AnnuAl meeting delegates said they want local elevators to accept aflatoxin test results from USDA-approved testing facilities. ..........................................4
A HigHligHt of last week’s annual meeting was a presentation by one of the Illinois Farm Families field moms, a Chicago area mother of two. ................................8
implements oF husbandry always are required to h a ve a s l o w m o v i n g ve h i c l e emblem attached, but there also are other requirements. .............16
Monday, December 10, 2012
Two sections Volume 40, No. 49
IFB urges ‘well-thought,’ growth-oriented fiscal plan BY MARTIN ROSS FarmWeek
As House leaders and President Obama continued to haggle over the terms of a “fiscal cliff ” solution, Illinois Farm Bureau delegates last week warned of the potentially dire consequences of a fiscal cliffhanger. At IFB’s annual meeting in Chicago, members called on Congress and the White House to craft a “fair, predictable, and well-thought long-term approach” to fiscal policy. The president last week rejected House Speaker John Boehner’s latest bid to head off potentially severe budget cuts and expiration of key federal tax measures in January. In a general resolution forwarded to the president and the Illinois congressional delegation, IFB delegates recommended a fiscal solution that involves significant federal spending cuts “and encourages economic growth, resulting in revenue growth through an expansion of the tax base.” Farmers urged policymakers to retain the soon-to-expire $5 million personal estate tax exemption, indexed to inflation and with a top 35 percent tax rate, “until a time when the tax can be eliminated.”
Illinois Farm Bureau voting delegates display their cell phones and smartphones in a show of support for an IFB action request seeking congressional extension of the current estate tax exemption and rates and existing capital gains tax rates and Section 179 expensing/bonus depreciation benefits. The gesture opened delegate policy debate last week in Chicago. (Photo by Ken Kashian)
Any fiscal cliff deal must maintain the existing 15 percent capital gains tax rate, raise the exemption under the Section 179 small business expensing option to $500,000, and continue to allow bonus depreciation of equipment, delegates argued.
Ogle County Farm Bureau President Brian Duncan, who presented the resolution, noted, “We’re very concerned about the consequences if we go over the cliff.” A drop in the estate tax exemption to $1 million would challenge “our ability to
continue intergenerational businesses,” he maintained. Section 179 and bonus depreciation provisions “stimulate equipment sales, stimulate manufacturing, stimulate economic growth,” Duncan maintained.
“We believe, ultimately, the way to resolve the debt issue is to grow the economy, create a bigger pie,” he said. “We can’t tax ourselves out of this situation. “Our concern is that things will be enacted that will be exactly the opposite of what we need. Instead of growing the economic pie, they will cause the economic pie to contract. They will exacerbate the current situation, not resolve it.” Houses divided Boehner’s latest plan reportedly offered $2.2 trillion in federal spending cuts and savings and, according to Peoria Republican Rep. Aaron Schock, answered the president’s call for $800 billion in added federal revenue over the next decade. The House Republican plan would have cut $600 billion in health care costs, $300 billion in other mandatory spending, and $300 billion in discretionary spending, and made $200 billion in revisions to the Consumer Price Index — the basis for Social Security benefit increases. Obama held to his plan to raise revenues through increased taxes on high-income Americans. Addressing IFB delegates, Rep. Adam Kinzinger, a See Fiscal plan, page 5
River work could start soon Periodicals: Time Valued
IFB seeks emergency action to speed solution
Initial work to remove potential barriers to Mississippi River navigation could begin later this month, according to the U.S. Army Corps of Engineers. Illinois Farm Bureau, meanwhile, is pushing to expedite remaining roadblock removal in an effort to ensure grain and goods continue to move via river this winter. Last week in Chicago, IFB delegates sought presidential “emergency action” to ensure Mississippi water levels do not fall below needed commercial navigation levels. They urged the Corps to “expedite and fully implement alternative emergency measures,” including removal of Mississippi rock “pinnacles” (jagged rocks) at Thebes and Grand Tower south of St. Louis.
The Corps is authorized to award contracts for rock blasting work at Thebes within the next few weeks. The Thebes portion of the project could begin by late December, Assistant Secretary of the Army for Civil Works Jo-Ellen Darcy told Springfield Democrat Sen. Dick Durbin Thursday. However, the Corps still needs administration approval to expedite contract bidding for rock removal at Grand Tower, Corps officials reported. Under its guiding Missouri River Master Water Control Manual, the Corps began curtailing flows from Missouri River reservoirs that feed nearly 38,000 cubic feet of water per second into the Mississippi.
FarmWeek on the web: FarmWeekNow.com
Thanks to some limited rainfall, river levels were falling at a slower rate last week, buying shippers “a few days of time,” Corps Vicksburg District spokesman Bob Anderson told FarmWeek. Drought and reduced flows affect both channel depth and width, and Waterways Council Inc. Vice President Paul Rohde told FarmWeek “we may be looking at a complete closure if we can’t address this issue.” However, Corps officials claim to need federal authorization to deviate from the master manual, and barge and ag interests are prioritizing rock removal. Two firms have been identified for See Rivers, page 3
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, December 10, 2012
annual meeting
Nelson: Illinois Farm Bureau built to stand the test of time BY DANIEL GRANT
IAA FOUNDATION FUNDRAISERS — Several activities during the IFB annual meeting helped the IAA Foundation raise money to support the Illinois Agriculture in the Classroom program. The first events, a live auction and an ice cream social, raised $20,835 and $1,300, respectively. An estimated $10,000 was raised through a three-day silent auction. About 100 items were donated for sale. Thirty-one teams competed in a trivia contest. The event is on track to raise $8,500 for ag literacy programs. A 50-50 raffle alone collected more than $1,400 in cash. The Winnebago-Boone Farm Bureau team placed first in the trivia contest’s county Farm Bureau category. The Douglas County Farm Bureau team placed second, and the Sangamon County Farm Bureau team won the membership team spirit award. A staff spirit award was won by a team that included representatives of member services and public relations, governmental affairs and commodities, and news and communications divisions. PENNY WAR — Young Leaders during the IFB annual meeting in Chicago hosted a penny war that raised $6,872.28. The money was given to the winners of this year’s penny war, the Young Leaders of District 15, who will disperse the money to local food pantries. District 15 raise $1,935.61. A penny war is held each year at annual meeting. A collection jar for each IFB district is placed on a table in the exhibit hall so meeting attendees can make donations. HOT COMMODITY — Illinois broadcaster Orion Samuelson ran out of copies of his new book ahead of schedule last week during his book signing at the Illinois Farm Bureau annual meeting in Chicago. Diane Montiel, with Bantry Bay Publishing, the book’s publisher, said IFB members snatched up 150 copies of the book, You Can’t Dream Big Enough, in a little more than an hour. Another hastily obtained 100 copies of the 400-page book also sold out. Samuelson and his “This Week in Agribusiness” TV show sidekick, Max Armstrong, a veteran of IFB’s RFD Radio Network, entertained Farm Bureau members at the Dec. 2 general session by interviewing five county Farm Bureau presidents about their award-winning programs between musical selections provided by The Roadhouse Band. Copies of the book may be obtained online at {bigobook.com}.
(ISSN0197-6680) Vol. 40 No. 49 December 10, 2012 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2012 Illinois Agricultural Association
STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
FarmWeek This was a challenging year for farmers due to the severity of the drought and its various consequences. But farmers and Farm Bureau are resilient and prove year after year they can bounce back from adversity, according to Illinois Farm Bureau President Philip Nelson. Since IFB was founded, it survived the Great Depression, Dust Bowl, World War II, and various natural disasters such as this year’s drought, Nelson noted last week in his annual address at the IFB annual meeting in Chicago. “A lot has changed (in the last 100 years),” Nelson said. “But the vision of our founding fathers in setting up this organization has been proven to be able to stand the test of time, serving farmer interests over the years.” However, in order to maintain the success for another 100-plus years, farmers must unite and be creative to find solutions to a number of current challenges, said Nelson, the 14th president in IFB history. “We need to unite more than ever before, given the seriousness of issues we’re facing,” he said, speaking extemporaneously, as he has in each of his annual addresses. The debt crisis in the European Union could be a preview of what is to come here, he said. The U.S., which this year has a budget deficit of $1.1 trillion, has an overall debt of nearly $17 trillion. And nearly a quarter (24 percent) of the national debt is owned by China. Japan owns 21 percent and the oil exporter countries of the Middle East own 5 percent, said Nelson. “We face our own fiscal cliff,” Nelson said. “It is time
lawmakers at the state and national level get their arms around this important issue. We need to stress to our lawmakers the importance of addressing this problem.”
IFB President Philip Nelson
Nelson believes there are two possible pathways to pursue in the future. One is to embrace capitalism, the preferred route, and the other is the far less desirable route of a greater role for government. “I believe our fiscal situation can best be addressed through policies that encourage business growth, leading to greater employment, personal wealth, and growth in our tax base,” he said. Nelson also called for common sense regulatory framework and tax policy that is long-term, sensible, and built to last for the ag industry. The number of regulations facing agriculture tripled in the last three years at a cost of nearly $500 billion. And if regulations concerning total maximum daily loads in the Chesapeake Bay watershed (which will idle 600,000 acres of farmland) are applied to the Mississippi River watershed, it could lead to the idling of 1.5 million acres of farmland in the Midwest. “We need to get back to a common sense approach for regulations,” Nelson said. “Farmers are the No. 1 stewards of the land.” Nelson urged IFB members to voice concerns about
tax policy to their elected officials. Capital gains taxes and estate tax rates are set to increase while estate tax exemptions are set to decrease, which could be quite costly for heirs of farmland, he said. “We need tax policy that allows us to pass our farms from one generation to another,” Nelson said. Nelson also stressed the importance of free and fair trade for agriculture. USDA recently projected ag trade this year in the U.S. will produce a $30 billion surplus. (See graph on page 18) Looking ahead, farmers and Farm Bureau need to be creative in finding solutions to address the changing demographics in the ag industry, how to connect with consumers, and how Farm Bureau in the next century can continue with a business model that’s built to last. “We’ve got to do the best we can to make sure this organization and family of companies are built to last the test of time,” Nelson added.
Tuesday: • Harvey Freese, Freese-Notis Weather Service • Dale Durchholz, AgriVisor analyst • John Huston, vice president emeritus of the National Cattlemen’s Beef Association and recent Charles Shuman Distinguished Service Award winner Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Ann Larson, the 2012 Young Leader Discussion Meet winner • Brent Pollard, newly elected Young Leader Committee chairman • Bob Flider, director of the Illinois Department of Agriculture Thursday: • Illinois Soybean Association representative • Gayle Jennings, clinical dietitian, Memorial Medical Center, Springfield • Jean Payne, president of the Illinois Fertilizer and Chemical Association Friday: • Sara Wyant, AgriPulse publisher • Baxter Black, cowboy poet and keynote speaker at the upcoming Young Leader Conference • Alan Jarand, RFD Radio director To find a radio station near you that carries the RFD Radio Network, go to FarmWeeknow.com, click on “Radio,” then click on “Affiliates.”
Page 3 Monday, December 10, 2012 FarmWeek
ANNUAL MEETING
Quinn shares challenges with Farm Bureau delegates Mississippi River an ‘extreme crisis’ BY KAY SHIPMAN FarmWeek
Gov. Pat Quinn assured Farm Bureau members last week he is working to address “the crisis of the moment,” historically low levels of the Mississippi River. “This is an emergency. This isn’t a garden variety issue,” Quinn told reporters after his speech to Illinois Farm Bureau delegates at the annual meeting in Chicago. “It is an extreme crisis. We also have to do more dredging on an emergency basis, perhaps blasting” to make the river more navigable. Quinn was the first governor in recent memory to address IFB’s annual meeting. But Illinois has other prob-
Gov. Pat Quinn
lems besides low river levels that threaten barge traffic, said Quinn as he delved into the state funding issues. The state’s fiscal problems “won’t get under control until we deal with the serious, com-
plicated, and challenging issue of pension reform,” the governor said. He appealed to farmers’ understanding of “meeting difficult and hard challenges.” The state owes $96 billion in pension liability and adds another $17 million in liability each day the pension system remains the same, according to the governor. Afterward, Quinn told reporters the state needs pension reform or the annual pension payment “will squeeze out everything ... This is our biggest challenge.” The governor also pointed out farmers still struggle with drought repercussions. He recalled the devastation he saw this summer on a Jefferson County farm where ears of corn were so small they resembled “something you
would put on a salad.” Agriculture comprises 40 percent of the state’s economy and is key to the governor’s goal to increase exports, he noted. Quinn quipped that part of his job is “exporter in chief ” and mentioned an upcoming trip to Mexico.
“It is really important for your community to tell our federal officials and our state officials how important it is to have strong exports from our state,” Quinn said. “I look forward to working with you on tough issues in the coming weeks,” the governor concluded.
Legislators pass river resolution The Illinois House of Representatives last week joined the state Senate in adopting a resolution seeking to keep the Mississippi River open for commerce. Senate Joint Resolution 80 was sponsored by Sen. John Sullivan (D-Rushville) and Reps. Jil Tracy (R-Quincy) and Jerry Costello (D-Smithton). The measure calls on President Obama to declare an emergency and keep the Mississippi River open to barge traffic. Low water levels are threatening to close the river later this month. “It is significant that legislators are presenting a united front in asking the federal government to act now to avert a possible economic disaster,” Sullivan said. — Kay Shipman
IFB proposes river partnerships to tap export growth potential enhance its role in feeding that population. Transportation’s the critical Recognizing Panama Canal potential link in serving that growing and a continued lag in federal river demand.” funding, Illinois Farm Bureau delegates With scheduled expansion of the last week suggested new publicPanama Canal by 2015, the private partnerships as a way to average size of oceangoing finance infrastructure projects. ‘The benefits being foregone by vessels will increase signifiCurrently, navigation ASCE reported. That delaying these projects is a huge cantly, improvements must be funded will necessitate new or reha50-50 through federal appropria- drag on our economy.’ bilitated locks facilities on the tions and tax-based revenues Mississippi and other major from an industry Inland Waterinland channels, the group — Mike Toohey maintained. ways Trust Fund. However, trust Waterways Council Inc. fund revenues are low, and ConAccording to ASCE, costs gress has yet to act on the indusattributable to delays in try’s proposals to boost its own fuel tax opportunity to do that,” Toohey told inland navigation were estimated at rates. $33 billion in 2010 and are expected FarmWeek. “We don’t have a proIn its 2012 annual report card to rise to nearly $49 billion by 2020 gram currently, but we have a precereport, Failure to Act, the American dent in the highway program. We cer- without needed river improvements. Society of Civil Engineers (ASCE) During an IFB mini-seminar spontainly are looking at all solutions. gave the nation’s inland waterways sored by the Illinois Corn Marketing “The benefits being foregone by transportation system a “D,” citing a delaying these projects is a huge drag Board during last week’s annual $15 billion gap in needed infrastrucmeeting, Informa Economics transon our economy. As world populature investment. tion increases, we have a tremendous portation analyst Ken Eriksen quesWaterways Council Inc. President tioned whether U.S. infrastructure is opportunity for agriculture to
BY MARTIN ROSS FarmWeek
Mike Toohey hailed IFB’s “innovative thinking,” citing the success of similar partnerships supported by the Federal Highway Administration. “We’re still looking for our first
River Continued from page 1 Thebes-area work: Anderson reported both could be contracted to “expedite the work even more quickly.” Thebes is the area where pinnacles initially could impede dredging necessary to head off restrictions on winter barge movements or loadings, he said. According to Anderson, “justification to expedite” Grand Tower contracts would be based on an assessment that river conditions are “potentially harmful to the government.” That could include the threat of major job losses, disruption of manufacturing, or concerns about food security, he said. U.S. Rep. Aaron Schock, a Peoria Republican who led 62 lawmakers seeking action by the Corps, noted 80 percent of the jet fuel used at Chicago’s O’Hare Airport is shipped via barge. “A lot of corn must be exported in the next few months,” said Pike County Farm Bureau President David Gay, who offered IFB’s resolution at last week’s meeting.
“At this time of year, a lot of materials come up the river, such as fertilizer, road salt, coal.” The plan is to have divers place explosives within Thebes-area pinnacles and remove materials loosened by detonation. “That allows us another foot to 1 1/2 feet of depth at those locations, if all goes according to plan,” Anderson said. Barges need at least nine feet of draft. Meanwhile, IFB urged the Corps to “exercise its authority to address situations when circumstances justify deviation” from the Missouri manual. In a letter to Durbin, the Corps argued it lacked authority to adjust seasonal flows for navigation. Rohde argued the Corps has that authority, noting past “alterations” to annual operating plans. Eleven of the Corps’ last 14 scheduled Missouri River spring “rises” have been canceled because of high water levels, he said. “In the manual, it says that in case of extreme conditions, the Corps can operate in the best interests of the country,” Rohde said. — Martin Ross
“ready for the Panama Canal expansion.” Panama Canal channel improvements will allow heavier loadings of larger ships at the Gulf. Eriksen noted major port improvements in Brazil, and told farmers some Brazilian shippers “are now in play to compete with you” in accessing Asian markets via the Panama Canal. “If you can load Panamax ships to their full capability, that gives you 11,000 to 15,000 more tons of grain on a ship,” he told FarmWeek. “You start redistributing costs, and that makes the center Gulf more competitive with Pacific Northwest (ports) to the tune of $5 to $10 a metric ton. “Now you start stretching your (grain) draw area for the river, for the center Gulf, for the Panama Canal. And if you can go to even larger vessels, that draw area increases more, because you get lower freight costs.”
FarmWeek Page 4 Monday, December 10, 2012
annual Meeting
Road-closing authority tops IFB local policy debate BY KAY SHIPMAN FarmWeek
Problems stemming from one official’s authority to close local roads could lead to legislation that would disseminate power among local officials. At the Illinois Farm Bureau annual meeting last week, delegates voted to include in policy a requirement that a unanimous decision of a highway commissioner, a county engineer, and a majority of the elected board members associated with the road district be reached before a reduced weight limit could be permanently posted or a district road closed. Amy Thompson, Warren-Henderson County Farm Bureau president, told fellow delegates how a restrictive weight limit on a local road in her area negatively impacted farmers and is now in court. Thompson assured delegates the intent of the policy proposal submitted by her county Farm Bureau was not to interfere with temporary road weight limits but to seek broader approval for permanent weight limits or road closures. Several delegates sought more information about road commissioners’ authority and local government structures. Some questioned the general
wording of the policy proposal. Kevin Rund, IFB senior director of local government, explained local road district governing bodies are structured differently around the state. “The (policy) language was broad to cover all cases,” Rund added. LOCAL ELECTION authorities were at the core of lengthy debate on proposed policy related to election judge requirements. The proposed policy supported efforts to reduce the min-
‘I struggle getting election judges. It is a big problem dealing with this.’ — Don Guinnip Clark County Farm Bureau
imum requirement of election judges for each precinct from five to three. Some local authorities, particularly in rural areas, have difficulty finding election judges, according to several delegates. “I struggle getting election judges.
It is a big problem dealing with this,” said Don Guinnip of Clark County FB. A few delegates suggested judges would be easier to surface if they received more pay, but other delegates raised other concerns. “We have some elections when only 20 (voters) show up and we have five judges,” said Henry County FB delegate Kevin Urick. “You need as many eyes as you can (have) on an election,” added Mary Ann Deutsche of Will County FB. Delegates voted to refer the policy proposal to the State and Local Government Subcommittee of the Resolution Committee for action next year. With no debate, delegates voted to support establishing regulations for hydraulic fracturing (fracking) and horizontal drilling to better protect land and water resources. Delegates also voted to oppose any moratorium on horizontal drilling and hydraulic fracturing in the state. In the last legislative session, several related pieces of legislation, including a one-year moratorium on fracking, were introduced in the General Assembly but did not pass. Negotiations on fracking standards have continued. IFB is seeking transparency in the wells’ operation and
reporting of chemicals used in the process. County FB delegates also voted to oppose a severance tax on existing low-producing oil and gas wells. Any severance tax on new high-capacity oil and gas wells should not be at a level that would impede the wells’ development or operation, according to policy. Earlier this year, IFB worked to defeat legislation that would have created a 12 percent tax on proceeds received from a well’s production — essentially a gross receipts tax. The legislation also did not adequately protect surface owners. On other natural resource issues, county FB delegates voted to oppose any increased regulation of tile drainage of farm fields. On nutrition matters, delegates voted to support revisions to the school lunch menu to provide meals that are dietetically healthy and provide sufficient caloric levels of grains, fruits, vegetables, and milk, as well as increased portions of meat and dairy protein. As a result of delegate action, IFB will expand its use of Internet communication to provide clear, consistent, and uniform messages about agricultural topics.
IFB supports policy move to ensure ag labor security Illinois Farm Bureau last week endorsed policies aimed at helping agriculture meet acute labor needs and lawmakers resolve controversial immigration-border security issues. IFB farmer delegates in Chicago approved policy supporting “employment-based” federal immigration visas for workers “who have a demonstrated work history and can pass an appropriate background screening.” American Farm Bureau Federation (AFBF) supports a five-year “ag card” for workers currently in the U.S. and a two-pronged visa program suited to individual
employer/worker needs. Illinois Specialty Growers Association Chairman Harry Alten, who served on the IFB Grassroots Issue Team that recommended an improved visa Harry Alten program, cited not only the temporary seasonal needs of the state’s fruit and vegetable growers but also year-round labor demands in the dairy sector that aren’t being met by existing “guest worker” programs. And Alten noted rising labor pressures related to
growth in Illinois’ agritourism industry, which integrates consumer entertainment, on-farm processing, retail sales, and, in many cases, expanded specialty production. “They’re looking for workers, and they can’t find them locally,” he told FarmWeek. “Even at 8 percent unemployment, they’re never going to go to the farm. Plus, you need people with job skills, and that’s usually migrant workers.” AFBF labor specialist Kristi Bosworth noted wide-ranging ag groups were working with AFBF to put “more meat on the bones” of labor policy proposals. Bosworth sees “an
increased energy” in addressing immigration issues powered in part by campaign commitments and recognition of how Latino concerns about immigration “could be critical in future elections.” House Republicans have honed in on the STEM Jobs Act, which would focus on visas for foreign science and technology students. That measure is “relatively narrow” and unlikely to offer a home for ag reforms, according to Bryan Little, chief operating officer with the California Farm Bureau-affiliated Farm Employers Labor Service. Senate leaders lean toward comprehensive reform, “and that’s where we’re probably
going to be able to hitch a ride,” possibly in February or March, Little said. “I think we’re going to encourage the House to do things that are more friendly to the interests of employers,” he told FarmWeek. “The Senate will be looking at doing things that are more friendly to the interests of workers. “We might wind up getting some sort of a guest worker program out of the House that’s fairly friendly, in relative terms, to our interests. The Senate probably would pass some adjustment of (worker) status that’s somewhat broader. We need to make sure we have someplace to fit within that.”
This fall’s corn aflatoxin concerns have Illinois farmers searching for answers that will assure them the right price at the elevator and the insurance protections they need. Following extended debate at last week’s Illinois Farm Bureau annual meeting in Chicago, delegates supported policy that encourages local elevators to use and accept aflatoxin test results from USDA-approved testing facilities when determining mycotoxin content. Frustrations have arisen because of differences in local corn sampling and testing methods, equipment, and tech-
nologies and reported contradictions between elevator and USDA test results, particularly in Southern Illinois. False positive tests or nonrepresentative samples can lead to grain price discounts or even rejection at the elevator or, on the other hand, rejection of crop insurance corn quality claims. “It’s a grave industry problem,” Effingham County delegate Dale Wachtel stated, noting some elevators currently accept USDA results and others do not. Pike County’s Jim Koeller acknowledged the challenges in selecting and accurately analyzing aflatoxin
traces in grain samples “that represent the whole truckload,” and agreed elevator testing this season has appeared “erratic at times.” But several delegates expressed concern about the potential cost of USDA testing fees ($30 per test) and possible delays in grain offloading related to USDA tests. Koeller suggested testing methods are improving, and urged delegates to “let the industry work on this.” “Right now this merely is a matter of ‘encouraging,’” Wachtel nonetheless emphasized. “I’d hope that the ele-
vators and the grain industry would help us solve the problem.” Beyond differences in testing methods, IFB Resolutions Committee Ag Production/National Issues Chairman Bob Brackmann noted differences in cleaning equipment or procedures used at individual elevators between deliveries. That also can lead to inconclusive or conflicting results from elevator to elevator, he maintained. At the same time, delegates rejected a proposal that would have encouraged elevators to work with USDA in develop-
ing a voluntary program under which USDA would certify elevators to use a single grain sample and test for both grain grading and crop insurance purposes. Proposal sponsor David Carr of Macon County suggested such a program in many cases would reduce producer delays in receiving test results. But because it would require some elevators to upgrade testing equipment or practices, Wachtel was concerned it would place smaller, less well financed local elevators at a relative disadvantage. — Martin Ross
BY MARTIN ROSS FarmWeek
Aflatoxin testing concerns weigh on county FB delegates
Page 5 Monday, December 10, 2012 FarmWeek
ANNUAL MEETING
IFB delegates revive old divide over traceability BY MARTIN ROSS FarmWeek
Some Illinois farmers view implementation of animal traceability measures as a crucial step in safeguarding U.S. export market share. Others worry about the cost of potential requirements for a struggling Illinois livestock sector. Delegates in Chicago revived their perennial divide over the issue before supporting revised policy calling for a voluntary “disease traceability program” that includes initial “minimal standards” for identification and tracking. Calhoun County Farm Bureau President Robert Reed labeled the proposal “the same rejected ideas, just written differently.” “Here we go again,” argued Hancock County delegate Sam Zumwalt, who moved unsuccessfully to strike the policy language. “This still sounds like a mandatory program to me.” However, first-time Knox County delegate Grant Strom saw support for improved traceability as “an opportunity for us to be proactive.” He said he sees inevitable pressure for live-
stock trace-back in a global market where only the U.S. and India have not implemented comprehensive traceback systems. Winnebago County Farm Bureau President Earl Williams noted the “cost to cattle producers in terms of lost revenue” resulting from the past BSE incident. Stephenson County’s Kathy Brenner, who touted the effectiveness of a current Canadian tagging-ID program, warned producers that “one incidence of an outbreak, and your market is gone.” Some 27 percent of U.S. pork and 13 percent of milk production moves into export channels and cattle prices on average have risen $200 per head “just because of exports,” Adams County’s David Dedert noted. “As a consumer, when I hear about an E. coli outbreak in spinach, I don’t go to the store and buy spinach,” Strom warned colleagues. “The train is coming down the tracks. This way, we get out ahead of it.” Delegates advocated efforts to “quickly and accurately” trace animals in the
event of an outbreak but that don’t pose “a burdensome cost to livestock farmers.” They encouraged interstate
uniformity in identification standards and adoption of standards that meet “the expectations of foreign gov-
Illinois Farm Bureau delegate Patricia Titus of Douglas County addresses what she saw as the need for improved animal traceability capabilities during last week’s IFB policy debate in Chicago. (Photo by Cyndi Cook)
ernments and our customers overseas.” The program should focus on ensuring “the U.S. reputation as a reliable supplier of meat to foreign markets,” new policy emphasized. Delegates supported use of low-cost tags and a market entry-meat harvest “bookend” approach to track animal movements and lost tags. The proposal supports private sector incentives or potential penalties for livestock producers, but would require all exhibition livestock in Illinois to have a “unique” species-appropriate ID number and premises number before they could be shown. Potential application of traceability requirements to 4-H and FFA exhibitors was a major concern for some delegates. Patricia Titus, chairman of IFB’s 2012 livestock Grassroots Issue Team, acknowledged those programs are “near and dear to us,” but argued an effective animal ID system would provide a “learning experience” for young exhibitors. “We can’t let that dictate our business,” Stephenson County’s Brenner said.
No new voting members elected to IFB board BY DAVE MCCLELLAND FarmWeek
— in 2002 and 2007. All standing members from even-numbered IFB districts were up for election this year, and all were re-elected. They are: Chuck Cawley, District 2, Rochelle (Ogle County); Brad Temple, District 4, Serena (LaSalle); Randy Poskin, Dis-
Delegates approve one bylaw change
Fiscal plan
In an annual meeting rarity, no new voting members were elected to the Illinois Farm Bureau Board of Directors at last week’s gathering in Chicago. That has happened only twice in the past three decades
Delegates to the 98th annual meeting of the Illinois Farm Bureau in Chicago last week approved one bylaw change and defeated two others. Approved unanimously was a bylaw change to move the newly merged Winnebago-Boone County Farm Bureau into IFB District 2. Winnebago-Boone merged last fall. Prior to the merger, Boone was in District 1 and Winnebago was in District 2. Failing to receive the required two-thirds weighted vote for a bylaw change were two submittals, the first relating to when a member is no longer in good standing, and the second relating to multiple memberships.
trict 6, Ashkum (Iroquois); David Servin, District 8, St. Augustine (Knox); Dale Hadden, District 10, Jacksonville (Morgan); Chris Hausman, District 12, Pesotum (Champaign); Steve Hosselton, District 14, Louisville (Clay); Darryl Brinkmann, District 16, Carlye (Clinton); and Jim
Continued from page 1 Kankakee Republican, called the president’s $1.6 trillion tax increase and $50 billion in so-called added “mini-stimulus” funding “unacceptable.” Schock said House Republicans are willing to generate revenues through tightening of tax “loopholes and deductions” rather than an increase in tax rates. Spending cuts and entitlement reforms must be on the table along with Republican revenue proposals, Kinzinger said. “All hope’s not lost,” Kinzinger nonetheless told FarmWeek. “Republicans did a good thing by coming in and saying, ‘We want to strike a deal. Here’s what we’re willing to do ...’ “Now, it’s really on the president. He has to come forward and say, ‘Here’s what I’m willing to do in terms of cuts.’ We don’t have a tax problem in this country; we have a spending problem. We’re not going to raise any taxes or revenue issues and have nothing on the other side.” Death and taxes Kinzinger supports preserving the $5 million estate tax exemption. However, he sees the possibility of Congress having to compromise on a $3.5 million threshold under “a worst-case scenario.” Twenty-five-year-old Bureau County farmer Evan Hultine and his father have begun to consider Evan’s eventual succession in the operation. Given Illinois land values — a Bureau County
Anderson, District 18, Thompsonville (Williamson). There will be two new faces at the monthly board meetings, however. Advisory members Brent Pollard of Rockford in Winnebago County and Elizabeth Wahle of Collinsville in Madison County will be joining the board.
Pollard was elected chairman of the IFB Young Leader Committee, and Wahle will serve on the board by virtue of being elected president of the Illinois Extension Agricultural Association. She is an Extension educator serving Madison, Monroe, and St. Clair counties.
tract sold recently for $16,000 an acre — the family’s roughly 700-acre farm would fall prey to estate tax liability under a $1 million exemption. His father’s death thus could force Hultine to sell land or equipment “just to be able to pay the taxes,” he said. Morgan County’s Roger Hardy lost his mother, Phyllis, in May, and he and his 89-year-old father, George, have begun to explore estate tax planning. At current land values, Hardy estimates only 60 to 80 of his family’s 800-some acres would be exempt from estate taxes under a $1 million threshold, “and the rest would be taxed at 55 percent.” “Maintaining that $5 million is adequate at this point, and I’m hoping Congress can continue that,” Hardy said. Capitalization and cash flow At the same time, Section 179 and bonus depreciation have been important tools for the Hultines and Hardys. Faced with rising equipment costs over the past few years, Hardy began using bonus depreciation “as soon as it was available.” “We try to balance our expenditures and our depreciation every year to keep an even flow and a good balance to our business,” Hultine told FarmWeek. “That way, there are no big surprises year-in or year-out from our end. But with the current tax debate, there are a lot of things up in the air, and it’s hard to plan or to keep that steady balance going.”
FarmWeek Page 6 Monday, December 10, 2012
AnnuAL MEETIng
FB delegates focus on funding policy issues BY KAY SHIPMAN FarmWeek
County Farm Bureau delegates last week defeated a proposal to support slot machines at racetracks, despite proponents’ arguments that income from the machines would support the horse racing industry. The action came during the Illinois Farm Bureau meeting in Chicago. “Our intent is (to achieve) economic support of the horse industry,” Cook County Farm Bureau delegate Gerry Kopping said in explaining
why his county submitted the proposal. Brian Duncan, Ogle County FB, countered that the proposed policy would make Farm Bureau “a champion for gaming in the State of Illinois.” Several other delegates echoed his sentiment that the policy would give that Farm Bureau supports gaming. Under newly approved policy, IFB will encourage the Illinois Department of Agriculture to phase in an earlier schedule for the Illinois State Fair. The goal is for the State Fair to start at least a week
earlier because schools have returned to session during the fair’s current schedule. Next year’s fair will be Aug. 8-18. Ken McKee, Marshall-Putnam FB, asked what the potential impact would be for county fairs. “We felt the impact on county fairs would be minimal,” answered Bob Brackmann, DuPage County FB and chairman of the Agricultural Production and National Issues Subcommittee. “Every year schools start earlier, and State Fair attendance drops.”
State law requires an annual state fair, but does not specify a date. However, state administrative rules set maximum starting dates for the Illinois and DuQuoin state fairs of 25 days and nine days before Labor Day, respectively. In other action, delegates voted to encourage local elevators to use and accept of aflatoxin test results from USDA-approved testing facilities when determining aflatoxin content. After this year’s drought, inconsistent aflatoxin test results caused problems in
many areas. In Illinois, the Food and Drug Administration approved blending of aflatoxin-contaminated corn through Dec. 31 — if specific requirements are met. Corn with aflatoxin levels above 500 parts per billion cannot be blended. In education policy, county FB delegates voted to encourage universities to offers internships for students studying to become vocational agriculture teachers. The goal is to give future teachers hands-on experiences with farming operations, agribusinesses, or agricultural organizations.
RFS2 deemed vital as industry reaches ‘critical juncture’ BY MARTIN ROSS FarmWeek
Federal policymakers shouldn’t changes the rules of the biofuels game “just as we’re coming to a critical juncture” in ag-based energy production, warns DuPontPioneer senior technical manager Doug Haefele. Haefele led a “mini-seminar” on the federal Renewable Fuel Standard (RFS2) and the national “Fuels America” biofuels coalition at Illinois Farm Bureau’s annual meeting last week in Chicago. He told FarmWeek he was “stoked” after attending the Nov. 30 groundbreaking for DuPont’s new corn stover-based Iowa ethanol plant — a potentially key step toward commercialization of next-generation biofuels. Efforts to promote agbased fuels nonetheless are “predicated on the RFS2,” Haefele stressed. Last month, the U.S. Environmental Protection Agency (EPA) rejected a request by several governors and livestock groups to sus-
pend 2013 RFS2 ethanol fuel blending requirements. But the industry faces continued threats from congressional and other critics of ethanol corn use. In the wake of EPA’s decision, the American Petroleum Institute (API) filed the latest in a series of lawsuits aimed at blocking RFS2 implementation. API Downstream Director Bob Greco argued the need to “scrap the law and start over if Congress believes such a program is necessary.” Haefele acknowledged producer frustrations this season — “it’s been challenging for everybody and every end user of corn grain.” But he applauded EPA for making “a logical decision driven by its consistent interpretation of the law.” “Our company sits in the middle of an industry that’s keenly aware of the shortage of grain and the really substantial problems that’s causing for biofuels producers as well as livestock producers,” he said. “EPA recognized that the problem this year was the
drought — the problem was not the RFS2. EPA’s decision was a recognition of the right causal elements of the problem.” Haefele emphasized the RFS2’ prospective role in fostering new renewable energy sources and thus opportunities for growers and “rural economies.” DuPont’s Iowa plant initially is expected to draw excess stover from roughly 175,000 acres within a 30-mile radius. DuPont’s “$200 millionplus capital investment” in stover conversion represents a major “step change” for a cellulosic sector long portrayed as a pie-in-the-sky venture, he said. In addition, EPA last week announced grain sorghum-based ethanol
‘EPA recognized that the problem this year was the drought — the problem was not the RFS2.’ — Doug Haefele DuPont-Pioneer
would qualify as a renewable fuel under RFS2. Haefele believes industrywide players have stepped up to “make this industry a reality,” in response to public policy directives. In exchange, federal officials must ensure
reliable long-term biofuels policy, he said. “You can’t tell me the rules in the card game as we go along,” Haefele insisted. “You have to tell me the rules. Then I’ll learn to play the game and get busy.”
SERVICE WITH A SMILE
Delegates support RFS2, biomass crop funding Illinois Farm Bureau delegates last week emphasized support for the federal Renewable Fuels Standard (RFS2) as part of a stated new “focus on national energy security.” Delegates also supported continuation and funding for the farm bill’s Biomass Crop Assistance Program (BCAP). BCAP provides assistance to help farmers and foresters establish, produce, and deliver biomass energy feedstocks. BCAP offers matching payments for delivery of materials to qualified biomass conversion facilities that produce heat, power, biobased products, or advanced biofuels. The program also provides that annual payments may be available to producers who enter into contracts with the Commodity Credit Corp. to produce eligible biomass crops on contract acres within BCAP regional “project areas.” Recent expiration of the 2008 farm bill and a congressional push for reduced spending raise concerns about the future of the program. — Martin Ross
Randolph County Farm Bureau member Carol Meyer receives a scoop of ice cream from Illinois Farm Bureau Director Chris Hausman, Pesotum, center, while fellow IFB Director Chad Schutz, White Hall, prepares for the next customer. Prairie Farms Dairy donated ice cream for the ice cream social during the IFB annual meeting last week in Chicago. About $1,300 was raised for the IAA Foundation and ag literacy. (Photo by Cyndi Cook)
Page 7 Monday, December 10, 2012 FarmWeek
annual meeting
SNAP challenge to, integral part of farm bill BY MARTIN ROSS FarmWeek
Last week, Illinois congressmen saw hope for a House-Senate farm bill compromise, but “food stamp” spending remains a major question mark in the debate. U.S. Rep. Aaron Schock, a Peoria Republican, reported Senate Ranking Republican Pat Roberts (R-Kan.) has relented in his opposition to House Ag Committee-proposed commodity target price provisions aimed at winning farm bill support among Southern crop producers and Democrat lawmakers. The Senate has proposed replacing direct and pricebased farm payments, as well as the Average Crop Revenue Election program, with a new revenue safety net program. The House would offer the option of revenue or price supports. Roberts’ concession means “we can get a deal now,” said Schock, who predicted a “multi-year” farm bill would be included in “fiscal cliff ” proposals. Lawmakers have been divided over the price support issue and the gap between Senate- and House-proposed cuts in future Supplemental Nutrition Assistance Program (SNAP), AKA food stamp, funding. Roberts’ capitulation “would suggest Senate Democrats are willing to go
along with some changes in the food stamp program,” Schock told FarmWeek. Kankakee Republican U.S. Rep. Adam Kinzinger nonetheless is concerned the House ultimately may opt for a mere year’s extension of 2008 farm bill provisions. By offering $23 billion to $35 billion in long-term farm bill cuts, ag lawmakers have made a good-faith bid for deficit reduction, Kinzinger said. But he cited the stilldaunting challenge of reconciling a Senate-proposed $4 billion in SNAP cuts with a House plan to cut $12 billion over 10 years. “I commend ag for coming forward and saying, ‘We understand — we’re all part of a team; we have to give something up,’” Kinzinger told FarmWeek at Illinois Farm Bureau’s annual meeting in Chicago. “If the rest of the country came in with that attitude, we’d probably be a pretty good way toward solving our problems. “That said, we also want to make sure food stamps are held to the same level of accountability — it’s the biggest part of the farm bill. Unfortunately, we’ve run into some resistance there.” House Minority Whip Steny Hoyer (D-Md.) met last week with the American Farm Bureau Federation and other farm groups that reiterated the importance of finishing a new,
five-year bill. Without a new farm bill or at least a shortterm extension, a budget-conscious Congress would have to approve separate funding to continue dairy support, export promotion, and other programs that expired in October, IFB President Philip Nelson told reporters in Chicago. Further, Nelson cited congressional inaction on drought-related livestock disaster assistance, either as a freestanding proposal or as part of the proposed 2012 farm bill. “In a lot of cases, cattle producers have already gone through their hay supplies for the year,” he noted. Despite political challenges, Nelson and Kinzinger said they will resist proposals to decouple nutrition programs from the farm bill. Kinzinger stressed SNAP and related programs are key to garnering farm bill support from bipartisan lawmakers, and warned that without them, farm programs could “die.” Last year, the nation’s food stamp rolls “eclipsed 50 million (Americans),” at a cost of more than $74 billion, Nelson noted. “That shows you the impact of the food and nutrition programs as they relate to the farm bill,” he said. Kinzinger nonetheless argues the need for more stringent SNAP eligibility enforcement and perhaps even drug testing requirements for the program.
IFB delegates discuss CRP, crop insurance Illinois Farm Bureau delegates last week agreed that quality rather than mere quantity is key to the future of the Conservation Reserve Program (CRP). While delegates reaffirmed support for continued CRP funding, they renewed past policy provisions that encouraged USDA to enroll additional acres “to the maximum authorized by Congress.” That original statutory threshold was 36 million acres, but the program currently is capped at 32 million acres, and current enrollment falls well below that level. Ogle County delegate Brian Duncan said the level of program acreage per se “has no basis in the quality of the (individual conservation) project.” IFB policy continues to support expansion of any new CRP signups to include filter strips along waterways and around standpipes where surface water drains into subsurface supplies, setbacks at road intersections, and other targeted structures and practices. Duncan deemed IFB’s previous push for maximum enrollments “old language that goes back to supply management,” and questioned the “rationale” for idling new acres “as I look at a hungry world.” Logan County delegate Larry Gleason argued for reinstating the provision to provide a bargaining chip in congressional farm bill negotiations. “You can’t trade it if it’s still in policy,” Duncan countered. In other farm policy-related measures, delegates offered a number of proposals aimed at improving both revenue protections under the crop insurance program and the nationwide cost-effectiveness of the program. They encouraged USDA’s Risk Management Agency to offer the Trend Adjusted Actual Production History (TAAPH) yield endorsement for all insurable crops. This season, farmers with corn or soybean policies in Illinois and 13 other Midwestern states were given the option of increasing yields used in calculating crop insurance guarantees. The option now has been extended to wheat growers in a number of Illinois counties. Delegates also sought a new farm bill revenue safety net program that delivers producer payments no later than the crop insurance closing date for their next crop. — Martin Ross
Phelps new IAAA president
Illinois Farm Bureau President Philip Nelson discusses issues including the farm bill, the “fiscal cliff” debate, and the state budget with reporters prior to IFB delegate debate at last week’s annual meeting. (Photo by Mike Orso)
Bob Phelps of Rockton (Winnebago County) was elected president of the Illinois Agricultural Auditing Association (IAAA), Illinois Farm Bureau’s oldest affiliate, during the IFB annual meeting last week in Chicago. Phelps, who replaced retiring President Gary Luth of Allerton (Douglas County), had served as secretary and will continue as the GROWMARK Inc. representative on the board. Luth retired after 11 years on the IAAA Bob Phelps board. Jim Lynch of Stanford (McLean County) was re-elected vice president. Brad Wilson of Jacksonville (Cass-Morgan County Farm Bureau) was elected to represent Farm Bureaus on the board. James Sheaffer of Dixon (Lee County) was elected secretary, Terry Pope of Burnside (Hancock County) was re-elected as the IFB representative on the board, and Dennis Neuhaus of Hoyleton (Washington County) was re-elected to the board representing service companies. IAAA provides auditing services to agribusinesses throughout the Midwest. Lenders and regulators use its services, and its personnel are recognized as experts in audit and taxation of agricultural cooperatives and non-for-profit organizations. It is the only certified public accountant firm that specializes in agribusiness.
FarmWeek Page 8 Monday, December 10, 2012
ANNUAL MEETINg
IFF Field Mom: ‘Grateful I have you guys to feed me’
SILENT SHOPPERS
BY KAY SHIPMAN FarmWeek
A Chicago-area mother of two young children applied to be one of the first field moms so she could learn more about the food she fed her family. She said she gained new appreciation for farmers through the experience. “I’m grateful I have you guys to feed me,” Amy Hansmann of River Forest told county Farm Bureau delegates during the Illinois Farm Bureau annual meeting last week in Chicago. Hansmann was one of the original nine field moms selected by Illinois Farm Families (IFF). IFF is a coalition comprised of commodity groups for beef, corn, pork, soybeans, and IFB. Laughter erupted as Hansmann described her futile attempt to grow fruit and vegetables. All her efforts failed except for a giant cherry tomato plant behind her home. The plant, so large it was visible from the front of the house, produced 3,500 cherry tomaAmy Hansmann toes, she marveled. A mother of 2- and 5-year-old boys, Hansmann admitted she once paid more than $6 a gallon for organic milk. Her “aha moment” came when she discovered a “Where is my milk from?” website {whereismymilkfrom.com}. Hansmann reported she learned that both $4 per gallon premium milk and the $2.99 per-gallon store-bought milk came from the same plant. “I’m happy to report I pay only $2.99,” she said to applause from the audience. Hansmann also received loud applause with her statement, “Being a vegetarian for me is not an option.” A year of touring farms and asking questions “blew my mind,” she said, adding she learned modern farm machinery “has more in common with the Mars rover than a horse and plow.” Hansmann admitted she was uneasy with some aspects of modern farms, but said the animals she saw, especially the sows and baby pigs, “seemed happy enough to me.” She said she particularly appreciated hearing explanations of animal behavior and changes in animal housing from University of Illinois animal behavior expert Janeen Salak-Johnson. Before she became a field mom, Hansmann told the farmers, “I thought you all were nice people ... (but) I worried more about food. “I found the issues are way more complex than I thought,” she said.
Pat Cawley, left, Ogle County, and Linda Alexander, Carroll County, inspect one of many donated items for sale in the silent auction during the Illinois Farm Bureau annual meeting last week in Chicago. The IAA Foundation raised more than $10,000 through the sale of 100 donated items. (Photo by Cyndi Cook)
Voting for ‘Faces of Farming’ ends Saturday Illinois farmer among finalists
Online voting to help select national spokesmen for agriculture will conclude Saturday. Lee County farmer Katie Pratt of Dixon is one of nine national finalists selected by the U.S. Farmers & Ranchers Alliance. The winning “Faces of Farming and Ranching” will spend a year making public appearances and answering
consumers’ questions. Pratt and her husband, Andy, who is a seventh-generation farmer, grow corn, soybeans, and Katie Pratt seed corn for a regional family-owned company. They farm in partnership with Andy’s family and have two young children.
The Pratts have been honored for their volunteer work with Illinois Agriculture in the Classroom. Pratt is an accomplished public speaker, having been a state winner and national finalist in Farm Bureau discussion meets. Each individual may vote once daily at {fooddialogues.com}. A video about Pratt and each of the finalists also is available online. The winner will be announced in January.
Milk price moves down for November The Class III price for milk adjusted to 3.5 percent butterfat for the month of November was $20.83 per hundredweight. That is 19 cents lower than the previous month. Milk prices are showing their first retracement after five straight months of
SEUSSICAL SPIRIT
Sangamon County Farm Bureau’s team members, dubbed How Sangamon County Stole Christmas, show the spirit that helped them win a second consecutive Trivia Contest spirit award at the Illinois Farm Bureau annual meeting last week in Chicago. Thirty-one teams competed to raise money for the IAA Foundation and ag literacy programs. (Photo by Cyndi Cook)
higher prices. The mild fall and aboveaverage temperatures in December put more pounds in the bulk tank and into
the marketing chain. Producers are hoping strong holiday-season demand will push prices higher next month.
Page 9 Monday, December 10, 2012 FarmWeek
Three awarded IFB’s highest honor Harold Guither of Savoy, former Rep. Rich Myers of Colchester, and John L. Huston of Chicago last week were named recipients of the 2012 Illinois Farm Bureau Charles B. Shuman Distinguished Service Award. The awards, the highest given by IFB, were presented last week during IFB’s annual meeting in Chicago. Professor emeritus of agricultural economics at the University of Illinois, Guither received the award in recognition of his support and promotion of Illinois agriculture. In addition to serving as a professor in the department of agricultural economics at the U of I, Guither worked as an agricultural economist and editor at Doane Agricultural Service Inc. and as an agricultural communications adviser for the U of I Extension. He was active in the American Society of Farm Managers and Rural Appraisers, served on the staff of U.S. Rep. Paul Findley, and was a national program leader for the Extension Service of USDA. He served three years in Jordan as the chief of party and adviser in agricultural communications under a U of I and U.S. Agency for International Development partnership. He received his bachelor’s, master’s, and doctorate degrees from the U of I. He and his wife, Lois,
reside in Savoy. AWARDED THE Distinguished Service Award posthumously for his work on behalf of Illinois agriculture, former Representative Myers served six years in the U.S. Army Reserves and farmed in McDonough County for nearly 30 years before being elected to the Illinois House of Representatives. Myers was elected to the IFB Board of Directors in 1981 and served for 12 years. He championed the Livestock Management Facilities Act and supported countless renewable fuels measures, Illinois Department of Agriculture legislative initiatives, Grain Code legislation, and the Illinois Family Farmer Support Act. In his time in the state legislature, Myers served as the minority spokesperson of the Appropriations-Higher Education Committee and was a strong advocate for increased funding for the state’s public colleges and universities and the community college system. He also served on the Agriculture and Conservation, Higher Education, State Government Administration, Elections and Campaign Reform, and Renewable Energy committees. Additionally, he was awarded IFB’s Friend of Agriculture Award numerous times. He received a bachelor’s degree from Western Illinois University in 1973. Myers is survived by his wife, Christine, and daughter, Alison,
who accepted the award on his behalf in Chicago. A son, Nicholas, preceded him in death. VICE PRESIDENT emeritus of the National Cattlemen’s Beef Association (NCBA), John Huston served beef producers for more than 30 years. Huston joined the beef industry team in 1967 as assistant secretary of the Beef Industry Council of the National Livestock and Meat Board. He stayed with the meat board and the National Cattlemen’s Association until the two organizations merged to form the NCBA in 1996. He then was named the head of the Consumer Marketing Center for that organization. Huston currently serves as president of the U of I College of ACES Alumni Association, past chairman of the Illinois Agricultural Leadership Foundation, director of Extension Partners, and a delegate to the National Council for Agricultural Research, Extension, and Teaching. A native of Roseville in Warren County, Huston earned his bachelor’s degree in agricultural education from the U of I. He and his wife, Anne, live in Chicago and have three children. IFB’s Distinguished Service Award honors the memory and service of Charles Shuman, a Moultrie County farm leader who served as president of both IFB and the American Farm Bureau Federation.
Top: Harold Guither, professor emeritus of agricultural economics at the University of Illinois, and his wife, Lois, receive the Distinguished Service Award from Illinois Farm Bureau President Philip Nelson. Above: Christine Myers, wife of Rich Myers, and her daughter, Alison, accept the award for the former state representative and IFB board member, who was honored posthumously. Below: The award is presented to John Huston, vice president emeritus of the National Cattlemen’s Beef Association. (Photos by Ken Kashian)
Covert, Shoemaker earn IFB Eagle Awards for Excellence Sharon Covert of Tiskilwa and William Shoemaker of DeKalb received the 2012 Illinois Farm Bureau Eagle Award for Excellence last week at IFB’s annual meeting in Chicago. A nurse, farm wife, and organizational volunteer, Covert was instrumental in creating an Sharon Covert educational agriculture exhibit at the Museum of Science and Industry in Chicago. Covert still works with the museum to update and enhance
the exhibit. Additionally, she is working with the Smithsonian Institution to ensure that an upto-date agriculture exhibit will be placed as part of the American Enterprise exhibit. She said she took up the latest challenge with the Washington, D.C., museum when she noticed a plow in a kiosk and a replica of the cotton gin were the only two items representing agriculture. Covert has received numerous honors, including the Bureau County Agricultural Service Award. She served on the former IFB Women’s Committee; the Illinois Soybean Association board; the World
Initiative for Soy in Human Health; the U.S. Poultry Export Council; the U.S. Meat Export Federation; the United Soybean board, and the U.S. Export Council board. Covert and her husband, James, raise soybeans and corn. The couple has two sons, one daughter, and 10 grandchildren. Recently retired from the University of Illinois’ crop science department, Shoemaker worked for nearly 40 years on the university’s faculty. His research and outreach programs, including those on plasticulture, mulching, drip, irrigation, row covers, and high-tunnel systems, revolutionized the way food
crops are produced. Throughout his career, Shoemaker received several awards and honors, including William Shoemaker Academic Professional of the Year awarded by the department of natural resources and environmental sciences at the U of I; Illinois Specialty Growers Association’s Friend of the Industry Award; the U of I College of Agriculture, Consumer, and Environmental Sciences Academic Profes-
sional Award for Sustained Excellence; and the Illinois Vegetable Growers Association’s Award of Appreciation. He received his associate degree from Parkland College in 1976 and his bachelor’s degree in agriculture science from the U of I in 1983. Shoemaker and his wife, Barbara, have one daughter, three sons, and two grandsons. The IFB Eagle Award for Excellence provides IFB with an opportunity to recognize an individual or organization for excellence on issues or programs important to Farm Bureau and agriculture on a statewide or national basis.
FarmWeek Page 10 Monday, December 10, 2012
Larson wins YL Discussion Meet Ann Larson, Shabbona, will represent Illinois Farm Bureau in the Young Leader Discussion Meet finals at the 2013 American Farm Bureau Federation (AFBF) meeting Jan. 1316 in Nashville. Larson, a member of the DeKalb County Farm Bureau, won the 2012 state Discussion Meet last week at the IFB annual meeting in Chicago. She has been involved in Young Leaders for three years and was a finalist in the event last year. Larson currently is attending the University of Wisconsin-Platteville and is majoring in ag business with an emphaAnn Larson sis on communication. She graduates this month and plans to start a career promoting ag through marketing and communications. “I’m excited to be here,” Larson said after winning the Discussion Meet. “This year was a challenge. There was a very diverse group (of Young Leaders between the ages of 18 and 35 who participated in the event) so it made for interesting discussion. You never knew where the conversation was going to go.” The Discussion Meet is an exchange of ideas and information in which contestants must analyze problems and develop solutions in a cooperative manner. Larson and three other finalists discussed how Farm Bureau can play a role to ensure the viability of quality agricultural education programs within Illinois schools. “We need to get out there and support our local ag programs in high school as well as Ag in the Classroom,” Larson said. “And we need to make sure we’re reaching
middle school students. We don’t want to lose kids between Ag in the Classroom and high school programs.” As winner of the Discussion Meet, Larson will receive $2,500 cash from Illinois Farm Bureau, use of a Massey-Ferguson tractor courtesy of AGCO, and expense paid trips to the 2013 GROWMARK annual meeting, the AFBF Young Farmer and Rancher Conference, and the Young Leader State Conference. The runner-up in the Discussion Meet was Doug Kirk of Ver milion County. The other two finalists were Jesse Faber, Livingston County, and Caleb May, Richland County. IFB sponsors the Discussion Meet with the goals of developing young peoples’ leadership and communication skills on behalf of agriculture and of working together to reach consensus on how to deal with current issues in agriculture.
Swanson wins ACT Award Krista Swanson of Knox County won the Young Leaders’ annual Farm Bureau Agricultural Contact Team (ACT) award last week at the IFB annual meeting in Chicago. Swanson was one of nine individuals who responded to every action request Krista Swanson in 2012 and reported her contacts. Young Leaders held a drawing of the names of the nine individuals, and Swanson was selected as the winner of an iPad. The prize was awarded to show appreciation for Young Leaders who recognize the need for dialogue with elected officials.
Musser wins top crop adviser award John Musser, a crop adviser from Freeport in Stephenson County, was named the 2012 Illinois Certified Crop Adviser Award winner at the Illinois Farm Bureau annual meeting last week in Chicago. The Certified Crop Adviser Award is designed to increase awareness that farmers and their crop advisers strive to make economically and environmentally sound cropping decisions. John Musser Through the Stephenson Service Co., Musser advises more than 100 farmers who grow a variety of crops. He has 21 years of experience as a certified crop specialist and has been a certified crop adviser for the last 18. Over the last four years, Musser has focused on helping farmers
improve total nitrogen management by using such practices as split applications. He helps farmers apply only the amount of nutrients their crops need and determine how to take credit for nutrients from manure applications. Musser serves as a resource within his company, and he helps new salesmen prepare for the certified crop adviser exam. He serves on the board of the Illinois Fertilizer and Chemical Association. Musser volunteers as a judge at 4H fairs in Stephenson and Jo Daviess counties. He also has volunteered as a judge at the Stephenson County Fair and helps local FFA members care for their crop plots each year. As the state’s crop adviser winner, Musser’s name has been submitted for the international award by the Illinois Certified Crop Adviser Board and IFB.
IAITC honors top volunteers Agriculture literacy leaders and volunteers with the Kane, Rock Island, and Sangamon County Farm Bureaus were named Illinois Agriculture in the Classroom (IAITC) volunteers of the year for 2012 at the Illinois Farm Bureau annual meeting last week in Chicago. The honorees were Warren and Marian Nesler and Jeff and Laurie Nesler of Kane County, Diane New of Rock Island County, and Randy and Toni Krone of Sangamon County. Twenty-nine years ago, Warren and Marian Nesler were part of a core volun-
Marian and Warren Nesler
teer group at Kane County Ag Days. Their volunteering efforts have been continued by their son and daughter-in-law, Jeff and Laurie. The Nesler family serves as a host farm family for Summer Ag Institute educator groups as they help explain agriculture to suburban teachers in their county. Jeff and Laurie also make classroom visits with the Kane County Ag Literacy SPROUTS program. FOR THE LAST 12 years, New has been active as a teacher, retired teacher, and AITC volunteer in Rock Island County. She helps with the Summer Ag
Institute and organized a new nutrition and agriculture station at the Rock Island AgXPerience. She chairs the Earth Week Fair booth. Through Earth Week, she has reached more Diane New than 15,000 individuals since 2004. Through AgXPerience, she has had contact with more than 7,500 students. RANDY AND TONI Krone were instrumental in building of the Sangamon County Agventure Barn in 2001. Since that time, every member of their family has volunteered to go to schools to help teach students with the touring barn. The family also demonstrates outstanding livestock care for the farm animals that tour with the barn each year. The Krones host teachers who attend
Toni and Randy Krone
Summer Ag Institutes as well as Day on the Farm events for local students. Together, the Krone family, including children Ethan and Ellie, have reached more than 400 teachers and 32,000 students.
Carroll County teacher wins IAITC top award A first grade teacher from Lanark in Carroll County was named the Illinois Agriculture Teacher of the Year by the Illinois Agriculture in the Classroom (IAITC). The award was presented during the Illinois Farm Bureau annual meeting last week in Chicago. Carl Erbsen teaches at Eastland ElemenCarl Erbsen tary, Lanark. Erbsen grew up on a dairy farm and uses his agricultural background to integrate agricultural topics into lessons in reading, math, and science. He also engages students in yearly projects in which they operate their own “farms.” The students use “farm bucks” for expenses, such as machinery, buildings, and animals. As part of the farm project,
animals are brought into the classroom. One of Erbsen’s projects is known as adopt-a-calf. The students learn about the importance of beef farming and about beef calf development through calf visits to the classroom. Erbsen will be the Illinois nominee for the National Excellence in Teaching Agriculture Award and will receive a trip to the 2013 National Agriculture in the Classroom conference in Minneapolis, Minn. The runner up was Cathy BrittsAxen, a middle school special education teacher at Central Middle School at Burlington in Kane County. She has integrated the importance of agriculture into lessons about food, clothing, and shelter. Other finalists were: Kelli Huneke, Lena, Stephenson County, and Mary Zumwalt, Altamont, Effingham County.
Saline member honored for legislative work Jim Haney, Harrisburg, a member of the Saline County Farm Bureau, was awarded an iPad for his legislative work on behalf of the Illinois Farm Bureau. The award was accepted on his behalf at last week’s IFB annual meeting in Chicago. Haney was selected Jim Haney from among eligible Farm Bureau members who responded to FB action requests between Sept. 1, 2011, and Aug. 1, 2012, and reported
their contacts as part of FB ACT (Farm Bureau Agricultural Contact Team). “It’s something that needs to be done,” Haney said of his phone calls to legislators. “When they hear from an individual farmer, it helps.” The farm bill topped his issues, and Haney discussed with lawmakers the importance of passing a new bill. In addition to working on national and state issues, Haney kept tabs on local issues by attending meetings of the Saline County government board and Harrisburg City Council. Haney farms near Harrisburg.
Page 11 Monday, December 10, 2012 FarmWeek
County Farm Bureaus recognized for outstanding program awards Thirty-two county Farm Bureau programs achieved the designation of “Most Outstanding Program” last week at the Illinois Farm Bureau annual meeting. Some of the winning programs already have been featured in FarmWeek or are the subject of upcoming features. The following report provides a brief synopsis of one award-winning program in each of the eight categories. The spokesmen, while integral to the projects reviewed here, are representative of what in many cases were numerous volunteers responsible for the program’s success.
AG LITERACY “Green Eggs & Agriculture” Kristine Hasewinkle, Lawrence County Volunteers in Lawrence County, including about 20 FFA students, used an innovative and fun way to teach the basics of agriculture to nearly 200 second grade students. A Dr. Seuss program was held in which different book titles by the popular children’s book author were the themes of five different learning stations. “They (the students) loved it and they got to do a lot of fun activities,” Hasewinkle said. Themes of some of the teaching staKristine Hasewinkle tions included “Green Eggs and Ham,” where students learned about the pork and poultry industry; “Mr. Brown Can Moo Can You?” where students learned about the dairy industry; and “The Cat in the Hat,” where students learned about the many different hats a farmer wears throughout the year. “I think it’s more and more important (to teach school children about agriculture) as we’re moving away from farm family situations,” Hasewinkle said. “I’m always surprised some of the comments I hear from students that we (in farming) think is common sense,” she continued. “(The students) need to know (about where their food comes from) so they can be knowledgeable consumers.” Students at the event also learned about water quality, conservation, and how and why farmers plant crops.
COMMODITIES & MARKETING “Local Foods Assessment” Mary McCann, McHenry County The McHenry County Farm Bureau established a critical link between farmers and consumers by conducting an extensive assessment of farms, along with restaurants and schools, to locate food needs and food production sources in the county. Volunteers also hoped to provide more publicity for ag conservation efforts and promote farmland preservation. “I think it was a good exercise to bring into focus the impact of different aspects of agriculture in McHenry County,” Mary McCann McCann said. “Most people just think of corn and soybeans, but there also is a growing interest in local foods, visiting farms, (and other aspects of ag).” The assessment found about 50 venues available in the county for people to visit farms, including a number of apple orchards, you-pick berry farms, pumpkin patches, and Christmas tree farms. Volunteers on the project also inventoried all growers who have produce available and restaurant operators seeking locally grown food. “There’s a lot of interest in local foods,” McCann said. “(The assessment) has been very helpful to awaken people to economic development going on in the county. There’s an awareness and interest out there that would support additional businesses.” The assessment will be used to work with regulatory bodies and to aid local farmers in their business decisions.
HEALTH & SAFETY “RES-Q-TUBE Donation and Training” Don Duvall, White County
A scary situation last harvest gave the White County Farm Bureau Foundation added incentive to initiate a fundraising drive to purchase safety equipment. A farmer in the county became engulfed in grain inside a bin. Fortunately, rescuers got him out alive, but the effort took a long time, according to Duvall. “Our board recognized that it’s too common that this
type of stuff happens,” Duvall said. “Our board thought this was a worthwhile project.” The White County FB Foundation subsequently raised $18,600 and purchased GSI RES-Q-Tubes for all the fire departments in the county. GSI and a local grain bin firm, Zurliene Enterprises, contributed matching funds so the project had a value of more than Don Duvall $35,000. The White County FB also used some of the funds for a training program. RES-Q-Tubes are used to protect a victim in an engulfment situation, allowing rescuers to vacuum out the grain and hoist the victim to safety. “There was overwhelming community support for this project,” Duvall said. “Most of our fire departments are volunteer and don’t have the funds to buy a $4,000 piece of equipment. “It’s like insurance,” he added. “You hope you never have to use it, but it’s there if you need it.”
LEGISLATIVE/POLITICAL PROCESS “County Group to Washington, D.C.” Jeff Schone, Scott County The Scott County Farm Bureau last spring planned, organized, and funded a three-day leadership trip to Washington, D.C. The trip not only provided an opportunity for farmers to voice concerns to lawmakers and regulators, it also helped Farm Bureau members learn more about the political process. “It was a good experience,” Schone said. “Once members get out there and see how D.C. works, they’re more likely to become more involved.” Jeff Schone Schone noted that since the Scott County FB started organizing trips to Washington, involvement in FB action alerts has increased countywide. Leadership trips also serve as good development opportunities for county Farm Bureau board members, Schone said. “I feel it’s a good program. I’m really thankful our membership allows us to do this,” he said. “A lot of good comes back (from the trip) to help us back home.” Schone noted one particular situation in which a Scott County board member discussed a tax issue with a congressman. The congressman subsequently introduced tax parity legislation.
COMMUNICATION & PROMOTION “IFF Local Farm Tour” Terry Lieb, Piatt County The Piatt County Farm Bureau hosted local farm visits for area mothers and their children to allow them to ask questions about farming and food production. The program was modeled after IFB’s Illinois Farm Families (IFF) program, which links urban and suburban moms with production agriculture. “Monticello, which is situated between Decatur and Champaign, kind of has become a bedroom community. We have a lot of people moving into the area who Terry Lieb are not familiar with agriculture,” Lieb said. “So we put this together based off the IFF program.” The first farm tour for the Piatt County moms was a local dairy that milks 3,200 cows per day. Some of the participants were interviewed by a local radio broadcaster during the trip. Reaction to the program has been extremely positive, according to Lieb. “It’s a great program,” he said. “(The participants) didn’t realize how the whole (food production) process worked. Like many others today, they don’t know where their food comes from.” Lieb said the Piatt County FB hopes to continue the pro-
gram and possibly expand it in the future.
LOCAL AFFAIRS “An Evening in the Country” Kirk Liefer, Randolph County Members of the Randolph County Farm Bureau meet each year with elected officials to discuss farm and other issues. This year the event was held on the Liefer farm so elected officials could learn more about farming to better understand the issues. “They (local elected officials) really appreciated it and enjoyed it. We had equipment and technology on display,” Liefer said. “It was a good opportunity to get to know each other and exchange ideas,” he Kirk Liefer continued. “And it gave our board a better understanding of who our elected officials are.” About 60 people attended the event, including 21 county officials. “We always get good crowds,” Liefer said. “Agriculture is a very large portion (of the economy) in Randolph County. (Officials) know that and understand it.” Rich Guebert Jr., IFB vice president, spoke at the event and provided an update on key issues affecting ag and new programs at IFB.
MEMBER RELATIONS “Young Farmer Exchange” Rachel Meinhart, Effingham County The Effingham County Young Leader Committee sent a group of young farmers to Champaign County to meet with young farmers there to network and exchange ideas. The group toured the University of Illinois dairy, held a roundtable discussion, and participated in a trivia night event. “This was our first year (participating in a young farmer exchange),” Meinhart said. “We wanted to see if farming practices they use (in Champaign County) can Rachel Meinhart benefit our farmers.” The young farmers also discussed ways to boost membership in Farm Bureau and participation in Young Leaders. “We’re trying to get them (young farmers) more and more involved with Farm Bureau,” Meinhart said. “They had discussions about how to boost membership.” Young Leaders in Effingham County are interested in doing another young farmer exchange. “It was excellent,” Meinhart said. “We definitely want to do it again.”
POLICY DEVELOPMENT “M Member Surveys” Jason Balding, Edwards County The Edwards County Farm Bureau surveyed all of its M members to help formulate policy, generate ideas, and to connect with members. This year the survey focused on the tax code, farm bill, grain grading, and local economic development. “The purpose is we’re a grassroots organization, and this is where it begins,” Balding said. “We want to make sure we know what membership wants.” Nearly half of members receiving the 31-questions survey completed and Jason Balding returned it. Respondents indicated they believe U.S. and Illinois tax codes should be reformed, FB made the right decision prioritizing crop insurance over direct payments for the 2012 farm bill, and elevators should update the grain grading system. Edwards County FB gave all members who completed the survey a $5 discount on their membership dues. “We want members to know we’re there and appreciate what they think,” Balding said. “Member involvement is everything.”
FarmWeek Page 12 Monday, December 10, 2012
Page 13 Monday, December 10, 2012 FarmWeek
YOUNG LEADERs
Young Leaders: Farm Bureau plays key role in ag education BY DANIEL GRANT FarmWeek
Interest in ag education has increased in recent years as a number of schools started or expanded ag programs. But there still are many missed opportunities to teach children about agriculture. Illinois Farm Bureau should play a key role in expanding ag education and taking advantage of those opportunities, according to Illinois Farm Bureau Young Leaders. The question of how Farm Bureau should play a role to ensure the viability of quality agricultural education programs within Illinois schools was discussed by Young Leaders Jesse Faber (Livingston County), Ann Larson (DeKalb County), Doug Kirk (Vermilion County), and Caleb May (Richland County) during the finals of the Young Leaders Discussion Meet last week at the IFB annual meeting in Chicago. “I’m a product of ag education,”
said Larson, winner of the Discussion Meet, who will graduate this month from the University of Wisconsin-Platteville with a degree in ag business. “I wouldn’t be where I am today without ag education. “Farm Bureau plays a role by letting legislators and school boards know this (the importance of ag education),” she noted. Faber, an ag teacher in Pontiac, said there currently are 315 high school ag programs in the state, 11 of which are either new or were restarted in the past year. Farm Bureau members can play a role in establishing new programs or expanding current ones by meeting with students and teachers to promote the benefits of ag education, he said. “We need to make sure we focus at the local level,” Faber said. “Farm Bureau should have meetings with teachers. There are a number of
Two Illinois students to compete in AFBF Collegiate Discussion Meet Jim Tobin, Farmer City (DeWitt County), and Jacob Meisner, Piasa (Macoupin County), will represent Illinois in the Collegiate Discussion Meet during the American Jim Tobin Farm Bureau Federation Young Farmers & Ranchers (AFBF YF&R) Conference in Phoenix, Ariz. Tobin and Meisner will compete against students from across the nation in an attempt to win scholarships. Tobin is a freshman at Southern Illinois University, Carbondale. He is pursuing two degrees, one in general agriculture and another in political science. Meisner is a freshman at the University of Illinois. He is studying agriculture education.
Tobin won the Illinois Farm Bureau Young Leader State Collegiate Discussion Meet; Meisner placed second. The contest was held Jacob Meisner Nov. 9 during the Illinois Post-Secondary Agriculture Student Fall Conference at Spoon River College, Canton. Each student received an expense-paid trip to last week’s Illinois Farm Bureau annual meeting in Chicago, $100 cash, and a plaque. They will receive expensepaid trips to the AFBF YF&R Conference. The IFB Young Leader Committee sponsors the Collegiate Discussion Meet for college students pursuing an agricultural degree.
A statewide project is finding a range of nitrogen levels remaining in the soil after the season’s drought and low corn yields, reported Emerson Nafziger, University of Illinois crop scientist. The projEmerson Nafziger ect was funded by the Council for Best Management Practices (CBMP) and coordinated by the U of I. The effort is tied
to the Keep it for the Crop (KIC) campaign. “November was relatively dry in Illinois, and there have been few reports of tile lines running,” Nafziger said. Since soils have cooled, the nitrogen — mostly in the nitrate form — that remains in fields most likely will stay in the soil until tile lines run, he added. Project participants were asked to take samples from less than a foot and 1-foot levels and also samples from the 1- to 2-foot level at a single site.
openings being filled by non-ag education teachers because there is a shortage.” Kirk agreed Farm Bureau members should actively promote ag education in their communities. He believes the focus should start with students. “It (the goal of increasing ag education opportunities) starts with student demand,” Kirk said. “Farm Bureau has to tell the story of opportunities in ag and open peoples’ eyes to the opportunities.” May believes IFB should look for ways to boost funding to various ag education programs, such as Ag in the Classroom, 4-H, and FFA, that reach of variety of students. “Another way Farm Bureau could get involved is through the local food movement,” he said. Students helping at community gardens “could learn about fertilization and weed management.” Larson said there were 28,657 stu-
dents in ag programs in the state last year. She said real-world experiences are vital to help keep those students interested in the field. “We need to show (students) the economic benefits of an ag career,” she said. “Without ag education, they’re missing an opportunity in an industry that is diverse and right now an economic powerhouse in our nation.” Philip Nelson, IFB president, noted in his address at the IFB annual meeting that about 24 percent of the gross domestic product in the nation is related to agriculture. Larson and May also said IFB should place more emphasis on ag education at the junior high level. “We focus a lot on grade school students and high school students, but there is a big gap in the middle — junior high students — who don’t have (ag education) programs available to them,” Larson added.
IFB YOUNG LEADER COMMITTEE
Brent Pollard, back left, of Winnebago County was selected chairman of the Illinois Farm Bureau Young Leader Committee at last week’s annual meeting in Chicago. He will be assisted in 2013 by, front row, left to right, Jared Finegan (Ford-Iroquois County), vice chairman; Matt Rush (Wayne County), secretary; back row, left to right from Pollard, Dale Pitstick (Kane County), chairman of the Governmental Affairs Subcommittee; Matthew Starr (Hancock County), chairman of the Achievement Subcommittee; and John Klemm (DeWitt County), chairman of the Education and Recruitment Subcommittee. (Photo by Ken Kashian)
Soil monitoring project reports variable nitrogen levels To date, samples from 130 sites have been tested for nitrate and ammonium levels. Nearly all of the samples came from low-yielding cornfields that were planted in corn in 2012. The average nitrate-N levels in the top foot of soil measured 26, 16, and 18 parts per million (ppm) in Northern, Central, and Southern Illinois, respectively. Overall nitrate-N levels ranged from near zero to 89 ppm. The 89-ppm sample came from a Northern Illi-
nois cornfield that yielded 175 bushels per acre. It was the only field found with a value higher than 50 ppm. The average nitrate-N levels in samples from the 12to 24-inch depth were 16, 12, and 18 ppm in Northern, Central, and Southern Illinois, respectively. While the sampled fields probably do not accurately represent all Illinois fields, Nafziger pointed out that 12 million acres of corn with 136 pounds of nitrogen in the top 2 feet indicates there is roughly 800,000 tons of
nitrogen that is able to move and be taken up by plants. A few fields with very high nitrogen rates had low yields. Researchers did not find a strong connection between the amount of nitrogen applied and the amount remaining in the fall. And predictions on the amount of remaining nitrogen were not proven based a calculation that incorporated the yield and the amount of fertilizer applied. “This shows how complex the nitrogen interactions are in the soil,” Nafziger said.
FarmWeek Page 14 Monday, December 10, 2012
ANNUAl MEETING RECORD-SETTING AUCTION
Study: Regulations cost farmers about $33 per acre in Illinois BY DANIEL GRANT FarmWeek
State Sen. John Sullivan (D-Rushville) seeks bids for donated items sold to raise money for the IAA Foundation and ag literacy. A record $20,835 was raised at the auction during the Illinois Farm Bureau annual meeting last week. Sullivan has volunteered his auctioneer services at the meeting for the past several years. (Photo by Ken Kashian)
Farmers often talk about the burden that excessive regulations place on their operations. But that burden has been hard to quantify in a way most lawmakers, regulators, and consumers can understand. The Illinois Corn Growers Association (ICGA) and Marketing Board responded by commissioning a study that placed actual cost estimates on the implementation of certain regulations. The estimates, announced last week at the Illinois Farm Bureau annual meeting in Chicago, showed crop farmers statewide spend about $713 million per year on regulatory compliance. “It’s something we’re very concerned about,” said Paul Taylor, a farmer from Esmond and president of ICGA. “So we decided to try to quantify what those costs are so when we go to Washington we have an authoritative voice to talk about it.” Illinois farmers this year experienced production costs that averaged $727 per acre for corn and $531 per acre for soybeans. Total production costs in the state were $13.9 billion. The cost to comply with environmental regulations totaled about $33 per acre, which was Paul Taylor about 5 percent of total production costs, according to Mark Grenchik, an economic and financial consultant who led the study. “It’s a groundbreaking kind of study. Everybody talks about the burdens (of regulations) but can’t put a number to it,” Grenchik said. “We feel comfortable with these estimates and hope it will help start a dialogue (with lawmakers and regulators).” A breakdown of the costs of regulatory compliance for crop farmers is as follows: $23 per acre for time and money spent on crop production; $6 per acre for Tier 4 vehicle compliance, and $4 per acre for fuel and chemical storage, Grenchik reported.
‘Everybody talks about the burdens (of regulations) but can’t put a number to it. We feel comfortable with these estimates and hope it will help start a dialogue.’ — Mark Grenchik Economic and financial consultant
A survey of Farm Bureau members at the IFB annual meeting found that farmers believe regulations represent the greatest threat to their long-term profitability. It was the second consecutive year regulations were cited as the No. 1 threat to profitability by farmers who participated in the IFB survey. “In the past three years, regulations have tripled,” IFB President Philip Nelson said in his annual address at the annual meeting. “We need common sense regulatory framework now more than ever.” Farmers’ reactions in the ICGA/ICMB study echoed Nelson’s sentiments. Farmers in the study stressed that regulations should be practical. They also cited a need for a cost/benefit analysis of regulations, pointed out the added costs of overlapping licenses for various farming practices, and called for increased education on the issue. Some farmers have changed their operations rather than deal with increased regulations. Some no longer store or mix chemicals on their farms while others are hanging on to older equipment, rather than upgrading, to avoid increased costs of Tier 4 regulations on newer equipment, Grenchik reported. Meanwhile, many farmers in the study indicated they feel they are not being credited for ways they currently improve the environment through practices such as reduced tillage, waterway management, erosion control, and implementation of nutrient management plans. Grenchik believes the ICGA/ICMB study can be used as a stepping stone for a more expansive study on regulations as they affect the livestock industry and cooperatives.
Page 15 Monday, December 10, 2012 FarmWeek
outlook 2013 IFB survey results
Drought not expected to have major impact on 2013 plans
BY DANIEL GRANT FarmWeek
The majority of crops are out of the ground this year, but farmers still are concerned about the drought. Subsoil moisture through the end of November across the state was rated 61 percent short or very short, 37 percent adequate, and just 2 percent surplus. “We’ve replenished (the soils) a little bit in Western Illinois, but when you look at the ground profile, we’re extremely dry,” said Joe Zumwalt, a farmer from Warsaw (Hancock County) and a FarmWeek Cropwatcher. “It’s going to take significant rain or snowfall to replenish the soil.” The winter wheat crop in Illinois looks good heading into winter, but things could change without significant moisture, particularly snowcover to limit winterkill.
The wheat crop a week ago was rated 69 percent good to excellent, 26 percent fair, and just 5 percent poor. “There was more wheat seeded in Northern Illinois than there has been in a long time,” said Bernie Walsh, a farmer and Cropwatcher from Durand (Winnebago County). “But it’s at risk with no snowcover. I think farmers are getting more concerned every week that goes by without moisture.” Most farmers at this point are not planning major changes on their farms next year in response to the devastating drought and lingering concerns this year.
A survey of Farm Bureau members at the IFB annual meeting in Chicago found 66 percent of the 399 respondents plan to plant the same amount of corn acreage in 2013 as last year. Eighteen percent indicated they will plant more corn, while 16 percent plan to plant fewer acres. “I think most people are not going to let one year change their rotation,” said Ken Taake, a farmer and Cropwatcher from Ullin (Pulaski County) Jason Balding, a farmer from Albion and president of the Edwards County Farm Bureau, also believes
most farmers will keep their crop rotations intact. However, more farmers in his area planted wheat to get a crop earlier in the growing season next year while the use of cover crops, such as turnips, radishes, and rye grass, has increased to improve soil fertility, he said. Meanwhile, the majority of livestock producers surveyed by IFB (64 percent) indicated they do not plan to expand their herds in the next five years due in part to lack of space and higher costs. Survey respondents also indicated regulations are the biggest threat to long-term
profitability, while the majority of respondents (81 percent) said a reduction in the estate tax exemption, from $5 million to $1 million, would create a liability for their heirs that would require the sale of assets. “Clearly, our members have concerns about their ability to continue to farm efficiently and, certainly, their concerns are not unfounded,” said Philip Nelson, IFB president. “These (survey) results are beneficial as we look to the future and try to ensure we’re addressing the issues that are most important to our members.”
State NRCS names new assistant conservationist Natural Resources Conservation Service (NRCS) State Conservationist Ivan Dozier recently named Eric Gerth of LeRoy as the new assistant state conservationist for financial assistance programs in Illinois. Gerth will have statewide responsibility for implementing farm bill programs, including the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Wildlife Habitat Incentives Program (WHIP), and others. He will be based in the state office in Champaign. Gerth grew up on a grain farm near Chatsworth, where his family still farms. He earned bachelor degrees in agribusiness and agronomy from Illinois State University, Normal. In 1996, he started his NRCS career as the Macoupin County soil conservationist, becoming the Christian County district conservationist three years later. He served as the district conservationist in Livingston and Ford counties from 2004 to 2010. Most recently, Gerth served as the resource conservationist on the farm bill programs staff at the NRCS state office. “In his new role, I know he’ll help us put more conservation solutions on the ground across the state,” Dozier said of Gerth.
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FarmWeek Page 16 Monday, December 10, 2012
government
Focus shifts to lame duck session as issues remain after veto session BY KAY SHIPMAN FarmWeek
State budget woes, unfunded pension liability, and legislative initiatives await the lame duck legislative session in early January. Lawmakers concluded the second half of the fall veto session last week after taking little legislative action. On Wednesday, more than 20 House members offered a new proposal to address the $94.6 billion unfunded liability of the state employee and teacher pension system. Rep. Elaine Nekritz (DNorthbrook) said the state
needs a solution that is sustainable and affordable. “The greater good must be our goal,” she said during a news conference. The new proposal would reduce annual cost-of-living increases for current retirees and would raise the retirement age. The cost of future teacher and educator pensions would be shifted over time to school districts, community colleges, and universities. Nekritz said negotiations will continue on the proposal, and feedback is being sought. The Senate will return Jan. 2; the House the next day.
Both chambers are scheduled to be in session until the Jan. 9 inauguration. Lawmakers failed to override Gov. Pat Quinn’s veto of funding for the Illinois Department of Agriculture’s animal disease laboratory in Centralia, the Illinois Youth Center in Murphysboro, the Dwight Correctional Center, and the Illinois Youth Center in Joliet. As a result, the animal disease lab is scheduled to close Dec. 31. It had remained open to provide drought-related crop testing. The correction facilities also will close.
IDNR reports 99,000-plus deer harvested Firearm deer hunters in Illinois shot an estimated 99,324 deer during the seven-day season on Nov. 16-18 and Nov. 29-Dec. 2, according to the Illinois Department of Natural Resources (IDNR). This compares with 97,820 deer taken during the 2011 firearm season. The Nov. 29-Dec. 2 season total was 27,213, compared with the 31,259 during the same period last year. The first part of the season this year totaled 72,111, compared with 66,501 in 2011. “This year, conditions were much more
favorable during the first season and less so during the second, but I think we’re right on track with our harvest in most areas,” said Paul Shelton, IDNR forest wildlife program manager. The top five counties for deer over the sevenday firearm season were Pike (3,068), Fulton (2,815), Adams (2,534), Jo Daviess (2,534), and Randolph (2,221). The archery deer season will continue through Jan. 20.
Be sure nurse tanks, implement of husbandry visible to drivers Pulling anhydrous nurse tanks and other implements of husbandry can be extremely dangerous after sunset or when daytime conditions require headlights. Most implements of husbandry are not equipped with any type of lights, making it more difficult for other drivers to see equipment at night or in poor visibility conditions. Implements of husbandry always are required to have a slow moving vehicle emblem attached, but the Illinois Vehicle Code also states a yellow/amber, flashing/rotating light must be used when a vehicle is towing implements of husbandry after dark or during daylight when lights are required, such as in heavy fog. An amber rotating/flashing light must be attached to the rear-most vehicle in tow. Two are required on newer implements. Also, if an implement of husbandry blocks the taillights of the towing vehicle while in tow — or if the implement was manufactured in 2003 or later — the towed implement must display two taillights. To do that, a light bar displaying taillights must be attached to the rear-most vehicle in tow.
November abnormally dry; winter forecast neutral BY DANIEL GRANT FarmWeek
Hopes the drought would disappear after above-normal rainfall in September and October may have been a mirage as Mother Nature basically turned the spigot off again last month. Illinois in November received an average of just 1.26 inches of precipitation, which is about one-third of normal, according to Jim Angel, state climatologist with the Illinois State Water Survey. In fact, average precipitation last month was 2.21 inches below normal, which made it the 17th driest November on record since 1895. “We had some great weather (to close the month) with lots of sun and mild temperatures,” Angel said. “But there wasn’t much rainfall. Usually, November is one of our wetter months.” Illinois from January through November received an average of 27.6 inches of precipitation, which is about 10 inches below normal and the 12th driest on record. “We’ve still got a long way to go (to minimize the drought) in many areas,” Angel said. Last week about 81 percent of the area in the Missouri and Upper Mississippi River watersheds was in some form of drought, Angel noted. “It’s no wonder there are problems with water flow on the (Mississippi) river,” he said. “When that large of an area is dry, it will be awhile before the water is flowing (at normal capacity) again.” The average temperature last month was 40.8 degrees, 1.1 degrees below normal. But the statewide average temperature from January through November was the second warmest on record at 57.3 degrees. The mild stretch could continue as the forecast this month calls for an increased chance of above-normal temperatures and equal chances of above- and below-normal precipitation. The forecast this month in Eastern Illinois was a little more bullish on precipitation chances. Overall, the National Weather Service winter forecast for Illinois is neutral, with equal chances of above- and below-normal conditions. “The big thing right now is there is no La Nina or El Nino (in effect) to push us one way or another,” Angel said. This month got off to an unusually warm start, with high temperatures above 70 degrees in some areas early last week. But the mild temperatures of a week ago won’t necessarily set the stage for winter, Angel added.
Page 17 Monday, December 10, 2012 FarmWeek
fROM ThE COUNTIES ANNUAL MEETING CLASSROOM VISIT
C
OOK — Members may purchase reduced-price tickets to the Chicago Wolves vs. the Abbotsford Heat game at the Allstate Arena, Rosemont. Contact Art Antram at 724-1652 for tickets. DGAR — Farm Bureau will sponsor an Ameren Transmission’s Project meeting at 1 p.m. Monday (today) at the Farm Bureau office. Illinois Farm Bureau staff will discuss issues dealing with the utility company and how landowners will be affected by the high-voltage transmission project. Call the Farm Bureau office at 217-465-8511 for more information. EE — Members have received ballots for election of the Lee County Farm Bureau Board of Directors. A proxy may be used for members unable to attend the annual meeting on Jan. 10. Deadline to return ballots and proxies to the Farm Bureau office is Friday. • The Young Leaders will play Walley Ball at 5 p.m. Sunday, Dec. 30, at Plum Hollow, Dixon. Dinner will follow. Members between the ages of 18 and 35 are invited. Call the Farm Bureau office at 857-
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Brown County Farm Bureau Young Leaders Tom and Sara Luthy took time while attending the Illinois Farm Bureau annual meeting last week to visit the county Farm Bureau’s adopted classroom, Niki Liakopoulos’ third grade class at Portage Park Elementary School. The Luthys, shown helping with a soybean project, read several books about soybeans to the students and gave each a soybean Ag Mag. They informed the students of all the items they consume that contain some form of soy. (Photo Courtesy of Brown County Farm Bureau)
IFB announces winners of Commodity Challenge BY DANIEL GRANT FarmWeek
Illinois Farm Bureau last week revealed winners of the 2012 Commodity Challenge and announced plans to expand the program in 2013. The Commodity Challenge is an online farm marketing game that offers IFB members a fun way to improve their commodity marketing and risk management skills. Participants trade commodities on the cash, futures, and options markets in a simulated game. No money is exchanged. The game initially was for IFB Young Leaders, but this year it was opened to all IFB members in various categories. “The main intent is to help producers and marketers improve their grain marketing skills,” said Doug Yoder, IFB senior director of affiliate and risk management. “They can practice using tools at real-time prices and with real-time bids.” The top three finishers in each category this year were as follows. Open division — Craig Gehrig (Peoria County), Don Meyer (Lee County), and Terry Sturgell (Edgar County); Women’s division — Cassandra DeJaynes (Hancock County), Kathy Bloomstrand (Cook County), and Nancy Dunn (Macon County); Young Leaders division — Brad Zwilling (Champaign County), Matthew Lynch (Edwards County), and James Lurkins (Fayette County). The prizes awarded by IFB this year were a new iPad for first place, a $250 Visa gift card for second place, and a $100 gift card for third place. “This year, the contest was a success,” Yoder said. “It was the first statewide contest (open to all members) and it generated good interest and participation. “Next year, the prizes basically will be doubled,” he continued. “So, hopefully, it will draw even more interest.” IFB will partner with the CME Group for the 2013 contest. The prizes next year will be gift cards totaling $1,000 for first place, $500 for second place, and $250 for third place. Details about how and when IFB members may sign up for the 2013 Commodity Challenge will be available in coming weeks. IFB members who are interested or have questions about the Commodity Challenge may contact Doug Yoder at 309-557-2993 or email him at yoder@ilfb.org.
3531 or email leecfbcomcast.net by Thursday, Dec. 27, for reservations or more information. EORIA — Orders for Florida oranges, grapefruit, tangelos, and Terri Lynn nuts may be picked up Wednesday at the Farm Bureau auditorium. • The Young Leaders will meet at 6:30 p.m. Thursday, Dec. 20, at the 1st Farm Credit Services office, Kickapoo. A barbecue meal will be served. ERMILION — The District 12 Young Leaders Committee will sponsor its annual Illini Farm Toy Show Jan. 4-6 at the Holiday Inn and Convention Center, Urbana. Dates and times are Friday, 5 to 9 p.m.; Saturday, 9 a.m. to 5 p.m.; and Sunday, 9 a.m. to 2 p.m. Cost is $3 for adults, $2 for children ages 612; and under 6, free. A live auction will be at 10:30 a.m. Saturday. Admission on Sunday is free with a free-will donation to the local Ag in the Classroom programs. ABASH — Stop by the Farm Bureau office from 11 a.m. to 2 p.m. Thursday for the holiday open house.
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FarmWeek Page 18 Monday, December 10, 2012
profitability
U.S. ag exports, imports projected to soar to record highs BY DANIEL GRANT FarmWeek
The fact that the value of U.S. ag exports for fiscal year 2013 is projected to reach a record $145 billion would seem to be a cause for celebration among farmers. But there are concerns as corn exports have declined, competition has intensified, and shipping issues on the Mississippi River threaten to cause delays and raise transportation costs. Soybean and oilseed exports are projected to jump $3.3 billion for fiscal year 2013 as the
U.S. continues to feed China’s growing appetite for beans until South American farmers harvest their crop this spring. Shipments of soy oil during the first seven weeks of the marketing year were more than 3.5 times larger than a year ago, Darrel Good, University of Illinois Darrel Good ag economist, reported. “The large early export pace
Russia permanent normal trade relations bill heads to president Senate passage of permanent normal trade relations (PNTR) with Russia will “ensure the U.S. benefits from Russia’s accession to the World Trade Organization (WTO) and remains competitive in that market,” American Farm Bureau Federation President Bob Stallman said last week. Following the long-awaited Senate vote — the House recently approved the measure — Stallman maintained farmers “will have more certain and predictable market access” as a result of Russia’s commitment not to raise tariffs on products above WTO-negotiated rates and to apply global food safety standards “in a uniform and transparent manner.” “Russia’s membership in the WTO will provide significant commercial opportunities for U.S. agriculture, including increased sales of poultry, pork, and beef,” he said. The Senate voted 92-4 for the measure. President Obama was expected to sign the bill shortly. The Senate Finance Committee, which has jurisdiction over trade issues, has said U.S. exports to Russia total $9 billion a year and are expected to double within five years due to changed trading status. Russia is the world’s seventh-largest economy.
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.
Range Per Head $32.25-58.18 n/a
Weighted Ave. Price $43.60 n/a
This Week Last Week 104,354 85,296 *Eastern Corn Belt prices picked up at seller’s farm Receipts
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $82.00 $80.45 $60.68 $59.53
Change 1.55 1.15
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 128.11 127.00
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 This week 146.53 146.24 0.29
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-162 lbs. for 89.48-115 $/cwt. (wtd. ave. 104.98)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 11-29-12 51.1 14.2 9.6 11-22-12 46.6 8.1 16.1 Last year 32.1 14.6 38.9 Season total 600.3 461.0 208.3 Previous season total 429.1 533.6 401.0 USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
is supported by the small South American soybean harvest earlier this year and will likely slow after the first of the year as confidence in the 2013 South American crop increases,” Good said. Competition from other countries is projected to put pressure on all U.S. ag exports. Meanwhile, dwindling supplies of corn and meat, and subsequent higher prices, could be another obstacle for U.S. ag exports. Corn export inspections during the first 13 weeks of the marketing year totaled 208 million bushels, down 48 percent from a year ago, Good reported. “The volume is way down, partly because we don’t have it and partly because of (high) prices,” Wendell Shauman, past chairman of the U.S. Wendell Shauman Grains Council, former IFB board member, and Warren County farmer told FarmWeek. “Argentina and the Ukraine are cheaper (for corn) right now. We’re losing
some markets, hopefully shortterm.” USDA in its ag trade outlook projected grain and feed exports for the 2013 fiscal year would decline by $1.9 billion, mostly due to lower corn exports. The forecast for livestock, poultry, and dairy slipped $100 million due to lower poultry, beef, and cattle exports. Shauman said the recordhigh export forecast largely is the result of higher prices for most commodities. U.S. ag imports also are projected to set a record ($115 billion) in fiscal year 2013. The
U.S. ag industry still is on pace to produce a trade surplus of $30 billion, down slightly from $32.4 billion in fiscal year 2012. And the trend of running ag trade surpluses could continue in the U.S. due to growth of the world’s population, particularly its middle class in countries such as China. “There will be a lot of opportunities,” said Shauman, who discussed the export outlook last week at the IFB annual meeting. “But we’ve also got increasing competition.”
Fuel storage tank filtration critical have implemented engines with two-micron Have you ever had that untimely breakdown, final fuel filters, at an average cost of $120 per filter. The average retail cost of a two-micron the one when you have 10 acres left and your FS Bio-Power storage tank filter is $30, saving fuel filter plugs up? Did you know that you you on the average 75 percent. Proper twocould have prevented that breakdown at your fuel storage micron filtration also will reduce the chances of the untimely breakdown mentioned before. tank? On top of the 75 percent savings, the FS Tank filters are one of the Bio-Power filter is considered “progressive densingle most important — yet sity.” The progressive density FS Bio-Power filvastly overlooked — items in ter is like having two filters in one. There are the equipment industry. two medias inside the filter, the first being 10 With the demand for cleanmicron and the second being two micron. er, more efficient engines This design reduces the gallons per minute comes the demand for smaller Matt Thomas loss that you would have with a two-filter sysmicron filtration. The 2013 tem. Also, the progressive density filter is line of FS Bio-Power filters provides you with impregnated with hydrosorb, which will remove proper filtration that matches your equipment water trapped inside the fuel tank. filter. Removing this free water will reduce your You might be asking yourself: “Why do I chances of rust need to filter my and microbial fuel, isn’t the growth issues fuel delivered to ‘With the demand for cleaner, more in your fuel my tanks already efficient engines comes the demand storage tank. clean?” In short, that for smaller micron filtration. The 2013 This provides you with propanswer is yes, line of FS Bio-Power filters provides er fuel filtration but 100 percent you with proper filtration that matches to match your clean fuel isn’t equipment filalways put into a your equipment filter.’ ter, while 100 percent reducing the clean fuel tank. frequency of Naturally, replacing the storage tank filter. over time rust, dirt, and corrosion occur, so Proper filtration at the storage tank may have once fuel is placed in the tank, it no longer is an initial start-up cost, but your return on 100 percent clean. So while the fuel is clean when delivered, it can and will become contami- investment will far outweigh the cost. nated over time. Therefore, filtering the fuel at Matt Thomas is GROWMARK’s facility equipthe storage tank is much like polishing your ment product manager. His email address is shoes before wearing them. mthomas@growmark.com. Industry-leading equipment manufacturers BY MATT THOMAS
Page 19 Monday, December 10, 2012
PROFITABILITY Corn Strategy
CASH STRATEGIST
Cents per bu.
ü2012 crop: March corn futures slipped into a sideways pattern because of a lack of fundamental backing. Make needed catch-up sales with March futures trading near $7.55. ü2013 crop: December 2013 remains above the $6.40 resistance level. Use current price levels to make catch-up sales. We could add another increment at any time; check the Hotline frequently. vFundamentals: Despite expectations for a pickup in export demand, it has yet to materialize. Business has been extremely slow, and it does not look as though it will change anytime soon. However, the combination of decent domestic demand and tight inventories is helping to stifle downside momentum. Corn will continue to look toward wheat and soybeans for near-term direction.
Soybean Strategy
Export sales remain strong for beans Soybean sales have been good, as demand out of China has been aggressive. If business remains intact, sales are expected to meet USDA’s forecast and possibly exceed it. The most recent weekly export sales number was strong at 42.18 million bushels. In addition, soy meal sales were better than expected. This demand is expected to remain solid until South American farmers start harvesting their crops early next year.
Wheat sales have been sluggish, as U.S. prices are struggling to compete in the international market. If the trend continues, it is highly unlikely USDA’s forecast will be achieved. However, there is still some hope that business could pickup in the near-term, as Black Sea supplies are tight following less-thandesirable growing conditions. Corn exports sales continue to slip and are not showing any sign of picking up, as the most recent weekly export sales were pegged at a disappointing 2.1 million bushels vs. trade expectations for 11.7 million to 19.5 million bushels. However, domestic demand is holding together and is helping to keep a floor under the market.
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ü2012 crop: The positive short-term trend is expected to remain intact, as demand for U.S. soybeans is not showing any signs of slipping. Continue to target a rally to $14.97 on January 2013 futures to make catchup sales. We could add a sale at that level; check the Hotline if prices get close to that level. ü2013 crop: Use prices above $13.30 on November 2013 futures for catch-up sales. We are considering adding another increment on strength, but want to be patient while the picture continues to develop. Check the Hotline occasionally for an update. vFundamentals: Demand for soybeans continues to paint a positive near-term picture. Recently weekly export sales exceeded trade expectations coming in at 1,143,700 metric tons (42.2 million bushels). In addition, scattered weather issues persist in South America, particularly in Argentina where excess moisture continues to result
in planting delays.
Wheat Strategy ü2012 crop: The midNovember low still looks like it was a short-term bottom. The trend has turned into a choppy sideways pattern, but should find support at the $8.50 level. Use a rally to $8.68 on March futures for catch-up sales. ü2013 crop: Make catchup sales when Chicago July futures are trading above $8.71. Check the Hotline frequently; we could add a sale at any time. vFundamentals: The
wheat market has taken on a negative tone over the past week, as export business remains slow. This was solidified with weekly export sales at 353,100 metric tons (12.9 million bushels), which was at the low end of trade expectations. However, the threat of further weakness should be minimal, as world supplies continue to tighten and the U.S. Southern Plains remains extremely dry. The current seven- to 10-day forecast is offering little hope for moisture.
FarmWeek Page 20 Monday, December 10, 2012
pERspEcTIvEs
Rural development landscape today is fast changing The landscape of state rural development has been changing rapidly. It is an often under-recognized policy area — even in rural states. In urbanized states, rural may virtually disappear from the policy arena. The message from a recent informal meeting of rural policy experts is clear. Rural advocates need to stress ruralurban connections clearly and firmly. Political and economic shifts affecting rural TIMOTHY areas have been dramatic. COLLINS Agriculture has changed and consolidated. Manufacturing, where it remains, is highly automated and far less labor intensive. Changes and declines in various economic sectors have had wider impacts. Yet, rural employment has suffered less in the current lackluster economy than in urban and suburban areas. Demographic shifts of population loss have left many rural areas grayer and perhaps poorer with shortages in skilled employment and increasingly difficult access to crucial services. Medical staff shortages in some areas are real. Food deserts (where grocery stores are far away) also are real, even in
the midst of agricultural plenty. Larger statewide, as well as local, political winds have buffeted rural communities. Increasingly concentrated urban influence in state legislatures dwarfs rural power in capitals. Rural citizens, increasingly alienated from government, are more suspicious of government and adamant in their opposition to taxes — federal, state, and local. In the gale force headwinds of resistance to change, it is fascinating to note that some states — conservative and liberal leaning alike — are creating and maintaining agencies to foster rural development. These states recognize the importance of rural-urban connections. In addition, social entrepreneurs nourish nonprofit organizations dedicated to keeping rural development out front. Some of these units operate on a shoestring, while others have relatively good budgets. They are always resourceconstrained because there is so much need for their work. Sometimes these organizations are anchored in regional universities. Sometimes they are in state government in the legislative or executive branches. Private nonprofits might work out of a more traditional workplace or a home office. These rural development leaders out
side of the land-grant university system are characterized by their dedication to rural life. Their smaller organizations tend to match their personalities and goals, even in a university setting. They may specialize or work on a variety of focus areas. Some conduct research, but with an applied bent. If associated with a university, teaching might be part of the operation. Many of these organizations engage in community development and technical assistance in communities and regions. They rely on collaborations with other agencies and like-minded advocates to jawbone governors, legislators, and citizens to recognize how important
Market, technology will help address our food challenges Every time I pick up a paper, I read about hungry people. Just to keep pace, we will have to double food production by 2050. If we don’t raise more food, millions will star ve. What are we going to do? OK. We do have a challenge. JOHN However, BLOCK this year, even with the serious drought, the planet will produce a record grain harvest of 2.4 billion tons. Also, there are millions of underutilized acres of land in Africa that at some point will be producing a lot more. Today, their yields aren’t even half what ours are. But with biotechnolog y and drought-resistant seeds, their yields can increase. We will find ways to ramp up production.
Yes, increasing production is one way to satisfy growing global demand. Another is to stop wasting so much food. According to the Natural Resources Defense Council, 40 percent of the food that is produced in the world is never eaten. It is wasted all along the food chain. In developing countries, more food is lost in the production and post-harvest process. In developed countries such as ours, more food is wasted closer to the consumer. How much food prepared at home is eventually thrown out? How many plates of food at the end of dinner end up in the garbage? I remember when I was a kid, my sisters and I were proud members of the “clean plate club.” My grandfather would remind us — “Don’t waste anything; children are starving in China.”
It also is a fact that we waste a lot of fruits and vegetables in the fields. Retail shoppers expect perfect products — all the same size, all the same color, etc. In the field, we know that all the tomatoes and all the apples are not going to be perfect. But if they are not perfect, they may be left behind. Here in the U.S., we waste half again as much food as we did back in 1970. Why? Because, food is cheaper today. We have a lot of it. If food cost a lot more, we wouldn’t waste as much. If food cost a lot more, we would find a way to grow more. The market works. John Block, former U.S. agriculture secretary and a hog farmer from Gilson in Knox County, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His email address is jblock@ofwlaw.com.
rural areas are to the larger economy. Rural policy efforts require thinking, research, communication, and collaborative action among stakeholders. Linking of theory, research, and action is nothing new. But the risky and uncertain climate today demands organizational agility and synthesizing creative ways of thinking and doing in complex and shifting conditions in areas often considered as low priorities. Timothy Collins is the assistant director of the Illinois Institute for Rural Affairs at Western Illinois University, Macomb. His email address is T-Collins@wiu.edu.
LETTER TO THE EDITOR
Online guide explains FSA farm loan process
Editor: The Farm Service Agency (FSA) is pleased to announce an online publication entitled “Your guide to FSA Farm Loans.” The guide is designed to serve as an informational tool and resource to help provide outreach and technical assistance to farmers and ranchers. Written in “plain language,” the guide provides information about FSA’s loans and loan servicing options. A list of additional resources is included. The guide is available online at {fsa.usda.gov/dafl}. I encourage you to download it and share it with the farmers and ranchers in your community who may require assistance in understanding FSA’s loan process. I also invite you to contact Mary Kirby, the public affairs and outreach specialist at the Illinois state FSA office in Springfield, to discuss partnering opportunities. Her telephone number is 217-241-6600, extension 227. Through effective tools and partnerships, together we can improve outreach efforts to successfully deliver program and services information to FSA’s customers. SCHERRIE GIAMANCO, state executive director Illinois FSA
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