IT’S STILL UNCERTAIN how much damage frost caused to the tree fruit crops across Central and Northern Illinois. ..................2
LANDOWNER protections sought by Illinois Farm Bureau are included in an Illinois Senatepassed “fracking” bill. ....................3
AN AvERAgE hAy CROp appears to be in the making, according to the president of the Illinois Beef Association. ............10
Monday, April 30, 2012
Two sections Volume 40, No. 18
DOL to pull controversial labor proposals BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
In withdrawing proposed new ag child labor guidelines, the U.S. Department of Labor (DOL) has reached “the right decision for our nation’s family-based agriculture system,” American Farm Bureau President Bob Stallman said last week. Late in the week, DOL announced plans to pull controversial proposals that would have tightened restrictions on “hazardous occupations” that can be performed by teens or children. Farm Bureau had worked hard to kill the proposal. Farmers had feared new rules would severely limit farm activities, ag educational opportunities, or even non-ag jobs for young people on the farm or agribusiness. Ag groups charged the plan would have reinterpreted DOL’s exemption for chores performed by farm family members, potentially blocking minors from working on a grandparent’s or uncle’s farm. DOL indicated it would continue to exempt children on farms owned or operated by their parents, even if their farm
is part of a family partnership or corporate agreement. Stallman argued DOL’s decision to withdraw new rules “would not have happened without the efforts of Sen. Jerry Moran (R-Kan.), Rep. Denny Rehberg (R-Mont.) and others in Congress.” Rep. Tom Latham (R-Iowa) had garnered 61 co-sponsors for his Preserving America’s Family Farm Act, which sought to block new restrictions. Moran and Sen. John Thune (R-S.D.) had recruited 44 cosponsors, including Highland Park Republican Sen. Mark Kirk, for their companion bill. In addition, Farm Bureau was armed with a new USDA study charting improved juvenile safety on the farm. According to the report, onfarm, ag-related injuries among individuals under 20 had dropped from 13.5 injuries per 1,000 farms in 2001 to 7.2 per 1,000 farms in 2009 — a 54 percent reduction. “I think this speaks to the awareness of farmers and ranchers of the risks involved in agriculture, in ensuring
youth are working on tasks that are age-appropriate and are trained,” AFBF labor specialist Kristi Boswell told FarmWeek. “That firsthand experience
is invaluable to someone working in this arena. “This shows the ability of farmers to ensure safety on their farms without broad, sweeping federal intervention.”
Stallman, meanwhile, pledged to continue working with USDA, DOL, and other “rural stakeholders” to develop a program to promote safer ag working practices.
A ‘PEAS FULL’ SPRING
Mason County Farm Bureau President Randy Fornoff inspects the blossoms in his field of peas that started blooming last week. Fornoff and his brother, Doug, farm near Havana and expect to harvest this crop, which is grown under contract for Del Monte, in mid- to late May. (Photo by Dee Dee Gellerman, Mason County Farm Bureau manager)
Economist refutes ‘free’ insurance proposal
Committee OKs farm bill plan
As the U.S. Senate Ag Committee last Thatcher called committee approval “a week OK’d farm program proposals that really positive step” toward final farm bill would put more safety net weight on crop passage — ideally by August. insurance, the activist Environmental WorkThatcher nonetheless is closely watching ing Group (EWG) proposed stripthe House Ag ComFarmWeekNow.com ping the insurance net to its basics. mittee, which was To listen to RFD Radio Network conducting ag hearVarious commodity groups offered mixed reviews for the ag reports on the latest farm bill ings last week. Given committee’s newly approved 2012 developments, go to Farm- controversy over WeekNow.com. farm bill blueprint, which would nutrition programs, eliminate future farm direct payments conservation, and other and replace current countercyclical and Average farm bill issues, Senate Majority Leader Crop Revenue Election (ACRE) programs with Harry Reid (D-Nevada) may be reluctant to “take tough, controversial votes on the a new “shallow-loss” farm revenue program and a special program for cotton producers. Senate floor” if House Ag Committee The committee “markup” targets roughly Chairman Frank Lucas (D-Okla.) appears $26 billion in ag spending cuts over the next hesitant to move his own plan, she suggest10 years, in line with levels supported by the ed. Lucas argued “we’ve got a lot of work American Farm Bureau Federation (AFBF). ahead of us,” emphasizing the need for a In an RFD Radio/FarmWeek intercomprehensive bill that will address concerns view, farm policy specialist Mary Kay FarmWeek on the web: FarmWeekNow.com
across “all regions and all commodities.” Thatcher also is concerned about the full House adhering to a $23 billion threshold for cuts, given recent proposals to slash $33 billion in long-term savings from nutrition alone. The Senate bill would maintain the current structure of and funding for the federal crop insurance program, as well as preserving existing crop insurance premium subsidies. The committee also proposes a number of small improvements to the system, including a new Supplemental Coverage Option that would enable growers to stack a county-level revenue program on top of lower-level individual coverage guarantees. Senate action followed on the heels of an EWG report proposing to pull further savings from crop insurance. The study’s author, Iowa State University ag economist Bruce Babcock, proposes See Senate, page 4
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, April 30, 2012
Quick Takes C O R P S C A R P F U N D I N G — U. S. S e n . D i ck Durbin, a Springfield Democrat, announced Senate Appropriations Committee approval of $27.5 million Durbin sought to aid U.S. Army Corps of Engineers efforts to prevent the spread of invasive species, including Asian carp, between the Mississippi River Basin and the Great Lakes. Funding was included in the Senate Appropriations Committee’s fiscal 2013 energy and water development spending bill, which now awaits action by the full Senate. “Thousands of people in the tourism and fishing industries rely on a healthy Great Lakes ecosystem for their livelihood,” Durbin said. “Asian carp is the No. 1 threat to their way of life. “With so much at stake, we need to do everything we can to stop this invasive species. This bill takes a comprehensive look at the problem and authorizes and funds several different strategies to address it.” FFA ONLINE TV CHANNEL — The National FFA Organization is developing its own online TV channel on the iHigh.com platform after the successful live broadcast of its 2011 national convention. More than 53,000 people attended the convention and an additional 550,000 viewers watched portions of it via the online channel. The FFA channel will use the latest in web technology to reach its more than a half-million student members across the United States, Puerto Rico, and the Virgin Islands. FFA has entered into a licensing agreement with Alltech, which will allow some personalization for state and local chapters. Each state chapter will have its own site that may be used to highlight awards banquets and other special events. All sites will have the ability to generate revenue for the organizations. MARKET SENSITIVITY — The market for foods made for consumers with food allergies is set to drastically increase as more and more people are showing signs of food intolerances. According to the “Food Allergy and Intolerance Products — Global Strategic Business Report,” U.S. sensitivities and allergies to food grew 18.5 percent in the last decade. The report also says growing consumer preference for wheat-free and gluten-free diets is heavily weighing into the growing market. It points out consumer demand for lactose-free products as a rising growth segment. Between 35 million and 50 million Americans are lactose intolerant, causing food companies to capitalize on the market with a wide range of dairy-free products. The report also points out that better diagnosis of allergies, improved labeling regulations, and enhanced taste of specialty foods also are major contributors to the growing market.
(ISSN0197-6680) Vol. 40 No. 19
April 30, 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
Frost damage of fruit crop varies among varieties, trees apple crop’s fate. In Peoria County’s Christ Orchard near The jury is still out about the amount of Elmwood, the situation is similar, according to damage done by frost to the tree fruit crops owner Kurt Christ. Christ Orchard raises apriacross Central and Northern Illinois. cots, plums, and 50 varieties of apples on 20 Although some damage is evident, two acres. The Christ family also operates a grain orchard owners told FarmWeek they still did farm. not know how much of their crops will emerge Christ said he had talked with fellow growunscathed after a frost the secers and suppliers around the ond week of April. state and region, and he specu“When it (spring) comes a lated the frost has cut the fruit month early, you cross your fincrop yield in the northern two‘ T h e w a y t h i s thirds of the state. gers,” said Joe Moran, owner of Moran’s Orchard, near Trilla in (crop) looks now Unlike other types of crops Coles county. that can put on additional either it’s a go or Variability is the watchword. blooms, fruit trees bloom once a no go.’ Different varieties of apples and that determines the yield are more susceptible to cold for that year, Christ and Moran than others. In part, it depends noted. —Kurt Christ on when each variety blooms. “It (crop damage) was just so Peoria County Frost damage also varied variable, depending on how orchard owner depending on whether the fruit cold it got,” Christ said. “I’ve was growing higher or lower on never seen so much variability.” the tree, if the tree was located The Christ Orchard has lakes, on higher ground or flat or low and the water helped with air ground, and if there were factors, such as a lake, movement. Near the lake, the fruit on one that caused air movement. plum variety looks perfect, while another vari“I have a good crop of peaches on high ety away from the lake didn’t fare well. ground. My peaches on flat ground, the trees Some apple trees have lost nearly all their are bare,” Moran said. He speculated he may apples, while the crop looks good on trees that have lost half his crop. had some protection. Moran’s Orchard raises 10 varieties of Christ also said he believes he will have a peaches on about 8 acres. The orchard also fruit crop, but did not know yet what portion produces 20 varieties of apples on 25 acres. may be damaged. The orchard also raises plums and pears. “The way this (crop) looks now, either it’s a Moran said he was not sure about his go or a no go,” he said. BY KAY SHIPMAN FarmWeek
Frost named interim executive VP of IBA Cimeron Frost, Tallula, recently has been named interim executive vice president of the Illinois Beef Association (IBA). He succeeds Maralee Johnson, Cimeron Frost who passed
away in March after working for IBA 23 years, including the last 13 as executive vice president. Frost was appointed to serve on the committee that created the Illinois Beef Expo in 1986. In 1989, he was elected to the IBA Board of Directors and subsequently was elected vice president.
He was hired as IBA’s vice president of member services in 1994 and in 2001 was named director of industry programs. Frost and his wife, Rachel, own a purebred and commercial cattle operation in Central Illinois. They have five grown children and three grandchildren.
Page 3 Monday, April 30, 2012 FarmWeek
STATE
Some legislative concerns addressed, others remain BY KAY SHIPMAN FarmWeek
Illinois Farm Bureau last week made progress on some bills in the General Assembly and continued to address concerns in others. The Senate passed SB 3280, sponsored by Sen. Michael Frerichs (DChampaign), that would establish rules for hydraulic fracturing to extract natural gas. Earlier, IFB, the oil and gas industry, and environmental groups agreed on language to address concerns about fracturing, said Kevin Semlow, IFB director of state legislation. Hydraulic fracturing, also known as fracking, is used to increase the flow of oil or gas from a well and involves pumping liquids under high enough pressure to fracture rock. “This agreement provides the landowner protections that IFB was seeking while also providing a workable reporting process for the industry,” Semlow said. An amendment to SB 3280 was added to require the reporting of the chemical ingredients used in hydraulic fracturing, require well integrity testing
and proper storage of hydraulic fracturing fluids, establish a process for the industry to protect trade-secret information — and provide a process to allow landowners and agricultural tenants to challenge trade-secret protections if they have been affected and need information about the chemicals used. IFB also worked to address concerns about proposed underground carbon dioxide (CO2) storage legislation, sponsored by Sen. James Clayborne (DBelleville). IFB has adamantly opposed the proposed process that would force all landowners to participate in a CO2 storage project if only 51 percent of
landowners sign up to participate. IFB staff has discussed its concerns with Willow Grove Carbon Solutions and its parent company. In its current form, SB 3758 would remove a landowner’s due process protection, and the legislation also has other unacceptable provisions, Semlow said. IFB opposes the bill. An amendment to SB 3758 has been discussed, but no details have been released. The potential also exists for a completely new legislative proposal, Semlow noted. On wind energy policy, proposed legislation was amended after numerous discussions with landowners, wind companies, representatives of local governments, and legislators,
said Paul Cope, IFB assistant director of state legislation. Frerichs also is the sponsor of SB 3271. An introduced amendment would create construction and deconstruction provisions only for commercial wind energy facilities, Cope said. Currently, SB 3271 is being held in the Senate Agriculture and Conservation Committee. Bills dealing with wind energy issues have not been very successful in moving through the legislative process this year, Cope added. Legislation addressing misuse of slow-moving-vehicle (SMV) emblems continued moving in the Capitol. HB 4598, sponsored by Rep. Pat Verschoore (D-Milan) and Sen. Dave Koehler (D-Peoria) is in the Senate. The legislation would increase the current penalty from $25 to $75 for improper usage of the emblems and expand the definition of illegal beyond use in a road right-of-way. Under the bill, a slow-moving-vehicle emblem may be used only on an animal-drawn vehicle, farm tractor, implement of husbandry, and certain special mobile equipment.
‘Bad’ calls throw EMS services off their game BY MARTIN ROSS FarmWeek
When an accident occurs on the farm or a rural road, an ambulance that already has been dispatched for a prescription errand or a toothache can mean the difference between life and death. That’s a challenge for Southern Illinois emergency medical service (EMS) providers who address acute needs across a vast territory with limited resources. A Southern Illinois University (SIU) team is working with EMS-health providers and transit officials to stem “inappropriate requests” that can divert ambulances from critical calls. The SIU Center for Rural Health’s Rural Medical Transportation Network (RMTN) has focused on improving EMS capabilities across Illinois’ 34 southernmost counties. An RMTN-supported EMS Patient Navigator Program has examined local and regional transportation options for residents who otherwise might summon an ambulance to pick up a prescription or for a doctor’s appointment or weekly medical treatments. RMTN receives Illinois Department of Transportation funding to develop pilot programs aimed at moving residents with more routine, non-critical health needs “out of the EMS system and into the public transit system,” project participant Jenna Jamieson told FarmWeek at
last week’s Illinois Rural Health Association conference in Effingham. RMTN works with multicounty shuttle services such as Rides, South Central, and Shawnee mass transit districts. The result has been “less stress on the EMS” in Jackson, Union, and other counties, said Jamieson, who helped conduct a recent survey of factors that impact emergency services. While 84 percent of the 28 EMS agencies that responded to the SIU survey deemed inadequate funding the greatest threat to area services, inappropriate requests also ranked high on their list. Forty-nine percent of the EMS directors polled reported receiving more than 10 questionable calls per month. White County responders, who cover a 500-square-mile area with a single ambulance, reported receiving an average of 30. Should a serious farm accident occur while White County’s lone ambulance is engaged on a non-emergency run, responders from a surrounding county may take as long as 45 minutes to arrive on the scene, Jamieson said. “The chances of (the victim) being able to survive is very, very low,” she warned. RMTN also is involved in a Mobility Navigator Program that helps educate seniors and others on using transit services and educational seminars for health
care providers. Emergency specialists at the IRHA conference reported some hospitals routinely use EMS services to transport patients following their release. And problems generated by inappropriate requests are not limited to more heavily
rural Southern Illinois counties. With a relatively wellequipped 25-vehicle fleet, St. Clair County is “not particularly lacking in ambulances at first glance,” Jamieson said. But the county has a population of about a half-million
(including East St. Louis), and ambulances serve a 1,200square-mile territory. At the same time, Jamieson notes a continued decline in volunteer, part-time, or paid “on-call” EMS providers across the state’s southern tier, further straining resources.
Making the call: To run or not to run Sometimes, it’s a clear call. Sometimes, sending an ambulance on an apparently “routine” run can turn out to be a judgment call. Filtering “inappropriate requests” for ambulance service can be dicey business. Southern Illinois University (SIU) graduate assistant Lindsay Knaus, who has studied rural health care access issues, told FarmWeek non-emergency use of emergency services often is a low-income response to limited transportation resources. But Knaus also recognizes the dilemma facing emergency service agencies (EMS), especially “when you have Medicare and Medicaid in Illinois not clearly defining what misuse or inappropriate use of ambulance service is.” The patient faces no consequence even for consciously improper use of ambulance services, but the EMS provider could be subject to penalties if Medicaid officials eventually audit past reimbursements, she said. “Wisconsin has actively worked with Medicaid and
Medicare to define misuse of ambulance services,” Knaus related. “When people are billing, they know what constitutes an emergency. I think the biggest need right now is defining misuse of services — when you can call and when you cannot. And we have to educate people about what ambulance services are for and about alternatives.” In Jackson County, one caller repeatedly requested ambulance service for a ride to work. “Lifting assistance” for elderly or disabled residents is “pretty common,” said Fulton County Emergency Medical Association executive director and emergency medical technician (EMT) Andrew Thornton. In some counties, ambulance services essentially cannot reject non-emergency calls, SIU Rural Medical Transportation Network representative Jenna Jamieson said. Thornton argues no Illinois ambulance service likely would refuse a call, but once on the scene, a paramedic can refuse to transport a victim to the hospital. That isn’t likely
to happen, he said. “What would you rather do: run this person to the hospital who doesn’t need to go and eat their ambulance bill, or get sued for thousands of dollars?” he posed. In Fulton County, emergency agencies have developed a 9-1-1 protocol for determining when an ambulance is dispatched. A series of operator questions can clarify whether a caller’s toothache is a noncritical issue or a symptom of a serious condition — as it was in a case fielded by Thornton where dental discomfort preceded a heart attack. “A car accident could require a response from police, fire, and EMS if a hazardous material or a fire and the need for (victim) extrication is involved,” he told FarmWeek. Beyond public transit options, registered nurses rather than ambulances can respond to some calls from repeat ambulance callers, Jamieson added. — Martin Ross
FarmWeek Page 4 Monday, April 30, 2012
production
Plan offers regional opportunities, working lands focus BY MARTIN ROSS FarmWeek
Senate-proposed conservation provisions reportedly could strengthen a federal focus on working farmlands, foster new watershed partnerships, and, according to one Washington observer, help keep federal regulators at bay. American Farm Bureau Federation policy analyst Mary Kay Thatcher hailed the Senate Ag Committee for an “outstanding job” of finding lower-impact budget savings and building new efficiencies into the farm bill conservation title. The plan would consolidate 23 current conservation programs into 13
key stewardship programs. Thatcher admitted “we knew we had to take some cuts” — $6 billion in conservation funding cuts over a 10-year period under the Senate Ag plan. But she argued a projected $6 billion in largely program administrative savings is preferable to tapping “money that goes into a farmer’s pocket” — i.e., conservation payments and assistance. “The vast majority of the cuts are coming by reducing the size of the Conservation Reserve Program (CRP) from 32 million down to 25 million acres over the next five years,” Thatcher said in an RFD
Radio-FarmWeek interview. “Given the way they’ve drafted this bill, I suspect the land that will come out will largely be land that probably never should have been in the CRP anyway. “I think farmers have been really adamant over the past few years that if we have to take money out of conservation, it’s better if we take it out of the (land) retirement-type programs than out of the working lands programs.” Thatcher hailed the ag committee’s commitment to maintaining a strong focus on livestock water quality assistance under the Environmental Qual-
ity Incentives Program (EQIP). In the last farm bill, lawmakers directed that 60 percent of EQIP funding go to the livestock sector, with another 5 percent dedicated to wildlife habitat incentives. New in the Senate proposal is a proposed Regional Conservation Partnership Program (RCPP) that would encourage “priority partnerships” between farmers and other stakeholders on a local or regional basis. The RCPP would offer project funding on a competitive merit basis. A similar Cooperative Conservation Partnership Initiative (CCPI) has been tapped to address nitrogen losses in the
Upper Salt Fork Watershed in Champaign County. The CCPI project, involving producers and conservationists, has increased adoption of techniques to retain nitrogen fertilizer on farmland. The RCPP potentially could enable states and local groups to seek a federal boost for locally coordinated projects, possibly on a watershed level. Nitrogen runoff issues in the Mississippi River Basin have spurred concerns about possible Midwest nutrient management mandates similar to those the U.S. Environmental Protection Agency has set for the eastern Chesapeake Bay.
Pork producers hail risk study measure Groups attack GMO herbicide-tolerant corn A campaign against what activist groups have dubbed “Agent Orange Corn” is part of a general sustained attack on ag biotechnology and ignores current interagency regulatory safeguards, according to a Farm Bureau biotech specialist. Consumer and other groups have urged U.S. Ag Secretary Tom Vilsack to shut down Dow AgroSciences’ application for regulatory approval of “Enlist” — a prospective GMO corn product with built-in 2,4-D herbicide tolerance. Dow seeks to market Enlist corn, soybean, and cotton varieties that possess dual tolerance to 2,4-D and glyphosate herbicides along with a new herbicide aimed at fighting weeds that have become resistant to standard glyphosate herbicides. Opponents argue the products together would lead to a major increase in the volume of chemicals sprayed in the U.S., damaging nearby crops, spurring increased weed resistance, and possibly contributing to health issues. An article on the Huffington Post website last week headlined concerns about “Agent Orange Corn,” attempting to tie ag 2,4-D use to use of jungle defoliants that contained the compound in the Vietnam conflict. The U.S. Environmental Protection Agency (EPA) recently announced it was not pursuing further review of 2,4-D’s herbicide registration. Dow officials argued its new products are safe and have been extensively tested. “This is going to be a solution that we are looking forward to bringing to farmers,” said Joe Vertin, Dow’s global business leader for Enlist. American Farm Bureau Federation biotech specialist Kevin Richards noted the Enlist trait “has been in the (development) pipeline for quite some time.” Dow has worked “in close coordination and communication with a whole host of stakeholders, both on the biotech side and on the herbicide side,” Richards told FarmWeek. He said he sees no indication Dow is considering any “wholesale replacement” of glyphosate/Roundup-resistant varieties with Enlist-trait corn. Instead, Enlist likely will serve as one more trait in “stacked” corn varieties developed to resist a number of crop pressures, he said. “Farmers then would have several different modes of action to knock down weeds and to deal with resistance,” Richards maintained. According to Richards, 2,4-D remains a “relatively more limited-use herbicide.” EPA exhaustively reviewed “all the available science and evidence” in determining not to pursue further 2,4-D investigation, and its decision “reinforces that we have good scientists doing good work in the regulatory agencies,” he said. “The plant risk and environmental assessments that came out of (USDA) specific to the biotech trait reinforces that we have good, robust, thorough reviews going on within the regulatory framework,” Richards said. — Martin Ross
As renewed BSE concerns reminded U.S. livestock farmers of the potential costs of animal disease (see page 6), the U.S. Senate Ag Committee approved 2012 farm bill provisions that would look at protecting hog producers in the event of foreign market disruptions. Noting the U.S. pork industry’s expanding global footprint, Sen. Amy Klobuchar (DMinn.) won inclusion of an amendment that seeks USDA study of the feasibility of and possible structure of swine catastrophic risk management insurance to cover input costs lost because of an animal disease or event that slows or halts U.S. pork exports. The amendment was cosponsored by Sen. Charles Grassley (R-Iowa). In 2011, the U.S. pork industry exported more than $6 billion in product, accounting for roughly 27 percent of its total production and reportedly supporting more than 50,000 jobs. Foreign sales had dropped significantly in 2009 after 16 years of record exports because of an outbreak of the H1N1 flu virus in humans and associated publicity regarding the so-called “swine flu.” “We need a program that will protect pro-
ducers from another H1N1 situation,” National Pork Producers Council President R.C. Hunt said. “The increased presence of disease, along with increasing international travel and trade that move diseases around the world, have created an unprecedented risk to the U.S. pork industry. “Producers need risk-management tools that can protect them should our export markets close. We applaud Senators Klobuchar and Grassley for supporting our industry and helping to ensure our jobs are not jeopardized.” USDA already has a pilot insurance program for hog producers called Livestock Gross Margin (LGM), but it has a $3 million limit on spending that restricts the number of pigs any one farmer can insure. Further, the program currently is available to producers only for a sixmonth period. At the same time, the National Cattlemen’s Beef Association (NCBA) seeks new “private enterprise alternatives” for protecting against its own production-market risks. However, “at this point, we’re leaving it to the pork folks” to pursue farm bill risk management options, NCBA Washington spokesman Mike Deering told FarmWeek. — Martin Ross
Senate Continued from page 1 eliminating federal crop insurance premium subsidies in favor of a “single, simple, and free” policy covering 70 percent of average crop yield and compensating growers at 100 percent of a crop’s market price. The report charged premium subsidies offer growers “irresistible incentives to buy more insurance, and more expensive types of insurance, than they would buy if they had to spend their own money.” U of I economist Gary Schnitkey argues premium subsidization, in fact, was designed to encourage purchase of higher yield or revenue “buy up” coverages that provide greater production and/or price protection. Schnitkey fears the EWG plan would set back progress in crop insurance participation and hobble risk management effectiveness, particularly in the Midwest.
“At the 70 percent insurance level, there are next to no (loss) payments in Illinois,” Schnitkey told FarmWeek. “You’d be taking a big program and making it pretty much ineffective for any sort of Midwest crop. “We find that, basically, if you had a 70 percent yield insurance policy, the expected (loss) payments on that policy would be somewhere from 60 cents to somewhere closer to $4.80 in Southern Illinois. It’s a very, very low coverage. You’d be dramatically changing that program — you’re cutting it dramatically in size and scope.” Thatcher noted the Senate plan would install a new “threelegged stool” of farmer protections — continued commodity marketing loans, a stronger crop insurance program, and a new Agriculture Risk Coverage (ARC) program that would assist eligible producers who lose 11 to 21 percent of their
last five-years’ average revenue. The program would create a new eligibility base based on a grower’s 2009-2012 average total planted acres. Participants would not be tied to a specific commodity. “I could have an average of 400 wheat acres and 600 corn acres over the last four years, and, therefore, my total eligible acres would be 1,000,” Thatcher explained. “I could plant whatever I wanted on that 1,000 acres — corn, beans, wheat, rice, you name it. I could plant more than that 1,000 acres, but I would not be eligible for support under the ARC shallow loss program.” Cotton producers could enroll in a separate program — the Stacked Income Protection Plan. That proposal could generate some contentious debate: Thatcher noted continued Brazilian concerns about U.S. cotton-specific supports.
Page 5 Monday, April 30, 2012 FarmWeek
production
Majority of state’s corn crop in the ground BY DANIEL GRANT FarmWeek
A majority of the Illinois corn crop is in the ground as planting progress continued at a rapid pace last week. Farmers statewide had planted 59 percent of the corn crop as of the first of last week, compared to just 10 percent at the same time last year and the five-year average of 17 percent. That figure no doubt will be higher when the new estimate comes out today (Monday). Larry Hummel, a FarmWeek Cropwatcher from Lee County in Northern Illinois, late last week prepared to switch from planting corn to soybeans. “We’ve got about 60 percent of our corn planted,” Hummel said on Thursday. “We haven’t planted any soybeans yet, but we’ll probably start in another day or so.” Full reports from Cropwatchers will return to
FarmWeek next week in the May 7 issue. Hummel noted some farmers who held off planting in previous weeks due to either cold or dry soils opened up the throttle last week. Research at the University of Illinois suggests farmers can plant soybeans now without much concern about losing yields. In fact, some of the top soybean yields the past two years were from fields planted in mid-April. “We now have evidence that waiting until some date in May to plant soybeans may not be necessary or even helpful to yields,” said Emerson Nafziger, U of I crop systems specialist. And, on the flipside, soybean yields can take a hit if farmers wait too long to plant. U of I research showed a yield loss of about three to four tenths of a bushel for each day soybeans are not planted after mid- to late May.
Farmers should, however, hold off planting soybeans until the soil warms up in fields with a history of sudden death syndrome (SDS). SDS does the most damage to susceptible varieties that are planted into cool soils, according to Carl Bradley, U of I plant pathologist. “In fields where SDS has been a historical problem, it is best to plant soybean varieties that have a high level of resistance to SDS,” Bradley said. “In addition, consider planting these fields with a history of SDS last.” Illinois farmers as of the first of last week had planted 5 percent of the soybean crop compared to 1 percent a year ago and the five-year average of 1 percent. Oat planting last week was 97 percent complete compared to the average of 65 percent. Hummel said the majority of the corn crop in his area
FSA reminds producers about CRP compliance Farmers receiving a share of Conservation Reserve Program (CRP) annual payments need to remember there are several compliance and maintenance actions that they must follow to comply with their CRP contracts. What follows is a brief list; however, in all cases, contact your FSA county office to ensure any planned actions are within the allowable action of your contract and approved conservation plan of operation (CPO). Participants must: • Comply with the terms of the approved conservation plan of operation for the CRP acreage. If you don’t have a copy of your plan, you may obtain it from the county office where the records are kept. • Not harvest, sell, or otherwise make commercial use of trees, forage, or other cover on the CRP acres, including the shaping of trees for future use as Christmas trees. However, and subject to prior county committee approval, CRP participants may make commercial use of forest refuse resulting from customary forestry activities included in the CPO, such as pruning, thinning, or timber stand improvement. • Not plant an unauthorized crop, such as an agricultural commodity, on CRP acreage; • Not disturb the acreage during the primary nesting and brood-rearing season for wildlife. In Illinois, this is April 15 through Aug. 1. This also is the period when mowing is not allowed unless prior approval is granted for spot control of certain noxious weeds. • Not hay or graze CRP acreage without prior FSA approval from the servicing county office. Also, haying or grazing will be author-
ized only from Aug. 2 through Sept. 30, but is generally only authorized on the same acreage once in three years, has a 25 percent payment reduction assessed, and is not allowed on all CRP practices, such as waterways and filter strips may not be hayed or grazed. • Perform periodic management activities as described in the conservation plan of operation. As these activities are planned at the time of contract enrollment for future implementation, conditions outside the participants’ control, such as adverse weather conditions or favorable weather conditions, could cause these activities to be needed sooner (adverse weather) or not needed at all (favorable weather). For plan changes, contact FSA or the servicing Natural Resources Conservation Service office. • Notify FSA immediately should control or shares of CRP contracts change. This could be the result of a land sale, death of participant, or change in ownership structure, such as from an individual to a trust. Some activities are allowed on CRP acreage as long as they don’t otherwise defeat the purposes of the CRP contract. An example of a permissible activity would be hunting if it does not disturb the CRP ground. An example of an activity not permitted would be operating an ATV park or other recreational activity. Another common compliance problem would be constructing a house on CRP acreage. This would be a contract violation that would result in contract termination and require refunds of payments received plus interest and liquidated damage assessments. If you plan to build on or otherwise alter acreage that is enrolled in CRP, contact your FSA office to remove that portion of the land and repay money on only that part prior to breaking ground on the CRP acreage. For more advice on what is and is not permitted on CRP acres, contact your local FSA office.
was growing out of any lingering frost injuries. “There’s a field near me that was planted in March that has been frosted at least three times,” he added. “It’s still fighting and still is green. I think everything will be fine.”
Regionally, corn planting as of the first of last week was 80 percent complete in the west-southwest portion of the state compared to 62 percent Central Illinois and 30 percent in the northwest.
Dan England, rural Maquon (Knox County), looks over turnips that he planted with annual ryegrass as a cover crop before planting this field to corn. The field, which was planted to wheat last year, is adjacent to a field where England had just finished planting corn. This was the first year England planted turnips as a cover crop. The crop was planted after a manure application (England has hogs). “Turnips are a deep-rooting crop that helps sequester nutrients,” he said. He plans to do another cover crop combination this year, with annual ryegrass, tillage radish, and clover. He finished planting his corn on Tuesday and started planting his 880 acres of soybeans on Friday. (Photo by Ken Kashian)
U of I Plant Clinic open for business The University of Illinois Plant Clinic has resumed regular business hours, 8 a.m. to noon and 1 to 4:30 p.m. week days. Samples already have started arriving this spring. Unusually warm weather has prompted early field work, growth, and observations of pest issues, said Suzanne Bissonnette, plant diagnostic clinic and integrated pest management coordinator. Clinic services include plant and insect identification, diagnosis of disease, insect, weed and chemical injury (chemical injury on field crops only), nematode assays, and help with nutrient-related problems, as well as recommendations. Many samples may be diagnosed within a day or two, although if culturing is necessary, a final reading may not be available for up to two weeks. Nematode processing also requires about one to two weeks, depending on the procedure. Final diagnoses and invoices are sent via U.S. mail and e-mail. For additional details on sampling, sample forms, fees, and services offered, refer to the clinic website, {http://web.extension.illinois.edu/plantclinic/}. For questions about what, where, or how to sample, call 217-333-0519 during business hours. Whenever submitting a sample, provide as much information as possible on the pattern of injury, the pattern on individual affected plants, and details on how symptoms have changed over time. Fees vary depending on the procedure. General diagnosis including culturing costs $15; ELISA and immunostrip testing, $25; nematode analysis for SCN (soybean cyst nematode) or PWN (pine wood nematode), $20; specialty nematode testing, such as in corn, $40. Payment must accompany samples to initiate diagnosis; call if you are uncertain which test is needed. Checks should be made payable to the U of I or to the Plant Clinic. Send samples to: U of I Plant Clinic, 1102 S. Goodwin, S417 Turner Hall, Urbana, Ill., 61801.
FarmWeek Page 6 Monday, April 30, 2012
livestock
Burger King set to go cage and stall free by 2017 BY DANIEL GRANT FarmWeek
Burger King last week announced that in five years it will purchase eggs and pork sourced only from farmers who do not use battery cages for egg-laying hens and gestation stalls for pregnant sows. The company’s new policy will take effect in 2017 — the same year Smithfield Farms and Hormel plan to have stalls completely phased out of pork production at their operations. McDonald’s and Wendy’s
previously asked their pork suppliers to outline plans to eliminate gestation stalls, but a timetable was not set in either case. The National Pork Producers Council (NPPC) noted it respects the right of companies to make business decisions that are in their best interests, but expressed concern last week about the latest plan in the fast-food industry to phase out gestation stalls. NPPC noted the elimination of gestation stalls will increase production costs,
raise consumer prices, force some pork producers out of business, and lead to more consolidation in the industry — all with no demonstrable health benefits to sows. NPPC supports the position taken by the American Veterinary Medical Association and the American Association of Swine Veterinarians, which recognize gestation stalls are as appropriate as group housing systems for providing for the wellbeing of sows during pregnancy. Gene Gregory, president
of the United Egg Producers, said egg producers are willing to make production changes if consumers are willing to pay higher prices for their eggs. One question that remains about a move away from gestation stalls and layer cages is where pork and eggs will be sourced as most large hog and egg-layer operations use stalls and cages, respectively. BK currently sources only 9 percent of its eggs and 20 percent of its pork from operations that don’t
use cages or stalls. The Humane Society of the United States (HSUS) last week welcomed BK’s decision. In fact, NPPC believes HSUS spearheaded the move. “It seems that Burger King was bullied by an animal rights group whose ultimate goal is the elimination of food animal production,” NPPC said. HSUS owns stock in 52 companies so it can attend shareholder meetings and submit proposals for animal welfare policy, the Associated Press reported.
Beef supply safe
Fourth case of BSE confirmed in U.S.
USDA joined officials from all quarters last week in assuring consumers that U.S. beef and dairy products are safe after a dairy cow in California tested positive for bovine spongiform encephalopathy (BSE). Last week’s finding was the first case of BSE, otherwise known as “mad cow disease,”
in the U.S. since March 2006 and the fourth overall since BSE was discovered in a cow in Washington state in December 2003. “USDA remains confident in the health of U.S. cattle,” said Ag Secretary Tom Vilsack. “The systems and safeguards in place to protect animal and human health worked
as planned to identify this case quickly and will ensure that it presents no risk to the food supply or to human health.” The dairy animal was discovered at a rendering facility and its meat never was presented for human consumption (milk does not transmit BSE). The carcass as of last week was being held at a Cali-
fornia rendering facility and will be destroyed, according to USDA. “The bottom line remains the same — all U.S. beef is safe,” said Tom Talbot, chairman of the National Cattlemen’s Beef Association’s Cattle Health and Well-being Committee. “We commend USDA and the animal health experts for effectively identifying and eliminating the
there were only 29 cases of BSE worldwide. Last week’s case of BSE, and three out of the four confirmed cases of BSE in the U.S., was atypical. “What that means is it’s non-contagious and occurred spontaneously,” said Eric Johnson, spokesperson with the Illinois Beef Association. “It (the BSE infection) happened naturally and not
‘Evidence shows our systems and safeguards to prevent BSE are working.’ — John Clifford USDA chief veterinary officer
potential risks associated with BSE.” USDA in 1997 banned the use of specified risk material (parts of the animal most likely to contain BSE if present in a cow) in the food supply. It also banned meat from all non-ambulatory animals, “downer cattle,” from entering the human food chain. Meanwhile, the Food and Drug Administration banned the use of ruminant material in cattle feed to prevent the spread of the disease in herds. “Evidence shows our systems and safeguards to prevent BSE are working,” said John Clifford, USDA chief veterinary officer. The peak of BSE cases worldwide occurred in 1992 when there were 37,311 cases across the globe. In 2011,
from feed intake.” The U.S. beef market remained steady, a stark contrast to when BSE first was discovered in the U.S. in 2003. Dozens of countries after the 2003 incident banned imports of U.S. beef, cattle prices plunged, and the U.S. from 2003 to 2011 lost an estimated $3 billion in beef export sales. “Our international trading partners are, by all indications, adhering to sound science with regard to this finding of an atypical case of BSE,” said Philip Seng, president and CEO of the U.S. Meat Export Federation. Key export destinations such as Mexico, South Korea, Japan, Canada, and the European Union as of Thursday all planned to continue to import U.S. beef. — Daniel Grant
Page 7 Monday, April 30, 2012 FarmWeek
Education
Ag education initiative on state’s fast track BY KAY SHIPMAN FarmWeek
Illinois students will learn more about careers in agriculture, food, and natural resources via a new state education initiative. Ag ed supporters learned recently the Illinois State Board of Education will fund an agricultural proposal. A total of $430,000 will be received over three years, said
Jay Runner, state coordinator for the Facilitating Coordination in Agricultural Education. “We really look to ag ed to help us be a leader of learning exchanges,” said Mike Baker with the Department of Commerce and Economic Opportunity. A learning exchange is comprised of curriculum, career exploration, workbased learning, student organ-
izations, and internships or educational job experiences. In February, Gov. Pat Quinn launched the Illinois Pathways initiative to prepare students for college and careers. Agriculture was one of nine key career fields in the state, and an ag ed team submitted a proposal for funding. Runner outlined some of
Supervisor training needed for some farmers who employ CDL drivers Recently, several questions have surfaced about a longstanding federal requirement for supervisory training regarding drug and alcohol
screening, according to Kevin Rund, Illinois Farm Bureau senior director of local government. The Federal Motor Carrier Safety Administration (FMCSA) has published guidance on that requirement.
Drug screening is mandated for any driver who is required to have a commercial driver’s license (CDL). First, a farmer needs to figure out whether a CDL is required and then other requirements will be determined from that, Rund advised. If an owner-operator has employees in addition to himself, and any — including the employer — are required to have a CDL, then the employer also must provide someone to supervise a drug and alcohol screening program, Rund noted. All such drivers — including the owner-operator — are subject to that supervision. The supervisor is required to be trained or the employer could face fines for not complying with federal regulations, Rund said. However, if the owner-
Illinois Forage Expo set for July 10 The 2012 Illinois Forage Expo will be from 9 a.m. to 3 p.m. July 10 in Pittsfield in Pike County. It will be hosted by Owen Brown, GFC Bale Band-It at 34273 210th Ave., Pittsfield. The site can be reached by going west and then south of Pittsfield on Route 54 about 5 miles, then east 1 mile on 1100 N Road. The Forage Expo will include field demonstrations of forage harvesting equipment and commercial displays of forage-related products and equipment. Educational sessions on forage management also will be presented. The Forage Expo is cosponsored by the Illinois Forage and Grassland Council (IFGC), University of Illinois Extension, and the Natural Resources Conservation Service. A quality hay and haylage
contest will be offered to far mers for 2012 har vested bales and haylage. Contest entries must be delivered on site between 8:30 to 10 a.m. There is no entry fee and NIRS analysis will be provided free of charge. Bales weighing more than 100 pounds will need an official scale weigh ticket. Four hay classes and one haylage class will be offered and class winners will receive a certificate. For infor mation about the contest, contact Ron Atherton, IFGC board member, at 815-622-2734 or e-mail him at ron.atherton@agriking.com. Additional infor mation about the expo is available at {www.illinoisforage.org}.
operator is the sole employee, then the requirement for supervisor training would be waived. Remember that drug and alcohol screening is mandated only for drivers required to have a CDL, Rund said. More information is available online at {www.ilfb.org} in the current issues/transportation and infrastructure section under the policy and issue tab. — Kay Shipman
the team’s plans during a recent ag education symposium in Bloomington. Career information is being compiled for 48 agrelated careers identified as core positions within the agrelated industry and/or those that lack enough qualified individuals. Extensive marketing materials, such as posters and electronic information, will be created for each of the 48 careers, and the materials will be distributed among county literacy coordinators and others, Runner said. An additional 40 ag-related careers were ranked based on industry needs. Career profile information will be developed for those if funding is available, Runner added. The team is developing a video about the core agrelated careers and exploring the creation an ag career application for smartphones. Students who download
the “app” would be able to learn about the careers and do career-related activities. The ag initiative also must fulfill nine requirements,
‘We really look to ag ed to help us be a leader of learning exchanges.’ — Mike Baker Illinois Department of Commerce and Economic Opportunity
such as electronic learning resources, student organizations, work-based learning, career awareness, and realworld challenge. “We’re trying to put together plans to address the nine core” requirements, Runner told ag education supporters.
FarmWeek Page 8 Monday, April 30, 2012
FROM THE COUNTIES
Farm-city event celebrates agriculture, centennial BY RYAN KLASSY
The seventh annual Toucha-Tractor at the Kane County Farm Bureau (KCBF) attracted a steady crowd to help
highlight the Farm Bureau’s centennial celebration. As a special event for the celebration, professional carver Michael Bihlmaier of
Marengo turned the base of the trunk of a 120-year-old ash tree, taken down due to disease, into a towering ear of corn on the corner of the
AG-CITED TO LEARN ABOUT FARMING
Bruce Thompson, a Cass-Morgan Farm Bureau board member from Arcadia, answers questions posed by fourth graders from South Jacksonville Elementary School during their visit last week to Illinois Farm Bureau Director Dale Hadden’s farm. For 17 years, the Hadden family has hosted farm visits by fourth grade classes that participate in the Cass-Morgan FB’s “Ag-Cited about Agriculture” program. This year, 15 schools, including 24 fourth grade classes, participated in the program that extends throughout the school year. (Photo by Ken Kashian)
KCFB property. Bihlmaier used half a dozen chainsaws of varying sizes to chip away at the carving over the course of the three-day event, creating a tribute to Illinois’ No. 1 commodity crop. What resulted was an 8foot-tall ear of corn, complete with curling husks that cradle more than 350 individually carved kernels of corn. At the base is the Kane County Farm Bureau’s 100th anniversary logo. “We’re really impressed with the job Mike did,” said Public Relations Chairman Beth Engel of Hampshire. “The detail is so impressive. “It should catch the attention of drivers on Randall Road and give them a reason to stop and see what we’re doing to promote a bright future for agriculture here in Kane County.” KCFB also kicked of the Centennial Grove tribute program and visitors were able to get a first-hand look at the trees available for purchase to dedicate to individuals or events. Another first-time attraction was a 1913 Port Huron steam engine brought in by KCFB member Tom Runty.
It was a huge hit with kids and adults. The steam engine, which Runty bought in 1999 and spent five years restoring, is almost exactly the same age as KCFB, which has a date of Dec. 31, 1912, on its charter. “Because we are celebrating our 100th year, we wanted to make this Touch-a-Tractor one to remember,” said Director and Public Relations Committee member Bill Collins. The event featured 17 antique tractors, modern farm equipment, farm animals and many agricultural activities for children. The weekend wrapped up with the announcement of 21 college-bound recipients of nearly $22,000 in KCFB Foundation scholarships, followed by the drawing of the winners in the not-for-profit’s annual Winner’s Choice Tractor Raffle fundraiser. It was estimated 1,500 people attended the three-day event. Ryan Klassy is KCFB’s information director. He can be reached at 630-584-8660.
Kane County Farm Bureau (KCFB) Information Director Ryan Klassy points out details in a corn ear carving to KCFB members Erwin Panzer and Bernice Maness of Maple Park. The sculpture tops out at 11 feet tall and sports a KCFB 100th anniversary logo designed by KCFB member Alysa Radtke. The carving is the handiwork of professional chainsaw carver Michael Bihlmaier of Marengo (see inset), who carved more than 350 kernels of corn into the trunk of a 120-year-old ash that needed to be taken down due to disease. (Photos courtesy KCFB)
Page 9 Monday, April 30, 2012 FarmWeek
from the counties
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HAMPAIGN — Farm Bureau will sponsor a landowner rights meeting at 5:30 p.m. Wednesday, May 9, at the Farm Bureau office. Information will be provided on coal, gas, oil, and wind energy leases. An Illinois Farm Bureau legal team will discuss landowner rights, contracts and leases, and guidelines to follow if approached by a mineral company representative. Call the Farm Bureau office at 217352-5235 for more information. • The Champaign County Farm Bureau Foundation will organize the Countryside 10K and two-mile walk Saturday, June 2, beginning at Witt Park, Sidney. Cost is determined if participating in the 10K run or two-mile walk. Online registration is available at {ccfbfoundation.com} or forms that are available at the Farm Bureau office. Register by May 11 and receive a hat and goodie bag. Call Debby Rehn at 217-3525235 for more information. OOK — Farm Bureau will sponsor a stroke detection screening Tuesday, May 15, at the Farm Bureau office, 6438 Joliet Road, Countryside; and Wednesday, May 16, at the Country Financial office, 2435 W. Schaumburg Road, Schaumburg. Members may save up to $35 for the screenings. Call 877-732-8258 for an appointment or more information. • Farm Bureau has soil testing kits available. Soil testing prices are based on the soil sample test lab cost. Call the Farm Bureau office at 708-3543276 for a kit or more information. • For information about Cook County greenhouses, farmstands, and farmers’ markets, visit the website {www.localfarmproducts.org}. AMILTON — The Hamilton and Jefferson County Farm Bureaus will
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sponsor an informational meeting on landowner oil and gas leases at 1 p.m. Monday, May 7, at the Roland Lewis Community Building, Mt. Vernon. Laura Harmon, Illinois Farm Bureau assistant general counsel; Dave Foreman, oil and gas lease lawyer; and Kevin Reimer, geologist, will be the speakers. Call the Jefferson County Farm Bureau office at 618-242-4510 by Friday for reservations or more information. ENRY — Henry, Knox, Mercer, Stark, and Warren-Henderson County Farm Bureaus will sponsor three “Ag in a Day” teacher workshops at the following dates and places: June 11, Galesburg; June 12, Alpha; and June 13, Kewanee. Workshops will include hands-on activities, grants for classrooms, kit give-aways, and farm tours. There is no charge to attend. Deadline to register is May 15. Call the Mercer County Farm Bureau office at 309-582-5116 for reservations or more information. • Bureau and Henry County Farm Bureau Foundations will sponsor a TractorTrek Saturday and Sunday, June 23-24. Proceeds will benefit the Ag in the Classroom programs in the counties. Cost is $75, which includes lunch and refreshments. Deadline to enter is June 8. Call Dave Doty at 815-739-5983, the Bureau County Farm Bureau office at 815-875-6468, or the Henry County Farm Bureau office at 309-937-2411 for more information. EFFERSON — The Hamilton and Jefferson County Farm Bureaus will sponsor an informational meeting on landowner oil and gas leases at 1 p.m. Monday, May 7, at the Roland Lewis Community Building, Mt. Vernon. Laura Harmon, Illinois Farm Bureau assistant general counsel; Dave
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Foreman, oil and gas lease lawyer; and Kevin Reimer, geologist, will be the speakers. Call the Farm Bureau office at 618-242-4510 by Friday for reservations or more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday, May 16, at the Lion’s Club, Hillsboro. A beef and noodles dinner will be served. Cost is $8. Mike Meier, managing director from Focused Pursuit LLC and author of A Focused Pursuit in China, will be the speaker. Deadline to register is Friday, May 11. Call the Farm Bureau office at 217-532-6171 for more information. • The Prime Timers will take a bus trip Sunday, July 1, to see “Nunsense A-Men!” at Conklin’s Barn II Dinner Theatre, Goodfield. Cost is $56. Call the Farm Bureau office at 217-532-6171 by Thursday, May 31, for reservations or more information. TARK — The Prime Timer’s picnic will be from noon to 2 p.m. Wednesday, May 16, at the Farm Bureau office. A barbecue pork meal will be served. An
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update on upcoming trips will be given. Call the Farm Bureau office at 286-7481 by Monday, May 14, for reservations or more information. ERMILION — Farm Bureau will sponsor a Marketing Local Foods workshop at 7 p.m. Monday, May 7, at the Farm Bureau auditorium. Cynthia Haskins and Mary Ellen Fricke, Illinois Farm Bureau, will discuss establishing a brand identity and developing a marketing plan for food products along with websites and social media. Call the
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Farm Bureau office for more information. • Vermilion and Champaign County Farm Bureaus will sponsor a landowner rights meeting at 5:30 p.m. Wednesday, May 9, at the Champaign County Farm Bureau, 801 N. Country Fair Drive, Suite A, Champaign. An Illinois Farm Bureau legal team will discuss landowner rights, contracts and leases, and guidelines to follow if approached by a mineral company representative. Call the Farm Bureau office for more information
Antique farm show May 5 at New Salem
Horse-drawn plows and historic farming equipment and farming methods from the 19th century will be featured at an antique farm show from 10 a.m. to 4 p.m. Saturday at Lincoln’s New Salem State Historic Site near Petersburg. The event is free and open to the public. Horse-drawn plows will work fields in the village, and Central Illinois farmers who still use horses for farming will be on hand with their teams and equipment to demonstrate early plowing, planting, and other work. Fieldwork demonstrations will be held weather permitting. Historic farming equipment will be displayed near the the Blacksmith Shop and allow visitors to learn about farming technology from Abraham Lincoln’s time to the early 1900s. The Vintage Ag Association of Menard County will have an antique tractor display in the Visitor Center parking lot.
FarmWeek Page 10 Monday, April 30, 2012
prOFiTABiliTy
Many ‘big’ variables in 2012/13 fertilizer outlook BY JOE DILLIER
Fertilizer markets have been extremely volatile recently, more so than any other commodity market. The wholesale price of urea, the most volatile, dropped 25 percent from November to December, then doubled from the December Joe Dillier level by late March. The wholesale price of DAP fell from August to December by more than 30 percent, and since then has
jumped 15-20 percent. What drove much of this volatility was fear: Dealers and wholesalers were worried to death last fall that we were possibly looking at a repeat of the price implosion of 2008/09, especially with the Greek/Europe question. Buyers stepped back from the market and prices fell. Then, because more supply ultimately was needed, prices rose rapidly. The volatility in fertilizer is attributable to the nature of the market — seasonal usage on the demand side vs. continuous production on the supply side. And a very large factor is
that fertilizer demand is very inelastic — it takes a very large change in price to affect the quantity of demand. It is evident that the dramatic improvement in crop economics in recent times has made the demand for fertilizers that much more inelastic and is driving more price craziness. Volatility looks to be a market staple in the new year, too. A big “outlook factor” is new production capacity coming on stream. Cheap natural gas (not only in the U.S.) is a propellant in nitrogen; in phosphate and potash, manufactures are bringing on new production to
capture margins that are much larger than a few years back. This has the potential to send prices lower. Another factor is China, which is a big exporter of nitrogen and phosphate and is expected to have substantial new supply in 2012/13. But with changing currency and energy prices in China, how much old production capacity gets shut down is a big question. Foreign policy developments are another consideration, as Iran, Saudi Arabia, and other Persian Gulf states are big nitrogen producers and are getting bigger. Any Gulf disruption
would have a serious, immediate impact on nitrogen markets. Then there is the question of where grain markets go this summer. Simple, huh? The strategy to deal with this volatility surely has to be to back-to-back sell grain and buy fertilizer at the same time to as much extent as possible. While not always possible, selling grain/buying fertilizer should be a “plan A” strategy given the dramatic volatility present today. Joe Dillier is GROWMARK’s director of plant food. His e-mail address is jdillier@growmark.com.
Hay production could grow; prices expected to moderate BY DANIEL GRANT FarmWeek
Grass and alfalfa growth that got off to a quick start earlier this spring has slowed in recent weeks due to cool and dry conditions across much of the state. The Jeff Beasley statewide average temperature the third week of this month was just
53.2 degrees, 1.5 degrees below normal. Meanwhile, more than one quarter of topsoil moisture (28 percent) and 36 percent of subsoil moisture in the state
FarmWeekNow.com Check out the latest Illinois hay market prices at F a r m W e e k N o w. c o m .
last week was rated short or very short. However, farmers still expect a good hay crop and,
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 $32.50-46.00 $39.64 $65.67-65.95 $65.81 no longer reported by USDA This Week Last Week 126,725 101,105 *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 $79.32 $79.23 $58.70 $58.63
Change 0.09 0.07
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 119.52 122.98 -3.46 119.30 122.38 -3.08
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 148.85 150.18 1.33
Lamb prices n/a
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 04-19-12 12.0 24.4 29.4 04-12-12 18.9 26.2 43.4 Last year 11.2 28.9 37.5 Season total 1072.9 895.5 1053.1 Previous season total 1350.5 1093.7 1122.7 USDA projected total 1275 1000 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
combined with a big harvest last year in the state, hay prices should moderate this year, according to Jeff Beasley, president of the Illinois Beef Association and a cattle producer from Creal Springs. “It was extremely hot in March (with temperatures in the 80s) and at first the grass was really jumping out,” Beasley told FarmWeek. “All of a sudden it dried up and cooled off, and it seemed the grass quit growing.” Beasley’s Williamson County farm received an inch of rain about two weeks ago, which helped the situation. “I’m thinking the hay crop at this point is average,” he said. “And there was a big hay crop last year that helped prices moderate somewhat. So, right now, we’re probably looking at average hay prices.” Illinois hay prices as of the first of week this month were steady to $20 per ton lower, USDA reported. Prices ranged from $260 to $280 per ton for premium alfalfa in Northern Illinois to $120 to $160 for fair alfalfa in Southern Illinois. Good grass hay across the state averaged between $160 and $180 per ton. The situation in Illinois the past year was much better compared to drought-induced hay shortages experienced across much of the southern U.S., particularly Texas. Many producers in the South were forced to liquidate herds or drive hundreds of miles to find feed for their animals, according to the CME Group Daily Livestock Report. The situation continued to affect the market, and hay prices nationwide earlier this month reached all-time highs for this time of year (see graphic). The feed outlook this year
is much improved as hay acres are projected to climb by nearly 1 million to 57.3 million. Moisture conditions in the Southern Plains are much improved compared to last year. Corn prices also are expected to average below year-ago levels.
“I think with feed prices kind of moderating, we’re not in too bad of shape,” Beasley said. Farmers can buy or sell hay online in the state at the Illinois Department of Agriculture’s hay and straw directory at {www.agr.state .il.us/markets/hay}.
DATEBOOK April 30 Rural listening session with Lt. Gov. Sheila Simon, 1 to 3 p.m., FHM Burchard Hills Family Healthcare Center, Freeport. May 10 Rural listening session with Lt. Gov. Sheila Simon, 10 a.m. to noon, the Ray and Joan Kroc Corps Community Center, Quincy. May 12 IAA Foundation 5K Grow and Go, Illinois Farm Bureau headquarters, Bloomington. June 14 IAA Foundation Golf Outing, Pontiac Elks and Wolf Creek Golf Club, Pontiac. July 19 2012 Illinois Forage Expo, 9 a.m. to 3 p.m., Pittsfield.
Page 11 Monday, April 30, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Oilseed supplies have been tighter As much as we look at the total oilseed sector, it’s still difficult to come up with a real tight scenario unless one assumes poor crops in the U.S. this summer and in South America next year. Yet the trade seems to be working from the premise that U.S. and new-crop South American crops may not be large enough to meet expected demand over the coming year. At the end of this marketing year, the stocks-to-use ratio for oilseeds, adjusted to counter the six-month differential with most South American supplies, is not as tight as it was last summer, nor as tight as it was in the 2007/2008 marketing year. The trade finds it easy to believe U.S. farmers may not plant enough soybeans this year because of the March intentions number. But as we have pointed out, there are a number of historical precedents in which soybean plantings were significantly higher in the June report than they were in the March report. A month ago, we started to hear talk of expanded Brazilian plantings being planned for next year. And since then, soy-
bean prices in the real have jumped to new record highs. We have also heard 25 percent of the new crop has been priced, with some talk that the portion may even be higher. That tends to help ensure expanded plantings next year. This past week, there was talk in Argentina that producers are planning to significantly scale back winter wheat plantings because of the impact government policies have on wheat prices. That could push more acreage into “single crop” soybeans next year. High prices and aggressive early pricing tend to suggest a high level of input usage for the next crop as well. And after two years of yield difficulties in Argentina, and this year’s difficulties in Brazil and Paraguay, yield potential should be better this coming year. It’s easy to build a case for production in Brazil, Argentina, and Paraguay rebounding to 135 million metric tons (mmt) from this year’s 113 mmt. That’s a potential 5-billion-bushel crop next spring. In the end, all we need to produce in the U.S. this summer is a crop large enough to meet demand to get the world to the next South American crop. And if there is a good crop there, current prices are likely too high. If demand were to disappoint, it would be an added drag on the market.
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ü2011 crop: Market action hints the 20-week low may still lie ahead. Given current prices, and the approaching low, we’d put off making any catch-up sales until after that low is hit. Even if prices drop lower in the short term, they should be able to reach these levels again. ü2012 crop: Use rallies to $5.40 on December futures to make catch-up sales. Sales were increased to 40 percent when the fail-safe was triggered three weeks ago. We prefer hedge-to-arrive contracts for making sales, but plan to tie up the basis by mid-summer. vFundamentals: Even though new business with China has been confirmed, the market response was less than enthusiastic. The bulk of the business coming from the new crop instead of the old illustrated their price sensitivity to the premium old-crop prices command. Planting progress continues at an above average pace, but if longer range weather forecasts hold up, it could be slowed to a normal pace. Cool weather has slowed early growth, but frost damage has been limited.
Soybean Strategy
ü2011 crop: The market may not have given a sign that prices are about to turn down, but given the risk/reward, sell remaining inventories unless you want to hold “gambling stocks” into summer. The first break could be brutal when it comes, with the record long position held by trading funds. ü2012 crop: Price another 10 percent now, lifting the total to 40 percent. vFundamentals: Ongoing talk about reductions in South American crops finally lifted soybean prices over last year’s highs. But the rally to $15 eroded as quickly as it occurred. With Brazilian harvest nearly complete and Argentina’s close to 50 percent, we doubt there’s much market lift from them yet to come. Chinese business remains steady, but look for their emphasis to start shifting to new crop. A slower
pace of corn planting could help shift acreage to soybeans. ûFail-safe: If November futures fall below $13.45, get the new-crop sale made.
Wheat Strategy
ü2011 crop: The wheat market could be shifting into a sideways trend, but the market remains vulnerable to further weakness with seasonal pressure and impending harvest a drag on prices. Use rallies to wrap-up old-crop sales. Use the cash market to make sales. Don’t carry unhedged inventories beyond April. ü2012 crop: Use rallies to $6.38 on Chicago July futures to make catch-up sales. Pro-
ducers selling 100 percent off the combine need to be aggressive in making sales on rallies. vFundamentals: The downside has been limited by news that sporadic cold weather concerns in the U.S. prompted the International Grains Council to reduce its world wheat production estimate for 2012-2013 by 5 million metric tons (mmt.) to 676 mmt. While Western European countries have received rain, there are pockets in Russia and Kazakhstan that have been drying out. Export demand has been steady but not overly exciting.
FarmWeek Page 12 Monday, April 30, 2012
perspectives
Market gains, improvements may foreshadow growth
Seven score and 10 years ago
Lincoln’s legacy to agriculture celebrates sesquicentennial
B
iographers and historians have written more about Abraham Lincoln than any other American president, but they never seem to pay much attention to his influence on American agriculture. If they are ever going to recognize his contributions, this would be an appropriate time. One-hundred fifty years ago, in 1862, the 37th Congress passed, and President Lincoln signed, three laws of great importance to agriculture. They were an act to establish a Department of Agriculture, the Homestead Act, and the Morrill Land-Grant STEWART TRUELSEN Act. The department did not immediately attain cabinet-level status; that came more than two decades later. It was Lincoln who referred to the Department of Agriculture as “the People’s Department.” He undoubtedly called it that because half of the nation’s people at that time were farmers. Recently, the term has been misused by some to try to subordinate the needs of farmers and ranchers. Before becoming president, Lincoln told a farm audience in Milwaukee, Wis., that farmers were neither better nor worse than other people, and added, “But farmers being the most numerous class, it follows that their interest is the largest interest.” The Homestead Act to open up the West had been a platform plank of the fledgling Republican Party. It allowed a citizen to file for 160 acres of public land. All he had to do was pay a nominal fee, improve the land and settle there for five years.
The Morrill Act gave the states federal lands to establish land-grant colleges, which formed a higher education framework for the nation and became centers of agricultural learning. After the Civil War, the act was extended to the southern states. Lincoln was raised on the frontier by parents who had limited success farming. He understood the importance of farmers obtaining knowledge to farm better. In fact, Lincoln thought farming was an ideal occupation for the “combination of labor with cultivated thought.” “Every blade of grass is a study;” he said, “and to produce two where there was but one, is both a profit and a pleasure.” Those feelings still ring true with farmers today. If Lincoln needed another reason for the federal government to promote and encourage the success of American agriculture, he could have found it in the disastrous Irish Potato Famine that began in the summer of 1845. A million Irish died from the famine and millions more emigrated, many to America and Lincoln’s home state of Illinois. The Irish famine may have impressed upon the president and other political leaders of his day the importance of having a stable, diverse food supply, and the knowledge to produce enough food for a rapidly growing nation. In any event, the laws signed 150 years ago transformed American agriculture, setting it on a course to become the envy of the rest of the world. It is only because Lincoln’s legacy is so large that we seldom recognize this part of it. Stewart Truelsen is a regular columnist for the American Farm Bureau Federation and author of Forward Farm Bureau.
The U.S. economy continues to improve — albeit at a moderate pace. Labor and housing markets are both showing some long-awaited signs of healing, although recent numbers have been lower than expectations. Retail sales also have been decent, although the growth has slowed somewhat from levels seen in 2011. These factors, coupled with hope for resolution to issues in Europe and continued accommodative global monetary policy, sparked a rally in equity prices around the world. On the back of a doubledigit gain in the fourth quarter of 2011, stocks posted their best first quarter return since 1998. DEREK VOGLER The S&P 500 Index advanced 12.59 percent while the EAFE International Index rose by 11 percent. Recently, stocks have given back some of the first quarter gains, with the S&P up about 10 percent as of mid-April. Here in the U.S., the markets were driven primarily by financial, technology, and retail stocks. Many of the worst performers during 2011 came roaring back with massive gains. The best S&P 500 performer during the quarter was Sears, surging by 108 percent after being down 55 percent last year. Bank of America was another example, registering a whopping 72 percent return after dropping by 58 percent last year. Notable tech darlings — such as Netflix, Priceline.com, Salesforce.com, and Apple — all posted gains of 48 percent or more during the quarter. Amazing moves in such a short period. Has the all-clear sounded so everyone can now jump back into the stock market? We aren’t sure of that. First of all, complacency from investors is unbelievably high. A snapshot of this complacency can be seen by looking at the VIX volatility index. Essentially, it shows that investors aren’t afraid of a significant pullback. This seems strange to us given some
of the potential dark clouds that continue to form. For example, we have rising gasoline prices that could easily stunt consumer spending; China has been showing signs of a slowdown; and the European mess still seems far from resolved. Spain and Portugal are having trouble reducing spending, which is causing interest rates on their debt to climb. The bond market appears to share our concerns with rates hovering near alltime lows. Yes, yields have increased slightly, but with the 10-year Treasury still hovering just above 2 percent, it’s tough to say that the bond market indicates everything is rosy. Even if none of these issues stops the market progress, there is good reason to believe a shortterm pullback might be in order. Rarely has the market had the type of percentage gain seen in the last six months without a correction. If we do see a pullback, we are ready to take advantage of any compelling investment opportunities that arise. While a short-term retrenchment in stocks is probably due, we modestly are optimistic that many of the gains we’ve seen this year can be held or even increased. The key could be continued economic expansion and no further significant increase in gas prices. The upcoming presidential election, along with all of corresponding political promises, also could be positive. Candidates likely will pull out the same old playbooks of promising everything to everybody. Not to disparage any politician or political party, but when was the last time you heard anyone who wanted to get elected talk about how rough things will be under his or her watch? I’m sure we’ll hear a lot of discussion about lower taxes, more jobs, business investment, etc. As long as there aren’t too many questions about how these things get done, the markets probably will react positively. Derek Vogler is vice president of wealth management for Country Financial.
“Ixnay.”