Farmweek february 16, 2015

Farmers have until Feb. 27 to update yields and reallocate base acres at local USDA offices. page 8

U.S. House OK’s Section 179 break Monday, February 16, 2015

BY DEANA STROISCH FarmWeek

The U.S. House of Representatives Friday approved permanently extending Section 179 small business deductions at the $500,000 level.

The 272-142 vote in favor of HR 636 — America’s Small Business Tax Relief Act of 2015 — came after Illinois Farm Bureau issued an action request last week urging members of Congress to Richard Guebert Jr. pass the measure.

“Once again, the House has voted overwhelmingly to make an important tax provision permanent, and this early action is what our annual meeting delegates wanted to see,” said IFB President Richard Guebert Jr. “That several hundred Farm Bureau members took time to make contacts and tell their stories really helped drive home the importance and urgency of this issue to our congressional delegation.”

The legislation now heads to the Senate and could ultimately

face a presidential veto. The White House opposes the bill, arguing the tax break would add $79 billion to the deficit during the next 10 years.

IFB leaders believe a permanent tax extension would provide certainty for farmers and small business and allow economic expansion.

According to a “Sense of the Delegate Body” resolution passed during IFB’s annual meeting in December, “failure to extend these provisions represents a tax increase, and repeated failure to extend them permanently injects instability and uncertainty into the economy and weakens confidence in the job market.”

In December, Congress passed a temporary, retroactive extension that applied to purchases from Jan. 1 to Dec. 31 of last year. The deduction limit dropped back to $25,000 as of Jan. 1.

“Illinois Farm Bureau urges the U.S. Senate to take up the House bill and permanently address Section 179 sooner rather than later,” Guebert said. “We really hope it doesn’t come down to another one-year, eleventh hour retroactive extension of last year’s provisions. That’s just counterproductive.”

ALL IN THE FAMILY

Three sections Volume 43, No. 7

Tim Jolly, right, and his wife, Cheryl, plan to restore their two-story farmhouse in rural Chenoa and pass it on to their son, Andrew, who has an interest in farming. See story on page 4. (Photo by Cyndi Cook)

IFB to host Nutrient Loss Reduction Strategy webinar Illinois Farm Bureau will host a March webinar on a statewide strategy to reduce levels of nitrogen and phosphorous in Illinois rivers, lakes and streams.

The Nutrient Loss Reduction Strategy offers a suite of practices and programs to reduce nutrient losses in urban and rural areas from point sources that include specific sources, such as sewage treatment plants, and nonpoint sources that are diffuse, such as runoff from farm fields, and residential and urban areas.

The webinar will start at 8 a.m. March 12 and feature Lauren Lurkins, IFB director of natural and environmental resources. All Farm Bureau members are encouraged to be involved and register in advance. Please use the following link to register before March 12 {http://bit.ly/1KU4mgR}.

For those unable to participate, the webinar will be recorded and posted later on the IFB website at {www.ilfb.org/resources/ill-nutrientloss-reduction-strategy.aspx}.

Senators seek end to Cuban trade embargo

BY DEANA STROISCH FarmWeek

Periodicals: Time Valued

If you don’t have spring planting fever, you will after reading the special section inside, featuring stories on weather and inputs.

The days of open outcry trading appear numbered as electronic trading rules grain markets. page 14

The longstanding trade embargo with Cuba would end under legislation introduced last week by a half-dozen U.S. senators, including Illinois Democrat Dick Durbin.

The Freedom to Export Cuba Act of 2015, if signed into law, would make all legal U.S. products available for export to Cuba for the first time since 1961. It also would repeal the United States’ prohibition on Cuban imports and remove Cuba’s designation as a “state sponsor of terrorism.”

“Lifting the trade embargo will open new markets for businesses and farmers in

Illinois and across America,” Durbin said.

“But normalizing trade and travel relations with this country just 90 miles off our coast is about more than that — it’s about opening Cuba to new ideas, new values and improved human rights that our 50year-old policy of isolation could not achieve.”

The bill would not repeal human rights, reporting requirements or property claims provisions of previous legislation. It also doesn’t address the travel ban, which could be repealed under other pending legislation.

In addition to Durbin, co-sponsors include Mike Enzi, R-Wyo.; Jeff Flake, RAriz.; Amy Klobuchar, D-Minn.; Patrick

Leahy, D-Vt.; and Debbie Stabenow, DMich.

Illinois Farm Bureau supports efforts to normalize relations between the two countries with the goal to ultimately end the trade embargo. A group of Illinois farmers traveled to Cuba in 2012 as part of IFB’s annual Market Study Tour.

According to analysis by Texas A&M University, Illinois ranks 6th in the nation in terms of “lost opportunities” to agriculture because of the Cuban embargo.

“We said it in 2012 upon our return from Cuba and we’ll say it again today. Our farmers support an end to the embargo against Cuba” said Adam Nielsen, IFB’s national legislative director. www.facebook.com/illfarmbureau

Quick Takes

FarmWeek • Page 2 • Monday, February 16, 2015

COOL LAWSUIT DROPPED — Industry opponents to the U.S. country of origin labeling (COOL) law dropped their longstanding case against USDA last week.

This ends the lawsuit American Meat Institute (AMI) et al., including domestic and international meatpackers and trade groups, originally filed in July 2013 that sought to strike down the labeling law that informs consumers where the meat they purchase was born, raised and slaughtered.

U.S District Court judges ruled against AMI in three rounds of decisions. AMI chose not to appeal the rulings to the U.S. Supreme Court.

The suit alleged the COOL law violated meatpackers’ constitutional right to free speech by requiring meat processors to affix the labels. It also alleged USDA had overreached its statutory authority by requiring retailers to affix COOL labels.

TALK ABOUT MONEY IN RELATIONSHIPS — If you neglected to discuss money matters with your Valentine, perhaps today’s the day. Nearly half of Americans responding to the latest COUNTRY Financial Security Index survey said they prefer the “sooner-is-better” approach. They talk money immediately (7 percent) or at least no later than within the first six months of dating (41 percent).

Younger generations said they discuss finances later in their relationships with just 12 percent of those under 30 talking about money immediately or within the first few weeks of a relationship. In contrast, for daters over 50, there’s at least a 21 percent chance there will be talk of finances within the first few weeks of a relationship.

Seventy-seven percent of Americans said debt comprises an important factor for singles to consider when dating. A smaller, but still significant percent of Americans (48 percent), think singles should be concerned if their romantic interest has bad credit.

IPM CENTER RECEIVES FUNDING — The North Central Integrated Pest Management Center, led by the University of Illinois, will receive $4 million during the next four years from USDA’s National Institute of Food to develop and promote research and extension activities addressing critical integrated pest management (IPM) needs.

In addition to providing an information network, the center provides funding for competitive grant programs.

The center also helps create and distribute national pest alert fact sheets about current insect, pathogen or weed problems.

The funding will support new signature programs, including an urban agriculture IPM project, resistance management and IPM as it relates to indoor air quality control.

For more information about the IPM center, visit {ncipmc.org}.

(ISSN0197-6680) Vol. 43 No. 7 February 16, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

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

Ed funding reform groundswell grows

BY KAY SHIPMAN FarmWeek

A Statehouse drumbeat to change how Illinois distributes school funding continues.

Last week, Sen. Jason Barickman, R-Bloomington, unveiled his concept of an “evidencebased funding model” to replace the existing state funding formula in a Capitol press conference. Barickman was joined by Sen. Andy Manar, D-Bunker Hill, who is also sponsoring education funding reform proposals.

“This is the year we can find common ground,” Barickman said of the school funding reform groundswell.

Barickman said his proposal “speaks to the formula distribution funding mechanism,” and would provide districts with flexibility to meet local needs. The bill also would include a holdharmless component, which generally means a district’s funding doesn’t decrease.

Asked to explain how his proposal would work, Barickman used an example of student-teacher ratio. If evidence proves the ideal student-teacher ratio for kindergarten through third grade is 15 to one, then state funding would “encourage but not mandate” that, Bar-

ickman said, adding, “Districts would have flexibility to meet local needs.”

Illinois Farm Bureau is “reviewing the proposal to measure its impact and review the grassroots policy established by our members to see how it and the proposal align,” said Kevin Semlow, IFB director of state legislation.

“We look forward to continuing the dialogue with Sens. Manar and Barickman, and the coalition partners, on bringing reform to our elementary and secondary education systems,” Semlow continued.

During the press conference, Manar put aside “either/or” assertions that pitted his proposal against Barickman’s.

“We have to have all ideas on the table,” Manar said. “This isn’t a conversation of conflicting ideas ...

This is one where all ideas are welcome.”

A statewide education plan, known as Vision 20/20, proposes the state adopt an evidence-based funding model that assigns appropriate foundation funding levels for individual districts. Barickman referenced Vision 20/20 that was developed by a coalition of education and school official organizations.

GM food labeling resurfaces in spring session

BY KAY SHIPMAN FarmWeek

A bill mandating food labels denoting any ingredients from biotechnology crops re-emerged in the General Assembly.

SB 734, sponsored by Sen. David Koehler, D-Peoria, would require labels listing or identifying any food ingredient or ingredients that were genetically engineered and sold retail. Illinois Farm Bureau opposes the bill, which has not been assigned to a committee and includes provisions for violations, damages and attorney fees.

“It’s irresponsible legislation,” University of Illinois Professor Stephen Moose, who specializes in crop genomics, told FarmWeek. “There are no risks associated with GM crops that are not already associated with

regular crops ... There are no differences.”

In 1992, the Federal Drug Administration ruled genetically engineered foods are not “materially different” from their traditional counterparts and therefore do not have to be labeled.

“A mandatory label on foods containing ingredients from genetically modified crops is unnecessary because there is no additional safety concern for consumers,” said Bill Bodine, IFB associate director of state legislation. “These foods are proven to be as safe as foods that do not contain ingredients from genetically modified crops. A mandatory labeling requirement will only drive up the cost of food and create confusion for consumers.”

Mark Denzler of the Illinois Manufacturer’s Association, which also opposes SB 734, added the

proposal “will create undue hardship on food manufacturers and retailers.”

“Illinois is not an island,” Denzler continued. “We compete with other states and countries.

Putting this only on Illinois companies makes it more difficult for them to do business.”

Moose noted such legislation also could set Illinois up for legal action similar to the situation faced by the state of Vermont.

“Vermont now is in federal court” facing legal challenges on its GM labeling law, Moose said.

The Vermont law would require that processed foods made entirely or partially with genetic engineering be labeled “produced with genetic engineering,” or “partially produced with genetic engineering” or “may be produced with genetic engineering.”

Farm bill: Your questions answered

Time’s running out.

Landowners have until Feb. 27 to decide whether to reallocate base acreage or update payment yields.

Farmers can choose between Price Loss Coverage (PLC) or Agricultural Risk Coverage (ARC) at the county or individual level through March.

In addition to speaking at informational meetings across the state, Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, answers FarmWeek reader questions each week about the decisions farmers face. This week’s question: Q: I am the owner of a very small farm (20.65 acres). I don’t farm the

en year, but none on planted acres.

land myself. I have utilized tenant farmers/ operators over the past few years. Could the choices I make in any way limit the number of acres my operator may till and plant?

A: No. Program choices do not limit planting decisions. Limitations exist on the amount of payments farmers can receive in a giv-

Editor’s note: U.S. Ag Secretary Tom Vilsack urges farmers to choose between ARC or PLC as soon as possible. He recently told Agri-Pulse that only 75,000 to 80,000 farmers have made the decision. About 1 million farmers qualify for the programs.

While farmers have until March 31 to make the decision, Vilsack noted they can make a decision now and still have time to change their election if new information causes them to rethink their choice.

If you have a question, please email it to dstroisch@ ilfb.org, or mail it to: Farm Bill Questions, Deana Stroisch, 1701 Towanda Ave., Bloomington, Ill. 61701.

Q&A:

Illinois Senate Agriculture and Conservation Committee chair

FarmWeek: As chairman, what tone do you hope to set for the Agriculture Committee this session?

Sen. John Sullivan: It’s a new era in Springfield with a new governor and many new agency directors. Governor Rauner has appointed former Illinois Farm Bureau President Philip Nelson as the director of the Illinois Department of Agriculture, and I look forward to working with Philip and the administration to ensure that agriculture continues to be a priority for the Illinois Senate and General Assembly.

Traditionally, the Agriculture Committee has not been a partisan committee and as the chairman of the Agriculture Committee, that tradition will continue. The vast majority of the issues and legislation we work on in this committee are handled through an “agreed bill” process.

This process brings proponents and opponents to the table, prior to committee hearings, for negotiations to reach a consensus on an issue that will produce an agreed-upon bill.

The benefits of this process are obvious, and it encourages all stakeholders to work together.

FarmWeek: How do you plan to apply your knowledge of agriculture and conservation to your work as chairman?

Sullivan: As the only farmer/legislator in the Illinois Senate, it’s been an honor and privilege to be a voice for agriculture.

It makes perfect sense for me to combine my practical, hands-on experience with agriculture and my lawmaking skills, and use that knowledge to craft legislation, educate my colleagues and speak for the farming community both in

the Agriculture Committee and on the floor of the Senate.

FarmWeek: What issues do you anticipate to come before your committee, and what issues that may impact agriculture do you anticipate this session?

Sullivan: I believe many of the issues to come before the committee will not be new. For example, • The budgetary concerns of the Department of Agriculture will be a major concern, and specifically, how we maintain adequate funding for agriculture programs given the extraordinary fiscal challenges of the state.

• A GMO labeling bill has been reintroduced.

• Regulatory changes to how seed, feed, fertilizer, chemicals and livestock are handled will continue to be introduced and debated.

These issues will continue to come from the local, state and national levels.

FarmWeek: What message do you have for Illinois farmers and the state’s agriculture industry? How should farmers work with the General Assembly?

Sullivan: My message to the agriculture community is: Get involved. Educate yourselves on the issues that affect agriculture so you can speak knowledgeably and factually about the issues.

As the number of farmers continues to shrink and as more and more generations become further removed from the farm, it becomes imperative that we speak with a unified voice.

Kay Shipman, legislative affairs editor, submitted questions to Sen. Sullivan. FarmWeek plans to profile the Democrat and Republican leadership of the Illinois Senate and House Agriculture and Conservation Committees.

Get to know John Sullivan Job: Democrat senator representing 47th District and assistant majority leader Age: 56 Years served: 2003 to the present Background: Lives on family farm near Rushville, partner in family auction and real estate business, graduate of Quincy College

John Sullivan

Familiar face: Long-time volunteer auctioneer for the live auction to raise money for the IAA Foundation during the Illinois Farm Bureau annual meeting

NREC funding focuses on knowledge gaps

Page 3 • Monday, February 16, 2015 • FarmWeek

BY KAY SHIPMAN FarmWeek

Illinois farmers receive a knowledge-based bang for their buck in the research and education projects funded by a fertilizer assessment.

The Illinois Nutrient Research and Education Council (NREC) recently announced 20 projects that will share $2.43 million this year.

NREC receives money from a 75-cent assessment per ton of fertilizer sold.

“The (NREC) money will produce cutting-edge technology and information they can use in their fields,” said Illinois Farm Bureau Director Dale Hadden of Jacksonville, who represents IFB on the 13member NREC. To determine project funding, Hadden said he focuses on projects that will produce practical results, which can be applied on farm acres.

Along with farmers, NREC voting members include representatives of the fertilizer industry and the Illinois Department of Agriculture.

Nonvoting members include representatives of the Illinois Environmental Protection Agency and environmental groups.

Several new projects as well as ongoing projects will study nitrogen fertilizer uses, losses and management, including those for turfgrass. The Illinois State University (ISU) and University of Illinois project will produce a best management practice (BMP) guide for turfgrass and specialty fertilizers.

Hadden noted the per-ton assessment is applied to sales of turfgrass fertilizer, but unlike agriculture, the turfgrass industry lacks BMPs for nutrient management.

The newly funded research projects include: • A U of I study evaluating the effectiveness of cover crops and bioreactors to reduce nitrogen losses. The onfarm project involves a farmer cooperator who already installed bioreactors.

• A U of I study will provide insights into conversion of ammonium to nitrate and crop nitrate uptake by comparing different fertilizer applications, including nitrification inhibitors.

• A new U of I project will compare nitrous oxide emissions from different nitrogen application methods and correlate efforts to reduce emissions via different management systems.

• A new project by The Wetland Initiative will determine if wetlands that are part of the state Nutrient Loss Reduction Strategy (NLRS) can be practically implemented to reduce nitrogen losses. Wetlands in ag

Illinois State University agriculture graduate student Richard Roth examines a solar-powered automated water sampler used in a research trial funded by the Illinois Nutrient Research and Education Council.

(FarmWeek file photo)

production systems will be demonstrated.

• Southern Illinois University-Carbondale (SIU-C) researchers will study the impact of cover crops and different tillage systems to reduce nitrogen leaching.

• Illinois Certified Crop Advisers and ag retailers will be taught the NLRS goals and

FarmWeekNow.com

Visit FarmWeekNow.com to learn more about the new projects being funded by NREC.

prepared for a new nutrient certification designation. All input suppliers will be educated about a new 4R code of practice.

• The Livingston County Soil and Water Conservation District and the Conservation Technology Information Center will evaluate water quality in the Indian Creek Watershed to determine the impact of existing conservation practices.

Ongoing research projects whose funding continues include: • Year three of a five-year U of I study of cover crops on university research sites and farms throughout the state.

Weather challenges made cover crop establishment difficult the first two years.

• An ISU survey of farmers to learn their current nitrogen management practices and how they make nitrogen decisions.

• The second year of an ISU project to study water quality in field tiles and cover crop influences on nutrient losses.

• A U of I study on a Douglas County farm to determine

water quality impacts of different nitrogen management techniques on tile-drained fields. The treatments are aligned with the ISU field tile study.

• The second of a threeyear U of I study of soil physical, chemical and biological attributes in all climate zones to determine long-term productivity and sustainability of corn-soybean rotations.

• The second year of a U of I project to update data on phosphorous and potassium removal by corn, soy and wheat crops.

• The third year of an SIUC project to study late nitrogen applications to reduce nutrient losses and improve corn yields.

• The second year of an ISU study evaluating cover crop and water quality impacts on a stream tributary to Lake Bloomington.

• The second year of a U of I project studying residue management, tillage and nitrogen response in corn.

• U of I study of on-farm nitrogen rate trials with collected data used to improve the Maximum Return to Nitrogen (MRTN) online rate calculator.

• U of I study of perennial crop buffers that capture nutrients and produce a marketable specialty crop.

• Council on Best Management Practice’s Keep it for the Crop (KIC) Education and Outreach Program will continue to focus on education to farmers, agribusiness, general public and youth; cover crop training with the addition of a fourth regional cover crop specialist; on-farm demonstration projects; communication; and collaboration.

Living legacy

FarmWeek • Page 4 • Monday, February 16, 2015

Couple restores centennial farmhouse for future family

T

BY DEANA STROISCH FarmWeek

he broken bones.

The dirt road where they learned to drive in a beat up 1954 station wagon. The coal-fired furnace the brothers had to fill each night. The holidays spent surrounded by family.

Brothers Tim and Jeff Jolly have fond memories of growing up on their family’s rural Chenoa farm.

Rented out for the past 20 years, the two-story house and surrounding 80 acres were recently purchased by Tim and his wife, Cheryl. The couple plans to restore the farmstead to its original condition.

The goal: To keep the farm in the family, as it has been for more than 150 years.

“Our great-great-grandfather (Frederick Jacobs) and everybody since has tried to make sure this has been something that can be passed down through the family,” said Tim Jolly, a fifth-generation farmer.

“We just feel so blessed to be able to get back on the farm.”

Property records show the land was purchased in 1864 by

brothers, Frederick and Christian Jacobs. The house was built in 1917. Their great uncle and aunt, Herb and Elma Jacobs, lived there. Herb told stories about riding to Weston to pick up lumber for the house with a horse and a cart.

Back then, they farmed with horses. The children would have to pick a load of corn by hand and load the wagon before going to school.

“It was quite an operation,” recalled Jeff Jolly, who today works in mechanical maintenance at Illinois Farm Bureau.

Herb Jacobs had three brothers and a sister. He and his brother, Elmer, were close and often hung out together on the farm even after Herb retired from farming in the early 1970s.

Elmer was the grandfather of Jim Jacobs, Illinois Farm Bureau’s general counsel. Jim grew up about a half mile east of the house.

“My two sisters and I were very lucky to grow up on our family farm,” said Jim. “And we all recognize and appreciate how much our family’s long connection to agriculture has influenced our own lives.”

®

Above, From left, Tim Jolly, Jim Jacobs and Jeff Jolly look at old photographs of their family’s rural Chenoa farm. Tim and his wife, Cheryl, plan to restore the home and keep it in the family as it has been for more than 150 years. Left, Frederick Jolly documented the family’s German heritage in a book called, “Our Family Heritage.” Go to FarmWeekNow.com to see more photos. (Photos by Cyndi Cook)

Herb and Elma Jacobs moved to Chenoa in the 1960s. Russell “Russ” and Gwendolyn Jolly, their nephew and niece, moved into the home with their four

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sons, Fred, Jeff, Tim and Tom. Russ worked at Eureka Williams at the time and eventually took over farming the family ground in the early 1970s. He worked on his own equipment and created a motorized bean walker.

His sons baled hay, shelled corn and cleaned out barns for other farmers. That helped spark an interest in farming for Tim, who participated in FFA when he was young.

Tim married Cheryl in 1989. They have four children: Jacob, Robert, Christine and Andrew. In 1992, the couple bought their first 40 acres of farmland and eventually took over farming the land his grandparents purchased in the 1930s.

Today, they farm 291 acres.

They also work as full-time rural mail carriers.

“It’s in my blood,” Tim said of farming. “I’ve loved it all my life.”

Farming, he said, allows him to be his own boss and lets him “call the shots.”

“I think mostly I just love to work outdoors doing the things that I remember growing up doing with my grandfather and my dad and all the family. I just enjoy the work.”

His son, Andrew, enjoys the work as well and plans to follow in his father’s footsteps.

He currently attends Heartland Community College in Normal.

Tim and Cheryl plan to move into the house once it’s restored. They currently live four miles down the road.

Tim admits that restoring the house is a “big task.”

Thankfully, he said, the house remains in good shape structurally.

He hopes to have the house ready in time to host the family’s Christmas this year.

The family’s German heritage also has been documented in a book called “Our Farming Heritage,” assembled

by Tim’s brother, Fred.

“The book is homage to those who have come before us,” he wrote.

“They endured a country ravaged by the Civil War; two World Wars to end all wars with the resulting stringent rationing; the Great Depression, during which they sometimes burned ears of corn for heat; severe droughts; periods of too much rain; insect infestations; and severely depressed grain prices.

“It is indeed a true testament to their perseverance, stewardship and love of family and farming that almost 160 years hence, the farm that our ancestors established remains in our family.”

Editor’s note: Illinois Farm Bureau celebrates its 100th year in 2016. If you have a centennial farm story to share, contact Chris Anderson at canderson@ilfb.org.

Page 5 • Monday, February 16, 2015 • FarmWeek

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Increase in pork, poultry supplies pressure export market

FarmWeek • Page 6 • Monday, February 16, 2015

BY DANIEL GRANT FarmWeek

A drop off in the number of porcine epidemic diarrhea virus (PEDV) cases this winter compared to last year provides a great deal of relief for many producers.

But, as pork production ramps up, farmers now must deal with expectations of larger meat supplies and lower hog prices.

“Profitability could be an issue this year,” Curt Zehr, president of the Illinois Pork Producers Association, told FarmWeek at the Illinois Pork Expo in Peoria. “Prices have dropped from $130 per hundredweight down into the $60s.”

Pork producers were fortunate about one aspect of the PEDV outbreak last year as the virus didn’t interrupt trade. Pork demand remained strong and prices raced to record highs, which helped offset the loss of about 7 million piglets nationwide to PEDV. The lack of PEDV cases so far this year could boost pork output about 3 percent compared to last year, according to Brett Stuart, market analyst

with Global Agri-Trends.

Meanwhile, pork producers began an expansion phase in the past year, which could boost output another 2 percent. The U.S. breeding inventory as of Dec. 1 totaled 5.97 million head, up 4 percent, while the number of market hogs (60.1 million head) increased 2 percent, according to USDA. “The impact of dealing with PEDV is huge. Thus far, there’s been an incredible improvement,” Stuart said. “We’re going to have probably 3 Brett Stuart percent more pigs just without PEDV, not counting expansion.”

The bump in pork production coincides with increased production of another white meat, chicken. USDA projects chicken production this year could reach an all-time high 39.21 billion pounds.

“We could be in a situation where we have 5 percent higher pork production (and record chicken production),” Stuart

said. “It really puts pressure on the international market.”

The U.S. exports about one-quarter of pork produced here. But some obstacles could limit expansion of international sales in the months ahead.

A port strike on the U.S. west coast created a backlog of shipments. Fifty-seven percent of pork exports are oceangoing and 39 percent of those are shipped from the West Coast, according to Allendale Inc. Elsewhere, the value of the dollar continues to strengthen, which makes U.S. ag products

more expensive in the world market.

But, in the European Union, pork prices declined and increased competition for U.S. pork exporters.

“There’s cheap EU pork all over the world. It’s making it tough (to boost U.S. pork exports),” Stuart said. “Europe took 7 percent of the Japan market and 10 percent of (South) Korea. Those are two of our real key markets.”

USDA last week cut its projection of U.S. pork exports for 2015 by 430 million pounds, which, along with production increases, implies

that an additional 1 billion pounds of pork will need to be absorbed by the domestic market, according to the CME Group’s Daily Livestock Report.

On the bright side, Mexico continues to boost imports of U.S. pork and actually surpassed Japan last year as the top importer of U.S. pork in terms of tonnage.

Stuart also expects pork demand to remain strong in Asia, with growth potential in China.

“The long-term trend (for international pork demand) still looks good,” he added.

“But we’ve had a fair amount of normal to above-normal temperatures so far this year. I think we’ll see that back and forth continue.”

Anderson believes the current cold snap could be shortlived with a return of warmer temperatures in the weeks ahead.

“I’m looking for a rebound to at least near normal to above-normal temperatures the last half of the month and into March,” he said.

Warmer temperatures and adequate soil moisture across much of the state point to a good start to the growing season in Illinois.

“I don’t think there will be a real slow start to (spring) fieldwork this year like we’ve seen the last few years,” Anderson said.

“There’s a string of drought level one (readings on the U.S. Drought Monitor) in parts of the Delta and lower Ohio Valley in Kentucky and Tennessee,” he continued. “But I don’t think

that will be a real chronic feature.”

The main issue with soil moisture in the U.S. remains in California, Arizona and New Mexico, along with parts of Colorado, Utah, Oregon and Nevada that are in prolonged drought, according to USDA’s National Water and Climate Center.

Unfortunately, most of those areas haven’t received usual amounts of snowpack to recharge moisture levels.

“California is coming out of what’s typically the wet season,” Anderson said. “It doesn’t look real good for those folks out there.”

In the Midwest, Anderson believes weather this season will be driven by conditions in the Pacific Ocean, which currently favor warmer-thannormal spring temperatures and near-normal precipitation.

For a closer look at the spring planting forecast in Illinois, check out the special FarmWeek Spring Planting section in this issue.

Could this arctic blast be winter’s last gasp?

BY DANIEL GRANT FarmWeek

A return of frigid temperatures in recent days reminded Midwesterners that winter’s not over yet (spring officially arrives March 20).

But the brunt of winter weather conditions could be winding down based on a forecast from Bryce Anderson, DTN ag meteorologist.

“The upper air pattern is a little cold now,” Anderson told FarmWeek late last week.

USDA trims ending stocks of corn, soybeans

Page 7 • Monday, February 16, 2015 • FarmWeek

The boost in ethanol demand was partially offset by a 25 million bushel reduction in feed and residual use of corn.

The 35 million bushel jump in soybean demand also was partially offset.

In that case, USDA raised imports by ‘The corn market now looks for export bean 10 million demand to improve going forward...’ bushels.

“That’s a comfortable — Brian Basting carryout (for Advance Trading, market analyst corn), up about 50 percent from last year,” Basting said. “The corn market now looks prices, a net ethanol export trade balfor export demand to improve moving ance and possible increases to Renewforward, not exceptionally strong, but able Fuel Standard mandates all supstronger than we’ve seen.” port strong corn demand from the Good predicts corn exports could ethanol industry.

“Ethanol use of corn could increase grow from 1.75 billion bushels this year to 1.85 billion next year. USDA last modestly from the projected level of week reported a slight increase in Chi5.175 billion bushels this year to 5.225 nese corn imports. billion bushels next year,” he said.

ethanol margins, but also are expected to boost total fuel consumption this year.

Darrel Good, University of Illinois Extension economist, said increased gasoline demand spurred by lower

BY DANIEL GRANT FarmWeek

USDA last week trimmed ending stocks of corn and soybeans as demand for both crops remains strong.

Ending stocks of corn total 1.827 billion bushels, down 50 million bushels from a month ago, while soybean stocks decreased 25 million bushels to 385 million bushels.

The downturn in ending stocks occurred due to an uptick in demand.

USDA last week raised the amount of corn used for ethanol by 75 million bushels.

Soybean demand also increased as USDA raised soy exports by 20 million bushels and soy crush by 15 million bushels.

“Ethanol margins are dropping, but remain profitable,” Brian Basting, market analyst with Advance Trading, said during a teleconference hosted by the Minneapolis Grain Exchange.

Lower gasoline prices cut into

USDA currently pegs U.S. soybean exports at a record 1.79 billion bushels.

The slight increase in corn and bean demand likely won’t have much impact on either market, though, due in part to larger stocks compared to last year and an expected slowdown in U.S. soybean exports.

USDA left its 2014-15 season average price for soybeans unchanged at $9.45 to $10.95 per bushel and slightly tweaked the corn price range to $3.40 to $3.90.

The season average price of wheat declined 15 cents on the high end as USDA lowered wheat exports 25 million bushels and raised ending stocks 5 million bushels to 692 million bushels.

“The world numbers continue to reflect ample supplies of wheat,” Basting said. “The market focus more and more will be on the northern hemisphere” as the winter crop breaks dormancy and farmers plant the spring crop in coming months.

South America could cut into U.S. soy exports by March Dryness issues in Brazil apparently nipped the top end off yield potential at some locations.

But it was not enough to significantly wither total production, based on the latest USDA forecast.

The Ag Department last week in its world ag supply and demand estimates report lowered its estimate for Brazilian soybean production by 1 million metric tons (36.7 million bushels) to 94.5 million metric tons (3.5 billion bushels).

But that cut was offset by the fact that USDA, in the same report, raised its esti-

mate for soybean production in Argentina by 1 million metric tons up to 56 million metric tons (2.1 billion bushels).

If realized, soybean production in both countries will set new records. South American soybean harvest began in recent weeks but likely won’t hit full stride until later this month or into March.

“Now the focus (of the trade) is on how large the South American (soybean) crops are,” Brian Basting, market analyst with Advance Trading, said during a teleconference hosted by the Minneapolis Grain Exchange. “And it

looks like we’ll have a record supply of soybeans coming out of South America in the next few months.”

And the production estimates could grow in coming months, depending on what South American farmers encounter during harvest.

“Indications suggest the Argentine crop has some upside to it,” Basting said.

A potential wall of South American soybeans could start spilling into the world market in the weeks ahead and cut into U.S. exports.

USDA last week raised U.S. soybean exports 20 million

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bushels to a record 1.79 billion bushels, which reflect a record pace of shipments through January.

“It looks like we’ll have another good month of bean exports, but by about midMarch, (U.S. beans sales) will start to taper off rapidly,” Basting said.

A slowdown of the U.S. soybean export program could pressure prices at a time when U.S. growers consider planting more beans.

USDA on March 31 releases its much-anticipated U.S. prospective plantings report.

Many traders believe U.S.

farmers could boost soybean plantings to another record level, possibly pushing 90 million acres.

“U.S. acres of beans have the potential for another increase based on economics,” Basting said. “But there’s still a lot of moving parts between now and planting.”

A wild card in the plantings report revolves around acreage that was not planted to winter wheat (about 1.9 million acres) last fall compared to the previous year along with what happens to land coming out of the Conservation Reserve Program.

— Daniel Grant

Attend a meeting at your convenience ...

Date

Location

City

Time

Contact

February 18

Knights of Columbus Hall

Carlyle

12:00 PM

Keith Wilken, 618-526-4541

February 23

Ogle County Farm Bureau

Oregon

5:00 PM

Ron Kern, 815-732-2231

February 24

Carroll County Farm Bureau

Mt. Carroll

10:00 AM

e 815-244-3001 Chas Welch,

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Piatt County Farm Bureau

Monticello

8:30 AM

Emily Zelhart, 217-762-2128

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Additional meetings take place through March. Follow FarmWeek FarmW Week k®, FarmW FarmWeekNow.com, eekNow.com, your favorite RFD Radio Networ Network k® radio station, or ilfb.org/farmbill to learn more.

Yield, base acre decision straightforward

FarmWeek • Page 8 • Monday, February 16, 2015

If you haven’t made yield and base acre decisions, there’s still time. Gary Schnitkey, University of Illinois Extension farm management specialist, said informal reports suggest relatively few farms have completed sign-up, leading to speculation that some will skip updating yield and reallocating base acres.

Schnitkey believes that could be a mistake. He noted Gary Schnitkey the decision making process is not difficult or complicated.

Landowners have two yield alternatives — keep current program yields or update program yields based on yields from 2008-12. He said decisions can vary by crop and are simple — take the highest yield.

The yield update decision is independent of other decisions. Acres can be reallocated even

if yields are not updated. If yields are to be updated, yields for 2008-12 should be brought to the Farm Service Agency (FSA) office, along with identification of documentation type that will be used in case of an audit.

For base acre reallocation, landowners have two alternatives — retain current base acres or reallocate base acres based on 2009-12. FSA has all the information needed to make this decision.

Historically, Schnitkey said corn pays more than wheat and soybeans, suggesting choosing the allocation with the most corn acres.

Yield and base acre sign-up and decisions are straightforward, Schnitkey concluded. He recommends choosing the highest yield and the reallocation alternative with more base acres in crops with larger program benefits, primarily corn acres.

For more information, visit {farmbilltool box.farmdoc.illinois.edu}.

USDA: Pathogens threaten honeybees year-round Two pathogens, apparently responsible for causing honeybee diseases, can potentially strike in any season — not just spring, according to a two-year study conducted by USDA’s Agricultural Research Service in partnership with scientists in Brazil.

The study revealed the culprits were two kinds of bacteria, Spiroplasma mel-

liferum and S. apis, which can be found among plants, ticks and insects. Bees pick up the disease from plant nectar. The pathogens in this case have infection rates as high as 54 percent. In addition, bees felled by the bugs are unable to fly, resulting in a 25 percent loss in honey production.

The study’s findings shed light on the microbe transmis-

sion of pathogens and will serve as a heads-up for beekeepers to monitor their colonies year-round. New genetic markers will also make it easier to screen colonies for the pathogens.

However, scientists are not yet sure what, if any, role the pathogens play in colony collapse disorder, and just how lethal they are to the colonies.

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Important ARC/PLC deadlines approaching — Feb. 27 marks the deadline for farmers to update yield history and/or reallocate base acres. Farm owners and farmers may choose between the new 2014 farm bill established programs, Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), through March 31.

USDA helped create online tools to assist in the decision process, allowing farm owners and farmers to enter information about their operation and see projections that show what ARC and/or PLC will mean for them under possible future scenarios.

Farm owners and farmers may access the online resources by visiting {www.fsa.usda. gov/arc-plc}.

Covered commodities include barley, canola, large and

Farm Service Agency

small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain rice), safflower seed, sesame, soybeans, sunflower seed and wheat.

Important ARC and PLC dates: • Now through Feb. 27: Farm owners may visit their local Farm Service Agency office to update yield history and/or reallocate base acres.

• Now through March 31: Farmers make a one-time election between ARC and PLC for the 2014-18 crop years.

• Mid-April through summer: Farmers sign contracts for 2014 and 2015 crop years.

• October 2015: Payments issued for 2014 crop year, if needed.

USDA declares disaster areas in eight drought-stricken states A long-standing drought throughout California and parts of eight other western and southwestern states compelled USDA to designate 256 counties as natural disaster areas. In addition to California, the affected states include Arizona, Colorado, Idaho, Kansas, Nevada, Oklahoma, Texas and Utah.

Farmers and ranchers in designated areas may qualify for low-interest emergency loans through the USDA’s Farm Service Agency, and have eight months from the declaration date to apply for the loans, which cover part of the actual losses.

Besides drought relief, the agency also offers loans for other natural disaster losses, the result of floods, fires, freezes, tornadoes, pest infestations and others. All programs come from the 2014 farm bill.

New soy oil products introduced

What does foam that keeps floors from squeaking have in common with NASCAR racing tires? Both contain soybean oil. And both lead the list of 33 new products commercialized in 2014 with soy checkoff support.

More than 800 soy-based

products have been developed with checkoff support since 1990. Checkoff-funded research continues to pay dividends as manufacturers look for ways to displace industry standards like petroleum, latex, mineral oil and other possibly carcinogenic materials in their products.

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World Ag Expo buzz: boosting livestock growth

Page 9 • Monday, February 16, 2015 • FarmWeek

Business boomed at the Illinois Livestock Development Group’s (ILDG) exhibit at the World Ag Expo in Tulare, Calif., last week. As one of the country’s largest agricultural exhibitions, nearly 100,000 farmers and agribusiness people from all over the world attended.

Exhibiting at the expo for the ninth time, Illinois hosted a livestock development booth along with a dozen other states. Nic Anderson, ILDG’s livestock business developer, noted a significant increase in activity at Illinois’ booth this year.

“Illinois is attractive as a state that is slated for livestock growth, especially for dairymen,” said Anderson.

“Illinois has such abundant natural resources like water, productive soils and a climate that is conducive for growing crops and livestock.”

Anderson attributed the growing interest in Illinois as

a result of a two-year drought in California that has brought significant challenges to every aspect of California’s diverse agricultural economy.

“I think the take home message this year is optimism.

Communication remains strong between farmers and people involved in agriculture,” Anderson told the RFD® Radio Network. “We are faced with the same issues as California. We have common goals to produce healthy foods for consumers.”

Illinois dairy producers, Ken and Amy Hildebrandt of Boone County took some time off from their own northern Illinois dairy farm to visit dairy farms in California. One of their stops included the farm of Illinois native, Roger Fluegel.

Fluegel grew up on a Stephenson County family dairy and moved to California after accepting a job with the Holstein Association USA following his

USDA Rural Development awarded $488,364 to Carbondale-based Southern Illinois Healthcare (SIH), which will work with additional hospitals and health care organizations to create the Southern Illinois Telemedicine Initiative.

SIH will use the money to buy equipment and make physical upgrades for the peer-topeer network that will initially connect seven rural hospitals, including four critical access ones, with a goal of improving accessibility and quality of patient care.

“The development of the Southern Illinois Telemedicine network is made possible through the energy and support of its members,” said Terence Farrell, Herrin Hospital vice president and administrator.

According to Farrell, the initial work will involve comprehensive resources to bring advanced stroke diagnosis and treatment to each of the organizations in the telehealth network. In additional, that work will create structure to address additional needs in a variety of specialties ranging from fetal ultrasound to behavioral health.

The hospitals involved in the Southern Illinois Telemedicine Initiative includes SIH and its three hospitals, which include Herrin Hospital, Memorial Hospital of Carbondale and St. Joseph Memorial Hospital in Murphysboro, as well as Union County Hospital in Anna, Marshall Browning Hospital in DuQuoin, Harris-

burg Medical Center and Hamilton County Hospital in McLeansboro. The network also includes the Southern Illinois University School of Medicine, Illinois Hospital Association and Connect SI. “Part of the Rural Development mission is to ensure that beyond the infrastructure of electricity, beyond the infrastructure of water and waste disposal, our rural communities have the technological infrastructure to remain successful and competitive,” said Colleen Callahan, Illinois Rural Development director.

The area designated the Illinois Delta Region consists of 16 counties. Each county has been classified as medically underserved by the federal Health Resources and Service Administration, meaning there is a shortage of primary medical care, including medical, dental and mental health providers. The implementation of a telemedicine network will improve provider access and diagnostic communications resulting in better patient care and health, and reduce the time and travel burdens for the patient.

The Delta Health Care Services Grant Program provides financial assistance to address the continued unmet health needs in the Delta Region through cooperation among health care professionals, institutions of higher education, research institutions and other entities in the Delta Region. Funding was provided through the farm bill.

BY JIM FRALEY

Rural Development awards grant for southern Illinois health care

graduation from Illinois State University, Normal.

His love for dairy cows soon led him on a path of custom calf raising, partnering in a small dairy, growing into larger operations, and now owning and operating a 1,700-cow dairy in rural Hanford, Calif.

The Hildebrandts toured Fluegel’s dairy to learn about his growing pains, and how he met and overcame challenges. Fluegel noted that producers should maximize the use of the dairy’s most expensive asset — the dairy parlor — and ensure it is running at capacity.

His rule of thumb is that it should be “turned over” every 15 minutes. To do this, employees, cows and machinery need to work seamlessly to keep everything running smoothly.

Fluegel also recommended surrounding yourself with good people. “Having

Boone County dairy owners Ken and Amy Hildebrandt, left, take a break from the World Ag Expo to visit with California dairyman Roger Fluegel. The dairy owners shared challenges and opportunities during the dairy tour. (Photo by Jim Fraley)

access to positive role models, and good dairymen who are willing to share their successes, is essen tia l to h elp in g yo u

b e c o m e s u c c e s s f u l .”

Jim Fraley serves as Illinois Farm Bureau’s livestock program director.

Farmers’ market changes signal local food shift Sales of foods at farmers’ markets are losing momentum, according to a USDA report, but this may be a good sign for farmers and the marketing of local foods, according to analysts.

Farmers’ market sales decreased 1 percent in real dollars from 2007 to 2012 compared with a 32 percent increase from 2002-07, and a 36 percent increase in the previous five-year period.

The number of new farmers’ markets nationwide also is slowing.

Analysts believe the local food movement

might may be shifting from farmers’ markets to becoming a part of the larger industry.

USDA economist Sarah Low, the lead author of the report to Congress on local and regional food systems, wrote farms are marketing to more than farmers’ markets and selling their products to restaurants, grocery stores and distributors.

This indicates a growing overall demand for local food and good news for farmers, whose profit margins are comparatively low at farmers’ markets, according to National Public Radio reports.

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Farmers encouraged to practice seed treatment stewardship

FarmWeek • Page 10 • Monday, February 16, 2015

BY KAY SHIPMAN FarmWeek

Farmers use neonicotinoid seed treatments and foliar sprays because they work, but concerns about possible contributions to honeybee health requires careful use, according to a seed industry expert.

“There are people who want to take away a lot of different tools and this (neonicotinoid) is one of them,” Dave Tierney, a regional Monsanto director, recently told ag retailers and farmers.

Research reports show that exposure to neonicotinoid dust contributes to poor honeybee health and deaths from colony collapse disorder. Bee parasites, viruses and other pathogens comprise major health problems in addition to nutrition problems.

Tierney encouraged farmers and their retail advisers to visit {seed-treatment-guide.com} and become familiar with recommendations and best practices. “It’s really important to demonstrate good stewardship,” he advised.

Canadian authorities “are taking a hard look” at neonicotinoid use along with a number of East Coast states, according to Tierney.

Seed treatment remains effective, which explains why farmers use it, Tierney noted. He estimated nearly all corn seed and more than half of soybean seed is treated.

Although neonicotinoid use is widespread, it also helps reduce other potential chemical applications. Tierney explained a pound of neonicotinoid replaces 5 pounds of alternative chemicals.

Tierney’s recommendations include: Be aware of options and of handling treated seeds; never over apply; use established best management practices; and follow label restrictions.

He encouraged farmers and retailers to review DriftWatch {il.driftwatch.org}, the online site for pesticide-sensitive locations and bee hives.

Time to plant seeds of demand growth

The groundhog said we’d have six more weeks of winter, and that’s all right. As long as we can get in the fields for planting in time, right?

It’s another planting season. We do it each year. And although the basic process remains the same, and Lou Lamoreux some of the basic challenges are familiar, every year brings something new.

As we’re looking at the 2015 crop season at the Illinois Corn Marketing Board, we’re focused on building demand. We know that supporting corn market prices is our No. 1 priority for you, the farmers that contribute to your Illinois corn checkoff.

I recently returned from a U.S. Grains Council (USGC)

BY LOU LAMOREUX

Lou Lamoreux farms near Lanark and serves as the Illinois Corn Marketing Board chairman.

associations are calling for the federal government to intervene. The slowdown has been caused by contract disagreements between dockworkers and port terminals. Even if the ports continue with normal operations, they may not be able to manage the high volume.

Frank Layo, a Kurt Salmon retail supply chain strategist, said many retailers have moved shipments to the East Coast

and are holding more inventory, but that may only work for the short term. He noted a long-term solution may be increasing U.S. manufacturing.

This year, delays will cost up to $3.8 billion, but the cost of rerouting products, missed sales and holding inventory may push that loss up to $7 billion. Half of imports entering the U.S. come through the West Coast, according to Chain Store Age.

West Coast port slowdown generates $7 billion losses Retailers may lose as much as $7 billion in 2015 due to the ongoing West Coast port congestions, according to a Kurt Salmon company analysis.

Workers have threatened to stop work altogether, while trade

It’s not just storing grain.

It’s storing quality.

‘Energized’ ag literacy training offered

Farm Bureau ag literacy leaders can attend a train-the-trainer event May 7-8 in Lincoln, Neb. Applications must be completed

by Friday (Feb. 20).

This American Farm Bureau Foundation for Agriculture event will equip leaders in agricultural literacy with resources to train science teachers and/or volunteers to integrate agriculture into middle- and high-school science courses. Attendees will receive free copies of new lesson plans.

For example, resources for middle school educators will include standards-aligned lesson plans such as Energy Around Us, Energy Input and Food Production, Energy Distribution, Energy Showcase and Putting it All Together.

Strategic planning tips for engaging science teachers in one’s community and state will be featured along with a take-home kit of supplies. Attendees also have the opportunity to tour a local energy facility.

Participants will receive a $750 stipend in addition to hotel and meal accommodations. Download the application at {agfounda tion.org/projects/train-the-trainer}. Email educationdirector@ fb.org with questions.

The event is made possible by generous support from title sponsor Tri State Generation and Transmission Association.

At FS, quality isn’t just a promise, it’’ss a statement. Our grain gra systems experts stay focused on what’’s ahead by providing providin state-of-the-art grain systems that protect grain quality in the bin along with larger capacity bins that keep us moving forward. rd. W Wee are always looking for ways to optimize operations and ensure our customers are readyy for what’’ss next.

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USGC to add ethanol to the list of products that can be promoted with Foreign Agricultural Service funds. USGC was then selected to lead the first-ever ethanol export program. We’re pleased that your corn checkoff investment in Illinois is leveraging federal dollars to enhance this ethanol growth market opportunity.

As you’re planting your corn crop this spring, you’ll have a lot on your mind. But take a few minutes to recognize the important role you play in your local community, the state, our nation and the world. And throughout the planting season and the rest of the year, we’ll keep working at the Illinois Corn Marketing Board to grow corn demand because your profitability is our bottom line.

meeting. We partner with USGC, investing your checkoff dollars so they can be leveraged with others to improve corn export demand.

At this most recent meeting, the talk wasn’t just about corn as a grain, but exporting corn through ethanol.

In 2014, the U.S. exported 836 million gallons of ethanol — up 35 percent from 2013 and the second-highest annual total on record. What’s more, American-made ethanol was exported to 51 countries on all six inhabited continents around the world.

Illinois is a net exporter of ethanol. In fact, we make enough ethanol to displace about a third of our state’s gasoline demand. With our competitive advantage in transportation, these export markets for ethanol are important to your local corn prices.

Just about a year ago, USDA acted on a request from

TM

©2013 GROWMARK, Inc. A14167

Tuesday: • FarmWeek: “The Early Word” • Bruce McCarl, Texas A&M: climate change • Eric Schmidt, EJS Weather Wednesday: • Richard Guebert Jr., Illinois Farm Bureau president • Jim Bower, Bower Trading • Tim Schweizer, Illinois Department of Natural Resources: safety education for hunters and boaters Thursday: • Kevin Semlow, IFB director

of state legislation: state budget • Eric Swanson, COUNTRY Financial: crop hail insurance • Cynthia Haskins, IFB manager business development and compliance: March 3 Meet the Buyers event • Jeff Jarboe, Illinois Corn Growers Association: Commodity Classic preview Friday: • Mary Warren, USDA Rural Development: Rural Energy for America Program • Monica Nyman, St. Louis Dairy Council: cooking for one • Dan Adcock, WinField: 2015 planting season

New club launched for B20 fleets

Burning B20 biodiesel might just qualify you for membership in the latest club. Illinois Soybean Association (ISA) and the American Lung Association recently fueled the B20 Club with six inaugural members.

The club recognizes Illinois-based fleets running on B20 biodiesel blends.

The group plans to meet in August and welcome more members to discuss new ways of promoting the benefits of using B20.

Inaugural members include: • Fleet Services Division of City of Evanston Public Works Department; • Cook-Illinois Corporation, Lemont;

• Peoria CityLink; • R&N Trucking LLC, Princeville; • S.K. Davison, New Holland; and • G&D Integrated, Morton.

B20 use in the more than 2,700 vehicles managed by these six members totals more than 2.2 million gallons, which translates into an estimated annual reduction in CO2 emissions of more than 253 tons — the equivalent of taking 48 cars off the roadway.

Membership in the B20 Club is open to all Illinois fleets committed to operating with B20 at least six months a year. For more information, visit {b20club.org}.

Technology may be becoming a bigger part of successful foodservice. A fourth of consumers reported being interested in seeing more technology features at restaurants, claiming that would sway them into choosing where to eat. One year ago, that number was one fifth, showing that technology at restaurants is moving from novelty to expectation, according to the National Restaurant

Association’s 2015 Restaurant Industry Forecast.

In another growing trend, more consumers are choosing restaurants that source locally grown food, with 69 percent of restaurant patrons more likely to visit restaurants that source locally compared with 64 percent a year ago. Three in four consumers say they are more willing to go to restaurants that offer healthier options.

Page 11 • Monday, February 16, 2015 • FarmWeek

IFF MOMS KICKOFF YEAR OF LEARNING

Above, Roundy’s dietician Peggy Balboa, right, shares food nutrition information with 2015 City Moms. Twenty-seven participants met recently to tour and scavenger hunt at Mariano’s in Wheaton. City Moms also heard from Diane Merrion, Cook County Farm Bureau Ag in the Classroom coordinator; farmers Michele Aavang of Woodstock and Pam Janssen of Minonk; and Jodie Shield, a Chicago Registered Dietician. Left, City Mom Nicole Foster of Chicago asks Shield to clarify some food nutrition facts. Shield explained no difference exists nutritionally between organic and conventional foods. She added that purchasing organic food remains a choice individuals can make. The tour marked the first event of the year for the moms involved in the Illinois Farm FamiliesŽ-sponsored program. (Photos by Cyndi Cook)

High tech, local food drawing customers

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Nominations due for distinguished service, Eagle awards

FarmWeek • Page 12 • Monday, February 16, 2015

BUSHELS BOLSTER FOOD BANK

Wayne Anderson, Illinois Farm Bureau District 3 director, in blue shirt, presents a $21,467 check –- the proceeds of 5,279 bushels of donated grain — to Mike Miller of the River Bend Foodbank in Davenport.

Mercer County Farm Bureau President Jeff Kirwan, in plaid shirt, and Mike Secymore, GoldStar FS grain merchandiser, participate in the 5th Bushels for Hunger donation to the food bank. Five county Farm Bureaus — Henry, Mercer, Rock Island, Stark and Whiteside — have contributed more than $126,000 during the last five years. The counties partner with area grain elevators and ethanol plants, including ADM, Atkinson Grain, Big River Resources, Cargill, CGB, Gold Star FS, Hillsdale Elevator, Michlig Grain, Patriot Renewable Fuels, River Gulf Grain, River Valley Cooperative and Rumbold and Kuhn. (Photo courtesy of Todd Mizener, Moline Dispatch-Rock Island Argus)

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Soil fertility, environmental stewardship and market prices will be discussed during a Feb. 27 soil fertility seminar at 17 University of Illinois Extension county offices. The presentations will be delivered through web conferencing from 9 a.m. to 2:30 p.m., and lunch will be provided.

“At the seminar, university researchers will share the most current nutrient management research and recommendations to both increase nutrient efficiency and decrease nutrient losses,” said Angie Peltier, U of I Extension educator.

Topics will include nutrient management, algae bloom impacts on nutrient management in the Lake Erie Basin, soil fertility decisions in 2015 and evaluating Adapt-N in the Corn Belt.

The registration fee is $50 and includes lunch.

For an agenda and to register, visit {web.extension.illinois.edu/nwiardc/sfs/}.

University of Illinois Extension and the USDA Natural Resources Conservation Service will host a one-day grazing workshop from 8:30 a.m. to 3 p.m. March 19 in the Clark County Extension office, Marshall. The registration deadline is March 16.

The workshop will focus on improving grazing systems, incorporating cover crops into grazing forages and improving grazing management practices.

Topics will include: • Introduction to management-intensive systems, • Water and fence to fit your pasture, • Benefits of legumes in cool-season grasses, • Weed management in rotational grazing systems, • Extending the grazing season with cover crops and annuals, • Grazing cover crops: avoiding animal health issues, and • Silvopasture: an agroforestry practice.

The $15 registration fee includes lunch. Register by visiting {http://bit.ly/1J4DGy8}, by calling the Clark County Extension office at 217-826-5422 or by emailing jlwshbrn@illinois.edu.

Hawaiian legislature mulls farming rules

So clear your calendar, pack the swimsuits and head to Great Wolf Lodge.

USE CORPORATE CODE: ILLI617A

Soil fertility seminar offered

Grazing workshop set for March 19

PERKS FOR THE

For more information or reservations, visit greatwolf.com or call 800.905.WOLF (9653).

If you know individuals who exhibit outstanding agricultural leadership or work tirelessly to achieve important Farm Bureau initiatives, nominate them for two Illinois Farm Bureau awards.

County Farm Bureaus can submit nominations for the Charles B. Shuman Distinguished Service Award and the Eagle Award for Excellence until May 1. Recipients will be named at December’s annual meeting.

The distinguished service award recognizes an Illinois individual who has given a lifetime of leadership and service to agriculture on the state or national level. In November 1999, the IFB Board chose to honor the late Charles B. Shuman, a Moultrie County farmer, by naming this longstanding award for him. Shuman served as IFB President from 1945-1954 and AFBF President from 1954-1970.

The Eagle Award honors an individual or an organization for excellence on issues or programs important to Farm Bureau and agriculture on a statewide or national basis.

Nomination materials can be accessed at {www.ilfb.org}.

Click on IFB Leaders Section/CFB Office tools/CFB Resources/Awards.

Nominations can be mailed to the IFB Member Services and Public Relations Division, 1701 Towanda Ave., Bloomington, Ill., 61701, e-mailed to mkennedy@ilfb.org or faxed to 309-5572641.

Valid through December 30, 2015.

Includes water park admission the day you arrive through the day you depart.

Must present valid work ID or documentation at check-in.

Offer valid only at the property and dates listed above. Valid on a per night basis and must be mentioned at time of reservation based on 2015 best available rates. Limited number of rooms available for each date. May not be valid during holiday and blackout periods or combined with any other discount or promotional offers. Multiple night minimum stay may apply. Offer based on 4 guests per room and must have one individual 21 years of age or older staying in each room. Offer may be terminated at any time without notice. Offer is not transferable and is not redeemable for cash.

Must present valid work ID or documentation at check-in. Limit of 2 rooms per valid ID. Additional charges may apply for themed and premium suites, weekends, and/or holidays.

Hawaiian lawmakers are considering a bill that would prohibit counties from implementing piecemeal farming regulations. The House Agriculture Committee passed the bill on an 11-2 vote Thursday.

Legislators introduced the bill after several counties implemented policies restricting or prohibiting the use of pesticides and biotech crops.

“I fully understand the concerns of individuals, but the courts have decided that this particular issue — those bills that were passed on Kauai and the Big Island — that it is the state’s responsibility to address these issues,” said Democratic state Rep. Richard Onishi, one of the bill sponsors.

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Page 13 • Monday, February 16, 2015 • FarmWeek

UREAU — Farm Bureau will host a farmland lease seminar at 6:30 p.m.

Feb. 25 at the Farm Bureau office. Tim Harris, Capital Ag Property Services, and Gary Schnitkey, University of Illinois Extension, will speak. Call the Farm Bureau office at 875-6468 for reservations by Wednesday.

ASS-MORGAN — Young Leaders will meet at 6:30 p.m. Wednesday at On the Rox in Jacksonville. Nathan Suttles, Elite Ag Advisory LLC, will speak.

• Farm Bureau will co-host an irrigator meeting at 11 a.m.

Tuesday at Beardstown City Hall. Steve Wilson, Illinois State Water Survey, will speak. Reservations are appreciated, but not required. Call the Farm Bureau office at 245-6833 for more information.

• Farm Bureau will host a market and weather outlook meeting at 6 p.m. Feb. 23 at the University of Illinois Extension in Jacksonville. Dale Durchholz, AgriVisor senior market analyst, and a meteorologist from the National Weather Service will speak. Reservations are appreciated, but not required.

HAMPAIGN — Farm Bureau will present Music of the Heartland in partnership with the ChampaignUrbana Symphony Orchestra at 7:30 p.m. March 6 at Krannert Center for the Performing Arts.

The evening will include an antique tractor photo opportunity. Cost is $20. Limited tickets are available at the Farm Bureau office. Call the Farm Bureau office at 352-5235 for tickets or more information.

HRISTIAN — Foundation and Young Ag Leaders scholarship applications are available at {christian cofb.com}. Deadline to apply is March 3. Call the Farm Bureau office at 824-2940 for more information.

OOK — Farm Bureau will host a kick-off for

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the Food and Farm Forum series from 9 a.m. to noon Feb. 28 at the Farm Bureau building. This series, designed to encourage aspiring entrepreneurial farmers, will begin in March. Call the Farm Bureau office at 708-354-3276 to register. For more information, visit {cookcfb.org/buylocal/programs}.

OUGLAS — The Women’s Committee will host a roundtable luncheon discussion beginning at 10 a.m. Feb. 25 at the Farm Bureau office. Ronald Pierce, Pierce Farm Management, will speak. Call the Farm Bureau office at 253-4442 for more information.

ORD-IROQUOIS — Farm Bureau will host Viewpoint breakfast meetings at 7:30 a.m. Tuesday at the Farm Bureau building and Feb. 24 at Happy Days Diner in Roberts. Reservations are not required. Call the Farm Bureau office at 265-4712 for more information.

ANCOCK — Farm Bureau will co-host a workshop entitled Focus on the Farmer — Taking Care of You at 8 a.m. Tuesday at Sullivan & Son Auction and Events Center. Mike Adams, “AgriTalk” host, will be the keynote speaker. Call the Farm Bureau office at 357-3141 for reservations and more information by Friday.

ENRY — Four, $1,000 Foundation scholarships and six, $2,000 Wilbert and Carol Keppy Foundation scholarships are available. Find applications at {henrycofarmbureau.org} or by email kbhcfb@theinter.com.

Application deadline is March 6. For more information, call the Farm Bureau office at 9372411.

ASALLE — Farm Bureau will co-sponsor a grain production and outlook dinner meeting at 6

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IRRIGATION 101

Scott Budke, Pioneer Encirca, discusses results from an irrigation research plot with about 60 Mason County Farm Bureau members. The recent 2015 Irrigation Clinic sponsored by the Central Illinois Irrigated Growers, included information about water use reporting and environmental issues facing agriculture. Budke explained that moisture management probe technology indicates optimal times to irrigate as well as stages during which plants don’t require as much moisture to thrive.

(Photo by Ashley Beutke, Mason County Farm Bureau manager)

p.m. March 9 at Pitstick Pavilion, north of Ottawa.

Dan Arkels, local farmer, and Joe Camp, AgriVisor, will speak. Call the Farm Bureau office at 433-0371 to register

by March 5.

EE — Young Leaders will host a roundtable discussion on planning for the future at 7 p.m. Tuesday at the Farm Bureau building. Call the Farm Bureau office at 8573531 for more information.

• The Women in Agriculture Conference will be at 8 a.m. March 20 at Jumer’s Casino and Hotel in Rock Island.

Registration is open to women. Cost is $50 if paid on/or before Feb. 28, $60 after Feb. 28 and $75 the day of the conference. Visit {womeninagricultureconfer ence.com} to register.

ONROE — Farm Bureau will host a Viewpoint breakfast meeting at 8 a.m. Feb. 23 at the Tavern in Maeystown. Call the Farm Bureau office at 939-6197 for reservations by Thursday.

• Farm Bureau will cosponsor an on-the-road seminar from 10 a.m. to 2 p.m.

March 4 at Gateway FS Structures in Red Bud. Kevin Rund, Illinois Farm Bureau senior director of local government,

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and an Illinois State Police representative will speak. Call the Farm Bureau office at 939-6197 for reservations by Feb. 26.

• Farm Bureau will sponsor a Viewpoint dinner meeting at 6:30 p.m. March 2 at Bully’s in Columbia. Call the Farm Bureau office at 939-6197 for reservations by Feb. 25.

T. CLAIR — Young Farmers will host a blood drive from 3 to 7 p.m.

Feb. 24 in the Farm Bureau auditorium. A source of identification is required to donate. Call the Farm Bureau office at 233-6800 for more information.

• Farm Bureau will cosponsor an on-the-road luncheon seminar at 10 a.m. March 4 at Gateway FS Structures in Red Bud. Call the Farm Bureau office at 233-6800 to register by Feb. 23.

ERMILION — Farm Bureau will co-host a soil and water stewardship workshop from 9 a.m. to 2:30 p.m. March 13 in the Farm Bureau auditorium. Jean Payne, Illinois Fertilizer and Chemical Association; Dan Schaefer, N-Watch; and Lowell Gentry, U of I; will speak.

Call the Vermilion County Soil and Water Conservation

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District at 442-8511 for reservations by March 9.

• The Foundation will host a trivia night at 7:30 p.m. Feb. 28 at the Knights of Columbus Hall. A raffle drawing for a Henry 22 “American Farmer Tribute” rifle will be conducted. Raffle tickets are $20 and available at the Farm Bureau office. Call the Farm Bureau office at 442-8713 for more information.

HITE — The Young Leader Committee will offer a $500 scholarship to a student majoring in an agrelated field of study in the fall 2015 semester. Visit {whitecfb. com} for an application.

Application deadline is Feb. 28.

HITESIDE — The Foundation is accepting applications for two summer intern positions. Interns are responsible for AITC summer programs. Internships are open to current college students and high school seniors graduating spring 2015. Preference will be given to applicants with a farm background and/or pursuing a degree in an ag-related field of study. Call the Farm Bureau office at 7722165 or email matt.wcfb@ frontier.net for more information. Application deadline is Feb. 27.

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FarmWeek • Page 14 • Monday, February 16, 2015

New soybean traits offer improved weed control

Exciting developments in the seed industry include the introduction of a new soybean trait — Roundup Ready Xtend. It’s exciting because there is a need for a new and better way to control some tough weeds that are now resistant to Roundup.

This new trait will make Roundup Ready Xtend soybeans tolerant not only to Roundup but also dicamba.

It is the dicamba tolerance that is important in this new soybean trait introduction. Weeds that are now resistant or more difficult to control with just Roundup are very susceptible to dicamba herbicide.

This trait gives growers another tool to use in their herbicide arsenal. By no means is this new introduction the “silver bullet” of weed control, but it will give growers an added option.

The best weed control system for soybeans is a system that uses multiple modes of action to help control weeds. A pre-emergent herbicide with a

BY MATT HYNES

planned over-the-crop application usually means that at least two to three modes of action are being used. That is the key to preventing weed resistance and the introduction of Roundup Ready Xtend gives us one more tool to help make that happen.

That said, Roundup Ready Xtend soybeans have not yet been approved to use in China. Monsanto expects to receive approval sometime in 2015.

The most exciting part of all this is that commercial production for this spring is being Matt Hynes planned as you read this article.

Since China’s approval has not been given yet, the production will be stewarded by Monsanto, so seed will be available for 2016 planting pending China’s approvals.

We in the GROWMARK Seed Division are excit-

ed because this trait will be available in the best genetics not only in FS HiSOY soybeans, but also through the Asgrow soybean brand — both brands that our member cooperatives have available for growers.

This is just the beginning of many new traits that will be coming through soybeans. In the next three to five years, growers will have multiple trait options that will aide in weed control. The ultimate goal is better performing soybeans; the trait is just another tool in protecting yield. Please keep in mind that when you are making your choice of what soybeans to plant, yield is still king. Our goal as a seed supplier is to provide growers with the best genetics and traits to maximize yield for our patrons.

Matt Hynes serves as GROWMARK’s seed sales and marketing manager. His email address is mhynes@growmark. com.

Goodbye open outcry: End of an era was inevitable on trading floors

BY DANIEL GRANT FarmWeek

The CME Group this month confirmed what many grain traders knew was inevitable when it announced the closure of most open outcry trading floors in Chicago and New York.

Most pits will go silent by July 2 in favor of electronic trading, which became the preferred and dominant tool in recent years.

The only futures contracts that will continue to be traded on the floor will be the S&P 500 futures.

“It shouldn’t be a shock to anyone,” said Dale Durchholz,

AgriVisor senior market analyst, who has been in the industry long enough to recall when crop price swings moved by as little as an eighth of a cent. “It does represent a monumental shift, a new era.”

The writing certainly was on the wall as trades via open outcry dwindled over the years.

Pits previously closed at the Minneapolis Grain Exchange (2008) and at the Kansas City Board of Trade (2013).

“We have provided a choice of venue by supporting open outcry trading for many years, allowing market participants to adapt as volume shifted to the (computer) screen,” CME

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$60.00 $44.75 40 lbs. (cash) $60.00-$75.00 $67.68 Receipts

This Week 109,336 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 74,727

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $57.11 $61.90 -$4.79 $42.26 $45.81 -$3.54

USDA five-state area slaughter cattle price (Thursday’s price)

Steers Heifers

This week $161.51 NA

Prev. week $160.00 $160.00

Change $1.51 NA

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 $211.18 $210.65 $0.53

Lamb prices Negotiated, wooled and shorn, 133-160 lbs. for 139-170 $/cwt. (wtd. ave. 153.06) ; wooled and shorn 170-180 lbs. for 133-140 $/cwt. (wtd. ave. 135.52).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 02/05/2015 54.6 14.6 27.6 1/26/2015 62.5 15.3 26.0 Last year 57.6 16.5 27.4 Season total 1431.3 571.1 616.8 Previous season total 1216.2 827.6 602.6 USDA projected total 1790 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Group stated. “However, open outcry futures volume has decreased by 75 percent since 2008, and now accounts for just 1 percent of our overall futures volume.”

The decision to close the pits reportedly will save CME Group about $10 million per year. About 60 jobs could be eliminated.

While the move makes economic sense, it could expose participants to risk of any type of computer glitches or system failures, Durchholz noted. It also ends the original price discovery mechanism achieved through human interaction, which brought liquidity to the marketplace at the Chicago Board of Trade (CBOT).

CBOT, the world’s oldest futures and options exchange established in 1848, began as a voluntary association of prominent grain merchants. The merchants wanted to ensure there were buyers and sellers for their commodities, which resulted in forward contracts.

Authors of the CME Group’s Daily Livestock Report recently described the open outcry trading method, which appears to be organized chaos to many outsiders.

“It was a choreographed dance that started anew each

Traders partake in the time-honored tradition of open outcry during market activity at the CME Group in Chicago. Most pits will be silenced though, as CME Group this month announced plans to close most open outcry trading floors in Chicago and New York by July 2. (FarmWeek file photo by Ken Kashian)

day and directed billions of dollars of capital in a manner that pretty efficiently discovered prices and transferred risk from parties that loathed it to parties that loved it, at least enough to accept it in return for the promise of profits,” authors of the Daily Livestock Report noted.

Open outcry will continue in the options market as that trade remains split about 50/50 between electronic and open outcry platforms.

Durchholz believes open outcry remains popular in options markets as traders put together exotic options spreads packages not easily filled by computer algorithms.

“On the options side, we still see active trading on both the floor and the screen, and we will continue to keep those open outcry markets open as long as our customer base continues to show a viable preference for using both venues,” CME group stated.

Affordable Care Act, farm succession workshop set Farmers can have their questions about the Affordable Care Act and farm succession/estate planning answered from 9 a.m. to 4 p.m. March 26 during a workshop at the Illinois Farm Bureau in Bloomington.

Adam J. Kantrovich, Michigan State University Extension farm management educator, will cover the Affordable Care Act and how it affects farms and the self-employed.

He’ll also discuss details pertinent to farmers with a large number of employees and seasonal workers, including rules of employer shared responsibility (ESR), rules for counting employees under ESR, tax considerations, rules for health insurance market place, rules of individual shared responsibility mandate and employer requirements.

During the afternoon session, Kantrovich will discuss the importance of having a formal estate or farm succession plan in place.

He’ll further outline items that must be considered when preparing the plan, including federal tax law, communication, documentation, business structures and the ideas of equal versus equitable.

The Illinois Specialty Growers Association and the Illinois Milk Producers’ Association will host the workshop. There is no fee to attend the workshop, but registration is required. To register, visit {specialtygrowers. org} by March 20. For questions, call Diane Handley at 309-557-2107, or email dhandley@ ilfb.org.

Corn Strategy

Are livestock at a turning point?

There’s little doubt, the hog and cattle markets have “taken it on the chin” so far this year, the hog market in particular.

We knew going into 2015 the year was going to be significantly different than 2014, but few expected to see a bloodbath to start the year. Typically, hog prices bottom at the beginning of January, then begin their seasonal move higher into a summer peak.

The hog market started weak, only to get worse. Supply and demand both played into the picture.

It has been well documented that both hog numbers and weights are above last year.

The absence of PEDV will continue to support the former, but numbers will still seasonally decline into summer.

The latter has been trending lower, a pattern that should continue. By spring, weights should fall under 2014.

Beef supplies are adding to the mix, too, with cattle slaughter expected to remain near last year’s level the next couple of months. Like hogs, weights are still above last year, but are trending lower.

But demand has been the key culprit keeping livestock prices under pressure. The West Coast export slowdown that started in late 2014 has been diverting more tonnage into the domestic pipeline, and/or freezers, the last couple of months.

In December, pork exports were 11 percent lower than last December. Beef exports were down 7 percent. And given the increasing backlog, January and February numbers

will be no different, if not even worse. The diversion of cargoes to other coastal ports is starting to cause problems at the Gulf and on the East Coast, too.

Every couple of weeks, there are indications the West Coast issues are close to being resolved, only to have them quickly dashed. The president’s hands are tied as he cannot invoke the Taft-Hartley Act forcing people back to work because they have never officially gone on strike.

The inability to ship meat through the West Coast has effectively cut off the flow to our Asian customers, a large portion of our red meat exports. And exports have become an important demand segment with 16 percent of our red meat output going to that segment in 2014.

To be sure, the stronger dollar is playing a part in the subdued export activity. But it’s the inability to easily ship fresh, chilled meat that is a larger drag on demand and prices. In the end, we are seeing the downside repercussions of becoming reliant on exports to absorb a portion of our output.

Even when the issues get resolved, it will likely take a couple of months for the situation to get back to normal.

And the other issues — last year’s high prices and the stronger dollar — will likely keep export demand from quickly becoming robust again.

But a resolution would give the wholesale and live markets a psychological boost. And with smaller numbers on tap the next few months, hog and cattle markets should have a nice recovery. Lean hog prices should move back to $85 to $90 this summer with cattle prices moving to the middle/high $160s before the barbeque season ends.

AgriVisor endorses crop insurance by

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ü2014 crop: Historically, winter tends to have somewhat dull, choppy markets. This year fits that mold well. Better opportunities to make sales will come. Only make needed sales. If you need to sell, we’d recommend a basis contract to secure cash, leaving pricing open into spring. Continue to hold 2013 crop for expected long-term improvement. ü2015 crop: Technically, the market continues to build the case for higher prices. We see little reason to price new crop at these levels. Consider buying out-of-the money, newcrop call options that you can make cash sales against later this spring or summer. vFundamentals: USDA delivered a small surprise in the supply/demand estimates with the 75 million bushel increase in this year’s ethanol grind. Export sales remain on track. And livestock numbers offer a good feed demand base. We’d expect the new 1.827 billion bushel ending stocks estimate to be reduced more in the months ahead.

Page 15 • Monday, February 16, 2015 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: South American crop talk keeps the soybean market acting more defensive than the other grains. But prices continue to act like they are bottoming.

Technical features continue to lead us to believe better selling opportunities should be ahead. ü2015 crop: Prices remain at levels at which we believe downside risk is small. We have no interest in pricing 2015 crop. The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: Conab, Brazil’s USDA counterpart, lowered its crop forecast 1.3 million metric tons (mmt).

Harvest yield reports in Mato Grosso suggest further reductions may come. Mato Grosso harvest is now 25 percent complete. Private analysts continue to project a slightly larger Argentine crop than their government and USDA. Demand remains robust; USDA acknowledged as much on the latest supply/demand forecasts. And January Chinese soybean

imports hit a new record for that month at 6.9 mmt.

Wheat Strategy

ü2014 crop: Old-crop sales should be 75 percent complete. Better opportunities for new sales are expected. ü2015 crop: New-crop wheat should be 25 percent priced. vFundamentals: Traders are waiting for the other shoe to drop as far as Egypt potentially looking to the U.S. for wheat as a way to take advantage of a large credit line. A deal may be more likely now that Egypt’s request for a waiver on new Russian export duties has been

denied. Both Russia and Ukraine are going to remain tight-fisted with wheat in an effort to curb domestic food price inflation. In other Black Sea wheat news, Russia and Ukraine have agreed to a cease-fire. It is yet to be seen whether or not this one will stick, but the accord does take a bit of risk premium out of the market for now.

The above are mostly all oldcrop considerations; market participants have switched gears and are now focusing primarily on the new crop.

Dry conditions in the Southern Plains will persist as a serious worry.

FarmWeek • Page 16 • Monday, February 16, 2015

What if USDA threw a party?

Vote YES for beef What an exciting time it is to be raising beef in Illinois. We’ve been seeing record prices I could not have even imagined when I started raising cattle nearly 20 years ago.

With the U.S. cattle herd being the smallest it’s been since the era my grandpa started farming, I think we have to give the beef checkoff a fair amount of credit for promoting beef to the consumer, educating farmers on how to improve things on the farm, CHAD and for the research that covers SCHUTZ all aspects of our industry.

For just a little historical perspective, in 1983, Illinois cattlemen started a 50-cent-per-head beef checkoff as a way that all beef farmers could take part in promoting the product that we all are so proud to raise.

Three years later, the national checkoff was enacted, and we suspended the state checkoff as Illinois was still going to receive half of the new $1 per head collected every time a beef cow was sold.

This has worked very well and our Illinois

Beef Association has done a great job promoting beef.

As cattle numbers shrunk, so has revenue coming into the checkoff, which is compounded by the dollar not going as far as it used to for promotion, education and research. More than 700 cattle farmers in Illinois signed a petition asking the Department of Agriculture to hold a referendum on reinstating the 50-cent voluntary checkoff.

We at Illinois Farm Bureau support that effort. The IFB Board last month cast its support for IBA’s Vote Yes Coalition.

You have several chances to vote “yes” on the checkoff; February 16-20 at any Illinois county FSA office, February 16-27 as a mail-in ballot, or better yet, come in person and vote at the Illinois Beef Expo Booth 307 at the trade show February 19-22, and see for yourself all the ways that the checkoff benefits you.

Illinois is a great place to raise cattle. The demand for beef has never been higher. Let’s all join together and vote YES for beef.

Chad Schutz, White Hall, serves as District 15 director on the IFB board.

According to news reports, only 5 percent of an eligible 1.7 million farmers have signed up for USDA’s current round of farm programs. If these numbers are accurate, several things may be happening — farm programs have become too restrictive on farming practices; have become too complicated; are not sufficiently attractive, either financially or operationally; or, as farms have become larger, government farm programs may no longer be a key component in farming operations.

Farm programs have been around for a long time. The key programs started after the 1930s Dust Bowl and have continued in various forms ever since. These government farm programs are all voluntary with farmers going to their local USDA office WILLIAM to enroll.

BAILEY However, in order to participate in a program and obtain some form of government support, farmers are expected to follow certain rules — observing specified farming practices, not planting certain crops or not becoming too big.

And while these are not always rules farmers liked, farm program benefits (and financial security) in the past counterbalanced those operational requirements set

by USDA. Things may be changing, and the change may be reflected in the slow rate farmers are signing up for the current round of farm programs.

Recently, dairy farmers around the country had the chance to sign up for the dairy program that was created in the most recent farm bill.

Last year, as dairy farmers were first able to sign up for the new dairy program, the U.S. secretary of agriculture sensed sign-up for the program was not going well and extended the deadline not once, but twice. When the deadline was finally reached, USDA declared victory, proclaiming more than half of the country’s dairy producers had signed up for the new program.

Actually, 50.4 percent enrolled, but that was still more than half as the USDA press release proudly attested.

The sign-up deadline for the current round of key farm programs is March 31.

When you drive by your local USDA office, take note how many vehicles are in the parking lot. USDA hopes the parking lot will get a lot fuller than it has been.

USDA refers to farmers as its “customers.” One wonders, what happens if customers don’t show up at the party given by USDA?

agriculture, which could prove helpful. Farmers and ranchers are more engaged with the public through social media, and this relationship builds support for maintaining a healthy agriculture.

Other trends are also favorable to reducing the pressure on farmland conversion. A recent analysis of housing trends found less interest in developing new suburbs and more interest in urban projects where transportation and public amenities are more accessible. Online shopping has taken a bite out of

shopping malls, and big box stores are starting to be replaced by stores with smaller footprints.

Farmers have always said the best way to preserve farm and ranch lands is to make agriculture profitable enough to keep the land in farming and ranching. This maxim still holds true and is important for all of us.

William Bailey serves as a professor in Western Illinois University’s School of Agriculture, Macomb.

Pressure easing on farmland conversion to development

The Great Recession had many economic consequences — most of them bad, some still lingering. But the recession also helped slow the conversion of farmland to development.

Typically, when farmland is developed, it is turned into housing tracts, shopping malls, roads, other public works projects, golf courses and the like. All of these activities STEWART TRUELSEN were impacted by the recession.

Single-family housing starts peaked at 1.7 million on an annualized basis in 2006. They are just now returning to the 1 million mark. Retail construction suffered a similar fate.

New shopping center construction plummeted in 2009, and 11 percent of retail space was

vacant. A recovery finally began last year.

Recreational development also declined. According to the National Golf Foundation, more golf courses are closing than opening. A little more than a dozen 18-hole courses opened in 2013, while 157 closed.

Energy development has surged, but generally speaking, it is compatible with farming and ranching because its surface footprint is small. It also benefits agriculture by spurring the rural economy.

The recession’s effect on farmland conversion was the opposite of its impact on development. The full impact hasn’t been completely captured yet in the National Resources Inventory, a survey conducted every five years. But a mid-cycle release reported that the annual loss of farmland to development was down

38 percent from the period preceding the recession.

At this point, the nation has around 300 million acres of prime farmland. This is farmland best suited to grow a crop because of soil quality, growing season and water supply. Not all farmland that is developed is prime farmland, but during a 25year stretch, every state lost some of its prime farmland to development.

Now that economic growth is taking hold, does it mean that farmland conversion will accelerate? Not necessarily. Times have changed. Prime farmland is much more valuable today than it was in 1980 when farmland preservation first became an issue.

Since then, federal, state and local programs were added to assist with preservation through agricultural land easements. The public also has a greater awareness and appreciation of local

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Consider submitting a Letter to the Editor. Please limit your letter to 300 words.

Include your name, address and phone numb e r. Yo u r p h o n e n u m b e r will not be published; it will simply help us verify

Stewart Truelsen, a food and agriculture freelance writer, regularly contributes to the Focus on Agriculture series.

l e t t e r a u t h o r s h i p.

Only one letter per writer will be accepted in a 60-day period. All letters will be subject to editing. Far mWeek will not publish political endorsements.

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