IllInoIs RuRal HeRItage Museum in Pinckneyville will offer a sneak peek at its sampling of rural and ag history on Aug. 16. Much more is to come later. ....................10
IllInoIs FaRm BuReau’s Young Leader Achievement Award recognizes extraordinary accomplishments in farming and leadership. ...............................................4
IllInoIs CountIes continue to change zoning ordinances to allow for large-scale wind farms as the wind energy industry evolves. .........................................11
Monday, August 8, 2011
Two sections Volume 39, No. 32
Crop conditions decline for fourth straight week BY DANIEL GRANT FarmWeek
Crop conditions continued to deteriorate last week as heat-stressed plants received little, if any, moisture relief across much of the state. The National Agricultural Statistics Service Illinois field office last week reduced the por-
FarmWeekNow.com You can listen to climatologist Jim Angel’s comments on the weather at FarmWeekNow.com.
Periodicals: Time Valued
tion of crops rated good to excellent by 6 percent for corn and 2 percent for soybeans. It was the fourth consecutive week crop ratings declined in Illinois. Crop conditions as of last week were rated 53 percent good to excellent, 34 percent fair, and 13 percent poor/very poor for corn and 58 percent good to excellent, 33 percent fair, and 9 percent poor/very poor for beans. Just four weeks ago, 67 percent of corn and 64 percent of soybeans in the state were rated good to excellent. “The hot and dry weather is cutting corn yields fast,” said Ken Reinhardt, FarmWeek Cropwatcher from Mercer County. “Some early corn
is denting and will have very light test weight.” The average temperature in the state for July was 80.1 degrees, 4.3 degrees above normal, according to Jim Angel, state climatologist with the Illinois State Water Survey. “It was the sixthwarmest July on record (tied with 1955),” Angel said. The warmest July on record in Illinois occurred in 1936, when the temperature averaged 83.1 degrees. This year, July was particularly steamy due to above-average overnight temperatures.
While overall it was the sixthwarmest July, in some places such as Champaign, the average
BY MARTIN ROSS FarmWeek
will be charged with cutting $1.5 trillion more. The plan seeks a constitutional balanced budget amendment by the end of the year. Key federal entitlement programs — Social Security, Medicare, and Medicaid — were left out of first-round reductions, though defense spending takes an initial hit. Though the fiscal commission reportedly will identify true across-the-board cuts, ag economist Robert Thompson sees farm direct payments as an almost certain target. “The fiscal commission undoubtedly will impact us either in baseline funding with the farm bill or some other ag programs we have on the federal
overnight temperature for the month was the second-hottest on record, Angel reported.
Meanwhile, rainfall totals in July followed a “Goldilocks” pattern with either too much in places such as Northern and Southeastern Illinois and not enough in a large section of the state’s midsection. The average statewide rainfall last month was slightly above average, 4.12 inches, but Galena received a whopping 19.2 inches while Champaign, Springfield, and Peoria received less than 1.5 inches. “(The average rainfall total) sounds pretty good but it doesn’t tell you how wildly different it was from one part of
the state to the next,” Angel said. “Northern Illinois had exceptionally large amounts of rainfall and parts of Southern Illinois were wet as well, but between I70 and I-80 it was very dry.” The forecast for the next 10 days is a little more positive, with the heat wave projected to be contained in the south and a chance of abovenormal precipitation in much of the state, Angel added. USDA on Thursday will update its crop estimates. Last month the Ag Department projected national crop yields of 158.7 bushels per acre for corn and 43.4 bushels for soybeans. Many analysts last week projected USDA will lower its yield estimates due to the lessthan-ideal weather conditions.
level,” Illinois Farm Bureau Governmental Affairs Director Mark Gebhards said. “The commission’s timeline is to come back with this next $1.5 trillion worth of cuts by Thanksgiving. When (commission members) present that to Congress, it will be up for a straight up-or-down vote. When they say, ‘We’re taking X amount
out of baseline funding for the farm bill,’ Congress won’t have the ability to amend it. It’s either ‘We accept it or we don’t.’” Congress “had to pass something,” Thompson told FarmWeek, arguing the global financial impact of U.S. default simply would have been “too terrible.”
Direct payments target under debt limit plan?
In 11th-hour activity last week, Congress and the White House averted sending the U.S. into debt default and set the stage for $2.5 trillion in 10-year budget cuts and anticipated deep ag program reductions. With the U.S. facing default and reduction in its current AAA bond rating (essentially, its global credit rating), President Obama signed the House-drafted package following approval in the Senate. Congress now enters into a two-tiered process of identifying spending targets. The debt limit measure directed $1 trillion in initial cuts; a bipartisan fiscal commission
“Illinois Farm Bureau is pleased that the debt ceiling issue has been resolved, averting a national financial crisis. “In terms of long-term government economic policy, Farm Bureau advocates for fiscal responsibility. We support a constitutional amendment requiring the federal government to operate on a balanced budget. A major priority for Farm Bureau continues to be the adoption of sound economic policies by the federal government. “As Congress and the president move forward with a deficit reduction plan, we urge them to consider that Philip Nelson, agriculture programs have taken deep spending cuts in the recent past and should be credited for those cuts. president As part of the process, the authority of the House and Illinois Farm Senate agriculture committees to write the next farm Bureau bill must be preserved. Further, Farm Bureau will work to minimize the impact of federal budget cuts on the farm safety net.”
FarmWeek on the web: FarmWeekNow.com
See Debt, page 9
talkiNg pork
The Illinois Pork Producers Association and the Illinois Soybean Association teamed up recently to offer fun and educational activities at the “Farm-in-the-Zoo” at Lincoln Park Zoo in Chicago as part of the Illinois Farm Families efforts to converse with consumers about the origin of their food. Here, Brent Scholl talks to a Chicago mom about pork production. (Photo courtesy of Illinois Pork Producers Association)
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, August 8, 2011
IFB In actIon
Quick takes BEEF CHECKOFF CELEBRATES 25 YEARS — The beef checkoff, established in 1986, recently celebrated its 25th anniversary. The nation’s cattle herd during that time declined from 112 million head to about 100 million head, but the checkoff has remained steady at $1 per head, according to the CattleNetwork website. The checkoff is expected to remain critical to producers’ livelihoods in the form of supporting beef prices and building demand as farmers deal with wild swings in cattle and input prices. Fed cattle currently sell for about $107 per hundredweight, compared to $58 per hundredweight in 1986, but a gallon of gas during the same time shot up from 89 cents per gallon to a national average of $3.94 per gallon last week. BUTTERFLY BLAME — Jaime Mijares says he is “ashamed” about the winter absence of once-flourishing migrant monarch butterfly populations in Central Mexico. But Monsanto’s Latin America North corporate affairs lead argues official mismanagement — not a butterfly effect related to Roundup Ready crops — is responsible for the phenomenon. A recent paper in the Insect Conservation and Diversity journal attributes reduced winter monarch populations in central Mexico in part to Midwest milkweed “losses” caused by use of herbicide-resistant GMO crops. The insect migrates annually from Canada to Mexico, and Mijares recalls seeing a “huge” presence in the Mexican state of Michoacan in 1982. He traces the butterfly’s recent disappearance primarily to illegal timber activity within the monarch’s major Mexican habitat. “(Mexico’s) Minister of Environment doesn’t preserve the amount of trees the butterfly needs to land in,” Mijares told FarmWeek. “It’s not biotech. We are not doing our job in conserving the trees we need to conserve in Michoacan.” MONSANTO TO OFFER BIOTECH SWEET CORN — Monsanto Co. will start selling biotech sweet corn in the U.S. later this year. The introduction marks the first biotech product developed for the consumer market by Monsanto. The sweet corn seed was developed to kill insect pests both above and below ground and is tolerant of Monsanto’s Roundup herbicide. Competitor Syngenta AG has sold pest-killing sweet corn seeds for more than 10 years. HEALTHIER HAPPY MEALS — McDonald’s, the world’s largest hamburger chain, will add apple slices to all Happy Meals served beginning in September. An estimated 10 percent of Happy Meals are now sold with a 3.1-ounce side of apple slices. The apple portion will be reduced to slightly more than one ounce in September, but adding the fruit to every Happy Meal will boost sales for U.S. growers. Happy Meals will continue to be sold with a side of french fries, although the serving size will be reduced by about half.
(ISSN0197-6680) Vol. 39 No. 32
August 8, 2011
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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Brad Temple, right, IFB Board District 4 director from Serena, steadies a prize-winning sheep while Temple’s son, Bryan, does some last-minute shearing recently at the LaSalle County Section 7 FFA Fair. Temple’s wife, Kara, and their younger son, Ben, watch the action. Temple, who raises sheep and cattle on his farm, has a passion for the livestock industry in Illinois and has served as a livestock judge at shows around the Midwest for the past quarter-century. (Photo by Ken Kashian)
Judging livestock a talent, hobby for new IFB director BY DANIEL GRANT FarmWeek
Brad Temple, 47, knows a thing or two about sheep breeds and their various traits. The fifth-generation farmer raises purebred sheep and has spent roughly the past quarter-century judging sheep at shows around the Midwest when he’s not busy on his diversified grain and livestock operation in Serena (LaSalle County). But even after 25 years, Temple still finds working around the show ring as rewarding as when he first became active in livestock judging through 4-H, FFA, and at Joliet Junior College. “It’s a fantastic learning experience for kids and adults,” Temple said. “They learn a lot of responsibility, labor and money management, and about competition.” Temple currently is taking some time off from livestock judging, though, to focus on his position as the IFB board District 4 director. He was elected to a two-year term on the IFB board in December and represents members in Bureau, Lee, and LaSalle counties. Recently, however, he still helped his two sons prepare their sheep for competition at a county fair. In fact, the Temples spent a good portion of the Fourth of July shearing sheep. “I’d certainly like to return to (the judges’ table) some day,” Temple said. “I’ve made a lot of friends and acquaintances along the way. It’s really like an extended family.” Temple believes the quality of livestock exhibited at fairs is as good or better than ever. However, numbers are down at some shows due in large part to economic challenges.
“With the financial strains (of the state), it’s been a challenge at a lot of fairs,” he said. “Many have dropped classes or reduced premiums, which makes it tougher for some exhibitors to come.” Livestock exhibitors also are feeling the pinch of higher fuel and feed prices. “Overall, the number of animals at shows may be lower,” he said. “But on the bright side, the quality at livestock shows hasn’t been compromised and it’s maybe even better. If you’re going to go to a show, you’re going to bring the very best.” Temple also puts a great deal of emphasis on livestock on the farm, where he raises purebred sheep, a few commercial cows, and sells seed stock. He grows corn, soybeans, hay, oats, and seed corn as well. Temple and his wife Kara’s two sons are the sixth generation on the family farm. “We’ve been at this location a pretty long time,” Temple said. “The key (to success) for me always has been diversity. “Our farm always has had livestock on it. I’ve always enjoyed that aspect of it,” he continued. “Selling seed stock is nice. It’s one area I have control over my prices.” Temple is the past president of the LaSalle County Farm Bureau, a member of the IFB Livestock and Dairy GrassRoots Issue Team, and completed the IFB ALOT program in 1996. A graduate of Joliet Junior College in 1986 with a degree in agricultural production and management, Temple was a DuPont Young Leader Award winner in 1996 and an IFB Discussion Meet winner that same year. He serves on the administrative board of the Serena United Methodist Church. Temple also enjoys traveling when he has the opportunity.
Page 3 Monday, August 8, 2011 FarmWeek
markets
Port director sees Madison as major export gateway BY MARTIN ROSS FarmWeek
“America’s Central Port” in Madison not only is a more dynamic designation than it’s formal moniker, the Tri-City Regional Port District. Port Executive Director Dennis Wilmsmeyer hopes the name someday will become a global reality. Farm Bureau and other Illinois ag groups, state officials, and USDA Farm Services Agency/Rural Development Illinois directors gathered last week to acknowledge the Madison County port’s growing role in the region’s ag economy. The port features loading and unloading of 2,500 barges annually; rail and truck bulk transfer facilities for ag and other goods; and foreign trade zone operations. It’s also home to Abengoa Bioenergy’s 90-million-gallon ethanol plant and Arizon Companies, a firm working to develop possible new grain storage alternatives (see accompanying story). Wilmsmeyer sees even greater ag opportunities given the recent announcement the port would receive an $8.5 million Transportation Investment Generating Economic Recovery (TIGER) federal stimulus grant. Funds will be used to complete new “South Harbor” facilities and connecting rail
lines crucial to enhancing “multi-modal” truck-rail-barge capabilities and thus Mississippi export prospects. “What we see in our trips to China is that they understand where the West Coast is, they understand where the big cities like Chicago are, but trying to explain where St. Louis is is sometimes difficult,” Wilmsmeyer told FarmWeek. “But we believe the Mississippi River is the conduit for getting goods back and forth between here and China. We want ‘America’s Central Port’ to be THE identifier for the entire St. Louis region for bringing goods and services in and out.” Last year, U.S. Rep. Jerry Costello, a Belleville Democrat, obtained a $6 million TIGER grant for port construction. Improvements should enable shippers to “more quickly and efficiently” move dry- and liquid-bulk products through the port, Wilmsmeyer said. Expanded container shipping capabilities are envisioned. Wilmsmeyer acknowledged Chicago’s current dominance in Midwest containerized shipping and investments by BNSF Rail and others in the Chicago/Pacific Northwest freight corridor. But with Asian market potential on the rise, he sees the Mississippi offering a key link in trans-Pacific trade. He noted the Madison port lies just north of Lock 27, the last lock
on the Upper Mississippi before barges reach “free-flowing river” all the way to the Gulf. Wilmsmeyer believes his port, located downriver from five outdated locks slated for but never provided federal construction funds (and thus susceptible to costly locking delays), offers the “right positioning” for grain and related shipping. Madison County Farm Bureau President Steve Koehler sees port improvements offering “a prime opportunity for Madison County to create some agricultural business opportunities” — “It’s almost a straight shot from here to the Gulf.” Frank Miles, port business development manager, anticipates increased “container-onbarge” activity amid rising energy costs and resultant pressure on the trucking industry. South Harbor improvements should help Abengoa more efficiently bring corn in for processing and move distillers dried grains (DDG) onto the river, Miles suggested. Chris Standlee, Abengoa’s government relations director, sees the new project spurring DDG exports or even barge shipment of ethanol through the Gulf to the southeastern U.S. “We ship our products at this point all over the U.S. by rail,” Standlee told FarmWeek. “This would just be one more avenue, one more option, we’d want to develop.”
Free trade, consumer outreach to top IFB State Fair efforts on Aug. 16. Photos will be presented to the junior champion and junior reserve champion exhibitors Illinois Farm Bureau will focus on global and of the steer, barrow, wether, poultry meat trio, local issues during the Illinois State Fair, schedmeat goat trio, and the meat rabbit trio. uled for Aug. 12-21 in Springfield. IFB will reach out to the littlest fair visitors The importance of trade for the nation’s econ- who stop at the farmers’ market in the Farmomy will be the focus of an Aug. 16 rally on Agri- ers’ Little Helpers exhibit near Gate 2. IFB is culture Day at the fair. Tentatively scheduled for sponsoring the farmers’ market booth in the 11:30 a.m., agricultural and political leaders will area dedicated to teaching children about farmpromote the passage of Free Trade ing and agriculture. FarmWeekNow.com Agreements on the Farm Bureau A bona fide farmers’ market stage in the Commodities Pavilion Check out our video previews again will be operated by the o f t h e 2 0 1 1 S t a t e F a i r a t Illinois Specialty Growers near across from the Grandstand. FarmWeekNow.com. The Farm Bureau stage also the Lincoln Stage. Frozen cider will be the site for interviews with drinks along with fresh peachelected officials, fair winners, and es, melons, and other produce other notable guests from 11 a.m. to 2 p.m. RFD will be sold. Radio personalities Alan Jarand and Julie Root Teams of Farm Bureau Young Leaders will test will interview guests from Aug. 12-16 with Rita their knowledge Aug. 16 during the Agri-Quiz Frazer, WSMI farm director and RFD Radio con- Bowl. The event will start at 8 a.m. in the theater of tributor, handling the interviews Aug. 17-18. the Illinois Building. New this year, the state winProviding musical entertainment on the ners of the Young Leader Achievement Award and Farm Bureau stage will be a duet, Kris and the Excellence in Ag Award will be named at 11 John Parkhurst of the Shanties, a Central Illia.m., also on the Illinois Building stage. nois Irish band that also plays a variety of State Fair “Illinoisans of the Day” will include music. They will entertain from 11 a.m. to 2 former IFB President Harold Steele and several p.m. in between interviews from Aug. 12-18. other Farm Bureau leaders who will receive speAgain this year, IFB President Philip Nelson cial recognition on their day. will present framed photographs to the top junior For a schedule of fair events or information, livestock exhibitors during the Sale of Champions go online to {www.illinoisstatefair.info}.
BY KAY SHIPMAN FarmWeek
Arizon marketing representative Russell Traeger, left, and Vice President Thomas Soehngen prepare for a celebration of Madison’s America’s Central Port last week at Arizon Companies air structure demonstration site. Traeger estimates 90 percent of the air-filled fabric structure seen here could be filled with grain for long-term storage. (Photo by Martin Ross)
Air structures option to address storage needs?
You may have seen them: vast, balloon-like structures that enable urban health enthusiasts to perfect their golf swing or tennis technique over the winter months. They’ve popped up on university campuses and surfaced at SeaWorld. Now, an Illinois company is looking to “air structures” as a reduced-cost, environmentally controlled option to address seasonal grain storage needs. Arizon Companies, located within the America’s Central Port complex near St. Louis, is exploring the feasibility of “horizontal” grain storage using the air-filled reinforced polyester fiber structures. Company subsidiaries manufacture air circulation and heating systems easily adapted for corn or soybean drying and storage, according to Arizon marketing representative Russell Traeger. “The tensile strength of this building is as strong as steel,” he told FarmWeek during a tour of Arizon’s Madison demonstration model. “It has all of the same structural capabilities of a conventional building; the advantage is we can reach great, clear spans with these buildings. We can put this structure over an existing outside storage facility. “We can use negative (air) pressure to take grain out or take the moisture out of the building, or use positive pressure to move air through the building. We can build really sophisticated control systems. We could zone areas within grain storage — if this area is too wet, we can remove moisture just in that area.” Unlike tarps or other temporary outdoor storage options, air structures allow operators to remove specific amounts of grain “when they need it,” Traeger said on tarped structures, “once you take that tarp off, you’re going to have to move that grain,” he noted. Structures also are portable: An Arizon structure used to contain emissions from an active landfill in China has been moved three times since its installation, Traeger said. He pegs cost of storing grain in an air structure at $1 or less per bushel. Arizon’s 80,000-square-foot Madison model could hold 1.2 million bushels, he estimated. Arizon has consulted with Monsanto on storage logistics and potential users. Arizon Vice President Thomas Soehngen anticipates regional co-ops being major users, though he also sees the possibility of biofuels plants adapting structures for on-site materials storage. By more tightly controlling drying, heating, and cooling of grain supplies, Soehngen argues air structure use could extend grain storage life and thus expand marketing options. “You’re not selling that grain off at the market low point — you can extend that storage out until market prices get higher and drop it on the market then,” he said. — Martin Ross
FarmWeek Page 4 Monday, August 1, 2011
young leaders
The 2011 IFB Young Leader 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. 16 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 producer. The first place winner receives 150 hours use of any twowheel-drive Case IH tractor, $1,000 cash from IFB, a oneyear membership to the Illinois Corn Growers Association (ICGA), and an expense-paid trip to the GROWMARK annual meeting in Chicago. The first runner-up will receive $600 and a one-year ICGA membership. The two honorable mention finalists will receive $250 and a one-year ICGA membership. Four producers are finalists in this year’s competition. Here they share their thoughts about maintaining farm traditions while leading the industry into the future. Interviews for this feature were conducted by Daniel Grant.
Steve and Dawn Huls St. Joseph, Vermilion County
Steve and Dawn Huls grow corn and soybeans and operate a custom hay business. Dawn also is a fifth grade school teacher. Steve started the custom hay business to earn more income when he first got into production agriculture. The Huls share equipment with Steve’s parents, Dave and Cheryl. The past year was a busy one for the Huls on the farm and at home as the couple welcomed their second child, Madison (6 months) to the family. Their other daughter, Morgan, is 26 months old. On the farm, they grew and made improvements to the business. “We added acres and expanded our custom hay business,” Steve said. “I seem to pick up business (for the hay operation) ever year.” The Huls also spread all their own fertilizer, spray their own crops, and are finishing construction of an on-farm storage facility capable of holding 220,000 bushels of grain. “The grain facility is almost done,” Steve said. “It should be fully operational by the fall (in time for harvest).” The Huls have been involved in Young Leaders for about seven years. They are state finalists for the Achievement Award for the second year in a row. “It’s been an honor both years and a good experience,” Dawn said.
Matt and Jenna Kilgus Fairbury, Livingston County
Matt and Jenna Kilgus produce corn, soybeans, wheat, and hay on a multi-generational farm. Matt and his uncle, Paul Kilgus, also have a
herd of 100 Jersey dairy cows. The Kilgus family in recent years opened its own creamery and bottling plant and bottle and market all the milk produced on the farm. The milk is distributed to stores throughout Central Illinois and the Chicago area. Sales in the last year have increased from about 3,000 gallons per week to about 3,500 gallons per week. “We’ve got a nice market built up and are to the point we have a waiting list,” Matt said. “It’s nice on the marketing end of it. We sell everything the herd produces.” Matt and Jenna, who got involved in Young Leaders about eight years ago and helped rejuvenate the program in their county, were the first runner-up for the 2010 Achievement Award. “It’s definitely an honor to get in the finals for a second year in a row,” Matt said. The couple has two young children, Kamber (4) and Collin (1).
Kirk and Stephanie Liefer Red Bud, Randolph County
Kirk and Stephanie Liefer grow corn, soybeans, wheat and grain sorghum on a family operation in Monroe and Randolph counties. Kirk, who farms with his parents, Kevin and Kathy, is a third-generation producer. His brothers, Kent and Kristopher, also help on the family farm. “I helped my dad and (late) grandpa since I was a little kid,” Kirk said. “I knew by grade school I wanted to be a farmer.” The Liefers, who have a full-time employee, plan to expand the operation to make room for Kirk’s brothers full-time and in case any of their five children, Sophia (9), Simone (6), Karson (4), and one-year-old twins Karleigh and Kade, are
interested in farming in the future. Kirk believes volatility of crop and input prices is one of the top challenges in farming today. “If you don’t have a good marketing plan and know your costs and breakeven points, profitability can slip away fast,” he said. Kirk said his family is honored to be a finalist for the Achievement Award. “It’s great that IFB takes the time to recognize Young Leaders, not only for what we do on our farms but also for what we do in our counties and communities,” Kirk added.
Andy and Katie Pratt Dixon, Lee County
Andy and Katie Pratt are fourth-generation farmers who work in a partnership with Andy’s father, Mike, and brother, Peter. They grow corn, soybeans, and seed corn. The mission on their farm is to responsibly use their resources (natural, financial, and human) efficiently and effectively to sustain the livelihoods of three families and secure the farm for future generations. “We recently started constructing a new grain handling facility,” Andy said. “It’s designed to keep expanding over time, which is our hope for the farm.” Andy broke into the business at a young age when he rented some farmground while still in high school in the 1990s. He went to college and graduated from the University of Illinois in 2000, which is when he returned to the operation. He also got involved in Young Leaders around 2000. “We’re pretty honored (to be an Achievement Award finalist),” Andy said. “It’s a pretty elite class of Young Leaders in the state.” The Pratts have two children, Ethan (6) and Natalie (4).
Two finalists selected for Excellence Award Alan Chesnut, Ridge Farm (Vermilion County), and Tim McDermott, Waterloo (Monroe County), are the finalists for the 2011 Young Leader (YL) Excellence in Ag Award. The winner of this year’s award will be announced Aug. 16 at the YL 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. Alan Chesnut Chesnut is a sixth-generation farmer who grows corn and soybeans. He also owns a die-cast manufacturing company that provides detailed replicas to ag manufacturers for the promotion of their products. “With new technologies, such as auto steer and
precision farming, I am able to work both businesses while on the farm and in the tractor,” Chesnut said. McDermott, who was the 2010 Ag Excellence Award runner-up, is a high school ag teacher and FFA adviser. He also helps oversee the operation of his late father’s family farm. His role on the farm includes seasonal work during planting and harvest. “My family is deeply rooted in production agriculture,” McDermott said. “As a teacher I work with students to help them recognize, Tim McDermott explore, and experience the importance and opportunities of the agricultural industry.” The winner of the Ag Excellence Award will receive $1,000, a digital camera, and an expense-paid trip to the GROWMARK annual meeting in Chicago. The runnerup will receive $600 and a $250 FAST STOP gift card.
Page 5 Monday, August 8, 2011 FarmWeek
ENErGy
Abengoa rep: Work remains in building biofuels market BY MARTIN ROSS FarmWeek
The fate of the federal ethanol tax credit may be uncertain, but a spokesman with a major biofuels company argues the government still has an important role to play in fostering biofuels development and demand. The compromise debt limit agreement signed into law last week did not include Senate ethanol tax reform measures approved in July. Senators seek to eliminate a 45-cent-per-gallon corn ethanol fuel blenders tax credit while extending credits for small ethanol producers and next-generation cellulosic biofuels and diverting a share of tax savings for biofuels infrastructure development. The House, which ostensibly must initiate tax measures, has not acted on the proposal.
The Senate plan would remove the standard ethanol credit months ahead of its scheduled Dec. 31 expiration. But it would provide a mechanism for assuring some industry stability moving forward, especially amid uncertain prospects for continuation of renewable fuel incentives. The debt limit deal directs a bipartisan commission to craft a “future budget framework,” noted Renewable Fuels Association President Bob Dinneen. He thus sees opportunity for “more comprehensive dialogue” about energy tax policy, “including how to assure the continued evolution of the ethanol industry to new feedstocks and technologies, how to assure needed investments in vehicles and infrastructure to accommodate higher ethanol blends, and how to end the billions in subsidies and tax preferences still enjoyed by very mature and profitable
Biomass gasification demos at Agronomy Day, Progress Show BY KAY SHIPMAN FarmWeek
A device resembling “a red rocket” will demonstrate a use for biomass Aug. 18 at the University of Illinois Agronomy Day and again Aug. 30 through Sept. 1 at the Farm Progress Show, Decatur. Ted Funk, U of I Extension specialist in agricultural and biological engineering, will oversee the “rocket,” a biomass gasifier, and demonstrate gasification of miscanthus and tropical maize. The gasifier is similar to a Weber grill with the vents nearly closed, Funk quipped. An Illinois market for biomass gasification exists in the near future, according to Funk. This year Eastern Illinois University replaced its coal-fired steam plant with two gasifiers designed to burn wood chips that the university is buying from an out-of-state source. “I’d like to think they could get nearby biomass to burn in their gasifiers,” Funk said. He added other gasifier projects exist in Illinois. Another near-term market may be biomass pellets as furnace fuel. Funk projected such a market exists for biomass pellets that may be made from many types of biomass. Given the price of liquid propane gas, biomass pellets may make an economical alternative as a heat source, he said. He estimated biomass pellets could be made at a cost of $200 per ton. A third biomass market could be as a replacement fuel for some of the coal burned in industrial boilers, especially if emission standards become more stringent, Funk said. Biomass markets are being studied by the Illinois Biomass Working Group (IBWG) coalition. For information about the group and its project, go online to {www.illinoisbiomass.org}.
Progress Show attendees can help fight hunger
The Farm Progress Show, billed as the nation’s largest outdoor farm event, will be held in Decatur Aug. 30 through Sept. 1. The event will feature more than 500 exhibitors who will display new farm equipment, tractors, combines, farm implements, seed and crop protection products, and many additional farm supplies and services. An exhibit field will be open from 8 a.m. to 5 p.m. on Aug. 30 and 31 and from 8 a.m. to 4 p.m. on Sept. 1. Attendees this year not only may watch live harvest demonstrations but they also may donate food products to help fight hunger. Monsanto, Farm Progress, and the United Way of Decatur and Mid-Illinois will sponsor the food drive throughout the show to benefit local food pantries. The first 500 visitors who donate food at the show each day will receive a $5 food voucher. FFA students who donate food will receive free admission to the show. Advance show tickets, including some discounted tickets, are available now through Sept. 1 by going to the website {www.FarmProgressShow.com}. A full schedule of events also is available at that website.
petroleum fuels.” The blenders credit “certainly has done its job” in fueling industry demand and production capacity, according to Chris Standlee, government relations director with Abengoa Bioenergy. The global biofuels company launched a 90-million-gallon-per-year Madison corn ethanol plant in 2010. “The ethanol industry now provides 10 percent of the U.S. transportation fuel supply, so (the blenders credit) has done what it was intended to do,” Standlee told FarmWeek. “At this point, the blenders credit is not as critical as it once was to the development of the industry. There are other aspects of the industry that we believe need to be developed. “We need to work on infrastructure, making sure the consumer truly has a choice in what kind of fuel he wants to use. We also want to work on incenting the production of cellulosic-based ethanol. We have a big interest in that.” Abengoa plans to begin construction this year on a southwest Kansas cellulosic plant. Since 2007, the company’s Nebraska pilot plant has produced ethanol from corn
stover, wheat straw, prairie grass, and other sources — many of which are available in Illinois, Standlee noted. The Kansas operation recently was awarded federal support through USDA’s Biomass Crop Assistance Program, which like the blenders credit faces a budget threat. Abengoa
hopes its initial commercial plant will lead to co-locating cellulosic facilities alongside existing corn ethanol plants. Kansas construction nonetheless is expected to take two years. Near-term ethanol demand could impact Abengoa’s long-term U.S. development strategy.
TALKING ISSUES
Illinois Farm Bureau President Philip Nelson discusses issues last week at Jacksonville during the first of his farm talk meetings for the year. Topics discussed included the farm bill, free trade agreements, transportation and environmental regulatory issues, the state budget, and the Illinois Farm Families Farmers Opening Our Doors movement. Farm talk meetings with members also were held in Champaign, Dixon, and Joliet. The last of the talks will be Sept. 1 on the DuQuoin State Fairgrounds. (Photo by Chris Magnuson)
FarmWeek Page 6 Monday, August 8, 2011
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: No rain for the week, but we are still OK because of the rain we had two weeks ago. The corn and beans are maturing very fast with a maximum number of growing degree days every day and plenty of moisture. There was lots of spraying of fungicides on corn last week, and fungicides and insecticides on soybeans. The target insects in soybeans right now are Japanese beetles. In some fields the spider mites had a good start during the dry weather and also need to be treated. Lots of growers are wrapping up their third cutting of hay and getting ready for some time off. Have a safe week. Pete Tekampe, Grayslake, Lake County: A very hot week in Lake County. We got 0.6 of an inch of rain on Monday (Aug. 1) and it has been hot since. Most of the corn looks good, but some later-planted corn was stunted by the dry weather and is barely 6 feet tall. It has good color now, but the jury is still out on what the yield will be. Beans are showing signs of too much water with all the yellow spots in the wet areas. Winter wheat is all cut with yields in the 40- to 60-bushel range. Not much straw has been baled. Spring grains are going to be cut soon and look fair. They are calling for cooler weather and more rain. Leroy Getz, Savanna, Carroll County: No rain for the week. July total was a whopping 11.2 inches. Repair work from the July 27 storm continues with many roads and bridges still closed. Corn and soybean fields that were flooded will not produce a crop this year. We combined our oats that had been flattened. There was field loss, but we got 65 bushel per acre with 60 bales of straw. Third-crop hay is heavier than the second-cutting. Corn ears are filled to the tip and are now in the dough stage. Ryan Frieders, Waterman, DeKalb County: The turbulent weather patterns have continued in our area. It finally did cool off a little bit Wednesday after another severe storm Tuesday night. A total of 0.3 of an inch to 1 inch of rain fell in the area, accompanied by strong gusts. All of the corn that was scheduled to be sprayed with fungicide has been done. We also sprayed some insecticide to control rootworm beetles clipping silks. The soybeans also are being monitored for Japanese beetle defoliation. There is never a dull moment. Larry Hummel, Dixon, Lee County: High winds that caused a lot of the corn to blow over right ahead of pollination will have a larger impact on final yield than I had expected. It is hard to get a good yield estimate because of the variability of ear size from plant to plant. Poor pollination and damage to the stalk have ears with kernel counts ranging from 550 down to 200. The most severely damaged fields are even worse. For now, I am thinking maybe at least 20 bushel below our 10-year average. Soybeans shed a bright light on the horizon. Pod set seems to be good and we have good moisture in the soil. Ron Haase, Gilman, Iroquois County: As I was making out my report on July 29, we received 1.3 to 2 inches of rain. That was the only precipitation for the week. That left our farms with a range of 2.7 to 3.4 inches for the month of July. We could use more rain at this point, as some cornfields were beginning to roll their leaves again Thursday. The range in corn development is from the R-2 or blister stage up to the R-4 or dough stage. We finished applying fungicides on corn on Aug. 1. We sprayed slightly more than 50 percent of our corn acres. Crop-dusters have been flying over soybean fields the past few days. The hot and dry weather in July has reduced the yield potential of corn in our area, but it is hard to measure how much at this point. Soybean development in the area ranges from the R-2 growth stage up to the R-5 or beginning seed growth stage. Local closing bids for Aug. 4: nearby corn, $7.18; new-crop corn, $6.81; nearby soybeans, $13.39; newcrop soybeans, $13.13.
Ken Reinhardt, Seaton, Mercer County: Another dry week. I got back from South Dakota Thursday night. It was nice and green there, but they were worried about the effects of the heat on the corn as well. Here, the hot and dry weather is cutting corn yields fast now. Some early corn is denting and will have very light test weight. Goss’s Wilt is showing up in some continuous corn. That is a big concern for future years. Spider mites are getting started in soybeans.
Wilfred Dittmer, Quincy, Adams County: Hello again from the western part of the state where it is cloudy this Friday morning, but no rainfall yet. Total rainfall since last report stands at zero and crops could sure use a drink. If this heat and drought continues, harvest will be coming sooner than later in many areas and the bushels will be shrinking. I guess the weather always has had its cycles, hot and cold, then wet and dry, and it will almost certainly continue. Have a good week wherever you are.
Ron Moore, Roseville, Warren County: We did not receive any rain last week. The temperatures did moderate a few degrees and it was more comfortable to work outside. The corn is all pollinated now and filling the kernels. Some of the lighter soils are starting to turn the bottom leaves yellow. That is very concerning because that is about a month earlier than normal. The soybeans are starting to fill the pods and some fungicide spraying is just starting. There are reports of Japanese beetles feeding, but not a lot of spraying going on yet. The pastures are in the normal summer pattern of slow growth. The heat has caused the cattle to stay close to the creeks.
Tom Ritter, Blue Mound, Macon County: My rain gauge hasn’t worked for over a month and thermometer has been stuck in the 90s. Finally, we are getting a little temperature relief, but last week took a major toll on the corn crop. Before I thought we were in very good shape, but now it might be a stretch to call our crop good. A lot of corn has fired up to the ear, especially stressed areas within the fields. Shucks are turning brown and we probably will see corn harvested the last week of August. There are some good fields still with excellent green color and decent ears, but the majority of the corn has had trouble with pollination or is going to have a small ear due to the stress of too much wetness early in June. Soybeans have fared a little better and are a little more resilient and still have a chance if we could ever get moisture so they can recover.
Jacob Streitmatter, Princeville, Peoria County: The heat finally broke and we are getting a little bit cooler temperatures. We didn’t get any rain last week, however. The crops are still alive, but we lost the top end on the corn. The rest of the yield is falling and the plants are firing hard. Tim Green, Wyoming, Stark County: A little more pleasant last week. We are still a little short on rainfall, but at least temperatures have come down. There still is some Japanese beetle spraying going on in bean fields. Corn spraying is pretty well wrapped up. I walked out in my cornfield Thursday afternoon and picked two ears of early corn and was quite surprised. It was 100 percent dented on the first of August. Heat is pushing the corn pretty fast — probably not a good thing. Brian Schaumburg, Chenoa, McLean County: Even Pollyanna might be disappointed in the corn yield prospects after high heat has apparently taken the top 20 percent off of corn yields due to poor ear length and tip back. Hopefully, the 1.5 to 3 inches of rain that fell the end of July will help fill kernels and put on weight. Soybeans that were planted before May 15 look to have very good potential, as they are at R-3 and fungicides are being applied. Corn, $7.19, $6.81, fall; soybeans, $13.47, $13.15, fall; wheat, $6.37. Steve Ayers, Champaign, Champaign County: “Cobwebs in My Rain Gauge” is back on the top 10 list with a dry week, but we do have slight chances of rain through Tuesday. Then there isn’t any rain in the forecast for a week or more. At least the temperatures have cooled and will range from 60 to 80 degrees. USDA has our eastern crop reporting district the driest in the state with 34 percent very short and 40 percent short of topsoil moisture. Pollination is variable with tip back and voids in ear, while other ears are well filled out. Beans are getting taller, blooming, and podding. See you at the Georgetown Fair Aug. 6-13. Randy Anderson, Galatia, Saline County: What great weather we are having! You wake up in the morning, go outside, and it feels like a blow torch when it hits you in the face. The crop has kicked into overdrive, but it’s not going forward, it’s in reverse. No significant rain to speak of in last three weeks. I would like to have some of the 15 inches that I received a few months ago. I think some corn is probably losing up to a half bushel of yield every day. I see a lot of ear tipping and some stalks with no ears. Bean fields look snow white on the hills in the heat of the day, and nice and green in the valleys. The only thing that is growing is the Roundup Ready pig weed, water hemp, and crossbreed weeds.
Todd Easton, Charleston, Coles County: More heat and more dryness brought forth another hard week for the crops. We did see 0.2 to 0.4 of an inch of rain last Friday (July 29), but this size of rainfall seems to do little to help out the situation. Corn plants are beginning to fire up in several fields — some worse than others. Without significant rainfall soon, some will die off before any kernel fill can occur, hurting yields even more. The beans also are waiting for some water and hopefully will get some before they just give up on making decent pod counts. We are definitely in the 11th hour with this crop. Hopefully, the small chances forecasters were giving us for the weekend developed. Jimmy Ayers, Rochester, Sangamon County: We didn’t have any rain for the week. It hasn’t been nearly as hot. Some of the corn is starting to yellow up and showing stress in different areas. The Illinois State Fair starts Thursday. If you get a chance, you may want to drop by. Quite a bit of mowing going on. The roadsides are looking quite groomed. Some guys are doing hay, but it is pretty light this round. Double-crop beans look pretty decent. I am hearing anywhere from 100 to 200 bushels per acre on corn yield estimates. It appears that nobody really knows for sure at this time. Doug Uphoff, Shelbyville, Shelby County: A lot of Goss’s Wilt showing up in our corn, plus we have had only 0.45 of an inch of rain since July 1. We have corn on timber soil that wouldn’t even feed a deer. Cob but no corn and an almost dead plant. Folks, it’s going to be slim pickin’s around here. The area south of Shelbyville toward Neoga and Cowden has received 1 to 6 inches, but it is scattered. Charlie Barker reported 3 inches; Russel Slifer reported 2.8 inches in one rain, but it was a small area. Sloans in Shelbyville had an inch, but three miles east and a mile north nothing was received. Beans are short and pod counts are low. I see 30 bushel or less beans if we don’t get a rain. USDA doesn’t have anything close to figured out production wise from what I have been seeing. Of course, I’ve been wrong before. David Schaal, St. Peter, Fayette County: The heat finally broke here. Showers moved through the area the evening of July 29 and dropped a 0.5 of an inch to 1.5 inches of rain. Farmers, along with elevator managers and seed people, are walking in cornfields and making assessments on pollination and yield. Everybody believes there are going to be big yield differences field to field. Beans continue to look good. Have a good week.
Page 7 Monday, August 8, 2011 FarmWeek
CROPWATCHERS Dan Meinhart, Montrose, Jasper County: Rain moved through the area on Friday night (July 29). Various amounts from little or nothing to 8 inches fell in isolated areas. Most areas received 2 to 3 inches. It was a very hot, humid week. Fungicide application on corn and beans using airplanes, helicopters, and ground rigs has been taking place. Road ditches and waterways are being mowed where ground conditions permit. There is a slight chance of rain almost every day this week. Temperatures are expected to be in the 80s. Dave Hankammer, Millstadt, St. Clair County: Isolated cloud bursts moved through the region on July 30 and the 31 dropping between 1 to 2 inches rain in the Metro-east area. Some farmers benefited from these isolated showers while others remained dry. The showers briefly lowered the temperature a few degrees. Daytime temperatures reached 100 degrees early in the week, however, the remainder of the week was a bearable 95 degrees. The crops showed signs of relief from the heat as well. Some heat damage is apparent in areas of the fields where poor root development had occurred due to excess water. Soybeans added several inches to their height and the canopy is filling in. The double-cropped soybeans and milo are reaching above the wheat stubble. Although the appearance of the crops is good, we still could use a good soaking rain. Have a safe week. Kevin Raber, Browns, Wabash County: It showered a little Friday morning, but we maybe will get a good shower soon. The beans on my light soils are really showing the effects of the high temperatures and reduced rainfall. The corn looks good, but the light soils are also showing stress.
Rick Corners, Centralia, Jefferson County: It’s really hard to believe that a month ago today (Friday) we were under a flash flood warning. Things are going to heck in a hand basket fast. A few more days like we have had with low humidity, high temperatures, and no rain and we can haul our whole crop this fall with an 8 N Ford tractor and a flarebed wagon. Dean Shields, Murphysboro, Jackson County: The weather last week was very, very hot. We got 0.6 of an inch of rain on Saturday (July 30) that helped cool things down for a few hours. Jackson County’s low ground next to the Mississippi is still flooded. We had to close the locks on Thursday, flooding out 3 to 4 feet of water, but we still have half of it left. The curious thing is how much the heat is hurting corn pollination. The bean planting is over now for us. We had one neighbor who planted on July 29. I am going to keep my eye on that and see how it turns out for him as he tries to get something from those flooded acres. The rest of Jackson County and surrounding areas (Desoto and Murphysboro) have had pretty good rains and the crop looks pretty on that side of the county. Our area is a little bit dry. We have been doing some spraying of beans and having some fungicide sprayed on with helicopters and planes. Roads are being mowed and vacations being taken. Peach and apple crops look to be pretty good this year. We also have a lot of wineries in Southern Illinois, 26 at the last count, I believe, and all those are doing pretty well with the grape crop this year. Take care.
Ted Kuebrich, Jerseyville, Jersey County: With all the hot temperatures we are having, the corn crop in some parts of the county is starting to suffer. Corn that was planted the first part of April is starting to dent. Two weeks ago, I said that the corn in some fields was starting to fire. Now, the situation in those same fields is getting worse. I took a ride to check out more of the county and found corn planted in sandy and lighter soils is starting to dry up. In addition, corn that had been standing in water also is firing about half way up the plant. Early beans are putting on pods. Prices at Jersey County Grain, Hardin: cash corn, $7.20; fall corn, $6.73; January 2012 corn, $6.96; cash beans, $13.35; fall beans, $13; January 2012 beans, $13.39; June/July wheat, $6.58. Ken Taake, Ullin, Pulaski County: Hot and dry pretty much sums up the weather here in deep Southern Illinois. We have had no measurable rain for almost four weeks now. Crops are really looking stressed. The corn on the light areas has that whitish look — lost its color. It looks poor. The soybeans seem to be holding their color better. I really don’t know what they are doing, though. Looks like they have stopped growing. We have some beans in the area that were planted in the middle of July. I am sure this is really stressing those. Aside of worrying about the weather and what the crops are doing, it is down to the usual summer activities — mowing road banks, spraying a few weed escapes, and some fungicide being put on corn and soybeans, as people are trying to save what bushels they can.
Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.
Invasive honeysuckle neither sweet nor wanted BY KAY SHIPMAN FarmWeek
Invasive honeysuckle is not a desired plant despite its fragrant spring flowers and scarlet fall berries. Illinois is home to species of vine honeysuckle and shrubby honeysuckle that crowd out native plant species and form dense undergrowth, according to Ben Dolbeare, invasive species project manager with the Illinois Department of Natural Resources (IDNR). Japanese honeysuckle, a vine plant, is a problem in Southern Illinois, while four species of shrub honeysuckles, collectively known as bush honeysuckle, are problems throughout the state, Dolbeare said. Bush honeysuckle can reach heights ranging from six to 18 feet, depending on the species. They are easy to distinguish from native honeysuckle because the invasive honeysuckle sprouts leaves two weeks before native shrubs and retains its leaves for two weeks longer than native plants in the fall. All the bush honeysuckles produce fragrant flowers in May and June. The flower colors vary from white to pink to purple, depending on the species. All bush honeysuckle produce berries in the fall.
Greg Spyreas, a plant ecologist with the Illinois Natural History Survey, has researched many Illinois forests. His study showed that when Japanese honeysuckle gets established in a woods, “bad things happen to (the woods’) conservation value, such as they become weedy with low value for wildlife and for native plants,” Spyreas said. Spyreas said the bush honeysuckles are a big problem in Northeastern Illinois, and Japanese honeysuckle populations have exploded in Southeastern Illinois. “If not controlled, they (bush honeysuckle) become massive in size and replace the native vegetation,” Dolbeare added. “The bush honeysuckles do this by shading (natives) out and depleting the soil of moisture and nutrients.” Dolbeare said the best method to control invasive honeysuckle is to detect it early and eradicate it. “Recognize small populations and eradicate them before the problem becomes impossible or very expensive to solve,” he said. Young plants may be pulled if the soil is moist. However, cut honeysuckles will resprout if the stump is not treated with a herbicide, Dolbeare said.
For more information about invasive honeysuckle or the control methods, contact
Above: Bush honeysuckle, an invasive plant species, produces berries in the fall. Right: Japanese honeysuckle is an invasive vine that is a problem in the southern half of the state. (Photos by Daniel Buseymeyer, Illinois Natural History Survey)
Dolbeare at IDNR, 1 Natural Resources Way, Springfield, Ill., 62702-1271. His phone
number is 217-785-8688 and e-mail address is ben.dolbeare@illinois.gov.
FarmWeek Page 8 Monday, August 8, 2011
FROM THE COUNTIES
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RAWFORD – Farm Bureau will sponsor an “On the Road” seminar at 7 p.m. Wednesday, Aug. 17, at the Oblong Community Center. Kevin Rund, Illinois Farm Bureau senior director of local government, will provide an update on trucking and transportation of grain. Call the Farm Bureau office at 618544-3792 for reservations or more information. • The annual member appreciation picnic will be from 5 to 7 p.m. Thursday, Aug. 25, at the Robinson City Park. Call the Farm Bureau office at 618-544-3792 for reservations or more information. • Farm Bureau will sponsor a bus trip Wednesday, Aug. 31, to the Farm Progress Show, Decatur. Cost is $30, which includes transportation and ticket to the show. Call the Farm Bureau office at 618-544-3792 by Friday, Aug. 26, for reservations or more information. ANCOCK — The Young Leaders Committee will host a dinner honoring Carla Mudd at 6:30 p.m. Wednesday at the Fiji Japanese Steakhouse, Quincy. Carla will become the new Illinois Farm Bureau manager of consumer
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communications on Aug. 16. • The Young Leader Committee will sponsor a team to participate in the Agri-Quiz Bowl Tuesday, Aug. 16, at the Illinois State Fair, Springfield. • The Farm Bureau office will host the Young Leaders district discussion meet at 10 a.m. Wednesday, Aug. 24. ENRY — Farm Bureau will sponsor two “On the Road” seminars Monday, Aug. 22. The first will be from 10 a.m. to noon at the Reynolds American Legion, Reynolds, and the second from 3 to 5 p.m. at the Prophet Hills Country Club, Prophetstown. Topics will include motor carrier safety regulations, unified carrier registration, and U.S. Department of Transportation number registrations. Call the Farm Bureau office at 309937-2411 for reservations or more information. EE — The Public Relations Committee will sponsor its 17th annual Farm Visit Day from 10 a.m. to 1:30 p.m. Saturday, Aug. 20. Buses will load at Woodhaven Association in Sublette to go to the host farm. A reservation ticket is required to board the bus. Call the Woodhaven Association office at 815-849-5200 for
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tickets. Call the Farm Bureau office at 815-857-3531 for more information. • The Young Leader Committee is sponsoring a Harvest for All food drive through Saturday, Aug. 20. Donations of non-perishable food items or cash may be dropped off at the Farm Bureau office. All items collected will be donated to food pantries in Lee County. • The District 4 meeting will be at 6 p.m. Monday, Aug. 22, at the Mendota Civic Center. Dinner will be served. Call the Farm Bureau office at 815-8573531 or e-mail leecfb@comcast.net by Friday for reservations or more information. CDONOUGH — The annual McDonough County Farm Bureau
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Foundation golf outing will be a 8 a.m. shotgun start Saturday, Aug. 20, at Gold Hills, Macomb. Cost is $50 each or $200 per team. Proceeds will benefit the Ag in the Classroom program. Call the Farm Bureau office for more information. ADISON — The annual ice cream social will be at 6:30 p.m. Thursday at the Fireman and Legion Park, Alhambra. Bingo games and a “bouncey house” will be part of the festivities. EORIA — The Grassroots picnic will be at 6 p.m. Tuesday, Aug. 23, at the Farm Bureau park. A pork loin dinner will be served. Call the Farm Bureau office at 686-7070 for reservations or more
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information. • Farm Bureau will sponsor a bus trip Friday, Aug. 26, to the Half Century of Progress Show, Rantoul. Cost is $25. The bus will leave the Farm Bureau office at 6:30 a.m. Call the Farm Bureau office at 686-7070 for more information. • Farm Bureau will sponsor a bus trip Wednesday, Aug. 31, to the Farm Progress Show, Decatur. Cost is $25. The bus will leave the Farm Bureau office at 6:30 a.m. Call the Farm Bureau office at 686-7070 for more information. “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.
Carroll County YL set ‘Harvest for All’ record “This year, one of our
BY CHAS WELCH
A little marketing acumen helped the Carroll County Farm Bureau Young Leaders achieve a record “Harvest for All” donation this year. Committee members contracted 2,500 bushels of corn this past spring for July delivery in anticipation of a successful program.
Young Leaders challenged the committee to take a risk and look at the potential dollars we
could donate to our food pantries this year as the economy continues to struggle,” said Carroll County Farm Bureau Young Leader Chairman Ed Livengood. “The risk proved to be successful, but only because of the generosity of our farmers and members here in Carroll County.” A total of 1,500 bushels was
contracted at $7.60 a bushel, and another 1,000 bushels was contracted at $7.06. After contacting county farmers for corn donations, the Young Leaders used semis to pick up the corn. Through the generosity of 58 farmers, nearly 2,500 bushels of corn was collected, and cash donations of $3,925 helped set a record of $22,344.33 that will be split among the four food pantries that serve Carroll County. Over the seven years the Young Leaders have been participating in the program, donations have totaled $97,774.70.
Chas Welch is manager of Carroll County Farm Bureau. She can be reached at 815-244-3001.
IFB Action Teams elect leaders Illinois Farm Bureau Action Team members recently met in Bloomington and elected officers for 2012. Those elected for leadership positions on each of the four Action Teams are as follows: Quality of Life Team — Carrie Boelens (Henry County) chairman, Carol Jerred (Hancock County) vice chairman; Public Relations Team — Mitch Heisler (Henry County) chairman, Kevin Miller (Effingham County) vice chairman; Membership Team — Josh Curry (Henry County) chairman, Linda Wikoff (Knox County) vice chairman; and Education Team — Carleen Paul (Madison County) chairman, Dana White (Woodford County) vice chairman. Carleen Paul and Josh Curry also were elected to serve as the chairman and vice chairman, respectively, of the Action Coordinating Council. As vice chairman, Curry will serve on the 2012 IFB
Resolutions Committee. Men and women involved in IFB Action Teams meet twice a year in Bloomington. They select service on the team that matches their interest and experience. Applications currently are open for 2012 Action Teams. To apply for a team, 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} and then select Programs and Activities/Committees/Action Teams.
Page 9 Monday, August 8, 2011 FarmWeek
government
EPA proposes ‘tailoring,’ House proposes trimming BY MARTIN ROSS FarmWeek
The U.S. House proposes alterations to greenhouse gas (GHG) “tailoring” plans aimed at reducing the deficit while reining in the U.S. Environmental Protection Agency (EPA). The House’s fiscal 2012 EPA spending bill would divert half the agency’s $6.2 million in annual GHG reporting program funds to deficit reduction. The measure passed 235191, with nearly a dozen Democrats voting in support and an equal number of Republicans voting against it. The Senate, which has held out for more stringent EPA air
regulation, must sign off on the appropriations measure. The White House has pledged to veto the House bill. EPA collects emissions data from large “stationary” greenhouse sources such as power plants and refineries. Under a phased, sector-by-sector “tailoring” rule, EPA is expected eventually to expand requirements to livestock operations. Phase II of EPA’s tailoring schedule kicked in July 1 with requirements for smaller industries with 100 tons to 250 tons of annual emissions. The American Farm Bureau Federation’s Rick Krause warns the tailoring rule poses an agricul-
tural “double whammy”: high energy costs and burdensome permit requirements “when (EPA) works all the way down” to the farm level. EPA estimates the cost of a permit at $23,000. With some 37,000 farms potentially subject to permitting, it projects cumulative ag costs at $866 million. Krause said EPA’s minimum 100-ton GHG permit threshold could affect farms with as few as 25 dairy cows, 50 beef animals, or 200 hogs. However, even EPA Administrator Lisa Jackson has admitted unilateral U.S. reductions will not significantly address global climate concerns, he said.
“These agencies are regulating for the sake of regulating,” he told FarmWeek. “Many of these regulations would not achieve what they’re supposed to achieve. Greenhouse gas regulation isn’t going to clean up the environment unless the rest of the world goes along with it. “And then you have regulations that duplicate what other agencies or other parts of agencies already are doing. A good case in point is the EPA Clean Water Act pesticide permit. Pesticides already are regulated under pesticide labels. You’re imposing additional costs on farmers to get ‘clean water’ permits for nothing, for no benefit.”
By a mere 14 vote margin (220-206), the House also approved a spending amendment to move $50 million from EPA’s Climate Change fund to the Great Lakes Restoration Initiative, a multi-agency effort to reduce pollutants in and around the Great Lakes and control invasive species in the lakes. Meanwhile, Krause anticipates a court ruling on EPA greenhouse rules “one way or another” within the next year. EPA “took a very calculated gamble” in hoping to win support for its efforts via the tailoring rule, and “people think it’s going to be very vulnerable in the courts,” he said.
Direct payments likely will be ag’s major contribution to debt reduction, he advised. He also sees a push to cut “redundancy in programs,” citing “a lot of overlap” between crop insurance and the Average Crop Revenue Election and Supplemental Revenue standing ag disaster programs, and suggests consolidation or elimination is possible. The House rejected any tax increases to raise budget revenues, but the drive to find dollars could endanger existing tax measures of importance to producers.
The imperiled ethanol blenders tax credit expires Dec. 31, and current estate tax relief measures expire at the end of 2012. “We do have some work ahead of us,” Gebhards said. One possible bright spot could be reduction in program funds for regulatory agencies such as the U.S. Environmental Protection Agency. That could “slow down or bring some reason to the regulatory process,” Gebhards said.
But all those steps would carve merely a sliver from the budget deficit. The fiscal commission faces tough choices regarding big-ticket federal entitlement programs if it hopes to achieve future budget objectives, Thompson argued. “If those don’t end up on the table, we can’t solve the problem,” he said. “You could eliminate everything the federal government spends other than
interest on the national debt, Medicaid and Medicare, Social Security, and defense, and you wouldn’t balance the budget. “The Constitution says we have to pay the interest on the national debt, and in all likelihood, we’ll see interest rates rising. The interest on the debt could be expected to explode in the future, creating an even bigger challenge as it crowds out other areas of federal spending.”
Debt Continued from page 1 However, Thompson deemed it unfortunate “Congress demonstrated how difficult it is to make the hard decisions.” He noted the financial community’s “lack of confidence in the U.S.’ ability to manage its financial problems.” The Dow Jones industrial average dropped 513 points last Thursday amid anxieties about the U.S. economy and European debt. Major stock indexes fell more than 10 percent below previous highs, “and I don’t think it’s over,” Thompson said.
Rural Development awards grant to Illinois River road byway The Illinois River Road National Scenic Byway recently received a $99,000 USDA rural business enterprise grant from USDA Rural Development Illinois Director Colleen Callahan. “Given the uncertain future of FHWA (Federal Highway Administration) funding for the National Scenic Byway Program, this grant helps the organization diversify its funding sources,” said byway director Anaise Berry. The byway covers 10 counties: LaSalle, Bureau, Putnam, Marshall, Stark, Peoria, Tazewell, Woodford, Fulton, and Mason. The grant will provide technical assistance for small emerging businesses. The Illinois River Road was designated a National Scenic Byway in 2005 by the U.S. Department of Transportation Federal Highway Administration. The Illinois River Road’s gateway communities include Ottawa, Princeton, Peoria, Pekin, Canton, and Havana. For information, go to {www.illinoisriverroad.org}.
FarmWeek Page 10 Monday, August 8, 2011
RURAL ILLINOIS
Public to get sneak peek of rural museum at Pinckneyville Aug. 16 BY DANIEL GRANT FarmWeek
People interested in the history of farming and rural life will have an opportunity on Aug. 16 to get a glimpse of the Illinois Rural Heritage Museum in Pinckneyville. A ribbon-cutting event will be held at 6 p.m. Aug. 16 for the opening of the signature barn, which houses tack for horses and other related items, at the museum site located near the Perry County Fairgrounds. That event will coincide with the opening of the American Thresherman Association (ATA) show that will be held near the site beginning Aug. 17. That event is expected to draw about 20,000 people. However, a large portion of the 22,000-square-foot museum, which formerly housed a mobile home manufacturing company, still is under construction. “This is just a preview of what people will see when the main museum opens,” said Charlie Greer, president of the Illinois Rural Heritage Museum and ATA, who is leading the effort to turn the museum from a dream into a reality. “I’ve always wanted to have or start a museum” said Greer,
who describes himself as a farmer, coal miner, and tractor enthusiast. Eight years ago he found the current site he thought would be perfect for the rural museum. But it took five more years before Greer found a partner — The Foundation for Pinckneyville — to buy the facility (the foundation has a long-term lease with the museum). The museum will be completed and opened in phases. The signature barn was the first phase. Phase II of the project is the opening of a rural life section of the museum that will display historic items from a doctor’s office, antique dental equipment, an old school room, and a general store. Construction of Phase II started in June and Greer anticipates that portion of the museum will open in January 2012. “Some people think this is going to be a tractor museum because I collect tractors,” said Greer, who has a personal collection of 86 functioning antique tractors. “But it’s life in rural Illinois (from about 1850 to 1950)” that will be the focus of the museum. The portion of the museum
Charlie and Mary Greer carry birdhouses into the main entrance of the Illinois Rural Heritage Museum in Pinckneyville. Charlie Greer, president of the museum, made 50 birdhouses out of extra lumber during construction of the new museum and is selling them to raise money for the project.
that will feature larger horsedrawn equipment, threshing equipment, steam equipment, and old trucks will be Phase III. Greer did not provide a timeline for when he hopes future phases of the large museum project will be complete. Much
Above, left, the Greers look over blueprints during Phase II of construction at the Illinois Rural Heritage Museum in Pinckneyville. The first phase of the museum, a signature barn with horse tack and other related items, nearly is complete and will be unveiled at a ribbon-cutting event
federal grant money. However, the project still is quite reliant on public support, Greer noted. More information about the museum is available by e-mailing irhmuseum@gmail.com or by calling 618-521-2245.
Aug. 16 at 6 p.m. At right, the Greers demonstrate a husker shredder that dates back to the early 1900s. The museum, when completed, will give visitors a glimpse of farming and rural life from the 1800s through the mid-1900s. (Photos by Ken Kashian)
U.S. Ed Deptartment to focus on rural schools The U.S. Department of Education will promote the strengths, opportunities, and challenges in rural education throughout August. This will include highlighting the work of teachers and students in rural areas online at {www.ed.gov/rural-education}. In addition, Education Department officials will participate in White House Rural Council roundtable discussions in several states and hold meetings in Washington, D.C. “Rural schools are critically important to our nation’s future prosperity,” said U.S. Secretary of Education Arne Duncan. “As we prepare for the new school year, it is important to recognize the unique opportunities and challenges in rural
of it depends on the rate of public donations of money and historic items for display. The museum has received support from such entities as Illinois Farm Bureau, Monsanto, Case IH, John Deere, and Union Pacific. It also received
schools and communities. “Our nation needs the skills and talents of rural children and adults. More rural students need to access college and career training beyond high school to meet the needs of their local economies.” According to the National Center for Education Statistics, more than half of public school districts (56 percent) and nearly one third (31 percent) of public schools are in rural communities. Almost a quarter of students (23 percent or 11.3 million) live in rural areas. Overall, high school graduation rates are high in many rural areas; however, rural students are less likely than their urban peers to continue their education.
DATEBOOK Aug. 12-21 Illinois State Fair, Springfield. Aug. 16 Agriculture Day and Sale of Champions, Illinois State Fair, Springfield. Aug. 18 University of Illinois Agronomy Day, South Farms, Urbana. Aug. 19 Cover crop workshop, seeding demonstration, 9 a.m. to noon, Franklin Farm, Lexington. For meal reservations or details, call 309-452-0830. Aug. 19-21 Horse Days 2011, 6 a.m. to 11 p.m. daily, Boone County Fairgrounds, Belvidere. Call 866-675-2783 or go online to {www.horsedays.net}.
Page 11 Monday, August 8, 2011 FarmWeek
RuRal issues
Survey shows county wind farm zoning continues to change BY KAY SHIPMAN FarmWeek
Illinois counties continue to change zoning ordinances to allow for large-scale wind farms as the state’s wind energy industry evolves, according to Jolene Willis, wind energy program assistant with the Illinois Institute for Rural Affairs (IIRA).
“It’s pretty fluid within the time period when (wind zoning) ordinances started. It’s been a learning curve for the state and the counties,” Willis told FarmWeek. She discussed a 2011 survey of county wind zoning for large-scale projects at a recent state wind energy meeting in Chicago. New trends emerged in the
Master grain contracts don’t negate grower rights BY MARTIN ROSS FarmWeek
Master grain agreements can set the stage for a solid, longterm relationship between farmer and elevator. But such overarching contracts also may be laden with potential traps that could leave an unwitting producer without recourse — or even financially liable — in the event of buyer bad faith or default. Master agreements set down standard delivery and pricing provisions for subsequent forward contracts between a given buyer and producer. Such agreements consolidate complex and potentially variable contract “fine print” into a single, concise document that “controls the relationship for a number of years,” legal consultant Jerry Quick told FarmWeek. The long-term implications of a master agreement also demand that farmers thoroughly review — and grasp — all provisions, Quick stressed. The retired Illinois Farm Bureau senior counsel noted “a definite lack of understanding” of contract terms by many producers. Failure to understand seller rights, buyer obligations, and ‘ I n r e a l i t y, t h e producer options for legal problems are recourse can prove disastrous there no matter in the event of a buyer-seller how high or low dispute, he argued. Of particular concern are the grain con“arbitration” provisions developed tracts are.’ by the National Grain and Feed Association (NGFA), which in most cases block producers from — Jerry Quick airing grievances in open court. Legal consultant Under those provisions, a third-party, non-lawyer arbitration panel renders the final decision in a dispute, raising concerns that elevators (i.e., NGFA members) may hold an unfair advantage especially in a “close case,” Quick noted. “Sometimes, concerns are not as great when grain prices are high, but when prices are not so high, the concerns become greater,” he said. “In reality, the problems are there no matter how high or low the grain contracts are. “If producers see a reference to the ‘grain trade rules’ of the NGFA, that’s a potential red flag — the grain trade rules have embedded within them the arbitration rules. The grain trade rules themselves can be problematic when applied to the relationship between a farmer and his local elevator.” Southern Illinois attorney Brian Kalb notes NGFA Arbitration Committee members and arbitrators include employees of grain-buying companies. Individual farmers thus are unlikely to serve as arbitrators, and, to date, NGFA arbitration has “overwhelmingly” ruled in favor of buyers, Kalb told producers at the recent IFB Commodities Conference. IFB Assistant General Counsel Laura Harmon sees the possibility of a “legislative fix” for individual grain contract issues, “but not for all of them.” Amid concerns about mandatory arbitration in particular, the IFB Resolutions Committee tentatively has approved for December delegate consideration a White County Farm Bureau proposal that seeks legislation requiring USDA to develop a standard grain contract for use by all U.S. elevators. “There is precedent at the federal and state level for producers to be able to opt out of mandatory arbitration,” Harmon noted.
third wind zoning survey of large-scale wind development, according to Willis. Previous surveys were conducted in 2007 and 2009. The Illinois Clean Energy Foundation funded the 2011 survey. One change was turbine setback requirements. Fifteen county governments now require one setback distance for landowners who don’t have turbines on their property and a different setback for landowners with turbines, Willis said. For large-scale projects, the most common setback distance from property lines is 1.1 times the turbine height. Other zoning changes have happened in decommissioning requirements for turbines in large-scale wind farms. The requirements have become more detailed and specify the types of financial assurances, appraisal costs, timing, and procedures of decommissioning, she said. County ordinances “are keeping up with technology as it keeps changing,” Willis said. As of July 2011, 45 coun-
ties regulate large-scale wind projects as part of their zoning codes and six counties have stand-alone zoning ordinances for large-scale wind projects. Eleven counties have zoning ordinances that don’t regulate large-scale wind development; the remaining
counties don’t have zoning. However, some counties have zoning ordinances specifically for small-scale wind projects, Willis added. The full survey with county-by-county information soon will be available online at {www.illinoiswind.org}.
FarmWeek Page 12 Monday, August 8, 2011
Page 13 Monday, August 8, 2011 FarmWeek
technology
New solutions program offers farmers marketing nudge BY KAREN JONES
With constant price fluctuations and the cost of inputs, farmers today must look to new tools to help manage their risk. “Today’s market volatility can cause farmers to procrastinate in making marketing decisions,” said Gordon Miller, Western Grain Marketing manager in Rushville. “With the market movement we are seeing today and the influence of outside markets, farmers fear leaving too much money on the table by making a sale in the morning and (then seeing) the markets are limit up by noon.” To help farmers diversify their grain marketing plan, AgriVisor LLC, Doane, and ProFarmer have teamed up to offer the Crossover Solutions Insight Program. Through this program, producers forward contract a cer-
tain number of bushels through any of the three participating analysts, who then use their individual strategies to determine when to sell the grain. Each time a sale is made, participating producers will receive a voice message explaining how much was sold and why. “The voice messages that the farmer receives as part of the program, in my mind, is the greatest benefit,” said Graham Utter, AgriVisor senior risk manager. “It serves as a tap on the shoulder to encourage farmers to consider selling their other bushels at the same time the professional analysts are selling.” Producers who enroll in the program during the month of August will receive the “Rainy Day” promotion, which provides a one-cent-per-bushel discount off the cost of the program for each day in April
New website connects farmers to growing world, each other Today’s farmers don’t have time to sit and visit with their neighbors like they used to. However, there is still great value in building relationships, sharing information, and asking for advice. A new website and mobile application, cropNAtion, will allow farmers and ranchers to connect with each other whether they are across the country or across the section. The site, {www.cropnation.com}, is designed to serve as a one-stop resource for on-the-go information. After creating a profile, users are able to share information about their operations, ask and answer questions, upload photos and videos, and access the latest markets and weather conditions. “We saw a need for farmers and ranchers to have a ‘virtual coffeeshop’ — a place where they could ask questions, share stories and photos, and cultivate relationships,” said Jim Spradlin, GROWMARK vice president of agronomy. “GROWMARK is pleased to sponsor this site, which we hope will be fed by farmers everywhere.” Anyone with an interest in North American agriculture may register for and use the free site. The mobile application will be available for iPhone and Android platforms by late summer.
2012 that the airport in Bloomington records more than 1.5 inches of rain. “If a risk management program includes cost of production calculations, a diversified marketing plan, and crop insurance, it will help keep farmers profitable long-term,” Miller said. “Crossover Solu-
tions is one way to introduce diversity to that program.” Each of the three participating organizations is dedicated to providing producers with marketing information, commentary, and advice, along with multiple products and services to assist producers in marketing their grain.
More than 25,000 producers subscribe to at least one of the three services. Farmers interested in the program may contact AgriVisor at 800-676-5799. Karen Jones is GROWMARK’s publications and news specialist. Her e-mail address is kjones@growmark.com.
Free service designed to give farmers an ‘edge’ BY DANIEL GRANT FarmWeek Farmers looking for an advantage in the highly competitive world of production agriculture may find an “edge” online. A new website {www.growers-edge.com} was designed to help farmers maximize their profit potential. “Our goal is to help you increase your bottom line,” Craig Mouchka, president of Growers Edge, told producers recently at the Illinois Farm Bureau commodities conference in Normal. The service, which is free to farmers, provides up-to-date crop prices within a 200-mile radius of each user’s farm and helps farmers establish the best price for their crops by calculating grain bids compared to trucking and storage costs. Farmers during busy seasons even can have all the price information sent directly to their cell phones. “It’s a very volatile market. Margins are close to where they were at in the past,” Mouchka said. “It’s important to get to know your marketplace.”
The Growers Edge website also helps farmers identify, track, and achieve profit goals for each individual farm and analyze and test risk management and marketing plans prior to implementing them. Growers Edge provides other crucial information such as weather forecasts, basis price updates, farm news, and market commentary. “We’re not an advisory service. We’re not going to tell you when and where to sell,” Mouchka said. “We provide information to help you get the best price. “The best part about Growers Edge is it’s free to all farmers,” he noted. Revenue for Growers Edge is generated by advertising on the site. Growers Edge also features a phone support line farmers can call if they have questions or experience trouble with the website. Mouchka noted all information about each farm operation on the website is confidential and not subject to third-party disclosure. Growers Edge currently has a user base of more than 10,000 farmers, he added.
FarmWeek Page 14 Monday, August 8, 2011
proFitability
Reasons why a U.S. trade deficit is not alarming BY MIKE WOODS
A populist complaint — almost a religion — about our country’s policies and economic well-being is the worry about a consistent and sometimes growing “trade deficit.” We are all familiar with headlines Mike Woods such as “Rising trade deficit could drag down U.S. recovery.” Such beliefs and statements are reflective of concerns that existing U.S companies are losing business, and domestic jobs are going overseas.
Such fear-mongering can lead to trade policies that do more harm than good by raising import barriers (tariffs) and restricting access to free trade. As with most populist thinking about economics and how the world really works, the issues of trade are much more sophisticated than a simple measure of imported and exported goods and services. Note that the issues are not complicated, however. First, for a company in a foreign nation to want to trade with the U.S., it must want U.S. dollars in exchange for the goods and services provided. It is silly to think that foreign companies simply stockpile
IWA to host wheat forum Aug. 23 The Illinois Wheat Association (IWA) will host a Summer Wheat Forum on Tuesday, Aug. 23, at the Knights of Columbus Hall, 12454 State Route 143, in Highland. The purpose of the forum is to help wheat producers plan their fall planting. Session topics will include seeding strategies; yields and issues surrounding the 2011 Illinois wheat crop; use of genetic resistance and fungicides to control scab; a wheat crop insurance update; nitrogen sources and inhibitors for wheat; and weed management. Registration the day of the event will begin at 8 a.m. Sessions will begin at 9 a.m., and the forum will conclude at 3:30 p.m. Lunch is included. More information can be found at the IWA website {www.illinoiswheat.org} or by calling IWA manager Diane Handley at 309-557-3662. The forum is made possible through the support of the USDA Risk Management Agency.
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $12.00-$48.04 $35.58 $32.00-$38.00 $33.41 n/a n/a This Week Last Week 20,571 30,037 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $100.36 $98.80 $74.27 $73.11
Change 1.56 1.15
USDA five-state area slaughter cattle price Steers Heifers
This week 110.09 111.00
(Thursday’s price) Prev. week Change 107.57 2.52 108.00 3.00
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 134.00 1.05
This week 135.05
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-200 lbs. for 179-220 $/cwt. (wtd. ave. 198.33); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 7-28-11 5.8 16.2 32.0 7-21-11 6.0 23.7 38.8 Last year 10.8 24.1 34.0 Season total 1446.7 184.1 1627.2 Previous season total 1405.3 151.1 1689.6 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
cash in the company vault; the foreign company must have a need to use U.S. currency to further its profits and growth. And, in fact, that is what happens. Foreign companies return the money to our soils through investment in assets that create jobs or provide cash to U.S. sellers of investments and assets who do the same. And in the last couple of decades, foreign companies have purchased tremendous amounts of Treasury bills, thus helping fund our government’s prolific spending. The money all comes back home.
Secondly, U.S. companies as well as consumers save money by importing goods and services from foreign companies. Again, it is silly to think that companies and consumers who save money through importing simply horde those savings and do not put them to good use. In fact, both groups are now able to buy other goods and services or make other investments, building assets and creating jobs, or buy Treasury bills with those savings. And finally, a free economy works best and most efficient-
ly when the market provides companies and investors with feedback as to what it is willing to pay for goods and services, quality considered. That feedback is best provided through the freedom of the consumer choosing the best offering available. When America’s labor policies price goods and services out of the market, cheaper imports signal the market how to price it back in.
BY DANIEL GRANT FarmWeek
allow farmers and traders to hedge such things as interest rates or commodity price risk or to speculate on the direction of the market. “We feel it’s a product the industry needs,” Brian Corrigan, associate director of agricultural products at CME Group, said recently at the Illinois Farm Bureau commodities conference in Normal. “The fertilizer market right now is limited to big players in the industry.” Fertilizer frequently is traded in increments of 5,000 tons to 10,000 tons at a time, according to Corrigan. The new swaps allow individuals to trade certain fertil-
izers via 100-ton contracts. “The smaller size contract fits the producer-size or that of co-ops,” Corrigan said.
Mike Woods is GROWMARK’s director of strategic analysis and research. His e-mail address is mwoods@growmark.com.
New CME Group products help manage risk
A new product offered by the CME Group may help farmers and farm cooperatives better manage price risk in the highly volatile fertilizer market.
FarmWeekNow.com Learn more about the CME fertilizer contracts and swaps at FarmWeekNow.com.
CME Group last month unveiled an over-the-counter fertilizer swap (a swap is a derivative in which two parties exchange certain benefits of one financial instrument for another) futures contracts. Swaps are intended to
Milk price hits 4-year high
The Class III price for milk adjusted to 3.5 percent butterfat for the month of July was $21.39 per hundredweight, $2.28 higher than the previous month, and a four-year high. The relentless heat has cut into milk supplies. Dairy farmers are reporting a 25 percent drop in milk production due to the high temperatures. With the long duration of heat stress, it is doubtful production will return to seasonal levels. Processors report that it has just been so hot even ice cream sales have been lagging.
‘The fer tilizer market right now is limited to big players in the industry.’ — Brian Corrigan Ag product specialist CME Group
“No longer will the big traders determine the price in a nontransparent way.” The new cash-settled, fertilizer swap futures are available for urea, urea ammonium nitrate (UAN), and diammonium phosphate (DAP). Clearing services for the new fertilizer swaps will be available through CME ClearPort, a set of flexible clearing services open to over-thecounter market participants to mitigate counter-party risk and provide neutral settlement prices across all asset classes. CME Group will wait to see how successful the new fertilizer swaps are before it considers adding contracts for other products, such as anhydrous ammonia, Corrigan noted. CME Group earlier this year launched weekly grain options contracts for corn, soybeans, and wheat. “It works like a standard option, but with a cheaper premium,” Corrigan said of the new weekly grain options. “They’re good for flexibility to deal with short-term risk (such as weather or other events that impact crop prices).” The majority (about 90 percent) of weekly grains options are corn. CME Group currently is developing weekly options for soy meal and oil, Corrigan added.
Page 15 Monday, August 8, 2011 FarmWeek
PROFITABILITY Corn Strategy
C AS H ST RAT E GI S T
Economic uncertainty skyrockets Last week’s decline in equity markets was a situation that has been fomenting for a few weeks. Concern was initiated in early July because of poor U.S. job growth and higherthan-expected unemployment. The inability to come up with a package to rein in our government’s debt and to raise the debt ceiling became an increasing drag the latter part of July, overshadowing the economic problems highlighted by routine economic reports. Even the latest Gross Domestic Product report on July 29 mostly was ignored due to the intense focus on the debt negotiations. But that report indicated just how poorly our economy was performing. Second quarter growth was a paltry 1.3 percent. But the downward revision in first quarter growth to 0.4 of a percent was the
most startling factor. The passage of the debt package allowed the negative economic indications to come to the fore, keeping downward pressure on the stock markets last week. Midweek, worries escalated that Italy, the world’s eighth largest economy and the European Union’s third largest, would slide into debt distress. Suddenly, debt contagion fears gripped currency and equity markets, allowing stock markets around the world to spiral sharply lower. When the equity markets started to implode, commodities moved down with them, due to investors moving to pull money out of riskier assets and to shore up faltering equity portfolios. Even though stock markets stabilized Friday, none of the ingredients that drove those markets lower the last few weeks has materially changed. While a 2008-type collapse is highly unlikely, economic concerns will now be a drag on markets, commodities included.
AgriVisor endorses crop insurance by
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number
309-557-2274
Cents per bu.
ü2010 crop: If you still have old crop, get it sold. The shift in weather and change in sentiment in “outside markets” appears to be turning the short-term trend down. ü2011 crop: The break below $7 on December futures should not be ignored. Still, it takes a close below $6.60 to confirm the shift. That positions the corn market to decline into the 20-week low due in early/middle August. If you are comfortable with production prospects, boost sales to 60 percent, preferably with a hedge-to-arrive (HTA) contract for winter/spring delivery. vFundamentals: Last week’s harsh break in equity and energy markets should not be taken lightly. The issues behind those declines will not go away quickly, making demand prospects for commodities, corn included, more uncertain. The shift to a cooler, wetter weather pattern for much of the Midwest should at least stabilize production potential. Yields have been hurt, but maybe not as much as some imply.
Soybean Strategy
ü2010 crop: With little carry in futures into 2012 and prices still near the highs, there’s no reason to hold oldcrop inventories. ü2011 crop: The break below $13.50 on November futures indicated the shortterm trend has turned down, positioning prices to stay weak into month’s end. If you are comfortable with yield prospects, add a 10 percent sale if November rebounds to $13.50. At a minimum, use strength for catch-up sales. vFundamentals: Both supply and demand features took a hit this past week. The shift to moderate temperatures, and forecasts for rain into mid-August should improve yield prospects for the crop. The crop may not be as good as last year’s, but coupled with the good supplies coming out of South America, a reasonable crop should be enough to meet demand. And demand prospects took a hit this past week with the break
in equity markets hinting economic problems may be deeper than being discussed.
Wheat Strategy
ü2011 crop: Wheat lost momentum following a break in financial markets. If Chicago September futures closed below $6.69, there is little support until $6.50. If you need to move wheat out of storage before fall harvest, either get it priced, or arrange for commercial storage. The carry in futures more than pays for commercial storage. For sales, we prefer HTA contracts for winter or spring delivery
because of the carry. vFundamentals: The fundamental structure for wheat remains negative with comfortable supplies and soft demand, especially exports. Exporters are facing aggressive competition from Black Sea countries. A recent Egypt purchase was sourced from Russia. Recent weather has boosted Northern Plains and Canadian Prairies production prospects. ûFail Safe: If Chicago September futures close below $6.68, add another 10 percent sale.
FarmWeek Page 16 Monday, August 8, 2011
pERspEcTIvEs
Financially supporting youth in ag — now and in the future For parents, teachers, and students alike, the end of August and the first part of September mark the start of another school year — new clothes, school supplies, class registration and, for parents of youth involved in FFA and 4-H, add fair and stock show projects to the list of items required for the upcoming school year. As summer gives way to fall, youth involved in agriculture eagerly anticipate the Illinois State Fair and SCHERRIE livestock show GIAMANCO season. It’s an opportunity for hard-working youth to exhibit an impressive array of livestock, cooking, art, woodworking, and ag mechanics projects and to compete in livestock judging, landscape design, public speaking, and equestrian events. Fair season is one in which months, weeks, days, and hours of preparation culminate in the fervor of excitement and anticipation as everyone has his or her eye on the grand champion show ring or coveted blue ribbon. Although certainly about
healthy competition, fair and show season also is about responsibility, planning, good sportsmanship, and camaraderie. Parents, teachers, 4-H leaders, and FFA advisers have worked hard to instill in young minds the importance of good business acumen – record-keeping, financial management, accountability, etc. The Farm Service Agency (FSA), through our youth loan program, would like to add business planning and a good credit history to that already impressive skill set. In this day and age, one cannot underestimate the value of good credit. FSA’s youth loan program is designed to provide up to $5,000 in start-up funds to establish, expand, and operate income-producing projects of modest size to youth between the ages of 10 and 20 who live in a community with a population of 50,000 or fewer. As an added benefit, youth who successfully fulfill the terms of their loan obligations also establish an excellent credit history - something most people spend a lifetime trying to build and maintain. The youth loan success sto-
Livestock shows help students learn responsibility and earn money for their future. (FarmWeek file photo)
ries are endless across the U.S. and here in Illinois. Young farmers and ranchers nationwide are using the youth loan program to expand projects, herds, and operations to such an extent that these endeavors provide money for college tuition and economic security. Parents, teachers, and leaders have done their part to teach the concepts of respect,
responsibility, and resourcefulness. Let FSA add creditworthy and financially independent to the list of qualities used to describe America’s next generation of agricultural leaders. On behalf of the Illinois FSA, I want to say, “Best of luck” to all the exhibitors who will participate at the Illinois State Fair as well as the fairs, livestock shows,
and contests that follow throughout the year. For more information about FSA’s youth loan program, contact your local USDA Service Center or go online to {www.fsa.usda.gov/il}. Scherrie Giamanco is state executive director of the USDA Farm Service Agency in Illinois.
Red barns linked to mummies, flowers, and fiber Driving down the road recently, I noticed a red farm building. It was one of those metal-sided buildings that have become commonplace on farms these days. The fact that it was red caused me to wonder, why? I harkened back to a child’s toy farm set that included a big MARI red barn, along LOEHRLEIN with a pig, a cow, some chickens, and even a white picket fence. The big red barn with its gambrel roof is lodged in the American psyche as an iconic symbol of the farm, but why
red? Little did I know my seemingly innocent question would lead me back through the ages to white linen and blue flowers. Older barns are usually constructed of wood, and, understandably, farmers paint their barns to preserve the wood. This is a practice that dates back a very long time, at least to Europeans prior to American settlement. At one time, skimmed milk, red iron oxide (rust), lime, and linseed oil were mixed together as a homemade paint. The rust was known to prevent the growth of mold and mildew that rotted the wood. Reportedly, some people even added the blood of animals, possibly for its iron content. In
‘Factory farms’ are driving little guys out of business
neighbors and use so-called modern farming methods to raise livestock, including overcrowding of animals and restricting movement of hogs and chickens in big factorytype buildings. Laws are being passed in Europe allowing animals more space, and some states in this country are passing laws regulating space and freedom of movement. How can anybody support overcrowding of hogs and locking chickens in tiny cages? Big factory-type farms drove thousands of hog farm-
Editor: I read your July 11 front page article about the latest rant against the Humane Society. I’ve been farming since 1947 and have been a Farm Bureau member since 1954. Farm Bureau is a good organization in many ways, but some of the members and officers seem to think ethics are old-fashioned and don’t mean much anymore. Some people seem to think if you are a large farmer, it’s OK to take land from your
some cases, only linseed oil and rust were mixed together and used as a wood preservative. I got to wondering about the linseed oil. It is used as a drying agent in paint and helped the milk mixture to soak into the wood, thus preventing the paint from peeling off in sheets. It turns out that linseed oil comes from the plant known as flax, of the genus Linum. As its genus name suggests, fibers from the flax plant are used to make linen. This is the cloth that was used to wrap Egyptian mummies, but it also was used extensively for clothing at least 7,000 years ago. Linen was an important commodity for trading with Arabs and Persians.
Modern folks may recognize flaxseed as one of the richest sources of fiber as well as the healthy omega-3 fatty acids that help reduce “bad” cholesterol, and antioxidants known as lignans. But flax has so many other uses, it could well be dubbed the “all-in-one plant.” Some examples of flax uses include: dye, rope, paper, medicine, fishing nets, hair gels, soap, cattle feed, and linoleum. I, myself, have benefitted from a number of these uses, but there will always be a special place in my garden for the small blue flax flower. The flowers are at the tips of thin, airy branches about 10 inches off the ground. They
LETTER TO THE EDITOR ers out of business and ruined itary conditions were so bad it the chicken business for small flock owners. It’s about time the government started regulating the hogs and chicken business to prevent disease and raise animals in a humane manner. If you can’t raise animals in a humane manner, get out of business and let the small guys take over. Some farmers need regulation because they get too greedy. Look at that guy who raised thousands of chickens in Pennsylvania and Iowa — san-
caused an E-coli outbreak. Government inspectors should have made him raise his chickens in a more humane manner and prevented the dis-
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open every morning and close by mid-afternoon. The fine-textured stems of bluish-green and the smallish flowers give the plant a soft, delicate appearance. If you use it, place it at the front of the bed where you will pass it each morning so you can fully appreciate its charm. Little did I know when I first wondered about the redness of barns that it would lead me so far and wide, from ancient Egypt to the flowers in my own garden. Mari Loehrlein is a horticulture professor in the School of Agriculture at Western Illinois University, Macomb. Her e-mail address is MMLoehrlein@wiu.edu.
ease outbreak. I pasture-raise hogs and used to have small flock chickens. KEN SANDERSON, Leland be accepted. A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701