A decision to take advantage of a county Far m Bureau cost-share assistance/farm safety program saved the life of a Livingston County farmer. ................6
The impoRTAnce oF the livestock industry to Illinois was delineated at the recent Illinois Commodity Conference. Even the manure is a valuable commodity. ....7
A unique univeRsiTy of Illinois laboratory acts as the “Consumer Reports” of ag ventilation products for the United States and many foreign countries. ..........8
Monday, December 3, 2012
Two sections Volume 40, No. 48
Policymakers stalled at brink of cliff
Farm bill proposals wide-ranging; hope remains
BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
Washington lobbyists and analysts are straining to separate remedies from rumors amid the “noise and chatter” at the brink of the “fiscal cliff,” American Farm Bureau deputy policy director Dale Moore told FarmWeek Friday. As the threat of severe January “budget sequestration” cuts and tax hikes looms, House Speaker John Boehner (R-Ohio) reported the White House and the House had made “no substantive progress” in reaching a tax/spending compromise. Bush-era tax breaks and a raft of more recent business tax incentives are set to expire Dec. 31. Illinois Farm Bureau is pushing lawmakers to maintain the current $5 million individual estate tax exemption and 35 percent estate tax rate, along with existing capital gains tax rates and Section 179 small business tax capital expensing provisions (see accompanying details). If Congress takes no action, the individual estate tax exemption will drop to $1 million ($2 million per cou-
ple), potentially exposing Illinois farm families with relatively modest land holdings to a 55 percent estate tax hit. Congressional uncertainty extends as well to the farm bill debate, which may or may not wind up being tied into any fiscal cliff solution, Moore said. Last week, Senate Ag Committee Chairman Deb Stabenow (D-Mich.) maintained the farm bill is “very much part of the discussion,” and offered up ag proposals from the Senate and House ag committees, which include significant cuts in farm programs and food stamps, as “a way to save money.” Leaders on both sides of the Hill continue to mull options that range from including a new five-year farm bill (and possibly ag disaster aid) with a fiscal package or merely extending 2008 farm bill provisions for a year without offering “anything concrete in either direction,” Moore said. Stabenow met Thursday
with Ag Secretary Tom Vilsack and other leaders of the House and Senate ag committees. Senate Ag Ranking Member Pat Roberts (R-Kan.) stated, “There’s still a concerted effort to get a five-year farm bill,” and Vilsack urged lawmakers to focus on a five-year bill rather than an extension. “Because of the savings in the House and Senate versions, somewhere between $23 billion and $35 billion, leadership on both sides of the Hill could decide to plug that into whatever their solution is to the fiscal cliff and avoid sequestration,” Moore said. “Here’s language that’s already done. There’s certainly some reconciling to be done between both versions of the bill, but they can’t be any further apart than some of the other issues they’re working on.” Even if extension proved the stopgap solution, Moore is uncertain whether it would include further extension of direct payments and other general commodity programs or merely reauthorization of
already-expired dairy programs. Further, inclusion of disaster assistance as part of an extension raises questions about farm bill funding and the ag budget baseline available to House and Senate ag
committees attempting to reformulate a new farm bill next session. Extension thus may be a more complicated option than considering “the two bills that are already on the table,” Moore suggested.
IFB: Talk about taxes with D.C. lawmakers Illinois farmers worried about the impact of Congress’ current tax impasse can make their voices heard on the Hill. Illinois Farm Bureau urges members to contact their congressmen and senators regarding expiring tax provisions of importance to agriculture via the U.S. Capitol switchboard at 877-I-ACT-4-AG (877-422-8424). IFB supports preserving the current $5 million personal estate tax exemption, indexed to inflation and with a top tax rate of 35 percent. Average Illinois farmland values have tripled since 2000, and producers may be unable to pass land and assets to the next generation if the exemption falls back to $1 million at a 55 percent rate or even $3.5 million. Further, IFB is pushing to maintain a 15 percent capital gains tax rate, boost the threshold for Section 179 small business expensing to $500,000, and continue bonus depreciation. Use of Section 179 in equipment purchases provides an incentive for rural businesses, while bonus depreciation of equipment aids in farm cash flow. IFB also supports long-term extension of biodiesel, cellulosic biofuels, biomass power, and wind energy credits.
Lawmakers, groups intensify emergency river action Federal agencies are working to keep goods moving on the Mississippi River as lawmakers, farmers, and commercial river interests seek support for rapidly removing potential roadblocks to winter traffic. Last week, the American Farm Bureau Federation and 20 other national groups urged President Obama to issue an emergency declaration that would expedite removal of Mississippi River rock formations that may seriously impede Southern Illinois navigation by mid-December (see story page 3). In response to an Illinois Farm Bureau request, Illinois congressmen led by Peoria Republican U.S. Rep. Aaron Schock also pushed for White House action. Midwest senators reportedly were primed to follow suit. In a letter to the assistant secretary of the Army, Gov. Pat Quinn offered state support to “fast-track” dredging and rock removal in the Thebes/Grand Tower area.
The Illinois Senate has adopted a resolution seeking emergency action. Pike County Farm Bureau President David Gay sees ample justification for executive emergency intervention. “Since this situation is really caused by the ongoing drought, there’s no endpoint to the crisis — at least, not one we can predict,” Gay told FarmWeek. “If the river’s closed for lock repairs or frozen for a month or so, we can see when that’s going to be over. This situation is not going to turn around anytime soon; not on its own.” Last week, St. Louis Corps District Commander Col. Christopher Hall told industry representatives and state and federal officials “we’re expediting every process we can to get us where we need to be when we need to be.” The Corps has continued dredging operations “around the clock” since July to ensure a safe 9-foot-deep, 300-foot-wide navigation channel from St. Louis to Cairo,
FarmWeek on the web: FarmWeekNow.com
and “we are responding to the conditions we see ahead of us,” Hall said. The Corps has investigated rock removal for six years: Funding for the work is in place and environmental analysis necessary to begin blasting has been completed. However, under routine bidding procedures, the Corps doesn’t anticipate letting a contract until late January or February. Under endangered species laws, work must be complete by March 31 to accommodate spawning by the pallid sturgeon. Agency representatives saw limited alternatives for ensuring navigable depths. Dennis Wilmsmeyer, executive director of St. Louis’ America’s Central Port, suggested tapping Lake Michigan waters to boost channel depth, but the lake falls under joint U.S.-Canadian jurisdiction and a U.S. Supreme Court ruling that restricts releases. Corps representatives noted short-term See River, page 2
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, December 3, 2012
GOvERNmENT
Quick Takes
ONE BIG TREE!
LICENSE PLATE HIKE — Illinois vehicle owners will pay $2 more to renew their license plates if Gov. Pat Quinn signs legislation passed last week. During the fall veto session, the Senate passed a bill increasing the fee to raise money for the Illinois Department of Natural Resources (IDNR). The increase will add an estimated $32 million annually to IDNR’s budget. IDNR Director Marc Miller said his agency would use the funds for park upkeep and infrastructure repair. HUNTERS BAG MORE ILLINOIS DEER — IDNR reported hunters killed more than 72,000 deer during the opening weekend of the firearm deer season. This year’s preliminary total is more than 5,000 higher than the first weekend of the 2011 season. The season’s second portion occurred last weekend (Nov. 29Dec. 2). Pike County ranked No. 1 with 2,108 deer during the first weekend, followed by the counties of Fulton (2,048), Adams (1,938), Jo Daviess (1,877), and Randolph (1,665). About 60 percent of the deer killed were bucks. IDNR has issued more than 334,000 firearm deer hunting permits so far for the 2012 season. A G C E N S U S TO A S K N E W Q U E S TIONS — Farmers will encounter new questions on the 2012 agriculture census, according to USDA. The census will be mailed in midDecember. For the first time, farmers will be asked about their Internet use, crops used for renewable energy, and land use. The information will be collected to help policymakers with program development and funding decisions, according to USDA. Completed forms are due by Feb. 4. After receiving a form, farmers may fill out the form and mail it back or complete an online version at {agcensus.usda.gov}. Farmers are guaranteed by law that their information will be kept confidential.
(ISSN0197-6680) Vol. 40 No. 48
December 3, 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.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) 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
John Fink, Pekin, stands in front of a sycamore tree planted by his grandfather, James Hurley, in 1861 on the family farmstead near Easton in Mason County. The land was farmed for 60 years by Fink’s father, Floyd, and now is farmed by Fink’s brother-in-law, Merle Ratliff of Easton. (Photo by Ken Kashian)
State Senate confirms Flider as IDOA director The state Senate last week confirmed Bob Flider of Mt. Zion as state agriculture director. Flider, a former state representative, had served as interim direcBob Flider tor since his Feb. 15 appointment and
March 1 nomination by Gov. Pat Quinn. Proponents of the nomination stated during Senate debate they have been pleased with Flider’s performance as interim director. Illinois Farm Bureau supported Flider’s nomination. Flider served in the state House from 2003 through 2011. During his tenure, he served
on several House committees and held leadership positions on electric generation and renewable energy committees. In the months following his appointment, Flider guided his agency’s response to state budget cuts and a statewide agricultural drought and its consequences. The Illinois Department of Agriculture employs about 370 people.
River Continued from page 1 adjustments in river flows can be made at 28 Mississippi locks but warned the combined lock pools would not provide enough water to sustain added depths for any extended period. Water is being held at Carlyle Lake to provide a “short-term pulse” if needed to move “critical” cargo through the Thebes area in deep Southern Illinois. But that would provide only a “one-time bump,” one Corps official advised. Under the Missouri River Master Manual, congressional approval is necessary before officials could release added water from the Missouri for “incidental benefits” such as Mississippi navigation, Corps spokesman Monique Farmer argued. Even at that, Farmer questioned the amount of water “we can safely push out of the Missouri.” A group of Midwest senators including Democrat Sen. Dick Durbin of Springfield have requested a U.S. Army Corps of Engineers analysis on the impact of various water release levels on communities and other upstream interests. A report tentatively is anticipated this week. Meanwhile, U.S. Coast Guard Upper Mississippi sector commander Capt. Byron Black reported no current plans to close the river to navigation. Black pledged efforts to “safely facilitate commerce to the maximum extent possible.” At the same time, he noted the possibility of “very real physical limitations” to navigation should river levels continue to drop. In that case, the Coast Guard could be forced to implement measures such as limiting barge loads to compensate for decreased depth or barge tow widths to accommodate reduced channel width, imposing one-way barge movements, or enlisting “helper boats” to assist tows. — Martin Ross
Tuesday: • Bryce Anderson, DTN chief ag meteorologist • Michelle Damico, Michelle Damico Communications • Andy Knepp, agronomist with Monsanto Wednesday: • Jerry Millburg or Kent McFarland, Illinois Department of Agriculture’s Market News •Stephen Ayers, architect to the Capitol Thursday: • Reid Blossom, executive director of the Illinois Beef Association • Bonnie McDonald, president of Landmarks Illinois Friday: • Sara Wyant, AgriPulse publisher • Mike Doherty, senior economist for Illinois Farm Bureau • Alan Jarand, RFD Radio director To find a radio station near you that carries the RFD Radio Network, go to FarmWeeknow. com, click on “Radio,” then click on “Affiliates.”
Page 3 Monday, December 3, 2012 FarmWeek
DROUGHT
Angel: Drought impact lingering Farm leaders stay focused BY KAY SHIPMAN FarmWeek
Illinois needs more precipitation before it fully recovers from the drought despite the heavy rains of September and October, the state climatologist said last week. “The thing that concerns me the most is the subsoil. Sixty-four percent (of Illinois subsoil) is dry to very dry,” Jim Angel said during the University of Illinois AGMasters Conference in Urbana. Jim Angel “Many of the farm ponds are not back up to normal, and stream flow is still low,” Angel added. Hydrologic droughts that affect ponds, rivers, and lakes require more time to recover compared to agricultural droughts that hinge on soil moisture levels, he explained. After a wet September and October, the
state experienced a dry November with statewide rainfall totals that were about half of average amounts through Nov. 25. Recovery varies among regions. East-Central and Central Illinois “are close to being normal,” Angel said, while Western and Northwestern Illinois “are struggling.” He noted rainfall totals for some areas remain 10 to 14 inches below average. The latest forecast is for above-average precipitation in December for Southern Illinois and major improvement is expected in that region’s drought conditions. Likewise, drought conditions are expected to improve in Northwestern and Western Illinois. “But for the western part of the Corn Belt, it looks pretty grim next spring,” Angel said. However, Illinois likely won’t repeat this summer’s drought in 2013. “It’s extremely rare in Illinois history to have back-to-back agricultural droughts,” Angel said.
Lessons offered by 2012 drought Farmers, crop advisers, and researchers continue to analyze the 2012 drought and its aftermath. Some University of Illinois agriculture scientists offered preliminary lessons they learned during the drought when they spoke at last week’s AGMasters Conference in Urbana. “No droughts are created equal,” cautioned Emerson Nafziger, U of I Extension agronomist. He warned farmers and crop advisers not to expect practices that worked successfully during the 2012 drought to work successfully in future droughts. “In most cases, water will be our (yield) limiting factor, especially in corn,” said Nafziger. He speculated yields were hurt more by the water shortages than by the extremely high summer temperatures. Even with that caveat, Nafziger does not anticipate major corn yield boosts from
drought-tolerant hybrids. “Most drought-tolerant hybrids won’t be marketed here, and they improve yields modestly,” Nafziger said. Some hybrids always have grown better than others under drought conditions, he added. “We can’t drought-proof crops without irrigation, and that’s not likely to happen on a large scale in Illinois,” Nafziger concluded. Spring soil tests will answer questions about the amount of nitrogen that remains in the soil, said Fabian Fernandez, U of I soil fertility specialist. The amount of nitrogen that will be available for next year’s crops will depend on the weather. If spring is dry and cool, “I am certain there will be a lot of nitrogen left,” Fernandez said. However a warm, wet spring potentially could result in nitrogen losses. Nafziger noted some “pret-
ty, scary high nitrogen levels” were found as part of a soil monitoring project. Somewhat unexpectedly, some of the higher nitrogen levels surfaced in Northern Illinois soils that are still dry, Nafziger noted. “It is not unusual to see (nitrogen levels) in the 20s (parts per million) and upper teens,” he continued. “Less than 10 (ppm) is the typical (nitrogen) level in the top foot (of soil).” “If you were a weed, you had a good year,” quipped Aaron Hager, U of I weed scientist, adding that weed control was a challenge this year. Hager warned farmers and crop advisers to be aware of the potential for herbicide carryover. “I’m not convinced we’re out of the woods yet,” Hager said. “My concern is it will take more moisture” to resolve potential carryover problems. — Kay Shipman
on river woes, profitability BY DANIEL GRANT FarmWeek
Strong commodity prices and an effective safety net (crop insurance) helped many farmers survive financially through the 2012 drought. But farm leaders are concerned looming transportation issues on the Mississippi River and the lack of a new farm bill could threaten future profitability. Paul Taylor, newly elected president of the Illinois Corn Growers Association, and Bill Wykes, chairman of the Illinois Soybean Association, disPaul Taylor cussed their concerns and priorities recently at the Illinois Commodity Conference. “We’ve got an issue (with reduced flow on the Mississippi River that is expected to limit barge movements between St. Louis and Cairo by Dec. 10. See accompanying story),” said Taylor, who farms in DeKalb County. “We’re pretty concerned.” A reduction in barge shipments is expected to have a negative impact on crop prices in some areas and boost the price of inputs (mainly fertilizer) that are shipped on the river. More than 500 million tons of cargo is moved on the Mississippi River each year. “It’s going to have a negative impact on our financial position,” Taylor said. “Things will cost more.” U.S. soybean exports,
which have been on a record pace, also could take a hit if barge transportation is limited this winter. “We’re trying to promote soybeans in any way, shape, or form we can to increase demand and profitability,” Wykes said. “That’s a huge concern if a key mode of transportation is taken away from us. Basis levels definitely could be affected.” Farmers in areas north of St. Louis, such as Central Illinois and central Iowa, that depend on river transportation for crop shipments could see basis bids plummet in Bill Wykes coming weeks if the middle Mississippi is closed. However, farmers who live along the Ohio River and south of Cairo, or near major rail lines, could see a premium in local crop prices. “It could really change the flow of grain,” Dale Durchholz, AgriVisor senior market analyst, told FarmWeek. “Some farmers could be winners and others losers from this. It depends on where you live (and the nearby) transportation structure.” The farm group leaders also are concerned about the lack of a new farm bill. “We’re concerned about long-term profitability,” Taylor said. “A new farm bill is essential to provide a safety net and revenue insurance.” Wykes’ priority is to push for a new five-year farm bill as opposed to an extension of the existing bill.
Transportation issues could pressure fertilizer prices
A reduced water flow in the Mississippi River could lead to price increases for fertilizer this winter and spring. The U.S. Army Corps of Engineers late last month reduced the flow from an upper Missouri River reservoir into the Mississippi River. The Corps is obligated by law to reduce the Missouri River flow from the Gavins Point Dam in South Dakota from 17,000 to 12,000 cubic feet per second as a drought-related conservation measure. The reduced flow could suspend the Corps’ ability to maintain a navigable channel for barge traffic on the Mississippi from St. Louis to Cairo. “It’s not a question of whether or not it will happen,” said Joe Dillier, GROWMARK director of plant food.
“The river level also plans to remove will fall in the Misrock formations from ‘The river is causing a the shipping channel, sissippi, and it looks like it will lot of uncertainty (in the which could help impact barge trafbarges continue fertilizer industry) right some fic.” to roll down the river. now. It’s so central to Disruptions to “The river is causriver navigation get supply in — it’s a ing a lot of uncerare expected to tainty (in the fertilizbig factor (for prices).’ occur by Dec. 10. er industry) right The only now,” Dillier said. unknown at this — Joe Dillier “It’s so central to get point for river supply in — it’s a big GROWMARK director of plant food factor (for prices).” shippers is how A worst-case scelarge of an impact nario for the fertilizer industry would the reduced flow will have on barge be a closure of the river to at least 90 traffic. percent of barge traffic from midShippers can light-load some barges December into February. and still manage to move some prodIf such a scenario occurs, fertilizer ucts during the low flow. The Corps
would have to be shipped into the Midwest via more expensive rail options. Dillier said it could lead to spot shortages of products and estimated prices could increase 10 to 15 percent. “If we have to go to the rail option, it will increase costs,” Dillier said. In the meantime, “It would be a good thing (for farmers) to go ahead and secure supply by forward contracting. That will put you at the front of the line.” One barge carries the equivalent of 60 trucks or 15 rail cars. Some spot shortages of dry fertilizer already have occurred in the state. Dillier said that was due to a very strong fall fertilizer application season that thinned out local supplies. — Daniel Grant
FarmWeek Page 4 Monday, December 3, 2012
government
Climate issues loom; petition seeks to chill EPA BY MARTIN ROSS FarmWeek
The U.S. Environmental Protection Agency (EPA) is working to “take the reins from our elected officials,” according to an analyst with the Heartland Institute. Amid post-election concerns about potential new climate regulations and EPA control over rural air and water, the Chicago-based institute has collected 15,000plus signatures on a petition seeking to rein in the regulators. Last week, former Senate Environment and Public Works Committee Chairman James Inhofe (R-Okla.) helped present the “citizens’ petition,” which asks Congress to consider “deep cuts in the size, power, and cost of the EPA.” It charged “an unprecedented campaign has been waged to scare the American people into believing that their health, safety, and even survival was at stake because
‘Our elected officials know better than to try to enact these harsh restrictions and regulations, to put them in the form of legislation, because the public wouldn’t stand for them. EPA doesn’t have to answer directly to the voters.’ — James Taylor Heartland Institute
of manmade global warming.” The petition focused on climate issues “because that’s where EPA has been placing its primary focus of late,” institute Senior Fellow James Taylor told FarmWeek. President Obama recently indicated he would revisit efforts to address climate change during his second term — earlier White House efforts culminated in failure of car-
bon “cap-and-trade” legislation that would have placed new air quality restrictions on a variety of sectors. EPA since has focused on rules aimed largely at coal-burning power plants. “We’re seeing EPA looking for something to get its hooks into to justify its existence,” Taylor said. “Small business entrepreneurs are feeling the negative consequences of EPA trying to expand its reach
Insurance re-rate deemed good for Illinois growers, ‘budget wise’ USDA premium adjustments should reduce 2013 insurance costs for farmers across the state while establishing a more accurate and fiscally sound basis for addressing crop risks. The Illinois Corn Growers Association (ICGA) deemed newly announced Risk Management Agency (RMA) crop premium reratings “a reasonable step in a farmer-driven effort to enhance the program to function in a more equitable fashion.” Under the second phase of a three-year re-rating process, Illinois growers are expected to see a statewide average 4 percent reduction in 2013 corn policy premiums and an average 9 percent reduction in soybean premiums. Specific reductions will vary county by county based on county insurance loss levels and by coverage level, Illinois Farm Bureau risk management specialist Doug Yoder stressed. In phase one of the re-rating process, 2012 Illinois corn and soybean premiums dropped an average 12 percent — nearly two-thirds of the state saw corn rate reductions, while five counties incurred premium increases, and the premiums in the remainder were unchanged. Under the current re-rate, North Dakota growers are expected to see an 11 percent average corn premium increase and South Dakota a 15 percent average bump up. RMA’s rate reform process, aimed at moving insurance loss ratios toward levels intended by Congress, was the result of more than a decade’s work by ICGA and the National Corn Growers Association. Jeff Scates, the ICGA immediate past president, called RMA efforts “fiscally sound and budget wise.” USDA Chief Economist Joe Glauber predicts a possible $20 billion in crop loss pay-
ments this year. Payouts had exceeded $6.2 billion as of Nov. 26. Farmers themselves invested $4.1 billionplus in premiums this year. But although Congress proposes to scrap direct payments and cut $25 billion to $35 billion in ag funding over the next 10 years, public concerns about drought-related payouts have put federal premium subsidies at risk. “We now have proof crop insurance covers farmers during a disaster such as the 2012 drought,” Yoder countered. “We also have proof farmers have paid in more than their fair share, as rate reductions under new RMA methodology indicate. “Basically, you could make the point that we’ve been overpaying in Illinois. We have historically low loss ratios, indicating we don’t get our premium dollars back over time, leading to these rate reductions.” RMA, which previously calculated county base rates based on loss experience over a 36-year period, is now focusing on a 20-year period, placing greater weight on recent years. That reflects technology-driven yield advances and a reduced annual frequency of crop losses, Yoder said. In addition, the agency is incorporating long-term weather data into rate adjustments in an effort to project how frequently insurers might expect to see a catastrophic loss within a given region. Twenty-year data will be compared with 116-year trends to determine whether good or bad weather “events” are over-represented in rate calculations. RMA nonetheless has delayed full implementation of its re-rate plan to help assure counties hardest hit by this year’s drought do not see “astronomical” rate increases as a result of an unusual one-year event, Yoder noted. — Martin Ross
to stay relevant. “Our elected officials know better than to try to enact these harsh restrictions and regulations, to put them in the form of legislation, because the public wouldn’t stand for them. EPA doesn’t have to answer directly to the voters.” The institute’s call went out as the United Nations (UN) convened a new round of global climate talks. Past UN talks yielded pledges by major countries to reduce greenhouse emissions and help poorer nations adapt to climate change. New York Mayor Michael Bloomberg urged the White House to refocus on climate change in the wake of Hurricane Sandy. Last week, UN Intergov-
ernmental Panel on Climate Change Vice President JeanPascal van Ypersele asked, “Is it possible climate warming has not influenced this particular event?” In a recent Farm Foundation post-election roundtable, National Association of Counties policy director Erik Johnston warned EPA also may revisit efforts to regulate farm dust, bring new counties under tight air standards, expand pesticide regulation, and reinterpret regulated “waters of the U.S.” (see accompanying story). “EPA is always seeking to expand its influence particularly over waters that were not set up to be regulated under the Clean Water Act,” Taylor said. “It’ll continue to do so — you can bank on that.”
Farm bill key front in staying EPA’s hand GROWMARK Governmental Affairs Director Chuck Spencer notes a lengthy list of potential federal regulations that have come back on the table with President Obama’s reelection. Those include U.S. Environmental Protection Agency (EPA) greenhouse gas emission standards, ozone rules, stormwater regulations, and the scope of jurisdiction over “the waters of the U.S.” EPA also could look at restricting hydraulic fracturing or “fracking” technologies that could be used to tap new underground natural gas reserves, Spencer said. “There are new regulations that have been under consideration, and I think the outcome of the election certainly brings them back into play, potentially on the same path they were on prior to the election,” he told FarmWeek. “We need to take a very strong perspective on what we can do to make sure we inject science, our opinions, and our positions into this process we have in front of us.” For example, the farm bill debate offers a key opportunity to limit EPA’s scope over pesticide use. Current Senate/House Ag Committee farm bill provisions would prohibit EPA from requiring further federal Clean Water Act (CWA) discharge permits for pesticide applications. The measure, based on a 2011 House bill that stalled in the Senate, argues the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) already covers ag pesticide labeling and use and that CWA requirements thus are repetitive. Most states interpreted EPA’s initial pesticide permit requirements to cover aquatic and some forestry applications. However, Spencer said he sees “nothing to prevent” EPA from expanding requirements to terrestrial farm field applications, though FIFRA “has been the law for decades.” An EPA endangered species push is further complicating pesticide use in key West Coast watersheds, while the midAtlantic states continue to contend with burgeoning nutrient management regulations for the Chesapeake Bay watershed. “It’s my strong feeling that a Mississippi River Basin initiative is the next EPA focal point past the Chesapeake Bay,” Spencer said. “If that’s the case, shouldn’t we be watching and considering activities the East Coasters are doing in response to their challenge that we may be able to implement in a complementary fashion with the KIC (Keep it for the Crop) nutrient program and other watershed-based programs we have in the Midwest? “By gleaning the best applications and opportunities, we could make any type of regulatory push less painful and more decision-based, rather than having it just applied to us.” — Martin Ross
Page 5 Monday, December 3, 2012 FarmWeek
pRODuCTION
Researcher: Past rootworm resistance key to Bt longevity BY KAY SHIPMAN FarmWeek
University of Nebraska entomologist Blair Siegfried has searched for common threads in the history of western corn rootworm resistance to help agriculture extend the effectiveness of tools such as Bt varieties to fight the pest. He spoke at last week’s University of Illinois AGMasters Conference in Urbana. Siegfried noted commonalities “keep cropping up” in the failure of insecticides and crop rotation to effectively control rootworms. In each situation, farmers uniformly applied a single technology over a broad area. “Growers were not given many options,” he added. “There is ample evidence if we chose to manage western corn rootworm with a single tactic that is uniformly widespread, we shouldn’t expect
‘There is ample evidence if we chose to manage western corn rootworm with a single tactic that is unifor mly widespread, we shouldn’t expect anything different.’ — Blair Siegfried University of Nebraska entomologist
anything different,” Siegfried said. “It (resistance development) has happened at least four times.” The entomologist said he has high hopes that RNA interrupter (RNAi) technology will not repeat agriculture’s earlier mistakes and will be able to extend the effectiveness of some current Bt traits. RNAi, the technology used in Flavr Savr tomatoes, is a complex mechanism that gives man the capability of discover-
ing what genes do, he explained. In five years, farmers may see the first commercially available seed with the next generation of rootworm traits involving RNAi, Siegfried speculated. If 2012 is any precursor, new technology will be welcome in Illinois. U of I entomologist Mike Gray said he had been skeptical about May reports of emerging adult corn rootworm beetles — at least a full month earlier than usual.
Farmers, start planning for next fall’s cover crops Illinois farmers need a focused approach and advanced planning for cover crops, but that wasn’t what happened this September and October. “Cover crop vendors’ phones rang off the hook” during those months, said Joel Gruver, Western Illinois University (WIU) crop scientist. Farmers “should not ask what to plant in September and October but ask what to plant (next year) in November and December,” he said. Gruver offered a range of cover crop information during Joel Gruver the University of Illinois AGMasters Conference last week in Urbana. “We need to make sure we have a focused approach with cover crops — not a haphazard (approach to) cover crops,” he warned farmers and crop advisers. Gruver recommended farmers plan the locations that are best suited for cover crops and decide their objectives for planting the crops, such as for use as livestock forage or reducing soil compaction. Farmers also need to consider the window of time needed for planting, confirm seed avail-
“It was the earliest start I’ve ever seen,” Gray said, describing a Cass County cornfield that had “lots of western corn rootworm and lots of damage.” More widespread problems with Bt-resistant rootworms have surfaced in a Corn-Belt “crescent” that includes Northwestern Illinois, northeastern Iowa, southern Minnesota, eastern Nebraska, and eastern South Dakota, according to Gray. “Where we see problems (with rootworm resistance), typically (fields are planted to) ... continuous corn and (farm-
ers) used that (Bt) trait consistently year after year,” Gray said. Siegfried points to the common threads, rather than a single factor, as the cumulative cause for emerging rootworm resistance to a Bt trait. “The result that some adult (beetles) emerged from early Bt fields is proof those weren’t high doses,” Siegfried said. “My guess is not all those problem fields were in an area where growers were not in compliance.” Successful insect-management technology has involved high doses of the toxic substance (so only rare insects can survive), refuges of nontransgenic plants, and high farmer compliance with refuge requirements, according to Siegfried. “I can say with confidence when those factors hold, a (Bt) plant can be sustainable,” Siegfried said.
IRRIGATION DEMAND SKYROCKETS
ability, ensure readiness of seeding equipment and available labor “because it (planting) happens at a busy time” — and have contingency plans ready, Gruver said. Recently, a new decision tool (for Illinois farmers) became available online at {mcccdev.anr.msu.edu}. A farmer may select any county and specified cover crop attributes. The tool offers countyspecific information about establishment dates, frost risk, and frost seeding dates for a variety of cover crops. During his presentation, Gruver fielded several questions about seeding methods and timing. If a farmer contracts for aerial seeding, he should be sure the company has experience with the process, Gruver advised. Aerial seeding charges vary widely. A 2010 WIU study found aerial seeding rates ranged from $8 to $15 per acre in Illinois and Iowa. A farmer who is new to cover crops also needs to carefully consider what to plant and what crop will follow, Gruver noted. “Nobody should start with cereal rye before a corn crop as an introductory cover crop,” he said. “For anyone starting, use cereal rye ahead of soybeans.” — Kay Shipman
Young Leaders shape the future Getting involved with Young Leaders, men and women ages 18 to 35, builds skills and gains young people the experience needed to become an industry leader tomorrow. Young Leader programs provide networking opportunities beyond a member’s county and state with the American Farm Bureau Federation Young Farmer & Rancher (YF&R) Achievement Award, Excellence in Agriculture Award, and Discussion Meet. Three national winners this year will get
their choice of a 2013 Chevrolet Silverado or 2013 GMC Sierra, courtesy of GM, and a paid registration to the 2013 YF&R Leadership Conference in Phoenix, Ariz. National runners-up will receive a Case IH Farmall tractor, courtesy of Case IH, a $2,500 cash prize, and a STIHL Farm Boss, courtesy of STIHL. For more information on the Young Leader program and how to get involved, contact your county Farm Bureau.
Cole Bishop, Michael Clifton, Jeff Richardson, and Arissa Bishop, left to right, place the pivot of an irrigation system supplied by Central Illinois Irrigation in a field near Teheran in Mason County. This year’s historic drought caused sales of irrigation systems to skyrocket, according to Steve Bitner, owner of Central Illinois Irrigation in Havana. “It will be our biggest irrigation year ever,” said Bitner, who has been in the business 23 years. And the situation is far from over. The drought expanded by 2 percentage points nationwide last week. About two-thirds of the continental U.S. remains in moderate or worse drought. (Photo by Ken Kashian)
FarmWeek Page 6 Monday, December 3, 2012
SAfETy
Preventive measure saves Livingston County farmer’s life BY DANIEL GRANT FarmWeek
A decision to take advantage of a county Farm Bureau cost-share assistance/farm safety program recently turned out to be the difference between life and death for a Livingston County farmer. Doug Raber, 38, who farms 1,300 acres in Livingston County, recently walked away from a nasty tractor rollover accident with only minor injuries. And he credits his late father, Don, and the Livingston County Farm Bureau for promoting and installing a rollbar on the family’s John Deere 3020 tractor, for saving his life. “I’m very thankful and grateful my dad had the foresight to put it (the rollbar) on and utilize the Livingston County Farm Bureau grant program that’s available,” Raber told FarmWeek. “I remember my dad at the time said it was a good idea, especially since I’m a young farmer and have a family (a wife and two children 10 years
of age and younger),” he continued. “The rollbar definitely saved my life.” The incident occurred Nov. 24, the Saturday after Thanksgiving. Raber was using the tractor to push a brush pile together on a newly acquired farm when the bank of a drainage ditch gave way. The land shift caused the tractor to twist down an embankment in the blink of an eye. “I backed onto a washed out area and before I knew it, I was on my back,” Raber said. “It was on top of me in a flash. I just clutched the steering wheel and held on.” When the tractor came to rest, upside down, the rollbar provided 6 to 10 inches of clearance between Raber’s face and the tractor’s fender. Rader was able to slide way from the tractor on his own and seek assistance. “I wasn’t pinned or crushed,” he said. “I went to the hospital to get checked out. I had a strained back and stiff neck, but no major injuries. I was pretty lucky.” The Livingston County
Farm Bureau since 2002 has offered cost share assistance to farmers to install rollbars on older tractors. The program also includes a partnership with local dealers who sell the safety bars at cost.
“That’s what it’s for — that one time something like this happens,” Dennis Haab, president of the Livingston County FB, said of the program. The Livingston County rollover protective structures
(ROPS) program won an American Farm Bureau Federation idea exchange award in 2003. The program remains open to farmers interested in retrofitting older tractors with ROPS.
Doug Raber, Gridley, back to camera, and Gary Collins, Flanagan, inspect the John Deere 3020 tractor Raber was operating when he backed onto a washed out area causing the tractor to overturn into a drainage ditch. Raber, who walked away from the accident with only minor injuries, credits his late father, Don, and a Livingston County Farm Bureau program, with saving his life. Inset picture shows the rollbar as the tractor is towed away. (Photos by Amy Raber)
Regulators focusing on dairy sector risks BY MARTIN ROSS FarmWeek
Changes in the dairy industry have heightened the need for stringent, comprehensive safety measures — regardless of whether Uncle Sam is watching.
That’s according to Dennis Ray, occupational safety specialist and business development director with the National Farm Medicine Center (NFMC). The U.S. Occupational Safety and Health Administra-
tion (OSHA) has intensified scrutiny of the dairy industry. Ray has researched hazard prevention strategies for a labor-intensive, mechanized sector open to both livestockand grain-related risks and increasingly reliant on tempo-
TESTING REACTION TIME
Bob Aherin, University of Illinois safety specialist, uses a reaction timer to demonstrate how fast things can happen when around heavy machinery. The timer demonstrates the time it takes a person to move to avoid serious injury, which often is not possible. Ogle County Extension sponsored the grain handling and safety workshop last week at the Farm Bureau office in Oregon. (Photo by Cyndi Cook)
rary, foreign-born laborers working more shifts and longer hours. Roughly nine months ago, OSHA launched a 12-point safety program focused on Wisconsin’s dairy industry. The state’s ag death rate had risen 66 percent in 2010, accounting for 32 of 91 of Wisconsin’s occupational deaths. OSHA regulates businesses with 10 or more employees or those businesses that house migrant laborers. Ray helps dairymen identify and deal with hazards prior to OSHA farm inspections. “OSHA had planned on doing a dozen visits this year, and ended up doing 15,” he told FarmWeek. “Some farmers just expect there to be ‘hazards of the job.’ But there really don’t have to be. There are costs to those hazards — an insurance cost; the time needed to replace a worker or have someone fill in while he recovers. There is a cost; it does affect your bottom line in farming.” Dairy safety encompasses manure safety, silo gas dangers, animal behavior, electrocution risks, and risks associated with grain production and feed handling. Wisconsin’s dairy injuries cover the gamut: Ray noted NFMC has emphasized tractor rollover protection and retrofitting.
OSHA focuses on tractor and skid steer safety, proper use of power takeoff/transmission guards, electrical “lock-out” systems, labeling of confined spaces, fall risks related to horizontal bunker silos, long-term noise exposure, and labeling of on-site chemicals. Chemical reporting requirements recently changed, Ray noted. Further, many operators are unaware they must maintain and post annual onfarm injury records — according to Ray, the first thing an OSHA inspector’s going to ask for. More outside hiring has increased risks related to unfamiliarity with equipment or operations and, in some cases, a worker language barrier. NFMC provides OSHArequired training in both English and Spanish. The center’s Agriculture Safety Consulting program includes a multi-cultural, bilingual staff that develops tailored programs for Hispanic workers. Bilingual safety signage is crucial, Ray argued. “Labels are only as good as the people who understand them,” he said. “If a sign for a confined space just says ‘Don’t enter,’ they might not know what that means. They’re not going to know the hazards of the chemicals they’re handling.”
Page 7 Monday, December 3, 2012 FarmWeek
production
Analyst: Farmers will respond to tight crop supplies BY DANIEL GRANT FarmWeek
The crop markets should give farmers plenty of incentive to boost corn and soybean plantings next year. Jody Lawrence, president of Strategic Trading Advisors, at the recent Illinois Commodity Conference in Bloomington predicted U.S. farmers next year could increase corn and soybean plantings by a combined 4 million acres. Informa Economics this fall projected U.S. farmers next spring will plant 97.5 million acres of corn and 80 million acres of beans. If realized, plantings of each crop in 2013 would be up from this year’s totals of 96.9 million acres of corn and 77.2 million acres of beans. “It would be the largest
amount of corn and soybeans ever planted,” Lawrence said. “Why? Because the margins are great.” The additional corn and soybean acres likely will come at the expense of cotton and to a lesser extent wheat plantings, according to the analyst. Lawrence predicted cotton plantings next year will decrease by 2.3 million acres and wheat plantings could be slightly less than a year ago. He also projected 2.6 million acres of recently expired Conservation Reserve Program contracts will be put back into production next year. “The future looks like the past,” Lawrence said. “The southern states are getting back in the corn business (because cotton does not appear to be as profitable).”
Soy growers strive for statewide quantity, quality improvements Many farmers this year were pleasantly surprised to find their soybean yields were quite respectable, considering the crop endured the worst drought in nearly a quarter century. USDA last month pegged the average soybean yield in the state at 43 bushels per acre, which is down just 4.5 bushels from the previous year. But members of the Illinois Soybean Association (ISA) believe there still is room for improvement of both the quantity and quality of soy production in the state. ISA this year held its Yield Challenge for the third consecutive growing season. Soybean growers in the competition were challenged to grow soybeans in side-by-side plots, using innovative techniques to boost yields in one plot and traditional practices in other plots. “We had some decent results,” said Ross Prough, an ISA board member and farmer from Greenfield. “It depended where you were in the state.” Prough entered two plots in the Yield Challenge and produced yields of 70 and 72 bushels per acre compared to the traditional plots on his farm that yielded 65 and 69 bushels, respectively. “I figured it cost an extra $40 to $42 per acre (for the more intensive management of the beans in the innovative plots),” Prough said. “It (the additional yield) paid for the extra cost.” Winners of the Yield Challenge in each of the ISA districts were Ag View North (District 1), Elburn Co-op (District 2), Blandinsville CPS (District 3), Sunrise FS (District 4), Ehler Bros. Seed (District 5), Shipman Elevator (District 6), and FHR U-Trough (District 7). ISA also recognized three farmers — Bob Pierson (District 1), Don Rabe (District 1), and Dan Arkels (District 2) — who achieved 80-plus bushel yields. “We know it can be done,” Prough said of the increased yields. Illinois farmers each year produce about 160 million bushels of beans. ISA hopes to increase statewide production to 200 million bushels, according to Prough. “We feel there will be increased demand for soybeans down the road,” he said. “We want to meet that demand.” But in order to meet world demand for soy, ISA also is striving for improved bean quality. Processors require beans with at least 35 percent protein and 19 percent oil levels to avoid discounts on the world market. A soybean quality survey conducted by the U.S. Soybean Export Council found U.S. soy protein levels have been trending down since the 1980s and fell below 35 percent about five years ago. U.S. soy oil levels were below 19 percent for the entire time period in the survey. “It (improving oil and protein levels) has become a focus at the association,” Prough said. “We need to get plant breeders on board to look at that.” For more information, visit the ISA website {ilsoy.org). — Daniel Grant
Lawrence projected corn prices will remain bound in the mid-$7 range through the end of the year while fluctuations
If South America has normal weather, he predicted soybean production there will total about 4 billion bushels.
‘The future looks like the past. The southern states are getting back in the corn business (because cotton does not appear to be as profitable).’ — Jody Lawrence President, Strategic Trading Advisors
in the soybean market will be dependent on South American weather and Chinese bean demand.
“The story there (in South America) is neutral to bearish,” Lawrence said. “The area that was hot and dry in Brazil has
gotten rain the last three weeks. However, planting is a little behind.” Demand should keep a floor under bean prices, though. China committed to 60 percent of its annual bean purchases in just the first three months of the marketing year. Lawrence, in his new-year outlook, predicted commodity prices will remain strong, stocks entering the year will remain tight, input prices will be stable, crop insurance prices will act as a floor, and basis levels could heat up to draw out the last of the old-crop corn and wheat.
Livestock industry provides valuable nutrients Livestock production is extremely important to the state’s economy. Illinois’ livestock industry each year generates about $1.9 billion in direct economic output along with about $292 million in state taxes. The value of livestock also is increasing within the ag industry as a byproduct of animal ag, manure, is an essential nutrient that can offset fertilizer costs. “Livestock produce some valuable renewable resources,” Nic Anderson, business developer for the Illinois Livestock Development Group, said at the recent Illinois Commodity Conference. Anderson estimated manure currently is worth about $100 per acre. Six pigs can fertilize about one acre per year, he noted. The value of manure for nutrient management plans is increasing as commercial fertilizer prices remain high. Prices statewide last week averaged $869 per ton for anhydrous ammonia (up $4.22), $631 per ton for diammonium phosphate (up $1.56), and $599 per ton for potash (up $1), according
to the biweekly Illinois Production Cost Report. Current economics suggest a 2,400-head swine operation can generate about $15,000 in additional income from manure, according to Anderson. The manure helps fertilize crops which are fed back to the livestock as part of a renewable cycle. Hogs each year in Illinois consume about 94 million bushels of corn and 28 million bushels of soy meal, said Anderson. Anderson, therefore, said he believes Illinois is a prime location to expand the livestock industry to take advantage of the feed availability and cropland for nutrient use. “There’s a lot of potential for livestock growth in Illinois,” he said, noting Illinois produces just 25 percent of the milk consumed in the state. — Daniel Grant
U of I offers certified livetock training University of Illinois Extension will offer several Livestock Manager Certification workshops, and producers are encouraged to preregister to ensure a seat for the session that fits their schedule. Advance registration also is encouraged to allow participants to receive a manual in advance, which is important for those planning to take a written Illinois Department of Agriculture (IDOA) test to get their manure management certification. The state Livestock Management Facilities Act (LMFA) requires producers with operations designed for more than 300 animal units to have manure management certification and to renew that certification every three years. Producers with more than 300 animal units must attend an approved training session or pass a written IDOA test. Producers with more than 1,000 animal units must attend an approved training session and pass a test. U of I Extension also offers a series of five quizzes on the Internet. Passing all five quizzes will meet the state requirement of attending a certified livestock workshop. The training manual is the national Livestock and Poultry Environmental Stewardship (LPES) Curriculum. Participants do not need a new manual if they have a 2003 or newer one. Workshops that are designated as beef/dairy or swine emphasis will concentrate on those production facilities. Workshops that begin at 8:30 a.m. will end at 12:30 p.m. with the IDOA exam being adminis-
tered afterward. The 9:30 a.m. workshops will end at 2 p.m., followed by the IDOA exam. Participants who arrive 20 minutes late cannot be certified as having attended the workshop. The first workshop will be Dec. 11 at 8:30 a.m. in the McLean County Farm Bureau Building, Bloomington. The January workshops, dates, and locations are: Jan. 8, 8:30 a.m., (swine emphasis), Knox County Extension office, Galesburg; Jan. 9, 8:30 a.m., Adams County Extension office, Quincy; Jan. 22, 9:30 a.m.,(beef/dairy) Effingham County Extension office, Effingham; and Jan. 23, 9:30 a.m., (beef/dairy) Clinton County Extension office, Breese. The February workshop dates and locations are: Feb. 26, 9:30 a.m., (beef/dairy) Stephenson County Farm Bureau office, Freeport; and Feb. 27, 8:30 a.m., DeKalb County Farm Bureau office, Sycamore. The final workshop will be at 8:30 a.m. March 7, in the IDOA building, Illinois State Fairgrounds, Springfield. To register for a workshop or buy a training manual or CD with a credit card, call the College of Agricultural, Consumer, and Environmental Science marketing and distribution division at 800-345-6087. Early registration fee is $30 per person and $20 for each additional registrant from the same farm. The walk-in registration fee is $45 per person. For more information, contact Laura Pepple, U of I Extension coordinator, at 217-244-0083 or email her at lpepple2@illinois.edu.
FarmWeek Page 8 Monday, December 3, 2012
RESEARCH
U of I lab clears the air on agriculture ventilation “Customers want unbiased, third-party and standardized testing procedures,” Ford said. BESS Lab works with large manufacturers as well as small companies that lack any testing facilities and do everything from product development to final testing in the Urbana lab. Many international ventilation companies, especially those that sell in U.S. markets, test their products at the BESS
BY KAY SHIPMAN FarmWeek
A unique University of Illinois laboratory acts as the “Consumer Reports” of ag ventilation products for the United States and many foreign countries. The BioEnvironmental and Structural Systems (BESS) Lab provides the only third-party, unbiased testing of ventilation systems used by the livestock and poultry industry around the world. And companies from across the country and the world come to the Urbana campus for testing data. Last week, Steven Ford, a research engineer in the U of I agricultural and biological engineering department, worked with a representative of Monitrol, a Quebec company, and tested fans for the Canadian market. Manufacturers test their fans’ efficiency and airflow performance at various static pressures. Ford said test results can provide valuable information for farmers. “It allows someone buying a
‘Customers want unbiased, thirdpar ty and standardized testing procedures.’ A fan made by Monitrol, a Quebec company, is ready for testing at the University of Illinois’ BioEnvironmental and Structural Systems (BESS) Lab, Urbana. The research and testing lab offers the only third-party testing of ag ventilation products in the U.S. (Photos by Kay Shipman)
fan to consider, ‘Should I pay another $200 for this fan?’” he said. By comparing fan efficiencies, a farmer may learn he would save $100 a year by buy-
ing a more expensive but more efficient fan, Ford added. Farmers, especially those building new facilities, should be aware of the BESS Lab and
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the data it has to offer, according to Ford. “They need to ask the questions. What kind of efficiency (does the fan have and has it) been tested by a third party?” he said. In addition to testing ag ventilation and circulating fans, the BESS lab also offers testing of poultry light traps, airflow-static pressure tests on air inlets, and greenhouse insect screening. Before the BESS Lab opened in 1989, a consumer could ask if an ag fan was efficient, but wasn’t able to confirm the information received, according to Ford.
— Steven Ford University of Illinois
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Steven Ford, a research engineer with the University of Illinois department of agricultural and biological engineering, checks fan test results at the U of I’s BioEnvironmental and Structural Systems (BESS) Lab, Urbana. The lab posts product test results online at {bess.illinois.edu}.
Page 9 Monday, December 3, 2012 FarmWeek
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Illinois broadcaster Orion Samuelson took a stack of his newly published book in which he wrote about his life to the Illinois Farm Bureau annual meeting in Chicago last week. Samuelson, who has broadcast on Chicago’s WGN-AM for more than 50 years, authored “You Can’t Dream Big Enough,â€? a 400-page FarmWeekNow.com hardcover “ ‌ salute to the men For the latest information and and women who put food on our news from the Illinois Farm tables, roofs over our heads, and Bureau annual meeting, go to clothes on our backs.â€? From humFarmWeekNow.com. ble beginnings on a Wisconsin dairy farm, Samuelson, along with his long-time on-air partner, Max Armstrong, a veteran of the RFD Radio Network in Illinois, are among the most recognized broadcasters in the state and nation. The two also produce the weekly TV show, “This Week in Agribusiness,â€? which airs over DirecTV, DISH, and approximately 70 TV stations around the country. IFB members who didn’t attend or missed Samuelson’s book signing at the annual meeting may purchase the book on the Internet at {bigobook.com}.
IDOA promoting local ag products for Christmas gifts The Illinois Department of Agriculture (IDOA) wants local ag products to top holiday shoppers’ gift lists. Through Dec. 25, IDOA is repeating its successful Christmas promotion of local products. Each day, one individual will be selected at random from IDOA’s Facebook and Twitter accounts to receive that day’s featured product. To be eligible, individuals must “like� IDOA’s Facebook page or follow the agency on Twitter. Only those at least 21 may win gifts donated by Illinois wineries. The Illinois Pork Producers Association and Raber Packing of Peoria are donating a pork gift package as one of the prizes. Other prizes include foods, wines, plants, soy candles, and other Illinois products. “Illinois is a leading food processing state and offers a wide assortment of delicious items to choose from,� said Ag Director Bob Flider. “Plus, every purchase helps not only our agriculture industry but also our state economy.� Last year’s initial 12-day promotion and contest was so successful that IDOA expanded the campaign to 25 days this year. To sign up, visit and “like� IDOA’s Facebook page at {facebook.com/IllinoisDepartmentofAgriculture} or follow IDOA on Twitter at {https://twitter.com/#!/ILAgMarkets}.
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FarmWeek Page 10 Monday, December 3, 2012
energy
Stover-to-ethanol answer to excess residue concerns? BY MARTIN ROSS FarmWeek
DuPont has taken the next step toward making next-generation ethanol a reality and, according to DuPont Industrial Biosciences biofuels director Jan Koninckz, creating a biomass cushion for corn growers. DuPont broke ground Friday on a 30-million-gallon-ayear cellulosic ethanol plant in Nevada, Iowa. The company will work with 50 to 100 farmers within a roughly 40-mile radius of the plant to gather nearly 360,000 dry tons of corn stover per year for conversion into fuel. DuPont plans to collect at least two tons of stover per acre from participating growers’ fields following harvest. Working with farmers, equipment suppliers, contract harvesters, Iowa State University researchers, and its own corn subsidiary Pioneer, DuPont has gained “a good understanding of what’s needed, agronomically, for a farmer to do this in a sustain-
able way,” Koninckx told FarmWeek. As a result, stover collection should be “synergistic with the farmer’s operation,” he said. Stover collection is “more reliable” than the grain harvest and would provide an added income cushion in years such as 2012, Koninckx said. “I think this is something that will really change corn agriculture over the coming years,” he argued. “Before long, we’ll think of two crops being grown — the grain and the stover. We foresee a continued trend of increasing (corn) yields and, therefore, a continued increase in stover supply.” That parallel development poses concerns about the potential impact of excess residues on corn yields, according to a new PioneerDuPont analysis. Partial stover removal would help accelerate spring soil warming, improve stand establishment and rotation options, and reduce nitrogen immobilization, disease pressure, and tillage needs, the study concluded.
That’s “without negatively impacting the health and productivity of the soil,” DuPontPioneer agronomist Andy Heggenstaller said. Highly productive, relatively flat fields are best suited for stover removal, Heggenstaller suggested. Koninckx envisions the new Iowa plant as a full-scale “demonstration” model for future DuPont-licensed cellulosic facilities. He foresees stover-based production “rolling out very much like the corn ethanol industry.” He hailed the U.S. Environmental Protection Agency’s decision to uphold 2013 ethanol requirements under the federal Renewable Fuel Standard (RFS2). Koninckx deemed “stability of policy” crucial in fostering new technologies that emphasize use of non-food fuel sources. Extension of a soon-toexpire, $1.01-per-gallon federal cellulosic ethanol tax credit “would add to that stability,” he said. “In this large and mature energy market, it is important
that a new technology like the one we are commercializing has a stable and predictable home,” Koninckx said. “These investments we are
going to make and that our partners and others like them will make in the future are large. Uncertainty is the enemy of these investments.”
Biofuels industry: Restaurant study ignores energy impact on food costs Biofuels interests view a new report by a major chain dining group as unpalatable and low on facts. A report commissioned by the National Council of Chain Restaurants (NCCR) concludes corn ethanol mandates under the federal Renewable Fuels Standard (RFS2) could cost its members as much as $3.2 billion annually. Federal Ethanol Policies and Chain Restaurant Food Costs suggests fast food restaurants could see cumulative cost increases beyond $2.5 billion as a result of ethanol mandates recently upheld by the U.S. Environmental Protection Agency. Full-service restaurants could incur more than $691 million as a result of RFS2 fuel requirements, the report estimated. NCCR Executive Director Rob Green argued use of cornbased ethanol under the RFS2 “has dramatically distorted the market and increased costs throughout the food supply chain.” He maintained the the chain restaurant industry “has witnessed marked increases in commodity prices and associated costs to the tune of billions of dollars a year.” Tom Buis, CEO with the biofuels group Growth Energy, argued the rising cost of energy is “the true culprit behind rising food prices.” Commodity costs account for only 14 percent of average food price, while the rest can be attributed to energydriven processing, packaging, wrapping, storage, refrigeration, and transportation costs,” Buis said. “The latest attack on America’s renewable energy policy blames biofuel for food cost increases while ignoring the 300pound barrel of imported oil in the room,” argued Brent Erickson, executive vice president of the Biotechnology Industry Organization’s Industrial and Environmental Section. Meanwhile, Renewable Fuels Association President Bob Dinneen argued food prices are not rising abnormally high. According to USDA and the Department of Labor, annual food inflation in 2012 and 2013 will be “right in line” with the 20-year average, Dinneen said. In fact, post-RFS2 food inflation rates have, on average, been lower than they were throughout the 1980s and early 1990s, he stated. A recent International Centre on Trade and Sustainable Development analysis concluded corn prices wouldn’t have been any different in 2009-2010 without RFS2 mandates. Beef, broiler, pork, and egg prices would have been no different from 2005-2010 with or without the RFS2, that study concluded.
Auction Calendar Mon., Eve., Dec. 3. 6 p.m. Logan Co. Land Auc. Mildred E. Shelton Estate, LINCOLN, IL. Sanert Auction Service. Mon., Dec. 3. 9 a.m. Absolute Eq. Auc. Martin Sullivan Inc., HAMILTON, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Mon., Dec. 3. 10 a.m. Grundy Co. Farmland Auc. Mitchell Farm, MAZON, IL. Richard A. Olson & Assoc. richardaolson.com Tues., Dec. 4. 1 pm.. Whiteside Co. Land Auc. Charles Hamblock Heirs, ROCK FALLS, IL. Van Adkisson Auction Service, LLC. vanadkisson.com Wed., Dec. 5. Online Unreserved Auc. www.bigiron.com Fri., Dec. 7. 9:30 a.m. Farm machinery and misc. eq. Peabudy’s North Eq., PECATONICA, IL. Powers Auction Service and Pro-Auctions, LLC. Fri., Dec. 7. 10 a.m. Retirement Farm Auc. Glenn and Miriam McNeil, WATAGA, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com or vanadkisson.com Fri., Dec. 7. 7 p.m. Shelby Co. Farmland Auc. Benjamin Howard Tull Est., SHELBYVILLE, IL. Gordon Price Auction Service. www.priceauction.com Fri., Dec. 7. 10 a.m. Henry Co. Land Auc. WOODHULL, IL. Hertz Real Estate Services. www.hertz.ag Sat., Dec. 8. 10 a.m. Retirement Auc. Gary H. and Ladonna Oxford, OMAHA, IL. Jamie Scherrer Auc. Co. www.jamiescherrerauction.com Sat., Dec. 8. 10 a.m. Jefferson Co. Land Auc. BELLE RIVE, IL. BuyAFarm.com Sat., Dec. 8. 10 a.m. Investment Land Auction. First National Bank of Ottawa, MORRIS, IL. Richard A. Olson & Assoc. richardaolson.com Mon., Dec. 10. 9:30 a.m. Lg. 3 Generation Farm Close-Out Auc. MLS Farm, Inc., SHELBYVILLE, IL. Cory Craig, Auctioneer. www.corycraig.com Mon., Dec. 10. 10 a.m. DeWitt Co. Land Auc. FARMER CITY, IL. Hertz Real
Estate Services. www.hertz.ag Tues., Dec. 11. 10 a.m. Farm Eq. Auc. Sharp Farms Inc., NEWARK, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com Tues., Dec. 11. 10 a.m. Douglas Co. Land Auc. TUSCOLA, IL. Hertz Real Estate Services. www.hertz.ag Wed., Dec. 12. Online Unreserved Auc. www.bigiron.com Wed., Dec. 12. 6 p.m. Effingham Co. Land Auc. Jolene Gates Trust, EFFINGHAM, IL. Auctions/Realty By Schackmann, Inc. www.schackmann.com Wed., Dec. 12. 10 a.m. Lg. Retirement Auc. Agri Tech Farms, NEW BOSTON, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com or vanadkisson.com Thurs., Dec. 13. 10 a.m. Absolute Inventory Auc. Johnson Tractor., JUDA, WI. Powers Auction Service Co., #91. www.powersauction.com Fri., Dec. 14. 10 a.m. Late Model C-IH Eq Auc. Barry Brown Est., GALESBURG, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Sat., Dec. 15. 9:30 a.m. Livingston Co. Land Auc. F. David and Frances Dixon Est., ODELL, IL. Immke and Bradleys’ Auc. Service. biddersandbuyers.com/immke Sat,. Dec. 15. 10 a.m. Stark Co. Land Auc. Nancy Rennick, TOULON, IL. John Leezer, Broker. www.illinoisfarms4sale.com or john@leezeragency.com Sat., Dec. 15. 10 a.m. Late Model Farm Eq. Dugan Farms, MULBERRY GROVE, IL. Aumann Auctions. www.aumannauctions.com Mon., Dec. 17. 9 a.m. Farm & Construction Eq. Con. Auc. TREMONT, IL. Cal Kaufman and Brent Schmidgall, Auctioneers. tremontconsignmentauction@yahoo.com Tues., Dec. 18. 6:30 p.m. Marshall Co. Real Estate Auc. Donald Hatten Estate, WASHBURN, IL. Kaufman Auction Service. www.calkaufmanauction.com
Page 11 Monday, December 3, 2012 FarmWeek
FB IN ACTION
Beef issues highlight of ‘adopted’ lawmakers’ tour BY CHRISTINA NOURIE
Two “adopted” legislators, state Reps. Rita Mayfield (DWaukegan) and Thaddeus Jones (D-Calumet City) learned more about the state’s beef industry during a recent tour co-hosted by the Macoupin County Farm Bureau and the Illinois Beef Association. The two urban legislators were joined on the tour by local legislators Rep. Wayne Rosenthal (R-Litchfield) and Sen. Sam McCann (R-Carlinville). The lawmakers were briefed on several beef industry issues, and they discussed other legislative issues during a lunch with local farmers.
Cattleman Larry Rhodes hosted the group for a tour on his family farm near Carlinville. The legislators saw first hand how livestock farmers care for their animals, protect the environment, and provide a healthy food supply. Both “adopted” legislators commented on the dedication and hard work needed to run a livestock farm. They said they were surprised only two people run the Rhodes farm and will have new appreciation for beef farmers the next time they eat a steak or hamburger. Christina Nourie is the northeast legislative coordinator for Illinois Farm Bureau. Her email address is cnourie@ilfb.org.
Farm groups donate pork Illinois commodity organizations last week donated more than 13,000 pounds of ground pork to the Midwest Food Bank in Bloomington. The pork, which was donated by the Illinois Pork Producers Association (IPPA), Illinois Corn Marketing Board, and Illinois Soybean Association (ISA) through the Pork Power: Partnering to Fight Hunger in Illinois campaign, will be distributed to needy families throughout Central Illinois. “As farmers, we believe it is our responsibility to feed the world,” said John Hagenbuch, a farmer from Utica and an ISA board member. Last week’s donation will provide more than 52,000 servings of protein. The campaign since 2008 has generated more than 1.25 million servings of pork for Illinois families. “It is important that Illinois families have access to protein not just during the holiday season but throughout the year,” said Mike Haag, a pork producer from Emington and past president of IPPA.
Specialty crops, agritourism, organic conference slated The Illinois Specialty Crops, Agritourism, and Organic Conference will be Jan. 9-11 at the Crowne Plaza Hotel in Springfield. The conference will feature more than 100 speakers and 50 exhibitors. The agenda will offer four concurrent preconference workshops, general sessions, and breakout sessions. On Jan. 9, participants may attend one of four preconference workshops on cover crops, high tunnels, basics of orchard establishment, and sweet corn. The Jan. 10 general session will highlight the state’s specialty crops industry and address several issues, including produce recalls, severe weather, herbicide drift, food safety, and new pests. Breakout sessions will be offered Jan. 10-11. Session topics include: agritourism, fruits, vegetables, herbs, organic foods, and emerging issues. The annual banquet will be Jan. 10 and feature a keynote address by Holly Spangler, farm wife and associate editor at Prairie Farmer magazine. The 24th annual apple cider and 11th annual hard cider contest will be held in conjunction with the conference. To receive registration materials or exhibitor information, contact Diane Handley at 309-557-2107 or dhandley@ilfb.org. A detailed conference agenda and cider contest details are online at {specialtygrowers.org}. A block of Crowne Plaza Hotel rooms has been reserved for $89 per night. Call the hotel directly at 217-529-7777 and ask for the Illinois Specialty Crops, Agritourism, and Organic Conference room block to reserve rooms at the conference rate.
Macoupin County cattleman Larry Rhodes, left, answers questions from state Reps. Rita Mayfield (DWaukegan) and Thaddeus Jones (D-Calumet City) during their recent tour of his farm. The Macoupin County Farm Bureau and the Illinois Beef Association co-hosted a meeting and farm tour for the two urban legislators who participate in Illinois Farm Bureau’s Adopt a Legislator program. (Photo by Christina Nourie)
FarmWeek Page 12 Monday, December 3, 2012
FB IN ACTION
IAA Foundation offers scholarships to support ag The IAA Foundation will award 64 scholarships ranging from $1,000 to $7,500 per year for the 2013-2014 school year. Agriculture students and Illinois Farm Bureau members and their children are eligible to apply. In all, the scholarships offered will total $148,100. “It is a great privilege to support our next generation of leaders and encourage continuing education in agricultural fields,” said Susan Moore, IAA Foundation director. Students may apply for a variety of scholarships, including the Illinois Farm Bureau Legacy of Leadership Scholarship, which is new this year. One $7,500 Legacy scholarship is available for students who are beginning their junior year, attending a four-year university in Illinois, majoring in a field related to the direct support of the agriculture industry, and who illustrate exemplary leadership.
Three $7,500 general scholarships are available to students accepted for enrollment or enrolled at an accredited college, university, or community college in the State of Illinois. Another two $1,000 scholarships, and a $1,100 IAA Foundation scholarship are available and may be used at any accredited university, college, or community college in the nation for the study of agriculture, agribusiness, or an agriculture-related major. Three Robert Rouse $1,100 scholarships are available for students who are studying agriculture or nursing, with preference given to Lake County residents. The William Kuhfuss $1,000 scholarship is available for a student with an agricultural background or studying agriculture at an Illinois postsecondary institution. The Greg Carney $1,500 scholarship is available to a University of Illinois student who is actively involved in
production agriculture and a current or former 4-H member. The Dale Butz $1,000 scholarship is for a student involved in production agriculture attending any educational institution. The Illinois Award $1,000 scholarship will be awarded to a graduating high school senior who is majoring in a agriculture or agriculture-related field. Priority will be given to students from Cass, Morgan, Stark, and Henry counties. The Walter J. and Martha J. Wills $1,200 scholarship will be awarded to a student at Southern Illinois University with a major in an agriculture program. Two $1,000 Heartland National Agri-Marketing Association Steven A. Hammerschmidt Memorial Scholarships will be awarded to a junior- or senior-level college student majoring in agriculture or agribusiness with an interest in agriculture marketing, sales, or communications at
EXPLORING AG CAREERS
Illinois State University (ISU) and the U of I (one scholarship for a student at each university). Ten $4,000 scholarships will be awarded to students majoring in crop science at an Illinois university. The university must offer an agricultural course of study with a major in crop production or crop science discipline and must provide an emphasis on soybeans. Twelve additional scholarships of $2,000 each are funded by Prairie Farms Dairy as a tribute to former Prairie Farms Dairy executives Fletcher Gourley, Leonard Southwell, and Roger Capps. The scholarships are for children of Prairie Farms Dairy employees and producers who sell milk to Prairie Farms. A total of 20 Dorothy and Wilhelmine Ratermann $1,000 scholarships are available to residents of Southern Illinois counties. The scholarships may be applied toward any major at any accredited university, college, or community
Coles County farmers learn about south suburban issues BY CHRISTINA NOURIE
Jackie Jones, left, Illinois Farm Bureau education manager, explains to Monticello High School agriculture students during an acquaintance day event last week how to use soybeans and other materials as teaching tools. During their exploration of local agriculture careers, the students also heard from Dan Maggart, the Piatt County Service Co. general manager. Piatt County Farm Bureau has organized the event for several years. (Photo by Karen Jones, GROWMARK Inc.)
Drought linked to infections in Missouri horses
A University of Missouri equine veterinarian warns the negative impacts of the drought have caused an increase in Missouri horses infected with Corynebacterium pseudotuberculosis. It is a bacterial infection that can cause painful swelling, abscesses, and inflammation in the legs, chests, and abdominal cavities. “Under normal conditions, this disease is uncommon in Missouri,” said Philip Johnson, a professor of equine medicine and surgery in the College of Veterinary Medicine. Because of extremely dry weather, an abnormally large number of cases have popped up throughout Missouri. The disease is contracted through abrasions in the skin, as well as by bites from flies and ticks.
Johnson advised horse owners to watch for swelling in their horses’ chests or swollen abscesses and sores on their legs. Infected horses also may be lethargic and have a loss of appetite. An infection left untreated for too long could result in horse lameness and even death if the infection moves into internal organs. Johnson also recommended quarantining any horses suspected of being infected, because a draining abscesses can spread the disease to healthy horses. Treatment typically involves draining any abscesses close to the surface of the skin and allowing them to heal. He recommended antibiotics only if the abscesses are deeper under the skin or if the infection has moved to the internal organs.
college in the nation. All applicants must be high school seniors accepted for enrollment or students already enrolled at an accredited college, university, or community college. Scholarships are awarded for exceptional academic ability, leadership, and financial need. Previous winners of an IAA Foundation scholarship are eligible to apply again. Full eligibility guidelines, applications, and an activities template are available at the Foundation website {iaafoundation.org}. Students attending Illinois State University with declared majors in the Department of Agriculture who are selected for an IAA Foundation scholarship may be eligible for an additional award from the university. Completed applications must be postmarked on or before Feb. 1, 2013. For more information, contact your county Farm Bureau, the IAA Foundation at 309557-2230, or email charmsgarman@ilfb.org.
Several Coles County Farm Bureau members recently visited their “adopted” legislator, Rep. Will Davis (D-East Hazel Crest), in his south suburban district where they were joined by members of the Cook County Farm Bureau. Davis and the Coles County Farm Bureau have been linked for seven years through the Adopt a Legislator program. The group discussed the representative’s very diverse district. He noted many of his district’s main legislative concerns were similar to those of downstate Illinois — better funding for schools, job growth and economic development, and good access to health care. Davis also talked about the issue of food deserts. Many populated areas of his district lack of full-service grocery store offering fresh fruits, vegetables, and other foods needed for a healthy diet. The group then took a driving tour of the district, stopping at the former site of a busy shopping center and economic hub that eventually was closed, abandoned, and torn down. Davis said he is working to open new retail stores in the area to help revitalize the neighborhood.
The group then traveled west of Davis’ district to tour the Chicago High School for Agricultural Sciences (CHSAS). The farmers said they were impressed that a school with a focus on agriculture and ag careers is located in the city. The farmers were taken on a student-led tour that included the animal science, ag mechanics, ag finance and horticulture departments. Approximately 40 percent of CHSAS graduates major in agriculture-related fields in college. After the school tour, Davis took his guests to a well-known local eatery, Hog Wild, known for its pork chop sandwiches and ribs. The tour concluded at the Thornton Food Pantry in Harvey. The pantry distributes food to many economically disadvantaged people in the area. Davis said he appreciated that the Coles and Cook County farmers spent a day in his district learning about urban issues. He said he hopes to attend the Illinois Farm Bureau annual meeting in December. Christina Nourie is the northeast legislative coordinator for Illinois Farm Bureau. Her email address is cnourie@ilfb.org.
Page 13 Monday, December 3, 2012 FarmWeek
frOm ThE cOunTiEs
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UREAU — The Young Leader Committee will sponsor a holiday gathering and Ugly Sweater party at 6 p.m. Thursday, Dec. 13, at the Ye Olde Underground Inn, Princeton. Members who are 18 to 35 are invited. A contest for the ugliest sweater will be held. Call the Farm Bureau office at 815-875-6468 by Monday, Dec. 10, for reservations or more information. • Country Financial will sponsor an education funding and wills seminar at noon Wednesday, Dec. 12, at Wise Guys, Princeton. Lunch will be served. Rick Morgan,
Country Financial senior financial security consultant, will be the speaker. Call the Country Financial office at 309-945-4800 for reservations or more information. HAMPAIGN — The District 12 Young Leaders Committee will sponsor its annual Illini Farm Toy Show Jan. 4-6 at the Holiday Inn and Convention Center, Urbana. Dates and times are Friday, 5 to 9 p.m.; Saturday, 9 a.m. to 5 p.m.; and Sunday, 9 a.m. to 2 p.m. Cost is $3 for adults, $2 for children ages 612; and under 6, free. A live auction will be at 10:30 a.m.
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District 18 Equine Committee member Mike Meisenheimer gave a bites and bits presentation to a group of young equine enthusiasts during the recent Massac County Youth Fair. (Photo courtesy Massac County Farm Bureau)
Youth equine clinic seen as a hit Sixty youth and parents attended the recent youth equine clinic at the Massac County Youth Fair. The program rotated participants among five presentations: happy trails, presented by the U.S. Forest Service; bits and bites, presented by Mike Meisenheimer and Garry Jenkins; horse first aid, presented by veterinarian Bambi Fox; brushes and combs, presented by Cheryl and Dylan Easley; and tack and saddle cleaning, presented by Sue Perina. After viewing the presentations, everyone gathered outside for a “Horse Sense” activity presented by Sheryl King. Lunch was provided by the District 18 Equine Committee. After lunch, the youth were quizzed on things they learned at the clinic. Each participant left with a bucket of goods either bought by the Equine Committee or donated by Country Financial and McKinney Western Store. A similar event is expected to be held in the spring.
DATEBOOK Dec. 10 Farm Economic Summit, I Hotel and Conference Center, Champaign. More information at {farmdocdaily.illinois.edu}. Dec. 11 Farm Economic Summit, Illinois Center for Agriculture, Sycamore. More information at {farmdocdaily.illinois.edu}. Dec. 12 Farm Economic Summit, Best Western Prairie Inn, Galesburg. More information at {farmdocdaily.illinois.edu}. Dec. 13 Farm Economic Summit, Holiday Inn, Mt. Vernon. More information at {farmdocdaily.illinois.edu}. Dec. 14 Farm Economic Summit, Doubletree Hotel, Bloomington. More information at {farmdocdaily.illinois.edu}.
Saturday. Admission on Sunday is free with a free-will donation going to local Ag in the Classroom programs. HRISTIAN — An Ameren high-voltage transmission line meeting will be at 3 p.m. Wednesday, Dec. 19, at the Farm Bureau office. Illinois Farm Bureau staff members will discuss issues dealing with a utility company. Call the Farm Bureau office at 217-824-2940 for reservations or more information. OOK — Vote in this year’s Trim the Tree contest. Entries are available at {cookcfb.org}. Deadline for voting is Dec. 17. The first place winner will receive $250, and second place will receive $100. Additional information is available on the website {cookcfb.org} or call 708-354-3276. • Spend Friday nights at Chicago Steel hockey games. Members will receive a complimentary gift with the purchase of a $5 ticket. Visit the website for game dates and details. • Members may purchase reduced-price tickets to the Chicago Wolves vs. the
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Abbotsford Heat game at the Allstate Arena, Rosemont. Contact Art Antram at 847724-1652 for tickets. EE — Members have received ballots for election of the Lee County Farm Bureau Board of Directors. A proxy may be for members unable to attend the annual meeting on Jan. 10. Deadline to return ballots and proxies to the Farm Bureau office is Dec. 14. ADISON — Farm Bureau will sponsor a marketing meeting at 7 p.m. Tuesday, Dec. 11, at the Farm Bureau auditorium. Guest speakers will be Robert Bellm, Extension educator, and Dave Marshall, market analyst and commodity broker. Call the Farm Bureau office at 618656-5191 by Wednesday for reservations or more information. EORIA — The Prime Timers will meet at 10:30 a.m. Wednesday at the Flanagan House, Peoria, for a guided tour. The Flanagan House is Peoria’s oldest house and has numerous collectables from
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the 1840s era. A hot lunch at the Farm Bureau office will follow the tour. Cost is $10. Call the Farm Bureau office at 309-686-7070 for reservations or more information. • Orders for Florida oranges, grapefruit, tangelos, and Terri Lynn nuts may be picked up Wednesday, Dec. 12, at the Farm Bureau auditorium. ERMILION — Exhibitors may sign up for the annual Illini Farm Toy Show Jan. 4-6 at the Urbana Holiday Inn. The event is sponsored by the Champaign, Douglas, Edgar, and Vermilion County Farm Bureau Young Leaders Committees. A special event at 10:30 a.m. on Saturday will be a farm toy consignment live auction. Call Kurt Wolken at 217-202-2730 or email him at kwolken85@gmail.com for exhibitor or auction information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 14 Monday, December 3, 2012
profitability
Illinois farmers’ prices affected by out-of-state corn imports BY SHALENE REEVES
With the U.S. corn harvest over and ending stocks projected to be extremely tight due to the drought affecting much of the Midwest this past summer, why aren’t we seeing corn prices rise in Shalene Reeves Illinois, a state with more than a dozen ethanol plants? What started out as an ideal spring quickly turned tragic for many in the central and southern portions of the state and that has caused an unprecedented change in traditional grain movement this fall. Many areas in Illinois were hit hard with aflatoxin, an unfortunate byproduct of the drought. Aflatoxin poses a serious headache for ethanol processors as it becomes more concentrated in their co-products. Historically, most ethanol plants have had an aflatoxin tolerance level of 20 parts per billion on corn coming into their facilities. However, the magnitude of aflatoxin in the central and southern parts of Illinois has forced some locations to lower their acceptance level. As harvest progressed, many Illinois processors became inundated with afla-
estimate that roughly 80 to 100 barges of corn (a barge holds about 52,500 bushels of corn) were shipped to Illinois, offloaded, and moved into the processor market. Illinois also has seen corn move into the state from the Northwest. Places such as North Dakota, whose corn would traditionally move into the Pacific Northwest export market, are sending corn south instead. Illinois ethanol plants have
taken advantage of the record crop this year from that region, coupled with weakness in its traditional market and the fact it does not have quality issues from aflatoxin. This has allowed ethanol plants to rail corn into their plants as well as bring trains into outlying locations to offload and truck into their facilities. As we move forward this year, ethanol plants in Illinois are expected to continue to
Shalene Reeves is MID-CO COMMODITIES’ commodity risk consultant. Her email address is sreeves@mid-co.com.
BY DANIEL GRANT FarmWeek
feed prices to spiral. “Those (pork producers) who did not panic (and lock in high feed prices, low hog prices, or sell out) are facing much smaller losses than was feared at the height of the crisis,” said Chris Hurt, Purdue University Extension economist. Futures prices recently were about $1 per bushel lower for corn and $125 per ton lower for soy meal compared to the earlier peak prices. Hog production costs decrease by about $12 per head for every $1 decrease in corn futures prices and $100 decrease in soy meal prices, according to Hurt. The changes in feed and hog prices since September reduced anticipated losses in the hog industry by about $30 per head, he said. “It’s a little better outlook (for hog producers than it was last summer),” Gary Asay, a hog producer from Henry County and a member of the National Pork Producers Council Board of Directors, told FarmWeek at the recent Illinois Commodity Conference. “There’s been some cutback of the sow herd,” he continued. “But (crop) yields were a little better than expected (which could ease feed prices), and hog futures
prices are looking up.” Dereke Dunkirk, a pork producer from Christian County and president of the Illinois Pork Producers Association, noted Illinois’ swine herd as of September increased 1 percent this year compared to last year. “We’ve not seen the liquidation numbers that were predicted,” he said. “Now that harvest is behind us and prices have gone through the spike, we (livestock producers) maybe see light at the end of the tunnel.” Jeff Beasley, a cattle producer from Creal Springs and president of the Illinois Beef Association, also is more optimistic heading into 2013. “We’re, no doubt, still look-
ing at high feed prices,” he said. “But the corn crop was not quite as bad as we thought and beans were better, so (the feed outlook) is not as bad as we thought it would be.” Late-season rains also regenerated pasture growth and extended the grazing season. Meanwhile, Beasley looks for strong to higher cattle prices next year because herd numbers have been thinned. “In general, the marketing outlook looks pretty good,” he said. “So many cattle went to town early; it’s going to have an impact.” The inventory of cattle and calves on feed in the U.S. last month declined 5 percent from the previous year, USDA reported.
Economic outlook encouraging for livestock producers Livestock producers who weathered this drought-stricken year could see better times ahead.
‘Those who did not panic are facing much smaller losses than was feared.’ — Chris Hurt Purdue University economist
In fact, livestock economics already have improved since late summer when crop prices peaked at $8.49 per bushel for December corn futures and $540 per ton for soybean meal futures, causing
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.
Range Per Head $32.25-57.71 n/a
Weighted Ave. Price $44.05 n/a
This Week Last Week 85,296 88,134 *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 $80.45 $72.74 $59.53 $53.83
Change 7.71 5.71
USDA five-state area slaughter cattle price Steers Heifers
struggle to source good-quality corn. With end-of-year stocks expected to drop to just 5.8 percent of annual demand, local prices for “quality” corn eventually should increase. However, as long as the export market remains slow, corn will continue to move into the state from non-traditional areas.
toxin corn, forcing them to dramatically expand their buying territory. While Illinois’ corn yield was the lowest it’s been in almost 25 years, several fringe states had significantly larger crops. A surplus of corn in the Delta during harvest, for example, had markets there trading at large discounts. This allowed barges of “quality” corn to be brought up the Mississippi River early this fall into Illinois. Traders
(Thursday’s price) (Thursday’s price) Prev. week Change This week 128.11 127.33 0.78 127.00 127.59 -0.59
USDA
Farm Service Agency
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week 146.24 143.03 3.21
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 130-145 lbs. for 90.50-95.50 $/cwt. (wtd. ave. 93.22)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 11-22-12 45.5 7.8 15.9 11-15-12 66.8 11.4 14.4 Last year 41.8 16.5 36.1 Season total 547.2 446.5 198.6 Previous season total 397.1 519.0 362.1 USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
CONSERVATION LOANS — Funding is available for guaranteed conservation loans to help farmers implement conservation practices on their land to protect natural resources, according to Scherrie Giamanco, state executive director for the Illinois Farm Service Agency (FSA). The loans help farmers implement any Natural Resources Conservation Service (NRCS)approved conservation practice, including waste management systems, conservation structures, or water conservation measures, Giamanco said. Unlike other FSA guaranteed loan programs, conservation loans are not limited to familysized farms. Individuals who normally may not qualify for an FSA guaranteed farm operating
or ownership loan may be eligible for a conservation loan. The loan limit is $1.302 million; interest rates and terms will vary. The maximum guarantee FSA can issue is 75 percent. A streamlined application process is available for applicants with a strong financial position. Interested applicants who do not have an NRCS-approved conservation plan should work with local NRCS staff to develop one. Lenders may reduce risk, increase liquidity, and offer lower rates by selling the guaranteed portion in the secondary market. For information, contact a lender or the local FSA staff.
Page 15 Monday, December 3, 2012
PROFITABILITY Corn Strategy
CASH STRATEGIST
Corn ethanol demand weak Unlike prior years, this year the pace of corn grinding to produce ethanol has gotten off to a slow start. Part of the issue has come from a general decline in gasoline demand. The persistence of poor profitability in the corn ethanol production sector has had an impact, too. In September, gasoline demand in the U.S. dropped 1.9 percent from last year. That was the weakest it had been this calendar year and the lowest September demand since 2008, a month in which hurricanes curbed demand. High prices may be a part of the mix, with the national average gasoline price hitting a record for September. Recent data indicated gasoline prices were at their highest level ever
during Thanksgiving, too. From a corn consumption perspective, the persistence of poor profitability in corn ethanol production may be the most troublesome. October was the 10th consecutive month in which plants lost money processing corn. And it was worse than in the summer when corn prices were higher. Corn prices have since flattened out, but so have ethanol and gasoline prices. Unless crude oil and gasoline prices strengthen into winter, neither will ethanol, sustaining poor profitability. At the same time, rising imports have become a drag on prices and domestically produced product. We are grinding at a pace consistent with the USDA projection, but one that may have only limited hope of improvement. If our economy continues to struggle, and imports continue to rise, the pace could slip, especially if the return over variable costs erodes further.
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309-557-2274
Cents per bu.
ü2012 crop: March corn futures reached important resistance last week and was resoundingly rejected. You should have used strength to make catch-up sales. If not, use a rebound to $7.60 on that contract. ü2013 crop: December 2013 not only reached our $6.25 target for making catchup sales, but also moved to stronger resistance above $6.40. Use a rebound to that level to make catch-up sales. We could add another increment at any time; check the Hotline frequently. vFundamentals: Talk of potentially better export business the latter part of the marketing year, along with the surge in wheat prices, lifted corn prices to critical price levels. Meanwhile, short-term demand features, especially for exports and processing, remain soft. Transportation demand to ship soybeans may continue to encroach on the ability to move corn to export facilities, helping keep our corn priced at a premium to the rest of the world, adding to export woes.
Soybean Strategy
ü2012 crop: The positive short/intermediate term demand picture should continue to limit downside risk for soybean prices. Continue to target a rally to $14.80 on January 2013 futures to make catchup sales. We could add a sale at that level; check the Hotline if prices get close to that level. ü2013 crop: Use prices above $13 on November 2013 futures for catch-up sales. We are considering adding another increment on strength, but want to be patient while the picture continues to develop. Check the Hotline occasionally for an update. vFundamentals: Demand for soybeans is giving the complex the strongest short-term fundamentals of the major crops. At a minimum, that should remain a positive force in the cash market, if not the futures. Mississippi River issues are about to escalate, enough to possibly impinge on the pace of export shipments.
Scattered weather issues persist in South America, but not enough to downgrade production potential yet.
Wheat Strategy
ü2012 crop: The midNovember low still looks like it was a short-term bottom. The trend has turned up again, but it could shift into a choppy sideways pattern with prices having reached key levels. Use a rally to $8.90 on March futures for catch-up sales. ü2013 crop: Make catchup sales when Chicago July futures trade above $8.67. Check the Hotline frequently;
we could add a sale at any time. vFundamentals: The recent strength in wheat prices has come from continued concern about conditions in the Southern Plains. The most recent condition report indicated only 33 percent of the winter wheat crop, mainly hard red winter, was rated good/excellent, the lowest rating it has ever had prior to dormancy. Current weather forecasts call for only limited precipitation in the western Great Plains the next seven to 10 days. The trade remains hopeful demand will pick up, but wheat from other countries is still priced at a discount.
FarmWeek Page 16 Monday, December 3, 2012
perspectives
Looking over the
E
conomics is not an experimental science. We can’t say to Congress, “Honorable ladies and gentlemen, please drastically raise taxes and cut spending all at once so we can measure the effects on the economy of changes in the federal government’s budget.” This is not what elected officials do. Except that’s just what is scheduled to happen come Jan. 1, 2013. What a great experiment! Think how much we’ll learn. LARRY Unfortunately, we’d all have to DEBOER live inside this experiment. We would be the mice in the maze. It’s the famous fiscal cliff, of course. Come Jan. 1, the Bush-era tax cuts expire, so everyone’s tax rates will increase. The two-year cut in the Social Security payroll tax will expire, raising taxes some more. The Alternative Minimum Tax won’t be adjusted for inflation, so millions of people will see their taxes rise still more. Automatic spending cuts will kick in, reducing both defense and entitlement spending. Extended unemployment insurance will expire; so two million people will lose benefits. And Medicare payment rates to doctors will be cut. You can get the amazing details from the Congressional Budget Office (CBO) in its annual budget and economic projection, at {cbo.gov/publication/43539}. Add it up; these changes will yank about $500 billion out of the economy. Higher taxes and lower entitlement payments will cut spending by households and businesses. Government will spend less, laying off employees and canceling contracts with businesses. With spending down, businesses will have less reason to produce goods and services, so they’ll cut production and reduce employment. The spending loss amounts to about 3 percent of the economy. Since output has been growing at less than 3 percent per year, the loss of that spending will turn growth negative. That’s a recession. The CBO projects a half-point decline in gross domestic product (GDP) by the end of 2013, with the unemployment rate climbing back above 9 percent. But wait! With higher taxes and lower spending, the federal budget deficit will decrease, and we’ll add less to the national debt. That’s a good thing, right?
fiscal cliff Yes it is. The CBO projects that the higher tax rates and lower spending will begin to reduce the national debt as a share of GDP. By 2020, the debt will be down to 61 percent of GDP and falling. Now, it’s 73 percent and rising. When taxes are less than spending, the federal government borrows the difference. Eventually, with too much borrowing, lenders will only lend at higher interest rates. Higher rates reduce borrowing by businesses. Investment projects that would have added new equipment and better technology don’t get done. Economic growth slows down. The Federal Reserve may try to hold interest rates down by increasing the money supply, but that leads to inflation. It’s a nasty choice: recession and unemployment now, or high interest rates, inflation, and slower growth later. There may be a way to avoid this nastiness. Deficits are not causing problems now. We’ve been running huge deficits since 2008, yet lenders still are falling all over themselves to lend to the federal government. Interest rates are at record lows. Inflation is low, too, despite trillions in new money created by the Fed. The problems we expect to see from all that borrowing are nowhere to be found. That’s because an economy trying to emerge from recession is different from one that’s fully recovered. We’ve got unused capacity — workers without jobs, buildings without tenants, factories closed or producing less than they could. That keeps wages, rents, and prices from rising, so we don’t get inflation. Banks have money to lend but don’t see enough low-risk borrowers. Money not lent is money unspent, so it doesn’t add to economic growth. Federal government borrowing and spending in an economy like this gives businesses a reason to produce and hire. It doesn’t crowd out private investment. Deficits now are OK. They help our economy. Congress needs to agree to keep taxes down and maintain spending in 2013. Once the economy has recovered, we’ll need to bring down those deficits to prevent high interest rates and inflation. Congress needs to agree on a plan to get that done. Forget the experiment. We aren’t mice in a maze. We aren’t lemmings on a cliff, either. Larry DeBoer is a professor of agricultural economics at Purdue University, West Lafayette, Ind. His email address is ldeboer@purdue.edu.
A post-election look at the fiscal cliff, Europe As we head ever nearer to the so-called fiscal cliff, will those in Congress who have avoided dealing with this issue for the last 12 months find the spine to act? The fiscal cliff refers to the automatic spending cuts and tax increases that Congress and the president imposed on themselves in order to agree on increasing the borrowing limits of the U.S. Treasury. No one in government actually believed it would ever really occur because Congress would agree to some sort of compromise before it was triggered. Unfortunately, neither political party has even addressed the issue, let alone resolved it. Therefore, if nothing is done before the end of 2012, budget cuts and tax increases will occur automatically. Many pundits think that going over the fiscal cliff will be the end of the world as we know it. It would lead to much lower economic BRUCE growth and FINKS quite possible another recession. While it certainly would be uncomfortable initially, it also could start some serious conversations between the two political parties about solving our long-term budget deficit. Everyone knows something must be done; the math just doesn’t support the current path we’re on. But who will be the first to admit that taxes must rise and spending must fall? Wall Street loves to prognosticate, and an election gives it ample opportunity to do so. Romney said he would replace Ben Bernanke, chairman of the Federal Reserve. This led some to speculate that the era of Quantitative Easing would end, which would be bad for stocks and bonds. Wall Street firms had backed Obama in 2008, but were backing Romney in this election in an attempt to halt some of the re-regulation that has occurred since the Great Recession of 2008. Now these Wall Street firms fear even harsher regulations could be headed their way in retaliation for their support of the challenger.. Obama had come to an agreement with the health care industry to get his health care initiative passed in 2010. Romney said he wanted to undo
this legislation. Therefore, pundits assumed that an Obama victory would be good for health care stocks. Also, an Obama re-election seemed to assure that the easymoney policies of the Fed under Bernanke would continue ad infinitum. On Nov. 7 with the markets knowing the election winner, the Dow Jones was down 312 points. Some said it was caused by the election results. Others, including us, believe there is finally some news coming out of Europe on its economic and debt problems, and the news is not good. The German economy, which has been the lynchpin of Europe, is slowing more than previously thought. Also, the debt problems of Greece and the other profligate spenders, which politicians there had hoped would be solved through economic growth and not austerity, are still not resolved. What’s truly surprising is that this is the same situation that has existed for more than two years and was supposed to be addressed when the Europeans came back from their summer vacations in August. We’ve been waiting since Labor Day for something to happen to resolve the situation. Instead, we’ve seen some of the calmest financial markets of the past five years, almost as if there was nothing wrong, just no news upon which to react. Not only has the proverbial can not been kicked down the road, absolutely nothing has been done. The markets are still waiting for Spain to ask for help for its insolvent banks and for Greece to finally meet one of its deficit goals given it by the European Central Bank. We don’t think much is going to change as a result of the election outcome. The Fed will stay accommodative, interest rates will remain low, stocks will tread water, regulation will expand, income generation will be difficult to achieve, and investors will remain starved for yield. Investors already have moved into far riskier investments than they have ever owned before in an attempt to maintain yields and returns. We can only hope the search for yield in these unfamiliar surroundings has not led them into a minefield.
Bruce Finks is vice president of investments for Country Financial.