The iLLinoiS deParTMenT of Agriculture has announced it will hold a referend u m M a r ch 2 8 o n w h e t h e r t o increase the corn checkoff. ...........3
The neW ag direcTor nominee had to hit the ground running as the governor’s budget was announced shortly after his appointment. ...............................3
croP inSurance options abound for this year. Farmers have until the sale closing date of March 15 to sift through the various options. ............................................4
Monday, February 27, 2012
Two sections Volume 40, No. 9
Quinn calls for pension, Medicaid reforms BY KAY SHIPMAN FarmWeek
Gov. Pat Quinn delivered hard truths along with his $33.78 billion state budget for fiscal year 2013. “The truth is ... too many governors and members of the General Assembly have clung to budget fantasies rather than confronting hard realities,” the governor told assembled lawmakers and constitutional officers in his budget address last week. “A rendezvous with reality has arrived.” The governor didn’t give any hard details on how he would cut Medicaid spending by his target of $2.7 billion or reform state pensions that will consume 15 percent of the state’s general revenue fund this coming fiscal year. Instead, the governor directed his Gov. Pat Quinn attention to lawmakers on a pension working group that has until April 17 to propose changes. “Everything has to be on the table,” Quinn said. A “lack of fiscal accountability has cost us dearly today.” On the revenue side, the governor did not discuss specific tax breaks he wants to end in a revenue code that he said “looks like Swiss cheese.” The only tax loophole Quinn targeted was one for companies with oil derricks in the Gulf of Mexico. That loophole costs the state $75 million annually, the governor said. The governor estimated FY2013 general revenue
would be $33.94 billion, about $163 million of which will be available to reduce the state’s debt. As anticipated, the governor said he had asked constitutional officers and agencies to reduce their budgets by 9 percent, the level he has cut from his own budget. The governor pointed out his proposed budget would cut agency spending by $425 million compared with last year’s budget. In addition, Quinn proposed the closing or consolidation of 59 state facilities, including the Centralia Animal Disease Laboratory (see story on page 3). The governor went to great lengths to point out the pain would be shared by “every region of the state.” “The need for lower spending in our budget gives us no choice,” Quinn said. “In times like these, we must be accountable and responsible.” Quinn sought to soften the blow by reciting a laundry list of 33 school districts that will share $623 million in capital funds to update and improve their facilities. He urged legislators to authorize the rest of his capital works programs. The governor proposed a small increase in education funding with the main focus on early childhood education. The public universities generally would receive the same amount or a slight increase in general state revenue funding as they did the previous year. The state’s financial problems are real, serious, and must be dealt with now, Quinn stressed repeatedly. “Don’t plan on going home this summer until this is done,” the governor warned legislators.
State employee pension payments under the current system are consuming a greater share of the state’s general revenue funds. That portion grew from 6 percent in fiscal year 2008 to an estimated 15 percent in fiscal year 2013, according to the Governor’s Office of Management and Budget.
E15 clears EPA health hurdle; several steps remain BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
The U.S. Environmental Protection Agency (EPA) has signed off on “E15” health assurances, moving 15 percent ethanol blends a key step closer to the pump.
Individual states, retailers, and consumers now will determine how soon that will happen. EPA has OK’d E15 human health effects testing data supplied by the Renewable Fuels Association (RFA) and biofuels group Growth Energy. EPA found “no emissions of concern that were significantly different than (standard) E10,” Illinois Corn Growers Association Business Development Director Dave Loos said. Ethanol plants and fuel marketers now can register to sell the fuel, though Loos stressed “that doesn’t mean it’s in the commercial market yet.” “There’s still a little more work to do, but we’ve made great strides,” RFA President Bob Dinneen told FarmWeek at last week’s National Ethanol Conference in Orlando. “I think we’re very close to seeing consumers finally having the choice, at least in some markets, to utilize E15.
“When EPA approved the health effect data (RFA) had submitted, it triggered the next step — (biofuels) producers and gasoline marketers registering with EPA as marketers of E15. That process has begun: Already, there are at least a dozen ethanol producers — RFA members –- that I know about, who have submitted their registrations to the
FarmWeekNow.com Listen to comments from RFA’s CEO Bob Dinneen at FarmWeekNow.com.
agency,” said Dinneen. The Illinois Corn Marketing Board helped fund Texas-based Southwest Research Institute health impact studies included in the industry’s submission to EPA. E15 commercialization is seen as a key step in breaking the ethanol “blend wall” — the imminent point where biofuels
FarmWeek on the web: FarmWeekNow.com
production exceeds demand for current E10 blends. It would set the stage for U.S. graduation to E20 or even E30 blends that would replace more imported petroleum and, according to several studies, offer improved gas mileage over E10. Beyond private E15 registration, state agencies, including the Illinois Department of Agriculture, must adopt new E15 fuel specifications, Loos said. Meanwhile, RFA has completed a comprehensive misfueling mitigation plan for gasoline marketers and ethanol producers including a requirement to survey markets where E15 is to be sold. EPA’s E15 waiver does not cover a number of non-road, marine, and other small engines, and the plan is required to help ensure consumers legally and appropriately use E15. Dinneen anticipates EPA approval of the mitigation plan. But some policymakers
remain resistant to retail introduction of E15: The House Committee on Science, Space, and Technology recently approved a measure that would require EPA to seek an independent scientific analysis of E15 effects. RFA called the proposal “a perfect example of Congress trying to address a problem that doesn’t exist.” Grady Chronister, whose Chronister Oil Co. operates Central Illinois’ Qik-n-EZ retail fuel-and-food chain, is anxious to supply E15 “as soon as possible” — albeit, “once all the environmental and other regulations and the legal requirements are met, and we’re sure that it’s right.” Beyond liability and logistics issues, he noted “the consumer will dictate the demand for this product in the long run.” “We feel it’s a quality product, and it will benefit the consumer,” Chronister told FarmWeek.
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, February 27, 2012
Quick Takes FTA ACTIVE MARCH 15 — U.S. Trade Representative Ron Kirk announced last week the U.S.-Korea free trade agreement would take effect March 15. That announcement followed completion over the Presidents Day weekend of work by the U.S. and Korea to review each other’s laws and regulations related to the the agreement. The U.S. exchanged diplomatic notes with Korea in which each side confirmed that it had completed legal requirements and procedures for the agreement to be put into force. On March 15, nearly two-thirds of U.S. exports of ag products to Korea will become duty-free, including wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine. VOTER REGISTRATION THROUGH MARCH 13 — Illinois voters have until March 13 to register to vote in the March 20 primary election. This year, grace-period voting allows state residents to register to vote or change their voting address through March 13 at local election authority offices. Anyone who registers under that provision must also vote at that time, according to the Illinois State Board of Elections. To check the status of voting eligibility, go online to {www.elections.il.gov}. DON’T FORGET THOSE FARM CONNECTIONS — Several speakers and moderators highlighted their farm backgrounds and ties to Illinois during an agricultural communications symposium at the University of Illinois. Farm notables included Jan Slater, interim dean of the U of I College of Media, who proudly stated she was a Nebraska farm girl and was wearing her FFA pin. Slater also quoted parts of the 4-H pledge (she was a member) and the FFA creed during her remarks. Commodity representative honors went to think-tank planner Johanna Nesseth Tuttle (see story on page 7) who shared that she was a former state pork queen. Ken Cook of the Environmental Working Group noted he grew up in Missouri, but joked that he always wanted to be from Illinois.
GOVERNMENT Lower prices expected
USDA sees more corn acres
BY DANIEL GRANT FarmWeek
Crop prices this year are expected to moderate as USDA last week projected U.S. farmers will boost plantings and production of corn and wheat. USDA at its Ag Outlook Forum in Arlington, Va., projected U.S. farmers this year will plant 94 million acres of corn (up 2.1 percent from last year), 75 million acres of soybeans (unchanged from last year), and 58 million acres of wheat (up 3.5 percent from last year). If realized, corn plantings this spring would be the largest since 1944. “We’ve seen an incredible response (from farmers around the world) to recordhigh crop prices,” said Joe Glauber, USDA chief economist. “We expect crop prices will be lower” this year compared to 2011 as a result of increased production. USDA projected crop prices
this year will average $5 per bushel for corn (down 20 percent from last year), $11.50 for soybeans (down 1.7 percent), and $6.30 for wheat (down 13 percent). The lower price projections assume farmers this year are
FarmWeekNow.com Listen to Dan Grant’s interview with USDA chief economist Joe Glauber at FarmWeekNow.com.
able to boost crop plantings and yields will return to near trend-line levels after spring flooding and a summer drought trimmed crop production last year. The drop in corn prices also is based on USDA’s forecast for demand from the ethanol industry to flatten. Glauber noted U.S. ethanol production was at capacity in December but has since declined about 4 percent due in part to tightening margins. Livestock margins, on the
other hand, were projected to increase due to lower feed costs and strong meat prices. Cattle prices were projected to increase 9 percent this year. “(Increased crop production) will help moderate feed prices,” Glauber said. “We expect livestock margins will improve by the fourth quarter.” The production and price projections are, of course, sensitive to weather this growing season, he said. “We had a devastating drought in much of the Southern Plains last year,” Glauber said. “Unfortunately, the dry conditions persist in much of that region. “So it’s very premature to conclude much about yield prospects in 2012,” he continued. “Weather is a key concern this year.” USDA also forecast a 3.9 percent increase in total farm expenses this year.
President unveils energy plan; Dinneen touts ethanol gains BY MARTIN ROSS FarmWeek
As President Obama touted what he called an “all-of-theabove” strategy for reducing foreign oil use, Renewable Fuels Association CEO Bob Dinneen noted ethanol already has claimed a key victory in the “battle for the barrels.” Last week in Miami, Obama detailed a plan intended to expand energy sources “designed in America and produced by American workers.” Obama proposes opening 75 percent of potential U.S. offshore oil and natural gas re-
sources through 2017, and proposed fuel efficiency-greenhouse gas emission standards for 2014-2018 heavy-duty trucks, vans, and buses are aimed at cutting annual oil consumption by 500 million barrels. Roughly 230 miles away in Orlando, Dinneen noted ethanol overall has accounted for 81 percent of new domestic fuel production since 2005. Since then, the ethanol industry has added a net 838 million barrels of new fuel to the energy supply, he stressed at the National Ethanol Conference. “In 2005, the U.S. was 60
percent dependent on imported oil,” Dinneen told FarmWeek. “Here we are, just seven years later, and we are only 45 percent dependent on foreign oil. “Eighty-one percent of the increased domestic energy supply we have seen since 2005 has been domestic, renewable ethanol. “It’s not increased oil and gas production; it’s not Marcellus shale (for gas extraction) — it’s ethanol that has made the difference. It is our industry that is driving this nation to a greater sense of energy security.”
tion, health care, public safety, and government performance. The plan also will find opportunities for the best available broadband technology and high-speed Internet throughout Illinois. The survey is open to the general public and may be accessed on the Broadband Illinois website. Results of the March survey will be included in
the statewide broadband plan. To take the survey, go online to {www.broadbandillinois.org}, click the “Research” tab, and then click the “High Speed Internet Usage Study” link. For more information, contact broadbandoffice@broadbandillinois.org or go online to {http: broadbandillinois.org/research.html}.
Public’s input sought on broadband survey
(ISSN0197-6680) Vol. 40 No. 9
February 27, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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Illinois residents may help shape the state’s future highspeed Internet plan, including that for agriculture, by participating in a survey. The statewide survey is being conducted by Broadband Illinois, also known as the Partnership for a Connected Illinois (PCI). PCI is working with the Illinois Institute for Rural Affairs and Strategic Network Groups to develop a plan that will position Illinois as a nationwide leader in job creation, economic growth, enhanced medical care, and investment in education. Ultimately, Broadband Illinois will develop broadband plans in agriculture, energy and the environment, economic development, educa-
U of I crop researchers to give webinars University of Illinois crop science researchers will present a series of one-hour webinars at the noon hour for three Wednesdays starting this Wednesday. On Wednesday, Carl Bradley, plant pathologist, will discuss results from foliar fungicide trials and the keys to making profitable fungicide applications to corn, based on disease risk and scouting observations. Contact your U of I Extension office to learn if it will host a group webinar.
FarmWeek Page 3 Monday, February 27, 2012
government
Acting agriculture director hits ground running BY KAY SHIPMAN FarmWeek
Bob Flider didn’t have much of a chance to ease into his post as the state’s newest acting agency director. Precisely seven days after Gov. Pat Quinn named Flider to be the state’s next agriculture director, a new budget hit the fan. Bob Flider For fiscal year 2013, the governor has proposed to cut general revenue funding for the Illinois Department of Agriculture (IDOA) by 5.5 percent. “As people know, the challenges the state faces are enormous,” Flider told FarmWeek a day before Quinn released his budget and proposed reductions. Flider said his goal will be for IDOA to continue providing quality services and programs to Illinois citizens and to find ways for the agency to be more cost effective. “Most importantly, we will not put ourselves in a situation where we can’t assure the safety of our food,” he said. Flider acknowledged the general public and many lawmakers probably do not realize the many ways that IDOA inspections and programs touch their lives. He emphasized the importance of
IDOA having professionals in place to do those jobs (such as food inspections) and praised the caliber of the experienced employees who do their jobs daily. Flider’s former colleagues in the Capitol can expect to see and hear from him in the
days ahead. “My goal is to educate elected officials and lawmakers as much as we can about the Department of Agriculture so they understand how important it is,” said the former state representative. “It’s important that they know I’m accessible,” he added.
Flider served in the House from 2003 through 2011. During his tenure, he served on several house committees and held leadership positions on electric generation and renewable energy committees. Flider said he also will use
Governor seeks to close Centralia animal lab Gov. Pat Quinn last week proposed to close the state’s animal disease laboratory in Centralia and to cut general revenue funding for the Illinois Department of Agriculture (IDOA) by $1.6 million (5.5 percent). That would leave the state with one animal lab — in Galesburg. That facility already administers more than 450,000 tests each year. Quinn’s budget proposal includes a reduction of about 20 IDOA employees. Information was not available on which divisions may see a reduction or how many of those positions currently may be vacant. Soil and Water Conservation Districts would receive a $300,000 reduction, about 10.8 percent, in general revenue funding; however, the Partners for Conservation funding is to receive a $275,800 increase under the governor’s proposal. The Partners funding is used for costshare dollars, but also may be spent for some district operations or administrative costs. Several budget lines that support county
fairs are proposed to remain flat at current budget levels as is the $328,000 budget for the University of Illinois Dixon Springs Agricultural Center at Simpson. However, the U of I Extension would see a reduction in funding that comes from IDOA’s budget. Cook County Extension would see a $300,000 reduction and another overall Extension line item would be reduced by $800,000. For the first time in several years, state funding has been proposed for a statewide program to help disabled farmers and their families. The governor’s budget includes $200,000 for AgrAbility Unlimited. The Department of Natural Resources (DNR) is one of the agencies targeted for a large funding reduction. The governor’s budget would cut general revenue funding for DNR by 9.4 percent. In addition to the state funding cut, the agency also would see a 27.1 percent reduction in federal funding. — Kay Shipman
his public service experience to work with fellow agency directors. “I want to build partnerships so we can leverage the talents and resources of other agencies to promote our (ag and food) products and other resources — to showcase Illinois product development,” he said. His goals to help agriculture include development of rural Illinois “so the next generation has the technology available” as do other parts of the state. “Broadband not only will help agriculture but also will help rural families, health care, and education,” Flider continued. He understands the challenges facing rural residents’ access to highspeed Internet through his work with the Partnership for a Connected Illinois. In addition to his budget baptism by fire, Flider also was immersed initially in news media controversy over whether his appointment was tied to his support for Quinn’s income tax increase. “I can’t think of a chief executive officer who would so cavalierly give someone a job,” Flider said. “I was invited to apply and interviewed several times and had to make my case that I would work on behalf of the governor to achieve his goals. “My focus is to do the best job I can as ag director,” he added. His appointment still must be approved by the Senate.
Referendum March 28
Corn growers view checkoff hike as investment in future
BY DANIEL GRANT FarmWeek
A small boost in the state’s corn checkoff rate (one-quarter of a cent) could have a significant impact on farmers’ ability to grow, market, transport, and find new uses for the state’s top crop, according to supporters of the increase. The Illinois Department of Agriculture (IDOA) last week hosted a hearing to gauge interest in raising the state corn checkoff rate from 3/8 of a cent per bushel to 5/8 of a cent per bushel. After hearing testimony from a handful of farmers, all of whom supported raising the checkoff, IDOA announced it will hold a referendum March 28. The increase in the checkoff, which was requested by the Illinois Corn Marketing Board (ICMB), would generate about $4 million per year statewide, based on an average yield of 160 bushels per acre, according to Jeff Scates, a farmer from Gallatin County and president of the Illinois Corn
Growers Association (ICGA). kets up and maintaining a viable indusThe additional money would help try,” Scates said. ICMB cover a $3.3 billion budget He recently traveled to Panama for a shortfall last year and expand programs U.S. Grains Council meeting and toured in the future. the expansion of the Pana“We have to invest ma Canal. He believes simin ourselves if we ilar infrastructure ‘ I ’ ve s e e n f i r s t - improvements must be want to be successful,” Terry Davis, a hand the impact made domestically so U.S. Warren County the checkoff has farmers can maintain a farmer and board competitive advantage in h a d i n k e e p i n g the world market. member of ethanol our mar kets up producer Big River “It’s time to get our Resources, said at the and maintaining a locks and dams (on the hearing. Illinois and Mississippi viable industry.’ Rivers) updated,” he said. Program areas of Meanwhile, the U.S. ag emphasis for corn industry is susceptible to growers include — Jeff Scates increased regulations and infrastructure ICGA president activist attacks that could improvements, supimpede farmers’ ability to porting and expanding the ethanol and livestock industries, produce and market their products, according to the ICGA president. building and improving the image of “We’ve got to counter the negative farmers, and protecting the ag industry myths with good information,” Scates from excessive regulations. said. “I’ve seen firsthand the impact the Henry Kallal, a farmer from Jersey checkoff has had in keeping our mar-
County and past Illinois Farm Bureau board member, testified that farmers must continue to invest in the industry to keep it sustainable. “The extra checkoff dollars are needed to make sure my grandchildren and future generations can continue farming,” Kallal said. Producers actively engaged in the production and marketing of corn are eligible to vote. Ballots can be cast at local Extension offices. Requests for absentee ballots must be submitted in writing to IDOA at: Director, Illinois Department of Agriculture, Bureau of Marketing and Promotions, State Fairgrounds, P.O. Box 19281, Springfield, IL, 62794-9281. If approved, the increase in the corn checkoff would be the second raise since the Illinois Corn Marketing Act was established by growers in 1982. The only increase in the corn checkoff to date was approved by growers in 2007, taking the rate from 1/4 of a cent per bushel to the current 3/8 of a cent.
FarmWeek Page 4 Monday, February 27, 2012
risk maNagemeNt
Insurance savings opportunities abound in ’12 BY MARTIN ROSS FarmWeek
Illinois Farm Bureau risk management specialist Doug Yoder sees potential for some Illinois crop insurance coverage levels to “take a dip” this season as farmers weigh available crop guarantees and savings in premiums. But the opportunities for savings are promising this season. Beyond slightly lower crop prices, reduced market volatility, and adjustments in nationwide rates, farmers can use a new option to upgrade their yield guarantees and, potentially, revenue protections. “Illinois farmers are protecting themselves better: They’re not just pocketing savings; they’re investing in higher coverage levels,” Yoder said. March 15 is sales closing date for spring crop insurance. Corn and soybean growers have a choice of Yield Protection (YP) insurance to cover production losses, Revenue Protection (RP) coverage to protect against both production and prices losses, and county-level Group Risk Plan (GRP) and Group Risk Income Protection (GRIP) policies. USDA is slated by March 3 to announce February average corn and soybean prices used to calculate spring crop insurance guarantees. Last week, those averages were at $5.71 and $12.44, respectively — the second highest February corn average and third highest soybean average after last year’s records. If final numbers track those averages, premiums should drop slightly, Yoder said. In addition, USDA will release its “volatility factor”
Crop insurance webinar available An Illinois Farm Bureau “webinar” focuses on the several key enhancements to the federal crop insurance program that are new in 2012, including the new Trend Adjusted-Actual Production History (TAAPH) option available for corn and soybeans in most Illinois counties. IFB risk management specialist Doug Yoder’s remarks and accompanying PowerPoint fully describe the new option along with potential ways to maximize its advantage. Also covered in the webinar is the impact of the re-rating process of crop insurance premiums in Illinois. The presentation includes a map with details on how individual county rates are impacted. To view the webinar, visit {www.ilfb.org} and select the presentation in the “Quick Picks” box in the upper right hand corner of the website. Meanwhile, Country Financial agents are using Profit Pro, a tool that helps farmers pick their optimal policy type and coverage level. Profit Pro allows a grower to examine how different price and/or yield scenarios can impact various policies at differing coverage levels.
for corn and beans — a calculation of potential seasonal risk designed for insurers, based on price movements over the last five trading days of February. Yoder noted predictions of slightly lower price volatility for the 2012 crop year — another factor in favor of reduced premiums. Finally, most Illinois policyholders should benefit from new corn and soybean rate reductions based on new USDA Risk Management Agency (RMA) “loss ratio” calculations weighing annual claims against total premiums paid by growers. Nineteen mostly southern counties saw no adjustment under the “re-rate,” five saw slight increases, and the rest were granted premium reductions averaging 12 percent. See {www.rma.usda.gov/help/faq /reratingmaps.pdf} for details. Illinois farmers can recoup a measure of any higher premium costs or improve coverage through RMA’s new Trend-Adjusted-Actual Production History (TA-APH) option. Eligible producers will have the option of adjusting their APH to better reflect more recent county yield trends — a higher APH gener-
ally translates into a higher guarantee. Country Financial crop insurance coordinator Bob Dewey suggested many farmers will welcome TA-APH because they feel their current APH does not reflect their yield potential “due to today’s improved seed varieties and management practices.” The new option is approved for corn in all counties except Cook, DuPage, and Hardin (those counties did not have adequate National Agricultural Statistics Service yield data for adjustments in the
FarmWeekNow.com Learn more about your crop insurance options in 2012 at FarmWeekNow.com.
first year of the option), while all Illinois commodity soybean growers are eligible. TA-APH enables farmers to narrow their yield “gap,” the difference between their traditional APH “and what they expect to produce this year,” Yoder related. “There are two ways producers can look at using this to their advantage,” he said. “One is simply increasing their guarantee: If APH is adjusted
upward, coverage is greater. Though this year’s prices are slightly lower, meaning guarantee dollars are lower, if they adjust APH upward, they may approach similar coverage dollars as they had last year. “Option two is to look for equivalent coverage at lower coverage levels, thus saving premium.” In one Central Illinois example, a grower was able to move from 85 percent coverage to a still-respectable 80 percent guarantee and save $7.43 per acre in premium by adjusting APH. (See chart below for specifics) Individual guarantees may rise “substantially” under TAAPH if producers have provided 10 years of actual production history, said Dewey, who noted farmers need at least one actual yield over the last four years to qualify for APH. TA-APH is not available with GRIP or GRP policies. “This is causing some producers to consider switching to policies that provide protection on an individual farmer’s production and then add the new trend-adjusted option,” Dewey said. Revenue policies (RP) automatically include the higher of either the February or October price guarantee. Policyholders can save premium dollars by buying RP with a “harvest price exclusion” (RP/HE), which offers only a spring price guarantee. Farmers this season should consider “if they want to store a $6 corn crop or sell as much of it as they can,” Yoder said. A grower who uses 85 percent coverage in order to aggressively sell corn ahead of harvest may prefer RP in the
event fall prices rise, while a farmer who plans to sell only 15-25 percent of his crop prior to harvest “really needs a secondary guarantee,” Yoder argued. Dewey suggests RP/HE may be preferable “if a producer feels his greatest risk is a price decline.” The way cumulative acres are protected also factors into potential 2012 savings. Producers can insure their corn and soybean production under three distinct “unit” structures: • Basic units can be separated for the land they own including cash rent or crop share with a landlord for the same crop in one county; • Optional units enable growers to separately insure crops raised in different township sections or under different practices (i.e., irrigated vs. non-irrigated corn); • And “enterprise units” which combine all acres of a single crop within a county into a single unit. Since the 2008 farm bill, enterprise coverage with higher premium subsidies has provided continued savings, Yoder noted. By moving from basic to enterprise, growers may lose farm-by-farm coverage but can “bump up” coverage guarantees and reduce out-ofpocket deductible costs. Enterprise units may not work for growers with one far lower-yielding farm within a county or in some tenant-landlord situations. “We’ll never have a single policy or unit structure or a single coverage level that works for everybody,” Yoder said. “But I have encouraged everyone to at least look at enterprise units, because the savings can be powerful.”
Optimizing the option: TA-APH and insurance savings The table below shows the potential impact of the new Trend-Adjusted-Actual Production History option (TA-APH) for corn in several Illinois counties. To be eligible, you must have at least one actual yield in the past four crop years in your APH database. The example below assumes eligibility and that four or more actual yields exist in the last 12 crop years to receive 100 percent of the adjustment. Other assumptions used include 400 crop acres, non-irrigated practices, and use of policy enterprise units. This analysis used a $6.01 per bushel corn price for the average of December futures during February
and a 0.29 “volatility factor” reflecting market shifts. Both factors will change depending on February 2012 averages to be released this week. There are several different ways to use the TAAPH option: • Increase your guarantee. You can simply compare your regular APH guarantee (column 6 for 85 percent) to your TA-APH guarantee (column 8) along with the difference in premium. • Look for “equivalent coverage” or guarantee at a lower coverage level, thus saving you premium. For example, compare your regular APH guarantee at 85 percent (column 6) to TA-APH guarantee at
80 percent (column 12) by following the red arrow. The guarantee should be similar, but your premiums will be cheaper even though the coverage is comparable. You can compare your 85 percent APH premium in column 7 to your TA-APH at 80 percent in column 13 by following the green arrow. On average, the counties below can actually gain $3 in per-acre guarantee with premium savings averaging $9. Data was generated using the University of Illinois’ farmdoc crop insurance decision tool, which uses Illinois Farm Business Farm Management Association data for each county.
Page 5 Monday, February 27, 2012 FarmWeek
FarmWeek Page 6 Monday, February 27, 2012
government
USDA: ‘Child labor’ revisions still possible BY MARTIN ROSS FarmWeek
Farmers can still weigh in on controversial U.S. Department of Labor (DOL) ag “child labor” proposals, a USDA representative told Illinois Farm Bureau board members. Meeting with IFB directors in Washington, USDA senior adviser Lindsay Daschle acknowledged the “very valid concerns” about the proposal voiced by producers, agribusinesses, and educators in recent months. She noted continued confusion over the way DOL has implemented the existing “parental exemption” for young farm family members. Amid fear that new rules could limit some farm family members from working within an operation or prohibit youth activities within a multi-family partnership or farm corporation, DOL is “re-proposing” exemption provisions. DOL likely will issue the revised proposal on a “springish timeline,” Daschle said. The entire ag child labor proposal should be finalized this summer, she said.
Beyond the parental exemption, IFB opposes proposals that would limit on-farm jobs that could restrict youths under 16 from performing even lowrisk, routine farm tasks. “Just because those pieces weren’t pulled back doesn’t mean there can’t be significant changes in how they were originally composed,” Daschle assured the IFB directors. She sees “a misunderstanding about how farm operations work” among some federal officials, and solicited board input “knowing that there will be
changes.” IFB President Philip Nelson invited USDA and DOL to tour Illinois farms and “truly see what goes on.” Directors cited the complexity of “family farm” issues. Nelson raised concerns about farm family relatives being able to perform chores or youths participating in 4-H livestock projects in conjunction with farmers under DOL proposals. He also said educational opportunities such as FFA’s Supervised Agricultural Experience program potentially
“wouldn’t kick in until about junior year” under the plan. Many urban/suburban parents with ag roots “want their kids to have that experience,” IFB Vice President Rich Guebert Jr. said. In the interest of long-term safety, he deemed hands-on experience crucial in helping youths master potentially risky jobs. Board member Terry Pope suggested DOL consider “parental consent” provisions that would allow children or teens from outside the farm to gain safe work or
educational experience. Purdue University farm safety specialist William Field maintains it’s time to update youth labor rules, but warned current proposed rules pose “significant negative effects.” Field said updated rules should “reflect changes in agricultural production practices and technology since the original rules were adopted more than 45 years ago.” But Nelson said changes such as use of power-takeoff shields actually have made the farm a safer place to work.
HSUS issue elicits varying perceptions An alliance between the Humane Society of the United States (HSUS) and United Egg Producers (UEP) is seen by some on Capitol Hill as an example of ag/activist cooperation, by others as a slippery slope for Illinois animal production. During a February sweep of congressional offices, Illinois Farm Bureau board members urged opposition to proposed animal care standards for layer
hens that could set the stage for tighter regulation of pork and other sectors. U.S. Rep. Kurt Schrader (DOre.) has introduced the Egg Products Inspection Act amendments, which would implement a HSUS-UEP agreement reached last summer. In a recent letter to lawmakers, IFB condemned the “prescriptive, one-size-fits-all mandate.” According to IFB Vice President Rich Guebert Jr., the
move was the latest step in HSUS’ “anti-commercial livestock agenda.” The bill proposes a phased move to mandatory “enriched cage housing” with nearly double the space of conventional cages, for all commercial layers. Industry cost of the move over the next 15 to 17 years is pegged at roughly $4 billion. IFB fears small and midsized producers could not afford that investment. Schrader’s bill also includes egg labeling requirements and air quality standards for hen houses. “It’s not based on good science,” board member Chuck Cawley told one congressional staffer. “It’s not based on good business practices or even good animal care.” The bill pre-empts state laws, including mandatory standards in Michigan and Ohio, while including a special provision that recognizes implementation of California’s existing “Proposition 2” for statewide egg producers in 2015. The HSUS-UEP pact has been characterized by some as a compromise designed to prevent HSUS from pursuing further state animal care ballot initiatives similar to California’s or Ohio’s. The proposal generated concerns among both down-
state and some urban lawmakers visited by IFB directors. U.S. Rep. Jesse Jackson, a Chicago Democrat, said he would vote “based on the needs of (producers) in my district” rather than UEP’s. “Why would we partner with (HSUS)?” Collinsville Republican Rep. John Shimkus challenged. But U.S. Sen. Dick Durbin, a Springfield Democrat, said he was somewhat “surprised” by IFB’s opposition. A national standard “seems reasonable,” said Durbin, who nonetheless indicated he would consider IFB’s concerns. At the same time, he noted Oak Brook-based McDonald’s plans to phase out use of sow gestation stalls by the chain’s pork producer/suppliers. McDonald’s responded to growing consumer pressure, Durbin said. Last week, Bon Appetit Management Co., a major food service company that supplies universities, corporations, and other venues in 31 states, followed suit with a similar prohibition on both gestation stalls and eggs produced using layer battery cages. “Once these big users start using these standards, I don’t know that anyone can escape them,” Durbin warned. — Martin Ross
Small fruit, strawberry schools set The 2012 Illinois Small Fruit and Strawberry Schools will be March 6 and 7 at the Holiday Inn in Mt. Vernon. The pre-registration deadline is Thursday. Specialists from the universities of Illinois and Arkansas and industry leaders will present educational sessions on growing and marketing small fruit crops and strawberries in the Midwest. On March 6, the program will run from 9:30 a.m. to 5:15 p.m. The following day, the hours will be 8:30 a.m. to 4:15 p.m. In addition to the educational sessions, both days will include a trade show with vendors offering products, supplies, and services. The pre-registration fee is $35 per farm family and includes the sessions and a copy of the 2012 Midwest Commercial Small Fruit and Grape Spray Guide. Registration forms must be postmarked March 1. After that date, the fee will increase to $40 per family. For more information, contact University of Illinois specialist Jeff Kindhart at 618-695-2441 or e-mail jkindhar@illinois.edu.
Page 7 Monday, February 27, 2012 FarmWeek
Global Issues
Ag leaders: Technology vital to boosting food production BY DANIEL GRANT FarmWeek
A panel of seven former secretaries of agriculture last week at the USDA Ag Outlook Forum offered numerous opinions and ideas regarding the challenges and opportunities of feeding a growing world population. But one common idea generally shared by the panel, which consisted of former ag secretaries John Block (198186), Clayton Yeutter (1989-91), Mike Espy (1993-94), Dan Glickman (1995-2001), Ann Veneman (2001-05), Mike Johanns (2005-08), and Ed Schafer (2008-09), is the need
for technological improvements to boost production. “We have critics who criticize modern commercial agriculture,” said Block, a former Illinois farmer who still has a farm in the state. “But we’re not going to feed the world without commercial ag and new technology.” Technology already has helped farmers increase crop and livestock production. And many are doing so with the same or fewer inputs than in the past. But one of about every 12 people in the world still is malnourished, according to the United Nations.
Global trends will challenge agriculture BY KAY SHIPMAN FarmWeek
The production of food never has been so important, so misunderstood, and so assailed, the director of a global food security project told participants of the first University of Illinois ag communications symposium. Johanna Nesseth Tuttle with the Center for Strategic and International Studies outlined seven important trends the think tank, based in Washington, D.C., believes will influence the world in 2030 and beyond. One trend is that population growth and changes will challenge the world’s food production and its resources. Startling changes will define the populations of developed and developing nations, Tuttle said. Developing nations will have larger, younger populations, while major developed countries will have older populations and stagnant, even declining, population growth. However, the U.S. population will continue to grow because of immigration, she noted. More of the world’s population increasingly will live in urban areas. By the year 2050, an estimated 70 percent of the world’s population will live in urban areas, which is the equivalent of cramming today’s world population into cities, Tuttle explained. Natural resource management will be critical. “I’ve heard people say, ‘Reduce consumption.’ But that is not the answer,” Tuttle said. The world will need to find or secure 30 percent more water by 2030 to meet global demand. Technology development, be it telecommunications or biotechnology, holds great promise for the world’s chal-
lenges. “We need to think about distributing information to farmers in all parts of the world,” she said. The rapid development and dissemination of information is creating gaps among countries and challenging policy makers and others to keep pace, Tuttle noted. Only 2 billion of the world’s 7 billion people have access to the Internet, according to Tuttle. Large parts of South America, Africa, and Asia are without service. On the other hand, individuals with Internet access are challenged by a constant influx of information. “College is (no longer just) a four-year endeavor, but constant growing and learning to keep up with new information,” Tuttle said. The world’s economy has become more interconnected, but Asian nations will increase trade with each other. Debt is driving the economies of many developed countries — countries that not only face debt crisis but also must deal with pensions of aging populations, she said. Security needs and challenges have changed to include physical, cyber, and health security, Tuttle said. “We have state vs. state security competition around the world,” she added. Tuttle focused on governance as her seventh important trend. She defined governance as “the difference between how we think the world works and how it works.” Multilateral institutions, such as the North Atlantic Treaty Organization (NATO), will keep working and keep nations involved; however, Tuttle forecasts decreased global cooperation and more regionalism in the future.
“The food isn’t in the right places,” Schafer said. “We (in the U.S.) have an opportunity to provide food and expertise to increase food supplies.” Johanns, who currently serves in the U.S. Senate, said food security is a matter of national security. “If you don’t believe me, look at parts of the world that don’t have enough food. (People in those areas) live in constant chaos.” Many food-deficient areas have been slower to adopt new farming practices and technology. There also are trade barriers that limit food sales to some regions. “We have to get the facts out (about technological improvements in farming),” Yeutter said. “There is too much emotion and not enough facts.” Johanns said increased investment in research is a key component to boosting ag production. “There are too many people, with this abundance (of food) in the U.S., going hungry,” he said.
Former ag secretaries Dan Glickman (1995-2001), left, and John Block (1981-1986), center, discuss the state of the ag industry with Graeme Goodsir, a meat industry consultant, last week at the USDA Ag Outlook Forum in Arlington, Va. USDA this year is celebrating its 150th anniversary and hosted seven former secretaries (Block, Glickman, Mike Johanns, Mike Espy, Ed Schafer, Ann Veneman, and Clayton Yeutter) at the forum to commemorate the milestone. (Photo by Daniel Grant)
Current Ag Secretary Tom Vilsack said President Obama recently called for a 23 percent increase in funding for competitive research programs. “That’s one area the budget must grow (despite the mounting deficit) if we’re going to meet the needs of the future,”
Vilsack said. Veneman noted issues with the global water supply also must be addressed to boost food production.
FarmWeek Page 8 Monday, February 27, 2012
YOung FArmErs
Vilsack: Youth movement key to revitalizing rural America BY DANIEL GRANT FarmWeek
This year marks the 150th anniversary of USDA, which was founded by Abraham Lincoln in 1862. But rather than focus on the agency’s numerous accomplishments the past century and a half, Ag Secretary Tom Vilsack in his keynote address last week at the USDA Ag Outlook Forum in Arlington, Va., turned much of his attention to the future of agriculture and rural America. “All of us need to pay attention to the future of agriculture in America,” Vilsack said. “America will need more farmers.” Agriculture since 1980 has been the second-most productive sector of the economy, according to the secretary. With the average age of U.S. farmers approaching 60 years, Vilsack told an audience of more than 2,000 that it is more
important than ever to retain and attract young and beginning farmers to the industry. “As we shape the next farm bill, we need to make a commitment to the next generation of farmers,” the ag secretary said. “We need to recognize the credit and risk management needs of new farmers.” About 21 percent of U.S. farmers currently is classified as beginning farmers (those with 10 years or less experience in the industry). But beginning farmers receive only about 14 percent of government payments, according to Mary Ahearn, economist with USDA’s Economic Research Service. “Beginning farmers generally have smaller operations,” Ahearn said. “The challenge remains, where to get the farmland.” Vilsack called for estate and income tax reforms that will improve the process of transferring farmland from one generation to the next. “We currently have a land-lock that needs to be addressed,” he said.
USDA recently attempted to ease the situation by extending a loan guarantee program to help beginning farmers purchase land. He also believes the U.S. should continue to expand the production of clean and renewable fuel and energy sources, which would help boost many rural economies. The U.S. the past three years reduced its dependency on foreign oil from 60 percent to less than 50 percent, Vilsack said.
Jason Henderson, vice president of the Federal Reserve Bank of Kansas City, predicted commodity-dependent economies near-term will continue to prosper. “But once you get beyond that, the rural economy is struggling,” Henderson said. The population of rural America the past decade declined by about 10 percent, he noted. “Rural America is in a farm boom,” he said. “But we need to do a better job
promoting the opportunities.” In particular, Henderson believes rural America needs infrastructure improvements and a focus on education to retain young people. “The challenge is how do you get skilled workers in rural America,” he said. The national unemployment rate is just 5 percent for college graduates but a whopping 17 percent for those without a high school diploma, Henderson added.
Illinois couple win national young farmer honors Andrew and Karlie Bowman of Oneida in Knox County recently were named National Outstanding Young Farmers by the Outstanding Young Farmers of America Fraternity. The Bowmans, Knox County Farm Bureau members, and three other national winners were selected from 10 finalists nationwide. Candidates were judged on their agricultural careers, soil and water conservation practices, and civic con-
tributions. Andrew bought farmland while studying at the University of Illinois. He farmers with his father, works at the Karlie Bowman family’s crop insurance agency, and also owns his own crop scouting business. Karlie works as a media manager and also handles publicity for the farm and family
ag businesses. The Bowmans received a savings bond from John Deere, which sponsors the competition, and Andrew Bowman an opportunity to travel to Washington, D.C., next year during National Ag Week. The award program is supported by the U.S. Jaycees and the National Association of County Agricultural Agents.
Kaskaskia Watershed group to hear river erosion studies The Kaskaskia Watershed Association Inc. will hear about erosion studies done on the Kaskaskia River when it hosts a meeting from 2 to 5 p.m. Monday, March 5, in the Mariner’s Village Convention Center, Carlyle. The U.S. Army Corps of Engineers will present summaries of three separate river erosion studies covering the river’s headwaters from near Champaign to Fayetteville in St. Clair County. Mike Rodgers, project manager for the Corps’ River Regulating Works Project, will discuss the river from the headwaters to the upper end of Lake Shelbyville. The study
covers the effects of land use, channelization, and floodplain connections on the river channel. Rob Davinroy, chief of the river engineering section, will present a second study covering the river from the Lake Shelbyville Dam to the upper end of Carlyle Lake. This study also includes an evaluation of the effect of Lake Shelbyville water releases. Dave Gordon, hydraulic design section chief, will discuss a third study of the river from the Carlyle Lake Dam to Fayetteville. This study explored the effects of the headcutting, channel degradation, and bank erosion.
DATEBOOK Feb. 28 On-the-Road seminar, 9 a.m. Fayette County Farm Bureau, Vandalia. March 2-4 Illinois Horse Fair, Illinois State Fairgrounds, Springfield. March 5 On-the-Road seminar, 5:30 p.m. Wabash County Farm Bureau, Mount Carmel, 618-262-5865. March 6 Rural listening session with
Lt. Gov. Sheila Simon, 4 to 6 p.m., Sheraton Hotel and Conference Center, Peoria. March 7 On-the-Road seminar, 10 a.m. Jo Daviess County Farm Bureau, Elizabeth. March 8 Illinois Forage Institute, 9 a.m. to 4 p.m., University of Illinois Orr Research & Demonstration Center/John Wood Community College, Perry. To register call 217357-2150.
Page 9 Monday, February 27, 2012 FarmWeek
from the counties
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DAMS — A Viewpoint luncheon meeting will be at 11:30 a.m. Monday, March 5, at Sprout’s Inn Restaurant, Quincy. State Sen. John Sullivan (D-Rushville) and state Rep. Jil Tracy (R-Mt. Sterling) will be the speakers. Call the Farm Bureau office at 222-7305 for reservations or more information. • The Adams County Farm Bureau Foundation will award five $1,000 scholarships. Applications are available at the Farm Bureau office. UREAU — A farmers’ market vendor meeting will be at 9 a.m. Tuesday at the Farm Bureau office. Those interested in selling at the upcoming farmers’ markets are invited. Rich and Dar Knipe will present information on Market Maker, a web-based resource that includes information on connecting farmers, processors, and consumers. Call the Farm Bureau office for more information. OLES — Foundation scholarships are available to high school seniors and college students who are majoring in agriculture or an ag-related field of study. Applications are available at the Farm Bureau office or online at {colescfb@consolidated.net}. Deadline to return applications to the Farm Bureau office is 4 p.m. Friday, March 23. • New membership discounts on parts and service from Pilson Auto Center and a 10 percent discount on Wednesdays at My Store are available. Call the Farm Bureau office at 345-3276 for more information.• The Farm Mall Show will be Friday through Sunday at the Cross County Mall, Mattoon. Farm equipment and ag businesses will be promoted. OOK — Farm Bureau has printed Farmer Transportation Quick Reference guides, which offers farmers basics on implements of husbandry farm to market agricultural transportation, medical cards, and weight restrictions. Call the Farm Bureau office at 708-354-3276 for a free copy. • The Commodities/Marketing Team will sponsor a grant program designed to provide community gardens with items such as plants, seeds, compost, and fencing. Four $300 Cookfresh grants are available. Deadline to return applications is Tuesday. Call the Farm Bureau office at 708-354-3276 for more information. • Cook County Farm Bureau scholarship applications are available. Deadline to return is March 9. Call the Farm Bureau office at 708-354-3276 or go online at {www.cookcfb.org} for more information. FFINGHAM — The annual meeting will be at 6 p.m. Monday, March 12, at the
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Teutopolis Knights of Columbus building. A barbecue pork loin and fried chicken dinner will be served following the nomination of directors. Thunder Road, a local country band, will provide the entertainment. Cost is $3. Call the Farm Bureau office at 217-342-2103 by Monday, March 5, for reservations or more information. ACKSON — A legislative roundtable meeting will be at 8:30 a.m. Monday, March 5, at Southern FS, Marion. Breakfast will be served. Call the Farm Bureau office at 618-684-3129 by Friday for reservations or more information. ASALLE — The LaSalle County Farm Bureau Foundation has two $1,000 scholarships available. A high school senior and a college student who are enrolled in a agrelated field of study may apply. The application is on the website {www.lasallecfb.org}, or call the Farm Bureau office for more information. • The LaSalle County Stockman’s Association will sponsor March Thaw III at 6 p.m. Wednesday, March 7, at Pitstick Pavilion, Ottawa. Dinner will be served. Walt Hackney and Travis Meteer will be the speaker. Call Terry Patyk at 815-4881372 for reservations or more information. EE — An “Easements and Your Farmâ€? meeting will be at 7 p.m. Wednesday, March 21, at the Farm Bureau office. Landowners will learn about easement agreements related to public utility or pipeline projects crossing their land and if there is an existing easement agreement on their property. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net by Friday, March 16, for reservations or more information. ACON — Farm Bureau will sponsor an Ag Celebration breakfast at 7 a.m. Tuesday, March 6, at the Pride of the Prairie Building, Macon County Fairgrounds. Jeff Nalley, Cromwell Ag Radio Network broadcaster, will be the speaker. Call the Farm Bureau office at 877-2436 for reservations or more information. • Farm Bureau will sponsor a “Know your Legislative Districtsâ€? meeting at 6 p.m. Tuesday, March 6, at the Farm Bureau auditorium. New boundary lines for county board, state, and federal legislative districts will be discussed. Call the Farm Bureau office at 877-2436 for more information. ARION — Farm Bureau will sponsor a legislative breakfast at 7:30 a.m. Monday, March 5, at the Farm Bureau office. State Sen. John O. Jones (R-Mt. Vernon) and state Rep. John Cavaletto (RSalem) will attend. Call the Farm Bureau office at 618-548-
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2100 for more information. • Farm Bureau and the Salem Township Hospital will sponsor a wellness seminar Wednesday, March 7, at the Farm Bureau office. Cost to members for the following tests is: blood profile, $35; PSA test, $25; cholinesterase, $65; and mammogram, $84. Call between March 10-17 for a mammogram appointment. Call the Farm Bureau office at 618-548-2100 for an appointment or more information. ONROE — The Monroe County Farm Bureau Foundation high school senior scholarship applications are due Thursday. Applicants must be pursuing an agricultural-related field of study. Call the Farm Bureau office at 9396197 or e-mail mcfarm@htc.net for an application. • Valmeyer School District residents are invited to attend informational meetings at 7 p.m. Tuesday and Tuesday, March 13, at the Valmeyer School. Proposed school propositions that will appear on the March 20 ballot will be discussed. EORIA — A crops conference will be from 8:30 a.m. to 2:45 p.m. Monday, March 5, at the Illinois Central College East Peoria campus. Chuck Collins, meteorologist; Pete Manhart, Bates Commodities; and Mike Plumer, University of Illinois, will be the speakers. Cost is $10, which includes lunch. The first 30 members who register through the Farm Bureau office will have their fee paid. Call 6867070 for reservations or more information. • A market seminar will be at 8 a.m. Wednesday, March 7, at Exposition Gardens, Peoria. John Roach, agribusiness consultant, will be the speaker. Call the Farm Bureau office at 686-7070 for reservations or more information. • The Prime Timers will meet at 1 p.m. Wednesday, March 7, at the Farm Bureau auditorium. Brian Puetz, Illinois Farm Bureau regional manager, will give a presentation on his recent trip to the Holy Land. Call the Farm Bureau office for more information. OCK ISLAND — A market outlook meeting will be at 6:15 p.m. Wednesday, March 7, at the Moline Viking Club. Mike Schaver, Gold Star FS grain merchandiser, will provide an update. Mike McClellan, Mobile Weather Team Inc., a Washington, Ill.based company specializing in long-range ag weather forecasting, will be the speaker. Cost is $20 if pre-registered or $30 for walk-ins. Call the Farm Bureau office at 309-736-7432 or the Henry County Farm Bureau
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office at 309-937-2411 for reservations or more information. • The Women in Agriculture conference will be from 9 a.m. to 3 p.m. Friday, March 23, at the iWireless Center, Moline. Michele Payn Knoper, {CauseMatters.com}, will be the keynote speaker. There will be several breakout sessions and speakers. Cost by Friday is $50, which includes breakfast and a luncheon buffet. Cost is $60 after March 1. Walk-in price will be $75. Call the Farm Bureau office at 309-736-7432 for reservations or more information. • The Rock Island County plat books are available at the Farm Bureau office. Cost is $20. Non-member cost is $30. NION — The Young Leaders will meet at 7 p.m. Thursday at the Farm Bureau office. Those who are between the ages of 18-35 and are interested in agriculture are invited to attend. Call the Farm Bureau office at 618-833-2125 for more information. • A legislative roundtable meeting will be at 8:30 a.m. Monday, March 5, at Southern FS, Marion. Breakfast will be served. Call the Farm Bureau office at 618-833-2125 by Friday for reservations or more information. ERMILION — A Young Leader meeting will be at 7 p.m. Tuesday, March 6, at the Farm Bureau auditorium. Tom Stoddard, Stoddard Ag Services, will be the speaker. He will discuss spring preparations and how the mild winter will affect the upcoming growing season. All Farm Bureau members may attend. Call the Farm Bureau office for more information. • The Marketing Committee will sponsor an ag finances and land values program at 9:30 a.m. Monday, March 12, at the Farm Bureau auditorium. A panel of four bankers and land appraisers will discuss the current financial situation in agri-
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culture as it pertains to loans and land prices. Call the Farm Bureau office for more information. AYNE — The annual meeting will be at 6 p.m. Friday, March 9, at the Cumberland Presbyterian Church, Fairfield. The Young Leader Committee will collect non-perishable food items, as well as offer valet service for a donation. Proceeds will benefit the Harvest for All program. The Roasted Chestnuts will provide the entertainment. Call the Farm Bureau office at 618-8423342 by Friday for reservations or more information. The annual meeting notice is posted on the website {www.waynecfb.com}. • Farm Bureau is sponsoring a program “Land Contracts and Leasesâ€? at 1 p.m. Tuesday, March 6, at the Cumberland Presbyterian Church. Laura Harmon, Illinois Farm Bureau assistant general counsel, will review various leases offered by land companies. Call the Farm Bureau office at 618-842-3342 for reservations or more information. HITESIDE — Whiteside County Farm Bureau Foundation high school senior scholarship applications are due April 3. Applicants must pursue an agriculturalrelated field of study. Call the Farm Bureau office at 815-7722165 or e-mail wcfb@frontier.net for an application.
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“From the counties� items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
Correction A headline on a farm safety story appearing in the Feb. 20 FarmWeek indicating 80 Livingston County farmers participated in a safety breakfast was in error. Farmers from both Livingston and McLean counties attended the meeting.
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FarmWeek Page 10 Monday, February 27, 2012
profitability
Ag exports projected to remain strong this year BY DANIEL GRANT FarmWeek
U.S. ag exports are expected to remain strong this year despite growing concerns of economic instability, particularly in the European Union, and a stronger dollar. USDA last week forecast the value of ag exports this year will reach a total of $131 billion. The estimate is down $1 billion from the November forecast but it still would be the second-highest on record. The record for U.S. ag exports was set last year when U.S. sales to foreign destinations totaled $137.4 billion. This year should be another good one, Joe Glauber, USDA chief economist, said last week
at the USDA Ag Outlook Forum in Arlington, Va. A weaker euro helped strengthen the U.S. dollar in recent months but Glauber believes the value of the dollar this year will remain export-friendly. “We project ag sales will be near the record level of last year,” said Ag Secretary Tom Vilsack. “It bodes well for a strong farm income in 2012.” USDA this month projected 2012 net farm income will total $91.7 billion, down 6.5 percent from last year. This year U.S. exports of grain and feeds were projected to decrease by $3.9 billion, due in part to competition from the Black Sea region. Export sales of oilseeds and
products also were projected to slip this year — by $4.2 billion compared to last year — mostly due to strong early-sea-
son shipments from South America, according to USDA. Meanwhile, U.S. livestock, dairy, and poultry exports this
year were projected to increase by $1.9 billion. The Obama administration and USDA will continue to focus on boosting exports in the future, Vilsack noted. “We intend to expand trade. Producers need markets here and abroad” to be profitable, the ag secretary said. Vilsack pointed to recent trade agreements with Colombia, Panama, and South Korea, Russia’s possible membership in the World Trade Organization, and recent agreements signed by Chinese officials to purchase U.S. soybeans as positive signs for ag trade. U.S. ag exports this year were forecast to produce a trade surplus of $24.5 billion.
Upgrade your coolant to improve performance and profitability BY TOM DREW
Today’s heavy-duty engines demand cooling system protection that goes beyond that offered by conventional coolants formulated for automobiles and light-duty trucks. Higher mileage, heavier loads, and Tom Drew extended service intervals are the reality. Considering that historically
more than 40 percent of a diesel engine’s downtime can be attributed to cooling system problems, it’s important that the coolant you select is formulated specifically for the unique requirements of heavyduty engines. Using antifreeze as your coolant year-round is important for several reasons. As the name suggests, antifreeze contains glycol, which provides freeze protection. Also, antifreeze provides a stable environment for gaskets and seals, which tend to shrink
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head $31.00-$61.00 $80.27 no longer reported This Week 101,158 *Eastern Corn Belt prices picked up at seller’s farm
Weighted Ave. Price $44.23 $80.27 by USDA Last Week 105,297
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $83.02 $78.47 $61.43 $58.07
Change 4.55 3.37
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week n/a 125.00 n/a n/a 125.25 n/a
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 $156.50 155.93 0.57
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-155 lbs. for 149.03-185 $/cwt. (wtd. ave. 155.58); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 02-17-12 38.4 22.2 34.8 02-09-12 39.1 18.9 29.2 Last year 42.3 31.2 39.3 Season total 833.4 715.1 776.0 Previous season total 1102.0 842.9 779.0 USDA projected total 1275 975 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
when using straight water as a coolant and can lead to leakage. Common causes of coolant system downtime in heavyduty engines include cavitation, or pitting, of wet sleeve cylinder liners, corrosion of system components, and poor heat transfer due to scale build-up. If the coolant in use has excessive inhibitor levels, phosphate and silicate dropout can occur, leading to premature water pump failure, radiator blockage, and/or heater core problems. There are two types of heavy-duty coolants that work overtime to help minimize these threats to equipment
uptime. They both feature heavy-duty coolant technologies recommended by the original equipment manufacturer. *d Fully formulated coolant/antifreeze, precharged with supplemental coolant additive (SCA). *d Organic acid technology (OAT) extended-life coolant. For years, heavy-duty operators were limited to using low silicate automotive antifreeze that required the addition of a separate SCA. Fully formulated coolant/antifreeze eliminates mixing errors, improves convenience, and saves time by simplifying maintenance. OAT delivers cooling sys-
tem protection without the use of SCA. Organic acid inhibitors provide protection from cavitation and corrosion. It will save you time and money, because it eliminates the need for SCA. It is recommended for use in all types of heavy-duty diesel, gasoline, and natural gas engines. Your local FS energy specialist can help you determine the best type of coolant/antifreeze for your heavy-duty engines. Tom Drew is GROWMARK’s lubricant marketing manager. His e-mail address is tdrew@growmark.com.
Specialty crop grants available through IDOA More than $630,000 in specialty crop grants is available through the Illinois Department of Agriculture (IDOA). The application deadline is March 15. The state received the funding through USDA’s Specialty Crop Block Grant Program. “Expanding access to nutritious, homegrown Illinois food is important not only to the health of consumers, but also to the health of our rural economy,” said Bob Flider, acting state agriculture director. USDA defines specialty crops as fruits, vegetables, tree nuts, dried fruits and horticulture, and nursery crops, including floriculture. Proposed projects should do one or more of the following: • Increase child and adult nutrition knowledge and consumption of specialty crops; • Improve efficiency and reduce costs of distribution systems; • Help develop good agricultural, handling, and manufacturing practices and costshare arrangements for fund-
ing audits of such systems for small farmers, packers, and processors; • Invest in specialty crop research, including organic research on conservation and environmental outcomes; • Enhance food safety; • Develop new and improved seed varieties and specialty crops;
• Improve pest and disease control; and • Promote organic and sustainable production practices. Application packets are available online at {www.agr.state.il.us/Grants/ specialtycrops.html} or by contacting Delayne Reeves at 217-524-9129 or by e-mail at delayne.reeves@illinois.gov.
Forage Institute March 8 at Orr Center The Illinois Forage Institute will be March 8 at the University of Illinois Orr Research & Demonstration Center/John Wood Community College, Perry. The program will start at 9 a.m. and conclude at 4 p.m. The event will include commercial exhibits. Topics will include baleage as alternative feed, forage species selection, annual forage plants, pasture fertility, pasture management and evaluation, and an Orr Center research update. The cost is $20 per person for Illinois Forage and Grassland Council members and $25 per person for non-members. The fee covers lunch and presentation handouts. To register, contact the U of I Extension Hancock County, Carthage, at 217-357-2150. On-line registration is available at {https://webs.extension.uiuc.edu/registration/?RegistrationID=6398}. The Forage Institute is sponsored by the Illinois Forage and Grassland Council and John Wood Community College and supported by USDA Natural Resources Conservation Service and U of I Extension.
Page 11 Monday, February 27, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Cents per bu.
ü2011 crop: The Chicago May contract continues to hold key support, keeping the door open for additional strength. Make catch-up sales with May above $6.40. Price another 10 percent if May futures close below $6.32. ü2012 crop: Use rallies above $5.65 on December futures to make catch-up sales. vFundamentals: Downside potential has been limited by an increase in demand for U.S. corn. Recently China has re-entered the market and sourced some purchases from the U.S. The situation in Greece is far from being resolved, but it appears steps are being taken in the right direction and this has allowed the U.S. dollar to soften. Looking ahead, the key report will be the upcoming USDA March planting intentions report. However, at the recently held USDA Outlook Forum, estimated 2012 corn acreage was left unchanged from its baseline projection of 94 million acres.
Soybean Strategy
Corn, wheat shipments holding pace Wheat shipments continue to track slightly above projections, but still lag below the previous year. The trade remains hopeful that demand for U.S. wheat will start to pick up after the Ukraine indicated it would limit wheat exports to 1.7 million metric tons (62.5 million bushels) in the February-July time period because of less-than-desirable conditions this winter. However, both domestic and international supplies of wheat remain ample and competition is going to be tough.
Corn exports continue to track USDA projections, despite a fairly inactive market at the end of 2011. Demand for U.S. corn is starting to demonstrate signs of picking up, as China has recently re-entered the market and made several purchases. However, corn still has to contend with competition from feed wheat, and this likely will keep a lid on demand to a certain degree. Soybean exports, sales, and shipments continue to lag, especially the former. Even though South American crops are shrinking, the South Americans will push supplies into the world pipeline aggressively after harvest. The U.S. could see newcrop business improve as a result of smaller South American crop.
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ü2011 crop: The uptrend in soybeans remains intact on production uncertainty in South America and an increase in demand. Old-crop sales should have been pushed up another 10 percent when May touched $12.85. ü2012 crop: Use rallies to make catch-up sales. If it wasn’t so early, we’d be willing to sell more at these prices. vFundamentals: South American weather appears to be much less threatening with severe heat taken out of forecasts. Although many areas remain severely dry, especially southern Brazil, scattered showers are now in the forecast even for these areas. Actual damage won’t be known for some time — leaving the market to cope with uncertainty for weeks to come. The USDA Forum offered little surprises with projections of U.S. 2012 plantings at 75 million acres, unchanged from 2011.
Wheat Strategy ü2011 crop: The minor trend on Chicago May futures remains lower. May futures could test the $6.28 low. Hold off on making catch-up sales until a low can be established, as a rebound should follow. The carry in futures still pays for commercial storage, making spring hedge-to-arrive contracts the best tool. ü2012 crop: Once a bottom is confir med, the market should experience a mild recovery bounce. Hold off on making catch-
up sales until that time. vFundamentals: The wheat market has little fresh fundamental news to digest. The only current news event was the USDA Outlook Forum, which estimated U.S. all-wheat plantings at 58 million acres, up 3.6 million acres from 2011. If realized, this would cast a bearish tone on wheat going forward. The dry Northern Plains has recently picked up some much-needed moisture, which should help to replenish depleted soil moisture reserves.
FarmWeek Page 12 Monday, February 27, 2012
pERSpEcTIvES
ExplorACES sealed the deal for ACES student For many high school juniors and seniors — and their parents — the task of searching for the perfect college can be daunting. Narrowing it down to one school can seem impossible, and college visits can be time consuming, confusing, and expensive. Luckily AMELIA ExplorACES, MARTENS an annual event at the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES), makes college visits easier and more entertaining. This two-day event provides high school and community college transfer students and their families an opportunity to learn more about the College of ACES, speak with current ACES students and faculty, and view numerous exhibits. Ellen Reeder, now a sophomore in agricultural communications at the U of I, attended the event as a prospective student with her parents. At first, Ellen was not excited about “another college open house.” It was her parents’ idea to attend ExplorACES. “Little did I know that by the end of the day I’d be excited to spend four years at the U of I,” she said.
Her parents, Janet and Dick Gillen of Monmouth, said they knew attending the event would change their daughter’s perspective. “We’d heard a lot of great things about ExplorACES from Ellen’s agriculture teacher and other parents who took their children in previous years,” said Ellen’s mother. “However, she wasn’t as excited about the event as we were.” The change she saw in Ellen that day was incredible, Janet continued. Even though her daughter didn’t know what kind of career she wanted, Janet thought ExplorACES might help her decide. “Ellen was glad to miss a day of school but unenthused to visit yet another college. But by the end of the day, Ellen had found her place,” Janet said. “She was smiling, interacting with students, and excited about the College of ACES. She just didn’t want to admit that her parents were right.” Ellen wasn’t the only person in the family to benefit. Janet said she and her husband were curious about the opportunities ACES could provide. While at ExplorACES, they learned about study-abroad opportunities and extracurricular activities. “I had heard a lot about the professors, learning atmosphere, and scholarships, too,” Janet said.
“It really helped me to see what Ellen might be involved in, where she could live, and what kind of people she would be surrounded by.” “We were grateful to meet so many successful students,” said Reeder’s stepfather, Dick. This year, Reeder has helped plan ExplorACES as one of 15 students on the steering committee. “I believe this is my opportunity to show students what the College of ACES is all about,” she said. “A few years ago, I didn’t believe my parents when they told me what a great opportunity it was to explore my interests and find my place, but they were right.” “Once I came to campus and talked to current students, things just clicked for me,” she said. “I never would have guessed that a few years later I would have such a passion for orange and blue and would be assisting in the planning of ExplorACES.” ExplorACES will be 9 a.m. to 3 p.m. on March 9 and from 10 a.m. to 2 p.m. on March 10. For more information, connect with ExplorACES on Facebook and Twitter or go online to {www.exploraces.org}. Amelia Martens, Orion, is a sophomore in agricultural communications with a concentration in news-editorial at the U of I.
New education initiative needs ag teamwork The state’s ag sector is poised to lead in education reform. First, ag educators and industry leaders must apply to the Illinois State Board of Education and be selected to develop a “learning exchange.” Basically this would be ag-related KAY career education SHIPMAN for elementary through college students. Ag already has most of the pieces in place — and has for many years. Those components may need to be tweaked and described in the latest educational lingo. Ag also faces a potential hurdle from the federal government; more on that later. A learning exchange is comprised of curriculum, career exploration, work-based learning, integrated student organizations, and internships or educational job experiences. Gov. Pat Quinn just launched an education initiative, dubbed Illinois Pathways, to get students ready for college and careers. During the recent launch, I mentally listed existing ag programs and groups that fit the initiative requirements. A pathway curriculum is to integrate applied learning in a
real-world setting. I can’t think of a better description for a vigorous high school ag class and students’ supervised agricultural experience projects. Another need is educational materials to relate industry concepts and potential careers to preschoolers through junior high students. Thanks to Illinois Agriculture in the Classroom, our teachers have access to up-todate materials, curriculum, and other tools. Plus, teachers have a ready local support system through ag literacy coordinators. As part of the initiative, state educators talked about the need for high school student organizations to offer leadership opportunities, learning-based competitions, and career experiences. FFA provides that in spades. Another need is industry involvement so students and teachers have the latest information and technology as well as support and hands-on learning opportunities. This is where Illinois agriculture shines the brightest. For years, Illinois Farm Bureau, the commodity organizations, conservation groups, and many sectors of farming and agribusiness have worked together to help students learn about agriculture and the state’s natural resources. The IAA Foundation raises funds to sup-
port ag literacy and develop educational materials and programs. Two state committees — Illinois Leadership Council for Agriculture Education and the Illinois Committee for Agricultural Education — support ag ed and its relationship to modern industry. The Facilitating Coordination in Agricultural Education works to improve ag education from kindergarten through adult ed. However, proposed federal child labor rules would be a hurdle for 90 percent of Illinois students who study agriculture. Those students don’t live on farms. The Department of Labor’s (DOL) recently expanded exemptions won’t help 90 percent of the state’s ag students. How could non-farm students gain experience if they’re not allow to do it for themselves? That will have to wait for the DOL’s final rules. Illinois ag education partners need to continue working together on the pathway initiative. This state and its students have benefited from an ag learning exchange for many years. This is further proof that agriculture took the right steps even if we know them by different names. Kay Shipman is FarmWeek legislative affairs editor. Her e-mail address is kayship@ilfb.org.
LETTERS TO THE EDITOR
Wind farm good neighbor — farmer Editor: I would like to reply to the guest column regarding wind turbines in the Feb. 6 issue of FarmWeek. This individual has been misinformed. The subsidy from the U.S. Department of Energy is in the form of a tax credit. From 2002-2008, the subsidy for wind and solar energy was $12.2 billion. It is true that wind energy cannot survive without a tax break. Neither can ethanol or biodiesel. The average wind farm recovered its initial cost in seven to 15 years. From June 2008 to August 2009, I attended zoning hearings in Tazewell and Logan counties. The arguments that were presented were similar to those made by the columnist. Aerial sprayers said that they could not spray around the towers. Last summer, I observed an aerial applicator spraying a cornfield containing two towers. They are no trouble to farm around. I farm around three of them.
Prior to signing an agreement with Horizon Wind Energy, I visited in Lee, Bureau, and McLean counties. We have found a wind farm to be a very good neighbor. And the company has been honest and fair with us. In our contract, if the towers are decommissioned, they are to be torn down and all concrete to be removed to a depth of four feet. The tile lines that were cut to put in the underground lines were repaired and re-connected. The company rebuilt nine miles of township roads, two miles of county roads, put in new culvers, and paid our township for the use of the roads. It raised the tax base of Boynton Township by 70 percent. People within 2,500 feet of a tower get a check under the “good neighbor” policy each year. We have lived around them since 2009, and we hardly notice them. KEITH HANING, Delavan
Supports corn checkoff increase Editor: I support the Illinois Corn Marketing Board’s (ICMB) proposed checkoff increase from 3/8 to 5/8 of a cent. The checkoff successfully has funded many worthy projects over the years and under the direction of ICMB has changed with the time to complement the needs of Illinois corn growers and Illinois agriculture. I imagine that support of the Illinois Livestock Development Group (ILDG) or Illinois Farm Families to promote agriculture’s image was not yet on the radar when the checkoff was begun to fund product research and promotion. However, the vision to collect checkoff funds was put into place and producers have benefited from its use. Today we have a disturbing trend of fewer dollars going into applied and production research for agriculture and corn production. We are all aware of the budget cuts leveled at Extension and other public research institutions. The increase in the corn checkoff presents an opportunity to fill a need that currently is prohibited by its legislation — funding production research.
While at the time of the checkoff conception we were dealing with overproduction and oversupply, times have changed again. We need research in production to accommodate increasing environmental regulation and corn use. Private seed companies have done a good job of improving yields and other agronomic traits. However, farmers benefit most if successful research also is occurring in the public sector. Increasing the checkoff and allowing funds to be used for production research creates the opportunity to strengthen the human capital at our universities and other research campuses. Top-notch researchers and instructors attract top students, research grants, and fellow toplevel peers in research and teaching. Checkoff funding raises the possibilities for private and private-public research and teaching initiatives in these fields. In summary, I ask everyone for their support of the corn checkoff increase. And in return, I ask the ICMB to seek changes in its legislation to allow funding of production research. CHUCK CAWLEY, Rochelle
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