Farmweek february 23, 2015

USDA economists, speaking at an outlook forum, don’t expect a large increase in soybean acres. page 3

Monday, February 23, 2015

UNDAUNTED PRUNING

Improved river, rail and road transportation for agriculture requires public education. page 6

Proposed UAV rules take flight

Two sections Volume 43, No. 8

BY DEANA STROISCH FarmWeek

Neither cold nor snow stops Aurelio Hernandez of Murphysboro (Jackson County) from pruning grapes last week at Alto Vineyards, Alto Pass. Pruning typically occurs in January and February on 8 acres at the vineyard. Hernandez marks his 14th pruning season. (Photo by Ken Kashian)

Want to store more fuel on your farm? Check out Illinois on-farm fuel storage requirements. page 7

Agricultural groups, including the Illinois Farm Bureau, began poring over much-anticipated rules released last week governing the commercial use of small Unmanned Aerial Vehicles (UAVs).

The federal government will allow 60 days to comment on the 195-page proposal. The comment period will begin once the Federal Aviation Administration (FAA) publishes the rule in the Federal Register.

Adam Nielsen, IFB’s director of national legislation, said the proposal initially appears to fall mostly in line with IFB policy, but noted “the devil is in the details.”

He pointed out that the White House authorized each federal agency to determine how they plan to collect, use, disseminate and retain data from the use of UAVs consistent with protecting civil rights and privacy. IFB will be “monitoring that process carefully,” he said.

Nielsen said IFB plans to continue analyz-

ing the proposed rule and will submit comments to the FAA. Under the proposed rules, UAVs: • Must weigh less than 55 pounds, cannot be operated at night and must be kept in the operator’s line of sight at all times.

• Cannot be flown faster than 100 mph or higher than 500 feet above ground level.

• Cannot be flown over people, except those directly involved with the flight. They also must be kept out of airport flight paths and restricted airspace areas.

An operator, under the proposed rule, would have to be at least 17 years old, pass an aeronautical knowledge test, obtain an FAA operator certificate and be vetted by the Transportation Security Administration. An operator would have to pass a test every 24 months to maintain certification. A private pilot license or medical rating won’t be needed. The out-of-pocket certification cost could be less than $300.

IFB policy supports the use of UAVs to help make farm operations more efficient and profitable.

Governor says deep spending cuts ‘reality we face’

BY KAY SHIPMAN

Gov. Bruce Rauner proposed slashing state spending, offering “the budget Illinois can afford.”

“For far too long, we have been living beyond our means — spending money that Illinois taxpayers could not afford,” the governor told assembled lawmakers in his first budget address last week.

The state’s underfunded state employee pension system

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took center stage. Rauner proposed additional changes to the pension system — in addition to facing constitutional challenges in the Illinois Supreme Court.

Both Democrat leaders, House Speaker Michael Madigan and Senate President John Cullerton, countered the governor’s proposed budget includes $2.2 billion in anticipated pension savings. Madigan agreed with Rauner’s assessment that the General Assembly and the governor are close to an agreement to resolve the $1.6 billion deficit in the current budget.

While Rauner proposed deep spending cuts, he didn’t include new sources of revenue, stating “before revenue can be discussed, reform is essential.”

Speaker Madigan disagreed: “You can’t work your way out of budget deficits by cuts alone ... (needed is) a blend of cuts in services and new revenue. We will need additional revenue to balance the budget.”

The governor proposed increased funding for preschool

education, and elementary and secondary education. However, higher education faces budget reductions.

Republican legislative leaders Sen. Christine Radogno and Rep. Jim Durkin supported Rauner’s efforts to rein in state spending to match state revenue. “We need to change the way we do things,” Radogno said.

Illinois Farm Bureau President Richard Guebert Jr. acknowledged the state faces fiscal challenges: “We knew this was going to be a tough budget

Budget highlights

Gov. Bruce Rauner included in his budget proposal: • $1.5 billion cut in Medicaid, • $600 million cut in local government, • $387 million cut in higher education, • $300 million increase for elementary and secondary education, and • $500 million for backlog of unpaid bills.

to develop. What Gov. Rauner laid out today clearly shows that.”

He continued, “The governor and the General Assembly now have tough budget choices to make that will affect everyone.

We in agriculture are no different. We will have to step back and review the budget presented

by Gov. Rauner and determine the impact it will have on the agricultural programs that serve our community.”

“However, we realize we can wait no longer to address the financial crisis facing our state, and difficult decisions must be made so we can return Illinois to prosperity,” Guebert said.

IDOA shares budget ‘sacrifices’

Director Philip Nelson, immediate past Illinois Farm Bureau president.

The governor has proposed “a way forward we can all live with,” Nelson added.

Rauner recommended reducing IDOA’s general revenue funding (GRF) from taxes

BY KAY SHIPMAN FarmWeek

The Illinois Department of Agriculture (IDOA) shares funding cuts in Gov. Bruce Rauner’s proposed fiscal year 2016 budget. The newly confirmed Illinois agriculture director told FarmWeek it’s a shared sacrifice.

“I applaud the governor for making difficult decisions and guiding us on a path forward.

Everybody is going to have some sacrifice if they want to turn the state around,” said IDOA

Philip Nelson

See IDOA, page 2

www.facebook.com/illfarmbureau

Quick Takes

FarmWeek • Page 2 • Monday, February 23, 2015

NELSON CONFIRMED IDOA DIRECTOR — The Illinois Senate confirmed Philip Nelson, former Illinois Farm Bureau president, as Illinois Department of Agriculture director last week.

Others confirmed included Wayne Rosenthal, former state Republican representative from Morrisonville, as Illinois Department of Natural Resources director. Leo Schmitz, a Chicago police administrator, takes the reins of the Illinois State Police.

Senators confirmed John Maki of Chicago as executive director of the Illinois Criminal Justice Information Authority. He served as head of the John Howard Association, a prison watchdog group.

PRODUCT EXPO TO PROMOTE STATE — The 17th Illinois Products Expo offers all things Illinois March 7-8 in the Orr Building on the Illinois State Fairgrounds, Springfield. Hours of operation are 10 a.m. to 5 p.m. Saturday and 10 a.m. to 3 p.m. Sunday.

More than 70 companies will provide free food samples and sell their products.

A few nonfood products, such as soy and herb candles, and ag-based soaps and lotions, will be available. Illinois wineries will sell wine samples as well as wine by the bottle or glass in an Illinois Wine Garden.

Admission prices are $5 per person with children 10 and younger admitted free.

BEEF ASSOCIATION SCHOLARSHIPS OFFERED — High school seniors and college students can apply until March 1 for scholarships offered by the Illinois Beef Association.

A $3,000 scholarship will be provided in memory of past association executive vice president Maralee Johnson. Four, $1,000 scholarships will be awarded to two high school seniors and two current college students.

Check out scholarship details at {illinoisbeef.com}.

Applications should be submitted to Jill Johnson at jill@illinois beef.com.

CATTLE ON FEED NUMBERS INCREASE SLIGHTLY — The number of cattle on feed increased 1 percent from a year ago to 10.7 million head as of Feb. 1, USDA reported last week. The numbers come from feedlots with capacity of 1,000 or more head.

However, placements in feedlots during January totaled 1.79 million, 11 percent below last year. In terms of weight breakdown, placements of cattle and calves weighing less than 600 pounds totaled 405,000; 600 to 699 pounds, 340,000; 700 to 799 pounds, 477,000; and 800 pounds and greater, 565,000.

Marketed fed cattle during January totaled 1.63 million, 9 percent below 2014, and the lowest since 1996.

(ISSN0197-6680) Vol. 43 No. 8 February 23, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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.

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Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office.

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

Q&A:

Illinois House Agriculture and Conservation Committee chair

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

Rep. Jerry Costello II: Since farmland covers a large part of Illinois ranging from the Chicagoland suburbs to the Quad Cities to Metro East and down to Cairo, there will be many issues that the committee will encounter. As such, I hope to set a bipartisan tone of cooperation in recognizing and dealing with issues that affect so many different people. I aim to keep the committee’s focus on the issues that matter in the everyday lives of Illinois farmers so that we are working as a committee toward real solutions for farmers, sportsmen and conservationists.

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

Costello: I have been a member of the Agriculture and Conservation Committee every session that I have been in the General Assembly. Last session, I served as vice-chairman of the committee. As such, I have witnessed a number of varied agriculture and conservation issues that have come through the committee.

I have also learned of issues beyond the committee by maintaining a close relationship with county Farm Bureaus and the farmers they represent. Additionally, as an avid outdoorsman myself, I have firsthand knowledge of many issues facing hunters, trappers and other outdoorsmen. I look forward to expanding that knowledge as we work on passing important legislation.

FarmWeek: What are some issues that may come before your committee?

Costello: The Agriculture and Conservation Committee

covers a wide variety of topics, which means that each session brings varied issues the committee must address. Ethanol remains a key issue for Illinois farmers, and I have no doubt that there will be a number of bills addressing different aspects of ethanol production, supply and usage.

Infrastructure is another, broader issue with many aspects that I expect will merit legislation, especially as we focus on the impact infrastructure has on a farmer’s ability to transport goods and equipment.

Finally, protecting Illinois’s vast wildlife habitat and natural resources for generations to come will remain an important aspect of the committee’s work.

FarmWeek: What issues that may impact agriculture do you anticipate this session?

Costello: As with every committee, we must recognize budget constraints placed on the state and how that may affect the legislation we’re able to pass. Budget cuts throughout the state could have wideranging effects that farmers may not be able to anticipate.

Ensuring funding for such an important industry as agriculture, agriculture education and the support services that farm-

Continued from page 1 by $4.4 million, according to Kristi Jones, IDOA communications manager.

“We’re very lean as it relates to GRF” and have had to rely a lot on fees in such programs as meat inspections, grain warehouse oversight, and weights and measures functions, Nelson noted.

Overall, IDOA is poised to gain employees for a goal of 393, including 16 earmarked for a new medicinal marijuana pro-

gram, primarily for inspection of cultivation facilities. Currently, IDOA employs roughly 375 people.

Rauner proposed $2.6 million to fund IDOA oversight of the state’s new medical marijuana program.

While funding for most IDOA programs remained steady or took slight reductions, the governor proposed eliminating $2.797 million from racing purse subsidies for standardbred and thoroughbred

IDOA

ers rely on must be one of the key things that we work toward. As a committee, we need to make sure funding is not cut for these programs.

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

Costello: Agriculture is occasionally sidelined by some of my colleagues in the General Assembly, who I think have a tendency to forget how important agriculture and farming is to this state. We must work together to continually shine light on agricultural issues that affect not just downstate farmers but all Illinoisans.

To that end, please feel free to reach out to me or to your representative to bring to our attention pressing issues that arise as we start another agricultural cycle, so that we can help ease the burden on farmers and keep Illinois farms strong and prosperous.

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

Get to know Jerry Costello II Job: Democrat representative serving the 116th district Age: 46 Years served: July 2011 to the present Background: Lives in Smithton, former patrolman and assistant chief of police, paratrooper with the Army’s 82nd Airborne Division during Operation Desert Storm, and graduate of Southern Illinois University-Carbondale

Jerry Costello II

Farm roots: As a youngster, spent time caring for horses, cows, hogs, goats, chickens and ducks. Currently owns two horses, two donkeys and 23 head of Belted Galloway cattle. Loves to hunt and fish.

racing and $2.688 million from University of Illinois Extension and Cook County Extension included in IDOA’s budget.

“It’s tough any time you take a cut,” Nelson said, adding he had already spoken with Extension representatives and anticipated hearing from horse racing supporters.

“The department plans to keep an open dialogue with the impacted groups and keep them informed throughout the budget process,” Jones said.

USDA OUTLOOK FORUM of biotech crops USDA projects decline in crop acres and farm income for 2015

Page 3 • Monday, February 23, 2015 • FarmWeek

EU ag leader sees value

BY DANIEL GRANT FarmWeek

The European Union’s longstanding concerns about biotechnology could ease as it seeks ways to secure adequate food/feed supplies and deepen its relationship with the U.S. Phil Hogan, European Commissioner of Agriculture and Rural Development, said last week at the USDA Ag Outlook Forum in Arlington that he believes science validates the use of biotech for crop enhancement.

“We need technology to feed the world,” Hogan said. “We have to look at all options” to sustainably boost global food production.

The EU currently seeks to clarify its position on genetically modified (GM) crops. It gave more authority to member states on the biotech issue in recent years and some countries wasted little time responding to increased flexibility.

Spain and Romania, for example, adopted some of the new crop technology.

“We’ve made progress.

Countries have more flexibility with cultivating technologies,” Hogan said. “It will be interesting to see how other (EU member) states respond. I’d say more countries will be interested.”

However, the EU’s approval process of new biotech products remains frustratingly slow for its American counterparts.

The American Soybean Association (ASA) recently urged the EU to consider draft import authorizations for 13 new biotech products, including corn, soybeans, canola and cotton, which are pending.

“All of these products have received positive European Food Safety Authority scientific assessments and have been considered by the Standing Committee on the Food Chain and Animal Health and the Appeals Committee,” ASA noted in a letter to an EU official.

Delayed action on the authorization of the products could disrupt the essential supply of feedstocks needed by the EU’s livestock and feed industries, which are more than 70 percent dependent on imported protein, according to ASA. Hogan acknowledged the need to keep adequate feed

BY DANIEL GRANT FarmWeek

Ag Secretary Tom Vilsack, left, talks with Phil Hogan, European Commissioner of Agriculture and Rural Development, during the 91st USDA Ag Outlook Forum in Arlington. The two discussed a free trade agreement, biotechnology and how to minimize food waste, among other issues, at the event. (Photo by Daniel Grant)

supplies flowing into the EU. “We have a vested interest,” he said. “Otherwise, without soy imports, our feed costs could go substantially higher. But this is a big political challenge, even though science gives validation to these practices.”

Vilsack also pushed for a more efficient regulatory process of GM crops in the EU. “It’s important and vital we continue our pace of innovation,” Vilsack said.

“A lot (of GM crop benefits) has to do with better seed and the capacity to deal with adverse weather conditions.”

Rob Fraley, executive vice president and chief technology officer for Monsanto, noted GM crops have been used 20 years and currently are grown in 30 countries on about 25 percent of the world’s farmland.

“With incredible innovations coming in ag, I think we can create the next green revolution,” Fraley said. “A real key (to meet future demand growth for food) is to take land and sustainably intensify yields and production.”

Farmers who use GM crops can reduce pesticide use and lower the amount of escaped carbon via fewer trips through fields.

“There’s a lot in it for consumers,” Fraley noted.

Hogan praised GM labeling laws as a way to harmonize rules and ensure transparency, while Vilsack remains leery of labeling food containing biotech crops as he believes it could convey misconceptions about the safety of the technology.

“There is no indication of a food safety hazard associated with GM crops,” Vilsack added.

The significant decline in corn and soybean prices driven by back-to-back record crops could take a bite out of planted acreage this spring.

USDA projects the planted area for the eight major crops nationwide (including corn, soybeans and wheat) could slip 3.3 million acres, compared to last year, to 254.6 million acres.

Overall, corn and soybean plantings this spring could total 172.5 million acres, down 1.8 million from a year ago.

“With historically high prices (the previous five years), we expanded production of many crops around the world,” Robert Johansson, USDA acting chief economist, said last week at USDA’s 91st Ag Outlook Forum in Arlington.

“But with lower expected prices (and higher stocks), the planted area is expected to decline modestly (in 2015).”

The main surprise came in the soybean complex where USDA projects acreage to slip from Robert Johansson 83.7 million acres last year to 83.5 million acres this year. Many analysts previously predicted a run-up in soybean acres due to favorable economics, which have since flattened out in recent months.

Meanwhile, USDA projects the largest decline in acres to occur in corn production as farmers are expected to plant 89 million acres, down 1.6 million acres from last year.

“Changes in the expected harvest-time prices in the coming weeks will determine the final area mix between corn and soybeans,” Johansson said.

USDA expects wheat acres this year could slip by 1.3 million FarmWeekNow.com acres.

Visit FarmWeekNow.com to listen Johansson pointed to “falling to Dan Grant’s interview with USDA Acting Chief Economist crop prices” and “narrowing Robert Johansson. production margins” as the key drivers of the reduction in crop acres.

Average prices are projected to decrease between 2014-15 to 2015-16 from $3.65 to $3.50 per bushel for corn and from $10.20 to $9 per bushel for soybeans. Wheat prices in 2015-16 could fall 15 percent from the current year.

Farm income subsequently could plunge 32 percent this year to its lowest level since 2007. USDA projects farm income this year could total $73.6 billion compared to $108 billion last year.

The drop in farm income could place downward pressure on farmland values. But USDA does not foresee a crash in the market.

“Land values are expected to decline modestly in 2015 by 1 percent,” Johansson said. “Although some regions may still see additional increases, some regions may experience larger declines.”

Fortunately, Johansson believes farmers are in better position to handle tighter margins now than in the past.

USDA anticipates the debt-to-asset ratio could post a small increase to 10.9 percent. If realized, it still would be the third-lowest level since USDA began calculating the ratio in 1960.

“The financial health of the agricultural sector is strong as we enter this period of lower crop prices,” Johansson said.

Agriculture leaders view food waste as a major issue

BY DANIEL GRANT FarmWeek

Solving the issue of global food security involves more than boosting food production.

A key to tackling the challenge also revolves around reducing food waste, according to Ag Secretary Tom Vilsack and Phil Hogan, European Commissioner of Agriculture and Rural Development.

“I see (food waste) as a huge issue,” Hogan said last week at the USDA Ag Outlook Forum in Arlington. “We need to think outside the box to use the food we have.”

About 22 percent of food in the EU never makes it to the dinner table, but

instead, winds up as waste, according to Hogan.

“That’s a huge amount of food (not consumed),” he noted.

In the U.S., a whopping 133 billion pounds of food goes to waste each year.

The wasted food not only contributes to food insecurity, but also creates environmental issues as it produces a large amount of methane in landfills around the country, Vilsack noted.

“It’s an issue that has ramifications in multiple ways,” he said.

Vilsack believes a 3R approach — reduce, reuse and recycle — could lower the amount of food that spoils and turns to waste each year.

Americans should reuse food that

remains edible by donating it to food banks and other points of distribution.

An increase in the charitable tax deduction could prompt more companies to donate rather than toss food.

Meanwhile, food waste can be reduced by encouraging a better understanding among consumers of “best by” dates and if food retailers consider reducing portion sizes, according to Vilsack.

Elsewhere, food waste could be reduced in places such as Africa by improving storage facilities.

“About 50 percent of food in those (African) countries never gets to the market because it spoils” due to a lack of proper storage facilities, Vilsack said.

FTAs could be boon to farm sector; TPP agreement close FarmWeek • Page 4 • Monday, February 23, 2015

BY DANIEL GRANT FarmWeek

Two key free trade agreements (FTAs) could put U.S. agriculture on the road to greater prosperity if the mutually beneficial deals come to fruition.

Ambassador Darci Vetter, chief ag negotiator for the Office of the U.S. Trade Representative, and Jason Hafemeister, chief trade negotiator/policy Darci Vetter coordinator for USDA’s Foreign Ag Service, last week said a deal on the Trans-Pacific Partnership (TPP) could be finalized in coming months.

TPP, along with negotiations on the Trans-Atlantic

Trade and Investment Partnership (TTIP) free trade agreement with the European Union, represent the most aggressive agreements undertaken by the U.S. in decades, according to Vetter.

“Between TPP and TTIP, we have two-thirds of the global economy on the (negotiating) table right now,” Vetter said last week at the 91st USDA Ag Outlook Forum.

“We’ve made very significant progress through intensive negotiations with TPP partners,” Vetter said. “We’re in the end game. Our goal is to conclude a deal as soon as possible.”

TPP represents a major free trade agreement with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam that would lower tariffs and reduce other trade barriers.

But Japan delayed the deal as it requested special exemptions for certain commodities. Vetter believes those obstacles were all but eliminated in recent negotiations.

“We need to make sure we don’t lose market share (in TPP countries),” Vetter said. “U.S. exports could grow $123.5 billion per year (via TPP).”

Japan recently finalized an FTA with Australia, a key competitor of the U.S. in that market. Japan currently can charge tariffs up to 50 percent for U.S. beef, while tariffs for Australian beef are slated to drop to just 20 percent, according to Hafemeister.

“If we don’t engage those (TPP) countries, and we continue to stand still, others will go forward,” he said. “We’re continuing to lose market share.”

The U.S. currently maintains

imaginary blend wall and get the renewable fuels renaissance moving again,” Dinneen said in his speech. “As it is, every day the agency allows the RFS to drift in a sea of uncertainty is a day the agency is in violation of the law.”

The EPA announced in November it would not finalize a proposed rule that mandated how much ethanol and biodiesel must be in the nation’s fuel supply until sometime this year. The RFS issue remains a top priority for RFA and Illinois Farm Bureau.

Among other items on its lengthy to-do list, the association will continue efforts to build markets for higher ethanol blends and promote E15 infrastructure at the pump.

It plans to inform importers and challenge trade barriers to expand demand for ethanol in export markets.

Meanwhile, the ethanol

industry logged its single most profitable year in 2014, Dinneen said. The industry generated an impressive $1.83 in energy and animal feed for every $1 spent on feedstock.

Dinneen’s address noted the ethanol industry’s maturity, growth and evolution. Ethanol companies succeeded despite the EPA’s proposed reduction of the 2014 renewable volume obligations by 1.4 billion gallons. The industry increased exports to strengthen its position as the world’s top supplier.

And cellulosic ethanol commercialized to represent a new era of ethanol production technology, he continued.

“The state of the ethanol industry is strong,” he said.

“The market today may be challenging, but we have weathered worse than this.

Critics may be legion, but we know the facts support us and we will prevail.”

17 FTAs with other countries.

But there are more than 250 FTAs worldwide, including 35 involving the EU, according to Hafemeister.

“U.S. tariffs are much lower than our trading partners,” he said. “We have little to lose in trade negotiations.”

The U.S. has been stuck in a trade deficit with the EU for about 15 years. Meanwhile, the EU charges an average tariff Jason of 30 percent Hafemeister for imported goods compared to just 12 percent in the U.S., Vetter noted.

“Trade negotiations are an opportunity to bring tariffs down,” Hafemeister said.

Another benefit to new

Industry strong, RFS action tops efforts

BY JOANIE STIERS FarmWeek

The Renewable Fuels Association encourages the Environmental Protection Agency (EPA) to quickly re-establish momentum of the Renewable Fuels Standard (RFS). Such action would topple the blend wall and spark investment in new biofuels technologies as the standard intended, said Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA).

Dinneen announced an aggressive 10-point plan last week to assure ethanol’s growth and evolution. Putting RFS back on track topped RFA’s list presented at the National Ethanol Conference in Grapevine, Texas.

“If the agency is able to promulgate a rule for 2016 soon, it will have an opportunity to send a signal that it will not be held hostage by an

Start Planning Now

FTAs revolves around the establishment of common regulatory approaches.

TTIP negotiations aren’t as far along as TPP and could take months or even years to finalize, according to Hafemeister.

A key to finalizing both deals involves passage in the U.S. of Trade Promotion Authority (TPA), according to Vetter.

TPA allows Congress to provide direction on trade policy priorities and negotiating objectives.

It also defines terms and conditions under which Congress considers to implement the agreements.

“TPA is not a delegation of authority to the executive branch like some think,” Vetter added. “We need that as a tool in hand to complete the (TPP) deal.”

Farm bill: Your questions answered

Time’s running out. Landowners have until Friday to decide whether to reallocate base acreage or update payment yields.

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

In addition to speaking at informational meetings across the state, Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, answers FarmWeek reader questions each week about the decisions farmers face. This week’s question: Q: Could the choices I make in any way influence the crop prices that the operator of my farm will get from his harvest?

A: No. Where farmers or landowners sell their grain and at what price is not influenced whatsoever by their farm bill decisions.

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

Attend a meeting at your convenience ...

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

Market access key to boost U.S. ag exports

Page 5 • Monday, February 23, 2015 • FarmWeek

BY DANIEL GRANT FarmWeek

A large supply of U.S. grain and co-products, combined with lower prices compared to recent years, could entice more international sales.

But as always, market access will play an important role in the success of U.S. exports in this and coming years.

Ron Gray, a farmer from Claremont (Richland County) and chairman of the U.S. Ron Gray Grains Council (USGC), recently discussed export challenges and oppor-

tunities. Earlier this month, he attended USGC’s 12th international marketing conference and 55th annual membership meeting in Heredia, Costa Rica.

“At that meeting, we heard from our (USGC) country directors from all over the world,” he said. “It was a real opportunity to hear firsthand from people on the ground (in various markets).”

Gray, based on that feedback, looks for demand for ag products to remain strong in Asia and Central America, among other locations.

“Two years ago, (customers) pretty much were on a hand-to-mouth basis (due to tight supplies and high prices of corn),” he said. “Now, with

lower prices (and bountiful supplies), and profits are there in livestock, we think we’ll see some expansion.”

China recently approved products with the Agrisure Viptera trait, which could end disruptions of U.S. corn and dried distillers’ grains (DDGS) shipments.

“That disruption seems to be mediated going forward,” Gray said.

U.S. exports of DDGS could increase as a result.

DDGS exports, prior to last year’s shipment disruptions in China, exploded from 1 million tons in 2006 to 9 million tons in 2013. China imports roughly one-third of U.S. shipments of DDGS. It, therefore, will be critical

to improve infrastructure, such as locks and dams on the Illinois and Mississippi Rivers, to meet demand and boost sales of U.S. ag products.

“We have concerns about infrastructure and its impact on the effectiveness of moving grain,” Gray said.

A labor dispute at West Coast ports in recent months slowed shipments and created a backlog of products.

The West Coast ports handle about half of U.S. maritime trade.

The Obama Administration last week worked with the industry in an attempt to broker a new contract between dockworkers, shippers and terminal operators.

Meanwhile, Gray believes

many countries around the world could be primed to boost imports of U.S. ethanol.

USGC added ethanol to products it promotes on the world market last year.

“When you look around the world there’s many places with air quality issues,” Gray said.

“Ethanol (a cleaner burning alternative fuel) at this time is very competitive as a fuel source.

“We conducted missions to countries (last year) to see where there’s opportunities to send ethanol,” he continued.

“This year, we’ll be ramping that up. It’s an exciting program going forward.”

The U.S. last year exported 836 million gallons of ethanol, up 35 percent from 2013.

1.425 billion, an evolving diet and the country’s economic growth, she said. China’s economic growth calculates to between 7 and 8 percent — respectable, though slower than the double-digit increases the country had experienced.

“Revving up or on idle? It’s neither,” Ellinger said in the context of China’s social and financial status. “They are going into a turn pretty quickly, and we don’t know how they are going to come out of that turn.”

China’s skyrocketing home values over 10 years have declined, Ellinger reported. A massive rural to urban transition in the country generates economic and social issues, too. He predicts the Chinese economy may slide or skid at some point, but the Communist nation can adapt its “car” a lot faster than the United States.

“In a financial crisis, they can respond much faster than many other countries because of the way their government and policy works,” Ellinger said.

Agriculture stands poised to drive past this potential economic skid, Nelsen said.

In fact, Chinese officials announced a new approach to food security in 2014. The plan acknowledges self-sufficiency through appropriate imports, including corn. In December, U.S. Secretary of Agriculture Tom Vilsack referenced the importance of bilateral trade cooperation with China, a particularly on biotech products, Nelsen said.

“I think it’s going to be a fun ride with China,” she said.

stated, according to a University of Illinois study.

Todd Kuethe, U of I assistant professor of land economics, said the average age of Illinois’ farm operators has increased steadily over time. In 2012, the mean age of Illinois principal farm operators was 57.8 years compared to 53.2 in 1997.

According the Census of Agriculture, Illinois was home to 75,087 farms in 2012. Farmers age 65 or older operate 31.6 percent of those farms.

This statistic can be alarming because these farmers are

retirement.

However, across the entire age distribution, roughly half of Illinois principal farm operators list their main occupation as something other than farming. At both ends of the age distribution, 57.9 percent of farmers under age 25 and 57.5 percent of farmers age 65 and older list their primary occupation as farming.

In other words, Illinois’ oldest and youngest farmers more likely draw their livelihood from the farm operation, yet 43.4 percent of farm operators over age 65 still list some other

Kuethe noted distribution of farms alone can sometimes provide an inaccurate representation of the population of Illinois farms. While 31.6 percent of Illinois’ farms have a principal operator age 65 or older, this age group represents a relatively smaller share of total farm acreage — 24.6 percent — and farm income — 21.5 percent.

Farmers aged 35 to 54 represent a similar share of farm numbers at 32.7 percent, but account for 37 percent of acreage and 38.6 percent of income.

Ag imports part of China’s U of I study looks at farm operator ages beyond what was once consid- profession as their main occuIllinois’ supposed “aging food security formula pation. farmer problem” may be over- ered the traditional age of

BY JOANIE STIERS FarmWeek

While China’s economic growth decelerates, the nation’s commitment to agricultural imports stays on track as a food security priority, experts shared last week.

Paul Ellinger, head of the Department of Agricultural and Consumer Economics at the University of Illinois, and Tamara Nelsen, Illinois Farm Bureau senior director of commodities, Paul Ellinger tag teamed the presentation, “China: Revving Up or on Idle?” The title played on “Life in the Fast Lane,” the theme of the Grain & Feed Association of Illinois’ 2015 Annual Convention and Trade Show last week in Springfield.

From an agricultural standpoint, China places domestic emphasis on high-value agricultural production, such as horticulture and seafood, Nelsen said.

Meanwhile, Tamara Nelsen the country has indicated no intention to compete with the United States on grain production, she added. The nation also has shifted from small livestock farms to commercial operations.

“The result for all of us is there is going to be greater consumption of meat, milk, egg, dairy products and feed grains,” Nelsen said.

Fundamental drivers behind China’s agricultural imports include its large population of

Joanie Stiers, a central Illinois farm writer, has temporarily joined FarmWeek to cover federal policy issues and contribute to FarmWeek Now.com.

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Education necessary to fix infrastructure long term FarmWeek • Page 6 • Monday, February 23, 2015

BY JOANIE STIERS FarmWeek

Education could trigger infrastructure improvements and the public’s willingness to pay for them, an industry expert believes.

Ben Brockschmidt, executive director of the Infrastructure Council for the Illinois Chamber of Commerce, encouraged feed and grain industry proBen Brockschmidt fessionals to educate themselves, worry less about immediate costs and help the public to “love transportation investment.” He led an educational session at the Grain & Feed Association of Illinois’ Annual Convention and Trade Show last week in Springfield.

“People do worry a lot about transportation investment,” Brockschmidt said. “You’ll hear talk of a tax increase, or any other funding options I talked

about, and the immediate reaction is, ‘My cost of getting around day to day goes up.’

“This is a long-term problem,” he said. “There is no immediate, quick solution. If we don’t make the investment today, we’re going to suffer the consequences tomorrow.”

During his presentation, Brockschmidt touted Illinois’ prime location in the nation’s river, rail and road network and its ability to reach export markets. He referenced the future of containerization and the potential for larger shipments with the Panama Canal Expansion Project. Statistics also indicate growing demand on the state’s infrastructure.

About 430 million more tons of goods will move annually through Illinois between 2010 and 2040, Brockschmidt reported. This increased demand on all modes of transportation will translate to jobs, he said. Yet, another challenge slowly emerges to find enough workers interested in the transportation sector.

“We need people to fill spots,” he said. “We are not at the point to hit the panic button just yet, but we are getting closer.”

Meanwhile, infrastructure lacks appropriate funding and financing. Even the federal gas tax remains at 1992 levels, he said.

Brockschmidt recommends people tell legislators about their local infrastructure needs, while at the same time express the will to pay for it. He encouraged attendees to share the message with friends, neighbors and colleagues, too.

“This is one of those issues that comes down to education.

You have to think long term,” Brockschmidt said. “Legislators need to know they have the support of their constituents.

They have to know that their constituents care about this issue, and that addressing this issue helps them grow their business and get their products to market, and overall, contributes to the state’s economy.”

Be aware of possible herbicide residual with cover crops Many factors influence successful establishment of cover crops, but the residual effect of corn herbicides lacks extensive study in Illinois.

“Herbicide labels are not going to talk about cover crops — you’re on your own ... if you’re talking about carry-over,” Gordon Roskamp, an adjunct professor at Illinois Central College (ICC), told farmers.

Recently, Roskamp studied the residual impact of corn herbicides on several cover crop plots on the ICC farm.

The cover crops studied included annual ryegrass, cereal rye, turnips, tillage radish, crimson clover and rape.

Roskamp applied recommended, and in some cases double recommended, rates of various herbicides on May 8 and May 30.

“We don’t have data on herbicide and cover crop interaction, but we are doing research,” Roskamp told farmers.

Roskamp advised farmers to review information on herbicide persistence and cover crop rotation from Bill Curran, a Penn State University Extension weed scientist.

Curran offers half-life data for different herbicides, whether or not it would be OK to plant fall cover crops, and any concerns.

“Environment is so important (for establishing) cover crops, and half-life varies tremendously with environment,” Roskamp noted.

Out of all the different products and cover crops, Roskamp reported significant injury occurred in tillage radishes and turnips where Python was applied.

“We had a good growing season, and these were the only injuries,” he said.

Distillers dried grains with solubles (DDGS), a co-product of the ethanol industry, can be high in sulfur when it comes to feeding pigs.

Limited data exists regarding the amount of sulfur that pigs can tolerate in their diet. So, University of Illinois researchers conducted a study.

They found pigs who ate DDGS did not have elevated concentrations of sulfur in their organs compared with pigs fed a control diet.

Instead, Hans H. Stein, U of I animal sciences professor, said excess sulfur was excreted in the urine. Thus, excess dietary sulfur does not accumulate in tissues from pigs, as is the case for some other minerals. Pigs appear to be able to regulate sulfur in the body by increasing or reducing urinary excretion in response to changes in sulfur intake.

“The sulfur content of DDGS can range from approximately .3 to .9 percent,” explained Stein. “In a previous study, we determined that you can feed diets containing up to

.38 percent sulfur without affecting palatability or pig growth performance.”

Stein’s team used a source of DDGS that contained .3 percent sulfur at an inclusion rate of 30 percent. The other diet had calcium sulfate added to simulate the use of .9 percent sulfur DDGS. Carcass length, 10th-rib fat depth, loin area and fat-free lean proved the same among pigs fed the control, low-sulfur and high-sulfur diets when adjusted for hot carcass weight.

Stein said the research results should give producers more confidence about incorporating DDGS into swine diets.

“What these results tell us is that even DDGS with a high sulfur content can be fed at up to a 30 percent inclusion rate without negative effects because pigs have the ability to regulate sulfur retention and excretion,” he said.

The National Pork Board and the Nutritional Efficiency Consortium of Des Moines, Iowa, provided funding for the study.

BY KAY SHIPMAN FarmWeek

Pigs handle high-sulfur diets

Two on-the-road seminars added

Farm Bureau members have two added on-the-road seminars to attend. In addition to 10 previously announced seminars, Clark and Jasper County members can attend March 12 seminars to discuss farm exemptions from Federal Motor Carriers Safety regulations and other motor vehicle rules.

Kevin Rund, Illinois Farm Bureau senior director of local government, will lead the sessions. In addition to new covered farm vehicle exemptions, he will discuss U.S. Department of Transportation numbers, weight limits, drug and alcohol screening and commercial driver’s licenses.

The two added meetings will be at 9 a.m. March 12 at the Clark County Farm Bureau building in Martinsville, while the second meeting will begin at 1:30 p.m. in the Jasper County Farm Bureau building, Newton. Call county Farm Bureau offices to reserve a spot.

Farmers take note of on-farm fuel storage rules

Page 7 • Monday, February 23, 2015 • FarmWeek

Illinois limits on-farm fuel storage to tank size based on environmental reasons, said Lauren Lurkins, Illinois Farm Bureau director of natural and environmental resources.

The Office of the State Fire Marshal oversees regulations that apply to aboveground storage tanks used for dispensing fuels, while different programs apply to underground tanks.

The rules for ag, on-farm storage include the following requirements: • A top-fill opening shall be provided and shall be equipped with a closure designed to be locked; • A vent shall be provided to relieve vacuum or pressure that develops in normal operation or fire exposure.

The vent must have a mini-

mum unobstructed opening of 1.5 inches in diameter; • Tanks equipped with a permanently connected

pumping device need to be equipped with a padlock to prevent tampering; an effective anti-siphoning device shall be included in the pump

ATV tips highlighted during ag safety week

With spring planting rapidly approaching, consider kicking the tires on your all-terrain vehicle (ATV) to make sure it’s ready to roll. March 1-7 marks Agricultural Safety Awareness Week with the theme, “Ride Like a Pro Whenever You Go.” During the week and throughout the year, Farm Bureau encourages farmers to emphasize ATV safety. Farmers, as well as their family members and employees, should make it a habit to always wear a helmet when operating an ATV. ATVs are often at fault in deaths and injuries to children.

About 29,000 children under the age of 16 get treated in emergency rooms for ATV-related injuries each year, according to the Consumer Product Safety Commission (CPSC).

Ensure ATV safety with these tips: • Always wear a U.S. Department of Transportation-approved helmet with face protection and protective gear. Helmets decrease the fatality risk by 50 percent and the chance of a nonfatal head injury by 80 percent, according to a CPSC study.

• Select the right size ATV. Ninety-five percent of child deaths occurred when children rode an adult-sized ATV too large for them to handle.

• Never carry multiple riders. Seventy-five percent of ATVrelated deaths for children under 6 involved multiple riders on a single ATV. • Keep ATVs for off-road use only. More than 60 percent of ATV-related youth deaths occurred while children or teens were riding on paved roads.

• Inspect your ATV before each ride. Check tires and wheels as well as controls and cables. Lubricate the chain and make sure it has proper slack.

To test your family’s knowledge of ATV safety, consider playing some educational games at {atv-youth.org}.

Other resources are available on the American Farm Bureau Federation’s Health and Safety page at {fb.org}.

discharge; and siphons or internal pressure discharge devices are prohibited; • Tanks elevated for gravity discharge may be designed with an opening in the bottom or end of the tank for gravity dispensing of flammable or combustible liquids and shall be mounted and have: • Steel supports to elevate the tank designed to provide stability; • Gravity discharge openings need to have an internal safety valve, which will close automatically in cases of fire through the operation of a heat-actuated releasing device. The valve also needs to allow manual operation. If the valve cannot be operated manually, it needs to be supplemented by a second, manually operable valve. The gravity discharge outlet needs to have an approved hose equipped with a self-closing nozzle at the discharge end and be of a type that can be padlocked to its hanger to prevent tampering; • When not being used to dispense fuel, nozzles need to be hung off of the ground on a hanger and padlocked in

to prevent tampering; • Tanks for storing flammable or combustible liquids need to be marked with product name and the words, “FLAMMABLE — KEEP FIRE AND FLAME AWAY,” in letters at least 4 inches high and a contrasting color from the tank; • Storage facilities are allowed a maximum of four aboveground tanks per facility of up to 2,500 gallons each for storage of flammable or combustible liquids, provided the total of any single type of fuel does not exceed 5,000 gallons — and the liquid is stored outside buildings in a steel, vapor-tight tank.

Tanks installed or replaced after Jan. 1, 1998, need to meet location regulations.

In addition, U.S. Environmental Protection Agency (EPA) rules implements related to Spill Prevention Control and Countermeasure Plans (SPCC plans) that are required if you store oil/fuel in a certain capacity and, if discharged, it could reach waters of the U.S. These rules apply to farms; however, changes in the Water Resources Reform and

Development Act (WRRDA) increased the fuel storage capacity threshold so many farms would be exempt.

Those SPCC rules include: • A professional engineer must certify a SPCC plan for a farm with an individual tank with an aboveground storage capacity greater than 10,000 gallons (previously 5,000); an aggregate aboveground storage capacity greater than or equal to 20,000 gallons (previously 10,000); or a reportable oil discharge history; • EPA and USDA must determine the specific exemption amounts under which a farmer can self-certify his plans or be completely exempt from compliance within a year. The exemption would be no less than 2,500 gallons and no more than 6,000 gallons. Previously, only farms with capacity of less than 1,320 gallons were exempt.

• Farmers must include any tank above 1,000 gallons when determining total aggregated aboveground fuel storage capacity. Previously, the requirement was 50 gallons.

German farmers face EU and national soil nutrient rules

FarmWeek • Page 8 • Monday, February 23, 2015

BY KAY SHIPMAN FarmWeek

Some Illinois farmers and ag researchers took a crash course last week on the environmental restrictions German farmers face to grow crops.

Illinois Farm Bureau hosted a soil health and nutrient management roundtable discussion among farmers and researchers at the IFB office, Bloomington.

Christian Ahl, Christian Ahl Ph.D., a soil science professor at GeorgAugust University of Gottingen, outlined the regulatory impact on German farmers’ daily work.

“Soil health and nutrient management is important to farmers in both our countries,” said Corinna Jess, a market program manager with the German American Chamber of Commerce, based in Chicago.

Illinois farmers and IFB leaders are learning about German agricultural and environmental issues for a 2015 IFB study trip to Germany in August. Trip participants will focus on soil health, nutrient management and trade, according to Tamara Nelsen,

IFB senior director of commodities.

German farmers face environmental restrictions implemented by the European Union (EU) as well as national regulations enforced by the German government.

German farmers must calculate allowable nitrogen rates for their crops, maintain crop and nutrient records, and account for nutrients from manure applications and cover crops, Ahl explained.

Farmers must keep records on many crop and soil nutrient factors, according to Ahl. “Inspectors come from the authority and have the right to look at farmers’ (crop nutrient) Astrid Jakobs de Padua, left, the food and agriculture minister with the German embassy in Washington, records,” Ahl said. Farmers D.C., chats with Illinois Farm Bureau Young Leader Chairman Matt Rush, center, and IFB Director Dennis whose field nutrient levels Hughes last week in Bloomington. Several German scientists and government officials joined Illinois farmers exceed allowable levels face and researchers for a soil health and nutrient management roundtable discussion. (Photo by Kay Shipman) reduced per-acre farm program payments from the state, he not- also the arable soil,” Ahl said. percent clay must have more according to Ahl. ed.

German farmers also face soil than 1 percent organic matter, “We have to balance the crop According to Ahl, German organic matter thresholds or while soil with more than 13 rotation year to year so either we soil nitrogen levels may not possible farm program payment percent clay must have at least maintain soil organic matter or exceed 45 pounds per acre annu- reductions. Soil with less than 13 1.5 percent organic matter, increase it in the soil,” he said. ally during the previous three years, and phosphorous levels may not exceed 8 pounds per acre annually during the previous divide still remains evident even farm in the summers,” said panBY MIKE ORSO six years. at the four Illinois public universi- elist and McDonough County Surrounded by some of the “A lot of our soils are overties with agricultural academic Farm Bureau President Cody most fertile farmland in the loaded with phosphorous, not programs.

Hunt of Blandinsville. “You just world, the rural versus urban only in areas with livestock but Western Illinois University don’t have that anymore. The (WIU) Collegiate Farm Bureau number of farmers is getting fewmembers tried to bridge that gap er and fewer, so whatever we can in Macomb last week when they do to tell our stories are good held the first Illinois college cam- opportunities.” pus screening of the documenHunt and other panelists fieldtary, “Farmland.” ed audience questions on such Despite frigid temperatures topics as farm succession, financand blowing snow, about 75 stuing, animal care and GMOs facilidents, faculty and community tated by moderator Holly Spanmembers attended the movie, gler, a Marietta farmer and special which profiles six, young U.S. projects editor for Prairie Farmer farmers. magazine.

“People really don’t like to get While panelist and fruit and out of their dorm rooms when vegetable grower John Curtis of the snow falls, but we did have Macomb thought the documengood representation of the comtary “glorified certain aspects of munity as well as students here,” agriculture,” he believes it serves said Jenny Jackson, a Jacksonville a purpose in generating conversasenior and WIU Collegiate Farm tions about today’s agriculture.

Bureau president.

The Illinois State University Following the documentary, Collegiate Farm Bureau plans to attendees participated in a discus- hold a screening of “Farmland” sion about the movie and modern on its Normal campus in early farming that included a panel of April. The U.S. Farmers & western Illinois farmers — local Ranchers Alliance (USFRA), livestock producers as well as which financed the documentary, corn, fruit, soybean and vegetable plans to offer retail availability of farmers. it on DVD next month. Illinois “It used to be that everyone Farm Bureau is an affiliate of had a grandpa or uncle who USFRA, which complements the farmed, and they’d go back to the Illinois Farm Families® program.

WIU hosts first ‘Farmland’ college screening

There’s a difference between field experts and experts in the field.

At FS, we’re experts in the field. Our crop specialists are driven to maximize every acre and bring the latest agronomic technologies and innovations to your farm. Whether recommending the appropriate opriate hybrid or varietyy,, nutrient management m for optimum growth, or advice on disease and pest management, our crop specialists are always focused on pointing your operations forward. So, the only thing you’ll be asking FS is, what’’s next?

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©2013 GROWMARK, Inc. A14141

Tuesday: • FarmWeek: “The Early Word” • Val Dolcini, USDA Farm Service Agency: farm bill • Jim Angel, Illinois State Water Survey Wednesday: • Alan Jarand, RFDRN, hosts live discussion from the Governmental Affairs Leadership Conference with Richard Guebert Jr., Illinois Farm Bureau president; Mark Gebhards, IFB exec-

utive director governmental affairs and commodities: state and national legislative update • Sen. Andy Manar, D-Bunker Hill: education funding Thursday: • Harry Cooney, GROWMARK: energy update • Spencer Parkinson, Decision Innovation Solutions: agriculture and the Illinois economy • Cliff Johnson, National Journal: politics and social media Friday: • David Yepsen, Paul Simon Public Policy Institute: state budget analysis

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Page 9 • Monday, February 23, 2015 • FarmWeek

DAMS — Market outlook meeting, 6 p.m.

Tuesday at John Wood Community College cafeteria. Gary Schnitkey, University of Illinois Extension, will speak. Call 222-7305 for reservations by Monday.

HAMPAIGN — Music of the Heartland presented in partnership with the Champaign-Urbana Symphony Orchestra at 7:30 p.m. March 6 at Krannert Center for the Performing Arts. The evening will include an antique tractor photo opportunity. Cost is $20.

Limited tickets are available at the Farm Bureau office. Call 352-5235 for tickets or more information.

OOK — Tickets for McDonald’s All American Games, 5:30 p.m. April 1 at the United Center. Net proceeds will benefit the Ronald McDonald House Charities.

Call 708-354-3276 or visit {cookcfb.org} for more information.

OUGLAS — Women’s Committee roundtable luncheon discussion 10 a.m.

Wedneday at the Farm Bureau office. Ronald Pierce, Pierce Farm Management, will speak.

Call 253-4442 for more information.

FFINGHAM — OSHA agriculture regulations meeting, 7 p.m. March 3 at the Farm Bureau office.

Dustin Miller, OSHA, will speak. Call 342-2103 for reservations by March 3. Reservations are not required, but appreciated.

• Creating a farm plan — getting geared up for 2015, 8 a.m. March 6 at the Farm Bureau office. Topics will include seed and fertilizer inputs, precision data and machinery. Call 342-2103 for reservations by March 5. Reservations are not required, but appreciated.

• Annual Meeting dinner, 6 p.m. March 9 at Teutopolis Knights of Columbus Hall.

Jeff Nalley, Cromwell Ag Radio Network, will speak.

Cost is $3. Call 342-2103 for reservations by March 2.

AYETTE — Anhydrous awareness training, 9 a.m. March 6 at South Central FS in Vandalia. Call 283-3276 for reservations by March 3.

ORD-IROQUOIS — Market outlook breakfast meeting, 8 a.m. March 5 at

the Farm Bureau office in Gilman. Brian Basting and Dave Fogel, Advance Trading, will speak. Call 1-800-4240756 for reservations by March 3.

ENRY — Four, $1,000 Foundation scholarships and six, $2,000 Wilbert and Carol Keppy Foundation scholarships are available. Find applications at {henrycofarmbureau.org} or by email at kbhcfb@theinter. com. Application deadline is March 6. For more information, call 937-2411.

ANKAKEE — Annual meeting, 5:30 p.m.

March 5 at Kankakee Hilton Garden Conference Center.

Dinner will begin at 6:30 p.m.

Dan Proft, radio personality and 2010 candidate for governor, will speak. Tickets must be purchased in advance. Cost is $15 for members and $30 for nonmembers. Call 815932-7471 by March 3 for tickets.

ASALLE — Grain production and outlook dinner meeting, 6 p.m. March 9 at Pitstick Pavilion, north of Ottawa. Dan Arkels, local farmer, and Joe Camp, AgriVisor, will speak. Call 4330371 to register by March 5.

EE — Women in Agriculture Conference, 8 a.m. March 20 at Jumer’s Casino and Hotel in Rock Island.

Registration is open to women.

Cost is $50 if paid on/or before Saturday, $60 after Saturday and $75 the day of the conference. Visit {womenin agricultureconference.com} to register.

• Public Relations Committee Farmers Share Breakfast, 8 to 11 a.m. Saturday at Loveland Community Building in Dixon. Cost is 50 cents. Call 857-3531 for more information.

• Young Leaders attending Ice Hogs game, 7 p.m. March 21 at BMO Harris Bank Center. Ticket prices range from $14 to $16. Call 857-3531 or email leecfb@comcast.net for reservations by March 10.

IVINGSTON — Defensive driving course, 9:30 a.m. March 25 at University of Illinois Extension office in Pontiac. Doug Sommers will teach the twoday course. Upon completion, drivers may be eligible for insurance discount. Cost is $10. Call 842-1103 for

The University of Illinois Extension will host a free workshop on high tunnel production from 10 a.m. to noon March 19 in the Jackson County Extension office, Murphysboro. Registration is requested by March 17.

Topics will include soil

steaming, spring crops that grow well in high tunnels and overwintering crops in high tunnels. Participants will gain hands-on experience.

To register or for more information, call the Jackson County Extension office at 618-687-1727.

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High tunnel workshop slated March 19

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registration by March 6.

ONROE — On-theroad seminar from 10 a.m. to 2 p.m. March 4 at Gateway FS Structures in Red Bud. Kevin Rund, Illinois Farm Bureau senior director of local government, and an Illinois State Police representative will speak. Call 939-6197 for reservations by Thursday.

• Viewpoint dinner meeting, 6:30 p.m. March 2 at Bully’s in Columbia. Call 939-6197 for reservations by Wednesday.

• Agriculture update dinner, 6:30 p.m. March 9 at Monroe County Annex. Robert Bellm, U of I Extension, and Adam Parker, Gateway FS, will speak.

Call 939-6197 for reservations

by March 4.

OULTRIE — Charles B. Shuman $500 scholarship. Applicants must be a resident of Moultrie County, and a graduating high school senior or currently enrolled in a university or community college. Applicant should exhibit potential for successful completion of a course of study in agriculture.

Call 728-4214 for an application. Application deadline is March 13.

IATT — Farm bill breakfast meeting, 8

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a.m. March 10 at the Farm Bureau office. Doug Yoder, IFB senior director of affiliate and risk management, will speak. For reservations, call 762-2128 or email piattfb@ piattfs.com by March 6.

OCK ISLAND — Market outlook dinner meeting, 6:15 p.m. March 4 at Lavender Crest Winery, Colona. Elwynn Taylor, Iowa State University, and Mike Schaver, Gold Star FS, will speak. Cost is $25 in advance and $30 at the door. Call 7367432 for reservations. Make reservations by Wednesday to guarantee a meal.

T. CLAIR — Young Farmers blood drive, 3 to 7 p.m. Feb. 24 in the Farm Bureau auditorium. A form of identification is required to donate. Call 233-6800 for more information.

• On-the-road luncheon seminar, 10 a.m. March 4 at Gateway FS Structures in Red Bud. Call 233-6800 to register

by Feb. 23.

ASHINGTON — On-the-road seminar, 7 p.m. March 4 at Kaskaskia College’s Agriculture Building. Kevin Rund, IFB senior director of local government, will speak. Call 327-

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3081 for more information.

AYNE — On-theroad dinner seminar, 6 p.m. March 5 at Frontier Community College Foundation Hall in Fairfield.

Kevin Rund, IFB senior director of local government, will speak. Call 8423342 for reservations by Friday.

HITE — On-theroad luncheon seminar, noon March 6 at the Farm Bureau office. Kevin Rund, IFB senior director of local government, will speak. Call 382-8512 to register by Friday.

OODFORD — Young Leader meeting, 6:30 p.m. Thursday at the Farm Bureau office.

Linda Olson, IFB manager of consumer communications, will speak. Email wcfbmgr@gmail.com by Thursday noon to register. Call 467-2347 for more information.

• Defensive driving class, 8 a.m. March 4 at the Farm Bureau building. Cost for eight-hour class is $20.

Lunch will not be provided.

Call 467-2347 or email woodfordcfb@gmail.com to register by March 3.

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FarmWeek • Page 10 • Monday, February 23, 2015

What a difference a year makes in propane demand As we look forward to newborn livestock playing in pastures and think about spring planting, we can also look back on last year’s cold winter and the effect it had on the propane industry. Last year, we were Dan Pannier consumed with high prices and tight supply for most of the winter and into early spring.

U.S. stocks a year ago this

week were just more than 30 million barrels, while today we are at 65 million barrels. Current stocks are very high compared to previous years and the five-year average. With inventories at record levels, the price of propane is much cheaper than a year ago. After reaching nearly $5 per gallon in late January 2014, we now see Conway trading in the 55-cent range.

Propane demand is about 200,000 barrels per day below the five-year average.

One of the biggest differences is that petrochemical demand for propane is currently about 50,000 barrels per

day behind the five-year average, but in September it was more than 100,000 barrels a day behind the five-year average.

Why the change? It’s not surprising the price of propane compared to other petrochemical feed stocks is much more attractive than it was in September.

While logistics have not changed much compared to 2014, planning has played a major role in price and supply.

Last year, the industry struggled to get propane where it was needed when it was needed. Pipelines did not increase

capacity and truck availability did not increase, but planning ahead helped with supply.

The propane industry held many meetings on the state and federal level to find solutions to the supply constraints the U.S. faced last winter.

Making sure tanks were full ahead of the crop drying demand, then topping off tanks before the heating season proved to be a success.

Planning, additional rail terminals and lower demand have all helped with supply and price this winter.

As we look into next year, watch production, demand,

The arrival of the latest arctic blast in Illinois last week momentarily put the chill on any thoughts of early spring fieldwork.

But wheat growers in the southern third of the state didn’t necessarily mind heavy snowfall that accompanied the band of winter weather.

Large portions of southern Illinois last week received 6 to 8-plus inches of the white stuff.

“I’m glad in my part of the world we got some good snow cover on top (of the winter wheat crop),” Kyle Brase, president of the Illinois Wheat Association (IWA), told the RFD

Radio Network at the Illinois Wheat Forum in Mount Vernon. “It should help insulate (the wheat crop) from some really cold temperatures (which Kyle Brase plunged to single digits).”

Brase and other wheat growers are concerned the late-planted crop didn’t establish much growth in many areas before dormancy.

Farmers could respond to that by applying nitrogen to fields lacking growth once the

crop breaks dormancy. Illinois farmers last fall planted 550,000 acres of wheat, down 190,000 acres from the previous year.

“I’m optimistic we can still have a high yielding crop,” Brase said. “It just might take a little more work.”

Many farmers last year battled issues with Fusarium head scab, which was spread by heavy rains during the flowering stage of the wheat crop.

IWA hosted two sessions at its wheat forum on strategies to mitigate outbreaks of scab, ranging from seed selection to timing and application methods of fungicide.

“Where I live, we had some really good wheat,” said Brase, who farms near Edwardsville (Madison County). “But when I talk to producers to the south and east, they had a lot of issues (with scab). We tried to address it” at the wheat forum.

IWA celebrates 20 years IWA last week at the forum

BY DAN PANNIER

inventories and crude oil.

Crude is a major driver of propane prices. The Bakken shale in the Dakotas and southern Canada is not only one of the hot spots for propane production, but also for crude production.

Propane is currently in the mid-40s as a percent to crude value; as the flowers begin to bloom, we may see the percent of propane to crude weaken slightly.

Dan Pannier serves as GROWMARK’s propane operations manager. His email address is dpannier @growmark.com.

Wheat growers welcome snow as temperature plunges

BY DANIEL GRANT

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $34.33-$46.49 $42.20 40 lbs. (cash) $65.00-$78.00 $72.66 Receipts

This Week 75,853 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 109,336

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

FarmWeekNow.com

Listen to RFD Radio’s interview with Kyle Brase about Illinois’ wheat outlook this year at FarmWeekNow.com.

kicked off a yearlong celebration of its 20th anniversary.

“It’s a pretty exciting time,” Brase said. “Membership continues to grow.

“The fundamentals haven’t changed,” he said of IWA’s role in the industry the past two decades.

“We’re trying to promote wheat in Illinois and make sure we have a quality product and high yields, and this is a product agriculture can still use in this area.”

About 120 people braved cold temperatures and slick roads last week to attend the forum.

TEAMING UP TO LEAD

Wheat checkoff in the works?

A key to boosting yields and the quality of wheat revolves around improved technology and updated farming practices.

Brase said the IWA board continues to consider a refundable state checkoff as a means to fund much-needed research in the industry.

“As state budgets get tighter, we know we need to generate more income as an industry as we look at different research projects,” he said. “We’re still discussing it (the possibility of introducing a refundable state checkoff), but we’re not sure if the timing is right to go forward with it.”

IWA last year hosted its first state wheat yield contest to spotlight cultural practices that boost wheat yields in the state. The program, which attracted about 40 entries, will be held again this year.

For more information, visit the IWA website {illinoiswheat.org}.

(Prices $ per hundredweight) This week Prev. week Change $57.18 $57.11 $0.07 $42.31 $42.26 $0.05

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

Steers Heifers

This week $159.98 $160.00

Prev. week $161.51 NA

Change -$1.53 NA

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) Prev. week Change This week $210.58 $211.18 -$0.60

Lamb prices Negotiated, wooled and shorn, 136-169 lbs. for 134-168.90 $/cwt. (wtd. ave. 147.61) ; wooled and shorn 171-189 lbs. for 125-137 $/cwt. (wtd. ave. 131.30).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 02/12/2014 49.1 14.8 28.5 02/05/2014 54.6 14.6 27.6 Last year 54.5 11.6 33.2 Season total 1480.4 585.9 645.3 Previous season total 1270.8 839.3 635.8 USDA projected total 1790 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Agricultural Leaders of Tomorrow participants, from left, Phillip Hemker of Clinton County, Joel Gardner of Richland County, Phillip Vonder Haar of Bond County and Brent Ford of Wabash County strategize to win a three dimensional tic-tac-toe game. The 2015 ALOT class, conducted in southern Illinois, trained 22 participants last week on leadership styles and communications. (Photo by Ken Kashian)

Corn Strategy

USDA soybean plantings a surprise

USDA analysts countered the popular trade wisdom that lower corn and winter wheat plantings would lead to larger soybean plantings.

The plantings of the other major crops were not much of a surprise to the trade.

It must be remembered none of the data released at USDA’s annual outlook forum is survey based. That leaves the door open for a different set of forecasts in its March 31 prospective plantings report. Even then, spring weather and price shifts can create a different mix of plantings by the time agency surveys for the June acreage report. Statistically, it is a stronger report than the March 31 report.

But the soybean planting number forecast by USDA, 83.5 million acres (down .2 million from last year), implies it may be picking up features the trade has been overlooking. Although it’s not readily apparent from what we learned from the forum, we suspect the agency is looking at some anecdotal evidence suggesting more marginal acres will not be “actively” cropped this year.

Expected plantings for the eight major crops is expected to decline 3.3 million to 254.6 million acres this year.

Because USDA doesn’t forecast all crops, it’s difficult to discern the total impact, but the decline is consistent with the 1.8 million acre decline in plantings of all crops in major corn areas in 2014.

Including Conservation Reserve Program acres, the total crop area in major corn

areas dropped 2.9 million last year.

The impact of the smaller soybean plantings is seen in the supply/demand forecasts released at the forum. The initial ending stocks estimate for the 2015 marketing year was 430 million. That’s a dramatically smaller scenario than the mid-500 numbers the trade has been thinking the last few months.

USDA increased usage sharply to get ending stocks down to that level. But the demand forecasts are consistent with its long-range models and ongoing world protein demand.

Corn plantings, 89 million acres (down 1.6 million from last year), were close to trade expectations. So were the accompanying supply/ demand numbers. Nevertheless, the 1.687 billion bushel stocks projection represents a potential tightening of long-term supplies, not expansion.

Wheat numbers were by far the most negative. Plantings, 55.5 million acres, are forecast to drop 1.3 million from last year. That implies a possible increase in spring wheat acres. Ending stocks were forecast to increase 71 million bushels to 763 million. But USDA used a relatively high yield to achieve the mix. With a crop that’s in moderately poor condition, and poor moisture conditions dominating the Southern Plains, a high yield and output are far from certain.

In the end, these represent a starting point to work from. And we don’t have any early world scenarios to work with either. But they do hint the persistent bearish scenario that’s been popular since last fall is far from a “slam dunk.”

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ü2014 crop: The corn market continues to follow its historical precedents for having choppy, sideways markets during winter. Better opportunities to make sales will come; only make needed sales. If you need to sell, we’d recommend a basis contract to secure cash, leaving pricing open into spring. Continue to hold 2013 crop for expected long-term improvement. ü2015 crop: Technical aspects continue to build the case for higher prices. We see no reason to price new crop at these levels. Consider buying out-of-the money, new-crop call options you can make cash sales against later this spring or summer. vFundamentals: USDA’s forecast for the 2015 crop did not contain any huge surprises.

Still, the smaller ending stocks forecast is somewhat supportive, especially with prices near the lower end of the modern range. Export demand remains on track to reach the USDA forecast, if not exceed it.

Weather and livestock numbers still hint feed demand may be underestimated.

Page 11 • Monday, February 23, 2015 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: South American crop talk keeps the soybean market acting somewhat defensively, but demand remains robust. Technical features still suggest better selling opportunities should be ahead. ü2015 crop: The USDA acreage forecast should have taken away bearish talk for now, enhancing the possibility prices are in the lower end of the major trading range. We have no interest in pricing 2015 crop at these levels. vFundamentals: USDA’s 83.5 million acre planting number, along with its supply/demand forecast, had to surprise many in the industry.

The forecasts countered those expecting another big increase in supply next year. Brazilian harvest continues to move forward, but supplies are still slow getting to port, keeping a lid on the entrance of their crop into the pipeline. Harvest results still hint the size of their crop may be revised slightly lower yet. Argentine crops remain in good condi-

tion. Some private analysts are projecting output to reach 57 to 58 million metric tons.

Wheat Strategy

ü2014 crop: Old-crop sales should be 75 percent complete. Better opportunities for new sales are expected. ü2015 crop: New-crop wheat should be 25 percent priced. vFundamentals: Traders spent the early part of February with the expectation of doing some export business with Egypt. Futures sold off when the top importer decided to withdraw its tender because U.S. wheat offers weren’t near

a competitive rate. USDA published a set of new-crop estimates from the Ag Outlook Forum late in the week. Government analysts expect the crop size to grow based on better yields. Output gains for hard red wheat are thought to offset a slight reduction in soft red. At this time, USDA expects less of the crop to be lost before harvest. Still, it is early to be confident in a bigger new crop, especially considering cold, dry winter wheat weather. Domestic buyers are finding value in the current market, but export competitiveness remains threatened by a strong dollar.

FarmWeek • Page 12 • Monday, February 23, 2015

Rural Development building a national, state bioeconomy

Are you familiar with the phrase, “Waste not, want not?” Did your grandma share it with you?

Believe it or not, the phrase lives on and even has its own definition in The American Heritage New Dictionary of Cultural Literacy: 1. If we don’t waste what we have, we’ll still have it in the future COLLEEN CALLAHAN and will not lack (want) it.

2. Wise use of one’s resources will keep one from poverty. For example, I just hate to throw out good food — waste not, want not.

This proverbial saying was first recorded in 1772 but had an earlier, even more alliterative version in 1576 — willful waste makes woeful want.

Well, some things never change, and today USDA Rural Development is building on the “waste not, want not” philosophy by helping create a thriving bioeconomy in rural America.

What is the bioeconomy? It is the manufacturing, distribu-

tion and sale of products derived from biological materials. And there are proven examples of bioeconomy production here in Illinois.

• A dairy farm in northern Illinois using an anaerobic digester to turn manure from its herd into electricity.

On Dec. 19, 2014, the Tax Increase Prevention Act (TIPA) was officially signed into law. While several “tax extenders” were previously effective through 2013, those extenders expired at the end of the 2013 tax year. TIPA generally served to “extend the extenMARC LOVELL ders” guest columnist again to make them effective through 2014 (albeit on a retroactive basis because it was so late in 2014 by the time Congress acted on the matter).

Congress still needs to take action on tax laws for 2015, but TIPA does provide farmers with the ability to benefit from provisions that were extended through 2014. There are some key items that farmers may be able to claim on their 2014 tax returns. Some of these more important tax extenders include: • State and local sales tax deduction. While state and local income taxes have long qualified as an itemized deduction under established tax rules, the ability to instead deduct state and local sales taxes is an option that previously expired at the end of

2013. This option has been extended through 2014. Farmers who paid little or no state income taxes, but purchased big ticket items subject to state sales taxes may benefit from this extension.

• Mortgage debt exclusion. Generally, if a debt is canceled, the canceled amount of debt constitutes taxable income. However, TIPA extends an exclusion from taxable income of canceled principal residence mortgage debt for 2014. Up to $2 million in principal residence mortgage debt may be excluded ($1 million if the farmer is married and filing separately).

• Mortgage insurance premiums deduction. Part of the TIPA extenders package included the deduction for mortgage insurance premiums. These premiums are generally treated as qualified residence interest, and while subject to the AGI phase-out along with certain other itemized deductions, the premiums generally remain deductible for 2014.

• IRA charitable deductions. Through 2013, farmers over age 70½ could make taxfree IRA distributions of up to $100,000 to a qualified charity. TIPA extends this

• A family-owned greenhouse in Putnam County adding a biomass boiler using wood waste to heat its stateof-the art facility.

How does Rural Development help support the bioeconomy? Our Rural Business-Cooperative Service can

help entrepreneurs by providing technical assistance as well as funding for feasibility studies, business plans, marketing plans and community development strategic planning.

Once the business or project is ready to launch, Rural Development can provide funds to buy land, build facilities and acquire or lease machinery and equipment.

What if it’s an existing business that needs to reduce operating expenses or wants to expand?

Our business programs can provide funding for working capital, refinancing or restructuring a loan or purchasing new equipment or making improvements.

Rural Development isn’t alone in supporting the bioeconomy; we have numerous partners.

The Farm-to-Fly Initiative is a partnership with the Federal Aviation Administration and the aviation industry to promote aviation biofuels to help meet the nation’s energy needs. USDA and the Department of Navy have an agreement to support the use of advanced biofuels on naval

bases. Also, the U.S. Navy, along with the Department of Energy, have agreed to a USDA partnership to invest up to $510 million over three years to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation.

And what about all of those downed trees in our nation’s forests? We now have a Rural Wood to Energy initiative to help improve the safety and health of those forests.

So, what is the bioeconomy? It’s the more than 3,100 companies today that are taking agricultural waste products and agricultural residues and turning them into new products. It’s even you!

It’s you, using our Rural Energy for America Program to improve the energy efficiency of your grain dryers.

It’s you, using solar, wind or geo-thermal to power your rural business. It’s you, doing what your grandma suggested — “Waste not, want not!”

provision through 2014. The deadline, however, to make use of this provision was Dec. 31. (So, only farmers that made such charitable distributions before the end of 2014 will be able to treat those distributions as charitable deductions).

• Bonus depreciation.

TIPA extends the 50 percent bonus depreciation provision through 2014 (and the bonus depreciation provision for aircraft and certain other property with a longer production period is extended through 2015). Bonus depreciation is generally applicable to only purchases of new property, (not purchases of used property).

Generally, for business vehicles, this extension increases the available amount of first-year depreciation by approximately $8,000. For trucks and vans first placed into service during 2014, this extension will allow farmers to take advantage of a depreciation cap of $11,460 (rather than a much lower cap of $3,460 had bonus depreciation not been extended).

The applicable depreciation cap for a luxury vehicle first placed into service for

2014 is $11,160 with the bonus depreciation extension (up from the $3,160 that would have been the cap without the bonus depreciation extension). While TIPA extended bonus depreciation through 2014, it expires at the end of 2014 (so TIPA does nothing for bonus depreciation for 2015 onward).

• Section 179 expensing.

Section 179 generally allows the immediate expensing of the cost of qualified assets (rather than taking a gradual depreciation deduction), subject to certain limits. TIPA extends Section 179 expensing, to $500,000 with a $2 million investment limit for 2014. Farmers who have made purchases of qualifying assets may benefit from this extended provision.

Note that at the end of 2014, the Section 179 expensing provision reverted back to a $25,000 dollar limit with a $200,000 investment limit for 2015. These will be the terms of Section 179 for 2015 until Congress enacts further changes for 2015.

In addition, the production tax credit, which may have provided the farmer with a per-kilowatt-hour tax credit for electricity generated by

qualified energy resources, was also extended through 2014.

Moreover, farmers who benefitted from the biodiesel and renewable diesel production credits in 2013 will be pleased to know that these credits have likewise been extended to be effective through 2014.

Lastly, the Achieving a Better Life Experience Act was a part of TIPA that was enacted in December 2014. For 2015 onward, this law allows the establishment of taxfavored savings accounts (similar to the familiar section 529 college savings accounts) for individuals with disabilities. Farmers with disabled family members may wish to consult with their tax adviser about this new provision.

With tax preparation season now under way, farmers should ask their tax preparer about possible benefits from these, and any other TIPA provisions and extensions that may be claimed on a 2014 tax return.

Illinois Rural Electric Cooperative (IREC), located in Winchester, installed the first utility-scale photovoltaic solar energy system by a cooperative in Illinois. The project was funded in part by a grant through the Rural Development Rural Energy for America Program. IREC also hosts local students in a hands-on learning environment about renewable energy. (Photo courtesy of Illinois Rural Electric Cooperative)

Colleen Callahan serves as Illinois director for USDA Rural Development.

Farmers may reap benefits from 2014 tax law

Marc Lovell serves as assistant director of the Tax School Program at the University of Illinois Tax School. He also maintains a private law practice.