Wheat prospects look good — for now. Growers remain optimistic about high yield potential. page 3
SWAT team members will advise the IFB Board on river infrastructure funding proposals. page 5
Be careful while spraying this spring. DriftWatch.org lists locations of pesticide-sensitive crops. page 6
FAS administrator brings TPA cause to state ag leaders Monday, April 6, 2015
BY KAY SHIPMAN FarmWeek
USDA Foreign Agricultural Service (FAS) Administrator Philip Karsting found unified support among Illinois agriculture leaders for granting President Barak
Two sections Volume 43, No. 14
Obama Trade Promotion Authority (TPA). Last week, Karsting met with ag leaders and government representatives at the Sangamon County Farm Bureau building, Springfield. “We want to make sure
Philip Karsting, left, administrator of USDA’s Foreign Agricultural Service, chats with Teutopolis farmer Kevin Miller, member of the IFB Farm Production and Marketing Strength with Advisory Team, last week. Karsting discussed the importance of Trade Promotion Authority with agriculture leaders in Springfield. (Photo by Kay Shipman)
Group makes strides toward Cuba trade BY JOANIE STIERS FarmWeek
Periodicals: Time Valued
A diverse group of Illinois leaders encourages President Obama to follow through and remove Cuba from the State
everyone in farm country has an interest in agricultural exports ... the farm community, too,” Karsting said, after a closed-door meeting. Karsting noted the president highlighted his trade agenda Jan. 20 in his State of the Union Address. That includes “growing the economy ... and creating good opportunities here at home,” he added. Thoughtful, pragmatic people should negotiate trade agreements; however, other nations will step in if the United States isn’t involved, Karsting warned. “We feel Americans should sit down and have a hand in writing the rules,” he added. Teutopolis farmer Kevin Miller described ag leaders’ response to Karsting and TPA as “a unified voice.” “Everyone is for trade for agriculture,” said Miller, a member of Illinois Farm Bureau’s Farm Production
and Marketing Strength with Advisory Team. “Even the shippers who were here — we all understand Illinois exports depend on trade agreements. For us to be consistent, economic suppliers over the years, these trade agreements need to be in place.” Tamara Nelsen, IFB senior director of commodities, agreed with Miller’s assessment that “agriculture groups uniformly are on the side of the administration and promotion of TPA.” Nelsen continued, “We’ve moved from talking about what the benefits of trade are for agriculture to the importance of trade because we’ve seen the benefits. We need to be talking to other sectors, like small and medium businesses and manufacturing firms.” IFB has always supported congressional-granted TPA. Congress has granted trade
DRIVING SKILLS TESTED
promotion authority to every president since Gerald Ford. TPA “enables the president and USDA and USTR (U.S. Trade Representative) to have a process and foundation to include Congress ... and allows an up or down vote,” Nelsen said. A lengthy, arduous negotiation process involves much work with constituents before an agreement is finalized, she noted. Karsting described agriculture stakeholders’ interest in “moving the needle” on TPA. “Illinois farmers need to be sure they understand what is at stake,” he said. “We cannot sit back and rest on our (export) laurels because we know the world changes. “At the end of the day, people look at the deal and say, ‘Are we better off with or without that?’ And in agriculture’s view, we say, ‘We’re better off with it,’” Karsting summarized.
Sponsors of Terrorism list, among other efforts to normalize relations with the island neighbor. The Illinois Cuba Working Group (ICWG), of which Illinois Farm Bureau is a
member, reconvened last week in Chicago to reflect on its progress and outline its next steps, said Tamara Nelsen, IFB’s senior director of commodities who attended the meeting. “As we have already seen, this is a step-by-step process, and removing Cuba from the list of State Sponsors of Terrorism is an important next See Cuba, page 2
Illinois State Trooper and Safety Education Officer Sean T. Ramsey provides some driving simulator tips to Illinois FFA Treasurer Willow Krumwiede, center, and Illinois FFA Reporter Andrew Klein. The officers joined more than 400 other FFA members attending the 2015 Illinois Farm Bureau & Affiliates Youth Conference. Staged at the Crowne Plaza Hotel in Springfield, the conference theme focused on “Proud Traditions, Sparking Ambitions.” Attendees learned about career opportunities, personal development and the importance of their role in the future of agriculture. (Photo by Cyndi Cook)
Quick Takes
FarmWeek • Page 2 • Monday, April 6, 2015
EXPLOSIVE MILK LESSON
TAKE A BIODIESEL SURVEY — How do you use biodiesel on your farm? The Illinois Soybean Association (ISA) wants to know. Responses about your usage and experience with the fuel will help ISA better understand how biodiesel helps farmers who grow soybeans for fuel. Farmers who take the survey will receive a free cable clamp. To take the survey, go to {ilsoy.org/biodiesel/farmersurvey}.
RETIREMENT FEARS, DREAMS — Young Americans fear being able to save enough for a comfortable retirement, while current retirees said they’re happy with the choices they’ve made. That’s what the latest COUNTRY Financial Security Index survey shows. Nearly half of Americans under the age of 30 (49 percent) do not feel in control of determining their retirement date. Reaching a savings goal remains the No. 1 concern regarding their ability to retire. Seventy-nine percent of retirees age 65 and older said they are living the retirement of their dreams. Among those with a retirement income of $50,000 to $75,000, a large majority (82 percent) said they’re living their ideal retirement.
GROWMARK PLANS TO ADD FUEL TERMINAL — GROWMARK Inc. has entered an agreement with Magellan Pipeline Company, L.P. to buy a refined fuels terminal near St. Joseph, Mo. Terms of the acquisition were not disclosed. Acquiring the facility will enable GROWMARK to ensure continued supply of refined fuels and solidify the cooperative’s commitment to the energy business and to northwestern Missouri and northeastern Kansas, according to Kevin Carroll, GROWMARK energy division vice president. In addition to current diesel fuel availability at the terminal, GROWMARK intends to offer ethanol blends of gasoline in the future. Magellan will continue to deliver refined fuels into the St. Joseph terminal via its Midwest pipeline system. AG PREMIUM FUND CLARIFICATION — The $5 million recently swept from the Illinois Department of Agriculture’s (IDOA) agricultural premium fund does not affect 2015 fairs, according to IDOA officials. The fiscal year 2016 state budget contains funding for 2015 fairs. The current fiscal year 2015 budget funded 2014 fairs and that money already was dispersed. The General Assembly approved and Gov. Bruce Rauner signed a measure taking money from several funds and a 2.25 percent across-the-board cut to fill a $1.6 billion deficit in the current state budget.
(ISSN0197-6680) Vol. 43 No. 14 April 6, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.
Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2015 Illinois Agricultural Association
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Nefertiti Williams–Bey, wearing cow hat, and Guillermo Cruz, left, Chicago High School for Agriculture Sciences (CHAS) students, help third graders conduct a milk explosion at the Cook County Farm Bureau Foundation Ag Day celebration. The experiment helped students learn about the properties of fat and protein in milk. More than 440 third grade students from Wadsworth STEM, Mount Greenwood and Sherwood School (all in Chicago), St. Cletus School (LaGrange), Walker School (Bedford Park), and Graves and Walsh Schools (Summit) visited CHAS for the Ag Day program. Students learned about Illinois’ top agriculture commodities from representatives of the University of Illinois Extension, CHAS students, Nutrients for Life, Illinois Pork Producers, the Westside Beeboyz and Cook County Farm Bureau volunteers. (Photo by Diane Merrion, Cook County Farm Bureau agriculture literacy coordinator)
U of I develops faster SCN test, continues research Farmers soon can test their fields for soybean cyst nematode (SCN) in much less time and gain more precise data, thanks to the University of Illinois. U of I researchers recently developed a system that tests for SCN about 20 times faster than current technology. The current method for SCN testing involves pulling soil samples from many acres and pooling the samples to establish one reading on the SCN population, according to Kaustubh Bhalerao, principal investigator for U of I’s SCN project. The new system provides twice as many checks at a cost
of about $2 per acre compared to the current cost of about $5 per acre to screen for SCN. The new system uses an extractor that processes soil samples to separate the eggs. One extractor unit has four channels for processing, so multiple units can be used as needed. An automated image acquisition and analysis system counts the eggs. “With current technology, an average company is testing about 3,000 samples a year,” Bhalerao said. “With our technology, they should be able to do 30,000 or more.” Soybean growers should welcome the technology to the annual battle with the pesky
nematodes. Farmers typically lose 5 to 10 percent of bean yields each year to SCN. In other soy research news, researchers at the U of I teamed with partners from Iowa State, Michigan State, Purdue and the Ontario Ministry of Agriculture to study sudden death syndrome (SDS) in soybeans. SDS, which was first reported in Arkansas in the 1970s, now resides in nearly every state that produces soybeans. The team of researchers are looking for answers to SDS control beyond typical production practices, which include crop rotation and planting disease-resistant varieties.
Continued from page 1 step,” Nelsen said. “We recognize that each of these steps will require bipartisan support, and our farmers look forward to working with all of our leaders to ensure continued progress on this issue.” Among other steps, ICWG advocates for Illinois lawmakers to take the state’s progressive position on Cuba to the national Tamara Nelsen level. The group also invites other states to similarly adopt Illinois’ resolution on Cuba trade. An Illinois resolution in 2012 led to the formation of ICWG, a group of stakehold-
ers that intends to turn Cuba from an enemy into an ally through mutually beneficial trade relations. Positive strides have compounded over time and even before the group’s founding, as IFB and farm associations for at least two decades have set policies and taken action to support expanded trade with Cuba, Nelsen said. Meanwhile, Nelsen last week met with fellow ICWG members who also share steadfast enthusiasm for Cuba, from real estate and travel professionals to lawyers and politicians, including Rep. Dan Burke, a Chicago Democrat. In December, President Obama announced plans to normalize relations with Cuba and indicated the nation’s removal from the State Sponsors of Terrorism list could
happen by June. Cuba’s removal would ease some bank concerns to provide loans, credit or support to companies that wish to do business with Cuba. This would pave the way for progress on the banking and credit terms moving with Obama’s announcement, Nelsen said. Such a situation helps agriculture, as the requirement for Cuba to pay cash in advance and not obtain credit challenges food and agriculture trade. Projections indicate the president may push to lift the embargo before he leaves office. “It goes to everybody’s gut feeling and heart that this embargo is just wrong, and we need to get rid of it,” Nelsen said. “It’s heartening to see things changing.”
Cuba
Big acreage shift doesn’t materialize; market swings ensue Page 3 • Monday, April 6, 2015 • FarmWeek
BY DANIEL GRANT FarmWeek
It seems all eyes were on USDA’s estimate of soybean acres prior to the much-anticipated prospective plantings report last week. But it turns out the corn acreage estimate delivered a much bigger jolt to traders and subsequently sent the market reeling, although it bounced back later in the week. USDA estimates U.S. farmers this spring will plant 89.2 million acres of corn, about 500,000 more acres than the average trade guess, and 84.6 million acres of beans. Soy plantings, if realized, would set a new record. But the estimate came in about 1.2 million fewer acres of beans than the average trade guess. Meanwhile, USDA pegged all wheat acres at 55.4 million, down 3 percent from 2014. “The report appears bear-
ish to corn and somewhat friendly to the wheat and soybean markets as we move forward,” Randy Martinson, analyst with Progressive Ag, said for full details on the USDA acreage report.
during a teleconference hosted by the Minneapolis Grain Exchange. “We’re looking at (corn) acres much higher than anticipated by the trade,” he continued. “That, I think, surprised everybody and is why we’re seeing the corn market on the defense.” USDA last week also raised its estimate of corn stocks in all positions by 11 percent from a year ago to 7.74 billion bushels. “The acres and stocks reports weren’t friendly (for the corn market),” Martinson
said. “You’re looking at a double-whammy.” Martinson believes old-crop corn prices could slip back to previous lows in the $3.50 range. In Illinois, USDA projects farmers will plant 11.7 million acres of corn and 9.9 million acres of beans. If realized, corn plantings in the state would be the lowest since 2006, while soybean plantings would be up 1 percent from a year ago. Illinois farmers also intend to plant 40,000 acres of sorghum, up 74 percent, and 40,000 acres of oats, up 14 percent from last year. “We’re seeing a bit of an increase in sorghum acres,” Martinson said. “Strong demand from the export market likely is encouraging that (boost in sorghum plantings).” Nationwide, soybean acres could increase just slightly in the “I” states (up 1 percent in Illinois and 2 percent in
Leon McClerren, a wheat grower from Thompsonville and president of the Franklin County Farm Bureau, pauses while employee Kenny Smith, Thompsonville, climbs off a spray rig on a 35-acre field. The two last week applied Harmony herbicide to the crop. Wheat development in southern Illinois got off to a slow start, and there were concerns about winter and water damage, but overall, McClerren believes most stands look good so far this spring. (Photo by Ken Kashian)
Wheat conditions improve; management crucial
Farmers hopefully won’t have to tear up many wheat fields this spring based on recent assessments of the crop. Leon McClerren, a wheat grower from Thompsonville, reports good stands on most of his 1,000 acres of wheat, for now. “I feel pretty good about the prospects right now,” McClerren, president of the Franklin County Farm Bureau, told FarmWeek. “It seems to have come through winter in pretty good shape. “There are a few bare spots from water damage,” he continued. “But, overall, stands look good.” Crop condition ratings improved last month compared to February. The wheat crop around the state March 30 was rated 52 percent good to excellent, 36 percent fair and 12 percent poor or very poor. Crop condition ratings at the end of February were 49 percent good to excellent, 38 percent fair and 13 percent poor or very poor. “I’m optimistic we can still have a high yield-
ing crop,” said Kyle Brase, president of the Illinois Wheat Association and a grower from Edwardsville. “It just might take a little more work.” Farmers encountered weather issues last fall that slowed planting. Conditions in November ended up unseasonably cold. The situation resulted in fewer acres of wheat seeded in Illinois. It also delayed development of the crop. “It’s not quite as far along as normal this year,” said McClerren, who was unable to plant about 15 percent of his intended wheat acres. McClerren last month applied the first of two nitrogen applications to his crop. He also plans to apply herbicide soon. Illinois farmers last fall planted 600,000 acres of winter wheat, down 19 percent from the previous year. The average state wheat yield (67 bushels per acre) last year tied a record. But a number of farmers, particularly in southeast Illinois, struggled with quality issues. — Daniel Grant
Indiana and Iowa). USDA looks for much of the growth in soy acres to occur down south where bean plantings could jump 23 percent in Georgia and Oklahoma, 10 percent in Tennessee
and 8 percent in Louisiana. The increase in soybean plantings could be at the expense of cotton in some southern states. USDA projects cotton plantings could shrink 13 percent this year.
Illinois Soybean Board petitions available
Six Illinois Soybean Board (ISB) positions will hold director elections later this year. Petitions for those positions must be filed by May 15. Petitions can be obtained from the Illinois Department of Agriculture, local University of Illinois Extension offices and the Illinois Soybean Association office. ISB manages and invests Illinois soybean checkoff funds in research, promotion and education programs that enhance soybean production, and use and support national and international market development. District elections will take place in: • District 2: Cook, DuPage, Kane, Kankakee, Lake, McHenry and Will counties. • District 10: Christian, DeWitt, Macon, Moultrie and Shelby counties. • District 11: Champaign, Coles, Douglas, Edgar and Piatt counties. • District 14: Clark, Crawford, Cumberland, Effingham and Jasper counties. • District 16: Clay, Edwards, Lawrence, Richland, Wabash, Wayne and White counties. • District 17: Jackson, Jefferson, Perry, Randolph and Washington counties. Due to tenure provisions, District 2 Director Duane Dahlman of Marengo and District 14 Director Donald Guinnip of Marshall will not be eligible for re-election. Directors presently serving and eligible for another threeyear term include Jered Hooker of Clinton, District 10; Doug Schroeder of Mahomet, District 11; Tim Scates of Carmi, District 16; and David Droste of Nashville, District 17. To be eligible to serve as a director, a candidate must be an Illinois resident and a resident grower of the district he or she seeks to represent, of legal voting age and a contributor to the soybean checkoff. Petitions filed with the Illinois Director of Agriculture must include the following number of signatures: District 2, 131; District 10, 134; District 11, 152; District 14, 121; District 16, 110; and District 17, 109. Elections will be held July 7 at county Extension offices in districts where vacancies exist. For more information, visit {ilsoy.org}.
Kansas growers fund gluten-free wheat
The Kansas Wheat Commission is spending $200,000 to breed wheat for people who can’t eat gluten. Researchers’ goal will try to identify everything in wheat’s DNA sequences that can trigger a reaction in people suffering from celiac disease. The only known treatment for the disease is to eat a gluten-free diet and to avoid all foods that contain wheat, barley and rye. Scientists will test for reactions by combining the proteins with antibodies produced
by the human immune system. The wild relatives of wheat, as well as modern varieties, will be part of the study. Researchers will explore a Kansas wheat variety repository that dates back to the 1900s in hopes of finding a variety. While researchers at the Celiac Disease Center could not reach a consensus on the research project’s viability, the head of the Celiac Disease Foundation hopes the federal government will fund more research if the disease is in the public eye.
Grain stocks grow; attention turns to spring weather FarmWeek • Page 4 • Monday, April 6, 2015
BY DANIEL GRANT FarmWeek
Crop stocks in all positions reflect last year’s record crops. And, unfortunately, that could weigh on the markets heading into planting. USDA last week reported corn stocks in all positions on March 1 totaled 7.74 billion bushels, up 11 percent from the same time last year. Meanwhile, soybean stocks in all positions total 1.33 billion bushels, up 34 percent. USDA pegged all wheat in storage at 1.12 billion bushels, up 6 percent from a year ago. “There’s an enormous amount of corn and soybeans on farms, unpriced,” Joe Vaclavik, president of Standard Grain, said during a webinar hosted by CME Group. “Producers will be more worried about that (moving forward),” he continued. “The market has a tough time rallying when farmers are holding a lot of grain.”
USDA estimates farmers as of March 1 held 4.38 billion bushels of corn and 609 million bushels of soybeans in farm storage, both up significantly from last year. USDA pegs off-farm stocks at 3.36 billion bushels of corn and 725 million bushels of beans. “The corn stocks number is the one really throwing the market a curve ball,” said Bill Tierney, chief economist at Ag Resource Co. The March 1 corn stocks estimate totals about 136 million bushels more than the average trade guess, according to Darrel Good, University of Illinois ag economist. Good believes the corn stocks estimate doesn’t imply feed and residual use progressed at a slower rate than previous estimates, though. Darrel Good “Given the expansion that is taking place in hog, broiler and dairy cow numbers, the
projection of 5.3 billion bushels (of feed and residual use) for the year still appears reasonable,” the U of I economist noted. The stocks estimate for soybeans actually came in about 12 million bushels below trade expectations. But the expectation of record bean plantings this spring in the U.S. and this year in South America could keep a lid on prices. “Oilseeds have more downside risk than corn the next 12 to 18 months,” Tierney said. Any price rallies near term likely depend on spring weather and any planting issues. “Part of the negative corn price response to the estimates (corn acres also were higher than the trade expected) likely reflects inflated trend yield estimates for 2015 and perhaps an incorrect interpretation of the pace of feed and residual use during the first half of the marketing year,” Good said. “Attention will now turn to spring weather and planting progress.”
Rain dampens any ideas of early planting, spring fieldwork BY DANIEL GRANT FarmWeek
The calendar turned to April nearly a week ago and temperatures are warming, but most planters remain parked in the shed. A series of showers rolled through much of the state last week, and slowed fertilizer applications and other preparatory fieldwork. And the forecast calls for more chances of precipitation, particularly in rain-drenched southern Illinois. “The forecast the next seven days calls for a lot of rain up the Ohio River Valley,” Jim Angel, state climatologist with the Illinois State Water Survey, told FarmWeek late last week.
‘They’ll probably be waiting for things to dry out in southern Illinois for a while.’ — Jim Angel State climatologist, Illinois State Water Survey
“They’ll probably be waiting for things to dry out in southern Illinois for a while,” he continued. “We could have the unusual situation (this spring) where some farmers are getting in the field in northern Illinois before those in southern Illinois.” Conditions were dry in
northern Illinois last month with less than 2 inches of precipitation. Precipitation in central Illinois in March was close to average (2 to 4 inches), while southern Illinois was doused with 4 to 8 inches, which produced moderate flooding on tributaries of the Wabash and Ohio rivers, Angel noted.
And it appears the split weather pattern of wet conditions in the south and dryness in the north will continue. “Dry conditions extend across the Upper Corn Belt,” Angel said. “In the short term, dry conditions can be beneficial for spring planting as the soils dry out and warm up faster.” Temperatures and precipitation are forecast to be close to average the next three months after another cold start to the year. The statewide temperature in March averaged just 38.2
degrees, 3.1 degrees below normal. This continues a chilly trend as the temperature in Illinois the first three months this year averaged 27.8 degrees, 5.1 degrees below normal, making it the 16th coldest on record for January through March. “We’ve had three colderthan-average months, but not as severe as last winter,” Angel said. “The parallel is last April, May and June temperatures were close to average before we reverted back to colder temperatures.” The average temperature in January through March 2014 was the fourth coldest on record. This spring, Angel looks for temperatures to warm back up closer to normal after a second consecutive cold winter. Overall, topsoil moisture in the state last week was rated 5 percent short, 76 percent adequate and 19 percent surplus.
Production SWAT explores transportation ideas Agriculture faring well members but also the parts of the state they in federal budget process represent, their discussion raised regional views Page 5 • Monday, April 6, 2015 • FarmWeek
BY KAY SHIPMAN FarmWeek
BY JOANIE STIERS FarmWeek
So far, agriculture has fared well during congressional review of the federal budget for fiscal year 2016. Proposed amendments to chip away at crop insurance premium subsidies and remove support of the harvest price option failed to reach a vote, said Adam Nielsen, national legislative director for Illinois Farm Bureau. “We are not going to let our guard down,” he said. “They are likely to resurface again during the appropriations process in coming weeks.” In February, President Obama released to Congress his $3.99 trillion federal budget request for fiscal year 2016, which includes a mix of spending cuts and revenue increases. The House and Senate Budget Committees passed resolutions in late March. Now, the appropriations committees of each chamber work through the bills. Congress appears to be on track to follow its budget process, which ends in September. “It looks like, for the first time in a long time, there is an opportunity to get back to what they call ‘regular order,’” Nielsen said. The ag committee has been instructed to make about $1 billion in cuts over 10 years. Nielsen predicts any cuts would likely be made in nutrition programs. IFB will closely watch this process. Thanks to a strong response from farm groups, Congress recognizes it needs to let the new farm bill legislation work, Nielsen said. Still, the budget process gives opponents the opportunity to construct amendments against agricultural programs throughout late spring and early summer. “If the time comes, you have to be ready to defend our programs,” Nielsen said.
Senate amendments signal need to clarify WOTUS
BY JOANIE STIERS FarmWeek
Two successful amendments to the Senate budget resolution demonstrated strong support to clarify the murky “waters of the U.S.” (WOTUS) rule. “With these Senate amendments of the proposed waters rule, there appears to be an appetite to dramatically limit EPA (Environmental Protection Agency) and Corps of Engineers’ jurisdiction,” said Adam Nielsen, Illinois Farm Bureau national legislative director. “I think it holds open the opportunity to make a legislative fix after the rule is final. And we anticipate a correction will be needed.” During the budget “vote-arama” session in late March, the Senate unanimously approved Amendment 755, which urges the EPA and U.S. Army Corps of Engineers to clearly state the water exemptions that they “claim they are not seeking to regulate.” The Senate also voted 5940 to pass Amendment 347, which requests the agencies spell out the exemptions. While these amendments have no force of law, they put the Senate on record for this issue, Nielsen said. The proposed WOTUS rule expands federal jurisdiction under the Clean Water Act. The rule lacks clarity about
what waters can be controlled, which has ignited concern among farmers nationwide who collectively oppose regulation on private ponds, puddles, ditches and locations where water runs only when it rains. “We are just waiting to see what the rule is and we keep hearing the EPA administrator suggest they listened very carefully to agriculture’s concerns and those concerns will be reflected,” Nielsen said. “That remains to be seen.” The EPA now says the final rule on WOTUS will arrive “later this spring,” Nielsen said. In the meantime, IFB urges USDA and the Small Business Administration to comment on how the rule will impact its industries. If the final rule remains unclear, IFB will encourage legislative action. One option is congressional disapproval of the regulation, though difficult and rarely achieved, Nielsen said. Otherwise, lawsuits may challenge the regulation with congressional intent, spoken clearly with these Senate amendments. “Unfortunately, once the rule is published, it’s final,” he said. “The agencies will interpret it as they see fit. I suspect there won’t be any lag time in enforcement.”
Members of Illinois Farm Bureau’s Farm Production and Marketing Strength with Advisory Team (SWAT) delved into river infrastructure proposals last week at the request of the IFB Board. The group received details on two proposals regarding river locks and dams, then launched an in-depth discusChad Schutz sion. IFB Director Chad Schutz of White Hall, who serves on the SWAT, thanked fellow members for their time investment and providing valuable feedback to the IFB Board. “We (board members) wanted additional input from other farmers. There’s no way, with all the business the board has, we would have had a five-and-a-half hour conversation on this,” Schutz said. Given the diversity of not only the SWAT
on river issues as well as infrastructure costs and funding. Team members also sought more information on certain points, such as river transport trends compared to other forms of transportation. Stan Crites, chairman of the Production and Marketing SWAT, offered that transStan Crites portation issues proved the perfect topic for team members and an issue not being explored by other SWATs. The team’s views will be shared with the board. “It’s very good to give input to the (IFB) board. We basically saved them a day. Maybe they will explore some of the issues we raised,” Crites said. Schutz speculated the IFB Board may seek feedback from SWAT members on other issues in the future. Even after a long day, Crites gave SWAT two thumbs up. “I’ve learned so much. More people should be involved with SWAT,” he concluded.
Bacon craze surges along with protein demand Pork producers take heart — consumers want more bacon than ever. Supermarket analysts predict a resurgence of bacon demand.
American bacon sales have climbed for five consecutive years, reaching a record $4.4 billion last year — even as prices reached a 30-year high and the porcine epidemic
diarrhea virus spread. Growing consumer interest in high-protein diets and a slew of new product offerings help drive demand, according to reports.
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Being neighborly and aware reduces spray drift
FarmWeek • Page 6 • Monday, April 6, 2015
BY KAY SHIPMAN FarmWeek
Communication with a capital C helps farmers and pesticide applicators reduce potential crop damage from spray drift. “We’re farmers, too. We understand the issues and
they’re applied,” Taylor added. Explaining to neighbors, both farmers and nonfarmers, about pesticide-sensitive crops and their locations raises awareness, said Bronwyn Aly, a University of Illinois Extension small farm and local food educator based in Carmi.
Lowdown on DriftWatch Farmers and beekeepers may register pesticide-sensitive crops and beehives at no cost on Driftwatch, an interactive web-based map at {driftwatch.org}. Registered locations cover organic crops and livestock, certified organic crops, vegetable acres, vineyards, floriculture, fruit acres and beehives. Registered growers and beekeepers may provide contact information. The site is geared to commercial operations. weather challenges, and how difficult timing can be. We’re all in this together,” said Joe Taylor, who owns and operates Sleepy Creek Vineyards in Fairmount. Taylor said he talks with neighbors, both farmers and homeowners, about his grapes’ sensitivity to pesticides, especially broadleaf pesticides, such as dicamba and 2,4-D. “Those two volatilize and can drift miles a day or two after
“For corn and soybean farmers, if you have any suspicions (about a sensitive crop location) go talk with your neighbor,” Aly said. This year, Illinois farmers and pesticide applicators need to use additional caution because Illinois is one of six states approved for Enlist Duo herbicide. Reid Sprenkel of FieldWatch Inc. advised farmers and applicators to be aware of those label restrictions.
Label restrictions include 15 mph maximum wind speeds, and the wind can’t be blowing toward neighboring fields of fruiting vegetables, grapes and cucurbits, which include pumpkins, squash, watermelons and cantaloupes. An interactive web-based map, known as DriftWatch, offers one way to denote and find pesticide-sensitive crops. FieldWatch, a nonprofit corporation, now operates the multistate online mapping service previously operated by Purdue University. Through DriftWatch, farmers and beekeepers in Illinois and 12 other states voluntarily register, map pesticide-sensitive locations online and pro-
farmers visit {driftwatch.org} to locate any registered acres or beehive locations. However, not all sensitive locations are mapped online, so Sprenkel advised farmers to be watchful. Increased vineyard mapping remains a goal of Jennifer
Montgomery, executive director of the Illinois Grape Growers and Vintners Association. “We’re encouraging people to register, and we are working on getting people to talk with their neighbors,” Montgomery said. Aly noted DriftWatch lists fewer sensitive areas south of Mount Vernon, and said she plans to encourage more growers to register their fields. Marking field locations with signs denoting pesticide-sensitive crops also helps, Taylor said. This year, FieldWatch sells several new signs, including one for hive locations, Sprenkel added. “It all goes back to being neighborly,” Aly concluded.
could not spread manure on frozen and rain-soaked fields or when rain is in the immediate forecast. They would face penalties for every day they are in violation. If the bill is signed, rules would need to be written; proponents expect farmers would receive more details by December. Small livestock farms may apply for a one- or two-year exemption from the ban — if they submit a plan to show how they are making an
attempt to comply. The new rules also apply to contract manure haulers. Dredged sediment would no longer be dumped in the lake within five years. The bill requires phosphorous testing at large wastewater treatment plants beginning next year. The measure also creates a new state coordinator to oversee monitoring, treating and testing of algae and to work with wastewater plants.
vide their contact information at no charge. Commercial operations, not home gardeners, comprise the intended users. Sprenkel recommended
to learn more about DriftWatch.
Ohio lawmakers pass nutrient rules
The Ohio legislature unanimously passed new nutrient rules for farmers and other restrictions aimed at reducing toxic algae in Lake Erie, which contaminated Cleveland’s water supply last year. Gov. John Kasich is expected to sign the bill. Under the wide-ranging bill, farmers in northwestern Ohio
Compost school offered to new, skilled operators
University of Illinois Extension and partners will host a Midwest Composting School June 2-4 at the Holiday Inn Express, Lake Zurich, for new and experienced mid- to largescale composting operators. The early registration deadline is May 2 and limited to 30 participants. Extension specialists and other experienced composters will present information on composting basics, regulations and permitting, compost quality and testing, and marketing. Emphasis will be placed on the use of food scraps and similar feedstocks. Registration costs $395 per person until May 2 and then increases to $450 per person. Registration closes after May 28. The fee covers materials, lunches and dinners on June 2 and 3, and lunch and a tour on June 4. The Holiday Inn Express, Lake Zurich, offers breakfast for those staying there. For information and to register, visit {extension.illinois. edu/go/midwestcompost}.
New flavors, ingredients likely with organism engineering By manipulating the DNA of such microorganisms as yeast and bacteria, engineers are working to devise methods, allowing chefs, brewers and bakers to create new flavors or ingredients. A Boston-based technology startup company opened a facility that will use computerdirected robots to produce engineered organisms. Food products produced
from fermentation likely will be the first candidates. Critics link the technology to genetically modified ingredients. But supporters argue scientists can produce more natural products than currently available. One company created a vanilla product using synthetic biology as an alternative to artificial vanilla flavor already available in some products.
Hog returns fall back to earth; slaughter capacity tightens
Page 7 • Monday, April 6, 2015 • FarmWeek
The fortunes of hog producers changed dramatically in a matter of months. Hog returns went from a record average of $53 per head last year, including $70 per head in the second and third quarters of 2014, to near breakeven this year, according to Chris Hurt, Purdue University ag economist. “We have Chris Hurt the lowest feed cost since 2010,” Hurt said. “But we expect the profit per head to fall from a record $53 last year to pretty close to break-even this year.” Production costs could average near $70 per hunBY DANIEL GRANT
dredweight on a carcass weight basis, according to Steve Meyer, president of Paragon economics. But 2015 price estimates range from just $66 to $75 per hundredweight, on a carcass weight basis, compared to $92 to $117 last year. Hurt projects hog returns this year could average negative-$10 per head in the first quarter, and $5 to $10 in the second and third quarters. He doesn’t foresee a repeat of 1998, though, when slaughter capacity was exceeded and hog prices subsequently tumbled as low as the single digits. “The worry had been we were expanding the (swine) herd more dramatically than anticipated,” Hurt said. But USDA’s March hog and pigs report showed “we just have modest expansion. That’s a little bit of
Spring picnic costs increase slightly
Higher retail prices for several foods, including sirloin tip roast, ground chuck, deli ham and orange juice, resulted in a slight increase in the American Farm Bureau Federation’s Spring Picnic Marketbasket survey. The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals totaled $53.87, up 60 cents or about 1 percent compared to a survey conducted a year ago. Of the 16 items surveyed, eight increased and eight decreased in average price. “The 1 percent increase shown by our survey tracks closely with the Agriculture Department’s forecast of 2 percent to 3 percent food inflation for 2015,” said John Anderson, AFBF’s deputy chief economist. Items showing retail price increases from a year ago included: • sirloin tip roast, up 14 percent to $5.71 per pound; • ground chuck, up 12 percent to $4.61 per pound; • orange juice, up 7 percent to $3.47 per half-gallon; • toasted oat cereal, up 7 percent to $3.12 for a 9-ounce box; • deli ham, up 6 percent to $5.53 per pound; • eggs, up 4 percent to $2.05 per dozen; • shredded cheddar cheese, up 3 percent to $4.59 per pound; and • potatoes, up 2 percent to $2.74 for a 5-pound bag. These items showed modest retail price decreases compared to a year ago: • flour, down 9 percent to $2.52 for a 5-pound bag; • bacon, down 8 percent to $4.44 per pound; • apples, down 8 percent to $1.47 per pound; • chicken breast, down 7 percent to $3.28 per pound; • whole milk, down 6 percent to $3.45 per gallon; • vegetable oil, down 6 percent to $2.67 for a 32-ounce bottle; • bagged salad, down 5 percent to $2.47 per pound; and • white bread, down 3 percent to $1.75 per 20-ounce loaf. Price checks of alternative milk and egg choices not included in the overall marketbasket survey average revealed the following: 1/2 gallon regular milk, $2.24; 1/2 gallon organic milk, $4.47; and one dozen “cage-free” eggs, $3.57. Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $53.87 marketbasket would be $8.62. AFBF began conducting informal quarterly marketbasket surveys of retail food price trends in 1989. The series includes a spring picnic survey, summer cookout survey, fall harvest survey and Thanksgiving survey. A total of 86 shoppers in 29 states participated in the latest survey conducted in March.
comfort for overall supplies.” Producers intend to increase hog farrowings just 2 percent this quarter followed by a 2 percent reduction in the June-August quarter, according to USDA. The breeding herd increased just 2 percent last quarter, well below expectations, Hurt noted. As for slaughter capacity, the industry can process about 2.438 million head per week, according to the CME Group’s
Daily Livestock report (a new survey of slaughter capacity will be completed in the weeks ahead). But plants can push a few more hogs through by adding one to two hours per shift or adding Saturday shifts for a short time. “We do not see this fall (slaughter numbers) being a big problem if the USDA inventory and intention numbers in the (March hogs/pigs) report are right,” authors of
the Daily Livestock Report noted. “Does this mean we are out of the woods? Absolutely not.” Risk remains for a capacity challenge in the fall of 2016. No new processing plants are in operation and the last major plant expansion dates back to last spring. The next new hog processing facility, located in Michigan, may not open until 2017 or 2018, according to the Daily Livestock Report.
been donated. Funds raised from this auction will be used to make improvements to the
Sale items include cattle semen and embryo packages, along with WIU-bred heifers; agronomy items, including corn seed; agriculture advertising and art prints; and other items. Items for sale may be viewed at Lowderman Auction Options by visiting {lowdermanauctionoptions. com/index.html.} For more details, contact Cunningham at 979-2205681 or via email at S-Cun ningham@wiu.edu or Hoge at 309-255-2735 or via email at MD-Hoge@wiu.edu.
WIU School of Ag plans first Livestock Legacy Sale;
Fundraiser for WIU ag field laboratory improvements
Western Illinois University (WIU) School of Agriculture students and faculty have organized an online auction Tuesday and Wednesday to raise money for facility improvements at the WIU Agriculture Field Laboratory. Mark Hoge, associate animal science professor, and students in his livestock merchandising class organized the first WIU Livestock Legacy Sale, which will be hosted online by Lowderman Auction Co. “All auction items have
for more information about the WIU Livestock Legacy Sale.
WIU Performance Bull Test, by helping to fund a feeding system that would allow Western to collect individual animal intakes, and thus calculate individual animal feed efficiency,” said Samantha Cunningham, assistant agriculture professor.
Ag education tour proves successful FarmWeek • Page 8 • Monday, April 6, 2015
About 200 students recently attended the Moultrie County Farm Bureau annual Ag Education Farm Tour at the LovBY TYLER HARVEY
ington farm of Mike and Joel Reedy. Students visited several stations, including farm machinery, farm safety, chemical look-a-likes, seed and livestock. The farm tour gave local schools a chance to bring their preschool and third grade classes to learn about a day on the farm. The children learned about seed, fertilizer and equipment costs, and the steps
Pam Hissong, Moultrie County Farm Bureau Ag in the Classroom coordinator for more than 20 years, introduces students to a week-old baby goat during the annual Moultrie County Farm Bureau Ag Education Farm Tour. About 200 students attended and learned more about agriculture. (Photo by Tessa Welty, Moultrie County Farm Bureau membership secretary)
farmers take to prepare fields from planting through harvesting the crops. Students also learned about chemical look-a-likes presented by University of Illinois Extension. Sullivan FFA members led the livestock and seed germination
stations. The students enjoyed a snack of chocolate chip cookies and a carton of milk donated by Prairie Farms.
Tyler Harvey serves as manager of Douglas and Moultrie County Farm Bureaus.
Scholarships available to college crop majors Undergraduate and graduate university students pursuing degrees in crop-related disciplines can compete for $20,000 in Syngenta scholarships. Applicants must be enrolled as of spring 2015 in an accredited agriculture program at a U.S. land grant university. Applicants must complete an online application and submit a 750 to 1,000 word essay based
YOUNG LEADERS HARVEST BOUNTIFUL FOOD BANK DONATIONS
on six commitments of The Good Growth Plan: make crops more efficient, rescue more farmland, help biodiversity flourish, empower smallholders, help people stay safe and look after every worker. Eligible students must apply by May 15 at {Syngenta-US.com/Scholarships}. This year’s scholarships will be awarded to winners in fall 2015.
Above, Farm Bureau Young Leaders from Kane and Champaign counties present a $1,500 check to Steve Ericson, Northern Illinois Food Bank director of food procurement. District 1 county Farm Bureaus secured the donation through the Young Leader Harvest for All hunger relief effort. Part of the funds came from the sale of Harvest for All die-cast tractors much like the tractor pictured. Champaign County Young Leaders joined their Kane County peers for a social gathering, tours of Fermilab National Accelerator Lab in Batavia and Oberweis Dairy in North Aurora, and a panel discussion about leadership and farming. Below, Kane County Farm Bureau Young Leaders present a $120 check to Ericson in response to a challenge from their Kendall County counterparts to raise $100 for local food pantries. Kane County Young Leaders raised $120 at their recent euchre tournament. Kane County, in turn, has challenged DeKalb, McHenry and Winnebago-Boone Farm Bureaus. (Photos by Ryan Klassy, Kane County Farm Bureau information director)
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Tuesday: • FarmWeek: “The Early Word” • David Yepsen, Paul Simon Public Policy Institute: first 100 days and special election • Bryce Anderson, DTN Wednesday: • Suzanne Moss, Illinois Department of Agriculture; Ken Koelkebeck, University of Illinois: Illinois poultry industry • T.J. Menn, Harvard University Farm Trek: introducing future leaders to agriculture
Thursday: • Sen. Jason Barickman, R-Bloomington; Kevin Daughtery, Agriculture in the Classroom education director: Common Core and PARCC testing • Erin Cleary, Illinois Pork Producers Association: Pork Institute Leadership trip Friday: • Don Schaefer, Mid-West Truckers Association • Stu Jacobsen, Illinois Queen Initiative: honeybee colony collapse disorder • Ryan Bond, Verdesian Technical Development: early season yield stresses
C
OOK — From Your Yard to Your Glass: Vineyard Planting for Home Enthusiasts workshop, 6:30 to 8:30 p.m. April 22 at the Farm Bureau office. Cost is free for members and $5 for nonmembers. Call 708-354-3276 or email membershipdebbie@ cookcfb.org to register. • Farm safety gear for members. Call 708-354-3276 to reserve free safety gloves and glasses. Quantities limited. RAWFORD — Farmland assessment meeting, 7 p.m. Thursday at Robinson Community Center. Brenda Matherly, Illinois Farm Bureau assistant director of local government, will speak on changes in the Farmland Assessment Law. ANCOCK — Women’s Committee luncheon, noon April 17 at Quincy Steamboat. Quincy Steamboat chefs will provide a seasonal gardening presentation after lunch. Call 3573141 for reservations by April 14. ANE — Touch-ATractor farm-city community open house, noon to 4 p.m. Friday, 10 a.m. to 4 p.m. Saturday and Sunday at the Farm Bureau office. Antique tractors, modern farm equipment, farm animals, raffle and more. Cost of Winner’s Choice Raffle tickets are $10 each or $25 for three. Proceeds will benefit Foundation ag education and college scholarships. Call 584-8660 for more details. EE — Order Lee County 2015 commemorative plat books. Cost is $35 each or three for $100. Books will be available for pickup June 14 at the 100th anniversary celebration. Orders and payment may be mailed to Lee County Farm Bureau, P.O. Box 198, Amboy, IL 61310, by April 15. CLEAN — “Farmland” movie screening, 6:30 p.m. Tuesday at Braden Auditorium in Bone Student Center on the Illinois State University Campus. A panel discussion with local farmers will follow the film. ONTGOMERY — Prime Timers luncheon meeting, noon April 15 at the Farm Bureau building. Bill and Andra Ebert, Heartland Mini Hoofs Therapy, will be present with their therapy horses. Members 55 years and older are invited to attend. Cost is $9. Call 532-6171 by Friday to register. ERRY — Livestock transportation seminar, 1 p.m. April 18 at the Du Quoin State Fairgrounds. Brenda Matherly, IFB assistant director of local government, and a representative from the Illi-
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Stay alert for spring planting
Page 9 • Monday, April 6, 2015 • FarmWeek
nois State Police will speak. Call 357-9355 by April 15 for reservations. ASHINGTON — CPR/first aid course, 6 to 9 p.m. April 13 at the Farm Bureau office. After completion of course, certification will be given for adult, child and infant CPR; use of an Automated External Defibrillator; and first aid. Cost is $10 for members and $15 for nonmembers. Call 327-3081 by Tuesday to register. HITE — Farm Bureau is seeking applications for the position of bookkeeper/administrative assistant. Send cover letter, resume and references to White County Farm Bureau, P.O. Box 367, Carmi, IL 62821, by April 30. Visit {whitecfb.com/em ployment.html} for more information.
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Spring planting season poses a high risk of injury for farmers as fatigue, stress and pressure build with long hours spent in the field. Along with the heavy workload and long hours, equip-
ment breakdowns and weather-related issues can add to seasonal challenges and stress. Contact with machinery presents the biggest risk for injuries and fatalities. You can
stay alert and safe by following a few basic tips: • Eat balanced meals. • Set realistic work priorities. • Consider hiring help for the busy weeks of planting; don’t try to do it all yourself. • Stay hydrated to maintain awareness. • Get a good night’s sleep. • Take a nap. Even a 20minute nap can help improve alertness. • Take a short walk; it’s unhealthy to sit for long periods of time. • Always have your cellphone on your person; view it as a safety feature. • Remember to share the roads safely with other vehicles.
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FarmWeek • Page 10 • Monday, April 6, 2015
Remote data collection more than getting ‘pretty pictures’
Remote sensing is hardly a new concept, although the tools one might use have certainly changed. Aerial- and satellite-based imagery have been around for several decades, but you can hardly pick up an ag magazine, access some blog or other news service and not be Sid Parks aware of the flood of articles on drones, Unmanned Aerial Vehicles (UAVs) or Unmanned Aircraft Systems (UASs), and their claims to transform the ag industry. First, if you do an Internet search for drone, you will likely get more military and other nonag references, which are outside our area of interest. As drone often has connotations like carrying missiles or spying on others, I will try to always use different terms when talking about acquiring remote agricultural data. UAVs or UASs, refer to the platform, control systems and processes needed to operate and collect data remotely withBY SID PARKS
out a person in the aircraft. Often it is imagery of visible light, but could be some other light spectrum wavelengths, which are then used to create various information products like Normalized Difference Vegetation Index maps, vegetation maps, etc. These aircraft may also carry a video camera to show action shots of field crop operations, which may be useful, but is a whole other topic. UAVs offer potential for identifying problems such as crop damage or drainage issues.
However, the rules to operate, choice of platforms and cost to acquire, and training to collect and process data are much more complex than simply making a decision to buy one. I feel there will be growers who choose to purchase and operate their own equipment. However, in my experience, there is a lot more to working with the data than flying the vehicle and publishing “pretty pictures.� After one looks at a few dozen pictures of fields, the novelty wears off, and it will
seem more like work electronically stitching images together to enable making a decision. Incorporating data into an information management program gets even harder and more time consuming. The Federal Aviation Administration recently dropped some of the requirements for low-altitude unmanned flights, reducing the per mission paperwork for commercial operators holding special waivers, but regulations are still restrictive. For that reason, I believe most growers
Sid Parks serves as GROWMARK’s agronomy information services manager. His email address is sparks@growmark.com.
When it comes to feeding soybeans to reach their yield potential, growers need to know there appears to be a significantly greater accumulation of nutrients during seed filling now than in the past. That’s one finding from a University of Illinois Crop Physiology Lab study led by researcher Fred Below. The study provides an updated set of nutrition needs for soybeans, identifying exactly which nutrients the plant needs, when those nutrients are accumulated throughout the season and where the plant uses those nutrients.
Field trials conducted during three years at DeKalb and Champaign showed soybeans develop later in the season, right before harvest, and that’s actually driving increased nutrient accumulation, said Ross Bender, a U of I doctoral candidate in crop physiology and lead author of the study. To determine nutrient needs, the researchers measured nutrient accumulation throughout the course of the whole growing season. They measured macronutrients, including nitrogen (N), potassium (K) and phosphorus (P), and the secondary macronutrients magnesium (Mg), calcium (Ca) and sulfur (S). They also measured micronutrients that are needed in smaller quantities, including boron (B), copper (Cu), iron (Fe), manganese (Mn) and zinc (Zn). The researchers determined phosphate (phosphorus) had the most potential to improve yield. The nutrient accumulates throughout a 70-day period during the growing season, and is put into grain at the end of the season more than any other nutrient, Bender said. “How to supply phosphate when the plant needs it later in the growing season is one of the challenges,� he explained. In addition to phosphate and potassium, Bender said nitrogen, sulfur and copper also proved to be important nutrients for continued, high-yielding success. Nitrogen is most important at the end of the season because the grain contains a lot of protein, which is made up of nitrogen. This is why soybean grain has been considered a good feed source. Bender said the higher the soybean yield, the more protein produced and the more nitrogen needed. Though nitrogen may not be considered an important nutrient, as soybean can obtain nitrogen from the air, the way the plant moves nitrogen from the leaf to the grain during the growing season (about 50 days straight) proves that it is a vital
nutrient for making grain and increasing yield, he said. Sulfur is another nutrient Bender said should be considered for use as a fertilizer. Because less sulfur is provided from the atmosphere now, due to cleaner fuels, for example, less gets deposited in fields on an annual basis. He added that sulfur, which is required in large quantities to produce grain, needs to be more efficiently managed. The micronutrient determined to be the most interesting is copper because of its distribution to the grain (60 percent of plant copper is in the grain at the end of the season).
“This, of all micronutrients, is the only one that exhibits this pattern of remobilization where the plant pulls it from one tissue and puts it somewhere else. We don’t know if this means that we need to fertilize with copper, because the plants don’t need to accumulate much of it, but it is interesting,� he said. With these changes in the soybean crop, such as the greater emphasis now on nutrient availability in August and September, Bender said practices that supply nutrients right before the crop is planted and throughout the season really show promise to help producers.
would prefer to contract with a trusted adviser to do that work and simply subscribe to their service. If you desire to collect imagery for your operation, your FS Crop Specialist has access to tools and services, empowering you to be able to use this information for future managerial decisions. Have a good spring!
Updated soybean nutrient needs defined in U of I study
Organic checkoff proposal raises concerns The Organic Trade Association’s proposed checkoff marketing fund resulted in concerns from other industry trade groups and farmers who claim only larger organic businesses would benefit. The proposed program, which aims to promote the organic industry, would cost $30 million a year, mostly funded by farms that make $250,000 or more annually. Marketing projects would focus on specific sectors. Checkoff supporters say the industry needs to build a cohesive identity within the organic food sector, whose sales jumped 11 percent to $35 billion two years ago.
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Milk prices show some improvement
The Class III price for milk adjusted to 3.5 percent butterfat for the month of March was announced at $15.56 per hundredweight. This represents a 10-cent improvement over the previous month, and is nearly $8 less than a year ago. Illinois dairy farmers have been responding to these higher prices. Milk production is up again this year, and 2014 showed some modest gains. Illinois milk production has increased more than 3 percent during the last three years.
And ... they’re off!
The March 31 reports not only offer the first good insight into the crops to be planted, but they also kick off the beginning of the growing season for those crops. Their release always reminds me of the trip to the starting gate at the Kentucky Derby and the announcer’s initial call. And as usual, this year’s reports contained their share of surprises for soybeans and corn. This is the first time the trade has some “hard” data to guide its fundamental expectations for the year ahead. Until now, everyone has been working with their “best guess” at what the structure would look like, including USDA analysts. The soybean numbers may bring the biggest change in trade thinking. Not only were March 1 old-crop stocks slightly less than expected, but planting intentions should have put to rest the big acreage, big ending stocks and bearish price forecasts for now. The 84.6 million acre planting intentions were only 900,000 more than last year, and 1.3 million less than expected, as well as being well under the 3 to 4 million increase talked about all winter. Using a trend yield, production should be near 3.75 billion bushels. That’s 200 million less than this past year. Meanwhile, the 1.33 billion bushel March 1 stocks implied last year’s crop may have been overestimated by 25 to 30 million bushels. That should guide USDA to lower its old-crop ending stocks either side of 350 million bushels. The smaller old-crop stocks
and the smaller 2015 crop point to a new-crop ending stocks closer to 400 million bushels. That’s a lot lower than the 550 million (or higher) forecast by some this winter. Unless other things change considerably, or weather is a repeat of last year, it’s difficult to justify soybeans dropping under $9 for any length of time. For corn, the most surprising number might have been the 7.745 billion bushel March 1 stocks. Traders immediately assumed that should lead to a reduction in the old-crop feed/residual use for the year. Based on the recent relationship between first half of the marketing year feed/residual use and the year’s total, that’s an appropriate expectation. But recent years have been dominated by tight supplies. If one reverts to older, historical relationships, there’s reason not to expect a change from USDA. For the new crop, the 89.2 million planted acres, and a trend yield, project a crop near 13.4 billion bushels. Using a similar demand for next year, there’s potential for the newcrop ending stocks to drop to, or through, 1.5 billion bushels. That doesn’t warrant negative price expectations at this time and these prices. Wheat numbers were the least notable. Neither stocks nor plantings were far off expectations. Still, both imply ample supplies into next year. But the wheat market has become a weather market with the dry conditions in much of the Great Plains. Weather is already threatening to cut the hard red winter crop. If the pattern doesn’t shift, expect price expectations to become more optimistic. And that would help pull corn prices upward.
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Corn Strategy
ü2014 crop: Corn prices may have taken a temporary hit after the USDA reports, but there’s still no reason to think prices have moved out of the trading range that dominated the winter. We expect better selling opportunities ahead, but the reports may have delayed the market getting to expected pricing points. We still think basis contracts are the best tool at this time, leaving pricing open into summer. Hold the 2013 crop for expected long-term improvement. ü2015 crop: Even with this week’s break, technicals still look good, but it may take time to establish an uptrend. We see no reason to price new crop. Buy out-of-the money, newcrop call options to make sales against this spring/summer. vFundamentals: Even though March 1 stocks were larger than expected, the longterm fundamental structure still has some positive ramifications. Maybe a bigger nearterm risk to prices lies with corn exports. They are on pace, but need to improve to sustain potential to meet the USDA target.
Page 11 • Monday, April 6, 2015 • FarmWeek Cents per bu.
Soybean Strategy
ü2014 crop: Upside price potential may not be robust, but USDA all but eliminated the extreme negative expectations. South American supplies may cap rally potential unless something threatens our output. But until a large, new crop is secure, prices shouldn’t have any major downside risk. We still see somewhat higher prices in the short term. Hold off making sales. ü2015 crop: New-crop prices may start to take leadership, with price direction keying off new-crop potential. At this time, we don’t see a scenario to cause them to spiral sharply lower. We have no interest in pricing 2015 crop at these levels. vFundamentals: Even though supplies will still be more than adequate based on the new USDA forecasts, it’s now more difficult to build the case for overwhelmingly negative supplies. Brazilian exports are picking up, but are still more subdued than last year. Argentine harvest is starting to accelerate. Strikes in both
could slow the flow of soybeans into the world pipeline.
Wheat Strategy
ü2014 crop: Last week’s USDA report confirmed large, old-crop inventories, but acres and yield considerations have pushed new-crop futures into the lead. ü2015 crop: Patience on sales for 2015 is warranted, while futures attempt to turn up out of their 20-week cycle low. vFundamentals: Wheat took a back seat on report day and tumbled lower in sympathy with corn futures. USDA analysts pegged March 1
wheat stocks at 1.12 billion bushels, near trade estimates. We will see how the new stocks number fits into the balance sheet in the April 9 USDA update. A stronger dollar has weighed on exports, but sales remain on pace to hit the target. Weather worries are keeping premium in the market as dry conditions in the Southern Plains threaten winter crop yield. Weekly reporting on condition ratings will begin this week. Planting intentions for the spring crop were smaller than anticipated, further undermining new-crop production prospects.
TEAMWORK
FarmWeek • Page 12 • Monday, April 6, 2015
New face of Farm Bureau reflects all of its talents
S
erve local. What a great way to open the recent 2015 Women in Agriculture conference at Jumer’s Casino in Rock Island. Nancy Erickson of Altona urged the more than 200 women in attendance to look at their involvement with agriculture not only within their operations but also within their communities. Or in Twitter language: #servelocal. Farm Bureau needs your talent in your backyard, social media, in Washington, Springfield and DEANNE your counties BLOOMBERG and townships. We know you are already working in schools and churches. To serve locally also means to invest locally in your operation and community. While the Women in Agriculture conference name implies a gender focus, a more important note was the ‘subliminal message’ focused on reintroducing women back into broad, diverse — and critical — segments of agriculture. That’s not meant to alienate or segment our male counterparts, but rather to complement the entire team of agriculture. #Powerplayers. #Everyoneworkingtogether.
I’ve learned over the last five years as 12 county Farm Bureau managers worked side by side to partner with our Iowa counterparts in Extension and Farm Bureau that there is a demand for educational seminars for women — of all backgrounds. In four years, we’ve tripled conference attendance and brought forward a new era of volunteers. Our diverse attendees range from city girls to farmers’ daughters and from absentee lady landowners to professional agribusiness professionals. These women want information about the meat and potatoes of farming, but they also want an opportunity to network with other ladies. Some of you reading this may believe a women’s committee is re-emerging. Maybe so. Maybe not. Don’t focus on a creative name. The broader issue is not spending energy on creating a neat committee name or organizing a task force. What matters most is Farm Bureau using womens’ talent just as our organization is reigniting Young Leaders with record participation in the Young Leader 2015 state conference, and is exciting college students and growing Collegiate Farm Bureau. When the ‘80s hit, farm women found themselves thrust into working off the farm to help supplement, possibly save,
the family farm. Through the ‘90s, we found women working off the farm to gain health insurance benefits for them and their families. The Cowbelles and Porkettes drifted off the radar. Mothers and mothers-inlaw found themselves without a new “class of newbies” to help do the work. Agvocacy has always been around; it just wasn’t called that “back in the day.” Twenty five years later, we’ve got Agriculture in the Classroom coordinators, agvocates, bloggers, city moms, farm moms, Women Changing the Face of Agriculture, and on, and on. Those consumer dialogues are great, but we also need you, agriculture women, in front of people who are making the regulations and voting for the bills that impact your operation and your customer base. We need you sharing your personal stories to the people who write the laws. You farm with your husband, parents and in-laws. You work with farmers. Whatever
Have you ever said, “I had no idea,” when you learned more about something that you thought you already knew or understood? I’ve heard a lot of those comments lately as it relates to USDA Rural Development. In conversations with my colleagues around the state, I found they, too, have often heard, “I had no idea!” COLLEEN One comCALLAHAN ment in particular has been coming up frequently: “I had no idea Rural Development was a federal agency!” Perhaps that’s not surprising, considering how often people expect our state office to be in Springfield instead of Champaign.
It has made me realize the importance of expressing what this federal agency can do for the rural individuals, businesses and communities in the state of Illinois. Rural Development is one of 17 USDA federal agencies. It delivers 43 financial programs to each state through a state office that oversees multiple field offices, all staffed by federal USDA employees. In Illinois, the Rural Development State Office is located in Champaign, and the state is divided into four service areas. This is very important. It means people who live in your communities and counties, who go to your stores and schools, are the ones helping you access federal financial resources to strengthen your place in rural Illinois. • As a federal agency, Rural Development’s national loan
portfolio of $200 billion is larger than that of the World Bank at $152 billion. • As a federal agency, Illinois’ Rural Development loan portfolio is nearly $3.5 billion — that’s with a “B.” • As a federal agency, Rural Development can and does work with state, public and private agencies to leverage funding to complete needed community projects and to initiate and/or further community and economic development. • As a federal agency, Rural Development offers both direct and guaranteed loans. We can be the sole lender or we can partner with your local bank to guarantee the loan. • As a federal agency, Rural Development can finance fire trucks, storm sirens, hospitals, water and sewer systems; finance a home requiring no down pay-
Participants at the recent Women in Agriculture Conference enjoyed networking as well as gaining new information. (Photos by Cyndi Cook)
your connection to farming — we need you helping tell the story with facts. You are a mom, daughter, sister, grandmother, granddaughter — and most importantly — you believe farming and agriculture are a great way of life, and place to raise a family. Don’t be afraid to sign up for the next Leaders to Washington trip or maybe accept an offer to chair a local government entity. Just remember it’s
‘That’s Rural Development? I had no idea!’
ment; and finance energy efficiency projects. As a federal agency, the scope of projects that Rural Development can bring to rural Illinois is significant, powerful and often surprising. More surprising, however, may be the depth of understanding and personal relationships between our staff and our clients — because we’re all in this together in the state of Illinois! As often as I hear, “I had no idea,” I must confess that I once said those very same words myself — until six years ago when I began representing USDA Rural Development throughout Illinois! Now I say, “I’m with the federal government, and I’m here to help!” And guess what I hear in reply? Colleen Callahan serves as Illinois director for USDA Rural Development.
going to take all types of talent to push us into the next 50 years of farming. The face of farming has changed, and we’ve got great talent to show off. Be a part of the new face of Farm Bureau and serve locally.
DeAnne Bloomberg grew up with four brothers, serves as manager of the Rock Island County Farm Bureau, and helped coordinate and organize the Women in Agriculture conference.
Letter to the editor
Sorghum checkoff referendum addressed
Editor: Concerning the forthcoming vote on the sorghum referendum ... unless we have a refund provision, I recommend a “no” vote. Why does it seem that we farmers must pay the bills? HERBERT WODTKE Farina Editor’s note: The United Sorghum Checkoff Program (national) does not include a refund provision.