A plethora of planters took to Illinois fields last week as soils became drier and warmer. page 3
A renewable fuels coalition launched a national advertising campaign to defend ethanol. page 5
Immigration reform back in spotlight Monday, April 28, 2014
Ag education efforts received a $118,500 boost through the Foundation’s 1st FCS Fund. page 8
FINISHING TOUCHES
Two sections Volume 42, No. 17
BY DEANA STROISCH FarmWeek
Periodicals: Time Valued
Politicians, clergy, university officials and farmers called on Congress to pass immigration reform last week during a series of events held throughout Illinois. Event sponsors included Illinois Business Immigration Coalition, Bibles Badges and Businesses, and Illinois Farm Bureau. Reps. Aaron Schock, R-Peoria, and Adam Kinzinger, R-Manteno, addressed the crowd by video during last week’s Chicago event, “Immigration Bottom Line 2014.” Hundreds of Republican leaders and CEOs attended the event, including IFB President Rich Guebert Jr. “We need a clear path to citizenship for workers already here, and a fair and efficient on-ramp for those who want to come here,” Schock said. “We should never forget we are all a nation of immigrants.” Kinzinger said: “We must work hard to come to an agreement on how to bring undocumented workers out of the shadows, legally entering the work force and becoming part of the American melting pot that makes this country great.” In a statement to Crain’s Chicago Business, Rep. John Shimkus, R-Collinsville, said in part: “I do support and my district supports a strong agricultural worker bill. I also support bills providing expedited visas for high tech workers, stronger border security and worker verification. We also have to address the 12 million undocumented immigrants who are already here by moving them legally into the work force, not by granting them unconditional amnesty.” Immigration reform remains stalled in the U.S. House of Representatives.
Ty Meyer applies anhydrous ammonia fertilizer on a 160-acre field near Marblehead in Adams County farmed by his grandfather, Richard Speckhart, and his uncle, IFB District 9 Board Director Gary Speckhart. Wet conditions prevented Meyer from completing anhydrous application last fall. Meyer farms with his dad, Marvin, and brother, Ryan. They grow corn and soybeans, and raise Angus cattle. (Photo by Ken Kashian)
During a panel discussion at the Peoria Chamber of Commerce, the Rev. Tony Lee of Holy Trinity Catholic Church talked about his service along the United States-Mexico border in 2010. During his first 15 days there, he said 30 people were found dead in the desert trying to make it into the United States. “There’re signs posted everywhere along the border: ‘Don’t go. Don’t try it. You will die.’ And yet they go. Why? Simply because the Mexico side of the fence, folks were making sometimes $8 a day. A hundred
yards into the United States territory, they are making sometimes upward of $8 an hour — doing the very same job.” He said the “so-called illegals are not so because they wish to defy the law, but because the law does not provide them with channels to regularize their status in our nation.” “They’re not breaking the law, the law is breaking them,” he said.
USDA plans to require PEDV reporting
BY DANIEL GRANT FarmWeek
The U.S. Department of Agriculture hopes to get a better handle on the spread of porcine epidemic diarrhea virus (PEDV) in the months ahead. USDA this month, which marks the one-year anniversary of the first confirmed case of PEDV in the U.S., unveiled plans to require reporting of PEDV in an attempt to slow the spread of the virus. More than 5,500 cases of PEDV in 28 states, including Illinois, were confirmed nationwide as of last week. Other suspected cases soon could push the total number of states affected by
See Immigration, page 7
PEDV to 30, porknetwork.com reported. “USDA has been working closely with the pork industry and our state and federal partners to solve this problem,” Ag Secretary Tom Vilsack said. “Together, we have Tom Vilsack established testing protocols, sequenced the virus and are investigating how the virus is transmitted.” Officials hope stricter reporting requirements will reveal gaps in biosecurity and help USDA identify how
FarmWeek on the web: FarmWeekNow.com
PEDV spreads. “It should help us track it and get a better idea of how many herds are affected (by PEDV),” Mark Ernst, state veterinarian with the Illinois Department of Ag, told FarmWeek. “Now the thing we’re trying to figure out is how it’s getting spread around.” PEDV could spread from animal to animal through infected manure, feed or from workers’ clothing or machinery among other possibilities. However, USDA’s plan to track PEDV, just like details about the spread of the virus, still leaves many unanswered questions. See PEDV, page 7
Illinois Farm Bureau on the web: www.ilfb.org ®
Quick Takes
NEW DIRECTORS
FarmWeek Page 2 Monday, April 28, 2014
CHECK OUT YOUNG LEADER BLOG — Want to join the latest Illinois Farm Bureau Young Leader (YL) conversation? Go to the YL blog in its new location at {www.ilfb.org/get-involved/young-leaders/yl-blog.aspx}. In the latest post, District 7 Young Leader Ryan Voorhees of Tazewell County shares tips on striking a balance between communicating via social media sites and avoiding social media overload.
WATERWAY APP ENHANCED — Want to check on the condition of a nearby lake, river or stream? There’s an app for that. The U.S. Environmental Protection Agency (EPA) released an enhanced version of “How’s My Waterway,” an app and website accessible from a smartphone, tablet or desktop computer. The How’s My Waterway app and website at {epa.gov/mywaterway} uses GPS technology, or a userentered zip code or city name to provide information about the quality of local water bodies. The new version of the site includes data on local drinking water sources, watersheds and efforts to protect waterways. The enhanced version includes new data and improvements, including localized information on waterways that supply drinking water to communities, the health of watersheds and organizations working to protect watersheds, and efforts to restore waterways to protect and improve fish habitats by the National Fish Habitat Partnerships.
CHOCOLATE MILK BAN BACKFIRES — A Cornell University study showed that removing all chocolate milk from school menus has negative consequences. “When schools ban chocolate milk, we found it usually backfires. On average, milk sales drop by 10 percent, 29 percent of white milk gets thrown out and participation in the school lunch program may also decrease,” said Andrew Hanks, a Cornell researcher. The Cornell study, which included professors David Just and Brian Wansink, examined what happened when chocolate milk was banned in a sample of Oregon elementary schools. Elsewhere, schools that follow USDA school lunch rules serve fat-free flavored milk with reduced sugar content. After a chocolate milk ban, the Oregon students consumed less sugar and fewer calories. They also consumed less protein and calcium. “Instead of banning chocolate milk, make white milk appear more convenient and more ‘normal,’” said Wansink, director of Cornell’s Food and Brand Lab. “Put the white milk in the front of the cooler, and make sure that at least one-third to half of all the milk is white. We’ve found that this approach can increase sales by 20 percent or more.”
(ISSN0197-6680) Vol. 42 No. 17 April 28, 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.
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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) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
Right: Gary Speckhart, new District 9 Illinois Farm Bureau Board d i r e c t o r, s u r v e y s r e n o v a t i o n progress made in his 1800s barn. The bar n will soon ser ve as a wedding and special events venue. Ab ove: Speckhar t and his wife, Rita, raise corn, soybeans and grapes near Payson (Adams County). They have four children – Aaron, Somer, Rhiannon and Alese. (Photos by Ken Kashian)
Passion for farming spurs new director
BY DEANA STROISCH FarmWeek
Gary Speckhart has been through some rough times, but he has never once thought about giving up farming. “I’ve always enjoyed it,” he said. Speckhart of Payson was elected in December to serve as Illinois Farm Bureau’s District 9 director. He has been an IFB member since 1974. He also currently serves as a Prairieland FS director. “I would hope that I, working with this outstanding group of IFB board members, can contribute to the continuation of the exemplary work that Illinois Farm Bureau has accomplished,” he said. The six-county district he represents includes Adams, Brown, Hancock, McDonough, Pike and Schuyler counties. Speckhart and his wife, Rita, raise corn and soybeans. They
have four children –— Aaron, Somer, Rhiannon and Alese. He is a member of the Bluff Hall Church in Payson, where he serves as a moderator. The Speckharts also grow grapes and have recently started renovating their barn, which dates back to the 1800s, for a wedding/special events venue. Speckhart grew up on a farm and received a bachelor’s degree in ag business from Western Illinois University. He started farming full time in 1975. “My father and I had 100 head of beef cows and 80 head of sows that kept me busy for my early years of farming,” he said. Speckhart has served on a number of elected and appointed boards in his community. He served 12 years as a trustee of John Wood Community College and two terms as treasurer of the Illinois Community College Trustees Association. He served 12 years on the Payson Seymour School Board and worked part time as a commercial loan officer. He and his wife, Rita, were invited by Phil and Dixie Koch to attend a Young Leaders
Conference in Springfield in the 1970s. He was impressed with the Farm Bureau organization, he recalled. A few years later, he accepted an invitation to serve on the Adams County Farm Bureau Board. He eventually served as president. The biggest farming challenge the Speckharts have faced came during the 1993 Fourth of July weekend. They lost at least 80 percent of their crop to flooding — and didn’t have crop insurance. “We fought high rivers for many years since I was a little kid,” he said. “The river levee had never broken. We just didn’t think it was a possibility.” The Speckharts have had crop insurance every year since. That was needed during the drought of 2012, he said. Despite the challenges, he said, he has no plans to stop raising crops. Farming, he said, brings new opportunities each year. “That’s what happens every year when you put the crop in the ground,” he said. “You think, ‘It’s going to be a great year. We’re going to have a great year.’ That opportunity — that potential — every year, I think, is what keeps us going.”
PRODUCTION
Page 3 Monday, April 28, 2014 FarmWeek
Planting progress spotty; delays could linger
BY DANIEL GRANT FarmWeek
Corn planters in parts of central and southern Illinois made significant progress last week while others waited for better soil conditions. This week, it appears the waiting game will continue for most farmers if a cool, wet weather forecast comes to fruition. “Area-wide it (planting progress) is hit and miss,” said Jason Lay, a farmer from Bloomington (McLean County). “Some (farmers) started, some haven’t started and some started and stopped (last week).” The two main issues for farmers revolve around cool soil temperatures and excess soil moisture in some regions, although parts of western and northwest Illinois last week were rated abnormally dry. “We’ve yet to start,” Lay said last week. “We’ll see what the weather brings. We’re a little apprehensive about the cool conditions upon us.” The soil temperature on Lay’s farm last week ranged from the upper 40s at night to peaks near 60 degrees during the day. Elsewhere, Alan Bailey, a Sangamon County Farm Bureau member who works for a farm input supplier in Lowder, reported the majority of corn was planted last week in parts of south central Illinois known as “Racehorse Flats.” “A lot of guys finished up (corn planting) or are finishing today,” Bailey said on Thursday. “There are a few guys holding out due to concerns about the ground temperature,” he continued. “But, overall, I’d say 80 to 85 percent of corn is planted in this area.” Bailey and Lay both reported very little of the early-planted corn emerged as of late last week due to cold soil temperatures.
Above, Bret Rosenbohm, left, checks planter settings with his stepson, Justin Towery. The duo planted corn last week in a Peoria County field near Glasford. They farm with Rosenbohm’s dad, Gary, who serves on the Peoria County Farm Bureau Board. Below, Towery plants corn in a field that has been under a continuous no-till system for 30 years. (Photos by Cyndi Cook)
And that issue could linger based on the weather forecast. “The cooler conditions could last through the first week of May,” said Ricky Castro, meteorologist with the National Weather Service office in Romeoville. Rain also could slow field activity this week. “We are expecting periods of rain for several days in a row (possibly beginning late Sunday and occurring off and on into Wednesday),” Castro said. “We could see some fairly impressive rain totals.” Some parts of the state
need rain. But the forecast points to a continuation of planting delays. Illinois farmers as of the first of last week planted 5 percent of the corn crop, which was four points ahead of last year’s pace but well below the five-year average of 22 percent. Elsewhere, 51 percent of oats and 3 percent of sorghum was in the ground around the state as of the first of last week. Topsoil moisture last week was rated 11 percent surplus, 78 percent adequate and 11 percent short or very short.
were unsure how the crop fared until recent weeks. “The last four or five days we had some 70-degree days, which gave folks a chance to evaluate their winter wheat fields,” Higgins said last week. “I’m aware of at least four or five commercial fields that were terminated,” he continued. “Even the ones farmers kept that look good have some bare spots.” U of I researchers planted the test plots at Shabbona early (Sept. 25) compared to many of the commercial fields that were planted in the second and third weeks of October. But an early start to winter (the first major snow occurred Nov. 25) cut the fall season short. In fact, some cornfields remained unharvested in northern Illinois
last week, Higgins noted. A wave of subzero temperatures followed the early snow last fall and likely caused much of the damage. “We certainly had substantial snow cover most of the winter,” Higgins said. “But there was a time frame we were temporarily snow-free and we had very frigid temperatures.” Illinois farmers last fall planted 740,000 acres of winter wheat, down 15 percent from the previous year. The winter losses, fortunately, were not widespread. Kyle Brase, a farmer from Madison County and president of the Illinois Wheat Association, reported good stands in his area. “I don’t have any fields that won’t be wheat,” Brase said. “I
Farm leaders urge Duracade growers to follow stewardship guidelines
Farm leaders last week reminded growers to follow stewardship guidelines this season if they plant Syngenta’s new Agrisure Duracade corn seed or other biotech traits not approved in major export markets. Otherwise, U.S. farmers risk everything from getting their corn rejected at local grain handling facilities to blocking bulk shipments of corn to various destinations. Grain exporters, including Archer Daniels Midland, Bunge and Cargill, announced about two months ago they would not accept Duracade corn containing corn rootworm control traits. The technology was approved in the U.S., but not in China, the European Union, Egypt and Turkey. ADM this month unveiled plans to selectively test loads at grain handling facilities this harvest. It reserves the right to FarmWeekNow.com reject corn loads that contain Listen to Dan Grant’s interview traits unapproved for export. with USGC officials about using Farmers unsure about the sta- Syngenta/Duracade corn varieties tus of any corn varieties in their this year at FarmWeekNow.com. lineup should contact their seed supplier or visit the National Corn Growers Association (NCGA) website {ncga.com} for a full list of varieties approved and unapproved for the export market. NCGA, through its Know Before You Grow campaign, supports compliance with regulations on biotechnology in place in major export markets. Otherwise, corn sales could be affected this fall and winter. “We’re asking farmers to be very, very careful and very attentive to the stewardship agreement with Duracade in terms of keeping that corn out of the export market,” Tom Sleight, president and CEO of the U.S. Grains Council, told FarmWeek. “It helps us in bargaining with China, with market access and it keeps that market alive, while still allowing the technology for farmers.” USGC works with Chinese officials on a daily basis on biotech acceptance. But it’s a very complex issue in China and likely will take more time to resolve, Sleight noted. Farmers who plant Duracade have options to market their grain. Nebraska-based Gavilon Grain has an agreement with Syngenta to help growers channel the corn to proper markets. The company has multiple facilities in Illinois. “We believe the (rootworm control) trait is very good. That’s why we’re excited about it,” said Matt Hynes, GROWMARK seed sales and marketing manager. “If a grower wants to plant it, we support it. The biggest thing is contact (seed industry representatives) to channel the grain.” Estimates suggest farmers this season could plant about a half-million acres of Duracade corn, a drop in the bucket compared to 91.7 million total corn acres. Farmers who plant Duracade should take extra precautions. “Make sure your equipment is clean so you don’t contaminate another field,” Hynes said. “And growers (who don’t have arrangements to deliver Duracade corn at harvest) may have to have bins set up to store and keep it separate so it’s not comingled in other grain.” U.S. corn exports so far this year are on pace to more than double last year’s sales. — Daniel Grant
Winterkill ravages some northern Illinois wheat stands; field day canceled
The brutal winter left its mark on some wheat fields, particularly in northern Illinois. Russ Higgins, University of Illinois Extension crop sciences educator, last week reported significant winterkill on some commercial wheat fields. The test plots at the U of I Northern Illinois Agronomy Research Center in Shabbona (DeKalb County) also suffered major winter damage. “A good portion (40 to 50 percent) of our variety trials didn’t survive the winter,” Higgins told FarmWeek. The annual field day at the agronomy research center in June was canceled due to the loss of numerous plots. Many wheat growers and researchers in northern Illinois
Kelsey Krausz, left, University of Illinois lab and field technician, and Kaitlyn Bissonnette, right, U of I graduate student, evaluate damaged wheat stands in a Kendall County field. (Photo by Russ Higgins, U of I Extension crop sciences educator, Northern Illinois Agronomy Research Center, Shabbona)
feel good about the condition of the crop.” The condition of the wheat crop statewide last week was
rated 9 percent poor or very poor, 31 percent fair and 60 percent good to excellent. — Daniel Grant
EDUCATION
FarmWeek Page 4 Monday, April 28, 2014
State certificates, licenses hurdles for future ag teachers BY KAY SHIPMAN FarmWeek
This year Illinois agriculture education graduates face uncertainty about the required credentials to teach here. In fact, every education
grad will go through a new assessment of professional teaching as Illinois switches from a primarily paper-based portfolio to a video of a potential teacher’s instruction and evaluation. Recently, con-
cerns were raised whether outof-state evaluators would return the video assessments in time for newly minted teachers to be able to teach this fall. The new video assessment
LEADERSHIP SKILLS SOAR
Premier 20 Leadership Conference participants direct a space mission at the Heartland Community College Challenger Learning Center in Normal last week. Andrew Klein, Amboy FFA; Libby Norcross, Challenger Center flight director; Evan Schwenk, Normal 4-H; and Cody Morris, Lerna FFA lead the crew. Illinois Farm Bureau along with COUNTRY Financial, GROWMARK, IAA Credit Union and Prairie Farms Dairy hosts the annual 4-H and FFA leadership event. (Photo by Ken Kashian)
comes on top of several recent changes to Illinois mandates for teacher certification and licenses. And more changes await. “We keep adding more layers of (teaching) assessment, not counting the courses students have to take,” said Seburn “Seb” Pense, ag education and communications professor at Southern Illinois University-Carbondale. “Students constantly seek answers to questions about what is needed to be qualified,” Pense noted. Future high school ag teachers soon must meet increased requirements to be able to teach middle school students an exploratory ag class. In 2018, the Illinois State Board of Education will require up to 32 credit hours. Under the current system, ag ed students or high school ag teachers can meet the middle-school requirement by taking two, 3hour courses. Additional credit hour requirements that could take a year to complete run counter to the state’s 2012 education initiative to expose grade and middle school students to potential careers. That Illinois Pathways initiative includes ag,
food and natural resource careers. Currently, certification testing and assessment requirements cost future teachers about $975 in direct costs and an estimated $5,900 in additional expenses and missed income, according to Richard “Dick” Steffen, agricultural education professor at Illinois State University (ISU). During a recent agricultural education symposium, Steffen provided a laundry list of tests and requirements for a typical ISU ag ed student. Those include annual Illinois State Police criminal background checks. In addition, the school where a student will student teach requires additional criminal background investigations by the state police and the Federal Bureau of Investigation. Recent changes and uncertainty further discourage the number of college students studying ag education or pursuing careers in classrooms. “I admire the (ag ed) students we get today because they go through more today than (students) before,” concluded Andrew “Andy” Baker, agriculture education professor at Western Illinois University.
Want to teach ag? Try these information sources Future agriculture teachers may contact the following individuals about agriculture education degrees at the four state universities with agriculture programs. • Illinois State University Department of Agriculture, Richard “Dick” Steffen, agricultural education professor, 309-438-8084 or rwsteff@ilstu.edu. For the ISU ag ed website, visit {agriculture.illi noisstate.edu/programs/education}. • Southern Illinois University-Carbondale College of Agricultural Sciences, Seburn Pense, agricultural education and communications professor, 618-453-2467 sebpense@siu.edu. For the SIU-C ag education website, visit {teachag.siu.edu}; • Western Illinois University School of Agriculture, Andrew J. Baker, agricultural education professor, 309-298-1080 or AJ-Baker@wiu.edu; • University of Illinois-Urbana-Champaign College of Agricultural, Consumer and Environmental Sciences, Gary Ochs, agricultural education program teaching associate, 217-244-5164 or garyochs@illinois.edu. Prospective ag teachers will find current ag teacher openings at {agriculturaleducation.org/LinkPages/Career/VacancyList.asp}. Click on the “teaching vacancies” icon on the left side of the page. –— Kay Shipman
Nebraska Farm Bureau starts ag teacher loan, scholarship program
Add ag teaching to a list of critical careers to receive financial support through scholarships and loans. “Nebraska is facing a critical shortage of agricultural education teachers,” said Steve Nelson, president of the Nebraska Farm Bureau Foundation for Agriculture. In mid-April, Nebraska Farm Bureau announced a new scholarship and loan program to support future ag teachers and those who are new to the classroom.
Under the student teacher program, eligible ag ed students may apply for a $1,200 scholarship for the semester during which they are student teaching. Under the teacher loan assistance program, ag teachers who have existing student loans and have been teaching for one to five years may apply for loans. The amount of the loan would increase during the first five years in the classroom. — Kay Shipman
POLICY
Page 5 Monday, April 28, 2014 FarmWeek
Fuels America kicks off campaign to defend RFS BY DEANA STROISCH FarmWeek
Fuels America launched a national advertising campaign last week to defend the ethanol industry and the Renewable Fuel Standard (RFS). The broad-based coalition also released an economic impact study by John Dunham & Associates that shows the renewable fuels industry supports 73,156 jobs (26,937 direct jobs) in Illinois and generates $4.7 billion in wages. The efforts come weeks before the Environmental Protection Agency (EPA) is expected to decide how much ethanol must be in the nation’s gasoline supply. In November, EPA proposed the renewable fuel mandate in the RFS be lowered from 14.4 billion gallons to 13 billion gallons. The advanced fuel mandate, including biodiesel and E85 fuel, would drop from 3.75 billion gallons to 2.2 billion gallons.
EPA received more than 100,000 comments on the proposed rule, which was opposed by agricultural groups across the country, including Illinois Farm Bureau. EPA officials have said they expect a final rule to be released in late June. Jon Doggett, vice president for public policy at the National Corn Growers Association, told reporters last week that the RFS is in trouble. “We’re seeing a huge amount of money being spent by the petroleum industry, and by others, who are actively lobbying Congress, attempting to line up enough votes to be successful to either reform ... or repeal the Renewable Fuel Standard,” he said. “It is under attack. “We know they’re working it every day. The folks that work for us are working the hallways as well, but we’re outnumbered and we’re outgunned.” In a separate conference
AFBF: Waters of U.S. proposal an ‘end run’ BY DEANA STROISCH FarmWeek
Calling it an “end run” around Congress, American Farm Bureau Federation (AFBF) last week called on members to oppose a proposed rule governing “waters of the U.S.” The rule, proposed by the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers, was published in the Federal Register April 21. That triggered the start of a 90-day comment period. EPA says the rule merely clarifies which wetlands and streams are “waters of the U.S.” Opponents, including Illinois Farm Bureau and AFBF, say the proposal expands federal jurisdiction under the Clean Water Act. “This rule is an end run around congressional intent and rulings by the U.S. Supreme Court alike,” AFBF President Bob Stallman said. “Congress and courts have both said that the 50 states, not EPA, have power to decide how farming and other land uses should be restricted. It’s time to ditch this rule.” AFBF also issued an action request, urging members to write to EPA. To send a letter,
‘Congress and courts have both said that the 50 states, not EPA, have power to decide how farming and other land uses should be restricted.’ — Bob Stallman AFBF President
visit {capwiz.com/afb/issues/ alert/?alertid=63192396}. The proposed rule states that under the Clean Water Act: • Most seasonable and rain dependent streams are protected. • Wetlands near rivers and streams are protected. • Other types of waters may be protected, if a case-specific analysis shows they have a “significant nexus” — either alone or in combination with similarly situated “other waters” — to a traditional navigable water, interstate water or territorial streams.
RFA: Corn stover study ‘fundamentally flawed’ Calling it “fundamentally flawed,” the head of the Renewable Fuels Association (RFA) rejected a study published in Nature Climate Change that concluded biofuels from corn stover may be worse for the environment than gasoline. “The results are based on sweeping generalizations, questionable assumptions and an opaque methodology,” said Bob Dinneen, RFA president and CEO. “The authors offer no robust explanation for why their findings contradict other recent, highly-regarded research. Ultimately, this paper should be seen for what it truly is — a modeling exercise of a hypothetical scenario that bears no resemblance to the real world.”
call with reporters, Tom Buis, CEO of Growth Energy, said the Fuels America advertising campaign will “blow the whistle on all the ways the oil industry is trying to rig the system in their favor in this debate.” He declined to say how much the ad campaign will cost, only describing the cost as “extensive.”
Dinneen pointed to other studies that examined the effects of using corn residue for bioenergy, including one by the University of Illinois and DOE’s Argonne National Laboratory. That study found 30 percent residue removal resulted in no additional direct or indirect carbon emissions, he said. “Furthermore, it showed certain levels of corn stover can be removed without decreasing SOC (soil organic carbon),” he said. “Initial results from research at South Dakota State University showed that SOC levels remained constant from 2008-2012 in a harvest system with relatively high residue removal rates.” — Deana Stroisch
The campaign includes advertisements on cable television for at least two weeks and online advertisements, including an “Earth Day takeover” of Politico.com. A website, {oilrigged.com}, also was created. Bob Dinneen, president and CEO of the Renewable Fuels Association, rejected claims by American Petroleum
Institute (API) that ethanol is bad for car engines and boats. “Oil rigged is an apt description of what the API is doing today,” Dinneen said. “They are absolutely trying to rig debate with misinformation, junk science and misleading ads all designed to scare consumers and Congress about ethanol to protect their market share.”
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FarmWeek Page 6 Monday, April 28, 2014 Bernie Walsh, Durand, Winnebago County: It was back to the field last week, as we had some warmer, drier weather. There were anhydrous tanks everywhere until it started raining Thursday afternoon. There were shortages of NH3 at several of the retailers because of the demand for tanks. Almost everyone has finished that job for now. Very little corn was planted. Pete Tekampe, Grayslake, Lake County: Another cool week in Lake County. We received .1 of an inch of rain on Wednesday night and another .3 Thursday night, but we did not get many warm temperatures. Some oats have been planted. A lot of fertilizer was being spread, but not much anhydrous yet. Highs in the mid-50s are forecast this week with lows in the mid-30s. They are also forecasting rain for five of the next seven days. Let’s hope they are wrong. Leroy Getz, Savanna, Carroll County: It did not rain on Easter Sunday, but we received .3 of an inch Monday (April 21). Some corn went into the ground over the weekend (April 19-20) before the rains came. With frost at 30 degrees on Wednesday, it was just too cool for anything to grow. Soil temperatures were in the mid-40 degree range. We have not pulled our planter out of storage yet. Our oat fields are starting to emerge and green up. We received some light rain of nearly .5 of an inch Thursday evening. Ryan Frieders, Waterman, DeKalb County: Corn planting has begun for some farmers in our area. Cool temperatures and a few showers have caused us to wait and see if temperatures will warm up. Most anhydrous ammonia application is complete. When the weather improves, we will be ready to go. Larry Hummel, Dixon, Lee County: A new beginning. Spring is here for my father, Charles Hummel. He passed away on Easter. I will miss my dad, my mentor, my partner and my friend. He wore many hats over the years — farmer, grain dealer, trucking and John Deere dealership. The ones he wore best were as father and husband. Dad was all about family, but work was important, too. So here’s my report. Very little corn has been planted. Showers on Wednesday and Thursday put a halt to field activity, but when it dries out this time — look out — everyone will be going full force. Ken Reinhardt, Seaton, Mercer County: About .5 of an inch of rain total was what most of my farms had from three days of showers. I’m about half done with corn planting. A few are done, but many have not started. With the weather forecast, corn would take 20 days to emerge. From the U of I Monmouth Research Center and several local observations, it was probably a once in a lifetime event, but the best corn planting date last year was around June 10. It was not the most profitable, depending on your cost to dry corn. Ron Moore, Roseville, Warren County: We received .25 of an inch of rain Thursday. We are about 60 percent complete with corn planting. Lots of corn was planted last week in this area. We have not put cattle out to pasture yet. The cool weather has delayed early growth of the grass and forecasts for cold rain this week will cause more delays. Jacob Streitmatter, Princeville, Peoria County: Corn planting progressed across the area. Some waited on the cold, wet weather that has not materialized yet.
Mark Kerber, Chatsworth, Livingston County: Nice weather has given us a start to corn planting. Some are going strong, while others have not started because of the cold soil temperatures and cold, wet forecast. Other activities include spraying, fertilizer application and ground preparation. Not many weeds yet, except for a few winter annuals.
Tim Green, Wyoming, Stark County: A lot of people planted corn the beginning of the week. Ground temperatures were a little less than ideal, but farmers went ahead and planted. Probably 10 to 15 percent of the corn was planted the first three days. It rained a little bit on Wednesday. The forecast was bad, so people stood on the sidelines and scratched their heads on what to do. It was raining Friday morning. Ron Haase, Gilman, Iroquois County: There was quite a bit of activity in the fields last week. Sprayers and field cultivators tried to stay ahead of the corn planters. Some soybeans were also planted. The cool soil temperature, along with cool and wet weather predicted for this week limited how many acres of corn have been planted. As I made this report on Thursday, we had not begun to plant, although we did have one field ready to be planted Friday if it didn’t rain. The local closing bids for April 24 were nearby corn, $4.74; new-crop corn, $4.69; nearby soybeans, $14.71; new-crop soybeans, $12.04. Brian Schaumburg, Chenoa, McLean County: Near ideal planting weather last week had our area at about 35 percent complete. With that said, some are nearly finished and others have not turned a wheel and are waiting for warmer conditions. Seed beds are as good as it gets. We will get to soybeans after this rain event passes. Corn, $4.90, $4.82 fall; soybeans, $14.74, $11.93 fall; wheat $6.60. Steve Ayers, Champaign, Champaign County: Plant-ometer has planting progress at a whopping 60 percent corn completion after a whirlwind week of activity. We started planting Good Friday and rolled until planter monitor voodoo hit us Saturday night (April 19) with red warning boxes indicating problems with MIU, sensor bus fault, etc. We finished corn Wednesday afternoon. After .2 of an inch of rain Thursday night, we planned to start beans Saturday. Thursday night around 7 p.m., Brent Stewart, an Illini FS employee driving a fertilizer applicator, was killed by an Amtrak passenger train just south of Savoy. Three passengers had sore necks, but no serious injuries on the train. Let’s be careful out there, please! Wilfred Dittmer, Quincy, Adams County: Hello from Western Illinois where we received .2 of an inch of rain in the gauge Thursday for a total of 1.85 inches for the month so far. Several in the area have been planting since our last report and the dust trails have been following in the same tracks. The min-till guys seem to be on the right track of preserving moisture and getting emergence too. Tile lines going in are dry all the way down, which is not a good sign either, compared to 2012 which we have not forgotten. Carrie Winkelmann, Tallula, Menard County: Corn planting has been fast and furious in our area since last week. No rain to report, although I saw that the river bottoms were planted last week, so that is a sure sign it could flood at any minute. We got some bean acres sprayed last week alongside the corn planting and application of 28 percent. Todd Easton, Charleston, Coles County: Seed is in the ground finally across Coles County and surrounding areas. I waited until Monday (April 21) to plant when we had ground that was still damp in places. Many producers should be close to, or over half done planting corn. A long string of showers are in the forecast the beginning of this week with the threat of substantial rainfall that may cause a speed bump in the planting progress. The only thing worse than too much rain is not enough. Stay safe in the rush!
Tom Ritter, Blue Mound, Macon County: Planters started rolling a little bit Friday (April 18) and more went on Saturday (April 19) and everyone was planting by Monday (April 21). We had a slight trace of precipitation early last week, but it never stopped any operations, at least in southern Macon County. Planting is at least 80 percent complete on corn and no reports of soybeans being planted. At this point, a little moisture would not hurt anything. Jimmy Ayers, New City, Sangamon County: Last week, we received .2 to .5 of an inch of rain, and southern Sangamon County into Christian County received .5 of an inch. It was a Holy Week and holy cow did the planters ever run. Thousands and thousands of acres were planted. Sangamon County probably went to 75 percent planted on corn. We ended up at about 70 percent planted on our corn. I have not seen any corn up yet. The April 1 corn is up and going, but the April 11-12 planting has not come around yet. The ground has been working great, and the corn went in very well. Doug Uphoff, Shelbyville, Shelby County: We started planting last weekend (April 1920). Field conditions were perfect and have remained that way so far. No concerns about losing moisture with cool temps. There have been some still putting on anhydrous and some are done planting corn, while some haven’t even started. They were calling for a .25 of an inch of rain as I wrote this Thursday, but possibly heavy rains by the time you read this on Monday. David Schaal, St. Peter, Fayette County: It has been a busy week around the farm with dry weather until Thursday night. Rain moved in and left .65 of an inch in my gauge. Lots of fieldwork has taken place this week along with planters rolling in some areas. Some producers are about finished with corn planting and some haven’t yet started. Hopefully, the corn that has been planted will be all right with the cooler weather forecast and rain that’s moving in this week. Everybody is busy and a lot of ag equipment on the roadways, so stay safe. Jeff Guilander, Jerseyville, Jersey County: Planters started rolling right before Easter and did not stop until late Thursday afternoon. With the cool mornings, most were cautious but persistent, and that led to a lot of seed planted into some really nice soil conditions, but emergence is very slow to nonexistent. Peach growers are talking about fishing trips and vacations this summer, not a good sign for this year’s crop. Dan Meinhart, Montrose, Jasper County: Very little planting took place last week, although a lot of preparation was done mainly anhydrous, dry fertilizer and chemical applications. The wheat has taken off and looks good after the second application of nitrogen, insecticide, herbicide and fungicide. No rain as of 9:30 Thursday night. There is rain in the forecast for this week. Dave Hankammer, Millstadt, St. Clair County: Corn planting picked up over Easter weekend in select fields and the pace continued along with the good weather we had last week. We received a total of .1 to .2 of an inch of rain. The wheat crop continues to improve as plants are utilizing the fertilizer applications and warm weather. Local grain bids: corn, $5.05; soybeans, $14.73; wheat $6.99. Have a safe week. Kevin Raber, Browns, Wabash County: Field activities were going wide open until Friday morning. I dumped .2 of an inch out of my rain gauge. A lot of corn went into the ground last week. Warmer, drier weather and the river going down below flood stage helped to dry soils. The wheat looks good. It’s just so far behind in its development I hope it can play catch up in the next few weeks!
Page 7 Monday, April 28, 2014 FarmWeek Rick Corners, Centralia, Jefferson County: Things sure have changed since my last report. We missed the rain of Easter weekend and by Tuesday, the planters came out of the shed. I suspect some are already half done and, of course, some haven’t started yet. Sure hope the heavy rain forecast is wrong. Randy Anderson, Galatia, Saline County It’s been a busy week. You name it — it’s been going on. Spraying, spreading fertilizer, anhydrous and some planting in spots. I would say 10 to 15 percent of the corn has been planted in the county. With the forecast for this week, it’s rain, rain, rain. So I don’t look for the planters to come back out of the shed this week!
Dean Shields, Murphysboro, Jackson County: I got most of my corn planted. The weather was nice all week. Spring has been good for me so far and it has not been quite as wet. We haven’t had any high water yet. Wheat is growing pretty good since the weather has been good, so hopefully it will turn out decent.
Ken Taake, Ullin, Pulaski County: It has been a really busy week here in deep southern Illinois. It finally dried out enough that there was spraying, applying fertilizer and even some corn planting. I know there has been at least a substantial amount of corn planted in the county. We managed to plant a small amount. As I called in this report on Thursday evening, it was raining again. We will have to see how long it is going to keep us out of the field. Please take time and be careful as we are in this busy season.
Vermont legislature approves mandatory GMO labeling
Vermont became the first state last week to pass a bill requiring genetically modified foods to be labeled. Vermont legislators approved the measure, which members of the U.S. food industry fear could result in a jumble of state regulations. They further noted
Immigration
Ryan Whitehouse, IFB assistant director of national legislation and policy development, said people believe that agricultural jobs held by migrant workers are low-skill and low-paying. Neither is true, he said. Harry Alten, a farmer from Harvard, who spoke during a panel discussion in Rockford, agreed. “A lot of people just think it’s grunt work,” Alten told FarmWeek. “My employees have a lot of skills.” But Alten says he isn’t optimistic Congress will pass immigration reform. “We get a lot of rhetoric, a lot of talk, a lot of sympathy, but they’re so afraid of doing anything that might jeopardize their re-election campaign, they get nothing done,” he said. Mark Peters, Caterpillar corporation counsel, said immigration reform also is important to Midwest manufacturing companies, such as Caterpillar. “This current broken system put us at a distinct disadvantage in competing with our foreign competition in attracting and retaining world-class STEM talent,” he said. (STEM stands for science, technology, engineering and mathematics.) He also said there’s a misperception that immigrant workers take jobs away from Americans. He pointed to a Wall Street Journal story that showed the opposite is true — for every foreignborn U.S. college graduate that stays in the United States, five new jobs are created, which in turn creates additional supplier jobs. continued from page 1
PEDV USDA must work out what information will be required in the PEDV reports, who will report it (farmers, veterinarians or others) and whether it will be done at the state level or reported directly to USDA, Ernst noted. “USDA is putting a group together to set a plan in motion,” he said. The World Organization for Animal Health lists PEDV as a nonreportable disease. The status doesn’t affect trade, but it makes it difficult to get a handle on the total number of pigs affected by PEDV nationwide. Estimates of piglets lost to PEDV the past year range from 2.6 million to 5 million-plus. USDA’s plan to require reporting of PEDV includes tracking movements of pigs, vehicles and other equipment that enters and leaves affected premises. USDA as of last week didn’t provide a timeline for implementation of the new PEDV reporting and tracking requirements. from page 1
the action could cause increased food costs and consumer confusion. The Associated Press reported the new labels will say “produced with genetic engineering” for packaged raw foods, or “partially produced with genetic engineering” or “may be produced with genetic engineering” for processed food that contains products of genetic engineering. Meat and dairy would be exempt. Members of the Grocery Manufacturers Association said they are determining a response to the action. The group could propose a legal challenge or only label foods sold in Vermont. The grocery association favors federal labeling requirements only if U.S. Food and Drug Adminis-
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.
tration (FDA) officials determine a health or safety risk. Illinois Farm Bureau policy supports FDA science-based labeling if a food is significantly different than its traditional counterpart or if a specific constituent is altered nutritionally, or affects allergenicity. A bipartisan bill introduced recently in the U.S. House of Representatives would prohibit individual states, and any local government, from passing rules that require mandatory GMO labeling. The bill, formally called the Safe and Accurate Food Labeling Act, would instead allow companies to voluntarily label foods with GMOs. IFB and American Farm Bureau Federation support the bill, HR 4432.
AROUND ILLINOIS
FarmWeek Page 8 Monday, April 28, 2014
Farm Credit gifts benefit young people, agriculture BY KAY SHIPMAN FarmWeek
Education, life-changing experiences and new technology comprise only part of the benefits gained from 1st Farm Credit Services (FCS) donoradvised fund. This year’s recipients shared stories last week of how they used 2013 funds when the IAA Foundation awarded $118,500 from the 1st FCS fund, marking the fourth dis-
tribution. “We’re enjoying doing this. It’s a great experience for our board,” said Roger Schrodt, a Galesburg farmer and vice chairman of the 1st FCS board. Illinois Agriculture in the Classroom (IAITC) plans to adapt educational technology that will “bring pictures to life” and QR (quick response) codes in addition to other technology, reported Jackie Jones, Illinois Farm Bureau education manager. Students representing high schools, FFA, 4-H, Illinois State University (ISU) and Western Illinois University (WIU) recounted how the funds became seed money for projects and allowed them to attend leadership conferences or compete in contests. “Your efforts have exceeded our expectations,” Schrodt told the assembled recipients. The funding was divided among the University of Illinois College of Agricultural, Consumer and Environmental Sciences, $21,000; ISU
Department of Agriculture, $7,500; and WIU School of Agriculture, $7,500. Other recipients included: IAITC, $19,000; Illinois Ag
FarmWeekNow.com
Go to FarmWeekNow.com to view a video on the 2014 recipients of the 1st Farm Credit Services donoradvised fund.
Leadership Foundation, $19,000; Illinois FFA, $6,000; Illinois 4-H, $6,000; AgrAbility Unlimited, $5,000; Cook County Farm Bureau Foundation, $5,000; Annie’s Project for education of farm women, $6,250; and Illinois Agri-Women for annual female student conference, $6,250. This year for the first time, Northern Illinois University received $5,000 for its local food planning and technical assistance program. First-time recipients also included Joliet Junior College’s agriculture and horticulture sciences department, $2,500, and Chicago High School for Agricultural Sciences’ ag finance pathway, $2,500.
Jackie Jones, right, Illinois Farm Bureau education manager, explains augmented reality technology to Roger Schrodt, a Galesburg farmer and vice chairman of the 1st Farm Credit Services board. Illinois Agriculture in the Classroom plans to use funds to adapt the new technology for education. (Photo by Kay Shipman)
Visit FarmWeekNow.com for a video with comments by recipients and 1st FCS representatives. Since 2010, the IAA Founda-
tion has distributed $380,000 from 1st FCS donor-advised fund, impacting more than 800,000 people.
Farm Service Agency
SAVE TIME — MAKE AN APPOINTMENT WITH FSA — As FSA rolls out farm bill programs, there will be related signups and in some cases multiple management decisions that need to be made by producers. To ensure maximum use of time and full attention by FSA staff, call your local FSA office to set an appointment and discuss any records or documentation you may need to bring to the appointment. For local FSA Service Center contact information, please visit: offices.sc.egov.usda.gov/loca tor/app}.
DIRECT LOAN CHANGES — Changes to FSA regulations as a result of the 2014 farm bill were made to the interest rate charged on loans where FSA provides 50 percent or less of the financing on jointly financed purchases of real estate, also called Direct Farm Ownership Participation Loans. The inter-
est rate will be the greater of 2.5 percent or the current interest rate for direct Farm Ownership loans minus 2 percent, as a fixed rate for the duration of the loan. At present, the March direct Farm Ownership rate is 4.25 percent. Because the 2.5 percent floor is greater than subtracting 2 percent from the direct farm ownership loan rate, the rate for Direct Farm Ownership Participation Loans in March is 2.5 percent. GUARANTEED LOAN ELIGIBILITY — Changes to FSA regulations as a result of the 2014 farm bill have removed Guaranteed Operating term limits. Previous and current guaranteed loan borrowers who were not eligible for further guaranteed loans due to the previous 15-year eligibility term limit may now be eligible for further guaranteed loans through their commercial lender.
FROM THE COUNTIES
Page 9 Monday, April 28, 2014 FarmWeek
Ameren hosting public forums on transmission line project
Ameren Transmission Co. of Illinois will host six open houses this week on its proposed Spoon River Transmission Line project. Ameren proposes to build a 345,000-volt transmission line to connect Galesburg and Peoria. The meetings will occur in three locations within the project area and provide attendees a project overview and opportunity to ask questions. The same information will be provided at each meeting. Dates, times and locations are: Today (Monday), 5 to 8 p.m., Best Western Prairie Inn, Galesburg; Tuesday, 10 a.m. to 1 p.m., Best Western Prairie Inn, Galesburg, and 5 to 8 p.m., WyHi Stark Community Center, Wyoming; Wednesday, 10 a.m. to 1 p.m., WyHi Stark Community Center, Wyoming, and 5 to 8 p.m., Grand Hotel Conference Center, Peoria; and Thursday, 10 a.m. to 1 p.m., Grand Hotel Conference Center, Peoria. Later this year, Ameren will file a petition with the Illinois Commerce Commission (ICC) asking the ICC to approve the project and transmission line routes being recommended. For more information, visit {SpoonRiverTransmission.com} or call 800-295-8912.
Chicago Far mers to focus on global policy
The Chicago Farmers will hear about global agriculture policy at their annual meeting May 12 in the Illini Center, Chicago. Registration will start at 11:30 a.m. followed by the meal and program at noon. Tamara Nelsen, Illinois Farm Bureau senior commodities director, will give an update on global policy, and changes in agricultural export trends and trade policy.
The early registration deadline is May 5. Before the deadline, member and member spouse tickets will cost $25 each and guest and nonmember tickets will cost $50 each. After that date, member and spouse tickets will cost $35 each and guest and nonmember tickets, $60. For reservations or information, visit the Chicago Farmers at {chicagofarmers. org}.
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UREAU — Farm Bureau will sponsor a trip July 20-23 to St. Louis, Mo. An informational program about the trip will be at 10:30 a.m. Monday at the Farm Bureau office. Call the Farm Bureau office at 8756468 for more information. Deadline to register for the trip is May 30. • Bureau and Lee County Farm Bureaus will co-host a golf outing to benefit Agriculture in the Classroom beginning at 9 a.m. June 20 at Timber Creek Golf in Dixon. Cost is $200 for basic registration, $225 for super registration and $250 for premium registration. Call the Farm Bureau office at 875-6468 to register by June 6. • Farm Bureau will cosponsor a tractor trek at 8 a.m. June 21. Cost is $50. All proceeds will benefit Agriculture in the Classroom. Contact the Farm Bureau Foundation to register by June 6. • Farm Bureau will cosponsor Summer Agricultural Institute II June 16-17 for educators. Call the Farm Bureau office at 875-6468 for pricing, registration and more information by May 30. OOK — Farm Bureau will sponsor stroke prevention screenings at 9
C
a.m. May 13 at the Farm Bureau office. Members will receive a discount. Call 877732-8258 for an appointment by May 9. • Farm Bureau will host a concealed carry course from 9 a.m. to 5 p.m. May 17-18 at the Farm Bureau office for members. Cost is $200 (16hour course), $150 (12-hour course) and $100 (8-hour course). A discount will be offered for spouses registered. Call Tim at 815-5453978 for additional information. Register at {allccw.com/ event-registra tion? ee=75} by May 12. • Farm Bureau will offer soil testing. Cost for one test is $20 for members and $30 for nonmembers. Cost for two tests is $30 for members and $40 for nonmembers. Call Melanie at 708-354-3276 for more information. • Farm Bureau will partner with the University of Illinois Extension Master Gardeners to provide an in-suite resource center at the Farm Bureau office. Resource center hours are 9 a.m. to 1 p.m. Monday, Wednesday and Friday through Nov. 14. For gardening assistance, call Master Gardener volunteers at 708-354-3276 or email mastergardener@cookcfb. org.
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RUNDY — Farm Bureau will offer a summer internship to a college student interested in pursuing a career in the agriculture industry. Resume and cover letter may be mailed to the Farm Bureau office at 4000 N. Division St., Morris, Ill., 60450 by May 12. For position details, contact Tasha Bunting at 942-6400. ANGAMON — The AgVenture Barn Tour will visit nine elementary schools this week reaching approximately 2,000 students. ASHINGTON — The Women’s Committee will co-sponsor a CPR/First Aid course at 5 p.m. Tuesday at the Farm Bureau office. Cost is $10 for members and $15 for nonmembers. Call the Farm Bureau office at 327-3081 to register or for more information. ILL — Farm Bureau will co-sponsor a community garage, craft and vendor sale from 8 a.m. to 2 p.m. June 7 on the Farm Bureau grounds. Cost for a vendor space is $20. Proceeds will benefit the Foundation scholarship fund. Call the Farm Bureau office to register or for more information by May 29.
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Did you miss the farm bill webinars? Illinois Far Farm m Bur Bureau eau® of offered fffer fered thr three ee farm farm bill webinars this month as a service to members.
Commodity Title Options Crop Insurance Changes & Supplemental Coverage Option Dairy Provisions & Livestock Disaster Provisions
www.FarmWeekNow.com www.ilfb.org/farmbill
Wa Watch atch F FarmWeek armWeek k®, FarmWeekNow.com FarmWeekNow.com and and listen isten to to your your local local radio radio station sttation that that carries carries the the RFD RFD Radio Radio Network Network® ffor or a additional dditional iinformation nformation in in the the coming coming days, days, weeks weeks and and months months about about new new farm farm bill bill news news you you can can use. use.
PROFITABILITY
FarmWeek Page 10 Monday, April 28, 2014
Fertilizer markets: To spring and beyond
The ramifications of this extreme winter continue to play out in fertilizer markets as spring begins. Iced-over rivers and snowed-in railcars finally gave way, but “follow-on” delays of anywhere from 14 days Joe Dillier (barges from New Orleans) to a month (potash rail shipments from western Canada) continue to dominate the fertilizer supply chain. These may or may not be felt yet this spring, depending on how great the final demand is. Canada’s mandate to its rail carriers to prioritize shipping western Canadian grain has been a complicating logistics factor, too. Last fall’s big harvest has struggled to find its way to export markets. The newly instated mandate is choking potash supply into the U.S. and eastern Canada resulting in a difficult situation. It may not be “rocket science,” but rail logistics is a subject more complex than many give it credit for. Beyond spring, the question is whether rail bottlenecks will eventually work themselves out, or whether the new world BY JOE DILLIER
economic standpoint though, Russia should want Ukrainian nitrogen production to run so that it can sell Ukraine the natural gas it needs to produce that nitrogen. • Egypt is facing more severe energy shortages and power outages. Egypt is a large exporter of nitrogen. The country desperately needs hard currency and may be forced to prioritize nitrogen production so that it can earn currency. Like Ukraine, politics play a
big factor in this situation. • China has become a massive exporter of nitrogen in the form of urea. It seems as though it will be choking on the stuff by July and exporting more than last year’s record. Cheap urea would mean cheaper ammonia and UAN solution, too. The question remains whether pollution problems and domestic pressures arising from them could cause a sudden governmentdirected shutdown, driving a
Cattle producers have a great opportunity to connect with consumers as National Beef Month begins this week (May 1). The Illinois Beef Association (IBA) plans to encourage members to talk to consumers about cattle production and quality products produced by the industry. “We’re always excited to promote May Beef Month not only for producers, but for consumers, too,” said Jill Johnson, IBA director of communications. “May is the start of grilling season.” Johnson suggested farmers talk to consumers so they better understand how cattle are raised and what happens on farms. Cattle producers can use
the opportunity to discuss and promote the quality of U.S. beef products. IBA also plans to work with consumers on tips to better stretch their food dollars at a time when beef and other meat prices are at historical highs. “We encourage producers to go to schools, help with grilling events and other activities to promote beef and get the word out there,” Johnson said. Gov. Quinn recently signed the May Beef Month proclamation in Illinois. Reid Blossom, IBA executive vice president, said the cattle industry is expanding in Illinois and other Midwestern states after years of contraction. “This is a time of real prosperity for beef producers,” Blossom said. “We see expansion in the cattle feeding sec-
tor. We’re excited about the future of the industry.” Prices recently reached record highs for feeder calves and cattle coming out of feedlots, Blossom added. Visit the
IBA website {illinoisbeef.com} for more information.
was placements. They were more than 5 percent less than the average trade guess.” Good predicted a continuation of profitable margins for beef producers in the foreseeable future. However, the market could feel seasonal pressure near term. “Despite (the friendly report) we still need to recognize the seasonal pattern,” Good said. “We’ve got bigger supplies moving from spring to summer. Because of that I expect the fed market could be a little softer than where we’re at today through May, June and into July.” Prices late last week hovered around $145 per hundredweight for April live cattle and $180 for May feeders. Warmer weather in coming months should be positive for cattle producers, though, as it will boost forage availability and usher in the grilling season, which should support beef demand, Good noted. The latest cattle on feed report also showed a continuing trend of beef cattle movements
from the west and southwest to the Corn Belt, Good said. Cattle inventory numbers in the latest report compared to last year declined 10 percent in Oklahoma, 3 percent in Texas and 2 percent in California. On the flipside, cattle inventory numbers jumped 6 percent in Iowa, 3 percent in Nebraska and 2 percent in Minnesota.
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) $39.05-$59.25 $47.13 40 lbs. (cash) $105.00-$140.00 $129.14 This Week 62,062 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 71,445
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $109.15 $111.29 -$2.14 $80.77 $82.35 - $1.58
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week $147.16 $146.86
Prev. week $146.22 $145.98
Joe Dillier serves as GROWMARK’S director of plant food. His email address is jdillier@growmark.com.
Fire up the grill; Beef Month begins this week
M A R K E T FA C T S
Recipts
spike in global fertilizer prices. Bottom line — we should have growing fertilizer production in the coming year, very possibly outpacing the growth in demand. But some big “caveats” could cause the outlook and prices to change suddenly. Then there are those pesky logistics to deal with, too.
of much increased “oil-onrail” shipments plus growth in other rail business is taxing that infrastructure and will keep bottlenecks an issue going forward. Beyond spring, it will pay to watch developments in Ukraine, China, and Egypt. • Ukraine is a large exporter of nitrogen. If the dispute with Russia escalates into a supply disruption, it would drive nitrogen prices up globally, rippling through markets here. From an
Change $0.94 $0.88
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 $179.10 $178.57 $0.53
Lamb prices Negotiated, wooled and shorn, 125-169 lbs. for 140-182 $/cwt. (wtd. ave. 164.40); 170-208 lbs. for 150-161 $/cwt. (wtd. ave. 153.08)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 4/17/2014 5.1 18.2 63.0 4/10/2014 9.9 26.2 58.3 Last year 5.1 26.4 12.8 Season total 1509.6 1020.1 1055.1 Previous season total 1237.3 871.6 470.5 USDA projected total 1580 1175 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Rita Frazer, RFD Radio Network® anchor, contributed to this report.
Lower March cattle placements surprise trade BY DANIEL GRANT FarmWeek
USDA’s monthly cattle on feed report released Friday was price friendly as inventory numbers came in below trade expectations.
FarmWeekNow.com
We have comments from CattleFax’s Kevin Good on the latest USDA report at FarmWeekNow.com.
The inventory of cattle and calves on feed as of April 1 totaled 10.86 million head, down 1 percent from last year. The trade prior to the report expected the inventory to be similar to last year. Meanwhile, placements in feedlots in March totaled just 1.79 million head, down 5 percent from a year ago. The trade generally expected a 1 percent increase in marketings. “It was a somewhat friendly report compared to trade estimates,” Kevin Good, CattleFax senior analyst/fed cattle market specialist, told FarmWeek. “The big surprise
PROFITABILITY
Page 11 Monday, April 28, 2014 FarmWeek
CASH STRATEGIST
Robust corn exports in spotlight
There’s been a lot of talk in the trade this week about the robust pace of corn business since the beginning of the year. But compared to last years’ experience, this year’s export demand was going to seem robust. Early on, there were signs corn exports could be very good this year. It didn’t get much notoriety early on because the focus was on soybean exports. Starting last fall, seeds were being sown for potentially good demand. Having gone through three years of persistent high prices, and occasional supply tightness, there was a need for end users around the world to rebuild working inventories. Having prices back at their lowest levels since 2010, and potentially having the largest feed grain supplies since that time, may have encouraged end users to build some modest reserve inventories as well. Corn’s low price relative to soybeans fostered ideas that acreage would shift away from corn to soybeans in South America this past winter, as well as the U.S. this summer. The situation in Brazil was particularly important as their second-crop corn had undermined our exports the
last couple of summers. But with prices 25 percent higher than their winter lows, we are starting to see new demand weaken. That will diminish the commercial buying interest in futures that comes with offsetting the risk of the new export sales. Instead, the demand will continue to shift to the cash sector to fill sales that have been made — our unshipped export sales. The year 2007-08 is the only recent year in which the unshipped sales were as large as this year. They were built even earlier in the marketing year and were already winding down by this time. The need to fill commitments on the books should strengthen basis into June, especially in areas tributary to the river system. However, it has steadily been gaining over the winter. And transportation levels have already fallen about as much as they are going to. So, gains from here may be limited. About the only thing that might weaken corn basis might be an unexpected surge in futures (and flat) prices. But, if futures would slide, it could lift basis a little more. Once summer begins, if crop prospects look good, farmers may be stimulated to sell remaining old-crop inventories, weakening basis levels slightly. But it may not have much impact given the export book to be filled.
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Corn Strategy
ü2013 crop: Export shipments should remain strong, but new buying interest is more subdued than it was earlier this winter. Leave an order to price another 10 percent if July futures hit $5.25. Use rallies to get caught up to recommendation. ü2014 crop: Use rallies over $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: Events in Ukraine continue to underpin the grain markets, but the situation has not gotten tense enough again to become a major influence. Spring planting there and in Russia has gone relatively well. Planting in the U.S. has gotten off to a slower start than the trade would like to see, but it’s still well ahead of last year. Monday’s national number could be close to 20 percent; last year it was 5 percent. Demand for corn remains good, illustrated by last week’s inspections number.
Cents per bu.
Soybean Strategy
ü2013 crop: U.S. supplies will be tight this summer, but most of the necessary adjustments have probably already been made. Meanwhile, supplies are relatively abundant in the world. About the only thing that might carry prices significantly higher is weather. We do not recommend owning inventory. ü2014 crop: In the short term, weather should dominate the trade. But unless it gets wet enough to push acreage into prevent plant, plantings will still match the USDA forecast, if not exceed it. We could recommend another small sale at any time. Check the Hotline frequently. vFundamentals: Two more cargoes of Brazilian soybeans have been resold by China to the U.S. The total of known cargos is now four, along with two cargoes of soybean meal having been sold into the Southeast. Rumors have more, but there’s no way to confirm them. Their port basis levels are firming, suggesting the necessary adjustments have been
made. Argentine harvest is rolling along, now 42 percent complete.
Wheat Strategy
ü2013 crop: There is some concern export sales might not hit the USDA target, but weekly sales were promising at 12.5 million bushels. Sales for the crop year are 97 percent complete and only require weekly sales of 5.64 million bushels to meet the estimate. Wrap up sales now. ü2014 crop: Weather has been the main focus with precipitation in the lower Plains
continuing to fall short of normal. The trade will watch Monday’s crop conditions report closely. Hold new-crop sales at recommended levels. vFundamentals: Just as some risk premium was being shaved off wheat futures due to easing Black Sea tensions, Russia ratcheted up its rhetoric and made for an uneasy weekend. Barring any major developments in the situation, the trade will focus on weather until the potential of the new crop is well established. The annual Kansas wheat tour this coming week will be closely watched.
PERSPECTIVES
FarmWeek Page 12 Monday, April 28, 2014
We’re a farm state that has to import most of our food
Illinois considers itself a farming state, and with more than 20 million acres of corn and soybean production, it’s easy to see why. However, when we consider that the state imports 95 percent of its food from outside our border, you have to scratch your head and ask why? Sure, we MIKE grow corn and ROEGGE soybeans and other feed crops, but we don’t really grow food crops. I consider feed crops and food crops two separate items. The feed crops of corn and soybean we grow are, for the most part, used to feed livestock, power engines or for export. And although most of the products you will purchase in the grocery store contain either corn or soybean byproduct this isn’t a particularly large segment of our crop. Food crops, by my definition, are crops found in our diets: fruits, vegetables, breads,
meat, dairy, etc. And in this respect, Illinois is severely lacking in product and producers. To be fair, we do raise a higher portion of our meat within our state compared to fruits and vegetables. But not nearly enough to allow us to be selfsufficient. As a result, the average distance food travels to arrive at our grocery store is 1,500 miles. Much of it is produced in more protected climates, such as California, Florida, Mexico and elsewhere. And a number of the fruits and vegetables we enjoy can’t be grown in our state simply due to the environment — bananas and oranges for instance. However, there are tremendous opportunities for corn and soybean producers to enter into the food market. Never before
has demand for locally grown products been as high as it is now. Grocery stores are clamoring for local produce. The problem is there isn’t a steady supply of quality and quantity. Part of this is due to our limited growing season. And part of the problem is the profitability of modern agriculture. Never in history have we witnessed the economic returns we’ve seen in the past five to six years in production agriculture. I say this in jest, but at the market high, an acre of corn came close to the income of some vegetables. And that acre of corn could be produced while enjoying the comforts of an air-conditioned cab. But with Illinois only producing 5 percent of its food needs, we’ve certainly got
opportunities. And the income possibilities that exist with fruits and vegetables to support bringing in another family into the operation certainly needs to be considered. Most vegetable operations of 20 to 50 acres can economically support one or more families. And it’s certainly much easier to find 50 acres to bring in another family member than it is to find 1,000 acres of corn, or another confinement unit, etc. But the market needs to be developed. There are probably several markets within 30 miles of your front door for a load of soybeans, but are there similar markets within the same distance for a load of green beans? Those markets do exist, but they’re not as readily apparent. The other attribute of locally raised fruits and vegetables is taste. I myself refuse to purchase a tomato in the grocery store. It simply doesn’t taste like anything I can identify. I’ll wait until July to eat a fresh tomato or wander down to the basement freezer for that bag of frozen tomatoes. You have to wonder then,
Immigration reform is one of the most important challenges facing American agriculture. While Washington is gridlocked on many issues, most members of Congress recognize that the ROBERT GIBLIN current immigration system in the United States is broken. However, there are strong disagreements on the meaning of “reform” as well as how to fix the system. Often lost in the discussion are the unintended negative consequences of only doing part of the job and not passing complete, responsible immigra-
tion reform, including decreased domestic food production and higher prices. Labor is farming’s third-highest expense — 17 percent of production costs averaged across all sectors, and 35 to 48 percent in labor-intensive subsectors, such as fruits, vegetables and horticulture. In the last decade, hired farm workers have grown in importance among other sectors, including dairy, hogs and poultry. Yet farming is hard work; farm labor is hard to find and harder to keep. Most Americans have “outgrown” farm work; they are unwilling to take farm jobs even if unemployed. As a result, farmers have come to rely on an immigrant labor force — an
estimated 70 percent of which are in undocumented status. Agriculture craves stability and access to a legal workforce. A newly released report shows that will happen only through responsible and complete immigration reform. “Gauging the Farm Sector’s Sensitivity to Immigration Reform,” commissioned by the American Farm Bureau Federation and conducted by World Agricultural Economic Environmental Services, studied several immigration reform alternatives. The report was released in conjunction with the #IFarmImmigration grassroots campaign, a month-long initiative sponsored by AFBF and the Partnership for a New American Economy, to promote the
need for immigration reform. According to the report, the best option includes enforcement, an adjustment of status and work authorization for experienced agricultural workers, and a redesigned, efficient guest worker program. With only a 1 percent impact on farm income and negligible effects on food prices, this option has the fewest negative effects for farmers and consumers alike. Two other options — enforcement-only and enforcement plus legalization — would drain the pool of agricultural workers. Enforcement-only would reduce farmers’ access to labor, while enforcement plus legalization encourages workers to leave the agricultural industry. Both options leave farmers with
Wind energy turbines pose noise concerns
time noise regulations since 1993. How many huge wind turbines were operating in rural counties in 1993? People who say there is not noise have not tried to sleep in a home 1,600 feet or less from these turbines. I am sure the wind industry doesn’t want a change in the law. They have had it their way by picking off one county at a time. Most of the setbacks from occupied residences have been set at 1,200 feet or less. The World Health Organization has recommended 1¼ mile from the nearest residence. That is 6,600 feet not
the measly 1,200 feet now used by counties. If you cannot sleep in your home, you cannot stay there. Michael S. McCann, a state Certified Real Estate Appraiser, conducted an extensive study in Adams County. His conclusion was that property values drop 25 to 40 percent for property within 2 miles of the turbines and some that are very close exhibit nearly complete loss of marketability. He recommended a property value guarantee by the developer to homeowners within 2 miles of the turbines. Health impacts are well doc-
how many folks know what real food tastes like? And by real food I mean food that was harvested at its freshest, when the taste is at its fullest. How do you describe the taste of a just-picked tomato to someone who has never experienced it? What percent of the residents of Bloomington know what real food tastes like? Wouldn’t it be wonderful if instead of importing fruits and vegetables each summer, Illinois growers could supply our stores with fresh, great tasting product? Think of the economic boost that would provide. Where to find local produce? Google any of the following: Buy Fresh, Buy Local; Local Harvest; Where Fresh Is; Local Foods Directory; Eat Fresh, Eat Local. And there are many others as well.
Mike Roegge serves as a University of Illinois Extension educator in local food systems and small farms based in Quincy. As president of the Illinois Extension Agricultural Association, he serves as its liaison to the Illinois Farm Bureau Board.
Agriculture needs responsible immigration reform now
Editor: How many of you would be willing to give up your right to sleep in your home? This is exactly what the wind turbine industry is doing to residents by constructing these turbines too close to homes. The noise is a constant low frequency sound that pulsates with each revolution of the huge blades. People have had to abandon their homes because of sleep deprivation. The Environmental Protection Agency has not changed night-
LETTER TO THE EDITOR umented by Dr. Nina Peirpont.
The World Health Organization and medical professionals from the United States, France, Canada and many other countries report the noise can be
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no ability to find replacements. If Congress passes one of these latter options, food prices could increase 5 to 6 percent over five years. Fruit production could be cut by 30 to 61 percent, vegetables by 15 to 31 percent and meat by 13 to 27 percent. Agriculture needs responsible immigration reform. This study shows that if not done correctly, the tradeoffs can be costly not only to farmers across the country, but to consumers who expect safe and affordable produce when they go to their local grocery store.
Robert Giblin consults, writes and speaks about agriculture and food industr y issues and trends.
heard or “felt” as far as 2 miles away. Wind turbines should never be built next to homes. PHILLIP HARTKE Teutopolis
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