Matt and Jenna Kilgus of Fairbury claimed runner-up honors for a major AFBF award. page 3
Thanks to 42 county pledges, IFB raised 69 percent of funds for the Saint Louis Science Center. page 4
AMERICAN FARM BUREAU FEDERATION ANNUAL CONVENTION
IFB Young Leader wins AFBF discussion meet Monday, January 19, 2015
BY KAY SHIPMAN FarmWeek
For the first time ever, could U.S. farmers plant more soybean acres than corn this year? page 9
Transparency, conversations and education propelled Woodford County Farm Bureau Young Leader Sean Arians into first place of the National Young Leaders and Ranchers Discussion Meet last week. Arians, the fourth consecutive Illinois Young Leader to reach the finals, bested competitors Sean Arians from Indiana, Iowa and Tennessee during the American Farm Bureau Federation annual convention in San Diego. The market-
ing manager for Precision Planting receives his choice of a 2015 Chevrolet Silverado or a 2015 GMC Sierra, courtesy of GM, and registration to the 2015 FUSION Conference for Young Leaders, Women’s Leadership and Promotion and Education volunteers. During discussion of farmer liability for traceable food-borne illness, Arians focused on the roles and responsibilities of the entire food chain from farmers to consumers and urged Farm Bureau to educate farmers and consumers about safe food practices. “We have a responsibility — as a farmer — to continue to produce safe food,” Arians told the audience that included many home-state and county Farm Bureau members and staff. “Farmers have a long tradition of
Two sections Volume 43, No. 3
Guebert elected to AFBF board
Illinois Farm Bureau President Richard Guebert Jr. begins his first term on the American Farm Bureau Federation (AFBF) Board. Delegates at the 96th AFBF annual convention elected Guebert and six others to the board. Guebert helped develop AFBF’s strategic action plan following the annual convention delegate session. The plan addresses several public policy issues, including: • Advancing legislation that addresses agriculture’s long- and short-term labor needs; • Protecting farmers’ abilities to use biotech plant varieties and other innovative technologies; • Opposing expansion of federal jurisdiction under the Clean Water Act; and • Advancing legislation that reforms the Endangered Species Act. The board approved an additional list of issues Richard Guebert Jr. that will require monitoring. They include efforts to enhance international trade opportunities, business tax reform, farm bill implementation, the overall farm economy, and energy availability and affordability. Guebert, an Ellis Grove farmer, serves as IFB’s 15th president. He was IFB vice president from 2003-2013. Prior to that, Guebert led the Randolph County Farm Bureau. Guebert and his son, Kyle, operate a corn, soybean and wheat farm. Other new directors elected include Jim Holte of Wisconsin, Russell Boening of Texas, Mike McCormick of Mississippi, Chuck Fry of Maryland and Mike LaPlant of Washington. Eleven other state Farm Bureau presidents were re-elected.
IFB proposals advance in AFBF policy action BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
Illinois Farm Bureau last week succeeded in positioning the American Farm Bureau Federation (AFBF) to stay current and involved with unmanned aerial vehicle
See Discussion meet, page 3
(UAV) issues. IFB-proposed UAV policy passed easily during delegate debate at the AFBF annual convention in San Diego. IFB proposed policy supporting landlords’ and tenants’ ability to fly over their fields for any reason and to not be considered a commercial activity. The policy also supports development of reasonable UAV operation certification and safety training requirements by the Federal Aviation Administration (FAA). Delegates voted to include support for the use of safety features to notify manned aircraft of UAV operation. IFB Director Steve Hosselton of Louisville raised the issue of the definition of “navigable air-
space” and successfully persuaded delegates to protect farmers’ rights to use UAVs above their property and delete other proposed language. “This (UAV policy) clarifies regulatory issues the FAA would try to regulate. The policy tries to protect the property rights of landowners,” Mark Gebhards, IFB executive director of Governmental Affairs and Commodities, told FarmWeek. Gebhards viewed the UAV policy as giving Farm Bureau “a seat at the table and having the flexibility when we work with FAA.” IFB also addressed crop insurance issues related to double-crop soybeans. IFB Director Dennis Green of Lawrenceville explained to
delegates currently crop insurance claims for double-crop soybeans planted after wheat in southern Illinois count as one crop. The proposed policy “would have (double-crop crops) covered as separate crops so neither crop would impact the other,” Green added. As approved by delegates, the new policy supports allowing farmers to separately insure, by practices such as double crop, irrigation-nonirrigation, organic/nonorganic, either as part of a basic or an enterprise unit so neither crop claim calculation impacts the other. Gebhards noted the policy “allows us to work See Proposals, page 2
Illinois Farm Bureau Director Steve Hosselton of Louisville introduces IFB-proposed policy regarding unmanned aerial vehicles during policy debate at the American Farm Bureau Federal annual convention last week in San Diego. (Photo by Ken Kashian)
www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, January 19, 2015
DAIRY PROGRAM ENROLLMENT ANNOUNCED — More than half of all dairy farms in America enrolled in the new Margin Protection Program, U.S. Department of Agriculture Secretary Tom Vilsack announced last week. The optional program provides assistance to farmers when the margin — the difference between the price of milk and feed costs — falls below the coverage level selected by the farmer. “Enrollment far exceeded our expectations in the first year,” Vilsack said. “We’re pleased that so many dairy producers are taking advantage of the expanded protection. USDA conducted a lot of outreach to get the word out. When you compare the initial enrollment rate for the Margin Protection Program to the longstanding federal crop insurance program, where participation ranges from 30 percent to 80 percent depending on the crop, it’s clear that these outreach efforts made a difference.” Enrollment for fiscal year 2016 will be held between July 1 and Sept. 30.
SURVEY SHOWS 2015 OPTIMISM — A turn of the calendar to 2015 seems to have spurred optimism among Americans responding to the latest COUNTRY Financial Security Index survey. Eight-five percent of survey respondents said their personal financial situation will be better or remain the same in the year to come. Thirty-eight percent said 2015 will be better. Millennials proved most optimistic with half of them saying their finances will improve. Among those who set financial goals for themselves in 2014, 80 percent said they achieved at least some of their goals. Twenty-four percent said they achieved all their goals. This year, Americans aspire to continue their financial success by making a budget and maintaining it. Seventy percent said they will likely set a budget and stick to it in 2015. That includes 54 percent of people who did not set financial goals at all in 2014.
HIGH ‘STEAKS’ IN NEW BEEF GAME — Where’s the beef these days? Alive and well in the form of “The Steaks Are High,” a new beef game on {myamerican farm.org}. Launched by the American Farm Bureau Federation Foundation with support from the Beef Checkoff Program, pre-K through fifth grade game players pick an avatar character from the beef industry and explore the beef production process from cow-calf operation to livestock auction to stocker ranch to the feed yard. The game reinforces national learning standards for mathematics. It also introduces users and their families to how farmers and ranchers care for their animals and the environment. An online eComic lesson plan and activity sheet supports the game.
(ISSN0197-6680) Vol. 43 No. 3 January 19, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.
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Nelson named new Illinois ag director BY CHRIS ANDERSON FarmWeek
Upgrading infrastructure. Assessing agriculture and business regulations. Expanding export markets. Improving Illinois’ business climate. Those issues lead a list of agricultural priorities for Gov. Bruce Rauner and Philip Nelson, Illinois’ next agriculture director and immediate past Illinois Farm Bureau president. “To grow our business, we’re going to have to address a number of these items. I truly believe this administration can turn the challenges into opportunities,” Nelson said. A Seneca farmer, Nelson said he plans to put a “new face” on the department of agriculture. “The department is not just about agriculture but also food. We can reach out to consumers in the same
way Illinois Farm Families does,” said Nelson, referring to an Illinois agriculture coalition, including IFB, aimed at Philip Nelson sharing today’s agricultural information with consumers. IFB President Richard Guebert Jr. expressed his support for Nelson’s nomination. He said Nelson possesses the necessary qualifications as a working farmer and agricultural leader to serve in the role. “This decision is important for the state’s largest industry. Nelson’s most recent experience serving as the president of the IFB will allow him to take a unique skill set to IDOA. He has a long history
of supporting farming and rural life, which will help him lead the department. We look forward to working with Nelson in his new role.” Nelson served as IFB president from 2003-13. He led the organization as vice president from 1999-2003. Prior to those roles, he served as president of the Illinois Soybean Association and LaSalle County Farm Bureau, and vice president of the American Soybean Association. “The budget will certainly be something that will be under scrutiny very shortly as the governor is going to make a budget address in February. He knows, and I know the challenges facing our state,” Nelson said. “The governor said, ‘Philip, if you come on board, I’ll give you the resources you need to truly make an impact on the department.’”
Three Illinois projects receive RCPP funding Three conservation projects in Illinois will receive a total of $2.7 million to help protect wildlife and improve soil quality, U.S. Secretary of Agriculture Tom Vilsack announced last week. The projects were among more than 100 across the country that will be funded through the new Regional Conservation Partnership Program (RCPP). In all, more than $370 million will be awarded. RCPP, authorized in the 2014 farm bill, encourages public-private partnerships. Vilsack said he expects each project to be matched at least “dollar-fordollar,” generating a total of about $750 million. “This is indeed a new era in conservation,” Vilsack said. “It marks a significant opportunity in this country to increase investment in conservation and obtain the benefits Tom Vilsack of better soil health, water quality and quantity, and better habitat as a result.” The three Illinois projects include: • Conservation Cropping Systems for Improving Soil Health: Soil Health Assessment, Comprehensive, Conservation Planning and Implementation on targeted farms throughout Illinois. The project, which received $1.6 million, will entail working with about 100 farms across Illinois to create a network of “Soil Health Model Farms.” Select Environmental Quality Incentives Program participants will work with a
soil health expert to identify a combination of farm specific management practices including cover crops, no-till and nutrient management strategies. National Resources Conservation Service (NRCS) and Illinois Department of Agriculture Bureau of Land and Water Resources will team up on the project. • Best Management Practices (BMP) Implementation for Nutrient and Sediment Loss Reduction in Macon County. NRCS and Macon County Soil & Water Conservation District and the Sanitary District of Decatur will conduct in-depth testing of new edge-of-field BMPs — such as drainage water management, bioreactors and saturated buffer strips. The study will evaluate whether they are economically and ecologically worthwhile practices to reduce nutrient loss through subsurface tile drainage. • Shorebird Conservation Acreage via Drainage Water Runoff Control. NRCS and the Department of Natural Resources and Environmental Science at the University of Illinois received $500,000 to double annual implementation of temporary wetlands through NRCS’s drainage water management (DWM) program. The DWM program also helps reduce nitrogen and phosphorous runoff, improve water quality and possibly increase crop production. “The Illinois project is a globally important stopover location for many species of conservation concern, especially the American golden plover,” according to a news release. “Millions of other migratory shorebirds and waterfowl use the area.”
Continued from page 1 with the RMA (Risk Management Agency) to distinguish double crops so they’re not treated as one crop ... This gives us the ability to try and get that to happen.” An IFB proposal expanded AFBF specialty crop policy. IFB Director Chad Schutz of White Hall urged delegates to approve new policy supporting the production, process-
ing, commercialization and utilization of industrial hemp. “This is a half-a-billion (dollar) industry (crop) that we import now,” Schutz said. “This industry has been asleep for 80 years.” Delegates overwhelmingly backed the IFB proposal.
BY DEANA STROISCH FarmWeek
Proposals
Chad Schutz
AMERICAN FARM BUREAU FEDERATION ANNUAL CONVENTION
Page 3 • Monday, January 19, 2015 • FarmWeek
ACHIEVEMENT AWARD RUNNERS-UP
Suzanne Ellerbrock (left) and Susan Scholz (right) pitch their business idea to a crowd at the American Farm Bureau Federation (AFBF) convention in San Diego. Their Quincy-based company, Golden Bridges, was one of four finalists in the Rural Entrepreneurship Challenge. (Photo by Kay Shipman)
Iowa company named AFBF ‘Entrepreneur of the Year’ BY DEANA STROISCH FarmWeek
Owners of a Quincy-based senior move management company didn’t come home with the top prize, but they feel “blessed and honored” to be among the four finalists of American Farm Bureau Federation’s first-ever Rural Entrepreneurship Challenge. Selected from more than 200 applicants from 35 states, representatives from Golden Bridges were flown to San Diego to pitch their business idea to AFBF convention participants and judges. Judges named ScoutPro of Iowa Entrepreneur of the Year for its software that assists farmers with crop maintenance. California-based Pasturebird won the People’s Choice award for its method of producing pastured poultry on a large scale. “We were unique in that we were a service-based business — certainly not something a lot of people had heard about,” said Nancy Waters, one of Golden Bridges’ owners. “The winners were very technology oriented.” Golden Bridges grew from the idea of three friends: Waters, Suzanne Ellerbrock and Susan Scholz. Waters describes the company, started in 2013, as the “wedding planners of the senior move.” Clients can pick and choose services that fit their needs. Among them: sorting belongings, decluttering, packing and unpacking, and coordinating utilities. As a finalist, Golden Bridges received $15,000. Waters said the money will be used to buy a company vehicle to help reach rural clients. Currently, they use their personal vehicles. After the announcement, Waters said they were approached by several people from Illinois impressed by their company. They heard comments such as: “Why did I have to come to San Diego to hear about this phenomenal service?” and “You have no idea the amount of people you reached through your presentation.” “That was a huge reward in our view,” Waters said. “The people of Illinois made us feel like we were their ‘People’s Choice,’” she said. “That was very humbling, and we were very proud to represent Illinois.”
Discussion meet
Continued from page 1 producing safe food ... Be transparent. Have conversations and educate people.” Arians highlighted the Illinois Farm Families program
and its consumer outreach with Chicago-area moms “to show what we do on farms.” He noted Farm Bureau policy supports USDA Good Agricultural Practices proce-
Jenna and Matt Kilgus of Fairbury, right, qualified as runners-up for the American Farm Bureau Federation (AFBF) Achievement Award. Roger Phelps, left, Stihl communications manager, presents the Kilgus’ with one of their prizes at the AFBF annual convention in San Diego. The Kilgus’ also won a Case IH Farmall 65A tractor, courtesy of Case IH, and $3,000 in cash. The Achievement Award recognizes young farmers and ranchers who excel in their farming or ranching operations and exhibit superior leadership abilities. Participants are evaluated on their agricultural operation’s growth and financial progress, Farm Bureau leadership and leadership outside of Farm Bureau. The Kilgus’, along with Matt’s uncle, Paul, other family members and employees milk a herd of 140 Jersey cows. They bottle and market all the non-homogenized milk, which means the cream rises to the top of the milk. Chris and Rebekah Pierce of Kentucky won the Achievement Award. (Photo by Ken Kashian)
Family, farming, youth Mays’ guiding forces
BY KAY SHIPMAN FarmWeek
Facing a panel of three judges and many Illinois Farm Bureau supporters, Caleb and Kimberly May of Christian County shared why they returned to live on a farm for their young children. The Mays represented Illinois in the American Farm Bureau Federation Young Leader Excellence in Ag Award last week in San Diego. In a tag-team presentation that included images of their children, farm and activities, the couple explained Caleb’s risk management work and their show cattle operation. They listed their top goals of encouraging more young people to work in agriculture, promoting a positive image of American farmers, and working for stable and consistent agriculture policy. “As farmers, we need to have a presence on social media platforms ... (and offer information) based on facts, personal experience and values people can relate to,” Caleb said.
dures and raised the problem of an underfunded agency being responsible for implementing food safety. “We, as Farm Bureau, have a chance to be proac-
Caleb and Kimberly May
Kimberly described the redevelopment of the Christian County Young Leaders Committee as a memorable accomplishment and the group’s 5K race, whose growth supports ag scholarships. Caleb shared their experience of “adopting” and interacting with a Chicago-area fourth-grade classroom, and realizing the many basics of agriculture and rural life that farm families take for granted.
tive” on this issue, Arians said. To reach the final round, Arians advanced through two preliminary rounds and a Sweet 16 round.
The discussion meet competition simulates a committee meeting with participants judged on their ability to exchange ideas and information on a set topic.
Vilsack covers gamut in town hall meeting More than 40 pledges made launched into questions, then about the impact” of proposed to Saint Louis Science Center stopped, and apologized for not regulations, the secretary con-
FarmWeek • Page 4 • Monday, January 19, 2015
BY KAY SHIPMAN FarmWeek
U.S. Agriculture Secretary Tom Vilsack clarified, explained and learned during a first “ag town hall” meeting during the American Farm Bureau Federation (AFBF) annual convention last week in San Diego. Seated on high stools amidst a theater-in-the-round, Vilsack and AFBF President Bob Stallman took prearranged and spontaneous questions from the trade show floor. Stallman immediately
allowing Vilsack to give opening comments. “A secretary never corrects a president,” Vilsack quipped as the audience roared. Asked by a South Dakota farmer what USDA could do to “instill common sense in the regulatory process,” Vilsack set the record straight: “I grapple with this all the time — the thought that USDA imposes its will on other agencies. That’s not the way it works. “We educate sister agencies
COLLECTING HONORS
Illinois Farm Bureau President Richard Guebert Jr., left, receives a New Horizon award from American Farm Bureau Federation President Bob Stallman. Given to six states for innovative new programs, Guebert accepted the award for IFB’s Building Bridges with Farmers-Consumer Dialogue conducted in Normal last year. The program included a screening of the movie, “Farmland,” accompanied by a farmer panel discussion attended by more than 50 representatives of local government, academia, hospitals, labor unions, food industry and media. Guebert also accepted a Scholar Award given to six states with the highest total donations to AFBF Foundation for Agriculture. IFB further earned a President’s Award for achieving quota and demonstrating superiority in the Awards for Excellence categories. (Photo by Ken Kashian)
tinued. “We can’t stop a sister agency. It’s a partnership.” Vilsack then praised Farm Bureau for educating the general public about modern farming, the practices being used and the reasons for their uses. Vilsack added he encouraged U.S. Environmental Protection Agency staff “to talk with farmers.” Likewise, agriculture needs to help the public understand farmers’ investment in conservation. He noted 600,000 farmers and 400 million acres are involved with federal conservation programs. USDA and farmers need quantified data on conservation practices to prove they’re “making a difference,” Vilsack said. Referring to water quality issues, Vilsack added, “The water condition evolved over a long time and there are no quick fixes.” A Wisconsin aquaculture farmer raised a problem of U.S. Fish and Wildlife staff applying a federal law related to wood products to interstate shipments of farm-raised fish, causing problems for farmers. Vilsack admitted he’d not heard of that issue, but promised he’d get staff to look into the matter. Asked by a Minnesota farmer about trade promotion authority (TPA), Vilsack stressed, “It is really important for us to have TPA ... We’ve got to do a better job (convincing the public) that trade creates jobs and is a net plus for the economy and agriculture.”
Start Planning Now
BY DEANA STROISCH FarmWeek
Illinois Farm Bureau has raised 69 percent of its $230,000 fundraising goal to help pay for a new agricultural exhibit at the Saint Louis Science Center. The campaign, which officially kicked off during the IFB Annual Meeting in December, has raised a total of $159,270. County Farm Bureaus were challenged to contribute to the project by May 1. IFB will match county contributions of up to $100,000. As of Thursday, IFB had received pledges from 42 county Farm Bureaus and individuals totaling $65,520. IFB matched $63,750. IAA Foundation donated $30,000. “I’m pleased to hear that 42 counties and individuals have already made pledges. We have raised 69 percent of our goal, but there is still more to do,” said IFB President Richard Guebert Jr. “This is a tremendous opportunity to tell the agriculture story to over a million visitors each year.” The $6 million agricultural exhibit will be built on 1 acre of land and include 50,000 square feet of exhibit space — both indoors and outdoors. It will feature interactive exhibits and activities, a greenhouse and classrooms
for public programs. Illinois and Missouri Farm Bureaus agreed to help pay for the exhibit’s interactive map, which will provide a high definition, aerial view of farms, roads, cities, mountains, and rivers of Missouri and Illinois. It will be called the “Illinois and Missouri Farm Bureaus Map.” Rolling information tablets will be available for visitors to interact with the map. When a visitor rolls the cart past a disc, it will launch a video of a farm family from that county. Counties that contribute at the $1,000 matching level can choose the family featured in that county. “The technology for the state of Illinois and Missouri maps to play the county farm family videos is coming together,” said Sabrina Burkiewicz, IFB’s promotion manager. “The Science Center says it will be ready to talk about the plan to choose and record the farm family videos in about four weeks. So, exciting progress is being made. Our biggest focus at the moment is to encourage remaining counties to make pledges so we can reach our $230,000 goal.” Fundraising updates can be found about twice each month at {www.ilfb.org/sciencecen ter}.
Attend a meeting at your convenience ...
Date
Location
City
Time
Contact
January 20
Wa ashi ashington County Farm Bureau
Nashville
8:00 AM
Brad Conant, 618-327-3081
January 20
Sunrise Community Center
Newton
1:00 PM
Tony Trimble, 618-783-2733
January 20
Cumberland County Farm Bureau
Toledo
7:00 PM
217-849-3031 Sarah Walk, Walk, 21
January 21
Will County Farm Bureau
Joliet
1:30 PM
Mark Schneidewind, 815-727-4811
January 21
Kinsman Community Center
Kinsman
6:30 PM
Tasha Bunting, 815-942-6400
January 23
Elks Club Banquet Room
Pontiac
8:30 AM
Marlon Eilts, 815-842-1376
January 26
Galesburg Pavilion
Galesburg
8:00 AM
January 26
Stoney Creek Inn
Moline
1:30 PM
January 27
First United Methodist Church
Sullivan
9:00 AM
Tyyler Harvey, 217-728-4214
January 27
U of I Extension
Taylorville
6:30 PM
Melissa McMillan, 217-824-2940
NC380D4
Additional meetings take place through March. Follow FarmWeek FarmW Week k®, FarmW FarmWeekNow.com, eekNow.com, your favorite RFD Radio Networ Network k® radio station, or ilfb.org/farmbill to learn more.
AMERICAN FARM BUREAU FEDERATION ANNUAL CONVENTION
Ag attache: Farm Bureau leading by example
Page 5 • Monday, January 19, 2015 • FarmWeek
BY KAY SHIPMAN FarmWeek
American agriculture not only serves as a great trading partner, but Farm Bureau also serves as a role model for farmers in other nations, according to Joy Javelosa, agricultural attache with the Embassy of the Philippines. Javelosa and agricultural representatives of 10 nations and the European Union joined Illinois Farm Bureau leaders during the American Farm Bureau Federation annual convention last week in San Diego. “We appreciate how you (Farm Bureau) are organized and group yourselves, and make your views known to your government and legislators,” Javelosa said. In addition to represent-
ing farmers’ opinions, Farm Bureau also seeks to involve young people in the industry, she noted. “I look closely at your Young Farmer program and encourage our younger farmers to go into farming,” Javelosa added. Agriculture comprises a significant portion of Filipino employment at 32 percent of a population of more than 19 million. The average farm measures 5 acres. The U.S. remains a top location for Filipino exports, while the nation of 7,000 islands also ranks as the 10th largest buyer of U.S. agricultural products, including the second largest importer of U.S. soybean meal, according to Javelosa.
Philippine Embassy’s Agricultural Attache Joy Javelosa, left, chats with Illinois Farm Bureau President Richard Guebert Jr., right, and IFB Director Dennis Green during the IFB breakfast meeting with agricultural attaches for several nations at the American Farm Bureau Federation annual convention, San Diego. (Photo by Kay Shipman)
EU rep: Consider Parmesan cheese as traditional rural intellectual property
BY KAY SHIPMAN FarmWeek
Canadian Agriculture Counsellor Michael Hawkins, center, discusses trade issues with Illinois Farm Bureau Director Chad Schutz, left, and Adam Nielsen, IFB director of national legislation and policy, during an IFB breakfast for agricultural attaches at the American Farm Bureau Federation Annual Convention in San Diego. (Photo by Kay Shipman)
Canada and U.S. form strong bilateral partners
Canada and the U.S. comprise strong bilateral trading partners, one reason a Canadian exhibit graced the American Farm Bureau Federation (AFBF) IDEAg Trade Show last week in San Diego. Canadian Agriculture Counsellor Mike Hawkins told FarmWeek some U.S. farmers sometimes are caught off guard about the amount of trade that occurs between the neighboring nations. Hawkins joined agricultural attaches from several nations and Illinois Farm Bureau leaders at the AFBF annual convention. Sitting down with Farm Bureau leaders over breakfast “is a way for us to continue the dialogue on issues and to improve our mutual competitiveness,” Hawkins said. “We really value the relationship we have with Farm Bureau and Illinois Farm Bureau.” Trading ties with Canada surfaced later during AFBF policy debate. IFB delegates proposed amending AFBF policy to oppose any Country of Origin Labeling policy that restricts U.S. agricultural exports. “We feel with one of our best trading partners, Canada, our producers are being put at a disadvantage,” IFB Director Chad Schutz told fellow AFBF delegates. Canada has warned sooner or later it will place tariffs on a range of U.S. ag products, he noted. However, another delegate countered the potential trade “threats hanging over the head of USDA is what is needed to get USDA to move.” Delegates then voted against the proposed amendment. — Kay Shipman
Giulio Menato, the European Union (EU) first counselor for agriculture, last week encouraged American farmers to consider 500 million potential customers available to them through the EU and its 28 member states. On the American Farm Bureau Federation IDEAg Trade Show floor and during an Illinois Farm Bureau breakfast meeting, the international trade representative discussed the purchasing power of trade agreements between the U.S. and the EU. If the value of the euro “decreases a bit more, it makes our exports more competitive,” Menato told FarmWeek. However, Europeans hold tightly to the value of name recognition, especially certain foods linked to locations, such as Parmesan cheese. “Our farmers, of course, want to use these protected names,” Menato said. “They have to meet certain standards (to sell a labeled product). Would others have to do that somewhere else?”
The EU wants to ban the use of European names on certain foods and beverages made in the U.S. and promotes protection of geographical indications on products. Menato advocated these traditional EU products be considered intellectual property. “The U.S. is proud of its innovation,” he added.
‘Our far mers, of course, want to use these protected names.’ — Giulio Menato European Union agriculture counselor
Menato asserted certain foods “are built on traditions that are alive” and protecting the product names also would keep the rural communities that have preserved those traditions alive. Such products “are the intellectual property rights of the poor people,” he concluded.
Farm Bureau members unite with French
Several U.S. farmers expressed unity with France during the American Farm Bureau (AFBF) convention as the country mourns 17 killed in Paris at the hands of terrorists. Following an event held by the Illinois Farm Bureau, France’s agricultural attaché to the United States, Christophe Malvezin, said he was touched by the number of U.S. farmers and ranchers BY MIKE ORSO
who stopped at the European Union’s (EU) exhibit during the AFBF meeting to offer condolences and support. “I want to express my thanks to all of the farmers of the Farm Bureau federation that came to the booth of the EU anytime I was there to mention the shared values that we’ve had in common for centuries between the U.S. and France,” said Malvezin. French farmers took part in peaceful rallies last week
along with an estimated four million people in France to support freedom and denounce terrorism. “Farmers from France called to reinforce the unity around the common values we share — liberty, opportunity and freedom of expression,” said Malvezin, following an IFB breakfast he and other international agricultural attaches attended with more than 400 Illinois farmers and guests.
AMERICAN FARM BUREAU FEDERATION ANNUAL CONVENTION
FarmWeek • Page 6 • Monday, January 19, 2015
Borgman and Grandin earn AFBF Distinguished Service awards tee named the winners. Borgman retired last year as director of ag industry relations for Deere. He played an integral role in the company’s efforts to support and promote renewable energy sources. Don Borgman Borgman was recognized early last year for his work by the National Biodiesel Board with
Don Borgman, a Missouri farmer and retired John Deere executive, and Temple Grandin, a Colorado State University animal science professor, captured Distinguished Service Awards from the American Farm Bureau Federation (AFBF). Illinois Farm Bureau nominated Borgman for the highest AFBF honor awarded. Presented at the annual convention, the award goes to individuals who have devoted their careers to serving agriculture. A national Farm Bureau commit-
SHARING OUTREACH TO BUSINESSES
a lifetime achievement award. Borgman believes farmers and ranchers should be in the spotlight sharing their stories, and this passion for farming brought him to serve on the board of the U.S. Farmers and Ranchers Alliance. He has also been actively involved in a number of other leading industry groups, including the National Association of Farm Broadcasting Foundation, the National Corn Growers Association and the American Soybean Association.
Effingham County Farm Bureau member Janice Mellendorf, right, shows materials used in the county Farm Bureau’s Business After Hours Agriculture and Commerce program to Oklahoma Farm Bureau members James and Candy Fuser of Afton, Okla., last week in San Diego. One of two from Illinois, the county Farm Bureau highlighted its program to educate local businessmen about modern agriculture at the American Farm Bureau County Activities of Excellence exhibit during the AFBF Annual Convention and IDEAg Trade Show. (Photo by Kay Shipman)
Grandin, nominated by Colorado Farm Bureau, is a leading authority on farm animal behavior. Her systems for reducing animal stress in processing plants are used throughout the country and around the world. Grandin also developed an objective scoring system for assessing and handling cattle and pigs at meat plants. A number of major corporations now use this scorecard to help improve animal welfare.
MILLION MEAL CHALLENGE
Kane County Farm Bureau Manager Steve Arnold, left, and county Farm Bureau President Joe White explain the county Farm Bureau’s Million Meal Challenge to Texas Farm Bureau members Joe and Jodie Goff of Broaddus, Texas, last week in San Diego. One of two from Illinois, Kane County featured its program to relieve local hunger in the County Activities of Excellence exhibit during the American Farm Bureau Federation Annual Convention and IDEAg Trade Show. (Photo by Kay Shipman)
Farm bill: Your questions answered
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In addition to hosting informational meetings across the state, Illinois Farm Bureau’s Doug Yoder will answer FarmWeek reader questions about the farm bill decisions farmers face. This week’s question: Q: We started farming Conservation Reserve Program (CRP) ground in 2014. Can we update the yield history with the county substitute average or do we have to use the old yields the Farm Service Agency (FSA) office currently has on record? A: The CRP acreage can only update the payment yield if there is other acreage on that same FSA farm that was in production during part of 2008-12. Two scenarios exist: If the CRP acreage represents the entire acreage on that FSA farm, then you would not be eligible to update the payment yield. The update option relies on the planted acreage on that farm from 2008-12. If there was no planted acreage, then updating isn’t available and the CRP acreage would retain the same payment yield established with FSA prior to going into CRP. If the FSA farm that the CRP acreage was in also had other acreage that was planted from 2008-12, then those acres would be eligible to update based on the yields from 2008-12. That updated yield would apply to both the acres that were planted and also the CRP acres now being farmed since both sets of acres are on the same FSA farm. If you have a question, please email it to dstroisch@ilfb.org or mail it to: Farm Bill Questions, Deana Stroisch, 1701 Towanda Ave., Bloomington, Ill. 61701.
USDA confirms record crop yields, production
Trade focus shifts to South America, spring planting possibilities
yields total 200 bushels per acre for corn (up 22 bushels The old adage that “records from 2013) and 56 bushels per are made to be broken” ceracre for beans (up 6 bushels tainly rang true on crop farms from 2013). Total production in Illinois and nationwide in of 2.35 billion bushels of corn 2014. and 548 million USDA, in its bushels of FarmWeekNow.com annual crop beans also set summary report Visit FarmWeekNow.com and new state listen to Farmdoc’s webinar on records. last week, pegged average last week’s crop reports. USDA last yields and proweek also duction of corn and soybeans released a grain stocks report for the U.S. and in Illinois at in which year-ending stocks record levels. declined 121 million bushels Nationwide, USDA estifor corn to 1.877 billion mates corn production totaled bushel, and remained 14.216 billion bushels, a new unchanged for beans at 410 record, but down 191 million million bushels. bushels from the November Dec. 1 stocks, however, estimate. U.S. soybean produc- remained well above year-ago tion totals 3.969 billion levels at 11.203 billion bushels bushels, also a record and up of corn (up 750 million 11 million bushels from the bushels from a year ago) and previous estimate. 2.524 billion bushels of beans Final U.S. yield averages (up 370 million bushels from proved the highest ever at 171 last year). bushels per acre for corn “Taken together, the reports (down 2.4 bushels from the are slightly supportive for corn November forecast) and 47.8 prices and slightly negative for bushels per acre for beans (up soybean prices,” said Darrel .3 of a bushel from the previGood, University of Illinois ous forecast). Extension economist. In Illinois, record average USDA last week raised its
BY DANIEL GRANT FarmWeek
Lower wheat seedings could set stage for higher prices in months ahead The winter wheat market could stage a significant rally in the months ahead. Planting difficulties that slashed acreage in some states last fall followed by weather issues so far this winter hint of a sizeable decrease in production. USDA, in its winter wheat seedings report last week, estimated farmers last fall planted 40.5 million acres of wheat, down 5 percent from last year. Plantings of soft red winter wheat, the type grown in Illinois, totaled just 7.5 million acres (down 12 percent), while hard red wheat plantings totaled 29.5 million acres (down 3 percent). “Both (hard red and soft red wheat planting estimates) are below (trade) expectations and year ago levels,” Brian Hoops, analyst with Midwest Market Solutions, said during a teleconference hosted by the Minneapolis Grain Exchange. The market this spring could be “explosive,” he noted. “The winter wheat seedings numbers are a little friendly.” USDA raised its 2014-15 season-average price estimates for wheat by a dime to a range of $5.90 to $6.30. Winter wheat planting was delayed in many areas last fall by the long, drawn out harvest of record corn and soybean crops. Some of the largest drops in wheat planting occurred in Illinois and Missouri, where wheat seedings dropped 26 percent. In Illinois, winter wheat plantings last fall totaled just 550,000 acres, compared to 740,000 acres for the 2014 crop and 880,000 acres in 2013. “It went in late and had very little growth (prior to dormancy),” said Kyle Brase, a Madison County farmer and president of the Illinois Wheat Association. Wheat emergence and growth was cut short last fall by abnormally cold conditions. November ranked as the fourthcoldest on record in Illinois as the average temperature (34.3 degrees) was 8.2 degrees below average. The crop also had little protection, via snowfall, from subfreezing temperatures and winds so far this winter. “The crop already was hurt going into dormancy, and it’s had little snow cover,” Hoops said. “It (the wheat crop) likely already has crop losses, and it’s susceptible to further yield losses going into the spring months.” Wheat prices actually declined following last week’s report, though, as USDA cut feed and residual use 30 million bushels and raised ending stocks 33 million bushels to 687 million bushels. Wheat prices also received downward pressure from competing markets. — Daniel Grant
Page 7 • Monday, January 19, 2015 • FarmWeek
2014-15 season-average price estimates by 15 cents for corn to a range of $3.35 to $3.95, and by 20 cents at the midpoint for beans to a range of $9.45 to $10.95. “For now, prices of corn and soybeans will reflect the ongoing pace of consumption,” Good said. “With corn prices likely to average in the upper half of Darrel Good USDA’s projected range and soybeans in the lower half of the projected range.” USDA increased the amount of corn used for ethanol by 25 million bushels, but lowered feed and residual use by 100 million bushels. Corn exports were left unchanged at 1.75 billion bushels. “Lower feed usage is one thing dragging on the corn market,” Brian Hoops, analyst with Midwest Market Solutions, said during a teleconference hosted by the Minneapolis Grain Exchange. “But the
lower production and yield estimates (compared to November) should be bullish.” Meanwhile, soybean exports increased another 10 million bushels to a record 1.77 billion bushels. But the record U.S. production in 2014, a boost in soy output from Brazil, which USDA raised 55 million bushels, and expectations of record-large plantings this spring could pressure the market. “The report put a lot of
pressure on soybeans. I’m hoping $10 will hold,” Virginia McGathey, analyst with McGathey Commodities, said during a webinar hosted by the CME Group. “We’re really watching Brazil now.” Analysts believe soy acreage could grow in the U.S. this year due to a favorable price spread with corn and the fact that winter wheat growers planted about 2 million fewer acres than expected, which now can be planted to corn or beans this spring.
There’s a difference between field experts and experts in the field. At FS, we’re experts in the field. Our crop specialists are driven to maximize every acre and bring the latest agronomic technologies and innovations to your farm. Whether recommending the appropriate opriate hybrid or varietyy,, nutrient management for optimum growth, or advice on disease and pest management, our crop specialists are always focused on pointing your operations forward. So, the only thing you’ll be asking FS is, what’’s next?
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Resistant weed issue continues to grow; management critical
FarmWeek • Page 8 • Monday, January 19, 2015
BY DANIEL GRANT FarmWeek
A quick shot of herbicide no longer offers season-long control of many weeds, particularly when farmers use the same herbicide over and over. Some waterhemp populations in Illinois evolved resistance to herbicides from as many as five sites of action. Meanwhile, glyphosateresistant waterhemp in recent years moved about as far north in Illinois as possible when populations of the pesky plants were confirmed to the northwest in Jo Daviess County along the Wisconsin border. “Glyphosate-resistant waterhemp now pretty much is a statewide problem,”
Aaron Hager, University of Illinois Extension weed scientist, said recently at the U of I Corn and Soybean Classic in Peoria. Hager noted that when he first investigated a suspicious population of waterhemp in 1996, he had to drive 2.5 hours to find the pesky weeds. Now they’re found in nearly every county in the state. Palmer amaranth, another problematic weed species on the move, now can be found in more than one-third of all counties in the state. “That doesn’t imply it’s not in the other two-thirds of counties,” Hager said of Palmer amaranth. “We simply haven’t seen it or confirmed it in samples, yet.”
Hager urges farmers to develop weed management plans to tackle the issue of herbicide-resistant weeds rather than continue using the same strategies. “Some of the challenges will be acute, but there are ways to handle this,” Hager said. “Think more about managing weeds than simply controlling them.” Managing weeds begins with prevention. Farmers should consider burndown herbicides or tillage to control emerged Palmer amaranth plants before planting. A full rate of an effective soil-residual herbicide helps control waterhemp and Palmer amaranth. Farmers should return to
Illinois winter wine fest part of IGGVA conference Participants will find stations offering foods Twenty Illinois wineries join the Winter and suggested wine pairings. Wine may be purWine Festival starting at 6 p.m. Jan. 30 in the chased by the glass, bottle or case. Crowne Plaza, Springfield. The Conference sessions start at 9 event comprises part of the IlliFarmWeekNow.com a.m. Jan. 31 with in-depth infornois Grape Growers and VintGo to FarmWeekNow.com to mation on the history of Midners Association annual conferlearn more about the upcoming western wine making, climate ence. Illinois Winter Wine Festival. challenges, and pairing food and Tickets for the festival cost wine. $15 per person, which includes For tickets and more information, visit {illi seven tasting tickets if bought in advance and noiswine.com/events} or call the IGGVA five tickets if bought at the door. Additional office at 217- 726-8518. tickets may be purchased.
“Let’s talk” isn’t just an invitation.
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It’s how we do business. Our experts at FS Agri-Finance believe that having a meaningful conversation with our customers is the best way to help them reach their financial goals. We will show you how you can use financing as a risk management tool to help spread your costs and manage your cash flow. Our experts know the business of agriculture, are focused on what’s ahead and will ensure you’re ready for what’s next.
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fields within 14 to 21 days of planting as timing of weed management remains critical. Foliar-applied herbicides must be applied before Palmer amaranth plants exceed 4 inches in height. Fields should be scouted 7 to 14 days after application of a foliar-applied herbicide. If additional weeds emerge, a second application may be necessary. Hager also encourages farmers to physically remove any remaining Palmer amaranth plants before they reach the reproductive stage. “I really encourage farmers in 2015 and beyond to take a close evaluation of each field,” he said. “If you find populations (of Palmer amaranth, herbicide-resistant waterhemp or other troublesome weeds), begin to really think about diversifying how you manage each species. “One thing we know is
that anytime you use the same tactic or control measure over time, the effectiveness tends to decline,” he continued. “In fact, it can decline fairly rapidly.” The U of I recently partnered with Ohio State and Purdue University to compile a new Weed Control Guide. The guide previously hadn’t been updated in Illinois since 2008 due to a lack of resources. The new guide features 212 pages of weed management information, including weed response ratings for corn and soybean herbicides. It also includes information and research on managing weeds in small grain and forages along with more specific information about control recommendations for problem weed species. The Weed Control Guide can be found at {bulletin.ipm. illinois.edu/}.
Deadlines near for NRCS funding
Illinois farmers and forest landowners can apply for financial and technical assistance to help improve water quality. Farmers located in the following priority watersheds are eligible: • Douglas Creek Watershed in St. Clair County. • Crooked Creek-Bon Pas Watershed in parts of Richland, Wabash, Edwards and Lawrence counties. • Lake Vermilion Watershed in Vermilion County. • Lake De Revey Watershed in Vermilion County. • Painter Creek Watershed in Vermilion County. To apply, contact your local Natural Resources Conservation Service field office. Application deadlines are Feb. 20 and April 17.
Farm costs slow to adjust; acreage mix undecided Page 9 • Monday, January 19, 2015 • FarmWeek
Gary Schnitkey, University of Illinois Extension farm management specialist, doesn’t mince words when it comes to planting intentions for 2015. “The March 31 (USDA) planting intentions report could be more important (this year) than normal,� he said recently at the U of I Corn and Soybean Classic in Peoria. An historic shift could occur this year as some early projections indicate U.S. farmers will plant a record amount of soybean acres, possibly more than corn. If realized, it would be the first time U.S. farmers plant more beans than corn. A recent Farm Futures sur-
vey found planting intentions for corn and beans running neck and neck with estimates of 88.5 million acres of corn and 88.3 million acres of beans nationwide. The interest in more soybeans comes down to returns. The return from corn-aftersoybeans this year recently was pegged at $191 per acre compared to $206 per acre for beans-after-corn, Schnitkey noted. The other key to the acreage mix revolves around the fact that farm input costs have been slow to adjust to a dramatic drop in crop prices compared to recent years. “We’re projecting some moderation (of input costs), but not as much as revenue has
Farmers and agronomists can learn how to improve yields and profitability during a webinar series hosted by the Illinois Soybean Association. The webinar series, paid for with checkoff funding, begins at 10:30 a.m. Jan. 21. It will feature “Six Secrets of Soybean Success,� by Fred Below, University of Illinois professor of plant physiology and crop sciences. Below will provide updates from his 2014 field research results and help farmers plan for the 2015 growing season.
“Illinois growers are looking for information to help them improve their profitability in 2015,� said Don Guinnip, soybean farmer from Marshall and ISA Production Committee chair. Other webinars in the series will be at 10 a.m. Feb. 17 on nutrient planning with Howard Brown, GROWMARK director of nutrient management and environmental stewardship; and 10 a.m. March 4 on grain marketing tools with Dan Dempsey of AgYield and Kevin Kennedy of Walnut.
BY DANIEL GRANT FarmWeek
‘We do think there is a good chance prices will recover from the lows we s aw a t h a r ve s t time.’ — Pat Westhoff FAPRI director
come down,� Schnitkey said. “We have a cost squeeze.� Fertilizer prices are similar or even higher than last year at some locations, while seed costs remain strong for many of the popular varieties. Pesti-
cide prices also have been slow to adjust to lower farm income, according to Schnitkey. Operator and land returns for corn and soybeans could average just $254 per acre in 2014 and down to $227 per acre this year. If realized, farmers with those types of returns would absorb a net loss on cash-rent ground that exceeds the returns. Fortunately, farmers own about 30 percent of the ground they farm in Illinois, so Schnitkey estimates many farmers were in the black last year. Looking ahead, crop prices could hover in recent ranges rather than return to “golden era� prices from 2007 to 2012 because of large global sup-
plies and weakened demand for biofuels due to sharply lower oil prices, according to Pat Westhoff, director of the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri. “We do think there is a good chance prices will recover from the lows we saw at harvest time,� he said at the American Farm Bureau Federation annual convention in San Diego. “But we don’t have a very rosy view of the future.� FAPRI estimates 2015-16 crop prices could average $3.79 per bushel for corn and $8.78 for beans. Mike Orso, Illinois Farm Bureau director of News and Communications, contributed to this story.
Illinois Soybean Association hosts profitability webinar series Certified Crop Advisers attending the webinar can receive one continuing education unit in crop management. To register for the webinar, visit {www.ilsoy.org/ webinars}.
Upcoming webinars: Jan. 21: “Six Secrets of Soybean Success.� Feb. 17: Nutrient planning March 4: Grain marketing tools
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Resolve to eat better?
Dairy a key component of healthier diet
FarmWeek • Page 10 • Monday, January 19, 2015
BY DANIEL GRANT FarmWeek
The start of a new year typically ushers in a variety of resolutions, though many don’t even make it through January. One resolution typically at the top of the list for many people — a healthier lifestyle — can be achieved with some tweaks to the diet, according to Monica Nyman, nutrition educator for the St. Louis District Dairy Council. Nyman encourages people to implement small changes to their diets and lifestyles over time rather than attempt a massive overhaul or new fad diet. “What you eat is your diet,” Nyman told FarmWeek. “Instead of doing some fad or quick fix, which many people usually (abandon) and return to their old habits, I suggest making small changes over time.” A small change to the diet that can pay big dividends involves meeting the recommended three servings per day of dairy products. Milk, cheese and yogurt provide a powerful nutrient package of calcium, vitamin D and seven other essential nutrients, according to the nutrition educator. “Many people, when they think about dairy, think calcium,” Nyman said. “It has many other nutritional benefits.” But an average American currently consumes just two servings of dairy per day
rather than the recommended three. Nyman believes the lack of dairy in some people’s diets results from a growing number of beverage options along with convenient lifestyles in which people eat outside of the home a great deal. “Milk is not usually the No. 1 beverage at restaurants,” she said. Nyman recommends increasing dairy consumption with simple measures such as choosing milk, rather than water, to make oatmeal or even hot chocolate, or blend a fruit and yogurt smoothie with low-fat milk. She also recommends consuming more milk to replace sugary beverages, promote family meal times, focus on portion control and increase daily exercise to improve lifestyles. Adults should aim for at least 30 minutes of daily activity, while children and teens should get about an hour of physical activity each day. More information about the health benefits of dairy can be found online at {stldairycouncil.org}. Nyman will be a featured speaker at the 2015 Illinois Dairy Summit Jan. 20 in Freeport, Jan. 22 in Centralia and Jan. 23 in Bloomington. More information about that event can be found at the website {illinoismilk.org} or call 309-557-3703.
Photo by Cyndi Cook
Creamy Vegetable Chowder
2 T. butter 1 small onion, chopped 3 C. fat-free, reduced-sodium chicken broth 1 (16-ounce) bag frozen vegetable blend 2 C. 1 percent low-fat milk 1 C. shredded Cheddar cheese 1 t. basil 1/2 t. salt 1/4 t. pepper
Melt butter in large saucepan. Add onion and cook until tender, about 5 minutes. Stir in chicken broth and vegetables and bring mixture to a boil. Reduce heat and simmer, covered, 5 minutes. Puree 2 1/2 cups of vegetable and broth mixture in blender until smooth and return to saucepan. Stir in milk, cheese and seasonings, and simmer 10 minutes. Serve with additional shredded cheese, if desired. Yield: Makes 6, 1-cup servings
Submitted by: Makers of LACTAID® Brand Products
Nutritional Facts Calories: 229; Total Fat: 9 g; Protein: 13 g; Calcium: 25 percent of daily value
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U of I bioenergy efforts awarded USDA funds
Americans could become increasingly dependent on energy provided by perennial Miscanthus and biomass sorghum, thanks to the work of two University of Illinois crop sciences researchers. Erik Sacks and his team, including Steve Long, a U of I professor of plant biology and crop sciences, received about $1.5 million from the U.S. Department of Agriculture (USDA) and the U.S. Department of Energy (DOE) to continue improving breeding efficiency of the perennial grass crop Miscanthus x giganteous (Mxg). The crop has become an important feedstock in the emerging bioenergy industry. Mxg produces high yields, needs few inputs and adapts well to temperate climates. But with limited diversity in the crop, researchers know the survival of Mxg over time remains at risk. Through DNA sequencing, the researchers will obtain thousands of genetic markers in order to determine population structure. The researchers will then use field trials at multiple locations to evaluate yield potential and adaptation. Because Miscanthus can be crossed with sugarcane, this project will also provide materials and data that could help to develop more cold-hardy sugarcanes and energycanes. Professor Pat Brown at Standord University received $1.3 million for his ongoing work with biomass sorghum. Brown will be working with 600 lines of sorghum and looking for natural variation in composition that could be useful for breeding biomass sorghum. Brown and his team characterized 400 lines of biomass sorghum in a previous study and will add 200 more lines that have already been genotyped as part of a study on 1,000 biomass sorghum lines at Kansas State University. The sorghum lines will then be grown at U of I, and Markus Pauly, a researcher from Berkeley, will do the compositional work for the study. “A lot of people are waiting to see where bioenergy goes in the next 10 years. We know we can get a certain price for corn at the elevator, and there are certainly a number of ethanol plants. But not a lot of producers are using biomass at this point,” Brown said. “We hope we’re going to find something that really drives down the cost of production and really makes a difference. No one has really looked at this amount of detail before.”
Federal crop insurance may boost farmland values Page 11 • Monday, January 19, 2015 • FarmWeek
For 50 years, economists have shown that federal insurance programs affect farmland asset values. The latest study by Todd Kuethe, University of Illinois ag economist, and Jennifer Ifft, an economist at Cornell University’s Charles H. Dyson School of Applied Economics and Management, empirically shows the financial benefits of publicly-subsidized insurance programs may be bid into farmland values in a manner similar to price supports or direct payments.
Kuethe and Ifft completed the study because scant empirical research exists evaluating the potential link between publicly subsidized insurance programs, such as federal crop insurance, and farmland values. The economists looked at USDA’s pilot Pasture, Rangeland, and Forage Insurance program (PRF). Similar to federal crop insurance, PRF provides payments to policyholders based on agronomic conditions for the production of hay and forage. The program was
rolled out gradually beginning in 2007 for a set of pilot counties. The gradual rollout provided a “natural experiment” for the economists to examine the change in pastureland values before and after the introduction of the program. The change can be contrasted by that of pastureland values in counties in which the program was not available. Using data from the 200510 USDA National Agricultural Statistics Service June Area
Survey, the economists examined farmland and cash rental rate information from all operators within selected land segments. Kuethe and Ifft found the introduction of PRF bolstered pastureland values 4 to 9 percent on PRF-eligible land. The findings further suggest that publicly subsidized insurance programs, the principal policy mechanism of the 2014 farm bill, may have a comparable impact on farmland values, the economists concluded.
New resources planned for My American Farm website More than 1.5 million pre-K through fifth-grade students enhanced their agriculture knowledge through the My American Farm during the last four years. The American Farm Bureau Founda-
tion for Agriculture’s web-based resource at {myamericanfarm.org} offers 19 agriculturally themed games and more than 100 free educator resources, such as lesson plans, activity sheets and comics. Look for the website to soon boast a
new look, thanks to support from DuPont Pioneer, the program’s title sponsor. New resources will include two science/math-related games, pilot food science day camps and increased outreach to elementary school teachers.
Research: Duckweed doesnâ&#x20AC;&#x2122;t just benefit cattle, poultry No-till soybean meal or fish meal. New University of Illinois However, the greater concenresearch indicates duckweed may be a good source of proâ&#x20AC;&#x2DC;Duckweed yields more protein per tration of gross energy in lem- yields prove na protein concentrate contein for pigs. acre than soybeans.â&#x20AC;&#x2122; tained concentrations of Commonly known as duckchallenging digestible and metabolizable weed, Lemnaceae also can be â&#x20AC;&#x201D; Hans H. Stein FarmWeek â&#x20AC;˘ Page 12 â&#x20AC;˘ Monday, January 19, 2015
used for the production of ethanol, biodiesel and plastics. â&#x20AC;&#x153;Duckweed yields more protein per acre than soybeans,â&#x20AC;? said Hans H. Stein, a U of I professor of animal sciences. â&#x20AC;&#x153;It is easy to harvest, and because it grows in water, it doesnâ&#x20AC;&#x2122;t compete with food crops for land. This makes it a very exciting crop for a variety of uses, including animal feed.â&#x20AC;? Cattle and poultry already
U of I professor of animal sciences
eat lemna meal. But Stein noted no published data exists on the nutritional value of the protein concentrate fed to pigs. The concentrate is produced by extracting protein from de-oiled and dehydrated Lemnaceae biomass. It contains about 68 percent crude protein, Stein said.
Steinâ&#x20AC;&#x2122;s team conducted three experiments to determine the energy concentration and digestibility of energy phosphorus and amino acids in lemna protein concentrate fed to growing pigs. Results indicate the apparent total tract digestibility of gross energy was less in lemna protein concentrate than in
energy (4,076 and 3,571 kcal/kg) close to values for soybean meal (4,044 and 3,743 kcal/kg) and fish meal (3,878 and 3,510 kcal/kg). â&#x20AC;&#x153;The amino acids in lemna protein concentrate are digested well by pigs,â&#x20AC;? Stein said. â&#x20AC;&#x153;Our results indicate that if lemna protein concentrate is included in diets for pigs, amino acid digestibility and the energy value of the diets will not be compromised.â&#x20AC;?
2015 Scholarships IAA Foundation General Scholarship For students majoring in agriculture or agriculture related fields at any accredited institution in the state of Illinois. Three $7,500 scholarships, one $1,000 for a Western Illinois University student, two $1,000 scholarships and one $1,100 scholarship awarded. Illinois Farm Bureau Legacy of Leadership Scholarship For students beginning their junior year at a university in Illinois with an active agriculture program whose major is in a field related to the direct support of the agriculture industry and with a cumulative GPA of 3.4 or above. Priority given to those actively engaged in Illinois Farm Bureau activities. One $7,500 scholarship awarded. Dale E. Butz Scholarship For post-secondary student with a background in production agriculture majoring in agriculture or an agriculture related Ă&#x20AC;HOG 2QH VFKRODUVKLS DZDUGHG William J. Kuhfuss Memorial Scholarship Established to honor Mr. Kuhfuss for his many years of leadership in agriculture, one $1,000 scholarship will be awarded to a student with an agriculture background or working toward an occupation in or related to agriculture at a post-secondary school in the state of Illinois. Dorothy and Wilhelmine Ratermann Scholarship Open to any major, recipients must be a child of an Illinois Farm Bureau member and a resident of an Illinois county south of, and including, Calhoun, Greene, Macoupin, Montgomery, &KULVWLDQ 6KHOE\ &XPEHUODQG DQG &ODUN 7ZHQW\ Ă&#x20AC;YH scholarships awarded. Robert F. Rouse Scholarship Two $1,100 scholarships awarded to students majoring in agriculture or nursing at a post-secondary institution in Illinois with priority given to Lake county residents. Illinois Award Scholarship For graduating high school seniors accepted at a postsecondary institution and majoring in agriculture or an DJULFXOWXUH UHODWHG Ă&#x20AC;HOG 6WXGHQWV IURP &DVV +HQU\ 0RUJDQ and Stark counties will be given priority for this $1,000 scholarship. Walter J. and Martha J. Wills One $1,000 scholarship will be awarded to a student at Southern Illinois University with a major in any agriculture SURJUDP H[FHSW HTXLQH Ă RULFXOWXUH RU IRUHVWU\ ZKRVH SDUHQWV live on and operate a farm.
Applications due
February 1, 2015 Application period opens December 1, 2014 Greg Carney Scholarship This $1,500 scholarship honors the memory of Greg Carney, a Farm Bureau employee and University of Illinois graduate. Must be a University of Illinois student with an agriculture major who is actively engaged in production agriculture on a family IDUP RSHUDWLRQ DQG LV D FXUUHQW RU IRUPHU DFWLYH + PHPEHU Heartland NAMA Steven A Hammerschmidt Memorial Scholarship For junior or senior level college student majoring in agriculture or agribusiness whose career goal is agriculture marketing, sales or communications. One $1,000 scholarship awarded to a student at Illinois State University, and one $1,000 scholarship awarded to a University of Illinois student. Fletcher A. Gourley, Leonard Southwell, and Roger Capps Memorial Scholarship Established by Prairie Farms Dairy in memory of Mr. Gourley, Mr. Southwell, and Mr. Cappsâ&#x20AC;&#x2122; many years of leadership, VL[ VFKRODUVKLSV DUH DZDUGHG WR FKLOGUHQ RI FXUUHQW SDWURQV DQG VL[ VFKRODUVKLSV DUH DZDUGHG WR FKLOGUHQ RI current employees. Eligibility dates apply. Illinois Soybean Association Crop Science Scholarship Up to ten $4,000 scholarships awarded to incoming juniorlevel students whose major is crop production or a crop science discipline with an emphasis on soybeans at an approved Illinois university. For students planning on graduate school and a career in soybean research. St. Louis District Dairy Council Scholarship Two $1,000 scholarships awarded to dairy producers whose check off funding is directed to the St. Louis District Dairy Council. Producerâ&#x20AC;&#x2122;s children or spouse are also eligible. Open to any major, students must be enrolled in full time or part time study in an accredited community college, college or university. The Mission of the IAA Foundation, Illinois Farm Bureauâ&#x20AC;&#x2122;s charitable foundation is to fund education, research, DQG FKDULWDEOH DFWLYLWLHV WKDW EHQHĂ&#x20AC;W Illinois farm families and agriculture.
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No-till farming may not bring a hoped-for boost in crop yields in much of the world, according to an extensive new meta-analysis by an international team that included a University of Illinois crop sciences researcher. The conservation practice has been promoted worldwide in an effort to sustainably meet global food demand. But after examining results from 610 peerreviewed studies, researchers found no-till often leads to yield declines compared to conventional tillage systems. However, it still shows promise for yield gains in dryland areas. Cameron Pittelkow coauthored the study as a postdoctoral scholar at the University of California-Davis and now serves on the U of I faculty. Pittelkow teamed with other researchers from UC Davis, Northern Arizona University, USDA, China and Switzerland. After assessing more than 5,000 side-by-side observations, the researchers concluded that, on average, no-till negatively impacts yields at the global scale, yet several opportunities exist for more closely matching or even exceeding conventional tillage yields. Pittelkow noted yield reductions were minimized when the principles of crop rotation and residue retention were also practiced, highlighting the importance of implementing all three conservation agriculture principles as part of an integrated management system rather than no-till alone. Conservation agriculture is currently practiced on 125 million hectares of land globally, an area nearly as big as the total U.S. cropland. Three key principles guide the concept: minimizing soil disturbance, protecting the soil with cover crops or leftover crop residue, and rotating the crops.
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ROWN — Farm Bureau’s annual meeting will be at 7 p.m. Wednesday at the Farm Bureau office. Call the Farm Bureau office at 773-2634 for more information. UREAU — Farm Bureau’s annual meeting and dinner will be at 6 p.m. Jan. 29 at Wise Guys Bar and Grill in Princeton. Robert A. Easter, Ph.D., University of Illinois president, will speak on the outlook of agriculture. Cost is $10. Call the Farm Bureau office at 875-6468 to register. • Foundation scholarships are available to students who are Bureau County Farm Bureau members or a dependent of a Bureau County Farm Bureau member and are pursuing a degree in an ag-related field. Call the Farm Bureau office at 8756468 for more information. Application deadline is Feb. 27. • Farm Bureau is offering a 2015 summer internship to an agriculture student. Call the Farm Bureau office at 875-6468 for a list of internship duties, application or more information. Application deadline is Feb. 27. HRISTIAN — Farm Bureau will co-host a dinner farm bill session at 6:30 p.m. Jan. 27 at the University of Illinois Extension office in Taylorville. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 824-2940 for reservations by Friday. OOK — Farm Bureau will co-host a two-day beginning beekeepers class from 8:30 a.m. to 3:30 p.m. Saturday and Sunday at the Farm Bureau building. Cost is $75 for Farm Bureau or Cook DuPage Beekeepers Association members and $100 for nonmembers. Call the Farm Bureau office at 708-354-
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Tuesday: • FarmWeek: “The Early Word” • David Erickson, Illinois Farm Bureau vice president; Lauren Lurkins, IFB director of natural and environmental resources: Nutrient Loss Reduction Strategy • Eric Schmidt, EJS Weather Wednesday: • Richard Guebert Jr., IFB president: action priorities for Illinois farmers • Jim Bower, Bower Trading
Page 13 • Monday, January 19, 2015 • FarmWeek
3276 or email membership debbie @cookcfb.org to register by Monday. For more information, visit {cookcfb. org/buy-local/programs}. UMBERLAND — Farm Bureau will cohost a farm bill session at 7 p.m. Tuesday at Toledo American Legion. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 849-3031 for reservations by Monday. RUNDY — Farm Bureau will co-sponsor a dinner farm bill session at 6:30 p.m. Wednesday at Kinsman Community Center. Doug Yoder, IFB senior director of affiliate and risk management, and Ron Burling, Grundy County Farm Service Agency, will speak. Call the Farm Bureau office at 9426400 for reservations by Tuesday. ACKSON — Farm Bureau will sponsor a Concentrated Animal Feeding Operation informational dinner meeting at 6 p.m. Tuesday at Southern Illinois Livestock Facility. Laura Lurkins, IFB director of natural and environmental resources, will speak. Call the Farm Bureau office at 684-3129 for reservations. EE — Applications are available at {leecfb.org} for Books by the Bushel. Application deadline is Feb. 1. Call the Farm Bureau office at 857-3531 for more information. • Farm Bureau is compiling Lee County Farm Bureau history for the 100th Anniversary Celebration this summer. Please drop off items you are willing to share at the Farm Bureau office. Items will be returned if desired. Call the Farm Bureau office at 857331 for more information. ASON — Farm Bureau will host an on-the-road seminar at 9 a.m. Feb. 11 at the Farm Bureau office. Kevin Rund, IFB sen-
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• Tim Schweizer, Illinois Department of Natural Resources: hunting season update Thursday: • Andrew Wise, Ph.D., Olympia School District superintendent; Sen. Andy Manar, D-Bunker Hill: school funding Friday: • Mary Kay Thatcher, American Farm Bureau Federation: big data research and resources • Ivan Dozier, Natural Resources Conservation Service: national water quality initiative signups
ior director of local government, will speak. Call 5434451 to register by Feb. 4. ENARD — Farm Bureau will host a farm bill session at 7 p.m. Jan. 28 at New Salem Visitor’s Center. Doug Yoder, IFB senior director of affiliate and risk management, will speak. ONROE — Farm Bureau will co-host a farm bill session at 1 p.m. Wednesday at the Monroe County Annex. Stu Ellis, University of Illinois, will speak. Call the Farm Bureau office at 939-6197 for reservations by Monday. • For foundation scholarship applications, call the Farm Bureau office at 9396197 or email mcfarm@htc. net. Application deadline is Feb. 15. ONTGOMERY — Farm Bureau will host a spray test review from 10 to 11:30 a.m. Feb. 2 at the Farm Bureau office. Gary Letterly, University of Illinois Extension, will speak. Call the Farm Bureau office at 5326171 for reservations. EORIA — Farm Bureau will host a women in agriculture luncheon seminar at 10 a.m. Feb. 3 in the Farm Bureau auditorium. Roberta Boarman, Farm Business Farm Management, and Becky Frye, co-founder of Water Street Solutions, will speak. Call the Farm Bureau office at 686-7070 for reservations by Jan. 29. • Farm Bureau will host a farm bill session at 9 a.m. Jan. 28 in the Farm Bureau auditorium. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 686-7070 for more information. ERRY — Farm Bureau will host a market outlook luncheon meeting at noon Thursday at the Farm Bureau office. Dale Durchholz, AgriVisor senior market analyst, will speak. Call the Farm Bureau office at 3579355 for reservations by Monday. • Farm Bureau will sponsor a bus trip to the National Farm Machinery Show in Louisville, Ky., leaving at 5:30 a.m. Feb. 12 from the Farm Bureau parking lot. Cost is $55. Call the Farm Bureau office at 357-9355 to register by Feb. 5. T. CLAIR — Farm Bureau’s annual meeting will be at 6:30 p.m. Friday at Albert’s Restaurant in Belleville. Cost is $10. Call the Farm Bureau office at 2336800 for reservations by Monday. TARK — Foundation scholarships will be available to three applicants
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who are Farm Bureau members or a dependent of a member majoring in any field or a Stark County resident majoring in an ag-related field of study. Applications are available at {starkcfb.com/ foundation.php} or in the Farm Bureau office. Application deadline is March 31. ASHINGTON — Farm Bureau will cohost a market outlook breakfast meeting at 8 a.m. Thursday at Little Nashville Restaurant. Dale Durchholz, AgriVisor senior market analyst, and COUNTRY Financial representatives will speak. Call the Farm Bureau office at 327-3081 for reservations by Monday. • Farm Bureau’s annual meeting will be at 6:30 p.m. Jan. 29 at the Nashville Community Center. Chris Egelston, magician/comedian, will perform. Cost is $5. Call the Farm Bureau office at 327-3081 for reservations by Monday. • Farm Bureau will co-host farm bill meetings at 1:30 p.m. Wednesday and 7 p.m. Thursday at the Farm Bureau office. Call the Washington County Farm Service Agency at 3278862, ext. 2, for reservations by Monday.
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AYNE — Farm Bureau will host a market update luncheon at noon Wednesday at Frontier Community Center Foundation Hall in Fairfield. Dale Durchholz, AgriVisor senior market analyst, will speak. Call the Farm Bureau office at 8423342 to register. • Applications are available at {waynecfb.com} for the Young Leader Committee $500 scholarship. Applicants must be a Wayne County student majoring in an ag-related field of study. Application deadline is Feb. 28. HITE — Farm Bureau will host a market update luncheon at noon Wednesday at Frontier Community Center Foundation Hall in Fairfield. Dale Durchholz, AgriVisor senior market analyst, will speak. Call the Wayne County Farm Bureau office at 842-3342 to register. • Applications are available at {waynecfb.com} for the Young Leader Committee $500 scholarship. Applicants must be a Wayne County student majoring in an ag-related field of study. Application deadline is Feb. 28.
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Young Leaders learn about insurance
Nearly 40 Hancock County young farmers and their families attended the first of three financial planning sessions sponsored by the county Farm Bureau and COUNTRY Financial. During the session at Lake Hill Winery in Carthage, Landon White, Young Leader co-chair, gave a brief update on upcoming Young Leader events. COUNTRY financial representatives then covered basic information young farmers need to know about insuring their property, equipment, crops and more.
BY KRISTIN HULS
Two additional sessions will be held Feb. 12 on “Insuring Yourself and Your Family,” and a March 12 session will cover “Insuring Your Future.” The sessions will focus on life, disability and longterm care insurance, and investment products and strategies to ensure financial stability in the future. For more information, contact the Hancock County Farm Bureau at 217-357-3141.
Kristin Huls serves as Hancock County Farm Bureau manager.
USDA makes available $18 million in grants
USDA announced the availability of more than $18 million in grants available to help educate, mentor and enhance the sustainability of the next generation of farmers through the Beginning Farmer and Rancher Development Program. The funding was authorized by the 2014 farm bill. Deputy Ag Secretary Krysta Harden described the program as “critical for cultivating the next generation of farmers and ranchers, who will be integral to sustaining America’s agricultural future.” “Leading community and service organizations are on the front lines when it comes to identifying and training new farmers and ranchers,” she said. “Strong partnerships with these groups are the key to our success.” Organizations with programs to train beginning farmers and ranchers — including workshops, educational teams, training and technical assistance — can apply. Applications are due March 13. USDA’s National Institute for Food and Agriculture (NIFA) administers the program. A webinar for interested applicants will be held from 1 to 3 p.m. Feb. 11. A recording will be posted on the NIFA website after the event.
FarmWeek • Page 14 • Monday, January 19, 2015
Smooth winter farm operations depend on unplugged fuel filters
Plugged diesel fuel filters can be a common wintertime problem. Filter plugging can reduce horsepower or stall engines, resulting in unexpected downtime. While it’s preferable to catch problems at the storage tank, sometimes that’s not always feasible. When fuel won’t pump or filter plugging occurs, it’s comChris Salrin mon to blame the products — either the fuel or the cold flow additives. Yet in many situations, the fuel or additives aren’t the culprits. Research has shown that cold flow BY CHRIS SALRIN
additives can be very effective at reducing the occurrence of gelled fuel and icing. However, for these products to work as intended, they should be blended into the base fuel at 10 F to 15 F above the base fuel cloud point. Under extremely cold conditions, this is best accomplished at the terminal where the fuel is at its warmest temperature. Treating fuel when it’s too cold, i.e., below the recommend 10 F to 15 F above cloud point, compromises the additive’s effectiveness and can make the difference between uninterrupted operation or frustrating downtime. Fuel quality management best practices are valuable year round, and even more so in winter. In addition to gelled
fuel, ice and microbes can plug filters. Petroleum- and bio-based diesel fuels contain moisture. Even when checked with moisture detecting paste, there may be emulsified moisture that goes undetected. As fuel temperatures drop, the fuel holds less moisture and, as a result, water may settle to the bottom of the tank. If enough water reaches the dip tube, it may be pumped out, and cause filters and fuel lines to ice. Ice can plug filters similar to gelled fuel, resulting in the same unwanted downtime. Should all else fail, products, such as Re-Flow G, are available for emergency treatment. Per manufacturer’s instructions, these products can be mixed with diesel fuel and poured
directly into the fuel filter assembly after removing all the visible wax. These products can also be used in treating tanks with gelled fuel. Please note that such rescue treatments are not designed for long-term use and should be used only in emergency or temporary situations. Maintaining fuel quality is crucial for ensuring tanks and equipment operate properly during cold weather. Your FS Energy Specialist is a knowledgeable source for the information and products you need to keep your operation running smoothly in any season.
Chris Salrin serves as GROWMARK’s energy sales and marketing director. His email address is csalrin@growmark.com.
Economist: Lower energy prices positive for U.S. beef, pork demand are very supportive (of meat demand),” Tonsor said last week at the American Farm EIA projects 2015 prices to average $2.60 per gallon for gasoline (down from $3.37 last year), $3.07 for diesel (down from $3.82 a year ago), and $62.75 per barrel for U.S. crude oil (down from $93.82 in 2014). Bureau Federation annual convention in San Diego. “Disposable incomes are higher when you have lower gas prices.” U.S. fuel prices the first
M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$58.15 $47.51 40 lbs. (cash) $67.00-$93.00 $83.40 Receipts
This Week 76,441 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 80,767
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $72.00 $72.72 -$0.72 $53.28 $53.81 -$0.53
USDA five-state area slaughter cattle price (Thursday’s price)
Steers Heifers
This week $163.60 $164.03
Prev. week $168.00 $168.00
Change -$4.40 -$3.97
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 $226.39 $235.22 -$8.83
Lamb prices Negotiated, wooled and shorn, 121-166 lbs. for 144.54-174 $/cwt. (wtd. ave. 155.47); wooled and shorn load 175 lbs. for $164/cwt.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/08/2015 67.6 8.8 19.7 1/01/2015 51.7 9.4 21.2 Last year 59.4 25.8 21.3 Season total 1199.4 519.3 497.9 Previous season total 984.3 768.9 494.2 USDA projected total 1760 925 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
week of January were down an average of $1.12 per gallon for regular gasoline and 77 cents for diesel fuel compared to the same time last year, according to the Energy Information Administration (EIA). EIA projects 2015 prices to average $2.60 per gallon for gasoline (down from $3.37 last year), $3.07 for diesel (down from $3.82 a year ago), and $62.75 per barrel for U.S. crude oil (down from $93.82 in 2014). Propane and heating oil costs also are down considerably from last year. Meanwhile, the U.S. gross domestic product recently posted its largest gain in more than a decade with 5 percent annualized growth from the second to third quarters. “There are a lot of reasons to be optimistic about meat demand in 2015,” Tonsor said. The economist projects a second consecutive year of record returns for cow/calf producers due to strong demand and tight beef cattle supplies. He also projects another year of positive margins for pork producers, although hog prices could moderate this year. “We still have tight (pork) supplies, but producers are in the process of mitigating that (by expanding herds),” Tonsor said. “We will have more pork in 2015, so it looks like hog prices will come down some.” Broiler producers also are in the process of expanding chicken supplies. Overall, Tonsor projects meat demand this year could be about the same as last year. If realized, the pace of demand growth, however, could level off. Pork demand last year increased 6 to 8 percent.
Mike Orso, Illinois Farm Bureau director of News and Communications, contributed to this story.
Agriculture Plates Help Teach Kids When you buy these specialty ag plates you are not only supporting agriculture, but also Illinois Agriculture in the Classroom. A portion of your fee will go toward this statewide program dedicated to teaching students where their food, fiber, and fuel come from.
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Lower fuel prices could play a key role this year in helping sustain U.S. meat demand. Livestock and meat prices last year raced to record highs due to tight supplies. But the situation didn’t snuff out demand as most consumers so far remain willing to pay more for quality meat cuts from the U.S., according to Glynn Tonsor, ag economist/assistant professor at Kansas State University. And that trend could continue this year as lower energy prices and positive economic gains in the U.S. could beef up consumer spending at grocery stores. “The lower energy prices
Go to iaafoundation.org/agtag for more details
January USDA reports: What did we learn?
The Jan. 12 USDA reports always set the stage for market activity in grains for the next two to three months. Even though the soybean market broke hard after the report, the new data didn’t cast significant new light on the fundamental structure. The same could be said for corn and wheat. As we see it, there were two notable ingredients in the reports. First, the winter wheat planting estimates were well under trade expectations. Second, the new soybean production forecast didn’t match up with the Dec. 1 soybean stocks. The trade’s inability to forecast winter wheat plantings is almost becoming laughable. There’s been a remarkable consistency during the last 10 to 15 years of USDA estimating winter wheat plantings below what the trade anticipates. AgriVisor was the low end of expectations, but the USDA estimate was 550,000 acres below us. The big miss by the trade was for hard red winter wheat plantings. Soft red plantings in Corn Belt states were lower than expected, but still within the low end of expectations. Both price and fall harvest/weather contributed to the lower soft red plantings this year. While dryness may have been a part of the decline in hard red plantings, this year’s lower insurance guarantee ($6.30) may have played a significant role as well. While there’s scant statistical
support, we can’t help but wonder if the low insurance guarantee and poor production economics caused some land to not be planted. It could be indicating something for corn and soybeans in 2015 if that is the case. As it stands, there’s reason to think the spring insurance guarantees for corn and soybeans could be near $4.00-$4.25 and under $10, respectively. Those are well below the $5.65 and $12.87 available two years ago, and even those weren’t the highest producers have seen in recent years. The other interesting situation was the discrepancy between the revised soybean production estimate and the Dec. 1 stocks number. Because usage for soybeans is known, the differential should be within “historical” limits. But this year, the difference between the two implies the revised production estimate could be 40 million bushels too high. That is curious, given USDA revised yield and production higher, the latter by 11 million bushels. But discrepancy between the calculated stocks and the actual USDA number has increased sharply the last couple of years with the more robust fall/winter export program. It may be that there is some “overcounting” with the larger supply of soybeans in transit. We may have to wait until the March or June stocks report to shed more light on the situation to make a more informed judgment. But if it holds up, it may suggest the supply of U.S. soybeans may be less robust than the trade believes. And given the demand pace, that’s not to be ignored.
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Corn Strategy
ü2013 crop: Nothing has changed to alter our long-term constructive outlook. But don’t expect the market to reach long-term upside targets until spring at the soonest. ü2014 crop: As expected, the short-term trend turned down. While it’s possible last week’s low might have been an early 20-week low, downside risk will remain until March futures close above $3.95 at a minimum. Even then, during the next few weeks, expect choppy price action. Use rallies to $3.90 on March to make needed sales. vFundamentals: In general, the passing of the January USDA reports leaves the market in a vacuum with little to change the fundamental structure until the March 31 Grain Stocks and Prospective Planting reports. Given the focus on the scope of plantings in 2015, the new-crop supply/demand forecasts USDA will release at its Feb. 20 outlook meeting could have some impact. Otherwise, the key price influences will likely come from energy, currency and equity markets.
Page 15 • Monday, January 19, 2015 • FarmWeek Cents per bu.
Soybean Strategy
ü2014 crop: Even though the pace has slowed, demand remains historically strong. South American weather will be the key influence during the next two to three months. If it remains good, prices will likely erode. But if it deteriorates, prices could quickly turn up. That’s why we prefer to maintain oldcrop ownership. ü2015 crop: We have no interest in pricing 2015 crop at these levels. The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: With the passing of the Jan. 12 USDA reports, South American weather will be the most important market influence. Although far from perfect, weather has been relatively good in both Brazil and Argentina, although the recent warmer, drier pattern in the former is causing some concern. Harvest won’t become consistently active until the end of the month. Financial and currency mar-
kets are having a lot of impact on the day-to-day market activity as well.
Wheat Strategy
ü2014 crop: Old-crop sales should be 75 percent complete. We will look for better opportunities for new sales recommendations. ü2015 crop: New-crop wheat should be 25 percent priced. Wait to make catch-up sales if you are not sold up to the recommended level. vFundamentals: Last week’s USDA reports featured a mixed bag of data for wheat. Futures sold off on the view that higher U.S. ending stocks outweigh smaller
winter wheat plantings. Export markets remain active. U.S. exporters still fail to compete for the larger deals, but they continue to book just enough commitments to keep pace with USDA’s current 925 million bushel target. Condition concerns have faded somewhat for U.S. and Russian winter crops now that temperatures are expected to moderate. Harvest in the Southern Hemisphere is wrapping up with good results. The overarching theme is that global stocks are plentiful, and there isn’t yet a reason for concern about new-crop prospects.
ILLINOIS PROUD FarmWeek • Page 16 • Monday, January 19, 2015
Team Illinois Farm Bureau spirit alive and well
Team Illinois Farm Bureau set the bar high for 2015. President Richard Guebert Jr. nodded and smiled when I said, “It will be hard to top this year,” during the American Farm Bureau Federation annual convention KAY last week. And SHIPMAN that happened before he was elected to the AFBF board and Illinois Farm Bureau’s policy proposals passed. Among the IFB delegation, we seemed like a school team with individuals competing but contributing to a group score. Picture Illinois folks spread around a room “so we don’t all bunch up” to listen and support Christian County’s Caleb and Kimberly May give their Excellence in Agriculture presentation to three judges. IFB Young Leaders, staff and other members providing “scouting reports” on other states’ discussion meet com-
petitors, while many of the home-state crowd backed Woodford County’s Sean Arians all the way to the Final Four. Handshakes and good luck wishes to Livingston County’s Matt and Jenna Kilgus heading to their early morning Top 10 Young Leader Achievement interview. When Sean received his key for a new truck and the Kilguses beamed standing beside a new tractor, Illinois showed up with smiles, pats on the back and some happy tears. Those gracious young winners shared their success and made us feel a part of their achievement. Despite the distance from home, we were never too far from a friendly face, a shared laugh or a quick chat. With an official count of 365 IFB attendees, no wonder I always saw someone I knew in San Diego. Of course, farmers, especially those with livestock, can’t leave the farm unless someone stays home to make
sure the pipes don’t freeze, the grain dryers run, and the livestock are fed and watered. Likewise, Farm Bureau staffs — both state and county — depend on colleagues to answer questions, conduct business and generally keep the offices humming while they’re away. I know several phone calls and emails for information and support were exchanged between San Diego and our home offices. But the support didn’t stop with traditional Farm Bureau activities. Read Nancy Waters’ comments about the support Golden Bridges received in the first Rural Entrepreneurship Challenge, styled after “Shark Tank.” As one of four national finalists, those women did a great job representing Illinois, and the people from home let them know. We tried to share the news and experiences as much as possible to keep Illinoisans at home up to date, especially on our Young Leader successes, and to give them a slice of
Above, Illinois Farm Bureau Directors Bob Gehrke of Elgin, left, and David Serven of St. Augustine, center, listen as fellow IFB Director Chad Schutz of White Hall speaks during policy debate at the American Farm Bureau Federation annual convention in San Diego. Below, IFB President Richard Gueber Jr., right, confers with IFB Vice President David Erickson. Efforts from IFB and county Farm Bureau leaders, staff and members in California, and those back home, contributed to home-state team spirit. (Photos by Ken Kashian)
convention life. Even now, sharing of those images, tweets, and Facebook posts and messages continues. One person told me she felt like she was there. How does Team Illinois Farm Bureau keep going strong and channel this energy into the next challenge?
Who knows how IFB tops the pride of this year’s delegation to next year’s AFBF convention? But if this year’s team spirit is any indication, I bet we’ll try.
Kay Shipman serves as FarmWeek and FarmWeekNow. com legislative affairs editor.
Lend your voice in telling agriculture’s story
I’m a farmer and a mother. Leaving my farm and family isn’t exactly something I treasure. It is, however, an investment I make to share the story of my American farm family. I am not alone in this mission. As a former Face of Farming and Ranching for the U.S. Farmers and Ranchers Alliance, I introduced people to what farmers do and why. This is not as simple as you might think. Truth is, it’s rare to find people who have a CHRIS solid understanding of CHINN what farming looks like today. With most Americans at least three or four generations removed from the farm, few have connections
with the people who bring food to their tables. Thanks to USFRA’s Faces of Farming, I connected with people far outside of agriculture and on a broader scale than I once did through my blog and social media platforms. I once met with reporters along the Northeast corridor to discuss issues that are important in both rural and urban America. The use of antibiotics on farms and ranches was a recurring theme. But as I told them, antibiotics are just one of the many tools we have to responsibly care for our animals. Veterinarians and animal nutritionists play a key role in determining our animal care plan. Every decision we make regarding animal health is made under their
guidance. Farmers and ranchers are always looking for ways to improve the care we give our animals. I remember joining a food discussion panel with Bo Stone, another past Face of Farming, along with a chef for an international hotel chain, and an independent hotel and restaurant owner. Bo and I shared our stories about the crops we grow and animals we raise on our farms. We explained why we do certain things to produce food and how our farms have changed during the last 50 years. This was also a great learning opportunity for us as farmers to hear about what goes into the decisionmaking process when chefs and restaurant owners buy food for their menus. Through USFRA and other programs, farmers are sharing their sto-
ries like never before. Our platform for engagement has been elevated. I am finding that our fellow citizens, our friends and neighbors are receptive to learn how much we care for the land, animals and environment. Agriculture must stand united in telling its story, but the story must be told in the genuine voices of individual farmers. USFRA’s Faces of Farming gives us that chance. I look forward to hearing more stories from those who follow in lending their unique voices and the credibility that only comes from a life on the land.
Chris Chinn served as one of USFRA’s Faces of Farming and Ranching and is a Missouri Farm Bureau board member. She and her husband, Kevin, are fifth-generation farmers, working with his parents and brother.