Farmweek december 16 2013

IFB President Philip Nelson’s retiring address listed top 10 challenges he sees ahead for members...................3

High crop prices have cured high prices as farmers harvested abundant corn and soybean crops..........................13

A new farm bill will not take shape until next year as Congress approved a six-week extension..................................15

A service of

Guebert, Erickson elected to lead IFB Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, December 16, 2013

Two sections Volume 41, No. 49

people about agriculture,” said Erickson, a former American Soybean Association and Illinois Soybean Association president.

As president, Guebert serves as leader of the companies that comprise COUNTRY Financial, Illinois Agricultural Service Company and the Illinois Agricultural Association (IAA) Foundation.

Guebert and his son, Kyle, operate a farm where they grow corn, soybeans and wheat.

Guebert served as director of the Lower Kaskaskia Stakeholders, Inc. from 1999 to 2004, director of the Kaskaskia Watershed Association from 2000-04 and director of Gateway FS from 1990 to 2008.

In 2001, he served on the IFB Co-op Task Force and is a 2001 Agriculture Leaders of Tomorrow graduate. Guebert was named a Master Farmer in 2006 by Prairie Farmer magazine.

Guebert has a bachelor’s degree in ag education with a minor in animal science from Southern Illinois University.

Guebert and his wife, Nancy, are members of St. John’s Lutheran Church in Chester.

In his role, Erickson serves as vice president of the companies that make up COUNTRY Financial, Illinois Agricultural Service Company and the IAA Foundation. He also serves as IFB Resolutions Committee chair and on the Coordinating Committee of GROWMARK Inc.

Erickson and his wife, Nancy, farm and operate a farm management business. They have one son, Adam.

Before beginning his farming career, Erickson taught agriculture and was an FFA adviser for four years. He has served as chairman of the Illinois Foundation FFA, and was Illinois FFA secretary-treasurer.

He is past director of the Oneida Telephone and Cablevision Companies, the Knox County Zoning Board of Appeals and past chair of the Galesburg Cottage Hospital Board of Trustees. He currently sits on the Midwest Bank of Western Illinois Board, Unit 10 Extension Council and the Knox County Board.

Erickson was named a Master Farmer in 2003 by Prairie Farmer magazine. He provides advice as a Prairie Farmer Profit Planner Panelist.

Erickson earned a bachelor’s degree in agricultural education from Western Illinois University.

His family belongs to Immanuel Lutheran Church in Altona.

General Assembly and constitutional officers “to craft and implement a process of fiscal integrity.”

Delegates support transparent, fair, competitive, stable and predictable state tax policies and actions to improve infrastructure, to reduce businesses’ regulatory burdens and to encourage business development.

School funding problems surfaced passionate comments when delegates faced and ultimately defeated a proposal for a statewide sales tax for school facility repairs and maintenance.

“We’re trying to raise funds (from an) alternate source for our schools,” said Brian Duncan of Ogle County, who spoke in support of the proposal.

“Farm Bureau does not want to raise taxes. We are opening a can of worms,” countered Mark Reichert, Sangamon County.

Delegates also discussed funding for education by removing policy that supported meaningful property tax reform through increases in state revenue, but they stopped short of approving a proposal to support the permanency of the temporary state income tax if a portion went to fund the education general state aid formula.

However, delegates passed policy supporting a new tax on the percentage of the wholesale fuel price. The funds would be distributed via the existing motor fuel tax distribution formula.

“We’ve got infrastructure and we need to fund it and we’ve got to be able to,” said Terry Ferguson, DeWitt County.

But delegates did not support the creation of a new tax for on-highway use of alternative motor vehicle fuels, despite Ferguson’s appeal that all vehicles which use roads should share the tax burden.

New IFB policy also reflects the increased use of mobile phones and the impact on 911 emergency systems.

Delegates voted to support legislation to increase the 911 surcharge on cellphones to adequately support the 911 telephone system — providing that all funding intended for

BY CHRIS ANDERSON FarmWeek

Richard Guebert Jr. of Ellis Grove became the 15th Illinois Farm Bureau president last week when members elected him at their annual meeting in Chicago. David Erickson of Altona was elected IFB vice president.

“I’m up to the challenge,” Guebert told members. “We will move Illinois agriculture forward by staying abreast of the issues and carry out our mission.”

Guebert, who has served as IFB vice president since 2003, said he plans to work with members in four areas — encouraging young people to choose agriculture careers, building deeper relationships with commodity groups and legislators, expanding the livestock industry and communicating with members through a variety of channels.

“I think our main challenges include regulations and where commodity prices are going,” said Guebert, former Randolph County Farm Bureau president. “We will engage with legislators so they hear our voices.”

Erickson, Knox County Farm Bureau president, agreed that agriculture regulations continue to concern farmers.

He further noted IFB needs to

Illinois Farm Bureau President Richard Guebert Jr., left, and IFB Vice President David Erickson were elected by Farm Bureau delegates last week. (Photo by Ken Kashian)

remain an influential voice in engaging young, new leaders in the industry.

“I feel a tremendous sense of responsibility to this organization. There’s an inability by Congress to reach a timely decision on the farm bill. IFB has been on point with this issue. The bill needs to be production friendly. We need to get into the media more to tell

State financial problems focus of FB policy debate

Delegates send fiscal message

BY KAY SHIPMAN FarmWeek

Periodicals: Time Valued

®

Ripples from Illinois’ ongoing fiscal problems dominated Farm Bureau policy debate during last week’s Illinois Farm Bureau annual meeting in Chicago.

Farm Bureau delegates grappled with issues related to various taxes as well as funding for schools, roads and bridges, and 911 systems.

They sent a strong message by unanimously passing a fiscal sense of the delegate body that will be sent to each state legislator and all constitutional officers.

The missive calls for the FarmWeek on the web: FarmWeekNow.com

See Financial, page 3

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

ANNUAL MEETING

FarmWeek Page 2 Monday, December 16, 2013

Three new faces join IFB board

BY CHRIS ANDERSON FarmWeek

Jerry Anderson, Rolling Meadows COUNTRY Financial agency manager, left, joins Cook County Farm Bureau Manager Bob Rohrer before the Santa Hustle 5K. (Photo by DeAnne Bloomberg)

COUNTRY, FARM BUREAU IN SANTA HUSTLE — COUNTRY Financial and Farm Bureau played a prominent role in Chicago’s annual Santa Hustle 5K Run/Walk at Soldier Field last week. The Rolling Meadows COUNTRY Agency was the major race sponsor and awarded prizes to some of the 8,000 participants, said Jerry Anderson, agency manager.

Several county Farm Bureau managers started the Illinois Farm Bureau annual meeting on the right foot by running in frosty weather. They included Rock Island County Manager DeAnne Bloomberg, Shelby County Manager Amy Rochkes, Grundy County Manager Tasha Bunting, Whiteside County Manager Matt Lillpop, Cook County Manager Bob and Jane Rohrer, and Stephenson County Manager Bruce and Andrea Johnson.

RECORD-BREAKING PENNY WARS — Young Leaders during the Illinois Farm Bureau annual meeting in Chicago hosted a record-breaking penny war that raised $9,007.10, according to Melissa Rhode, IFB membership and program director.

The money was given to the winners of this year’s penny war — District 1 Young Leaders. They raised $2,310.77, which was donated to a local food pantry.

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 may make donations.

WAHLE COMPLETES ‘STAGGERING’ EXPERIENCE — When it comes to serving on the Illinois Farm Bureau Board as an advisory member, Elizabeth Wahle utters the words “impressive” and “staggering.”

The University of Illinois Extension educator just completed a one -year term on the IFB board. Immediate Past President of the Illinois Extension Agricultural Association, Wahle provides leadership in food crop horticulture to commercial fruit and vegetable growers as well as home gardeners in southern and central Illinois.

“Farm Bureau covers every aspect of agriculture. It’s just staggering,” said Wahle, based in Collinsville. “A member calls in and the issue goes to the board and staff. They address state and national issues and give members advice on action. I was very impressed, and it was a wonderful experience.”

(ISSN0197-6680) Vol. 41 No. 49 December 16, 2013 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701.

Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek.

“Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

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. © 2013 Illinois Agricultural Association

STAFF Editor Chris Anderson (canderson@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 Margie Fraley (mfraley@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

Illinois Farm Bureau members elected three new board representatives during last week’s annual meeting in Chicago. Dennis Hughes of Decatur, J. Larry Miller of Thompsonville and Gary Speckhart of Quincy will serve two-year terms.

Hughes, a consultant with B and B Farms in Decatur, served as Macon County Farm Bureau president from 1988-94. The interim minDennis Hughes ister of the Illini Congregational United Church of Christ in Warrensburg will represent District 11 comprised of DeWitt, Macon, Piatt, Moultrie, Shelby and Christian counties.

“One of the things I plan to stress is good communication among the counties,” Hughes told the RFD Radio Network® (RFDRN). “I feel we’ve gotten away from that a little bit.

County members are the ones

out there every day trying to tell our story. I’m looking forward to working with them.”

Hughes and his wife, Betty, have three grown children – Christopher, Eric and Jonathan.

Miller served as Franklin County Farm Bureau vice president from 1978-79 and president from 1980-89.

He also served as the county’s Farm Bureau manJ. Larry Miller ager from 2002 to August 2013.

Representing District 17, which includes Wayne, Edwards, Wabash, Jefferson, Franklin, Hamilton and White counties, Miller and his wife, Kaye, raise grain and beef with their son, Jerry. They are members of the Immanuel Baptist Church.

“When I joined Farm Bureau in 1978, I thought it was a great organization. I am totally impressed with Farm Bureau. It’s a tremendous asset to every farmer in the state. I am humbled by this experi-

ence,” Miller told RFDRN. Miller served on the Franklin County Economic Development Council and is an IFB Agriculture Leaders of Tomorrow graduate. In addition to Jerry, the Millers also have sons, Jeff and Jonny.

Speckhart served as Adams County Farm Bureau president and currently serves as a Praireland FS director.

He is a member of the Bluff Hall Gary Speckhart Church in Payson.

Speckhart serves District 9, which includes Pike, Adams, Brown, Schuyler, McDonough and Hancock counties.

“Farm Bureau is a given if you’re involved in farming,” Speckhart told RFDRN. “I got involved as a young farmer.

Then I was on the (county Farm Bureau) board. I wanted to become more involved by serving on the IFB board.”

Speckhart and his wife, Rita, raise corn and soybeans. They have four children – Aaron, Somer, Rhiannon and Alese.

Illinois gubernatorial candidates address Farm Bureau delegates at the Illinois Farm Bureau annual meeting in Chicago. Clockwise starting at lower left: state Sen. Kirk Dillard, Gov. Pat Quinn, state Sen. Bill Brady, venture capitalist Bruce Rauner and state Treasurer Dan Rutherford. (Photos by Cyndi Cook and Ken Kashian)

Gubernatorial candidates share views

BY KAY SHIPMAN FarmWeek

The next Illinois governor — whoever he may be — addressed Farm Bureau delegates and leaders at last week’s Illinois Farm Bureau annual meeting in Chicago.

“This is the first annual meeting we’ve had every gubernatorial candidate here,” IFB President Philip Nelson told IFB members.

Delegates and leaders heard from Democrat candidate Gov. Pat Quinn and Republican candidates venture capitalist Bruce Rauner, state Sen. Bill Brady, state Treasurer Dan Rutherford

and state Sen. Kirk Dillard.

Each candidate noted the importance of the agricultural sector to the Illinois economy and the need to support agriculture. Each praised Farm Bureau and said he would work with the organization.

“Our state is a mighty agricultural state,” Quinn said. “It is important we fight hard for the RFS (renewable fuel standard).” Quinn has served as governor since 2009.

“You are the backbone of the Illinois economy,” Rauner said. “My No. 1 priority ... will be to enhance your competitiveness.” In 1981, Rauner began working at a startup

investment firm that became GTCR, a private equity firm.

“We need ... to focus on business and shore up our No. 1 industry -– agriculture,” Brady said. “Together we can make our state proud once again.” Brady has served in the Illinois Senate since 2002.

“Illinois is a great state,” Rutherford said. “You are the leaders of your communities.”

Rutherford was elected Illinois State Treasurer in 2010.

“Farmers understand hard work,” Dillard said. “We must improve the business climate in the state.” Dillard has served in the Illinois Senate since 1995.

ANNUAL MEETING

ENGAGING, LISTENING AND LEADING

Page 3 Monday, December 16, 2013 FarmWeek

Nelson concludes decade with departing decalogue

BY MARTIN ROSS FarmWeek

Borrowing a page from late night TV icon David Letterman’s Top 10 monologues, retiring Illinois Farm Bureau President Philip Nelson offered his own epilogue for members moving forward.

Opening the IFB annual meeting at Chicago’s Palmer House Hilton last week and drawing the curtain on a 10year career as IFB’s 14th president, Nelson enjoined members to be involved in organizations such as IFB and “empower more members to be part of the process,” listen to “what the consumer, your customer is telling you” and promote “the determination and the vision to keep this organization No. 1.”

The Seneca producer called on both state and federal officials to move past the respective Illinois pension reform debate and October’s government shutdown to address mounting debt and “get our fiscal house in order” to promote nationwide growth and improve Illinois’ business climate.

At the same time, Nelson charted signif-

icant ag progress over the last decade, as U.S. net farm income grew from a “meager” $39 billion in 2002 to a projected $131 billion for 2012 amid biofuels and trade demand, and ag technological advances. “You’ve adapted to that technology better than anyone else,” he told farmers.

Nelson meanwhile offered his Top 10 challenges for members in the months and years ahead: 10. “We need better engagement of

our members in this organization.” Nelson hoped the organization’s recently inaugurated “branding program” and an upcoming This Week in Illinois Farm Bureau smartphone app would help keep members connected with Farm Bureau and its goals.

9. “We need to understand the implications of ‘Big Data.’” See details on IFB’s new ag data use and privacy policy on page 4.

8. Build trust with consumers. “Consumers don’t understand what we do,” said Nelson, who nonetheless cited producer success in re-engaging with consumers through the Illinois Farm Families program.

7. Urge policymakers to update the nation’s transportation infrastructure.

Agriculture won a promising but “shallow victory” with recent congressional support of waterways infrastructure legislation now in conference negotiation, but “we still have to get (project) appropriations,” Nelson stressed.

He noted Illinois includes 140,000 miles of roads — the nation’s third highest mileage — along with some 2,100 structurally deficient bridges that are barely adequate to accommodate “the modes of transportation we’re using today.”

6. “We need an ag jobs bill.” Nelson urged members to continue pushing in 2014 for congressional immigration reforms that include a sensible path to citizenship for an estimated 11 million undocumented foreign workers in the U.S. 5. Work toward citing of statewide

transmission lines that don’t “carve prime farmland up.” Lines ideally should be placed along state and federal roads and property borders, with an emphasis on monopole structures that minimize utility footprint, Nelson said.

4. “We have to continue to defend animal agriculture.” Nelson decried activist attacks on “an industry that’s doing things right,” citing the gains achieved through Illinois’ Livestock Management Facilities Act and the Illinois Livestock Development Group. “My message to these activists is, ‘This pork chop’s for you,’” the president declared.

3. Push passage of a new farm bill with provisions designed “to keep crop insurance whole.” “We need a farm bill now,” Nelson said.

2. Support continued biofuels growth.

1. Help arrest “continued regulatory creep.” In winning a recent federal lawsuit over Chesapeake Bay nutrient regulations, the Environmental Protection Agency (EPA) can now alter total daily maximum load requirements, Nelson advised.

EPA restrictions could idle 600,000 acres in the Chesapeake, “let alone what that could do right here in the Mississippi Basin,” Nelson advised. Fifteen states, including Illinois, have joined with American Farm Bureau Federation to challenge EPA’s nutrient numerical criteria.

“They need to give credit to you producers for what you’ve done along rivers and streams,” Nelson said. “We need to inject common sense back into this equation and turn this situation around.”

IFB delegates propose oversight for raw milk sales

New study heightens safety concerns On the eve of a new report challenging the safety of raw milk consumption, Illinois Farm Bureau delegates deemed oversight of unpasteurized milk preferable to unregulated sale of the increasingly popular product.

Delegates supported pasteurization of raw milk for sale to the public. While they cited “a segment of consumers that prefer to purchase raw, unpasteurized

Financial

milk,” they recommended it be marketed exclusively and directly by farmers from farms under an Illinois Department of Public Health Grade A permit and only to consumers who supply their own containers.

The new policy sparked debate between producers concerned about potential foodborne illness related to raw milk and delegates like Fayette County’s Jon Phillips

Continued from page 1 911 goes to those facilities.

“It’s a life-and-death issue,” Ferguson said in support. “I know many counties are struggling to keep up with technology ...

The technology to make cellphones responsive to 911 (calls) is more expensive ...

We’ve got to make it work and we’ve got to fund it.”

In other state and local government policy action, delegates supported requiring appropriate landowner or tenant notification in all utility easement agreements.

They passed policy to change the expedit-

who argued many parents see “a rational scientific reason” for feeding raw milk. DeKalb County’s Adrian Plapp urged producers to follow co-opprescribed processing guidelines, but respect the “individual liberties” of raw milk marketers.

Kane County’s Beth Engel favors pasteurization to ensure “quality and safety for the consumer,” but noted “there is a (raw milk) market

ed review provisions of the Illinois Public Utilities Act. The policy calls for preventing public utilities from using expedited review for long, complex projects. Delegates also voted to change the existing deadline to a more reasonable timeline for Illinois Commerce Commission rulings on eminent domain requests for electric transmission line projects under expedited review.

In cases of land access, new IFB policy supports landowners being an additional named insured for all government and public utility project work being done on private property.

out there — it is happening and we’re not going to stop it from happening.” Without some oversight and/or standards, Ogle County’s Brian Duncan suggests that market could deteriorate into a “Wild West atmosphere.”

“All it takes, the way the media is, is one bad incident,” Bond County Farm Bureau President Frank Doll warned.

“I don’t want that black eye to hurt the industry.”

According to a study published last week in the federal Centers for Disease Control and Prevention (CDC) journal “Emerging Infectious Diseases,” the number of Minnesota consumers sickened by unpasteurized milk has far exceeded cases reported in major outbreaks.

Between 2001 and 2010, 21 Minnesotans became ill in confirmed outbreaks, but an added 530 possible cases were logged in state records. Most victims suffered brief diarrhea, but some cases involved E. coli, which can cause kidney failure.

A previous CDC study found raw milk 150 times more likely than pasteurized milk to cause illness.

National Milk Producers Federation (NMPF) spokesman Chris Galen noted growing safety concerns about raw milk as individual states debate its sale. Raw milk advocates have yet to substantiate that pasteurization causes “any reduction in the healthful qualities of milk,” he told FarmWeek.

NMPF and the International Dairy Foods Association has asked Wisconsin Gov. Scott Walker to reject legislation that would liberalize raw milk sales. A veto now appears imminent.

“This is a form of Russian roulette. The Minnesota survey’s yet one more bit of evidence that confirms that,” Galen said. “At the end of the day, you should be able to feel good about the products you sell and not have to tell people that it’s ‘buyer beware.’”

— Martin Ross

Big data big deal for IFB delegates ANNUAL MEETING

FarmWeek Page 4 Monday, December 16, 2013

BY MARTIN ROSS FarmWeek

Following months of networking with major ag players, outgoing Illinois Farm Bureau President Philip Nelson last week stressed the need for producers to get ahead of “Big Data” even as it propels them forward. IFB annual meeting delegates concurred.

They opened 2014 policy debate with a new data collection, protection and ownership policy. The policy emphasizes farmer education, and industry accountability and transparency in data use.

Organization leaders and staff this fall have discussed issues regarding aggregation of electronic data and farm data confidentiality with key

agribusinesses. Nelson maintained “this is going to be very powerful data in time.”

Monsanto’s recent acquisition of weather data broker Climate Corp. has raised the issue’s visibility. Nelson emphasized hopes of farmers working with industry to address mutual needs, particularly if John Reifsteck delegates “get it right from the get-go.”

“I think we’re making progress in this area,” Nelson said. “But I still have some concerns. Over the next 12 months, I think you’re going to see a lot

Data ‘vertical integration’ raises crop of new questions

For most producers, the intricate implications of farm data are “just beginning to come on the radar,” according to Matt Bechdol, president of GeoSilos, a geographic-spatial analysis/data mapping firm.

Ag companies are a few steps further along the curve, and Bechdol sees a growing “pushback” from informed farmers seeking clarity regarding corporate data collection, sharing and security.

GeoSilos is partnering with Informa Economics on a study of issues related to “Big Data.” The analysis will examine existing and future ag data applications and evaluate their “value proposition” for various sectors given the downturn in commodity prices and other economic circumstances.

“At a micro level, obviously there are questions about computer technology and human capital and people having the right skills,” Bechdol told FarmWeek. “There are questions about privacy and security. There are questions about the direction of technologies such as different (data) sensors.

“As it pertains to these specific issues of privacy and security, there are a lot of questions about the tradeoffs, if you will, between privacy, security, perceived value, real value and trust in the marketplace.

“As you talk about data sharing and exchange, there is no one answer as to how those variables are balanced. Every farm, every grower and even particular industries tend to place slightly different weights on those variables.”

He sees inadequate dialogue about the need for clarity in ag data user agreements, terms and conditions. Producers should consider whether they’re exchanging data for “some kind of tangible product,” with whom vendors may share their information and possible secondary uses for data, Bechdol said.

He cites “lessons learned” from the initial ag e-commerce craze of the late ‘90s and early 2000s, and sees a far greater current industry focus on “cybersecurity.” The greater concern lies in legal data ownership and potential corporate data sharing, according to Bechdol.

“As we’re sharing more and more data to receive these services at the farm level and as these acquisitions occur, you’ve got this vertical integration of information, and that can lead to a number of things,” he said.

“With the vertical integration of information, one naturally starts to think about things like, ‘With more information, can I play the market? Can I more precisely price my products and solutions based on grower ability to pay?’ What remains to be seen is, will companies do these things. To what extent will they do these things? What secondary and tertiary purposes might this data be used for?” — Martin Ross

of changes in this area.”

IFB delegates agreed to: • Support efforts to educate ag stakeholders regarding use of new technology or equipment that can receive, record and/or transmit individual data; • Support requiring companies that are collecting, storing and analyzing farm data to provide full disclosure of their intended use of that data; • Seek development of and an active role in discussions regarding industry-wide protocols for data disclosure, privacy and use agreements; and • Encourage participants in data-sharing use agreements “to recognize the value associated with the data,” allowing farmers providing it to receive fair compensation.

GROWMARK chairman and Champaign-area producer John Reifsteck, an early Illinois precision farming pioneer, told FarmWeek data control “has been an issue ever since the very beginning of precision agriculture.”

Reifsteck believes Monsanto’s Climate Corp. acquisition “makes perfect business sense,” and suggests producers will benefit as ag tech providers and users “connect the dots.” In an increasingly competitive market where “the person with the best data and the best way to use that data wins” and vendors will suffer the consequences of “bad actions,” he foresees development of solid industry data-confidentiality protections simply as a matter of “good business.”

But as agribusiness becomes more sophisticated, Reifsteck warns farmers must become more savvy particularly in reviewing data use agreements.

“I think the important thing (for farmers) is just to understand the process — who’s going to have the rights to data, who’s going to have access, how’s it going to be used?” the past Prairie Farmer magazine Master Farmer said. “Are they going to use it proprietarily? Is it going to be sold? Is it going to be aggregated? Are people going to be able to identify your farming operation?

“I’m afraid that what’s going to happen is that user agreements are going to begin to look a lot like the online user agreements we all sign, with pages and pages of legal terms, and that after the fact, we’ll find out that we have given up rights that perhaps we shouldn’t have given up.”

CONTEMPLATING BIDDERS

Brad and Carrie Gates of White County consider bidding on items at the silent auction during the Illinois Farm Bureau annual meeting in Chicago last week. Their son, Joseph, 7, and daughter, Alexus, 4, provided some bidding advice. (Photo by Ken Kashian)

IFB delegates debate, maintain wind energy policy

BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau will continue to seek statewide standards for commercial wind energy development, one of the organization’s 2014 state legislative priorities.

During lengthy, and at times, emotional debate, Farm Bureau delegates discussed the need for Illinois wind development siting standards, especially noise standards. However, delegates did not support changing existing IFB policy.

“IFB has in policy a desire for statewide (wind development) standards,” Mark Gebhards, executive director of governmental affairs and commodities, told journalists after the vote. “The (delegate) debate shows there is concern about turbine size ... and the impact on residents.”

Statewide siting standards under the Livestock Management Facilities Act have worked for the livestock sector, and Farm Bureau would like similar statewide standards for wind development, Gebhards added.

In other natural resource policy action, delegates supported state incentives to stimulate an increase in ethanol beyond the current E10 blends to benefit consumers and the state economy.

Delegates also voted to encourage farmers to participate in voluntary best management practices that maximize nutrient use and minimize negative environmental impact.

In mineral interest policy, delegates voted to support the Illinois County Assessment Officers Association’s efforts to require oil and gas operators and first purchasers of oil and gas to annually report well production accurately to county assessing officials in a workable time frame or be fined for failing to do so.

In floodplain policy, delegates added new policy that IFB should work to preserve statewide permits authorized by the Illinois Department of Natural Resources (IDNR) at no cost for certain construction, transportation and infrastructure maintenance projects in floodplains.

IDNR proposed amending state rules for construction in floodways of rivers, lakes and streams. The matter is before the state Joint Committee on Administrative Rules.

ENERGY

Page 5 Monday, December 16, 2013 FarmWeek

Flider: Original RFS2 targets ‘work well for Illinois’

Nelson proposes EPA reality check

BY MARTIN ROSS FarmWeek

Proposals to scale back on near-term federal biofuels mandates would short-change Illinois farmers and communities as well as the nation’s economy and energy security, the state’s top ag official warned last week in Chicago.

According to Iowa State University, the U.S. Environmental Protection Agency (EPA) proposal to trim more than a billion gallons in required 2014 corn-based ethanol use under the federal Renewable Fuel Standard (RFS2) could reduce corn prices to the tune of 19 cents per bushel.

In his final address as Illinois Farm Bureau president, Senecaarea producer Philip Nelson warned EPA’s plan thus Bob Flider could cost the Illinois corn sector at least $400 million annually and “negatively impact rural development.” An EPA-proposed freeze on 2014 RFS2 biodiesel blending requirements could inflict added hardship on the soy industry, he said.

At IFB’s annual meeting in Chicago, 867 individuals signed petitions challenging

EPA. County Farm Bureaus plan to solicit additional signatures at upcoming local events.

Nelson emphasized the need to “increase the demand for the products you produce,” but argued “the Environmental Protection Agency doesn’t see it that way.” He reported plans to invite EPA Administrator Gina McCarthy to witness firsthand “what ethanol and biodiesel are doing in Illinois.”

Existing RFS2 targets “work well for Illinois, they work well for farmers, but they also work well for the United States,” Illinois Ag Director Bob Flider told FarmWeek.

“Biofuels proliferation has decreased U.S. dependence on foreign oil and creates new ag markets,” Flider noted.

“And when I say new markets, that’s not just sales of corn and soybeans by producers. It’s also the new byproducts that have been created, like the $759 million in dried distillers grains that we’re exporting,” he said. “It’s a byproduct used by livestock producers not just here locally but also throughout the world.

It helps our companies that produce ethanol. It helps our farmers all the way around.

“No matter how you look at it, it’s been a good deal. We need to do everything we can to keep it that way. Gov. Quinn is going to be working with

our Washington officials to that effect. It’s vitally important that we recognize the importance of Illinois agriculture. Supporting the Renewable Fuel Standard the way it is is a way to do that.”

On a broader scale, “energy options are good for the marketplace,” GROWMARK Government Affairs Director Chuck Spencer maintained.

Spencer sees “room for everybody at this table of demand” and the need for “a portfolio of energy options” to address supply and price challenges in individual sectors.

While he acknowledged demand for standard 10 percent ethanol blends has been “virtually met,” Spencer sees a growing push for price-competitive, higher-level blends in the Midwest. Consumer biofuels demand should continue to grow as long as policies foster “(fuel) infrastructure that’s reliable and a supply that’s economical,” he told FarmWeek.

U.S. Rep. Rodney Davis, RTaylorville, noted a growing congressional challenge to biofuels growth fueled by oil interests and livestock producers “who believe their input costs are directly related to the RFS2.” As a result of EPA’s new proposal, “we’re probably playing a little more defense than we were just a year ago,” Davis warned.

At last week’s Illinois Farm Bureau annual meeting in Chicago, Bloomington’s Tricia Braid, an Illinois Corn Growers Association staffer, signs an IFB petition challenging the U.S. Environmental Protection Agency’s proposal to pare back corn ethanol and freeze biodiesel blending mandates for 2014 under the federal Renewable Fuel Standard. ICGA representatives worked with IFB at the annual gathering to underline concerns about agency proposals.

(Photo by Martin Ross)

IFB sends RFS2 signal to D.C. Illinois Farm Bureau voting delegates made the current federal threat to the Renewable Fuel Standard (RFS2) literally their first order of business prior to policy debate last week.

On behalf of IFB’s 407,378 members, farmers gathered in Chicago kicked off policy review with a sense of the delegate body calling on the U.S. Environmental Protection Agency (EPA) and the White House “to revisit and reverse their proposed rule, restore ethanol’s place in our nation’s motor fuel supply,

and retain the economic, environmental and national security advantages of homegrown fuels.”

The resolution cited Illinois’ “billions of dollars in private investment in renewable fuel production” — investments that have given root to 20 statewide biofuels facilities.

That growth has “contributed significantly to making the U.S. agriculture sector an economic bright spot,” delegates maintained.

Further, they argued the RFS2 has helped fuel higher crop prices, low-cost, high-

protein feed for the livestock sector and record net farm income levels. Beyond the farm gate, ethanol-blended gasoline “lowers pump prices for consumers, reduces greenhouse gas emissions and lessens our nation’s dependence on oil imports,” delegates stated.

On the other hand, they warned EPA’s “misguided” RFS2 proposals “have the potential to inflict severe economic harm on both farmers and consumers” and, in the long run, “shut the door on higher blend levels.”

EPA’s move to reduce statutory RFS2 targets “flies in the face of the law,” the lawmaker told FarmWeek.

Flider sees ample opportunity to meet standing RFS2 biofuels mandates. He finds expansion of Illinois ethanol plants into corn oil-based

biodiesel production “exciting,” and hails potential to use restaurant grease and other wastes to generate added biofuels “in a sustainable way.”

“We’re getting smarter with all the approaches we’re using to create fuel,” Flider said.

Ethanol blend wall merely a ‘blend mirage’?

BY CHRIS ANDERSON FarmWeek

When Vince Kwasniewski looks beyond the so-called 10 percent ethanol blend wall, he clearly sees a mirage.

“This is a battle for market share,” said Kwasniewski, vice president of business development for bio-refiner GTL Resources and subsidiary Illinois River Energy. “The oil companies are fighting EPA’s Renewable Fuel Standard (RFS) because they don’t make ethanol.”

Speaking at last week’s Illinois Farm Bureau annual meeting in Chicago, Kwasniewski cited the latest Environmental Protection Agency (EPA) proposal to reduce the required amount of corn-based ethanol and soybean-based biodiesel to be blended in motor fuels next year by nearly 3 billion gallons.

EPA officials stated the nation has reached an E10 blend wall – the point at which the E10 fuel pool is saturated with ethanol. That means continued growth in ethanol use will require higher blends, officials added.

Kwasniewski said ethanol has consumed 8 percent of the fuel market during the last 10 years. He further noted that oil companies dictate the type of fuel sold at gas stations through franchise agreements.

Kwasniewski, who manages risk through commodity purchases for Illinois River Energy, added that auto makers want to develop more efficient engines. Eighty percent of cars are made to efficiently burn E15 fuel, he said.

“In order for auto makers to produce better engines, they need to see us break through the 10 percent blend wall to E15,” said Kwasniewski. “That can happen if you incite E15.

Take away the E10 state tax exemption in Illinois and go to E15.”

Illinois Farm Bureau members and Illinois Corn Growers Association (ICGA) members agree with the need for an E15 state sales tax. However, IFB annual meeting delegates added language to the renewable fuels policy leaving the E10 state sales tax intact, while also calling for creation of a new E15 state sales tax incentive.

“We are in favor of an E15 sales tax. July would probably be the soonest the sales tax could become effective,” said Rod Weinzierl, ICGA executive director. “The EPA proposal is a bump in the road. I can’t believe we won’t move toward cleaner, cheaper, environmentally friendly fuel.”

Gary Hudson, ICGA president, testified recently at a national RFS hearing. Corn growers plan to launch a major call-in and writing campaign opposing the EPA’s proposal next month during a 60-day comment period. IFB collected petition signatures during annual meeting opposing the EPA proposal.

“I wore my school board hat at the hearing. We rely on local industries and property taxes to fund schools. What if corn prices go to $3.50 per bushel? We need every farmer’s help to fight this,” said Hudson of Hindsboro.

Kwasniewski echoed Hudson’s sentiment. He said he believes many Americans are repulsed by mandates because they think “if the government is forcing me to do something, it can’t be right.”

“This is one mandate that saves consumers money by providing cheaper fuel,” Kwasniewski concluded. “This proposal sets a precedent. All the refiners have to keep saying is that they can’t blend any more ethanol.

“You’ll see biofuel refineries shut down. And there’s more corn out there at lower prices. I can’t think of another market you can find to sop up all the corn we use in ethanol. I hope with our outcry that the proposal will not become final.”

Combined billing to begin next year ANNUAL MEETING

FarmWeek Page 6 Monday, December 16, 2013

BY CHRIS ANDERSON FarmWeek

Beginning in 2014, county and Illinois Farm Bureau associate members will begin receiving their Farm Bureau dues and COUNTRY Mutual or COUNTRY Preferred insurance premiums listed on a combined bill.

IFB Annual Meeting delegates last week approved bylaw changes, setting the stage for a combined billing process. The changes ultimately allow COUNTRY to bill associate members for their dues on behalf of county Farm Bureaus and IFB. For those members who are combine-billed, coun-

Tazewell County members share farm experiences

Students at William P. Gray Elementary School in Chicago now know how and where their food is grown, thanks to Tazewell County Farm Bureau members David and Gladys King of Morton.

The Kings visited Shari Masters’ fourthgrade Chicago class during the Illinois Farm Bureau annual meeting. Prior to the visit, the Kings communicated with the class via email.

Students were armed with booklets filled with questions generated by the email. The Kings shared their experiences and photos of raising corn, soybeans and popcorn.

They also provided Agriculture in the Classroom Ag Mags.

After school was dismissed, the Kings shared information about their farm with members of the school’s garden club.

Many of the students made posters, and sent the Kings home with gifts and letters from their class. In turn, the Kings presented the students with ears of popcorn as well as shelled popcorn to enjoy as a snack.

decreased from 30 percent to about 2 percent. ty Farm Bureau/IFB dues and memberships will be Combined billing should further provide synchronized with insurance renewals or a premium improved member/customer experience, increased installment. Other insureds and members who are operating efficiencies and higher not insured will continue to receive sepaFarmWeekNow.com member/customer satisfaction. rate bills based on the current Farm View our selection of videos The new combined billing Bureau membership year. from the recent IFB Annual process also facilitates the ability The process aims to make it easier for members/customers, thus improv- Meeting in Chicago. Go to to conduct business online.

FarmWeekNow.com and click Voting members will continue ing retention. Earlier this year, on the video tab in the menu. receiving stand-alone county and COUNTRY introduced combined IFB dues notices. County Farm billing for Oregon Farm Bureau memBureaus may opt to provide combined billing to votbers and insurance clients. Late payment of ing members in 2016.

Oregon Farm Bureau membership dues

Fundraising efforts IAAA proposes asset break event records sale to accounting firm

Thanks to Farm Bureau members imitating ducks, scooping ice cream and placing generous bids, the IAA Foundation raised $44,000 from annual meeting fundraising activities last week.

The amount rivals last year’s record. The foundation, Illinois Farm Bureau’s charitable arm, uses the funds for Illinois Agriculture in the Classroom programs.

Specifically, Trivia Night activities at the annual meeting raised a record $12,000. Thirtyone teams competed, throwing in duck calls and wearing Duck Dynasty-themed costumes.

The Live Auction and Ice Cream Social raised more than $16,000 in 90 minutes. Dean and Kimberly Redington of Jo Daviess County had the top bid of $7,750 for a John Deere Z925M mower. Bidders as well as donations to the Prairie Farms Ice Cream Social contributed to the total. The Silent Auction featured many unique and handcrafted items, raising $11,250 through generous bids.Â

We ar are are

Your FIR Your RST ST Ch Choic ce for R Ru ura ura al Ho ome Loa oa ans. an

"HSJDVMUVSBM 'JOBODJOH t 3VSBM )PNF -PBOT t "QQSBJTBMT

-FBTJOH t "HSJCVTJOFTT BOE NPSF -F B T J O H t "H S J C V T J O F T T B O E N P SF

t XXX TUGBSNDSFEJU DPN

t XXX TUGBSNDSFEJU DPN EEqual qual C Credit redit Oppor Opportunity tunity LLender. ender. EEqual qual Housing LLender. ender.

On Jan. 10, shareholders of the Illinois Agricultural Association’s (IAA) oldest affiliate will vote on a proposal to sell their assets.

Illinois Agricultural Auditing Association (IAAA) board directors have approved a proposal to sell certain assets of the nonprofit accounting cooperative to Minneapolis-based CliftonLarsonAllen LLP. Members and shareholders attending IAAA’s 90th meeting last week in Chicago discussed the proposal. “IAAA has built a reputation on our unique and ‘niche’ expertise (grain and cooperative business). The problem is the niche we serve is shrinking, and we can neither adjust costs nor replace revenue to adequately offset that scenario,� said Bob Phelps, IAAA president. “Also, our business model does not readily allow for a cash infusion from shareholders to finance any significant structural change.�

Phelps noted the board believes an asset sale to CliftonLarsonAllen (CLA) is in the best interest of IAAA clients, members and shareholders. CLA will provide expertise in audit and tax work, while offering expanded services, Phelps added. The firm has Illinois offices in Belleville, Champaign, Danville, Dixon, Glen Carbon, Joliet, Oak Brook, Peoria, Princeton, Rockford and Sterling.

Brian Brown, IAAA general manager, said the board believes CLA poses the best fit for existing clients. He said CLA shares a similar culture to Illinois Agricultural Auditing AssociaIAAA in its staff as well as its tion (IAAA) President Bob Phelps of services.

Rockton, displays a 1960 portfolio “CLA does similar business given to his grandfather sporting lo(including privately-held and gos of eight Illinois Agricultural Assononprofit agribusinesses). ciation affiliates. IAAA shareholders They have the resources, struc- will vote next month on a proposal to ture and the necessary com- sell their assets. If that happens, the mitment to agribusiness suc- logos of GROWMARK Inc., COUNTRY Financial and Prairie Far ms cess to help us continue to serve our clients,� said Brown. Dairy will represent the remaining afAn affirmative vote of two- filiates marked on the portfolio. (Phothirds of the shareholders will to by Ken Kashian) be required to approve the proposed asset sale.

In other IAAA annual meeting action, members elected David Meiss of Gridley (McLean County) to serve as the IAA interlocking board member. He succeeds Terry Pope of Burnside (Hancock County), whose term expired.

Meiss represents District 7 on the IAA board. He serves on the IAA and COUNTRY Financial Audit Committees and the COUNTRY Trust Bank Board.

Originally formed as the Illinois Agricultural Co-Operatives Association in 1924, IAAA was reorganized in 1931. The association, located in Normal, remains unique as the only Certified Public Accountant firm in existence formed as a cooperative specializing in agribusiness. Members include approved agricultural associations, Farm Bureaus and cooperative associations. — Chris Anderson

YOUNG LEADERS

Page 7 Monday, December 16, 2013 FarmWeek

Young Leaders: Farmers must be proactive, engage consumers

BY DANIEL GRANT FarmWeek Most U.S. farmers excel at producing high quality food products at affordable prices.

Otherwise, they wouldn’t be in business very long.

But that isn’t always enough to satisfy many consumers these days. There’s growing demand for information about how food is produced from a U.S. population that is becoming further removed from production agriculture with each new generation.

The question of how Farm Bureau should engage members, who represent all kinds and types of operations, to better promote agriculture and improve the industry’s image was discussed by Young Leaders Caleb May (Christian County), Brent Clair (Adams County), Landon Frye (Edgar County) and Kim Redington (Jo Daviess County) during the finals of the Young Leaders Discussion Meet at the IFB annual meeting in Chicago.

“We are fortunate to be living in a time when one in four Americans wants to know more about where their food is coming from,” said Redington, who noted less than 2 percent of the U.S. population is connected to food production.

However, the lack of knowledge about food production combined with the overwhelming amount of information, and often misinformation, online is a

hurdle for farmers to negotiate.

“Now, more than ever, what we do in agriculture is being scrutinized,” said May, who believes biotechnology, food safety and animal care are the top food concerns of the general public.

“Misconceptions can spread very fast,” he continued. “We must separate fact from fiction and move forward.”

For instance, many consumers are unaware there are withdrawal times for antibiotics used to treat sick animals that prevent residue from entering the retail meat case.

“Because of withdrawal times, everything is antibiotic free, unless somebody is doing something wrong,” May said.

The Young Leaders agreed that farmers should begin telling their stories at the local level.

Farm Bureau-related programs such as Ag in the Classroom and Illinois Farm Families play a key role.

“It’s something that’s got to start at the grassroots level,” Clair said. “It breaks down the communication barrier.”

Farmers also must communicate with each other to get on the same page when dealing with food issues.

Ag groups that battle over issues, such as the farm bill, likely just add to consumer confusion, Redington said.

“Within agriculture, some groups battle others,” she said.

Young Leaders’ unique dairy venture rises to the top in north central Illinois

The Kilgus family of Fairbury (Livingston County) hoped to add more stability to their business and connect with consumers when they opened their own milk bottling plant in 2009.

And, so far, the unique dairy venture has done just that.

Matt and Jenna Kilgus along with Matt’s uncle, Paul, other family members and three full-time employees milk a herd of about 140 Jersey cows. They bottle and market all of the nonhomogenized milk, which means the cream from the milk naturally rises to the top.

“I think demand has surpassed expectations,” Matt told FarmWeek. “Once the marketing ball started rolling, more stores started calling us for our products rather than us having to go out and market them.”

The Kilgus family bottles all its milk three times a week and sells whole milk, 2 percent, skim milk, chocolate milk, heavy cream, half and half, and soft-serve ice cream mix.

About half the Kilgus dairy products are sold in the Chicago area while the remainder is distributed throughout central Illinois.

The operation helped the Kilguses better manage their margins. They’ve only changed the price of their milk in retail stores once since starting the venture.

“It’s created a stability for our income off milk and stability for our consumers (who’ve become accustomed to a consistent product and price),” Matt said.

Matt and Jenna, who have been Illinois Farm Bureau Young Leaders the past decade, believe connecting with consumers and fulfilling a niche in the market are vital to their success.

The couple last week during the IFB annual meeting in Chicago met with an adopted classroom in the Chicago area. They plan to host farm tours for the urban school children this spring.

“A lot of our customers like the fact that our milk is from a single source, so they know where it’s coming from,” Matt said.

“A lot of them come out to the farm to see the process from start to finish. It is rewarding.”

The Kilguses doubled the size of their herd from about 70 to 140 cows since opening their own bottling plant.

For more information visit the website {kilgusfarmstead.com}. — Daniel Grant

“Part of what Farm Bureau can do is work together (and bring farmers together) to provide information to consumers.”

May noted, “everybody’s entitled to their own opinion.

Where we can get growers to come together is with facts.”

Overall, economics and a

growing population still are positive factors for agriculture.

The majority of consumers surveyed about food noted the top three factors that influence food purchases are price, quality and taste, according to Frye.

“Simple economics still work in our favor,” Frye said. “They

(consumers) have to eat and we can provide it. They just want a little extra information.”

The Young Leaders agreed farmers should use all available resources, from talking with neighbors and hosting farm tours to social media, to connect with consumers.

IFB YOUNG LEADER COMMITTEE

Jared Finegan, front left, of Ford-Iroquois County Farm Bureau, was selected chairman of the Illinois Farm Bureau Young Leader State Committee at last week’s annual meeting in Chicago. He will be assisted in 2014 by, front row, right, Matt Rush (Wayne County), vice chairman; back row, left to right Daniel Gvillo (Madison County), chairman of the Achievement Subcommittee; Ryan Voorhees (Tazewell County), chairman of the Education & Recruitment Subcommittee; Matthew Starr (Hancock County), secretary; and Dale Pitstick (Kane County), chairman of the Governmental Affairs & Commodities Subcommittee. (Photo by Ken Kashian)

ANNUAL MEETING

FarmWeek Page 8 Monday, December 16, 2013

Rove praises IFB creation of the leadership cabinet

BY KAY SHIPMAN FarmWeek

Political consultant Karl Rove, standing center, chats with current and former Illinois Farm Bureau directors and their spouses during the inaugural ACTIVATOR Political Leadership Cabinet banquet last week in Chicago. Joining Rove left to right are: Debbie and IFB Director David Meiss of Gridley, Mary Ann Simms of Liberty, former IFB Director Bill Olthoff of Bourbonnais and former IFB Director Randy Sims of Liberty. (Photo by Ken Kashian)

Illinois Farm Bureau members are making the right investment in candidates and political action by forming the ACTIVATOR Political Leadership Cabinet, political consultant Karl Rove told inaugural cabinet members last week in Chicago.

“There are big challenges facing this state and agriculture ... Groups who influence elections and policy use money to get things done,” Rove, former deputy chief of staff to President George W. Bush, said during his opening remarks accessible to FarmWeek.

STANDING STRONG WITH FARMERS Since 1925

Rogge representing Extension on IFB board

Join the number one crop-hail insurer in Illinois for an information session near you.

Mike Rogge of Quincy will serve on the Illinois Farm Bureau Board this year as liaison from the Illinois Extension Agricultural Association (IEAA).

Rogge, IEAA president, serves as a University of Illinois local food systems and small farm specialist.

He began his Extension career in 1980 as a county ag adviser. He’s also served as a crop educator in western Mike Rogge Illinois.

He and his wife, Theresa, operate a fruit and vegetable operation, selling produce to local County Market and HyVee grocery stores. They also raise corn and soybeans.

“My dad was a county Farm Bureau president, so I’ve been around Farm Bureau for years,” said Rogge, appointed to the IFB board last week. “The annual meeting opened my eyes. I had no idea the depth and breadth of the organization, and how widespread its face is across the state.”

Topics will include:

Updates to the Federal Crop Insurance Program

Updates on the Farm Bill and what to expect moving forward

How to use grain marketing and crop insurance together to manage risk and get the best profit per acre

Best practices for handling claims to make the process as easy as possible

Rove, who worked on Bush’s 2000 presidential campaign and Bush’s re-election, praised Farm Bureau members for financially supporting ACTIVATOR. “It is important you do so and I compliment you,” he added.

Illinois farmers face an additional challenge in the policy arena, he noted. Urban and suburban Illinois populations continue to grow while the number of farmers decreases.

“More mechanization means fewer farmers are working the land,” Rove said. “Consider the public policy impact.”

Illinois’ population is concentrated in six urban counties, Rove noted. Seven of the state’s 18 Congressional districts are exclusively urban districts, he added.

“This pattern (of urbanization) has been going on for ages and will not stop tomorrow,” Rove said.

Rove told leadership cabinet members he had read IFB policy goals, including maintaining funding levels for state agriculture programs and agricultural education.

“You know the state is in bad shape (financially) and you want to hold it level,” he pointed out.

Rove raised other issues important to IFB and agriculture, and implied urban and suburban legislators may not have similar views.

Sessions will run from December–March 2014.

To register, go to www.countrycrop.com/update.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, IL. This entity is an equal-opportunity provider.

1213-077

12:01 PM

Page 9 Monday, December 16, 2013 FarmWeek

Frels honored with IFB Eagle Award for Excellence Mark Frels of Bloomington, who retired in January after 35 years with the Illinois Farm Bureau, received the 2013 IFB Eagle Award for Excellence at last week’s IFB annual meeting in Chicago.

Frels joined Farm Bureau in 1977 as a county Farm Bureau manager trainee. He was named Knox County Farm Bureau manager later that year. During his tenure, Knox County Farm Bureau was recognized more than 130 times for program excellence, including several Liberty Bell Awards and President’s Awards.

In 1986, Frels was named one of three regional Farm Bureau managers, overseeing the operations of 34 county Farm Bureaus. During that time, regional activities increased significantly, especially in program and personnel development, and membership acquisition and retention.

In March 1993, Frels was promoted to director of the IFB Field Services Division

and two years later was named executive director of field services. Under Frels’ leadership, IFB developed a county manager trainee program, dramatically expanded the Illinois Agriculture in the Classroom program and increased the member benefits program as well as youth education activities to connect IFB and its affiliates with FFA and 4-H programs.

In 1999, Frels was named the executive director of Member Services and Public Relations, a position he held until his retirement.

During his tenure, IFB membership grew from 264,000 to more than 400,000.

Frels has received numerous awards and honors including the Knox County Meritorious Service to Agriculture Award, the Illinois Wesleyan University Distinguished Alumni Award and Honorary State FFA Degree.

Frels and his wife, Ann, plan to move to Rock

Mark Frels, center, former executive director of Illinois Farm Bureau Member Services and Publics Relations, along with his wife, Ann, accepts the IFB Eagle Award from IFB President Philip Nelson, during the organization’s annual meeting last week in Chicago. (Photo by Ken Kashian)

Island County and take over management of the family farm.

The IFB Eagle Award for

Excellence provides IFB an opportunity to recognize individuals or organizations for excellence on issues or

programs important to Farm Bureau and agriculture on a statewide and/or national basis.

May wins YL Discussion Meet, advances to AFBF finals

Caleb May, Christian County, will represent Illinois Farm Bureau in the Young Leader Discussion Meet finals at the 2014 American Farm Bureau Federation (AFBF) meeting Jan. 12-15 in San Antonio.

May won the 2013 state DiscusCaleb May sion Meet last week at the IFB annual meeting in Chicago.

“It was a lot of fun in the finals,” May said. “Everybody contributed equally.”

May had a lot of success in the event in previous years and broke through for his first win at the state level last week. It was his fourth consecutive appearance in the state finals.

“I think the experience factor plays into it quite a bit,” May said.

“Speaking in a room full of hundreds of people can be intimidating. It was for me my first year.”

May is a marketing adviser for Cargill. He and his wife, Kimberly, have a 16-month-old daughter, and they also help out on their fami-

lies’ grain and livestock operations.

The discussion meet is an exchange of ideas and information in which contestants — Young Leaders between the ages of 18 and 35 — must analyze problems and develop solutions in a cooperative manner.

May and three other finalists discussed how Farm Bureau should engage members, who represent all kinds and types of operations, to better promote agriculture and improve the industry’s image.

“We need to challenge our thinking in agriculture,” May said.

“We have to look at consumers also as customers. What they think really does matter.

“We also have to be salesmen, in a sense,” he continued. “We provide a value. We have to make sure (consumers) understand that.”

As winner of the Discussion Meet, May will receive $2,500 from Illinois Farm Bureau, use of a Massey-Ferguson MF8650 tractor courtesy of AGCO, and expense paid trips to the 2014 AFBF annual meeting and Young Farmer and Rancher Conference, the 2014 YL State Conference and the 2014 GROWMARK annual meeting.

The runner-up of the discussion meet was Brent Clair of Adams County. Other finalists were Landon Frye of Edgar County and Kim Redington of Jo Daviess 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.

Daniel Schmidt of Columbia (Monroe County) and Jacob Dickey of Gibson City (Ford County) will represent Illinois in the Collegiate Discussion Meet during the American Far m Bureau Federation Young Far mers & Ranchers Conference Feb. 7-10 in Virginia Beach, Va. The speaking duo received recognition last week at the Illinois Far m Bureau annual meeting in Chicago. They each received $100 and expense-paid trips to the IFB annual meeting and upcoming AFBF conference.

Schmidt and Dickey will compete Daniel Schmidt at the national meet for scholarships.

Schmidt, who won the state discussion meet, attends Southern Illi-

nois University-Carbondale (SIUC). He is studying animal science with specialization in animal production and a minor in agribusiness economics. He belongs to the SIUC Collegiate FFA. Dickey, Illinois discussion meet r unner-up, is a junior at the University of Illinois, Urbana, studying agricultural education and atmospheric sciences with an emphasis in math. He plans to teach high school agriculture.

He is a National FFA Organization ColleJacob Dickey giate Agriculture Ambassador.

The IFB Young Leader Committee sponsors the Collegiate Discussion Meet for college students pursing agriculture degrees.

Collegiate orators advance to AFBF meet

FarmWeek Page 10 Monday, December 16, 2013

IAITC honors top education volunteers Agriculture literacy leaders and volunteers with the Marshall-Putnam, Jackson and Kankakee County Farm Bureaus were named Illinois Agriculture in the Classroom (IAITC) volunteers of the year for 2013 at the Illinois Farm Bureau annual meeting last week in Chicago.

The honorees were Chuck Holz, Toluca, Marshall-Putnam Farm Bureau; Barbara Arbeiter, Murphysboro, Jackson County Farm Bureau; and Charlie and Joyce Grotevant, Pontiac, Kankakee County Farm Bureau.

Holz has been involved with the local AITC program for the last 10 years. He was a driving force in this year’s ImAGination Acres interactive exhibit, a national awardwinning Farm Bureau idea, at the county fair. Holz hosted exhibit construction in his shed, lent his carpentry and other skills for the project and provided some of the exhibit supplies. He helped transport and set Chuck Holz up the exhibit and took supervising shifts during the fair.

He also has helped with the annual Ag Extravaganza for area third graders and was instrumental in getting his local school to participate.

Holz helps with preparation

and clean up of the event.

Arbeiter has worked with the local AITC program for more than 20 years, including 10 years as chairman. She has been a driving force in the program that reaches between 3,500 and 5,000 students each year.

Arbeiter continuously explores new ideas and programs to keep the program fresh and learning fun.

Barbara Arbeiter She was instrumental in having an AITC booth with apple lessons at the local apple festival. A local apple grower handed out information and samples to festival visitors.

She is involved with many presentations to students and farm visits by local first graders. Many of her other Farm Bureau activities support ag literacy by raising money and distributing ag-related books and resources to schools.

The Grotevants were a driving influence in the creation of the Kankakee County Farm Bureau AITC Kids Day that started in 1999. They remain actively involved in the event that has reached more than 15,000 students.

Charlie served as president of the county Farm Bureau from 2002-10 and helped raise money for the local AITC pro-

gram. Local students were awarded more than $42,000 in scholarships. Both Grotevants made many classroom presentations not only to local classes but also to their adopted classroom in Chicago.

On the state level, Charlie and Joyce make a formidable team for AITC and the IAA Foundation. Charlie has been involved in the AITC Bike Ride fundraiser for 14 years, serving as co-chairman for four years. Joyce drives the equipment and support wagon during the rides. Charlie and Joyce have been involved in the IAA Foundation’s 5K run since 2011.

After retiring from their Kankakee County farm and moving to Pontiac, the Grotevants became involved in Liv-

Joyce and Charlie Grotevant

ingston County Farm Bureau AITC. Charlie volunteered at the IAITC Golf Outing in Pontiac and taught safety lessons at the Livingston County Farm Bureau safety camp for students in third through sixth grades.

Stein wins top crop adviser award James Stein, a crop adviser from Nashville in Washington County, was named the 2013 Illinois Certified Crop Adviser Award winner at the Illinois Farm Bureau annual meeting last week in Chicago. Stein became a certified crop specialist in 1986 and a certified crop adviser in 1995.

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.

James Stein For Gateway FS Inc., Stein advises more than 100 farmers who farm more than 50,000 acres in western Washington County. His focus is intensive management of wheat crops and has helped the county become one of the highest yielding counties in the state.

Stein is known for his efforts to help clients solve problems by researching information and for organizing numerous winter meetings to provide farmers with information about new technology.

For many years, he has conducted on-farm research trials to showcase new practices and technologies, including fungicide studies, nitro-

gen management systems, cover crop research and weed management.

For many years, Stein has been involved with researchers at Southern Illinois University, Carbondale, and has promoted the university’s Belleville research farm and its field days. Stein encourages his farmer clients to attend meetings about seed and crop protection products to learn about new products and practices.

He has helped many area farmers manage livestock manure nutrients and with their nutrient plans to protect local watersheds.

Stein has served as an information resource and a mentor to summer sales interns, many of whom later sought career guidance from him.

He also serves his community and local schools, especially by working with young people involved in sports. Since 2010, Stein has served as assistant coach for the Okawville High School varsity girls’ basketball team.

Before taking that role, he volunteered as a basketball coach for four other school teams over the years. He was a 4-H leader and served on his church council.

As the state’s top crop adviser winner, Stein’s name has been submitted for the international award by the Illinois Certified Crop Adviser Board and IFB.

Cathy Britts-Axen, left, a teacher at Central Middle School in Burlington, was named Illinois Agriculture Teacher of the Year by Illinois Agriculture in the Classroom at the IFB annual meeting in Chicago. Mary Zumwalt, right, a fourth grade teacher at Altamont Lutheran in Effingham County, was the runner-up for the award. (Photo by Ken Kashian)

Kane County teacher wins IAITC top award

A middle school special education teacher from Burlington in Kane County was named the Illinois Agriculture Teacher of the Year by Illinois Agriculture in the Classroom (IAITC). The award was announced at the Illinois Farm Bureau annual meeting last week in Chicago.

Cathy Britts-Axen, a teacher at Central Middle School, has integrated agriculture into her curriculum to help her students understand the importance of agriculture in their daily lives. She realized the importance of agriculture to her students after taking two summer agricultural classes at the Kane County Farm Bureau.

Britts-Axen helps her students focus on special topics, such as world hunger, and introduces them to agricultural careers. Her ag-related program has grown from a two-day lesson into a twoweek unit involving 300 eighth graders. Throughout the year, her students also participate in community service projects, such as volunteering with their parents at a local food bank.

Britts-Axen will be the Illinois nominee for the National Excellence in Teacher Agriculture Award and will receive a trip to the 2014 National Agriculture in the Classroom conference in Hershey, Pa. The runner up was Mary Zumwalt, a fourth grade teacher at Altamont Lutheran in Effingham County. Zumwalt incorporates agriculture information into her daily lessons, especially teaching students about sources of food and fiber.

Other finalists were: Diane Romoser, Chrisman, Edgar County; Lisa Corp, Freeport, Stephenson County; and Sandy Kissinger, Stillman Valley, Ogle County.

Jefferson County president honored for legislative work

Jefferson County Farm Bureau President John Kiefer believes when Farm Bureau members contact their elected representatives they not only benefit themselves, but the Illinois Farm Bureau too.

“If we call, we can make a difference by doing it. That’s why I call in,” he said.

Kiefer of Belle Rive was awarded an iPad for his legislative work on behalf of IFB. He received his award at IFB’s annual meeting in Chicago.

He was selected from among the eligible Farm Bureau members who responded to FB action requests and reported their legislative contacts as part of FB ACT (Farm Bureau Agricultural Contact Team).

Kiefer made several contacts throughout the John Kiefer year. Most recently he called about the Water Resources Development Act. In the back of Kiefer’s mind is a comment a legislator made several years ago. Each contact from a constituent represents seven others, he was told. Kiefer pointed out farmers are a small percentage of the population and need to make their opinions known on state and federal legislative matters.

Recently, Kiefer emphasized to fellow members that elected officials are “hired help ... and they should represent their constituents.”

Being honored for making contacts “caught me cold by surprise,” Kiefer said, with a laugh. He plans to put his new iPad to use saying, “Old Rover is going to learn new things.”

County Farm Bureaus recognized for outstanding program awards Page 11 Monday, December 16, 2013 FarmWeek

Thirty-two county Farm Bureau programs achieved the designation of “Most Outstanding Program” last week at the Illinois Farm Bureau annual meeting in Chicago.

Some of the winning programs already have been featured in FarmWeek or are the subject of upcoming features. The following summary provides a synopsis of one award-winning program in each of the eight categories.

The members, 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

“SPARK” Melissa Ochs, Richland County The Richland County Farm Bureau started an after-school program that sparked a new appreciation for agriculture.

An after-school Ag Science club named SPARK (Science, Physics and Agricultural Research and Knowledge) inspired junior high students to conduct interactive experiments while gaining valuable leadership experience.

“We wanted to give students a chance at hands-on learning with a leadership component,” Ochs said. “We partnered with the Farm Bureau and used many Ag in the Classroom ideas.”

Melissa Ochs The club met once a month and performed new ag science experiments each time, including some experiments with corn plastic and soy candles.

The club also elected officers, chose projects and provided services at a local nursing home. The club presented its activities during an end-of-the-year program for all parents.

“The students loved it,” Ochs said. “We wanted to empower them by giving them ownership (of SPARK).

It’s something they’re really proud of.”

A total of 25 students and two teachers participated in SPARK.

COMMODITIES & MARKETING

“Having and Using Technology Our Way” Terry Sturgell, Edgar County Communications technology has expanded so rapidly in recent years that some people may not know an iPad from an iPhone or that if they’re looking for help it’s likely “there’s an app for that.”

The Edgar County Marketing Committee came up with a simple but innovative solution to the information overload by offering a technology program.

“One board member had an app that everybody was interested in, so we got to talking and decided to get together and share them all,” Sturgell said.

Farmers were invited to the Edgar Terry Sturgell County Farm Bureau office to try out different pieces of technology including iPads, iPod Touches, iPhones, tablets and Droids.

The free event attracted 15 people and another 35 requested materials from the meeting. A meeting followup was added in the local county publication that circulates to more than 2,000 homes.

“It was a learning process from the word ‘go,’ ” Sturgell said. “We made a list of all the apps available in the office. It’s something everybody ought to try.”

Meeting attendees learned basic skills such as how to power the different devices and tips for using the devices.

They learned what apps are useful for farming, mapping, marketing and business organization.

The technology program likely will be offered in this and subsequent years due to its popularity and success.

HEALTH & SAFETY

“Rural Driving for City Students” Colby Hunt, McDonough County Most high school students probably will never drive a tractor as farmers make up less than 2 percent of the U.S. population, but they should have a general understanding of how farm equipment is operated and the dangers associated with it.

The McDonough County Farm Bureau addressed this rural safety need by developing a rural driving program for drivers’ education students.

“Not many kids have experience with farm equipment, so they don’t necColby Hunt essarily know what’s involved moving

from field to field,” Hunt said. “We wanted to show them and explain the dangers.”

The students in the program took a rural driving quiz, watched a rural driving public service announcement on YouTube and then they each boarded a tractor and grain cart provided by a local implement dealer, so they could “see what the farmer sees.”

The program was implemented each semester.

“I think (the students) learned a lot and they seemed interested,” Hunt said. “And it was good to come in and promote ag.”

The program was so successful Hunt believes it will continue in subsequent school years.

LEGISLATIVE/POLITICAL PROCESS

“Legislators and the Flood” Wayne Brown, Scott County The Scott County Farm Bureau took an active role last spring to organize efforts to minimize impacts of spring flooding and to keep state and federal officials abreast of the situation.

Farm Bureau members took Gov. Pat Quinn, legislators and other state and federal officials to the flood zone to give them daily updates and to ensure state and federal resources were focused on the flood fight.

“The flood came up, went down, and then came back up again in three weeks,” Wayne Brown Brown said. “We didn’t have much time to prepare, but we luckily were downstream enough we were able to fight it off.”

Farm Bureau members and numerous volunteers used lessons learned during the 1993 flood to prepare and deal with this year’s spring floods.

Walls of sandbags were put in place this spring and remained up until July.

Volunteers also used global positioning system equipment on tractors to calculate low areas most susceptible to floodwaters so they could prioritize sandbagging efforts.

“It was a very successful program,” Brown said. “I hope we don’t have to use it again.

COMMUNICATION & PROMOTION

“A Day at Petersen Farm” Jean Schiller, McHenry County McHenry County Farm Bureau members used the historic Petersen farm in the county to attract local consumers to bring their families for an interactive day of farm activities.

The program was held in June and had the theme “Got Milk” to coordinate with June Dairy Month activities.

“It used to be that 2 percent of kids were from farms, but I don’t think it’s even that anymore,” Schiller said. “A lot (of the local children) don’t even know where food and milk come from.”

The event featured cow milking, a petJean Schiller ting zoo, an open farmhouse and barn, a garden, kids’ activities, hayrack rides and food vendors.

“We taught kids how to milk a cow, they got to bottle feed calves, and we showed them how to make ice cream and butter,” Schiller said.

The one-day event drew 1,650 people and received press coverage in a local newspaper.

Advertising efforts and press coverage reached more than 40,000 people.

LOCAL AFFAIRS

“Zoning Ordinance 101” Josh Reagor, Massac County Updates to a zoning ordinance in Metropolis nearly had major implications for local farmers and landowners if not for the work of some fast-acting Farm Bureau members.

The Metropolis city council proposed expanding city zoning to a 1.5 mile radius around the town via extraterritorial jurisdiction (ETJ).

“It would have encompassed a lot of farm ground,” Reagor said.

Farm Bureau leaders contacted the mayor’s office and arranged a meeting for farmers and landowners to voice their concerns about the proposed ETJ. The city then adjusted its zoning ordinance proposal so the ETJ includes only properties that hook into city utilities, which essentially excluded farmland.

“We’re very happy (with the new proposal),” Reagor said. “As a Farm Bureau member, with how things can Josh Reagor affect agriculture, you can’t sit and let stuff happen. You have to be active and engaged.”

The zoning update as of last week awaited approval of the Metropolis city council.

The zoning/ordinance committee also agreed to allow two nonvoting members to represent ag interests in future discussions.

MEMBER RELATIONS

“Membership Advisory Committee” Ed Livengood, Carroll County Members of the Carroll County Farm Bureau developed an effective outreach program by combining an idea from an Illinois Farm Bureau Action Team member with the successful model of the Illinois Farm Families program.

Carroll County Farm Bureau leaders selected six associate members from a variety of backgrounds and provided additional information/education about Farm Bureau and the farming industry to develop allies and receive key feedback from the associate members.

“We saw the success of the Illinois Ed Livengood Farm Families program and wanted to do something similar,” Livengood said. “We wanted to reach (a variety) of people out there so we picked people in the county who are Farm Bureau members, but not necessarily farmers or related to farming.”

The six county Farm Bureau members chosen for the program attended two educational meetings and went on two rounds of farm tours to see crop planting, harvest and livestock farms, and to learn about issues associated with each sector of ag.

Surveys were sent out to the members after each meeting.

“Now that they met (local) farmers we asked, ‘what can we do for you,’” Livengood said.

The interaction between the Farm Bureau members surfaced a local hotel/motel board that is interested in working with Farm Bureau to plan future farm visits for tourists.

“I felt like everybody had a great time and they learned a lot,” Livengood added.

POLICY DEVELOPMENT

“Board Policy Development Exercise” Don Duvall, White County A fresh twist on policy development empowered members of the White County Farm Bureau board to become more active and engaged in the process.

Doug Anderson, White County Farm Bureau manager, divided the board into teams of three or four individuals to uncover the key issues most important to each member.

Each team then reviewed current Farm Bureau policy language on each of the issues and drafted new language to add or amend to each policy.

“They (the board members) have great Don Duvall ideas. We just needed to be able to bring those out,” Duvall said. “The fact that (the program) breaks (the board) down into small groups was very effective.”

White County in recent years submitted policy resolutions pertaining to key issues such as conceal carry in 2009, grain contracts in 2011 and hydraulic fracturing in 2012.

“Prior to this exercise, we had years we didn’t submit any policies,” Duvall said. “Since then, we’ve submitted one or multiple policy resolutions each year.”

Four resolutions for 2013 were developed out of this exercise.

FarmWeek Page 12 Monday, December 16, 2013

County Farm Bureau AWARDS PROGRAM ®

2013 Illinois Farm Bureau Annual Meeting

2013 PRESIDENTS AWARD WINNERS

2013 LIBERTY BELL WINNERS

Group I Group II Group III Group IV Group V -

Group I Group II Group III Group IV Group V -

Edwards CFB Edgar CFB Fulton CFB Randolph CFB Cook CFB

AWARDS KEY: G = Gold star S = Silver star B = Bronze star * = Completed projects no award.

County Farm Bureaus are recognized for achieving MEMBERSHIP QUOTA PROGRAM AWARDS recognize overall excellence in 8 Program Areas.

Scott CFB Edgar CFB Fulton CFB Randolph CFB Champaign CFB Will CFB

AWARDS KEY: G = Gold star S = Silver star B = Bronze star * = Qualified committee no award.

COMMITTEE AWARDS are presented to outstanding county Young Leaders, Women’s, and Prime Timers Committees.

MULTI-COUNTY PROJECTS AWARDS recognize county Farm Bureaus for excellence in working together with other counties to achieve program success.

Recognition is also given to County Farm Bureaus for years of CONTINUOUS MEMBERSHIP GROWTH – Voting and/or Total.

TOP 5 VOTING QUOTA COUNTIES: 1st Place - Bond, 2nd Place - Jasper, 3rd Place - Coles, 4th Place - Will, 5th Place - Lee

TOP 5 TOTAL QUOTA COUNTIES: 1st Place - Pope-Harden, 2nd Place - Jasper, 3rd Place - Coles, 4th Place - St. Clair, 5th Place - Stephenson

MOST OUTSTANDING PROJECTS AG LITERACY

HEALTH AND SAFETY

LOCAL AFFAIRS

MEMBER RELATIONS

Group I:

STARK Ag Education Made Fun For The Children’s Hospital RICHLAND SPARKS JACKSON Farm Tours For Tikes

Group I:

LAWRENCE RES Q-Tube Donations And Training MCDONOUGH Rural Driving For City Students KNOX Ag Safety Fund

Group I:

MASSAC Zoning Ordinance 101

Group I:

MASSAC Visual Membership Benefits

Group II:

Group II:

EDGAR Membership Madness Game Night CARROLL Membership Advisory Committee

BUREAU Farmer For A Day WINNEBAGO-BOONE Children’s Farm At Local Park District

Group IV:

MONTGOMERY Drinks For Drivers WILL Kids Safe Program

Group IV:

WAYNE Shale Drilling Fact-Finding Trip HANCOCK Conservation Cover Crops Display And Informative Seminar LIVINGSTON Ag 101 & Farmland Assessment Seminar COOK Two-Day County Staff Exchange

Group II: Group III:

Group IV: Group V:

Group II: Group III:

Group V:

Group III:

Group V:

Group III:

Group IV: Group V:

WHITESIDE Value Check CHAMPAIGN The Leadership Academy

COMMODITIES AND MARKETING

LEGISLATIVE/POLIj_CAL PROCESS

COMMUNICATION AND PROMOTION POLICY DEVELOPMENT

Group I:

MASSAC & PULASKI-ALEXANDER Equine Clinic EDGAR Having And Using Technology Our Way FULTON Feral Hog Informational Meeting STEPHENSON “Say Cheese” Tour

Group I:

SCOTT Legislators And The Flood PIKE Legislators And The Flood CARROLL FB ACT YouTube Video RANDOLPH AgMazing 500

Group I:

WINNEBAGO-BOONE Dairy Breakfast

Group V:

KANE Harvest “Leadership Picnic”

Group V:

Group II: Group III: Group IV:

Group V:

Group II: Group III: Group IV:

Group II: Group III: Group IV:

DOUGLAS & MOULTRIE Farm To Fork Series COLES You Wear Agriculture LEE Annual Farm Visit Day STEPHENSON County Ag Breakfast WHITESIDE Kitchen Incubator MCHENRY A Day At Peterson Farm

Group I: Group II: Group III: Group IV:

Group V:

EDWARDS M Member Surveys WHITE Board Policy Development Exercise HANCOCK Policy Development Through Local Radio Station BUREAU District Issues And Policy Discussion KANE Policy Formation

CROP REPORT

Page 13 Monday, December 16, 2013 FarmWeek

Ending stocks decline, but still above year-ago levels

BY DANIEL GRANT FarmWeek

USDA last week trimmed 2013-14 ending stocks by 95 million bushels for corn and 20 million bushels for beans compared to a month ago.

But the price outlook remained bleak compared to last year as ending stocks are well above year-ago levels.

USDA last week pegged 2013-14 ending stocks at 1.79 billion bushels for corn and 150 million bushels of beans compared to 2012-13 stock levels of just 824 million bushels of corn and 141 million bushels of beans.

Meanwhile, a large jump in

South America, while the U.S. bean crop is projected to be the third largest on record this year.

crop production around the world is expected to weigh heavily on the markets.

Record-large production is

expected this year and in coming months for U.S. corn, South American soybeans and Canadian wheat.

Large corn crops also are expected in the Ukraine and

“I don’t see a lot of opportunities right now in the grain market,” Peter Georgantones, market analyst with Roy E. Abbott Futures, said last week during a teleconference hosted

by the Minneapolis Grain Exchange.

“We’re stuck dead in the water in the corn market, and the wheat market was dealt an ugly blow to the downside (as exports are down 20 million bushels compared to last year),” he noted.

USDA lowered its season average farm price by a dime for corn and wheat. Corn prices are expected to range from $4.05 to $4.75 per bushel, while wheat prices were projected to hover between $6.65 and $7.15 per bushel.

The season average price for soybeans was raised 35 cents to a range of $11.50 to

Good, University of Illinois ag economist. “USDA estimates 2013-14 foreign production to be 46 percent larger than production in 200506.”

Durchholz believes the situation mirrors the 1970s to an extent as short crop supplies triggered a wave of U.S. crop exports and historically high prices early that decade before a production response and a run-up in interest rates deflated the markets by the 1980s.

“There are a lot of broad similarities to the 1970s,” Durchholz said.

The analyst didn’t predict another huge run-up in interest rates any time soon. However, he is concerned about the cost structure in ag if crop prices remain lower for a sustained period.

The U of I this fall projected the breakeven price for corn the last five years jumped from $1.67 per bushel to near $4.50 per bushel.

March corn the middle of last week traded 12 cents below the current breakeven level.

“This year a good problem

is we’ve got a lot of bushels to sell (which could offset some of the impact of lower crop prices),” Durchholz said.

But going forward, farmers will have to be more disciplined in their marketing programs to maintain profitability with tighter margins.

“We’ll still have rallies.

There will still be opportunities (to sell crops at profitable levels),” Durchholz told farmers. “You just need to be disciplined and take advantage of those opportunities. Those are the guys who survived the 1980s.” — Daniel Grant

‘I don’t see a lot of opportunities right now in the grain market.’

— Peter Georgantones Roy E. Abbott Futures market analyst

Did high crop prices cure high prices?

It appears the crop market in recent years did its job.

Tight supplies, which pushed crop prices to record highs, encouraged farmers around the world to boost production.

The result is much more comfortable corn and soybean supplies heading into 2014 compared to the previous two years and a less dynamic outlook for prices.

“High prices have done their job,” Dale Durchholz, AgriVisor senior market analyst, said last week at the Illinois Farm Bureau annual meeting in Chicago. “They encouraged people in the U.S. and around the world to increase what they produce.”

U.S. farmers this fall harvested the largest corn crop and third-largest soybean crop on record, according to current USDA estimates.

Record production also is projected for Canadian wheat and South American soybeans.

“The generally high corn prices since 2006 have stimulated an increase in foreign corn production,” said Darrel

Tuesday: • Ag Weather • Monica Nyman, St. Louis Dairy Council: healthy holidays • Chuck and Billye Titus, Calhoun County Farm Bureau: Adopt-A- Classroom Wednesday: • Mark Schleusener, National Agricultural Statistics Service: harvest wrap-up • Jim Bower, Bower Trading • Dave Carter, National Bison Association: bison industry future Thursday: • Illinois Soybean Associa-

tion representative • Laura Long, CPS-Agrium: inputs for fertilizer, chemicals and seed • Brian Burke, John Stewart and Associates/BABCO Trading: corn, soybeans and wheat • Dale Plumer, JBS United: winter outlook Friday: • Greg Fisher, Wild Blossom Meadery and Winery: mead wine industry • Ivan Dozier, Illinois Natural Resources Conservation Service To find a radio station near you that carries RFD Radio Network®, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”

$13.50 per bushel. USDA boosted its soy export estimate by 25 million bushels to 1.475 billion bushels.

“The soybean market is where all the dynamics are,” Georgantones said. “We’ve basically sold all our exports for the year. Old-crop (supplies) could remain tight.”

New-crop bean prices could be pressured in coming months, though, by a recordlarge South American crop and large plantings in the U.S. “South America is off to a really good start,” the analyst said. “(South American farmers) could produce almost 500 million extra bushels of beans than last year.”

Corn demand was a pleasant surprise in the latest report. USDA raised the amount of corn used for ethanol and corn exports by a total of 100 million bushels, which led to the reduction of ending stocks.

USDA will release its highly anticipated crop production report for the 2013 season on Jan 10.

PRODUCTION

FarmWeek Page 14 Monday, December 16, 2013

Energy prices projected to remain stable in 2014

BY DANIEL GRANT FarmWeek

Farmers planning for 2014 may want to consider locking in fuel purchases within the next few months.

Gasoline prices, which recently dipped into the $3 to $3.25 per gallon range, likely are close to a bottom for the year, according to Harry

Cooney, GROWMARK manager of energy customer risk management.

And prices next year are expected to be similar to 2013, suggesting prices will begin a seasonal climb around February or March.

The Energy Information Administration (EIA) recently forecast price aver-

GOT YOUR BID

Illinois State FFA Reporter August Schetter of Brighton in Jersey County signals a bid during the IAA Foundation live auction at last week’s Illinois Farm Bureau annual meeting in Chicago. The auction raises funds for the IAA Foundation, the charitable arm of the IFB, and for ag literacy programs. (Photo by Cyndi Cook)

ages of $3.50 per gallon for gas and $3.92 per gallon for diesel in 2013. EIA’s price predictions for next year are very similar at $3.43 per gallon for gas and $3.77 for diesel.

“The window of opportunity is open now,” Cooney told farmers last week at the Illinois Farm Bureau annual meeting in Chicago.

“This is when we typically bottom out (prices in the fuel market),” he continued. “It may not last an extended period of time. The seasonality (of the fuel market) says prices probably will go up into next year.”

Farmers haven’t seen much relief, though, for diesel and propane prices compared to gasoline.

That’s because the U.S. is exporting large quantities of diesel fuel around the world with big markets in Chile and the Netherlands.

“People say it doesn’t make sense to export diesel fuel,” Cooney said. “But the overseas markets are high enough to make it worthwhile.”

Meanwhile, the large corn harvest, subsequent big demand for grain drying this fall and increased heating demand prompted by arctic temperatures in recent weeks are weighing on propane prices.

Propane demand, at about 1.8 million barrels per day, was at a record in November, EIA reported.

“Propane stocks are at a low for this time of year since 1996,” Cooney said.

“What demand does for the next few months (depending on winter heating Harry Cooney needs) will make a big difference (for propane prices).”

A key reason why the energy market is expected to remain stable for the foreseeable future is the infusion of new oil supplies generated by the shale revolution.

The U.S. in November produced an average of 8 million barrels of oil per day, which is the highest monthly level since November 1988, according to EIA. “Crude oil stocks in the U.S. are at the upper end of the range,” Cooney said.

“But now demand has gone up as exports have gone up, so (the price of oil) hasn’t changed much the last three years.”

EIA recently projected U.S. crude oil prices will average $97 per barrel this year and $95 per barrel in 2014.

FDA targets antibiotic use on farms The Food and Drug Administration (FDA) last week announced a plan to phase out the use of certain antibiotics on livestock farms.

FDA will ask pharmaceutical companies to voluntarily stop labeling drugs used to treat human infections as acceptable for growth promotion in livestock.

If pharmaceutical companies agree to alter the labels on some antibiotics, prescriptions would be required to use the drugs for animal illnesses.

The biggest risk for the development of antimicrobial resistance is from germs spread in hospitals, but the Associated Press reported William Flynn, of FDA’s Center for Veterinary Medicine, said “we need to be selective about the drugs we use in animals and when we use them.”

The livestock industry, however, contends there is no scientific proof the use of antibiotics in animals reduces the effectiveness of antibiotics in humans.

In fact, limiting the use of antibiotics in meat production actually could lead to more sick pigs and negative food safety implications, Liz Wagstrom, chief veterinarian for the National Pork Producers Council (NPPC), previously told FarmWeek.

“There is a common misconception that antibiotics used in animals will show up in the meat sold at the grocery store,” NPPC noted on its website. “Animals treated with antibiotics go through a strict withdrawal period and must meet federal standards for antibiotic residue before the meat enters the food supply.”

The latest proposal wasn’t FDA’s first attempt at reducing antibiotic use in agriculture. In the spring of 2012, FDA proposed a similar plan that would curtail use of “medically important antibiotics” in food-producing animals.

GOVERNMENT

Page 15 Monday, December 16, 2013 FarmWeek

Congress expected to wrap up farm bill in January

BY MARTIN ROSS FarmWeek

Congress has declared yet another farm bill reprieve — this time, through January — as House-Senate ag leaders continue to hammer away at ag proposals.

Last week, the House approved a six-week extension of the current farm bill, but Senate Majority Leader Harry Reid, D-Nevada, rejected the idea, arguing another extension would relieve pressure to approve a new farm bill.

House Ag Committee Chairman Frank Lucas, R-Okla., and Minority Leader Collin Peterson, D-Minn., nonetheless indicated they would work through December to iron out details with their Senate farm bill con-

ference counterparts, ideally toward mid-January passage.

“The farm bill needs to pass,” House conferee Rodney Davis, R-Taylorville, told FarmWeek at Illinois Farm Bureau’s annual meeting in Chicago. Davis remained optimistic a bill would move early in 2014, citing “a lot of people working behind the scenes” to finalize a conference framework.

Major media resurrected the specter of $6- to $8-per-gallon consumer milk prices under 1949 “permanent” farm support provisions statutorily set to kick in Jan. 1 in the absence of a new farm bill. That fear was a key driver in last January’s 2008 farm bill extension. However, National Milk Producers Federation spokesman Chris Galen deemed

Davis: Congress has ‘no desire’ for a shutdown

Congress could be close to a deal that would avert another fiscal crisis in January.

The House last week passed a budget deal that would reduce the federal deficit by roughly $85 billion over 10 years without raising taxes and allow Congress to return to its regular congressional appropriations process.

The agreement, crafted by Rep. Paul Ryan, R-Wis., and Sen. Patty Murray, D-Wash., would protect military spending, raise the level of discretionary spending over the next two years and replace $63 billion in scheduled automatic short-term cuts from the so-called budget “sequester.”

Despite bipartisan concessions — or, in some cases, because of them — Illinois Farm Bureau National Legislative Affairs Director Adam Nielsen anticipates resistance from far right Republicans and Democrats unhappy that the plan did not include an extension of unemployment benefits.

However, Nielsen sees a broader will toward avoiding a repeat of October’s congressional stalemate and what outgoing IFB President Philip Nelson termed another “fiscal cliff debacle” just as lawmakers prepare to debate another increase in the federal debt ceiling.

U.S. Rep. Rodney Davis, R-Taylorville, agreed at Illinois Farm Bureau’s annual meeting last week in Chicago.

“I don’t think the House has any incentive nor desire to have another government shutdown,” he told FarmWeek.

“We’ll be able to pass common sense legislation the Senate should agree with and the president should sign. But I’d rather have a big agreement; I’d rather have a budget agreement.

“We’ve only had three conference committees the entire time I’ve served — the budget conference committee that’s going on right now, the farm bill conference I’m on right now and the (Water Resources Reform and Development Act) committee I’m on right now. We ought to be able to walk and chew gum at the same time.”

Nelson also sought long-term fiscal solutions. In his final president’s address, he argued budget deficits, U.S. debt and “established” entitlement programs “are squeezing out available funds for government services and investment in research and infrastructure to build our future.”

The U.S. national debt stands at $16.74 trillion — a 55 percent increase over the last four years that slightly exceeds the national gross domestic product. Nelson cited a Harvard study that estimates U.S. taxpayers each would have to pay $106,000 to pay off the national debt.

“Instead of developing a long-term approach to address our debt, we move from crisis to crisis, with stopgap approaches along the way,” he said. — Martin Ross

that prospect unlikely, at least for the near future. “(U.S. Ag Secretary Tom) Vilsack has said that as long as it looks like Congress is moving toward a final vote on the farm bill, USDA’s not going to move expeditiously to implement per-

relevant since 2009” and that the countercyclical Milk Income Loss Contract program, which expired Sept. 30, would not pay out amid current high farm-level prices.

Galen nonetheless argued lawmakers “need to have the

political need to construct a two-tiered revenue/price protection safety net and thus the limited dollars available for “shallow loss” revenue protections for corn, soybean and wheat producers.

Senate proposals to reduce

‘The farm bill needs to pass.’

— U.S. Rep. Rodney Davis Taylorville Republican

manent law as it relates to supporting dairy prices,” Galen told FarmWeek.

“Theoretically, it could happen, but from a practical standpoint, I don’t think Vilsack’s going to want to stir up the political hornet’s nest right after Christmas.”

Galen said the dairy sector can withstand another six weeks without a farm bill. He reported the expired federal dairy price support program “has not been

pressure of permanent law looming in the background.”

The House’s current farm bill proposal would eliminate the 1949 law as a fallback, raising producer concerns about Congress passing a future farm bill.

Meanwhile, outgoing IFB President Philip Nelson reiterated the need for conferees to preserve a strong crop insurance program. In Nelson’s view, that’s “probably the best we can hope for,” given the

crop premium subsidies for farms with $750,000-plus in annual adjusted gross income “have to be grappled with,” he added. Nelson deemed the move “the first shot over the bow” toward insurance “means testing” and subsequent erosion in program participation.

“Politics have entered into this big time, and I just hope we can get some resolve to this soon,” Nelson said.

ANNUAL MEETING

FarmWeek Page 16 Monday, December 16, 2013

CHICAGO STUDENTS LEARN AG ABCs

JUST DUCKY

Tazewell County Farm Bureau’s trivia team members left their duck blind to capture the Trivia Contest spirit award at the Illinois Farm Bureau annual meeting last week in Chicago. A team of former Illinois Farm Bureau board members and spouses answered the most questions correctly, while the staff spirit award was won by a team comprised of Governmental Affairs & Commodities, Member Services & Public Relations, and News & Communications divisions staff. The event raises money for the IAA Foundation and ag literacy programs. (Photo by Cyndi Cook)

Calhoun County farmer Chuck Titus answers questions from fourth graders at St. Helen’s Grade School in Chicago during an Adopta - C l a s s r o o m v i s i t l a s t w e e k . Ti t u s a n d h i s w i f e , B i l l y e , o f Kampsville, accompanied by county Ag in the Classroom Chair Jane Brangenberg and Co-chair Ruth Johnson, conducted an ag trivia contest and read books with the students. Calhoun County Farm Bureau adopted the class two years ago. (Photo by Calhoun County Farm Bureau Manager Brenda Bizaillion)

CSP applications due to NRCS by Jan. 17

The Natural Resources Conservation Service (NRCS) is accepting new applications through Jan. 17 for the Conservation Stewardship Program (CSP) for federal fiscal year 2014.

The CSP is a farm bill con-

servation program that helps established conservation stewards enhance their natural resource management.

While local NRCS offices accept CSP applications year round, NRCS evaluates applications during announced ranking periods.

To be eligible for this year’s enrollment, farmers must submit applications to NRCS by the closing date.

A CSP self-screening checklist is available to help farmers determine if CSP is suitable for their operation. Learn more by visiting the NRCS website {il.nrcs.usda.gov} or contacting the local NRCS field office.

Through CSP, farmers receive payments for installing conservation practices to improve soil quality, soil erosion, water quality, water quantity, air quality, plant resources, animal resources and energy.

Some popular practices used

by Illinois farmers include: • Use of drift-reducing spray nozzles, low pressures, lower boom height and adjuvants to reduce pesticide drift; • Plant tissue testing and

analysis to improve nitrogen management; and • Planting of cover crops to reduce soil compaction or use residual nitrogen.

U of I Extension educator named to USDA committee

Deborah CavanaughGrant, University of Illinois Extension local food systems and small farm educator, was selected by USDA Deputy Secretary Krysta Harden to serve on the USDA Advisory Committee on Beginning Farmers and Ranchers, according to Illinois Farm Service Agency State Executive Director Scherrie Giamanco.

The advisory committee will advise U.S. Agriculture Secretary Tom Vilsack on opportunities to help beginning farmers and ranchers succeed.

Committee members will provide public and industry perspectives on USDA strategies, policies and programs relevant to beginning farmers and ranchers.

FROM THE COUNTIES

Page 17 Monday, December 16, 2013 FarmWeek

Maine farmer grows vegetables year-round

Specialty Crops Conference

BY KAY SHIPMAN FarmWeek

Eliot Coleman’s unheated greenhouse system defies conventional wisdom and shelters vegetables year-round in Maine.

“Outside in the winter it’s Maine and inside (the greenhouse) I’m in New Jersey (temperatures). I put my hand under a (fabric) layer and my hand’s in Georgia,” Coleman told FarmWeek. His farm, located on the last three miles of an unpaved road, is situated 90 minutes west of Bar Harbor and Acadia National Park.

A nationally known vegetable and herb grower and author, Coleman will give the keynote address Jan. 9 at the Illinois Specialty Crops, Agritourism and Organic Conference in Springfield. The early registration deadline is Dec. 27.

Coleman rejects the idea Illinois winters won’t allow yearround vegetable production in an unheated greenhouse.

Maine’s depth of frost penetration measures 48 inches. The northeast state boasts 150 days of below-freezing temperatures — and Coleman harvests baby leaf lettuce and spinach.

A “second layer” of spunbound fabric about 1 foot above his greenhouse beds provides additional insulation, Coleman explains. He admits the greenhouse air is frosty on

Entries sought for cider contest

Illinois apple cider makers will compete in the 25th Annual Cider Contest and the 12th Annual Hard Cider Contest during the Illinois Specialty Crops, Agritourism and Organic Conference Jan. 8-10 in Springfield’s Crowne Plaza.

Contest registration will be Jan. 9 from 8 to 9:45 a.m. with judging at 10 a.m.

The contest is sponsored by the Illinois State Horticulture Society.

Illinois contestants will compete against other in-state producers for Illinois awards. They also may submit their best ciders to compete against outof-state entries for the North American and Midwest Awards.

The fee is $10 per entry for each contest. One entry per orchard and/or farm family.

Winners will be announced during the Jan. 9 banquet.

Entry forms are online at {specialtygrowers.org/iscaocconference.html}.

For more information, contact Elizabeth Wahle, cider contest coordinator, at wahle@uiuc.edu or 618-3444230.

an early January morning, but by 10 a.m. “a perpetual spring” exists beneath the layer.

Coleman carefully selects the crops he grows during the winter, choosing hardy ones.

“Baby leaf lettuce — the young leaves can freeze and thaw and not be hurt,” he says.

“The best crop to start with is spinach, a cold-season crop.”

Coleman plants his spinach in mid-September, starts harvest in mid-November and continues harvesting until March. “It can’t go to seed because the days are too short,” he adds.

In addition to his growing systems, Coleman will discuss his farm stand and 13-acre

farm that started in 1968 with 3 inches of topsoil filled with rocks and covered in spruce and pine trees. “The fact we can turn it into a profitable farm is a great story,” he said.

The conference will be Jan. 8-10 at the Crowne Plaza, Springfield. The event will start at 10 a.m. Jan. 8 with pre-conference workshops and continue with breakout sessions through Jan. 10.

For more information or to download and print a registration form, visit {specialtygrowers.org} and click on the “Conference & Trade Show” icon on the right side. After Dec. 27, on-site registration will be available.

C

OOK — Farm Bureau will sponsor a trim-thetree contest. Participants must purchase a fresh Christmas tree from a participating Farm Bureau tree stand, trim it, photograph it and email a picture of it with an entry form to membershipdebbie@cookcfb. org. A list of Farm Bureau tree stands and entry forms are available at {cookcfb.org/Buy-Local/Programs}. Deadline for public voting is Wednesday.

• Members may purchase discounted tickets to the Chicago Wolves on selected dates. For more information, visit the Members Only section of {cookcfb.org}.

ERMILION— Farm Bureau will co-sponsor the Illini Farm Toy Show from 5 to 9 p.m. Jan. 3, 9 a.m. to 5

V

p.m. Jan 4 and 9 a.m. to 2 p.m.

Jan. 5 at The Holiday Inn and Convention Center in Urbana.

For more information call Kurt Wolken at 217-202-2730.

ABASH — Farm Bureau and COUNTRY Financial will sponsor a holiday open house from 11 a.m. to 1:30 p.m. Wednesday at the Farm Bureau office.

• Farm Bureau and COUNTRY Financial will collect items for Wabash Area Development Inc. during the holiday season in honor of Dale Loveless, past COUNTRY Financial agent.

Items needed include winter wear, household items, personal hygiene items and nonperishable food. Cash donations are welcome. Deadline is Friday to place all donations under the Christmas tree in the Farm Bureau office.

W

This program is overflowing with the resources you need to grow your business and your profits.

January 8 Pre-Conference Workshops 1) 2) 3) 4)

Pumpkin Production, Pest Management, and Marketing Season Extension and Year-Round Markets GAPs and Food Safety Guidelines for Growers Who Sell at Farmers Markets Optimizing Plasticulture and Drip Irrigation Practices; and Growing Unique Fruits & Vegetables

January 9 - 10 Conference Tracks © Fruit © Vegetables © Herbs © Agritourism/Marketing © Organic Production © Business Management

Highlights © Business Management sessions to include: - Farm to School - Labor and Legal - Risk Management and Insurance - Health Care for Employees - Heat Stress Prevention

© Annual Cider Contest © Thursday Evening Banquet © 60-Booth Trade Show January 9 Keynote: Eliot Coleman, author, TV host, owner of a year-round farm market will kick off the conference on how to create a thriving farm market.

For more information: 309-557-2107 or dhandley@ilfb.org Go to www.specialtygrowers.org for full agenda

PROFITABILITY

Effects of cool, wet conditions on corn FarmWeek Page 18 Monday, December 16, 2013

Seed placed in a cool, moist environment will soak up (imbibe) moisture, even though it may not be warm enough to trigger germination.

Some damage to cell membranes inevitably occurs during this process.

Some of the early damage that occurs due to cold Kevin Black water imbibition is irreversible.

However, if warm soils allow the seed to germinate rapidly and the seedling conBY KEVIN BLACK

in increased disease infection, distorted seedling growth or increased herbicide injury.

Finally, soils early in the season have a greater temperature variation with depth and field location. Slight variations in soil temperature can have large effects even on crop emergence.

The best crop stands are created when soil temperatures are consistently at or above the minimum for germination and growth with a positive 10-day forecast.

tinues rapid growth, the developing corn seedling often can repair the early damage and escape problems from invading pathogens. Conversely, if growth is slowed from cool conditions, the pathogens have the advantage.

A similar situation exists for crops that successfully emerge and begin growth, only to be slowed by a later period of cool and/or cloudy weather.

Root and stem pathogens find this to be ideal conditions for infection. Actually, any type of stress that slows growth or diverts resources away from growth can cause increased disease infection.

Another common effect

associated with chilling injury of corn seed and seedlings is distorted growth. Corn seed that imbibes cold water often will exhibit various types of distorted growth. The most dramatic effect is to have the coleoptile shoot curl back on itself or just grow in the wrong direction. Research has shown that wide swings of approximately 30 degrees Fahrenheit in day-night temperatures also can cause distorted growth.

Herbicides also can injure corn seedlings that are in cool, moist soils. A seed that germinates and grows rapidly usually can avoid a selective herbicide’s harmful effects by metabolizing and breaking

down the product.

However, if emergence and growth are slowed by cool soil or air temperatures, the seed/seedling can be unable to effectively metabolize the herbicide, which then becomes injurious.

Following corn emergence, a period of rapid growth allows equally rapid uptake of the selective herbicide. If a period of slowed growth intervenes, this can cause increased crop injury.

The risk associated with early planting is not only from reduced germination in cool soils. There is additional risk that early-season variable growing conditions may result

Kevin Black is GROWMARK’s insect and plant disease technical manager. His email is kblack@growmark.com.

Farm groups probably were not surprised when the study confirmed the drought, or any event that causes a disruption to river transportation services, has a significant impact on agriculture.

The U.S. Army Corps of Engineers kept the river open last year by blasting rock formations on the Mississippi River between St. Louis and Cairo, but barge traffic was slowed and carrying capacity was reduced due to low water levels.

Freight rates on the river subsequently shot to record

highs, according to Ken Eriksen, senior vice president of Informa Economics.

“Infrastructure problems lead to inefficient, lower transportation capacity and lower farm returns,” Eriksen said last week at the Illinois Farm Bureau annual meeting in Chicago. “Infrastructure impediments get back to the farm gate very fast.”

The study found freight rates on the river increased 111 percent while operational costs skyrocketed 180 percent. Meanwhile, the time to move fertilizer upstream from the Gulf to St. Louis increased by 15 days.

Unit trains used to transport fertilizer boosted shipping costs by 15 percent, according to the study. The premium to switch from barge to rail for grain shippers was about 45

cents per bushel.

“We lost market opportunities around the world (during the river slowdown),” Eriksen said.

The issue hasn’t been solved as the U.S. Army Corps of Engineers soon will begin additional work on the Mississippi River at Thebes to remove rocks that pose a threat to navigation during low river stages.

The interruption of barge traffic last year also served as a prime example of what could happen if a lock and dam fails, Eriksen said.

“How do we prepare ourselves if we have another failure (on the Mississippi waterway)?” he questioned. “Locks and dams are on life support and there’s no contingency plan (if a lock fails on the Mississippi or Illinois Rivers).”

Many of the locks and dams have surpassed the original life expectancy. And there currently is about $585 million worth of deferred maintenance on the structures, noted Eriksen, who called the current river system “susceptible” to a failure.

An efficient river system is expected to be even more important in the future as U.S. farmers grow bigger crops to feed growing world demand.

About 50 to 60 percent of crops exported from the U.S. currently are shipped through the Gulf.

“We can grow it, but if we can’t get (commodities) into the markets then it doesn’t mean anything,” said Larry Hasheider, ICMB chairman, who urged Congress to approve funding for upgrades to the lock and dam system.

Study highlights rivers’ role in farm profitability

BY DANIEL GRANT FarmWeek

The economic shutdown of the lower Mississippi River system last year at the peak of the drought was a wake-up call about the importance of efficient river transportation to agriculture, according to a study.

The Illinois Corn Growers Association, Illinois Corn Marketing Board (ICMB) and other farm groups organized an impact analysis conducted by Informa Economics of the low water event that occurred in 2012.

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $38.00-$81.56 $50.67 40 lbs. (cash) $82.00-$89.00 $86.98 Recipts

This Week 77,130 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 90,470

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

SWEET PARACHUTE LESSON

(Prices $ per hundredweight) This week Prev. week Change $78.32 NA NA $57.96 NA NA

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

This week $130.00 NA

Prev. week $131.99 $131.99

Change -$1.99 NA

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) Prev. week Change This week $167.80 $165.79 $2.01

Lamb prices Slaughter Prices - Negotiated, wooled and shorn, 125-170 lbs. for 130-174 $/cwt. (wtd. ave. 155.37), wooled and shorn 170-180 lbs. for $150/cwt.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 12/05/2013 60.4 19.8 40.2 11/28/2013 55.0 15.5 36.1 Last year 48.5 14.3 8.1 Season total 703.4 678.9 361.3 Previous season total 654.1 475.7 217.4 USDA projected total 1450 1100 1400 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Schuyler County Farm Bureau leader Kent Prather helps kindergartners at Chicago’s St. Mary’s Star of the Sea School with their Tootsie Roll parachutes last week. During a visit to the county’s adopted classroom, Kent and Sandy Prather also taught corn and soybean lessons to Laura Gersch’s class. Sandy read “Christmas from Heaven,” and students learned their candy is sweetened by corn. They also learned about other products made from corn. Each student received a Schuyler County Farm Bureau T-shirt. (Photo by Kelly Westlake, Schuyler County Farm Bureau manager)

PROFITABILITY

Page 19 Monday, December 16, 2013 FarmWeek

CASH STRATEGIST

Chinese soybean purchases in focus

Much has been made in recent weeks about the possibility Chinese businesses may have overbooked soybean needs, and may end up reselling or cancelling a portion of those purchases. Given the way the soybean market is currently structured, it’s not difficult to see the possibility they have overbooked soybean imports.

It’s lost on many that China has been a heavy importer of soybeans starting last May. They not only recorded two back-toback record import months in June and July, but total summer imports were a record by a huge margin. Part of that was a function of the need to rebuild inventories that had been depleted by the tight supply in the U.S., and the slow start to the South American harvest.

But this last summer, Chinese imports were 4.5 million metric ton (mmt) larger than they were a year ago. And this came at a time in which compound feed production declined from the previous year because of production problems in hogs, eggs and poultry. Through the first nine months of 2013, feed output dropped 9.4 percent.

That argues the heavy import pace was tied to stocks rebuilding, not just consumption. In fact, recent indications suggest port inventories have risen to the 5 to 6 mmt level. That’s not huge, but not tight either.

None of this accounts for shipments on the way. In November, preliminary figures indicate the U.S. shipped 6.2 mmt to China. That’s an annual consumption equivalent to 74 mmt, more than they are expected to import this year.

Hence, it does look like Chinese crushers are adequately covered for now. As it stands, they have 10 mmt of soybeans on the books they have not yet shipped from us. There’s another 5.2 mmt sold to unknown destinations, most of which is thought to be China. Even at a 5 mmt import pace, that’s equivalent to nearly three months.

The big issue that will determine whether resales/cancellations will occur will be the pace of early Brazilian harvest. Last year, it was slow to start, allowing only 1.2 mmt to be exported in January/February. But two years ago, they exported nearly 2.6 mmt, with March 2012 exports 700,000 metric tons larger than last year’s.

Weather permitting, Brazilian harvest is expected to start Jan. 1, hitting “full stride” midmonth. If that occurs, the odds of cancellations will rise.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

Corn Strategy

ü2013 crop: Even though prices held firm, the overall action still suggests lower levels ahead. The bottoming process has started, but the actual low still hasn’t been seen. Use rallies for making sales to cover cash flow for the next five to seven weeks. ü2014 crop: There are many reasons to expect corn prices to go lower, but the 20-week cycle should bottom in the next month, and maybe not much lower than current levels. At some point this winter/spring, expect to see December futures trade above $4.75. vFundamentals: The surprise on the December supply/demand report was the upward revision in the forecast for this year’s ethanol grind.

The 4.95 billion bushel projection represents a 300 million bushel improvement over last year. But even though total use was raised 100 million bushels from last month, a 1.79 billion bushel ending stocks is large.

And generally, the trade thinks the production forecast will be revised up in January.

Cents per bu.

Soybean Strategy

ü2013 crop: The size of the long position held by the big trading funds may be one of the bigger risks prices face over the next few weeks. With the end of the year looming and lower prices looking probable because of South America, big trade funds should be prone to taking profits. These are still good prices to get sales up to recommended levels. ü2014 crop: Even though we are generally short-term bearish for prices, new crop prices don’t have nearly the downside risk as nearby ones. Prices should have more sustained strength once they turn up out of the coming cycle low. The situation doesn’t warrant chasing prices lower at this time. vFundamentals: Even as China continues to buy soybeans from us, talk about reselling and/or cancellations persists. And there is reason to think they may have overbooked soybeans to prevent a supply disruption in case the South American harvest gets off to a slow start. But crop

progress in Mato Grosso, Brazil suggests harvest could begin in early January.

Wheat Strategy

ü2013 crop: The new USDA supply/demand numbers weren’t a surprise, but the U.S. is losing out on export business to other countries.

And generally, export business is slower this time of year. We expect prices to slip a little lower, but the 20-week low should be close in terms of time and price. Hold off sales for now. ü2014 crop: Even though prices could drop lower in the short term, we expect to see

better marketing opportunities in winter/spring. vFundamentals: The new USDA supply/demand forecasts only reinforced the implications of the previous week’s production estimates from Canada and Australia. In essence, a comfortable supply situation became a little more comfortable. At the same time, large exportable supplies in other countries are pulling business away from the U.S. Winter crops around the world are in good shape, but it’s rare to go through a winter without a weather scare somewhere.

PERSPECTIVES

FarmWeek Page 20 Monday, December 16, 2013

Long live the soil: Saluting the resource that sustains us

Too often, it’s treated like dirt.

But our living and life-giving soil is finally getting some of the respect it deserves. The United Nations’ Food and Agriculture Organization celebrated World Soil Day on Dec. 5 in Rome, Italy.

Under the framework of the Global Soil Partnership, the event is held each year with the goal of raising awareness of the importance of healthy soils for food security, ecosystem functions and sustainable IVAN DOZIER development.

Understandably, it’s easy to take soil for granted because it’s mostly hidden from view — and few who live off the farm have reason to give it a second thought.

Yet this amazing resource is responsible for nearly all life on the planet.

Fortunately, scientists, conservationists and farmers increasingly recognize that keeping our soil healthy and functioning is the key to our survival.

Here in Illinois, the Natural Resources Conservation Service and our conservation partners are working directly with private landowners to improve the health of the soil on our working lands. And by improving the health of the soil, we also are improving the health and vitality of our farms, families and communities.

This renewed focus on soil health has created an exciting new revolution in American agriculture as farmers, ranchers and other landowners increasingly are making their land more productive and sustainable through soil health management systems.

Although all farming operations are different, most can benefit from keeping the soil covered as much as possible, disturbing the soil as little as possible, keeping plants growing throughout the year to feed the soil and diversifying plants as much as possible using crop rotation and cover crops.

By improving soil health, Illinois’ agricultural producers can harvest benefits on and off the farm, including increasing farmland sustainability and resilience, improving water and air quality, providing wildlife habitat and reducing flooding.

World Soil Day serves as a reminder to us that we owe our existence to the soil.

As we face mounting global production, climate and sustainability challenges, I believe there is no better time to work hand-in-hand with Illinois farmers and ranchers to improve the health of this critical living resource. The promise of our future depends on it.

Ivan Dozier is state conservationist for the USDA Natural Resources Conservation Service in Illinois.

Reports, events fuel economy reactions Throughout the year, the U.S. government releases batches of economic data, giving armies of economists and market strategists information upon which they can base their forecasts and upcoming market guidance.

Sometimes these releases fall on deaf ears. Recently, they DEREK VOGLER have been closely watched and traders place their bets as soon as the data comes out.

These reports, perhaps more than ever, are thought to provide insight as to what action the Federal Reserve will take regarding the Quantitative Easing (QE) program. When the September employment report came out weaker than expected, investors cheered because they assumed this would mean a continuation of QE for at least another few months.

October’s employment report came in much stronger than expected. Interestingly, investors cheered again, this time because the economy was improving at a faster pace than previously thought so the Federal Reserve could begin to wind down the QE program more quickly.

No, you don’t have to re-read the two previous sentences. In both cases, the stock market rallied, first when bad news was good for the market and later when good news was good for the market. Sometimes this is a strange business.

The U.S. nonfarm payrolls for October suggested labor markets were beginning to heal prior to the government shutdown. The reported figures of 204,000-plus were much higher than the forecast 125,000-plus. In addition, the prior two months were adjusted up more than 60,000.

While on the surface those results appear relatively good, the distortion from the government shutdown and the impact on November’s figures are yet to be fully determined.

Some of this impact was seen on the unemployment rate that ticked up to 7.3 percent during the month. As the markets contemplate the Fed’s next move, it’s important to remember that the stated policy is predicated on achieving a long-term unemployment rate below 6.5 percent. Until that level is reached, it has hinted that actions will be highly accommodative.

Other economic releases continue to paint a mixed picture about the strength of the U.S. economy.

In the latest statement by the Fed, it highlighted consumer and business spending as showing some strength prior to the government shutdown, but also noted that factory orders and housing have slowed. Overall, the messages conflict and suggest a continued cautious approach from the Fed. The good news is that inflation remains subdued at 1.2 percent. Since the other stated objective is to achieve a 2 percent inflation rate, the Fed should have plenty of flexibility to either extend the QE program or keep rates low for longer.

The other big November news was the long-awaited rollout of the Affordable Care Act, also known as Obamacare. Initial demand for the new, government-sponsored coverage seemed to exceed expectations, but then website problems developed. In addition, reports of thousands of individuals being dropped from their existing plans forced some government officials to issue public apologies. Ultimately, all of these problems could be a big deal for U.S. consumers and businesses as it could re-ignite uncertainty about the law.

Business owners and managers alike need to understand the rules or the tendency is to delay hiring decisions for another time. In an environment where significant economic growth remains elusive, this could be another obstacle for the continued recovery.

Derek Vogler is vice president of investments at COUNTRY Financial.

“That’s Java with cream and that’s Dee Calf.”