Farmweek july 15 2013 by Illinois Farm Bureau

Mother Nature wreaked havoc last week across Illinois. Storm systems featured damaging wind, rain and hail. ................................................2

Aging Midwest infrastructure upgrades and export potential will depend on public-private partnerships. ............................................4-5

Farmland prices could be due for a downward correction, pressured by lower crop prices and higher interest rates. .......................8

A service of

Can stripped-down House farm bill be conferenced? Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, July 15, 2013

BY MARTIN ROSS FarmWeek

In a move opposed by Illinois Farm Bureau, the U.S. House Thursday passed a farm bill plan stripped of nutrition provisions that have sparked House division but have also been crucial in garnering urban farm bill support. IFB President Philip Nelson now hopes a bipartisan HouseSenate conference committee can reconcile the strippeddown House measure and a

Two sections Volume 41, No. 28

comprehensive Senate package. Unlike the Senate plan, House Resolution 2642, approved by a 216-208 party

FarmWeekNow.com

Listen to a live-streamed news conference with IFB President Philip Nelson Wednesday at 9 a.m. at FarmWeekNow.com.

line vote, would replace 1949 “permanent” ag law, a traditional default position in the event of current farm bill expiration,

GREEN BEANS GALORE

in this case on Sept. 30. Last week’s proposal appeared to Republican leaders “the only way to get a farm bill into conference,” IFB National Legislative Director Adam Nielsen said. A June farm bill vote failed as House leaders clung to a $20 billion food stamp target and new Supplemental Nutrition Assistance Program (SNAP) recipient requirements that alienated Democrats. The Senate bill includes $4

Tons of green beans bound for Del Monte Foods drop from a harvester in Ron Armburst’s field near Manito in Mason County. A Wisconsin harvest crew last week made quick work of the 50-acre field. Each semiload holds 25 tons of vegetables. Armburst grows about 150 acres of green beans. (Photo by Cyndi Cook)

billion in 10-year SNAP funding cuts and elimination of direct payments. Senate Ag Chairman Deb Stabenow, DMich., indicated she was open to a conference despite the possible deal-breaking absence of SNAP provisions that comprise 80 percent of the farm bill. “IFB opposed H.R. 2642 because it would break up the farm bill coalition, eliminate the incentive to write future farm bills and threaten the future viability of crop insurance,” Nelson advised. “Despite our opposition, IFB will continue to play a constructive role in the farm bill debate. We urge House leadership to appoint conferees and encourage all parties to work in good faith to enact a mutually acceptable, bipartisan, five-year farm bill that provides longsought-after policy certainty for farmers and consumers alike.” Several commodity groups supported House approval while lamenting House strategy. National Corn Growers Association President Pam Johnson was “dismayed with the process that leads us to this sad situation,” and warned elimination of 1949 permanent law — a prospect that spurred January’s 2008 farm bill extension — leaves farmers without “some mechanism to force (congressional farm bill) action.”

IFB was hopeful House Ag Committee member Rodney Davis, a Taylorville Republican, might be selected as a farm bill conferee. Davis, according to Nielsen “a champion of crop insurance who’s been sensitive to our priorities,” suggested conferees now could “begin to iron out our differences.” Davis noted the House plan saves $20 billion in long-term ag funding “while repealing or consolidating more than 100 programs administered by the USDA and strengthening our crop insurance program.” The House bill also would replace direct payments with a new revenue protection program. Under a House “closed rule,” program, critics were blocked from introducing amendments aimed at gutting crop insurance subsidies. The Senate has proposed a 15 percent reduction in premium subsidies for producers with annual adjusted gross income above $750,000, as well as crop insurance conservation compliance requirements. The House’s move “challenges us to keep the coalition of nutrition, conservation, commodities and rural development moving together,” Nielsen said. He suggested lawmakers could move beyond last week’s “brief foray into partisanship.”

immediate rights to legally carry concealed guns. Illinois Farm Bureau policy supports an appropriate process for granting a license to qualified gun owners to carry a concealed firearm and that was achieved in the compromise legislation, according to Bill Bodine, IFB associate director of state legislation. The new law also establishes a consistent, statewide process for receiving a license, Bodine noted. “It’s been a hard-fought battle (over concealed carry legislation),” said Rep. Charles

Meier, R-Okawville. Before voting to override Quinn’s veto, the Senate passed an amendment to make three technical changes to the concealed carry bill. Those changes clarified which places would not have to post signs banning concealed firearms, added law enforcement notification of mentally ill individuals and required police to be immediately notified about a concealed gun. The House did not concur with the amendment, and those changes weren’t added to the law.

Periodicals: Time Valued

State gains concealed carry law, legal challenge BY KAY SHIPMAN FarmWeek

Wrangling over a state concealed carry law continues. The General Assembly voted to override Gov. Pat Quinn’s amendatory veto of concealed carry legislation last Tuesday. The next day, a legal challenge was mounted in federal court over the length of time before initial licenses will be issued. With a 77-31 vote in the House and a 41-17 vote in the Senate, both chambers achieved the super majority required to override Quinn’s

amendatory changes. The General Assembly took action to address the concealed carry issue before the July 9 deadline set by a federal appellate court. Under the new law, the Illinois State Police has 180 days to develop and make license applications available and another 90 days to issue the initial licenses. Mary Shepard, the woman who brought the original concealed carry lawsuit, and the Illinois State Rifle Association filed for an injunction in the U.S. District Court for southern Illinois. They are seeking

FarmWeek on the web: FarmWeekNow.com

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

Quick Takes

WEATHER

FarmWeek Page 2 Monday, July 15, 2013

USDA NAMES PREFERRED BIOBASED PRODUCTS – Eight new biobased product categories joined USDA’s preferred federal procurement list last week. The new categories include aircraft and boat cleaners, automotive care products, engine crankcase oil, gasoline fuel additives, metal cleaners and corrosion removers, microbial cleaning products, paint removers and water turbine bearing oils. The Biopreferred Program was authorized in the 2002 and 2008 farm bills. There are 97 designated categories representing approximately 10,000 unique products. The Biopreferred Program’s web portal has reopened for companies to apply for the voluntary USDA Certified Biobased Product label. About 900 products have received the label. Later this year, a rule is expected to be finalized for the program that will designate intermediate ingredients, so products made from them could be part of the preferred federal procurement process. The regulation would also allow for the designation of complex assemblies that contain one or more components from biobased ingredients.

DISASTER ASSISTANCE GOES MOBILE – The Illinois Emergency Management Agency has activated a new mobile version of its Ready Illinois website. The site at {m.ready.illinois.gov} enables mobile device users to access information about emergency preparedness and recovery, weather and man-made hazards. Smartphone and tablet users can also get updates on current disasters, including road closures and shelter locations.

ZIP CODE CELEBRATES 50 YEARS – Long before smartphones, email and even faxes emerged as chosen methods of communication, the ZIP code was born. Fifty years later, the U.S. Postal Service still relies on the ZIP code to efficiently sort mail according to small, geographic areas. Prior to its birth in 1963, mail was sorted by address. The post-World War II era saw a large surge in mail volume, which made hand-sorting nearly impossible.

FARMERS SEE CROP INSURANCE AS GOOD INVESTMENT – Farmers continue to view crop insurance not only as protection from weather risk but also as a good investment. National Crop Insurance Services recently reported more than 440,000 policies have been processed through participating companies and the Risk Management Agency, as of July 8. These policies protect 129 million acres representing more than $39 billion in liabilities and $1.5 billion in farmer-paid premiums. The numbers are expected to grow as more policies are processed and farmers complete planting.

(ISSN0197-6680) Vol. 41 No. 28

July 15, 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 goes toward the production of FarmWeek.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2013 Illinois Agricultural Association

STAFF Editor Chris Anderson (canderson@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

Most Illinois crops in good shape; storms inflict localized damage Effects of the wettest spring on record linger in a cornfield farmed by Robert Wiese, left, and his father, Dean. The 200-acre field near Carlinville (Macoupin County) was planted after June 15, accounting for the short height. (Photo by Cyndi Cook)

BY DANIEL GRANT FarmWeek

Crop conditions around the state remained favorable last week despite more challenges from Mother Nature. A storm system last week flattened corn in some areas and pelted crops with heavy rainfall and, in some cases, hail. “There were spots where the corn was pretty flat,” said John Fulton, University of Illinois Extension director in Logan, Menard and Sangamon counties. “And there was a fair amount of hail.” Fulton predicted much of the flattened corn in his area will bounce back. However, some could remain goosenecked and difficult to harvest this fall. “Even if the yields are not affected, the time (required to harvest it) could be greatly affected,” he said. “Part of the problem is the extreme rainfall conditions that accompanied (the July 10 storm).” Rainfall at some locations during the mid-week storm totaled 1 to 3.5 inches in a short duration, Fulton reported. The recent rainfall came on the heels of the wettest first half of the year on record. Precipitation in the state from January through June averaged 28.7 inches, about 9 inches above average, according to the Illinois State Water Survey. The wet conditions delayed planting, drowned out crops in low spots in some fields and could slow development of soybeans in some areas, according to Shaun Casteel, Purdue Uni-

A strong windstorm left cornstalks throughout Edgar County snapped and leaning. The storm blew through the area the middle of last week. (Photo by Sarah Reedy, Edgar County Farm Bureau manager)

versity Extension soybean specialist. “We had a late start (planting beans), but we caught up in a hurry,” Casteel told FarmWeek at the Top Farmer Crop Workshop at Purdue. “The big thing right now is areas with saturated soils. The beans are kind of stagnant.” Saturated soils lower the amount of oxygen available for crop uptake, Casteel noted. “There’s a potential for less pod production (in late-planted beans),” he said. August weather, as is usually the case, will be the key determinant of soy yields. Casteel urged farmers to increase management practices to boost future soy yields. Timely planting, the use of narrow rows and testing soil to ensure proper fertilization are three keys to increasing soy yields, he said. “We’ve done surveys the last three years and I continue to be amazed how short the soil is on potassium,” said Cas-

teel, who noted that 30 to 40 percent of field tests in Indiana are below optimal levels of potassium. Overall, 73 percent of soybeans and 68 percent of the corn crop was rated in good to excellent condition last week in Illinois. “Things look very good right now, considering the extremely late start,” Fulton added. “Corn is tasseling now.”

Gar y Conant shows a chunk of hail that fell on his farm north of Salem (Marion County) last week. Hail hit crops in several other counties as the week unfolded. (Photo by Brad Conant, Perr y County and Washington County Farm Bureau manager)

GOVERNMENT

Page 3 Monday, July 15, 2013 FarmWeek

Former state lab gives college ag program room to grow

applied science degree programs: agricultural business, plant and soil science, animal science The closing of the state Centralia Animal and dairy science. It already offers applied sciDisease Laboratory means laboratories, lecture ence degrees in agriculture and horticulture and rooms and more space for Kaskaskia College’s a transfer agriculture program. (KC) agriculture program. “We’ve been No. 1 in growth on our campus The college’s agriculture and horticulture for several years,” Heinzmann said of the ag faculty and students may move program. “Several community into the shuttered state lab as colleges have dedicated (ag early as January, said Aaron facilities); now we will be up ‘We’ve been No. 1 there, Heinzmann, a Kaskaskia agritoo.” i n gr ow t h o n o u r culture professor. The area, too, will benefit The lab, which sits on the campus for several from the building’s new use, college’s Centralia campus, said Bob Kelsheimer, the Cenyears.’ officially closed Dec. 31 after tralia Chamber of Commerce the last of the drought-related executive director. tests and other work were “This area is a large livestock — Aaron Heinzmann area. It was really a blow when done. State fiscal problems Kaskaskia College ag professor caused the closure and transfer we lost the lab,” Kelsheimer of testing services to the said. The new arrangement Galesburg Animal Disease “sounds like a win-win for the Laboratory. area.” The former state lab adds Gary Kennedy, manager of 45,000 new square feet to the college’s growing the Clinton County and Marion County Farm agriculture and horticulture program. Bureaus, agreed the facility’s new use has great Currently, faculty and students use two potential. The county Farm Bureaus have combination lecture-lab rooms. After the offered computer lab training at the college and move, they will have a couple of lecturemay be able to offer other programs in the new lab spaces and dedicated laboratories, facility, Kennedy said. Heinzmann noted. “We have a great relationship with the local The additional space couldn’t come at a betFarm Bureaus and anticipate doing more with ter time. This fall, Kaskaskia will add four new them,” Heinzmann said.

BY KAY SHIPMAN FarmWeek

Lawmakers lose salaries in Quinn’s pension gambit

State legislators won’t receive salaries or stipends after Gov. Pat Quinn used a line item veto to cut that spending from the new state budget. Quinn said he also will not be paid until comprehensive pension reforms are enacted. The governor took action the day after the General Assembly missed his latest deadline on pension reforms. Meanwhile, Illinois Comptroller Judy Baar Topinka sought a legal review of Quinn’s action before Aug. 1 when legislators’ next paychecks are scheduled. In a prepared statement, the comptroller said her question relates to section 11 of the Illinois Constitution that states “changes in the salary of a member shall not take effect during the term for which he has been elected.” Repeatedly calling the state’s pension debt “an emergency” and “a crisis,” Quinn told reporters he wanted “to have an alarm bell for our legislators ... and the best way to do that is hit them in the wallet.” The governor said he would contact Topinka and not accept his salary until comprehensive public pension reforms are enacted. Last Monday, members of the state pension conference committee said they needed more time to analyze projected savings from different reform proposals. The state’s unfunded pension liability totals an estimated $97 billion to $100 billion. The unfunded liability is the debt owed to cover all long-term expenses for retirees and current employees. The governor said he used his line-item veto authority to give Illinois taxpayers leverage because taxpayers are paying for lawmakers’ failure to pass pension reforms. “It’s time for legislators to understand they are going to have to pay ... until they act,” Quinn said. — Kay Shipman

Crop insurance key topic for county policy talks

BY MARTIN ROSS FarmWeek

With the future of the U.S. farm safety net in question, Illinois Farm Bureau’s Resolutions Committee (RC) is asking members the hard questions about risk management and the farm safety net. Mark Tuttle, chairman of the RC’s Ag Policy-National Issues Subcommittee, adds one more query for policymakers and consumers

focused on last year’s droughtrelated insurance payouts and federal premium subsidies. “How many farmers are farming this year because of crop insurance,” the DeKalb County Farm Bureau president posed after the RC’s initial 2013 policy discussion in Bloomington. “There are probably parts of the insurance program that may need to be changed, but Farm Bureau needs to be at the table

FAIR SEASON IN FULL SWING

with our legislators to get sound crop insurance programs.” Crop insurance is one of five RC “discussion topics” submitted for county Farm Bureau review this summer, along with privacy rights regarding precision farming data, emergency 9-1-1 funding needs, renewable fuels and water quality. FarmWeek will publish an in-depth policy discussion supplement with its Aug. 5 issue. The RC will reconvene in November to formulate final 2013 policy proposals for farmer-member approval in December. Amid budget and other

issues likely to drive further farm program cutbacks and limits, the RC is asking members to weigh the possibility of crop insurance as “the only publicly subsidized safety net in the future.” Tuttle stressed premium subsidies are “not like a total gift to farmers.” In 2012, Illinois farmers paid nearly $328 million out of pocket to insure corn, soybean and wheat acres. “There is personal responsibility there,” he argued. In addition, county Farm Bureaus will consider the ramifications of two issues included in Senate farm bill propos-

als: crop insurance conservation compliance and adjustment of subsidies to individual farm income levels. The RC is seeking input on the harvest revenue option that currently is the default offering in Revenue Protection policies. The Senate averted debate over subsidizing the harvest revenue option. Tuttle’s committee also seeks broader feedback on risk management issues. “The membership needs to be actively involved in this, and the insurance companies need to be involved,” he maintained.

FSA extends acreage reporting deadline; RMA deadline done

Kyle Yoder of Edinburg joins hundreds of exhibitors across the state as he grooms his Hereford heifer in preparation for showing at the Christian County Fair. July boasts more than 60 local fairs in Illinois. (Photo by Cyndi Cook)

Last week, USDA Farm Service Agency (FSA) Administrator Juan Garcia announced extension of the FSA acreage reporting deadline for an additional 18 calendar days. Today was the originally scheduled deadline for farmers and landowners to submit their annual report of acreage to their local FSA county office. “We want to ensure our producers maintain their program benefits by filing their reports accurately and in a timely manner for all crops and land uses, including prevented and failed acreage,” Garcia said. The July 15 acreage reporting requirement for crop insurance purposes was not changed, despite a request from Illinois Farm Bureau to USDA’s Risk Management Agency (RMA). Accurate acreage reports are necessary to determine and maintain eligibility for direct and countercyclical program payments, the Average Crop Revenue Election Program, the Conserva-

tion Reserve Program and the Non-insured Crop Disaster Assistance Program. Acreage reports for FSA are considered timely this year when filed at the county office by the new applicable final deadline of Aug. 2. Producers should contact their county FSA office if they are uncertain about reporting deadlines. Meanwhile, RMA Administrator Brandon Willis reminded farmers to report any springinsured crop loss within 72 hours of discovery to their insurer and to report prevented planting acreage to their insurance company, in writing, within 15 calendar days after their final crop planting date. Losses must be reported and an insurance adjuster must view and release the crop before the crop is destroyed. Farmers are also reminded to contact their insurance agent if they have any questions about coverage, prevented planting or for reporting and processing a claim.

TRANSPORTATION

FarmWeek Page 4 Monday, July 15, 2013

House WRDA odds ‘50-50’; timing deemed crucial If lawmakers don’t act on waterways legislation in a timely way, measures aimed at upgrading river navigation could founder in a whirlpool of fall congressional issues. That’s according to Soy Transportation Coalition Executive Director Mike Steenhoek, who fielded mixed signals regarding House Water Resources Development Act (WRDA) passage during visits on Capitol Hill and with U.S. Army Corps of Engineers officials last week. Forecasts ranged from “5050 odds” on the House Transportation and Infrastructure Committee’s approving a package by August recess, setting the stage for an early fall floor vote, to dim prospects of a post-August WRDA “markup” making it to the floor by year’s end, Steenhoek said. “If there’s going to be this whole debate over the debt

ceiling and about financing the government after the end of the fiscal year Sept. 30, that’s going to suck up most of the oxygen in the room,” he warned FarmWeek. Transportation/Infrastructure Chairman Bill Shuster, RPenn., has been “pretty guarded in his intentions” toward floor actions, Steenhoek reported. He perceived an “overall” positive feeling among Corps representatives for Senateapproved WRDA provisions that would help streamline Corps procedures and encourage new public-private partnerships in river improvements (see accompanying story). The plan would provide new resources for forecasting disruptive weather conditions along stretches of the Illinois and Mississippi rivers. Shipping and producer interests hope House lawmakers will add an industry-supported increase in barge fuel taxes

aimed at shoring up the Inland Waterways Trust Fund, which matches and thus is integral to congressional approval of federal project funding. Project authorization is only part of the equation. Congressional appropriations are necessary to implement proposed lock projects. Steenhoek noted the lion’s share of some $3 billion in fiscal 2014 cuts under House energy and water appropriations measures are focused on Department of Energy funding. But while Steenhoek reported Corps officials applauded the Senate bill’s “aspirations,” he acknowledged Corps skepticism about achieving those goals without a long-term “certainty of funding” from year to year. A 6-cent-per-gallon increase in barge fuel taxes would help address that uncertainty. Lawmakers could view proposed new private partnerships as a further waterways

Partnering up is key to unlocking aging Midwest infrastructure and thus ag export potential. That’s the view of marketers, shippers and developers

who tout the role of public-private partnerships or “P3s” in upgrading and linking the transportation systems that move Illinois crops and ag products. Senate Water Resources

Development Act provisions sponsored by bipartisan Illinois lawmakers would enable pilot partnerships to help leverage funding for much-needed river navigation upgrades.

BY MARTIN ROSS FarmWeek

Illinois Farm Bureau President Philip Nelson discusses current congressional ag issues with U.S. Sen. Dick Durbin, a Springfield Democrat who supports provisions encouraging inland waterway partnerships in Water Resources Development Act legislation. Durbin also co-authored Senate-approved bipartisan provisions to help make Illinois and the Midwest better prepared for extreme weather events like droughts and floods. (Photo courtesy of Sen. Dick Durbin staff)

spending offset, depending on whether “private equity coming in is displacing (existing) government funding” or merely supplementing federal funds, Steenhoek said.

“This isn’t (the Corps’) first rodeo,” he stressed. “They’ve had a number of times before where they’ve been ordered to do things, but funding hasn’t followed.”

P3s today are critical to any “large-scale development,” according to Eric Gilbert, senior vice president for infrastructure and logistics with Oak Brook-based firm CenterPoint Properties. CenterPoint’s helped bring together Class I and regional rail carriers, East and West Coast ports, ocean carriers and diverse businesses to explore evolving cargo/transportation needs. One of its major success stories is the CenterPoint Intermodal Center on the former Joliet Arsenal site, which combines cargo container storage and loading, truck/rail “transloading” and bulk warehouse distribution facilities. CenterPoint also is working with the South Carolina Port Authority on an inland port venture to import BMW engines and transmissions via containers that could be used for subsequent exports. Meanwhile, Archer Daniels Midland Co. (ADM) has joined with Illinois officials, three Class I railroads and major container companies to develop a new Decatur-area “Midwest Inland Port” — a hub not only for outbound corn, soybeans and ADM products but also for incoming goods and materials. ADM Transportation President Scott Fredericksen argues the plan was “built around good economic sense.” By providing a new conduit for incoming freight, developers hope to benefit regional development while forging partnerships with other

businesses that can complement ag, he told FarmWeek. But private interests looking to capitalize on new multimodal transportation capabilities require policymakers and government agencies “to take that first initial step” in assuring viable base infrastructure, Fredericksen argued. “We can all create things, but we need somebody who pulls us together,” he said. “They need to give us a sense of direction of where they want policies, procedures and things to apply, so we can follow.” Soy Transportation Coalition Executive Director Mike Steenhoek notes the role partnerships have played in the rail industry. As a result of the 1980 Staggers Act, which deregulated freight rail, an industry once “suffocating on itself ” is today operating at a much higher level, he said. At the same time, he noted rail partnerships have focused on regional capabilities, and thus service today varies across geographies and freight sectors. While the U.S. Army Corps of Engineers oversees river development, waterway P3s could follow a similar path, he suggested. “The investment has to make sense,” Steenhoek told FarmWeek. “You could go through this exercise and ultimately find that private equity says it’s willing to invest only in certain portions of the inland waterway system.” — Martin Ross

Partnerships crucial to functional infrastructure Agency/community bridge-building key to safeguarding the ‘first mile’

It’s referred to by some as the “first mile” — that crucial one or two or 10 miles from farm to market. If Point A and Point B are separated by a crumbling or outdated bridge, that one or two or 10 miles can become 10 or 15 or 40, and farm profits can erode. A new survey by Transportation for America indicates more than 8 percent of Illinois bridges are “structurally deficient.” Federal Highway Administration (FHWA) Illinois Transportation Engineer Jim Allen argues interagency/community “transportation coalitions” and innovative project financing are crucial to assuring seamless ag transportation on the state’s aging roads and bridges. In an RFD-FarmWeek interview, Wabash County FarmWeek Cropwatcher Kevin Raber noted the importance of the Interstate 64 bridge between Illinois and Indiana in moving grain across the nearby Wabash River for Ohio River shipment. In September 2011, the I-64 Sherman Minton Bridge between Indiana and Kentucky closed after construction crews found cracks in its main load-bearing structure. Repairs were finished a few months later and it reopened in February 2012. Raber fears a potential 15-cent reduction in his per-bushel crop prices if the Wabash County I64/Illinois 15 bridge was shut down even for a brief period and “we couldn’t get to the river as easily.” “If we don’t have good market access, good

roads and good infrastructure, farm prices just kind of deteriorate,” Archer Daniels Midland Co. Transportation President Scott Fredericksen told FarmWeek recently. Illinois rural traffic rose steadily from the 1970s to 2003, when it began to plateau, Allen said. But he reported rural average daily load continues to grow, with higher per-axle loadings testing local and U.S. highways that serve as farm-toriver terminal/farm-to-processor routes. Allen noted “progress made” across Illinois, but cited the need for most states to come up with a 20 percent match for federal funding to address continued problems. He sees several options for state, county, township, municipal and private partnerships. They include tying into larger intermodal infrastructure projects, and leveraging funds through government-backed bonds or federal Transportation Infrastructure Finance and Innovation Act loans or guarantees. Private sector donations of funds, project materials or services can help expedite state project funding approval, Allen said. Individuals or businesses can even contribute project right-of-way to get projects moving, he said. Further, a private entity can take on design, finance, construction or another project facet. Allen said FHWA encourages consideration of partnerships “where appropriate,” but he stressed eligible projects must be “in the public interest and attractive to private investors.” — Martin Ross

GLOBAL AG

Page 5 Monday, July 15, 2013 FarmWeek

Storage, transportation issues for booming Brazil

Commodities Conference July 31 in Normal Brazil has been able to increase soybean and corn exports despite some daunting storage and transportation challenges â&#x20AC;&#x201D; a phenomenon that according to Daniele Siqueira â&#x20AC;&#x153;has amazed many people around the world.â&#x20AC;? Siqueira, analyst with South American market consulting firm AgRural Commodities Agricolas, will share observations on a changing Brazilian agriculture during Illinois Farm Bureauâ&#x20AC;&#x2122;s 2013 Commodities Conference July 31 at Normalâ&#x20AC;&#x2122;s Marriott Hotel

and Conference Center. University of Illinois ag economist Peter Goldsmith argues that while tropical climates that allow year-round farming would seem to be a tremendous advantage, corn and soybean farmers in the Brazilian state of Mato Grosso face an abundance of grain followed by a roughly 10 percent post-harvest loss due partially to a lack of storage. Inadequate storage has been a â&#x20AC;&#x153;huge problemâ&#x20AC;? in Brazil for many years â&#x20AC;&#x201D; â&#x20AC;&#x153;since ever, actually,â&#x20AC;? Siqueira

told FarmWeek. She thus was intrigued by the U of I research and the possibility it might help determine the most â&#x20AC;&#x153;convenientâ&#x20AC;? locations for added storage; she noted Goldsmith â&#x20AC;&#x153;understands very well the problems we have down here.â&#x20AC;? The Brazilian government

announced in early June that it will finance construction of private storage facilities to the tune of around $11 billion over the next five years. â&#x20AC;&#x153;All our problems will be solved with that? Of course not,â&#x20AC;? Siqueira admitted. â&#x20AC;&#x153;But that is very good news. Storage, however, is only one of the many infrastructure problems that Brazil faces every year. â&#x20AC;&#x153;Our terrible roads and the high dependence on trucks to transport our grains are the worst and the most famous one, but we also have prob-

lems with our ports. Besides the fact that our production is increasing in the north and our main ports are located in the south, these ports are running out of capacity and have serious problems of maintenance.â&#x20AC;? Brazilian corn export will be a major topic of her Commodities Conference presentation, along with the heightened potential of â&#x20AC;&#x153;safrinhaâ&#x20AC;? â&#x20AC;&#x201D; a second corn crop planted after soybean harvest â&#x20AC;&#x201D; and anticipated Brazilian infrastructure improvements.

tion in the developing world, Gianessi warned. â&#x20AC;&#x153;Middle-class populations are increasing rapidly as people move into cities and to jobs and industry,â&#x20AC;? he noted in an RFD Radio-FarmWeek interview. â&#x20AC;&#x153;People are shopping in malls all over China, all over India. As they move into the middle class, their desires for food change: They want to eat meat, they want to eat vegetables. â&#x20AC;&#x153;The world has to step up and make sure there are enough feed crops. Illinois corn and soybeans are absolutely critical in helping feed the middle class around the world.â&#x20AC;? Sustainability is a key

adjunct to global productivity. Boosting yields with chemical controls contributes to forest preservation and reduces carbon emissions by protecting undisturbed soils. Chemical-free field cultivation might be â&#x20AC;&#x153;an acceptable alternativeâ&#x20AC;? in some areas in two of every three years, Gianessi said. But he warns unforeseeable weather conditions and untimely cultivation could result in the loss of as much as a quarter of Illinoisâ&#x20AC;&#x2122; corn and soybean crop every third year â&#x20AC;&#x153;if pesticides werenâ&#x20AC;&#x2122;t used.â&#x20AC;? Pesticides offer the best option for controlled â&#x20AC;&#x153;terminationâ&#x20AC;? of valuable cover crops

and selective herbicide enables conservationists to promote certain wildflower species that nurture bee populations, he said. Further, pesticides help communities and homeowners fight annoying and potentially disease-transmitting mosquitoes, ticks, and bedbugs. â&#x20AC;&#x153;When EPA approves a label for a pesticide in this country, itâ&#x20AC;&#x2122;s a scientific determination based on more than 120 health and environmental/worker protection-type studies,â&#x20AC;? Gianessi added. â&#x20AC;&#x153;EPA says that product can be used with a reasonable certainty of no harm. What more can you tell a consumer?â&#x20AC;?

FarmWeekNow.com

Visit FarmWeekNow.com to register online for the upcoming IFB Commodity Conference in Normal.

Pesticides key to promoting sustainable ag? BY MARTIN ROSS

Leonard Gianessi offered Illinois Farm Bureau staffers something to chew on with their brown-bag Leonard Gianessi lunches â&#x20AC;&#x201D; a primer on pesticides and a hungry planet. Gianessi, director of the Crop Protection Research Institute and consultant with the CropLife Foundation, outFarmWeek

lined the global benefits of ag chemical use as part of IFBâ&#x20AC;&#x2122;s ongoing Lunch-n-Learn series. The Washington-based Peoria native sees a U.S. lack of education about agriculture as one of the major challenges facing farmers. He argued â&#x20AC;&#x153;food is safe in this country, and itâ&#x20AC;&#x2122;s certainly safe from any concerns about pesticides.â&#x20AC;? As world populations surge toward a projected 9 billion mark, â&#x20AC;&#x153;ignorance about how our crops are raisedâ&#x20AC;? is a threat to â&#x20AC;&#x153;continued high-yield agriculture in the United Statesâ&#x20AC;? as well as to sustainable produc-

PESTICIDES AND THE PLANET Leonard Gianessi, director of the Crop Protection Research Institute, outlines some of the lesser-known aspects of global pesticide use: â&#x20AC;˘ Productivity in the heart of poverty. Hand weeding has persisted in many of the planetâ&#x20AC;&#x2122;s poorer regions. But as developing world farmers move toward higher-yielding practices in the face of urban out-migration and middle class growth, Gianessi deems herbicides the crucial â&#x20AC;&#x153;first input.â&#x20AC;? Amid a worldwide â&#x20AC;&#x153;rapid increase in herbicide use,â&#x20AC;? the U.S. and major chemical manufacturers, as well as responsible government agencies, can lead the way in assuring safe, environmentally conscious production, he suggested. â&#x20AC;&#x153;In Africa, in a lot of village squares, youâ&#x20AC;&#x2122;ll see briefcase salesmen with (crop protection) products theyâ&#x20AC;&#x2122;ll make claims for,â&#x20AC;? he told RFD Radio and FarmWeek. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re adulterated products; theyâ&#x20AC;&#x2122;re off-label products; they donâ&#x20AC;&#x2122;t have any instructions for farmers; they donâ&#x20AC;&#x2122;t work as well. â&#x20AC;&#x153;One of the biggest issues facing the industry is convincing governments around the world to enforce their regulations and make sure farmers get the best products with the lowest safety risks and use them according to label.â&#x20AC;? â&#x20AC;˘ Chemicals and climate. Pesticides can play a key role in helping mitigate and help producers adapt to global climate change, Gianessi said. More efficacious, minimum till-friendly chemicals help reduce energy use and thus carbon emissions. According to some forecasts, serious climate shifts could claim 10 percent of African corn production, but Gianessi argues judicious chemical use could boost existing production by 300 percent. Amid projections of higher average temperatures particularly along the U.S. East Coast, he anticipates heightened insect and other pest pressures and advises that â&#x20AC;&#x153;insecticides and fungicides are going to be critical to managing those.â&#x20AC;? â&#x20AC;˘ Systems and applications. Pesticides are merely part of an overall crop system that includes biotech crops that rein in pests and contribute to use of safer chemicals and conservation practices that help prevent chemical runoff. Gianessi noted industrywide efforts to combat weed resistance to existing herbicides, from expanded research to development of advanced management practices. However, he sees federal registration of new chemicals with multiple modes of action as â&#x20AC;&#x153;the tool thatâ&#x20AC;&#x2122;s most critical for managing resistance going forward,â&#x20AC;? he said. â&#x20AC;&#x201D; Martin Ross

We ar are are

Your FIR Your RST ST Ch Choic ce fo or Appra aisa als.

"HSJDVMUVSBM 'JOBODJOH t 3VSBM )PNF -PBOT t "QQSBJTBMT --FBTJOH t "HSJCVTJOFTT BOE NPSF F B T J O H t "H S J C V T J O F T T B O E N P SF

t XXX TUGBSNDSFEJU DPN t XXX TUGBSNDSFEJU DPN 1st FFarm arm C Credit redit SServices ervices is an equal oppor opportunity tunity pr provider. ovider.

FarmWeek Page 6 Monday, July 15, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We have had a fairly typical week as far as July weather goes. We had a few days of hot, muggy weather and ended up with 0.25 of an inch of rain. Some of the earliest-planted, short-season corn is showing some tassels. There should be many more fields tasseling this week. Most farmers are finished with post-spraying of soybeans. Second cutting of hay is well under way, and no wheat has been combined yet. We hope to try some wheat this week to check moisture levels. Pete Tekampe, Grayslake, Lake County: A beautiful week in Lake County. We had five showers last week, but none in my area amounted to more than getting the sidewalk wet. I noticed some pineappling effect on the corn Thursday afternoon on the clay hills. Most of the corn is head-high and will be tasseling in seven to 10 days. Beans are growing fast, but also could use a shower. Winter wheat is turning fast and probably needs another week yet. Leroy Getz, Savanna, Carroll County: Several warm days last week and rain on June 28-29 totaled 1.4 inches. Corn is tasseling and silking with multiple ears. I’ve noticed how large the stalks are and the strengths of the roots. Japanese beetles are appearing in soybean fields and some control may become necessary. A few wheat fields and rye have been cut, but most are still waiting. Several beautiful days to make second crop alfalfa. Growing degree units now total 1,356, which is 250 less than last year. Ryan Frieders, Waterman, DeKalb County: Winter wheat will soon be harvested in the area. The earliest-planted corn will be shooting tassels in the next few days. Corn has grown rapidly with the sunshine and warm temperatures of the last weeks. Soybeans are flowering and also growing nicely to fill in rows. Japanese beetles are beginning to show up in fields. It has not yet been determined if control will be needed. Larry Hummel, Dixon, Lee County: The weather has been perfect for sweet corn pollination. Now if we can keep it coming for field corn. Tassels are just starting to push out on the earliest-planted corn. So the majority of the pollination will occur over the next two weeks. I’m starting to see some foliar diseases on the corn leaves — common rust and gray leaf spot. Not a big surprise with all the rain we have had this summer. Not much for insect activity yet, but the Japanese beetles are starting to show up locally. I hear some spraying has already occurred on the east side of Lee County. Joe Zumwalt, Warsaw, Hancock County: The wet weather of spring has given way to a warm and dry weather pattern. Both the corn and soybeans are looking decent, just behind normal. The heat and dryness is putting stress on the corn crop along with its shallow roots. Irrigators are running frequently lately. The big story seems to be the Japanese beetles, which are voraciously eating the soybeans and then moving onto corn silks and tassels. Scout often as I’ve learned they can devastate a crop in just a few days. Corn borers have shown up in higher populations than we have seen in recent years as well. Ken Reinhardt, Seaton, Mercer County: I had less than one-tenth of an inch of rain last week. Other spots in the county had more, but not over 1 inch. April-planted corn is starting to tassel. Mid June-planted corn is knee-high. I sprayed some soybeans for Japanese beetles. It will probably take more applications, as they seem to swarm the sprayer laughing at your efforts. It was a pleasant week for the 160th Mercer County Fair.

Ron Moore, Roseville, Warren County: We only received one-tenth of an inch of rain last week. We are starting to get dry, even after record spring rains. Several fields of early-planted corn are now tasseled. I would expect fungicide applications will start this week. The early-planted beans are starting to close the 30-inch rows and are beginning to flower. Japanese beetles are everywhere and becoming a problem. We may have to add an insecticide to the fungicide spray. Pastures are still in good condition despite the dry weather. Jacob Streitmatter, Princeville, Peoria County: Scattered showers took place earlier last week, but only leaving a few tenths when it was over for most of the area. The corn in the path of the last flash flood is now showing signs of nitrogen deficiency. In the last few days, the Japanese beetles have made their appearance. They have been devouring trees and now have found some of my soybean fields. Some of the corn that got planted early and lived is starting to shoot tassels. Tim Green, Wyoming, Stark County: It was a nice week. Cor n is star ting to show a few tassels. We are starting to see a little more of uneven fields as it gets bigger. A little bit of yellow corn is showing up. It seemed like it was gone there for a while, but now it’s back. The low spots are obviously not doing well where the stalks are standing, and it’s kind of stunting the corn. Not too many bugs yet. There are Japanese beetles more over to the very east side of the county. We noticed them the other day when it got a little warm. They were in the fruit trees and around the houses pretty bad, but not in cornfields yet, and I hope the population does not get that high. People are starting to talk about the Marshall-Putnam Fair and the Peoria Fair. Mark Kerber, Chatsworth, Livingston County: Corn will soon be tasseling, as it is a little behind this year. We have been watering sweet corn, as eastern Livingston County remains dry. Soybeans have been sprayed and are now outgrowing the dead weeds. We found a chemical that kills marestail for about $10/acre. Japanese beetles are around. Watch your corn silks for damage. Also, rootworm beetles will be emerging soon. Livingston County fair is this week. Come out and support our local fair. Ron Haase, Gilman, Iroquois County: We had light showers on Tuesday and Wednesday, amounting to about 0.15 of an inch. The major farm activities were post-emergence herbicide applications in corn and soybean fields and mowing of roadsides. Area corn development ranges from the V7 growth stage up to VT as tassels are emerging. Soybean development ranges from V3 up to R1. The local closing bids for July 11 were nearby corn, $7.02; new-crop corn, $5.08; nearby soybeans, $16.02; new-crop soybeans, $12.65. Brian Schaumburg, Chenoa, McLean County: Our May 2 corn has tasseled and later-planted fields are showing a flag leaf as most corn prepares for its reproductive stage. With good soil moisture, we should get through pollination even with higher temps. Soybeans are in a range from V1 to R1. Crop prospects are looking at a 10-year Olympic average with corn showing the greatest potential. Bean crop is no record setter. No insect problems as of yet. Wheat harvest is starting with early yields ranging from fair to average. Corn, $7.05, fall, $5.08; soybeans, $16, fall, $12.66; wheat, $6.63.

Steve Ayers, Champaign, Champaign County: Our weekly excitement came in the form of a powerful storm just before noon on Wednesday that dropped a tenth of an inch of rain to more than 3 inches in a little over an hour. We had 0.93 of an inch, and amounts increased as we went east into Vermilion County. We now enjoy a perfect fair weather forecast through the weekend with lows in 50s to highs in the 80s. Corn is growing rapidly, more is tasseling and some fields have a wavy appearance. Beans are closing rows and herbicide spraying is wrapping up. See you at the Champaign County Fair that runs July 19-27! Wilfred Dittmer, Quincy, Adams County: It’s certainly not getting any wetter in our little corner of the county. The crops could certainly use a drink. Our gauge only picked up about a tenth of an inch last week. A lot of corn has tasseled in the southern part of the county, while northern parts are sporting more of a knee-high average. Soybeans are basically short yet, not many with much height. Sprayers have been busy. Close-by wheat is harvested and straw baled while others are making hay, getting ready for the fair and general farm chores. And, yes, the Japanese beetles have emerged in the ornamentals by the numbers. Have a safe week wherever you may be. Tom Ritter, Blue Mound, Macon County: Major rains fell last Wednesday on the north half of Macon County, totaling up to 8 inches. The southern portion had less than 1 inch with my immediate area only getting two tenths of an inch. Starting to see some corn tasseling. I have corn anywhere from tassel to just above knee-high, depending upon planting date. The ponded areas and compaction areas are nice and green, but height is shorter and you are seeing that reflected with the time the tassels are shooting. The earliest-planted soybeans are closing the row, but we also have beans that are only 8 to 10 inches high. Overall, crop prospects still look good, but it’s going to be a very late fall. Hopefully, we can avoid extreme heat in August with a lot of silking still going on in that time frame. Todd Easton, Charleston, Coles County: Wheat growers finally found a window right after the Fourth. Yields ranged from the 60s to the 80s with fungicide applications proving to be beneficial after the very wet spring. Most of the remaining soybean fields were sprayed. Just about the time sprayers and combines wrapped up most of their work, an aggressive storm front rolled through putting around 1.5 inches of rain in barely dried-out rain gauges and inflicting wind damage in rapidly growing cornfields. April-planted corn has begun pollination. As for the other 98 percent of the corn crop, pollination should begin in the next week or so. We can only hope that the weather cooperates. Jimmy Ayers, New City, Sangamon County: This past week we received 0.5 of an inch of rain at our place. The southern end of the county got approximately 0.2 to 0.3 of an inch. Right through the center, there was a band of 3 and sometimes almost 4 inches. There was flash flooding in some of the areas north of Springfield. Corn is responding well to the warmth and the moisture certainly helped out a little bit. We have seen a little bit of corn rolling. Corn is ranging anywhere from V3 to V11, but it hasn’t tasseled. About 10 percent has already pollinated. Soybeans range from V2 and V3 up to first flowers on a few plants. Pretty much most of the spraying has been done. Marestail has been extremely hard to contain this year. There was 95bushel wheat harvested pretty close to us. I think the range is anywhere from 40 to 78 bushels and some up into the 90s. Baling of straw and hay has been pretty consistent in the last week. Be sure to slow down at the intersections and the roadsides are dangerous this time of the year.

Page 7 Monday, July 15, 2013 FarmWeek

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: We cut wheat and baled straw last week. Wheat never did get dry. We doublecropped beans into wheat straw. Soil was pretty wet and we had a hard time closing the seed trench. We received anywhere from 1 to 1.4 inches of rain so that should help. About 2.3 inches fell north of Findlay. Corn is close to tasseling around home. Soybeans were sprayed ahead of the rain. Some of the waterhemp and marestail is probably not going to be killed. Mowed hay and baled it last Saturday (July 6). Have a safe week. David Schaal, St. Peter, Fayette County: We received about 1.5 inches of rain in the last week. Some places in the county had up to 5 inches. Since the first of June, we have had around 14 inches of rain. Corn for the most part looks pretty good, unless it is in a low or poorly drained area. Some soybean stands are on the thin side. There is ground in the county that has not been planted for the first time. Wheat harvest is over, but that also was a struggle this year due to rain and high humidity. Most wheat yields were 55 bushels per acre, and some up to the mid-80s. Test weights were around 60 pounds at the beginning of harvest and dropped down to around 55 pounds after a few rain showers. Dan Meinhart, Montrose, Jasper County: Most of the week was very hot and humid. It rained several days last week with some areas receiving heavy rains. For some, it has been more than a month since they have been able to plant. Wheat harvest is pretty well wrapped up. Test weights have suffered due to all the rain. Some straw baling has been done. Sidedressing of corn has been taking place by land or air. Post chemicals were sprayed this past week. Most cornfields have extreme stress due to the excessive amounts of rain. The height of the corn varies tremendously within the same field. In the low areas, it is very yellow and extremely short. The beans planted about three weeks ago have very poor stands. Hopefully, the planters will be able to roll in a few days.

Dave Hankammer, Millstadt, St. Clair County: What a difference warmer and drier conditions can make. With temps reaching into the low-90s and little rain last week, field conditions improved enough to allow a flurry of fieldwork. Many farmers finished harvesting wheat. As the combines left the fields, planters quickly rolled in, planting a second crop of soybeans or milo. Farmers finished planting first-crop soybeans in fields that had been soggy due to the persistent rain showers. Post-herbicide applications increased and the battle against marestail continues. Several fields of hay were made while the sun shined and farmers took advantage of the rare opportunity of nice weather. In the cornfields, I’ve noticed the deer population has been snacking on the whorl of the plants along field edges, leaving behind a useless plant. Local grain bids are: corn, $6.57; soybeans, $15.48; wheat, $6.69. Have a good week.

Jeff Guilander, Jerseyville, Jersey County: We finally made it to the middle of July. The earliest corn is starting to pollinate. Soybeans look good with some starting to close the rows. Spraying, for the most part, worked better than expected, but there are still enough weeds to remind us of the problems.

Dean Shields, Murphysboro, Jackson County: This past week’s weather was fairly dry. We had a few showers that didn’t amount to much. The river is still a problem for us in the bottom ground. I have a couple hundred acres of water on some of my farm ground. I don’t believe I will get it all planted this year. Corn looks good and is tasseling. Sweet corn is in. Beans look good. The biggest problem with both the corn and beans is the wet spots. I do not grow any wheat, but I’ve been told it looks like it was a pretty good year for wheat down here in our area with good yields. Most of it got double-cropped and is looking good, too. A lot of guys are finishing up their spraying and thinking about doing some vacationing.

Randy Anderson, Galatia, Saline County Where is this summer going? In just over a month, the kids go back to school. It just doesn’t seem possible. Crops have improved this past week. We received some light sprinkles this past Wednesday, so the crops had a chance to make some recovery. Finished planting beans where we could, but it’s not the best conditions I ever planted in. Busy two weeks ahead for us here going to Massac County Youth Fair and then our own Saline County Fair. Go out and support the youth at the fair and tell them thanks for having an interest in agriculture. Without them, there is no future!

Rick Corners, Centralia, Jefferson County: We finally missed one — a flood that is. We only had a tenth of an inch of rain last Wednesday. I don’t know whether to be happy or sad. Corn is to the point where it can stand a lot of rain, but soybeans need several days of dry feet. The firstplanted corn — what little there is — is getting close to tasseling. The last planted corn is barely knee-high with the remainder somewhere in-between. Beans are anywhere from pre-emergence to 1 foot tall.

Kevin Raber, Browns, Wabash County: Wheat harvest is over. My yields were the best I’ve ever grown. Yields of 85 to 108 bushel an acre. Test weights are going down with each rain, but luckily I got done before they fell too far. Planting double-crop beans has been tough with the excessive rainfall. The corn looks good. Several fields have been sprayed with fungicide and insecticide. Soybeans have lost some color because of the water-logged soils, but hopefully they will perk up as things dry out.

Ken Taake, Ullin, Pulaski County: We are back to summer weather and activities here in Pulaski County. There has been no rain in our gauge, although up to 1 inch has fallen in some areas of the county. We sure could use some of the rain that other areas are getting too much of. However, compared to last year, we are still in great shape. We finished our first post-spraying of soybeans this past week, but the weed kill has certainly been less than optimum. Before long, we will have to start on our second round. Please have a safe week.

Wheat yields impressive; quality issues emerge Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com

BY DANIEL GRANT FarmWeek

The winter wheat harvest is winding down, particularly in southern Illinois, and yields for the most part have been good. But heavy rains in recent weeks created some quality issues with the remaining crop in some areas. “Harvest started the end of June and everything looked very good,” Dave DeVore, of Siemer Milling in Teutopolis, told the RFD Radio Network. “Test weights were running 59 to 62 pounds and the quality was very good. “But the rains kept coming and we started to see issues,” he continued. “Test weights dropped and we’ve seen other quality issues.” Yields, however, have been very good on many farms. In fact, long-time Irvington far mer Gale Koelling, president of the Washington County Farm Bureau, reported the average wheat yield this year was the highest he’s ever had on his farm. “It averaged around 86 to

‘It averaged around 86 to 87 (bushels per acre), which is as good or better than I’ve ever had in my life.’ — Gale Koelling Washington County farmer

87 (bushels per acre), which is as good or better than I’ve ever had in my life,” Koelling said during an interview with M i k e O r s o, I l l i n o i s Fa r m Bureau director of news and communications. Washington County typically is one of the top wheat pro-

ducing counties in the state. Koelling said his crop was affected, though, by recent rains. “My early wheat was much better,” he said. “Now, with all the rain, some of the test weights are down.” DeVore re por ted wheat

yields in the southeast region of the state ranged from the upper-50s to the upper-80s (bushels per acre). “ Y i e l d s h ave b e e n ve r y good,” he said. The wet pattern in recent weeks delayed harvest in many areas. Wheat harvest in Illi-

nois was 68 percent complete as of early last week compared to 99 percent on the same date last year and the five-year average of 79 percent. “Typically in southern Illinois we’d be done (with wheat harvest) by the end of June,” DeVore added. “But there still are guys with wheat to harvest because it’s been so wet, they can’t get in the fields.” The Illinois Wheat Association this year on its annual tour estimated the wheat yield in southern Illinois would average 61.5 bushels per acre.

USDA goes to bat for Major League Baseball Fewer splinters are flying at Major League Baseball (MLB) stadiums around the country in recent seasons, thanks to innovative research conducted by USDA’s U.S. Forest Service. MLB sought assistance from the Forest Service and funded research conducted by t h e Fo r e s t P r o d u c t s L a b o r a t o r y i n response to a rash of broken bat incidents in recent years that endangered the safety

of players and spectators. The increase in broken and shattered bats coincided with a shift in baseball to the use of more maple bats. The research team found that inconsistency of wood quality was the main cause of broken bats. Also, lowdensity maple bats were found to crack and shatter more often than ash bats or higher-density maple bats.

Manufacturing changes to the bats were established as a result. The rate of shattered maple bats decreased by more than 50 percent since 2008. “I’m proud that our collective ‘wood grain trust’ made recommendations resulting in a significant drop in shattered bats, making the game safer for players as well as fans,” said Tom Tidwell, U.S. Forest Service chief.

PRODUCTION

FarmWeek Page 8 Monday, July 15, 2013

Economists: Big crops could sink corn, bean prices

down to the mid-$4 range for corn and $11-plus per bushel The run of historically high for beans. corn and soybean prices could “The risk in recent years has come to a screeching halt later been on the upside for (crop) this year. prices,” Good said. “The risk USDA last week projected a going forward is on the downbin-buster harvest this fall with side.” a record-large corn crop (nearFarmers looking for a sign ly 14 billion bushels). of the possible shift in prices If realized, corn production need to look no further than would be 858 the current million spread between FarmWeekNow.com bushels larger Listen to the crop report analy- new- and oldthan the cursis from the AgFanatics pod- crop prices. rent record set cast at FarmWeekNow.com. New-crop prices in 2009-10. last week were Meanwhile, below old-crop the Ag Department last week prices by about $1.86 per raised its estimate of U.S. soy bushel for corn and $3.05 for production by 30 million beans. bushels due to a 600,000-acre “With the old crop, we’re boost compared to the previstill dealing with tight stocks ous estimate. U.S. soy producand consumption (is brisk), so tion this year was pegged at I look for continued strong 3.42 billion bushels. prices there,” Good said. Darrel Good, University of “But there’s a large discount Illinois ag economist, speaking for new-crop corn prices,” he last week at the Top Farmer continued. If fall production Crop Workshop at Purdue Uni- estimates are realized, “we versity, projected the current could be back to pre-drought crop production numbers, if price levels.” realized, could pull prices And the lower crop prices, if BY DANIEL GRANT FarmWeek

Darrel Good, left, University of Illinois ag economist, discusses the markets with Michael Yoder, Lovington, last week during the Top Farmer Crop Workshop at Purdue University. Good projected large crops this fall could bring an end to the run of high prices. (Photo by Daniel Grant)

realized, could last for months or even years. Crop production is expected to grow around the world, according to Chris Hurt, Purdue ag economist. “Higher prices draw acreage out over time,” he said. “We’ve got a supply response under way.” Plantings of the 13 top crops in the world since 200506 increased by 147 million acres. The majority of the

additional acres, 120 million, were put into corn and soybeans, Hurt reported. USDA last week also project-

ed a large increase in ending stocks. Endings stocks for 201213 were pegged at 729 million bushels for corn and 125 million bushels of beans compared to 2013-14 estimates of 1.9 billion bushels of corn and 295 million bushels of beans. “It looks like we’re building stocks,” Hurt said. “What that says is, moderating prices.” Jonah Ford, market analyst with Ceres Hedge, believes crop prices will remain volatile the next few months as the crops enter critical grain-fill periods. “We’ll start trading weather again,” Ford said during a teleconference hosted by the Minneapolis Grain Exchange. “If we get ideal growing weather, prices likely will go lower. If we get an early freeze, we could see (the market) turn around.”

Farmland prices possibly poised for downward correction

Farmland prices, which spiked to all-time highs in recent years, could be due for a downward correction. Craig Dobbins, Purdue University ag economist, last week predicted farmland prices in the near future will be pressured by lower crop prices and higher interest rates. “Things are going to tighten up,” Dobbins said last week at the Top Farmer Crop Workshop at Purdue University in West Lafayette, Ind. “(Farm) margins will get smaller.” Economists at the workshop last week predicted crop prices later this year could slip back to pre-drought levels, around $5 per bushel or less for corn and near $11 for beans, due in part to USDA’s estimate of record production. Dobbins estimated even a 10 percent decline in farm income could lead to a 10 percent drop in farmland prices. “It would seem to me current land values are not out of whack (as farm incomes also reached record highs),” he said. “But in the future, it appears margins will be smaller, income growth will be lower and interest rates will be higher.” The combination of a 10 percent drop in farm income and a 1 percent increase in interest rates could lead to as much as a 32 percent decline in farmland prices, Dobbins projected. Dobbins’ estimates mean that a piece of ground currently valued at $7,640 per acre could dip to $5,185 if a drop in farm income and higher interest rates occur in the same year. “We may indeed see a downward correction in land prices,” Dobbins said. “I think the era of seeing 20 percent gains (in land prices) is coming to an end quickly.” Jason Henderson, the new director of Purdue Extension/associate dean of the College of Agriculture, who previously was with the Federal Reserve Bank, echoed Dobbins’ concerns about interest rate risk. “The primary risk in agriculture right now tends to be interest rates,” Henderson said. “When interest rates go up, the value of the dollar tends to go up, and (farm) exports and incomes tend to go down.” Henderson believes the Federal Reserve recently telegraphed its intention to raise interest rates within the next two years. “How will agriculture respond to a narrowing of margins,” he questioned. “Will farmers leverage long-term assets to build working capital (similar to the 1970s)? If so, I think it sets up another bust.” Fortunately, the ag industry generally is in good financial shape at the present time. The debt-to-asset ratio is about 11 percent. But Henderson is concerned about farmers paying high land or cash rent prices with the looming possibility of lower commodity prices/returns. “(Long-term cash rental agreements, of generally three to five years) are a real risk,” he added. “They (farmers who enter such agreements at high prices) have locked in a cost, but they haven’t locked in revenues.” — Daniel Grant

EMERGING ISSUES

Page 9 Monday, July 15, 2013 FarmWeek

Farmer involvement key to nutrient trials, research BY KAY SHIPMAN FarmWeek

Industry-funded nutrient trials and research are influencing farmers’ decisions because farmers are involved, Illinois Farm Bureau advisory team members heard last week. The Conservation and Natural Resources Strength with Advisory Team (SWAT) received updates on the Keep it for the Crop (KIC) program and the Nutrient Research and

Education Council (NREC). NREC research and education projects are funded by a 75cent-per-ton assessment on fertilizer. Dan Schaefer, nutrient stewardship director with the Council for Best Management

Practices (CBMP), described ongoing on-farm trials of different nitrogen rates and application methods. The trials build on information from N Watch, a soil nitrogen monitoring program. “It’s cool to have a farmer call me Sunday at 8 p.m. and say, ‘Your N Watch program is working great.’ He’s doing it himself,” Schaefer said. Results from those nitrogen trials will supply a farmer with

Space still available for campaign seminar Applications are still being accepted for the Aug. 7-8 campaign strategy seminar at the Illinois Farm Bureau office, Bloomington. The program is geared toward potential candidates, candidate spouses, campaign managers and farmers who plan to manage campaign issues. The two-day seminar will provide information about running and winning

a campaign for elected office. Topics will include: selecting issues, building an organization, raising and managing money, working with political parties and developing a campaign calendar. The registration fee is $110 and includes materials, meals and invaluable information. For more information, contact your county Farm Bureau or Kevin Semlow, IFB director of state legislation, at 309-557-3554 or semlow@ilfb.org.

Nutrient management focus of WIU Farm Field Day

Nutrient management will be the theme of Western Illinois University’s (WIU) Aug. 8 Allison Farm Field Day. The event will run from 9 a.m. to 3 p.m. at the Dakin Farm shop and the Allison Organic Farm near Roseville. The registration deadline is Aug. 6 for lunch. The program will offer technical information and on-farm observations, according to Joel Gruver, agriculture professor and director of WIU’s organic research program. Tom Ferguson, a manure specialist, will discuss his company’s pelletized chicken litter product that was evaluated on the Allison Farm this year. Bill Becker, a crop consultant, will explore opportunities to optimize crop health and soil biological activity with nutrient management. A panel of farmers will feature large-scale organic grain farmers in Illinois. After a free meal of local farm products, the program will move to the Allison Farm about 1:30 p.m. for a walking tour of research and demonstration plots.

The plots include evaluation of a variety of soil amendments and biological seed treatments. Equipment will be demonstrated, weather permitting. To register for lunch, call Andy Clayton at 309-298-1172 or 217-322-2639 or the WIU School of Agriculture at 309298-1080. To reach the farm shop from the north, travel on Illinois 67 five miles south of the Illinois 67-Illinois 116 intersection in Roseville to county road 20th Avenue N. Turn west and travel four miles on 20th Avenue to the southeast corner of the Allison Farm (20th Avenue20th Street intersection). Turn left and go south 0.7 of a mile on 20th Street. To reach the farm shop from the south, travel on Illinois 67 seven miles north of the Illinois 67-Illinois 9 intersection in Good Hope to county road 20th Avenue N (two miles north of the Warren County line). Turn west and travel four miles on 20th Avenue to the southeast corner of the Allison Farm (20th Avenue-20th Street

Tuesday: • Ag weather with Chesapeake Meteorology • Jim Bower, Bower Trading • Brian Spannagel, animal care market study tour participant Wednesday: • President Philip Nelson, Illinois Farm Bureau press conference • Amy Bliefnick, Illinois State Fair manager • Ed McDonald, Museum of Science and Industr y director of facilities

and operations Thursday: • Jill Johnson, Illinois Beef Association director of communications • Mike Doherty, Illinois Farm Bureau senior economist • Leonard Gianessi, CropLife Foundation consultant Friday: • Sara Wyant, Agri-Pulse publisher • Monica Nyman, St. Louis District Dairy Council dairy educator • Story time with Alan Jarand

intersection). Turn left and go south 0.7 of a mile on 20th Street.

a “defensible rate” of nitrogen for his farm, soils and practices based on information gained on that farm, Schaefer said. Some of the trials involve strips of nitrogen applied at a standard rate determined by the farmer. Those strips are interspersed with strips of variable nitrogen rates based on soil test results. “We need to take ownership of nitrogen decisions,” Schaefer said. “I know that I and the farmers I work with can make better decisions on nutrient applications than someone in Washington.”

“We are the only ones involving the farmers in the (nitrogen) testing,” added Jean Payne, president of the Illinois Fertilizer and Chemical Association. Howard Brown, CBMP interim director of nutrient utilization and research programs, reported about an onfarm soil nitrogen monitoring project. Nitrogen levels in the top 2 feet of soil are measured over several months. “We will manage nitrogen differently so you will use less nitrogen per bushel produced,” Brown said. “It’s going to be an economic-driven machine.”

IFB interested in nuisance bird reports

The federal government is accepting comments on annual depredation reports on blackbirds, cowbirds, grackles, crows and magpies that damage agriculture crops and livestock. The comment period ends Aug. 30. The U.S. Fish and Wildlife Service wants to know if the burden of collecting the information can be minimized, if the information is necessary and ways to improve collected information. Lauren Lurkins, Illinois Farm Bureau director of natural and environmental resources, would like to hear about the experiences of Farm Bureau members who file the annual reports. Contact Lurkins at 309-557-3153 or llurkins@ilfb.org.

FarmWeek Page 10 Monday, July 15, 2013

FB IN ACTION

Page 11 Monday, July 15, 2013 FarmWeek

Cook County officials see farm-to-table connections Cook County officials and Senate staff recently connected the dots in the farm-totable process during a twoday Staff Exchange Program sponsored by Cook County Farm Bureau (CCFB). Twenty participants learned about farming in the state’s most populous county by touring Ed Miniat, Inc., an international exporter of shortenings and food oils in BY BONA HEINSOHN

South Holland; Ted’s Greenhouse, a family-owned business in Tinley Park; the Chicago Board of Trade and the U.S. Customs Department at O’Hare Airport. “The Staff Exchange Program highlights the county’s connection to farmers and food processors,” said Janet McCabe, CCFB member and public policy team volunteer. “For the second year in a row, we were excited to welcome Cook County officials and their staffs to our program designed to promote Cook County agriculture and food processors.” The program is also designed to strengthen Farm Bureau members’ relationships with local elected officials, McCabe said. The county Staff Exchange Program won the 2012 County Activities of Excellence award.

Karen Biernacki, chief financial officer for Ted’s Greenhouse, explains operational details to Cook County Sheriff’s Department employees Brian Milich and Kerry Wright. They participated in the recent Staff Exchange Program sponsored by the Cook County Farm Bureau. (Photo by Bona Heinsohn)

SCHUYLER COUNTY OIL RECYCLING

Rushville-Industry FFA members, from left, Quentin Thurman, Maggie Prather, Keely Acheson and Damon Reece, help Schuyler County Farm Bureau collect used oil and raise funds. The recent effort brought in 2,000 gallons of used motor and cooking oil at Two Rivers FS in Rushville and Camden with help from Future Environmental of Peoria. The company provided $2,500 for FFA leadership programs and Schuyler County Farm Bureau’s Scholarship Foundation and Ag in the Classroom efforts. (Photo by Schuyler County Farm Bureau Manager Kelly Westlake)

TThere’s here’s Still Still Time. Time. Register Register Today! Today! Join the Class of 2013 – Your You Yo our Seat Sea S eat iis Wa Wait Waiting... iti tiing...

Bona Heinsohn is governmental affairs and public relations director for Cook County Farm Bureau.

Cover crops seminar focus

Cover crops will be discussed from 5:30 to 7:30 p.m. Aug. 1 in the Reynolds American Legion, Reynolds. Meal reservations are due by Thursday. Topics will include: cover crop overview and benefits, funding for cover crops and two farmers’ experiences with cover crops. The meeting is sponsored by the Rock Island County and the Mercer County Soil and Water Conservation Districts (SWCDs). A complimentary meal will be served. For reservations, call the Rock Island SWCD at 309-764-1486, extension 3, or the Mercer County SWCD at 309-582-5153, extension 3.

Cl Class ass St Starts arts at 7:00 7:00 a.m. on W Wednesday, ednesday, July 2244 in Heyworth, Heyworth, IIL. L. Do Do yyou ou wan wantt to to llearn earn about about ttools ools an andd techniques techniques yyou ou can can use use ttoo bboost oost yyour our soybean soybean pproduction? roduction? CClass lass is in session! session! has ppartnered artnered with with Far FFarm arm JJournal The IIllinois llinois So ybean AAssociation ssociation — with with funding funding ffrom rom tthe he Illinois Illinois soybean soybean checkoff checkoff — has ournal to to The Soybean for tthis his valu able learning learning oopportunity. pportunity. sponsor its its re nowned So ybean College. College. An ou’re invited invited ttoo join join the the CClass lass of of 2013 2013 for sponsor renowned Soybean Andd yyou’re valuable dustry-leading gr owers an searchers From cclassroom-style lassroom-style ggeneral eneral ssessions essions to to in-field in-field bbreakouts, reakouts, yyou’ll ou’ll hear hear ffrom rom in From industry-leading growers andd re researchers on ttopics opics that that m atter ttoo yyou ou an our farm’s farm’s bbottom ottom line. line. on matter andd yyour

for

Yo Your our eentire Soybean xperience — inc including luding lunc lunchh and dinner and a steak steak dinn er — is aavailable vailable ntire So ybean College College eexperience fo nly $1 00. But, But, space space is limi ted to to the the first 2200 00 growers growers wh gn uup... p... reserve reserve your your seat seat now! now! forr oonly $100. limited whoo si sign

Register Register now at ililsoy.org/SoybeanCollege. soy.org/SoybeanCollege. or call call (877) (877) 48 482-7203. 2-7203.

FB IN ACTION

FarmWeek Page 12 Monday, July 15, 2013

Matt Engel, second from right, a dairy farmer near Hampshire, discusses his family’s Luck-E Holsteins dairy with participants in a special dairy farm tour last week. (Photo by Cynthia Haskins, Illinois Farm Bureau)

Tour gives reps dairy insights

Dan Stevenson, Illinois Department of Natural Resources, shows a 40-pound catfish netted from Lake Springfield to participants of the recent Sangamon County Farm Bureau Young Leaders Ag Exploration Day. The children learned how fish production ties into agriculture and the environment. (Photo by Ashley Beutke)

Sangamon County hosts Ag Exploration Day More than 130 urban children recently learned where their food comes from during the Sangamon County Farm Bureau Young Leaders Ag Exploration Day. Attendees broke into age groups and visited seven learning stations at the Sangamon County Fairgrounds. At each station, participants enjoyed a hands-

BY ASHLEY BEUTKE

on activity, creating make-and-take crafts. Several New Berlin FFA members helped with the event by developing and presenting two learning stations. Activities centered on such topics as apiary, farm equipment, land and soils, fish life and soybeans. Each participant took home a T-shirt and prizes in addition to their craft projects. Ashley Beutke is the Sangamon County Farm Bureau assistant manager.

Representatives of Illinois health, nutrition, education and local food sectors learned about modern dairy farming and cow care last week. Visitors toured the Luck-E Holsteins farm, owned by the Engel families of Hampshire, and Deutsch Farms, owned by Bill and Pat Deutsch of Sycamore. Matt Engel reported farmers know their cows after working with them for 55 to 88 hours weekly, 51 weeks a year. “Tours like this bridge the gap between misconceptions about farming and the great steps farmers have taken to be good stewards,” said Cynthia Haskins, Illinois Farm Bureau manager of business develop-

ment and compliance. Marla Behrends, Midwest Dairy Association Illinois industry relations manager, pointed out consumers are fortunate to have so many dairies in the area “because most milk gets from the local farm to your store in less than 48 hours.” The entities represented included the Illinois School Nutrition Association, Illinois Department of Public Health, Illinois School Nurses Association, Chicago Public Schools, Farm2Schools, the Farm to School Network, Illinois State Board of Education, Illinois Farm Bureau and Kane County Farm Bureau.

Looking for a Convenient Supply of DEF?

Clark County farmer Jack Crumrin, left, discusses his farm with state Rep. Elizabeth “Lisa” Hernandez, D-Cicero, far right, and members of her Youth Initiative for Civic Engagement group. (Photo by Tony Trimble, Clark County Farm Bureau manager)

Clark County Farm Bureau offers adopted lawmaker, youth farm tour

Look to FS. When it comes to finding the energy products you need, you can rely on FS. If your new equipment uses diesel exhaust fluid (DEF), your local FS Energy Specialist or participating FAST STOP® location has you covered with both package and bulk DEF. Ask about bulk dispensing equipment, too.

Heavy rains didn’t stop state Rep. Elizabeth “Lisa” Hernandez, D-Cicero, her staff and eight members of her youth group, Youth Initiative for Civic Engagement (Y.I.C.E), from learning about farming in Clark County. Recently, the Clark County Farm Bureau hosted its adopted legislator, her staff and the teens for a daylong tour to learn about agriculture and rural life. The representative and the students toured a grain farm, climbed into a tractor and combine, and learned about wheat harvest and irrigation practices. Their most memorable visit was to the Crumrin family farm, which specializes in elk production and game birds. Most of the students had never visited a farm or spent much time in the country. They BY CHRISTINA NOURIE

Scan the QR code to visit us on the web or go to www.GofurtherwithFS.com

said they were amazed at how farmers care for their animals and the technology involved in farming. They made a connection between farming and the food on their plates. Another highlight for the students was a stop at the wellknown Moonshine Store for some famous burgers. The students may have returned home soaked from the rain, but they thoroughly enjoyed their day and said they look forward to sharing what they learned with their families and fellow students. Both the representative and the county Farm Bureau look forward to hosting a similar event in the future.

Christina Nourie is the Illinois Farm Bureau northeast legislative coordinator. She oversees IFB’s Adopt-a-Legislator program.

FROM THE COUNTIES

Page 13 Monday, July 15, 2013 FarmWeek

UREAU — Young Leaders are seeking members for a Princeton FFA Alumni Chapter. Call the Far m Bureau office at 875-6468 or email Jillfrueh.bcfb@comcast.net for more infor mation. • Prime Timers are reorganizing and seeking members 55 years of age and older to join. Call the Farm Bureau office at 875-6468 for more information. • Farm Bureau will sponsor Ag Olympics at 3 p.m. July 25 at the Bureau County 4-H Fair. Call the Farm Bureau office at 875-6468 to register by Monday. HRISTIAN — Farm Bureau will sponsor a cover crop meeting at 6 p.m. July 24 at the People’s Bank and Trust community room. Dave Gentry, GROWMARK, will be the speaker. For reservations, call the Farm Bureau office at 824-2940. EE — Farm Bureau will co-sponsor a blood drive from noon to 6 p.m. July 25 at the Lee County Fair-

C L

grounds. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net to volunteer or donate. • Farm Bureau will cosponsor a field day from 10 a.m. to noon Aug. 8 at the Althaus Brothers Farm in Sublette. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net to register. • The Young Leader Committee will host a cookout at 6:30 p.m. Saturday at Bryan and Andrea Borell’s farm, Amboy. The event is open to members ages 18 to 35. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net for directions and more information. • Farm Bureau will sponsor an Illinois Farm Families spokesperson training session and dinner at 5 p.m. Aug. 1 at the Farm Bureau building. Call the Farm Bureau office at 857-3531 or email leecfb@comcast.net to register. • The Young Leader Committee will sponsor an Italian

Chicago Farmers to tour biomass farm, EIU’s plant

The Chicago Farmers will tour two biomass locations in eastern Illinois Saturday from 10 a.m. to 3:45 p.m. The registration deadline is Thursday. The tour will begin at the Eastern Illinois University Renewable Energy Center, McKinley Avenue and 18th Street, Charleston. The plant uses biomass to produce steam for the campus. At noon, the group will proceed to the Eric Rund farm, Pesotum, for lunch and a biomass program. EIU President William Perry will discuss renewable energy projects. Mathew, Luis and Eric Rund will talk about miscanthus production and inter-planting corn, and guide a walking tour. Tickets cost $25 for adult members and nonmembers and $10 for children ages 12 and younger. To register, go online to {chicagofarmers.org} or call 312388-3276.

Travel with other Farmers!

GRAND EUROPEAN CRUISE D-Day 70th Anniversary

17 Days

Depart April 26, 2014

from

$1599*

Join this unique itinerary for an exciting way to see 7 European countries aboard Holland America’s Eurodam on a 12-night cruise commemorating the 70th anniversary of D-Day. Before embarkation, spend 2 nights in Rome and discover the Eternal City and the Vatican on your included sightseeing tour. The Eurodam sails from Italy to Denmark with port stops in Spain, Gibraltar, Portugal, England, France and Belgium. Sail from the Mediterranean Sea through the Atlantic Ocean and English Channel while learning about Europe’s rich and diverse history in each of the ports along the way. Your journey ends with an included city tour and overnight in Copenhagen. * Per person, based on double occupancy. Price based on inside cabin, upgrades available. Plus $299 tax/service/government fees. Airfare is extra.

For details and itinerary call 7 days a week:

1-800-736-7300

beef food stand from 5 to 7 p.m. July 25 at the Lee County 4-H Fair and Junior Show. IKE — Farm Bureau will host an on-theroad seminar at 1:30 p.m. Tuesday at the Farm Bureau building. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. ANGAMON — Farm Bureau’s annual meeting will be held at 6 p.m. Thursday at the Farm Bureau office. • Farm Bureau Marketing Committee will host a bus trip to Gateway FS Kaskaskia River Barge, World Shooting Range and Recreations Complex and Rural Heritage Museum from 7:30 a.m. to 5 p.m. July 23. Cost is $35 for members and $45 for nonmembers accompanied by a member. Call the Farm Bureau office at 753-5200 for reservations. COTT — Farm Bureau will host an on-the-road seminar at 1:30 p.m. Tuesday at the Farm Bureau building. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker.

P S

ERMILION — Farm Bureau is taking orders for fresh peaches from Rendleman Orchards in southern Illinois. Cost is $23 for members and $28 for nonmembers for a 25 pound box. Deadline to order is Friday. Call the Farm Bureau office at 442-8713 or go to {vcfb.info} for more information. • The Foundation will host a Barn Door Open golf outing July 25 at Turtle Run Golf Club in Danville. Call the Farm Bureau office at 442-8713 to sponsor a hole, or register to golf. Proceeds will benefit Ag in the Classroom. ABASH — Young Farmers will host a truck and tractor pull at 5 p.m. Saturday at the Wabash County Fair. All proceeds will benefit Wabash County 4-H and FFA programs. Call the Farm Bureau office at 262-5865 for more information. • Farm Bureau will co-host a market outlook meeting at 7:30 a.m. Tuesday at Hogg Heaven BBQ in Mount Carmel. Cory Winstead, AgriVisor risk management specialist, will be the speaker.

Call 262-5865 or 445-2113 to register. ARREN-HENDERSON — Farm Bureau Foundation will cosponsor a golf outing July 27 at Gold Hills Golf Course in Macomb. Cost is $50 per person or $200 for teams of four. Call 734-9401 or go to {mcdonoughcountyfarmbureau.org/ golf-outing/} to register or for more information. • Farm Bureau Foundation will take orders for Cresthaven peaches from Rendleman Orchards. Cost is $25 for a 25pound box. Call the Farm Bureau office at 734-9401 to place orders by July 26. • Young Leaders will sponsor a bus trip Aug. 17 to the Cubs/Cardinals baseball game in Chicago. Call the Farm Bureau office at 734-9401 for more information. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

PROFITABILITY

FarmWeek Page 14 Monday, July 15, 2013

IFB members to give EU update The ghosts of biodiesel past, present and future BY BRIGETTE HARLAN ture has helped put blending tored much more closely. A at Commodities Conference equipment at more terminal In the Charles Dickens clas- large number of producers BY DANIEL GRANT FarmWeek

Rules and regulations that changed the way European farmers run their operations likely will impact U.S. farmers, too, according to Brad Temple, Illinois Farm Bureau District 4 director. Temple was one of 11 Illinois farmers/IFB members who recently participated in the IFB European Union animal care study tour. He and tour participants Kate Hagenbuch (a hog farmer from LaSalle County) and Abe Trone (a veterinarian from Stephenson County) will provide updates from the tour during a breakout session at the IFB Commodities Conference. The annual conference will be held July 31 at the Marriott Hotel and Conference Center in Normal. “The rules and regulations in place in the European Union definitely will affect the way we do things (in the U.S.) in the future,” Temple told FarmWeek. The EU in recent years regulated the use of antibiotics, banned the use of gestation stalls on hog farms and is considering a ban on tail docking. Temple, who spent 3 1/2 months in England and Scotland 30 years ago through the FFA work experience abroad program, noticed some Brad Temple key changes in livestock production during the recent IFB tour. “A big difference was more restrictions. Farmers are not able to care for their livestock the way they were taught or educated,” said Temple, a long-time livestock judge. “I’m still not convinced (the changes) are in the best interest of the animals.” Temple noted that pigs and sheep in the EU look similar to breeds he saw there 30 years ago, but European farmers have shifted their focus to larger-framed dairy and beef cattle. For more information, attend the Future Animal Care Rules breakout session at the IFB Commodities Conference. Pre-registration for the conference is available online at {ilfb.org} through July 22 or by contacting the local Farm Bureau office.

sic novel, “A Christmas Story,” Scrooge was awakened in the night by three ghostly visitors — the ghosts of the past, present and future. Like the story, there is much to be learned about the biodiesel industry by looking at lessons of the Brigette Harlan past and present as well as looking forward to what we hope is yet to come. The biodiesel industry has learned some hard lessons from the “ghosts of industry past.” Biodiesel users were unaware of some of the product’s traits, such as its solvency capabilities and that storing it in cold temperatures could cause ”fall out” in the tank. There was also a large quantity of off-specification product entering the marketplace. The inconsistency of supportive legislation has also been a key lesson from the past. When the Federal Blender’s Credit expired at the end of 2009, production dropped more than 40 percent the following year. In “industry present,” quality is taken very seriously. Product specifications have been improved and are now moni-

have voluntarily chosen to participate in the BQ-9000 program. Plants that pass the program’s requirements earn the

To continue the momentum the biodiesel industry has already built, there must be strong legislative support. industry’s “good housekeeping” stamp of approval. Biodiesel users now know what to expect from the product based on storage and blending methods. Some have also implemented routine tank maintenance programs to check the condition of the tank bottom at least once a year. Strong legislative support has also helped the “industry present” to be successful. The Federal Blender’s Credit is active until the end of 2013. The credit had expired twice in recent history, once at the end of 2009 and again at the end of 2011, but it was reinstated both times and is currently active through the end of 2013. It has helped the economics of biodiesel become more competitive with conventional diesel fuel. Also, funding for infrastruc-

Feeder pig prices reported to USDA* Range Per Head $31.15-$48.00 NA

Weighted Ave. Pric5 $38.60 NA

This Week Last Week 80,979 71,623 *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 Change $95.32 $97.03 -$1.71 $70.54 $71.80 -$1.27

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

This week $121.13 $121.85

Prev. week $118.99 $119.00

Change $2.14 $2.85

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 $142.40 $140.61 $1.79

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 123-169 lbs. for 117.20-141.26 $/cwt. (wtd. ave. 122.18), wooled 186 lbs. for 114 $/cwt. 116.47.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 7/04//2013 2.5 25.6 8.2 6/27/2013 4.5 26.4 14.9 Last year 19.2 15.2 24.2 Season total 1289.1 108.6 589.8 Previous season total 1236.0 100.9 1346.1 USDA projected total 1330 1075 700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

yet to come? To continue the momentum the biodiesel industry has already built, there must be strong legislative support. Programs such as the Federal Blender’s Credit, the Bio-Education Program and the Bio-Energy Program must be more stable. The Renewable Fuels Standard (RFS2) must remain strong. If the biodiesel industry moves forward with the same passion and vitality that Scrooge had on Christmas morning, then it will be exciting to be part of the story yet to come. For additional information, contact your local FS energy specialist. Brigette Harlan is GROWMARK’s renewable fuels product manager. Her email address is bharlan@growmark.com.

USDA

M A R K E T FA C T S Weight 10-12 lbs. 40 lbs.

racks making biodiesel blends available to more consumers. Looking forward, what is

Compliance spot checks -– The Farm Service Agency (FSA) will conduct compliance spot checks on 2013 crops. Farmers will be selected nationwide instead of a local selection of farms, contracts, deficiency loans, etc. for review. Spot check selections are to be conducted based on a farmer’s participation in the Conservation Reserve Program, Direct and Countercyclical Program, Loan Deficiency Program, etc. Contact the local FSA office for additional clarification. Unauthorized disposition of grain — Feeding, selling or any other form of disposal of loan grain without prior written authorization from the county FSA staff is considered an unauthorized disposition. Financial penalties for unauthorized dispositions are severe and a farmer’s name will be placed on a loan violation list for two years. Farmers, remember to always call your local county FSA office before hauling any grain under loan. Highly erodible land and wetland compliance — Landowners and farmers are reminded they must comply with highly erodible land (HEL) and wetland conservation (WC) provisions to be eligible to receive USDA payments. Farmers with HEL soils have tillage, crop residue and rotation requirements specified in their conservation plans or approved systems. To ensure compliance, farmers should notify FSA before clearing land or doing drainage projects.

Farm Service Agency

Landowners and farmers can complete form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification to determine whether a referral to Natural Resources Conservation Service (NRCS) is necessary. For more information on HEL and WC provisions, contact the county FSA office. Microloan program — FSA developed a microloan program to better serve the unique financial operating needs of beginning, niche and small farm operations. The microloans are designed to help farmers who need $35,000 or less. A streamlined application process is used to fit the needs of new and smaller farmers. This loan program also is useful for specialty growers and operators of community supported agriculture ventures. Eligible applicants can apply up to $35,000 to pay for initial start-up expenses, such as hoop houses to extend the growing season, essential tools and irrigation, as well as such annual expenses as seed, fertilizer, utilities, land rent, marketing and distribution expenses. As financing needs increase, applicants can apply for a regular operating loan up to $300,000 or obtain financing from a commercial lender under FSA’s guaranteed loan program. For more information, contact the local FSA office to arrange an appointment with a farm loan manager or officer.

PROFITABILITY

Page 15 Monday, July 15, 2013 FarmWeek

CASH STRATEGIST

China creates market buzz

China rumors have become a mainstay in the wheat market over the last few weeks. Similar rumors flourished in the corn pit last week. Trade talk had them buying up to 1 million metric tons (mmt) of corn. On Friday, USDA reported 960,000 thousand metric tons had been sold to them for the new-crop year. That brings us to the new supply/demand report USDA issued July 11. USDA left corn and coarse grain imports unchanged 7 mmt and 9.45 mmt, respectively. But, they raised China’s wheat import forecast 5 mmt to 8.5, eclipsing expectations as well as the forecasts of other major analysts. That even exceeds the forecast from China’s government-tied think tank. But what was not noted by many in the trade was the 5 mmt increase in wheat feeding expectations in the USDA report. That goes hand-inhand with reports earlier this summer that up to 10 mmt of the wheat crop could have been damaged by weather. At week’s end, the Chinese government indicated this year’s winter wheat crop output reached 115.67 mmt, up 1.3 percent on

the year. Given that the government holds about a half crop in reserve, they are not in dire fear of running out of wheat. The damage inflicted on the crop with the early summer rains reduced quality, making more of it feed grade. Hence, imports need to be more robust to replace the wheat being pushed into the feed pipeline. That’s a significant portion of their feed needs, too — about 14 percent. Increased wheat feeding will cut into the amount of corn needed for feeding. The corn purchases made this past week are destined for government reserves, not to normal demand channels. The government could hold as much as 30 to 40 mmt in a reserve, a number they don’t divulge. They bought a little more than 30 mmt from their producers this last year, but not all of it came back into the demand pipeline. Their recent purchase was probably due to prices representing good value. World prices are still well under the guaranteed minimum price at which they will buy corn from producers this year. We would expect them to buy more this year if the price is right. How much their buyers purchase for normal consumption will be a function of the size of this year’s corn crop. So far, there’s no reason to think it won’t be slightly larger than last year.

AgriVisor endorses crop insurance by

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

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

309-557-2274

Corn Strategy

ü2012 crop: We noted quite a bit of significant basis weakening at week’s end. That’s a sign buyers are about done chasing this premium old-crop cash market. We strongly discourage you from owning any old-crop inventory. ü2013 crop: Generally good weather is a more important feature than last week’s USDA numbers. At the least, use these prices for making catch-up sales. vFundamentals: No matter what you believe about production potential this year, the changes in demand expectations for the new crop still highlight the struggle prices may have in the coming year. And as much as everyone fears the implications if weather turns hot, the intermediate range forecasts continue to point to generally good growing conditions. Crops in the west are further behind and not as good as those in the east. But even the Iowa and Minnesota crops are rated close to 60 percent good/excellent. It’s thought the crops are generally 7 to 10 days behind on development.

Cents per bu.

Soybean Strategy

ü2012 crop: Like corn, we are noting significant basis weakening, signaling the strength in old-crop prices is coming to an end. And once cash prices start to give up, the break should be quick. Price any bushels you still own. ü2013 crop: The biggest issue new-crop prices face is the lack of interest in covering needs at higher price levels. Last week’s export sales for soybeans and soybean meal were a little disappointing. Use prices above $12.50 on November soybeans for catch-up sales. vFundamentals: Like corn, it’s the absence of indications that demand is improving that was the important feature on the latest supply/demand forecasts. And given China’s economic erosion, there’s a chance current world demand estimates are generous. Prices may get some support from expectations that acreage and yield will be revised lower, but unless

weather deteriorates markedly, new-crop prices aren’t likely to sustain gains at the $13 level.

Wheat Strategy

ü2013 crop: Recent market action suggests a seasonal low may have been established. The Chicago September contract penetrated its $6.81 resistance, opening the door for a test of the $6.98 to $7 level. Plan to make catch-up sales when September trades near $7. vFundamentals: The wheat market gained upward momentum during the past week with demand for U.S. wheat picking up. China

stepped back into the market and made some sizable purchases. There continues to be speculation the Chinese could import 5 million metric tons (1 metric ton equals 36.7 bushels) more this marketing year, a 242 percent increase from last year. The recent USDA production report didn’t offer too many surprises. The all-wheat U.S. planting number was higher than anticipated, but both the U.S. and world stocks numbers were below expectations, mainly due to demand out of China.

PERSPECTIVES

FarmWeek Page 16 Monday, July 15, 2013

Summer busy and challenging for those involved in education

The Illinois Agriculture in the Classroom (IAITC) program works with Illinois teachers, sharing ways to integrate agriculture into their curriculum. At the state and county levels, our AITC coordinators work diligently to represent the various facets and nuances of Illinois agriculture to these teachers. KEVIN One of our primary DAUGHERTY forms of teacher training is our Summer Agricultural Institute. This year, our Summer Ag Institutes will reach more than 500 teachers across the state. Teachers are taking time this summer to learn more about agriculture. Due to unique scheduling, the majority of our teacher training this year occurred in June. The week of June 17 proved especially challenging. The Illinois General Assembly held a special session that had many teachers watching as the lawmakers were scheduled to address pension reform. Pension reform has the potential to impact every school district in Illinois. Teachers were certainly interested in what was — or as it turned out, wasn’t — happening in Springfield. As you are aware, the special session resulted in a committee to study the pension situation.

Since that time, teachers attending IAITC Summer Ag Institutes have been paying close attention to the farm bill debate and the actions in the Illinois General Assembly. As a member of my local board of education, I also have been paying close attention to the actions of the General Assembly. In my mind, the two are tied together. As a board member in a downstate rural district, I understand the importance of our farmland tax base. Anything that assists our farm owners in continued success is crucial to districts. Since 2009, state funding of local schools has declined by more than $860 million. That has translated into increased local support of school funding. Illinois farmers and landowners have continued to support schools through property taxes paid in full and on time. Units of local government could not ask for more than the continued and timely support of our local landowners. Now, more than ever, the support of local land owners is crucial. During our Summer Ag Institutes, we’ve worked to encourage conversations between farmers and teachers. Now, more than ever before, teachers — and the schools they represent — are tied to local farmers. Just as the great efforts of farmers and farm organizations work to tell the story of agriculture through the Illinois Farm

Above: McHenry County Farm Bureau and Illinois Specialty Growers Association leaders Dennis Alten, front left, and his brother, Harry, explain growing specialty crops to educators participating in the county Farm Bureau’s recent Summer Ag Institute. Below: McHenry County Farm Bureau leader and former president Bruce Meier, center in tan shirt, discusses hog farming with educators. Amanda Meier assists with the hogs. (Photos courtesy McHenry County Farm Bureau)

Family movement, IAITC is encouraging teachers to reach out and tell their story of the changes and challenges of education to the local stakeholders. As we’ve seen in agriculture, if the key stakeholders don’t tell the story, someone else will! Although many of you are engaged in your local schools as volunteers and board members, I encourage you to reach out to local teachers, administrators and boards of education to gain a deeper understanding of what is going on with pension reform and school funding, and how it impacts you and your farm. While you are at it, make sure you share what is happening on your farm with those in education.

Kevin Daugherty is the Illinois Farm Bureau education director and coordinates the Illinois Agriculture in the Classroom Program. Recently, he was re-elected to his third term on the LeRoy (McLean County) CUSD #2 Board of Education and serves as president.

Markets and others watching for the Fed to start tapering

the housing market. While it has been providing a tailwind to some of the employment numbers and has helped lift the overall pace of economic growth, some of this strength can be attributed directly to the benefits of low rates. As the Fed decides what course of action to pursue over the coming months, there is little doubt that it is carefully monitoring the U.S. stock market to determine what impact its moves will have on the investment community.

Financial media tend to grab onto a word or phrase and then flood the airways. Today, that word is “tapering.” News channels, newspapers, and financial publications can’t seem to get enough of that word. What I’m referring to is the biggest question in the marDEREK kets today — VOGLER when will the Federal Reserve begin to taper (or reduce) its Quantitative Easing program? As we all know, buying

bonds from one arm of the government — although the Fed is supposedly independent — that are issued by another part of the government cannot last forever. But removing this massive stimulus of $85 billion per month too soon could spook the markets and have significantly ill effects. Therefore, timing and positioning of this wind down is key. When this program was announced, the Fed discussed continuing these purchases until the unemployment rate was down to 6.5 percent, with corresponding low inflation around 2 percent. However,

back in February, Ben Bernanke specifically stated there was no target for an end to the program, but the Fed would weigh the economic growth created vs. the continuing costs of pouring money into the market. The commentary suggests the Fed does not want to be backed into a corner and wants continued flexibility regardless of what short-term economic indicators are signaling. It also is keenly aware that with a large and growing stake of the U.S. bond market, anything that is said could have a dramatic impact not only on rates, but

also on the movement of stock and bond markets. While monthly jobs reports are often market-moving, as they signal the current direction of the economy, all eyes were on the May report. The thought was a very high number (north of 250,000) would mean a quicker end to the Fed’s stimulus, while a weak number (less than 100,000) would mean the current pace of stimulus would likely be sustained. Amazingly, the reported number was exactly in the middle (175,000). Another factor that the Fed has to be closely monitoring is

Derek Vogler is vice president of investment at Country Financial.

Farming challenges related to changes

Farm Bureau has always been fairly conservative, and I can remember when they didn’t even support the government set-aside farm programs. Time has certainly changed that, however. I realize that Farm Bureau works to protect and advance the business and economic interests of farmers by supporting educational programs, promoting favorable legislation and sponsoring helpful services. They promote farm safety, citizenship, leadership training, education, and social and community betterment. The inability of our legisla-

ture to put together a reasonable and sensible farm program is the result of political ineptness. As far as farming is concerned, why should farmers need such a complicated farm program? Last year was a short crop, yet the majority of farmers had a better year than 2011 because of higher prices and crop insurance. Last year was too dry, and 2013 has been too wet so far. With new farming practices, planting precision technology, hybrid plant genetics and chemicals, we just think we

need to plant more acres to produce more crops and profits — without God’s help. The headlines on the June 24 issue of FarmWeek were “House farm bill failure raises concerns about future.”

I think we should be more concerned about our nation falling away from God than about what our government should do for us. JOHN GRAMM Gridley

Editor, Old farmers never die, they just look back at the good old days. A friend of mine once said, “Farming used to be a way of life until someone found out there was a profit in it!” I was recently looking through a 1965 World Book Encyclopedia about farming. In 1965, the American Farm Bureau Federation was the largest general farm organization in the United States. It included 1.6 million farm and ranch families.

LETTER TO THE EDITOR

Letter policy

Letters are limited to 300 words and must include a name and address. FarmWeek reserves the right to reject any letter and will not publish political endorsements. All letters are subject to editing, and only an original with a written signature and complete address will be accepted.

A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701