Farmweek february 24 2014

USDA officials confirmed they expect farmers to plant a record 79.5 million acres of beans, up 3 million acres from last year..............4

Wheat growers need to be on the lookout for heaving problems and make integrated disease management plans...................................6

IFB Vice President David Erickson discusses the importance of member involvement in policy development...................................12

A service of

Ag Census: Farm numbers show decline

Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, February 24, 2014

BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

Preliminary results of the 2012 U.S. Census of Agriculture released last week showed some continuing trends and revealed a few surprises.

It probably came as no surprise the average age of principal farm operators from 2007 to 2012 increased 1.2 years. That’s been the trend for 30 years.

The average age of U.S. farmers currently stands at 58.3 years compared to 57.1 years in 2007 and 55.3 years in 2002.

The average age of females who are principal farm operators is even higher at 60.1 years.

“It’s clear principal (farm) operators continue to grow older,” Ag Secretary Tom Vilsack said last week at the USDA Ag Outlook Forum in Arlington. “We’ll likely see the continued aging of the farm population.”

Consolidation in the industry also was apparent in the latest census.

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Two sections Volume 42, No. 8

FarmWeekNow.com

For more information about the newly released Ag Census numbers, go to FarmWeekNow.com.

The total number of farms in the U.S. as of 2012 totaled 2.11 million, down 4.3 percent from 2007. A farm is defined as a business that produced or sold $1,000 worth of ag products in 2012.

Meanwhile, the average size of farms in the U.S. increased 3.8 percent, from 418 acres in 2007 to 434 acres in 2012.

In Illinois, the number of farms in the latest census totaled 75,087 compared to 76,860 in 2007.

While the number of farmers and farms decreased nationwide during the recent 5-year period, the value of ag products increased dramatically (32.8 percent) in 2012 to a total of $394.6 billion, up $97 billion since 2007.

“We’re coming off three of

Gellerman Road, west of Petersburg in Menard County, flooded Thursday afternoon. High winds, tornadoes and rain hit parts of the state. Read about storm damage on page 8. (Photo by John Gellerman)

the best years in U.S. agriculture, ever,” said Bob Young, chief economist with the American Farm Bureau Federation.

The number of beginning farmers who are principal operators declined 19.6 percent — a finding that raised some eyebrows.

However, Young noted many beginning farmers join existing operations and aren’t counted as principal operators.

A more extensive view of farm

demographics will be in the final Ag Census, which is scheduled for release in May. The numbers in the 2012 census also could be influenced by the fact that it was conducted in a drought year and the participation rate in the Census (about 80 percent) was about 5 points lower than average.

“One thing that’s very important to recognize is this is the first census in the modern era, at least since 1982, conduct-

ed in a drought year,” Young said.

The census, though, revealed a need to attract more young people to the industry, Vilsack noted.

“We need more young people to get engaged in this business,” the ag secretary said. “It’s important not just because (ag) is a driver of the economy, but it also makes us food secure.”

needed to exercise the discretion that ... Congress gave us.”

Grundler spoke last week at the National Ethanol Con- Chris Grundler ference in Orlando.

He said the proposed rule was EPA’s decision alone. He rejected suggestions that it was proposed to provide political cover for President Barack Obama if high Renewable

Identification Numbers prices caused gasoline prices to spike.

“What we’re really trying to do here is put the RFS on a manageable trajectory so that we’re just not fighting about it every year because that’s not good for anybody,” he said.

He emphasized that the proposal is just that — a proposal.

The final rule, he said, will take public comment and updated data into consideration.

In November, EPA proposed the renewable fuel mandate in the RFS be lowered from 14.4 billion gallons to 13 billion gallons. The advanced

fuel mandate, including biodiesel and E85 fuel, would drop from 3.75 billion gallons to 2.2 billion gallons.

He said the agency received more than 100,000 public comments on the proposed rule. Of those, he said, about 6,000 were considered “unique,” personalized and not part of a campaign. A December EPA public hearing broke records for the agency, both in terms of how many people attended and how many testified, he said.

EPA: RFS proposal addresses ‘practical realities’

BY DEANA STROISCH FarmWeek

The Environmental Protection Agency (EPA) proposed reducing volume requirements in the Renewable Fuel Standard (RFS) to address “practical realities in the marketplace,” according to Chris Grundler, the agency’s director of the Office of Transportation and Air Quality.

“We looked at the number in the law and what was consumed based on the information we had at the time,” Grundler said. “We saw no way to get from A to B and that we

FarmWeek on the web: FarmWeekNow.com

Please see Census, page 4

Please see EPA, page 3

Illinois Farm Bureau on the web: www.ilfb.org ®

Quick Takes

FarmWeek Page 2 Monday, February 24, 2014

STATE PREPARING FOR POTENTIAL FLOODING — With melting snow and rain, the Illinois Emergency Management Agency (IEMA) is contacting the National Weather Service and local emergency management agencies statewide about flooding. If local assistance is needed, IEMA will work with more than a dozen state agencies to coordinate deployment of state resources and personnel.

The Illinois Department of Natural Resources (IDNR) is collecting river stage and precipitation data, and reviewing river and precipitation forecasts. IDNR staff are providing IEMA with field observations about a possible flood emergency.

Last week, Gov. Pat Quinn announced the state incident report center was activated to coordinate the state’s flood response and to communicate with state agencies, the Illinois National Guard and the Red Cross.

STATE SODA TAX BUBBLING — Legislation introduced in the Illinois Senate proposes to add a new state tax to sugary drinks, such as soft drinks, sweetened tea, fruit drinks, energy drinks and sports drinks. The beverages would be taxed at one penny per ounce.

State Sen. Mattie Hunter, D-Chicago, said she is sponsoring the bill to raise funding for health services and education programs and to promote healthy living.

A state coalition, including Illinois Farm Bureau, opposes the legislation.

ILLINOIS TEACHER NABS SCHOLARSHIP — Mary Zumwalt of Altamont recently received one of nine American Farm Bureau Federation (AFBF) Foundation for Agriculture scholarships.

The Altamont Lutheran teacher won a $1,500 scholarship to attend the National Agriculture in the Classroom Conference in Hershey, Pa., in June. Scholarships were awarded for exceptional efforts in encouraging agricultural literacy.

The Foundation, through the White-Reinhardt Fund for Education, sponsors the scholarships in cooperation with the AFBF Women’s Leadership Committee.

Educators nationwide attend the conference to learn about incorporating real-life agricultural applications into science, social studies, language arts, math and nutrition lessons.

APPLICANTS SOUGHT FOR MCCLOY PROGRAM — Farm Bureau leaders or staff interested in traveling to Germany to learn about German agriculture may apply for the John J. McCloy Foundation program by March 7.

Eligible applicants must be between the ages of 28 and 40 and apply through their county Farm Bureau. Participants travel in October and November.

Illinois Farm Bureau may nominate one Farm Bureau leader or staff member. For more information, contact Peggy Romba, IFB program manager, at 309-557-2007 or promba@ilfb.org.

(ISSN0197-6680) Vol. 42 No. 8 February 24, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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

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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 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

TRANSPORTATION

State rules generate questions about ATVs

state’s definition covers recreational vehicles capable of cross-country travel without a road or trail, such as ATVs and cross-country motorcycles. Farm equipment being used for farming is not included.

The law generally applies to OHVs whenever they are

That exemption does not include a club or association vehicle owner that leases the land for hunting or recreation, or if the OHV is used as part of an outfitting business.

OHVs used for farming are exempt — as long as the vehicle is being “used for activities associated with farming or livestock production,” Rund said.

Vehicles subject to the fee are: ATVs, utility vehicles, off-highway motorcycles and golf carts. Also included are

John Deere Gator-type vehicles used on many farms and known officially in Illinois as recreational off-highway vehicles (ROHVs.) Every stamp will expire March 31 the year following its purchase. Stamps issued early in the year, for example January, will be good for more than 12 months, while those bought later will still expire in March.

Stamps must be displayed on the front half of the OHV. If lost or destroyed, a replacement stamp must be bought.

Those found in violation face a $120 fine.

For a list of locations where stamps are sold, visit {www.dnr.illinois.gov/LPR/Pages/LicensePermitVendors.aspx}.

Some farmers still ask about driving ATVs on public roads, according to Rund.

Under certain conditions for farming purposes only, farmers are allowed to operate ATVs and Gator-type vehicles of limited size on county and township roads, Rund said.

This is unrelated to the requirement to buy an OHV stamp.

Farmers are not authorized to drive those vehicles on state highways or city streets.

Exploring careers in food, plants and business might lead some fourth graders to agricultural careers. If so, they’ll have “Illinois Career Ag Mag” to thank.

Illinois Ag in the Classroom (IAITC) last week launched a revamped agricultural career magazine. “This Ag Mag opens their eyes to careers they may not think of as agriculture,” said Kevin Daugherty, IAITC education director.

Geared for fourth graders, the magazine offers readers a sample of jobs in agricultural business, environmental services, natural resources, ag mechanics and plant, animal and food sciences.

The information includes the training and education required.

Although Ag Mags target elementary students, junior high and high school students might notice similar ag career categories appear in Illinois ag career profiles geared for them.

Daugherty noted the coordinated information and materials — even down to the same

colors — syncs the IAITC Ag Mag with Facilitating Coordination in Agricultural Education career information.

In the new Ag Mag, teachers are provided links to state Common Core Standards along with a suggested student writing exercise.

County Farm Bureau managers and district AITC coordinators just received ordering information for the new Ag Mag. Daugherty estimated county Farm Bureaus would

have copies shortly.

While IAITC produced an earlier ag career Ag Mag, that version expired in 2003, according to Daugherty. Last year, IAITC received a community investment grant from DuPont Pioneer.

The funding is being used to promote agricultural careers to students at a young age.

For more about Ag Mags, visit {agintheclassroom.org}.

— Kay Shipman

BY KAY SHIPMAN FarmWeek

Questions continue to surface about state rules for allterrain vehicles (ATVs), according to Kevin Rund, Illinois Farm Bureau senior director of local government.

Starting Jan. 1, the Illinois Department of Natural Resources (IDNR) started issuing a new annual $15 stamp in compliance with a 2012 state law requiring stamps on most off-highway vehicles (OHVs). Starting April 1, the stamps must be displayed.

“OHV is an umbrella grouping of different vehicle types,” Rund explained. The

FarmWeekNow.com

Additional details on new rules for ATVs are available at FarmWeekNow.com.

operated anywhere — except on land where the vehicle owner permanently lives, he said. The exemption can be extended to anyone the resident authorizes to ride on that property, according to IDNR officials.

Ag Mag promotes ag careers to young students

ETHANOL

Page 3 Monday, February 24, 2014 FarmWeek

Dinneen: Ethanol industry remains strong

BY DEANA STROISCH FarmWeek

Despite a drought and economic downturn, the state of the ethanol industry remains strong, according to Bob Dinneen, president and chief executive officer of the Renewable Fuels Association.

Last year alone, Dinneen said, the ethanol industry produced 13.3 billion gallons of fuel — the second highest production rate in history.

T he industr y also contributed 86,500 direct jobs to the economy in 2013, he said.

He also pointed to ethanol’s benefit to agriculture. Last year, the industry used starch from 4.75 billion bushels of corn and 150 million bushels of sorghum.

“That translates into more than $29 billion for America’s farmers,” Dinneen said.

“And the value-added benefits of ethanol have contributed to a revital-

ization across all of agriculture.”

Dinneen’s remarks were part of his annual state of the industry address delivered last week at the National Ethanol Conference in Orlando. More than 1,000 people attended.

This year’s theme was “Falling Walls, Rising Tides.” He said the mixed metaphor could ultimately define the year for the industry.

A “rising tide,” he said, describes the industry’s contributions to the economy. And walls remain plentiful.

Dinneen said he is hopeful that 2014 is the year the “blend wall comes crashing down” and that the “cellulose wall is cracked.” In addition, he said “the trade wall erected by Europe will be breached” and the “octane wall will crumble.”

“How will we do these things? How will these walls tumble?” he said.

“By reminding people time and again that ‘a rising tide lifts all boats’ (referring to a phrase used by John F.

Kennedy in 1963).”

He said the industry is committed to making sure consumers have access to clean-burning alternatives to petroleum.

“All we ask of Washington is one thing: Keep your word. It’s that simple,” he said.

Dinneen noted ethanol and the Renewable Fuel Standard (RFS) have “revitalized rural America.”

He urged President Barack Obama and his administration to reject the Environmental Protection Agency (EPA) proposal to reduce volume requirements in the RFS. He called EPA’s proposal an “inexplicable step backwards.”

Dinneen also said the industry must redouble its efforts to eliminate regulatory barriers to E15. Twenty-two states either allow E15 or are close to doing so, he said.

Only a handful of states allowed E15 to be used a year ago.

RFS holds key to renewable fuels future

The future of renewable fuels sits at a “key turning point,” according to Iowa State University’s Bruce Babcock.

“If the administration is serious about increasing the amount of renewable fuels, now is the time to do it,” said Babcock, Iowa State University Cargill Chair of energy economics.

Babcock, and other speakers at the National Ethanol Conference in Orlando, urged the Environmental Protection Agency (EPA) to keep the Renewable Fuel Standard (RFS) as it is.

In November, EPA proposed the renewable fuel mandate in the RFS be lowered from 14.4 billion gallons to 13 billion gallons. The advanced fuel mandate, including biodiesel and E85 fuel, would drop from 3.75 billion gallons to 2.2 billion gallons.

“The RFS has worked. The RFS will work. But only if EPA allows it to work,” said Geoff Cooper, Renewable Fuels Association vice president of research and analysis.

Not everyone agreed.

Dave Whikehart, Marathon Petroleum Co. director of product supply and optimization, said his company supports corn ethanol, but opposes mandates.

“The fundamental issue with the RFS ethanol mandate is that it is a market distorting attempt to transform the entire transportation fuel industry and has resulted in the E10 blend wall,” he said.

He said Marathon was an “early adopter” of ethanol blending, starting in

EPA A 10-member team is reviewing the comments. The goal is to have a final rule ready in June, but he admitted “that will be a very, very heavy lift.”

He said “much has been lost in the discussion.”

He said the agency sought public comment on a “durable policy” so that the market can

Continued from page 1

the Midwest decades ago before any mandates were in place.

In 2012, Marathon blended 1 billion gallons of ethanol, he said, exceeding its requirements.

The company also has invested in biofuels technology as well as three ethanol plants located in Indiana, Michigan and Ohio.

Through Speedway, the largest chain gas station in the Midwest, the company offers E85 fuel at 146 of its convenience stores. But there’s been “relatively poor customer acceptance” of E85 and low sales, Whikehart said.

“To date, these infrastructure investments have not produced the desired returns,” he said. “In this context, it makes sense that the entrepreneurs and business owners that own 95 percent of the retail fuel station fleet might be reluctant to risk the capital on infrastructure that does not offer return.”

During a panel discussion on the effect of the RFS on the ethanol industry, Babcock said the price of E85 historically hasn’t been low enough to make customers want to buy it. ”I don’t think it’s a failed fuel,” he said.

“I don’t think it’s been priced right. If you want consumers to buy something, you need to make it a good deal for them.”

Babcock, along with a colleague, studied the feasibility of meeting expanding ethanol targets and its effect on fuel prices.

Texas, California and Florida — in that order — have the highest number of flex-

have “some sense of certainty and predictability” about how the standards would be set in the future.

“What has been lost in the discussion is that the way we’re proposing this durable policy work is that each year, built in to the standards of the subsequent year would be the growth and capacity of the market to con-

Quinn urges EPA to reconsider Gov. Pat Quinn last week urged the Environmental Protection Agency (EPA) to reconsider a decision that would cause decreased production of ethanol and biodiesel.

“Illinois farmers benefit because they produce the materials needed for renewable fuels, and less dependence on foreign energy sources means consumers have a more stable and economical source of fuel,” Quinn said.

He wrote U.S. EPA Administrator

fuel vehicles, he found. Illinois had the fifth highest number. Meanwhile, most of the gas stations offering E85 are located in the Upper Midwest.

Babcock concluded that it’s “completely feasible” to reach the current 14.4 billion gallon mandate using about 700 million gallons of E85 — without adding pump stations or flex-fuel vehicles. The E85 fuel just has to be priced right, he said.

If 3,500 new stations are added where flex-fuel vehicles are located, Babcock estimated consumption of E85 would jump to 2 billion gallons.

“The consumption will follow investment,” he said. “Why would these new stations magically appear? The RFS is supposed to work to create the incentive for investment to take place to create the demand. That’s done through RIN prices.

tinue to use more higher ethanol blends ... All the focus is on the numbers.”

He pointed out that the agency proposed three approaches and each had different implications. Also lost, he said, was that EPA provided a “wide range of numbers” for each standard.

The most disappointing thing

Gina McCarthy urging reconsideration of EPA’s proposed new Renewable Fuel Standard rule. Included were comments from several Illinois state agencies about the benefits of renewable fuel production to the state’s and nation’s economic and physical well-being.

Quinn also submitted a letter to EPA as the new chairman of the Governors’ Biofuels Coalition, a bipartisan group of governors who support biofuel development and use.

High RIN prices create an incentive to get more RINs.” RINs, short for Renewable Identification Numbers, are essentially credits that are used as proof companies are complying with blending requirements in the RFS. They can be traded on the open market.

“The value of RINs generated by inducing more consumption is much, much greater than the cost of investment by our calculations,” Babcock said.

It’s worked before, he said, pointing to a decade ago when parts of the U.S. weren’t equipped to consume E10. Back then, a tax credit served as an incentive, he said.

His study also found that if RIN values increase, the retail price of gasoline would remain constant. — Deana Stroisch

he said he heard was the assertion that EPA no longer supports the development and use of biofuels.

“I’m here to tell you: That’s wrong,” he said. “That is absolutely wrong.

“We know because my team has done the modeling,” he said.

“We know that if we’re going to achieve what science is telling us

we must achieve in terms of greenhouse gas reductions by the middle of this century, if we want to avoid the worst impacts of climate change, biofuels have to be a part of that solution set,” he said. “We’re not going to be able to come up with the type of reductions, 80 percent reductions, simply by establishing efficiency standards.”

AG OUTLOOK

U.S. Trade Rep: Market access critical FarmWeek Page 4 Monday, February 24, 2014

BY DANIEL GRANT FarmWeek

U.S. ag exports for fiscal year 2014 could set a new record of $142.6 billion, USDA estimated last week.

If realized, ag exports would top the record set last year by $1.5 billion and provide a trade surplus of nearly $33 billion.

“Trade is vital to American agriculture,” U.S. Trade Representative Michael Froman said last week at the USDA Ag Outlook Forum in Arlington, Va. The U.S. currently exports about 25 percent of pork, more than 40 percent of soybeans, about half of wheat and rice, and 75 percent of cotton produced here.

Market access therefore is critical as U.S. producers seek opportunities to market larger crop supplies, Froman noted.

“Sustained growth in agriculture depends on opening markets,” he said. “Eighty percent of (world) purchasing power is outside the U.S.” The jump in U.S. ag exports

is due in part to tremendous demand from China, which this year could import a record $25 billion worth of U.S. ag prodMichael Froman ucts. U.S. ag exports also increased in Colombia, South Korea and Panama since free trade agreements went into effect.

Elsewhere, market access for U.S. beef was expanded in Japan, Hong Kong and Mexico.

Russia also appears ready to resume imports of U.S. turkey, Froman noted.

“We need to continue to look for ways to expand trade opportunities,” said Ag Secretary Tom Vilsack.

The U.S. currently is negotiating a trade agreement with the European Union. And agriculture is a key part of those discussions.

“It’s not likely there will be a

trade agreement with the European Union unless we deal comprehensively with ag issues (such as biotechnology),” Vilsack said.

The U.S. also is negotiating a trans-Pacific partnership with 12 countries.

“When those deals are done, the U.S. will have free trade with about two-thirds of the global economy,” Froman said.

But simply signing trade agreements won’t guarantee an influx of sales.

“We know that negotiating an agreement is the first step,” Froman said. “We also must enforce (the terms) of those agreements.”

Froman and Vilsack last month met with leaders of China to discuss corn exports. China in recent months canceled imports of U.S. corn due to a biotechnological trait found in some of the shipments.

The U.S. ag leaders urged Chinese officials to standardize their biotech approval process.

Froman also urged the U.S. ag industry to support trade pro-

motion authority that will “give the (Obama) administration the leverage it needs to negotiate the best possible deals for the U.S.” The forecast for U.S. grain and feed exports last week was boosted $3.2 billion to $31.3 billion.

USDA also raised its soy export forecast last week by $1.8 billion to $21.7 billion due to strong demand from China. The pace of U.S. bean sales to China in the first quarter was 23 percent ahead of the same period a year ago.

U.S. farmers this year could plant record soybean acreage.

Corn acres, meanwhile, could decline, but remain near historical highs.

At its 90th annual Ag Outlook Forum last week in Arlington, Va., USDA predicted farmers this spring will plant a record 79.5 million acres of beans, up 3 million acres from last year, and 92 million acres of corn, down 3.4 million acres from a year ago.

“The soy-to-corn futures price ratio has declined (from about 3-to-1 to 2.5-to-1), but it still favors soybeans,” said Joe Glauber, USDA chief economist. “We expect soy acres to increase.”

If the weather cooperates and farmers plant anywhere close to USDA expectations, crop stocks could increase and prices likely would decline.

“Assuming normal weather (this growing season), we should see further building of stocks,” Glauber said.

“With strong plantings, we could see close to a record crop for soybeans and maybe corn,” he continued. “(If realized), we expect prices to come down.”

USDA projected prices in 2013-14 will average $4.50 per bushel for corn, $12.70 for soybeans and $6.80 for wheat.

Prices for 2014-15 were projected to slip to averages of $3.90 per bushel for corn, $9.65 for beans and $5.30 for wheat.

Corn prices already declined about 35 percent since last fall.

“We expect prices to fall to the lowest levels since 2009-

10,” Glauber said. “It certainly will be a challenge.”

Net cash income for 2014 as a result was estimated at $101.9 billion, Tom Vilsack down nearly 22 percent from last year, but still more than $5 billion above the previous 10-year average.

Key drivers of the lower net cash income estimate include a projected $18 billion decline in corn and soybean receipts. The recently-passed farm bill also eliminated direct payments to farmers, which totaled about $5 billion.

Farmers this year at least could see some relief in input prices. USDA projected farm expenses this year will decline $3.9 billion compared to last year.

USDA also predicted strong crop demand due in part to growing exports and the expectation of more livestock feeding. U.S. ag exports this year are projected to reach a record $142.6 billion.

The overall farm income estimates and rising interest rates also could put the brakes on upward moves in the land market.

“We’ve begun to see an increase in interest rates the last several months, which could lead to some softening of land values,” Glauber added. “We could see cash rents fall if lower prices continue.” — Daniel Grant

USDA predicting record soybean acres

Census About 14 percent of manufacturing and about one out of 12 jobs are connected to agriculture, Vilsack said.

“It’s very important for us to train the next generation,” said Cathy Burns, president of the Produce Marketing Association. “We need to do a better job marketing ourselves.”

Emily Oakley, interim director of the National Young Farmers Coalition, Continued from page 1

said land availability/prices and access to credit are the two toughest challenges for young people who want to farm.

She suggested young people interested in farming learn to save, seek training opportunities, consider starting small and lease or rent farmland to start an operation.

More information about the Ag Census is available at {agcensus.usda.gov}.

GRAINS

Page 5 Monday, February 24, 2014 FarmWeek

GFAI leader: Infrastructure upgrades vital to ag

BY DANIEL GRANT FarmWeek

A record corn crop and third-largest soybean crop harvested last year showed the productive capabilities of U.S. farmers and the ag industry.

The bin-buster harvest also revealed a need to upgrade infrastructure to keep grain flowing across the nation and to other destinations, according to Scott Docherty, newly elected president of the Grain and Feed Association of Illinois (GFAI).

Docherty, who is the general manager of Topflight Grain Cooperative in Monticello, said infrastructure and safety are some of his top priorities this year.

“When you look at (rising) trend yields, it shows we need to continue to update and modern-

ize (grain handling) facilities along with additional capacity,” Docherty told FarmWeek last week at GFAI’s 121st Scott Docherty annual convention and trade show in Springfield.

Infrastructure, from roads and railroads to river locks, also needs to be upgraded to deal with greater demand.

“Our advantage in the world market has been river and rail,” Docherty said.

“We need to continue to focus on that or we will lose ground to competition around the world.”

Last year, intermodal rail traf-

Grain industry deals with moisture issues

Moisture remains an issue for many grain handlers long after farmers harvested the 2013 corn crop.

Archer Daniels Midland (ADM) this month announced plans to tighten grain moisture limits by a half percent for corn shipped on barges to U.S. Gulf Coast export terminals, Reuters news service reported.

Beginning Aug. 1, ADM will discount corn with moisture above 14.5 percent compared to the current threshold of 15 percent that is sold for export.

The move, which was driven by requirements in export contracts from countries such as Japan, could force some grain sellers in the future to choose between paying higher drying bills or finding other outlets to sell their grain.

Industry experts discussed the situation and provided tips to extend the shelf life of corn last week at the Grain and Feed Association of Illinois’ (GFAI) 121st convention and trade show in Springfield.

“There’s no question drier grain has a longer shelf life,” said Roger Dowdy, a retired grain facility manager.

“But the last half percent to dry down is probably the most expensive to get out of that kernel.”

Export requirements are just one challenge the grain and feed industry deals with when it comes to storing grain and keeping it in proper condition.

The biofuels industry and

other users of corn rely on farmers and elevators to deliver crops at specific times throughout the year.

“We’re being asked more and more to hold commodities and scatter deliveries throughout the year,” Dowdy said.

The current corn crop presented various challenges as it produced record bushels that dried slowly last fall.

“It was harvested wetter than average,” said Scott Docherty, general manager of Topflight Grain Cooperative. in Monticello and GFAI president.

Corn moisture last fall averaged close to 17 to 18 percent, about one or two points above average, according to Docherty. A sizable portion of the crop was harvested at moisture readings of 20 percent and above.

Dowdy and Kevin Miles of Rolfes suggested grain handlers can maintain or even extend the shelf life of stored grain by coring bins, installing larger fans, adding roof exhaust fans, converting pull-down aeration to pushup systems, or by using automated aeration systems.

Those and other measures can help. But it also adds to the cost.

There aren’t many options to extend the life of wet grain harvested at 25 percent moisture or greater, though.

That grain will have to be marketed sooner rather than later, the grain industry experts added. — Daniel Grant

fic increased 5.6 percent, while for-hire truck tonnage jumped 3.2 percent, according to Matt Wells, of SpringfieldTom Williamson based Midwest Truckers Association.

“Last year, everyone was struggling to get trucks (to keep combines running at harvest),” Wells said.

“Our guys are trying to increase fleet size,” he continued. “The trade is there.”

The rail industry also added more rail cars.

But the ag industry must deal with greater competition for transportation caused by explosive growth in the domestic

shale oil industry.

“It’s a big deal for our country if we achieve energy independence,” said Tom Matt Wells Williamson, Transportation Consultants Co. of Kansas City.

On the flip side, increased use of rail cars for oil and other petroleum-related products created a “roadblock” in some areas for crop movement, he noted.

Rail car availability and efficient movement on rail is critical to the grain industry. There are more than 480 shuttle train elevators in the U.S., according to Williamson.

Wells predicted the oil fracking industry in Illinois also could affect availability of trucks for agricultural purposes by 2015 or 2016.

There are more truck miles traveled in Illinois than any state in the nation, he noted.

The storage, handling and hauling of larger crops also increases the need for improved safety measures in the grain industry, said Docherty, whose company handles about 34 million bushels of corn, soybeans and wheat each year.

GFAI partnered with the Asmark Institute in Bloomington to provide more safety training.

“We’re focused on prevention versus recovery,” Docherty said. “Training could be a game changer for the industry.”

Beef cow, calf meeting planned in Waterloo

The University of Illinois Extension will host a meeting on research information for cow-calf producers March 12 at the Monroe County Fairgrounds, Waterloo. Preregister by March 6.

Registration will start at 5 p.m., followed by a meal at 5:20 p.m. The program will start at 6 p.m.

Travis Meteer, U of I Extension commercial agriculture educator, will discuss meeting cow nutrient requirements.

Teresa Steckler, U of I Extension beef specialist, will talk about genetic diseases and genome-enhanced expected progeny differences.

The $10 fee will be payable at the door.

To register, call the Monroe County Extension office at 618-939-3434 by March 6.

A meal is not guaranteed for late and onsite registrations. Information is available at {web.extension.illinois.edu/mms}.

Get Ready to Unleash the Potential of Your Soybeans.

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So set a new goal for your yields and make this YOUR year! Take the 2014 Yield Challenge today.

For more details and to register, please visit www.soyyieldchallenge.com or email yieldchallenge@ilsoy.org.

Registration Fee: Only $25 per participant!

We encourage companies to sponsor and work with growers to test new technologies and farming practices!

WHEAT

FarmWeek Page 6 Monday, February 24, 2014

Frozen soils could affect wheat, delay spring planting

BY DANIEL GRANT

FarmWeek Temperatures warmed up last week, but not enough to thaw the heavy band of frost that extends deep into Illinois soils.

Reports around the state suggest the frost in some soil ranges anywhere from 2 to 3plus feet deep, particularly in the northern half of Illinois.

“One thing we could wrestle with this spring is waiting for the soils to warm up,” Jim Angel, state climatologist with the Illinois State Water Survey, told farmers at the Illinois Wheat Forum in Mount Vernon. “It may be a limiting factor to start the growing season.”

The mercury climbed as high as 40 to 50-plus degrees last week. But the outlook into March calls for a return to below-average temperatures.

“It looks like the warming pattern (last week) will be short-lived,” Angel said. “The outlook calls for colder than normal temperatures through

the end of this month and into March.”

The average temperature in the state was below normal each of the last three months.

That trend should continue as the average temperature the first half of February was a bone-chilling 17 degrees below average.

“One of the big problems that could happen is with this deep frost in the ground, and with freezing and thawing this spring, there’s potential for heaving in wheat,” said Steve Stallman, president of the Illinois Wheat Association (IWA). “It could pull roots out of the ground and hurt yields.”

The condition of the dormant Illinois wheat crop earlier this month was pegged at 56 percent good to excellent, 40 percent fair and 4 percent poor or very poor.

Heavy snowfall insulated the crop from some of the frigid temperatures. But wheat that was exposed likely was damaged.

Phil Hartke, center, of Effingham County, discusses wheat production with Paul Bathon, left, and Matt Niedbalski, right, both of Washington County, at the Illinois Wheat Forum in Mount Vernon. The annual event, sponsored by the Illinois Wheat Association, drew a crowd of about 160 people. (Photo by Daniel Grant)

“The cold burned back the green tissue (in some wheat fields),” Stallman said.

“I think wheat that was sowed in a timely manner last fall and had decent tillering and good root establishment probably will be OK coming out of dormancy,” he contin-

Each operation has different inputs.

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ued. “But wheat that was planted late and didn’t get well established may have a tougher time this spring.”

Farmers can compare wheat yields this summer as IWA will host its first statewide wheat yield contest.

Farmers can enter any crop

that was planted with commercial seed in the contest. Cash prizes, ranging from $125 to $500, will be awarded to farmers who achieve top yields.

More information about the Illinois wheat yield contest is available at IWA’s website {illinoiswheat.org}.

Spring weather will play a major role determining disease pressure in wheat.

Fusarium head blight, otherwise known as head scab, often spreads during prolonged periods of high humidity and moderate temperatures and represents the greatest risk to wheat from flowering through kernel development.

Meanwhile, stripe rust, another sometimes problematic disease, doesn’t overwinter in Illinois and instead must hitch a ride on winds from the southern U.S. to make its way up the Mississippi River Valley into the Prairie State.

Wheat growers obviously can’t do anything about the weather conditions but wait and see. However, they can take steps to minimize potential yield loss by using integrated disease management, according to Carl Bradley, University of Illinois Extension plant pathologist.

“We’re worried about (scab) for a couple reasons — yield loss and quality issues,” Bradley said last week at the Illinois Wheat Forum in Mount Vernon.

“Fungicides are helpful,” he continued. “But if you rely only on fungicides, it’s not going to be enough in a year that’s very favorable for scab.”

U of I wheat trials showed fungicides provide about 45 percent control of scab in susceptible varieties.

Farmers therefore should

begin their integrated management approach in the fall by planting wheat varieties that have some resistance to key diseases such as scab and rust.

Fusarium head blight ratings for wheat varieties are available online at {http://vt.cropsci.uiuc.edu}.

Farmers also should monitor the risk level for scab in their area each season prior to crop flowering. A risk model is available at the website {wheatscab.psu.edu}.

If scab is a threat in the spring, farmers should consider using fungicides.

“Once you integrate all the management practices, (farmers) are able to get a 90 percent reduction (of vomitoxin),” he said.

The movement of stripe rust, which is becoming a bigger issue in Illinois as some new strains are better adapted to warmer temperatures, can be monitored online at {www.ars.usda.gov}.

Farmers should consider using fungicide to combat stripe rust if the disease is detected prior to heading. If it’s not present at heading, stripe rust typically doesn’t have significant impact on yields.

“We’re beginning to see (stripe rust) more frequently,” Bradley said. “Timing (of fungicide applications) is critical.”

Farmers also should pay close attention to wheat planted in corn stubble as it is a host for scab spores. — Daniel Grant

Wheat growers advised to use integrated disease management

PRODUCTION

Page 7 Monday, February 24, 2014 FarmWeek

Cover crop options differ in corn/soy/wheat rotation Wheat technically is not a cover crop.

But it provides some of the same benefits, such as increased biodiversity, weed suppression and crop residue as well as reduced soil erosion.

And since Illinois farmers plant wheat in the fall, their options to plant cover crops differ from farmers who plant a common corn/soy rotation.

Robert Bellm, University of Illinois Extension crop educator, last week discussed cover crop options for wheat growers at the Illinois Wheat Forum in Mount Vernon. The annual event was hosted by the Illinois Wheat Association.

“If you use cover crops, know what you want to accomplish to determine the species you will plant,” he said.

Farmers who intend to produce wheat in their rotations should avoid planting cover crops such as annual ryegrass and hairy vetch, according to Bellm.

“The trouble is, both have seed dormancy issues,” he said. “The last thing you want is annual ryegrass or hairy vetch in wheat.”

Cereal rye, on the other hand, fits well into a corn/soybean/wheat rotation when planted after corn.

Wheat growers who plant double-crop beans have “limited cover crop opportunities,” Bellm noted. “Cereal rye fits well into that (rotation).”

Some farmers may have to choose between planting wheat/double-crop beans or cover crops.

Bellm recommended farmers in southern Illinois plant wheat and double-crop beans when the wheat har-

Cow-calf producers and others interested in cattle production can hear the latest research information March 11 at a University of Illinois Extension cow-calf meeting in the Oblong Community Center, Oblong. Preregister

by March 5.

Registration will start at 5 p.m. followed by a meal at 5:20 p.m.

The program will start at 6 p.m.

Dr. Jessica McKinney, a veterinarian with the Effingham Vet Clinic and Newton Vet Clinic, will discuss herd health and tips for calving season.

Travis Meteer, U of I Extension beef specialist, will explore how to meet cow nutrition requirements.

Teresa Steckler, U of I Extension beef specialist, will talk about genetic diseases and genome-enhanced expected progeny differences (EPDs).

The $10 fee is payable at the door. Meals are not guaranteed for late and on-site registrants.

For information or to register, call 217-826-5422 by March 5.

Information also is online at {web.exten-sion.illinois.edu/cce}.

BY DANIEL GRANT FarmWeek

Cow, calf meeting March 11

Illinois products featured at expo

More than 70 Illinois companies will feature their products at the 16th Illinois Products Expo March 1-2 at the Orr Building on the Illinois State Fairgrounds in Springfield.

Illinois Farm Bureau helps sponsor the event. Illinois Specialty Growers Association members will sell and provide samples of popcorn and apple cider slushes.

Visitors can taste free food samples to help make buying decisions. They can also buy wine samples and wine by the glass or bottle in the Illinois Wine Garden.

A few nonfood items, including candles and soaps, will also be available to purchase. Visitors may win Illinois Products gift baskets given as door prizes.

Expo hours are 10 a.m. to 5 p.m. March 1 and 10 a.m. to 3 p.m. March 2.

Vegetable growers reschedule symposium Illinois and Indiana vegetable growers plan to conduct their annual symposium from 8 a.m. to 4 p.m. March 4 at Teibel’s Restaurant in Schererville, Ind. The Illiana Vegetable Growers Symposium was postponed in January due to a snowstorm.

Speakers will include University of Illinois and Purdue University faculty and Extension educators.

Topics include insect management, fertilizer recordkeeping, high tunnels and neonicotinoid insecticides. Advance registrations of $20 are due Friday.

Attendees can register at the door for $25, but they will not be guaranteed lunch.

For more information and to register, visit {ag.purdue.edu/hla/fruitveg/Pages/default .aspx}.

vest is timely and when there is adequate moisture for germination.

The U of I projected returns for wheat/doublecrop beans last year was $188 per acre. This year that combination was estimated to return $127 per acre.

“Wheat and double-crop beans tend to be more prof-

itable (south of Route 16),” he said.

During the 2012 drought, however, some growers benefitted more by planting cover crops as opposed to doublecrop beans.

So when should wheat growers consider cover crops as opposed to double-crop beans?

Forage from cover crops

may be more valuable than wheat/double-crop beans on livestock farms. Cover crops also could be more beneficial in fields where herbicideresistant weeds are an issue, when conditions make it difficult to establish doublecrop beans and in fields where farmers want to improve soil quality.

Crop insurance, economic outlook headline six Farmdoc webinars Six new Farmdoc online webinars have been scheduled by the University of Illinois to inform farmers about a variety of topics.

Beginning Thursday, the live events allow participants to ask specific questions of the presenter. Each webinar will be limited to one hour. The format will include about 30 minutes of presentation and 30 minutes for questions.

Webinars include: • 8 a.m. Thursday; crop insurance 2014; Gary Schnitkey, U of I Agricultural, Consumer and Environmental Sciences (ACES) professor.

• 8 a.m. March 5; understanding the Price Loss Coverage and Agriculture Risk Coverage programs in the 2014 farm bill; Jonathan Coppess, ACES clinical assistant professor.

• 8 a.m. March 12; SCO and crop insurance; Nick Paulson, ACES associate professor.

• 8 a.m. March 19; crop economic outlook; Gary Schnitkey, ACES professor.

• 8 a.m. March 26; introduction and strategic implementation of the Dairy Producer Margin Protection Program; John Newton, ACES assistant professor.

• 2 p.m. March 31; implications of USDA’s March 1 Grain Stocks and Prospective Plantings reports; Darrel Good, ACES professor emeritus, and Scott Irwin, ACES professor.

All of the webinars are free, but registration is required.

To register, visit {farmdoc.illinois.edu/webinars}. Follow the instructions on each particular webinar event “Details” page.

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 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?

www w.fssystem.com

TM

©2013 GROWMARK, Inc. A14141

WEATHER

FarmWeek Page 8 Monday, February 24, 2014

Tornadoes and flooding hit parts of Illinois

Hogs mill Friday at a collapsed Pike County livestock facility near Detroit. About 90 percent of the Parks Livestock 37,000-square-foot facility collapsed after storms raked the county. No people or animals were injured, according to reports. (Photo by Blake Roderick, Pike County Farm Bureau manager)

BY KAY SHIPMAN FarmWeek

Mother Nature threw everything she had at Illinois last Thursday. Tornadoes, gusting wind, heavy rain, hail, sleet, fog, snow — the weather gamut.

Weather reports were widespread and diverse across Illinois, making general summaries difficult. As of 2:15 p.m. Friday, COUNTRY Financial had received 899 property storm

FarmWeekNow.com

Visit FarmWeekNow.com to view our photo gallery of storm damage across Illinois.

claims in Illinois as a result of Thursday’s storms.

The weather blast didn’t ease Friday morning as northwest Illinois dealt with blowing, drifting snow and whiteout conditions.

“We have reports of tornado damage in four counties,” Patti

Thompson, spokesman for the Illinois Emergency Management Agency, told FarmWeek. Those counties were Christian, Effingham, Sangamon and Morgan, she said. Damage also was reported in Pike County. Rural areas suffered most of the tornado and wind damage, which Thompson reported was insured.

Central Illinois particularly suffered. Near Mechanicsburg in Sangamon County, a tornado

Snow clumps cling to crop residue in a field near Roanoke in Woodford County. Warmer temperatures last week caused significant melting and flooding across the state. (Photo by Ken Kashian)

damaged the farm of Sangamon County Farm Bureau member David Mendenhall. A shed used for seed storage was blown away and several power poles were snapped. Grain bins and a residence on the farmstead also were damaged.

The day brought extensive flooding with as much as a foot of water covering roads in multiple counties, including Knox, Piatt, Tazewell and Shelby, according to reports from the National Oceanic and Atmospheric Administration.

“Most of the claims at this point have been due to wind damage and are of light to medium severity,” said Chris Stroisch, spokesperson for COUNTRY. “We expect the number of reported claims to increase over the weekend.”

By Friday morning, COUNTRY offices with the most reported claims were: Springfield/Raymond, Bloomington, Edwardsville and Belleville.

Fifty-one bulls sold for $195,850 at the Illinois Performance Tested Bull Sale last week in Springfield. That compares to a sale total of $191,750 last year.

An Angus bull owned by Hobbs Angus of Fairview brought the highest bid at $9,000. On average, bulls sold for $3,840 compared to an average price of $2,862 last year.

Tom Saxe, bull sale clerk, told the RFD Radio Network®

that bull numbers at the sale were the lowest in several years.

In 1995, for example, 154 bulls sold.

Saxe noted performance tested bulls are elite in terms of their qualifications for the sale, including expected progeny difference data. Cattle numbers have declined across the nation this year, he added. And some Illinois beef producers hold their own production sales, Saxe said.

Deana Stroisch contributed to this story.

Bulls sell for $3,840 average

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FROM THE COUNTIES

Page 9 Monday, February 24, 2014 FarmWeek

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DAMS — Farm Bureau will host a 100th anniversary dinner and recognition program at 6 p.m.

March 6 at the Oakley Lindsay Center in Quincy. Max Armstrong will speak. Cost is $20.

Call the Farm Bureau office at 222-7305 or email acfb@adams.net for reservations or more information.

• Farm Bureau will sponsor a Viewpoint luncheon at 10:30 a.m. Friday at Sprout’s Inn, Quincy. Matt Courtney, Great River Firearms Training, will discuss Illinois’ concealed carry law. Sen. John Sullivan, DRushville, and Rep. Jil Tracy, D-Quincy, will provide a legislative update. Call the Farm Bureau office at 222-7305 for reservations.

UREAU — The Women’s Committee will host a teacher appreciation dinner and training seminar 4 to 6 p.m. Wednesday at the Farm Bureau Building. Call the Farm Bureau office at 8756468 if interested in attending.

• Farm Bureau will co-sponsor a lady landowner informational seminar at 10 a.m.

March 14 at the Farm Bureau building. Timothy Harris, Capital Ag Property Services, and Gary Schnitkey, University of Illinois Extension, will speak.

Call the Farm Bureau office at 440-8737 for reservations by March 7.

HRISTIAN — Applications for the Young Ag Leader Scholarship are available at {christiancofb.com}.

Application deadline is March 28.

• Farm Bureau will host a sesquicentennial/centennial farm designation application workshop from 8:30 a.m. to noon March 22 at the Farm Bureau office. Call the Farm Bureau office at 824-2940 for more information or to register by March 20.

LINTON — Farm Bureau will host a legislative breakfast at 7 a.m.

March 3 at the Farm Bureau office. Rep. John Cavaletto, RSalem, Rep. Charles Meier, ROkawville, and Sen. Kyle McCarter, R-Lebanon, will speak. Contact Gary Kennedy for more information.

OLES — Foundation scholarship applications are available at colescfb@consolidated.net or by calling the Farm Bureau office at 3453276. Application deadline is March 15.

• Farm Bureau will host a blood drive from 10 a.m. to 3 p.m. Saturday at Community Blood Services of Illinois in the Cross County Mall. Call 367-2202 or visit {bloodcenterimpact.org} to schedule an appointment.

• Farm Bureau will host a Farm Mall Show Friday to

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Sunday at the Cross County Mall. The Young Leader tractor pull will be at noon on Saturday.

OUGLAS — Farm Bureau will co-sponsor a crop seminar from 9 a.m. to 3 p.m. March 7 at the Arthur Community Center. Doug Yoder and Kevin Rund, Illinois Farm Bureau, Gary Schnitkey, University of Illinois Extension, and Jim Angel, Illinois State Water Survey, will speak.

Call the Farm Bureau office at 253-4442 to register by Friday.

UPAGE — Farm Bureau will host an agricultural education expo March 12-13 at the DuPage County Fairgrounds for third and fourth grade students.

• Foundation scholarships are available for graduating high school seniors who plan to pursue a degree in an ag related field of study. Contact the Farm Bureau office at 6688161 for more information.

DWARDS — Young Leader scholarship applications are available at the Farm Bureau office. Application deadline is March 3.

• Foundation scholarship applications are available at the Farm Bureau office. Application deadline is April 1.

ULTON — Ag Literacy Committee members will host a fundraising dinner from 4 to 7 p.m. Friday at the Farm Bureau building. Tickets are available at the door. Proceeds will benefit the Ag Literacy Program. Call the Farm Bureau office at 547-3011 for more information.

ENRY — Farm Bureau will co-sponsor a grain handling safety training for grain elevator employees, farmers, farm employees and commercial operators from 8 a.m. to noon or 1 to 5 p.m. Tuesday at the Black Hawk College Community Education Center. Call the Farm Bureau office at 9372411 to register.

• Farm Bureau will sponsor a market outlook seminar at 6:15 p.m. March 4 at the Lavender Crest Winery, Colona. Elwynn Taylor, Iowa State University, will speak.

Cost is $20 if registered by Feb. 25. Cost is $30 after the deadline. Call the Farm Bureau office at 937-2411 to register.

• Foundation scholarship applications are available by visiting {henrycofarmbureau.org} or by emailing kbhcfb@theinter.com. Application deadline is March 7.

ERSEY — The Marketing Committee will host a market outlook meeting at 6 p.m. March 6 at the Jerseyville Peace Church. Dale Durchholz, AgriVisor, will speak.

Cost is $10. Tickets may be purchased at the Farm Bureau

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office. Deadline to purchase tickets is Friday.

OHNSON — Farm Bureau will sponsor a crop insurance program from 4 to 6 p.m. March 4 at the Shawnee Community College Ullin Campus. Doug Yoder, IFB, will speak. Call the Farm Bureau office at 658-2871 for reservations by Friday.

• Farm Bureau will sponsor an on-the-road truck seminar from 6:30 to 8:30 p.m. March 4 at the Shawnee Community College Ullin Campus. Kevin Rund, IFB, will speak. Call the Farm Bureau office at 6582871 for reservations.

ANKAKEE — Farm Bureau’s annual meeting will be at 5:30 p.m.

March 3 at the Kankakee Elks Country Club, St. Anne.

Rich Guebert Jr., IFB president, will speak. Cost is $15 for members and $30 for nonmembers. Call the Farm Bureau office at 932-7471 to register by Wednesday.

EE — Farm Bureau will sponsor an understanding the 2014 farm bill seminar at 9 a.m. March 4 at the Farm Bureau building. Brian Freise, AgPerspective Inc., will speak. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net for reservations by Monday.

• The Public Relations Committee will sponsor the farmer’s share breakfast from 8 to 11 a.m. March 8 at the Loveland Community Building in Dixon. Cost is 50 cents. Call the Farm Bureau office at 8573531 or email leecfb@comcast.net for more information.

ARION — Farm Bureau will co-host a wellness seminar from 7 to 9 a.m. March 5 at the Farm Bureau office. Members will receive a discount on blood testing. Call the Farm Bureau office at 548-2100 to register

by Wednesday.

ASSAC — Farm Bureau will sponsor a crop insurance program from 4 to 6 p.m. March 4 at the Shawnee Community College Ullin Campus. Doug Yoder, IFB, will speak. Call the Farm Bureau office at 524-5811 for reservations by Friday.

• Farm Bureau will sponsor an on-the-road truck seminar from 6:30 to 8:30 p.m. March 4 at the Shawnee Community College Ullin Campus. Kevin Rund, IFB, will speak. Call the Farm Bureau office at 5245811 for reservations.

ERCER — Farm Bureau will sponsor a Women in Ag conference at 8 a.m. March 21 at Jumer’s Hotel and Casino, Rock Island. Ron Hanson, University of Nebraska, will speak. For more information visit {womeninagricultureconference.com} or call

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the Farm Bureau office at 5825116.

• Farm Bureau will sponsor a marketing workshop from 9 a.m. to 3 p.m. March 22 at Jumer’s Hotel and Casino, Rock Island. Naomi Blohm, Stewart-Peterson, will speak.

Cost is $40. Visit {mercercfb.org/news} to register by March 7. Call the Farm Bureau office at 582-5116 for more information.

ONROE — Farm Bureau’s annual meeting will be held at 6:30 p.m.

March 8 at the Columbia American Legion. Reservation deadline is Friday.

ONTGOMERY — Prime Timers will sponsor 2014 trips: March 15, Alton Little Theatre and dinner at Castelli’s Moonlight Restaurant; May 1, Warm Springs (Clydesdale) Ranch and Crane’s Country Store; Aug. 5, Fairmount Park Horse Racing; Oct. 18, Hannibal, Mo., fall festival and river cruise. Call Pegasus Travel at 800-228-6906 for reservations or more information.

OULTRIE — Farm Bureau will cosponsor a crop seminar from 9 a.m. to 3 p.m. March 7 at the Arthur Community Center. Doug Yoder and Kevin Rund, IFB, Gary Schnitkey, University of Illinois Extension, and Jim Angel, Illinois State Water Survey, will speak. Call the Farm Bureau office at 7282533 to register by Friday.

EORIA — Farm Bureau will sponsor a marketing seminar at 8 a.m.

Tuesday at the Exposition Gardens in Peoria. John Roach, agribusiness consultant, will speak. Call the Farm Bureau office at 686-7070 for reservations by Monday.

• Farm Bureau will host a long term care and Social Security planning seminar at 11 a.m. March 11 at Gil’s Supper Club in Hanna City. Rick Morgan, COUNTRY Financial, will speak. Call Betty Marlin, COUNTRY Financial, at 686-7050 for reservations by March 6.

ULASKI-ALEXANDER — Farm Bureau will sponsor a crop insurance program from 4 to 6 p.m.

March 4 at the Shawnee Community College Ullin Campus.

Doug Yoder, IFB, will speak.

Call the Farm Bureau office at 745-9429 for reservations by Friday.

• Farm Bureau will sponsor an on-the-road truck seminar from 6:30 to 8:30 p.m. March 4 at the Shawnee Community College Ullin Campus. Kevin Rund, IFB, will speak. Call the Farm Bureau office at 7459429 for reservations.

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NION — Farm Bureau will co-sponsor an on-the-road truck seminar at 8 a.m. March 4 at the Farm Bureau office. Kevin Rund, IFB, will speak. Call the Farm Bureau office at 833-2125 for reservations by Friday.

• Farm Bureau will host a youth show animal program at 6:30 p.m. March 6 at the Farm Bureau office. Kevin Kapelski and Bob Michaud from Land O’ Lakes Feed will speak. Call the Farm Bureau office at 8332125 to register by Friday.

• Farm Bureau will sponsor a crop insurance program from 4 to 6 p.m. March 4 at the Shawnee Community College Ullin Campus. Doug Yoder, IFB, will speak. Call the Farm Bureau office at 833-2125 for reservations by Friday.

• Farm Bureau will sponsor an on-the-road truck seminar from 6:30 to 8:30 p.m. March 4 at the Shawnee Community College Ullin Campus. Kevin Rund, IFB, will speak. Call the Farm Bureau office at 8332125 for reservations.

ERMILION — Farm Bureau will celebrate Illinois Farming Month by bagging groceries and discussing farming and food issues with consumers from 10 a.m. to noon March 6 at Danville and Tilton County Market stores.

AYNE — Farm Bureau’s annual meeting will be at 6 p.m. March 14 at the Cumberland Presbyterian Church, Fairfield. Call the Farm Bureau office at 8423342 for reservations by March 7.

• Young Leader Committee members will collect nonperishable food donations at the March 14 annual meeting for Harvest for All. HITESIDE — Foundation summer internship applications are available at the Farm Bureau office. Graduating high school seniors and current college students are eligible to apply.

The internship program will focus on Ag in the Classroom educational activities. Call Matt Lillpop at 772-2165 or email matt.wcfb@frontiernet.net to request an application or for more information. Deadline to apply is Friday.

ILLIAMSON — Farm Bureau will sponsor an on-the-road truck seminar at 6 p.m. March 3 in the Southern FS board room.

Kevin Rund, IFB, will speak.

Call the Farm Bureau office at 993-2609 to register by Friday.

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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity that is open to all members, contact your county Farm Bureau manager.

‘What’s keeping you up at night?’

PROFITABILITY

FarmWeek Page 10 Monday, February 24, 2014

Many times business people ask each other, “What’s keeping you up at night?” Normally they aren’t looking for the answer to be my 2-year-old son, my new puppy or sleep apnea. People are interested in understanding key issues at the top of peoples’ minds so they can compare notes and make sure they aren’t missing something important.

So, in that spirit, here are some things we see as issues that you should be aware of and prepare for so they don’t keep you up at night.

The first is the ability to identify a palmer amaranth plant at emergence versus waterhemp or red root pigweed.

Palmer amaranth is a new foe in weed

BY LANCE RUPPERT

control that presents unprecedented challenges. Its growth rate, its resistance to many chemistries, its ability to produce literally millions of seeds per plant and the sheer size of the plant will make it a challenge to control as it spreads across the state. Many weed scientists say that if you don’t kill it before it reaches 2 inches tall, you won’t be able to at all.

Another issue is the need to understand and accept that your fertility program is going to change. Almost daily we hear of another state or the Environmental Protection Agency (EPA) talking about or enacting legislation to protect fresh water and minimize fertilizer’s effect. Understanding what sources of fertilizer, if it has stabilizers

with it, when, how much and how often it is applied will be important things for you to know. Also remember to document and plan for the future.

Watch for articles on this subject in farm Lance Ruppert magazines and newspapers. Try to educate yourself on what is happening, how it will affect you and what you can do to help the agriculture industry in general.

Finally, and perhaps most importantly, is end user traceability. The new farm bill contains requirements for meat products to have traceability informa-

tion on the label. Consumers want to understand what they are eating, where it came from and if it was grown in a sustainable and consumer-friendly way.

The ability to track and document the life of food products will become the norm very soon. Do you have the ability today to show what was planted, applied and harvested on every acre or for every animal? Prepare yourself to be ready to meet this requirement.

Big issues require many people to join together to help solve them. Identify key issues and start building a team to help you conquer them in the future.

Lance Ruppert is GROWMARK’s agronomy marketing and IMP manager. His email address is lruppert@growmark.com.

Exports contribute to U.S. propane shortage west from Canada.

“We were really caught off guard by the heavy crop drying (demand),” Jackie McKinnis, GROWMARK senior energy analyst, said last week at the Grain and Feed Association of Illinois’ annual convention and trade show. “This year set new records.”

Propane withdrawals during a one week period in November totaled more than 2 million barrels, the largest weekly draw since 1993.

Meanwhile, the U.S. in 2010 started exporting propane when large supplies

BY DANIEL GRANT FarmWeek

A bustling export market contributed to the current propane shortage in the U.S. But it was a perfect storm of factors that ultimately drained stocks and drove prices to highs above $5 per gallon last month.

The main culprits behind the price spike included a record draw of propane for crop drying last fall, brutally cold winter temperatures and pipeline maintenance in December that limited propane supplies into the Mid-

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) $39.43-$89.58 $56.28 40 lbs. (cash) $95.00-$116.50 $108.26 Recipts

This Week 51,847 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 68,442

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $88.20 $81.32 $6.88 $65.27 $60.18 $5.09

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

This week NA $142.00

Prev. week $141.98 $142.00

Change NA $0.00

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 $170.77 $171.58 - $0.81

Lamb prices NA

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 2/13/2014 54.0 9.8 32.6 2/06/2014 57.6 16.8 27.4 Last year 40.8 23.8 9.7 Season total 1270.3 837.5 634.8 Previous season total 1077.7 646.8 336.5 USDA projected total 1495 1125 1450 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

and dwindling demand deflated domestic prices. U.S. propane sales from 2009 to 2012 declined 17 percent due in part to mild winters, McKinnis said.

“We had (propane) production increasing faster than demand (prior to 2013),” McKinnis said. “No wonder (U.S. propane producers) started exporting it.”

U.S. propane exports increased from 171,000 barrels per day in 2012 to 292,000 barrels per day last year. Exports

remained strong until recent months.

“Supplies got extremely tight and logistics were horrible,” McKinnis said. “But the market worked. It did slow down exports.”

In fact, prices jumped high enough last month that some propane shipped to Europe was re-exported back to the U.S. East Coast.

Some lawmakers in recent weeks called for an investigation into the price spike of propane and other heating

fuels. But it could be hard to make a case that doesn’t involve Old Man Winter as the key driver of the price spike.

“I believe the system worked the way it should have,” McKinnis said.

McKinnis predicted propane prices will moderate from the recent highs as supplies increase and heating use declines due to warmer temperatures.

But supplies likely will remain tight, and prices as a result could be firm into summer.

Farmland report due out in March

Farmland prices in recent months remained firm despite a significant drop in crop prices since harvest.

And that trend could continue, according to Bruce Huber, past president of the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA), who works for Hickory Point Bank Ag Services in Decatur.

Huber this month discussed the farmland market during the ISPFMRA annual conference in Decatur. ISPFMRA on March 20 will provide more insight into recent trends with the release of its annual statewide farmland values and lease trends report.

“The trend is leveling out and short term I think we’re due for a correction (in land prices),” Huber told FarmWeek. “But the long-term outlook for farmland is bullish.”

Illinois farmland values have been on an uptrend since 2001 and increased 66 percent in the last four years. But Dale Aupperle, president of Heartland Ag in Forsyth, agreed the market this year will experience a correction.

“All markets experience cycles and corrections are a healthy part of that process,” Aupperle said.

“The sharp decline in commodity prices is reverberating throughout Illinois agriculture and caused an end to the 12-year uptrend in land values.”

Aupperle is the general chairman of ISPFMRA’s Illinois Land Values Conference that will be held March 20 in Bloomington.

The theme of this year’s event is “What’s Next for Farmland in the Midwest.” More information about the conference, including the release of the annual report, is available online at {ispfmra.org}.

Farmland prices could slip from last year’s peak

due to a drop in net farm income. USDA this month projected net farm income this year will decline 26.6 percent from 2013.

The projection for 2014 net farm income ($95.8 billion), if realized, would be the lowest since 2010, but would still be $8 billion above the previous 10-year average.

Farmers, however, remain active bidders at farm auctions due to one of the strongest threeyear financial runs in recent history.

The debt-to-asset ratio on U.S. farms dropped to a historically low 10.3 percent at the end of 2013 compared to 10.7 percent the previous year.

“I think land prices will hang in there and rents will remain strong,” Huber said.

However, some of the highest cash rental rates in the state could be pressured if crop prices continue to decline.

“If we can stay anywhere near $5 (per bushel for corn), I think we can sustain rents,” Huber added. “If (the corn price) drops below $4, it’s not possible to maintain some rents at current levels.” — Daniel Grant

PROFITABILITY

Page 11 Monday, February 24, 2014 FarmWeek

CASH STRATEGIST

Corn Strategy

ü2013 crop: Corn prices pushed through the first layer of resistance last week, suggesting more near-term strength is still on the horizon. Still, we’d use current strength for catchup sales. Plan to add to sales if May futures reach $4.70. Check the Hotline for updates. ü2014 crop: December corn futures are closing in on our $4.75 to $5 target zone to make sales. Check the Hotline more frequently; we could initiate sales at any time. vFundamentals: The escalating political turmoil in Ukraine may boost demand for U.S. corn even more than it already has. It is increasing the uncertainty about the ability to continue sourcing needs from that country this spring. Weather in eastern parts of Brazil is forecast to turn warmer and drier again, which could diminish the size of their corn crop, the second-crop corn in particular. Both could shift more of the world demand to the U.S., bolstering export demand in the second part of our marketing year.

Cents per bu.

Soybean Strategy

Soy exports continue to be scrutinized

The trade is watching soybean exports most closely of all, especially shipments. They are well ahead of the projected pace, but they were last year, too.

The key is how the pace unfolds going forward. A year ago, when soybean export shipments changed, they quickly dropped to near nothing with the cumulative pace virtually flattening out. This year, with Brazilian shipments

ramping up about one month ahead of last year, our exports could be at a similar point.

And if our shipments follow last year’s line from this point forward, they could eventually fall back to the projected pace, maybe even slightly under.

Corn exports are good even though they are lagging the projected pace. But everyone has been expecting this year’s exports to be “back end loaded,” and it looks like they are going to live up to that billing. The trend of shipments is not only stronger than the five-year average, but more importantly, the projected pace.

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ü2013 crop: Even with the potential for the Brazilian harvest falling slightly, there’s still more downside risk than upside potential. We still recommend you wrap up old-crop sales. ü2014 crop: Even though the USDA acreage forecast was less than the trade has been using, it’s still large enough to allow stocks to rise. Prices have moved into our target zone for making sales. Get sales to recommended levels now. vFundamentals: Weather may have taken the edge off the Brazilian crop, but it’s still going to be 4 to 5 million metric tons (mmt) larger than last year’s record. The yield is still expected to be a little better than average. Exports are ramping up as fast as harvest with February shipments to date a little over 2 mmt. Last February’s shipments were less than 1 mmt. The Argentine government is said to be considering a requirement for producers to register grain inventories. Producers fear the government might tax them

on the inventories to raise tax revenue.

Wheat Strategy

ü2013 crop: Nearby Chicago wheat futures made their way above the $6 mark and posted gains for the third straight week.

The March Kansas City wheat contract approached $7. Make catch-up sales on rallies that take Chicago wheat above $6.25. ü2014 crop: Weather concerns have not yet subsided and there remains a worry that the last frost in Illinois will come unseasonably late. Drought in the Plains region has hurt winter

wheat conditions and new-crop futures benefited from the support. Watch for $6.50 to make new sales.

vFundamentals: The fund trade continues to cover a large net short position, but substantial world supplies keep managed money bearish. Projections out of the USDA Ag Forum have ending stocks at a slightly more comfortable 587 million bushels. Exports fell last week, but total sales have accumulated to 87 percent of the projected total with 15 weeks left in the crop year.

PERSPECTIVES

FarmWeek Page 12 Monday, February 24, 2014

Member involvement key to IFB policy development

In the coming weeks, Illinois Farm Bureau will once again begin the annual policy development process, most commonly referred to as Resolutions, to identify issues most important to our members.

While the process is well defined, the importance of member input is the key to making the whole process work.

County Farm Bureau presidents serve on the Resolutions Committee and represent each of the 18 Districts of Illinois Farm Bureau. We also have a Young Leader representative, a representative from the Action DAVID Teams and three IFB directors ERICKSON who serve on the committee, as well as four county Farm Bureau managers who attend as observers of this most important process.

The Resolutions Committee receives input from county Farm Bureaus and members about issues of importance or changes that may need to be made in current policy statements.

We meet four times annually beginning in late February to receive, review, edit and discuss potential policy resolutions that may ultimately guide IFB for the next year.

Policy Resolutions are presented in a tentative final form to the delegates at the IFB Annual Meeting for discussion and final approval.

To observe the procedure and thoughtful consideration by the delegates is truly inspirational for our organization.

Delegates discuss, debate and even disagree, but ultimately adopt a set of policy resolutions that guide and direct the actions of IFB for the next year.

There are very few organizations with such a well-defined and fully integrated process for policy development. As an organization, we take great pride in the resolutions process and know that our members truly have an impact in guiding IFB. The resolutions process continues to work because members remain involved. Members present ideas to their county Farm Bureau or sometimes directly to the Illinois Farm Bureau for consideration for policy development.

This aspect of member involvement is a great way to engage members in the working of our organization. If members do not remain

Reader questions carbon emissions

involved, then the organization lacks the ongoing active influence of current issues that affect our members, their families and their farming business.

I encourage you to become involved in the process so you can influence the work of IFB. Your involvement can be as easy as writing a letter to the editor of FarmWeek that highlights an issue or concern you have which should be considered for IFB policy development.

No need to worry about writing an editorial opinion. Just write about an issue that interests you.

Think about how this issue might also affect other Farm Bureau members and help identify possible actions or maybe even a solution.

Based on FarmWeek letter policy, your letter must be limited to 300 words, must not be any kind of political endorsement, and must include your address and signature. Please include your phone number for contact purposes by FarmWeek staff, but it will not be used in print.

Please send your letters on policy proposals to: FarmWeek Letters, 1701 Towanda Ave., Bloomington, Ill., 61701.

Thanks for your involvement with Illinois Farm Bureau!

David Erickson of Altona is vice president of the Illinois Farm Bureau and chairs the Resolutions Committee.

LETTER TO THE EDITOR

Editor: N. Duane Noland’s message in the Feb. 10 FarmWeek about the future of energy in this country was informative and thought provoking. I would like to add one thing to what he wrote.

He mentioned the Environmental Protection Agency’s stringent limit on carbon emissions. A piece of coal contains carbon, but it doesn’t fly off and get into the atmosphere when you burn the coal. Instead, it creates carbon dioxide.

What’s so bad about that? All growing plants need and utilize carbon dioxide. The volume of crops is increasing. Once upon

a time, corn populations were 20,000 to 25,000. Now 40,000 and more is normal; some are going to 50,000 and more.

These growing crops and an endless supply of trees consume an enormous amount of carbon dioxide.

The encyclopedia says plants absorb carbon dioxide from the air, and by a series of reactions, produce carbohydrates and oxygen. Animals, which include us, take in the oxygen and carbohydrates.

It seems we are still following the pattern of nature that has been ongoing since the beginning of time. Nowhere in the encyclopedia does it state anything about a balance between oxygen and carbon

dioxide nor does it say that more of one than the other is serious.

Also, it has been said the excess carbon dioxide we are accused of producing is trapping heat so it cannot escape into the atmosphere. Why, then, would it not also stop the sun’s heat from reaching the earth?

Could it be that we are concerned and panicking about burning coal and other fossil fuels with no scientific proof that it is serious or negative?

After all, opinion is not scientific proof, and opinions and unfounded fears are all we have thus far.

DON ELLINGSON Poplar Grove

Can benefits of farm-level data outweigh the costs?

There’s been a lot of buzz about “big data” recently in both urban areas and in the countryside.

Big data has always surrounded us in varied shapes and forms, but many times we don’t realize it.

How many times do we turn to Google or ask our smartphones for answers or even directions to a desired location? How often do we connect with family and friends through social media platforms such as Facebook or Twitter? How much of your Christmas MATTHEW shopping did ERICKSON you do online last year?

Every time we connect digitally, data is generated, collected, and on an everincreasing basis, analyzed to help achieve our desired outcomes.

Even though most of us think that typing a question on an Internet search engine is free, the reality is that these simple questions provide valuable data to a company or a provider that uses the information to make products or services better and more efficient.

Aggregating data can help analysts, scientists and economists tailor products, refine research objectives, answer key research questions and foster innovation beyond the societal and technological norms of today.

The agriculture industry has been front and center on the topic of big data for years. Technology has improved to the point that during the 2012 and 2013 crop years, several seed, fertilizer and equipment companies worked with farmers to monitor and collect farm data on variables such as number of plants in a given area, seed hybrids, soil topography, fertilizer usage and crop yield data on a sitespecific basis. In some cases, these sites were only a few square yards.

These variables generate data and are just a pile of numbers comprised of zero through nine, but when analyzed and interpreted correctly, the information can provide a great benefit to the farmer and the company providing the service.

However, the situation is more complex than inter-

preting a pile of numbers.

What value does farm-level data have? What value do we place on privacy?

Assessing the payback value of each farm’s data generated from precision technologies will vary from farm to farm.

But the company analyzing the data will almost always charge the farmer a fee for that analysis. The company usually counts on a positive return as the analysis of the data will strengthen its predictive analytic capabilities, strategic benchmarking and help solidify advantages in marketing.

Farmers already using precision technologies may see a productivity gain by providing data and then gaining access to a company’s analytical supports.

This support may help maximize output while reducing inputs such as seeds and fertilizer on specific pieces of crop ground. But the output generated from the services provided by the company does not necessarily guarantee the farmer will see an increase in overall farm output from year to year.

From the company’s end, the guarantee is solidified by the farmer giving the company the data and paying a service cost. Should this degree of guarantee be considered when determining the fair value of big data, or is this just an associated risk carried by the farmer?

The use of data through precision technologies has the potential to revolutionize the agricultural industry by making farmers better at producing food.

However, farmers need to be cognizant of the potential pitfalls, especially the possibility that their private farmlevel data might not remain so private.

The question should not only be whether farmers are ready to give up the privacy of their individual farm data.

Those days are long gone.

The real question for farmers is: Do the short- and long-term benefits of giving farm-level data to another entity outweigh the costs associated with the possibility that the farm-level data would be released or misused by others?

Matthew Erickson is an economist at the American Farm Bureau Federation.