FarmWeek January 28 2013 pdf

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T h e I l l I n O I s Fa R M Bureau Board of Directors last week established national priorities for the organization. ..............2

IT Was an aWaRD-WInnIng week for Dixon far mer Katie Pratt as she was selected to be a national ag spokesman. ........3

ThIs yOung laDy doesn’t know it, but her delivery meant a great deal of money for a rural Western Illinois hospital. ..............5

Monday, January 28, 2013

Two sections Volume 41, No. 4

Reid reboots Senate proposal

How does farm bill fit into the fiscal flurry?

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

With the threat of another farm bill extension and potentially shrinking federal ag funding, Illinois Farm Bureau President Philip Nelson maintains Illinois farmers must help “get this debate teed up as soon as possible.” Last week, Senate Majority Leader Harry Reid (D-Nevada) made a key move toward rebooting the debate, reintroducing farm legislation approved by the Senate last year. At the same time, House Speaker John Boehner (ROhio) said the House would not agree to a long-term increase in the federal debt ceiling without a significant deficit reduction deal. The Senate farm bill plan, which would eliminate direct payments, create a new revenue-based farm safety net program, and bolster crop insurance, offers about $25 billion in deficit savings over a 10-year period. Nelson reiterated IFB’s goal of passage of a farm bill by the August recess that would be, “awaiting the president’s signature or at least a (House-Senate) conference committee.” Congress has

extended 2008 farm bill provisions through Sept. 30. In an RFD/FarmWeek interview, Nelson largely rejected the notion that it is “back to square one” in the farm bill debate. But he stressed that amid a politicized and potentially competitive fiscal/spending debate, “We need to have a strategy and a full-court press to make this happen. “If we learned one lesson from the first round of debate, it’s that we need to put pressure on our legislators nationwide to get this done,” Nelson said. Nelson said he believes Congress can come to an agreement over the debt ceiling, but he warned of potential “pushback” as the current continuing budget resolution expires and automatic budget “sequestration” debate kicks in in March. Washington policy consultant Rob Bradner suggested the threat of severe March 1 sequester cuts in current fiscal

2013 spending could serve as “an action-forcing event” that would spur Congress to address spending cuts “in a more reasonable way.” Nelson stressed ag committees already have offered up “significant budget savings” — in the case of the

‘We need to have a strategy and a full-court press to make this happen.’ — Philip Nelson President, Illinois Farm Bureau

House, a proposed $33 billion in ag cuts. Bradner’s partner, Rich Gold, suggested the “logical” option to lock in those numbers in sequester debate would be for ag lawmakers to “formally take credit” for savings in a budget rec-

onciliation process. “That, of course, assumes we get there,” Gold nonetheless told FarmWeek during a webinar last week on the fiscal debate. “But it’s easier to do the farm bill in reconciliation, where you’re voting on this big package and it’s not hanging out there on its own.” In any event, Gold warned “it’s very important to be at the table or on the menu” as lawmakers eye savings in various program areas. Food and nutrition spending, 75 to 80 percent of the current ag budget, largely accounts for the current gap between House and Senateproposed savings, and Nelson stressed “we have to deal with that.” Another divide between the Senate and the House is the House Ag Committee’s proposal to retain price protections for southern producers along with new, Senate-style revenue support. Recognizing cross-regional

and cross commodity concerns, IFB recently won American Farm Bureau Federation (AFBF) support for policy promoting “a choice of program options” for farmers. The selection of Sen. Thad Cochran (R-Miss.) to replace Pat Roberts (R-Kan.) as Senate Ag Committee ranking Republican may “bring a different tilt” to House-Senate debate, Nelson said. As a result, Gold said he anticipates “some rejiggering of the Senate role in the farm bill.” “He (Cochran) will bring the southern philosophical difference to the table,” Nelson said. “Does that mean we’re going to look at a STAX (cotton revenue) program like the Senate did the first time around? Will there be a push for target prices or reference prices, from a southern perspective? “We’re going to have to reconcile things a little bit. The flexibility we’ve put into AFBF policy is important as we go through that process.”

Does Obama climate call signal renewed debate?

The political/regulatory environment could heat up in the wake of President Obama’s inaugural call for a redoubling of efforts to rein in “climate change.” Obama’s second-term inaugural address drew mingled applause and anxiety from ag interests. Biofuels groups including the Renewable Fuels Association and Growth Energy hailed Obama’s commitment to pursue “the path toward sustainPresident Barack able energy sources.” Obama However, his stated intention to “respond to the threat of climate change” raised concerns about a possible revival of “cap-and-trade” or similar regulatory/tax proposals aimed at reducing greenhouse gas (GHGs) emissions. And Senate Environment Committee Chairman Barbara Boxer (D-Calif.) spurred speculation that the administration itself

could move to direct the climate issue. When asked about possible climate measures, Boxer argued “there doesn’t have to be a bill,” touting U.S. Environmental Protection Agency authority to tighten controls on the transportation, utility, and industrial sectors under the federal Clean Air Act. In 2008, Obama announced his goal of establishing an emissions trading system and new GHG limits. But Congress abandoned House-approved cap-and-trade proposals amid opposition from Illinois Farm Bureau and others worried about the impact of restrictions on future production and energy and input costs. IFB President Philip Nelson told FarmWeek “it’s premature to judge what buttons (lawmakers or regulators) are going to push.” He nonetheless noted both Ag Secretary Tom Vilsack and Senate Majority Whip Dick Durbin, a Springfield Democrat, remain interested in the debate. “We’re ready for the debate — we had it teed up the last time,” Nelson recalled. In the wake of Obama’s announce-

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ment, cap-and-trade champions Sen. Sheldon Whitehouse (D-Rhode Island) and Rep. Henry Waxman (D-Calif.) announced a new House-Senate climate task force. “ We’re calling on the president to develop a plan for the administration to take action without Congress,” Waxman stated. American Farm Bureau Federation regulatory specialist Paul Schlegel suggested the issue could creep into the debate on the deficit via proposals for a “carbon tax” on greenhouse emitters to raise federal revenues. Schlegel noted 2014 will be an election year: “Forget anything happening.” After that, Obama’s lame duck status would limit his clout, and thus any major congressional climate activity likely would emerge this year, he said. “It’s speculative at this point to gauge how this could play out,” Schlegel told FarmWeek, however. “If the economy is doing as meagerly as it is now, why would you slap a carbon tax on a carbon-based economy?” — Martin Ross

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

FarmWeek Page 2 Monday, January 28, 2013

Quick takes AG CENSUS FORMS DUE FEB. 4 — Ag Secretary Tom Vilsack recently reminded farmers to complete the 2012 Census of Agriculture as soon as possible. All farmers should have received a census form in the mail earlier this month. It’s due Feb. 4. “It’s important for farmers to stand up and be counted by participating in the Census of Agriculture,” Vilsack said. “By participating in this survey, producers help provide a snapshot of the current state of agriculture in our country, which helps policymakers make better decisions about farm safety net programs and policies.” Farmers can return their forms by mail or online at {agcensus.usda.gov}. Federal law requires all producers to participate in the census and requires USDA to keep all individual information confidential. Farmers who refuse or willfully neglect to answer questions on the census could face a fine of up to $100.

NEW LOAN OPTION — New and beginning Illinois farmers have an agricultural microloan option to help with credit needs of $35,000 or less. In 2012, the Illinois Farm Service Agency (FSA) provided $190.162 million in farm loans to farmers with various sizes of operations. Of the 859 loans made, 508 were for farm ownership and 350 were for farm operating expenses. One emergency loan was issued. Of those loans, more than half were made to beginning and socially disadvantaged farmers for a total of $75 million. The current interest rate for operating loans, including microloan operating loans, is 1.25 percent. A microloan term may be for up to seven years. The loans may be used for capital items as well as operating expenses, according to Scherrie Giamanco, state FSA executive director. For more information, contact your local county FSA office. ACRE, DCP SIGN-UP BEGINS FEB. 19 — The Farm Service Agency last week announced it will begin sign-up Feb. 19 for the direct and countercyclical payment (DCP) program and the Average Crop Revenue Election (ACRE) program. Many Commodity Credit Corp commodity, disaster, and conservation programs, including DCP and ACRE, recently were authorized through this year when lawmakers extended the 2008 farm bill. The DCP sign-up will be from Feb. 19 to Aug. 2. The ACRE sign-up period will be from Feb. 19 to June 3. The 2013 DCP and ACRE program provisions are unchanged from 2012, except that all eligible participants may choose to enroll in either program for the 2013 crop year. The Milk Income Loss Contract (MILC) program also was extended in the farm bill. All dairy producers’ MILC contracts automatically were extended to Sept. 30.

(ISSN0197-6680) Vol. 41 No. 4

January 28, 2013

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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

Weather

Drought eases despite lack of snowfall BY DANIEL GRANT FarmWeek

Snowfall totals so far this season have been below average in most areas of the state. But rain, particularly in Southern Illinois, has eased abnor mally dr y and drought conditions in many parts of the state. Precipitation totals around the state this month as of Thursday ranged from 3 to 5 inches in Southern Illinois, 2 to 3 inches in South-Central Illinois, and 1 to 2 inches in most of the northern half of the state. “It’s kind of tricky (assessing winter precipitation),” said Jim Jim Angel Angel, state climatologist with the Illinois State Water Sur vey. “When it doesn’t snow, you’d think we’re not getting moisture. But we’ve been getting some rains.” Annual snowfall in the state, from 1981 to 2010, has averaged about 36 inches at Chicago’s O’Hare Airport, 24 inches in Peoria, 21 inches in Springfield, 18 inches in Urbana, and nearly 14 inches in Marion and Mt. Vernon. But snowfall totals this season as of last week were in single digits at most locations.

Angel said he personally has used a broom instead of a snow shovel to move light snow so far this season. He is stationed in Champaign. “Any other year it (the lack of snowfall) is no big deal,” Angel said. “But I’m a little more concerned this year because there were so many problems in 2012 and people are worried about a dr y start to 2013.” Illinois in 2012 experienced the 10th driest year on record with an overall precipitation deficit of 9.83 inches. “We don’t have to totally erase the deficit from last year. It’s not an accounting thing,” Angel said. “We just need enough moisture to recharge the soil and groundwater” and get stream flows and pond levels back to nor mal. Soil moisture in most of

the southern two-thirds of the state as of last week was rated as nor mal or abnor mally dr y, according to the U.S. Drought Monitor. But moderate drought covered some northern and western counties with severe drought conditions in parts or all of 10 counties in Northern Illinois along the Iowa/Wisconsin borders. “The areas I’m still concerned about are Western Illinois, from Quincy to the Quad Cities, and the northern part of the state,” Angel said. Some snow would be beneficial for the winter wheat crop as the Climate Prediction Center projected an increased chance of below-nor mal temperatures. “Febr uar y may be our winter month,” Angel added.

IFB national priority issues The Illinois Farm Bureau Board of Directors last week approved a roster of national legislative priorities for the organization for 2013. IFB seeks efforts to: • Conclude the farm bill debate and implement long-term farm policy that provides for strong crop insurance, revenue protection, and incentive-based conservation programs for Illinois farmers. • Build demand for renewable fuels and defend their place in the domestic energy portfolio. • Promote trade and transportation policies that open markets, upgrade existing waterway infrastructure, and support reliable, efficient, and competitive movement of inputs and agricultural products. • Block unscientific water quality, air quality, and animal care initiatives that create red tape and unnecessarily drive up grain and livestock production costs. • Pass immigration laws that provide farmers a legal and stable workforce. • Fight for tax reform and other fiscal policies that support growth and stability in the agricultural sector and the U.S. economy.

Tuesday: • Ag weather with Chesapeake Meteorology • Dave Erickson, president of Knox County Farm Bureau • Amy Hansmann, Illinois Farm Families field mom • Liz Hobart, associate director of national legislation and policy development Wednesday: • Illinois Department of Agriculture representative • Jason Williamson, Siegers Seed Co. • Lyn Clarkson, president of Clarkson Grain Thursday: • Steve Stallman, president of Illinois Wheat Growers Association • Ann Noble, sensory chemist • Bradley Beam, wine blogger for LocalPour IL Friday: • Harry Cooney, GROWMARK energy risk management • Mike Doherty, senior economist for Illinois Farm Bureau • Cynthia Haskins, manager of business development for IFB To find a radio station near you that carries the RFD Radio Network, go to FarmWeeknow.com, click on “Radio,” then click on “Affiliates.”

Page 3 Monday, January 28, 2013 FarmWeek

Around ILLInoIs

‘We’re the farmers, and she’s the P.R. person.’

Illinois Farm Bureau Vice President Rich Guebert Jr., right, makes a point while discussing agriculture issues with Charlie Arnot, chief executive officer of the Center for Food Integrity. Arnot spoke to about 300 Illinois State University students and faculty and agriculture leaders on the Normal campus. (Photo by Kay Shipman)

Arnot: Consumers seeking farmers’ values, not science Dixon farmer Katie Pratt, one of four national farm and ranch spokesmen, will rely on her husband, Andy, and children, Ethan and Natalie, for support over the next year. Pratt will travel around the country as a U.S. Farmers & Ranchers Alliance face of farming and ranching. (File photo by Ken Kashian)

Illinois farmer taking passion about ag to the national stage BY KAY SHIPMAN FarmWeek

America will soon learn what Katie Pratt’s family has known for years: She is passionate about agriculture and not shy about sharing that fact. “We tell everyone, ‘We’re the farmers, and she’s the P.R. person,’” Pratt’s husband, Andy, said with a chuckle. This year, the Dixon farmer will use her public relation skills on a national stage. Pratt last week was named one of four individuals who will be the first “Faces of Farming & Ranching” by the U.S. Farmers & Ranchers Alliance. She will spend a year making public appearances, giving media interviews, and answering the public’s questions about farming. The others joining Pratt are: Chris Chinn, a Missouri hog and grain farmer; Bo Stone, a North Carolina grain and hog farmer; and Will Gilmer, an Alabama dairy farmer. One of Pratt’s goals is to “literally put a face” on a farmer for people across the nation, she said. That includes answering questions, listening to concerns, and explaining what farmers do. “Because we raise corn and beans and use biotechnology, I will probably answer a lot of questions about that,” Pratt speculated. She may compare biotechnology and modern agriculture practices and technology to advancements made in other industry sectors. “Agriculture can’t rest on its laurels and do the things it did a generation ago,” Pratt explained. Pratt also has served as a farm mom with Illinois Farm Families (IFF). IFF represents farmers who support Illinois Farm Bureau, Illinois Pork Producers, Illinois Corn Marketing Board, Illinois Soy-

bean Association, and Illinois Beef Association. While Pratt is having conversations about modern farming, her husband and young children, Ethan and Natalie, will keep the home fires burning on their Lee County farm. Andy said both his parents and Katie’s parents will lend support. “We’ll adapt and make it work. That’s what farmers do,” Andy said. The Pratts also were touched by the support Katie received during the nearly twomonth-long online voting process. “It was amazing to us how everyone in the state pulled together,” Andy said. “It was really neat to see the ag community come together.” Individuals in the state were allowed to vote once daily. As a mother of a second grader and kindergartner, Pratt is accustomed to taking advantage of teachable moments. Recently Pratt, the Ag in the Classroom coordinator for Lee County Farm Bureau, was talking about pork pizza toppings with fifth graders when a student asked a zinger. “If a fifth grader says to you, ‘What’s a gestation crate?’ You take the time to explain what a crate is,” she said. Andy said he and Katie have been explaining to Ethan and Natalie what their mom will be doing. Although the children may not grasp the scope of their mom being a national spokesman, they know she won — and want to know what she’ll be bringing home, according to Andy. “She won a Gator (as a finalist in the 2012 American Farm Bureau Federation Discussion Meet) so they wanted to know what (equipment) she’ll bring home,” Andy said with a laugh. While Pratt will receive a stipend for her year of duty ($10,000), she will not be bringing home another Gator.

Farmers need to gain consumers’ trust if they want to be able to produce enough food to feed a growing global population, according to Charlie Arnot, chief executive officer of the Center for Food Integrity. “The theme is — we have to do more with less. But how do we do that in a way that builds trust?” Arnot asked a group of 300 Illinois State University (ISU) students and faculty and agricultural leaders Thursday evening. His presentation on the ISU campus came on the heels of a speech to a University of Illinois food systems class in Urbana. The Center for Food Integrity is a nonprofit organization that conducts research in an effort to build consumer trust in today’s food system. Arnot said farmers have attempted to address consumers’ concerns by continuing to offer scientific proof of the safety and validity of their farming practices. Agriculture has operated on the premise that if the public receives the right information, it will believe ... “If not, we will go get more science,” he said.

However, he said, consumers don’t doubt farmers’ competency, but they do have questions about farmers’ ethical values. “They are not asking if we can. They’re asking if we should,” he said. He advised farmers to articulate their ethical commitments and what they “stand for.” He suggested one ethical tenet is: “Support responsible food production systems to produce the food we need using fewer resources to meet growing global demand for food.” When a farmer is challenged by a consumer’s questions, that farmer should ask follow up questions to ascertain the consumer’s main concern and then address it, Arnot suggested. For example, if a consumer’s main concern is food safety, the farmer should assure that person he also is interested in producing safe food, he explained. “Help them (consumers) understand today’s food system is better aligned with their values than they thought,” he suggested. — Kay Shipman

2 Illinois farmers honored for explaining biotech

Two Illinois farmers, Katie Pratt of Dixon and Leon Corzine of Assumption, will be honored by the Hawaii Crop Improvement Association and the Hawaii Farm Bureau Federation. Pratt and Corzine earned the honor by explaining how they use biotechnology on their farms in a national “Views from the Farm” essay contest. The essays of Pratt and Corzine were among five winners selected from more than 100 entries. “It’s so vitally important for our lawmakers, government officials, and business and community leaders to recognize that biotechnology is a tool embraced by farmers all over the country,” said Alicia Maluafiti, executive director of the Hawaii Crop Improvement Association. The other winners are Martin and Nancy Richards of Oregon, Rachel Bina of North Dakota, and Alan Schreiber of Washington.

FarmWeek Page 4 Monday, January 28, 2013

government

River funding: Industry willing, Congress . . . ? BY MARTIN ROSS FarmWeek

Shippers are willing to pay for it. Agriculture, business, and labor interests are clamoring for it. The question is whether the new Congress will ante up to shore up an outdated, outmod-

ed Midwest river system. Waterways Council Inc. (WCI) spokesman Debra Colbert said she is hopeful the Senate will take up a new federal Water Resources Development Act (WRDA) package that includes proposals unveiled last fall by Rep.

Lamar Alexander (R-Tenn.) and Lindsey Graham (R-S.C.). The American Farm Bureau Federation’s 2013 strategic action agenda prioritizes WRDA passage along with reform to the Inland Waterways Trust Fund — a repository for barge fuel taxes used to match federal

Guebert: ‘We’re not out of the woods’ Despite recent Midwest rains and continued progress in ensuring a navigable Mississippi River channel, Illinois farmers and shippers aren’t out of the woods, Illinois Farm Bureau Vice President Rich Guebert Jr. advised. Guebert reported a six-foot “jump” in Chester-area river levels with Southern Illinois rains over the Jan. 5 weekend. However, as of last Tuesday, the river stage at Chester had dropped to a foot below average local elevation. Guebert noted rain fell largely south and east of St. Louis below the Thebes area, providing only a temporary “pulse” for the Upper Miss. St. Louis District U.S. Army Corps of Engineers spokesman Mike Peterson told Farmweek “we had a good bump” (in water levels) just as crews were completing removal of rock obstructions in the main Thebes channel, and said he was hoping for additional rain “to keep us above critical levels.” However, projections of significant snowmelt upriver have failed to pan out. “I think we’re going to have challenges keeping a nine-foot draft on the lower river,” Guebert said. “We’re not out of the woods at Thebes. We need water flow, precipitation. There’s been no real snow up north — not even in Minnesota.” Peterson anticipates completion of Thebesarea work within the next two weeks. The Corps was considering an additional release of water

from the Carlyle Lake reservoir on the Kaskaskia River to bolster the channel. Meanwhile, U.S. Rep. Bill Enyart, a Belleville Democrat, suggested the circumstances that necessitated rock removal may merit congressional scrutiny. The Corps has refused to release water from Missouri River reservoirs to support winter navigation, arguing its hands are tied under a federal Missouri Master Water Control Manual. Waterways Council Inc. spokesman Debra Colbert urged flexibility in Corps guidance given the possibility of continued drought and the Missouri’s impact in feeding the Mississippi channel. “Borrowing” 2 percent of total Missouri water storage would have minimal impact on other river uses, Colbert said. However, she conceded lawsuits by non-navigation interests likely would arise “the minute that water was released.” “The Corps operates Missouri River dams under strict statutory guidelines based on why those dams were built,” Representative Enyart told FarmWeek. “It has to comply with that federal policy. “Unfortunately, when those dams were built back in the ’40s and ’50s, they didn’t really think about needing water pumped down into the Mississippi. We may have to revisit these statutory considerations in the event these droughts become an ongoing problem,” he said. — Martin Ross

Enyart: Farm, U.S. security key goals With farm and military spending potentially in the congressional crosshairs, Bill Enyart, a freshman member of the U.S. House Agriculture and Armed Forces Committees, likely will see some heated debate in the weeks ahead. The Belleville Democrat says he not only is up to the challenge — he feels “blessed” to be in a position to shepRep. Bill Enyart herd two areas that have “critical impacts on the district and the entire region.” The retired Illinois adjutant general, who succeeds 12th District Rep. Jerry Costello, “very heavily lobbied” for an Ag Committee seat. Enyart, who “grew up walking beans,” stressed the need for a five-year farm bill. “There’s enough uncertainty in the farming industry as it is,” he told FarmWeek. “Two years ago, it was a flood; last year, it was drought in Southern Illinois. The least we can do is get a consistent, long-term government policy in place so we can

resolve at least that area of uncertainty. “Congressman Rodney Davis in Central Illinois, adjacent to my district, is on the Ag Committee as well, as a freshman Republican. We can work together to ensure agricultural interests — not just farmers but also implement dealers, fertilizer dealers, everybody who has a stake in the industry — have a voice in Washington, D.C.” Enyart discussed ag policy goals recently with Illinois Farm Bureau Vice President Rich Guebert Jr. and other farmers at the St. Clair County Farm Bureau office. The congressman has a key connection inside production agriculture — his cousin is Douglas County Farm Bureau President Larry Dallas. Enyart stressed the need for a “balanced approach” in forthcoming debt ceiling/deficit reduction debate. While he believes “everyone in this debate has the best interests of our nation at heart,” he recognizes the challenge in reconciling “differing approaches” to deficit issues. Under across-the-board “sequester” cuts required by the 2011 Budget Control Act if Congress can’t reach a spending

compromise, the military faces $492 billion in discretionary defense spending reductions over the next 10 years. Arguing against any significant defense cuts is “simply not realistic,” said Enyart, who led

‘The least we can do is get a consistent, long-term government policy in place.’ — U.S. Rep. Bill Enyart Belleville Democtrat

Illinois’ National Guard and Department of Military Affairs as adjutant general. “We have to make sure we cut fat, and not muscle or bone,” he nonetheless emphasized. “I’ve been around the defense industry long enough that I think I have a pretty good idea of where we can go after reductions that won’t have an adverse impact on our national security.” — Martin Ross

lock funds. Alexander and Graham would attempt to boost trust fund revenues by increasing the current 20-cent-per-gallon fuel tax to 31 cents. Congress OK’d seven new 1,200-foot locks on the Illinois and Upper Mississippi rivers in 2007 but has failed to approve project funding. Locks that accommodate today’s larger barge tows are seen as crucial to improving shipping efficiency, and the current “low-water crisis” has underscored “the importance of the river system to the nation,” Colbert said. “Right now, we have these 600-foot locks — we need to get those rebuilt to a 1,200-foot standard,” Belleville Democrat U.S. Rep. Bill Enyart told FarmWeek. “The maritime industry’s willing to tax itself to pay for it. This has the support of the agriculture industry, the support of labor, the support of the (U.S.) Chamber of Commerce.” House Transportation and

Infrastructure Committee Chairman Bill Shuster (R-Pa.) has stated a new WRDA bill would be a top priority for 2013. Rep. Nick Rahall (D-W.Va.) who remains as ranking committee Democrat and who represents a major coal-shipping state, “has always been a champion of the waterways system,” Colbert said. The key challenge remains freeing federal dollars amid a House drive toward reduced spending. Colbert stressed “this is not discretionary spending or consumption spending — this is investment spending.” She acknowledged Illinois Farm Bureau support for exploring new private funding sources for navigation improvements, arguing “we wouldn’t rule that out.” At the same time, Alexander/Graham proposals to improve U.S. Army Corps of Engineers project management would help ensure optimal use of public/private funding, she said.

‘Fresh thinking’ needed to refresh lock system? A new Texas A&M University/Soy Transportation Coalition (STC) study suggests it may be time to re-evaluate how the government manages locks and, if necessary, consider moving from a “build and expand” to a “repair and sustain” approach. The soybean checkoff-funded study spotlights current inadequacies in lock management. STC Executive Director Mike Steenhoek argued the need for “fresh thinking to be incorporated into this important issue.” Key infrastructure investments require up-front “lump sum” funding or at least assurances funding installments will be provided, the study concluded. Revenues from traditional “pay-asyou-go” sources such as the Inland Waterways Trust Fund and congressional appropriations have proven inadequate, researchers stated. The study explored new funding options such as investorbased bond financing. Bonding against the trust fund and/or increased trust fund revenues resulting from higher barge fuel taxes reportedly could generate $377 million to $2.3 billion in project funding over the next eight years. Another option is to postpone new construction and major lock rehabilitation in favor of repair and maintenance of existing infrastructure. The cost of one $376.8 million construction project is roughly equal to the cost of nine major rehab projects, researchers indicated. Illinois Farm Bureau Vice President Rich Guebert Jr. admits that “in these tough economic times, it will be a real challenge to try to go for new construction.” He sees “plenty of room for discussion” of current vs. projected river needs. “We have legislation (the 2007 Water Resources Development Act) calling for expansion of seven locks,” Guebert nonetheless told FarmWeek. “I think our goal would be to get funding for those seven locks.” Steenhoek noted “how many other countries are able to construct their major infrastructure projects much more efficiently.” He cited Panama Canal expansion and construction of the Deurganck Lock — the world’s largest lock — at the Port of Antwerp in Belgium. The European Investment Bank is financing 50 percent of the Belgian lock’s cost. Five international banks are financing canal expansion. Steenhoek noted many foreign projects are “more imposing and complex” than improvements needed in the U.S. but are completed “within budget and on schedule.” That’s compared with the Ohio River’s Olmsted Lock and Dam project, where original cost estimates were $775 million, but the cost now exceeds $3.1 billion. “When examining the various reasons for our repeated cost overruns and project delays, it quickly becomes evident that a major contributing factor is the piecemeal and unpredictable manner in which we finance these projects,” Steenhoek said. — Martin Ross

Page 5 Monday, January 28, 2013 FarmWeek

the landscape

Grateful couple donates sale of heifer to hospital Cody and Erin Holst, cattle producers from Hancock County, certainly appreciate the value of a local hospital in rural parts of the state. Erin Holst in August was 32 weeks pregnant and required an emergency cesarean section, but there was not enough time to transport her to a hospital in Peoria, about two hours away. So doctors at Memorial Hospital in Western Illinois’ Carthage performed the emergency C-section that resulted in the delivery of the couple’s daughter, Reese, who weighed in at just 2 pounds. “We are extremely blessed to have a facility right here in our community,” Cody said.

“If we had to travel any farther, my wife and child may not be here today.” In a show of appreciation to the doctors, nurses, and hospital staff, the Holsts last month donated the sale of a heifer to the Carthage hospital. A large group of donors purchased the heifer at auction for $5,500. The heifer then was donated back to the family and resold to Kent and Connie Flesner for another $3,000. “It was heartwarming … to see and hear Cody say our hospital team saved his wife and daughter,” said Ada Bair, CEO of Memorial Hospital. (The couple’s donation) will make a big impact on the employee

BY DANIEL GRANT FarmWeek

The fertilizer industry depends on barge movements to get products in place prior to each planting season. This year the drought has caused barge traffic to be slowed by low river levels. Shipping issues were exacerbated last week when a vessel struck and damaged Lock and Dam 27 near Granite City north of St. Louis. Traffic was restored late Tuesday. “One thing retailers are facing now is uncertainty on the Mississippi River,” said Eggleston, general manager of Hintzsche Fertilizer in Maple Park. “Deliveries up river still are taking place (as of last week), but they’re slower than usual.” The effect of slow fertilizer deliveries on supplies and prices won’t be known until spring. If it’s an early spring and farmers have a large planting window, retailers should have the time and supplies to deliver fertilizer in a timely manner, he said. However, “having the river traffic slowed down could have an impact if it’s a short, compact spring,” Eggleston said. Long-term, Eggleston

capital campaign.” Memorial Hospital in 2007 embarked on a $4 million capital campaign to build a new hospital facility, complete with state-of-the-art equipment. Employees pledged to raise $500,000. Overall, the capital campaign stands at $2.7 million. Proceeds of the heifer sale boosted the employee portion to $433,500. “It is important for people to use and support the local facilities in their communities,” Cody added. “If you don’t use them, you will lose them.” Memorial Hospital has served Hancock County area since 1950. For information, visit the website {mhtlc.org}.

Cody and Erin Holst, Hancock County, admire their 6-month-old daughter, Reese, last week in their home. Reese was delivered via an emergency C-Section in August at Memorial Hospital in Carthage. Erin was just 32 weeks along in the pregnancy at that point. The Holsts were so grateful for the life-saving local care they donated money from the sale of a heifer to the hospital for its capital campaign. (Photo by Cyndi Cook)

New IFCA chairman sees challenges, opportunities ahead Jeff Eggleston, the new chairman of the Illinois Fertilizer and Chemical Association (IFCA), believes the future is bright for agriculture. A growing world population and increased demand for food is expected to boost the need for crop production Jeff Eggleston and corresponding inputs to help farmers produce more bushels per acre. “The future of agriculture looks very promising, especially in the Midwest,” Eggleston told FarmWeek last week at the annual IFCA convention in Peoria. But the ag industry faces challenges this spring and longterm that could affect farming methods and profitability. One of the most immediate concerns is transportation on the Mississippi River system.

Illinois freshmen get ag assignments Last week, Illinois’ freshman House Ag Committee members were granted front row seats to the next round of farm bill debate. Rep. Rodney Davis, a Taylorville Republican, was named to the committee’s General Farm Commodities and Risk Management Subcommittee, which oversees farm program and crop insurance issues. He is joined on the panel by Reps. Bill Enyart, a Belleville Democrat, and Cheri Bustos, an East Moline Democrat. Davis also will serve on the Horticulture, Research, Biotechnology, and Foreign Agriculture Subcommittee, which addresses issues ranging from specialty crops to trade. In addition, Enyart and Bustos were named to the Livestock, Rural Development, and Credit Subcommittee, which oversees livestock market and inspection, rural community, and farm credit issues.

believes nutrient management plans will be critical for farmers and the fertilizer industry. “I believe the industry will face increased regulations of fall-applied nutrients unless we do a good job generating data and following current regulations,” he said

Nitrogen fertilizer over time breaks down and can exit the soil in various forms, but Eggleston doesn’t believe it is feasible to fertilize all crops at the time of planting. “The industry is very dependent on fall-applied nitrogen,” said Eggleston, who has

been in the fertilizer business more than 30 years. “If we had to do it all in the spring, we’d be limited on equipment and logistics. We couldn’t move that much product that fast.” Illinois farmers last year planted 12.8 million acres of corn.

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FarmWeek Page 6 Monday, January 28, 2013

energy

Ethanol corn demand ‘stabilizing’ — economist BY MARTIN ROSS FarmWeek

Amid high corn prices and reduced gasoline consumption, Iowa State University ag economist Chad Hart sees traditional ethanol production “stabilizing.” Hart notes a continued “pullback” in corn demand in the ethanol sector, and he anticipates biofuels corn use will level out “at least over the next couple of years.” The economist cited “fairly steady” corn demand in 2010 and 2011 heading into 2012, with the nation’s ethanol plants tapping a combined 90 million to 100 million bushels per week. Ethanol production dropped sharply as the drought caused corn prices to spike last summer, he said. Production remains down about 10 percent relative to pre-drought output, Hart pointed out. He said an ethanol plant can be brought back online in weeks and can take advantage of profitable

positions quickly when they occur. “The ethanol industry still hasn’t found a place where it’s willing to pop back in. They haven’t seen a profitable position to chase after yet.” Further, Hart noted gasoline consumption has declined over the past five years. That’s due to the 2008 recession as well as improved vehicle fuel economy and initiatives such as 2009’s $3 billion federal “Cash for Clunkers” program aimed at removing inefficient vehicles from the road. The U.S. gasoline market appears to be stabilizing at an annual level of roughly 133 billion gallons, Hart said. “The ethanol industry as it currently stands can fill that market” even while exporting excess volume, he said. However, U.S. ethanol producers face growing export competition. A surge in Brazilian ethanol exports in 2012, chiefly to the U.S., is

credited with bolstering Brazilian sugar prices amid a general global surplus. Meanwhile, Illinois Corn Growers Association President Paul Taylor, who recently visited Argentina, sees a strong push to boost corn production in northwest Argentina largely to bolster soils deteriorating from a soy monoculture. Given that region’s low corn prices, high export costs, and a governmentmandated ethanol price, a domestic ethanol industry could both capture South American biofuels market share and generate homegrown distillers dried grains (DDGs) in competition with U.S. product, Taylor suggested. “They’re not talking about building 100-million-gallon plants — they’re building smaller facilities,” he told FarmWeek. “But when those ethanol plants go in, they’re going to feed the DDG demand, too.”

GM still supports ethanol as ‘best near-term solution’ General Motors marketing manager Mike McGarry said he believes biofuels “offer our best near-term solution” to reducing fossil fuel dependency and carbon emissions.” McGarry oversees alternative fuel/advanced technology vehicles for GM. He noted estimates that ethanol could displace at least 30 percent of U.S. gasoline demand by 2030. However, he also said he sees “no single silver bullet for replacing petroleum.” GM is accelerating efforts to develop electric, compressed natural gas (CNG), liquid propane, and hydrogen vehicles even amid a commitment to E85 (85 percent ethanol) “flex-fuel” vehicles (FFVs) and to keeping pace with emerging ethanol blends. McGarry estimated GM has 6 million-plus “flex-fuel-capable” vehicles on the road. He told FarmWeek GM is retaining its commitment to E85 technology, though with addition of advanced new fuel efficiency technologies, some FFV models temporarily may “drop off ” for similar re-engineering. All GM vehicles are capable of running on E15 — an assurance made clear in owner’s manuals — though McGarry noted Asian carmakers remain reluctant to embrace the new blend. At the same time, he acknowledged ethanol industry interest in higher “mid-level” blends such as E20 or E40 — blends that currently can be used in FFVs. “Given the work we’ve done on our engines and technologies, we know we can get there (in standard models),” McGarry maintained. “With some vehicles, it’s going to cost a little more. Currently, we don’t charge anything extra for our E85 vehicles.” GM is looking at options for reducing the price and thus boosting the appeal of its roughly $40,000 plug-in Chevy Volt, which can switch from electrical power to gasoline (and potentially ethanol) for long-range driving. At the same time, the carmaker is focusing increasingly on vehicles powered by CNG. AT&T currently is running more than 2,000 dedicated CNG cargo vans. CNG and biofuels can be compatible: McGarry noted a new Silverado Sienna “bifuel” pickup that can run alternatively on CNG or gasoline, “if you don’t have CNG in your area.” Fuel availability ultimately is key to consumer demand for next-generation vehicles — there currently are some 1,100 public CNG stations nationwide. While he believes hydrogenfueled vehicles “someday are where we’re going to be,” McGarry admits hydrogen fueling infrastructure will be costly. “The oil companies are going to let us run out of gasoline before they work on hydrogen (infrastructure),” he quipped. — Martin Ross

Donna Jones, manager of corporate relations for the Asmark Institute, describes online tools available to help ag retailers meet various regulations to Rob Ridle of Crop Production Services of Blandinsville during the Illinois Fertilizer and Chemical Association’s convention and trade show last week at the Peoria Civic Center. The Asmark Institute, based in Owensboro, Ky., helps ag retailers comply with regulations of the Environmental Protection Agency, the Occupational Health and Safety Administration, and other agencies. The Asmark Institute last summer opened a new training facility in Bloomington. (Photo by Daniel Grant)

Page 7 Monday, January 28, 2013 FarmWeek

production

Dairy specialist: Farmers should stretch forage supplies BY DANIEL GRANT FarmWeek

The drought last year forced many dairy farmers to generate as much forage as possible to replace short crops of hay and corn. Some farmers harvested additional cuttings of hay last fall while others chopped drought-stressed corn, baled cornstalks, or planted cerealgrain forages such as oats, barley, or triticale. The resourcefulness allowed many farmers to maintain their dairy herds through the year, but Mike Hutjens, University of Illinois Extension dairy specialist, is concerned about feed supplies in the months ahead. “You’ve heard of the fiscal cliff. Well, we have a forage cliff out there,” Hutjens told dairy producers last week at the 2013 Dairy Summit at the Illinois Farm Bureau Building in Bloomington. The event was hosted by the Illinois Milk Producers Association.

“It concerns me if some farmers run out of silage by April or May,” Hutjens said. If feed use is on pace to deplete silage supplies in coming months, “I’d back off now rather than run out in May.” Hutjens advised dairy producers to stretch silage supplies as long as possible, but he urged farmers not to reduce feed rations, which could negatively affect herd health and milk production. “Forages are really tough to find at this stage of the game,” he said. “But don’t cheat those cows. Never give up milk.” A productive dairy cow produces about 2 pounds of milk for each pound of dry matter. Current feed and milk prices suggest a profit of 25 cents per cow per pound of dry matter, according to Hutjens. Dairy farmers who are running low on silage should consider adding straw or cornstalks to their rations and buying forage extenders such as fuzzy cottonseed, corn gluten,

Okerlund: Farmers face high level of uncertainty Many farmers appear to be in a comfortable position heading into this year’s growing season. USDA recently predicted record-high farm income for 2012 based in part on record-high commodity prices and crop insurance payments. But underneath the rosy forecast uncertainty is rampant in the industry as many farmers attempt to deal with record-high feed and other input costs, an unstable world economy, wild weather fluctuations, the possibility of more government regulations, and numerous other unknowns, according to David Okerlund. Okerlund is a former farm chemical salesman and counselor who now is a motivational speaker. “The average farmer is becoming more consumed with uncertainty,” Okerlund said last week at the Illinois Fertilizer and Chemical Association convention in Peoria. “The question is how do they deal with an unrelenting world of change.” Okerlund advised ag input suppliers at the event to build relationships with their customers to better understand their needs. “You (input suppliers) need to understand what you offer customers,” such as providing value, reliability, and a fair price, Okerlund said. Okerlund counseled farm families during difficult economic times in the 1980s and after the 1993 flood. He said he is concerned uncertainty in the industry will continue a trend of driving the younger generation away from farms. The average age of farm operators increased from 50.3 years in 1978 to 57.1 years in 2007 and likely is higher than that now. “The greatest effect of all the uncertainty will be on the younger generation’s ability to carry on the family farm,” Okerlund said. “In 1984, I counseled young people who talked about running away from home to take the (financial) burden off their parents.” USDA in its 2012 Census of Agriculture will report whether more young farmers have stayed or returned to the farm in the past five years. All farmers and ranchers should have received a census form in the mail by early January. Completed forms are due Feb. 4. — Daniel Grant

citrus pulp, beet pulp, or soy hulls. Meanwhile, farmers who have corn silage or grain in storage should continue to monitor those crops. Drought-stressed corn silage tests have shown higher levels of starch and sugar, Hutjens noted. “Test, test, test (silage) because this crop is moving on you,” he told dairy farmers. “It (the variability of silage tests) is unbelievable.” Meanwhile, issues with aflatoxin that cooled off this winter could resurface when the temperature heats up this spring. “The problem (with aflatoxin) has died down for now,” Hutjens said. “But corn bins in March, April, and May are going to warm up, and we’re going to grow more aflatoxin.” Hutjens advised dairy farmers to keep corn in storage at less than 14 percent moisture, use mycotoxin binders (flow agents) in feed, and remove any at-risk feed to reduce issues with aflatoxin. Potential aflatoxin issues in feed are not a human health risk because every load of milk is tested before it leaves the farm, Hutjens noted. Illinois farmers in the past year dumped 1 million to 2 million pounds of milk due to the presence of alfatoxin.

New dairy specialist focuses on efficiency Dairy farmers in Illinois who have questions or concerns about production issues now can consult with “Dr. Phil” for answers. Phil Cardoso, a veterinarian who was introduced last week at the Dairy Summit in Bloomington as “Dr. Phil,” is the new University of Illinois Extension dairy research specialist. Cardoso is from Brazil, where he worked as a veterinarian. He came to Illinois in 2009 to finish his degree. He also studied U.S. dairy systems in California and Wisconsin. “We’re happy he’s our new dairy Extension Phil Cardoso specialist in Illinois,” said Dave Fischer, retired U of I dairy specialist. One of Cardoso’s key areas of research focuses on ways to improve management of the transition cow. The transition period for a dairy cow is three weeks before and three weeks after calving. Cows are more prone to diseases and other issues during the transition period. “The transition period is a very challenging time for cows,” Cardoso said. “It costs dairy farmers a lot (in terms of veterinary bills and lost milk production).” Cardoso believes controlled energy diets may help reduce the peaks and valleys for transitioning dairy cows. Overall, Cardoso said his goals for the Illinois dairy herd are to minimize health disorders and maximize production and reproduction. “All of this is going to bring more profit,” he said. “That’s the idea.” Cardoso plans to survey Illinois dairy farmers to identify current challenges in the industry so he can refine his research in an effort to find solutions to those challenges. “What I want is a two-way conversation so we can find solutions for what’s challenging on your farms,” he told farmers at the Dairy Summit. Farmers in Illinois can learn more about dairy research at a new website {dairyfocus.illinois.edu}, which will be active next month, or contact Cardoso at 217-300-2303 or email him at cardoso2@illinois.edu. — Daniel Grant

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FarmWeek Page 8 Monday, January 28, 2013

Page 9 Monday, January 28, 2013 FarmWeek

FarmWeek Page 10 Monday, January 28, 2013

Fertilizer

Soil project offers nitrogen data; spring levels unknown BY KAY SHIPMAN FarmWeek

Farmers, scientists, and crop advisers learned much about soil nitrogen levels remaining after harvest in fields across the state, thanks to a new soil monitoring project. However, questions remain, Emerson Nafziger according to Emerson Nafziger, the University of Illinois crop scientist who coordinated the project funded by the Illinois Council on Best Management Practices (CBMP). “How much nitrogen

asked as he addressed members of the Illinois Fertilizer

and Chemical Association last week.

Nitrogen levels in top foot of soil Fall 2012 samples

especially those to be planted in corn. Dan Schaefer, CBMP director of nutrient stewardship, described infield nitrogen rate trials and trials that will compare fall and spring nitrogen applications in Dan Schaefer the same fields. Nafziger urged continuation of a state nitrogen soil monitoring project: “I think Illinois can have a lead on this (issue). It’s going to look like a good thing to do from an environmental and economic standpoint.”

Prescription fertilizer, plant populations not key to managing different hybrids — Nafziger

FarmWeekNow.com To check out nitrogen levels in soils across the state with our special map, go to FarmWeekNow.com.

remains? Will it be there in the spring? Should nitrogen rates be reduced?” Nafziger

He pointed out low and high nitrogen levels in the top 12 inches were found next to each other in many areas. He said no correlations could be made between soil nitrogen levels and the amount applied or between soil nitrogen levels and crop yields. Samples from the 12- to 24inch layer showed an average of 15 parts per million (ppm) nitrogen in northern fields that were sampled, 14 ppm in central fields, and 18 ppm in southern fields. “We have equal distribution of N in the top (foot) and second foot” of soil, Nafziger said. Nafziger encouraged farmers and crop advisers to sample their fields this spring,

Nitrate levels after harvest measured in parts per million (ppm) in the top 12 inches of soil varied across the state. (Map courtesy University of Illinois College of Agricultural, Consumer, and Environmental Sciences)

Research results did not show improved yields when different nitrogen rates were applied to different corn hybrids, a University of Illinois crop scientist reported. Emerson Nafziger described his two-year study that was designed to determine if the yields of different hybrids could be improved by applying different nitrogen rates or using different plant populations. “Many people are still convinced that nitrogen is a limiting yield factor,” Nafziger said during last week’s Illinois Fertilizer and Chemical Association Convention in Peoria. “Do we need to have different nitrogen formulas for different populations and hybrids?” he asked. He conducted field research on U of I research farms in Urbana, Monmouth, Brownstown, and DeKalb in 2011 and 2012. Planting four different hybrids, he tested plant populations of 18,000, 34,000, and 50,000 plants per acre. He also experimented with different nitrogen rates. “The hybrids did act differently from other varieties with different nitrogen rates, but the four hybrids didn’t act that differently” from each other, he explained. “There was a subtle interaction among hybrids and (different) populations.” The yield response was slightly negative when hybrid plant populations were increased from medium to high, he noted. Given last year’s growing season and the impact on his study, “under stress (drought) conditions, the (yield) response to stress is negative,” Nafziger quipped. — Kay Shipman

Illinois Forage Institute set March 5 The Illinois Forage Institute will be from 9 a.m. to 5 p.m. Tuesday, March 5, at Black Hawk College East Campus Conference Center, Galva. The preregistration deadline is Feb. 22. The educational program will focus on managing hayland and pastures. The event will include forage industry commercial exhibits. Morning topics will include forage for horses, forage species selection, pasture weed control, pasture fertility, and hay production costs. Afternoon topics include soil sampling for pastures, grazing cover crops, economics of pasture forage production, pasture renovation after a drought, and feeding livestock on droughtdamaged hay and forage. The cost is $15 per person for Illinois Forage Grassland Council members and $20 per person for non-members and includes a meal and hand-out materials. After Feb. 22, the cost will increase to $20 and $25, respectively. To register, contact the U of I Extension, Rock Island County, 321 W. 2nd Ave., Milan, Ill., 61264. The telephone number is 309-756-9978. On-line registration and an agenda are available at {web.extension.illinois.edu/hmrs}.

Page 11 Monday, January 28, 2013 FarmWeek

PrODucTiOn

New hybrids changing nutrient removal from soil BY KAY SHIPMAN FarmWeek

To optimize soil fertility, farmers must consider the efficiency and increased yields of modern corn hybrids, based on data from University of Illinois research.

Fabian Fernandez, U of I soil fertility specialist, reported lower concentrations of phosphorous and potassium are found in hybrid grain; however, the amount of those nutrients removed increases as yields increase.

“We must look at longterm trends on (nutrient) removal — not just from one year to the next,� Fernandez said last week during the Illinois Fertilizer and Chemical Association conference in Peoria.

Fernandez: Consider nutrients removed with biomass Farmers who harvest biomass should consider not only how much nutrients are removed but also adjust for drought impacts this year, according to a University of Illinois soil fertility specialist. “The main question people ask is: How much nutrient is removed if we take the biomass?� Fabian Fernandez said during last week’s Illinois Fertilizer and Chemical Association Conference in Peoria. Typically a 1-to-1 ratio of grain to biomass exists, but under drought conditions, the ratio may change, Fernandez noted. This year, the corn stover yield was 0.5 of a ton for every foot of stalk height, according to Fernandez. That compares to the usual 1.2 to 1.3 tons for every foot of stalk height. Once a farmer determines the amount of biomass removed, he should consider the nutrients that have been removed, Fernandez said. The amount of phosphorous and potassium taken up by a corn plant depends on how much is available, and the drought impacted that. “The difference depends on when the plant was harvested,� he added. Of phosphorous taken up by a corn plant, three-fourths ends up in the grain and onefourth goes into the plant. “It is important to realize even when you remove the biomass out of the field,

DATEBOOK Jan. 29-30 Illinois Cover Crop Strategies, Decatur Hotel and Conference Center. For information, go to {swcs.org/covercrops}. Feb. 4 IFB Crop Insurance and Trucking Regulations seminars, 8 a.m., Festivities Unlimited, Ottawa, and 1 p.m., Kankakee Community College’s Main Auditorium, Kankakee. To register go to {ilfb.org/regionalseminars} at least three days prior to the event. For more information, email jharrison@ ilfb.org or call 309-5573207.

you won’t remove as much phosphorous if you don’t remove the grain,� Fernandez explained. Potassium is a different case with only a third of the amount taken up by the plant going into the grain. The plant takes up potassium early in the growing process compared to its uptake of phosphorous.

“It’s likely if you removed biomass, you probably removed more potassium,� he said. “If the grain (yield) was low and biomass was not harvested, then the phosphorous and potassium removal rates will be lower than normal,� Fernandez concluded. — Kay Shipman

“The concentration of phosphorous and potassium in grain is much lower than they were,� he said. But “in managing phosphorous and potassium, you just can’t look at removal (in grain). We also have to look at soil.� Fernandez reported nutrient data from his study of samples from 598 fields in 52 counties. For phosphorous levels, 19 percent of the sampled fields needed additional phosphorous, 22 percent had maintenance production levels, and 59 percent tested above maintenance levels. He said there are fields in Illinois in which the phospho-

rous level could be reduced, but there are fields that could stand to have more applied. Potassium testing results showed more need for that nutrient. Of the sampled fields, 45 percent tested below the maintenance level, 24 percent were at maintenance level, while 31 were above. “A huge number of fields can stand (additional) fertilization of potassium,� he noted. Fernandez reported the new information about nutrient concentrations in grain and higher yields may be reflected in revisions to the Illinois Agronomy Handbook.

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FarmWeek Page 12 Monday, January 28, 2013

ILLINOIS LEARNING GARDEN IN A GLOVE

Football fans encouraged to buy Illinois products The Illinois Department of Agriculture (IDOA) is sponsoring a buy-local promotion for Super Bowl fans. The promotion will be on IDOA’s Facebook and Twitter pages Feb. 1-3. Each day one person selected from among IDOA’s Facebook friends and Twitter followers will receive free Illinois products.

“Illinois food companies make everything a fan could possibly need to throw a great party,” said Jennifer Tirey, IDOA bureau chief of marketing and promotion. To sign up for the promotion visit and “like” IDOA’s Facebook page at {facebook.com/IllinoisDepartmentofAgriculture} or follow IDOA’s Twitter page at

{https://twitter.com/ILAgMarkets}. The first day’s winner will receive a one-year supply of Ray’s Brand Chilli, made in Decatur. The second day prize is a $50 gift certificate to Lou Malnati’s Chicago-style deep dish Pizza, and the third day prize is a gift pack of Ina’s Uncle Joe’s Sauces and Rubs.

WIU Ag Mech Club’s Farm Expo Feb. 9-10

Students from Mrs. Kim Lewis’ fourth grade class at Webster Elementary School in Rushville were offered a salsa snack following the Schuyler County Farm Bureau’s recent presentation of an Ag in the Classroom lesson on a Garden in a Glove. Pre-K through fourth grade students participated in the planting activity, learning about the different vegetables used to make salsa. Tomatoes, peppers, zucchini, and onion seeds were planted in a glove to teach the germination process of the seeds. The book, “The Vegetables We Eat,” by Gail Gibb o n s w a s r e a d t o t h e s t u d e n t s . ( P h o t o b y K e l l y We s t l a k e , Schuyler County Farm Bureau manager)

The 43rd annual Farm Expo at Western Illinois University (WIU) will open Saturday, Feb. 9, on WIU’s Macomb campus. The largest studentrun farm show in the U.S., the WIU Farm Expo is organized by the Agriculture Mechanization (Ag Mech) Club. The show hours will be 9 a.m. to 5 p.m. Feb. 9 and 10 a.m. to 4 p.m. Feb. 10. Alan Jarand, RFD Radio Network radio director, will deliver the keynote address at 10:30 a.m. Feb. 9. The event will feature emerging ag technology, tractors and machinery, livestock equipment and supplies, crop supplies, ag sales and service,

Visitors stroll through a recent Farm Expo on Western Illinois University’s (WIU) Macomb campus. Organized by the Agriculture Mechanization Club, the largest student-run farm show in the U.S. is planned for Feb. 9-10. (Photo courtesy WIU)

conservation methods, ag structures, and more. In addition, area businesses and organizations, such as McDonough District Hospital, will have exhibits. For children and crafters, a farm toy and craft show will be held both days in the upper concourse of Western Hall. A kiddie tractor

pull will start at noon Feb. 10. Admission is free, and free parking will be available in WIU’s Q-Lot, located on the east side of Western Hall. For more information, contact WIU’s School of Agriculture at 309-298-1080, email farmexpo@wiufarmexpo.com, or visit {wiufarmexpo.com}.

Four Illinois farmers named to AFBF advisory committees The American Farm Bureau Federation (AFBF) Board of Directors recently named four Illinois farmers to AFBF’s 2013 commodity advisory committees. Those named, along with their committee assignments, are: Don Ahrens, labor; Pat Bane, swine; Dean Campbell, soybeans; and Kevin Miller, feedgrains. The IFB representatives will attend national meetings of the AFBF advisory committees in Washington, D.C., in February. Commodity advisory committees provide an opportunity to discuss and recommend solutions to problems that directly affect the commodity for which the member was appointed. The committees serve in an advisory capacity to the president and AFBF Board of Directors.

Ag experience abounds for Illinois fair queen

Agriculture isn’t an unknown commodity to the recently crowned 2013 Illinois county fair queen. Amelia Martens, Orion, is a senior in agricultural communications at the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES), Urbana. The Rock Island County fair queen, Martens is the daughter of Patrick and Annette Martens. He is a member of the Henry County Farm Bureau Board of Directors. Martens has exhibited cattle and hogs at county fairs and promoted agriculture in the Quad City Amelia Martens area. She was awarded scholarships from the IAA Foundation and the Henry County Farm Bureau. Martens has diverse work experiences in agriculture, including John Deere, Wyffels Hybrids, U of I College of ACES, Rock Island County Farm Bureau, and National FFA. At the U of I, she has served as ACES Student Council president, Student Advancement Committee chairman, and public relations co-director for the ExplorACES Steering Committee. This summer, she will be the official hostess at the Illinois State Fair and the DuQuoin State Fair.

Page 13 Monday, January 28, 2013 FarmWeek

from the counties

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OND — Farm Bureau and Country Financial will host a market outlook and risk management meeting at 9 a.m. Tuesday, Feb. 5, at the Farm Bureau office. Dale Durchholz, AgriVisor market analyst, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Call the Farm Bureau office at 664-3100 or 664-1341 for reservations or more information. UREAU — 2013 county plat books are available at the Farm Bureau office. Spiral-bound and eBook options are available for sale. ALHOUN — Farm Bureau and Daniel Eberlin, Country Financial representative, will co-sponsor a crop insurance program at 10 a.m. Friday, Feb. 1, at the Riverdock Restaurant in Hardin. Call the Farm Bureau office at 5762233 to register. • Farm Bureau’s annual meeting will be at 6 p.m. Saturday, Feb. 23, at the Calhoun Community High School in Hardin. • Farm Bureau will sponsor a trademark logo meeting at 10:30 a.m. Tuesday, March 26, at the Riverdock Restaurant in Hardin. Call the Farm Bureau office at 576-2233 to register. HAMPAIGN — A truck regulation and crop insurance seminar will be from 8 a.m. to 12:30 p.m. Tuesday, Feb. 12, at Parkland College in the Tony Noel Center. Kevin Rund, Illinois Farm Bureau transportation expert, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Call the Farm Bureau office at 3525235 to register or for more information. HRISTIAN — The International Ag breakfast will be at 7 a.m. Thursday, Feb. 21, at the U.S. Bank community room. Pamela Moses will be the speaker. Deadline for reservations is Feb. 14. LARK –- The EastCentral Illinois Ag Expo will be at 8:30 a.m. Thursday, Feb. 7, at Richard’s Farm Restaurant in Casey. Cost is $9. FFINGHAM — Farm Bureau, South Central FS, and Country Financial will sponsor a risk management seminar from 10 a.m. to noon Thursday, Feb. 7, at the Farm Bureau office. Contact Rachel Myers at 352-5096 for reservations by Feb. 4. • Farm Bureau and the First National Bank of Dieterich are sponsoring a trip from 5 a.m. to 9 p.m. Thursday, Feb. 14, to the National Farm Machinery Show in Louisville, Ky. Cost is $35 for Farm Bureau members and bank customers and $45 for non-members and includes transportation and dinner. Call the Farm Bureau office at 342-

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2103 or Larry Ring, First National Bank of Dieterich, at 925-5225 for reservations or more information. Deadline for registration and payment is Wednesday, Feb. 6. • The Young Farmers Committee will sponsor an Illinois hunter education program from 6:30 to 9:30 p.m. Friday, March 15, at the Farm Bureau office. There is no charge to participate. Call the Farm Bureau office at 342-2103 to register or for more information. AYETTE — Farm Bureau and Country Financial representatives will host a market outlook and risk management meeting at 1 p.m. Tuesday, Feb. 5, at the Farm Bureau office. Dale Durchholz, AgriVisor market analyst, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Call the Farm Bureau office at 283-3276 or visit {fayettefb.com} for reservations or more information. ASPER — The annual meeting will be at 6 p.m. Monday, Feb. 4, at the Sunrise Community Center in Newton. Call the Farm Bureau office to register by Feb. 1. EE — Farm Bureau membership appreciation dinner will be at 6 p.m. Tuesday, Feb. 19, at the Amboy Community Building. U.S. Rep. Adam Kinzinger (R-Manteno) will be the speaker. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net by Feb. 11 for reservations. • Farm Bureau Foundation scholarships are available to high school seniors and undergraduate students who are studying agriculture-related fields of study. Contact the Farm Bureau office at 857-3531, email leecfb@comcast.net, or go to {leecfb.org} for an application or more information. Application deadline is Feb. 1. • Farm Bureau Foundation will sponsor a Books by the Bushel Program for organizations in Lee County. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net for an application or more information. Application deadline is Feb. 1. CLEAN –- Young Leaders will host a social evening at 6:30 p.m. Tuesday at Pit Row in Heyworth. Call 663-6497 or email anna@mcfb.org for more information. • Farm Bureau Foundation scholarship applications are available at {mcfb.org/scholarships}. Applications must be postmarked by Feb. 1. ONROE — Farm Bureau will sponsor a Viewpoint meeting at 6:30 p.m. Wednesday at Bully’s in Columbia. Call the Farm Bureau office at 939-6197 for reservations.

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• Farm Bureau Foundation scholarships are available for high school seniors who will further their education in an agriculture-related field of study. Contact the Farm Bureau office at mcfarm@htc.net for an application. Application deadline is Feb. 15. ONTGOMERY — Farm Bureau Foundation scholarships are available to students entering college during the 2013-2014 school year who are a Farm Bureau member or child of a Farm Bureau member and pursuing an agriculturalrelated field of study. Six $1,500 scholarships will be awarded. Applications are available at {montgomerycountyfb.com}. Application deadline is noon Monday, March 11. EORIA — Farm Bureau will host a crop insurance meeting at 9 a.m. Wednesday at the Farm Bureau auditorium. Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speaker. • Prime Timers will met at 10 a.m. Wednesday, Feb. 6, at the new Caterpillar Museum in Peoria. Call the Farm Bureau office at 686-7070 for reservations. • Farm Bureau will sponsor a family fun day at 11:15 a.m. Saturday, Feb. 9, at the Mt. Hawley Bowl. Cost for three games will be $5 for adults and free for children 6 to 12 years. Call the Farm Bureau office at 686-7070 for more information. ICHLAND — Richland and Lawrence Farm Bureaus will sponsor a marketing meeting at 7:30 a.m. Thursday at The Holiday in Olney. Dale Durchholz, AgriVisor market analyst, will be the speaker. Contact the Richland or Lawrence Farm Bureau office to register. T. CLAIR — Young Farmers will host a blood drive from 3 to 7 p.m. Tuesday at the Farm Bureau building. Call the Farm Bureau office at 233-6800 for more information. TEPHENSON — A preview program for the Sept. 8 to 15 trip to Cuba will be at 7 p.m. Tuesday at the Farm Bureau office. Mike Campbell from Chamber Explorations will speak about the trip. Call 232-3186 or go to {stephensoncfb.org} for more information. • Details for the Aug. 12 to 18 trip to Michigan and Ontario Canada are available at {stephensoncfb.org} or by calling 232-3186. • Farm Bureau will sponsor an Internet basics class from 6:30 to 9 p.m. Tuesday, March 5, and a basic Word and Excel class from 6:30 to 9 p.m. Thursday, March 7. Classes are free for members, $10 per class for non-members, and $15 for both classes for non-members. Call

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232-3186 to register. • Stroke Detection Plus will offer ultrasound screening for detection of arterial blockage from 9 a.m. to 4:30 p.m. Tuesday, Feb. 5, and Wednesday, Feb. 6, at the Farm Bureau office. Members will receive a discount. Call 877-732-8258 to schedule an appointment. • Farm Bureau will sponsor a bus trip Wednesday, March 20 to the John Deere Tractor Works and Engine Works in Waterloo, Iowa. Cost is $30 for members and $40 for nonmembers. Call 232-3186 for reservations. • Farm Bureau will sponsor a bus trip Sunday, April 21, to Conklin’s Barn II Dinner Theatre in Goodfield to see “Out of Order.” Cost is $60 for members and $65 for nonmembers. Call 232-3186 for reservations. • Farm Bureau will sponsor a bus trip Saturday, May 11, to Chicago. Drop off points will include Navy Pier, downtown shopping district, and the museum complex. Cost is $25 for members and $30 for nonmembers. Call 232-3186 for reservations. • Farm Bureau will sponsor a defensive driving class from 10 a.m. to 3 p.m. Wednesday, April 24 through Thursday, April 25. Doug Sommer will be the instructor. Cost is $15 for members and $25 for non-members. Call 232-3186 to register. ERMILION — The Young Leader Committee will meet at 7 p.m. Tuesday, Feb. 5, at the Farm Bureau office. Members under the age of 35 may attend. • Farm Bureau will host a crop insurance and truck regulation seminar from 8 a.m. to 12:30 p.m. Friday, Feb. 15, at the Danville Area Community Col-

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lege Bremer Center auditorium. Kevin Rund, Illinois Farm Bureau transportation expert, and Doug Yoder, Illinois Farm Bureau risk management specialist, will be the speakers. Register at {vcfb.info} or call 309557-3207. AYNE — Farm Bureau will sponsor a chartered bus trip on Wednesday, Feb. 13, to the National Farm Machinery Show, Louisville, Ky. Cost is $20 for members and $40 for nonmembers and will include dinner at the Logg Inn in Haubstadt, Ind. Seating is limited. Call the Farm Bureau office at 842-3342 to register or for more information. • Farm Bureau Foundation scholarship applications are available at {waynecfb.org}. Application deadline is March 31. HITE — The Young Leader Committee will sell ads for the 2014 county plat book. Call the Farm Bureau office at 382-8512 to advertise or for more information. • Farm Bureau will sponsor a photo contest called “Picture White County.” The winning photograph will be used on the cover of the 2014 county plat book. Contest rules are available at {whitecfb.com}. Deadline to submit photos is April 30. • Young Leader collegiate scholarship applications are available at {whitecfb.com}. Application deadline is March 31.

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

Travelwith Travel withother other F Farmers! Farmers! National Parks T Tour our of the G olden West Depa p rt Jullyy 12 & August g 23,, 2013 from

14

Days

$1358*

Fly into Las Vegas for one night. Then you will begin your tour and visit landmarks in NINE NA ATIONAL TIONAL PARKS. Witness the giant Redwood trees in Kings g Canyon and Sequoia q National Parks, then be amazed at the rock formations and water falls in Yosemite National Park. Visit majestic Lake Tahoe and Reno, stop in historic Virginia City, Winnemucca and Wendover, Nevada. In Utah tour the world’s largest man-made excavation – the Kennecott Copper Mine plus the Great Salt Lake! Next tour the unique rocks Arches’ National Park; and Canyonlands, onlands with enchanting vistas car ved by the Colorado and Green Rivers. Next visit Capit p ol Reef and drive through the Dixie National Forest to Bryce Canyon National Park. Then it ’s the grandest of all National Parks, The Grand Canyon,, for o both a day and night. Finally, tr y your luck in exciting Las Vegas with an included day excursion to Zion National Park. *Price per person, based on double occupancy. Air fare is extra. Other depar ture dates available. Seasonal rates may apply.

For F orrreservations eservations & details call call77da days ysaawweek: eek:

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FarmWeek Page 14 Monday, January 28, 2013

proFitability

The U.S. becomes net exporter of diesel fuel U.S. crude oil production averaged 6.3 million barrels per day in 2012, allowing for a scale-back on crude oil imports. Concurrently, many refiners have invested in desulfurization units, hydrocrackers, and cokers which make it possible to use much cheaper crudes as their feedstock, thereby increasing their margins. Crude quality, once the primary determinate of pricing, lately has taken a back seat to logistics. Pipeline infrastructure in the U.S. was designed for imports, not exports. The U.S. has been importing crude since 1952 with the majority arriving at the Gulf Coast. Infrastructure projects

BY JACKIE MCKINNIS

In October 2011, the U.S. became a net exporter of diesel fuels and other refined products. This was possible through the combination of several different circumstances. High oil Jackie McKinnis prices led to the rapid growth of production in the U.S. Technology advances, such as horizontal drilling in conjunction with hydraulic fracturing, have allowed oil recovery from shale rock and greatly enhanced domestic oil output.

NRCS announcesWRP signup date The Natural Resources Conservation Service (NRCS) is accepting applications for the Wetlands Reserve Program (WRP). The first cutoff date is March 1. “WRP was reauthorized by Congress with the extension of the 2008 (farm bill),” said Ivan Dozier, NRCS state conservationist. “The re-authorization allows for NRCS to begin taking applications immediately.” All applications ranked and inspected that meet the land eligibility requirements will be considered for funding on April 5. WRP is a voluntary program that allows landowners to protect, restore, and enhance wetlands on their property. To be considered eligible for WRP, applicants must have farm records established with the Farm Service Agency. The geographic area rate caps used to establish easement payments have increased significantly for FY 2013, said Dozier. For more information, visit your local USDA Service Center, NRCS field office, or go online to {www.il.nrcs.usda.gov/programs/farmbill/index.html}. Select the link to Wetlands Reserve Program.

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.

Range Per Head $32.25-$56.74 $65.89-65.89

Weighted Ave. Price $44.04 $65.89

This Week Last Week 79,976 93,214 *Eastern Corn Belt prices picked up at seller’s farm

Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $82.19 $79.84 $60.82 $59.08

Change $2.35 $1.74

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week $122.13 $122.34 -$0.21 $122.88 $123.16 -$0.28

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 $145.17 $148.15 -$2.98

Lamb prices NA

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 1/17/2013 48.1 21.9 11.0 1/10/2013 41.3 10.7 9.6 Last year 36.4 17.8 36.5 Season total 908.7 561.7 283.7 Previous season total 676.6 638.8 648.8 USDA projected total 1345 1050 950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

are under way that will help to relieve the glut of crude that has accumulated in the Midcontinent as a result of increased domestic crude and imports from Canada. Railroads are being used to transport crude from North Dakota to the East Coast. This has been a good boost for the rail industry, and one that should continue for the next few years. The high input cost of crude since 2008 caused several refineries worldwide to shut down. As

environmental standards in the U.S. and Europe have increasingly demanded ultra-low sulfur distillate products, crude oils with a low sulfur content reached unsustainable prices. Several refiners without the capital to adapt to denser, higher-sulfurous crude processing closed. Historical pricing relationships between benchmark crudes changed, with crude in North America falling in price and European crude rising in price.

Several refinery closures meant tight global stocks for distillate products. Cheaper crude as a feedstock means competitively priced products, and the U.S. became a net exporter of refined products. Low global distillate stocks, combined with anemic demand in the U.S., helped create this export opportunity. U.S. demand was lower through most of 2012 as compared to 2011. Emerging countries such as China continue to be the big drivers of diesel demand. U.S. diesel exports have contributed to below-normal stocks in the U.S., but with spot month prices higher than deferred months, there is no incentive to hold onto extra product. Exporting refined products out of the U.S. is a trend that looks likely to continue. Jackie McKinnis is GROWMARK’s energy analyst. Her email address is jmckinnis@growmark.com.

Japan plans to ease restrictions on U.S. beef imports BY DANIEL GRANT FarmWeek

U.S. beef export projections for this year received a huge boost last week. Japan announced it plans to ease restrictions on U.S. beef imports as early as Friday. The change will allow the U.S. to ship beef to Japan that was sourced from cattle 30 months of age or less. Japan currently restricts imports of U.S. beef from cattle that are no more than 20 months of age. “This single change will provide a major boost to U.S. beef exports,” said Philip Seng, president and CEO of the U.S. Meat Export Federation (USMEF). “It’s an opportunity for the U.S. to regain lost sales to the highest margin market in the world.” Japan was the largest buyer of U.S. beef prior to the finding of BSE in a Washington state cow in 2003. Japan prior to its ban in 2003 imported $1.3 billion worth of U.S. beef, which was 37 percent of beef export sales that year. Japan banned imports of U.S. beef late in 2003 and didn’t reopen its market (with restrictions) to the U.S. until 2006. In the

meantime, Japan sourced and continues to source much of its beef from Australia. “This is a great sign,” said Monica Stevens, a beef producer from Altona (Knox County) and immediate past chairman of the Illinois Farm Bureau Young Leader State Committee. “Any market opportunity we have to sell our products is phenomenal.” Stevens recently represented IFB at a USMEF meeting in Nashville. IFB is a USMEF member. She said increasing beef exports will be important to help U.S. cattle producers survive volatile times. “It’s a unique time (in the cattle industry),” Stevens said. “We have record prices for cattle but we also have record-high inputs (and regional feed shortages). I love raising cattle, but it’s pretty risky right now.” USMEF recently projected U.S. beef exports will increase from 2.49 billion pounds ($5.5 billion) in 2012 to 2.73 billion pounds ($6.2 billion) this year. If realized, this year’s beef exports would be record highs. “It’s an exciting opportunity for us in the beef industry (to expand sales to Japan),” Stevens added.

Surprising cattle report friendly to market The cattle market could trend December at 1.66 million head, higher this week as USDA Fridown 1 percent from a year ago. day surprised many traders with The trade’s average pre-report its cattle on feed report estiestimate called for a 4 percent mates. jump in placeCattle and ments. FarmWeekNow.com calves in U.S. Marketings of For full details and analyst com- fed cattle totaled feedlots as of ments on the cattle on feed re- 1.75 million head, Jan. 1 totaled port, go to FarmWeekNow.com. 11.19 million down 2 percent head, down 6 perfrom last year. cent from a year ago and 1.4 per“We’re probably at the peak of cent below the trade’s average cattle on feed for the year,” Applepre-report estimate. hans said. “The placements (esti“The report was very friendmate) was even more friendly.” ly,” Troy Applehans, CattleFax Applehans predicted an uptick market analyst, told FarmWeek. in the cattle market this week. “The on-feed number was below However, he believes the expectations.” market peak could be capped by The estimates of placements reduced beef demand that in feedlots and marketings of caused packers to reduce slaughfed cattle also were bullish. ter numbers. USDA pegged placements in “We’ve got tremendous front-

end supplies,” the analyst said. “I think the highs will be disappointing to the market in general. We feel the limit of spring highs will be around the low $130s (per hundredweight).” — Daniel Grant

Page 15 Monday, January 28, 2013 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Wheat exports could improve Wheat export sales and shipments continue to fall short of the pace needed to achieve USDA’s 1.050-billion-bushel forecast. But the pace of sales the last two months has improved while the pace of shipments has remained more sluggish. The resulting increase in the number of bushels of wheat sold but not yet shipped has consistently increased since the fall. That implies the pace of shipments should improve as winter progresses. That would be consistent with world buyers needing to source more of their needs from the traditional exporters given the halt to Black Sea area shipments and the smaller Australian crop. Whether wheat exports

might achieve USDA’s target in the end is still debatable, but the slightly stronger sales at least give it a fighting chance. The story for corn is quite different. Both corn sales and corn shipments lag the pace needed to achieve even the lower 950-million-bushel figure USDA forecast earlier this month. The lag in corn sales is especially significant as sales become a better sign of what might lie ahead with the marketing year approaching its midpoint. With the bushels sold but not yet shipped being well below the last two years and the five-year average, is an important indicator of things to come — or not such as the case may be. Sales must soon start to accelerate to give corn a chance to meet that 950-million-bushel target. From a historical perspective, that’s a low number. The last time the U.S. exported less than 1 billion bushels of corn was during the 1971-1972 market year.

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ü2012 crop: Near-term prices could shift sideways on a lack of fresh fundamental news. However, we are still in the mindset that prices should eventually work higher. Target a move to $7.60-$7.70 on March futures for catch-up sales. We might add to sales if prices reach that level. Check the Hotline. ü2013 crop: The positives of the old-crop situation will help support new-crop prices. December corn may stall near $6 but has potential to move modestly higher if old-crop prices move up. Continue to use rallies near $6 for catch-up sales. It’s too soon in the turn upward to add to sales, but we might if December hits $6.25. Check the Hotline. vFundamentals: Corn recently has been riding the coattails of the wheat market, as it surged on less-than-desirable crop conditions in the U.S. Southern Plains. However, fresh news has become thin and this has resulted in a stagnant market. Going forward, corn should draw support on tight old-crop supplies and dry conditions throughout the Midwest going into the spring months.

Soybean Strategy

ü2012 crop: The trend has shifted lower following a wetter weather forecast for Argentina and southern Brazil, but the downside threat should be minimal. Use a rally to $14.75 on March futures for catch-up sales. Plan to add to sales if March pushes past $15. Check the Hotline. ü2013 crop: Use rallies above $13 on November 2013 futures for catch-up sales. We might add an increment if November pushes to $13.25$13.50. vFundamentals: Demand for soybeans remains good, as was reflected in news from USDA that 510,000 metric tons (18.7 million bushels) of soybeans were sold to China for delivery during the 2013-2014 marketing year and 113,000 (4.2 million bushels) were sold to unknown destinations. However, early harvest already is under way in portions of South America, which will soon bring fresh supplies into the pipeline and increase export competition. Despite the near-term forecast

calling for some welcomed moisture in Argentina, there continues to be talk that production already could have been decreased due to dryness earlier in the season.

Wheat Strategy

ü2012 crop: Wheat prices have slipped back slightly following the recent surge. However, it is unlikely prices will test the $7.36 low in the Chicago March contract. Longer-term, the market still has the possibility of making another higher move. Wait for a bounce back to the $7.87 region before making any needed catch-up sales. ü2013 crop: If you failed to

pull the trigger, wait for a bounce back to the $8 region in the Chicago July contract. Newcrop sales stand at 35 percent complete. vFundamentals: Over the past few sessions, the wheat market has taken the path of least resistance, which has been to drift lower. The market has lacked any fresh significant news to continue to feed the “bull.” In addition, the current weather forecast is calling for a half inch of rain to fall across portions of the U.S. Southern Plains. While it is certainly not enough to replenish moisture reserves, any moisture is welcome at this point.

FarmWeek Page 16 Monday, January 28, 2013

perspectives

A strong safety net critically important

‘Gangnam Style,’ the insect way Man isn’t the only creature that can cut a rug, but dance has another meaning for the six legged

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he South Korean musician Psy became an international celebrity in 2012 with his song, “Gangnam Style.” The song’s video was the first to be viewed more than a billion times on the Internet. The song has a catchy beat, but it was the rather humorous dance moves of Psy that made “Gangnam Style” a worldwide sensation. This is not the first time a type of dance has captured people’s attention. The jitterbug began in the early 20th centur y as a type of swing dance and spread across the world during World War II. The name jitterbug includes the word “bug,” but it appears unrelated to insects. There is at least one TOM dance with a name related to TURPIN arthropods. It is an upbeat-tempo, Italian folkdance called the tarantella. The name comes from the popular belief that the bite of a wolf spider can cause a frenzied condition known as tarantism. Dancing the tarantella was purported to be a way to overcome the effect of the spider bite. For sure, humans dance. Some birds also dance. And some insects. And spiders, too. Probably the most recognizable of the spiders that dance are those known as jumping spiders. These small spiders have large eyes, and both pairs of front legs are longer than their back legs. Their dances involve leg waving and leg-and-abdomen tapping. So spider dances, like human dances, also involve sound. Some butterflies also dance. The butterfly dances include a type known as a spiral dance. The butterflies spiral upward on the

wing while following each other. A human dance, the Hopi butterfly dance, is sug gestive of a real butterfly spiral dance with the brightly attired dancers following each other. Flies dance to impress the females of their species. Some of these dances, like that of the butterflies, are aerial perfor mances; others are with feet on the g round. Dung beetles, the insects that roll around balls made of mammal manure, also dance. It has been sug gested that dancing on top of the manure ball allows the beetle to cool itself. All insect dances, and most human dances, pale in comparison to the dance of the honey bees. This dance is known as the wag gle dance because of the signature move of the dancing bee. That move involves waggling the abdomen from side to side. Here’s how the dance g oes. The dancing bee moves in a straight line while shaking her abdomen — in the bee dance only the female workers par ticipate. Then, the dancer circles right or left and retur ns to the star ting point. There she repeats the wag gle por tion of the dance and tur ns in the opposite direction. It is sometimes called a figure-eight dance because the bee creates such a shape during the perfor mance. The amazing aspect of the honey bee dance is that dancing transmits direction and distance to a nectar source. It’s a functional dance. But because it is called the wag gle dance, some might conclude that it ranks right up there with the cha-cha, the twist, or the macarena for pure enter tainment. Unlike humans, insects don’t do a little soft-shoe just for the fun of it! Tom Tur pin is an entomology professor at Purdue University, West Lafayette, Ind. His email address is tur pin@purdue.edu.

At the beginning of this to turn when the going is espeNew Year, we at USDA are cially tough. redoubling our efforts to But the importance of these achieve an adequate, defensiprograms doesn’t stop at the ble safety net for producers, edge of the farm field. A more economic opportunity strong agriculture sector through the biobased econoimpacts every American. Amermy, safe and nutritious food ican agriculture provides more for Americans, robust efforts than 80 percent of our food to carry out research, and supply here at home. greater conserOur prosperity enables the vation of our U.S. to export billions of dolnatural lars worth of agricultural prodresources. ucts around the world, supportTo further ing more than one million jobs. our efforts in Our productivity means that these areas, I American families pay less for hope to work their food at the grocery store with Congress than the people of any develTOM this year to oped nation. VILSACK secure passage One in 12 jobs is related to of a compreagriculture — including in our hensive, multiyear food, farm biggest cities. When the busiand jobs bill. ness of agriculture is thriving, One very important part of more jobs are created in transsuch a bill is to provide a safe- portation, packaging, processty net for America’s ing, and producers, who face sales. And a great deal of when farmThis isn’t just ers and uncertainty in their work — both from ranchers are critical for Mother Nature and successful, farmers — it’s they invest market prices. Historically, the their important for inoperation, farm bill authorizes USDA to provide spurring every disaster assistance manufacAmerican. for producers and turing and step in with help greater when they face business volatile markets. opportunity. For example, prior to the At USDA we are committed expiration of the 2008 farm to doing everything we can to bill disaster programs, USDA support a thriving agriculture was able to provide more than sector. Unfortunately, without a 400,000 disaster payments comprehensive, multiyear farm totaling more than $4 billion bill, it’s tougher to provide a in assistance. smart and defensible safety net. In fact, had the programs This isn’t just critical for not previously expired, we farmers — it’s important for would have been able to proevery American. That’s why I’ll vide an estimated $500 million continue to work with Condollars in additional help for gress over the coming year to drought-impacted livestock secure a five-year farm bill that producers in 2012. will give our producers the This safety net assistance tools they need to grow and helps our farmers and ranchers thrive. focus on growing more for our nation — and it ensures that Tom Vilsack is the U.S. secretary of farm families have somewhere agriculture.

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