FarmWeek December 24 2012 by Illinois Farm Bureau

Santa haS hiS oWn rules of the road this holiday season — with a little help from Kevin Rund, Illinois Farm Bureau senior director of local government. .....6

the Winter Wheat crop in Illinois g enerally is in good shape as the recent colder weather forces it into dormancy, but that’s not true in all areas. .....7

a Free neW phone application, Ag Career Finder, offers information about 58 careers in ag riculture, food, and natural resources. ...........................................8

Monday, December 24, 2012

Two sections Volume 40, No. 51

Durbin: House has ‘no excuse’

Fiscal ‘Plan B’ withdrawn; no farm bill plan?

BY MARTIN ROSS AND RITA FRAZER FarmWeek

Periodicals: Time Valued

Farmer hopes were rapidly waning Friday as the House’s latest “fiscal cliff ” tax deal fell through and a 2012 farm bill seemed ever more unlikely. House Republicans last week agreed to raise tax rates in exchange for key presidential concessions on entitlement

reform and spending. However, both a larger compromise and a subsequent “Plan B” touted by House Speaker John Boehner (RRep. John Ohio) fell apart Shimkus before they could reach the floor. Boehner said it was now up to Senate Majority Leader Harry Reid (D-Nevada) and President Obama to develop an agreement. Collinsville Republican Rep. John Shimkus deemed Plan B’s failure “unfortunate,” arguing its tax provisions were “about as good as we were ever going to get.” The plan would have extended the existing $5 million individual estate tax exemption indexed to inflation, at a continued 35 percent tax rate, and held the line on capital gains rates. The estate tax rate will jump to 55 percent with a $1 million individual trigger Jan. 1 barring 11th hour action. Shimkus said he was

ready to support the plan, arguing compromise tax increases for the highestincome Americans were an acceptable tradeoff for Sen. Dick Durbin preserving middle-class tax relief measures. As of Friday, he was uncertain lawmakers could resolve fiscal issues in the remaining two days of the congressional calendar. He noted the House had approved extension of key expiring tax provisions in August, and criticized Reid (DNevada) for failing to at least pick up on House proposals. The Illinois Republican also said he is frustrated by a lack of House action on a farm bill. Earlier in the week, a Boehner aide argued “we can’t drop a farm bill in the middle of whatever is negotiated,” suggesting adding a 1,000-page bill to a deficit deal “will just make our vote situation harder.” Shimkus said he sees long

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odds on winter passage of a new five-year farm bill, but was “prayerfully optimistic” about the possibility of a near-term, one-year extension of 2008 farm bill provisions early in 2013. “Let’s fight (the farm bill) out,” he told FarmWeek Friday. “Have the vote, force us to defend why we voted yes or no instead of just pulling the danged bill or not even allowing it on the floor.” Shimkus said he was uncertain whether the next Congress might retroactively extend expiring tax provisions. Sen. Dick Durbin, a Springfield Democrat, was angered by a lack of farm bill action. Last summer, the Senate passed its version of the measure, proposing to eliminate direct payments, establish a new farm safety net, and trim nearly $4 billion in “food stamp” administrative spending. Durbin is an advocate for strengthening federal food safety capabilities — a key focus of ag research/USDA program proposals under 2012 farm bill proposals. The senator noted

“how vulnerable we are in so many areas,” and argued “we need the inspectors on the job,” warning failure to move farm legislation could lead to cutbacks in USDA personnel. “There’s no excuse — we passed a farm bill in July,” Durbin told RFD Radio. “This farm bill was bipartisan, it was agreed to and supported by every major agricultural group, and it saved more than $20 billion in deficit reductions. “The House never called a farm bill for a vote. We need to pass this farm bill; we should do it before the end of the year. The alternatives are terrible. If we don’t pass a farm bill, we go back to 1949 law that’s so archaic it’s a joke.”

No FarmWeek next week There will be no FarmWeek published next week. FarmWeek is published 50 times a year, with no issues on the Mondays following Thanksgiving and Christmas. The next issue you receive will be dated Jan. 7.

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

FarmWeek Page 2 Monday, December 24, 2012

Quick Takes SHOCKING ASIAN CARP NOT SAFE — A Purdue University scientist reported using lowvoltage electrical barriers is an impractical way to control or eliminate Asian carp in Midwestern rivers. Reuben Goforth, an aquatic ecology professor, said the amount of electricity needed to kill Asian carp eggs in the rivers would be far too high. “We were hoping this would be a viable way to control these Asian carp,” said Goforth. “We really need to look at other methods.” He found it took at least 16 volts per centimeter of electricity to kill the embryos. That compares to the 1 volt per centimeter used in electrical barriers around Chicago. “Using 16 volts is just too much,” he said. “It would be dangerous for people and other aquatic life to put that much electricity in the water.” AG CENSUS FORMS — All farmers should receive a 2012 Ag Census form in the mail by early January. Completed forms are due back to the government by Feb. 4. Farmers may return their forms by mail or online by visiting a secure website, {www.agcensus.usda.gov}. Federal law requires all agricultural producers to participate in the census and requires the National Agricultural Statistics Service to keep the information of all individuals confidential. ILLINOIS FFA RETIREMENT — FFA members and advisers across the state are bidding farewell to Frank Dry, the associate executive secretary of the Illinois FFA Association. Since 1985, Dry has served the FFA, FFA Foundation, and the Illinois Association of Vocational Agriculture Teachers. Dry’s retirement begins Jan. 1. He will be honored in February during an FFA Alumni event. BETTER DROUGHT FORECASTS — Last week, USDA signed an agreement with the Department of Commerce, including the National Oceanic and Atmospheric Administration, to improve sharing of data and expertise, monitoring networks, and drought forecasting efforts. In recent months, USDA worked with local governments, colleges, and state and federal partners to conduct regional drought workshops. To date, meetings have been held in Nebraska, Colorado, Arkansas, and Ohio.

(ISSN0197-6680) Vol. 40 No. 51

December 24, 2012

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2012 Illinois Agricultural Association

STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

STATE

Massive state pension debt hurting state aid to schools BY KAY SHIPMAN FarmWeek

commonly mentioned pension reform proposals. Those include raising the retirement age, adjusting cost-of-living increases, and gradually transferring employees’ future pension costs to the local government bodies that employ them. Johnson predicted any reforms that may

Illinois owes so much to the state pension fund that four years would be needed to pay the debt — even if every tax dollar went toward the pension, Tom Johnson, president of the Taxpayers’ Federation of Illinois, informed Illinois Farm Bureau directors. ‘Pass something, get it into the Johnson’s sobering courts, and then the court will be assessment of the state’s financial probforced to tell us what is right and lems came last week what is wrong.’ during a discussion of state pension — Tom Johnson reforms. Other stateTaxpayers’ Federation of Illinois funded obligations, such as education, already are being hurt by the unfunded penpass in the General Assembly will be chalsion liability. lenged in court. However, a court decision “Downstate districts got hit hard this year would give state lawmakers some direction to and will the next two years, because the pen- enact legally sustainable changes, he added. sion costs are not allowing the state to fully “Pass something, get it into the courts, and fund the school aid formula,” Johnson said then the court will be forced to tell us what is during a conference call with the IFB board. right and what is wrong,” Johnson said. TheTaxpayers’ Federation has estimated As pension debt continues to mount, Illinois school districts are receiving only 89 cents becomes less economically competitive, Johnof every dollar of state aid they should son noted. receive this fiscal year. While Illinois would need four years to repay “The areas hardest hit will be downstate its pension debt even with spending all its tax Illinois because they (districts) traditionally revenue, Wisconsin would need only a month, have been the biggest beneficiaries of state Johnson said. aid,” Johnson said. However, Chicago public “The amount crowded out by unfunded schools also are major beneficiaries, he pension (liability) will make Illinois a noncomadded. petitive place to create jobs and make investJohnson briefly discussed a few of the ments,” Johnson summarized.

1st Farm Credit Services makes second gift to Illinois agriculture The 1st Farm Credit Services (FCS) last week made an additional $250,000 donation to support Illinois agriculture education, youth, and leadership programs. Working through a donoradvised fund with the IAA Foundation, 1st FCS made its second donation of $250,000 to the fund. The fund was created in December 2010 with an initial $1 million donation from the Normal-based cooperative that serves 42 counties in Northern Illinois. The second gift ensures programs dedicated to agriculture education, youth, and leadership, will continue to receive donations from 1st FCS for several years. “We feel a responsibility to contribute to the development of present and future Illinois agriculture,” said Steve Cowser, chairman of the 1st FSC board. Since the fund was established, more than $160,000

has been donated to 10 different programs for ag education, youth, and leadership. The donations have touched an estimated 2 million lives and directly benefitted about 150,000 students, farmers, future leaders, and educators. “The IAA Foundation is pleased to support 1st Farm Credit in this capacity, and I am encouraged to see more funds being added,” said Susan Moore, IAA Foundation director. “1st Farm Credit leadership has indicated that its intention is not only to increase the amount in the fund, but to increase the amount of charitable dollars going out to causes important to agriculture.” She thanked the association for reaffirming its commitment to support agriculture, education, and leadership through the fund. 1st FCS was able to establish the fund after several

years of record earnings made possible by a thriving agricultural economy. The association currently provides donations to many of the groups that will benefit from this fund. The $1 million donation, the single largest contribution to the IAA Foundation, helped establish its largest donor-advised fund managed through Country Trust Bank.

Page 3 Monday, December 24, 2012 FarmWeek

the river

Excavation, precipitation raise navigation prospects restrictions could be put in place, but the National Weather Service Man and Nature teamed last indicates that now is unlikely to occur until at least Jan. 15. week to offer further hope for Northern snow accumulacontinued winter commerce on tions offer hope for further the Upper Mississippi River. relief “going into next year,” Last week, U.S. Army Corps Petersen told FarmWeek. of Engineers contractors conMeanwhile, the Corps tinued rock pinnacle removal in the Thebes reach of the Missis- announced it was releasing 4,000 cubic feet of water per sippi south of St. Louis. As of second from the Kaskaskia RivFarmWeek deadline, rock er to help maintain the Missisblasting had not yet begun – sippi channel. contractors were FarmWeekNow.com The Kaskaskia using mechanical Visit FarmWeekNow.com to release may excavation barges to remove check out the latest updates on continue for Mississippi River conditions only three rock segments. near St. Louis. weeks because As blizzards of the need to moved across preserve Carlyle Lake reservoir parts of Illinois Thursday, levels. crews continued to work, St. And Corps officials have Louis District Corps announced plans to release an spokesman Mike Petersen added 4,000 cubic feet at reported. Gavin’s Point Dam on the The recent storms helped northern Missouri to counterpush the Mississippi River channel to roughly 12 feet deep act icing in tributaries that could affect Missouri River navat St. Louis Thursday — up igation. about a foot-and-a-half since Hancock County farmer and Dec. 17. Illinois Farm Bureau Director If the channel reaches nine Terry Pope was impressed by feet (a foot below standard “the movement that’s taken barge tow drafts), barge traffic BY MARTIN ROSS FarmWeek

place by the Corps.” Corps contractors’ 16-hour daily work schedule “keeps commerce going,” he said. Pope has worked extensively with the Corps to address levee concerns within his area. “You try to get something done by the Corps, and sometimes it takes years,” said Pope. “We’ve seen things happen here in 30 to 60 days. It shows that if there’s a major problem enough people get behind, you can get some movement. We’re in an emergency situation; we need to keep commerce moving.” Pope nonetheless related

concerns from elevators and barge operators forced to reduce shipping volumes because of low water levels. At a certain threshold, light “loadings” can become too costly to justify grain shipping, he said. Pope challenged Corps officials who maintain they cannot release further waters from Missouri reservoirs because of recreation, fish and wildlife, hydropower, and other river needs. He argued “commerce needs to take precedence over recreation,” and noted river exports contribute significantly to

“keeping our (U.S.) balance of trade in the positive.” “There are a couple of things we need to look at,” Pope said. “One, of course, is water supply, as we look at the Missouri River and its reservoirs. Public water supply is always a key thing. “From there, I think our priority needs to be commerce. The Mississippi is a key avenue to move our products, either up or down river. But more than that, a lot of concrete, salt, fuel come north up the river. It affects more than just the agricultural community.”

Lawmakers and stakeholders focus on Mississippi issues Current worries along the Mississippi River are merely the tip of the pinnacle, according to a Southern Illinois congressman who met last week with river stakeholders and federal officials working to keep barge channels open. Belleville Democrat U.S. Rep. Jerry Costello joined Springfield Democrat Sen. Dick Durbin and Collinsville Republican John Shimkus, U.S. Army Corps of Engineers and the U.S. Coast Guard officials, and agriculture, energy, and other navigational interests at a meeting in East Alton. Durbin called the Mississippi “the cog that turns the wheel for many industries in Illinois,” and Costello argued “maintaining river flow is critical.” Illinois Lt. Gov. Sheila Simon participated in last week’s stakeholder meeting, and Durbin reported Minnesota, Iowa, and Missouri lawmakers “are following this as closely as we are.” President Obama indicated “all options are on the table” if rock removal fails to address winter navigation needs, including release of additional water into the Mississippi from other sources, the senator said. “That could involve a battle in court before it’s over,” Durbin warned. Costello sees the Missouri/Mississippi situation as a symptom of a larger problem facing waterways transportation. “This situation we face on the Mississippi today is of an emergency nature,” he told FarmWeek. “What they’re doing today — blasting the rock in the river and dredging and so on — hopefully will get us past where we are right now. “But regardless of whatever temporary solution we’ve outlined, we have to come up with a long-term solution, as well. The Mississippi River is a superhighway.” Illinois Farm Bureau Vice President Rich Guebert Jr. applauded the lawmakers for “raising awareness” of the river’s economic importance, and reported the push for further Missouri River releases is “on their radar.” A variety of interests was on hand, including representatives of Illinois corn and soybean groups and GROWMARK. Guebert noted the “devastating effect” low river levels and concerns about a potential navigational slowdown or shutdown have had on regional basis prices for corn, soybean, and wheat. He cited the prospect of increased Midwest fertilizer prices “as fertilizer companies try to refill their warehouses from fall application of crop nutrients.” — Martin Ross and Rita Frazer

Workers contracted by the U.S. Army Corps of Engineers last week cleared rocks from the river floor near Thebes. The Coast Guard and the Corps are overseeing rock excavation/blasting operations due to the low water situation on the Mississippi River. (U.S. Coast Guard photo by Petty Officer 3rd Class Ryan Tippets)

Contractor hopes crews can meet 30-day schedule A U.S. Army Corps of Engineers contractor is hopeful crews within the next four weeks can clear rock pinnacles that threaten navigation on a key stretch of the Upper Mississippi River. Dan Arnold, construction manager with Dubuque-based Newt Marine, outlined a twostep process for rock removal on the Thebes “reach” of the Mississippi south of Cape Girardeau. Newt and Michigan-based Durocher Dock and Dredge are using hydraulic hammers to break up formations, then removing loose rock with barge-mounted excavators. Eventually, contractors will drill holes into larger formations and plant light dynamite loads to shatter the rock for removal via excavator. Newt began excavation Dec. 16, and Durocher launched operations early last week, but as of FarmWeek’s Friday deadline, blasting had not yet begun. “They’ve really been able to knock down a lot of those pinnacles just using excavators, because the river’s been low,” St. Louis Corps spokesman Mike Petersen told FarmWeek. “I don’t know when (contractors) will start blasting. They basically have to figure out how little dynamite they can use to minimize any damage to (aquatic) wildlife.” The Corps and the U.S. Coast Guard have

allowed crews 16 daytime hours of work to ensure continued commercial traffic before removal resumes the next morning. The average depth of the channel last week was 13 feet. The Corps is required to maintain a nine-foot depth, but ideal barge “draft” is 10 feet. The Corps has identified 14 areas for rock removal within Newt’s contract zone above the Thebes Bridge. Each area is 150 feet wide by 300 feet long; pinnacle size and count varies from area to area. Durocher is removing rock below the Thebes Bridge. The Corps has specified three or four deep-water sites within the reach where excavated rock can be deposited without obstructing the channel. The Corps is expected soon to award additional contracts for rock removal in the Grand Tower area upriver. Thebes-area pinnacles reportedly account for 90 percent of any potential navigational obstruction, and thus that work was expedited. “Our work schedule is about 30 days — we’re going to try to accomplish all our rock removal within that 30-day period and still give our crews a couple of days off for Christmas,” Arnold told FarmWeek. — Martin Ross

FarmWeek Page 4 Monday, December 24, 2012

government

Costello ends 25 years of infrastructure, coalition building BY MARTIN ROSS FarmWeek

Since the late 1980s, Jerry Costello’s played a key role in U.S. transportation policy, covering the rivers, the rails, and the nation’s skies. And as he prepares to close the book on a 25-year career in the U.S. House, Representative Costello hopes to continue promoting infrastructure and economic improvement as a private citizen. But he warns flaws in the legislative infrastructure must be repaired before significant national progress can be made. The Belleville Democrat celebrates the bipartisan spirit of Illinois’ downstate delegation. Last week, he joined Springfield Democrat Sen. Dick Durbin and Collinsville Republican John Shimkus to address concerns voiced by Mississippi River stakeholders. In late June, Costello, Shimkus, and fellow retiree Rep. Tim Johnson, an Urbana Republican, intervened on behalf of drought-stricken livestock producers. Costello sees “no question that the environment has changed dramatically” on the Hill over the last quarter century. He argues the key concerns facing most Americans “are not Democrat or Republican problems,” and urged Congress’ 2013 freshman class to “work across the aisles.”

“The institution (Congress) itself is more partisan, and that change has not been for the better,” he told FarmWeek. “It’s my hope the goal for this freshman class will be to forget about signing pledges, forget about digging their heels in. “On Jan. 3, when you take the oath of office, come in with the thought of doing what’s best for the country and not what is best for the party or your political future,” he advised the newcomers. “It’s been a privilege and an honor to serve in the U.S. House of Representatives: Fewer than 10,800 individuals have ever had that honor. I think I’ve grown and learned a lot, listening to and watching my colleagues and the people I’ve represented in every profession, as well.” Costello, an East St. Louis native and former state investigator and St. Clair County Board chairman, was ranking Democrat on the House Transportation and Infrastructure Aviation Subcommittee. He said he sees the need for a comprehensive, long-term, adequately funded national infrastructure plan that encompasses roads, bridges, rail, airports, and river. Congress recently was close to a bipartisan agreement on “WRDA2” (the Water Resources Development Act) — a new water projects package — and Costello is hopeful the 114th Congress will follow

through early next year. Transportation Chairman John Mica (R-Fla.), who helped develop WRDA2 proposals with Senate Public Works Chairman Dianne Feinstein (D-Calif.), presided over his last hearing in mid-December. But Mica’s successor, Rep. Bill Shuster (R-Pa.), “is very up to speed on these issues and works in a bipartisan way,” Costello maintained. “I’m confident we have the right people in the right places,” he said. “Now, we need to move with some speed instead of letting things drag on.” Equally crucial in Costello’s view is a comprehensive energy policy, though he warns energy likely won’t be initially “high on the agenda” in 2013 given continued fiscal concerns. The congressman favors an “all-of-the-above” approach to energy security, including support for renewable fuels, continued coal use, and natural gas development. Costello, who’s also served on the House Science Committee, stresses the growing importance of sound science in shaping energy and other federal policies. He said he was heartened by the November return to the House of former Energy Department physicist Bill Foster, a Naperville Democrat. As he coaches his successor, Belleville Democrat and former Illinois Adjutant General

Above: U.S. Rep. Jerry Costello, a Belleville Democrat, addresses concerns about winter navigation on the Mississippi River last week in Alton. He is flanked on the left by Sen. Dick Durbin, a Springfield Democrat, and, behind Durbin’s left shoulder, Rep. John Shimkus, a Collinsville Republican. (Photo by Rita Frazer)

William Enyart, to “build relationships on both sides of the aisle,” Costello is looking next to the academic arena. Three St. Louis-area universities already have contacted Costello, who hopes to lecture at the graduate level on government, transportation, and other issues dealt within his quarter-century of congressional experience. Further, he plans to tap his expertise in “the maze of government bureaucracy” as a Midwest transportation consultant. “As I leave Congress Jan. 2, I

USDA animal traceability plan takes aim at interstate movements online at {aphis.usda.gov/traceability}. The new rule is USDA’s latest attempt to enhance its ability to USDA last week announced a final rule that will establish regu- contain animal disease outbreaks. USDA in 2006 introduced the lations for interstate movement of livestock. voluntary National Animal Identification System (NAIS) program Under the final rule, livestock moved interstate that asked producers to register their premises and will have to be officially identified and accompaID animals with a national animal tracking datanied by an interstate certificate, veterinary inspecbase. tion, or other documentation such as owner-shipBut after low enrollment in NAIS, USDA dis‘It’s important we per statements or brand certificates. continued the program. The new animal traceabilicreate this sys- ty rule was issued after USDA received 1,600 pubAg Secretary Tom Vilsack said the final rule meets the diverse needs of livestock producers tem for produc- lic comments. around the country, because it’s flexible and will “It’s important we create this system for proers.’ address gaps in disease-response efforts nationducers,” Vilsack said. “It’s going to more quickly wide. identify where diseased and at-risk animals are as “It’s about our ability to trace back and respond well as identify animals that don’t need to be held — Tom Vilsack quickly to an animal disease outbreak,” Vilsack or tested during a disease outbreak.” U.S. ag secretary said during a teleconference hosted last week by The new rule also will help the U.S. protect the USDA. integrity of its markets during an animal disease Under the final rule, USDA will accept the use outbreak, Vilsack said. Cattlemen lost billions of of brands, tattoos, or brand registration as official dollars in beef sales in the years following the disidentification. It also will permanently maintain the covery of BSE in the U.S. in 2003. use of backtags for cattle and bison moved directly to slaughter The new final rule will not require every animal in the country and will accept various forms of movement identification. to be identified, and it will not require specific tags or dictate the All livestock moved interstate to a custom slaughter facility, format for recordkeeping, Vilsack said. chicks moved interstate from a hatchery, and beef cattle under 18 “USDA has listened carefully to America’s farmers and ranchmonths of age — unless the latter is moved interstate for shows, ers, working collaboratively to establish a system of tools and exhibitions, rodeos, or recreational events — are exempt from the safeguards that will help us target when and where animal diseases official identification requirement in the rule. occur, and help us respond quickly,” he said. USDA will publish the final r ule on Friday and it will USDA requested Congress authorize $14 million for implebecome effective June 28. More specific details about the mentation of the final rule. Congress as of last week had regulation and how it will affect far mers is available approved $8 million. BY DANIEL GRANT FarmWeek

want to still make a contribution,” Costello said. “I want to be able to work with local, state, and federal officials and the business community on issues I’ve been involved in. “I’ve been involved with every major transportation bill over the last quarter of a century, in some form or fashion. I want to be able to continue that work, just in a different role. I have told General Enyart that I am as close as the telephone if he has a question or needs advice.”

Nutrient management seminar Jan. 7 Farmers will hear about ways to maximize profitability while managing nutrients at 8 a.m. Monday, Jan. 7, at a seminar in Wabash Valley College’s Bruebeck Auditorium, Mount Carmel. There is no registration fee and pre-registration is not required. Speakers also will discuss how nutrient management relates to proposed federal and state regulations. Topics will include changes in the Illinois Fertilizer Act, the Keep it for the Crop (KIC) program, cultural practices to enhance nutrient management, and data management’s role in nutrient management. Seminar sponsors are Wabash Valley College Agriculture Department, University of Illinois Extension, Illinois Farm Bureau, and Wabash Valley Service Co. Questions should be directed to Mike Wilson, Wabash Valley Service Co., at 618-262-3978.

Page 5 Monday, December 24, 2012 FarmWeek

government

Dust rules averted, but regulatory future uncertain BY MARTIN ROSS FarmWeek

Urban Americans and Midwest farmers should be able to breathe a little easier thanks to a U.S. Environmental Protection Agency (EPA) decision recognizing the difference between industrial soot and â&#x20AC;&#x153;farm dust.â&#x20AC;? However, American Farm Bureau Federation regulatory specialist Andrew Walmsley advises farmers to keep their eyes on the regulatory skies. The reasons? EPA continues to scrutinize greenhouse gas and other air-quality issues, and Administrator Lisa Jackson is expected to hand over the reins to a new agency chief appoint-

ed by an administration heading into its final term. Jackson announced final rules aimed at regulating â&#x20AC;&#x153;fine particulatesâ&#x20AC;? (soot) but maintaining existing standards for larger â&#x20AC;&#x153;coarseâ&#x20AC;? particulates such as dust generated by livestock, crop production, and rural motorists. EPA tightened annual standards for soot pollution from 15 micrograms per cubic meter to 12 micrograms. It estimates 100 million-plus Americans in more populous areas are susceptible to health problems linked to fine particulates. Ag interests argued coarse particulates in less-populated

areas pose minimal health risks. EPA is required to review particulate standards every five years, and â&#x20AC;&#x153;we, hopefully, should be good for another five years or so,â&#x20AC;? barring a legal challenge, Walmsley told FarmWeek. EPA was sued by environmental groups after the agency purportedly missed a 2011 particulate review deadline. Fears that EPA might attempt to regulate farm dust spurred Sen. Pat Roberts (R-Kan.) to push measures that would block EPA from imposing more stringent standards for at least a year. â&#x20AC;&#x153;I think weâ&#x20AC;&#x2122;d definitely still support legislation stripping

any authority for EPA to regulate farm dust,â&#x20AC;? Walmsley advised. â&#x20AC;&#x153;We might be good for a few years now, but thereâ&#x20AC;&#x2122;s nothing stopping EPA from wanting to tighten regulation of farm dust into the future.â&#x20AC;? He cited a host of other regulatory issues â&#x20AC;&#x153;waiting out there in the wingsâ&#x20AC;? pending Novemberâ&#x20AC;&#x2122;s election outcome. Of long-term concern is potential EPA pressure on â&#x20AC;&#x153;stationary,â&#x20AC;? non-highway greenhouse gas sources, possibly by 2016. While legislative carbon standards are unlikely amid the House-Senate political divide, Walmsley said Hurricane Sandy has generated â&#x20AC;&#x153;a buzzâ&#x20AC;? about climate change. And with elec-

tion worries out of the way, he acknowledges concerns that a â&#x20AC;&#x153;lame duckâ&#x20AC;? EPA might feel freer to pursue more restrictive regulatory standards. Jackson has not announced plans to leave EPA, but she reportedly may return to New Jersey, possibly as Princeton Universityâ&#x20AC;&#x2122;s new president. Walmsley anticipates further Cabinet choices â&#x20AC;&#x153;once the fiscal cliff â&#x20AC;&#x2122;s taken care of.â&#x20AC;? â&#x20AC;&#x153;There are concerns that if we get into a stalemate over who the president appoints, we could get an interim administrator whoâ&#x20AC;&#x2122;s more beholden to (EPA) bureaucratic career staff, whoâ&#x20AC;&#x2122;d like to be more aggressive,â&#x20AC;? he related.

To defer or not to defer: policy a key factor Crop insurance is paying off â&#x20AC;&#x201D; in some cases, amply â&#x20AC;&#x201D; for drought-stricken growers. That raises some key tax questions. The decision whether to declare 2012 insurance payments as part of this springâ&#x20AC;&#x2122;s tax filing or defer loss payments to the 2013 tax year is not necessarily an easy one, University of Illinois Extension ag tax specialist Gary Hoff warns. Congressional fiscal policy could play a major role in the decision â&#x20AC;&#x201D; Hoff noted farm families already may incur a significantly higher tax bill in 2013 if lawmakers allow existing rates, deductions, and thresholds to expire Dec. 31. He acknowledged the possibility that the tax debate will extend into 2013. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not totally sure we do want to defer (insurance pay-

ments) to next year,â&#x20AC;? Hoff advised. â&#x20AC;&#x153;My suggestion: Hold off filing your tax return just as late as possible. â&#x20AC;&#x153;You say, â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122;m a farmer â&#x20AC;&#x201D; I have to file by March 1.â&#x20AC;&#x2122; Thatâ&#x20AC;&#x2122;s a fallacy. Everyone has an April 15 filing deadline. If you have to pay estimated taxes, and you file by March 1, and two-thirds of your gross incomeâ&#x20AC;&#x2122;s from farming, you wonâ&#x20AC;&#x2122;t be assessed an estimated payment penalty.â&#x20AC;? Farmers can make one estimated tax payment by Jan. 15, based on two-thirds of the tax to be shown on their 2012 tax return, 100 percent of the tax shown on their 2012 return if the return covered all 12 months of the tax year, or 110 percent in the event adjusted gross income exceeded $150,000. They then are â&#x20AC;&#x153;penaltyproof â&#x20AC;? and can file on April

15 or seek a filing extension to Oct. 15, Hoff said. That enables producers to do some â&#x20AC;&#x153;after-the-yearâ&#x20AC;? tax planning to decide not only how insurance payments should be treated but also whether to use provisions such as Section 179 with new equipment purchases or save deductions for future years. To qualify for deferral of loss payments, farmers must have a history of deferring 50 percent or more of crop sales to the following year.

That history must be acknowledged on tax forms, with attached documentation. Farmers are allowed to defer taxes only on insurance payments attributable to individual yield â&#x20AC;&#x201D; not the portion related to price (see accompanying chart). That may require detailed calculations for producers with Revenue Protection coverage, which protects against yield and price losses. Growers who opt to defer must identify their insurance

carrier and provide specific crop details and the amount of payments being deferred. Producers must use the cash method of accounting to be eligible for deferral. Farmers must keep separate records for individual operations if they hope to defer payments on one and not another farm. However, if a producer farms both as a sole proprietor and in a partnership, he can defer payments under either arrangement. â&#x20AC;&#x201D; Martin Ross

Are you puzzled by the cost of a college education?

The ability to defer 2012 crop insurance payments depends in part on policy type. Because farmers may opt to defer taxes only on the individual yield portion of payments, those protected by county-based policies do not qualify for deferral, and those with revenue protection (RP) policies must calculate the portion of payments attributable to production losses vs. price-based losses.

Three farm safety sessions scheduled Three one-day safety sessions will be Jan. 9, Jan. 18, and Feb. 1 at the Asmark Agricenter, Bloomington. The registration deadline is Jan. 7. The sessions are hosted by the Illinois Corn Growers Association (ICGA). Participants will receive training in anhydrous ammonia safety and learn about complying with regulations related to transportation, oil spill prevention control countermeasure plans, and on-farm containment and pesticide mini-bulk containers. The cost is $100 for ICGA members and $175 for non-members. The fee includes lunch, conference materials, and appropriate safety gear. For a registration form or more information, go online to {ilcorn.org/home} or call the ICGA office at 309-557-3257.

2012 Farm Credit Scholars

Let Farm Credit help piece together

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Twenty $1,500 Farm Cre Credit Agriculture Scholarships will be awarded next spring to high school seniors pursuing agriculture degrees. Applications are due February 28, 2013.

Online registration & Online registration application application available avai ailable l at: www.fcsillinois.com

800.444.FARM (3276) info@fcsillinois.com

Serving the southern 60 counties of Illinois

FarmWeek Page 6 Monday, December 24, 2012

yule on the road

Santa must comply with special rules of the road Transportation regulations can be a headache for Santa, too, as he climbs into his sleigh today (Christmas Eve). Kevin Rund, Illinois Farm Bureau senior director of local government, has been helping Santa, a member of the North Pole County Farm Bureau, understand the complexities of modern transportation rules. Rund said he gained new information in researching Santa’s special case. “Special provisions have been built into transportation regulations to accommodate the singular vehicle type operated by Santa Claus,” Rund said. “Known as the ‘Claus clause,’ these rules may be broadly applied — if anyone else happens to own or lease flying reindeer and a sleigh.” Rund advised the jolly old elf on some of the requirements: “Santa is pleased with the conspicuity marking requirements (the red and white reflective material required on large trailers). It fits in nicely

goodies, Rund learned. As a private carrier engaged in international commerce, Clause Inc. has a staff of elves busy arranging jurisdic-

with this Christmas color scheme,” he noted. In addition, Santa had to get spe-

cial authorization for his trip, because there is a red light on the wrong end of his rig — Rudolph’s nose. As an animal-drawn vehicle, Santa’s sleigh is required to display an SMV (slow-moving-vehicle) emblem — despite its blinding speed and the fact that it more often than not is airborne. Though the fluorescent orange clashes with red and green, Santa cheerfully applied the newest ASAE S276.6-compliant emblem to his sleigh. Santa understands how

farmers and others who operate big vehicles can be overwhelmed by all the required transportation permits. He is required to have an overweight permit for the first half of his trip — until he delivers some of his tremendous load of

tional reciprocity with transportation officials across the globe, Rund said. A special International Department of Transportation (DOT) number was assigned to Santa, but he was allowed to put it on his sleigh, not the power units (the deer drew the line at animal ID). Despite an exemplary driving record, Santa has to maintain a valid license with the secretary of state’s office. Because Santa drives only once each year, he was issued a specialized CDL (Christmas Driver’s License). In the spirit of giving, Santa shared some of his special test questions with FarmWeek. Turns are negotiated using? A) starboard and port; B) giddy up and whoa; C) ho, ho, ho; or D) gee and haw. Most front-end skids are caused by? A) high winds; B) driving too fast for conditions;

C) Rudolph’s inattention; or D) cloud banks. In researching Santa’s situation, Rund learned the equipment requirements for his sleigh and deer were specially modified under the Claus clause. • Air brakes have been given a whole new definition. • Glazing mandates are out the window. • Headlights were replaced by Rudolph with his nose so bright.. • Fuel system rules have been modified to accommodate moss. • Coupling devices ... Santa preferred not to be specific. Arctic DOT regulators along with their southern counterparts, have been perplexed about how to apply axle spreads and weight limits throughout the 20th century and into the 21st. The recent shift to allow 80,000-pound loads in Illinois has been a great help in recent years. Rund advised truck drivers to take note of Santa’s offstreet parking abilities. Santa’s rooftop technique satisfies all Motor Carrier parking regulations while preserving lane widths on local roads and streets, he said. Kevin Rund contributed material for this tongue in cheek holiday regulatory article in collaboration with Kay Shipman.

Santa to heed safety advice Before embarking on his round-the-world excursion, Santa Claus should consider the following safety tips. Avoid the rum-pa-pa-pum (punch) at least 24 hours before driving. Rudolph’s nose should be red — not Santa’s. Be wary. Wisconsin’s bow-hunting season extends through Christmas. Ohio requires retrofitting the full array of ASABE (American Society of Agricultural and Biological Engineers) lights and reflectors. Take care along the I-55 corridor to avoid collisions with the bear in the air. Don’t forget to buckle up! If you must use your cell phone, pull the sleigh over first before calling or texting.

Herb Day offering new info The University of Illinois Herb Day will offer new information during its run from 8 a.m. to 4:30 p.m. Saturday, Jan. 19, at the Holiday Inn Hotel and Conference Center, Urbana. The early registration deadline is Jan. 11. “Even those who have been to previous Herb Days will find this one to be loaded with especially knowledgeable and entertaining presenters,” said Chuck Voigt, U of I Extension vegetable and herb specialist and the event coordinator.

The event will include a retail area. Advance registration fee is $60 and includes lunch. Advanced registrations must be received by Jan. 11 to guarantee a meal. For information or to register, call Linda Harvey at 217244-1693 or send an email to lharvey@illinois.edu. On-site registration Jan. 19 will begin at 8 a.m. and continue as long as space permits; however, a meal will not be included.

Page 7 Monday, December 24, 2012 FarmWeek

commodities

Winter wheat conditions variable as crop enters dormancy BY DANIEL GRANT FarmWeek

The winter wheat crop in Illinois generally is in good shape as it enters dormancy. But there is concern about the crop nationwide, particularly in the Southern Plains

FarmWeekNow.com To listen to an RFD Radio interview with Mennel Milling Co. about wheat conditions, go to FarmWeekNow.com.

states, where dryness remains an issue. “The majority of it (the Illinois wheat crop) is going

into dormancy in pretty good shape,” said Gary Berg, a farmer from St. Elmo (Fayette County) and treasurer of the Illinois Wheat Association. The Illinois soft red wheat crop at the beginning of this month was rated 69 percent good to excellent, despite the fact that some acres were planted as late as November due to fall rainfall. Berg was not able to plant all the wheat acres he intended due to the fall rains. But he said he believes most farmers were able to plant at least their normal number of acres.

A winter wheat field near Mt. Olive, on the farm of Ed Marburger, president of the Macoupin County Farm Bureau, established a quality stand last week prior to the winter storm. The majority of the winter wheat crop (69 percent) in Illinois is in good to excellent shape as it enters dormancy. (Photo by Mike Orso)

“Everything I’ve seen so far looks pretty good,” Mark Miller of Mennel Milling Co. in Mt. Olive (Macoupin County), told the RFD Radio Network. “There was a field planted mid- to late November. I didn’t know if that would turn out very well, but here in the last two to three weeks it’s come along well.” Overall, just 33 percent of the winter wheat crop, mostly hard red winter wheat, was rated good to excellent as of the end of November. It was

the lowest rating on record prior to dormancy, AgriVisor reported. The onset of winter conditions last week could provide a mixed bag for the wheat crop as colder temperatures could be a threat while snowcover generally is beneficial. The benefits of snowcover to winter wheat, according to Jim Shroyer, Kansas State Research and Extension crop production specialist, include the following: • Moisture in the form of

snow usually moves down into the soil and remains there for quite some time. • Moisture from snow will help increase root growth of wheat, even if the top growth is dormant. • Snowcover reduces wind erosion of the soil. • And snowcover has an insulating effect on the soil, keeping very cold air temperatures from reducing soil temperatures and protecting the crown of the wheat plant from cold injury.

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Wheat yields very good in 2012 This year’s drought put a major dent in corn yields and to a lesser extent soybean yields in Illinois. But it was a different story for the wheat crop. Illinois farmers this year harvested a wheat crop that averaged 63 bushels per acre, just 4 bushels below the record-high of 67 bushels per acre recorded in 2006. “It wasn’t a record crop, but we had a pretty good wheat crop this year,” said Gary Berg, a Fayette County farmer and treasurer of the Illinois Wheat Association. “The quality was excellent.” Conditions for wheat planting were nearly ideal in the fall of 2011, winterkill was minimal due to abnormally warm temperatures last winter, and the crop received some timely spring rain prior to the drought’s arrival, according to Brad Schwab, state statistician with the National Agricultural Statistics Service (NASS) Illinois field office. “Everything lined up for a good crop,” Schwab said. “It came out of dormancy about a month early, and it got some spring rain.” The rains dried up in June. But the lack of moisture at the end of the growing season actually helped the wheat crop. Farmers reported excellent grain quality and low disease pressure. NASS this month released county wheat acreage, yield, and production data for the 2012 crop. The information can be viewed at the website {nass.usda.gov/il}. The top five counties for wheat production this past season were Washington (4.1 million bushels), Clinton (2.2 million), Randolph (2.1 million), St. Clair (1.5 million), and Monroe (1.4 million). Nineteen counties in Illinois had a wheat yield average above 70 bushels per acre. The top five counties with the highest wheat yield averages were Carroll (95.7 bushels per acre), Boone (92.4 bushels), DeKalb (87.2 bushels), Ford (85.4 bushels) and McHenry (85.1 bushels). County-level data for corn and soybeans will be released on Feb. 21, NASS reported. — Daniel Grant

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FarmWeek Page 8 Monday, December 24, 2012

AROUND IllINOIs

Exploring, seeking ag career? Now there’s an app for that BY KAY SHIPMAN FarmWeek

The ever-present smartphone is the latest tool used to interest students in agricultural careers. A new free application, Ag Career Finder, offers information about 58 careers in agriculture, food, and natural resources along with realtime job postings in those fields. The app was developed by Facilitating Coordination in Agricultural Education (FCAE) in partnership with AgCareers.com. “We’re trying to communicate to the students of today,” Jess Smithers, FCAE coordinator, told FarmWeek. “Viewing information on phones and iPads is the way to go.” The new ag career app “provides them (students) information in a way they are accustomed to getting information,” Smithers added. Information profiles are provided for each of the 58 careers along with recommended high school courses, degrees required, salary ranges, potential employers, and other information. Smithers pointed out the app allows students to search for additional information and

take an interest assessment that would direct them to potential careers. “You can’t do that with a piece of paper,” he said of traditional brochures and printed materials. Another special feature is the real-time posting of open agriculture positions listed by AgCareers.com. The company annually posts about 36,000 ag and natural resource jobs on its website and has offices across the United States and in Canada, Australia, and New Zealand. “The way the app was created, it (job postings) will be updated automatically,” Smithers said. The application “will provide a way for anyone to explore careers and actually see the real-life jobs that are available,” he said. Smithers said he was not aware of other similar ag career exploration apps. Development of the tool was funded as part of a grant from the Illinois Department of Commerce and Economic Opportunity and the Illinois Community College Board. To find the app, search for Ag Career Finder at the Google Play store or at the App store for Apple products.

Blizzard blows through state; heaviest snow in northwest BY DANIEL GRANT FarmWeek

Winter arrived with a bang late last week as a blizzard blew through Illinois and other parts of the Midwest. The storm didn’t produce much snow in the southern twothirds of the state, but powerful wind gusts in excess of 50 mph created white-out conditions (a winter storm is defined as a blizzard once wind speeds reach 35 mph and visibility is reduced to a quarter-mile or less for a sustained period). The heaviest snowfall totals statewide were in Northwestern Illinois. A total of 5.5 inches of snow was recorded in Altona (Knox County), according to the National Weather Service (NWS). Leroy Getz, a farmer from Savanna (Carroll County) and a FarmWeek Cropwatcher, estimated his farm received about 7 inches of snow. The largest snowfall amounts last week were west and north of Illinois. Parts of Iowa received about a foot of snow while Madison, Wis. received about 17 inches. “Iowa (and Wisconsin) got the majority of the snow,” said Heather Stanley, meteorologist with the NWS office in Lincoln. “It was the winds that created problems here.” Winds gusts peaked at 65 mph in Galesburg, 61 in Diver-

non, 59 in Effingham, and 58 in Lawrenceville, Hopedale, Pekin, and Decatur, Stanley reported. There were numerous reports Thursday and Friday morning of power outages, downed trees and power lines, stranded vehicles, and road closures. About 1,000 flights were grounded in the Midwest Thursday. The southern edge of the storm also produced tornadoes in Arkansas and Alabama. “We got quite a bit of moisture, which is good. We needed that,” Getz said. “But we didn’t need the 50 mph winds blowing stuff around.” Getz, a dairy farmer, was concerned milk pick-up may be delayed or canceled Friday at some dairy farms. “Many roads are closed, mostly due to semis that are stuck or jackknifed,” he said. Elsewhere, Chicago received just a couple tenths of snow, which ended a recordlong streak of 290 days without measurable snowfall. But Chicago’s streak of consecutive days without at least 1 inch of snowfall was extended to 301 days and counting as of Friday, according to the NWS office in Chicago. The next potential winter weather system was forecast on Friday to move into Illinois by Christmas day or Christmas night.

U.S. cattle inventory down 6 percent

The inventory of cattle and fed cattle and more and more pressure for higher fed cattle calves on feed in the U.S. continues to shrink in response to prices as we move into 2013,” Peel told FarmWeek. “The tight feed supplies and high challenge will be the margins input costs. and demand support (for USDA in its monthly cattle higher beef prices) as we on feed report Friday estimatmove forward.” ed the inventory Peel predicted of cattle and FarmWeekNow.com fed cattle prices, calves on feed for the slaughter For complete details on the latest which have been USDA cattle on feed report, go hovering near market as of to FarmWeekNow.com. $125 to $126 per Dec. 1 totaled hundredweight, 11.33 million could climb to $130 or $135 by head, down 6 percent from a the first quarter of 2013. year ago. And if higher beef prices Placements in feedlots durdon’t eat into consumer ing November (1.92 million demand, Peel predicted fed cathead) also declined 6 percent tle prices next spring could from the previous year. climb as high as $140 per hunThe drop in placements wasn’t as dramatic as suggested dred weight. Peel said last week’s winter by pre-report estimates. The average trade guess called for a storm will help wheat pastures in some states, such as Kansas. 9 percent decline in placeBut parched fields in Oklahoments. ma and south received very litIt shouldn’t have a bearish tle moisture. effect on the market, though, The storm, which brought as fundamentals still suggest cattle prices should continue to colder temperatures, also could affect animal performclimb well into next year, ance. according to Derrell Peel, Marketings of fed cattle in Oklahoma State University ag November totaled 1.76 million economist. “This report confirms we’ll head, down 1 percent from a year ago. — Daniel Grant see even tighter supplies of

Page 9 Monday, December 24, 2012 FarmWeek

fROM The COunTIeS

UREAU — The Women’s Committee will sponsor a teacher appreciation dinner and Ag in the Classroom training lesson at 4 p.m. Wednesday, Jan. 16, at the Farm Bureau office in Princeton. Continuing professional development units will be available. Bureau County educators who wish to attend should contact the Farm Bureau office by Jan. 14. • The 98th annual meeting will be at 6 p.m. Thursday, Jan. 17, at Wise Guys Bar and Grill, 2205 North Main Street, Princeton. Dinner will served. Tickets for the meeting and dinner are $10 and tickets must be purchased by Jan. 14 at the Farm Bureau office or from a Farm Bureau director. • Bureau County Farm Bureau Foundation scholarships are available to graduate students who are a Bureau County Farm Bureau member or a dependent of a Bureau County Farm Bureau member

and is pursuing a degree in an agriculture-related field. Applications must be postmarked by Thursday, Feb. 28, or hand delivered to the office by 4 p.m. Feb. 28. • Farm Bureau has a 2013 summer internship available for an agricultural student who has completed at least two semesters in college classes and has enrolled for an upcoming semester. Preference will be given to applicants from Bureau County who have a background and/or are studying an agriculture-related or communication–related field. Interested parties should submit an application, a resume, and two personal recommendation forms to Bureau County Farm Bureau. Deadline for applications is Thursday, Feb. 28. ARROLL — Farm Bureau will sponsor an informational meeting at 6:30 p.m. Wednesday, Jan. 16, on the Mackinac Island and

CLASSROOM VISIT

Members of the Macon County Young Farmers Committee recently visited the county’s adopted classroom, Darlene Srmek’s first grade class at Brodnicki Elementary School in Justice. Mrs. Srmek is at right. Dena Hyde, a county Young Farmer, center, adopted the class for the year. This was the first time the Young Farmers were able to visit the Cook County school. The visit occurred as the Macon County members were returning from annual meeting in Chicago. Dena’s husband, Zach, left, and board member Mark Lillpop, not pictured, also attended. The visitors worked with the students on a couple of activities, including putting together a collage of the food cycle from a seed to the process it goes through to becoming food on a plate. (Photo by Tim Stock, Macon County Farm Bureau manager)

Stocking will include FB membership BY KAY SHIPMAN FarmWeek

Creative gifts for the farmer who has nearly everything doesn’t necessarily require a trip to a farm supply store. One Scott County farmer will find a new Farm Bureau membership wrapped under the tree, thanks to his resourceful bride. “He really enjoys farming,” Mallory Kauffman said of her new husband, Aaron. “It (a Farm Bureau membership) is something most farmers around here have.” Aaron Kauffman farms Coon Run Farms Inc. in partnership with Dan Evans. Although the Scott County Farm Bureau has sold plat books and other items as Christmas gifts, Kauffman’s membership was unique, according to Blake Roderick, the county Farm Bureau manager. “I can’t remember someone gifting a Farm Bureau membership before,” Roderick said. One certainty about giving a Farm Bureau membership — it won’t be the wrong size and there are no worries about needing assembly instructions.

Agawa Canyon Rail Adventure. It will be held in the Naaman Diehl Auditorium at the Farm Bureau office. The trip is scheduled for Aug. 19-25. Call the Farm Bureau office at 815-244-3001 for more information or to make a reservation. OLES — Farm Bureau will sponsor a family bowling party at 3 p.m. Saturday, Jan. 19, at the Charleston Lanes. Cost is $1.50 per game and $1.50 for shoe rental. Call the Farm Bureau office at 345-3276 for reservations. • Farm Bureau’s annual meeting will be at 5:30 p.m. Monday, Jan. 21, at the Life span Center, Charleston. Cost is $9. Call the Farm Bureau office at 345-3276 by Jan. 11 for reservations or more information. DGAR — The District 12 Young Leaders Committee will sponsor its 9th annual Illini Farm Toy Show Jan. 4-6 at the Holiday Inn and Convention Center, Urbana. Dates and times are Friday 5 to 9 p.m.; Saturday 9 a.m. to 5 p.m.; and Sunday 9 a.m. to 2 p.m. Cost is $3 for adults, $2

for children ages 6-12; and under 6, free. A live auction will be at 10:30 a.m. Saturday. Admission Sunday is free with a free-will donation to local Ag in the Classroom programs. • The Young Leaders Committee will sponsor a New Year’s Eve gala at 6 p.m. Dec. 31 at the Castle Finn Winery, south of Paris. Dinner will be catered by McDaniel’s Catered Elegance. Tickets are $40, which include a choice of pork chop or sweet peppered chicken. Blind Man Drivin’ will provide the entertainment. Call the Farm Bureau office at 217-465-8511 to purchase tickets. AYNE — A seminar on nutrient management will be at 8 a.m. on Monday, Jan. 7, at the Bruebeck Auditorium, Wabash Valley College, Mount Carmel. Call the local Wabash Valley Service Co., county Farm Bureau, or county Extension office for more information. • A 2013 crop insurance program will be at 7 p.m. Tuesday, Jan. 22, at the Frontier Community College Foundation Hall, Fairfield. Doug

Yoder, Illinois Farm Bureau senior director of affiliate and risk management, and Ron Gray, Country Financial crop specialist, will be the speakers. Call the Farm Bureau office at 618-842-3342 for reservations or more information. HITE — The annual meeting will be at 10:30 a.m. Friday, Jan. 11, at the Farm Bureau office. Read the complete notice of the annual meeting at {whitecfb.com}. Call the Farm Bureau office by Jan. 4 for reservations or more information. • A silent auction benefiting the White County Ag in the Classroom program will be held in conjunction with the annual meeting Jan. 11. Contact Brianne Foster at 618599-6338 if you have an item to donate for the auction.

“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

FarmWeek Page 10 Monday, December 24, 2012

profitability

Keep your eyes on the prize — profitability BY CORY WINSTEAD

It seems recent World Agricultural Supply and Demand Estimates arrive with a lot of hype and then not a lot of action. The latest report was no different and could even be considered “ho hum.” The market is always looking for some news, rumor, or hype to trade on, and it can become distracting to those of us needing to sell physical grain. Today we have round-theclock news channels, dedicated investment channels, and the Internet. Let’s talk about that

last one for a moment. I searched for “Agriculture News” and in less than 0.2 of a second found 368 million hits! We are inundated with news about all sorts of things that ultimately affect our bottom lines. May I remind you that the trade needs and is looking for this daily to continue volatility? So how do we get through all of the smoke? Focus on the prize for your operation: PROFITS. It all starts with a marketing plan, completed and followed each year. There are

times that a plan needs adjustment, but it provides a place to start. When working on your marketing plan, the goal is to be profitable, not to hit the high of the market. It is extremely important Cory Winstead when marketing to know the breakeven and profit goals you have for your operation. This will provide you with sales

ary reports have been big game changers in the past. When looking at making a sale, ask yourself “Is it profitable?” and “Does it match up with my marketing plan?” Use a marketing plan this upcoming year and take advantage of new crop prices in the $6.20 to $6.50 area, as they will be great places to start obtaining betterthan-breakeven levels for your 2013 crop.

goals, allowing you to pull the trigger at prices needed to meet your overall operational goal. It is easy to say we can continue to go higher in our markets, but the fact is we have seen a two-plus-year bull market that will not last forever. We are starting to see world and domestic demand slip for our corn. These are things to watch closely, because just as fast as we found ourselves with $7plus corn, we can see the corn futures price down at the $5 level. The next USDA report will come Jan. 11 and the Janu-

Cory Winstead is AgriVisor’s account manager. His email address is cwinstead@agrivisor.com.

Beef demand also should be strong next year while supplies are expected to decline. USDA projected beef production this year could total 25.075 billion pounds, down 1.2 percent from last year. Slaughter next year was predicted to decline by 5 percent. “We’re seeing the ongoing effect of the drought and high feed prices,” Good said. “We have the potential of

reduced (beef) production for another couple years and continued recovery of beef exports,” he noted. “That suggests cattle prices should continue to recover and move to record levels.” Feed prices are expected to moderate, particularly in the second half of 2013. A record-large soybean crop is expected in South America this spring, and Good believes U.S. acreage will remain stable and yields will rebound from last year’s drought. “Everything right now is pointing to a recovery in supplies in the year ahead,” he said. Good predicted crop prices could decline from record-high averages in the 2012/13 marketing year of $7 per bushel for corn and $14.50 for beans to a range in 2013/14 of $4.75 to $5.50 for corn and $11 to $12 for beans.

Back in black? Livestock returns projected to improve in 2013 BY DANIEL GRANT FarmWeek

Livestock producers, who dealt with a feed shortage, high feed prices, and tight margins this year, should see an improvement to their bottom lines next year. Darrel Good, University of Illinois ag economist, recently projected tight meat supplies and solid demand will result in strong livestock prices next year. The economist also predicted a rebound in crop production in 2013, which he believes will translate to a moderation of feed prices. “If we hold (cattle and hog) prices and see some moderation in feed prices, large losses (experienced this year) should give way to improved prof-

itability in 2013,” Good said at the recent Illinois Farm Economics Summit in Galesburg. He predicted the average price of hogs could increase from about $61 per hundredweight this year to $64 in 2013. He also forecast higher fed cattle prices, from an average of $122 per hundredweight this year to $125 next year. “We’ve not seen significant liquidation numbers (in the swine industry),” Good said. “It appears there will be a modest decline in production (next year).” USDA recently projected U.S. pork production will slip from 23.195 billion pounds this year to 22.792 billion pounds next year. Meanwhile, demand is expected to remain strong, par-

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.

Range Per Head $32.25-$60.89 $55.89 - $62.50

Weighted Ave. Price $44.20 $60.02

This Week Last Week 101,271 124,968 *Eastern Corn Belt prices picked up at seller’s farm Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $78.81 $75.88 $58.32 $56.15

Change 2.93 2.17

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 126.06 124.32 1.74 126.00 124.46 1.54

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 148.51 147.22 1.29

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 127-155 lbs. for 92.16-103.50 $/cwt. (wtd. ave. 96.23)

Export inspections (Million bushels) Week ending

Soybeans Wheat Corn n/a n/a n/a n/a n/a n/a Last year n/a n/a n/a Season total n/a n/a n/a Previous season total n/a n/a n/a USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

ticularly in the world market. “The export number is big,” the economist said. “It looks to be strong again in 2013.” (See graphic) U.S. pork exports totaled 493 million pounds in October, up 2.2 percent from the same time last year. And through the first 10 months this year, U.S. pork exports totaled 4.5 billion pounds, up 7 percent from a year ago.

Risk management key to producer ‘coexistence’? BY MARTIN ROSS FarmWeek

Assumption farmer Leon Corzine sees 2013 as a year of improved harmony for high-tech, low-tech, and no-tech production interests, though risk management could play an expanded role in keeping the peace. The former National Corn Growers Association Biotech Working Group chairman served on USDA’s Advisory Committee on Biotechnology and 21st Century Agriculture (AC21). (See also Perspectives page column) The panel’s recent final report urged USDA to educate farmers and others about the importance of producer “coexistence and their role in it. The group encouraged harmonization of biotech regulatory standards globally to ensure a continued flow of commodity trade. AC21 included a broad spectrum of viewpoints, but was “probably weighed a little heavier to the organic community,” Corzine told FarmWeek. He nonetheless cited “some good outcomes” in terms of a desire for producer coexistence. Committee members acknowledged the continued challenge in identifying “actual economic losses” related to the presence of genetically engineered material in organic or identity-preserved (IP) commodities. USDA’s goal thus should be “the smooth functioning of the marketplace and the maintenance of respectful relationships among the various participants in agriculture,” AC21 stated. “Given the diversity of production practices

we have now, coexistence is working pretty well,” Corzine said. “These biotech products face more regulatory scrutiny than any other product I use on my farm. That’s a good thing; we can hold that up. Since these products have been introduced, we’ve not had one health issue with a (biotech) product. We want that perfect record to stand.” None of the organic interests either on or testifying before the committee recommended any form of federal compensation for crops “contaminated” by biotech crops, he noted. However, the committee explored options for managing risks to IP or organic producers or marketers, including a “crop insurance-type mechanism” administered by USDA. Given the absence of USDA or private industry data linking direct losses to biotech presence, Corzine doesn’t anticipate such a policy emerging in the near-term. The organic sector’s prohibition on biotech varieties is “process-based,” and the mere accidental presence of outside genetic material in organic products does not endanger producer certification, he said. “We recommended USDA continue to look for data, and if there is a point where the data shows it’s needed, it should explore the crop insurance model,” Corzine said. “Since we have a system in place, it wouldn’t take much of an adjustment to make it work for organics or, for that matter, any other identity-preserved value a producer has.”

Page 11 Monday, December 24, 2012

PROFITABILITY Corn Strategy

CASH STRATEGIST

Putting markets into perspective Given the events of last summer and market declines into December, we thought it an important time to put some of the larger features of markets into perspective. On last week’s grain futures charts we laid out the longterm cyclic counts for the grains. While the corn doesn’t appear to have a long-term cyclic low due until 2015, both soybeans and wheat do. The two- and three-year cycle lows for soybeans are due about one year from now, while wheat should see a nine-year low in that same time frame. We have included a chart of one of the more closely watched commodity indices, the CRB Index. Shorter term it tends to have an annual and semi-annual pattern, bottoming close to the change of the calendar year and again near mid-year. Longer term it, and other indices, tend to have a cyclic pattern of seeing lows every three years. That three-year pattern multiplies into both nine- and 27-year cycles. Those longer-term lows used to have a tendency to occur mid-year, but since the

late 1990s, they have tended to come closer to the change of the calendar year. That may be somewhat tied to influence of crude oil and product markets that have a seasonality with lows near the end of the calendar year. Or it could be tied to the impact money flows have had on commodity prices. Even though the timing of highs and lows has gotten a little inconsistent with economic issues that have buffeted markets since 2007-2008, the cycles should still prevail. If we would remain rigid on the three- and nine-year cycles, their next lows would come at the end of 2013. As the cycles are shown, the ideal low might not come until the middle of 2014. But because the last couple of three-year cycles on that count have been stretched, we could be due for a cycle that is a little shorter than three years. That might bring the timing back to the end of 2013/beginning of 2014, making the patterns more congruent. Having said all of that, the picture ahead looks more negative than positive over the next number of months. The first sign the trend might be turning up would be a close over the downtrend shown and the 89-week moving average.

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ü2012 crop: Even though last week’s breakdown in corn futures had long-term consequences, it positioned the market for a good short-term rebound. Wait for a rebound to $7.25 on March futures to make catch-up sales. We may add an increment at that level but prefer to see the Jan. 11 USDA reports first. ü2013 crop: Even though we believe the market may have topped, we aren’t yet interested in chasing prices lower. Use a bounce to $6.25 to make catchup sales. Unless the market offers a reason, we don’t plan to add a sale before the USDA reports, but check the Hotline the first week of January. vFundamentals: Slow export demand continues to be a problem for the corn market. Brazil continues to undercut U.S. prices. And ethanol imports may continue to restrain the pace of processing corn for ethanol. The big unknowns are feed demand and the actual size of this year’s crop. What is known is that plantings will be large again in 2013.

Soybean Strategy

ü2012 crop: This past week’s hard break may have changed the complexion of the market. Use rallies to $14.50 on March futures to make catch-up sales. Target a rally to $14.60 on March to add a sale; check the Hotline. ü2013 crop: Use a rebound to $13.20 on November 2013 futures for catch-up sales. We are considering adding another increment on strength, but for now, plan to wait into the new year. Check the Hotline the first week of January for an update. vFundamentals: It was reported by USDA that China canceled more than 1 million metric tons (36.7 million bushels) of soybeans last week, with cancellations on one day the largest on record. While it isn’t certain what the Chinese are doing, we think they are replacing U.S. purchases made as insurance against South American crop problems with South American purchases. If so, more could occur if the

South American crop develops relatively normally, and so far, problems are not yet significant.

Wheat Strategy ü2012 crop: Wheat dropped to a five-month low last week on technical selling. Prices on the Chicago March contract slipped below psychological support at $8 and the 200-day moving average. The next level of support is $7.76. Still, prices aren’t likely to sustain weakness with the new-crop uncertainty. Wait for a rebound before making catchup sales. ü2013 crop: Wait for Chicago July futures to rebound to

$8.50 to make catch-up sales. Check the Hotline frequently; we could add a sale at any time. vFundamentals: The wheat market had little fresh fundamental news to trigger its hard break. The decline in part was influenced by the sell-off in the soybean market. A combination of rain and snow occurred in the Southern Plains, bringing much needed moisture. However, additional moisture is still needed because of the depleted reserves. There was some evidence of export business picking up with good weekly sales and a large sale to Egypt.

FarmWeek Page 12 Monday, December 24, 2012

perspectives

Work together for a dynamic agriculture Open the food section of your favorite Sunday newspaper or visit the food and agriculture blogosphere and you occasionally get the impression that segments of agriculture are in a competitive feud with one another. It seems consumers are constantly pressured to pick a favorite. Organic vs. conventional? Global market BARRY BUSHUE chains vs. guest columnist locally sourced? Traditional vs. modern? But visit with farmers who earn their livelihood working the land, as I do, and you get a much different impression. Most farmers and agribusinessmen and women have an unbridled respect for their counterparts, regardless of the region where they live, the crops they choose to grow, or the production methods they embrace. Today’s farmers are sophisticated, and they understand that one size doesn’t fit all. They also realize it will take a diverse agriculture and food system to meet the 21st century demands of a rapidly escalating global population, more sensitive and discerning wealthy consumers, and increasingly strained natural resources. When I was appointed a member of

AC21, U.S. Agriculture Secretary Tom Vilsack’s Advisory Committee on Biotechnology and 21st Century Agriculture, I didn’t plan on dispelling this misconception of a dueling agriculture industry. But along with my fellow committee members, I think we’ve made progress. Recently our committee completed a

year-long discussion on ways to enhance coexistence among different production methods — specifically biotech and non-biotech crops. We tackled some challenging topics but in the end developed a set of consensus recommendations that aim to serve the interests of all segments of agriculture. In brief, our recommendations centered on the histor y of successful coexistence in identity-preser ved ag riculture where there is a market-based price premium for maintaining the integ rity and purity of a crop; the potential to implement education and outreach initiatives to improve stewardship and neighbor-toneighbor coexistence; and whether there is a need to help some far mers manage risk through a new insurance-type product. I’m optimistic the AC21 recommendations can improve the way

far mers work together because they reflect a diversity and mutual respect embodied in our committee’s membership. For my part, there are two core principles I believe are worth keeping in mind as we work together to strive for a dynamic agriculture industry that continues to respond to consumer preferences. The first principle is choice. Far mers should have the freedom and ability to pursue their own best interests when deter mining what safe and environmentally sound cropping methods to adopt. The second principle is innovation — in markets and technolog y. The growth of our industry depends on maintaining and improving access to new input technologies, including biotechnolog y, while preser ving and enhancing the marketability of far mers’ products in domestic and foreign markets. This requires a science-based regulatory framework that is appropriately rigorous as well as efficient and predictable. Then, far mers and agribusiness can be free to identify and pursue consumer-driven, value-added market opportunities for which our industry is so well-known. Barry Bushue owns a family nursery, berry, and flowering basket farm in Oregon and serves as vice president of the American Farm Bureau Federation.

Peppermint adds to Christmas holiday lore Think fast — what color is peppermint? Red and white, right? A lot of times that’s how you know something is peppermint flavored — by the red and white stripes. But I have peppermint growing in my garden, and there’s nothing red about it — not even the flowers! MARI Every year LOEHRLEIN around Christmas I think about writing a story about peppermint. It is amazing that such an unassuming garden plant enjoys the kind of popularity it does. It is so easy to grow: Seasoned gardeners sometimes even avoid it due to its tendency to spread beyond its intended place in the garden. Nevertheless, the oil extracted from mint is the most valuable of all the essential oils worldwide. But the candies that bear its name have a personality

of their own. Whether caneshaped or little round mints that you sometimes get at the end of a meal, the red and white stripes are synonymous with the candy. So, how did the peppermint get its stripes? And, by the way, why is peppermint so strongly associated with Christmas? Well, the cane portion of the story occurred much earlier than the stripes or the peppermint flavor. The popular telling of this part of the story is that in 1670 a choir master in Germany wanted to appease children in the living Nativity scene he was managing and so provided them with white sugar sticks. He wasn’t sure parents would approve of this practice, so he requested that the candy maker add little crooks to the top of the candy stick, bringing an air of authenticity to the candies. The choir master is said to have used the canes to teach the children the story of Jesus’ birth. Many years later in 1847,

a German immigrant to America decorated his Christmas tree with the white canes, thus beginning a new holiday tradition. Unfortunately, details seem to be lacking on exactly how or why the candies got their stripes and their peppermint flavor, but both happened around the turn of the 20th century. Illustrations on cards before 1900 showed pure white candy canes and those afterward have striped ones. Peppermint itself is a hybrid between two different species of mint, water mint and spearmint that apparently occurred spontaneously in 1696 in a British garden. Apparently the mints hybridize quite easily in the wild, and hundreds of varieties have been reported. Mint is believed to have been grown and used since at least Roman times. The Romans are said to have introduced mint sauce to British cuisine. Peppermint oil that is extracted from the plants is used to flavor the popular

sweets. It contains menthol, which creates a cool sensation in the mouth, and also has anesthetic qualities. The liqueur crème de menthe is made from this oil. Mint was a popular garden herb during Medieval times, and peppermint tea remains a popular herbal tea. Spearmint lacks the menthol, and its oil is used to flavor toothpaste. Sometimes you can find green-and-white-striped candy canes, and these may be

wintergreen flavored. But then, that’s another plant, and another story that will have to be told another day. In the meantime, enjoy your holiday treats — in moderation, of course — and have a happy and healthy holiday season! Mari Loehrlein is a professor of horticulture and landscaping in the School of Agriculture at Western Illinois University, Macomb. Her email address is MMLoehrlein@wiu.edu.

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