“BANKS ARE OPEN, and credit is available,” according to bankers at an ag banking conference. But getting credit may not be as easy as in the past. .......................2
OFFICIALS WITH USDA and the U.S. Department of Commerce plan to announce federal funding for broadband projects in mid-December. More to come. ............................5
THE WET WEATHER that is causing so much trouble with corn and bean harvest did a number on the pumpkin crop in Illinois this year. ................................8
Monday, November 23, 2009
Two sections Volume 37, No. 47
Propane availability remains tight
Similar situation could occur with nitrogen next spring BY DANIEL GRANT FarmWeek
Harvest delays created by steady rains last week did little to ease challenges associated with the distribution of propane statewide. In fact, the additional delays could make things worse as farmers attempt to harvest and dry the rest of a wet corn crop, according to Chris Salrin, director of propane operations for GROWMARK. Salrin discussed the situation last week during a meeting with the Illinois Farm Bureau board in Bloomington. “What we’re seeing is the pipeline simply cannot keep up with demand (for propane to dry grain) given the late harvest and high moisture (of the grain),” Salrin said. “Looking forward, we still have a lot of grain to be harvested,” he continued. “As it (harvest) moves into December, we’ll have home heating demand” compete for propane supplies as well, he said. Many local retailers in Illinois were unable to stock up on propane last week during the harvest delays because available supplies were being diverted to other areas of the Corn Belt
where farmers still were harvesting and there was immediate demand, according to Salrin. The distribution challenges likely will continue for at least the next few weeks — Illinois farmers as of the first of last week still had 48 percent of the corn crop left to harvest. “Things are very tight. It’ll continue to be touch and go,” Salrin said. “Prices at hubs haven’t moved a whole lot, but in time I think they’ll inch higher.” Meanwhile, a similar situation is brewing in the fertilizer sector. Spring prices for nitrogen recently pushed higher, indicating demand for fertilizer could outstrip the ability to supply it next spring, according to Joe Dillier, director of plant food at GROWMARK. “We had some pretty good activity (with fall fertilizer applications) up until last week. But we’re still way, way behind,” Dillier told FarmWeek. As a result, “We’re already seeing substantial increases in the price of nitrogen for the spring of 2010.” Farmers are running out of time to apply anhydrous ammonia this fall, but getting
spring-priced nitrogen,” Dillier said. “Now that spring nitrogen is moving up, fall ammonia prices are even a more attractive value.” Retail prices for anhydrous
ammonia, as of Nov. 17, averaged $395 to $460 per ton across the state, according to an Illinois Department of Agriculture survey.
WAITING OUT THE WEATHER
This wait, then hurry up, then wait harvest season has led to many a scene such as this in the office of the Niantic elevator as farmers and others gather around coffee pots to commiserate over the rainy weather. Sharing stories of weather woes last week were, from lower left, John Dunn, a farmer; Tyler Lyon, an Evergreen FS propane salesman; Richard Eckhart, whose wife owns farm ground; Dan Miller, a farmer; Steve Stahl, a farmer; Dennis Hartwig, a farm worker; Dan Carr, a farm worker; Bob Moore, a local resident; Mike Stacey, a farmer; and Jim Waddell, a farmer and secretary of the Macon County Farm Bureau Board of Directors. (Photo by Ken Kashian)
FSA changeover blamed for ‘multi-faceted’ problems BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
their anhydrous applied likely will be worth their time — if they get a chance. “Fall ammonia prices have been a good value relative to
Simultaneous changes in federal farm program procedures, rules, and technology have created headaches for some Illinois producers and state and county Farm Service Agency (FSA) officials. Illinois Farm Bureau risk management specialist Doug Yoder reported harvest-stressed growers are encountering “multi-faceted problems” including electronic deposit of some program payments in wrong accounts, single lump-sum payments for separate program farms, and thousands of FSA letters informing program recipients nationwide — many erroneously — that they owe USDA money. “I got five (letters),” IFB board member Chuck Cawley informed other state directors
last week. Board colleague Dale Hadden said he fears the notification letters are “confusing landlords.” Yoder is concerned about current glitches in program payments and paperwork emanating from FSA’s Kansas City regional offices as USDA prepares to mail 1099 tax forms to program participants. Further confusion could result in producer tax issues that could affect individual farm credit for the season ahead, Yoder said. FSA Illinois program manager Stan Wilson noted ongoing efforts to correct the problem(s), and urged producers or farm landlords who believe they have erroneously received FSA “collection” letters or have experienced payment errors to immediately contact
FarmWeek on the web: FarmWeekNow.com
their county FSA office. “Our Kansas City folks who deal with software programming issues and our fiscal people and the people who work with them in Washington have been working diligently to address these issues and resolve them as fast as they can,” Wilson told FarmWeek. FSA reportedly was to issue new letters to program participants who received erroneous debt notifications and re-notify recipients with “legitimate debts.” Current problems are related in large part to delays in implementing 2008 farm bill provisions that were not effective until the 2009 program year, resulting in FSA distributing 2009 advance program payments under previous rules and procedures before switching mid-year
to a revised system and related new USDA computer software. Under the old system, Wilson noted, county FSAs “had a great deal of control” in signing and distributing farmers’ checks. Now, Illinois payments are processed through the U.S. Treasury via FSA’s Kansas City office and, frequently, are directly See FSA, page 4
No FarmWeek next week There will be no FarmWeek published next week. FarmWeek is published 50 times a year, with no issues on the Mondays following Thanksgiving and Christmas. The next issue you receive will be dated Dec. 7.
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, November 23, 2009
Quick Takes NAMED OUTSTANDING FARM FAMILY — Illinois Farm Bureau Director Dale Hadden of Jacksonville and his entire family were honored recently by being named Illinois Farm Family of the Year. The award, sponsored by Burrus Hybrids and Illinois AgriNews, honors an outstanding Illinois farm family for its farming efforts and community involvement. The presentation was made prior to the IllinoisNorthwestern football game. Hadden, his parents, and brother raise about 5,000 acres of corn, soybeans, wheat, and alfalfa and grass hay and have a 250-head beef cattle operation. They also operate Hadden Seed Corp., which sells Pioneer seed, and the family sells cattle-handling equipment. The Haddens were presented a plaque and yard sign and other gifts from the award sponsors. Hadden was nominated for the award by IFB President Philip Nelson. CLIMATE BILL STALLED — American Farm Bureau Federation President Bob Stallman applauded the decision by Senate leaders to delay consideration of climate change legislation until the spring of 2010. The move “offers a great opportunity for lawmakers to go back to the drawing board and reassess the need for this legislation and the impact it will have on all Americans,” Stallman said. “Legislation previously approved by the House, and a similar bill approved on a party-line vote by a Senate committee, would impose higher energy and food costs on consumers,” Stallman said. “The bills also would create an energy deficit due to limited alternatives. “Farmers and ranchers would see higher fuel, fertilizer, and energy costs. And the cap-and-trade provisions would do little more than downsize American agriculture and our ability to produce food in this nation. “None of those is acceptable results to us, and we will continue to tell our members of Congress, ‘Don’t cap our future.’” SMART ENERGY FUTURE — Standards for energy conservation technology would offer the U.S. longterm benefits, the chairman of GE Energy told state utility regulators last week in Chicago. “I think standards will have a bigger impact over time,” John Krenicki said. “The U.S. is making good progress now, but I think the European Union’s (EU) smart (technology) standard will have a bigger impact.” The EU’s goal is to have smart meters in 80 percent of the homes by 2022, Krenicki noted. Smart meters can track energy use and send that data to power companies. The meters also reduce the companies’ costs because they would not need meter readers and could fix outages more efficiently. He said the power industry and its customers are “information starved.” Companies could address energy losses if they learned at what point those occur, and customers could lower their energy costs with more information about their energy usage.
(ISSN0197-6680) Vol. 37 No. 47 November 23, 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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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard Advertising Sales Manager
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FINANCE
Bankers: Ag credit available but not necessarily ‘easy’ BY MARTIN ROSS FarmWeek
The farm lending game has changed, thanks in large part to players outside the ag arena. But producers willing and able to “up their game” should be able to stay in play. That’s according to American Bankers Association (ABA) Chairman Arthur Johnson, who reported “banks really do have ample funds to make farm loans in 2010 and into the future.” “Banks are open, and credit is available,” ABA Ag and Rural Bankers Association Chairman Curt Covington told FarmWeek during ABA’s ag banking conference last week in San Antonio. Further, banking consultant David Sandler sees reduced interest rates continuing into September 2010 as the Federal Reserve seeks to bolster the “top 19” U.S. banks. Johnson nonetheless anticipates “available but not easy” credit. Financial sector fallout has spurred regulatory scrutiny of bank books, sweeping financial reforms proposals, and a push for wider bank margins and capital reserves. Meanwhile, recent Pilgrim’s Pride and VeraSun defaults and their impact on producers, along with sagging dairy, pork, and biofuels profits, have ag lenders focusing more intently on the fine print of contracts and cash flows. “This may have been the ‘Golden Age of Agriculture’ we just exited,” Covington lamented. “Among both bankers and producers, providing quality financial information and solid business and expansion plans tended to become a backburner issue. Everyone got very comfortable with what was going on in their specific
industries and the economy. “Things have changed: There’s kind of a paradigm shift out there. We’ve had shocks in a couple of industries: Obviously, we’ve had some unprecedented losses in the dairy business, and the swine business has been in the doldrums for at least 18 months. No. 1, without a doubt, the quality of (farmer) financial statements is going to be important.” Covington thus advises producers to work more closely with financial consultants and farmers and bankers to keep mutual lines of communication open. Despite recent events, he believes “venture capital will still have a good relationship with banks.” But in the wake of VeraSun, lenders will seek to ensure prospective producer contracts are airtight and farmers have analyzed the marketing risks of a new venture, Covington said. As financial challenges sort out, Sandler anticipates larger and smaller banks will survive but there will be a loss of mid-sized institutions. That should result in a return to more community-based banking, he said. At the same time, Covington suggests interest rates will remain at “fairly historic lows” into fall 2010 as the Fed moves to protect major lenders from a “double-dip recession.” “I wouldn’t tell you the cost of ‘renting’ money is going to be the same as it used to be,” he advised, nonetheless. “You can’t go through cycles of low interest rates and high credit demand and not eventually see the cost of borrowing go up. Banks’ cost of renting money continues to go up. We can’t absorb all of it.”
Bankers challenge Farm Credit Administration
FCS policy specialist: FCA ‘strong’ regulator As commercial bankers propose moving home mortgages and Farm Credit Services (FCS) loans under a single regulatory roof, a spokesman for the nation’s largest Farm Credit bank suggests “they should be worrying about their own house.” At last week’s American Bankers Association (ABA) ag bankers conference, financial industry consultant Bert Ely urged Congress to consider merging the Federal Housing Finance Agency (FHFA) and the Farm Credit Administration (FCA), which oversees FCS operations and practices. Ely called FCA a “captive cheerleader” served by former Farm Credit lenders more concerned about agriculture’s long-term welfare than about “the broad public interest.” In 2010, the administration is expected to propose a plan for restructuring the Federal National Mortgage Association, known as “Fannie Mae,” a congressionally chartered government sponsored enterprise (GSE) placed under FHFA conservatorship roughly a year ago.
Ely suggested the proposal would raise questions about how other GSEs such as Farm Credit should be regulated. Because GSEs have “one foot in the private sector and the other in the public sector,” FCS can “borrow cheaply” relative to commercial banks and is exempt from income taxes on real estate lending profits, said Ely. Ely favors a single GSE regulatory director rather than an FCA-style board, arguing the latter allows regulators to “plug in” ag industry advocates. Critics who see FCA as a captive regulator “aren’t there when (FCA) examiners come to the associations or institutions,” countered David Ladd, government affairs manager with AgriBank, which provides funding for Farm Credit Services of Illinois, Illinois’ 1st Farm Credit Services, and associations in 14 other states. Ladd fears a single GSE regulator would have little regard for the “safety and soundness” of production agriculture. Under FCS’ co-opbased system, farmer-owners
would bear the costs of likely new GSE regulations, he said. “We have a strong, independent, arms-length regulator the way it is,” Ladd told FarmWeek. “We’re under the jurisdiction of the Agriculture Committees — they put some very good borrower’s rights provisions in the Farm Credit Act that commercial banks don’t necessarily adhere to. “The FCA, the House and Senate Ag Committees know how agriculture operates.” While Ely conceded Farm Credit continues to be financially healthy, he said non-performing loans are on the rise, and charged FCA is “dropping the ball.” He warned of new system consolidation as “weaker associations” merge to regain financial footing. Ladd anticipates fervent resistance to the single-regulator concept particularly by House Ag Chairman Collin Peterson (D-Minn.). Peterson last week blasted proposed regulatory reforms that could give the Federal Reserve final word in regulating commodities futures markets and FCS. — Martin Ross
FarmWeek Page 3 Monday, November 23, 2009
IFB ELECTIONS
Candidates for president of Illinois Farm Bureau Candidates are listed alphabetically
Philip Nelson Philip Nelson and his wife, Car men, operate a fourth-generation grain and livestock farm near Seneca. They have a son, Kendall, and a daughter, Rachel. The grain farm produces corn, soybeans, and alfalfa. T h e l i ve s t o ck o p e r a t i o n includes a wean-to-finish hog operation and a cattle feeding operation. Nelson is 52 years old.
Doug Wilson Doug Wilson, 52, is a four th-generation far mer who owns and operates a corn and soybean farm in southwester n Livingston County. Doug and his wife, Darla, have two college age sons, Joshua and Noah. He is a long-time member of Farm Bureau, a graduate of ALOT, and a member of the Illinois Corn Growers and Illinois Soybean Associations. Wilson recently served as director of USDA Rural Development in Illinois.
Statement of candidacy In addressing the question of why I am seeking re-election as president of Illinois Farm Bureau, my purpose is to lead, serve, and represent the membership of this organization. Six years ago, I was fortunate to be elected as your leader to head up this organization. Over the last six years, we have restored credibility in Springfield and Washington, pushed back two major initiatives by a previous governor, taken an active role in the last farm bill, launched the Vision for Illinois Agriculture, pushed back animal activists proposals, and we have always
stood up for Illinois and American agriculture. At the same time, we have grown our organization to an all-time record of 421,919 members. I am proud of this grassroots strength. We need to continue to energize our base as we tackle pressing issues facing agriculture. As we look at the horizon of issues to address: climate change, health care reform, death taxes, animal care initiatives, and state budget challenges, we need to take leadership roles, but we must also flex our membership muscle in tackling these challenges. I have had the opportunity
to be involved in this organization for nearly 30 years. As a past Young Leader, county president, vice president, and now president, I bring these skill sets of leadership and knowledge of IFB to work for you. I believe IFB is one of the premier farm organizations in the country. By working together to tell our story, implement the Vision for Illinois Agriculture, and lead agriculture forward, I have no doubt we will have a bright future. I would appreciate your support in continuing to lead this organization forward.
Statement of candidacy I am running to become the next Illinois Farm Bureau president. During the last 20 years, I’ve worked to improve agriculture and rural life. My diversity of experience, the many organizations I’ve been involved with, and the countless contacts I have developed make me well equipped to lead the organization at this critical time. I’ve been a member of Farm Bureau for almost 30 years. I started working on behalf of agriculture at the local level and worked my way up, doing everything from organizing local promotions to offering testimony before Congress. I’ve been an elected township official and
received two U.S. presidential appointments. I’ve been interviewed by national and international media, including CNN, CBS, London Financial Times, and the BBC, on many topics. I’ve worked with legislators for over 15 years and am known as an effective and creditable leader. Administratively, I led a multi-billion dollar federal agency that more than doubled its productivity and invested billions of dollars into rural Illinois. IFB needs to be looking forward to meet the many challenges that agriculture and rural Illinois are facing. Just as we have adapted our farming operations, we need to ensure that
IFB is well positioned to represent us in an ever-growing and complex world. Agriculture needs to come together and overcome the countless issues before us. I pledge to the members of IFB and Illinois agriculture to do everything I can to improve our standing. Working together, we can move forward and rise to meet the challenges, capture the opportunities, and live up to the standards this great organization was founded on. I’m not afraid to ask hard questions or stand fast in adversity. I offer fresh eyes and ideas to an organization that needs to play a leading role now more than ever.
Candidate for vice president of Illinois Farm Bureau
Richard Guebert Jr. Richard Guebert Jr. and his wife, Nancy, live in Ellis Grove. Gueber t and his son, Kyle, operate a farm where they grow corn, soybeans, and wheat. Guebert is 58 years old.
Statement of candidacy Having served as your Illinois Farm Bureau vice president for the past six years, I am seeking re-election and ask for your continued support. Member involvement in our policy development process is what makes IFB truly a premier grassroots organization. The vice president is chairman of the Resolutions Committee (RC). It is in this committee that your ideas and concerns are developed into policies which are passed at the IFB annual meeting, giving direction to leadership, the board, and staff for implementation. Earlier this month, the RC
met and acted on the submittals presented by members such as redistricting, term limits for lawmakers, animal welfare, conceal and carry, and animal ID, to name a few. The IFB vice president is also chairman of the Finance Committee, which is charged to present the board with a balanced budget providing programs, staff, and services for members while maintaining the financial strength of IFB. In today’s world, multiple issues have a direct or indirect effect on Illinois agriculture. One such issue is the passage of Proposition 2 in California, and similar laws in other states,
dealing with animal welfare. IFB has been working with agribusiness and commodity groups to design and fund a campaign telling agriculture’s story. Illinois’ No. 1 industry will continue to prosper with member involvement in the policy development process and with all sectors of agriculture working together on common issues. As vice president, I will continue to support the president, the board of directors, and you, the members of IFB. I thank you for supporting me in the past and ask for your continued support as I seek reelection for IFB vice president.
FarmWeek Page 4 Monday, November 23, 2009
EMERGING ISSUES
Economist: Rising protectionism defines need for WTO BY MARTIN ROSS FarmWeek
With prospects rising for more global protectionism under the guise of food safety, public health, and dubious charges of commodities “dumping,” a Canadian economist last week told ag bankers “we need to get the WTO (World Trade Organization) back on track.” Larry Martin, senior fellow with Ontario’s George Morris Centre, sees pressure to continue protectionist actions motivated by economic or political concerns. Martin noted a near doubling of new “anti-dumping” complaints and cases in which countries have more imposed anti-dumping duties. WTO and North American Free Trade Agreement provisions approved in the 1990s have proven effective in reining in import tariffs and quotas, said Martin. Consequently, some nations have focused on using non-tariff barriers such as food safety or disease concerns or charges of dumping to limit imports and protect domestic production. “Every time we have a recession, people start protecting their local industries with all sorts of trade actions,” he told FarmWeek. “As
we’ve had this recession, we’ve seen an upswing. I don’t see anything right now that says it’s going to stop.” Canada itself has joined with Mexico to challenge U.S. country of origin labeling regulations those countries deem unfair to cattle and hog competition. Australia ‘ I don’t and New Zealand have says it’s lodged complaints against Canadian and U.S. dairy, and South Korea continues to ban Canadian beef, citing BSE concerns. The flurry of antidumping charges underlines the need for expanded trade negotiations, Martin said. He noted “dumping” was intended to refer to imports priced below the seller’s domestic market price. But through a loophole in current WTO provisions, the term has come to apply as well to subsidized goods allegedly sold below production costs. Meanwhile, China has been “overcompensating for its own bad record on consumer safety” — domestic scares involving products ranging from pesticide-treated ham to melaminelaced baby formula — by blocking
North American and European goods on questionable health or safety grounds, he argued. China recently agreed to lift a ban it imposed on U.S. pork following last
right, and center,” he said. Martin fears high U.S. unemployment could feed resistance to rather than a push toward approval of free trade agreements with Panama, Colombia, and Korea. Bilateral agreements currently are the U.S.’ “best tool” for combating trade challenges, he see anything r ight now that non-tariff said. (protectionism) going to stop.’ Martin’s hopes for reviving WTO talks fluctuate “depend— Larry Martin ing on what I read which day.” Economist WTO Director General Pascal Lamy warns 2010 U.S. mid-term elections could prove a challenge in finalizing talks. spring’s H1N1 outbreak. However, in At the same time, Canada’s relationorder to “make it look like they’re ship with the Cairns Group — a key protecting consumers” (and possibly WTO negotiating bloc which includes domestic canola growers), Chinese Canada, Australia, and New Zealand officials have placed tough restric— has become strained amid internal tions on Canadian canola susceptible disputes over dairy, poultry, and other to blackleg disease, although the com- goods. mon disease reportedly has no impact “We need to get the WTO back on product safety, Martin reported. on track,” Martin said. “And, someMartin sees bilateral trade talks as how, we really need to start expandthe best approach to economic or ing the whole set of (WTO) discipolitical pressures. plines around technical (health and Canada “has not spent the time we safety) regulations. It’s very clear should have to make sure we had guar- they’re going to be used more and anteed market access,” and as a result, more as we have fewer traditional trade attacks have been “hitting us left, tariff barriers.”
Annual meeting offers chance to sound off on cap and trade Those attending the Illinois Farm Bureau annual meeting Dec. 5-8 in Chicago will have an opportunity to express their displeasure over cap-and-trade legislation making its way through Congress. A table will be set up in the hospitality area of the Hyatt Regency Hotel at which annual meeting attendees may sign either a post card or a letter stating oppo-
sition to the legislation. IFB staff will collect the cards and letters and deliver them to the American Farm Bureau Federation (AFBF) by the end of December. AFBF staff will then deliver them to members of Congress on Jan. 5. The hope is to have 1,760 cards or letters signed, said Steve Simms, IFB promotion and graphic arts director. That represents about 2
percent of the voting membership of IFB — the goal AFBF has established for state Farm Bureaus. Farm Bureau has steadfastly maintained the proposed legislation would create an energy shortage, reduce food production, and hit agriculture particularly hard while having minimal impact on changes in the climate. Several county Farm
Look for this poster in the hospitality area during the annual meeting in Chicago to locate where you can sign a card or letter showing your displeasure over proposed cap-and-trade legislation.
FSA Continued from page 1 deposited in producer accounts. At the same time, Wilson said, “complex” changes in farm program eligibility and payment limits under the new farm bill necessitated major revisions in agency software, coupled with a decision to institute a new national payment system. Amid this “perfect storm,” as he called it, some fall payments have been delayed, overpayment
notices have been sent to producers, and in some cases, payments have been deposited in accounts other than those specified by the recipient. “This hasn’t occurred in the majority of cases, but if you’re one of those individuals who got the notification letter, it would upset you to get a letter saying you owe the government money when you really don’t, especially if you’re not familiar with farm programs.”
Bureaus have indicated they plan to conduct a similar
signing campaign at the county level, Simms said.
Certified livestock, manure management training to be offered for producers University of Illinois Extension is offering certified livestock manager and manure management workshops to provide new information and help producers comply with state livestock rules. The workshops start Dec. 15 and continue into early 2010. Advance registration is encouraged to allow participants to receive a manual in advance, which is especially important for those planning to take a written Illinois Department of Agriculture (IDOA) test following the workshop. The state Livestock Management Facilities Act (LMFA) requires producers with operations designed for more than 300 animal units to have manure management certification and to renew the certificate every three years. Producers with more than 300 animal units must attend an approved training session or pass a written IDOA test. Producers with more than 1,000 animal units must attend an approved training session and pass a test. The U of I also offers a series of five online quizzes at no charge. If a producer passes all five quizzes, he or she will meet the state requirement of attending a certified livestock manager workshop. To register for a workshop or buy a training manual or CD with a credit card, call 800-345-6087. Participants do not need a new manual if they have a 2003 or newer one. Advance workshop registration is $30 per person and $20 for each additional registrant from the same farm if registered at the same time. The walk-in registration fee is $92. Manual and CD prices, including shipping, are $62 for a manual, $32 for a CD, and $87 for a manual and CD. For more information, contact Randy Fonner, U of I Extension coordinator, at 217-333-2611, e-mail him at clmt@illinois.edu, or go online to {www.livestocktraining.com}. Workshops that begin at 8:15 a.m. will end at 12:30 p.m. and the IDOA exam will be administered afterward. The 9:15 a.m. workshops will end at 2 p.m., followed by the IDOA exam. The December workshop will be Dec. 15, 8:15 a.m., McLean County Farm Bureau Building, Bloomington.
FarmWeek Page 5 Monday, November 23, 2009
BROADBAND
Federal broadband announcements expected next month State supported 16 proposals BY KAY SHIPMAN FarmWeek
Christmas will come early for broadband projects that will be receiving federal stimulus funds in a nationwide competition. Last week in Chicago, officials with USDA and the U.S. Department of Commerce said the first round of winners will be announced in mid-December with more awards to be released in January and February. The federal agencies received more than 2,200 applications for seven times the amount of money available in the first round. A total of $7.2 billion will be awarded as broadband stimulus funding. “We can’t afford to let rural areas fall behind. We’ve got to get broadband out there. USDA is committed to getting it done,” said Jonathan Adelstein, administrator of USDA’s Rural Utilities Service, which will award $2.5 billion. Adelstein spoke at the national meeting of state utility regulatory commissioners.
Illinois has committed up to 10 percent state matching funds for 16 broadband projects should they be selected in the first round, according to Ryan Croke, the governor’s deputy chief of staff. State and university grant-writing experts also helped applicants with proposal writing at no charge. Similar state support will be offered for the next round of broadband project funding, Croke told the Illinois Broadband Deployment Council. Lawrence Strickling, assistant secretary for communications and information with the Commerce Department, described the overall criteria used to select proposals. The government wants “to get the most bang for the buck,” is interested in sustainable projects that will still exist in five years, and seeks proposals that are cost effective, offer high-speed technology, and don’t duplicate existing services, said Strickling. He also is director of the Commerce Department’s National Telecommunications and Information Administration (NTIA). NTIA will award
Jonathan Adelstein, left, administrator of USDA’s Rural Utilities Service, gave an update on federal stimulus funding for broadband last week in Chicago. Joining Adelstein on the panel were: Anne Neville, national broadband mapping program director with the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA), and Lawrence Strickling, assistant secretary for communications and information and NTIA director. (Photo by Kay Shipman)
$4.7 billion for broadband. Recently, NTIA announced $28 million for 15 projects to map and plan broadband services. Anne Neville, NTIA director of broadband mapping, said another round of mapping projects will be announced soon. However, simply offering
Illinois moving on broadband initiatives Illinois broadband proponents are moving forward with projects while others await word of possible federal stimulus dollars, members of the Illinois Broadband Deployment Council learned last week. Council members received an update on pending federal decisions directly from USDA and Department of Commerce officials who will help select projects. Most of the $7.5 billion — 88 percent — will be awarded to build broadband infrastructure. “We are totally committed to seeing (broadband) projects in every part of the state succeed,” said Ryan Croke, the governor’s deputy chief of staff, who chaired the council meeting. A new partner in the state’s broadband development is the Partnership for a Connected Illinois, also known as Connect Illinois, a non-profit organization. The Illinois Department of Commerce and Economic Opportunity (DCEO) has contracted with Connect Illinois to develop a map of the state’s broadband ability and to help qualified Illinois applicants apply for federal stimulus funding. Rex Duncan of Connect Illinois reported
the work has started on the broadband map, and the first generation of the map will come out in December. Duncan said he wants map information available for Illinois proposals for the second round of federal funding applications. To date, Connect Illinois identified 350 possible Internet service providers in the state and is seeking information from them. Of that total, 63 no longer are in business, Duncan noted. A state project for electronic prescriptions and electronic health records also is progressing. Illinois is expecting to receive $18.8 million in federal funds for the project, according to officials with the state Department of Healthcare and Family Services. Starting in 2011, health care providers with high numbers of Medicare and Medicaid patients will receive incentives to use electronic records. Illinois Rural HealthNet, a consortium of 12 universities and health care providers, hopes to start construction on its fiber optic network next year, according to state officials. The network will link 85 locations from Chicago to Carbondale. — Kay Shipman
Illinois researchers to study wind turbine issues A research consortium led by the Illinois Institute of Technology (IIT) recently was selected to receive up to $8 million in federal stimulus money for wind turbine research. The Chicago-based consortium was one of three university-led wind energy research groups picked by the U.S. Department of Energy.
The IIT consortium includes partners from private industry, state and local governments, and other universities. The research effort will focus on wind technology, grid system integration, and workforce challenges. IIT has a wind energy turbine in Marseilles near an existing wind
farm that will provide scientists an opportunity to study wind farm interaction and wind energy efficiencies. IIT also will develop and offer wind energy courses that will address the technical, operational, social, and environmental aspects of wind energy in consultation with industry.
broadband services isn’t enough; projects also must help people learn how to use the Internet, according to Strickling. “The key for a grant (award)
is, can we spend funding and make an impact on adoption (of Internet use)? If we can’t measure that (increased use), we’re not going to fund it,” he said.
FarmWeek Page 6 Monday, November 23, 2009
Final report o
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Typical November weather last week, with cold, gray, rainy weather Wednesday and Thursday. We had three good harvest days to start the week and started picking again Thursday afternoon. The corn hasn’t dried down very much, but harvest continues anyway. The LP shortage has added one more problem to this difficult harvest. We have been lucky to only have waited for LP, two different days. Depending on the weather this winter, there may still be harvesting going on when we start our Cropwatcher reports next spring. Stay safe. Leroy Getz, Savanna, Carroll County: A very different year for Cropwatcher reporting. The most expensive crop ever planted and still more expense to harvest and dry. Beans are all harvested with average yields. Corn has a long, slow road to the finish line. Some of us who are done have reported yields 10 to 20 percent above anything we have ever had. Low milk prices add to the losses for the year. The year 2009 was too wet, too cool, too late. Ron Frieders, Waterman, DeKalb County: The latest harvest delay is a shortage of LP to dry this year’s high-moisture corn. For more than a week, there have been little to no deliveries of dryer gas. We filled a bin with high-moisture corn just to keep rolling. Some varieties have come down in moisture to the low to mid-20s, but there is still lots of corn wetter than that. Rain also delayed us a day and a half last week. To sum up this year, yields are down, test weight is light, and moisture is high. Please stay safe. Larry Hummel, Dixon, Lee County: We missed the big rains that hit Central Illinois but also had to park the combine for a couple of days while light showers and mist stuck around. Thanksgiving is just around the corner with very few farmers finished with harvest. Here in Lee County, we have plenty of things to be thankful for: a safe harvest, bountiful yields, and corn moisture finally under 30 percent. Joe Zumwalt, Warsaw, Hancock County: Four and a half days of rain brought from 2 to 5 inches of rain to Western Illinois and that certainly brought any harvest progress to a complete halt. Nearly 90 percent of the soybeans and 60 percent of the corn have been harvested. Yields have been quite good for the early-planted crops, but yields drop off on the later-planted fields. Elevators have been keeping their doors open and this round of rain let them catch up with all of the wet corn. Very little tillage has been done and very little fertilizer has been applied. Now we can just hope for a perfect March. What a year it continues to be. With any luck at all, we should be finishing around the time you are reading this. Good luck to everyone with crop left and thanks for reading another year. Ken Reinhardt, Seaton, Mercer County: I hoped to resume harvest Friday after a wet week. It’s been a tough year start to finish with rain delays. Over half the corn is left to harvest here. Moisture is still high and test weights are low. There are propane and natural gas supply concerns. It looks like harvest will be drug into the next year here. Jacob Streitmatter, Princeville, Peoria County: A wet week again. It is reminding me of spring all over again. Work a day and rest and worry while watching it rain for a week. Hopefully, we will be able to get rolling strong during the weekend. There is a lot of corn yet standing and a dry field is not in existence. I do not know what the corn moisture is, but I bet it did not dry any in the rain the past week. Until next time, I hope the harvest has progressed.
Ron Moore, Roseville, Warren County: We received 1 inch of rain last week. Some areas to the south of here got up to 2.5 inches. There are only a few fields of soybeans left in this area to harvest, but a lot of corn yet to harvest. We started harvesting corn again on Thursday and the conditions were very muddy. We can get through the worst areas with the combine, but I am not taking the grain cart through the worst areas of the field. The moisture has not dropped below 20 percent on what we have left to harvest. This will be the most expensive crop I have ever harvested. Yields are still good and the corn is standing very well despite the late harvest. Mark Kerber, Chatsworth, Livingston County: Rain all last week limited fieldwork, so many of us farmers hunted deer this past weekend. I am calling this report in from my tree stand. Hopefully, the next rain event will miss us and we can continue harvest. Beans are above $10 again. Ron Haase, Gilman, Iroquois County: The only harvesting done since my last report was on Nov. 13 and 14. We received 1.3 to 1.4 of an inch of rain during the week. We planned to return to harvesting Friday. My neighbor just entered the field with his combine as I write this report. We have 67 percent of our corn yet to go. How long will that take? It could be January before we get done the way things are going. As for tillage, we are not too far behind the combine. We have 25 percent done. We are not sure how much more opportunity we will have to do any tillage. In talking with another farmer, we were discussing the fact that with the high moisture and the low test weight corn we are not getting as many salable bushels with each load as we normally do. So in addition to the great increase in drying charges, we also have more expense in hauling the corn crop, too. The local closing prices for Nov. 19 were $3.63 for nearby corn, $3.82 for January corn, $3.97 for fall 2010 corn, $10.15 for nearby soybeans, and $9.80 for fall 2010 soybeans. To summarize the year, it was difficult planting the crop due to the weather and now it has become more difficult to remove the crop due to the weather. I guess I just need to make sure I get the crop out before I start planting next April. Brian Schaumburg, Chenoa, McLean County: Another 2 inches of rain stopped all work last week. Half the corn is harvested for the area. Elevators will take corn only a few hours a day. Tillage plans and anhydrous applications are being abandoned. Despite all that has happened this season, give thanks for our blessings. Corn, $3.70; January, $3.85; fall 2010, $3.98; soybeans, $10.14; January, $10.19; fall 2010, $9.81; wheat, $5.06. Steve Ayers, Champaign, Champaign County: Another 3 inches of rain fell mainly on the grain standing on the plain! Another “Mary Poppins” week with my umbrella up nearly every day. No fieldwork for another week with our crop reporting district at 47 percent corn harvested and 98 percent soybeans harvested. The only good news is the grain handlers will be caught up with drying and ready to go whenever the weather cooperates. Turkey Day looks sunny with a high of 45 degrees. Enjoy Thanksgiving! Wilfred Dittmer, Quincy, Adams County: Hello again from our little corner of the state where the temperature Friday morning stood at 34 degrees with some fog. But hurray! No rain for a whole day. We definitely need to dry out again after another 2.7 inches of rain fell since Sunday (Nov 15). I think all machines were parked for the week and an end to this year’s harvest has been pushed back yet another week or two, at least. I think corn harvest probably still is only about 40 percent complete and soybeans probably around 90 percent, so machines will be running into the December calendar. Still time to be extra careful and we look forward to visiting with you all again next year. Merry Christmas and Happy New Year to all.
Harry Schirding, Petersburg, Menard County: Rainfall last week, 3.88 inches. Total for November, 3.99 inches. Normal for November, 2.87 inches. Fields had just begun to support harvesting equipment without leaving ruts before the rains returned. Corn harvest is about 60 percent complete with little progress made in the past week. Stalk quality and standability remain good, but time will continue to work against us. Yields have been above average, except for the areas that were adversely affected by the excess rain during the growing season. Diplodia damage has been a problem in some fields and with certain hybrids. Well more than 90 percent of the soybeans have been harvested. Areas that flooded again last week may not ever get harvested. Producers were able to get some anhydrous and broadcast fertilizer applied over the past several weeks. Herbicide applications mostly will have to be applied next spring. Many fields are rutted from harvest so getting ready for planting next spring will be a challenge. Corn nearby, $3.65, up 4 cents; soybeans nearby, $10.16, up 53 cents; January corn, $3.75, up 11 cents; January soybeans, $10.20, up 47 cents. Tom Ritter, Blue Mound, Macon County: Rains a week ago Sunday (Nov. 15) set in at 8 a.m. and there has been no fieldwork done since. A complete washout with more than 5 inches of rain fell in the Decatur and Macon County area. Harvest, tillage, everything has come to a halt. The ground is as saturated as we have seen it at any point during this year, and it has been saturated numerous times. Soybean harvest, however, is fairly well completed with more than 90 percent in the bin or the elevator. Corn is only 60 percent harvested at this point. Stalks are getting weaker and definitely did not need anymore wind. Overall, farmers are just trying to be patient. There will be quite a bit of corn picked in December, if not later. Todd Easton, Charleston, Coles County: Well, we have reached the end of the Cropwatcher reporting year. With the exception of a few lucky producers, harvest is not finished for most of us and at this point it is uncertain when we will get a chance to complete the job. What an interesting year it has been. When the reports started in May, very little corn had been planted and it stayed that way until late in the month. For the months following, planting during abnormally wet and cool conditions persisted and weather made for the latest and wettest harvest many of us have ever seen. In spite of this, the corn yields turned out pretty respectable in many fields and we may have something left after the bills and drying charges are paid. Preparations for next year’s crop, such as tillage and fertilizer applications are roughly only a fourth completed, putting us behind the eightball already for next year’s crop. But I remain confident that we will find a window to complete these jobs and kick off a good crop year in 2010. Until next year, best wishes to everyone and hopefully, we can enjoy the later holidays at home instead of in the field. Jimmy Ayers, Rochester, Sangamon County: Sunday (Nov. 15) through Thursday we received 3.5 inches of rain at our place. The area received anywhere from 2.5 to 4.25 inches. The rivers have overflowed their banks again, but not quite as bad as they were a week and half ago or so. We are down to 13 percent of our beans left and most of those are in the river bottom. There are a few farmers in the area done with corn. I talked to one who has been done for a week and a half. We still have a considerable amount of acreage left. A lot of people are 40, 50, 60 percent done. Moisture is still holding in the 20s. Heard of some corn that came in under 16 last Saturday (Nov. 14). It was a wet week with not much activity whatsoever. Very little anhydrous has been put on. We have numerous ruts to deal with for next year’s crop.
FarmWeek Page 7 Monday, November 23, 2009
of the season
CROPWATCHERS
Doug Uphoff, Shelbyville, Shelby County: Fully saturated. That is the weather and soil conditions here in Central Illinois. We had 4 inches of rain last week. Seventy percent of the corn and I would say 100 percent of the beans are out up in our area, but I don’t know about the southern part of the county. Corn moisture levels were down to 16-17 percent when we quit. It’s going to be awhile before we are back in. A neighbor bought a set of tracks for his combine, so he will be in the field before most of the rest of us. There won’t be any activity in the fields for at least a week. Before the rain, there was anhydrous and fall fertilization and dry fertilizer being applied and some chiseled plowing. Right now that is all on hold. We have water standing everywhere. Have a safe week and a happy Thanksgiving. David Schaal, St. Peter, Fayette County: We had 0.4 of an inch of rain on Monday night (Nov. 16). Drizzling light rain on Tuesday, Wednesday, and Thursday with fog here on Friday morning. For the most part, the soybean harvest is complete and several producers are completely done with the 2009 harvest. Most elevators have been able to stay open for the corn harvest, but they have done some things like putting wet corn where they have never put wet corn before and there has been a lot of shuffling grain around to stay open. On the other hand, corn moisture in the immediate area is running in the upper teens to low 20s. Hope to finish corn during the weekend. Not a lot of wheat has been sowed. Have a safe and happy holiday. Dan Meinhart, Montrose, Jasper County: A wet, rainy, and cool week. It rained almost every day. Our gauge showed 1.75 inches. Some received more; others less. No harvest was done except on Monday (Nov. 16). Very few bean fields are left standing. There is quite a bit of corn in the field yet. The weather looks better for the first part of this week.
Ted Kuebrich, Jerseyville, Jersey County: We received 4.7 inches of rain last week, so no harvesting. There is water standing in just about all the fields as you drive down the road. The Illinois River is 5 feet above flood stage and that means the water is out on the crops in the low lands. The Mississippi River in southern Calhoun County at Brussels also is out in the low lands and in the beans. Prices at Jersey County Grain, Hardin: November corn, $3.85; January corn, $3.89; fall corn for 2010, $4.05; fall beans, $10.29; January beans, $10.42; fall beans for 2010, $9.83. Rick Corners, Centralia, Jefferson County: This past week was kind of nasty, but the previous two weeks were just what the HMO ordered. After it rained almost every day in October, this was unbelievable. There are still a few beans and quite a few cornfields to be mowed down, but far fewer than we thought there would be a month ago. I think everyone was pleased with their corn yields, but the beans sure were a disappointment. Took a day’s drive yesterday through areas that normally sow a lot of wheat, and you could count the number of fields we saw on one hand. Kevin Raber, Browns, Wabash County: We had 1 inch of rain this past week. This stopped any field activities. There are a few fields left to be harvested, but not many. This will be a season that will be hard to forget. But as always, the Lord has blessed us with a safe and bountiful harvest. For everyone that has crops left in the field, just remember to count your blessings and stay safe.
Reports received Friday morning.
Bob Biehl, Belleville, St. Clair County: After 15 straight days of harvest, things came to a halt last Sunday night (Nov. 15). We received 3 inches of rain — a real soaker. Bean harvest is virtually complete in the area. We have about 70 acres of wheat stubble beans, but they are in five fields. Corn harvest is a different story. Some folks are done because they did not plant any, but most have a significant acreage yet to go. Moisture I have heard generally falls at 26 percent or less, unless the corn froze before it was black layered. Hopefully, the weather will cooperate over the next two to three weeks so we do get done before Christmas. Many of the late fall activities will take place on frozen or snowy ground or just wait until next spring, which will create a backlog. The bean market has been real supportive, however. January beans are bidding at $10.61 and corn at $4.12. Dean Shields, Murphysboro, Jackson County: We had a couple of days we were able to get back in the field and do some harvesting and then along come 1.5 inches of rain and that put a stop to everything. By the Mississippi River being up high and the locks closed, we have low ground flooded again. A lot of that flooded ground has still not been harvested, so water is over the soybeans for the second time this fall. A lot of the farmers are getting close to being done, but not quite there. Most agree that the yields have been pretty decent. Nothing super, but good yields this year on both corn and soybeans, so everybody is happy about that. The farmers that have stuff left are all looking around and trying to see what their options are. A lot of them are trading combine tires for something different that they can get through the mud. We are creating a lot of deep ruts, and everybody is wondering how we are going to get those filled back in. The biggest thing on everybody’s mind is how to finish up and get it in the bin. We will keep at it and we will see what next week brings.
Rains bring widespread harvest delays to Illinois BY DANIEL GRANT FarmWeek
Major harvest delays returned last week after farmers the first two weeks of this month enjoyed their best harvest window of the season. Harvest in Illinois as of the first of last week was 52 percent complete for corn (43 percent behind the five-year average) while most of the soybean crop (90 percent) was in the bin, the National Agricultural Statistics Service state office reported.
Meanwhile, very little wheat was seeded last week as planting progress increased by just 14 percent (from 63 to 77 percent complete) compared to the average of 98 percent. “Nothing much happened (last) week except for rain,” said Jim Drew, manager of the Logan County Farm Bureau in Lincoln where there were reports of flash floods. “It’s going to be a few days before farmers can get back in the fields.”
But even if farmers in his area get back in the fields this week, corn harvest likely will drag, according to Drew. There were more reports last week of early elevator closings due to limited dryer capacity and spot shortages of propane. “It’s just going to be a slow harvest,” Drew said. “The corn is so wet most elevators don’t have the capacity to dry it down that quickly.” Heavy rains that saturated much of the state last week,
with reports of as much as 3 to 4-plus inches, were the result of a front that parked over the state, according to Amy Jankowski, meteorologist with the National Weather Service (NWS). “The last few days were wet, but compared to October, it’s been pretty normal so far this month,” Jankowski said on Friday. Farmers should get some opportunities for fieldwork this week, although they may have
to dodge a few isolated showers. As of Friday, the NWS predicted there are chances of light showers today (Monday) into Tuesday with another possibility of light rain Wednesday night into Thanksgiving morning. “It doesn’t look like it will be too much,” said Jankowski, who expects a cold front to arrive in Illinois early this week. “Conditions (this week) should dry out, but it will be kind of chilly.”
HELPING A FALLEN COMRADE
Fortunately, it happens every year. Unfortunately, it has to. Every year when a farmer falls ill or dies, friends and neighbors come forward to harvest his crops. That’s what 53 people using nine combines, nine tractors and grain carts, and 23 trucks, two of which are shown here, did recently when they harvested the crops of Terry Steinhour, who died Oct. 7 from injuries sustained in a tractor rollover accident. Steinhour served the Menard County Farm Bureau as its president from 1992-1997, and at the time of his death was serving his third “stint” on the board. Bill and Judy Graff of Middletown coordinated the harvest effort, which included farmers from Menard, Logan, Mason, and Sangamon counties. (Photo by Dee Dee Gellerman, manager of Menard County Farm Bureau)
FarmWeek Page 8 Monday, November 23, 2009
WEATHER
Weather outlook: Wet pattern may continue into 2010 BY DANIEL GRANT FarmWeek
The weather in coming months could continue to challenge farmers in North and South America. Bryce Anderson and Mike Palmerino, DTN ag meteorologists, last week provided a winter weather outlook during a DTN webinar. In North America, the wet weather pattern may continue to hover over much of the Corn Belt through this winter and into next spring, the meteorologists predicted. “The vast majority of the Corn Belt (with the possible exception of the northwest portion) could remain wet with this pattern right on through winter,” Palmerino said. Anderson agreed the wet pattern could continue in Illinois and surrounding states. “This could be the third wet
winter in a row in the Corn Belt,” he said. “It could mean problems for fieldwork next spring.” In South America, where farmers currently are planting soybeans, excessive moisture could lead to planting delays or force some farmers to replant some of their crops. The greatest potential for increased rainfall exists in southern Brazil and eastern Argentina, according to Palmerino. Elsewhere, dryness could continue to be a challenge in western Argentina. Farmers in large portions of Argentina last year endured one of the worst droughts in the past 50 years and crop production subsequently declined, Palmerino said. Argentina “appears to be the major swing area in South America (this upcoming sea-
son) in terms of production potential going either way depending on how the weather pattern shapes up in the Southern Hemisphere,” Palmerino said. One phenomenon that could be a major influence on the weather in coming months is El Nino.
El Nino, a warming of the water in the Pacific Ocean, in the past month strengthened in status from weak (with water at 1 to 2 degrees above normal) to a moderate as water as of last week was as much as 4 degrees above normal. In the U.S., a strong El
Nino could lead to moderate temperatures this winter while a weak El Nino suggests it could be a “rather chilly” winter, Palmerino said. A strong El Nino also would increase the chances of more precipitation in coming months for crops in South America.
Farmers receive tips for dealing with wet corn Farmers have a lot to consider when it comes to handling high-moisture corn. If the wet crop is not handled properly, it could spoil in the bin and/or it could sicken livestock, according to a number of University of Illinois Extension specialists who last week hosted a webinar to discuss strategies for dealing with wet corn. “You just can’t dry it (corn) down fast enough” this season, said Mike Hutjens, U of I extension dairy specialist. “We’re hearing of big discounts for mold,” long lines at elevators, and early closing times at grain storage facilities. “And certainly this rain (last week) didn’t help at this stage of the game.” Producers who store high-moisture corn should shoot for a range of 25 to 30 percent dry matter for shelled corn and 30 to 34 percent dry matter for ear corn, Hutjens said. The moisture content for corn going into storage for a year should be below 15 percent, according to Ted Funk, U of I Extension specialist in bioenvironmental engineering. Corn stored over the winter should be dried to at least 18 percent and, if it’s not fed to livestock, dried down to 15 percent in the spring.
“Storage at 20 percent (moisture) or above is really risky,” said Funk, who noted that 20 percent moisture corn at 50 degrees should be stored no longer than two months. “And I don’t recommend mixing wet and dry corn (for storage). The wet corn will spoil the whole load,” he said. Meanwhile, high moisture isn’t the only issue associated with wet corn. A large number of fields with ear rot, ranging from diplodia and fusarium to gibberella, have been reported, according to Carl Bradley, U of I plant pathologist. And some of the fungal growth, such as fusarium and gibberella ear rots, produce mycotoxins that can sicken livestock. Farmers can feed small portions of moldy corn to livestock, but they first should mix it with better-quality corn, according to Hans Stein, U of I associate professor of swine nutrition. Farmers who mix moldy corn into feed should monitor animals closely for any signs of sickness. Producers who want more information about wet corn strategies or who want to sign up for a Dec. 3 webinar on the subject may do so online at {http://events.idtg.uiuc.edu/wet_corn}. — Daniel Grant
Rain wreaks havoc on pumpkin production Pumpkin pie lovers should enjoy the tasty dessert while they can this holiday season. The cool, wet growing season followed by poor harvest weather this fall apparently took a big slice out of pumpkin production this season. John Ackerman, who grows field and ornamental pumpkins near Morton — where 80 to 90 percent of all commercial pumpkins are canned at the Nestle-owned Libby’s plant — said his entire crop of field pumpkins likely will not be harvested this season and instead will be plowed back
into the soil for fertility purposes. “My pumpkins have not been touched and there is a pretty good chance they won’t be harvested this year,” Ackerman told FarmWeek. “It’s mostly due to the inability to physically get them out of the field.” Ackerman this year grew commercial pumpkins on about 33 acres. He expected an average yield of 22 to 23 tons per acre, so the total loss could be more than 700 tons of pumpkins. A spokesperson for Nestle estimated canned pumpkin production could shrink by a
third this year compared to what was estimated prior to harvest. “There should be plenty of supply to get through the holidays, but whether there’s a shortage after that remains to be seen,” Ackerman said. Ackerman, who will keep the gift shop on his farm open through Christmas, said ornamental production on his farm actually was “very good” this year. But he said he knows of fellow producers who lost half of their ornamental pumpkin crops and one farmer reportedly lost 90 percent of his crop. — Daniel Grant
U of I receives grant to study carbon dioxide injection The U.S. Environmental Protection Agency (EPA) awarded the University of Illinois an $897,225 grant for a three-year research project on the environmental impacts of injecting carbon dioxide underground. Researchers will study injection of carbon dioxide from a source such as a coal-fired electricity generating power plant into Illinois’ deep underground water reservoirs for long-term
storage. They will use fieldwork and computer models to determine the effects of carbon dioxide sequestration on aquifers. They also will explore whether the sequestration could cause changes in reservoir pressure and possibly result in salt water migrating from deeper ground water and contaminating fresh water near the surface. Although underground
injection of carbon dioxide is a long-standing practice for oil and gas recovery, its use specifically for geologic sequestration involves different issues and potentially larger volumes of carbon dioxide than in the past. EPA is working with the Department of Energy on carbon sequestration research and development and also is coordinating efforts to evaluate potential impacts on health, safety, and the environment.
FarmWeek Page 9 Monday, November 23, 2009
CLIMATE
Economy could slow post-Copenhagen climate momentum BY MARTIN ROSS FarmWeek
The U.S. and China last week announced a deal to promote “clean energy” — and, ideally, greenhouse emissions reductions — across the coaldependent Chinese subcontinent. But as December’s United Nations Climate Conference in Copenhagen approaches, observers question China’s resolve in following the U.S.’ lead and the Third World’s willingness to follow China into a brave and potentially costly new world. Congressional cap-andtrade debate, seemingly stalled until early 2010, effectively is “putting the (U.S.) agriculture community on hold,” said Virginia Tech professor emeritus of ag finance David Kohl. Beyond prospects for higher input/energy costs that have held up operational changes and investments, capand-trade critics fear unilateral
climate regulation could put U.S. agriculture at a “strategic disadvantage,” Kohl told FarmWeek during a Texas ag bankers conference last week. “If we have cap and trade here in the United States, will China (and) some of the other major producing areas conform to some of the specifics outlined in cap and trade?” Kohl asked. “One of the things that will dictate whether we see action or we don’t see action is the health of the world economy. “The priority for (climate) actions is probably more in mid-2010, late 2010. If we see the world economy make a rapid rebound, then some of these various agendas are
Auction Calendar 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. Fri., Nov. 27. 9:30 a.m. Consignment Auction. MANITO, IL. Palmer Auction Service. Sat., Nov. 28. 10 a.m. 79 Ac. Wayne Co. Estate of Ken Johnson, ORCHARDVILLE, IL. Daggs Auction Co. 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. Thurs., Dec. 3. 11 a.m. 40 Ac. Hancock Co. Deborah Eccles and Dorinda Winget, BLANDINSVILLE, IL. Van Adkisson Auction Service, LLC. Thurs., Dec. 3. 7 p.m. Quality Grain Farm Auction. Darlene Jayroe and Reba Henson, FLORA, IL. Carson Auction Realty & Appraisal Co. Thurs., Dec. 3. 249.9 Ac. Marshall Co. Ralph French Trust. Soy Capital Ag Services. Fri., Dec. 4. 1 p.m. 150 Ac. Stephenson Co. Stammich Family Let. Partnership, ORANGEVILLE, IL. Barker Auction & Appraisals. Fri., Dec. 4. 10:30 a.m. 122.343 Ac. LaSalle Co. Phyllis Bevington, SENECA, IL. Marty McConville and Dick McConville, Auctioneers. Fri., Dec. 4. 10:30 a.m. 163.42 Ac. McDonough Co. M. Luan Crawford Estate, BUSHNELL, IL. Van Adkisson Auction Service, LLC. Fri., Dec. 4. 10 a.m. 83.54 Acres Warren Co. Galusha Family Farm, BUSHNELL, IL. Van Adkisson Auction Service, LLC. Sat., Dec. 5. 10 a.m. Farm machinery, livestock eq., hay. Marvin J. Eberle Estate, BRIMFIELD, IL. Col. Gail Cowser and Col. John H. Bliss, Auctioneers. Sat., Dec. 5. 10 a.m. 160 Ac. Warren Co. Florence P. Marshall Estate, ROSEVILLE, IL. Van Adkisson Auction Service, LLC. Sat., Dec. 5. 9 a.m. Consignment Auction. LAWRENCEVILLE, IL. Max Groff, Auctioneer. Tues., Dec. 8. 10 a.m. 80 Ac. Edgar Co. First Bank and Trust-Land Trust #893-031, CHRISMAN, IL. Moss Auction Team, LLC. Tues., Dec. 8. 10 a.m. 152.70 Ac. Warren Co. Ruth M. Russell Estate, MONMOUTH, IL. Van Adkisson Auction Service, LLC.
going to be pushed forward dramatically. “But if we should see another economic catastrophe, those things will be postponed. World economic health and U.S. economic health will dictate that.” The developing nations have exerted a key influence on currently stalled World Trade Organization talks, and Kohl believes the concerns of the world’s poorer regions also will shape policy the direction taken in Copenhagen. Kohl reported the U.S., Europe, and other “rich nations” have begun a major pushback against charges they are exclusively or even primarily “the bad
guys on the block.” Larger emerging nations such as Brazil, Russia, India, and China — referred to collectively as “the BRIC” — thus “are going to have to play the game, as well,” he said. U.S. negotiators in Copenhagen will seek major emissions reductions aimed at reaching “a level that is safe for humanity,” among developing and developed nations, reported Illinois Farm Bureau National Legislative Director Adam Nielsen, who attended a recent U.S. State Department Office of Climate briefing in Washington. The department’s climate envoy accompanied Secretary of State Hillary Clinton on her
recent trip to China. Under a new agreement, President Obama and Chinese President Hu Jintao announced plans for joint clean energy technology research, a sweeping Chinese “clean vehicles” initiative, and coal carbon sequestration and gasification projects. But a Climate Office spokesman reported China’s major climate focus was on evaluating building energy efficiency, Nielsen noted. Given the U.S.’ dicey trade relationship with China, Nielsen is concerned America could end up at a competitive disadvantage if it cannot hold China and the rest of the developing world’s “feet to the fire.”
FarmWeek Page 10 Monday, November 23, 2009
MARKETS
Illinois gains first FSA-approved biomass facility BY KAY SHIPMAN FarmWeek
The Farm Service Agency (FSA) recently approved the state’s first biomass crop conversion facility, but farmers and other suppliers must apply for the new biomass crop assistance program (BCAP) and be approved before they can participate. Don King, Illinois FSA conservation chief, told FarmWeek the Archer Daniels Midland (ADM) cogeneration plant in Decatur is the only approved Illinois facility among 247 nationwide. BCAP will provide matching payments, up to $45 per ton, to farmers and other participants for eligible biomass
material delivered to FSAapproved biomass facilities. The biomass must be used for heat, power, biobased products, or biofuels. Farmers and other suppliers who deliver eligible biomass material to the ADM plant will be eligible for matching payments from FSA. However, King emphasized farmers and other suppliers must first apply for BCAP, be approved, and check to be sure matching funds have been allocated — before delivering eligible material to ADM or any other approved facility. An application must be filed in the local FSA office in the county where the material is grown. “OMB (the U.S. Office of
Management and Budget) has not yet approved funds for fiscal year 2010,” King explained. “Now we’re waiting on the process to get funds authorized so we can approve participant applications.” For the fiscal year that end-
ed Sept. 30, FSA allocated $25 million nationwide for BCAP. Fiscal year 2010 started Oct. 1. One other Illinois entity is completing the application to become an approved BCAP facility, and two others are exploring the program, according to King.
He recommended interested producers contact FSA or go online to {www.fsa.usda.gov} and click on Energy Programs. Producers who signup for electronic updates will receive information once it becomes available.
Cattle prices could firm up after holiday BY DANIEL GRANT FarmWeek
Cattle prices may begin to strengthen after Thanksgiving due in part to improved domestic demand for beef and increased exports. Dale Durchholz, AgriVisor market analyst, projected cattle prices could improve from the low- to mid-$80 range last
week on up to the high $80s by December. “Prices have gotten to a point where beef should move through the domestic market a little better,” Durchholz said. “And red meat exports have been improving.” Overall, U.S. beef exports from January through September were down 12 percent in
volume compared to last year, according to the U.S. Meat Export Federation. But beef exports to Japan during that same time increased by 22 percent in volume compared to last year, beef exports to Hong Kong were up 110 percent, and exports to Vietnam were up 23 percent compared to last year. “The weak dollar has helped that out,” Durchholz said of a recent increase in U.S. red meat exports. Cattle prices also could be
FarmWeekNow.com Visit FarmWeekNow.com to view the full details of the cattle-on-feed report.
supported by the fact that the average slaughter weight in recent months declined from 870 pounds to 847 pounds. Durchholz believes the dip in slaughter weights is due in part to inclement fall weather that reduced gains and a price rally in October that prompted more cattle sales. Overall, the number of cattle on feed (11.18 million) reported by USDA as of Nov. 1 was a little higher than expected due to heavier placements (2.47 million). Both estimates were up 1 percent compared to last year. Meanwhile, marketings of fed cattle during October totaled 1.76 million head, which was 3 percent below a year ago. “Seasonally, the (cattle) market ought to stay firm into spring,” the analyst added. “The big question is how will the economic picture unfold over the long haul.”
FarmWeek Page 11 Monday, November 23, 2009
EMERGING ISSUES
Animal care initiative in Ohio sets precedent BY DANIEL GRANT FarmWeek
The passage of “Issue 2” earlier this month in Ohio, which approved the formation of the Livestock Care Standards Board, set a precedent for farmers and ag groups in Ohio and possibly across the nation. Ohio voters overwhelming approved the measure — by a vote of 64 percent to 36 percent — which will allow farmers, veterinarians, and consumers to play a role in establishing standards for the care, treatment, and welfare of livestock. Previous changes to animal care standards in other states, such as Arizona and California, were implemented through voter referendums. “It’s about validating our practices in livestock production,” said Jack Fisher, executive director of the Ohio Farm Bureau Federation, during a recent RFD radio interview. “We need to elevate this whole concept of animal care.” The 13-member board will include Ohio’s ag director, family farmers, veterinarians, a
representative from a local humane society, and consumers. Creation of the board was intended in part to block liberal animal care reforms in Ohio advocated by the Humane Society of the United States. “We tried to put together a
‘We tr ied to put together a plan that can be reviewed and looked at across the country.’ — Jack Fisher Ohio Farm Bureau Federation
plan that can be reviewed and looked at across the country,” Fisher said. “I believe the challenges being brought forth by the animal rights’ folks are an American ag challenge,” he continued. “We need to build a critical mass” to establish guidelines for animal care that are workable for farmers
and consumers. Illinois Farm Bureau supported the effort in Ohio to create the board. “We looked at this as an opportunity to influence the animal care issue in Ohio in a positive way,” said Tamara White, IFB senior director of commodities. Proponents of the Ohio Livestock Care Board “took a common sense approach that may work in other states,” she said. Jim Fraley, IFB livestock program director, said he is eager to learn from the successes of the board. But the effort may not be a blueprint for future action in Illinois. “We are not a ballot-initiative state,” Fraley said. “So far, we’ve been able to meet legislative challenges (from animal activists) head on.” However, it is imperative for ag supporters to unite and take a proactive approach, such as the Ohio effort, in order to fend off future attacks on production practices, according to Fraley and White. “The key is to stay together and present a united front,” Fraley added.
GREEN TOUR FOR SENATOR’S STAFF
Cook County Farm Bureau member Dan Biernacki, left, discusses transplanting techniques used in his Tinley Park greenhouse during an agriculture tour for U.S. Sen. Roland Burris’ staff members. Looking on are Janet McCabe, Cook County Farm Bureau public policy team member; Grant Whiting, an intern with Burris; and Scott Kagawa, the senator’s outreach coordinator. (Photo by Bona Heinsohn, Cook County Farm Bureau public policy director)
Easter named interim chancellor-provost The University of Illinois’ Board of Trustees named current interim provost Robert Easter to also serve as interim chancellor. The trustees selected Easter to fill temporarily the top position for the Urbana-Champaign campus at their recent meeting. Easter, dean of the College of Agricultural, Consumer, and Environment Sciences (ACES), has served as interim provost since July. He replaced
former Chancellor Richard Herman, who resigned following an admissions scandal at the university. The university and the trustees also are searching for a new president to replace Joseph White, whose resignation takes effect Jan. 1. Former U of I President Stan Ikenberry will serve as interim president. Ikenberry and Easter were to take on many of the chancellor’s duties.
FarmWeek Page 12 Monday, November 23, 2009
EDUCATION
WIU librarian links food, farmers, GIS Map project posted online BY KAY SHIPMAN FarmWeek
A Western Illinois University (WIU) librarian is showing Americans they can thank farmers from many states for their Thanksgiving meal. Linda Zellmer, government information and data services
FarmWeekNow.com You can view the GIS-based production maps of your Thanksgiving Day meal at FarmWeekNow.com.
librarian at WIU, used U.S. Agriculture Census data and geographic information systems (GIS) to create maps
showing the states in which Thanksgiving foods are produced. Maps of individual foods and a poster showing all the maps are online at {http://faculty.wiu.edu/LRZellmer/thanksgiving.html}. Zellmer told Far mWeek she developed the food-map project to mark geog raphy awareness week (Nov. 16-20) and to interest students, especially young ones, in geography. “I was looking for data to map and to challenge little kids,” she said. Her sister, a Wisconsin teacher, told Zellmer it can be tough to capture students’ attention before their Thanksgiving break. Zellmer offered a couple of ideas to help students in elementar y, middle, and high
Clearinghouse for beginning farmers a collaboration between AFBF, Ag Library The American Farm Bureau Federation (AFBF) is partnering with USDA’s National Agricultural Library to create a national curriculum and training clearinghouse for beginning farmers. The information-sharing program will help those who have decided to pursue careers in agriculture. The clearinghouse is part of the Beginning Farmer and Rancher Development Program, a competitive grant initiative that is part of the farm bill. The clearinghouse will be supported by a five-year, $1.5 million grant from USDA. AFBF is providing in-kind support to the National Ag Library with outreach, publicity, educational seminars, and conferences during which project grants will be highlighted, according to AFBF President Bob Stallman. The clearinghouse will develop a website and databases to serve beginning farmers and ranchers with particular focus on those categorized as underserved. The clearinghouse also will provide education, training, outreach, and mentoring materials to new farmers and ranchers across the country. AFBF will help distribute the information.
school classes connect geography with Thanksgiving. These include determining the states that produce the most pumpkins, turkey, and other foods; and using weather, climate, and growing conditions to determine why some crops grow only in southern states and while others grow only in some northern states. The existing maps are her third edition. Zellmer said she uses online Census of Agriculture data and updates the maps with new census data. She has used data from the 1997, 2002, and 2007 censuses. Zellmer noted other entities on the WIU campus also use GIS and offer GIS services. For example, the Illinois Institute for Rural Affairs has developed the Illinois site selection tool to help companies find potential locations for businesses or industrial development.
A replica of the poster available online.
FS Seed Division renews Illinois IAITC commitment GROWMARK’s FS Seed Division last week presented a check for nearly $59,000 to IAA Foundation Chairman Philip Nelson for Illinois Ag in the Classroom (IAITC) programs. “Although agriculture is constantly advancing and continues to be an integral part of our lives, today’s youth are becoming less and less exposed to it,” said Steve Barwick, GROWMARK senior vice president of marketing and operations. “In the past, it was common to have some link to agriculture in every family, either directly
or indirectly. Kids today are becoming less conscious of the importance of agriculture and are not making the connection between how it is vital to their everyday lives.” IAITC strives to educate youngsters on the role agriculture plays in their lives. The FS Seed Division has made annual contributions to IAITC since 2003. Half of the donation goes toward direct grants administered by FS member cooperatives at the local level. This year’s contribution brings the six-year total to nearly $349,000.
Illinois Farm Bureau President Philip Nelson, right, chats with Steve Barwick, GROWMARK senior vice president of marketing and operations, about the FS Seed Division’s latest contribution for ag literacy programs. (Photo by Ken Kashian)
FarmWeek Page 13 Monday, November 23, 2009
FROM THE COUNTIES
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U R E AU — The township caucus meeting for nominating directors to serve on the county Farm Bureau board will be at 10 a.m. Friday, Dec. 11, at the Farm Bureau office. Contact the Farm Bureau office for townships which have vacancies, returning candidates, or if you would like to fill a position. E N RY — Steve Johnson, Iowa State University Extension farm and ag business management specialist, will be the speaker at a marketing seminar at 9:30 a.m. Tuesday at Happy Joe’s, Coal Valley. Cost is $15, which includes lunch and materials. The seminar is sponsored by Henry and Rock Island County Farm Bureaus, Gold Star FS, and Bank ORION. Call the Henry County Farm Bureau office at 309937-2411 or the Rock Island County Farm Bureau office at 309-736-7432 for reservations or more information. A S A L L E — The annual meeting will be at 7 p.m. Tuesday, Dec. 1, at Pitstick’s, Ottawa. Dinner will be served. Cost is $7.50. Call the Farm Bureau office at 815-4330371 for reservations or more information. IVINGSTON — Farm Bureau, Bank of Pontiac, and Pontiac First United Methodist Church will collect international phone cards to send to military personnel. Monetary contributions may be mailed to Phone Cards for Troops, Livingston County Farm Bureau, PO Box 410, Pontiac, Ill. 61764. Deadline to send contributions is Wednesday. Call the Farm Bureau office at 815-8421103 for more information. CLEAN — Farm Bureau and Chamber of Commerce Agribusiness Council will honor those in agricultural leadership on Feb. 12 at the Holiday Inn and Suites, Bloomington. A new award is the Emerging Leader in Agriculture for a young person who does not have production agriculture as his or her primary form of employment. Visit the McLean County Chamber website at {www.mcleancochamber.org} for more information. E O R I A — A free calendar featuring local photos and activities will be given to each person visiting the Farm Bureau. Additional calendars are $3. • Farm Bureau will sponsor a Stroke Detection Plus
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program Thursday, Dec. 10, at the Farm Bureau office. Four screenings are available for $80. Call 877-7328258 for an appointment or more information. • The citrus and nut order deadline is Monday (today). Florida Farm Bureau oranges, grapefruit, and tangelos are available in 20- and 40-pound boxes. A variety of Terri Lynn nut products are available in one-pound packages. Delivery will be Wednesday, Dec. 16, to the Farm Bureau office. Call the Farm Bureau office for more information. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county manager.
ADOPTED LAWMAKER TOUR
State Rep. Will Burns (D-Chicago), second from right, listens as Hamilton County Farm Bureau member and pork producer Brad Miller, left, talks about issues facing the pork industry and responsible animal care. Looking on are Hamilton County Farm Bureau President Kent Darnell, center, and Illinois Farm Bureau Director J.C. Pool. Burns, the county Farm Bureau’s adopted legislator, also toured a grain handling facility and spoke at the county Farm Bureau annual meeting. He plans to visit with the county Farm Bureau members attending the IFB annual meeting in Chicago. (Photo by Christina Nourie, IFB northeast legislative coordinator)
FarmWeek Page 14 Monday, November 23, 2009
PROFITABILITY
Re-energize yourself by looking to 2010 BY LANCE RUPPERT
Do you enjoy roller coasters? Do you find them fun and exciting, waiting in anticipation for the cars to reach the top of the steep slope? Or do you prefer the fast acceleration downward with your stomach in your throat? Lance Ruppert Or, are you like me — someone who never enjoyed those rides? Right now I don’t enjoy the
similar up and down ride the economy has been on. One year ago I wrote about the collapse of the world economy and the effect it had on the agriculture industry. It looked pretty bleak at that point. Well, a year has gone by and time has a way of changing things. Although we have a lot of factors to be cautious about, many indications show that the U.S. and world economies are solidifying. We have seen a recent rise in commodity prices with 2009 December corn hovering around $4 per bushel and soy-
beans around $10 per bushel. If we look out to September 2010 prices, we can see even more optimism in the grain markets. In the end, the world’s population will continue to grow and you, the American farmer, will play a vital role. I believe this is a huge opportunity. With fertilizer, seed, and crop protection prices stabilizing, the ability to better manage your business should be enhanced in 2010. Genuity SmartStax corn hybrids, Genuity RoundUp Ready 2 Yield soybeans, and crop protection products powered by Kixor
are the next wave in technologies growers can use to grow more bushels per acre and raise the bar in agriculture. This has been a historically tough year for agriculture, but farmers are optimistic by nature. Deep down, we believe that next spring our crops will be planted and up by mid-May, the rain will come in July at just the right time, and a bountiful harvest will be gathered in the fall. Re-energize yourself with the challenge of growing 10 percent more bushels in 2010. With better genetics, seed treatments, crop protection,
plant health, fertility, precision farming, and the knowledge to formulate a plan to find new synergies, the opportunity to grow more bushels on the same acre has never been so attainable. The tools and opportunities are out there to grow more, make more, and enjoy life more. Search them out, put them into action, and put some fun and excitement back into your farming business. Lance Ruppert is GROWMARK’s crop protection marketing manager. His e-mail address is lruppert@growmark.com.
Economist: Uptick in pork exports ‘encouraging’ BY DANIEL GRANT FarmWeek
A recent surge in pork exports is “encouraging,” according to Ron Plain, ag economist at the University of Missouri. But producers still have a long way to go before they return to profitability, the economist told FarmWeek. September “was the first positive month on exports since (last spring),” Plain said. “That is encouraging.” The U.S. in September exported more pork (339.5 million pounds) than any other month since April when H1N1 first made international
headlines, the U.S. Meat Export Federation (USMEF) reported. H1N1, which originally was mislabeled “swine flu,” last spring quickly turned a bullish hog market into a bearish one. The National Pork Producers Council estimated the Ron Plain amount of additional revenue the H1N1 fiasco will cost the pork industry this year could total as much as $1.2 billion.
BY MARTIN ROSS FarmWeek
Feeder pig prices reported to USDA*
Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $27.20-$38.46 $35.38 $40.00 $40.00 n/a n/a This Week Last Week 25,366 17,987 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $49.36 $51.92 $36.53 $38.42
Change -2.56 -1.89
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week 83.34 82.20
Prv. week 84.32 84.40
Change -0.98 -2.20
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 93.11 93.57 -0.46
Lamb prices Confirmed lamb and sheep sales This week 950 Last week 950 Last year 599 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $95-$100; 110-130 lbs., $92-$95. Good and Choice 1-2: 60-90 lbs., $112. Slaughter Ewes: Utility and Good 1-3: $32-$34. Cull and Utility 1-2: $32.
Export inspections (Million bushels)
Week ending Soybeans Wheat 11-12-09 59.8 15.0 11-05-09 64.0 17.8 Last year 42.5 18.4 Season total 347.5 393.4 Previous season total 274.9 570.3 USDA projected total 1325 875 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
pounds), USMEF reported. “We actually exported more pork in September than we did a year ago,” Plain said. “That’s good news.” However, U.S. pork exports from January through September still trail last year’s record pace by 11 percent in volume and 12 percent in value. Meanwhile, Plain predicted corn futures in coming months could move higher, which could increase feed costs, while meat demand could remain soft due to the recession. “The rest of the meat industry is in the same boat. They (livestock producers) are
all downsizing, so that will help a little bit,” Plain said. “But it’s tough to downsize meat production fast enough when you’re facing higher production costs and when we’re in a recession and demand is soft.” U.S. beef exports in September were down 25 percent in volume and 34 percent in value compared to the same time a year ago. An increase in beef exports this year to Japan, Taiwan, and Hong Kong have been offset by declines in shipments to Mexico, Canada, and Russia, according to USMEF.
IFB seeks extension of insurance period
M A R K E T FA C T S
Carcass Live
“I find it difficult to be optimistic,” said Plain, who projected losses will continue in the pork industry until next April or May. “There is a lot of red ink still in front of pork producers” due to high input costs and weakened demand for meat. Countries that recently increased pork purchases include Mexico (which bought 37 percent more pork in September compared to the same time last year), the value of U.S. exports to Japan increased 3 percent, and September pork exports to Canada set a new monthly volume record (38.9 million
Corn 21.9 27.8 30.4 347.6 335.8 2100
As Illinois growers press to complete harvest before a key Dec. 10 crop insurance deadline, Illinois Farm Bureau is pushing to extend the 2009 spring crop insurance period, and producers are urged to call their agent before the federal clock runs out. In a letter last week to USDA Risk Management Agency (RMA) Administrator William MurFarmWeekNow.com phy, IFB PresiTips on what to do on your dent Philip farm with the Dec. 10 dead- Nelson reiterline approaching are avail- ated that Illiable at FarmWeekNow.com. nois harvest progress in Illinois is “substantially behind normal” and roughly three weeks away from RMA’s End of Insurance Period (EOIP). Without a blanket extension of the EOIP, Nelson warned, “there could certainly be numerous cases of producers not filing the necessary claim forms in time because they were unaware they needed to.” “It now appears many regions of Illinois will have significant amounts of crops remaining in the field well after that date,” Nelson wrote. “Due to this, we would like to request an extension of the EOIP date on behalf of the Illinois Farm Bureau and the
73,000 farm families it represents. “We understand that with a pre-existing peril such as wet harvest conditions, producers can extend coverage by notifying their agent/adjustor and having a claim filed. We appreciate the delayed harvestwet conditions fact sheet RMA has published clarifying this point (available at {www.rma.usda.gov}). “However, it is our impression that the vast majority of farmers are unaware of this quickly approaching deadline.” Meanwhile, IFB risk management specialist Doug Yoder reminded harvestdelayed producers to submit any notice of loss with their agent prior to Dec. 10 if they have not done so and request additional time to harvest in order to protect coverage. Insurers may allow additional time to harvest once a claim is filed if a) a producer provides timely notice of loss to his agent and b) it can be determined that the delay was due to or harvest was not possible because of an insured cause of loss, or c) was not due to an uninsured cause of loss or because the producer simply did not have sufficient equipment or manpower to harvest covered crops. Revenue-based policies provide coverage for loss of quality (review crop provisions for specifics), reduced yields, and revenue losses (if chosen).
FarmWeek Page 15 Monday, November 23, 2009
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Marketing opportunities appear on the horizon While the strength grain markets have enjoyed the last couple of months has offered improved marketing opportunities for the crops you are harvesting, that same strength could be sowing the seeds of lower prices in the long term. Historically, harvest or early post-harvest rallies have been important marketing opportunities. Recent exceptions might have been in 2006 and 2007 when there was a broad, general trend toward higher prices in commodities. But, that trend culminated with the 2008 highs. Traditionally, strength at the beginning of a marketing year tends to undermine demand, causing ending stocks expectations to rise over time, undermining prices as the marketing year progresses. This year’s harvest issues and associated quality problems might deter
Basis charts
world interest in U.S. grains, further deteriorate demand, and weaken prices a little more. Fundamentally, the trade has a bearish attitude toward wheat and a mildly negative one for corn. If the South American crops end up as good as early forecasts, fundamentals in the oilseed complex will take on a more negative tilt as well. Current price strength is largely tied to inflationary fears and the related buying of grain futures by the investment community. If something changes that aspect of the markets, fundamentals could start to exert a more downward pull. The possibility of seeing early marketing year peaks fits with the timing of long-term price cycles in grain and other key commodity markets. The accompanying graphic indicates corn, soybeans, and crude oil have major lows due near the end of 2010. The threeyear cycle in the Continuous Commodity Index isn’t due until the end of 2011, but because the last two bottomed later than normal, the odds favor this one bottoming early. We’ve projected a bottom in mid-2011, but it could bottom a little sooner. The important thing to take away from the picture is the potential marketing opportunity being offered. It may be important not only to sell 2009 crops aggressively in the next one to three months, but 2010 crops as well. The trick is identifying when the major trend is turning down. Given that wheat has the most negative fundamentals of the three grains, it may offer the first clue that the trend could be turning down again. AgriVisor endorses crop insurance by
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2009 crop: Prices have shifted into a sideways-tohigher trend. Use rallies to make sales, even for harvest delivery. It may not pay to store corn commercially given the minimum upside potential and the cost of storage. If March futures rally to $4.35, boost sales to 50 percent. Check the Cash Strategist Hotline frequently for changes as we might increase sales even more. For farm-stored corn, the large futures carry makes hedge-to-arrive contracts for winter/spring delivery attractive. Because of quality issues, be careful storing corn beyond winter this year. 2010 crop: We are considering initiating sales if December 2010 futures move above $4.50. Fundamentals: Harvest was limited last week with another wet pattern stalling over the Corn Belt. The slow pace of harvest could boost harvest losses, reducing yields. Quality issues may be eroding demand potential.
Soybean Strategy 2009 crop: Soybean prices continue to push higher behind commodity buying from the investment community. Use a rally to $10.80 on January futures to boost sales to 50 percent. We may increase sales to 65 to 75 percent in the next one to two months. Check the Cash Strategist Hotline frequently as we could change recommendations at any time. 2010 crop: Plan to begin new-crop sales soon. Check the Cash Strategist Hotline occasionally for a recommendation. Fundamentals: With harvest now in its final stages, demand has become the key fundamental driver. Still, the 11 percent yet to be harvested is the equivalent of 360 million bushels, more than the 270 million projected ending stocks. That’s not to be ignored. The demand pace is torrid. A total of 198 million bushels have been inspected for export the last three weeks. According to the National Oilseed Processors,
155.2 million bushels were crushed in October, 14 million more than expected.
Wheat Strategy 2009 crop: Wheat surged to a five-month high on the influx of outside buying. Momentum has temporarily stalled, but we expect prices to push higher following a modest setback. However, strength could be shortlived. Use Chicago December futures prices above $5.50 for catch up sales. Use a rally to $5.75 on December to make a 25 percent sale, bringing your
total to 80 percent. 2010 crop: If Chicago July futures rally to $6.35, make an initial 25 percent sale. Fundamentals: Weekly export sales continue to be moderately disappointing, with only 362,400 metric tons (13.3 million bushels) reported last week. Still, the number was slightly encouraging considering the recent strength in U.S. prices. World buyers continue buying wheat from other sellers at the higher levels, too. But Asian buyers are starting to halt their purchasing.
FarmWeek Page 16 Monday, November 23, 2009
PERSPECTIVES Letter to the editor
Better late than never
Challenges biotech views of columnist
The 2009 season has been both different and difficult. Corn and soybean plantings were dramatically later than normal and, as may be easily seen driving around the state, harvesting is well behind normal. Remember the incessant rain this spring? Looking back to May 17, when more than 90 percent of the corn crop is normally planted, this year only 20 percent was planted. The weather delays farmers experienced during planting have continued and are now affecting harvest. On Nov. 9, 31 percent of Mike Meridith, in truck, and his son, Wes, talk as they wait to unload corn at the FS facility at McLean. Before the rains came, farmers were lined up outside the facility as early as 6 a.m. the corn in Illinois was harvested. Last year, by the end Some elevators had stopped accepting corn by mid-morning as they attempted to catch up of the first week of Novem- with drying a wet crop. (Photo by Ken Kashian) ber, 78 percent of the corn the adverse conditions. was out of the field. The five-year average is 92 • The research indicates farmers should not expect much furpercent harvested. ther drying of the corn crop after mid-November. WILLIAM To find a corn harvest as late as this year’s, you • Although not quantified, harvest delays appear to lead to BAILEY need to go back to 1967 and then back to 1946. increased damage from wildlife. By the end of the first week in November, 20 • Simply delaying harvest does not really affect grain quality, percent of the 1967 crop was harvested. The crop was not conso the price effect of delayed-harvested grain could be limited. sidered fully harvested until February 1968. All and all, there will be a corn crop this year, even if the harThere is a lot of corn yet to be harvested this year. So what vest is delayed still further. Farmers are fully aware there is nothhappens to the corn that is still standing in the field? ing they can do about the weather. They complain when it is Some researchers from Ohio State University attempted to bad. When it is good, they smile but worry when it will become answer this question. There is some good news and some bad bad. news in their research. Farmers adjust when they can and work really long hours Here are some of the consequences of a later-harvested corn when they must. crop: • 90 percent of the yield loss takes place after mid-NovemWilliam Bailey is director of Western Illinois University’s school of agriber, and current reports are of pretty good yields, despite all of culture in Macomb. His e-mail address is WC-Bailey@wiu.edu.
No love lost in the history of human-fly relationship The poet Karl Shapiro began his poem “The Fly” with the line: “Oh hideous little bat, the size of snot.” Shapiro, like most people, considers the fly to be a despicable organism. Shapiro’s poem is about the house fly, an insect that has been a companion of unwilling humans from at least the beginning of recorded time. Even the scientific name of the housefly, TOM TURPIN Musca domestica, suggests a close association of the insect with humans. To be sure, there are flies other than the house fly. Flies are classified in the scientific order Diptera, a word that literally means two wings. There are more than 15,000 named species of Diptera found in North America, so there are a lot of flies in the world. The most widely dispersed and the best known is the house fly. The house fly neither bites nor stings, so what is it about
this insect that elicits such disdain among humans? The predominant reason seems to be that the house fly can be called a filth fly. That term has been used to describe fly species that are associated with waste material, such as sewage and garbage, or with rotting plant material, animal manure, and dead animals. House flies hang around decaying stuff in order to deposit eggs on material that will be good food for their maggots. That in itself is not a bad thing. After all, fly maggots are part of nature’s recycling crew. However, house flies travel some distance from their breeding sites and that often results in conflict with humans. Humans are not happy about sharing their abode with an insect that has been walking around on a dead animal or on raw sewage. The reason for all of this walking around is that the house fly tastes with its feet. So when the fly stomps over our mashed potatoes and gravy, it is searching for a meal. Of course, most people have come to recognize that flies are not at all selective about the type of material on
which they walk. That means that the house fly is capable of picking up disease organisms on its feet and transmitting them from one area to another. Consequently, the house fly has been shown to be able to carry germs that cause a number of human diseases, including typhoid, cholera, dysentery, tuberculosis, and anthrax. As if being a vector of disease organisms is not bad enough, the house fly adds insult to injury by being a nuisance pest — flying around and crawling on people and things. But to most people, the most disgusting thing that the fly does is vomit on its food. The house fly has sponging mouthparts and has to predigest solid food before it can ingest it. So the insect spits digestive juices on potential food before sopping it up. Having a fly spit in our food is insult enough, but to be reminded that the insect might have been walking around on something like garbage, sewage, or a dead animal before taking a hike on our food sort of seals the deal of why we hate house flies. Consequently, we try to avoid contact with them.
Back in the Middle Ages, humans took note of the fact that some animals, such as horses, had built-in fly swatters. So we took hair from the tail of a horse, or used some suitable substitute material, attached it to a stick and called the device a fly whisk. We used fly whisks to keep flies from landing on our food, and we developed swatters to inflict lethal physical damage to flies that would dare come within reach. Physical barriers such as window screens were employed to keep flies out of our places. And, of course, in modern times we concocted chemicals to spray on the offending insects. I have an old fly swatter that is constructed of window screen attached to a stick. It is not just a fly swatter but also an advertising device. On the handle it says: “For your health’s sake, swat the fly and buy Dr. Lynas’ Products.” I don’t know who Dr. Lynas was, but he certainly was exploiting human hate of flies in his advertising. Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.
Editor: Jim McCarthy states that agricultural biotechnology is “an absolutely essential tool if we’re to achieve food security in the 21st Century” (Perspective, FarmWeek, Nov. 9, 2009). I disagree because the more that this “tool” is used worldwide, the greater will be the loss of the natural genetic diversity in the world’s organisms (domestic and wild). Preserving this diversity is essential for food security. Mr. McCarthy also states that “A bullheaded refusal to take advantage of biotechnology is probably the very worst practice around.” To the contrary, the continued or increased use of industrial agriculture, which is highly dependent on fossil energy for fertilizer and pesticides, and, therefore, is not sustainable, ranks high on my list of very worst practices. Mr. McCarthy claims that “Europe must ... use its influence, especially in Africa, to encourage biotechnology.” Again, I disagree. There is another set of successful farming practices, which do not use biotechnology and other industrial agricultural practices, but which do respect local cultural and agricultural historical wisdom and traditions, and which do embrace sustainable, soil fertility-building farming approaches throughout the world, including Africa. See, for example, reports from the organization Food First. Finally, for whoever wrote the headline for this column, “Farmers are feeding the world ... ,” I have read many reports to the contrary. One example is an Associated Press article in the Nov. 12, 2009, issue of The Pantagraph, which takes note of a new report by UNICEF released before an international summit on the problem of world hunger. The Associated Press notes that nearly 200 million children under 5 in four countries have stunted growth because of insufficient nutrition and that 1 billion people in the world are hungry. I think that sustainable, not industrial, agriculture is more likely to solve these problems. HERMAN BROCKMAN, Congerville