The FIrST reSearch and education projects to be funded with a new fertilizer assessment were unveiled last week. ................2
FIrearmS-relaTed legislation is among the hot topics being discussed during this session of the General Assembly. ....3
m a n y c o u n T y Fa r m Bureaus will connect with consumers this week during Food Check-Out Week. ..........................12
Monday, February 18, 2013
Three sections Volume 41, No. 7
Senate spending plan poses safety net questions BY MARTIN ROSS FarmWeek
Farm direct payments — already marked for extinction under current farm bill proposals — would be eliminated as part of a proposal to head off what President Obama labeled a potentially costly “really bad idea.” But funding for new replacement farm programs would be tight under a Senateproposed alternative to across-the-board budget “sequester” cuts — cuts that could at least temporarily hobble USDA services such as meat inspection. In his State of the Union address, Obama warned “sudden, harsh, arbitrary cuts” under sequestration would “devastate” federal education, energy, and medical research priorities and “jeopardize our military readiness.” Under 2011 budget measures, sequestration was required if Congress was unable to pass a deficit-reduction plan by Jan. 1. Lawmakers postponed sequestration to March, and now are seeking an alternative to measures which Obama said would “cost us hundreds of thou-
sands of jobs.” Democrat leaders thus have offered up $27.5 billion in direct payment funding as the entire non-defense discretionary cuts in their compromise bill. Senate Majority Leader Harry Reid (D-Nev.) recently reintroduced a farm bill plan that would replace direct payments with a new revenue safety net and save $23 billion in total ag spending over a 10year period. American Farm Bureau Federation policy director Dale Moore stressed the Senate Democrat spending plan is subject to bipartisan debate. But he said he fears proposed cuts would seriously compromise carefully structured Senate-House safety net proposals. The Senate farm bill plan proposed diverting roughly $16 billion in program savings to deficit reduction over the next decade, leaving some $34 billion to reallocate among other commodity programs. It also targeted $4 billion in conservation cuts and $3 billion in nutrition savings. The new Democrat plan would appear to cut prospective Title I commodity spending by more than half. “Whether you’re looking at the Senate’s ‘shallow loss’ (rev-
enue) approach or you’re looking at the House’s RLC-PLC (revenue/price protection option) combination, it’s going to be really tough to make those programs viable safety nets with those kinds of draconian cuts,” Moore told FarmWeek. Sequestration poses its own risks.
The White House warns the meat industry “may be forced to shut down for weeks” if sequestration cuts for the current fiscal year required USDA to temporarily furlough federal plant inspectors. “If we thought the ‘dairy cliff ’ was a big issue, the meat cliff would be an even bigger one,” Illinois Farm Bureau
National Legislative Affairs Director Adam Nielsen warned, referring to recent concerns about near-term dairy prices that spurred a nine-month extension of 2008 farm bill provisions. Sen. Dick Durbin, a Springfield Democrat, stressed the See Spending, page 6
HARBINGER OF SPRING
A sign that spring can’t be too far off was evident last week on the Shimmin farm in rural Monmouth. Let’s hope when calendar spring arrives that it comes in like one of the lambs shown here. Twenty lambs have been born so far this year on the Shimmin farm in Warren County. Lynn Shimmin, who farms with his mother, Evelyn, and brothers, Randal and Bruce, said a total of 31 ewes have or will soon be giving birth. The Shimmin family raises a variety of fowl, including chickens, ducks, turkeys, geese, and guineas. The family hosts eight to 10 visits by elementary schoolchildren each spring. (Photo by Ken Kashian)
Periodicals: Time Valued
Obama issues call for immigration reform The U.S. Senate is expected to pass comprehensive immigration reform “in a bipartisan way and a convincing form” if it expects the House to address ag labor needs, Sen. Dick Durbin advised last week. In his annual State of the Union Address, President Obama supported comprehensive immigration reform, arguing “our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants.” Obama said business, labor, law enforcement, and religious leaders (as well as a coalition of ag groups including Farm Bureau) “agree that the time has come.” “Send me a comprehensive immigra-
tion reform bill in the next few months, and I will sign it right away,” the president vowed. Durbin, a Springfield Democrat, is one of a group of bipartisan senators spearheading reform. He noted supSen. Dick Durbin porters include “some well-known names on the Republican side,” such as Sen. Marco Rubio (R-Fla.), who delivered the Republican response to Obama’s address. “I think we’ve got a chance this year,” he told FarmWeek following the speech. “In the case of Marco Rubio, I think this is
FarmWeek on the web: FarmWeekNow.com
an indication that the Republicans realize their position on immigration is not in the best interest of their party. Maybe this is the moment. “I will tell you, though, my friends in the House tell me the Senate will have to do this in a biparRep. Adam tisan way and a convincKinzinger ing way to move the House to do anything.” Rep. Adam Kinzinger, a Manteno Republican, sees “massive movement” See Immigration, page 4
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, February 18, 2013
Quick takes USDA TO RE-ISSUE NRCS 1099 TAX FORMS — Next month, USDA’s Office of the Chief Financial Officer is to re-issue corrected 2012 Internal Revenue Service (IRS) 1099 forms to farmers who received financial assistance from the Natural Resources Conservation Service (NRCS), USDA announced last week. The IRS forms issued in January may have the wrong amount or may not have been issued when one should have. Important data to produce correct 1099 information was omitted when a computer system change occurred May 1. NRCS financial experts are working with USDA’s controller operations division to get thousands of 1099s to the appropriate people as soon as possible. At this time, there is no guaranteed date of when farmers will receive the re-issued forms; however, they are expected to be released March 8. USDA is working to ensure a quick turnaround. The USDA chief financial officer will keep NRCS officials informed. Farmers with questions should contact their local NRCS office. ILLINOIS-MISSOURI AG COOPERATION NOTED — The Mississippi River may divide them, but the states of Missouri and Illinois work together on agriculture issues, the state ag directors told members of the St. Louis Agribusiness Club last week. RFD Radio Network’s Rita Frazer reported on the meeting. Illinois Agriculture Director Bob Flider commented on the severe drought that occurred during his first year in office. He appeared before the club with Missouri Agriculture Director Jon Hagler. Under the leadership of Govs. Pat Quinn and Jay Nixon, the state ag departments continue to work with commodity groups, agribusinesses, the U.S. Army Corps of Engineers, and Congress to ensure the transportation of ag products remains unimpeded, Flider said. “Part of our mission is to collaborate with state and federal partners to find ways to ensure rivers like the Mississippi continue to be navigable waterways,” he said. AVERTING TAX ‘HIT’ — New House Legislation would be a major step for farmers and small businesses that otherwise would be negatively impacted by health care reform, according to the American Farm Bureau Federation (AFBF). The Jobs and Premium Protection Act of 2013, introduced by Reps. Charles Boustany (R-La.) and Jim Matheson (R-Utah), would repeal the Health Insurance Tax (HIT). “Health insurance costs already have gone up more than 100 percent since 2000 and the HIT will impose even more devastating costs on America’s farmers, ranchers, and small businesses,” AFBF President Bob Stallman said. HIT was passed as part of the Patient Protection and Affordable Care Act (PPACA). According to AFBF, it has nothing to do with reforming the health care insurance system but was included in PPACA as a way to raise revenue to offset cost of the legislation. During 2014, the first year that HIT is to take effect, roughly $8 billion dollars will be collected.
(ISSN0197-6680) Vol. 41 No. 7
February 18, 2013
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant 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 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
Fertilizer
Fertilizer research, ed taking step forward
for various crops. “The P and K recommendations were developed 40 years ago,” said Jean Payne, Illinois Fertilizer and Chemical president. Updating the Illinois Agronomy Handbook will be one use for the research data, she said. Recently Fabian Fernandez, University of Illinois soil fertility specialist, reported new corn hybrids have changed the amount of P and K removed from soil. NREC also will fund nitrogen management education through the Keep it for the Crop (KIC) program. That program has been involved with the U of I to monitor soil nitrogen levels remaining after harvest. Another project will involve water quality research to be conducted on the fields of farmers who volunteer for the project. The project, also known as a Discovery-Farm approach, will collect data on the effectiveness of various best management practices to
reduce nutrient runoff. Payne envisioned the onfarm research proving if practices work when applied alone as well as in different combinations. “We in agriculture are trying to marry the needs of increased production with reduction of nutrient losses,” Payne said. The new fertilizer assessment is funding research that has been needed for many years, according to Payne. Previously, money was collected from the fertilizer industry and deposited into a state fertilizJean Payne er research fund; however, those funds often were “swept” into state coffers and not available to fund research. Because the research and education is directed toward farmers, Hadden recommended farmers share their research suggestions. “If any of them has a concern they feel needs to be studied, pass it along. I would welcome their suggestions,” Hadden said.
Many drought-stressed cornfields were mowed down or chopped for silage last year and didn’t use all available nitrates. Steve Ebelar, agronomist at the University of Illinois Dixon Springs Agricultural Center near Simpson, said recent soil samples found 20 to 30 pounds of nitrate per acre. “Based on what we’ve seen so far, (wheat growers) may be able to cut their nitrogen rates by one-third this spring,” Ebelhar said. The weather will be the key in determining what’s left in the soil when it comes time for spring N applications. “If we get a lot of rain between now and the time for nitrogen applications, much of the nitrates will wash down in the soil (at depths that can’t be
reached by wheat roots),” he said. Ebelhar, therefore, urged farmers to take nitrate tests on previous corn ground. The tests can be highly variable, but they still will provide a better idea of how much nitrate is available in the soil. Farmers who don’t test the soil and apply their standard N rates this spring run the risk of using too much nitrogen. “That could cause significant lodging and a yield reduction,” Ebelhar said. Nitrate levels found in the field should be subtracted on a 1-to-1 basis from N applications. “If you’ve got five pounds of nitrates in your field, take five pounds off the nitrogen rate (applied),” Ebelhar added.
BY KAY SHIPMAN FarmWeek
The first research and education projects to be funded with a new fertilizer assessment were unveiled last week. The Illinois Nutrient Research and Education Council (NREC) determined which among the submitted projects would receive funding. The assessment is 75 cents per ton of fertilizer sold. The funding is managed by NREC, a private council of members who represent the ag sector. “Overall, I think these are ideas that producers feel are important for commercial agriculture,” said Illinois Farm Bureau Director Dale Hadden, who represents IFB on Dale Hadden NREC. “As a board member (of NREC), I try to be thrifty with the money. I try to stretch it as far as possible,” Hadden said. One of the research projects will evaluate state phosphorous (P) and potassium (K) recommendations
Interest in wheat grows; spring N rates may be cut BY DANIEL GRANT FarmWeek
Interest in wheat production sprouted in the past year, particularly in Southern Illinois. Farmers in Illinois last fall seeded 830,000 acres of winter wheat, up 26 percent from a year ago. Steve Stallman, a wheat grower from Chester (Randolph County) and president of the Illinois Wheat Association (IWA), believes the enthusiasm for wheat is due to a combination of reasons. “There is increased interest in wheat,” Stallman said last week at IWA’s Illinois Wheat Forum in Mt. Vernon, sponsored in part by the Illinois Farm Bureau. “Last year it was the bright spot of crops in Southern Illinois.” The Illinois wheat crop last year, despite the drought, yielded an impressive 63 bushels per acre, up 2 bushels from the previous year. In fact, wheat yields were higher than corn and soybean yields on a number of Southern Illinois farms. The price of wheat has been profitable, particularly when combined with double-crop soybeans. Some farmers also may have planted more wheat last fall to produce a feed crop earlier this year than they could get from a corn crop or to take advantage of untapped nitrogen in the soil.
Page 3 Monday, February 18, 2013 FarmWeek
State
‘Trying to guide a discussion that will create a win-win’ BY KAY SHIPMAN FarmWeek
State Sen. Kwame Raoul (D-Chicago) considered crafting a win-win outcome to state gun legislation as a personal matter. About a year ago on Valentine’s Day, a 13-year-old boy was shot in a drive-by shooting across the street from Raoul’s Chicago home. “I remember coming home and the police had the area taped off,” he said. His daughter had been home, but Raoul asked another parent not to bring his son home from basketball Sen. Kwame practice because the Raoul senator didn’t want to tell him that “a boy your age was shot.” A few months later, a shootout occurred in a building at the other end of Raoul’s block. “When it happens within a two-block radius of my home multiple times ... it’s personal,” Raoul said of gun violence. “But I don’t let that cloud how I approach gun policy — it influences it, but it doesn’t cloud it. “I’m trying to guide a discussion that will create a win-win that keeps guns out of the hands of those who we know have a likelihood of doing harm, and yet allow responsible law-abiding citizens to have access whether ... for sport or self protection,” he said. The discussion will be shaped by the senator’s experiences with his family in visits to the county in which the county Farm Bureau adopted him, Jefferson County. There, the Raouls allowed their son, under guidance, to shoot a gun for the first time at a shooting complex. “That’s one reason why I engaged in the (Illinois Farm Bureau’s) Adopt-ALegislator program — to develop an appreciation for other regions,” he said.
BY KAY SHIPMAN “During that, we had an opportuFarmWeek nity to talk about guns and For Rep. Brandon different issues that affect Phelps, the issue of gun urban areas and rural ownership is linked to areas. memories of hunting, “We discovered we starting at age 6, with weren’t as inconsishis grandfather and tent as we had perfather. ceived,” he noted. “I’m a huge As for gun sportsman. Both legislation, Raoul my grandpa and said he is keeping my father gave an open-minded me that legacy. I approach and treasure that,” said introduced his the Harrisburg bill SB 1337 as Democrat. “a blank canEditor’s note: State Rep. Brandon Phelps this vas.” Phelps (D-Harrisburg) is taking a lead year is sponsorRaoul role on gun legislation in the House of ing gun legislaexpressed hope Representatives. Sen. Kwame Raoul tion — as he that he and Rep. (D-Chicago) has a lead role on gun leghas the last 10 Brandon Phelps islation in the Senate. Both lawmakers years. This year (D-Harrisburg) discussed their views with FarmWeek his bill, HB 997, will be able to before meeting later that day to discuss would regulate develop a frame- gun issues and the potential for finding an Illinois resiwork for a nego- common ground. dent’s ability to tiated solution. lawfully carry a While some people have tried to concealed weapon. pigeonhole the gun debate as a regional The General Assembly faces a one, Raoul said that perspective is not deadline. The U.S. Seventh Circuit true. Court of Appeals ruled on the state’s “A lot of people would be surprised ban on carrying concealed weapons. that a number of people within the City The judges gave the General Assembly of Chicago have a very pro-gun pera 180-day deadline to craft a new gun spective,” he said. law or any Illinois resident with a valid “People say, ‘They’re from Chicago. Firearm Owner Identification (FOID) They want to take away all guns.’ That’s card would be able to carry a weapon not the reality.” “anywhere they want and any time But Illinois citizens need to acknowlthey want,” Phelps said. edge problems of gun violence exist In comparison, Phelps’ bill specifiand agree to protect certain sensitive cally would restrict residents’ ability to places, not just courthouses and the carry concealed weapons in such Statehouse, according to Raoul. places as schools, churches, bars, “We can’t ignore it in one region of libraries, and prisons, he noted. He the state because it’s not as epidemic said some of those restrictions came elsewhere,” Raoul said. as a result of his talking with con“As with any epidemic, it can spread. cerned groups. “We have to do something about it “We put those (restrictions) in there — not withstanding where we come to show people ... that we are men of from in this state,” he concluded.
State Capitol awash with gun bills The following are thumbnail descriptions of some of the bills related to firearms introduced this year in the General Assembly. HB 132 and SB 42 would ban sales and ownership of a semi-automatic assault weapon, attachment, 0.50-caliber rifle, or 0.50-caliber cartridge 270 days after the law takes effect. Proposes other legal restrictions and penalties. HB 154 would develop a licensing process, overseen by the State Police, that allows qualified residents to carry a handgun. HB 159 and SB 69 mandate reporting of stolen or lost handguns with 72 hours of knowledge of the loss or theft. HB 997 and SB 1284 would govern the ability to carry a handgun except in restricted locations as specified in the legislation. HB 1008 would prohibit units of government from assessing
‘We’re going to try to find that common ground’
additional taxes or fees on the sales of any ammunition, firearms, or attachments. HB 1023 prevents governments with home-rule power from restricting gun ownership or requiring gun owners to have firearm training. HB 1024 prohibits counties from regulating or imposing greater restrictions on ownership, sales, and carrying of ammunition, firearms, and attachments. SB 1171 mandates gun sales may be made only federally in licensed firearm dealers’ businesses. The dealers must complete background checks on gun buyers. The bill would have the State Police develop an Internet-based system for background checks. — Kay Shipman Heather Combs, Illinois Farm Bureau assistant director of state legislation, contributed to this story.
our word,” Phelps said. “Because of the court ruling, we believe we are going to get something done.” Phelps said he also believes state lawmakers can find common ground on gun issues. Case in point: A meeting was scheduled last week between Phelps and Sen. Kwame Raoul (D-Chicago), the Senate’s lead legislator on gun issues. “There are some things that we may not agree on, but we’re going to try to find that common ground,” Phelps said of Raoul. “He’s very good to work with, and I respect him a Rep. Brandon Phelps great deal.” Despite having some of the strictest gun laws in the nation, Chicago leads the country in murders, Phelps noted. In comparison, crime rates have not risen in places that allow legal carrying of concealed guns, he added. “That’s what we want to tell people from Chicago, ‘Try it this way because it works,’” Phelps said. “The criminals are the ones committing these crimes. We have to go after criminals harder. “I believe people ought to be able to protect themselves and their families,” Phelps said. The House has scheduled two hearings on gun legislation. The first will begin at noon Tuesday in Springfield, and the second will begin at 10 a.m. Friday in the Michael Bilandic Building, Chicago. The representative encouraged citizens to share their views on the concealed carry issue with their legislators, legislative leaders, and Gov. Pat Quinn. “At the end of the day, they’re going to be the ones drafting a bill if they don’t like mine,” Phelps said.
State legislative, political news
Senate passes same-sex marriage bill — Sen. Heather Steans (D-Chicago) presented SB 10, which authorized same-sex marriages in Illinois, on the Senate floor last week. The Senate passed the bill with a 3421 vote. Two senators voted present. The bill will now move to the House for consideration. More than nine years ago, the Illinois Farm Bureau delegate body, through the grassroots process, implemented a policy for the organization in which marriage was defined as a formal union between a man and a woman. “Illinois Farm Bureau opposed SB 10 based on this policy and communicated that position to each member of
the Illinois Senate,” said Kevin Semlow, IFB director of state legislation. Illinois’ health insurance marketplace — Gov. Pat Quinn and U.S. Health and Human Services Secretary Kathleen Sebelius last week announced federal approval for Illinois to operate a state partnership insurance marketplace. It will be ready for open enrollment in October 2013. Having secured federal approval, the state may select health insurance carriers. Through a website, individuals, families, and small businesses will be able to compare health care policies and premiums and buy comprehensive insurance. State officials estimate
500,000 people will secure coverage through the marketplace in its first year of operation. For more information, go online to {healthcare.gov/exchanges}. Simon announces no second term — Lt. Gov. Sheila Simon last week announced she would not run for re-election. “Serving as lieutenant governor has given me an opportunity to advocate on important issues that affect our state, but it is time for me to do even more,” Simon said in a prepared statement. “I want to serve the people of Illinois in a role where I can have an even greater impact.” She declined to be more specific on her future plans.
FarmWeek Page 4 Monday, February 18, 2013
PRODUCTION
Meteorologist: Southern jetstream could remain active through month BY DANIEL GRANT FarmWeek
The recent pattern of wet weather in Illinois could continue this month. Jim Rasor, chief meteorologist with WSIL television in Harrisburg, last week predicted more rain events will move through the state the next couple weeks. “The only thing that will take us out of the wet pattern is if the southern jetstream jumps north,” Rasor told farmers at the Illinois Wheat Forum in Mt. Vernon. “I think there’s enough cold air to the north to keep that from happening.” The majority of the state the first two weeks of this month received between 1 and 1.5 inches of rain. The state in January received an average of 3.8 inches of rain, according to the Illinois State Water Survey. “I’m no longer concerned with short-term recharge from last year,” Rasor said. “We’ll be in good shape when we come out of February.” Larry Miller, a farmer and manager of the Franklin County Farm Bureau, said his area looks much better than it did last year. “We’ve been getting timely rains. Most of the ponds have been replenished, and the wheat crop looks really good,” Miller told FarmWeek/RFD Radio. “We’re already wetter now than we were a year ago, by a long shot.” The U.S. Drought Monitor last week showed most of the state has normal moisture with some abnormally dry and moderate drought areas in the west and north.
Immigration Continued from page 1 toward accepting the need for comprehensive reform. He nonetheless anticipates “some battles over the question of what comprehensive immigration reform is.” In Kinzinger’s case, that would include consideration of an ag guest worker program “where people could come work and then return home with some of the money they made and paid taxes on here in the States.” He said he opposes blanket “amnesty” for illegal workers, but is open to “putting people in line to become citizens, behind people who have done so legally.” The congressman nonetheless agreed with Obama that heightened border security is a necessary component of any reform. Kinzinger, who flies border missions as a member of the Air National Guard, noted continued drug trafficking at the U.S.-Mexican border. “If drugs can make it over the border, I know weapons of mass destruction could make it over the border,” Kinzinger told FarmWeek. — Martin Ross
The National Weather Service this month predicted the drought in Northern Illinois will ease this spring. (See graph) However, the drought was projected to persist or intensify west of the Mississippi River. Miller last week said he was happy for the recent rain, but, as a farmer, he knows the spring and summer weather patterns are the most crucial for determining crop yields. “To grow a crop in Southern Illinois (on lighter soils than in Central and Northern Illinois), we need rain periodically through the growing season to hit optimal yields,” he said. Rasor projected the spring precipitation pattern in Illinois, particularly in the south, will be normal to wetter-than-normal. The meteorologist has tracked weather data in Southern Illinois since 1989. Overall, he said, the temperature and annual precipitation have increased over the past 20-plus years. “Even though we’re getting more rain, it’s not as good as it sounds,” he said. The number of annual rainfall events since 1989 declined, but the downpours generally increased in intensity, according to Rasor’s records. The heavy rains resulted in more runoff and flash floods. He predicted the warming trend is nearing a peak, and temperatures will start to trend back down in coming years. Last year the average temperature in Illinois was 55.5 degrees, 3.3 degrees above normal, which made 2012 the state’s second warmest on record.
All Illinois soils not created equal for drought recovery BY KAY SHIPMAN FarmWeek
Some of Illinois’ subsoils may need a couple of years to recover from the drought, according to Ron Coleman, acting state soil scientist with the Natural Resources Conservation Service (NRCS). Coleman’s projection of slow recovery applies to lighter soils that rely on precipitation for subsoil moisture recharge in rolling terrain, such as those in the western and southern parts of the ‘In Illinois, a lot of state. far mland has Across the Mississippi groundwater River, soil moisture deficits (beneath it).’ are raising concern in Missouri. University of Missouri soil scientist Randall Miles — Ron Coleman Acting state soil scientist found moisture deficits in with the Natural Resources areas of his state that had Conservation Service received extra rain from Hurricane Isaac. While the first few inches of soil were wet, the soil beneath that was dry. Miles projected almost continuous snow and rain would be needed to return the Missouri soils to a normal state this year. “In Illinois, a lot of farmland has groundwater” beneath it, especially the poorly drained soils, Coleman said. “Currently, a lot of our state does not have a problem” with subsoil moisture, he added. Northwestern Illinois had received less precipitation, but a higher percentage of the land is shallow soil to bedrock, Coleman said. Those soils will not require as much rain to replenish their moisture levels, he explained. In addition to the need for years of rain for Missouri subsoils to recharge, Miles also projected two years of rain may be needed for the recovery of soil microbes and beneficial insects.
AFTER THE ADDRESS Taxes: President Obama argued “now is our best Energy. Obama argued “we are finally poised to conchance for bipartisan, comprehensive tax reform that trol our own energy future,” suggesting wind and solar encourages job creation and helps bring down the deficit.” energy can generate “tens of thousands of good, AmeriAt the same time, he proposed generating “hundreds of can jobs.” billions” in federal revenues by elimination tax loopholes Though the president did not specifically identify biofuand deductions for the “well-off and well-connected.” els, House Ag Committee member Rodney Davis, a TayU.S. Rep. Adam Kinzinger, a Manteno Republican, lorville Republican, praised his general commitment to “an acknowledged “revenue has been put on the table,” openall-of-the-above approach” that promotes expanded ing the way for tax “cleaner” fossil fuels use and reform debate. But he renewables development. cited Rep. Marco Executive authority. ObaRubio’s (R-Fla.) postma announced he would Illinois Farm Bureau National Legislative DirecState of the Union call direct his Cabinet to identify tor Adam Nielsen discussed IFB issues with Illito generate “more taxexecutive actions the adminisnois’ new congressional delegates last week in payers, not new taxes.” tration could take to regulate Washington. He questioned pollution, “prepare our communities for the consequences whether efforts to “milk money from hardworking taxpayers” would “magically solve of climate change,” and speed transition to “sustainable” this (federal) debt.” Historically, federal revenues accelerate energy sources. The AFBF questioned the president’s potentially cir“when the economy grows at a quick rate,” Kinzinger said. Trade. Illinois Farm Bureau National Legislative Direc- cumventing congressional authority, especially with regard to climate policies that “could damage our economy while tor Adam Nielsen applauded Obama’s push to address doing nothing to affect the weather.” longstanding trade issues with the European Union (EU). Last week, Sens. Bernie Sanders (I-Vt.) and Barbara Obama touted a comprehensive Transatlantic Trade and Investment Partnership with the EU, arguing “trade that is Boxer (D-Calif.) introduced a bill to tax carbon emissions on coal mines, oil refineries, and natural gas processors. — free and fair . . . supports millions of good-paying AmeriMartin Ross can jobs.”
Page 5 Monday, February 18, 2013 FarmWeek
energy
Ethanol outlook 2013:
Exports spur hope, frustration for U.S. ethanol sector
BY MARTIN ROSS FarmWeek
While the ethanol sector continues to make advances toward cost-efficiency, new profit streams, and expanded domestic market share (see accompanying stories), U.S. biofuels producers have the world in their sights. According to Renewable Fuels Association (RFA) President Bob Dinneen, ethanol export prospects are “extraordinarily important to future demand.” He touted efforts to build new market opportunities in the Pacific Rim, India, China, “and anywhere in the world consumers are looking for clean-burning, high-performance, renewable motor fuels.” However, Dinneen noted last year’s industry downturn was worsened by an “ethanol trade imbalance” that emerged as a result of “foreign trade barriers and distortions.”
He cited the European Union’s (EU) unsuccessful antisubsidy case against the U.S., which virtually collapsed last year after Congress allowed the federal ethanol excise tax credit, a focus of the complaint, to expire. The EU continues to pursue anti-dumping charges against U.S. ethanol interests — the European Commission has proposed to impose costly new duties on imported U.S. ethanol. Dinneen argued the EU’s actions are “legally vulnerable on numerous grounds.” EU officials targeted six U.S. ethanol producers in its investigation, finding none to be illegally shipping low-price biofuels into the European market. “Nonetheless, duties are being imposed” both on targeted U.S. companies and other ethanol manufacturers not identified in the EU investigation, he noted.
Marketing:
E15 easing forward
Scott Zaremba is an unassuming man — while he took the spotlight at a recent ethanol gathering, the independent fuel supplier hopes someday to no longer be an industry standout. The president of Kansas-based Zarco 66 Inc. — the U.S.’ first petroleum marketer to sell 15 percent ethanol blends — won the Renewable Fuels Association’s Industry Award recently in Las Vegas. Since July 2012, Zaremba’s company has expanded E15 availability to seven stations across Kansas. While the U.S. Environmental Protection Agency (EPA) approved E15 for 2001 and newer vehicles in 2011, its adoption has been slow. Zaremba noted several challenges for retailers, from pump labeling and securing E15-compatible gasoline “feedstock” to educating consumers concerned about purported E15 effects on engine performance and wear. “We move forward every day — we think E15 is going to continue to move forward across the country,” he told farmWeek. “But I pretty much have to do E15 education oneon-one with every customer. There’s so much false (anti-E15) propaganda being put out.” Regional retailers face at least two major E15 concerns. They have access to a variety of gasoline feedstocks offering a range of octane levels. However, ethanol itself is a key gasoline octane enhancer, and not all feedstocks are available in “clear” form, free of existing ethanol content. However, GROWMARK renewable fuels marketing manager Mark Dehner told farmWeek his Bloomington-based cooperative would be able to offer E15 “as the need arises,” through its blending terminal system. Also at issue is fuel vapor pressure — i.e., potential evaporation of ethanol blends and thus increased airborne emissions at retail pumps over the summer months. EPA granted a special vapor pressure waiver for summer E10 use in conventional gasoline but offers no such exemption for E15. That could require some Illinois retailers to “throttle back” from E15 to E10 from June through mid-September, Dehner said. “Flex-fuel” pumps — fuel dispensers which offer a range of fuels from E0 to E85 — are “truly the answer” for retailers grappling with how to cost-effectively market prospective new blends, Zaremba maintained. While blender pumps currently are designed for E85 flexible-fuel vehicles and E0-E10 use in conventional vehicles, they may in the future allow for blending of E15 for later-model conventional vehicles, as well. “It creates a dynamic for retailers to be in charge of their own destiny,” Zaremba argued. — Martin ross
“Importantly, with their action, the Europeans are only hurting their own consumers by penalizing the lowest cost ethanol in the world today,” Dinneen said. Meanwhile, he blasted Brazil’s “trade-distorting practices,” which include lowering its mandatory ethanol blend rate to benefit domestic sugar producers and promoting its own ethanol production through tax breaks and subsi-
dies for ethanol transportation, storage, and export. Given Brazil’s past “indignation” about U.S. ethanol import tariffs — which were eliminated along with the ethanol tax credit — its failure to address the issues the U.S. has raised represents “the height of hypocrisy,” said Dinneen. Those frustrations are exacerbated by the U.S. Environmental Protection Agency’s favorable scoring of sugar cane
ethanol relative to corn ethanol, in terms of their respective carbon footprints. Under the federal Renewable Fuel Standard, that gives Brazilian ethanol an environmental credit that translates to a more than 40-plus-cent-per-gallon advantage in the U.S. market, Dinneen said. As a result, he maintained, “Brazilian ethanol is cannibalizing our market and displacing U.S. product.”
Production:
Fiber healthy part of ethanol diet?
Corn is a virtual fuel factory, as evidenced by the robust emergence of the ethanol sector and its role in boosting producer profits. To date, however, the “factory” has operated at only partial capacity. While key agribusinesses are exploring the potential of stover-based cellulosic ethanol in ramping up gallon-per-acre production, John Caupert and his colleagues at Edwardsville’s NCERC-Biofuels Research Center are working to squeeze added ethanol from corn kernel fiber or bran and thus improve plant profit margins. NCERC formerly went by the name National Corn to Ethanol Research Center. The center director considers bran-based ethanol research — now in its third year — a centerpiece of NCERC’s current project portfolio. Corn fiber is “the most common, yet the most forgotten form of cellulose,” Caupert declared, and the center’s patented bran processing technology has attracted more than a few industry nibbles. Because the currently pilot-scale process taps existing “market-ready, bolt-on technologies,” Caupert argues it could be incorporated into nearly any of the nation’s 200-some starch-based,
dry grind ethanol operations. Because bran is located in the kernel, “you’re not abandoning starch to do the cellulosic portion (of production),” he said. “The door’s open with this technology,” Caupert told farmWeek. “We’ve had a few folks in the private sector approach us — everything from wanting to license the technology to wanting to buy it. “We’re still in the stage, though, of looking for folks to partner with. There’s plenty of room on the bus for folks in the private sector who are interested in the commercial scale-up of this patented technology.” Bran processing offers a new “value-added product stream” for ethanol producers, beyond boosting per-bushel biofuel yields, he said. Up-front extraction of corn oil from the germ generates a “high-value, high-grade edible form of oil” (see accompanying story). “We’ve taken a single feedstock — the kernel of corn — and we’ve created three feedstocks,” Caupert noted. Today, nearly 93 percent of the center’s funding is derived from contractual work with private companies. The remainder is obtained largely through competitive grants. — Martin ross
Products and Profitability:
Oil growing gusher for ethanol sector
Some call it industrial or “inedible” corn oil, some have winced at labeling it a “feed-grade fat product.” But distiller’s corn oil (DCO) — a preferred designation among biofuels producers — has emerged as a key profit center for many plants and one more crucial backstop for the sister biodiesel sector. Unlike food-grade corn oil generated at the front end of the alcohol production process, DCO is extracted following starch fermentation. Matt Niemeyer, distillers corn oil merchandising manager with the producer-owned Renewable Products Marketing Group (RPMG) stressed DCOs “aren’t the corn oils you find on your grocery store shelves.” According to Niemeyer, 65 to 75 percent of the DCOs currently produced are used by biodiesel producers. Much of the remainder provides a high-protein, high-energy supplement for livestock producers. Where only a handful of plants were producing DCOs in 2005, nearly 80 percent of ethanol producers today extract distillers oil. The result has been “a very nice benefit for our industry,” according to national Renewable Fuels Association Regulatory Affairs Director Kelly Davis. And Niemeyer sees a promising future for DCOs as manufacturers seek renewable “feedstocks” and the biodiesel sector boosts production to meet “advanced biofuel” demand under
the federal Renewable Fuel Standard. “A lot’s happened over the last five years,” said Niemeyer, whose Minnesota-based firm markets ethanol and related co-products for 21 biofuels facilities. “Enzymes are being designed to improve oil availability. Surfactants, extraction aids, are being developed to extract more oil. Customers are developing equipment and processes to handle products such as distillers corn oil. And distillers corn oil has been penetrating into the feed sector.” DCOs contain high levels of free fatty acids and required special pretreatment in older biodiesel plants. However, Niemeyer reported more plants are adapting to handle the ethanol co-product, which with its lower cloud point is preferable to biodiesel processors during the winter months. In fact, corn oil has now “edged out” recycled cooking oil as the No. 2 biodiesel feedstock after soy oil, he said. Meanwhile, demand is growing for DCOs as a replacement for animal fat in livestock diets. According to Niemeyeyer, distillers oil can be used to replace some corn in the rations. Because it has high levels of the compound xanthophyll, it producers a yellower, more consumer-desirable fat in poultry. Niemeyer said DCOs are particularly well-suited for use in “allveggie-fed” poultry production increasingly popular with some consumers. — Martin ross
FarmWeek Page 6 Monday, February 18, 2013
risk maNagemeNt
To opt or not: 2013 ACRE considerations BY MARTIN ROSS FarmWeek
Congress’ recent ninemonth extension of 2008 farm bill provisions offered farmers new options for the 2013 season. Farmers will be allowed to opt in or out of the Average Crop Revenue Election (ACRE) program in 2013,
FarmWeekNow.com For more details on 2013 crop insurance coverage options, go to FarmWeekNow.com.
regardless of whether they previously enrolled in the program. ACRE, slated for elimination under Senate and 2012 House farm bill proposals, provides eligible producers a state-level revenue guarantee
based on a five-year state Olympic average yield and a two-year national average price. ACRE payments for any crops in 2013 are unlikely unless prices or yields drop “dramatically,” Illinois Farm Bureau risk management specialist Doug Yoder said. “We’d almost have to have a repeat of the 2012 (drought) situation,” University of Illinois ag economist Gary Schnitkey told Far mWeek. “If we have near-normal yields, we would need corn prices below $5 to kick in payments. “We could have a lowprice scenario if we have near-normal yields and as many corn acres as people are projecting out there. It’s not all that likely it would
pay in 2013, but it could.” Yoder recommends considering these factors: • Enrollment for direct and countercyclical payments (DCP) and ACRE begin this week. ACRE enrollment ends June 3; DCP enrollment ends Aug. 2. • Direct payments will be issued after Oct. 1, with no advance payments. • With ACRE enrollment, a producer forfeits 20 percent of direct payments. However, Yoder noted the possibility Congress could cut direct payment funding for 2013 anyway, meaning ACRE enrollment essentially would be “free.” • ACRE enrollment forfeits 30 percent of a producer’s marketing loan benefits. • ACRE benchmark revenue calculation includes a
five-year Olympic average of state yields, excluding high and low years. Thus, 2012 drought-impacted yields will be excluded for corn and soybeans as the
would be extremely high, given all-time high price averages over the past two years, Yoder said. That cap will reduce 2013 benchmark revenues for corn
‘It’s not all that likely it would pay in 2013, but it could.’ — Gary Schnitkey U of I ag economist
low year in the average. • The revenue calculation includes the marketing year price average for the previous two crop years. If not for a 10 percent program cap on benchmark revenues from one year to the next, 2013 revenues (program guarantees)
and soybeans, thus reducing potential for an ACRE payment for the 2013 crop year. The cap reduces the corn benchmark from $997 per acre to $776 per acre and the soybean benchmark from $565 per acre to $535 per acre.
Schnitkey: Re-examine possible GRIP-HR benefits Given the possibility of a “low-price scenario” in 2013 (see accompanying story), Illinois farmers may want to take a new look at county-based revenue coverage, University of Illinois ag economist Gary Schnitkey suggests. Group Risk Income Plan (GRIP) insurance pays when county revenue falls below a
Illinois Farm Bureau’s Doug Yoder detailed 2013 risk management options last week at regional seminars across Central Illinois. Further seminars are set Feb. 25 through March 12.
prescribed revenue guarantee. Farmers can opt for GRIP with a harvest revenue
SOUTH AMERICA IS TAKING OUR PLACE. Scary thought, isn’t it? The good news is we can do something about it every time we choose a soybean variety to put into the ground. If we start getting closer to 35 percent protein and 19 percent oil, our beans would be a lot more attractive to domestic livestock producers and foreign markets— and we’d help stop the loss of export share to Brazil and other foreign competitors. It’s time to talk with your seed dealer or Certified Crop Adviser about protein and oil. Then visit VIPsoybeans.org to validate your seed selection and ilsoy.org for more information.
option (GRIP-HR), including a guarantee that increases if harvest price exceeds
spring base price, or GRIP without the harvest option. In 2011, some 1.3 million Illinois corn acres (13 percent of all insured corn acres statewide) were insured using GRIP. However, coverage was down 60 percent over 2006. That decline was attributed to higher projected prices that spurred farmers to heighten individual farm protection, increased GRIP premiums at higher coverage levels, and new enterprise unit subsidies that lowered the cost of farmlevel policies such as Revenue Protection (RP) coverage. “A lot of farmers are concerned about the possibility of drought — a 2013 that looks like a 2012 — but GRIP also would make larger payments than RP would if we had a price-decline sort of scenario,” Schnitkey told FarmWeek, however. That said, GRIP-HR carries higher premiums than RP. Premiums for an RP enterprise unit are $21.86 per acre for an 85 percent coverage level, $10.63 per acre for 80 percent coverage, or $5.14 for 75 percent coverage. GRIPHR premiums are $33.29 per
acre for 60 percent coverage and $55.48 per acre at the 100 percent protection level. Further, GRIP-HR does not offer replant or prevented planting provisions, and it’s possible to have a low farm yield but county yields high enough that insurance payments are not triggered. GRIP-HR makes payments in the year after the crop is harvested — no payments have been made for 2012 because USDA has not yet released 2012 county yields. One other proviso: A new High Risk-Alternative Coverage Endorsement (HR-ACE) is not available under county-based policies such as GRIP. With HR-ACE, producers can opt for separate reducedyield coverage on high-risk acres within a county or, in the event general acres are covered under a revenue policy, either revenue protection at a lower coverage level or simply an equal or reduced level of yield coverage. March 15 is sales closing date for federal crop policies. — Martin Ross
Spending Continued from page 1 need to quickly pass the Senate farm bill, arguing currently extended 2008 farm bill provisions aren’t “nearly as good.” Rep. Adam Kinzinger, a Manteno Republican, said he was hopeful the House Ag Committee would be able to bring a long-term, bipartisan farm bill to a vote this year. “To be honest, with what’s going on, you’re probably going to see an end to direct payments,” Kinzinger said. “But, hopefully, you’ll see a continuation of (a strong crop insurance program), which is very important for agricultural families.”
Page 7 Monday, February 18, 2013 FarmWeek
livEsTOcK
Want to add livestock to the farm? Talk to your neighbors BY DANIEL GRANT FarmWeek
Farmers who want to build or expand livestock facilities in the state last week were advised to develop a communication plan as part of the project. Discussions with neighbors, community leaders, and others prior to announcing facility construction plans often increase support and reduce the amount of local pushback to new projects, according to industry leaders who discussed the topic last week at the Illinois Livestock Forum in Springfield. The event was hosted by the Illinois Soybean Association. “Up front communication with neighbors is the single biggest thing that will impact how your expansion or con-
struction goes,� said Matt Henry, business development manager for The Maschhoffs, a familyowned pork production network based in Carlyle. “Don’t let the notice of intent to construct be the first time Matt Henry (neighbors) hear about what you’re doing.� Jeff Wilson, senior commercial lending executive for First Financial Bank in Olney, works with clients who want to build or expand livestock operations. He has attended numerous public hearings as part of the process. “I had no idea there was so much lack of knowledge about what seems like common
Pork producers expand outreach efforts to consumers, retailers Pork industry leaders at the Illinois Pork Expo this month said the job for producers has expanded beyond raising quality pork at affordable prices. It now is vital for pork producers to also engage consumers and, when possible, talk to retailers so more people understand how pork is produced, how farmers care for their animals, and how pork can be beneficial in diets. Pork is the most widely eaten meat worldwide, accounting for about 42 percent of all meat consumed, according to Purdue University. But pressure from animal activist groups and misinformation about production practices on the Internet and social media have put pork producers, along with other farmers, under the microscope in recent years. “We’re really making an effort to reach out there (to food retailers and consumers) to make sure they understand what’s happening on the farm and about production practices,� said Todd Rodibaugh of the National Pork Board. The pork industry in recent years established the “We Care Initiative,� which emphasizes ethical principles of pork production, and the Pork Quality Assurance (PQA) Plus Program, which is an education and certification program designed to help pig farmers and their employees use best practices to promote food safety. “We really want all farmers and their employees to make sure they follow all the ethical principles and that they’re doing the right thing on a daily basis,� Rodibaugh said. “We (in the pork industry) are under the microscope. Any sort of trip up can hurt not only a producer’s operation but the industry as a whole.� The National Pork Board distributed copies of the 2012 Pork Industry Progress Report during the expo. The report showed participation in the PQA Plus Program last year reached a record-high 55,000 individual certifications. A Pork Checkoff study also showed the pork industry from 1959 to 2009 reduced its land use for feed by 78 percent, lowered water use by 41 percent, and cut its carbon footprint by 35 percent. Pam Janssen, a pork producer from Minonk who was chairman of the Illinois Pork Expo, said the Illinois Pork Producers Association plans to expand its consumer and retailer outreach efforts. “We have to take every opportunity we can to educate the public and promote our product,� Janssen said. “I’ve been involved in Illinois Farm Families (IFF) and it’s a fantastic way to educate the public.� IFF represents farmers who support the Illinois Farm Bureau, Illinois Pork Producers, Illinois Corn Marketing Board, Illinois Soybean Association, and the Illinois Beef Association. — Daniel Grant
knowledge to me,� said Wilson, who grew up on a dairy farm. “You (livestock farmers) have to go into discussions (with neighbors and local leaders) assuming they know nothing (about production ag).� Wilson said Jeff Wilson he believes the facts about production practices and the economic impact of facilities are vital information to share in each community. The Illinois livestock industry generates $27 billion annually in economic activity and $292 million in annual state tax revenue, according to the Illinois Livestock Development Group website {Illinoislivestock.org}. “More livestock in Illinois is good for all of us, especially in this business climate,� Henry said. “We have great interest in expanding in Illinois,� he continued. “We have the inputs and ability to process the animals.� One of the top concerns about new or larger livestock facilities is the potential odor. Henry said odor issues have been greatly minimized in recent years through the use of tree buffers around livestock
barns and feed technology that reduces dust. Dust is what carries odor, he noted. Henry also encouraged livestock farmers to communicate with nearby crop farmers about the advantages of
using manure to replace or reduce their commercial fertilizer purchases. Manure fertilizer can lower the operation costs for a crop farmer by $130 to $150 per acre, he said.
DATEBOOK Feb. 17-23 Food Check-Out Week Feb. 20-21 Illinois Farm Bureau Governmental Affairs Leadership Conference, Crowne Plaza Hotel, Springfield. Feb. 25 IFB Crop Insurance and Truck Regulations seminars, 8 a.m., Lincoln Land Community College’s Trutter Center, Springfield, and Madison County Farm Bureau, 1 p.m., Edwardsville. To register go to {ilfb.org/regionalseminars} at least three days prior to the event. For more information, email jharrison@ilfb.org or call 309-557-3207. Feb. 26 IFB Crop Insurance and Truck Regulations seminars, 8 a.m., John A. Logan Community College’s H 127 and 128, Carterville, and 1 p.m., First Christian Church, Salem. To register go to {ilfb.org/regionalseminars} at least three days prior to the event. For more information, email jharrison@ilfb.org or call 309-557-3207. Feb 26 Meet the Buyers event 9 a.m. to 5 p.m., Heartland Community College, Normal. Registration deadline is Feb. 22. Call McLean County Farm Bureau at 309-663-6497 to register. Feb. 27 IFB Crop Insurance and Truck Regulations seminars, 8 a.m., The Holiday Hotel, Olney, and 1 p.m., Lake Land Community College’s West Building, Mattoon. To register go to {ilfb.org/regionalseminars} at least three days prior to the event. For more information, email jharrison@ilfb.org or call 309-557-3207.
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FarmWeek Page 8 Monday, February 18, 2013
markets
Biodiesel sector prospects looking up for 2013 BY MARTIN ROSS FarmWeek
As the ethanol sector struggles with production, policy, and market challenges), the biodiesel industry has several reasons to feel optimistic about 2013 — and secure in its vision for the next decade. The National Biodiesel Board (NBB) has unveiled its 10x22 “vision” aimed at including biodiesel in 10 percent of the diesel fuel supply by 2022. The 10x22 plan hinges on boosting on-road biodiesel use but also anticipates use of various blend levels in various applications such as marine fuels and home “bioheat.” NBB argued “continuing
technological breakthroughs in research on raw materials” will help biodiesel producers and marketers meet 2022 goals. According to GROWMARK
let Cruze light-duty diesel passenger car approved for use with 20 percent biodiesel blends (B20). While B11 is a preferred blend across much
‘Things are looking a little more positive both from the demand and the cost sides.’ — Mark Dehner GROWMARK
renewable fuels marketing manager Mark Dehner, the industry already is off to a promising start. General Motors has launched a new 2014 Chevro-
of the state because of Illinois’ fuel tax break for ethanol and biodiesel, Dehner noted engine manufacturers largely have cleared B20 use in newer models and characterized B11
Alpaca association launches website The Alpaca Owners and Breeders Association (AOBA) has launched a newly designed website at {alpacainfo.com}. The website ser ves as an infor mation source for the alpaca industry as a whole. Topics include: barns, pastures, fences, genetics, herd evaluation, and environment.
Another feature is a far m and ranch locator. A marketplace feature offers raw fiber and different products made from alpaca fiber. Alpacas, cousins to the llama, are native to the Andean Mountain range of South America. U.S. owners and breeders first commercially imported alpacas in 1984.
as the “floor” for future use. The U.S. Environmental Protection Agency (EPA) has set a 1.28-billion-gallon target for biodiesel and other “biomass diesel” use in 2013 under the Renewable Fuel Standard (RFS2). That’s a 280-million increase over 2012. And Congress recently reactivated the $1-per-gallon biodiesel tax credit for 2013 and retroactively for 2012, giving fuel blenders an incentive to adopt biodiesel blends. “The reinstatement of the blender’s credit is a big deal,” Dehner told FarmWeek. “I don’t know that there’s euphoria in the industry, but things are looking a little more positive both from the demand and the cost sides.” Danforth Plant Science Center researchers are touting new technology that could spur a 2 percent or higher increase in soybean oil content without loss of yield or protein quality. That purportedly could add 500 million gallons of oil to the biodiesel feedstock supply in the near term without affecting feed supplies. Dehner said he anticipates increased U.S. introduction of more light-duty vehicles such as the Cruze as automakers strive to meet tighter federal fuel efficiency standards. He noted the mileage is much better in diesel than in gas-powered vehicles.
BIODIESEL NUMBERS
10 percent The percentage of the U.S. on-road diesel fuel market the National Biodiesel Board (NBB) hopes to penetrate under its new 10-year “10x22” biodiesel “vision.”
1 billion Gallons of biodiesel produced nationwide in 2012.
21 billion Minimum gallons of U.S. “advanced biofuels” use mandated by 2022 under the federal Renewable Fuel Standard (RFS2). Biodiesel currently is the only widely used renewable fuel in that category, and the NBB hopes to capture a key share of that demand, beyond RFS2 renewable diesel requirements.
78 percent Reductions in dieselrelated net carbon dioxide “greenhouse gas” emissions achievable through production and use of biodiesel vs. conventional diesel, according to USDA and the Department of Energy. Greenhouse emissions reductions are key to classification of advanced biofuels under the RFS2.
Tuesday: • Ag weather with Chesapeake Meteorology • Mike Meyers, local procurement buyer for Walmart • Cynthia Haskins, manager of business development and compliance for Illinois Farm Bureau • Doug Yoder, senior director of affiliate and risk management for IFB Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Jim Bower, Bower Trading • Ross Korves, economic policy analyst, Truth About Trade & Technology Thursday: • Representative Illinois Pork Producers Association from • Chad Schutz, IFB board member • Rita Frazer live from Governmental Affairs Leadership Confer ence Friday: • Sara Wyant, publisher Agri-Pulse
• IFB President Philip Nelson • Ross Prough, at large director of the Illinois Soybean Associa tion
To find a radio station near you that carries the RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”
Page 9 Monday, February 18, 2013 FarmWeek
RuRal liFe
Winstead: Corn market carries downside risk BY DANIEL GRANT FarmWeek
The supply and demand picture for crops suggests soybean prices should remain strong while the corn and wheat markets could struggle. Cory Winstead of AgriVisor last week predicted U.S. corn exports will continue to
FarmWeekNow.com Listen to the latest AgFanatics podcast with Cory Winstead at FarmWeekNow.com.
decline and stocks likely will increase this year. USDA this month raised ending stocks of corn by 30
million bushels to 632 million. A big crop this year easily could push corn stocks above 1 billion bushels, Winstead noted. “The downside risk is much greater than upside potential for March corn,” Winstead said last week at the Illinois Wheat Forum in Mt. Vernon. Corn demand has been hurt
Rund: Township sharing, merging possible BY KAY SHIPMAN FarmWeek
Kevin Rund, Illinois Farm Bureau senior director of local government, recently fielded a question about whether townships can reduce expenses through sharing ownership and purchases or use of equipment, materials, and services. His response: Townships, themselves, can be merged. And the county can restructure nontownship road districts. Although I am focusing on township road districts, this also may apply to other units. First, merging of township road districts is possible. The merger would apply only to the road districts, not the township governments that would continue to function independently. A merger must be done through referendum approved by a majority of voters in each township. Sharing of township equipment is possible — and encouraged. Sharing among townships
or with a county or a municipality may be done through an intergovernmental agreement. In addition, the Illinois Constitution encourages intergovernmental cooperation. Such cooperation may apply not only to road districts but also to any and all forms of local governments. IFB policy supports cooperative efforts between local governments and locally approved consolidations. County Farm Bureau leaders may discuss the use of cooperative agreements with their county and township officials and boards. Often, county engineers may help initiate or facilitate sharing of road equipment and purchases. Sometimes, encouragement from local constituents is all it takes to prompt townships to seriously consider sharing.
Schools may still apply for wind ed program The Illinois Wind for Schools (ILWFS) program is accepting applications from middle school and high school teachers in Illinois public school districts through March 1. Three to five schools will be selected each academic year for a program to incorporate wind energ y into their curriculum and provide outreach to their communities. Each selected school will receive intensive support through on-site teacher training and classroom resources. Applications are available online at {ilwfs.org}. Selected schools will be notified by April 2.
National AgrAbility workshop set Farmers with disabilities and the professionals who work with them will receive training and an issue update at the 2013 AgrAbility National Training Workshop April 811 in Minneapolis, Minn. The early registration deadline is March 15. The workshop will be held in the Doubletree Hotel. Participants may attend preconference sessions and tours, breakout sessions featuring speakers from around the country, and tours of local agricultural enterprises. Participants also may attend sessions devoted to agricultural production and learn about financial planning for agribusinesses; funding opportunities, such as Sustainable Agriculture Research and Education grants and USDA Farm Service Agency loans; product marketing and estate/succession planning. Detailed conference information is online at {workshop.agrability.org/2013}. Register online at {conf.purdue.edu/agrability}. After March 15, registrations through April 5 will include a late fee. For more information, call 765-494-6679 or email khendres@purdue.edu.
by slumping exports (USDA this month lowered its export forecast by 50 million bushels) and decreased ethanol production. Ethanol plants that were running at 95 to 97 percent capacity last year currently are running at about 83 percent capacity, Winstead said. “Ethanol plants haven’t been profitable the past 13 months,” he said. USDA this month lowCory Winstead ered ending stocks of wheat 25 million bushels. But Winstead believes wheat supplies are sufficient to meet demand. “There is a solid supply of wheat,” he said. “(Ending stocks) still are at a comfortable level.” Winstead predicted wheat prices could slip to around $7 per bushel while corn futures are in danger of sliding to a range of $5 to $6 if demand remains weak and prospects for
a big crop remain good. Investment fund managers also have been selling out of corn and wheat recently, which could be a drag on those markets. The soybean market, on the other hand, should remain strong despite an influx of beans entering the market from South America. Winstead believes demand for beans will remain high and logistics issues could keep South America from flooding the market with beans. “I don’t see any sign of soybean exports slowing down, although there may be a hiccup when South American (beans) come on line,” he said. USDA this month cut soybean ending stocks 10 million bushels to a razor-thin 125 million bushels. “I don’t think we’ll run out of beans,” Winstead said. “But the fear of it will keep prices strong.” More market infor mation, including new AgFanatics podcasts featuring Winstead, are available online at {agrivisor.com}.
FarmWeek Page 10 Monday, February 18, 2013
MEETINGS
Farmers in 3 watersheds eligible for national water initiative A National Water Quality Initiative (NWQI) will continue in fiscal year 2013, according to Natural Resources Conser vation Ser vice (NRCS) State Conservationist Ivan Dozier. The signup deadline is March 15. NRCS will manage the initiative and make financial and technical assistance available to far mers and forest landowners to improve water quality in three priority watersheds in Illinois. The NWQI was offered in three Illinois watersheds last year. NRCS will continue to accept additional applications within the same three watersheds this year. The watersheds are: • Douglas Creek Watershed, 14,300 acres in St. Clair County; • Crooked Creek-Bon Pas Watershed, 33,266 acres in parts of Richland, Wabash, Edwards, and Lawrence counties; and • Lake Ver milion Watershed, 17,656 acres in Ver milion County. Eligible far mers with problems, such as soil erosion and water quality, may apply for funds from the Environmental Quality Incentives Program (EQIP) to install such conser vation practices as cover crops, grassed waterways, ter races, and water and sediment control basins on their land. While NRCS accepts applications for financial assistance on a continuous basis, the agency will use a March 15 cutoff application date for the NWQI in Illinois. If funds remain, there will be a second application period through May 17. Eligible far mers should contact their local NRCS field office.
Kaskaskia Watershed Association to host informational summit
The Kaskaskia Watershed Association Inc. will host a summit from 9 a.m. to 2 p.m. March 11 at the Mariners Village Resort Conference Center, Carlyle. Registration will begin at 8:30 a.m. The registration deadline is March 4. A $20 fee will include lunch and morning refreshments. Summit presenters will focus on efforts to protect the lands and waters of the Kaskaskia Watershed. Morning speakers and topics will include: Jean Payne, president of the Illinois Fertilizer and Chemical Association, who will speak on the Keep it for the Crop and the
Nutrient Research and Education Council programs; Dan Schaefer, Illinois Council on Best Management Practices, who will address nutrient management strategies; and Mike Plumer, coordinator of Illinois Council on Best Management Practices, who will talk on cover crop uses in nutrient and soil management. Afternoon speakers and topics will include: Joan Stemler, U.S. Army Corps of Engineers, who will give a water control update; and Vern Knapp, Illinois State Water Survey hydrologist, who will discuss the 2012 drought and the impact of severe droughts
on water supply in the Kaskaskia Watershed. Allie McCreary, environmental programs technician with the Heartlands Conservancy, will discuss the “Comprehensive Evaluation and Plan for the Regional Water Supply of the Kaskaskia Basin through 2050.” For more information or to register, contact Roberta Lasalvia, HeartLands Conservancy, at 618-566-4451, extension 12, or email her at roberta.lasalvia@heartlandsconservancy.org. Checks should be made payable to HeartLands Conservancy. Credit cards are accepted.
Farmland owner meetings slated in East Peoria Illinois Central College will host a three-part program for far mland owners to help them better manage
their far mland and increase their economic return. The program is sponsored by Illinois Central College department of agriculture and industrial technologies and BK Solutions, based in Mahomet. The program will be on Tuesdays — Feb. 19 and 26, and March 5 — with a different topic presented each date. All meetings will begin at 5:30 p.m. and conclude at 8:30 p.m. with light refreshments ser ved. The meetings will be held at Illinois Central College (ICC), 1 College Drive, East Peoria, in the Ag and Industrial Technologies Building, Room 203. Sessions will cover the following topics: current far mland lease trends, far mland values and invest-
ment returns, far mer profitability in today’s marketplace, deter mining Illinois Soil Productivity Indexes for your far mland, and understanding basic soils and soil fertility. Program presenters will include Kevin Brooks of BK Solutions and Pete Fandel, instructor of agriculture at ICC. The enrollment fee is $100, which will cover snacks and a binder of program materials on the topics discussed. Pre-registration is requested. To register, contact Pete Fandel at 309694-5410 or email him at pete.fandel@icc.edu or Kevin Brooks at 217-5863894 or email him at kwbrooks@bksolutionsonline.com.
Travelwith Travel withother other F Farmers! Farmers! National Parks T Tour our of the G olden West Depa p rt Jullyy 12 & August g 23,, 2013 from
14
Days
$1358*
Fly into Las Vegas for one night. Then you will begin your tour and visit landmarks in NINE NA ATIONAL TIONAL PARKS. Witness the giant Redwood trees in Kings g Canyon and Sequoia q National Parks, then be amazed at the rock ffor ormations and water falls in Yosemite National Park. Visit majestic Lake Tahoe and Reno, stop in historic Virginia City, Winnemucca and Wendover, Nevada. In Utah tour the world’s largest man-made excavation – the Kennecott Copper Mine plus the Great Salt Lake! Next tour the unique rocks Arches’ National Park; and Canyonlands, onlands with enchantingvistascar vedb ythe theCColorado and Green Rivers. Next visit Capit p ol Reef and drive through the Dixie National Forest to Bryce Canyon National Park. Then it ’s the grandest of all National Parks, The Grand Canyon,, for o both a day and night. Finally, tr y your luck in exciting Las Vegas with an included day excursion to Zion National Park. *Price per person, based on double occupancy. Air fare is extra. Other depar ture dates available. Seasonal rates may apply.
For F orrreservations eservations & details call call77da days ysaaww week: eek:
1-800-736-7300
Page 11 Monday, February 18, 2013 FarmWeek
FB IN ACTION
Seven Country agents honored Seven Country Financial agents have been inducted into the insurance and investment company’s Hall of Fame. The inductees this year include the first female recipients. Established in 1990, the Hall of Fame honors financial representatives who have qualified for 20 or more All American awards and agency managers with 10 years of qualification as a manager and been named All American 20 times. The inductees include: • Jim Carlson, Peoria, who
has been with Country since 1991; • Kevin Garber, Rapids City, who has worked for Country since 1986 and currently is the Mercer-Rock Island agency manager; • Mike Morris, Princeton, who has served clients in Bureau and Stark counties since 1980; • Rick Rodhouse, Pleasant Hill, who has served the Pike County area since 1975; • Carol Stolze, Glen Carbon, who has served Madison County since 1993; • Cary Tate of Lemont, who has worked for Country since 1987 and is Orland Park agency manager; and • Cheryl Zanders, Red Bud, who has served Randolph County since 1988.
Auction Calendar
WYANET, IL. Rediger Auction Service and Brummel Realty, LLC. www.rickrediger.com or www.brummelrealty.com Thurs., Feb. 28. McLean Co. Farmland. Len Jones Trust Heirs. Soy Capital Ag Services. www.soycapitalag.com Thurs., Feb. 28. 9 a.m. Peoria Co. Farmland. Marcus W. Britton, DUNLAP, IL. Jim Maloof Farm and Land, John Leezer. www.illinoisfarms4sale.com Fri., Mar. 1. 10 a.m. McLean Co. Land Auc. STANFORD, IL. Farmers National Co. www.farmersnational.com Fri., Mar. 1 and Sat., Mar. 2. 9:30 a.m. both days. Consignment Auction. RANTOUL, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Mar. 2. 9 a.m. Farm Machinery. Dean Monke Farm, MT. OLIVE, IL. Ahrens and Niemeier. www.a-nauctions.com Sat., Mar. 2. 26th Annual Con. Auc. Murrayville-Woodson Emergency Ambulance Service. mweas.com Sat., Mar. 2. 10 a.m. Calhoun Co. Land Auc. PLEASANT HILL, IL. Buy A Farm. buyafarm.com Sat., Mar. 2. 9 a.m. Farm & Construction Eq. Consignment Auc. TREMONT, IL. Cal Kaufman and Brent Schmidgall, Auctioneers. kaufmanauction@aol.com or brentschmidgall@yahoo.com Sun., Mar. 3. 9 a.m. Consignment Auction. Murrayville Woodson EAS, MURRAYVILLE, IL. Mweas.com Tues., Mar. 5. 10 a.m. McDonough Co. Land Auc. Jack and Nancy Laverdiere, MACOMB, IL. Sullivan Auctioneers, LLC. www.sullivanaucitoneers.com Wed., Mar. 6. 10 a.m. Knox Co. Land Auc. Deets Family, GALESBURG, IL. Van Adkisson Auction Service, LLC. vanadkisson.com Wed., Mar. 6. 10 a.m. Champaign Co. Farmland Auc. URBANA, IL. murraywiseassociates.com Thurs., Mar. 7. Spring Farm Closeout and Consignment Auc. Agri-Tech, Inc, RAYMOND, IL. Thurs., Mar. 7. McLean Co. Farmland Auc. Soy Capital Ag Services. www.soycapitalag.com Fri., Mar. 8. 10 a.m. Iroquois Co. Farmland Auc. Gladys Niemann Trust, BUCKLEY, IL. Bill Kruse, Auctioneer. billkruse.net Fri., Mar. 8. 10 a.m. Vermilion Co. Land Auc. HOOPESTON, IL. Hertz Real Estate Services. www.hertz.ag Fri., Mar. 8. 9 a.m. Consignment Auc. GREENVIEW, IL. Ron Sanert, Gordon Watkins and Eldred Nehmelman, Auctioneers. Auctionzip.com auction id2473 or topauctions.com Sat., Mar. 9. 9 a.m. Consignment Auction. BALDWIN, IA. Powers Auction Service. www.powersauction.com Sat., Mar. 9. 10 a.m. St. Clair Co. Land Auc. MARISSA, IL. buyafarm.com
Tues., Feb. 19. 11 a.m. Farm Eq. Closing Out Auc. Donnie and Linda Hoeft, DELAVAN, IL. Nehmelman Auction Co. and Ron Sanert, Auctioneers. topauctions24-7.com/nehmelman or auctionzip.com Thurs., Feb. 21. 10 a.m. Farm machinery. Mike and Susan Seitzinger, LAWRENCEVILLE, IL. Parrott Auctions. www.parrottauctions.com or www.auctionzip.com id 4851 Fri., Feb. 22. 12 Noon. Annual IL Beef Expo Livestock Eq. Auc. SPRINGFIELD, IL. Cory Craig, Auctioneer. www.corycraig.com Fri., Feb. 22. 7 p.m. Farmland Auc. Benjamin Howard Tull Est., SHELBYVILE, IL. Gordon Price Auction Service. www.priceauction.com Fri., Feb. 22. 9 a.m. Consignment Auction. MORRIS, IL. Richard A. Olson and Assoc. www.richardaolson.com Fri., Feb. 22. 6 p.m. Edwards Co. Farmland Auction. The Melvin W. Crackel Trust and Nadine M. Crackel Trust, ALBION, IL. Barnard Auctions. www.auctionzip.com id 2008 Sat., Feb. 23. 9 a.m. Annual Spring Consignment Auc. ORCHARDVILLE, IL. daggsauction.com or auctionzip.com #3058 Sat., Feb. 23. 10 a.m. Estate Auc. Of Farm Eq. Mrs. Virgil Vortman, Executor of the Estate of Virgil Vortman, BLUFFS, IL. Dick Samples, Roger Strang and Darrell Moore, Auctioneers. www.auctionzip.com id #11367 Sat., Feb. 23. 10 a.m. Absolute Real Estate Auc., DECATUR, IL. Central IL Auctions. Sat., Feb. 23. 9 a.m. Farm Machinery Con. Auc. WATELROO, IL. Schaller Auction Service. www.schallerauctionservice.com or www.auctionzip.com Sat., Feb. 23. 10 a.m. Shelby Co. Land Auc. Michael A. Rhoden and Sharon R. Glennon, STEWARDSON, IL. Krile Auction Service. www.auctionzip.com id #6524 Sat., Feb. 23. 10 a.m. Gallatin Co Land Auc. www.buyafarm.com Tues., Feb. 26. 9 a.m. Annual Spring Farm Machinery Con. Auc. CARLINVILLE, IL. Rick Stewart, Auctioneer. www.rickstewartauctions.com or www.biddersandbuyers.com Tues., Feb. 26. 10 a.m. Modern Clean Farm Eq. Edwin Lawrence Estate, WARRENSBURG, IL. Mike Maske Auction Service. www.maskeauction.com Tues., Feb. 26. Douglas Co. Land Auc. Justus Seaman Trust Farm. Soy Capital Ag Services. www.soycapitalag.com Wed., Feb. 27. 10 a.m. Bureau and Stark Co.’s Farmland Auc. Brummel Realty, LLC Wed., Feb. 27. Online Only Unreserved Auc. www.bigiron.com Wed., Feb. 27. 10 a.m. Bureau/Stark Counties Farmland. Paul and Cluskey,
For a complete auction listing go to farmweeknow.com
SHARING AG KNOWLEDGE
The Cook County Farm Bureau Ag in the Classroom (AITC) program last week invited three Chicago High School for Agricultural Sciences students to job shadow Diane Merrion, AITC literacy coordinator for the county. The purpose was to give the students firsthand experience in the field of ag literacy for elementary students. Lakia Martin, Mia Perkins, and Dara Robertson (the latter of whom is shown here) started their day at Mt. Greenwood Elementary School in Chicago. Each participated in the program by sharing some of their ag knowledge with the fourth grade class. The students also toured the Farm Bureau office in Countryside to learn more about the functions of the Farm Bureau. (Photo by Diane Merrion, Cook County AITC literacy coordinator)
FarmWeek Page 12 Monday, February 18, 2013
IFB IN ACTION
Illinois student wins AFBF Collegiate Discussion Meet University of Illinois freshman Jacob Meisner applied his knowledge of and passion for agriculture education to win the American Farm Bureau Federation Jacob Meisner Collegiate Discussion Meet in Phoenix, Ariz. He competed against 48 other contestants from across the country. As a former state FFA officer and ag education major, Meisner said he felt comfortable discussing the ways Farm Bureau can help high school ag programs remain viable. “We should try to engage Farm Bureau members to reach out to the community ...
to showcase the program,� Meisner recalled as he was making his way home from Phoenix. By highlighting the value of ag programs and the impact they can have on their communities, Farm Bureau members can raise support among community members and legislators, he added. Meisner thanked the Illinois Farm Bureau Young Leader program and Jennifer Smith, IFB Young Leader manager, for helping him prepare for the national contest. He received a $2,500 scholarship from the CHS Foundation. He is the son of John and Donna Meisner of Piasa in Macoupin County. Jim Tobin, a Southern Illinois University student, also represented IFB Young Leaders in the contest. Tobin of Farmer City in DeWitt County is a double major in general agriculture and political science.
County Farm Bureau managers from Southern Illinois last week took part in an issue strategy session at the Franklin County Farm Bureau in Benton with staff from the Illinois Farm Bureau. Here Adam Nielsen, IFB director of national legislation and policy development, addresses the managers. The session, similar to ones held in Central and Northern Illinois, strived to strengthen partnerships between IFB and county Farm Bureaus on organization strategy to address public policy issues such as the farm bill, the state budget, and heightened interest in hydraulic fracturing for natural gas along with a renewed look at oil drilling. (Photo by Mike Orso)
Food Check-Out Week: Time to reach out Many county Farm Bureaus will connect with consumers during Food Check-Out Week Feb. 17-23. This is a good opportunity to answer questions about how crops are grown and livestock and poultry are raised. The third week of February was selected for Food CheckOut Week to celebrate American food and as a bridge to National Nutrition Month in March. This year, the emphasis is buying healthy, nutritional food to stretch consumers’ food budgets. In Phoenix, Ariz., the American Farm Bureau Federation Women’s Leadership Committee donated food and money to Ronald McDonald House Charities. Since the mid-1990s, Farm Bureau members have donated more than $3 million in food and money to Ronald McDonald Houses and other charities during Food Check-Out Week.
WE SALUTE America’s Agricultural Youth
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Page 13 Monday, February 18, 2013 FarmWeek
from the counties
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UREAU — Far m Bureau will sponsor a meeting at 6 p.m. Monday at the Far m Bureau office for members who would like to ser ve on the county Far m Bureau’s 100th Year Celebration Committee. Contact the Far m Bureau office if you are interested in helping compile the history of the organization. • Far m Bureau will host an infor mational meeting for the Sept. 8 to 15 Cuba trip at 2 p.m. Tuesday, Feb. 26, at the Far m Bureau office. • Far m Bureau will sponsor an infor mational meeting for the Mackinac Island and Agawa Canyon Rail Adventure at 2 p.m. Monday at the Far m Bureau office. The trip is scheduled for Aug. 12 to 18. ARROLL — Far m Bureau Foundation scholarship applications are available at {carrollcfb.org} or by calling the Far m Bureau office at 2443001. Applications must be in the Far m Bureau office by March 1. LARK — The Young Leader Committee will host a pizza party at 7 p.m. Tuesday, Feb. 26, at the Far m Bureau office. Members under the age of 40 and their families may attend. Call the Far m Bureau office for reser vations. • Far m Bureau will cosponsor a truck seminar at 4 p.m. Thursday, March 7, at the Kansas School in Kansas in Edgar County. Kevin Rund, Illinois Far m Bureau senior director of local government, will be the speaker. OLES — Far m Bureau Foundation scholarships are available. Application deadline is March 15. Call the Far m Bureau office at 345-3276 or email colescfb@consolidated.net for an application or more infor mation. • Far m Bureau’s Far m Mall Show will be Friday through Sunday, March 1 to 3, at the Cross County Mall in Mattoon. Young Leaders will host a kiddie tractor pull at 12:30 p.m. Saturday, March 2, for children weighing up to 100 pounds. Registration will be at noon. Call the Far m Bureau office at 345-3276 for more infor mation. OOK — Far m Bureau members are eligible to purchase discounted movie theater tickets. Call the Far m
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Bureau office at 354-3276 to purchase tickets or for more infor mation. RAWFORD — Far m Bureau’s annual meeting will be at 6 p.m. Thursday, Feb. 28, at the Robinson Community Center. Rich Guebert Jr., Illinois Far m Bureau vice president, will be the speaker. Call the Far m Bureau office at 544-3792 for reser vations. Reser vation deadline is Feb. 25. DGAR — The Marketing Committee will host a market and weather outlook meeting at 10 a.m. Tuesday at the Farm Bureau building. Larry Acker of 3F Forecasts will be the speaker. Call the Farm Bureau office at 465-8511 or email edgarcfb@midwestfirst.com for reservations. • The Paris FFA Alumni will host a pork chop dinner from 5 to 7 p.m. Thursday in the Ag Building to raise funds for scholarships. • Paris and Shiloh FFA chapters will take orders for strawberries that will be shipped directly from Florida in early March. Order deadline is Friday. Call the Farm Bureau office or Paris or Shiloh schools to place an order. • Farm Bureau will sponsor a technology meeting from 9:30 to 10:30 a.m. Tuesday, Feb. 26. Participants are asked to bring their iPhone, smart phone, tablet, iPad, and favorite apps to share. There will be a limited number of devices available for demo installation purposes. Discussion will include increasing efficiency through the use of apps. For reservations, call the Farm Bureau office at 465-8511 or email edgarcfb@midwestfirst.com. • Far m Bureau will host a transportation seminar from 4 to 6 p.m. Thursday, March 7, at Kansas High School. Kevin Rund, Illinois Far m Bureau senior director of local government will discuss the new trucking regulations. Call the Far m Bureau office to register. ULTON — The Women’s Committee will sponsor the “I Shopped the Sheriff ” grocery cart race at 9 a.m. Wednesday, Feb. 20, at the Lewistown County Market to commemorate Food Check-Out Week. Sheriff Jeff Standard will race against Coroner Steve Hines. ANCOCK — Far m Bureau Foundation scholarship applications are available to students
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who are a child of a Far m Bureau member and pursuing a degree in agriculture. Preference is given to students with exceptional scholastic ability, leadership skills, school and community involvement, and/or financial need. Previous scholarship winners are not eligible. Scholarship applications are available at the high schools and at the Far m Bureau office. Three $1,000 scholarships will be awarded. Call the Far m Bureau office at 357-3141 or email hcfboffice@gmail.com for an application. Applications must be received in the Far m Bureau office by April 1. ACKSON — The Young Far mer’s Committee will give away a variety of oak tree saplings. The trees will be available at the Far m Bureau office in early April. Call the Far m Bureau office at 6843129 to reser ve your trees. Supplies are limited. • Far m Bureau Marketing Committee will sponsor a weather outlook and soils and tiling meeting at 6 p.m. Thursday, Feb. 28, at the Far m Bureau office. Nick Hausen, WSIL News 3 meteorologist, and Sam Indorante and Scott Martin of the Natural Resource Conser vation Ser vice will be the speakers. Registration is not required. ANKAKEE — Far m Bureau’s annual meeting will be at 5:30 p.m. Thursday, March 7, at the Hilton Garden Riverstone Conference Center in Kankakee. Steffan Nass, Federal Bureau of Investigation special agent who works to prevent agri-terrorism as a member of the Weapons of Mass Destruction Springfield Division, will be the speaker. Cost is $15 for members and $30 for non-members. Call the Far m Bureau office at 9327471 for tickets. NOX — Far m Bureau will host a weather and market outlook seminar at 6:30 p.m. Tuesday, Feb. 26, at the Knox Agri Center. Eric Apel, Mobile Weather Team Inc. agriculture meteorologist, and Dale Durchholz, AgriVisor market analyst, will be the speakers. Call the Far m Bureau office at 342-2036 or email knoxcfb@knoxcfb.org for reser vations. CDONOUGH — Far m Bureau will sponsor a grain safety training seminar from 9
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a.m. to 4 p.m. Tuesday, Feb. 26, at the Spoon River College Community Outreach Center. Contact the Far m Bureau office at 8373350 or at {mcdonoughcountyfar mbureau.org} for reser vations. ACON — The Enbridge Pipeline open house will be from 5 to 7:30 p.m. Wednesday, Feb. 27, at the Decatur Conference Center and Hotel. Members are encouraged to attend to learn about the project. • Far m Bureau will host a policy development meeting at 6:30 p.m. Wednesday, Feb. 27, in the Far m Bureau auditorium. Call the Far m Bureau office at 877-2436 for more information. ERCER — Far m Bureau Marketing Committee will host a spring market outlook program at 7:30 p.m. Thursday, Feb. 28, at the Far m Bureau office. Bryce Stremming, commodity risk consultant for MID-CO Commodities, will be the speaker. Call the Far m Bureau office at 582-5116 for more infor mation. ONTGOMERY — Montgomery and Macoupin Farm Bureaus welcome O’Reilly Auto Parts in Litchfield and McKay Auto Parts Inc. in Litchfield, Hillsboro, Nokomis, Gillespie, Staunton, Carlinville, and Virden as new memberbenefit providers. Members will receive a 10 percent discount at each store. Membership card must be shown at time of purchase. • Farm Bureau Foundation scholarships are available to students entering college during the 2013-2014 school year who are Farm Bureau members or a child of a Farm Bureau member and pursing an agricultural-related field of study. Six $1,500 scholarships will be awarded. Applications are available at {montgomerycountyfb.com}. Application deadline is noon Monday, March 11. EORIA — Farm Bureau Young Leaders will tour the Keystone Steel and Wire Co. at 1 p.m. Friday. Members 18 to 35 may attend. Call the Far m Bureau office for reser vations or more information. • Far m Bureau will sponsor an estate planning seminar at 11 a.m. Monday, Feb. 25, at Gil’s Supper Club in Hanna City. Rick Morgan, senior financial security consultant with
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Country Financial, will be the speaker. Call the Far m Bureau office at 686-7070 or Country at 686-7050 for reser vations. ERRY — Far m Bureau will sponsor a “25-Cent Breakfast” from 7 to 10 a.m. Saturday at the Lion’s Den in Pinckneyville. TARK — Stark and Peoria Far m Bureaus will host culinar y expert Bill Turney of From the Field Cooking School from 6 to 9 p.m. Monday, March 18, at the Princeville Heritage Museum. Turney will speak on vegetable gardening. Cost is $30. Call the Stark Far m Bureau office at 286-7481 or the Peoria Far m Bureau office at 686-7070 to register. Registration deadline is March 8. TEPHENSON — Far m Bureau will sponsor a trip to Michigan and Ontario, Canada Aug. 12 to 18. Additional seats are available. A brochure is available at {stephensoncfb.org} or at the Far m Bureau office. Call the Far m Bureau office at 2323186 for reser vations or more infor mation. • Far m Bureau will sponsor a trip to Cuba Sept. 8 to 15 with Chamber Explorations. A brochure is available at {stephensoncfb.org}. Call the Far m Bureau office at 232-3186 for a DVD of the PowerPoint presentation. • Applications for the Far m Bureau summer program assistant position are available at {stephensoncfb.org}. Application deadline is Feb. 28. ASHINGTON — The Marketing Committee will sponsor a “Food Buy-Down” from 9 a.m. to 5 p.m. Thursday at Kroger’s in Nashville to celebrate Food Check-Out Week. Customers will receive a $5 discount off of a $50 purchase. NION — The Young Far mer’s Committee will give away a variety of oak tree saplings. The trees will be available at the Far m Bureau office in early April. Call the Far m Bureau office at 833-2125 to reser ve your trees. Supplies are limited.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 14 Monday, February 18, 2013
profitability
U.S. propane market bears watching this spring BY RANDY MILLER
If you’re like me, you’re probably looking forward to warmer temperatures, longer days, and lots of sunshine. This past winter, while not much colder than last year, still seems to be lingering on and on. Randy Miller But warm weather will be here soon. So, what’s the propane outlook moving forward? Below are some keys to watch as we look for an opportunity to make purchases for next year. Inventories: At the end of a fairly cold January, propane inventories remained high with the U.S. carrying about 55 million barrels into February. Our average draw in February and March is about 8 million barrels, so we will likely come out of this winter with 45 million to 47 million barrels in the U.S. Summer builds in propane average about 33 million barrels, so we could start next fall’s heating season at 78 million to 80 million barrels in stock. Supply: U.S. propane production continues to grow, and shale plays contin-
ue to be the talk of the energy industry. Expectations suggest continued growth in production, which has seen an additional 200,000 barrels per day come onto the market since 2011. Even with some natural gas production slowing down due to poor economics, wet gas containing propane and butane continues to increase in production. Demand: Anticipated growth in propane exports has been slowed by limited export facility capacity and a limited number of ships. Gulf Coast facilities continue to be upgraded, and propane exports are expected to reach 240,000 barrels per day once facility upgrades are complete. Propane demand for the petrochemical industry, producers of plastics, etc., has grown dramatically as increased propane has found its way to the Gulf Coast. (See graphic) Most petrochemical facilities are located in the Gulf Coast around refineries and fractionators, where transportation cost for inputs are minimal. If January demand is any indication of what 2013 will bring, petrochemical demand could be a key factor in keeping propane
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10-12 lbs. 40 lbs.
Range Per Head $32.25-$54.12 $65.20
Weighted Ave. Price $43.14 $65.20
This Week Last Week 69,560 58,604 *Eastern Corn Belt prices picked up at seller’s farm
Receipts
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $81.12 $85.63 $60.03 $63.37
Change -$4.51 -$3.34
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week $122.96 NA NA $123.00 $125.00 -$2.00
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 $142.03 $145.43 -$3.40
Lamb prices Slaughter prices - Negotiated, Live, wooled and shorn 128-190 lbs. for 106.65-130 $cwt. (wtd. ave. 117.46)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 2/7/2013 30.02 22.5 14.5 1/31/2013 55.9 15.3 6.3 Last year 39.1 19.0 29.2 Season total 1037.8 622.5 326.7 Previous season total 797.4 693.6 741.3 USDA projected total 1345 1050 950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
inventories in check. What to do? Inventories will be the key to pricing direction this summer. How well production is offset by petrochemical demand and exports will drive prices. Stay in touch with your propane supplier for the latest information on the propane market. Randy Miller is GROWMARK’s propane operations manager. His email address is rmiller@growmark.com.
More nitrogen production could stabilize prices BY DANIEL GRANT FarmWeek
It appears fertilizer prices likely will remain high this planting season due in part to strong demand. Some analysts recently predicted farmers this spring could plant close to 99 million acres of corn if the weather cooperates. Fertilizer prices in Illinois at the end of last month ranged from $875 to $900 per ton for anhydrous ammonia, $575 to $640 per ton for diammonium phosphate, and $540 to $600 per ton for potash, according to the Illinois production cost report issued by the Illinois Department of Agriculture. Jean Payne, president of the Illinois Fertilizer and Chemical Association, last week discussed the outlook for the fertilizer market at the Illinois Wheat Forum in Mt. Vernon. “I’m often asked the question, if we have cheap natural gas (which accounts for about three-fourths of the production costs for nitrogen fertilizer), why are fertilizer prices so high?” Payne said. “The whole paradigm is based on supply and demand.” U.S. nitrogen supplies plummeted the past decade while demand iincreased around the world.
In the U.S., 27 fertilizer production facilities have gone off line since 2000. “We lost a lot of ammonia production in the U.S.,” Payne said. “It becomes a food security issue when you import the majority of the fertilizer used to grow crops.” The paradigm is shifting, though, and U.S. farmers could benefit. The explosion of hydraulic fracturing (fracking), which allows more oil and gas to be extracted from rock formations, has increased supplies of natural gas and lowered prices in the U.S. A few ammonia production plants recently opened in the U.S. and more facilities are planned, Payne said. “U.S. nitrogen production is on the rise. We have more plants coming on line,” she said. “The shale (fracking) revolution turned things around on a dime. “We actually exported nitrogen last year for the first time since early 2000,” Payne noted. The situation could help stabilize fertilizer prices in the U.S. Farmers, though, must continue to figure out optimum application rates and reduce fertilizer losses to improve economics and avoid increased regulations, Payne added.
‘Opportunity ingredients’ can help lower feed costs Some bakery goods, topped with gummy bears, and served with a slice of watermelon may sound like dessert options for people. But those are actual products some livestock producers have incorporated into feed rations. Dave Wilcox of Kent Nutrition Group in Muscatine, Iowa, last week encouraged producers to continue to seek “opportunity ingredients” to replace higher-priced soybean meal and corn in livestock diets. “We’ve incorporated that type of stuff (sugar-based products, bakery waste, out-ofdate produce) into feed rations,” Wilcox said at the Illinois Livestock Symposium in Springfield hosted by the Illinois Soybean Association. “It’s surprising how much energy is in some of those products.” Various other co-products, such as corn germ meal, soy hulls, distillers grain, and corn gluten, also have been valuable additions to feed rations. Wilcox urged livestock farmers to work with their herd nutritionists before
changing feed rations, though. Those unusual feed ingredients, if not incorporated into livestock diets correctly, could affect animal performance.
‘ I t ’s s u r p r i s i n g how much energy is in some of those products.’ — Dave Wilcox Kent Nutrition Group
“It’s not a pound for pound replacement (when substituting bakery goods for corn or soy meal),” Wilcox said. “If you’re taking out soy meal, you need to incorporate the right levels of amino acids.” Nutritionists also must consider the digestible energy and energy value of opportunity ingredients, along with compatibility with other feedstuffs, before reformulating feed rations.
If different ingredients are available for feed, farmers also must consider the economics and performance of their operations. “The cost per pound of gain is the biggest measure you have,” Wilcox said. “It all comes down to feed efficiency and getting the most pounds of meat or milk from a pound of feed.” Farmers interested in opportunity ingredients should check with their nutrition providers, brokers, or contact plants directly about the availability and price of different products. Wilcox predicted the tight feed supplies and high prices will ease this year if U.S. crop production returns to normal. However, there could be more issues with corn this spring. “We aren’t out of the woods with aflatoxin until we get to the new crop,” Wilcox added. “I think we’ll see a spike this spring as we get into more humid weather.” Wilcox urged those with stored grain to regularly monitor bins and take steps, such as running fans, to prevent the spread of aflatoxin. — Daniel Grant
Page 15 Monday, February 18, 2013 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
New U.S. crops coming into focus It seems by early February, a change in a number of things becomes noticeable. First and foremost, it’s obvious how much earlier the sun comes up and how much later it goes down, even though we are only a little more than a month away from the winter solstice (Dec. 21). The same goes for the grain market. With February comes the long-term baseline projections from USDA. And on Friday, USDA will release a “best guess” at what it thinks the supply/demand balance tables might look like for the key crops. The trade talked a great deal about details of the baseline numbers released on Feb. 11, but there’s a tendency not to make too much of them. They are based on data that were available in November. More important, those projections are put together for USDA budget forecasting, and not market analysis. Hence they can give one a skewed view of the coming year. The one thing that jumped out on these baseline estimates was the 3-million-acre decline in expected plantings of the eight major crops. This comes at a time when we are going to have high insurance guarantee prices, with the exception maybe of cotton. Winter wheat guarantees were record high last fall. At this writing, we’d expect spring wheat to have a guarantee near $8.60, corn near $5.70, and soybeans close to $13. The spring wheat insur-
ance guarantee will be about 80 cents higher than last year, soybeans 40 to 50 cents higher, with corn coming in just slightly higher. Even with high input costs, those levels don’t encourage producers to leave land idle, other than maybe the most marginal of acres. Another 2.7 million acres that had been in the Conservation Reserve Program (CRP) will be available for planting this year. But given much of that is in the drier part of the country, we’d expect much of it to be used for pasture given the poor pasture conditions when winter started and the record tight hay inventories on Dec. 1. Even so, the 254.4 million acres USDA expects to be planted to the eight major crops would be the second largest since we started pulling land out of the CRP. The mix likely will be a little different, but the high insurance guarantees tend to ensure land will get planted unless spring weather precludes it. The trade will note USDA’s initial expectation for the corn yield this year. The last two to three years, the trade has been skeptical of its early yield forecast for corn, not only on these estimates, but the first “official” one USDA releases each May. But of most use is the early demand forecast for each of the crops. The models USDA uses to put together these early forecasts are better than the “seat of the pants” estimates many of us in the trade use. The demand expectations will be used as a guideline by many until the May estimates are released. They may be the most useful part of these ear-
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ü2012 crop: Even though corn prices slipped lower last week, they have approached a level that should temporarily halt the slide. Because of the depth of the break, we’ve lowered our target to make catchup sales to $7.30-$7.50 on March futures. Plan to add to sales if prices reach that range. Check the Hotline. ü2013 crop: Upside potential for rebounds has declined because of the depth of the break. Use rallies to $5.70-$5.80 for catch-up sales. We may add a sale if December hits that level. Check the Hotline. vFundamentals: Competition from other countries and other grains continues to undermine interest for U.S. corn in the world trade. Brazil has exported another 1 million metric tons (39.3 million bushels) so far in February, after exporting 3.3 million metric tons in January. The grind for ethanol continues at a subdued pace, too, although there are indications that may be stabilizing. Check the newcrop projections released this week at the USDA Annual Outlook Forum.
Soybean Strategy
ü2012 crop: Accelerating harvest activity in South America and export cancellations put the soybean market on the defensive last week. The break may be at a shortterm stopping point. Use a rally to $14.49 on March futures for catch-up sales. ü2013 crop: New-crop prices have suffered more than old-crop. November may not be able to get through $13 again soon. Use a rally to $12.90 on that contract to make catch-up sales. vFundamentals: This past week’s 109,200 metric tons of export cancellations served notice that business is shifting to South America. In total, China appears to have canceled 377,100 metric tons. That was followed by an announcement on the daily system another 250,000 tons had been canceled. Harvest weather was very good across northern Brazil producing
areas this past week. And the latest forecasts finally include potential for good rains across Argentina. In short, demand is starting to switch from the U.S. to South America.
Wheat Strategy
ü2012 crop: Wheat prices should be close to establishing a near-term low. Wait for a recovery bounce before making any needed catch-up sales. ü2013 crop: Plan to make catch-up sales with Chicago July trading above $7.60. New-crop sales stand at 35 percent complete. vFundamentals: The
recent slide in wheat can be attributed to much-needed moisture moving across the U.S. Southern Plains. In addition, the 14-day weather models are calling for above-normal chances for moisture. The most critical time for the winter wheat crop will come this spring when it breaks dormancy, but moisture now will help get growth off to a better start given dry conditions since fall. Demand for U.S. wheat has been lackluster throughout the winter months, but the most recent weekly export sales number offered some hope, coming in above trade expectations at 706,300 million metric tons.
FarmWeek Page 16 Monday, February 18, 2013
perspectives
Optimism for ag labor reform
Exploring options @ ExplorACES Prospective students glimpse college life Oftentimes in life, the best way to find out if you like something is to try it. When choosing a college, this is especially important. The University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) recognizes the importance of AMELIA offering MARTENS prospective students and their families a glimpse into the life of an ACES student. ACES students invite prospective students and their families to experience student life in the College of ACES at this year’s ExplorACES from 9 a.m. to 3 p.m. March 8 and 10 a.m. to 2 p.m. March 9. We’ve asked three ACES freshmen to share their experiences at ExplorACES. Jennifer Woodyard, Paris: “ExplorACES is an awesome opportunity for high school students who are considering attending the U of I and majoring in the College of ACES to really get a feel for what the school is like. “I had heard that ACES provides the close-knit, community-like feeling that smaller universities have while still being a Big 10 campus. ExplorACES proved to me that this was true. “I interacted with people who would be my future classmates, friends, and professors and saw firsthand what attending the U of I would be like. “I was exposed to many different opportunities that I may not have been able to find out on my own, like a winter break study-abroad experience just for ACES freshmen (I actually went on it over break). “Every single person I talked to was welcoming and helpful, and that really cemented my decision to attend U of I. “My favorite part of ExplorACES was the admitted-student reception ... All admitted students received free Illinois ACES T-shirts, which made me feel like I belonged. “We broke up into groups by majors, and I got to talk to a natural resources and environmental sciences adviser, the department head, and three
A family confers during a previous ExplorACES event at the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES), Urbana. (Photo courtesy College of ACES)
upperclassmen in my major. I met people during that meeting that I am good friends with now, and I might not have been if it weren’t for ExplorACES. “To me, that really shows all the opportunities ACES can give you; not just in academics and extracurricular activities, but in lifelong friendships and memories.” Jordan Williams, Bellwood: ”When I went to ExplorACES, I was still undecided about where I wanted to attend college. While I had some really great alternates, in the end, I chose U of I. ExplorACES played a big role in that decision. “The College of ACES alone is outstanding, but the fact that the entire event was planned and executed by ACES students was unbelievable. It brought a unique quality often missing from standard college open houses. “I honestly felt such a strong sense of unity and family within ACES after attending ExplorACES. I don’t think I will ever forget all of the students “I met who were so passionate about their majors, the College of ACES, and sharing their knowledge and experiences with prospective students like me. “Everyone was so full of energy, and I felt at home immediately. I learned a great deal about the college, my major, and I met a lot of great people.
ExplorACES was the start of the great journey that is college for me, and because of it, I knew that I was making the right choice to attend the University of Illinois and become an ACES student.” Sarah Wright, Aurora: “ExplorACES was the first thing that made me feel like I was at home at the College of ACES. It introduced me to the College of ACES family and made me feel welcome. “With all of the diverse clubs and activities represented at ExplorACES, I could see my future beaming bigger and brighter than ever before by becoming an ACES student. “For me, the highlight was seeing all of the passionate students share information about how I could become involved on campus and could make a difference.” Students and families will find free parking in lot E-14, just west of the Assembly Hall. A free shuttle service will be provided to ExplorACES events both days. For more information, go online to {exploraces.org} or connect with ExplorACES on Facebook or Twitter. Amelia Martens, Orion, is a senior in agricultural communications at the University of Illinois College of Agricultural, Consumer, and Environmental Sciences, Urbana.
Farmers and ranchers need a reliable workforce to produce food for America. And they accept that most of the workers they need come from other nations. It has been a long time coming, but U.S. lawmakers are increasingly recognizing this as well. It is important that this underKEVIN ROGERS standing guest columnist extend to the fact that agriculture cannot access a sustainable labor supply without reform of the current visa system for nonnative workers. Because the political dynamics have changed, it seems likely that immigration reform can be debated in the future in an atmosphere of lowered emotional rhetoric. This should allow for more thoughtful consideration of the positive economic benefits of ag labor reform, which are considerable. Chief among them is that rural areas thrive with a reliable workforce for agriculture. Securing a labor supply to sustain agricultural production into the future, hand-in-hand with border security and interior enforcement, has been a key focus for Farm Bureau. One reason I am optimistic about the recent change in tone is that a lot of rhetoric over the past few years focused on certain classes of people, which was just not right. That too, is changing. A few years ago when Arizona was proposing harsh antiimmigrant legislation, I often reminded neighbors, “These are our employees we are talking about.” Following passage of some of these measures in Arizona,
we saw an exodus of people, mostly families. Perhaps the employee was legally in this country, but he or she was protecting other family members. Most of these employees were long tenured and much valued. They disappeared to face an uncertain future. Leaving did not solve any problems; it just displaced them to the detriment of their family, the employer, and the community. One Farm Bureau member had a long-time manager approach him with the news that he had been living under a false name for years. He was a responsible and key employee, much involved in the local community. He and his family simply disappeared. Unfortunately, these are neither isolated nor unique circumstances. To stabilize and sustain agriculture’s workforce, we must find labor solutions for those who are already here in the U.S. and those who need to come here to work. Farm Bureau continues to work to advance realistic labor and immigration reforms supported by united agricultural groups and interests. Put simply, we need reform that works for all of agriculture. And we need it now! As negotiations proceed with Congress and interest groups, my hope is that our goals will be compatible, allowing for a resolution that works for our industry without reverting back to a non-productive tone. Kevin Rogers, a fourth-generation family farmer in the Phoenix area, is Arizona Farm Bureau president. His family farm grows cotton, alfalfa, wheat, and corn silage.