U.S . Pork ProdUcerS might not be “lovin’ it,” but they are prepared to meet new production requirements outlined by McDonald’s. ....................................2
ScHool diStrictS benefit financially from wind farm construction even when general state aid decreases, according to a new study out of ISU. .............................6
A StePHenSon County computer entrepreneur is proving Northwestern Illinois can access high-speed Internet despite thoughts to the contrary. .............7
Monday, February 20, 2012
Two sections Volume 40, No. 8
Farm bill process under way; insurance net in peril? BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
As the Senate essentially rebooted the 2012 farm bill process last week, the White House proposed further spending cuts in crop insurance — according to many lawmakers and analysts, a likely linchpin of future ag policy. Generally, the House initiates farm bill development, but the Senate instead launched hearings last Wednesday, focusing on ag energy. The Senate is expected next to conduct hearings on rural development and ag research before addressing commodity programs reportedly in late March; House Ag Committee hearings are anticipated this spring. Meeting with Illinois Farm Bureau Board members, American Farm Bureau Federation (AFBF) Chief Economist Bob Young said final farm bill passage is “possible” by Memorial Day. That view was not shared by all, however: “I don’t know if we can engage in successful farm bill debate this year,” Springfield Democrat U.S. Sen.
Dick Durbin told the IFB directors. He cited continued political discord leading up to the 2012 elections. USDA Chief of Staff Krysta Harden said the initial Senate hearing generated “good bipartisan dialogue.” USDA’s maintaining a largely hands-off approach to the farm bill, she said, noting that “Congress writes the farm bill.” Instead, USDA will play a bipartisan, helpful role by supplying committees data and assistance, she said. Young said the farm bill debate is now following its normal course, despite hasty fall discussions that led to an aborted deficit “super committee” plan to cut $23 billion in ag funding over 10 years. In Senate Ag Chairman Deb Stabenow’s (D-Mich.) view, “direct payments are gone,” Young said. “Whether that money’s gone or not is another question,” he advised. Program ponderings The key presumption is that some share of direct payment
savings would be transferred to countercyclical and/or revenue protection programs. But Harden said that while direct payments once served as a crosscommodity “leveler,” they’re
now “hard to defend” amid high prices. She noted continued skepticism about crop insurance among southern growers. Young warned AFBF’s pro-
posed “deep loss” revenue protection program represents a major change for program farmers. See Farm bill, page 2
U.S. Sen. Dick Durbin, a Springfield Democrat, seated left, discusses 2012 ag priorities with Illinois Farm Bureau President Philip Nelson, seated right, and IFB board members visiting Capitol Hill. See other highlights of the board’s trip in accompanying story and inside. (Photo by Martin Ross)
Highway bill imminent or at impasse? Is Congress finally on the road to a new, long-term “highway bill”? The answer depends largely on whether you’re asking House or Senate leaders. Meeting last week with participants of a Washington waterways symposium, U.S. House Transportation and Infrastructure Chairman John Mica (R-Fla.) said he was hopeful about quick passage of a multimodal transportation/ “energy” bill. Mica’s committee has put forward a fiveyear, $260 billion highway bill aimed at rebuilding the nation’s highways and bridges and, for the first time, addressing selected U.S. waterway concerns that in the past have taken a back seat to surface transportation issues. According to Mica, the proposal is free of so-called spending “earmarks,” instead granting states greater flexibility in using infrastructure funds as they see fit. The plan would attempt to streamline the regulatory process involved in approval of new highway projects. Transportation Water Resources/Environment Subcommittee Chairman Bob Gibbs (R-Ohio) noted highway projects often take 15 years from inception to construction, and told symposium participants he’d seek similar reforms “on
the water side.” pushing a two-year package. Mica noted “we’ve found the money” The House plan would eliminate any to fund his bill, via proposed allocation of guarantee of a portion of gas tax revenues offshore oil drilling royalties. That plan, for mass transit; the Senate bill strongly supwhich presumes expanded domestic oil ports transit funding. exploration, would help The House plan proposed fastsupplement the federtracking the Canada-U.S. Keystone FarmWeekNow.com al Highway Trust XL Pipeline and opening Alaska’s View comments by Chairman Arctic National Wildlife Refuge Fund, a repository for fuel taxes that has Mica on transportation issues (ANWR) to oil drilling, despite seen waning revenues at FarmWeekNow.com. President Obama’s decision to amid increased vehicle delay pipeline approval and Democfuel efficiency and reduced highway travel. rat opposition to ANWR development. “We’re spending about $50 billion a ANWR drilling was approved in a separate year more than we take in. We take in bill late last week. about $35 billion (in the trust fund). We’re Durbin warned the House bill would cut taking that (extra) money out of the gen15 to 20 percent of the federal highway moneral Treasury, and 43 cents on the dollar is ey Illinois now receives; a Durbin aide said the borrowed,” Mica said. Senate plan assures “a top level of funding.” Meeting with Illinois Farm Bureau board Because no specific project earmarks are members in Washington last week, Springincluded in the Mica plan, IFB National field Democrat U.S. Sen. Dick Durbin was Legislative Director Adam Nielsen said “a not as confident about imminent passage of lot’s riding on the (state’s) funding formula.” a highway bill. IFB seeks several ag-related measures in Senate Environment and Public highway legislation, including a continued ag Works Chairman Barbara Boxer (Dexemption from commercial trucker “hours Calif.) and committee ranking Republican Sen. James Inhofe (R-Okla.) are See Highway, page 4
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FarmWeek Page 2 Monday, February 20, 2012
Quick takes FCC BLOCKS LIGHTSQUARED NETWORK — The Federal Communications Commission (FCC) last week announced its would block planned development of a nationwide wireless network by LightSquared. The FCC pointed out concerns that the proposed network could not co-exist with global positioning systems (GPS). The American Soybean Association (ASA) applauded the decision and said it would be a relief to farmers who rely on GPS technology. “Farmers invest thousands of dollars in high-precision GPS equipment and applications to run more efficient, sustainable, cost-effective, and productive farms,” said Nebraska farmer Steve Wellman, ASA president. “The LightSquared network would have rendered that investment ... all but useless,” he said. ENERGY BILL HAILED — Passage by the House Thursday of a bill to increase domestic energy supplies, including development of a vast new source in the oil shale deposits in the American West, helps provide the type of energy solutions America needs, according to the American Farm Bureau Federation (AFBF). In a letter to the House, AFBF President Bob Stallman explained that increasing U.S. energy security is an important issue for America’s farmers and ranchers. “Farm Bureau believes finding comprehensive energy solutions can only strengthen American security while helping ag riculture’s long-ter m economic health,” he said. The bill would end bureaucratic delays facing development of oil shale resources and direct the Interior Department to move ahead with a leasing program. It also allows for the development and recovery of new energy resources in the Outer Continental Shelf, and will open less than 3 percent of the Arctic National Wildlife Refuge to responsible energy development, Stallman said. SCHOOLS TO RECEIVE CAPITAL FUNDS — School districts statewide are to receive more than $623 million in capital funds for repairs, updates, and new buildings, Gov. Pat Quinn announced last week. Thirty-one districts around the state were approved for funding this fiscal year after their projects were certified by the Illinois State Board of Education and the Illinois Capital Development Board. Quinn also announced the state is making available $50 million in school maintenance grants. The dollarfor-dollar state matching grant program provides up to $50,000 in matching funds for building maintenance or upkeep.
(ISSN0197-6680) Vol. 40 No. 8
February 20, 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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livestock
Pork industry gets prepared to meet McDonald’s demands condition), according to authors of the CME Group’s Daily Livestock Report. U.S. pork producers might not be “lovin’ it,” The American Veterinary Medical Associabut they are prepared to meet new production tion previously determined both individual sow requirements outlined last week by fast-food housing and group housing systems can provide giant McDonald’s. for the well-being of sows. McDonald’s, based in Oak Brook, plans to The McDonald’s requirements essentially will phase out the use of sow gestation stalls used force pork producers in its supply chain to use by pork producers in its supply chain. some form of a group housing system. Producers in its system have until May to “We recognize several different types of develop plans to phase out gestation stalls, housing are good for raising sows and pigs,” McDonald’s announced last said Dereke Dunkirk, president week. The fast-food giant purof the Illinois Pork Producers chases about 1 percent of all pork ‘There are alter- Association and a farmer from produced in the U.S. each year. natives we think Morrisonville. “But as an indus“McDonald’s believes gestatry, we always react to consumer a r e b e t t e r f o r demands tion stalls are not a sustainable and can modify our t h e w e l f a r e o f practices based on those production system for the future,” said Dan Gorsky, senior demands.” sows.’ vice president of McDonald’s Pork producers in the past North America Supply Chain have responded to numerous Management. “There are alterconsumer demands, including — Dan Gorsky natives we think are better for adopting genetics that produce McDonald’s the welfare of sows.” leaner meat. Gestation stalls are individual A USDA study released in enclosures (usually about 2 feet by 7 feet in size) 2006 found six common cuts of pork were used to house sows during the breeding and leaner at that time than they were in 1990, with gestation phases of their reproductive cycles. 16 percent less total fat and 27 percent less satThe stalls are used to remove the social urated fat. stress (and injuries from fighting) of group“We view (the new production guidelines set housed sows. Another key benefit is the stalls forth by McDonald’s) as another way to work allow farmers to manage sows as individuals with consumers,” Dunkirk said. (thin sows can be given more feed without havSmithfield Farms and Cargill already have ing to compete with a larger, boss sow, and started reducing the use of stalls by pork proheavy sows can be fed less to maintain body ducers in their operations. BY DANIEL GRANT FarmWeek
Simon sets first rural listening session March 6 Lt. Gov. Sheila Simon has planned the first in a series of rural listening sessions for March 6 in the Four Points by Sheraton Hotel and Conference Center, Peoria. The event will be in Salon D from 4 to 6 p.m. Space is limited and reservations are required by March 2. Simon chairs the Governor’s Rural Affairs Council and is hosting the session in partnership with the Illinois Institute for Rural Affairs at Western Illinois University. The sessions will provide an opportunity for
rural elected officials, policymakers, and local leaders to share their insights on rural issues with Simon and the Governor’s Rural Affairs Council. Information gathered will form the basis for a strategic agenda for rural Illinois. This will include specific policy recommendations and action items for the Rural Affairs Council and its member agencies. For information, contact Christina Rogers, Simon’s policy adviser for rural affairs, at 217-5583727 or by e-mail at Christina.Rogers@illinois.gov.
Farm bill Continued from page 1 AFBF still is awaiting an official Congressional Budget Office (CBO) “score” of the program’s projected cost, but Young advised the disastertype revenue program “is not a program that’s going to write you a check every year.” Durbin said he currently supports a “shallow loss” revenue plan that basically attempts to improve on the existing Average Crop Revenue Election program and, in his view, provide “reasonable protection” against production/price shortfalls. Meanwhile, the administration spurred Ag Committee ire by proposing what Young deemed substantial cuts in crop insurance in its fiscal 2013 budget — a reported $8 billion over 10 years. Insurance insecurities? USDA’s Risk Management Agency (RMA) Deputy Administrator Michael Alston noted concerns that a reduction in federal crop premium subsidies could spur growers to reduce coverage levels “so their premiums essentially stay the same.” He cited current average 80 percent coverage
levels for major crops, and given 2011’s Midwest flooding, Southwest drought, and Hurricane Irene damage, “I can’t imagine not having that safety net,” Alston said. IFB directors noted strong bipartisan support for the insurance program — “I know the importance of crop insurance,” said Chicago Democrat Rep. Jesse Jackson Jr., whose reconfigured district now dips into Kankakee County. Alston said he acknowledged concerns about a rumored bid to shift crop insurance delivery to USDA’s Farm Service Agency (FSA) with elimination of FSA-administered direct payments. Informa Economics estimates such a move could achieve $2.7 billion in savings over a 10-year period. But Alston argued private insurers under RMA overview represent “the most efficient, most effective way to deliver the program.” House/Senate ag staffers indicated insurance cuts and any proposed agency shift would be dead-onarrival. “You don’t fix things that aren’t broken, not with all the things that are broken,” Harden said.
FarmWeek Page 3 Monday, February 20, 2012
GOVERNMENT
Safety focal point of Farm Bureau legislative priorities BY KAY SHIPMAN FarmWeek
Statewide commercial wind development standards to protect public health and safety and higher fines to prevent improper uses of slow-moving-vehicle (SMV) emblems are among the 2012 state legislative priorities for Illinois Farm Bureau. However, given the state’s dire fiscal situation, lawmakers likely will emphasize
state appropriations, according to Kevin Semlow, IFB director of state legislation. “The main focus will be the budget,” Semlow said. “The question is with the new districts and everyone running for election — will they focus on the election or legislation? “If history of past redistricting election years is any indication, there will not be much fervor for passing bills,” Semlow added.
The year following redistricting, all state legislative seats are up for election. Public safety is at the heart of SB 3271, sponsored by Sen. Michael Frerichs (DChampaign). The bill seeks to establish statewide standards for commercial wind energy projects. Those standards also would provide adequate protection for private property rights and allow for reasonable development of com-
Quinn taps former state lawmaker as ag director Appointment faces Senate confirmation Agricultural exports and economic growth were major topics last week at Bob Flider’s first meeting as the state agriculture director nominee. “So much of what we (Illinois) do has to be done with agriculture in the lead,” Flider told Bob Flider FarmWeek while attending an export transportation summit in University Park. Flider, a former state lawmaker from Mt. Zion, was named ag director by Gov. Pat Quinn. His appointment requires Senate confirmation. “Throughout his career, Bob Flider was a tireless, effective leader for rural farming communities and global agribusiness leaders,” Quinn said.
Since March 2011, Flider has served as the director of broadband impact for the Partnership for a Connected Illinois. “Bob Flider worked well in the agricultural arena when he served in the General Assembly and on the House Agricul-
FarmWeekNow.com View a video interview with Illinois ag director nominee Bob Flider at FarmWeekNow.com.
ture Committee,” said Illinois Farm Bureau President Philip Nelson. “Bob’s door was always open, and we look forward to working with him in his new role as director of the Department of Agriculture.” Flider said he hopes to work with Farm Bureau and other farm organizations to build partnerships. Some ag sectors, such as the livestock industry, are facing challenges, and Flider said he had heard concerns
from that industry. “My approach is I want to look at it ... and work toward common sense solutions,” he said. “One of the things that is evident is that grain production and the livestock industry are interdependent.” One of Flider’s interests is preservation of family farms and “ensuring that opportunity for young people,” he said, adding that his daughter is married to a Shelby County farmer. “I understand the challenges facing farmers,” Flider said. In the General Assembly, he represented a strong agricultural area with major agribusinesses. Flider served in the Illinois House from 2003 through 2011. He served on several committees, including the Agriculture and Conservation Committee and the Energy and Environment Committee. Flider and his wife, Jean, live in Mt. Zion. — Kay Shipman
Treasurer tweaks link-deposit program Illinois Treasurer Dan Rutherford has made new adjustments to make the state’s ag link-deposit program more useful to borrowers and lenders. “We’ve lowered interest rates considerably,” Rebecca Huston, manager of the treasurer’s Invest in Illinois program, told FarmWeek. Through the link-deposit program, the state does not loan money to farmers but deposits state funds in participating financial institutions that determine farmers’ credit worthiness and make the loans. Ag Invest offers one-year loans for annual operating expenses and long-term loans for major capital expenses, such as equipment and building construction. The rates are set each month. Huston illustrated her point
with examples of one-year and long-term loans completed this month. The maximum interest rate would be 3.71 percent for an annual operating line of credit.
FarmWeekNow.com To learn more about the Illinois Ag Invest farmer loan program, go to FarmWeekNow.com.
The maximum interest rate for a long-term capital expenditure would be 4.06 percent for two-years. In addition, the annual loan limits have been raised for individual farmer borrowers and for farm operations. An individual farmer may borrow up to $300,000, higher than the previous limit of $120,000. A farm operation may borrow up to $600,000, up from the
previous limit of $240,000. The long-term program allows a farmer to borrow up to $200,000 per year for construction, equipment, and other capital expenses. In a letter announcing the changes, Rutherford acknowledged he lifted his moratorium on the state link-deposit programs after reviewing and revising each program. “Drawing on the experience garnered over the past several months, I have now instituted some additional enhancements to further improve the programs and their usefulness,” Rutherford wrote. Huston advised interested farmers to contact the treasurer’s office at 217-557-6436 for a list of participating lenders. Farmers also may contact their local financial institutions, she said. — Kay Shipman
mercial wind energy projects. Farm Bureau delegates approved similar policy at the IFB annual meeting in December. “I’m supportive of the wind industry and think statewide standards will help with growth,” Frerichs said. “Decommissioning is my greatest concern,” the senator added. “When they are decommissioned, I want to ensure there is money to take them down rather than leave them as an eyesore in the farming community.” Improper use of slowmoving-vehicle (SMV) emblems would become a more expensive violation under HB 4598, sponsored by Rep. Pat Verschoore (DMilan). “There are people using these signs to mark gate posts or fence posts. That was not what they were designed for,” Verschoore said. Currently, SMV emblems
are intended to be used to identify farm tractors and equipment, horse-drawn vehicles, and special mobile equipment. If an SMV emblem is used for any other purpose in a road right-of-way, it is considered a petty offense and the fine is $25 for a first offense and $75 for a second offense within a year of the first offense. Verschoore’s proposal would increase the fine of a first offense to $75 and expand the definition of illegal use beyond a road right-of-way. Raising the fine will deter illegal uses, according to Verschoore. “Once you show them you mean business, things generally will be worked out.” Other legislative priorities include SB 3356, sponsored by Sen. Kwame Raoul (D-Chicago), which would unsever mineral rights not being used to the surface landowner.
FarmWeek Page 4 Monday, February 20, 2012
transportation
Transportation chairman committed to water bill BY MARTIN ROSS FarmWeek
U.S. House Transportation and Infrastructure Chairman John Mica (R-Fla.) last week pledged to seek a congressional makeover for the nation’s sagging waterways system that river users have volunteered to help finance. Arguing “our maritime ‘highways’ need to be developed,” Mica promised members of the Waterways Council Inc. (WCI) he would push for a new Water Resources Development Act (WRDA) following passage of highway legislation. To date, Congress has failed to fund construction of new Upper Mississippi/Illinois River locks authorized under the 2007 WRDA bill. A key challenge in securing federal funding lies in waning reserves in the Inland Waterways Trust Fund, a pool of private matching funds fed by barge fuel taxes. An industry capitol devel-
opment plan has offered to boost taxes while proposing reforms aimed at greater federal efficiency in lock maintenance and planning (see accompanying story). Illinois Farm Bureau board members last week lobbied for Rep. Ed Whitfield’s (R-Ky.) proposal to enact the plan. “We haven’t done a WRDA bill in six or seven years,” Mica told shippers at a D.C. waterways symposium. “We can do this working together. We must do this working together.” River improvements can “save energy” and reduce wear and tear on highways, he said. Mica said investment in locks is preferable to the cost of repairing “little stretches of highway through urban America.” Lawmakers meeting with IFB directors appeared broadly supportive of that investment — House Energy and Commerce Committee member John Shimkus, a Collinsville Republican,
warned “there will be a disaster” resulting from deterioration of 80-year-old locks reliant on “baling wire and dust tape.” Chicago Democrat Rep. Jesse Jackson Jr. told directors lock upgrades are needed. Beyond industry needs, WCI Chairman Matt Woodruff views the capital development plan as a potential cost-saver for taxpayers and the economy. “We need to start at the very beginning, in terms of better planning for these projects, better cost estimation, having a far better idea what it’s really going to cost before we ask Congress to authorize it, before we ask the industry to fund half of it,” Woodruff told FarmWeek. A new WRDA measure faces two major challenges in the House — an aversion among many members to increased taxes and specific project “earmarks” in individual districts.
Olmsted overrun threat to river projects? News of staggering cost overruns associated with and a potential 10-year delay in completing a key Southern Illinois lock project comes at a “really unfortunate” time, as ag shippers seek new federal investment in Midwest waterways. So said Soy Transportation Coalition Executive Director Mike Steenhoek in the wake of the revelation that the Olmsted Lock and Dam project on the Ohio River to date has run nearly 400 percent over budget. The president’s fiscal 2013 budget reveals project cost has reached $2.9 billion and indicated the project may not be completed for another 10 years. While that news is disturbing, Steenhoek hopes Congress’ main takeaway will be a realization of the need to reform how locks are funded, built, and maintained in the future. The Olmsted project, designed to replace outdated Ohio River locks 52 and 53,
was authorized in 1988 at a cost of $775 million, with a projected seven-year construction period. Since then, it has seen multiple cost over-runs, and by last year, Olmsted’s price tag had risen to $2.2 billion. Illinois Corn Growers Association immediate past president Jim Reed raised concerns Olmsted “might not even be complete before the locks and dams it was meant to replace do indeed fail.” Reed called the project “a poster-child of bureaucratic ineptitude.” What originally was seen as the first in a line of expected waterways improvements “now anchors the system completely idle,” he warned. He fears project controversy will interfere with adoption of improved post-Olmsted lock construction strategies, improvements in other areas, and construction of new Upper Mississippi-Illinois River locks.
Highway Continued from page 1 of service” requirements and a clarification of interstate vs. intrastate travel that IFB President Philip Nelson said would free farmers delivering goods to in-state markets from requirements imposed on “coast-to-coast truckers.” Durbin suggested the highway bill “might not be the right approach” to ensure ag protections, given political uncertainty about passage and the proliferation of proposed highway amendments “that have nothing to do with highways.” While the House Rules Committee last week put a hold on Mica’s plan, he believes a political accommodation can be reached in House-Senate conference. “We will work with (Boxer),” he pledged. “. . .I think she’s just as committed as I am to get this done for the country.” — Martin Ross
“For a lot of members of Congress, this is not going to inspire them to devote any additional money to our inland waterways system,” Steenhoek told FarmWeek. “But this does provide an opportunity to encourage members of Congress to revisit how we finance our system. We have a very inefficient, ad hoc, piecemeal approach to allocating money to our lock and dam system. “It’s one of the reasons we have these major overruns. How money’s allocated is just as important as how much money is allocated.” Olmsted itself is strategically “critical” to Midwest shipping, he argued. Because it is located at the confluence of the Ohio and the Mississippi, a shutdown at the site would affect eastern Corn Belt shipments into the Gulf channel and the flow of coal, petroleum, and ag inputs into the region. Waterways Council Inc. (WCI) CEO Mike Toohey estimates Olmsted delays will cost $700 million per year in nationwide benefits, beyond placing “a risky 10-year bet in relying on the Roaring ’20s-era facilities at locks 52 and 53.” Steenhoek noted successful navigational improvements in a number of countries. Panama is moving toward completion of “six Olmsted-sized major lock expansions” in 2014, “below budget and ahead of schedule,” Toohey emphasized. — Martin Ross
Peoria Republican U.S. Aaron Schock, standing, discusses the Washington policy scene with Illinois Farm Bureau board members and President Philip Nelson, right. Schock has been a major advocate for new, longterm surface transportation legislation. (Photo by Martin Ross)
Midwest lock failures pose far-reaching ripples The economic ripples of Midwest lock failures would be felt well beyond the Heartland, accord to Soy Transportation Coalition (STC) Executive Director Mike Steenhoek. The river navigation network is “a system the whole country really relies upon,” he said. That reliance should only grow as the potential of the newly expanded Panama Canal comes to fruition, he told FarmWeek prior to an inland waterways symposium last week in Washington. STC has attempted to docu‘It’s not a matter ment the Mississippi River’s of if this ever reach through a soy checkoffhappens — it’s a funded Texas Transportation Institute study indicating key matter of when it impacts for more than just corn happens.’ and soybean producers. The study, aimed at Washington lawmakers, considered the broad — Mike Steenhoek implications of “catastrophic” Soy Transportation Coalition failures at Mississippi system locks. In Steenhoek’s view, “it’s not a matter of if this ever happens — it’s a matter of when it happens,” given the condition of outdated Midwest locks. “The study examined what the impact would be not only for producer income but also on the ultimate cost for our customers, domestically,” he noted. “If you have a failure at any number of these locks, you’d see some of the livestock operations in the southeast and the southwest parts of the United States be adversely impacted. “These areas are far removed from our inland waterway system. The stakeholder group is larger than many people realize, and this study provides an opportunity to convey that message to policymakers who represent those districts.” Further, expansion of the Panama Canal (slated for completion by 2014) will provide Gulf access for massive “Panamax” vessels with far greater commodity loading capacity. By some estimates, those vessels could accommodate an added 13,000 metric tons or 700,000 bushels of soybeans. The recent checkoff-funded report concluded that would generate an increased “draw” of export grain from points farther removed from river terminals. The study suggested the soybean draw area could expand from 70 miles of major river ports to at least 160 miles, and National Corn Growers Association policy specialist Elizabeth Jones agrees the canal’s expansion has “re-emphasized just how important our lock and river system is” to corn export markets. That likely would result in more competitive rail freight rates throughout the Corn Belt, as well, Steenhoek said. But all that will happen only if Mississippi system locks can accommodate greater volumes. “Updating those locks and making them current for larger barge (tows) only becomes more and more important,” Jones told FarmWeek. — Martin Ross
Page 5 Monday, February 20, 2012 FarmWeek
REsOuRcEs
Big corn crop could pressure spring fertilizer supply “Everybody in the supply “A big factor in the market chain is having a hard time getis a lack of buying activity,� ting a bead on what final Dillier said. “The danger is, If U.S. farmers boost corn demand is going to be.� because of a lack of buying plantings this spring — some So why don’t retailers simactivity, there’s a possibility private forecasters have preply stock up on fertilizer in (the industry) dicted corn case there is strong demand hasn’t posiplantings could this spring? tioned enough total 95 million ‘We have the potential for a tremendous call on (fer- fertilizer for There is no futures market acres — spring in the fertilizer industry to offthe spring.� fertilizer suptilizer) supplies this spring.’ set risk, so the only way retailPrices plies and prices ers can cover buying risk to to possibly could could be preslock in farmer sales. sured. — Joe Dillier continue to GROWMARK director of plant food That’s why a wait-and-see trend down, Farmers, but they just as attitude by farmers could be a therefore, big gamble this spring. easily could should consid“If a wait-and-see approach jump $100 per ton this spring, er locking in some of their fer- ly if the spring weather is con- making purchases so far this is your Plan A (to determine Dillier noted. winter in what could amount ducive to planting corn. tilizer needs as soon as they fertilizer purchases), then by “There is so much uncerto a game of chicken as farm“We had a very strong fall determine their spring planting the time you see what happens, tainty and volatility out there ers wait for price breaks and on P and K and anhydrous,� mix, according to Joe Dillier, Plan B probably won’t be availDillier said. “But we had a sim- retailers wait for orders before you almost question whether director of plant food for able,� Dillier added. it’s a replay of 2008,� he said. locking in fertilizer supplies. ilar big fall in 2010 (with GROWMARK. “We have the potential for a record fertilizer applications at some locations) and we still tremendous call on supplies needed all the supply we could this spring,� Dillier told FarmWeek. “If that’s the case, get in the spring of 2011.� The 2012 Tri-State Forest Stewardship Con- ner, and crop tree release techniques to maxiFertilizer prices — which we could have (supply) tightmize tree growth. ference will be March 10 at the Sinsinawa earlier this month in the state ness. A list of topics and registration materials Mound Center, Sinsinawa, Wis., near Dubuque, hovered between $800 to $855 “If you know what you’re are posted online at Iowa. March 1 is the deadline to mail advance per ton for anhydrous, $620 to going to plant,� he continued, {www.forestry.iastate.edu}. registrations, which are required. $700 for diammonium phos“I’d be getting the fertilizer Participants will have an opportunity to talk The conference draws more than 550 woodphate, $508 to $580 for urea, lined up.� land landowners from Illinois, Iowa, Minneso- with state and federal forest managers and see Farmers last fall applied his- and $580 to $670 for potash, the most recent advances in forestry technology. ta, and Wisconsin. according to the Illinois torically high levels of anhyDue to limited space, woodland owners are According to Jay Hayek, University of Illiencouraged to register early and take advantage nois Extension forester, more than 25 presenof the early registration discount. The registratations will cover a wide range of forestry and tion fee is $50 per and includes a continental wildlife topics. Those include timber marketbreakfast, lunch, refreshments, resource packing in today’s economy, woodland prescribed et, and handouts. fire, forestry herbicides, timber harvesting, safe Feb. 21 For more information, contact Hayek at handling and processing of wild game, comNutrient management workshop by Lake Vermilion Water 217-244-0534 or send an e-mail to jhayek@illimon tree diseases and pests and how to treat Quality Coalition, 8 a.m. to noon, Rossville Fire Department facility. Call 217-442-8511, extension 3. nois.edu. them, maple syrup production for the begindrous ammonia, phosphorus (P), and potassium (K). But it likely won’t be enough to offset fertilizer demand this spring, particular-
BY DANIEL GRANT FarmWeek
Department of Agriculture — have come down from peak prices last fall. But farmers, retailers, and wholesalers have held off from
Tri-state forest stewardship conference March 10
DATEBOOK
On-the-Road seminar, 9:30 a.m. Warren-Henderson Farm Bureau building, Monmouth. On-the-Road seminar, 6 p.m. Knox County Agri Center, Galesburg. Feb. 21-22 University of Illinois crop management conference, Kishwaukee College Conference Center, Malta. Feb. 24 On-the-Road seminar, 1 p.m. John Wood Community College Ag Center, Perry. Feb. 27 On-the-Road seminar, 7:30 p.m. Effingham County Farm Bureau, Effingham. Feb. 28 On-the-Road seminar, 9 a.m. Fayette County Farm Bureau, Vandalia.
A Leader in the Field and in the International Marketplace Agriculture needs leaders, and for 30 years the Illinois Agricultural Leadership Foundation has been developing effective policy and decision makers for agriculture. You’ll find our graduates in leadership roles throughout our nation and the world. Now it’s your turn. We’re accepting applications for our next class.
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Illinois Agricultural Leadership Foundation
(309) 837-7711 www.agleadership.org
FarmWeek Page 6 Monday, February 20, 2012
wind energy
ISU study: Districts gain financially from wind farms BY KAY SHIPMAN FarmWeek
School districts benefit financially from wind farm construction even when general state aid decreases, according to a new study by the Illinois State University (ISU) Center for Renewable Energy. Matt Aldeman, senior energy analyst with the center, reported the study results, including data from McLean County’s Ridgeview District in Colfax, and Lee County’s Lee Center District in Paw Paw. Aldeman spoke at a recent wind farm siting and zoning conference. Property tax revenue from a wind farm jumps the first year after construction is completed, but there is a lag before state aid calculations incorporate the increase in equalized assessed values, Aldeman said. “When districts get funding is important; the general state aid (to schools) will lag tax base growth by two years,” he said.
“When property tax revenue goes up, the public doesn’t understand what happens to general state aid.” Aldeman illustrated the change in the Ridgeview District’s finances before and after the Twin Groves Wind farm east of Bloomington was built in 2007-2008. For the first school year after construction was completed, the district received an additional $396,000 in revenue. The district’s revenue difference preand post-wind farm development grew to $1.28 million the second year — even though the district’s general state aid decreased because of the increase in property tax revenue. By the third year following construction, the district still received $697,000 more in revenue compared to the year before the wind farm was built. “Local (property) wealth — almost without exception — is better than the concern about (the uncertainties of) getting funding from the state,” Aldeman told FarmWeek. A similar impact has occurred with the Lee Center
District because property tax revenue from the Mendota Hills Wind Farm has bolstered the district’s coffers while general state aid has decreased. Even now, in the seventh year following construction, the Paw Paw District receives an estimated $200,00 difference between pre- and postwind farm development revenue. Districts can plan for wind
farms’ gradual depreciation, usually over 19 years, Aldeman said. By year 19, the wind farm would be fully depreciated so the change in revenue would
not be as great, he added. “But you’ve (districts) got 20 years of (revenue) benefit before that year,” Aldeman said.
Voters should prepare for primary election vote Illinois voters have homework to do before casting their votes in the March 20 primary election. “Some election outcomes turn on one vote,” said Illinois Farm Bureau Director Chuck Cawley, chairman of the board’s Illinois Government Committee. In Illinois primary elections, voters must declare a political party, and that means they can only vote for races within that party, said William “Bill” Blessman, Mason County clerk and recorder. “They can only select one party. They can’t cross over (party lines). They should look over the ballot and decide which race they want to vote in,” Blessman said. A voter may be interested in the race for the Republican presidential nominee and also a hotly contested race among Democrat candidates for a county board seat. But, by law, an individual can’t vote in both of those races. “It’s always a quandary for people, determining a party,” Blessman said. He pointed out Illinois does not register voters by party so voters may choose a different party in the next primary. If voters do not want to declare a party, they may request a non-partisan ballot, which would allow them to vote on such issues as school bond referendums. Changes that result from the redrawn legislative districts will vary across the state and depend on where
voters live, according to Blessman. Some voters may encounter no changes, while others may be assigned a different polling place or a different legislative district. “They may see different candidates on the ballot or they might be the same candidates but running in different number (districts),” Blessman
said. “The county board districts may have changed or may have different numbers.” Voters may have received information explaining the changes in the mail, he added. In most counties, election information will be available online. Blessman recommended voters access their respective county’s website or go to {www.elections.state.il.us} to find information on the Illinois State Board of Elections website. Farm Bureau members also will find information on the IFB website {www.ilfb.org}. Look on the right side under the “Quick Picks” icon and click on “Election Information.” Voters also may call or visit their local election authorities with any questions, especially those who don’t have or don’t use the Internet, Blessman said. “We’re sensitive to that,” he added. — Kay Shipman
Page 7 Monday, February 20, 2012 FarmWeek
technology
Computer firm supplies broadband in Northwestern Illinois Uses cable, tall structures BY KAY SHIPMAN FarmWeek
A Stephenson County computer entrepreneur is proving Northwestern Illinois can access high-speed Internet despite conventional wisdom and Internet maps that claim otherwise. “We’re doing our part to get Northwestern Illinois lit up with high-speed (Internet),” said Jay Butson, president of Computer Dynamics of Northwest Illinois LLC, Freeport. Butson and his compa-
ny’s computer division, JC WiFi, currently serve 2,300 customers primarily in Stephenson, Jo Daviess, and Carroll counties. The services also reach into Ogle and Whiteside counties. The company website is {www.jcwifi.com}. JC WiFi’s Internet customers include police and fire departments, schools, libraries, businesses, farms, and residences within a 2,000-square-mile area. Butson is using two fiber optic cables and high-speed microwave links to supply broadband across the service area. His network includes 120 broadcast sta-
tion sites on water towers, silos, and similar tall structures to relay signals. “If there is a suitable structure and it makes sense, we’re always looking for (new) sites,” Butson said. He said he frequently receives offers to add new structures because farmers are willing to help their neighbors access broadband. Butson started his Internet services 7.5 years ago after he bought a 35-customer Internet service in the Lake Carroll area. Over the years, JC WiFi grew as Butson first worked with an electric cooperative and then
later purchased six small Internet companies. Today, it is one of the state’s largest private broadband providers, he speculated. “We found there is a lot of (customer) demand for high speeds,” he said. Broadband enhances economic development in the three-county area and allows local residents to work elsewhere. For example, a woman who lives in Elizabeth in Jo Daviess County telecommutes daily to her job at a Chicago hospital via high-speed Internet, he added. Butson speculated the government-funded Internet infrastructure projects
New FCC guidelines will affect use of two-way FM radios BY DANIEL GRANT FarmWeek
Far mers who use twoway FM radios on their operations either will need to upgrade or replace their equipment by the end of this year. The Federal Communications Commission (FCC), as part of a transition to narrowbanding technolog y, will require all FM radios to operate on 12.5 kilohertz (KHz) bandwidth or less by Jan. 1, 2013. Many FM radios currently operate on 25 KHz bandwidth. “It’s a narrowing of bandwidth (being implemented by the FCC),” Jim Moyer of Moyer Electronics in Groveland, told the RFD Radio Network. “It will affect business use of FM radios.” Many consumers use cellular phones for mobile communication and therefore won’t be affected by the new regulations. But a number of workers in industries (such as far ming, construction, and railroad) that require physical activity and constant communication still rely on two-way FM radios, according to Moyer. Earl Williams, president of the Winnebago County Far m Bureau, is a far mer who will be affected by the new regulations. “If you’re doing a lot of back and forth (communication), an FM radio really helps,” Williams told Far mWeek. “For instance, if you’re communicating from the combine to the grain cart, it’s much more effective than a cell phone.” Williams noted that farmers who have commercial
drivers licenses also could be affected by the new regulations as two-way radios could be an alternative to hand-held cell phones. FarmWeek previously reported the Federal Motor Carrier Safety Administration issued a new rule that prohibits truck and bus drivers from using hand-held cell phones while driving. That rule took effect Jan. 3. Some existing two-way
‘If you’re doing a lot of back and forth (communication), an FM radio really helps.’ — Earl Williams Winnebago County farmer
FM radios, mostly those purchased in the past two to three years, will be capable of operating at the narrower bandwidth while others may be upgraded. But most users of FM radios likely will be better off buying new equipment, according to Moyer. Williams estimated he will buy four to five new FM radios at a cost of about $300 to $350 apiece. “They’re still cheaper than they were 20 years
ago,” Williams said. “And right now there still is plenty of time to do it (purchase or upgrade FM radios). If you wait until fall and everybody realizes we need to do this, there could be problems getting the equipment.” Moyer recommended
far mers unsure about the status of their current FM radios get a list of their equipment and check with suppliers to see if they can update existing radios or if they need to buy new equipment. The new FCC guidelines go into effect Jan. 1, 2013.
in Illinois would not benefit his company. He also questioned who will provide technical support and answer customers’ questions after those projects start providing service. In contrast, Butson’s locally based employees provide technical support for his customers. As for future broadband expansion in rural Illinois, Butson said it can occur, and he is willing talk with others about the challenges. “It takes a lot of work to get where we are today,” he said. “We’re not the only wireless company in Illinois. There are other companies doing it (providing broadband),” he added. Butson pointed out some regions of Illinois have high-speed Internet despite broadband maps showing otherwise as in the case with Northwestern Illinois. In Northwestern Illinois’ case, “that’s not the truth at all,” Butson concluded.
FarmWeek Page 8 Monday, February 20, 2012
biotechnology
Refuge report shows new procedures work — industry BY MARTIN ROSS FarmWeek
A new report purportedly indicating a three-fold increase in non-compliance with Bt corn refuge requirements actually highlights industry success in locating and addressing non-compliance “hot spots,” according to a National Corn Growers Association (NCGA) biotech specialist. According to data from the Agricultural Biotechnology Stewardship Technical Committee (ABSTC), a consortium of biotech companies that market Bt products, 41 percent of 3,053 farmers inspected in 2011 failed to fully comply with refuge requirements. ABSTC submits an annual report to the U.S. Environ-
mental Protection Agency (EPA) describing industrycoordinated Bt compliance efforts. The 2011 crop report was the first submitted following implementation of a new enhanced Compliance Assurance Program (CAP) program designed to improve insect refuge management (IRM) efforts. EPA has set specific guidelines for planting non-Bt corn varieties in conjunction with Bt corn to reduce potential for insect resistance to GMO varieties. Under the enhanced CAP process, companies that previously selected producers for on-farm compliance audits on a purely random basis now focus on customers whose sales records indicate they
have purchased little or no non-Bt refuge seed — at least from them. Nathan Fields, NCGA director of biotechnology and economic analysis, stressed farmers “have the right to buy refuge from whomever they wish.” But possible discrepancies in Bt/non-Bt seed purchases may indicate non-compliance or at least a need to further educate growers, he told FarmWeek. ABSTC IRM Subcommittee Co-chairman Joanne Carden argues the new approach has resulted in identifying more non-compliant growers. That, she said, demonstrates the enhanced CAP “is working as planned.” “The whole idea behind (enhanced CAP procedures)
Biotech crops taking root across more of the planet Biotechnology continues to take root in the developing world, as awareness of the need for global ag sustainabili-
Commodities Director Tamara Nelsen noted. “It’s also nice to see that the European scientific community — Swedish and
ty catches up to the food needs of a growing population. According to a new report by the International Service for the Acquisition of Agribiotech Applications (ISAAA), biotech crops were planted on a record 395 million-plus acres worldwide in 2011 — a roughly 8 percent increase over 2010. Some 16.7 million farmers planted GMO crops: ISAAA reported 90 percent were “small-resource” farmers from developing countries, which in turn accounted for nearly 50 percent of 2011’s global biotech acres. ISAAA suggests developing nations will exceed developed countries in GMO acres planted in 2012 — Brazil’s currently second to the U.S. “Brazil is a major engine of biotech growth, and also a country with enormous agricultural production and environmental conservation,” Illinois Farm Bureau Senior
British scientists — are supporting biotech publically.” The five leading biotech developing countries are China, India, Brazil, Argentina, and South Africa. Those countries, which planted 44 percent of the world’s biotech crops in 2011, represent 40 percent of the world’s population. China is moving ahead at a particularly fast clip — Chinese growers planted 9.6 million acres for a 71.5 percent adoption rate in 2011. While Bt cotton currently is the only commercial GMO crop approved for production there, Bt rice and phytase corn are now in field trials. Bt rice reportedly could raise yields by 8 percent, an important gain for China’s growing population and the nation’s export economy. As an environmentally challenged China continues to boost livestock/meat production, phytase corn can help reduce phosphorous levels in swine waste. Beijing-based seed company Origin Agritech Limited is
expected to commercialize GMO phytase corn in China, followed by herbicide-tolerant and Bt corn. “The Chinese are continuing to develop their own (biotech) platforms,” National Corn Growers Association biotech specialist Nathan Fields told FarmWeek. ISAAA noted key biotech progress across Africa: South Africa, Burkina Faso, and Egypt are producing GMO crops; Kenya, Nigeria, and Uganda are conducting crop trials; and others including Malawi have signed off on future trials. The European Union (EU) offered mixed news. Six EU countries planted a record 282,911 acres of biotech corn, and ISAAA cited a “strongly worded open letter” from 41 Swedish scientists in support of GMO crops and a petition endorsed by scientists in the United Kingdom. But German-based BASF has halted GMO crop development in the EU because of “the negative political and consumer push-back,” ISAAA reported. “They just decided it was in their best interest to focus on the Americas and Asia for biotech development,” said Fields, who discussed the move with company representatives. “It does indicate that the EU market is going to continue to be a challenge when it comes to biotech acceptance. The EU continues to isolate itself on the issue.” — Martin Ross
was to focus on and find growers who don’t understand or aren’t executing compliance requirements and visit them to make sure they’re in compliance,” Fields said. “If they’re not, we can begin to rectify it. “This was specifically designed to find growers who were out of compliance. Thus, the number should be higher.” ABSTC emphasized that in 2011, the majority of growers surveyed planted required refuge sizes within required distance of all Bt corn fields. The survey indicates the majority of all Bt fields had associated refuge. Further, according to the report, the majority of growers found out of compliance in 2010 were found to be complying with IRM requirements in 2011. That, according to NCGA, confirms that
the CAP approach is working. Reported refuge compliance continues to be lower in the southern cotton-growing region than in the Corn Belt. Southern growers have a larger required refuge size, smaller field sizes, more diverse cropping systems, and greater complexity of operations, and ABSTC plans heightened onfarm assessments within that region in 2012. To help farmers develop 2012 IRM plans and refuge strategies, NCGA has updated its “IRM calculator,” which outlines various refuge system options. The calculator, developed in collaboration with ABSTC companies and applicable to all Bt products, is available via computer or smart phone by logging onto {www.irmcalculator.com}.
APHIS may streamline biotech approval process Soybean and corn producers are hoping federal regulators can match — or at least gain on — the heightened pace of ag technology development. During a Washington meeting with the American Soybean Association’s (ASA) Biotech Working Group, Michael Gregoire, deputy administrator of USDA’s Animal and Plant Health Inspection Service (APHIS) Biotechnology Regulatory Services Program, outlined a new agency effort to streamline the approval process for new biotech traits. ASA President Steve Wellman argued the soybean industry has much to gain from prospective biotech improvements that will increase yields, improve soy nutrition, fight disease, and “offer competition and alternatives in the marketplace.” Illinois Farm Bureau Senior Commodities Director Tamara Nelsen called the plan “a very positive step and one the industry has been concerned about as more and more products are in the pipeline.” She noted GMO product approvals “seem to be taking longer and longer.” That’s a concern for corn as well as soybean growers: National Corn Growers Association biotech specialist Nathan Fields notes hopes that an initial drought tolerance trait will be commercialized in 2013 and anticipates continued development of new “platforms” for biotech weed and insect control. “We’ve seen a little bit of a slowdown (in approvals), and we understand that slowdown has been driven primarily by some of the (recent federal) lawsuits regarding Roundup Ready alfalfa and Roundup Ready sugar beets,” Fields told FarmWeek. “But APHIS seems to have taken some aggressive steps in reorganizing the way it approaches the (biotech product) deregulation process without compromising any of the scientific rigors of the process. We’re happy to see APHIS taking those steps toward maintaining the integrity of our regulatory system — keeping it science-based and efficient.” Statutorily, APHIS originally was expected to clear acceptable new products within six months, but that process has come to take up to five years in some cases. That’s raised concerns about continued U.S. research and innovation — in the time APHIS has taken to approve seven new crop traits, Brazil has OK’d 23 new traits for its farmers. Court challenges have complicated product approvals. Ironically, the GMO sugar beet, a focus of continued legal and political debate in the U.S., currently is the biotech crop with the fastest rate of adoption globally. — Martin Ross
Page 9 Monday, February 20, 2012 FarmWeek
EvEnts
Nominations sought for McCloy ag education program Illinois Farm Bureau has the opportunity to nominate one Farm Bureau leader or staff person between the ages of 28-40 for the 2012 John J. McCloy Foundation program. The program aims to improve understanding of German and American agricul-
ture through a three-week funded educational program of travel in Germany. Travel will occur between September and November. Complete details, including an application template have been e-mailed to the county Farm Bureaus and to current and past leaders
Women who are involved in agriculture will find a wide range of topics at the Women in Agriculture Seminar March 23 at the iWireless Center, Moline. The early registration deadline is March 1. Registration will start at 8 a.m., followed by a 9 a.m. keynote address by Michele Payn Knoper of {CauseMatters.com}. She will discuss leadership given the significant changes facing agriculture. Speakers will include: Adam Nielsen, Illinois Farm Bureau national legislative director, and Lori Laughlin, IFB director of issue management. Topics will range from financial planning to managing farm finances to communicating with consumers. The early registration fee is $50, which includes breakfast and lunch. Registrations received after March 1 will cost $60. The walk-in registration fee will be $75. To register, contact the Rock Island County Farm Bureau office at 309-7367432 or go online to {www.extension.iastate.edu/s cott/news/ womeninagriculture}. Seminar sponsors include the Farm Bureaus in Bureau, Carroll, Fulton, Henry, Knox, Lee, Mercer, McDonough, Rock Island, Stark, Warren-Henderson, and Whiteside counties and
Iowa’s Scott County Farm Bureau. Other sponsors are River Valley Cooperative, John Deere, 1st Farm Credit Services, FS/GROWMARK, Country Financial, First Midwest Bank. University of Illinois and Iowa State Extension are conference partners.
Women in Ag seminar March 23
throughout the state. For more information on the program, contact IFB program manager Peggy Romba, at 309-557-2007 or promba@ilfb.org. Applications are due March 9. At its March meeting, the IFB board will select the Illinois nominee and forward that application to the American Farm Bureau Federation (AFBF) by March 30 for its selection process. Acceptance confirmation will be made by June 1. Each state Farm Bureau may submit one application to AFBF for the program. AFBF President Bob Stallman will select nominees to forward to the American Council on Ger-
many, which makes the final decisions. The McCloy Fund of the American Council on Germany was established in 1975 as a tribute to John J. McCloy, soldier, statesman, lawyer,
banker, and the first civilian U.S. High Commissioner for Germany. McCloy worked continually to strengthen friendship and cooperation between Germans and Americans.
Nutrient management, land stewardship workshop focus Information about nutrient management and land stewardship will be offered from 7:30 a.m. to 12:45 p.m. Friday, March 2, at a free workshop for farmers in the Big Bureau Creek Watershed. The event will be held in the Bureau County Metro Center, Princeton. Dan Schaefer, nutrient stewardship director for the Illinois Council on Best Management Practices, will be one of the speakers. Meeting sponsors include The Wetlands Initiative, Prairie Rivers Network, and the Soil and Water Conservation Districts in LaSalle and Lee counties.
FarmWeek Page 10 Monday, February 20, 2012
trade
Economist: TPP could reinvigorate U.S.-Japan market BY MARTIN ROSS FarmWeek
Continued emphasis on free trade dialogue could help the U.S. raze the current Asian beef wall and rebuild postNorth America Free Trade Agreement (NAFTA) Japanese market share, according to USDA’s top economist. As the administration mulls possible consolidation of federal trade programs and agencies — a move some see as a step backward in U.S. export development — USDA Chief Economist Joseph Glauber notes potentially major inroads to be made in the Asian market in particular. Exports have “saved” margin-battered U.S. livestock markets over the past few years, Glauber argued, noting beef sales finally are exceeding “pre-BSE levels.” He sees significant export growth potential in a prospective Trans-Pacific Partnership (TPP) agreement, “particularly if Japan is brought in.” TPP participants currently include the U.S., Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam, and Taiwan’s newly reelected President Ma Ying-jeou has reiterated his push for his nation’s involvement, as well. “Obviously, we already export a lot to Japan,” Glauber
told FarmWeek. “They’ve fallen off a little bit as the (NAFTA) countries have grown as export partners with us. “But Japan is a very strong market. If you look at particular commodities like beef and rice and some other meat products, if they were to bring down (import) tariffs further, I think that would be very, very important.” Tariff reductions are merely one hoped-for outcome of East-West talks, the former World Trade Organization Doha Round lead negotiator stressed. Glauber argued reduced duties on meat and poultry are ineffective “if we can’t get the first pound of product in” because of non-tariff sanitaryphytosanitary (SPS) issues — according to the economist, a “big focus” of TPP talks.
In 2003, Japan suspended U.S. beef imports following announcement of a BSE case in Washington. In late 2005, the ban was partially lifted, but it was quickly reinstated after banned cattle bone material was found in a U.S. veal shipment. Japan relented seven months later, allowing entry of beef from cattle 20 months of age or younger. The U.S. is not alone in concerns about the wary Asian market. Japan last week announced a ban on imports of all Australian poultry products following an outbreak of avian influenza among ducks in the state of Victoria, eliciting charges of “overreaction” from Australia’s National Farmers Federation. Though he admits TPP may offer but a “small start” in terms of cumulative partici-
pant market share, Glauber sees potential to bring in other major players and ultimately “multilateralize” non-tariff issues in order to reach common regional standards. TPP talks also could aid in resolution of issues surround-
ing “sensitive” commodities such as dairy, he suggested. He noted a continued market shift over the past 10 to 15 years as U.S. dairy competitiveness has come to be driven by “commercial demand rather than surplus (milk) disposal.”
Chinese delegation agrees to large order of U.S. soy A delegation of Chinese importers, led by Chinese Vice President Xi Jingping, last week signed agreements to purchase $4.3 billion worth of U.S. soybeans. The agreements were signed during the U.S.-China Agricultural Symposium hosted by USDA in Des Moines. “China is the largest export market for U.S. soybeans, purchasing approximately 25 percent of our production,” said Steve Wellman, president of the American Soybean Association (ASA). “The Chinese purchases definitely add value to U.S. soybeans.” The commitments signed last week total about 317 million bushels, ASA reported.
Illinois Horse Fair to offer clinics, entertainment
The Illinois Horse Fair March 2-4 will offer classes with top trainers and equestrian evening entertainment on the Illinois State Fairgrounds, Springfield. The fair is sponsored by Illinois Farm Bureau, Purina Feed, Midway Trailer Sales, and Koetter & Smith Inc. The event is produced by the Horsemen’s Council of Illinois. HorseCapades, an equestrian variety show with horse breeds and riding styles from around the world will be featured at 7:30 p.m. Friday and Saturday. A separate ticket is required for that event, and advance tickets are encouraged because performances have sold out the last three years. A number of trainers will offer clinics to help riders and their horses in a variety of
disciplines. The program includes 25 breed and sport demonstrations, the stallion row and parade, an aisle of horses for sale, and the all-youth horse judging trials. More than 140 vendors will offer equipment and services in the trade show. New this year will be a quality horse auction at 3:30 p.m. March 4 in the Livestock Center. Consigned horses will be available for viewing at noon March 4 in the sale horse section of the 25 Series Barn. Information and consignment contracts are available online at {www.StaleyAuctionService.com}, by e-mail at StaleyAuction@yahoo.com, or by calling 309370-4337. The fair will open at 1 p.m. Friday with a
Auction Calendar Started Thurs., Feb. 16. 12 p.m. Ending Mon., Feb. 27th at 7 p.m. Online Only Auction. Espe Auctioneering. www.espeauctions.com Tues., Feb. 21. 10 a.m. Coles Co Real Estate. Kathryn Walker Robertson Trust, CHARLESTON, IL. Stanfield Auction Co. and Pierce Farm Mgmt. www.stanfieldauction.com Tues., Feb. 21. McLean Co. Farmland. Jean Wilson Estate. Soy Capital Ag Services. www.soycapitalag.com Tues., Feb. 21. 10 a.m. Ford Co Farm Land. Day Family, MELVIN, IL. Bill Kruse, Auctioneer. Tues., Feb. 21. 10 a.m. Knox Co. Land Auc. Romona D. Hinckley Estate, GALESBURG, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Tues., Feb. 21. 1 p.m. IL Multi-Use Land Auction Mason Co. Murray Wise Associates. murraywiseassociates.com Tues., Feb. 21. 160.87 Ac. McLean Co. Soy Capital Ag Services. www.soycapitalag.com Wed., Feb. 22. McLean Co. Farmland. Mabel Laesh Trust. Soy Capital Ag Services. www.soycapitalag.com Wed., Feb. 22. 10 a.m. Unreserved Auction Online Only. www.bigiron.com Wed., Feb. 22. 207 Ac. McLean Co. Soy Capital Ag Services. www.soycapitalag.com Fri., Feb. 24. 1 p.m. IL Beef Expo Annual Livestock Eq Auction. SPRINGFIELD, IL. Cory Craig, Auctioneer. edinburgauction@aol.com Fri., Feb. 24. 9 a.m. Grundy Consignment Auction. MORRIS, IL. Richard A. Olson and Assoc. www.richardaolson.com Sat., Feb. 25. 9 a.m. Annual Spring Consignment Auction. XENIA, IL. Dagg’s Auction Co. Sat, Feb. 25. 11 a.m. Farm machinery. Wanda Nash ~ Former Clinton Nash Farm, XENIA, IL. Carson Auction, Realty & Appraisal Co. www.carsonauctionan-
reduced $6 admission charge. Tickets are $12 for adults and $6 for children and seniors for the Saturday or Sunday fair admission; weekend passes are $20 for adults and $10 for children or seniors. Admission tickets for the HorseCapades show on Friday and Saturday cost $9 for adults and $6 for children and seniors; reserved seating is $15 for adults and $10 for children and seniors. Advance tickets may be purchased online with a credit card or by calling the Horsemen’s Council at 217-529-6503. Only cash will be accepted at the door. Fair information and schedules and special hotel rates are online at {www.HorsemensCouncil.org/HorseFair}.
drealty.com Sat., Feb. 25. 10 a.m. Farm Eq Auction. Mike Jones Estate, TOWER HILL, IL. Jordan Auction Service. jordanonlineauctions.com Sat., Feb. 25. 9 a.m. Farm Machinery and Consignment Auction. WATERLOO, IL. Schaller Auction Service. www.auctionzip.com Sat., Feb. 25. 10 a.m. Saline and Williamson Co Land Auction. MARION, IL. BuyAFarm.com Mon., Feb. 27. 10 a.m. Farmland Auction. John and Dana Martin, GIBSON CITY, IL. Bill Kruse, Auctioneer. Tues., Feb. 28. 9 a.m. Annual Spring Auction. CARLINVILLE, IL. Rick Stewart and Mike Crabtree, Auctioneers. www.biddersandbuyers.com Wed., Feb. 29. 10 a.m. Bureau Co. Land Auc. Sheffield, IL. Hertz Farm Mgmt. www.hfmgt.com Thurs., Mar. 1. 2 p.m. 184 +/- Ac. Champaign Co. Land Auction. Kenneth Cender Farm, MAHOMET, IL. Wallace Land Co. www.wallaceland.com Thurs., Mar. 1. 11 a.m. 126 Ac. Crop Land. Roland Wuthrich Estate, ORANGEVILLE, IL. Creighton Barker, Auctioneer. Thurs., Mar. 1. 10 a.m. Woodford & Tazewell Co. Land Auc. WASHINGTON, IL. Hertz Farm Mgmt. www.hfmgt.com Thurs., Mar. 1 7 p.m. Monroe Co Land Auction. WATERLOO, IL. BuyAFarm.com Fri., Mar. 2. 6 p.m. Farmland Real Estate Auction. Jake and Helen Bryant ~ JB Stables, BURNT PRAIRIE, IL. Barnard Auctions. www.auctionzip.com id #2008 Fri., Mar. 2. and Sat., Mar. 3. 9 a.m. Both Days. Consignment Auction. GORDYVILLE, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Mar. 3. 10 a.m. Huge Forys Estate Toy Auction. Janet Forys, MASCOUTAH, IL. Mark Krausz Auction Service. www.krauszauctions.com Sat, Mar. 3. 9 a.m. Consignment Auction. MURPHYSBORO, IL. Canning Auction
Service. www.canningauctions.com Mon., Mar. 5. 10 a.m. Hancock Co. Land Auction. Margaret L Harrison Bilderback Kilpatrick Estate, CARTHAGE, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Mon., Mar. 5. 10 a.m. Real Estate Auc. John B. Dwyer, EL PASO, IL. Schmidgall Auction Services, Inc. www.schmidgallauctions.com Tues., Mar. 6. Kankakee Co. Farmland Auc. Soy Capital Ag Services. www.soycapitalag.com Tues., Mar. 6. 10 a.m. Champaign Co Land Auction. URBANA, IL. Hertz Farm Mgmt. www.hfmgt.com Tues., Mar. 6. 10 a.m. 260 Ac. Coles Co. Paul H. Johnston and Elizabeth Johnston, ARCOLA, IL. Stanfield Auction Co. www.stanfieldauction.com Tues., Mar. 6. Kankakee Co. Farmland Auc. Soy Capital Ag Services. www.soycapitalag.com Wed., Mar. 7. 12:30 p.m. 1159 +/- Ac. Kankakee Co. KANKAKEE, IL. Roland Rosenboom, Managing Broker. www.rosenboomrealty.com Thurs., Mar. 8. 10 a.m. 75 Ac. Douglas Co. Farmland. First Federal Savings and Loan Land Trust #1179, ARCOLA, IL. Stanfield Auction Co. www.stanfieldauction.com Thurs., Mar. 8. 7 p.m. Monroe Co. Real Estate Auc. WATERLOO, IL. BuyAFarm.com Thurs., Mar. 8. 10 a.m. Rock Island Co Land Auction. COAL VALLEY, IL. Hertz Farm Mgmt. www.hfmgt.com Thurs., Mar. 8. Spring Farm Closeout and Consignment Auc. Agri-Tech, Inc., RAYMOND, IL. Sat., Mar. 10. 10 a.m. Rock Island Co Farmland Auction. The Margaret Vetter Estate, BUFFALO PRAIRIE, IL. Steve Relander Auctioneer/Farm Broker. www.relanderauctions.com Sat., Mar. 10. 9 a.m. Absolute Land Auction. Keck’s Marsh, PANA, IL. BuyAFarm.com
Page 11 Monday, February 20, 2012 FarmWeek
Young Leaders
Bustling ag economy rewards, challenges young farmers BY DANIEL GRANT FarmWeek
The strength of the ag economy in recent years has provided many young people with a golden opportunity to enter farming or grow their operations. USDA forecast net farm income for 2011 increased 28 percent compared to 2010 and totaled $100.9 billion. “Agriculture is a real exciting industry to be in right
U of I students to host ExplorACES March 9-10 Students may try a variety of experiences and learn about the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) at ExplorACES March 9-10 on the UrbanaChampaign campus. ExplorACES is a studentrun event to acquaint prospective and admitted ACES students with the college’s faculty, curriculum, and student organizations. Connect to ExplorACES on Facebook and Twitter or go online to {www.exploraces.org}. More than 2,000 students are expected to attend March 9 from 9 a.m. to 3 p.m. and March 10 from 10 a.m. to 2 p.m. Information will be available on study-abroad programs, nearly $2 million in scholarships, and opportunities for students with ACES degrees. More than 125 exhibits will showcase academics, research, and student development. “ExplorACES is the ultimate opportunity to learn more about the college, especially if you are a soon-to-be high school graduate or transfer student interested in finishing a bachelor’s degree,” said Jason Emmert, ACES assistant dean of academic programs. Parents are encouraged to attend, Emmert said. Current ACES students have been planning the event for the past six months. “ExplorACES was built from a student’s perspective,” said Janell Baum, ExplorACES co-chair of publicity. “Having the right information in your hands and experiencing the people, the places, and the curriculum allows you to make the decision that is right for you.” Free parking and free shuttle service will be provided to and from parking lot E-14, just west of the Assembly Hall. “We built a mobile website this year, complete with maps, parking, and exhibit information {www.exploraces.org},” Baum noted.
now,” said Jason Bunting, an Illinois Farm Bureau Young Leader from Livingston County who serves on the American Farm Bureau Federation Young Farmers and Ranchers Committee. Bunting and other young farmers at the IFB Young Leader State Conference in Bloomington discussed with FarmWeek the opportunities and challenges facing young farmers and ag industry professionals. The event this month attracted about 370 Young Leaders from around the state, which was 20 more people than last year. The theme for this year’s event was “Unleash Your Potential.”
Loren Dickirson, a Young Leader from Lawrence County, in recent years saw enough potential in farming to expand beyond his family’s farm. He bought his first tract of land late last year and also is in the process of opening a new hog facility. He previously worked off-farm jobs, including being an instructor at Wabash Valley College. “I chose to stay in farming full-time and took the necessary steps,” Dickirson said. “I’m hoping to not ever have to look for a winter job again.” Keeping young people in farming and attracting new blood to the industry appears to be vital to world food security. Population forecasts suggest
farmers must increase food production 70 percent by 2050, yet more than 60 percent of U.S. farmers are 55 years or older. “(The farm) is a great place to raise a family, but it has its challenges,” Bunting said. “And passing (farms) to the next generation is a major, major issue.” Brad Schmidgall, a Young Leader from Livingston County who works at a retail ag facility, believes it is even more difficult for young people to get started in production agriculture without the assistance of family or friends already established in the business. Illinois land prices the first three quarters of last year increased 23 percent compared
to 2010, according to the Federal Reserve Bank of Chicago. Meanwhile, USDA projected total production expenses from 2010 to 2011 increased $34 billion to a record $320 billion while government payments declined 14.4 percent. “Without family involvement, it’s very difficult to create an operation on your own,” Schmidgall said. “(High startup costs) put younger people potentially behind the eight ball.” Schmidgall, therefore, believes some of the best opportunities for young people to get involved in agriculture are through ag-affiliated careers, such as processing or marketing.
FarmWeek Page 12 Monday, February 20, 2012
fb in action
80 Livingston County farmers hear about safety on the farm BY TERESA GRANT-QUICK
More than 80 farmers had a hot breakfast while learning of ways to stay safe on the farm at the second “Put Safety First on the Farm” breakfast held recently at the Lexington Community Center. Livingston and McLean County Farm Bureaus and Prairie Central Cooperative hosted the annual event to give farmers a refresher course about the hazards they face every day. John Lee, safety specialist with Grain and Feed Association of Illinois, showed videos and pictures of safety hazards on the farm including ladders, PTO entanglements, grain dust explosions, and grain engulfments.
“The No. 1 cause of grain engulfment is grain that is out of condition,” Lee said. “Preventing grain engulfment starts with managing grain condition.” Other factors that increase the risk of grain engulfment include high-capacity grain handling systems, working alone, and a sense of security due to experience. Lee warned farmers that experience is no substitute for taking the proper
safety precautions. It only takes a few seconds to become buried in grain, and 92 percent of victims do not survive. Trooper Mark Kastorff, commercial vehicle enforcement officer with the Illinois State Police, discussed road safety issues for farm equipment. He advised farmers that implements of husbandry are required to have visible slow moving vehicle (SMV) signs and proper hazard lights (one flashing amber and two red) to keep both motorists and farmers safe on the road. Kastorff also addressed trucking regulations concerning farmers, including Department of Transportation numbers, commercial driver’s licenses, and the new cell phone use ban. Participants also had the
chance to win door prizes that included SMV signs, fire extinguishers, spotlights, head lamps, and a set of equipment hazard lights. Each attendee received a plasticized “Farm Safety Starts Here” sign that doubled as their placemat, safety glasses, and ear plugs. Getz Fire Equipment, Stoller International, Bloom-
ington-Normal Audiology, and True Value in Lexington contributed to the prizes. Funding for the breakfast was provided in part through a farm safety grant from Illinois Farm Bureau and Country Financial. Teresa Grant-Quick is manager of the Livingston County Farm Bureau. She can be reached at 815-842-1103.
Trooper Mark Kastorff with the Illinois State Police discussed the need for safe movement of farm equipment on roads during a recent farm safety breakfast. (Photo courtesy of Livingston County Farm Bureau)
Entrapment training benefits farmers, fire departments BY TASHA BUNTING
Sharon Knorr, ag literacy coordinator for Adams County, left, goes over a class lesson with Meredith Brinkman, a John Wood Community College student who is involved in a new ag education program in the county. (Photo by Shawn Valter)
Adams Ag in the Classroom partners with John Wood CC BY SHAWN VALTER
Adams County Ag Literacy has partnered with John Wood Community College (JWCC) to develop a new agriculture class called AGR 195 Ag in the Classroom (AITC). The focus of the class is for an agriculture student to learn how to teach agriculture. Meredith Brinkman, a JWCC student, will be teaching agriculture concepts to an afterschool program, a public school classroom, and a parochial classroom. Sharon Knorr, ag literacy program coordinator for Adams County, is the instructor. She will provide guidance on learning theory and Illinois state standards/common core standards as well as topic objectives. Brinkman will decide on the topics to teach and then learn how to develop the lesson within her allotted class time. She will take into consideration the age of her students and their learning style. Another piece will be communication and background knowledge. She will have to know her topic and be able to communicate the objective of the lesson and also answer questions from her audience. This is an exciting collaboration for Adams County ag literacy. Ag Literacy can be promoted in more locations and we can provide a real-life experience for a college student to be a part of ag education. Adams County Farm Bureau directors and JWCC instructor Gary Shupe came up with the idea and made it possible. Shawn Valter is manager of Adams County Farm Bureau. He can be reached at 217-222-7305.
In 2010, 51 grain entrapments were documented — the highest number ever reported, according to Purdue University’s Agricultural Safety and Health Program. Nearly three-fourths of them occurred on farms. The rest occurred at commercial facilities. In an effort to promote safe grain handling, as well as how to rescue an entrapped person, a grain rescue and protection training session was held last week at the Grundy County Highway Department. The free program was sponsored by TS Quick Enterprises, Grundy County Farm Bureau Young Leaders, GRAINCO FS, First Midwest Bank, and Pioneer. It was part of the efforts of the Grundy Education and Safety Golf Outing Committee. About 175 persons attended the two sessions, including farmers, Seneca FFA members, grain elevator employees, members of the public, and Grundy County fire personnel.
The training was conducted by the Safety & Technical Rescue Association, affiliated with GSI. It was designed to educate farmers and employees how to assist in a grain rescue operation, as well as how to prevent a grain entrapment. Through funds raised by the Education and Safety Committee last year ($15,150), a grain rescue tube was donated to each of the following: the Verona/Kinsman Fire Protection District, the Gardner Fire Protection District, South Wilmington Fire Protection District, Morris Fire Department, and the Coal City fire Department. The four remaining fire protection districts in the county will receive their grain rescue tubes later this year or early in 2013. Tasha Bunting is manager of Grundy County Farm Bureau. She can be reached at 815-942-6400.
Erica Frye, a member of the Grundy County Young Leaders Committee, is “rescued” by members of the Safety and Technical Rescue Association after being engulfed in corn during a training session last week at the Grundy County Highway Department. (Photo by Tasha Bunting)
Page 13 Monday, February 20, 2012 FarmWeek
from the counties
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DAMS — An “On the Road” seminar will be at 1 p.m. Friday at the John Wood Community College Ag Center at the Orr Farm. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 217-2227305 for reservations or more information. • A Viewpoint luncheon meeting will be at 11:30 a.m. Monday, March 5, at Sprout’s Inn Restaurant, Quincy. State Sen. John Sullivan (DRushville) 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. ROWN — An “On the Road” seminar will be at 1 p.m. Friday at the John Wood Community College Ag Center at the Orr Farm. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 217-7732634 for reservations or more information. UREAU — Farm Bureau will sponsor a seminar at 8:30 a.m. Friday at Wise Guys, Princeton. Michael Boehlje, Purdue University professor of the department of agricultural economics and center for food and ag business, will present “Landscape of Agriculture – Today and Tomorrow.” Lunch will follow the program. Cost is $20. Call the Farm Bureau office at 815-875-6468 for reservations or 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 10 percent off My Store on Wednesdays are available. Call the Farm Bureau office at 345-3276 for more information. FFINGHAM — Farm Bureau will sponsor an “On the Road” seminar at 7:30 p.m. Monday, Feb. 27, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 217-3422103 for reservations or more information.
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• Farm Bureau and Country Financial representatives will sponsor a farm estate and transfer planning seminar at noon Wednesday, Feb. 29, at the Farm Bureau office. Lunch will be served. James Hughes, Country Financial consultant, and Pam Apke with the LeFevre, Oldfield, Myers, Apke, and Payne Law Group, will be the speakers. Call the Farm Bureau office at 217-342-2103 by Wednesday for reservations or more information. ORD-IROQUOIS — Viewpoint breakfast meetings will be at 7 a.m. at the following dates and places: Tuesday, Feb. 28, Happy Days Diner, Roberts; and Tuesday, March 6, at Annabelle’s Diner, Gilman. Call the Farm Bureau office at 800-424-0756 for more information. • An “On the Road” seminar will be at 7 p.m. Tuesday, March 13, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office for more information. ACKSON — An AARP defensive driving program will be from 1 to 5 p.m. Monday and Tuesday, Feb. 27-28, at the Farm Bureau office. Deadline to register is Friday. Call Bob Tyson, AARP instructor, at 618-684-5643 for more information. • Jackson and Williamson Farm Bureaus will sponsor a market outlook program at 6 p.m. Thursday at Southern FS, Marion. Dale Durchholz, AgriVisor Services, will be the speaker. Call the Farm Bureau office at 618684-3129 by Wednesday for reservations or more information. ANKAKEE — The annual meeting will be at 5:30 p.m. Thursday, March 15, at the Hilton Garden Conference Center, Kankakee. Bob Stallman, American Farm Bureau Federation president, will be the speaker. Dinner will be served. A string quartet from Olivet Nazarene University music department will provide the entertainment. Cost is $15 for members and $30 for non-members. Call the Farm Bureau office at 815-932-7471 for reservations or more information. EE — The Governmental Affairs Committee will sponsor a “Meet the Candidates” night at 7 p.m. Tuesday, Feb. 28, at the Paw Paw Community Building. Candidates for District 2 county board, state’s attor-
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ney, and circuit clerk will attend, as well as candidates for representatives in the Illinois House 90th District and 16th Congressional District. • Deadline to return membership dues is March 1. If you did not receive your dues notice, call the Farm Bureau office at 8573531. IVINGSTON — Livingston County Farm Bureau Foundation college scholarships available are one $2,000 Foundation Elite scholarship and an Ethel K. Hoerner scholarship worth up to $1,500. Foundation/Ethel K. Hoerner scholarships for up to $1,500 are available for high school graduating seniors. Students must be majoring in an ag-related course of study. Deadline to return applications is 4 p.m. Tuesday, Feb. 28, to the Farm Bureau office. Call the Farm Bureau office at 815-842-1103 for more information. ERCER — The spring market outlook meeting will be at 6:30 p.m. Thursday at the Farm Bureau office. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will discuss federal crop insurance. Call the Farm Bureau office at 309-582-5116 for more information. • The Mercer County Farm Bureau Foundation will offer scholarships to members or dependents of Mercer County Farm Bureau members. College students or high school seniors who have been admitted to a college may apply. Scholarship applications are on the website {www.mercercfb.org}. Deadline to return applications is March 31. Call the Farm Bureau office at 309-582-5116 for 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. Michelle Payn Knoper {CauseMatters.com} will be the speaker. There will be several breakout sessions and speakers. Cost is $50, which includes breakfast and a luncheon buffet. Cost is $60 for reservations after March 1. Walk-in price is $75. Call the Farm Bureau office at 309-582-5116 for reservations or more information. ONROE — The Monroe County Farm Bureau Foundation high school senior scholarship applications are due by March 1. Applicants must be pursuing an agricultural-
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related field of study. Call the Farm Bureau office at 939-6197 or e-mail mcfarm@htc.net for an application. ONTGOMERY — Farm Bureau will host an open house from 1 to 3 p.m. Monday, Feb. 27, for retiring Country Financial agent Dennis Krueger, at the Farm Bureau office. He will retire with more than 30 years of service. • Montgomery County Farm Bureau Foundation will award six $1,500 scholarships to Montgomery County Farm Bureau members or dependents of a member who are pursuing an agricultural-related field of study. Deadline to return applications is noon Monday, March 12. Visit the website {www.montgomerycountyfb.com} for more information or an application. EORIA — Food Check-Out Day will be from 10 a.m. to 1 p.m. Thursday at the Peoria Kroger’s store on Sterling Avenue. Customers may “spin the wheel” game to learn more about agriculture and win Kroger gift cards. • A stroke detection health screening will be Monday, Feb. 27, at the Farm Bureau auditorium. Cost for four screenings is $100. Call 877-732-8258 for reservations or more information. IKE-SCOTT — An “On the Road” seminar will be at 1 p.m. Friday at the John Wood Community College ag building, Perry. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Adams, Brown, Cass-Morgan, Pike, and Scott County Farm Bureau will sponsor the seminar. TEPHENSON — Seats are still available for bus trips to Conklin’s Barn II Dinner Theatre in Goodfield on April 15; the June 5 Cubs vs. Brewers baseball game in Milwaukee; and the June 12-13 trip to Indiana Amish Country. Also the March 16 Gathering of the Green at John Deere convention in Davenport, Iowa; the Aug. 14 Illinois State Fair, and the Aug. 20 Cubs vs. Brewers at Milwaukee. Call the Farm Bureau office at 815-232-3186 for visit the website {www.stephensoncfb.org} for more information. • A preview program for the Jan. 22-Feb. 7, 2013, trip to Australia and New Zealand will be at 7:30 p.m. Thursday, March 15, at the Farm Bureau office. Jack
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Wideman, TriState Travel, will present the program. Call the Farm Bureau office for more information. • Farm Bureau will sponsor a basic cardiopulmonary resuscitation course from 9 a.m. to 12:30 p.m. Saturday, March 10, at the Farm Bureau office. Call the Farm Bureau office at 815-2323186 for reservations or more information. • Lime Rock Brown Swiss cheese is available at the Farm Bureau office. Call the Farm Bureau office for more information. • A defensive driving course will be from 10 a.m. to 3 p.m. April 17-18 at the Farm Bureau office. Doug Sommer will be the instructor. Lunch will be served. Call the Farm Bureau office at 815-232-3186 for reservations or more information. ERMILION — Farm Bureau and County Market will celebrate Food Check-Out Week through Saturday by collecting groceries for area food pantries. Collection points will be the Danville County Market stores and the Farm Bureau office. Farm Bureau members will bag groceries at the stores from 1 to 3 p.m. Friday. • The Young Leader Committee will sponsor a fun night for members and potential members Saturday at Jupiter’s, Champaign. Call the Farm Bureau office at 217-442-8713 for reservations and details. ABASH — Farm Bureau will sponsor an “On the Road” seminar at 5:30 p.m. Monday, March 5, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 262-5865 for reservations or more information. • Scholarship applications are available. A $500 scholarship will be awarded to a high school senior and a current college student who will pursue an ag-related field of study. Call the Farm Bureau office for more information. ARREN-HENDERSON — The Warren-Henderson Farm Bureau Foundation is accepting scholarship applications. Deadline to submit applications is Wednesday, Feb. 29. Call the Farm Bureau office at 309-734-9401 for more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all Farm Bureau members, contact your county Farm Bureau manager.
FarmWeek Page 14 Monday, February 20, 2012
profitability
Prepare now to face challenges in production ag for 2012 BY JEFF BUNTING
It’s time to think about the 2012 growing season. There’s still a lot of speculation on the number of corn and soybean acres that will be planted this year. Production agriculture faces many Jeff Bunting challenges many of us have never before seen. As you prepare for spring, here are some things to think about as you consider ways to make the year more profitable for your
farming operation: Corn following corn again was challenged in 2011. Even though the major issue was lack of rain, FS crop specialists worked jointly with their customers to implement a nitrogen management system. This system uses all sources of nitrogen, including nitrogen stabilizers, to keep the ammonium available to the corn crop and not lost to the environment, and nitrogen application incrementally applied over the course of the year instead of in a single application. The fall of 2011 was ideal for a first application
of nitrogen using this system. We recently learned of the spread of resistant weeds across Illinois. Our current weed-control strategy of glyphosate continues to be challenged in many areas of the state. Yet we cannot afford to lose glyphosate as a tool to control weeds. There are countless studies which show yield loss due to early-season weed competition, one reason a soil-applied herbicide helps maximize soybean yields. Another reason to use soilapplied herbicide is to preserve the sustainability of glyphosate in a weed-control system.
Increasing the rate of the soilapplied herbicide is an option to take the pressure off the glyphosate application. Your FS crop specialist is using these techniques and taking a proactive approach to manage and mitigate the spread of glyphosate-resistant weeds. We also learned insect pests can adapt to transgenic crops. It’s hard to argue the value of utilizing transgenic traits to control western corn rootworm. However, over the last couple years, this pest has caused isolated damage in Illinois as well as Iowa and Wisconsin.
Jeff Bunting is GROWMARK’s crop protection marketing manager. His e-mail address is jbunting@growmark.com.
Administration (EIA) also recently predicted the average price for a gallon of regular gasoline will rise from an average $3.53 per gallon last year
to $3.55 this year. EIA predicted there is a 1-in-4 chance the average gasoline price could exceed $4 per gallon in June. “I think profit margins will be thinner this year,” Steve Turner, who farms in Cass and Morgan counties, recently told FarmWeek. If the latest USDA estimate for production expenses is realized, this would be the sixth time in eight years total U.S. production expenses posted a double-digit increase of at least $10 billion. USDA this week will release more detailed economic forecasts for the ag sector at its annual Ag Outlook Forum in Washington, D.C.
In 2012, best management practices, including rotation, are being implemented; but with talk of increased corn acres, the use of soil insecticides to control corn rootworm is being used as well. Your FS crop specialist is available to help you develop programs that take your farming operation to the next level, allowing sustainability of our current products, while making your farming operation more profitable.
U.S. farm production expenses forecast to shatter previous record BY DANIEL GRANT FarmWeek
Farm margins are expected to tighten significantly this year compared to last year, based on recent projections. USDA last week forecast total farm production expenses this year will increase by $12.5 billion (3.9 percent), compared to 2011, to a total of $333.8 billion. If realized, this year’s total expenses would set a new record, smashing last year’s total of about $320 billion. “It’ll be a tighter year,” said Gary Schnitkey, University of Illinois Extension farm management specialist. “Still, if we have $5.40 corn and near-trend
yields, it should be a profitable year, just not as good as the last couple.” USDA last week projected net farm income for 2012 will total $91.7 billion, which would be a 6.5 percent drop from a year ago. Margins could be even tighter in Illinois. The U of I recently projected gross revenue on crop farms this year could decline by 15 percent. “Illinois costs are going up more on crop farms,” Schnitkey said. “Fertilizer (expense) is where we’re seeing the biggest jump.” Average fertilizer costs in Illinois are projected to jump 13 percent this year (from
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 $33.30-$61.00 $69.03 no longer reported This Week 105,297 *Eastern Corn Belt prices picked up at seller’s farm
Weighted Ave. Price $43.78 $69.03 by USDA Last Week 112,894
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $78.47 $80.94 $58.07 $59.90
Change -2.47 -1.83
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 125.00 123.00 2.00 125.25 123.00 2.25
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 $155.93 153.73 2.20
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 105-160 lbs. for 149.98-179 $/cwt. (wtd. ave. 158.17); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 02-09-12 38.6 16.5 29.0 02-02-12 37.5 17.1 40.4 Last year 35.7 24.9 27.6 Season total 794.4 690.5 741.0 Previous season total 1059.6 811.6 739.6 USDA projected total 1275 975 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
$150 per acre in 2011 to $170 per acre this year). Cash rents are projected to increase by 4.5 percent. The Energy Information
Lower natural gas prices could cap fertilizer market A significant drop in natural gas prices could help keep a lid on the fertilizer market, according to an industry expert. Joe Dillier, GROWMARK director of plant food, told FarmWeek last week it is unlikely farmers will see a major run-up in nitrogen fertilizer prices near-term similar to what occurred in 2008/09 when anhydrous ammonia shot up to $1,200 per ton. Anhydrous ammonia prices earlier this month in the state ranged from $800 to $855 per ton, the Illinois Department of Agriculture reported. “As we move forward, probably beyond this spring, cheap natural gas prices will come into play,” Dillier said. “The market is responding to attractive fertilizer prices and more production is coming on,” he continued. “We may have, after this spring, more supply-side competition, which probably will limit the price (of fertilizer) some.” Natural gas accounts for roughly 80 percent of the cost of ammonia production. The Energy Information Administration (EIA) recently reported the average price of
natural gas nationwide declined from $11.37 per thousand cubic feet in 2010 to $10.78 in 2011. This year, EIA projected natural gas prices will slip to an average of $10.71 as working inventories continue to set new seasonal high records. So why haven’t fertilizer prices come down at the same rate as natural gas? “Natural gas drove nitrogen (fertilizer) prices through the late 1990s and into the 2000s,” Dillier said. “But after about 2005 (post-Hurricane Katrina), the grain markets moved up and there was a lot more (fertilizer) demand around the world.” World fertilizer demand from the 1990s to 2005 increased by about 1 to 2 percent annually, according to Dillier. Since 2006, world fertilizer demand has increased by 3 to 5 percent per year. “Since 2005, fertilizer and nitrogen (prices) have been driven not by cost-push but by demand pull,” he added. The U.S. imports about 60 percent of its nitrogen needs from origins such as Canada, Egypt, the Persian Gulf, and Trinidad. — Daniel Grant
Page 15 Monday, February 20, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST USDA to estimate crop acres USDA this week hosts its annual Outlook Forum. While it covers a broad array of issues, the feature that most people in agriculture look forward to is USDA’s initial estimate on what the fundamental structure of the crops we will plant this spring might look like. In order of importance, the trade may be most interested in the corn forecast, the one for soybeans, and then for wheat. The trade also is interested in seeing the total plantings for the eight major crops for which supply/demand forecasts will be released, especially in the wake of production problems in South America and Ukraine this winter. Earlier this winter, and again in the spring planting supplement Feb. 6, we outlined the acreage that could be available for planting this spring. We argued that if weather is suitable during planting this year, we could see more acres planted to soybeans, as well as to corn and wheat. Corn is expected to be the primary beneficiary of additional plantings because the economics favor corn over other crops. They even favor planting corn in the Dakotas over spring wheat. It may be the sheer volume of bushels that each producer has to harvest that could limit individual corn plantings. Popular wisdom in the trade has 94 million to 95 million acres planted to corn this year. With the USDA’s baseline estimates projecting a 94 million level, we doubt the acres will fall below that range. And because anything above 93.5 represents a new modern record, we don’t expect USDA to project plantings above 95 million. Yield is more difficult to gauge, but with trend just above 160
bushels per acre, we wouldn’t be surprised to see USDA start just below that with additional acreage coming in lower-yielding areas. But we don’t expect an estimate below 157 bushels, either. Using that as a production base, we expect USDA will project ending stocks of 1.3 billion bushels or more. That’s where most of the trade is at today. Soybeans are a more difficult call because it’s more difficult to project where USDA expects plantings to fall. The baseline estimate was 74 million acres, but with the acreage available for planting, the acres at a minimum should be at last year’s 75 million. We wouldn’t be surprised to see USDA project up to a 1-million-acre increase. Even with average yields and higher demand, it’s going to be difficult not to project ending stocks below 250 million bushels. And it’s easy to build a case it could be above 300 million. Wheat plantings should be projected to increase about 3.5 million acres. Winter wheat plantings were estimated to have increased 1.3 million in January. And because wet conditions hit plantings so hard last spring, durum and other spring plantings should rise a little above 1 million acres each, resulting in a 3.5-million-acre total increase. Given generally better conditions in wheat areas than last year, USDA should use a higher yield than last year, somewhere in the 44.25- to 44.5-bushel range. Even with better demand next year, that should still leave ending stocks at 800 million bushels or more. Still, it’s important to remember these estimates are based on long-term demand models, and “human” insight into production expectations. The plantings in particular don’t always “marry up” well with the March planting intentions or the actual planting number. These estimates are a starting point only, nothing else.
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ü2011 crop: The Chicago May contract’s ability to hold the 50-day moving average keeps the door open for more strength. But the recent performance still suggests the minor trend has turned down. 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: The recent announcement that Ukraine traders have agreed to limit wheat exports to 1.7 million metric tons (mmt) in the February-July period could boost export demand for our corn. But the additional wheat availability from Australia could offset a portion of that. Expectations for a big crop forecast this week at the USDA Outlook Forum will continue to be a drag on prices. Volatility in financial markets remains a significant day-to-day influence. And the Greek issues may not be fully resolved until after the April elections there, potentially keeping the dollar firm.
Soybean Strategy
ü2011 crop: Chinese purchases added to Brazilian weather to lift prices to a new high. But the Chinese business is mostly new crop, tempering the ability to sustain rallies. The market triggered a 10 percent sale when May futures pushed through $12.50. Leave an order to add another 10 percent sale if May reaches $12.85. ü2012 crop: Use rallies to make catch-up sales. If it weren’t so early, we’d be willing to sell more at these prices. vFundamentals: Southern Brazilian weather and China dominated the market focus this past week. China signed agreements to purchase 8.6 million metric tons (317 million bushels) of soybeans last week. That was followed up with a reported purchase of 2.92 mmt (107 million bushels) on Friday, but 2.75 mmt was new-crop. China’s 2010/2011 purchases from
the U.S. were 24.4 mmt (896 million bushels). ûFail-safe: If May futures closes below $12.50, make the old-crop sale.
Wheat Strategy
ü2011 crop: The minor trend on Chicago May futures turned lower. May futures need to close above $6.45 to turn it up again. Use a rally back to $6.45 on Chicago May to wrap up sales. The carry in futures still pays for commercial storage, making spring hedge-toarrive contracts the best tool. ü2012 crop: Use a rally to $6.69 on Chicago July futures
to get sales up to recommended levels. vFundamentals: With the threat of cold weather in Russia, Ukraine, and European countries passing, there was little fundamental support for prices. The Australians raised the forecast for their crop to a new record, 29.3 mmt (108 billion bushels). Export business has improved with U.S. prices becoming competitive again with other countries. Over the past few weeks, Egypt has stepped up and made some purchases, much of which was sourced from the U.S.
FarmWeek Page 16 Monday, February 20, 2012
pERSpEcTIvES
Farmer exchanges reap long-term benefits The Chinese vice president recently visited the U.S. So what? you might ask. Well, there is more to this story. Chinese Vice President Xi Jinping is destined to become China’s next leader later this year. During his visit, he and President JOHN Obama disBLOCK cussed U.S.-Chinese relations. But that was not his most important meeting. He also flew to Muscatine, Iowa, and reconnected with a number of Iowa individuals and families that he met 27 years ago. Nearly three decades ago, Mr. Xi was a leader in a pig farming operation in China. He led an animal-feed delegation to Iowa,
toured farms, and spoke at the Muscatine Rotary Club. He stayed two nights as the guest of a local family, sleeping in their sons’ bedroom while the boys were off to college. That country hospitality reached out and established a bond with the next leader of China. We need to give credit to Mr. Xi for making the effort to reestablish his old relationship with those who had welcomed him 27 years ago on his first visit to another country outside of China. Mr. Xi, over those 27 years, has worked his way up in the ranks of the Chinese Communist Party and is now positioned to take over the leadership. Will his memorable experience in visiting the Heartland U.S.A. make it easier for the U.S. to work with China? The fact that he knows pigs is
bound to help. An interesting sidebar is that in 1978, I led an Illinois agriculture delegation to China and we visited farms. I will never forget that trip and the warm hospitality they extended to us. These kinds of exchanges can have a lasting effect on strengthening understanding and building enduring friendships. Hopefully, the U.S. and China can look forward to more cooperation and better relations in the future. After all, both countries have North Korea to worry about. And a positive trading relationship is vital. John Block, a Gilson native and former U.S. agriculture secretary in the Reagan administration, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His e-mail address is jblock@ofwlaw.com.
Little insects on the prairie influence the tallgrass landscape Once upon a time in the Midwestern United States there existed a major ecosystem — the tallgrass prairie. It covered some 142 million acres from western Indiana through Illinois and Iowa to the eastern TOM parts of NebrasTURPIN ka and Kansas. Prairie specialists have long debated the origin of the tallgrass prairies. Why wasn’t it covered with
trees, as was the case to the east, north, and south? The amount of rainfall probably was the reason for the latter. But the reason for the lack of trees is less obvious. It might be soil types, the influence of glaciations, moisture evaporation rates, or even prairie fires. How about insects? What was the insect fauna like on the tallgrass prairie? For one thing, all those prairie flowers required insect pollinators. Native bees were everywhere on the prairie; by some estimates nearly a thousand species existed in the tall-
Jasper County first to feature pork burgers
Editor: Regarding your Feb. 6 article, “IPPA builds demand for pork one burger at a time,” I wish to dispute the claim that the pork burger was created “in the late 1980s as part of the national “Other White Meat” campaign.” Here’s some research I uncovered while writing an article for the village’s newsletter, which is published quarterly by the Sainte Marie Foundation, a charitable organization devoted to preserving the history of the Southeastern Illinois village (population 250): The pork burger probably was first created at Hartrich’s Meat Processing Plant in Sainte Marie. This little-known fact emerged in my interview with
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grass prairie region. Most prairie bees are what scientists call solitary bees, not social bees such as bumble bees that live in a colony. Bumble bees were certainly common on the prairie. Honey bees, on the other hand, were absent until European settlers transported them to North America. Two of the most common types of insects associated with prairie habitats belong to the orders Hemiptera and Diptera the true bugs and the flies. All true bugs and most flies are equipped with piercing and sucking mouths. That means
they pierce their plant or animal food and suck out juice, such as sap or blood, for their use. The insect associated more than any other with prairie habitats is the aptly named grasshopper. Grasshoppers have chewing mouthparts adapted to consume the rather rough leaves of prairie plants and do well in high-temperature habitats. But the most famous prairie grasshopper of all did not live in the tallgrass prairies. I’m referring to the famous Rocky Mountain locust, a type of migratory grasshopper, which
LETTERS TO THE EDITOR
owner Tony Hartrich and was confirmed by Larry Casey, retired Jasper County Extension adviser. Casey wanted to do a fundraiser for the Jasper County Teen Center in the late 1960s, so he worked with Harold Hartrich (Tony’s father) to develop a pork patty for teenagers. They did not tell the kids what kind of meat it was until the end of the fundraiser — and after that everyone wanted pork burgers! “If you go two counties out from Jasper County, you won’t find pork burgers,” says Casey, “although one other county claims they created the delicacy. But I am sure that Hartrich’s was first!” Today, Hartrich Meat Processing’s most popular and widely selling item is A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701
pork burgers (I like the name “DaBurger” that was cited in your article!), and everyone who grew up in Sainte Marie loves them. You won’t find a better pork burger anywhere. They will be a featured item at Sainte Marie’s quartoseptcentennial (175th) celebration on June 29 and 30, 2012. I am happy to see that DaBurgers are being sold at Chicago events. Maybe they eventually will be in my local grocery store. But I bet they will not be as good as those from Hartrich Meats! Patricia Reis, Chicago resident and president and founder of the Sainte Marie Foundation, Sainte Marie ***
Says wind farms not energy, cost answer
Editor: ”A case against wind turbines” (FarmWeek, 2/6/12) was insightful. Additional facts could be cited. First, on costs, while some jobs are created by wind turbines/farms, far more jobs are destroyed because of the resulting higher costs of electricity. Both natural gas and coal can pro-
flew from the foothills of the Rockies onto the Great Plains. This great cloud of insects destroyed all the vegetation in its path. But no longer. The Rocky Mountain locust appears to be extinct. Both the locust and the tallgrass prairie are part of an American story that begins, “Once upon a time, there was a big prairie with some large flying grasshoppers ... .” Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.
duce electricity at one-half to one-quarter the cost of wind energy. Second, on environmental impact, because of the intermittent nature of wind energy, backup supply (coal or natural gas generation facilities) are required. These are environmentally less efficient when used on a part-time basis, effectively killing any CO2 reduction from using wind energy. All these factors have led Patrick Moore, co-founder of Greenpeace, to call wind farms destroyers of wealth and negative to the economy. Rather Mr. Moore calls for “responsible environmentalism.” The latter does not include wind turbines. Finally, while a wind farm increases the rural Illinois county’s tax base, it costs the nation far more in lost jobs, competitiveness, and economic growth because wind energy replaces natural gas and coal at double and four-times the cost. On the other hand, corn-based ethanol replaces more expensive crude oil and is a win locally and nationally in lowering costs, generating jobs, and enhancing economic growth. Rod Lemon, Monmouth