IllINoIs NAtuRAl Resources Conservation Service will seek a new state conservationist following Bill Gradle’s retirement. ....... 3
the sIze oF soyBeAN and corn crops increased in last week’s USDA crop production report. ............................................... 6
IllINoIs FARM FAMIlIes is encouraging county Farm Bureaus to work with local commodity groups on consumer activities. .7
Monday, January 16, 2012
Two sections Volume 40, No. 3
Fiscal, farm bill responsibility aims for AFBF BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
The American Farm Bureau Federation (AFBF) last week offered Washington policymakers a deal: A fiscally responsible new ag policy in exchange for across-the-board fiscal responsibility by the White House and Capitol Hill. Following a whirlwind oneday delegate policy debate session in Honolulu, Illinois Farm Bureau President Philip Nelson told FarmWeek he was “pleased where we ended up” with respect to prioritizing crop insurance and setting the stage for a meaningful new farm program revenue safety net. Producers approved an IFB resolution demanding Congress and the president “set aside political differences” to bring deficit spending under control. The resolution seeks to lower the now nearly-$15 trillion national debt “with the ultimate goal of leaving the federal government debt-free.” Delegates agreed they must contribute with others to the effort, endorsing new safety net programs “that do not guarantee a profit, but instead
protect producers from catastrophic occurrences.” While eschewing specifics of AFBF’s recently proposed Systemic Risk Reduction Program, they supported the “basic principles” of a catastrophic revenue loss program that enables producers to further buffer risk through buy-up insurance policies. A few southern delegates put up a brief, unsuccessful battle to reinstate support for continued direct payments. Nelson argued “we plowed that ground” in the fall, when House-Senate ag committees offered up direct payments as a deficit reduction move to protect safety net spending. “We have the parameters to be engaged in farm bill discus-
sion,” Nelson said. “I think our delegates recognized that we need to be realistic in our expectations. We’re going to have make sure we have our priorities in line as we write the farm bill.” Fiscal firmness IFB’s resolution proposes reducing the deficit each year with a goal of beginning to lower debt by 2019. That goal would be accomplished primarily through “spending restraint rather than by increasing taxes,” the delegates said. Under the resolution, all government departments would be subject to spending cuts, entitlement programs would undergo fundamental reform, and policymakers would recognize “the potential
During last week’s American Farm Bureau Federation annual meeting in Honolulu, Illinois Farm Bureau President Philip Nelson delivers a “sense of the delegate body” resolution admonishing Congress and the White House to exercise fiscal responsibility in forthcoming policy and acrossthe-board budget spending. A similar resolution, addressing members of the Illinois General Assembly and the state’s constitutional officers, was introduced by the Ogle County delegation at the IFB annual meeting in Chicago. (Photo by Martin Ross)
FarmWeek on the web: FarmWeekNow.com
economic benefits of tax reform.” AFBF President Bob Stallman cited reform potential amid election year debate over the U.S. becoming “an entitlement society vs. an opportunity society.” “As we eclipse the $15 trillion mark — that’s $48,000 for every man, woman, and child
in the U.S. — we really need to get our fiscal house in order if we’re going to have a vibrant economy in the very near future,” Nelson argued. Net goals Delegates nonetheless insisted agriculture should contribute only its fair share to See AFBF, page 5
Producers can ‘rise up’ above political rhetoric Producers can make themselves heard above the “sound-bite rhetoric” that has dominated political campaigns. And that’s crucial if the ag sector hopes to continue to be a bright spot in the U.S. economy, according to Agri-Pulse Communications senior editor Stewart Doan. Agriculture has yet to emerge as a major issue in the 2012 elections, Doan told producers at the American Farm Bureau Federation’s (AFBF) annual meeting in Honolulu. However, the industry’s ability to garner public attention and support “has been shown time and again,” he argued. Doan cited Farm Bureau’s recent successful effort to clarify federal motor carrier safety rules that had threatened to categorize crop-share tenants as “for-hire” carriers subject to costly commercial license requirements. With economic recovery a linchpin issue in 2012 races, the ag sector has a potentially influential voice. AFBF President Bob Stallman maintained “American agriculture is making our nation stronger,” linking a projected $137 billion in fiscal 2012 ag exports to 1.2 million U.S. jobs. Agriculture’s relative economic strength also poses some election-year challenges. “The big challenge is for agriculture to keep its issues in front of candidates running for office in 2012,” Doan told FarmWeek. “As you know, there wasn’t a lot of attention paid to agriculture in the lead-up to the Iowa caucus. I would argue that is primarily because agriculture currently is doing very well. But when agriculture does rise up from the grassroots, it can have success.” Expiration of the federal Volumetric Ethanol Excise Tax Credit “took some of the starch out of the ethanol issue in the caucus rhetoric,” Doan said. But agriculture has other key issues to highlight on the campaign trail, including the impact of overregulation and high taxes and the importance of U.S. trade to the general economy. Doan offered some predictions in his remarks to Farm Bureau members, suggesting Republicans could take control of the U.S. Senate while Democrats likely will pick up some seats in the House next November. Pitched, polarized campaign rhetoric has obscured possible answers to policy problems, Doan said. For example, he believes “neither side wants a solution” to the immigration issue” — “They want an issue.” Doan urged the “middle majority” — voters who represent neither major party extreme — to more actively lobby lawmakers and candidates for solutions. “We do get the government we deserve because we don’t get off our duffs,” he said. — Martin Ross Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, January 16, 2012
Quick Takes STORM REPAIR $ COMING — The Illinois Department of Transportation (IDOT) will receive $7.7 million to help repair roads and bridges damaged by storms last year, Gov. Pat Quinn and U.S. Sen. Dick Durbin announced last week. Northwestern Illinois towns will receive $4.756 million to defray costs to repair damage caused by high winds and torrential rains on July 27. Southern Illinois communities will receive $2.961 million to cover damage expenses due to widespread spring heavy rain and flooding mainly along the Ohio and Mississippi river basins. ADM TO CUT 1,000 JOBS — Archer Daniels Midland Co. announced last week plans to cut 1,000 out of 30,000 positions worldwide, according to the Associated Press. The action would reduce ADM’s corporate staff by 15 percent and would be equal to 3 percent of its total workforce. No details were released about the number of jobs that would be lost in Illinois or in the company’s hometown of Decatur. ADM executives said the company expects to save roughly $100 million annually from the job reduction.
CAN COMBINE SETS RECORD — John Deere’s full-size combine built from cans and bags of food not only was a work of art, it was a world-record sculpture, too. According to Guinness World Records, Deere’s combine was the largest sculpture ever built from canned food, more than double the number of cans used in the previous record sculpture. The structure, built by 450 Deere volunteers, measured 60 feet wide, 80 feet long, and 16 feet tall. It entailed 308,448 cans and 11,268 bags of food that were donated to the River Bend FoodBank, which serves families in 22 counties in Western Illinois and eastern Iowa.
(ISSN0197-6680) Vol. 40 No. 3
January 16, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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AFBF Illinois FSA, RD unaffected
‘Tough calls’: USDA plans office closings
BY MARTIN ROSS FarmWeek
Last week, U.S. Ag Secretary Tom Vilsack unveiled “tough choices and tough calls” aimed at slashing USDA budget costs, including plans to close 249 agency offices. During the American Farm Bureau Federation annual meeting, Vilsack reported 131 smaller Farm Service Agency (FSA) county offices would be slated for closure across 32 states. No FSA closings currently are planned in Illinois. Texas would lose the most offices — 15 — followed by Arkansas with 10 proposed closings and Tennessee with nine. “We found there were 35 (FSA) offices that had no employees at all,” Vilsack related. “That meant there were locations we had equipped that someone would periodically come to, but not on a regular basis.” The USDA plan proposes closing 43 Rural Development (RD) offices in 17 states and 24 Natural Resources Conservation Service (NRCS) soil survey offices in 21 states. Again, Illinois has been spared proposed RD or NRCS closings. USDA’s five Food Safety Inspection Service (FSIS) district offices will be consolidated, while 31 Food, Nutrition, and Consumer Services offices in 28 states will be reorganized along regional lines and 12 Ag Research Service (ARS) programs will be terminated across 10 labs nationwide. Peoria’s National Center for Ag Utilization Research is not affected by the current USDA plan. According to the secretary, consolidation of agency offices overall should save $150 million a year toward deficit reduction. USDA nonetheless should be able to maintain “a strong presence in virtually all counties in the country as well as around the world,” he said. Targeted FSA offices should begin closing between now and July 1. Most other agency closings will commence over the next seven to nine months, though Vilsack argued FSIS consolidation will require “quite a bit more time.” Vilsack told FarmWeek USDA’s plan is “separate and distinct from the program (funding) discussion that’s obviously going to take place in the context of the farm bill.” “I want to make sure Congress understands that we’re doing our part,” he said, however.
Ag Secretary Tom Vilsack outlines USDA cost-cutting measures, including nationwide agency office closings, during a news conference following his address to Farm Bureau members gathered in Hawaii. Planned consolidations would not affect Illinois county offices or agricultural research facilities at Peoria. (Photo by Martin Ross)
Within the past few years, USDA has achieved a 12 percent reduction in its operating budget, in part through an “early out” program for employees near retirement. The goal has been to avoid layoffs or temporary staff “furloughs” that would prove “disruptive” to agency services, Vilsack said. He noted “we’re doing a record amount of work” related to farm programs, crop insurance, conservation programs, and high USDA farm and home loan volumes. USDA thus has sought an added $90 million in annual savings through reduced travel and purchases and greater staff efficiency through consolidation of crop and other annual agency reports. USDA also plans to trim a current 700 department cell phone contracts to 10 and employ greater “strate-
gic sourcing” of technolog y and equipment. In some cases, new costsaving moves could bring some strain to USDA and its constituents. USDA plans to close two international Foreign Ag Service offices despite a heightened workload resulting from a bump from four to 20 U.S. free trade agreements and a rising number of non-tariff trade barrier issues over the past 10 years. The Animal and Plant Health Inspection Service (APHIS) faces elimination of 15 offices in 11 states and offices in five foreign countries. Vilsack insisted APHIS closings would not affect efforts to monitor “what comes into this country.” “We’re not going to sacrifice the quality of the work we do; we’re just going to do it in a different location,” the secretary said.
EXCELLENCE REWARDED
American Farm Bureau Federation President Bob Stallman, left, congratulates Illinois Farm Bureau President Philip Nelson for the state’s Award for Excellence. The award cites state Farm Bureau performance in five program areas: ag education and promotion, leadership development, member services, policy implementation, and public relations and information. (Photo by Ken Kashian)
Page 3 Monday, January 16, 2012 FarmWeek
EmErgiNg issuEs
Illinois NRCS undergoes a change of leadership BY KAY SHIPMAN FarmWeek
The Illinois Natural Resource Conservation Service (NRCS) is in the market for a new state conservationist with the recent retirement of Bill Gradle. Gradle retired after 34 years with the federal government, the last 15 as the head of federal conservation efforts in Illinois. Illinois native Ivan Dozier, previously assistant state conservationist for programs, is serving as the acting state conservationist for the next couple Ivan Dozier of weeks. Dozier has held several field office positions and state leadership roles for the former Soil Conservation Service as well as NRCS. Gradle, originally from Westmont in DuPage County, became Illinois’ ninth state conservationist in 1997. A University of Illinois graduate, Gradle had served as an area conservationist in California where he oversaw comprehen-
sive conservation planning. During his Illinois tenure, Gradle oversaw implementation of conservation programs under three farm bills of 1996, 2002, and 2008. He also served five secretaries of agriculture and five NRCS chiefs. Dozier said he will serve as acting state conservationist until he is succeeded by Jeff Zimprich, currently the assistant state conservationist for southwest Iowa, who also will serve in the “acting” capacity. Illinois joins New York, South Dakota, and Wyoming in a search for a new permanent state conservationist, according to Dozier. He speculated the Illinois post may be filled in three or four months. Dozier said he will return to his position as assistant state conservationist for programs. In the interim, Dozier said he and then Zimprich will oversee conservation efforts. “We’ll try to keep things rolling,” he added. Landowners will have more time — until Jan. 27 — to apply for conservation stewardship program (CSP) funding and make the cutoff for the first funding period, according to Dozier.
Gradle: Conservation work broader, more efficient The federal conservation agency isn’t the same nor does it have the same name it did when Bill Gradle began working there 34 years ago. The recently retired state conservationist told FarmWeek the changes within the former Soil Conservation Service are reflected in its current name — Natural Resources Conservation Service (NRCS). In the 1990s, the agency that had focused primarily on soil conservation also started working on water quality, wildlife habitat, and other resources as well as land uses. “Fifteen years ago, we (in Illinois) weren’t working on forestland, but we are now,” he said of his 1997 arrival as Illinois state conservationist. Along with a broader focus, the agency began offering more programs to landowners and farmers. “When I first started with the agency, we had one conservation program, ACP (agriculture conservation program),” Gradle said. Over the years, that number grew to about 17, he added. Conservation efforts may have expanded, but NRCS and Illinois farmers didn’t lose sight of soil conservation. “There has been a dramatic reduction in the soil lost over the years — tons upon tons (have been saved),” Gradle said. “It came about due to the adoption of no-till systems; the producers made it happen, we supplied technical assistance.” Technology, especially computers, has enabled NRCS staff to do more conservation work more efficiently and made
information more accessible, Gradle pointed out. “Today, all our soils are digitized, and people who use that information have access to it,” Gradle said. “We have fewer people than when I first started here, and we are doing more work.” Illinois NRCS’ accomplishments were possible
Conservation Districts, and Farm Bureau and other organizations, Gradle said. Every state doesn’t have such effective cooperation, he added. “No one agency can go out and get it done alone. We’ve made some real inroads,” Gradle said. “We have a good working relationship to get
‘There has been a dramatic reduction in the soil lost over the years – tons upon tons (have been saved). ’ — Bill Gradle Retired state conservationist
Feb. 8 conference
Wind farm zoning remains local challenge
How to go about dismancounties, Loomis noted. tling wind turbines that have Recently Ogle County extendoutlived their usefulness pres- ed its wind farm moratorium ents challenges for county and to the end of February when local officials in parts of Illithe county board may vote on nois, said David Loomis, revised ordinances. The coundirector of the Center for ty’s ban has been in place Renewable Energy at Illinois since April 2010. State University (ISU). As of July 2011, 45 coun“County boards and devel- ties regulate large-scale wind opers are struggling to get an projects as part of their zonagreement to ensure money ing codes, six counties have will be available stand-alone zonwhen the turing ordinances FarmWeekNow.com bines are torn for large-scale To register for the upcoming wind projects, down,” wind energy conference, visit and 11 counties Loomis said. FarmWeekNow.com. Decomhave zoning missioning that doesn’t and other wind regulate wind energy issues will be discussed projects. The remaining counFeb. 8 at a Siting, Zoning, and ties don’t have zoning. Taxing of Wind Farms ConConference topics will ference in the Marriott Hotel include the best practices of and Conference Center, Norcounty and zoning boards, mal. The conference, which is decommissioning, county geared toward county and ordinance provisions, tax local officials and employees, issues, and the impact of will be hosted by the Illinois taller turbine towers and other Wind Working Group. new technology on health and Statewide commercial wind safety issues. A pre-conferfarm standards are a legislaence session will be offered tive priority for the Illinois for participants who are new Farm Bureau after delegates to wind farm issues. passed new policy at the IFB The advance registration annual meeting. IFB will seek fee is $40 for government to include decommissioning employees and county board funding in the standards. and zoning board members, During the conference, and $100 for all other particiLoomis said he will discuss pants. On Jan. 30, the rates the true cost of decommiswill increase to $60 and $125, sioning wind turbines based respectively. on research and studies. He Online registration and the also has explored decommisagenda are available at sioning funding mechanisms {www.RenewableEnergy.ilstu. used in other states. In addiedu} or by calling the Renewtion, an expert panel will disable Energy Center at 309cuss decommissioning issues 438-7919, or making a request in Illinois. via e-mail at RenewableEnerZoning ordinances are gy@ilstu.edu. — Kay Shipanother challenge in several man
Schools sought for energy ed program because of the quality of its people, he added. More frequently, the work of those employees involves coping with invasive species of plants and insects, both of which have become a more serious problem, in Gradle’s opinion. For example, NRCS is applying practices to help eradicate invasive plants in Southern Illinois’ Shawnee National Forest area, Gradle said. The agency wants to help private landowners and the U.S. Forest Service reduce the potential of invasive plants spreading from public to private land or vice versa, he explained. Illinois’ conservation efforts have made strides because of the strong partnerships and cooperation among NRCS and other agencies, Soil and Water
together and talk about common goals and objectives.” Gradle said he expects NRCS and conservation programs to continue changing. One change may be more streamlining of programs. For example, three or four conservation easement programs may be combined into a single program, he said, or several costshare programs may be bundled into one program. No matter how conservation practices are implemented, Gradle said he believes the core idea behind them — conserving resources — is valued by the public. “I think the idea of conservation — people are into it and understand it — to sustain our resources for future generations,” he concluded. — Kay Shipman
Illinois Wind for Schools, a new education program, is seeking public school teachers to integrate wind energy into middle and high school classes for the 2012-2013 school year. The program is offered through a partnership of Western Illinois University’s Illinois Institute for Rural Affairs (IIRA) and department of engineering technology and Illinois State University’s Center for Renewable Energy and College of Education. The program offers curriculum, teacher development, onsite technical assistance, and instructional equipment to middle and high school teachers across Illinois. Three to five middle and/or high schools will be selected for each school year, according to Jolene Willis, IIRA wind
energy program coordinator, and Matt Aldeman, senior energy analyst for the ISU Center for Renewable Energy. Selected schools will receive training, curriculum, and equipment at no charge, thanks to a grant from the Illinois Department of Commerce and Economic Opportunity. Interested middle and high school teachers are encouraged to apply by March 1. Eligible applicants include those who teach math, science, agriculture, industrial technology, engineering, and related subjects. Applications will be available later this month online at {www.ILWFS.org}. For more information, contact Willis at 309-298-2835 or Aldeman at 309-438-1440.
FarmWeek Page 4 Monday, January 16, 2012
AFBF
Delegates shape policies to stem ‘hyper regulation’
ly concerned about new pesticide permits and EPA potential to regulate ag nutrients in the American Farm Bureau Federation deleUpper Mississippi River watershed. Such gates last week tightened policies in an effort excesses could “either add expense or limit to prevent federal regulators from further what I can do,” he said. tightening the screws on farmers. Health care regulations and financial Illinois Farm Bureau President Philip Nelreform will add to regulatory burdens in the son noted new policy revisions designed to next five to 10 years, Rubinstein said. Poskin, rein in the U.S. Environmental Protection an IFB director, cited labor-related risks Agency’s (EPA) “regulatory framework” and posed by the federal Occupational Safety and address concerns about U.S. Labor DepartHealth Administration and U.S. Department ment child labor guidelines. of Labor (see story below). At the same Rubinstein time, amid conurged farmers cerns about the to comment on Midwest rules ‘When the federal government exercis- proposed impact of Fedand serve on eral Emergency es its authority, it can send you to jail. federal, state, Management We are all one regulation away from and local adviAgency polisory panels being out of business.’ cies, IFB won that draft and support for review reguladesignating the tions. He sees — Reed Rubinstein producers U.S. Army U.S. Chamber of Commerce Corps of Engiincreasingly filneers the federing lawsuits to al lead in flood head off burmanagedensome new ment/“flood rules. fight” activities. He also sees Earlier in the week at the meeting, U.S. value in publicizing regulations, such as a Chamber of Commerce Senior Counsel Reed recent EPA plan to regulate spilled milk under Rubinstein addressed the perils of “hyper reg- the federal Spill Prevention, Control, and ulation.” Countermeasures program. EPA backed off “When the federal government exercises its when the plan was brought to public attenauthority, it can send you to jail,” Rubinstein tion. warned. “We are all one regulation away from Ag Secretary Tom Vilsack told farmers he being out of business.” would “continue to listen and to ensure regIncreasingly, EPA is emphasizing ag “susulators understand the full impact on farmtainability” in regulatory programs, based on ers ... of rules and regulations as they are purported public concerns, he said. Rubinproposed and before they are finalized.” He stein noted internal EPA discussions about said he and EPA Administrator Lisa Jackson moving from science-supported, geographihave joined in listening sessions with ag cally based regulations to a “holistic” leaders. approach which considers social issues. “We worked together to assure producers Ashkum producer Randy Poskin is especial- that EPA never intended to regulate farm dust BY MARTIN ROSS FarmWeek
Above: Illinois Farm Bureau 2011 Young Leader Achievement Award winners Kirk and Stephanie Liefer of Randolph County were runnersup for American Far m Bureau Federation’s 2012 Young Farmers and Ranchers Achievement Award, presented last week in Honolulu. Left: Illinois’ Katie Pratt was in the final four of AFBF’s Young Farmer Discussion Meet. Pratt will receive a Case IH Farmall 55A, a $5,000 savings bond, and a Stihl Farm Boss chainsaw, while the Liefers will receive a Case IH Farmall 65A, a $5,000 savings bond, and a STIHL chainsaw. (Photos by Ken Kashian)
Vilsack seeks labor ‘conversation,’ fix for ‘broken’ immigration system Ag Secretary Tom Vilsack last week recognized dual farm workforce challenges, offering to serve as an intermediary for farmers and the U.S. Department of Labor (DOL) and scolding Congress for failing to take on immigration issues. Amid flaws in the federal H-2A ag guest worker visa program and bipartisan gridlock over immigration reform, delegates at American Farm Bureau Federation’s (AFBF) annual meeting urged creation of a new ag visa that would be “portable” (allowing documented workers to go where needed) and help sectors such as dairy that require year-round workers. They also favored shifting H-2A administration from DOL to USDA, and rejected the idea of giving states authority to enforce their
own immigration standards. Michigan grower Ben LaCross argued that would “give Congress an easy out.” “The immigration system in this country is broken,” Vilsack told FarmWeek at the Honolulu meeting. “Everybody knows it. What we need, basically, is for Congress to take this problem and solve it, to somehow get over this partisan divide that seems to make it difficult to do anything.” He suggested 50 to 75 percent of U.S.-produced food “is touched at some point by immigrant hands” — “When you have a broken system, you’re putting all of that at risk.” But not all delegates agreed on how to fix that system. Delegates supported allowing cooperating farmers to apply jointly for guest workers, enabling workers to
move between farms without both employers sharing legal liability for workers when they are on the other’s premises. They opposed mandatory use of electronic worker verification until an “acceptable” ag worker program is in place. But Colorado’s Don Shawcroft suggested a program that allows authorization for workers “not authorized currently” leaves the door open “for illegal workers to suddenly become legal.” That policy language nonetheless was retained. Utah’s Leland Hogan argued passage of new state immigration laws might give Washington “the opportunity to get something going.” But Michigan’s Wayne Wood warned that “when states move ahead, they empower local authori-
ties,” possibly with negative consequences. Texas’ Richard Cortese deemed state authority crucial to curbing a runaway regional problem. “We have serious problems on the border that are endangering our citizens,” he said. Meanwhile, Vilsack acknowledged concerns about delegate-opposed DOL ag “child labor” proposals that could place new limits on youth employment for a range of chores outside of their parents’ operations. AFBF President Bob Stallman warned DOL overregulation would “strip our ability to give our kids a hands-on ag education.” Vilsack offered to help facilitate “a conversation” between DOL and producer groups affected by proposals now under Labor Depart-
‘What we need, basically, is for Congress to take this problem and solve it.’ — Tom Vilsack U.S. Secretary of Agriculture
ment review. “This particular rule goes beyond the obvious aspect of the rule itself,” Vilsack said. “It goes to a value system that is very, very central to existence in rural communities — the ability of parents and grandparents and family members to transfer and convey the value of the reward of hard work.” — Martin Ross
Page 5 Monday, January 16, 2012 FarmWeek
AFBF
AFBF analyst: ‘50-50’ farm bill shot poses bad odds BY MARTIN ROSS FarmWeek
Given the likelihood federal budget pressures will only continue to intensify, pushing the 2012 farm bill into 2013 is “not a very good idea,” according to American Farm Bureau Federation (AFBF) policy analyst Mary Kay Thatcher. Thatcher sees “maybe a 5050 chance” of Congress moving a farm bill this session amid election year dynamics and potentially protracted partisan debate over funding cuts in nutrition and other politically high-profile programs. “Unfortunately, we didn’t see the Congress doing much in the last year, and in an election year, it’s going to be even harder,” Thatcher told FarmWeek at AFBF’s annual meeting in Honolulu. “There are people who will want to push it off into 2013. But there will be less money in 2013 to write it in than in 2012, so that’s not a good idea for us. “I expect nutrition programs will be one of the biggest impediments to finishing this farm bill in 2012. You’re going to have a lot of disagreement between people who think some cuts can be made in nutrition, and others who say, ‘No, we can’t take anything at all.’”
Thatcher was unsure whether Congress will be “content” with the $23 billion in 10-year cuts submitted by bipartisan House and Senate ag leaders as part of a failed congressional “super committee” deficit reduction plan. Some lawmakers have supported as much as $30 billion to $50 billion in long-term ag cuts, and “I’m sure they’ll be back again,” she said. Ag committees offered to end direct payments in exchange for bolstering crop insurance and farm revenue protections, but Thatcher notes continued efforts to set new annual payment or income limits for remaining programs. A recent Senate proposal to eliminate subsidies for those with annual adjusted gross annual incomes above $1 million failed, but the concept had stronger-than-expected, cross-regional support. And Congress may not be done with crop insurance spending: The cost of federal premium subsidies grew from $4.7 billion in 2010 to $7 billion in 2011, and new yield trend adjustment options and corn and soybean premium reratings could further boost premium support this season. That could make insurance
a target for added ag cuts, as the only “low-hanging fruit” left to pluck, Thatcher said. Further, environmental and sporting groups may seek to link conservation compliance to crop insurance now that direct payments face extinction. “You could get in trouble one year and be out of compliance and lose your crop insurance,” eliminating a crucial risk management tool and possibly endangering farm credit, Thatcher advised. At the same time, she sees pressure to extend “food stamp” and other nutrition benefits as the economy continues to struggle. Such programs account for 76 percent of a total $911 billion in 10-year farm bill spending, and roughly one in seven Americans currently receives food stamp benefits. “The nutrition community went more than nuts” over the ag committees’ fall proposal for a relatively minor cut in nutrition program administration funding, Thatcher said. “We don’t want to take food out of the hungry mouths of babes,” she stressed. “But we do want to make sure that if there’s some fraud in the program, we can capture that savings, just like we’re capturing savings in the (farm bill) commodity title and the conservation title.”
AFBF
Continued from page 1 future debt reduction. According to new policy, new revenue protections should reduce program complexity while allowing producers the flexibility to “plant in response to market demand.” AFBF will lobby for continued conservation funding necessary for farmers to comply with environmental regulations, and preservation of current “marketing assistance” (commodity loan) programs. Delegates approved IFB provisions urging that marketing assistance programs offer “loan rates established to better reflect market values.” Farm programs would be based on planted rather than historic acres, and any farm income means testing must be based on net rather than gross income, accounting for farm costs, delegates decreed. AFBF proposes to extend program payment eligibility to farms with fewer than 10 base acres. Members from across the U.S. attempted to extend the specialty crop safety net through an emphasis on basic research, pest controls, food safety, produce-friendly nutrition programs, marketing and promotion, and “investment in competition and sustainability.” Delegates recognized the political pitfalls of promoting a range of tailored regional farm programs. Instead, they fine-tuned crop insurance policy to safeguard irrigators and specialty crop, livestock, and tree producers and backed a flood insurance program for stored grain. They opposed tying conservation compliance to crop insurance. Ag Secretary Tom Vilsack recognized the importance of options for “full utilization of risk management tools” and efforts to expand available commodities coverages. “And there does need to be a revenue protection program with some method that provides the protection to producers when they need it the most,” he told reporters in Hawaii. “I’m concerned about this because of the high input costs associated with many of these crops and the fact that we have operations that have only one or two crops being planted, as opposed to 30 or 40 years ago, when we had six or seven. “That combination creates a circumstance where if you have one tough year, it can take you under. We want to make sure (revenue) relief is what we need to get through a tough year and is available to (farmers) when they need it.”
Japanese, Chinese ‘participation’ key to Asian potential Asia appears riper than ever for U.S. ag sales, especially if China and Japan emerge from the sidelines. That’s according to William Westman, vice president for international trade with the American Meat Institute, who sees increased opportunity for U.S. producers in China and other key Asian markets this year. U.S. participation in ongoing Trans-Pacific Partnership (TPP) talks could even prove a “game changer,” he told farmers at American Farm Bureau Federation’s annual meeting in Hawaii.
The TPP’s goal is to spur trade and investment among partner countries, promote innovation and economic growth, and support job creation and retention.” President Obama and leaders from Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam hope to complete a TPP agreement this year. The TPP offers “an excellent opportunity for us in the Asian region,” given the lack of progress to date in World Trade Organization (WTO) Doha Round multi-
Farmers sue former MF Global chief Montana farmers last week filed a class action lawsuit against former New Jersey Gov. Jon Corzine, charging that his failed financial firm (MF Global) stole millions of dollars from its accounts to cover its debts. MF Global last Halloween filed for bankruptcy, and Corzine resigned as chairman of MF Global shortly thereafter. It was the eighth-largest bankruptcy filing in U.S. history. The lawsuit was filed on behalf of 38,000 customers, including wheat farmers and cattle ranchers who hedged their commodity prices by placing millions in MF Global accounts that were supposed to be segregated and secure. The amount of customer funds that has not been accounted for since the bankruptcy filing has been estimated as high as $1.2 billion. The lawsuit alleges MF Global made a series of bad investments, particularly in European debt, and siphoned funds withdrawn from segregated client accounts to cover itself.
lateral trade talks, Westman said. He sees the meeting of eastern and western interests providing an ideal venue to address import tariff and phytosanitary (product health and safety) concerns. TPP participants include three nations already engaged in free trade agreements (FTAs) with the U.S., and Westman sees potential for four more FTAs emerging from the partnership. If Japan comes on board, the TPP offers “an immediate opportunity for us to normalize some trade issues we have with them,” he said. “The big issue for us right now is Japan, and how that’s going to proceed,” Westman told producers. “If Japan comes into the club, that really is a game changer, I think, in terms of opportunities for us.” Last week, members of Japan’s parliament met with USA Rice representatives to exchange views on the TPP. While Japan’s prime minister has said his country would seek to enter the TPP, Japanese ag, medical, and financial services interests are seeking exemptions
from the TPP process. Meanwhile, Westman notes “tremendous opportunities in China,” where an emerging middle class is demanding more protein and high-quality foods. China is starting to employ
U.S. “just can’t get it into the market.” Some frozen beef is moving in through other foreign channels, but Westman said the Chinese government is “not that concerned about beef ” — pork and poultry
‘If Japan comes into the club, that really is a game changer.’ — William Westman American Meat Institute
its $3-plus trillion in foreign exchange reserves, but its ag production isn’t keeping pace with a growing population, and the country is increasingly dependent on imports. U.S. trade with China is up more than 1,000 percent since 2002, he related. But it remains “one of the world’s most challenging markets,” Westman advised. For example, he noted Chinese consumers and industry want U.S. beef, citing high demand especially from China’s “five-star” hotels. But he reported the
production are deemed more crucial to China’s economy and thus are the focus of official investment. The solution to the Chinese challenge, in Westman’s view, is greater engagement with the global trade community. “We would like (China) to be part of the WTO process, particularly for science-based, decision-making, sciencebased rules,” he said. “We need them to participate with us and our trading partners to agree on science as the basis of trade.” — Martin Ross
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cOmmODiTiEs
Higher crop production estimates surprise traders BY DANIEL GRANT FarmWeek
Corn and soybean harvest ended months ago in most states, but the size of the crops managed to grow last week, causing prices to shrink. USDA surprised many traders Thursday with the release of its annual crop production report that raised final yield and production numbers for corn and beans.
FarmWeekNow.com Go to FarmWeekNow.com to view complete details of recent USDA crop reports.
U.S. corn production was pegged at 12.4 billion bushels, up 48 million bushels from the November estimate, while soybean production was estimated at 3.06 billion bushels, which also was up slightly from the previous estimate. Final average yields in the U.S. for 2011 are 147.2 bushels per acre for corn, up a half bushel from the November estimate, and 41.5 bushels per acre for beans, up two-tenths of a bushel from the previous estimate. “The numbers are quite negative compared to trade expectations,” Terry Roggensack, market analyst with the Hightower Report, said during a teleconference hosted by the CME Group. “The trade was
looking for bullish numbers for corn, but we didn’t get that. It will trigger a lot of liquidation selling.” The corn production estimate increased due to the higher yield projection plus an additional 45,000 harvested acres in the final report. Final yield estimates in Illinois were raised by one bushel per acre for corn and beans compared to the November estimates. The state’s corn yield for 2011 is 157 bushels per acre, the same as last year but down 17 bushels from 2009, while the soybean yield this year averaged 47 bushels, down from a record-high in 2010 of 51.5 bushels, according to USDA. “It was a big surprise
(USDA) raised yields and didn’t lower yields,” Roggensack said. “The production numbers also are higher than expected.” USDA lowered ending stocks by 2 million bushels for corn and 8 million bushels for wheat, but at 846 million and 870 million total bushels, respectively, ending stocks also came in
above trade expectations. Soybean ending stocks were raised 45 million bushels to 275 million bushels. “That (higher ending stocks of soybeans) can’t be positive for the market,” said Jack Scoville, analyst with The Price Futures Group. As a result of the new figures, USDA lowered its 2011-
12 season average price estimates by 25 cents per bushel for beans, 20 cents for corn, and a dime for wheat. The analysts projected a bearish outlook for crop prices near-term with a chance for rallies prior to spring planting in the U.S. “The market focus will turn back to weather in Argentina and Brazil (which recently received some rain but generally remain dry),” Roggensack said. “If there’s no shift in the weather pattern in South America, we can have tightness develop (in crop supplies) as we work through the season.” USDA last week trimmed its corn production estimate for Argentina by about 117 million bushels.
Return estimates favor corn over beans — for now Crop return projections for 2012 once again favor corn over soybeans in Illinois, particularly north of Interstate 70. But the price relationship could tighten and even change if corn prices fall or if input costs, particularly nitrogen fertilizer, continue to escalate, according to Gary Schnitkey, University of Illinois Extension farm management specialist. “We’re shifting to more corn. The trend is most pronounced in Northern Illinois,”
Schnitkey said last week at the U of I Corn and Soybean Classic in Springfield. “The reason for that is profits (driven by yield differences).” Average corn yields divided by soybean yields in Illinois have increased from 2.92 (1976-88) and 3.12 (19892000) to 3.44 in the most recent decade (2000-10). Corn returns as a result averaged about $28 more per acre than soybeans from 2001 to 2010, although there were three years during the decade
(2002, ’05, and ’10) in which average bean returns were higher than corn. More recently, corn returns from 2006 to 2010 averaged about $60 per acre more than soybeans. “Current prices favor corn more than beans,” Schnitkey said. “The market is still telling us we need more corn.” And farmers are projected to respond by planting more corn this year, as long as the weather permits and seed availability is adequate. A national survey of 1,350 farmers conducted by Farm Futures magazine this month predicted U.S. farmers this spring will plant 93.6 million acres of corn, up 1.8 percent from last year’s 91.9 million acres, and slightly fewer soybeans (74.9 million acres). “Corn remains the most profitable crop for Midwest farmers, but lower prices could bring less expansion,” said Bryce Knorr, who conducted the Farm Futures survey. Analysts last week said the
market likely will continue to push for more corn in coming months despite a bearish USDA crop report in which 2011 final production numbers were higher than expected. “Overall, this does not change the outlook for increased planted corn acreage this year,” said Terry Roggensack, market analyst with the Hightower Report. The price relationship could change in the future, though, according to Schnitkey. “Short-term prices favor corn more than long-term (prices),” said Schnitkey, who predicted corn prices this year could average $5.50 per bushel but long-term the average may be closer to $4.50. “And nitrogen prices have to come down for us to continue to go to more intensive corn systems.” More nitrogen production capacity is being built around the world, which could ease fertilizer prices long-term, Schnitkey added. — Daniel Grant
DATEBOOK Jan. 17 U of I corn and soybean classic, Kishwaukee College, Malta. Jan. 18 U of I corn and soybean classic, I Wireless Center, Moline. Jan. 19 U of I corn and soybean classic, Holiday Inn, Quincy. Jan. 23 Tillage seminar, Rolland Lewis Community building, Mt. Vernon. On-the-Road seminar, 10 a.m. Winnebago County Farm Bureau, Rockford. On-the-Road seminar, 1:30 p.m. Pearl City fire station. Call 815-232-3186. Jan. 24 Tillage seminar, Illinois Department of Agriculture building, fairgrounds, Springfield. On-the-Road seminar, 9:30 a.m. Menard County Farm Bureau, Petersburg. On-the-Road seminar, 2 p.m. Mason County Farm Bureau, Havana.
Page 7 Monday, January 16, 2012 FarmWeek
OUTREACH
IFF seeks to enhance outreach on local level BY KAY SHIPMAN FarmWeek
Chicago isn’t the only city with consumers who want more information about how their food is produced.
That’s why in 2012 the Illinois Farm Families (IFF) group hopes to spread across the state more conversations between consumers and farmers. IFF is a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau. “Ever y county in the state has people removed from the far m. Ever ybody can lear n from far mers,” said Carla Mudd, IFF coordinator and IFB man-
ag er of consumer communications. This year, IFB is encouraging county Farm Bureaus to work with local commodity organizations on consumer outreach and IFF activities, according to Lori Laughlin, IFB director of issue management. Several proposals for local programs already have surfaced. The west-central counties in IFB District 10 are planning a meeting
FarmWeekNow.com For additional details on Illinois Farm Families, go to FarmWeekNow.com.
between area farm and urban mothers, according to Mudd. Stephenson County Farm Bureau wants to start a local “field mom” program. The IFF field mom program involves Chicago-area mothers who have toured farms and learned about farming.
Carroll County Farm Bureau is interested in starting a local farm families group, while Champaign County Farm Bureau will offer spokesperson training for its members. Mudd encouraged county Farm Bureau leaders and managers to contact her about potential IFF programs or activities. On a state level, IFF continues to build on the efforts of its first year of programs and outreach. New information is being posted on the IFF website at {www.watchusgrow.org}. This includes new consumer questions and answers. IFF also has developed new radio public service announcements that give an overview of the program and promote website and consumers’ opportunity to submit questions. The announcements will be aired on RFD Radio during the first half of the year.
State offers new tools for locally grown sector Illinois wants to build on its agricultural economic engine by offering a new business guide book and new website to enhance markets for locally grown foods. During last week’s Illinois Specialty Crops, Agritourism, and Organic Conference, Warren Ribley, director of the Illinois Department of Commerce and Economic Opportunity (DCEO), announced the release of a business guide for developing “food hubs” and the creation of a grower marketing website. A food hub is a centrally located business facility for aggregation, storage, processing, distribution, and marketing of food grown within a local or regional area.
“We have a passion for economic growth,” Ribley said. Expanded production of locally grown food represents economic opportunity in the state, he added. To reduce “bottlenecks” for locally grown foods, DCEO worked with the Illinois Department of Agriculture, the University of Illinois, USDA, Farm Bureau, FamilyFarmed.org, and others, Ribley said. An apparent bottleneck is a lack of a food hub in the state. The 55-page guide book, “Building Successful Food Hubs,” outlines strategies that were adapted for Illinois but based on successful food hubs in other states,
Ribley said. The state’s new online tool is the iSupply website {http://isupply.illinois.edu/}. The website’s purpose is to inform farmers about how to enter different markets, including retail, restaurants, wholesale, processors, institutions, and direct sales. Information is divided among seven categories: grains, cereals, and oilseeds; fruits and vegetables; honey and maple syrup; livestock and poultry; dairy; eggs; and organic. Ribley described the iSupply website as a nice complement to the 9-year-old online marketing program MarketMaker. The website is {www.marketmaker.uiuc.edu}. — Kay Shipman
Chef Michael McGreal, head of Joliet Junior College’s culinary department, demonstrates gourmet meals made with locally produced foods during last week’s Illinois Specialty Crops, Agritourism, and Organic Conference in Springfield. McGreal prepared a stuffed chicken breast and a stuffed pork tenderloin, both made using locally produced poultry and meat. (Photo by Cyndi Cook)
Chef whips up support for locally grown foods With his skillets sizzling and delicious aromas wafting, Chef Michael McGreal of Joliet Junior College (JJC) had farmers eating out of his hands last week. However, the respect was mutual. “I see what you do to produce the things in order for me to change someone’s life (with healthy food),” McGreal told the specialty growers and others watching his demonstration during the Illinois Specialty Crops, Agritourism, and Organic Conference in Springfield. The head of JJC’s awardwinning culinary department, McGreal is a proponent of using locally grown foods in his dishes, and he is teaching his students to follow his lead. “A majority of farmers are so willing to grow for you if they know they can count on you,” McGreal said
he tells his students. Cooking with locally grown foods means ingredients are fresher and more nutritious and it also supports local farmers and the local economy, McGreal told FarmWeek. Budding chefs who use locally grown ingredients need to learn to adapt to Illinois’ seasonal production, McGreal acknowledged. In his own chicken dish, McGreal said he incorporates fresh fruit when it is in season and switches to dried fruit at other times. McGreal told the farmers that they are at the heart of the top two restaurant and dining trends: cooking with local and sustainable meats and seafood and local and sustainable produce. “Chefs in America are dying to get your” locally grown food, McGreal said. “We want it and we want to support local farmers.” — Kay Shipman
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FarmWeek Page 10 Monday, January 16, 2012
specialty programs
Opportunities to scale up sales exist for specialty crop growers DANIEL GRANT FarmWeek
History has shown crop farmers in Illinois can make good money growing more than just corn, soybeans, and wheat. Demand growth for local foods around the state and country is creating opportunities to scale up production of numerous specialty crops, ranging from tomatoes and sweet corn to potatoes and asparagus. University of Illinois Extension educators and specialty crop growers discussed the situation last week during the Illinois Specialty Crops, Agritourism, and Organic Conference in Springfield hosted by the Illinois Specialty Growers Association. “The local food portion (of total food sales nationwide) is very small, but the opportunities are tremendous and rapidly expanding,” said John Pike, U of I Extension economic development educator. Mike Roegge, a U of I Extension local food systems and small farms educator, has seen the trend take shape at the ground level. Roegge and his
family operate Mill Creek Farm in Quincy, which has grown from a small pumpkin and strawberry patch in the mid1990s to a major supplier of fresh fruit and vegetables in the Quincy area. “Demand for locally raised products has never been better,” Roegge said. In fact, Mill Creek Farm in recent years maxed out its retail sales opportunities, so it expanded into wholesale and last year sold 31 percent of its sweet corn and 26 percent of its asparagus into the wholesale market. “I want to grow, so we started wholesaling,” Roegge said. A key to increasing specialty crop sales, according to Roegge, is to talk to customers, wholesalers, and distributors first and then plant different maturities of the most popular items to extend the season. Mill Creek Farm last year produced asparagus, greens, strawberries, sweet corn, tomatoes, green beans, and cucumbers. The Roegges also capitalized on agritourism demand by growing and marketing pumpkins and offering a corn maze.
“We’ve adapted (to consumer demand) and we’re continually evolving,” he said. “We ask consumers what they want and we grow it.” Jerry Thurston of Spring Valley Farm and Vineyard in Pulaski got back into commercial vegetable production in 2010 and soon expanded the business due to strong demand. “We were quickly overwhelmed with the amount of vegetables we were able to sell,” Thurston said. Thurston recommended producers make sure they have the infrastructure capabilities and land suited for a particular crop before entering or expanding in specialty crop production. Large-scale operations also should consider installing irrigation, a packing house, a greenhouse, and refrigerated storage and trucks. “Stores want a consistent supply of quality produce,” he noted. The top limiting factor of expansion now at Spring Valley Farm is a lack of a large, skilled workforce. The farm last year maintained 10 to 12 positions
but employed a total of 33 people to get through the season, Thurston noted. Adam DeGroot of DeGroot’s Vegetable Farm in St. Anne also noted that fewer customers are interested in picking their own produce than in the past. “We’ve adapted by trying to
diversify ourselves within our customer base,” DeGroot said. DeGroot’s Vegetable Farm markets potatoes, peppers, pumpkins, and other produce to food service, retailers, distributors, and processors. The DeGroots also continue to operate a farm stand for direct sales.
IALP applications available
Applications are now being accepted for the Illinois Agricultural Leadership Program (IALP) class of 2014. It will be the 16th class to complete the leadership education and training and will begin in September 2012. Founded in 1981, the IALP is a two-year series of leadership seminars that brings participants face-to-face with leading educators, innovators, business practitioners, and government representatives. The mission of the program is to develop knowledgeable and effective leaders to become policy and decision-makers for the agricultural industry. Eligibility for the program includes the following parameters: • Men and women ages 25-49 (as of the date of application); • Full-time employment in production agriculture or agrirelated occupations; • U.S. citizen or permanent resident, and an Illinois resident; • Demonstrated leadership qualities and potential; • Commitment to attend all seminars, including travel seminars. Each class is limited to a maximum of 30 participants. Individuals are selected based on demonstrated leadership potential, commitment to leadership, and for their diversity to represent the agricultural industry. Applications will be accepted through March 31, but applicants should consider applying early. Interviews of all eligible candidates will be conducted in the summer of 2012, and all applicants will be notified as soon as possible following final selection. Application materials must be submitted online with the exception of the Employer and Spouse Consent Forms which must be downloaded from the web, filled out, and mailed to the program office. The applications are now available at the bottom left corner of the front page of the website at {www.agleadership.org}.
Page 11 Monday, January 16, 2012 FarmWeek
FB IN ACTION
Tele-institute to offer local government series The University of Illinois Extension Local Government Information & Education Network (LGIEN) and the Illinois Association of County Board Members and Commissioners (IACBMC) will offer a local government education series on issues impacting counties and communities across Illinois. The education series will be broadcast over a statewide audio-teleconference system through U of I Extension offices and other partnering locations. During early 2012, there will be four monthly sessions offered starting Thursday and ending April 19. The sessions will occur on the third Thursday of each month from 3 to 5 p.m. Thursday’s session will cover privatization-intergovernmental agreements. This session will cover who uses such agreements, how the tools are being used, and advantages and disadvantages for local governments. On Feb. 16, the topic will be the importance of broadband for communities and how e-government is changing how services are provided. On March 15, participants will discuss obstacles and opportunities related to special structure assessments. Many county and township assessors throughout the state face challenges in assessing special structures within their boundaries. Public assessors and private individuals will discuss the best assessment practices. They will explore the state law that governs assessing of special structures and how to create winwin situations for governments and the private businesses involved. The final session April 19 will focus on siting and permitting of wind farms. Illinois has developed county and municipal codes that establish jurisdiction over wind farm
development and regulation. Participants who are enrolled in the Certified County Officials (CCO) program may receive two hours of general credit for each session they attend; however, an individual does not need to be an elected official to attend. The sessions are open to the public. Interested persons may register online at {http://web.extension.illinois.edu/fmpt/} or send an email to Kathie Brown, Extension educator community and economic development, at brownlk@illinois.edu. Her telephone number is 309-2559189.
HAWAIIAN REUNION
It was a reunion of sorts at the American Farm Bureau Federation (AFBF) annual meeting in Honolulu as former Morris resident Kay Shinn, left, now a Floridian, visited Grundy County Farm Bureau’s Liberty 5K Run/Walk County Activities of Excellence booth on the AFBF exhibit floor. The July 3 event was designed to raise awareness of Operation MOMs Cookies, an organization that helps families of military service men and women, and raise funds for the county Farm Bureau’s foundation. Chatting with Shinn, from right, are Grundy County Farm Bureau manager Tasha Bunting and volunteers Grace, Cale, and Sarah Halpin. County program recognition also was extended to Kane, McLean, and Randolph County Farm Bureaus for their education and public information efforts (Photo by Martin Ross)
FarmWeek Page12 Monday, January 16, 2012
EmErging issuEs Risk management ‘never more important’
High volatility and ‘fierce’ acreage war is ahead
BY MARTIN ROSS FarmWeek
Solid risk management “has never been more important” for producers of the nation’s major commodities, given a range of key volatility factors for 2012, North Carolina State University Extension specialist Nicholas Piggott told producers at the American Farm Bureau Federation’s (AFBF) annual meeting. During AFBF’s crop outlook last week, the Australianborn economist anticipated “another fierce acreage-bidding war” this season. “This is fantastic for you farmers out there,” Piggott argued, citing producer reaction to strong market signals. However, “acreage is not unlimited,” and tight corn stocks and continued high prices heading into 2012 should translate to a significant
boost in corn acreage nationwide, likely at the expense of cotton or soybean production. “Unless the corn price comes down, which I doubt it will with the tight corn stocks, we’re going to need soybean prices to rally significantly to beat those (soybean-to-corn) acres back,” Piggott told FarmWeek. “I think the balance sheets will look stronger for corn.” Piggott sees growers weathering 2012 in good shape if they can manage anticipated high-price volatility, especially if they can sell their crops in the top third of the market. That suggests reliance on crop insurance to provide a “base,” informed use of options, and aggressive forward contracting of “small parcels” — ideally, crop increments of no more than 5 percent. “Volatility can be (the farmer’s) friend, as long as they’re not greedy,” he maintained. Piggott urged growers to spend more time on market-
ing their crops. Continued ethanol profitability also could lead to increased corn plantings, he said, especially if the biofuels industry can overcome regulatory and logistical obstacles and opposition from the small equipment sector to new 15 percent ethanol/gasoline blends. Hearty “E15” adoption could mean a 50 percent boost in ethanol market growth, Piggott projected. Other income variables include potential for export growth under new or continuing U.S. trade talks (“Under a free trade market, American farmers are going to prosper,” he said.) and a new farm bill debated by a largely urban Congress and influenced by record-high farm incomes. Ag prosperity “doesn’t mean its budgets should be cut,” Piggott said, emphasizing the need for future ag research funding to further boost crop productivity. The good news: Govern-
ment payments now constitute less than 10 percent of net farm income. Public perceptions of heavy farm program dependence “are simply not true,” and agriculture’s “an industry that’s standing on its own,” Piggott argued. “In ’09, ’10, and ’11, we
kept the lid on costs,” he said. “With that, combined with receipts, it looks like we’re now in a positive trend in net farm income moving forward. I expect this to continue. Demand doesn’t seem to be waning, even with the (crop) prices we’ve had.”
Don’t wait to register to vote in March primary election BY KAY SHIPMAN FarmWeek
Unregistered Illinois residents have about four weeks to register to vote in the March 20 primary election, but the state’s director of voter registration services advised people to take action now. “Don’t wait until the last minute. The sooner, the better,” Kyle Thomas with the Illinois State Board of Elections told FarmWeek. Not only will Illinoisans be voting in a presidential primary election, but they also will be voting in redrawn legislative districts. “We’re expecting to get a lot of questions,” Thomas said. While voter turnout traditionally is higher in a presidential primary election, Thomas said election officials are not expecting an Illinois turnout as large as the last presidential primary involving then-Sen. Barack Obama. Thomas advised Illinois residents to first check to see if they are registered to vote. That can be done either by contacting a local election authority or by going online to {www.elections.il.gov} and clicking on the voter’s tab at the top center of the page. Click on the “Am I registered to vote” bar and enter your first and last names and zip code. The information will include the voter’s polling place and has a space to learn the districts in which the voter will be voting. Someone not registered to vote has until Feb. 21 to complete standard voter registration. A voter registration form may be downloaded from {www.elections.il.gov} and must be completed and postmarked by Feb. 21. Voter registration may be completed at a local election authority office. Voters also may contact those authorities with questions about their current legislative districts. Thomas said individuals doing business, such as renewing a driver’s license, at a Department of Motor Vehicles (DMV) office also may register to vote; however, that registration option only will be offered as part of regular DMV business. Voters unable to register by Feb. 21 may register from Feb. 22 through March 13 during grace-period registration at a local election authority office. An individual would register to vote and then proceed to vote at that time, Thomas said.
Wheat Forum scheduled Feb. 10 The Illinois Wheat Association’s (IWA) annual Winter Wheat Forum will be Feb. 10 at Krieger’s/Holiday Inn Convention Center in Mt. Vernon. The forum, which aims to help Illinois wheat producers increase productivity and profitability, will feature a variety of attractions for producers and processors. Key topics for the event include profitability of wheat and double-crop beans, markets, management of wheat diseases, insect control in winter wheat, and wheat-drying systems. In addition to browsing a variety of exhibits, participants also will have the opportunity to attend the IWA annual meet-
ing, which will be held at the conclusion of the forum. Registration will begin at 8 a.m., with educational sessions beginning at 9 a.m. The forum will conclude at 3 p.m., with lunch provided to registered attendees. IWA members may register for the conference on site for $12 per person; the general public may attend for $20 per person. To receive more information about the Winter Wheat Forum, visit the IWA website {www.illinoiswheat.org} or contact Diane Handley, IWA executive secretary, at 309-557-3662. The forum is made possible through the support of the USDA Risk Management Agency.
Page 13 Monday, January 16, 2012 FarmWeek
from the counties
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ASS-MORGAN — The Marketing Committee will sponsor a market outlook program at 7 p.m. Tuesday, Jan. 24, at the Morgan County Extension office, Jacksonville. Dale Durchholz, AgriVisor Services market analyst, will be the speaker. Call the Farm Bureau office at 217-245-683 for more information. HRISTIAN — Farm Bureau will sponsor an ag outlook meeting at 6:30 p.m. Tuesday at Krieger’s, Taylorville. Dinner will be served. Panelists will include Curt Kimmel, Bates Commodities; Jacquie Voeks, Stewart Peterson Group; and Bill Mayer, Strategic Farm Marketing. Dave Dickey, WILL Radio, will moderate the panel. Call the Farm Bureau office at 217-8242940 for reservations or more information. EE — The application deadline for Lee County Farm Bureau Foundation “Books by the Bushel” program is Feb. 1. The foundation is giving “Books by the Bushel” to any organization that can benefit from a bushel basket of agricultural books. Applications are available on the website {www.leecfb.org}. Call the Farm Bureau office at 815857-3531 or e-mail
leecfb@comcast.net for more information. • Lee and Ogle County Farm Bureaus will sponsor a master grain contract seminar at 7 p.m. Wednesday, Feb. 8, at the Ogle County Farm Bureau office, Oregon. Jerry Quick, former Illinois Farm Bureau senior counsel, will be the speaker. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net by Tuesday, Jan. 31, for reservations or more information. • The Young Leaders will attend a Rockford IceHogs hockey game Saturday, Feb. 11. Tickets are $12. Call the Farm Bureau office at 8573531 or e-mail leecfb@comcast.net by Friday for reservations or more information. ONROE — The Mon-Clair County Corn Growers Association annual meeting will be at 6:30 p.m. Monday, Jan. 30, at Lou and Michelle’s, 405 Front St., Waterloo. U.S. Rep. Jerry Costello (D-Belleville) and Garry Niemeyer, National Corn Growers Association president, will be the speakers. Call the Farm Bureau office at 939-6197 by Monday, Jan. 23, for reservations or more information. EORIA — An on-theroad seminar will be at 9 a.m. Wednesday, Jan. 25, at the Farm Bureau office. Kevin Rund, Illinois Farm
Auction Calendar
Thurs., Jan. 26. 10 a.m. 165. Ac. Winnebago Co. ROCKFORD, IL. MGW. www.mgw.us.com Thurs., Jan. 26. 10 a.m. Peoria Co Land Auction. Ruth D. Claybaugh Trust B, ELMWOOD, IL. Cowser Auction and Farm Realty. www.illinoisauctioneers.org Thurs., Jan. 26. 10:30 a.m. Real Estate. Agracel, Inc., Robert Lafenhagen, SALEM, IL. Kleeman Auction & Appraisal Co. www.kleemanauction.com Fri., Jan. 27. 11 a.m. Greene County Land Auction. Estate of Josephine M. Hobson, CARROLLTON, IL. Moss Auctioneers. www.auctionzip.com Member #21727 Sat., Jan. 28. 9:30 a.m. Retirement Auction. Norval and Dorothy Sherley, MACEDONIA, IL. Jamie Scherrer Auction Co. www.jamiescherrerauction.com Sat., Jan. 28. 10 a.m. Farm machinery and Livestock eq. Gerald and Juanita Henry, SADORUS, IL. Stanfield Auction Co. www.stanfieldauction.com Sat., Jan. 28. 10 a.m. Kendall Co. Land Auction. Harold Olson Estate, MORRIS, IL. Black and Black. Tues., Jan. 31. 10 a.m. Warren Co Land Auction. John F. Gardner, Trustee, MONMOUTH, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Thurs., Feb. 2. 158 Ac. Kankakee. Soy Capital Ag Services. www.soycapitalag.com Fri., Feb. 3. 10 a.m. Land Auction Warren Co. John A. Taylor, ROSEVILLE, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Sat., Feb. 4. 9:30 a.m. Retirement Auction. Wright J. Cotter, GALATIA, IL. Jamie Scherrer Auction Co. www.jamiescherrerauction.com Sat., Feb. 4. 10:30 a.m. Land Auction. Ruby Nell Deckard, CAMARGO, IL. Gordon Hannagan Auction Co. www.gordyvilleusa.com Sat., Feb. 4. 10 a.m. Land Auction Randolph Co. WATERLOO, IL. BuyAFarm.com
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Mon., Jan. 16. 9 a.m. Mt. Erie Ruritan Farm Machinery Consignment Auction. MT. ERIE, IL. Mon., Jan. 16. 5:30 p.m. Mason Co. Land Auction. Dr. Henry W. Maxfield Trust, MASON CITY, IL. Luke Lee Gaule, Auctioneer. www.lukeleegaule.com Tues., Jan. 17. 10 a.m. Productive Farmland & Rolling Woodlands. LA PORTE, IN. Colliers Auction Services. www.IN.gov/idoa/surplus Thurs., Jan. 19. 10 a.m. Farm Machinery Auction. Norman and Jerry Lillpop, MACON, IL. Wm. Beck Auction & Realty. www.williambeckauctions.com Thurs., Jan. 19. 10 a.m. Farm Eq Auction. Steve Peddicord, MT. PULASKI, IL. Mike Maske Auction Service. Thurs., Jan. 19. 10 a.m. Productive Farmland & Rolling Woodlands. ANDERSON, IN. Colliers Auction Services. www.IN.gov/idoa/surplus Sat., Jan. 21. 10 a.m. Monroe Co Land Auction. WATERLOO, IL. BuyAFarm.com Sat., Jan. 21. 10 a.m. Farm auction. The Allen Farm, ADAIR, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com Sat., Jan. 21. 10 a.m. Woodford Co. Farmland. Roger Funk, EL PASO, IL. Terry Wilkey Auction Service. www.terrywilkey.com Mon., Jan. 23. 5:30 p.m. Farmland. Hilligoss Family, TUSCOLA, IL. Luke Lee Gaule, Auctioneer. www.lukeleegaule.com Tues., Jan. 24. 5:30 p.m. Farmland. Hausman 2009 Limited Partnership, SPRINGFIELD, IL. Luke Lee Gaule, Auctioneer and Farmland Solutions, Kent Kraft, Broker. www.lukeleegaule.com Wed., Jan. 25. Online Auctions. Big Iron. www.bigiron.com Wed., Jan. 25. 10 a.m. Knox Co Land Auction. William M. Swanson Estate, GALESBURG, IL. Van Adkisson Auction Service, LLC. www.biddersaandbuyers.com
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Bureau senior director of local government, will be the speaker. Call the Farm Bureau office for more information. • A crop insurance meeting will be at 9 a.m. Tuesday, Jan. 31, at the Farm Bureau office. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will review crop insurance options. T. CLAIR — The Mon-Clair County Corn Growers Association annual meeting will be at 6:30 p.m. Monday, Jan. 30, at Lou and Michelle’s, 405 Front St., Waterloo. U.S. Rep. Jerry Costello (D-Belleville) and Garry Niemeyer, National Corn Growers Association president, will be the speakers. Call the Farm Bureau office at 233-6800 by Monday, Jan. 23, for reservations or more information. TEPHENSON — An on-the-road seminar will be from 1:30 to 3:30 p.m. Monday, Jan. 23, at the Pearl City Fire Station. Call the Farm Bureau office at 815232-3186 for reservations or more information.
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• Farm Bureau will sponsor a bus trip to the “Gathering of the Green” John Deere event March 16 in Davenport, Iowa. Another bus trip to the John Deere Harvester Works, the newly redesigned John Deere Pavilion, and Kinze Manufacturing will be March 21. Call the Farm Bureau office at 815232-3186 or visit the website {www.stephensoncfb.org} for more information. • Farm Bureau will sponsor two bus trips. The first will be April 15 to Conklin’s Barn II Dinner Theater, Goodfield. The second will be June-12-13 to Shipshewana, Ind., Amish country. Call the Farm Bureau office at 815-232-3186 or visit the website {www.stephensoncfb.org} for more information. • Farm Bureau will sponsor a basic cardiopulmonary resuscitation class from 9 a.m. to 12:30 p.m. Saturday, March 10, at the Farm Bureau office. Call the Farm Bureau office at 815-232-3186 for reservations or more information. WINNEBAGO — Farm Bureau will sponsor an onthe-road seminar at 10 a.m. Monday, Jan. 23, at the Farm
Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will address federal motor vehicle safety regulations. Call the Farm Bureau office at 815-962-0653 or e-mail your reservation to wcfb@winnebagocfb.org. • A program on Camp Grant will be at 1:30 p.m. Wednesday, Jan. 25, at the Command Post Restaurant, Rockford. A lunch buffet will be served. The history of Camp Grant from its beginning in 1917 through its use as an induction and training center, a prisoner of war camp, and a medical training unit during World War II will be the program. Cost is $20. Call the Farm Bureau office at 815-962-0653 for reservations or more information. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 14 Monday, January 16, 2012
profitability
Farmers should use services of risk manager BY CLAYTON POPE
Most farmers would agree that selling their production each year is one of the most difficult challenges they face. Yet perhaps because of this difficulty, most also would agree that they probably Clayton Pope don’t spend enough time or effort on this challenge, and that they find themselves making the same mistakes year after year. Why is this, and can anything be done about it? I believe there are two primary reasons marketing is so difficult. First, farmers are, by definition, forced to speculate. As defined in Webster, “speculate” means to assume a business risk in hope of gain; especially to buy or sell in expectation of profiting from market fluctuations. Interestingly, this definition is amazingly similar to one definition of “market”: the business of buying and selling a specified commodity. Second, as if being cast into the role of a speculator isn’t hard enough, a farmer is typically extremely emotionally involved with his production. This is natural (maybe even unavoidable) considering that the farmer has worked extreme-
ly hard to produce the product, has exposed himself to considerable risk in doing so, and, in most cases, is dependent on his ability to successfully market it in order to provide for himself and his family. Of all the participants in the market, it is extremely unlikely that any of them are coming to the table with as much emotional baggage — and that is a distinct disadvantage for the farmer. Considering this, emo-
tions usually play too great a role in the decision-making process, and the very concepts that are most important to success are underemphasized. As for whether anything can be done about this, the answer is yes. Given the critical importance of risk management in today’s world, working with an outside risk management adviser makes sense for most operations. Not only is a farmer’s risk
extremely high, but the demands on his time probably have never been greater. Together, a farmer and his risk manager should focus on three areas of concentration in order to create an environment where successful marketing can occur. These key areas are: risk profile assessment — a farmer must define his financial and emotional ability to take on the various types of risk manage-
ment alternatives; money management — preservation of capital has to be the primary concern; and ongoing consideration of acceptable alternatives — by constantly evaluating various risk-vs.-reward scenarios, an optimal position of cash, futures, options, and hybrid cash grain contracts can be achieved.
BY DANIEL GRANT FarmWeek
of I Corn and Soybean Classic in Springfield advised farmers to remain calm, don’t overreact, and stick to solid agronomics.
there would be no more problems with corn-on-corn. But farmers still should expect a possible yield reduction of 5 to 10 percent in
with,” he said. “I don’t think there’s anything to suggest (farmers should boost nitrogen rates on corn-on-corn).” Some corn-on-corn last year exhibited symptoms of nitrogen deficiency, but much of that was due to the weather. “Whenever you have a lack of water, a lack of nitrogen comes with it” because nitrogen is pulled into the plant in water through the roots, Nafziger said. He also advised farmers to leave plant populations at levels for optimum yield potential. “I suggest you (farmers) don’t move populations in response (to recently low yields),” Nafziger said. “The limiting factor in 2011 was water, not the number of plants.” Corn-on-corn will continue to be necessary in Illinois as farmers in recent years planted about 12 million acres of corn and 9 million acres of beans, which means about a quarter of the corn crop must follow corn each year, he added.
Agronomist: Don’t overreact to lower corn-on-corn yields
Many Illinois farmers have experienced a significant yield drag in corn-on-corn fields the past two years. In fact, there were some reports last year in which corn-on-corn yields were 100 bushels per acre below corn following soybeans, according to Emerson Nafziger, University of Illinois Extension agronomist. “These (yield discrepancies last year) were some of the largest differences I’ve ever heard of,” said Nafziger, who has been an agronomist at the U of I for 30 years. “That kind of yield difference really hurts, especially at these prices.” So what should farmers do this year to try to fix the problem? Nafziger last week at the U
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head $47.00-$68.00 $59.00-$75.00 no longer reported This Week 96,725 *Eastern Corn Belt prices picked up at seller’s farm
Weighted Ave. Price $60.21 $72.26 by USDA Last Week 115,060
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $81.60 $80.02 $60.38 $59.21
Change 1.58 1.17
USDA five-state area slaughter cattle price Steers Heifers
Clayton Pope is manager of AgriVisor. His e-mail address is cpope@agrivisor.com.
(Thursday’s price) (Thursday’s price) Prev. week Change This week n/a 121.00 n/a n/a 121.79 n/a
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 $150.51 147.88 2.63
Lamb prices n/a
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 01-05-12 32.0 10.8 33.9 12-29-11 36.5 13.4 25.1 Last year 39.0 25.8 21.1 Season total 600.4 606.8 581.9 Previous season total 844.7 681.9 601.3 USDA projected total 1300 925 1600 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
‘The real problem in 2010 and ’11 was a lack of water during the critical grainfilling period.’ — Emerson Nafziger University of Illinois Extension agronomist
“The corn-following-corn system is not broken,” he said. “The real problem in 2010 and ’11 was a lack of water during the critical grain-filling period.” Nafziger noted most corn yields were down in Illinois the past two years as the average statewide yield in 2010 and 2011 was 157 bushels per acre compared to 174 bushels in 2009. Meanwhile, the introduction of Bt corn with rootworm protection may have lulled some producers into believing
corn-on-corn compared to corn-after-soybeans. What led to lower corn-oncorn yields (the past two years)? “We think it was stress and corn-on-corn just had more of it,” Nafziger said. He said farmers can look for ways to reduce stress on their corn-on-corn acres, but he advised them not to ramp up inputs in an attempt to boost yields. “More inputs are not the solution unless you weren’t putting enough on to begin
Wheat seedings increase nationwide, decline in Illinois
Wheat supplies should remain adequate in the near future, based on two USDA reports released last week. USDA in its wheat seedings report projected a 3 percent increase in the number of winter wheat acres planted in the U.S. last fall compared to the previous year. Meanwhile, USDA in its world ag supply and demand estimates report raised global wheat supplies by nearly 100 million bushels. “There is a sizable world crop of wheat,” Jerry Gidel, market analyst with Narms Futures Trading, said during a teleconference hosted by the CME Group. “And the numbers keep going up.” Overall, winter wheat seedings in the U.S. this year were projected to total 41.95 million acres compared to 40.65 million last year. “The trade was looking for a 300,000 to 400,000 (acre) increase, but instead, there was a substantial jump of more than 1 million acres,” said Gidel. Plantings of soft red wheat, which is grown in Illinois, declined, though — from 8.56 million acres a year ago to 8.37 million this year — as it is believed some producers may favor more corn acres this year. In Illinois, winter wheat seedings were projected at 660,000 acres, which is down from 800,000 last year but up significantly from
2009-10 when growers in the state planted a record-low 330,000 acres. The majority of the wheat crop in the state (81 percent) earlier this month was rated to be in good to excellent condition, with 17 percent fair, and just 2 percent poor. Elsewhere, some of the wheat crop may not make it to harvest, according to Gidel. “We have a long way to go before the wheat crop is in the bin,” he said. “We could see fewer harvested acres.” Weather challenges usually take some wheat fields out of production each year while a portion of the hard red wheat crop could be used for grazing livestock. “There could be a substantial amount of graze-out of hard red wheat,” Gidel said. “(Livestock producers) are very short on forage in the Southwest.” USDA last week raised projected wheat exports by 25 million bushels, but at the same time it cut feed and residual use of wheat by 15 million bushels and food use by 5 million bushels. Demand for wheat “basically ended up unchanged,” Gidel added. USDA lowered its season-average farm price estimate for wheat by a dime to a range of $6.95 to $7.45 per bushel. — Daniel Grant
Page 15 Monday, January 16, 2012 FarmWeek
PROFITABILITY Corn Strategy
C AS H ST RAT E GI S T
Wheat acreage may offer insight The biggest fundamental surprise in last week’s USDA numbers may have been the winter wheat planting intentions. Since 1988, the first USDA winter wheat planting estimate has come in below trade expectations. Not only did this year’s planting estimate come in above estimates, it was above each of the last two years as well. Still, the 41.947 million acres projected to be planted this year is well below the most recent high planting of 46.307 million acres in 2008. Despite the extremely dire moisture situation in the Southern Plains, hard red wheat planting increased a little more than 1.6 million acres to 30.10 million. The combined increase in Kansas, Oklahoma, and Texas accounted for 1.6 million acres of the increase. Other hard red states had either small increases, or small reductions. But most of those other states have other crop alternatives. The high insurance guarantee, $8.62 per bushel in the Southern Plains states, appeared to have played a part in boosting plantings this year. Analysts were expecting a steep decline in soft red plant-
ings because of the wet conditions from the mid-South through the Ohio River Valley, especially in the eastern segment of the region. Ohio, Indiana, and Illinois all had sharp reductions in acreage from last year, but other important states were a little higher to a little lower, with increases more than outweighing those with smaller plantings. We suspect the high insurance guarantee, $8.20 in Corn Belt states, and $8.09 in southern states, helped sustain plantings this past fall. Wet conditions, and slow harvest of fall crops, most likely reduce plantings in Illinois, Indiana, Ohio, and Michigan. Had planting gone smoothly, we suspect soft red plantings would have been sharply higher because of the insurance guarantee. The higher-than-expected wheat plantings may offer an insight into the potential for acreages of other crops to be planted this spring, including corn and soybeans. We know plantings of all crops in major corn states were 6.6 million acres less in 2011 than 2008. There’s another 3.7 million acres that have come out of the Conservation Reserve Program. If prices hold firm through winter, insurance guarantees are going to be high for corn and soybeans in particular. The experience in wheat implies if planting weather is good, acreages could be large.
Cents per bu.
ü2011 crop: The negative USDA report dropped corn prices through minor support. Prices may slip slightly lower into the minor cyclic low due at month’s end. Don’t make any sales on this break; better prices should be available later this winter. ü2012 crop: Hold off on making sales. Once this break is over, there will be better opportunities yet this winter, maybe even as good as the recent ones. vFundamentals: The trade anticipated a lower 2011 corn production number going into the USDA report, but was surprised by a half bushel upward revision in yield. That resulted in a slightly larger crop, 12.358 billion bushels. The Dec. 1 grain stocks and the new ending stocks projection also were higher than expected. But the 870-millionbushel carryout is still nowhere near burdensome. And, USDA may not have revised South American numbers down as much as necessary.
Soybean Strategy
ü2011 crop: Don’t make sales on this break. We still expect to see higher levels later this winter. Given the break, we may adjust our sales targets down, but the depth of this break will tell us something about the potential to rebound. ü2012 crop: If South American weather problems creep back into the picture, new-crop soybean prices are going to have to move higher again to secure the necessary acreage. We’d avoid making any sales on this break, but would use a rebound back above $12 on November futures to make catch-up sales. vFundamentals: The temporary relief from dry, hot weather in South America and the USDA numbers triggered the decline in prices. Even though it rained in South America last week, the overall conditions are still dry. And longer-range forecasts still don’t indicate there’s been a shift in the overall pattern. Even though U.S. supplies may be a bit more abundant, the 275-million-bushel carryout is still not burdensome.
And USDA tightened its world balance sheet slightly.
Wheat Strategy
ü2011 crop: Bearish USDA numbers hit wheat prices hard. The Chicago March contract fell through significant supports. This opens the door for a test of the $5.78 low. Do not sell weakness. There should be a rebound to higher levels. The carry in futures still pays for commercial storage, making spring hedge-to-arrive contracts the best marketing tool. ü2012 crop: Hold off making sales, waiting for a
rebound from this break. vFundamentals: The focus in the wheat market turned toward the negative USDA numbers. Winter wheat seedings were extremely bearish, with the 41.947-millionacre intended plantings coming in 3 percent higher than last year and topping trade expectations . Ending stocks, 870 million bushels, were cut slightly, but still topped expectations. The only bright spot was weekly export sales coming in at 438,200 tons, above trade expectations for 250,000 to 400,000 tons.
Cash Strategist sales recommendations AgriVisor endorses crop insurance by
Beans '11 '12 9/13/10 10% 10.27 8/29/11 10% 13.50 10/11/10 10% 11.54 11/15/11 10% 11.99
AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.
Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number
309-557-2274
4/25/11 10% 13.76
9/13/10 10% 4.61
8/29/11 10% 6.65
10/11/10 10% 5.28 11/15/11 10% 5.671/2 1/24/11 10% 5.87
1/31/11 10% 13.31
AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147
Corn '11 '12
80% unsold
4/25/11 10% 6.76 80% unsold
Wheat '11 '12 7/13/10 10% 6.00
7/30/10 10% 6.98
5/31/11 10% 6.79
8/6/10 15% 7.35
8/1/11 10% 13.71 11/15/11 10% 11.99
8/1/11 10% 6.77 11/15/11 10% 6.45
8/8/11 10% 6.68
30% unsold
30% unsold
Prices are new crop or nearby futures
Prices are new crop or nearby futures
5/26/11 10% 13.75
1/2
11/17/11 20% 6.343/4
7/21/10 15% 6.60
11/17/11 20% 6.30 20% unsold Prices are new crop or nearby futures
80% unsold
FarmWeek Page 16 Monday, January 16, 2012
perspectives
USDA’s message is a pig in the poke for food safety
Field mom Betsie Estes, third from left, listens during an Illinois Farm Families discussion in December. Joining at the table from left to right are farmers Chris Gould of Maple Park and Pam Janssen of Minonk, Estes, field mom Jenn Weiss of Big Rock, and Shealegh Laramie and field mom Farrah Brown, both Glendale Heights. (FarmWeek file photo)
Truth from farmers a valued commodity Editor’s note: Betsie Estes is a field mom with Illinois Farm Families, a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau. This column is reprinted with her permission. It appeared Dec. 7 on her blog, Super Suburbs, at {http://supersuburbs.com/ 2011/12/truth/}. A field mom is an urban mother who has questions about food, farmers, and farming. So we had a meet-up this past weekend (during the IFB annual meeting in Chicago) with BETSIE ESTES some of the guest columnist farm moms downtown, and I had a blast! Once again I was reminded of how lucky I am to be a field mom. For some reason, almost all of my conversations that night centered around pork. The pigs themselves, the process of farming them, stuff like that. At one point, Chris Gould, a farmer who operates just about 50 miles outside of the big city, was telling our table about a trip he took awhile back. During his travels he wound up at the Hormel plant in Austin, Minn. My ears definitely perked up when he mentioned that, because just earlier in the week I had read this article, about a high incidence of an autoimmune disorder among certain workers at the plant and how Hormel has reacted.
Now obviously that article focuses a lot on labor and immigration issues, but things like: “... And then there was the sound of sizzling electric prods, the clatter of cloven hooves on metal grating, and the guttural, almost human, screeching of hogs” were what stood out to me. I’m an animal lover, so stuff like that gets under my skin, and makes me question my decision to fry up a pound of bacon and serve BLTs for dinner. So Chris mentioned going to Austin; I embarrassed myself and yelled out “the Spam plant!” (as if everyone else at the table had read the article, too), and he continued to tell us about his experience.
Unlike Ted Genoways, the author of the article, Chris did get to venture inside the plant. He told us the butchering process was calm. Quiet. That the pigs are loaded off of the trucks and put in a pen to relax before they’re slaughtered (I’m sorry, but I can’t
think of a more PC word for that ...). Hmm. So here’s the thing — while “calm” and “quiet” are totally relative terms, and probably mean something a little different to a pig farmer than they do to someone like me who works in an office all day, the contrast between what Chris described and what Genoways described is huge. And THIS is why I applied to be a field mom. Because I want to get closer to the truth. Not the media version, not the PETA (People for the Ethical Treatment of Animals) version, not even the Hormel-spun version — I want to sit down with the farmers themselves and hear what they have to say. Chris didn’t know what I’d read earlier in the week. He didn’t know that the vision of ... the guttural, almost human, screeching of hogs ...” was still lingering in my mind. He was just a guy, telling a table of ladies about a trip he took. I think that’s about as close to the unspun truth as this suburban mom is going to get, and I’m so thankful to have the opportunity to hear it firsthand. Betsie Estes of Elk Grove Village is a mother of two. Her information and farm tour experiences may be viewed at {www.watchusgrow. org/_blog/Illinois_Farm_Families_Blog/tag/Betsie_Estes/}.
What does a pig in a sauna have to do with food safety? I don’t know, but my guess is nothing. That’s why a wacky public service announcement featuring a pig and a towel-clad woman sharing a sauna made me scratch my head. I couldn’t believe that USDA, an agency that works so closely with farmers, would release such a ridiculous promotion piece with a questionable message. Recently, a Saturday morning educational show about animals caught my attention and I watched for a few minutes. At first, I didn’t pay attention when a woman in a sauna popped up during a commercial break, but then I heard a pig oinking in the background. The camera pulled back and I saw a hog standing on a bench, looking toward the woman and oinking. KAY What the heck? SHIPMAN The woman glanced over at the pig and then sprinkled water over rocks on a stove to increase the steam. A thermometer was shown registering 90 degrees Fahrenheit (F). The woman glanced over at the pig, which continued oinking at her. Just then the word “cook” appeared above the image of the woman with the pig facing her. What? I don’t even want to think about the crazy message that picture sent to kids or anyone else who was watching the animal program. Cooking a live pig in a sauna? The scene changed to a plain red background with the words, “Cook foods to the right temperature using a food thermometer,” while a male voice read the information. The guy went on to say that 3,000 Americans will die from food poisoning. I’m not surprised if they cook their food in a sauna. The man told people to keep their families safer by finding food-safety steps on a government website. At the bottom of the screen was the USDA logo. Then scene switched back to the sauna without the woman and the pig walked out of the camera view. See for yourself online at {www.youtube.com/ watch?v=Sb29Zexh_Vo}. Farmers, especially those involved with Illinois Farm Families and Illinois Agriculture in the Classroom, work so hard to provide accurate information to consumers. They work to carefully select the right images and use the right words to communicate with non-farmers. Farmers take good care of their livestock, but I don’t know any who take their hogs into a sauna with them. On top of that, that USDA announcement pitched some questionable information in 30 seconds. If USDA wants people to properly cook pork, a thermometer should range between 145 to 160 degrees F — not 90. And 90 degrees isn’t that hot for a sauna, but it is within USDA’s “danger zone” for food storage. What was the message and who was the target audience? Kids? Teens? Adults? It grabbed my attention only because it was confusing and dumb. Let’s learn from our conversations with consumers. They’ve told us they want to know the truth about their food. We owe them that much — and so does the USDA. Kay Shipman is FarmWeek legislative affairs editor. Her e-mail address is kayship@ilfb.org.
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