FarmWeek August 6 2012

ThiS year’S STaTe Fair will bring a new addition and an expansion to the Farmer’s Little Helper exhibit. .................................2

The CenTralia animal Disease Laboratory will continue providing “essential” crop testing but animal disease testing will cease. .................3

The DrOUGhT is on farmers’ minds, but other issues also affect the bottom line. Read the policy development insert included in this issue.

Monday, August 6, 2012

Three sections Volume 40, No. 32

2012 farm bill back on table

Cattle drought aid awaits Senate action

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

The U.S. House has approved a one-year drought relief plan for the nation’s cattlemen while shelving proposals to sideline a new farm bill.

On the brink of August recess, the House voted 223197 for a $383 million assistance package for livestock and some fruit farmers.

The bill would reactivate the 2008 farm bill’s Livestock Indemnity Program for 2012 and 2013, along with the Livestock Forage Disaster Program.

Both were part of the farm bill’s Supplemental Revenue standing disaster aid program, which expired last fall. Program extensions would be funded through cuts in fiscal 2013 Environmental Quality Incentives Program (EQIP) funding.

At FarmWeek’s Friday deadline, Illinois Beef Association (IBA) President Jeff Beasley was hoping for prompt Senate action on drought assistance, “to get money out to the livestock producers.”

“Producers suffering from this statewide drought are looking at potential losses due to a lack of forage availability … (and) having to liquidate

herds, etc.,” he told FarmWeek. “(Proposed measures) aren’t going to be problem-solvers, but they’re certainly going to help in the shortterm. I’ve talked to a lot of producers Jeff Beasley across the state. We’re in the same boat, with high feed prices and reduction in cattle prices. Any relief, the sooner the better.”

To the relief of ag groups including Farm Bureau, House leaders abandoned plans to tie drought aid to a straight one-year extension of the current farm bill. That has raised hopes House lawmakers might take up 2012 farm

bill proposals when they return from break in September.

The House bill approved last week allows up to $100,000 in payments per operation, covering 75 percent of the value of animals killed by drought and 60 percent of feed costs for one to three months for on-farm stock, depending on area drought severity.

However, it grants USDA three months to write disaster aid rules before accepting claims and calculating payments.

A variety of ag groups had responded with alarm to House Speaker John Boehner’s (R-Ohio) earlier proposal merely to extend the current farm bill.

“We’re going to redouble efforts in coming weeks to

impress upon Congress that we need a five-year farm bill, and we need it passed this year,” Illinois Farm Bureau National Legislative Director Adam Nielsen reported.

Nielsen was uncertain whether the House would have time in September to pass a farm package, despite Sept. 30 expiration of remaining farm bill provisions.

Lawmakers have rejected the notion of going straight to House-Senate conference committee approval of Senate-passed legislation.

Senate and House Ag Committee farm bill proposals would provide emergency help for the livestock sector, and Beasley stressed the need to “get this thing passed now.”

Current farm bill proposals already would trim con-

servation spending, and Beasley questions the House’s decision to tap EQIP to pay for drought aid (as well as an added amount for deficit reduction).

He stressed program importance in Illinois, where drought-hampered producers must adapt to expanded federal waterquality regulations.

“It’s (EQIP) a cost-share program, and to do good conservation practices and other things that are necessary in operations across the state, that cost-sharing is very important,” Beasley stressed.

“If there’s limited access to available funds, that will slow down (post-drought) recovery for individual livestock operations.”

FSA OKs emergency grazing, haying of CRP waterways

BY KAY SHIPMAN FarmWeek

The national Farm Service Agency (FSA) last week authorized emergency grazing and hay harvest on Conservation Reserve Program (CRP) grass waterways, Scherrie Giamanco, FSA state executive Scherrie director, Giamanco announced.

The expansion also includes seven other wetland-related practices.

In addition to grass waterways, emergency haying and grazing are authorized on CRP acres planted for wetland restoration, farmable wetlands (both pilot wetland and pilot buffer), flooded prairie wetlands, duck-nesting habitat, and rare and

declining habitat.

Illinois FSA sought but did not receive authority for emergency grazing or haying of CRP buffer strips or filter strips.

Don King, FSA program chief specialist, reminded farmers to first request FSA approval for emergency haying and grazing and to obtain a modified conservation plan from the Natural Resources Conservation Service (NRCS).

Farmers may cut hay on only half of each CRP field or CRP field contiguous to a waterway and cannot cut hay within 120 feet of a stream or permanent water body, King stressed.

He explained a farmer could cut hay up to the end of the grass waterway that empties into a roadside ditch or a field, but would have to stop 120 feet from the end of one that empties into a creek

FarmWeek on the web: FarmWeekNow.com

or other permanent water body.

As for leaving half of the acres uncut, farmers also should consider any contiguous CRP acres.

King gave an example of 2 acres of grass waterway contiguous to a 5-acre CRP field with lower-quality grass.

Under the rules, the farmer couldn’t cut hay on half of the total 7 acres, or 3.5 acres.

Conceivably, the farmer in this example could harvest hay on all of the CRP waterway acres and 1.5 acres of the CRP field and leave the 3.5 acres untouched in the contiguous field, King noted.

“That’s why they need to check with their county FSA office to see what they can do,” King said.

Emergency hay harvest must be done by Aug. 31.

Baled hay may be given or sold. Emergency grazing is allowed through Sept. 30.

Eligible farmers may provide haying and grazing privileges to eligible livestock farmers.

With emergency grazing, a farmer must not graze at least a fourth of each field or contiguous CRP field or not more than 75 percent of the stocking rate. All livestock must be removed by Sept. 30.

The overriding CRP policy is to leave grasses and other CRP practices untouched within 120 feet of a stream or permanent water body, King said. That policy superseded requests for emergency grazing and hay harvest on stream buffers and filter strips, he explained.

USDA will do follow-up monitoring and evaluation of those CRP areas to study the effects of the drought and USDA’s emergency haying and grazing actions.

For more information, contact your local FSA office.

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

FarmWeek Page 2 Monday, August 6, 2012

Quick Takes JURY AWARDS MONSANTO $1 BILLION — A jury in Missouri last week awarded Monsanto $1 billion for what it ruled were patent violations committed by rival DuPont.

Monsanto sued DuPont and its Pioneer seed division in 2009 alleging that DuPont violated Monsanto’s patent on Roundup Ready soybean technology by combining it with its own technology, Optimum GAT. The U.S. district court jury award is among the top five patent verdicts ever and is the largest involving agricultural biotechnology.

DuPont is appealing the verdict.

HSUS ACCUSED — The Humane Society of the United States (HSUS) may be facing a classaction civil suit brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act, which allows victims of organized crime to sue those responsible for punitive damages.

HSUS faces alleg ations of racketeering, obstruction of justice, malicious prosecution, and other charges related to a long-running lawsuit it filed and lost against Feld Entertainment, the parent company of the Ringling Bros. and Barnum and Bailey Circus.

The RICO lawsuit filed by Feld claims HSUS misrepresents itself in fundraising campaigns across the U.S. CALLING ALL CENTURY FARMS — The Agriculture’s Lasting Heritage website tells stories of America’s farm and ranch families and how farms that have been operated by the same family for more than 100 years have helped to shape the nation’s history.

Farm families may nominate their century far ms for a feature on the website at {http://AgriculturesLastingHeritage.org/profiles}. When on that site, click on the “Submit Your Own Profile” icon.

It takes a few minutes to answer some questions online and nominate your farm.

Farmers also may submit a nomination for their centur y far m by sending an email to alh@fb.org. Capreno herbicide from Bayer CropScience are sponsors of the website.

(ISSN0197-6680) Vol. 40 No. 32

August 6, 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.

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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

STATE

Pension reform focus of special session

BY KAY SHIPMAN FarmWeek

State pension reform again will be the focus of legislative discussion Aug. 17 when state lawmakers return to Springfield for a special session.

Last week Gov. Pat Quinn called the special session to consider any legislation that addresses pension reform.

Reforming the state pension system is a complex issue that has led the Illinois Farm Bureau Resolutions Committee to seek Farm Bureau members’ views on the issue, said Mark

Gebhards, executive director of IFB’s governmental affairs and commodities division.

In-depth information about the state pension system and the state’s related fiscal problems appears in a special section in today’s FarmWeek.

“We’re interested in gathering our members views on pension reform in Illinois and what Farm Bureau policy should be,” Gebhards said.

If underfunded state pensions are not addressed, they will continue to take larger shares of state funding that otherwise could be spent on programs and services, Gebhards said.

Sarah Weitekamp, an Illinois Pork Producers Association (IPPA) intern from Raymond, discusses the new location and new build for IPPA’s hog birthing center on the Illinois State Fairgrounds. Last week, news media toured the center in its new location near Farmer’s Little Helper. (Photo by Kay Shipman)

Aug. 9-19

Ag exhibit expansions coming to State Fair

Young Illinois State Fair visitors will help plant and harvest crops, feed livestock, and perform other farm activities when they visit the interactive Farmer’s Little Helper exhibit.

The intent is that by playing farmer, youngsters will learn how their food is grown and raised on farms around Illinois.

This year’s fair (Aug. 9-19) will bring a new addition and an expansion to the exhibit: A hog birthing center has been added.

FarmWeekNow.com Listen to comments by Illinois Pork Producers Association’s Tim Meiers about the new hog birthing center at FarmWeekNow.com.

Six sows will give birth in the center during the fair.

The Illinois Pork Producers Association (IPPA) is moving the center from its long-time location near the grandstand to join the agricultural education exhibit, said Jim Kaitschuk, IPPA executive director. Illinois Farm Bureau and the Illinois Corn Marketing Board contributed funds for the center.

Fair visitors also will see a larger variety of horsepower at an expanded farm machinery exhibit beside Farmer’s Little Helper.

“My goal is to educate the general public about the investment in agriculture,” said Allen

Entwistle, Sangamon County Farm Bureau president.

Entwistle is spearheading the machinery exhibit along with Illinois State Fair Manager Amy Bliefnick.

The equipment exhibit will offer a variety of tractors and combines, a planter, tillage equipment, grain carts, augers, feed grinders, livestock trailers, sprayers, and a semi-tractor and trailer.

Each implement will have a sign describing the equipment — and its retail price. Entwistle said some non-farmers are surprised to learn a piece of farm equipment could cost as much as $400,000.

The Farm Bureau stage, inside the Commodity Pavilion, will be the site for interviews with elected officials, fair winners, and other notable guests from 11 a.m. to 1 p.m. RFD Radio personalities Alan Jarand and Rita Frazer will interview guests from Aug. 10-16.

Kris and John Parkhurst of the Shanties will return this year to provide musical entertainment on the Farm Bureau stage. They will entertain from 11 a.m. to 2 p.m. Aug. 10-16 in between interviews.

IFB President Philip Nelson again will present framed photographs to the top junior livestock exhibitors during the Sale of Champions on Aug. 14.

Photos will be presented to the

junior champion and junior reserve champion exhibitors of the steer, barrow, wether, poultry meat trio, meat goat trio, and the meat rabbit trio.

A photo also will be presented to the exhibitor of the supreme champion junior dairy female.

Thirty six teams of Farm Bureau Young Leaders from 32 counties will test their knowledge Aug. 14 during the AgriQuiz bowl. The event will start at 8 a.m. in the theater of the Illinois Building. (See page x for brief reports on the finalists).

For the second year, the state winners of the Young Leader Achievement Award and the Excellence in Ag Award will be named at 11 a.m. also on the Illinois Building stage. (See page 8 for brief reports on the finalists).

State Fair “Illinoisans of the Day” will include Marla Behrends of Carlock, veteran farm broadcaster and associate with the Midwest Dairy Association; Lynn Chard of Rochester, Sangamon County Soil and Water Conservation leader and Extension volunteer; and Ken Getz of Morton, a longtime farmer and 4-H leader.

For a schedule of fair events or more information, go online to {www.illinoisstatefair.info}. — Kay Shipman

Page 3 Monday, August 6, 2012 FarmWeek

DROUGHT

First seven months of 2012 warmest ever No aflatoxin problems seen in early tested corn samples What started out as a year

BY DANIEL GRANT FarmWeek

that was supposed to establish new crop production records instead continues to set records for heat and near-record dryness.

The average temperature in Illinois from January through July was 56.9 degrees, which is a new record high (dating back to 1895) and 5.5 degrees above normal.

Meanwhile, precipitation measurements showed the first seven months of this year were the third-driest on record. Illinois from January through July averaged just 14.05 inches of precipitation, which was a touch more than 1936 (12.2 inches) and 1934 (13.55 inches).

Illinois during the last major drought in the Corn Belt, 1988, received 14.6 inches of rain through the first seven months of the year, which is a half-inch more than this year.

“There’s not much good news anywhere,” said Jim Angel, state climatologist with the Illinois State Water Survey (ISWS). “It’s no surprise we had one of the hottest and driest Julys on record.”

The temperature in July averaged 81.8 degrees (secondwarmest on record to 1936) while precipitation averaged just 1.5 inches in the state (fourth-driest on record and 2.6 inches below normal).

The drought as a result continued to spread through July and so far this month. The U.S. Drought Monitor last week showed 71 percent of the state

BY KAY SHIPMAN FarmWeek

is in extreme drought and 8.4 percent of the state is in exceptional drought, with the rest in moderate to severe drought.

Some scattered rain fell late last week, but Angel noted it will take a lot more to reverse the effects of the drought.

“It’s hard in Illinois to break out of a drought in August,” he said. “Even if we get normal rainfall (about 4 inches), that will just keep it from getting worse.”

Every month so far this year has featured above-normal temperatures and belownormal precipitation.

“Stream flows are way down,” Angel said. “We’ve

been seeing things like fish kills.”

Meanwhile, some communities have implemented restrictions on water use to reserve supplies.

ISWS reported 24 of the 55 community reservoir systems in Illinois are considered to be at risk during extreme drought.

But many are designed to endure drought periods of 18 months or more, so those are not threatened at this time.

Looking ahead, the forecast doesn’t offer much of a break.

“For the most part, it appears the hot and dry weather will continue.” Angel added.

Grain elevator operators will be watching corn aflatoxin levels throughout harvest, but early reports showed no apparent problems in a few tested samples, said the head of the Grain and Feed Association of Illinois.

“I have not heard of any (test results) that were close to the 20 parts per billion (ppb) action level,” Jeff Adkisson, the association’s executive vice president, told FarmWeek Friday.

Adkisson’s information supports other reports that no aflatoxin problems were found in corn samples tested last week.

Aflatoxins are chemicals produced by certain mold fungi and can be harmful or fatal to livestock at certain levels. Generally, aflatoxin levels are highest during hot, dry summers.

“Everybody’s concerned. We’re watching for it (aflatoxin),” Adkisson said.

The federal Food and Drug Administration (FDA) determines rules and whether blending of aflatoxin-contaminated grain can occur, according to Illinois Department of Agriculture officials. At the moment blending is not permitted.

FDA sets guidelines for allowable aflatoxin levels in livestock feed at so many ppb.

During a Grain and Feed Association webinar last week, grain elevator operators were advised that their sampling of corn will be crucial to obtaining reliable aflatoxin test results.

Aflatoxin is not distributed evenly in truckloads of corn, Dr. John Richard, a national mycotoxin expert, said during the webinar.

“It makes a difference where the (sampling) probe is placed,” Richard said.

He recommended 10 random one-pound samples be taken from a truckload of corn, finely ground, and thoroughly mixed before the sample is submitted for testing.

DROUGHT DISCUSSION

Flider: Centralia lab to continue ‘essential’ crop tests The state’s Centralia Animal Disease Laboratory will continue providing “essential” crop testing “until further notice,” but it will not conduct animal disease testing, Acting Illinois Agriculture Director Bob Flider alerted FarmWeek last week.

The Centralia lab will stop providing animal disease testing on Aug. 31 and will transfer those services to the Galesburg Animal Disease Laboratory, Flider said.

“The governor indicated he wants to make sure we have the

essential crop testing and toxicology work” available because of the drought, Flider said.

Dr. Gene Niles, the Centralia lab director, said the lab will stop accepting samples for animal disease testing on Aug. 15.

Results of those tests will be made available by Aug. 31.

After Aug. 31, the lab will maintain its current business hours “until further notice,” Niles said. It will continue to test corn samples for nitrate levels and aflatoxin, he said.

The demand for nitrate test-

ing remains high. On Monday (July 30), the lab received 60 samples for nitrate testing. During July, the lab tested 600 samples for nitrate levels, according to Niles.

Overall, about 4 percent of the tested samples has nitrate levels too high to feed to any animals, Niles said.

State fiscal challenges, the reason for the lab changes, remain, Flider noted. “We are finding ways to be more efficient,” he offered. — Kay Shipman

U.S. Rep. John Shimkus, right, a Collinsville Republican, discusses drought-related concerns with farmer Ray Krausz during a visit to the Clinton County farm of Luke Timmermann, left, as Illinois Farm Bureau board member Darryl Brinkmann (second from left) looks on. Shimkus supported House drought aid for cattle producers last week noting livestock farmers “are not in any insurance or other protection program at this time.” (Photo by Adam Nielsen, IFB national legislative director)

U of I specialist offers advice on feeding of 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: Do I need to test for nitrates?

Meteer: Yes, elevated levels of nitrates have been well documented across the state. The

test is inexpensive.

Q: When do I test for nitrates?

Meteer: In most cases, before harvesting and after ensiling. Testing before harvest is a must if the droughtstressed corn will be grazed or green chopped.

If the corn will be chopped for silage, test it after the ensiling process has finished, at

least three to four weeks after ensiling. Do not feed it to livestock before knowing the test results.

Q: Where do I get a nitrate test?

Meteer: Labs in Illinois and surrounding states offer testing services. ADM in Quincy and Agri-King in Fulton are certified with the National Forage Testing Association. A

complete list is available at {http://web.extension.illinois.edu/oardc/downloads/43 921.pdf}.

Q: What happens if I feed too much high-nitrate corn silage to my livestock?

Meteer: They can get nitrate poisoning. The symptoms are blue-gray discoloration of skin, difficult and rapid breathing, weakness, lack

of coordination, rapid heartbeat with a subnormal temperature, and dark, chocolate-colored blood. Death occurs soon after the symptoms appear.

Q: Can I chop after a rain?

Meteer: Wait three to five days. After rainfall, the increase in available moisture causes plant nitrate uptake to increase. The plant needs time to metabolize the nitrates.

FarmWeek Page 4 Monday, August 6, 2012

the drought

Lawmakers, livestock groups seek ethanol waiver

BY MARTIN ROSS

FarmWeek Growing concerns about the U.S. corn supply and the ethanol industry came to a head last week as a group of lawmakers proposed paring back on 2012 biofuels mandates.

Former House Ag Chairman Bob Goodlatte (R-Va.), Steve Womack (R-Ark.), and Mike McIntrye, (D-N.C.) led 156 House members last week in asking U.S. Environmental Protection Agency Administrator Lisa Jackson to waive the Renewable Fuels Standard (RFS2) for the rest of 2012. RFS2 sets annual targets for biofuels use through 2022.

The lawmakers reportedly

requested the waiver to “help ease corn supply concerns and protect American consumers, livestock producers, and the economy.”

A coalition of major livestock and poultry groups earlier petitioned EPA to waive this year’s requirement that fuel blenders nationwide use a combined 13.2 billion gallons of corn-based ethanol.

Livestock interests also seek a waiver of at least part of EPA’s 2013 RFS2 mandate, which calls for 13.8 billion gallons of ethanol use.

The producer coalition estimated a 2012 waiver would reduce by roughly 4.7 billion bushels the amount of corn that would be used to produce ethanol. They cited forecasts

projecting as little as 11.8 billion bushels of corn will be harvested this year.

Meanwhile, Neil Jakel, general manager of Rochellebased Illinois River Energy, challenged estimates that hold the energy industry accountable for consuming 40 percent of the nation’s corn supply.

He argued “a third of that’s going back into the marketplace” as distillers dried grains (DDGs), an ethanol feed coproduct and corn replacement.

“Net” ethanol corn consumption thus is closer to 20 to 23 percent, Jakel told FarmWeek.

“Considering a waiver needs to be done carefully and deliberately with ade-

Consumers also crop insurance beneficiaries

As the House prepares to return to the “2012” farm bill, farm state lawmakers must defend a crop insurance system expected to incur huge payouts this season.

With direct payments out of the picture under both U.S. Senate and House farm bill proposals, such groups as the Environmental Working Group (EWG) have keyed in on crop insurance as a new target for ag budget cuts.

Anticipation of heavy 2012 claims (Country Financial had received more than 1,800 production loss claims as of last week) has drawn media attention to federal premium subsidies and the purported cost of insurance to the taxpayer.

EWG estimates the total federal cost of the insurance program in Illinois at more than $1 billion between 1995 and 2011. Iowa State University ag economist Bruce Babcock suggests drought-related claims nationwide could run more than $10 billion, noting that “when we (non-farm consumers) buy insurance, we have to pay the full premium.”

However, American Farm Bureau Federation international and ag policy specialist Dale Moore argues consumers, as well as farmers, are long-term insurance beneficiaries. While the drought is expected to spur consumer food prices in 2013, he argued farm survival via insurance protection will help avert even larger food cost increases or perhaps even future supply shortfalls.

“I won’t argue that there aren’t some policies folks might be able to take (undue) advantage of,” Moore told FarmWeek. “But when you get down to crop insurance itself, most producers look at what risk they need to protect to ensure they’re able to operate again next year.

“Yes, some farmers are going to get wiped out (have a total crop loss), and they are going to get a crop insurance payment. Good Lord willing, that payment will enable them to keep their bankers happy and have enough left over ... so they can start again next year.”

Crop insurance is “the only meaningful risk management option available to farmers today,” especially with the lack of a current federal standing disaster program, Illinois Farm Bureau risk management specialist Doug Yoder said.

Yoder noted 80-85 percent of U.S. farmland is insured, “meaning those farmers should have the financial wherewithal to plant a crop again next spring and continue to grow our food.”

In the absence of insurance, any congressional disaster programs likely would be “100 percent taxpayer-funded,” Yoder maintained.

Insurance costs are high because of inherent weather, global market, policy, and other risks. Yoder said federal subsidies are “a discount to the total crop insurance premium,” and notes the farmer share of the premium “is not cheap.”

Based on average per-acre corn and soybean premiums, out-of-pocket expenses can run nearly $25,000 per year for an Illinois farmer with about 1,000 acres. In 2011, Illinois farmers spent $409 million out of pocket on premiums.

And although farmers invest heavily in crop insurance, Yoder stressed “they often don’t see a return.” Over the last six years, Illinois corn and soybean farmers have received an average 38 cents for every $1 spent on insurance premiums.

“It’s like car insurance or homeowner’s insurance,” Moore said. “Each year, the farmer pays a premium. If he has a good year, he doesn’t get that premium back.

“And before he gets his first check, a farmer has to have a loss. Let’s say he buys a 75 percent policy. He has to lose 25 percent before the policy kicks in. On top of that 25 percent, he also has the premium he paid.” — Martin Ross

quate information and the right information,” said Illinois Farm Bureau President Philip Nelson. “We’re not convinced that we’re there yet. Crop conditions are bad, but we need to see where we actually end up. We need to explore options at this point.”

EPA likely will work with USDA and other agencies in making a decision, Purdue University ag economist Chris Hurt suggested.

USDA can hone in more precisely on the size of the harvest, said Hurt, who assumes EPA will need to see USDA’s Sept. 12 or Oct. 11 crop report before it “would have a lot of confidence that they’re getting

close to the final number.”

“My speculation would be that it would be the October report before that (RFS2) decision would be made,” Hurt told FarmWeek.

“They’ll want to see those numbers.

“Then, there would be the question of whether there could be political influence regarding the decision. If they’re now just three weeks before the election, that probably favors EPA waiting until after the election to announce what it’s decided.”

A November decision likely would leave 2012 RFS2 targets in place, while EPA could at least temporarily suspend or adjust 2013 requirements, Hurt said.

Ensuring protection: crop insurance Q & A’s Country Financial crop insurance officials and Illinois Farm Bureau risk management specialist Doug Yoder answer questions about crop insurance losses, requirements, and potential payments.

What should I do if I think I’m going to have a production loss?

File a claim with your agent right away. Once you’ve reported a loss, leave the crop in the field until an adjuster inspects it. Destroying a crop without an inspection could jeopardize any loss payments.

All acreage reports should be processed by Sept. 1. Once you receive a Summary of Coverage declaration, review it immediately and promptly report inaccuracies to your agent.

What farming practices are required to collect a potential crop insurance indemnity?

Federal guidelines require you to maintain good farming practices in order to collect possible loss payments. An example is spraying crops if insects are destroying them.

Are there requirements for leaving test strips to meet federal crop guidelines?

Yes. You must leave one Representative Sample Area (RSA) or “strip” per 10 acres of land. There must be an added strip for every additional 40 acres.

Strip width should be no less than 10 feet; Country asks that the strip equal the row width of the combine head and that it run the length of the field. The strip area must not be an end row. Insureds cannot leave strips on their own.

The strips must be approved by an adjuster and proper paperwork signed by the insured and the adjuster for the claim file.

If an adjuster has granted permission to chop or destroy a crop, how quickly will I receive my claim check?

All claims are adjusted on a unit basis. These situations must be dealt with on a case-by-case basis and the insured should consult his or her adjuster.

If a farmer planted prior to his insurance eligible early-planting date, will that impact his fall claim?

Planting prior to that date only potentially impacts replant coverage, and does not affect fall claim in any way.

What is Country Financial doing to prepare for the anticipated claims volume?

Country has added nearly 20 certified crop adjusters over the last three years and now has 122 adjusters. Its’ Crop Claims Department has established best practices to assure timely contacts and inspections.

Will Country be making partial payments?

Under certain circumstances. Talk with your adjuster to determine whether you may be eligible.

When is my 2012 premium due for spring crops?

Premiums are due by Sept. 1. Interest begins accruing Oct. 1 at 1.25 percent per month on the unpaid balance. If the premium is paid prior to Nov. 1, no interest is owed. Open claims do not stop interest from accruing. Premiums will be withheld from indemnity payments.

Country cannot waive interest.

What’s the maximum price movement for crop revenue policies (RP)?

There is a 200 percent price upward change limit between the base and harvest price. For example, if the harvest average daily corn settlement price comes in at $12, harvest price is limited to $11.36 (base price of $5.68 times two).

There is no downward price change limit between the base price and the harvest price. RP policies with the Harvest Price Exclusion will continue to use the base prices.

Do acres that are not harvested count toward county average yields for Group Risk Income Plan (GRIP) policies?

Unharvested acres count in the GRIP county average. USDA’s Risk Management Agency calculates county yield averages by dividing total county production by planted acres.

Page 5 Monday, August 6, 2012 FarmWeek

productioN Illinois Wheat Forum Aug. 21

Good yield generates interest in more wheat

BY DANIEL GRANT FarmWeek

The 2012 growing season likely will be remembered by many farmers as a disaster for corn and soybean production.

But lost in the shuffle of the constant news reports about the historic drought is the fact that wheat production this summer actually was very good.

USDA is estimating the Illinois wheat yield this year averaged 64 bushels per acre.

That would be the thirdhighest on record in the state and 5 bushels higher than the 10-year average, according to Emerson Nafziger, University of Illinois Extension crop systems specialist.

“As we have seen in some dry years before, wheat might be the highest-yielding crop for some producers in 2012,” said Nafziger, who noted the dry weather minimized disease pressure in many Illinois wheat fields.

The combination of good wheat output and the possibility of quick corn and soybean harvest this fall has many farmers thinking about planting more wheat.

“We’re going to have a lot of wheat planted this fall,” Kyle Brase, a Madison county farmer, seed industry representative, and secretary of the Illinois Wheat Association (IWA), told the RFD Radio Network.

U of I Agronomy Day

Verdict on corn rootworm Bt resistance expected soon

BY KAY SHIPMAN FarmWeek

Illinois farmers soon may learn whether western corn rootworms have become resistant to Bt corn in Illinois.

On Agronomy Day (Aug. 16), University of Illinois entomology professor Mike Gray said he hopes “to definitely say

FarmWeekNow.com Visit the Agronomy Day website for additional details by going to FarmWeekNow.com.

one way or another” if Bt resistance has been confirmed in Illinois. Such resistance was confirmed last year in Iowa.

Although Gray has seen unacceptable levels of corn root damage in a number of fields, he said he hadn’t received results that confirm Bt resistance.

The 2012 growing season has been ideal for corn rootworms, he said.

“When the rootworms hatched one month early, they found themselves in ideal soil (conditions). They don’t like saturated soils,” Gray said.

Not only did the larva find good dry soil conditions, they also found plenty of corn roots to eat because farmers had

planted early, he added.

“Rootworm injury is more significant during dry years,” Gray said.

At the U of I Crop Research Center off St. Mary’s Road south of the Urbana campus, field tours will start at 7 a.m. and leave every half hour until noon.

Research presentations will include corn rootworm resistance, behavior in refuge and transgenic corn, and new management strategies.

Other tour topics include emerging crop diseases, weed control strategies, nutrient management, and corn and soybean genetics.

New this year will be spray nozzle demonstrations at 10 and 11 a.m. in the exhibition tent.

Scott Bretthauer, Extension specialist in pesticide safety education, will demonstrate the different types of nozzles available.

Bretthauer said his 30-minute presentations will cover balancing spray coverage with the risk of spray drift. Before and after the demonstrations, Bretthauer will be available to answer questions about drift and efficacy.

The tent will feature displays by ag researchers, commercial vendors, and student clubs.

For more details, go online to {http://agronomyday.cropsci.illinois.edu/}.

Construction to limit U of I Agronomy Day site route The only access to the University of Illinois Agronomy Day, Thursday, Aug. 16, will be via the east end of St. Mary’s Road off Lincoln Avenue in Urbana.

The west end of St. Mary’s Road is closed because of construction.

Signs will direct visitors to the Agronomy Day exhibition and the parking area. The event starts at 7 a.m.

“Especially for livestock producers. They need some grain and (wheat) will give it to them a few months earlier (next year) than if they’re going back to corn.”

Brase said wheat plantings should help use some of the excess nitrogen in the soil that was not used by the burned up corn crop.

He also noted herbicide carryover shouldn’t affect wheat as much as corn or beans in a typical rotation.

The main limiting factor for planting more wheat this fall, besides weather uncertainty, is the seed supply.

“Wheat supplies will be tight, so producers need to contact their retailer and seed distributor to talk about picking up some wheat, if that’s what they want to do,” Brase said.

Nafziger cautioned against planting the crop too early, though. The ideal time to plant wheat in Illinois ranges from mid-September in the north to mid-

October in the south.

Farmers interested in planting wheat or learning more about wheat production will have the opportunity to gather more information later this month.

IWA will hosts its annual Illinois Wheat Forum Aug. 21 at the Knights of Columbus Hall in Highland.

Key issues to be discussed at the forum include wheat production research, diseases that affect yield, farm profitability, crop insurance, and the farm bill.

More information about the forum, including an agenda for the event, is available at the IWA website {www.illinoiswheat.org}.

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FarmWeek Page 6 Monday, August 6, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: More of the same hot, dry weather. We did manage to get 0.25 of an inch of rain on Tuesday morning to give us some temporary relief. The corn looks like it is under stress again, and we will need some more rain to fill out the potential we have, which may only be about half of what we had last year. The beans still have some good potential if we get some rain to fill out the pods. There was some hay being made last week with disappointing yields, but I guess any hay this year is a good thing.

Pete Tekampe, Grayslake, Lake County: Another hot, dry week in Lake County. Not much rain for the week, but cool nights have helped salvage our crops.

Corn still has good color but very short stalks. Ears are small but are mostly pollinated. I wonder if the stalk can handle the ear for very long. Beans are short and flowering. Hopefully, there is enough moisture to fill the pods. Not much hay has been baled. Rain was forecast for over the weekend.

Leroy Getz, Savanna, Carroll County: Rain for the week came in last Sunday (July 29) at 0.1 inches. July totaled out at 0.95 of an inch. Everyone is talking crop insurance claims. I did my Aug. 1 yield check.

Avoiding the field edges and known wildlife damage areas, I used the University of Illinois yield calculator. First-year non-GMO corn following alfalfa with only manure applied for fertilizer should yield 142 bushels per acre. A highly fertilized field would yield 10-foot-tall corn and 161 bushels per acre.

A clay hill field of second-year corn: 128 bushels an acre. Two other fields of continuous corn came out at 131 and 183. These are very early projections, but there will be something to combine.

Ryan Frieders, Waterman, DeKalb County: We had the biggest lightning show that I have ever seen early Tuesday morning.

Showers that came with the storm were very spotty. We received from 0.2 of an inch to 0.7 of an inch of rain for the week.

Spider mites have moved into the beans again and sprayers are being utilized. Early yield counts for corn show an enormous range of 95 to 165, soybeans 20 to 40.

Ken Reinhardt, Seaton, Mercer County: Another dry week.

Soybeans were the big topic of discussion. Many fields have few if any pods. They are still blooming, but time is running out for much hope for them. The few fields planted in April are doing relatively better with good pod counts. I took a plane ride to view crops in Mercer County. There were markedly fewer wet spots than in years past. There was a fair amount of replanted corn. I found what turned out to be green snap on a farm from a June storm that I had not known about.

Ron Moore, Roseville, Warren County: No rain to report for the last week. The corn is now all dented and the milk line is about one third down the kernel. That is almost one month earlier than normal. Harvest will start at the end of August in this area. The soybeans are quickly running out of time to be helped by any rain. There are a fair amount of pods, but the beans in them are flat and small. The last of the creeks in my pastures are now dry. We have moved all of the cattle home for water and feed. I just hope the wells hold out.

Jacob Streitmatter, Princeville, Peoria County: It was another hot and dry week here.

The crops keep deteriorating. The corn is basically cooked. It is all starting to dry up, what is not already dead. I thought as of last week soybeans had hope, and with rain in a week or so they could hold on, but that week has passed. Combines will tell the sad story in a few weeks. Yields will be low no matter what.

Tim Green, Wyoming, Stark County: It was another warm dry week. Beans are starting to show the effects of the warm, dry weather. Rows are starting to open up a little bit. Patches on the field are starting to show up.

There has been spider mite spraying, nothing big-time yet, but everyone is watching and holding their breath. A nice rain would help.

Everyone has given up on the corn. The worst parts of fields are starting to fall over.

Mark Kerber, Chatsworth, Livingston County: More of the same — hot and dry. I just returned from a cross-country motorcycle trip where I rode through the desert only to find when I returned home that the desert had spread to the eastern Corn Belt. Our yards looked as brown as they do in January.

Corn is toasted and soybeans are wilted. The crops look better in some areas to the north of us that received some rain. There has been some spider mite spray activity on fields that have a chance for a yield. Make sure you pay your federal crop insurance premium when it comes due. October and November is when federal crop fall prices are determined for corn and soybeans. We are a little concerned that the emotion and volatility will be gone to support these high prices on which our payment is based upon.

Ron Haase, Gilman, Iroquois County: As the hot and dry weather continues, the yield prospects dwindle, and private wells slow down and others stop flowing.

One storm passed through on Tuesday, but we did not benefit from it. Two of our farms that were on the edge of the system received 0.2 of an inch and 0.15 of an inch while the rest received only a few drops. The farm that received 0.2 of an inch will not gain much from it because many plants in that field do not have ears of corn. What few ears the plants have are small. Our corn planted the third week of May is running out of time to catch a beneficial rain. The forecast remains bleak with next Saturday being our next chance of rain. The corn we planted in April varies a lot due to pollination problems, kernel abortion, and barren stalks. Corn development ranges from the R2 (blister) growth stage on up to the R5 (dent) growth stage.

Most fields in the area are at or near R5.

Many soybean fields are in the R3 (beginning pod) or R4 (full pod) growth stage. The pods remain flat at this point. The local closing bids for Aug. 2 were: nearby corn, $8.08; new-crop corn, $8.02; fall 2013 corn, $6.06; nearby soybeans, $16.78; new-crop soybeans, $16; fall 2013 soybeans, $12.42.

Brian Schaumburg, Chenoa, McLean County: Yet another hot, dry week points to an early harvest that likely will start around the last of August. Yield estimates are in a wide range from 0 to 150 bushels on corn, but shallow kernel depth will likely lower that top end. Soybeans also are at the end of the rope in many areas and yields could go from 15 to 50 with many 35 to 40 averages if it rains soon.

Elevators, seed companies, and others are planning for year end meetings. Corn, $7.99; fall corn, $7.92; soybeans, $16.86; fall soybeans, $15.91; wheat, $8.25.

Steve Ayers, Champaign, Champaign County: Our “5 minutes before it’s too late” countdown is now -3 with only a few spotty showers that fell Tuesday. Big news last week was the Premier Co-op crop survey Aug. 1. Everyone expected wide variability and that’s what happened. From 21 locations primarily in Champaign County, the 2012 average was 117 bushels per acre. Last year’s average was 166 and 2010’s was 185 bushels per acre. The 2012 high was 193 bushels per acre at St. Joseph and low was 50 bushels per acre at Elliott in southern Ford County. St. Joseph had a 4-inch rain Mother’s Day that seems to have been a corn-maker for the area. A Douglas County crop survey July 31 found a 99 bushels-peracre average with a range of from 17 to 177 bushels per acre. A few fields are being treated for spider mites. We need the bean maker rain soon!

Wilfred Dittmer, Quincy, Adams County: I guess it can still rain. Our gauge recorded 1.4 inches on our side of the road.

That isn’t going to go very far in soaking up 6 feet of dry fields, but it may help some of the bean fields fill the late pods, if there are any. This is the first that we have seen any amount of rain for quite some time, but the drought continues across the heart of our country.

Carrie Winkelmann, Tallula, Menard County: We received 0.2 of an inch of rain Wednesday night. It was definitely welcome, but it will not help the beans very much because of the high temperatures we have been dealing with. We are working on getting all of the machinery ready for what we assume will be a record early harvest.

Tom Ritter, Blue Mound, Macon County: Wow! It still can rain! Thursday afternoon and evening we caught an unexpected shower which totaled only 0.3 of an inch but that is a start.

Hopefully, that will provide some humidity for the next front coming through and generate heavier rains. At this point we are not needing tenths, we are needing inches. It is a very critical time for soybeans if they want to continue to bloom or even add additional blooms. This is the week that we must have rain. Corn is pretty well through. Most of it is dented. I’m hearing ear samplings of moistures of anywhere from 20 to 40 percent depending on variety, type of ground, and planting date. Prospects for corn are all over the board. We sampled fields down around the 100-bushel-per-acre level, but we have also had a few isolated fields on good black ground that we are getting yield checks above 150 bushels. Harvest probably will be next week for some people, but the week after for more, depending on stalk quality.

Todd Easton, Charleston, Coles County: Before we reached the end of July, harvest officially began in Coles County. I hope it never happens again, because Mother Nature had to burn up the corn crop to do it. An experimental plot planted on March 15 went across the elevator scales in the lower 20 percent moisture range and shattered local records for the earliest harvest. Then if that wasn’t shocking enough, it rained. The rain gauge out back of my shop that I thought had a hole in it held 0.3 Thursday night. The hope among producers is that this will fill the pods of soybeans that have almost reached the 11th hour in this drought. With most corn still having some green and testing well above 40 percent moisture, the majority of harvest will occur well into August, but July corn harvest technically did happen, and I hope it never does again.

Jimmy Ayers, New City, Sangamon County: This past week we had a change — rain fell from the sky! Totals were between half an inch at our place to hardly any in the northern half of the county. The southern half got a little better relief. Crops suffered bad from high temperatures on Tuesday, Wednesday, and Thursday. Moisture ranges are between 28 and 40 percent and yields from 60-120. It will be an interesting fall. Farm Bureau canceled its yield tour because officials didn’t feel it would provide an accurate assessment.

Doug Uphoff, Shelbyville, Shelby County: We received 2.4 inches of rain in the county. The corn crop is cooked and still no pods or flowering in soybeans. It was a nice rain but I doubt it will help yields with the high temps being forecast. Maybe it will be a start to recharging soil moistures for next year. I’m going to enjoy my son’s wedding in Florida and enough about farming for this week.

David Schaal, St. Peter, Fayette County: Finally rain! It can still rain here in Fayette County.

Storms moved through on Thursday evening along with some wind. My gauge caught an inch. I am not sure if it will help the crops. Probably too little, too late.

Page 7 Monday, August 6, 2012 FarmWeek

CROPWATCHERS Jeff Guilander, Jerseyville, Jersey County: As of Friday, there is some moisture in the air.

What has made it to the ground just leaves specks in the dust, but that is more than we’ve had in the last couple of months.

Some corn is being harvested, either silage or short-season corn planted early. Results are highly variable with yields from 40 to 140 bushels per acre and the extremes better or worse depending on the temperature during pollination. Most soybeans are still trying to hang on, but the pod counts are very low and flowering is almost over. Some of the beans planted on the tougher ground are yellowing already. In the next couple weeks I imagine the speculation around here will be over as more combines start rolling. Hopefully, we will all be pleasantly surprised.

Dan Meinhart, Montrose, Jasper County: After a very hot, dry week, thunderstorms moved through the area on Thursday evening. It was a general rain where everybody got something.

Amounts varied from 1 to 3 inches. The rain was too late for most of the crops. Beans have very few pods, and most are empty.

Many shrubs and trees are dying. Silage chopping is almost complete. Watering livestock is a major problem as many ponds are very low or dry. Creeks and rivers also are very low. There was a slight chance for more showers over the weekend, and a slight cooling trend is expected.

Rick Corners, Centralia, Jefferson County: Well it went north this time — the rain that is.

I don’t think Webster’s book will have enough words to describe this year. The crops will be planted again next year and hopefully, things will be better. But the trees and landscaping that are dying will take a lifetime to replace.

Dave Hankammer, Millstadt, St. Clair County: When I returned home from my bi-state road trip, I was glad to see 0.2 of an inch of rain in the rain gauge.

Showers had moved through the area on July 29, bringing some relief to the high temperatures and settling the dust where rain actually fell. For the week, we experienced 100-degree temperatures, no rain, and one morning of fog. The corn crop has moved into the dough stage with some of the crop expressing the typical dry down of the plant.

Some fields have brown spots where plants ran out of moisture and haven’t reached their highest potential. Soybeans are approximately 2 feet tall. The plants continue to bloom and are trying to set pods. There are some small pods on the plants and they have a long way to go in these drought conditions. The doublecropped soybeans are 12 to 16 inches in height and have started to bloom. Plant population in some fields has been reduced due to the lack of moisture. Just like their first-crop counterpart, the double-crop beans still have average potential if they would catch some rain. Local grain bids are: corn, $7.78; soybeans, $16.42; and wheat, $8.05.

Randy Anderson, Galatia, Saline County: We had some scattered showers with rain totals of about 0.6 to 0.2 of an inch. But we’ll take it. Had a great time last week, went camping with the family at Rend Lake with some fishing, swimming, and some bike riding. It was nice to make memories that we can talk about years from now other than the drought. Some numbers for you: We have had 14 inches of rain since January, and we are 14 inches behind normal.

For the month of July, we had 15 days above 105 degrees, and more above 95 degrees. To sum all that up, July was like a toaster oven.

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

Dean Shields, Murphysboro, Jackson County: The past weeks weather was still very hot, but we did happen to get a pretty good rain Thursday night.

General coverage was an inch or inch and a half, and more in some places, but still some places didn’t get any at all. The corn crop suffered some damage from the north rains that came with some strong winds. My neighbor lost a roof off a shed. The corn is about done for. The rain helped the beans out. I noticed Thursday a lot of them had blooms again, and hopefully, they will fill those blooms out. The wheat beans have been lying in the ground since wheat harvest.

I noticed a few of those beans are sprouting now and starting to come up. The wineries’ grape crops are doing pretty well due to the dry weather, so that is one good note for Jackson county.

Kevin Raber, Browns, Wabash County: I emptied 3 inches of rain out of my gauges Friday morning. I didn’t see much standing water except for a few road ditches. It won’t help any of the corn, but this rain will help the beans. My next report should have an estimated corn yield for Wabash County.

Ken Taake, Ullin, Pulaski County: I hate to sound like a broken record but it continues to be more the same: hot and dry. We had some showers through the area on July 29. All we received was a little less than 0.2 of an inch. A lot of areas received more than that, but we were not that fortunate. Otherwise, there was a continuation of temperatures in the triple digits and dry weather. If we don’t receive some rain soon, soybeans will be very poor again.

Hopes for those are fading rapidly. I guess we can always look forward to next year.

Farmers get early jump on harvest; yields variable

BY DANIEL GRANT FarmWeek

A handful of far mers in parts of South-Central Illinois g ot an early star t on corn harvest last week.

And results were as spotty as many of the drought-ravaged crop stands.

“Harvest officially began (the last few days of July),” s a i d To d d E a s t o n , a Fa r m We e k C r o p w a t c h e r from Coles County. He said having combines in the field set a local record for the earliest corn harvest. “I hope it (July harvest) never happens again, because Mother Nature had to burn up the corn crop to do it.”

Moisture readings of some of the early-harvested c o r n , m o s t o f w h i ch wa s p l a n t e d i n M a r ch , r a n g e d from the high teens to the low 20s.

“Some corn is being harvested, either silage or shortseason corn planted early,” said Jeff Guilander, a Cropwatcher from Jersey County.

“Results are highly variable with yields from 40 to 140 bushels per acre.”

Allen Entwistle, president of the Sangamon County Farm Bureau, also plans to harvest some corn early.

“There’s been some spotshelling of some of the March stuff,” he said. “What

we’re really concerned about is ear-dropping.”

Storms that rolled through Central Illinois late last week provided some rainfall relief but also packed high winds that flattened cornfields in some areas. The Litchfield area was one affected by the crop-leveling winds.

“Stalk quality is not g ood,” said Earl Williams, president of the Winnebago County Far m Bureau in Nor ther n Illinois. “This is not a year you can let the crop dry in the field.”

The majority of the corn crop (71 percent) and soybeans (56 percent) in the state last week was rated poor or very poor.

Crop maturity is well ahead of average, though, as 18 percent of corn was dented as of the first of last week, compared to the fiveyear averag e of 4 percent, while 61 percent of soybeans were setting pods, compared to the average of 36 percent.

Yield estimates calculated last week were not good.

A Far m Futures sur vey of 1,800 far mers nationwide projected average yields of just 117.6 bushels per acre for cor n and 35.8 bushels for beans, well below U S DA’s Ju l y e s t i m a t e s o f 146 bushels for corn and 40.5 bushels for beans.

USDA will update its yield projections in its highly anticipated crop report Friday.

In Illinois, county crop tours estimated corn yields of just 99 bushels per acre in Douglas County, 117 bushels

in Champaign County, and 126 bushels in Christian County. An annual crop tour was canceled in Sang amon County.

“I just don’t think you can get a uniform sample (to estimate yields),” Entwistle said.

Williams, a veteran farmer, said he usually can estimate his yields within a few bushels. But not this year.

“I have no idea how to estimate what I’m going to get,” he added.

LEGISLATOR VIEWS BAD CORN

Earl Williams, center left, president of the Winnebago County Farm Bureau, discusses the effects of the drought in a burned up cornfield in sandy soil near Rockton with Gary Shedd, right, a county Farm Bureau board member. The field tour was part of an Adopt A Legislator visit last week by state Rep. Elaine Nekritz (D-Northbrook), center right. Jennifer Wakeley, left, a member of the Winnebago FB Young Leader Committee, also took part in the field tour. The field, which produced few ears, likely will be chopped for silage. (Photo courtesy of the Winnebago County Farm Bureau)

FarmWeek Page 8 Monday, August 6, 2012

Young leaders

The 2012 Young Leader Achievement Award finalists Illinois Farm Bureau’s Young Leader Achievement Award recognizes extraordinary accomplishments in farming and leadership.

This year’s award winner will be honored at the Young Leader Agri-Quiz Bowl at the Illinois State Fair Aug. 14 in Springfield.

Participants are judged on their management, innovation, and self-initiative, as displayed through their farming operations. Leadership ability and involvement and participation in county Farm Bureau or other civic, service, or community organizations also are major factors in selecting the top young farmer.

The first place winner receives a $50 FastStop gift card, a one-year membership in the Illinois Corn Growers Association (ICGA), $2,500 cash, a Case IH 14 horsepower/two-passenger Scout, and expense-paid trips to the American Farm Bureau Federation (AFBF) annual meeting in Nashville, Tenn., the AFBF Young Farmers and Ranchers conference in Phoenix, and the GROWMARK annual meeting in Chicago.

The first runner-up will receive $1,500 and a one-year ICGA membership.

Three producers are finalists in this year’s competition.

Here they share their thoughts about dealing with current challenges and maintaining farm traditions, while leading the industry into the future.

Interviews for this feature were conducted by Daniel Grant.

Chad and Ashlie Broster Mount Carmel, Wabash County Chad and Ashlie Broster grow corn, soybeans, wheat, and grain sorghum (milo) on a third-generation farm.

They farm about 4,000 acres in Edwards and Wabash counties in partnership with Chad’s parents, Allen and Debbie. Ashlie also works as a registered nurse at Deaconess Women’s Hospital.

“My grandparents started the farm in 1960 (on about 200 acres),” Chad said.

“We’ve grown (the operation) quite a bit since then.”

Chad said he knew he wanted to make a career of farming when he became an FFA president. He joined IFB Young Leaders when he was in high school.

Chad and Ashlie have two children, Cole, 7, and Audrey, 5.

“We try to expand what we can (on the farm) to make room for the next generation,” Chad said.

However, the Brosters now are focused on improving areas of their operation other than adding land due to historically high farmland prices.

“We’re doing more upgrades on the farm, such as tiling, ditchwork, and updating our (grain) drying system,” Chad said.

The grain drying system is instrumental for the

Brosters’ emphasis on specialty grains. They grow white and yellow food-grade corn, which generates premiums of about 40 cents per bushel for the yellow corn and 65 cents for the white corn.

The food grade corn is sold to Azteca Milling where it is processed into corn flour.

“We’re growing (corn) for direct human consumption,” Chad said. “We take pride in that.”

The Brosters also grow seed beans.

The biggest near-term challenge for the Brosters and most other farmers in the state is the drought.

“We’ve used a lot of risk management strategies to help buy out some of our (grain) contracts,” Chad said. “Going forward, (farmers) need to carry good levels of crop insurance.”

Darin Doehring Windsor, Shelby County

Darin Doehring is a fourth-generation farmer who grows corn, soybeans, wheat, alfalfa, and clover. He also has a cow/calf operation near Windsor in Shelby County.

Doehring started his beef cow herd with three cows on six acres as a supervised ag education project in FFA. He now has a 648-acre, 40-head operation.

“When I was growing up, I was always around the farm with my dad and grandpa,” he said. “It (farming) is something I always wanted to do.”

This year, though, has been a challenging one for Doehring and other livestock producers as the drought has burned up pastures, reduced hay production, and driven corn and soybean prices higher due to the anticipation of short crops.

“It’s been affecting us severely,” said Doehring, who plans to chop more corn for silage.

Fortunately, he has enough silage in storage from previous harvests that he has no plans of thinning his herd. In fact, he may bring in some replacement cows.

“We’re not thinking about liquidating,” he said. “If anything, we may update and switch some genetics around.”

Doehring has been in IFB Young Leaders for nearly 15 years. He participated in eight YL Ag Industry Tours, including a recent trip to Boston.

“I have met a lot of other farmers who maybe do things a little differently than what we’re doing,” said Doehring, who noted he enjoys YL for the social and networking opportunities.

Doehring said he was shocked but glad to find out he was a finalist for this year’s Achievement Award.

“I will represent the state and the ag industry the best I can,” he said.

Looking ahead, Doehring plans to expand his pasture land and increase the size of his cattle herd. He also is considering re-entering the hog business and expanding a trucking business.

“I’m planning to increase opportunities on the farm to keep it profitable,” he added.

Lynn Rohrscheib Fairmount, Vermilion County

Lynn Rohrscheib farms in a partnership with her parents, Vernon and Mary Rohrscheib, and her sister, Stacey.

They grow corn, soybeans, wheat, and alfalfa. The family also operates a custom application business that sells seed, chemicals, and fertilizer.

The Rohrscheib’s farm is based in Fairmount in Vermilion County, but they grow crops and operate their business in Champaign and Edgar counties as well. They also serve clients in Vermilion County, Ind. “I help with the day-to-day procedures and help organize where the employees are going to be and what they’re going to be doing,” Rohrscheib said.

She said she helps with everything from planting crops and baling hay to changing oil and transporting seed and chemicals. The family farms about 7,500 acres.

“You’ve got to be very flexible on our farm,” Rohrscheib said. “You never know where you’re going to be needed.

“But that’s the exciting part,” she continued. “You never know exactly what you’ll be thrown into on any given day.”

Rohrscheib noted farming is her lifelong dream.

She joined Young Leaders when she was in college and has been active ever since.

She has served on her YL county Governmental Affairs Committee the past four years.

“I’ve gotten into politics to make sure ag has a voice at the state and national level,” Rohrscheib said.

She hopes eventually to serve on her county Farm Bureau board. She also hopes to help grow her family’s operation.

This year, she said the biggest issue on her farm is the devastating drought.

“We finished planting early, everything looked good, and then all of a sudden Mother Nature shut the faucet off,” she said. “We haven’t had a year like this where it’s been so hot and dry.”

“I’m thrilled to be a finalist,” Rohrscheib added.

“I’m looking forward to the State Fair.”

Pair of finalists selected for 2012 Young Leader Excellence Award

Nate and Tonya Wiersema (Carroll County) and Brad and Paula Zwilling (Champaign County) are the finalists for the 2012 Young Leader Excellence in Ag Award.

The winner of this year’s award will be announced Aug. 14 at the Agri-Quiz Bowl at the Illinois State Fair in Springfield.

The Ag Excellence Award recognizes county Farm Bureau Young Leaders who may not be full-time farmers for their efforts in agriculture and leadership achievement.

The Wiersemas grow corn, soybeans, and wheat and feed 200 head of feeder cattle on their farm in Chadwick.

They also work in ag-related jobs off the farm. Nate is a crop insurance

adjuster and Tonya works for Illinois Farm Business Farm Management.

“We farm in two counties,” Tonya said. “In Carroll County, it doesn’t look too bad, but our crops in Ogle County are not looking so good.”

The Wiersemas got involved in Young Leaders to help deliver a positive message for ag and educate the general public about farming and food production.

“We want to be leaders in agriculture and get people more excited about agriculture,” Nate said.

The couple has two children, Bryson, 4, and Brynley, 2.

The Zwillings, who still help out on their families’ grain farms in the state, live in Fisher.

Brad is an analyst for Illinois Farm Business Farm Management (FBFM) in Champaign-Urbana. Paula is a stay-athome mother with the couple’s three boys, Dylan, 7, Caleb, 5, and Nathan, 2.

“I am able to take my experience growing up on a farm and give back to our (FBFM) members and report information to the general public about farming so people are more well-

informed,” Brad said.

He is chairman of his county’s Young Leader Committee. Paula is chairman of her county’s Women’s Committee.

“We’re not directly involved in agriculture, so that’s why we joined Farm Bureau,” Paula said. “We want that connection.”

The Zwillings hope eventually to start a small farm of their own.

Page 9 Monday, August 6, 2012 FarmWeek

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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 6, 2012

commodities

USGC report: Asia will shape food production trends

BY DANIEL GRANT FarmWeek

Asian countries have developed such a growing and changing appetite for food that world crop production trends are expected to be reshaped to meet the needs of consumers there.

That was one of the main findings of a futuristic report released by the U.S. Grains Council (USGC) titled “Food 2040.”

The report noted the world population is expected to grow by about 2 billion, to a total of 9.1 billion people, by 2040.

Food demand during that time is expected to increase by 70 percent.

Much of the growth in population, per capita spending, and food consumption will occur in Asia, according to the report.

If China eventually boosts its per capita spending on food

Farmers elected to commodity boards The Illinois Department of Agriculture (IDOA) last week announced the results of elections for positions on three state commodity boards.

Farmers elected to serve three-year terms are as follows: Illinois Corn Marketing Board: Lou Lamoreuz, Lanark (District 2); Paul Jeschke, Mazon (District 5); Kent Kleinschmidt, Emden (District 8); and Larry Hasheider, Okawville (District 14).

Illinois Sheep and Wool Marketing Board: Harold Davis, Odell (District 2), and Lance Steckel, Winchester (District 5).

Illinois Soybean Program Operating Board: Duane Dahlman, Marango (District 2); Jered Hooker, Clinton (District 10); Wendel Lutz, Dewey (District 11); Donald Guinnip, Marshall (District 14); Timothy Scates, Carmi (District 16); and David Droste, Nashville (District 17).

The boards decide how industry checkoff dollars will be spent.

Checkoff dollars come from assessments levied at the first point of sale. State law sets the assessment rates at 5/8 of a cent per bushel for corn, 1/2 of 1 percent of market value for soybeans, and 2.5 cents per pound for sheep and wool.

Auction Calendar Mon., Aug. 6. 10 a.m. Johnson Tractor Absolute Inventory Auction.

JUDA, WI. Powers Auction Service Co. www.johnsontractor.com Wed., Aug. 8. Online Only Unreserved Auction. bigiron.com Wed., Aug. 8. 6 p.m. Madison Co. Land Auction. Eckart Family Members, COLLINSVILLE, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com Thurs., Aug. 9. 10 a.m. 80 Acre Farmland Auc. Walter “Skip” Shaw, GIBSON CITY, IL. Bill Kruse, Auctioneer.

Thurs., Aug. 9. 10 a.m. 2 80 Ac. Tracts of Farmland. Clarence Cox Estate, GIBSON CITY, IL. Bill Kruse Auctioneer.

Thurs., Aug. 9. 10 a.m. Farm machinery. Lee and Cheryl Younker and Danny and Peg Geiss, PEOTONE, IL. Richard A. Olson and Assoc. richardaolson.com Thurs., Aug. 9. 7 p.m. Christian Co. Farmland Auc. Jeff and Helen Rhoades Estate, ASSUMPTION, IL. Wm. Beck Auction & Realty.

Schroeder/Huber LLC. wmbbeck@ctiwireless.com or www.schroederhuber.com Thurs., Aug. 9. 2 p.m. Moultrie Co. Land Auction. CHAMPAIGN, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com CANCELLED ~ Thurs., Aug. 9.

Summer Farm Closeout and Consignment Auc. Agri-Tech Inc. Fri., Aug. 10. 9 a.m. Henry Co. Land Auction. ANNAWAN, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com Sat., Aug. 11. 10 a.m. Real Estate, Approx. 84 Ac., House, Barn, etc.

Lindell and Linda Walker, ANNA, IL. Joe Ollis Auction Service. www.ollisauction.com Sat., Aug. 11. 11 a.m. Robert

Petersen, GURNEE, IL. Gordon Stade, Auctioneer. www.gordonstadeauctions.com Sat., Aug. 11. 9:30 a.m. Farm machinery. Anderson Bros., SOMONAUK, IL. Chris Wegener, Mike Espe and Joe Wegener, Auctioneers. www.go2wegenerauctions.com Mon., Aug. 13. 9 a.m. Closing Out Farm Auc. Don and Barbara Mattingly, BROCTON, IL. Bauer Auction Service.

Mon., Aug. 13. 10 a.m. Douglas Co. Land Auction. Murray Wise Associates, LLC. murraywiseassociates.com Wed., Aug. 15. 10 a.m.

Winnebago Co. Land Auc. The Vern A. Davis Trust Farm, ROCKTON, IL. www.mgw.us.com Thurs., Aug. 16. 10 a.m. Estate Sale. Terry Johnson Estate, GIBSON CITY, IL. Bill Kruse, Auctioneer. billkruse.net Sat., Aug. 18. 10 a.m. 200.52 Ac..

Kathleen Collins and Randall Collins, GENESEO, IL. Roy Holmstrom Auctioneering and Real Estate.

Sat., Aug. 18. 9 a.m. Large MultiFarmer Absolute Auction.

OKAWVILLE, IL. Riechmann Auction. www.riechmannauction.com, www.topauctions247.com or www.biddersandbuyers.com 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. Will Co. Farmland.

Olivet Nazarene/Dubbert Trust Farms, PEOTONE, IL. Soy Capital Ag Services.

to the same level as South Korea, it will have a food budget that is roughly three times larger than the U.S., Tom Dorr, USGC spokesman, said recently at the Illinois Farm Bureau Commodities Conference in Normal.

“The report suggests a series of transformations that will create opportunities for producers, agribusinesses, and anyone else in the ag value chain,” Dorr said. “Better lifestyles and better diets (in Asia) ultimately will drive our markets.”

In fact, the situation already is unfolding, according to Dorr. World food demand by 2020 is expected to grow by 200 million tons for meat, 500

million tons for dairy products, and 90 million tons for vegetable oil.

And people in the area where much of that growth is expected to occur (Asia) likely will not be able to produce enough food. China in recent years transitioned from a net exporter to a net importer of corn.

“If you go to East and South Asia, it’s densely populated with limited arable land,” Dorr said. “They’re not going to create a commodity production system like ours.”

Asia is, however, expected to become a major player in the biosciences arena as it strives to improve food output and nutritional value, according to the report.

The report also suggested the following: Markets in China will increase in importance as a pricing point for global commodities; demand will increase for food products that provide more health benefits; demand for product differentiation and branding will increase; spending in the food service sector will grow; and there will be a proliferation of niche markets.

“U.S. producers will be challenged to respond (to changing food demands),” Dorr added. “We have an opportunity to win a competitive share in these markets.”

To view the Food 2040 report, visit the USGC website at {www.grains.org}.

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.

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 11 Monday, August 6, 2012 FarmWeek

FarmWeek Page 12 Monday, August 6, 2012

the cutting edge

Biofuels liquid gold in global projections

BY MARTIN ROSS FarmWeek

BP’s chief bioscientist charts biofuels’ growing impact in displacing crude consumption around the globe.

At a recent bioenergy conference in Champaign, BP’s John Pierce predicted continued decline in demand for liquid fuels in the developed countries through 2030. However, he said the slack will be “more than taken up� by demand from the world’s emerging economies.

Pierce anticipates oil demand in the transportation sector “slowing down and becoming flat� in part as a result of improved fuel economy. But he notes “(that) demand is being picked up by biofuels.� “We think biofuels will be

an increasing share of the fuel market. We see big growth in Brazil, the U.S., and the like.

You already see biofuels repre-

ing more involved in agriculture,� according to the scientist. The oil company is following weather forecasts and

‘We think biofuels will be an increasing share of the fuel market. We see big growth in Brazil, the U.S., and the like.’ — John Pierce Chief bioscientist, BP

senting 20 to 25 percent of the growth of these liquid (transportation) fuels, and we expect that to accelerate in the future. From a BP perspective, we see biofuels being every bit as competitive as deep water (oil exploration).�

That’s why BP is becom-

has recruited agronomists to help beef up what he terms “an underdeveloped supply chain.�

Strengthening that chain is going to require “lots and lots of biofuels facilities,� Pierce stressed. A 70-million-gallonper-year biomass facility will

require access to 50,000 acres of production and heavy equipment investment, he estimated.

While cellulosic biofuels commercialization is “taking longer than initial expectations,� he sees companies now realizing “we really have to get down to it and start producing.� Pierce anticipates major operations — including BP’s 36-million-gallon-per-year plant at Highland, Fla. — taking off within the next year or two.

The cellulosic sector must

focus on “affordable, scalable, and sustainable� production, he said. Ultimately, “real scalability� will require use of energy crops and other “on-purpose� feedstocks, supplemented by crop residues or other wastes, Pierce said. “And sustainability is going to be very important,� he emphasized. “It’s bad from a business point of view to invest in something you want to have around for 30 years and then discover there’s something bad about it.�

Three counties to host conservation bus tours The Soil and Water Conservation Districts (SWCDs) of DeWitt, Macon, and Piatt counties will host county conservation bus tours this month. The tours will be Aug. 14 in Macon County, Aug. 15 in DeWitt County, and Aug. 16 in Piatt County.

Registration will start each day at 8 a.m. with buses departing at 8:30 a.m. Contact the respective SWCD for details about bus departures.

Each tour will end about 11:30 a.m.

A variety of conservation practices will be discussed, including wetlands, block chutes,

grass waterways, rock chutes, water and sediment control basins, windbreaks, and filter strips.

The local county Farm Bureaus will partner with the county SWCDs to provide a free meal for tour participants.

Pre-registration is encouraged through the participating county SWCDs: DeWitt County: 217-935-6504, extension 3; Macon County: 217877-5670, extension 3; and Piatt County: 217762-2146, extension 3, or by stopping by the respective offices.

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Paul Meyer of VMS Dairy in St. Rose discusses the milking process of his robotic milking system during the Illinois Milk Producers Association’s firstever Dairy Technology Showcase held last week in Southern Illinois. Host farms were Paul and Lisa Meyer and the Hasheider family (Elm Farms) in Okawville. Robotic milking systems recently were installed on both farms, and the showcase provided an opportunity for other dairy farmers to view the technology. Both farmers reported increased production and healthier udders on their cows since installing the robotic systems. (Photo

by Jim Fraley, manager of the Illinois Milk Producers Association)

Datebook Aug. 9-19 Illinois State Fair, Springfield.

Aug. 16 University of Illinois Agronomy Day, 7 a.m. to 2 p.m., Crop Sciences Research and Education Center, Urbana.

Aug. 24-Sept. 3 DuQuoin State Fair, DuQuoin.

Aug. 28 Meet the Buyers event, Highland Community College conference center, Freeport. Registration deadline Aug. 24. Call 815-2354125.

Sept. 26 Meet the Buyers event, University of Illinois Extension office, Springfield. Registration deadline Sept. 24. Call 217-753-5200.

Page 13 Monday, August 6, 2012 FarmWeek

energy

Diversity helps biodiesel producer weather challenges

BY MARTIN ROSS FarmWeek

Diversity is a major corporate buzzword today. But for the Renewable Energy Group (REG), it’s key to survival in the face of policy uncertainty, market shifts, and the impact of drought on biodiesel feedstocks.

Soy oil accounts for 50 percent of U.S. biodiesel produced today — REG spokesman Alicia Clancy deems the traditional feedstock a “good, clear, clean raw material” for fuel conversion and storage.

Roughly 7.5 pounds of soy oil are needed to produce a gallon of biodiesel.

Clancy, whose company runs two of Illinois’ four major biodiesel operations, acknowledged the possibility of a shorter soybean crop this season. But she noted meal remains the primary ingredient of soybean crush, and argued “the market will determine where (soy oil) gets used.”

REG employs a “lower-cost feedstock model,” tracking price and availability of various fats and oils. That model

helped the company weather a rough 2010, when Congress allowed the federal biodiesel tax credit to lapse (see accompanying story), and it reduces risk when circumstances such as drought influence feedstock supply or price.

Feedstocks reportedly account for 85 to 90 percent of biodiesel production costs. Illinois Soybean Association consultant Rebecca Richardson notes the major value of soy oil consistently has been for food unlike corn in the ethanol industry.

Inedible corn oil, an ethanol co-product, offers one emerging reduced-cost biodiesel option that also can help ethanol plants cope with rising corn prices and tight margins, Clancy said.

“In the livestock industry right now, you’re seeing concerns about drought — people are culling cows or selling off their herds,” she added. “That actually has created a glut of protein in the beef and pork markets short-term.

“If you’re selling more cattle, selling more hogs, that

increases the availability of animal fats for the biodiesel industry in the short term.

“Long-term, things may correct on the commodity crop side, but the longer-term effect on the livestock side may be that animal fat is a little less available, which means the price goes up.”

Some 50 prospective biodiesel feedstocks to date have been identified. REG’s Seneca plant can handle 26, including various grades of soy oil.

The option of tapping “leftovers and waste” such as poultry fat, beef tallow, and restaurant waste grease has offered an economic advantage for alternative feedstock selection.

REG recently tested 36 “new” feedstocks, including hemp, algae, fish, and coconut oils. Thirty-four proved compatible with the company’s existing facilities, while the other two would require some modifications in production.

“For the biodiesel side, it’s really all about the pricing of the raw materials vs. availability,” Clancy stressed.

Renewable Energy Group-Seneca quality assurance manager Ausra Kalesinskas, left, educates reporters on the measures taken to ensure various feedstock supplies are suitable for biodiesel conversion and that the fuel is ready to ship. (Photo by Martin Ross)

Jeremy Shanks, left, lead operator at Renewable Energy Group’s (REG) Seneca biodiesel plant, offers fuel production and distribution details for a late-July media tour sponsored by the Illinois Soybean Association (ISA), as ISA Chairman Bill Wykes, center, looks on. Writers from the Chicago Tribune and other regional news outlets, as well as producers and co-op representatives, gathered insights from the tour about biodiesel feedstocks, quality-control measures, markets for the renewable fuel, and ongoing policy issues related to biodiesel demand. (Photo

by Martin Ross)

RFS2 ‘No. 1 market driver’ for biodiesel To date, Renewable Energy Group (REG) has sold biodiesel in 49 states.

Hawaiian Electric Co. uses REG fuel in backup generators. The Northeast is a growing market for ag-based “Bioheat” heating fuel.

And the Iowa company, with plants in Danville and Seneca, continues to supply fuel to farmers, truckers, and school districts in Chicago and well beyond. Amid Illinois’ favorable biodiesel tax treatment, blends account for roughly half of the state’s onroad diesel use.

Ford, Dodge, and General Motors endorse use of “B20” (20 percent biodiesel) in heavy-duty pickup trucks, and the marine and mining industries increasingly are being drawn to biodiesel’s environ-

mental-”clean air” benefits.

But despite ongoing growth, the federal Renewable Fuels Standard (RFS2) currently remains “the No. 1 market driver in the U.S. biodiesel industry,” REG spokesman Alicia Clancy stressed.

The industry is now asking the administration to formally approve the U.S. Environmental Protection Agency’s proposed 1.28-billion-gallon “biomass-based diesel” blending mandate for 2013 — a 280-million-gallon increase over the current 2012 target. Last year, the industry set a new production record of 1.1 billion gallons, but Clancy argued total nationwide production capacity currently is closer to 2 billion.

“It’s not a capacity issue,” she emphasized. “(A 1.28-billion-gallon target) shows us

sustainable growth of about 300 million gallons a year.

That’s the amount we believe the industry can easily grow by

But the longer (federal officials) wait, the more uncertainty there is.”

The industry also is await-

‘We’ve been able to prove we can produce more than a billion gallons.’

— Alicia Clancy Renewable Energy Group

each year. We’ve been able to prove we can produce more than a billion gallons.

“We want to be able to keep growing that requirement so our industry doesn’t hit a level of stagnation. We want to slowly grow the number, so our infrastructure and feedstock production can keep up.

ing congressional extension of the $1-per-gallon biodiesel blenders tax credit, which expired Dec. 31. Industry output dropped from 506 billion gallons in 2009 to 309 million gallons with a previous lapse in the credit, before rallying to 1.1 billion gallons with the combination of the 2011 tax

credit and the implementation of the RFS2.

The Senate Finance Committee last week approved a tax package that would extend the credit through 2013. Meanwhile, some House and Senate lawmakers have proposed replacing the blender’s incentive with a $1-per-gallon production credit for biodiesel manufacturers, ideally to help them offset raw materials costs.

The proposed production credit would be a three-year credit. That, in Clancy’s view, would encourage industry investment in biodiesel terminals or other renewable fuels infrastructure. — Martin Ross

FarmWeek Page 14 Monday, August 6, 2012

RuRal Development

Rural residents’ concerns to be crux of strategic plan

BY KAY SHIPMAN FarmWeek

The challenges of rural Illinoisans, raised in six public sessions, will shape strategies to be developed by the Governor’s Rural Affairs Council.

Lt. Gov. Sheila Simon, the council’s chairman, said she was surprised by rural residents’ optimism despite the challenges they face.

“Folks in rural Illinois thought the next five years would be better,” Simon Sheila Simon told FarmWeek.

Recently, Simon released a report of findings from the sessions held around the state in the spring.

Written by the Illinois Institute for Rural Affairs at Western Illinois University, the report summarizes general and regional challenges and offers recommendations.

Rural Illinoisans share concerns about a lack of jobs and access to affordable health care, but they also face challenges that vary among regions of the state, according to Chris Merrett, the institute’s director.

For example, access to high-speed Internet varies among regions. Broadband would be one way to address

common rural needs of government, health care, education, and economic development, Merrett said.

People who attended the sessions often weren’t aware of existing government programs and services, Simon and Merrett pointed out.

Simon said she focused on listening and not interjecting her thoughts during the public comment period.

“People would say, ‘There should be a program or there should be a law.’ I would bite my tongue not to say, ‘Oh, guess what? There already is,’ ” she said with a laugh.

Merrett added, “We think there already are existing solutions to some (issues).”

Simon suggested discussions and networking among rural residents would help people become more aware of what is available from state government.

The next step will be formation of a working group by the Rural Affairs Council.

That group will “sift through the report” and for-

USDA grants Mt. Vernon bank preferred lender status Peoples National Bank of Mt. Vernon has received preferred lender status for USDA’s guaranteed farm loan programs, Scherrie Giamanco, Illinois Farm Service

Rose Parade, Las Vegas, Grand Canyon & Arizona Tour

Travel with oth e Farmers r !

Sedona & Red Rocks – Phoenix & Scottsdale

11 Days

Departs December 29, 2012

from

$1548*

Start in Los Angeles (four nights) with a city tour of L.A., Hollywood, Beverly Hills, and an exclusive, pre-parade, after public hours, float building and viewing at the Rosemont Pavilion with included dinner. Watch the artists put the “finishing touches” on the floats unencumbered by public crowds! On Tuesday, January 1, 2013, enjoy your reserved grandstand seats at the Rose Parade! On Wednesday, January 2, depart for Las Vegas (two nights). The following day, travel to the Grand Canyon for your overnight stay in the park with an opportunity to marvel at the ever changing colors during the sunset and sunrise, with included breakfast. Then depart to another astonishing landscape - the Red Rocks of Sedona.

You will also visit Montezuma’s Castle enroute to Phoenix and Scottsdale where you will spend your final two nights with an included city tour.

Hawaiian Farm Tour 2 Weeks - 4 Islands

from

$2098*

Travel with other farmers on January departures in 2013 on this famous Hawaiian Farm Tour offered by YMT every year since 1974. You’ll visit all four islands with sightseeing on every island including Honolulu & Pearl Harbor, Punchbowl Crater, The Iao Valley, Lahaina; The Maui Gold Pineapple Plantation; the Wailua Riverboat Cruise & Fern Grotto; Kauai Steel Grass Farm, growing bamboo, vanilla and cacao; and on the “big island” a Hilo Orchid Nursery and Macadamia nut factory; Black Sand Beaches; a Giant Fern Tree Forest; Volcanoes National Park; Mountain Thunder Coffee Plantation; and The Natural Energy Laboratory of Hawaii, a reseach facility of ocean thermal energy conversion that not only generates electricity but enables Aquaculture to flourish. Next visit The Big Island Abolone farm that produces its own feed: 13 tons of home grown algae per week. Includes a flower lei aloha greeting, 14 nights in quality hotels, baggage handling, inter-island flights & transfers, plus your Polynesian tour director on every island.

Visit Cuba, Its People & Culture 9 Days

Join other Farmers departing January 29, 2013

from

Join YMT on this unique cultural and educational program to legendary Cuba. From Miami, you’ll fly to Havana to begin your exploration of the rich heritage of this island nation. Highlights include five nights in Havana, two nights in Cayo Santa Maria, Old Havana, Revolucion Plaza, the Che Guevara Museum, Ernest Hemingway’s farm, and visits to the scenic towns of Remedios and Cienfuegos. Witness Cuba’s picturesque rural life and agriculture in Vinales and go to a tobacco farm to see the growing, drying and cigar rolling process of Cuba’s most famous export. Learn about authentic daily Cuban life and the island’s history and culture through meaningful interactions with the local people throughout the itinerary. Musical and artistic performances along with interactive painting and dance lessons will give you unique insight into the colorful island culture. This fully-escorted program includes eight nights hotel accommodations, round-trip airfare from Miami to Cuba, a full-time schedule of activities per the itinerary, a professionally-trained Cuban guide and 15 meals.

US law requires that all participants of this program adhere to the full time schedule of people-to-people activities. *Airfare to/from Miami is extra.

Caribbean Cruise Plus...New Orleans Tour

11 Days

Departs February 22, 2013

from

Agency state executive director announced last week.

The Preferred Lender Program is a new one for elite agricultural lenders who have experience with USDA guaranteed loans.

The program was developed to allow streamlining and adding flexibility of loan application and servicing requirements through experienced lenders.

USDA reviews and approves a lender’s credit management system, and then the lender originates and services guaranteed loans based on those procedures.

Under the preferred lender program, lenders submit only a one-page application and a narrative describing the loan applicant’s credit factors.

Approval is automatic if USDA does not respond within 14 days of receiving a completed application.

For more information, contact your local FSA office.

$2598*

Discover Cuba’s colonial history and vibrant culture! YMT’s fully-escorted Cuba program is operated under U.S. government people-to-people license # CT-18935 issued to YMT Vacations, and the itinerary will include a full-time series of educational exchanges and interaction with local people. You’ll never forget the scenery, history and culture of this beautiful island nation!

er Join othrs!

Farme

ward its recommendations on the issues upon which the Rural Affairs Council may have the largest impact, Simon said.

To obtain a copy of the full report, go online to {www.ltgov.illinois.gov} or call Simon’s office at 217-558-3085 in Springfield, 618-529-6452 in Carbondale, or 312-814-5240 in Chicago.

$1998*

Start in New Orleans for two days and nights and tour ‘The Big Easy,’ including the French Quarter, St. Louis Cathedral, Bourbon Street, the Ninth Ward devastated by Hurricane Katrina, Lake Pontchartrain, the new flood gates and rebuilt levees, plus travel on St. Charles Avenue, following the Mardi Gras route. Then before boarding the NCL Star, visit the museum “Living with Hurricanes: Katrina and Beyond.” Aboard ship enjoy the renowned Norwegian Freestyle cruise experience with 10 different dining rooms with no assigned seating. In the Western Caribbean visit the exciting ports of: Costa Maya, Mexico, with Mayan Ruins and unspoiled coastal paradise; Belize City, Belize (in Central America), an English colony as late as 1963; Roatan, Bay Islands, Honduras, a peaceful, eco-tourist’s dream, teaming with marine life and prestine reefs; and Cozumel, Mexico, an isolated island with a laid-back charm.

After seven nights at sea, spend a final night in New Orleans to tour two, pre-civil war mansions and plantations. *Air supplement from some airports.

*Price per person, based on double occupancy. Airfare is extra.

For details & itinerary call 7 days a week:

1-800-736-7300

Tuesday: • Bryce Anderson, DTN chief ag meteorologist • Michelle Damico, Michelle Damico Communications • Bob Vogl, Renewable Energy Fair coordinator Wednesday • Tim Schweizer, Illinois Department of Natural Resources • James Taylor, senior fellow at the Heartland Institute • Amy Bliefnick, Illinois State Fair manager • Bruce Johnson, Stephenson County Farm Bureau manager Thursday • Illinois Pork Producers Association representative • Ron Hanson, University of Nebraska Friday: • Sara Wyant, AgriPulse publisher • Dale Durchholz, AgriVisor analyst • Alan Jarand, RFD radio director

Page 15 Monday, August 6, 2012 FarmWeek

FarmWeek Page 16 Monday, August 6, 2012

IFB IN ACTION TALKING COTTON

IFB Action Teams elect leaders Illinois Farm Bureau Action Team members recently met in Bloomington and elected officers for 2013.

Those elected to leadership positions for each of the four Action Teams are as follows: Quality of Life Team — David Wessel (Cass-Morgan Farm Bureau), chairman; Marion Barr (Hancock County), vice chairman.

Public Relations Team — Mitch Heisler (Henry County), chairman; Kevin Miller (Effingham County), vice chairman.

Membership Team — Darrin Storm (Shelby County) chairman; Monica Green (Douglas County), vice chairman.

Education Team — Carleen Paul (Madison County), chairman; Dana White (Woodford County), vice chairman.

Paul and Wessel also were elected chairman and vice chairman, respectively, of the Action Coordinating Council.

As vice chairman, Wessel will serve on the 2013 IFB Resolutions Committee.

Carlene Paul, Madison County, and David Wessel, Cass-Morgan Far m Bureau, were elected chairman and vice chair man, respectively, of the Action Coordinating Council.

Illinois Farm Bureau board members met last week with Missouri and Arkansas Farm Bureau boards to better understand issues facing farmers in those states. Arkansas rice and cotton farmers related that investment in irrigation is their form of crop insurance and expressed concerns about the elimination of direct payments in farm bill proposals. Here, Buddy Jones (blue shirt) with the Adams Gin Co. in Leachville, Ark., explains the workings of what was billed as the world’s largest cotton gin. IFB board members looking on are, from left, J.C. Pool, David Serven, Jim Anderson, and David Meiss. (Photo by Chris Magnuson)

Men and women involved in the IFB Action Teams meet twice a year in Bloomington. They serve on the team that matches their interest and experience.

Applications currently are open for 2013 Action Teams. To apply, contact your local county Farm Bureau, call the IFB member services and public relations division at 309-557-2922, or apply online at {www.ilfb.org}.

Recent Action Teams projects include promotional agriculture advertising in “L” trains and stations in Chicago; the selection of a new youth ambassador to connect to college students; health and safety messages delivered digitally on 15-inch digital photo frames; and educational commodities posters displayed at various venues around the state.

State Fair Fun

Young Leader

Agri-Quiz Bowl Where Great Thinkers Come Together & Compete!

REVISED Tuesday, August 14, 2012 Illinois State Fair • Illinois Building Theatre 8:00 a.m.

8:30 a.m.

9:00 a.m.

Madison #1, Sangamon, Macon, Champaign #1 Macoupin, Vermilion, Cass-Morgan, Shelby #1 Mason, Madison #2, Tazewell, Edgar

9:30 a.m.

10:00 a.m.

Consolation Round Semi-Final Round

10:30 a.m.

11:00 a.m.

Champaign #2, Shelby #2, Adams, LaSalle Announcement of State Winners in Achievement Award and Excellence in Ag Award

11:30 a.m.

12 Noon

Grundy, Hancock #2, Effingham, Hamilton Randolph, Wayne #1, Knox, Edwards #1

12:30 p.m.

1:00 p.m.

Consolation Round Semi-Final Round

1:30 p.m.

2:00 p.m.

2:30 p.m.

Richland, Carroll, Edwards #2, Perry Wayne #2, St. Clair, Jo Daviess, Henry White, Kane, Hancock #1, Kankakee #1

3:00 p.m.

3:30 p.m.

4:00 p.m.

4:30 p.m.

Consolation Round Semi-Final Round Consolation Finals Finals

Watch County Farm Bureaus Take On Each Other YL748H2

Page 17 Monday, August 6, 2012 FarmWeek

from the counties

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OND — Farm Bureau will sponsor the annual county crop survey at 8:30 a.m. Monday, Aug. 13, beginning at the Farm Bureau office. Teams of farmers, county bank personnel, and radio and print media will conduct the tour. Call the Farm Bureau office at 618664-3100 if you would like to participate in the survey.

ROWN — Farm Bureau and Country Financial will sponsor a customer appreciation open house from 4 to 7 p.m. Thursday at the American Legion Hall, Mt. Sterling. Dinner will be served. Call the Farm Bureau office at 217-773-2634 or the Country Financial office at 217-773-3591 for more information.

HAMPAIGN — The Ag Leaders of Yesterday, Today, and Tomorrow Committee will sponsor a bus trip Wednesday to the Chicago Board of Trade. The bus will leave the Farm Bureau parking lot at 9 a.m. Cost is $40, which includes bus and a visit with a trader. Lunch will be on your own. Call the Farm Bureau office at 3525235 for reservations or more information.

• Farm Bureau will host a series of summer toolshed meetings Wednesday. They will be at 8 a.m. at the Jack Murray farm, Champaign; noon at the Village Inn Pizza, Urbana; and 3 p.m. at the Jerry Wilson farm, Villa Grove.

Call the Farm Bureau office at 217-352-5235 for more information.

• The Champaign County Farm Bureau 100th Anniversary continues with a tractor drive at 10 a.m. and a family picnic from 11 a.m. to 2 p.m.

Saturday, Aug. 25, at Curtis Orchard, Champaign. Call the Farm Bureau office for more information.

OOK — Farm Bureau will sponsor a workshop at 7 p.m. Tuesday, Sept.

18, on preparing wills and trusts and transferring nontitled property at the J.C. Restoration Building, 3200 Squibb Ave., Rolling Meadows. Call the Farm Bureau office at 708-354-3276 for more information.

• The annual Farm Bureau Family Celebration Picnic will be from 1 to 4 p.m. Saturday, Sept. 22, at Goebbert’s Farm, 40 W. Higgins Road, South Barrington. Tickets are $15 for adults and $10 for children 3-11, Children under 2 are free. Included in the costs will be a maze; wagon, pony, and camel rides; and haunted house or jumping pillow.

Children will receive one small pie pumpkin and lunch. Tick-

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ets must be purchased by Friday, Sept. 7. Call the Farm Bureau office at 708-364-3276 for tickets.

AYETTE — Farm Bureau will sponsor the annual county crop survey at 8:30 a.m. Thursday, beginning at the Farm Bureau office. Breakfast will be served. Teams of farmers, county bank personnel, and radio and print media will conduct the tour. A steak cookout will follow the survey at 6:30 p.m. Tickets are $5 and are available at the Farm Bureau office or a Farm Bureau director. Call the Farm Bureau office at 2833276 if you would like to participate in the survey.

ORD-IROQUOIS — A Viewpoint breakfast will be at 7:30 a.m. Wednesday, Aug. 15, at Happy Days Diner, Roberts. Dan Schaefer, director of nutrient stewardship for the Illinois Council on Best Management Practices, will present “Keep it for the Crop (KIC) by 2025” program. Call the Farm Bureau office at 800424-0756 for more information.

ASALLE — Farm Bureau will sponsor an “On the Road” seminar at 7 p.m. Monday, Aug. 13, at the Farm Bureau office. Motor vehicle laws will be discussed.

Call the Farm Bureau office at 815-433-0371 for more information.

• The Prime Timers Committee will sponsor a defensive driving course from 8 a.m. to 12:30 p.m. Wednesday, Aug. 22, at the Farm Bureau office.

Cost is $10 for members over the age of 55. Non-member cost is $25. Call the Farm Bureau office for more information.

EE — Farm Bureau has tickets for the Clinton Lumber Kings and Quad Cities River Bandits at a discounted rate. Tickets for the Clinton Lumber Kings are $3 and $6 for the Quad Cities River Bandits. Tickets are for all remaining home games.

Call the Farm Bureau office at 815-857-3531 or email leecfb@comcast.net for more information.

• The Public Relations Committee will sponsor its annual Farm Visit Day from 10 a.m. to 1:30 p.m. Saturday at Woodhaven Association in Sublette. Buses will take participants on the tour. A reservation ticket is required to board the bus. Call the Woodhaven office at 815-840-5209, ext. 216, for tickets. Call the Farm Bureau office at 815857-3531 for more information.

IVINGSTON — Farm Bureau’s 100th

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Centennial Celebration will be from 4 to 7 p.m. Saturday, Aug. 25, at the Livingston County 4-H Park, Pontiac. A pork loin dinner will be served. Former Livingston County Farm Bureau presidents will share highlights of their service, and the first Livingston County Farm Bureau Distinguished Service Award winner will be announced.

Door prizes will be given.

Evergreen FS will sponsor a kiddie tractor pull at 5 p.m.

Call the Farm Bureau office at 815-842-1103 or email livcfb@frontier.com by Friday for reservations or more information.

EORIA — A Stroke Detection Plus health screening will be Thursday, Aug. 16, at the Farm Bureau office. Call 877-732-8258 and provide your Farm Bureau membership card number for a discount on the screenings.

• A Grassroots picnic will be at 6 p.m. Tuesday, Aug. 21, at the Farm Bureau park. A pork loin meal will be served.

Candidates on the November ballot have been invited to attend. Call the Farm Bureau office at 686-7070 by Wednes-

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day, Aug. 15, for reservations or more information.

• Farm Bureau will sponsor a bus trip Wednesday, Aug. 29, and Thursday, Aug. 30, to the Farm Progress Show, in Boone, Iowa. Tours will include Kinze, Monsanto, and the Maytag Dairy Farm. Call the Farm Bureau office for reservations or more information.

• Cash prizes in the annual photo contest will be awarded for the Best of Show and top three places in three categories. Deadline to submit color pictures with names and addresses on the back of each photo is Aug. 31.

T. CLAIR — The Young Farmers Committee will sponsor a shred day from 9 to 11 a.m. Saturday, Aug. 18, at the Farm Bureau office. Call the Farm Bureau office at 618-233-6800 for more information.

TARK — Farm Bureau will sponsor a bus trip Wednesday, Aug. 15, to the Quad Cities. The bus will leave the Farm Bureau office at 8 a.m. Tours will include the John Deere Harvester Works and the Isabel Bloom

S S

Production Studio. Lunch will be at the River House. Cost is $50, which includes bus, tours, and lunch. Call the Farm Bureau office at 286-7481 by Friday for reservations or more information.

ABASH — The annual Young Farmers’ tractor and truck pull will be at 4 p.m. Sunday at the Wabash County Fairgrounds.

Call the Farm Bureau office at 618-262-5865 for more information.

• Visit the Young Farmers’ stand from 11 a.m. to 9 p.m.

Wednesday through Saturday during Ag Days. Pork burgers will be served each day. Pork tenderloins will be served Wednesday and Thursday; and smoked pork chops will be offered on Friday and Saturday.

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“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.

FarmWeek Page 18 Monday, August 6, 2012

profitability

Used oil analysis should be part of maintenance

BY TOM DREW

Used oil analysis is a systematic approach to monitoring equipment performance.

A lubricant sample is taken, sent to a laboratory for analysis, and the results are then returned to the person Tom Drew supplying the sample. The analysis includes physical property tests as well as wear metal analysis.

What can oil analysis do for you?

1. Establish safe and proper drain intervals.

2. Provide a reduction in unforeseen breakdowns.

3. Reduce down time.

4. Provide a reduction in the number of oil changes and labor costs.

5. Provide overall maintenance savings.

6. Provide longer equipment life.

7. Eliminate unnecessary overhauls.

8. Provide better fuel mileage.

9. Provide support for equipment warranty claims.

There are three ways to obtain a representative sample of used oil from an engine: drain plug method, sample gun method, and petcock method. It probably is

most convenient to use the drain plug method. Take the sample when the engine has run at normal operating temperature. Let a small amount of oil drain into the drain pan before catching the sample to be sent to the laboratory.

Wear metal tests are used to interpret the condition of the equipment components.

The presence of tin, lead, and copper all may indicate bearing wear. Iron combined with chromium usually indi-

cates liner and ring wear, possibly along with aluminum, which would indicate piston wear.

Silicon usually can be traced to a faulty air intake system that is allowing raw air into the combustion chamber. Boron and sodium are components of ethylene glycol and usually indicate antifreeze is present in the oil.

Physical properties tests are performed on an FT-IR spectrophotometer. The used oil is compared to fresh, unused oil.

BY DANIEL GRANT FarmWeek

Conference in Normal. “(If realized), we expect near-term pressure on land prices,” he continued. “We view it as a buying opportunity.”

Vieth predicted the recent run-up in land prices will cool off the second half this year.

But he doesn’t believe the market will collapse.

“Short-term, we may have some issues. We expect prices to slow down,” Vieth said.

“But long-term, we do not see a bubble.”

A land values report released by the Rabobank Food and Agribusiness Research and Advisory group also predicted U.S. farmland values will increase at a slower rate by 2013.

But the report, and Vieth, still look for farmland values and returns to remain strong.

“Strong fundamentals including elevated commodity prices, low interest rates, increasing rental rates, and strong relative returns to agriculture will continue to make farmland an attractive investment,” said Sterling Liddell, author of the Rabobank report.

Farmland returns, including rental income and land appreciation, averaged 11.3 percent per year the past two decades, Vieth reported. Farmland during that time nearly doubled the return on stocks and the land market was much less volatile than the S & P (Standard and Poor) 500, he noted.

Therefore, Vieth expects investors to continue to compete with farmers as bidders at land auctions.

He said he believes more farmers will sell land this fall and winter to cover losses inflicted on their operations by the drought. He also noted capital gains taxes are set to increase from 15 percent to more than 23 percent by January.

“We think some people on the fence will decide this is the time to sell,” he added. “I think there will be more (land) sales after harvest.”

The farmland market has favored sellers in recent years.

Farmland values through the first quarter this year were up an average of 20 percent in Illinois and 19 percent in the Midwest compared to a year ago.

But the tide could turn in coming months and, for the first time in awhile, it could be a buyer’s market for farmland.

Drought-related losses and tax code changes could persuade more farmers to put land up for sale before the end of the year, according to Perry Vieth, president of Ceres Partners, a farmland investment firm.

“The land sale supply will increase in the fourth quarter,” Vieth said at the recent Illinois Farm Bureau Commodities

Feeder pig prices reported to USDA* Range Per Head $23.45-$45.00 n/a

Weighted Ave. Price $37.21 n/a

This Week Last Week 77,365 95,967 *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 $90.37 $85.71 $66.87 $63.43

Change 4.66 3.45

USDA five-state area slaughter cattle price Steers Heifers

dilution, or contamination and lubricant breakdown in service.

There are many advantages of including used oil analysis as part of your routine maintenance program. For availability of testing facilities and further details, contact your local FS member cooperative sales specialist.

Tom Drew is GROWMARK’s lubricants marketing manager. His email address is tdrew@growmark.com.

Investor: Farmland sales could increase this fall

M A R K E T FA C T S Weight 10 lbs.

40 lbs.

Soot level is an indicator of combustion efficiency.

Oxidation is a measure of the effective service life of the oil. Nitration measures nitrogen compounds in the oil resulting from blow-by past the compression rings. High levels of zinc depletion indicate the additive is being used up.

Water and fuel dilution also are measured. Viscosity measures a lubricant’s resistance to flow. Changes in viscosity indicate improper servicing,

(Thursday’s price) (Thursday’s price) Prev. week Change This week 118.06 114.00 4.06 117.86 114.00 3.86

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 136.50 134.18 2.32

Lamb prices Slaughter prices - Negotiated, live, wooled and shorn 125-150 lbs. for 109.78-115 $/cwt. (wtd. ave. 112.88)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 07-26-12 15.5 18.6 21.4 07-19-12 15.8 11.8 19.6 Last year 7.3 16.9 35.8 Season total 1282.2 146.5 1409.1 Previous season total 1448.9 184.8 1631.5 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Milk price climbs $1.05 higher The Class III price for milk adjusted to 3.5 percent butterfat for the month of July was $16.68 per hundredweight, $1.05 higher than the previous month.

The hot weather has taken a toll on milk production across the U.S. The resulting tight supplies are starting to cause milk prices to head higher.

In June, dairymen were amazed at the per-cow production they were seeing on their farms. Many had not ever before had a bulk tank average that high.

Today is a different story. The unrelenting heat has caused milk production to drop 30 percent in some cases, and it has been a constant challenge to keep the cows cool and comfortable.

Compounding the problem is the scarcity of feed, and the high prices that are accompanying it. Silage harvest has started in earnest and quality will be a top concern in the months ahead as it is fed.

Page 19 Monday, August 6, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Changing of the guard In grain markets regardless of whether it’s a drought market, there comes a time when the focus begins to shift from supply to demand or vice versa. From our perspective, the crop markets are at that juncture or very close to it.

Friday’s USDA crop report might serve as the benchmark everyone will look back to as the point when the focus shifted. Even though the production estimates on future reports will change, we guess USDA statisticians will get reasonably close to this year’s production potential with the August report.

In the July 16 issue, we outlined the history of USDA’s yield/production estimates for the 1988 crop year. In general, the yield/production forecasts increased from August to the final forecast in January. For a number of reasons, that same pattern could play out this year.

Already we are hearing requests from the livestock industry for the government to “relax” the Renewable Fuel Standards (RFS) mandate for the coming year because of feed supply fears. But expectations for high feed prices and potential for deep operating losses going forward are a part of the equation as well.

This is playing out not only in the United States but around the world. One of the requests to change the RFS mandate came from the South Korean Feed Association, one of the major grain importers for that country. Brazilian producers are facing economic

difficulties with their livestock operations, with a similar situation prevailing in most other countries too.

These only represent symptoms, not necessarily real change. Of the two sides of the fundamental balance, the supply side factors generally are easier to see and quantify.

Demand changes, at least in the early stages, is much more difficult to see. One is left to look at the subtle changes, and they aren’t always clear or consistent. Normally, real demand change doesn’t show until a couple of months after a change has occurred.

But already we are seeing subtle hints this summer’s drought and the higher grain prices are having implications.

Cow and bull slaughter rose sharply in July, the last couple of weeks coming in 12 percent above last year. And that’s on top of last year’s slaughter that was high because of the drought Southern Plains.

Pork producers are thought to be facing losses ranging from $6 to $11 through 2013 based on the current price structure. Indications of increased sow slaughter have just started to show on data, but are expected to be more apparent in the weeks ahead.

The broiler, turkey, and dairy industries are all facing equally dismal situations in terms of profitability.

The ethanol industry has not been left out, with plant profitability suffering most of this calendar year. Still, it has a mandate to fill. And it will be filled as long as blending economics dictate, or, unless the government decides to temporarily relax the RFS. But that’s a political decision — one that no one can quantify, but one of which we all should be wary.

AgriVisor endorses crop insurance by

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Cents per bu.

ü2011 crop: Sell remaining old-crop bushels. ü2012 crop: The inability of prices to hold gains near $8 suggests it may be difficult to reach new highs, and if they do, to sustain them.

Do comprehensive yield checks to access your production potential. Get to 70 percent priced on a conservative assessment of the bushels you’ll have to sell, but don’t exceed your insurance guarantee. ü2013 crop: Leave orders to get sales up to 20 percent if December 2013 futures trade above $6.50. v Fundamentals: Weekly export sales indicate high prices are starting to choke demand. The industry also remains uneasy about the possibility of the U.S. government waiving its ethanol requirements because of the smaller corn supply. Pressure to make a change is coming from a lot of sectors.

But this week’s focus will be on Friday’s USDA crop and supply/demand reports.

Using 1988 as a guide, these reports could be the “low water mark.”

Soybean Strategy

ü2011 crop: Wrap up oldcrop sales. ü2012 crop: Soybean yields will remain a more difficult call than for corn. But if you are comfortable with potential, get sales to 70 percent of a conservative output. ü2013 crop: Another 10 percent sale was added when November 2013 soybean futures hit $12.90. vFundamentals: Supply features may be close to hitting a crescendo, but with soybeans, little will be certain until USDA’s September report. Even so, current prices may be starting to have negative demand repercussions. Last week’s small export sales served as a warning flag that current prices may be diminishing demand. Soybean meal sales were good, but their fundamental structure will be tied more to how domestic live-

stock producers adjust operations in the wake of poor profitability, limited feed supplies, and high feed prices.

Wheat Strategy

ü2012 crop: Wheat has shifted into a choppy, sideways trend after establishing a high back in late July. If you need to make catch-up sales, use rallies above $8.90 on Chicago September futures. ü2013 crop: Make catch up sales with Chicago July futures trading above $8.40. v Fundamentals: Downside risk for wheat prices should be limited by

c ontinued dry weather in the Black Sea region, Australia, and Argentina, as well as persistent strength in corn prices. Current expectations are for production in these areas to come in well below the current USDA forecast, especially in the Black Sea region. Spring wheat conditions in the U.S. are showing signs of improvement, with the most recent crop condition report indicating a 3 point improvement in the good/excellent ratings to 63 percent. Amid corn’s problem, wheat will be forced to shoulder more of the burden of feed needs as well.

FarmWeek Page 20 Monday, August 6, 2012

perspectives

Farmers, others to feel fall out

Don’t take chances; fire danger serious threat It’s not only dry outside, it’s dangerous, too.

A mower striking a rock could cause 4- to 6-foot flames that would spread like wild fire. The situation is right for “extremely volatile and quick fires,” to quote a fire expert.

“Things are burning that normally wouldn’t burn,” said Tom Richter, a wild land fire specialist with the Illinois Fire Service Institute. “There is more dangerous fire behavior now.”

KAY And the fire conditions?

SHIPMAN They’re more like those seen in October and November instead of late July-early August. At least in October and November, most of the soybeans and much of the corn have been harvested and not available as fuel for fires.

With the recent low humidity and strong winds, the threat of dangerous, widespread fires is greater. I worry some farmer will attempt to put out or contain a fire not realizing it’s more dangerous this summer than in times past.

Richter urged farmers not to react to a field fire or a grass fire like they would during a normal summer.

“Don’t place yourself in harm’s way,” he warned farmers. “The fire will burn so fast and spread so quickly. Give yourself enough space (to get away).”

A farmer may think there is enough time to disk a firebreak, but he could become trapped if the fire spreads too quickly.

“If you need to retreat to a roadway, make a sacrifice (of the crop), but do not put yourself in danger,” Richter stressed.

Cigarettes tossed from passing vehicles also are causing firefighters problems.

“We’re urging people to be careful with their smoking material. They flip a cigarette out (the car window) and ignite the grass along the roadway,” said Addison Fire Chief Don Markowski, president of the Illinois Fire Chiefs Association and a DuPage County Farm Bureau member.

Illegal fireworks have started fires in fields and landscaping, Markowski noted.

County Farm Bureau manager trainee Audrey Cox drafted a letter to the editor to raise public awareness about fire danger in the countryside.

The letter to the editor was a good idea that could be replicated in other counties.

What’s a farmer to do?

Some things are obvious: Keep a fire extinguisher in your tractor and combine cab. Call the fire department as soon as a fire breaks out. You might keep a disc hitched in case a firebreak is needed. But most importantly, don’t put yourself in danger.

Field fires and grass fires can spread quickly in this drought environment. Give them plenty of space and stay safe.

Kay Shipman is FarmWeek’s legislative affairs editor.

Her email address is kayship@ilfb.org.

Here we go again — a short grain crop, which means higher prices for wheat, corn, soybeans, and on down the line. The fallout will be felt far and wide. The pain will not be shared equally.

The drought is going to seriously hurt some farmers, even though crop prices are high. They just won’t have much to sell.

Livestock producers will be crying, too.

They thought $5 corn was too expensive.

How about $8 corn?

We can expect some culling of livestock herds in the short run increasing the supply JOHN of meat and thus pushing down the price.

BLOCK But that will be short-lived. Pork, beef, and especially dairy prices will go up.

Now the question is — what kind of shock will the consumer experience? Some numbers from USDA might shed a little light on this question.

A 50 percent increase in the price of corn could increase your grocery bill by 1 percent. That’s all.

Out of a grocery cart of food, only 15 percent of the money you spent goes to the farmer. The rest goes for labor, packaging, transportation, and advertising. All foods are different: For cereal, 7 percent of cost goes to the farmer; but milk, is 46 percent; pork, 34 percent.

Right now, USDA projects food prices to rise this year by about 3 percent — not much more than the average over the years.

Now, the drought could push this up to 4 percent or more next year, depending on the extent of crop loss.

Beyond a food price increase, there will be other fallout.

The volume of our exports will suffer because the high prices will discourage demand. Markets do work.

There will be a new groundswell of voices asking the government to lift the renewable fuels standard. They will be shouting, “We shouldn’t be making corn into fuel.”

A better idea would be to release some of our Conservation Reserve Program (CRP) acres for crop production. We have more than 30 million acres in the CRP, and I would estimate that half of those acres could be safely farmed. A total of 15 million acres could produce a lot of grain.

On the positive side, the critics of modern agriculture and genetic engineering are going to lose their case because we need all the advanced technology to produce enough food.

It’s too soon to say how all of this will shake out. So stay tuned.

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

Pepper power offers long, spicy tale of history

What kitchen exists that doesn’t have at least one shaker of black pepper? Pepper is ubiquitous — and cheap.

A two-pack set of salt and pepper costs about $3 at the grocery store.

Whether whole or ground, black, white, or multi-colored, a single plant, Piper nigrum, is MARI responsible for LOEHRLEIN this tiny yet powerful spice.

Black pepper is the ripe fruit of a vining, twining plant that originated in the Kerala region on the west coast of India, where it has been used both medicinally and as a food for at least 4,000 years.

Like many fruits, pepper

starts out green and turns red as it ripens. When dried down, it shrivels and turns black. The white pepper seed is sometimes extracted from the outer fruit, thus it lacks the piperine oil that gives pepper its distinct flavor and other properties.

However, it is often used in white sauces for its color.

Some say pepper helps the digestion process; however, too much can cause gastrointestinal irritation and it can irritate ulcers.

Pepper is rich in important minerals such as calcium, iron, magnesium, manganese, potassium, and zinc. It also contains vitamins A, B-complexes, C, E, and K. It was the discovery of India’s monsoon patterns around 2,000 years ago that vastly increased trade, including the pepper trade, between

southwest India and Rome.

Ships sailed from Egypt in summer with the wind at their backs, returning in winter when the winds had shifted to the opposite direction. This route was so important that it remained a key component of the trade route between Europe and India for 1,500 years.

Then, when Vasco da Gama discovered the route to India via the Cape of Good Hope, Portugal dominated the pepper trade for several hundred years.

The Romans, Greeks, and Egyptians highly valued black pepper. Ramesses the Great had black peppercorns stuffed in his nostrils as part of the mummification rituals performed shortly after his death more than 3 millenia ago.

Prior to the sea route, peppercorns and other spices from

India were traded via overland routes, which could be dangerous and treacherous. Later, the revival of some of these routes reduced Portugal’s stranglehold on the trade.

Pliny the Elder, living in the first century of the current era, was commander of the navy of the early Roman Empire. He complained about the cost of pepper, writing “there is no year in which India does not drain the Roman Empire of 50 million sesterces” for it. A sesterce was a coin of the realm in those times.

While Pliny did not think too highly of black pepper, it was used by the wealthy in many dishes at the time.

The Apicius, a Roman cookbook compiled about 1,500 years ago, lists hundreds of pepper-containing recipes such as Parthinian chicken, fig-

fed pork, Ostian meatballs, and even the sweet dessert, Dulcia domestica.

Black pepper itself has been accepted as currency through the ages and in various countries. For example, Attila the Hun reportedly demanded payment of 3,000 pounds of pepper in the year 408 as part of a ransom for the city of Rome.

The power of the pepper has been in its economic value, which drove trade, led to development of trade routes, and contributed to some of the greatest political powers in human history. Maybe you thought its greatest power was its ability to make you sneeze?

Mari Loehrlein is a professor of horticulture in the School of Agriculture at Western Illinois University, Macomb. Her e-mail address is MM-Loehrlein@wiu.edu.