Farmweek aug 12 2013

McLean County Chamber of Commerce panelists put a face on immigration refor m issues. .....................................3

The Illinois State Fair g ot under way last week with several junior livestock grand champions named. ...........................................11

Farmland prices that skyrocketed in recent years have stalled and could fall back to earth in the months ahead. ..............................14

A service of

®

Unique idea feeds cattle instead of landfills Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, August 12, 2013

BY KAY SHIPMAN FarmWeek

Two sections Volume 41, No. 32

Periodicals: Time Valued

A herd of southern Illinois cows chewed sweet corn that hours earlier was sorted by St. Louis workers packaging fresh corn for grocery stores. That feed not only benefits cattle, it also benefits a produce company, a farmer –and the environment.

This win-win-win arrangement began a year ago with a phone call from an Irish farm boy turned produce executive to a county Farm Bureau manager.

Dominic Greene, vice president of operation for St. Louis-based United Fruit and Produce Co., knew a better use existed for tons of fresh produce waste his company regularly sent to a landfill.

“It’s discouraging when you know there’s a better place for it,” said Greene, as he stood beside a trailer filled with corn husks and bell peppers.

Greene’s ingenuity combined with county Farm Bureau leader networks blossomed into a unique relationship.

United Fruit and Produce regularly sorts tons of fresh produce waste that are trucked to Clinton County farms and fed to beef cattle.

St. Clair County Farm Bureau Manager Tom Jett remembered receiving Greene’s “call out of nowhere” last August.

Greene explained his company processed many kinds of fruits and vegetables that could be fed to livestock.

Jett, whose county doesn’t have many livestock farms, shared the information with Clinton County Farm Bureau Manager Gary Kennedy.

Kennedy raised the idea during a county Farm Bureau board meeting, and county Farm Bureau Director Cliff Schuette of St. Rose volunteered to meet with Greene and investigate. After concluding the idea was feasible, especially given droughtshortened feed supplies and high feed prices, Schuette contacted area cattlemen who might be interested and truck driver Bill Timmermann, who agreed to haul the first loads from the plant to the farms.

“It’s a real neat idea and has worked out,” Jett said.

Greene and the farmers patiently worked together. Greene’s employees were trained to separate edible produce waste from disposable gloves, aprons and other trash that they used to combine. The farmers learned to work with loads of produce that vary from season to season, and their cattle learned to eat a different feed.

“It was a challenge to say what the worth (of the produce) was to farmers; it’s only 15 percent dry matter,” Greene said. “We were able to find flexible partners who were willing to take the food stocks. Cliff and the guys have been patient.”

A produce feed analysis tested 88 percent to 92 percent moisture and 50 to 55 megacalories of net energy gain.

Clinton County cattleman Ryan Kampwerth buys about 90 percent of the produce waste for his 200-head cow/calf herd and 600 feeder calves.

Above: United Fruit and Produce Co. employees load a trailer with sorted produce waste, primarily sweet corn husks and tips, at the St. Louis processing plant last week. Below: Dominic Greene, right, United Fruit and Produce Co. vice president of operations, illustrates the types of fresh produce being trucked from his processing plant to Illinois farmers.

Looking on is Clinton County Farm Bureau leader Cliff Schuette who was instrumental in connecting the company with farmers. (Photos by Kay Shipman)

Fresh perspective: Immigration reform deemed crucial See Unique, page 2

BY MARTIN ROSS FarmWeek

Farmers, seasonal workers and community leaders gathered last week to feast on jamon, fresh local cantalupo and magdalena — or to Illinois producers like Sarah Frey-Talley, who rely on foreign-born labor, ham, cantaloupe and cupcakes.

Former U.S. Commerce Secretary Carlos Gutierrez — a Cuban-born immigrant — touted the need for congressional immigration reform at a town hall meeting at Frey

Farms’ Poseyville, Ind., fruit and vegetable processing and shipping facility.

Frey-Talley, who with her brothers built a southern Illinois melon/pumpkin operation into a nationwide wholesale enterprise, employs some 250 seasonal workers per year.

The Frey Farms forum was one of a series of meetings in what Gutierrez deemed “key districts” across the U.S., aimed at highlighting concerns among and encouraging congressional contacts by “the people who have a stake in

FarmWeek on the web: FarmWeekNow.com

immigration.”

In 2006, public calls against then-proposed immigration reforms “were running 100-to1,” Gutierrez said. Ag and other groups last week used Congress’ August recess to rally statewide support for a SenateHouse compromise aimed at bringing 11 million undocumented workers out of the shadows, offering new options for ag and other employers and bolstering border security.

“The reality is, the majority of Americans want immigration reform, but we’re just lis-

tening to the voice of extremes,” Gutierrez told FarmWeek.

“The Senate bill is a good start, but it’s not the best we can do. But at least they’ve done their job and sent something over to the House. I think the House can improve it, and I think the House holds the cards.”

Farming foundations Harvest labor is a “huge issue within the fresh produce industry,” said Frey-Talley, who See Fresh, page 3

Illinois Farm Bureau®on the web: www.ilfb.org

Quick Takes

OUTREACH

FarmWeek Page 2 Monday, August 12, 2013

BIOTECH COMPANIES START FOOD CONVERSATION — Consumers have a new resource available to ask tough questions and get answers about biotech seeds.

Launched last week, GMO Answers provides a public, online forum about biotech seed use and research data. The website was developed by members of The Council for Biotechnology Information, which includes BASF, Bayer CropScience, Dow AgroSciences LLC, DuPont, Monsanto Company and Syngenta.

“GMOs are a growing topic of discussion with a wide range of questions and emotions on the topic,” said Cathleen Enright, executive vice president of food and agriculture for the Biotechnology Industry Organization.

“Food is personal, so we want to open the door for personal discussions. We want people to join us and ask their tough questions. Be skeptical. Evaluate the information and decide for yourself. We look forward to an open conversation,” she said.

Supporting partners of the website {gmoanswers.com} include the American Farm Bureau Federation, American Seed Trade Association, American Soybean Association, National Corn Growers Association and the National Cotton Council.

AFBF BUYS FARM SHOWS — The American Farm Bureau Federation (AFBF) bought five farm shows and two agricultural publications from Cygnus Business Media last week.

The purchase includes IDEAg-branded farm shows – Minnesota Farmfest, Dakotafest, Amarillo Farm and Ranch Show, Northern Illinois Farm Show and the IDEAg Interconnectivity Conference. The business also publishes Feed & Grain Magazine and Case IH’s Farm Forum magazine.

“This acquisition is the union of very strong brands that are deeply rooted in agriculture,” said AFBF President Bob Stallman. “By joining the Farm Bureau family, these publications and events create additional opportunities for us to serve farmers, ranchers and the stakeholders looking to connect with them.”

The events and publications will operate as part of IDEAg Group, LLC, which is wholly owned by AFBF. All of the current managers and staff of the events and publications agreed to continue in their positions.

For more information about the IDEAg Group publications and events, visit {ideaggroup.com}.

ROADSIDE HAYING PERMITTED — Need some extra hay? The Illinois Department of Transportation (IDOT) provides permits to farmers who want to harvest roadside hay.

The program is administered by IDOT’s district offices for state highways within their jurisdiction. Interested farmers should contact their district IDOT office to determine whether roadside haying is permitted.

Applications can be viewed at {www.dot.il.gov/Forms/ OPER%201050.docx}. A list of district IDOT offices is available at {www.dot.state.il.us/idotmap.html}.

(ISSN0197-6680) Vol. 41 No. 32

August 12, 2013

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

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STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

USFRA survey: Consumers want more information about food

Consumers want information about the food they buy and will chose food with information over the same item without information, according to a U.S. Farmers & Ranchers Alliance (USFRA) survey.

“Consumers increasingly want more information about the food they are purchasing whether in the grocery store or in restaurants,” said Randy Krotz, USFRA executive director.

In late May, 1,019 consumers and food decision makers were surveyed about food information preferences and related issues.

The degree of importance placed on food information varied with consumers’ ages, according to the survey results.

Forty percent of respondents between the ages of 21 and 29 reported they would buy a product because more information was provided compared to a similar product without information.

Of the respondents who indicated they want information, 29 percent said they would trust farmers while 11 percent said they would trust food manufacturers and packagers. When asked what food information they want, only 34 percent of survey respondents provided specific information.

To gauge consumers’ preferences for types of information, survey respondents were asked if they were more likely to buy a beef steak labeled corn fed or a similar one with no information.

More responded they would like-

ly buy the one labeled corn fed.

When asked to compare similar steaks, one labeled corn fed and the other labeled grass fed, slightly more respondents said they would likely buy the one with the grass fed label.

Likewise, respondents reported they were more likely to buy fruit with a coded label that would allow them to learn where the fruit was grown.

“USFRA conducted research to find out what type of information consumers were seeking,” Krotz said. “Our research found that when there is a lack of information, consumers often perceive us as trying to hide something.

“By not providing information — or not being transparent

about where food comes from consumers are filling that void with their own information. And often times, it’s negative information,” he said. “USFRA is helping farmers and ranchers make meaningful connections with consumers and provide them with the information they want about their food. That’s why Illinois Farm Bureau’s support of USFRA is vital to the continued success of this movement.”

USFRA is comprised of more than 80 farmer- and rancher-led organizations, including the Illinois Farm Bureau, and agricultural partners working to have conversations with consumers who have questions about how food is grown.

State commodity groups elect district directors

New directors have been elected to three-year terms on the Illinois Corn Marketing Board, the Illinois Soybean Program Operating Board and the Illinois Sheep and Wool Marketing Board.

Corn board directors include: • District 3, Thomas Mueller, Taylor Ridge • District 6, Dirk Rice, Philo • District 9, Dan Cole, Plainville • District 12, Roger Sy, Newman • District 15, James Raben, Ridgway Soybean board directors are: • District 3, John Longley, Aledo • District 4, Sharon Covert, Tiskilwa • District 6, Robert Shaffer, El Paso • District 8, Dale Asher, Sutter • District 15, Daryl Cates, Columbia • District 18, William Raben, Ridgway Gene McGrew of Bushnell was elected to the sheep and wool board to represent District 3.

Unique

Continued from page 1 Kampwerth paid $300 for a 20-ton load and estimated his cattle eat 1.5 loads daily.

The cows are fed the fresh produce directly, while feeder calves weighing less than 900

pounds eat a mixture of chopped produce, modified distillers grain and ground corn.

“It’s (fresh produce) perfect for a cow with a calf,” Kampwerth said. “It’s a good feed especially through the summer. It’s really stretched my hay supply.”

Schuette, who occasionally feeds a load to grazing cattle, agreed the produce idea couldn’t have surfaced at a better time.

“When we started last year, we dealt with record feed costs.

Now feed costs are down, but it’s still profitable (to feed the Ryan Kampwerth produce),” Schuette said.

The environmental benefits are high points for everyone involved.

“I like that the semi load dumped here is one less that will go into a landfill,” Kampwerth said, as he stood beside his feed bunker.

Greene noted his company generates 360 tons of produce waste each month over the summer. “That’s 360 tons that won’t go to a landfill,” he added.

Considering how quickly Greene’s firm started sending produce to farms instead of landfills, Jett was thankful Greene called a county Ryan Kampwerth’s feeder calves munch chopped Farm Bureau. “I don’t think anybody else could fresh produce, wet gluten, modified distillers grain have pulled it together.”

and ground corn. (Photo by Kay Shipman)

LABOR GAINS

Panel puts human face to immigration debate

BY MARTIN ROSS FarmWeek

Working in an environment of personal uncertainty, public suspicion and political controversy can be dehumanizing.

The McLean County Chamber of Commerce might seem an unusual venue to attempt to put a human face on immigration reform. But a chamber panel representing Illinois business, family livestock production and the faith community last week emphasized the current congressional immigration debate is about both commerce and compassion.

“Ultimately, it is a question of human dignity,” Father Anthony Lee of Bloomington’s Holy Trinity Catholic Church told assembled business people.

McLean County pork producer Pat Bane stressed the need for the “patience” his seasonal workers bring to livestock production, while admitting “I don’t know if we could exist” without foreign-born labor.

But Bane was equally impressed by Caterpillar attorney Mark Peters’ insistence that the global equipment giant is “dependent on immigration reform,” and Lee’s “faith-based message that you’d think would appeal to almost anyone.” He argued “my people are a valuable asset” he seeks to nurture beyond the $15- to $17-perhour he pays them.

“I’ve had migrant workers for 10-plus years,” Bane told FarmWeek. “When they got started, they were a little apprehensive about finding a place to

live, so I provided the housing.

They have children who need to be enrolled in school, so we help them out there.

“I help them when I can, and they do a great job for me.

Some people get the idea that we’re a large farm and I stop by every week or so, whenever I feel like it. That’s not the case — we’re working with them every day.”

Lee previously served in Douglas, Ariz., a location he called “ground center” for the immigration debate and the catalyst for Arizona’s current tough immigration laws. The priest also worked with Latino livestock employees in the Kewanee-Geneseo area.

Because they may be “very slow to go to law enforcement” out of fear of arrest or deportation, undocumented workers often become victims of crime and abuse themselves, the priest said.

Lee pointed to an undocumented resident in his parish who was induced to seek police help in retrieving her U.S.-born children from her ex-husband in Mexico. The woman now “is on the pathway to becoming a documented person,” he said.

U.S. Chamber of Commerce Great Lakes Region Director Ben Taylor, who shared the panel with Bane and Lee, rejected the charge that pro-reform lawmakers are offering “amnesty” for illegal aliens. Given the general inability to identify some 11 million undocumented workers in the U.S., “we’re living in a de facto amnesty right

Pat Bane of Bane Family Pork Farm near Arrowsmith, right, addresses ag labor issues during a McLean County Chamber of Commerce immigration panel last week in Bloomington. Father Anthony Lee of Bloomington’s Holy Trinity Catholic Church, looks on. (Photo by Martin Ross)

now,” Taylor maintained.

“They’re not taking American workers’ jobs — they’re actually adding jobs,” Bane added. “If I keep my business going, that just adds more jobs down the line that we are willing to take.”

Fresh

IMMIGRATION

Page 3 Monday, August 12, 2013 FarmWeek

Above: Workers maintain Frey Farms’ Poseyville “cantaloupe line,” where melons are prepared for shipping. The Freys also distribute sweet corn and jack-o-lantern pumpkins of which the family is the nation’s largest producer.

Below: Southern Illinois produce producer/wholesaler Sarah Frey-Talley, center, chats with United Fresh Produce Association CEO Tom Stenzel, left, and former U.S. Commerce Secretary Carlos Gutierrez following an immigration town hall last week at Frey Farms’ Poseyville, Ind., processing and shipping facility. (Photos by Martin Ross)

Continued from page 1 fed nearly 300 workers and guests last week. For Don Ahrens, an Illinois Farm Bureau immigration “strike team” member whose family maintains operations in southern and northern Illinois, harvest labor needs begin about mid- to late-June and “pick up steam” with sweet corn, cucumber and cabbage harvest around July 20.

Further, Ahrens employs winter labor to grade, size and bag sweet corn seed for sale to outside customers. He seeks local workers for some temporary jobs, but he has found securing them increasingly difficult, and amid migrant worker shortages, is “running short” in northern operations.

“It’s becoming harder all the time to find enough help to get the job done,” Cobden orchardist Jeff Flamm told FarmWeek. He uses the federal H-2A visa program to secure some workers, but decries “the paperwork and red tape” and expense involved. Flamm recruits workers, but uses an agent to process H-2A documentation.

H-2A laborers can work only for a contracted employer. Although Flamm appreciates locking in a “committed” crew, he also sees the benefits if “guys could move around some” between regional harvests to meet added labor needs.

Some U.S. tech companies already have outsourced high-skilled research/development jobs to Canada “because Canada has its act together” on labor policy, said U.S. Chamber of Commerce Great Lakes Regional Director Ben Taylor at a McLean County Chamber of Commerce forum.

Frey-Talley noted an increased consumer demand for fresh fruits and vegetables, but warned availability of “a secure workforce” may determine whether they’re available “locally, regionally or nationally.” She noted increased outsourcing of U.S. specialty production to Mexico.

“Talk to your friends and neighbors,” United Fresh Produce Association CEO and town hall

co-host Tom Stenzel urged Frey Farms guests.

“Do they want local produce or not?”

The perfect and the possible Taylor suggests Congress could move an immigration package by year’s end. While the House is taking a piecemeal approach to addressing ag, high-skilled labor and other issues compared to the Senate’s comprehensive bill, “(House) leadership would probably not want to go to conference with the Senate with only one arrow in their quiver,” Taylor said.

Illinois Farm Bureau Associate National Legislative Director Ryan Whitehouse noted House decisions could hinge on the pro-reform coalition’s ability to counter “extreme rhetoric.” Farmers and businesses must call or e-mail congressmen to give them “the political power” they need to support generally positive reforms, Whitehouse said.

“Don’t let the ‘perfect’ be the enemy of the good,” Taylor stressed. Instead, Gutierrez believes skeptics can help the House further improve on Senate proposals.

Gutierrez notes stringent Senate border security measures and efforts to bring undocumented workers into the legal ranks of American taxpayers. Senate proposals such as those for a longterm, ag-exclusive worker “blue card” would “shrink the haystack” currently frustrating immigration and law enforcement officials, Taylor said.

However, Gutierrez sees Senate provisions for “the future (labor) flow” as “very inadequate” — especially quotas regulating the number of new visa-holding workers allowed to enter the U.S. each year. Current proposals allow for 15,000 annual construction visas (according to Gutierrez, the potential need in Chicago or Miami alone) and 110,000 initial ag visas.

“We need a million,” he cautioned. “So what are farms going to do? Hire workers illegally? Go out of business? Move their farm to Mexico?”

ENERGY

FarmWeek Page 4 Monday, August 12, 2013

Urbanchuk: RFS2 targets signal cellulosic realities

BY MARTIN ROSS FarmWeek

While some may see the U.S. Environmental Protection Agency (EPA) lowering its expectations, a major energy economist believes less means more for the now-germinating cellulosic ethanol industry.

Last week, EPA released its final biofuels use requirements for 2013 under the federal Renewable Fuel Standard (RFS2). The RFS2 sets annual motor biofuels blending targets with an ultimate goal of 33 billion gallons of nationwide ethanol, biodiesel and noncorn-based “advanced biofuels” use by 2022.

EPA trimmed an original 1 billion gallon 2013 RFS2 target for biomass/cellulosicbased ethanol use to 6 million gallons, but retained a 2.75 billion gallon overall advanced biofuels requirement, which includes cellulosics.

For 2013, the RFS2 total biofuels requirement (also including corn-based ethanol and biodiesel) is 16.55 billion gallons. National Renewable Fuels Association President Bob Dinneen argues that by setting “a very realistic, achievable” cellulosics target, EPA “has totally obliterated Big Oil’s myth that the RFS is inflexible and unworkable.”

THEY’RE HERE. . .

Energy sector analyst John Urbanchuk sees a variety of factors in cellulosic biofuels’ finally coming of age: • Feedstock diversity and reality. Where biofuels feedstock production once asked farmers to bet solely on unknown dedicated “energy crops” such as switchgrass or miscanthus, researchers have identified potential in commodity crop residues such as stover or wheat straw or more minor commercial crops such as sorghum.

Accordingly, Urbanchuk notes, EPA is continually eyeing new, more familiar candidates for acceptance as RFS2-compliant “advanced biofuels” feedstocks. Grain sorghum was recently approved. EPA now is accepting public comments on use of barley (approval may be months away) and reviewing applications for sweet sorghum and corn fiber.

That broadens the potential producers and regions that can capitalize on biofuels development, Urbanchuk said.

“There’s a real chicken-and-egg concern here,” he advised.

“There’s a lot of activity and research in advanced biofuels feedstocks, but if the requirement to use them isn’t there, the research and development is just going to stop.”

• Broad-based technologies. Where the enzymes necessary to break biomass down into fuel-convertible sugars once had to be tailored to individual crops and materials, companies today are developing ever more “robust” enzymes that attack a range of feedstocks and adopting technologies such as pyrolysis that can use heat and chemicals to convert nearly any material.

USDA Ag Research Service Eastern Regional Research Center is working heavily with barley and building a self-contained truck-mounted mobile pyrolysis unit for deployment into the field either this fall or next spring.

“You can use almost any biological product with it — you name it, and it can go in there,” Urbanchuk said.

• Reliable policy. The continued health of the cellulosic sector now depends on staying the course with long-term RFS2 goals, Urbanchuk said. While EPA defends the standard, petroleum interests along with oil and livestock state lawmakers continue to challenge RFS2 mandates.

“The seed’s been planted, and it’s now emerged and growing,” Urbanchuk stressed. “You don’t want to stomp on it. If Congress does something stupid, it’s really going to kill that industry off.” — Martin Ross

Aronia berry field day Aug. 28

The University of Illinois Extension of Kankakee County in collaboration with Coldbrook Farm will host a free aronia berry field day at Coldbrook Farm, 16952 E. 6000N Road, Momence.

The event will run from 9:30 a.m. to noon Aug. 28. Registration is required by Aug. 27.

The aronia berry is a native fruit with antioxidant properties.

The industry is developing in the Midwest.

“It’s a remarkable native North American fruit, which is diseaseresistant. It offers an easy transition for fruit growers who irrigate,” said James Theuri, a U of I local food systems and small farms educator.

Topics will include: suitability of aronia for Midwestern growers, profitability of aronia berry production and drip irrigation for aronia production. Coldbrook Farms sells its produce to Schnucks and Hy-Vee and other outlets in Illinois and Indiana. It also markets to wholesale buyers.

For more information, email aronia.us@att.net, jtheu50@illinois.edu, or go online to {coldbrookfarm.net}. To register, call the U of I Extension Kankakee County office at 815-933-8337.

Further, the agency’s action signals confidence that cellulosic biofuels are a new reality, independent energy consultant John Urbanchuk told FarmWeek.

In late July, Quad County Corn Processors broke ground for a new cellulosic “bolt-on” ethanol plant in Galva, Iowa, that will turn corn kernel fiber into ethanol. The plant is expected to produce 2 million gallons from fiber already available through its existing corn ethanol operation.

Meanwhile, POET-DSM Advanced Biofuels is expected to launch a 20 million-gallonper-year corn stover/cob ethanol facility at Emmetsburg

in early 2014, and Urbanchuk noted INEOS Bio and Texasbased KiOR already are producing “commercial quantities” of cellulosic ethanol in Florida and Mississippi, respectively.

“I think there’s a recognition on EPA’s part that keeping that billion-gallon target just flies in the face of reality,” Urbanchuk said. “But this does signal that they recognize that (cellulosic production) is coming on.

“The real issue now is going to be, how far and how fast is this going to grow? For the last 25 years, cellulosic has been ‘five years away.’ It is now here. Granted, it’s in small quantities, but it’s com-

mercial quantities.”

EPA set a 1.28 billion target for biodiesel use and required 13.8 billion gallons of predominantly corn-based “conventional” ethanol use for 2013. The RFS2 currently caps ultimate corn ethanol mandates at 15 billion gallons.

Big data and small grasses are helping scientists assess which new crops might help energize future transportation.

St. Louis nonprofit Danforth Plant Science Center is eyeing a variety of candidates for the next stage in biofuels development. They include sugar cane and tall grasses such as switchgrass and miscanthus on the ethanol side, and oil-producing camelina and microbial algae on the biodiesel side.

“It’s clear that plants are going to be the source of our energy in the future,” Jan Jaworski, principal investigator with the center’s Enterprise Institute for Renewable Fuels (EIRF). “That’s going to happen even in our lifetime.”

Jaworski stressed the facility is “a plant science center without a field.” However, the center collaborates with the University of Illinois and the University of Missouri to translate field studies into viable fuels.

U of I “rain shelters” — covered fields — enable researchers to simulate drought conditions, while another facility can adjust carbon dioxide levels, thus helping Danforth scientists document “how plants respond to various environments,” Jaworski related.

The next step lies in “accelerating translation” — more quickly assessing the potential of individual candidate species.

For example, Jaworski said slow-growing tall grasses generally are “not well understood.” The St. Louis center thus is raising smaller, fastergrowing grasses such as Brachypodium and Setaria viridis (also known as green foxtail) in the greenhouse.

“They’re very similar geneti-

cally as well as biochemically to the larger grasses,” Jaworski noted.

At the same time, computer “bioinformatics” gather and process millions of plant data points. The scientist stressed “there are a lot of things going in on a plant at all times” at the genetic level, but old-school eyeball inspection of plants provides perhaps “one data point a day.”

In an effort to generate new data, the center is installing a robotic system to analyze plants. Further, greenhouse camera surveillance helps

researchers translate leaf color into a measurement of plant photosynthesis — a key factor in biomass yields.

The Danforth Center tapped $80 million in U.S. Department of Energy biofuels research grants alone last year. Jaworski deems the federal Renewable Fuel Standard (see accompanying story) “essential” in driving continued support for bioenergy development.

“The Department of Energy essentially has a mandate for expanding fuels,” he told FarmWeek. — Martin Ross

‘It (cellulosic ethanol) is now here.’

— John Urbanchuk Energy analyst

Danforth Center scientists assess future energy crops

Brachypodium, a short grass, thrives at the Danforth Plant Science Center, simulating the genetics and traits of taller, slower-growing plants such as switchgrass. (Photo by Martin Ross)

AG & THE ECONOMY

Page 5 Monday, August 12, 2013 FarmWeek

Lawmakers: Tax reform should foster, not hobble, growth

BY MARTIN ROSS FarmWeek

Congress can embrace simplicity without being simple-minded about tax policy and the economy, U.S. Rep. Bill Foster maintains.

As lawmakers prepare for fall debate over fiscal and tax issues, the Batavia Democrat emphasizes the value of properly applied tax incentives in helping grow the economy, particularly in tougher times.

At the same time, the House Financial Services Committee member notes, “I am a big fan of simplification.” He believes it’s time to weed through the federal tax code and identify policies and provisions that truly nurture growth.

“If you look at the thousands of pages of tax code, a lot of them have been inserted by business special interests for one purpose or another — often by a single member of Congress for a single industry in his or her district,” Foster told FarmWeek. “This is not healthy governing.

“What (some lawmakers) are talking about is a clean slate, a blank piece of paper where every special provision of the tax code would have to be discussed and evaluated for its merits. I think you could make a good economic case for things like the expensing of large pieces of farm equipment, because if you get this equipment purchased early, it gets used and that lowers the overall cost of agriculture.”

Farm Bureau supports maintaining the current $500,000 Section 179 small business expensing limitation and $2 million annual acquisition limit, as well as continued bonus depreciation for capital purchases.

Also on the list are expensing of ag conservation costs; deduction of dairy and breeding cattle production, fertilizer and soil conditioner costs; and depreciation of single-purpose ag structures over shorter lives.

Though Congress has made permanent a $5 million individual/$10 million-percouple estate tax exemption, some lawmakers continue to

press the need to go even further in addressing the “death tax” and its impact on farm succession.

Winfield Republican Rep. Randy Hultgren argues the estate tax amounts to “triple or quadruple taxation” for some farms and small businesses. “We have a system that penalizes productivity,” Hultgren said.

With the House mulling immigration and waterways legislation, final farm bill passage, and debt ceiling and related fiscal issues, Illinois Farm Bureau National Legislative Director Adam Nielsen is pleased Congress — particularly the House Ways and Means Committee — is “still discussing” tax reform.

But “it’s very difficult to see where it fits into the rest of this year’s congressional calendar,” Nielsen conceded.

“There are deep philosophical differences between the House and Senate that have to be resolved if we’re going to see tax simplification and reform in the near future,” he noted.

to be introduced during the 2013-14 school year.

According to program professor Chuck Young, the

have moved offshore.

The college has purchased nearly $280,000 in high-tech equipment for the curriculum, including an ethanol simulator that will enable students to run and tweak efficiencies in a virtually typical dry grind ethanol plant.

The program signals growing interest in a renewable energy sector that according to the U.S. Labor Department provides about 11,000 jobs and is expected to generate 3,700 more over the next decade.

Young suggests a graduate of his program could earn $26 an hour or $54,000 per year.

The National Corn-to-

Biofuels training opps offer second chances

Biofuels are helping reenergize Midwest employment, and educators, researchers and policymakers are working to fine-tune opportunities for Illinoisans seeking a new start.

A growing bioenergy sector has raised prospects for students and displaced manufacturing workers or returning veterans still reeling from the 2008 economic downturn.

For example, Galesburg’s Carl Sandburg College has announced a new two-year associate in applied science (AAS) degree in biofuels manufacturing technology

FarmWeekNow.com

Check out Carl Sandburg C o l l e g e ’s n e w t w o - y e a r biofuels associate degree at FarmWeekNow.com.

61 credit-hour degree is the state’s first to fully integrate classroom biofuels education and hands-on lab training current positions require.

Young stressed the program is focused in part on “adult learners” whose jobs may

A DAY IN THE COUNTRY

Ethanol Research Center (NCERC) at Southern Illinois University-Edwardsville continues to train five to seven “interns” per year in biofuels research and production.

“Nearly 93 percent of the folks who’ve gone through some kind of training at our center are gainfully employed in the biofuels, specialty chemical or refining industries,” NCERC Director John Caupert told FarmWeek.

“In recent years, we’ve been more selective in the candidates that can apply and qualify for the internship program. But we’re focusing now on taking a step backwards with our workforce training program, opening things up, seeing what kind of training we can provide that everyone

in the general public would be able to participate in.”

Caupert cites two major biofuels tracks: an “analyst/laboratory skill set” emphasizing math and chemistry and operations workforce training applicable to manufacturing workers with “good general knowledge of mechanization.”

Caupert supports Taylorville Republican U.S. Rep. Rodney Davis’ “Opportunity Knocks” Act, which would enable displaced workers to earn job certification or an associate’s degree such as Carl Sandburg’s without having to lose or be forced to repay unemployment.

“It’s really an incentive for people who need that training to go out and receive that training,” he maintained. — Martin Ross

Experts raise issues at label hearing

Children enjoy pony rides at the second Sangamon County Farm Bureau A Day in the Country event.

More than 600 people visited the Beaty Farm near Rochester, talking with farmers about pesticide and antibiotic use, playing with farm animals and climbing on farm equipment. (Photo by Ashley Beutke, Sangamon County Farm Bureau assistant manager)

At a state Senate subcommittee hearing in Carbondale last week, experts raised concerns about the potential impact of a proposal requiring labels on some foods containing crops that were raised through biotechnology.

Members of the Senate Subcommittee on Food Labeling heard testimony from Tamara Nelsen, Illinois Farm Bureau senior director of commodities; Jeff Adkisson, Grain and Feed Association of Illinois executive vice president; Dennis Thompson, Illinois Crop Improvement Association chief executive officer; and Tom Welge, vice president of technical sales for Gilster-Mary Lee. IFB has been working with a coalition of agricultural organizations, business groups and food manufacturing and marketing organizations to develop expert panels to testify at the hearings. The coalition is offering information on why the proposal is not in the best interest of Illinois farmers or the state’s food industry.

The subcommittee’s third and final hearing will be Sept. 17 in the Michael Bilandic Building, Chicago. — Kay Shipman

FarmWeek Page 6 Monday, August 12, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had good growing conditions here in northern Illinois again last week.

There was some rain on Monday night (Aug. 5), but it was spotty, as we only had 0.3 of an inch and 1.25 in totals reported around Rockford. Lots of fungicide spraying on soybeans and third cutting of hay were the main jobs. We still don’t have many insects in the beans, and we hope it stays that way. Have a good week.

Mark Kerber, Chatsworth, Livingston County: A rain event caught a few farms last week.

Crops are in grain fill and need water for this. Insect pressure is minimal, but re-planted corn needs attention, as rootworm beetles love these silks. Farmers are thinking late harvest with these cool temperatures. Machinery is being traded at a rapid rate, while interest rates are still low. We traded for a draper head — it must be made out of part gold.

Leroy Getz, Savanna, Carroll County: Beautiful, cool days for the fairs have been great for people. We had 0.6 of an inch of nice rain on Monday (Aug. 5). Crops continue to look excellent. Some fungicides are still being flown on. Straw baling and haymaking continue in the area. Pastures are holding up great for this summer. Growing degree units now total 1,928. This is 400 less than last year.

Brian Schaumburg, Chenoa, McLean County: Back in early June, it was thought that given ideal conditions, the corn crop could be good. At the time, the odds of that happening did not look too promising. Yet with another couple of inches of rain, this could be a record corn crop despite the poor start. Populations and depth of kernel are outstanding. Bean yields will be more variable and harvest is still a long way off. Corn, $6.04, fall, $4.43; soybeans, $13.38, fall, $11.68; wheat, $6.08.

Ryan Frieders, Waterman, DeKalb County: During the last week, we finished spraying all of our crops. Corn pollination is complete except for an area damaged by an early storm. Soybeans are setting pods and maturing. Crop progress looks to be three weeks behind where we were at this time last year.

Larry Hummel, Dixon, Lee County: Monday’s (Aug. 5) 0.4 of an inch of rain was a welcome sight in an area that I have been contending as a garden spot of Illinois. But after getting only 1.75 inches in July, we are running low on moisture. Lighter soils are taking it on the chin, even with the cooler temperatures. Heavy soils are hanging in there and show some great potential. If we don’t get some more rain, or Mother Nature turns the heat up, yields on that ground will start to wither away also.

Ken Reinhardt, Seaton, Mercer County: We missed some good rain chances last week. The drought monitor is showing western Illinois as dry. Quite a turnaround from spring. Cool temperatures are masking any moisture stress so far. Japanese beetles have slowed down with the temperatures.

Ron Moore, Roseville, Warren County: We did not receive any rain last week. The temperatures are back to normal and the crops look very good even though they are late. There are just a few bean fields left to spray. You can tell that the corn ears are filling. My cattle seem to like corn instead of dry grass. We have had to check fences more frequently now. Our work now will be getting ready to cut corn silage and prepare for fall harvest.

Tim Green, Wyoming, Stark County: It was a little cool, but a pleasant week. We need a little heat to push the corn along. A few people have corn sold for the end of September and are worried if they are going to get it there. The crop is coming, but it is coming pretty slow. Finishing up some fungicide spraying in beans and corn. People are scouting for some aphids that are coming in from the north.

Ron Haase, Gilman, Iroquois County: We finally received a nice rain Friday night (Aug. 2) of 1.0 to 1.6 inches of rain. That was more than we received for the whole month of July. That helped our late corn, as it was entering pollination. We finished spraying fungicide and insecticide on our corn Aug. 6.

There are a few fields of soybeans that have been sprayed in our area since then.

Corn development ranges from silking, up to the dough stage. Most of the corn in our area is at R3. Soybean development ranges from full bloom, up to beginning seed stage. The price decline continues.

The local closing bids for Aug. 8 were nearby corn, $5.71; new-crop corn, $4.39; nearby soybeans, $13.29; new-crop soybeans, $11.66.

Steve Ayers, Champaign, Champaign County: Even though we had 40 to 60 percent rain chances last week, the rain gauge remained dry. Our eastern district topsoil moisture is 2 percent very short, 25 percent short, 71 percent adequate and 2 percent surplus. Our district has corn 98 percent silked with 36 percent dough stage, and soybeans are 86 percent blooming and 53 percent setting pods. I walked beans this week (please explain that process to the youngsters) to cut resistant water hemp. Think rain, and see you at the state fair.

Wilfred Dittmer, Quincy, Adams County: Hi again from one of the driest spots in our county where we have only received a few drops of rain since our last report. Two miles north of us picked up about 2 inches. Corn does look good, though, and has much more potential than last year. Some bean fields still have escapes that the combines are going to have to digest, but plants are growing.

Please be careful as the work continues whatever it may be and wherever you may be. Have a good week.

Tom Ritter, Blue Mound, Macon County: Showers on Wednesday evening in the area totaled 0.5 of an inch to 1 inch of rain, but it was not a large area.

The area was not hurting for moisture, but the rain definitely kept the pump primed. We are sitting in excellent shape on moisture. The crop continues to progress, but probably at a little slower rate with the cooler temperatures. Corn, for the most part, has excellent color and soybeans are also continuing to grow, but are way behind in height. Early-planted corn has definitely brown silked, but the very last planted in early June is still silking and pollinating.

Overall, crop prospects for corn look very good. Soybeans are hard to determine.

Definitely short and the majority of those beans were planted in June. Overall, farmers seem optimistic. Harvest guesses for corn in this area tend to be in the last half of September. Definitely two to three weeks behind a year ago.

Todd Easton, Charleston, Coles County: The skies have been busy for the last couple of weeks over Coles County fields where fungicide applications seem to be covering a lot of ground. The county fair concluded last week giving me time to get back between the corn rows with some agronomists. What we found all over is a change for the bad in the cornfields as denitrification has hit hard after the big rains a couple of weeks ago. I hate to say it, but the top of the corn yields may have been knocked off just like that. It sounds like the phenomenon is across most fields in the area. Across the fencerow, soybeans are growing in a slow and steady fashion. My mid-May-planted beans are in the R3 to R4 stage with blooms and pod starts covering the plants. Yield estimates will be starting in a couple of weeks. I can’t wait to see what we find, but I do know it will be much better than last year.

Carrie Winkelmann, Tallula, Menard County: We received 0.35 of an inch of rain last week at the house, although reports from the neighbors varied as high as 1 inch. A little more rain would really help finish out the crop. Planes were still in the area spraying fungicide on soybeans. Crops look good all around, although haying has been a struggle this year. We have had a bumper crop of green beans and canned 108 quarts, and the blackberries have been producing like crazy. Quite a difference from last year when everything was dead at this point, and people were very close to starting harvest.

Jimmy Ayers, New City, Sangamon County: This past week we didn’t receive any rain at our place. Corn seems to be responding well. Heavy dews in the mornings. A little bit of disease showing up in the corn. Beans have taken off and responded fairly well and are growing well. The Illinois State Fair started Thursday night with the Twilight Parade. If you get a chance, run over to Springfield to partake in the activities. Get your equipment ready and think safety for fall.

Doug Uphoff, Shelbyville, Shelby County: Not much to write about. Hot and humid is good for beans. It’s also good for disease spreading in corn, but my agronomist says don’t waste your money at this stage in corn. We are not showing enough disease to warrant applying at prices we are going to receive for corn, even what was sold for $6-plus. Mowing roadsides and spraying weeds on roadsides is about all that’s going on other than getting equipment ready for harvest. Have a safe week. Enjoy your family before the big harvest.

David Schaal, St. Peter, Fayette County: It was a warm and humid week here. We did not receive any precipitation until Thursday evening (Aug. 8) when showers came through the area leaving 0.75 of an inch in my gauge.

It was not that we were hurting for moisture, but it was a welcome rain.

Lawn mowers are still getting a pretty good workout. Crops still looking pretty good. No pest problems to report. There are some fungicide applications going on. The soybean crop is still all over the place from filling pods and setting pods to not even blooming yet. Have a good week.

Jeff Guilander, Jerseyville, Jersey County: Scattered heavy rain and cool temperatures make this summer almost as memorable as last year, albeit for different reasons. The mid-June-planted corn even looks good much to everyone’s surprise. There looks to be good potential out there. The million dollar question is how much.

Dan Meinhart, Montrose, Jasper County: Light showers moved through the area Thursday afternoon and evening (Aug. 8) leaving a couple tenths. Temperatures for the week were mild. Activities included post-emergence spraying on beans, mowing waterways and road ditches, hauling grain, repairing machinery, attending fairs and going to field days. Have a safe week.

Dave Hankammer, Millstadt, St. Clair County: The first full week of August was another mild one for the summer season.

Daytime temperatures reached the mid-80s. Despite a couple of cloudy days with potential of significant rain, we received 0.1 to 0.2 of an inch of rain. The corn crop continues to look good since it had little stress from the weather. Although there isn’t a lack of moisture in the soil, a good soaking rain would help with the grain development.

The early-planted soybeans are reaching about knee to waist high and are setting blossoms, while the late-planted and double-crop soybeans have reached a height of 8 to 10 inches. Development of this crop seemed to have slowed down as the temperatures remain cooler than average and daylight is notably decreasing. Soil moisture isn’t a concern, but a shower of rain would be welcome.

Local grain bids are corn, $4.73; soybeans, $13.05; wheat $6.24. Have a good week.

Page 7 Monday, August 12, 2013 FarmWeek

CROPWATCHERS Kevin Raber, Browns, Wabash County: Locally, good growing conditions continue. As I sprayed my early beans with insecticide and fungicide, I found drowned out and stunted areas in almost all of my fields. I plan on spraying my doublecrop beans for weeds this week. I’m guessing I will find the same conditions in those fields also.

Randy Anderson, Galatia, Saline County Crops look good from the road, but I’ve been hearing reports from some people that have been out in their corn, and it’s not as good as it looks. Some ears are tipping back 1 to 2 inches.

Some think it’s just been too cool.

So, the board of trade needs to reevaluate some of its crop predictions. Early frost is being talked about. A lot of beans would be in trouble if that happens.

Dean Shields, Murphysboro, Jackson County: It was a wet week with showers and thunderstorms. We received up to 2 inches of rain. The corn crop looks like it is pretty well made, and it’s all out of the brown silks. I have heard of some people who had corn bloom real early before we got the bad weather. They are going to try to pick some corn next week. Beans look good and are getting really tall. Milo has good heads on it, and you can’t see the stubble in the wheat field beans. Now we need some sunshine. The peach, apple and grape growers in our southern counties are reporting a good crop year. Even the fruit is doing well this time. Everybody take care.

Multi-viscosity oil and shear stability

Viscosity is a physical property of a fluid defined as its resistance to flow. It’s highly dependent upon temperature.

Lubricant viscosity is closely related to its ability to reduce friction. Lubricants containTom Drew ing a Viscosity Index Improver (VII) are labeled as multi-grades or multi-viscosity oils. An example is a S A E 1 5 W- 4 0 w h e r e t h e “15W” represents the winter grade perfor mance and the “40” represents the high temperature performance.

VIIs are polymers added to oils to improve their viscositytemperature characteristics, producing multi-grade formulations in the case of engine oils.

One differentiating characteristic of a quality engine lubricant is its ability to “stay

BY TOM DREW

in grade” during its useful life.

A lubricant can thin (lose viscosity) and allow excessive wear if its VII fails. This is commonly referred to as “shearing,” referring to the shearing of long chain molecules, and results in temporary and permanent viscosity loss.

VIIs help maintain viscosity of oil at operating temperature, but under high shear conditions distort, align or even break, and provide less viscosity than under low shear conditions. Engines provide a wide range of shearing conditions.

All multi-grade oils experience some viscosity loss due to mechanical shearing of the VII in the oil. Advances in engine cam drive gear set design are creating a more severe shear environment.

Low contact ratio spur gears have been replaced with high contact ratio gear sets with smaller teeth on the same pitch diameter resulting in a more aggressive shear device.

Viscosity retention allows for longer oil drain intervals,

greater wear protection and enhanced low temperature pumpability over the life of the engine oil. Improved viscometrics can also provide greater fuel economy.

Once an engine starts, the oil must be ready to flow. Low temperature fluidity, which is important over an engine oil’s life, can change dramatically as an oil ages. This change is the result of the oil being subjected to many in-service stresses.

Premium oils, such as FS Suprex Gold ESP, are formulated with one of the most shear stable VIIs in the industry.

It maintains viscosity significantly above the API CJ-4 minimum requirement. It also protects against high temperature oxidation that can thicken oil and utilizes unique soot dispersing technology to reduce abrasive wear, saving you money in the long run.

Tom Drew is GROWMARK’s lubricants marketing manager. His email addr ess is tdr ew@gr owmark.com.

Ken Taake, Ullin, Pulaski County: We had a good week moisture-wise here in deep southern Illinois. We received 1.3 inches of rain scattered over the last five days. Temperatures have been in the low- to mid-80s with high humidity and pretty cloudy. Some farmers are starting to be concerned about disease pressure on the crops. I’m just thankful for the rain. Having a green yard in the middle of August is a good thing. Please be careful this week.

Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com

IMAGINATIONS RUN WILD AT FAIR

Three budding farmers manage their Mini Acres Farm as part of ImAGination Acres at the recent Marshall-Putnam County Fair.

Originated by Marshall-Putnam County Farm Bureau Manager Tiffany Moodie, the new fair addition featured activity stations for children, including a pizzeria, veterinary clinic, corn loading facility and Farmer Nenne’s Barnyard Theater. (Photo by Tiffany Moodie)

Invest an Acre lets farmers feed their own communities

BY MARTIN ROSS FarmWeek

Illinois farmers this fall can celebrate a good harvest by feeding their neighbors. A pair of major ag industry players are even helping pick up the tab.

Monsanto and Decaturbased Archer Daniels Midland Co. again are joining in the second Invest an Acre campaign enabling producers to donate an acre or more of their harvest at the elevator, with proceeds going to food pantries in area communities.

Monsanto is matching farmer donations.

“These dollars are not going to the big cities,” Monsanto ag sustainability director S t e p h a n i e Re g a g n o n t o l d FarmWeek. “They are feeding the rural hungry right there in (contributing farmers’) communities.

“We’re really excited by this,

‘These dollars are not going to the big cities, they are feeding the rural hungry right there in (contributing farmers’) communities.’

— Stephanie Regagnon Monsanto ag sustainablity director

because not many people are talking about rural American hunger.”

The national campaign Feeding America is overseeing distribution of donations, and

the program is coordinated by the Decatur-based nonprofit Howard G. Buffett Foundation.

According to the Buffett Foundation, 100 percent of each contribution will benefit participating food banks. On average, each bushel of corn can help provide 18 meals and a bushel of soybeans can help secure up to 40 meals, the foundation estimates.

Further, the donation is tax deductible. Farm donors will

receive a receipt for their charitable contribution.

Despite ADM’s involvement, farmers can donate grain at any elevator, Regagnon stressed.

According to Feeding America, 15.4 percent of rural households — an estimated 3 million households nationwide — are “food insecure.” Roughly 50 percent of people in families with a single female head of household living in rural areas were poor in 2011, compared with 35 percent in suburban areas.

Pumpkin field day slated Sept. 6 near Hamilton

Growers will see and learn about new pumpkin and gourd varieties at a University of Illinois and Iowa State University Extension Pumpkin Field Day from 10 a.m. to 2 p.m. Sept. 6 on the Rick McVeigh farm near Hamilton in Hancock County. Registration is requested.

McVeigh has grown pumpkins for more than 25 years and planted more

than 50 varieties this year.

Extension specialists from both universities will discuss management a n d i d en ti fi ca ti o n o f p um p ki n d i seases, insects, fertility and weed control. Seed and input suppliers will discuss their products. Lunch will be provided.

The far m is located at 956 East

County Road 1800, Hamilton.

From the east edg e of Hamilton, travel east on Route 136 for a half m i l e t o t h e C o n n a b l e R o a d . Tu r n n o r t h a n d t r ave l 4 . 5 m i l e s t o 1 8 0 0 North, turn west and travel a half mile to the farm.

Register at {webs.extension.uiuc.edu/registration/?RegistrationID=8690}.

ENVIRONMENT

FarmWeek Page 8 Monday, August 12, 2013

Former EPA ag liaison urges holistic regulatory approach

BY MARTIN ROSS AND MIKE ORSO FarmWeek

One farmer, one farm and a patchwork of regulations and narrowly focused government agencies and departments.

That’s how former U.S. Environmental Protection Agency (EPA) ag liaison Larry Elworth sees the current regulatory environment for agriculture.

EPA has focused on individual components of ag stewardship compliance — nutrient management, farm “dust,” pesticide permitting — without looking at the big picture, Elworth said.

Producers need to demonstrate they’re “taking (their) whole farm seriously” — implementing a suite of practices and strategies designed to protect resources, he argued.

Highland Park Republican U.S. Sen. Mark Kirk and bipartisan colleagues hope to offer farmers a heightened voice via the Review EPA’s

Language on Agriculture and Thoroughly Engage with the Farm Act (RELATE).

RELATE would require USDA review of EPA-proposed rules that may affect agriculture and EPA solicitation of farmer input.

‘Regulatory actions need to look at that whole farm.’

— Larry Elworth Former EPA ag liaison

“Regulatory actions need to look at that whole farm, not focus on one piece or another,” Elworth maintained. “A farmer has a farm — a farmer doesn’t have his air piece and his water piece and his pesticide piece. All these people from various agencies come in and (each) regulate one thing, and a farmer’s now talked to 10 people.”

House Ag Committee member Rodney Davis, a Taylorville Republican, was able to include RELATE-type language in the House’s Regulations from the Executive in Need of Scrutiny Act (REINS), which passed 232-183.

Elworth offered observations on the current ag regulatory environment: • Climate and greenhouse gases. Because President Obama has emphasized the need for new climate change policy, “any rule on climate change EPA promulgates will be a priority as well,” Elworth told FarmWeek. He stressed the agency is focusing at least initially on emissions from coal-fired power plants, potentially impacting Midwest energy costs.

Any new rule will require extensive, likely lengthy public comment. Congress could pass spending language aimed at blocking EPA actions or invoke the Congressional Review Act, authorizing Senate scrutiny of EPA proposals, he said.

Larry Elworth, left, former U.S. Environmental Protection Agency agriculture liaison, discusses environmental regulations affecting farmers with Kevin Johnson, Illinois Fertilizer and Chemical Association director of government and industry relations, and Chris Hausman, Illinois Farm Bureau (IFB) District 12 director. Elworth spoke at the recent IFB Commodities Conference. (Photo by Mike Orso)

• Pesticides and permits.

New EPA Clean Water Act pesticide permit requirements for applications on or near water spurred congressional efforts to rein in regulators on the grounds pesticide use is already regulated under the Federal Insecticide, Fungicide and Rodenticide Act. Elworth noted aquatic pesticide requirements were imposed by the courts, and said EPA “was not seeking to look for additional permits.”

Land-based crop applications are “very clearly regulated,” and without a court mandate, EPA’s unlikely to expand permits, he said.

• Livestock and the law.

This spring, a federal court rejected EPA efforts to dis-

miss a court case brought by a West Virginia poultry farmer ordered to obtain a Clean Water Act discharge permit for farmyard stormwater runoff.

Despite EPA’s recent withdrawal of the order, the court ruled the case should proceed to clarify whether discharge permits are required for “ordinary” farmyard runoff.

Given EPA’s withdrawal and failure to pursue any related “designation rule” for poultry or livestock stormwater runoff, Elworth sees little reason for concern about expansion of standards for concentrated animal feeding operations “in the near term.”

“Of course, that could change,” he said.

EQIP available to convert fescue pastures, hay fields

Farmers with potential fescue toxicity problems may apply for Environmental Quality Incentives Program (EQIP) assistance through the Natural Resources Conservation Service (NRCS).

EQIP, a voluntary program, offers technical guidance and funding to fix resource problems.

Brett Roberts, NRCS state conservation agronomist, said the potential problem of fescue toxicity exists anywhere tall fescue grows, especially in the southern third of the state.

“Through EQIP, we can assist farmers in converting pastures and hay fields that are predominantly tall fescue” to non-toxic grasses, Roberts said.

Late summer-early fall is a good time to spray glyphosate to kill tall fescue, according to Roberts.

He recommended interested farmers start planning now and be committed because tall fescue is a tenacious perennial.

“It will take a growing season or two to see the benefit because tall fescue is pretty competitive,” Roberts added.

After the fescue is killed, another cool-season grass or fescue bred not to produce toxins must be established.

For more information, contact your local NRCS office. –Kay Shipman

PRODUCTION

Page 9 Monday, August 12, 2013 FarmWeek

Comprehensive program for U of I Agronomy Day

BY KAY SHIPMAN FarmWeek

Farmers will hear the latest information from their favorite University of Illinois researchers and find a few surprises Aug. 15 at the U of I Agronomy Day. The event starts at 7 a.m. on the Crop Sciences Research and Education Center located off St. Mary’s Road, Urbana.

“We strive to have a comprehensive program on crop production, disease and fieldbased research,” Bob Dunker, agronomist and center superintendent, told FarmWeek.

Four, hour-long field tours will start at 7 a.m. and be repeated about every 30 minutes until noon.

Dunker said one of this year’s exciting research topics is NitroGenes, which will be presented

by Stephen Moose, U of I professor of maize functional genomics. NitroGenes have the potential to increase corn yields with less nitrogen use.

The genes have proven to affect traits involved in improving corn nitrogen use efficiency.

Bt resistance in western corn rootworm beetles and management advice will be discussed at two tour stops.

Help for problem plants will be offered at the Illinois Plant Clinic display in the exhibit tent. Clinic specialists will provide a free diagnosis to visitors who bring a sample.

Visitors are asked to bring only one plant each.

At noon, John Groce, head Illini men’s basketball coach, will share his experiences.

Groce was a former 4-H member who had experience with hogs. He will be joined by speakers from the U of I College of Agricultural, Consumer and Environmental Sciences.

“We’re praying for good weather,” Dunker said, noting last year’s event was cut short by a severe thunderstorm with lightning.

Separate topics will be offered on each of the four field tours.

Tour A topics are: NitroGenes, soybean disease and pest resistance, fusarium head blight of wheat and corn production.

Tour B topics are: western corn rootworm management and Bt resistance, cover crop suppression of soybean diseases, monitoring Bt resistance in western corn rootworms, strategies to reduce nutrient loss and ag economics.

Tour C topics are: vegetable soybean production, soybean cyst nematode virulence, plant density tolerance and palmer amaranth.

Tour D topics are: phosphorus and potassium for notill and no-strip corn and soybeans, pushing corn yields, optimizing nutrient management in a corn-soybean rotation and secrets of soybean success.

For complete information, go to the Agronomy Day website at {agronomyday.cropsci. illinois.edu}.

Young leaders donate to food pantry

Livingston County Farm Bureau Young Leaders recently donated $800 to the Livingston County Community Food Pantry. The money was collected at a recent Dairy Breakfast on the Farm event.

SCRAMBLE BENEFITS YOUNG LEADERS

A team of golfers tees off during the recent 5th Wayne County Young Leader Golf Scramble last week. More than 50 golfers helped raise $2,500 to support the annual collegiate scholarship program, the Progressive Agriculture Safety Day program and participation in Young Leader activities. (Photo by Doug Anderson, Wayne County Farm Bureau manager)

FUTURE POTATO CHIPS HARVESTED

Top: Potatoes from a 68-acre field near Bath in Mason County flow into a waiting truck for delivery to Neumiller-Sproule Company. The Savanna-based business harvests potatoes from late June through September in Mason County. Right: Workers at the Bath plant sort potatoes by size and remove field debris. Excellent yields mean abundant supplies for potato chips, potato salad and canned potatoes. (Photos by Ken Kashian)

EMERGING ISSUES

FarmWeek Page 10 Monday, August 12, 2013

Newly adopted lawmaker tours Jackson County

State Rep. Kathleen Willis, D-Northlake, made one of her first visits to modern family farms when she toured Jackson County recently.

Willis, who was elected in 2012, joined Illinois Farm Bureau’s Adopt-A-Legislator program earlier this year and was matched with the Jackson County Farm Bureau.

Several local farmers met the legislator and her mother, Patricia Bugielski, at the county Farm Bureau office before traveling to the Southern Illinois University Farms Research and Education Center. The group visited the farm’s beef, swine and equine areas.

Willis learned about livestock care and scientific advancements in reproductive technologies. Her tour guides discussed various research projects related to animal nutrition, housing and production methods.

A Carbondale grain farm was the next stop.

Eric Shields and the representative talked about modern crop production and the advanced techBY CHRISTINA NOURIE

nology used on farms.

Willis was amazed at the size and cost of a tractor and combine. The farmers raised the importance of the state sales tax exemption on agricultural inputs.

Over lunch, the group discussed such issues as biotechnology, farmer image and pension reform.

At the Mileur Family Orchards near Murphysboro, the representative toured apple and peach orchards, and heard about the growing season and the challenges of running an orchard. The Mileurs sell their fruit at various farmers markets. Willis received a basket of freshly picked peaches.

The representative said she enjoyed her tour and appreciated the rare opportunity to visit southern Illinois farms with her mother.

She hopes to return again next year.

Willis plans to host her adopted farmers State Rep. Kathleen Willis, right, D-Chicago, looks over freshly picked for a tour of her district in the Chicago sub- peaches at the Mileur Family Orchards, Murphysboro, during her reurbs.

Christina Nourie is the Illinois Farm Bureau northeast legislative coordinator.

cent tour of Jackson County. Left to right are Jackson County Farm Bureau Manager Lindsay McQueen, Gaylyn Boyer of Mileur Orchards and Willis’ mother, Patricia Bugielski. (Photo by Christina Nourie, IFB northeast legislative coordinator)

QUICK, QUIET, CONVENIENT

Specialty crop acreage growth predicted for 2014

BY CHRIS ANDERSON FarmWeek

Models 757Q, 657Q and 557Q feature an exclusive pushbutton-controlled unloading door for ultimate convenience.

Models 757, 657 and 557 Grain Train wagons feature an exclusive patentpending, dual-position door wheel for effortless door opening from either side.

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Solid price premiums combined with increasing demand for specialty crops could prompt Illinois farmers to expand 2014 acreage devoted to white, waxy and organic corn as well as dark hilum soybeans. “I’m going to need 30 percent more acreage next year of white and yellow waxy corn to meet demand,� said Curt Haynes, president of Specialty Grains Inc. in Gibson City. “We’ll need 10 percent more acres for nongenetically modified soybeans.�

Haynes joined Lynn Clarkson, president of Clarkson Grain Company Inc., at the recent Illinois Farm Bureau Commodities Conference to discuss specialty grain market opportunities.

The marketers noted that U.S. and world consumers demand a growing number of specialty products, ranging from nonbiotech grains to organic crops. “Illinois is a key state in the identity-preserved grain world. We ship by container, truck, rail, barge, ship and airplane,� said Clarkson of Cerro Gordo. “People don’t want to buy just any calorie; they want to buy the calories they want, and they have the means to pay for them.�

Haynes noted that nonbiotech corn can boost farmer income by $120 per acre compared to traditional corn. He said specialty grain yields can equal or best traditional grain yields.

Ron Bork of Piper City knows the value of growing such crops as nonRoundup waxy corn. Premium prices have boosted his bottom line, eliminating a need to rent or buy more acreage. “It takes more management, but we have the labor and on-farm storage,� said Bork. “You have to take recordkeeping seriously. We have to remember to clean out the sprayer, and we vacuum bins before harvest. It can be a little more expensive for weed control, but it’s still good for the bottom line.�

Haynes noted that farmers have to make sure they can properly handle specialty grains that require segregation. Clarkson said storage infrastructure in Illinois favors specialty grain production. Seventy percent of grain storage stands on farms with the rest provided by commercial storage, he noted. “My clients are your clients. Know their needs.

Develop an infrastructure for food purity by segregating grain, cleaning your combine and other equipment. See if this opportunity fits with your farm.

The demand is definitely there,� said Clarkson.

COMMODITIES

Page 11 Monday, August 12, 2013 FarmWeek

Large crop expectations priced into U.S. markets

STATE FAIR JUNIOR GRAND CHAMPIONS

BY DANIEL GRANT FarmWeek

Crop yields, as always, are expected to be quite variable once combines start running this fall.

Variable planting dates, soil compaction from a wet spring and recent bouts of flooding/dryness depending on the location are just a few of the factors that will cause yield swings this season.

But, overall, total crop production is expected to be large. In fact, many analysts believe the U.S. corn crop will be the largest on record.

USDA today will release its latest estimates of the corn and soybean crops. Illinois Farm Bureau members will take part in the lock-up and subsequent release of the report at USDA during the IFB Marketers to Washington tour.

“Our firm recognizes the problems we have (with crops at some locations), but we still think the crop is very big at this point,” said Ken Smithmier, crop analyst with The Hightower Report. “Going into the report, our estimate is a 160.1-bushel (national corn) yield.”

USDA last month projected crop production will total nearly 14 billion bushels for corn — 858 million bushels larger than the record set in 2009-10 — and 3.42 billion bushels for beans.

AgriVisor yield models suggested USDA this week could project national yield averages of 158.5 bushels per acre for corn and 43.1 bushels per acre for beans.

“I think we’ll see a lot of (yield) diversity geographically, but overall I think we’ll be back near the trend of 160 bushels per acre (for corn),” said Darrel Good, University of Illinois Extension economist. “If realized, it would be a record crop. It would exceed demand.”

Much of the downward market action in recent weeks is the result of traders factoring in large production estimates into the market, according to Smithmier.

But if USDA maintains record-large crop estimates this week, the markets could go lower.

“We’re looking for bottoming action in this market,” Smithmier said. “In our opinion (the trade) has been pricing in a 2 billion bushel (corn) carryout the past two weeks.”

Analysts also expect USDA to reduce its harvested acres estimates due to prevented plantings and crop losses. Good suggested corn plantings could decline as much as 2 million acres from USDA’s previous estimate of 97.4 million acres.

“There’s likely to be a planted acreage revision,” Smithmier said. “But I think USDA will take baby steps doing that.”

A Farm Futures survey of farmers estimated harvested acres of corn could total 89.1 million acres. The survey also showed farmers expect to harvest 1 percent fewer soybean acres than last year.

“Our survey shows a little smaller corn crop, but 13.5 billion bushels remains a big crop to move through a system with reduced demand,” said Paul Burgener, Farm Futures market analyst.

The wildcard through the end of the season is the possibility of an early frost that could have a big impact on late-planted crops.

“There will be opportunities for this market to rally from here,” Smithmier added. “There’s certainly a lot of weather left to play out.”

Young Leaders shape the future

Getting involved today with Young Leaders, men and women 18 to 35, builds skills and provides you the experience you need to become an industry leader tomorrow.

Young Leader programs provide networking opportunities beyond your county and state with the AFBF Young Farmers & Ranchers Achievement Award, Excellence in Agriculture Award and Discussion Meet.

Three national winners this year will get their choice of a 2014 Chevrolet Silverado or 2014 GMC Sierra, courtesy of

General Motors, and a paid registration to the 2014 YF&R Leadership Conference in Virginia Beach, Virginia.

Nine national finalists receive a Case IH Farmall tractor, courtesy of Case IH, and a $2,500 cash prize and $500 in STIHL merchandise, courtesy of STIHL. For more information on the Young Leader program and how you can get involved, contact your county Farm Bureau.

Caleb Thomas of Cloverdale, Ind., carefully studies a class of Illinois State Fair junior show rabbits.

Thomas awarded 15-year-old Serena Schafer of Brighton the junior grand champion rabbit meat pen title. Other junior grand champions named last week included Dylan Hummel of Cabery with the meat goat wether and Bailey Hunt of Sycamore with the poultry meat trio. Watch for more state fair coverage in next week’s edition of FarmWeek. (Photo by Ken Kashian)

State honors rural doctor at Illinois State Fair

Dr. Russell Dohner, who has practiced medicine for 58 years in rural western Illinois, served as the grand marshal of the Illinois State Fair Twilight Parade last Thursday. The Illinois State Fair continues through Aug. 18.

Dohner, 88, treated many patients in Rushville and charged only $5 for an office visit to ensure everyone could afford care.

“No one embodies the State Fair theme of ‘Where Illinois Comes Together’ better than Dr. Dohner,” said Gov. Pat Quinn.

Dohner, a World War II veteran, is the only doctor that many Rushville residents have ever known. He still insists on personally seeing every patient who comes to his office each day.

WEATHER

FarmWeek Page 12 Monday, August 12, 2013

August could continue to feel more like mid-September

BY DANIEL GRANT FarmWeek

Mild weather conditions, which in recent weeks felt more like mid-September than early-August, could continue at least through the end of this week.

Dan Hicks, consultant/meteorologist with FreeseNotis Weather, last week didn’t see any drastic changes to the recent weather pattern.

“It looks like the coolerthan-normal trend will continue at least through the end of (this) week,” Hicks told FarmWeek. “There are no signs of any big heat (wave) returning to the Midwest.”

The average temperature in the state the first week of this month was between 2 to 5 degrees below normal, according to the Midwestern Regional Climate Center.

Rainfall totals, on the the other hand, varied significantly depending on location.

Topsoil moisture in a quarter of the state last week was rated short or very short. The driest portions of the state

were in the northwest and southwest regions.

Meanwhile, 73 percent of topsoil moisture last week was rated adequate with 2 percent surplus. Most of the surplus moisture was located in the southeast portion of the state.

“Rainfall has been really variable,” Hicks said. “There are places that had aboveaverage rainfall and probably an equally large area with below-normal rainfall.”

Hicks’ forecast for fall

called for slightly below-normal temperatures in the southern two-thirds of the state and slightly below-normal rainfall.

The mild conditions in

recent weeks were good for crop pollination but also likely slowed crop development, according to Hicks.

Last week, 30 percent of

the corn crop was in the dough stage statewide compared to the five-year average of 49 percent. Less than half of the soybean crop (39 percent) was setting pods last week, which was 11 points behind average.

“The potential for an early, hard freeze is a great concern,” the meteorologist said.

Hicks last week said there were no early indicators pointing toward either an early or late first fall freeze.

Farmers can get the latest scoop on the wheat industry this month in southern Illinois.

The Illinois Wheat Association (IWA) on Aug. 20 will host its annual Illinois Wheat Forum at the Knights of Columbus Hall in Highland (Madison County).

Registration for the conference will begin at 8 a.m. The program will be held from 9 a.m. to 2:45 p.m. Lunch is included.

“The Illinois Wheat Forum

offers producers a chance to learn more about nearly every facet of production,” said Diane Handley, IWA executive director. “From crop insurance to a 2014 growing season outlook, producers will take home a wealth of information that will help them increase the productivity and profitability of their operations.”

Speakers at the Wheat Forum will discuss the profits and risks of wheat rotations,

key components of farm profitability and market dynamics, Illinois farmland values, crop insurance, an update on the farm bill and information about 2013 wheat production research in the state.

Forum participants also will have an opportunity to tour a number of exhibits featuring

seed companies, millers, elevators, crop protection services and other industries.

For more information visit the IWA website {illinoiswheat.org} or call Diane Handley at 309-557-3662. The Illinois Wheat Forum is made possible through the support of the Illinois Farm Bureau.

‘There are no signs of any big heat (wave) returning to the Midwest.’

— Dan Hicks meteorologist

Illinois Wheat Forum slated for Aug. 20

FarmWeek

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(LINE ADS)

Wednesday at 10 a.m.

COMMERCIAL DISPLAY ADS (BORDERED ADS) (Including but not limited to: livestock, auctions, equipment)

Monday at 4:30 p.m.

N-04W

FROM THE COUNTIES

Page 13 Monday, August 12, 2013 FarmWeek

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ROWN — Far m Bureau and COUNTRY Financial will sponsor a customer appreciation open house from 4 to 7 p.m. Aug. 22 at the Mount Sterling American Legion Hall. Call the Far m Bureau office at 773-2634 or the COUNTRY Financial office at 773-3591 for more infor mation.

UREAU — The Young Leaders Committee farm labor pool listing is complete. The list of residents interested in full or part-time agriculturalrelated labor is available at the Farm Bureau office.

Call the Farm Bureau office for more information.

• Far m Bureau will sponsor a planning meeting for the Princeton FFA Alumni chapter at 6:30 p.m. Thursday at the Far m Bureau office.

LARK — Far m Bureau will host a picnic at 5:30 p.m. Aug. 19 at Mill Creek Park. Call the Far m Bureau office for reser vations.

LAY — Farm Bureau will sponsor a market

outlook meeting at 6:30 p.m.

Aug. 19 at the Farm Bureau building. Kim Holsapple, South Central FS grain market manager, will be the speaker. For reservations call 665-3300 or email ccfbmanager@gmail.com by noon on Friday.

ASPER — Far m Bureau will host a family appreciation picnic at 3 p.m. Saturday at Peterson Park in Newton. Call the Far m Bureau office for a complete listing of events and to register.

AWRENCE — Far m Bureau will cosponsor a charted bus trip to the Far m Progress Show in Decatur leaving at 6 a.m.

Aug. 27 from Shopko in Mount Car mel. Cost is $30 for members and $35 for nonmembers. Call the Far m Bureau office at 943-2610 to register or for more infor mation.

EE — The District 4 meeting will be held at 6 p.m. Aug. 19 at the Mendota Civic Center.

Philip Nelson, Illinois Far m Bureau president, will be the speaker. Reser vation

Auction Calendar

biddersandbuyers.com/immke Fri., Aug. 23 and Sat., Aug. 24. 9:30 a.m. both days. Consignment Auc. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Aug. 24. 10:30 a.m. Greene Co. Land Auc. Terry and Melissa Hutton, GREENFIELD, IL. Moss Auctioneers. www.auctionzip.com ~ id #21727 Sat., Aug. 24. 10 a.m. Public Auction.

BEMENT, IL. Central IL Auctions. www.topaucitons24-7.com or auctionzip.com ~ id#12596 Sat., Aug. 24. 1 p.m. Schuyler Co. Land Auc. Tim and Suzette McCoy, RUSHVILLE, IL. Sullivan Auctioneers. www.sullivanauctioneers.com Sat., Aug. 24. 9 a.m. Con. Auc. LAWRENCEVILLE, IL. Max Groff, Auctioneer.

Sat., Aug. 24. 9 a.m. Pre-Harvest Con. Auc. LELAND, IL. Mike Espe, Chris Wegener, Joe Wegener and Mike Peterson, Auctioneers. www.espeauctions.com Sat., Aug. 24. 11 a.m. Real estate, machinery and misc. Charles Edwin Pearce, JR., FLORA, IL. Carson Auction & Realty Co. www.carsonauctionandrealty.com Wed., Aug. 28. 10:30 a.m. Lee Co. Land Auc. Clarence O. Svela Trust, ASHTON, IL. Lenny Bryson, Auctioneer. www.lennybrysonauctioneer.com Fri., Aug. 30. 6 p.m. Farmland Auc. Helen Taylor Est., BRIMFIELD, IL. Sullivan & Son Auction, LLC. www.sullivanson.com Fri., Aug. 30. 6 p.m. Farmland.

Reichneker and Guingrich, BRIMFIELD, IL. Sullivan & Son Auction. www.sullivansonauction.com Wed., Sept. 4. 10 a.m. LaSalle Co. Farmland Auc. State Bank of Graymont, KERNAN, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc.com Wed., Sept. 4. 10 a.m. Land Auc. John Moore Est. Krile Auction Service. www.auctionzip.com Thurs., Sept. 5. 7 p.m. Farmland Auc. Heirs of Orval Friedrich, NEW ATHENS, IL. Riechmann Auc. Service. www.riechmannauction.com Thurs., Sept. 5. 10 a.m. Henry Co. Land Auc. ANNAWAN, IL. Hertz Real Estate Services. www.hertz.ag Mon., Sept. 9. 10 a.m. Tazewell Co. Farmland Auc. Doris M. Hymbaugh Trust, GREEN VALLEY, IL. Nehmelman Auction Co. topauctions247.com/nehmelman or auctionzip.com

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Wed, Aug. 14. 10 a.m. Estate Auction.

Kevin Furtney Estate, FISHER, IL. Bill Kruse, Auctioneer. billkruse.net Wed., Aug. 14 and Thurs. Aug. 15. 9 a.m. Lg. Annual Fall Machinery Con. Auc. Sullivan & Son Auction. www.sullivansonauction.com Fri., Aug. 16. 10 a.m. McDonough Co. Land Auc. MACOMB, IL. Sullivan Auctioneers. www.sullivanauctioneers.com Fri., Aug. 16. and Sat., Aug. 17. 8:30 a.m. both days. Fall Consignment Sale, ANNAWAN, IL. Hatzer and Nordstrom Eq. Co. www.hatzernordstromauctin.com Sat, Aug. 17. 10 a.m. Kendall Co. Farmland. Marcella Vickery-Lyons, YORKVILLE, IL. Brummel Realty, LLC and Rediger Auction Service. www.brummelrealty.com or www.rickrediger.com Sat., Aug. 17. 10 a.m. Farm machinery. Eugene Saar Est. and Dorothy Saar, FREEPORT, IL. Jim Calhoun, Auctioneer. www.calhounauction.com Sat., Aug. 17. 10 a.m. Jackson Co. Land Auc. MURPHYSBORO, IL. buyafarm.com Sat., Aug. 17. 9 a.m. Lg. Multi-Farmer Absolute Auc. OKAWVILLE, IL. Riechmann Auction Service. www.riechmannauction.com Mon., Aug. 19. 10 a.m. Iroquois Co. Farmland. Marian L. Laurent Trust, ST. ANNE, IL. Decker Real Estate and Auction Co. www.deckercompany.net Tues., Aug. 20. 10 a.m. Farmland Auc. Edward Dickwisch Est., CARTHAGE, IL. Sullivan & Son Auction LLC. www.sullivanson.com Tues., Aug. 20. Pre-Fall Machinery Con. Auc. DANA, IL. Terry Wilkey Auction Service. www.terrywilkey.com Tues., Aug. 20. 11:30 a.m. Farmland Auc. Don and Phyllis Housewright, CARTHAGE, IL. Sullivan & Son Auction LLC. www.sullivanson.com Wed., Aug. 21. 10 a.m. Farmland Auc. Harry Bennett Jr. Est., LAHARPE, IL. Sullivan & Son Auc., LLC. www.sullivanson.com Thurs., Aug. 22. 10 a.m. Piatt Co. Land Auc. MONTICELLO, IL. Hertz Real Estate Services. www.hertz.ag Thurs., Aug. 22. 10 a.m. Adams Co. Farmland. Lucille Wollbrink Est., MENDON, IL. Sullivan & Son Auction. www.sullivansonauction.com Fri., Aug. 23. 10 a.m. Farm machinery.

David and Margaret Gibb, PIPER CITY, IL. Immke and Bradley Auction Service.

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deadline is Wednesday.

ACON — Far m Bureau will sponsor a shred day from 7 to 9 a.m. Friday in the Far m Bureau parking lot. A canned good donation to benefit an area food pantry is required. Call the Far m Bureau office at 877-2436 for more infor mation.

EORIA — The Marketing Committee will sponsor a bus trip to the Half Century of Progress Show in Rantoul from 6:30 a.m. to 6 p.m.

Aug. 23. Cost is $25 for members and $40 for nonmembers.

• The Marketing Committee will sponsor a bus trip to the Far m Progress Show in Decatur from 6:30 a.m. to 6 p.m. Aug. 28.

Cost is $25 for members and $40 for nonmembers.

Call the Far m Bureau office at 686-7070 for reser vations or for more infor mation.

• Calhoun County peach orders may be picked up on Thursday in the Far m Bureau auditorium.

P

Power

Efficiency

• Far m Bureau will sponsor a grassroots picnic at 6 p.m. Aug. 20 at the Far m Bureau Park. Reser vation deadline is Wednesday.

• Far m Bureau will sponsor a photo contest for members or dependents.

Photos must be taken in Peoria County to be eligible. Entry deadline is Aug. 30.

ICHLAND — Far m Bureau will co-sponsor a dinner meeting with Illinois Congressmen John Shimkus, R-Collinsville; Dick Durbin, D-Springfield; Mark Kirk, R-Highland Park, and their aides at 6 p.m. Wednesday at the West Salem Community Building. Call the Far m Bureau office for reser vations or more infor mation.

• Young Leader Committee members will sponsor a har vest hustle halfmarathon and 5K race on Oct. 19 at Musgrove Park in Olney. Proceeds will benefit the Young Leader scholarship program. Register online at {richlandcountyfar mbureau.com}.

R

Protection

Call the Far m Bureau office or a committee member for more infor mation.

AYNE — Farm Bureau will sponsor an antique tractor drive from 9 a.m. to 3 p.m. Sept. 2. Cost is $20 per tractor if registered

by Thursday. After Thursday, cost is $30. Register at {waynecfb.com}.

HITE — Far m Bureau will cosponsor a county crop tour beginning at 7 a.m. Aug. 21 at the Far m Bureau building. Call the Far m Bureau office at 382-8512 to register or for more infor mation. Data from the crop tour will be posted at {whitecfb.com}.

W W

“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

PROFITABILITY

FarmWeek Page 14 Monday, August 12, 2013

Illinois farmland prices flatten out after steep climb

BY DANIEL GRANT FarmWeek

Farmland prices that skyrocketed to new heights in recent years have stalled and could fall back to earth in the months ahead.

Dale Aupperle, president of the Heartland Ag Group in Forsyth, reported farmland prices have flattened out in his area so far this year.

This followed gains in farmland values of 20 percent or more in recent years.

“Since the end of the year, we have not seen a further increase (in farmland prices),” Aupperle said at the recent Illinois Farm Bureau Commodities Conference. “The market pretty much has gone sideways.”

A telltale sign of the chang-

Fertilizer prices edge lower

Farmers could get a break on fertilizer purchases this fall and next spring.

Fertilizer prices last week continued to trend lower due to increased production and the expectation of more potash on the market from Russia.

The average statewide price of anhydrous ammonia ($793 per ton), diammonium phosphate (DAP, $558), and potash ($541) last week declined by an average of 5 percent compared to prices in mid-July, according to the Illinois Production Cost Report.

The downward movement in prices holds the promise that fertilizer costs in 2014 will be lower than those in recent years, according to Gary Schnitkey, University of Illinois Extension farm management specialist.

Fertilizer prices peaked in 2008 when the cost of anhydrous ammonia knifed through the $1,200-per-ton barrier.

This year, fertilizer prices as of Aug. 1 were below the yearly average thus far by 9 percent Gary Schnitkey for anhydrous ammonia and DAP, and by 5 percent for potash.

The two primary reasons for the decline in fertilizer prices are the expansion of nitrogen fertilizer manufacturing capacity and the breakup of Russian phosphate company Uralkali, according to Schnitkey.

The breakup of the Russian cartel is expected to flood the world market with potash.

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10-12 lbs.

40 lbs.

Range Per Head $32.26-$48.00 NA

Weighted Ave. Price $40.13 NA

This Week Last Week 83,716 106,727 *Eastern Corn Belt prices picked up at seller’s farm Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $95.44 $91.79 $3.65 $70.63 $67.92 $2.70

USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers

This week $122.67 NA

Prev. week $119.00 $119.00

Change $3.67 NA

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 $150.24 $149.49 $0.75

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-160 lbs. for 106.48-138 $/cwt. (wtd. ave. 114.76); 189-191 lbs. for $114/cwt. (wtd. ave. $112/cwt.)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8/1/2013 1.4 25.5 15.1 7/25/2013 1.4 25.5 11.5 Last year 12.9 21.2 20.4 Season total 1299.4 211.9 642.8 Previous season total 1295.4 168.2 1429.9 USDA projected total 1330 1075 700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

ing trend occurred at some recent land auctions that didn’t meet price objectives.

“Auctions are a price discovery mechanism,” Aupperle said. “The auction process right now is telling me to be careful. It’s struggling.”

Land prices still are high, well above five figures per acre in many cases, but the run-up in the market appears to be losing momentum.

The downturn in the land market is due in large part to lower crop prices that have tempered the outlook for farm income. Higher capital gains taxes also dampened landowners’ desire to sell farmland this year, according to Aupperle.

Meanwhile, record-high prices of $13,000 to $14,000plus per acre chased many investors to the sidelines.

“I think it’s time to be cautious when we talk about farmland values,” Aupperle said.

“Net farm income is going to drive land values. I don’t think it (farm income) will be horrible this year, but I think it will be less than we’re used to.”

Aupperle, however, does not anticipate a major crash in the farmland market. The market is not in a bubble, he noted.

“The value of farmland is the earnings,” Aupperle said.

“I think there will be bushels this year. That will dampen the

Terry Barr, right, senior director of industry research at CoBank, discusses the ag economy with Philip Nelson, center, Illinois Farm Bureau President, and Rich Guebert Jr., left, IFB Vice President, during the IFB Commodities Conference in Normal. Barr at the event predicted farm margins could tighten and advised farmers to reassess land ownership and rental agreements. (Photo by Daniel Grant)

effect of the farmland market crashing down.”

The farmland market could be more vulnerable next year, though, if crop prices continue to sink and crop insurance guarantees shrink in 2014.

Terry Barr, senior director of industry research at CoBank, told attendees of the Commodities Conference he foresees rising interest rates by 2014 or 2015, which could negatively impact the farm economy and land prices as well.

“We’re going to a see a transition (in the markets),” Barr said. “Investments in equipment, land ownership and

rental agreements will need to be reassessed.”

Steve Myers, of Busey Farm Management in LeRoy, recommended farmers and landowners use year-to-year leases for farmland and keep leases as flexible as possible to adjust for possible changes in farm economics.

“My biggest fear is if there is a setback in the farm economy, what are those folks (locked into high, multi-year cash rental agreements) going to do,” Myers said. “If it is about economics, the time to have that conversation (with landlords) is sooner than later.”

EU market will remain open to high-quality U.S. beef

U.S. cattle producers will get at least another two years to sell more high-quality beef to the European Union (EU).

USDA this month announced the U.S. and EU plan to extend a memorandum of understanding that allows the sale of high-quality U.S. beef from nonhormone treated cattle at zero duty to Europe.

The agreement, originally signed in 2009, will be extended two years to 2015.

“Since 2009, this agreement has greatly expanded opportunities for U.S. beef producers to export high-quality products to the European Union,” said Ag Secretary Tom Vilsack. “By working together with our EU partners to extend this agreement, we have maintained access to a key market for beef products.”

Sales of U.S. beef to the EU increased from 16,000 tons in 2009 to 45,000 tons last year, according to John Brook, U.S. Meat Export Federation regional director of Europe, Russia and the Middle East.

“We built a $200 million business in four years,” Brook said recently during the Illinois Farm Bureau EU Animal Care Study Tour. “It really is a success.”

American beef quality remains the key to success of U.S. beef sales to the EU.

U.S. exports of red meat in June were up 5.5 percent from the same time last year. Beef sales led the surge as U.S. beef exports in June climbed 12.2 percent compared to last year. The increase in beef exports was driven by a resurgence in sales to Japan where beef shipments were up 64 percent from a year ago, according to the CME Group Daily Livestock Report.

About two-thirds of beef produced in the EU is derived from dairy or crossbred dairy cattle.

“U.S. beef is of superior quality than the beef here,” Bob Flach, ag specialist at the U.S. Embassy in The Netherlands, told IFB members during the EU tour. “There’s not enough beef in the EU. That’s why prices are so high here.”

The U.S. likely will have more competition, though, from Australia and Uruguay to fill the EU beef quota, Brook noted.

Elsewhere, the U.S. this month won a long-standing case at the World Trade Organization (WTO) on behalf of American chicken producers.

The WTO ruled China’s imposition of higher duties on American broiler products is unjustified under international rules. China placed higher duties on American poultry products due to its claim that corn and soybean subsidies give American broiler producers a production advantage.

“WTO members must use trade remedies strictly in accordance with their commitments,” said U.S. Trade Representative Michael Froman. “We hope this win will discourage further violations that hurt American exports.”

China is expected to appeal the ruling. — Daniel Grant

PROFITABILITY

Page 15 Monday, August 12, 2013 FarmWeek

CASH STRATEGIST

Corn exports face stiff competition

The corn market is ending a marketing year in which it had export competition from feed wheat as well as large supplies coming out of Brazil. For the first time, the decline in U.S. export demand dropped us to second place among the world’s corn exporters, with Brazil becoming the largest.

Corn export business in the marketing year ahead should be better than last year. Lower prices always tend to invigorate demand. Still, it’s not going to be “a piece of cake” in the export market this year, especially at the beginning.

Given the changing price relationships, corn shouldn’t have to compete with wheat as much as it has during the last 12 to 15 months. But, the supply of corn outside of the U.S. is going to be larger, as well as our supply.

The good crops of corn and other coarse grains outside the U.S. may be especially problematic to U.S. corn export demand in the early part of the marketing year.

On the accompanying graphic, you can see the surge in Brazilian exports that resulted because of their large second-crop corn last year.

USDA is expecting Brazil to

ship 22 million metric tons (mmt) when this marketing year wraps up. That is 5 mmt more than the prior year.

In the coming year, USDA is only forecasting exports to reach 18 mmt, but that’s based on a 72 mmt crop. Brazil just estimated this year’s crop would hit 80 mmt, allowing exports to potentially hit 26 mmt if all the extra tons are exported. And like last year, those exports will be “front end” loaded because of their lack of storage.

The same can be said of Russia and the Ukraine, our other big competitors. Their combined coarse grain crops are expected to hit 71 mmt, up nearly 13 mmt from last year, and even above their good crops of two years ago.

Like the Brazilians, the Russians tend to be aggressive exporters in the early part of their marketing year, in part due to lack of adequate storage. When combined with the Brazilians, it puts a lot of available feedgrains in place for buyers the next few months.

It has become common for us to ship 550 million to as much as 800 million bushels of corn by Jan. 1. But last year we only shipped 262 million bushels.

Business should easily exceed last year’s volume, but because of the supplies available from elsewhere and our expected late harvest, our shipments may not be much better than 500 million bushels as calendar year ends.

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Corn Strategy

ü2012 crop: Basis improves a little with futures weakness, but cash prices generally slip lower. Steady cash weakness reinforces the notion old-crop demand has withered away.

We are increasingly less confident of seeing any significant rebound in cash prices. With the southern harvest beginning, risk is starting to rise that prices will soon quickly gravitate to new crop levels. Given that, use strength for catch-up sales. ü2013 crop: The lack of a serious weather issue is making it increasingly difficult to have a poor crop. Frost could cut output, but not enough to significantly tighten supplies.

Still, after Monday’s report, the trade may perceive the need to put some “frost risk” in prices. Wait for rallies to $4.80 on December futures before considering catch-up sales. vFundamentals: The lack of a serious weather problem, and the availability to supplies elsewhere in the world are impacting buyer attitudes.

Business is decent, but they only buy weakness and refrain from chasing strength.

Cents per bu.

Soybean Strategy

ü2012 crop: The tight oldcrop situation is supporting prices, but they are still slowly eroding. The closer harvest gets, the faster the erosion will occur. We do not see a reason to hold old-crop soybeans. ü2013 crop: The perceived need for some frost premium may bring a modest rebound.

But unless there’s a serious issue, November futures will struggle in the $12 to $12.25 range. Use rallies into that level to make catch-up sales. vFundamentals: A significant frost could still moderately trim soybean supplies.

But because of last spring’s large South American crop, supplies will still be more than adequate to get buyers to the next South American crop.

And the early take on that crop suggests it’s likely to be significantly bigger than last spring.

It looks like the planted area will expand if all goes well this fall/winter. There is potential

for the four major countries to produce a crop as large as 5.7 billion bushels, up from last year’s 5.2 billion.

Wheat Strategy

ü2013 crop: Wheat price action has gotten choppy, but continues to slip to new seasonal lows. The first sign of a turn would be a close over $6.76 on Chicago September futures. Wait for a rebound over $6.90 on Chicago September futures to make catchup sales. vFundamentals: During the last few weeks, the wheat market has lacked fresh funda-

mental news and as a result has been at the mercy of the declining corn market. During the month of July the market was able to draw support on strong export demand for U.S. wheat. Recently though, business has started to shift to other countries with their prices at a discount to wheat being priced out of the U.S. Still, it does appear the recent decline in U.S. wheat prices is still attracting some business.

The latest weekly export sales exceeded trade expectations, coming in at 726,200 metric tons.

PERSPECTIVES

FarmWeek Page 16 Monday, August 12, 2013

USDA - cadabra!

Magician pulls permit, rabbit out of his hat Have you ever been to a magic show and the magician pulls a rabbit out of a hat? All the kids cheer. What fun!

I read in the paper recently where the USDA regulates bunny magicians. I never knew that, and I ran the USDA. Entertainers are required to get and pay for a license from the USDA. Marty Hahne, a magician, got a letter that read: “Dear member of our regulated community,” etc.

JOHN Maybe you wonder, BLOCK what is this all about?

Well, some 40 years ago, a well-intended law was passed to regulate circuses and zoos. However, over the years our nanny-state government wrote more rules to go after all kinds of entertainers, even individuals, if their show involves animals — especially rabbits.

Marty Hahne was informed that he had to write a detailed disaster plan — for the rabbit — in case of fire, flood, tornado, ice storm, power failure ... whatever.

His harassment started in 2005. Marty was doing a show in Monett, Mo. After the show, a lady came forward and asked, “Where is your license?”

Marty said, “License for what?”

She said, “For your rabbit.” It so happened the lady was a USDA inspector.

Marty had to get an official USDA license. Cost? $40 each year.

If he is going to pull rabbits out of a hat, he must be licensed and have a disaster plan. His reaction, and I quote, “Our country is broke and yet they have time to harass somebody about a rabbit.”

This rabbit regulation is not a lot different from other government regulations. Congress passes a law leaving room for the regulators to add details. Then, a few years later, the regulators may expand the reach of the law.

This happens all of the time. Presidents often decide they want to require something, and they direct that regulations be expanded to do what they want.

Example: We have seen the Environmental Protection Agency (EPA) try to expand the Clean Water Act to force more control over farms and businesses.

It is not surprising.

Government departments feel that they need to justify their existence. They are always looking for a way to expand their role.

That’s why we need to cut their budgets. Then, they won’t have the money or staff to harass us — or the rabbits — as much.

John Block, former U.S. agriculture secretary from Gilson in Knox County, is a senior policy adviser with Olsson, Frank, Weeda and Terman of Washington, D.C. His email address is jblock@ofwlaw.com.

Comprehensive immigration reform: Pro-growth, pro-ag Earlier this year, the U.S. Senate passed a commonsense immigration reform measure in a strongly bipartisan fashion. This was an important step in the right direction — especially for farmers, farm workers and rural communities.

The historic legislation passed by the Senate provides a pathway to earned citizenship for the 11 million people who are in our country today without authorization. They will have to go to the SCHERRIE GIAMANCO back of the line, pay fines and settle taxes they owe our nation.

It would modernize the system that we use to bring skilled workers into the United States. And it would put in place the toughest border security plan that America has ever seen — building on steps that have reduced illegal border crossings to their lowest level in decades.

The non-partisan Congressional Budget Office found that the Senate bill would reduce the deficit over the next 20 years by nearly $850 billion, and the Social Security Administration estimates that this immigration bill would add nearly $300 billion to the Social Security system in the next decade.

This bill also is important for rural America. Recently, the White House economic team released a new report highlighting the positive economic benefits that commonsense immigration reform would provide for agriculture and rural communities.

The report highlights research showing that without a stable workforce, America’s record agricultural productivity will decline in coming years.

In Illinois, for example, eliminating the immigrant labor force would cost more than $46.5 million to $83.7 million in short-term production losses.

The Senate bill addresses this concern by taking much-needed steps to ensure a stable agricultural workforce, and a fair system for U.S. farmers and farm workers. In particular, it would give qualifying farm workers an expedited path to earned citizenship, as long as they continue to work in agriculture.

A new temporary worker program would replace the current H-2A visa program over time, and allow farm workers a three-year visa to work year-round in any agricultural job.

This commonsense system wouldn’t just prevent a decline in production. It would grow the economy.

Research highlighted in the White House report projects that an expanded temporary worker program would increase both production and exports across our agriculture sector.

Under the Senate proposal, USDA would play a greater role in implementing farm labor programs and ensuring that farmers and ranchers have all the information they need.

As Congress continues to work on this issue, Agriculture Secretary Tom Vilsack and all of us at USDA are committed to working with lawmakers to be sure they have any technical assistance they might need to finalize these proposals.

Immigration reform is very important for farmers, farm workers and communities across rural America. The majority of our agriculture workforce is made up of immigrants, and their hard work has helped America’s farmers and ranchers lead the world.

To remain competitive and keep driving economic growth in rural America, we need rules that work.

Rural America needs Congress to act as soon as possible to carry forward the work of the U.S. Senate and fix today’s broken immigration system.

Reader gives nod to FarmWeek

But I always carefully read FarmWeek because the articles are of real use to those who own ground. While it is hard to say which feature is the most useful, Cash Strategist probably gets the nod.

Keep up the very useful work.

WALTER WINGET Peoria

Scherrie Giamanco is the state executive director of Illinois Farm Service Agency.

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