THE ADMINISTRATION is focusing on the nation’s marine highways, rail, and mass transit to make U.S. transpor tation more green. ...............................................2
RESTORATION of backwater lakes, wetlands, and prairies in the Emiquon Preserve is progressing but has posed more of a challenge than scientists had anticipated. .....3
THE HOSPITAL community is in favor of health care reform, but Congress must approach it “the right way,” a hospital association official believes. ...............................5
Monday, October 26, 2009
Two sections Volume 37, No. 43
Wet crop presents a number of harvest challenges BY DANIEL GRANT FarmWeek
This year may be wetter than most so far, but all the moisture apparently hasn’t washed away the risk of fires during harvest. The problem this year is much of the crops are coming out of the fields with such high moisture content that many farmers and elevator operators are pushing grain dryers to the limit. Add in the fact that a wet crop is more difficult to harvest often resulting in more debris in the grain, and it presents a perfect scenario for grain dryer fires, according to Tom Bressner, general manager of Assumption Cooperative Grain Co. “Some of the early corn, 10 percent at most, that got planted in April came out (with moisture readings) in the low 20s,” Bressner said last week. “But now that farmers are done (harvesting early varieties), it seems everything coming in is in the 24 to 30 range.” Corn that wet can reduce the capacity on a standard 5,000bushel-per-hour dryer by as much as 60 to 70 percent, according to John Lee, director of safety, health, and environ-
mental service for the Grain and Feed Association of Illinois. “They (elevator operators) have to slow everything down and heat (the grain) as much as they can,” Lee said. The situation has caused delays and/or early shutdowns at elevators, and it has increased the chance of dryer fires substantially, Lee said. Bressner knows the risk first hand: one of Assumption Cooperative’s five locations (at Pana) experienced a dryer fire earlier this month. (See picture on page 2.) “It has structural damage, and by the time we fixed everything harvest, would be over,” said Bressner, who reported that the cooperative instead is getting a new dryer it hopes to have online within the next week or two. “Most dryers are designed to run 24 hours a day, seven days a week,” Bressner continued. “But I highly recommend shutting down the dryer once or twice a week, cleaning it out, and starting over. “Otherwise, if you leave all the (grain debris) in there, we’re living proof what can happen.” Dryer fires also were reported last week in Iowa,
Michigan, and Minnesota. Elsewhere, a fire broke out last week at some private storage bins north of Rantoul. Storage space in Illinois from 2000 to 2007 increased from 1.094 billion bushels to 1.262 billion bushels (offfarm) and from 1.22 billion
bushels to 1.37 billion bushels (on farm), but dryer capacity during that time reportedly remained stagnant or even declined. “Up until last year, a lot of the stuff coming out of the field you could run straight out to the bins,”
Bressner added. “We saw enough of this (in the grain industry) people started pulling dryers out of their budget because you couldn’t pencil it out. Now I wouldn’t be surprised if (dryers) are a pretty hot commodity next year.”
Smoke rolls off some on-farm grain bins north of Rantoul after an apparent dryer fire broke out last week. The risk of dryer fires is up considerably this year due to the extreme wetness of the crop and the strain it’s putting on drying capacity in the state, according to John Lee, director of safety, health, and environmental service for the Grain and Feed Association of Illinois. (Photo by Bob Dyer, Region 2 manager for Illinois Farm Bureau)
Periodicals: Time Valued
Bipartisan bill attempt at estate tax compromise Farm Bureau last week hailed introduc- some form of estate tax reform this sesestate tax repeal, but AFBF’s goal for the tion of bipartisan U.S. House-proposed sion. Under current law, the tax will be present is a permanent $10 million exempestate tax reforms. eliminated in 2010 — raising largely tion indexed for inflation and transferable The American Farm to a spouse. Bureau Federation (AFBF) “We are pleased there is supports The Estate Tax bipartisan support to do better Relief Act of 2009, unveiled ‘We are pleased there is bipartisan sup- than current law in the House Thursday by Reps. Shelley and commend the sponsors of port to do better.’ Berkley (D-Nev.), Kevin the bill for working to increase Brady (R-Texas), Artur Davis the exemption,” AFBF Presi— Bob Stallman dent Bob Stallman said of the (D-Ala.) and Devin Nunes American Farm Bureau Federation (R-Calif.). measure. The bill would boost the “Extending the current existing $3.5 million individual estate tax exemption of $3.5 estate tax exemption to $5 million per per- Democrat fears of lost federal revenues million per person and the tax rate at 45 son and reduce the top estate tax rate to — potentially to return in 2011 at prepercent is a non-starter for Farm Bureau, 35 percent in equal increments over 10 2002 tax rates and a $1 million individual which supports an increase in the years. exemption. exemption to $10 million a person,” he Congress is under the gun to enact Farm Bureau continues to support said. FarmWeek on the web: FarmWeekNow.com
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, October 26, 2009
Quick Takes AMMONIA SAFETY VIDEO ONLINE — Farmers can brush up on anhydrous ammonia safety by watching a 12-minute video available online from the Illinois Fertilizer and Chemical Association (IFCA). IFCA and the Illinois Department of Agriculture (IDOA) produced the video outlining the proper safety procedures farmers should take everytime they handle anhydrous. The video highlights the most common safety errors that can lead to an accident or ammonia release. Other topics covered include proper handling, transpor tation, application, first aid, and emerg ency response. To watch the video, go to {www.ifca.com} and click on the anhydrous tank. The Fertilizer Research and Education Council paid for the video with proceeds from a 12.5-cent fee on each ton of agricultural fertilizer sold in Illinois. TWO HUNDRED E85 STATIONS IN STATE — Illinois Gov. Pat Quinn Friday helped the Illinois Corn Marketing Board (ICMB) celebrate the opening of the state’s 200th E85 station. A special ceremony was held at the Green Mount Motomart in Shiloh. Joining Quinn were state Rep. Eddie Lee Jackson (DEast St. Louis), Larry Hasheider, ICMB director; Greg Geunther of the Mon-Clair County Corn Growers; and Angela Tin of the American Lung Association of the upper Midwest. Flex-fuel vehicle owners received a discount on E85 at the Shiloh station during the event. NEW TEAM TO PLAY IN ‘CORN CRIB’ — The Illinois Corn Marketing Board (ICMB) last week unveiled a creative new promotion. ICMB partnered with a new minor baseball team in Central Illinois, the Normal CornBelters, and last week announced the new stadium for the team will be known as “The Corn Crib.” “The opportunity to partner with the Normal CornBelters couldn’t have come at a better time for Illinois farmers,” said Jim R a p p, I C M B FarmWeekNow.com chairman. “The Comments from team officials about the gap in underimportance of the Corn Crib to cons t a n d i n g sumer understanding of farming are at between the FarmWeekNow.com. farm and the fork has rarely been problematic for farmers until recently.” ICMB hopes the team and its stadium will showcase information about corn and farmers in a casual and entertaining atmosphere. The CornBelters, who will begin play in the Frontier League on May 21, plan to offer several corn-related concession items including corn dogs, corn chips, corn nuts, corn fritters, and sweet corn. Hal Lanier, 67, a former Major League infielder who managed the Houston Astros to a division championship in 1986 and served as the third base coach for the St. Louis Cardinals World Series champions in 1982, has been hired to manage the CornBelters in their inaugural season.
(ISSN0197-6680) Vol. 37 No. 43
October 26, 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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TRANSPORTATION
LaHood: Marine highway part of green transportation BY KAY SHIPMAN FarmWeek
U.S. Transportation Secretary Ray LaHood last week celebrated improvements along the Illinois River and noted the nation in the future will depend more on its “marine highways.” “Everything is moving toward cleaner, greener, and more efficient,” LaHood said during a keynote address at the Illinois River Conference in Peoria. “We will put more emphasis on marine highways and get trucks off the road.” LaHood and Gov. Pat Quinn were honored by the Illinois River Coordinating Council for Secretary their leadership in protecting Ray LaHood and enhancing the river basin. In addition to emphasizing the nation’s water highways, the Obama administration also is focusing on light and high-speed rail and mass transit systems, according to the secretary. “The question is: How do we pay for it?” he asked, adding the president included $8 billion to help develop high-speed rail. LaHood would-
n’t speculate about Illinois’ chances of obtaining funding as part of a Midwestern high-speed rail project. “There are a lot of good proposals,” he said. LaHood also stressed the need for the nation to upgrade the locks and dams along the Mississippi and Illinois rivers. “It will be up to Congress to make sure the funding is there to fix up the potholes along the river,” he told FarmWeek. “We know the locks and dams are vital to the Illinois River, and they need to be fixed up.” LaHood called the Illinois River the state’s greatest natural resource and “an economic engine for every town along the river.” He noted the river is valued for its aesthetic qualities and recreation opportunities as well as commerce. A long-time river enthusiast, LaHood mentioned several conservation programs, wetland and habitat restoration projects, wildlife refuges, and other efforts to improve the river basin. He challenged conference participants to build on those successes. “This area is an incubator for good ideas that have been implemented,” LaHood said.
Barge supporters
River transportation ‘greener way to go’ BY MARTIN ROSS FarmWeek
As Congress and the administration continue to measure carbon footprints in the manufacturing, energy, and transportation sectors, river interests are presenting the case that barge transportation is “the greener way to go.” The National Waterways Foundation (NWF), which supports navigational improvements on the Upper Mississippi River, argues inland waterways transportation generates fewer emissions of particulate matter (soot), hydrocarbons, carbon monoxide, and nitrous oxide than do rail or trucks on a per-ton-mile-moved basis. The U.S. Environmental Protection Agency estimates 33 percent of annual U.S. CO2 emissions come from “transport-related activity.” But, according to a Texas Transportation Institute study, barge tows generate 19.3 tons of greenhouse carbon dioxide per million ton-miles of cargo moved vs. 26.9 tons of CO2 generated by rail freight transportation and 71.6 tons produced by trucks. NWF suggests that if the 274.4 billion ton-miles of commercial activity on inland waterways reported in 2005 had shifted to rail or truck, rail transport might have generated 2.1 million added tons of CO2 and
truck transportation would have produced 14.2 million additional tons. A study released by NWF indicates barges can move a ton of cargo 576 miles with a single gallon of fuel, compared to trains at 413 and trucks at 155. Jerry Knapper, assistant vice president of major Upper Mississippi grain carrier Ingram Barge Co., noted
the recent rail industry advertisements emphasizing its greenhouse footprint relative to truck transportation. “That’s absolutely true, but it’s also true that barges emit a heck of a lot less than the railroads,” Knapper told FarmWeek. “We’re a little late to the party on this, but I think it is a good story, and I think it’s good for the country.”
WET HARVEST VICTIM
Six local fire departments battled a recent grain dryer fire at the Assumption Cooperative Grain Co. facility in Pana. The fire broke out as elevator employees attempted to dry high-moisture corn, a continuing nemesis this harvest season. The fire occurred too high for fire department ladder trucks to reach, so holes were punctured in the lower level of the dryer to allow the burning corn to descend to a level firefighters could reach. The dryer was considered a loss. (Photo by Gene Reed Photography, Pana)
FarmWeek Page 3 Monday, October 26, 2009
ILLINOIS RIVER Learning on the river
Restoration project teaching nature is complex BY KAY SHIPMAN FarmWeek
Water and wetland plants cover 4,300 acres of former cropland along the Illinois River, but scientists are learning it is not easy to turn back Mother Nature’s clock. The Nature Conservancy (TNC) owns and is restoring 7,100 acres in the Emiquon Preserve in Fulton County. The land, originally a wetland, had been drained and farmed for several decades. The restoration is a work in progress with scientists learning to cope with river systems, invasive fish species, and other challenges, according to Jason Beverlin, deputy director of TNC’s Illinois River program. Last week Beverlin described the extensive project from atop a Native American burial mound overlooking a wide expanse of river and backwater lakes. The site was one of several stops of the Illinois River Conference conservation tour. “The wetland (restoration) part was kind of easy. We just stopped pumping,” Beverlin said. Hundreds of wetland plant seeds that had been dormant sprouted. However, high river levels resulted in too much water on the wet-
lands for long periods this year. For many years, wetland and floodplain restoration were recommendations of several Illinois River plans. But that idea is proving to be a challenge.
“It’s turning out to be more complex than we thought. We thought we could buy a levee district and open them (levees) up, but it’s more complicated. “It looks like (having) gates in the levee and a managed
connection to the river would be better,” said Richard “Rip” Sparks, research director at the National Great Rivers Research and Education Station. To date, TNC has planted 310,000 trees, averaging 400-
Jason Beverlin, center, deputy director of The Nature Conservancy’s Illinois River program, describes the restoration at Emiquon, near Havana. The 7,100-acre preserve (in background right) includes wetlands, forest, and prairie. Illinois River Conference participants visited several sites on a river basin conservation tour last week. (Photo by Kay Shipman)
some seedlings per acre; 600 acres of prairie; and stocked 1.5 million fish, including such unusual species as spotted gar and bowfin. It also is managing 14 Native American burial mounds. Prior to returning the land to a wetlands, TNC had to remove 10 farm buildings and homes — some with asbestos insulation — underground fuel tanks, and other structures. That process took two years and was expensive. “We have spent millions on restoration to get where we are today,” Beverlin told the tour group. TNC also pays between $60,000 and $70,000 a year in property taxes. Removing the land from local tax rolls would have been detrimental to local school districts and other taxing bodies, Beverlin explained. Future plans include development of four public areas: a boat launch and trailer parking area, a bottomland observation area with boardwalk, a two-story wetland observatory, and a trailboardwalk. Beverlin said TNC has money to fund most of the public area projects and hopes to start construction in November, depending on the weather.
Decade marks successes in Illinois River Basin The Illinois River Basin has made environmental improvements over the past 10 years, thanks to many landowners, volunteers, government agencies, and organizations, according to a report released last week during the Illinois River Conference in Peoria.
“A Decade of Changes in the Illinois River Watershed” highlights projects, activities, and data from a vast conservation partnership, said Jon Hubbert with the Natural Resources Conservation Service (NRCS) and a driving force behind the report. Hubbert, assistant state
IFB raises several concerns about EPA atrazine review Illinois Farm Bureau joined the American Farm Bureau Federation in seeking more time to comment on the U.S. Environmental Protection Agency’s (EPA) proposed atrazine study. On Oct. 7, EPA announced a new year-long study of potential health risks related to atrazine. A Nov. 3 meeting is scheduled for EPA’s science advisory panel. A 15-day public comment period is too short for farmers who are in the middle of harvest, wrote Nancy Erickson, IFB director of state and natural resources. She urged the agency to allow adequate time for agriculture to respond. Erickson also questioned the timing of another extensive review of atrazine. “One concern we have with the review is that we do not want to see the scientific process the agency has used through the years offset by non-scientific information and by groups with another agenda that would not support an unbiased scientific process,” she wrote.
conservation in Northeastern Illinois, said the report sprang from criticism that nothing had happened along with river during 20 years of river conferences. “We decided we needed to get the work out,” he told FarmWeek. The report examines efforts involving working farmland and “reserved” land enrolled in long-term conservation programs and no longer in agricultural production. Hubbert stressed the importance of conservation on both types of land. “The efforts farmers made are paying off,” he said. “Things are happening to benefit the river — not one person’s efforts — but the whole collaboration is making a difference,” Hubbert added. About 11,480 acres in 18 counties are enrolled in the Wetland Reserve Program and more than 340 streambank projects were funded by
the state Conservation 2000 program. The Environmental Protection Agency funded more than 200 nonpoint source pollution control projects throughout the river watershed. Under the Conservation Reserve Enhancement Program (CREP), Illinois landowners have established conservation practices on 126,951 acres in the river watershed. Through CREP, the state
enrolled an additional 81,995 watershed acres with permanent conservation easements. “People are another part of the success. More people and groups have taken an interest in the river,” Hubbert noted. Through his work on the report, Hubbert said he gained a new perspective on the broad scope of conservation efforts along the river. The report will be available online in the near future. — Kay Shipman
U of I chancellor resigns University of Illinois Chancellor Richard Herman resigned last week, the second administrator to step down following an admission scandal at the university. His resignation takes effect today. Herman, chancellor since 2004, will remain on campus as an adviser to Interim President Stanley Ikenberry, pending approval by the U of I
Board of Trustees. After June, he will become a math professor at the university. In the interim, Ikenberry and Interim Provost Robert Easter will take on many of the chancellor’s duties. The U of I and its recently appointed board of trustees will be searching for a permanent president, chancellor, and provost.
FarmWeek Page 4 Monday, October 26, 2009
RISK MANAGEMENT
ACRE outlook: Too soon to tell? BY MARTIN ROSS FarmWeek
As the USDA Farm Service Agency confirmed Illinois’ lead in initial average crop revenue election (ACRE) enrollment, some analysts were beginning last week to challenge earlier prospects for program payments. Based on USDA’s August and September crop reports, many forecasters saw Illinois corn, soybean, and wheat growers potentially “in the money” for 2009 payments under the ACRE coverage. But rising corn and bean prices and October supplyand-demand projections have dampened some ACRE projections. However, an October runup in corn and soybean prices tells only part of the story, Illinois Farm Bureau risk management specialist Doug Yoder advised. In fact, the story has only begun, and the outlook for prices — and thus potential ACRE payments — “could all change with some sunshine,” he said. Illinois led the nation in 2009 ACRE signups, with nearly 26,000 farms (about
one in six farms statewide) enrolling a total of 4.8 million acres (23 percent of Illinois’ total base acreage). Those producers gave up 20 percent of their annual direct payments and 30 percent of their marketing loan rate for the remainder of the 2008 farm bill by opting for ACRE rather than price-triggered countercyclical payments. Yoder stressed “we’re only in month two” of the 12month marketing year. ACRE payments are based on an average national price for the crop marketing year and individual state yield triggers: Final ACRE yields will be released in March, but the national price won’t be available until next Sept. 1. “It’s awfully, awfully early to tell,” Yoder argued. “The next (USDA) crop report is November’s (Nov. 10), and we’ll have to wait until then to see what USDA says in its yearly price predictions. “We can go up one month and down the next, but I think the better approach is to take USDA’s prediction for the season-ending price — that’s the measure ACRE will use.
“I agree that, this month, the price definitely will be going up. But once we get into full-fledged harvest, there’s a good chance corn (prices) could go back down. Right now, we’re just getting started — the market needs corn, and it’s just not getting it.” The late harvest has taken its toll: Yoder noted many producers already have been forced to forfeit a significant share of their corn or bean bushels to pay for drying costs at their elevator. While light test weights or moisture-related shrinkage affect marketed bushels, mold problems would not be covered under ACRE yield coverage. However, if ACRE payments eventually are triggered, that could help offset quality discounts or disease-related losses incurred by growers, Yoder suggested. A greater immediate concern for Illinois producers are prospects for crop revenue insurance claims. Crop revenue coverage, revenue assurance, and county-based group risk income program policies trigger payments based on October prices, and this
month’s price rally reduces prospects for 2009 payouts
under revenue policies, Yoder warned.
Crop insurance deadline delayed harvest concern? Illinois growers struggling to beat the weather are racing a second clock — a crop insurance deadline. Dec. 10 is the official end of the 2009 insurance period for spring-planted crops. Policyholders may harvest crops following that deadline, but any weather-related “peril” that occurs after Dec. 10 will not be covered unless it is determined to be merely a continuation of an existing peril — i.e., wet conditions that have prevented harvest. If those conditions persist in an area past Dec. 10, resulting losses should be covered. However, once post-Dec. 10 weather conditions clear sufficiently to allow harvest, losses due to subsequent perils would be ineligible. As crop insurance deadlines approach, insurers will notify USDA’s Risk Management Agency (RMA) of any continuing perils in individual counties, with an estimate of the number of growers affected. RMA will determine whether to continue area coverage past Dec. 10. Thus, if imminently harvestable corn or beans are still in the field by late November, growers are advised to contact their insurance agent. If a producer does not harvest crops after Dec. 10, when conditions seemingly would have allowed harvest to progress, claims representatives must appraise fields prior to approving any claim. If foul weather conditions persist, no appraisal would be necessary until after the peril ends. In late 2008, wet conditions in parts of Northern Illinois, Wisconsin, and the Dakotas prompted RMA to extend the end of the policy period. — Martin Ross
Animal systems educator reflects on lengthy career BY DANIEL GRANT FarmWeek
Dave Seibert, who has been a University of Illinois Extension educator as long as some farmers can remember and longer than others have been alive, recently discussed his lengthy career in an interview with FarmWeek. Seibert, who began his professional career as an Exten-
‘ It’s very rewarding to wor k with people who really appreciate your assistance.’ — Dave Seibert U of I Extension educator
sion educator in McDonough County in 1968 (the year Richard Nixon was elected president of the United States), plans to retire early next year after a 42-year career. The animal systems educator previously spent a few years on the U of I main campus in Urbana where he managed the swine nutrition research farm before he settled into his current position in East Peoria in
January of 1974. “Some dramatic changes have occurred over that time,” Seibert said. “Some good; others not so good.” Seibert has focused a great deal of his career on livestock breeding and genetics education. In 1991 he was named manager of the Illinois Performance Tested Bull Sale and since that time the sale has generated more than $4 million in gross revenue. Seibert also has conducted programming and studied beef production in Mexico, Australia, Brazil, Argentina, Uruguay, and the Ukraine. Last year for his numerous efforts and contributions to the livestock industry, Seibert was presented the Illinois Friend of Agriculture award at the Illinois Commodity Conference. “When I look back, I couldn’t have been more pleased than going into Extension and working with people,” Seibert said. “It’s very rewarding to work with people who really appreciate your assistance.” The change the past four decades that concerns Seibert the most is the rapid consolidation of the livestock industry. From 1997 to 2006 alone, the number of cattle farms in Illinois declined from 26,000 to
19,700, the number of dairy farms fell from 2,400 to 1,300, the number of hog farms plummeted from 7,500 to 2,900, and the number of farms with sheep slipped from 2,800 to 2,000, according to the
National Agricultural Statistics Service’s Illinois office. “That consolidation has been very dramatic, and I’m not sure it’s all for good,” he said. “A lot of people left agriculture because of that change
and consolidation.” Seibert, however, won’t leave agriculture entirely when he retires early in 2010. He plans to do some consulting and continue his work with the bull sale.
Eight-trait corn new to endorsement The federal crop insurance biotechnology endorsement (BE) has grown from a recognition of GMO yield improvements to a crucial element in biotech corn marketing, according to a University of Illinois risk management specialist. For 2010, USDA’s Risk Management Agency (RMA) is expanding the pilot premium discount endorsement to growers who plant corn hybrids such as Monsanto/Dow AgroSciences’ new eight-trait SmartStax technology. SmartStax includes GMO traits for weed and above- and below-ground insect pests. BE, launched in 2008, covers non-irrigated corn acres planted to qualified multiple-trait “stacked” varieties. Producers must plant a minimum 75 percent qualifying stacked hybrids on each insured unit. The endorsement is based on projected yield gains and thus potentially reduced crop risks associated with planting
GMO varieties. “I can’t see where (adding SmartStax) would do anything, you would hope, but improve what the triple stacks accomplished as far as reducing low yields,” U of I’s Gary Schnitkey told FarmWeek. “I don’t see there being a concern with adding SmartStax to the biotech endorsement. “We’ve actually seen that program grow quite a lot in 2009 vs. in 2008. In 2009, they expanded the (GMO corn) traits that could be included in it. That made it a lot easier for people to make use of the program. “If SmartStax wasn’t included, there would be an incentive against planting it (relative to other BE-eligible products).” When the original endorsement was unveiled for 2008 in Illinois, Indiana, Iowa, and Minnesota, it was available to producers who planted Monsanto’s YieldGard Plus with Roundup Ready Corn 2 or YieldGard VT Triple varieties.
The endorsement was expanded for 2009 to Herculex and Agrisure triple stacks marketed respectively by Dow and Syngenta. RMA must extend BE after the 2011 crop year. Producers who fail to comply with BE requirements forfeit all corn coverage but remain liable for 20 percent of their premiums and are open to civil or criminal penalties. Growers are subject to insurer spot checks: Schnitkey stressed the need to precisely identify refuge areas to ensure multi-stack samples are taken from appropriate areas. One of the past challenges of meeting BE requirements has been maintaining both a 75 percent planting and a required 20 percent non-Bt insect refuge planting within a half-mile of Bt corn. However, because SmartStax offers multiple modes of insect protection, the U.S. Environmental Protection Agency has approved a 5 percent refuge for the eight-stack. — Martin Ross
FarmWeek Page 5 Monday, October 26, 2009
HEALTH AND SAFETY
Hospital advocate wary of government-run care Must address health reforms ‘the right way’ BY MARTIN ROSS FarmWeek
U.S. Senate health care proposals reportedly would put more Americans in line for improved health coverage, rural hospitals in a better position for survival, and Senate leadership potentially between a rock and a hard place. Congressional leaders continued last week to project passage of comprehensive health care reform by year’s end, though American Farm Bureau Federation (AFBF) policy analyst Pat Wolff noted there are mere weeks remaining in the 2009 legislative calendar. Further, Senators are confronted with two major competing proposals: a Senate
Health Committee plan that includes the hotly debated, government-run “private option” for the nation’s currently uninsured, and the Senate Finance Committee’s blueprint for a system that instead would extend pooled coverage through state or regional cooperatives. AFBF favors co-op creation over government-managed health care “to foster competition,” Wolff said. Illinois Hospital Association Senior Vice President Howard Peters said nearly 2 million Illinoisans are uninsured and noted the cost of “uninsured care” provided by hospitals and emergency rooms statewide. Peters told FarmWeek “the hospital community is very much in favor of health care reform,” but stressed Congress must approach it “the right way.” He is disappointed by esti-
mates that the Senate Finance plan would extend coverage to only 91 percent of U.S. consumers (“That leaves about 25 million people uninsured”). But Peters argues the plan is fundamentally workable and includes “some good things for small and rural hospitals.” IHA harbors “a lot of reservations” regarding a public option, he said. The association is concerned about reimbursements to hospitals and physicians being based strictly on federal Medicare rates. Peters reported Medicare pays Illinois hospitals an average 90 percent of actual care costs, shifting part of the burden to employers or individuals who pay for private coverage. “We’re open to and supportive of the co-op idea out of the Senate Finance Committee, as long as a nongovernmental entity is responsible for operating the
program,” he said. “We’re not interested in seeing large numbers of additional people covered by a government-run program that doesn’t pay full costs of care. We want to see rates paid to health care providers being negotiated with non-government entities. We don’t want to see the private carriers totally crowded out of the marketplace.” House Speaker Nancy Pelosi (D-Calif.) continues to support the public option. But Senate Majority Leader Harry Reid (D-Nev.) faces divisions even within his party and, according to Wolff, likely will support whichever measure eventually can garner “60 votes,” the number needed to move the measure. Under the Senate Finance proposal, co-ops would be established under the U.S. Tax Code essentially as “a new
kind of non-profit,” with an estimated $6 billion in proposed federal startup support, Wolff said. Health co-ops would function less like ag coops and more like credit unions, effectively brokering services for members, she suggested. AFBF seeks to ensure Farm Bureaus would be eligible to establish co-ops. Beyond provisions for extending coverage nationwide, the Senate Health Committee plan would require employers to provide insurance, while the Finance Committee proposal eschews employer mandates. Farm Bureau seeks exemptions from any employer insurance mandates for seasonal ag workers. The Health Committee proposal would require employers with at least five full-time, year-round workers to offer coverage, but would not count temporary labor.
ISA supports approval Ag practices, food safety workshop for healthy bean trait scheduled for specialty growers The Illinois Soybean Association (ISA) has taken a healthy interest in a new GMO trait that offers consumer dietary benefits, a healthier “profile” for soy oil, and potential value-added opportunities for Midwest growers. Pioneer is seeking USDA approval for “controlled release” of soybeans with Plenish, a high-oleic GMO trait aimed at reducing trans fats in processed soy cooking and food oils. The company is seeking a processor-partner to market Plenish-based oils that, according to Pioneer’s Jerry Harrington, would be “high in heart-healthy monounsaturated fats.” Pending USDA approval, Pioneer plans initially to market Plenish beans to Iowa and Ohio growers with access to regional soy crushing facilities. While he could not offer specifics, Harrington anticipated “a good number of acres” would be planted to the soybean within a few years following introduction. In October comments to USDA, ISA President Ron Moore offered his association’s “strong support” for approval of the high-oleic, value-added trait. “The Illinois Soybean Association actively supports stewardship programs which promote the use of all crops in a manner which ensures the protection of public health and the environment,” Moore stated. “We also support products and technologies that offer our producers the tools needed to produce safe and abundant soybeans.” Harrington noted his company also is exploring the possibility of “environmentally friendly” alternatives to petroleum-based products such as lubricants. Varieties with the Plenish trait will include resistance to soybean cyst nematode, phytophthora root rot, and sudden death syndrome. Canada approved the trait in May, and Pioneer anticipates approval of Plenish beans by other “key” international import markets by 2012. In the interim, the company will continue to limit marketing and production, Harrington reported. “We want to preserve the marketplace for our customers,” he told FarmWeek. “Since this will be controlled within an identity-preserved system, that keeps (Plenish beans) out of the export market.” — Martin Ross
The University of Illinois Extension in Kankakee County, in partnership with Cornell University and Kankakee Community College, will offer a Nov. 5 workshop on agricultural practices and handling practices for specialty crops. The program will run from 8:30 a.m. to 4 p.m. at the Kankakee Community College, 100 College Drive, Kankakee. The registration deadline is Tuesday. The guest speaker will be Elizabeth “Betsy” Bihn, the national good agricultural practices coordinator for 10 years and an Extension associate in Cornell’s food science department. Speakers will include a USDA good ag practices inspector and a grocery retailer who will discuss food safety practices. Recent produce-associated, food-borne illness outbreaks have raised public awareness of produce food safety and increased producer buyers’ demands to have third-party auditors verify that
farms implement food safety practices. The workshop will cover produce safety impacts, retailer food safety concerns, auditing farms for food safety, and crisis-risk management. The cost is $30 per person and includes lunch. Online registration is available at {http://kankakee.extension.uiuc.edu}. Online registrants may pay by credit card or by check, which will be a tentative registration until payment is received at University of Illinois Extension, 1650 Commerce Drive, Bourbonnais, Ill., 60914. Registration also may be handled over the phone by calling 815-933-8337 to register by credit card. For more information, contact James Theuri, agriculture and natural resources educator with the Kankakee County Extension, at 815-9338337.
Evaluate fall nitrogen applications this year If fall anhydrous ammonia is applied when soil temperatures are too warm and a nitrogen stabilizer isn’t used, a significant amount of nitrogen can be lost in saturated soil through denitrification and leaching, according to Bob Frazee, University of Illinois natural resources educator. The recommended soil temperature for anhydrous applications is less than 50 degrees Fahrenheit (F). To enhance nitrogen efficiency and avoid environmental problems, Frazee encouraged farmers to consider the form of nitrogen being used, when and how it is applied, and the use of nitrification inhibitors. He also advised farmers to make certain to take credit for other nitrogen sources. If producers still choose to fall apply their nitrogen, he recommended they wait until the third week of October or until the soil temperature at four inches is less 50 degrees F to apply ammonium nitrogen — unless a nitrification inhibitor is used. At 50 degrees F or less, most of the nitrogen
won’t convert to nitrate or be lost via leaching or denitrification, Frazee noted. Fall applications with an inhibitor should be made when soil temperatures are no warmer than 60 degrees F, he added. The Illinois State Water Survey and the Illinois Department of Agriculture offer a website that shows daily 4-inch bare soil temperatures across the state at selected sites. The site is {www.sws.uiuc.edu/warm/soiltemp.asp}. These data are intended to help Illinois farmers with timing of post-harvest nitrogen fertilizer applications and are specifically representative of the actual locations where soil temperature observations are made. Applicators should monitor the soil temperature of each field before fall fertilizer applications. U of I research suggests ammonium fertilizers are the best form of nitrogen for fall applications. They give added protection against leaching from heavy rains in the fall and winter, if they are applied when temperatures are cool enough to prevent the ammonium from converting to nitrate.
FarmWeek Page 6 Monday, October 26, 2009
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: The week started out with good weather from Sunday (Oct. 18) through Wednesday night. We were able to combine soybeans all four days, even though they were from 15 to 17 percent moisture and are in a drying bin now. Late Wednesday night the rain started and by Friday morning, we had received 2 to 2.5 inches in Winnebago County. The ground and the corn and beans already were too wet, and all this extra rain is going to be a big problem. Less than half of 1 percent of the corn has been harvested and maybe 20 to 30 percent of the beans have been combined. The corn that has been harvested is from 32 to 40 percent moisture with test weights in the low 50s. On a positive note, Winnebago County passed a wind farm ordinance Thursday night, so by this time next year, there should be some wind turbines going up in the southwest part of the county. Pete Tekampe, Grayslake, Lake County: Another cool, wet week in Lake County. Got more than 2 inches of rain and it was still raining Friday morning. Rain is forecast for four of the next seven days. Replanted beans in the low spots froze prematurely two weeks ago and are now under water. Not many beans have been harvested, but those that have been were at 14 percent moisture or more. Not much corn has been picked. A neighbor checked my early corn the other day and it was more than 31 percent. Hopefully, the weathermen are wrong and we can get those combines moving. Leroy Getz, Savanna, Carroll County: Harvest moved forward the first half of last week. Soybeans were coming out and so were the Asian beetles. Corn moisture hasn’t changed much. We started Monday (Oct. 19) in some 23 percent moisture corn, and that was the driest we could find. Rain Thursday and Friday morning has totaled 2 inches so far. There won’t be much harvest for several days. Ron Frieders, Waterman, DeKalb County: This whole year has been one you have had to do things beyond the usual way we operate. Harvesting this year’s crops will push and exceed the capabilities of men and machine. A few people are trying to harvest corn, which is 32-42 percent moisture. Grain handling equipment is not designed to handle crops with that high of moisture. One grain dryer already has burned. It is believed corn stopped flowing and that caused it to catch fire. How to get this year’s crop harvested and dried to an acceptable level will be a huge challenge. Probably 20 percent of the soybeans were harvested last week. Two farmers were pushing the envelope. I haven’t heard of anyone having beans at 13 percent. Beans came to the elevator from 13.5 to more than 16 percent moisture and white mold and other soybean diseases badly hurt yields. We harvested a good 100-acre field and the beans produced only 35 bushels per acre. Larry Hummel, Dixon, Lee County: How does that joke go? The corn was so wet, they had to use a potato fork to shovel it. That would be funny if it weren’t true and I wasn’t on the working end of it. Or how about the corn that was so wet the neighbor’s grain dryer caught on fire? Once again, not funny. The word fun will not be used to describe the 2009 harvest, or should I call it the 2009-2010 harvest? Last year at this time, soybean harvest was virtually over and about 45 percent of the corn was in the bin. We picked our last field of corn that season in January of this year. This year, about 20 percent of the soybeans and less than 10 percent of the corn has seen a combine. Did I mention that it is raining again?
Joe Zumwalt, Warsaw, Hancock County: This fall and this harvest are proving to be quite temperamental. The weather is not cooperating since it seems to rain almost every other day. Not to mention the fact that many crops don’t want to dry down like normal. Perhaps 30 percent of the corn and soybeans have been harvested in Western Illinois. Yields have been very good, but moisture levels have made it difficult for growers and elevators to dry down the crop. Most elevators have been able to keep up. I haven’t heard of any closures in the area yet, but they are sure to happen. There have been some quality issues, but none in my immediate area. Let’s hope for a very dry November. Ken Reinhardt, Seaton, Mercer County: We had a four-day window for soybean harvest, although some of the later Group III beans were still too wet. I had close to an inch of rain Thursday. I think more than half the crop is not cut. Moisture in soybeans has been a problem for the elevators, too. My semis came home yesterday with fliers stating that producers need to test before we fill trucks. They don’t want more than 15 percent moisture beans, and 16 percent beans will be rejected. My guess on corn harvest is less than 10 percent done. Much corn is still 30 percent plus. Most of the on-farm drying systems around here are useless at 30 percent moisture. Ron Moore, Roseville, Warren County: We did get some soybeans harvested last week before the rains came again on Thursday. We have had another 1 inch and more is forecast for Friday. This fall will turn out to be one of the most frustrating I have been involved with. The beans are just barely dry enough to take to the elevators. Yields seem to be average at best. The low areas where water stood all summer are really pulling the average yield down. The corn is still very high in moisture and not drying down to normal levels for this time of year. Some fertilizer and NH3 are starting to be custom applied. A few farmers have started fall tillage. Jacob Streitmatter, Princeville, Peoria County: The weather finally gave us a couple nice days to get started harvesting soybeans. Monday to Wednesday a lot of soybeans were harvested at anywhere from 13-17 percent moisture. Our soybean yields have been nothing to brag about — somewhere in the lower 40s. Rain on Thursday delayed harvest for a long time. We traded combines this year, and we did not expect to take our machine into the shop late Wednesday for what I think will be serious repairs. So the rain did not bother us too much, plus it’s rained every week all year, why stop when we have soybeans ready? Corn moisture is not coming down. It is 34-36 percent with some reports close to 30. Hopefully, next week I will be able to get more harvested. Tim Green, Wyoming, Stark County: The week started with a little harvest activity. A few beans got cut. Not very many of them were dry, but were cut anyway. A lot of people are putting them in drying bins where they can put air and a little heat on them. Corn is still in that 30-plus range, and some elevators are starting to balk at farmers bringing it in too wet, which I can understand. Thirty-six, 37 percent moisture has been mentioned quite a bit; it doesn’t seem to be drying down very much. People did harvest early-planted corn. Now the corn that is left is wetter, so we are at a standstill. With rain at the end of the week, we will get a little time off to let the dryers catch up. Pick one day and dry for three. We are plugging away hoping to get done some day before the first of the year and the snow flies. Have a safe fall.
Mark Kerber, Chatsworth, Livingston County: I just dumped 3 inches of rain from the gauge. Looks like the rest of the fall will be muddy. We were lucky to get four days of cutting soybeans last week with windy nights where we could start early and run late. Some got done with soybeans, but we had two hours left before rain came. Soybean yields have been good unless white mold was present. Hardly any corn has been started; it is too wet. We did dry one batch of corn in a bin. It took 400 gallons of propane to dry 26 percent corn. Maybe it will dry down as we wait for the ground conditions to get solid. Markets are in an up-trend. Ron Haase, Gilman, Iroquois County: Soybean harvest resumed last week until the rain came on Thursday. I received 2.4 inches, but the rain was still falling Friday. The tiles are running and the ditches are starting to rise. Many soybean fields were harvested, but there are still many soybean fields left to go. We started harvesting some corn to open up some fields. A few others were taking out some corn as well. Hardly any corn has been harvested as everyone was concentrating on soybeans, and the moisture content remains high in corn. The corn I harvested ranged in moisture from 23.6 to 32.3 percent. From what I selected to harvest, the average moisture was 27 percent. This came from fields that were planted before May 12. The drying cost is more than $100 per acre. The discounts were 50 to 60 cents per dry bushel. Handling and harvesting this high-moisture corn crop is going to be challenging and expensive. The Asian ladybugs also were a big nuisance last week. The local closing prices for Oct. 22 were: $3.78 for nearby corn, $3.85 for December corn, and $9.95 for nearby soybeans. Brian Schaumburg, Chenoa, McLean County: After making significant harvest progress, we dumped 3.4 inches of rain on Friday. Depressing. Soybeans are 60 percent and corn 10 percent done in our area when compared to last year. Soybean yields are from the mid-40s (white mold) to the 70s. Corn takes a hit in the low ground, but it is averaging from 200 to 240 bushels per acre. Now, how do we get it out? Corn is $3.85 and $3.97, January; $3.95, fall 2010; soybeans, $9.85, fall and January, $9.48, fall 2010; wheat, $4.88. Steve Ayers, Champaign, Champaign County: Yippee, we got started with soybean harvest last week. Considering the challenging season, we were thrilled with beans in the 50s at 12.4 percent moisture. The rain moved in Thursday afternoon and as of 6 a.m. Friday, we had 1.8 inches. My brother drove home from the St. Louis airport at 11 p.m. Thursday and said the rain came down in sheets the entire trip. We have rain in the forecast for nine of the next 10 days culminating Nov. 1 with morning snow! Think safety! Harry Schirding, Petersburg, Menard County: Rainfall this week, 2.35 inches. Total rainfall for October, 6.68 inches. Normal rainfall for October, 2.6 inches. Fieldwork resumed the weekend of Oct. 17-18 as producers were able to return to corn harvest. With only 10 to 15 percent harvested, most producers are reporting good yields, but moisture levels remain at 21 to 26 percent. Lines at the elevator were long and some loads received large discounts for kernel damage. Soybean harvest stands at nearly 50 percent after three days of harvest last week. Soybean yields are generally above expectations and the quality of the large beans is remarkably good. Producers were able to plant some wheat although not under the most ideal ground conditions. Corn nearby, $3.84, up 29 cents; soybeans nearby, $9.92, up 22 cents; corn for January, $3.81, up 27 cents; soybeans for January, $10, up 17 cents.
FarmWeek Page 7 Monday, October 26, 2009
CROPWATCHERS Wilfred Dittmer, Quincy, Adams County: The sump pumps are at it again after an all-day rain event Thursday yielded another one inch of rain in the gauge. Just when some fields were getting passable, the machines now will be parked for awhile. A few have been working since last weekend (Oct. 17-18) in beans and a little corn came out as well, but I doubt if 10 percent is in the bin around here. Virtually no other fieldwork is being accomplished, either. On the plus side, the temps did come up to a more seasonable level. We did have a good crop of the Asian lady beetles for a couple days. What a nuisance they were. Have a safe week wherever you are. Tom Ritter, Blue Mound, Macon County: Farmers had a good run on harvest earlier in the week. Tremendous amount of soybeans were harvested in three to three and a half days, but that came to an end at noon Thursday when rain set in. I’m not optimistic on a lot of harvest with the forecast scheduling rain every other day for several days. Farmers did, however, accomplish more in the three and a half days last week than they had in the three and a half weeks proceeding. Still far less than 50 percent of the beans in the area have been harvested and corn harvest remains well below 25 percent. Moisture in corn still does not seem to be coming down, at least not at a very rapid rate. The wet corn will create major problems on the farm as well as at the elevator. Todd Easton, Charleston, Coles County: As baseball legend Yogi Berra used to say, “It’s deja vu all over again.” And it was last week as rain showers came into the area Thursday stopping harvest progress. Producers started harvesting cornfields last weekend (Oct. 1718). On Monday (Oct. 19), most switched to beans and took out a very large part of that crop ahead of the rain. Soybeans were finally coming in at acceptable moisture levels with yields all over the board. If we could just get a handful of good days, farmers could wrap up the bean harvest. Hopefully, those will come soon. Corn harvest has been on and off again all season, yielding to the bean harvest whenever that has been possible. Corn moistures were still in the 20 to 25 percent range, forcing elevators to curtail wet corn deliveries at times to catch up on drying. I’m afraid this will be an ongoing inconvenience throughout corn harvesting as combine capacity has well outpaced drying capacity over the last few years. Jimmy Ayers, Rochester, Sangamon County: As of Friday morning, we had received 2.3 inches of rain. Around the area, it ranged from 2 inches to 3.25 inches. The creeks are running full. A lot of guys went to the field last week for the first time. We got about 30 percent of our beans out and still haven’t started on corn. Got one field down to 20 percent moisture that we would probably start on if we get the opportunity. We still have some pretty high moistures in corn. A reminder: Clean your combines off. A leaf blower works real well and takes a lot of dust and dirt off in a hurry. The elevators are up against their driers. They keep filling up with wet corn. It seems like they can’t hardly keep up and yet the next morning they are usually open and ready to go for another round. Many of us have put up bins to handle the storage problems, but now we are ending up with dryers being our bottleneck. Looking forward to some colder temperatures. Doug Uphoff, Shelbyville, Shelby County: It’s officially wet, soggy, soaked up — whatever you want to call it — wet. We did manage to get 70 percent of our beans cut. All of the beans that were ready were cut. I would say most in the area were cut. Corn picking is coming along. Moisture levels have fallen three or four points in the last week. We are probably 20 to 30 percent done with corn. We could stand to miss a rain event. We have water standing in all the ponds now, so hopefully it will dry out this week and we won’t have to worry about freezing weather to get the rest of this crop put away. Be careful out there.
David Schaal, St. Peter, Fayette County: We received a strong 1.5 inches of rain on Thursday. That was the rain that nobody around here wanted or needed. Soybean harvesting got started last week, but a lot of the beans never got totally dry. With the beans barely mature and only a couple of days of sunshine, the moisture just didn’t come out of them. Doesn’t look like there will be a lot of wheat sowed in the area. We’re hoping for sunshine and dry weather. The markets have rallied a little bit with corn coming in at $3.84, soybeans at $10, and wheat at $4.68. Dan Meinhart, Montrose, Jasper County: Corn and soybean harvest and silage chopping were under way the first part of the week where crop and ground conditions permitted. A light frost on Sunday morning (Oct. 18) burned the top leaves of the soybeans and some of the corn, but it was not a killing frost. Rains began again on Thursday. Our gauge showed 1.5 inches of rain by Friday morning. Corn moisture is running very high. Good yields are being reported on the early-harvested crops. The yields on the late-planted crops in areas where it did not get rain during August and September are questionable. Wheat planting is virtually over due to the wet soil conditions and lateness of the season. Very little wheat was planted. More rains are expected this week. Bob Biehl, Belleville, St. Clair County: Another 2.3 inches of rain kept the “rice patties” full and saturated. We did have a bonus week, though. We had two days of corn shelling and two days of bean combining. Corn planted before Memorial Day had moistures of 21-23 percent and we did shell some 110-day corn planted June 6 that was 27-28 percent moisture. Bean combining went well last Tuesday, but Wednesday it was a little raggedy with no sunshine all day. The next day it was raining. Yields have been right around 50 on beans planted mid-June. I guess we will have to switch to corn again after the rain and mud it out for a couple of days. Oh, I forgot the biggest bonus of all — we had one day (Wednesday) to sow some wheat, and we got 75 acres out. We haven’t put on any fertilizer yet. We can put that on at a later date. Ted Kuebrich, Jerseyville, Jersey County: Farmers in Jersey County got with it in the good weather at the first part of last week. It was Sunday (Oct. 18) before the ground dried out enough to be able to run the combine out in the fields. The beans that got frosted look like they were ripe but moisture was running 18 to 20 percent. On Thursday it started to rain and it rained all day and night. Friday morning at 4:30 it had rained 3 inches and it was still raining. Prices at Jersey County Grain, Hardin: October corn, $3.79; January corn, $3.95; June 2010 corn, $4.16; October beans, $10.07; January beans, $10.20; June 2010 beans, $9.77.
Rick Corners, Centralia, Jefferson County: Another 1 inch of rain and it was still coming down Friday. A few more started cutting soybeans last week until the rains hit. As the later-planted and maturing beans are being cut, the yields are going down. The frost last weekend (Oct. 1718) fried some of the doublecrops and the later-planted singles. Seems as if nobody wanted to buy our wheat this past summer. We’ll see how they like it next year when there isn’t any to buy. Kevin Raber, Browns, Wabash County: There were several days of harvesting this past week. The rain came Thursday evening and it was supposed to stay through Friday. The corn is standing well with good yields, but the moisture is not going down very quickly. Early soybean yields are good. The ground is still too wet to sow wheat. Dean Shields, Murphysboro, Jackson County: After having Monday, Tuesday, and Wednesday as good days for harvesting, along came the rain on Thursday all day and on Friday morning, I had 1.8 inches in the gauge. So we are wet again. It looks as if we are going to mud things out for awhile. Harvest is progressing slowly. There is still a lot of corn and beans in the field. Down here in Jackson County, we are behind like those in the rest of the state. Yields seem to be pretty good for the most part, except for, as reported earlier, the wet holes. Places like that bring the yield down as a whole for the field. We are still harvesting when we can and things have been going fairly decently for most folks. I haven’t heard of any big troubles. There is a little bit of disease in the corn, and we have been having some quality problems with that. The beans have been coming along pretty well. We got a little bit of wheat sowed. I don’t know if we will get much more sowed until it dries up a bit. Everyone have a safe harvest. Ken Taake, Ullin, Pulaski County: It was still drizzling Friday morning as I called in this report. We had a pretty decent open week until Thursday morning when the rain started. We had about 0.7 of an inch Thursday and Thursday night. It was supposed to clear off for the weekend. It looks like it may be this week before we get back in the field. Fields remain pretty saturated. We’ve been fortunate — we’ve not rutted things up too much. But we definitely had to leave the trucks on the road and buggy everything out to them. On our farm, we are about half done with our corn harvest and about a third done with our soybean harvest. We finally did shell a little bit of corn that was drier than 20 percent. Seems like everything is going to have to go through the dryer this fall for sure.
Reports received Friday morning.
South American crop production projected to rise The planting season reportedly is off to a good start in South America and early indications suggest crop production there could bounce back in a big way after poor yields this year. The Buenos Aires Cereals Exchange last week projected Argentine farmers will surpass the previous record for soybean plantings by 7 percent. Meanwhile, corn and soy crops in South America are expected to get a boost from favorable weather conditions produced from a mild El Nino. “It’s going to be a much, much bigger crop” if the weather continues to be good, said Michael Cordonnier, president of Corn and Soybean Advisor Inc., during a webinar hosted by the CME Group in Chicago. Cordonnier said corn and soybean production in South America took a big hit this year due to a
credit crunch, which forced farmers to use less fertilizer. The situation was compounded by dry conditions that sapped crop potential. However, 2009/10 soybean production in South America could grow by more than 30 percent, according to Cordonnier. Robert Wisner, ag economist at Iowa State University, recently projected South American crop production in 2009/10 compared to 2008/09 could increase by 848 million bushels for soybeans and 94 million bushels for corn. Wisner and Cordonnier predicted South America, as a result, in the coming year could reemerge as a major competitor of U.S. crop exports in the world market. A large soybean crop in South America in coming months also could put downward pressure on prices and possibly affect the spring 2010 planting mix in the U.S.
FarmWeek Page 8 Monday, October 26, 2009
PRODUCTION
Harvest delays may linger as weather remains ‘unsettled’ BY DANIEL GRANT FarmWeek
Illinois farmers early last week finally received a stretch of warm, breezy conditions, albeit a short one, to dry the crops and briefly shift harvest activity into high gear. Yield reports generally were good, although test weights were lower than normal, as many farmers the first half of last week worked “real late into the night,” according to Bryce
Anderson, DTN meteorologist. The majority of the crops in the state as of the first of last week were mature (79 percent of the corn crop was mature and 93 percent of soybeans were shedding leaves) but farmers had harvested just 11 percent of corn and 13 percent of soybeans compared to the averages of 68 percent and 79 percent, respectively. “Farmers should take advantage of each minute pos-
sible because conditions are going to turn unfavorable again,” Anderson said prior to the rainfall late in the week. Rainfall totals ranged from less than an inch to more than 3 inches. Anderson predicted the “unsettled” weather pattern likely would last at least through the rest of this month, which means cool conditions and periods of rain are expected to continue. “This is not going to be a real favorable scenario,”
Anderson said. “Obviously, harvest is going to run pretty late.” Harvest conditions could improve next month, although temperatures likely will get even colder, Anderson said. Meanwhile, farmers who continue to struggle with patches of moldy corn should take extra precautions when harvesting and storing the damaged grain, according to Richard Stroshine, a professor in the department of agricultural
and biological engineering at Purdue University. “Farmers are going to have to take extra precaution in storing and drying down their grain this year,” Stroshine said. He recommended farmers who have moldy corn adjust their combines to remove as many of the fine particles as possible; dry the grain down to 14 to 15 percent moisture; and try to segregate the damaged grain from the good corn for handling, storage, and marketing purposes.
Input prices could be influenced by what happens this fall David Asbridge, president and senior economist for NPK Fertilizer Advisory Service in Chesterfield, Mo., believes operating costs to plant corn in 2010 will decline by about 3 percent. His projection is based on an estimated 11.7 percent decline in fertilizer costs and a 5.7 percent drop in chemical costs. However, Asbridge told FarmWeek at the American
FarmWeekNow.com Listen to David Asbridge’s comments about the prospect for lower input costs in 2010 at FarmWeekNow.com.
Farm Bureau Federation Commodity Outlook Conference in Albuquerque, N.M., the situation could change based on what happens this fall. Another poor fall fertilization season could put pressure on fertilizer supplies and prices next spring, according to the economist. “Right now, it looks like it
‘I don’t think farmers will have a lot of chances to put down much (fall) ammonia.’ — David Asbridge NPK Fertilizer Advisory Service
will be a bad fall like last year,” Asbridge said. “I don’t think farmers will have a lot of chances to put down much ammonia (due to wet conditions and an extended harvest season).” Asbridge projected nitrogen prices could increase prior to next spring, although not anywhere near the record-high levels experienced in the past year. A poor fall fertilization season also could wreak havoc on supplies next spring and put more pressure on prices for urea and urea ammonium nitrate (UAN), he said. Asbridge suggested farmers who have the opportunity may want to start pricing nitrogen for next spring. Those looking
to purchase potash may want to wait, though, because he believes potash prices will continue a downward trend. On the flipside, seed prices were projected to continue an upward trend. Asbridge estimated seed costs for 2010 will increase by 9.6 percent for corn and 11.9 percent for soybeans. “With the growth of biotechnology, we’ve seen a pretty good increase in seed costs,” he said. “I think it will continue.” (See graph) Farmers in some regions of the country may plant more corn and beans next year because of reduced winter wheat plantings. Just 13 percent of the winter wheat crop was planted in Illinois as of last week com-
pared to the average of 67 percent. Fuel costs also were projected to increase next year by 4.7 percent for corn and
8.5 percent for beans. But energy-related prices in coming months shouldn’t be much higher than current levels. Asbridge predicted oil prices would remain around $75 per barrel or lower (oil prices last week climbed into the low-$80 range for the first time in a year). Natural gas prices also could creep up in coming months, but Asbridge sees no indication of a major jump in that market. — Daniel Grant
AYRSHIRE EDUCATION
At right: Ernie Birchmeier, livestock and dairy specialist with the Michigan Farm Bureau, looks on as Janet Jarratt of Albuquerque, N.M., owner of the nation’s largest Ayrshire dairy herd, explains her operation to those attending a tour held during last week’s American Farm Bureau Federation Commodity Conference in Albuquerque. The Jarratts milk 300 cows on their 350-acre farm. One innovation at the farm is a small methane digester, the effluent from which is diverted from the dry lot and treated in a large steel tank. The treated effluent supplies a man-made wetland constructed mainly with bulrushes. Methane from the digester eventually may be used to produce electricity for the operation. (Photos by Jim Fraley)
FarmWeek Page 9 Monday, October 26, 2009
TRANSPORTATION
Shippers take rail fuel concerns to courts, Congress BY MARTIN ROSS FarmWeek
Rail customers are asking the courts and Congress to address concerns about potentially inflated railroad fuel charges that add to the costs of transporting crops. A new Soy Transportation Coalition report estimated soy product shippers incurred $120 million in “potentially excessive rail rates” in 2007 alone. Consumers United for Rail Equity Executive Director Bob Szabo cited concerns that major freight carriers in recent years have recalculated fuel
surcharges, thus overcharging for energy costs. Surcharges are at the heart of a pending class action suit
against top carriers currently in the Washington federal district court. Rail users charge carriers with over-
charging for fuel in contract shipments that moved between 2003 and 2008, to the purported tune of $6.5 billion to $7 billion. Shippers brought their concerns before the regulatory U.S. Surface Transportation Board (STB) in 20042005 to little avail. “Fuel surcharges have been a problem for a long time, for all customers,” Szabo told FarmWeek. “Shippers by and large have no problem with paying for actual increases in the price of fuel. They have a lot of problem with paying more. “Shippers believe — and
New STB chairman ‘committed’ to change? The new head of the federal Surface Transportation Board (STB) appears to have the will to improve the rail regulator’s image and “transparency” — with some potential direction from Congress. Bob Szabo, executive director with Washingtonbased Consumers United for Rail Equity, noted complaints especially among shippers that the STB has been “too passive, and, when it does Daniel Elliott III roll into action, too pro-railroad.” But new STB Chairman Daniel Elliott III has announced the board would begin to hold public oral arguments to enable parties in rail disputes to provide input before STB commissioners make a decision. The “public forum” process, similar to oral arguments in federal appellate courts, should help “demystify the process,” Elliott said. After discussions with the new chairman, Szabo concluded Elliott is “committed to making (the STB) more proactive.” Anticipated STB reforms spearheaded by Senate Commerce Chairman Jay Rocke-
feller (D-W.Va.), whose committee confirmed Elliott, would provide “the means and the powers by which the STB would become more proactive,” Szabo told Far mWeek. Rockefeller charges many shippers have little ability to negotiate with carriers over terms because freight is “captive” to a single rail line. He favors the STB giving more weight to shipper rate and service complaints and expanding the agency’s staff. “Rockefeller’s been angry about the captive rail issue the entire 25 years he’s been in the Senate,” Szabo said. “(Rockefeller’s) committed to fixing the problem. The STB’s first oral arguments, scheduled this week, involve Entergy Arkansas Inc./Entergy Services Inc. vs. Union Pacific Railroad and Missouri and Northern Arkansas Railroad Co. — a dispute surrounding Western coal shipped to Entergy’s Northeast Arkansas power plant. Elliott said he plans to review other STB policies, as well, to ensure they’re as “inclusive and open” as possible. The STB has created a new Rail Customer and Public Assistance Program page on its website to enable customers to quickly report problems with rail service. — Martin Ross
Remember: Fall back, stay alert Sunday’s time change means it will get dark about 5:30 p.m. in the most of state. That is another reason for farmers to be careful when moving equipment on rural roads and highways during this long-delayed har vest season. “A lot of farmwork is going to be done in the dark this year,” said Illinois Farm Bureau President Philip Nelson, who said he has yet to harvest the first acre of corn on his LaSalle County farm. Farmers should be sure equipment has proper safety markings and working lights to aler t other drivers. The time change officially takes effect at 2 a.m. Sunday, when clocks are turned back one hour.
there’s evidence to suggest — that the railroads quit competing for rail business in 2003. “They were said at that time to have market power over their customers, and they
ing fuel cost increases. Since then, Szabo said, the STB has “done nothing” to ensure repayment of overcharges to non-contract shippers. And while the STB oversees non-contracted
‘Shippers by and large have no problem with paying for actual increases in the price of fuel. They have a lot of problem with paying more.’ — Bob Szabo Consumers United for Rail Equity
started a number of things to crank up rates.” In mid-2006, the Senate Commerce Committee conducted a hearing on the issue. Presiding Sen. Trent Lott (R-Miss.) pledged congressional repercussions “if I find out railroads are using fuel surcharges to make money off shippers.” In January 2007, the STB concluded carriers had computed fuel surcharges as a percentage of base freight rates, in some cases “double dipping” — applying both surcharges and rate increases that also included a “fuel cost component.” It imposed surcharge reporting requirements for Class I carriers but prescribed no index for measur-
“tariff ” traffic, it has no jurisdiction over contract shipments. Because STB-regulated traffic is exempt from federal antitrust review, class action attorneys have sought damages related solely to contract-related overcharges between 2003 and 2008, under antitrust statutes. The U.S. House Judiciary Committee, meanwhile, proposes eliminating rail antitrust exemptions — a Senate measure is on hold for inclusion in a comprehensive rail reform bill. Carriers have unsuccessfully sought inclusion of provisions that would protect them in ongoing lawsuits, Szabo reported.
FarmWeek Page 10 Monday, October 26, 2009
EMERGING ISSUES
Community colleges see record enrollment boom
BEFORE THE RAIN
BY KAY SHIPMAN FarmWeek
John Wood Community College saw a record 14 percent increase in full-time equivalency (FTE) students on its Quincy campus this fall. Statewide, community colleges reported an all-time record number of 223,353 FTE students, a statewide increase of 9.5 percent, according to recently released data from the Illinois Community College Board. To calculate FTE students, a community college divides the total number of students’ credit hours by 15, the number of semester hours considered a full-time class load. That data have been reported since 1965. Not only are community college students taking more classes this year, but there are more students overall. Enrollment of all students, both full-time and part-time, reached 380,000 — a 27-year record high and a 6.4 percent increase over the fall 2008 enrollment. “As long as the economy stays flat or worse and jobs are in flux, the (enrollment) trend may not be as dramatic, but it will continue,” said Steve Morse with the Illinois Community College Board. John Letts, vice president for student services at John Wood, speculated the economy is driving enrollment increases at his college. Many unemployed workers are taking classes to be retrained for another career, Letts said. In addition, the poor economy also is increasing the number of traditional students earning their first college credits. “Community colleges offer a reasonably priced alternative” for a college education, Letts said. Letts noted the number of student veterans also has increased as those students take advantage of the new GI bill. Nearly all of the 48 community colleges in the state reported increases in FTE students. Of those, 25 saw double-digit increases this fall compared with last year. Those increases range from 29.4 percent at McHenry County College, Crystal Lake, to 11.3 percent at College of Lake County, Grayslake. Nineteen community colleges experienced double-digit enrollment increases in full- and part-time students. John Wood has handled the influx of students because the administration planned ahead and hired additional part-time faculty after fall enrollment numbers started climbing in late March and early April, Letts explained. Colleges are doing their best to meet students’ needs, but increased numbers of students are straining the institutions’ budgets during difficult financial times, Morse noted. “It’s ironic when demand is the greatest, the funding tends to not be there,” Morse said. The full fall enrollment report is available online at {www.iccb.org}.
Equine board names directors Marcy Heepke, Edwardsville; Lori Nelson, Mechanicsburg; and Peter Veit, Naperville, were named directors for the Illinois Equine Industry Research and Promotion Board, according to Karen Freese, board chairman. Heepke will represent the pleasure horse industry in the southern region. She owns Triangle H Farm, a riding, training, boarding, and education facility. Nelson will represent the show horse industry in the central region. She owns and operates Lori Nelson Training at Stoney Creek Farm and offers training, clinics, lessons, and boarding. Veit will represent the trail
and pleasure industry in the northern region. He has been involved in the horse industry for more than 30 years as an owner and participant in fox hunting, trail riding, horse camping, and showing. Retiring from the board are Penny Boyer, Southern Illinois, working horses; Lois Guyon, Northern Illinois, pleasure horses; and Steve Hollewell, Northern Illinois, show horses. Applications are being accepted for director seats that expire in 2010. Application forms are available online at {www.HorsemensCouncil.org} or by requesting them from the Equine Promotion Board, 3085 Stevenson Drive, Suite 305, Springfield, Ill., 62703.
Prior to late-week rains, combines were in fields in many parts of Illinois last week. This one, east of Bloomington with wind turbines in the background, actually was combining soybeans. The telephoto lens creates an optical illusion that makes it appear the machine is in the cornfield in the foreground. Rain throughout the state brought a halt to the first continuous string of days farmers had to get into the fields this season. Harvest of corn statewide was at 11 percent completed and soybeans at 13 percent completed as last week began, well behind the average of last year. Some farmers, particularly those in the northern half of the state, had yet to harvest their first acre of corn. (Photo by Ken Kashian)
Show pig tests positive for H1N1
Vilsack: ‘U.S. pork is safe to eat’ Ag Secretary Tom Vilsack last week again stressed that “pork is safe to eat” after USDA confirmed the presence of the H1N1 flu in a sample from a show pig. The sample that tested positive for H1N1 was collected during the Minnesota State Fair and submitted to USDA by the University of Minnesota. Officials speculated the pig, which showed no sign of illness, contracted the virus from some of the nearly 1.8 million people who attended the fair. It is the first finding of the novel H1N1 virus in a U.S. pig. The virus previously was confirmed in swine samples in Argentina and Canada. The infection of the fair pig does not suggest infection of the commercial herd because show pigs and commercially raised pigs are in separate segments of the swine industry that typically do not interchange personnel or animal stock, according to USDA. Vilsack said he hopes the
finding doesn’t diminish U.S. pork exports, which are vital to the struggling industry. “We have fully engaged our trading partners to remind them that several international organizations, including the World Organization for Animal Health, have advised that there is no scientific basis to restrict trade in pork and pork products,” Vilsack said. “People cannot get this flu from eating pork or pork products.” A number of countries, including China and Russia, banned imports of U.S. pork this spring when H1N1 was confirmed in the U.S. Most of the trade restrictions were lifted prior to the recent finding. Meanwhile, the National Pork Producers Council urged pork producers to tighten existing biosecurity protocols, such as restricting public access to barns, to protect their pigs from the virus. Pork producers who want more information about dealing with H1N1 flu were
Equestrian Lifestyle Expo names speaker Mary Midkiff, an award-winning author and international trainer from Louisville, Ky., will be among the industry leaders to speak at the Equestrian Lifestyle Expo and Holiday Market, Nov. 21-22, at the Lake County Fairgrounds, Grayslake. The event is coordinated by the Horsemen’s Council of Illinois. In addition to speakers, the expo will offer equestrian equipment, feed, and services for current horse owners and those who want to own or ride a horse. One-day tickets are $8; two-day, $14. They may be purchased online with a credit card or at the door with cash only. More information is available online at {www.HorsemensCouncil.org} or by calling toll free 1-866384-9161.
advised to visit the website {www.pork.org}. Elsewhere, the Canadian Food Inspection Agency last week confirmed a flock of turkeys in a single barn in Ontario had the H1N1 virus. The only symptom in the infected Canadian flock was a decrease in egg production. There was no illness or mortality of the turkeys associated with the virus.
Notice of Annual Meeting Illinois Agricultural Association Notice is hereby given that the annual meeting of the members of the Illinois Agricultural Association will be held in the Hyatt Regency Hotel, 151 East Wacker Drive, Chicago, Illinois 60601, on Saturday, December 5, Sunday, December 6, Monday, December 7, and Tuesday, December 8, 2009 with the official meeting of voting delegates convening at 8:00 a.m. on Monday, December 7, for the following purposes: To receive, consider and, if approved, ratify and confirm the reports of the officers and the acts and proceedings of the Board of Directors and officers in furtherance of the matters therein set forth since the last annual meeting of the Association. To elect nine (9) members of the Board of Directors to serve for a term of two years. To elect a President and a Vice President, who shall also serve as directors, for a term of two years. To consider and act upon such proposed amendments to the Articles of Incorporation or to the Bylaws of the Illinois Agricultural Association and upon such policy resolutions as may be properly submitted. For the transaction of such other business as may properly come before the meeting. James M. Jacobs Secretary
FarmWeek Page 11 Monday, October 26, 2009
CARBON TRADING
Delta Institute, state climate initiative finding niches BY KAY SHIPMAN FarmWeek
The Delta Institute and the Illinois Conservation and Climate Initiative (ICCI) are finding markets for stored carbon credits in spite of future market uncertainties. “We’re going to stay out there and keep innovating, because we think it’s best for everybody,” Ryan Anderson of the Delta Institute told FarmWeek. Anderson said Delta continues to enroll landowners in the carbon sequestration program and to field inquiries from others who are interested in the program. Meanwhile, AgraGate Climate Credits Corp., a subsidiary of the Iowa Farm Bureau Federation, has suspended enrollments (see accompanying article). Under ICCI, farmers are paid for storing carbon in soil, trees, and grass, thus reducing the level of carbon dioxide going into the atmosphere. Illinois launched its program in 2006. The sixth trading pool of credits is small and has remained open as a courtesy to farmers who are busy with harvest, Anderson said. Anderson acknowledged the carbon credit market is changing and prices have plummeted from $7 per ton 18 months ago down to 10 cents a ton recently. Buyer interest is shifting to carbon stored in managed forest land, according to Anderson. Likewise, Delta Institute
New Holland launches bale ID New Holland Agriculture has launched a new product system, CropID, that identifies individual large, square hay bales via microchips. Using radio frequency technology, CropID collects detailed information about a bale and stores it in a microchip attached to the twine. The system works by encasing a microchip and its antenna in a tag that’s wrapped around the twine when a bale is tied. A precision information processor stores information about a bale, including an identification number, a field number or name, the date and time of baling, the bale weight, the high and average moisture content, and the amount of preservative applied, if any. A hand-held scanner reads bale tag information, while a loader-mounted scanner is capable of reading three bale tags at a time from up to 10 feet away.
has seen increased interest in carbon credit trading by landowners who have existing woodlands, he added. Delta Institute envisions woodland carbon trading as an economic development tool for rural areas and providing landowners with conservation incentives, Anderson explained. Another change in the carbon market has been growing interest in what farmers would call an identity-preserved product. Aggregators are going through brokers seeking specific types of carbon credits or carbon stored in specific locations, according to Anderson. “We’re able to sell credits
because we can differentiate ourselves. We segregate credits out,” Anderson said. Delta is able to identify not only the types of carbon stored, such as in trees or soil, and the locations, but also the year, known in the
market as “vintage.” For example, a call may come for 100,000 tons of vintage 2006-2008 credits and all the credits would sell at once, Anderson explained. “Soil (credits) range from 20 cents a ton, and we got some
out at $2 a ton,” he said. Delta Institute plans to continue adapting to a changing carbon credit market. “It’s positioning us well going forward,” Anderson said. “We can move quickly depending on where the market goes.”
Iowa carbon program not signing new contracts Iowa-based AgraGate Climate Credits Corp., an aggregator of carbon credits, is not signing new contracts but continues to serve 4,000 active ones, including some in Illinois, the chief science officer told FarmWeek. “It makes no sense to ask farmers to sign new commitments,” said Miller, a farmer who organized the program for the Iowa Farm Bureau Federation (IFBF). AgraGate is a subsidiary of IFBF. Prices for carbon credits traded on the
Chicago Climate Exchange have collapsed because buyers are uncertain about pending congressional legislation that may affect the market. AgraGate stopped signing new contracts in June, Miller said. “Our focus is on serving the 4,000 active contracts,” Miller said. “We’re still around and doing everything we’ve been doing.” There will be no new contracts “until we get more clarity from the federal government,” he added. — Kay Shipman
FarmWeek Page 12 Monday, October 26, 2009
AROUND THE STATE LOTS OF PUMPKIN PIES HERE
Illinois’ green economy strong in finance, industry BY KAY SHIPMAN FarmWeek
Harry Stuenkel, left, and Don Zeldenrust admire the 626-pound pumpkin grown by Roger Freeman that took first place in this year’s Cook County Farm Bureau Giant Pumpkin Contest. Perhaps indicative of the weather this year, the winning pumpkin in 2009 was considerably smaller than the previous winners in 2007 and 2008. Those topped the scales at 661 pounds and 820.5 pounds, respectively. (Photo courtesy of Cook County Farm Bureau)
Illinois has green economic muscles in the finance and industrial sectors, according to a recent green economic profile by the National Governors Association (NGA). However, the report’s economic data did not include feedstock-based biofuels or sustainable agriculture production. “It’s (green economy) a complex topic. There is no one definition of green, and states are grappling with that,” Sue Gander with NGA’s Center for Best Practices told FarmWeek. Gander, director of the energy, environment, and natural resources division, emphasized the center developed state green economy profiles as a starting point for discussions and strategic planning. Each profile divides a state’s green economy into 15 segments, such as finance and transportation, and focuses on businesses that provide alternatives to carbon-based energy sources, conserve energy and natural resources, and reduce pollution and recycle waste. Collaborative Economics, the California-based consulting firm that prepared the profiles, didn’t include data related to feedstock-based biofuels because of the food vs. fuel controversy, explained Tracey Grose, the firm’s vice president of research and strategic development. Illinois’ green economy is populated with diverse businesses, according to the profile. One of the state’s strongest green sectors is finance and investment, which includes emission trading, venture capital, and project financing. The profile also noted the state has a competitive advantage in its green manufacturing and industrial and transportation sectors, the latter of which includes motor vehicles and equipment. The report suggested deeper analysis of the state’s leading green sectors could highlight areas of specialization and indicate promising areas for development and growth. For example, much of California’s solar industry came from its semiconductor industry because the technologies are closely related, the report noted. Illinois also has notable venture capital investment in clean technology. In 2008, Illinois had nearly $87 million invested in clean technology, ranking eighth in the nation. In addition, nearly 85 green technology patents were registered in Illinois between 2006 and 2008. “We’re trying to emphasize that green economies are complex, and there are multiple players. It’s not just industry or development,” Gander said. “We’re working to connect workforce and economic development with the environmental sector and encouraging them to work with the universities.” “The challenge is to tie it together,” Gander summarized.
Saline/Gallatin AITC raises $3,000 in golf scramble BY DAVE MEEKER
The Saline/Gallatin Farm Bureau Foundation and Ag in the Classroom (AITC) program raised $3,000 in a recent golf scramble at the Saline County Golf and Country Club in Eldorado. Twelve teams took part in the scramble, which was won by the Country Financial team of Kevin Sherwood, Eric Brannock, Joe Tison, and Mark Goldman. The winners received $75 per person plus a plaque. Members of the second-place team, Gallatin County Young Leaders Joe Raben, Kyle Drone, Matt Duffy, and John Neuman, each received $40 plus a plaque. Funds for the program stay in the Saline and Gallatin County areas. The money is used for scholarships, teacher training, conferences for teachers, and funding for in-class AITC programs in all schools in the two counties. “The Saline/Gallatin Foundation would like to thank all the sponsors and volunteers who made the event possible. Official thank yous will be published in local publications,” said Dave Meeker, manager of the county Farm Bureaus in both counties. Dave Meeker is manager of Saline and Gallatin County Farm Bureaus. He can be reached at 618-272-3531 (Gallatin) or 618-2526992 (Saline).
FarmWeek Page 13 Monday, October 26, 2009
FROM THE COUNTIES
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OOK — The annual member appreciation banquet will begin at 5:30 p.m. Wednesday, Nov. 4, at the Cotillion, Palatine, with a silent auction and appetizers. Proceeds from the silent auction will benefit scholarships, internships, and Ag in the Classroom program. Dinner choices are pork, chicken, or pasta. Frank Pisani will provide the entertainment. Cost is $12. Call the Farm Bureau office at 708-354-3276 for reservations or more information. UMBERLAND — Seats are available for the Nov. 11 bus trip to Chicago. Call the Farm Bureau office at 849-3031 by Tuesday for reservations or more information. ENRY — Bureau, Henry, Knox, and Stark County Farm Bureaus, the University of Illinois Extension, and Black Hawk East (BHE) will sponsor a series of three equine seminars from 6:30 to 8:30 p.m. Thursdays, Nov. 5, 12, and 19, in the Black Hawk East ag arena. There is no charge for 4H and FFA members. Cost for others is $9 per session or $20 for all three sessions. Call the Farm Bureau office at 309937-2411 for reservations or more information. ANE — Farmers can bring their crop to five grain elevators in and around Kane County to be able to donate to Kane County Farm Bureau’s Harvest for ALL program. Pledge forms to donate a portion of the proceeds to a Kane County food pantry of their choice will be available at participating elevators. Call the Farm Bureau office at 630584-8660 or visit the website {www.kanecfb.com} for elevator locations. ASALLE — Wendy Sanders, optometrist, has joined the LaSalle County Farm Bureau discount program. She will offer a 15 percent discount on goods and vision-related services. It cannot be combined with health insurance. Dr. Sanders is located at 641 First St., LaSalle. Call the Farm Bureau office at 433-0371 for 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. Care packages also will be sent to troops for Christmas. Call the Farm Bureau office at 815842-1103 for items needed.
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Deadline to send or bring contributions is Tuesday, Nov. 3. EORIA — A health clinic will be Wednesday at the Farm Bureau auditorium. Call the Farm Bureau office at 686-7070 for an appointment for tetanus and pneumonia vaccines. Flu vaccine reservations are full. • Dr. Donald Crane will give a presentation on health care reform at 1 p.m., Wednesday, Nov. 4, at the Farm Bureau auditorium. Call the Farm Bureau office for more information. • The annual meeting will be at 5 p.m. Saturday, Nov. 14, at the Dunlap High School. Tickets are $10 and must be purchased by Wednesday, Nov. 4. OCK ISLAND — The Rock Island County Farm Bureau Foundation
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will sponsor its Harvest Gala fundraiser at 6 p.m. Friday, Nov. 6, at the iWireless Center, Moline. Darryl and Karen Anderson will present the program on their experience with Agriculture in the Classroom. Silent and live auctions will be held. Donated items for the auctions will be accepted. Tickets are $50 per person, which includes reserved parking, and must be purchased by Thursday. Call the Farm Bureau office at 309-736-7432 for reservations or more information. CHUYLER — The Schuyler County Extension will sponsor a wildlife nuisance control seminar at 3 p.m. Thursday at its office, Rushville. Call the office at 217-322-3381 for reservations or more information.
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TEPHENSON — Flu shots will be available from 7 to 9:30 a.m. and from 3 to 5 p.m. Wednesday, Nov. 4, at the Farm Bureau office. Cost is $20 for members and $25 for non-members. • A hearing screening will be from 7 to 9:30 a.m. and from 3 to 5 p.m. Wednesday, Nov. 4, at the Farm Bureau office. Advanced Hearing Healthcare will offer members a free ear exam, hearing screening, and consultation. No appointments are necessary. • A defensive driving course will be from 10 a.m. to 3 p.m. Tuesday and Wednesday, Nov. 17-18, at the Farm Bureau office. Doug Sommer will be the instructor. Cost is $15 for members and $20 for nonmembers. Lunch will be pro-
vided. Call the Farm Bureau office at 815-232-3186 for reservations or more information. ERMILION — The Vermilion County Farm Bureau Foundation will sponsor its annual silent auction during the annual meeting on Nov. 23. Current items include an Illini basketball signed by Coach Bruce Weber, an Americana comforter set, and a set of desserts prepared by Sheila Lane. If you have an item to donate, call the Farm Bureau office at 217-442-8713 so items may be publicized prior to the auction.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county manager.
FarmWeek Page 14 Monday, October 26, 2009
PROFITABILITY Outlook for food needs
World will produce another China by 2030 BY ROD WELLS
At the beginning of October, I had an opportunity to hear someone speak on the growing world population and the continued need for increased food productivity. It wasn’t the first time I had seen a presentation Rod Wells on this topic, but it held my interest like no other time before. I don’t know why; maybe it was out of some hidden desire
to turn the page on the very challenging season we’ve faced in agriculture, maybe the speaker presented the information in a better format, or perhaps it was another reason that I don’t recognize. Updated growth rates indicate the world population will grow from today’s 6.8 billion to almost 8.2 billion by 2030. This is the equivalent of adding another China to the world’s population in 20 years. By 2050, the population number is expected to reach almost 9.3 billion. This means that by 2040, the pro-
duction of crops worldwide will need to double. Put another way, by some estimates, we will need to produce more food in the next 50 years than has been grown in the last 10,000 years! That is almost an incomprehensible number. The U.S. farmer will need to produce 55 percent of the world’s corn and 45 percent of the world’s soybeans to meet these future needs, according to the speaker. What an awesome responsibility all of us in agriculture have to meet these production needs. Today, the expanding world
population has cut the grain land area per person to about l/4 acre — the size of a typical suburban yard. It is interesting to note the higher productivity per unit of land has been achieved by using 30 percent less energy than just a decade ago. As has been stated many times, U.S. farmers are truly environmentalists. At the end of the day, perhaps the reason the talk resonated with me so much this time is that it is easy to get caught up in the day-to-day activities we all face. We worry about fertilizer
costs, late harvest, ear rots, high crop protection prices, falling grain prices, and on and on. These things must certainly be managed, but from time to time it does us good to refocus on the longer-term outlook. And while that outlook provides challenges for all of us involved in this crazy business, it looks pretty darn positive for our industry from where I sit. Rod Wells is GROWMARK’s director of agronomy sales and operations. His e-mail address is rwells@growmark.com.
FAS economist: Export market vital to farm economy BY DANIEL GRANT FarmWeek
The export market was a key to record farm income in 2008 and it will be an equally important component of economic recovery in the ag sector in 2009 and beyond. That’s according to Michael Dwyer, director and chief economist of USDA’s Foreign Agricultural Service (FAS). Exports each of the last two years accounted for as much as 33 percent of cash receipts in the farm sector compared to about 25 percent in prior years, Dwyer told FarmWeek during the Ameri-
can Farm Bureau Federation commodity outlook conference in Albuquerque, N.M. “The economic health of American producers is absolutely tied to foreign supply and demand factors,” Dwyer said. U.S. ag exports are projected to slip from a record-high $115.5 billion in 2008 to $97.5 billion this year and $97 billion in 2010. The current export forecasts for 2009 and 2010 still are the second and third highest on record despite the slide from last year. “The global economic crisis
M A R K E T FA C T S
Feeder pig prices reported to USDA*
Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $24.00-$34.23 $29.28 $30.00-$36.50 $33.50 n/a n/a This Week Last Week 24,200 21,529 *Eastern Corn Belt prices picked up at seller’s farm
(Prices $ per hundredweight) This week Prev. week $49.58 $48.26 $36.69 $35.71
Change 1.32 0.98
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week 85.83 85.85
Prv. week 81.90 81.24
Change 3.93 4.61
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 93.29 93.59 -0.30
Lamb prices Confirmed lamb and sheep sales This week 895 Last week 989 Last year 693 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $98; 110-130 lbs., $91.50-$92.75. Good and Choice 1-2: 60-90 lbs., $105. Slaughter Ewes: Utility and Good 1-3: $28-$30. Cull and Utility 1-2: $28.
Export inspections (Million bushels)
Week ending Soybeans Wheat 10-15-09 39.1 18.6 10-08-09 25.3 18.9 Last year 45.0 19.0 Season total 104.2 332.6 Previous season total 97.9 502.6 USDA projected total 1305 900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
bananas, rubber, and processed food and beverages — do not compete with American farm products. Overall, the FSA economist predicted U.S. ag will remain a net exporter as the economy and demand rebounds around the world.
“Most of the growth in ag exports the last 10 years has taken place in emerging markets,” he said. “Once the global recession ends, rising incomes and population will lead to rapid growth of the middle class and boost foreign ag demand.”
Glauber: Lower costs won’t offset drop in cash receipts on U.S. farms
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
plus increased competition have clearly hurt exports in 2009,” Dwyer said. “But exports still are up 100 percent since the last global slowdown (which was tied to the Asian financial crisis) in the mid- to late-’90s.” Meanwhile, U.S. ag trade is projected to remain at surplus levels of $21.5 billion this year and $15 billion in 2010 because U.S. imports of ag products for the first time are projected to experience a year-over-year decline from $81 billion in 2008 to $76 billion this year. “Agriculture and aircraft are the only two net export industries left in the U.S.,” Dwyer noted. U.S. ag imports in coming years are projected to increase. But Dwyer noted the bulk of ag products imported into the U.S. — such as coffee, cocoa,
Corn 24.6 23.3 31.7 238.8 229.8 2150
U.S. farm expenses this year are expected to drop $11 billion from the record high set a year ago, according to Joe Glauber, USDA chief economist. But the savings from lower fertilizer and chemical costs likely won’t increase overall profitability. In fact, farm income is expected to decline significantly from last year’s record as cash receipts are projected to plummet due to a sharp drop in commodity prices. “Expenses are down (this Joe Glauber year compared to last year), but not nearly enough to make up for the decline in cash receipts of $40 billion,” Glauber told FarmWeek recently during the American Farm Bureau Federation commodity outlook conference in Albuquerque, N.M. USDA projected cash receipts this year will decline by a staggering $22 billion in the livestock sector and $18 billion in the crop sector. The livestock sector in particular has struggled with higher feed prices on top of lower
meat prices and reduced demand, the chief economist noted. “Both sectors have been hit very hard, but certain sectors are doing better than other sectors,” he said. Cash receipts this year are expected to decline by $12 billion in the dairy sector, $5 billion in the beef sector, $3 billion in the poultry sector, and $2 billion in the hog sector. “The implication of all that is total farm equity is down 4 percent in 2009 compared to 2008,” Glauber said. Fortunately, farmers’ current debt-to-asset ratios are much healthier than in the farm crisis of the 1980s. But Glauber noted, “There are farmers looking at extremely tight credit situations.” He predicted the livestock markets will begin to recover by year’s end or sometime during 2010 as demand slowly recovers from the ongoing recession. He also predicted demand for grain and oilseeds will remain strong. “Farm income should improve in 2010 if input prices don’t spike as they did in 2008,” he added. — Daniel Grant
FarmWeek Page 15 Monday, October 26, 2009
PROFITABILITY Corn Strategy
C A S H S T R AT E G I S T
Slowest harvest on record Just like planting, harvest has become a “tale of two cities” — maybe even three. The pace of corn and soybean harvest is the slowest since USDA began keeping national data in 1974. Producers in the heart of the Corn Belt are feeling the brunt of the difficulties, just like they did at planting. The best progress has been in the western Corn Belt. Eastern producers are faring less well, but are still doing better than those in the center. Last year’s corn harvest closely followed 1979’s record
Basis charts
slow pace. This year’s early pace is well off the pace of both of those years. Unlike corn, last year’s soybean harvest was close to the five-year average because the warm, dry pattern sped the crop to maturity. This year’s harvest so far has closely followed 1977’s record slow pace. But given the weather of the last week, it’s likely to fall off that pace in subsequent weeks. This slow beginning to harvest is causing problems for grain merchandisers, those dealing with soybeans in particular. The U.S. has huge soybean and product export commitments to fill this year, mostly in the next few months. The slow soybean harvest has kept products from entering the pipeline, subduing the crush and export pace, while keeping basis levels firm. The situation is a little worse in the middle of the Corn Belt, where competition between exporters and processors is greatest. Unless the weather changes, that’s unlikely to change soon. For corn, it isn’t just wet weather but the lagging maturity and high moisture content that is slowing harvest. The ability to harvest the crop rapidly isn’t a problem; the ability to process it is. That should limit harvest all fall. AgriVisor endorses crop insurance by
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2009 crop: We are starting to sense that “lagging harvest emotion” could peak soon. Other than a few instances, good harvest rallies like this one have tended to be good selling opportunities. If weather emotion would carry December futures to $4.40, boost your sales to 50 percent. We could adjust that target at any time on the Cash Strategist Hotline. Be sure to check it frequently. Because of the large futures carry, a hedge-to-arrive contract for a April/May/June delivery may be the best pricing strategy. If you are a cash seller, be sure to check forward bids, too. Fundamentals: Weather is the primary variable carrying prices higher. The slower harvest progresses, the higher field losses might be. The outside markets are still psychologically supportive, but they have indirect fundamental influences as well.
Soybean Strategy 2009 crop: If weather and outside market influences drive prices higher yet, consider adding to sales. Leave orders to price another 20 percent if November soybeans hit $10.90. Like corn, it’s rarely a mistake to sell a harvest rally. Because of that, we could change the recommendation at any time. Check the Cash Strategist Hotline frequently. Unlike corn, there’s no “carry” in futures, making nearby sales more attractive than distant ones. Fundamentals: The slow harvest pace is the primary fundamental carrying prices higher at this time. Still, if the pace picks up, the market will easily absorb inventories coming into the pipeline because of the large commitments on the books. If the harvest were to remain slow, the risk will start to increase that soybean and product exports might not reach current expectations. We hear that Brazilian farmers are planting more early-maturity soybeans to take advantage of the premiums in their cash market.
Wheat Strategy 2009 crop: Wheat con-
tinued its upward trend on support from the weaker dollar and ongoing liquidation of old short futures positions. Use current strength to make catch-up sales. Now that December futures have penetrated $5.70, we may recommend additional sales. Check the Cash Strategist Hotline daily, we could pull the trigger at anytime. 2010 crop: If Chicago July futures approach $6.50, we might recommend an initial sale. Fundamentals: Export
sales are showing signs of picking up. Continue to keep an eye on soft red wheat planting. For the second year in a row, acreage could decline sharply. Rains are keeping producers from harvesting row crops, preventing wheat from being planted. It may be more difficult to get a good stand if the crop is planted in saturated soils. Even then, the later it’s planted, the less growth it might have before going dormant, making it more susceptible to winter kill.
FarmWeek Page 16 Monday, October 26, 2009
PERSPECTIVES
Trade, technology essential to alleviate hunger Oscar Wilde once said that ambition is the last refuge of failure. Next month, the Food and Agriculture Organization (FAO) of the United Nations will meet in Rome to announce the goal of eradicating hunger by 2025. That’s an ambitious goal. So ambitious that it sounds suspiciously like a prelude to failure. It brings to mind the thought that sometimes the best way to keep a promise is not to make it in the first place. Are we really DEAN going to wipe KLECKNER out hunger in the next 16 years? Don’t bet your farm on it. Yet we must give this undertaking our best effort. I believe — along with many others — that feeding the hungry is a moral imperative. The FAO is an institution that can help advance a worthy objective. If it’s truly serious about eliminating hunger, it will do more than provide an occasion for today’s political leaders to make grand statements that their unfortunate successors can’t hope to live up to. Instead, it will embrace two specific strategies in the fight
against hunger: free trade and biotechnology. Neither one is a panacea. Ensuring food security for all the people of the world will require success on any number of fronts, from improved irrigation in developing countries to a ready and affordable supply of fertilizer everywhere. Political stability is indispensable, too. Civil unrest is the handmaiden of malnourishment and famine. Trade and technology also are essential ingredients. We will not enjoy much forward progress without both of them. Trade makes it possible to move food around our planet, from places of plenty to places of scarcity, without interference from the artificial barriers of import tariffs or export levies. Technology makes it possible to increase yields on existing farmland, keep food prices in check, and deliver consumer benefits. Some world leaders have taken the current financial climate as an opportunity to turn their backs on trade. The United States may not be the worst offender, but in recent months it has avoided taking on its traditional leadership role. The current administration and Congress refuse to ratify sensible trade agreements with Colombia, Panama, and South
Korea. Their new “Buy American” rules have confounded longtime business partners in Canada. If we’re to feed the whole planet, it must become easier for American food producers to sell their beef in Korea and their corn in Europe. We also must figure out a way to revive the Doha round of world trade talks. The existing deadlock hurts our ability to move food from country to country, especially between advanced nations and the developing world. If we don’t make substantial progress in this area, the FAO will not meet its hunger goal for 2025. Biotechnology is no less important. Thankfully, many American officials seem to
understand how much it matters. The key is to make other nations share this sense of urgency. Farmers in the Western Hemisphere have embraced biotechnology to marvelous effect. Growers in Asia and Australia also are adopting biotechnology because they see how it helps to produce more with less. Yet resistance in Europe remains a significant roadblock. Until we get past it, biotechnology won’t begin to realize its full potential. Most of the unnecessary suffering that results will take place in sub-Saharan Africa, which keeps the genetically modified crops at a nervous arm’s length because of Europe’s destructive attitude.
President Obama won the Nobel Peace Prize “for his extraordinary efforts to strengthen ... cooperation between peoples.” Reasonable people may disagree on the merits of his diplomacy. Yet there can be little doubt that his diplomacy will succeed if he can help wipe out hunger by strengthening economic and scientific cooperation between countries through free trade and biotechnology. And if the FAO can persuade him to adopt these causes, maybe it will deserve to become a Nobel laureate as well. Dean Kleckner, an Iowa farmer, chairs Truth About Trade & Technology. He may be contacted at {www.truthabouttrade.org}.
World Food Day reminds us many are still hungry around the globe Thirty years ago in 1979, the Food and Agriculture Organization of the United Nations issued a proclamation declaring World Food Day to heighten public awareness of the world problem of hunger and malnutrition. The problem was real then and it still is. One billion people — one in six — in the world today don’t get enough food to be healthy. Each year, 11 million children die before reaching the age of 5. A hungry mind cannot concentrate. Hungry bodies don’t have the energy to work. We all know that you can’t fix a probJOHN lem unless you know what causes it. BLOCK Natural disasters, such as floods, droughts, and tsunamis, and wars all contribute to hunger. There is war in the eastern Congo now with nearly a million killed and 900,000 displaced. The misery in Zimbabwe was forced upon a nation that had been a
food exporter until President Mugabe confiscated the farms and gave them to his friends and the landless poor. Not a surprise, they don’t know how to run a farm. We are not going to be able to put an end to natural disasters or even nation conflicts, but there are two things we can do. We can deliver food to the needy when disaster strikes. We do that now through the World Food Program. I serve on the board of the Friends of the World Food Program, and I can tell you the World Food Program does a terrific job. The other thing that must be done, or we will never make any progress in combating world hunger, is helping poor, backward countries improve their agricultural production. I have been in Africa several times. Their tiny garden-type farms hardly produce enough to feed the family that tends the crop. In comparison, one farm in the U.S. produces enough food for 150 people.
Those countries’ farms desperately need the science and technology that has made ours great. In most cases, they don’t have hybrid seeds; they don’t use commercial fertilizer; they don’t control weeds and pests with chemicals. They need genetically engineered seeds. Commercial science-based agriculture has been under assault recently by some high-profile elites that pretend to know something. They don’t seem to have much compassion for the world’s hungry. World Food Day reminds us that if you “give a man a fish, you feed him for a day; teach him to fish and you feed him for a lifetime.” John Block of Gilson, a former U.S. agriculture secretary in the Reagan administration, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman, which specializes in ag issues. His e-mail address is jblock@ofwlaw.com.
Letter to the editor Is environmental legislation driven by a socialist agenda? Editor: Farmland preservation sounds wise. But, it’s actually a highly restrictive zoning program that’s sweeping an unsuspecting country. It strips you of your right to develop your property for any purpose other than farming as it’s zoned strictly tillable. This is far from wise because you get nothing in return. Worse-case scenario: Landowners are being set up
for the socialist reformation. Imagine the near future when all this ground is zoned tillable. With a stroke of the almighty government’s pen, farming becomes unprofitable. Your land values plummet, and the government steps in and buys it up, nationalizing the new farming collective for the good of the people. Cap-and-trade legislation and greenhouse gas regulations also are an immediate cause for concern. There are
huge numbers of scientists who disagree with the viability of the science. What little carbon is released is negligible compared to the devastating government taxing structure, totally unrealistic, given the facts. It defies the farmer’s best friends, logic and common sense. Follow the money: Carbon trading is the business of global warming, a socialist mechanism to redistribute wealth with virtually no envi-
ronmental effect on the planet. Everyone should Google “The Report from Iron Mountain.” This is a leaked report from a U.S. government think tank (published in 1967) charged with coming up with a way to keep everyone subject to government in a socialist/communist “one world order.” The solution, “create a credible environmental threat to the planet.” Not necessarily true, just believable. The
plan from 1967 is being implemented today! Americans should organize and fight this egregious legislation. It’s a hoax! It’s a sign of the socialist times! Rise up freedom-loving Americans; unite against a bipartisan government that has sold us out and is no longer working for the Republic. The corruption and lies are evident at every turn. MARK THOMPSON, Dewey