Farmweek aug 26 2013

Page 1

D a n K e l l e y o f To w a n d a retires this week after ser ving as GROWMARK president for 13 years...................................2

Illinois crop scouts roaming corn and soybean fields are finding variable, yet high-potential yields projected by USDA.........................3

Cover crops, such as cereal rye, can suppress potential diseases in soybeans, according to University of Illinois researchers...................11

A service of

Soy-based turf business blossoms in U.S. Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, August 26, 2013

®

Three sections Volume 41, No. 34

BY DANIEL GRANT FarmWeek

A relatively new use for soybeans is taking root. The development of a soy-based backing for artificial turf is funneling soybeans from farmers’ fields to sports fields across the country. AstroTurf, which is part of Georgia-based Textile Management Associates, in recent years switched from a petroleumbased backing to a soy coating for its artificial turf. And sales of the recyclable turf have blossomed as school districts, universities and professional sports teams are reaping the benefits of the unique soy product. “One of the nice things is it (the soy turf) increases use,” Mike Schwichtenberg, AstroTurf salesman from the Chicago area, told FarmWeek. “Fields (with AstroTurf) can be used 10 times as much (as sod fields). They don’t get bare spots in droughts and they don’t get mud balls (during rainstorms).” The turf has an average lifespan of 12 years. Its versatility and durability opened the door for local school districts to invest in turf rather than traditional sod. AstroTurf covers about 40 sports fields in Illinois and recently was installed on the football field for El Paso-Gridley, a school district with 1,270 students in central Illinois. “We were able to use an integrated co-op purchasing program and got the project in at a much lower cost than the traditional process,” said Mike Lindy, superintendent at El Paso-Gridley.

Above: A football field and track at El Paso-Gridley (EPG) High School was devoid of turf earlier this summer in preparation for installation of soy-backed AstroTurf. The field was completed last week in time for football season with pieces of green, purple and white AstroTurf. The recyclable artificial turf covers nearly 40 Illinois sports fields. Left: Mike Lindy, El Paso-Gridley School District superintendent, talks about a co-op purchasing program that helped fund the soy-backed AstroTurf installment at the high school. The turf has an average lifespan of 12 years. (Photos by Cyndi Cook)

Illinois ethanol operation still strong after five years See Turf, page 2

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

Gene Griffith trumpets the story of Patriot Renewable Fuels LLC — a state-of-the-art plant emerging amid the Great Recession, flourishing in a globally expanding market, and gearing up five years and 550

million gallons later to move into the industry’s next phase. To Patriot’s CEO, it’s a story of homegrown, communitybased energy; of perseverance in Big Oil’s backyard; of the challenges of an industry that continues to meet and confront, headon, daunting market and policy challenges. It’s the story of ethanol. The Annawan operation celebrated its fifth anniversary last week along with community leaders, lawmakers and biofuels industry leaders. The 120 million-gallon-per-year plant to date has consumed more than $1.1 billion in corn from farmers and elevators over a roughly 50-mile radius. It has also generated distillers dried grains (DDGs) for Asian export and corn oil for biodiesel and other uses (see page 3).

Patriot also has contributed roughly $18 million in employee wages and benefits and ongoing

FarmWeek on the web: FarmWeekNow.com

revenues for its northwest Illinois community. The company “has been huge for Henry County,” providing work for truckers and maintenance and other “ancillary” businesses and “a new outlet for a considerable amount of corn that wasn’t there prior,” noted Rob Elliott, National Corn Growers Association Corn Board member and a grower in nearby Warren County. Elliott stressed Patriot “has established itself during some pretty tough times.” Patriot celebrated its anniversary in the wake of the American Petroleum Institute (API) asking the U.S. Environmental Protection Agency to reduce 2014 corn ethanol gasoline blending requirements under the federal Renewable Fuel Standard (RFS2). “We started in 2008,

when we were in the middle of a banking crisis and were seeing some economic deterioration,” Griffith told FarmWeek. “Our biggest ethanol producer (VeraSun) had just filed bankruptcy. “We went in during some very difficult times, and we learned to operate very successfully in that kind of an environment. Five years later, we’ve had five profitable years, and we think we’re in a position to look forward to the next five.” Ethanol and the economy He notes “a lot of concern” about public support for current RFS2 goals and adoption of E15 — 15 percent ethanol gasoline, arguing “we have a lot of work to do to get our story out.” API’s ethanol waiver request seeks to lower RFS2 requirements below even the current 10 percent standard blend level, and is seen as one more attack on retail E15 sales. See Ethanol, page 3

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

Quick Takes

GROWMARK

FarmWeek Page 2 Monday, August 26, 2013

FIELD DEMOS CANCELED – Field demonstrations at this week’s Farm Progress Show near Decatur have been canceled. A cool, wet spring delayed planting, and cool summer weather has impacted crop maturation. Most of the corn at the show site was planted May 15. Matt Jungmann, Farm Progress national events manager, said Decatur is almost 200 heat units behind normal. Tiling demonstrations, organized by the Illinois Land Improvement Contractor’s Association, will take place Tuesday through Thursday north of the exhibit field. For a schedule of when tiling demonstrations will take place, check with the Information Booths on site. To satisfy field demonstration enthusiasts, a Runway Show will feature equipment from the field demonstrations. The Runway Show will be located north of the Annex and will include major equipment manufacturers such as AGCO, Case IH, New Holland, Claas and John Deere. Companies participating in the Runway Show will have an opportunity to talk about their machines in front of the crowd. Harvesting equipment will start the Runway Shows at 11 a.m., precision equipment will take the stage at 1 p.m. and tillage equipment will wrap up the day at 2 p.m.

iPAD WINNER NAMED — Richard Crome, an Illinois Farm Bureau member from Coles County, won an iPad from a drawing at the recent Illinois State Fair. IFB sponsored the drawing at the Commodities Pavilion. Crome farms near Charleston.

LOCAL FOOD WEBSITE — The University of Illinois Extension Local Foods Systems and Small Farms Team has a new “one-stop shop” website for offering information, resources, event calendars and program registrations. U of I Extension has 11 local food systems and small farms educators. The website offers centralized registration for statewide events, such as the Putting Small Acres to Work workshop and the Small Farm Webinar series. The website is geared toward farmers, those considering a farming operation and those interested in local foods. Visitors can find the new website at {web.extension.illinois.edu/smallfarm}.

Retiring chairman/president says brightest days ahead for GROWMARK BY DANIEL GRANT FarmWeek

The long-term goal for many farmers is to leave their operations in better shape for the next generation than when they started farming. And that certainly will be the case in the agribusiness world this month when Dan Kelley retires from his position as chairman of the board and president of GROWMARK. The regional agricultural cooperative has exhibited phenomenal growth since Kelley became chairman in 2000. “We have the strongest balance sheet and best facilities we’ve ever had in our history,” Kelley said during an interview with FarmWeek/RFD Radio. And he believes the best is yet to come for GROWMARK, created by the Illinois Farm Bureau in the 1920s to help farmers obtain a steady and Dan Kelley affordable supply of fuel as farming transitioned to the mechanization age. “I think co-ops, because they’re owned by the people who use them, have a unique perspective,” Kelley said. “When you’re financially successful, there are opportunities to increase facilities to better serve members or you can share returns to the producer as patronage flow.” Annual sales at GROWMARK the past decade increased from about $1 billion to $10 billion. In fact, profits during the last eight years at GROWMARK surpassed profits amassed the previous 76 years.

Caution advised regarding electric tower easements BY MIKE ORSO A recent Illinois Commerce Commission (ICC) ruling approved most — but not all — of electric utility Ameren’s proposal to build highvoltage electric transmission towers and lines across nearly 20 Illinois counties, from Missouri on the west to Indiana on the east. Even though the ICC may rehear the denial or approval of some segments of the line, Laura Harmon, Illinois Farm Bureau senior counsel, said farmers and other landowners should exercise caution if approached by Ameren agents seeking property easements for the lines. “If you are part of a segment of the project where landowners plan to appeal it, we can direct you to a group if that’s what you are interested in,” said Harmon. “However, if you just want counsel to negotiate or represent you in easement negotiations, we have a list of counsel who have negotiated easements with the company or other utility companies here in Illi-

Turf (ISSN0197-6680) Vol. 41 No. 34

August 26, 2013

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

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“We’ve had a very successful run,” Kelley said. “And I think the brightest days are ahead.” Since the 1960s, GROWMARK expanded its co-op model across 30 states and into Canada. Overall, roughly 1 billion people worldwide are members of a co-op, Kelley noted. “It’s a business model that serves a wide gamut of the world’s population,” he said. Kelley is excited for the future of agriculture and GROWMARK. He will discuss his outlook for the future this week (Aug. 27-28) at the GROWMARK annual meeting in Chicago. He believes the industry will continue to advance, via technology, and yield goals of 80 bushel beans and 300 bushel corn are not out of the question. “Farming has been very good the last five years,” he said. “But our costs have moved up. Having a sharp pencil will be important as we move ahead.” One of the biggest changes Kelley has seen during his career in the ag industry, along with technological advancements, is the globalization and consolidation of the business. Kelley, a 1970 Illinois State University graduate with a degree in ag and a 1984 graduate of the Illinois Ag Leadership Program, started his career as director of McLean County Service Company in 1977. He was elected to the GROWMARK board in 1995 and served as one of two vice-chairmen from 1998-2000. He farms in partnership with his two brothers and son near Normal. Kelley plans to spend more time on the farm after he retires from GROWMARK.

Continued from page 1 “And now we’ll be able to use the field all the time (for multiple purposes).” The addition of an all-weather track also was a key part of the upgrade at El Paso-Gridley. Everyone from football players to band members at El Paso-Gridley this fall will perform on the same type of turf used at the Edward Jones Dome, home to the St. Louis Rams. And costs to the school district actually will be less in the long-run compared to natural grass, as the turf requires no water, fertilizer or pesticides. “And the fact that there is a large amount of soybeans used to make the product is icing on the cake,” Lindy said. “We have local farmers who grow a significant amount of soybeans. Hopefully, some (of the locally-produced beans) worked their way into the (sports) field.” AstroTurf sources some of its soybeans

nois. There are a lot of changes that need to be made to the agreements and attorneys have been successful in getting those concessions from the company.” Harmon said IFB reviewed a copy of the Ameren easement and has concerns about the terms, protecting farmers’ interests and providing adequate compensation. “Ameren had seven years to plan this project and file its petition, and our members had less than three weeks to propose their own alternative routes,” said Harmon. “This is too short of a period of time for someone to defend their property rights.” Harmon said county Farm Bureaus along the Ameren high-voltage line route may hold additional meetings about the latest ruling. She said the county organizations also have information about lawyers that farmers and other landowners can retain before they consider signing any easements.

from Illinois, Schwichtenberg, noted. It takes about 3,200 pounds of soy coating for each field of turf. The turf and carpet industry so far has used about 3 billion bushels of soybeans since it began using the soy-based coating, according to Schwichtenberg. “One of the things we like about it is we can recycle the turf,” he said. “So, it keeps the cycle going. When we used petroleum backing, we couldn’t re-use it.” The new-age turf, which acts like grass, is much improved from the older, carpet-style turf. There are additives in the new turf with reflective properties to help regulate the temperature. The drainage system under the turf also keeps water from ponding on the sports fields. “It’s good in wet and dry conditions,” Schwichtenberg added. For more information about the turf, visit the website {AstroTurfUSA.com}.

PRODUCTION

Page 3 Monday, August 26, 2013 FarmWeek

Big crops projected despite yield variability BY DANIEL GRANT FarmWeek

Most of the corn and soybean crops are behind schedule in the Midwest, and yield potential is all over the board so far this season. But, overall, yield estimates continue to suggest farmers will have a bountiful harvest. USDA earlier this month estimated crop Dale Durchholz production would be the largest on record for corn (13.76 billion bushels) and third-largest on record for soybeans (3.26 billion bushels). Last week, scouts on the Pro Farmer Midwest Crop Tour found a great deal of variability, but also similar high-yield potential projected by USDA. Pro Farmer tour participants estimated corn yields this year could average 170.4 bushels per acre in Illinois, 171.9 bushels in Iowa, 167.4 bushels in Indiana, 154.9 bushels in Nebraska and 181 bushels in Minnesota. The state corn estimates

Ethanol

Continued from page 1 Griffith credits increased ethanol blending not only with improving U.S. air quality but also with preserving water quality, by displacing former petroleum-based gasoline additive MTBE, a carcinogenic groundwater contaminant. Plants such as Patriot have helped absorb excess corn production capacity, keeping agriculture a bright spot during the recent recession, he said. Through its annual purchases of 40 million bushels, Patriot has added some 25 cents per bushel to regional corn prices, Griffith estimated. That equates to $10 million per year in added farm income “to reinvest in combines and tractors and autos and pickups and a whole variety of other things,” in turn fueling manufacturing employment. “I think API overlooks those kinds of benefits,” Griffith said. “Market share is the only thing they really care about, and they’ll do anything they can to protect it.” Patriot’s progress Patriot’s new marketing partnership with farmerowned co-op and energy and grains company CHS is expected to boost the

were up from the three-year tour averages. In Illinois, the Pro Farmer corn yield estimate was 15.3 percent higher than the three-year tour average. “The variability is absolutely off the charts,” Brian Grete, senior market analyst for Pro Farmer, told AgWeb.com. Scouts found some cornfields in Illinois with 200-plus bushel yield potential while another field average was estimated at just 104 bushels per acre. Soybean pod counts on the Pro Farmer tour were below the three-year tour average in most states, including a 2.9 percent decline in Illinois. “The market is concerned we’re drying up at the end of the growing season,” Dale Durchholz, AgriVisor senior market analyst, said last week at the Illinois Wheat Forum. “The cool weather (in previous weeks) kind of masked some of the issues.” Those issues could intensify this week as a heat wave with high temperatures in the mid90s was projected to descend upon the Midwest. Durchholz said crop production estimates, including harvested acres, could decline in the months ahead, but the

crops still could be large enough to outweigh demand. “It’s hard to foresee a (corn) crop below 13.5 billion bushels,” he said. The potential for big crops in the U.S., a record soybean crop in South America, and declining investments in commodities likely could keep a lid on crop prices through harvest. The amount of index funds invested in commodities declined $52 billion in the first quarter of 2013. Meanwhile, if South American farmers this season increase soy plantings by 2 to 3 percent and yields are good, it could result in a 5.8 billion bushel bean crop (almost twice the size of the U.S. crop), Durchholz noted. “We can get back to (higher) prices again,” the analyst added. “But (in the past year) we probably captured the high-side of the ag markets for the next few years.” Gary Schnitkey, University of Illinois far m management specialist, last week projected average prices of $4.60 per bushel for corn, $11 soybeans and $5.80 wheat for his 2014 crop budgets.

Annawan plant’s ethanol rail export capabilities as well as containerized DDGs flow to Asian livestock markets. Today, Patriot ships ethanol to domestic markets via 80- to 100-car unit trains. Most of the company’s DDGs are loaded onsite into Chicagooriginated containers, at a rate of 7 to 8 minutes per 26 tons, and dispatched to Chicago or Joliet (the plant is about 1.5 miles from Interstate 80) for rail shipment to West Coast ports. Griffith sees growing biofuels export potential bolstering Patriot’s already “robust” $300 million in five-year DDGs sales. Patriot is working with the U.S. Grains Council and the Renewable Fuels Association to explore biofuels potential, particularly in developing markets. At the same time, Griffith notes efforts to “diversify and expand our business” while reducing costs. Patriot is installing a steam reduction generator expected to cut energy costs by 30 percent. It is also looking at ways to ramp up corn oil extraction technology that currently generates enough annual oil for 4 million gallons of biodiesel.

Griffith is excited by a BPDuPont advanced biofuels venture planned at Nevada, Iowa, and believes Patriot could easily add a cellulosic ethanol component at Annawan “once those systems are proven.” Tom Buis, CEO of the national biofuels group

Ryan Whitehouse, left, Illinois Farm Bureau associate director of national legislation, counts kernel rows near a Mills Shoals Township field with Mike Cole, Locust Street Co. farm manager. The duo participated last week in the 17th White County Crop Tour. (Photo by Doug Anderson)

White County corn yields ‘good’

White County corn could yield an estimated 156.3 bushels per acre — the highest yield estimate in 10 years, according to findings of the 17th White County Crop Tour last week. The estimated yield compares to last year’s drought-stricken average of 67.6 bushels per acre. Average ear length was 7.2 inches, up from 3.4 inches in 2012; average kernel rows were 15.9, up from 10.1 last year; average ear population was 26,151, up from 18,756 in 2012; and the average ear-to-stalk ratio was 97 percent, up from 69 percent last year. Thirty individuals participated in the tour sponsored by the White County Farm Bureau, Wabash Valley Service Company and Consolidated Grain & Barge in Enfield. Teams measured the number of stalks and ears in 60 feet. Data was taken from 10 fields in each of 10 townships, randomly chosen at least 3 miles apart from one another. For the complete report, visit {whitecfb.com}. Doug Anderson serves as White County Farm Bureau manager. BY DOUG ANDERSON

Growth Energy, sees Patriot Renewable Fuels as “a tremendous success story” that represents far more than merely a strategic component in the ethanol industry. “It’s a great recognition of what’s happened throughout rural America,” Buis told FarmWeek. “Look at all those

years where farmers had to get a lot their income from federal government programs. The growth of the ethanol industry and plants like Patriot have created a steady demand for a plentiful crop. Farmers have been able to enjoy the most robust farm economy in the history of the U.S.”

Dustin Favri of Cambridge, Patriot Renewable Fuels shift leader/board operator leads a tour group through the process building where corn fermentation and distillation occurs. Patriot celebrated its fifth year of ethanol production last week with a two-day open house. (Photo by Ken Kashian)

BIOENERGY

FarmWeek Page 4 Monday, August 26, 2013

Extension offers online bioenergy resources

Miscanthus towers above University of Illinois professor and Extension specialist Tom Voigt, second from left, as visitors learn about research on the U of I Energy Farm, Urbana. Participants in the Bioenergy Feedstocks Symposium toured bioenergy plots on the 320-acre research farm last week. (Photo by Kay Shipman)

Researchers investigate potential role for cover crops in corn stover harvest BY KAY SHIPMAN FarmWeek

A bioenergy scientist may add fuel to Illinois farmers’ growing interest in cover crops. David Muth, formerly with the Idaho National Laboratory, last week suggested cover crops may play a role in sustainable harvest of corn stover. Muth’s idea intrigued Pesotum farmer Eric Rund who attended the Bioenergy Feedstocks Symposium in Urbana. Muth, an agricultural software developer in Ames, Iowa, FarmWeekNow.com proposed cover crops may For more information about online bioenergy resources visit replenish soil FarmWeekNow.com. organic matter in cornfields where stover is harvested. “There are interesting opportunities for cover crops,” Muth said. Precision agricultural equipment may offer those opportunities, he added. “The idea of having a rule-of-thumb residue removal rate doesn’t make sense. It doesn’t exist and we should stop chasing it because of subfield variability,” Muth said. As part of a Department of Energy program, Muth started developing tools to help farmers determine sustainable rates of biomass removal. That led to his work on variable rate technology for residue removal. If successful, precision technology could adjust residue harvest from 25 percent to 80 percent of residue within a field, depending on

several factors including soil fertility levels, according to Muth. He illustrated with an agronomic strategy for an Iowa cornfield that has both highly and less productive soils. The farmer had been using conventional tillage to manage the heavy corn residue in fertile areas and caused soil erosion of his less fertile soils. However, a cover crop to add organic matter and reduce erosion plus reduced tillage and precision residue removal could result in 300 tons per acre of stover harvest on that field, Muth noted. Laura Gentry, a University of Illinois crops research professor, is studying the possibility of cover crops that could be used to make biofuels. Gentry described her research at the U of I’s Dudley Smith Research Farm near Pana in Christian County. She is researching the use of tropical maize as a cover crop. Tropical maize, which produces heavy biomass, may be used for ethanol production, Gentry noted. Another potential bioenergy crop/cover crop is pennycress, according to Gentry. She plans to start that research in the spring. Pennycress has been the subject of research and development by the USDA’s National Center for Agricultural Utilization Research in Peoria. Western Illinois University (WIU) researchers are collaborating with USDA on pennycress agronomic research. WIU also is conducting a plant breeding program to develop improved genetic varieties of pennycress for energy production.

Christian County Farm Bureau member Mel Repscher drives visiting Extension specialists around his Taylorville specialty farm last week. The Repscher family grows a wide variety of vegetables, berries and pumpkins on 25 acres. (Photo by Kay Shipman)

Farmers and landowners may plug into bioenergy resources developed by North Central Extension experts, according to a Michigan State University Extension specialist. “We need outreach ... because we hear these (renewable energy) plants are coming online and someone is going to have to work with farmers to supply them. I think that is a role for Extension,” Dennis Pennington, a bioenergy educator, said during last week’s Bioenergy Feedstocks Symposium in Urbana. Pennington highlighted some of the programs and materials available on Extension websites. An array of information is available at {extension.org/ ag_energy}. The site offers articles, photos and videos on different farm energy topics, including bioenergy. Upcoming events and webinars related to ag energy also are listed. For those interested in specific knowledge, free energy-related training modules are online at {fyi.uwex.edu/biotrainingcenter}. Main topics cover bioenergy, anaerobic digestion and on-farm energy conservation and efficiency. Anyone may access the programs geared for self-paced learning. Review questions are offered at the end of each section. Monthly ag energy webinars are hosted by John Hay, an Extension specialist at the University of Nebraska. Announcements of upcoming webcasts are posted on the eXtension Learn site {learn.extension.org}. Participants need an internet connection and speakers. Webinars are archived for viewing later. “We need to share all the resources around us,” Pennington summarized. — Kay Shipman

Extension specialists from 10 states walk between plots of switchgrass, left, and miscanthus growing on the University of Illinois Dudley Smith Farm near Pana in Christian County. Illinois’ research and Extension programs in bioenergy and food production were the focal point for the visitors from Midwest and Great Plains states. (Photo by Kay Shipman)

Extension tour fuels sharing across state lines

Illinois research plots, fields and orchards drew Extension energy and food specialists from 10 states to learn and share last week. The Food, Fuel and Fiber Tour hit Christian County fields, University of Illinois research farms and orchards, and Eastern Illinois University’s Renewable Energy Center in Charleston. The group also sampled gourmet meals of local foods, including goat cheese and sweet corn ice cream. “We’re here to share research and education programs. A lot of the time we are working on the same problems as others,” said Dennis Pennington, a bioenergy Exten-

sion specialist at Michigan State University. One of the Extension tour sponsors was the North Central Sustainable Agriculture and Research Education (SARE). Robert Myers, SARE’s North Central regional director, told FarmWeek the multi-state collaboration is valuable. “We found real benefits from getting folks together to share what they’re doing, training approaches and curriculum,” Myers said. The specialists also learned from a Taylorville farm family. Mel Repscher described his specialty crop farm and onfarm manufacturing business in Christian County. The fami-

ly raises 20 acres of vegetables and berries and 6 acres of strawberries during the growing season. In the fall, the Repschers draw customers and school groups to their pumpkin patch and corn mazes. Over the winter, they manufacture corn furnaces as Big M Manufacturing. The Extension specialists quizzed Repscher on how he sells his produce at the local farmers’ market and a you-pick operation at the farm. At the University of Illinois Dudley Smith Research Farm near Pana, the specialists learned about research projects on miscanthus, switchgrass and tropical maize. — Kay Shipman

HEALTH CARE

Page 5 Monday, August 26, 2013 FarmWeek

Clinic administrator, lawmaker improve rural care BY MARTIN ROSS FarmWeek

Navigating community medicine and mental health is a daunting enough task. Braving the bureaucracy and helping make regulations work for the patient? Well, ask Jeanne Hill. During its annual meeting last week in Effingham, the Illinois Rural Health Association granted the Quincy Family Medicine administrator its Award of Merit for Hill’s role in twice amending Medicaid payment rules that impact rural mental health and women’s care — two of southern Illinois’ more pressing medical issues. Last year, Hill contacted Rushville Democrat Sen. John Sullivan in an effort to guide prospective Illinois changes in program payment regulations. Under initial Medicaid proposals, a psychiatrist would have had to be present during all patient group psychotherapy sessions for clinics to receive reimbursement. Most rural communities lack a local psychiatrist, “and even if they do, it’s hard for them to afford one,” Hill said. Because they generally don’t require a full-time psychiatrist, clinics would be forced to contract with a regional professional for group visits — a costly option. Sullivan and Hill were able to secure reimbursement for clinics that instead use licensed clinical social workers. That, along with $2 millionplus in grants from the Illinois Children’s Health Care Foundation, are helping the Quincy clinic integrate Adams County mental health services and outreach into its primary care mission. The clinic focuses on individual and group visits with children and parents, and “we’ve had a lot of success stories,” Hill related. But she cites a growing need for affordable rural mental health services amid continued economic challenges and farm stress, and reduced “stigma” attached to farm families seeking counseling. Hill’s work with Sullivan was not done. As a rural health clinic, the Southern Illinois University School of Medicine-supported Quincy center receives a standard dollar amount per reimbursable visit, “no matter how many resources we use,” she noted. And “our resources are very limited,” Hill stressed. With a change in the law, the center no longer would be able to purchase and be reimbursed for costly, in-demand implantable contraceptive devices from designated pharmacies. “We were going to have to purchase those ourselves, but under rural health laws, we wouldn’t have been able to be reimbursed for them,” Hill told FarmWeek. “That was going to be cost-prohibitive. Sen. Sullivan worked it out so

we could bill for those separately and still get reimbursed. “I sent Sen. Sullivan a really nice thank you the first time, thinking it would be years before I’d have to bend his ear again. It was only a couple of months. Sen. Sullivan was very willing to listen, which was awesome.” While funding’s always an issue for her clinic, she enjoins state and federal lawmakers “mainly, to listen to our needs.” Policymakers must understand that however beneficial a provider requirement might look on paper, “we don’t always have the resources available to make those happen,” she said. “When you’re in rural health, you have to get very creative and innovative,” Hill noted.

Keeping rural care ‘fresh’: Physician retention improving? Quincy Family Medicine Administrator Jeanne Hill credits her clinic’s innovation in large part to the flow of “fresh ideas” among the center’s Southern Illinois University College of Medicine medical residents. Hill is buoyed by prospects for keeping fresh thinkers in rural communities. In fact, she can show you the maps — Illinois and Missouri maps hanging in the clinic that track the postresident movements of her young charges. “They’re willing to go out in the community and work on projects,” Hill told FarmWeek. “They have a lot of enthusiasm. “We have lots of doctors who graduate and go out to rural communities. That’s our emphasis — training doctors for rural health and medicine. I would say half of our doctors have stayed in Illinois or Missouri, if not two-thirds.” Rural communities and hospitals have struggled in recent decades to attract and retain primary care physicians amid the lure of an urban/suburban setting and specialty practice. Today, however, Hill sees more residents

focused on “how they want to raise their own families” and drawn to a rural lifestyle. — Martin Ross

Jeanne Hill, displays Illinois and Missouri maps that track the progress of former clinic residents. (Photo courtesy of Jeanne Hill)

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FarmWeek Page 6 Monday, August 26, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had one of those million dollar rains here in northern Illinois on Thursday. We only ended up with 0.5 of an inch here at our farm and there was 0.75 of an inch near Seward, but south of Rockford there were 3- to 4-inch totals reported in a small area. This rain will really help the beans at this critical pod fill stage, and also help corn fill out the kernels. With the high temps forecast for the upcoming week, it’s a good thing we got the rain when we did. It’s time to enjoy the Farm Progress Show. Leroy Getz, Savanna, Carroll County: Scattered rain on Thursday gave us 0.25 of an inch. The forecast of hot and dry conditions has everyone talking that this crop may mature too soon. Yield estimates are still good on corn, but the soybeans may be losing some of their top yields. There may still be a need for the crop insurance adjusters this year. Ryan Frieders, Waterman, DeKalb County: Early in the week, the temperatures warmed up and the crops showed signs of stress. Corn rootworm beetles have emerged and are feeding on corn silks and ear tips. A much needed rain shower came through the area on Thursday, and you could see the plants’ immediate response. Larry Hummel, Dixon, Lee County: The bleeding has stopped for now. Potential corn and soybean yields have been slipping lower and lower as dry weather blanketed the area during August. Thursday’s rain that dropped anywhere from 0.4 to 0.8 of an inch has temporarily halted the steady decline. The 10-day forecast doesn’t look promising with no rain and 90 degree temperatures. Ken Reinhardt, Seaton, Mercer County: It was a dry week. Not a good thing with the hottest temperatures of the year coming. Aphids have been found on soybeans, and they will thrive in these conditions. I took a ride in a QC Challenger plane Thursday. Plenty of problems are evident in cornfields that look good from the road. Mercer County had the top county average corn yield in the state last year. This year we may be in the lower third. Ron Moore, Roseville, Warren County: We did not receive any rain last week. We are now very dry. The corn is starting to abort kernels on ear tips. The soybeans are having trouble retaining pods. Harvest is still weeks away, and we are losing yield every day. The forecast is for hot and continued dry conditions for the rest of the month. I have had to move cattle into the feedlot since they have found the corn on the other side of the fence. Streams are also dry. Now for some good news. I hope to see many of you at the Farm Progress Show this week. Jacob

Streitmatter,

Princeville, Peoria County: Unbelievable what this last week has done to the corn and soybean crops in the area. No rain and increased heat has left the corn starved for moisture firing up to the ears in areas of the field. The soybeans on lighter ground have also turned their leaves and struggle to survive. No more rain in the forecast and highs in the upper 90s will be ugly for this crop that once had potential.

Tim Green, Wyoming, Stark County: Thursday afternoon we had a few sprinkles around the county. A lot of corn is starting to look tough and getting that pale green color in spots. The beans are starting to have those circles out in the fields. I have heard of spider mite spraying to the north of the county where it is a little drier. We could use an inch of rain, but it’s not forecast. A lot of people are talking about corn rootworm and trying to figure out what to do about it if anything.

Mark Kerber, Chatsworth, Livingston County: We returned home from a trip to Colorado to find no rain in our gauge except 0.4 to 0.8 on the day we got back. My neighbor said it’s too little, too late. Crops look green all the way west once you get out of southern Livingston County. Crop conditions have really deteriorated here during the last 10 days. Corn, however, will be much better than last year. It’s hard to yield check soybeans yet. Many believe crops will yield at federal crop insurance guarantee levels. It’s time to think about harvest machinery preparation, but we have plenty of time. See you at the Farm Progress Show. Ron Haase, Gilman, Iroquois County: After 20 days without rain, we finally received a range of 0.8 to 0.9 of an inch on our farms Thursday. Before the rain, cornfields were starting to show the stress. Some plants were rolling their leaves, and they began robbing nutrients from the stalk to fill the ear. Some even had ears starting to hang down. The crop condition was changing fast in the heat in the couple days before the rain. Corn development ranges from the R2 up to the R5. Most of the corn in our area is at R4. Soybean development ranges from R4 up to R6. Both crops are at the same stages of development as they were at this time in 2009. This is also the same point when the rains started to become plentiful in 2009. How will things turn out this year? The local closing bids for August 22 were nearby corn, $6.17; new-crop corn, $4.44; nearby soybeans, $14.23; new-crop soybeans, $12.69. Brian Schaumburg, Chenoa, McLean County: Some fortunate souls were blessed with a rain event of 0.3 up to 2 inches. However, that event was mostly limited to fields north of Route 24. Others have had no rain for more than 20 days. With more heat on the way, we will soon find out how much subsoil moisture is left to finish out the crop. Rootworm beetles are the only prevalent insect right now. Disease is minimal and this still could be one of our top five yielding corn crops. Good to see folks at the Prairie Central annual meeting. Corn, $6.23, fall $4.53; soybeans, $14.35, fall, $12.70; wheat, $5.97. Steve Ayers, Champaign, Champaign County: Friday morning, I was whistling that classic C & W lament, “Cobwebs in My Rain Gauge.” It has been a popular tune the past two summers and seems to have returned. At least we got 0.06 of an inch Wednesday night. Temperatures will hit the 90s for the Farm Progress Show. The weekly forecast has no raindrops, though. Most of the area is “abnormally dry” with topsoil 21 percent very short, 40 percent short and 39 percent adequate. Corn is 86 percent dough stage and 24 percent dent. Beans are 100 percent blooming and 100 percent setting pods. Water hemp is popping up through the soybean canopy, so we’ll continue strolling through bean fields. See you at The “Really Big Show” in Decatur! Tom Ritter, Blue Mound, Macon County: Scattered showers on Thursday were few and far between and did not leave much measurable accumulation. We are getting to be on the dry side, but still have somewhat adequate moisture. Crops continue to mature, but at a slow rate. We had a little more heat last week, but still quite a ways from harvest. Seeing very little maturing in the corn. What little corn we planted May 1 and May 2, tested 44.4 percent last week. We are not seeing many signs of loss of nitrogen. Most of the corn is staying green. Some of the last soybeans we planted were still having a few blooms at the top, but for the most part, flowering has halted. Of course, no field activity at this point, only some mowing of roads and preparation for the upcoming harvest. Many farmers are looking forward to the Farm Progress Show here in Macon County. They are anticipating major crowds, mostly because farmers are a long ways from their own harvest and will be able to spend additional time at the show. Come down and join us.

Wilfred Dittmer, Quincy, Adams County: It was another dry week around here as the rain gauge recorded another big zero for the week and zero so far for the month. Are we going to have another dry year? I guess two dry years in a row could happen, but if the bushels are not there, it will show up sooner or later in the combine hopper. Have a good week. Carrie Winkelmann, Tallula, Menard County: We need rain. Noticing a few disease problems popping up in soybean fields. Corn is starting to fire. The big issue this week is that we could really use some rain.

Jimmy Ayers, New City, Sangamon County: Most of the county remains dry. We had 0.45 of an inch of rain last week. Corn is tipping back. Yield checks show we won’t have consistent 200-bushel yields some thought. Our checks showed yields of 140 to 200 bushels. Nitrogen deficiency seems to be part of the problem. Dry soils prevented uptake by the corn plants. We’ve done tissue testing in corn and soybeans. Nutrient issues are not a problem in soybeans. We’re looking forward to heat this week to help mature the crops. Doug Uphoff, Shelbyville, Shelby County: In July, we had 3.7 inches of rain. So far this month, nada. Crops really took it on the chin last week. Corn started firing pretty badly. Hay was cut and baled and tonnage was down because of the dry weather. Beans are setting pods, but some are being aborted. I have not noticed or heard of any threshold levels of aphids in the beans yet. I guess we wanted heat to catch the crop up on GDD’s, but we all would like some rain to go with it. We are 900 growing degree days behind last year because of late planting and cool temps this June and July. We need 2,600 to 2,800 to reach maturity on corn. So it’s going to be a while before harvest starts. Next week’s the Farm Progress Show, so maybe we will see ya there. David Schaal, St. Peter, Fayette County: Had lots of thunder and lightning early Friday morning, but only 0.1 of an inch of rain. Watching it come through on radar, the western part of the county had a real good rain. Summer returned with temperatures in the upper 80s/low 90s with higher humidity. Some hybrids are starting to dent. Still has a ways to go for the end of August. No bugs or disease, but a good rain would be greatly appreciated. Some ears are beginning to tip back a little bit on the ends. Soybeans seem to be at a standstill due to a week or 10 days of cool weather, but the heat and humidity may kick them back in gear. Farmers are mowing and beginning to look at a few things to get ready for harvest. Jeff Guilander, Jerseyville, Jersey County: My boys started back to school on Wednesday, so I guess summer is officially over. I hear some schools are getting out early due to heat. No offense, but I hope that continues for another few weeks. Some corn is starting to dent, but the stalk is still deep green. I do not know if that is ultimately good or bad. Soybeans are still setting pods and, to this point, not even the early beans (usually cut around Sept. 15) are showing any signs of maturing. Looks like we will have another few weeks to try to figure this out. Dan Meinhart, Montrose, Jasper County: It’s been a very hot and humid week. Widely scattered showers moved through the area Thursday nightand Friday morning. The July-planted beans are growing rapidly and have good color. The main field activity this week was spraying beans with herbicide and fungicide. Other activities included going to fairs, field days and hauling grain. A nice rain would be welcome in the area.

Page 7 Monday, August 26, 2013 FarmWeek

CROPWATCHERS Rick Corners, Centralia, Jefferson County: No rain another week. Beans need it now.

Kevin Raber, Browns, Wabash County: The Wabash County yield tour came up with 165 bushels per acre average for our county; much better than last year. This estimate is one of the highest yields since the yield tour was started in 2000. Harvest is still several weeks away for most of us. The cooler weather has slowed the corn, but now with warmer days and drier soils, the corn may move towards maturity faster. The bean crop looks good, but with the warmer and drier conditions, you can pick out the lighter soils very quickly.

Dean Shields, Murphysboro, Jackson County: The weather this week was uneventful. We had some slightly cool weather and then it warmed back up. Not much rain other than a trace here and there. The corn is starting to get that look as if it is going to start turning. The beans are filling lots of pods. The milo has pretty good heads on it. The crop looks good, but we are still wondering how good it will be. This time of the year, we are fixing equipment, taking vacations and mowing right-of-ways.

Randy Anderson, Galatia, Saline County: Thought it never would, but the heat has finally showed up. Temps ran in the low 90s last week. The heat has sure helped the beans, but the corn can still use some heat to push it along. A few early fields of corn around the county are turning. I say they’re still two to three weeks out from being ready to harvest. Some late hay making is taking place. The quality is very good with all the rains we had this summer. If you get a chance come out to the DuQuoin State Fair.

Soybean rust continuing to creep closer to Illinois Asian soybean rust is building up in soybeans in the South, particularly in the southeastern United States. Alabama has experienced the greatest spread of the disease. It is important to note, however, that the movement and buildup of rust in the South has occurred largely without the benefit of weather-related spore transport events. There have been no major tropical weather systems available to help move spores northward this season. In fact, the few major weather systems to cross the Midwest have had rotation unfavorable to rust spore transport into this area. As we look at the prospects for soybean rust infection of soybeans in the Midwest, here are some considerations: • Soybean maturity is delayed in many areas. This could allow late infections by rust if spores eventually find

BY KEVIN BLACK

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

their way into our geographies. • We face greater risk from early frost than we do from soybean rust. • Time is against rust infections. Spores arriving today would require three to four weeks for infection and buildup to the point where we could detect it, then another three to four weeks for the disease to build to damaging levels. • Dry weather conditions spreading across the western Corn Belt are unfavorable for rust infection. Where Asian soybean rust is concerned, diligence is always important. Based on where the disease is today, and time remaining in this growing season, it is unlikely that we will experience economic r ust infections for the remainder of the 2013 season. Kevin Black is GROWMARK’s insect and plant disease technical manager. His email address is kblack@growmark.com.

PASSPORT TO FARM EDUCATION

Two Cook County Farm Bureau Passport to the Farm Camp attendees learn about pigs. The four-day program recently attracted 40 Chicago students. The second- through fourth-graders learned about corn, soybeans, soil, hydroponics and more. Participants received a backpack and passport, which got stamped upon completion of each learning station. (Photo by Diane Merrion, Cook County Farm Bureau ag coordinator)

Dixon Springs hosting beef field day

The University of Illinois Dixon Springs Agricultural Center will host its annual Beef Field Day Thursday at 5 p. m . T h e p r o g r a m w i l l f o c u s o n research conducted at Dixon Springs pertaining to cow-calf producers. A new Natural Resources Conservation Service program aimed at renovating endophyte-infected tall fescue pastures will be announced. The field day will conclude with a complimentary dinner prepared by the Shawnee Beef Association. There is no

charge to attend the Beef Field Day. However, pre-registration is required for an accurate food count. To register or for more information, call 618-695-4917, look under the “FindEvents”linkat {web.extension.illinois.edu/dsac/} or email Teresa Steckler at tsteckle@illinois.edu with your name, address, county, phone number and number attending. Participants can indicate dietar y or disability accommodation needs when registering.

Tuesday: • RFD Radio Team broadcasting live from Farm Credit Services exhibit at the Farm Progress Show Wednesday: • RFD Radio Team broadcasting live from Beck’s Hybrids exhibit at the Farm Progress Show Thursday: • RFD Radio Team broadcasting live from Case IH exhibit at the Farm Progress Show Friday: • Harry Cooney, GROWMARK manager of energy customer risk management • Ivan Dozier, Illinois Natural Resources Conservation Service state conservationist • Darren Bohannon, Bayer Crop Sciences technician To find a radio station near you that carries the RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”

FarmWeek Page 8 Monday, August 26, 2013

WHEAT

Page 9 Monday, August 26, 2013 FarmWeek

Wheat plantings could be stunted by late harvest BY DANIEL GRANT FarmWeek

Wheat plantings could slip this fall in Illinois despite an extremely successful run the last couple years. The statewide yield average this year (67 bushels per

“Yields were really good this year,” Nafziger said last week at the Illinois Wheat Forum in Highland. The annual event is sponsored by the Illinois Wheat Association. “Fields were ready to plant

‘I don’t see either corn or soybeans coming out as early as we’d like to get wheat planted this year.’ — Emerson Nafziger U of I crop systems specialist

acre) matched the highest yield on record (2006). And, last year, the wheat crop was the “bright spot” for many farmers who were severely impacted by the drought, according to Emerson Nafziger, University of Illinois Extension crop systems specialist. The average wheat yield last year, 63 bushels per acre, was higher than the corn yield for many farmers, particularly in southern Illinois.

early,” he continued. “There was much more wheat after corn. Farmers captured a lot of leftover nitrogen (not used by burned up corn that eventually benefited the wheat crop).” The situation is just the opposite this year. Late plantings of corn and beans combined with slow crop development, due to abnormally cool temperatures in recent weeks, could lead to a late harvest.

IWA to host first statewide wheat yield contest in 2014

Wheat growers who can duplicate or even improve upon their success this season in Illinois could earn a cash prize next season for impressive yields. The Illinois Wheat Association (IWA) recently announced it will host its first statewide wheat yield contest for the crop that will be planted this fall and harvested in 2014. “We think it’s a great way to promote wheat in Illinois,” Steve Stallman, IWA president, said last week at the Illinois Wheat Forum in Highland. The Illinois wheat crop this year yielded a record-high 67 bushels per acre. Some growers reported yields of 100-plus bushels per acre. The state will be divided into a north and south region, along Illinois 16, for contest entries. The location of the field, not the entrant’s address, will determine the region of each entry. A contest field must be at least 10 continuous acres with a minimum of 2.5 acres of the field harvested for the official weight and yield. Each entry must be from a fall 2013 certified seed purchase. Farmers interested in entering the contest must be a member of IWA. There is a $50 fee for each entry. The prizes for each zone will be $500 for first place, $250 for second place, $125 for third place and a three-year IWA membership for fourth place. For more information about the contest, contact IWA at 309557-3619 or contact Diane Handley, IWA executive director, at 309-557-3662 (or email her at dhandley@ilfb.org) or visit the website {illinoiswheat.org}. Payment and entry fee must be postmarked by March 14. In other wheat forum news, Stallman announced two minor changes to the Wheat Act. The updated act specifies that if a wheat referendum is passed in Illinois, a checkoff could be up to 1.5 cents per bushel with a refund available to farmers who apply within 90 days. The proposed wheat checkoff rate previously was not adjustable at 1.5 cents per bushel, with a refund available for farmers who apply within 60 days. “At this point, we’re not going forward with a referendum,” Stallman said. “But, at some point in the future, we may try to do that.” About 110 people attended last week’s wheat forum, which was the second-highest turnout for the summer conference, Handley reported. — Daniel Grant

“I don’t see either corn or soybeans coming out as early as we’d like to get wheat planted this year,” Nafziger said. Jim Pingsterhaus, a farmer from Germantown (Clinton County), said his wheat plantings will be determined by the weather. Last year at this time, he already purchased his wheat seed whereas this year he had not bought any as of last week. “If we have a wet harvest, I’m not going to mud in wheat,” Pingsterhaus said. “I think it’s a different game this year. There’s a lot of seed, but nobody is jumping on the bandwagon to buy it.” Illinois farmers last year planted 820,000 acres of wheat compared to 660,000

FarmWeekNow.com

Additional information about the wheat forum can be found at FarmWeekNow.com.

acres the previous year. Production this summer subsequently increased 30 percent compared to the

2012 harvest. And, with strong prices, there is financial incentive to plant wheat. Gary Schnitkey, U of I farm management specialist, reported crop returns showed farms with modest wheat acres in southern Illinois have done as well as any other crop combination. He also noted double-crop soybeans enhanced wheat returns.

Nafziger believes that, from a production standpoint, late wheat planting still is better than planting before the fly-free date. “I’d rather plant wheat 10 days after the fly-free date than 10 days before,” he said. “I’m not too concerned about planting wheat in midOctober in southern Illinois.”

GOVERNMENT

FarmWeek Page 10 Monday, August 26, 2013

Davis buoyed by House/Senate leaders’ tax game BY MARTIN ROSS FarmWeek

As Congress’ two top tax honchos continued mapping their 2013 road trip in search of grassroots guidance, U.S. Rep. Rodney Davis hit the State Fair pavilions recently on his own summer ag tour. House Ways and Means Chairman Dave Camp, RMich., and Senate Finance Chairman Max Baucus, DMont., are making a series of nationwide stops aimed at gathering taxpayer input on how to repair flaws in the U.S. Tax Code and tailor tax policy to support job creation and economic growth. On the heels of recent visits in Minneapolis-St. Paul, Philadelphia and California’s Silicon Valley, the pair is participating in a Tennessee event coordinated by Tennessee Farm Bureau. They are seeking feedback from multinational corporations, family businesses and individuals. Davis, a Taylorville Republican and freshman on the House Ag Committee, said

Camp — with whom he conferred recently — “wants to start with a clean slate.” The Illinois congressman views that as a “laudable goal,” enabling lawmakers essentially to rebuild a federal tax code based on provisions “that are actually working.” He noted the need for reforms that reflect “the good things the agricultural economy’s been able to accomplish even during the times of the Great Recession and this supposed recovery.” “It’s a lot easier to start from scratch than to peel back, layer by layer, that extensive tax code that’s grown over the decades,” Davis told FarmWeek following remarks on the Illinois Farm Bureau state fair stage. “We have to get this country to a simpler, fairer, flatter tax that will allow our economy to grow and not kill sectors of the economy that are doing well, like agriculture.” For information on congressional tax efforts, visit {www.taxreform.gov}.

Meanwhile, the Affordable Coverage Project (ACP) coalition, which includes American Farm Bureau Federation (AFBF), is soliciting support in fighting a projected $100 billion health insurance tax (HIT) at {www.stopthehit.com}. ACP plans to ramp up online ads in states affected most significantly by the tax or that are home to influential lawmakers. The tax, created through new, administration-championed health care law, would raise the cost of small business health insurance premiums by levying more than $87 billion in assessments on health insurance companies between 2014 and 2019 alone. The tax will be “almost entirely passed on to consumers in the fully insured marketplace,” where selfemployed households such as farms generally buy coverage, ACP stated. AFBF Deputy Executive Policy Director Bob Young warns HIT likely would result in a “substantial reduction” in the benefit provided by the current self-employed health

insurance tax deduction, depending on factors such as a producer’s state and health insurance plan. Young is encouraged by congressional discussions to

date, citing Camp’s extensive series of tax policy analysis “white papers” and Baucus’ traditional ag support. “They’re definitely listening to us,” he told FarmWeek.

‘Trust fund babies’ relying on WRDA to help themselves

U.S. Army Corps of Engineers Director of Civil Works Steve Stockton likens U.S. river interests to “trust fund babies living off the investments our grandparents and great-grandparents made generations ago.” Those generations “knew what it was like not to have clean drinking water, knew what it was like not to have reliable transportation networks,” Stockton argues. Now, the note’s coming due again. U.S. trade is expected to more than double over the next 20 years, Stockton said. But U.S. locks crucial to moving ag exports on average are roughly 60 years old “and getting older,” he noted. In 1982, Corps-maintained infrastructure was valued at about $237 billion. The value of that investment’s fallen to $164 billion “due to national degradation,” Stockton said. Current Inland Waterways Trust Fund revenues are “insufficient” to provide the 50 percent private cost share required to leverage federal lock spending, he noted. The trust fund is fed by barge fuel taxes, and the barge sector has proposed hiking its own river “fees” through the federal Water Resources Development Act to fund improvements amid resistance from conservative lawmakers. “The bottom line is, there’s not enough money to do everything that’s expected of us,” Stockton said. “We’re trying to be a little creative in how we accomplish our missions. “The biggest challenge we have is aging infrastructure. This gets into the reliability and predictability of the infrastructure to move a lot of bulk commodities to market. We’re trying to make the best possible use of every federal dollar we get.” At this point, that means focusing on motors or other individual lock components throughout a region rather than updating one entire system lock at a time, he related. Even at that, the Corps and the private Inland Waterways Users Board have laid out a 20- to 30-year capital project business model “that only touches about 20 of the 242 lock chambers nationwide,” Stockton advised. Rick Calhoun, who heads Cargill’s barge business, estimates that under the current “status quo” new construction at Mississippi Lock and Dam 25 at Calhoun County won’t be completed until 2064, when “I’ll be 110 years old.” And that’s one of the nearer-term projects, he stressed. “We need to increase that tax,” Calhoun told FarmWeek. “It hasn’t gone up in 20-some years, and the buying power of those dollars has gone down dramatically. We need to get more money in the trust fund to get the projects done.” — Martin Ross

Agriculture saluted at football game

Agriculture will kick off a public tailgate event from 9 to 11 a.m. Sept. 7 prior to the Illini/Cincinnati football game at Memorial Stadium, Urbana. The College of Agricultural, Consumer and Environmental Sciences (ACES) Salute to Agriculture Day will honor prospective and current students as well as alums. The event will take place at the ACES tent located just west of the State Farm Center (Assembly Hall) main entrance/circle drive. U of I President Bob Easter will be on hand with legendary agribusiness broadcaster Orion Samuelson, and several distinguished Illinois agricultural leaders. An auction of State Fair prize-winning meat packages will wrap up the program. Register for tickets at {ecommerce.aces.illinois.edu/salutetoagriculture/}. Breakfast will be served to adults for $15 and students for $10. A limited number of football tickets will be available for $20 each. Tickets may be picked up at the tailgate if reserved online prior to the event. For more information, contact slconrad@illinois.edu or call 217-244-8227.

RESEARCH

Page 11 Monday, August 26, 2013 FarmWeek

Researchers exploring strategies to reduce nutrient losses Cover crops suppress soybean diseases in research

George Czapar, a scientist with the Illinois State Water Survey, shows a sampling monitor used in water quality studies during the recent Agronomy Day at the University of Illinois. (Photo by Kay Shipman)

BY KAY SHIPMAN FarmWeek

The weather threw a curve ball at practices to reduce nutrient losses this spring. George Czapar, director of the center for watershed science at the Illinois State Water Survey, noted a variety of practices being studied “were overwhelmed when the plots were flooded.” Czapar discussed strategies to reduce nutrient losses during the recent Agronomy Day at the University of Illinois. “Cover crops have been shown to be effective in different

scenarios,” Czapar said. “We want to explore and see where cover crops might fit in and tie up (excess) nutrients. “There will be challenges in how to plant (cover crops) in the fall,” he added. Cover crops are among the practices being evaluated for the potential of reducing nutrient losses. Researchers also are evaluating potential nutrient loss reductions along with the estimated adoption costs of stewardship programs, edge-of-field treatments and land use changes, according to Czapar.

Analyst on farm bill: ‘It’s all crop insurance’ BY MARTIN ROSS FarmWeek

Given bleak odds for new farm program funding and the impact of federal premium subsidies in improving the health of the farm risk pool, the farm bill debate from a producer standpoint is “all crop insurance.” So said ProExporter Network analyst Marty Ruikka at last week’s Illinois Corn Growers Association board meeting. He stressed “there’s no money in the Treasury for you to get surplus management or set asides.” Thus, “crop insurance is the thing to get,” Ruikka said, underlining the need for a new farm bill that strengthens insurance protections and preserves current premium subsidies. The current extended 2008 farm bill expires Sept. 30. Congress will return to Capitol Hill facing a potential square-off over the Senate’s comprehensive five-year farm plan and a “split” House farm bill that omits key food stamp provisions important to Democrat lawmakers. Ruikka noted the consumer’s share of discretionary income needed for food “continues to go down,” in part because of crop insurance protections that sustain production. He argued improved federal premium subsidies have brought more lowrisk farmers into the overall crop insurance pool, helping at least offset program costs. “Maybe 10 years ago, you didn’t get a lot of Champaign County corn farmers to get into

the crop insurance program,” he suggested. “The way things are structured today, with premium support, we have great participation, and that’s making the loss side of the program much more manageable. “What if we start to lose some of that participation? The first guys out are going to be the low-risk guys. Those are the guys we want in the pool.” Because the program is authorized under separate legislation, Ruikka stressed prospective farm bill expiration would have “zero impact” on continued crop insurance operation. However, producers are bracing for the possibility of a farm bill void that could affect various commodities. American Farm Bureau Federation Chief Economist Bob Young noted dairy producers would be affected first by failure to extend the farm bill, facing the return of outdated milk “parity pricing” in 2014 under default 1949 “permanent ag law” authorizations. Without extension or a new bill, existing federal crop benefits would lapse at the end of the current marketing year — June 2014 for wheat growers and September 2014 for corn and soybean producers. “You’d kind of like to get this legislation moved before you get into an election year,” Young added. “As bad and ugly as things are this year, they’re only going to get worse next year.”

Cover crops suppressed soybean diseases in university and farm research trials during two years of a three-year study, according to Darin Eastburn, University of Illinois plant pathologist. Eastburn discussed the research that involves the U of I, Southern Illinois University and Western Illinois University (WIU) during the recent Agronomy Day at the U of I. The researchers planted cereal rye, rapeseed, canola and Darin Eastburn mustard into soybeans. Rapeseed, canola and mustard were selected because they release chemicals that inhibit soil pathogens, he noted. The U of I research farm plots were inoculated with the soy pathogen that causes root rot and the causal agent of sudden death syndrome (SDS). In 2011, the scientists “saw a dramatic effect” of cereal rye on the fields inoculated with soy pathogens, Eastburn said. While 80 percent to 90 percent of the soybean seedlings died in the inoc-

Czapar envisioned Illinois developing a matrix similar to one released last fall by Iowa State University. Iowa State developed “a spread sheet with the estimated value” of nutrient

ulated control plot without cover crops, there was no difference between the seedling stands on the inoculated plot with cereal rye and the plot that wasn’t inoculated. In 2012 and 2013, researchers again saw a difference, but it was not as dramatic, Eastburn reported. Researchers also saw a reduction of foliar diseases in soybean fields that had a cover crop of cereal rye. Researchers reported suppression of SDS in soybean fields with rapeseed or rapeseed and cereal rye. Those cover crops’ presence “was able to make the soil more resistant to SDS,” Eastburn said. SDS also was suppressed in WIU plot soils that were planted with rapeseed and mustard cover crops. Some WIU plots had high populations of soybean cyst nematodes. “Significant reduction of cyst nematodes” was observed in plots with cereal rye and rapeseed cover crops, Eastburn noted. “If you’re looking for reasons to use cover crops, we now have evidence it’s likely they suppress diseases in certain situations,” Eastburn said. — Kay Shipman

reductions from different programs and practices, he said. The Illinois Environmental Protection Agency is developing a strategy to prioritize watersheds statewide for reduc-

tions of nitrogen and phosphorous levels in surface water. A range of scenarios using different strategies would be developed to help meet state nutrient reduction targets.

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RESEARCH

FarmWeek Page 12 Monday, August 26, 2013

Confirmation of rootworm Bt resistance a slow process BY KAY SHIPMAN FarmWeek

Western corn rootworms thwart today’s standard of instant information. The testing process to confirm rootworm resistance to Bt hybrids is lengthy and painstaking, an Illinois Natural History Survey scientist explained during the recent University of Illinois Agronomy Day. “It would be great if growers could get information quicker, but we’re not there yet. We need to think of faster ways,� said Joe Spencer. He described the bioassay testing process that is key to monitoring Bt resistance in Illinois. Last year, large numbers of suspected resistant beetles were collected in Bt fields in McDonough, Mercer and Sangamon counties. Spencer said bioassays involve “two parts and they’re both hard.� Scientists need hundreds of beetles and need to

collect thousands of eggs. “We can’t (just) put eggs on a plant and test them,� he added. The eggs must wait in the cold for 17 weeks. The scientists test the eggs from potentially resistant females on both Bt and nonBt hybrids. Corn will be grown from seed and its growth must be timed to match the egg hatch, Spencer added. Dirt is scraped from the young corn plant roots, and scientists “paint� corn rootworm larvae, 10 at a time, on the roots. The plants with larvae are put into a growth chamber for 17 days. The next step involves surviving larvae to sort themselves when they move down into a metal funnel to escape the heat of a light, Spencer explained. They slide down the funnel into a test tube of alcohol. “When they emerge, that means they survived and are resistant,� Spencer said, displaying a funnel and a test tube with larvae.

QUICK, QUIET, CONVENIENT

Joe Spencer, a scientist with the Illinois Natural History Survey, displays a metal funnel and test tube with corn rootworm larvae as he explains the lengthy bioassay process to determine rootworm resistance. (Photo by Kay Shipman)

As researchers work to identify Bt-resistant populations, they also face another challenge of finding resistant rootworms to study, Spencer noted. That research will help develop effective strategies to reduce the spread of resistance and predict where it may occur.

Cover crop workshop scheduled for Sept. 5

Update information on cover crops will be provided from 5:30 to 7 p.m. Sept. 5 at the cover crop demonstration plots south of Progress City on the Richland Community College campus, Decatur. Reservations are requested. The meeting is being hosted by the Soil and Water Conservation Districts of Macon and Piatt counties, the University of Illinois Extension, the Natural Resource and Conservation Service (NRCS) and American Farmland Trust. There is no registration fee. Shalamar Armstrong and Corey Lacey of Illinois State University will discuss their cover crop research on nitrogen loss. Roger Windhorn, NRCS soil scientist, will talk about cover crop benefits to soil. Doug Gucker, U of I Extension, will review different cover crops. A panel of local farmers will share their experiences with cover crops. For more information and to make a reservation, call 217-877-6042 or 217-877-5670, extension 3 or go online to {web.extension.illinois.edu/dmp/}.

Beef nutrition field day topics

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The annual Orr Beef Research Center Field Day will begin at 5 p.m. Sept. 18 at the John Wood Agricultural Center on State Highway 104 in Perry. A meal will be served at no charge to those who take part in the discussions and tour. University of Illinois cow/calf researcher Dan Shike and graduate research assistants will update attendees on new methods of alkaline treatment applied to corn stover to increase use of the poorquality forage; grazing novel endophyte fescue grasses; and fetal programming with two levels of dried distillers grains. Graduate students will also discuss some onfarm trials investigating frequency of supplementation when cows are grazing during the summer slump and the effects of grazing corn residue on soil. A tour of the Orr Center will immediately follow the discussion. A freeze branding demonstration will be performed. For more information, visit {web.exten-sion.illinois.edu/oardc/} or contact Travis Meteer at 217236-4961 or wmeteer2@illinois.edu.

FROM THE COUNTIES

Page 13 Monday, August 26, 2013 FarmWeek

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UREAU — Farm Bureau will host a fall task force meeting at 6 p.m. Sept. 5 at the Farm Bureau building. Task forces will include: education, member relations, farm business, government and policy. Task force teams will meet twice yearly. Call the Farm Bureau office at 875-6468 to join a task force or for more information. ALHOUN — Farm Bureau will sponsor a booth at the Calhoun County Fair Sept. 8 to 10. Stop by and see us.

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EE — Farm Bureau will sponsor a legislative breakfast at 8:30 a.m. Sept. 9 at the Farm Bureau building. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net for reservations or more information by Sept. 6. ASSAC — Farm Bureau will co-sponsor an equine pasture management and nutrition meeting at 6:30 p.m. Tuesday at the Southern Illinois Equine Sale Barn in Goreville. ONROE — Farm Bureau will sponsor the Mon-Clair Corn Growers

test plot tour at 6 p.m. Sept. 4 at Matt Schaefer’s field in Monroe County. Dinner and program will follow at 7 p.m. at Sand Bank School. Call the Farm Bureau office at 9396197 for reservations by Aug. 30. EORIA — Farm Bureau will sponsor a Stroke Detection Plus health screening Tuesday in the Farm Bureau auditorium. Members will receive a discount. Call 877-732-8258 for reservations. • Prime Timers will meet for lunch and a tour at 11:30 a.m. Sept. 4 at the Hanger Too restaurant at the Peoria Inter-

national Airport. Call the Farm Bureau office at 6867070 for reservations. NION — Farm Bureau will sponsor two bus tours to Anna Quarries leaving at 8 a.m. and 10 a.m. Sept. 10 from the Natural Resources Conservation Service office. The tours will last one hour. Call 833-5666, Ext. 3, for reservations. ERMILION — Farm Bureau will sponsor an Agriculture in the Classroom open house from 3 to 7 p.m. Sept. 4 in the Farm Bureau auditorium.

AYNE — Farm Bureau will sponsor an antique tractor drive and tour of the Pioneer Soybean Production Plant at McLeansboro on Sept. 2. To register, go to{waynecfb.com}. HITE — View the results of the 2013 Farm Bureau crop tour at {whitecfb.com}.

impact statement on the proposed rule and gather input and recommendations from farmers and ag interests that would be affected. Davis’ measure would require the USDA and EPA to form a review panel to consider and report on recommendations. “There are bureaucrats in Washington, sitting behind their desks, who truly believe a milk spill is as toxic as the Exxon Valdez,” he told FarmWeek. “My bill will make sure agriculture is at the table when EPA comes up with these cockamamie ideas. We need to have common sense brought in.” RELATE provisions were included in the recently passed House Regulations from the Executive in Need of Scrutiny (REINS) Act. Sen. Mark Kirk, a Highland Park Republican, is sponsoring a companion bill — both measures are modeled after existing law authorizing the federal Small Business Administration to respond to rules that impact businesses. Milk had been subject to EPA’s Spill Prevention Control and Countermeasure program

since 1973, under the federal Clean Water Act. Milk butterfat technically fit the act’s definition of “oil,” though EPA in 2011 formally released large milk storage containers from spill rules if their contents met federal pasteurization standards. However, livestock interests continue to harbor concerns about EPA’s ag scope. The agency through October is

accepting comments on a proposed electronic Clean Water Act reporting process for concentrated animal feeding operations in states that issue National Pollutant Discharge Elimination System permits. Illinois Farm Bureau is monitoring the issue. Earlier this month, Sens. Charles Grassley, R-Iowa, and Joe Donnelly, D-Ind., introduced the Farmer Identity

Protection Act in response to EPA’s recent release of 80,000-plus livestock producers’ operational and, in some cases, telephone numbers and email addresses. IFB’s Resolutions Committee is eyeing possible policy addressing information privacy.

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“Fr om the counties” items ar e submitted by county Far m Bur eau managers. If you ha ve an e vent or acti vity open to all members, contact your county Far m Bur eau manager.

House bill requires USDA to consult with EPA BY MARTIN ROSS FarmWeek

When he learned that until recently, federal law equated milk and oil spills, U.S. Rep. Rodney Davis offered a literally tongue-incheek response to the U.S. Environmental Protection Agency (EPA): “Get a bunch of Rodney Davis cats.” The Taylorville Republican nonetheless is not amused by what he sees as a heightening regulatory threat to farmers. Davis argues “EPA does not understand agriculture,” and he seeks to educate and, when necessary, moderate regulators. He is spearheading the Review EPA’s Language on Agriculture and Thoroughly Engage (RELATE) with the Farm Act, which would require USDA to notify EPA if a proposed agency rule would have a significant impact on agriculture. USDA would draft an economic

Auction Calendar 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. Online Only Unreserved Auc. bigiron.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. 10 a.m. Farm Eq. and Livestock Eq. Auc. Margaret Conrady Estate, Mike Conrady, Tom Conrady, MIDDLETOWN, IL. Mike Maske Auction Service. Thurs., Sept. 5. 7 p.m. Fayette Co. Farmland Auc. Ley Deal Farms, Inc., VANDALIA, IL. Langham Auctioneers, Inc. auctionzip.com id #14627 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 Fri., Sept. 6. 10 a.m. Scott Co. Farmland. Charles R. Frost, WINCHESTER, IL. Worrell-Leka Land Services, LLC. worrell-leka.com Mon., Sept. 9. 10 a.m. Farm machinery. Joe Yenerich Est., PAW PAW, IL. Espe Auctioneering. www.espeauctions.com Mon., Sept. 9. 10 a.m. Tazewell Co. Farmland Auc. Doris M. Hymbaugh Trust, GREEN VALLEY, IL. Nehmelman Auction Co. topauctions24-7.com/nehmelman or auctionzip.com Mon., Sept. 9. 10:30 a.m. 319+/0 Ac. in Coles Co. CHARLESTON, IL. Sage Auctions. sageauctions.com Tues., Sept. 10. 10 a.m. Farm machinery. Darrel and Barbara Janssen, CORNELL, IL. Terry Wilkey Auction Service. Tues., Sept. 10. 10 a.m. Warren Co. Land Auc. Clyde W. Kneen Trust, MONMOUTH, IL. Van Adkisson Auction Service, LLC. vanadkisson.com or www.biddersandbuyers.com Tues., Sept. 10. 10 a.m. Mercer Co. Land Auc. Darrel D. Roberts Revocable Trust and Theresa Roberts Revocable Trust, ORION, IL. Hertz Ag Services. www.hertz.ag

PROFITABILITY

FarmWeek Page 14 Monday, August 26, 2013

Think globally, act locally when analyzing markets

A bumper sticker on a passing car with the phrase “Think Globally, Act Locally” recently caught my eye. This phrase usually references the environment and improving the health of the earth, but it made me consider our grain markets, world produc- Bryce Stremming tion and how these areas continue to evolve. The “act locally” portion of the phrase is easy. We watch the U.S. corn, soybean and wheat balance sheets and U.S. weather for influences on futures prices and basis, and make marketing decisions accordingly. We can’t forget the “think globally” portion of the phrase though, as we analyze markets and price objectives. Referencing the last 10 years, U.S. production and usage have been growing even with variable weather, and we are on track to grow a record corn crop this year and a soybean crop in the top three. At the same time, areas outside the U.S., especially South America and Ukraine, have made great strides in output as higher prices have attracted more production. The U.S. remains the world’s premier corn producer as we are expected to produce BY BRYCE STREMMING

37 percent of the world’s corn in 2013 and 2014. Our closest competitor is China, producing 22 percent with Brazil and Argentina seeing production rise dramatically by 1.6 billion bushels since 2003-2004. Ukraine corn production has increased 870 million bushels over the same time period. The U.S. is expected to account for 31 percent of world soybean production, but Brazil and Argentina will account for 49 percent. Brazil and Argentina’s soybean production has increased 2 billion bushels over the last 10 years. The Western Hemisphere produces 85 percent of the world’s soybeans. At the same time producBY DANIEL GRANT FarmWeek

Weather variations and climate change have been and likely always will be two of the top challenges in farming. But climate changes also can present opportunities in agriculture, such as expanded growing seasons in some parts of the country, according to William Hohenstein, director of USDA’s Climate Change Program Office. USDA is making plans for how it can help farmers prepare for climate change and react to it in order to ensure adequate food production for the future.

Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. $33.67-$48.00 $41.13 40 lbs. $50.00-$61.00 $55.84 This Week 77,155 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 110,527

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $91.50 $96.01 -$4.51 $67.71 $71.05 -$3.34

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

This week $123.94 NA

Prev. week $124.11 $124.00

tion has been increasing, so has world demand. World corn demand has risen 11.1 billion bushels and soybean demand has risen 2.9 billion bushels over the last 10 years. Competition has increased to meet

this demand. With the larger grain trade and more consumption, following world stocks-to-use ratios continues to gain importance regarding gauging market strength. The attached chart reflects

The Ag Department recently announced it plans this fall to select sites around the country to establish regional hubs for risk adaptation and mitigation to climate change. The hubs will provide technical support, assessments and forecasts, and outreach and education for farmers. “We’re identifying risks and opportunities (associated with climate change),” Hohenstein recently told participants of the Illinois Farm Bureau Marketers to Washington tour. USDA plans to work with seed companies and universities to do everything from develop new seeds best suited for each region of the U.S. to improve the quality of weather forecasts. “We’re trying to get better information about risks and vulnerabilities into farmers’ hands,” Hohenstein said. “We’re trying to make sure it’s research driven.” The global temperature has been increasing about two-

tenths of a degree per decade, according to Hohenstein. “Those rates are expected to accelerate next century to sixtenths of a degree per decade,” he said. The climate changes generally could lead to wetter, longer growing seasons and increased pest distribution in the Eastern U.S. Farmers in the Western U.S. may have to deal with higher temperatures, increased fire and drought stress, and potential water shortages, Hohenstein noted. “Climate change risk is not the same in every region,” he said. “Farmers (to date) have done a good job adapting to changes we’re seeing on the ground.” The use of improved seed genetics, irrigation systems to counter drought and tiling systems to deal with floods are examples of actions farmers have taken to minimize weather risks. Last year was a good example of how farmers can adapt to climate changes. The U.S.

endured its most severe drought in a quarter century in 2012 and farmers nationwide still produced the eighth-largest corn crop and seventh-largest soybean crop on record. USDA’s plan to mitigate impacts of climate change are part of a broad effort by the Obama Administration to deal with the issue. That plan includes expanding the use of renewable energy to 20 percent, enhancing forests (which currently offset about 15 percent of greenhouse emissions) and engaging countries around the world to take similar actions. “China replaced the U.S. as the largest greenhouse gas emitter and India may surpass us, too, so international engagement is important,” Hohenstein added. “It doesn’t matter what the U.S. does if other countries don’t act.” For more information about USDA’s climate change plan, visit the website {usda.gov/oce/climate_change/}.

USDA surprised many traders Friday when it slashed the number of cattle placements in feedlots by 10 percent compared to last year. USDA in its August cattle on feed report estimated placements in feedlots during July totaled just 1.72 million head compared to 1.92 million head a year ago. Overall, cattle and calves on feed as of Aug. 1 totaled 10.03 million head, down 6 percent from the same time last year. “I was surprised,” Rich Nelson, director of research at Allendale Inc. in McHenry, said of the placement estimates. “These are incredibly tight numbers.” Marketings of fed cattle during July totaled 2 million head, up 5 percent from a year ago. The report not only pointed toward tighter market-ready supplies of cattle near term, but also a very short supply situation

by the first quarter next year. “This will tighten up first quarter slaughter numbers even more than expected,” Nelson said. “We were expecting a 6 percent drop in year-over-year cattle slaughter numbers, but now it could be 8 to 10 percent, which is huge.” Nelson predicted cattle prices will begin to rally from summer lows and by the end of the year Southern Plains-based prices could reach $128 per hundredweight for cash cattle. Cattle prices in the first quarter next year could skyrocket to the mid-$130s with a chance February futures could touch $140, Nelson noted. The price gains, if realized, would be good for the cow/calf sector, but could hurt cattle feeders and consumer demand for beef. “Consumer demand (for

beef) has been flat this year,” Nelson said. “The industry will have some problems pushing beef with the severe price increases in the months to come.” — Daniel Grant

Bryce Stremming is a senior commodity risk consultant for MID-CO Commodities, Inc. His email address is bstremming@midco.com.

USDA plans to help farmers adapt to climate change

M A R K E T FA C T S

Recipts

these ratios over the last 16 years. Note that corn/coarse grains remain at a relatively tight level. Soybeans are improving, rice is steady, and wheat is declining. The market is becoming more comfortable with these levels. We most likely need wheat and soybeans down near the 20 percent level, while corn/coarse grains remain steady before the market becomes concerned. Still, it is worth your time to track world stocks-to-use ratios as part of your market knowledge tool kit.

Change -$0.17 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 $155.59 $152.36 $3.23

Lamb prices Slaughter Prices — Negotiated, Live, wooled and shorn 100-155 lbs. for 108-138 $/cwt. (wtd. ave. 118.04); load wooled 184 lbs. for $114/cwt. (wtd. ave. $114/cwt.)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8/15/2013 5.3 33.8 7.1 8/8/2013 3.4 24.3 15.3 Last year 21.6 23.4 22.3 Season total 1308.2 274.5 665.8 Previous season total 1332.9 214.0 1475.4 USDA projected total 1330 1075 700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Tight feedlot supplies could ignite bullish cattle run

PROFITABILITY

Page 15 Monday, August 26, 2013 FarmWeek

CASH STRATEGIST

Soybean supplies aren’t tight

Amid the angst and uncertainty about the size of our soybean crop, the implications of last spring’s larger South American crops have largely been forgotten. The combined Brazilian and Argentine crops were 24 million metric tons (mmt) larger than the prior year, a 15 percent increase. Paraguay and Uruguay crops were larger as well. As a result, the supply of soybeans at the three major exporters as we begin the harvest of our new crop should be more than 12 mmt larger than they were a year ago, a 31 percent increase. Even though we aren’t likely to have the great crop everyone imagined earlier in the year, it still has good potential to be moderately larger than last year’s. The combination should boost the total beginning supply 17 mmt. Using an 8 percent increase in soybean crush and exports in these three countries, it should leave an extra 10 mmt of soybean stocks as the South American harvest begins. In the last two weeks, there has been talk that supplies could get as tight as last year if our yields decline from the current forecasts. But by our calculation, that would suggest

the yield of the crop we are about to harvest would have to fall 1 to 2 bushels below last year. That’s a 4- to 5-bushel drop from the August projection. While not impossible, the odds of that happening aren’t good. But by far, the most negative aspect of potential soybean fundamentals comes this winter/spring with the new South American crop. The general expectation is that plantings will increase 2 1/2 to 3 percent, mainly due to the shift in the soybean/corn price relationship. The November soybean/December corn futures ratio has been more than 2.5 to 1 for a few weeks, and currently is at 2.8 to 1. If they have average yields, production from the four primary South American producers could reach 156 mmt. And, something as large as 158 to 159 mmt is possible. That’s 5.75 to 5.85 billion bushels. Using 55 mmt and 87 mmt Argentine and Brazilian crops, their ending stocks and our potential March stocks, the supply of soybeans available to the world from the three exporters could reach 192 mmt, maybe even more. Potential for seeing supplies that large would impact end user buying programs starting late this fall when their planting begins. If conditions look good, buyers may start to become very conservative, waiting for lower prices to extend coverage.

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Corn Strategy

ü2012 crop: There are still occasional “basis pushes” for old crop corn. If you still have corn, and have one of these, jump on it. With the southern harvest beginning, spot cash prices should soon quickly gravitate to new crop levels. Given that, use strength for catch-up sales. ü2013 crop: The midweek collapse indicated new-crop prices don’t have much upside potential. But for now, the price trend might have turned sideways. Use rallies to $4.80 on December futures to make catch-up sales. vFundamentals: Even though the corn production estimate is likely to decline from USDA’s August forecast, the situation is tilted against the possibility it will drop enough to push ending stocks below 1.5 billion bushels. That’s simply not a level that will spark end user buying, at least in enough quantity to lift the market. About the only thing that might change the situation would be an unusually early frost, and that possibility looks remote. Meanwhile, corn is facing a lot of competition in the world trade.

Cents per bu.

Soybean Strategy

ü2012 crop: Short-term weather anxieties could carry old-crop prices slightly higher, but we are seeing increased basis weakening. As harvest nears, the premium old-crop prices have over new will dissipate. Use this rally to wrap up sales. ü2013 crop: The premium nearby contracts have to distant ones is telling you not to store soybeans this year, especially if it has to be done commercially. Depending on the price structure when you harvest, it may pay to sell soybeans off the combine. As it is, use this rally to make catch-up sales. vFundamentals: The generally low pod counts across the heart of the Corn Belt reinforces the notion the U.S. soybean yield will fall further yet. Nevertheless, it’s still much too soon to foresee a crop that is smaller than last year’s. Last week’s rains in parts of the Midwest did improve prospects for some of the poorer areas. And

if more general rains come in the next couple of weeks, potential would be helped, albeit yields would still fall somewhat.

Wheat Strategy

ü2013 crop: Downside price risk looks relatively low. The carry in the futures market makes wheat the most attractive grain to store. When we do make our next sale, we may recommend a forward bid or a hedge-to-arrive contract for wheat stored at home. But for now, wait for Chicago December futures to rally to $6.75 before considering any sales. vFundamentals: Despite

U.S. wheat still seeing a lot of competition for business in world trade, our export demand remains relatively robust. In fact, demand for wheat at most exporting countries has been good this summer, an event that has been enhanced by the lower prices. Even though world output is expected to reach a new record, demand is expected to jump to a new record as well. We also suspect the availability and the lower prices are stimulating some end users to rebuild depleted inventories. But until production problems affect the crop somewhere, wheat prices may only have modest rallies at best.

PERSPECTIVES

FarmWeek Page 16 Monday, August 26, 2013

Are we making conservation grade here?

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t’s back-to-school time in Illinois, but students aren’t the only ones being graded. Midwest farmers are being evaluated on their ability to reduce nutrients moving into the Mississippi River system and ultimately to the Gulf of Mexico. There are claims we have failed or at least are failing to show a positive change toward nutrient reduction. We have seen successful projects that prove we can make a difference, but the big picture shows that we have not yet made a significant impact. I’m not ready to throw in the towel and accept failure. I think we have built some great new partnerships and have made some significant strides. Maybe I’d IVAN be willing to accept an DOZIER “incomplete” grade, but what I don’t want to see is a “withdrawal.” This past year was an eye-opener for us in terms of conservation programs and their use in Illinois. Even though we received funding comparable to last year, and last year was down from the year before, we found ourselves down to the last minute of budget obligation before all unused funds were redistributed to other states in need. There were even a few pools of targeted funds, such as the high profile Mississippi River Basin Initiative, which had to be returned. The reason? We did not have enough applicants in those watersheds who were seeking conservation assistance. As a result, vital conservation funds were lost from our state. Feedback from employees and farmers cited the fits and starts of this year’s farm law and budget process as major contributing factors that led to the lack of participation. They said there were

too many uncertainties that made them uncomfortable, such as availability of programs or whether funds would be secure if they entered into contracts. By the time the program and funding picture cleared, many potential participants thought it was too far into the season to go through the process of applying. The fact is, funding from conservation programs is not the only way to get conservation on the land. Those who can implement conservation practices without assistance are to be commended. But for many, the money set aside for conservation is important. It helps offset the risk and expense for management changes and implementation of conservation practices. We are fortunate to have seen an increase in programs and funding for voluntary conservation programs over the last 15 years. Working lands programs, such as the Environmental Quality Incentive Program and the Conservation Stewardship Program, provide ways for farmers to maintain high levels of productivity without degrading the natural resource base. The results are positive — not only for the individual farm but for the public too — ensuring we maintain a healthy food supply and enjoying the benefits of balanced wildlife populations and clean air and water. While it is frustrating to see conservation negatively impacted by the lack of clear farm policy, I think we add to the problem if we let the ‘nuts-and-bolts’ of federal programs turn into unnecessary obstacles. I’d like us to focus on identifying our needs and the needs of the land first. And then use programs as a way to help reach our goals. I’ve also heard that some people are skeptical about the legal stipulations of our contracting documents, which can further fuel apprehension to participate.

For those who share that concern, I’d like to boil down the contracting language to this — if you implement conservation practices according to NRCS standards and according to an agreed-to schedule, you will receive a pre-established payment. All the amounts and dates will be known and spelled out before you even sign the contract. If, however, you are unable to comply, you are given a reasonable amount of time to correct the problem. If you are still unable to comply but you made a good faith effort, the worst thing that will happen is you will be required to repay funds that were paid to you. If you refuse to make a good faith effort, the worst thing that happens is you will be required to repay funds paid to you plus liquidated damages equal to 10 percent of the entire contract. If you don’t think NRCS made the correct call on your individual circumstance, you have the right to appeal locally AND to an independent agency. I can hold up my head and look you in the eye with that deal. It’s easy to apply for the program, too. You can sign up for federal conservation programs with no obligation at any time during the year. But you do need to get that part taken care of early to make sure you meet eligibility requirements. I’m not suggesting that anyone jump blindly into a program without understanding the requirements, but I will say

that our program contracts aren’t as daunting as they might appear. Thousands of farmers have used our conservation programs. Those programs document our success to implement conservation practices that work. However, I am afraid we lost out on an important opportunity this last year. And I’m concerned that if we don’t make changes now, we may not have the flexibility to continue with a strong and fully funded system of voluntary conservation programs in Illinois. I want our report card to show that Illinois farmers have stepped up, made the grade, are concerned about our natural resources and can take care of them voluntarily. NRCS is ready to work together with you and make it happen.

Ivan Dozier is the state conservationist for USDA’s Natural Resources Conservation Service for the State of Illinois.

Crop insurance — the new face of U.S. farm policy From walking on soil baked nearly into concrete during the worst drought in more than 50 years in 2012, to dredging across flooded fields this soggy spring, farmers continue to face uncertainty. And that’s just weather. In the last decade, corn ANDREW prices have BOWMAN been less than $2 and more than $8 per bushel, land prices have nearly tripled, more regulations point to greater expense without offsetting revenue, and farm policy has evolved from focusing on price supports and direct payments toward a more market-oriented risk management tool called crop insurance. Crop insurance is a publicprivate partnership whereby farmers purchase policies and only receive a payment if there

is a documented loss. Given our new “normal” characterized by volatility everywhere — in weather, markets and regulations — farmers would struggle without access to crop insurance, a vital tool for rural America and the new face of farm policy. The farm bill, which will guide American agriculture for the next five years, was recently debated in Congress. Current proposals eliminate direct payments — cash subsidies made based on historical figures regardless of need. Price support mechanisms still exist, but at much-reduced levels. These programs are less necessary because crop insurance has assumed the role as the primary risk management tool for farmers. Crop insurance saves taxpayers’ money. When disasters struck in the past, recovery was paid for completely by taxpayers. And that doesn’t consider the other trade-distorting

supply controls and price support policies enacted in response to farm crises. Last year, in contrast, when farmers were decimated by drought, many had crop insurance and didn’t need a disaster bill to help them plant this year. It is a vast improvement over the price support system and direct payments of the past. But farmers must put “skin in the game.” Many complain about the money lost over the years purchasing crop insurance. Moreover, farmers lose a hefty deductible — 15 percent minimum — before any claims are paid out. Last year, this deductible was $12.7 billion. Coupled with $4.1 billion in premiums paid last year, farmers lost or paid nearly $17 billion before crop insurance kicked in. It’s a major expense for farmers, but one they’re happy to pay for because it provides something this new “normal” rarely allows: peace of mind.

Crop insurance helps young farmers because it serves as “stop-loss” collateral to back credit, a crucial transition tool given the high capital costs of farming. In this sense, it is a bridge to the future for America’s farmers. Crop insurance also supports farmers’ working capital, allowing cash to flow back into the economy. Paying down debt and investing in newer, more sustainable technologies faster is possible because crop insurance covers the risk of big losses. Most importantly, crop insurance allows market forces to work; farmers can fail or succeed. It protects “good” farmers — those who apply new technologies, manage risk and preserve soil — from circumstances beyond their control, like last year’s drought or a market collapse. In contrast, it allows “bad” farmers to fail. The free market still works, just with a buffer that ensures

stability in an unstable environment. But in light of budget concerns, why does agriculture warrant crop insurance while other sectors lack such tools? Unlike other business owners, farmers negotiate with the whims of Mother Nature, cater to consumers in foreign and domestic markets, and compete with farmers two miles up the road, farmers two states over and farmers outside our nation’s borders. Is crop insurance perfect? No. But right now, crop insurance is the best risk management tool we have. It helps farmers survive the worst of times, reduces costs to taxpayers and allows market forces to work. It’s the new face of farm policy.

Andrew Bowman is a fifth-generation farmer and Knox County Farm Bureau member, who lives near Oneida. He is a Certified Crop Adviser.

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