ELEVEN FARMERS will return to the U.S. this week after participating in the Illinois Farm Bureau European Union Animal Care Issues Tour. ......................8-9
A BUSINESS LINKING biomass fields and bioenergy plants sprouted last week near Goodfield in Woodford County. ....................4
AG GROUPS team with Occupational Safety and Health Administration to develop a new “stop sign” grain bin entry decal. .........10
A service of
®
Bustos offers Senate farm bill to resurrect debate Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.
Monday, July 1, 2013
BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
As House leaders mulled available options for resurrecting the farm bill, House Ag Committee member Cheri Bustos last week took a run at keeping the debate alive. In the wake of a recent House failure to act on a long-delayed ag policy/food package, the East Moline Democrat Rep. Cheri Bustos joined with Iowa Democrat Reps. Dave Loebsack and Bruce Braley to introduce House language identical to the Senate’s new farm bill measure approved June 10. The current 2008 farm bill extension expires Sept. 30, and rural Illinoisans are “thirsting for the certainty and predictability of a bipartisan, fiveyear farm bill,” Bustos said. She argued “our economy needs a farm bill,” but charged “partisanship sadly stood in the way.” “I’m calling on House leadership to swiftly schedule a vote on this bipartisan Senate-passed farm bill,” the freshman lawmaker stated. “It may not be perfect, but Senate Democrats and Republicans were able to come
Two sections Volume 41, No. 26
together to get a bill passed, and the House should do the same.” American Farm Bureau Federation policy specialist Mary Kay Thatcher told FarmWeek Republican caucus members emerged from Wednesday discussions with “no decision about how to move forward.” Given June’s heated debate over more than 100 amendments and the strong partisan divide over the final plan, the prospect of House leaders even considering the Senate version is “not likely at all,” Thatcher said. The key difference between Senate and current House measures was the level of proposed food stamp reforms and long-term cuts — $4 billion over 10 years in the Senate bill vs. a $20 billion/10-year target in Republican House debate. While Senate and House proponents maintain respective savings would be used to reduce program fraud and misuse and would not affect needy food stamp recipients, the issue proved a partisan House deal breaker. Thatcher reported major “Tea Party Republican”
opposition to the House plan. Procedurally, the farm bill could easily be brought back to the House floor, she said. Ultimately, she sees lawmakers agreeing to food stamp cuts somewhere between the $4 billion and $20 billion “bookends,
but where that is, who knows?” The “final straw” in House debate appeared to be attempted inclusion of drug testing, work, and other food stamp requirements “right before final passage,” she suggested. Now that the debate has cooled, Thatcher sees
RAKING IN THE HAY
hope for farm bill advocates “finding eight or 10 or 12 more votes.” “You have two options right now,” she nonetheless said. “You can move more to the right, have more food stamp See Bustos, page 2
Austin Tarter rakes hay on 10 acres near Canton in Fulton County. The hay yielded 2.5 tons per acre — an average yield for the field. The Tarter family, feeding 15 Angus cattle, has owned Tarter Feed and Fertilizer for more than 50 years. (Photo by Cyndi Cook)
Kirk’s support pivotal in labor reform debate?
U.S. Sen. Mark Kirk, a staunch border security advocate, may play a pivotal role in bringing about long-awaited ag immigration reforms, according to Illinois Business Immigration Coalition (IBIC) co-chairman Dave Bender. Last Thursday, the Senate approved comprehensive immigration legislation, including Farm Bureau-supported ag worker provisions. The bill offers a five-year ag work “Blue Card” option for currently undocumented workers as well as new visa opportunities for temporary ag workers. Illinois Farm Bureau President Philip Nelson applauded the Senate’s 68-32 vote as the culmination of “months of hard work and continued conversations with our legislators.” The bill “not only reforms a flawed system, but helps address agricultural workforce shortages, provides an incentive to keep guest workers in agricultural jobs, and creates a more stable workforce for farmers,” Nelson said. He maintained the Senate
“has sent a strong message to members of the House of Representatives to pass similar legislation.” Sen. Dick Durbin, a Springfield Democrat, was part of a bipartisan “Gang of Eight” that helped craft the Senate bill. In Bender’s Sen. Mark Kirk view, a key turning point in Senate debate was Kirk’s decision days earlier to support the measure despite initial concerns based on added border security measures sponsored by Sens. Bob Corker (R-Tenn.). Bender, whose IBIC includes statewide businesses and other interests that favor comprehensive reform, sees prospects as “very good now that Mark Kirk’s on board.” As Illinois’ Republican “senior statesman,” Kirk’s support should reassure downstate House Republicans, he told FarmWeek. Bender has stumped for comprehensive reform since 1999, when he was executive
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director of the then-Illinois Nurserymen’s Association. Over the last nearly 14 years, he found Kirk, a Naval Intelligence veteran and current Naval Reserve commander, resistant to proposed ag labor reforms. “Although he sympathized with our need, he said the need for the strength of our border security overcame all other needs,” said Bender, executive director of the American Council of Engineering Companies of Illinois and Logan County Republican chairman. “The next step is sitting down with the members of the Illinois delegation, particularly with the Republicans and letting them know this is important to business, to agriculture, to all of us. Now that Mark Kirk’s sent a signal, that gives us a lot of momentum.” Bender cited a recent Wall Street Journal article indicating border security has been “better than ever over the last five years.” Homeland Security Secretary Janet Napolitano endorsed Senate security proposals, See Reform, page 7
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Quick Takes
FarmWeek Page 2 Monday, July 1, 2013
COMMODITIES
USDA corn acreage number deemed ‘spectacular’ surprise
Scoville noted the report reflected corn acreage increases in marginal areas, such as the Illinois farmers could see a choppy summer Southeast, Nebraska, New York, Pennsylvania when it comes to pricing corn and soybeans. and the Dakotas. While USDA’s grain stocks report released Friday Dale Durchholz, AgriVisor senior market anafell in line with trade estimates, the corn acreage lyst, showed less surprise at the acreage numbers. number proved “spectacular.” “You have to understand USDA survey Corn acreage was estimated at 97.4 million methodology. The March (planting intentions suracres. That’s the highest planted acreage in the vey) samples are much smaller, so they are less staU.S. since 1936 when an estimated tistically accurate,” Durchholz noted. 102 million acres were planted. The market analyst expects FarmWeekNow.com Farmers expect to harvest 89.1 only a slight shift downward in Listen to the latest AgFanatics million acres, up 2 percent from planted acreage by the August podcast for reaction to Frilast year, according to USDA. report. Durchholz said he expects d a y ’s U S D A r e p o r t s a t Soybean acreage estimates corn acreage to drop by 500,000 FarmWeekNow.com. came in at a record 77.7 million acres and soybean acreage to acres. Harvested acreage estimates decline by 1 million acres. also stand at a record 76.9 million acres. “We’ll see some short-term lows, then we’ll see “I don’t know anyone who won’t be question- what the weather does. We will need a late fall to take ing the corn acreage number at the end of the these crops home,” said Scoville, during a teleconferday,” said Jack Scoville, market analyst with The ence hosted by the Minneapolis Grain Exchange. Price Futures Group. “This almost seems more The grain stocks report will temper significant like a planting intentions report. USDA may need drops in market prices, Scoville added. Stocks to re-survey in mid-July for the Aug. 12 report.” numbers aligned closely with USDA estimates. Shortly after the report was released, USDA’s Corn stocks as of June 1 totaled 2.76 billion National Agricultural Statistics Service bushels, down 12 percent from 2012. Similarly, announced it would re-survey soybean acreage in soybean stocks came in at 435 million bushels, 14 states, including Illinois. USDA did not indidown 35 percent from last year. Wheat stocks cate it would re-survey corn acreage. dropped only 3 percent from the previous year at Illinois’ planted corn acreage was estimated at 718 million bushels. 12.2 million acres compared to 12.8 million plant“Grain supplies are tight. That will help suped last year. Soybean estimates came in at 9.4 mil- port the market despite production and weather lion acres, up from 9 million acres last year. questions,” Scoville concluded.
BY CHRIS ANDERSON FarmWeek
FARMWEEK EDITOR TURNS A PAGE — After nearly 34 years as FarmWeek editor, Dave McClelland has capped his red editing pen. This issue marks the last of his handiwork. McClelland began his career with Illinois Farm Bureau in 1979 as agricultural affairs editor. He previously served as farm editor at The Pantagraph, a Bloomington-based daily newspaper. In 1987, McClelland became FarmWeek managing editor. He was named editor in 1994. FarmWeek moved from a black-and-white newspaper to full color under McClelland’s direction in 1987. Similarly, he oversaw the transition of Partners, a publication IFB provides to nonfarmer members, from a newspaper to a quarterly magazine in 2008. FarmWeek garnered several top honors from the American Farm Bureau Federation under McClelland’s supervision. Chris Anderson will succeed McClelland. She also worked at The Pantagraph, and served as farm editor at the newspaper before joining COUNTRY Financial as a media relations coordinator in 2006.
REPORT PLANTED ACRES — Illinois farmers have until July 15 to report planted acres to their county Farm Service Agency office. Crop acres to be reported include spring cabbage, corn, grain sorghum, green peas, hybrid seed corn, spring oats, popcorn, processing beans, pumpkins, soybeans and sweet corn. Filing an accurate acreage report for all crops and land uses can prevent farmers from losing benefits for a variety of programs.
GROUPING GROUP PRODUCTS — USDA has announced a streamlined approach to buying area risk protection, publishing its final rule for Area Risk Protection Insurance (ARPI) effective with the 2014 crop year. ARPI combines the existing Group Risk Plan (GRP), which covers against loss of yield due to a county level production loss, and the Group Risk Income Protection Plan (GRIP), which covers against loss of revenue due to a county level production loss, price decline, or combination of both, into one insurance policy. Farmers will be able to choose from one of three area plans: Area Revenue Protection, Area Revenue Protection with the Harvest Price Exclusion, or Area Yield Protection, under an umbrella policy with specific provisions for each crop.
(ISSN0197-6680) Vol. 41 No. 26
July 1, 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.
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Dairy sector pushes farm bill need BY MARTIN ROSS FarmWeek
It may be months before farmers and consumers again come to the edge of the so-called “dairy cliff,” but dairy interests warn House failure to move a farm bill soon will bring their sector closer to the brink. The National Milk Producers Federation (NMPF) “has been working for four years to try to come up with a better safety net for dairy farmers,” federation spokesman Chris Galen told FarmWeek. NMPF’s answer is a new “margin protection” program aimed at cushioning volatility in feed and milk prices and a new dairy supply management system. The plan has garnered widespread producer support and was included in 2012 and 2013 Senate measures and House Ag Committee proposals. However, dairy interests diverged after Rep. Robert Goodlatte (R-Va.) amended the plan “against our wishes,” moving to dump supply provisions, and then “the full farm bill collapsed,” Galen said. “We’re scratching our heads along with not just farm groups but also hunger and nutrition groups and, frankly, the leadership of the House and Senate, trying to figure out what happens next,” he said. “For dairy farmers, the bottom line is the status quo is not acceptable. We need to continue putting pressure on Congress to come up with a better safety net for farmers.” South-Central Illinois dairyman Dave Lidy said he believes margin protection would be “a good program, if it’s set up right and if the producers totally understand how it works.” Last year, Southern Illinois dairy producers suffered the “double effect” of high corn and soybean prices and poor homegrown forages, Lidy said. “There’s literally no margin for error when it comes to making a dairy farm able to cash flow,” he maintained. With dairy prices likely to remain above the existing Milk Income Loss Contract (MILC) pay-
ment trigger into September, MILC’s expiration with the end of the 2008 farm bill extension on Sept. 30 shouldn’t be “all that noticeable,” Galen said. Of greater concern is the “dairy cliff ” — the potential impact of dairy price support program expiration at the end of 2013. If no new farm bill is in place by Dec. 31, the program ostensibly would shift to “permanent law” — default 1949 ag legislation. In that event, federally supported farm prices could double, boosting consumer dairy costs, Galen said. Last week, Senate Majority Leader Harry Reid (D-Nevada) said the Senate would not extend the farm bill again this fall. Dairy price fears helped spur an 11th-hour farm bill extension in January, but Galen said he is uncertain how the issue would play in the near term. “There’s no sense of urgency now,” he stressed. “But if it becomes more difficult to figure out what the next step is, that will add more urgency.”
Bustos
Continued from page 1 cuts, more reform, pick up Republicans, and probably lose Democrats. You can move more to the left, restore some food stamp funds, pick up mor‘D’s, potentially lose more ‘R’s. “They have to pass a bill they can take to (House-Senate) conference committee and that can pass the House and Senate when it comes back from conference. That’s what they’re struggling with. I think they’re looking at options for finding one or two amendments that could be added and make people happy enough to move forward.” That said, the clock is ticking on existing farm bill programs. Thatcher noted the Milk Income Loss Contract dairy program “will start falling apart Oct. 1” (see above). But the major impacts of a farm bill lapse won’t occur until after Jan. 1, and “there’s nothing that says we’re going to finish this thing the week after next,” she advised.
MARKETS
Page 3 Monday, July 1, 2013 FarmWeek
Container quality confirmed; Illinois prospects promising BY MARTIN ROSS FarmWeek
Quality’s a key assurance for container customers, and Illinois stands to strengthen its position as a container capital, according to Informa Economics Senior Vice President Ken Eriksen. An Informa-Illinois Soybean Association (ISA) study concludes soybean quality does not deteriorate between Midwest container loadings and arrival at foreign ports often four to 10 weeks later. That allows shippers to obtain higher prices, “which will trickle down to the farmer,� Eriksen said. “What goes into a container is essentially what comes out of a container,� he told FarmWeek. More customers are electing to import beans via containers to take advantage of protein, oil, grade, or other added value considerations. Today, container shipments comprise about 8 percent of Illinois soybean exports.
U.S. shippers are loading 200,000-plus containers with 100 million to 200 million bushels of corn and soybeans per year. That doesn’t count soy or corn gluten meal or distillers dried grains, said Eriksen, who believes Illinois’ market and logistical advantages lock down its future as the “load center� for containerized commodities. He cites a huge Chicagoland consumer base, a convergence of Class I railroads, and existing regional capacity to move inbound containers of manufactured goods into retail “big box� operations and position them for reloading. “Right now, about two-thirds of the containers loaded with grain are loaded in Illinois,� he related. “They’re put predominantly on rail cars and moved across country either to Los Angeles/Long Beach or Seattle/Tacoma Pacific Northwest (ports), where they’re put onto a ship and moved overseas. “Illinois is very well situated to take advantage of these
Container-on-barge downstream opportunity?
Capital, collaboration, and the industry’s willingness to take a new route in container exportation will determine the downstream success of “container-on-barge� (COB) efforts. So says Illinois Soybean Association consultant Chuck Dillerud, who since 2010 has investigated the possibility of shuttling containerized ag goods down the Illinois and Mississippi Rivers to the Gulf. Dillerud cites reduced-cost options for loading containers at terminals such as Joliet, Peoria, or Granite City for shipment to the Port of Houston, potentially “without touching any public roads.� He noted a U.S. Department of Transportation push to shift more containers from trucks to the rivers, in part to relieve highway congestion. Barge movement would offer improved elevator prices for farmers, he argued. Energy efficiency and environmental sustainability also are considerations. A ton of cargo that takes 115 miles per gallon of fuel to ship by truck can travel 413 miles by rail or 576 miles by barge on the same gallon, Dillerud said. And existing truck weight limits suggest the advantages of shipping containers on “a barge that really doesn’t care what it weighs,� according to Dillerud. With collaborative work among commodity and transportation interests, Informa Economics transportation analyst Ken Eriksen sees the potential feasibility of COB. “We’ve seen some economics that suggest it could work,� Eriksen told FarmWeek. “The Panama Canal is adding another set of locks. You could go from a 4,500 20-foot-equivalent-unit (TEU) container ship today to a 12,500-TEU vessel in two years’ time. “It’s all about the buyers. There are some buyers who are looking at different freight alternatives to secure their pipeline, to have the contingencies they need to feed their livestock.� The next step in realizing an Illinois-based COB program is development of a pilot program and securing some $500,000 in startup operating capital, Dillerud said. COB programs are operating successfully in France and in the Pacific Northwest along the Columbia River. But Dillerud acknowledges the challenge of convincing barge or oceanic shippers to try something new. He stressed a Gulf COB program “cannot work unless we have backhauls� — recycled containers coming back up river on a reliable schedule to generate added revenues. The answer may be northbound shipments of “non-timesensitive� bulk commodities such as dry fertilizer or road salt, Dillerud said. — Martin Ross
Andy Waldron, The DeLong Co. Inc.’s Joliet facility manager, oversees loading of an outbound container with distillers dried grains. The Wisconsin-based family company operates 15 locations in Illinois, Ohio, and Wisconsin, encompassing agronomy, grain, seed, wholesale distribution, and transportation services. (Photo by Ken Kashian)
types of opportunities.� The shipping industry’s gearing up to capitalize on those opportunities. Denmark shipping giant Maersk is phasing in its Triple E series of mammoth 18,000-TEU (standard 20-footequivalent container) vessels. According to Eriksen, 11 of those “behemoths� could move today’s annual grain loadings into Asia, Europe, and the Mid-
dle East via Pacific ports and the Gulf and Panama Canal (see accompanying story). ISA is exploring the feasibility of “container-on-barge� shipping to capitalize on Gulf potential. Archer Daniels Midland Co. (ADM) is developing an “inland port� facility that would coordinate ADM shipments with the three rail carriers that serve Decatur.
To make such ventures a success, ADM Transportation President Scott Fredericksen urges policymakers to help reduce what he deemed artificial “paper barriers� to rail competition and fund multimodal infrastructure improvements. “The public sector must lead when it comes to infrastructure investment,� Fredericksen said.
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BIOENERGY
FarmWeek Page 4 Monday, July 1, 2013
Biomass conversion breaks new ground in Central Illinois BY KAY SHIPMAN FarmWeek
An employee of Chip Energy Inc. stacks wooden pallets at the biomass conversion plant near Goodfield last week. The plant is built from recycled cargo containers and can be replicated in rural areas to convert biomass into products for different sectors, including biofuel plants, according to Paul Wever, Chip Energy president. (Photos by Kay Shipman)
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A business linking biomass fields and bioenergy plants sprouted last week near Goodfield in Woodford County. State, county, and local officials celebrated the official groundbreaking of a conversion plant owned by Chip Energy Inc. Paul Wever, Chip Energy president, envisioned his processing plant being replicated around the state and located near users of biomass fuel. “We’re planning to be the in-between,” Wever told FarmWeek. Wever estimated his Goodfield plant would start operation next year. The one-of-a-kind processing facility is the first to be built entirely from 60 recycled shipping containers, according to Weaver. When operational, Chip Energy will be able to process 100 tons of materials daily, but future plants could be scaled up to handle 500 tons daily, Wever said. His current plans are to process wooden pallets and other wooden waste materials that otherwise would be put into landfills. “The idea is to keep the cost per pound as low as it can possibly be,” Wever said. The ground wood may be used for mulch or compressed into briquettes, pellets, or logs for fuel. Paul Wever, president of Chip Energy Converting biomass into Inc., compares a ground-pressed disc forms for cellulosic ethanol of miscanthus with some dried mis- production is another possicanthus. Wever’s biomass conversion bility. “This is about building plant can grind and compress many infrastructure ... to supply types of biomass for use as fuel. industry with feedstock,” Weaver said. One of Weaver’s goals is to replicate his module conversion plants around the state. He reasoned the plant with its vertical structure is designed to make a small environmental impact in rural communities. A processor also would provide jobs in small towns, he noted. “This benefits everyone,” said Woodford County Board Chairman Stanley Glazier. “It’s so innovative. It’s bringing jobs, income, and notoriety to Woodford County.”
Sustainable farm business field day topic
University of Illinois Extension, along with the Central Illinois Sustainable Farming Network and the Spence Farm Foundation, will host a July 13 field day in Livingston County on two farms. Advance registration is encouraged by July 12. The event will start at 2:30 p.m. at the Living Waters Farm in Strawn, and then move to the South Pork Ranch, Chatsworth. The program will end at 7 p.m. To register, go to {webs.extension.uiuc.edu/registration/ ?RegistrationID=7946} or contact Deborah Cavanaugh-Grant at cvnghgrn@illinois.edu or 217-782-4617. Living Waters Farm is located at 29695 E. 100 North Road, Strawn, and South Pork Ranch is located at 32796 E. 750 North Road, Chatsworth.
Attorney general sues oil firm Alleges pollution in Fayette County
Illinois Attorney General Lisa Madigan last week announced she was filing water pollution charges against Indiana-based Petco Petroleum Corp. before the Illinois Pollution Control Board (IPCB). Madigan’s complaint alleged Petco Petroleum repeatedly failed over the last four years to maintain and upgrade wells and
drilling equipment to prevent spills. The complaint documented recurring oil spills and salt water releases at the company’s wells near St. Elmo in Fayette County. Petco pumps large volumes of salt water into wells to extract crude oil. The attorney general is seeking civil penalties and establishment of a maintenance plan. Petco is authorized to operate about 1,200 oil wells and 400 injection wells.
EMERGING ISSUES
Page 5 Monday, July 1, 2013 FarmWeek
Women’s conservation topics flow with information, issues BY KAY SHIPMAN FarmWeek
Questions, observations, and information ebbed and flowed as 20 women, both landowners and agricultural professionals, chatted last week in Mattoon. Participants at the Women Caring for the Land meeting came from several East-Central Illinois counties. “I don’t feel like I know about (farm) programs. I’m here to learn information about conservation programs,” said one participant. “We don’t know what questions to ask,” said another. Several women nodded in agreement. Agricultural demographics are changing as more women are involved either as farm owner/operators or as landowners who rent to tenants, Ann Sorensen, research director at American Farmland Trust (AFT), told the women. “There is more and more demand by women for (agriculture) information,” Sorensen said. Women representing the Natural Resources Conservation Service (NRCS), Soil and Water Conservation Districts (SWCD), Coles County Farm Bureau, AFT, Prairie Rivers Network, and Illinois Stewardship Alliance provided insight. The meeting’s woman-centric format, known as a learning circle, has been used successfully for years by Iowa’s Women Food and Agriculture Network and was adapted for Illinois. During last week’s meeting, questions surfaced and were answered by the experts seated around the room, but there were no formal presentations — just conversation. A couple of the women described flooded areas in their fields and eroded areas in waterways. One woman joked about all the acronyms used for conservation programs. “I feel like there is some secret society that I don’t belong to,” added another. Several participants appeared surprised to learn they could contact their local NRCS/SWCD office and have staff look over their farmland and suggest potential conservation practices or structures. At one point, the conversation turned to organic farming vs. conventional farming. “It’s a tough decision for farmers and tenant farmers, especially when we’re getting the (grain) prices we are getting,” Sorensen responded. Each participant received information about conservation programs and practices with photo illustrations. The information included names and contact information for conservation and agriculture experts in state and county offices. A tour of local conservation practices was adjusted because of a thunderstorm, but participants
were able to view wetlands, prairie field borders, grassed waterways, and other practices — some owned by one of the participants. “I think it’s been good to raise awareness (of conservation programs). That’s why I came,” said Joyce Jurgens, whose family owns farmland in Moultrie and Douglas counties. “It was informative to see the conservation practices available. Some I didn’t know about. Some I’m thinking about trying,” said Jeanne Ahasay, a member of the Coles County Farm Bureau Board of Directors. Ahasay added she would like to hear more in-depth information along with an overview of conservation programs.
Participants of an all-female conservation program listen to Laura Smithenry, far right, district conservationist with the Natural Resources Conservation Service in Coles County, and Marissa Grant, in hat, land stewardship director with the Douglas-Hart Nature Center, Mattoon. The group learned about the center’s wetland and saw farm conservation practices last week in Coles County. (Photo by Kay Shipman)
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FarmWeek Page 6 Monday, July 1, 2013
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: What a change from a week ago when we were hoping for a little rain. We have had 6 inches, and there is lots of water standing in the low ground. There will be much flooding along the creeks and rivers, but crops on the higher ground are still looking very good. Some of that 6 inches of rain came very fast and hard. There will be washouts in some fields that won’t be seen until harvest. Post-spraying of beans is a high priority right now. The wheat is turning color pretty fast, but it will still be two to three weeks before we start harvesting. Leroy Getz, Savanna, Carroll County: Hot and wet sums up the week. We have had rain just about every day, with a total of 3.8 inches and temperatures in the 90s. There was wind and storm damage to our south in Whiteside County. Corn has made that big growth spurt. I have some plants that are now 6.5 feet tall. Soybeans are covering the ground and have a dark green color. Hay-making has been a soggy mess. Growing degree units now total 1,052. Larry Hummel, Dixon, Lee County: It has rained 4.5 inches in the last four days. Early Monday morning (June 24) one of our four-wheel-drive tractors was struck by lightning. Before I could get there with a couple of fire extinguishers, the flames were reaching higher than the cab of the tractor. It doesn’t look good, so we are waiting to see what the insurance company wants to do. Later that afternoon, some straight-line winds came through five miles south of us and destroyed the grain elevator in Walton, along with some farm buildings. Fortunately, there were no injuries. Corn and beans look great. With all of the rains and the rapid growth of the corn, it looks to me like the last of spraying will be done with drop nozzles. Joe Zumwalt, Warsaw, Hancock County: These last few days of warm, dry weather are just what this crop needed. Showers and storms have passed through the area over the last few weeks leaving scattered rainfall, but some heavy amounts not too far away. Corn ranges in size from V4 to V10 and some soybeans are beginning to be post sprayed. A few wheat fields have been cut with low to average yields. Lots of sprayers, hay work, and shredding going on in the area. Have a wonderful Fourth of July. Ken Reinhardt, Seaton, Mercer County: We had more than 2 inches of rain in a couple of shots. It was really needed, as the ground was getting hard and the June-planted crops were suffering. We had more rain last year in June than this year. Earlier-planted corn is growing fast and looking pretty good. The holes and thin spots are less evident. The annual plague of Japanese beetles has begun. Jacob Streitmatter, Princeville, Peoria County: More flooding across the area. Early Monday morning (June 24) there was anything from a beautiful 1.5-inch rain to a complete flood with the rain gauge reading more than 5.5 inches in just three hours. So much damage and ponds in corn and soybean fields. There also were rain events all week, but the total of each rain was below 1 inch so that doesn’t seem to matter when you just had 5.5 inches. Tim Green, Wyoming, Stark County: I woke up Monday morning (June 24) to a storm that brought anywhere from 3 to 5.5 inches of rain. All of our wet spots and spots that we replanted are flooded again, so it was kind of a wasted effort. The crop does seem to be taking the water better and starting to perk up and grow. We had some heat this week — summer is finally here. The corn looks better, but we have a long way to go with a lot of small beans.
Ron Moore, Roseville, Warren County: We received 2 inches of rain in the last week. Corn and soybeans look pretty good considering they are at least one month behind normal. The early-planted corn is now close to fence post tall. Last year there were several fields fully tasseled at this time. The soybeans are growing well, also. Post-spraying of soybeans will last for another two to three weeks. Pastures are in excellent condition. There will be lots of grass during the summer lull in growth. Many people are reporting record hay crop yields this year. Let’s hope that carries over to corn and soybeans this fall. Mark Kerber, Chatsworth, Livingston County: It looks like most of the state and half of our county has received beneficial rain. Eastern Livingston County, however, remains dry. There have been rains all around us, but they seem to dissipate or go around at Chatsworth. The biggest rain we received with five chances was 0.5 of an inch. Crops are really using water at this stage of growth. The corn has been sprayed and the soybean spraying is getting a good start. Nitrogen has been applied and the first cutting of hay is complete with wheat harvest soon to follow. Crop scouting is important as summer progresses to see what is going on with this growing crop. Insect and disease pressure hopefully will be at a minimum. Agronomists tell us it is important to also know what is going on underground with the roots. Friday’s report was in our favor. Ron Haase, Gilman, Iroquois County: Many storm fronts passed through last week. In total, our farms received from 0.7 of an inch to 1 inch over four days. We were in and out of the field spraying herbicide in our cornfields between the showers. We missed out on the heavy rain and flash flooding. Most corn in the area ranges from the V4 to the V11 growth stage. Soybean fields range from V1 up to the R1 growth stage or the beginning of bloom. The local closing bids for June 27 were: nearby corn, $7; new-crop corn, $5.22; nearby soybeans, $15.48; new-crop soybeans, $12.30. Brian Schaumburg, Chenoa, McLean County: June exits after a roller coaster ride of weather, rainfall, crop conditions, and markets to wind up at just about average. We are slightly ahead of normal on growing degree units, crop conditions and prospects are improved, and the markets are about where they were. Hard to believe USDA says we will grow a big crop with so many holes in the fields. A lot of beans need to be sprayed as yet. Corn, $7.04, new, $5.21; soybeans, $15.79, new, $12.46; wheat, $6.36. Steve
Ayers,
Champaign, Champaign County: Raindrops keep falling on my head, and they are BIG drops! A tip of the hat to Premier Co-op and Topflight Grain for their informative and timely rain maps. Monsoonal rains fell on Saturday (June 23) and again Tuesday evening. Saturday we had 50 mph winds and Tuesday we had rapid-fire lightning. Overall, corn and beans are leaping out of the ground, greening up well, and sprayers are rolling to keep ahead of weed pressure. Enjoy the Fourth of July with a cool temperature range of 60 to 80 degrees.
Wilfred Dittmer, Quincy, Adams County: It seems as though the year just began, and we are passing the halfway point already. We are wondering if beans are all going to emerge and how many weeds escaped the first or possibly second chemical application. Most cornfields look pretty good from the windshield around here, and wheat appears to be coming on fast. A lot of hay also is being tied up in the area. We also still have those pesky buffalo gnats. Have a safe Fourth of July.
Tom Ritter, Blue Mound, Macon County: Rains Tuesday evening into Wednesday put an end to all field activity for the week. Reports varied from 1 to 3 inches. Most of it came very rapidly, but it did not do a lot of damage. Most of the crop is advancing, at least in height. There will be some ponding, and some areas will be taken out of production because it is getting late for replanting. Overall, crop prospects are fair to good. Stands seem adequate. About the only activity really going on at the moment is the need to be spraying some of the corn and beans. Corn height varies from shoulder high to a foot high, depending on planting date. Most of the soybeans are either just emerged or 2 or 3 inches tall up to 1 foot. It will definitely be a very late harvest, and we will have to see what happens with timing and whether the rain shuts off. We definitely will be pollinating into what usually is greater heat late in July and August. Todd Easton, Charleston, Coles County: It once again was very wet across Coles County. Downpours struck over the last weekend and into midweek. We got nearly 2 inches on Saturday (June 22) and then 2 more inches on Wednesday. The crops that are above water seemed to like the drink. Most cornfields have advanced to above knee-high and soybean fields are beginning to canopy in the more narrow rows. The weeds in the bean fields that I mentioned last week are still doing quite well since sprayers have hardly been able to move. We also are waiting for wheat to become harvestable. Jimmy Ayers, New City, Sangamon County: We received 0.3 to 0.4 of an inch of rain on Wednesday. The corn is between V4 and V7 and some of it is getting up to shoulder-high or more. The later-replanted corn is very even and coming on pretty strong. We have some V4 beans. A lot of beans are just coming through, and some look very good. Quite a bit of hay and some roadsides have been mowed. It appears that most of the planting is done. Doug Uphoff, Shelbyville, Shelby County: Bins are mostly empty here, and major processors are scrambling to fill corn and bean needs by increasing basis. At the beginning of the week postspraying of corn and sidedressing 28 percent was still taking place where it wasn’t wet. Corn is beginning to grow fast and develop the dark green color we all like. Soybeans are up, but really small for this time of year. Wheat is closer to being ready. I have heard of some wheat being cut but moisture levels were in the 20s. We are planning to no-till soybeans into the wheat after we cut it. Rainfall in the county is all over the place with locally heavy amounts. Some have had 9.4 inches of rain since the middle of June. Some had 4 inches in one day. Fuel prices: No. 2 diesel, $3.42 a gallon; B11, $3.27; truck diesel, $3.89; gas, $3.38. Grain prices: wheat, $6.49; corn, $7.04, fall $5.17; beans, $15.58, fall $12.55. David Schaal, St. Peter, Fayette County: It was a warm, humid week here with an inch of rain on June 22 and June 23. This part of the country experienced floods with rain up to the 4-inch mark. Corn and soybeans that survived the rains don’t need more water for awhile, but this is better than a year ago when we were bone dry and temperatures were at the 105-degree mark. Rains and high humidity have hampered wheat harvest. Not too much has been cut in the area but a dry day or two and that will change. Jeff Guilander, Jerseyville, Jersey County: Fields have been planted, replanted, and rereplanted to the point it is time to take what is there. Crops are now tall enough that you cannot see a lot of the holes anymore. So out of sight, out of mind. The big question now is how to kill the weeds that have grown amazingly fast in the soybeans in the last week. Wheat harvest is under way and early indications are promising, but we will have a better idea next week.
Page 7 Monday, July 1, 2013 FarmWeek
CROPWATCHERS Dan Meinhart, Montrose, Jasper County: It was a wet, humid week. At least in some areas, planting was still taking place on June 22 until the heavy rains came in mid-afternoon. It rained almost every day since. Depending on where you are, the rains amounted to 6, 8, or 10 inches for the week. The Embarras River is well out of its banks. This is the third time since we started planting. In Southeastern Illinois there are thousands of acres that still need to be planted or replanted. A lot of fields have not been touched because of the extremely wet conditions. Wheat fields are deteriorating everyday due to the heavy rains. A lot of post chemical application needs to be done, but the ground conditions do not permit travel. We are hoping for better conditions this week. Rick Corners, Centralia, Jefferson County: The beat goes on, or rather is it the pitter-patter of the raindrops. We’ve had another couple inches of rain since my last report. Wheat harvest started late last week and the quality was good, but with anymore rain it is going to deteriorate fast. Some of the fields are standing in water. I took a little drive around the county last weekend (June 22-23) and found there are a lot more first-crop beans to plant than I thought. A boat may be what we need to plant the double-crop beans.
Dave Hankammer, Millstadt, St. Clair County: At the risk of sounding like a duplicate report, it was another warm, wet week. I collected 2.5 inches of rain starting with storms the previous weekend and an additional storm on Wednesday. There were reports of 4 inches or more in the northern part of the county and beyond that caused flooding of fields and road closures in those areas. Temperatures during the week reached into the low 90s. Little field activity occurred through the week due to the wet conditions, although some wheat harvest was done between storms. Hay-making was a gamble again as some farmers tried to make some grass and second-cutting alfalfa only to be disappointed by the unexpected arrival of rain. There still are some fields waiting to be planted to soybeans as soon as conditions will allow. Local grain bids are: corn, $6.65; soybeans, $15.86; wheat, $ 6.51. Have a safe week. Kevin Raber, Browns, Wabash County: Rainfall of about 2 inches for the past week made wheat harvest a challenge. Wheat yields and test weights have been excellent, but I’m afraid with the rain, test weights will begin to fall. Corn is really growing. The first-planted corn will soon be tasseling with the later-planted still less than knee-high.
Randy Anderson, Galatia, Saline County Two words describe this past week — patience and frustration. Rainfall is all over the board from a trace in some places to reports of up to 6-plus inches. We still have a few acres of regular-crop beans to plant and replant some that were drowned out. Early corn and mid-May corn looks good. Wheat harvest is about 75 percent complete. Hopefully, by the time you read this, I will be finished. Post-spraying of beans is taking place where field conditions allow without making ruts. Hard to believe a year ago it was the beginning of the worst drought I have seen. Now it’s hard to find ground dry enough to work. The best part of the past week was a stop at our local orchard for some fresh peaches. Ken Taake, Ullin, Pulaski County: We had very summer-like weather last week here in deep Southern Illinois. We had temps in the mid-90s with high humidity and a lot of thunderstorms moving through the area. We received about 0.4 of an inch of rain on Wednesday and some people received as much as 2 inches over the weekend of June 22-23. Full-season soybeans are planted, and wheat harvest is winding down. Farmers are planting doublecrop beans as fast as they can. I’ve heard that yields and quality on the wheat haven’t been good. On our farm, spraying soybeans and working on equipment has been our main activity. Please be careful this week.
Obama climate plan: Command/control or innovation? BY MARTIN ROSS FarmWeek
The ag and rural impact of President Obama’s new “climate” strategy will depend on whether it leans toward incentives and innovation or a “command-andcontrol” approach, a Far m Bureau analyst advised. The White House last week issued a plan designed to bypass the need for congressional action on greenhouse gas emissions linked to climate change. The president’s plan reinforces the administration’s support for the federal Re n e wa b l e F u e l S t a n d a r d (RFS2) — a g rowing congressional target. It also pledges $8 billion in fossil energy loan guarantees and authorizes use of 10 gigawatts of wind and solar power on public lands by 2022. I t a l s o d i r e c t s t h e U. S. Environmental Protection Ag ency (EPA) to develop
Reform
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com
more stringent carbon emissions requirements for new and existing power plants and new fuel economy standards for heavy-duty vehicles. A m e r i c a n Fa r m B u r e a u Federation policy specialist Andrew Walmsley cited concerns about future farm vehicle or fuel costs under new standards. Collinsville Republican House Energy and Commerce Committee member John John Shimkus Shimkus, who supports “clean coal” technology development, said he fears the president’s proposal would significantly boost consumer utility costs. “You could make the argument that all electricity rates are going to go up,” Shimkus told FarmWeek. “(The president) is going to allow the EPA to be even more powerful and make these decisions.
Continued from page 1 and Bender believes Senate-proposed measures should make security at points of entry and employment “even stronger.” He was hopeful the House might vote immigration measures by Congress’ August recess “or shortly thereafter.” Collinsville Republican U.S. Rep. John Shimkus said the House likely would take a piecemeal approach to immigration-border security proposals rather than taking up the Senate package. House Judiciary Chairman Bob Goodlatte (R-Va.) has proposed his own ag worker plan. “We either will pass our own comprehensive bill or a handful of provisions on immigration,” Shimkus told Far mWeek. “The question then will be, is that enough to go to (House-Senate) conference?” — Martin Ross
“If (Obama) could show us the technology we could use to reduce carbon emissions with coal, I think the industry would do its utmost t o e m p l o y i t . I n r e a l i t y, there’s no such technolog y yet.” Shimkus noted Illinois is a “50-50” state, meeting power needs through a mix of coal a n d nu c l e a r s o u r c e s. A n inability by coal-fired plants to conform or build to new EPA standards could force a “fuel shift” and require retrofitting current plants to use natural gas, he said.
He questioned “what that does to our friends on the far m,” who rely on natural gas as an energy source and fertilizer feedstock. The Obama plan also seeks a new methane-control strategy. Walmsley said the approach “doesn’t a p p e a r t o b e r e g u l a t o r y,” and if it encourages expanded use of methane digesters on livestock farms, “that would be technolog y we could be supportive of.” He said he recognized the plan’s potential to pro-
mote “commonsense things we don’t need to be doing in the name of clim a t e,” i n c l u d i n g r e s e a r ch into alternative energ y and far m adaptation to climati c s h i f t s a n d U S DA b e s t practice “outreach.” “ G ive u s t h e t o o l s a n d provide us a policy framework and marketplace that r e wa r d s e n t r e p r e n e u r s h i p and innovation — not a command-and-control regulator y framework that decreases American competitiveness,” Walmsley told Far mWeek.
The University of Illinois’s Northern Illinois Agronomy Research Center, Shabbona, will host a July 10 agronomy day starting at 9 a.m. U of I Extension specialists and researchers will discuss issues related to the 2013 growing season. No registration or fee is required. A corn rootworm root rating field day will be held in conjunction with the agronomy day. Farmers and agronomists are invited to bring corn root samples for evaluation. After lunch, a general discussion will take place allowing farmers to assess their corn rootwor m injur y and learn about sustainable corn rootworm management. Weather permitting, presentations will take place outside in the research plots. Field topics will include: crop rotation and corn management, corn rootworm resistance to Bt and product efficacy, Goss’s wilt and corn dis-
e a s e s, b r ow n m a r m o r a t e d stink bug, 2013 weed control challenges, and U of I cover crop studies. The 160-acre northern research center is located at 14509 University Road, about five miles north of U.S. Route
30 on University Road, which runs just east of Shabbona and a quarter mile south of Perry Road. For more information, contact Russ Higgins at 815-2741343 or email rahiggin@illinois.edu.
Far mers may learn ag ricultural applications of g eospatial technolog y at a free workshop from 9 to 11 a . m . Ju l y 2 5 i n K a s k a s k i a College’s Lifelong Learning Center, Centralia. Participants will hear an overview of GIS, GPS, and r e m o t e - s e n s i n g t e ch n o l o gies and how they relate to ag riculture, specifically to soil, crop management, and yields. For more information or to r e g i s t e r, c a l l o r e m a i l A r t Bor um at 618-545-3401 or
abor um@kaskaskia.edu or Nancy Michael at 618-5453402 or nmichael@kaskaskia.edu.
U of I northern center slates agronomy day
Kaskaskia College to host geospatial farming workshop
EU ANIMAL CAR
FarmWeek Page 8 Monday, July 1, 2013
Stories and photos by Daniel Grant
Changes to livestock housing c
Hog farmers can successfully transition from the use of sow gestation stalls to group housing and remain efficient, according to European farmers and farm leaders. The major challenge for farmers who attempt the switch, though, is the initial cost. The European Union (EU) implemented a ban on gestation stalls earlier this year. But England actually mandated the change in sow housing systems 14 years ago and had mixed results. “Group housing works fine provided you use the right design,” said Mike Sheldon, an English hog farmer who recently exited the business due to razor-thin margins. “But if you try to cut corners and put sows in the same space as the stalls, it doesn’t work.” Many other English farmers opted to exit the business years ago as they attempted to switch housing systems in 1999, just after the hog market crashed to single-digit prices per hundredweight.
“We lost about half of our breeding herd (since 1999),” said Mick Sloyan, director of the country’s equivalent of the National Pork Board in the U.S. “(Hog farmers) weren’t making any money.” Many English hog far mers weren’t able to survive the triple whammy of the cost of switching housing systems followed in consecutive years by outbreaks of classical swine fever and foot and mouth disease in 2000 and 2001, respectively, Sloyan told participants of the Illinois Farm Bureau EU animal care study tour. Sheldon used group housing for more than a decade before he recently decided to leave the business. “We didn’t lose producers because group housing was inefficient,” he said. “It was the cost of the transition.”
Pig
aga no cha to
sai
on
Vicky Morgan, an English hog farmer, discusses hog pens on her family’s farm. Members of the Illinois Farm Bureau European Union animal care study tour participated in the discussion.
English embrace animal ID, but not other technology
Most livestock farmers in England, unlike their American counterparts, have embraced an animal identification system. But English farmers appear to have fallen behind U.S. farmers when it comes to other technology such as precision farming and biotechnology. “Precision farming is at its infancy in this country,” Gary Ford, adviser for the National Farmers Union in the United Kingdom, told Illinois Farm Bureau members during the European Union (EU) animal care study tour. “Some are embracing it,” he said. “But most are sitting on the sideline waiting to see how it turns out.” Bert Mitchell, a crop and livestock farmer outside of London, is confident satellite imagery would help him do a better job applying manure via variable-rate applications. But he believes precision farming currently is cost prohibitive on his farm, so he continues to apply a fixed rate of nitrogen on FarmWeekNow.com all his fields. For the latest information Ford estimated it takes at least updates from the European 200 acres of cropland to make Union Animal Care Study Tour, precision farming cost effective visit FarmWeekNow.com. in England. “The average size of farms is about 300 to 400 acres,” he said. “But we have a lot that have less than 100 acres.” Many European farmers also have been slow to adopt biotechnology even though in many cases it helps boost crop yields through improved resistance to pesticide, disease, and drought. But that mindset slowly is starting to change due to need, according to Eugene Philhower, ag counselor with USDA’s Foreign Ag Service office in London. Crop yields took a major hit in England last year due to extreme wetness, flooding, and unseasonably cool temperatures. “We’ve seen a change among some major retailers who used to buy GM-free feed for cows who have switched because it’s really difficult to get non-GM beans,” Philhower said. But many English livestock farmers, who have dealt with such devastating diseases as BSE, bovine tuberculosis, and foot and mouth disease, embraced their animal identification and traceability system. “We can trace every animal with an electronic animal movement system,” said Mick Sloyan, director of the United Kingdom’s National Pork Board. “Most people see (the traceability system) as an advantage.” An animal traceability system benefits consumers, who expect to know the origin of their food, and livestock farmers, who can use it to reduce disease outbreaks and market disruptions, according to Sloyan.
EU dairy industry in transition
Stacy Schutz, Greene County Farm Bureau member, pets a beef cow on the Robert Mitchell farm near Coventry, England. Jim Fraley, Illinois Farm Bureau livestock program director, looks on during the IFB European Union animal care study tour.
The livestock industry in the United Kingdom, which was devastated by outbreaks of BSE in the 1990s and more recently foot and mouth disease, took another hit last year. English dairy farmers last year culled about 38,000 cows due to an outbreak of bovine tuberculosis, according to Lord Henry Plumb, a far mer and for mer president of the European Parliament. “In some cases, whole herds have been totally eliminated,” Plumb told participants of the Illinois Far m Bureau Animal Care Study Tour of the European Union. The outbreak of bovine TB cost English livestock farmers about $100 million, Plumb noted. Struggles with the disease outbreak were compounded by weather issues last year, which were just the opposite of the drought that devastated the Midwest.
“It was a very bad year last year,” Plumb said. “It was terribly wet.” The loss of dairy cows along with economic struggles in the livestock industry put England in a similar position to Illinois. Both currently import the majority of dairy products. “We import about 1.2 billion pounds of dairy products every year,” Plumb said. Farmers in England responded to their losses by focusing more on improved quality and production methods to produce better products. “When I started farming, you tried to produce as much as you can as cheap as you can,” Plumb said. “Now the focus is on quality (and improved production methods). They (English farmers) are starting with consumers and working backward, which is absolutely the right way to do it.” IFB members witnessed the transition first hand at the Wren Davis farm near London.
The farm, which previously milked 100 cows, now is a dairy distributor in the region. It collects milk from local dairies and distributes it to 8,000 customers each week. “For the farm to make money, we had to do different things, we had to diversify,” said Virginia Deradour, who manages her family’s farm. Wren Davis farm converted its milking parlor to a microbrewery. It also maintains herds of 60 beef cows, 15 hogs, and raises about 300 turkeys and 22 geese each year that are sold around Christmas. Wr e n D a v i s f a r m a l s o i s proactive about consumer education. The majority of consumers in England, much like the U.S., are becoming further removed from farms. “We host educational visits,” Deradour said. “I believe (school children) need to realize where their food comes from. They’re my future customers.”
RE STUDY TOUR
Page 9 Monday, July 1, 2013 FarmWeek
costly for European farmers
Many farmers in Europe apparently don’t want to take the same risk as their English counterpar ts. Just 10 of 27 EU countries were compliant with the pig welfare directive as of last week, according to Zoe Davies, general manager of the National g Association in the United Kingdom. The EU recently filed legal proceedings ainst nine non-compliant countries, Davies ted. Some European farmers opted not to ange their systems because they still are able sell their pigs. “The system is illegal, but not the pork,” she id. Egg farmers also struggled with a 2012 ban n battery cages in the EU. The transition to enriched cage systems (gen-
erally larger cages) cost the industry about $600 million, according to Chris Dickinson, poultry specialist with the EU’s National Far mers Union. “Last year we were really short on eg gs (which caused a spike in prices),” he said. “It took about a year to get the birds back in circulation.” Now, European egg producers seem to have overcompensated for last year’s shortage. “We currently have an oversupply of eggs,” Dickinson said. “Wholesale prices of eggs have dropped” by about $1.50 per dozen. Unfortunately, many European livestock producers struggling with thin margins are preparing for more possible regulations if they want to remain in business. A beak-trimming ban in the poultry industry is scheduled for review in 2015 while a ban on swine castration could take effect as early as 2017.
Daniel Grant
Eleven farmers, all of whom have some species of livestock on their farms, will return to the U.S. this week after participating in the Illinois Farm Bureau European Union Animal Care Issues Tour. The group, which also includes a veterinarian and a veterinary technician, visited farms in the United Kingdom, France, Holland, Germany, and Denmark. Sow housing, in particular, received a great deal of attention during the tour. FarmWeek Senior Commodities Editor Daniel Grant accompanied the group and provides the reports on this page.
Eugene Philhower, left, an agricultural counselor with USDA’s Foreign Ag Service, updates Illinois Farm Bureau animal care study tour participants on European agriculture practices. Philhower hosted tour participants at the Wren Davis farm in England.
Feed costs, farmland prices skyrocket in UK
Bert Mitchell, left, showcased construction of a new beef cattle facility on his family’s farm near Coventry, England. Illinois Farm Bureau European Union animal care study tour participants appear, left to right, Al Lyman (Henry County), Deb Moore (Warren County), Abe Trone (Stephenson County), Pam Janssen (Woodford County) and Brian Spannagel (Sangamon County).
London farmer James Davis talks with Kate Hagenbuch, a LaSalle County Farm Bureau member, about converting the family’s milking parlor into a microbrewery.
The U.S. and United Kingdom are separated by an ocean, but farmers at both locations are in the same boat when it comes to the price of feed and farmland. The price of farmland in England in the past decade skyrocketed from an average of about $3,000 per acre to about $15,000 per acre, which is comparable to the current price of prime farm ground in Illinois. “There’s been a massive increase in the value of farmland,” Gary Ford, adviser for the National Farmers Union (NFU) in London, told FarmWeek during the Illinois Farm Bureau animal care study tour of the European Union. The jump in prices was a blessing in recent years for farmers who wanted to retire. But it’s been a major challenge for young farmers and those looking to expand. “Traditionally, land always traded around 1,500 to 2,000 pounds (about $2,250 to $3,000 per acre),” Ford noted. “But in the last 10 yea rs, th a t r ul eb o o k h a s b een thrown out the window.” Bert Mitchell, a crop and livestock farmer in Coventry, England, said land prices in his area have been influenced by investors from London and other locations who are seeking safe investments in an otherwise shaky economy. “It’s expensive to buy land,” he said. “A lot of investors from the city have come out and are buying
farmland and they’re willing to pay stupid money.” Mitchell decided against expanding his acreage and instead reinvested in his far m. He is cur rently building a modern cattle barn. “You’ve got two choices,” he said. “Expand what you’ve got or invest in new buildings and equipment.” Farmers in England and across Europe also are struggling with high input costs, including feed, fuel, and fertilizer. Gas prices in England last week were about $9 per gallon and diesel was even more expensive. “The cost of production has gone up significantly,” Ford said. Feed costs for poultry producers increased about 40 percent in the last two years, according to Chris Dickinson, NFU poultry specialist. “It’s been a really tough year because of feed prices, which make up about 60 percent of the cost of (egg) production,” Dickinson said. “Some smaller producers have gone out of business.” Another hot issue in England, as in the U.S., is migrant workers. “In Eastern Europe the cost of living and wages are lower, so many workers have moved (to Western Europe) and taken agricultural (and other labor-intensive) jobs,” Ford said. “Modern countries wouldn’t survive without (this) labor, but it causes conflict,” he added.
PRODUCTION
FarmWeek Page 10 Monday, July 1, 2013
New safety decal symbol of OSHA/industry solutions BY MARTIN ROSS FarmWeek
Federal expectation, industry innovation, and joint education are steadily improving Illinois farm/elevator safety, according to University of Illinois ag safety specialist Robert Aherin. Aherin is a lead coordinator with the Grain Handling Safety Coalition (GHSC), which has joined with the Grain and Feed Association of Illinois (GFAI) and the federal Occupational Safety and Health Administration (OSHA) to develop a new “stop sign” grain bin entry decal. The decal reminds workers to electrically “lock out” potentially hazardous equipment, stay clear of waist-high grain, and follow other best practices. It’s the latest example of how OSHA is working with private groups to foster safety solutions. “It took a period of time for us to get to know each other,” Aherin told FarmWeek. “It took awhile
to understand the issues between us.” For example, in the wake of the death of two young men in a 2010 Mount Carroll elevator incident, OSHA altered its standards to prohibit workers
from entering a bin while grain sweep augers are running. Manual assistance often is needed to help propel augers, Aherin said. GHSC/GFAI member Lynn McClure of Central Illinois’ Western Grain Marketing LLC responded to OSHA/ele-
vator concerns by designing a remote auger handle with an automatic equipment shutdown release mechanism. In addition, OSHA guidelines direct use of a body harness and lifeline by workers entering a bin with stored grain or planning to walk on or stand in grain. Aherin noted few current bins are designed to include a lifeline system, and many are illequipped to support a lifeline anchor point that can sustain a necessary 1,800 pounds of grain-pulling force. GFAI and GHSC helped develop a low-cost solution: a high-strength steel tube that can provide a reliable anchor point, a pulley system to accommodate lifeline movement, and a “centrifugal locking” mechanism that pulls the line taut if a worker drops suddenly. The pulley/anchor system costs roughly $500, a full-body harness $300 to $500 “at most,” Aherin reported. That’s a nominal price compared
with the cost of a suffocation death in both human and economic terms, he said. While OSHA can enforce penalties only against businesses with more than 10 employees, farmers with even one employee fall under OSHA standards. An
Illinois farmers may have waterhemp screened for resistance
The University of Illinois’ weed science program is offering Illinois farmers free screening of waterhemp for herbicide resistance during the growing season. With continued financial support from the Illinois Soybean Association (ISA), more than 1,000 plant samples have been screened through the collaborative effort between the U of I and ISA, according to Aaron Hager, U of I weed sciences professor. “This valuable service helps farmers and researchers track and understand the evolution of herbicide resistance in waterhemp across the state,” Hager said. Although there is no fee, Hager said weed scientists could not guarantee the timing of when each screening result will be available. Because of the method used in the tests, a test result of ‘sensitive’ to glyphosate does not rule out the possibility the plant actually is resistant to something else, Hager noted. Exact locations of samples or any names associated with samples will be not made available to anyone without permission. Ideally, samples should be sent the same day they are collected, Hager said. If necessary, samples can be stored for a day or two in a refrigerator — but not a freezer — until mailed, Hager said. To have plants screened, Illinois farmers should: • Print and complete an online submission form available at {http://tinyurl.com/mqal6ya}. Complete and submit a separate form for each field sampled. • Select five waterhemp plants that survived in a field after glyphosate was applied. • Remove the top inch or two — containing young, newly emerged, healthy leaves — from each plant and put inside in a sealed, sandwich-sized plastic bag. Place each plant in a separate bag. • Put the bags in an envelope and send by overnight delivery to Chance Riggins, 320 ERML, 1201 W. Gregory Drive, Urbana, Ill., 61801. • Don’t mail samples on a Friday or Saturday, and don’t send samples to the U of I Plant Clinic. For more information, contact the U of I’s Pat Tranel at 217333-1531 or via email at tranel@illinois.edu.
Auction Calendar
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Efficiency
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©2012 GROWMARK, Inc. A Farm Bureau Affiliate A11429
unsafe bin or a lack of worker training exposes employers to legal liability, Aherin warned. “If a farmer comes into court and has done no training, that farmer’s often held significantly liable,” he stressed.
Tues., July 9. 10 a.m. McDonough Co. Land Auc. John Nickson Estate, MACOMB, IL. Lowderman Auction & Real Estate. www.lowderman.com Thurs., July 11. 2 p.m. IL Time. Clark Co. Land Auc. Donald and Rose Slater, MARTINSVILLE, IL. Parrott Real Estate. www.sellafarm.com or www.auctionzip.com id 4851 Fri., July 12. 10 a.m. Macoupin Co. Tillable and Recreational Land. CNB Bank & Trust, N.A., Trustee U/A Jean Ashworth and CNB Bank & Trust, N.A., Trustee U/W Charles H. Ashworth, CARLINVILLE, IL. Mike Crabtree, Auctioneer. www.mikecrabtreeauctions.com Sat., July 13. 10 a.m. Construction & Farm Machinery Auc. Virgil Neff, PADERBORN, IL. Dale Brumester Auc. Serv. and Mark Krausz Auc. Serv. Sat., July 13. 9 a.m. Estate Auc. Max Murphy Est., KEENES, IL. Barnard Auctions. www.proxibid.com/barnard or www.auctionzip.com, auctioneer id#2008
Sat., July 13. 9 a.m. Consignment Auc. TREMONT, IL. Cal Kaufman and Brent Schmidgall, Auctioneers. tremontconsignmentauction@yahoo.com Mon., July 15. 7 p.m. Massac Co. Land Auc. METROPOLIS, IL buyafarm.com Thurs., July 18. 6 p.m. IL Time. Jasper Co. Land Auc. Sandra Chapman and Susan Wells, NEWTON, IL. Parrott Real Estate. www.sellafarm.com or www.auctionzip.com id 4851 Sat., July 20. 10 a.m. Real Estate and Contents. Diane Oros Successor Trustee of Leroy Landmeier Trust, PLANO, IL. Chris Wegener and Joe Wegener, Auctioneers. www.go2wegenerauctions.com Sat., July 20. 10 a.m. Large Estate Auc. Roy Clapp Est., CABERY, IL. Immke and Bradley Auction Service. www.biddersandbuyers.com/immke Thurs., July 25. 7 p.m. Wayne Co. Land Auc. CISNE, IL. buyafarm.com Tues., Aug. 6. Real Estate Auc. Wilkinson Farm, OXFORD, IN. schraderauction.com
HEALTH AND SAFETY
Page 11 Monday, July 1, 2013 FarmWeek
IFB aids in national farm hearing study BY MARTIN ROSS FarmWeek
Twenty Illinois farmers are participating in a nationwide study aimed at combating farm hearing loss and the heightened risks associated with it. Illinois Farm Bureau recently partnered with the University of Michigan (U of M) to enlist members in HEAR on the Farm. The research study is designed to refine what U of M Occupational Health Nursing Program Director Marjorie McCullagh terms future “treatments” for ag hearing care. Hearing loss or impairment eventually impacts roughly 75 percent of farmers, and problems often start at an early age, McCullagh stressed. She compares her study to a “clinical trial” used to assess new drugs. But rather than testing experimental treatments, HEAR on the Farm volunteers will provide information about current farm noise ‘Use of hearing pro- exposure and check in tection seems to be with researchers six and 12 months after enrollhighly related to the ment. And instead of new convenience of the miracle drugs or advanced therapies, McCullagh and device.’ company hope by July 2014 to prescribe improved options for — Marjorie McCullagh farm hearing protection. University of Michigan For now, McCullagh offers a basic insight: The type of hearing protection a farmer uses is less important than simply using it. To that end, she suggests farmers keep hearing protection at hand — ideally, different types of protection such as foam or pre-molded earplugs or noise-attenuating earmuffs. Having a variety of protection readily available in the machinery shed, at the bin, or in the field ensures farmers can gauge their ideal protection. “Use of hearing protection seems to be highly related to the convenience of the device,” McCullagh told FarmWeek. “In a pilot study, we found that hearing protector use increased dramatically when we supplied farmers with an assortment of hearing protectors, using the most current technology available and enough different pieces so they could kind of sprinkle them around their operation. A lot of my work is focused on helping people get over that hump.” The American Farm Bureau Federation-endorsed HEAR on the Farm study will test five combinations of three strategies, including education as well as physical aids. Farm reports will help researchers compare “treatments” and, according to McCullagh, determine “which approach results in the best outcomes for farmers.” Participants are randomly assigned a treatment, and they can respond to U of M online or by phone, McCullagh said. U of M is not identifying study participants.
CTIC conservation tour heading to Livingston County
The Conservation Technology Information Center’s (CTIC) 2013 conservation tour will be July 9-10 in Livingston County. The focus will be innovative conservation practices in and around the Indian Creek watershed. The tour will include an up-close look at aerial seeding of cover crops and examination of a soil pit to view cover crop root systems. Tour participants will walk demonstration plots with farmers and researchers, comparing an array of nutrient management practices and learning about programs to track plant-available nitrogen. Farmers also will discuss their manure management strategies. A farmer panel will discuss how conservation practices enhance economic sustainability as well as protect resources. Tour registration fees are: $125 for CTIC members, $150 for nonmembers, and $60 for farmers and federal and state officials. Accommodations are available at the Bloomington Airport Holiday Inn and Suites. The telephone number is 309-662-4700. Tour updates and other information are available online at {ctic.org/CIATours}. Direct questions to Nicholle Vaughn at vaughn@ctic.org or 765-494-9555.
Sound advice: Farm protection
Researchers with the HEAR on the Farm study offer tips for ag hearing protection: • Start young. Even teens working on the farm can sustain noise-induced hearing loss, University of Michigan Occupational Health Nursing Program Director Marjorie McCullagh told FarmWeek. “Something like 20 percent of youngsters by age 12 may sustain hearing loss significant enough to interfere with normal daily conversation,” added Michael Cohen, a clinical research coordinator working with McCullagh. Often, hearing loss is well-established before an individual realizes it. Early prevention and awareness are crucial. Signs of existing damage may include a feeling of “fullness” or ringing, buzzing, or chirping in the ears. Also telling is a temporary hearing “threshold shift” following a day of work. McCullagh recommends farmers set their truck radio at a barely audible setting at the start of the day. If they can’t hear the music when they head home, they already may be suffering loss, even if hearing recovers the next day. • The right tool for the right job. Unlike a manufacturing environment where a worker reports to the same station each day, farm noise exposure is “diverse and variable” even
over the course of a day, McCullagh noted. A single form of protection may not be adequate for every chore, and hearing protection needs vary with the seasons. Grain dryers generate some of the most hazardous farm noise levels. In that case, workers should seek hearing protection with a higher U.S. Environmental Protection Agency “noise reduction rating” (see product label). In situations with lower noise levels, farmers may attempt to block too much sound. That may hamper communication or awareness in a potentially risky environment, and as a result, farmers may stop using protection altogether. • Pick your protection. McCullagh acknowledged farmers may forego protection “when it interferes with getting work done.” Protection must provide the mobility, comfort, and efficiency suited to each job and personal tastes. Ear canal shapes vary, and “no one size fits all,” Cohen said. Seasonal and weather factors also merit consideration. In a recent study, McCullagh found hats and other cold-weather gear limited the comfort and effectiveness of a particularly promising hearing loss device. — Martin Ross
FB IN ACTION
FarmWeek Page 12 Monday, July 1, 2013
Fulton, McDonough teachers attend summer institute school
When asked what they did on their summer vacation, 13 Fulton and McDonough County teachers can say they went to school. The group participated in the recent Summer Ag Institute sponsored by the Fulton and McDonough County Farm Bureaus. The program, entitled BY ELAINE STONE
“Great Grains,” was a threeday, intensive seminar designed to teach agriculturerelated subject matter, focusing on grain production. Participating teachers not only earned 21 continuing education credits for professional growth re-certification but will also take what they learned back to their classrooms in the fall. Teachers began their education at the Western Grain Marketing (WGM) rail hub
facility near Adair with a presentation by Illinois Farm Bureau Ag in the Classroom staff. During lunch, the educators had an opportunity to ask questions of a farmer panel, which included Fulton County Farm Bureau member Holly Spangler and McDonough County Farm Bureau President Colby Hunt. The group then toured the WGM facility, Tri-Oaks Feed Mill in Bushnell, and Kelso Hog Farms. Other activities included tours of Sunrise Ag’s river terminal facility in Havana, Aventine Renewable Energy in Pekin, Granite City Food & Brewery in East Peoria, and the Monsanto Research Farm in Monmouth. The institute concluded with a visit to First Farm Credit in Macomb for a discussion on precision agriculture. Elaine Stone is manager of the Fulton County Farm Bureau. She can be reached at 309-547-3011.
Charles Boateng, a technology development research associate at the Monsanto Learning Center in Monmouth, showed corn seedlings to Fulton and McDonough County teachers. The educators participated in a recent Summer Ag Institute sponsored by the Fulton and McDonough County Farm Bureaus. (Photo by Elaine Stone, Fulton County Farm Bureau manager)
Orr Field Day focus is crops
The University of Illinois’ Orr Research and Education Center, Perry, will host its annual field day from 9 a.m. to noon July 16. The format has changed to a morning event this year. Three tours will leave from the center at 9, 9:20, and 9:40 a.m. U of I experts will discuss current issues in crop production and protection. Tour participants will receive a free meal. For more information, contact the U of I’s Mike Vose at 217-236-4911.
Learn to Shine with IFB’s Young Leader Discussion Meet Friendly Competition That Builds Your Leadership Skills Show your art of discussion for hot agricultural topics - and compete for great prizes, including a chance to represent Illinois in the National Discussion Meet.
District & State Discussion Topics: How do we encourage young farmers and ranchers to continue to be involved in Farm Bureau? How can young SURGXFHUV OHDG HYHQ LI WKH\ GRQ·W KROG HOHFWHG SRVLWLRQV RQ boards? US agriculture is one of the major industries for the American economy. What can farmers do to stimulate more economic growth?
Additional State Topics: How should Farm Bureau engage farmer/rancher members, representing all types and kinds of operations (i.e.
conventional, organic, large, small and niche markets, to work together to better promote a more positive image of agriculture? What are the best practices for youth working on farms and ranches to ensure their safety and provide them learning opportunities in the area of agriculture production? How can Young Farmers & Ranchers work with elected and DSSRLQWHG RIÀFLDOV WR HOLPLQDWH XQQHFHVVDU\ RU H[FHVVLYH regulations placed upon agriculture while ensuring that new UHJXODWLRQV DUH MXVWLÀHG EDVHG RQ WKHLU FRVWV DQG DQWLFLSDWHG EHQHÀWV"
Entry Deadline August 1 (to Illinois Farm Bureau) Contact your county Farm Bureau® for eligibility and contest information.
IAA District
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1&2 3 4 5&6 7&8 9 10 11 & 12 13 & 17 14 15 & 16 18
July 29 August 15 August 19 August 14 August 7 July 31 August 14 August 27 August 20 August 6 August 20 August 15
7:00 7:00 7:30 6:30 7:00 7:00 7:00 7:00 7:00 6:30 7:00 7:00
Stephenson County FB, Freeport Henry County FB, Cambridge Mendota Civic Center, Mendota Dwight Village Hall, Dwight Peoria County FB, Peoria Hancock County FB, Carthage Menard County FB, Petersburg Champaign County FB, Champaign Edwards County FB, Albion Montgomery County FB, Hillsboro Madison County FB, Edwardsville Jackson County FB, Murphysboro
p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.
For more details - www.ilfb.org/youngleaders
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FROM THE COUNTIES
Page 13 Monday, July 1, 2013 FarmWeek
BIDDING BOOSTS FUND
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HAMPAIGN — Farm Bureau Foundation will sponsor a Pull for Agriculture at 7 a.m. July 13 at the Olde Barn Sporting Clays in Oakland. HRISTIAN — Farm Bureau will sponsor a cover crop meeting at 6 p.m. July 24 at the People’s Bank and Trust community room. For reservations, call the Farm Bureau office at 824-2940. FFINGHAM — Farm Bureau will host its member appreciation picnic at 6 p.m. July 21 at Evergreen Hollow Park in Effingham. Colgate Country Showdown participants, Lee Ann Bussman and Dakota Esker, will provide the entertainment. Members may swim from 7 to 9 p.m. at the Effingham Area Kluthe Memorial Pool. Call the Farm Bureau office at 342-2103 for reservations or more information. ASALLE — Season tickets are available for the 2013 LaSalle County 4-H and Junior Fair July 10-14. Cost is $20 for ages 5 and older and may be purchased at the Farm Bureau office. ACON — Farm Bureau annual meet-
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Auctioneer Ben Ladage, left, enlisted help from Phil Sidles and Diana Beaty to coax bids from Sangamon and Menard County Farm Bureau members and Lincoln Land FS patrons attending their recent annual Farmer/Patron Appreciation Day. About 1,500 members attended, raising $5,300 for the Sangamon County Farm Bureau Foundation Scholarship Program through silent and live auctions. (Photo by Ashley Beutke, Sangamon County Farm Bureau assistant manager.)
IFB commodities conference July 31 in Bloomington-Normal The future of farming will be the focus at the annual Illinois Farm Bureau commodities conference. The event will be held July 31 at the Marriott Hotel and Conference Center in Bloomington-Normal. “Each year we strive to make sure we offer topics and speakers that our members and industry professionals will find useful,” said Mike Doherty, IFB senior economist. “And I know we’ve struck that perfect balance again this year.” The theme of this year’s event is “Next Generation Agriculture: What to Expect and What You Need to Know.” Sessions will focus on topics such as farm management and transitions, ag advocacy, animal care, market and weather trends, farm policy, and regulations. Pre-registration for the conference is available online at {ilfb.org} through July 22 or by contacting the local Farm Bureau office. Registration materials also may be requested by contacting Nicole Moore at 309-557-3343 or by email at nmoore@ilfb.org. Registration is $35 per person and includes lunch. Walk-up registration the day of the event will begin at 7:30 a.m. at the Marriott. IFB prior to the conference will host an international reception on July 30 at 6:30 p.m. at the Marriott. Don Norton, president and CEO of the Illinois Ag Leadership Foundation, will be the keynote speaker. The international reception is free to pre-registered conference attendees.
IEPA taking comments on water quality report
The Illinois Environmental Protection Agency (IEPA) has scheduled a public hearing on a draft of the 2014 Integrated Water Quality Report and list of impaired waters. The hearing will start at 10:30 a.m. July 9 in the Sangamo Conference Room, 1021 N. Grand Ave. East, Springfield. The agency will accept written comments on the draft through Aug. 8. A copy is available online at {epa.state.il.us/water/tmdl/303d-list.html}. IEPA is required to assess waters of the state and determine if they comply with applicable water quality standards. Comments should be sent to Hearing Officer Dean Studer, Mail Code 5, Re: Integrated Report 2014, Illinois Environmental Protection Agency, 1021 N. Grand Ave. East, Box 19276, Springfield, Ill., 62794-9276.
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ing and member appreciation dinner will be at 6 p.m. July 26 at the Macon County Fairgrounds Pride of the Prairie Building. Cost is $2. Tickets are available at the Farm Bureau office through July 18. Proceeds will benefit the foundation scholarship fund. ONTGOMERY — Prime Timers will host a noon luncheon July 17 at the Farm Bureau building. Undersheriff Rick Robbins will be the speaker. Call the Farm Bureau office at 5326171 to register or for more information. EORIA — Farm Bureau will take Michigan blueberry orders for July 18 pickup at the Farm Bureau office. Blueberries are available to members in 5- and 10pound boxes. Deadline to order is July 11. Call the Farm Bureau office at 686-7070 for more information. • Farm Bureau will sponsor an exhibit at the Heart of Illinois Fair July 12-20 at Expo Gardens in Peoria. • Farm Bureau will sponsor a workshop with Ryan Gammelgard, attorney with the Illinois Farm Bureau Office of
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the General Counsel, from 10 a.m. to noon July 16. His presentation will focus on easements, rights-of-way, drainage laws, and the fence law. ICHLAND — The Young Leader Committee will sponsor a pedal tractor pull at 4 p.m. July 11 at the Richland County Fair. Cost is $1 for both children and adults. Call the Farm Bureau office for more information. • The Young Leader Committee will sponsor a team and individual trap shoot Aug. 17 at the County Line Gun Club in Noble. Register online at {richlandcountyfarmbureau.com} or at the Farm Bureau office. ANGAMON — Farm Bureau Foundation will sponsor a golf outing beginning at 11 a.m. July 12 at Edgewood Golf Course in Auburn. Dinner will begin at 5 p.m. Call the Farm Bureau office at 753-5200 to register or for more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau.
PROFITABILITY
FarmWeek Page 14 Monday, Juy 1, 2013
Site specific agriculture offers opportunities
Technology advancement continues to impress and even amaze me. Whether it is improved guidance through auto steering or improved control by row, nozzle, or boom section, we continue to see Sid Parks advancement and adoption of these precision technologies. Producers today have the luxury of many different options to guide, control, and record what is being done. All these layers of
BY SID PARKS
information can be used to help analyze actions or input choices to improve decisions for future production selection. Among the challenges is to understand what works best for your needs, how much to pay for it, and where to go to get training or support in how to utilize the technologies. Illinois producers have a good opportunity to explore these technologies and more at InfoAg 2013 July 16-18 in Springfield. This is a conference where producers or retailers interested in site-specific techniques and technology may interact with vendors, educators, and practitioners
on a wide range of topics. Further information can be found at {infoag.org/}. With all the wet spring str ug gles, some far mers may give up on field mapping or documentation of field operations. While this is an understandable reaction to a difficult growing season, documenting what has been done may prove important later. Changes in planting intentions, replant or ponded areas, hybrid or variety adjustments are all easily attributed. You also might find the information useful to quantify the financial impact of ponded areas for
future drainage improvements and other such projects. Many mapping systems provide tools for documenting important layers of information when months from now, people are trying to understand or explain some variation in their harvest maps. With the difficulties experienced this spring and general challenges with the overall economy, some may take a “hunker down” position and wait to see what happens. While I understand that position, I don’t agree with it. When faced with challenges, decisions
based on the best infor mation available are preferred. Precision technologies can help provide cr ucial infor mation of what is working well and what is not. Investments in technolog y typically pay off quickly in either increased efficiency or reduced costs. If you don’t have a good system of documenting how you will produce your 2013 crop, call your FS crop specialist to schedule a visit and explore options available.
is a change after 10 consecutive months of losses,” Plain told FarmWeek. “We’re back in black for several reasons,” he continued. “We have very strong hog prices, (feed prices moderated), and slaughter during the last three months was below expectations.” Hog prices seasonally peak in the May, June, and July time period, and Plain predicted markets this year could follow
a similar pattern. “It looks like we’ll remain profitable a while longer,” Plain said. “Whether or not
Plain explained. “(Hog farmers) lost a lot of money last year, even with the secondhighest hog price ever. The
tive with expansion plans in coming months until the size of the crops and feed prices are known this fall.
Sid Parks is GROWMARK’s agronomy information technologies manager. His email address is sparks@growmark.com.
Hog farmers back in black after 10 months of losses
BY DANIEL GRANT FarmWeek
The economic outlook for hog farmers improved last month after 10 consecutive months of losses. Hog prices and pork cutout values last month reached the highest level since June of 2012, according to Ron Plain, University of Missouri ag economist. “We’re actually making money (last month), which
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10-12 lbs. 40 lbs.
Range Per Head $28.59-$45.00 NA
Weighted Ave. Pric5 $36.10 NA
This Week Last Week 81,658 66,958 *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 $97.84 $98.30 -$.46 $72.40 $72.74 -$.34
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week $119.00 $119.00
Prev. week $121.31 $121.00
Change -$2.31 -$2.00
‘It looks like we’ll remain profitable a while longer.’ — Ron Plain University of Missouri ag economist
(hog farmers) remain profitable (beyond this month) depends if feed prices drop with hog prices this fall.” USDA predicted crop production this year will increase and prices will moderate compared to last year when the historic drought evaporated crop yields and pushed feed prices to record highs. “The big factor (for hog and other livestock producers) moving forward is the weather, its effect on corn and soybean production, and what happens to feed costs,”
problem was feed costs were the highest ever.” USDA last month lowered its national pork production estimate for 2013 by 0.2 of a percent from its May forecast to 23.43 billion pounds. Hog slaughter the middle of last month was down a half percent compared to the same time a year ago. “There’s been less pork and higher hog prices (in recent weeks) than (analysts) thought,” Plain said. He believes most pork producers will be conserva-
“It normally takes five months of profits before there’s (significant) expansion of the breeding herd,” Plain said. “If there’s a good corn crop, sow numbers could pick up.” USDA in its quarterly hogs and pigs report Friday estimated the number of hogs and pigs in the U.S. as of June 1 totaled 66.6 million, down slightly from last year. The breeding inventory totaled 5.88 million, while the number of pigs per litter hit a record of 10.31.
Tuesday: • Ag Weather with Chesapeake Meteorology • Michelle Damico of Michelle Damico Communications • Dr. Steve Meyer, Paragon Economics livestock and agricultural economist Wednesday: • Warren Goetsch, Illinois bureau chief of
environmental programs • Mike Doherty, Illinois Farm Bureau senior economist • Dan Rutherford, Illinois state treasurer • Brian Spannagel, member of the Animal Care Market Study Tour to Europe Thursday: • Pat Stieren, Illinois Farmers’ Market Association executive director • Frank Butterfield, Landmarks Illinois
director of Springfield field office Friday: • Sara Wyant, AgriPulse publisher • Mike Doherty, IFB senior economist • Chuck Spencer, GROWMARK Inc. director of governmental affairs
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 $137.73 $136.62 $1.11
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 116-168 lbs. for 106.19-135 $/cwt. (wtd. ave. 118.27), wooled and shorn 172-181lbs. for 115-117 /cwt. (wtd. ave. 116.32)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 6/20/2013 7.8 14.8 5.8 6/13/2013 2.8 21.6 14.1 Last year 7.6 19.6 30.1 Season total 1281.7 56.6 566.7 Previous season total 1202.1 63.0 1299.0 USDA projected total 1350 1025 750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
To find a radio station near you that carries the RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”
PROFITABILITY
Page 15 Monday, July 1, 2013 FarmWeek
CASH STRATEGIST
USDA planting shocker
The USDA dropped a planting “bombshell” on the trade Friday, keeping its corn planting forecast the same as the March intentions, while raising the soybean forecast 600,000 acres from the earlier forecast. The agency noted — midday Friday it plans to re-survey 14 states for soybean plantings in July to gain new insight, given this year’s slow progress. The new data will be reported in the August crop report. However, don’t get your hopes up that USDA will revise the soybean number down sharply at that time. Total crop plantings are 2.9 million less than they were in 2011, and that was the year prevent-plant acres for all crops totaled 8.4 million across the major corn-producing states. North Dakota alone accounted for more than half that total. Even though planting has been problematic this year, it hasn’t been nearly as bad as the situation was in the northwestern Corn Belt in 2011. We’d liken the situation more closely to 2009, a year in which only 2.4 million acres were designated as prevent plant. Last year, prevent-plant
acres totaled 1.2 million. Another factor that plays into the mix is the larger planting of double-crop soybeans this year. Soft red wheat plantings were significantly higher last fall, paving the way for a big jump in double-crop plantings. USDA is projecting a 2.4-million-acre increase to 7.8 million acres this year. The increase in double-crop plantings should be a drag on soybean yield potential, but it does partly explain how soybean acres could increase even with the larger corn plantings. Projected single-crop soybean plantings are forecast to drop 1.2 million from last year. In the end, it’s important to recognize the total acreage planted and Conservation Reserve Program acres dropped 5.8 million from last year. Plantings on the eight major crops adjusted for double-crop soybeans dropped 2 million acres this year. Still, we do expect some downward revision of plantings when new acreage data is released in August. They likely will be adjusted again in October when the Farm Service Agency planting data is nearly complete. But, don’t pin your hopes on any huge reductions. History suggests combined corn and soybean plantings may be reduced 1 million to 1.5 million acres at most.
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Corn Strategy
ü2012 crop: Old-crop corn is going to fight the perception of larger-than-expected plantings and good growing weather. Take advantage of current prices, especially with the good basis levels, to price remaining old-crop inventory. ü2013 crop: The negative sentiment of USDA’s planting numbers will weigh on prices, especially as long as weather remains good. Still, prices are due for a short-term low. Wait for a rebound to $5.30 to make catch-up sales. vFundamentals: There’s no doubt the USDA numbers sent a shock through the industry. Even if acres decline from the current forecast, they will still be large enough to ensure a large crop, unless weather would turn extreme later this summer. Even potential for old-crop strength will be blunted by less aggressive end user buying, along with steadily declining wheat prices. Look for those premium old-crop basis levels to soon begin evaporating.
Cents per bu.
Soybean Strategy
ü2011 crop: July soybeans managed to reach a new high, but the huge premium oldcrop prices have over the new crop will start to take a toll on spot demand unless weather starts to impact new-crop potential. That premium will discourage spot demand as much as possible. Price any bushels you still own. ü2012 crop: Traders will tend to dismiss the planting estimate because of problems in the northwestern Corn Belt. But the acreage still will be large enough to produce a crop that’s more than enough to meet demand until the next South American crop arrives. Use prices above $12.50 on November soybeans for catch-up sales. vFundamentals: The actual numbers forecast by USDA oftentimes aren’t as important as the sentiment that accompanies them. Many traders will tend to dismiss the planting number, but history indicates that plantings aren’t likely to
drop as much as some of the market “chatter” might suggest.
Wheat Strategy
ü2013 crop: The near-term trend has turned negative, with Chicago July futures slipping below critical $6.64 support. This opens the door for a test of $6.50, maybe even $6. Wait for a recovery before making needed catch-up sales. vFundamentals: The endof-week break in the market resulted from the USDA acreage and stocks reports. USDA pegged all U.S. wheat acres at 56.5 million acres vs. expectations for 55.75 million.
Both winter and spring plantings were higher than expected. The stocks number came in below trade expectations of 750 million bushels at 718 million bushels. Larger wheat feeding with the lower spring prices may have been the key. Prior weakness was tied to reports of western wheat yields being better than expected. Export demand for U.S. wheat has shown signs of improvement, reflected in the weekly export sales number of 731,800 metric tons, exceeding trade expectations. A metric ton of wheat contains 36.74 bushels.
PERSPECTIVES
FarmWeek Page 16 Monday, July 1, 2013
The Illinois Farm Families field moms gather beside their acre on the Paul and Donna Jeschke farm near Mazon in Grundy County. The Jeschkes, seen at right in the back row, recently hosted the moms for a tour of their grain farm and answered questions about biotechnology. (Photo by Cyndi Cook)
Through their eyes:
nology. Seed variety or engineered seeds allow farmers to be more efficient, save money otherwise spent on pesticides and herbicides, which in my opinion and the Jeschkes’ can be harmful, and create a more responsible way to ensure the success of the plant or crop. ... I am sure that I will still buy some organic items — tomatoes — but I also fully understand that I cannot avoid genetically modified foods and in fact have been consuming those foods for quite some time. I am also beginning to better understand the risks associated with organic products, especially produce. I like to follow the advice of everything in moderation, and think that advice can be applied to folks debating the use of GMOs. Becky Martinez, Glen Ellyn Before my visit to the Jeschke’s farm to explore corn and soybean farming, I never really considered the amount of scientific knowledge and the extent of formal education modern farmers had to have. While I regarded farming as an incredibly hard job, one that took lots of hands-on experience and apprenticeship, I had an antiquated vision in my head. ... Farming is truly a complex science. It requires an astute level of knowledge in chemistry, biology, meteorology and economics. ... Whatever one’s opinions are about GMOs, pesticides or the nutritional benefits or harm of crops, such as corn and soy, it’s undeniable that modern farmers are the ultimate scientists. They closely observe their fields and conditions and develop different modalities based on their analysis. As licensed professionals, they seek to better their craft through research and from experts. And as true scientists — their success is based on the quality of their results.
Field moms’ share views on stewardship, biotech Editor’s note: Field moms with Illinois Farm Families (IFF) toured the corn and soybean farm of Paul and Donna Jeschke near Mazon earlier this year. IFF is a coalition of commodity groups for beef, corn, pork, and soybeans, and the Illinois Farm Bureau. Below are excepts from the Chicago-area moms’ blogs that may be read online at {watchusgrow.org}.
Sharon Blau, Des Plaines Field corn can be found in corn flakes, cornmeal, feed for animals, and ethanol. Just like tomatoes, there are several varieties based on the needs of the farmer. Some seeds are better in sandy soil, while others are better suited for different moisture environments. Christa Grabske, Mount Prospect Farmers are stewards of the land, and they keep up with new technology to help provide food for all of us. Amy Bizzarri, Chicago As a city mom who encounters most of her food in the aisles of a grocery store, I have much to learn about how our food is planted and harvested. Here’s what I learned: Farming is hard work, and farmers are dedicated to their craft. It truly is a craft, and a job that permeates your entire life. ... High technology aptitude is a must for today’s farmers. Katie Grossart, Chicago I stood firm in my belief that mix-
Reader questions animal housing
Editor: The chicken-egg business is a disaster. The big factory style houses lock chickens in a tiny cage. It’s an inhumane practice, and the more you crowd the chickens the greater chance of disease. The big operators have driven most of the small operators out of
ing science with nature was the root of all the issues with the modern food chain. However, I was determined to get the other side of the story, though I didn’t think it would EVER change my mind. I wanted to hear it from the source, from the person responsible for growing “my” food. And what better way to do that than by sitting down face to face with a farmer who is honest in his use of modified seed, who is honest in his discussions. A farmer whose very livelihood depends upon the food I was terrified to eat. ... All of the farmers we spoke to, all the representatives from the seed companies and crop protection companies made certain we understood one VERY important fact, with one VERY important statement. WE EAT THIS FOOD TOO. We feed (it) to our families, to our children, to our grandchildren. We, too, want this food to be safe. Diane Letson, Chicago Touring the farm instilled in me an appreciation for the planning and continuous work that the Jeschkes do to ensure their land is kept safe and healthy. Paul Jeschke said early in the tour, “Part of our responsibility to the environment is to give the soil what it needs.” Give the soil what it needs … those words kept resonating with me especially when it comes to biotech-
LETTER TO THE EDITOR
business. Many farmers oppose unethical treatment of animals. Hogs, too, are kept too crowded and not given room to move around and socialize with other hogs. So-called modern farming is often hard on the animals because of overcrowding. There should be government regulations on many farmers. We shouldn’t
have big factory farms taking away our animals’ freedom to move around and enjoy life. What about disease in overcrowding? We pasture raise hogs and used to raise chickens, which we turned out in nice weather. I’ve been a Farm Bureau member since 1954. KEN SANDERSON, Leland
Letter policy
Samantha Schultz, Indian Head Park By 2050, our world’s population is expected to be up to 9 billion. At that rate, biotechnology can enable us to feed more of the world’s people as well as make better use of the farmland we have on the Earth. When a farmer decides whether to grow non-GMO or GMO crops, some of his choices depend on what the landlord of that particular acre wants. Natasha Nicholes, Chicago We visited the Jeschke farm ... and the husband and wife team were super gracious to us. I know that it must be pretty intense when having to discuss the use of GMOs in this day and age — and support the reasoning behind your choice. And believe me, the (Field) Moms didn’t leave ANY questions unasked. We wanted answers as to why SO MUCH of our produce today have GMOs. Some of us are secure in our choices, and some are still not convinced that this is the way that farming should be going. However, everyone who visited the farm walked out with respect for the way that the farmers presented their reasoning. Amina Nevels, Chicago I’m easy prey to fear mongering and after my latest farm visit with my fellow Mommas, I gotta say that I’m not so anti-GMO anymore ... I’ll qualify that statement. I’m not so anti-GMO when it comes to corn and soybeans ... animals are a different story. ... One comment by Farmer Jeschke really resonated with me. He stated that “[farmers] do not plant a seed because the seed seller is a nice guy ... We plant because we have a good yield. Their interests are aligned with the farmers; there is no trickery!” Talk about food for thought! Our local farmers are experts in their fields (pun intended). As consumers, at some point, there has to be a healthy sense of trust that farmers are working on our behalf to create a product that is nourishing and healthy for consumption, and that, furthermore, they would sound the alarm if something were awry. I, too, would like to believe that there is no trickery. After all, aren’t farmers eating their crops, too?
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