FarmWeek February 4 2013 by Illinois Farm Bureau

buyers From Schnucks and Walmart will attend a Meet the Buyers event at Heartland Community College in Normal in late February. .................................2

ILLINoIs FArm bureAu Young Leaders often are looking to improve the farmland they have rather than expand at today’s high land prices. ...................................6,7

oNe oF ILLINoIs FArm Bureau’s national legislative priorities is to build demand for renewable fuels and defend their place in the domestic energy portfolio. ...11

Monday, February 4, 2013

Two sections Volume 41, No. 5

January rains soak Illinois; forecast encouraging BY DANIEL GRANT FarmWeek

The soil moisture situation in Illinois improved significantly last month as aboveaverage rainfall soaked much of the state. Illinois in January received an average of 3.8 inches of precipitation, which is about twice as much as the state typically receives for the month, according to Jim Angel, state climatologist with the Illinois State Water Survey. In fact, precipitation last month totaled more than

FarmWeekNow.com Listen to Jim Angel’s comments about recent weather across Illinois at FarmWeekNow.com.

what Illinois received last June (1.6 inches) and July (1.5 inches) combined. “We had below-average snowfall but, actually, aboveaverage precipitation. Most fell as rain,” Angel told FarmWeek. “The end result is this is good news as far as soil moisture, stream flows, and lake levels. We’re chipping away at the drought conditions.” Precipitation last month ranged from 4 to 6-plus inch-

‘This is good news as far as soil moisture, stream flows, and lake levels. We’re chipping away. at the drought conditions .’ — Jim Angel State climatologist

es in Southern Illinois, 3 to 5 inches in Central Illinois, and 2 to 3 inches in Northern Illinois. Minor flooding even was reported along the Kaskaskia and Little Wabash Rivers. “We welcome this rain,” Eric Apel, ag meteorologist with Mobile Weather Team, said last week during a rainy day at the MID-CO Commodities winter outlook meeting in Bloomington. “Central and Southern Illinois, in particular, made up quite a bit of moisture since last fall.” Snowfall totals last month ranged from 10 inches in Northwestern Illinois and 3 to 6 inches across Central Illinois to nothing measurable in parts of Southern Illinois.

The temperature averaged about 4 degrees above normal for January, despite a blast of artic air last week that dropped temperatures by 60 degrees or more in just two days. Apel predicted temperatures will average below normal in much of the Midwest for the rest of winter. “It can still snow in February and March,” he reminded. Apel also predicted more precipitation this winter and spring with an increased chance of more severe weather this spring. “These pressure patterns that develop in winter tend to stick around into spring,” Apel said. “I look for periods

of wet weather the rest of this winter and into spring.” Apel’s forecast was based in part on neutral El Nino/La Nina readings in the Pacific Ocean he said he believes will extend into summer. “As long as El Nino/La Nina is neutral, I look for a more normal weather pattern

(this year),” he said. “We’ll still have hot and dry periods, but not 16 straight days above 95 degrees like we saw last year.” La Nina often is associated with below-average precipitation in the Midwest. A La Nina was in effect last year and in 1988.

Congress approves increase in federal debt ceiling Periodicals: Time Valued

BY MARTIN ROSS FarmWeek

The president was expected to sign off on short-term suspension of the federal debt ceiling, according to Illinois Farm Bureau Vice President Rich Guebert Jr., addressing a potentially crucial economic concern. The Senate Thursday voted to raise the $16.4-trillion debt limit to continue paying the nation’s bills through May. The measure passed after Republican senators failed to sell amendments that would tie major federal spending cuts to any increase in the debt limit. The next budget step is debate over efforts to head off budget “sequestration” — deep, automatic spending cuts that kick in beginning March 1 unless Congress intervenes.

Guebert argued debt ceiling action is “very important,” impacting not only the U.S.’ global credit rating but also domestic markets and possibly even monetary policy. “This could be pretty serious — we have never Rich Guebert Jr. been there,” he said. “If you want to compare this to the states, there have been serious ramifications when their credit ratings have been lowered. “If the federal credit rating is lowered, what impact would that have with other countries, relative to the U.S. dollar? The U.S. dollar is pretty important to trade and to our exports.” Last week, U.S. Rep. Aaron Schock, a

FarmWeek on the web: FarmWeekNow.com

Peoria Republican, lamented Illinois’ downgrade from an A to an A-minus credit rating by Standard and Poor’s Ratings Service. S & P cited the state’s inability to tackle looming fiscal challenges. Schock maintained the latest downgrade will result in “more of Illinoisans’ tax dollars being spent on higher interest rates instead of in our classrooms, for health care, or building infrastructure.” AgriVisor analyst Bridget Chinowth noted a “strong correlation anymore between the commodity markets and all these external factors” such as debt limit debate. “On a daily basis, we look at the value of the dollar, as the direction of the dollar has a strong significance for our exports,” Chinowth said in a FarmWeek/RFD Radio interview.

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

FarmWeek Page 2 Monday, February 4, 2013

Quick takes POTASH LAWSUITS SETTLED — Three of the world’s largest producers of potash last week agreed to pay $97.5 million to settle lawsuits that alleged pricing violations. Potash Corp, Mosaic Co., and Agrium Inc. all denied their pricing of potash violated U.S. antitrust laws, but they agreed to settle and pay fines to avoid the costs of fighting the suits. The lawsuits were filed by chemical suppliers and ag sales firms against the potash producers. They alleged that large potash producers since 2003 conspired to fix the price of potash sold in the U.S. The three companies involved in the lawsuits, along with two others, account for two-thirds of the world’s potash production. MILC PAYMENTS COMING — USDA last week announced it will begin issuing payments Tuesday to dair y far mers enrolled in the Milk Income Loss Contract (MILC) program. MILC payments are triggered when the Boston Class I milk price, after adjustment for the cost of dairy feed, falls below $16.94 per hundredweight. MILC payments are calculated each month using the latest milk price and feed costs. The 2008 farm bill extension provides the continuation of the MILC program through Sept. 30. All dairy producers’ MILC contracts were automatically extended to that date so eligible producers do not need to re-enroll in the program. STATE TO BUY MORE PORK — The State of Illinois plans to purchase about 400,000 additional pounds of pork for fiscal year 2013. The pork will be purchased from local producers and processors. The jump in pork purchases is aimed at assisting the pork industry, which was hurt by drought and high input costs last year. The state, which feeds about 55,000 people (mostly inmates and senior veterans) each day, has a goal to purchase all of its food from Illinois farmers and processors by 2020. Central Management Services will put out bids for the pork in the next two months, according to a spokeswoman with the Illinois Department of Agriculture. For more information, visit the Illinois Procurement Bulletin website at {purchase.state.il.us}.

(ISSN0197-6680) Vol. 41 No. 5

February 4, 2013

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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. © 2013 Illinois Agricultural Association

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

Specialty cropS Feb. 26 event

Local growers sought-after commodity

BY KAY SHIPMAN FarmWeek

Consumers prefer locally grown fruits and vegetables, which makes the farmers who grow that produce in high demand. The opportunity to meet Illinois growers is drawing Mike O’Brien of Schnucks Markets Inc. and Mike Meyers of Walmart Stores Inc. to Normal on Feb. 26. Both buyers will join others attending a Meet the Buyers event at Heartland Community College, Normal. The registration deadline is Feb. 22. O’Brien, Schnucks’ vice president of produce and floral, told FarmWeek he is interested in meeting local growers who could supply nearby Schnucks stores. His company is struggling to locate Central Illinois growers, he noted. “We are looking for quality local produce,” O’Brien said. “We want the best quality for our customers.” Meyers, a Walmart local procurement manager based in Texas, said, “I’ll hopefully get some more resources in Illinois to provide more local items to be sold in state. “We like to have multiple sources in a state,” said Meyers, who buys salad vegetables for Walmart stores nationwide.

Both buyers said they are interested in talking with growers who have small or large operations. Currently, Schnucks is developing a local grower program. O’Brien said he will discuss the importance of food safety with the growers he meets. Information about Walmart’s grower criteria is available online at {walmartstores.com}. Click on the “supplier” link. Those requirements include third-party food safety audits and product liability insurance. On Feb. 26, growers will have an opportunity to meet not only with O’Brien and Meyers but buyers for a variety of businesses, such as Illinois State University, Edible Economy, Naturally Yours, and others. In addition, education sessions will be offered on commercial business practices and for recommended food safety practices. The event is open and free for farmers. It is being hosted by McLean County Farm Bureau and surrounding area Farm Bureaus, Illinois Farm Bureau, University of Illinois Extension, Illinois Department of Agriculture, and Illinois Specialty Growers Association. To register, call the McLean County Farm Bureau at 309-663-6497.

U of I Extension offering food safety workshops, webinar University of Illinois Extension is offering the Good Agricultural Practices (GAPs) workshop at four locations in February and March and a webinar series in April. The workshops and webinars are designed to teach fruit and vegetable growers about food safety practices that will help them be competitive in the marketplace, according to Ellen Phillips, Extension educator for local food systems and small farms. Recent produce-associated foodborne illness outbreaks have heightened public awareness of produce food safety and increased produce buyers’ demand for third-party audits to verify farm food safety practices. “More and more, the retail and food service industry are identifying growers who have implemented GAPs and have a verified farm food safety plan,” Phillips said. Workshop dates and locations are: Feb. 19, Oregon; Feb. 27, Joliet; March 4, Urbana; and March 12, Springfield. Each workshop will run from 8:30 a.m. to 4 p.m. Farmers who attend the workshops may become GAPs certified. A grant from the Illinois Department of Agriculture’s specialty crop grant program will provide cost-share assistance to farmers who would like to pursue GAPs certification. “For fresh fruit and vegetable producers, food safety is particularly important because

some of the fresh produce they grow is eaten raw,” said Phillips. “It’s critical to be aware of and implement food safety practices so that microbial risks can be minimized.” Workshop topics will include: developing a food safety plan, safety risk factors and impacts, and GAP and food safety farm audits, soil and manure management, and worker health and hygiene. The cost is $10 per person and includes lunch and a manual. Pre-registration is required one week in advance for each workshop. To register, go online to {http://web.extension.illinois.edu/state/calendar.cfm}. For more information on locations and any other questions, call 815-732-2191. A GAPs webinar series also will be offered for farmers unable to attend one of the four workshops. The webinars will take occur on Mondays, April 8 through April 29, from 6 to 8 p.m. The registration deadline is April 1. The fee is $10 per participant; pre-registration, along with pre-payment, is required by April 1. Call 815-933-8337 to register by credit card or register online at {http://web.extension.illinois.edu/gkw}. Recently, the U.S. Food and Drug Administration proposed two new food safety rules. The first would require

makers of food to be sold in the United States to develop a formal plan for preventing their food products from causing foodborne illness. The second eventually would affect small farmers and proposes enforceable, scienceand risk-based standards for the safe production and harvesting of fruits and vegetables. The proposed rules are online at {www.fda.gov/Food/FoodSafety/FSMA/}. Public comment is being accepted until May 16.

Tuesday: • Bryce Anderson, DTN chief ag meteorologist • Michelle Damico, Michelle Damico Communications • Steve Meyer, Paragon Economics Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Kevin Daugherty, education director, Ag in the Classroom, Illinois Farm Bureau • Rita Frazer, live from the Pork Expo • Liz Hobart, associate director of national legislation and policy development Thursday: • Representative from Illinois Corn Growers Association • Bonnie McDonald, president of Landmarks Illinois Friday: • Sara Wyant, Agri-Pulse publisher • Kevin Rund, IFB senior director of local government • Howard Buffett, The Howard Buffett Foundation To find a radio station near you that carries the RFD Radio Network, go to FarmWeeknow.com, click on “Radio,” then click on “Affiliates.”

Page 3 Monday, February 4, 2013 FarmWeek

government

Immigration debate rolling; ag groups hopeful BY MARTIN ROSS FarmWeek

A seemingly unlikely bipartisan Senate coalition set the stage early last week for renewed immigration debate. By Wednesday, the White House had rolled out its own blueprint. By Friday, a half-dozen Republican and Democrat House members were negotiating a potential “pathway” to legal status for an estimated 11 million undocumented immigrants currently in the U.S. Eight senators reached a deal on an immigration “framework” package prior to President Obama’s last Tuesday announcement of his own immigration reform proposals. The coalition included Chuck Schumer (D-N.Y.), former presidential candidate John McCain (R-Ariz.), Springfield Democrat Dick Durbin, and Marco Rubio (RFla.), a prominent Latino Republican popular with conservatives. Farm Bureau has joined a

number of other groups in an Agriculture Workforce Coalition (AWC) seeking a twotiered approach to ensuring

“We’ll be meeting soon with members of our (congressional) delegation to help them understand the issue

Illinois Farm Bureau is sending a letter to the state’s congressional delegation addressing the organization’s immigration/labor concerns.

that — as National Council of Agricultural Employers/AWC spokesman Frank Gasperini put it — “we’ll have willing workers when and where we need them.” While the “Gang of Eight” framework took a broad-brush approach to immigration reform, Gasperini said he was encouraged by a brief reference to “seasonal work and dairy” needs and the support of Rubio, who has met with AWC members. “We’re going to get to work trying to make sure agriculture is covered in any immigration reform,” Illinois Farm Bureau National Legislative Director Adam Nielsen said.

from agriculture’s perspective. Meanwhile, it’s nice to see we have senators representing all political stripes involved in this issue. Both parties appear motivated to work on it.” National Milk Producers Federation (NMPF) spokesman Chris Galen sees the Senate proposal as a “starting point” for the debate. Dairy “has some unique needs that need to be addressed,” Galen told FarmWeek. He cited a lack of nativeborn people “who want to do the work that needs to be done on dairy farms,” even at above-market pay. The federal H-2A visa program, which

LaHood credited with waterways awareness

Republican Ray LaHood’s 2009 appointment as the Democrat Obama administration’s transportation secretary was viewed as a key gesture toward political bridge-building. As head of the Department of Transportation (DOT), the former Peoria congressman played a key role in focusing federal stimulus funds on major infrastructure initiatives and addressing Illinois farmer concerns about evolving truck regulations. And as LaHood prepares to leave his Cabinet post, America’s Central Port Executive Director Dennis Wilmsmeyer recalls him as “a true gentleman” with a broad knowledge of road, rail, air, and water transportation. LaHood last week announced he would leave the administration as soon as a successor could be confirmed. He previously served in Congress from 1995 to 2009. While DOT has little jurisdiction over U.S. waterways per se, Wilmsmeyer credited LaHood with helping deliver roughly $14.5 million in federal TIGER (Transportation Investment Generating Economic Recovery) grant program funds for the Granite City port facility and promoting intermodal capabilities crucial to moving goods from farms to ports and markets. TIGER funding for the port district “probably wouldn’t have happened” under past trans-

In this February 2009 FarmWeek photo, U.S. Transportation Secretary Ray LaHood answers questions at the 46th annual Mid-West Truck Show in Peoria. LaHood then outlined efforts to put “ready-to-go” transportation-infrastructure projects on the ground as quickly as possible after Congress approved necessary funding. (File photo by Al Hasty)

portation secretaries, Wilmsmeyer maintained. “Ray has brought more focus to river transportation than any other secretary of transportation I can recall,” he told FarmWeek. “He’s been a true champion for us, focusing more projects on the river system, through the TIGER and other programs.” House Transportation and Infrastructure Committee member Rodney Davis, a Taylorville Republican who recently met with the transportation chief, noted “the way Secretary LaHood was able to work across the (political) aisle to get things done for this country.” Under LaHood, Illinois received more than $44 million in TIGER grants, including $13 million for a multimodal transportation center in conjunction with a new high-speed intercity

passenger rail station in Alton. LaHood is an avid proponent of high-speed rail. Further, Illinois Farm Bureau raised concerns with LaHood regarding interpretation of motor carrier safety rules. DOT’s Federal Motor Carrier Safety Administration subsequently announced it would not propose new safety requirements or changes to transportation rules for ag products or equipment or supplies moving to or from a farm. That decision relieved farmers under crop share leases who were concerned about being considered “for-hire carriers” subject to commercial driver’s license requirements. “Secretary LaHood was instrumental in getting it done,” IFB National Legislative Director Adam Nielsen maintained. — Martin Ross

enables crop producers to bring in seasonal workers, does not meet the needs of a sector where “cows have to be milked every day, two or three times a day, every day of the year,” Galen stressed. Galen said he is encouraged by support for immigration reform among senators from dairy states such as New York, Arizona, and Florida. Rubio and Gang of Eight member Jeff Flake (R-Ariz.) should help influence conservative congressional interests, while Durbin and Schumer may help bring more liberal Democrats to the table, he suggested. Rubio could help sway Republicans “who probably agree something needs to be done but have felt uncomfortable stepping out,” Gasperini said. “For this group to stand up together and say, ‘Here are the basic principles, here’s what we’re going to work for,’ well, that’s exciting,” he told FarmWeek.

1.5 million Hired workers employed in U.S. agriculture each year. Nearly 75 percent are foreignborn. (Source: United Fresh/University of California)

32,000 Until recently, the estimated number of farmworkers employed annually in Illinois fruit, vegetable, grain, dairy, sod, and nursery sectors. Seasonal workers plant, harvest, hoe, detassle, weed, cultivate, bunch, pick, prune, pack, and load. (Illinois Migrant Council)

40.3 million The estimated number of foreign-born immigrants in the U.S. Roughly 37 percent were naturalized citizens, 31 percent had legal permanent resident status, and 11.1 million were unauthorized. (Pew Hispanic Center)

Immigrant debate U.S. security issue? Roughly a month ago, lawmakers extended 2008 farm bill provisions reportedly amid public fears of possible $6-a-gallon milk under a reversion to 1940s-era ag policies should 2008 provisions expire. Consider this: A 2008 National Milk Producers Federation (NMPF) survey of 2,000 farms found U.S. dairies employed at least 138,000-plus full-time equivalent workers. About 57,000, or 41 percent of those workers, were foreign-born. A 2012 Texas A & M University study concluded farms using immigrant labor account for more than three-fifths of the milk produced in the U.S. Without those employees, economic output would decline by $22 billion and 133,000 workers would lose their jobs, according to the study. It thus may not be surprising that National Council of Agricultural Employers Executive Vice President Frank Gasperini sees immigration reform as “a national security issue” for the economy and especially for consumers. The type of labor-intensive farming that demands seasonalmigrant labor “actually produces the food we (directly) eat,” Gasperini noted. He warned in an interview with FarmWeek that continued labor shortages could result in “a patchwork of small bits and pockets of food production.” The 2012 drought underlined the shortcomings of current ag labor policies. Amid anticipation of reduced produce harvests due to drought — combined with “aggressive” immigration enforcement practices in pass-through states such as Alabama, Arizona, and Georgia — many perennial migrant workers simply “didn’t show up” this fall to pick Upper Midwest crops, Gasperini related. “We had less to harvest, but what was there was worth a lot more,” he noted. “If you lost something because it rotted because you didn’t have workers or your workers were late, you lost a lot more money.” In 2008, Texas A & M reported 77 percent of vegetable farmers reported scaling back operations. More than 80,000 acres of fresh produce once grown in California have been moved to other countries, researchers reported. According to a 2012 California Farm Bureau Federation (CFBF) survey, 71 percent of tree fruit growers statewide and nearly 80 percent of raisin and berry growers have been unable to find enough employees to prune trees or vines or pick crops. CFBF suggests thousands of West Coast farms could fail and farm income could drop by $5 billion to $9 billion as a result of heightened labor shortages. — Martin Ross

FarmWeek Page 4 Monday, February 4, 2013

ifb in action

Parrish: Water issues pose challenges BY KAY SHIPMAN FarmWeek

Illinois farmers and their U.S. counterparts face major challenges as the Environmental Protection Agency (EPA) seeks to implement water quality rules. Last week, members of Illinois Farm Bureau’s Strength With Advisory Teams (SWAT) received an overview of several issues and the possible impacts. There is a difference between agriculture’s and EPA’s perceptions of life and the environment, according to Don Parrish, senior director of regulatory relations with the American Farm Bureau Federation. Parrish addressed the SWAT members and later worked with the conservation and natural resources team. He challenged SWAT members to work so “people’s perception of agriculture is that agriculture is part of the solution.” The Farm Bureau leaders took a crash course on the implications of environmental

lawsuits, water quality permits, and numerical water quality standards for nutrients. “The (rule) process is exceedingly complicated,” Parrish warned. “It will impact your ability to operate and how you produce food and fiber.” He encouraged the farmers to become familiar with the program details and to apply that knowledge, such as locations of any ephemeral streams, to their own farmland. “You need to be able to identify (these points) on your farm and to help our membership understand these issues,” Parrish said. As EPA moves forward with various rules, the potential for conflict among different agricultural sectors exists, he noted. Parrish recommended the leaders seek common ground with other stakeholders and support targeting of conservation practices to achieve the most benefit. “We need people like you to focus on these things,” Parrish said.

Farm Bureau leaders receive charge as SWAT members Members of Illinois Farm Bureau’s newest team received a big assignment last week — become specialists capable of leading the debate on specific issues.

farmWeeknow.com Check out Kay Shipman’s video interviews with new SWAT members at FarmWeekNow.com.

The inaugural Strengthening With Advisory Teams (SWAT) met for the first time and learned they have a big job.

“We need people on the ground today who are up to speed on certain issues,” IFB President Philip Nelson told the group. “We have to have more voices on the ground trained to respond on issues.” Each of the three 14member teams is to identify short- and long-term issues in their field of expertise. The teams are: conservation and natural resources, farming production and marketing, and local and state government. In addition, other Farm Bureau members are serving on ad hoc advisory groups on

specific issues. The teams may seek additional input or expertise about specific issues from the ad hoc groups. As a group, team members received briefings on water quality issues, food production challenges, and the state’s political climate. SWAT members were encouraged to immerse themselves in the details and parameters of their team’s issues. They were asked to share information and seek input from other Farm Bureau members in their counties. — Kay Shipman

WoRKinG to REcRUit VEtERinaRianS

Leadership conference session

Fiscal decisions, politics to impact agriculture

The next few months will be key for a future farm bill, given pending deadlines and the political landscape, according to P. Scott Shearer, an ag policy expert with The Bockorny Group, based in Washington, D.C. Shearer’s deadline list includes a March 1 deadline for sequestration across-theboard budget cuts, the March 27 expiration of the fiscal year appropriation, and an April 15 budget deadline. “All of these items will have a great impact on the farm bill,” Shearer told FarmWeek. “The next few months will determine the likelihood of a (new) farm bill or not.” Shearer, an Illinois native, will share his political insights during Illinois Farm Bureau’s Governmental Affairs Leadership Conference Feb. 20-21 at the Crowne Plaza, Springfield. The conference pre-registration deadline is Feb. 11. Shearer, a University of Illinois graduate whose family farms in Douglas County, will participate on a political panel during the Feb. 20 general session. In addition to the looming deadlines, Shearer said he will discuss the implications of changes in Congress and the large turnover on the House Agriculture Committee (Illinois has three new members). Along with the conference’s general sessions, participants may select from two dozen workshop topics, including transportation, legislation,

local government, and natural resources. Farm Bureau leaders will have an opportunity to talk with lawmakers during a statewide legislative reception on Wednesday evening. A new activity this year will be a food drive for area food pantries. Conference participants are asked to bring nonperishable food items to “Stuff a Ford with food.” The goal will be to fill a Ford truck. All items will be donated to the Central Illinois Foodbank. The donated food and/or

‘The next few months will determ i n e t h e l i ke l i hood of a (new) farm bill or not.’ — P. Scott Shearer Ag policy expert The Bockorny Group

any money donations will count toward the IFB Young Leaders’ participation in the Harvest for All program. Registration is being offered for either or both days. The cost is $50 for Wednesday, Feb. 20, only, $30 for Thursday only, or $70 for both days. To register or receive more information, contact your county Farm Bureau office or go online to {ilfb.org}. — Kay Shipman

Day: KIC efforts important to state’s drainage districts

Troy Uphoff, left, an Illinois Farm Bureau director and chairman of IFB’s Illinois Veterinary Education and Training (IVET) program, chats with University of Illinois veterinary medicine students, left to right, Ben Blair of Sparta, Justin Fehr of Eureka, and Chelsea Ballinger of Stewardson last week. Uphoff and Jim Fraley, IFB’s livestock program director, met with about 15 first-year College of Veterinary Medicine students to discuss the IVET loan program. IFB will loan $20,000 to a vet med student. The money is to be repaid at a low interest rate after graduation. To be eligible, the student must be part of a food animal practice and serve Illinois livestock farmers. IVET also is available to students in other veterinary colleges who will come to Illinois to practice. (Photo by Jim Fraley)

The Keep it for the Crop (KIC) program will provide needed information that is important to members of the Illinois Association of Drainage Districts (IADD), according to Cheryl Day, IADD executive director. KIC was established by the Illinois Council on Best Management Practices (CBMP) to promote nutrient stewardship in six priority watersheds. A 75-cent-per-ton assessment on fertilizer recently was established to fund research and education on nutrient management. The assessment was the result of state legislation that created the Nutrient Research & Education Council (NREC). During the recent IADD annual meeting, none of the members expressed concerns about the new assessment to Day, she said. She said she encouraged her members to participate in NREC-funded research if they are asked to allow research on their farms. “We need the good data,” Day said. Last fall, a nitrogen monitoring project sponsored by the CBMP measured soil nitrogen levels in the top two feet of soil in fields around the state. — Kay Shipman

Page 5 Monday, February 4, 2013 FarmWeek

RISK MANAGEMENT

Insurance insights 2013: It’s about the options BY MARTIN ROSS FarmWeek

Last year’s roller coaster ride — from early spring planting to heavy late-season losses — has left farmers seeking options and federal risk management officials looking to minimize spring crop risks. In the latter category, USDA’s Risk Management Agency (RMA) has “tweaked” statewide initial spring plant dates for corn and soybeans (see accompanying map), Country Financial crop insurance coordinator Bob Dewey noted. The initial plant date is the earliest a policyholder may plant an insured commodity and qualify for a replanting payment under federal crop insurance. “If they plant before those initial plant dates, they’re on their own for replant costs,” Dewey told FarmWeek. Backing the “trend.” Dewey alerted growers to the Trend Adjustment-Actual Production History (TA-APH) Option, which allows producers to increase yields used in calculating crop insurance guarantees. That option benefited many Illinois growers hit by

drought last season, he noted. “If they didn’t take the trend adjustment for last year, they’ll want to take it this year,” Dewey maintained. Add-ons and expectations. A number of insurers offer their own coverage endorsements or other add-on “products” beyond basic federal crop policies. For example, Country sells a replant endorsement to supplement federal policies. RMA has ruled farmers may attach a private endorsement to supplement any federal crop policy. Individual companies cannot require a farmer to take out a federal policy with them in order to purchase one of their add-ons. “If someone’s happy with the company that’s writing their federal crop policy, they don’t have to switch to another company to take that private add-on,” Dewey stressed. Optimizing the options. Over the past few years, the enterprise coverage unit — all of an individual crop within a county — has been popular because of accompanying premium discounts. Dewey nonetheless anticipates some growers shifting to basic or optional units that allow them

to “split out” their acres and thus better control risk. In the event a producer opts “to stand more risk” under enterprise coverage, he recommends raising coverage levels by at least 5 percent, given reduced 2013 rates in

most counties. Dewey predicts growers will be drawn to the new High Risk-Alternative Coverage Endorsement (HR-ACE), which enables growers to divide coverage effectively into dual policies for high-risk

and non-high-risk ground. Under HR-ACE, high-risk acres can be segregated by crop and county under basic or optional units. Ground under the non-high-risk policy may be covered as basic, optional, or enterprise units.

New protection Coverage after cover: pilot covers blue Crop-specific rules apply corn growers USDA’s Risk Management Agency has approved a blue corn pilot insurance program for growers in 25 Illinois counties. Beginning this year, eligible farmers can cover the distinctively hued crop — which is raised under contract to produce tortilla chips and other snack foods — under a Yield Product policy. “The policy does not work like a traditional corn Revenue Product policy,” Country Financial crop insurance coordinator Bob Dewey stressed. To establish insurable yield, a producer must contract blue corn. The contract must specifically contain either a fixed price for contracted production or a premium amount over a price determined on the date chosen by the producer or on the date of delivery. The pilot is aimed in part at determining blue corn’s contract price differential and added value relative to commodity corn, to adjust projected price, harvest price, and price elections under future policies. Blue corn coverage is available this season in Bond, Boone, Brown, Cass, Champaign, Christian, DeWitt, Douglas, Fayette, Logan, Macoupin, Macon, Madison, Mason, McHenry, McLean, Menard, Montgomery, Morgan, Moultrie, Piatt, Sangamon, Shelby, Schuyler, and Winnebago counties. Blue corn is especially high in anthocyanin antioxidants associated with various health benefits and offers higher levels of the amino acid lysine than standard yellow or white chips. As a result, blue corn products are gaining increased consumer attention, market share, and processor contracts. — Martin Ross

Timing is crucial for Illinois growers who hope both to reap the benefits of cover crops and maximize commercial crop protection. USDA’s Risk Management Agency sets strict insurability requirements to reduce risks such as soil moisture depletion or a shortened growing season associated with growing a spring-planted crop following another crop or cover crop. “This is a biggie,” Country Financial crop insurance coordinator Bob Dewey emphasizes. Criteria for coverage of plantings following cover crops vary according to the crop: • Corn, sweet corn, popcorn, hybrid seed corn, and processing pumpkins are insurable if the cover crop is terminated at least seven days prior to the spring crop’s final planting date — June 5 in most of the state and May 31 in Alexander, Pope, Hardin, Johnson, Massac, Pulaski, and Union counties — and the cover crop is not hayed, grazed, or otherwise harvested after May 10. • Soybeans, processing beans, and grain sorghum. A cover crop can change how soybean farming practices are classified. To ensure the cover crop will not cause a change in practice especially with beans, the grower must not hay, graze, or harvest the cover crop after May 10 and must terminate the cover crop at least seven days before the

June 15 or 20 regional soybean final planting date. If those requirements aren’t met, soybeans following cover crops will be considered double-cropped. If the double cropping practice isn’t available in a county, soybeans may not be insurable. Consult a crop insurance agent for county double-crop status. Further, double-crop soybeans carry a higher premium. Separate criteria apply to crops planted following non-cover crops raised specifically for harvest. • Corn, sweet corn, popcorn, hybrid seed corn, and processing pumpkins are insurable if the other crop is terminated before it reaches the headed/budded stage and is not hayed, grazed, or harvested after May 10. “A lot of the time, this applies to a dairy or beef cow producer who makes a cut of alfalfa and plants corn afterward,” Dewey related. “Sometimes, a dairy guy may wait to make a cutting of hay possibly until late May. By then, it’s too late to harvest hay and insure their subsequent crop.” • Soybeans, processing beans, and grain sorghum are insurable if the other crop is terminated before it reaches the headed/budded stage and is not hayed, grazed or harvested after May 10. — Martin Ross

FarmWeek Page 6 Monday, February 4, 2013

Young Leaders

Lehr: ‘Golden age’ presents opportunities for young farmers the history of agriculture,” Lehr said. “This is a golden Farmers who long for the age for agriculture.” “good ole days” likely aren’t Strong demand for ag prodreferring to $2 corn and those ucts and corresponding high 12-plus-hour days of hard commodity prices are being labor. driven by a growing population Those days are in the past, with a more diverse appetite. and it is unlikeThe average ly corn prices meat intake will return to around the $2 per bushel has ‘ I ’ m c o n f i d e n t world any time in the increased by grain prices will about 50 pernear future, according to Jay stay up.’ cent since Lehr, econo1990, accordmist and sciing to Lehr. ence director of “While (the — Jay Lehr Science director, The Heartland U.S.) has been The Heartland Institute Institute in in a recession Chicago. the last few Lehr, during years, the world his keynote is becoming address at the Illinois Farm more affluent,” he said. “The Bureau Young Leader State demand for better and more Conference, told young farmfood has been huge.” ers agriculture is in a “golden The middle class in China age” that is attracting talent and India will add about 230 back to the industry. million people and 60 million “You (young farmers) are people, respectively, this starting out in the best time in decade. Demand and prices for food, therefore, are expected to remain strong for years to come.

“I’m confident grain prices will stay up,” Lehr said. “They will not go where they were a decade ago.” The crop markets, though, likely will be more volatile than in the past.

Farmers in the future also will have to adjust to legislative and regulatory changes, he said. “We will not need price supports. We will not have direct payments in the next farm

bill,” Lehr told the young leaders. “What you will have (for a safety net) is crop insurance.” Farmers increasingly will rely on technology and machinery improvements, which will reduce the amount of physical labor and man-hours it takes to produce food. Farmers, particularly those just starting out, likely will need to incorporate more physical exercise into their lifestyles to stay healthy and productive over their lifetimes, said Lehr, 76, who is an avid runner and outdoorsman. “Farming is a much less rigorous profession than it was for your granddad, who wore himself out,” he told the young leaders. “That’s a double-edged sword. “You need to recognize that, for most of you, work (on a modern farm) is not enough to stay healthy,” he added. “You need to watch your diet and exercise.”

Usually it is considered rude to use a cell phone during a meeting or conference. But Brent Pollard, chairman of the Illinois Farm

Bureau Young Leader State Committee, used his phone recently to make a point during his address to more than 400 attendees at the Young Leader Conference in Normal. Pollard, a dairy farmer from Rockford, demonstrated to fellow young farmers how simple it is to place a call to a legislator as part of the FB Act Program. “When an issue is really important to us, IFB moves forward with an action request,” Pollard said. “We need to (act on the request and) reach Brent Pollard out to legislators.” Pollard urged Young Leaders and others at the conference to sign up and participate in the FB Act Program. He also urged Young Leaders to proactively engage consumers about issues affecting food and agriculture. “Have a 20-second pitch ready for when you run into a consumer,” Pollard said. “That’s about the time you have to make an impression on them. “Let them know that a seed corn sign doesn’t mean Monsanto owns your field,” he continued. “Or, let them know you take good care of you animals.” Philip Nelson, IFB president and a farmer from Seneca, who 36 years ago attended his first Young Leader/Young Farmer confer-

ence, said Young Leaders are critical to the future of the ag industry and IFB. “You will play an active role (shaping the future of the organization),” said Nelson, who won the national Young Leader/Farmer Achievement Award and was the runner-up in the national Discussion Meet when he was a Young Farmer (the name of the Philip Nelson organization before it became Young Leaders). “We’re depending on you.” He also urged Young Leaders to proactively engage consumers. “We’ve got to get more people engaged and tell (consumers) what we do and how we do it,” Nelson noted. Jay Lehr, economist and science director of The Heartland Institute in Chicago, told Young Leaders various activist groups have painted a target on the backs of farmers. “You have to undo that,” Lehr told the gathering. “I challenge you to commit two hours per month to promote agriculture to people who are not in ag.” Lehr’s key messages to consumers include the fact that plants can’t live without nutrients, which are included in fertilizer, farmers conserve land and are environmental stewards, and farmers must continue to grow yields through conventional ag to feed a growing world population. — Daniel Grant

BY DANIEL GRANT FarmWeek

Jay Lehr, left, economist and science director for The Heartland Institute in Chicago, discusses the future of farming with Landon Frye, an Illinois Farm Bureau Young Leader from Edgar County, during the recent State Young Leader Conference in Normal. (Photo by Daniel Grant)

Pollard, Nelson urge Young Leaders to be proactive

CHALLENGE THE STATUS QUO

New FS InVISION™ seed corn is a game changer, changer, engineered with genetic muscle to outperform expectations. Make no mistake: We’re We’re here to un-cede the top seed. See your local FS member company when you’re ready to get serious. www.fsinvision.com

Page 7 Monday, February 4, 2013 FarmWeek

young leaders

Illinois Farm Bureau Young Leaders plan, invest for future BY DANIEL GRANT FarmWeek

The recent economics of production agriculture have been a blessing and a curse for some young farmers and others interested in the profession. High commodity prices are encouraging more young people to stay on the farm and pursue careers in agriculture. But high land prices and cash rents and limited availability of farmland have hindered some from starting or expanding operations. Young Leaders discussed the situation recently at the Illinois Farm Bureau Young

Leader State Conference in Normal. â&#x20AC;&#x153;There are a lot of opportunities in agriculture and a lot of risk,â&#x20AC;? said Matthew Starr, a crop and hog farmer from Nauvoo (Hancock County) who is serving on the Young Leader State Committee. Matthew Starr â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d like to expand, particularly on the crop side.â&#x20AC;? However, Starr is cautious about expanding his operation due to record-high land prices

in his area. He recently chose instead to invest in improvements on some of his current farmland. â&#x20AC;&#x153;Land is Teresa Buchheit worth so much, weâ&#x20AC;&#x2122;re trying to improve what we have (through tiling and fertility improvements),â&#x20AC;? he said. â&#x20AC;&#x153;That dollar may be better spent than it would on new land (at current prices).â&#x20AC;? Teresa Buchheit, a Young Leader from Ellis Grove in Randolph County, who has

worked as a crop consultant the past eight years, said she has seen an influx of young farmers as her customers. And more seem to be investing in their farms with an eye on long-term profitability, she said. â&#x20AC;&#x153;The younger generation is starting to show back up on the farm,â&#x20AC;? Buchheit said. â&#x20AC;&#x153;A lot of farmers in my age group (30 to 40 years of age) are purchasing more specialty services (such as crop scouting and soil testing).â&#x20AC;? Farmers also are using more technology, such as field guidance systems, to improve their output and overall prof-

The unique program unites different generations of farmers through the exchange of personal ideas,

friendly. The younger women could ask the experienced women about their role on the farm.â&#x20AC;? The program also offers good opportunities for networking. â&#x20AC;&#x153;We made some good friends,â&#x20AC;? Carrie said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d recommend (the CMF program) to Young Leaders.â&#x20AC;? Registration currently is open for farmers interested in the CMF program. Applications are available online at {1stfarmcredit.com} and at the IFB Young Leaders website {youngleaders.yolasite.com}.

Questions about the program may be directed to Karen Blatter at 309-2680254 or by emailing her at kblatte@1stfarmcredit.com. To be eligible for the program farmers must be between the ages of 21 and 35 years, be actively engaged in production ag, and be willing to commit to a two-year program. Couples are encouraged to apply. The program is sponsored by 1st Farm Credit Services, Farm Credit Services of Illinois, GROWMARK, Illinois Farm Bureau, Monsanto, and Prairie Farmer. â&#x20AC;&#x201D; Daniel Grant

Young couple finds great value in CMF program Brad and Carrie Gates of Carmi (White County), like many farm families, donâ&#x20AC;&#x2122;t have a lot of free time. The Gateses have two children, Joseph, 7, and Alexus, 4, and they farm in a partnership with Bradâ&#x20AC;&#x2122;s parents, Richard and Janice, and grow corn, soybeans, and wheat on about 2,000 acres. So when Richard encouraged the young couple to signup for the Cultivating Master Farmers (CMF) program two years ago, Brad and Carrie admitted they were hesitant at first to commit the time. â&#x20AC;&#x153;We were reluctant at first but excited once we got in,â&#x20AC;? Brad told FarmWeek at the recent Illinois Farm Bureau Young Leader State Conference in Normal. The two-year CMF program joins a class of young farmers with Prairie Farmer Master Farmers for an exchange of knowledge and ideas.

â&#x20AC;&#x2DC;We made some good friends. Iâ&#x20AC;&#x2122;d recommend (the CMF program) to Young Leaders.â&#x20AC;&#x2122; â&#x20AC;&#x201D; Carrie Gates Carmi

knowledge, and production experience. â&#x20AC;&#x153;What we probably enjoyed most about it is you can ask (the Master Farmers) questions you probably wouldnâ&#x20AC;&#x2122;t ask someone in your own area (due to privacy or competitive issues),â&#x20AC;? Carrie said. â&#x20AC;&#x153;And itâ&#x20AC;&#x2122;s couple-

itability, according to Greg Chandler, a farmer and Young Leader from Onarga in Iroquois county. â&#x20AC;&#x153;I think the future for young farmers is real bright,â&#x20AC;? he said. â&#x20AC;&#x153;With all the resources and technology, Greg Chandler we have a better chance to survive.â&#x20AC;? The increasing value of far ms and far m products make it even more important for young far mers to establish estate plans, Jim Hughes, financial security consultant with Country Financial, told the Young Leaders. â&#x20AC;&#x153;Have a plan in place to allow for the efficient transition of the estate to help achieve financial security and to protect what you have with a desire to build in the future,â&#x20AC;? Hughes said. Farm families who do not establish proper estate plans often are forced to sell assets during transitional times because the estate needs liquidity, he noted. Hughes encouraged the young farmers to contact a Country agent to set up a meeting with a financial security consultant.

We ar are are

Your FIR Your RST ST Ch Choic ce for Stora rag ag ge Loa oan an ns.

ÂŽ

"HSJDVMUVSBM 'JOBODJOH t 3VSBM )PNF -PBOT t "QQSBJTBMT -FBTJOH t "HSJCVTJOFTT BOE NPSF

t XXX TUGBSNDSFEJU DPN t XXX TUGBSNDSFEJU DPN 1st FFarm arm C Credit redit SServices ervices is an equal oppor opportunity tunity pr provider. ovider. Brad and Carrie Gates

FarmWeek Page 8 Monday, February 4, 2013

CONGRATULATIONS CONGRA NGRAATULA T ATIONS TI TO

THE WINNERS GRAND PRIZE AAWARD WARD /

Illinois FFarm arm Bureau Photo Contest for Members

Rachhel Green / Cumberland COunty Rachel If Barns could ou talk

Brenda Brenda Fesser / Montgomery Montgomery County

MEMBERS CHOICE aaward ward / Connie Hieronymus / De Witt County

Page 9 Monday, February 4, 2013 FarmWeek

2ND PLA PLACE CE WINNERS

Christine Blair / Jo DDaviess aviess COunty Countryy Ro Countr Roads ads

1ST PLA PLACE CE WINNERS

Jessica Doub / Ma Macon con COunty Farm Farm Friends

Diane Singler/ Montgomer Montgomeryy County Growing Pla Places ces

PPaul aul Riewerts / Rock Island COunty Growing Pla Places ces

Sher Sheryl yl Slightom / Ma Macoupin coupin County Countr Countryy Roads Roads

Joshua Feldhaus / OGLE County FFarm arm Friends Q829D2

To view all entries from om this year’’ss contest, cont visit Ken Kashian’ hian’’ss Photo Gallerryy at www w.ilfbphotos.org .ilfbphoto .ilfbphotos.org

FarmWeek Page 10 Monday, February 4, 2013

production

Farmers, don’t spread the flu to your hogs BY KAY SHIPMAN FarmWeek

Farmers and their employees who have the flu should let someone healthy feed and care for their hogs. With a widespread flu outbreak continuing in Illinois and 46 other states, Dr. Gail Scherba, professor of veterinary virology at the University of Illinois College of Veterinary Medicine, answered FarmWeek questions related to flu. FarmWeek: Is the flu virus currently infecting humans transmissible to swine?

Scherba: Yes, we can give our influenza virus to pigs. You may remember that in 2009 that we were giving that virus (H1N1v) to the pigs; they weren’t giving it to us. Pigs are unique in that they can be infected with human and avian influenza viruses. Because of this, pigs are considered a “mixing vessel” — if infected at the same time with human, avian, and swine influenza viruses, the three viruses can mix their genetic information and result in different influenza viruses (called reassortants).

This is how several pandemics (global influenza outbreaks) have occurred, such as Asian flu (1957), Hong Kong flu (1968), Russian flu (1977) and a more recent strain (in 2007). FarmWeek: If someone who cares for swine thinks he or she has the flu, should he or she stay home? Wear masks and gloves? Scherba: People with flu should stay home — they are shedding virus to those around them and their pigs by their coughs, sneezing, and virus-contaminated hands.

But if there is no one else to care for the animals, definitely wear a mask and gloves. They should wash their hands with soap and water before entering the animal rooms, and if they have to blow their nose. Think high levels of personal hygiene. FarmWeek: What kinds of precautions should hog farmers and their employees take? Should they get flu shots? Scherba: Definitely get a flu vaccination. However, getting a flu vaccine will not 100 percent protect someone from getting infected with influenza

virus, which is true for just about all virus vaccines. Then why get vaccinated? It minimizes the amount of virus that can infect the vaccinated person to hopefully keep the infection subclinical (without signs of disease, such as fever) and will reduce the amount of virus that vaccinated persons will shed as well as the length of time that they are shedding. Additional information for swine producers is available online at {aphis.usda.gov/animal_health/animal_dis_spec/ swine}.

Tri-state forest stewardship conference planned for March 9 University of Illinois and Iowa State University will host the Tri-State Forest Stewardship Conference March 9 at Sinsinawa Mound Center in Sinsinawa, Wis. The early registration deadline is Friday. The conference draws more than 500 woodland landowners, forest and tree enthusiasts, and natural

resource specialists from Illinois, Iowa, and Wisconsin. Registration regularly fills to capacity, so interested individuals are encouraged to register early. “We have a great lineup of expert speakers covering a wide variety of topics on woodland management, wildlife, conservation, and outdoor recreation,” said Jay

Hayek, U of I Extension forestry specialist. Seminar topics include timber sale contracts and marketing, woodland erosion, forest vegetation management, timber harvesting techniques, crop-tree management, tree planting tips, invasive species, chainsaw sharpening, and farm ponds. Two special two-hour

workshops on fly tying and fruit tree grafting each will be limited to the first 25 registrants and require an additional fee. Registered participants will receive an introductory fly-tying kit and five grafted apple trees on certified rootstock. Participants also may talk with state agency, federal, and university forestry and natural resource specialists. Exhibitors will offer a variety of products and services. To register online, go to {http://extension.illinois.edu/

go/tristateforest} for a downloadable agenda, conference location details, and mail-in registration form. The registration fee is $40 per person by Feb. 8 and $50 after that deadline. Registration ends Feb. 22, and no walk-in registration will be allowed. The fee includes a breakfast, lunch, refreshments, resource packet, handouts, and a coffee mug. For more information, contact Hayek at 217-244-0534 or jhayek@illinois.edu.

Milk prices slip again

The Class III price for milk adjusted to 3.5 percent butterfat for the month of January was $18.14 per hundredweight, 52 cents lower than the previous month. This marks two straight months of lower prices. Yesterday’s “Big Game” is the single largest consumption day for cheese of the year. Now that this high-demand day is behind us, cheese prices are expected to remain soft. Milk production has been edging higher each month, and that has led to some lower prices the past couple of months.

Page 11 Monday, February 4, 2013 FarmWeek

energy

Pollution dilution biofuels solution? BY MARTIN ROSS FarmWeek

The petroleum industry’s latest attack on E15 reportedly relies on data based on use of higher-polluting gasolines likely to be targeted by the U.S. Environmental Protection Agency (EPA). Last week, the American Petroleum Institute (API) touted a “new” report challenging use of the mid-level 15 percent ethanol gasoline blend in conventional vehicles. According to Illinois Corn Growers Association Technology and Business Development Director Dave Loos, the study is a rehash of a report

released last year and rejected by the U.S. Energy Department. The biofuels group Growth Energy charged API with using “cherry-picked” data in an effort to block use of higher renewable fuel blends. Loos noted the narrow sampling of vehicles used in study testing and argued the specific blends used in tests were “not the fuels that would normally be seen in conventional E15 that consumers would be purchasing.”

The gasoline used for the study was far higher in sulfur content than standard commercial fuel, said Loos, who added that sulfur can impact both engine corrosion and air emissions. In the wake of API’s latest volley, the American Lung Association (ALA) hailed anticipated EPA proposals for reducing vehicle tailpipe emissions linked to public respiratory problems. ALA spotlighted the health impact of sulfur emissions in particular, and Loos maintained “dilution’s the solution to the pollution.” “Biofuels can be zero-sulfur

fuels,” ALA Senior Vice President Paul Billings told FarmWeek. “If you blend a zero-sulfur fuel with a base fuel, that would dilute and reduce the percentage of sulfur in the fuel. “We have some concerns about mid-level blends in older vehicles, but EPA has moved forward with allowing E15 for newer (2001 and later) vehicles. I’d expect the proposal EPA puts forward will have more detail with respect to how E15 and other midlevel ethanol blends may be addressed.” EPA’s “Tier 3” pollution proposal, which covers sulfur levels and tailpipe standards

for smog-forming pollutants such as nitrogen oxide, is being reviewed by the White House Office of Management and Budget (OMB). Once the rule clears OMB, possibly in March, it will be open to public comment. Billings reported ALA ideally would prefer to see “zero sulfur at the refinery gate” but applauded proposals to reduce the average gasoline sulfur concentration from 30 parts per million (ppm) to 10 ppm. ALA links vehicle pollution to asthma, chronic obstructive pulmonary disease, heart attacks, strokes, and possibly cancer.

Will court RFS ruling limit cellulosic growth? A January federal court ruling upheld federal “advanced biofuel” requirements but raised questions about future demand for and investment in biomass-based ethanol. A Washington, D.C., circuit court vacated U.S. Environmental Protection Agency (EPA) 2012 cellulosic biofuel requirements under the federal Renewable Fuel Standard (RFS2) but affirmed last year’s RFS2 advanced biofuel standard. RFS2 sets annual biofuels requirements for fuel blenders and suppliers. The court ruled EPA set a cellulosic target with the goal of promoting growth in the industry rather than projecting likely production capacity. The ruling sparked concerns about future demand for fuels produced from crop residues or energy crops. Biodiesel interests, whose product is the only major federally defined advanced biofuel on the market, hailed the decision. EPA subsequently released a long-awaited proposed rule for 2013 RFS2 requirements, reducing its cellulosic biofuel requirement from 1 billion gal-

lons to 14 million gallons in 2013 but retaining overall advanced biofuel/renewable fuel requirements. American Farm Bureau Federation economist Matthew Erickson argues cellulosic ethanol is an important next step in moving beyond corn ethanol to advanced biofuels and a “pathway to the overarching (RFS2) goal” of building to 21 billion gallons of nextgeneration biofuels by 2022. Cellulosic ethanol is “becoming more mainstream because it has to” under federal mandates, he maintained. Major companies including Poet, Abengoa Bioenergy, and DuPont are involved in cellulosic-based production, and several startups are expected by 2014. However, Erickson noted a number of existing challenges to widespread biomass ethanol production, including logistics of cellulosic materials harvest, transportation, and pricing and startup capitalization. For farmers to generate energy biomass, “there has to be a market,” he said, concerned by the court’s position regarding

Auction Calendar

Union Co.’s Land Auc. JACOB, IL. www.buyafarm.com Tues., Feb. 19. 11 a.m. Farm Eq. Closing Out Auc. Donnie and Linda Hoeft, DELAVAN, IL. Nehmelman Auction Co. and Ron Sanert, Auctioneers. topauctions247.com/nehmelman or auctionzip.com Thurs., Feb. 21. 10 a.m. Farm machinery. Mike and Susan Seitzinger, LAWRENCEVILLE, IL. Parrott Auctions. www.parrottauctions.com or www.auctionzip.com id 4851 Fri., Feb. 22. 7 p.m. Farmland Auc. Benjamin Howard Tull Est., SHELBYVILE, IL. Gordon Price Auction Service. www.priceauction.com Fri., Feb. 22. 9 a.m. Consignment Auction. MORRIS, IL. Richard A. Olson and Assoc. www.richardaolson.com Fri., Feb. 22. 6 p.m. Edwards Co. Farmland Auction. The Melvin W. Crackel Trust and Nadine M. Crackel Trust, ALBION, IL. Barnard Auctions. www.auctionzip.com id 2008

Wed., Feb. 6. 7 p.m. Northern IL Online Only Ag Auction. espeauctions.com Thurs., Feb. 7. 10 a.m. Farm machinery and misc. Ronald Janke Estate, STREATOR, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc.com Sat., Feb. 9. 9:30 a.m. Consignment Auc. GREENFIELD, IL. Jerry Joyce, Mark Pennell and Larry Derricks, Auctioneers. www.joyceauctions.com Sat., Feb. 9. 9:30 a.m. Retirement Auction. John R. and Shelia Hathaway, HARRISBURG, I L. Jamie Scherrer Auction. www.jamiescherrerauction.com Tues., Feb. 12. 8:30 a.m. Machinery Consignment Auc. HAMILTON, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Wed., Feb. 13. 10 a.m. Online Only. www.bigiron.com Sat., Feb. 16. 10 a.m. Jackson and

RFS2 objectives. “The biggest concern with cellulosic ethanol, most definitely, is getting the investments in place for plants to actually take cellulosic materials,” Erickson told FarmWeek. “To me, the Renewable Fuel Standard is a policy that has to

create development for investment. If we look back to corn ethanol investment in 20072008, that was the boom, because we had to meet requirements under RFS2. If we have to get 21 billion gallons by 2022, we have to promote the investment.”

DuPont is building a 30-million-gallon-per-year plant at Nevada, Iowa, that reportedly will collect more than 375,000 tons of corn stover annually. South Dakota ethanol producer Poet is building a corn cobbased plant in Emmetsburg, Iowa. — Martin Ross

FarmWeek Page 12 Monday, February 4, 2013

FB AT WORK

Illinois Horse Fair to offer expanded hours Top national instructors and equine educators will join vendors offering everything equestrian March 1-3 at the 24th annual Illinois Horse

Fair at the Illinois State Fairgrounds in Springfield. The fair hours will be 9 a.m. to 7 p.m. Friday and Saturday and 9 a.m. to 5 p.m.

Sunday. Fair hours have been expanded this year, with the fair starting at 9 a.m. Friday instead of 1 p.m. More than 140 commercial

LEADERSHIP STYLES

exhibitors will be housed in the Exposition Hall, a new location this year. Sponsored by Illinois Farm Bureau and Purina Mills, the event will feature award-winning instructor and Australian stockman Guy McLean along with Jason and Rose Goodman and their Percheron Thunder six-horse team. Friday and Saturday will feature a ranch rodeo at 7:30 p.m. in the Coliseum. Training demonstrations along with clinics and demonstration sessions will be offered in the Coliseum and the Livestock Center. Popular features will include the Horses-for-Sale aisles, breed and sport demonstrations, stallion row and parade,

the all-youth horse judging trials, future riders activity area, and a queen contest. Daily admission tickets cost $10 each; weekend passes cost $25. Children younger than 8 enter free with an adult with paid admission. General admission tickets provide access to all exhibits, clinics, and educational presentations. Separate tickets are required for the ranch rodeo and Guy McLean evening performances. General admission evening tickets to those events cost $10 each, and reserved seating evening tickets cost $15. Tickets for the events may be purchased online at {horsemenscouncil.org/HorseFair} or by calling 217-5296503.

SEEKING DONATIONS

Agricultural Leaders of Tomorrow (ALOT), left to right, Janet McCabe, Orland Park, Cook County; Wendy Erbsen, Lanark, Carroll County; Dennis Groezinger, Lena, Stephenson County; and Cheryl Walsh, Dunlap, Peoria County, work on a group project during last week’s ALOT session in Rockford. The teams depicted human behavior and communication styles. Over the nine weeks of classes, 29 leaders from 13 counties will participate in 80 hours of class instruction. (Photo by Ken Kashian)

Diane Murray, Miss Jersey County Fair queen, passed out snacks and Combine for a Cause fliers at an elevator to promote the Jersey County Farm Bureau’s charitable program. Diane’s mother, Kim, is chair of the Combine for a Cause Committee. The program provided an opportunity for farmers in the county to help those in need by pledging bushels of grain during harvest. The monetary value of the bushels — $2,679.37 — was donated to the Salvation Army Food Pantry in Jersey County in December. The program was a collaborative effort of the Farm Bureau, Jersey County Grain, and Jersey Farmers Elevator. (Photo courtesy of Jersey County Farm Bureau)

Travel with other Farmers!

Best of Ireland Tour 12 Days

from

$1598*

Depart June 13, July 25 & August 22, 2013 Start in Dublin with a city tour including St. Patrick’s Cathedral (the largest church in Ireland). Travel to Cork, stopping at the Rock of Cashel and Cobh along the way. Then visit Blarney Castle, Woollen Mill and Muckross House & Gardens en route to Killarney. Drive the “Ring of Kerry” offering spectacular scenery, tour Bunratty Castle & Folk Park, built in 1425. Visit the Cliffs of Moher, Galway, the Connemara region, Kylemore Abbey and the Bundoran area. Enjoy a guided tour of Belleek Pottery, visit Ulster American Folk Park, & explore “The Giant’s Causeway.” Finally take a sightseeing tour of Belfast that includes the impressive Parliament buildings plus you will visit the newly opened “Titanic Belfast.” Tour includes 16 meals. *Add $50 for July 25 & August 22 departures. *Price per person, based on double occupancy. Airfare is extra.

For reservations & details call 7 days a week:

1-800-736-7300

Page 13 Monday, February 4, 2013 FarmWeek

from the counties

HAMPAIGN — The Farm Bureau Equine Committee will host a Champaign equine adventure from 8 a.m. to 12:30 p.m. Saturday, Feb. 23, at the Tony Noel Building at Parkland College. Cost is $5. The event will include speakers, a vendor area, and information from riding clubs and animal rescue agencies. LAY — Farm Bureau will sponsor a bus trip from 5:30 a.m. to 8:30 p.m. Thursday, Feb. 14, to the National Farm Machinery Show in Louisville, Ky. Cost is free for Farm Bureau members and $25 for non-members or the purchase of a Farm Bureau membership. The trip will include dinner at the Logg Inn in Haubstadt, Ind. Call the Farm Bureau office at 665-3300 or email claycofb@bspeedy.com for reservations or more information. • Farm Bureau will host a market outlook meeting at 6:30 p.m. Tuesday, Feb. 12, at the Farm Bureau office. Dale Durchholz, AgriVisor market analyst, will be the speaker. Call the Farm Bureau office at 665-3300 or email claycofb@bspeedy.com for reservations or more information. • Farm Bureau and Country Financial will sponsor an estate planning seminar at noon Friday, Feb. 22, at the Farm Bureau office. Jim Hughes, financial security consultant for Country Financial, and a local attorney who specializes in estate planning will be the speakers. Call the Farm Bureau office at 665-3300 or email claycofb@bspeedy.com for reservations or more information. OOK — The Farm Bureau Commodities/Marketing Team will sponsor up to five $300 Cookfresh grants for garden supplies. Contact the Farm Bureau office at 354-3276 for applications or more information. Application deadline is Feb. 28. • Farm Bureau scholarships are available. Contact the Farm Bureau office at 3543276 or at {cookcfb.org/cook-cfb-foundation/scholarships} for an application or more information. Application deadline is Feb. 20. • Farm Bureau and the Ronald McDonald House Charities of Chicagoland and northwest Indiana will celebrate Food Check-Out Day Feb. 21. Non-perishable food items may be dropped off at the Farm Bureau office. Call the Farm Bureau office at 3543276 for more information.

ACKSON — A truck regulation and crop insurance seminar will be from 8 to 10 a.m. and 10:30 a.m. to noon Tuesday, Feb. 26, at John A. Logan College. Kevin Rund, Illinois Farm Bureau transportation expert, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Call the Farm Bureau office at 684-3129 for more information or to register. • Stroke Detection Plus will offer ultrasound screenings for detection of stroke, abdominal aortic aneurysm, peripheral arterial disease, and osteoporosis from 9 a.m. to 4:30 p.m. Tuesday, Feb. 26, at the University of Illinois Extension office in Murphysboro. Cost is discounted to $100 for Farm Bureau members. Call 1-877-732-8258 to schedule an appointment. ANKAKEE — Farm Bureau will cosponsor a congressional candidates forum for the 2nd Congressional District at 6 p.m. Tuesday, Feb. 12, at the Kankakee Public Library. This forum was originally scheduled for Feb. 7. Call the Farm Bureau office at 932-7471 for more information. ENDALL — Young Leaders will sponsor an estate/succession planning meeting at 10 a.m. Thursday, Feb. 28 at the Kendall County Extension office, Yorkville. Denny Prentice and Dan Howes, Country agents with the DeKalb/Kendall agency, will be the speakers. Call the Farm Bureau office at 5537403 for reservations or more information. Reservation deadline is Feb. 25. • Farm Bureau will sponsor a Future Farmers of America acquaintance program for Newark High School members at 6 p.m. Tuesday at Newark High School. • The Farm Bureau Foundation annual meeting will be held at 7 p.m. Monday, March 11. A regular foundation board meeting will follow the annual meeting. • Farm Bureau Foundation scholarship applications are available. This includes the Dobbins Family scholarships which are available to LaSalle County High School seniors or college students majoring in an ag-related field of study. Call the Farm Bureau office at 553-7403 for applications or more information. Application deadline is July 1. • The Farm Bureau, Will and Grundy County Farm Bureaus and Joliet Junior College are sponsoring the TriCounty Summer Ag Institute July 17 to 19 and 22 to 23. Registration is through the

Professional Development Alliance office in Joliet. Graduate credit from Aurora University will be available. Call the Farm Bureau office at 553-7403 for more information. • Prime Timers will sponsor a bus trip to the Chicago Flower Show at 8:45 a.m. Tuesday, March 12. Cost is $38 for members. Call the Farm Bureau office for reservations or more information. ERCER — A truck regulation and crop insurance seminar will be from 8 a.m. to 12:30 p.m. Wednesday at the Carl Sandburg College gymnasium in Galesburg. Kevin Rund, Illinois Farm Bureau transportation expert, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Call the Farm Bureau office at 582-5116 for more information. • Farm Bureau will form a public relations team that will sponsor events in the community to educate friends and neighbors on the origin of their food, fiber, and fuel. Call the Farm Bureau office at 582-5116 or email mcfbmanager@gmail.com to join the team or for more information. ONROE — Farm Bureau Foundation scholarships are available to Monroe County High School seniors who will further their education in an agriculturerelated field of study. Contact the Farm Bureau office at 939-6197 or email mcfarm@htc.net to request an application. Application deadline is Feb. 15. • Farm Bureau’s annual meeting will be at 6:30 Saturday, Feb. 23, at St. Mary’s Parish Center, Valmeyer. The Brass Ensemble will perform. Contact the Farm Bureau office to purchase tickets by Feb. 15. ONTGOMERY — Farm Bureau Foundation scholarships are available to students entering college during the 2013-2014 school year who are Farm Bureau members or children of a Farm Bureau member and pursuing an agriculturalrelated field of study. Six $1,500 scholarships will be awarded. Applications are available at {montgomerycountyfb.com}. Application deadline is noon Monday, March 11. • Farm Bureau Prime Timers will sponsor a luncheon and meeting at noon Wednesday, Feb. 20, at the Farm Bureau office. Cost is $8. David Strowmatt from the office of Veterans Assistance Commission will be the speaker. Call the Farm Bureau

office at 532-6171 for more information or to register. Registration deadline is Friday. • Farm Bureau will sponsor a Saturday, April 16 trip to see the Passion Play at the Bloomington Center for Performing Arts. Call the Farm Bureau office at 532-6171 for more information or if you are interested in attending. EORIA — Prime Timers will meet at 10 a.m. Wednesday at the new Caterpillar Museum in Peoria. Call the Farm Bureau office at 686-7070 for reservations. • Farm Bureau will sponsor a family fun day at 11:15 a.m. Saturday, Feb. 9, at the Mt. Hawley Bowl. Cost for three games will be $5 for adults and free for children 6 to 12 years. Reservations are not required. • Young Leaders will tour the Sauder Dairy Farm in rural Tremont on Monday, Feb. 11. The tour is available to members 18 to 35 years old. There is no cost. Call the Farm Bureau office at 6867070 for reservations. • The annual meeting of the Peoria Soil and Water District will be at 8 a.m. Saturday, Feb. 16, at the Brimfield High School. Call 671-7040 for tickets. ERRY — Farm Bureau will sponsor a bus trip leaving at 5:30 a.m. Wednesday, Feb. 13, to the Louisville Farm Show. Cost is $55. Reservation deadline is Wednesday. IKE — Farm Bureau’s annual meeting will be at 7 p.m. Wednesday, Feb. 13, in the Farm Bureau auditorium. ANGAMON — Farm Bureau will host a market and weather outlook meeting at 2 p.m. Thursday, at the Farm Bureau office. Jim Angel, Illinois state climatologist, and Cory Winstead, MaxVisor representative for AgriVisor LLC, will be the speakers. Call the Farm Bureau office at 753-5200 for reservations or more information. • Farm Bureau Young Leaders will sponsor a Future Farmers of America acquaintance day Friday in Macomb. Lunch and a tour of the Western Illinois University farm will be included. TEPHENSON — Farm Bureau has a summer program assistant position available for a college student for June 3 through midAugust. Priority is given to students with an ag background, but that is not a requirement. Applications are available at the Farm Bureau office or at {stephensoncfb.org}. Call the

P S

Farm Bureau office at 2323186 for more information. Application deadline is Feb. 28. • Farm Bureau will sponsor a second trip to Michigan and Ontario, Canada, August 12 through 18. Call the Farm Bureau office for more information or go to {stephensoncfb.org}. • Farm Bureau will sponsor an Internet basics class on Monday, March 11, and a basic Word and Excel class on Tuesday, March 12. Classes are free for members, $10 per class for non-members or $15 for both classes for non-members. Call the Farm Bureau office at 232-3186 to register. • Farm Bureau will sponsor a 2013 “Stephenson Scenes” photo contest. Details are available at the Farm Bureau office or at {stephensoncfb.org}. NION — A truck regulation and crop insurance seminar will be from 8 to 10 a.m. and 10:30 a.m. to noon Tuesday, Feb. 26, at John A Logan College. Kevin Rund, Illinois Farm Bureau transportation expert, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Call the Farm Bureau office at 833-2125 for more information or to register. • Stroke Detection Plus will offer ultrasound screenings for detection of stroke, abdominal aortic aneurysm, peripheral arterial disease, and osteoporosis from 9 a.m. to 4:30 p.m. Wednesday, Feb. 27, in the Farm Bureau basement. Cost is discounted to $100 for Farm Bureau members. Call 1-877-7328258 to schedule an appointment. ERMILION — Farm Bureau will host a crop insurance and truck regulation seminar from 8 a.m. to 12:30 p.m. Friday, Feb. 15, at the Danville Area Community College Bremer Center auditorium. Kevin Rund, Illinois Farm Bureau transportation expert, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Register at {vcfb.info} or call 557-3207. ASHINGTON — Farm Bureau will sponsor a bus trip to the Louisville Farm Show leaving at 6 a.m. Wednesday, Feb. 13. Cost is $55. Registration deadline is Wednesday.

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

FarmWeek Page 14 Monday, February 4, 2013

profitability

Weed challenges put pressure on pesticide supplies BY JEFF BUNTING

With the 2012 growing season in the rear-view mirror, it’s time to think about the growing season of 2013. It appears we will plant a record number of corn and soybean acres across the U.S., but in Illinois there doesn’t appear to be a major acreage shift. Concerns about lack of soil moisture from what appears to be a “dry” winter continue to escalate. This is something to keep a close eye

on as you plan for this year’s crop. Today’s crop protection products face a challenge in terms of having enough supply to manage pests over the course of the growing season. Many of these challenges come from a global focus on weed management by controlling herbicide-resistant weeds to insect pest outbreaks to the regulation of certain chemistries that increases demand on other chemistries.

We have seen what a common herbicide such as glyphosate has been through from the high prices back in 2007 to the lows in 2011, and the impact on supply and price worldwide. Since Jeff Bunting the adoption of glyphosate-resistant soybeans, the price of glyphosate has changed sig-

this spring could boost supplies and weigh on the markets, according to Aaron Curtis and Bob Trimpe, commodity risk consultants with MID-CO Commodities, a subsidiary of GROWMARK. “(Soybean) prices likely are range-bound for now,” Curtis said last week at MID-CO’s

winter outlook meeting in Bloomington. “If the weather cooperates, prices will trend lower.” Trimpe said he also believes corn prices also could trend lower in coming months. “We’ll plant a lot of acres (Informa recently projected U.S. farmers this spring will plant close to 99 million acres of corn),” he said. “If we have average to above-average weather and a big crop, it could take prices down to $5 (per bushel).” Soybean prices currently are being supported by tight supplies and strong export demand. Soybean exports to China are 70 million bushels ahead of last year’s pace, despite some recent cancellations, Curtis noted. Meanwhile, ending stocks of corn for 2012/13 are just 602 million bushels, down 387 million bushels from a year ago. It’s the lowest ending stocks estimate for corn in January since at least 1974, according to MID-CO. “Demand (for beans) is still outpacing production,” Curtis said. “If you still have beans, continue to get those moved.” Corn exports continue to be dismal and are expected to total less than 1 billion bushels for the first time since 1971-

nificantly over the last 15 years. Today, we continue to see tight supplies of glyphosate as we have increased the rate applied per acre to increase weed control. The glyphosate market is global, and in the next few years, many of the major manufacturers will be launching new technologies that use glyphosate as the base ingredient while adding new chemistries either as a premix or a standalone product.

The supply/demand situation is not just with glyphosate but also with other chemistries such as dicamba, 2,4-D, atrazine, and more. This response is a product of the global demand for pesticides needed to deal with the weed challenges that we face today. Jeff Bunting is GROWMARK’s crop protection marketing manager. His email address is jbunting@growmark.com.

Expectations of large crops could weigh on commodity markets BY DANIEL GRANT FarmWeek

The current combination of tight crop supplies and strong prices could transition to ample supplies and lower prices in coming months. A record soybean crop in South America and historically high corn plantings in the U.S.

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.

Range Per Head $32.25-$54.06 $63.26-$63.78

Weighted Ave. Price $43.16 $63.47

This Week Last Week 100,905 79,976 *Eastern Corn Belt prices picked up at seller’s farm Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $85.91 $82.19 $63.57 $60.82

Change $3.72 $2.75

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week $124.89 $122.13 $2.76 $125.00 $122.88 $2.12

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 $146.27 $145.17 $1.10

Lamb prices NA

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/24/2013 40.7 22.3 21.1 1/17/2013 49.0 22.5 11.6 Last year 41.8 18.8 22.8 Season total 950.4 584.6 305.5 Previous season total 718.4 657.6 671.6 USDA projected total 1345 1050 950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

‘If the weather cooperates, prices will trend lower.’ — Aaron Curtis Commodity risk consultant MID-CO Commodities

72, Trimpe noted. But barge transportation issues caused by low water levels on the Mississippi River don’t appear to be the main culprit of slow corn exports or recent cancellations of bean orders. Corn simply was cheaper to buy from other countries while Brazilian soybean production could be starting to replace U.S. supplies in the world market.

“Are we missing potential because we can’t get beans to the Gulf ?” Curtis questioned. “It’s hard to tell. There was a little slow-down at the end of (December), but things mostly stayed on course (in January). The heavy rains should continue to help” shippers move crops on the river. The weather not only will impact river levels, but also the overall crop outlook and prices. “I think the weather will dictate the flat price (of corn),” Trimpe said. “It may struggle unless they really have some problems” in South America. Eric Apel, ag meteorologist with Mobile Weather Team, told those at the MID-CO meeting that the forecast for South American weather was mostly favorable for crop production.

U.S. beef exports to Japan poised to grow The easing of beef import restrictions in Japan, which took effect Friday, is expected to provide a significant boost to the U.S. cattle industry. Japan on Friday began accepting shipments of U.S. beef from cattle that are less than 30 months of age. The previous restriction in Japan limited imports of U.S. beef to cattle that were less than 20 months of age. The restrictions were put in place as a precaution against BSE. “American ranchers and beef companies can now increase their exports of U.S. beef to their largest market for beef in Asia,” said Ron Kirk, U.S. Trade Representative. The easing of trade restrictions in Japan also is expected to help the U.S. export a record amount of ag products this year, according to Tom Vilsack, ag secretary.

Japan, even with the tighter restrictions last year, was the second-largest export market for U.S. beef with purchases through November that totaled $849 million. Japan, prior to its ban on U.S. beef in 2003 imported $1.3 billion worth of U.S. beef annually. “This is great news for cattlemen and is a significant milestone in our trading relationship with Japan,” said J.D. Alexander, president of the National Cattlemen’s Beef Association. “This move is an important step forward in paving the way toward greater export opportunities to one of our largest export markets.” The U.S. Meat Export Federation recently projected U.S. beef exports will increase from 2.49 billion pounds in 2012 to a record-high 2.73 billion pounds this year. — Daniel Grant

Page 15 Monday, February 4, 2013 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Watch K.C. July wheat futures Midwestern corn and wheat farmers need to note the activity in the Kansas City July 2013 wheat futures. As the price of hard red wheat raised in the Great Plains goes, so goes the prices of soft red wheat and corn to a lesser extent. In the wake of the Jan. 11 USDA reports, one thought that surfaced concerned the 1995-96 market features and price action. Both wheat and corn prices reached new record highs in the summer of 1996, the only two commodities to do so at that time. The wheat crop had gone into dormancy that winter in poor to mediocre condition. The 1995 corn crop was a below trend crop but not enough to call it a drought crop. China was a steady buyer of corn from the U.S. from late 1995 into early 1996. Feed buyers knew that corn supplies were going to be tight in the summer of 1996. But they were counting on a good wheat crop to extend old-crop corn supplies to the 1996 corn harvest. The March 1996 quarterly corn stocks were a little tighter than expected. But it was the emergence of a Southern Plains drought in April 1996 that set in

motion the move to new alltime highs for wheat and corn. K.C. July wheat futures rose 40 percent to a $6.95 high during April 1996. That forced feed users to scramble to cover needs, carrying July corn prices to a $5.54 high in July. This year, corn fundamentals are nearly as tight as they were in 1996. The wheat crop in the Southern Plains is in significantly worse condition. Feeders may need wheat to help extend a tight supply of corn until new-crop harvest begins. While feeding doesn’t capture trader’s attention on a week-to-week basis, it should be an underlying positive force for corn prices. Until significant moisture arrives in the Southern Plains, one could say the same for wheat. But just because the potential for a poor wheat crop exists, it is not guaranteed. Spring conditions and crop ratings are more closely related to wheat yields than the winter ratings. If spring rains come to the Great Plains, wheat prices could stall. They might even turn down. That would weigh on corn prices. But if rains don’t come, K.C. July could move to a new contract high, carrying soft red wheat and corn prices with it. Like 1996, K.C. July wheat futures may offer insight into what lies ahead for soft wheat and corn as trading action unfolds the next few months.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

Cents per bu.

ü2012 crop: Even though the rally in corn prices may temporarily stall, it looks as though there should be more upside potential. Use a rally above $7.50 to make catch-up sales. Plan to add a sale if March reaches $7.70. Check the Hotline. ü2013 crop: New-crop prices are struggling, but there’s still potential to move slightly higher. Use rallies near $6 for catch-up sales. Plan to add to sales if December moves to $6.15. Check the Hotline. vFundamentals: Fundamentally, corn continues to struggle, even though the supply/demand projections point to an extremely tight situation come summer. In the short term, news has a negative bias to it with both exports and the grind for ethanol remaining smaller than the necessary paces. Potential feed demand is the biggest positive, but that is not a consistent “market making” news feature. Weather is cutting into the potential Argentine crop, but not enough to have a significant impact.

Soybean Strategy

ü2012 crop: Argentine weather has been the guiding feature carrying prices upward. Even though prices broke after pushing to a new high, further upside potential is possible. Price another 10 percent if March futures hit $15. ü2013 crop: Increase newcrop sales to 30 percent with November futures above $13.25. vFundamentals: As much as anything, the action in the soybean market is a function of South American weather, specifically Argentine weather. A three-week warm, dry pattern lifted prices on fears it could lead to a significant drop in output. But the latest forecasts tend to suggest that pattern is poised to shift, limiting the possibility that the crop there might drop below 50 million metric tons. Brazilian potential still looks good, even though early harvest progress has been slow, limiting movement into the world pipeline.

ûFail-safe: If March soybeans close below $14.40, make the old-and new-crop sales.

Wheat Strategy

ü2012 crop: Wheat prices have shifted into a choppy, sideways pattern. If Chicago March can penetrate the $7.90 resistance, it could move up to the $8-$8.14 level. Wait for a bounce back to the $7.87 region before making any needed catch-up sales. ü2013 crop: If you failed to pull the trigger on the last sale, wait for a bounce back to $8 on the Chicago July contract. New-crop sales stand at

35 percent complete. vFundamentals: Wheat experienced brief upside momentum on spillover support from other commodity markets. The recent monthly condition ratings indicated the hard red winter crop deteriorated further. The most recent USDA report indicated only 20 percent of Kansas’s winter wheat crop was in good to excellent condition. The region has picked up only minimal rainfall this winter, and the current weather maps are not looking promising for any significant moisture, at least in the near-term.

FarmWeek Page 16 Monday, February 4, 2013

perspectives

Catching flies with honey Undoubtedly, America’s food supply is one of the greatest in the world. Our food production couples the best of conventional farming with historical and organic practices to give consumers an infinite variety of safe, high-quality food. So why are there still modern agriculture skeptics? Some blame social media. Critics say that anyTRACY GRONDINE one with a computer and an opinion can spread misinformation about agriculture. But bloggers shouldn’t so easily be dismissed. That’s where many consumers get their information and form their opinions — on the blogosphere. Just as importantly, more and more reporters are following blogs, Facebook, and Twitter for story leads and background information. So the important question really is, what can farmers do to foster relationships with skeptics that result in productive dialogue about modern agriculture? Many farmers and ranchers are headed in the right direction. They are reaching out to consumers through

social media to advocate past the farm gate. They are designing business plans based on consumer demand. And, they are meeting the skeptics head on with transparency into their farms and sound reasoning behind their business decisions. And guess what? These farmers are coming out on top, finding new customers, and providing useful information to the next generation of buyers. They understand that consumers have questions about their food — and rightfully so! And they are doing their best to address those questions. Because of the tech-savvy world we live in, farmers know that people get their information online in real time. And if you can’t beat them, join them! In just a few short years, farmers have seen the beginning of a shift in consumer opinion about agriculture. And while there are still some skeptics, at least meaningful dialogue is taking place. Farmers are being innovative, reaching out to opinion leaders and shapers through social media and other means — whether it’s in a newsroom or a classroom, at a local business meeting, or in the blogosphere. We can no longer play the blame

game when it comes to agriculture critics. Either people like the way we do things or they don’t. But they should at least have the opportunity to know the facts and reasoning behind modern farming practices instead of being dismissed or criticized.

And while we can’t win everyone over, we sure can try. But, as the old adage goes, it’s easier to catch flies with honey than with vinegar. Tracy Grondine is director of media relations for the American Farm Bureau Federation. Her email address is tracyg@fb.org.

There’s nothing plain about vanilla or its historical significance

It would probably come as no surprise that vanilla is the most popular flavoring in the world. The subtleness of its flavor causes some people to not really think of it as a flavor at all but rather as the basic taste of such foods as cupcakes, cookies, ice cream, and other confections. Anyone who has baked cookies and cakes is familiar with vanilla flavoring. It hasn’t always been that way, though. When vanilla was first MARI LOEHRLEIN used alone as a flavoring by the British apothecary to Queen Elizabeth of England, she was so taken by its flavor that she had it added to everything she ate or drank. The French soon began adding it to other items, such as ices, tobacco, and perfumes. The American connection to vanilla occurred back in 1789 when Thomas Jefferson tasted it in France. He wanted some after he had returned to Philadelphia, only to discover that no one knew what it was. After ordering some from France, Jefferson enlightened his friends and acquaintances about it. It eventually found its

way into ice cream, pharmacies (as a stomach sedative), and as an extract. But, like so many now common pantry spices and flavorings, vanilla didn’t originate in Europe. It was brought there from Mexico by Cortes, along with cacao, indigo, and cochineal dyes. Vanilla flavoring comes from the pod-like fruit that has come to be known as a vanilla “bean.” The Spanish word “vainilla” means “little pod.” The plant itself is a vining type of orchid with large, thick waxy leaves. Like many orchids, it grows on trees in shaded places, with thick, fleshy roots grasping the bark rather than growing in soil like most plants do. The orchid is large and showy, creamy greenish-yellow in color, and about two to three inches high and wide. In order for a fruit to form, the flower must be pollinated. But this is no small feat, given that only one species of the small melipona bee, some ants, and hummingbirds pollinate the flower in the wild. Natural pollination produces too few pods for commercial production. Thus, people are required to perform the task in order to ensure fruit set. The Totonacs of ancient Mexico discovered a method by which to accomplish this,

but they kept it secret, thus allowing themselves a monopoly on vanilla beans for several hundred years. The Totonacs not only used vanilla to flavor their food and drinks, they also considered it to be an effective medicine, and aphrodisiac (as did Europeans of renaissance times), and an insect repellent. The process required to turn a vanilla bean into vanilla flavoring is so complex it is a wonder anyone ever figured it out. But the Totonacs did — at least a thousand years ago. The method was kept secret for a long time, and involved brief scalding, “sweating,” sun drying, and fire-drying. The pods themselves had to be picked at the proper time — not too green, but before splitting open and releasing the thousands of tiny seeds contained inside. The French taste for vanilla led to plantations in many French-held tropical colonies. But it wasn’t until a couple of scientists were able to learn what the Totonacs had long known about pollination and cultivation of this curious orchid that world production outside of Mexico could flourish. Nowadays, there is vanilla extract and artificial vanilla flavoring. But you can still flavor foods with vanilla the “old-fashioned” way — by stewing the vanilla bean in milk for custard

or ice cream, or kneading the split bean with dough for sweet bread. This is really the way to go if you want to enjoy all the aromas and flavors that vanilla has to offer. Once you’ve tasted it, you’ll agree. There is nothing

plain about vanilla. Mari Loehrlein is a professor of horticulture and landscaping at Western Illinois University’s School of Agriculture, Macomb. Her email address is MMLoehrlein@wiu.edu.