Farmweek jan 20 2014 by Illinois Farm Bureau

Awards, policymaking and experts sharing the latest agricultural information marked the 95th AFBF annual convention...........................2-7

Opponents and proponents of EPA’s proposed Renewable Fuel Standard intensified efforts to comment by Jan. 28.........................8

IFB state legislative priorities will focus on Illinois’ budget issues, including continued ag program funding..................................12

A service of

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

IFB helps create AFBF farm data collection policy Monday, January 20, 2014

Farmer delegates from 50 states and Puerto Rico attending last week’s American Farm Bureau Federation (AFBF) annual convention added Illinois-sponsored policy language regarding farm data collection. The adopted language serves as official policy that will be advanced by the national organization. “Proprietary data collected from farming and agricultural operations is valuable, should remain the property of the farmer, and warrants protection,” said IFB President Rich Guebert Jr. following final AFBF policy action in San Antonio, Texas. Delegates adopted a new national policy aimed at protecting data gathered on farms. The policy supports: • Utilizing safeguards to ensure proprietary data is stored at an entity not subject to a Freedom of Information Act request. • Requiring companies collecting, storing and analyzing

Two sections Volume 42, No. 3

BY MIKE ORSO

Illinois Farm Bureau President Rich Guebert Jr. addresses fellow state Farm Bureau delegates during American Farm Bureau Federation policy debate last week in San Antonio, Texas. (Photo by Ken Kashian)

proprietary data to provide full disclosure of their intended use of data. • Forming standardized

protocols regarding privacy and ter ms of conditions to ensure a standard definition of all components

within the contract. • Compensating farmers whose proprietary data is shared with third parties that offer products, services or analysis benefitting from that data. “Farmers need to be part of the discussion and protocol where industry and farmers go with big data, whether it’s collection, the use of it, how it’s used,” said Guebert. In other action, AFBF farmer delegates reaffirmed policy on a federal farm bill that includes crop insurance as a risk management tool. Components of the old law have already been extended a year, but Guebert and other Illinois farmers want final action on new, multi-year legislation that has been stalled in Congress. On the farm labor front, delegates reasserted support for agricultural labor reforms that ensure farmers have access to workers when they are needed. Delegates also voted to support flexibility that would allow the employment of workers by more

than one farmer. Delegates adopted new policy supporting the use of unmanned aircraft systems for commercial agricultural, forestry and other natural

resource purposes. They supported the requirement for drone users to gain the consent of the landowners if operating below navigable airspace. However, delegates opposed federal agencies’ use of drones for regulatory enforcement, litigation or natural resource inventory surveys.

Power cost management increasingly important BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

Power costs on farms in recent years accelerated as new

equipment expenditures and the price of fuel/oil and machinery depreciation posted significant gains. Overall, power costs in Illinois since 2006 nearly doubled from an average of $68 per acre in 2007 to $125 per acre in 2012. Most of the increase in recent years was due to higher machinery expenditures. Capital expenditures in 2011 and 2012 averaged more than $100 per acre compared to $45 per acre in the 2000s, according to Gary Schnitkey, University of Illinois Extension farm management specialist. “We had good (farm) incomes (from 2010 to 2012) so farmers bought a lot of machinery,” Schnitkey said last week at the U of I Corn and

Mike Orso serves as IFB director of News & Communications.

‘There’s going to be a (financial) squeeze. We’ve become more concerned about controlling all costs.’ — Gary Schnitkey Soybean Classic in East Peoria. Farm income, however, is expected to level off and likely decline this year. Managing costs, therefore, could be more important to farm margins than it was during the recent high income years. “We’ve moving into a period where we’re looking at lower (crop) prices and we’re still looking at high nonland costs,” Schnitkey said.

FarmWeek on the web: FarmWeekNow.com

“There’s going to be a (financial) squeeze. We’ve become more concerned about controlling all costs.” From 2006 to 2012, costs increased 34 percent for fertilizer, 19 percent for seed, 9 percent for machinery depreciation and 4 percent for crop insurance. The U of I projected crop prices this year could average around $4 per bushel for corn

and $11 for beans. But corn prices possibly could slip as low as the $3.50 range if farmers produce above-average yields this year, Schnitkey noted. Those types of prices aren’t as supportive of as many new purchases of big ticket items, such as farm equipment. Farmers who are locked into See Power, page 9

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

Quick Takes

AFBF

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AFBF’S AG BOOK OF YEAR — A children’s book about bees, beekeepers and pollination was designated Book of the Year by the American Farm Bureau Foundation for Agriculture last week. Retired Virginia teacher Laurie Krebs wrote “The Beeman” and autographed copies last week in San Antonio, Texas. Krebs’ husband, Bill, is a beekeeper, and she based her story on his hobby. “I wrote ‘The Beeman’ so that honeybees could be introduced to classrooms that my husband couldn’t visit,” she said. The award recognizes books that accurately cover agricultural topics. OUR FOOD LINK INTRODUCED — A new yearround program to help Farm Bureaus reach consumers was launched last week during the American Farm Bureau Federation annual convention in San Antonio, Texas. The Our Food Link offers Farm Bureau leaders a variety of ideas and was spearheaded by the AFB Women’s Leadership Committee. Visit {fb.org/assets/files/programs/ourfoodlink}. The information includes interactive booths at community events, topics for classroom visits and program ideas.

ILLINOIS CROP QUALITY PRAISED — No question, Illinois farmers produce great corn and soybeans, according to the Russian Federation’s agriculture counselor. Valery Khromchenkov gave Illinois Farm Bureau Director Darryl Brinkmann and his wife, Jean, his candid assessment of Illinois crops over breakfast in San Antonio, Texas. Khromchenkov said he has repeatedly advised his countrymen that Illinois crops are the best. The genial Russian attaché received several invitations to visit and gather firsthand information about Illinois farms. EVERYTHING BIGGER IN TEXAS, EVEN BADGES — Spotting attendees of last week’s American Farm Bureau Federation annual convention was easy — even from a distance. Everyone sported postcard sized name badges. Some were made even longer with ribbon attachments for delegates, media, etc. The Texas-sized moniker included the convention agenda — legible without reading glasses — on the flip side. Texas-sized badge, regular badge

(ISSN0197-6680) Vol. 42 No. 3 January 20, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. 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. © 2014 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 Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

IFB Young Leader May runner-up in National Young Farmers & Ranchers Discussion Meet BY KAY SHIPMAN FarmWeek

Christian County Farm Bureau Young Leader Caleb May was named a runner-up in the National Young Leaders and Ranchers Discussion Meet last week during the American Farm Bureau Federation annual meeting in San Antonio, Texas. May will receive a Case IH Farmall 55A, courtesy of Case IH and $3,000 in cash and Stihl merchandise, courtesy of Stihl. Michigan Farm Bureau’s Nathan Prill won the competition. The other two runners-up were Shelby Watson of Maryland and Chris Pollack of Wisconsin. May shared his views on ways to improve the agriculture economy. “Bottom line, agriculture is a bright spot in our economy,” May told a crowd that included many Illinois Farm Bureau members. “Let’s keep looking for ways to improve the agricultural economy and build strong rural communities.” The final round topic asked competitors what farmers can do to stimulate more economic growth. May, a marketing adviser for Cargill, pointed out tech-

Stallman re-elected AFBF president

Delegates at the 95th American Farm Bureau Federation annual convention re-elected Bob Stallman as president for an eighth two-year term. The Texas cattle and rice farmer will serve with re-elected AFBF Vice President Barry Bushue. The berry and nursery plant producer from Boring, Ore., also serves as Oregon Farm Bureau president. Delegates elected three new state Farm Bureau presidents to the AFBF board of directors: Steve Nelson of Nebraska (Midwest Region), Rick Suydam of New Jersey (Northeast Region) and Tom Buchanan of Oklahoma (Southern Region). Midwest Region board members re-elected included Steve Baccus of Kansas, Blake Hurst of Missouri and Scott VanderWal of South Dakota. Jake Carter, a Georgia farmer, was elected the new chairman of the AFBF Young Farmers & Ranchers Committee.

nology, such as precision farming, is critical to help farmers improve yields and livestock production efficiencies. Risk management also is important, May noted. Partner-

ing with industry professionals to manage risk further helps farmers economically, he said. May raised the value of education and advocacy among nonfarmers. “We produce a product and have to sell a product. Advocacy is important to help consumers understand,” he said. May highlighted the efforts of Illinois Farm Families and how the agricultural coalition educates young urban and suburban mothers about farming and food production. Legislative issues, such as funding to support modern locks and dams, also influence the agricultural economy, May said. He described IFB’s Adopt-a-Legislator program and its successful work to enhance Chicagoarea lawmakers’ understanding of farming and important rural issues. “It’s the best advocacy we have,” May said. To reach the final round, May advanced through two preliminary rounds and a Sweet 16 round.

IFB brings home hardware Caleb May

Illinois Farm Bureau members captured a number of awards at last week’s American Farm Bureau Federation annual convention. IFB won an Award for Excellence for outstanding achievement in six program areas, including education and outreach, leadership development, member services, membership initiatives, policy development and implementation, and public relations and communications. Illinois was one of 25 states earning an Apex Award. The honor goes to state Farm Bureaus that have increased total investment in the AFBF Foundation for Agriculture by 10 percent or more during the previous year. In addition, IFB members received a Scholar Award. Only six states earned the honor given to state Farm Bureaus with the highest total donations within their membership groups.

NELSON HONORED FOR SERVICE

Philip Nelson, left, former Illinois Farm Bureau president, receives a certificate of service from American Farm Bureau Federation (AFBF) President Bob Stallman at the AFBF annual convention. Nelson of Seneca served as IFB’s 14th president, completing a 10year term in December. (Photo courtesy of AFBF)

AFBF

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Illinois Farm Bureau fares well with RFS

Mark Gebhards, executive director of IFB governmental affairs Illinois Farm Bureau President and commodities division, noted delegates had discussed three Rich Guebert Jr. said IFB “fared key issues. In addition to RFS, well” with its Renewable Fuel the other issues were immigraStandard (RFS) proposal last tion policy and crop insurance. week when American Farm “Crop insurance is our No. Bureau Federation (AFBF) annu1 priority,” Gebhards said. al convention delegates voted to “There were difkeep support for ferences (of biodiesel and FarmWeekNow.com opinion among cellulosic Visit FarmWeekNow.com to view geographic ethanol in videos and interviews from the regions), but in AFBF policy. recent AFBF Annual Convention. the long run it “It’s going came out OK real quickly,” for us today.” Guebert said of morning delegate action. “We’ve plowed a lot Southern state delegates of ground and we’re where we failed to reinstate policy supneed to be.” porting continuation of federal IFB had proposed continuing government financial support at support for excise tax credits for a percentage less than 2011 levbiodiesel and cellulosic ethanol els for the (crop insurance) proalong with federal incentives for gram with the private sector as gas stations to install blender the primary insurance deliverer. pumps until market conditions “Now is not the time to ask warrant phasing them out. for more subsidy,” IFB Director “Biodiesel, cellulosic ethanol Dale Hadden of Jacksonville and blender pumps ... are still in said in opposition of reinstating their infancy,” IFB Director the deleted policy. Chris Hausman of Pesotum told As for immigration policy, fellow delegates. “Until the Gebhards assessed the delegates’ industry matures, we feel it action as strengthening language needs help ... then we can look and making it very clear what at phasing them out.” AFBF supports and opposes Following morning action, regarding immigration policy. BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau President Rich Guebert Jr., far left, joins fellow IFB delegates, left to right, IFB Vice President David Erickson, former IFB President Philip Nelson and IFB Director Darryl Brinkmann on the delegate floor during the American Farm Bureau Federation annual convention last week in San Antonio, Texas. (Photo by Kay Shipman).

Stallman: Farm Bureau plate overflowing with priorities Vilsack seeks broader

If the American Farm Bureau Federation (AFBF) can accomplish all of its priorities in 2014, Illinois farmers should fare well. But the plate of policy priorities is full and not much has moved. Bob Stallman, AFBF President, opened the 95th annual convention last week in San Antonio, Texas, saying, “Congress is falling down on the job of addressing the nation’s needs,” including the needs of the nation’s farmers. The Texas rice and cattle producer told the opening general session that three big items need final action soon: • A new multi-year farm bill. Stallman said Congress must complete the farm bill this month because U.S. farmers need risk management certainty to prosper. • A water resources development bill. He said locks and dams built decades ago fail to meet today’s needs. Stallman said he’s most optimistic about this priority becoming reality. • Long-term solutions to agricultural labor shortages. Stallman said Farm Bureau members are losing millions of dollars in income from crops that they cannot harvest because of a shortage of farm workers. He said the Senate’s immigration and agricultural BY MIKE ORSO

‘The progress we’ve made speaks to our grassroots strength, our strategic focus and our credibility...’ — Bob Stallman AFBF President

labor reform bill contains principles outlined by the Agricultural Workforce Coalition and AFBF will work to get at least part of it enacted in the House version of the bill. Despite current congressional gridlock, few organizations have seen their key priorities passed by even one house of Congress, much less two, Stallman noted. “The progress we’ve made speaks to our grassroots strength, our strategic focus and our credibility as the nation’s Voice of Agriculture,” he said. On the regulatory front, securing farmers’ and ranchers’ privacy is a growing concern, as are attempts to challenge farmers’ ability to use modern technology to increase crop yields and food quality. “Instead of focusing on how to feed more and more people with existing land and water, and instead of allowing us to use food staples to address nutritional deficiencies

in less-developed countries, some are intent on standing in the way,” Stallman said of state legislation and ballot initiatives that would require labels for foods made with biotech ingredients or even ban the use of biotechnology outright. With the Environmental Protection Agency late last year putting the wheels in motion to propose extending federal regulatory authority to nearly every body of water in the country — and ultimately regulating so-called “waters” that aren’t even wet most of the time — farmers and ranchers are bracing for a fight. Farm Bureau has also been working through the courts to stop EPA’s attempts to broaden its regulatory reach. Disappointed with a loss in its case against the EPA’s Chesapeake Bay pollution limit rules, AFBF, along with Pennsylvania Farm Bureau, has appealed the ruling.

farm bill support

U.S. Agriculture Secretary Tom Vilsack offered evidence “why every American should be concerned we don’t have a farm bill ... and encourage Congress to pass it,” in remarks during the American Farm Bureau Federation annual convention last week in San Antonio, Texas. “We need a wider understanding of what the farm bill means outside of agriculture,” the ag secretary told thousands of farmers from across the nation. Vilsack pointed out farm bill programs impact half of the U.S. land mass and involve land surrounding the water source of 180 million Americans in the western United States. “Sixteen million Americans are employed based on what farmers and ranches do,” he said. “I remain optimistic this (farm bill passage) will be done soon,” the secretary said, adding it has been “painful to watch and not be able to be in a position to help” farmers and ranchers with disaster assistance. Vilsack assured farmers he and his agency are preparing for a farm bill: “As soon as the ink is dry, we have to be in a position to implement this bill.” USDA teams will be in place to implement programs, he added. The secretary shared USDA

also is working on other issues. USDA is addressing agriculture’s concerns about the Environmental Protection Agency (EPA) regulatory overreach on “waters of the U.S.,” Vilsack said. USDA is interacting with EPA about that issue and “the impact it may have on farmers,” he said. “Rest assured USDA is engaged with EPA on waters of the U.S.” Vilsack urged farmers to be “dedicated to educating nonfarmers exactly what farming is and does,” while being open to diverse types of farms and farming. Farmers should “celebrate all forms of agriculture because there is a common bond and a respect for the capacity to grow,” he said. “We should work so everyone can choose what’s best for their farm and not be judgmental.” That big picture view should include providing consumers with “information they need without sending the wrong signal or ... conveying a mistaken message about the safety of a product,” Vilsack said. Technology, such as a QR code on a product label, would allow a consumer to seek and receive additional information, he suggested. — Kay Shipman

AFBF

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Improved livestock markets predicted for 2014 Improved weather conditions and moderation in feed prices could show continued improvement for livestock markets in 2014, according to Dr. Derrell Peel, Ph.D., Extension livestock marketing specialist and professor of agribusiness at Oklahoma State University. “We’ve been in a very dynamic situation in general in the livestock sector for several years. And that’s true for all of the livestock sectors when you think about the feed market impacts, the import market impacts,” Peel told American Farm Bureau Federation annual convention attendees last week. Peel expressed extreme optimism for the cattle sector, predicting herd expansion for the next several years. “The beef sector (looks) even more optimistic relative to the other livestock sectors. We find ourselves at 50- to 60-year lows in cattle numbers. And so we’ve got record prices happening,” said Peel. “It doesn’t mean we are going to continue up at that pace here for the next few weeks, but it sets the stage for general conditions that really did evolve in the last half of 2013. This is the market

BY RITA FRAZER

Matt Bechdol, an Indiana farmer and founder of GeoSilos, discusses farm data collection and protection at the American Farm Bureau Federation annual convention. GeoSilos analyzes farm and other data for its customers. (Photo by Mike Orso)

Farmers are engaged in era of ‘prescriptive agriculture’

With agricultural data being collected by satellites, yield monitors and aerial maps, farmers have moved past precision agriculture into the “prescriptive agriculture” era. Matt Bechdol, founder of GeoSilos and an Indiana farmer, told American Farm Bureau Federation annual convention attendees the days of handshake deals are probably gone. He called farm data “a perishable commodity.” “We want to do analytics to say what happened, what’s going to happen, and in scenarios that happen, what are my options,” said Bechdol, whose consulting firm helps agricultural companies maximize the use of data and conducts analyses for businesses, policymakers and economists. Can your equipment, crop protection or seed companies be trusted with all of the data they collect about your farm? “I think we should explore clarity in legal status. If I have a data agreement with my machinery company, one BY MIKE ORSO

with my seed company and one with my chemical company, they’re not consistent in terms,” Bechdol noted. “What is an affiliate? How will they share the data? What happens if they acquire someone or they get acquired?” Bechdol warned farmers to read the terms of service agreements when signing up for free accounts or downloading operating systems on tablets and cellphones. With rapidly changing and newly available technology, Bechdol called upon Farm Bureau to bring stability, clarity and guidance to farmers who are unsure how to capture and use “big data.” “With all the new technologies, there’s somewhat of a fear factor. So, people tend to have an overreaction,” said Bechdol. “I think it’s to Farm Bureau’s credit that they are trying to facilitate a very sober conversation to say here’s what it can mean, but let’s not jump off that cliff to say we need to control it and regulate it. Let’s have a conversation.”

we are in, and it’s kind of what we can expect on average as we go forward.” With cattle numbers at record lows since the 1950s, Peel said farmers and ranchers need to focus on expanding herds and responding to current markets. “The incentives are there, but how profitable producers will be is a function of managing costs and production,” Peel noted. Export markets will continue to be a strong outlet for farmers and ranchers in 2014, although Peel estimated a slight decrease in beef exports due to higher prices and lower production. American farmers are adapting to current conditions and are competitive in foreign markets, Peel said. “In the pork and poultry sectors, growth in exports has been a very important component the last several years. It is a question of how much of that product moves off shore,” Peel noted. “That’s true for all of the meats, and it is very important in the case of poultry for 2014. Out of a 3 to 3.5 percent increase in production, we’ll probably export about 1 percent of that increase.” Rita Frazer serves as RFD Radio Network ® editor.

Corn, soybean farmers: brace for lower prices Prepare for several years of lower corn and soybean prices. That’s the advice offered by Matthew Roberts, an Ohio State University associate professor of agricultural, environmental and development economics. Speaking at last week’s American Farm Bureau Federation annual convention, Roberts urged producers to start taking management steps now to adjust to lower prices during the next six years. “Primary among those steps is building working capital, building cash. Defer purchases as you can. Start trying to build up and retain that cash because ultimately we don’t know exactly what’s going to happen in these next few

years. Cash will provide a cushion against that uncertainty,” he advised. The economist further noted the lowest cost producers will succeed. The biggest differences in production costs lie not in seed and fertilizer, but in land charges, Roberts added. “I think that there is a cash rent bubble. A lot of rents, especially in multi-year contracts, are simply not sustainable in an era of $4 corn, much less an era of potentially mid-$3 corn. That will have to change,” Roberts stated. “Watch your land charges. Prepare your landlords for the lower rents to come.” Strong demand from China and the ethanol industry

altered corn and soybean production globally during agriculture’s recent boom period. A decent U.S. crop year in 2013 and curbed growth from ethanol may mean some acreage will revert back to pasture and forage crops. “If we get a good number of corn plantings, we’re going to see a lot of weakness in those prices. We have good exports. We have good demand, but we have a wall of corn out there. And when it hits this market, the market is going to feel it,” Roberts said. “I would like to see growers start treating their stored corn much more like an elevator does. I’d like to see them hedge that. Treat it like an elevator.”— Rita Frazer

grown globally by 6 to 8 percent annually, Enright said. Yet, the U.S. biotech industry spent more than $20 million successfully opposing a Washington state mandatory biotech food ingredient labeling ballot initiative in 2013 and more than $40 million to do the same in California a year earlier, she noted. In all, the BIO official said 32 states faced some sort of proposed anti-biotech initiatives and laws last year, and opposing them the same way in the future is “unsustainable and untenable.” BIO recently launched an initiative that attempts to candidly answer consumer ques-

tions about biotechnology. Enright told AFBF attendees that “big hurdles must be met with big efforts.” The organization’s GMO Answers effort, launched last July, will attempt to accomplish four goals by creating an additional dialogue with consumers about biotech: • Promote innovation and continued investment in U.S. agricultural productivity. • Bolster U.S. agricultural competitiveness to ensure access to technology. • Empower audiences to make up their own minds about biotech with facts not fear. • Help ensure food security

for the future. BIO utilizes 50 independent, third-party experts to answer many of the questions submitted through {GMOAnswers.com}. “Many of the questions we first received were rough, vitriol ... things like ‘Why are you poisoning people? Why are you forcing farmers to buy it,’” she said. “Research shows that if we have a dialogue, people’s minds are changed.” Enright says since the website launched last summer, BIO has received more than 600 questions about biotech and has answered more than 400, with responses for most of the remaining “in progress.” — Mike Orso

Biotech adoption grows despite lag in new seed approvals

The Biotechnology Industry Organization’s (BIO) top agriculture official says 2014 will be the first year farmers in Argentina, Brazil and Canada have access to new seed with traits enhanced through biotechnology that are not yet approved for planting in the United States. Cathleen Enright, Ph.D. and BIO executive vice president for food and agricultural policy, told farmers attending the American Farm Bureau Federation’s annual convention that cultivation approval timelines for new biotech seed in the U.S., once the most rapid in the world, have now fallen behind other countries.

‘Argentina, Brazil and Canada have taken the emotion and politics out of the approval process.’ — Cathleen Enright BIO executive vice president for food and agricultural policy

“Argentina, Brazil and Canada have taken the emotion and politics out of the approval process,” said Enright. Adoption of biotech has

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International ag attaches see chances to collaborate BY KAY SHIPMAN FarmWeek

International knowledge, policy and technology were served along with breakfast when Illinois and county Farm Bureau leaders and international agricultural attaches met

‘If they learn technology, the fa r m e r s w i l l b e able to improve production and quality.’ — Safwat El Haddad Egypt’s agriculture office

during the American Farm Bureau Federation annual convention last week in San Antonio, Texas. “I admire the way you

determine policy,” Thomas Schmidt, Germany’s agriculture counselor, told Farm Bureau leaders. Representatives of 14 nations and the European Union attending the AFBF meeting sat amongst the farmers. The breakfast was sponsored by COUNTRY Financial. Safwat El Haddad, head of Egypt’s agriculture office, sought information about how U.S. farm cooperatives work from Illinois Farm Bureau Director David Serven of St. Augustine. El Haddad said he and Serven discussed a possible exchange between Illinois and Egyptian cooperatives. Egyptian farm cooperatives, some started in 1956, receive orders from the government, El Haddad explained. “The agriculture policies are old policies,” he added. El Haddad envisioned Egyptian cooperatives bringing new technology to their farmer

Farmers need to include goals, philosophies in estate plans

Farmers must start with their end goals when planning to pass their farms to the next generation, a Certified Public Accountant advised Farm Bureau members attending the American Farm Bureau Federation annual convention in San Antonio, Texas. “Evaluate what you want to do with your goals and philosophies,” said Christopher “Chris” Hesse of CliftonLarsonAllen LLP, Minneapolis, Minn. “It’s never too soon to do it. “At least have the conversation with the children and evaluate where you’re at –- even if you decide not to do anything yet,” Hesse added. Tax laws and implications should then be applied to help meet those goals and philosophies, he explained. He recommended farmers consider many factors when determining how to divide their assets. These include any children with special needs, long-term education goals or mitigating factors. When dividing their assets, farmers are only limited by their imaginations, according to Hesse. Hesse stressed farmers should keep in mind $14,000 is the annual threshold for the gift tax exclusion. Annual gifts of that amount or less do not have tax implications. — Kay Shipman

Illinois Farm Bureau Director David Serven, left, discusses agricultural cooperatives with Safwat El Haddad, the head of the Egyptian agricultural office, during the American Farm Bureau Federation annual convention in San Antonio, Texas. Haddad was among international agricultural attaches from 15 countries who joined Illinois Farm Bureau leaders to exchange ideas. (Photo by Kay Shipman)

members and helping them market products. “If they learn technology, the farmers will be able to improve production and quality,” he said. New Zealand First Agriculture Secretary Janine Collier suggested New Zealand and American farmers could learn from each other. Collier said she recently learned some U.S. farmers have become more interested in pasture-raised livestock. “We know a lot about that,” she said with a chuckle. “We could share the knowledge.” In New Zealand, the

majority of cattle and sheep graze year-round. While in Texas, she visited a dairy that imported and daily uses an automated gate from New Zealand. Farmers from the two nations could share technology and knowledge, she added. Collier noted American and New Zealand farmers can work together rather than compete to help feed Asia’s growing population. “Asia’s population will triple. How will we feed those people?” she asked. During Schmidt’s presenta-

Illinois Farm Families highlighted at AFBF

Illinois Farm Bureau knows that moms represent today’s core influencers when it comes to building greater trust among American consumers. Chris Magnuson, IFB executive director of operations, news and communications, highlighted the Illinois’ Farm Families program during a panel discussion at last week’s American Farm Bureau Federation annual convention. “We’re using farmers for

outreach through our website, videos and more, and we’re engaged with mommy bloggers,” Magnuson said. Illinois Farm Bureau has also done extensive consumer research and plans to conduct a follow-up study to determine consumer attitudes now, after several years of consumer outreach. “We hope to measure a shift in attitudes,” explained Magnuson.

SOUTH AMERICA IS TAKING OUR PLACE. Scary thought, isn’t it? The good news is we can do something about it every time we choose a soybean variety to put into the ground. If we start getting closer to 35 percent protein and 19 percent oil, our beans would be a lot more attractive to domestic livestock producers and foreign markets— and we’d help stop the loss of export share to Brazil and other foreign competitors. It’s time to talk with your seed dealer or Certified Crop Adviser about protein and oil. Then visit VIPsoybeans.org to validate your seed selection and ilsoy.org for more information.

tion to the assembled guests, he briefly explained the role of agricultural attaches. “We represent our countries and inform on your country,” he said. “We inform what is going on here; your ideas and desires. Will bioethanol policy mandates go on? Cellulosics? What quantities?” Schmidt joked the Federal Register and government reports are exciting reading material for him and his fellow ag attaches. “The bounty of information is so great, it is hard for us to cope with it.”

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Illinois county Farm Bureaus share winning ideas at AFBF BY KAY SHIPMAN FarmWeek

Across Illinois, county Farm Bureau leaders and staff work hard to educate nonfarmers about agriculture, and those efforts were acknowledged during the American Farm Bureau Federation (AFBF) annual convention last week in San Antonio, Texas. Out of 24 county Farm Bureau programs nationwide showcased in the trade show, three from Illinois received the Activities of Excellence Award for innovative programs. All three Illinois winners â&#x20AC;&#x201D; Cook County Farm Bureau, Marshall-Putnam Farm Bureau and Randolph County Farm Bureau â&#x20AC;&#x201D; won in the Sharing Agriculture in Education category. Cook County Farm Bureau provided summer educational fun for 40 elementary students at a four-day Passport to the Farm. Students were surfaced through sign-up sheets at elementary schools near the Chicago High School for Agricultural Sciences.

Each of the 40 campers filled a â&#x20AC;&#x153;passportâ&#x20AC;? each day with information they learned at the camp, explained Ruth Zeldenrust, Cook County Farm Bureau Board member. After completing the day camp, each student received an agriculture book for their school library. Marshall-Putnam Farm Bureau also focused on educating children with its ImAGination Acres project during the county fair. The goal was to educate children about agriculture with free activities and ag-related play areas, explained Bob Fecht, county Farm Bureau president. More than 1,200 children and adults visited the popular area during the five-day fair. â&#x20AC;&#x153;The kids didnâ&#x20AC;&#x2122;t want to go home when the parents did,â&#x20AC;? Fecht said with a laugh. â&#x20AC;&#x153;The parents appreciated the children having a place to play that was free,â&#x20AC;? his wife, Deanna, added. Randolph County Farm Bureau focused on educating legislators and legislative staff

Marshall-Putnam Farm Bureau President Bob Fecht and his wife, Deanna, explain their county Farm Bureauâ&#x20AC;&#x2122;s winning idea, ImAGination Acres, to participants at the American Farm Bureau Federation annual convention last week in San Antonio, Texas. (Photo by Kay Shipman)

with its Agmazing 500 Congressional Tour and Reception. Fifteen congressional staff from four states traveled 187

miles to six locations over three days. They learned firsthand about grain handling and fertilizer facilities, beverage manufacturing, farming and Missis-

sippi River transportation issues by touring sites. Participants also formed bipartisan teams and competed each day in Amazing Racestyle games.

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Cook County Farm Bureau board member Jim Bloomstrand provides information about the county Farm Bureauâ&#x20AC;&#x2122;s winning idea, Passport to the Farm, during the American Farm Bureau Federation annual convention last week in San Antonio, Texas. (Photo by Kay Shipman)

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Randolph County Farm Bureau board member Gene Korando explains how the county Farm Bureau provided an intensive agriculture experience for legislatiave aides at the American Farm Bureau Federation annual convention last week in San Antonio, Texas. (Photo by Kay Shipman)

AFBF

Page 7 Monday, January 20, 2014 FarmWeek

New water rules, trade, technology focus at AFBF convention From water resources to trade to technology, attendees of last weekâ&#x20AC;&#x2122;s 95th American Farm Bureau Federation Annual Convention heard the latest information from a host of experts. Virginia Albrecht, a natural resources attorney with Hunton & Williams LLP law firm, noted a new Environmental Protection Agency (EPA) regulation will increase the agencyâ&#x20AC;&#x2122;s scope of the Clean Water Act. The new rule contains no exemption for standard farm practices. And there is no exemption for isolated or manmade water features, such as ditches, Albrecht cautioned. Expected to be released in the next few weeks, Albrecht said farmers must take action on the new rule during a yetto-be-determined 60-day comment period. Trade Promotion Authority Trade officials told convention attendees that Trade Promotion Authority legislation introduced in Congress pro-

vides further evidence negotiations are moving in the right direction. â&#x20AC;&#x153;The Transatlantic Trade and Investment Partnership is the mother of all free trade agreements ... and a game changer for bilateral relations between the European Union (EU) and the United States, potentially leading to 800 million high-spending and highly sophisticated consumers,â&#x20AC;? said EU Ambassador Joao Vale de Almeida. Having recently completed the third round of negotiations, Vale de Almeida anticipates restarting negotiations soon, improving market access, lowering tariffs and building a strong regulatory component. Rowena Hume, New Zealand Embassy trade counselor, echoed Vale de Almeidaâ&#x20AC;&#x2122;s comments on the positive nature of change taking place regarding trade in her region. She said improving trade through the Trans-Pacific Partnership (TPP) will greatly help American agricultural exports,

First choice ag scholarship â&#x20AC;&#x201D; 1st Farm Credit Services is offering 24 scholarships of $1,500 each to graduating high school seniors who have been accepted into an agriculture or ag-related curriculum at a university, college or community college. Eligible students must either live or attend high school within 1st Farm Credit Servicesâ&#x20AC;&#x2122; service territory that covers 42 counties in the northern half of the state. The application deadline is Feb. 17. Recipients will be selected based on academic achievement, community and agricultural youth organization involvement, and brief essays. Eligible students may obtain an application online at {1stfarmcredit.com} or through a local 1st Farm Credit Services office. ISA crop sciences scholarships â&#x20AC;&#x201D; The Illinois Soybean Association (ISA) will award up to 10 crop science scholarships

of $4,000 each to students starting their junior year in the fall at Illinois State University, Southern Illinois UniversityCarbondale, University of Illinois at Urbana-Champaign or Western Illinois University. The application deadline is Feb. 1. Eligible applicants must be majoring in crop production or a crop science discipline, including breeding, biotechnology, plant pathology, weed management or crop management with an emphasis on soybeans. Awards are based on academic ability, leadership and financial need. Recipients may reapply for another $4,000 for their senior year. The IAA Foundation administers the scholarship program. Guidelines and application materials are available at {iaafoundation.org}. Questions will be answered by the program administrator at the IAA Foundation at 309557-2230 or smoore@ilfb.org.

Ag scholarship digest

which she said decreased 40 percent in recent years. â&#x20AC;&#x153;Regaining market share would increase U.S. total exports by $600 million or 3 million jobs,â&#x20AC;? said Hume. â&#x20AC;&#x153;The TPP could increase exports by $2 billion with the dairy industry benefiting the most.â&#x20AC;? Agricultural technology Educating consumers about use of new ag technology may prove to be a big obstacle for farmers, according to Jayson Lusk, Ph.D., Oklahoma State University regentâ&#x20AC;&#x2122;s professor for the agriculture economics department. Farmers and ranchers have to deliver a positive message about what they do, and the technology that allows them to do it, he noted. Most technolo-

Lusk encouraged farmers to communicate with consumers in ways that endure, such as telling agricultureâ&#x20AC;&#x2122;s story by

telling their story. Talk about how technologies have made your farm better. Make sure to let consumers know the tradeoffs that will come with using or not using a technology. And above all, be honest and straightforward. Lusk noted many of agricultureâ&#x20AC;&#x2122;s opponents are calling for a return to a more â&#x20AC;&#x153;natural,â&#x20AC;? romanticized version of farming. Those opponents do not take into account the negative effect the action will have on millions who suffer from food insecurity throughout the world, he added. â&#x20AC;&#x153;A world that celebrates naturalism in food as a core value will be hostile toward growth and innovation even if it can make food more efficient, portable and safe,â&#x20AC;? Lusk said.

What do the new U.S. Food and Drug Administration (FDA) antibiotic rules mean for livestock producers and industry professionals? University of Illinois Department of Animal Sciences staff will address the topic during a webinar from noon to 1 p.m. Jan. 28. The discussion will cover what the new steps mean to the livestock industry, what they donâ&#x20AC;&#x2122;t mean, and how producers and others should respond. The webinar will be presented by professor emeri-

tus James Pettigrew and professor Hans Stein. Pettigrew explained that while the FDAâ&#x20AC;&#x2122;s approach to antibiotic use in food animals had been published previously, the new documents issued this month describe the implementation of that approach. â&#x20AC;&#x153;The documents (issued in December) address only those antibiotics considered important in human medicine, which are all of them except the widely-used ionophores and a few others,â&#x20AC;? Pettigrew said.

â&#x20AC;&#x153;The new rules apply only to antibiotics used in feed or drinking water.â&#x20AC;? The core of the FDAâ&#x20AC;&#x2122;s approach includes no use of human medicine antibiotics to improve growth rate or feed efficiency; all uses of these antibiotics must be under veterinary oversight; and disease prevention is specifically recognized as an approved judicious use of antibiotics. To register for the free webinar go to {go.illinois.edu/antibiotics}.

gy used by modern farmers is both new and often hard to understand, making it difficult for consumers to trust and accurately assess the risks associated with it.

Webinar to focus on new antibiotic rules

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Datebook Jan. 22-23 University of Illinois crop management conference, Mount Vernon. Visit {web.extension.illinois.edu/c srec} for more information. Jan. 28 Conservation cropping seminar, Mendota. Visit {ccswcd.com} for information. Jan. 28-29 Cattle breeding workshop, Dixon Springs Agricultural

Center, Simpson. Registration deadline Jan. 21. Call 618-695-4917. Jan. 29-30 University of Illinois crop management conference, Springfield. Visit {web.extension.illinois.edu/csrec} for more information. Jan. 30 Food entrepreneur conference, 9 a.m. to 4:30 p.m., CGH Medical Center, Sterling. Call 815-626-2665.

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BIOFUELS

FarmWeek Page 8 Monday, January 20, 2014

RFS uncertainty hurting biofuels research, development BY DEANA STROISCH

Contractual biofuels research has virtually stopped at the National Corn-to-Ethanol Research Center, the result of uncertainty over proposed cuts to volume requirements in the Renewable Fuel Standard (RFS). John Caupert, director of the center at Southern Illinois University at Edwardsville, told FarmWeek that cellulosic and advanced biofuels research projects were halted within days of the Environmental Protection Agency (EPA) releasing its proposal in November. “It didn’t slow down. It wasn’t postponed. It wasn’t delayed. It stopped. We’ve not done a single project in our biofuels pilot plant— contractual project — since the proposal came out,” he said. “This is very, very real.” Investors tell him that until the EPA comes out with its final ruling, there’s just too much uncertainty to move forward with research and development projects, Caupert said. FarmWeek

“If this proposed rule is the rule that is finalized, what does this mean for cellulosic ethanol and other advanced biofuels moving forward?” he said. EPA proposed the renewable fuel mandate in the RFS be lowered from 14.4 billion gallons to 13 billion galJohn Caupert lons. The advanced fuel mandate, including biodiesel and E85 fuel, would drop from 3.75 billion gallons to 2.2 billion gallons. Agricultural groups across the country, including Illinois Farm Bureau, oppose the change. “Political uncertainty creates market uncertainty, and where there’s market uncertainty there’s investment uncertainty,” Caupert said. “And when you have investment uncertainty, investment in areas like research, development and commercialization, it’s impacted. In

this case it’s stopped.” As a result, the not-for-profit center projects a 40 to 45 percent drop in contractually-funded projects through the remainder of the fiscal year, which ends June 30. “Name a company in the private sector that would survive when 40 to 45 percent of their gross funding or gross revenue was just gone through no control of theirs,” he said. “That’s the impact of this proposal.” There’s some hope, he said. The phone is starting to ring again at the center. “I think there’s an element of optimism that’s starting to creep back in that all is going to work out in the end,” he said. “But in the meantime, and until these rules are finalized it’s a very uncertain time period not only for this center but for this industry as a whole.” Caupert recently testified against the proposed cuts at an EPA public hearing in Arlington, Va. He also is a member of the governor’s RFS stakeholders group. He says the long-term effects

of EPA’s proposal go far beyond the work at the research center or even biofuels as a fuel. “If this thing is finalized, it

could be absolutely financially catastrophic to the agricultural industry in this country,” he said.

With a Jan. 28 comment deadline quickly approaching, opponents — and supporters — of a proposed reduction in volume requirements under the Renewable Fuel Standard (RFS) ramped up their lobbying efforts last week. In Washington, D.C., 30 members of Congress signed a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy asking her to revise the proposal so it’s “consistent with the law and its requirement to set volumes based on anticipated production.” “Without a revised proposal, we are concerned that the EPA’s proposed rule would impose significant burdens on rural economies while increasing gas prices and our reliance

on foreign oil,” they wrote. Lowering the amount of renewable fuel blended into gasoline “could hurt rural economies, jeopardize American jobs, raise prices at the pump and deter investment in biofuels and biofuel infrastructure,” they wrote. The letter was initiated by Rep. Cheri Bustos, D-East Moline, and Rep. Kristi Noem, a Republican from South Dakota. Also signing the letter were: Reps. Rodney Davis, RTaylorville; Bill Enyart, DBelleville; Tammy Duckworth, D-Hoffman Estates; Bill Foster, D-Naperville; Danny Davis, D-Chicago; Daniel Lipinski, D-Chicago; and Robin Kelly, a Democrat from Matteson. Bustos and Enyart also met with McCarthy last week to discuss the issue. EPA’s proposed change to the RFS has sparked an emotional debate across the country. Locally, some residents received phone calls last week warning that maintaining the current RFS standards could result in higher food prices and damaged car engines. The recorded message, paid for by the American Petroleum Institute, urges people to “stand up for American families” and against “extremists.” It also seeks permission to send a letter in support of EPA’s proposal on their behalf. Lou Lamoreux, who serves on the Illinois Corn Growers Association (ICGA) board, came home Tuesday to find the recorded message waiting for him. He called it “strictly emotional but strictly without facts.” “Everything they were proposing is basically 180 degrees from the truth,” he said. An API spokesman didn’t respond to a request for comment. Lamoreux said the calls, which also were received in Ohio, Missouri and Indiana, were probably meant to counter the phone calls and messages their members are making in opposition to the EPA proposal. The federal agency is accepting comments until Jan. 28. Meanwhile, Illinois Democratic Sen. Dick Durbin is scheduled to participate in a tele-town hall meeting Thursday sponsored by the ICGA. Visit {ilcorn.org} for details. — Deana Stroisch

RFS comment deadline nears

PRODUCTION

Page 9 Monday, January 20, 2014 FarmWeek

Not all dryness concerns alleviated by recent snow, rain BY DANIEL GRANT FarmWeek

Heavy snow across much of the state so far this winter and rain last week, which produced some localized field ponding and street flooding, improved soil moisture conditions in Illinois. Jim Angel, state climatologist with the Illinois State Water Survey, said last week at the University of Illinois Corn and Soybean Classic in East Peoria he expects soils to be in good shape for planting. But concerns about low river, stream and lake levels likely will persist.

‘There are still parts of the Midwest with dry conditions.’ — Jim Angel State climatologist

Topsoil moisture in Illinois through the end of November was 16 percent short, while subsoil moisture was rated 29 percent short.

Anhydrous safety schools upcoming

Several anhydrous ammonia safety schools will be offered throughout the state during February and March. Farmers who own their own anhydrous ammonia storage and/or nurse tanks are required to take safety training. Illinois Farm Bureau recommends any farmers who handle anhydrous ammonia voluntarily participate in the training. The events are sponsored by the Illinois Fertilizer and Chemical Association. The early registration deadline is Feb. 18. Topics will include properties and characteristics of anhydrous ammonia; safety and personal protection; anhydrous ammonia facilities and equipment; transfer and handling procedures; transportation safety and customer instruction; and federal and state regulations. February dates and locations are: Feb. 25, 17th Street Bar & Grill, Marion; Feb. 26, Rend Lake Resort, Whittington; Feb. 27, Unique Suites, Charleston; and Feb. 28, Asmark Agricenter, Bloomington. March dates and locations are: March 4, Civic Center, Mendota; March 5, Monsanto Research Farm, Monmouth; March 6, Oakley Lindsay Center, Quincy; and March 7, Hilton Garden Inn, Springfield. For each program, registration will start at 8:30 a.m., followed by the session from 9 to 11:45 a.m. and lunch at noon. The registration fee is $65 before Feb. 18 and $75 after that date. To obtain a registration form, visit {ifca.com} or call 309-827-2774.

Power

Continued from page 1 high cash rental rates could face additional financial pressure as well. “What looked economical from 2010 to 2013 may not be economical in 2014,” Schnitkey said. “Farmers have to have more yields, at lower prices, to justify inputs (this year).” Farmers who bought machinery in recent years also could feel a pinch at tax time, according to Schnitkey. “A lot of farmers wrote off their machinery very quickly,” he said. “So, from a tax standpoint, that depreciation is gone. Some farmers could still see high tax bills even though they have less income.” Ways to manage power costs this year and in the future include: optimize use of combines (which represent one of the largest power costs), perform only necessary tillage, maintain the proper amount of equipment in inventory and possibly slow down purchases of new machinery, Schnitkey added.

And, as of the first week this month parts of the northern half of Illinois still were abnormally dry or in a drought, according to the U.S. Drought Monitor. “We’ve had a pretty snowy winter so far,” Angel said. “But when you melt that snow down, it’s not a lot of water.” Two feet of snow is the equivalent of about 2 inches of rain, which can be produced by one thunderstorm in Illinois during the summer, Angel noted. “There are still parts of the Midwest with dry conditions,” he said. “But I’m not too worried about it from an agricultural standpoint. Soil moisture is looking pretty good right now. “But we’ll probably still have trouble with low stream and lake levels,” he continued. “I think that will continue.” January and February typically are two of the driest months of the year in Illinois. Precipitation each of those months averages about 2 inches, the climatologist noted. The weather pattern so far this winter included some

freeze/thaw cycles, which allowed much of the moisture received so far to soak into rather than run off the soil. “It (recent precipitation) soaked in pretty well,” Angel said. “I expect to walk into March with excellent soil moisture conditions.”

Precipitation so far this month is on track to be about normal for Illinois in January, Angel added. The National Weather Service three-month forecast is neutral for the possible direction of precipitation and temperature patterns across the state.

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PESTS

FarmWeek Page 10 Monday, January 20, 2014

Can farmers contain spread of problem weeds? BY DANIEL GRANT FarmWeek

Populations of problem weeds, including marestail and Palmer amaranth, spread in Illinois last year. And Aaron Hager, University of Illinois weed scientist, believes marestail pressure could be greater this year if farmers donâ&#x20AC;&#x2122;t take aggressive steps to control it. â&#x20AC;&#x153;It (marestail) is a species we need to keep an eye on in 2014 because of all the seed that was produced in 2013,â&#x20AC;? Hager said last week during the U of I Corn and Soybean Classic in East Peoria. Marestail, also known as horseweed, was a major problem in some areas of the state last year. The â&#x20AC;&#x153;super weedâ&#x20AC;? is difficult to control because some populations are resistant to herbicides from four site-ofaction classes, including glyphosate and atrazine. Some farmers in Illinois last year resorted to hiring chopping crews to walk fields and cut down marestail, Hager reported. â&#x20AC;&#x153;All indications are, weâ&#x20AC;&#x2122;ll have another problem (with marestail) in 2014,â&#x20AC;? Hager said.

Marestail (horseweed) in Illinois has become a more common sight and a growing challenge for farmers to control. A key to reducing marestail populations, particularly those with resistance to glyphosate, is removing stands from fields before they produce seed. (Photo courtesy of Aaron Hager, University of Illinois weed scientist)

A key to controlling marestail is eliminating it before it goes to seed. Otherwise, a single plant can produce 200,000 seeds, which can be carried up to three-quarters of a mile by wind or water. Hager recommended farmers consider fall-applied control of marestail. He said farmers should use a burndown this spring and residual herbicides, and consider a LibertyLink soybean system for management of herbicide-resistant marestail. â&#x20AC;&#x153;Do not plant into existing stands of marestail,â&#x20AC;? Hager

said. â&#x20AC;&#x153;We need to control marestail before planting.â&#x20AC;? It also is important to control marestail in other locations, such as roadside ditches and pastures, to limit growth of the population. Farmers this season also should monitor fields for another problem weed on the move â&#x20AC;&#x201C;Palmer amaranth. â&#x20AC;&#x153;In the summer of 2013, the number of growers reporting Palmer amaranth infestations in their fields in Illinois increased rapidly,â&#x20AC;? said Adam Davis, USDA research ecologist.

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â&#x20AC;&#x153;This is something we have to take very seriously,â&#x20AC;? he continued. â&#x20AC;&#x153;This is a weed that can completely destroy a crop.â&#x20AC;? Glyphosate-resistant Palmer amaranth populations are widespread in the southern U.S. So the first management priority for farmers in the north, including Illinois, should be prevention. Palmer amaranth seed can spread to different farms through contaminated feed grains, animal manure and contaminated machinery. Farmers also should remain vigilant so they can detect populations of Palmer amaranth plants and contain them as soon

as possible. If Palmer amaranth plants survive sequential herbicide applications, they should be treated as herbicide resistant, Davis noted. Patches of potential herbicide-resistant Palmer amaranth should be flagged and removed from fields. If this is not possible, Davis said farmers should avoid Palmer amaranth patches during harvest and mow them down at a later date. Seed samples should be sent to the U of I to confirm identification, for resistance screening and to determine what chemical options are available for future management, Davis added.

Farmers who use an integrated approach to pest management can save money and extend the life of various fungicides, insecticides and crop hybrids, according to University of Illinois experts. Statewide insect surveys conducted last growing season revealed relatively low densities of some pests such as bean leaf beetles, Japanese beetles in the southern two-thirds of the state, and western corn rootworm in southern Illinois, according to Mike Gray, U of I Crop Sciences Extension coordinator and entomologist. Meanwhile, European corn borer (ECB) densities declined to such low levels in recent years the U of I discontinued its ECB survey about five years ago. But farmers continue to plant a large number of acres of Bt/rootworm corn (47.2 million acres in the U.S. in 2011) and in recent years expanded applications of in-season fungicide/insecticide tank mixes. â&#x20AC;&#x153;I call into question the strategy of spraying fields last year as an insurance approach,â&#x20AC;? Gray told farmers at the U of I Corn and Soybean Classic in East Peoria. â&#x20AC;&#x153;My concern is weâ&#x20AC;&#x2122;re starting to see resistance develop.â&#x20AC;? There were reports last year of western corn rootworm injury to first-year corn planted with Bt hybrids. The pest already has adapted to crop rotation in some areas. â&#x20AC;&#x153;The severity to pruning suggests that rotation resistance and resistance to the Cry3Bb1 protein (present in Bt/rootworm corn) may both be present in some western corn rootworm individuals,â&#x20AC;? said Gray, who noted rootworm resistance to Bt hybrids has not yet been proven. Carl Bradley, U of I plant pathologist, also expressed concern that the use of foliar fungi-

cides as â&#x20AC;&#x153;standard practiceâ&#x20AC;? could lead to fungicide-resistant strains. In 2010, some strains of frogeye leaf spot, considered one of the most serious foliar diseases in soybeans, for the first time were found to be resistant to fungicides in the strobilurin chemistry class. Bradley also questioned the use of fungicides as crop insurance, particularly with lower crop prices. â&#x20AC;&#x153;The amount of yield needed to make (a fungicide application) profitable is dependent on price,â&#x20AC;? he said. â&#x20AC;&#x153;The frequency of being profitable will go down (as crop prices decline).â&#x20AC;? For example, a 3-bushel yield response to fungicide in corn paid for the treatment at last yearâ&#x20AC;&#x2122;s corn prices. But this year it will take anywhere from a 5- to 8-bushel yield response to pay for a fungicide application, according to Bradley. Basing fungicide application decisions on disease risk will increase the likelihood of making profitable fungicide application decisions and likely add to the life of each product. For insect management, Gray recommended the adoption of more diversified cropping systems and the use of plantingtime soil insecticides with nonBt hybrids. He further suggested farmers consider rotating soil insecticides, consider rotating Bt hybrids that express different Cry proteins and, if a corn rootworm Bt hybrid is chosen, consider planting a product with more than one rootworm Cry protein. â&#x20AC;&#x153;We have to be good stewards with these very valuable tools,â&#x20AC;? said Gray, who reported the cumulative economic benefit of Bt/rootworm corn since 2003 is an estimated $7.1 billion. â&#x20AC;&#x201D; Daniel Grant

Farmers urged to use integrated pest control

TRADE

Page 11 Monday, January 20, 2014 FarmWeek

Agriculture groups want TPA legislation passed BY DEANA STROISCH FarmWeek

Various agricultural groups, including the American Farm Bureau Federation, hope the introduction of Trade Promotion Authority (TPA) legislation will help advance stalled trade negotiations. The legislation, which was introduced by Senate Finance Committee Chair Max Baucus, D-Mont., Ranking Member Orin Hatch, R-Utah and House Ways and Means Committee Chair David Camp, RMich., would restore President Barack Obama’s ability to negotiate trade deals. Congress would still be able to vote up-or-down on trade agreements, but would not be able to amend them. AFBF President Bob Stall-

man said TPA is needed immediately. “For negotiations to keep moving forward on the Trans-

‘In agriculture, we’ll be expected to make the case for free trade once again. And once again, I’m cer tain we’ll answer the bell.’ — Adam Nielsen IFB director of national legislation and policy development

Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) discussions, we need

Datebook Jan. 30, Feb. 1 Illinois Farm Bureau Young Leader state conference, Normal. Visit {ilfb.org} for more information. Feb. 4-5 Illinois Pork Expo, Peoria. Visit {ilpork.com} for more information. Feb. 5-6 University of Illinois crop management conference, Champaign. Visit {web.extension.illinois.edu/csrec} for more information. Feb. 12-13 University of Illinois crop management conference, Malta. Visit {web.extension.illinois.edu/csrec} for more information. Feb. 18 Illinois Winter Wheat Forum, Mount Vernon. Visit {illinoiswheat.org} for more information. Meet the Buyers event, Orland Park Civic Center, Orland Park. Interested farmers call the Cook County Farm Bureau at 708-3543276 by Feb. 14. Feb. 19 Central Illinois Composting Symposium, Lincoln Land Community College, Springfield. Registration deadline Feb. 5. To register, visit {llcc.edu/greencenter}. Feb. 25 Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, 17th Street Bar and Grill, Marion. Visit {ifca.com} for registration form. Feb. 26-27 Illinois Farm Bureau Governmental Affairs Leadership Conference, Crowne Plaza, Springfield. Contact county Farm Bureau for information. Feb. 26 Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Rend Lake Resort, Whittington. Visit {ifca.com} for registration form. Feb. 27 Conservation cropping seminar, Mount Vernon. Visit {ccswcd.com} for information. Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Unique Suites, Charleston. Visit {ifca.com} for registration form. Feb. 28 Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Asmark Agricenter, Bloomington. Visit {ifca.com} for registration form.

TPA authority in place,” Stallman said in a statement. “We urge Congress to pass the bill without delay and show that

the United States is committed to completing these trade negotiations.” But the proposal already

has met opposition. “We’ve heard that there are Republican and Democrats who are opposed for various reasons,” said Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development. “In agriculture, we’ll be expected to make the case for free trade once again. And once again, I’m certain we’ll answer the bell.” Speaking during last week’s American Farm Bureau Federation’s annual convention in San Antonio, Texas, Rowena Hume, trade counselor for the New Zealand Embassy, said American agricultural exports in the trans-Pacific region have dropped by 40

percent in recent years. “Regaining market share would increase U.S. total exports by $600 billion or 3 million jobs,” Hume said. “The TPP could increase (ag) exports by $2 billion, with the dairy industry benefiting the most.” Ambassador Joao Vale de Almeida, head of the delegation of the European Union to the United States, said he expects negotiations to begin again soon. “Though a few obstacles remain, we are seriously and sincerely engaged in opening up markets for American exports,” Vale de Almedia said.

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IFB IN ACTION

FarmWeek Page 12 Monday, January 20, 2014

State fiscal issues remain top Illinois Farm Bureau priority

BY KAY SHIPMAN FarmWeek

Considering Illinois’ continued fiscal problems, Illinois Farm Bureau will support a state budget that maintains funding for core agricultural programs within the current tax structure, the IFB board decided in December. “Illinois agriculture will again face a state budget proposal that will cause tough decisions to balance spending within the state’s current revenue stream,” said Kevin Semlow, IFB director of state legislation. IFB believes it is vital to maintain funding for key Illinois Department of Agriculture (IDOA) programs, such as meat and poultry inspection, oversight of grain warehouses and grain dealers, Semlow said. Other important IDOA programs include those for weights and measures, pesticide use, food and agricultural products inspection, animal health and other programs that directly support production agriculture,

such as Soil and Water Conservation Districts, University of Illinois Extension, county fairs and others. IFB again will work to establish statewide standards for siting, building and decommissioning commercial wind energy development. Those standards must provide adequate protection of public health and safety, and protect private property rights, while allowing reasonable development of commercial wind energy projects. During the IFB annual meeting, a lengthy debate occurred on the need for wind development siting standards, especially noise standards. In some parts of Illinois, wind energy projects are being sited and built with varied construction standards. Also different, or sometimes no decommission standards exist. “One area we are going to explore is the continued protection of private property rights of landowners who are faced with utility projects that are projected to cut

across their land,” Semlow said. “We believe this is an important issue in light of the increasing activity with proposed electric transmission lines. We will work to strengthen private property rights within the expedited review process for future

tion to implement changes in federal trucking regulations regarding the Covered Farm Vehicle designation in Illinois. The organization also will oppose legislation to place on the ballot a constitutional amendment that creates a graduated state income tax. IFB will oppose legislation eliminating the overtime exemption for agricultural employers or implementing an increase in the minimum wage.

driver’s licensing facility staff that the deadline of Jan. 31 has been delayed by a year for CDL holders having to certify their medical cards. Is that correct?” Rund replied, “Not quite.” Although there had been some speculation, the truth came out Jan. 10 when the Federal Motor Carrier Safety Administration (FMCSA) published its final rule on the extension, according to Rund. The deadline for certification of the medical card remains Jan. 30. The extension was the requirement that all drivers must continue carrying their

medical cards on their person for an extra year — through Jan. 30, 2015. That includes drivers who registered “NI” and were originally going to be allowed to leave the medical card at home, Rund said. A farmer may mark either EI (excepted interstate) or EA (excepted intrastate). However, a farmer, who does nonfarm work in the off-season and crosses state lines for commercial purposes, must mark NI (nonexcepted interstate). NA stands for nonexcepted intrastate. “Bottom line, nothing has changed regarding the deadline for certification,” he added. “The only change is that NI drivers have been added to the ranks of the NA drivers that will continue to be required to carry their medical cards.” For more information, visit FMCSA’s webpage at: {fmcsa.dot.gov/rules-regulations/administration/rulemakings/rule-programs/rule_making_details.aspx?ruleid=468}.

Declare status or risk losing CDL

A farmer with a commercial driver’s license (CDL) must declare his medical card status before the Jan. 30 deadline or risk losing his CDL. Kevin Rund, Illinois Farm Bureau senior director of local government, received the following question recently and shared his response. Question: “I was told by the local Secretary of State’s

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large, complex high-voltage electric service lines,” Semlow added. Other legislative priorities include: • Legislation requiring any decision to permanently post a road at a reduced weight limit or to permanently close a road entail unanimous approval of the road commissioner, county engineer and a majority of the elected members of the board associated with the road district. IFB will support legisla-

Lincoln Land Community College’s Green Center will host the 11th Annual Central Illinois Composting Symposium from 8:30 a.m. to 3 p.m. Feb. 19 on the Springfield campus. The early registration deadline is Feb. 5. Symposium participants share information and discuss ideas to stimulate the composting market. Speakers will include representatives of the USDA Natural Resources Conservation Services, Better Earth, Illinois Recycling Association, Illinois Stewardship Alliance and Southern Illinois University. The registration fee is $30 before Feb. 5 and $35 after that date. A meal is guaranteed only for those who register by Feb. 5. There will be no charge for students with valid identification. The symposium is sponsored by the LLCC Green Center, Illinois Stewardship Alliance, U of I Extension, City of Springfield’s Division of Waste and Recycling, Illinois Department of Agriculture, Illinois Environmental Council and Illinois Recycling Association. For information, call 217-786-4993 or email marnie.record@llcc.edu. To register, visit {llcc.edu/greencenter}.

FROM THE COUNTIES

Page 13 Monday, January 20, 2014 FarmWeek

UREAU — Farm Bureau will co-sponsor an iPad basics class from 6 to 8 p.m. Feb. 4 at the University of Illinois Extension office in Princeton. Cost is $10 for members and $15 for nonmembers. Call the Farm Bureau office at 875-6468 to register or for more information. OLES — Farm Bureau will host a candidate meet and greet at 7:15 p.m. Feb. 18 at the Lifespan Center. Candidates for State Representative, Coles County Sheriff and the Coles County Board have been invited. • Farm Bureau quilt show will be Feb. 28 to March 2 at the Cross County Mall. Quilts may be entered from noon to 7 p.m. Feb. 27 at the mall. Call Nancy Swinford at 217-549-0009 for more information. EFFERSON — Farm Bureau will co-sponsor a trailer towing regulations seminar at 6 p.m. Thursday at the Farm Credit Services building in Mount Vernon. Call the Farm Bureau office to register. • Farm Bureau will sponsor a bus trip to the National Farm Machinery Show in Louisville, Ky., Feb. 12 for Jefferson and Hamilton Farm Bureau members. Cost is $50. Call the Jefferson or Hamilton County Farm Bureau office to register. ANKAKEE — Farm Bureau postponed the market panel discussion scheduled on Jan. 7 due to weather. A new date will be shared when it is scheduled. • Farm Bureau will sponsor an on-the-road seminar at 6 p.m. Jan. 27 at the U of I Extension office in Bourbonnais. Kevin Rund, Illinois Farm Bureau, will be the speaker. Call the Farm Bureau office at 9327471 to register. ASALLE — Farm Bureau and U of I Extension will offer a class in iPad basics and apps for agriculture from 6 to 8 p.m. Jan. 29 at the Farm Bureau office. Cost is $10 for members and $15 for

Tuesday: • Eric Schmidt, EJS Weather Inc. • Ryan Whitehouse, Illinois Farm Bureau: Governmental Affairs Conference • Cynthia Haskins, IFB: Meet the Buyers Feb. 18 • Emily Webel, Confessions of a Farm Wife: AgBlog’s 4th best blog post Wednesday: • Tim Schweizer, Illinois Department of Natural Resources: permits, licenses and campground reservations • Dan Sutton, farmer from Lake County, Ind.: AFBF annual meeting with foreign exchange students • Town & Country Partners: National Great Rivers Museum, Mary Todd Lincoln’s white cake

nonmembers. Call the Farm Bureau office at 433-0371 to register. EE — Foundation scholarships are available for high school seniors and undergraduate students who are studying agriculture-related fields of study. Applications are available at {leecfb.org}, by emailing leecfb@comcast.net or by calling the Farm Bureau office at 857-3531. Application deadline is Feb. 1. • Young Leaders will attend a Rockford Ice Hogs hockey game on Feb. 22. Cost is $13. If you are interested in attending, call the Farm Bureau office at 857-3531 or email leecfb@comcast.net by Feb. 10. IVINGSTON — Farm Bureau’s annual meeting will be at 6:30 p.m. Tuesday in the Farm Bureau office. For more information call the Farm Bureau office at 842-1103 or email livcfbmgr@yahoo.com. • Farm Bureau and COUNTRY Financial will sponsor a crop insurance seminar from 10 a.m. to noon Jan. 29 at the Farm Bureau office. For reservations visit {countrycrop.com/update}, call 842-1103 or 8421376 by Jan. 27. ERCER — Farm Bureau will sponsor a blood drive from 11:30 a.m. to 5:30 p.m. Tuesday at the Aledo VFW Hall. Call the Farm Bureau office at 582-5116 to set up an appointment. ONROE — Foundation scholarship applications are available by emailing mcfarm@htc.net. Application deadline is Feb. 15. ERRY — Farm Bureau will sponsor a market outlook seminar at noon Thursday at the Farm Bureau office. Dale Durchholz, AgriVisor, will be the speaker. Call the Farm Bureau office for reservations today. • Farm Bureau will sponsor a charter bus trip to the National Farm Machinery Show in Louisville, Ky., Feb. 13. Cost is $55. Call the Farm Bureau

M M P

• Troy Frerichs, COUNTRY Financial: main street and Wall Street at odds Thursday: • Rob Shaffer, Illinois Soybean Association: animal agriculture • Zachary Grant, University of Illinois: sustainable farm operations • Brian McGill, Illinois Agricultural Association Credit Union: keeping your account information safe Friday: • Bob Haselwood, United Soybean Board: Take Action Program • Mark DePue, Abraham Lincoln Presidential Library: school consolidation To find a radio station near you that carries RFD Radio Network®, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”

office at 357-9355 for reservations or more information by Feb. 6. ICHLAND — Farm Bureau will co-sponsor a bus trip to the National Farm Machinery Show in Louisville, Ky., at 6:30 a.m. Feb. 12. Cost is $25. Call the Farm Bureau office at 393-4116 for reservations or more information. T. CLAIR — Farm Bureau’s annual meeting will be at 7 p.m. Friday at Albert’s Restaurant in Belleville. Cost is $10. Call the Farm Bureau office at 233-6800 for reservations. TEPHENSON — Farm Bureau will sponsor Stroke Detection Plus health screenings from 9 a.m. to 4:30 p.m. Feb. 6 at the Farm Bureau office. Members will receive a discount. Call 877-732-8258 to schedule an appointment. • Farm Bureau will offer a basic CPR class from 9 a.m. to noon Feb. 22 at the Farm Bureau office. Cost is $15 for members and $20 for nonmembers. Call the Farm Bureau office at 232-3186 or visit {stephensoncfb.org} to register or for more information. • Farm Bureau will sponsor a

R S S

bus trip to the John Deere Harvester Works, the John Deere Pavilion, Kinze Manufacturing and the Coral Ridge Mall March 25. Call the Farm Bureau office at 232-3186 or visit {stephensoncfb.org} for more information. • Farm Bureau will sponsor a bus trip to Conklin’s Barn II Dinner Theatre in Goodfield April 6. Cost is $60 for members and $65 for nonmembers. Call the Farm Bureau office at 232-3186 or visit {stephensoncfb.org} for more information. ASHINGTON — Farm Bureau will sponsor a market outlook seminar at 8 a.m. Thursday at the Little Nashville Restaurant. Dale Durchholz, AgriVisor, and a COUNTRY Financial representative will speak. For reservations, call the Farm Bureau office today. • Young Leaders will host a weed management seminar at noon Jan. 28 at the Little Nashville Restaurant. Barry Nash, GROWMARK, will be the speaker. For reservations, call the Farm Bureau office by Thursday. • Farm Bureau’s annual meet-

ing will be at 6:30 p.m. Jan. 30 at the Community Center in Nashville. IFB President Rich Guebert Jr. will be the speaker. Cost is $5. For reservations, call the Farm Bureau office by Monday. • Farm Bureau will sponsor a charter bus trip to the National Farm Machinery Show in Louisville, Ky., on Feb. 13. Cost is $55. Call the Perry County Farm Bureau office at 618-3579355 for reservations or more information by Feb. 6. AYNE — Farm Bureau will offer seven scholarships to students majoring in an ag-related field of study. For an application, visit {waynecfb.com}. Application deadline is Feb. 28. HITE — Young Leaders will offer a scholarship for a student majoring in an ag-related field of study. Visit {whitecfb.com} for an application. Application deadline is March 31.

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.

PROFITABILITY

FarmWeek Page 14 Monday, January 20, 2014

Illinois Pork Expo Feb. 4-5 in Peoria

Seminar to focus on PEDV BY DANIEL GRANT FarmWeek

Pork producers can network and learn about the latest issues and technology in the industry next month at the 2014 Illinois Pork Expo. The annual event organized and hosted by the Illinois Pork Producers Association (IPPA) will be held Feb. 4-5 at the Peoria Civic Center. “It’s a good place for producers to come and learn and talk with exhibitors,” said Pam Janssen, a Woodford County pork producer and IPPA board member who is chairman of this year’s Expo. “We’ve got several more exhibitors coming (this year).” The event will feature educational seminars for farmers in commercial pork production and those who produce show pigs. Farmers also can learn more about the industry by stopping by the University of Illinois Research and Pam Janssen Extension Information Center at the Expo. One of the educational seminars will focus on porcine epidemic diarrhea virus (PEDV), a new virus impacting many Illinois farms since it was identified in the state last spring. “This new virus is a little scary,” Janssen said. “We still don’t know for sure what it is. “It (PEDV) hits newborn pigs fast. Mortality is a big factor,” she continued. “Once a farm gets it, you could have eight to 12 weeks where you could lose most of your litters. In six months to a year, we’ll probably see less pork” on the market due to PEDV. The inventory of hogs and pigs in the U.S. as of Dec. 1 totaled 65.94 million head, down 1 percent from the previous year. The breeding inventory declined 1.1 percent last quarter compared to expectations of 1 percent growth. More information about the Illinois Pork Expo is available online at {ilpork.com} or by calling IPPA at 217-529-3100.

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) $38.00-$73.86 $49.24 40 lbs. (cash) $80.00-$103.00 $95.35 Recipts

This Week 83,032 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 85,444

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $75.97 $78.34 -$2.37 $56.22 $57.97 -$1.75

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

This week $143.68 $143.18

Prev. week NA NA

Change NA NA

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week $171.32 $171.60 -$0.28

Lamb prices NA

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/09/2014 59.4 25.2 20.9 1/02/2014 58.8 13.6 19.3 Last year 41.0 10.7 9.6 Season total 984.3 768.2 493.8 Previous season total 861.0 539.8 272.7 USDA projected total 1450 1100 1400 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Fertilizer buyers awaken around the globe buying has kicked in as we get closer to spring. On the other hand, the relatively weak fall season Why do today what you can put off until for anhydrous ammonia application caused excestomorrow? There had been a lot of waiting on sive inventory carryover, and with supplies abunthe part of fertilizer buyers globally in recent dant, prices for anhydrous ammonia have weakened months. Prices for most fertilizers had been falling for most of the past year, and putting off so far. Comparatively, anhydrous ammonia has the potential to be “bargain priced” for spring, till tomorrow what you could do today certainly in relation to UAN solution. turned out to be good buying strategy. Potash has stayed weak too because of As we’ve discussed before, since the new global supplies and heightened supprice spike of 2008 and the price imploplier competition for sales. And prices for sion of 2009, fertilizer buyers all seem to all fertilizers look to be lower year-overbe “wait-and-see” buyers, using a “waiting year this spring compared to recent years strategy” as a risk management strategy; (in the case of anhydrous ammonia the and this has been the case across the globe. difference looks particularly substantial). As we’ve also alluded to previously, But a caution worth noting is that in the fertilizer market is in transition from Joe Dillier spite of new supply capacity now and in what has predominantly been a the next few years, prices can rise sud“demand-led” market in recent years where rising global demand has been propelling denly as we’ve seen recently. This happens when buyers can “defer no more” and/or when they prices higher to a “supply-led” market where get comfortable enough with the nearby outnew global production capacity and new supply look that they start buying “en masse.” Hedging has pressured prices lower in recent months. In the current dynamics of fertilizer markets, your “fertilizer bets” by buying fertilizer and selling grain at the same time, and/or buying these two phenomenon are big, and how they play out can go a long way in determining near- fertilizer in smaller increments may be the best strategy to secure supply and deal with continuterm price direction. ing fertilizer price volatility. For the past six weeks or so, prices for urea, UAN solutions and phosphates have been on the Joe Dillier is the GROWMARK director of plant rise as buyers seek to secure needed supplies and food. His email address is jdillier@growmark.com. waiting to buy is no longer an option. European

BY JOE DILLIER

Illinois hog producers want choice of housing systems

Illinois hog producers want to maintain their choice of housing systems for their animals despite recent announcements of more industry plans to transition from gestation stalls to open housing. Smithfield this month asked its contract sow farmers to convert to group housing systems by 2022. Smithfield unveiled the plan to phase out gestation stalls back in 2007, but cash flow challenges in 2008 and 2009 slowed the process. An estimated 54 percent of gestating sows in Smithfield’s company-owned units currently are housed in groups. Tyson Foods this month also announced it will urge suppliers to implement a series of production practices it deems representative of responsible food production. The recommendations include video monitoring in sow farms, pain mitigation for tail docking and castration, and the recommendation for sow housing built or renovated in 2014 and beyond to provide “adequate quality and quantity of space for gestating sows.” The National Pork Board responded to the industry announcements by noting it will continue to recognize and promote the opportunity for producers, working with their veterinarians, to make the best decisions for their farms, families and animals. Julie Maschhoff, vice president of public policy and public relations at The Maschhoffs, a Carlyle-based pork production network that partners with more than 450 family farms across the Midwest, said housing is just one aspect of a systems approach to proper animal care. “We need to remind con-

Illinois Pork producers Kate Hagenbuch (LaSalle County), front left, Pam Janssen (Woodford County), back left, and Carrie Pollard (Winnebago), back center, of Bethany Animal Hospital in northern Illinois, discuss sow housing with Sebastian Ley, right, on his pork operation in northern France during the IFB Animal Care Study Tour last year. (Photo by Daniel Grant)

sumers and our friends in the packing industry it’s the farmer who provides good animal husbandry and care,” Maschhoff said. The Maschhoffs partner with family hog farmers who use a variety of housing options. All options, including the use of gestation stalls, that provide proper care for animals should remain on the table, she noted. “We have a variety of types of housing systems that work well for raising animals humanely,” Maschhoff said. “It (determining which housing system to use for hogs) has to remain a producer choice.” Pam Janssen, a pork producer from Woodford County, agreed that producers and their veterinarians should decide which housing system is best for their animals. Gestation stalls protect sow health by reducing fighting and bullying among the herd. “For us, (gestation) stalls work very well,” Janssen said. “We don’t have hired labor and pen gestation takes more management.” Many food retailers, including

McDonald’s and Oscar Mayer, also made plans to source pork in the future from farms that don’t use gestation stalls. But, at this point, the cost of transitioning farms and the possible increased cost of production likely will fall in the laps of producers. “A lot of consumers and some of the media I don’t think realize the cost to transform one farm to something else,” Janssen said. “If something works for a particular farmer, they should have the opportunity to keep doing what they’re doing. “They have the best interest of that animal,” Janssen continued. “And it may be the only way they can stay in business.” Janssen participated in the Illinois Farm Bureau Animal Care Study Tour to Europe last summer to see how European farmers are dealing with a new law that banned the use of gestation stalls. A farmer survey in northern France revealed about 10 percent of French hog farmers left the business or plan to leave the business due to the law implemented Jan. 1, 2013. — Daniel Grant

PROFITABILITY

Page 15 Monday, January 20, 2014 FarmWeek

CASH STRATEGIST

Big acres present big challenge

Looking ahead to 2014 crops, the one thing that is readily apparent is the large available acreage base U.S. producers will have to work with. While we don’t know the mix of crops that will be planted on those acres, we do know producers have a lot of acres they can plant. In 2013, our total acreage base, including land planted, prevent plant acres and Conservation Reserve Program (CRP) acres, was 319.1 million in the major corn states. Of that, 21.4 million acres were in CRP, leaving 297.7 million acres to be planted to all the crops produced in those states. Eight million of those were in prevent plant, pulling the plantings down to 289.6 million. Another 7 million of the plantings were double-crop soybeans, putting the actual acreage base planted at 282.6 million. According to the latest CRP sign-up data, more than 1 million acres came out of CRP this fall becoming available for planting or pasture or not used at all. That should boost the total base to 283.6 million acres. In 2013, the acreage desig-

nated “prevent plant” under crop insurance guidelines was 8.05 million in the major corn producing states. In the data the USDA Farm Service Agency made available, 2012 had the lowest prevent plant acres, 1.2 million. In 2007, there were 1.5 million acres, and on average, 4.1 million has been designated prevent plant, with two extraordinarily high years pulling the average up. Using a 2 million acre prevent plant forecast for 2014, it would allow 289.6 million acres to be planted. Adjusting double-crop soybeans down to 6 million acres puts potential total plantings in major corn states at 295.6 million acres, up 6 million acres from 2013. On Friday, Informa Economics projected plantings of the eight major crops would only increase 3.2 million acres this year. That leaves another 2.8 million acres unaccounted for. Part of that may go to other crops, hay in particular, but it still suggests plantings of the major crops could easily reach their latest forecasts, 93.3 million for corn, 81.3 million for soybeans, 55.8 million for wheat and 11 million for cotton. If weather is good and yields are near trend, production of all crops will be big and supplies will grow more.

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Corn Strategy

ü2013 crop: The corn market should only be going through a correction of the post-USDA Jan. 10 report surge. Still, there’s risk the correction could take March futures below $4.10 again. If you need to price corn by month’s end, use rallies to make those sales. Otherwise, there’s still reason to expect better pricing opportunities will come this winter. At the least, you should consider locking up the basis on planned winter sales. ü2014 crop: Like old-crop prices, new-crop ones are going through a correction of the surge that occurred with the USDA report. December futures should have completed the move down off the August high. December has little significant resistance until $4.75 to $4.85. vFundamentals: Even though corn supplies are still comfortable, we’d expect end users, domestic and worldwide, to become more aggressive pushing coverage forward. The negative talk surrounding China is a drag, but is not a big factor fundamentally.

Cents per bu.

Soybean Strategy

ü2013 crop: Price remaining old-crop soybeans now. The Argentine weather forecasts have carried prices upward to start the new year, but the situation ahead looks a little more uncertain. Even if they have modest issues, South American supplies entering the world pipeline this winter/spring will be big. ü2014 crop: November futures moved into short-term resistance, quickly turning lower. Still, the cycle counts keep the door open to seeing modestly better prices to add to sales. Nevertheless, use rallies to $11.25 on November futures for catch-up sales. vFundamentals: Most of the attention is on South American crops, Argentina’s in particular. The latest forecasts indicate cooler temperatures and better rain chances should occur this week. Brazilian harvest is moving along nicely with Mato Grosso thought to be 5 percent done, and Parana 2 percent done, both ahead of

last year. That paves the way for South America to start loading soybeans soon.

Wheat Strategy

ü2013 crop: The wheat market still hasn’t signaled it’s ready to turn up out of a cycle low, but downside risk is not that large either. Hold off making sales for now. Nevertheless, nearby Chicago futures aren’t likely to get above $6.25 to $6.40 this winter. Plan to make sales on a move into that range. ü2014 crop: Like old-crop prices, new-crop prices should offer better marketing opportu-

nities later this winter/spring than they do now, especially with the smaller plantings. Target a move to $6.35 to $6.50 on Chicago July futures to make sales. vFundamentals: Traders seem to be rehashing the same old supply news. While that is keeping prices weak, it shouldn’t be able to press them sharply lower. The warmth and dryness across the European Union and Black Sea areas is a situation worth watching. And moisture conditions are still not great in the U.S., especially in the Great Plains. They are good in soft red areas, but those plantings were down, too.

PERSPECTIVES

FarmWeek Page 16 Monday, January 20, 2014

Five keys to successful red meat exports

strikes again Y

ou can’t make it up. It’s real. The Occupational Safety and Health Administration (OSHA) is after us again. They are so creative. I got my details on this latest regulatory overreach from a recent Wall Street Journal and former Secretary of Agriculture Mike Johanns. “Since the 1970s, annual federal appropriations bills have explicitly prohibited the federal workplace overseer from descending on small family farms. It says — OSHA does not have jurisdiction over farming operations with 10 or fewer employees.” Is that clear? However, OSHA decided to classify family farms as commercial grain handlers. They think that should give them the authority to regulate the grain storage facility. Johanns called this action “absurd — a violation of the law.” From my perspective, I JOHN am shocked. I guess I should not be surBLOCK prised. My farm fits their definition. We have grain storage. We have fewer than 10 employees, and it’s a family farm. Former Ag Secretary Johanns is a senator from Nebraska now. OSHA recently fined a small Nebraska farm $130,000. For what? No one was hurt. I guess the farm didn’t “have a written plan to control fugitive grain dust” in the grain storage bins. Since the case is still being litigated, OSHA says it can’t comment. Another example is a father-and-son farming operation in Ohio with one employee. An OSHA inspector showed up on their farm and began pressing them, questioning them. After the Ohio farm contested OSHA’s claims, OSHA withdrew all citations against the farm. Maybe OSHA will come to realize that agriculture is not going to take this kind of unlawful overreach laying down. We need to stand our ground. This is a growing problem for agriculture and other industries. In the first place, President Obama’s agenda is to regulate more. “Government knows best.” And second, it is not surprising that regulatory agencies will look for more things to regulate. That’s how they justify their existence. The best solution is to cut their budget. Take their money away. John Block, former U.S. agriculture secretary and a hog farmer from Knox County, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda and Terman.

Letter writer takes Gov. Quinn to task

Editor: When Gov. Quinn spoke at Illinois Farm Bureau’s 2013 annual meeting, he expertly stroked the delegates and the agricultural community with some flattering comments. Mr. Quinn bragged on the farm community mentioning specifically its importance “to our economy” and “our rural values.” No doubt! The hard-working agricultural community has been a bright spot within

The global red meat marketplace is a diverse and shifting landscape. The rewards for the U.S. industry for exports are sizable — currently equaling $249 of export value per head of fed slaughter on the beef side and $53 per head for pork. Over the course of my career, I have come to understand the uncertainties that come with global commerce cannot be totally avoided, but important lessons can help us escape repeating past PHILIP failures. That SENG has led U.S. Meat Export Federation (USMEF) to adopt a core set of five principles for success in the international red meat marketplace. 1. Inside knowledge of the market is essential. Decisions on the viability and potential of various markets require a combination of thorough market analysis and inside information — ideally from professionals living and working in those markets. USMEF has representatives in 18 locations around the world and operations in 80 or so countries at any one time. We regularly assess whether it is better to invest in an existing market versus a new, up-and-coming market. We weigh a variety of factors, including: • What market share does the U.S. currently have in that country? • What is the potential market size? • What is the economic outlook for the country and the specific market niche? After evaluating those and other factors, we will make financial commitments that typically combine short- and long-term initiatives in key export markets and exploratory efforts in new markets. 2. There are no guarantees.

LETTER TO THE EDITOR

this state’s dismal business climate. Deeply in red, the Illinois government conveniently discovered that land taxes must be raised drastically over the next few years. Not to mention confiscatory estate taxes already in place. And then there is the excise tax recently imposed on the hoped for oil and gas boom. The governor also stated, “We’ve done good things in Illinois. We have to do a whole lot more, and in the end, we’ll make the will of the people the law of the land.”

Yet, it is reported that he and Speaker Madigan arm twisted and made promises of money to key districts to get certain legislators to vote against the will of their constituents enabling the passage of SB10, erroneously titled Fairness in Marriage Act, sanctioning same sex “marriage.” This act has fewer protections for churches, and none for business, than the one imposed on Massachusetts. Yet, he must think this attempt to use the power of the state to redefine marriage,

That lesson was brought home clearly early in 2013 when Russia, a top-six market for both U.S. beef and pork, abruptly closed its borders to U.S. red meat from any animals fed beta agonist growth enhancers. During 2012, Russia purchased U.S. red meat valued at $588.8 million. After Russia’s action in February, U.S. pork exports there fell 75 percent and beef exports slumped 95 percent for the year. The U.S. government and industry are working diligently to reopen the Russian market. 3. Do not underestimate the power of relationships. Ten years ago, the scourge of BSE came to the United States and virtually closed the door on U.S. beef exports that had reached 2.8 billion pounds valued at $3.856 billion in 2003. The next year exports fell 75 percent in volume and 79 percent in value. Two markets, Japan and South Korea, collectively accounted for 49 percent of the volume and 57 percent of the value of U.S. beef exports in 2003, but only one-half of 1 percent of each in 2004. As sales to two of our top three beef markets plummeted, we could have focused on those that remained open. However, we understood that both of these markets were critical for the long-term profitability of the U.S. industry. We also knew U.S. beef occupied a unique niche, particularly in Japan. Over the ensuing years, USMEF focused on education regarding the quality and safety of U.S. beef, anticipating a time when the Japanese and Korean scientific communities would recognize what we already knew — U.S. beef is safe, high quality and an outstanding value. While the rebound has been challenging, Japan is once again the No. 1 market for U.S. beef exports and South Korea continues to recover. 4. Change is constant. In the case of mainland China, there have been changes in

or more accurately undefine it, was among the good things he has done and is consistent with our rural values. It seems he ignored thousands of pro-family citizens who went to Springfield last October to let him know the will of the people. Obviously, it is the will of only a few that matters to Gov. Quinn and not the design and natural order of things, traditional values or what God tells us for our good through the Bible. DANIEL HARMS Bone Gap

market access in the past, including issues for U.S. pork in 2009 related to the H1N1 virus. As for beef, China was a growing but relatively modest market just one year ago. During the first 10 months of 2012, it imported 84.4 million pounds of beef valued at $153.7 million from all international suppliers. Fast-forward one year. China’s beef imports for the first 10 months of 2013 skyrocketed almost 600 percent in value to nearly $1.1 billion and 560 percent in volume to 558.2 million pounds. Unfortunately, the United States’ chance to participate in this growth has been blocked because U.S. beef has not had access to this market since the end of 2003. 5. Flexibility is essential. USMEF faces its biggest challenge in maximizing the value of U.S. red meat exports by maintaining the balance necessary to collaborate with business partners around the world, while operating with the flexibility to adapt when circumstances beyond our control change the rules of the game. Using the example of Russia, USMEF representatives in Moscow and St. Petersburg had extensive campaigns laid out for the year ahead when the market closed in February 2013. Some programs with key importers and business partners have continued to maintain relationships and a level of visibility. And some resources were realigned to focus on regional markets that remain open, like the Ukraine. In summary, there is no single key to success in the global red meat market. The U.S. beef, pork and lamb industries enjoyed record-setting exports in 2012, topping $11.8 billion in value. It is our goal — and challenge — to maintain upward momentum. Philip Seng is president and chief executive officer of the U.S. Meat Export Federation. This column is reprinted with permission.

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