FarmWeek December 5 2011

legIslAtIOn that would provide some regulatory relief for small and rural cemeteries passed in the Illinois House last week. ..........3

the stAte’s RuRAl and small school districts face challenges not shared by their larger counterparts, according to a survey. ............3

ImpROveD nItROgen efficiency is one goal of the Keep it for the Crop by 2025 (KIC) program. .................................................5

Monday, December 5, 2011

Two sections Volume 39, No. 48

Lawmakers OK funding deal, avoid closures, more layoffs IDOA rehiring 21 employees

BY KAY SHIPMAN FarmWeek

Legislative leaders and Gov. Pat Quinn agreed on a budget deal last week, avoiding the possible layoff of about 2,000 state employees, and triggering the rehiring of others. The plan involves

moving money from different areas in the budget.

As part of the agreement, the Illinois Department of Agriculture (IDOA) will receive an additional $1.7 million, the shortfall amount that had resulted in IDOA employee layoffs. On Nov. 1, 21 IDOA employees in various divisions were laid off.

“We’re in the process of

rehiring the laid-off employees. We’re in the early stages,” Stacey Solano, IDOA spokesman, told FarmWeek.

Last month, Quinn announced plans to close seven state facilities, including a couple of mental health centers. He urged legislators to approve the reallocation of $316 million, saying the budg-

et wasn’t large enough to fund state government.

Last week’s deal means the facilities will remain open through June 30, the end of the current fiscal year, according to state officials.

“After working closely with the General Assembly this veto session, we have reached a bipartisan budget agreement that achieves the goal of keep-

ing the seven state facilities slated for closure open throughout this fiscal year using existing state resources,” Quinn said.

“Reallocation will allow us to move toward the administration’s long-term goal of more thoughtful, properly supported and successful community care transitions,” the governor added.

Failed super committee process highlighted ‘realities’

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

While a $23 billion “super committee” ag budget cut has been shelved, farmers still will be expected to cough up their healthy share of the “down payment” on the federal deficit, according to a former USDA official.

The difference now is that producers and policymakers have breathing room in which to develop a farm bill-based payment installment plan that provides a solid farm safety net, said American Farm Bureau Federation (AFBF) deputy executive director for public policy Dale Moore. Moore is a former House Ag Committee staffer and USDA chief of staff.

House and Senate ag committees plan to begin 2012 farm bill hearings in January or February. Illinois Farm Bureau delegates are weighing policy options at this week’s annual meeting in Chicago, and farmers from across the U.S. will debate various state proposals at AFBF’s January meeting.

A likely focus for AFBF delegates will be the merits of so-called “shallow loss” revenue programs similar to the existing Average Crop Revenue Election (ACRE) program vs. “systemic risk reduction,” an AFBF-proposed approach aimed instead at covering more severe losses.

The super committee, a 12member, bipartisan panel charged with identifying at least $1.2 trillion in deficit reductions over the next decade, threw in the towel prior to Thanksgiving.

House and Senate ag committees offered the panel a 10year, $23-billion ag spending cut plan that included elimination of direct payments, restructuring of farm revenue protections, and reduced conservation spending.

Aside from key changes in the farm bill commodity title, the super committee blueprint structurally was “pretty much the current farm bill,” argued Moore. At the same time, IFB National Legislative Director Adam Nielsen suggested the call for deficit reduction is “only going to increase” in 2012.

“No. 1, we’re not going to

go all the way back to square one, start back at zero,” Moore told FarmWeek. “But there are some realities we have to face when we look at Title 1 (commodity programs) and Title II (conservation) in particular.

“The ag committees made it clear they are willing to lay direct payments, ACRE, (Supplemental Revenue standing disaster assistance), etc., on the table, saying, ‘Here’s our payment in full relative to Title I, minus what we think we need for whatever policy we fit in around the edges.’”

Funding is a major wild card: Super committee failure leaves the door open to required budget “sequestration” cuts from which conservation and nutrition assistance reportedly could be excluded.

Those programs accounted for roughly $8 billion in proposed super committee savings.

Policymakers last week were unsure whether ag committees would be expected to deliver the entire $23 billion super committee savings package, possibly placing a greater burden on farm programs, or cuts

closer to $15 billion.

Senate Ag Committee Chairman Debbie Stabenow (DMich.) last week previewed a potential farm bill draft that emphasizes crop insurance, scraps direct payments, restructures revenue protections and target prices, and consolidates conservation programs.

Given budget pressure, rising “food stamp” demand and nutrition program popularity, and ag’s current relative prosperity, that $15 billion floor is See Realities, page 4

CUTTING DEMONSTRATION

Bob Oliver of Bob Oliver and Associates of Milan, Mich., demonstrates his company’s oxygen-acetylene welding and cutting tool at last week’s Greater Peoria Farm Show. Watching is Justin Swenson, center wearing black hat; his brother, Caleb, second from right; and his father, Claire, right. Swenson and his sons grow corn, beans, and alfalfa, and raise hogs near Newark in Kendall County. (Photo by Ken Kashian)

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, December 5, 2011

Quick Takes VEETC OLD NEWS? — Critics of ethanol should stop complaining about the Volumetric Ethanol Excise Tax Credit (VEETC) because the ethanol industry has agreed to give it up on behalf of reducing the U.S. budget deficit, according to Illinois producer Garry Niemeyer, president of the National Corn Growers Association (NCGA).

The 45-cent-per-gallon fuel blenders credit expires Dec. 31, and Congress is unlikely to extend it.

“Let the record show that NCGA and our allies in the ethanol industry have left the playing field on this issue long ago and moved on,” Niemeyer said. “It’s time to work together on smart energy policies that promote our domestic economy and energy security.”

In that regard, the battle is far from over. Sen. John Sullivan (R-Okla.) last week was courting colleague support for omnibus spending language that would attempt to block sale of 15 percent ethanol blends. The U.S. Environmental Protection Agency has approved “E15” use in 2001 and later model vehicles, but several oil state lawmakers have continued to oppose its adoption.

NEW DEER POACHING CHARGES LEVIED — The number of deer poaching charges continues to increase in Illinois. Recently, the Illinois Department of Natural Resources (DNR) filed charges against two men for the illegal killing of a 13-point buck in Kankakee County.

Weldon “Jesse” Bean, 29, Kankakee, and Raymond Drazen, 40, St. Anne, were charged with several wildlife violations related to the deer, estimated to be worth thousands of dollars.

“This case is another example to would-be poachers that the conservation police are out and looking for those who choose to violate the law,” said DNR Director Marc Miller.

The DNR Target Illinois Poacher Hotline is 877-2367529.

HARTKE, JENNINGS HONORED — Chuck Hartke and Tom Jennings, two former directors of the Illinois Department of Agriculture (IDOA), received the Friend of Agriculture Award last month at the Illinois Commodity Conference.

The award is the highest honor handed out each year by the state’s commodity groups. It is given to individuals who have made significant contributions to improving ag in Illinois.

Hartke worked more than 30 years in local and state politics before he served as IDOA director from 2003 to 2008.

Jennings worked for IDOA in various capacities for more than 30 years before he was named director in 2008.

He retired from that position in October.

The Friend of Agriculture Award recipient is nominated and selected each year by representatives of the Illinois Beef, Corn Growers, Milk Producers, Pork Producers, Soybean, and Wheat associations.

(ISSN0197-6680) Vol. 39 No. 48 December 5, 2011 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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RURAL ISSUES

New ICGA president focuses on farm bill, farmer image Newly elected leaders of the Illinois Corn Growers Association (ICGA) will focus on new twists to some long-standing issues in the coming year.

Jeff Scates, a farmer from Shawneetown and new ICGA president, told FarmWeek his top priorities this year include farm bill negotiations, improving the image of farmers, and moving forward with improvements to locks and dams on the Illinois and Mississippi Rivers.

“We’ll definitely be working on the farm bill again (in 2012),” said Scates, who farms with 12 people, including his father and four brothers, in the family operation. “We’re looking for a revenue-based safety net to complement crop insurance.”

A safety net is vital for farmers as they attempt to increase production to satisfy a growing consumer base, according to the ICGA president.

Scates believes corn farmers will be able to boost yields to meet demand despite produc-

tion challenges the past two years.

The national average corn yield increased every year Jeff Scates from 2005 (147.9 bushels per acre) through 2009 (165.2 bushels) by an average of 3.36 bushels per acre. But the average corn yield tapered off to 152.8 bushels per acre last year and a projected 146.7 bushels this year due to weather challenges, including floods and drought.

“I have a feeling the volume of corn produced will continue to grow,” Scates said. “With all the technology that’s here and coming, I see corn yields continuing to go up.”

And with the possibility of more corn and other farm commodities to ship in the future, Scates said infrastructure improvements, particularly to locks and dams, are vital for the U.S. to maintain a competitive advantage.

“That (updating locks and

dams) has always been toward the top of producer concerns,” Scates said. “No doubt, something has to be done.”

Meanwhile, a changing consumer-base that increasingly is becoming more detached from farming and less informed about food production will require farmers to interact more with consumers and explain farming practices.

“I’d like to make more urban audiences aware of what we (farmers) do and make sure we have a positive image,” said Scates, who also is concerned about the possibility of “over-regulation” in ag.

Others elected to leadership positions at ICGA include Vice President Paul Taylor, Esmond; Treasurer Richard Gates, Carmi; and Secretary Aron Carlson, Winnebago.

The ICGA board coordinates and conducts market development, legislative, and public relations programs to benefit corn producers. It is made up of 15 directors who represent specific districts and three at-large directors.

Hunters in Illinois shot fewer deer during the opening of firearm season compared to last year, based on preliminary numbers from the Illinois Department of Natural Resources (DNR).

In the first weekend, a preliminary total of 66,501 deer were shot compared to 68,037 deer during the 2010 deer season. The 2011 firearm season ended Sunday.

Paul Shelton, DNR forest wildlife program manager, speculated the weather may have contributed to the small decrease: “Although windy weather on opening day presented a little bit of

a challenge to hunters, this was fairly typical fall weather. ”Corn harvest was pretty much complete throughout the state except for some parts of Northern Illinois,” he continued. “We seem to be right on target as far as projected harvest.”

Pike County led the state with 1,917 deer taken followed by Adams, 1,784; Fulton, 1,775; Jo Daviess, 1,664; and Jefferson 1,496 counties.

Hunters shot 98,944 deer over the seven-day firearm deer season in 2010.

Bucks comprised about 61 percent of the deer taken during this year’s first week-

end of firearm hunting. That was slightly higher than the 2010 first-season ratio of 60 percent bucks to 40 percent does.

DNR conservation police were busy while conducting compliance checks around Illinois. During the 2011 first weekend of firearm deer season, conservation police issued 547 citations for wildlife code violations and 630 written warnings.

To date, DNR has issued more than 330,000 firearm deer hunting permits for the 2011 season.

The 2011-2012 archery deer season continues through Jan. 15.

BY DANIEL GRANT FarmWeek

First part of firearm season sees lower deer hunting numbers

Meetings set to review power corridor

Seven meetings are scheduled this week on proposed power-line routes through several Northern and Central Illinois counties. The Rock Island Clean Line is a 500-mile overhead direct-current transmission line that will transport energy from northwest Iowa to Illinois and other states to the east.

The counties involved include: Rock Island, Henry, Lee, Bureau, LaSalle, Kendall, Whiteside, and Grundy. Detailed information about alternative routes, including maps, will be available at the meetings.

Meeting dates, times, and locations are: Monday (today), 5 to 7 p.m., Cordova Civic

Center, Cordova; Tuesday, 7 to 9 a.m., Geneseo Community Center gym, Geneseo, and 5 to 7 p.m., Prophetstown Recreation Center, Prophetstown; Wednesday, 11 a.m. to 1 p.m., Bureau County Metro Center’s Shoemake Hall, Princeton, and 5 to 7 p.m., Mendota Civic Center, Mendota; and Thursday, 7 to 9 a.m. Mendota Civic Center, Mendota, and noon to 2 p.m., Jennifer’s Garden and Banquet and Convention Center, Morris.

For additional information, go online to {www.rockislandcleanline.com} or call 888-6922144.

Page 3 Monday, December 5, 2011 FarmWeek

STATE

Tax proposals didn’t fly; another attempt coming?

BY KAY SHIPMAN FarmWeek

State lawmakers did not agree on a tax proposal last week during the special veto session, but they may be back to try again soon.

The main reason legislators returned to last week’s veto session was to take action on a tax proposal targeting the tax burden on the CME Group Inc., parent company of the Chicago Mercantile Exchange and the Chicago Board of Trade, and Sears Holding Corp. Both corporations have threatened to leave the state unless they received some form of tax relief.

A part of the tax packages was increasing the individual estate tax exemption from its current $2 million to $3 million in 2012 and to $3.5 million in 2013. The proposals also extended the life of the state sales tax

incentives on ethanol and biodiesel to 2018.

Illinois Farm Bureau was pleased to see the proposals no longer decoupled the state from the 2011 federal bonus depreciation schedule, which had been the main reason for IFB’s earlier opposition, according to Kevin Semlow, IFB director of state legislation. In the end, IFB supported both SB 397 and HB 1883.

“Tax proposals, such as this, are complicated and politically charged,” Semlow said. “The smallest piece not in the right place can cause an agreement to come tumbling down. There is a

House OKs cemetery rule changes; Senate action needed The Illinois House last week passed legislation that would provide some regulatory relief for small and rural cemeteries.

However, the Senate must concur with the bill before it can be forwarded to the governor.

A controversial state law set up new licensing and insurance requirements and fees for small cemeteries. The legislation that passed in the House was sponsored by Rep. Barbara Flynn Currie (D-Chicago) and supported by Illinois Farm Bureau.

It would reduce some of the regulatory burden on some cemeteries.

During floor debate, Curry said regulatory changes are needed because smaller cemeteries, especially those downstate, were “going to find it financially impossible for them to continue their work.”

Curry warned fellow lawmakers if cemetery officials “walked away” from their cemeteries, the responsibilities for those cemeteries would fall to townships and/or the state.

Rep. Don Moffitt (R-Gilson) questioned Curry about the impact of proposed changes: “Initially (the legislation) it was a one-size-fits-all,” he said, adding he hoped that was not the case under her proposal.

“This legislation reduces the regulatory burden placed on smaller cemeteries under the Cemetery Oversight Act,” said Bill Bodine, IFB associate director of state legislation.

Vickie Hand, legislative chairman of the Illinois Cemetery and Funeral Home Association (ICFHA), characterized the legislation as bringing “financial relief for small cemeteries performing less than 25 internments a year. There will be no need for licensing.

Instead, they have to file for a partial exemption.”

The legislation includes a full exemption from the law for cemeteries that are family or religious burial grounds; have not had an internment, inurnment, or entombment in 10 years; or are less than three acres in size.

The law would continue to require cemeteries with limited exemptions to comply with rules for reasonable maintenance, record keeping, and other actions.

In other action, a proposal for the Tenaska energy plant in Christian County resurfaced last week. On a 30-28 vote, the Senate passed SB 678 that would authorize construction of the plant. It also would require higher electric rates be charged to both residential and business customers to subsidize the plant’s construction and operation.

IFB has opposed the legislation as it would directly increase farmers’ costs through higher electric rates and indirectly increase their other expenses because farm suppliers and agribusinesses would pass along their higher energy costs.

SB 678 has not been called for a vote in the House and still needs to be considered in that chamber.

The General Assembly passed legislation that would increase enrollment at the Chicago High School for Agricultural Sciences (CHSAS). SB 1226, sponsored by Sen. Ed Maloney (D-Chicago), would increase the school’s enrollment from 600 to 720 students.

CHSAS focuses on core curriculum as well as agribusiness and ag sciences. — Kay Shipman

lot of anger and frustration in the General Assembly, and last week’s vote in the House showed it,” Semlow said.

In the House, only eight members voted in support of the Senate’s version of the tax proposal.

“It is hard to speculate about the specific reasons for a vote like that one, but it is clear that one portion of HB 1883 is focused on increasing the earned income tax credit from 5 percent to 10 percent over two years,” Semlow continued.

“Once it was clear during the House vote there was not sufficient support to pass the package, House members started voting no.”

Legislative leaders

indicated they have not given up hopes of reaching an agreement.

The chairman of the House Revenue Committee, Rep. John Bradley (D-Marion), stated his committee would continue to work on a proposal that could receive enough votes for passage, according to Semlow.

“It is clear that this issue is not finished,” Semlow said. “Members of the House and Senate are trying to create a delicate balance in the new package that could be voted upon in the coming weeks. At this point, the assumption is that the General Assembly could return in the next few weeks to take action on the next proposals,” he said.

IFB is working with other proponents to see that the estate tax changes and renewable fuels components of the bill remain intact.

State’s rural, small districts give voice to their challenges The state’s rural and small school districts face unique challenges not shared by their larger counterparts, according to new research by three superintendents.

“We think rural schools need to have a voice. One size doesn’t fit all,” said Tami Roskamp, superintendent of Beecher School District.

Roskamp and her fellow superintendents and Western Illinois University alums, Superintendent Mary Parker of Delavan and Superintendent Gary Depatis of Greenview, surveyed 720 small and rural districts this year. They were assisted by the Association of Illinois Rural and Small Schools.

Aside from funding, the top concerns facing rural and small districts are offering students quality curriculum and sustaining quality staff, according to the survey.

Of the districts that responded, the average enrollment was 666 students and a majority (61 percent) were unit districts.

Roskamp, Parker, and Depatis said they conducted the survey to determine if their concerns were shared by similar districts. The survey responses confirmed their original assumption and lent credence to their priority issues.

“As a rural superintendent, sometimes you feel like you’re on an island,” said Depatis.

The surveyed superintendents are seeking information to learn if “other people are saying the same things and how can these (issues) be combated for the betterment of our students.”

“We hope the survey provides information about rural schools and the crises they face — not just financial ones,” Parker noted.

Not only do Illinois small, rural districts share similar concerns, but they also share those issues with small and rural districts in Indiana, the educator trio learned after presenting its survey results at a national education conference.

Technology, especially computers and the Internet, surfaced as both a tool to expand learning opportunities and as a challenge for resources and infrastructure.

“How can rural schools keep up with that (technology)?” Parker asked.

On the flip side, technology is a tool that would alleviate some particularly rural challenges, such as fewer classes and longer distances needed to travel for education experiences, she pointed out.

Depatis noted the majority of rural schools, such as his, have older buildings not suited for information technology, and smaller districts don’t attract telecommunication service providers.

Among survey respondents, 88 percent employs a technology technician to handle nuts-and-bolts work and 51 percent has a teacher-trainer to help teachers integrate information technology into classroom lessons.

However, some districts rely on teachers’ expertise as technology resources.

Depatis explained his “main tech” person is the business teacher and his other tech employees also teach classes.

Roughly a fourth of the districts are using the Illinois Virtual High School, which offers a variety of online classes. About 23 percent don’t offer distance learning opportunities.

The three superintendents are planning to take a follow-up survey and want to share their research information with educators, lawmakers, and others who are interested.

Last week, they were contacted by Lt. Gov. Sheila Simon’s staff about their survey results.

“We want to provide information about issues they’re (small and rural districts) facing and how does that dovetail with school consolidation” discussions, Parker said. “There needed to be a voice for rural schools.” — Kay Shipman

FarmWeek Page 4 Monday, December 5, 2011

government

Federal biodiesel tax credit awaits right vehicle

BY MARTIN ROSS FarmWeek

The biodiesel sector was in a bad place last year. Now, it’s stronger than ever and pushing to head off a repeat of 2010.

Illinois growers and the biodiesel industry currently face dual-edged concerns: Potential expiration of the $1per-gallon federal biodiesel tax credit on Dec. 31 and questions about continuation of Illinois’ biofuels tax credit.

Illinois Soybean Association Past Chairman Ron Moore maintained the Illinois credit “has really created other business in the state” by providing lower-cost renewable fuels, while the nationwide fuel blenders credit has sustained overall demand and biodiesel development.

Illinois Farm Bureau National Legislative Director Adam Nielsen notes “a lot’s going to happens at the end of the year,” in terms of continuing budget measures and tax “extenders.” IFB and other groups will “push hard to make sure the biodiesel credit is in that mix,” Nielsen

Brinkmann cited for biodiesel work Carlyle producer Darryl Brinkmann, former chairman of the National Biodiesel Board (NBB), was honored in late November for “his many years of leadership and service to the biodiesel industry.”

Brinkmann received the award during NBB’s annual membership meeting in Washington.

NBB cited the Illinois Farm Bureau state director for his “devoted service, time, and exceptional leadership to the National Biodiesel Board and Darryl Brinkmann National Biodiesel Foundation.”

“Darryl’s leadership and extensive work on behalf of the biodiesel industry has played a major role in helping us get to where we are today: a vibrant industry producing America’s first advanced biofuel,” NBB Chairman Gary Haer said.

Brinkmann chaired NBB from 2005 through 2007 and served on the NBB Board from 1999 through 2011. He has been president of the National Biodiesel Foundation since 2006.

Brinkmann, who grows soybeans, wheat, and corn on his 1,800-acre family farm, earned a bachelor of science in ag economics from the University of Illinois.

said.

According to National Biodiesel Board spokesman Ben Evans, hopes for action on the federal credit this month may be “optimistic” — “There are only a few weeks left, and Congress doesn’t appear to be making a whole lot of progress on anything.”

However, Evans sees “solid bipartisan and geographically diverse support” for biodiesel,

and he believes lawmakers will extend the credit by early 2012, once they find the ideal legislative vehicle.

Moore noted biodiesel demand dropped “precipitously” in 2010 after Congress failed for nearly a year to renew the tax credit. Late 2010 extension was necessary to rebuild “the confidence to ramp up production again and put people back to work,” he

Bill to block dust regs clears House committee The U.S. House Energy and Commerce Committee has approved bipartisan legislation to provide what Chairman Fred Upton (RMich.) deems much-needed certainty for rural America.

The Farm Dust Regulation Prevention Act cleared the committee last week by a 33-16 vote.

The measure, co-authored by Reps. Kristi Noem (R-S.D.) and Leonard Boswell (D-Iowa) and co-sponsored by more than 115 bipartisan lawmakers, would prevent the U.S. Environmental Protection Agency (EPA) from changing its current standard for “coarse particulate matter” — i.e., dust — for one year.

The bill would exempt so-called “nuisance dust” from federal regulation where such dust already is regulated under state, tribal, or local law. “(The measure) achieves two important goals: regulatory certainty in the short term, and common sense for rural America in the

long-term,” Upton maintained.

“The bill maintains the current coarse particulate matter standard for one year — a position (EPA Administrator) Lisa Jackson has embraced with her plans to propose maintaining the standard — and it offers regulatory relief to rural America by recognizing that states and local communities are better equipped to monitor and control farm dust.

“EPA would no longer be in the business of regulating rural dust except in cases where it is not already being regulated and the benefits of EPA regulation outweigh the costs.”

The bill now moves to the House floor. The Senate has yet to act on similar measures.

While Jackson has indicated EPA plans no new dust regulation as part of its current rereview of particulate rules, existing rules will be subject to public comment before they are reaffirmed. Noem thus stressed the need to “stop any new job-destroying rules from the EPA.”

Realities Continued from page 1 “probably not going to get any lower,” Moore said.

“We’re still going to be asked to take a sizable cut in mandatory farm programs,” Nielsen said.

Ron Moore, Illinois Soybean Association (ISA) past chairman, nonetheless said he is gratified that the farm bill has been placed back into ag committee hands. The super committee process “wasn’t very transparent,” and groups including ISA now can push for policies “in the best interests of their particular commodities,” the Roseville farmer argued.

AFBF’s Moore doesn’t see the super committee effort as a total loss, noting it offered Stabenow and House Ag Committee Chairman Frank Lucas (R-Okla.) “a chance to learn how to work together.” That’s crucial amid the prospect of “more pushing and pulling and shoving”

among commodity and regional interests, he said.

“This will be the seventh farm bill I’ve worked on since I came to Washington,” Moore noted.

“No matter how fast we go or how plodding the process may seem, there will be points where the Corn Belt and the Cotton Belt and the Wheat Belt and various regions with the Wheat Belt will sit down at the table and say, ‘Based on our analysis, you guys benefit more than my guys benefit, so we need to make some adjustments.

“So there will be some shuffling. But we need a national approach that is uniform enough that we don’t have Farm Service Agency employees jumping out of windows because they have 92 variations on farm programs to keep track of.

The flip side is, it also needs to be flexible enough — to get the best bang for our buck with the resources we’ve got.”

argued.

The industry has rallied strongly, setting a new record for annual production this year. Plants nationwide have produced more than 802 million gallons, more than doubling last year’s production of about 315 million gallons and breaking a previous 690-million-gallon record in 2009.

According to a recent study conducted by Cardno-Entrix, that expanded sector should support more than 31,000 jobs — up from fewer than 13,000 in 2010 — while generating $3 billion in gross domestic product and $628 million in federal, state, and local tax rev-

enues.

“It’s always a challenge when you’re working with limited resources, like the federal government has now,” Moore acknowledged. “But I think that as we talk about (biodiesel’s) benefits to the whole economy, they outweigh any of the costs that might be borne by the taxpayer.

“When that blenders credit was withheld, we lost maybe 20,000 jobs nationwide.

(Extension) will help put people back to work and put more money into the economy. It’s something the government can do to stimulate the economy.”

‘Hazardous waste’ label hazardous to producers Crop farmers see it as organic gold, allowing reduced input costs and potential new life for farm soils. Livestock producers see it as an expanding profit center.

Neither sees eye-to-eye with regulators reportedly looking to slap a new warning label on animal wastes.

U.S. Rep. Don Manzullo, an Egan Republican, warns a U.S. Environmental Protection Agency (EPA) proposal to classify livestock manure as hazardous waste would mean costly new regulations and possibly even major lawsuits for Illinois farmers.

Manzullo is co-sponsoring the Superfund Common Sense Act, which would prevent EPA from adding manure to the list of substances under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), AKA the “Superfund law.” CERCLA was enacted by Congress in 1980 to help ensure responsible parties pay for hazardous waste cleanup sites.

EPA already has strict procedures in place to protect streams and underground wells from waste runoff for regulating waste from large ag operations, Manzullo noted.

CERCLA regulations could affect farm insurability, and farmers who field-apply manure could be held liable for runoff. That manure is a “definite value” relative to commercial fertilizers, especially as input costs have climbed, and thus it is a “hot commodity” for margin-conscious producers, Illinois Pork Producers Association spokesman Tim Maiers told FarmWeek.

“Folks without any ties to livestock who now appreciate the value of that manure as fertilizer might start thinking, ‘Do I want to go through the risk of liability of having that ‘hazardous waste’ spread on my ground?’” Maiers suggested.

“This has the potential to have a very big impact. Common sense tells you this is not hazardous waste — it’s an organic material.”

CERCLA-based limitations could hamper or even invalidate carefully wrought farm nutrient management plans, Maiers said.

Further, he sees a “hazardous waste” designation potentially fueling EPA efforts to impose extensive nutrient regulations in the Mississippi River Basin similar to those now in force in the eastern Chesapeake Bay. Maiers noted “this issue’s been around for awhile” — in 2001, the City of Tulsa, Okla., sued poultry operations for polluting the surrounding Lake Eucha watershed. In 2004, Waco, Texas, officials brought suit against 14 dairies, and in 2005, the state of Oklahoma sued Tyson over poultry waste.

Manzullo recently worked with EPA, the Illinois Environmental Protection Agency and the Illinois Department of Agriculture to clarify existing runoff regulations for Northwest Illinois farmers who reportedly were receiving conflicting information from state and federal agencies.

“It’s ridiculous to think our family farms are as dangerous as toxic waste sites, and it’s outrageous to regulate them the same way,” the congressman said.

“Classifying livestock manure as hazardous waste under CERCLA would open our family farms up to huge legal liabilities and make them less productive and competitive. This is the last thing we should be doing when we are trying to help put Americans back to work.” — Martin Ross

Page 5 Monday, December 5, 2011 FarmWeek

production

Farmers changing nitrogen applications, efficiency New stewardship director hired

BY KAY SHIPMAN FarmWeek

Farmers will gain more benefit from nitrogen next year because of effectively timed fertilizer applications, according to Jean Payne, president of the Illinois Fertilizer and Chemical Association (IFCA).

Improved nitrogen efficiency is one goal of the Keep it for the Crop by 2025 (KIC) program.

Launched last summer, KIC focuses on adopted and implementation of nutriDan Schaefer ent best management practices.

This fall “the farmers were very attentive to soil temperatures,” Payne said. IFCA members reported a majority of fall ammonia was applied in November when soil temperatures had cooled.

To advance KIC nutrient management, Dan Schaefer, a certified crop adviser, has been hired as nutrient stewardship director by the Illinois Council

on Best Management Practices (ICBMP), an ag industry coalition. ICBMP is implementing the KIC program.

Formerly with Illini FS, Schaefer was named top 2010 certified crop adviser by Illinois Farm Bureau.

“The KIC Program has many important elements that IFB has supported for years,” said Nancy Erickson, IFB director of natural and environmental resources.

“The program will help to unify educational efforts of the agricultural community and provide answers through research efforts on specific fields,” Erickson said.

“Farmers are stewards of the land, and they know that using research-based information on best management practices can help enhance farm income while reducing nutrient losses. KIC also will support involvement of farmers in watershed programs throughout the state and it will focus on the fact that not all watersheds are the same.”

Delayed fall applications may be only the tip of the iceberg toward preserving nitrogen use long-term, according to Howard Brown, GROWMARK manager of agronomy

services. GROWMARK is focusing on nitrogen management as a system, which is parallel to the KIC program, Brown said.

The goal is to maximize crop yields, optimize nitrogen use, and minimize the environmental impact by applying nitrogen incrementally over a period of time, Brown said.

Over the past three years, farmers who applied nitrogen incrementally harvested an extra 15 to 20 bushels of corn per acre, Brown said.

“My crystal ball says it (nitrogen system management) will be so popular in 2012, we’ll be working hard to meet demand,” Brown said.

Schaefer pointed out that incremental nitrogen management does not increase the total amount of nitrogen applied but uses different rates and sources of nitrogen. “Basically, it’s making sure the high-priced corn doesn’t run out of N in August

What soil temp do you use?

Soil temperature is an important factor in improving nitrogen efficiency. While some farmers were more aware of soil temperatures this fall, there also was confusion about which soil temperature they should use for application timing, according to Jean Payne, president of the Illinois Fertilizer and Chemical Association.

The University of Illinois recommends no anhydrous be applied until the 4-inch soil temperature reaches and remains below 50 degrees Fahrenheit. The Illinois State Water Survey reports a 10 a.m. temperature as well as maximum and minimum daily soil temperatures.

Farmers should base their application decisions on the maximum daily soil temperature instead of the morning temperature, Payne said.

“Lots of days in October, the soil temperature would be cool early in the morning and then the sun came out and the soil warmed up,” Payne explained. — Kay Shipman

when it’s filling the ear,” Schaefer said.

More farmers not only delayed nitrogen applications this fall, but they also reduced the rates as well, leading Payne to speculate those farmers intend to apply nitrogen in the spring.

“We recognize that delaying ammonia application creates difficult logistical, equipment, and supply challenges when the application season is shortened,” Payne said. “These changes for the supply industry will take time and that is reflected in the fact that KIC has a measured timeline to accomplish the program’s objectives.”

IFB has worked to promote KIC, such as providing county Farm Bureaus with news articles about the program and proper practices for fall nitrogen application. IFB also distributed KIC posters and soil thermometers to the county Farm Bureaus.

A workshop at the upcoming IFB Governmental Affairs Leadership Conference (GALC) will highlight anhydrous ammonia safety. Another GALC workshop will focus on best management practices for nutrient application and the KIC program.

Crop insurance re-rate offers ‘enticing’ risk options “Re-rating allows farmers to either The coming year offers a range simply save money of uncertainties for Illinois farmers. or, hopefully, take a But given recent USDA news hard look at regarding yield trend adjustments improving their and 2012 premium “re-rates,” Illicoverage -– taking nois Farm Bureau risk management these savings and specialist Doug Yoder is reasonably bumping up covercertain of one thing: “This will be a age from a yield to great year for crop insurance.” a revenue policy or Last week, USDA’s Risk Managefrom 70 to 75 perment Agency (RMA) announced it cent (revenue) covwas updating its methodology for erage to an 80 or setting premiums, leading to lower even 85 percent nationwide rates for many corn and policy,” he said. soybean growers and an anticipated “The Trend12 percent average reduction in IlliAdjusted APH nois rates. RMA plans additional Option will ratings analysis and input collection increase the and possible further reductions in amount of cover2013. age a farmer can The announcement comes on the get by boosting his heels of a new Trend-Adjusted individual yield.

Actual Production History (APH) This rate reduction Yield Option plan for corn and will lower his costs. beans starting next year in selected Combined, it states. The plan, effective for all but should make his Cook, DuPage, and Hardin counreturns better ties, allows policyholders with qualiapproach his level fying APH databases to have APH These maps illustrate the benefits re-rating of crop insur- of risk.” ance premiums will offer not only Midwest corn and soyyield adjusted based on historical Illinois Corn bean producers but also southern growers who in the past county yield trends.

Growers Associahave given crop insurance mixed to poor reviews as a risk tion (ICGA) PresiA higher APH generally means management tool. Premium reductions are expected to spur dent Jeff Scates higher insurance guarantee. Togeth- purchase of higher-coverage “buy-up” policies in 2012. applauded RMA’s er, yield trend and rate adjustments decision, while noting ICGA and others have sought offer “very enticing enhancements” for farm policyholders, Yoder said. rate adjustments for “nearly 10 years and across mulBY MARTIN ROSS FarmWeek

tiple administrations.” Ratings under the existing program have resulted in premium “overpayments,” Scates said.

By law, RMA is expected to achieve an overall one-toone ratio of claims to premium costs. In the “I” states (Illinois, Indiana, and Iowa), corn returns largely have fallen “well below” that target, Yoder said.

Scates charged House Ag Chairman Frank Lucas’ (ROkla.) intervention in USDA’s rate review with “politicizing an action that should have been an ordinary course of RMA business. As a result, he said, the re-rate did not correct farmer overpayment “as much as it could have,” though Yoder called new re-rating a “step in the right direction.”

In Yoder’s view, it’s also a key step in shaping a crop insurance program that meets farm safety net needs. The 2008 farm bill improved subsidies for coverage of “enterprise units” — all acres of a single crop in a county, Yoder said.

Cuts in federal payments to crop insurers helped “trim back explosive growth in profits” among some insurers with higher-risk customers, argued American Farm Bureau Federation (AFBF) deputy executive policy director Dale Moore.

Crop insurance tops IFB’s list of farm bill priorities, but Midwest delegates at AFBF’s forthcoming annual meeting must win support among southern growers underwhelmed by past policy performance. Moore sees new insurance refinements enabling farmers to boost revenue protections, absorb rising input costs, or just bank savings “for whatever comes next.”

“That may not even be as significant for folks in the ‘I’ states as it for other parts of the country where somebody who normally buys the minimum coverage they can get away with may think, ‘I’m starting to understand why the guys up north are buying up,’” the former USDA chief of staff told FarmWeek.

“The more participation we get, the more the risk is spread out and the more the rates can come down.”

FarmWeek Page 6 Monday, December 5, 2011

production

70 percent of new food production from technology?

BY DANIEL GRANT FarmWeek

The United Nation’s Food and Agriculture Organization (FAO) recently clarified its food production estimates for the future.

Many reports in recent years have stated farmers must double food production worldwide by 2050 to feed a growing population. The world population recently surpassed 7 billion people and is projected to reach 9 billion by 2050.

FAO this month issued a new report on land and water challenges that estimated food production must grow by 70 percent, relative to 2009 lev-

Roger Cady

els, by 2050.

The official projection by FAO obviously is less than previous estimates, but it still presents a daunting challenge to farmers and the

food industry.

So how will farmers produce the additional food necessary to feed a larger population?

Roger Cady, senior technical adviser for Elanco, believes technology will be the key.

“We need 70 percent more food (by 2050), and I believe 70

percent of that must come from technology,” Cady said recently during a keynote presentation at the Illinois Commodity Conference in Bloomington.

“Why (technology)?” he continued. “There’s only about 10 percent more land available to grow food, and we can only increase food production by about 20 percent through traditional management improvements,” such as irrigation.

Cady said there usually is some initial push-back when new technologies are introduced, but in the end, improving farming efficiencies and production per unit is vital to boosting food production.

He pointed out there was massive negative reaction in the early 1900s to putting rubber tires on tractors and against the pasteurization of milk, but the widespread adoption of both helped revolutionize the ag industry.

“I believe technology keeps people in business, not put them out of business,” Cady said. “Economics drive expansion and efficiency.”

In order to increase the output per unit, Cady believes farmers must maintain and even increase key inputs.

“Low input systems will never be high output systems,” he said. “We actually need to increase inputs, but at a lower

rate than we increase output.”

For example, Cady reported the carbon footprint per dairy cow since 1944 has doubled, but the carbon footprint per gallon of milk has been reduced by 41 percent due to increased milk output per cow.

Average production per dairy cow since World War II increased from about 5,000 pounds per year to about 20,000 pounds.

“Efficiency has become an absolute must to survive economically,” he added. “We have to get more milk per cow or bushels per acre to reduce fixed costs” which will keep farmers in business and allow them to expand food production.

Groups challenge rule’s impact on ‘family decisions’

BY MARTIN ROSS FarmWeek

Ag groups have voiced concerns about proposed new federal ag “child labor” rules that Illinois Farm Bureau believes would “inject a federal agency into family decisions.”

The U.S. Department of Labor (DOL) last week concluded an extended public comment period for proposed new rules that would define restricted farm activities for workers under 16 years of age.

IFB challenged provisions that would “limit the ability of family members to work together, restrict opportunities to

recruit new young farmers, and impede time-sensitive tasks such as planting and harvesting.”

Tim Maiers, industry relations director with the Illinois Pork Producers Association, noted several “gray areas” in the federal proposal regarding youth livestock education and participation in animal production.

Specifically, DOL proposes to prohibit individuals under 16 years of age from “performing any work in confined areas with stud horses, dairy bulls, and boars.” While Maiers agreed juvenile presence in swine manure pits is “a definite safety

concern,” he said the plan is unclear regarding the mere presence of youth in confinement buildings per se.

The agency’s plan would curtail or place new restrictions on some activities under a current student-learner exemption that enables FFA members to gain early expertise.

DOL would exempt those under 16 who work on their parents’ farm, but Maiers is concerned by the possible limits new regs could place on extended family members and even 4-H involvement.

In that regard, IFB National Legislative Director Adam

‘There seems to be a lot of potential there that really could impact youth livestock programs through 4-H or FFA and just that training experience of having kids working on farms with livestock on them.’

— Tim Maiers Illinois Pork Producers Association

Nielsen sees new rules adopting “a very, very narrow definition of a family farm.” The plan “fails to recognize the multigenerational ownership of many farms,” he said.

“Look at a lot of the kids who show animals that might be housed at an uncle’s place or their grandparents’ place,” Maiers told FarmWeek.

“There seems to be a lot of potential there that really could impact youth livestock programs through 4-H or FFA and just that training experience of having kids working on farms with livestock on them.

“Obviously, any time you’re working around animals, there

are risks of injury. That’s something we don’t take lightly.”

In addition to emphasizing animal care and ethics, the pork industry’s Youth PQA Plus certification program, aimed at farm youth ages 8 to 19, also includes a swine safety component, he noted.

Meanwhile, Illinois county Farm Bureaus sponsored more than 600 health and safety programs, training sessions, and camps in 20092010. An estimated 12,000 Illinois students attended farm safety day camps and more than 11,000 completed farm accident awareness programs during that period.

IFF offering answers to consumers’ questions

The Illinois Farm Families (IFF) is a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau.

It is accepting consumers’ questions and posting answers to those questions on its website {www.watchusgrow.org}.

FarmWeek is publishing the questions and answers to share information and better prepare farmers the next time they are asked a probing question.

Q: When the weather affects the crops, how do the farmers recoup their losses?

Burdette Rosendale, Augusta: Crop insurance can provide financial relief to people who suffer the loss of their crops for whatever reason. Usually, farmers lose their crops due to weather incidents that take place. These include rain, tornadoes, droughts, or floods. Most farmers purchase some type of crop insurance to protect themselves.

Some farmers never recoup their costs from a bad growing season. Sometimes they have to take a loss and rely on whatever savings they have stored up from previous years.

Page 7 Monday, December 5, 2011 FarmWeek

Commodities

Commodity Challenge offers chance to hone marketing skills

BY DANIEL GRANT FarmWeek

Illinois Farm Bureau recently expanded a program that offers members a fun way to improve their commodity marketing skills.

The Commodity Challenge — an online farm marketing game — in 2012 will be available to all IFB members. The contest previously was open to IFB Young Leaders only.

“It’s an extension of what Young Leaders have done,” said Doug Yoder, IFB senior director of affiliate and risk management. “We’ve just elevated it to the next level.”

The Challenge allows players to trade commodities on the cash, futures, and options markets in a simulated game.

No money is exchanged; players instead gain knowledge about the mechanics of pricing crops and they compete for prizes.

Players can choose to play in a variety of divisions,

including women, Young Leaders, college students, or an open division. Prizes for each division will include a new iPad for first place, a $250 Visa card for second place, and a $100 Visa card for third place.

“The main intent (of the Commodity Challenge) is to help producers and marketers improve their grain marketing skills,” Yoder said. “They can practice using tools at realtime prices and with real-time bids.”

Players are encouraged to use hedging tools, such as options, puts, and calls along with forward contracts. A harvest date will be selected for the crops so players also can sell cash products.

There will be a fictitious storage-cost for each crop so players will have to deal with that side of the marketing equation.

Players may register anytime up to July 1, 2012. Trading will begin Jan. 1 and the

U.S. beef, pork sales to South Korea projected to rise as FTA takes effect South Korea last month ratified a free trade agreement (FTA) with the U.S. that is expected to be a boon for American agriculture.

U.S. beef and pork exports to South Korea are expected to more than double once duties on those products are lifted, according to the U.S. Meat Export Federation (USMEF).

“The free trade agreement with (South) Korea is the biggest thing since NAFTA (North American Free Trade Agreement) as it relates to ag exports,” Dan Halstrom, senior vice president of global marketing and communication for USMEF, said last month at the Illinois Commodity Conference in Bloomington.

The trade pact is expected to take effect early next year.

‘This FTA will be huge down the road to increase our ability to have access (to the South Korean market).’

— Mike Haag President, Illinois Pork Producers Association

Duties on U.S. beef (currently 40 percent) will be phased out over 15 years while duties on U.S. pork (currently 25 percent for frozen pork) will be eliminated by 2016.

“This FTA will be huge down the road to increase our ability to have access” to the South Korean market, said Mike Haag, president of the Illinois Pork Producers Association. “If we can sell meat instead of grain, I think that will benefit American agriculture because of the increased feeding and processing that will be done here (in the U.S.).”

USMEF projected U.S. pork exports to South Korea, which totaled $190 million in 2010, will more than double while U.S. beef exports were projected to jump from $518 million in 2010 to more than $1 billion per year by 2026.

U.S. meat exporters this year may be getting a taste of market potential as South Korea eased tariffs due to a severe outbreak of foot-and-mouth disease that eliminated more than one-third of its swine herd.

U.S. exports to South Korea so far this year compared to last year are up 139 percent for pork and 45 percent for beef.

“I foresee exports continuing to increase,” said Jeff Beasley, president of the Illinois Beef Association. “They’re already good, but they’ll get even better with the passage of FTAs. We’re looking for South Korea to be a huge market.”

The U.S. in October also ratified FTAs with Colombia and Panama. — Daniel Grant

game will end Nov. 30, 2012.

Winners of the contest will be announced at the 2012 IFB annual meeting.

“This is something we hope will draw enough interest that we can build on it year after year,” Yoder said.

For more details or to register for the Commodity Challenge, go online to {www.ilfb.org/challenge}.

Low-tunnel workshop to be held Dec. 12 in Ashland Vegetable growers may learn about extending the growing season through the use of high tunnels from 1 to 3:30 p.m. Monday, Dec. 12, at Oak Tree Organics, Ashland.

“Many Illinois growers are using high tunnels for their spring, summer, and fall harvest, but few have made the leap to using low tunnels for winter growing,” said Deborah CavanaughGrant, local food systems and small farms University of Illinois Extension educator.

Chad Wallace, owner of Oak Tree Organics, is hosting the field day to provide participants an opportunity to learn about winter production.

Workshop topics will include: winter growing in tunnels, varieties suitable for growing during

winter, construction and setup of tunnels at a low cost, care for and harvesting of winter crops, and marketing winter products.

Oak Tree Organics offers a variety of fresh produce, fruits, and eggs. The farm has sold produce to the local farmers’ market for seven years and makes weekly deliveries to the Springfield, Jacksonville, and Petersburg areas.

The fee is $15 for individuals who are not members of the Central Illinois Sustainable Farming Network (CISFN) and free to members.

Registration is available online at {http://web.extension.illinois.edu/lms}. For more information, contact Cavanaugh-Grant at 217-782-4617 or cvnghgrn@illinois.edu.

FarmWeek Page 8 Monday, December 5, 2011

production

Tight seed supply could force farmers to mix and match hybrids

BY DANIEL GRANT FarmWeek

Some farmers may feel like they’re on the game show “Let’s Make a Deal” when it comes to placing corn seed orders for the upcoming growing season.

Extreme heat and drought that occurred last summer at the peak of corn pollination not only reduced yields in many farm fields, it also put a dent in the overall seed supply.

“Farmers may be saying the (seed) industry is just the boy crying wolf with this, but it is not,” Ron Milby, GROWMARK seed division manager, told FarmWeek. “There are some issues with the corn supply.”

Farmers as a result may have to wheel and deal with seed suppliers and possibly mix and match hybrids in order to plant all their intended acreage next spring.

“The seed corn planted early had good yields, but the later corn that pollinated in the extreme heat was very poor,” Luke Doubet, district sales manager for LG Seeds in Elm-

wood, said recently at the Greater Peoria Farm Show.

“The supply of many of the popular numbers has been shortened up.”

Rod Parkinson, district sales manager in Knox and Peoria counties for Wyffels Hybrids, said wind damage also reduced seed corn yields in some areas, particularly Northern Illinois.

“Production (of seed) was low for obvious reasons,” he said.

And the timing couldn’t be worse as many farmers were expected to plant at least as much if not more corn in 2012 than they did this year.

A Farm Futures magazine

survey of 2012 planting intentions released earlier this year at the Farm Progress Show projected plantings will increase by 1.7 percent for corn, 2.3 percent for soybeans, and 3.1 percent for winter wheat.

“As long as we can supply the seed, I think there will be more corn acres,” Parkinson said.

Many seed companies this season will rely more heavily on South American seed production to fill U.S. orders.

Some estimates project anywhere from 17 to 20 percent of corn seed for 2012 could come from outside the U.S. “It’s a big, big bet on South

America,” Milby said.

So far, the new seed crop appears to be off to a good start.

“Like many companies, we have production in South America,” said Craig Kilby, sales agronomist for Burrus Hybrids in Arenzville. “And it looks very good right now.”

Parkinson noted Wyffels Hybrids this year increased seed plantings in Chile to its highest level ever.

But farmers who want to lock in orders of particular corn hybrids shouldn’t wait to see how the crop turns out in South America. In fact, they should place orders as soon as possible and be prepared to

take delivery of the seed.

“I’d take delivery early and get it in your shed to ensure you have it,” Doubet recommended.

Milby advised farmers not to panic as they order seed in coming weeks.

“I think there will be enough seed to plant the acres we’re talking about,” he said.

“It just may not be their first choice” of varieties in some instances.

The supply of soybean seeds, on the other hand, appears to be ample for the upcoming season, although there could be some quality issues, according to the seed industry representatives.

Policy follow-through needed

Illinois’ newest winter crop off to solid start

BY MARTIN ROSS FarmWeek

Even if it requires some initial “scaling back,” Peter Johnsen and colleagues are confident pennycress will prove no mere flash in the diesel combustion chamber.

However, the federal government can’t scale back in its commitment to biofuels use if it hopes to spur homegrown energy production, warned Johnsen, chief technology officer with Arvens Technology Inc. and consult-

ant with Illinois-based Pennycress Partners Inc. (PPI).

PPI has launched largescale commercial production of the mustard-related, highoil biodiesel feedstock crop.

Pennycress was seeded by air into standing corn in September, and timely fall rains and warm autumn temps have contributed to “a strong start for the winter,” Johnsen told FarmWeek.

Production is spread largely across Knox, Peoria, and McLean counties, though PPI has contracted with a few “stragglers” below Interstate 74 to gauge “how far

and job creation as we move forward with implementation of (RFS2).”

That potential lies largely in “RINs,” or renewable identification numbers — the currency of the RFS2. The U.S. Environmental Protection Agency (EPA) tracks compliance with biofuels requirements through RINs, and biodiesel producers generate 1.5 RINs for every gallon.

RFS2 biodiesel requirements have resulted in a RINS market of sorts — RINS can be traded or brokered among diesel blenders.

The EPA has proposed 1 billion gallons of biodiesel use in 2012 and 1.28 billion gallons’ use in 2013 and NBB spokesman Ben Evans hopes EPA will formalize those targets. south we can go,” Johnsen said. PPI aims for an eventual 10,000 crop acres, but it settled on 1,500 for the 2011-12 season.

“When we started to look at the seed we had, the contracts we were able to get for the oil, and the relationships we were able to build, we ended up scaling back significantly,” Johnsen said. “We decided we needed to walk a little bit before we ran.”

While biodiesel tax credits are seen as a key component in driving demand, Johnsen sees the federal Renewable Fuel Standard (RFS2) as an even more crucial driver.

National Biodiesel Board (NBB) Chairman Gary Haer told industry leaders “we are poised for continued growth

Further, off-road and bioheat biodiesel use generate marketable RINs under the revised standard.

The EPA has proposed 1 billion gallons of biodiesel use in 2012 and 1.28 billion gallons’ use in 2013, and NBB spokesman Ben Evans hopes EPA soon will formalize those targets.

With production now at a record 800 million gallons, Evans told FarmWeek the industry “clearly has the capacity to meet those goals.”

“The real secret of success for biodiesel will be in the enforcement of renewable fuel standards, which allows the marketplace for RINS to help the (biodiesel) development program,” Johnsen said.

Page 9 Monday, December 5, 2011 FarmWeek

Farmland values

3Q farmland values post largest increase since 1977

BY DANIEL GRANT FarmWeek

Farmland values continue to break new ground despite the fact that crop prices in recent months have dropped considerably from historic highs.

The value of good farmland in the Federal Reserve Bank of Chicago district — which includes the northern twothirds of Illinois and Indiana, Iowa, and the southern half of Michigan and Wisconsin — in the third quarter posted its largest gain in 34 years.

Overall, farmland values in the district in the third quarter increased 25 percent from the same time last year (the largest jump since 1977). The latest run-up in farmland prices represented a 7 percent increase from prices in the second quarter.

The rise in farmland values

by state in the third quarter compared to last year was 23 percent in Illinois, 29 percent in Indiana, 31 percent in Iowa, 16 percent in Michigan, and 17 percent in Wisconsin.

“Certainly, land values have risen quite dramatically,” said David Oppedahl, business economist with the Federal Reserve Bank of Chicago.

“But fundamentals seem to support it.”

Higher land values are reflective of higher commodity prices, which obviously have made acquiring land, either via purchase or cash rent, more important to farmers.

USDA recently projected U.S. net farm income this year will total a record-high $100.9 billion, up 28 percent from 2010.

“The income stream has grown and that is being

Northern Illinois farmland fetches $25.5 million Farmland available for purchase has been hard to come by in recent years as many owners clung to their rapidly appreciating property.

But that certainly was not the case last month as Schrader Real Estate and Auction Co. auctioned off a whopping 3,355 acres of farmland in Boone County in Northern Illinois.

Bidders jumped at the opportunity to expand farming operations or add land to their portfolios as 15 people snatched up the farmland for a total of $25.54 million.

“Farmland values remain strong,” said R.D. Schrader, president of Schrader Real Estate and Auction Co. “We had a good bit of variation in land location and quality. We had a few of the highest-quality tracts with bids for $10,000 per acre and more.”

Jim Athans of Williams Bay, Wis., purchased 2,403 acres of the land for $19.05 million while the remaining acres were divided among 14 bidders.

Athans, who owns Rockton’s Chemtool, a grease and lubricant manufacturer, reportedly is selling that business to a division of Warren Buffett’s Berkshire Hathaway.

After the auction Athans, who said he had boyhood connections with farming, told the Rockford Register Star he was unsure what he will do with the farmland, but it was too good of an opportunity to pass up.

Investors’ interest in farmland currently is high, but Schrader said farmers continue to offer a majority of the top bids at auctions.

“Bidders from Boone County and the surrounding areas were especially strong bidders throughout the auction,” Schrader said. “There were definitely a lot of people seeking a single tract of 50 or 100 acres, either to farm or as an investment.”

The Boone County farmland auction last month was the second $25 million sale in a one-week period auctioned by Schrader. The company last month also auctioned off Anderson Circle Farms, near Lexington, Ky., which sold for $25 million.

Schrader said the market shows no immediate signs of slowing down but eventually could be due for a correction.

“There are a lot of variables in favor of farmland,” he said.

“But, at some point, there could be a correction coming. It’s just not real evident if or when it’s coming.”

The Boone County farmland was sold by the owners of KB Farms Inc. and Funderburg Farms to take advantage of the current market and adjust their portfolio.

“This is a fraction of our Boone County land, and our commitment to the area is as strong as ever,” said Rob Funderburg, president of K-B Farms.

The Funderburg Family still owns more than 7,500 acres in Boone County and remains the largest landowner in the county, the Register Star reported.

The recently auctioned land is located near Belvidere. Of the total, 2,900 acres, is tillable. — Daniel Grant

reflected in land prices out there,” Oppedahl said.

He sees no sign of a bubble in the land market but noted the direction of land prices in the future will be influenced by commodity prices.

The Federal Reserve Bank of Chicago last month examined the market when it hosted a national conference on farmland values.

“The consensus of people who follow farmland values is we aren’t in a bubble,” Oppedahl said. “There is room for values to continue to increase, but it’s dependent on

(commodity) prices.”

If the recent direction of crop prices continues, however, it eventually could put at least some downward pressure on land values.

Crop prices from September to November dropped by an average of about $1 per bushel for corn and $2 per bushel for soybeans.

And, in a corn-soy rotation, that translates to an average drop in farm returns of about $145 per acre, according to Gary Schnitkey, University of Illinois Extension farm management specialist.

Schnitkey’s full report on farm return projections is available online at {www.farmdocdaily.illinois.edu}.

“The markets are volatile right now,” Oppedahl said.

“We don’t anticipate a major turn, but we’re always one event away from some dynamic adjusting the market up or down, so (farmers) need to be prepared for both.”

Oppedahl reviewed the past and believes the current runup in land values, while similar in scale to the 1970s, likely won’t result in a 1980s-style crash and massive liquidation.

“It’s a very different time period,” the economist said.

“In the 1970s, one of the key problems was inflation. Now inflation is contained and we’re not in a situation where farmers are overextended” as many were in the early 1980s.

As of Oct. 1, the Chicago Federal Reserve district average interest rate on ag real estate loans was 5.36 percent.

Interest rates in the early 1980s peaked at levels nearly three times as high as that.

FarmWeek Page 10 Monday, December 5, 2011

Conservation

Survey shows Illinois farmers adjust conservation practices to meet needs

BY KAY SHIPMAN FarmWeek

Illinois farmers essentially are staying the course with soil conservation practices despite some wet growing seasons, based on the results of a new conservation survey.

The Illinois Department of Agriculture (IDOA) recently released the 2011 Soil Conservation Transect Survey conducted last spring and summer in more than 49,000 fields.

Alan Gulso, IDOA land and water specialist, noted some farmers changed conservation tillage practices, but they didn’t turn to conventional tillage to tackle tough field conditions.

“When you look at where we’re at, conventional tillage hasn’t gone up a lot,” Gulso told FarmWeek. “The amount of no-till decreased over the last two or three years, but we had wet springs and falls.

There were a lot of ruts in fields that needed to be addressed with some sort of tillage.”

The biennial survey showed total no-till acres for all crops

decreased to 24.2 percent, down from 29.2 percent in 2009. Instead, farmers increasingly used mulch-till and reduced-till this year, 21.4 percent and 22.6 percent, respectively.

Mulch tillage leaves more than 30 percent of the crop residue on the soil surface after planting; reduced tillage leaves between 16 and 30 percent residue. Conventional tillage leaves 15 percent or less residue.

This year, Illinois saw fewer no-till acres for all crops — the largest decrease was with no-till soybeans, down 7.6 percent. Meanwhile, more soybean acres were planted with mulch-till and reduced-till and fewer with conventional tillage.

Fewer corn acres also were planted with no-till this year, compared to 2009.

Gulso attributed some of the tillage shifts to changes in crop rotations and the hybrids planted.

“The move to mulch-till may be because of heavier residue pressure. We’re seeing

more rotations move to corn after corn,” Gulso said. “When you have beans every other year, it reduces the amount of residue.

“You also have corn hybrids now with thicker stalks” that result in more residue, he added.

Gulso noted farmers judiciously are applying tillage practices to flatter, non-erodible fields instead of more highly erodible ones.

The survey was completed with help from the state’s 98 soil and water conservation

districts and USDA Natural Resources Conservation Service staff.

It was first conducted in

1994 to measure reductions in soil erosion and to determine the types of tillage practices being used.

Rural Development funds broadband project for Southern Illinois access USDA Rural Development recently awarded a broadband grant for a telemedicine project in Southern Illinois, one of 10 projects nationwide to receive funding.

In Illinois, Rural Development funds were awarded to Connect SI Foundation Inc. to finance the Southern Illi-

nois Delta Regional Simulation and Learning Lab Project.

The $519,924 grant will help provide distance-learning equipment and related technical support to four local colleges and two high schools for health education and health care job training through broadband-based technologies.

The project will serve the southernmost counties of Illinois and reduce concerns about the availability of health Colleen Callahan care jobs and services in the region.

“The future of health care in rural Illinois depends in large part on preparing our youth for careers in health service,” said Colleen Callahan, Rural Development state director.

“With the help of broadband, we can expand educational opportunities to areas where they are espe-

cially needed.”

The project will be based at the Regional Simulation Lab on the John A. Logan College campus in Carterville. The lab, part of Southern Illinois Healthcare, will be the class site location with high-tech mannequins and equipment.

Classes will be offered through Shawnee College, Rend Lake College, Southeastern Illinois College, and John A. Logan College.

The new classes will make it easier for area nurses to stay current with continuing education requirements.

The project includes offering distance-learning classes to students at two high schools located in Pulaski and Alexander counties.

The goal is to increase health care education opportunities and provide a local workforce to ensure the continuing availability of quality health care.

Connect SI is a collaborative, regional economic strategy for the southern 20 counties of Illinois.

CGB buys Western Illinois grain, fertilizer company Consolidated Grain and Barge (CGB) Inc. last week announced it purchased Twomey Co., a third-generation grain and fertilizer company headquartered in Smithshire in Western Illinois.

The grain and fertilizer assets CGB acquired in the deal include eight locations with total storage capacity of 51 million bushels plus 18,000 tons of liquid fertilizer capacity.

A Twomey company spokesman said he believes

CGB will retain all the current employees of the 66year-old Twomey Co. The new entity will be known as CGB-Twomey Group.

CGB has 1,200 employees and 70 grain-handling locations in the central U.S. CGB earlier this year purchased the former Didion Milling facility in Benton, located in Southern Illinois, and it also has a new grain facility near Dwight in EastCentral Illinois with shuttle train loading capabilities

Page 11 Monday, December 5, 2011 FarmWeek

farm safety

Carle stepping up rural/farm CPR training

BY MARTIN ROSS FarmWeek

According to the American Heart Association (AHA), brain cell death occurs 4-6 minutes after cardiac arrest.

In remote rural areas, emergency response may take double that time.

Carle Center for Rural Health and Farm Safety thus is stepping up the push for rural/farm CPR (cardiopulmonary resuscitation) training.

Carle offers HeartSaver CPR and first aid classes in various rural communities throughout East-Central Illinois.

Classes are available to the public free of charge, but Carle farm safety specialist Amy Rademaker warns courses fill

quickly. Registration for 2012 classes began last week — to register or for information, visit {carle.org/cpr}.

AHA CPR guidelines changed in 2010, and thus updated training is crucial.

Rademaker notes rural residents often must wait twice as long as their urban counterparts for emergency response or medical care. According to the Illinois Department of Public Health, the average response time for emergency agencies in the ChampaignUrbana area alone is between 5 and 5.5 minutes.

In 45 East-Central Illinois rural communities, the average response time can increase to 10-12 minutes. Given that

LIFE-SAVING BASICS Formal CPR training is key to perfecting life-saving technique, but in the event of an emergency, rescuers should remember these important tips: • Administer chest compressions at a rate of at least 100 times per minute. That can be done to the beat of the popular 1977 Bee Gees song Stayin’ Alive, which was featured in the film Saturday Night Fever.

• Push deeper on the chest, compressing at least two inches in adults and children and 1.5 inches in infants.

• Avoid leaning on the chest between each compression to allow it to return to its original position.

• Continue chest compressions until emergency responders arrive. If you need a break, have someone else fill in.

• Deliver two breaths for every 30 chest compressions if the victim remains unresponsive.

See diagram above for the American Heart Association’s simplified procedure for administering adult CPR.

More than 150 speakers, exhibitors on tap for specialty crop conference The Illinois Specialty Crops, Agritourism, and Organic Conference to be held Jan. 11-13 at the Crowne Plaza Hotel in Springfield will feature 100-plus speakers and 50 trade show exhibitors.

Four concurrent preconference workshops, general sessions, and breakout sessions aimed at helping Illinois specialty growers cultivate their operations will be held.

On Wednesday, Jan. 11, participants may attend one of four preconference workshops, including Getting Started: Guidelines and Resources for New Growers, Scaling Up Local Food Systems, Expanding Farmers’ Market Opportunities and Legal Issues for Specialty Crop Producers.

The conference officially opens Jan. 12 with a general session and keynote address titled, “Foods that Heal — How Eating Local Foods Can Lead to a Sustainable and Healthier Community,” featuring Michael McGreal, chef and culinary educator at Joliet Junior College.

Participants may attend breakout sessions Thursday, Jan. 12, and Friday, Jan. 13, featuring: agritourism, fruits, vegetables, herbs, organic foods, and emerging issues and opportunities.

Following Thursday’s breakout sessions, the annual banquet will include a keynote speech titled, “A Lifetime of Resource Conservation on Farm and Home — Doing it the Easy Way,” presented

by Jerry Mills, Mills Apple Farm, Marine.

The 23rd Annual Apple Cider Contest and 10th Annual Hard Cider Contest again will be held in conjunction with the conference, with winners being announced Thursday evening.

To receive registration materials or to obtain exhibitor information, contact Diane Handley at 309-557-2107 or dhandley@ilfb.org.

A detailed conference agenda and cider contest details may be viewed at {www.specialtygrowers.org}. A block of rooms has been reserved at the Crowne Plaza Hotel at a rate of $87 per night.

Call the hotel directly at 217-529-7777 and ask for the Illinois Specialty Crops, Agritourism, and Organic Conference room block to make reservations at the conference rate.

extended window, “it’s critical that CPR be started before (responders) arrive,” Rademaker said.

“Every minute counts, even when they have your address,” she told FarmWeek. “Imagine them not having your address, because it’s a field.

It’s unreal how much time it might take.”

Illinois Farm Bureau safety specialist Peggy Romba notes the potential for cardiac emergencies in cases of farm electrocution, falls, or other traumatic accidents.

“It’s a hazardous occupation, and it’s always good to have some sort of training,” Romba said.

Previously, AHA recommended initially opening the victim’s airway and then deliv-

ering breath. New, simplified AHA guidelines encourage

rescuers to begin chest compressions immediately on anyone who is unresponsive.

Because victims still have

oxygen in their lungs and bloodstream during the first few minutes of cardiac arrest, research has shown that starting compressions can pump blood to the victim’s brain and heart sooner.

Rademaker urges that more than one person on a farm or workplace be CPRcertified in the event an alreadytrained responder is the one who requires medical attention. Rescuers must stay up to date on new CPR requirements and get re-certified when their cards expire.

For information on new guidelines, visit AHA at {www.heart.org}.

For CPR classes outside Carle’s service area, contact the local county Farm Bureau or health department or hospital.

FarmWeek Page 12 Monday, December 5, 2011

awards

IAA Foundation offers scholarships to support ag The IAA Foundation will award 56 scholarships ranging from $1,000 to $4,000 per year for the 2012-2013 school year. Agriculture students and Illinois Farm Bureau members and their children are eligible to apply. In all, the scholarships will total $104,900.

“It is a great privilege to support our next generation of leaders and encourage continuing education in agricultural fields,” said Susan Moore, director of the IAA Foundation.

Students may apply for a variety of scholarships, including the Illinois Soybean Association Crop Science Scholarships, which is new this year.

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.

Three $3,000 scholarships, 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 agriculture 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 is 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.

Two Heartland National Agri-Marketing Association Steven A. Hammerschmidt Memorial Scholarships will be awarded to a junior- or seniorlevel college student majoring in agriculture or agribusiness with an interest in agriculture marketing, sales, or communications at Illinois State University or the U of I. 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 scholar-

ships 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 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 {www.iaafoundation.org}.

Completed applications must be postmarked on or before Feb. 1, 2012.

For more information, contact your county Farm Bureau, the IAA Foundation at 309-557-2230, or e-mail charms-garman@ilfb.org.

Conservation initiative ranking deadlines released by NRCS The Natural Resources Conservation Services (NRCS) last week released deadlines for applications to be ranked for four Environmental Quality Incentives Programs (EQIP).

Although farmers may apply on a continuous basis throughout the year, there will

be three ranking periods for the organic, on-farm energy, seasonal high tunnel, and air quality initiatives. Illinois farmers may apply for any or all four programs.

At the end of a ranking period, all submitted proposals are ranked for potential funding and applicants are notified about the results.

There will be three ranking deadlines for the organic, onfarm energy, and seasonal high-tunnel programs: Feb. 3, March 30, and June 1. There will be two ranking deadlines for the air quality initiative: Feb. 3 and March 30.

Under the on-farm energy initiative, NRCS staff and farmers develop agricultural energy management plans or farm energy audits that assess energy consumption on an operation. Audit information is used to develop energy conservation recommendations for grain handling operations, livestock buildings, and other farm facilities.

Under the organic initiative, certified organic growers and farmers who are working to achieve organic certification install conservation practices

for organic production.

New for fiscal year 2012, applicants will be evaluated continuously during the ranking periods. Applicants who meet or exceed a threshold score may be approved for an EQIP contract before the end of the ranking period. Those who receive a lower score will be deferred to the next period.

Under the seasonal hightunnel pilot initiative, farmers receive assistance in planning and implementing high tunnels, which are steel-framed, polyethylene-covered structures that extend growing seasons. Through this initiative, more than 4,000 high tunnels have been planned and implemented nationwide, including some in Illinois.

Under the air quality initiative, farmers receive assistance to address air quality concerns on their farms.

Assistance includes establishing cover crops, planting windbreaks, implementing nutrient management practices, and applying other conservation measures.

Contact your local NRCS office for more information about these initiatives.

Simon seeking rural champions Lt. Gov. Sheila Simon is seeking individuals or groups who are making a difference in rural Illinois. Selected nominees will be featured on her web and social media sites.

Nominee information must include: name, community, occupation, and area of service (economic development and community revitalization, agriculture, education and empowerment, sustainability, public service, or other).

Also required is a 250-word or shorter explanation of how the nominee “goes above and beyond to make a difference in rural Illinois.”

The nominator must include his or her name, e-mail address, phone number, community, and state.

Nominations may be submitted electronically to christina.rogers@illinois.gov or by mail to: Office of the Lt. Governor, Stratton Building, Room 414, Springfield, IL 62706, Att: Christina Rogers.

Page 13 Monday, December 5, 2011 FarmWeek

IAITC/GROWMARK

GROWMARK renews commitment to IAITC programs with gift GROWMARK recently renewed its commitment to Illinois Ag in the Classroom (IAITC) programs with a check for more than $56,000 presented to IAA Foundation Vice Chairman Rich Guebert Jr. at a ceremony in Bloomington.

“It is imperative that the young people of today — who will be the decision-makers of tomorrow — understand the importance of agriculture,” said Jeff Solberg, GROWMARK chief executive officer.

GROWMARK has provided annual contributions to the IAITC program since 2003.

One-half of the donation is used for direct grants administered by FS member cooperatives at the local level.

This year’s contribution brings the eight-year total to more than $460,000.

“Having this meaningful partnership with GROWMARK gives ag literacy coordinators the ability to further their outreach on behalf of Illinois Agriculture in the Classroom,” said Susan Moore, IAA Foundation director.

The IAA Foundation was established in 1987 to support educational, research, and

charitable activities which benefit agriculture, Illinois farm families, and county Farm Bureaus.

IAITC provides agriculturebased curricula for K-8 students and teacher training.

The IAA Foundation sup-

ports IAITC programs through a variety of annual fundraising activities and donations.

AFBF, other ag groups urge Congress to review bankruptcy Nineteen agriculture and lending organizations, including the American Farm Bureau Federation, last week sent a letter to Congress urging lawmakers to review the MF Global Bankruptcy that was filed on Halloween.

In particular, the letter requested lawmakers investigate protections that were believed to be in place for customer-segregated funds.

MF Global after its bankruptcy was filed was unable to account for customer-segregated funds estimated to total anywhere from $600 million to more than $1 billion.

The bankruptcy trustee responsible for identifying assets of MF Global’s com-

modity brokerage business continues to investigate the extent of the shortage.

“Our goals are twofold,” the organizations wrote.

“Pursue all possible actions that will ensure that assets of MF Global customers will be returned quickly and make sure this situation never recurs.”

Other organizations that signed the letter include Farm Credit Services of America, National Grain and Feed Association, National Corn Growers Association, National Pork Producers Council, and the National Association of Wheat Growers.

A similar letter also was sent last week to the Commodity Futures Trading Commission.

FROM THE COUNTIES

B

UREAU — The District caucus meeting for nominating directors will be at 9 a.m. Thursday at the Farm Bureau office. Contact the office if you would like to fill a position on the board.

• The Young Leader Committee will sponsor an Ugly Sweater party at 6 p.m.

Wednesday, Dec. 21, at Wise Guys Bar and Grill, Princeton.

Members ages 18 to 35 are invited. Call the Farm Bureau office at 815-875-6468 by Monday, Dec. 19, for reservations or more information.

• The winter Ag in the Classroom educational meeting has been postponed until Jan. 25. Teachers who attend will receive continuing education credits. Call the Farm Bureau office at 815-875-6468 for reservations or more information.

ASALLE — Farm Bureau seed plot result booklets are available on the website {www.lasallecfb.org}

L

or at the Farm Bureau office.

EORIA — Citrus and nut orders may be picked up Wednesday, Dec. 14, at the Farm Bureau office.

• A stroke detection health screening will be Wednesday, Dec. 21, at the Farm Bureau office. Members will save $35 on four screenings. Call 877732-8258 for an appointment or more information.

TARK — Prime Timers will meet at noon Friday at the Farm Bureau office for a Christmas party. Ham will be served. Bring a covered dish to share. Plans for upcoming trips will be made.

Call the Farm Bureau office at 286-7481 by Wednesday for reservations or more information.

P

S

“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.

Illinois Ag in the Classroom (IAITC) Education Director Kevin Daugherty leads a lesson in seed germination called “beanie babies” while, from left, Illinois Farm Bureau staff member Amanda Beasley, IFB director Terry Pope, IFB Young Leader Chairman Sean Arians, and FS Seed Division Manager Ron Milby look on. The demonstration was given following a GROWMARK check presentation to IAITC. (Photo by Cyndi Cook)

FarmWeek Page 14 Monday, December 5, 2011

profitability

Use knowledge gained in 2011 season to help in 2012

BY JEFF BUNTING

The 2011 growing season has come to an end. It was a year that challenged the norm and provided us with many learning experiences. Many of those challenges were out of our control.

As you preJeff Bunting pare for winter, attend meetings, and start to plan your farming operation for 2012, it will be important to understand the key initiatives that will help make the year successful.

Spend some time discussing your farming practices with your FS certified crop specialist. Over the last couple of years, these specialists have learned the limitations and the potential of pursuing maximum yield on your acres.

They have adopted practices that utilize a well-balanced nutrient program and the use of products to maximize the nutrient potentials.

In the last few weeks, growers have put on a record amount of nitrogen. Many of those acres are using a nitrogen management system by incorporating a nitrogen stabilizer that keeps nitrogen available to meet the needs of the corn plant.

We continue to learn about

other products available to stabilize nitrogen and increase efficacy of other macronutrients. Before making fertilizer decisions, contact your crop specialist and let him/her recommend how to increase your profitability and help protect that yield potential.

We continue to watch commodity prices and the correlation to the use of a fungicide over the corn and/or soybean

acre. With the increase in fungicide applications this past year, your crop specialist is starting to identify the hybrids and/or varieties which respond to that application.

Some of the biotic stress that the corn plant goes through is mitigated by the use of fungicide, resulting in greater stalk strength, better standability, higher grain quality at harvest, and protected yield potential.

BY DANIEL GRANT FarmWeek

ference in Bloomington.

U.S. beef exports through three quarters this year were up 47 percent to South Korea, 39 percent to the Middle East, and 36 percent to Japan.

Meanwhile, U.S. pork exports heading into the fourth quarter this year were up 55 percent to Hong Kong/China, 14 percent to Japan, and 139 percent to South Korea where more than one-third of the domestic swine herd was culled due to foot-and-mouth disease.

Overall, the value of U.S. meat exports this year was projected to total a record-high $5.09 billion for beef and $5.5 billion for pork. Next year, exports were projected to increase to $5.57 billion for beef and $5.6 billion for pork.

“We’ve seen incredible growth,” Halstrom said. “It’s remarkable considering we don’t have full access around the world.”

USMEF currently is working to increase the age limit for beef cattle from 20 months to at least 30 months for sales to Japan, increase market access in China, and is working on an agreement with Mexico to expand sales of variety meats.

A bright side of market access limitations in some countries in recent years is it forced U.S. meat packers and traders to look to other markets.

As a result, major growth areas identified for U.S. meat sales include the Middle East, Taiwan, and Russia, Halstrom reported.

Factors that could limit expansion of U.S. meat exports in the future include a lack of a mandatory animal traceability system in the U.S. and fierce competition for market share from countries such as Australia, Brazil, and Canada.

The U.S. and India are the only two major exporters of meat in the world that do not have mandatory animal traceability systems in place, according to Halstrom.

“It could become an issue,” he added.

People’s basic need to eat is expected to outweigh economic concerns around the world when it comes to meat consumption.

Dan Halstrom, senior vice president of global marketing and communication at the U.S. Meat Export Federation (USMEF), last month predicted U.S. meat exports will set new records this year and in 2012.

“There is world demand out there” despite economic concerns in places such as Europe, Halstrom said last month during a Dan Halstrom keynote presentation at the Illinois Commodity Con-

Feeder pig prices reported to USDA* Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $34.48-$53.21 $42.23 $54.00-$65.00 $63.60 n/a n/a This Week Last Week 25,492 7,686 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $82.20 $79.63 $60.83 $58.93

Change 2.57 1.90

USDA five-state area slaughter cattle price Steers Heifers

FS crop specialist has been asked that question, and more importantly, he or she has the tools and knowledge to lead you in the right direction.

Let’s take the successes from 2011 and incorporate them into 2012.

Jeff Bunting is GROWMARK’s crop protection marketing manager. His e-mail address is jbunting@growmark.com.

U.S. meat exports could stay on record-breaking pace

M A R K E T FA C T S

Carcass Live

We need to continue to use integrated pest management practices so that resistance to the diseases that we see almost every year does not occur.

New products are being introduced that use different modes of action, but we have learned weed resistance can develop.

Consider this: What’s the maximum yield potential attainable on your farm? Your

(Thursday’s price) (Thursday’s price) Prev. week Change This week 127.33 124.25 3.08 125.84 124.57 1.27

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 $144.60 142.98 1.62

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 125-155 lbs. for 163.99-174.68 $/cwt. (wtd. ave. 166.93); dressed, no sales reported.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 11-24-11 41.4 15.4 30.6 11-17-11 40.9 13.7 37.8 Last year 63.6 22.4 32.4 Season total 396.2 517.9 353.8 Previous season total 590.6 553.9 417.4 USDA projected total 1375 975 1600 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Class III milk price climbs The Class III price for milk adjusted to 3.5 percent butterfat for the month of November was $19.07 per hundredweight, $1.04 higher than the previous month.

Higher milk prices come after the strong demands during the holiday. Prices have been chopping up and down the past few months. This month’s announcement matches the September price.

Dairy cows are hitting their stride this time of year, as new feed and cooler temperatures nudge milk production higher.

Page 15 Monday, December 5, 2011 FarmWeek

PROFITABILITY Corn Strategy

C AS H ST RAT E GI S T

Acres to plant aren’t lacking!

As this harvest winds down, the attention already is starting to turn to next year’s crops.

And increasing numbers of private estimates are starting to surface for next year’s plantings.

With the decline in prices since late summer, skepticism over some of these early estimates has increased. We have heard private estimates for corn planting as high as 95 million acres, a 3.1-million-acre increase over the area planted in 2011.

What many analysts fail to consider is the sharp decline in the number of acres planted since the most recent peak in 2008. Acres planted to all crops in “primary corn areas” were 6.6 million acres less this year than in 2008. Another 2.5 million acres came out of the Conservation Reserve Program (CRP) over that same period.

Hence, there’s a total of 9.1 million acres that could be planted to crops.

Informa Economics last month projected 2012 corn plantings could be 94 million acres, soybeans 76.1 million, and wheat 57 million. That’s only a 5.8 million increase from the acreages planted in 2011.

That’s nearly 1 million acres below the 6.6 million acre decline in all crop plantings since 2008.

Most of the 6.6-million-acre decline in plantings since 2008 and the 9.1-million-acre drop in land use since 2008 is in the Northern Plains. The Dakotas account for 4.9 million and 5.8 million acres of those changes, respectively. About 5.8 million acres were declared “prevented plantings” in those two states in 2011 in the latest USDA/Farm Service Agency update.

Some analysts are concerned the lower prices will discourage plantings. But when you don’t plant a crop, there’s no income to cover fixed costs, either cash rent or land taxes.

Even in areas with loweryielding land such as Southern Illinois, the non-land costs are less than $3.50 per bushel for corn and $7 for soybeans. Anything more than that covers the variable expense, while providing money to apply to the fixed cost, cash rent, or land taxes.

The acres are there. The economic incentive will be there. The unknown is whether the weather will allow the acres to get planted. But after four consecutive years of planting difficulties in some part of the Midwest, one would think we are due for a better spring than the ones we have had recently.

Cents per bu.

ü2011 crop: Wait for March futures to rebound to the $6.20s to make catch-up sales, but if that doesn’t happen soon, abandon the strategy. Hedge-toarrive (HTA) sales for late winter/spring delivery are still the best marketing strategy for farm-stored grain, especially with the recent spread widening.

Commercial storage is a closer call depending on your storage rate. Compare your options with commercially stored corn. ü2012 crop: Hold your sales at 20 percent. Depending on how deep prices decline in the short term, we could recommend buying call options against sales on the books, and ones we plan for the winter.

HTA contracts are still the best tool for making sales at this time, but we’d use forward contracts if the basis is good. vFundamentals: The lack of demand for U.S. corn continues to be a drag on the market. News that Chinese farmers harvested a 191-million-metricton (mmt) crop weighed on prices as well, along with China’s indication it does not plan to import corn any time soon.

Soybean Strategy

ü2011 crop: Wait for a rebound to $11.60 on January futures for making catch-up sales, but if that doesn’t happen by year’s end, abandon the strategy. A HTA for spring delivery for farm-stored soybeans has become more attractive with the spread widening.

Compare your alternatives for commercial storage. ü2012 crop: Use a rebound to $11.70 on November 2012 futures to make catch-up sales, but if it doesn’t come by year’s end, abandon the idea. We prefer HTA contracts, but would use a cash contract if the basis level is good. vFundamentals: Europe’s debt problems and the impact they are having on currency values are having a large impact.

But a warmer, drier pattern in Argentina and Brazil is starting to offer support. That pattern is worth noting, but is nowhere near crop-threatening yet. Chinese buying is more regular, but not at levels that would get trade attention. As a whole,

export demand for soybeans and products remains soft.

Wheat Strategy

ü2011 crop: Short-term momentum turned positive when Chicago March cleared $6.08. Still, the long-term trend points lower. Prices could challenge the Chicago March $5.86 low, maybe even drop lower. Sales are 80 percent complete. Wait for a rebound to $6.30 before making catch-up sales. The carry in futures still pays for commercial storage, making spring HTA contracts the best tool. ü2012 crop: New-crop

sales are currently 20 percent complete. Wait for a rebound to $6.65 on Chicago July futures to make a catch-up sale. vFundamentals: Last week’s surge in wheat prices can be linked to the move by central banks to boost global financial liquidity, and the resulting short-term break in the dollar. Wheat’s overall fundamental picture remains weak, with international supplies still abundant. The Southern Plains are getting more beneficial moisture in the form of rain and snow, boosting newcrop potential somewhat.

Cash Strategist sales recommendations AgriVisor endorses crop insurance by

Beans '11 '12 9/13/10 10% 10.27 8/29/11 10% 13.50 10/11/10 10% 11.54 11/15/11 10% 11.99

AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

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

309-557-2274

4/25/11 10% 13.76

9/13/10 10% 4.61

8/29/11 10% 6.65

10/11/10 10% 5.28 11/15/11 10% 5.671/2 1/24/11 10% 5.87

1/31/11 10% 13.31

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147

Corn '11 '12

80% unsold

4/25/11 10% 6.76 80% unsold

Wheat '11 '12 7/13/10 10% 6.00

7/30/10 10% 6.98

5/31/11 10% 6.79

8/6/10 15% 7.35

8/1/11 10% 13.71 11/15/11 10% 11.99

8/1/11 10% 6.77 11/15/11 10% 6.45

8/8/11 10% 6.68

30% unsold

30% unsold

Prices are new crop or nearby futures

Prices are new crop or nearby futures

5/26/11 10% 13.75

1/2

11/17/11 20% 6.343/4

7/21/10 15% 6.60

11/17/11 20% 6.30 20% unsold Prices are new crop or nearby futures

80% unsold

FarmWeek Page 16 Monday, December 5, 2011

pERspEcTIvEs

Hello, ‘Choice’ beef !

Glad you’re back A

bout four years ago, I wrote a column entitled “Goodbye, T-Bone, Hello, Beef Tripe” in which I complained about not being able to purchase good-quality beef at Walmart.

The good cuts of beef I wished to buy had been replaced by a variety of “culture-specific cuts,” such as sliced beef liver and tripe.

Well, it seems as if Walmart has changed its mind about things, because good-quality beef has returned to the Walmart meat case.

And its return has caused a bit of a stir in beef circles.

First, some background on beef grades. There are eight different grades of beef, as determined by USDA. Only three WILLIAM grades normally are BAILEY available to purchase at the grocery store.

U.S. Prime is at the head of the line, with less than 3 percent of all beef graded as Prime. Next in line is U.S. Choice, still considered high quality but differentiated from Prime by having less marbling.

Coming in third is U.S. Select, the lowest grade of meat commonly sold at retail. While certainly acceptable, it is considered less juicy and less tender than Choice because it is leaner.

Up until recently, Walmart, at its 3,800 stores, sold only U.S. Select beef. Then, about mid-October, Walmart also started to offer higher-quality U.S. Choice cuts. The impact on beef markets has been noticeable.

On July 1, Choice cuts were valued, on average, about $5 per hundredweight more than Select. The Choice-Select price spread now is nearing $20, largely because of Walmart’s interest in Choice cuts.

Cattle that provide Choice beef are normally 3.5 to 4 years old.

Select cuts come from animals as young as 30 months. So, with the combination of high feeding (corn) costs and drought across much of Texas this summer, farmers did not wish to feed cattle any longer than necessary and moved them to market.

As a result, while Select prices haven’t changed much the past few months, Choice prices have taken off — fueled by both fewer older cattle and the sudden increase in Walmart demand — going from $176 per hundredweight in June to almost $190 in November. Select prices have remained flat.

What is causing some meat industry watchers to scratch their collective heads is why Walmart, which is normally associated with low prices, suddenly started offering higherpriced beef.

Walmart has attempted to address

that issue with the statement that the move was in response to customer demands for a broader selection of cuts.

Whether my earlier column was the first complaint about limited beef selection is secondary to the fact that I may again purchase high-

quality beef at Walmart.

A small victory in life, but still a victory. And just in time for my birthday, too.

William Bailey is the director of Western Illinois’ School of Agriculture, Macomb. His e-mail address is WC-Bailey@wiu.edu.

LETTER TO THE EDITOR Immigration answer: Enforce current laws

Editor: “Illegal immigrants do the work that Americans won’t do.”

That is a myth perpetuated by supporters of amnesty, and by some large agricultural and food companies who rely on illegal immigrant labor and provide substandard wages and working conditions.

During the worst economic conditions since the Great Depression with unemployment above 10 percent – more than 15 percent for those without a high school diploma — job creation for Americans is

our most pressing issue.

More than 8 million jobs are held by illegal immigrants. U.S. workers have seen their incomes and opportunities shrink; forcing them to compete with illegal aliens is an insult to hard-working American families.

Mr. Block sits on the board of directors for the large firms Hormel Foods and Archer Daniels Midland. He also has made a radio broadcast in support of the 2007 ‘Immigration Reform’ bill that failed in Congress after a nationwide outcry from the American public.

To protect American jobs and our economy, we need to secure our border, and expand

and permanently adopt the EVerify system that currently allows 180,000 employers to hire a legal workforce.

If we enforce just the current immigration laws on the books, we could turn off the jobs magnet that draws illegals, and many would simply return home voluntarily.

Something is drastically wrong when we allow our socio-economic system to be a safety-valve for 15 to 20 percent of a corrupt, malfunctioning neighboring country’s population.

America has been, and must become once again, a nation of legal immigrants — and a nation of laws.

ROBERT BERGMAN, Palatine Editor’s note: Bergman’s letter is in reference to a Perspectives piece written by John Block and appearing in the Nov. 21 issue of FarmWeek.

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Bergman served in the Illinois House of Representatives from 1996-1999.

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