FarmWeek September 21 2009

LEGISLATION THAT would expand existing federal jurisdiction over “navigable” waters to simply “waters of the United States” was much discussed last week. .............3

T H E S TA T E ’ S G R A I N INDUSTRY on a voluntary basis is adopting a state-of-the-art electronic program to better manage its grain inventory. ...............................8

WITH HARVEST CLOSE at hand, it is particularly important to think farm safety. Farm Safety and Health Week runs through Saturdaday. ..................................................13

Monday, September 21, 2009

Two sections Volume 37, No. 38

Leaders see congressional ‘room to work’

BY MARTIN ROSS FarmWeek

Amid seemingly sagging momentum for public health care and greenhouse “cap-andtrade” proposals, Illinois Farm Bureau Leaders to Washington last week saw ag interests having “room to work.”

As Leaders canvassed Capitol Hill, the U.S. Senate Finance Committee rolled out a health blueprint that drops a House-proposed, governmentrun “public option.”

IFB Governmental Affairs Director Mark Gebhards predicted health care will “dominate” debate over coming weeks. Lawmakers cited a likely focus on financial industry regulatory reform over contentious cap-and-trade debate, if a health compromise is reached this fall.

Further, Sangamon County Leader Jim Birge noted Sen. Dick Durbin, a Springfield Democrat, offered IFB leaders “some pretty open concessions” on the estate tax (see below).

Durbin agreed to support extension of the soon-toexpire biodiesel tax credit and urge USDA to help struggling swine producers.

“I think we’re seeing faltering on some of the bills that

appeared to have a lot of traction early on,” Birge said.

“Cap and trade is not as much in the bag as we thought it was originally. (The private option) is not gaining traction.

I think we have some room to work here,” said Birge, who also is manager of Sangamon County Farm Bureau.

The Senate Finance Committee plan favors health “coops” that would provide coverage to under- or uninsured Americans, as well as health tax credits and subsidies.

Reforms would be funded through a tax on insurers that offer high-cost health policies.

Republicans balk at the bill’s insurance mandates and estimated $856 billion price tag, while many Democrats fear proposed taxes would impact insurance costs even for low-income consumers and cite the lack of a public option.

“Will there be a public option the way most people want it? Not likely,” Durbin told IFB leaders.

IFB supports legislation that ensures affordable care, reinforces rural health care facilities, and exempts ag employers from having to cover seasonal workers.

Peoria Republican Rep. Aaron Schock sees room for compromise on issues such as Republican-sought medical malpractice reform, arguing Democrats “need a health care bill” to retain support in 2010 elections.

“We need to make some changes with regulatory laws on how insurance companies compete across state lines, allowing portability with people’s health care plans,” he told FarmWeek. “(Legal) tort reform is a way for us to

reduce costs in the health care system.

“There’s 80 percent of health care reform that Republicans and Democrats agree on. We just have to get that bill that will get bipartisan support.”

GETTING READY

David Johnson from Kings in Wayne County last week was among many farmers throughout the state performing last-minute maintenance on a combine in preparation for the approaching harvest season.

Johnson works for David White, who said he plans to begin combining either corn or soybeans this week. According to last week’s Wayne County crop tour, the county’s average corn yield should be about 150 bushels per acre. Soybeans should average 34.2 bushels per acre. (Photo by Ken Kashian)

Periodicals: Time Valued

Lawmakers support higher estate tax exemption Recognizing high farm capital costs and the ravages of continued inflation, lawmakers were sympathetic to calls by participants of the Illinois Farm Bureau Leaders to Washington program for durable, long-term estate tax relief.

Under current law, the estate tax will be eliminated in 2010, but it could be reinstated with a $1 million individual tax exemption in 2011 without congressional intervention.

Rep. Deb Halvorson, a Crete Democrat, agreed “nobody should ever lose their farm because of taxes.” But she told the leaders that Congress “can’t just eliminate” the

estate tax, given the revenues it generates for federal coffers.

In a non-binding budget resolution, lawmakers recently proposed extending the current 45 percent top tax rate and the $3.5 million individual/$7 million-per-couple exemption over the next five years, but the IFB leaders lobbied for at least a $10 million exemption.

U.S. Sen. Dick Durbin, a Springfield Democrat, indicated he could support that level of exclusion, acknowledging producers “don’t represent the major sources of estate tax.”

He said he recognized the need for additional farm “breathing

FarmWeek on the web: FarmWeekNow.com

room,” given rising real estate values.

IFB Board member Jim Schielein argued a “reasonable” exemption indexed for inflation, along with “steppedup basis” (where estate tax basis equals fair market value of property at a producer’s death, meaning less taxable gain when it later is sold) would preclude having to periodically “revisit” the issue.

Batavia Democrat Rep. Bill Foster agreed Congress’ failure to consider inflationary impacts was “just stupid.” “It’s why we’re in this whole mess,” he said.

Foster noted House discus-

FarmWeekNow.com An interview with a Leader to Washington participant on her views about the estate tax is at FarmWeekNow.com.

sion of a plan that would allow heirs to defer estate taxes as long as their land remains in family production.

“As long as you’re on the land, farm the land, I’m in favor of indefinitely deferring the estate tax,” Foster said.

Leaders related the impact the tax has had on their families: Sangamon County farmer See Tax, page 2

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

FarmWeek Page 2 Monday, September 21, 2009

GOVERNMENT

Quick Takes FA T H E R O F G R E E N R E VO L U T I O N DIES — Dr. Nor man Borlaug, 95, the plant pathologist who grew up on an Iowa farm and won the Nobel Peace Prize in 1970 for the “Green Revolution,” died recently at his Dallas home.

Borlaug, credited with saving the lives of millions, was a tireless advocate for moder n production agriculture from the 1970s until his death. He continually stressed the need for chemical fertilizers and pesticides to increase food production.

Borlaug became known as the “man who fed the world” and the “father of the green revolution” for his groundbreaking plant-breeding work in Mexico in the 1940s, in Asia in the 1960s and 1970s, and on the African savannas in the 1980s.

He proved science had the capability to increase food production exponentially.

DORR NAMED USGC HEAD — For mer USDA Undersecretary for Rural Development Thomas C. Dorr will serve as president and CEO of the Washington, D.C.,-based U.S. Grains Council (USGC). Dorr will officially assume the role on Nov. 16.

He said being an Iowa farmer for more than 30 years and serving seven years with USDA afforded him the opportunity to understand and value the nearly 50 years of export market development efforts orchestrated by the USGC. Dorr said his first priority will be to work with the council’s membership, board of directors, and staff to clearly define the challenges and the opportunities for international grain trade.

H O O S I E R C O R N D I S T I L L E D I N TO VODKA — Indiana corn is being used to create an unusual locally grown product — vodka, according to IndyStar.com. Stuart Hobson of Hear tland Distillers is marketing his handc r a f t e d c o r n - b a s e d vo d k a a t r e t a i l o u t l e t s around Indiana and offering samples at festivals and trade shows.

Hobson is producing about 1,200 bottles of his Indiana Vodka each month and has plans to make an Indiana gin in the near future.

The entrepreneur is considering adding local and regional fruits to his vodka to make flavored vodka.

(ISSN0197-6680) Vol. 37 No. 38 September 21, 2009 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

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Illinois Farm Bureau Leaders to Washington Jim Schielein of Lee County, left, and Robin Cruse of Champaign County discuss a variety of issues with Batavia Democrat U.S. Rep. Bill Foster, a Harvard-trained physicist and researcher who replaced former House Speaker Dennis Hastert in 2008. Foster is critical of House capand-trade proposals, urging instead innovative energy conservation/emissions reduction strategies. (Photo

by Martin Ross)

Washington eyeing better ways to corral climate change Those include incentives for vastly improving home insulation and energy efficiency and what U.S. Rep. Bill Foster was among a minority of Foster termed a sort of “cash-for-clunkers for House Democrats who voted against potentially long-haul rigs” aimed at helping put more enercostly cap-and-trade legislagy-efficient trucks on the tion that cleared the House road. this summer.

The study maintains a $500 The Batavia congressman, a billion investment would con‘I hope we can do Harvard-graduated physicist and tribute to $1.2 trillion in fuel former Fermilab researcher, sees better.’ savings by 2020. a better way — several better “We should do 100 percent — U.S. Rep. Bill Foster of the things that pay for ways that “pay for themselves,” Batavia Democrat in fact — to rein in greenhouse themselves before we start gas (GHG) emissions and thus punching the energy-intensive global climate change. businesses, which is the A growing number of ag, commercial, and whole point of view of the (House bill),” government interests are challenging proposals stressed Foster, who said he received a “very to cap GHG emissions by energy providers and respectful arm-twisting” from the White House industry, potentially raising the cost of electrici- to support the measure. ty, fuel, ag inputs, transportation, and food.

“I hope we can do better. Eventually, we’ll Illinois, which is highly reliant on coal-generat- have to do things that cost money, but this ed power, stands squarely in the bill’s crosshairs. thing is not optimized at all that way.”

In light of recent developments, the Senate Springfield Democrat Sen. Dick Durbin is casting a wary eye on House proposals, and emphasized the need for final federal approval of climate debate could well be pushed into 2010.

Mattoon’s FutureGen clean coal power/carbon An aide to Rock island Democrat Phil Hare last sequestration project to ensure future availability week told Illinois Farm Bureau Leaders to of natural gas for non-utility uses.

Washington that Hare anticipates “a very differHowever, several lawmakers including ent bill” emerging from the Senate.

Durbin, the second most influential Democrat Foster cited a recent report by the McKen- in the Senate, remain diehard advocates of fedzie Consultancy, a research think tank, outlineral greenhouse controls, as well. “I think it is ing 650 non-regulatory options for reducing critically important to do this,” he told the IFB greenhouse emissions. leaders.

BY MARTIN ROSS FarmWeek

Tax Continued from page 1 David Ray’s father “lost his livelihood” at age 55 with the death of his farm landlord, and Ray fears his heirs could be forced to sell out under a $1 million exemption.

Champaign County’s Robin Cruse cited the “fees and time and preparation” she and her husband have invested to ensure

their currently young children aren’t forced to sell their inheritance.

On a broader level, forcing families to liquidate business holdings results in “lost productivity in our economy,” Peoria Republican Rep. Aaron Schock told FarmWeek.

“I don’t believe the government here does a better job of stimulat-

ing the economy than private entrepreneurs and private businesspeople,” Schock said.

“The estate tax is a very, very dangerous thing for a lot of farmers who have $1 million or $2 million or $5 million or $10 million nowadays, with farm ground going from $4,000 an acre upwards to $8,000 to $10,000 an acre,” he said. — Martin Ross

FarmWeek Page 3 Monday, September 21, 2009

GOVERNMENT

Leaders shed light on ‘waters’ debate concerns

BY MARTIN ROSS FarmWeek

Illinois Farm Bureau Leaders to Washington last week educated Capitol Hill lawmakers on congressional proposals that could draw farmers into murky new regulatory waters.

The Clean Water Restoration Act, recently approved by the U.S. Senate Environment and Public Works Committee, would expand existing federal jurisdiction over “navigable” waters to simply “waters of the United States.”

According to American Farm Bureau Federation regulatory specialist Don Parrish that would be going “well beyond what people think of as ‘water.’”

Under the measure spearheaded by Sen. Russ Feingold (D-Wis.), federal agencies could regulate activities affecting not only lakes and streams but also ditches, erosion features, and grass waterways.

House Transportation and Infrastructure Chairman Jim Oberstar (D-Wis.) is expected soon to introduce a companion bill.

The Feingold/Oberstar measure would exempt “prior converted” farmland, but land must remain in production to qualify for exclusion.

That restricts landowner development rights — “the type of equity a farmer has to send their kids to school or retire on,” Parrish told FarmWeek.

And the exemption fails to cover a number of crucial ag practices and protections.

Hancock County cattleman and levee-drainage commissioner Sam Zumwalt warns the bill “could very easily put drainage districts and farming in the river bottoms out of business.”

“Because I run cattle where I can’t run a planter and where there’s a stream and rolling hills, (the bill) will eliminate cattle production on my farm,” Zumwalt said.

“I’m not sure it won’t put me out of business. It’s the marginal ground you run your livestock on.”

Senate Environment Committee member Mike Crapo (R-Idaho) is working to keep the measure off the

Senate floor. Crapo has put a “hold” on the bill, requiring 60 Senate votes for its passage, and Sen. Dick Durbin, a Springfield Democrat, reported the measure “isn’t going anywhere right now.”

Leaders presented Illinois lawmakers statistics on “waters” covered by the bill in each congressional district.

Nearly 210,000 miles of permanent and temporary “waters” statewide reportedly could be affected.

Batavia Democrat Rep. Bill Foster questioned whether Oberstar would “do anything that damages farmers.” He nonetheless suggested the negative impacts the IFB leaders detailed bore further consideration.

Durbin said he favors “some reasonable way to protect wetlands that truly are wetlands,” but agreed restrictions on manmade structures could “remove a (pollution) filter for the water.”

“Never take the word ‘navigable’ out,” insisted Crete Democrat Rep. Deb Halvorson when she met with the IFB group.

Do court ruling, EPA plans muddy ag waters?

The combined impact of the Clean Water Restoration Act (see accompanying story), recent court action, and U.S. Environmental Protection Agency (EPA) review of selected pesticide uses could mean challenging times ahead for growers.

The U.S. Sixth Circuit Appeals Court added an ominous new wrinkle to the “federal waters” debate in January with a ruling that classified a pesticide sprayer and nozzle as a potential “point source” of pollution.

Traditionally, that classification is reserved for waste products, American Farm Bureau Federation regulatory specialist Don Parrish told FarmWeek during last week’s Illinois Farm Bureau Leaders to Washington tour. The court’s decision could impose new regulatory hurdles and costs on producers “as they just try to protect their crops,” he said.

In the wake of the ruling, EPA is developing permits for eight categories of pesticide application “on, over, or near water.” EPA ag counselor Larry Ellworth said his agency is focusing on practices such as pond algaecide use or mosquito controls, “not terrestrial (land-based) areas,” and assured the IFB leaders “We do not plan to go any further.”

But Parrish remains wary of the potential created by the court ruling, especially in combination with potentially expanded federal water jurisdiction.

“We’re talking about processes that have to be done on a minute-by-minute, hour-by-hour basis, not on a weekly or monthly basis,” Parrish said. “If insects are eating the crop up, you have to get rid of them now. You can’t wait two weeks to get EPA approval and a permit to spray.

“We can probably keep pesticides out of streams. Keeping them out of erosion features or grass waterways or out of roadside ditches is going to be highly improbable.” — Martin Ross

Wright: USDA focusing on farm, food connections

BY KAY SHIPMAN FarmWeek

USDA wants to connect farmers and consumers through a new “Know Your Farmer, Know Your Food” initiative that will capitalize on interest in locally produced foods.

“Food and agricultural issues are at the center of a national conversation,” Interim Deputy Under Secretary Ann Wright told participants of the National Small Farm Conference last week in Springfield.

Wright, a Sangamon County native, highlighted several programs and services that Agricul-

FarmWeekNow.com To check out USDA’s YouTube channel about the “Know Your Farmer” initiative, go to FarmWeekNow.com.

ture Secretary Tom Vilsack is planning to help farmers access more markets, including school districts and other institutions.

“This administration is committed to issues that are vital to small farms and rural economies,” Wright said.

As part of the Know Your Farmer initiative, USDA will start Farm-to-School “action

Ann Wright, USDA deputy under secretary for marketing and regulatory programs, a Sangamon County native, chats with Curtis Chisley, a meat and product specialist with Southern University Ag Center, at the National Small Farm Conference in Springfield. Wright discussed USDA’s new “Know Your Farmer, Know Your Food” program last week. (Photo by Kay Shipman)

teams” to help schools buy more locally grown food for student lunches, Wright said.

The agency also plans to write practical guidelines to help districts buy more food from local and regional farmers.

In addition, USDA also plans to allow cutting, slicing, and other processing of local foods for school meal programs to help meet year-round demands in areas with short growing seasons. Currently,

USDA allows minimal processing of regional fruits and vegetables for school meals.

Last Friday, USDA launched a Know Your Farmer website intended to pull together all types of programs, services, and other information, Wright added. She noted the initiative will use existing farm programs.

“USDA is tuned into that (diverse farmers’ needs) and wants to help them apply for federal grants and programs to

help them grow their businesses,” Wright said.

“The USDA is focusing on small- to medium-sized farmers and making them vital in their states,” added Rayne Pegg, administrator of the USDA Agricultural Marketing Service (AMS). Pegg encouraged farmers to let AMS know about marketplace barriers they encounter and factors that may help them reach markets.

USDA proposes rules to allow interstate shipments from state-inspected processors USDA is proposing regulations for a new voluntary program that would allow selected stateinspected meat and poultry processors to ship products to other states. It is part of the “Know Your Farmer, Know Your Food” initiative.

USDA’s Food Safety and Inspection Service (FSIS) would oversee the program, which was created in the 2008 farm bill, to supplement the existing federal-state cooperative inspection program. The proposal would allow stateinspected plants with 25 or fewer employees to ship products across state lines.

“This new cooperative interstate shipment program will provide new economic opportunities for many small and very small meat and poultry establishments, whose markets are currently limited,” said USDA Deputy Under Secretary for Food Safety Jerold Mande.

Currently, Illinois and 26 other states have state meat or poultry inspection programs that FSIS has verified as having requirements that at

least are equal to federal requirements.

Under the proposed rule, selected processors will receive inspection services from federally trained and supervised state inspectors who will verify that the establishments meet all federal food safety requirements.

Meat and poultry products produced under the voluntary program will have an official USDA inspection mark and will be eligible for interstate shipment.

State-inspected establishments that are not selected, including those with more than 25 employees, can sell and ship products only within their state.

USDA is accepting comments on the proposed rules until Nov. 16. Comments may be emailed to {www.regulations.gov} or mailed to: FSIS Docket Room, USDA, FSIS, OPPD, Docket Clearance Unit, 5601 Sunnyside Ave., Stop 5272, Beltsville, MD, 20705. All comments must include the initials FSIS and the docket number FSIS-2008-0039.

FarmWeek Page 4 Monday, September 21, 2009

GOVERNMENT

Federal stimulus funds

USDA funding eight Illinois floodplain restoration projects

Under the emergency watershed program, NRCS may acquire permanent easements on More than 800 floodplain acres will be private land or that owned by state and local restored in Illinois as part of USDA’s first governments — if the land has been damaged signup for floodplain easements, state Natural by flooding at least once in the last 12 months Resources Conservation Service (NRCS) offior twice in the past 10 years. cials announced last week.

Landowners retain several rights to the prop“We’re (NRCS) now ready to acquire the per- erty, including control of public access and manent easements,” Ivan undeveloped Dozier, assistant state conrecreational servationist for programs, uses, such as told FarmWeek.

‘We’re (NRCS) now ready to hunting and USDA will invest acquire the per manent ease- fishing. $1.655 million to buy the After NRCS ments.’ easements and restore 470 has the easeacres in Adams, Clark, and ments, the — Ivan Dozier agency will fund Kendall counties. Another assistant state conservationist for programs $1.153 million will be used the work to to acquire easements on restore the land 394 acres in Lawrence and to act as a Pope counties. The landowners in those two floodplain. In Illinois, the conservation work counties will complete the restoration. will involve clearing debris and replanting native Illinois NRCS received 320 applications for vegetation, primarily bottomland hardwood forfloodplain projects, which were narrowed to the est species, Dozier said. top 10. Landowners involved with eight proIllinois NRCS worked “to ensure the most jects accepted the government’s offer, while effective use of the funds by enrolling land with those with two other projects declined, Dozier the greatest benefit to protect against future explained. floods, improve water quality, enhance wildlife Nationwide, NRCS is acquiring easements on habitat, and reduce the need for future disaster more than 36,000 acres in 36 states, including assistance,“ said Bill Gradle, NRCS state conIllinois. servationist.

BY KAY SHIPMAN FarmWeek

Timing, ACRE key in wheat decisions

BY MARTIN ROSS FarmWeek

It’s a matter of timing and calculated risk for Illinois producers mulling winter wheat options.

Producers have until Sept.

30 to purchase crop insurance for fall-planted 2010 wheat.

Oct. 31 is the official final plant date for insured Illinois wheat, and producers unable to finish planting within a fiveday grace period after that date will see an automatic drop to 60 percent of their insured crop guarantee (unless they purchase a 5 to 10 percent prevent plant “buy-up”).

Corn growers, on the other hand, had 25 days after final planting date to get their crop planted, subject to a 1-percentper-day reduction in guarantees.

Given the wheat insurance window and possible crop harvest delays this fall, Illinois producers must consider “whether they can get the corn and beans off soon enough to get wheat planted,” said Illinois Farm Bureau risk management specialist Doug Yoder.

Producers enrolled in the 2009 average crop revenue election (ACRE) program or considering 2010 ACRE participation face an additional consideration in weighing wheat planting risks.

According to Yoder’s calculations based on USDA’s September crop update, 2009-harvested wheat stands to receive the highest average Illinois payouts under ACRE. Under currently projected ACRE revenues — the prod-

‘Whether you’re currently in ACRE or not, that’s something that may go into your planting decisions for next year.’

— Doug Yoder IFB risk management specialist

uct of projected average state yields and national price estimates derived from USDA’s Sept. 11 crop report — Illinois growers could see payments of $57 per acre for wheat, $55 for oats, $41 for corn, and $25 for beans, assuming they also have subsequent losses on their farms in order to qualify.

“Whether you’re currently in ACRE or not, that’s something that may go into your

planting decisions for next year, because ACRE covers what you plant, not your (program) base acres,” Yoder said.

Sept. 30 also is the deadline for ACRE participants either to prorate their prospective payments across all crops according to each crop’s percentage of their total planted acres, or, in the case of growers with more planted acres than base acres, prioritize which crops are to be covered first.

Those who do not designate payment distribution will have payments automatically prorated.

To receive ACRE payments, losses also must be triggered at the farm level, and Yoder suggested producers who experienced this year’s “miserable wheat conditions” may want to consider prioritizing crops “to make sure they get all their wheat covered.”

Finally, producers who opt to insure crops should carefully evaluate which policies offer them the optimal protection under their individual circumstances.

For example, Yoder noted county-based group risk plan or group risk income protection policies do not offer replant provisions for fallseeded crops.

USDA designates 58 counties disaster areas USDA granted Gov. Pat Quinn’s request to designate 58 Illinois counties as natural disaster areas because of excessively wet weather last spring.

The designation also qualifies farmers in 30 contiguous counties for USDA assistance, including low-interest emergency loans.

The designation was based on excessive rain and wet conditions that delayed or eliminated spring planting.

Because of the extremely wet conditions, the National Agricultural Statistics Service’s Illinois field office estimated 100,000 acres of corn were abandoned.

The crop currently is forecast to yield 179 bushels an acre, which means as many as 17.9 million bushels of corn may have been lost due to wet weather or flooding.

“While the latest USDA report indicates Illinois will harvest a near-record corn crop, damage assessments conducted this spring and summer show some farmers may have suffered significant production losses because of heavy rains,” Quinn said.

Illinois marked the ninth wettest April-through-July period on record. Precipitation totaled 20.94 inches, or 4.74 inches above average.

The 58 counties declared as primary disaster areas are: Adams, Alexander, Bond, Boone, Brown, Calhoun, Christian, Clark, Clay, Clinton, Crawford, and Cumberland.

Also: Douglas, Edwards, Effingham, Fayette, Fulton, Gallatin, Greene, Hamilton, Hardin, Jackson, Jasper, Jefferson, Jersey, and Johnson.

Also: Lake, Lawrence, Lee, Macoupin, Madison, Marion, Massac, McDonough, McHenry, Mercer, Monroe, Montgomery, and Morgan.

Also: Ogle, Perry, Piatt, Pike, Pope, Pulaski, Randolph, Richland, Saline, Schuyler, Scott, Shelby, St. Clair, Stephenson, Union, Wabash, Washington, Wayne, and Whiteside.

The 30 contiguous counties approved for disaster assistance include: Bureau, Carroll, Cass, Champaign, Coles Cook, DeKalb, DeWitt, Edgar, Franklin, Hancock, and Henderson.

Also: Henry, Jo Daviess, Kane, Knox, La Salle, Macon, Mason, McLean, Moultrie, Peoria, Rock Island, Sangamon, Tazewell, Vermilion, Warren, White, Williamson, and Winnebago.

Farmers who believe they may qualify for disaster assistance should contact their local Farm Service Agency (FSA) office.

FSA staff will verify whether farmers have crops that are eligible for emergency funds.

Applications are considered on a case-by-case basis, taking into account the extent of losses, security available, and the applicant’s repayment ability.

FarmWeek Page 5 Monday, September 21, 2009

EDUCATION

WIU ag enrollment up, counters universitywide drop

BY KAY SHIPMAN FarmWeek

Agriculture enrollment continues to climb at Western Illinois University (WIU), while the university’s overall enrollment dropped this fall on the Macomb campus.

“The agriculture employment outlook remains strong,” said William Bailey, director of the WIU School of Agriculture. “It’s testimony to the talent of our faculty that students see value” of an agriculture degree, he said.

In 2008, WIU recorded the highest ag enrollment in at least the past two decades, and this fall’s enrollment increased 5 percent compared with last year’s, Bailey said. The Ag School has 340 undergrduate students this year.

Campuswide, WIU registered an enrollment decrease of 300 students. The Ag School is now the third largest in the university behind law enforcement and education, Bailey noted.

Enrollment increased across the board in different agriculture majors. Interest in animal science remains particularly strong, Bailey said. The horticulture program noted a big improvement in student enrollment, he added.

Overall, WIU registered an increased number of ag students transferring credits from community colleges along with more freshmen students.

“We look at transfer students as an important part of what we do,” Bailey said.

To recruit new students, the Ag School sends its students to speak with high school students.

In addition, the Ag School also is reaching out to students from “non-traditional areas with non-ag backgrounds,” Bailey said. Those students may be interested in the environment and different sources of renewable energy.

“They see problems and want to become part of the solution,” Bailey concluded.

High school ag students reflect changes Illinois high school agriculture students, much like the state’s ag industry, don’t reflect their parents’ generation.

Only 10 percent of the families of today’s high school ag students earn more than half their income from farming, meaning 90 percent of their fellow classmates don’t live on farms, based on data from the Facilitating Coordination in Agricultural Education (FCAE).

Jay Runner, FCAE coordinator, reported recent trends during a meeting of the Illinois Leadership Council for Agricultural Education (ILCAE) and the Illinois Committee for Agricultural Education (ICAE).

“What we think is important is that very few (ag) students depend on farm income and are not taking agriculture to become farmers. They have other reasons,” Runner told FarmWeek.

Based on 2008-2009 school information (the most recent available), 25,968 high school students and 3,080 junior high school students were enrolled in Illinois ag classes. The 319 high school agriculture programs across the state averaged 21 students per class and 91 students per program. FFA chapter membership averaged 57 students per school.

Of high school ag students, 42 percent receive considerable net earnings — $10.5 million overall — from their supervised agricultural experience (SAE) projects.

The students’ SAE income is taxable and helps support local school districts among other local government services, Runner noted. “We’re (ag ed programs) really self supporting and generating dollars out here with SAEs,” he added.

Illinois ag students aren’t the only ones who are changing.

Slightly more than half of all Illinois ag teachers, 52 percent, are 40 or younger. Thirty-one percent alone are 30 or younger and 35 percent have five or fewer years of teaching experience.

“Demographically, we’re (ag teachers) pretty young out there,” Runner said. “It’s very young as a profession.”

Ag classes and the credits students may earn also are changing. About 77 percent of agriculture programs also award science credit, and 20 percent award consumer education credit.

Meanwhile, 3 percent award math credit and 1 percent each award language arts and social sciences credit. — Kay Shipman

Jim Mellor, second from right, livestock manager for Charles Sturt University in Waga Waga, Australia, discusses the impact of the Australian drought on livestock feeding with Western Illinois University (WIU) agriculture students. The students, from left to right, are: Brad Kreher, New Athens; Luke Simmons, Galva; and Aaron Davidsmeier, Virginia. The students participated in a two-week tour of Australian agriculture as part of the study abroad program at WIU. (Photo by William Bailey, WIU)

Program to help college students be ag advocates On Oct. 15, the Animal Agriculture Alliance will launch a new program to help college students become advocates for the agriculture industry.

College Aggies Online will provide students with tools to help them communicate effectively with the public, said Kay Johnson Smith, the Alliance executive vice president. The program is a joint venture of the Alliance and American National CattleWomen Inc. Participants will receive training and instructions from industry professionals and have access to a private forum to post information

about current and emerging issues facing farmers and ranchers.

Ag-related clubs from all universities with an agricultural academic program may register for the program. All members will receive individual accounts, where they can customize their homepage and upload information.

Interested collegiate clubs or departments should contact Krissa Thom at KThom@animalagalliance.org or 703-5621410. Those interested in becoming a program sponsor should go online to {www.animalagalliance.org} for information.

FarmWeek Page 6 Monday, September 21, 2009

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Just another day in paradise here in Northern Illinois, still no rain for the month of September and steady temps in the mid-to low 70s. The soybeans are turning fast now with some early fields dropping leaves and starting to dry down.

The corn also is turning color, more every day, but is still very wet and a long way from being dry enough to combine.

Our local equipment dealer said his sales are down because several of his customers are upgrading their corn dryers instead of replacing equipment.

Pete Tekampe, Grayslake, Lake County: A dry, cool week in Lake County. No rain, but heavy dew every morning. The temperatures are in the mid-70s during the day and the low 50s at night. Corn and beans have basically shut down and are trying to mature. Hopefully, we will have at least another three weeks before frost. They are calling for rain Monday (today). That would be the first rain we have had in more than two weeks. Be patient and have a great week.

Leroy Getz, Savanna, Carroll County: Dry and sunny with no rain yet in September. Corn is nearing black layer. Choppers have been filling silos. Seed corn is being picked. Soybeans are just plain dying with some of them losing their leaves. Hay making is coming to a close.

There seems to be plenty of deer and turkey running everywhere.

Ron Frieders, Waterman, DeKalb County: Another week of good weather has helped crops mature. They are still at least two weeks behind normal for this time of year. Usually by now a few fields of early-soybeans would have been combined and someone would be trying to do corn, even if it’s a little wet. This year, most beans are green with some yellow leaves and corn is way too high in moisture. There is a seed corn processing plant in Waterman and trailers piled high with ear corn are rolling into town, so I guess harvest is coming, just not here yet.

Larry Hummel, Dixon, Lee County: It’s a race. Crops realize the end of the season is drawing near and they are doing everything they can to reach maturity before Jack Frost catches them. The majority of the soybeans have started to turn yellow with a few dropping leaves while others are still a deep, dark green. Corn is acting more like the tortoise in the race. Plotting along, slow but sure, as the milk line works its way down the kernel. Earlyplanted corn is nearing the finish line and looking pretty good. Corn planted the end of May and into June better pick up the pace to have a chance of beating ole Jack Frost.

Joe Zumwalt, Warsaw, Hancock County: What a beautiful week it was in Western Illinois.

Warm, dry, breezy conditions have helped to mature a crop, which seems to be lagging behind. Producers are getting anxious to head to the fields, but very few have begun harvest.

Those who have are shelling some above-average-yielding corn with moistures in the mid- to lower 20s. There will be a lot of beans cut before the majority of the corn is shelled. We are hoping to start with some corn as you are reading this report, but will switch to beans before the end of the week. I am sure looking forward to being in a combine again. I’m just thankful for a crop to harvest this year.

Ken Reinhardt, Seaton, Mercer County: Yet another dry week. Seed corn is the only harvest activity at this point. A few early soybeans may go this week. Otherwise, there will be very little harvest this month. The driest corn in the neighborhood hand shelled at 30 percent. Corn yields will vary widely through the field according to drainage. Soybean yields are, as usual, hard to guess. The late dryness and cold nights along with heavy disease pressure don’t seem very positive for them.

Tim Green, Wyoming, Stark County: Another very pleasant week. A lot of people are talking about starting to pick corn around the first part of October — easily two weeks later than usual and for some it is three weeks later. It’s going to be a long fall. Corn doesn’t seem to be drying down very fast. The days aren’t warm enough, the wind is not blowing, and the mornings are pretty dewy.

The big talk has been white mold and how badly it is starting to show up on almost half of the bean fields. There are people are talking 50 percent loss of yield on those fields. It looks like it could be bad.

Mark Kerber, Chatsworth, Livingston County: It was a good, warm week to start drydown of this crop about to be harvested. Soybeans really turned this past week. White mold and aphids have been a problem attacking some soybean varieties and fields. Corn has a long way to go before it is dry enough. Ears on the inside of the fields are much smaller than the outside rows if you are windshield-checking fields. My neighbor tells me you are not a full-time farmer unless you own a Batwing mower, auger cart, and semi. Well, we are officially there as we recently purchased a truck and two trailers. Need a load of rock? A lot of roadside mowing is taking place. It’s a scramble to see who can be the last to mow.

I know one farmer who mows after harvest, he could be in snow this year. Markets had a great one-day upsurge on a frost scare.

Ron Haase, Gilman, Iroquois County: Most of the corn fields in the area are in the dent stage (R5). The milk line is anywhere from 10 percent to all the down the kernel or black layer (R6). Most corn has the milk line 20 percent to 50 percent of the way down the kernel. Diseases and remobilization of nutrients to the filling ear have caused deterioration of plant health. I have heard of three fields of soybean being harvested this past week.

Most soybean fields are in the full seed growth stage (R6) with other fields entering into the beginning maturity growth stage (R7). The local closing prices for Sept. 17 were $3.03 for nearby corn, $9.51 for nearby soybeans, and $9.36 for new-crop soybeans.

Brian Schaumburg, Chenoa, McLean County: Waiting for the first combines to roll as most hand samples are still over 30 percent. Scouting has shown a lot of disease in all crops. It looks like spraying will pay off in both yield and harvestability.

Seed prices for 2010 are of particular interest as farmers contemplate their next move. We were glad to host the Unity Community Center (“The best place yet!”) kids for a farm visit. Corn, $3.04, $3.15, January soybeans, $9.53, $9.32, January wheat, $4.06.

Steve Ayers, Champaign, Champaign County: I didn’t think I would say this in 2009, but we need a rain! Forecasters are predicting rain off and on this week with temperatures in the 55to 80-degree range. Looks like the northern Midwest potential for “frost on the pumpkin” has been pushed back to the last week of September, allowing more time for crop development. There is more confirmation of white mold in soybeans and reports of diplodia ear rot in corn. Seed corn harvest continues with normal yields and a few loads of corn and beans are dribbling in. Farmers are busy preparing for harvest. Think safety!

Wilfred Dittmer, Quincy, Adams County: A cool 46 degrees this Friday morning which makes the week almost an exact carbon copy of the previous week with no rain at all and only 0.2 of an inch of rain for the month. Corn is drying down fairly well and a few farmers have dusted off the corn-head snouts. Some to the south already have a good start. Soybeans are another subject, with most fields still green. Only occasionally do you see a field that may be starting to turn. Do be careful out there when the machines do get up to speed. Summer will be over tomorrow; where did it go?

Harry Schirding, Petersburg, Menard County: Rainfall last week, none. Total rainfall for September, 1.7 inches. Normal rainfall for September, 3.3 inches.

The change in maturity of corn and soybeans is very noticeable.

Most of the harvested corn has been testing between 28 and 30.

A report from the south side of the county stated moisture levels were in the low 20s. Early indications are that grain quality may not be as good as normal. More soybean plants are dropping leaves with a few fields nearly 75 percent defoliated. White mold was identified in a 40-acre field last week. With most crops one to two weeks behind, producers are hopeful frost comes late this year. The last cutting of hay is being completed as producers prepare for harvest. Corn nearby, $3.12, up 8 cents; soybeans nearby, $9.47, down 70 cents; corn for January, $3.12, up 15 cents; soybeans for January, $9.52, up 29 cents.

Tom Ritter, Blue Mound, Macon County: Harvest started for a few individuals in the area late in the week. The majority of the corn to be harvested will not be attempted for another 10 days to two weeks. There was a report of one field of soybeans, approximately 10 miles away, that was harvested, but, again, it will be a week to 10 days before soybean harvest will be in full swing. Yield reports on corn because of the very limited harvest have been mixed.

Very early varieties of corn tend to yield a little bit lower in this area, but there also have been some problems with white mold and lower test weights. It is too early to tell whether that will follow through on corn that will be harvested a little bit later. Most farmers are anxious to get started. Trying to be patient, and not wanting to harvest too high of moistures.

Todd Easton, Charleston, Coles County: Crops here in Coles County are steadily coming to maturity aided by the recent heat and lack of rainfall. Our growing degree days for late-May planted corn are approaching 2,500 units, which puts the majority of the area corn crop at physiological maturity in less than two weeks. Soybeans are turning rapidly because of the hot and dry conditions. We did not get the late rain I was hoping the beans would get. There was a chance for some this past weekend, but it may be too late to do very much good. By next Friday, I’m sure there will be a scarce combine or two running with many more following the next week. I can hardly wait for the combine monitors and truck scales to tell us how our crops dealt with such a uniquely challenging year and what we can learn from it.

Jimmy Ayers, Rochester, Sangamon County: This past week was sunny and warm during the days. The evenings were cool.

There has been a considerable amount of fog and a lot of moisture during the evenings as well. The crops are beginning to show signs of maturity. Some of the beans are starting to get some yellow splashed here and there. A few have been shelling corn. Moistures are running 19 to 24 on those that I have heard about. A lot of people have tried to shell their early corn and moistures are running from 28 to low 30s. Farmers are anxious to get running. Yields are pretty respectable for the first round of the corn that was planted early to mid-April. If we can get another week or week and a half without a frost, we can have a fairly decent crop. I’m not sure what the later-corn will end up yielding. Be careful and think safety.

David Schaal, St. Peter, Fayette County: No rain for the week, but some would sure be welcomed. Temperatures are cool of a morning, but afternoons seem to warm up quite well. Yards are a lot more brown than the crops are in the fields. Corn is maturing and dying at the same time. Maybe more dying than maturing due to dry weather. The lack of rainfall in the last two weeks also has shaved bushels off of our soybean crop. Soybeans here do not look very good in the middle of the day with the sunshine beating down on them. It is like they are giving up.

Bean yields are not going to be worth a hoot here if water doesn’t come soon. The county crop tour is Thursday and we will get a better handle on stuff then. Things in the northern part of the county are probably somewhat better.

Have a safe week.

FarmWeek Page 7 Monday, September 21, 2009

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: Harvest is about to begin, and we are starting about a month late, so please be careful. Corn moisture dropped considerably last week, but it is still high — anywhere from 27 to 35 percent on our farms. I have heard of 17 to 22 percent moisture from a local elevator. There was some silage harvested last week in Shelby County. Ear set is really high and it was reported to me that the corn was not as good as last year when they cut silage. Soybean aphid populations exploded in the southern half of the county and many farmers were having insecticide applied either by plane or field sprayers. Rain last month was 2 inches and we have had 0.02 of an inch this month. Busy getting equipment ready and scouting fields for problems and trying to find dry corn to pick.

Soybeans are three weeks off around us but Group II beans are changing fast. Cash corn, $3.15; fall corn, $2.99; January 2010 corn, $3.14; fall 2010, $3.46; cash beans, $9.53; fall beans, $9.38; January 2010 beans, $9.51; fall 2010, $8.82; old wheat, $3.04; new wheat, $4.16; truck diesel, $2.74; B11 diesel, $2.60; gas at pump, $2.23 to $2.45.

Dan Meinhart, Montrose, Jasper County: Another very dry, cool week. Silage choppers are running in the late-May-planted corn that survived. The Juneplanted corn is still too wet to chop. Soybean fields are starting to turn on the late-May and earlyJune-planted beans. The majority of the beans are still blooming and setting pods. The pods that are present are very flat. The majority of beans have a very long, long way to go yet and are desperately needing a rain. A very large area has not had a significant rain for seven weeks. Seed wheat companies estimate only 50 percent of the wheat will be planted as compared to last year due to the extremely late soybean crop.

USDA has finally recognized the fact that there are many thousands of intended corn acres that have not been planted to corn. But it has yet to recognized the fact that there are thousands and thousands of acres that have not been planted to anything. USDA has declared 58 Illinois counties disaster areas plus 30 adjoining counties eligible for disaster benefits (see page 4), yet it predicts a bumper crop. The weather forecaster gave us a slight chance of rain over the week end. Cooler temperatures are expected for this week.

Ted Kuebrich, Jerseyville, Jersey County: Corn harvest has started in Jersey County. A couple of farmers are shelling some of the early-planted corn.

The moisture is running about 19 percent down in the Illinois River bottom and in the low 20s on the eastern part of Jersey County. One of the farmers that I spoke to said his corn is yielding 200 bushels at 15 percent moisture. Beans in the county are at different stages of maturity with the leaves on early-planted beans turning brown and falling off and the late-planted beans still blooming. Prices at Jersey County Grain, Hardin: cash corn, $3.33; new corn, $3.15; January corn, $3.20; June corn 2010, $3.46; cash beans, $9.72; new beans, $9.56; January beans, $9.65; June beans 2010, $9.31.

Bob Biehl, Belleville, St. Clair County: Another dry, mild week. Corn is slowly ripening, but slow is the key word. Late corn has developed some leaf disease, but cooler weather has kept it from spreading too much.

Corn overall, considering planting date, looks really good. Ears have some really nice size to them. Whether it will beat the frost remains unanswered. Beans remain grass green.

Aphids continue to be a problem in this area.

Right now, they are attacking the wheat stubble beans more so than the first crop. Spray or not to spray is the debate. Most have chosen not to as the crop is not stressed and farmers are tired of spending money on a crop that gets cheaper every day. Doublecrop beans are still putting on pods, and there is no question that they will get frozen before maturity. First-crop beans look good with very little leaf disease, but crop height may be the limitation for larger yields. Our main activity has been electrical work on a drying and storage setup that we have updated. Also, we cleaned out some old-crop corn last week on the one-day rally.

Rick Corners, Centralia, Jefferson County: Ugh. No rain.

Bad mood. No talk.

Kevin Raber, Browns, Wabash County: A very nice week here in Southeastern, Illinois. No rain, but the weather was excellent for field drying of corn. There have been several acres of corn shelled. I’ve heard of some moisture as low as 18 percent.

The early beans really matured in the last week. Fields I thought would be two or three weeks away look close to harvest. The warm weather and soil moisture are helping the late-planted beans.

Dean Shields, Murphysboro, Jackson County: We got 0.8 of an inch of rain last week. We needed a little bit of moisture and it was welcomed. Things are moving along. A few guys are starting to pick a little bit of corn.

Leaves on the soybeans are turning yellow and it looks like it won’t be too long before some beans are cut in the area. Harvest is just around the corner for us. We will see what the yields do. Everyone is interested in finding out. Looks like the next few days will be spent finishing up repairs on some stuff and getting ready for harvest. Everyone have a safe harvest.

Ken Taake, Ullin, Pulaski County: We had some showers early in the week. We received about 0.6 of an inch of rain total. People were getting back in the field about Wednesday. We’ve shelled about 100 acres of corn that we planted early. The poor stand due to wet weather hurt the yield, but it yielded slightly below average, so we weren’t too upset. Other corn we have was planted three weeks later, but the standability looks poor — like it’s starting to fall. I see a lot of corn borer damage. We were hoping to start that corn Friday (Sept. 18). A few people have cut some early soybeans. I haven’t heard anything about yields. Our early beans are getting close to ready, and we will probably start trying to cut some of those this week.

Reports received Friday morning.

When is your corn crop safe from frost?

The Illinois State Water Survey has compiled some ballpark estimates on the typical first frost in different areas of Illinois, according to Bob Frazee, University of Illinois Extension natural resources management educator.

For Northern Illinois, the first frost usually occurs during the first week of October; for Central Illinois, usually the second week of October; and for Southern Illinois, typically the third week of October.

For more specific data for your area, go online to {www.isws.illinois.edu/atm os/statecli/Frost/frost.ht m}.

How might frost potentially impact the maturing of the 2009 corn crop?

Frazee reported the same criteria that are used to determine when the corn crop is safe from frost damage also can be used to help determine when the corn

crop is mature and can be harvested.

Physiological maturity is the term used to describe the point of grain development at which the kernels have maximum dry weight and the plant is safe from yield loss by frost.

The formation of the black layer is the signal of full kernel maturity.

Kernel moisture usually Average first frost dates

Source: Illinois State Water Survey

is around 30 to 35 percent at physiological maturity, depending upon the hybrid. Corn harvest can begin at physiological maturity, but many farmers usually choose to let the corn dry in the field until it reaches 22 to 28 percent moisture.

According to university research, if a corn crop is prematurely killed 10 days

to two weeks before blacklayer maturity, a 4 to 5 percent grain yield reduction can be expected.

However, Frazee cautioned that if the corn crop is killed three weeks before physiological maturity, the yield loss may approach 10 to 20 percent with considerable reduction in grain quality.

A corn crop killed by

freezing temperatures one month before normal maturity (or 30 to 35 days after silking) is reduced in potential grain yield by 35 to 50 percent, and the grain probably is not marketable.

After considering all those facts, Frazee said he expected an early frost this year would have a major impact on most cornfields throughout the state.

Chicagoland Equestrian Expo moves to new Lake County fairgrounds The Horsemen’s Council of Illinois will sponsor an Equestrian Lifestyle Expo Nov. 21-22 at the Lake County Fairground’s Expo Center, Grayslake.

The all-breed equestrian trade show will offer products and services for horse owners.

Vendors will include those with English and Western tack and clothing for all breeds; feed, supplements, health care products; and facilities, equipment, and stable supplies, such as barns, stalls, fencing, generators, and gators, according to Joy Meierhans, Expo manager.

The Expo will not have horses on site, but will have a large educational component, featuring clinicians, nutritionists, veterinary specialists, and researchers, according to Meierhans.

Complete exhibitor and attendee information will be posted as it becomes available at {www.horsemenscouncil.org}.

Exhibitor application forms will be the first information to be posted, followed by speakers and their program listings.

For exhibit information, contact Meierhans at 630-557-2575 or JM@TheMeierhans.com.

FarmWeek Page 8 Monday, September 21, 2009

GRAIN

IDOA launches pilot grain inventory program

BY KAY SHIPMAN FarmWeek

The state’s grain industry is adopting a state-of-the-art electronic program to better manage its grain inventory, said the chief of the Illinois

Department of Agriculture’s (IDOA) Bureau of Warehouses.

“It’s a change in the way we’ve done business — a good change,” Stuart Selinger told FarmWeek. “We’re really providing a powerful tool to the

industry to better manage grain quality and quantity.”

Selinger was not aware of any other state using a similar electronic inventory system.

Illinois-licensed grain elevators and warehouses are participating voluntarily, but Selinger anticipated the program’s use will be mandatory in 2010.

Participating elevator and warehouse operators take monthly measurements of grain and enter the data into the new computer program, dubbed ExamNet. The program, which applies more than 20 years of IDOA examiners’ formulas of grain measurement, computes the amount of grain, Selinger

explained. “All the configurations of grain (in a bin or warehouse) can be easily calculated,” he added.

The program offers an additional safety bonus because it reduces the number of times IDOA examiners have to enter bins to take measurements,

Selinger noted.

“We want to emphasize the Bureau of Warehouses is not getting out of the grain inventory business,” Selinger said.

“We will at least annually test their (licensees’) inventory.”

IDOA examiners also will do random spot checks to ensure

State grain industry at a glance The Illinois Department of Agriculture (IDOA) has licenses for: • • • •

297 grain warehouses; 309 grain dealers; 1,045 licensee locations; and 1.27 billion bushels of permanent storage capacity.

Source: IDOA warehouses bureau

the accuracy of self inventories.

State Agriculture Director Tom Jennings added the new program will save examiners time during an inspection and allows them to spend more time focusing on licensees’ financial matters. IDOA examiners also will complete full inventory exams at elevators around the state that are not participating in the pilot program.

Selinger pointed out elevator and warehouse operators who use ExamNet will have 12 or 13 measurements a year instead one or two. Additional regular information is especially important as grain operations become larger and have multiple sites, he said.

Currently more than 19 elevators are participating voluntarily in the pilot program.

IDOA installed the software and trained their personnel on its use.

“We welcome anyone to participate and jump on board,” Selinger said.

Short-term energy outlook, price drops The short-term energy outlook released this month by the Energy Information Administration (EIA) predicted the price of gasoline and natural gas will get cheaper in coming months.

EIA projected the monthly average price of regular grade gasoline in the U.S. will decline from an average of $2.62 per gallon in August and September to an average of $2.56 per gallon in the fourth quarter.

Meanwhile, the spot price of natural gas was projected to average $2.32 per thousand cubic feet next month which, if realized, would be the lowest monthly average spot price since September 2001.

EIA also projected retail prices for electricity next year will show a year-over-year decline for the first time since 2003.

However, fuel prices were projected to go back up next year from an average of $2.34 per gallon for gasoline to $2.70 in 2010. Diesel fuel prices were predicted to increase from $2.47 per gallon this year to $2.88 next year.

The increase in fuel prices was tied to a projected increase of crude oil prices from an average of $60.12 per barrel this year to $72.42 next year.

The prices are still well below the peaks in 2008 when gasoline averaged $3.26 per gallon, diesel fuel averaged $3.80 per gallon, and oil averaged $99.57 per barrel, according to EIA.

FarmWeek Page 9 Monday, September 21, 2009

FarmWeek Page 10 Monday, September 21, 2009

MARKETS

ISA strives to boost state’s Poultry-auto parts annual soybean production brouhaha spinoff

BY DANIEL GRANT FarmWeek

The Illinois Soybean Association (ISA) recently launched a new program designed to put an end to the so-called “yield plateau.”

ISA beginning with the 2010 growing season will host a Yield Challenge that will combine the talents of farmers, students, and Ron Moore agribusinesses in an attempt to boost soy yields in Illinois.

Winners of the challenge will receive prizes (applications are due by April 1), but the ultimate goal of the contest is to spotlight yield-boosting methods that can be duplicated around the state, according to Ron Moore, a soybean farmer from Roseville who last month was elected chairman of ISA. “Hopefully, the successes of the Yield Challenge can be recreated around the state and ultimately we can increase pro-

duction,” Moore told FarmWeek.

Moore believes soybean yield increases must be able to compete with those of corn in order to maintain or increase soy acreage in Illinois.

At his farm in Warren County, Moore recently achieved record yields for both crops. However, his soybean yield was just a halfbushel better than his previous record while his corn yield increased by about seven bushels per acre from the previous high on his farm.

In fact, Moore said he has harvested record corn yields on his farm four out of the past five years.

He said he believes a key to increasing acres for soy production rests with the ability to boost the competitiveness of beans with corn on a peracre basis.

Participants of the challenge will receive free soil testing for nutrients and soybean cyst nematodes along with free protein and oil analyses of harvest samples.

For more information about the 2010 Yield Chal-

lenge, call 888-826-4011 or visit the website {www.soyyieldchallenge.com}.

ISA is striving for increased soy production as demand is expected to increase for exports and for feed in the growing aquaculture industry, which Moore described as “one of the fastest growing food sectors for human consumption.” Soy exports the past year set a new record.

“One of the bright spots we’ve seen is the export market to China. They (the Chinese) seem to continue to demand soybeans for their livestock operations and for human consumption,” Moore said. “We see that (demand) only getting higher. That’s why we have to continue to work to increase production in the U.S.” Other farmer leaders who were elected last month to ISA posts are Mike Cunningham of Bismarck (vice chairman), Doug Winter of Mill Shoals (secretary), and Bill Wykes of Yorkville (treasurer). Matt Hughes of Shirley was reelected as the ISA assistant secretary/treasurer.

of House proposal?

The Chinese government has threatened to restrict U.S. imports of chicken and auto products after the Obama administration put punitive sanctions on Chinese tire imports.

The controversy is the latest spinoff of an ongoing faceoff over Chinese poultry that has heavily influenced recent Sino-U.S. ag trade relations.

The Obama administration announced Sept. 11 it would impose stiff tariffs on Chinese-made tires for the next three years due to a jump in Chinese tire imports.

The Chinese Commerce Ministry then announced planned procedures against U.S. chicken and auto product imports, claiming it had received complaints from local producers that U.S. goods were being “dumped” in China at below-market prices.

House Republicans and senators from both parties are pushing to end a two-year ban on Chinese processed poultry that would be continued in House-passed fiscal 2010 ag appropriations legislation. A Senate-passed version of the bill would undo the ban, returning authority to determine the safety of Chinese poultry products to USDA. The Obama administration objects to poultry prohibitions in the House bill, and China has filed a complaint with the World Trade Organization charging they violate trade rules.

A House-Senate conference committee is expected to resolve the issue later this month, but the Chinese poultry ban has strong backing from House Ag Appropriations Chairman Rosa DeLauro — a major House food safety advocate — and other Democrats on the panel.

FarmWeek Page 11 Monday, September 21, 2009

COMMODITIES

BY JEFF BUNTING

I’m starting to see signs of fall: soybeans turning, corn looking golden, and high school football games on Friday nights.

The latest issue of the Illinois crop progress and condition report places corn maturity about one week behind last year and about three weeks behind the five-year average. There have been years with late harvests, but the crop those years was further along than this year’s crop.

As I look at hybrid plots across Illinois, yield potential looks pretty good. This indicates we have better hybrids today, but we continue to deal with the perennial issues such as nitrogen deficiency symptoms, corn leaf diseases such as gray leaf spot and northern corn leaf blight, and ear rots such as Diplodia.

It will be important to monitor fields with diseases and plan to get to them early to minimize harvest loss.

Auction Calendar Tues., Sept. 22. 80 Acres Edgar County. Soy Capital Ag Services Sat., Sept. 26. 8 a.m.

Consignment auction, harvest equipment. Route 9 Auction Co., CANTON, IL. Sat., Sept. 26. 9:30 a.m.

Miscellaneous. Chris Fowler, ALEXIS, IL. Gregory Real Estate and Auction, LLC. Sun., Sept. 27. 11:30 a.m.

Collector tractors, misc. James Stilla Jr., MILWAUKEE, WIS. Gordon Stade, auctioneer.

Tues., Sept. 29. 10 a.m.

Livestock equipment. Gary Edwards, Pure Cattle LLC, CAMERON, IL. Van Adkisson Auction Service.

Tues., Sept. 29. 6 p.m. Real estate. Indiana State University, CASEY, IL. Stanfield Auction Co. Sat., Oct. 3. 9 a.m. Farm machinery and equipment.

Sunny Brook Farms, AVA, IL. McCormick Auction Service.

Sat., Oct. 3. 10 a.m. Land Auction. Kenneth and Sam Gehant, MENDOTA, IL. Espe Auctioneering.

Sat., Oct. 10. 9 a.m. Real estate and personal property. U Ralph Galloway Trust, SESSER, IL. Jamie Scherrer Auction Co. Mon., Oct. 12. 7 p.m. Land.

Van Kalker Family, L.P. Gordyville Auction Arena, GIFFORD, IL. Gordon Hannagan Auction Co. Fri., Oct. 23. 10 a.m. Estate land auction. Ruth B. Hamm Trust, HUDSON, IL. Haycraft Auction Co. Sat., Oct. 31. 9:30 a.m.

Consignment Auction. N.I.T.E. Equipment, PECATONICA, IL. Sat., Nov. 14. 8 a.m. Machinery consignment auction. Route 9 Auction Co., CANTON, IL.

The big question is: Do we have enough time to finish the crop? If we look at the long-range forecast (the next 10 days Jeff Bunting from Sept.

16), it appears we will accumulate about 112 to 160 growing degree units (GDU) in Illinois.

If 44 percent of the corn crop is in the dough stage

(starch accumulation has now caused a milky inner fluid to thicken), the kernel moisture is roughly 70 percent. To reach physiological maturity (36 percent kernel moisture), we need to lose 34 percent of that moisture.

It’s no surprise that corn reaching physiological maturity in early September will dry down faster than corn reaching maturity in late September.

From dough stage to dent stage takes about 250 GDUs, and from dent to physiological

maturity takes about 350 GDUs. Taking this into consideration, it will be important to get to maturity before frost to avoid reduction in kernel weight if frost comes in during the dent stage. If you’re interested in knowing what stage your corn crop is in, take a couple of ears to your local FS crop specialist.

Soybean growth and development also are affected by cool temperatures. Soybean senescence is about two weeks

behind the five-year average.

We have all heard of the “record” yields that are out there for both the corn and soybean crops, but we do have a long way to go.

This might be like last year with good weather, but first we need the crop to be ready, and that’s something we can’t control right now.

Jeff Bunting is GROWMARK’s seed corn product manager. His e-mail address is jbunting@growmark.com.

FarmWeek Page 12 Monday, September 21, 2009

FROM THE COUNTIES

L

EE — In honor of National Farm Safety and Health Week, members may purchase “buy 1, get 1 free” slow-moving-vehicle signs available at the Farm Bureau office.

ACON — Farm Bureau will sponsor a flu shot clinic from 7 a.m. to 1 p.m. Friday, Oct. 2, at the Farm Bureau auditorium.

Cost for the flu shot is $35 and a pneumonia shot is $55. There will be no charge for those with Medicare.

Call the Farm Bureau office at 217-877-2436 for more information.

IATT — A meeting to form a Wildlife Committee will be at 6 p.m.

Wednesday, Oct. 14, at the

M

P

Farm Bureau office. New members are encouraged to attend, and program ideas for the year will be discussed. Call the Farm Bureau office at 762-2128 for reservations or more information.

ILL — The Morning Investment Club will accept cash or check donations for purchasing phone cards to be sent to troops who are serving overseas. The group is working with the American Legion and Operation Care Package in the project. Mail or drop off donations at the Farm Bureau office. Checks are to be made payable to “Phone Cards for Troops.” Call Norma Meader at 815-838-

W

5317 or Mark Schneidewind, Farm Bureau manager, at 815-727-4811 for more information.

• The Operation Care Package program is now under way at the Farm Bureau office. A list of items which will be sent to military personnel for Christmas is available at the Farm Bureau office. Donations may be dropped off from 8:30 a.m. to 4:30 p.m. weekdays at the Farm Bureau office.

“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.

Exploring facts, myths surrounding hedge apples At this time of the year, old fencerows have produced a crop of hedge apples. Hedge apples are the fruit of the Osage-orange tree, which is a member of the mulberry family, according to Bob Frazee, University of Illinois natural resources educator.

During the 19th Century, many Midwestern farmers found the Osage-orange tree to have admirable qualities, according to Frazee.

The trees are tough and durable; transplant easily; tolerate poor soils, extreme heat, and strong winds; and have no

serious insect or disease problems. The trees were planted widely as a living fence because they provided an impenetrable barrier to livestock.

According to University of Nebraska researchers, dried hedge wood is the highest in Btu of dried wood from native trees when used as firewood.

The researchers noted burning hedge wood results in considerable sparks so a protective screen or shield is needed when the wood is burned in fireplaces.

It’s the fruit of the Osageorange, however, that intrigues people.

Many people buy hedge apples believing they can repel or control insects, spiders, and even mice in homes, basements, and garages.

Tales about the use of hedge apples as a pest solution, complete with testimonials about apparent success, have been passed around, but there is no valid evidence to confirm the claims, according to Frazee.

He recounted that a few years ago, Iowa State University toxicologists extracted compounds from hedge apples that were found to repel insects when in concentrated form; however, the scientists reported natural concentrations of the compounds in hedge apples were too low to be an effective repellent.

EPA launches tour to fight climate change The Environmental Protection Agency (EPA) last week kicked off “Change the World, Start with Energy Star” events across the country, encouraging kids and their families to fight climate change.

The agency is working with the Boys & Girls Clubs of America and Parent Teacher Organizations (PTO) Today to involve young people in energy-efficiency service projects in their communities.

Kids from Boys and Girls Clubs in 60 locations will conduct energy check-ups at homes and in their communities.

Through PTO Today, EPA will reach out to 6,000 schools across the country with “Go Green Nights” to help families learn about energy-efficient changes they can make in their homes and schools to save energy and help fight climate change.

FarmWeek Page 13 Monday, September 21, 2009

SAFETY

Country, IFB, sheriffs seek safer roadways Gib Cady knows firsthand the tragedy of rural roadway collisions — they make up half the incidents to which the Henry County sheriff and his deputies respond.

As a lifelong county resident, Cady often finds familiar faces among the victims of these incidents. For those reasons, he plans to use the Sept. 20-26 National Farm Safety and Health Week theme, “Rural Roadway Safety – Alert, Aware and Alive,” to create added awareness and reduce farm equipment collisions.

According to a Country

Financial annual survey, roadway collisions involving farm equipment accounted for 24 percent of Illinois farm deaths from July 1, 2008, to June 30, 2009. Roadway collisions ranked as the second leading cause of farm deaths behind

tractor rollovers.

“Roadway safety requires a continuous educational program. Our county Farm Bureau is good about making sure farmers have new, properly placed slow moving

vehicle (SMV) symbols on their equipment,” said Cady of the red and orange SMV triangle.

Displaying SMV symbols properly constitutes only part of roadway safety education.

Cady recently helped the Illinois Sheriff ’s Association (ISA) create a new Highway and Farm Safety Committee to address rural roadway crashes. Cady, ISA president, wants to find a method of measuring roadway incidents involving farm equipment throughout Illinois.

The committee and members of the Illinois Roadway Safety Group, which includes Country, have discussed developing a roadway crash form.

The form could be used by law enforcement first responders to gather data about collision causes and injuries.

Gib Cady Data could then be used to increase roadway safety awareness for farmers and rural motorists in an effort to reduce rural roadway collisions.

“The worst accidents seem to involve farm tractors,” Cady said. “It’s difficult to pull up to something like that. We need to do everything we can to prevent roadway collisions and save lives.

To further increase roadway safety awareness, Cady and his 76 deputies distributed a new Illinois Farm Bureau handout to motorists at events throughout the summer.

“Share the Road Safely” includes tips for rural motorists and farmers.

The right way on the roadway Farmers sharing the road with rural neighbors and passers-through should remember to: • Avoid peak traffic hours and the busiest roads when moving farm equipment.

• Use escort vehicles when moving equipment. Escort vehicles should closely follow farm equipment to afford the highest visibility.

• Pull over and allow traffic to pass if road and shoulder conditions are safe enough to do so.

Meanwhile, rural motorists can prevent collisions by: • Taking their foot off the gas as soon as they see farm equipment.

• Passing farm equipment only if they know conditions are safe.

• Exercising extreme caution on rural hills and curves.

Farmers, motorists risk hazardous deer encounters

BY MARTIN ROSS FarmWeek

El Paso producer Daryl Hodel shares the road with rural neighbors, travelers, and truckers, and a close shave has made him acutely aware of the hazards of Illinois’ highways and byways. (Photo by Ken Kashian)

Farmer champions awareness for improved roadway safety While driving down U.S. 24 in his tractor, Daryl Hodel, took one final look over his shoulder. Beyond the large wagon he was towing, he saw his wife, Deb, driving behind him in a pickup. Two semis loomed behind in the distance.

With his turn fast approaching, Hodel flipped on his left turn signal to warn the oncoming semis not to pass.

Yet the trucks weren’t slowing down.

Back in the pickup, his wife realized the trucks had no intention of slowing. She immediately called her husband and warned him not to make the turn.

Hodel heeded the warning. Shortly after hanging up his cell phone, the semis barreled past and overtook them both.

“The trucks just blew right by,” Hodel remarks.

“If I had made the turn, I wouldn’t be here today.”

Situations like this are a common occurrence for farmers who often put their lives on the line when transporting their slow-moving farm equipment along rural roadways. This is especially true during fall harvest.

Hodel, who owns a 2,200-acre farm located near El Paso in Woodford County, also wants to boost roadway safety awareness. He has been working with the Illinois Farm Bureau to petition manufacturers to improve farm equipment signaling devices.

According to Hodel, inadequate signal lights on the back of farm equipment could be a major cause of accidents involving farmers making left turns.

“All of the flashers and blinkers are yellow.

We need a set of red blinkers with arrows to show we’re turning,” says Hodel. “Oftentimes, drivers don’t even realize these farming vehicles are turning, which causes them to pass the machine at unsafe times.”

He believes an independent blinking signal in the shape of a directional arrow would provide improved visibility for rural drivers. So far, farming equipment lacks a distinctive, arrow-shaped turn signal. However, progress is under way.

Recently, Hodel and other Woodford County Farm Bureau members proposed the signal idea to the Illinois Farm Bureau Resolutions Committee.

In the meantime, Hodel knows farmers and motorists share equal responsibility for roadway safety.

“Drivers need to keep their distance and remain patient. We don’t always turn at normal places. We need to swing right before turning left because our equipment is so large. Most importantly, motorists should make sure to always closely watch farm equipment’s signals.”

When deer are in a “rut,” motorists can wind up in a ditch — or an emergency room.

Illinois Department of Natural Resources (IDNR) spokesman Chris McCloud told FarmWeek Illinois deer/vehicle collisions have “leveled off ” over the past few years even as deer numbers statewide have remained stable.

According to IDNR, Illinois is home to nearly 800,000 whitetailed deer. Encounters between drivers and deer are at their peak in late October through December.

Country Financial alone reported 8,604 Illinois deer/vehicle incidents in 2008, paying out nearly $23.3 million in claims at an average $2,707 in estimated damages per incident. That’s compared with 9,521 incidents in 2004.

“The most popular places for animal-human contact to occur are either the places with the most humans or the places with the most deer — not necessarily both,” McCloud related.

“There’s obviously a higher rate of deer-vehicle accidents in Cook County? Why? There certainly are quite a few deer up in that area, but there’s also two-thirds of the population of the entire state in Northern Illinois.

“If you have a lot of cars, you’re going to run up the chances of contacting a deer. In the converse, if you go to an area in Central or Southern Illinois where there aren’t nearly as many people as in Cook County, there may be a lot more deer.”

McCloud noted collisions occur most frequently during the deer’s “rut,” the period when the hooved herbivores essentially have only two things on their minds — “food and finding a mate.”

That cool-weather imperative distracts them from potential hazards within their immediate environment, including speeding cars, he advised.

“It’s probably easier to educate humans than it is to educate the animals,” McCloud said, adding that roadway caution is key to minimizing deer-driver encounters.

Exercise extra care in areas deer are known to inhabit or where they may be prevalent, such as near open spaces, forested areas, harvested fields where deer may feast on crops or crop residues, or creeks where animals may stop for refreshment.

“If you’ve seen them in a place once, chances are you’re going to see them again,” McCloud said. “During the rut, the most crucial times are at dawn and dusk, when deer are most active.”

FarmWeek Page 14 Monday, September 21, 2009

PROFITABILITY

Outside influences leave oil market supply, demand in the dust

BY JACKIE MCKINNIS

A range-bound trade in the oil complex has caused many heads to shake in bewilderment.

Supply has overwhelmed storage; demand has remained weak; production has kept rolling, albeit at reduced levels; and crude oil has remained locked in a $15 range for four months.

Hurricane threats have been mostly non-existent, and geopolitics arguably are quiet.

Why, then, haven’t the laws of supply and demand acted like a gravitational force on this market?

It seems we have been watching the dollar index as our most reliable indicator for oil trends. Since about 2002, a strong inverse relationship has developed between the U.S. dollar and crude oil.

The most dramatic illustra-

tion of this was the summer of 2008 when crude oil reached a historical high, and the dollar index sank to its historical low.

The dollar index is as low as it was a year ago, although not to the point it was for five long months in 2008.

It has been on a steady or lower trending pattern since March 2009, with mostly lower lows and lower highs being made. Breakouts from this pattern have been few and far between.

Oil prices must increase when the dollar devalues in order to reimburse the oil-producing nations for their product. We have learned over the last few years that crude oil (as well as other commodities) is being used as an inflation hedge whenever the dollar falls.

When traditional equity investments look too risky, it

becomes desirable to flock to tangible, heavily used commodities that look like a safe bet.

Some in the world are ready to kiss the U.S. dollar goodbye as the world’s reserve currency.

China, among others, has been

vocal about moving away from a reserve currency, but actions speak louder than words.

China has been buying massive amounts of U.S. Treasury debt. A devaluation of our currency hurts Chinese holdings;

their silent endorsement speaks volumes.

Supply and demand eventually will win out in the oil complex. It certainly worked in summer of 2008 when sky-high oil prices finally crushed American demand.

And rampant unemployment has ensured that we have not yet reverted back to our old habits.

Demand, while not improving, has quit deteriorating.

Supply is leveling out; while there are massive stocks, particularly in distillates, the accumulation has slowed.

There is little doubt that a seasonal fall decline will occur this year, but continuing dollar weakness may keep it in check.

Jackie McKinnis is a GROWMARK energy analyst. Her e-mail address is jmckinnis@growmark.com.

Lower feed costs offer livestock producers some relief

BY DANIEL GRANT FarmWeek

Livestock producers struggling for much of the past two years with the economic imbalance of higher production costs and lower market prices could see some relief in coming months.

Input costs, particularly feed prices, are trending down and are expected to moderate.

“It looks like input costs will be lower across the board,” said

Steve Meyer, president of Paragon Economics who, along with the Steiner Consulting Group, publishes the CME Group Daily Livestock Report.

“Hay prices and grain prices are down and energy prices are down” particularly for natural gas, he said.

USDA this month lowered its average farm price for corn, soybeans, and wheat for the 2009/10 marketing year by a range of 20 to 30 cents per

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 $14.00-$32.76 $23.80 $22.00-$33.00 $29.02 n/a n/a This Week Last Week 36,111 19,948 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $47.88 $47.76 $35.43 $35.34

Change 0.12 0.09

USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers

This week 84.23 84.33

Prv. week 84.17 84.48

Change 0.06 -0.15

This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) This week Prev. week Change 98.16 98.63 -0.47

Lamb prices Confirmed lamb and sheep sales This week 619 Last week 768 Last year 630 Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $91-$100. Good and Choice 1-2: 60-90 lbs., $109. Slaughter Ewes: Utility and Good 1-3: $28-$30. Cull and Utility 1-2: $28.

Export inspections (Million bushels)

ing a teleconference hosted by the CME Group.

“Corn end users have a different set of factors as they have to compete with ethanol. I think they should look at seasonal charts” and focus on their return on investment, he said.

Overall, Meyer believes the reduction in input prices won’t be enough to put livestock producers back in the black.

USDA this month estimated prices for the current quarter of

just $39 to $40 per hundredweight for barrows and gilts (compared to the average of $47.84 last year), $83 to $84 per hundredweight for choice steers (compared to the average of $92.27 last year), and in the high-$10-range for Class III milk, which is well below the cost of production.

Meyer said he believes the livestock industry must continue to contract before profitability will return.

Illinois Corn Marketing Board elects officers

CME feeder cattle index — 600-800 Lbs.

Week ending Soybeans Wheat 09-10-09 10.2 21.5 09-03-09 12.0 17.5 Last year 8.8 21.2 Season total 17.3 221.9 Previous season total 10.0 373.0 USDA projected total 1280 950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

bushel. It also reduced its soy meal price estimate by $10 per ton to a range of $250 to $310 per ton.

Meanwhile, the average hay price last month reportedly reached its lowest level since June 2007 (see graphic).

Hay prices have received downward pressure from lower grain prices and good pasture conditions that recently were rated 52 percent good to excellent, according to Meyer.

“Producers this fall may want to look for some opportunities to lock in some costs or at least put a floor under costs (using options) the best they can,” he said.

USDA this month raised its estimate of feed and residual use of corn by 50 million bushels.

Overall, crop production this year was projected to set a new record for soybeans (3.25 billion bushels) and wind up as the second-largest corn crop on record at 12.95 billion bushels.

End users “are going to get some opportunities to buy oats and wheat at relatively low prices,” said Jim Bower, market analyst with Bower Trading, dur-

Corn 40.5 47.7 31.9 65.7 44.5 2200

Jim Rapp, a grain producer from Princeton, has been elected chairman of the Illinois Corn Marketing Board (ICMB) for 2009-2010. The Bureau County corn producer has served on the board since August of 2004. He represents corn producers in District 4, which is comprised of Bureau, Lee, Marshall, Putnam, Stark, and Whiteside counties. Rapp replaces Donna Jeschke of Mazon.

Other officers elected to ICMB leadership are: vice chairman, Scott Stirling of Martinton; secretary, Jim Robbins of Peotone; and treasurer, Bill Christ of Metamora.

A new director appointed to the board is Lou Lamoreux of Lanark (District 2). Lamoreux represents corn producers in Carroll, Jo Daviess, Ogle, Stephenson, and Winnebago counties.

Four incumbents elected to a new term on

the board were: Donna Jeschke, representing corn producers in District 5 (Grundy, Kankakee, LaSalle, and Livingston counties); Kent Kleinschmidt, District 8 (Cass, Fulton, Logan, Mason, Menard, Peoria, and Tazewell counties); Leon Corzine, District 11 (Christian, Effingham, Fayette, Montgomery, and Shelby counties); and Larry Hasheider, District 14 (Bond, Clinton, Madison, Monroe, St. Clair, and Washington counties).

ICMB is a group of 15 farmers elected from across the state charged with creating opportunities for increasing Illinois corn value and use. The board administers the state checkoff program; identifies and invests in market development, research, and commercialization activities; and evaluates the impact each investment generates.

FarmWeek Page 15 Monday, September 21, 2009

PROFITABILITY Corn Strategy

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

Yield hikes not likely The September USDA crop report provides the first useful insight into the production potential for both corn and soybeans.

It’s not the yield/production numbers that are important, but the specific data USDA released in projecting those yield/production forecasts.

The plant and ear population numbers for corn and soybean pod counts for soybeans give the industry an insight into what one might expect in subsequent

Basis charts

USDA reports.

Even then, there are surprises as USDA collects a new set of basic data from the fields each month.

And the data collected provides a more accurate insight into yield potential.

The corn plant population is well defined, but the viable ear population and ear size can change.

Because the ear/plant ratio is so high this year, we don’t expect ear counts to go up.

The initial implied ear weight appears to be a fair starting point.

If the growing season is extended again, it could go slightly higher, but we doubt the final yield comes in more than 2 bushels above September’s 161.9. And a reasonable argument could be made that it may decline slightly.

Because of the lagging development, the soybean pod count could still go somewhat higher, but probably no more than 2-3 percent.

Given that USDA started at a record high pod weight, we’d be shocked if pod weights didn’t come down. And, given those weights are so far above average and those in recent years, they could drop more than pod numbers go up.

As a result, the yield forecast could drop as much as 1-2 bushels, enough to cause a significant tightening in the fundamental structure.

At worst, it’s difficult to envision a higher yield.

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Cents per bu.

2008 crop: We still are inclined to hold inventories until after har vest, or use a marketing strategy that would keep pricing open until later this year on inventories you may still own.

2009 crop: The trend in corn has shifted, with prices moving above key moving averages. However, action could remain choppy with weather uncertainties and fresh supplies entering the pipelines.

Use rallies to $3.40 on December to price at least half of the corn you need to sell at harvest. We aren’t planning additional new-crop sales until later this year.

Fundamentals: The recent surge in prices was tied to a frost threat in the northern Midwest. Even though it was removed on subsequent forecasts, there’s still a chance frost could reduce yield potential slightly. Problems with China’s crop may not boost exports this year, but will limit the amount the Chinese might export, if any at all.

Soybean Strategy 2008 crop: Now that the old-crop premium has all but disappeared, plan to hold remaining inventories until after harvest if you have storage space. If not, price them when November futures are above $9.50.

2009 cr op: T his past week’s surge out of an important support on November futures was a good sign the 8-9 week low might have been seen. Still, it’s possible the $9 support could be tested again before prices move higher. If you need to price soybeans for har vest deliver y, use rallies above $9.50. But, as long as you can store beans, hold off making additional sales until after harvest.

Fundamentals: Even though USDA raised its soybean yield forecast, there’s reason to believe it won’t go significantly higher, and eventually could drop lower. Frost is said to have hit the Chinese crop, cutting output enough to boost imports higher yet this coming year. Early planting

has started in Brazil, but fullscale planting is still more than a month away.

Wheat Strategy 2009 crop: Wheat appears to have shifted into a choppy, sideways trend. Support is mostly coming from other markets. Before one can say the trend has turned up, Chicago December futures need to close above $4.81. We still advise holding off sales, expecting better pricing opportunities later this fall or winter. Even before advising

catch-up sales, we’re going to see if Chicago December futures can attempt to rally back above $5.

Fundamentals: Fundamentally, wheat continues to contend with abundant supplies and slow export business.

Some pockets for concern have popped up in Australia and Argentina because of drought conditions. India’s plantings are forecast to decline, too.

However, world inventories will still be adequate if those countries don’t have bumper crops this year.

FarmWeek Page 16 Monday, September 21, 2009

PERSPECTIVES

Growing our own energy The U.S. is beginning to grow its energy.

Renewable energy consumption jumped to a record 7.3 percent of the total U.S. 2008 energy consumption, according to preliminary estimates from the Energy Information Administration (EIA).

In other words, of the 99.305 quadrillion Btu U.S. energy consumed, 7.301 quadrillion Btu was renewable energy.

Fossil fuels were down to a low of 83.436 quadrillion Btu (84 percent) and nuclear fuel consumption increased to 8.455 quadrillion MARK Btu (8.5 percent).

JENNER U.S. energy consumption also has leveled off. Back in 2000, total energy consumption hit 98.975 quadrillion Btu for the first time.

For the last 10 years, U.S. energy consumption has come within 2 percent of 99 quadrillion Btu. The 2007 energy consumption of 101.554 quadrillion Btu was the highest level ever.

The EIA divides the 7.301 quadrillion Btu of renewable energy consumed into the following divisions: biomass, geothermal, hydroelectric, solar, and wind. Biomass energy contributed 3.884 quadrillion Btu to 2008 U.S. energy used for 53 percent of the renewable energy. Biomass energy includes biofuels, waste, and wood fuels.

Of the biomass category, biofuels supplied 1.413 quadrillion Btu. Ethanol energy produced 0.809 quadrillion Btu, which was a 14 percent increase over 2007 ethanol energy.

EIA also included a residual energy value of 0.563 quadrillion Btu locked in distillers grains. These two values account for 97 percent of biofuel energy consumption. The other 3 percent was supplied by biodiesel fuel and conversion losses.

Waste-derived energy, such as landfill gas, combusted trash, and methane digesters, supplied only 0.431 quadrillion Btu in 2008. Meanwhile, wood and derived fuels supplied 2.041 quadrillion Btu. While this was the largest component of biomass fuels, it

was the only one that had a net decrease from 2007.

The decline likely was related to the economic slowdown of the housing industry.

The other four sources Art by Sharon Newton of renewable energy supplied the remaining 47 percent. Geothermal energy supplied 0.358 quadrillion Btu. Conventional hydroelectric supplied 2.453 quadrillion Btu. This was down because droughts, floods, and water disputes reduced surface water flow used for hydroelectric power. In 2006, hydroelectric supplied 2.869 quadrillion Btu. That decrease in hydro electricity nearly equals the total of all waste-derived energy in 2008.

In 2008, solar sources contributed 0.091 quadrillion Btu. However, remember this “tiny” number still represents 91 trillion Btu. Wind energy supplied 0.514 quadrillion Btu. This amount also seems a bit underwhelming. Although this number appears small, it represents a 50 percent increase in wind capacity from 2007.

It’s important to note there always is a lag time of several years between the time an energy project begins operation until it is registered in EIA’s dataset at full capacity. Projects that started construction in 2008 may not register a full year of energy production until 2010.

Total U.S. energy consumption has leveled off. Renewable energy use is increasing, and fossil fuel use is decreasing.

Though it may seem slow, we are beginning to grow our energy.

Mark Jenner is chief analyst with Biomass Rules of Greenville. His email address is mjenner@biomassrules.com.

Where have all the locusts (not cicadas) gone?

Once upon a time, insects called locusts wreaked havoc upon vegetation growing in what is known as the Great Plains region of North America.

Locusts are the type of insect that most people call grasshoppers. But these are not your average run-of-themill hoppers. No, these grasshoppers are what scientists call migratory locusts.

To many people in the United States, the word “locust” brings to mind insects that fly around in treetops and produce a humming sound. These insects are properly TOM called cicadas.

TURPIN However, cicadas and grasshoppers are totally different insects, but a historical twist of fate resulted in the incorrect use of the name locust.

When early European settlers, who as it turns out really didn’t know much about insects, landed on the shores of the New World, they encountered great masses of cicadas. The settlers knew something about gigantic swarms of a type of grasshopper called a locust in the old world, so the insects were dubbed with that name.

Of course, the first naturalists who visited the new world quickly recognized that those locusts weren’t locusts; they were cicadas. Nonetheless, the incorrect name has persisted in many quarters to this day.

When swarms of migratory locusts land, they devour crops and other vegetation. In the United States, it was reported sometimes the chewing locusts even ate clothes off the line. Railroad tracks sometimes became so slick from crushed locust bodies that trains couldn’t move because of lack of traction.

While periodic swarms of migratory locusts had no doubt moved across the western plains for eons, their devastation became a major problem only when early settlers began to grow crops.

North American settlers of “The Little House on the Prairie” ilk weren’t the first people to suffer from the ravages of migratory locusts.

One of the 10 plagues visited upon Egypt preceding the Exodus of the Israelites consisted of migratory locusts that “covered the surface of the whole land, so that the land was dark; they ate up the vegetation of the land, and all the fruit on the trees or shrub in the fields all through the land of Egypt.”

To this day, plagues of locusts still sometimes move across northern Africa, leaving destruction in their wake.

It is difficult to say anything good about migratory locusts. The insects do provide a food source to some humans and were a food item approved under the Judaic law of biblical times. Of course, the spectacular swarms do provide interesting material for “National Geographic.”

However, W. Conner Sorensen, author of a book about the history of

entomology called “Brethren of the Net” adds another benefit for these insects.

Sorensen states that the establishment of the Entomological Commission was due to ravages of the migratory locust, called the Rocky Mountain locust, and this commission marked a turning point in the scientific organization within the U.S. federal government.

So what did the landmark Entomological Commission learn or do? It learned there was a specific breeding ground for the migratory phase of the insects and that weather patterns affected buildup and movement.

What the commission did other than provide information is an open question, even though a few years later the Rocky Mountain locust ceased to be a problem in the United States. In fact, the insect can no longer be found and is thought to be extinct.

So, where have all the locusts gone?

No one knows for sure.

The destruction of the herds of bison removed the animals that might have contributed to suitable breeding sites for locusts. Introduction of largescale agriculture on the eastern slopes of the Rocky Mountains might have also played a role.

Regardless, the Rocky Mountain locusts are nowhere to be found.

Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.

Letters to the editor NAIS should remain voluntary Editor: The Montgomery County Farm Bureau has many reasons for not supporting a mandatory National Animal Identification System (NAIS) program, and agrees with Hancock County that the NAIS should be kept voluntary.

The NAIS program has cost American taxpayers $142 million since 2004 and has registered only about 35 percent of total livestock. When these people are considered, an incredibly small percentage of the people affected by the program have registered.

The NAIS program is not necessary to protect our nation’s livestock industry and food supply, and it is flawed. The program should remain voluntary until USDA can get all the fine details of the program worked out.

We do not support all three phases of the NAIS program — premise registration, animal identification, and tracking the animal’s movements. USDA clearly states that the NAIS program contains all three of these components and has never said it will stop at premises registration.

At a time when livestock producers are struggling, all costs for tags, tag readers, and labor will not be shared by anyone other than the producer. There will be a massive exit from cow-calf portion of animal agriculture if the program becomes mandatory. The paperwork and liability involved will drive many older and marginal producers from the industry.

If USDA were interested in livestock producers, consumers, and animal health, it would look where problems are known to exist.

America still produces the safest protein on earth and can continue to do so without further government intrusion on our family farms.

If you have registered your premises, fine. You have that right. If one chooses not to register, he currently has that right as well. Let’s keep it voluntary.

BRIAN NIEMANN, President, Montgomery County Farm Bureau

Who’s responsible for mislabeling H1N1?

Editor: The article on how to save the pork industry seemed to overlook a very important item: Where did the name “swine flu” originate?

I have heard it was from the World Health Organization. If, in fact, it was, we should all worry about that organization’s competence.

The responsible people should be prosecuted. Some very intense investigating is needed. A class-action lawsuit should be considered.

I suspect it wasn’t a “mistake,” but an agenda to put the pork industry in turmoil. I know some very good hardworking families who went out of business because of this.

When we cause financial harm to others, we or our insurance company pays for it. We should settle for nothing less.

RALPH WILTON, Dahlgren