Farmweek february 2, 2015 by Illinois Farm Bureau

Young Leaders stand poised to become a more dominant force in agriculture’s future. page 3-4

Grain rail and barge movement posts marked improvements in efficiency and on-time delivery. page 6

South American farmers, thanks to good weather, could harvest a record soybean crop. page 8

Senators seek end to Cuba travel ban Monday, February 2, 2015

BY DEANA STROISCH FarmWeek

A bipartisan group of U.S. senators, including Illinois’ Dick Durbin, introduced legislation last week to end the ban on American travel to Cuba. The Freedom to Travel to Cuba Act of 2015 would take President Barack Obama’s executive actions to normalize relations with Cuba a bit further. But it doesn’t address the trade embargo, which Obama urged Congress to pursue in his recent State of the Union Address. Sen. Jeff Flake, R-Ariz., explained “there’s overwhelming support” to end the travel ban, while the trade embargo remains controversial.

Two sections Volume 43, No. 5

Proposed legislation doesn’t address trade embargo Flake said lifting the travel ban would be “good for the Cuban people and also good for Americans.” Durbin, D-Springfield, recently returned from a congressional trip to Cuba. He agreed it’s “time for a new policy.” “This is the only country in the world where we have these restrictions on Americans,” he said. “Let’s give our people a chance to travel, and they will not only bring money to spend, they’re going to bring new ideas, new values and real change to Cuba.” Tamara Nelsen, senior direc-

tor of commodities at Illinois Farm Bureau, agreed. “Our farmers have always believed that engagement with people in other countries is the best way to encourage positive change and promote future trade with those nations,” she said. Obama’s plan to re-establish diplomatic relations with Cuba — the first change in policy since 1961 — calls for opening an embassy in Havana in the coming months, easing travel and financial restrictions, and reviewing Cuba’s designation as a “state sponsor of terrorism.” Flake said while many can

freely travel to Cuba under Obama’s new regulations, “we just believe those restrictions ought to go completely.” In addition to Durbin and Flake, Senate bill sponsors include: John Boozman, RArk.; Mike Enzi, R-Wyo.; Patrick Leahy, D-Vt.; Jerry Moran, R-Kan.; Tom Udall, DN.M.; and Sheldon Whitehouse, D-R.I. A companion bill could be filed in the House this week. Illinois Farm Bureau policy supports “resumption of normal trading relations with Cuba,” including elimination of restrictions on U.S. citizens

traveling to Cuba and simplifications of licensing and shipping requirements for sales to Cuba. Mark Albertson, director of strategic market development for the Illinois Soybean Association, said increased travel and tourism in Cuba directly impacts imported agricultural products. “Everyone is trying to predict the long-term market potential for U.S. ag products in Cuba,” Albertson said. “It’s like living in the 1970s and trying to predict the long-term potential for Apple stock. No one knows how high this can go, but everyone agrees that travel and tourism is an important part of the equation.”

SWAT members ‘dive deep’ into 2015 issues BY KAY SHIPMAN FarmWeek

Periodicals: Time Valued

Illinois Farm Bureau’s issue army received an assignment to take action, become informed and “dive deep” into issues from IFB President Richard Guebert Jr. last week. “There’s never a lack of issues. They pop up all over the place. We’ve got our work cut out for us,” Guebert said. “Dive into issues that are important on your respective committees.” All members of IFB’s three Strength With Advisory Teams (SWAT) convened before working on

their respective specialties. The president mentioned animal care as an example of a SWAT issue. He suggested members might become informed about animal care issues and discuss those with legislators. Each of three SWAT advisory teams is comprised of Farm Bureau members, an IFB board member and a county Farm Bureau manager who serves in an advisory capacity. Team members serve two-year terms. The three teams are: Farming Production and Marketing, Local and State Government, and Conservation and Natural Resources. Earlier this year, team members were surveyed for issues related to their committee and discussed those topics during their first meeting last week. Now entering its third year, the SWAT program has assisted with policy development that advanced from the state to the national level. Adam Nielsen, IFB director of national legislation and policy, noted 2013 SWAT members surfaced information about propriety data, now commonly referred to as big data. Those ideas dovetailed into policy approved by IFB delegates and helped form American Farm Bureau Federation (AFBF) policy. “That (policy) started here with SWAT,”

Cass-Morgan County Farm Bureau member Jon Freeman, left, discusses issues with fellow Illinois Farm Bureau Strength with Advisory Team (SWAT) members Ken Beck, center, LaSalle County Farm Bureau, and Jersey County Farm Bureau President Dan Schetter. The three SWAT committees discussed issues and plans last week at the IFB building, Bloomington. (Photo by Ken Kashian)

Nielsen said. Last year, SWAT members worked on unmanned aerial vehicle (UAV) issues, and IFB delegates approved new UAV policy in December. “We took that UAV policy, which served as the basis for new AFBF policy” that passed last month in San Diego, he said.

Nielsen also encouraged SWAT members to “become experts on issues, share your stories and move the ball on issues.” Guebert thanked SWAT members for volunteering their time and reminded them of their responsibility to their fellow members. “We’re here to serve our members,” he concluded. www.facebook.com/illfarmbureau

Quick Takes

FarmWeek • Page 2 • Monday, February 2, 2015

DURBIN SEEKS SINGLE FOOD SAFETY AGENCY — Calling the current food system “hopelessly fragmented and outdated,” U.S. Sen. Dick Durbin, D-Springfield, and Rosa DeLauro, D-Conn., last week introduced a bill to create a single, independent food safety agency. The Safe Food Act of 2015 calls for authority over food safety inspections, enforcement and labeling — currently split among 15 agencies — to be transferred and consolidated into one agency. It also would give the agency the authority to recall unsafe food, require risk assessments and preventive control plans to reduce alternation, among other provisions. Durbin and DeLauro filed similar legislation in 1999, 2004, 2005 and 2007. “The fragmented nature of our food safety system has left us more vulnerable to the risk of foodborne illness,” Durbin said. “It has too often forced citizens to go it alone in the case of outbreak.” HOUSE AG SUBCOMMITTEE APPOINTMENTS MADE — Several members of Illinois’ Congressional delegation will serve on U.S. House Committee on Agriculture subcommittees this year. Chairman Michael Conaway, RTexas, announced the following appointments last week. • Mike Bost, R-Murphysboro: General Farm Commodities and Risk Management, and Conservation and Forestry. • Cheri Bustos, D-East Moline: General Farm Commodities and Risk Management, and Livestock and Foreign Agriculture. • Rodney Davis, R-Taylorville: Nutrition, Commodity Exchanges, Energy and Credit, and chairman of Biotechnology, Horticulture and Research.

INDUSTRIAL HEMP BILLS FILED — Industrial hemp wouldn’t be illegal under a bill pending in Congress. Rep. Thomas Massie, R-Ky., and more than 40 co-sponsors recently introduced H.R. 525, the Industrial Hemp Farming Act of 2015. The bill would exclude industrial hemp from the definition of marijuana under the Controlled Substances Act. Its companion bill, S. 134, was introduced by Sen. Ron Wyden, DOre., and has three co-sponsors. Illinois Farm Bureau supports the bill. American Farm Bureau policy, which was modeled after IFB’s policy, supports production, processing, commercialization and utilization of industrial hemp. KAITSCHUK JOINS RAUNER STAFF — Jim Kaitschuk, Illinois Pork Producers Association (IPPA) executive director, recently joined Gov. Bruce Rauner’s staff. Kaitschuk now serves as Rauner’s legislative director and will serve as a legislative liaison with the General Assembly. Kaitschuk joined IPPA in 2003 and observed numerous changes, struggles and successes in the industry. Tim Maiers, IPPA director of public relations, has been named interim executive director.

(ISSN0197-6680) Vol. 43 No. 4 February 2, 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. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

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. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2015 Illinois Agricultural Association

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

IFB delegate ‘extremely humbled’

BY DEANA STROISCH FarmWeek

Calling it a “huge honor,” Thomas Marten described himself as “excited and extremely humbled” to represent Illinois Farm Bureau on a trip to Cuba in March. “I really care deeply about moving our state forward,” he said. “We’ve seen some difficult times in this country. I think trade, especially in agriculture, has Thomas Marten been one bright spot for our nation and for our state. We continue to see that grow and develop, and if we can continue moving that forward, I think that’s only going to be good for farmers in Illinois and around the Midwest.” Marten will join dozens of

others from across the country during the U.S. Agriculture Coalition for Cuba (USACC) “Learning Journey to Cuba” March 1-4. Marten, 23, visited Cuba as part of IFB’s 2012 Cuba Market Study Tour. He has also visited Brazil, Panama and Colombia. Because of U.S. and Cuban restrictions, the 2012 visit to Cuba was limited mostly to the city of Havana, he said. This year, he said, he hopes to see more rural agricultural production areas, visit some ports and meet with government officials. USACC describes the trip as the “first major U.S. business delegation to Cuba” since President Barack Obama announced plans to normalize relations with Cuba in December. Marten said the president’s announcement marks “an exciting time for both countries.” “I’m excited to see it be

something that we’re now talking about in coffee shops as well as the halls of Congress. I think that’s an important step for us as a country,” Marten said. “When we really have a serious discussion about it, it’s pretty hard to see that 54 years of a failed embargo has done much for the United States on our trade interests or in Cuba with their human rights interests.” Marten works on his family’s 2,000-acre corn and soybean farm in Montgomery and Macoupin counties. Memberships include Illinois Corn Growers Association, Illinois Soybean Association, Illinois State Rifle Association and SIU Alumni Association. He also serves as regional director of the North Central U.S. for FarmHouse International Fraternity and alumni adviser for the fraternity’s chapter at Southern Illinois University.

Farm bill: Your questions answered

Landowners have until Feb. 27 to decide whether to reallocate base acreage or update payment yields. Farmers can choose between Price Loss Coverage (PLC) or Agricultural Risk Coverage (ARC) at the county or individual level through March. 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: When it’s time to issue a payment for the 2014 crop year (in October of 2015), what five years will be used for the Olympic average (then drop the high and

low)? Will the five years include the market year that ends in August 2015? In other words, will the five years used to calculate Olympic average for the 2014 payment include (2014, 2013, 2012, 2011 and 2010), or (2013, 2012, 2011, 2010 and 2009)? A: Assuming you are referring to either of the ARC programs,

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.

Research conducted by the U.S. Farmers and Ranchers Alliance (USFRA) shows consumers consider how farmers and others care for animals as an important factor in what food they choose to buy and eat. The global animal health and welfare officer for Oak Brook-based fast food giant, McDonald’s Corp., agrees. “When we asked our consumers what they expected of McDonald’s in terms of changes in our supply chain, the No. 1 answer was humanely raised,” said Bruce Fienberg, who along with dairy sector representatives, a veterinarian and a humane care advocate participated in a USFRA-sponsored panel discussion in Florida last week. Feinberg said the recent consumer research took place in Australia, Brazil, France, Germany and the United States.

The National Milk Producers Association (NMPF) touted its Farmers Assuring Responsible Management (FARM) program as an example of dairy farmers responding to concerns about animal care. “We set up the FARM animal care program, an on-farm evaluation and education program, which looks at all of the animal care issues that are important on a dairy farm,” said Jim Mulhern, NMPF president and CEO. “There are 50 or so variables we look at. Over 15,000 dairy farmers have gone through that program.” The leader of the American Humane Association (AHA) promoted her organization’s farm animal welfare certification program. AHA requires a thirdparty audit to ensure farmers meet the organization’s standards in raising and handling animals. Those who do can use an

“American Humane Certified” label on products. “The definition of humane should be science and evidencebased practices, not emotion,” said Robin Ganzert, AHA president and CEO. Panelists agreed the size of farms has no relation to the degree of care animals receive from farmers or farm workers. A veterinarian participating on the panel noted a comfortable cow is a cash cow. “Simple things like just learning how to move an animal from the barn to the milking parlor in a quiet and calm manner can make a huge difference,” said Dr. Marcia Endres, University of Minnesota professor of dairy science, referring to practices that increase milk production. Illinois Farm Bureau is an affiliate of USFRA, which complements the Illinois Farm Families program.

a new benchmark revenue and guarantee will be calculated each year using an Olympic average of the five most recent crop years’ Market Year Average (MYA) price. For the 2014 crop year, the benchmark calculation will use the MYA prices for 2009, 2010, 2011, 2012 and 2013. To see if a payment is due for the 2014 crop year, the 2014 MYA price — once it’s known Aug. 31, 2015 — will be used to generate that crop year’s revenue and be compared to the guarantee.

Animal care counts with consumers

BY MIKE ORSO

Guebert encourages IFB Young Leaders to boost involvement Page 3 • Monday, February 2, 2015 • FarmWeek

Illinois Farm Bureau President Richard Guebert Jr. couldn’t help but smile on numerous occasions as he gazed across the ballroom of the Marriott Hotel and Conference Center in Normal during his speech to IFB Young Leaders. The room, which was the epicenter of last week’s Young Leader State Conference, was filled to capacity with young farmers, ag business professionals and college students from around the state and even neighboring states. A record 460 Young Leaders attended the annual, twoday event. And that’s a very good sign not only for the future of the ag industry and Farm Bureau,

but also to ensure agriculture has a voice in legislative and regulatory arenas in the near term and down the road. “This Young Leader Conference shows how involved and engaged you are,” Guebert told the enthusiastic crowd. “You are the leaders today.” Young Leaders, which focuses on individuals between 18 and 35 years of age, formed six new county programs in Illinois last year and recruited 102 new farmer members. But while there’s strength in numbers, Young Leaders also must be involved in ag issues to make their voices heard and to have a bigger impact on the industry. “We (farmers) are a declining population. Increased involvement provides opportunities,”

Young people who aspire to farm or expand existing operations may want to consider entering the livestock business. Farmers who diversify their operations through livestock production can spread their risk and add new revenue streams. Livestock production typically requires less farmland than row crop production, thus reducing start-up capital required for some young farmers, according to a panel of industry experts who discussed the situation at the Illinois Farm Bureau Young Leader State Conference in Normal. “The best place to feed livestock is where the resources are, where you grow your (feed) product,” said Nic Anderson, business developer for the Illinois Livestock Development Group. “We’ve got opportunities out there (in the state).”

Illinois farmers last fall harvested record crops (2.35 billion bushels of corn and 548 million bushels of beans), yet the Prairie State has a deficit of beef, pork and dairy products due to Chicago and other consumer markets that require imported products to meet demand. John Hagenbuch, a farmer from LaSalle County, saw an opportunity about six years ago to farm full time by expanding his family’s hog operaJohn Hagenbuch tion. The Hagenbuchs put up a new facility and transitioned from raising 150 to 200 sows farrow-to-finish to marketing 22,000 to 24,000 pigs per year through contract production.

BY DANIEL GRANT FarmWeek

Guebert said. “You need to continue to take a more active role (in farm leadership) and

make our voices heard.” Guebert offered examples of current challenges, ranging

from state budget issues and its effect on agriculture to the possibility of an increased amount of overreaching regulations, which must be tackled by farm leaders. Farmers who are active and involved in issues also can help influence consumer attitudes toward food and food production, and clear up misconceptions about the industry. Guebert encouraged Young Leaders to study the issues, know the challenges, learn and study opposing viewpoints, and seek out people who support their ideas and issues to “make a difference on the delegate floor.” Overall, Guebert believes the ag industry has a bright future. IFB next year celebrates its 100th anniversary at the state level.

“My role transferred away from working off the farm to now. Between the hog operation and running custom applications, it pretty much keeps me busy year-round,” Hagenbuch said. “There’s risks (to expanding in the livestock industry), but the rewards are very good.” Hagenbuch applies the manure from the hog operation to his row crop acres and reduced the use of commercial fertilizer by about 90 percent. Anderson said manure can be worth anywhere from

$100 to $150 per acre. “Manure is an asset now,” he said. “It brings a revenue source back to the farm.” Manure also builds healthier soils by improving micronutrients and organic matter, and improves water-holding capacity, according to Lindsey Henson, animal ag lead for the Illinois Soybean Association (ISA). “Livestock is the No. 1 consumer and No. 1 customer of our soybeans,” Henson said. “We want to see that grow.” ISA set a goal to raise soy-

bean production in Illinois to 600 million bushels by 2020. The availability of abundant and affordable feed, along with historically high livestock prices, jump-started growth of Illinois’ livestock industry in recent years. The number of intent-toconstruct notices to build or expand barns last year totals 73 hog facilities, 41 beef facilities and 26 dairy facilities. Nine new turkey facilities also were approved in Illinois last year. — Daniel Grant

Illinois Farm Bureau President Richard Guebert Jr. addresses a capacity crowd at the IFB Young Leader State Conference in Normal. (Photo by Daniel Grant)

Livestock offer opportunities for young farmers to start, grow operations

PENNY WAR DONATION

Daniel and Constance Herriott, Champaign County, contribute to a penny war competition during the Illinois Farm Bureau Young Leader State Conference in Normal. Young Leaders raised $186.92 from the penny war. They also raised $1,287 from a YL carnival, $2,785 from a silent auction and $4,265 from a live auction. A total of $8,523.92 was donated to the Harvest for All program. A record 460 Young Leaders attended the annual event, which will be held next year in East Peoria. (Photo by Daniel Grant)

Young Leader offers tips to compete in farmland market

Many young farmers strive to grow their businesses but lack the resources to buy more farmland due to the historic price run-up in recent years. Farmland prices in the eastern Corn Belt jumped 70 percent from 2010 to 2014. But that doesn’t mean young farmers are out of luck. Reid Thompson, farm manager from Hertz Farm Management in Monticello and member of the Illinois Farm Bureau Young Leader State Committee, recently offered tips for fellow young farmers to compete in the farmland market. “The percent of growth (in the farmland market) has come down the last couple Reid Thompson years (and actually dipped 2 percent for top quality land in Illinois in 2014),” Thompson said at the Young Leader State Conference in Normal. “But, in some areas, farmland values have not gone down. Quality land is holding strong.” Thompson reported a recent farmland sale in central Illinois fetched more than $14,000 per acre. So how can young farmers obtain farmland in such a high stakes market? Thompson advised farmers, particularly younger ones, to know their farm economics numbers, develop a farm resume, get to know farm owners and managers in their areas, market their services, consider leasing ground and consider custom farming. “What we’re seeing in Illinois is a trend towards cash rents,” he said. “Take your real life numbers and determine what you can pay.

Look for alternatives to manage that cost.” If farmers expand their acreage base via rental property, Thompson advised those farmers to consider flexible/alternative leases to protect themselves and landowners from wild swings in farm prices. Year-to-year leases, as opposed to multiyear leases, also can reduce the risk of renting ground. Custom farming provides another avenue for young farmers to build their business without taking as much risk. “It’s a lot easier to get your foot in the door and you’re expanding your base,” Thompson said. Thompson believes cash rental rates could soften in the next year due to drops in crop prices and farm income. “The big thing that affects cash rents going forward is gross farm income,” he said. Farmland, however, remains a good investment for those who can afford it, according to David Kohl, Virginia Tech ag economist, who spoke at the YL conference. “Should you buy land? Yes. Will we see land values come off ? Yes,” said Kohl, who predicted Midwest land values could slip anywhere from 10 to 40 percent in the years ahead. “Be prepared for the six-year rule. Have enough liquidity that you can operate your business and make (land) payments and stay liquid.” Six years marks a key benchmark in the land market as that time frame typically accounts for price swings during transition periods. “Ag economics are in transition,” Kohl said. “I’m cautiously optimistic.” Farmers who don’t have a business plan should develop one soon to remain profitable, or at least keep their heads above water through the current period of volatility, he added. — Daniel Grant

Economist foresees infusion of youth, technology in ag FarmWeek • Page 4 • Monday, February 2, 2015

BY DANIEL GRANT FarmWeek

Economic challenges that surfaced in agriculture in the past year present an obstacle for some young people attempting to enter the business. Grain and oilseed prices are down significantly compared to the previous five years, while farm costs and land prices remain high.

FarmWeekNow.com

Visit FarmWeekNow.com to view a video interview with David Kohl on young farmer trends.

However, the challenges also could present an opportunity for young people to enter the business as some veteran farmers may view this as a good time to scale back, partner up, sell out or retire. “There’s a big youth movement coming,” David Kohl, Virginia Tech economics professor emeritus, told attendees of the Illinois Farm Bureau Young Leader State Conference in Normal. “We’ll also be seeing more innovation and technology (in agriculture).” Family ties are a crucial link for many young people to enter production agriculture. But

David Kohl, right, Virginia Tech economist, discusses ag markets with, left to right, David Erickson, Illinois Farm Bureau Vice President; Matt Rush, chairman of the IFB Young Leader Committee; and Jared Finegan, immediate past chairman of the Young Leader Committee, during the Young Leader State Conference in Normal. Kohl foresees an infusion of youth and technology on the horizon in the ag sector. (Photo by Daniel Grant)

opportunities won’t be limited to those families already in business. “Twenty-one percent of farms have no younger generation to come back,” Kohl said. “To be successful, you have to surround yourself with the younger generation.” A key to success in pro-

duction ag revolves around efficiency. The adoption of more technology and management expertise will be crucial to produce more with less as farmers deal with what Kohl calls the “50/70/70 rule.” “By 2050, we’ll need 70 per-

cent more (ag commodities to keep up with demand). And we’ll need to do this with 70 percent of the resources,” he said. “It’s not about getting bigger. It’s about getting more efficient.” Efficiency holds the key to success in the present as well. The recent commodity supercycle, which was the fourth since 1910 and featured $7 corn and beans in the teens, wound down in 2012. The previous spike in commodity prices occurred due in part to the biofuels boom, the expansion of economies in emerging nations and weatherrelated crop shortages. “Emerging nations repre-

sent about 26 percent of the world’s economy, but accounted for 53 percent of the growth in the past decade,” Kohl said. “The growth rate (in emerging nations) has since dropped from 8 to 10 percent (annually) to about 4 percent.” The biofuels market also matured in recent years barring any major changes to the Renewable Fuels Standard or national ethanol blend rates. Farm margins also could be pressured by an increase in interest rates and a stronger dollar, which could hurt U.S. ag exports. Kohl, who predicted a slight uptick in interest rates this year, also expressed concern about increased regulations that could stifle the ag industry. “The easy money has been made,” he said. “The real good producers are still going to make a profit. They’ll adjust and adjust quickly. “The biggest challenge is the high overhead and fixed cost structure,” he continued. “It’s going to be a game of chicken this year with land rents.” Kohl encouraged young farmers to incorporate technology and innovation into their operations. Business planning also will be crucial for farmers. The economist practices what he preaches. Fifteen years ago, Kohl and a young business partner launched a dairy creamery in a former meat packing plant on the East Coast. They sell their milk in glass bottles, and six years ago, began a home delivery service. They’re currently selling about 100,000 gallons of milk each month.

Livestock farmer personal information suit dropped by federal district court

Dismissal last week of an American Farm Bureau Federation (AFBF) lawsuit seeking to block the U.S. Environmental Protection Agency (EPA) from releasing personal information about livestock farmers drew strong criticism from AFBF President Bob Stallman. “Farmers, ranchers and citizens in general should be concerned about the court’s disregard for individual privacy,” Stallman said. “This court seems to believe the Internet age has eliminated the individual’s interest in controlling the distribution of his or her personal information. We strongly disagree.” The federal district court in Minnesota dismissed the lawsuit. It concluded no federally permitted livestock farmer can be injured by releasing a name, address, telephone numBob Stallman ber and GPS location through a Freedom of Information Act request because the Clean Water Act mandates such disclosure concerning permit issuance. For livestock farmers without a Clean Water Act permit, the court concluded that so long as the farmer’s personal information can be found somewhere on the Internet, EPA’s distribution of that same information does not result in any injury to the farmer. AFBF and its co-plaintiff, the National Pork Producers Council, have 60 days to appeal the decision. Prior to the AFBF suit, EPA released personal information of farmers and ranchers from 29 states. AFBF filed suit to block further disclosures regarding farmers and ranchers in Minnesota, California, Idaho, Nevada, Oklahoma and Washington.

Page 5 • Monday, February 2, 2015 • FarmWeek

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Rail performance improves FarmWeek • Page 6 • Monday, February 2, 2015

BY DEANA STROISCH FarmWeek

What a difference a year makes. Described last year as “sheer chaos,” performance of the nation’s rail system significantly improved this year — even with a larger harvest, according to agricultural and transportation officials. Surveys conducted by the Soy Transportation Coalition (STC) and the University of Minnesota attribute the improvement to a longer harvest season, railroad’s response to increased demand and favorable weather, among other things. STC monitored rail performance as part of a research project, “2014 Harvest: Attaching a Garden Hose to a Fire Hydrant.” The surveys continue. “Railroads are proving that the sizable investments made over the past year continue to yield results for agricultural customers,” said Mike Steenhoek, executive director of the Soy Transportation Coalition. “Almost all indicators of

rail performance included in our surveys are highlighting sustained improvement.” General findings include: • A majority of participating grain handling facilities report that cycle times for railroads are faster than a year ago. • Rail orders typically on time. • Few reported service delays. Before harvest began, many in the agricultural industry — including GROWMARK — voiced concern about the reliability of rail given the projected size of the 2014 harvest. Tracy Mack, GROWMARK’s director of bulk and packaged goods logistics, said rail service and equipment supply “improved drastically” from last year. “It has been the result of many contributing factors: milder winter, more carrier preparedness and proactivity going into winter weather, emergency crews, heated switch investment, adjustments in capital expenditures to remove emerging bottlenecks from changes in traffic patterns, new crews

coming into service in the right places and improved shipper forecasting,” Mack said. Several railroad companies spent millions of dollars to meet demand. BNSF Railroad, for example, invested more than $1 billion on new locomotives, hired 7,000 new employees and added 900 new grain hoppers to its system, according to Greg Guthrie, BNSF’s director of ag products. Guthrie gave a presentation to farmers at the American Farm Bureau Federation annual convention in San Diego. In the last 14 years, BNSF added more than 150 origin locations nationwide. Each station costs $25 million to $30 million to build. “Our growth (last year) was double the GDP, and we woke up one day and realized that we took on 50 percent of all the railroad growth in the United States in one year,” Guthrie said. Mike Orso, Illinois Farm Bureau director of news and communications, contributed to this story.

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Barge freight rate could level off this spring to a 13- to 14-foot draft, as opposed to just a 9-foot draft. A 9-foot barge moves A number of factors about 19,200 tons per year could tug on barge freight compared to a 14-footer, rates this spring after a which can move about major run-up in prices last 26,400 tons annually. fall. “As we continue to go to River freight rates could larger barges, it gives us flow downward this spring more flexibility to move due in part to lower fuel tonnage,” Mestemacher prices and a larger barge fleet/increased efficiencies, said. Weather always remains according to Mark an unconMestemacher, trollable of Ceres Consulting in East ‘If we have a dry key to freight St. Louis, s p r i n g a n d l o w rates, which operwater, and more though. ates more “If we than 200 (barge) tie-ups, have a dry barges. f r e i g h t r a t e s spring and The numcould go up.’ low water, ber of covand more ered hopper (barge) tiebarges in the — Mark Mestemacher ups, freight U.S. increased Ceres Consulting rates could from 10,975 go up,” he in 2014 to said. 11,676 this Competing commodities year. “As we’ve increased that also could influence barge (number of covered hopper freight rates. About 60 to 65 percent of barges barges), it provides a little returning from the Gulf more liquidity in trade and barge freight,” Mestemach- region in recent weeks are er said last week at the Mid- loaded with competing commodities, such as salt. Co Commodities winter outlook meeting in Bloom- Mestemacher believes that trend could continue at ington. The boost in the number least through the first quarter. of covered hopper barges Barge freight rates results from new investments and a recent industry spiked last fall during the record corn and soybean trend of converting opentop barges to covered hop- harvest along with a record pers due to less demand for year for soybean exports. But lower crop prices at river transportation from the coal industry, according harvest eased some of the demand for river transto Mestemacher. Barge efficiency remains portation as many farmers on an upward trend as well, opted to store their crops as barge owners build more in hopes of higher prices in the months ahead. barges that can be loaded BY DANIEL GRANT FarmWeek

Will crop demand remain strong, limit buildup of stocks?

Page 7 • Monday, February 2, 2015 • FarmWeek

BY DANIEL GRANT FarmWeek

Now that tight crop supplies are a distant memory, farmers must depend on strong demand to keep prices from spiraling lower. And, fortunately, crop demand continues to chew through massive corn and bean supplies at a blistering pace. But will the strong consumption pace continue? Commodity risk consultants discussed the situation last week at Mid-Co Commodities 35th winter outlook meeting in Bloomington. The event drew a record crowd. “Two record (corn) crops, back to back, are going to change price relationships,” said Aaron Curtis, Mid-Co commodity risk consultant. “Fortunately, demand continues to trend up.” Good ethanol margins, up until recently, encouraged ethanol plants to run near or even above capacity. And the world market could be poised to increase imports of U.S. ethanol. However, lower fuel prices and tighter margins could cause the ethanol industry to

take its foot off the gas pedal when it comes to production. “Ethanol demand continues to be very good,” Curtis said. “But margins are dipping into the red the last couple weeks. That’s something to keep an eye on. “As the price relationship (between ethanol and unleaded gas) continues to be a disadvantage to blenders, we’ll see ethanol Aaron Curtis stocks continue to grow,” he continued. “It will force (ethanol) plants to slow production.” U.S. corn exports, meanwhile, are projected at 1.75 billion bushels, down 150 million bushels from last year. Elsewhere, U.S. soybean exports set a new record at 1.77 billion bushels. And soybean crush could be the largest since 2007. “Why are bean prices staying so high (despite last year’s record crop)? Demand,” said Bob Trimpe, Mid-Co commodity risk consultant.

Workshop set on extended growing season

A three-day workshop focusing on the essentials of extending the growing season with high tunnel greenhouses will be held March 2-4 at Prairie Fruits Farm and Creamery in Champaign. Participants of The Land Connection-sponsored workshop will learn the essentials of season extension from farmers and other professionals in a classroom setting as well as visits to Urbana’s Blue Moon Farm and Mahomet’s Tomahnous Farm. Attendees will also spend a day at the University of Illinois’ Sustainable Student Farm where they will participate in a handson demonstration inside one of the farm’s high tunnel greenhouses. The workshop costs $375 before Feb. 20 and $425 through Feb. 27, which includes all meals and materials. Participants may also choose to attend one or two days of the workshop. Register at {thelandconnection.org} or call 217-840-2128. America’s best choice for affordable travel since 1967!

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China figures to import a whopping 2.7 billion bushels of beans, including a large portion from the U.S. Sales of U.S. beans also increased 34 percent to Mexico and 24 percent to the European Union. “We have some pretty good sales to countries other than China,” Trimpe said. The world market, however, will shift its buying pattern to South America in coming Bob Trimpe months as farmers there are set to harvest a record crop.

Meanwhile, many analysts believe U.S. farmers this year will plant a record amount of soybean acres (around 88 million) at the expense of some corn acres. Corn acres, however, could be slightly higher than expected as winter wheat growers planted about 2 million fewer acres of that crop, thus freeing up more land for spring planting. “It’s going to be tough with those kind of (soybean) acres to rally this thing back over $10 (per bushel),” Trimpe said. “It looks like beans could settle in a sideways pattern.” In other news, the wheat market faces a comfortable stocks-

to-use ratio of 32.6 percent. “The big story (with wheat) is the quality issues (vomitoxin, low test weights) from last year’s crop,” said Hugh Whalen, Mid-Co commodity risk consultant. “If you have quality wheat, it’s definitely worth some money,” he continued. “Unfortunately, a lot of people are going to have to hold off old-crop (sales) and Hugh Whalen blend it off ” with new-crop grain due to quality issues.

Wheat forum features profitabililty sessions

Mark Feb. 17 on your calendar to attend the Illinois Wheat Association’s annual Winter Wheat Forum at Krieger’s Holiday Inn Convention Center in Mount Vernon. Aimed at helping Illinois wheat producers increase productivity and profitability, forum sessions will cover topics, including scab and vomitoxin management, fungicide application, Illinois legislative update, weather and markets. Participants can visit exhibitors and attend the Illinois Wheat Association annual meeting at the conclusion of the forum. Registration

begins at 8 a.m. with educational sessions beginning at 9 a.m. The forum will conclude at 3 p.m., and includes lunch for registered attendees. Illinois Wheat Association members may register for the conference on site for $15 per person; the general public may attend for $30 per person. For more information, visit {illinois wheat.org} or contact Diane Handley, Illinois Wheat Association executive secretary, at 309557-3662. The forum is made possible through the support of the Illinois Farm Bureau.

Weather forecast favors big crops in South America, U.S. FarmWeek • Page 8 • Monday, February 2, 2015

BY DANIEL GRANT FarmWeek

Dryness concerns in parts of Brazil likely won’t have a major impact on South American soybean production, according to industry experts. Many of the dryness issues were confined to northeast Brazil this season. Meanwhile, parts of southern Brazil and much of Argentina received ideal weather for crop production with steady rounds of rainfall throughout much of the growing season. “I don’t think there’s any real issues to be concerned about in South America,” Eric Apel, ag meteorologist, said

last week at Mid-Co Commodities 35th winter outlook meeting in Bloomington. “Argentina and southern Brazil have received adequate to surplus precipitation.” Bob Trimpe, commodity risk consultant at Mid-Co, said Brazilian soybean production may not reach the high side of estimates near 95.5 million metric tons (3.5 billion bushels). But 93 to 94 million metric tons of beans looks to be possible. “That would still be a record,” said Trimpe, who noted Brazilian soy exports could grow 3 percent. Elsewhere, soybean production in Argentina this year

Soybean board director sought

Interested in serving on the United Soybean Board? Apply to the Illinois Soybean Association by Feb. 12. David Hartke of Teutopolis remains eligible for another term. Any soybean farmer involved with the soybean checkoff can serve. Candidates must complete an application and Agreement to Serve statement. The Illinois Soybean Board of Directors will submit to the U.S. Department of Agriculture a “first preferred choice nominee” and “second preferred choice alternate.” The U.S. Secretary of Agriculture will make final appointments, and chosen individuals will begin serving three-year terms in December. For more information, visit {bit.ly/15h78yh} or call 309663-7692.

could increase nearly 37 million bushels to around 55 million metric tons (about 2 billion bushels), according to the analyst.

“Production has been steady,” Trimpe said. “They had almost perfect weather.” Soy meal exports from Argentina could grow 14 percent this year, he noted. Meanwhile, weather in the U.S. could be volatile in the months ahead. Apel predicts Arctic air could invade the Midwest this month with cold temperatures lasting into early March. “There’s good reason to believe winter is not finished, and we could see another push from it,” he said. The forecast Friday called for a front to pass through the

Midwest during the weekend and drop a wintry mix and significant snowfall in some areas, including Illinois. After that, Apel believes a weak El Nino pattern could emerge and bring the Midwest warmer-than-normal temperatures and a normal precipitation pattern in April and May. An El Nino not only could benefit spring planting but also the growing season. Apel predicts normal to below-normal temperatures June through August with a near-normal precipitation pattern.

Managing hayland and pastures, and using forages for livestock will be the focus of the Feb. 24 Illinois Forage Institute at the Stephenson County Farm Bureau Building in Freeport. The educational program will begin at 9 a.m. and conclude at 4:30 p.m. Topics will include harvesting baleage, utilizing reduced lignin alfalfa in feeding livestock, fungicides on alfalfa, feeding options for goats, farm operation succession planning, the 4Rs of soil

fertility and 2015 Illinois Forage Expo preview. Commercial exhibitors will also be on hand. Companies interested in setting up foragerelated commercial exhibits should contact Dave Gentry at 309-846-8320. Illinois Forage and Grassland Council members will pay $15 and nonmembers will pay $25. Attendees should pre-register by Feb. 18. After that date, the cost will be $20 and $30 for members and nonmembers, respectively. Regis-

tration covers a noon meal and forage presentation handout material. To register, visit {web.ex tension.illinois.edu/jsw/}. The complete program agenda can be viewed at {illinoisforage. org}. The Illinois Forage and Grassland Council sponsors the institute with support from USDA Natural Resources Conservation Service, University of Illinois Extension and Stephenson County Farm Bureau.

Forages topic of upcoming institute in northern Illinois

Rural public school districts can help prepare their students for future academic and career success by applying for $2.3 million in math or science grants from America’s Farmers Grow Rural Education sponsored by the Monsanto Fund. Until April 1, farmers can nominate a public school district in their community to apply for a $10,000 or $25,000 grant. Nominated school districts can then submit grant applications through April 15 to compete for the funds. America’s Farmers Grow Rural Education launched nationally in 2012. Since then, it has awarded more than $7 million to about 500 school districts. Illinois school districts have received $580,000 in grants from the program during the last three years. School districts that apply for a $10,000 grant compete against other school districts in the same USDA-appointed Crop Reporting District. School districts applying for a $25,000 grant compete against schools located in the same state or designated region. All applications will be evaluated based on merit, need and community support. The America’s Farmers Grow Rural Education Advisory Council, a group of farmer leaders from across the country, will select the winning grant applications that will be announced in August. For more information about the academic program, visit {GrowRuralEducation.com}.

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Tuesday: • FarmWeek: “The Early Word” • Robert Bauer, Illinois State Geological Survey: fracking in Illinois • Brad Richards, Illinois Oil and Gas Association: fracking economic impact • Bryce Anderson, DTN Wednesday: • Dr. Paul Pedersen, OSF Medical Group: advanced care planning • Tim Schweizer, Illinois Department of Natural

Resources: cross-country skiing and snowmobile opportunities Thursday: • Brian Aussieker, COUNTRY Financial: precison ag and federal crop insurance • Kyle Brase, Illinois Wheat Association: Feb. 17 wheat forum • Frank Butterfield, Landmarks Illinois Friday: • Todd Ely, Ely Consulting Group: port development in Cairo, Ill. • Don Schaefer, Mid-West Truckers Association: MidWest Truck and Trailer Show

Manar: Illinoisans share values whether theyâ&#x20AC;&#x2122;re rural or urban residents

Page 9 â&#x20AC;˘ Monday, February 2, 2015 â&#x20AC;˘ FarmWeek

Changing state politics GALC keynote speech

â&#x20AC;&#x2DC;People want better schools, the state to be more fiscally responsible and good roads. They want the state to turn the corner and get its fiscal house in order ... I hear that from all parts of my district.â&#x20AC;&#x2122;

BY KAY SHIPMAN FarmWeek

Deep down, Illinoisans want the same things from government whether they live in a major city or the country, according to a state senator who describes his legislative district as a microcosm of Illinois. â&#x20AC;&#x153;Whether I find myself in Coffeen or GM Square in Decatur, the people want the same thing. I learned that and it was re-emphasized during 35 town hall meetings in the past year,â&#x20AC;? Sen. Andy Manar, D-Bunker Hill, told FarmWeek. Manar plans to discuss the changing political dynamics of rural and urban Illinois during his keynote address at the Illinois Farm Bureau Governmental Affairs Leadership Conference (GALC). Â Â The GALC occurs Feb. 25-26 in the Crowne Plaza, Springfield. â&#x20AC;&#x153;I heard the same things,â&#x20AC;? Manar said of his constituentsâ&#x20AC;&#x2122; comments. â&#x20AC;&#x153;People want better schools, the state to be more fiscally responsible and good roads. They want the state to turn the corner and get its fiscal house in order ... I hear that from all parts of my district.â&#x20AC;? Manar, pronounced mu NAR, described his legislative district as half urban with Springfield and Decatur, and half rural dominated by small towns and farms. He speculated his Bunker

â&#x20AC;&#x201D; Sen. Andy Manar Hill address means he lives in the smallest town, population 1,809, in the state senate. Having just completed his first two-year senate term, Manar led discussion last year on redistributing state elementary and secondary education funding with an emphasis on school need. Last week, the senator told FarmWeek that talk about better schools â&#x20AC;&#x153;will lead to a very aggressive conversation to address the haves and have nots.â&#x20AC;? Manar applauded the public policy efforts of Illinois Farm Bureau, its leaders and members, and encouraged them â&#x20AC;&#x153;to continue doing what Farm Bureau does best.â&#x20AC;? â&#x20AC;&#x153;Farm Bureau is a bottomup organization whose policy is driven by its members. Thatâ&#x20AC;&#x2122;s why it is so successful because of that structure,â&#x20AC;? he said, adding that his grandfather grew up on a Madison County farm. IFBâ&#x20AC;&#x2122;s other important contribution to the General Assembly remains the Adopt-a-Legislator program that Manar called â&#x20AC;&#x153;invaluable.â&#x20AC;? â&#x20AC;&#x153;I see the results of that program play out every

day here with my colleagues,â&#x20AC;? conference participants will he said. discuss issues with state legManar plans to have islators during a statewide breakfast soon with a county Farm Bureau manager and the countyâ&#x20AC;&#x2122;s adopted senator during her visit, and pointed out a second adopted senator soon will return to ManFarmers, landowners and others involved in the Lake arâ&#x20AC;&#x2122;s district. Springfield Watershed project will hear an update from 8:30 to â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a big believer in this 11:30 a.m. Feb. 11 in the Northfield Center, 3280 Northfield program, which directly Drive, Springfield. Participants need to register online at bridges the gap in the geo{bit.ly/1ChTUQu}. graphic area,â&#x20AC;? he added. Speakers include Howard Brown of GROWMARK Inc., In addition to Manar, Dan Schaefer of Illinois Fertilizer & Chemical Association, Wednesdayâ&#x20AC;&#x2122;s keynote speakers Lauren Lurkins of Illinois Farm Bureau, Ed Corrigan of include Gary Baise, a WashBrandt Consolidated and Mike Plumer of Illinois Council on ington, D.C., attorney who Best Management Practices. specializes in the Clear Water A panel of farmers will discuss the best management pracAct, the Clean Air Act and tices used within the Indian Creek and Lake Springfield waterthe National Environmental sheds. Policy Act.Â The next day, two county government officials, Larry Walsh of Will County and A seed-starting workshop for gardeners and farmers will be Jason LeMar of Menard conducted from 1 to 4 p.m. Feb. 15 at the Sustainable Student County, will discuss issues Farm at the University of Illinois, Urbana. and trends shaping the strucWorkshop participants will learn the basics of germinating ture and function of local seeds and caring for young seedlings. governments. Farm staff will demonstrate planting for different seed Conference participants types. Participants of The Land Connection-sponsored event may choose from among 20 will plant their own seed trays and take home a six-pack of breakout sessions. Topics planted vegetable seeds. include transportation, local The workshop costs $20 per participant, which includes all government, the farm bill, materials. environment, trade and the Space is limited and advanced registration is required. political environment. Register at {thelandconnection.org} or call 217-840-2128. On Wednesday evening,

Lake Springfield Watershed project participants to meet

Seed basics taught at workshop

Start Planning Now Date February 3 February 3 )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\ )HEUXDU\

legislative reception. Registration costs $50 for Wednesday only, $30 for Thursday only or $70 for both days. Hotel reservations for a special conference rate are due Feb. 10. Conference registrations are due Feb. 20. View the conference agenda by visiting {bit.ly/1wBCW7E}. For more information or to register, contact your county Farm Bureau office.

Attend a meeting at your convenience ...

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Rick Basinger, 618-963-2621 Keith Wilken, 618-526-4541 /HRQDUG :LOOLDPV %RE 'LWWPDU 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO 6WHYH 6LP -HVVLFD *UDPPHU *D\ %RZOLQ 0RUJDQ %RRWK &DURO %HQQHWW 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO

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

Conservation, cover crop specialists converging

FarmWeek • Page 10 • February 2, 2015

BY KAY SHIPMAN FarmWeek

Farmers seeking cover crop advice, sounding boards or war stories are finding many opportunities across Illinois. Cover crop specialists, suppliers and researchers provided information at the first of three regional Conservation Cropping Seminars in Sycamore last week. (See additional story for remaining seminars). A farmer panel also shared its experiences growing cover crops in northern Illinois. The Illinois Council on Best Management Practices (CBMP) announced it added a fourth regional cover crop specialist to its cadre that offer cover crop training and promotion. Richard “Dick” Lyons farms 800 acres with his brother and remains active in the Lake Springfield Watershed Project. He offers more than 15 years of no-till and three years of cover crop experience. He taught agriculture and agronomy classes for 30 years and led the Lincoln Land Community College agriculture program in Springfield. Contact him at rlyons@speed net.com. Lyons joins cover crop specialists Pete Fandel, associate agriculture professor at Illinois Central College in East Peoria; Dean Oswald, retired University of Illinois Extension agri-

Two conservation seminars remain

Lauren Lurkins, center, Illinois Farm Bureau director of natural and environmental resources, chats with regional cover crop specialists, Richard “Dick” Lyons, right, and Dean Oswald last week. Lurkins discussed the state Nutrient Loss Reduction Strategy during the first Conservation Cropping Seminar in Sycamore. Oswald and Lyons, both with the Illinois Council on Best Management Practices, provided information and answered farmers’ questions. (Photo by Kay Shipman)

culture adviser with experience in livestock, grazing and forage production; and Mike Plumer, retired U of I Extension specialist with extensive cover crop and conservation tillage experience. They may be contacted at pete.fandel@icc.edu, doswald@illinoiscbmp.org and plumermike@gmail.com. CBMP also offers information and newly released cover crop videos online at {illinoiscbmp.org}. Hans Kok, an agricultural consultant based in Indianapolis, recommended cereal rye as a go-to cover crop for north-

ern Illinois. Kok’s mantra: plant cover crops early by Sept. 10 in the north. Between Sept. 15 and Oct. 15, northern Illinois farmers lose 12 degrees of daytime temperatures and 1.5 hours of daylight. Cover crops need to be planted early or they won’t grow enough to overwinter, he explained. Kok urged farmers to start with simple cover crop mixes and advised them not to plant tillage radishes unless they are part of a mix. Radishes develop an odor when they get large, he noted. “We have sto-

ries of volunteer fire departments being called out for natural gas leaks,” he quipped. Farmers need to buy cover crop seed from reputable sources, Kok advised. “Be skeptical about all the cover crop claims (from unknown sources),” he added. Kok recommended cover crop seed costs range from $20 to $30 per acre. Drop a species if it’s too expensive, Kok said. Seeding application costs should range from $9 to $15 per acre, he said. Likewise, farmers need to work with

Farmers may attend two regional Conservation Cropping Seminars this month. Dates and locations include: Feb. 4, Lake Land Community College, Mattoon; and Feb. 18, Western Illinois University student union, Macomb. Participants must register. Each seminar starts at 8:30 a.m. Lauren Lurkins, Illinois Farm Bureau director of environment and natural resources, plans to discuss the Illinois Nutrient Loss Reduction Strategy. A panel of farmers with conservation cropping experience will share their expertise. Other region-tailored topics include weed and herbicide management with cover crops and nutrient uses. The registration fee costs $20 and includes a meal. High school and college students will pay $10. Register online and pay via credit card at {ccswcd.com} or call the Champaign County Soil and Water Conservation District at 217-352-3536, extension 3.

reputable, experienced seed applicators, Kok said. Kok recommended growers try the Midwest Cover Crop Council, which offers a variety of information and an online county-specific tool to select cover crop species. Visit {mccc.msu.edu}.

WIU plans 45th Ag Mech Farm Expo

People across western Illinois and beyond will glimpse emerging ag technology, tractors and machinery, livestock and crop equipment at the 45th Ag Mech Farm Expo at Western Illinois University (WIU), Macomb. Farm Expo runs Feb. 7 from 9 a.m. to 5 p.m. and Feb. 8 from 10 a.m. to 4 p.m. For the second year, the WIU School of Agriculture will incorporate an alumni social for all ag alumni, students, and current and retired faculty Feb. 7 from 6 to 9 p.m. in the Multicultural Center, Macomb. Farm Expo activities include a pedal tractor pull and exhibits of farm machinery, emerging ag technology, livestock and crop supplies, and ag structures plus displays of crafts and farm toys. In addition, two FFA career development events (CDE) are slated Feb. 7 from 9 a.m. to 3 p.m. FFA members will compete in the Illinois FFA State Ag Issues CDE and Illinois FFA State Job Interview CDE. For more information, visit {wiufarmexpo.com} or call 309298-1080. Individuals planning to attend the alumni social should confirm their attendance with the Ag School at 309-2981080. Follow the WIU Ag Mech Farm Expo on Facebook at {face book.com/WiuAgMechFarmExpo} and the WIU School of Agriculture at {facebook.com/WIUag}.

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Popcorn’s reputation cool, healthy Popcorn growers take note — a cool snack grows in your fields. A new report from Rabobank International revealed that U.S. sales of the bagged, pre-popped, ready-toeat snack grew to $750 million in 2014, up 25 percent from 2013 and 60 percent since 2012.

Overall, popcorn sales declined, indicating consumers are eating less but paying more for premium quality and convenient offerings. Microwave popcorn fell victim in that equation with sales dropping from a peak of $900 million in 2012 to about $830 million in 2014.

IDOA launching conservation cropping systems partnership BY KAY SHIPMAN FarmWeek

Illinois farmers soon may tap information, resources and assistance offered through a new statewide partnership led by the Illinois Department of Agriculture (IDOA). Mike Rahe, IDOA agriculture land and water resource specialist, discussed the Illinois Conservation Cropping Systems Partnership at a Conservation Cropping Seminar last week in Sycamore. Rahe described the new initiative as expanding the traditional partnerships among IDOA, the Natural Resource Conservation Service, Soil and Water Conservation Districts (SWCDs) and Mike Rahe agricultural universities. “A lot of new partners want to get involved with soil health,” he added. Those new partners include community colleges, commodity and farm groups, agriculture supply businesses and nongovernmental organizations. Partnership participation will be voluntary and cost nothing, he emphasized. Partners will find opportunities to be involved in workshops, to speak at or find speakers for events, and to share informaFarmWeekNow.com tion through IDOA, according Go to FarmWeekNow.com to see to Rahe. Kay Shipman’s interview with Mike In a similar vein, IDOA Rahe. recently received funding as a USDA Regional Conservation Partnership Program and plans to establish soil health on-farm plots. Rahe speculated sign-up would start this summer and about 65 farm fields, averaging 40 acres, may be involved in the fiveyear program. Emphasis will be placed on no-till, cover crops and nutrient management. SWCDs will provide additional details in the near future, Rahe said.

USDA proposes year-round meat inspections

USDA’s Food Safety and Inspection Service has proposed new standards to reduce the amount of salmonella and campylobacter in ground chicken and turkey products, and raw chicken breasts, legs and wings. “This is a meaningful, targeted step that could prevent tens of thousands of illnesses each year,” said U.S. Agriculture Secretary Tom Vilsack. The agency proposes measures to reduce salmonella illnesses by at least 30 percent Tom Vilsack and reduce illnesses from campylobacter by 19 percent to 37 percent. The division plans to reach its goal by sampling products throughout the year, instead of infrequently and on consecutive days. Its research suggests the new measures could prevent an estimated 50,000 illnesses annually.

Food nutrition labels deliver more confusion than clarity

Nutrition labels may be confusing U.S. and Canadian consumers more than educating them, according to a McGill University study published in the Annals of the New York Academy of Sciences. Researchers compared the effectiveness of four major nutrition labeling systems in influencing consumers to make healthier food choices and found the Nutrition Facts panel used on products in the U.S. and Canada may be the least effective. Researchers explained the labels are difficult to understand and interpret in the short time consumers use to decide what to buy. The Nutrition Facts panel, which lists percentages of the daily value of several nutrients, took consumers more time to understand and led to nutrition choices that hardly differed from chance. “One product may be low in fat, but high in sugar, while another product may be just the opposite,” wrote Peter Helfer, lead author and McGill doctorate student in psychology and neuroscience. “Nutrition Facts labels can highlight nutrition conflicts, but fail to resolve them.”

Soil health takes holistic view of soil’s functions

Page 11 • Monday, February 2, 2015 • FarmWeek

BY KAY SHIPMAN FarmWeek

Soil health supports an all-inclusive view of soil’s biological, chemical and physical conditions, and offers farmers short- and long-term benefits, Eileen Kladivko, a Purdue University agronomy professor, told Illinois farmers attending a Conservation Cropping Seminar in Sycamore last week. “We can change soil, but not what nature gave us,” Kladivko said with a smile. “We have control over agronomic properties ... (but) we will not convert shallow bedrock soil into prairie soils.” Farmers pay attention to their soils’ chemical properties by testing soil samples and also Eileen Kladivko take note of the physical properties related to its ability to absorb and retain water, and provide a suitable root zone. However, fewer farmers give much thought to their soils’ biological functions that involve microbes, bacteria, fungi, insects and worms. Some farmers and their advisors may be skeptical of “soil health” because of its buzz-

word status and overreaching claims offered by some in the agricultural community, according to Kladivko. “I’m not suggesting we do things like grandpa did, but to re-apply those long-held principles in our modern cropping systems,” Kladivko explained. Cover crops hold promise as a way to improve soil health by supporting good physical properties and conditions for microbes, bacteria, worms and other biological factors. “If we improve the resilience of cropping systems by having living, growing plants (for longer periods during the year), we’ll make better use of our resources,” Kladivko said. Cover crops also can help reduce year-toyear variability in soil, she added. But cover crops become part of a farm management system that needs to be adapted to individual farms, and new cover crop growers encounter a learning curve that requires “doing your homework,” according to Kladivko. Kladivko and a colleague estimated widespread use of cover crops in Illinois, Iowa, Indiana, Minnesota and Ohio may significantly reduce nitrogen runoff, perhaps by 15 percent.

Pigs benefit from corn wet milling co-products

FarmWeek â&#x20AC;˘ Page 12 â&#x20AC;˘ Monday, February 2, 2015

Livestock farmers became familiar years ago with corn co-products produced by the biofuels industry, such as distillers dried grains. But corn wet milling processes also produce co-products suited to pigs. Hans Stein, a University of Illinois animal science researcher, recently conducted two experiments using corn and four wet-milling co-products â&#x20AC;&#x201D; high-fat corn germ (HFCG), corn bran, liquid corn extractives (LCE) and LCE added to corn germ meal (CGM-LCE). The experiments focused on energy concentration and amino acid digestibility. Stein explained HFCG is a high-fat product (30 percent fat), which compares to only 3 percent fat in corn. Corn bran is high in fiber but low in fat. Liquid corn extractive is a liquid product usually not used as feed alone, but often added to corn gluten feed. During the experiments, the researchers added LCE to corn germ meal to create a new product from the corn processing stream that could be used as feed. Corn contained 3,986 kilocalories of digestible energy (DE) per kilogram of dry

matter, more than any of the other ingredients. The digestible energy in the remaining products proved

metabolizable energy (ME) at 3,871 kcal/kg dry matter followed by HFCG (3,336 kcal/kg), CGM-LCE (3,272

â&#x20AC;&#x2DC;They are all lower energy than corn, but that doesnâ&#x20AC;&#x2122;t mean we canâ&#x20AC;&#x2122;t use them ... .â&#x20AC;&#x2122; â&#x20AC;&#x201D; Hans Stein similar â&#x20AC;&#x201D; HFCG (3,631 kcal/kg), LCE (3,485 kcal/kg), CGM-LCE (3,567 kcal/kg) and corn bran (3,205 kcal/kg). Corn also contained the greatest concentration of

U of I animal science researcher

kcal.kg), LCE (3,102 kcal/kg) and corn bran (3,077 kcal/kg). â&#x20AC;&#x153;The lower concentration of DE and ME in the corn coproducts was not surprising because all these co-products

have a much higher fiber concentration than corn,â&#x20AC;? Stein said. â&#x20AC;&#x153;They are all lower energy than corn, but that doesnâ&#x20AC;&#x2122;t mean we canâ&#x20AC;&#x2122;t use them because there are some circumstances when we want lower energy, such as in diets for gestating sows. We donâ&#x20AC;&#x2122;t want gestating sows to overeat high-energy products so it is good to have a highfiber ingredient.â&#x20AC;? Amino acid (AA) digestibility was reduced with the corn co-products compared with corn. Total AA digestibility was greater than 75 percent in corn with CGM-LCE, HFCG, and LCE

was greater than 50 percent. The AA digestibility in corn bran measured less than 50 percent. â&#x20AC;&#x153;We observed that there are reductions in amino acid digestibility in all the coproducts compared with corn. That will require using more soybean meal or another protein source if any of these ingredients are used,â&#x20AC;? Stein explained. With the results of this research, Stein said nutritionists can now formulate diets using co-products from the wet milling industry. Archer Daniels Midland Company provided funding for the study.

cially years 1924 and 1928, will be gladly accepted. Donations may be sent directly to IFB Archives, ATTN: Allison, 1701 Towanda Ave., Bloomington, Ill. 61701.

As IFB prepares for its centennial celebration, look for more History Mysteries and ways you can help piece together puzzles from our past.

Help needed to find missing IAA Records Ready to put your best detective skills to the test? The IFB Family of Companies Archives needs your help. For nearly 94 years, Illinois Farm Bureau has been committed to consistent and direct communication with its members. In the early

1920s, the IAA Record launched as a quarterly publication to keep farmer members informed about legislation, Farm Bureau activities, commodity news and special events. Within a few years, publication increased to once a month. The IFB Family of Companies Archives needs a complete collection of these important pieces of our history. Donations of the IAA Record from 1921-30, espe-

Governmental Affairs Leadership Conference Feb. 25th-26th, 2015 &URZQH 3OD]D +RWHO 6SULQJÂżHOG ,/ Please contact your County Farm Bureau for more information and to register.

#GALC15

Page 13 • Monday, February 2, 2015 • FarmWeek

OND — Farm Bureau will host a luncheon farm bill session beginning at 9 a.m. Feb. 16 at Saint Lawrence Catholic Posch Center. Call the Farm Bureau office at 664-3100 for reservations by Feb. 10. UREAU — Farm Bureau will host Stroke Detection Plus screenings from 9 a.m. to 3:30 p.m. Tuesday at the Farm Bureau office. Cost is $100 for four tests. Call 877-732-8258 for an appointment. • Farm Bureau will host a 2015 trip informational meeting at 1 p.m. Feb. 10 at the Farm Bureau office. Trips will include Ireland and Scotland July 20-31 and Country Christmas Nov. 29-Dec. 3. • Farm Bureau is offering a summer 2015 internship to an ag student. Call the Farm Bureau office at 875-6468 for a list of internship duties, application or more information. Application deadline is Feb. 27. • Foundation scholarships are available to students who are Bureau County Farm Bureau members or a dependent of a member and are pursuing a degree in agriculture. Call the Farm Bureau office at 875-6468 for more information. Application deadline is Feb. 27. • Farm Bureau will host a farmland lease seminar at 6:30 p.m. Feb. 25 at the Farm Bureau office. Tim Harris, Capital Ag Property Services, and Gary Schnitkey, University of Illinois Extension, will speak. Call the Farm Bureau office at 875-6468 for reservations by Feb. 18. HRISTIAN — Foundation and Young Ag Leaders 2015 scholarship applications are available at {christiancofb.com}. Application deadline is March 3. Call the Farm Bureau office at 824-2940 for more information. OOK — Farm Bureau will host an advanced beekeeping workshop from 8:30 a.m. to 3:30 p.m. Feb. 21 at the Farm Bureau office. Cost is $40 for Farm Bureau or Cook DuPage Beekeepers Association members and $70 for nonmembers. Call the Farm Bureau office at 708354-3276 or email member shipdebbie@cookcfb.org to register by Feb. 17. For more information visit {cookcfb. org/buy-local/programs}. FFINGHAM — Farm Bureau will host an on-the-road seminar at 7 p.m. Tuesday at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will speak. Call the Farm Bureau office at 342-2103 for

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reservations by Tuesday. ULTON — Farm Bureau will host an Agriculture in the Classroom (AITC) dinner from 4 to 7 p.m. Feb. 13 at the Farm Bureau office. Cost is $8 for adults, $4 for children 5 to 10 years and free for children under 5 years. All proceeds will benefit the Fulton County Ag Literacy Coalition. Call the Farm Bureau office at 5473011 for tickets or more information. • Farm Bureau’s annual meeting dinner will be at 5:45 p.m. Feb. 9 at Kemper Banquet Hall in Canton. Wayne Ridle, AITC bike ride participant, will speak. Cost is $10. Call the Farm Bureau office at 5473011 to obtain tickets by Feb. 9. ANCOCK — Farm Bureau will host a cover crop meeting at 10 a.m. Tuesday at the Farm Bureau office. Dean Oswald, regional cover crop specialist, and local Soil and Water Conservation District and Natural Resource Conservation Service staff will speak. Call the Farm Bureau office at 357-3141 to register. • Farm Bureau will host a dinner insurance meeting for young farmers at 6 p.m. Feb. 12 at Lake Hill Winery. Hancock County COUNTRY Financial agents will discuss life, disability and long-term care insurance. Call the Farm Bureau office at 357-3141 for reservations by Feb. 11. ANKAKEE — Farm Bureau will co-host a farm bill session at 8 a.m. Thursday at the Hilton Conference Center in Kankakee. Doug Yoder, IFB senior director of affiliate and risk management, and Gary Schnitkey, U of I Extension, will speak. Call the Farm Bureau office at 932-7471 to register by Tuesday. EE — Farm Bureau will co-sponsor a dinner estate planning seminar at 5:30 p.m. Feb. 11 at Candlelight in Rock Falls. Rick Morgan, COUNTRY Financial, and Dan Hawkins, Ward, Murray, Pace and Johnson, will speak. Call the Whiteside County Farm Bureau office at 815772-2165 for reservations. • Young Leaders invite members age 18 to 35 to play wallyball at 4 p.m. Feb. 21 at Plum Hollow in Dixon and go to dinner afterwards. Call the Farm Bureau office at 857-3531 for reservations by Feb. 18. • Young Leaders will host a dinner and legislative update at 6 p.m. Feb. 24 at Prime Quarter in Princeton for members 18 to 55 years. Chuck Spencer, GROWMARK, will speak. Call the Farm Bureau office at 857-3531 for reservations by Feb. 17. • Farm Bureau issues a 100 Member Challenge in honor of

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its 100th year anniversary. Sign up five or more M members and receive $100. Completed membership applications and dues must be received at the Farm Bureau office between now and Dec. 31 to be eligible for prize money. • Farm Bureau is seeking photos or memorabilia for its 100th anniversary celebration this summer. Bring items to the Farm Bureau office. Items will be returned after the event. Call the Farm Bureau office at 857-3531 for more information. ADISON — Farm Bureau’s annual meeting dinner will be at 6:30 p.m. Friday at the American Legion Hall in Edwardsville. Call the Farm Bureau office at 656-5191 for reservations. CDONOUGH — Foundation raffle tickets are available at the Farm Bureau office, Martin Sullivan or at the Western Illinois University Ag Mech Show. Proceeds will benefit AITC. Grand prize is a John Deere pressure washer. Tickets are $5 for one or $20 for five. ERCER — Foundation scholarship applications are available at {mercercfb.org} or at the Farm Bureau office. Applicants must be admitted to a post-secondary school during 2015-16, be a member of the Mercer County Farm Bureau or a dependent of a member by Jan. 1, 2015. Nine, $1,000 scholarships will be awarded. Application deadline is March 27. • Farm Bureau will co-host a luncheon farm bill session at 11:30 a.m. Feb. 13 at Aledo VFW. Farm Service Agency staff will present. Call the Farm Bureau office at 821-2991 by Feb. 11 for reservations. ONTGOMERY — Applications are available for six, $1,500 foundation scholarships. Applicants must be a Montgomery County Farm Bureau member or a dependent of a member majoring in an agrelated field of study and entering college during the 2015-16 school year. Visit {montgomery countyfb.com} for an application. Application deadline is March 9. • Prime Timers will host a luncheon and meeting at noon Feb. 18 at the Farm Bureau office for members 55 and older. County Melodies will entertain. Cost is $9. Call the Farm Bureau office at 532-6171 by Feb. 13 for reservations. • Farm Bureau will host meetings with attorneys from Byron Carlson Petri & Kalb, LLC, and the Silver Lake Group on the Dakota Pipeline easement, Syngenta corn litigation and Ameren vegetative

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expansion easements from 4:30 to 7:30 p.m. Feb. 10 at the Farm Bureau office. Call the Farm Bureau office at 5326171 for more information. EORIA — Farm Bureau will host a luncheon tiling/cover crop program at 10:30 a.m. Feb. 20 at the Farm Bureau office. Matt Thompson, ThompsonMcCoy Earth Moving, and Pete Fandel, Illinois Central College, will speak. Cost is free for members and $10 for nonmembers. Call the Farm Bureau office at 686-7070 for reservations by Feb. 17. • Farm Bureau will co-sponsor a John Roach market seminar at 8:30 a.m. Tuesday at Exposition Gardens in Peoria. Call the Farm Bureau office at 686-7070 for more information. ERRY — Farm Bureau will sponsor a charter bus trip to the National Farm Machinery Show in Louisville, Ky., leaving at 5:30 a.m. Feb. 12 from the Farm Bureau office. Cost is $55. Call the Farm Bureau office at 3579355 for reservations by Thursday. OCK ISLAND — Farm Bureau will host a farm bill session at 10 a.m. Feb. 9 at Camden Center (Milan Community Center). Doug Yoder, IFB senior director of affiliate and risk management, and Steve Sim, COUNTRY Financial, will speak. Call 764-3116 for reservations by Wednesday. ERMILION — Farm Bureau will host Luau for Learning trivia night with a Jamaica My Weekend theme at 7:30 p.m. Feb. 28 at Danville Knights of Columbus Hall. Registration is $100 per table of eight. Proceeds will benefit AITC. Registration forms are available at {vcfb.info}. ASHINGTON — Farm Bureau will sponsor a bus trip to the National Farm Machinery

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Show in Louisville, Ky., leaving at 6 a.m. Feb. 12 from the Farm Bureau parking lot. Cost is $55. Call the Farm Bureau office at 327-3081 for reservations by Thursday. AYNE — Farm Bureau will sponsor a bus trip to the National Farm Machinery Show in Louisville, Ky., Feb. 12. Cost is $20 for members and $40 for nonmembers. Call the Farm Bureau office at 842-3342 for reservations by Friday. Seats are limited. •The foundation will offer six, $500 scholarships to Wayne County youth majoring in an ag-related field of study. Applications are available at {waynecfb.com}. Application deadline is Feb. 28. • Applications are available at {waynecfb.com} for the Young Leader Committee $500 scholarship. Applicants must be a Wayne County student majoring in an ag-related field of study. Application deadline is Feb. 28. HITESIDE — Farm Bureau will cosponsor a dinner estate planning seminar at 5:30 p.m. Feb. 11 at Candlelight in Rock Falls. Rick Morgan, COUNTRY Financial, and Dan Hawkins, Ward, Murray, Pace and Johnson, will speak. Call the Farm Bureau office at 772-2165 for reservations by Feb. 9. • The Foundation is accepting applications for two summer intern positions. Interns are responsible for AITC summer programs. Internships are open to current college students and high school seniors graduating spring 2015. Preference will be given to applicants with a farm background and/or pursuing a degree in an ag-related field of study. Call the Farm Bureau office at 772-2165 or email matt. wcfb@frontiernet.net for more information. Application deadline is Feb. 27.

Hit the road for motor vehicle seminars

Thirteen county Farm Bureaus will host on-the-road seminars in February and March 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. February meetings include: • 7 p.m. Tuesday at Effingham County Farm Bureau, Effingham; • 9 a.m. Feb. 11 at Mason County Farm Bureau, Havana; • 2 p.m. Feb. 19 at Marshall-Putnam County Farm Bureau, Henry; and • 6:30 p.m. Feb. 19 at Bureau County Farm Bureau, Princeton. Attendees should contact the appropriate county Farm Bureau to register.

FarmWeek • Page 14 • Monday, February 2, 2015

Can oil prices continue to fall? Study shows value of high quality soybeans

The price of oil has lost more than half of its value since June 2014. This comes after nearly five years of consolidation between $80 and $105 per barrel. A combination of weak demand growth in oil, strong supply growth and OPEC’s decision to maintain production despite a global oil surplus has oil prices under pressure. Economic activity is a strong indicator of demand for energy products. Global energy demand growth underperformed expectations in 2014. Weak growth is reflective of the recession-stricken economies of Japan and Russia, dismal economic activity from the Eurozone and China reporting the slowest growth in 25 years. Because of the complexities of major economies and the length of time it takes to reverse economic trends, don’t expect a global demand growth to surge anytime soon. On the supply side, global production growth has been strong. U.S. producers have been the beneficiary of strong profit margins thanks to Adam Crouch oil priced well above break-even levels. U.S. production averaged 9.132 million barrels per day in 2014, up 3 million barrels per day from 2012. As a result, the U.S. relies less on foreign oil. Imports averaged roughly 3 million barrels per day less in 2014 than in 2006. The barrels that used to be imported into the U.S. don’t just disappear. They are displaced into the world market to help free supply elsewhere. The world market is also finding supply from countries whose production hasn’t been dependable in the past due to war and geopolitical unrest. As for OPEC, its decision not to cut production is being led by Saudi Arabia and its Gulf allies. Since the 1970s, OPEC utilized production cuts to inflate the price of oil. What they didn’t realize was cuts to maintain higher prices would actually benefit non-OPEC producers. Inflated prices meant inflated profits, which allowed producers to heavily reinvest to improve production and efficiency. As a result, OPEC’s market share has decreased by 10 percent since the 1970s. OPEC’s new strategy takes aim at higher-cost producers by maintaining production in the face of falling prices. We should expect prices to remain under pressure until we start seeing production cuts. It all boils down to who can withstand lower prices the longest. BY ADAM CROUCH

Adam Crouch serves as GROWMARK’s associate energy analyst. His email address is acrouch@growmark.com.

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$56.00 $45.46 40 lbs. (cash) $66.00-$79.00 $73.21 Receipts

This Week 71,413 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 65,646

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $66.06 $66.22 -$0.16 $48.88 $49.00 -$0.12

Farmers often hear that higher quality soybeans could generate more value. A new soy checkoff-funded study shows just how much more. Illinois growers, for instance, could pocket an added $11.16 per acre due to increased value of meal, oil and hulls. The price of soybeans depends on the combined value of soybean meal, oil and hulls, a measurement known as the estimated processed value (EPV). The study, conducted by Centrec Consulting Group LLC, shows how EPV increases when farmers increase the protein content in their soybeans. Increasing protein content by just 1 percent when yield and oil levels remain the same,

boosts a crop’s value per acre. The checkoff conducted the study in 13 states where EPV increased from $7.70 to $12.96 per acre. Minnesota ($12.43) and Iowa ($12.33) posted the highest EPV increases. Farmers in regions with higher quality soybeans receive better prices than those in areas with lower protein content because higher quality soybeans create more demand. That brings processors more value and allows them to pay more to farmers. Seed selection provides the key to growing high quality soybeans. Farmers can ask their seed dealer or visit {growsoybeanvalue.com} to find varieties that will produce greater protein without sacrificing yield.

Human gut may play role in future biofuels

Scientists have scoured cow to use biochemical approaches enzymes that break down a to confirm the hypothesis that complex plant fiber comporumens and termite guts for microbes in the human gut can nent more efficiently than the microbes that can efficiently most efficient microbes found break down plant cell walls for digest fiber, breaking it down in the cow rumen, the the production of next genera- into simple sugars in order to researchers report. ferment them into nutrients tion biofuels, but some of the The study points to human best microbial candidates actu- that nourish human cells. microbes as a ally may reside potentially in the human potent source of lower intestine. ‘In addition to finding microbes in the cow microbes that Research rumen and termite gut, it looks like we can can aid in biofuperformed with cows led actually make some contributions ourselves.’ els production, Cann said. University of “In addition Illinois sciento finding tists to explore — Isaac Cann U of I animal sciences and Institute for Genomic Biology professor microbes in the human cow rumen and microbes. U of termite gut, it looks like we can I animal sciences and Institute These findings have signifiactually make some contribucance not only for human for Genomic Biology profestions ourselves,” he said. “And sor Isaac Cann led the analysis health but also for biofuels our bugs seem to have some production, since the same with colleagues Roderick enzymes that are even better sugars can be fed to yeast to Mackie, an animal sciences professor, and doctoral student generate ethanol and other liq- than those in the cow rumen.” To read more about the uid fuels. Dylan Dodd, now at Stanford research, visit {pnas.org/con The human microbes University. tent/111/35/E3708.full}. appear to be endowed with Their study marks the first

U of I Explore ACES scheduled March 13-14

High school students can learn more about the University of Illinois’s College of Agricultural, Consumer and Environmental Sciences during Explore ACES. Activities will run from 9 a.m. to 3 p.m. March 13 and 9 a.m. to 1 p.m. March 14 at various buildings on the Urbana campus. The student-run event introduces both prospective and admitted students to ACES facul-

ty, academic offerings and student organizations. More than 100 exhibits showcase academics, research and student development opportunities. Students can also learn about study abroad programs, how ACES graduates are using their degrees and tips on applying for more than $2.5 million in scholarships within the College of ACES. For more information, visit {explore aces.org}.

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

Steers Heifers

This week $159.48 $159.01

Prev. week $159.91 $160.00

Change -$0.73 -$0.99

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week $211.69 $220.45 -$8.76

Lamb prices Negotiated, wooled and shorn, 112-168 lbs. for 139.65-171.20 $/cwt. (wtd. ave. 153.60) ; wooled and shorn 185-194 lbs. for $133/cwt.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/22/2014 55.9 9.7 34.9 1/15/2014 55.9 11.5 29.4 Last year 74.0 14.6 29.0 Season total 1312.3 539.2 562.3 Previous season total 1114.9 799.1 533.1 USDA projected total 1760 925 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Illini Foresters Colin Nemec, left, a senior in Natural Resources and Environmental Sciences (NRES), and Liz Miernicki, an NRES junior, show their sawing skills with help from Vince Conte, an NRES junior, and Jennifer Woodyard, an NRES sophomore, both seated on log, during an ExplorACES demonstration last year outside the University of Illinois’ Turner Hall. (Photo by David Riecks, U of I information technology and communication services)

Corn Strategy

Robust soybean exports to continue

No matter the size of the output, the one inescapable reality in the soybean trade is the exceptional demand for protein. Everyone is well aware of the persistent surge in protein demand in China where oilseed consumption has increased an average of 5.9 percent since 2000. But outside of the U.S. and China, consumption has increased at an average of 3.5 percent during that same time. Maybe more importantly, the demand base outside of the U.S. and China is twice as large as China’s. The average tonnage increase is currently 1 1/2 times as large as it is for China. The production of oilseeds, other than the U.S., Brazil and Argentina, is only going up about half as fast as the increase in the demand from the same countries. The demand not only from China, but also the rest of the world, continues to put pressure on the three major producers to produce and export soybeans. Exports from U.S., Brazil and Argentina last year, and so far this year, have been significantly higher than the 2012-13

market year. Exports that year were sharply curtailed after problems cut 2012 production in both Brazil and the U.S. Exports started to recover in the spring of 2013 with the larger South American crops, but it wasn’t until the larger 2013 U.S. crop that higher exports became firmly entrenched. And that higher offtake from the three major exporters continues to this day. Furthermore, we have no reason not to expect the export demand placed on the three primary producers to abate anytime soon. First, end users are still in the process of rebuilding inventories that were depleted by smaller 2012 crops. That’s not likely to be completed until later this year. Second, exports will need to remain robust to fill expanding demand that should be every bit as good as the average during the last few years with prices back at more reasonable levels. Even though there’s a looming shift in exports from the U.S. to South America, the U.S. should continue to experience a relatively robust export pace. Logistical issues will likely keep Brazil and Argentina from fully meeting the short-term world protein demand. It would surprise us if the U.S. soybean export forecast is not revised upward another 20 to 40 million bushels.

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ü2014 crop: We are still holding some 2013 crop for expected long-term improvement. Good marketing opportunities may be limited in the short term. We suggest only making needed sales. If you need to sell, we’d recommend a basis contract to secure cash, but still leaving the pricing open into spring. ü2015 crop: With such a long time frame to sell this crop, we see little reason to be pricing new crop at these levels. Some of you may consider buying some out-of-the money call, new-crop call options over the next two to four weeks that you can make cash sales against later this spring/summer. vFundamentals: Corn prices continued their slide during January, not due to market specific news, but due to weakness in the other grains and the overall disinflationary attitude. Corn demand remains steady in both the domestic and export markets. And even though USDA is projecting smaller exports this year, sales are keeping pace with last year, with shipments remaining a little ahead.

Page 15 • Monday, February 2, 2015 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: Prospects for a big South American crop, along with comfortable supplies here, continue to weigh on old-crop prospects. Better opportunities to make sales should come after the shortterm cycle bottoms. ü2015 crop: Prices have dropped to a level at which downside risk has gotten small. We have no interest in pricing 2015 crop. The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: There’s some growing disagreement about the size of the Brazilian crop. Most of the crop watchers are still projecting a 95 million metric ton (mmt) crop. But January’s less-thannormal rainfall totals across the northern producing regions are causing a few to drop their expectations back near 91 mmt. Still, that’s more than last year’s 86.1 mmt. crop. Argentine expectations continue to hover around 55

mmt. Our export demand remains robust, both sales and shipments.

Wheat Strategy

ü2014 crop: Old-crop sales should be 75 percent complete. Wait for better opportunities for new sales recommendations. ü2015 crop: New-crop wheat should be 25 percent priced. Wait to make catch-up sales if you are not sold up to the recommended level. vFundamentals: Managed money is now net-short on their wheat position. Fund traders are betting against the grain because they perceive

global stocks as abundant and demand tenuous. Record world wheat production combines with large carryover stocks to outstrip consumption, leaving a 196 mmt ending supply. The world wheat trade is active, but the U.S. is having trouble competing on the big deals, especially with the dollar at a 10-year high. Despite all of the headwinds, wheat prices maintain plenty of upside potential. Usage is likely to improve into the end of the marketing year. Futures are oversold and not entirely reflecting the probability of smaller stocks in 2015-16.

FarmWeek • Page 16 • Monday, February 2, 2015

A WORTHY CAUSE

Farmers’ role in safe food supply The following excerpts come from Sean Arian’s comments during the final round of the American Farm Bureau Federation Young Farmers and Ranchers Discussion Meet in San Diego. His topic was: Should farmers and ranchers be held liable for possible foodborne illnesses when the food served can be traced back to their farms and ranches?

parent about this?” This (discussion meet) is an opportunity for us to challenge the thought process. An AFBF policy states we believe a farmer should not be responsible or liable for any foodborne illness that may be believed as a long-term health impact for the person that consumed it. In the mind of public perception, is this really where we need to be, or do we need to challenge that mindset a bit and say, “Let’s talk about the things we’re implementorty-eight miling. And if a farmer is lion Amerinegligent, then certainly cans will we believe that they become affected by a should be responsible. foodborne illness. The And if they’re not, then food chain can be quite that goes down the food long, depending on the chain that all of us talked product in question. Sean Arians about through the retailFarmers have an obligaers, the processors, or the mom or dad who tion to provide a safe food supply along with cooked the food.” processors, wholesalers and retailers, restauWith foodborne illness and liability, we in rants and even consumers. Failure on anyone’s Farm Bureau and as an industry can be proacpart should come with responsibility. We have to ask a question about liability. Is it tive. For years, we’ve reacted to consumer perception about how we’ve handled our livestock strict liability or is it negligence on behalf of and what we do with our crops and biotechnolthe farmer? That’s where we have to draw the line. Negligence gives us a little bit of leeway in ogy. Certainly, we’ve climbed a mountain to try and overcome those. our operations, according to the law. This provides us that opportunity to take an We talk about government regulations of active role from our grassroots organization of products. Beef and poultry producers must our local county Farm Bureaus not only to eduhave a USDA inspector on site in order for a (processing) plant to operate. But in the case of cate farmers about best practices but also our leafy vegetables, a cause of 46 percent of food- consumers. Illinois Farm Bureau has an individual who manages external affairs with Walmart borne illnesses, where are the inspectors? and grocery stores, and brings people in so we During a Young Farmers and Ranchers trip to a Florida strawberry farm, I found it interest- understand what questions the food chain has because they don’t have ing that the package I buy in the grocery all the answers. store is labeled so it can be traced back to Arians in action By us taking a proacthe person who picked it. And once it View Sean Arians’ win- tive approach, we can goes into a refrigeration plant, they can ning Final Four National get ahead of this issue trace it there. Those are the types of Young Leaders and and determine that things that we need to make sure that Ranchers Discussion farmers are not liable. If we’re supplying resources as Farm they are negligible, that’s Bureau and an industry, that can help our Meet at {annualconven tion.fb.org}. a different story. But we producers. Go to “annual conven- have a responsibility as a Think about the 2011 Food Safety and tion” on the right side farmer to supply safe Modernization Act — that’s sweeping and scroll down to food. change. But as we look at how we reguFarmers have a tradilate industries that process beef, poultry, “YF&R Final Four.” tion of producing the pork and vegetables, we already have an safest, most abundant food supply in the world. FDA (Food and Drug Administration) that is Be transparent about what we do. Have converunderfunded. In 2011, it inspected 11 percent of warehouses and packing plants the agency is sations and educate people, and we will be Farm Bureau proud and agriculture proud to responsible for. continue to be a world leader in safe food proNow we’re asking them (FDA) to create duction. this Food Safety Modernization Act. I think that opens the door for Farm Bureau, as a Sean Arians, a Woodford County Farm Bureau Young representative of our industry groups, to go Leader and 2011 Illinois Farm Bureau Young Leader the table and help an underfunded agency Committee chairman, won the recent AFBF Young start to come up with ideas, and have these Farmers and Ranchers Discussion Meet. conversations, such as “how can we be trans-

Leathernecks cropping up in agriculture fields

It is a great day to be a Leatherneck! It is always nice to have an opportunity to talk about some of the good news happening around the state of Illinois when all we hear about is the budget crisis, dropping commodity prices, tuition hikes and increasing prices of inputs. In the Western Illinois University (WIU) School of Agriculture, we have seen a 37 percent increase in enrollment over the last decade, which is certainly an objective we have been trying to achieve. Therefore, we were recognized on campus as a “SignaANDY ture Program” BAKER in April 2013. The institution selected 12 degree programs out of 66 undergraduate degree programs to be included as “Signature Programs” based on enrollments, internships, outreach and employment opportunities. This recognition has led to several significant events. In January 2014, WIU released four major projects that would be funded in FY2014. One of the selected projects was the construction of a greenhouse facility to be built at the university farm for teaching and research. The project includes two, 16-by48 foot greenhouses to be constructed, and four additional greenhouses as well as a head house to complete the greenhouse complex in the near future. We held our ribbon cutting ceremony for the two new greenhouses Dec. 19. University administration was willing to support the initial phase of construction and felt the additional phases could be built through collaborative donations. This fall, during the construction process, ADM announced a $100,000 commit-

ment for the construction of the next phase. These funds will be used to build a third greenhouse in FY2016. We have started building collaborative relationships with other organizations to complete the entire greenhouse complex in the near future. This opportunity has allowed us to search for a new sustainable horticulture position this year. It has also allowed us to apply for externally funded grants that require a research facility that would extend the growing season. Another collaborative relationship has been with Munson Hybrids in Galesburg. Earlier this year, Munson graciously donated an unmanned aerial vehicle (UAV) to the school of agriculture. This donation aligned itself immediately to our search for a new faculty member in precision agriculture. We are currently searching for a new faculty member who will revise our curriculum to include the newest innovations in agriculture technology. We certainly hope to have this faculty member on board for the fall 2015 semester. We are very excited about the new possibilities of updating our curriculum through new faculty searches. One thing I have learned over the last 18 months is that Leathernecks are everywhere and are doing great things in the field of agriculture. We are very proud of our heritage as well as our future. Our students continue to achieve new levels in academics and competitive events. We are also hosting our 2nd Alumni Event Feb. 7 at 6 pm at the Multicultural Center on campus. So, for all those Leathernecks out there, please join us for this social event. For more information, please contact us at 309-2981080 or visit our webpage at {wiu.edu/ag}.

Don’t trade soil for bushels Editor: In the last issue of FarmWeek and other recent ag publications, I have noted that researchers at Illinois and California have reported no-till farming does not yield as well as conventional tillage. That is very old news. When the advocacy of no-till started in the late 1960s, yield, as important as it is, was not the goal. Soil conservation was. Fall plowing, a universal practice, was causing the loss of intolerable tons of topsoil just to gain a few extra bushels. It was not a bargain. After long

years of effort and experience, improved varieties and machinery, no-till has been perfected. Its adoption is worldwide and its results are impressive. Billions upon billions of tons of topsoil have been saved and yields are impressive enough. To go back to the old practice of conventional tillage would cause too much soil loss. Farmers are astute enough to know that losing tons of soil for a few more bushels is not wise husbandry. Too many researchers have no on-farm knowledge. MIKE SAGER Eureka

Andy Baker serves as director of WIU School of Agriculture.

Letter to the editor