Freezing temperatures in the state last week, including light frost in parts of Southern Illinois, didn’t dash hopes for a bountiful wheat harvest. .......4
By using a professional forester, a landowner can improve his financial bottom line as well as his stand of timber, according to a forester. ................................................5
a neW stuDy concludes a container-on-barge freight shuttle prog ram is feasible and would provide Illinois farmers greater access to global markets. ............6
Monday, April 16, 2012
Two sections Volume 40, No. 16
Corps tightens belt, prioritizes lock projects BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
As Congress considers paving the way for future lock investments, the U.S. Army Corps of Engineers is working to prove it can be a responsible investment manager. Corps navigation program manager Jim Walker believes that, “properly focused,” Congress’ next federal Water Resources Development Act (WRDA) can “set the course for the Corps for the next 25 years.” Walker hopes to see “a significant uptick” in navigation funding in the federal fiscal 2013 budget, citing a proposed increase in civil works spending ideally as “the end of a trend” of declining annual river funding. Federal funding is only part of the equation, he said, arguing Congress must deal with challenges related to the industry’s Inland Waterways Trust Fund, which taps barge fuel taxes to supplement Corps lock construction/repair funds. A bipartisan measure now in the U.S. House would simultaneously boost trust fund revenues through an industry-supported tax hike and hold the Corps to greater accountability in lock planning and construction.
The Olmsted Lock and Dam at Paducah, Ky., is at the center of controversy over approval of and future funding for Midwest river infrastructure. Project cost was projected at $775 million in 1988, with completion expected by 2000. Since then, the U.S. Corps of Engineer has spent at least double that amount and suggests work may not be finished until 2024. In the background, center, is a catamaran barge which transports large construction materials from a fabrication area on land to the dam site on the Ohio river. (Photo by Ken Kashian)
The need for expanded lock funding has been overshadowed by highly publicized reports of major cost overruns and delays in construction at the Olmsted Lock and Dam near Paducah, Ky., on the Ohio River. “It’s an absolute necessity
to avoid the kind of cost overruns and time delays that some locks have experienced over the last 20 to 30 years,” Illinois Soybean Association transportation consultant Scott Sigman told FarmWeek. “The demonstration of responsible spending and time-
ly engineering, construction, and operation as part of any future public infrastructure investment is a necessity for (new) projects to advance.” Walker acknowledges the Corps’ role in making the best use of tight project funds. Budget pressures have
BY DANIEL GRANT FarmWeek
create a frost (on plants).” Matt Montgomery, a University of Illinois Extension small farms/local foods educator, said he does not expect much lasting frost damage to emerged corn even though some plants were discolored. “Most of our corn should be fine so long as we do not see intermittent frosts over the next one and a half to two weeks,” Montgomery said. The growing point for corn is not above ground until about the V5 to V6 stage. So pre-V6 plants should be safe from a single
frost event, according to the U of I educator. Montgomery reported the most mature corn he saw last week was between V3 and V4. A lot of corn is up in
required the agency to prioritize navigational needs on low-, moderate-, and high-use waterways. Five waterways nationwide account for 95 percent of the U.S. “ton-miles” of freight moved by barge. Sixty-five locks report fewer than 1,000 commercial lockages per year. This year, within a system of 236 Corps-controlled locks, only four have projects at the planning phase, and construction is under way at four more. The Corps has prioritized efforts to reduce scheduled lock closures and “disruptions” that are causing an increased number of nonscheduled shutdowns on highuse waterways. It has analyzed the “probability of failure” at each lock based on its current condition, the time needed to repair individual lock components such as gates or valves, how long an individual lock shutdown would halt navigation, and the economic consequences of lock closures. The agency also is evaluating existing lock and dam staffing. Walker anticipates “less than 24/7” operations at some sites in the future. “We’re not closing systems; we’re just looking at reducing spending,” he said.
Freeze doesn’t cool torrid planting pace Overnight temperatures dipped below freezing at least two nights in a row across much of the state last week. But the frost didn’t cool off the hot start to corn planting at many locations. “We’ll finish up (corn planting) today,” Dereke Dunkirk, a farmer from Morrisonville in Christian County, said Thursday during a cell phone interview from his tractor. “We really don’t have any concerns about the frost,” he continued. “It’s so dry there’s really no dew on the ground to
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Southern Illinois but Edwards County farmer Robert Anniss last week said he did not think any corn in his area was mature enough to sustain much damage from the cool overnight conditions.
“Corn is not tall enough to be hurt yet,” he said. “The growing point is still below the ground.” Anniss said he’s amazed by how much corn is in the ground already but waited last week to plant his own crop due to the freezing temperatures and forecast for rain. “It could be hard getting anything up,” he said. Elsewhere, though, a number of farmers were close to finishing corn planting and some even planted beans last week, Blake Roderick,
See Freeze, page 4 Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, April 16, 2012
Quick Takes CORN REFERENDUM PASSES — Illinois corn farmers last month overwhelmingly approved an increase in the state’s corn checkoff rate. The Illinois Department of Agriculture announced last week that the referendum passed by a vote of 1,137 to 317. The measure won approval in 71 of Illinois’ 102 counties. The corn checkoff rate on Oct. 1 officially will increase from 3/8 of a cent per bushel to 5/8 of a cent per bushel. Corn farmers still will have the right to request a full refund. The referendum was requested by the Illinois Corn Marketing Board. It marks the second raise for the corn checkoff since the Illinois Corn Marketing Act was established by growers in 1982. COUNTRY AIDS TORNADO VICTIMS — Country Financial clients in Harrisburg and Ridgway reported 416 property claims with total losses of $10 million to $12 million after the area was struck by a powerful tornado that ravaged the area and caused loss of life on the last day of February. Fourteen homes were uninhabitable and another 10 were total losses. Country recently donated $10,000 to the Southern Illinois Community Foundation, a 12-year-old nonprofit organization aimed at improving Southern Illinois communities. The funds were earmarked for the Harrisburg Disaster Relief Fund, and donations to the fund are being used to ensure Harrisburg residents have food, water, and clothing. “Everyone rallied to help begin clean up and start rebuilding. We dusted ourselves off, rolled up our sleeves, and got to work,” said Kevin Sherwood, Country Financial southeastern agency manager. WAREHOUSE SURRENDERS LICENSES — A St. Clair County grain warehouse surrendered its operating licenses to the Illinois Department of Agriculture (IDOA) last week. IDOA has scheduled an informational meeting for grain creditors at 6 p.m. Wednesday in the Knights of Columbus Club, Millstadt. Handy Feed Handyscape Inc., Millstadt, has been closed since April 2 when IDOA discovered the company had insufficient assets to meet the Illinois Grain Code requirements. IDOA took control to protect farmers’ interests and will be able to liquidate assets and pay valid grain claims now that the licenses have been surrendered. Handy Feed was a member of the Illinois Grain Insurance Fund and all grain deposits at its facility are protected. Handy Feed had a storage capacity of 153,000 bushels. In addition to corn, soybeans, wheat, milo, and oats, the company also sold feed, seed, and other agricultural products.
(ISSN0197-6680) Vol. 40 No. 16
April 16, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STATE
State’s new conservationist no stranger in the field “Ivan has worked well with districts and the association. We look forward to continuIvan Dozier, who will become the next ing to have a positive relationship,” Nichols state conservationist, is well known for work- said. ing with farmers and communities to find Illinois conservation continues to make solutions and improve natural resources. strides but faces challenges ahead, according University researchers even used his sucto Dozier. cessful watershed efforts in Macoupin County “The budget will still be No. 1 on our list as a case study. of challenges. The government is tightening Dozier, an Illinois native and University of its budget and with a new farm bill, there will Illinois graduate, will assume his new post on be restructuring,” Dozier speculated. April 23. Over the past 28 years with the NatIf government reduces conservation fundural Resources Conservation Service (NRCS), ing, the new state conservationist said he he has worked in “wants to use seven field locathose dollars as tions and the smartly as we state office, most ‘The budget will still be can.” recently as assisDozier added N o. 1 o n o u r l i s t o f tant state conserthat NCRS staff is challenges.’ vationist for proidentifying congrams. He sucservation — Ivan Dozier ceeds Bill Gradle strengths and Illinois state conservationist who retired earlisome weaknesses, er this year. which he declined Dozier “realizes that the key to achieve to share. His goal is to discuss efforts that are natural resource goals is to have the ability to working and to strengthen them, he said. work with landowners and others to help “We don’t want our conservation programs increase conservation practices on the land,” to be an impediment to getting conservation according to Illinois Farm Bureau President on the land,” Dozier explained. Philip Nelson. Currently those conservation efforts are Dozier also will be unique — Illinois’ first finishing a second ranking period for the state conservationist to have spent his entire environmental quality incentive program NRCS career here. (EQIP), and Dozier was hopeful selected His background and experience — he applicants will be notified in the next couple proudly notes he has been in every county — of weeks. will eliminate the usual learning curve. In addition, the state staff recently com“Illinois is a big and diverse state from pleted ranking of conservation security pronorth to south and east to west. Being from gram (CSP) applications. The next step is for here and going to the university here, I know local NRCS staff to contact highly ranked the climate and the resources,” Dozier said. applicants to arrange field reviews. The Association of Soil and Water ConserIn the midst of a busy time, Dozier said he vation Districts was pleased with Dozier’s is honored to lead Illinois NRCS. “I am excitappointment, said Rich Nichols, the group’s ed to get out there and put passion into conexecutive director. servation,” he said. BY KAY SHIPMAN FarmWeek
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A motorist and farmer give each other plenty of room to pass on a country road in Piatt County. The Illinois Department of Agriculture and the Illinois Department of Transportation are reminding motorists to be alert for farm machinery traffic on roads. Studies show that left-turn, rear-end, and passing collisions are the most common types of accidents involving motorists and farm machinery. Farmers are reminded to make sure their equipment has the proper safety markings. Lights are required half an hour after sunset to half an hour before sunrise when farm machinery is traveling on roads. (Photo by Ken Kashian)
Page 3 Monday, April 16, 2012 FarmWeek
the coNsumer
Market needs could outweigh animal ag misinformation BY DANIEL GRANT FarmWeek
Animal agriculture has come to an interesting crossroads in recent years. It seems attempts to limit the industry’s ability to produce and expand are ramping up at a time when demand for many animal-based products has never been greater. Ultimately, the market/consumer demand likely will dictate what farmers produce and how they raise it in the future, according to Jim Fraley, livestock program director for Illinois Farm Bureau. Fraley spoke recently at the National Institute for Animal
Agriculture (NIAA) annual conference in Denver about the Illinois Farm Families’ effort to connect consumers to farmers to improve knowledge about food production. “A lot of times we see kneejerk reactions to issues like asking far mers to stop u s i n g r- BST or to stop using gestation stalls,” Fraley said. “The problem is these demands often are made by well-intended people who have a lot of misinformation (about production agriculture).” Stalls are used to protect pregnant and nursing sows and their piglets in swine production while r-BST is a natural
FDA would limit antibiotic use on livestock farms The Food and Drug Administration (FDA) last week proposed a plan that would curtail the use of “medically important antibiotics” in food-producing animals. The voluntary initiative is aimed at preserving the effectiveness of medically important antimicrobials for treating disease in humans. “It is critical that we take action to protect public health,” said FDA Commissioner Margaret Hamburg. Those in the livestock industry, however, argue there is no scientific proof that the use of antibiotics in animals reduces the effectiveness of antibiotics in humans. Numerous peer-reviewed risk assessments, including one by FDA itself, showed a “negligible” risk to human health from antibiotics use in food-animal production, the National Pork Producers Council (NPPC) reported. “FDA did not provide comFarmWeekNow.com pelling evidence, nor did it state Listen to an RFD Radio interview that antibiotics use in livestock w i t h N P P C c h i e f v e t L i z production is unsafe,” said R.C. Wagstrom at FarmWeekNow.com. Hunt, NPPC president. FDA intends to have animal health manufacturers during the next three years do away with all labels that are used for growth promotion or feed efficiency. “FDA is allowing the (animal health) companies to do research to demonstrate (certain antibiotics) prevent disease,” Liz Wagstrom, NPPC chief veterinarian, told the RFD Radio Network. “If they do that, they could get a new label claim, and those (antibiotics) could be used in the future.” FDA also proposed that farmers who use antibiotics for disease prevention in food-producing animals acquire a veterinary feed directive (VFD). “The guidance could eliminate antibiotics uses that are extremely important to the health of animals,” NPPC’s Hunt said. “And the requirement for VFDs could be problematic, particularly for smaller producers or producers in remote areas who may not have regular access to veterinary services.” Wagstrom predicted the FDA guidance could have numerous unintended consequences. “I’d expect to see more sick pigs, increased cost of production, and maybe slower growth,” she said. “And we could see negative food safety impacts.” Wagstrom said if there is an increase in the number of sick pigs, it could increase the prevalence of salmonella and other human health threats in meat products. She also noted the amount of antibiotics used in swine production has been greatly overestimated by opponents. A 2001 report titled “Hogging It” from the Union of Concerned Scientists (UCS) claimed farmers each year use 10.3 million pounds of antibiotics. However, results of a Kansas State University study found hog farmers annually use about 1.6 million pounds of antibiotics for growth promotion, nutritional efficiency, and disease prevention. “The UCS report should have been titled ‘Fabricating It,” Hunt added. “Pork producers do not overuse antibiotics.” — Daniel Grant
hormone-based product that maintains higher milk production in dairy cows and has been approved by the Food and Drug Administration. “Knee-jerk reactions often create bigger problems, which we’ve seen with the horse harvesting issue,” Fraley said. Since Illinois banned the slaughter of horses in 2007, the number of abandoned horses has skyrocketed while the number of calls related to horse welfare has increased by roughly 400 percent, according to the livestock program director. Another example of consumer concerns not necessarily backed by facts that is influencing the industry occurred recently when South Dakotabased Beef Products announced it would cease production of lean, finely textured beef (LFTB).
The product, which is 90 percent lean meat, was used in ground beef. U.S. ground beef producers now will have to source more lean products from other countries, according to Fraley. “There has been a lot of misinformation about the LFTB issue,” Fraley said. “If somebody asked me if I want ‘pink slime’ (the nickname for LFTB) in my burger, my reaction would be ‘absolutely not.’ “But when you find out what LFTB is — a lean beef product — then it’s just fine.” Ultimately, Fraley and other speakers at the NIAA conference believe booming demand will shape how food is produced in the future. If the world’s population increases as projected by 3 billion people in the next 40 years, world meat production will have to increase by 73 per-
cent, according to Terry Barr, senior director of CoBank’s Knowledge Exchange Division. Meanwhile, Teresa Scanlan, Miss America 2011, told those at the conference that, with many farmers currently between the ages of 45 and 65 years, a new generation of farmers will be needed to replace about 100,000 farmers who will retire in the next decade. “We need to raise a new generation of farmers, educate and inform the public about the misinformation of modern production agriculture, and fight for strong farm policy,” Scanlan said. Fraley added, “What all of these things do is emphasize the fact that we’re going to need technology and new tools to make sure we can feed the growing world’s population.”
Ag research feeds economy, hungry global populations BY MARTIN ROSS FarmWeek
University of Illinois ag economist Craig Gundersen acknowledges funds are tighter than ever in both the public and private sectors. That’s why budget-conscious lawmakers should bolster partnerships and innovation in ag research crucial to addressing pressing issues of the day, including domestic and global hunger, Gundersen argued. The 2012 farm bill will set the stage for future federal research funding. House Ag Committee Chairman Debbie Stabenow (D-Mich.) and Ag Committee Ranking Republican Pat Roberts (RKan.) already have proposed creating a new Foundation for Food and Agriculture Research to “support and complement” USDA research, education, and economics efforts. The non-profit foundation would attempt to leverage private capital to spur research ventures in plant and animal health, production, and products; food safety, nutrition, and health; renewable energy; environmental issues; agricultural and food security; and ag systems and technology. Gundersen wears two hats, interacting with the Illinois Soybean Association (ISA), USDA, and others as executive director of the National Soybean Research Laboratory (NSRL) and, as a U of I ag economist, focusing on food “insecurity” and assistance, frequently with USDA support. Much of NSRL’s work is in response to ISA research needs, including “the developing questions farmers are posing in Illinois about how to improve yields and profitability,” Gundersen noted. ISA and the lab also explore broader issues such as changes in and challenges facing the livestock sector, bringing animal scientists and economists together. “ISA funds help build upon the work USDA has funded and help researchers realize new areas of research for USDA funds,” Gundersen told FarmWeek. “We sort of embody the perfect combination of using USDA to leverage private funds and vice versa. “It is becoming more and more of a necessity to do this. Government sources of funding are
perhaps not as robust as they used to be. That also includes state funding. We have to be more entrepreneurial in searching out other funding.” The Stabenow-Roberts bill would set up the foundation as a non-profit 501(c)3 organization under an appointed board of directors that represent diverse ag sectors. It would require annual financial audits and stringent oversight procedures to ensure foundation accountability and transparency. Beyond domestic ag needs, NSRL also addresses a variety of international concerns. The lab has collaborated with Cargill to conduct a global “corporate social responsibility” conference in Nicaragua, and with the World Initiative for Soy in Human Health to address hunger-nutrition issues especially in the developing world, sometimes in cooperation with the U.S. Agency for International Development. Meanwhile, Gundersen, the economist, has teamed with a University of Kentucky colleague in a USDA-supported $5.5 million study of U.S. childhood hunger “and how best to alleviate that hunger.” “In particular, there is very low food security among children,” and the administration, in fact, has proposed to eliminate juvenile hunger by 2015, he noted. Gundersen sees growing corporate interest in attacking the crisis, as evidenced by the involvement of ConAgra, Kellogg’s, Kraft, Walmart and other industry giants in the charity Feeding America. But large-scale, big picture research is crucial to effectively target relief efforts and “leverage the interests of private foundations,” he said. “We see this as really a very exciting area of research,” Gundersen said. “If the government wasn’t funding it, probably no one else would.”
FarmWeek Page 4 Monday, April 16, 2012
CROpS
Wheat crop has ‘good potential’ in Illinois BY DANIEL GRANT FarmWeek
Freezing temperatures around the state last week, including light frost in parts of Southern Illinois, didn’t dash hopes for a bountiful wheat harvest. Robert Anniss, an Edwards County Farm Bureau member who also farms in Wayne County, the morning after a frost last week said his wheat appeared to withstand the frost fairly well. “I think it’s still got the potential to be a really good crop,” Anniss told FarmWeek. “It’s got a real good, deep green color, we’ve got good stands, and I don’t see any signs of health issues,” he noted. The National Agricultural Statistics Service Illinois field office last Monday (April 9), prior to the frost, upgraded the condition of the Illinois
wheat crop to 84 percent good to excellent, 14 percent fair, and just 2 percent poor or very poor. The portion of the wheat crop rated good to excellent as of April 2 was 78 percent. Many wheat growers could start harvest early this year as the crop is maturing quickly due to the abnormally warm March. “It (the wheat crop) is well ahead of where it normally is this time of year,” said Steve Ebelhar, agronomist at the University of Illinois Dixon Springs Ag Center. “It’s maybe two or even three weeks ahead of schedule.” Anniss said some of his wheat crop already was heading last week. “I’ve never seen wheat head this early in April,” said Anniss, who has grown wheat nearly every year since he started farming in 1967.
Andrew Spray, FS certified crop specialist at Wabash Valley Service Co. in Browns, left, discusses the condition of the winter wheat crop with Robert Anniss, a farmer from Ellery and an Edwards County Farm Bureau member, during a crisp April day last week in this Southern Illinois field. Anniss believes his wheat still has the potential to be a really good crop despite two nights of frosty temperatures last week. The crop this year is about two to three weeks ahead of schedule, with some already heading out (inset), due to warm spring temperatures. (Photos by Ken Kashian)
New directory to help farmers find custom manure applicators A new directory soon will help far mers locate custom manure applicators, according to Dale Baird, who works with the University of Illinois Extension certified livestock manager program. Baird said he hopes to
complete the directory by mid-May and to post the finished document online. In the future, the infor mation may be posted at {http://web.extension.illinois.edu/manurecentral}. A significant amount of manure from large-scale
Freeze Continued from page 1 executive director of the Pike and Scott County Farm Bureaus, reported. Dunkirk estimated 75 percent of the corn crop was planted in his area as of last week. Statewide, 17 percent of corn was planted as of the first of last week compared to the five-year average of 1 percent. Two percent of the crop had emerged. One percent of the soybean crop had been planted in the state last week, which was on target with the five-year average, while 91 percent of the oat crop was in the ground, compared to the five-year average of 30 percent. The majority of alfalfa, 79 percent, was rated in good to excellent condition the first of last week in Illinois with 18 percent in fair shape and just 3 percent in poor or very poor condition.
livestock operations is custom applied in Illinois, he noted. Because fall and spring soil conditions and the timing of planting may not allow a wide application window, some far mers use custom applicators to apply their livestock manure.
Many of the custom applicators operating in the state have participated in Extension’s voluntary custom manure hauler training program and know recommended practices for environmental protection and emergency response procedures, according to Baird.
The new directory will help producers find these custom applicators. Custom manure applicators interested in listing their business ser vices in the directory should call Baird at 815-978-2844 or send an e-mail to dlbaird@illinois.edu.
FROSTED CORN
Some corn plants, such as these in Champaign County, were stunted and discolored last week after overnight temperatures dropped into the 20s on consecutive nights in much of the northern two-thirds of the state. Little damage to emerged corn was expected, however, because the growing point of most corn remained below ground. The soil temperature, which had reached 60-degrees plus at some locations, had dropped to 52 degrees at mid-week in Southeastern Illinois, 47 in the west, 49.5 in the east, and 42.9 in Northern Illinois along near the Wisconsin border. (Photo by Todd Gleason, University of Illinois)
Page 5 Monday, April 16, 2012 FarmWeek
Around IllInoIs
Forester: Timber owners could earn much more BY KAY SHIPMAN FarmWeek
A potential gold mine is growing on Illinois timber land; one that easily could put 25 to 250 percent more money in landowners’ pockets, according to Jay Hayek, a University of Illinois Extension forester. Hayek illustrated with a personal example: “I helped a landowner, and there was more than 1,000 percent difference between what one logger would have given him and what I was able to market his timber for — and we harvested fewer trees.” Currently, Illinois timber owners receive $30 million annually for their trees, and they “are underselling their timber,” Hayek told FarmWeek. Hayek’s best advice for
landowners who want to sell trees? Work with a professional forester, not a logger. “There is a huge difference between a professional forester and a logger. Some people assume they are the same,” Hayek said. He speculated more than 90 percent of Illinois timber owners sell trees without consulting a professional forester. Unlike other states, Illinois has no forester license requirements. To help landowners find professional foresters, Hayek has assembled a list of professional consulting foresters; each has a forestry degree, and many have advanced degrees. The Extension publication is online at {http://web.extension.illinois.edu/forestry/pdf/tf
BioPreferred program boon for Illinois firms? BY MARTIN ROSS FarmWeek
USDA has moved a range of new “biobased” products to the top of federal shopping lists, improving market prospects for Midwest manufacturers and the farmers who supply them. Last week, Ag Secretary Tom Vilsack announced 13 added biobased product categories eligible for USDA’s BioPreferred
certification-labeling program. As a result, more than 1,500 new biobased products reportedly can be offered for preferred purchasing by federal agencies or contractors. Biobased products are composed entirely or significantly of renewable plant, animal, marine, or forestry materials. BioPreferred-designated items meet or exceed minimum biobased content requirements. USDA’s announcement came a year after it unveiled the first 60 BioPreferred products. One of the first companies to receive certification, Elk Grove Village’s Clear Lam Packaging Inc., uses plant-based plastics as part of its Project EarthClear program aimed at reducing release of “fossil carbons” into the atmosphere. New BioPreferred categories include air fresheners and deodorizers, asphalt-tar removers, asphalt restorers, blast cleaning media, candles and wax melts, electronic components cleaners, non-carpet floor coverings, foot care products, furniture cleaners, inks, packaging and insulating materials, pneumatic equipment lubricants, and wood and concrete stains.
That’s potentially good news for companies such as Bloomington’s Franmar Chemical, which produces soy-based products that include parts washers, degreasers, and boat cleaners; and paint, asphalt, auto molding, and undercoating removers. Franmar has worked closely with the United Soybean Board, and was one of the original “stakeholders” that helped USDA set biobased content requirements for the BioPreferred program. Franmar customers include the U.S. Navy, the Postal Service, the National Parks Service, and the Cherokee Nation. “There is so much focus on biobased,” Franmar marketing manager Jason Davenport told FarmWeek. “We talk to people at (industry) trade shows, and they bring it up.” On a national level, DuPont has several BioPreferred products, including those made from Sorona, a “renewably sourced” fiber; and Zemea Propanediol, a petroleum-free chemical used in personal care products. Last year, DuPont developed a “household sustainability index” based on consumer attitudes about biobased and related products. DuPont research indicated eight in 10 North American consumers would “definitely” or “likely” buy such products if they are comparable in cost and effectiveness. DuPont Industrial Biosciences President James Collins calls White House support for the BioPreferred program “a shot in the arm to America’s bioeconomy.” The “Grow It Here, Make It Here Bio-based Manufacturing Act,” sponsored by U.S. Senate Ag Committee Chairman Debbie Stabenow (D-Mich.), would provide added support for the program.
Edgar County timberland was the site of recent logging. (Photo by Ken Kashian)
b-nres-202.pdf} and includes information about selling and managing timber. A consulting forester’s fee may range between 6 and 10 percent of the sale; some charge less and others more, according to Hayek. “Yes, landowners have to pay a commission, but they easily can earn 25 to 250 percent more money” by working with a forester, he said. Foresters help landowners market their timber by distributing lists of available trees to many buyers. “Timber is not like corn or soybeans,” Hayek said. “There is no set price. Each tree has a unique value, and 99.8 percent of landowners have no idea about timber value. They’re at a huge disadvantage to loggers who do know the value.” The Illinois Agricultural Statistics Service and the Illinois
Department of Natural Resources publish Illinois timber prices twice a year. The website advises that the reported prices are conservative and should be used only as a guide. The price information is online at {http://web.extension.illinois.edu/forestry/il_timber_pri ces/index.html}. Consulting foresters help landowners develop a legal contract with stipulated provisions for the sale and harvest, Hayek noted. Timber sales come under the Internal Revenue Service (IRS) tax code, and a legal sale is needed for tax accounting purposes, he added. Under a proper timber sale contract, all the money is paid upfront before a single tree is cut, Hayek noted. A consulting forester also monitors the tree harvest to ensure the contract provisions are being followed. If they
aren’t, the forester and landowner legally may stop the harvest, Hayek said. Consulting foresters also help landowners select the appropriate trees to harvest and assist them in better managing their timber property, which increase the value of the stands. “You don’t want to harvest all your best trees. You want to leave quality trees in the forest to perpetuate quality timber,” Hayek said. Consulting foresters also advise landowners on how to improve their timber stands by such practices as removing poorly formed trees. By using professional foresters, landowners can improve their financial bottom lines along with their timber. “If you don’t know the value (of your timber), you’ll get burned,” Hayek concluded.
FarmWeek Page 6 Monday, April 16, 2012
the river
Container-on-barge growing grower opportunity BY MARTIN ROSS FarmWeek
Illinois farmers not only could significantly ramp up high-value exports through the Gulf — they could play a greater role in fueling Midwest shipments. That’s according to a new study from the Illinois Soybean Association (ISA) which concludes that a container-on-barge (COB) freight shuttle program is feasible and would provide greater soy access to global markets. After completion of Panama Canal upgrades in 2014, the canal will be able to handle larger vessels that hold up to 10,000 20-foot containers. As a result, “the Gulf Coast becomes far more attractive for containers that would come down the Illinois-Mississippi River system,” study author Chuck Dillerud said. But potential barge container opportunities depend largely on transportation resources along the contain-
er corridor, according to ISA transportation consultant Scott Sigman. As a companion to the COB study, ISA is assessing key risks to competitive barge transportation. “If you have cargo coming down through the system, it’s fine as long as it keeps flowing. Each lock and dam is its own little pinch point that allows flow up or down, and if any of those points get gummed up in any way, shape, or form, nothing flows,” Sigman told FarmWeek. “We have been in dialogue with the U.S. Army Corps of Engineers to ascertain where any ‘pinch points’ might be. We’re trying to assess the near-term plan and longerterm vision for funding not only lock maintenance and operations but also, ultimately, rehab and future investment.” The COB study also concludes that increased barge flow under such a system would offer new biodiesel opportunities. Sigman cites use of biodiesel blends
among some barge fleets, and argued the study highlights potential for using soy oil in the transportation of beans and meal. Illinois would be a prime beneficiary of increased marine biofuels adoption, given its biodiesel production base and availability of biodiesel feedstocks, he said. COB programs currently are operating successfully in France and the Pacific Northwest along the Columbia River. Sigman anticipates “robust acquisitions and exports” within the soy complex over the coming year not only among Asian buyers but also in European and Mediterranean markets. Barge container shipment would ease both rail and truck traffic, generating less pollution per “ton-mile,” he said. Environmentally sustainable transportation is a growing consideration among foreign buyers, Sigman reported. Efficient highway transportation also is key to Gulf-
bound container movements (see accompanying story), especially along what Sigman calls “the last mile” — the stretch where goods move by truck from their source to rail or from rail to barge terminals or other shipping points. However, amid a current congressional aversion to
local project spending “earmarks,” Sigman suggests Congress may be inclined to build broader systemwide efficiencies into federal highway legislation rather than focusing on improvements at strategic regional freight “nodes” such as Northeastern Illinois.
Rolling on the river A new study (see accompanying story) sees promise in using barges to move containers between Joliet and Illinois River ports in prime soybean growing areas and barging those containers downriver for direct loading onto oceangoing vessels at the Gulf. According to river transportation consultant and study author Chuck Dillerud, significant volumes of grain currently are trucked to the Joliet area to be loaded onto containers and sent by rail to the East and West Coasts. In 2011, only about 100 containers moved by river from the entire length of the Illinois and the Upper Mississippi River above St. Louis. A container-on-barge (COB) shuttle program, using dedicated barges and tows, would change that, Dillerud believes. He sees an economically feasible minimum volume beginning at 200 20-foot containers per week, and argues that could be doubled without corresponding increases in capital equipment. He believes river shipments could be scaled to almost any maximum volume. “The resulting cost to reposition containers from the intermodal hubs to and from Central Illinois growing areas by barge could be significantly less than repositioning them by truck,” Dillerud said. Further, a COB shuttle program from Peoria to and from New Orleans and/or Houston could be feasible at a minimum volume of slightly more than 350 20-foot containers per month, he said. That could be achieved at rates less than those for either shuttle rail or “bulk-plus” container loading at Gulf locations, and competitively with container rail to the West Coast, his study suggested. A Gulf COB program also could be used for “backhauls” of non-time-sensitive bulk commodities such as dry fertilizer or road salt, to make more economic use of empty containers. The study indicated that COB tows could, with proper equipment or modifications, operate on up to 80 percent biodiesel blends. Few modifications should be needed in most cases, and depending on the status of the federal biodiesel blender’s tax credit and other renewable fuels credits, towboat biodiesel may be more competitively priced than No. 2 diesel, Dillerud said. He nonetheless stressed an organizational structure would be needed to operate COB programs. His study suggests developing a shippers’ association aimed specifically at operating the COB venture.
State to spend $10 million to clean up Chicago River Gov. Pat Quinn at a press conference last week with Chicago Mayor Rahm Emanuel and U.S. Environmental Protection Agency (EPA) Administrator Lisa Jackson announced the state will spend $10 million in capital funding to clean up the Chicago River. The estimated $21-million project will include upgrading technology at the North Side and Calumet water reclamation plants. Construction is expected to start this fall with the project to be finished in December 2015. According to the EPA, Illinois needs more than $17 billion in improvements of publicly owned wastewater pipes and treatment facilities, combined sewer overflow correction, and stormwater management. That is the sixth highest amount in the nation. The state will help with projects to upgrade aging systems and to build new waste and drinking water plants around Illinois, according to the governor’s office.
Page 7 Monday, April 16, 2012 FarmWeek
energy
Petroleum group fights cellulosic biofuels mandate BY MARTIN ROSS FarmWeek
With farmers, processors, and key agribusinesses gearing up to make cellulosic ethanol a commercial reality, an
“advanced biofuels” advocate attacks what she deems chicken-and-egg logic regarding federal biofuels mandates. Six biofuels groups have asked a U.S. district appeals
Cellulosic starters: A farm bill guide As Congress mulls the 2012 farm bill, Advanced Biofuels USA outlines “low cost and cost-efficient” guidelines for encouraging viable next-generation biofuels development. Executive Director Joanne Ivancic sees two specific “problem areas” in developing biomass ethanol resources: The challenge of bringing small, non-contiguous, “marginal” acreages together into an energy crop market, and funding promising production and biofuels conversion technologies currently “wallowing in the financing valley of death.” “Farmers are like any other investor,” Ivancic told FarmWeek. “They need to know they have a market or that somebody is going to support them during the investigation-experimental phase. There’s still a lot of experimenting that needs to be done with feedstocks.” Acknowledging budget constraints, she argues her group’s farm bill proposal offers “the biggest bang for the government buck.” Advanced Biofuels USA proposes: • Retaining ag lands. Ag and forest lands vulnerable due to dairy and pulp-paper industry downsizing and residential-commercial development could retain their ag value if they were converted to biomass-biofuel production areas, the association maintained. It supports demonstration programs to convert pasture land to multi-crop perennial grasses, other energy crops, or mixed hardwood forests. Another possibility is development of portable biomass-to-biofuel “precursor” technologies that extract convertible sugars or oils from crops or residues in scattered fields. • Limiting eligible USDA project size and scope to maximize the number of projects supported through available funds. The group recommends limiting eligible project cost to $5 million to $7 million, with a minimum of 30 projects awarded funding per year and federal cost sharing limited to 15 percent. • Encouraging diversity. Projects should focus on producing precursors from non-food sources that could be used in a variety of biofuels-bioproducts production systems. • Development of a “grower-oriented, easily accessed” bio-crop database. That database would tap USDA-U.S. Energy Department information on all aspects of biofuels production. A grower-oriented website would cover crop type and projected yields; grower-supplied information on crop location, plot size, and soil type; available area biomass conversion-biofuel production systems; and biomass transportation costs. • Changes in conservation programs. The Conservation Reserve Program (CRP) should be reformed to include “environmentally sound” biomass production options, the group argued. Options might include perennial grass croppings or selective tree harvesting that don’t interfere with animal nesting patterns or other environmental conditions. Under Advanced Biofuels’ plan, existing government payments could be replaced by a combination of income from the sale of biomass and tax credits. If the value of biomass payments fell below established CRP payments, the difference would be made up through tax credits. — Martin Ross
Wind farm siting, permit program offered
The University of Illinois Extension Local Government Information and Education Network and the Illinois Association of County Board Members and Commissioners (IACBMC) will offer a local government program on wind farm siting and permitting from 3 to 5 p.m. Thursday. The event will be broadcast over a statewide audio-teleconference system through Illinois county Extension offices. Speakers will be David Loomis of Illinois State University’s Center for Renewable Energy; William Shay, attorney and member of the Illinois Wind Energy Working Group; and Rick Bowen of the Ford County Board. Although no statewide requirements exist, Illinois has developed county and municipal codes that establish jurisdiction over wind farm development and regulation. Drawing from personal and professional experiences the panelists will provide an overview of current practices and opportunities for wind energy development in Illinois. Individuals may register online at {web.extension.illinois.edu/fmpt/} or send an e-mail to Kathie Brown, Extension educator community and economic development, at brownlk@illinois.edu.
court to uphold the U.S. Environmental Protection Agency’s (EPA) Renewable Fuel Standard (RFS2) final 2012 rule. RFS2 sets annual fuel industry requirements designed to help the U.S. reach 36 billion gallons of biofuels use by 2022. But the American Petroleum Institute (API) has sued EPA over the 2012 rule, arguing that a required 8.865 million gallons of cellulosic biofuels use can’t be achieved. Advanced Biofuels USA Executive Director Joanne Ivancic suggests the suit is aimed at undercutting development that would reduce oilbased profits — and consumer costs. RFS2 is intended as a “carrot and stick” plan aimed at spurring fuel industry investment in the infrastructure needed to foster next-generation biofuels development, she told FarmWeek. “API is twisting this around, saying ‘If (cellulosic ethanol) is not there, you can’t make us buy it,’” Ivancic said. “They’re not seeing any obligation to try and invest to
make sure it’s there for them to buy. If as a nation, we think this is important, we need to put the money there. “This lawsuit illustrates that the part of the industry with the money and knowledge to put into it is not willing to do so.” Last month, POET-DSM Advanced Biofuels broke ground for a 25-million-gallon-per-year cellulosic plant in Iowa. The plant, which will process corn cobs and residues, is set to launch in 2013. It is one of several being built nationwide. Companies including Warrenville-based Coskata and Denmark’s Novozymes continue to refine technology to cheaply convert energy crops and ag residues. And Monsanto, Archer Daniels Midland Co., and Deere are identifying efficiencies in corn stover collection, storage, and transportation. Meanwhile, California scientists hope to convert seaweed into ethanol using E. coli bacteria. “This is happening,” Ivancic insisted. “It’s gotten pushed back because the policy rug’s been pulled from
under the industry. A number of presidents have supported the idea of biofuels. When George W. Bush said ‘switchgrass,’ the price of switchgrass seed went up five times. “There was a belief that this was happening, efforts for the industry to push itself to do things that hadn’t been done before in the belief the government was going to support them. But now, oil still gets its subsidies, and everything’s been taken away from anything that smacks of biofuels.” The Obama White House has offered biofuels support as a “customer,” via a proposed $510 million U.S. NavyUSDA-Energy Department effort to developed alternative military fuels. Even that program has come under attack from some in Congress, and Ivancic noted project funding has not yet been included in fiscal 2013 congressional appropriations. RFS2 mandates thus are crucial in helping ensure industry investment in new biorefineries or retooling of existing ethanol plants for biomass use, she said.
FarmWeek Page 8 Monday, April 16, 2012
education
Making the grade: More students start at community colleges BY KAY SHIPMAN FarmWeek
Alicia Gardner, a University of Illinois junior in biotechnology-crop sciences, integrates classes with her work as a laboratory assistant and leadership roles in a student organization and a college honors program. But unlike many of her fellow juniors, Gardner is finishing her first year in the College of Agricultural, Consumer, and EnvironAlicia Gardner mental Sciences (ACES). Gardner of Eureka began her college education at Illinois Central College (ICC), East Peoria, before she transferred into ACES last fall. She and her mother, Carol, gave FarmWeek several reasons for Gardner’s decision to attend ICC for two years
before transferring to ACES to complete a bachelor’s degree. At this time of year, many high school seniors and their families are weighing their options and finalizing where they will attend college. “It made economic sense in this day and age,” said Mrs. Gardner. Starting at a community college made it less expensive for her daughter to earn 80 credit hours and she could live at home, she noted. However, Gardner is not an exception on the ChampaignUrbana campus; more students are transferring into ACES, said Laurie Kramer, associate dean for academic programs. “They have good reasons to begin their educations at community colleges and then plan to complete a bachelor degree in ACES,” Kramer said. Kramer, Gardner, and Gardner’s ICC academic adviser, Roger Herriman, emphasized students need to plan not only for a specific field of study, but also to transfer into a specific university. “If they know their intended major and which university, we can make their transition seam-
less,” said Herriman, now a part-time ICC adviser after teaching 28 years at the community college. Currently, ACES has formal transfer programs with 12 community colleges (see accompanying article) and plans to sign an agreement this week with Highland Community College, Freeport, according to Kramer. ACES also has a separate dual-admission, dualcredit program with Parkland College in Champaign. To assist transfer students, an ACES representative meets with students on the community college campuses. To help those students select the community college courses that would meet degree requirements, ACES also provides curriculum guides for every major area of study, Kramer said. “So the goal is after they transfer in two years, they would be able to complete a degree in a two-year period,” Kramer said. “We want to be supportive and help students make the transition.” Gardner credited Herriman with advising her on selecting
ICC courses that helped her fulfill most of her general education requirements. Harriman said he assures students and parents as long as the students know what they want to study and where they want to transfer “we will get you there in good shape and have you in good shape to graduate in four years.” Gardner said she was well prepared for ACES classes and to be a James Scholar for honor students.
Attending community college classes with working parents and other non-traditional students “was a cool experience,” she said, adding, “It kind of makes you appreciate your circumstances.” Gardner said she also has been welcomed by her ACES classmates and as well as members of Sigma Alpha and the Field and Furrow Club. “I have not experienced any ostracism. I found getting involved also has made it easy to get to know people,” she said.
U of I ACES, community college transfer programs The University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) has formal transfer programs with the following community colleges: Illinois Central College, East Peoria Illinois Eastern Community Colleges, Olney, Fairfield, Robinson, and Mount Carmel Illinois Valley Community College, Oglesby Kankakee Community College, Kankakee Lake Land Community College, Mattoon Lewis and Clark Community College, Godfrey Richland Community College, Decatur Rock Valley Community College, Rockford Sauk Valley Community College, Dixon Southeastern Illinois College, Harrisburg Southwestern Illinois College, Belleville Triton College, River Grove ACES plans to sign a formal transfer agreement with Highland Community College on Tuesday. Since 2008, ACES has had a separate dual-admission, dual-credit program with Parkland College, Champaign.
ISU ag students share bright job outlook Job prospects are positive for the Illinois State University (ISU) agriculture students who spoke last week with FarmWeek. The freshmen and students who transferred into ISU’s agriculture programs were optimistic about their futures despite the slow general economy. Robert Dunn of Urbana is working on his second degree — this time in agricultural business. Dunn, who has a degree in political science, returned to college after work at a filling station was the best job he could find. In addition to learning about a wide range of ag-related careers, Dunn said his ISU classes are enhancing his job-search skills, such as handling job interviews and writing resumes. The demand for agriculture business graduates is especially strong, according to Rob Rhykerd, head of the ISU agriculture department. Rhykerd said he received a call last week from an agribusiness seeking to hire eight spring agribusiness graduates, but he didn’t have that number who were without jobs. Freshman Michael Ruffatti of Gardner is preparing for a future in agriculture by majoring in agronomy and crop and soil sciences with a minor in chemistry. Ruffatti said he is considering a career in the seed industry, but his choice of studies will provide “a lot of options.” Junior Ryan Stade of McHenry said he plans to use his degree in agricultural business and agronomy management on his family’s diverse farm. In addition to 2,200 acres of corn, soybeans, and hay, the Stade family also raises specialty crops and runs an agritourism business. Senior Shari McLeod of Chicago called a horticulture career “my high school dream.” McLeod said she is pursuing her goals now that her children have graduated from college. She noted increased interest in nutrition and healthy eating also should be reflected in demand for horticulture graduates. USDA has projected a strong job market for college graduates with agriculture degrees. The ag and natural resource sectors are expected to have 54,400 positions open each year through 2015. — Kay Shipman
Page 9 Monday, April 16, 2012 FarmWeek
frOm THe cOuNTies
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OND — Farm Bureau and Country Financial will host a cookout fundraiser from 10:30 a.m. to 2 p.m. Tuesday, April 24, at the Farm Bureau office. Proceeds will benefit American Cancer Society’s Relay for Life. Pork chops, brats, and pork burgers will be served. Call the Farm Bureau office at 618-664-3100 by Friday to place large orders from businesses. UREAU — Bureau, Lee, and Whiteside County Farm Bureaus will sponsor the Summer Ag Institute II for teachers June 26-27. The theme is “A-Maize-ing Corn.” Cost is $25 for members and $40 for non-members. Certification units may be earned upon completion of the course. Call the Farm Bureau office at 875-6468 by
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May 15 for reservations or more information. OOK — Farm Bureau will sponsor a Shred Day from 10 a.m. to noon Saturday, April 28, at the Rolling Meadows Country Financial building, 4190 W. Euclid Ave., Rolling Meadows. Up to three bankers’ boxes may be shredded. Electronics, including computers, speakers, and laptops may be recycled. However, there will be a $10 charge per monitor. Call the Farm Bureau office at 708-354-3276 for a reservation or more information. • Farm Bureau will sponsor a Gardening on your Balcony workshop from 9 a.m. to noon Saturday, April 28, at the Farm Bureau office. Greg Stack, University of Illinois Extension horticulture educator, will
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WHAT NOT TO DO
discuss raising vegetables and flowers in small places. Call the Farm Bureau office at 708354-3276 by Wednesday, April 25, for reservations or more information. • Farm Bureau is collecting recipes for the 2012 Recipe Collection. Submit your favorite fresh fruit and vegetable recipes to the Farm Bureau office, Attention: Recipes, 6438 Joliet Road, Countryside, Ill. 60525. • For information about Cook County greenhouses, farmstands, and farmers’ markets, visit the website {www.localfarmproducts.org}. ACKSON — A free health screening will be from noon to 3 p.m. Thursday at the Farm Bureau office. Murphysboro Chiropractic Clinic will offer a spine check, weight loss consultation, and a chair massage. Call the Farm Bureau office at 684-3129 by Wednesday for an appointment or more information. ASALLE — Farm Bureau has BBQ pork salt for sale. Cost is $5.50 for members and $6 for non-members. Call the Farm Bureau office for
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Aaron Wetzel, a student at Ashton Franklin Center in Ashton, gains hands-on experience with the problems of texting while driving at a driving simulator sponsored by AAA during the recent Illinois Farm Bureau Youth Education and Agriculture Conference in Springfield. State Police Master Sgt. Kenny Guard, left, demonstrated how texting and driving (which is illegal in Illinois) can distract drivers. Roughly 425 FFA students from around Illinois attended the event. (Photo by Cyndi Cook)
more information. EE — Bureau, Lee, and Whiteside County Farm Bureaus will sponsor the Summer Ag Institute II for teachers June 26-27. The theme is “A-Maize-ing Corn.” Cost is $25 for members and $40 for non-members. Certification units may be earned upon completion of the course. Register at the Farm Bureau office or call 875-6468 by May 15 for reservations or more information. • Dixon Family Dentistry, 1355 N. Galena Ave., Dixon, is participating in the Lee County Farm Bureau local discount program. Members will receive a free dental exam, Xrays, and consultation and a 15 percent discount on dental treatments. Call the Farm Bureau office at 815-857-3531 or the Dixon Family Dentistry at 815-284-1995 for more information. • Lee and Bureau County Farm Bureaus are seeking hole sponsors for the annual Ag in the Classroom golf outing Fri-
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day, June 29. Cost is $100 a hole. Call the Farm Bureau office at 815-857-3531 or email leecfb@comcast.net for more information. NION — The AARP driver safety course will be from 1 to 5 p.m. Monday and Tuesday, April 23-24, at the Farm Bureau office. Cost is $12 for AARP members and $14 for non-members. A discount on auto liability insurance may be given. Call Bob Tyson at 684-5643 by Tuesday for reservations or more information. ASHINGTON — The Women’s Committee will sponsor a cardiopulmonary resuscitation and first aid course at 6 p.m. Thursday, April 26, at the Farm Bureau office. Cost is $10 for members and $15 for non-members. Call the Farm Bureau office at 618-3273081 by Friday, April 20, for reservations or more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 10 Monday, April 16, 2012
profitability
Nobody can beat the ‘Law of the Minimum’ BY SID PARKS
In my position, I often have the pleasure and opportunity to collaborate with producers who are looking to improve their crop production. They may do field trials or testing of various production Sid Parks practices or crop inputs. Many of these projects involve technology of some sort, and I am asked to participate. For example, one might be interested in increasing his seeding rate. At harvest, he may see a response, but frequently does not. His conclusion? “That didn’t work.” In reality, chances are he simply was breaking the “Law of the Minimum.”
The concept was popularized by a 19th century German chemist, Justus von Liebig. The basic theory states that crop growth is controlled by the scarcest (limiting) factor, rather than the total amount of resources available. Liebig used the image of a barrel with staves of varying heights to explain this concept. The volume of water the barrel will hold is only as much as the shortest stave, regardless the height of the barrel or how much water you pour in. If we extrapolate this concept to corn production, increasing plant seeding rate by itself or applying extra fertilizer won’t necessarily increase yields if something else is limiting. One needs to examine the crop production model as a whole. To assist growers in identi-
USDA
Farm Service Agency FSA adopting GovDelivery Farm Service Agency (FSA) offices are moving toward a paperless operation. Farmers are asked to enroll in the new GovDelivery system, which will provide notices, newsletters, and electronic reminders instead of a paper copy through the mail. County committee ballots will continue to be mailed to all eligible farmers. Contact your local FSA office and provide personnel there with an e-mail address and to start receiving farm program information.
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 $33.30-49.66 $40.08 $65.39 $65.39 no longer reported by USDA This Week Last Week 92,445 88,960 *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 $79.66 $77.76 $58.95 $57.54
Change 1.90 1.41
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 122.00 120.79 1.21 122.00 121.08 0.92
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 149.14 151.16 -2.02
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 130-160 lbs. for 145.30-157 $/cwt. (wtd. ave. 154.48).
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 04-05-12 26.4 17.6 23.4 03-29-12 29.5 15.8 31.0 Last year 22.9 28.8 41.1 Season total 1040.1 844.7 976.6 Previous season total 1323.4 1026.7 1046.2 USDA projected total 1275 1000 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
fying treatments or practices that can improve yields, a few years ago our company developed a program called FS GREEN PLAN® Solutions, the Pursuit of Maximum Yield. In 2011, general crop yields were down, but our coopera-
maximum yields. These variables are selecting the proper hybrid, selecting the right seeding rate, proper nitrogen management, and provisions for plant health and nutrients. Leave out some of the mix, and you will probably end up with short staves in your barrel. Your FS crop specialist has experience to help you maximize crop yields. Contact him or her with any questions for your farming operation.
tors achieved positive results over their traditional practices roughly 80 percent of the time. Our longer-term goals are achieving 300 bushels of corn and 100 bushels of soybeans per acre. To properly execute a Pursuit of Maximum Yield study, one must create the proper environment for plants to do well. Assumed for minimum participation are appropriate fertility levels (N, P, K, pH) and weed/pest control. In addition to the basic assumptions, there are five inputs in particular we are interested in managing for
Sid Parks is GROWMARK’s manager, precision farming. His email address is sparks@growmark.com.
tightening of U.S. (soybean) supplies,” Krueger said. In South America, soy crop estimates since November have been reduced by 257 million bushels in Argentina and by 330 million bushels in Brazil due to dry conditions in some areas, Davis reported. Krueger believes U.S. farmers could plant more beans in response to the stronger fundamentals. Any extra bean acres likely would replace secondary crops or come in the form of more double-crop acres, rather than replace corn acres, the analyst noted. “Farmers could drag some acres back to beans,” he said. USDA last week also lowered
ending stocks of wheat by 32 million bushels as wheat has replaced corn in some feed rations. Krueger believes the oldcrop corn market still could have some life to it, though, as demand has yet to be rationed. But USDA projected any tightness in the corn supply could be alleviated as early as August with the start of the new-crop harvest. “The quick start to planting and more intended acres across the South raise the potential for a substantial increase in newcrop corn use before the Sept. 1 start of the new marketing year,” USDA noted in its supply and demand report.
Soy stocks shrink; corn supply could grow
BY DANIEL GRANT FarmWeek
If soybeans weren’t driving the crop markets prior to last week, they’re certainly a leader now. USDA last week cut U.S. ending stocks of soybeans by 25 million bushels and slashed bean production in Argentina and Brazil by a total of 148 million bushels from the previous estimate. Ending stocks of soybeans dipped from 275 million to 250 million bushels as U.S. suppliers filled voids in the world market caused by a shorter-than-expected crop in South America. USDA last week raised its estimate for U.S. bean exports by 15 million bushels to 1.63 billion bushels. “We are looking at a situation where soybeans, rather than corn, could very well become the market leader in the U.S. grain and oilseed complex,” said Todd Davis, American Farm Bureau Federation economist. USDA last week left ending stocks of corn unchanged at 801 million bushels. Many analysts prior to last week’s world ag supply and demand report looked for a reduction in oldcrop corn supplies. “The corn number is bearish,” said Mike Krueger, analyst with the Money Farm, during a teleconference hosted by the Minneapolis Grain Exchange. “Soybeans certainly will be the feature of the 2012/13 marketing year unless we have significant issues with corn this growing season.” Corn supplies could grow if the weather cooperates this season. USDA last month projected U.S. farmers will plant 95.9 million acres of corn, which would be the most corn acres planted in the U.S. since 1937. Meanwhile, soybean plantings last month were projected to slip 1 percent from last year to 73.9 million acres. “I look for a significant
Illinois FSA to start five part-time service centers As a result of reduced resources and staffing, five Illinois Farm Service Agency (FSA) offices will be converted to parttime service centers in mid-July. The five centers are located in Boone, Calhoun, Union, Wabash, and Williamson counties. In each location, the FSA office will be open for business two days a week. The reduced business hours is not intended to impact or change the business hours of other agencies that may be located in the same USDA service center. Based on workload and reduced funding, each of the five centers has a designated maximum staff of two employees, making it difficult to provide full office coverage at all times. All employees will remain employed and be reassigned to adjacent headquarters offices. The transition will occur July 17.
USDA, IRS establish info exchange USDA and the Internal Revenue Service (IRS) have established an electronic information exchange process for verifying compliance with the average adjusted gross income (AGI) provisions for farm programs. Written consent is required from each farmer or payment recipient for the tax review process. No actual tax data will be included in the report that IRS sends to the Farm Service Agency. Participants in Commodity Credit Corp. (CCC) programs subject to average AGI rules must submit form CCC-931 —“Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information” — to FSA to avoid interruption of program benefits. These forms may be obtained from local FSA and Natural Resources Conservation Service offices or online at {http://forms.sc.egov.usda.gov/efcommon/eFileServices/eFor ms/CCC931.PDF}.
Page 11 Monday, April 16, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Corn supplies adequate Whether you agree with USDA or not, it has a valid argument for keeping the corn carryout number at 801 million bushels. That should be more than enough to keep the pipeline adequately supplied until the new crop becomes widely available. The notes that accompanied the latest USDA supply/demand report laid out an argument that the supply of competitively priced wheat and the larger supply of southern new-crop corn will keep the ending stocks of old-crop corn from becoming smaller than projected. From one perspective, that’s the opposite scenario from the one the industry confronted in 1996. Livestock feeders that year were counting on a good wheat crop to supplement what they knew would be a tight supply of corn. But when the wheat crop broke dormancy in 1996, the weather turned dry across the Southern Plains and the South, trimming potential and turning wheat prices sharply higher. The unexpected tightness of those supplies forced livestock feeders to scramble to cover feed needs, resulting in corn prices moving to a new alltime high above $5.50 per bushel. This year, livestock feeders are looking not only at comfortable supplies of competitively priced oldcrop wheat but a good new crop as well. This is especially true in the Southern
Plains, with this year’s hard red winter crop condition about normal at present. And persistent rains continue to improve prospects. As far as wheat feeding, a big, competitively priced hard red winter crop typically boosts wheat feeding significantly in the Southern Plains cattle feedyards. A few analysts already are “penciling in” 100 million bushels more hard red wheat being fed in the summer quarter than last year — wheat that could displace corn. Corn planting in the midsouth has gone well this year, with progress well ahead of normal. Acreage in the midsouth was forecast to be 12 percent larger than last year. If yields rebound to more normal levels, production in that region could hit a new record, eclipsing last year by 100 million bushels. And most of those bushels enter the pipeline before the current marketing year ends. Acreage in the Southeast is not a lot higher, but a better yield would boost supplies. And early planting in the southern Corn Belt could push some extra bushels into the pipeline before the marketing year closes as well. Even though these bushels are not supposed to be counted in the Sept. 1 corn stocks, they displace old-crop bushels that might otherwise have been used. Hence, the old-crop corn stocks may not be any tighter than currently forecast. And they could end up slightly higher. Last week’s action in old-crop corn futures suggests the market in general is thinking along these lines as well.
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309-557-2274
Cents per bu.
ü2011 crop: May futures’ inability to penetrate $6.43$6.46 suggests upside momentum has been exhausted. Oldcrop sales should have been wrapped up when May futures fell below $6.44. If not, use a rally to $6.30 on July futures to do so. ü2012 crop: Use rallies to $5.40 on December futures to make catch-up sales. Newcrop sales should have been increased to 40 percent when the fail-safe was triggered. We prefer hedge-to-arrive contracts for making sales. Plan to tie up the basis by midsummer. vFundamentals: The latest USDA supply/demand report left stocks unchanged at 801 million bushels. Whether you agree with USDA or not, it will limit oldcrop upside momentum. New-crop months will continue to be pressured on expectations for large corn acres, early planting progress, and this week’s general rains. And the abundant supply of wheat and the competition it presents in the feed bunk remain an ongoing drag on the market.
Soybean Strategy
ü2011 crop: We aren’t opposed to wrapping up sales, but the market still hasn’t given a good signal that prices are about to turn down. But the first break could be brutal with the record long position held by the trading funds. Use strength for catch-up sales. ü2012 crop: Get sales to recommended levels. Price another 10 percent if November futures hit $14. vFundamentals: Persistent Chinese buying and talk about the South American crops keeps soybean prices from turning lower. Last week’s USDA numbers didn’t offer any new insight. We are detecting some hesitancy on the part of world buyers to willingly cover needs at these prices. There are ongoing signs of acres being switched to soybeans from other crops, but the scope is difficult to determine. Financial markets remain a daily influence on market action. ûFail-safe: If May futures
fall below $14, wrap-up oldcrop sales, and make the newcrop sale.
Wheat Strategy
ü2011 crop: Wheat is having difficulty sustaining any upside momentum. The market is vulnerable to further weakness with seasonal pressure becoming an increasing drag on prices. Use rallies to wrap-up oldcrop sales. With the end of the marketing year winding down, use the cash market to make sales. Don’t carry unhedged inventories beyond April. ü2012 crop: Use rallies to $6.48 on Chicago July futures to make catch-up
sales. Producers selling 100 percent off the combine need to be aggressive in making sales on rallies. New-crop sales were increased to 45 percent when July traded at $6.69. vFundamentals: A small portion of the soft red winter wheat crop could have been damaged by the recent frost/freeze. However, damage appeared to be more localized than widespread. As a whole, the winter wheat crop is on track to produce good yields. The most recent weekly condition report indicated 61 percent of the crop was rated good and excellent.
FarmWeek Page 12 Monday, April 16, 2012
pERspEcTIvEs
Farm Bureau members:
Policy development season is here again
Baseball season is under way now that spring training has finished. Illinois Farm Bureau, too, is heading into its policy development season. As you look around, you will see Farm Bureau members’ ideas and policies being put into action. The Illinois Government Committee of the IFB Board of Directors has reviewed proposed legislation and made recommendations based on IFB policy. In the halls of Congress and the General Assembly, House and Senate committees have debated and voted RICH on bills — some GUEBERT JR. based upon Farm Bureau policy and views. Those actions are the culmination of policy development that started at the county Farm Bureau level across our state. Issues are brought to light, discussed among the members, and submittals are brought forward to the Resolutions Committee (RC). The RC then prepares a document to present to the delegates at the annual meeting. It is vital for our members to participate in the process of developing ideas and concerns into policy. I encourage members and county Farm Bureau leaders to review current Farm Bureau policy. If there is an area of policy of particular interest, please review that policy and assess whether it remains relevant to current issues and concerns. Each year RC subcommittees review portions of Farm Bureau policy to ensure the policy remains current and pertinent. Agriculture has been and will continue to be challenged on many fronts. It is vital that our existing policy continues to be reviewed. Whether it concerns the state or federal budgets, transportation, the farm bill, or property rights, it is imperative for Farm Bureau members to be involved in policy development and to remain part of the process. Our organization’s policy is developed at the grassroots level. It is a process driven by those who participate and are involved. Now that our policy development season is under way, I encourage our members to get in the swing, share their thoughts and ideas, and be responsible for a winning season. Rich Guebert Jr., Ellis Grove, is Illinois Farm Bureau vice president and chairs the Resolutions Committee, which works to develop policy resolutions to be considered by delegates at the IFB annual meeting.
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will be accepted. A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701
Agreement key to ensure seed trait innovation continues For the last 20 years, the American farmer has had great success with monotrait seeds that promote a single benefit to the seed, such as protection from insects or herbicides. TODD With the SIEBEN help of better genetics, better agronomic practices, and better equipment, yields have increased dramatically. A booming world population has put pressure on farmers to increase yields and to increase the nutritional value of their crops. Multi-trait seeds provide the solution to these issues, but in order to fully capitalize on these benefits, we need to develop a framework to bring these traits off patent and into the marketplace. By removing artificial barriers, we will see greater production and income for the American farmer. Success in the multi-trait seed market will translate into an increase in competition that will lead to robust innovation and new multi-trait seeds in the marketplace. Having worked in agriculture all of my life, I understand the importance competition and innovation play in our economy. America has a strong history of innovation that has allowed our country to maintain a position as a global leader. The time to take the next step is now, especially in the face of a vast American trade deficit and a looming global food crisis.
Why not plant more cover crops?
American protection of intellectual property has been the foundation for our success as the global technology leader. It is essential to the companies who invest their profits back into new product development. With the right public policy in place for biotech seed traits coming off patent, we can ramp up research and development of new seeds. The American Seed Trade Association (ASTA) and the Biotechnology Industry Association (BIO) are developing an accord for American seed companies to sign. They are to be applauded for leading this effort. The accord agreement should provide access to seed trait data and research four to five years prior to the expiration of a patent. This will allow for new multi-trait seeds to be developed and commercialized when the patent expires. This agreement will be similar to the current pathway for bringing pharmaceuticals off patent. New medicines and generics can be developed prior to the expiration of the patent. However, the new medicine or generic substitute cannot enter the market until the patent expires. This system simply does not exist for the multi-trait seed marketplace. As is often the case, technology has outpaced policy. Now is the time to make sure trade is not disrupted, innovation is encouraged, and agriculture continues to be a bright spot in the U.S. economy. Allowing for increased competition in the multi-trait
seed marketplace is the key to increasing trade exports and boosting economic growth. It’s also an issue that is vital to the health and security of every single citizen. With the population expected to grow to nine billion people by 2050, we need a commitment to solutions that will work to produce an abundance of high-quality food. During my 21 years of service in the Illinois legislature, I made agriculture a top priority because of the great value it provides to the people of Illinois and to the world. I had the pleasure of serving as the chairman of the Illinois Senate Agriculture and Conservation Committee. I also had the opportunity to work with producers, agribusiness leaders, commodity groups, and agriculture educators from all across the state. I have made a lifelong commitment to agriculture because I understand that agriculture is Illinois’ No. 1 industry and a vital part of our national security. It is deeply rooted in American history, in our communities, in our way of life, and it is essential to our future. This is why I support a policy framework to bring seed traits coming off patent into the marketplace that will promote competition, protect intellectual property, and provide timely innovations critical to the success of our American farmers. Todd Sieben is a retired state senator and has been in the seed corn business for several years.
LETTER TO THE EDITOR
Editor: I often drive between our two small farms in Woodford and Iroquois counties, mainly on U.S. 24. During the summer, the farm fields along the way are all green — almost exclusively corn and soybeans. But from fall harvest of these two crops until the new crops emerge after spring planting, almost all of the soil is unprotected by living plants. A few weeks ago I was excited to see that a small number of fields were greening up considerably. These alfalfa and winter wheat fields were on both ends of my trip — on four farms total.
The sight of those green fields always lifts my spirits because of their aesthetic beauty. Furthermore, based on what I have read on agroecology and eco-farming, these living winter plants are beneficial for the farmer and the environment. They decrease soil erosion due to wind and water, sequester micro- and macronutrients, improve the biological health and physical structure of the soil, increase the organic matter of the soil, and combat global climate change by fixing atmospheric carbon dioxide. These facts make me wonder why so few farmers include wheat and alfalfa as
part of their agronomic practices. Even with a corn-soybean rotation or corn on corn, cover crops could be sowed following grain harvest in the fall, thereby deriving the many benefits of having plants growing in the soil over the winter. I suspect that most farmers would tell me that having living plants over the winter would be less profitable and inconvenient. But those four farms I see on both ends of my frequent U.S. 24 trips are profitable family farms, and they are environmentally and ecologically friendly. HERMAN BROCKMAN, Congerville