THERE MAY BE better times ahead for pork producers, based on a USDA report issued last week. ........................................2
THE LESSER SNOW geese population has grown in Illinois par tially due to increased food available on untilled farm fields. ...3
MORRIS FIREFIGHTERS used equipment donated by the Grundy County Farm Bureau Young Leaders to save a man’s life. ..............8
Farm bill spending picture remains unclear — NCGA CEO Monday, April 1, 2013
BY MARTIN ROSS FarmWeek
The current budget/deficit debate leaves ag policymakers
Two sections Volume 41, No. 12
essentially “in a holding pattern,” according to National Corn Growers Association (NCGA) CEO Rick Tolman.
LAST GASP?
In an RFD-FarmWeek interview last week, Tolman acknowledged hopes of members of the House and Senate
In many years, running a picture like this on April 1 would be considered a lame attempt at an April Fools’ joke. But this year it’s reality as winter seems to be refusing to relinquish its grip on Illinois’ weather, even though the calendar says we are several days into spring. The double-digit snowfall that occurred March 24 and 25 made for a pretty scene on this Montgomery County farm near Taylor springs and other locales about the state, and it should improve much-needed soil moisture. See page 4 for more on the impact of the late-season snowstorm. (Photo by Ken Kashian)
Ag Committees to draft a new farm bill by May, but he stressed the need for further clarity in “the overall big budget picture.” Congress recently suspended the federal debt ceiling until May 19. That, according to some, delayed definitive longterm budget decisions until late summer. While the House and Senate last month agreed to separate long-term budget frameworks, Tolman said congressional leaders “keep kicking the can down the road in making some tough decisions.” House and Senate budget proposals are seemingly irreconcilable and thus essentially are “dead,” said American Farm Bureau Federation senior economist Bob Young. The ag committees need “firm numbers in an agreed-upon budget” to determine feasible program-producer support levels, Tolman argued. “I think we’re kind of two steps forward and one step back with this process,” Tolman said. “We do have some guidelines out of the Senate and the House — they’ve given some target numbers to the House and Senate Ag Committees.
“They’re very different numbers: The cuts in the House are roughly twice the size of the cuts in the Senate. But overall, in the ‘macro’ picture, we’re still in the same situation. We have to get an overall budget done and get past the deficit issues before we can start moving on the farm bill,” said Tolman. In his budget plan, House Budget Committee Chairman Paul Ryan (R-Wis.) called for re-examination of both farm program and crop insurance spending. Tolman said he was hopeful “logic will prevail” on continued crop insurance support. Crop insurance “did exactly what it was supposed to do” in the wake of last season’s drought, heading off need for a congressional “emergency bailout” for farmers, he said. Last year, the Senate approved a new “shallow loss” revenue program to protect farmers against dual price-production protections. The House Ag Committee responded to Southern grower concerns with a proposed twotier program offering either revenue or targeted price options.
would be the highest since 1936 (102 million acres) while soybean acres would be the fourth-highest on record. The planted area for all wheat for 2013 was pegged at 56.4 million acres, up 1 percent from last year. Winter wheat acres were estimated at 42 million acres, up 2 percent. “The big thing about the planting report is to see if these numbers are realized,” Basting said. “How fast the temperature warms and the ground dries out are variables the market will be keeping an eye on.” Farmers’ intentions to plant such large crops was due in large part to economics and
the expectation of profitable returns, Basting noted. He believes farmers will stick with their planting intentions, despite a weather-induced delay to the start of the season, for at least another month. “Producers maintain their (planting) intentions historically through April,” Basting said. “If we get to May 1 (and planting delays still are prevalent) they may consider some alternatives.” Rick Tolman, CEO of the National Corn Growers Association, said farmers’ response to high corn prices and low
Large stocks, plantings estimates sink crop prices
Periodicals: Time Valued
BY DANIEL GRANT FarmWeek
USDA’s grain stocks and prospective plantings reports released last week were bullish
FarmWeekNow.com
To view Darrel Good’s reaction to the plantings reports, go to FarmWeekNow.com.
for crop supplies and bearish for prices. Stocks in all positions nationwide as of March 1 were estimated at 5.4 billion bushels for corn, 999 million bushels for soybeans, and 1.23 billion bushels for wheat. All three estimates were well above trade expectations. Crop
prices, in response, were limit down late last week. “(The stocks estimates) are bearish for all three crops,” Brian Basting, market analyst with Advance Trading, said during a teleconference hosted by the Minneapolis Grain Exchange. “There is a much more comfortable corn carryout than the trade expected.” Stocks likely will continue to grow this fall if crop conditions allow yields to bounce back to trend levels. USDA on Thursday estimated U.S. farmers this spring will plant 97.28 million acres of corn and 77.13 million acres of beans. If realized, U.S. corn acres
FarmWeek on the web: FarmWeekNow.com
See Farm bill, page 3
See Stocks, page 3
Illinois Farm Bureau®on the web: www.ilfb.org