THe U.S. GRainS Council in the past has worked to build a market for DDGs. Now it hopes to make certain there is enough supply to meet demand. ...............5
THURSDaY RainS brought welcome relief in many areas of the state, but in some parts high winds caused drought-stressed corn to topple over. .......................7
THe U.S. caTTle HeRD is at its lowest level since the 1950s. But beef supplies remain high as producers continue to liquidate their animals. .................................18
Monday, August 20, 2012
Two sections Volume 40, No. 34
Boehner ready to bring up House farm bill? BY MARTIN ROSS FarmWeek
U.S. House Speaker John Boehner (R-Ohio) appears ready to bring a new farm bill to the House floor, U.S. Rep. John Shimkus told farmers in Springfield last week. Shimkus, a Collinsville Republican who met with the speaker Aug. 13, said Boehner now is “committed to moving a bill” despite the Ohioan’s doubts about its potential passage. House members rejected a proposal in July merely to extend the current farm bill for a year. Shimkus noted Boehner’s role with the White House and last year’s deficit “super committee” in arriving at $35 billion in long-term savings under the House Ag Committee’s farm bill proposal. He stressed the House plan’s $14 billion in commodity program cuts and elimination of direct and Average Crop Revenue Election payments and other programs. The proposal also offers $6 billion in taxpayer savings through conservation program consolidation while improving program delivery and ensuring better environmental “return on investment,” Shimkus said. At the same time, he argued the current drought represents “why we have a farm program
and why we have a crop insurance process.” “(Boehner) understands risk management,” Shimkus told his district ag advisory board. “I think there are issues about how he’s voted on ag bills in the past, but he definitely understands that any businessman has to manage risk. “If you don’t have an insurance program, then you have
disaster payments. And disaster payments are a lot bigger and less accountable than having an insurance program in which producers have skin in the game.” Shimkus acknowledged the role food and nutrition programs will play in floor debate, citing an “alliance” of urban and suburban colleagues who support farm bill passage with a
goal of “continuing to grow the food stamp program.” He nonetheless defended the House’s proposed $16 billion in food and nutrition program cuts — roughly four times the level of Senate-proposed reductions. Shimkus noted nutrition programs account for nearly 80 percent of total farm bill spending, arguing that “if
you’re going to get $35 billion in savings, you have to go to where the money is.” “The media has actually done a good job of highlighting the abuse of the (food stamp) program,” Shimkus maintained. “Stories have been written about people selling the cards and using them to buy drugs, or buying birthday cakes with them.”
GRAY AGRONOMY DAY
Periodicals: Time Valued
University of Illinois Agronomy Day participants head for cover as storm clouds sweep over the South Farms. Last week, for the first time in recent memory, Agronomy Day field activities were stopped due to lightning. Severe storms with high winds and hail swept across Central and Southern Illinois Thursday. For more on Agronomy Day, see page 13. (Photo by Kay Shipman)
Purdue study questions impact of RFS2 waiver
A new Purdue University report suggests a reduction in federal ethanol targets might not have as great an impact on corn supply and price as livestock interests have believed. Purdue economists analyzed potential impacts of a current request to waive all or part of 2013 corn ethanol fuel use requirements under the federal Renewable Fuels Standard (RFS2). Currently, the RFS2 calls for 15.3 billion gallons of domestic ethanol use in 2013. The study considered existing ethanol stocks, drought conditions, market reac-
tions, and “unintended consequences” of an RFS2 waiver. It evaluated various corn and crude oil price and RFS2 scenarios that might affect ethanol demand in the year ahead. Arkansas Gov. Mike Beebe and North Carolina Gov. Beverly Perdue have joined livestock interests in petitioning for an RFS2 adjustment by the U.S. Environmental Protection Agency (EPA). EPA must respond to a gubernatorial request within 90 days. But in a Thursday webinar, Purdue study co-author Wally Tyner argued “the econom-
FarmWeek on the web: FarmWeekNow.com
ic harm has been done by the drought.” EPA’s decision will determine “who bears the costs of the drought,” the study concluded. Corn prices are substantially higher, and “EPA can’t change that,” Tyner said. “(It) can only distribute that (the cost) among the affected parties,” the energy policy specialist said. Depending on the degree to which EPA might decide to waive RFS2 requirements, a waiver could reduce corn prices by nothing up to $1.30 per bushel, Tyner projected. See RFS2, page 5
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, August 20, 2012
Quick takes PENSION REFORM ON TAP — State legislators were meeting in Springfield, but had not voted on a proposal to reform the state pension system by FarmWeek press time Friday. However, a proposal to abolish pensions for future state legislators had surfaced. Coverage of the special session and any action taken will appear in the next issue of FarmWeek. COURT BACKS E15 USE — A Washington U.S. appeals court sided last week with the Environmental Protection Agency (EPA) in its approval for E15 (15 percent) ethanol fuel for model year 2001 and newer light-duty vehicles and flex-fuel vehicles. Since an initial E15 waiver was filed in March 2009, vehicles were tested using E15 for a combined six million miles, health effects data on E15 was collected and approved, and a first-of-its-kind “misfueling mitigation” plan was required and approved in order for retailers to offer E15. “Today’s decision is an important step forward in the nation’s quest to diversify our nation’s fuel supply,” Renewable Fuels Association President Bob Dinneen said. “Adding an E15 option alongside E10 and higher ethanol blends allows consumers to make the fuel decisions that work best for them and their vehicle. Ethanol has a 30-year track record of safe and effective use in the marketplace and that record will continue.” Additional ethanol use will help lower pump prices, create U.S. jobs, and “accelerate the commercialization of new biofuel technologies,” Dinneen argued. NORTHERN COUNTY FBs MERGE — The Winnebago County Farm Bureau and Boone County Farm Bureau have successfully completing a merger. The membership of both county Farm Bureaus at meetings earlier this month overwhelmingly approved the merger. The name of the new organization effective Sept. 1 will be the Winnebago-Boone Farm Bureau. The first board meeting of the new organization will be held in early September. All communications prior to Sept. 1 should be d i r e c t e d t o t h e t wo i n d i v i d u a l c o u n t y Fa r m Bureaus. After that date, all communications should be directed to the new Winnebago-Boone Farm Bureau at 1925 S. Meridian Rd., Rockford. The email address is wcfb@winnebagocfb.org. The phone number is 815-962-0653. Both Roger Christin, manager of the Winnebago County Farm Bureau, and Ann Cain, manager of the Boone County Farm Bureau, will jointly manage the new organization through the end of the year.
(ISSN0197-6680) Vol. 40 No. 33
August 20, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2012 Illinois Agricultural Association
STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
government
Estate tax solution crucial to cattle sector BY MARTIN ROSS FarmWeek
The State Fair provides perhaps the most vivid public display of the capital invested by Illinois cattlemen, from some of the state’s top show animals to the ribeye sandwiches served up to urban fairgoers. It’s an investment Jeff Beasley and those like him seek to protect and pass on. It’s an investment at risk if Congress fails to move key tax measures by year’s end. A temporary $5 million individual/$10 million-per-couple estate tax exemption and 35 percent tax rate expire Dec. 31, Jeff Beasley leaving farm families with more than $1 million in holdings potentially open to tax liability at a 55 percent rate. That could impact “anybody with any significant acreage or a significant number of cows,” said Beasley, a Creal Springs farmer and Illinois Beef Association president. U.S. Rep. John Shimkus, a Collinsville Republican, anticipates that following November elections Congress will extend a variety of soon-toexpire “Bush-Obama” tax relief measures for another year. Shimkus cited the “death tax” as one of three major issues for farmers throughout his district,
with farm policy and the federal Renewable Fuels Standard being the other two. He said he was shocked by Senate Finance Committee failure to address the estate tax in July tax proposals, calling a return to the $1 million exemption “catastrophic, not just to family farms but to small machine shops and locally owned businesses.” “I think (lawmakers) are probably going to kick the can down the road again,” Beasley told FarmWeek last week during State Fair Ag Day activities. “But I can assure you this: When we go back to D.C. this fall, we will be talking about the estate tax, urging them to give us some permanent relief so folks can have some security back on the farm. “When you put it all on a balance sheet, the net worth of these individuals can be substantial. If this estate tax is not fixed long-term, that concerns me. Congress keeps putting it off and putting it off.” Shimkus suggests a current political “class warfare debate” would muddy tax discussions through the elections. The estate tax traditionally has provided merely “nominal” revenues to the U.S. Treasury, but a drop in the exemption and higher tax rates could cost some 52,500 U.S. families as much as $40.5 billion in 2013, he said. Shimkus chastised congressional leaders for failing to acknowledge that potential impact. “Shame on them,” he said. “They know better.”
Looming farm bill expiration impacts research, communities Without prompt congressional action, drought-stressed communities, prospective homeowners, and consumers could be left without key shortterm resources, federal agency representatives warn. Meeting with farmers last week in Springfield, USDA Rural Development (RD) Housing Program Director Barry Ramsey stressed timely farm bill passage “directly affects rural development programs quite a bit.” While differences in Senate and House farm bill proposals must be resolved, Ramsey noted new provisions would update designations for rural areas eligible for RD programs and funding. He noted proposals to extend community facility-business program eligibility to communities of up to 50,000, vs. current 10,000 or 20,000 maximum population limits. The Senate plan would extend housing program authority for another 10 years. Without September farm bill passage, 923 towns — including Carbondale, Chatham, Charleston, Freeport, Morris, Plano, and Rantoul — would be ineligible for RD first-time home-buyer financing help beginning Oct. 1. Ramsey noted discussion of
housing program reauthorization possibly being included in a six-month continuing federal
“Obviously, it’s the authorizing piece of legislation that says we exist,” Cotta told
‘We see increased demand for our utility programs because of the drought and the aging infrastructure in many rural communities.’ — Barry Ramsey USDA Rural Development Housing Program director
budget resolution. However, he warned short-term resolutions normally allocate little money to individual states. “We see increased demand for our utility programs because of the drought and the aging infrastructure in many rural communities,” he added. “The drought’s put excess demand on their water treatment plants and water distribution systems. We see funding needs increasing.” A new farm bill also is critical to setting ag research priorities aimed at addressing existing farm concerns and consumer needs such as energy security, food safety, and nutrition, according to Michael Cotta, Bioenergy Research Unit leader at the USDA Ag Research Service’s (ARS) National Center for Ag Utilization Research (NCAUR) in Peoria.
FarmWeek. “But it also provides some framework and direction in how we try to prioritize our programs. “That’s generally done at a higher level than our laboratory — we get that direction through ARS. They prioritize the things we do based on the direction they get from things like the farm bill.” Cotta, whose center relies on annual congressional appropriations, sees current proposals leaning instead toward beefing up competitive research grant funding. For example, the House Ag Committee proposes using competitive funding to address veterinary shortages in innovative ways. Cotta nonetheless argues “anything that fosters investment in research is a good thing.” — Martin Ross
Page 3 Monday, August 20, 2012 FarmWeek
ILLINoIs sTATE FAIr
Quinn signs ag bills at Illinois State Fair
Karen Fraase, agricultural marketing representative with the Illinois Department of Agriculture (IDOA), chats with former ag director and ag secretary John R. Block at the Illinois State Fair. The IDOA administration building was named the John R. Block Building in legislation signed at the fair by Gov. Pat Quinn. (Photo by Ken Kashian)
Illinois State Fair Ag Day
Block recalls IDOA challenges, fun BY KAY SHIPMAN FarmWeek
China offered tantalizing export opportunities for Illinois farmers, so then-Gov. Jim Thompson and his state agriculture director, John Block, pursued the Asian market. Block ranks a state ag trade mission to China in 1978 among his biggest accomplishments as state ag director, a post he held from 1977 to 1981. On Ag Day at the Illinois State Fair, Gov. Pat Quinn signed legislation naming the Illinois Department of Agriculture (IDOA) administration building after Block. “Our challenges were to keep exports flowing,” Block told FarmWeek. Thompson worked with China, but sent
Block, Harold Steele, and other state ag leaders on the mission to build relationships and further trade. Block called working with Thompson “a pleasure.” “He was such a big supporter of the Illinois State Fair. He was out there every day,” Block recalled. The former ag director said he was humbled by the naming honor and credited his IDOA staff for working on the administration building project during his tenure. Ironically, Block just missed serving as director in the building that will bear his name. “They almost had it done when I was there, but then I was whisked away to Washington,” he said. He was named agriculture secretary by President Ronald Reagan in 1981.
MAKING THE PLEDGE
Gov. Pat Quinn signs a pledge to eat nutritious food and do 60 minutes of physical activity each day during the Illinois State Fair last week. Looking on are student ambassadors Angelique Livingston of Burr Ridge Middle School and Alejandro Guadarrama of Waukegan’s Juarez Middle School. The Midwest Dairy Council is promoting a nutritious diet and activity through a “Fuel Up to Play 60” school program. The dairy industry has awarded more than $175,000 to Illinois schools for the program. (Photo by Ken Kashian)
Gov. Pat Quinn signed legislation promoting rural safety, fertilizer research, and renaming the Illinois Department of Agriculture (IDOA) administration building on Ag Day last week at the Illinois State Fair. Illinois Farm Bureau supported all the legislation signed into law. HB4598 was a legislative initiative of IFB. The measure increases the current penalty from $25 to $75 for improper use of slow-moving-vehicle (SMV) emblems. It also expands the definition of what is an illegal use beyond use in a road rightof-way. Under the new law, an SMV emblem may be used only on an animal-drawn vehicle, a farm tractor, an implement of husbandry, or certain special mobile equipment. HB5539 creates the Nutrient Research and Education Council, a new private entity made up of grower and fertilizer industry representatives that will manage nutrient research, education, and water quality efforts. Under the new law, money from fertilizer licensing, registration, and inspection fees will go directly to IDOA for fertilizer quality and safety programs. A separate portion will be designated for the Nutrient
Research and Education Council. HB5540 renames the IDOA administration building as the John R. Block Building after the former state ag director and former secretary of agriculture. (See related story) HB5642 authorizes annual permit fees for concentrated animal feeding operations (CAFOs). The permit fees will vary depending on the size of the operation. CAFOs with 1,000 or more animal units will pay a $750 fee; those with between 300 and 999 units, $350; and those with fewer than 300 units, $150. IFB, Illinois Pork Producers, Illinois Beef Association, and Illinois Milk Producers Association negotiated with the Illinois Environmental Protection Agency to clarify that a permit would be required only if a livestock farm is discharging “to a water of the United States.” Farmers will not be required to have a National Pollutant Discharge Elimination System (NPDES) permit or pay a fee if there is no such discharge or if they correct a situation that may have caused a discharge. The number of farms that will be required to have a permit is expected to be limited. — Kay Shipman
IAITC receives AT&T donation on Fair Ag Day at the State Fair Representatives from AT&T presented Illinois Agriculture in the Classroom (IAITC) with $20,000 last week during Ag Day at the Illinois Sate Fair. As a result, IAITC will be able to distribute the Illinois agriculture school calendar to more than 25,000 classrooms. “The Illinois agriculture calendar works seamlessly in conjunction with other IAITC materials,” said Kevin Daugherty, IAITC education director. “At AT&T, we recognize that our people are our most critical resource. So we invest in education because we want to ensure the next generation of leaders and workers is prepared to meet the great challenges of a global economy,” said Paul La Schiazza, president of AT&T Illinois. He said the company supports IAITC as a means to “ensure that the next generation fully appreciates the benefits of agriculture to the people and the economy of Illinois.” “It’s a welcome sign to have a partner like AT&T who sees how making that connection from farm to fork is so vital today, particularly for the livelihood of our agriculture community,” said Susan Moore, IAA Foundation director. IAITC is the top funding priority of the IAA Foundation, Illinois Farm Bureau’s charitable foundation. The foundation raises money to help implement IAITC programs and provide teaching resources across the state.
FarmWeek Page 4 Monday, August 20, 2012
the drought
Meat purchases planned; all counties designated BY MARTIN ROSS FarmWeek
Following up on efforts to open haying and grazing options for drought-stricken cattlemen, USDA last week offered added support for hog and other livestock producers. Ag Secretary Tom Vilsack announced plans to purchase a maximum $100 million in pork, $10 million in catfish, $50 million in chicken, and $10 million in lamb products for federal food/nutrition programs, including food banks. USDA also declared all Illinois counties eligible for any primary federal disaster relief. Added to the list were Bureau, Cook, DeKalb, DuPage, Grundy, Henry, Kane, Kankakee, Kendall, Knox, Mercer, Putnam, Stark, and Will counties. USDA also granted “contiguous county” designation to neighboring Boone, Ford, Fulton, Henderson, Iroquois, Lake, LaSalle, Lee, Livingston, McHenry, Marshall, Ogle, Peoria, Rock Island, Warren, Whiteside, and Winnebago counties. Through the Emergency Surplus Removal Program, USDA can fund meat and poultry purchases during natural disasters. Beyond aiding drought-stricken livestock farmers, USDA reports new meat purchases are aimed at helping bring meat supplies into line with demand while “providing high-quality, nutritious food to recipients of USDA’s nutrition programs,” such as school lunch and breakfast programs, distributions to Native American reservations, and aid to disaster victims. Purchases should help mitigate declining prices and “stabilize market conditions,” Vilsack said. Illinois Pork Producers Association industry relations director Tim Maiers deemed USDA’s announcement “a piece of good news.” “Anything that can be done to help producers struggling with the situation with feed availability and prices will help,” Maiers told FarmWeek. “Going through the federal food assistance programs is a good way to do that.” USDA also OK’d shifting $14 million in unoblig-
ated program funds into the Emergency Conservation Program to help move water to livestock in need, access emergency forage, and rehabilitate severely drought-impacted lands. Livestock and legislation Meanwhile, producers are awaiting congressional
Jodie Tate, left, deputy director of USDA’s Risk Management Agency Springfield four-state regional office, outlines this season’s crop insurance requirements and claims procedures as U.S. Rep. John Shimkus, a Collinsville Republican, takes notes. Illinois USDA representatives covered current drought efforts during a meeting of Shimkus’ Agriculture Advisory Board last week in Springfield. (Photo by Martin Ross)
action on cattle relief measures. USDA has released a wide range of Conservation Reserve Program lands for haying and grazing, but the Senate has yet to vote on a plan to temporarily reactivate the 2008 farm bill’s Livestock Indemnity and Livestock Forage Disaster programs. Farmers also seek September House passage of 2012 farm bill proposals that would restore those programs, which expired last fall. In an Illinois State Fair interview, Illinois Beef Association President Jeff Beasley said, “We would be happy with the Senate bill; we would be happy with the proposed House bill the Ag Committee has passed.” Beasley sees the odds of a second round of signifi-
USDA lab eyes strategies to fight mycotoxins Studies at USDA’s National Center for Ag Utilization Research (NCAUR) in Peoria someday could enable growers to fight aflatoxin in the field or the bin. NCAUR’s bacterial foodborne pathogens and mycology research unit focuses largely on fumonisin and trichothecene toxins produced by fungi in wheat or other small grains, unit research leader Todd Ward told FarmWeek. But that research has provided key insights into the forces behind toxin production, environmental or biological “signals” that spur fungal activity in host crops, and, potentially, “other kinds of signals we could introduce to inhibit mycotoxin production,” Ward said. One of NCAUR’s more promising current projects focuses on using yeast organisms essentially to “detoxify” affected plants, feed, or food. Selected strains of yeast may be able to convert mycotoxins into non-toxic materials “or simply degrade or eliminate toxins altogether,” Ward related. Initial success with yeast and trichothecene has encouraged Peoria scientists to apply the approach to aflatoxin over the next few months. “Could we use this as a toxin control agent in a field
inoculant type of setting?” Ward posed. “It obviously would depend on the yeast. “Another application would involve essentially hunting genes in yeasts. Those genes could be introduced into plants so the plants could make these products themselves and detoxify toxins. You could also create a detoxification agent for stored grain.” Ward and his colleagues also are considering use of “beneficial” fungi that already exist in corn to counteract aflatoxin-producing Aspergillus fungus. Beneficial fungi possess the means to survive mycotoxins present in the plant or field and thus may offer options for neutralizing aflatoxin or killing or outcompeting harmful Aspergillus in corn. NCAUR continues to develop more accurate “rapid” tests for aflatoxin in corn. Jefferson County farmer Joe Coultas told FarmWeek his area’s current aflatoxin problems are aggravated by a lack of reliable testing capabilities to determine grain quality and potential quality discounts. “You can take one (corn) sample in three different times and come up with different results,” Coultas said. “That’s costing us money.” — Martin Ross
Illinois Public Health to test milk for aflatoxin BY KAY SHIPMAN FarmWeek
The Illinois Department of Public Health next month will resume testing raw milk for aflatoxin because of possible mycotoxin-contaminated grain due to the drought, an agency spokesman told FarmWeek. The agency’s food, drugs, and dairies division recently determined it needed to resume sampling after the practice had been suspended previously, said Melaney Arnold. Currently, the plan is to test raw milk four times in
the next six months at each processing plant, but that frequency may change depending on the situation, she said. The sampling will continue through next spring. “As the farmers move more toward corn feed (for cows), we will be checking” for aflatoxin, Arnold said. The Food and Drug Administration sets guidelines for allowable aflatoxin levels in livestock feed at so many parts per billion (ppb). The restriction for dairy cattle feed is 20 ppb. The guideline for allowing milk into the supply is less than 0.5 of a ppb of aflatoxin, according to the state public health agency.
cant livestock drought relief next year as “probably nonexistent” without a solid farm bill framework in place. “(Lawmakers) need to take action now,” the Creal Springs cattleman said. “Let’s sit down and get it hammered out so that livestock producers, all agricultural producers, will know where they stand related to the farm bill.” Crops and claims Meeting with farmers in Springfield, Illinois Natural Resources Conservation Service (NRSC) resource conservationist Eric Gerth noted NRCS can reschedule implementation of conservation practices without penalty. When it’s “the only option that’s left,” it can cancel existing contracts with drought-stressed farmers, he said. Jodie Tate, deputy director of USDA’s Risk Management Agency Springfield regional office, urged farmers to contact their crop insurance agent within no more than 72 hours after “the first time you notice you have any kind of damage.” A written claim then must be filed within 15 days. Growers must leave the damaged crop in place and “continue to normally care for the crop” until a claims adjuster has examined reported damage. In 2011, 17.6 million acres of Illinois corn and beans were covered under federal crop insurance, for $12.3 billion in total maximum insurance liability, according to Tate. She noted heavy claims volume this season, especially across Southern Illinois, with added claims now rolling in from central and northern counties. Illinois corn growers already are “taking bigger hits” this season in terms of aflatoxin and thus potential quality loss claims, she said.
RMA administrator: All claims will be paid BY DANIEL GRANT FarmWeek Michael Alston, deputy administrator for insurance services at the Risk Management Agency (RMA), believes it’s too early to estimate the amount of crop insurance claims that will be filed this season. But at this point he is sure of one thing: All claims will be paid, regardless of the total. “Will (crop insurance) companies have enough money to pay (what could be record claims this year)? Absolutely yes,” Alston assured participants of the recent Illinois Farm Bureau Marketers to Washington trip. RMA puts each crop insurance company through a stress test and requires all companies to maintain a two-year reserve fund. “As of (Aug. 8), not one company has indicated it’s in any trouble,” Alston said. “If there is trouble, the federal government will step in and make good on all claims.” This year nearly 80 percent of all crops are insured. Last year, federal crop insurance paid out about $11 billion in crop loss claims due in part to flooding in the upper Midwest, drought in Texas and Oklahoma, and damage on the East Coast from Hurricane Irene. This year, nearly 90 percent of the U.S. corn crop is in areas affected by the drought. Ron Plain, University of Missouri ag economist, recently projected the U.S. corn crop, despite reduced yields, still is worth about $75 billion. “It’s way too early to determine what the actual costs (of crop insurance claims) will be this year,” Alston said. “My main concern at this point is getting adjusters out there in a timely manner.” Alston told IFB members that if farmers start harvesting corn and have issues with aflatoxin, they should immediately contact their crop insurance agent. Long-term, a large payout in crop insurance claims this year doesn’t guarantee farmers will be saddled with higher premiums next year and in subsequent years, Alston said. In fact, he said he believes crop insurance premiums for corn and soybeans possibly could decline next year. “It would take multiple years (of massive payouts) to affect the rates,” said Alston, who noted crop insurance rates are based on a 30-year average. “The loss ratio has been extremely low in Illinois,” he added.
Page 5 Monday, August 20, 2012 FarmWeek
the drought
Drought could put a dent in DDGs exports BY DANIEL GRANT FarmWeek
The runaway success of the export market for U.S. distillers dried grains (DDGs) could hit a speed bump in coming months. USDA this month projected corn used for ethanol production will decline by about 400 million bushels. Ethanol margins have tightened due to tighter corn supplies and higher prices. Reduced ethanol production not only will affect corn use, but it also will affect supplies of DDGs. Each bushel of corn used by the ethanol industry produces about 2.8 gallons of fuel and 17 pounds of DDGs —
a high-energy animal feed. The U.S. Grains Council (USGC) and other promoters of U.S. ag in recent years built up strong demand for DDGs around the world. Now growth of that market could come to a screeching halt if there’s not enough product to service it. “The challenge to us (initially) was can we find new markets for this stuff (DDGs),” Tom Sleight, USGC president, told participants of the recent Illinois Farm Bureau Marketers to Washington trip. “The problem now is we have to be sure we have the supply. “Ethanol production is shrinking and there’s been
questions about the RFS (Renewable Fuels Standard),” he continued. “What’s going to happen to DDGs availability?” DDGs exports increased from less than 1 million metric tons in 2005 to nearly 9 million metric tons during the 2011 marketing year. USGC contributed to the success by conducting feeding trials, seminars, and other promotions for the feed ingredient in Canada, Egypt, Jordan, Colombia, Peru, Malaysia, Thailand, and Indonesia. “It’s been a raging success,” Sleight said of the DDGs promotions. “There now is demand all over the world. It’s a very popular feed.”
If the U.S. has enough DDGs, Sleight predicted China could become the top importer. China recently dropped an anti-dumping case it filed against the U.S. in 2010. Elsewhere, Morocco recently lowered its tariffs on
DDGs imports. So the stage appears to be set for the continued growth of DDGs sales around the world if the U.S. has enough supply. The top customers for U.S. DDGs last year were Mexico, China, Canada, Vietnam, and South Korea.
The RFS2: winners and losers? BY MARTIN ROSS FarmWeek
Various interests across the economy would be affected by a pare-back in federal Renewable Fuels Standard (RFS2) mandates, according to a new Purdue University study.
Here are a few of the potential impacts: Grain farmers. The waiver request adds “government uncertainty” to an already uncertain corn productionmarketing season, Purdue ag economist and study coauthor Chris Hurt told
RFS2 Continued from page 1 Illinois Beef Association President Jeff Beasley advised against a “knee-jerk reaction” to the waiver request. He urged the agency to “thoroughly evaluate all aspects of how this is going to impact agriculture.” “I don’t think there’s any question that we’re going to have a shortage of corn this year,” Beasley told FarmWeek. “Is it important that (RFS2) mandates be pulled back to try to alleviate some of the rising feed prices we’re going to face? EPA needs to take its time to make that decision. “Talk to beef producers, talk to pork producers, talk to the ethanol plants, talk to grain producers. Then make a decision based on the best interests of everyone as a whole.” The Purdue study analyzed possible impacts based on “stronger,” “median,” or “weaker” drought scenarios. In the median case, with some 11 billion bushels of corn production (USDA is projecting a 10.8-billion-bushel crop), a projected 4.4 billion bushels of corn would be available for U.S. food and feed use under existing RFS2 targets. If ethanol production dropped to 10.4 billion gallons under a reduced RFS2, 5.5 billion bushels reportedly would be available. Purdue pegged corn for export under the median scenario at about 1.5 billion bushels with a full RFS and 1.6 billion bushels with 10.4 billion gallons of ethanol. Renewable Fuels Association President Bob Dinneen argues an RFS2 waiver is unnecessary. U.S. ethanol plants are on pace to use about 3.13 billion bushels of corn this year — according to Dinneen only about 2.9 percent of the global grain supply. He cited an RFS2 provision that allows fuel refiners to use unused surplus renewable identification numbers (RINS) to meet federal targets in 2012 and 2013, potentially driving down ethanol corn demand by 14 percent this year. U.S. House Energy and Commerce Committee member John Shimkus admits he is “caught between a rock and a hard place” with regard to the waiver request. Shimkus deemed the Renewable Fuel Standard “a great program” that has reduced U.S. dependence on foreign oil, arguing that “when times are good, it keeps (fuel) prices low.” At the same time, he cited Illinois livestock producers who could use “at least some pressure taken off them.” — Martin Ross
FarmWeek. Speculation over the degree to which the Environmental Protection Agency (EPA) might adjust RFS2 targets could spur “a lot more volatility” in the market, he said. An EPA waiver would result in lower corn prices, “and the more they lower the RFS2, the more it would tend to lower corn prices,” Hurt said. That’s a bitter pill for farmers seeking to market “the little corn we’re going to have in Illinois this year,” Hurt admitted. At the same time, lower corn prices would benefit other “end users” such as livestock producers, high fructose corn syrup manufacturers, and export customers. The livestock sector. Hurt cited a recent conversation he had with a family hog farmer who faces as much as $1.6 million in possible losses over the next year. Biofuels mandates have taken a “terrible toll” on Arkansas pork and poultry farmers, “potentially forcing reduced production and job losses and
increasing food prices for consumers worldwide,” Arkansas Gov. Mike Beebe maintained. Illinois Pork Producers Association’s (IPPA) view of the RFS2 reflects that of the National Pork Producer’s Council, which deems the waiver option “a tool put in the law to address situations such as this drought.” That said, a number of IPPA members “raise corn as well as pigs,” IPPA industry relations director Tim Maiers told FarmWeek. From a cattle standpoint, distillers dried grains (DDGs) generated by ethanol plants “are a big factor in Illinois,” Illinois Beef Association President Jeff Beasley said. Because of their importance in modern “beef cattle diets,” he feels DDG availability should factor into an RFS2 decision. “They’re a good feed source — a lot of times, they’re an economical feed source,” Beasley said. “And they’re an alternative for us.” Any congressional aid provided the livestock sector also
could offset potential losses and thus may “filter into the decision,” Hurt noted. Consumers. While corn costs are relatively insignificant to energy and other food production and distribution costs, Hurt suggests higher corn prices resulting from RFS2 demand could affect “the rate at which food prices would go up as a result of the drought.” Lower corn prices also would “tend to favor lower gasoline prices,” Hurt added. While ethanol is still less expensive than gasoline on a per-gallon basis, Purdue’s study argues a continued rise in corn prices could lead to ethanol prices surpassing gas prices by a significant margin, hurting incentives for fuel suppliers to blend ethanol. “Who would get hurt? Crop farmers,” Hurt concluded. “That’s a tough thing to throw on them after they go through this drought. But prices are still higher than they would have been without the drought, and crop farmers have a substantial subsidized crop insurance program.”
Filter strip release rejected — FSA rep While USDA has granted livestock producers considerable leeway in releasing Conservation Reserve Program (CRP) acres in Illinois for emergency haying and grazing, filter strips will not appear on the federal drought relief list. That’s according to Donald King, Illinois FSA conservation and environmental programs specialist. Illinois’ FSA office had requested and Illinois Farm Bureau supported release of farm filter strips for emergency use, but the federal FSA rejected the idea at the national level. “The overriding policy is that we can’t authorize haying or grazing within 120 feet of a stream or other water body,” King told FarmWeek during a meeting with farmers last
week in Springfield. “By definition, that’s a filter strip. “We were successful in getting (grass) waterways, which previously could not be baled, added to the list this year. Actually, some of the higher-quality grass that’s on CRP land would be in waterways.” FSA and others argued haying and grazing would remove stored nutrients from filter strips and thus actually might help protect adjacent surface waters. However, Washington FSA officials reported release of filter strips would require a full environmental assessment, “which would have taken some time,” King said. — Martin Ross
FarmWeek Page 6 Monday, August 20, 2012
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had some below average temperatures last week for the first time all summer. We also had a little more rain — 0.25 of an inch on Thursday — that probably will help the soybeans fill out pods. Not much change in the corn crop. Lots of people are gearing up for an early harvest. The quality of the cornstalks will be a major issue this fall. Because of the lack of moisture, we already are starting to see standability problems. Last week was fair week in Winnebago County, and it was good to get out and see everybody. Pete Tekampe, Grayslake, Lake County: A great day in Lake County Friday morning. Temperatures were mild — 58 degrees, and we got just less than 1 inch of rain Wednesday and Thursday. Corn is surviving and still has good color for the most part. I have no idea where the yield will be. Just got through spraying the beans for mites for the second time. The clay spots in the field are showing severe damage. Need frequent rains yet to make a good crop. Leroy Getz, Savanna, Carroll County: Rain on Monday, Aug. 13, and then again Thursday totaled 0.8 of an inch. Cooler days have helped the livestock. Corn choppers are busy trying to find the poorer fields, and more acres are needed to fill the silos. Stalk quality is a big concern. Harvest will be early as maturity approaches with now 2,452 growing degree units. Fourth-cutting hay is being made, but is not yielding what some expected. Ryan Frieders, Waterman, DeKalb County: Last week brought a dramatic change in the temperature. It has been pleasant to work outside, and the nights been cool. We received 0.4 of an inch of rain spread out through the week. Beans continue to stay green, possibly taking advantage of the showers. Corn is dented and beginning to slowly dry down. I have heard corn yields calculated at 40 bushels per acre from silage cut in the area. That yield is tremendously lower than I was predicting. Time will tell as harvest approaches. Ken Reinhardt, Seaton, Mercer County: Most everyone had a good inch of rain early in the week and a tenth or two on Thursday. This was the biggest widespread rain since late June. Soybeans have responded to the moisture and lower temperatures of the past couple weeks. Pods have developed from nodes that appeared to be all but done for. Some corn has turned brown in parts of field. These will be low-yielding areas, according to combine reports from the south. Hay producers have commented that their third cutting of alfalfa was very good, even better than the first cutting. Plot tours are ramping up. The Mercer County Soil, Water, and Conversation District no-till tour dinner is Tuesday evening. Ron Moore, Roseville, Warren County: We received 0.7 of an inch of rain last week in two different events. Areas north of our farm got more than double that amount. That is the same story for most of the rain events this growing season. The earlyplanted corn is black-layered now, and we will start chopping silage next week. The recent showers will help the soybeans immensely. There may be some more flowers on new growth but the moisture will help fill the pods that are there. The recent rains may even allow some growth of hay so we can harvest another cutting. We have been using hay from winter supplies and badly need more hay for our cattle. Jacob Streitmatter, Princeville, Peoria County: I had the biggest rain events I have had since April 27. On Sunday, I received 0.4 of an inch and then Thursday, I received 0.9 of an inch. Almost a flood. It is still dry. My paddle boat docked in the pond is resting peacefully on dry dirt. I was starting to think it forgot how to rain, but I now have a glimmer of hope. Way too late for corn, and I have no idea about the beans. There are rumors of combines going with small yields to brag about this year, but I have not seen any corn harvested yet.
Tim Green, Wyoming, Stark County: It’s amazing what 75 degrees and some rain will do. Crops appeared a little better last week. We ended up with 0.5 to 0.8 of an inch of rain Thursday, and it perked up the beans. It will help some of the beans. The corn crop is starting to really show what heat does to it. A lot of barren stalks, and a lot of small numbers of kernels. The stalk quality is terrible. We had a little wind, and I had one guy tell me that the stalks that had no ears fell over. People are thinking about starting harvest right after Labor Day, which is a little earlier than usual. They are worried about stalk quality. Mark Kerber, Chatsworth, Livingston County: Finally, some rain has given us some relief. Only 0.8 of an inch, but this has been our biggest amount since spring. It missed the nick-of-time timeframe. Farmers are getting ready for this early harvest. We won’t be wearing out our trucks and wagons this fall. Aflatoxin in corn could be an issue this fall. Elevators are gearing up to test for it. Remember, it can grow in your bin — another reason not to use the bins this year. Federal Crop Insurance Corp. will be discounting our payment if higher levels are detected. Soybeans are short and the pods are flat, but the rain should help fill them. Markets are consolidating. The weather scare is over. Demand is decreasing. Our ethanol plant is running strong and doing well. Ron Haase, Gilman, Iroquois County: It rained on Aug. 13, 14, and 16. Our farms received from 1.10 to 1.45 inches for the week. We haven’t had this much rain since June 17. Corn development ranges from the R4 (dough) growth stage on up to the R5 (dent) growth stage. Most fields in the area are at R5. Some fields have the milk line 90 percent of the way down the kernel. Many fields have the ears hanging down, even though they have not reached maturity. Hopefully, the rain will help our corn in the dough stage fill out the kernels. Most soybean fields in the area are at the R5 (beginning seed) growth stage. Some fields are the R6 (full seed) growth stage. Pod counts per plant range from 18 to 25 with two to three potential soybeans per pod. The local closing bids for Aug. 16 were: nearby corn, $8.14; new-crop corn, $8.13; fall 2013 corn, $6.06; nearby soybeans, $16.63; new-crop soybeans, $16.12; fall 2013 soybeans, $12.48. Brian Schaumburg, Chenoa, McLean County: A general 2 inches of rain in this area more than doubled the season total for some farms. Beans benefited greatly as this could add 5 to 7 bushels per acre to yields, but they still will range only from 25 to 50 bushels per acre. Farmers are prepping equipment, planning insurance claims, and figuring out marketing plans. Seasonal workers will not be overtaxed this year. Remember, drought social etiquette dictates that no one wants to hear about your 150 bushels per acre “disaster!” Corn, $8.01; fall, $8.06; beans, $16.62; fall, $16.07; wheat, $7.85. Steve Ayers, Champaign, Champaign County: Yippee! It can rain! A cold front raced through the area Thursday afternoon with frighteninglooking cloud formations, dramatic lightning, storm watches, and 1.8 inches of much needed rain. Jamaica in Vermilion County reported 60 mph winds, and there were several large limbs blown down at St. Joseph Ogden High School. On Sunday, Aug. 5, we had 0.3 of an inch of rain, and I thought that was going to be our bean-maker rain until Thursday’s storm. A few bean fields have started to yellow. USDA has our crop reporting district at 95 percent dough, 67 percent dent, and 13 percent mature for corn. Beans are 92 percent setting pods and 7 percent yellowing. Farmers are busy preparing for harvest and many are getting antsy. See you at the Urbana Sweet Corn Festival Friday and Saturday.
Wilfred Dittmer, Quincy, Adams County: Greetings once again from a dry Adams County. We received 0.10 of an inch of rain on Monday morning, Aug. 13. Forecasters kept saying we could get rain Thursday, but no such luck. The wind changed directions and left this area high and dry. Some farmers are shelling, other’s chopping, and others still undecided as to what they will do. Carrie Winkelmann, Tallula, Menard County: The cooler weather and 0.8 of an inch of rain last week really helped the soybean crop. At least I am hopeful that it is helping, and to quote my husband, “Because of the recent weather, the corn has taken a little break from dying.” It is blacklayered, so I’m not sure if the rain will help the test weight. To my knowledge, no more corn harvesting has been going on in the area. Tom Ritter, Blue Mound, Macon County: It was a real event Thursday afternoon with lightning, thunder, water standing in the ditches for a brief time, and rain that actually hit the ground. Totals for most people seem to be just less than 1 inch. The rain and cooler temperatures were a welcome relief. Nice to get some humidity back in the soil. A few farmers have started harvest. Moisture has been running from 19 to 30 percent. Yields are harder to determine, but there have been reports of anywhere from 40 to 130-bushel corn. Seems like Monday (today) is the magic day for many farmers to start, so there should be a lot of activity this week. Soybeans will benefit some from this rain. At least it should help with pod fill and the size of the soybeans. Todd Easton, Charleston, Coles County: Corn harvest continues in scattered places across Coles County. Most producers are still waiting for the corn to dry out more — fields that have been harvested are running in the low to mid-20s on moisture. The average field in our area is still in the upper 20s and lower 30s. Our farm in central Coles County received 0.25 of an inch of rain on Monday (Aug. 13) and a hard-pounding inch on Thursday afternoon. The bean fields are showing visual improvement, and pods on the plants have a much better chance of filling than they did a week and a half ago. Hopefully, they will make better-than-expected yields and take some of the sting out of this drought. Unconfirmed corn yield reports for the county range from 8 bushels per acre to just barely breaking 100. What I have harvested is somewhere in the middle of that range. Once again, all we can say is maybe next year. Jimmy Ayers, New City, Sangamon County: In the report I gave on Aug. 13, the yield reported was from 60-160. As last week progressed, I came to find that the yield was 40 to very few fields over the 160 mark. There is a lot more corn yielding from 60 to 100 than anything else. Moisture is as low as 19 percent in some spots, but there are still guys picking 28 to 30 percent corn. On Aug. 12, we had 0.2 of an inch of rain. A storm Thursday night left us with 0.75 of an inch at our place. The storm brought some heavy winds and knocked down a lot of corn. That is going to make it a little bit more difficult to harvest. Soybeans probably benefited from the rains. They are still looking a little rough, but they certainly appreciated a chance to start flowering again and probably are going to put on more pods. Quite a few combines have started rolling. A few of the operators are running pretty hard. Doug Uphoff, Shelbyville, Shelby County: Had an inch of rain and 60 mph wind. Flat corn and very poor to no yield equals gut ache and headache. We have 800 acres more or less of flat corn now after high winds moved through Thursday. It’s going to be fun picking corn that is yielding 70 bushels per acre at a snail’s pace, but at least we have corn. Beans were flattened, too. They should straighten up some, though. Seems to be a narrow strip that was hit the most, unfortunately we have a lot of acres in that strip.
Page 7 Monday, August 20, 2012 FarmWeek
CROPWATCHERS Dan Meinhart, Montrose, Jasper County: A general rain moved through the area on Thursday evening leaving about 1.5 inches, which should help most of the soybeans. Silage choppers are still running. Cattlemen are stocking up as much as they can. The majority of the cornfields in the area will be abandoned this year. There are reports of tractor fires while disking cornfields. Be sure to take a fully charged fire extinguisher with you to the field. Other activities include mowing road ditches, water ways, and Conservation Reserve Program ground. Temperatures this week are expected to be in the low-80s and no rain is in the forecast. Kevin Raber, Browns, Wabash County: Good rains fell this past week. Too bad it is too late for the corn crop, but it has helped to green up the countryside. I never would have imagined that starting corn harvest would include a disk as well as a combine. There have been cornfields shelled with yields anywhere from almost nothing up to 80 bushels an acre. I’ve also seen fields that have been disked down. My guess is that the extreme variability in the yields will be the norm for this harvest.
Dave Hankammer, Millstadt, St. Clair County: This past week rain showers moved through the area on Thursday, delaying for one and a half hours the Cardinal baseball game I was attending. No one in our group complained. The same line of showers brought 1.2 inches of rain to some of the driest areas in the southern part of St. Clair County. Unfortunately, rainfall amounts were spotty in the area. Corn harvest continues for farmers in the river bottoms with reports of yields from 20 to 120 bushels per acre with grain moisture levels in the mid to upper 20 percent levels. Stalk quality and aflatoxin levels have become topics of concern for many farmers. Farmers with earlyplanted corn have started to harvest those fields because of the deteriorating stalk quality due to the drought and wind damage. I’ve recently observed several double-cropped sorghum fields in the area. It has grown well above the wheat stubble and is starting to extend its grain head. Local grain bids: corn, $7.61; soybeans, $16.67; wheat, $8.12. Rick Corners, Centralia, Jefferson County: By golly, we just had 0.8 of an inch rain Thursday evening. If we can get those little short fellers in the combine, we might just have a bean or two this fall.
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com
Dean Shields, Murphysboro, Jackson County: We finally got a big, heavy rain in a storm Thursday night. Early indications were 1 to 2 inches and quite a bit of hail damage on some of the corn and soybeans. I didn’t want it to storm, but I sure like the rain. The corn has been pretty well made for a long time, and it is not going to yield very well because of the drought. I had high hopes for the soybeans, and I have to check them out to see if I had that much hail damage. There is always a twist in farming, isn’t there? People are getting ready for harvest, and going on vacations, and doing some mowing. Ken Taake, Ullin, Pulaski County: We finally received 1.2 inches of rain Thursday evening. It’s the largest rain we’ve had since before we started planting in early April. All together, with 0.2 of an inch we received Monday evening (Aug. 13), the August total is 1.6 inches. That makes it the wettest month we’ve had since we started planting in the first of April. The rain at least lifts our spirits a little bit. It may help the late soybeans. The early soybeans are already suffering from premature death and are dropping their leaves, and I doubt the rain will help those very much. Early corn harvest continues in my area. I have heard of yields anywhere from 25 to 85 bushels to the acre. In areas of Alexander County where they received more rains, I’ve heard of yields as high as 160. Hopefully, we will get started with harvest this week, and I will have a better feel for what our yields will be then.
Change in weather pattern a ‘step in the right direction’ BY DANIEL GRANT FarmWeek
Cooler temperatures and significant rainfall in some parts of the state last week provided a nice change of scenery. “Our pastures were totally brown. Now we’re seeing a little green cast to it,” said Allen Entwistle, a far mer from Riverton and president of the Sangamon County Farm Bureau. “I hope (pasture conditions) continue to improve. We’ve been feeding a lot of hay (to cattle) lately.” Thunderstorms last week dropped between 1 and 2plus inches of rain across two large bands in the state — one along the Interstate 74 corridor in East-Central Illinois and the other between Interstates 70 and 64 in the south-central portion of the state. Some of the stor ms produced cropflattening winds. Rainfall Thursday totaled 2.71 inches in Vandalia, 2.66 i n c h e s i n F a r m e r C i t y, 2 inches in Paxton, and 1.93 inches in Bloomington, Jim Ang el, state climatologist with the Illinois State Water Survey, reported. “We received 1.82 inches in Champaign,” Angel said. “That is the largest one-day total of 2012.” Meanwhile, temperatures last week around the state were about 4 degrees below averag e, which was a wel-
come relief from the scorching heat that dominated the weather pattern in much of June and July and into August. “It’s certainly a step in the right direction, but I’d hesitate to call it any type of recover y,” said Angel, who noted many areas of the state last week received little or no rain. “ We ’ l l l i k e l y s e e s o m e improvement in topsoil m o i s t u r e ,” h e c o n t i n u e d . “But the deeper layers are still ver y dr y at this point. We’ve got a long way to go for stream flows and groundwater to recover” from the worst drought since 1988. Some far mers started or continued to har vest cor n last week. Overall, 1 percent of the corn crop was in the bin as of the first of last week. “Some of the corn is drier than I thought it would be (with moisture readings between 15 and 16 percent),” Entwistle said. “Yield averages are all over the board, with lows of 10 to 20 bushels and highs around 110 to 120 bushels.”
Last week’s rain will do little to help the corn crop (90 percent of the crop was in the dough stage compared to the average of 67 percent) but Entwistle believes a milder, wetter stretch of weather could improve bean yields. “I think it will help the soybean crop,” he said. “We were aborting pods with all the heat, but with the cooler temperatures and rain we’ll at least get some pod filling.” Ken Reinhardt, a Fa r m We e k C r o p w a t c h e r from Mercer County, also believes soybean potential improved in recent weeks. “Soybeans have responded to the moisture and lower temperatures the past couple weeks,” he said, “Pods have developed from nodes that appeared to be all but done for.” Unfortunately, the recent shift in the weather pattern may not last. The seasonal outlook for September last week predicted an increased chance of above-nor mal temperatures and below-normal precipitation in Illinois, Angel reported.
This is some of the nearly 800 acres of corn left flat on the Doug Uphoff farm in Shelby County after 60 mph winds moved through Thursday. Beans were flattened, too, but they are expected to straighten up to some degree. (Photo by Doug Uphoff)
Organic Growers urban farm-to-table tour Sept. 10 An urban ag riculture tour will be from 10 a.m. to 2 p.m. Sept. 10. The pre-registration deadline is Aug. 31. Sponsored by the Illinois Organic Growers Association and University of Illinois Extension, the tour will focus on connections to local produce. It will begin at the Goodness Greeness processing facilities, Chicago. The company supplies organic produce to
more than 300 stores. Participants will hear about the facilities’ expectations and relationships with growers. Participants may eat at Uncommonground on Devon, a Chicago restaurant that ser ves local food. The restaurant also has the nation’s first certified organic rooftop far m where veg etables and herbs are g rown for the menu. Rooftop farm tours will be
offered after lunch. The registration fee is $10 plus the cost of lunch. To r e g i s t e r, g o t o { h t t p : / / f a r m totableg oodnessg reenessuncommonground.eventbrite.com}. For information, call Ellen Phillips, U of I Extension local food systems and small farm educator, at 815-732-2191 or email her at ephillps@illinois.edu.
FarmWeek Page 8 Monday, August 20, 2012
Young Leaders
IFB Young Leaders honored at Illinois State Fair Smith, IFB Young Leader manager, said of the The Illinois Farm Bureau Young Leaders were very active last week during Ag Day at the award finalists. “I’m looking forward to the American Farm Bureau Federation (AFBF) Illinois State Fair. annual meeting in Nashville.” Young Leaders announced the winners of The award winners in January will represent the top two state awards and also hosted the Illinois in national competition popular Agri-Quiz Bowl. during the AFBF annual meetChad and Ashlie Broster of ing. Mount Carmel in Wabash ‘They were all In other Young Leader news County won the Young o u t s t a n d i n g at the State Fair, Champaign Leader Achievement Award. Darin Doehring of Windsor a p p l i c a n t s . I ’ m County for the second year in in Shelby County was the run- p r o u d o f e a c h a row won the Agri-Quiz Bowl. ner-up, and Lynn Rohrscheib and every one of The Champaign County team of Fairmount in Vermilion trailed by 20 points but buzzed County received honorable them.’ in at the last second on the last mention. The Achievement Award rec— Jennifer Smith question with a correct answer, Young Leader manager which was good for 30 points ognizes young farmers’ manageand the win. ment, innovation, and self-initiaThe other teams that finished tive displayed in their farming in the top four at this year’s Agri-Quiz Bowl operations. Leadership ability and involvement were those from Edwards, Hancock, and Ranand participation in county Farm Bureau or other civic, service, or community organizations dolph counties. Applications for the 2013 Achievement and also are factored into the award. Excellence Awards are now being accepted. For Brad and Paula Zwilling of Fisher in Champaign County won the Excellence in Ag Award. more information, contact the local Farm Nate and Tonya Wiersema of Chadwick in Car- Bureau office or visit the website {www.ilfb.org}. roll County were the runners-up. “We encourage those interested to start The Excellence Award recognizes county working on them (applications) sooner rather Farm Bureau Young Leaders who may not be than later and add to them as time allows,” full-time farmers for their efforts in agriculture Smith said. and leadership development. The deadline for applications for the 2013 “They were all outstanding applicants. I’m proud of each and every one of them,” Jennifer awards is Jan. 17.
Chad and Ashlie Broster, Mount Carmel, and their children, Cole, 7, and Audrey, 5, received the Illinois Farm Bureau Young Leaders Achievement Award last week during Ag Day at the Illinois State Fair.
Brad and Paula Zwilling, of Fisher, and their children, from left, Nathan, 2, Dylan, 7, and Caleb, 5, received the Illinois Farm Bureau Young Leader Excellence in Ag Award last week during Ag Day at the Illinois State Fair.
Bike Ride 2012 Sept. 3,4,5
Cycle to Support Illinois Agriculture in the Classroom The 17th annual Bike Ride will spin through DeWitt, McLean and Piatt counties this September. Participants will enjoy picturesque parks, prairies and American farmland in this section of our great state. The Bike Ride is an Illinois Agriculture in the Classroom (IAITC) fundraiser. Riders make brief stops at schools along the routes to raise awareness and convey the important message of agriculture to Illinois students.
Participants of the Illinois Farm Bureau Young Leader Agri-Quiz Bowl, from left, Hamilton County and Effingham County, compete in the event during Ag Day at the Illinois State Fair. The team from Champaign County won the event for the second year in a row. (Photos by Cyndi Cook)
IAITC Bike Ride Highlights • 1-Day OR 2-Day ride options • Cross country ride - Not a race • SAG support available: Physical/mechanical breakdown, first aid, supplies, snacks, beverages • Fun evening activities • Comfortable hotel accommodations and complimentary breakfast • Participation is flexible, desired riding average speed is 12-15 mph • ALL registered riders will receive a “Rider Packet” with specific ride information including a fundraising toolkit
Registration Fees Individuals participating for the full event: Meals/Lodging run approximately $175. Expenses not offset by fundraising efforts will be billed to you at the conclusion of the Ride Early Bird Registration (postmarked by August 27) .................................................. $70 Student Fee (2-day) .......................................$60 Registration (postmarked after August 27) .$90 Children 12 & under......................................... $25 1-Day Rider*....................................................$50 Student Fee (1-day)* ......................................$40 *SAG Assistance, snacks, drinks, t-shirt & lunch provided
Raise funds for IAITC & YOU determine how much it costs to ride! Riders are encouraged to raise funds for IAITC by collecting contributions from family, friends, and co-workers. Call 309-557-2230 or visit our website www.iaafoundation.org to receive your fundraising toolkit.
Contact the IAA Foundation at (309)557-2230 or go to www.iaafoundation.org for more information - Registration available online -
Page 9 Monday, August 20, 2012 FarmWeek
THE MOST POWERFUL, FULLY FEATURED SIDE-BY-SIDES
FOR WORK AND HUNT.
F U L L- S I Z E
MIDSIZE
CREW
THE 2013 RANGER FAMILY DELIVERS. HARDEST WORKING.
SMOOTHEST RIDING.
Powerful gas engines, fuel-efficient, high-torque diesel
Spacious 2 or 3 seat cabins with tilt steering offer
or an electric motor for incredible power over the most rugged terrain. On-demand True All-Wheel Drive automatically engages
when you need it and takes the worry out of getting where you need to. Payload capacity up to 1,500 lb. and up to 1-ton towing on
outstanding driver and passenger comfort. Available EPS features variable assist for incredibly
easy steering and responsiveness for all-day rides with less fatigue. Polaris Independent Rear Suspension and high
ground clearance keeps the ride smooth.
full-size models. That’s industry-leading pulling power.
NOW IS THE TIME TO BUY With rebates up to $700 and financing as low as 2.99% — during the Polaris Factory Authorized Clearance Sales Event!* See your local dealer or visit polaris.com for details. *Offers end September 30th. Rebates vary by model. Financing and rates based on credit worthiness. See your participating Polaris dealer for details. Warning: The Polaris RANGER and RZR are not intended for on-road use. Driver must be at least 16 years old with a valid driver’s license to operate. Passengers must be at least 12 years old and tall enough to grasp the hand holds and plant feet firmly on the floor. All SxS drivers should take a safety training course. Contact ROHVA atwww.rohva.org or (949) 255-2560 for additional information. Drivers and passengers should always wear helmets, eye protection, protective clothing, and seat belts. Always use cab nets. Be particularly careful on difficult terrain. Never drive on public roads or paved surfaces. Never engage in stunt driving, and avoid excessive speeds and sharp turns. Riding and alcohol/drugs don’t mix. Check local laws before riding on trails. ©2012 Polaris Industries Inc.
FarmWeek Page 10 Monday, August 20, 2012
ILLINOIS STATE FAIR
Record sale proceeds only part of fair story BY DAVE MCCLELLAND FarmWeek
The Sale of Champions at the Illinois State Fair set a record for bringing in the most money ever, but that was only part of the story. The sale brought a total of $159,210, with records set in several categories. But the story behind the story was what happened after the sale. For instance, Chelsea Wycoff, 12, of Piper City in Ford County sold her meat pen of rabbits for $6,200. That was shy of the record of $7,500, but the bidding was only beginning. Chelsea received a standing ovation at the sale when it was announced she planned to
See pictures on page 15 donate half of her winnings to Easter Seals in Bloomington. Chelsea recently was diagnosed with Asperger’s Syndrome, a form of autism spectrum disorder for which she has been receiving therapy at the Bloomington facility. The original winning bidders — Beck’s Hybrids, Agrivest Inc., and friends of Rodger Wycoff — donated the meat pen back for resale, and with Gov. Pat Quinn doing the auctioneering, the rabbits brought another $3,400 with
the total resale amount going to Easter Seals. Successful bidders the second time around were AT&T and Beck’s Hybrids, and the governor chipped in with a donation of his own to Easter Seals. The big-ticket item at the sale was the grand champion steer shown by A.J. Line, 16, of Seaton in Mercer County. The 1,332-pound crossbred named Holyfield was purchased by AT&T and Monsanto for $52,000, topping the previous record by $800. The family announced 10 percent of the sale (about $4,500 after various deductions) would be given to OSF Children’s Hospital in Peoria. A.J.’s brother, Dalton, had been involved in a farming accident in July of 2011 and spent until Sept. 7 of that year as a patient at the hospital. His mother, Joyce, had stayed in touch with the hospital after her son’s release and learned some videos had been stolen from the sixth-floor game room. The money will go to replenish the video game supply, said A.J.’s father, Todd. In addition to the money donated from sale proceeds, a collection from the auction audience during each sale generated $213 for a total of $426, according to Allen Entwistle, Sangamon County Farm Bureau president.
EXHIBITING SHOWMANSHIP
Kaitlyn Tarr of Sangamon County watches the judge intently as she shows her Angus calf in the 13th annual Master Showmanship competition at the Illinois State Fair. She was one of 51 youngsters participating in the competition, coordinated for the third year by Illinois Farm Bureau. The overall winner was Brenen Diesen of Madison County. Second place went to Ashley Kauffman of McLean County, and third place went to Sarah DeSchepper of Knox County. (Photo by Cyndi Cook)
U of I specialist offers advice on drought-stressed corn University of Illinois beef Extension specialist Travis Meteer provides answers to some frequently asked questions about the use of drought-stressed corn as livestock feed. Question: What is the best way to harvest drought-stressed corn? Meteer: Chop for silage and ensile it. Q: I have problems with uneven dry matter in my
HELPING LITTLE HELPERS
Nick Anderson, right, business developer with the Illinois Livestock Development Group, shares information with William and Charlie Pittman of Springfield during the Illinois State Fair last week. The boys visited the Illinois Pork Producers Association’s new swine birthing center that was relocated near the Farmer’s Little Helper educational exhibit. (Photo by Ken Kashian)
fields because the hillsides are drier than bottomlands. Meteer: The moisture in the field may not be ideal for harvesting. You should strongly consider using an inoculant to help mitigate risk. Q: Is it beneficial to add inoculant this year? Meteer: Yes, the corn this year likely will be uneven, with dry matter hard to predict, and have low bacteria levels. Q: Can I round-bale drought-stressed corn? Meteer: Yes, but that will not reduce nitrate levels. Round-baling corn is challenging and puts considerable strain on equipment. Dry down of the stalk is crucial; the stalk dries better if crushed. Uneven moisture can result in bale spoilage. The stalk portion could be dangerous to the cattle. Many times the cattle will sort bales and leave the stalk last. If they are forced to eat the stalk and the stalk is high in nitrates, problems could follow. Make sure to test the bales for nitrates, preferably both before and after harvest. Q: What about wet-baling drought-stressed corn? Meteer: Wet-baling corn is not a common practice. In theory, the material in the bales should ferment, decreasing nitrate levels by nearly 50 percent. A thicker plastic may be needed (6 ml) to prevent the corn from
poking holes in the plastic and compromising the anaerobic environment. Q: What is the feed value of drought-stressed cor n silage? Meteer: Usually about 80 percent of the value of normal corn silage, ranging from 70 to 100 percent. The net energy of gain may be lower, but the net energy of maintenance is comparable. Protein will be higher, and the feed value is still good. Q: What happens if the test results indicate high nitrate levels? Meteer: Hay, straw, corn silage with lower nitrate levels, and byproducts can be used to dilute the feed so the nitrate levels are below the toxic level or less than 17,600 ppm (parts per million) nitrate. Consult a nutritionist or Extension specialist before feeding the corn. Q: I do not have a mix wagon. How do I dilute the corn silage with other feeds? Meteer: Limit-feed the corn silage and offer hay or another roughage freechoice. This is not a precise dilution method, but it will work. Be sure to have the silage tested to determine what portion of the total ration it can be. More information about drought-stressed corn is online {http://web.extension.illinois.edu/oardc/}.
Page 11 Monday, August 20, 2012 FarmWeek
ag finance
Farm Credit of Illinois offering relief to farmer borrowers BY KAY SHIPMAN FarmWeek
Farm Credit Services of Illinois, which serves more than 8,500 farm families in the 60 southernmost counties, will work with its farmer borrowers impacted by the drought, Farm Credit leaders announced last week at the Illinois State Fair. “We can’t make it rain, and we can’t restore a lost crop, but Farm Credit is committed to always be there to support our owners,” said Dave Owens, Farm
Credit Services of Illinois president and chief executive officer. The drought initiatives include an interest-free period for up to $100,000 of the balance on existing operating loans during September, October, and November. The program automatically will be applied to eligible operating loans as of Sept. 1. All interest charges on up to $100,000 of the balance through Nov. 30 will be credited back to the borrower.
Far m Credit also will restructure existing loans to defer current payments for far mers facing unexpected cash flow problems stemming from the drought. In addition, the institution will work with individual borrowers to consider locking in historically low longterm interest rates. “As a cooperative business, our overriding concern is for the financial viability of our customer stockholders,” Owens said. “Although
many grain farmers manage these weather-related risks through crop insurance, there will still be some financial impact and possible cash flow challenges on many farming operations.” In July and early August, Farm Credit hosted more than 1,000 farmers at 12 drought meetings throughout Central and Southern Illinois. The discussion included the processes and procedures for filing crop insurance claims.
Community banks at regulatory risk? BY MARTIN ROSS FarmWeek
Rural banks anticipate key challenges in 2013 as a result of the 2012 drought. At the same time, community bankers are attempting to cope with the increased fallout of increased financial regulation. U.S. House Energy and Commerce Committee member John Shimkus harbors concerns about efforts to “centralize the financial industry.” The Collinsville Republican worries “bigger banks are going to get bigger, squeezing out smaller local community banks because of rules and regulations.”
‘Given the notvery-robust economic recovery, I think the last thing we need is for community banks ... to be put under additional pressure.’ — David Schroeder Community Bankers Association of Illinois
Shimkus emphasized the importance of “competitive markets” for ag lending and other financial services during a farmer discussion last week in Springfield. Gridley farmer Doug Wilson noted his son, a student and part-time bank teller, spent two weeks of job orientation largely “sitting at a computer and learning regulations.” “He doesn’t have loan authority; he’s not doing critical reviews,” Wilson told Shimkus. “If ever there were an example of bureaucracy run amuck, it’s the time and energy that’s being spent (on regulatory requirements) in these small banks. It’s an issue we need to
address, because we’re all going to be leaning on our lenders maybe a little bit more.” Federal regulators have closed some 50 banks so far this year, primarily at the community level, according to David Schroeder, Community Bankers Association of Illinois (CBAI) vice president of federal governmental relations. But even with recent bank acquisitions and mergers, closures are “down dramatically from the highs of the past few years,” he told FarmWeek. Schroeder nonetheless shares concerns about the impact of regulatory requirements particularly on “the smallest of the banks,” whose regulatory problems are compounded by “any type of credit issue” such as weather-related losses or the long-term impact of drought on borrowers. Beyond having limited staff resources to devote to dealing with government requirements, those banks must spread regulatory costs over fewer customers, he noted. That’s potentially worrisome “from an ag standpoint,” Schroeder said. Schroeder estimates 70-80 percent of 2010’s Dodd-Frank Wall Street Reform/Consumer Protection Act “has no impact whatsoever on community banks,” which were able to secure a series of “carve-outs, exemptions, or clear victories.” But the law remains “a mixed bag” for local banks, granting regulators “a great deal of power and authority to actually write the rules,” Schroeder said. CBAI is working to ensure ongoing implementation poses “a minimal negative impact for community banks,” he related. Beyond Dodd-Frank, CBAI is anxiously eyeing “Basel III” global capital standards developed by the U.S. and other major financial powers. The U.S. Federal Reserve Bank, the Federal Deposit Insurance Corp., and the Office of the
Comptroller of the Currency (which regulates federal banks) are soliciting comments on proposed U.S. Basel III rules. CBAI had hoped community banks would be exempt from the standard, which would increase capital requirements, require banks to re-evaluate borrower risk, and potentially tighten loan availability. “The way it stands now,” small rural
banks likely will be subject to new rules, Schroeder said. “In this environment, given the not-very-robust economic recovery, I think the last thing we need is for community banks, which traditionally have been very common sense lenders, to be put under additional pressure to hold capital, which would result in reduced lending,” he maintained.
1st Farm Credit offers relief 1st Farm Credit Services is offering drought relief to its clients in the state’s 42 northernmost counties. The association will provide a 0.5 of a percent interest rate credit on all stockholder-owned operating loans from October through December. It also is extending the current reduced rate intermediate term loan program through the end of the year. Borrowers who want to make other modifications to current loans or create new funding options should contact their local branch. “We are here to help our clients,” said Gary Ash, 1st Farm Credit president. “We will do what we can to meet their needs in these volatile times.”
THE FUTURE IS YOURS FOR THE
TAKING. Choose the soybeans that have a legacy all their own: FS HiSOY®. The first proprietary soybean brand, HiSOY has been a part of the land for nearly 50 years. Grow proud and pass it on. See your local FS member company or visit www.fshisoy.com
©2012 GROWMARK, Inc. S13268
FarmWeek Page 12 Monday, August 20, 2012
Page 13 Monday, August 20, 2012 FarmWeek
U OF I AGRONOMY DAY
They’re here: Bt-resistant rootworms confirmed BY KAY SHIPMAN FarmWeek
University of Illinois agriculture entomologist Mike Gray’s news was as foreboding as the dark storm clouds gathering overhead. Western corn rootworm resistance to Bt corn has been confirmed in Illinois fields, Gray reported during Agronomy Day last week in Urbana. That resistance in a Whiteside County field was specific to corn with Cry3Bb1 proteins, which leaves Illinois farmers a few Bt corn options. Gray stressed the need for farmers to protect those remaining options. “There is a pretty limited lineup” of Bt hybrids, Gray said.
FarmWeekNow.com A video interview with U of I entomologist Mike Gray on the rootworm discover y is available at FarmWeekNow.com.
Ominous information about rootworm behavior also was reported by Joe Spencer, a research professor with the Illinois Natural History Survey. Illinois scientists learned rootworms don’t behave in Bt fields and refuges as entomologists had believed. Spencer quipped that real rootworm behavior is “out of compliance” with the assumptions that have shaped non-Bt corn refuge requirements. Fewer Bt-susceptible males move rapidly from refuges into Bt fields where they could mate with potentially resistant females, Spencer noted. This increases the likelihood that resistant females will mate with potentially resistant males and produce resistant offspring.
Mike Gray, right, University of Illinois agricultural entomology professor, reports western corn rootworm resistance to Bt corn has been confirmed in Illinois. He spoke at last week’s Agronomy Day in Urbana. Looking on is U of I graduate student Preston Schrader. (Photo by Kay Shipman)
Blended Bt and non-Bt seed — refuge-in-a-bag mixes — result in more even distribution of potentially resistant and susceptible rootworm beetles in fields compared to block refuges of 5 and 20 percent, according to Spencer. This increases the likelihood of their mating and decreases the potential for resistant offspring. Farmers plant non-Bt hybrids in refuges to increase survival of Bt-susceptible rootworms and reduce the potential development of Bt-resistant insects. Gray’s recommendations for the 2013 growing season in fields with potential Bt-resistant rootworm problems included planting hybrids with Bt traits or pyramid traits, planting non-Bt hybrids and using a soil insecticide, or rotating to another crop. “Mix it up for rootworms. Don’t use the same approaches,” Gray said.
In addition, U of I crop science researchers Ron Estes and Nick Tinsley reported their trials showed Bt fields with blended refuge mixes performed as well as pyramid Bt fields. The two also applied soil insecticides to plots planted with different Bt hybrids and a refuge-in-a-bag blend. Their results showed the use of soil insecticide did not improve yields or root protection. “Seed (refuge) blends are a good alternative to structured (or block) refuges, and there is no need to use an insecticide, too,” Estes said. All the researchers stressed the need for farmers to adjust their rootworm management strategies to protect the effectiveness of Bt hybrids. “Rootworm resistance to Bt corn is a reality. Bt resistance may be part of the legacy of assuming too much about rootworm behavior,” Spencer concluded.
U of I weed scientist: ‘You should fear this plant’
An invasive, fast-growing weed is extending its range into Central Illinois fields, and quick action is needed to control it, University of Illinois weed scientist Aaron Hager advised farmers attending Agronomy Day last week. “You should fear this plant,” Hager said, holding a tall Palmer amaranth weed that nearly matched his height. The weed grows as much as two to three inches a day, has deep roots, and is two times more competitive with crops than water hemp, Hager said. A Cass County farmer found Palmer amaranth growing in a Conservation Reserve Program (CRP) field seeded with grass mix. Several other farmers also used the same mix on their CRP fields, and Hager said he suspects Palmer amaranth also could be found in those fields.
Aaron Hager, University of Illinois weed science professor, warns farmers about problems in managing Palmer amaranth. (Photo by Kay Shipman)
“What we suspect is Palmer is being introduced as a contaminant in seed mixes or in cattle feed,” Hager noted. Hager advised far mers to integrate tillage with preand post-plant herbicide
applications. “It is devastating. You can’t mess with it,” Hager warned. “You could lose a field in three years if one of the female (Palmer amaranth plants) goes to seed.” — Kay Shipman
Emerson Nafziger, University of Illinois crop sciences professor, compares a spindly soybean plant from an irrigated field in his right hand with one from a non-irrigated field. Nafziger reported the deep soil moisture levels on non-irrigated fields make him a little more optimistic about the state’s soybean yields this year. (Photo by Kay Shipman)
Irrigation study showing water’s influence on beans This summer, University of Illinois crop scientist Emerson Nafziger has seen irrigation’s impact on soybean growth and learned about the resiliency of good Illinois soils. “I couldn’t have dreamed for a better year for an irrigation study,” Nafziger said with a laugh during Agronomy Day last week in Urbana. Nafziger reported on an irrigation trial that involved using soil probes that extend 40 inches deep. The plots are located on the university’s South Farms. Soil probes also were installed in a non-irrigated soybean plot. Despite the drought, the non-irrigated soil had some moisture at the 40-inch depth, which may be one reason some soybean fields look as good as they do, said the researcher. “These are very good soils,” Nafziger added. “I’m a little more optimistic about the (state’s) soybean yields,” he said, comparing plants from irrigated and non-irrigated fields, which had the same number of pods despite a significant difference in appearance. Soybeans in the non-irrigated plots were under stress, but still grew enough to make a canopy, he noted. While soybean plants on Nafziger’s irrigated plots grew well, that may not mean larger yields. “The taller (irrigated) beans shade themselves so much they can’t fill the lower pods, and there are no leaves down low to fill the pods,” he explained. Researchers have speculated water may be a limiting factor for higher soybean yields if proper amounts of fertilizer, fungicides, and insecticides are applied. However, Nafziger is questioning that assumption now. Nafziger’s goal is to grow soybeans that yield 100 bushels an acre. Given what he has learned during a drought, he is rethinking what may limit yields. “If we have water (to spur too much growth), we may not get higher yields from irrigation this year,” he concluded. — Kay Shipman
FarmWeek Page 14 Monday, August 20, 2012
IFB ANd pOlICy
CFTC seeks ways to increase protection of customer funds BY DANIEL GRANT FarmWeek
The Commodity Futures Trading Commission (CFTC) recently hosted a public roundtable to discuss additional customer protections for futures commission merchants. CFTC hosted the event in the wake of two major scandals involving the misuse and disappearance of nearly $2 billion in customer funds. MF Global filed for bankruptcy last fall after an estimated $1.6 billion in customer
scandals which shook farmer and investor confidence in the futures market),� said Doug Leslie, senior counsel in the office of legislative affairs at CFTC. “We’re not happy. We’re trying to figure out ways to increase the protection of customer funds and improve things.� CFTC is working to get back money customers lost. An estimated 90 to 100 percent of funds lost in the MF Global debacle could be returned to customers.
funds disappeared. More recently, Peregrine Financial Group filed for bankruptcy after the firm’s founder and CEO, Russell Wasendorf Sr., admitted he stole more than $200 million in customer funds over a 20-year period. Participants of the recent Illinois Farm Bureau Marketers to Washington trip met with CFTC representatives and attended a portion of the public roundtable. “The futures industry has sort of been turned upside down (in the wake of the
CFTC also has tightened requirements on the use of customer funds. There was a proposal at the public roundtable to start a customer indemnity fund as well. In other news at CFTC, it appears the commission will not impose any type of trading halts during the release of key USDA reports. Major exchanges, including the CME Group, have expanded hours and now offer trading during the release of crop reports. Graham McCall, attorney-
adviser for CFTC’s Division of Market Oversight, noted CFTC must observe real market effects before it would consider imposing market halts. “Even if we halt trade here (in the U.S. during the release of crop reports), people still could trade overseas,� McCall said. “It mitigates the effect.� CFTC has noticed spikes in trade volume when reports are released. It will continue to conduct surveillance to see if any trading activity suggests possible information leaks prior to release of the reports.
McDonough County FB tours adopted legislator’s district
SHOOTING FOR SUV, AITC
BY CHRISTINA NOURIE
From left, John Hegenbaugh (with driver), Kendall County Farm Bureau Young Leader Mike Brummel, Jim Sunburg, and Young Leaders Ken Davis and Matt Anzelc try unsuccessfully for a hole-in-one at White Tail Ridge Golf Course near Yorkville to win a new GMC Terrain. The Kendall County FB Young Leaders sponsored the outing as a fund raiser for the county’s Ag in the Classroom program and will donate more than $15,000 to the program from their efforts. (Photo courtesy of Kendall County Farm Bureau)
Want some more
Cash?
To reconnect with their adopted legislator, several McDonough County Farm Bureau members recently spent a day in DuPage County with state Rep. Sandra Pihos (R-Glen Ellyn). Pihos was ‘adopted’ by the county Farm Bureau in 2005, and spent a day touring McDonough County farms. However, it had been awhile since the farmers had met with her. Because the county has several newer county Farm Bureau board members, the board decided to make the trip north. The members were joined by one of McDonough County’s local legislators, state Rep. Norine Hammond (R-Macomb). Pihos coordinated a tour that highlighted some unique educational programs in her district. The group toured a new Homeland Security Education Center at the College of DuPage, one of the nation’s largest community colleges. The center is a $25 million facility that provides realistic training for police, firefighters, and other first responders. It features an interior training lab that offers real-life training exercises in anti-terrorism, hazardous materials, and emergency medicine. They also toured the college’s culinary and hospitality program, which provides students with training for careers as chefs and in hotel/motel management and catering. The Farm Bureau leaders, Pihos, and two of her staff members were able to discuss several topics important to the ag industry. Those included agricultural education, the state budget, and drought implications and crop insurance. The farmers answered questions about GMO crops and pesticides, livestock care, and environmental regulations. The day concluded with a tour of a Glen Ellyn museum and an overview of local history. Pihos has a strong interest in agricultural issues. She said she is looking forward to working with the Farm Bureaus in both DuPage and McDonough counties, especially on opportunities to educate her suburban constituents about modern agriculture. Christina Nourie is the northeast legislative coordinator for Illinois Farm Bureau. Her email address is cnourie@ilfb.org.
Here at 1st Farm Credit Services we can help you get it! ‡ :H RIIHU RSHUDWLQJ ORDQ SURJUDPV GHVLJQHG WR ¿W WKH ZD\ \RX SURGXFH DQG PDUNHW ‡ %RUURZ D OXPS VXP RU HQMR\ D OLQH RI FUHGLW IRU JUHDWHU IUHHGRP LQ FKDQJLQJ FRQGLWLRQV
ÂŽ
1st Farm Credit ServicesÂŽ YO U R
F I R S T
C H O I C E
‡ ZZZ VWIDUPFUHGLW FRP 1st Farm Credit Services is an equal opportunity provider. :H DOVR RIIHU $JULFXOWXUDO 5HDO (VWDWH )LQDQFLQJ 5LVN 0DQDJHPHQW 3URGXFWV /HDVLQJ $JULFXOWXUDO $SSUDLVDOV 5XUDO &RQVXPHU /RDQV 6WRUDJH %XLOGLQJ /RDQV DQG PRUH
State Rep. Sandra Pihos, second from left, and McDonough County Farm Bureau leaders listen as a re-enactor gives a presentation about the history of DuPage County. Recently, Pihos hosted her ‘adopted’ county Farm Bureau for a daylong tour of her district. (Photo by Christina Nourie)
Page 15 Monday, August 20, 2012 FarmWeek
FarmWeek Page 16 Monday, August 20, 2012
FB iN actioN
Saline, Gallatin FBs reach out at Chicago health fair BY JODY HUGHES
Each August, Farm Bureau members in Saline and Gallatin counties look forward to heading north to Chicago where they meet Cook County Farm Bureau members and help out at the Kid’s Health Fair put on by state Sen. William Delgado (D-Chicago). Senator Delgado, the adopted legislator of Saline and Gallatin County Farm
FarmWeekNow.com Go to FarmWeekNow.com to view a video of Senator Delgado’s health fair in Chicago.
Bureaus, hosts this event each year for the people of Chicago. Thousands of parents bring their children to the event to get materials for
the school year. The county Farm Bureaus got involved with the fair a few years ago by distributing materials to help families understand the origin of their food. The visitors enjoy talking with the farmers and taking home coloring books, Ag Mags, hand sanitizer made from soy, and other materials promoting agriculture. The goal is to help them understand how the food they eat is produced and the nutritional value of it. Many people in the Chicago area are reached through this fair. Jody Hughes is the manager of the Saline and Gallatin County Farm Bureaus. Her email address is salgalfbmanager@clearwave.com.
Left to right, Helen Rushing and her husband, Ron, a Gallatin County Farm Bureau board member; and Wanda Scates and her husband, Hugh David, Gallatin County Farm Bureau president, distribute agriculture educational materials during a recent Chicago health fair hosted by state Sen. William Delgado. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)
Extension workshop focus income opportunities for small acreages Landowners looking for opportunities to increase their income on small acreages may attend a workshop from 8:45 a.m. to 1:45 p.m. Sept. 4 in the University of Illinois Extension building, Lincoln. The meeting is free and open to the public, but there is an Aug. 27 pre-registration deadline for meals. An optional tour of PrairiErth Farm, an organic farm near Atlanta, will be offered. Speakers will discuss organic certification requirements, research on small organic farming, and vertically integrated edible biosystems. Topics will include USDA technical and financial assistance. A Farm Service Agency (FSA) representative will be available to discuss farm records and program eligibility. For more information or to register, contact Prairie Hills Resource, Conservation, and Development Council (RC&D) at 309-833-4747 or email prairie@frontier.com. The workshop is sponsored by the Illinois Association of RC&D, National Association of RC&D, Natural Resources Conservation Service. It is co-sponsored by Blackhawk Hills RC&D, Prairie Hills RC&D, Two Rivers RC&D, and the U of I Extension.
Workshops to feature poultry production The University of Illinois Extension will be offering two Aug. 29 workshops for people who are interested in raising chickens on small farms. The registration deadline is Aug. 27. U of I specialists Ken Koelkebeck and Pam Utterback will discuss topics for both seasoned and new poultry farmers. The first workshop will be from 9 a.m. to noon at the U of I Extension Grundy County office, Morris. For more information, contact Grundy County Extension at 815-942-2725; check the website at {http://web.extension.illinois.edu/gkw}, or contact James Theuri at 815-9338337 or jtheu50@illinois.edu. The evening workshop will be from 6 to 9 p.m. at U of I Extension Ogle County office, Oregon. For information, contact Ogle County Extension at 815732-2191, go online to {http://web.extension.illinois. edu/bdo}, or contact Ellen Phillips at ephillps@illinois.edu or 815-732-2191. The fee is $10 per person with $5 for each additional person from the same homestead.
Page 17 Monday, August 20, 2012 FarmWeek
fROM ThE cOUNTIEs
C
OLES — Farm Bureau will sponsor an informational meeting at 5:30 p.m. Wednesday at the Farm Bureau office for two upcoming trips. The trips will be Dec. 3-7 to New York and July 5-12 to the islands of New England. Call the Farm Bureau office at 3453276 for reservations or more information. ASALLE — The LaSalle County Farm Bureau seed plot day will be at 5:30 p.m. Tuesday, Aug. 28, at the corner of East 12th Road and 2960th Road, Ottawa. A pork chop meal will be served. Adam Day, Northern Partners agronomist, and a Water Street Solutions representative will be the speakers. A ticket is required for the meal and each membership may receive two tickets. There is a $10 charge for each additional ticket. Call the Farm Bureau office at 815433-0371 for tickets or more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday, Sept. 19, for their monthly luncheon and meeting. A roast beef dinner will be served. Sandy Martincic will discuss Medicare Part D. Cost is $8. Call the Farm Bureau office at 217532-6171 by Friday, Sept. 14 for reservations or more information. • The Prime Timers will sponsor a fall foliage brunch cruise on a riverboat Saturday, Oct. 13, in Peoria. Cost is $56. Call the Farm Bureau office at 217-532-6171 by Friday, Sept. 7, for reservations or more information. EORIA — A member family picnic will be at 2 p.m. Sunday, Aug. 26. A fried chicken dinner will be served at 4 p.m. Call the Farm Bureau office for reservations. • Farm Bureau will sponsor a two-day bus trip Wednesday and Thursday, Aug. 29-30, to the Farm Progress Show. Tours will include Kinze, Monsanto, and the Maytag Dairy. Call the Farm Bureau office for reservations or more information. • Photo contest deadline is Aug. 31. Cash awards will be given for best of show and the top three places in three categories.
Name and address should be on the back of each photo. OCK ISLAND — Henry and Rock Island County Farm Bureau Marketing Committees will sponsor a market outlook meeting at 6:15 p.m. Wednesday at the Geneseo Moose Lodge, Geneseo. A buffet dinner will be served. Mike Schaver, Gold Star FS grain merchandiser, and Darin Newsom, Televent DTN senior analyst, will be the speakers. Call the Henry County Farm Bureau office at 309937-2411 or the Rock Island County Farm Bureau office at 309-736-7432 for reservations or more information. NION — Farm Bureau will serve milk and donuts from 6:30 to 8:30 a.m. to children and parents at the 4-H and Junior livestock shows Tuesday and Wednesday during the fair. A table will be set up near the show ring for the breakfast. AYNE — The annual Wayne County Tractor Drive will be Monday, Sept. 3. The 17-mile drive will begin and end at the Wayne County Fairgrounds. Drivers will receive a complimentary photo of them on their tractor. Awards will be given for the oldest tractor, oldest driver, farthest driven, and youngest driver. Tractors must be 1982 or older. Registration fee is $30. Proceeds will benefit the Wayne County Ag in the Classroom program. Go to the website {www.waynecfb.com} for more information. • An antique tractor pull will coincide with the tractor drive on Monday, Sept. 3. The pull will feature weight classes from 3,500 to 8,500 pounds. Entry fee is $20 per hook, with a 50 percent payback. A “King of the Hill” class will feature a $500 winner. Tractors must be 1959 or older. Go to the website {www.usapuller.com} for rules. Call Cam Simpson at 618-516-1702 for more information.
Auction Calendar
Tues., Aug. 21. 1 p.m. Kankakee/Iroquois Co. Land Auction. KANKAKEE, IL. Busey Farm Brokerage. www.busey.com Thurs., Aug. 23. 7 p.m. Macon Co. Land Auc. Wayne C. and Lois A Rice Trust, BLUE MOUND, IL. Wm. Beck Auction & Realty. www.williambeckauctions.com Thurs., Aug. 23. 10 a.m. Tractors, machinery and trucks. Terry D. Quigley Est., SAUNEMIN, IL. Immke and Bradley Auction Service. biddersandbuyers.com/immke Thurs., Aug. 23. Kankakee Co. Farmland Auction. Melba F. Novack Trust Farm. Soy Capital Ag Services. www.soycapitalag.com Fri., Aug. 24 and Sat., Aug. 25. 9 a.m. both days. Consignment Auction. RANTOUL, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Aug. 25. 9 a.m. Consignment Auc. EDINBURG, IL. Cory Craig, Auctioneer. edinburgauction @aol.com
L
M
P
Mon., Aug. 20. 9:30 a.m. Lg. Fall Machinery Auc. TAYLORVILLE, IL. James Micenheimer, Auctioneer. www.micenheimer.com Mon., Aug. 20. 10 a.m. McDonough and Schuyler Co. Land Auction. McFadden & Landis Heirs, MACOMB, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Tues., Aug. 21. 8 a.m. Consignment Auc. HAMILTON, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Tues., Aug. 21. 10 a.m. Farm Auction. C.L. and Linda Palmer, KNOXVILLE, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com or vanadkisson.com Tues., Aug. 21. Will Co. Farmland. Olivet Nazarene/Dubbert Trust Farms, PEOTONE, IL. Soy Capital Ag Services. www.soycapitalag.com
R
LEARNING MORE ABOUT DAIRYING
U
W
“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
George Kasbergen of Stone Ridge Dairy near Bellflower in McLean County gives a group tour of his farm’s milking parlor. The Piatt County Farm Bureau worked with the Monticello Junior Women’s Club and the MOMS group of Crossroad Christian Church to offer the dairy farm tour. Participants saw the cows being milked and followed the process the milk goes through before leaving the farm. Stone Ridge dairy milks 3,200 cows three times a day. Participants said following the tour that they were surprised to learn at how clean the barns were and the measures taken to make sure the cows stay comfortable during intense heat. (Photo courtesy of Piatt County Farm Bureau)
FarmWeek Page 18 Monday, August 20, 2012
proFitability
Begin planning now to protect 2013 corn, bean crops BY JEFF BUNTING
Soon, FS crop specialists will begin booking seed and developing nutrient and crop protection plans for the 2013 crop. We could still see effects of this summer’s drought next year, as it pertains to seed and pesticide Jeff Bunting supplies. Regardless of the crop, there are still a number of factors to consider to enhance profitability next year. It’s amazing as our corn and soybeans struggle in the dry conditions that waterhemp, giant ragweed, and common lambsquarters continue to look unaffected by the hot environment. Herbicide-resistant weeds continue to move across Illinois, and many of you worked with your local crop specialists to develop a plan to address them. Regardless of what you plant next year, it will be imperative to keep agronomic pressure on those weeds to slow their movement and occurrence. This year continues to see more glyphosate used; mostly at a higher rate, not on more acres. New chemistry will continue to be introduced, which will require a thorough evalua-
tion of your current farming practices. Over the next year, your local FS member company will learn about these new technologies and be ready when they are launched. Fungicides were a major input decision over the last four years, and will see a significant decrease in applied acres in 2012. Some fields still received an application, but with limited disease pressure and not fully understanding the plant health benefits in a dry environment, many put that input decision on hold. Next year could be totally different as it pertains to disease pressure, so keep this decision open as you make plans for 2013. Insect populations flourished this year. Insecticide use in 2012 followed the commodity markets and went through the roof. This might have some benefits where western rootworm larvae are once again causing havoc in some Illinois cornfields. It will be important to evaluate your planting intentions for 2013 and determine the need for a soil insecticide. In the not-too-distant future will be fall nitrogen applications. Illinois saw the perfect fall in 2011 to apply nitrogen, with many of those acres
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.
Range Per Head $10.76-$47.02 n/a
Weighted Ave. Price $35.33 n/a
This Week Last Week 72,667 98,596 *Eastern Corn Belt prices picked up at seller’s farm Receipts
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $84.65 $83.98 $62.64 $62.15
Change 0.67 0.50
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 119.89 119.00 0.89 119.61 119.00 0.61
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 138.83 136.89 1.94
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-155 lbs. for 95-130 $/cwt. (wtd. ave. 113.39).
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 08-09-12 15.7 22.2 22.3 08-02-12 12.9 21.2 20.4 Last year 7.1 21.8 39.7 Season total 1311.1 190.4 1451.9 Previous season total 1462.2 233.9 1707.5 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
receiving a nitrogen stabilizer. FS crop specialists advocate managing nitrogen applications as a system. This helps protect the environment while giving the corn crop the chance to
achieve maximum yields. As we bring this crop year to the end, take time to develop a business plan for next year. Taking steps now will put you in a position to
be successful in 2013. Jeff Bunting is GROWMARK’s crop protection marketing manager. His email address is jbunting@growmark.com.
U of I specialist: Soy bales, fall oats feed options BY DANIEL GRANT FarmWeek
Many livestock producers have scrambled in recent months to find enough feed in droughtstressed areas to maintain their herds. USDA this month lowered its national forecast for corn production by 2.2 billion bushels, heralding a rise in feed costs. Meanwhile, production of alfalfa hay this year was projected at 54.89 million tons, down 16 percent from last year. That would be the smallest alfalfa hay crop in the U.S. since 1953. And the situation likely will get worse as the growing season in the state typically ends in early October in the north, mid-October in Central Illinois, and late October to early November in the south. Livestock producers, as a result, should make plans to locate or produce alternative forages, according to Mike Hutjens, University of Illinois Extension dairy specialist. “Now is the time to do the calculations (for forage demand),” said Hutjens, who noted a cow eats about 30 pounds of dry matter per day. Mike Hutjens “After November, you’re done (producing new forage) until spring.” Many farmers have been chopping drought-ravaged corn for silage. But this year it takes about twice the acreage to produce
the same amount of tonnage compared to last year. Farmers as a result also should consider chopping drought-stressed beans for soy hay and planting a fall cereal crop, such as oats, as an emergency forage. A soybean field could yield about 1.5 tons of soy hay per acre. At current prices, chopping beans to make hay would pay in most fields that are projected to average less than 20 bushels per acre, Hutjens reported. “It will feed like alfalfa,” he said. In fact, soybeans were first grown in the U.S. as a forage crop. Farmers in the southern two-thirds of the state also could plant fall oats up until about Sept. 1. “We could still plant oats in Central and Southern Illinois (now through Sept. 1) and expect an adequate crop,” Hutjens said. Farmers who want to plant fall oats at this point should consider using an early-maturing, grain-type cultivar. But timing will be everything for the alternative feeds. Oat production will require rain for germination while yields for soybean bales will decline rapidly once leaves begin dropping from the plants. Farmers who want to learn more about planting fall oats or using drought-stressed crops for feed can view U of I videos online at {http://go.illinois.edu/dairy} or {http://www.livestocktrail.illinois.edu/dairynet/}.
Cattle on feed report has bearish tone
Futures prices reflect the Cattle prices may not jump situation. Cattle prices last any time soon. week traded near $1.20 per USDA on Friday estimated the inventory of cattle on feed as pound, but April futures were about $1.35 per pound. of Aug. 1 at 10.65 million head, “There is talk we could get to up 1 percent from a year ago. $1.40 per pound in April or May The U.S. cattle herd is at its of next year,” Bevers said. “But lowest level since the 1950s. But beef supplies remain high as pro- that’s all premised on whether the American consumer is willducers continue to liquidate aniing to pay for it. mals due to lack FarmWeekNow.com “The advanof feed and high feed prices caused Full details of USDA’s August tage we have by the drought. cattle-on-feed report can be now (in the beef “There prob- found at FarmWeekNow.com. sector) is all meat protein is pretty ably is a slight expensive,” he bearish tone to the report,” said Stan Bevers, econ- continued. “We’re all facing the challenge of higher feed costs.” omist for the Texas AgriLife Beef exports remain relatively Extension Service. “The drought is forcing cattle into the strong but recently could reflect feed yards, but it’s not as bad as weakened demand due to higher prices and a stronger dollar. everyone thought it would be.” U.S. beef exports through Marketings of fed cattle during July totaled 1.91 million head, May were 5 percent above last year’s record. But beef exports unchanged from a year ago. in June were down 11 percent Placements in feedlots during from the previous year. July totaled 1.92 million head, “It doesn’t seem export down 10 percent from last year. Bevers predicted cattle prices customers are quite as inelascould be range-bound near-term, tic as American consumers,” Bevers said. “(Export cusbut long-term he is bullish. “Short-term, we have to work tomers) seem more willing to pay a lot higher prices.” through the numbers we have All customers will be put to now,” he said. “Later on, this the test in coming months, deal is going to get awful tight.”
though, as herd numbers continue to diminish and prices are expected to escalate. “We’ve got challenges ahead of us,” Bevers said. “Here in cattle country we realize we’ve got higher feed prices for at least the next 12 months.” The feed situation is causing a shift in cattle feeding locations. Cattle placements in Texas are down 25 percent from a year ago while placements in Nebraska increased 5 percent. — Daniel Grant
Page 19 Monday, August 20, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Production estimates slashed The shock last week was not that USDA projected smaller corn and soybean crops than the trade expected, but that USDA projected crop sizes traders had been using in their private analyses. The lower numbers put the trade in a quandary of “Where do we go from here?” But the details of those USDA estimates offered some insight into what the future production estimates might contain, especially the one for corn. No matter the trend one uses for corn yields, the 123.4bushel yield estimate points to a crop as bad as those in 1974, 1983, and 1988. While many look to 1988 as a guideline (see the July 16, 2012, issue), the 1974 crop presents an interesting insight. That year was known as the “triple whammy” year. The crop was planted late, got hit by a scorching summer drought, only to end with an early September frost. And yet, that year’s yield was 77 percent of trend, similar to the August estimate for this year’s crop. In reaching its yield estimate, USDA appeared to use an ear weight of near 0.25 of a
pound. That’s off the low end of the scale for the crops produced since 1988, but it is close to what it appeared to be in 1988. We don’t have ear population data from those earlier years, which precludes us from looking at them, but we suspect they wouldn’t be significantly different. The bigger issue the trade seems to be focusing on is the harvested acreage. A number of analysts are looking at 1988’s harvested acreage as a percent of planted, 86 percent. That implies a harvested number of 83 million acres, well below USDA’s 87.4million-acre estimate. But with corn plantings 41 percent larger than that year, and 27 percent larger than the decade of the 1980s, the percentage relationship implies an unusually large acreage harvested for silage, with a cow herd that is smaller. Even using a silage acreage number similar to 1988 and a residual abandonment similar to 1988, the harvested number falls in the 86.7-million to 87-million-acre range. That’s close to USDA’s current forecast. With yields close to the prior drought years and acreage close to the current projection, it’s hard to envision the crop getting significantly smaller than currently projected. And as we found in 1988, the final result may not be quite as bad as initially believed.
AgriVisor endorses crop insurance by
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number
309-557-2274
Cents per bu.
ü2011 crop: Sell remaining old-crop bushels. ü2012 crop: The performance in the wake of the USDA report hints corn prices may have seen a pre-harvest peak. We continue to think having 70 percent of a realistic/conservative yield priced is a good marketing strategy, but don’t exceed your insurance guarantee. ü2013 crop: Leave an order to increase sales to 20 percent if December 2013 futures trade above $6.50. vFundamentals: Even though there is little certainty, there are subtle clues the 123.4bushel USDA yield estimate may be near the low end of forecasts we see in remaining reports, if not the lowest. The change in weather across the Midwest may succeed in stabilizing the crop and production potential near the current level. As we suggested a couple of weeks ago, the August report may have taken the production forecast close enough to reality to cause the focus to shift from supply to demand. ûFail-safe: If December futures close below $7.81, make sure 2012 crop sales are at recommended levels.
Soybean Strategy
ü2011 crop: Wrap up oldcrop sales. ü2012 crop: The shift in weather stands to benefit soybeans more than corn. But the fundamental structure is more precarious. Still, if you are comfortable with your crop’s potential, get sales to 70 percent of a conservative output. Don’t exceed your insurance guarantee. ü2013 crop: Use rallies to $12.90 on November 2013 soybean futures for catch-up sales. vFundamentals: Unlike for corn, both supply and demand for soybeans will continue to play a part in the dayto-day trading. The shift to a weather pattern that is not only wetter but also has more normal temperatures has potential to boost yield slightly. Still, even a small increase won’t be enough to resolve the tight fundamental structure unless demand declines. Chi-
nese demand may figure prominently in the mix. Livestock profitability has evaporated. Processing margins have turned negative. Monthly imports are expected to decline somewhat.
Wheat Strategy
ü2012 crop: Wheat prices are trading in a relatively wide range as traders sort through the changing fundamentals. Use rallies to $8.90 on Chicago September futures for making catch-up sales. ü2013 crop: Make catch up sales with Chicago July futures trading above $8.45.
vFundamentals: Over the last 6-8 weeks, the surge in corn prices was mostly responsible for the increase in wheat prices. Production problems in the Black Sea countries were a positive background influence. In the last week, uncertainty about how long Russia will be able to export wheat has taken center stage. The trade is watching dryness in western Australia as well as the U.S. Southern Plains. But unless the latter two become a major issue, the world will not run short of wheat this year, even if the world feeds even more wheat to compensate for tight feedgrain supplies.
FarmWeek Page 20 Monday, August 20, 2012
perspectives
Rhizosphere gets down to the root of the matter
Claire Benjamin, second from left, answers an FFA member’s question during the state FFA convention. As Illinois Farm Bureau’s youth ambassador, Benjamin has been introducing teens and college students to IFB and its programs over the summer. (Photo by Kay Shipman)
Lending my voice as an advocate for ag My passion for agriculture began when I received my first, and only, film camera at age 8. I took pictures of our fields from every angle. Documented spring floods. Photographed our menagerie of animals. I cringe a little when I think of how many rolls of film my mom developed in those days. I still lug my camera, now digital, around, but with a higher purpose, thanks to Illinois Farm Bureau. In addition to photographing my dad’s emerging corn for a Facebook album or capturing urbanization for an infographic — check it out at {www.illinoisfarmbureauyouthed.wordpress.com} — the image I often see through my camera’s viewfinder is of CLAIRE BENJAMIN the future of the agricultural industry and this organization. At the Illinois FFA Convention, I had the opportunity to assist staff in promoting IFB and its affiliated companies. From a QR code scavenger hunt to social media contests, our exhibit was definitely the most visited in the career show. As a thank you for stopping at our exhibit, we photographed hundreds of FFA members at our photo booth, letting each member take home his or her own souvenir photo. It was great to see the excitement for FFA in their faces as we photographed the members. I believe many of these students will graduate from working together to win Career Development Events to working together to ensure the world’s food security. With camera in hand, I captured the students’ curiosity about the relationship between agriculture and politics on the Heritage and Cooperative Tour in D.C. The photos are posted online at {www.facebook.com/ilfbyea}. Despite the fact that many of the students on the tour did not have traditional farm backgrounds, they were still animated about their role in our ever-growing industry. According to the 2011 Illinois Agricultural Education report, only 10 percent of the 28,895 Illinois students enrolled in agricultural education lives on a family farm. The IFB Membership Action Team recognizes that the demographic of FFA and other agricultural organizations is rapidly changing. Thus, the team began looking for ways to engage with future members as fewer youth
return to their family farm after college graduation. The team sees the role of the Youth Ambassador program as a way to personally introduce these students to this important, grassroots organization. This experience not only has allowed me to use my talents to engage with youth, but it also has given me a unique opportunity to see firsthand the backbone of our organization and work with individuals who are passionate about their careers in agriculture. This reassures me that the Membership Action Team is laying the groundwork for welcoming the next generation of IFB members who, like me, believe in this industry but will serve it in different ways than traditional Farm Bureau members. Conversations about the importance of IFB cannot stop after high school. Those conversations must continue during these students’ college careers to foster the future of our industry and this organization. I am looking forward to returning to the University of Illinois as a senior to spread the message that my peers and I can make a difference. Whether we join an IFB Action team or begin communicating with our legislative representatives about agricultural issues, we can add to the choir of voices advocating for American agriculture. IFB has taught me the importance of being a “voice of agriculture” for students and consumers. The IFB Action Teams are taking the voice of agriculture to Chicago and Champaign public transit systems. Illinois Farm Families is connecting voices of agriculture with voices that are concerned about agriculture to build trust and understanding in Illinois farmers. In my future career, I will remember more than just the ideas and career-building skills I gained here as youth ambassador. I will remember that investing in agricultural students is an investment in the future of our industry and IFB. We must celebrate our successes, big or small, even as our industry faces very real challenges on Capitol Hill and worldwide as the global population continues to grow. Above all, we must continue to be active voices for agriculture in our local, national, and global community. Claire Benjamin will be a senior in agricultural communications at the University of Illinois this fall. She is originally from a grain farm in McLean County.
it from other organisms. One Roots and leaves are like type of fungus known as mycthe night and day of plant orrhizae (mike-oh–ris–ee) anatomy. forms a complex association Leaves famously are celebrated for their ability to trans- with plant roots in which it receives nutrients from the form the sun’s energy into food energy. Without the mira- plant in exchange for providing nutrients to the plant that cle of photosynthesis, the it takes up from the soil. world would be a very differMycorrhizae are good at ent place. taking up the much-needed Roots, on the other hand, phosphorus from the soil and mostly are transferring it to the plant ignored and through its hair-like fungal commonly strands. The vast network of mistreated, strands effectively increases a especially when it comes plant’s root system to a significant degree. to tree roots. Researchers say mycorrhizal People park connections between different on them, drive MARI species of plants results in a vehicles over LOEHRLEIN transferring of nutrients them, dig among the plants via the funthem up for gus. This can occur among construction activities, and groups of different types of often consider them a nuiplants, such as in woodlands or sance. prairies, and even in flower Yet, the world of roots is a beds or vegetable gardens. complex one that involves Microscopic soil-borne more than structurally supworms called nematodes can porting the stems and leaves cause problems for plants above ground. Healthy soil is teeming with when they infect plant roots with disease by feeding on life — large and small. Plant them. roots interact with this enviOne fascinatronment and ing interaction sometimes the soil with roots ‘ T h e w o r l d o f in occurs when from other r o o t s i s a c o m - mycorrhizae plants. The envip l e x o n e t h a t attack certain of nemaronment i n v o l v e s m o r e types todes. The hairimmediately than structurally like strands of surrounding roots is so s u p p o r t i n g t h e fungus form a important it stems and leaves loop around the tiny worms, and even has its above ground.’ then tighten like own name — a noose as the rhizosphere nematode (rize-oh– moves about and becomes sfere). The rhizosphere often has an abundance of microor- strangled. Other mycorrhizae simply attach themselves to ganisms that is greater than and then digest the nematodes. found elsewhere in the soil. These are but a few of the Single-celled algae, found mainly in the top inch or so of many activities going on underfoot in and around that crucial soil, are thought to help stabizone known as the rhizoslize soil structure. They may phere. provide a substantial amount I guess that explains why of organic matter to the soil, my soil science instructor told too. Soil organic matter is of us on the first day of class: utmost and fundamental “Soil is not dirt” — it is so importance to soil (and thus much more. In the words of plant) health. one soil textbook: “The careful Soil scientists now know that roots can have both mutu- preservation of the soil can be the difference between a prosally beneficial and harmful perous society and poverty.” interactions with other organThe first step in caring for isms or other nearby plant the soil is appreciating it for roots. They may regulate the what it is. And a good place to soil microbial community in begin to learn is at the rhizostheir immediate vicinity, cope phere. with herbivores, encourage beneficial symbioses, change Mari Loehrlein is a professor of the chemical and physical horticulture and landscaping at properties of the soil, and inhibit the growth of compet- Western Illinois University’s School of Agriculture, Macomb. Her ing plant species. email address is MMFungi cannot make their own food, rather, they obtain Loehrlein@wiu.edu.