Farmweek january 26, 2015

Cover crops combined with nitrogen applications produced higher yields in an ISU study. page 3

Monday, January 26, 2015

Tossing aside your winter coat may be a doable plan given the latest weather outlook. page 4

How does your dairy stack up?

Check out results from a recent University of Illinois study. page 5

Two sections Volume 43, No. 4

BARREN WINTER LANDSCAPE

Scant snowfall remains visible around grain bins in southern McLean County. State climatologist Jim Angel says mild winter conditions could remain the norm. Read more about below-average snowfall on page 4. (Photo by Cyndi Cook)

WOTUS, Section 179 among IFB top priorities

BY DEANA STROISCH FarmWeek

Periodicals: Time Valued

Ditching the proposed rule defining “waters of the U.S.” and extending Section 179 tax deductions at the $500,000 level for another year rank among Illinois Farm Bureau’s top federal legislative priorities this year.

IFB’s Board of Directors last week approved 10 national priorities during its monthly meeting in Bloomington.

Adam Nielsen, IFB’s director of national legislation, said there may not be much time to get controversial issues passed. Presidential politics could make it

difficult for the GOP-led Congress and the White House to agree on much — particularly after the August recess.

“Last year was very productive,” Nielsen said. “This year we have to remind people you have to have some patience.”

IFB’s 2015 federal priorities include: • Ditching the proposed “waters of the U.S.” rule. A priority issue from last year, IFB will continue to fight the proposal introduced by the Environmental Protection Agency (EPA) and Army Corps of Engineers. Opponents say the proposal expands federal jurisdiction

beyond what Congress intended.

The current federal spending bill repealed the “interpretive rule” related to the “waters of the U.S.” proposed rule.

Agricultural groups said the interpretive rule would have required voluntary conservation practice standards to become mandatory.

EPA expects to publish a final rule this spring.

“We expect to see a lot of the same legislation introduced that was in the last Congress, and hopefully, we’ll be able to address this through the appropriations process,” Nielsen said.

• Getting Section 179 at the $500,000 level extended for at least another year.

Congress last month approved a oneyear, retroactive extension of expired tax breaks, including Section 179. The deduction limit dropped back to $25,000 as of Jan. 1.

IFB plans to encourage the new Congress to extend the provision at the $500,000 level for at least another year.

IFB supports making the provision permanent, but Nielsen said that likely won’t happen under the current president.

IFB opposes president’s tax proposals

BY DEANA STROISCH FarmWeek

Illinois Farm Bureau opposes President Barack Obama’s proposals to increase the capital gains tax and repeal the “stepped up” provision, recommendations outlined during his State of the Union Address.

IFB President Richard Guebert Jr. urged Congress to consider those proposals “dead on arrival.”

Meanwhile, the organization supports the president’s call for Congress to pass Trade Promotion Authority (TPA) and normalize diplomatic relations with Cuba.

The White House said Obama’s tax plan attempts to simplify the tax code and make it fairer by eliminating “unfair loopholes that are only available to the wealthy and big corpora-

See Priorities, page 7

tions.” His proposal calls for increasing the total capital gains and dividend rates to 28 percent.

Guebert said the capital gains hike would “dramatically increase” the tax bill for any farmer who sells land, buildings or breeding livestock.

“The impact of capital gains taxes on farming is significant because production Richard Guebert Jr. agriculture requires large investments in land and buildings that are held for decades, during which land values can more than triple,” Guebert said.

See Tax, page 2

www.facebook.com/illfarmbureau

Quick Takes

FarmWeek • Page 2 • Monday, January 26, 2015

APPLY FOR IAA FOUNDATION SCHOLARSHIPS — Agriculture students, and Illinois Farm Bureau members and their children have until Feb. 1 to apply for IAA Foundation college scholarships.

Seventy-four scholarships, ranging from $1,000 to $7,500 per year, will be awarded through the foundation, Illinois Farm Bureau’s charitable arm. Students receiving IAA Foundation Scholarships who are enrolled in the Agriculture Department at Illinois State University or Southern Illinois University may be eligible for additional scholarship funds from their respective university.

All applicants must be high school seniors accepted for enrollment or students already enrolled at an accredited college, university or community college. Scholarships are awarded for exceptional academic ability, leadership and financial need. Previous winners of an IAA Foundation scholarship are eligible to apply again at {iaafoundation.org}.

ILLINOIS CLAIMS SOY TITLE — For the second straight year, Illinois soybean growers can claim the title of top soybean-producing state, according to USDA estimates.

The Jan. 12 USDA Crop Production Report estimated Illinois farmers raised 547.7 million bushels of soybeans last year on 9.8 million harvested acres with an average yield of 56 bushels per acre. Iowa ranked second.

“Achieving this distinction for the second year in a row is confirmation that Illinois has become a nationwide leader in soybean production,” said Craig Ratajczyk, Illinois Soybean Association CEO. “In addition to our ongoing work to build demand both domestically and internationally, we support our growers with a wide range of programs.”

ILLINOIS SECURES SCHOOL, ROAD FUNDS — Illinois will receive $230,525 to support local schools and roads through the 25 Percent Fund Act of 1908.

Forty-one states will share $50 million. Illinois received $263,427 last year from the fund. Seven-year rolling averages of receipts from national forests located in each state are required to calculate the 25 percent payments for the benefit of public schools and roads.

COUNTRY EARNS CUSTOMER SERVICE AWARD — COUNTRY Financial Auto and Home contact centers have earned the Certified Contact Center Program certification from J.D. Power for commitment to customer service.

“The certification signifies the importance we place on making sure our customers have a seamless experience when they call our Customer Service Center,” said Rob McDade, COUNTRY vice president of customer service.

The certification occurred following a yearlong process, which included more than 100 audits of COUNTRY business practices and random surveys of customers who called auto and home contact centers in Bloomington and Alpharetta, Ga. J.D. Power, a global marketing information services company, also evaluated customer service representatives on their courtesy, knowledge and concern for the customer, promptness and timely resolution of the problem or request.

(ISSN0197-6680) Vol. 43 No. 4 January 26, 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.

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

Durbin: Change in U.S. policy brings hope

BY DEANA STROISCH FarmWeek

Just a month after President Barack Obama announced changes in Cuban policy, U.S. Sen. Dick Durbin, D-Ill., said a “renewed sense of hope” can be found there — “for the first time in a long time.”

Durbin joined a handful of elected leaders on a trip to Cuba recently, the first visit by a congressional delegation since Obama announced changes in December. Others on the trip included Sens.

Chris Van Hollen, D-Md.; Patrick Leahy, D-Vt.; Sheldon Whitehouse, D-R.I.; Debbie Stabenow, D-Mich.; and Peter Welch, D-Vt. The delegation met with Cuban government officials, members of the opposition and civil society, and officials from the U.S interests section in Havana.

Durbin called it a “very productive trip.”

“Re-establishing travel and trade relations will mean real benefits for people in Illinois and across the country from farmers to small businesses to working families,” Durbin said. “But this policy change is about more than just travel and trade — it’s about opening Cuba to new ideas, new values and improved human rights that our 50-year-old policy of exclusion could not achieve.”

He said the United States has to be “realistic about the prospects for fully lifting the embargo on Cuba with legislation in a Congress where a single senator can scuttle it.”

IFB selects delegate for Cuba trip Illinois farmer Thomas Marten will serve as Illinois Farm Bureau’s delegate on a five-day trip to Cuba in March.

U.S. Agriculture Coalition for Cuba (USACC) plans a “Learning Journey to Cuba” March 1-5. USACC describes the trip as the “first major U.S. business delegation to Cuba” since President Barack Obama announced plans to normalize relations with Cuba in December.

The group will learn about the state of Cuban agriculture, economic and commercial strategies, and U.S. and Cuban policies affecting agriculture trade, among other things.

Marten works on his family’s 2,000-acre corn and soybean farm in Montgomery and Macoupin counties. He also participated in IFB’s 2012 Cuba Market Study Tour, IFB’s Young Leaders trip to Brazil in 2013 and the 2011 U.S. Grains Council I-CAL tour of Panama and Colombia. He serves as regional director of the North Central U.S. for FarmHouse International Fraternity and is alumni advisor for the fraternity’s chapter at Southern Illinois University (SIU).

He also serves as a member of the Illinois Corn Growers Association, Illinois Soybean Association, Illinois State Rifle Association and SIU Alumni Association.

“But the American people are ready for this change, and my colleagues and I are committed to getting it done,” he said.

Agricultural groups and businesses across the country have urged Congress to end the trade embargo with Cuba altogether.

Farmers have been able to export products to Cuba, but financial restrictions have made it difficult to compete in the market.

“Illinois Farm Bureau will continue to work toward expanding trade with Cuba through our membership in the Illinois Cuba Working Group and through the recently formed U.S. Agricul-

Tax “The higher the capital gains rate, the greater disincentive there is for owners to sell. And that would make it more difficult for new farmers to get started and prevent established farmers from expanding their operations to include the next generation.

“In general, high capital gains rates hinder a farmer’s ability to react quickly to market signals and change their business model by selling assets and reinvesting.”

Farmers usually pay the top rate of 20 percent plus the 3.8 percent Medicare surtax because their capital gains are realized in a single year, for example, when a farm is sold, he said.

Obama also suggested repealing the “stepped up” provision, which IFB says protects farmers and small business owners from large tax bills when they inherit family businesses. The president’s proposal will ultimately result in a new tax on farmers, Guebert said.

“The Obama tax plan states that any new tax would not be due on inherited small family-owned and operated businesses until the business is sold,” he said. “But no definitions of ‘small’ or ‘family-owned’ are provided, so it is uncertain how many farmers would be protected from paying capital gains taxes when a family member dies, not to mention the complexity this adds to an already comContinued from page 1

ture Coalition for Cuba,” said Adam Nielsen, IFB national legislative director. “In addition, we will work to build congressional support to further ease restrictions on trade, financing and travel to Cuba with the ultimate goal of ending the embargo, which seems increasingly like an outdated relic of the Cold War.” Obama’s plan to re-establish diplomatic relations with Cuba also calls for opening an embassy in Havana in the coming months, easing travel and financial restrictions, and reviewing Cuba’s designation as a “state sponsor of terrorism.”

The new financial and travel rules went into effect Jan. 16.

plex and confusing federal tax code.”

Other highlights of Obama’s speech include: • TPA: Obama urged Congress to help “level the playing field” and pass TPA. IFB supports TPA, which would allow the president to negotiate trade deals without Congress changing them. Congress would still be able to vote up or down on trade agreements, but would not be able to amend them.

“I’m the first one to admit that past trade deals haven’t always lived up to the hype, and that’s why we’ve gone after countries that break the rules at our expense,” Obama said.

“But 95 percent of the world’s customers live outside our borders, and we can’t close ourselves off from those opportunities. More than half of manufacturing executives have said they’re actively looking at bringing jobs back from China. Let’s give them one more reason to get it done.”

• Cuba: Obama described the United States’ Cuba policy as “long past its expiration date.”

“Our shift in Cuba policy has the potential to end a legacy of mistrust in our hemisphere, removes a phony excuse for restrictions in Cuba, stands up for democratic values, and extends the hand of friendship to the Cuban people,” Obama said. “And this year, Congress should begin the work of ending the embargo.”

IFB supports ending the trade embargo.

Interactive website makes finding pesticide-sensitive sites easier

Page 3 • Monday, January 26, 2015 • FarmWeek

BY KAY SHIPMAN FarmWeek

ISU study shows cover crops influence yields, nitrogen use

Illinois State University assistant soil science professor Shalamar Armstrong, center in red shirt, answers questions about his nitrogen research study near Lexington during a tour last summer. (FarmWeek file photo)

BY KAY SHIPMAN FarmWeek

Cereal rye and tillage radishes combined with different nitrogen applications resulted in higher yields and greater nutrient availability for seedlings, according to Illinois State University (ISU) research.

Shalamar Armstrong, ISU assistant soil science professor, discussed his research during the Illinois Fertilizer and Chemical Association annual convention in Peoria last week. Armstrong conducts his studies at the ISU research farm near Lexington.

“We saw significant differences in corn yields (in fields with cover crops) and a per-acre profit of up to $30 (per acre) with some cover crops,” Armstrong said.

He tested five treatments along with a control plot with no fertilizer or cover crop.

The treatments included: a spring split application; a spring split application with cover crops; a fall split application, and a fall split application that involved strip-tilling anhydrous ammonia into a mix of cereal rye and tillage radishes.

The three-year average showed “significant difference” of available nitrogen in early and late spring between fields with cover crops and those without, Armstrong said.

Armstrong calculated the 2014 fall cover crop biomass nitrogen uptake measured 23 pounds of nitrogen. “After 50 days of growth, the cover crop already is having an impact on nitrogen,” he said.

An interactive web-based map, known as Driftwatch, now offers pesticide applicators seamless access to pesticide-sensitive locations across Illinois.

“More specialty crops are showing up in a massive sea of corn and soybeans,” said Reid Sprenkel of FieldWatch Inc. FieldWatch, a nonprofit corporation, now operates the multistate online mapping service previously operated by Purdue University.

Through Driftwatch, farmers and beekeepers in 13 states voluntarily register, map pesticide-sensitive locations online and provide their contact information at no charge. Commercial operations, not home gardeners, comprise the intended users.

Pesticide applicators may register and sign up for electronic notification when sensitive locations are registered within their service areas. If several new locations register the same day, registered applicators will receive one email that day with information about the new locations, Sprenkel noted.

Currently, Driftwatch offers locations of more than 20,000 acres of Illinois specialty crops; 8,000 acres of Illinois organic crops; and several thousand bee hives, including 750 mapped active hives, according to Sprenkel.

During the Illinois Fertilizer and Chemical Association annual convention, Sprenkel encouraged pesticide applicators to register and take advantage of a newly released feature. Applicators who register may download the Driftwatch data or use their software provider to livestream the information to their company system, Sprenkel said.

“This will happen seamlessly with live updated data,” he added.

View more information or register sites and hives by visiting {driftwatch.org}.

Fields sought for nitrogen trials

On-farm nitrogen rate trials across the state demonstrate nitrogen efficiency and best management practices.

Any farmer interested in participating in an on-farm trial should contact Dan Schaefer, director of nutrient stewardship with the Illinois Council on Best Management Practices, or Emerson Nafziger, University of Illinois crop sciences professor.

Schaefer may be reached at dschaefer@illinoiscbmp.org or 217-202-5173, or Nafziger at ednaf@illinois.edu or 217-3339658.

Nafziger’s 2015 nitrogen advice? SIU study shows late-season Common sense, N-rate calculator nitrogen applications feasible nitrogen treatments, which resulted in much yield variability. Nafziger The University of Illinois’ Emer- also explored 13 on-farm nitrogen son Nafziger focused on essentials trials on fields of continuous corn. when dispensing Nafziger compared optimum advice on corn nitrogen rates as determined by nitrogen needs in 2014 research trial results with 2015. those predicted by an online nitro“There’s not one gen rate calculator. silver bullet. Don’t View {bit.ly/1xFxzFS}. assume there are The corn nitrogen rate calculator advantages to lateestimates the maximum return to applied nitrogen. nitrogen (MRTN).

Don’t assume the But if university researchers had Emerson Nafziger loss of early-applied used MRTN projected nitrogen nitrogen, but be rates instead of those ready,” the crop sciused in the trials, FarmWeekNow.com ence professor told they would have lost Visit FarmWeekNow.com to view Illinois Fertilizer and a video interview with Emerson about $20 per acre Chemical Association Nafziger on N recommendations and harvested about for 2015. annual convention 7 fewer bushels, participants last week Nafziger shared. in Peoria.

However 2014 remained “a good “I’m a fan of common sense and year for corn-on-corn,” he added. think we should use more of it,” he Despite the variance between triadded with a smile. al nitrogen rates and those recomNafziger reported on a suite of mended by the nitrogen calculator, in-field nitrogen studies at U of I Emerson referred to MRTN as “still research farms in DeKalb, Monthe best (nitrogen) guess we’ve mouth and Urbana. He studied 15 got.”

BY KAY SHIPMAN FarmWeek

BY KAY SHIPMAN FarmWeek

Southern Illinois farmers may rely upon a late-season nitrogen application although no clear-cut method surfaced from firstyear results, according to Rachel Cook, Southern Illinois University-Carbondale (SIUC) assistant soil fertility professor.

Cook, who grew up on a Johnson County cattle farm, reported her research results at the Illinois Fertilizer and Chemical Association annual convention last week in Peoria. The Illinois Nutrient Research and Education Council (NREC) supported Cook’s nitrogen research with a grant.

“Everybody is aware of the specter of regulations so we have to manage nitrogen better,” Cook said.

She tested eight treatments that included different nitrogen rates, application methods and application times, primarily on fields at Belleville, Carbondale and the Dixon Springs Agricultural Research Center, Simpson. Overall, each location received sufficient rain, but at different

times, she noted.

“With enough rainfall, late applications of nitrogen and ESN (polymer-coated nitrogen fertilizer with controlled release) are feasible alternatives to applications at planting,” Cook said.

Later applications of urea tend to perform better compared to late applications

‘Everybody is aware of the specter of regulations so we have to manage nitrogen better.’

— Rachel Cook Southern Illinois University

of UAN, a nitrogen fertilizer composed of urea and ammonia nitrate, according to Cook.

With appropriate rainfall, plants accessed soil nitrogen and left similar amounts of nitrogen behind, she said.

Cook added she hopes to continue her study a couple of years and obtain recommendations based on multiyear results.

Snowfall light this season; will mild winter continue?

FarmWeek • Page 4 • Monday, January 26, 2015

BY DANIEL GRANT FarmWeek

Those fearful of a repeat of last winter’s snowy mess so far had those worries melt away.

Snowfall totals this winter not only are down significantly from a year ago, but also could wind up below the long-term average.

Measurements through Jan. 21 show just 10 to 12 inches of snow for the season in northern Illinois, about half a foot in south central Illinois on down to less than 2 inches in deep southern Illinois.

Last year at the same time, snowfall accumulations ranged from 1 foot in southern Illinois up to nearly 4 feet in parts of northern Illinois (see graphic).

“This year has been much quieter than last year in terms of snowfall to date,” said Jim Angel, state climatologist with the Illinois State Water Survey.

Mild temperatures, except for a 10-day cold snap earlier this month, are a key thus far to the decrease in snowfall.

The statewide temperature last month was 3.5 degrees above normal.

“We have, in some cases, replaced the snowfall with rainfall or, unfortunately in some cases, freezing rain,” Angel said.

Soil moisture, as a result, hasn’t been negatively impacted by the lack of snow in most areas of the state.

“Actually, precipitation through central Illinois is in great shape. We’re above average the last 30 to 90 days,” Angel said. “It’s a little dry in the northern part of the state and the far southern part of the state.

“But this is the off-season, so we don’t have much demand on soil moisture or stream flows,” he continued.

“We can fall behind and not

get in too much trouble.”

The forecast late last week called for another mild weekend followed by high temperatures in the upper 30s this week with limited chances of precipitation.

So will the mild winter continue or are Illinoisans due for a big snowstorm or two?

“Nothing really is in the forecast (as of last week), but we’ve got all of February, and even in early March we can sometimes see a big snow,” Angel said. “We can get one or two big storms and catch right back up on snowfall.

“But historically, when we’ve had a quiet December and January, it usually sets itself for below-average snowfall for the entire season,” he noted. “We’re already twothirds of the way through the winter snow season. It’s hard to catch up at this point.”

Winter wheat growers

expressed concern about the lack of snow cover for that crop. However, mostly mild

temperatures thus far reduced chances of winterkill in many areas of the state.

Des Moines utility planning to sue counties for nitrates The Des Moines water utility recently announced plans to sue three northwest Iowa county governments over high nitrate levels in the Raccoon River.

Officials at the Des Moines area water supplier, Des Moines Water Works, and particularly its CEO Bill Stowe, have repeatedly demonstrated an unwillingness to cooperate with farmers to improve water quality, according to Dirck Steimel, Iowa Farm Bureau news services manager.

Stowe attributed the field drainage tiles as the nitrogen source. Des Moines Water Works is now proceeding on the theory that county governments, which in some cases manage the drainage system, may be held legally responsible for what the tiles carry.

Recently, the Water Works gave formal notice it intends to sue Buena Vista, Calhoun and Sac counties, three upstream counties that manage drainage systems.

Snow rings a pasture on this dairy near the Stephenson/Winnebago County line last week. That area of the state received about 3 feet of snow through Jan. 21 last winter, but as of that same date this winter, the area received about one-third of that total. (Photo by Daniel Grant)

Dairy exports fall off the table

BY DANIEL GRANT FarmWeek

Source: USB Market View Database

So do chickens, turkeys, cows and fish.

In fact, animal ag is your number one customer - consuming 97 percent of your soybean meal. That’s bringing home the bacon.

Learn more at www.ILSOY.org

U.S. dairy exports appear to be coming back to earth after skyrocketing to historic highs last year.

Mike Hutjens, University of Illinois Extension dairy specialist emeritus, last week reported dairy exports declined 16 percent in recent months.

“That is a huge problem,” Hutjens said of the export situation last week at the Illinois Dairy Summit in Freeport.

Dairy exports, prior to the recent downturn, posted impressive gains last year of 25 percent for nonfat dry milk, 20 percent for cheese, and 62 percent for butter, cream and yogurt.

A key component of that growth was China, which boosted imports of U.S. butter by a whopping 267 percent, thus leading to a butter shortage and major run-up in prices. China last Mike Hutjens year also imported nearly half of U.S. whey.

“Exports were red hot in 2014,” said John Newton, U of I ag marketing assistant professor. “That’s what really drove the price boom.”

Now that world demand fell off the table compared to recent highs, dairy prices are slowly going down the drain. Newton predicted a $10 decline in 2015 milk prices compared to 2014.

“Exports have cooled,” Newton said. “That puts downward pressure on prices.”

Dairy prices also could be pressured this year by about a 3 percent increase in production — U.S. butter and cheese stocks are on the rise — along with a slowdown John Newton in world economic growth.

A recent projection for world economic growth for 2015-16 was reduced by .3 of a percent. Meanwhile, China’s economic growth last year, 7.4 percent, was the lowest in 24 years, according to Newton.

U of I research focuses on strengths, weaknesses of dairies

Page 5 • Monday, January 26, 2015 • FarmWeek

BY DANIEL GRANT FarmWeek

Dairy farmers around the state can see where they stack up against other operations and how they can improve, thanks to a major research project at the University of Illinois.

The U of I Dairy Focus Team, led by Phil Cardoso, U of I Extension dairy educator, evaluated 20 dairies around the state last year and interviewed operators at each location.

The goal was to improve local farms through education and identify strengths and weaknesses of farms in every region of the state.

“We came up with suggestions after the analysis,” Cardoso said last week at the Illinois Dairy Summit in Freeport. “Farmers can compare themselves with other farms in their region and across the state.”

Results of the Dairy Focus Team analysis of the 20 dairies, along with tips for improvement, can be found online at {dairy focus.illinois.edu}.

The focus team surveyed each farmer and analyzed his or her farm’s management, facilities, calves and young stock, and nutrition practices.

The team found a great deal of variability across the state, but, in general, Illinois dairies perform well with reproduction in their herds but can improve in the area of free stall bedding.

Dairy farmers should try to keep at least 95 percent of dairy beds dry. The average for the state was 90.8 percent with a wide range of 60.2 to 97.6 percent.

Meanwhile, the amount of organic matter in bedding should be less than 3 percent, according to Cardoso. But the amount of organic matter found in bedding across all dairies in the survey ranged between .6 percent up to 6.12 percent.

“I think some farmers aren’t aware of the importance of dry matter and organic matter (in bedding),” Cardoso said. “There’s a lot of variability on farms. It’s just a matter of fine-tuning the source.”

Meanwhile, farmers also should focus on reproduction rates to maintain top output on their farms. The Illinois dairies scored well with a first service conception rate of 40 percent.

However, the conception rate ranged from 29 to 58 percent.

“There’s still room for improvement there,” Cardoso said.

Cardoso urges farmers to test their feed as the Focus Team found a big variation in the quality and digestibility of forage samples. The percentage of starch digestibility in corn silage generally was low in the state.

Farmers this time of year also should consider adding nutrients and more liquid feed to their calves’ diets as they require more energy in the winter months, Cardoso added.

Phil Cardoso, left, University of Illinois Extension dairy specialist, discusses research results with John Conrad, right, and Bob Schmidt, center, of Global Consulting and Development, during the Illinois Dairy Summit in Freeport. The event, hosted by the U of I Extension and Illinois Milk Producers Association, was also held in Bloomington and Centralia. (Photo by Daniel Grant)

Farm bill: Your questions answered

Landowners have about a month left — until Feb. 27 — to decide whether to reallocate base acreage or update payment yields.

Farmers can choose between Agricultural Risk Coverage and Price Loss Coverage (ARC) through March.

Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, answers FarmWeek reader questions each week about the decisions farmers face. This week’s question: Q: If I have a crop share lease with an absentee landowner in County A, but the landowner’s Administrative County with Farm Service Agency (FSA) is in

Start Planning Now

Administrative County data will be used to determine county benchmark revenues and guarantees for ARC-County, substitute yields or assigned yields for various programs.

County B, which county will be used for county yield and/or revenue calculations?

A: While both landowner and tenant farmer may conduct business with FSA in different counties, each FSA farm has an actual Administrative County.

The FSA farm number’s

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.

As a reminder, anyone planning to attend free regional farm bill meetings conducted jointly by IFB and the University of Illinois must pre-register at {farmbilltoolbox.farmdoc.illinois.edu}.

If you do not have an email address, contact your county Farm Bureau office, which will forward your name to Doug Yoder.

Attend a meeting at your convenience ...

Date

Location

City

Time

Contact

January 27

First United Methodist Church

Sullivan

9:00 AM

Tyler Harvey, 217-728-4214

January 27

U of I Extension

Taylorville

6:30 PM

Melissa McMillan, 217-824-2940

January 28

Peoria County Farm Bureau

Peoria

9:00 AM

Patrick Kirchhofer, 309-686-7070

January 28

Fulton County Farm Bureau

Lewistown

2:00 PM

Elaine Stone, 309-547-3011

January 28

New Salem Visitor ’s Center

Petersburg

7:00 PM

Ashley Beutke, 217-632-2217

January 29

Mini Expo Bldg

Bloomington

7:45 AM

Jim Hanlin, 309-662-0101

January 30

DeKalb Agri-Center

Sycamore

8:00 AM

January 30

NIU Conference Center

Rockford

1:00 PM

February 2

Railside Golf Course

Gibson City

8:00 AM

Guy Percy/Nick Roesch, 217-784-8280

February 2

Sloan Implement

Virden

12:00 PM

Dave O’Dell, 217-965-5888

February 3

White County Farm Bureau

Carmi

12:00 PM

Rick Basinger, 618-963-2621

February 3

St. Clair County Farm Bureau

Belleville

6:00 PM

Keith Wilken, 618-526-4541

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.

Margin weakness on tap for dairy farmers; payments possible

FarmWeek • Page 6 • Monday, January 26, 2015

BY DANIEL GRANT FarmWeek

Dairy farmers who signed up for USDA’s Margin Protection Program (MPP) probably figured they wouldn’t need it any time soon.

Milk prices, after all, reached a record $26.30 per hundredweight last September and remained strong through 2014.

But a dramatic turn of events in recent months shifted the economic outlook for dairy farmers to the point that MPP payments are possible this year, according to John Newton, University of Illinois assistant economics professor.

“We expect margins to decline,” Newton said last week at the Illinois Dairy Summit in Freeport. “We could see MPP payments.”

Newton expects milk prices to tank this year compared to last year, which could prompt MPP payments.

Milk prices could slip below $14 per hundredweight this year due to increased production and weaker global demand. Newton noted milk production this year could expand by 3 billion gallons.

If realized, margins could dip from a record $15.51 last

year to the $7 to $8 range, or potentially lower.

Margins around $8 could trigger a payment of $1 for producers who locked in that level of coverage, according to Newton.

Overall, about 72 percent of dairy farmers in Illinois signed up for MPP, Newton reported.

This compares to about a 50 percent signup rate nationwide.

Enrollment for fiscal year 2016 will be held between July 1 and Sept. 30.

MPP payments, if realized this year, could be driven mostly by lower milk prices.

Newton expects feed prices to remain stable.

Farmers still should evaluate their feeding programs, calculate feed efficiency and refine rations when possible to maintain or boost production, or minimize costs.

“The rules haven’t changed with lower milk prices,” said Mike Hutjens, U of I dairy specialist emeritus. “Never give up milk.”

Hutjens urges farmers to regularly test their feed for nutritional value and digestibility. If feed values are down, farmers should consider other available quality forages, adding other byproducts to the ration, or using more corn.

Mike Hutjens, left, University of Illinois Extension dairy specialist emeritus, and Jim Endress, right, Rockford farm management educator, weigh sifted forage samples during the Illinois Dairy Summit in Freeport. U of I and Illinois Milk Producers Association hosted the event. (Photo by Daniel Grant)

“Corn is underpriced. You might have to bring more in the ration,” Hutjens said.

“Byproducts, such as distillers’ grain, are about half price right now, which excites me.”

Farmers also should process corn silage, which could boost milk production, he added.

However, Mike Taylor, U.S. Food and Drug Administration (FDA) deputy commissioner, believes more than a decade could pass before the federal government fully implements the Food Safety Modernization Act Mike Taylor (FSMA).

“The key really is going to be how we work together over the next 10 years as we implement these rules,” said Taylor, during an interview following his presentation at the recent American Farm Bureau Federation annual convention in San Diego. “Then we need to work together to educate farmers and other members of the food community to be clear on what’s expected, provide the technical assistance and get the high rates of compliance that will ensure the safety of food.”

FDA calls FSMA “the most sweeping reform of food safety laws in more than 70 years.”

The law could require: • standards for growing and

harvesting fruits and vegetables, • criteria for food and feed inspection, and • plans to prevent foodborne illnesses.

Taylor said FSMA will attempt to prevent food safety problems rather than simply reacting to them after they occur.

“Nobody thinks that we’ll ever get to the point where there will be no foodborne illnesses,” said Taylor. “It’s a complex food supply. It’s a human enterprise. Hazards change all the time. What we want to be able to do is ensure consumers we are using the best, modern tools to do everything we can to prevent problems, and then when we do have problems to be able to respond quickly to contain them.”

FDA also wants FSMA to ensure imported foods meet the same standards as U.S.grown food. At present, FDA inspects only about 2 percent of imported food. Proposed FSMA rules could shift the focus from FDA to importers, who may have to provide verification that their imported food meets U.S. standards.

Food safety rules could see 10-year implementation New federal rules that would make farmers and others along the food supply chain more responsible for food safety could be finalized this year.

BY MIKE ORSO

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Tri-State Forest Stewardship Conference planned March 14

A daylong program of forestry and related workshops will take place March 14 at the Sinsinawa Mound Center, Sinsinawa, Wis. Early registration is recommended due to limited space. Feb. 26 marks the official paper registration deadline.

Sponsors include the Cooperative Extension Services of the University of Illinois and Iowa State University; the Illinois Forestry Development Council; the state natural resource departments of Illinois, Iowa, and Wisconsin; the U of I natural resources and environmental sciences department; and the Iowa State University department of natural resources.

Topics range from tree management to wildlife, timber sales, bat management and beekeeping. The early registration fee is $45 until Feb. 13 when it increases to $55.

For more information or to register, visit {bit.ly/1yxmdHO}.

Page 7 • Monday, January 26, 2015 • FarmWeek

Priorities • Allowing workable farm use of unmanned aerial vehicles (UAVs). Nielsen said the organization supports the use of UAVs to help make farmers more profitable.

• Promote IFB’s commitment to cleaner water. IFB wants individual farmers to share the steps they take to make water that leaves their farms as clean — if not cleaner — than the rainwater that fell there.

“That’s a message that we need to deliver because we have a great story to tell,” Nielsen said.

• Normalize U.S.-Cuba relations. IFB supports efforts to normalize relations between the two countries with the goal Continued from page 1

Sadie Gassmann of Olney carries the title of 2015 Miss Illinois County Fair Queen after being crowned at the recent Illinois Association of Agricultural Fairs (IAAF) annual convention in Springfield. Ron Meyer of Manteno, IAAF president, escorts Gassmann. (Photo courtesy of IAAF)

Gassmann crowned Miss Illinois County Fair Sadie Gassmann of Olney will represent Illinois as the 56th Miss Illinois County Fair.

The former Miss Richland County Fair majors in elementary education at Southern Illinois University Edwardsville. She is the daughter of Gwen Gassmann and the late Chris Gassmann.

Gassmann received the crown during the Illinois Association of Agricultural Fairs annual convention in Springfield.

More than 3,500 county fair members and friends attended.

The association also presented three Friend of Illinois County Fair awards. Recipients included Ray and Janice Swyear of Swyear Amusements of New Athens, Robert “Bob” Scherer of Boone County Fair and Jerry Jacobs of Carroll County Fair.

The three received the honor due to their outstanding Illinois county fair support and innovation in the industry.

The Swyears celebrate their

57th year in the amusement industry, making the business one of the oldest Illinoisbased traveling amusement companies and one of the longest-serving associate members of the IAAF. With the passing of Ray in 1997 and Janice’s retirement in 2013, the second and third generations have taken the helm.

Scherer of Genoa has served on the Boone County Fair Board for 18 years. He oversees the free entertainment building and secures entertainment. He also serves as superintendent of the truck and tractor pulls.

Jacobs has served on the Carroll County Fair Association Board in Milledgeville for 26 years. He also assists with boat and camper storage. He drives his 1949 International H tractor in parades advertising the Carroll County Fair. He belongs to the Whiteside County Rabbit Association, the American Rabbit Breeders Association and the Illinois Rabbit Breeders Association.

to ultimately end the trade embargo.

• Pass Trade Promotion Authority (TPA). IFB supports TPA, which would allow the president to negotiate trade deals without Congress changing them. Congress could still vote up or down on the agreements, but not amend them.

• Support voluntary labeling of genetically modified organisms (GMOs).

• Make progress toward waterway improvements. IFB plans to support efforts to complete a waterways infrastructure improvement project on the Upper Mississippi River.

• Defend the Renewable Fuel Standard (RFS). EPA’s controversial proposed volume standards for 2014 have yet to

be finalized. EPA proposed the renewable fuel mandate in the RFS be lowered from 14.4 billion gallons to 13 billion gallons. The advanced fuel mandate, including biodiesel and E85 fuel, would drop from 3.75 billion gallons to 2.2 billion gallons.

• Secure a legal and stable ag workforce. Nielsen expects immigration reform to be discussed in a “piecemeal fashion” and include discussion of agricultural labor.

“The president’s executive order has provided a lot of employees who work on farms a higher level of freedom to pursue other jobs,” he said.

“It’s anticipated the executive order may have an impact on farmers’ ability to hire.”

Cover crop research results will be announced

Results of the Lake Bloomington Watershed cover crop study and other Illinois State University nitrogen management studies will be shared at 8:30 a.m. Jan. 28 at the Lexington Community Center in Lexington.

In addition to providing cover crop study results, speakers will discuss the influence of cover crops on soil health and water quality, cost-share conservation programs and results from regional watershed water quality projects.

A panel comprised of farmers, conservation agents and cover crop specialists will conclude the meeting at 2:30 p.m. Lunch will be served. While attendees pay no fee, reservations should be made by emailing mfakers@ilstu.edu.

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Local food movement includes local grains

FarmWeek • Page 8 • Monday, January 26, 2015

PREPARING TO TAKE FLIGHT

Western Illinois University (WIU) School of Agriculture receives an unmanned aerial vehicle (UAV) as a teaching tool, thanks to Munson Hybrids of Galesburg. WIU plans to hire a precision agriculture faculty member and use the UAV for student projects and research. From left in back row, WIU Farm Coordinator Heath Geiman, WIU School of Ag Professor of Plant Breeding and Genetics Win Phippen, WIU School of Agriculture Director Andrew Baker, WIU Vice President of Advancement and Public Services Brad Bainter, Munson Hybrids Regional Sales Manager Drue Calvert and WIU Geographical Information Systems Center Director Chad Sperry. Front row from left, WIU Provost and Academic Vice President Kenneth Hawkinson, Munson Hybrids CEO and President John Hennenfent, WIU College of Business and Technology Interim Dean Kathleen Neumann and Munson Hybrids Communications/Marketing Lead Lori Theine. (Photo courtesy WIU)

There’s a difference between field experts and experts in the field.

interest to the guild, especially bread wheat. Wheat serves as a community building crop: the system needs farmers to grow it, millers to mill it, and bakers and chefs to turn it into the products most people eat, namely bread, pasta, pizza and pastries.

GPGG members started testing recipes using local grain and the results have been very encouraging.

“Working with Illinois grains and Illinois farmers inspires me to take my bread to the next level. To create beautiful, flavorful and nutritious bread is the dream of all bakers,” said Chad Sanders, baker at The Garlic Press & Market Café in Normal.

Americans consume an average of 3 bushels of wheat a year. That means the 174,647 people living in McLean County annually consume 523,941 bushels of wheat. With an average 2014 yield of 67 bushels per acre of wheat in Illinois, it would take 7,820 acres of wheat — about 1.1 percent of the county’s farmland — to meet the needs of everyone in McLean County.

GPGG members believe growing more food for local processing and consumption would create jobs, help bring young people back to the farm and revitalize rural communities.

Farmers, millers and bakers interested in the guild may contact Davison at wdavison @illinois.edu or 309-6638306.

Regional Farm to School conferences planned

Southern Illinois University (SIU) in partnership with with the Illinois Farmers Market Association, University of Illinois Extension and the Illinois State Board of Education plans three regional Farm to School conferences.

Dates, locations and registration deadlines include: Feb. 9, Lincoln Land Community College, Springfield, register by Feb. 4; Feb. 23, SIU, Carbondale, register by Feb. 18; and March 9, Joliet Junior College, Joliet, register by March 4.

Participants may attend at no cost, but must register because space is limited.

Topics at each conference include: economic opportunities for farmers, safe food handling practices, and rules and regulations for local food procurement in schools. Professional chefs will conduct cooking demonstrations.

To register, visit {bit.ly/1CiFjCJ}. For information, contact Sylvia Smith, SIU, at 618-536-7567 or ssmith@siu.edu.

U of I updates farm bill toolbox

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 for optimum opriate hybrid or varietyy,, nutrient management m growth, or advice on disease and pest management, our crop specialists are always focused on pointing your operations forward. So, the only thing you’ll be asking FS is, what’’s next?

www w.fssystem.com

The new frontier of the local food movement has arrived in central Illinois: local grain. University of Illinois Extension, area farmers, millers, bakers and consumers formed the Grand Prairie Grain Guild (GPGG) to move local grain into the mainstream.

An increase in local demand will also drive the development of local supply chains.

“Many farmers are interested in the economic opportunity local grain provides,” said Bill Davison, U of I Extension local foods and small farms educator.

The combination of low commodity crop prices and shrinking markets for those commodities has prompted some farmers to tap into the strong demand for identitypreserved grain.

Harold Wilken of Danforth, a founding member of GPGG, has grown organic grains for many years.

Wilken is currently researching the feasibility of building a grain mill to serve local markets. He said he “looks forward to the day when you can walk into a store and buy a bag of flour made from local grain.”

Wheat, oats, buckwheat, barley, rye, corn, soybeans and sorghum are among the crops that will be grown for GPGG. Many of these would be turned into value-added grains, which are processed into flour or other products such as rolled oats.

Wheat offers particular

TM

©2013 GROWMARK, Inc. A14141

With farm bill decision-making deadlines looming, University of Illinois professors updated the farm bill toolbox at {farmbilltoolbox.farmdoc.illinois.edu}.

The site has been redesigned to provide easier navigation with an added resource tool bar; lists show farmdoc Daily articles relevant to each step; and a new section gives answers to frequently asked questions.

Landowners can make payment yield and base acre reallocation decisions until Feb. 27. Farmers must make price loss coverage and agricultural risk coverage decisions by March 31.

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UREAU — Farm Bureau will host an on-the-road seminar at 6:30 p.m. Feb. 19 at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will speak. Call the Farm Bureau office at 875-6468 for reservations.

OOK – Farm Bureau will host an advanced beekeeping workshop from 8:30 a.m. to 3:30 p.m. Feb. 21 at the Farm Bureau office.

Cost is $40 for Farm Bureau of Cook DuPage Beekeepers Association members and $70 for nonmembers. Call the Farm Bureau office at 708354-3276 or email member shipdebbie@cookcfb.org to register by Feb. 17. For more information visit {cookcfb. org/buy-local/programs}.

ANCOCK — Farm Bureau will host a cover crop meeting at 10 a.m.

Feb. 3 at the Farm Bureau office. Dean Oswald, regional cover crop specialist, and local Soil and Water Conservation District and Natural Resource Conservation Service staff will speak. Call the Farm Bureau office at 3573141 to register by Feb. 2.

EE — Farm Bureau will sponsor a day trip to Waterloo, Iowa, for John Deere tractor assembly and Kenny Kass private tractor collection tours. Cost is $55.

Call the Farm Bureau office at 857-3531 for reservations

by Friday.

• Farm Bureau will cosponsor a dinner estate planning seminar at 5:30 p.m.

Feb. 11 at Candlelight in Rock Falls. Rick Morgan, COUNTRY Financial, and Dan Hawkins, Ward, Murray, Pace and Johnson, will speak. Call the Whiteside County Farm Bureau office at 815-772-2165 for reservations.

ASON — Farm Bureau will host an on-the-road seminar at 9 a.m.

Feb. 11 at the Farm Bureau office. Kevin Rund, IFB senior director of local government, will speak. Call 543-

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Tuesday: • FarmWeek: “The Early Word” • Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development; Paul Neiffer, CliftonLarsonAllen LLP: estate tax • Jim Angel, Illinois State Water Survey Wednesday: • Colleen Callahan, USDA Rural Development: importance of infrastructure to the rural economy • Monica Nyman, St. Louis

M

4451 to register by Feb. 4.

ENARD — Farm Bureau will host a farm bill session at 7 p.m.

Wednesday at New Salem Visitor’s Center. Doug Yoder, IFB senior director of affiliate and risk management, will speak.

ONROE — For Foundation scholarship applications, call the Farm Bureau office at 9396197 or email mcfarm@htc. net. Application deadline is Feb. 15.

ONTGOMERY – Applications are available for six, $1,500 foundation scholarships.

Applicants must be a Farm Bureau member or a dependent of a member majoring in an ag-related field of study and entering college during the 2015-16 school year. Visit {mont gomerycountyfb.com} for an application. Application deadline is March 9.

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 Thursday.

• Farm Bureau will host a farm bill session at 9 a.m.

Wednesday 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.

TARK — Foundation scholarships will be available to three applicants 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.

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Dairy Council: new year, new you Thursday: • Sabrina Burkiewicz, IFB promotion manager: Saint Louis Science Center ag exhibit • Tim Maiers, Illinois Pork Producers Association: Illinois Pork Expo • COUNTRY Financial farm bill meeting at the Interstate Center in Bloomington Friday: • Bob Dinneen, Renewable Fuels Association: effect of oil prices on ethanol • Harry Cooney, GROWMARK: factors determining oil prices

V

ERMILION — Farm Bureau will host a smartphone and tablet workshop at 6:30 p.m. Thursday in the Farm Bureau auditorium.

Cellular One staff will present.

Call the Farm Bureau office at 442-8713 for reservations.

• Farm Bureau will host Luau for Learning trivia night with a Jamaica My Weekend theme at 7:30 p.m. Feb. 28 at the Danville Knights of Columbus Hall. Registration is $100 per table of eight. Proceeds will benefit Agriculture in the Classroom. Registration forms are available at {vcfb. info}.

ASHINGTON — Farm Bureau will sponsor a bus trip to the National Farm Machinery Show in Louisville, Ky., leaving at 6 a.m. Feb. 12 from the Farm Bureau parking lot. Cost is $55. Call the Farm Bureau office at 327-3081 for reservations by Feb. 5.

AYNE — Farm Bureau will sponsor a bus trip to the National Farm Machinery Show in Louisville, Ky., Feb. 12. Cost is $20 for members and $40 for nonmembers. Call the Farm Bureau office at 8423342 for reservations by

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Page 9 • Monday, January 26, 2015 • FarmWeek

Feb. 6. Seats are limited.

• The foundation will offer six, $500 scholarships to Wayne county youth majoring in an ag-related field of study. Applications are available at {waynecfb.com}.

Application deadline is Feb. 28.

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

County fairs contribute $170 million to economy

Illinois’ 104 county fairs boost the state’s economy by $170 million. That’s the finding of an Economic Impact of Illinois Agricultural Fairs study conducted last summer by the University of Illinois in partnership with the Illinois Association of Agricultural Fairs (IAAF).

The study included information collected from nearly 5,000 fair attendees. Beyond the economic impact, the study revealed that county fairs provide many benefits to the community unrelated to economic gains — familyfriendly entertainment, education about agriculture, opportunities for local organizations to get involved, traditional community events, fundraising for local groups and unique entertainment opportunities.

County fairs face many challenges, including lack of state funding, keeping youth involved, competing with other summer activities, declining contributions from local agriculture and limited volunteers.

The study was conducted at 15 fairs across the state with surveys collected by 4-H youth under the supervision of Extension staff and key informant interviews conducted

by Alex Norr, a U of I graduate student in the department of urban and regional planning.

IAAF members learned about the survey results at their recent annual meeting in Springfield.

FarmWeek • Page 10 • Monday, January 26, 2015

An early write-up of 2015 crop market headlines

Markets were guided lower by the fundamentals of bumper crops and big stocks for most of 2014, but credit the late fall correction to a slew of price-friendly news reports.

From China’s approval of the Syngenta Joe Camp MIR 162 corn trait to Russia’s enforcement of restrictions on grain exports, the year wrapped up with plenty of surprises. Let’s make a few guesses about what sorts of headlines might guide the trade in 2015.

China is sure to be the source of a market shock or two. The country is seen loosening its stance on genetically modified grains in the years ahead — potentially in a way that opens the door for U.S. corn. A sizable Chinese corn purchase in 2015 would certainly inject substantial premium into the market.

Russia was the subject of numerous headlines last year and will likely remain so in 2015. When Putin sent troops into Ukraine in February and eventually annexed Crimea, wheat prices bottomed and began a quick climb higher.

Ukraine initiated a cease-fire with pro-Russian rebels, but

BY JOE CAMP

the agreement has failed to stick. Observers have every reason to believe the conflict could re-escalate in coming months. Geopolitical tensions in the Black Sea would likely prove to be a bullish influence on the grains.

Farmers have an entire growing season ahead of them in 2015. Throughout the crop year, a regular cycle of USDA reports will highlight changes on the fundamental landscape.

Traders will first look for any surprises in the March 31 prospective plantings report.

Analysts are predicting another sizable switch in acres from corn to soybeans this year.

Consensus estimates peg corn and soybean plantings near 88 million acres each.

The new-crop soybean-tocorn ratio has already begun to price an acreage switch into the market, so futures could react strongly if the USDA report is in disagreement with the current projections.

Weather conditions will provide plenty of potential for surprise. Forecasters are still uncertain as to whether or not we have entered an El Nino year. If the El Nino pattern does develop, dry weather could be in store for the Midwest in 2015. A strong El Nino event could also produce flooding or drought across the world’s other various growing regions.

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-$56.81 $48.21 40 lbs. (cash) $75.00-$92.00 $85.29 Receipts

This Week 65,646 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 76,441

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $66.22 $72.00 -$5.78 $49.00 $53.28 -$4.28

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

Steers Heifers

This week $159.91 $160.00

Prev. week $163.60 $164.03

Change -$3.69 -$4.03

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 $220.45 $226.39 -$5.94

Lamb prices Negotiated, wooled and shorn, 137-169 lbs. for 142-174 $/cwt. (wtd. ave. 151.95) ; wooled and shorn 171-195 lbs. for 133-164 $/cwt. (wtd. ave. 142.75).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/16/2014 55.8 11.4 29.4 1/09/2014 68.6 8.8 19.7 Last year 56.6 15.6 29.8 Season total 1256.2 529.3 527.4 Previous season total 1041.0 784.4 524.1 USDA projected total 1760 925 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Continued media focus on tumbling oil prices would prove to be a bearish weight on the grains. Market participants will jump on the release of news stories involving OPEC and U.S. shale.

Outside markets have already generated several key headlines this year. The World Bank recently cut its global growth forecasts on concerns over the Russian, Japanese and European economies. It even seems the Greek debt drama could very likely be replayed.

As the year rolls forward,

ing hand in the market and play an important role in price determination for farm commodities. Market participants have no way of knowing what will make the front page each morning, but one thing for certain is that they can expect to find the occasional surprise.

It will often be those surprises that set the tone for trading in 2015.

traders will continually reassess their outlook on the health of the global economy. Shifts between “risk-on” and “riskoff ” mentalities have the potential to spark broad market movements that may affect the grains.

China and Russia, weather and outside markets are just a handful of topics likely to make headlines in the year ahead. News will feature a variety of additional subjects that will factor into our world of agriculture.

News headlines are a guid-

Joe Camp serves as a risk management specialist with AgriVisor, LLC. His email address is jcamp@agrivisor.com.

continuation of the tight supplies we saw in 2014.”

USDA, in its January cattle on feed report Friday, pegged the number of cattle and calves on feed for the slaughter market at 10.69 million on Jan. 1, up 1 percent from last year.

However, the number of placements in feedlots total just 1.54 million, down 8 percent from a year ago and below prereport trade estimates.

“This report was close to expectations,” Peel said. “The only thing out of line was placements, which were a little smaller (than trade expectations). That gives a slightly bullish tone to the report.”

Meanwhile, marketings of fed cattle for December total 1.66 million head, down 5 percent from a year ago.

Beef prices should remain high this year, due to tight cattle supplies. But beef prices could face pressure from increased supplies of competing meats.

Pork production grew 2 percent in December compared to the previous year, while chicken supplies also are on the rise.

Beef production decreased 2 percent last month.

“The biggest change for the beef market in 2015 is clearly there will be more pressure at the retail level from increased supplies of pork and poultry,” Peel noted.

Beef supplies could rise in the future as well. Last week’s report showed some additional heifer retention.

Fundamentals remain tight in cattle market

BY DANIEL GRANT FarmWeek

Recent downward pressure on cash and futures prices in the cattle market likely won’t last.

Fundamentals remain tight, and cattle prices could recover and post another strong and profitable year, according to Derrell Peel, Oklahoma State

FarmWeekNow.com

Go to FarmWeekNow.com to view details and analysis of the latest cattle on feed report.

University ag economist.

“Cash and futures markets have been weak and volatile lately,” Peel told FarmWeek.

“A lot of this was just sorting out and repositioning (funds) in those markets and some post-holiday impacts, which had a spillover effect and placed a bearish tone on cash cattle.

“As we go forward, the underlying message is cattle fundamentals are still very strong,” he continued. “Numbers are tight. 2015 will be a

Scientist: Soil assessment required after flooding

When levees fail, as was the case on the Mississippi River in 2011, an orchestrated effort occurs to remove or repair flood-damaged homes and other structures.

A University of Illinois soil scientist believes an equivalent effort should be coordinated to assess soil damage, including how flooding has affected soil productivity and land used for agriculture.

“The United States Army Corps of Engineers, the Mississippi River Commission and the USDA Natural Resource Conservation Service (NRCS) should develop an agreement to immediately update soil survey maps, conduct a land scouring and deposition survey (commonly done now by NRCS), and create a soil conservation plan to ensure a rapid federal response after every levee breach and subsequent flooding event,” said Ken Olson. “This should be part of the federal government emergency response to a natural disaster.”

Olson led a team of scientists in a study of a 195-acre O’Bryan Ridge gully field area in Missouri and found the area suffered a permanent loss of 30 percent of its agricultural productive capacity.

Olson said that if the soil survey is immediately updated after every levee breach and subsequent flooding event, the damage assessment will help agency technical staff, local leadership and farmers. They would then have the information they need to make decisions and develop strategies to return the gully field lands to agricultural production or alternative land uses, and to address future flood events.

Olson added that no-till management doesn’t provide a mechanical method to eliminate annual rills, which can quickly turn into new gullies as happened in 2013. Planting cover crops after row crops could make the soil less vulnerable to future flooding and subsequent water erosion as well as offer the added benefit of sequestering soil organic carbon.

“Ironically, if the 195-acre gully field on O’Bryan Ridge had grassed waterways on the sloping soils, had been planted to winter wheat in the fall of 2010, or if the soybean field had a cover crop and/or forages when the flooding occurred in May of 2011, the land scouring and gully formation would have been greatly diminished,” Olson said.

Corn Strategy

Dollar becoming a drag on ag exports

The dollar continues to soar as European policymakers launch a new quantitative easing program. Grain traders are taking note, knowing a stronger dollar can mean weaker terms of trade that make our exports less attractive to buyers abroad.

Long established as a safehaven currency, the dollar is benefiting from flight-to-quality buying. Investors monitor the dollar by watching a composite index that is tradeweighted against six foreign currencies — the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

The dollar index traded a relatively tight range during the last two years until the U.S. Federal Reserve announced that it would begin winding down its quantitative easing (QE) program. Index futures have moved steadily higher since that decision was made last June.

Quantitative easing is a tool used by monetary policymakers in their efforts to stimulate economic demand. The recently-ended version of U.S. quantitative easing, dubbed “QE3,”

involved the central bank making purchases of bonds and mortgage-backed securities.

QE programs generally require new money printing and therefore can devalue an economy’s currency. But the effects of QE and monetary accommodation in one economy can be magnified or offset by policies in outside economies.

In the post-recession era, monetary policy cannot be evaluated in an economy-specific vacuum. As the Federal Reserve looks to inch interest rates higher in the years ahead, monetary policy’s influence on the dollar will have to be weighed against actions taken by the world’s other various central banks.

The current economic outlook for the U.S. is relatively much more promising than it is for most outside economies.

Because central banks around the world will lean toward relatively more monetary intervention, we may see continued upward pressure on the dollar.

At the present, all signs point toward a stronger dollar.

If the dollar does continue to rise against the currencies of our customers and competitors, like Japan and the European Union, count on the strength being at least a slight headwind for agriculture exports in 2015.

AgriVisor endorses crop insurance by

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

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

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ü2013 crop: A cycle low is due mid-February, but significant upside potential may be limited before spring. ü2014 crop: During the next few weeks, expect choppy price action. Use rallies to $3.90 on the March futures contract to make needed sales. vFundamentals: Upside potential may be limited before spring, but downside risk should be, too. Export sales were a marketing year best last week and reminded us that the remaining 32 weeks of the marketing year could feature plenty of strength. The week’s 86 million bushels of sales were well above the pace needed to meet USDA’s current 1.75 billion bushel export target. The ethanol grind remains robust and feed usage also looks promising. Better than expected demand will be necessary if we are to chew through any more of the estimated carryout. The acres debate will likely continue to support corn prices in the weeks ahead. The trade is still set on the idea that corn area could drop by up to 3 million acres in 2015.

Page 11 • Monday, January 26, 2015 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: A projected carryout of 410 million bushels will weigh on soybean prices in the near term, but a cycle low is due any time. Better opportunities are likely to come up for old-crop sales. 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: All indications are that the South American crop will be big, if not a record. Weather in Brazil has improved, and the early results are promising. Up to 5 percent of the crop has been harvested. Chinese export cancellations were the talk of the trade last week. The cancellations were made evident in the weekly export sales report, which featured the lowest total of the marketing year. We are certainly seeing the transition between U.S. and South American export programs have an effect on price. Even so, the pace of demand is likely to remain strong enough to

encourage future cuts to USDA’s ending stocks target.

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: We are trading under the overarching idea that global stocks are plentiful and potentially burdensome. World inventories may be sizable, but there comes a point when weak

prices start to provide value to buyers. That point seems close.

Value for the money was found in U.S. wheat exports last week. A strong 16.8 million bushels beats the 11 million needed to match the USDA estimate. Weather worries have faded for U.S. winter wheat growers, at least for now. The same goes for Russia. The size of the U.S. winter crop is smaller than the trade thought it was just a few months ago. Spring wheat seedings may decline in 2015 as well. We see a draw from stocks over the course of the next marketing year, not a continued build.

FarmWeek • Page 12 • Monday, January 26, 2015

Gaining a clear line of sight for 2015

In 2014, Southern Illinois Collegiate Common Market, a consortium of five local community colleges and Southern Illinois University, received a Distance Learning and Telemedicine (DLT) grant of $439,400 to connect college faculty with high school teachers and adult education providers in an 18-county region. The focus increased students’ access to college-level and college-prep courses as pictured by the student working with medical equipment. (Photo courtesy Southern Illinois Collegiate Common Market)

My dad used to say, “you can’t build a house without a foundation.” His reference, however, wasn’t about a structure. It was about pigs!

You see, my dad was a swine judge and a real stickler on soundness. He used to say, “An arithmetic pig puts down three (legs) and carries the one.” If the best pig in the class had difficulty walking, it was immediately eliminated from his consideration to be the class winner.

His belief was that any animal needed the ability to easily traverse the terrain of its environment and be competitive in life, making its way to the feeder, to the COLLEEN water and CALLAHAN fending for itself.

So, too, with our own rural environment.

We, too, need the ability to traverse our environment to be competitive. Our “foundation” is our infrastructure.

That’s where USDA Rural Development comes in — not only for traditional infrastructure, including reliable and affordable water and waste treatment, but for the equally essential electric power and now, broadband.

These utilities are all components of our infrastructure, and Rural Development provides funding opportunities for each.

Utilities not only provide services, but they also expand economic opportunities, improve quality of life and connect rural residents to the global economy.

Important for rural IL Broadband joins other key utilities

In the fiscal years 2009-14, Rural Development in Illinois invested more than $582.4 million in rural utility infrastructure. That investment helped more than 240,000 families, an average of 40,000 families per year, receive safe drinking water and dependable waste disposal. It provided more than 1,000 miles of new and improved electrical lines, bringing power to more than 4,000 new consumers.

You may recall the Rural Electrification Act of the 1930s helped revitalize a struggling American economy.

Eight decades later, broadband is providing that same catalyst.

Fast, affordable Internet keeps existing businesses in our rural communities, can attract new ones and is an incentive for our rural youth to stay in or return to their rural roots.

That impact is revitalizing our rural areas, developing opportunities for wealth creation, new jobs, increased economic activity and new leadership for the community.

Since 2009, Rural Development’s investment in broadband and DLT (distance learning and telemedicine) throughout Illinois has provided new and improved service to more than 78,000 rural Illinois residents. It has helped 11 health care facilities provide expanded access to state-of-the-art

care through telemedicine. The investment made distance learning technology possible in 31 rural schools, allowing them to expand their reach and improve access to information for their students.

A few days ago, President Obama announced he is challenging the federal government to remove all unnecessary regulatory barriers to broadband build-out and competition.

He’s establishing a new Broadband Opportunity Council that will unite more than a dozen government agencies with the goal of speeding broadband deployment and improving access in areas that need it most.

Rural Development is accepting applications for our Community Connect broadband grant program and will reopen a revamped broadband loan program, offering financing to eligible rural carriers that invest in bringing high-speed broadband to unserved and underserved rural areas.

Improved infrastructure is our rural foundation. It is the pathway to our rural future.

Just like the pigs my dad used to judge, we need the ability to easily traverse the terrain of our environment to be competitive in life. An unstable pig won’t win the class, and neither will we!

To learn more about the electric, water and wastewater disposal programs, or to find the nearest office, please contact the Rural Development state office at 217-403-6202.

Colleen Callahan serves as Illinois director for USDA Rural Development. She will be a guest Wednesday (Jan. 28) on “RFD Today.”

Everyone enjoys a clear day and a clear line of sight. The ability to see opportunities around you is something that makes us comfortable and even excited. Looking ahead to opportunity comes with the challenge of managing our self-created curtains that we may weave and can block a clear view of what can be.

Risk, reward, changing outcomes, the inability to guarantee outcome and challenges of cooperation can all be curtains we create that cloud our vision of what is to come.

Recognizing we all have the ability to create the curtains of doubt, as well as pull them back or even down, is the first step toward taking action on a priority. We know the main challenges states and provinces face in 2015, and we know what we would like done about them.

Political leaders are also motivated to make clear statements on what they would like to accomCHUCK plish, and there are important areas that match.

SPENCER GROWMARK and the FS System have policy priorities for areas where we operate and can be reviewed at {growmark.com} by clicking on the “Our Commitments” tab, then “Corporate Responsibility & Compliance” and “Legislative Priorities.”

Let’s focus on a few national and provincial areas we can clearly see coming in 2015. Transportation infrastructure will be addressed in 2015. The highway bill, which provides funding and project priorities for the U.S., needs reauthorization

by May 31. With the price of road fuels low, the call for tax increases are high. At the national level, the chairman of the Ways and Means Committee in charge of taxation has declared no federal fuel tax increase. States will debate tax increases for their funding programs.

Our System needs improvements in the hours of service program that retains the current restart rule flexibility for drivers logging time behind the wheel, and states need improved flexibility in declaring hours of service regulation relief.

Waterway funding will experience an increase April 1 that could provide more money to construct new, 1,200-foot locks on the Mississippi and Illinois Rivers. We need to clearly see the Army Corps of Engineers take action on new locks with this increased funding.

Infrastructure, trade, tax reform, water quality and safety programs are all clearly visible for action in 2015. Spending our time looking at the opportunities and tearing down curtains preventing action we create will be our focus. We are excited by the opportunities the FS System has for a great year.

Spending our time looking at the opportunities and tearing down curtains preventing action we create will be our focus.

Chuck Spencer serves as GROWMARK’s executive director of corporate and government relations. His email address is cspencer@growmark.com.

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