. However, it may be awhile before we can close the book on 2009. It is important to think about next year’s crop now and discover new technologies. Over the last few years, corn yields have been outstanding, and soybean yields have been very good. These yields were because of significant amounts of fertilizer use from Jeff Bunting the soil. Because of last year’s record prices in fertilizer and fuel, many changes were made in normal farming practices. Some reduced the amount applied or didn’t apply any fertilizer at all. These decisions impacted this year’s crops with nutrient deficiencies from the lack of potash or phosphorus. Pull those soil samples,
full and shutting down to catch up on drying,” said Ron Moore, a Cropwatcher from Warren County. “It might take up to two weeks to get finished.” Harvest progress likely will be slowed this week. Dan Kelly, a meteorologist with the National Weather Service (NWS), on Friday predicted an incoming cold front and upper level low could park over the state and bring a chance of showers today (Monday) through Wednesday. “We could kick this week off with some showers and
thunderstorms,” Kelly said. The NWS’ 8- to 14-day forecast as of Friday called for a chance of slightly abovenormal precipitation and above-normal temperatures. Temperatures in Central Illinois this time of year average about 50 degrees for the high with lows near 32 degrees, Kelly said. Meanwhile, farmers last week still had double-crop beans to harvest while others attempted to catch up with fall fertilizer applications. “The first-season beans are done, so now guys are in dou-
revisit the nutrient levels, and apply the necessary nutrients, because we all want to maximize our yield potential. Many of you have or soon will make seed selections for next year’s crops. This past year we saw for the first time Liberty Link soybeans, Roundup Ready 2 soybeans, and Agrisure 3000GT. Data are limited, but so far, all three technologies are performing well and are available for 2010. GROWMARK agronomy evaluated a number of on-farm discovery plots with these new technologies. Soon, this information will be compiled and summarized. Another new technology to watch is SmartStax in corn, available for the 2010 season. This will change refuge management and offer added flexibility in post herbicide options. Your local FS crop specialist can answer any questions that you might have and will evaluate all these technologies to help you select the best hybrids and varieties.
ble-crop beans,” said Adams, who reported bean yields in his area ranged from 35 to 60 bushels per acre for first-season beans and 25 to 40 bushels for double-crop beans. “We had some good wind and heat that really helped us.” Josh Curry, a Henry County farmer, took advantage of the recent dry stretch to apply most of his fall fertilizer. “We put on two-thirds already and we should be able to finish soon,” Curry said last week. “The ground dried up nicely.”
Recently, there has been an emphasis on applying fall herbicides to control winter annual weeds. However, there are a number of acres in Southern Illinois that still have corn on them and, unfortunately, will not have herbicide applied. Last spring we were challenged in providing effective burn-down recommendations, but more good news in 2010 is the availability of a few new herbicides that can be used as a burn-down alternative for no-till corn and soybean acres that require a burndown application ahead of planting. Farming is not what it was five years ago, but your local FS crop specialist can help you understand the changes. It should make for an interesting and exciting 2010 growing season. As you continue to harvest, remember: Be safe; there is no race to see who finishes first. Jeff Bunting is GROWMARK’s seed corn product manager. His e-mail address is jbunting@growmark.com.
FarmWeek Page 8 Monday, November 9, 2009
YOUNG LEADERS
ACHIEVEMENT IN AGRICULTURE The 2009 Young Leader Achievement Award finalists Illinois Farm Bureau’s Young Leader Achievement Award recognizes extraordinary accomplishments in farming and leadership. This year’s award winner will be honored at IFB’s annual meeting Dec. 5-8 in Chicago. Participants are judged on their management, innovation, and self-initiative, as displayed through their farming operations. Leadership ability and involvement and participation in county Farm Bureau or other civic, service, or community organizations also are major factors in selecting the top young producer. The first place winner receives 150 hours of use of any two-wheel-drive Case IH tractor, $1,000 cash from IFB, a one year membership in the Illinois Corn Growers Association (ICGA), and expense-paid trips to the American Farm Bureau Federation annual meeting in Seattle, the GROWMARK annual meeting in Chicago, and the Young Leader State Conference in Springfield. The first runner-up will receive a $600 Visa gift card from Farm Credit Services/1st Farm Credit Services and a one year ICGA membership. The two honorable mention finalists each will receive $250 cash courtesy of Country Financial and a one year ICGA membership. Four producers are finalists in this year’s competition. Here, they share their thoughts on maintaining the tradition of the family farm and planning for the future.
Leon and Andrea Adams Bonnie, Jefferson County Leon and Andrea Adams grow a variety of crops and both work off the farm. Leon and his father, Kirby, manage Adams Farms Inc. They grow corn, seed wheat, commercial wheat, parent soybean seed, and commercial soybeans on about 4,200 acres in Jefferson County. Leon also manages a Pioneer seed dealership. Andrea, a graduate of the Rend Lake College cosmetology department, operates her own salon in Mt. Vernon. “It seems like we’re always running 100 different directions. But diversity is a good thing,” Leon said. “You don’t want all your eggs in one basket.” The Adames capture some additional premium growing seed crops. Leon also believes the use of improved crop genetics and better field management will boost yields and profitability. “We’re continually seeing increased production with the adoption of new genetics,” said Leon, who also believes in micro-managing crop fields and keeping soil tests up to date. “It (intensively managing each acre) will cost you money up front, but it will make you money or save you money in other areas.” Leon believes marketing is among the top challenges facing farmers. “I think we’ll continue to see large movements in prices,” he said. On the input side, “You’ve really got to know your cost of production,” he maintained. Leon, who was the Illinois FFA state secretary in 2001/02, also helps organize a farm safety day camp each year for local school children. The couple welcomed their first child, Madalynn SaRae, on May 18.
Josh and Jody Curry Alpha, Henry County Josh and Jody Curry produce corn, soybeans, and wheat on a multi-generational farm. They also operate a farrow-to-finish hog operation and a crossbred cowcalf herd. Jody works off the farm at a local bank and also is a child birth educator and Lamaze instructor. They have a son (Owen) and two daughters (Carsen and Hadaly). “Our goals are to be profitable, provide a satisfying lifestyle for our family, and to provide an opportunity for the next generation to get to farm,” Josh said. Josh said it is challenging at times to be a young farmer, but he believes there will be future opportunities to expand the operation. “There are a lot of retiring farmers out there so there will be some opportunities to purchase or lease land,” he said. The Currys also plan to stay in the livestock business despite recent struggles. “The biggest challenge right now is the continued red ink in the hog industry,” Josh said. “But we still have a positive outlook that things will change.” The Currys closely monitor animal nutrition and production records to increase such things as average daily gain and overall health of their swine herd. On the crop side, they use basis contracts, hedge-toarrive contracts, cash sale contracts, specific option contracts, averaging contracts, premium offer contracts, and crop insurance to help ensure crops are marketed at a profit. Josh joined Young Leaders when he was 18 and said “it’s a great way to meet other farmers.”
Lori Engel Galesburg, Knox County Lori Engel and her husband, Kevin, run a registered Angus cattle and hay operation. Kevin also works off the farm at Birkey’s Farm Store in Galesburg. Lori grew up on a grain and cattle farm and originally went to college to study to be a veterinarian. “I grew up with cattle and always knew I wanted to get back into it,” said Lori, who decided to enter the production side of the business after her experience on a meat judging team.
Engel seeks to build a genetically strong cow/calf operation with balanced expected progeny differences by incorporating the use of artificial insemination. Bulls are used to improve growth and carcass traits while the heifers are retained as replacements. The majority of feed for the herd consists of forage so Engel was not affected as much by higher grain prices in recent years as some of her counterparts. But the wet weather this year did reduce hay production, which Engel uses for her herd and sells the rest off the farm. “This year we made 1,000 fewer bales than last year,” she said. “Each bale weighs about 60 pounds so that’s about three tons less than last year.” In the future Engel looks forward to her children (Dalton, Katelynn, and Kyle) getting involved in the cattle operation through 4-H. She also hopes to add more cows to the herd and buy more pasture ground. Engel got involved in Young Leaders about four years ago and said “it’s a great way to meet other people with interests like ours.”
Joe Zumwalt Warsaw, Hancock County Joe Zumwalt grows corn and soybeans on 1,010 acres, he is a part owner of Hancock Land Co., and he does excavation work on the side. Zumwalt also helps care for Charolais cattle and Arabian horses on his family’s farm. “I knew I always wanted to farm,” said Zumwalt, who farms land that was acquired by his family back in the 1930s. He believes efficiency and management are the keys to surviving difficult economic times. “I think people have to get the most out of each acre,” he said. “It’s not just about how many acres you cover.” Zumwalt also believes farmers must manage their inputs more carefully due to wild fluctuations in the price of everything from fertilizer to fuel. “The old saying is ‘The money is made in marketing’,” he said. “But you need to be a pretty smart entrepreneur to get your inputs priced” at levels that allow for profitability. Zumwalt has been involved with Young Leaders for 15 years. He was the winner of the 2008 Young Leader State Discussion Meet, and he recently completed a four-year term on the Young Leader State Committee. “I’ve met a lot of wonderful people and had some great opportunities” through Young Leaders, he said. He also had a memorable year in 2008 as 860 of his 1,010 acres were flooded when a levee broke along the Mississippi River and covered his fields with water anywhere from 10 to 30 feet deep. The levee broke on June 18, 2008, and his farm wasn’t completely dry until after Christmas that year. “It was a difficult situation, but it was something our community was able to overcome,” Zumwalt said. “I’m still farming and have plans to expand in the future.” –- Daniel Grant
FarmWeek Page 9 Monday, November 16, 2009
MARKETS
Record yield forecasts could weigh on markets BY DANIEL GRANT FarmWeek
Harvest may be lagging behind this fall, but it apparently hasn’t affected the size of the crops. USDA in its November crop report last week estimated U.S. production this year will total 12.9 billion bushels of corn (up 7 percent from last year) and a record 3.32 billion bushels of beans (up 12 percent from last year). The large crops are the result of record-high national yields estimated at 162.9 bushels per acre for corn and 43.3 bushels for beans.
‘The adjustments by USDA should be suppor tive of cor n but a little beari s h o n t h e s oy bean and wheat front.’ — Gavin Maguire analyst with EHedger
Illinois yield estimates (175 bushels per acre for corn and 45 bushels for beans) are well above the national averages, but those yields would be down 4 bushels for corn and 2 bushels for beans compared to last year. “The adjustments by USDA should be supportive of corn but a little bearish on the soybean and wheat front,” said Gavin Maguire, analyst with EHedger, during a teleconference hosted by the CME Group. Maguire noted the corn yield projection actually declined by 1.3 bushels compared to last month. “I think the increase of the national soybean yield has
been coming for some time.” A record-large U.S. soy crop combined with the potential for an estimated 1 billion-plus-bushel increase in South American production could weigh on the market. “We’ve raised the bar (of supply in the U.S.) and now we have the prospect of a large (soy) crop in Argentina and Brazil,” said David Hightower of the Hightower Report. “If we don’t have a weather threat (in South America), you have to assume it will have a big negative impact on prices.” Maguire believes soybean prices early next year could dip below $8 per bushel. USDA forecast bean prices to average between $8.20 and $10.20 per bushel. Meanwhile, wheat prices are expected to sputter as USDA raised world production estimates and lowered U.S. exports. Ending stocks of wheat were projected at a 10year high of 885 million bushels. “As long as world wheat supplies are rising and not falling, the market will have trouble sustaining any longterm rallies,” Maguire said. Corn stocks, on the other hand, have declined in the past eight months from 2.1 billion bushels to this month’s estimate of 1.625 billion bushels. Soybean ending stocks were estimated at 270 million bushels. “The corn number is a little friendly,” Maguire said. And corn supplies could get a little tighter depending on the remainder of harvest. “This report is kind of premature (due to the late harvest),” Hightower added. “Variability is still out there and it’s very significant.” USDA will issue its final production estimates for the season in January.
Illinois Agriculture Director Tom Jennings, at lectern, discusses Wal-Mart’s locally grown program during a news conference in a Springfield Wal-Mart last week. Looking on from left are growers Ted Maddox of Maddox Farms, Mark Meyer of Meyer Produce, and Sarah Frey of Frey Farms Produce; Zelina Bazan, Wal-Mart local sourcing buyer for Illinois; and John Bisio, Wal-Mart senior manager of public affairs and government relations in Illinois. (Photo courtesy of Wal-Mart)
Wal-Mart growing farmer-suppliers BY KAY SHIPMAN FarmWeek
Wal-Mart shoppers are finding more Illinois fruits and vegetables on store shelves and are supporting Illinois agriculture with their purchases, according to WalMart executives, farmer-suppliers, and the state agricul-
FarmWeekNow.com Hear Wal-Mar t of ficials explain why they are promoting Illinois-grown produce at their stores at FarmWeekNow.com.
ture director. “We get shelf space in Wal-Marts. That’s tremendous in terms of economic benefits for Illinois,” said Illinois Ag Director Tom Jennings. Last week, Jennings joined Wal-Mart executives and three Illinois growers to highlight Wal-Mart Stores Inc.’s efforts to buy and sell Illinois-grown produce and products. Over the last two years, Wal-Mart has increased by 50 percent the number of local farmer-suppliers nationwide. Those Wal-Mart purchases helped local farmers, and in some cases, allowed them to expand their operations, the farmers said. Being a Wal-Mart supplier over the past 15 years helped Frey Farms Produce, based in Wayne County, grow from a small family farm into a
national organization, said Sarah Frey Talley, company president. “Jobs in Southern Illinois, particularly in Wayne County, are hard to come by,” Talley said. As its business with WalMart increased, Frey Farms hired more employees, including seasonal workers, and created more positions, she added. Doing business with WalMart also has helped smaller farm operations, said Mark Meyer of Meyer Produce, Manito. “With Wal-Mart doing its local produce initiative, it is helping smaller guys who maybe wouldn’t stay in business sustain themselves, and at the same time supply good fruits and vegetables to the stores,” Meyer said. Working with diverse Illinois growers also helps Wal-
Mart when, for example, weather hampers harvest in some areas but not others, added Ted Maddox of Maddox Sweet Corn Farm, Warrensburg. Last week, Wal-Mart executives discussed opportunities and issues with growers, University of Illinois Extension specialists, and representatives of ag organizations. “Our hope is to continue to promote locally grown in Illinois and to engage prospective producers and help them understand what it takes to do business with Wal-Mart,” said John Bisio, director of public affairs and government relations for Wal-Mart in Illinois. “Illinois has so many opportunities to expand this locally grown food system,” Jennings said. “It all relates to jobs and anything we can do to grow this effort — that’s what we’re all about.”
FarmWeek Page 10 Monday, November 16, 2009
POLICY
RC proposes IDOA animal oversight, group efforts BY MARTIN ROSS FarmWeek
The Illinois Farm Bureau Resolutions Committee (RC) seeks to bolster health and educational resources and policy protections for an alreadybeleaguered livestock industry. Amid concerns about state ballot initiatives and local efforts aimed at restricting livestock activities, RC proposals support granting Illinois Department of Agriculture jurisdiction over care of all livestock and companion animals statewide. IFB producer delegates will review policy proposals at the organization’s Dec. 5-8 annual meeting in Chicago. The RC proposal is aimed at providing strong, ag-based guidance in the face of pressure from activist groups such as the Humane Society of the United States (HSUS). RC Ag Policy-National Issues Subcommittee Chairman Kent Mellendorf noted the prospective negative impact
of California’s recently passed, HSUSbacked Proposition 2 on West Coast egg producers. Ohio voters by a nearly two-to-one margin recently supported establishment of a new Ohio Farm Bureaubacked Livestock Care Standards Board that will recommend guidelines for the care of the state’s livestock. Oklahoma and Michigan have passed legislation prohibiting local governments from enacting livestock rules or ordinances that are more restrictive than state ag regulations. The RC also proposed commodity groups pool resources to educate consumers on the best management practices producers employ, especially those in livestock production. As activists mobilize to restrict production practices, livestock, dairy, and mutually reliant crop-producing groups are recognizing the value of pooling resources to “target one area at a time vs. each one trying to do a
little bit on its own,” Mellendorf said. For example, the Ohio Corn Growers Association helped lobby for the Ohio Livestock Care Standards Board. Concerns about H1N1, sometimes mislabeled “swine flu,” have heightened consumer education efforts and a focus on animal disease control. The RC supports maintaining a “modern, biosecure” disease research center. Since the 1950s, exotic animal disease research has been conducted at Plum Island Animal Disease Center, an 840-acre island off the coast of New York’s Long Island. A proposed National Bio and Agri-Defense Facility (NBAF) would have an even higher biosecurity rating than Plum Island, enabling it to study diseases for which there is no vaccine. Manhattan, Kan., is a prime site under consideration for an NBAF, and the RC was concerned about security if disease research is moved inland.
Synchronize FSA, crop insurance dates The Illinois Farm Bureau Resolutions Committee (RC) recommends giving producers more time to consider their spring crop insurance protection options. The RC has proposed policy requiring that individual county final yield averages needed for revenue-based group risk income protection (GRIP) and yield-based group risk plan (GRP) policies be released no later than one month prior to the March 15 federal crop insurance sales closing date. GRP and GRIP use county — rather than individual —yields as the basis for crop or price loss protection. While normally final Illinois county yield estimates needed to gauge the previous season’s GRIP performance are announced by mid-February, statewide data were not available until early March this season. Growers in other states objected to Illinois’ relatively early release date, and USDA “unified” nationwide release dates, IFB risk management specialist Doug Yoder reported. The RC proposal seeks a February release date for all states. “At least 30 days in advance would give individual farmers a little more time to make up their minds about what kind of insurance they want or how much they want to carry,” argued RC Ag Policy-National Issues Subcommittee Chairman Kent Mellendorf. The RC also proposed requiring automatic extension of USDA Risk Management Agency (RMA) acreage reporting deadlines in the event Farm Service Agency (FSA) crop certification deadlines are extended. Existing IFB policy recommends coordinating RMA/FSA reporting dates and deadlines to offer producers “one-stop shopping,” rather than a “double submitting” of data, Yoder said. — Martin Ross
IDOA trade missions garner livestock sales Trade missions led by the Illinois Department of Agriculture (IDOA) over the past three months have generated nearly $500,000 in business for the state’s livestock industry. Most recently, a dairy operation in the Mexican state of Aquascalientes accepted 226 Holstein cattle from a West-Central Illinois farm. The sale stemmed from a late September buyer’s mission in conjunction with IDOA’s dairy industry tour. Separate Panamanian and Dominican swine missions in August resulted in pork producers from both countries buying 76 head of breeding stock. “These sales could not have come at a better time because our livestock industry is suffering through an economic crisis,” Agriculture Director Tom Jennings said. Eight IDOA trade missions this year focused on livestock-related markets, bringing 34 buyers from seven countries to Illinois and generating sales exceeding $1 million, including pending sales. Jennings noted every dollar spent on marketing has generated $174 in sales. IDOA will host Costa Rican swine buyers this month and Mexican swine buyers in December.
FarmWeek Page 11 Monday, November 16, 2009
IFB IN ACTION
IAA Foundation caps successful summer, fall fundraisers BY KAY SHIPMAN FarmWeek The IAA Foundation netted more than $83,000 through fundraising activities this summer and is looking ahead to several fundraising activities at the Illinois Farm Bureau annual meeting in Chicago. “I am grateful for the support shown to the IAA Foundation through participation in our fundraising events, and am pleased with our financial results,” said Susan Moore, IAA Foundation director. “Every dollar earned is help-
ing more students and teachers understand where our food, fiber, and fuels come from and the important role agriculture plays in our daily lives,” Moore said. All event proceeds support the Illinois Agriculture in the Classroom (IAITC) program. On July 18, 323 participants joined the IAA Foundation at the “Pull for Agriculture Education.” The event was a sporting clays and trap shoot competition held at the World Shooting and Recreation Complex, Sparta. It netted nearly $8,000.
IAA Foundation offers scholarships to IFB families Illinois Farm Bureau members and their children may apply for college scholarships offered by the IAA Foundation. Up to 57 scholarships, ranging from $1,000 to $2,000 per year, will be awarded. “We are pleased to once again have the opportunity to assist Farm Bureau families with the ever-growing expenses of college.” said Susan Moore, IAA Foundation director. “It is a great privilege to support our next generation of leaders and encourage continuing education in agricultural fields.” Guidelines, applications, and an activities template will be available at the Foundation website {www.iaafoundation.org} starting Dec. 1. Questions may be directed to the IAA Foundation office at 309-557-2230, or by sending an e-mail to charms-garman@ilfb.org. Completed applications must be postmarked on or before Feb. 1, 2010. The Walter and Martha Wills scholarship is available again this year to students majoring in an agriculture program at Southern Illinois University in Carbondale and whose parents live on and operate a farm. Three Robert Rouse scholarships are available for Lake County students who are studying agriculture or nursing. The William Kuhfuss scholarship is available for a student studying agriculture at an Illinois post-secondary institution. The Greg Carney scholarship is available to a University of Illinois student who is actively involved in production agriculture and is a current or former 4-H member. The Dale Butz scholarship is for a student involved in production agriculture attending any educational institution. One Heartland NAMA (National Agri-Marketing Association) Steven A. Hammerschmidt memorial scholarship will be awarded to a junior- or senior-level college student majoring in agriculture or agribusiness with an interest in agriculture marketing, sales, or communications at an Illinois college or university. A Case-New Holland scholarship is available for students studying agricultural engineering, biological systems engineering, or ag mechanized/systems management and who reside in seven Central Illinois counties. An additional six scholarships may be used at any accredited university, college, or community college in the nation for the study of agriculture, agribusiness, or an ag-related major. Twelve additional scholarships of $2,000 each are funded by Prairie Farms Dairy (PFD) as a tribute to former PFD executives Fletcher Gourley, Leonard Southwell, and Roger Capps. The scholarships are for children of PFD employees and producers who sell milk to PFD. A total of 30 Dorothy and Wilhelmine Ratermann scholarships are available to residents of Southern Illinois counties. The scholarships may be applied toward any major at any accredited university, college, or community college in the nation. All applicants must be high school seniors accepted for enrollment or students already enrolled at an accredited college, university, or community college. Scholarships are awarded for exceptional academic ability, leadership, and financial need. Previous winners of an IAA Foundation scholarship are eligible to apply again. For more information, contact your county Farm Bureau, the IAA Foundation at 309-557-2230, or e-mail charms-garman@ilfb.org.
On July 30, 210 golfers participated in the IAITC Golf Outing at the Elks Country Club & Wolf Creek Golf Club, Pontiac. The golf outing netted more than $42,500. On Sept. 8-10, 50 cyclists pedaled in the IAITC Bike Ride through Clark, Coles, Cumberland, Douglas, Edgar, Effingham, Jasper, Moultrie, and Shelby counties. They netted more than $32,500 and visited 25 schools, reaching more than 2,500 students with lessons on agriculture and bicycle safety. Fundraising activities at annual meeting will start Dec. 5 with an ice cream social sponsored by Prairie Farms Dairy from 3:15 to 4:15 p.m. in the Grand Ballroom. The live auction will start at 3:45 p.m. in the Grand Ballroom. The silent auction will start at 1 p.m. Dec. 5 and conclude at 4 p.m. Dec. 7 in the Grand B room. A country store highlighting several new products will operate during the same hours. In addition, teams will compete in the sixth annual trivia contest, starting at 8:15 p.m.
Dec. 6 in the hotel’s Crystal Rooms A, B, and C. Teams will pit their knowledge against each other to raise money for the foundation. Registration is limited to the first 45 teams. Teams may compete in one of two team divisions: Farm Bureau leader teams of five or more Farm Bureau leaders and
volunteers and another division for teams of staff and corporate members. A prize also will be awarded for best team theme for team costumes, table decorations, etc. For more information, contact the IAA Foundation at 309557-2230, or go online to {www.iaafoundation.org}.
TAKING A BREAK
Schuyler County Farm Bureau made several stops in Schuyler County recently for a “Take a Break” safety promotion. The farmers and their employees are under a great deal of stress with the delay in harvest. Pictured with Farm Bureau manager Kelly Westlake is Carl Vancil of Rushville. Vancil and several other Schuyler County farmers enjoyed a quick snack and drink compliments of the Farm Bureau. (Photo courtesy of Schuyler County Farm Bureau)
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FROM THE COUNTIES
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RUNDY — The annual meeting will begin with a silent auction at 5 p.m. Thursday, Jan. 14, at the Morris Country Club, Morris. Dinner will be at 6 p.m. Tickets are $15 and will be available Dec. 8. More information will follow in the county Farm Bureau newsletter “Field Notes.” Call the Farm Bureau office at 815942-6400 for more information. NOX — Steve Johnson, Iowa State University farm and ag business management specialist, will be the speaker at a marketing seminar at 6:30 p.m. Monday, Nov. 23, at the Knox Agri Center. Riverland FS, Tompkins State Bank, Abingdon Banking Center, Winship Farm Management, North and Co., Monsanto, and Warren-Henderson and Knox County Farm Bureaus will sponsor the program. Call the Farm Bureau office at 342-2036 for reservations or more information. ASALLE — The annual meeting will be at 6:30 p.m. Tuesday, Dec. 1, at Pitstick’s, Ottawa. Dinner
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will be served. Cost is $7.50. Call the Farm Bureau office at 815-433-0371 for reservations or more information. CDONOUGH — Steve Johnson, Iowa State University farm and ag business management specialist, will be the speaker at a marketing seminar at 11:30 a.m. Monday, Nov. 23, at the Vineyard Community Church, Macomb. Lunch will be served. There is no charge for members and $10 for nonmembers. Call the Farm Bureau office at 837-3350 by Wednesday for reservations or more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday for a Thanksgiving dinner. Cost is $8. Wanda Cook, also known as Dora Merriweather, will provide the entertainment for a free-will offering. Call the Farm Bureau office at 217-532-6171 for more information. • The Prime Timers will sponsor a bus trip Wednesday, Dec. 2, to Our Lady of the Snows Shrine, Belleville. The bus will leave at 3:05 p.m. from Nokomis downtown
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park, 3:30 p.m. from the Farm Bureau office, and 3:45 p.m. from the former Kroger parking lot, Litchfield. The group will visit the gift shop, have a buffet meal, hear the St. Louis University mass choir, and see a display of lights. Cost is $33. Call the Farm Bureau office at 217-532-6171 for more information. E O R I A — The citrus and nut order deadline is Monday, Nov. 23. Florida Farm Bureau oranges, grapefruit, and tangelos are available in 20- and 40-pound boxes. A variety of Terry Lynn nut products are available in one-pound packages. Delivery will be on Wednesday, Dec. 16, to the Farm Bureau office.
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Call the Farm Bureau office for more information. ANGAMON — The Women’s Committee will sponsor its annual luncheon and seminar at 10 a.m. Thursday at the Northfield Center, Springfield. Bob Bunn, Bunn-O-Matic, and Dawn Eck, who will demonstrate quilting a holiday ornament, will be the presenters. Cost is $15 for members and $25 for non-members. Call the Farm Bureau office at 753-5200 for reservations or more information. ERMILION — Farm Bureau will sponsor a defensive driving program for members who are 55 and over. The program will be from 10 a.m. to 3 p.m. Tues-
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day and Wednesday, Dec. 1-2, at the Farm Bureau auditorium. Participants must attend both days to receive a discount on their auto insurance. Cost is $35, which includes lunch. Call the Farm Bureau at 217-442-8713 for reservations or more information. HITE — Kevin Rund, senior director of local government, will be the speaker at an “on the road” seminar at 7 p.m. Tuesday, Nov. 24, at the Farm Bureau office. Topics will include universal carrier registration, weight limits, and commercial driver’s license requirements. Call the Farm Bureau office at 618-382-8512 for reservations or more information.
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Chris Collins of Elburn, who donated the proceeds from 100 bushels of his corn harvest to the Kane County Harvest for All program, unloads corn from a grain cart into a waiting semi. (Photo by Steve Arnold, manager of Kane County Farm Bureau)
The harvest season brings hunger relief in Kane County BY RYAN KLASSY
Nearly 40 farm families, agricultural businesses, and individual donors have raised more than $10,000 in the Kane County Farm Bureau’s Harvest for All campaign to help restock the shelves of local food pantries. Through Harvest for All, producers donate a portion of the proceeds from this year’s harvest to a Kane County food pantry of their choice. Non-farmers joined in the effort with cash donations. In addition to making pledge forms available at the Farm Bureau office and on its website, Kane County Farm Bureau staff and volunteers distributed maps that designate farm locations of Harvest for All participants and pledge forms to local grain elevators to give farmers a chance to sign up for the program as their grain crosses the scales. Thus far, the value of all cash contributions and crops contributed or pledged is well over $10,000 and includes the proceeds from an esti-
mated 1,100 bushels of corn, 300 bushels of soybeans, 200 bushels of wheat, and an acre of hay. Donations also included vegetables plants for a food pantry community garden, fresh eggs, vanloads of fresh vegetables, and $1,700 in cash. Pledges and donations have been designated to benefit a dozen local food pantries and one regional food bank. The program has been named a national award winner in the American Farm Bureau Federation’s (AFBF) “County Activities of Excellence” recognition program. Volunteers will share the program’s success with other Farm Bureau leaders at the AFBF annual meeting in Seattle, Wash., in January. For more information about the program, go online to {www.kanecfb.com} and click on the Harvest for All link at the top of the page, or call the Kane County Farm Bureau at 630-5848660. Ryan Klassy is the information director for the Kane County Farm Bureau. He can be reached at 630-5848660.
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MARKETS
BNSF purchase
Grower: Big money could mean good things for ag rail BY MARTIN ROSS FarmWeek
Recent news of billionaire investor Warren Buffett’s plan to buy BNSF, one of the nation’s top rail carriers, has generated industry speculation — as well as some skepticism. But Southern Illinois soybean grower C.W. Gaffner suggests an infusion of highprofile capital may be just what is needed for the rail industry and ag transportation at large. Gaffner, a Greenville grain/dairy producer and Illinois Soybean Association state director, viewed the
changing commodity distribution system firsthand during a recent soybean and grain transport conference in New Orleans. Faced with at-dock delays that can cost thousands per day, shippers and handlers at the Port of New Orleans seek speed — “fast unloading and fast loading,” he related. At the same time, industry analysts anticipate steady growth in containerized shipping traffic, from 96 million “boxes” in 2007 to perhaps 243 million containers moving annually through U.S. ports by 2024.
A combination of higher freight volume and the desire for more rapid turn-
favors moving more longdistance freight from the nation’s congested high-
‘Hey, somebody has to step in.’ — C.W. Gaffner Illinois Soybean Association
around underlines the need for a better railroad system, Gaffner maintained. He acknowledged that rail is “just one piece of the puzzle,” but he
ways to the railroads. He also noted that while the Mississippi barge system is slated to receive federal funds for navigational improvements, rail infrastructure
improvements are almost wholly reliant on private investment. BNSF is the world’s top “intermodal” transporter of truck trailers and container cargo — one BNSF intermodal train reportedly hauls the equivalent of 280 semiloads. Buffett, a key BNSF shareholder whose firm, Berkshire Hathaway, has bid $34 billion for the carrier’s remaining stock, predicted “we’ll have more people moving more goods 10, 20, 30 years from now.” “I’m sure glad Buffett is doing this,” Gaffner said. “I’m concerned about it a little bit, but, hey, somebody has to step in.” Upon its impending acquisition of BNSF, Berkshire Hathaway reportedly will sell its 2 percent, 9.5 million-share stake in Union Pacific, as well as its 1.9 million shares in Norfolk Southern. Senate Finance Chairman Max Baucus (D-Mont.) met recently with Buffett and stated he will keep “a close eye” on BNSF to ensure “a fair shake” for producers.
USDA plans new pork buys Ag Secretary Tom Vilsack last week announced USDA will purchase as much as $50 million worth of additional pork products. The pork purchases will be used for various federal food programs, including the school lunch and school breakfast programs, and are intended to help struggling pork producers who have been mired in a two-year economic slump. A number of farm groups, including the National Pork Producers Council (NPPC), Illinois Pork Producers Association, and Illinois Farm Bureau, requested the additional purchases. U.S. pork producers since September 2007 have lost $5.4 billion, according to NPPC. The pork buy is the third supplemental purchase this year — USDA bought $25 million of pork in March and $30 million worth in September.
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PROFITABILITY
Managing biodiesel blended fuel in cold weather BY BRIGETTE HARLAN
Leaves are falling, there is a chill in the air, and the local high school football teams are dominating the news. These are pleasant indicators that autumn is upon us. So far, this year has been particularly damp and cold, which Brigette Harlan means extra care must be taken with biodiesel blended fuels to avoid unexpected operability issues. Much of the diesel fuel in
the State of Illinois is an 11 percent biodiesel blend (B11). Like conventional diesel fuel, biodiesel blends are susceptible to gelling when the temperature drops. We see a wide range of cloud points (the temperature at which crystal formation begins) in Midwest fuels, but the typical B11 blend has a cloud point of 10-12 degrees Fahrenheit. Historically, No. 2 diesel fuel has been blended with No. 1 diesel fuel to help dilute the wax concentration, but today, No. 1 diesel fuel tends to be expensive and difficult to source. Now the treatment of
choice is using cold flow improver (CFI) additives such as FS SURE-FLO. Cold flow improvers work to lower a fuel’s cold filter plug point by modifying the size and shape of wax crystals, allowing the fuel to flow freely through a vehicle’s fuel system. When treating biodiesel blends, we recommend using a 2X treat rate opposed to a single rate when treating conventional diesel fuel. Other common cold weather operability issues can be caused by having water in the fuel. When possible, keep storage, implement, and vehicle tanks full. This leaves little
room for condensation in the air space above the fuel as ambient air temperatures change. Because biodiesel is slightly more susceptible to water contamination than diesel fuel, we recommend blending it with a base fuel such as FS Dieselex Gold that contains a moisture control additive. Partnering FS Dieselex Gold with SURE-FLO (containing deicer chemistry) provides additional moisture protection. In a perfect world, stored fuel, including fuel that will sit more than eight hours overnight in a vehicle or
implement tank, should be kept at 10 degrees above the fuel’s cloud point. When and if possible, pay attention to local forecasts and keep vehicles in a garage or other storage area out of the direct elements. Your FS energy salesperson is an excellent source of additional information and can assist you in developing a plan for operating with biodiesel blended fuel this autumn and throughout the year. Brigette Harlan is GROWMARK’s renewable fuels product manager. Her e-mail address is bharlan@growmark.com.
Is weak dollar a good thing for U.S. agriculture? BY DANIEL GRANT FarmWeek
Some farmers may want to be careful what they wish for when it comes to the value of the U.S. dollar. A weak dollar has been credited with boosting sales of U.S. ag products overseas and thereby increasing demand and prices for grain. “Weakness of the dollar does tend to boost demand for (U.S.) grain,” said Dale Durchholz, AgriVisor market analyst. “The weak dollar and inflationary fear also have people in the investment community looking at commodities as an asset to own” which could
put a floor under prices, he said. Corn and wheat prices last week were cheap relative to gold and “slightly cheap” relative to crude oil, according to the analyst. So is the fact that the value of the dollar declined 4.9 percent from Sept. 1 through last week and recently dipped near historic lows a good thing for agriculture? Not necessarily, according to Durchholz and Danny Klinefelter, Texas A & M Extension economist. A weak dollar also drives up the cost of imports, makes consumer goods more expen-
M A R K E T FA C T S
sive in the U.S., and could lead to higher interest rates. “A weaker dollar doesn’t necessarily help us (in agriculture),” said Klinefelter, who noted that nearly half of U.S. debt is held by foreign investors who could pressure
Feeder pig prices reported to USDA*
Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $27.00-$38.03 $34.12 n/a n/a n/a n/a This Week Last Week 17,987 28,595 *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 $51.92 $52.08 $38.42 $38.54
Change -0.16 -0.12
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week 84.32 84.40
Prv. week 86.78 87.00
Change -2.46 -2.60
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) This week Prev. week Change 93.57 93.21 0.36
Lamb prices Confirmed lamb and sheep sales This week 950 Last week 844 Last year 631 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $99; 110-130 lbs., $90--$93. Good and Choice 1-2: 60-90 lbs., $110. Slaughter Ewes: Utility and Good 1-3: $29-$32. Cull and Utility 1-2: $29.
Export inspections (Million bushels)
Week ending Soybeans Wheat 11-05-09 59.9 17.2 10-29-09 65.9 12.0 Last year 36.1 13.0 Season total 283.1 377.8 Previous season total 232.5 551.9 USDA projected total 1325 875 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
The U.S. dollar index is a measure of the U.S. dollar relative to a basket of foreign currencies. It was started in March 1973 with a value of 100. Since that time it has traded as high as the mid-160s and as low as 70.69 in 2008. This graphic shows the dollar’s decline since summer.
Corn 26.9 25.9 27.3 324.5 305.4 2100
the federal government to raise interest rates. Farmers also are affected by a weak dollar in the form of higher input costs, Klinefelter said. The U.S. currently imports more than half of its nitrogen,
about 90 percent of the potash used on farms, and more than 60 percent of its oil. “The value of the dollar is a barometer of the basic economic health of your country,” Durchholz said. Therefore, “cheering on a weak dollar has negative economic implications. It elevates the cost of goods” entering the country, he maintained. “We need money coming in (from foreign investors) to fund the deficit and industry. So in time a weak dollar becomes counterproductive,” Durchholz said. Crude oil prices last week surpassed $80 per barrel despite the fact that U.S. crude stocks increased by 1.2 million barrels, according to the American Petroleum Institute. Meanwhile, the U.S. economy still is on shaky ground. The U.S. unemployment rate last month hit 10.2 percent, which reportedly is the highest since 1983.
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PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Investment money remains a driving force Amid all of the turmoil over the future of investment money in commodity markets, it continues to be a driving force. Uncertainty in that sector escalated with comments coming out of the Commodity Futures Trading Commission (CFTC) last spring and summer about excessive speculation. When the CFTC ordered Deutsche Bank to adjust holdings in two of its exchange traded funds (ETFs) at the end of summer, uncertainty ratcheted even higher. There was talk other ETFs might be forced to make changes, or that changes may be coming for the big commodity index funds. The release of the new trader data from the CFTC went a long way toward calming everyone’s nerves. That data confirmed what some
Basis charts
had been saying — the money in the big index funds largely was not responsible for the surge in energy prices in 2008. Money started flowing back into commodity index funds at the beginning of 2009, accelerating in the second quarter. Even with the summer price weakness, there’s little reason to think it slowed down in the third quarter. The rebalancing of the two largest commodity indices, the Goldman Sachs Commodity Index and the Dow Jones-UBS Commodity Index, in the next month will have market implications. Funds following these two are estimated at $104 billion. Generally, both are shifting some of their holdings away from energies and precious metals and into agricultural markets, grains in particular. The chart showing the relative value of corn vs. gold hints why this shift is taking place, at least in part. It’s thought the rebalancing could increase the long positions tied to these funds by 65,000 contracts in corn, 25,000 in wheat, and 18,000 in soybeans. The Goldman index will shift some money into livestock, while the Dow Jones will shift some out. On balance, though, long positions should increase in lean hog and live cattle futures. The new weightings will take affect in early January for both. Given that, funds following these indices should start to shift positions toward the new weightings sometime in December. Given the rally grain markets have enjoyed, it’s possible this additional buying could coincide with short-term market peaks; maybe even longer-term peaks. AgriVisor endorses crop insurance by
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Cents per bu.
2009 crop: Prices continue to move upward, but rallies are being “capped” by an active harvest. December futures appear to have limited downside risk below $3.50. Wait for strength before making a sale, even to price corn for harvest delivery. If December futures rally to $4.25, boost sales to 50 percent. Check the Cash Strategist Hotline frequently for changes. We might increase sales even more if that is hit. Because of the large futures carry, a hedge-to-arrive contract for April through June delivery may be the best pricing strategy. If you are a cash seller, check forward bids. Fundamentals: USDA surprised the trade, lowering its production estimate to 12.921 billion bushels, a little more than expected. Given the lagging harvest, that might be revised down even more in the Jan. 12 report. Weather and drying issues will continue to drag this year’s harvest out.
Soybean Strategy 2009 crop: Soybean prices managed to move higher last week despite the largerthan-expected USDA forecast. A close above $10 on January futures would open the door for a potential challenge of resistance at $11. Target a move to $10.80 on January futures to boost sales to 50 percent. Check the Cash Strategist Hotline frequently as we could adjust targets at any time. We might even boost sales further. Fundamentals: The November USDA crop estimate, 3.319 billion bushels, was a little larger than anticipated, but it had only a short negative market influence. The trade is watching the influence of “outside” markets and South American crop conditions as close, if not closer, than the U.S. crop. Brazilian conditions generally have been favorable, with planting now 31 percent complete, which is ahead of normal. Argentina is facing a more troublesome situation, with dry soils slowing planting, which is now 12 percent
done, and threatening potential as the season gets under way.
Wheat Strategy 2009 crop: The longterm trend in wheat continues to have an upward bias, with prices holding key support levels when they decline. Going forward, we anticipate more of a sideways trend, but one that has a slight upward bias. Use rallies to $5.50 on Chicago December futures for catch-up sales. Target a move near $5.70 on the December futures to consider additional sales.
2010 crop: We are considering an initial sale if Chicago July futures approach $6.50. Fundamentals: The November USDA report was considered a little negative, adding to the fundamental drag on prices. The 2009/2010 U.S. ending stocks are now estimated at 885 million bushels, resulting in the largest stocksto-use ratio since the late 1980s. However, prices still draw underlying support from the anticipated drop in soft red winter wheat plantings and active investor interest.
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PERSPECTIVES
FACING FRUSTRATION
You can’t control the weather, but you have options to help you cope this fall Jubilant about prospects for record or near-record nephrine (i.e., hormones that accompany a sense of engaged in positive activities also produces these corn and soybean crops, now farmers are worried and well-being). So, visit with friends, neighbors, and essential hormones. We can indulge in our favorite depressed about the 2009 harvest. make complaining a positive coping device. pastimes and in creative outlets. How can we cope when we Watch what you think about. Building something new, reading stimulating books MICHAEL see corn ears dropping, soyYes, it’s mind over body. What we think about tells and articles, and engaging in vigorous physical exerROSMANN bean pods shedding their our body how to cope. When we are alarmed, brood- cise, hobbies, and music all stimulate the production seeds, and the quality of grains ing, worried, or angry, our bodies don’t produce sero- of serotonin and norepinephrine. Physical exercise is guest columnist and oil seeds slipping on a daitonin and norepinephrine. particularly beneficial in producing serotonin. ly basis? It’s not easy to mainInstead, the brain sends a signal to our adrenal Be ready when good weather arrives. tain an upbeat disposition when our economic wellglands to become alarmed. Farmers are practical people who get their machinbeing is threatened. But, there are some things we can It’s appropriate to become alarmed when we first ery in tip-top shape when the weather is bad outside. do behaviorally to improve our coping. detect a threat, so that we can evaluate it and deterHow about lining up additional help so that harvest Complaining helps. mine if we need to fight it or take flight from it. can proceed easier when the weather allows? Arrange There are several reasons why complaining helps. But if we evaluate a long-term threat, such as rainy for trucks to be available when you begin harvesting First, sharing our concerns helps reduce our anxiety. day after rainy day, by dwelling on the negatives, we again. Ask relatives and semi-retired farmers if they When others listen with understanding, we feel emodeplete our bodies of serotonin and norepinephrine. can help when the weather improves. tionally comforted. Be sure to not overtax Second, talking about yourself when you harour worries usually leads vest. Becoming sleep others to give us feedback, deprived by putting in It is so exciting to drive a comout the window at the sheets of flu, trade embargoes. which helps confirm that extra long days and nights bine and watch that water coming from a dark sky. I To survive in this business, you during favorable harvest we have good reasons to big machine, like began to reflect on this business must persevere and not make too weather can increase your be worried or perhaps just magic, sort out the of farming. many mistakes. If you can sucthe opposite, that we are risks for injuries and kernels of corn You work for months to bring ceed, the reward is not just meaunnecessarily stressing out machinery breakdowns. from the trash. your grain and livestock to market. sured in money, although you need about circumstances that Researchers have found That golden grain You have to do that. You need the the money to survive. aren’t as bad as they might that accumulated sleep flowing out of the money to pay your operating loan The reward is an exhilarating seem when we brood on debt of 10 hours (in other auger into the at the bank. sense of satisfaction when you see words, that’s two hours of them alone. Feedback JOHN truck is a beautiful You also are going to need what you have produced — helps us determine if our reduced sleep for each of BLOCK sight. enough money to buy nitrogen mature market hogs, golden grain. five days/nights) is similar worries are reasonable. Before starting and seed for next year. Maybe a litAnd it all started early in the Third, talking about our physiologically to 0.08 to harvest, we sent tle more to live on or buy a piece year when you turned the boar in blood-alcohol level. concerns may help us a load of hogs to market. It’s hard of machinery you need. When you with the sows, when you planted develop alternatives to When we are sleep are finished with one crop, you those little seeds in the soil. worrying, such as becom- to imagine those lean, hard 250deprived, our reaction start all over again. Halleluiah, the sun was shining time is slower. We are ing engrossed in conversa- pound animals could be ready for market. Just six months ago, they I don’t need to tell you this has again. We’ll get this crop out and more prone to verbal and tions or finding projects to were born weighing about 2 been a tough year for many farmbe there for another year. capture our attention when motor mistakes and more pounds. ers. The volatility in prices has we can’t harvest. Humans apt to make misjudgAbout the time we got really been a challenge —and then the John Block of Gilson, a former U.S. are social beings who need ments. rolling in the corn field, the rains wet spring, wet fall. It has never agriculture secretary in the Reagan emotional support from My suggestions, in came. Like they have all fall. been an easy business. That’s one administration, is a senior policy adviser many ways, are good comothers, and complaining reason we’ve lost so many farmers. with the Washington, D.C., firm of can help us obtain this nec- Rained out again. mon sense. The part that After that, I found myself sitThere are so many variables Olsson, Frank, Weeda, and Terman, essary understanding. most farmers don’t underting at my farm desk in our that we can’t control — floods, which specializes in ag issues. His eBut, if we complain stand is how we can conmail address is jblock@ofwlaw.com. only to make others as mis- machinery repair building, looking droughts, price, mad cow, H1N1 trol our serotonin and erable as we are, complainnorepinephrine levels by ing becomes a useless tactic and drives people away. Sleep becomes difficult and not restful. the way we behave. We should label our feelings by saying things like, We become consistently keyed up and also We can’t control the weather or markets, but we “I’m worried and I don’t what to do,” or “Do you depressed as our body alternates between arousal and can control our behavior — for the most part. Keepthink my worries are reasonable?” Be sure to say tiredness. We need breaks of many hours and even ing ourselves in optimal running condition makes us “Thanks for listening.” days from worry. more likely to succeed as farmers. Research has confirmed the comfort that comes How do we get these breaks? By controlling what from receiving positive understanding reduces the we think about, we tell our bodies to remain on guard Dr. Michael Rosmann is director of AgriWellness Inc. of production of adrenaline and cortisol (i.e., bodily or to decompress and relax. Harlan, Iowa. AgriWellness is a nonprofit organization devothormones that signal distress and depression) and Just like positive complaining can help produce the ed to improving the behavioral health of agricultural people. increases the production of serotonin and norepiserotonin and norepinephrine we need, becoming The website is {www.agriwellness.org}.
Farming, rain delays, perseverance