New IPPA President Curt Zehr looks at challenges and opportunities for the pork industry. page 3
Monday, February 9, 2015
Remember to vote in the state beef checkoff during the Illinois Beef Expo set for Feb. 19-22. page 4
An increasing number of Illinois farmers connect with food buyers through an IFB program. page 11
EPA: Comments prompt change to WOTUS rule
Two sections Volume 43, No. 6
FIRST SIGN OF SPRING?
BY DEANA STROISCH FarmWeek
Spring calving season appears in full swing on the Uhlman farm near Tremont as cows and their new calves forage in the snow. GROWMARK Board Director Dave Uhlman and his brother, Rob, and Dave’s son, Nick, maintain a 110-head herd of Angus cattle. They expect 106 calves to be born this spring. The Uhlmans also grow corn, soybeans, wheat and pumpkins. (Photo by Ken Kashian)
During questioning from members of Congress last week, Environmental Protection Agency’s (EPA) Gina McCarthy said a proposed rule redefining “waters of the U.S.” will change based on public comments before it’s finalized this spring. “We’re going to make changes in a variety of areas where the comments have been very robust and clear,” said McCarthy, EPA administrator. “And we’ll respond to those. We are intending to use this rule-making process in the way we described it. We’re going to protect what we need to. We are going to leave alone what we don’t.” McCarthy wouldn’t specify when the final rule would be published other than to say “this spring.” McCarthy and Jo-Ellen Darcy of the Army Corps of Engineers testified during a rare joint hearing of the Senate Committee on Environment and Public Works and the House Committee on Transportation and Infrastructure. Darcy said the agencies received nearly 1 million
comments on their proposed rule, which opponents say expands federal jurisdiction over waters far beyond what Congress intended. McCarthy continued to say the proposed rule merely clarifies which bodies of water fall under federal jurisdiction. She said the rule also will: • Clarify that groundwater isn’t subject to jurisdiction under the Clean Water Act. • Reduce federal jurisdiction over ditches. • Maintain a longstanding exemption for previously converted cropland and wastewater treatment systems, including ponds and lagoons. “Using input from our discussion with the agricultural community, the EPA and the Corps are coordinating with USDA to ensure concerns raised by farmers and the agricultural community are effectively addressed in the final rule,” McCarthy said. Adam Nielsen, Illinois Farm Bureau’s national legislative director, remains skeptical. “I wish we could say we’re optimistic the final rule will address each of agriculture’s
many deep concerns, but we’re not,” Nielsen said. “This process ignored the longstanding partnership between the federal government and states on water regulation, was developed with limited input from the regulated community, and seems designed go into effect as soon as possible.” EPA has withdrawn its “interpretive rule” associated with the proposal as required by the federal spending bill. Members of Congress — and agricultural groups such as IFB — continue to fight the original rule as well. “We are determined to stop the rule and go back to square one,” Nielsen said. The Waters of the United States Regulatory Overreach Protection Act of 2015, H.R. 594, would block EPA and the Corps from finalizing or enforcing the currently proposed rule and require the agencies to consult state and local officials to develop a new one. The bill, introduced by Rep. Paul Gosar, R-Ariz., has about 125 co-sponsors. During last week’s hearing, Sen. John Barrasso, R-Wyo., said he plans to introduce similar legislation.
grouped into three categories: economic growth and jobs package, student career and success package, and taxpayer empowerment and government reform package. The governor encouraged lawmakers to consider the overall package and not individual initiatives. He offered to work “closely together with each and every one of you,” and added “all of us have a duty to serve all the people of Illinois; those who voted for us
as well as those who did not vote for us.” Rauner repeatedly suggested Illinois has lost its competitive edge and made several comparisons to neighboring states, especially Indiana. “Our property taxes are out of control and are crushing middle class families,” Rauner said. He stated an average Illinois homeowner pays property taxes three times higher
Periodicals: Time Valued
Rauner sets ambitious plan to make state ‘competitive’ BY KAY SHIPMAN FarmWeek
Gov. Bruce Rauner delivered a checklist that ranged from broad, ambitious goals to specific details in his first State of the State address. The next day, Bruce Rauner he continued selling his ideas with four pub-
lic speeches around Illinois. “It’s now or never for Illinois. It’s time to act,” the new governor told a packed House chamber. Rauner warned assembled legislators that each of them would find among his proposals ideas they wouldn’t like and others they would “like a lot.” Before the speech began, the Rauner administration distributed a list of 44 bullet items, entitled “The Illinois Turnaround.” Items were
See Rauner, page 2
www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, February 9, 2015
KEYSTONE PIPELINE PROJECT COULD FACE VETO — The House and Senate have passed legislation mandating completion of the Keystone XL pipeline. But President Barack Obama could veto the measure. The Senate’s approval came after three weeks of debate on 41 amendments. The controversial project is a proposed 1,179 mile, 36inch-diameter pipeline that would carry crude oil from Canada to Nebraska.
MARKING FFA CONTRIBUTIONS IN ILLINOIS — FFA members, advisers and supporters honor 80 years of FFA tradition and contributions Feb. 21-28 during National FFA Week. Nationwide, more than half a million FFA members will participate in activities. In 2013-14, more than 29,000 Illinois high school and junior high students and more than 516,000 elementary students were served by the agricultural education line item within the Illinois State Board of Education budget. Increasingly, Illinois’ agricultural courses fulfill high school graduation requirements. About 77 percent of ag programs offer classes for which students earn graduation credit for math, science or consumer economics.
WHEAT CELEBRATION BEGINS — If you’re attending the Illinois Wheat Forum Feb. 17 in Mount Vernon, plan to have a piece of cake in honor of the Illinois Wheat Association’s (IWA) 20th anniversary. The forum will kick off a yearlong celebration of the milestone. Charter IWA members will be also be honored at the forum.
ORGANIC SURVEY UNDER WAY — Organic farmers should soon receive surveys from USDA seeking information that could lead to enhanced federal organic programs. USDA statistics show total organic product sales by U.S. farms and ranches increased 83 percent between 2007 and 2012. The survey looks at many aspects of organic agriculture, including production, marketing practices, income and expenses. Farmers can mail surveys by Feb. 13 or fill out the survey online at {agcensus.usda.gov} by April 3. U OF I DAIRY JUDGES PLACE THIRD — A team of University of Illinois dairy judges nabbed third place at the recent 2015 Southwestern Exposition and Livestock Show in Fort Worth, Texas. Samantha Ropp, Jessica Telgmann, Brett Woker and Dylan Reed competed against 14 other teams. Ropp placed seventh in individual rankings, and Telgmann placed eleventh in reasons. As a team, they placed third in Holsteins, fifth in Brown Swiss and fourth in Jerseys. Woker placed sixth individually in Jerseys.
(ISSN0197-6680) Vol. 43 No. 6 February 9, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.
Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2015 Illinois Agricultural Association
STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso (morso@ilfb.org) Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
Obama releases his $4 trillion budget
BY DEANA STROISCH FarmWeek
President Barack Obama’s $4 trillion budget plan for fiscal year 2016 includes “crippling cuts” to crop insurance subsidies, according to agricultural groups. More than 30 organizations, including American Farm Bureau Federation, wrote to members of the U.S. House and Senate Budget Committees last week in opposition. “The agriculture community is committed to the belief that balancing the federal budget is important, which is why the industry supported the passage just last year of a farm bill that was estimated to reduce the deficit by $16.6 billion,” the letter reads. “Attacking farmers’ most important risk management tool only weakens the farm safety net in the bipartisan farm bill that Congress carefully crafted after years of deliberation and more than 40 hearings.” The letter goes on to warn that “arbitrary funding reductions only weaken the system and ultimately shift risk exposure back to taxpayers.” Obama’s budget proposal, submitted to Congress last week, calls for reducing crop insurance subsidies by $16 billion over 10 years. The premium subsidy would be reduced by 10 percent for policies that include a harvest price option. Farmers also wouldn’t be able to purchase
Rauner
additional coverage for prevented planting. Illinois Farm Bureau’s Adam Nielsen said the organization will continue to fight attempts from the president or Congress to weaken the crop insurance program. “Crop insurance is the cornerstone in the farm safety net, and unfortunately, it has become a lightning rod of undeserved criticism,” said
‘Crop insurance is the cornerstone in the farm safety net, and unfortun a t e l y, i t h a s become a lightning rod of undeserved criticism.’ — Adam Nielsen Illinois Farm Bureau
Nielsen, director of national legislation and policy development. “Farmers agreed to eliminate direct payments to preserve crop insurance in the new farm bill. It’s disappointing to already see efforts to cut risk premium support at a time of declining prices.” Obama’s proposed budget also recommends creating a single food safety agency, increasing the capital gains tax and repealing the “stepped-up provision.” Other highlights:
Continued from page 1 compared to a similar Hoosier homeowner. The governor highlighted education as “the most important thing we do.” Rauner urged increased funding for elementary and secondary education and for early childhood education. He advised investment in technical and vocational training. “Let’s end the era of cutting funding for technical training and community colleges,” he said. However, Rauner didn’t explain funding details. Kevin Semlow, Illinois Farm Bureau director of state legislation, wasn’t surprised. “It was not surprising that the governor provided no explanation for how he plans to fund these proposals,” Semlow said. Policy experts expected not to hear Rauner’s funding proposals last week, but anticipate those will FarmWeekNow.com come Feb. 18 in the governor’s first budget mesSee full coverage of Gov. Rauner’s State of the State address at sage, Semlow said. FarmWeekNow.com. Rauner also raised the need to reform the state’s “antiquated tax system whose base is too narrow,” but gave no specifics on what that might entail. Rauner’s economic ideas include: • Increasing the minimum wage by 25 cents every year for seven years from $8.25 to $10 in 2022; • Reforming workers’ compensation; • Passing a constitutional cap for reasonable lawsuit judgments; • Bringing competitive bidding to public works projects; • Limiting prevailing wage requirements and eliminating project labor agreements; • Restructuring the state motor fuel tax; and • Creating local employee empowerment (right to work) zones.
• Infrastructure: Includes a six-year, $478 billion surface transportation bill intended to fix aging transportation systems and create jobs. The proposal represents a $176 billion increase over last year’s request. The projects would be partially paid by a 14 percent tax on U.S. companies’ overseas profits. • Tax extenders: Permanently extends Section 179 small business expense deductions at the $500,000 level and gives small businesses a permanent $1 million bonus depreciation. • Accrual accounting: Requires farmers to shift to accrual accounting once they reach a $25 million threshold. • Capital gains tax: Increases the top capital gains tax rate to 28 percent from the current 23.8 percent rate. Inherited property would trigger the capital gains tax. The tax would be delayed for inherited small family-owned-and-operated businesses until the assets are sold. IFB strongly opposes the plan. • Food safety agency: Consolidates food safety functions, a suggestion similar to that of the Safe Food Act of 2015. The legislation, co-sponsored by U.S. Sen. Dick Durbin, D-Ill., calls for authority over food safety inspections, enforcement and labeling — currently split among 15 agencies — to be transferred and consolidated into one agency.
What they’re saying “I thought the governor did a very good job of setting out his agenda for Illinois. We in the legislature are most anxious to receive that agenda, take it under consideration, assign it to committees and give it full consideration.” Speaker Michael Madigan D-Chicago “This is the first time we’ve had a far-reaching plan to turn the state around … I hope there is bipartisan effort.” Rep. Joe Sosnowski R-Rockford “There were positive things and things I’m not fond of. The question is what happens when we see the details.” Sen. Kwame Raoul D-Chicago “He had good priorities to make Illinois competitive … He talked about important work in a bipartisan way.” Sen. Bill Brady R-Bloomington “I’m encouraged to hear his priorities. We’ve tried to make property tax relief … and structural changes to make Illinois more competitive.” Rep. Robert Pritchard R-Hinckley “This was a very thoughtful speech … It was good to talk about goals, but how will we pay for it?” Sen. William Haine D-Alton
New IPPA president sees active year ahead for industry
Page 3 • Monday, February 9, 2015 • FarmWeek
BY DANIEL GRANT FarmWeek
Curt Zehr, a hog farmer from Washington, places a great deal of emphasis on adding value to his operation. He also believes the ag industry can overcome challenges in its path, such as the recent outbreak of porcine epidemic diarrhea virus (PEDV) that decimated swine herds on many farms last year. “It was a challenging year, to say the least,” said Zehr, who last week was elected president of the Illinois Pork Producers Association (IPPA). “But the Lord’s been good to us. We’ve been able to sustain our business.” The fifth-generation pork producer built a new house and hog facilities in the past year after his farm was devastated by a November 2013 Curt Zehr tornado that struck the Washington area and other parts of Illinois. Zehr currently focuses on four “profit centers” on his farm to add value to his commodities and move
the operation beyond the recent challenges. He sells market hogs, operates a genetics division, produces and sells grain, and sells some of the pork produced on his farm through a local meat label. “It’s a way to stay in the pork industry,” said Zehr, who has a 2,500 head farrow-to-finish operation. “We bring more value per pig through genetics and through the meat.” The demand for locally grown food continues to skyrocket. But while farmers seek to fill that FarmWeekNow.com demand, they also have Visit FarmWeekNow.com to listen to Rita Frazer’s interview with a responsibility to edunew IPPA President Curt Zehr. cate consumers about modern food production, according to the new IPPA president. “One of my main goals is to maintain and expand the tradition (at IPPA) of providing a voice for swine producers,” he said. “There’s more people two to three generations removed from the farm,” he continued. “We need to educate consumers about how their food is
raised. We need to explain what we do (in production agriculture) and why we do it.” IPPA also must continue to maintain a strong presence with lawmakers as they consider bills that could affect the ag industry. “We need to continue to have a strong voice in Springfield,” Zehr said. “They need to know we have a big economic impact on the state.” The IPPA president expresses cautious optimism when it comes to the pork industry’s recent battle with PEDV. He believes the industry possibly turned a corner. “Our industry spent millions of dollars to learn more about this disease,” he said. “We know more than we did a year ago. “We ramped up biosecurity to levels never seen before to prevent it (PEDV),” he noted. “So far, it’s not happening (outbreaks) to the extent it was a year ago.” Illinois Pork Expo, the state’s largest pork trade show, last week ended its long run in Peoria. The event will be held next year (Feb. 16-17) at the Prairie Capital Convention Center in Springfield, and will join IPPA’s annual legislative day.
Crop farmers gravitate back to livestock production Livestock specialist: Manure provides The recent era of farm specialization saw many farmers focus on crop or livestock production, sometimes one at the expense of the other. But a movement back toward farm diversification seems to be gaining momentum in Illinois due in part to the state’s abundant supply of quality feed sources and infrastructure that benefits animal agriculture. Hog industry representatives and crop farmers who recently entered the livestock business discussed the situation last week at the Illinois Pork Expo in Peoria. “Crop farmers (dealing with lower crop prices and high fertilizer costs) are looking at manure and how they can capture that value,” said Al Muhlenbruck, marketing and relations specialist with Tri-Oak Foods. “There also are a lot of people looking at it (livestock production) for transitional planning and equity growth.” R.D. Waddington, a farmer from Assumption, exited the hog business when prices plummeted in the late 1990s. But the Waddingtons recently put up a new barn and are producing pork again to add revenue so their son can join the operation. “We were out of the hog business 15 years and to get
back in worked for us,” Waddington said. Kurt Kelso, a corn and soybean farmer from Macomb, also recently added a wean-tofinish hog facility on his farm. “We did this because we raise corn and soybeans, which we turn into feed, and then we use the manure (produced by the hogs to fertilize the crops),” he said. “It goes full circle. We like using our own products.” Feed availability and infrastructure, such as hog processing plants and feed mills, are driving much of the renewed interest in hog production in Illinois. Record pork prices the past year didn’t hurt the cause, either. Tri-Oak recently purchased a feed mill in Bushnell (McDonough County) and plans to
The Illinois Soybean Association (ISA) took home seven first-place honors at the recent National Agri-Marketing Association (NAMA) Region IV Best of NAMA awards competition. ISA and Illinois Farm Families (IFF), a coalition involving Illinois Farm Bureau which ISA supports, received the following firstplace honors: • Illinois Soybean Book Donation public affairs/issues management program,
• IFF producer or companyfunded public relations campaign to consumers, • “What Did You Have For Dinner Last Night?” ISA persuasive writing article, • “Research Finds SoybeanAsian Carp Feed Blend More Sustainable for Aquaculture Industry” ISA news release to consumer media, • ISA Biotechnology Round Table, • ISA 50th Anniversary Celebration internal event, and • ISA Animal Agriculture
Kurt Kelso, right, a crop farmer from Macomb who recently constructed a hog facility to diversify his farm and capture value from the manure, discusses the hog business with Bryant Roosevelt, left, of Albion, at the Illinois Pork Expo in Peoria. (Photo by Daniel Grant)
boost hog production within about an 80-mile radius of the facility. Carlyle-based The Maschhoffs, which partners in hog production with 575 farm families in nine states, also seeks to expand hog production in Illinois, particularly in portions of west central Illinois, in the Galesburg area and south of Bloomington. “It’s a great way to diversify your farming operation,” said Matt Henry, senior business development manager with The Maschhoffs. “It can provide stable, long-term revenue, and manure is a natural hedge (against price volatility in the commercial fertilizer market).” Meanwhile, Cargill added about 1 million contract finishing spaces in the last six years and looks to continue to grow. Many of the finishing pigs for Cargill are raised in Illinois, Iowa and Missouri. “There’s more demand for finishing space,” said Tim Steinkamp, Cargill business development manager. “We would like to grow in northwest Illinois down to about Quincy along the I-72 corridor.” All three pork industry representatives said they offer a variety of contracts and building options farmers can consider to enter pork production. — Daniel Grant
‘total nutrient package’ for cropland
Anyone who still refers to livestock manure as “waste” certainly hasn’t done his or her homework. Manure provides a “total nutrient package” for cropland and improves overall soil health, according to Laura Pepple, University of Illinois Extension livestock specialist. “There are many benefits of manure as a fertilizer,” Pepple said last week at the Illinois Pork Expo in Peoria. “It’s the total nutrient package.” Manure provides the soil with nitrogen, phosphorus and potassium found in many commercial fertilizers. But animal excrement also contains a range of micronutrients including sulfur, zinc, manganese and copper, not found in many commercial fertilizers. Manure subsequently boosts organic matter Laura Pepple in soil. It also increases the water-holding capacity of soil and reduces soil erosion. “There are additional benefits (of manure) beyond the nutrient package,” Pepple said. “If you’re buying manure, there’s more bang for your buck.” Farmers who use manure as fertilizer must do more planning, however. Nutrient rates in manure vary and not all nutrients from manure are available to plants in the first year. Meanwhile, any changes to swine diets also can affect nutrient rates of the manure. “Manure needs to be managed,” Pepple said. “Get manure samples annually.” She urges farmers to establish a nutrient management plan before they build hog barns or buy manure, and to conduct a nutrient analysis of the manure each year. Manure should be injected or incorporated into the soil at a depth of about 6 to 8 inches as soon as possible to minimize N losses. Those practices also help reduce odor. So, what can all this be worth to farmers’ bottom lines? Pepple estimates the manure from a 2,400 head hog facility can be worth about $37,080 each year. Once application costs of $4,320 are subtracted, it provides a total value of $32,760. — Daniel Grant
Illinois Soybean Association, Illinois Farm Families nab awards
News association newsletters directed to external dealers, distributors, sales reps or veterinarians. ISA and IFF also captured several Merit Awards:
• ISA 2014 Yield Challenge local multimedia campaign, • IFF summer retail advertising campaign directed at consumers, • ISA 50th Anniversary congratulations single-page ad, • Illinois Soybean Growers: “How to Become an Advocate” advertorial, • ISA Transportation Toolkit, a three-dimensional direct mail piece targeted toward agribusiness professionals, • IFF website, {watchus
grow.org}, with an educational focus, and • IFF Facebook page. All first place and merit entries advance to the national Best of NAMA competition. Winners will be announced at the 2015 Agri-Marketing Conference April 15 in Kansas City. NAMA, the premier association for agri-marketing and agribusiness professionals, sponsors the competition to celebrate the best work in agricultural communications during the past 12 months.
Beef producers begin long process of rebuilding herd
FarmWeek • Page 4 • Monday, February 9, 2015
BY DANIEL GRANT FarmWeek
Expansion of the beef cow herd technically began last year. But don’t look for an uptick in supplies or lower beef prices any time soon. USDA, in its semi-annual update of cattle numbers late last month pegged the size of the U.S. cattle herd on Jan. 1 at 89.8 million head, up 1 percent from the same time in 2014. This marks the first increase in cattle inventory since 2007, according to Chris Hurt, Purdue University Extension economist. “There were multiple incentives to expand in 2014,” Hurt said. Record cattle prices proved the main driver of expansion followed by cheaper and more abundant feed due to record
‘There were multiple incentives to expand in 2014.’ — Chris Hurt Purdue University Extension economist
corn and soybean crops, along with retreating drought in the central and southern Plains that restored range conditions in some areas. Farmers responded by boosting the number of beef heifer replacements to 5.8 million head, up 4 percent from the previous year. It still could take years to significantly rebuild cattle numbers and beef supplies, though. USDA projects beef production this year will dip
Beef Checkoff vote, Expo begin next week
BY DANIEL GRANT FarmWeek
Next week figures to be a busy time for beef producers and possibly a step forward for beef promotion efforts in the state. Voting begins next Monday (Feb. 16) on a referendum to implement a voluntary 50-cent state beef checkoff in Illinois. Just three days later, the annual Illinois Beef Expo kicks off in Springfield. The fourday event will be held Feb. 19-22 at the Illinois State Fairgrounds. “I think there’s a number of good reasons to support a voluntary checkoff and keeping that 50 cents (per head) in the state,” said Alan Adams, a cattle farmer from Sandwich and president of the Illinois Beef Association (IBA). “Now I hope (cattle producers) take the next step and make an effort to vote.” Beef producers can cast a vote at Farm Service Agency offices around the state Feb. 16-20. Producers also can vote during the Illinois Beef Expo Feb. 19-22 at Booth 307. Producers who aren’t able to vote in person can obtain a form from the IBA office and mail in a vote Feb. 16-27. More information can be found at IBA’s website {illinois beef.com}. IBA previously collected the necessary 700 signatures to
trigger the statewide referendum in about half the expected time. IBA leaders then traveled the state to promote the state checkoff to fellow beef producers, and other farm and commodity organizations. The Illinois Farm Bureau board last month voted to support IBA’s effort to create a voluntary, state beef checkoff. “We’re pleased with all the groups in Illinois that have gotten behind our Vote Yes Coalition,” Adams said. “The first one in line was Farm Bureau. We greatly appreciate that.” Passage of a state checkoff would allow IBA to cooperate with local processors and markets to possibly create a state brand. It also could enhance digital marketing efforts to geographical areas, and boost educational and research opportunities for the beef industry, according to Adams. The IBA president not only encourages fellow producers to vote, but also to attend the Illinois Beef Expo next week. Illinois Beef Expo features the performance tested bull sale, quiz bowl, judging contest, junior show and trade show, among other activities. The trade show, which recently sold out of booth spaces, will be packed with industry products and services.
nearly 2 percent to 23.901 billion pounds and, for the first time since 1952, pork output (projected at 23.908 billion pounds) will surpass beef in the U.S. Chicken output, though, rules the roost as it could reach an all-time high of 39.206 billion pounds. “Beef will face strong competition from higher supplies of competitive means in 2015, where poultry supplies could be 3 percent higher and pork 4
to 5 percent higher,” Hurt said. “On the other hand, beef demand should benefit from moderate growth in consumer incomes and from lower fuel prices.” Since 2014 marks the first year of expansion in the beef herd in years, peak beef production on the new cycle may not arrive until early next decade, according to Hurt. Beef cattle prices this year are expected to remain historically high. “Almost half of the price increase that occurred in the second half of 2014, I can attribute as much to demand strength as I can tight supply,” said Glynn Tonsor, Kansas State University ag economist. “But as the tight supply part of the story eases, it’s going to become even more obvious the role of demand.”
Warren Rusche, South Dakota State University Extension cow/calf field specialist, advises cattle producers to develop strategies to produce and identify females in their herds that possess the genetics for the greatest probability of success to expand their herds. “Genetic selection for superior beef replacements doesn’t start when the heifers are chosen,” Rusche said. “The process begins much earlier when sires for those heifers are determined.” Farmers, along with simple growth rate, should consider identifying a seedstock provider, a number of estimated progeny difference indexes, individual production history and cow longevity (physical conformation) to grow their herds.
Hittin’ the road
Farm Bureau to host motor vehicle seminars Ten county Farm Bureaus will host on-theroad seminars in March to discuss farm exemptions from Federal Motor Carriers Safety regulations and other motor vehicle rules. Kevin Rund, Illinois Farm Bureau senior director of local government, will lead the sessions. In addition to new covered farm vehicle exemptions, he will discuss U.S. Department of Transportation numbers, weight limits, drug and alcohol screening, and commercial driver’s licenses. March meetings include: • 6:30 p.m. March 2, Shawnee Community College’s River Room, Ullin; • 9 a.m. March 3, Vienna Public Library, Vienna;
• 6 p.m. March 3, Illinois Equine Barn, Goreville; • 7 a.m. March 4, Franklin County Farm Bureau, Benton; • 10 a.m. March 4, Gateway FS Structures, Red Bud; • 7 p.m. March 4, Kaskaskia College Ag Building, Centralia; • Noon March 5, The Holiday, Olney; • 6 p.m. March 5, Wayne County Farm Bureau, Fairfield; • 7:30 a.m. March 6, Wabash County Farm Bureau, Mount Carmel; and • Noon March 6, White County Farm Bureau, Carmi. Attendees should contact the appropriate county Farm Bureau to register.
GROWMARK employees claim NAMA awards Several GROWMARK employees picked up firstplace honors in the recent Region IV Best of National Agri-Marketing Association (NAMA) awards contest. The GROWMARK Marketing Communications team and Naperville-based Rhea+Kaiser earned first place for the FS “Bringing You What’s Next” TV commercial. Other first place winners included Cassie Becker, pub-
lications and media relations specialist, and Julie Fontana, graphic designer, for GROWMARK SOURCE magazine. Megan Bachman, seed product marketing manager, teamed with Niki VanDuzer, marketing communications manager, and Custom Graphics for the 2015 Featured Products (Seed) Guide. Merit awards went to Bev Long, marketing communications manager, and Lance
Ruppert, agronomy marketing and IMP manager, who teamed with Rhea+Kaiser for the FS Green Plan at Frontier-Servco project. Bachman, VanDuzer and Miles Design claimed a merit award for the 2015 (Select Seed) Product Guide. All entries advance to national competition in April. NAMA comprises the nation’s largest association for professionals in marketing and agribusiness.
Local food sales hit $12 billion in 2014 Locally produced foods established a permanent spot in the U.S. food and beverage industry with sales taking 2 percent of the market, according to a new report on local food by Packaged Facts, a publisher of market research. In 2014, local food sales reached $12 billion. Packaged Facts estimated sales of locally produced foods will increase faster than the food industry as a whole and may reach $20 billion by 2019. In a November national consumer survey conducted by Packaged Facts, 53 percent of
respondents said they seek locally grown or produced foods. Nearly half of all respondents also said they would pay up to 10 percent more for these foods, and one in three would pay up to 25 percent more. Respondents’ reasons varied for supporting local foods. More than half said they want to support local food producers, while 40 percent said these products taste better. About one third of respondents also perceive local food as healthier and say they prefer to know where their food comes from.
Page 5 • Monday, February 9, 2015 • FarmWeek
DATA
LOVERS
UNITE T-Mobile’s network has more data capacity per customer than Verizon or AT&T. T-Mobile is designed differently. It’s designed Data Strong. ®
SWITCH TO T-MOBILE
™
#DataStrong
•
T-Mobile and the magenta color are registered trademarks of Deutsche Telekom AG. Data Strong is a trademark of T-Mobile USA, Inc. © 2015 T-Mobile USA, Inc.
•
T-Mobile.com
School funding reform returns to Statehouse FarmWeek • Page 6 • Monday, February 9, 2015
BY KAY SHIPMAN FarmWeek
A revamped effort to change how the state distributes school funding and to increase that “investment” launched early in the spring legislative session last week. During a Capitol press conference, Sen. Andy Manar, D-Bunker Hill, said he and Rep. William Davis, D-Hazelcrest, submitted their school funding reform legislation in its entirety in both chambers to be “part of the legislative process.” “We’re changing the (school funding) formula to reflect the needs of the state today,” Manar said. Manar noted the state’s neediest schools now receive a smaller percentage of state funds — albeit slightly — compared to when he initiated his reform Andy Manar legislation last year. He pointed to “gaping inequities” of per-pupil spending among wealthy and poor school districts. Manar admitted that he revamped his 2014 proposal based on comments and suggestions from educators and others. He still proposes to create a single, need-based funding formula to replace the
existing formula that distributes general state aid. Criteria on how state funding would be distributed would be weighted in favor of the neediest districts and students, according to the senator. New this year, Manar’s proposal recognizes cost of living differences among regions of the state and that would be accounted for in the state aid formula. In addition, the “adequacy grants” would take into account districts that tax at or above state averages, but spend below a calculated state funding adequacy target. Manar proposes to expedite a study to determine the adequate amount of funding for education and develop a base level of funding for adequate student growth. Davis, the bill’s House sponsor, emphasized school funding reform goes hand in hand with increased state funding for schools. “We can talk about reform and adequacy in the same conversation,” he told reporters. A representative of the state’s second largest school district urged the formula debate to move away from “the rhetoric of winners and losers.” Tony Sanders, CEO of the U-46 School District (Elgin), said, “If the formula is done right, I won’t have to worry.”
Farm bill: Your questions answered
Landowners have until Feb. 27 to decide whether to reallocate base acreage or update payment yields. Farmers can choose between Price Loss Coverage (PLC) or Agricultural Risk Coverage (ARC) at the county or individual level through March. In addition to speaking at informational meetings across the state, Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, answers FarmWeek reader questions each week about the decisions farmers face. This week’s question: Q: If PLC or ARC issue payments, when will farmers and landowners receive them? A: All three safety net options — PLC, ARC-county and ARC-individual — use the Market Year Average (MYA) price in their protection/guarantee and payment calculations. The MYA price isn’t determined until the end of the crop year. This means farmers must wait about a year to receive payment after harvesting their crop. For example: For corn and soybeans, the crop year starts Sept. 1 and ends the following Aug. 31. USDA must wait until after the end of August to determine that crop year’s final average price. Payments should be issued that October — basically a year after most corn and beans were harvested in Illinois.
If you have a question, please email it to dstroisch@ilfb.org, or mail it to: Farm Bill Questions, Deana Stroisch, 1701 Towanda Ave., Bloomington, Ill. 61701.
Two county FBs to host crude oil pipeline webinar
Members of Brown and Hancock County Farm Bureaus may attend a Feb. 11 webinar on the Dakota Access Pipeline at the respective county Farm Bureau offices. Laura Harmon, Illinois Farm Bureau attorney, will provide an update on the proposed pipeline project and answer members’ questions. Energy Transfer Partners, a Texas energy company, proposes to build the 1,100-mile pipeline, named Dakota Access, to transport crude oil from Bakken, N.D., to Patoka, Ill.
In recent filings before the Illinois Commerce Commission (ICC), the company revealed it still lacks a specific route and made easements with nine of 908 Illinois landowners within 500 feet along the proposed project route, and requested ICC grant it eminent domain, according to Harmon. For more information about the meeting, contact Brown and Hancock County Farm Bureaus. The ICC has scheduled the next status hearing for Feb. 24.
Interested in soil quality and nutrient management? Illinois Farm Bureau, in conjunction with the German American Chamber of Commerce, will host a roundtable discussion from 1 to 4:30 p.m. Feb. 19 at the IAA Building in Bloomington. The farmer-only event will feature speakers from Germany and the U.S. discussing soil quality and nutrient man-
agement as well as the latest trade talks between the nations. Farmers who attend can also apply for the 2015 Issues Tour to Germany August 1623. Preregistration is required for the Feb. 19 roundtable. To register, email your name, county and cellphone number to tnelsen@ilfb.org prior to Feb. 18.
IFB to host soil roundtable
DOE ends FutureGen funding
Coal companies involved with the FutureGen clean coal project planned in Meredosia said last week they must shut down after the Department of Energy (DOE) suspended most of the funding. DOE confirmed it would not provide $1 billion in stimulus funding previously committed to the project that would store carbon dioxide from the coal underground. The FutureGen Alliance said it had no way to compensate for the lost funding. In a prepared joint statement, Gov. Bruce Rauner and U.S. Sen. Mark Kirk, R-Ill., said: “We are thoroughly disappointed in the administration’s decision to hastily end the bipartisan FutureGen project ... We will not give up on this state-of-the-art technology and bringing new jobs to the state.”
Wheat growers hope to avoid another scab outbreak
Page 7 • Monday, February 9, 2015 • FarmWeek
Illinois Wheat Forum Feb. 17 BY DANIEL GRANT FarmWeek
Many wheat growers, particularly in southern Illinois, won’t soon forget the rollercoaster ride of 2014. The joy of record yields at many locations (the statewide yield tied a record of 67 bushels per acre) fizzled when many farmers delivered their loads only to find high vomitoxin levels and low test weights, which led to severe dockage. “It (vomitoxin/Fusarium head scab) was a big issue last year,� Carl Bradley, University of Illinois Extension plant pathologist, told FarmWeek. “A lot of the really high levels (of scab) were in the southern third of the state where most of the wheat is at.� Counties with the highest level of vomitoxin in 2014, according to the Illinois Department of Agriculture (IDOA), include a line from Effingham, Marion, Wayne, White, Hamilton and Jackson counties all the way down to
Union and Alexander counties on the southern tip of the state. Vomitoxin also was an issue last year as far west as Calhoun County to as far north as Carroll and Stephenson counties on the northern Illinois border. Check out IDOA’s state map of last year’s vomitoxin outbreak at {FarmWeekNow. com}. The outbreak spread in part by significant rainfall during the wheat crop’s flowering stage last spring. While farmers obviously can’t do anything about the weather, some management strategies help reduce the chances of such a massive outbreak. Bradley will discuss research from fungicide trials and offer tips to farmers next week (Feb. 17) at the Illinois Wheat Forum in Mount Vernon. Information about that event can be found online at {illinoiswheat.org) or by calling 309-557-3662. Dave Hooker, assistant professor at the University of Guelph in Canada, will provide tips for fungicide applications (including ground ver-
CBMP launches cover crop videos
The Illinois Council on Best Management Practice (CBMP) recently launched a series of four videos to help answer common questions about cover crops. The videos feature Mike Plumer, a CBMP cover crop specialist, and focus on such topics as how to get started, pros and cons of the practice, when to start planning and cover crop choices for Illinois farmers. Visit Youtube at {bit.ly/1Ev8GnZ}.
sus aerial and nozzle selection) to maximize the effectiveness of applications. “Through research, we’re able to show a few (fungicides) are very similar, while some aren’t as good as others,� said Bradley, who noted the highest level of scab control from any fungicide tops out around 50 percent. “The issue is, if the only scab management practice you do is apply a fungicide, and we have a year like 2014, it’s probably not enough,� Bradley said.
and use fungicides can achieve up to 90 percent control of scab. The wheat crop this season got off to a rough start due to late planting and an unseasonably cold November that cut short the time to establish quality stands. Less than half the crop (49 percent) was rated good to excellent as of the end of January. The rest of the wheat crop statewide was rated 38 percent fair and 13 percent poor to very poor.
Young Leaders collecting canned goods at GALC
The Illinois Farm Bureau Young Leader Committee again will collect nonperishable food and donations during the Governmental Affairs and Commodities Leadership Conference (GALC) Feb. 25-26 in the Crowne Plaza, Springfield. Dubbed Fill a Ford, the 2014 activity raised collected cash and donations, including 90 dozen eggs that were distributed in 21 central Illinois counties served by the Central Illinois Food Bank. The Young Leaders’ goal is to fill the bed of a Ford truck with food. The donations will be applied toward their
Harvest for All campaign totals. In addition to several general sessions, GALC participants may choose from among 20 breakout sessions. During a statewide legislative reception, participants will discuss issues with state legislators. Registration costs $50 for Wednesday only, $30 for Thursday only or $70 for both days. Hotel reservations for a special conference rate are due Tuesday (Feb. 10). Conference registrations are due Feb. 20.For more information or to register, contact your county Farm Bureau.
Sheep and goat workshop planned in Effingham
If you’re raising sheep and/or goats, consider attending an 8:30 a.m. March 14 workshop at the University of Illinois Extension Office in Effingham. The workshop will focus on wool, fiber and meat production; pasture management for optimal grazing; flock health;
Start Planning Now Date February 10 February 10 February 10 February 11 February 11 )HEUXDU\ February 12 February 13 February 13 February 16 February 16 February 17 February 17 February 18
Variety selection remains one of the most important factors for scab control as many varieties are more susceptible than others. Crop rotation also plays a key role. Corn serves as a host for the same fungus that causes scab in wheat. So, wheat planted after corn likely will be surrounded by the inoculum. Research shows that wheat growers who choose resistant varieties, plant their wheat crop after soybeans
Location
City
Franklin County Farm Bureau Benton Harris-Pruett Building Harrisburg Southern Illinois Livestock Barn Goreville I-Hotel Champaign Asmark Center Bloomington .HOOHU &RQYHQWLRQ &HQWHU (IÂżQJKDP Rend Lake Community College Mt. Ve ernon John A. Logan Community College Carterville Gateway Convention Center Collinsville St. Lawrence Catholic Church Greenville Shawnee Community College Ullin Massac County Farm Bureau Metropolis Brickhouse Restaurant Anna Knights of Columbus Hall Carlyle
and marketing strategies for sheep and goat products. Speakers will include Cathe Capel of 7 Sisters Farm; Doug Gucker, U of I Extension; Dr. Nanci Richards of Eastern Prairie Veterinary Services; and Jenna Pohl with Midwest Lambs, LLC. The workshop will conclude
at 2 p.m. Registration is required by March 11. A $20per-person registration fee includes all program materials and lunch. To register, visit {bit.ly/ 1EE56aU}, call the Effingham Extension Office at 217-3477773 or email jlwshbrn@illi nois.edu.
Attend a meeting at your convenience ...
Time
Contact
7:30 AM 12:00 PM 6:00 PM 8:00 AM 1:00 PM $0 1:00 PM 8:00 AM 1:00 PM 9:00 AM 6:00 PM 7:30 AM 12:00 PM 12:00 PM
Gay Bowlin, 618-435-3616 Morgan Booth, 618-252-6992 Carol Bennett, 618-658-2871 Preregister at farmbilltoolbox.farmdoc.illinois.edu/seminar-series.html Preregister at farmbilltoolbox.farmdoc.illinois.edu/seminar-series.html 3UHUHJLVWHU DW IDUPELOOWRROER[ IDUPGRF LOOLQRLV HGX VHPLQDU VHULHV KWPO Preregister at farmbilltoolbox.farmdoc.illinois.edu/seminar-series.html Preregister at farmbilltoolbox.farmdoc.illinois.edu/seminar-series.html Preregister at farmbilltoolbox.farmdoc.illinois.edu/seminar-series.html Dick Horner COUNTRY Financial 618-664-1341 Tammie Obermark Pulaski-Alexander Farm Bureau 618-745-9429 Tammie Obermark Massac County Farm Bureau 618-524-5811 Brad Dodd COUNTR OUNTRY Financial 618-697-3553 Lunch Keith Wilken COUNTRY Financial 618-526-4541
NC380D4
Additional meetings take place through March. Follow FarmWeek FarmW Week kÂŽ, FarmW FarmWeekNow.com, eekNow.com, your favorite RFD Radio Networ Network kÂŽ radio station, or ilfb.org/farmbill to learn more.
Specialty growers face March 15 deadline for whole farm revenue protection decision
FarmWeek • Page 10 • Monday, February 9, 2015
Illinois specialty growers may consider a new choice to protect their livestock and crops — whole far m revenue protection (WFRP). However, they must make a decision by March 15, according to Desiree King, a risk management specialist with the USDA Risk Management Agency (RMA). WFRP provides a risk management safety net for all commodities on the far m under one insurance policy. This insurance plan is tailored for any far m with up to $8.5 million in insured revenue, including far ms with specialty or organic commodities — both crops and livestock — or those marketing to local, regional, far m-identity preser ved, specialty or direct markets.
Some far mers may be familiar with adjusted gross revenue-lite (AGR-lite) that previously was offered in Illinois, according to King. RMA improved AGRlite and used far mers’ sug gestions to for m the new WFRP, she said. King recommended farmers visit {rma.usda. gov/policies/wfrp.html}, which offers a wide variety of information. She specifically recommended farmers review the chart comparing WFRP to AGR (adjusted gross revenue). That appears under the “other information� icon in the middle of the page. “The insurance is based off of past revenue, so some people will have to provide tax revenue information,� King said. King encouraged interested specialty growers to speak with their crop insurance agents about WFRP.
Lincoln Land Community College’s (LLCC) Green Center will host a central Illinois composting symposium Feb. 24 from 9 a.m. to 3 p.m. in the college’s Trutter Center, Springfield. The early registration deadline for FarmWeek readers is Friday (Feb. 13). Sessions will be offered for three tracks: beginners, advanced and vermicomposting. Vermicomposting participants may join a buildyour-own-bin workshop for an additional $15.
The symposium includes an exhibit hall. The symposium offers a forum for sharing information and stimulating the market for compost. The early registration cost is $30 and increases to $35 after the deadline. To register, visit {www.llcc.edu/green-cen ter}. For information, call 217-786-4993 or email marnie.record@llcc.edu.
BY KAY SHIPMAN FarmWeek
LLCC hosting composting symposium Feb. 24
You have options.
MILK EXPERIMENT
Susan Kleiboeker, left, Clinton County agriculture literacy coordinator, drops a pinch of chocolate flavoring into milk as a science-teaching tool, while Richland County Farm Bureau Manager Caitlin Chrzanowski looks on. Last week, ag literacy coordinators from across the state learned about an updated dairy booklet along with other new materials available through Illinois Agriculture in the Classroom during a training session at the Illinois Farm Bureau building, Bloomington. (Photo by Kay Shipman)
IAITC seeks to plant ideas with teachers
BY KAY SHIPMAN FarmWeek
And switching switching to to FS has never never been easier. easier. ,I \RX¡UH ORRNLQJ WR Ă&#x20AC;QG D SURSDQH VXSSOLHU ZKR RIIHUV SURIHVVLRQDO NQRZOHGJHDEOH DQG GHSHQGDEOH VHUYLFH \RXU EHVW RSWLRQ LV )6 <RX¡OO ORYH WKH FRQYHQLHQW VHUYLFH WKH WKRURXJK OHDN DQG VDIHW\ FKHFNV DQG WKH FRQYHQLHQFH RI Ă H[LEOH SD\PHQW RSWLRQV 0DNH \RXU KRXVH IHHO OLNH KRPH ZLWK WKH FRPIRUW RI )6 3URSDQH &RQWDFW \RXU ORFDO )6 0HPEHU &RPSDQ\ WRGD\
FEELS LIKE HOME
Š2014 GROWMARK, Inc. A14243
Teachers thinking spring may apply to Illinois Agriculture in the Classroom (IAITC) and put a different spin on lessons about plants, gardening and related topics. â&#x20AC;&#x153;This is a huge, huge opportunity,â&#x20AC;? Kevin Daugherty, IAITC education director, told county agriculture literacy coordinators attending a workshop last week. With financial support from the IAA Foundation and the Archers Daniel Midland Co., IAITC plans to distribute about 220 sets of container gardens, roughly the size of a portable cooler; six childrenâ&#x20AC;&#x2122;s books related to plants and seeds; lesson plans dubbed â&#x20AC;&#x153;Once upon a Garden;â&#x20AC;? and $20 to defray the cost of potting soil and seeds. Applications must be submitted by March 16. A school may receive only one gardening set, which may be shared by several classes and/or clubs, Daugherty explained. He noted groups, such as those affiliated with University of Illinois Extension Master Gardeners, may be interested in working with students. Selected applicants should expect to receive their garden sets in April and submit a final report on its use to IAITC by Oct. 30.
Illinois Agriculture in the Classroom plans to distribute 220 container gardens, each with a set of six ag-related books and a set of lesson plans. (Photo by Kay Shipman)
For information or to download an application, visit {agintheclassroom.org} and click on â&#x20AC;&#x153;county support.â&#x20AC;? Under county support, scroll down to February 2015 coordinator meeting and click on â&#x20AC;&#x153;container garden grant.â&#x20AC;? Recently, ADM donated $42,000 to the IAA Foundation for IAITC projects, the work of county ag literacy coordinators, and a container garden lesson series and special garden grants for teachers. The donation was made through ADM Cares, a social investment program that directs funds to initiatives and organizations that drive meaningful social, economic and environmental progress worldwide.
Farmers, grocers value relationship Trust and respect play key roles in a relationship between farmer-growers and the buyers who rely on them. In the case of a multigenerational southern Illinois farm family and a fast-growing grocery chain, that relationship includes family values. Wayne and Michelle Sirles of Rendleman Orchards, Alto Pass, recently received a surprise honor from Roundy’s Supermarket Inc., parent company of Mariano’s, for their farm family’s longevity. The family has operated its farm since 1873. “For a grocery store like that to recognize us means a lot to us,” Michelle Sirles said. “It opened our eyes that sometimes we take our (family) history for granted.” Steve Jarzombek, Roundy’s vice president of produce merchandising, told FarmWeek his company values its farmers as well as its customers. “Roundy’s has solid relationships with our farmers and vendors and awarding them for their hard work all year
long is the right thing to do,” Jarzombek said. “They are our local heroes and honoring them is just one of the steps.” Rendleman Orchards began supplying Mariano’s with apples and peaches last year. Illinois Farm Bureau and Cynthia Haskins, IFB manager of business development and compliance, helped them connect at a Meet the Buyer event. Rendleman Orchards delivered peaches to a corporate warehouse in Oconomowoc, Wis., to supply any of Roundy’s Illinois Mariano’s stores and delivered apples directly to two Mariano’s stores in Oak Lawn and Ravenswood. “Since working hand in hand with Illinois Farm Bureau, we were able to establish this new successful relationship (with Rendleman Orchards), and we’re looking to add more farms this coming season,” Jarzombek said. As long-time Farm Bureau members, connections made through IFB Meet the Buyer events proved to be beneficial and Haskins served as a farmer liaison, according to Sirles. “Take advantage of any
Farmers will have an opportunity for one-on-one meetings with local and regional food buyers from 10 a.m. to 3:30 p.m. March 3 in St. Louis University’s Il Monastero Building, St. Louis. The registration deadline for limited seating is Feb. 25. For farmers traveling from southern Illinois, a limited number of seats will be available on a motor coach that will leave Carbondale at 6 a.m. and return at 7 p.m. Seats are available on a first-come, firstserved basis. The event provides farmers an opportunity to meet buyers and learn what is needed to do business with grocery and foodservice industries in the area, said Cynthia Haskins, Illinois Farm Bureau manager of business development and compliance. Representatives of a foodservice distributor, grocery retailer and school foodservice management company will share information about their industries and how farmers may work with them.
Extension specialists with the University of Illinois and University of Missouri will present information about Good Agriculture Practices (GAP) and Market Ready, a program that teaches best commercial practices. The $15 registration fee includes all materials, lunch and refreshments. Participating farmers are encouraged to bring business cards and any handout materials about their farms to share with buyers. Event partners include IFB, Illinois Specialty Growers Association, Illinois Department of Agriculture, U of I Extension, Missouri Farm Bureau, Missouri Department of Agriculture, U of M Extension and several area county Farm Bureaus. The preferred registration method is online by visiting {ilfb.org}. Click on the “News & Events” tab at the top left, then on the “Conferences & Events” icon, and then on the March 3 Meet the Buyers event. Those unable to register online should contact their county Farm Bureau for assistance.
BY KAY SHIPMAN FarmWeek
Meet the Buyers event planned in St. Louis
Burger sales boom despite higher beef prices
Restaurants are reaping rewards for upping their burger offerings as beef prices climb. Nine billion servings of burgers were ordered at U.S. restaurants in 2014, a 3 percent increase from 2013. Shipments of bulk ground beef rose by 2 percent across all foodservice outlets. Restaurants added burgers to menus to offset rising beef prices and found consumers are willing to pay extra for an inexpensive burger than entrees that feature cuts of beef. Beef entree servings dropped 8 percent in casual dining restaurants.
meeting to meet buyers,” she encouraged her fellow farmers. (See accompanying story.) Sirles recommended growers work with potential buyers this time of year before the farmers’ busy season starts. “We found some of the larger stores have a (approval) process to go through, and we had to provide them a lot of information and documentation — electronic paperwork,” she explained. “For the grocery and the grower, this is the best time to have arrangements in place and ready when you start producing.” In addition to Rendleman Orchards, Roundy’s also honored Rick Didier of Didier Farms, Lincolnshire. “Every year, our goal is to keep expanding our local relations and program. That is why we are active in local summits and conferences held across Wisconsin (Roundy’s corporate base) and Illinois, and personally visit as many farms as possible,” Jarzombek said. “Roundy’s is very passionate about locally grown produce and connecting our customers with their local food and farms.”
Page 11 • Monday, February 9, 2015 • FarmWeek
Above, Wayne Sirles, right, of Rendleman Orchard, chats with Joe Perotto, the apple category manager for Roundy’s. Below, left to right, Steve Jarzombek, vice president of produce at Roundy’s Supermarkets Inc., and Steve Markovich, who buys most of Mariano’s vegetables, honors Michelle and Wayne Sirles, Rendleman Orchards, based in Alto Pass, for the company’s farmer supplier with the most generations in family farming. The Sirles mark the sixth generation to operate the farm since 1873. (Photos courtesy of Roundy’s)
There’s a difference between field experts and experts in the field. At FS, we’re experts in the field. Our crop specialists are driven to maximize every acre and bring the latest agronomic technologies and innovations to your farm. Whether recommending the appropriate opriate hybrid or varietyy,, nutrient management m for optimum growth, or advice on disease and pest management, our crop specialists are always focused on pointing your operations forward. So, the only thing you’ll be asking FS is, what’’s next?
www w.fssystem.com
TM
©2013 GROWMARK, Inc. A14141
Pork producers exhale; PEDV mostly MIA so far this winter
FarmWeek • Page 12 • Monday, February 9, 2015
BY DANIEL GRANT FarmWeek
Many pork producers are likely greatly relieved, and maybe even a little surprised, about a dramatic turnaround in herd health so far this winter. One year after porcine epidemic diarrhea virus (PEDV) swept through the national herd, killed millions of piglets and caused hog prices to surge, the virus so far this winter has gone missing in action on many farms. “It (PEDV) basically regressed in the industry and has become a nonissue,” Jim Lowe, veterinarian Jim Lowe at the University of Illinois College of Veterinary Medicine, said last week at the Illinois Pork Expo. The virus was introduced into the U.S. swine herd in the spring of 2013 and progressed into a large-scale out-
break from Sept. 2013 to July 2014. “It’s nowhere to be seen since then,” Lowe said. “There’s an occasional break (but nothing on a large scale).” PEDV caused the death of an estimated 7 million piglets nationwide as the national litter rate last winter quarter (Dec. 2013 through Feb. 2014) at the height of the outbreak dipped to 9.53 compared to the trend rate of 10.3. So, what happened since then to cause the number of PEDV cases to plummet, even in the winter when viruses tend to flourish? “As a veterinarian, I’d like to say we took care of the problem,” Lowe said. “But biology took care of it.” The virus, linked to a similar strain in China, was introduced into the U.S. less than two years ago. At that time, 100 percent of the U.S. herd was susceptible to the agent. Each infection subsequently led to about 10 new infections as the virus raced
through the U.S. herd. The rapid exposure to PEDV, though, allowed the herd to quickly build immunity to it. “The herd that was infected became resistant,” Lowe said. “So, we have a population that’s back to being resistant and susceptible (rather than infected).” Immunity eventually wears out, though. So another outbreak of PEDV remains a possibility, according to the veterinarian. There are at least two additional strains of PEDV identified in the U.S. The industry responded by tightening biosecurity and introducing vaccines. PEDV fortunately doesn’t qualify as a trade-blocking disease. So, many producers fed swine that survived the outbreak to heavier levels to maximize returns from record hog prices. The outbreak, however, exposed the need for increased funding for diagnostic research and USDA funding to handle animal disease outbreaks, Lowe noted. In Illinois, a new online
“Let’s talk” isn’t just an invitation.
tool, the Illinois Swine Health Network {swine-health.org}, was launched at Pork Expo to help farmers evaluate disease risks in their area. The Swine Health Network
exists as a collaborative effort by the Illinois Pork Producers Association, American Association of Swine Veterinarians and the Integrated Food Animal Medicine System.
ISB at-large directors sought
Interested in taking one of two at-large director positions on the Illinois Soybean Board (ISB)? Submit a letter of interest by Friday (Feb. 13). Soybean farmers residing in Illinois and of legal voting age must notify ISB of their desire to become a candidate by sending a letter via certified mail with return receipt requested to the Illinois Soybean Association, 1605 Commerce Parkway, Bloomington, Ill. 61704. Letters can also be sent via email to terrella@ilsoy.org. An application form will be mailed to all interested individuals upon receipt of a letter of interest. Completed applications must be returned to the same address above or emailed by Feb. 20. Individuals will be nominated by a majority of the ISB Board of Directors sitting in a quorum at a board meeting to be held after the February application deadline. Two of the nominated individuals will be elected by a majority of soybean farmers in attendance at the ISB meeting July 31 in Champaign. No write-in provision exists for at-large director elections. ISB manages and invests Illinois soybean checkoff funds in research, promotion and education programs that enhance soybean production and use, and support national and international market development.
Anhydrous safety training offered
The Illinois Fertilizer and Chemical Association (IFCA) and the Illinois Department of Agriculture are hosting seven anhydrous ammonia safety schools. The early registration deadline is Feb. 16. Dates and locations are: Feb. 24, Rend Lake Resort, Whittington; Feb. 26, Unique Suites, Charleston; Feb. 27, Asmark Agricenter, Bloomington; March 3, Mendota Civic Center, Mendota; March 4, Best Western, Galesburg; March 5, Holiday Inn, Quincy; and
March 6, Crowne Plaza, Springfield. Registration starts at 8:30 a.m., and the class ends at noon with lunch included. The early registration cost is $65 before Feb. 16. Participants may achieve a certificate as a competent attendant, which is required for anyone who works at an ammonia storage facility with anhydrous ammonia. Download the registration form by visiting {ifca.com}. Call IFCA at 309-827-2774 with questions.
Farm labor resources topic of workshop
Farmers and other professionals will gather from 10 a.m. to 5 p.m. Feb. 14 at Prairie Fruits Farm and Creamery in Champaign to discuss and share resources on farm labor management for specialty crop growers. Sponsored by The Land Connection, the workshop will focus on establishing management plans for employees, retention, delegation, wages and labor law. Attendees will participate in presentations, facilitated discussion, and group work that will provide resources and allow growers to share their struggles and successes. Attendees will pay $50, which includes lunch and materials. Registration closes Wednesday (Feb. 11). Register at {theland connection.org} or call 217-840-2128.
Organic grain seminar scheduled
®
It’s how we do business. Our experts at FS Agri-Finance believe that having a meaningful conversation with our customers is the best way to help them reach their financial goals. We will show you how you can use financing as a risk management tool to help spread your costs and manage your cash flow. Our experts know the business of agriculture, are focused on what’s ahead and will ensure you’re ready for what’s next.
www.fssystem.com
TM
©2013 GROWMARK, Inc. A14149
Four farmers will share their experiences growing and marketing organic grain from 8 a.m. to 4 p.m. March 10 at the Champaign County Farm Bureau building. The Land Connection-sponsored organic grain seminar will feature experiences shared by Wyatt Muse, Clarkson Grain merchandiser, and farmers Gary McDonald of Springfield, Jack Erisman of Pana and Harold Wilken of Danforth. They will discuss technical and pest problems in the field, storing organic grain apart from conventionally grown grain and why they converted their fields. Seminar sponsor AgriEnergy Resources will be on hand to discuss organic input alternatives and fertilizers. Cost will be $100 before Feb. 15 and includes lunch. Scholarships are available. For more information, visit {thelandconnection.org}.
B
UREAU — Farm Bureau will host a 2015 informational trip meeting at 1 p.m. Tuesday at the Farm Bureau office. Trips will include Ireland and Scotland July 20-31 and Country Christmas Nov. 29-Dec. 3. • Farm Bureau will host an on-the-road seminar at 6:30 p.m. Feb. 19 at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will speak. Call the Farm Bureau office at 875-6468 for reservations. ASS-MORGAN — Farm Bureau will cohost an irrigator meeting at 11 a.m. Feb. 17 at Beardstown City Hall. Steve Wilson, Illinois State Water Survey, will speak. Reservations are appreciated, but not required. Call the Farm Bureau office at 245-6833 for more information. • Farm Bureau will host a market and weather outlook meeting at 6 p.m. Feb. 23 at the University of Illinois Extension in Jacksonville. Dale Durchholz, AgriVisor senior market analyst, and a meteorologist from the National Weather Service will speak. Reservations are appreciated, but not required. OOK — Farm Bureau will host a kick-off for the Food and Farm Forum series from 9 a.m. to noon Feb. 28 at the Farm Bureau building. This series, designed to encourage aspiring entrepreneurial farmers, will begin in March. Call the Farm Bureau office at 708-354-3276 to register. For more information visit {cookcfb.org/buylocal/programs}. ORD-IROQUOIS — Farm Bureau will host Viewpoint breakfast meetings at 7:30 a.m. Feb. 17 at the Farm Bureau building and Feb. 24 at Happy Days Diner in Roberts. Reservations are not required. Call the Farm Bureau office at 265-4712 for more information. ULTON — Farm Bureau will host an Agriculture in the Classroom (AITC) dinner from 4 to 7 p.m. Friday at the Farm Bureau office. Cost is $8 for adults, $4 for children 5 to 10 years and free for children under 5 years. All proceeds will benefit the Fulton County Ag Literacy Coalition. Call the Farm Bureau office at 5473011 for tickets or more information. • Farm Bureau’s annual meeting dinner will be at 5:45 p.m. Monday at Kemper Banquet Hall in Canton. Wayne Ridle, AITC bike ride participant, will speak. Cost is $10. Call the Farm Bureau office at 547-3011 to obtain tickets by Monday.
C
C F F
H
ANCOCK — Farm Bureau will co-host a workshop entitled Focus on the Farmer — Taking Care of You at 8 a.m. Feb. 17 at Sullivan & Son Auction and Events Center. Mike Adams, “AgriTalk” host, will be the keynote speaker. Call the Farm Bureau office at 3573141 for reservations and more information by Friday. • Farm Bureau will host a dinner insurance meeting for young farmers at 6 p.m. Thursday at Lake Hill Winery. Hancock County COUNTRY Financial agents will discuss life, disability and long-term care insurance. Call the Farm Bureau office at 357-3141 for reservations by Wednesday. EE — Young Leaders invite members age 18 to 35 to play wallyball at 4 p.m. Feb. 21 at Plum Hollow in Dixon and go to dinner afterwards. Call the Farm Bureau office at 857-3531 for reservations by Feb. 18. • Young Leaders will host a dinner and legislative update at 6 p.m. Feb. 24 at Prime Quarter in Princeton for members 18 to 35 years. Chuck Spencer, GROWMARK, will speak. Call the Farm Bureau office at 8573531 for reservations by Feb. 17. CDONOUGH — Farm Bureau’s annual meeting will be at 6 p.m. Feb. 16 at the Farm Bureau office. ERCER — Farm Bureau will co-host a farm bill luncheon session at 11:30 a.m. Friday at Aledo VFW. Farm Service Agency (FSA) staff will present. Call the Farm Bureau office at 8212991 by Wednesday for reservations. • Up to nine Foundation scholarships will be awarded. Applications are available at {mercercfb.org} or at the Farm Bureau office. Applicants must be admitted to a postsecondary school during 201516, be a member of the Mercer County Farm Bureau or a dependent of a member by Jan. 1, 2015. Application deadline is March 27. ONROE — Farm Bureau will host a Viewpoint breakfast meeting at 8 a.m. Feb. 23 at the Tavern in Maeystown. Call the Farm Bureau office at 939-6197 for reservations by Feb. 19. ONTGOMERY — Prime Timers will host a luncheon and meeting at noon Feb. 18 at the Farm Bureau office for members 55 and older. County Melodies will entertain. Cost is $9. Call the Farm Bureau office at 5326171 by Friday for reservations. • Farm Bureau will host meetings with attorneys from Byron Carlson Petri & Kalb, LLC, and the Silver Lake Group on the Dakota Pipeline
L
M
easement, Syngenta corn litigation and Ameren vegetative expansion easements from 4:30 to 7:30 p.m. Tuesday at the Farm Bureau office. Call the Farm Bureau office at 532-6171 for more information. EORIA — Farm Bureau will host a luncheon tiling/cover crops program at 10:30 a.m. Feb. 20 at the Farm Bureau office. Matt Thompson, ThompsonMcCoy Earth Moving, and Pete Fandel, Illinois Central College, will speak. Cost is free for members and $10 for nonmembers. Call the Farm Bureau office at 686-7070 for reservations by Feb. 17. AYNE — Applications are available at {waynecfb.com} for the 2015 Community Impact Grant program. Application deadline is March 31. Call the Farm Bureau office at 842-3342 for more information. • The foundation will offer six, $500 scholarships to Wayne County youth majoring in an ag-related field of study. Applications are available at {waynecfb.com}. Application deadline is Feb. 28.
P
W
W
Page 13 • Monday, February 9, 2015 • FarmWeek
HITE — The Young Leader Committee will offer a $500 scholarship to a student majoring in an agrelated field of study in the fall 2015 semester. Visit {whitecfb. com} for an application. Application deadline is Feb. 28. HITESIDE — Farm Bureau will co-sponsor a dinner estate planning seminar at 5:30 p.m. Wednesday at Candlelight in Rock Falls. Rick Morgan, COUNTRY Financial, and Dan Hawkins, Ward, Murray, Pace and Johnson, will speak. Call the Farm Bureau office at 7722165 for reservations by Monday. • Young Leaders will meet at 6 p.m. Thursday at Happy Joe’s Pizza in Morrison. Members 18 to 35 are invited to attend. Rachel Eissens, FSA, will discuss federal farm programs. Call the Farm Bureau office at 772-2165 or email wcfb@frontiernet.net for reservations by Wednesday. • The Foundation will offer up to three, $2,000 scholarships. Applicants must be a Farm Bureau member or
W
dependent of a member majoring in an ag-related field of study. The Foundation will offer a $2,000 scholarship for current college students. Applications are available at {whitesidecfb.org/scholar ships}. Application deadline is April 3. ILLIAMSON — Farm Bureau will cohost a farm bill session at 6 p.m. Tuesday at the Southern Illinois Equine Sale Barn. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 9932609 for reservations. INNEBAGOBOONE — Farm Bureau will host a Tri-State Travel Tours informational meeting at 6 p.m. Tuesday at the Farm Bureau office. Trips will include the best of Ireland and Scotland July 20-31 and American Country Christmas Nov. 29-Dec. 3.
W W
“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity that is open to all members, contact your county Farm Bureau manager.
M
M M
Source: USB Market View Database
So do chickens, turkeys, cows and fish. In fact, animal ag is your number one customer - consuming 97 percent of your soybean meal. That’s bringing home the bacon.
Learn more at www.ILSOY.org
FarmWeek • Page 14 • Monday, February 9, 2015
Plan crop protection to maximize yields this season
With less than two months from the first day of spring, there appears to be a lot of decisions that still need to be made. A lot of folks are still trying to predict the number of BY JEFF BUNTING
corn acres that will be planted this spring. Many of you, like me, watch the markets, and try and predict which crop will return the greatest investment. During the last seven years, the crop protection business
Milk price continues to drop The Class III price for milk adjusted to 3.5 percent butterfat for the month of January was announced at $16.18 per hundredweight. This represents a decline of $1.64 from the previous month’s announcement. As dairymen gradually respond to this recent run of recordsetting levels, prices have now softened. This is primarily due to the weakening international demand that is backing off primarily due to the higher prices. Producers are hoping demand interest picks up in the new year and will help prices stabilize.
how effective it was and lived through a number of years where a single application was all you needed if the field was cleanly tilled; some areas needed two applications. Over the years, Illinois soybean fields were planted into a no-till environment, in wider rows and at lower populations. These cultural and mechanical practices ultimately limited the effectiveness of glyphosate in a single application and introduced weed shifts that we deal with today. We now have a plethora of herbicides to control weeds. In fact, we might have too many because of the complexities to understand what is in that herbicide and at what rate. Your local FS Crop Specialist can help you understand the various offerings and provide you the agronomic recommendation to make that investment go further to clean fields and maximizing yields.
has experienced resurgence because of the all-too-pesky pests and the ability to effectively control those pests. In addition, the spread of glyphosate resistant weeds continues to increase across Illinois. As we get ready for the 2015 growing Jeff Bunting season, there are a number of crop protection challenges we will face with weed control being toward the top of that list. The first step in your crop protection plan is to determine what will be planted on your acres this season. That will dictate the management strategy to execute in your weed management program. As we closed the books last year, many were surprised to learn that herbicide costs continue to rise in an effort to manage or mitigate weeds. There used to be a substantial difference in herbicide costs
per acre between soybeans and corn, but over time this gap continues to narrow. As we continue to see commodity prices fall there appears to be an indication to reduced input costs or to eliminate strategies that many of you have implemented during the last three to four years. Glyphosate continues to dominate the herbicide use category, and with the global demand of that product, we are starting to see the impact of the agricultural business and the global demand. The main question that comes up is, “Do I need to spend that much to control my weeds?” In reality, herbicide prices have been relatively flat during the last year. It might seem easy to just spray glyphosate to reduce input costs, but I would challenge you that that practice has been tried and is the reason we are seeing the many issues today. When Roundup Ready soybeans were launched in the late ‘90s, weed control was easy, simple and effective. We saw
Jeff Bunting, Ph.D., serves as GROWMARK’s crop protection division manager. His email address is jbunting@growmark.com.
In 2014, the majority of growers surveyed planted the required refuge size on their farms and planted it within the required distance for all of their Bt cornfields. That’s the finding of the Compliance Assurance Program (CAP) designed to improve compliance with Insect Resistance Management (IRM) requirements. CAP includes onfarm refuge assessments, an online survey, and IRM educa-
tion and awareness. The Agricultural Biotechnology Stewardship Technical Committee (ABSTC), a consortium of Bt corn registrants, submits an annual CAP report to the U.S. Environmental Protection Agency describing industrycoordinated compliance assurance efforts for Bt traits. The survey further indicated the percentage of growers not planting any refuge acres continues to be low. In addition, survey results showed a strong adoption of integrated refuge
products, which include Bt and refuge seed interspersed in a single bag or container. “We are pleased to see that the number of growers planting integrated refuge products on their entire farming operation has more than tripled this year and the percent of those who planted exclusively integrated product increased from 18 percent in 2013 to 47 percent in 2014. Also, an additional 27 percent are planting at least one integrated product,” said Mark Kimm, ABSTC IRM subcommittee co-chair.
Illinois Farm Bureau members will be eligible for a $300 manufacturer’s incentive, in addition to current event sale pricing and finance offers, for full-sized Polaris snowmobiles until March 31. Members are already eligible for significant savings on four other types of Polaris vehicles – Ranger utility and sport vehicles, Sportsman all-terrain vehicles, GEM electric vehicles and Brutus utility vehicles. Snow checks, youth sleds and other youth vehicles are not eligible for this offer. To take advantage of incentives available for the purchase of qualifying Polaris vehicles, members should visit {fbveri fy.com/Polaris}. To qualify, a minimum of 30 days membership is required. Members can confirm eligibility and print a required certificate by entering their membership number and zip code.
globally, an increase of more than 14.8 million acres from 2013. According to a report by the International Service for the Acquisition of Agri-Biotech Applications (ISAAA), a total of 28 countries grew biotech crops during the year. The 20 developing and eight industrial countries where biotech crops are produced represent more than 60 percent of the world’s population. The report also highlighted key benefits of biotechnology from 1996 to 2013, including increased production value of $133 billion, decreased pesticide use of about 1.1 billion pounds and reduced carbon dioxide emissions in 2013 alone equivalent to removing 12.4 million cars from the road for one year.
Bt corn refuge compliance increases nationwide
M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$60.00 $45.82 40 lbs. (cash) $69.00-$79.00 $72.74 Receipts
This Week 74,727 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 71,413
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $61.90 $66.06 -$4.16 $45.81 $48.88 -$3.08
USDA five-state area slaughter cattle price (Thursday’s price)
Steers Heifers
This week $160.00 $160.00
Prev. week $159.48 $159.01
Change $0.82 $0.99
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week $210.65 $211.69 -$1.04
Lamb prices Negotiated, wooled and shorn, 138-169 lbs. for 139-171.20 $/cwt. (wtd. ave. 146.98); wooled and shorn 172-180 lbs. for 133-143 $/cwt. (wtd. ave. 136.02)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/29/2014 62.4 14.5 26.0 1/22/2014 56.8 11.7 34.9 Last year 43.8 12.1 22.2 Season total 1376.6 555.7 588.3 Previous season total 1158.7 811.2 575.2 USDA projected total 1760 925 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Polaris offers new incentive Biotech crop acreage sets record to IFB members In 2014, a record 448 million acres of biotech crops were grown
Tuesday: • FarmWeek: “The Early Word” • Walter McMahon, University of Illinois: higher education funding • Harvey Freese, Freese-Notis Weather Wednesday: • Paul Neiffer, CliftonLarsonAllen: tax filing • Tamara Nelsen, Illinois Farm Bureau senior director of commodities: Farmers Round-
table series on soil health • Kristin Kramer, COUNTRY Financial: changes in inventory and equipment Thursday: • Mike Doherty, IFB senior economist and policy analyst: U.S. Grains Council meeting • Illinois Soybean Association representative Friday: • Lauren Lurkins, IFB director of natural and environmental resources: Nutrient Loss Reduction Strategy • Melissa Rhode, IFB membership and program director: membership benefits
Corn Strategy
USDA Outlook Forum ahead
On Feb. 19-20, USDA will hold its annual outlook forum regarding a host of issues important to American agriculture. But to most of the trade and farm communities, their forecasts for plantings of the major crops in 2015 and the associated supply/demand forecasts are most important. Nevertheless, it’s important to remember that none of these estimates are survey based. The range of estimates is driven by sophisticated computer models along with “human assessment” of what those models suggest. At best, they are just USDA analysts’ ideas of what the fundamental picture might look like for this coming year. The trade has talked more about the yield component of the coming USDA forecasts, but we believe the acreage numbers are as important, if not more important. They establish an insight to the first physical component for this year’s crop — area planted. Yield is determined later in the season. The popular wisdom has been that producers might plant 2 million less acres to corn and
4 million more to soybeans. The 2015 USDA baseline acreage forecasts show corn plantings will be down 1.6 million for corn and up 2.3 million for soybeans relative to last year. All wheat acres are expected to drop 1.3 million. The question that dominates the situation is: What will producers do with the Conservation Reserve Program (CRP) acres they have put into production the last few years? In major corn areas, total plantings have increased 10.6 million since 2006 — 8.2 million of it coming from CRP acres. Plantings of all crops in major corn areas dropped 2.9 million acres in 2014. Will even worse economics and sharply lower crop insurance guarantees suggest to USDA analysts that even fewer total acres will be planted this year? The yields may be less in question, but shouldn’t be much higher than the weatheradjusted trends they started using last year. Last year, they projected 165.3 bushels for corn and 45.2 for soybeans. That leads us to expect them to project yields near 167 for corn and 45.7 for soybeans. Given last year’s 171 and 47.8 bushel yields for corn and soybeans with near ideal weather on a national scale, we’d doubt they use anything higher than trend.
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
ü2014 crop: Good marketing opportunities may still be limited in the short term. We suggest only making needed sales. If you need to sell, we’d recommend a basis contract to secure cash, leaving pricing open into spring. Continue to hold 2013 crop for expected long-term improvement. ü2015 crop: Even with this past week’s rebound, we see little reason to be pricing new crop at these levels. You may want to consider buying outof-the-money, new-crop call options over the next two to three weeks that you can make cash sales against later in the spring/summer. vFundamentals: Not much is changing for corn specifically. Amid some concern about exports, sales and shipments are keeping pace with last year. The longer that holds, the more likely USDA will have to raise its forecast. New-crop expectations will start to take a larger role with the first USDA new-crop forecast coming at its Feb. 19-20 Outlook Forum.
Page 15 • Monday, Februrary 9, 2015 • FarmWeek Cents per bu.
Soybean Strategy
ü2014 crop: The looming South American crop is leaving the soybean market more defensive than for other grains. But large crops have already been factored into the market. Better selling opportunities should still come this spring. ü2015 crop: Prices have dropped to a level at which downside risk has gotten small. We have no interest in pricing 2015 crop. The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: Brazil is starting to load out new-crop soybeans. Harvest in Mato Grosso is 17 percent complete. Harvest is thought to be about as far along in Parana, one of the southern states. Production estimates are slipping a little, but it will still be a big crop. Some private analysts have raised their Argentine forecast to 57 million metric tons. Still, U.S. export sales and shipments remain relatively robust. The
trade is expecting another upward adjustment from USDA.
Wheat Strategy
ü2014 crop: Old-crop sales should be 75 percent complete. Wait for better opportunities for new sales recommendations. ü2015 crop: New-crop wheat should be 25 percent priced. vFundamentals: Wheat buyers are beginning to find value for the money at these prices. Exports were strong last week and signs point to better sales potential ahead. Egypt may be looking for U.S. wheat in order to take
advantage of a hefty credit line the top importer has open with our government. A recently softer dollar has the potential to help U.S. export competitiveness, but day-to-day dollar weakness is also a catalyst for day-to-day rallies in the wheat market, which can sometimes offset the terms of trade advantage. A shift in focus toward the new crop should begin to lend support to prices. Condition ratings for the soft red crop in Illinois are currently very good, but there continues to be deterioration of the hard red crop in Kansas and Oklahoma.
FarmWeek â&#x20AC;˘ Page 16 â&#x20AC;˘ Monday, February 9, 2015
Searching for a fountain of youth in our food
U.S., Cuba will benefit from expanded trade A historic move to lift trade restrictions with Cuba is looking like good news for U.S. agriculture, even though fully realizing the benefits will take time and a strong commitment to complete the necessary steps to opening up this market. Despite the trade embargo that began in October 1960, the U.S. ranks fifth as an exporter to Cuba behind Venezuela, China, Spain and Brazil. U.S. agricultural and food exports have, to some degree, been exempted from the embargo since 2001. Easing ROBERT restrictions could make the U.S. GIBLIN more competitive for a broader range of agricultural products, though, and pave the way for increased sales of farm inputs and equipment. The 2001 agriculture exemption still includes a number of trade-financing restrictions that have cost the U.S. market share to countries with fewer restrictions. U.S. agriculture and food exports peaked at about $710 million in 2008, but have since slipped to about $350 million. Improving our export outlook with Cuba will require changes to several U.S. laws. The Treasury and Commerce departments will need to step in to ease restrictions and open up business with the Cuban government and its banks. Current rules require farmers and ranchers who want to export to Cuba to get cash up front from the Cuban government before shipping. All money must be handled by third-party banks with high transaction costs, and U.S. laws prohibit credit for Cubaâ&#x20AC;&#x2122;s state-run import agencies.
Photo elicits fond memories
Expanded trade also requires a good market for the products coming in. Cuba has been facing a severe economic downturn, and Cuban consumers donâ&#x20AC;&#x2122;t have much buying power. The average state salary is 471 Cuban pesos per month, about $20, but the lowest-paid workers earn about $8.65 per month. The Cuban economy relies heavily on economic aid, tourism, a few exports, and remittances sent home by Cubans living in other countries. Under the proposal rolled out in December, the U.S. limit of $2,000 per year on remittance payments to family members in Cuba will be raised to $8,000, thus opening up the market further. In recent years, the Cuban government has taken steps to address its food availability issue by increasing agricultural production, which will, in turn, require overcoming many challenges, including poor land and destructive weather. Cuban farmers need open access to modern agricultural technology if theyâ&#x20AC;&#x2122;re going to see any kind of success in addressing these challenges. The U.S. is poised to become a significant supplier of much-needed commodities and food to 11 million consumers â&#x20AC;&#x201D; and agricultural inputs, technology and equipment to farmers â&#x20AC;&#x201D; only 90 miles from the Florida coast. With its productivity, quality and proximity, the U.S. is at a competitive advantage over other suppliers as long as the Cuban government continues to open channels to its consumers, and U.S. rule makers follow up with steps to remove self-imposed barriers. Robert Giblin writes, speaks and consults about agricultural and food industry issues, policies and trends.
Letter to the editor
Editor: The joy I experienced on opening this weekâ&#x20AC;&#x2122;s FarmWeek (Feb. 2) to page 12 is indescribable. There was a picture taken in the fall of 2009 by Ken Kashian of my husband, Richard D. Gulick, talking to our grandson, Evan Richard Leeper, as our son-inlaw, Tom Leeper, combined beans. I have always treasured the photo, but I especially do today! Dick passed away Feb. 5, 2014, and he has been gone just one year this week. How appropriate that his picture
Spanish explorer Juan Ponce de Leon is credited with discovering and naming Florida about 500 years ago while on a quest to find the fabled Fountain of Youth. Unfortunately, a nativeâ&#x20AC;&#x2122;s arrow found him first. Although he still gets credit for Florida, scholars have decided that Ponce de Leon was primarily interested in finding wealth. While we laugh at the notion of a magical fountain that cures sickness and restores youth to all who drink of it, the fact remains that many people are still searching for just such a thing. This time, the quest is centered on finding supernatural foods. No one is saying that the aging process can be reversed with food, but health and nutrition authors like Dr. Joel Fuhrman, who wrote the best-seller, â&#x20AC;&#x153;Eat to Live,â&#x20AC;? claim a person can live longer and disease free by adding superfoods to the diet. Superfoods contain a good supply of antioxidants and phytochemicals, also known as phytonutrients. The American Institute for Cancer Research believes these naturally occurring substances help prevent cancer and ward off heart disease, age-related eye damage and other chronic diseases. Typically, they improve the bodyâ&#x20AC;&#x2122;s immune system and slow the effects of aging. According to Fuhrman, foods with super nutrition include collard, mustard and turnip STEWART greens, kale and watercress. Some others on his TRUELSEN top 25 list include cabbage, spinach, mushrooms, onions, tomatoes, pomegranates, berries, nuts and seeds. Most superfoods fall into the category of specialty crops, an important segment of the farm economy amounting to $65 billion in annual sales, including cut flowers and nursery crops. The search for a fountain of youth in foods has elevated a few specialty crops to celebrity status â&#x20AC;&#x201D; the pomegranate being a case in point. First cultivated several millennia ago in the Middle East, it was largely ignored in this country until it became identified as a rich source of vitamins and antioxidants. Now, there are thousands of acres of pomegranates in the San Joaquin Valley of California. The market for superfoods is promising and farmers are responding. For example, they have dramatically increased the production and availability of raspberries, blueberries and blackberries. They also now have protection for their crops with a noninsured crop disaster assistance program in the 2014 farm bill. The widespread growth of farmersâ&#x20AC;&#x2122; markets also is very positive. But there are factors that could have a negative impact on future production. Many of these crops are labor-intensive. There is an urgent need for a flexible agricultural visa program and help for experienced workers to gain legal status. Housing and other developments have slowed but could continue to crowd out specialty farms in key growing areas. Lastly, most of these crops are irrigated, and agriculture is under pressure from competing interests to give up its water. These are issues consumers should keep in mind as they get excited about superfoods. It is equally important to support the farmers who grow them.  Stewart Truelsen, a food and agriculture freelance writer, regularly contributes to the Focus on Agriculture series.
Letter policy
Governmental Affairs Leadership Conference Feb. 25th-26th, 2015 &URZQH 3OD]D +RWHO 6SULQJÂżHOG ,/ Please contact your County Farm Bureau for more information and to register.
#GALC15
should appear exactly one year later! Evan is now farming with
his dad! JANICE N. GULICK Decatur
Would you like to share information or an opinion with Far mWeek readers? Consider submitting a Letter to the Editor. Please limit your letter to 300 words. Include your name, address and phone number. Your phone number will not be published; it will simply help us verify letter authorship. Only one letter per writer will be accepted in a 60day period. All letters will be subject to editing. Far mWeek will not publish political endorsements. You can mail letters to: FarmWeek Letters, 1701 Towanda Ave., Bloomington, Ill. 61701, or email CAnderson@ilfb.org.