Farmweek april 14 2014 by Illinois Farm Bureau

Own a beehive or pesticide-sensitive crop? Consider listing your operation on Driftwatch. page 3

Summer grilling could be an expensive proposition given lower supplies of beef and pork. page 5

Thanks to a bitter cold winter, western corn rootworm and bean leaf beetle pressure may be lower. page 9

Federal GMO label bill filed Inside: Livestock section

Monday, April 14, 2014

Three sections Volume 42, No. 15

SURE SIGN OF SPRING

BY DEANA STROISCH FarmWeek

Periodicals: Time Valued

Spring explodes in vivid colors at Matheny Farms & Greenhouses near Farina in Fayette County. Above, from left, owner Jennifer Matheny and daughters, Audrey and Lauren, prepare planter containers for an open house. Right, employees Abbei Thomas, left, and Ann Githinji plant young tomatoes. Jennifer and David Matheny started the greenhouse operation in 2003 with help from their daughters, son, Ryan, and David’s mom, Doris. The family also raises Angus and crossbred cattle. (Photos by Ken Kashian)

State and local governments would be prohibited from passing their own mandatory labeling laws for products made with genetically modified organisms (GMOs) under a bipartisan bill introduced last week in the U.S. House of Representatives. The bill, formally called the Safe and Accurate Food Labeling Act, would give the Food and Drug Administration (FDA) the sole authority to require labeling of foods if they are found to be unsafe or “materially different” from foods produced without GMOs. Agricultural groups, including Illinois Farm Bureau, American Farm Bureau Federation, American Soybean Association and National Corn Growers Association, support HR 4432. “Unfortunately, there are a lot of misinformed people right now who are questioning the safety of GMOs,” said Adam Nielsen, IFB director of national legislation and policy development. “It makes a lot of sense to have the agency that is responsible for the safety of our nation’s food supply be involved in vouching for the safety of GMOs in food products. The

bill would also eliminate the patchwork of laws, which would do nothing more than create more confusion and raise consumer food prices.” The legislation, if passed, would do the following: • Allow companies to voluntarily label foods with GMOs. • Require the FDA to conduct a safety review of all new plant varieties for genetically engineered foods before they are introduced to the marketplace. • Prohibit individual states, and any local government, from passing rules that require mandatory GMO labeling. • Direct FDA to develop a federal definition for the use of the term “natural” on product labels. In Illinois, a bill that would require all foods containing any ingredients made from biotechnology to be labeled as “genetically engineered” stalled in the Senate Agricultural and Conservation Committee. The sponsor of the bill indicated that he will not be pursuing it during spring session, according to Kevin Semlow, IFB director of state legislation.

Export gains give crop markets new life

BY DANIEL GRANT FarmWeek

Crop prices received an unexpected kick last week as USDA released its world agricultural supply and demand estimates (WASDE) report that was bullish for corn and soybeans. Exports provided the main surprise of the report and drove prices higher. USDA raised its export projections from a month ago by 125 million bushels for corn to 1.75 billion bushels, and 50 million bushels for beans to 1.58 billion bushels. “Despite relatively high prices and record harvests in South America, U.S. (soybean) exports have remained strong,

especially to China,” USDA noted in its WASDE report. Traders prior to the report expected record year-to-date shipments of U.S. soybeans would slow due to possible cancellations of shipments by China and competition from South America. “The trade expected cancellations by China that didn’t materialize,” Louise Gartner, market analyst with Spectrum Commodities, said during a teleconference hosted by the Minneapolis Grain Exchange. “Here we are looking at another bump in exports.” U.S. corn exports, meanwhile, continued to rebound in a big way. The current corn export projection more than dou-

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See GMO, page 4

bled foreign sales of a year ago. “We’re definitely seeing a big jump in corn use around the world,” Gartner said. “It think it will be a trend that continues. “One of our biggest competitors was Ukraine,” she continued. “But with all the issues there, (Ukrainians) are having quite a dry spell. They quite likely won’t deliver (corn) on all contracts made or make new contracts. I’d think (the U.S.) will be able to fill those gaps.” USDA in response to the greater crop demand lowered ending stocks by 125 million bushels for corn to 1.33 billion See Export, page 4

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

Quick Takes

FarmWeek Page 2 Monday, April 14, 2014

FORMER AG DIRECTOR TO LEAD PROJECT — Former Illinois Agriculture Director Larry Werries will coordinate the Lake Mauvaise Terre Watershed project in Morgan County, the American Farmland Trust announced last week. “The new farmer outreach program in the Lake Mauvaise Terre Watershed is designed to increase farmer and landowner awareness of farm conservation practices and how they can reduce nutrient and sediment to the lake,” said Michael Baise, Farmland Trust’s Midwest director. The City of Jacksonville, which uses the lake as a reserve water supply, is dredging the lake to remove sediment. Werries will organize a local watershed advisory committee to identify areas which would most benefit from conservation practices. He may be contacted by calling 217-370-2925 or email lwer ries@irtc.net. The Illinois Environmental Protection Agency, the McKnight Foundation and the Walton Family Foundation are providing grants to fund the project.

TOP GMO QUESTIONS ASKED — Do biotech plants cause cancer? That’s the top consumer question posed in a recent national survey by the Council for Biotechnology Information. Questions about allergies, food prices and how seed companies treat farmers also surfaced in the survey. Global market research company Ipsos conducted the national, random telephone survey of 1,006 American adults ages 18 and older. According to Kevin Folta, associate professor of the University of Florida’s Horticultural Sciences Department, “there is no way the subtle and well-understood alterations of a plant’s genes can cause cancer.” He added biotech crops may one day be used to fight diseases. To see other top 10 questions generated by the survey, visit {gmoanswers.com}.

GOT JELLYBEAN MILK? — Milk drinkers who enjoy a little extra flavor in their refreshing beverage can choose from three unique seasonal flavors recently introduced by Carlinville-based Prairie Farms Dairy. Prairie Farms through its new line of Old Recipe Seasonal Favorites recently introduced new thick and creamy flavors— Jellybean, Chocolate Marshmallow and Easter Egg Nog — in time for Spring and Easter. “Consumers are looking for new and exciting flavors of milk,” said Rebecca Leinenbach, sales program director for Prairie Farms Dairy. “Old Recipe Seasonal Favorites put a new twist on Easter’s favorite candy flavors.” Prairie Farms promotes the new milk flavors as a guilt-free sweet treat. Each 8-ounce serving contains 150 calories.

GOVERNMENT

Some bills’ fates certain before legislative break

BY KAY SHIPMAN FarmWeek

State lawmakers determined the outcome of some issues, while others stayed in limbo after the General Assembly last week recessed for a two-week break. Senators and representatives plan to return on April 29. “Over the last many years, final passage days have become soft. A special motion will be made to extend the passage deadline for many bills that weren’t considered,” said Kevin Semlow, Illinois Farm Bureau director of state legislation. That procedure allows legislative sponsors and interested parties to continue negotiations with the ability to amend the bills later, he added. A couple of sponsors pulled the plug on their key proposals. House Speaker Michael Madigan, DChicago, withdrew his proposed constitutional amendment that would have raised the income tax rate on millionaires. Likewise, Sen. Dave Koehler, DPeoria, indicated he does not plan to seek a vote on SB 1666, which would have mandated “genetically engineered” labels on food products containing any ingredients

from biotechnology. IFB opposes SB 1666. During the break, IFB encourages members to continue discussing their opposition to efforts to raise the state’s minimum wage with their representatives and senators. The Senate extended the deadline for a vote on SB 68, which would raise the hourly rate to $10.65. IFB is finalizing details with opponents on SB 3398 that would dovetail state transportation rules with federal trucking regulations. Under the proposal, farmers operating smaller trucks and pulling farm-plated trailers will enjoy the same allowable exemptions as larger trucks with farm license plates. The negotiated language will be added after the legislature returns. Despite attempted negotiations, IFB was not able to reach agreements before the bill deadline on other legislative priorities, but intends to continue discussions. These issues included statewide wind energy construction and deconstruction standards, limiting public utilities use of expedited review for transmission line projects, and expanding approval required to permanently close, vacate or reduce weight limits on roads.

FAMOUS ILLINOIS OLD WESTERNERS SOUGHT — Many famous Old West ranchers, marshals and even bank robbers hailed from Illinois farms. Montgomery County Farm Bureau member Walter “Chick” Bishop plans to write a book about them. Bishop of Litchfield has already done extensive research on the likes of Wyatt Earp of Monmouth and Wild Bill Hickok, who grew up on a farm near Troy Grove. However, he doesn’t want to leave out anyone. If you know historical background on Illinois farmers who went west to seek their fortunes and became famous, call Bishop at 217-324-4651.

(ISSN0197-6680) Vol. 42 No. 15 April 14, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2014 Illinois Agricultural Association

GETTING PUMPED UP ON

STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only)

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PRODUCTION

Page 3 Monday, April 14, 2014 FarmWeek

Driftwatch identifies pesticide-sensitive sites

More sensitive crops, hives are marked BY KAY SHIPMAN FarmWeek

Farmers and pesticide applicators will find more pesticidesensitive crops and beehive locations on Driftwatch, an interactive state website. “Everything (registered) went up in every category this year,” reported Warren Goetsch, bureau chief of environmental programs with the Illinois Warren Goetsch Department of Agriculture (IDOA). Through Driftwatch, farmers and beekeepers voluntarily register, map pesticide-sensitive locations online and provide their contact information

FarmWeekNow.com

Find out if sensitive specialty crops or beehives are in your area at FarmWeekNow.com.

at no charge. The site is intended for commercial operations, not small gardens. Earlier this year, Driftwatch provided locations for 1,309 bee hives; 4,726 certified organic acres and 4,005 organic acres; 1,366 fruit acres; 589 grape acres; 3,041 vegetable

acres; and 429 organic livestock acres. Pesticide applicators may register and sign up for electronic notification when sensitive locations are registered within their service areas. About 80 pesticide applicators registered on the website. Any visitor may use the interactive Driftwatch map and search for pesticide-sensitive sites and contact information. Neighboring farmers, pesticide applicators and others may visit at {il.drift watch.org}. IDOA hopes to increase communication among farmers, specialty growers and beekeepers. Farmers may find locations of nearby hives, denoted by a “b” on the site state map. The telephone number for a beekeeper who owns a particular hive is available by clicking on the “b” icon. IDOA encourages farmers and pesticide applicators to contact beekeepers before applying pesticides so the beekeepers may take precautions. On a related front, the American Seed Trade Association encourages farmers to review safe practices for planting, handling, managing and storing treated seed to minimize the potential risk to the environment, bees and other nontarget organisms. For more information, visit {seed-treatment-guide.com}.

Communication key for beekeepers Beekeepers face a tough challenge in keeping bees healthy. Communication with neighboring farmers and growers plays a key role. Additional tips are listed below. • Use best management practices to monitor hives. • Talk with local farmers and adjust your practices accordingly. • Plan to restrict bees’ crop access during the beginning and end of bloom — key pest management times for blooming crops. • Temporarily restrict bee foraging when farmers are planting or applying pest control. • Register and map hive locations on Driftwatch. Provide contact information for farmers and pesticide applicators. — Kay Shipman

IFB webinar tackles crop insurance changes BY DEANA STROISCH FarmWeek

Crop insurance changes — including a new Supplemental Coverage Option (SCO) — comprised the topic of a live webinar last week. The webinar, hosted by Illinois Farm Bureau’s Doug Yoder, was the second in a three-part series. The final session, scheduled for 8 p.m. Thursday, will cover dairy provisions and livstock disaster provisions of the 2014 farm bill. Starting in 2015, farmers become eligible for additional crop insurance through SCO. But it’s only available to farmers who select Price Loss Coverage (PLC). “That is something you’re going to have to weigh and use as part of your deliberation process to choose your safety net feature,” said Yoder, IFB senior director of affiliate and risk management. Yoder gave an overview of SCO, which does the following: • Allows farmers to insure part of their crop insurance deductible for the first time. • Subsidizes premiums at 65

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Go to FarmWeekNow.com to register for Thursday’s farm bill webinar on dairy programs and livestock disaster provisions.

percent. • Provides protection to planted acres instead of base acres. PLC and Area Risk Coverage (ARC) provide coverage on base acres. • Doesn’t require a threeyear adjusted gross income test or a payment limit, but PLC and ARC do. • Establishes coverage level at 86 percent of county revenue. Indemnities are triggered when county revenues fall below 86 percent. SCO provides less of a benefit for those who have higher levels of insurance, Yoder said. Historically, he said, Illinois farmers prefer individual coverage policies over countybased policies. “Illinois farmers have proven they’re willing to pay for — they prefer — individual lines of insurance, not county,” Yoder said. “I’m not convinced at this point we’ll see a lot of

Illinois farmers willing to lower their individual line of insurance so they can supplement it by maximizing county-based SCO coverage. We’ll see.” Yoder also provided an overview of changes to crop insurance, which take effect in 2015. The changes include: • Additional enterprise unit subsidies are permanent. • Separate coverage levels and enterprise units for irrigated and nonirrigated land are now available. • Yield plugs used to benchmark crop yields increase from 60 percent to 70 percent. • Farmers can eliminate the yield from APH database for an individual year if the yield is at least 50 percent below the 10-year county average. • Beginning farmers can receive an extra 10 percent premium assistance and a yield plug of 80 percent instead of 70 percent. • Farmers who have crop insurance must apply conservation methods to their fields. Most producers, Yoder said, are already in compliance.

The gift that anyone on the go can appreciate.

Treasurer announces ag photo contest Illinois State Treasurer Dan Rutherford announced the second annual photo contest for agriculture images. The deadline is July 9. As part of the Ag Invest program, Rutherford invites students across Illinois to submit their most innovative, scenic snapshot depicting their vision of Illinois agriculture. Ag Invest is the treasurer’s agriculture link deposit program. Contest winners will be featured on new marketing materials for Ag Invest and prominently displayed at the Illinois State

Fair. In addition, top winners in each age group will receive a $100 deposit in an existing Bright Start college savings account, along with other prizes. The treasurer’s office will accept electronic submissions from Illinois students ages 8 to 18. Top photographs will be chosen in three age groups 8 to 10, 11 to 14 and 15 to 18. Each student may submit a maximum of two photos. For more information, visit {Treasurer.Il.Gov} or contact Rebecca Huston at 217-5586217.

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ISSUES

RFA: Rail system in ‘sheer chaos’

FarmWeek Page 4 Monday, April 14, 2014

LEARNING THE ROPES

BY DEANA STROISCH FarmWeek

Above, Jacob Coffin, a member of Heritage FFA (Champaign County) attempts to rescue a simulated victim of a grain bin entrapment. Nick Winegar, a Monsanto seed tech, hosted the booth at last week’s Illinois Farm Bureau & Affiliates Youth Conference in Springfield. Right, More than 400 Illinois FFA members collected 2,573 pounds of food for Central Illinois Foodbank. Assisting with the collection were, from left, John Klemm, IFB District 11 Young Leader; Jared Finegan, IFB Young Leader chair; Bryan Temple, Section 7 Illinois FFA president; Michaela Smith, Section 23 president; Elizabeth Miller, Section 17 president; and August Schetter, state reporter. (Photos by Cyndi Cook)

There’s a difference between field experts and experts in the field.

Recent increases in ethanol prices can be blamed on “sheer chaos on our nation’s rail system,” according to the head of the Renewable Fuels Association (RFA). Bob Dinneen, RFA president and CEO, wrote to Edward Hamberger, head of the Association of American Railroads (AAR), urging him to “do everything in your power to alleviate the current logjam on the rails.” “Nothing has changed with regard to ethanol production costs or efficiencies,” Dinneen wrote. “The only change has been abject failure of the rail system to adequately address the needs of all its customers. The U.S. economy is suffering as a consequence.” The ethanol industry, he wrote, produced an average of 949,000 barrels per day in December 2013. By the first week of March, ethanol production dropped to 869,000 barrels per day. Dinneen suggested the problems are the result of “explosive growth” in railcar shipments of Bakken and Canadian crude oil. He pointed to AAR data that shows crude oil shipments have increased from 9,344 carloads in 2008 to 434,032 carloads in 2013. “Crude oil shipments by rail can — and likely will — go bust just as quickly as they went boom,” he wrote. “As pipelines

GMO

Rep. Mike Pompeo, a Republican from Kansas, introduced the U.S. House bill. Co-sponsors include: G.K. Butterfield, D-North Carolina; Marsha Blackburn, R-Tenn.; Jim Matheson, D-Utah; and Ed Whitfield, R-Ky. “It prevents a mishmash of labeling standards and allows farmers to continue to produce higher yields of healthy crops in smaller spaces with less water and fewer pesticides,” Butterfield said in a statement. “If passed, this will be a big win for farmers nationwide.” continued from page 1

Export

bushels, and 10 million bushels for beans to 135 million bushels. “That’s quite a bit lower (ending stocks projection) than the trade expected,” Gartner said. “It’s positive support for the corn market.” And for soybeans, “it’s going to be tough for USDA to take ending stocks down any more,” she continued. “They’re already very tight.” USDA raised its season average price estimates by a nickel on the high side for corn and at continued from page 1

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are developed to move crude oil out of the Bakken region and Canada, railroads will be left holding the bag.” Dave Loos of Illinois Corn Growers Association said problems on the railroad system have not only affected ethanol, but also shipments of distilled grains and corn. “The good news is, it’s getting better,” said Loos, technology and business development director. During the same time, prices spiked for other commodies, such as propane and natural gas, he said. “You had sort of a perfect storm, so to speak,” Loos said. “We’re now seeing that opening up a little bit. The trains are moving faster, not so concerned about weather. Ethanol prices are starting to come down. So, some of that is taking care of itself.” A long-term solution, he said, would be to build a pipeline to help move the crude oil and free up the rest of the nation’s railroad system. “For a two-month period there at the end of January, February and half of March, transportation issues in this country were huge,” Loos said. “We kind of figured out how important transportation infrastructure — water, rail, pipelines, roads — is to commerce in this country and how it can really impact the price structure of commodities — whether it’s crude oil, whether it’s grain, whether it’s ethanol.”

the midpoint for soybeans. The current price estimates range from $4.40 to $4.80 per bushel for corn and $12.50 to $13.50 for beans. The report wasn’t nearly as friendly for wheat. USDA raised endings stocks of wheat 25 million bushels to 583 million bushels and lowered feed and residual use by 30 million bushels. Wheat exports and season price estimates of $6.75 to $6.95 per bushel were unchanged in this month’s report.

LIVESTOCK

Page 5 Monday, April 14, 2014 FarmWeek

USDA: Meat supplies will remain tight this summer BY DANIEL GRANT FarmWeek

Meat supplies continue to shrink and prices likely will remain high this summer. USDA this month predicted pork supplies in 2014 will decline 1.9 percent compared to a year ago. The agency projected U.S. beef supplies to fall 4.5 percent this year compared to 2013. Tight supplies could lead to higher meat prices at the grocery store. The situation also should maintain pressure on livestock prices. “Prospects for the global beef industry remain positive with further possible upside due to continued pressured beef supply and scarce supply of competing proteins,” said Albert Vernooij, Rabobank analyst. Overall, USDA projects U.S. beef, pork and poultry production this year to decline 1.1 percent. The broiler supply declined due to trends in chick placements and slower than expected growth in the hatchery flock, according to the CME Group’s Daily Livestock Report. Rabobank last week released a report on the global beef industry that predicted a continuation of strong fundamentals and strong global beef demand led by the Chinese market.

Analysts also look for hog prices to remain strong, although larger-than-expected inventory numbers in last month’s quarterly hogs and pigs report placed downward pressure on prices in recent weeks. “I’m still expecting record high hog prices this summer,” Ron Plain, University of Missouri ag economist, told FarmWeek. Meat demand remains strong, and Plain doesn’t see any options for consumers to replace one meat with another. “Pork and beef (prices) are both at record highs,” he said. “There won’t be any obvious bargain shopping for consumers.” U.S. pork production declined so far this year due to significant piglet losses caused by porcine epidemic diarrhea virus. U.S. cattle numbers, meanwhile, have been on a downward trend in recent years due to high feed prices and drought issues in the southwest. “We do have historically small supplies,” said John Anderson, American Farm Bureau Federation deputy chief economist. “It’s not something you turn around very quickly.” The strength in livestock prices could be tempered a bit, though. USDA forecast a 2.8 percent decline in U.S. pork exports this year. USDA projected U.S. beef

Fraley nabs national service award Jim Fraley, Illinois Farm Bureau livestock program director, recently received the National Institute for Animal Agriculture (NIAA) Meritorious Service Award. The group recognized Fraley for his leadership, dedication and contributions to NIAA and animal agriculture. He chairs the NIAA Animal Care Council. Fraley was one of four individuals awarded, including Richard Raymond, a food safety and public health consultant and former USDA Undersecretary for Food Safety; Hailu Kinde, California Animal Health and Food Safety Laboratory; and Dr. Karen Jordan, a veterinarian and dairy farmer from North Carolina. NIAA is a nonprofit, membership-driven organization that unites and advances animal agriculture. Members include farmers, ranchers, veterinarians, scientists, state and federal officials, and business leaders.

imports this year will increase 3.3 percent from a year ago. USDA last week also surprisingly left its estimate of corn feed use unchanged at 5.3 billion bushels, up 22 percent from a year ago despite

smaller herd numbers. Livestock producers are using some of the feed to finish animals at heavier weights. “I anticipate (hog) weights being up,” Plain added. “With fewer pigs out there, it allows

(farmers) to keep pigs on feed longer.” For more information about livestock production and market issues, check out the special livestock section in this issue of FarmWeek.

Livestock disaster program signup begins

BY DEANA STROISCH FarmWeek

Illinois Farm Service Agency (FSA) offices are prepared for livestock disaster assistance program enrollment to begin Tuesday, according to Rick Graden, FSA’s executive officer. Three Illinois FSA employees traveled to Kansas to attend national training on the disaster programs available through the 2014 farm bill, Graden said. Statewide training was held for FSA employees last week. “I feel we’ve developed a pretty good system in Illinois,” he said. “We have seven districts in Illinois, and two people from each district that are advisers” on the livestock disaster programs. USDA officially announced last week that enrollment will begin for the Livestock Indemnity Program (LIP) and Livestock Forage Disaster Program (LFDP). The programs, restored through the 2014 farm bill, cover livestock deaths and grazing losses that have occurred since the previous livestock disaster assistance programs expired Sept. 30, 2011. Enrollment also begins Tuesday for produc-

ers with losses covered by the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) and the Tree Assistance Program (TAP). “These programs will provide long-awaited disaster relief for many livestock producers who have endured significant financial hardship from weather-related disasters, while the program expired and was awaiting congressional action,” said Agriculture Secretary Tom Vilsack. To be eligible for disaster payments, the losses must be attributed to adverse weather events — such as a lightning strike, tornado, extreme heat and extreme cold. Graden said the agency is currently reviewing criteria for “extreme heat” and “extreme cold” to determine whether the criteria are correct and suitable to producers in Illinois. Graden said it’s still unclear when livestock disaster payments will be made, but he hopes it will be soon after producers apply and are approved for the livestock disaster programs. Anyone with questions should contact their local county FSA office, he said.

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www.fssystem.com Peter Timoney, left, University of Kentucky equine professor, presents Jim Fraley, Illinois Farm Bureau livestock program director, with the National Institute for Animal Agriculture Meritorious Service Award. (Photo courtesy of NIAA)

FarmWeek Page 6 Monday, April 14, 2014 Bernie Walsh, Durand, Winnebago County: We missed the recent rains. No rain in two weeks, so fieldwork was well under way here in Winnebago County last week. There are lots of anhydrous tool bars going in every direction, as well as small seeding of all kinds. I think most of us would like a nice rain, but since the ground is drying, everyone is getting as much work done as possible. There was a very good chance of rain forecast for Sunday, so our early season work may come to a halt for a few days. Stay safe. Pete Tekampe, Grayslake, Lake County: Received a couple of sprinkles last week, but no measurable rain. Finally got three, 60-degree days in a row with a couple more coming. Things are starting to turn green. Even some of the wheat is turning, but it looks like we might have some winter damage in the hill spots. Not much fieldwork has been done. Saw some chiseling done on the higher, sandy ground and some more manure spread. The forecast was 70s on Saturday with some showers over the weekend. Just what the doctor ordered – a warm rain to really green things up. They were also forecasting three days with highs in the mid-40s for this week. Old Mother Nature is just trying out our patience.

Jacob Streitmatter, Princeville, Peoria County: A drier week across the county allowed a lot of waterway work, etc., to be done. Some anhydrous started going on Thursday. Since we’ve had no sunshine and cold days, the ground just isn’t right. Brian Schaumburg, Chenoa, McLean County: A few brave souls were able to try some fieldwork last week with NH3 applications, dry fertilizer spreads, preplant herbicide and a few acres of tillage. Soil temps are still in the low 40s, and planting is at least a week away. Tile repairs are in the works, as the cold winter was hard on clay tile. Lining up test plots, finalizing crop plans and looking for that one last item that could help us blow the lid off of yields comprise the work of the day. Corn $4.80, $4.79 fall; soybeans $14.80, $11.79 fall; wheat, $6.26.

Leroy Getz, Savanna, Carroll County: A dry and windy week prompted some “no burn orders” by local fire departments. Fieldwork took off with oats and alfalfa being seeded, and fertilizer and NH3 being applied. Some chisel plowing still brings up frozen ground, but the soil is working easy. I saw some cornstalks being baled, and early commercial potatoes are in the ground. After a long winter, the countryside is waking up.

Steve Ayers, Champaign, Champaign County: Finally looking and feeling like spring has sprung! Corn was planted April 1 at both the University of Illinois Urbana Research Center and Parkland Land Lab for planting date studies. Soil temperature is 48.1 degrees. Farmers were busy super-tuning planters and field equipment, but showers were in the forecast for Sunday into Monday (April 14), and then later this week. Enjoy your Easter Egg Hunt!

Ryan Frieders, Waterman, DeKalb County: The weather is finally starting to improve. The last few days have been warm with warmer nights. On the farm, we spent the week receiving the last seed deliveries. We have also been hauling grain to the river. No fieldwork has been done in the area yet, but the time is getting close.

Wilfred Dittmer, Quincy, Adams County: No dust is flying around our area, but there is a pretty steady stream of the NH3 wagons moving through fields that are dry enough. Tillage has not picked up much speed, and planters are mostly still in the shed awaiting warmer soil and air temps. It’s been a long and cold winter, and I think we’re all ready for some sunshine. Have a safe week.

Ken Reinhardt, Seaton, Mercer County: Fieldwork has started in earnest all over the county. I know of at least one corn planter that started early in the week. Fall-tilled ground is working nicely. There is the potential to get more than 3 inches of precipitation, ending with snow over the weekend. That is enough to keep most planters in the shed. Ron Moore, Roseville, Warren County: No rain to report for last week, so we are definitely dry. We have been leveling fall chiseled fields, and the dust is thick. Tile lines are dry, and our creeks have very small amounts of water in them. It will be hard to turn cattle out to pastures in April this year. The grass has not started to turn green yet. Most NH3 should be done this week and herbicides should be applied after that. We will start planting corn after the next cold front passes.

Carrie Winkelmann, Tallula, Menard County: I saw the strangest thing - farmers planting corn and harvesting corn within 15 miles of each other. Craziness!! Everyone was moving toward planting Thursday. A lot of tillage was being done, anhydrous going on, fertilizer being spread and some spraying. Heads are exploding around the county trying to decide whether or not to plant. We did some garden work — planted potatoes, onions and lettuce. No measurable rain since my last report.

Mark Kerber, Chatsworth, Livingston County: Nice weather gave farmers a chance to get machinery ready. A colder and wetter forecast is scheduled for this week. Seed is getting distributed, and fertilizer/chemical dealers are geared up for fieldwork. When it dries up, everybody will be ready to go at the same time. Markets are creeping up.

Tom Ritter, Blue Mound, Macon County: We finally had a few days of sunshine, which was helpful for drying conditions. Early last week we had about .35 of an inch of rain bringing our April total to 2.35 inches. Still fairly damp and definitely cool soil conditions. Since the forecast was for rain Sunday and cooler temperatures the first of the week, it may dampen some of the spirits. Early planting in cool, damp soils, followed by rain, is not a good scenario for getting the crop off to a good start. Farmers are poised and ready, and by the middle of the week, we will start to see lots of action if the weather permits. You can guarantee after April 15, soil temperatures will increase to a moderate level and get the crop off to a good start.

Ron Haase, Gilman, Iroquois County: The past week was not fit for field activity. A few that did enter the field encountered wet conditions. This week does not look much better with wet and cooler conditions predicted to arrive. It continues to look like we will have a late start to planting. The local closing bids for April 10 were nearby corn, $4.74; new-crop corn, $4.71; nearby soybeans, $14.81; new-crop soybeans, $11.99.

Todd Easton, Charleston, Coles County: We are still in the “hurry-up-and-wait” mode in this area with just a little bit more rain every time the ground gets close to dried out. Another 1.5 inches hit the gauge since the last report, adding a bit more moisture to the ground and pushing back fieldwork a few more days. Coincidentally, the 10-day forecast has caught up with Easter Sunday, and I really hope it gets changed.

Jimmy Ayers, New City, Sangamon County: We had offand-on showers a couple of times last week and not much activity. On Thursday as I reported, we started seeing some tractors in the field and a little bit of corn planted south of us. Everyone is anxiously awaiting warmer weather. Still looks like some cool evenings ahead of us in the 10-day forecast. Not a lot of farmers wanting to get a lot in the ground at this time. Markets seem to be reacting very well. We will know later if this is a high spot or if it’s going to go back on us. Doug Uphoff, Shelbyville, Shelby County: Here in Shelby County, there was very little fieldwork, if any. One farmer near Assumption has more than 200 acres planted and another was planting Thursday. We were getting equipment ready, doing odd jobs and sorting seed for delivery. We are ready to plant whenever the weather cooperates. There are winter annuals starting to green up in the bean stubble, and alfalfa is greening up, too. We were setting some corner posts, and the low spots were plenty wet. The baby lambs are growing fast and so fun to watch. We have some yearling ewes ready to lamb any time. We’ve had 1.3 inches of rain this month. Corn at Decatur, $5.07, fall $4.87, January 2015, $5.01; beans at Decatur, $15.12, fall $12.26, December $12.41; fuel: No. 2 diesel, $3.57; road diesel, $4.04; E10, $3.75. David Schaal, St. Peter, Fayette County: Fieldwork around here was zero percent for the past week. We had .5 of an inch of rain on Monday (April 7) and still trying to dry out from the multiple inches of water we received the week before. Some farmers are finished putting anhydrous on and some have hardly started. After a Thursday night Farm Bureau meeting, I was told there was corn put in the ground in the northern part of the county on some sandy, high ground. Have a good week. Jeff Guilander, Jerseyville, Jersey County: The ground is working like it should and the calendar says it could, but the forecast has everyone scratching their heads. A few daredevils have tried out their planters, but for most of us, the forecast is just too tricky to bet against. The length of the grain lines at the St. Louis elevators tell me a lot of farmers are still focused on the 2013 crop. Maybe this week things will start moving a little faster. Dan Meinhart, Montrose, Jasper County: No fieldwork was done last week. It rained several days. Amounts varied from .5 to 1 inch making already wet fields very wet. The ground is still very cold. Creeks and rivers got back into their banks. It doesn’t look like any planting will take place until May. Continued offand-on showers are forecast thru this week. The wheat is beginning to green up. The second shot of nitrogen needs to be applied fairly soon. Kevin Raber, Browns, Wabash County: Field activities were on hold up to Friday. Sunny, warmer and windy days have helped dry things out, but with the Wabash River still above flood, it’s hard to get dry enough for fieldwork. The warmer days have been good for wheat. It seems to be growing quickly and has good color. Dean Shields, Murphysboro, Jackson County: This past week has been nothing but wet weather down here in southern Illinois. We had several inches of rain and work has come to a halt. We got a lot of anhydrous on and then came the rain. A few acres of corn have been planted, but I don’t know if we would like to have it back in the bag or not. Wheat survived the winter pretty well, and it is greening up right now. With all of the rain, the river is pretty high with only localized flooding. Hopefully, we will dry out this week, and we will get back in the field.

Page 7 Monday, April 14, 2014 FarmWeek Randy Anderson, Galatia, Saline County: Not much to report this week other than if you were a duck, you would be in paradise. Soils are at 110 percent on moisture. Pastures have greened up nicely and the cows are loving it. Saw some topdressing of wheat on Thursday using four wheelers and spreaders. As we get closer to Easter, the weather usually improves, so I’m looking forward to that. Happy Easter to everyone and their families.

Dave Hankammer, Millstadt, St. Clair County: This past week was a cool, damp one with some light showers leaving about .3 of an inch of rain to start the week. Daytime temps eventually reached a high of 80 degrees for the week with some light showers Thursday evening to dampen the soil surface again. Little field activity occurred this week due to wet field conditions. The local co-op thought some fertilizer or herbicide applications may happen by the end of the week, but only in select fields suitable for traveling. Local grain bids were corn $5.00, soybeans $14.79 and wheat $6.65. Have a safe week.

Ken Taake, Ullin, Pulaski County: Basically, there has been no field activity since my last report. We had more than 2.5 inches from Thursday (April 3) through Tuesday (April 8). The fields were just too wet. Showers were forecast for Friday and during the weekend, so it sounds like it may be a while before we manage to get into the field. Farmers are doing their last minute equipment preparation, and everybody is pretty anxious to get things started for this year. Please take time and be careful when we do finally get into the fields.

ICGA president: Slow start to planting not a concern, yet Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.

BY DANIEL GRANT FarmWeek

Most farmers this year will be done with their taxes before they plant a single kernel of corn. Individual tax returns are due this week (Tuesday, April 15). Meanwhile, most planters remained idle last week due to cool and wet soil conditions, except Gary Hudson for a handful in south central and southern Illinois. Gar y Hudson, a far mer from Hindsboro and president of the Illinois Corn Growers Association (ICGA), remained unfazed about the slow start as of last week. He believes farm-

ers still have plenty of time to plant their corn before some could consider switching to beans. “I don’t know that we’re going to be late this year,” Hudson told FarmWeek. “I think we could be on time.” The situation so far is eerily similar to last spring when cold, wet conditions delayed planting through most of April. Illinois farmers last year planted just 1 percent of their corn crop as of April 29. But all it took was one optimal planting window and farmers planted most of their corn. Illinois farmers last year planted a record 57 percent of the corn crop in one week — from May 13-20. They also planted 18 percent of the soybean crop that same week for good measure. “I think everybody is geared

up to put it (the corn crop) in in a week or so,” Hudson said. “I think (planting intentions) are established. I don’t think there will be much of a surprise unless it starts raining and doesn’t quit.” USDA last month projected U.S. farmers will make a big switch from corn to beans this s p r i n g. S oy b e a n p l a n t i n g s nationwide this spring were projected to climb 6 percent,

while corn acres were projected to decline 4 percent. The shift shouldn’t be as pronounced in Illinois, though. Farmers in the Prairie State were projected to plant 11.9 million acres of corn, down 1 percent, and 9.5 million acres of beans this spring, up 1 percent. Hudson didn’t rule out the possibility, though, of acreage shifts if planting delays linger

through the month. “Quite a few people don’t have their anhydrous (ammonia) on and could switch (to beans),” he said. “But I think most of the decisions were made in November and December” when most farmers ordered their seed and fertilizer. Some farmers started planting last week in the southern half of the state. “A number of fields are starting to dry up,” Hudson added. Illinois farmers planted 29 percent of the oat crop as of the first of last week compared to 15 percent last year and the five-year average of 41 percent. Winter wheat conditions last week were rated 50 percent good to excellent, 40 percent fair and 10 percent poor to very poor.

AROUND THE STATE

FarmWeek Page 8 Monday, April 14, 2014

Tree planting volunteers get Gifford growing again Tears roll down the cheeks of Champaign County Farm Bureau (CCFB) Director Bev Ehler, but her voice remains strong and determined as she surveys changes on her Champaign County farm following a Nov. 17 tornado that literally tore through the lives and businesses of her neighbors and friends as well as the village of Gifford.

BY SUSIE HARBAUGH

Volunteers steady a newly planted tree in the Champaign County town of Gifford recently. Hailing from Taylorville to Chicago, Farm Bureau members, Rotarians, FFA members and others joined together to plant new trees in the town devastated by a Nov. 17 tornado. (Photo by Susie Harbaugh, Champaign County Farm Bureau assistant manager)

Ehler’s determination spearheaded a Farm Bureau effort to bring young trees to residents who suffered so much loss from the storm. Let’s Get Growing Again took on a life of its own when Bill Malone of Ludwig Landscaping added his expertise and enthusiasm. Residents were offered three, free trees and volunteer help in planting, staking, watering and mulching the trees. During a March 22 breakfast at her farm, Ehler passed out flags to residents who were to receive trees. They were instructed to place

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flags where they wanted trees planted. Residents were required to contact JULIE, so that all underground electrical, cable, gas and water lines could be located ahead of time. On April 4-5, more than 180 trees got planted in Gifford and a dozen more took root in the southern part of the county. CCFB members organized two shifts of crews for each portion of the planting process. “This effort signifies healing,” Ehler said, “and our neighbors are just so grateful. I believe that planting these trees shows we really care, and we’re doing something for them that will grow and be there for them for many years to come.” Money for the project has been donated by individuals, businesses, Farm Bureau and the Champaign Rotary Club. CCFB Director Chris Murray secured equipment for the digging process; Raymond Township Director Tim Frick volunteered to coordinate planting in the southern half of the county; director Lee Waters assisted with locating mulch and stakes;

Susie Harbaugh serves as Champaign County Farm Bureau assistant manager.

A publisher of a future book on historic Illinois familyowned farms will feature those certified as centennial or sesquicentennial farms by the Illinois Department of Agriculture (IDOA). The coffee-table book entitled, “Illinois Historic Farms: Honoring the State’s Enduring Heritage of Family-Owned Farms,” will feature histories, photos and stories documenting the state’s agriculture history. Late last year, the publisher, Acclaim Press, mailed brochures to eligible farms. However, a large number of brochures were returned undelivered, and the publisher learned some eligible farm families didn’t receive any

information, according to editor Charles Francis. The publisher will work with local historical societies and ag officials to update its mailing list. Families with eligible farms may receive information by calling the publisher at 877-4272665 or visit {acclaimpress.com}. Farms that meet the criteria still have time to complete IDOA’s certification process and be included in the book, said Delayne Reeves, IDOA centennial and sesquicentennial farms coordinator. For information, call Reeves at 217-524-9129 or visit {agr.state.il.us/centennial-ses quicentennial-farms/}.

and Dustin Ehler held town meetings and staged trees and mulch. CCFB President Lin Warfel served on the committee, while CCFB manager Brad Uken coordinated volunteers. Ehler lost four grain bins, a quonset, a tool shed, trucking equipment, most of her farm equipment, a generator, a pool shed and portions of her home when the tornado struck. So, it’s no surprise to hear she feels close to this project. She looks at the situation the same as when there is a need to help a neighbor at harvest time if he’s suffered some bad luck. “I am just so humbled by the graciousness of all of the people who have come and helped,” said Ehler. “So many people I don’t even know helped in the cleanup last November; and now, the residents who are receiving these trees are just so thankful. It’s just hard to put into words.”

Publisher seeking centennial or older Illinois family farms

Tuesday: • “FarmWeek: the Early Word” • Eric Schmidt, EJS Weather • Jim Fraley, Illinois Farm Bureau: farm bill dairy and livestock disaster webinar • Syngenta Agronomic Services: spring planting Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Jim Bower, Bower Trading • Linda Olson, IFB: Field Moms livestock tour

Thursday: • Jennifer Matheny, Matheny Farms and Greenhouses: greenhouse business • Lauren Lurkins, IFB: EPA waters of the U.S. proposal • David Droste, Illinois Soybean Association: quality relating to soybean meal and prices Friday: • Bob Beck, WinField • Paul Harvey Jr.: “The Farmer in All of Us: An American Portrait” book • Matt Hawkins, Bloomington-Normal Area Convention & Visitors Bureau: COUNTRY Youth Classic • Horse Talk

FROM THE COUNTIES

Page 9 Monday, April 14, 2014 FarmWeek

Harsh winter could reduce pest populations BY DANIEL GRANT FarmWeek

The harsh winter may not have been all bad for farmers. Frigid conditions, which were hard on people, pets, livestock and winter wheat in some areas, also pressured overwintering populations of crop pests ranging from western corn rootworms to bean leaf beetles. Farmers as a result could see lower numbers of some insects in crop fields this year, according to Mike Gray, University of Illinois Extension crop sciences coordinator and entomologist. “We should’ve been helped by the very cold winter (when it comes to managing) those insects that overwinter here,” Gray told FarmWeek. The statewide temperature during the climatological winter (December through February) averaged just 20.8 degrees, which was 8.2 degrees below average and the fourth-coldest on record, according to the Illinois State Water Survey. Pest populations likely affected by the severe winter include western corn rootworms (which lay eggs in the soil), Japanese beetles (which overwinter as grubs in the soil), soybean aphids (which overwinter by laying eggs on buckthorn) and bean leaf beetles (which overwinter beneath plant debris or in wooded areas). “(Corn rootworm) eggs near the surface of the soil in fields that lack snow cover or much crop residue will be far less likely to survive the winter temperatures this past season,” Gray said. Western corn rootworms became a greater concern in recent years as five Illinois counties (Henry, McDonough, Mercer, Sangamon and Whiteside) have confirmed cases of field-evolved resistance to Bt corn. Resistance to Bt occurred in fields of continuous corn where producers didn’t rotate traits. “It has become increasingly evident that some producers have experienced a loss of efficacy with some Bt hybrids in their fields in recent years,” Gray said. The entomologist urged farmers to implement a longterm integrated pest management approach for corn rootworms. Rootworm eggs buried deep in the soil that had more snow or crop residue cover were more likely to survive the winter. Bean leaf beetles likely didn’t fare as well. “I’m guessing bean leaf beetle populations could be way down this year,” Gray said. He predicted populations of corn flea beetles, Japanese bee-

tles and soybean aphids were negatively impacted by the winter as well.

‘Farmers need to understand every field situation is different.’ — Mike Gray University of Illinois Extension entomologist

Populations of migratory insects, on the other hand, weren’t affected by the severe winter. “For migratory insects, it

really depends on what type of spring and summer we have (to determine population levels),” Gray said. Insects that migrate to Illinois from the south each year include black cutworms, potato leafhoppers, fall armyworms, corn earworms and corn leaf aphids among others. Gray advised farmers to scout every field and update their knowledge about insect identification and knowledge prior to this season. “Farmers need to understand every field situation is different,” he added. “Scouting each field is important.” For more information, visit the U of I Pest Management Bulletin online at {bulletin. ipm.illinois.edu}.

ARROLL — Farm Bureau will host a tractor drive July 18 leaving from the Carroll County Fairgrounds in Milledgeville. An antique tractor pull will follow. Cost is $25. Call the Farm Bureau office at 244-3001 to register or for more information. OOK — Farm Bureau will sponsor a boating safety class from 7 to 9 p.m. April 22 and 29, May 6, 13 and 20 at the Farm Bureau office. Cost is $45 for members and $60 for nonmembers. Call the Farm Bureau office at 708-3543276 by Friday for reservations. UPAGE — Farm Bureau will offer two scholarships. One will be awarded to a graduating high school senior and the other to a college student in their freshman, sophomore or junior year majoring

in an ag-related field of study. Application deadline is May 1. ASALLE — Farm Bureau will host an equine meeting at 7 p.m. Tuesday to discuss issues impacting the equine industry. Call the Farm Bureau office at 433-0371 for more information. EORIA — Farm Bureau will sponsor an equine roundtable at 6 p.m. April 21 at the Farm Bureau building. Jody Booher, equine law attorney, will speak. Call the Farm Bureau office at 686-7070 for reservations by Thursday. • Farm Bureau will host a defensive driving course at 9:30 a.m. April 23-24 at the Farm Bureau auditorium. Doug Sommer, Sommer Safety Sessions, will teach the course. Cost is $15. Call the Farm Bureau office at 686-7070 for reservations by Wednesday.

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PROFITABILITY

FarmWeek Page 10 Monday, April 14, 2014

Fuel prices may peak this spring A recent jump in fuel prices could linger for weeks, but should subside by summer. The U.S. Energy Information Administration (EIA) last week in its short-term energy outlook projected fuel prices will peak this spring and retreat by summer. “(Gasoline) supplies generally are adequate but there’s maybe a little tightness as we enter the (peak driving) season, leading to some of the price increases we’ve seen,” said Adam Sieminski, EIA administrator. Unplanned outages at oil refineries around the world this month reduced production about 2 million barrels more than average, according to Sieminski. The national average gas price increased 12 cents in the past month, according to AAA’s daily fuel gauge report. The price of E85 (85 percent ethanol) jumped 40 cents from an average of $2.85 to $3.25 per gallon. Drivers could see some relief at the pump in coming months, though. EIA projected fuel prices this summer will average $3.57 per gallon for gas, down a penny from last summer, and $3.87 per gallon for diesel, 2 cents low-

BY DANIEL GRANT

er than a year ago. Overall, the average price of fuel this year was forecast to decline 6 cents per gallon for gas and 7 cents for diesel compared to last year. The forecast for lower fuel prices was driven by expectations of a slight dip in crude oil prices. EIA projected the average price of West Texas Intermediate oil will decline from $97.91 per barrel in 2013 and $95.60 in 2014 to $89.75 per barrel next year. World oil (Brent crude) prices were projected to decline from $108.64 per barrel last year to $104.88 this year and $100.92 by 2015. “The idea that oil prices could go down is tied to sup-

Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $39.98-$92.41 $52.13 40 lbs. (cash) $120.00-$138.00 $135.40 This Week 59,995 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 43,790

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $119.01 $125.49 -$6.48 $88.07 $92.86 - $4.80

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

This week $148.00 $150.00

Prev. week $152.12 $148.00

In some parts of the Midwest, spring activity has begun while preparations are still being made in other parts. Whether you’ve fired up your equipment or it’s still sitting in the shed, good planning can go a long way in making for a successful spring. Fuel quality management Inspecting storage equipment, including tanks, pumps, filters and hoses prior to filling only takes a few minutes and ensures they are in good working order. Be sure to correct any issues to reduce the risk of problems either at the storage tank or in tractors or other equipment. You should also test for the presence of water and remove it if found. This can eliminate potential in-field downtime. Chris Salrin Premium products There’s an old adage that “you get what you pay for.” That is certainly true with respect to fuel and lubricants. As emission regulations have become more stringent, engine manufacturers have been forced to tighten tolerances and increase injection pressures. These changes to the engine warrant use of a premium fuel in order to ensure optimal performance. Unlike a premium diesel fuel, conventional No. 2 diesel fuel lacks the additive technology that prevents power loss and poor performance as a result of these tighter tolerances and higher pressures. Beyond fuel needs, today’s engines also require premium lubricants because of increased engine temperatures. Nonpremium lubricants can fail to protect critical engine components at higher operating temperatures. Factor in rising fuel costs, more expensive engines, associated components, and using premium diesel fuel and lubricants makes even more sense. Through robust additive packages, a premium diesel fuel and a premium lubricant can provide more hours of operation per gallon and protect critical fuel system components from premature failure. Price risk management Similar to using fuel quality management practices and premium products, having a price risk management plan in place is good business. Planning the purchase of your fuel needs, including the use of out-of-season and in-season pricing strategies, will allow you to better predict and manage your fuel input costs. Beyond these simple recommendations, your local FS energy specialist, who is trained on the latest in fuels, lubricants and services, can help you create and implement an overall energy management plan that meets the needs of your operation.

BY CHRIS SALRIN

M A R K E T FA C T S

Recipts

Plan your work, work your plan

Change -$4.12 $2.00

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week $178.30 $178.09 $0.21

Lamb prices Negotiated, wooled and shorn, 118-169 lbs. for 148-185 $/cwt. (wtd. ave. 163.98); 170-203 lbs. for 146-160 $/cwt. (wtd. ave. 158.08)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 4/03/2014 18.7 22.3 51.6 3/27/2014 18.6 18.6 52.6 Last year 16.2 28.8 10.5 Season total 1494.6 975.0 933.9 Previous season total 1225.6 821.5 433.0 USDA projected total 1495 1125 1450 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

ply and demand,” Sieminski said. North American oil production was projected to increase due to growth in U.S. shale oil production and from Alberta, Canada, oil sands. Meanwhile, Americans could log more driving miles this year as the economy recovers. But EIA projected just a small increase in gasoline demand as the additional highway miles could be offset by improved fuel efficiency. “(Petroleum production) should keep pace with liquid fuels consumption,” Sieminski said. “It should result in a modest decline in world crude oil prices.” Consumers won’t see immediate price relief, though. Gas prices were projected to peak at $3.66 per gallon by next month before slipping to $3.46 by September. Meanwhile, natural gas and electricity prices were projected to increase this year and in 2015 compared to last year. The Henry Hub spot price of natural gas was projected to average $4.58 per thousand cubic feet this year, up 74 cents from 2013.

Chris Salrin serves as GROWMARK’s energy sales and marketing director. His email address is csalrin@growmark.com.

Future looks bright for ag colleges

It’s no secret that agriculture enrollment at the University of Illinois and University of Missouri hit new highs this year. “Enrollment is higher than ever. We have 2,800 undergraduate students. Three or four years ago, it was 2,300,” Bob Hauser, U of I college of agricultural, consumer and environmental sciences dean, told St. Louis Agribusiness Club attendees last week. “It’s a direct reflection of demand for agricultural students. We see a continuation of this trend over the next few years. The future looks very bright.” Thomas Payne, dean of MU’s college of agriculture, food and natural resources, echoed Hauser’s statements. Ag enroll-

ment at MU increased 41 percent during the last seven to eight years. The college boasts about 4,000 undergraduate and graduate students. A post-graduate survey at MU showed 93 to 95 percent of graduates find jobs in their desired field with six months after graduation. Payne noted the statistics further prove “agriculture is the place to go.” Before addressing the club, the deans provided a recruitment workshop for high school and community college students, parents, ag and science teachers, guidance counselors and administrators. “Whether you attend Illinois or Missouri, our schools feel like

family. Not only are we a family within the college, but also among a network of ag colleges,” Hauser said. Payne advised students to follow recommendations contained in the book, “Fish! A Remarkable Way to Boost Morale and Improve Results.” The four main tenets include: • Choose your attitude, and pick a good one. • Play, literally. • Be present in the moment. • Make somebody’s day. Take an opportunity every day to help someone. Rita Frazer, RFD Radio Network® anchor, contributed to this report.

PROFITABILITY

Page 11 Monday, April 14, 2014 FarmWeek

CASH STRATEGIST

Spring planting — a historical perspective

The extremely cold, snowy winter the Midwest just had to endure may offer some useful guidelines to the farming and trading industries during this planting season. In Illinois, this winter was the coldest since 1977 and the snowiest since 1978. In Iowa, it was the coldest and snowiest since 1978. The aftermath of those winters may offer some insight into the pace of planting this spring, as well as the outcome of those crops. We’ve included 1979 as well because it was another in a string of relatively harsh winters — just not as bad as the prior two. Since the 1970s, we have moved the average planting pace forward by a week to 10 days. But as we learned last year, planting a crop later than we had become accustomed to does not necessarily cut yield potential significantly. Into early May last year, the pace of corn planting actually lagged the average pace of planting in the 1970s. Even after the first full week of May, it mostly lagged those three

comparable years. At worst, it matched 1978, and that particular year seems to best fit this winter’s weather experience. In the three noted years — 1977, 1978 and 1979 — corn yields were 94.4 percent, 103.3 percent and 110.9 percent of trend, respectively. It is interesting to note that 1977 yields were low coming off an El Nino that had been in place since summer 1976. The popular wisdom is that Midwestern yields are good during an El Nino because of mild temperatures and good moisture. But that year also was at the end of a low sunspot period, another phenomenon that seems to have some correlation to yields. Interestingly, soybean yields were good that year, along with the two following years, fitting with the general relationship between El Nino and yields. The years 1978 and 1979 were neutral years, dominated neither by El Nino nor La Nina. The broad message from looking at that period is that yields were good even though there were some early season planting delays, 1978 and 1979 in particular. We learned that again last year, as well as how quickly we can plant a crop given a window. And this year’s drier soils may hold down prevent plant acres, too.

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Corn Strategy

ü2013 crop: Even though the new USDA supply/demand nu m b e r s we r e b e t t e r t h a n expected, a 1.3 billion bushel carryout is not tight, and doesn’t warrant higher prices by itself. Use rallies above $5 on May futures to make catch-up sales. Check the Hotline occasionally to see if we add to them. ü2 0 1 4 c r o p : U s e r a l l i e s above $5 on December futures to make catch-up sales. We expect additional pricing opportunities, but they may not come until summer, and may not necessarily be as good. vFundamentals: The passing of the USDA supply/demand report puts the focus of the trade on weather, planting conditions and the planting pace. Even though spring has not emerged early like it has in many recent years, there’s still plenty of time to get the crop in the ground relatively quickly. Other than southern Indiana/northern Kentucky, soil moisture is relatively dry, too. There’s also some doubt whether the U.S. can reach the new USDA export forecast.

Cents per bu.

Soybean Strategy

ü2013 crop: No matter the domestic tightness, the news out of China may effectively end the rally in the soybean complex. Meanwhile, Brazilian prices remain at a steep discount to the U.S. We do not recommend owning inventory. ü2014 crop: The demand news out of China is as important to the new-crop market. It could mean our fall shipping program gets off to a slow start this year. Use rallies to get sales to recommended levels. vF u n d a m e n t a l s : T h e import and export side of the mix were both impacted last week. A ship with 2.7 million bushels of Brazilian soybeans landed at New Orleans. At the same time, credit issues and poor processing margins caused Chinese processors to default on 500,000 metric tons of U.S. and Brazilian soybeans. Talk circulating the trade indicates there could be defaults on another 1 to 1.5 million metric tons of soybeans. Those will have to find another home, some of which could be the U.S.

Wheat Strategy

ü2013 crop: Demand is w a n i n g f o r U. S. o l d - c r o p exports, a trend proven by t h i s we e k ’s d i s a p p o i n t i n g sales that totaled only 1.54 million bushels. Eg ypt tendered for wheat late last week, but again took wheat f r o m Ru s s i a , U k r a i n e a n d Ro m a n i a . S a l e s s h o u l d b e wrapped up by now. ü2 0 1 4 c r o p : R a i n w a s expected for the lower Plains over the weekend. There is continued worry over a winter crop that has been rated only

35 percent good or excellent. Soft red wheat is not in the best shape either. Be comfortable with having 50 percent of newcrop wheat sold. vFundamentals: We are likely to see that fund traders have trimmed their bullish bias toward wheat. Chicago wheat futures have declined 20 to 30 cents since the March 31 stocks and plantings re por ts. U.S. expor ts will have plenty of competition in the 2014-15 marketing year. Healthy stocks are expected for the European Union, India and Brazil, among others.

PERSPECTIVES

FarmWeek Page 12 Monday, April 14, 2014

Who’s influencing your decisions?

Illinois farmers relying on government to back approved technology in international markets Imagine a world where regulators in a far off place, perhaps Beijing or Brussels, decide what herbicides farmers use in Illinois. Sounds far-fetched, doesn’t it? UnfortunateJOHN REIFSTECK ly, it is closer to reality than you might think. This spring farmers will be able to plant seed containing Syngenta’s Agrisure Duracade. This trait adds another badly-needed tool to help combat resistant corn rootworms. Unfortunately, it is not approved in China or the European Union, and farmers are being asked to sign a pledge agreeing not to ship it to those regions. We are also being advised to harvest and segregate the grain from other hybrids, and plant buffer crops around the corn to prevent accidental combining with other approved biotech varieties. Grain handlers like ADM, Cargill and Bunge have said they will limit handling grain possessing the trait to avoid

market disruptions. This is not a new issue. Chinese approval of biotech events has always lagged approval in the United States. What is different is the potential growth of our corn exports to China at the same time as a number of new, important, biotech traits become available to U.S. farmers. We truly live and operate in a global marketplace, and the actions of one importer can significantly impact our decisions year in and year out. The implications reach beyond the farm gate into the supply chain, inhibiting movement of new technologies introduced to improve efficiencies, enhance crop production and meet growing demand for corn worldwide. Harvesting and segregating grain, either on the farm or at the elevator, is inefficient and costly — for all involved in the process, including the purchaser. There are also unknown consequences, including the potential disruption to many tools we will need to deal

John Reifsteck, GROWMARK Inc. president and chairman of the board, notes Illinois farmers face challenges when international markets don’t approve new technologies. (Photo by Ken Kashian)

with weed resistance, soil erosion and other production issues — issues that could be addressed through new technologies. That is how regulators in foreign lands can influence the products we use on the farm. Although we have nearly two decades worth of experience planting these crops, biotechnology continues to be a controversial subject. It’s a subject that illustrates how much farmers need the U.S. government to work with China and other trading partners to harmonize the regulatory environment so everyone can take advantage of the benefits new technologies offer. In “The World is Flat,” Thomas Friedman introduced the idea of globalization and the world as a level playing field, where all involved have equal opportunity. That may be true for most forms of commerce, but in agri-

culture, we’re still dealing with customers who won’t accept new technologies and use the biotech approval process as a trade barrier. These are not just theoretical issues for the GROWMARK system. Every day, we work with farmers to pick the best seed and other technologies to help them grow their crops in a sustainable environment. Our system is a major purchaser of the grains that enter the marketplace, including export channels. We need collaboration with our customers to resolve this and other issues like it. GROWMARK, FS and Farm Bureau are on the same page in advocating for free and fair trade, and an open market for all commodities. John Reifsteck serves as chairman of the board and president of GROWMARK Inc. He operates a grain farm in western Champaign County.

American farmers need new weed management tools

For centuries, farmers have fought weeds that rob soil of nutrients, sunshine and water destined for food plants. Weeds, by their nature, are very good at developing DEAN resistance to CAMPBELL almost any tool farmers use to combat them. It’s the weed’s job to survive and adapt. It’s the farmer’s job to take what the weed wants and make sure the plant gets it instead. For the past decade, farmers have had a new tool in their weed management arsenal — biotech crops and their accompanying herbicides. These products allowed us to greatly control weeds, while also reducing tillage, fuel and time required to fight weeds. Naturally, over time, some weeds develop resistance. Currently, industry experts estimate that herbicide-resistant weeds infest about 65 million acres and cost farmers about $2 billion a year.

Unfortunately, the U.S. regulatory process for biotech crops, once a shining example of efficiency based upon a timely and science-based process, has bogged down. KEVIN This resulted MILLER from activist and political pressure based on fundamental misconceptions regarding both the new products and the U.S. approval process. Even more alarming is the fact that Argentina, Brazil and Canada have streamlined their approval processes. They now require less than half the time it takes for the U.S. government to approve products. From start to finish, it now takes new products about three years to successfully navigate the U.S. federal approval process. This inefficient system places us at a competitive disadvantage to foreign farmers, even though the agricultural products were developed in the U.S. by American companies.

During the last five to seven years, it’s gotten harder and harder to control some weeds, particularly marestail and waterhemp. Another weed, Palmer amaranth, is getting close to our farms. We’ve noticed the weeds not only resist glyphosate, but also several, once useful, post-applied herbicides. In response, Dow Enlist and Monsanto Xtend were developed. As any mechanic knows, if you have the correct tool, you can complete the job much easier. Companies, universities and farmers need to continue developing new products to help farmers address growing global food demand. Timely product approvals by the U.S. regulatory system represent the first step in the process. Today’s crop production, as it always has been, remains a moving target. Cultural practices need to continually adapt to the everchanging environment we work in. As biological obstacles to current agricultural technologies evolve, farmers must evolve with them in a

responsible manner. Biotechnology allows farmers to easily control historical pests. Old weed species that were a bane to many farmers are now almost nonexistent as are some insect pests. Farmers must be allowed to use the best technology available to help grow crops economically in an environmentally responsible manner. American farmers are the most productive in the world, and agriculture is one of the only American industries with a trade surplus. This is no doubt due to farmers’ access to the best research and tech-

nology American investors can afford. No industry can remain productive and competitive for long if the proper tools are delayed or withheld for reasons, not based on science, but rather on a fundamental misunderstanding of the technology and the regulatory process.

Dean Campbell farms near Coulterville in Randolph County and serves on the American Soybean Association Board. Kevin Miller of Teutopolis farms in Effingham County and serves on the Illinois Farm Bureau public relations ACTION TEAM.

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