Farmweek july 21 2014 by Illinois Farm Bureau

Farmers should expect lower income this year given the outlook for record crops. page 4

IFB plans ‘waters of the U.S.’ sessions around the state Monday, July 21, 2014

BY DEANA STROISCH FarmWeek

Illinois Farm Bureau will hold eight meetings across the state next month to help farmers better understand the proposed rule defining “waters of the U.S.”

FarmWeekNow.com

Go to FarmWeekNow.com for more details of the eight “waters of the U.S.” statewide meetings.

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Lauren Lurkins, director of natural and environmental resources, and Adam Nielsen, director of national legislation and policy development, will provide an overview of the proposal and answer questions. “This is just another phase in our strategy to educate our membership about the impact this proposed rule would have on their individual operations,” Lurkins said. “We’ve been promoting our position through FarmWeek, the radio and a bunch of different avenues, but there’s nothing that can replace face-to-face discussion with our individual members.” The meetings will be held the week of Aug. 4. Most are open to all Farm Bureau members regardless of their county residence,

Tony Snow’s intensive grazing program enhances forage management for his dairy herd. page 9

U.S. House members passed a temporary road patch of $10.8 billion for the Highway Trust Fund. page 7

but seating could be limited. “We want our members to leave these meetings informed but also inspired to file their own comments, and be committed to the effort to turn back and defeat this rule,” Nielsen said. Scheduled meetings include: • Bureau/Lee: 8 a.m. Aug. 4. at Bureau County Farm Bureau, 535 Elm Place, Princeton. RSVP: Bureau County Farm Bureau at 815-875-6468 or bcfb@comcast.net, or to Lee County Farm Bureau at 815857-3531 or leecfb@comcast. net. • Champaign/Douglas/ Ford-Iroquois/Piatt: 8 a.m. Aug. 5 at Champaign County Farm Bureau, 801 N. Country Fair Dr., Champaign. RSVP: 217-352-5235 or ccfb@ccfarm bureau.com and indicate your county of residence. • Coles/Shelby: Noon Aug. 5. at Custom Smokehouse, 3020 Lake Land Blvd., Mattoon. RSVP: 217-774-2151 or shelbycofb@consolidated.net by Aug. 1. • Mason/Menard: 8 a.m. Aug. 8 at Mason County Farm Bureau, 127 S. High St., Havana. RSVP: 309-543-4451 or rdeuth@casscomm.com. • Pike/Scott/Adams: 6 p.m. Aug. 6 at Pike County Farm Bureau, 1301 E. Washington St., Pittsfield. A light supper will be served. RSVP: 217285-2233 or office@pikecfb.org. • Sangamon: 8 a.m. Aug. 6 at Sangamon County Farm Bureau, 2631 Beechler Ct., Springfield. RSVP: 217-7535200 or amason@sangamonfb. org. • Stephenson: Noon Aug. 4 at Stephenson County Farm Bureau, 210 W. Spring St., Freeport. RSVP: 815-232-3186. • Will/Cook/DuPage/ Kendall: Noon Aug. 7 at Will County Farm Bureau, 100 Manhattan Road, Joliet. RSVP: 815727-4811 or wcfb@willcfb.com.

PANEL OF JUDGES

Two sections Volume 42, No. 29

Mercer County fairgoers share showring opinions during the beef show last week. County fair season gets into full swing this month as exhibitors qualify for the upcoming Illinois State Fair Aug. 7-17. Check out more Mercer County Fair photos on page 8. (Photo by Ken Kashian)

Illinois taps into renewable energy sources BY KAY SHIPMAN AND DEANA STROISCH FarmWeek

Renewable energy provides power and jobs in Illinois, although some renewable industries are more developed than others. Last week, the first Illinois Renewable Energy Conference offered information about policy, technology and projects related to biomass, geothermal, solar and wind energy. The conference at Illinois State University (ISU), Normal, attracted more than 250 participants from several states. “It creates a greater synergy by having them all together because there is certainly overlap between wind, solar, biomass and geothermal,” said David Loomis, head of ISU’s Renewable Energy Center. Despite development of wind and biofuels, Illinois continues to rely heavily on other sources for its power. In 2012, the state obtained 49 percent

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of its power from nuclear plants, 41 percent from coalfired power plants, 6 percent from natural gas and about 4 percent from wind. The summaries below offer a “state of the state” of four renewable energy sources in Illinois. Biomass Corn ethanol, fats and oils, and biodiesel remain Illinois’ largest established bioenergy industry, according to Fred Iutzi of Western Illinois University’s Illinois Institute for Rural Affairs. More than 200 corn ethanol plants operate across the country, and combined, have more than 20 billion gallons of storage capacity. Illinois has 13 operational plants, he said. “Explosive growth” in the corn ethanol industry occurred between 2005 and 2011, but has since tapered off, Iutzi said. Other highlights include: • Six soy biodiesel plants

operate in Illinois. Each converted to multiple feedstocks. • Major categories of feedstock in Illinois include woody biomass, dedicated energy crops and crop residues (primarily corn stover). • Three cellulosic plants are in the final stages of construction in nearby states — two in Iowa and one in Kansas. • The Midwest has been slow to develop the biomass power sector, which is more active in areas of the country where timber and paper industries are prevalent, Iuzi said. In 2008-09, 120 megawatts of biomass power were in the development pipeline. “But then natural gas prices collapsed and the picture for that changed quite a bit,” Iutzi said. “Biomass power is a baseload renewable,” he said. “So in my opinion, it’s not a question of if the market will demand that, but when.” See Renewable, page 3

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

Quick Takes

FarmWeek • Page 2 • Monday, July 21, 2014

NO REFERENDUM VOTE ON SOY CHECKOFF — U.S. soybean farmers showed continued strong support for their checkoff. Farmers filed only 355 referendum request forms to USDA. Only 324 of the forms proved valid. The forms represented .06 percent of all eligible U.S. soybean farmers. That falls short of the 10 percent needed to prompt a referendum. “These results show that U.S. soybean farmers overwhelmingly see the value in our soy checkoff,” said Jim Call, Minnesota soybean farmer and United Soybean Board (USB) chairman. “It’s more important than ever that the volunteer farmer-leaders of USB continue to invest soy checkoff funds to maximize the profit potential for all U.S. soybean farmers.” USDA conducts the request-for-referendum vote every five years as required by the Soybean Promotion, Research and Consumer Information Act.

TAYLOR RE-ELECTED TO CORN BOARD — Paul Taylor of Esmond has been re-elected to the National Corn Growers Association’s (NCGA) Corn Board. The DeKalb County farmer serves on NCGA’s association relations committee and a representative to 25x’25. Taylor has served as vice chair of the NCGA ethanol committee and as president of the Illinois Corn Growers Association and Wisconsin Soybean Association. Taylor farms land which has been in his family for nearly 100 years. He raises corn, seed corn, food-grade non-GMO soybeans and canning vegetables. NCGA Corn Board members represent the organization on all matters, while directing policy and supervising day-to-day operations.

NEW EMS VIDEO SEEKS RECRUITS — In the last two years, the Illinois Emergency Medical Services (EMS) workforce decreased by 19 percent, according to the Illinois Department of Public Health. Members of the State EMS Advisory Council plan to change those statistics. McLean County Area EMS System created a recruitment video. It includes a compelling story of a young child who suffered cardiac arrest in a rural area. The child survived thanks to prompt attention from EMS providers. Greg Scott, McLean County Area EMS System director, said plans include making public service announcements from short video clips. To view the video, go to {youtube.com/watch?v=I whiA0_sXQ8&feature=youtu.be}.

AMERICANS QUESTION COLLEGE VALUE — Colleges and universities continue to have to prove their worth as just 48 percent of Americans say college remains a good financial investment. The latest COUNTRY Financial Security Index survey showed fewer Americans value a college education for the sixth consecutive year. In 2008, 81 percent said they valued a college education. Post-grad job difficulties may be to blame. Seventy-eight percent of Americans said it’s harder for today’s college graduates to find employment than past generations. This could be attributed to a “skills gap” as Americans are more likely to say finding a job comparable to their skills, or not having the skills to match what employers need, are the biggest obstacles for today’s college graduates (44 percent).

(ISSN0197-6680) Vol. 42 No. 29 July 21, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2014 Illinois Agricultural Association

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

Illinois Farm Bureau President Rich Guebert Jr., right, and Wisconsin Farm Bureau President Jim Holte listen to a presentation during the American Farm Bureau Federation (AFBF) Council of State Presidents meeting in Washington, D.C., last week. Guebert also shared “waters of the U.S.” concerns with members of the Illinois congressional delegation. (Photo courtesy of Leah Willger, AFBF)

IFB president travels to Washington Illinois Farm Bureau President Rich Guebert Jr. traveled to Washington, D.C., last week, sharing concerns about the proposed rule governing “waters of the U.S.” with members of Illinois’ congressional delegation. He also invited legislators to visit Illinois farms during their August recess. “We could really show them how the Environmental Protection Agency’s (EPA) new rule would affect a farmer on his own farm and show them some examples,” he said. Meanwhile, back in Illinois, hundreds of members called the White House to tell President Barack Obama to “ditch the rule.” IFB issued an action request last week. Guebert met with a half

dozen legislators, including: Reps. Tammy Duckworth, DHoffman Estates; Bill Enyart, D-Belleville; Randy Hultgren, R-Winfield; Robin Kelly, DMatteson; Adam Kinzinger, RManteno; and Aaron Schock, RPeoria. He also met with staff from the offices of Sen. Dick Durbin, D-Springfield; and Reps. Rodney Davis, R-Taylorville; Bill Foster, DNaperville; and Dan Lipinski, D-Chicago. In addition to “waters of the U.S.,” Guebert said he discussed IFB priority issues with legislators, including cash accounting and Section 179. Guebert said he learned Senate action on Section 179 probably won’t happen until after the November election. Guebert also attended the American Farm Bureau Federa-

tion Council of State Presidents meeting during his trip. He said the group heard reports on topics ranging from genetically-modified organisms (GMOs) to Big Data. Krysta Harden, deputy secretary of agriculture, also updated participants on implementation of the 2014 farm bill. Guebert said Harden encouraged members to make sure their conservation plans are up to date, and they are in compliance. The farm bill requires farmers who have crop insurance to apply conservation methods to their fields.

The Environmental Protection Agency’s (EPA) “waters of the U.S.” proposal opened a floodgate in the U.S. House. Last week, Rep. Steve Southerland, R-Fla., succeeded in getting House Transportation and Infrastructure Committee approval for a bill halting EPA action. HR 5078 would invalidate EPA’s proposal and halt Army Corps of Engineers action to redefine “waters of the U.S.” Southerland’s bill comes on the heels of two similar bills. His bill incorporates language previously introduced by Rep. Reid Ribble, R-Wis. In addition, Rep. Sam Graves, R-Mo., introduced HR 5034 earlier this month, which goes a step beyond Southerland’s bill in stopping every regulation being developed by EPA. Graves’ bill would also require a review of all existing rules. A group of 30 Republican Senators crafted a bill in June to

stop EPA action on the proposed rule. Meanwhile, American Farm Bureau Federation released a comprehensive document to Congress in response to numerous inaccurate and misleading comments made about EPA’s clean water rule. Nancy Stoner, EPA acting assistant administrator for water, said the proposed rule narrows the EPA’s authority by adhering to 2001 and 2006 Supreme Court opinions on the matter. She noted in a recent agency blog post that the proposed rule does not include waters that have not historically been covered under the Clean Water Act. AFBF’s document explains — with specific citations to the proposed rule and other authorities — how the rule would give EPA broad Clean Water Act jurisdiction over dry land features and farming practices long declared off-

limits by Congress and the nation’s highest court. “AFBF and several state Farm Bureaus have met with the EPA repeatedly, and each time agency officials have declined to grapple with the serious, real world implications of the rule,” AFBF President Bob Stallman said. “EPA is now engaged in an intensive public relations campaign, and we believe its statements are directly contrary to the reality of the proposed rule. “We have therefore decided to take our arguments to a wider audience as well. Farm Bureau is dedicated to communicating to farmers, their elected representatives and the public how the proposed rule will impose costly and time-intensive federal permitting regimes on commonplace and essential practices that our nation’s farmers and ranchers depend on. It’s time for the agency to ditch this rule and start over.”

BY DEANA STROISCH FarmWeek

FarmWeekNow.com

For more information about IFB President Rich Guebert’s trip to Washington, D.C., go to FarmWeekNow.com.

Opposition to EPA proposal increases

Ag impact agreements may protect landowners with wind farm projects

BY KAY SHIPMAN FarmWeek

Landowner protection drives an effort to develop agriculture impact mitigation agreements related to commercial wind energy development in the state. Illinois Farm Bureau, the Illinois Department of Agriculture (IDOA) and the wind industry have discussed the potential of such agreements providing additional protections for landowners, especially those in counties that lack wind development ordinances, according to Bill Bodine, IFB associate director of state legislation. “Progress has been made, but no agreement has been reached,” Bodine said. “If an agreement can be reached, this will provide protections and address some issues our members have with construction and land restoration related to wind farm development.” Wind farm policy was discussed during the Illinois Renewable Energy Conference last week at Illinois

State University, Normal. The discussed agreement process would work similar to that used for electric transmission lines and pipelines. A wind farm developer and IDOA would agree to certain practices and standards, and sign an agreement stipulating them. IDOA would assure the developer would implement those practices and provide oversight, Bodine noted. Points stipulated in a mitigation agreement may include restoration of land after construction and deconstruction of turbines, decommissioning and financial surety of decommissioning. The agreement could be required before project construction begins. Jeff Reinkemeyer, director of eastern development for Iberdrola Renewables, said wind farm developers are being encouraged to start incorporating mitigation standards into future projects. Bodine noted the need for more work among stakeholders before final issues with the ag mitigation agree ments are addressed.

Crude oil pipeline proposal surfaces in central Illinois

Landowners advised against survey access BY KAY SHIPMAN FarmWeek

Some western Illinois landowners received information last week from a Texas energy company that proposes to construct a crude oil pipeline from North Dakota to Pakota, Ill. Energy Transfer Partners proposes to build the 1,100mile pipeline, named Dakota Access, to transport crude oil from Bakken, N.D., to Pakota and connect with the company’s existing 30-inch pipeline. “This project has not been approved and there is no reason any landowner should grant land agents access to surLaura Harmon vey their land with crops in the field,” advised Laura Harmon, Illinois Farm Bureau attorney. If a landowner wants to grant that access, he or she should revise the survey

access form to limit the scope and timing of the right to survey and improve provisions for crop damage compensation, Harmon added. The proposed project would cut diagonally across North and South Dakota, Iowa and Illinois. From Pakota, the crude oil would move through an existing pipeline to Nederland, Texas. In a press release, Energy Transfer stated it expects to build and operate the pipeline by the end of 2016. Energy Transfer also announced plans to develop a rail terminal facility in Illinois to access East Coast refineries. Energy Transfer hasn’t started the regulatory approval process in any states along the proposed route, Harmon said. IFB will be monitoring the regulatory process related to this project and will provide updates to county Farm Bureau managers along the proposed route. For more information, visit {http://ir.energytransfer.com/ phoenix.zhtml?c=106094&p=i rol-newsArticle&ID=1942689}.

Page 3 • Monday, July 21, 2014 • FarmWeek

Eastern Illinois University installed solar panels as part of its renewable energy sources in Charleston. (FarmWeek file photo)

Renewable

Continued from page 1 Wind energy Illinois continues to rank fourth nationally for megawatts of wind energy installed; however, “several states are right behind us,” Loomis reported. Wind energy installations increased in 2012, but stalled last year, he noted. The state boasts diverse wind farm developers. McLean County supports the largest number of wind energy farms as well as the single largest wind energy farm in the state. Illinois wind energy will power Microsoft’s Chicago data center after the San Diegocompany announced a 20-year deal last week. Microsoft Corp. will buy wind-generated power from a U.S. unit of French utility Electricite de France. EDF Renewable Energy bought a 96 per-

cent stake in the Pilot Hill Wind Project, formerly known as K4 Wind Farm, being constructed in Ford, Iroquois and Kankakee counties. Geothermal Geothermal moves energy from one place to another and works in conjunction with other energy, according to John Freitag of the Geothermal Alliance of Illinois. Freitag described the renewable sector as being in its infancy in the state. The technology pumps fluid through the earth in the summer to remove heat from and cool buildings, and reverses the process in the winter to heat buildings. “We’re starting to see more geothermal heat pump technology in schools,” Freitag said. The single system provides heating and cooling, and typically offers low-cost maintenance.

Solar Solar holds potential for economic development in Illinois. Currently, the state ranks 24th for installed solar photovoltaic capacity. Four utility-scale solar farms are operating near Chicago, Rockford, Streator and Winchester. Currently, Illinois offers financial incentives for solar energy development through the Renewable Energy Resouce Program; however, the law authorizing that program will expire Dec. 15, 2015. In the last three years, Illinois invested in several solar energy projects, including the high-profile solar panels installed on Chicago’s Shedd Aquarium roof, according to Melville Nickerson, deputy director with the Illinois Energy and Recycling Office.

Illinois Pollution Control Board regulates noise standards The Illinois Pollution Control Board has authority over the state’s noise standards, attendees learned at last week’s Illinois Renewable Energy Conference at Illinois State University, Normal. Several questions about wind turbine noise and noise standards were submitted in several con-

ference sessions. Illinois has noise pollution standards for both day and night. For information on state environmental regulations, visit {ipcb.state.il.us/SLR/ PCBandIEPAEnvironmentalRegulations Title35.aspx}.

Illinois electric co-ops expanding renewable energy

BY KAY SHIPMAN FarmWeek

Illinois electric cooperatives continue plugging their customers and rural economies into more renewable energy. In May, the state’s first cooperative-operated, utility-scale solar plant started generating power near Winchester in Scott County. The Illinois Rural Electric Cooperative, which serves 7,800 customers in west central Illinois, built a 4-acre solar plant with 2,223 solar panels near an existing substation. At full capacity, the solar plant will generate enough electricity for about 170 homes. “Small utilities and others like us can do this,” said Sean Middleton, the co-op’s manager of engineering. Middleton spoke during last week’s Illinois Renewable Energy Conference in Normal. The co-op defrayed the project costs with an Illinois Department of Commerce and Economic Development renewable energy business development program grant and a USDA rural energy for America program grant, Middleton noted. The solar project generated an outpouring of community support and few public concerns. “The public really cherishes something like this,” Middleton said. In Illinois, co-ops also assist with renewable energy economic development. Last week, Lillian Salerno, USDA Rural

Development administrator for rural businesscooperative service, recognized the work of Corn Belt Energy Corp., based in Bloomington. Salerno and Colleen Callahan, Rural Development’s Illinois director, presented co-op officials a symbolic check that includes nearly $4 million in Rural Economic Development Loans. Through two separate projects with Patriot Renewable Fuels and Patriot Biodiesel, the USDA funding will help create 10 jobs in Annawan. “Renewable energy, biofuels and biobased products represent growth for the entire economy and a strong future for our rural communities,” Callahan said. The state’s farms provide a foundation for growing the bioeconomy and renewable energy, according to Callahan. “Working with rural cooperatives, such as Corn Belt Energy, is a key mechanism for Rural Development to support that growth,” she said. Patriot Renewable fuels will use nearly $1.8 million to buy equipment for the ethanol plant, increasing production an estimated 2 to 3 percent. Patriot Biodiesel will use $2 million to buy equipment for a new 4-million-gallon-peryear biodiesel facility. To date in fiscal year 2014, Illinois Rural Development has awarded $7.8 million in rural economic development loans and grants to four cooperatives for six projects.

Market action reflects expectations of monster crops FarmWeek • Page 4 • Monday, July 21, 2014

BY DANIEL GRANT FarmWeek

The U.S. corn and soybean crops have a long way to go before farmers realize actual yields. About one-third (34 percent) of the corn crop had silked and 41 percent of beans had bloomed nationwide as of the first of last week. But bearish market action in

recent weeks suggests many traders already penciled in record-large crops for the upcoming harvest, according to Chris Hurt, Purdue University Extension economist. “We have above-average yield potential getting priced into the marketplace,” Hurt said last week at the Purdue Top Farmer Conference in West Lafayette, Ind. “I think

the market clearly is trading a 170 (bushels per acre) plus (corn) crop.” Hurt currently budgets for national yields as high as 172 bushels per acre for corn and about 46 bushels for beans, up from USDA’s estimates earlier this month of 165.3 bushels for corn and 45.2 bushels for beans. The optimistic production

‘PICTURE PERFECT CORN’ FLOODED

Chris Karr of Seymour stands in a flooded road next to his Piatt County cornfield. Karr has measured 7 to 8 inches of rain in his gauge since July 12. Recent heavy rainfall sent the nearby Sangamon River out of its banks. Karr noted the cornfield was in “picture perfect condition” prior to the recent flooding. (Photo by Ken Kashian)

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outlook comes from the fact that crop ratings last week were among some of the best in recent history. And good growing conditions could continue based on a rather benign weather forecast at many locations. “We have great weather for pollination,” Hurt said. “Given Chris Hurt the quality of this crop, we’re talking a big crop that’s getting bigger by the day.” Crop conditions the first of last week rated 77 percent good to excellent, 19 percent fair and 5 percent poor or very poor for corn, and 72 percent good to excellent, 22 percent fair and 6 percent poor or very poor for beans. That’s much improved from last year when 66 percent of corn and 65 percent of beans were rated good to excellent on the same date. In fact, crop ratings as of last week were the second best for corn and third best for beans on record for mid-July since 1990. If the size of this year’s

crops grow from the current USDA estimates until harvest, Hurt believes prices this fall could sink below $3.50 for corn and $10 for beans. “I think we’ve got vulnerability to the downside,” he said. University of Illinois estimates recently suggested corn in the low-$4 range this year could sink farm income slightly below the 1996-2005 average. Lower farm income could occur due to lower crop prices along with a decline in crop insurance payments. The 2014 projected prices of $4.62 for corn and $11.36 for beans are well below last year’s prices of $5.65 for corn and $12.87 for beans. Hurt believes the lowest average prices the next couple years could occur this fall followed by a slight rebound in 2015 and 2016. “Production has caught up with demand,” Hurt said. “This feels to me like a boom moderation cycle, not a bust (that occurred in the early 1980s),” he continued. “The difference is I expect demand will remain strong.” World crop inventories this year could be the largest since 2002-03 for corn and since 2000 for beans, Hurt added.

U of I report: Agricultural banks boast strong financial health

Commercial banks lending to agriculture occupy a strong position to meet the capital needs of farmers. That’s the latest findings from a University of Illinois farmdoc report. Paul Ellinger, head of the U of I agricultural and consumer economics department, conducted an agricultural bank financial health study as the sixth anniversary of the nation’s economic meltdown approaches. Main Street banks incurred losses and liquidity problems during the financial crisis. However, Ellinger noted many ag banks did not participate aggressively in the high-risk housing or commercial real estate markets. Profitability of agriculture during the last decade also helped mitigate nonfarm real estate losses for banks lending to agriculture. The report noted an increase in regulatory compliance costs impacts the profitability of banks. Typically, as a share of total operating costs, these compliance costs are greater for smaller banks. Pressure continues to merge institutions and gain potential cost economies and synergies. The study found banks with assets of less than $100 million exhibited the largest decrease in number of banks (2,502 to 1,685) as well as largest share decline (17 percent to 10 percent). These changes are a combined result of mergers as well as asset growth of banks. Although agricultural loans at commercial banks increased 30 percent from 2007 to 2013, overall loan balances relative to bank deposits remain at the lowest level in the banking sector in 30 years. The declines signal weak loan and economic growth in the country. Agricultural bank profitability has recovered from 2010 to 2013 across all size groups, the report noted. However, smaller banks tend to trail the profitability of larger banks. The bottom line for ag banks shows strong financial health and a solid base. But new challenges and headwinds remain, Ellinger said. New regulations will add to compliance costs. Tighter profit margins for farmers combined with volatile commodity prices increase risks faced by borrowers. Futhermore, interest rate risk may increase in the next 18 months. Banks will need to continue to implement prudent risk-management strategies, monitor economic conditions and explore new opportunities to enhance competitiveness and viability, Ellinger concluded.

Don’t expect much relief from high input costs

Farm margins tighten

Page 5 • Monday, July 21, 2014 • FarmWeek

encouraged to consult with their landlords about the drastic changes to the economic picture. But they shouldn’t expect a huge adjustment. “How fast can input costs change in reaction to lower prices?” Langemeier said. “The change in input costs typically is much smaller (than moves in the crop markets).” For example, changes in input costs moved as much as 10 percent just twice in the last 40 years. “Even a 5 percent drop is big for input prices,” Langemeier noted. “They’re not going to drop 50 percent like corn.” At least some changes in cash rental rates should occur,

Illinois soybean growers could have an advantage over their Iowa counterparts when it comes to producing the most bushels nationwide this year. Planting conditions for double-crop beans were ideal after wheat harvest and most bean stands are off to a good start in southern Illinois, according to Don Guinnip, a farmer from Marshall (Clark County) and production committee chairman for the Illinois Soybean Association (ISA). “Double-crop beans in the Wabash Valley area really went in nice,” Guinnip said last week at ISA’s media day in Bloomington. “It went into perfect moisture and most were up within three Donald Guinnip to four days.” Illinois farmers last year produced the most soybeans (460.6 million bushels compared to 411 million bushels in Iowa) of any state in the nation. It could be a close race for the top production spot again this year. USDA recently pegged the number of harvested bean acres this season at 10.05 million in Illinois and 10.04 million in Iowa. Illinois farmers overall planted an estimated 10.1 million acres of beans prior to much of the success with double-cropping in recent weeks. “That 10.1 million acres (of beans in Illinois) might grow,” Guinnip said. “We got (double-crop beans) in in a timely manner, and we got

good stands.” Concern in previous weeks surfaced regarding the timing of double-crop planting as many wheat growers struggled to harvest that crop. But wheat harvest as of the first of last week was 90 percent complete statewide — on pace with the five-year average of 91 percent. ISA set a goal of producing and using 600 million bushels of Illinois soybeans annually by 2020. Yields would need to increase to about 60 to 65 bushels per acre to accomplish that goal on current acreage. Farmers need technology to achieve the production goal and improved infrastructure to move larger crops to market, according to Linda Kull, ISA director of strategic research programs. “You can produce a lot more, but you have to be able to move that crop to market,” Kull said. “Illinois has some fantastic infrastructure, but there’s room for improvement.” Improving the quality of the bean crop also must accompany yield enhancements, or it could be tougher to sell the extra bushels to some markets. “We sell bushels, but the market buys protein and oil,” Kull said. “It’s important that, as the yield increases, so does quality.” Development of the soy crop slowed in recent weeks by heavy rains and belowaverage temperatures at some locations. “Our soybeans are later than normal. We’ve had much more than normal rain in the last month,” said Paul Rasmussen, an ISA director from Genoa (DeKalb Coun-

ty). “But, for the most part, our crops look good.” Guinnip advised fellow bean producers to be on the lookout for sudden death syndrome as recent weather conditions have been conducive for the yield-robbing disease. — Daniel Grant

Illinois soy growers strive to remain national leaders in production

Farm returns projected to decline (Operator, land returns and average cash rents, central Illinois farmland with high-productivity)

700 600 500

$ per acre

In a matter of weeks, farmers saw their margins tighten considerably as crop prices plunged to new lows for the year. But they shouldn’t hold their collective breath waiting for relief on the input cost side of the ledger. Michael Langemeier, associate director of the Purdue University Mike Langemeier Center for Commercial Agriculture, last week predicted input costs

likely will hold steady the next two to three years. “Earnings look downright ugly this year,” said Langemeier, who didn’t mince words about the situation last week at Purdue’s Top Farmer Conference. “But we don’t see a large drop in input prices.” The University of Illinois this month projected operator and land returns could average just $245 per acre for corn and $241 for beans this year. If realized, returns would be well below the average cash rental rate of $295 per acre and well below last year’s average returns of $384 per acre for corn and $429 for beans. Farmers, in response, were

BY DANIEL GRANT FarmWeek

400 300 200 100 0

2000

2002

Corn

2004

2006

Soybeans

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though. Langemeier evaluated net returns to land and cash rents and concluded that every $100 change in net returns results in a change of just $10 for the cash rental rate. On the bright side, input costs are expected to moderate after averaging an annual increase of about 6 percent during the last decade. “We’ve seen a very large increase in input costs the last 10 years,” Langemeier said. “I expect (costs) will be more flat, with the exception of rents, which I think will adjust.” The drop in crop prices also

2008

Avg. cash rent

2010

2012

2014* 2015* * estimate

Source: University of Illinois

could lead to a moderation of land prices. It also put the brakes on farm machinery sales. “I think these could be pretty tough times for machinery manufacturers,” Langemeier said. Sales of large farm equipment declined considerably from June 2013 to June 2014. Sales of four-wheel drive tractors during that time declined 22.3 percent, sales of 100-plus horsepower tractors dipped 19.3 percent and combine sales were off last year’s pace by 23.9 percent, according to the Association of Equipment Manufacturers.

FarmWeek • Page 6 • Monday, July 21, 2014 Bernie Walsh, Durand, Winnebago County: Cooler than normal temperatures have been the main topic of discussion. The high on Tuesday was only 64. Most of the cornfields are pollinating right now, so this cool weather has probably come at the right time. The corn continues to look very good, but the soybeans were probably hurt more by the excess rain and wet ground for most of the month of June. They are finally turning a darker green, but are very uneven where the ground stayed wet for so long. I still don’t have a wheat harvest report, but I’m sure I will have next week. Stay safe. Pete Tekampe, Grayslake, Lake County: A cool week in Lake County. I got all my first-cutting hay baled without any rain. I cut a third of my second cutting on Tuesday because they said we had a four-day window without rain. We got .5 of an inch of rain Tuesday night. Most of the early corn is earing out and looking good. Late corn is just starting to tassel and has some yellow spots in the low ground from too much moisture. Beans are starting to look greener with the drier weather. Wheat is turning fast and will probably be ready this week. Lake County Fair is July 23-27. Hope to see you all at the fair. Leroy Getz, Savanna, Carroll County: Rain for the week – 2.3 inches. A wild storm on Saturday evening (July 12) dumped 2 inches of rain in 20 minutes with tornadic winds dropping trees and power lines once again. Our car was one of those that was under trees at the Timberlake Playhouse, but we only had minor damage compared to the car two stalls away that was flattened by a 2 ½ foot tree. Corn and beans are looking good with no insect problems. The record cool days have helped with pollination. Potatoes and green beans have been harvested. Rye straw that has been baled has been unusually heavy. Ryan Frieders, Waterman, DeKalb County: Cool temperatures settled into the area last week. We received an inch of rain, which has helped crop development. Soybeans have been sprayed with fungicide to protect plant health. Corn is tasseling and will also be sprayed. Larry Hummel, Dixon, Lee County: Just last week, I mentioned how the soybeans had started to green up after saturated soils had finally started to dry up, but last week’s storms were enough to push them right back to where they were two weeks ago. Anywhere from 1.5 to 2.5 inches of rain and high winds blanketed the area. Just northeast of Dixon, a relatively small area had a lot of damage with trees down, One of our fields in its path had a lot of green snap. A large portion of this year’s corn crop is uneven in maturity. Some of the first tassels showed up a week ago, and areas in the same field are just now getting close to pushing the tassel out. Unseasonable cool temperatures did not help the plants mature quickly either. Ken Reinhardt, Seaton, Mercer County: Rain amounts were spotty from Saturday night’s storm (July 12). A small tornado travelled through the eastern part of the county, damaging mostly trees and corn. The Mississippi River will finally be below flood stage over the weekend. The elevator at Keithsburg may reopen midweek. Seep water from the Mississippi and flooding on the Edwards River will leave some ground barren for this growing season. Ron Moore, Roseville, Warren County: We did not receive any rain last week, so it was a good week for making hay. Our second crop got baled and stored with no rain. The corn is now done pollinating and filling kernels. Soybeans are still flowering and setting pods. A few Japanese beetles are showing up, but not enough to be a problem yet. We will continue to scout for other insects. The weather has been cooler than normal, so we will need some more heat units to finish the crop.

Jacob Streitmatter, Princeville, Peoria County: Drier, cooler weather moved into the area. The corn crop is close to full pollination, and the soybeans are close to R3. It is amazing how much the corn plant was able to stand back up. Two weeks made a huge difference. Ron Haase, Gilman, Iroquois County: We received a range of 2.55 to 3.6 inches of rain July 12-14. On July 16, we started spraying fungicide and insecticide on our soybean fields. We will finish that today and start joining those that are spraying their corn with fungicide. Most corn in the area has been pollinating or has finished during this week. The range in soybean development in the local area is between the R1 growth stage, beginning bloom, and the R3 growth stage, which is beginning pod. Most soybean fields are in the R2, or full bloom stage. The local closing prices for July 17 were nearby corn, $3.63; new-crop corn, $3.52; nearby soybeans, $12.40; new-crop soybeans, $10.62. This is fair week here in Iroquois County. Brian Schaumburg, Chenoa, McLean County: We received 3 to 6 inches of rain last week, and it is amazing how well the crops withstood the deluge. Corn is now pollinating under nearly ideal conditions, and we have flown on fungicides on some fields. Soybeans are also faring well despite wet feet. Markets took a punch to the gut once again as crop conditions go from the ridiculous to the sublime. The 2015 markets bear a close watch. Corn, $3.74, $3.61 new; soybeans, $12.42, $10.59 new; wheat, $5.15. Steve Ayers, Champaign, Champaign County: The big flood came Saturday (July 12) with heavy rain on a diagonal line from Mahomet through Champaign-Urbana and onto the Philo area. Lake of the Woods at Mahomet had 7 inches; Champaign, 5.5 inches; and Philo, 4.61 inches. Monday afternoon saw another .4 of an inch. Then a delightful week with moderate temperatures — perfect for corn pollination. Farmers are busy mowing, baling, spraying and attending the Champaign County Fair.

Carrie Winkelmann, Tallula, Menard County: We harvested rye on the Fourth of July, and it made around 70 bushels per acre. Cleaned it with the antique clipper mill to get it ready for fall planting, and it was not as much fun as one would think. Corn has had a very successful pollination, and many fields are in the brown silk stage. Soybeans have reached R4 much quicker than expected and fungicide applications have started. The planes are flying all around. Very low insect pressure as a whole. Got a wonderful harvest off the apricot tree. My popcorn in the garden looks good, and Kyle has several big pumpkins setting on his giant pumpkin plants. Tom Ritter, Blue Mound, Macon County: Since the last report, we had another 2.3 inches of rain in two events. We are at adequate moisture, and the dry weather is probably going to help things more than hurt them. Temperatures have been ideal for work. Lows have been in the low 70s, but I’m sure corn will be happy as we head back up to the 80- to 85-degree weather. Pollination is pretty well complete. The only field activity we are seeing is spraying of fungicides on corn. Soybeans are also looking good. In fact, they are probably enjoying the drier weather more than the corn. We have enough moisture to get us well into the month of August, and we may have enough moisture to complete a bumper crop on corn. Jimmy Ayers, New City, Sangamon County: We didn’t receive any rain last week. It was a very cool week with quite a bit of sunshine. We managed to set record lows on Wednesday. The biggest project is probably still some mowing going on, but grass has slowed up. Hay baling got a pretty good boost this week. We got our double-crop beans finished up as well as the wheat. Ended up with some vomitoxin even after being sprayed with fungicide three times. Can’t quite figure that program out. Corn and beans still look pretty good. Weeds starting to peek through on some of the bean fields. David Schaal, St. Peter, Fayette County: Things still looking good in our neck of the woods, especially after an inch of rain Monday. There have been some helicopters in the area spraying fungicide on corn. Farmers are mowing roadsides, cleaning out grain bins, and starting to prepare equipment and grain bins for the upcoming harvest. Have a good week.

Wilfred Dittmer, Quincy, Adams County: From the windshield, I think the crops around here probably look better than I have ever seen and have the potential to produce a good crop given some more rain. But as I said before, it’s not in the bin yet. Our gauge picked up .6 of an inch of rain last Sunday (July 13). Most of wheat has been harvested and straw baled, so I guess it is time to take in the local fair and chemical rep field days. Have a safe week.

Dan Meinhart, Montrose, Jasper County: Showers moved through the area the weekend of July 12-13, leaving .5 of an inch to 3 inches. Some people are still in desperate need of rain. Overall, the crops are looking good. Temperatures the last few days were below normal, making it very pleasant to work outside. Farmers are busy hauling grain, applying fungicides by air and ground, spraying herbicides on late-planted beans, mowing ditches and waterways, and baling hay. Warmer weather is expected to return soon.

Todd Easton, Charleston, Coles County: Well, to coin a popular phrase, the cornfields seem to be “happy, happy, happy” as corn plants find themselves in or around the R2 blister stage. Last weekend’s rains materialized to at least an inch across the whole area, and we received another surprise half inch on Monday. Several comments are being made by people who have been around for a while that they can’t recall a better looking corn crop. On the other side of the fence row, it is still evident that these cool, ideal conditions for the corn crop aren’t exactly what the beans want. Soybeans have been slow to grow to normal height in wider rows and are having trouble closing up. With that said, they are developing on schedule with most fields in the R2 to R3 stages, which is the beginning of pod set. There seems to be plenty of places on the short bean plants for a good pod to hang. Potential is still there, but it is riding on what happens in the next month. After attending the Soybean College event sponsored by the Illinois Soybean Association, this phenomenon seems to be widespread across the state, and there is not much to be done about it.

Dave Hankammer, Millstadt, St. Clair County: Temperatures this past week have been unusually cool for the month of July with the nighttime lows in the low- to mid-60s and daytime highs touching 80, which made comfortable conditions for most activities. We had a couple of showers early in the week, which left .4 of an inch of rain. Other reports of rainfall around the county varied up to 1 inch, and counties to the south claimed up to 4 inches. The crops in the field continue to look good with first-crop soybeans reaching knee height, full of blooms and setting pods. Most of the corn crop has finished pollinating with a few fields just starting to pollinate. The concern farmers have now is the effect cool temps may have on the crops as it develops and matures. Double-cropped soybean plants can be seen down the row through the wheat stubble with most fields having adequate populations. Most of this crop has reached three weeks of growth, and farmers are scouting these fields for weed pressure. The most field activity I’ve seen this week is hay making, and mowing waterways and field edges. Local grain bids are corn, $3.93; soybeans, $12.30; wheat, $4.96. Have a safe week.

Page 7 • Monday, July 21, 2014 • FarmWeek Dean Shields, Murphysboro, Jackson County: Weather was no problem last week. Things are winding down. Corn pollinating is good because of the cool weather. Most soybeans are laid by. Wheat harvest is over and double crop is done. We still have to pump water to keep the low land dry. Beans planted in the low ground are small. A lot of farmers are taking a vacation now.

Rick Corners, Centralia, Jefferson County: We had a nice .6 of an inch shower Monday (July 14). Some areas had around 2-plus inches. Tassel or tossel, tomata or tomato, however you say it, a lot of the corn is in full swing. Some of the beans have finally kicked in and are growing, although some still can’t overcome the herbicides and get going. The wheat crop – no comment. Kevin Raber, Browns, Wabash County: Rainfall amounts of around 1.25 inches fell this past week. The cooler temps and rain have kept the crops looking good. The corn seems to be enjoying this cooler weather. It seems to me that the beans don’t seem to be growing as quickly in these cool days and nights.

Randy Anderson, Galatia, Saline County: Great week for the temps and being at the fair, but some people are worr ying about not getting enough heat units. Post spraying of beans and hauling wheat are the jobs of the week. Hope to see you at the Saline County Fair this week.

House passes Highway Trust Fund extension BY DEANA STROISCH FarmWeek

The U.S. House of Representatives last week passed a temporary fix for the Highway Trust Fund, approving money for surface transportation projects through May 2015. The vote was 367-55 to pass HR 5021, the Highway and Transportation Funding Act of 2014. The bill provides $10.8 billion in funding for transportation projects — $9.8 billion of which will come from the general fund by changing pension contributions and increasing custom fees. The remaining $1 billion will come from the Leaking Underground Storage Tank Trust Fund. Rep. Cheri Bustos, D-East Moline, said the “bipartisan extension of the Highway Trust Fund will safeguard transportation projects and improve our infrastructure across the country, while keeping construction workers on the job. I remain committed to working with both Democrats and Republicans to find long-term solutions that ensure our region’s transportation networks are the best in the world.”

Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.

Rep. Rodney Davis, R-Taylorville, called it “absolutely imperative” for the House to act. “By supporting this bill, we are able to protect nearly 30,000 jobs and 4,000 construction projects right here in Illinois,” Davis said. “Extending the Highway Trust Fund and surface transportation programs through May also enables us to continue working on a longterm highway bill that will create even more jobs and better pre-

pare us to keep up with our 21st century transportation needs.” American Farm Bureau Federation reported that the Senate plans to allow for a vote on HR 5021. A separate transportation funding proposal in the Senate — Preserving America’s Transit and Highways Act of 2014 — also would provide $10.8 billion for the Highway Trust Fund. AFBF said the Senate version raises additional revenue needed to offset the general fund trans-

fer with several tax compliance provisions. Earlier this month, states were notified that the Highway Trust Fund won’t have enough money to reimburse states for ongoing projects if Congress doesn’t act. The fund represents 75 percent of Illinois’ annual transportation funding, according to Sen. Dick Durbin’s office. “It would be the height of irresponsibility to sit by and do nothing while the trust fund b e c o m e s i n s o l v e n t ,” s a i d

Durbin, D-Springfield. “Yet, we are quickly approaching a deadline that will result in a serious financial shortfall to one of our nation’s most important infrastructure funds. That shortfall would have an impact on projects across Illinois.” According to the W hite House, if Congress fails to act: • 29,669 jobs in Illinois could be jeopardized. • 3,945 highway and transit projects could be slowed or stopped.

T h e Wa t e r R e s o u r c e s Reform and Development Act (WRRDA) not only authorized improvements to U.S. waterways infrastructure, but also relaxes regulations for farmers with aboveground fuel storage tanks. The Environmental Protection Agency’s (EPA) Spill Prevention Control and Countermeasures (SPCC) rules require farms that meet certain storage capacity amounts to develop plans to prevent oil spills and to clean up after one, among other requirements. The rules, which had been

in place for years, didn’t apply to farms until 2013, according to Lauren Lurkins, Illinois Farm Bureau’s director of natural and environmental resources. IFB and the American Farm Bureau Federation raised concerns about the effect the new rules would have on farmers. WRRDA, signed into law last month, includes changes to the SPCC rule. “These are great changes for our members,” Lurkins said. “We believe this expanded exemption will provide a much more workable framework for

our members. We were pleased to see it included in the bill.” Under WRRDA: • A professional engineer must certify a SPCC plan for a farm with an individual tank with aboveg round storag e capacity greater than 10,000 gallons (previously 5,000); an aggregate aboveground storage capacity greater than or equal to 20,000 gallons (previously 10,000); or a reportable oil discharge history. • E PA a n d U S DA m u s t determine the specific exemption amounts under which a far mer can self-cer tify his

plans or be completely exempt from compliance within a year. The exemption would be no less than 2,500 gallons and no more than 6,000 gallons. Previously, only farms with capacity of less than 1,320 gallons were exempt. • Farmers must include any tank above 1,000 gallons when determining total aggregated a b ove g r o u n d f u e l s t o r a g e c a p a c i t y. P r e v i o u s l y, t h e requirement was 50 gallons. Lurkins said IFB will keep members updated on the new exemptions and EPA’s implementation. — Deana Stroisch

Livingston County Farm Bureau President Jason Bunting fields questions from 15 Cook County teachers participating in a Summer Ag Institute. The group talked over lunch at McDonald’s Family Restaurant in Fairbury. (Photo by Diane Merrion)

day program having a better understanding of agriculture and how easily it can be integrated into all subject areas within the school curriculum. T he Cook County Far m Bureau Foundation hosts two Summer Ag Institutes each summer for county teachers. Thirty-five educators participated this year. The success of these programs lies with the willingness of local farm bureaus to bring agriculture to life for individuals who have little or no knowledge of the industry. Thanks to the farmers and ag professionals of Cook County and all of the counties who are always willing to host our teachers.

Aboveground fuel storage tank rules changed

Chicago teachers learn ag lesson in central Illinois Fifteen Chicago teachers recently headed to farm “classrooms” throughout central Illinois as part of Cook County Farm Bureau’s Summer Ag Institute. BY DIANE MERRION

Highlights included a lunch discussion with Livingston County Farm Bureau President Jason Bunting and Manager Jody Hughes along with Lawrence County Far m Bureau Manager Danielle Brown. Topics included technolog y in far ming, GMOs (genetically modified organisms) in crops and crop insurance options. One teacher noted, “Jason

Bunting gave an excellent presentation. I liked hearing his perspective as a current farmer and member of the farm board. It gave me a much better insight to the farmer’s life, occupation and trials.” McLean County Farm Bureau Assistant Manager Anna Ziegler arranged a v i s i t t o B i r k e y ’s Farm Store. Teachers drove large far m machines and learned about the technology available to farmers. Several McLean County far mers — Dave Caldwell, Dusty Foster, Pat Bane, John Olson and Doug Caldwell — helped coach teachers behind the wheel. They also shared information about advances in farm technology. Other stops included Slagel

Far m, Big River Resources, Mackinaw Winery, Hartz Produce, Monterey Mushrooms, a

wind farm tour and an alpaca farm in Ellsworth. The teachers left the four-

Diane Merrion serves as Cook County Farm Bureau agriculture literacy coordinator.

FarmWeek • Page 8 • Monday, July 21, 2014

Mercer County Fair, 1927 The Mercer County fairgrounds in 1927 looks similar to today’s grounds in Aledo. The fair began in 1853 in Millersburg.

Mercer County Fair, 2014

Photos by Ken Kashian

CountyKeeping fairs history, tradition alive

County fairs mean much more than funnel cakes and livestock shows.

The Zwicker family of Orion serves as a prime example. Pictured right, Trent Zwicker, far right with Shorthorn steer, entered the Mercer County Fair showring last week for his 11th year and won grand champion honors. Celebrating from left are Cody Bennett, and Jim, Carla and Deana Zwicker. Below, Bennett of Milan sold the awardwinning steer to the Zwickers.

Above, Roger Grundstrom, Mercer County Agricultural Society president, pauses at the Pumpkin House built in 1880 at a cost of $169.50. Several other fair buildings date to the early 1900s. In 1997, the fairgrounds joined the National Register of Historic Places.

Forage quality key to feed efficiency, milk production Page 9 â&#x20AC;˘ Monday, July 21, 2014 â&#x20AC;˘ FarmWeek

BY DANIEL GRANT FarmWeek

Tony Snow, a dairy producer from Mulberry Grove (Fayette County), began an intensive grazing program on his farm in 2004. And he admits the first couple years were a little rough. But now that heâ&#x20AC;&#x2122;s got the system and crop rotations down, he likes the benefits it provides his herd and operation. Snow grazes his dairy herd, 115 milk cows and 50 head of dry cows, most of the year and stores haylage for winter feed. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s other ways of feeding cows than just the traditional way,â&#x20AC;? Snow said last week as he hosted the Illinois Forage Expo, sponsored by the Illinois Forage and Grassland Council, USDA, the University of Illinois and the Bond County Soil and Water Conservation District. Snow uses a variety of annual forages. Attendees of the Forage Expo learned more about the crops during a plot demonstration on Snowâ&#x20AC;&#x2122;s farm that featured sorghum, sudangrass, hybrid sudangrass, forage sorghums, pearl millet, grazing maize and hybrid pasja. â&#x20AC;&#x153;Forages are essential to ruminant health. Theyâ&#x20AC;&#x2122;re a major source of fiber,â&#x20AC;?

Tony Snow, right, a dairy farmer from Fayette County, discusses the use of forages in dairy diets with attendees of the Illinois Forage Expo last week. The annual event was held on his farm near Mulberry Grove. Snow uses intensive grazing on his farm. He switched to the system in 2004. (Photo by Daniel Grant)

said Dave Jones, director of nutrition at Agri-King. â&#x20AC;&#x153;But it has to be digestible or it will end up as manure.â&#x20AC;? The timing of harvest plays a key role in determining forage quality. Grasses should be harvested around

Oswald: Grazing annuals, cover crops can reduce livestock production costs A good solution exists for cattle producers who had difficulty harvesting hay and forage in recent months due to wet conditions. Farmers simply can let their cows harvest the crops via grazing, according to Dean Oswald, regional cover crop specialist for the Illinois Council on Best Management Practices. â&#x20AC;&#x153;The first place to start, when looking to reduce livestock production costs, is feed costs,â&#x20AC;? Oswald said last week at the Illinois Forage Expo in Fayette County. â&#x20AC;&#x153;(Feed) accounts for 60 percent or more of costs.â&#x20AC;? Oswald recommends the use of various annuals and cover crops to amp up grazing programs. â&#x20AC;&#x153;Look at going as far as you can toward year-round grazing,â&#x20AC;? he said. â&#x20AC;&#x153;Anytime you let the animals harvest (forage and cover crops) themselves, itâ&#x20AC;&#x2122;s almost always cheaper than something we can provide or store for them later.â&#x20AC;? Farmers interested in extending the grazing season for their herds first should do a forage audit of their operation and develop a grazing plan. Once a farmer knows about how many pounds per day of forage his or her herd requires, then itâ&#x20AC;&#x2122;s time to consider various crops. Oswald recommends farm-

ers use cool season annuals, such as barley, cereal rye, oats, triticale or wheat to extend the number of grazing days in a year. Fall oats typically withstand colder temperatures, which provides the accumulation of more dry matter into winter, barley grows farther north than most cereal crops and annual ryegrass makes high quality forage, although it doesnâ&#x20AC;&#x2122;t provide the same tonnage as cereal rye, Oswald noted. Farmers should also consider using more of their cash crop residue for grazing. â&#x20AC;&#x153;We have all this corn residue, but itâ&#x20AC;&#x2122;s one of the things not utilized in Illinois,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s cheap feed, so you can afford to do a little work with fences.â&#x20AC;? The use of cover crops also can improve soil health while providing another source of grazing material. â&#x20AC;&#x153;Turnips are a very high quality forage for grazing,â&#x20AC;? Oswald said. â&#x20AC;&#x153;Use grasses with them to add more fiber to the diet.â&#x20AC;? Oswald urged producers to check crop insurance rules and consider herbicides carefully before planting cover crops. â&#x20AC;&#x153;We need to allocate our forage more efficiently,â&#x20AC;? he added. â&#x20AC;&#x153;Feed more annuals and cover cropsâ&#x20AC;? and possibly sell excess hay. â&#x20AC;&#x201D; Daniel Grant

the boot stage, while alfalfa should be cut around the pre-bud stage. The forage crops also should be harvested in the afternoon when possible to maximize sugar content in the plant. â&#x20AC;&#x153;That plant cell is a grocery store

(full of protein, minerals and sugar along with other key feed elements),â&#x20AC;? Jones said. â&#x20AC;&#x153;If you canâ&#x20AC;&#x2122;t get (a herdâ&#x20AC;&#x2122;s) nutrition there, youâ&#x20AC;&#x2122;ll have to pay for it in the feed ration.â&#x20AC;? The weather so far this spring and summer obviously challenged producers to harvest their hay and forage in a timely manner. â&#x20AC;&#x153;The first cutting was pretty short. Because of the cool spring, we didnâ&#x20AC;&#x2122;t get much growth,â&#x20AC;? Snow said. â&#x20AC;&#x153;And getting hay made dry this spring was totally impossible.â&#x20AC;? The national average digestibility of hay, haylage and corn silage hovers around 73 percent. Snow challenged livestock farmers to shoot for digestibility averages closer to 75 to 80 percent. â&#x20AC;&#x153;As the quality of forage goes up, digestion goes up,â&#x20AC;? Snow said. â&#x20AC;&#x153;Now you can feed less.â&#x20AC;? Dry matter digestion of hay improved significantly from 1995 to 2010 nationwide. Snow believes itâ&#x20AC;&#x2122;s due in part to improved management and equipment. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of money to be made with good forages,â&#x20AC;? he added. â&#x20AC;&#x153;Go by the plant, not the calendar,â&#x20AC;? when determining the right time to harvest forage.

Learn to Shine with IFBâ&#x20AC;&#x2122;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:

Additional State Topics:

The farm bill crop insurance provisions offer a safety net for crop lost due to natural disaster and/or price risk. Should a safety net for livestock producers be developed and what provisions might it include?

How would the conditions of government managed public lands change if they were managed privately? What are the pros and cons of government ownership of land versus private ownership?

+RZ VKRXOG RXU QDWLRQÂˇV SROLFLHV EDODQFH FRQFHUQV DERXW food insecurity against concerns about the safety or environmental impact of modern agricultural technologies? What role should farmers have in discussing and debating these issues in our society and with our lawmakers?

Should farmers and ranchers be held liable for possible food borne illnesses when the food item of concern can be traced back to their farms or ranches? Why or why not? How can young farmers and ranchers work to encourage membership growth and member engagement for the county, state and national Farm Bureau organizations?

Entry Deadline July 23 (to Illinois Farm Bureau) IAA District

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July 31 August 14 August 25 August 18 August 5 August 19 $XJXVW August 26 August 19 August 4 August 19 August 14

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Winnebago-Boone FB, Rockford Wyffels Hybrids Research Center, Geneseo Mendota Civic Center, Mendota Pioneer Seed Facility, Mazon 1st Farm Credit, Morton Adams County FB, Quincy 6DQJDPRQ &RXQW\ )% 6SULQJĂ&#x20AC;HOG Piatt County FB, Monticello Edwards County FB, Albion Montgomery County FB, Hillsboro St. Clair County FB, Belleville Jackson County FB, Murphysboro

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Farmers, city, watershed benefiting from EPA grant FarmWeek • Page 10 • Monday, July 21, 2014

Central Illinois farmers and their local community mutually benefit from a federal grant to improve water quality. Morgan County farmers in the Lake Muavaise Terre (MOW vess star) watershed are “refreshing” conservation practices to reduce erosion and nutrients flowing into a community lake, said Mike Baise, American Farmland Trust (AFT) Midwest director. Jacksonville is spending $3.7 million to dredge the lake that serves as the city’s secondary water source and was identified as a state priority watershed. The city also is investing in farm conservation practices that will benefit the lake. AFT oversees the water-

shed conservation effort with funding from a nonpoint source pollution grant. U.S. Environmental Protection Agency (EPA) funds and Illinois EPA administers the grants, frequently referred to as Section 319 grants. In Illinois, $3.4 million will be distributed in Section 319 grants. As in the Jacksonville watershed, the grants fund watershed planning and implementation of approved plans that focus on water quality. Projects funded by Section 319 grants remain voluntary and work gets prioritized by the local entities involved in the plan and work. In the Jacksonville area, the Section 319 grant covers 60 percent of the cost of conservation practices, while the city funds an additional 20 percent.

Participating farmers pay the remaining 20 percent. “It’s a win-win for the city and the agricultural community,” said Jacksonville Mayor Andy Ezard. “We’re excited to work with farmers and help them with financial backing to show we’re good neighbors.” The project has generated “excellent participation” within the 21,000-acre watershed, said Larry Werries, the watershed coordinator. Werries, a retired Morgan County farmer,

served as a former Illinois agriculture director. Werries first reached out to farmers and landowners whose fields are closest to the lake; however, the project continues to expand in the watershed. A few weeks ago, more than 30 farmers attended a watershed advisory committee meeting, he said. Conservation practices used in the project include filter strips, grass waterways and dry dams, according to Werries.

Last week, the city council discussed whether to apply for a new Section 319 grant to continue the watershed project. Ezard said he anticipated an application would be signed later this month because council discussions about the project have been positive. The farmers and landowners are being good neighbors, and their conservation practices will enhance the lake’s storage capacity and delay additional dredging, the mayor said. Jacksonville Alderman Mike Wankel said he was excited about farmers’ receptivity and called the cooperation between city and farmers “great.” “It’s preventative maintenance,” Wankel said of the conservation effort. “And anything we can do will help.”

Aspiring farmers, new ones with less than five years of experience, commodity farmers interested in diversifying with fruits or vegetables, and high school and community college ag instructors may

apply for a free training program offered through the University of Illinois crop sciences department. Applications for the Preparing a New Generation of Illinois Fruit and Vegetable

Farmers program will be accepted through Oct. 24 or until the program’s limited spaces are filled. Applicants are encouraged to provide as much information about themselves and their interest

in specialty crops in the additional comments section of the online application. Applications are available at {newillinoisfarmers.org/ new_generation_app.php}. The program features classroom, hands-on and infield instruction on essential skills and information in three locations: the U of I Urbana campus, U of I’s Dixon Springs Agricultural Center in Simpson and the Kane County U of I Extension office in St. Charles. Classes occur from 9 a.m. to 4 p.m. one Saturday a month at each location from December 2014 through November 2015. Through a partnership with the Illinois Migrant Council, a program in Spanish will be offered. Sites will be determined based on enrollment. U of I Crop Sciences Professor Rick Weinzierl and coworkers received a grant from the USDA’s Beginning

Farmer-Rancher Development Program to implement the three-year project to educate aspiring Illinois farmers. The first session started in fall 2012. Participants are not charged if they attend at least 10 of the 12 sessions, but must make a refundable $300 deposit with their application. Those who enroll but do not complete the program are asked to give their deposit to a local food bank. Topics will include: land acquisition and transfer, business planning, legal issues, insurance, marketing, farm safety, food safety, equipment operation and safety, hightunnel construction and operation, irrigation, pest and disease scouting, harvest practices, and conventional and organic production. Additional information will be available Aug. 14 during U of I Agronomy Day in the exhibit tent or on Facebook at {NewIllinoisFarmers}.

BY KAY SHIPMAN FarmWeek

‘It’s a win-win for the city and the agricultural community.’ — Andy Ezard Jacksonville mayor

Program accepting applications for aspiring growers

Looking for a Convenient Supply of DEF?

When it comes to the success of your operation, you can rely on your local FS energy specialists. If your new equipment uses diesel exhaust fluid (DEF), your local FS Co-op and participating FAST STOP® locations have just what you need – convenient supply. From packaged or bulk DEF to even the dispensing equipment, FS has the products and the knowledgeable experts to help you go further. FS – The people and the products to take you further. Go further with FS.

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Tuesday: • FarmWeek: “The Early Word” • Jim Angel, Illinois State Water Survey climatologist: ag weather • Mark DePue, Abraham Lincoln Presidential Library: former Illinois Gov. Jim Thompson’s campaign style Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Paul Schimpf, R-Waterloo: candidate for state attorney general

Thursday: • Illinois Corn Growers Association representative • Ivan Dozier, Natural Resources Conservation Service state conservationist • Jonathan Perkins, Beck’s Hybrids Southern Illinois Practical Farm Research: agronomy report Friday: • Harry Cooney, GROWMARK Inc.: energy update • Robert Dunker, University of Illinois: Agronomy Day • Rich Guebert Jr., Illinois Farm Bureau president: issues update • “Horse Talk”

Purdue agronomist: Wet hay may start fire

Hay baled and stored at a higher than recommended moisture level may get hot enough to start a fire, a Purdue University Extension forage specialist warned. Farmers who rushed to bale hay without using a preservative when moisture content exceeded 20 percent are at risk, according to Keith Johnson. In some areas, frequent rains have not allowed cut forage to dry to safe moisture levels for hay storage. A novice might think a hay fire would occur in less than a week, but it actually could take a month, Johnson said. Farmers should monitor the temperature of stored hay and notify the local fire department of any potentially dangerous heat buildup, he added. If hay doesn’t dry and is stored prematurely, heat-toler-

First CSP participants may renew contracts

Farmers with expiring USDA Conservation Stewardship Program (CSP) contracts have until Sept. 12 to renew those contracts. Nationwide, about 20,000 CSP contracts are nearing the end of their initial five-year contract and may be renewed for five more years when farmers agree to add conservation actions. Another signup will be offered in fiscal year 2015. Since 2009, farmers and landowners have enrolled more than 58 million acres in CSP. They have applied new conservation practices and installed structures that positively impact the soil, water, air quality and wildlife habitat. To learn about technical and financial assistance available through CSP, visit {nrcs.usda.gov/GetStarted} or your local USDA service center.

ant microorganisms develop in high numbers within the bales, increasing the temperature. When temperatures reach 150 degrees Fahrenheit, stacked hay should be taken apart to allow more air circulation to cool heated bales, Johnson advised. When the temperature reaches 200 degrees, a fire likely will occur. Hay stored with too much moisture can cause other problems besides the risk of a barn fire, Johnson noted. Forage quality is reduced and livestock will eat less of it. Mycotoxins within the mold may be produced by microorganisms. The mycotoxins can cause a number of health problems in livestock.

Page 11 • Monday, July 21, 2014 • FarmWeek

FAIR LEGACY FOR FARM FAMILY

Zander Endress of Pearl City, far right, received $31,000 for his steer at the recent Stephenson County Fair’s Junior Livestock Auction when the community honored his late father, Lynden Endress, a Pearl City dairy farmer. Stephenson County Farm Bureau Manager Bruce Johnson, fourth from right in blue, joins representatives of 30 organizations, businesses and families that raised money, which will be put into a trust for the three Endress children. Contributors included the Stephenson County Farm Bureau, Stephenson County COUNTRY Financial Insurance agents and COUNTRY Financial. Lynden Endress, 42, served 14 years on the county Farm Bureau board before he was killed in a farm accident June 20. (Photo by Ed Curry, River Ridge High School ag instructor)

FarmWeek • Page 12 • Monday, July 21, 2014

DRIVING OUT CANCER

Reliable sources key to cover crop seed

Russ Tjarks of Sibley drives the Purple Cancer Eater — a 1947 Farmall H — and leads a parade of tractors driving to fight cancer. Fifty-six tractors, 21 motorcyles and eight, four-wheeldrive vehicles completed the recent 10th Sibley Burr Oaks Area Tractor Drive, raising more than $3,000 for Ford County Relay For Life. The effort, led by Tjarks, commemorates the life of his sister, Shirley Ables, and good friend, Tom Kerber, who died of cancer in 2004. Drivers visit nursing homes and parks along the route, which included Sibley, Roberts, Piper City and Chatsworth. (Photo courtesy of Merlin Tjarks)

Small-scale cheesemakers growing dairy food sector

The U.S. cheesemaking sector continues growing, especially the smallest businesses, according to Specialty Food News. Between 2007 and 2012, the smallest cheesemaking businesses far outpaced their larger counterparts based on data from the Census Bureau’s 2012 Economic Census.

While total U.S. cheesemaking businesses increased by 13 percent, the smallest ones that employ up to 19 people grew by 28 percent. In 2012, small cheesemaking facilities accounted for 46 percent of all cheesemaking businesses compared with 41 percent in 2007.

There’s a difference between field experts and experts in the field. At FS, we’re experts in the field. Our crop specialists are driven to maximize every acre and bring the latest agronomic technologies and innovations to your farm. Whether recommending the appropriate opriate hybrid or varietyy,, nutrient management m for optimum growth, or advice on disease and pest management, our crop specialists are always focused on pointing your operations forward. So, the only thing you’ll be asking FS is, what’’s next?

www w.fssystem.com

Q: What should I consider about reliability of cover crop seed sources? What about seed mixes? Dave Bishop, PrairieErth Farm: I look for suppliers who have been in business for a while, and are actively promoting cover crops as a main focus of their business. Pete Fandel, Illinois Central College: Buy your cover crop seed from a reputable dealer and ask what variety he or she is selling. Avoid buying seed that is a blend as you may be getting several varieties mixed together. This may cause issues when you’re trying to decide when to control the cover crop the next spring. That’s especially true when buying annual ryegrass. Ideally, you want a single variety bred from the Westerwold annual ryegrasses. Mixing cover crop species can work well, but make sure your mixture achieves the goals you want out of your cover crop and that the timing of control in the spring is matched, so that all species can be controlled with one application and with herbicides compatible with each other. Dean Oswald, Illinois Council on Best Management Practices: Talk with your seed dealers to see where they source their seed and what varieties they carry. Do some homework on differences in varieties. For example, with annual ryegrass, some varieties are much more winter hardy than

others. VNS varieties may be blends that may lack vigor or are more difficult to terminate. As for mixes, I suggest keep it as simple as possible. Use one or two species to accomplish the goals for your field. Additional species in the mix will no doubt increase the cost of the mixture. A shotgun approach with lower rates may reduce the overall effectiveness of the results you were looking for. Mike Plumer, Illinois Council on Best Management Practices: I recommend small cover crop seeds be grown in the Northwest to ensure good quality; no chance of noxious weeds and good inspection. Oats, triticale and cereal rye are grown in the Midwest and Canada, and there have been serious problems the last two years with seed quality. Make sure there is a good seed tag on every bag showing the seed has been tested, inspected for weed seed and a current germination test. Mixes should follow the same requirements. The issue is, is the mix what you and your soil need? To view previous questions and answers, visit {farmweek now.com/customPage.aspx?p =544}.

Questions may be emailed to kayship@ilfb.org; add “Discover Cover Crops” in the subject line or mail to Discover Cover Crops, Kay Shipman, 1701 Towanda Ave., Bloomington, Ill. 61701.

Cover crop field day scheduled for Lake Springfield Watershed

Cover crops and soil health will be the focus of an Aug. 6 field day starting at 9 a.m. for farmers and others in the Lake Springfield Watershed. Participants will meet at CHS Inc., Lowder. Advance registration is requested. Mike Plumer and Pete Fandel, Illinois Council on Best Management Practices specialists and FarmWeek Discover Cover Crop panelists, will discuss using cover crops to manage nutrients and selecting cover crop species. R. David Hammer, University of Missouri soil scientist, will cover soil health with sound management. Nicholas Goeser with the National Corn Growers Association (NCGA) will talk about NCGA’s soil health project. For information, visit {illinoiscbmp.org}. To register, contact the Sangamon County Soil and Water Conservation District at 217-241-6635, extension 3. The Lake Springfield Watershed project works with farmers and ag suppliers to reduce agricultural nutrient losses to enhance the water quality in Lake Springfield.

ASS-MORGAN — The Foundation will sponsor a play day at 8 a.m. July 28 at The Links and Jacksonville Sportsmans Club. Registration will begin at 7:30 a.m. Cost is $120 for sponsors and $40 for individuals. Call the Farm Bureau office at 245-6833 to register by Wednesday. Proceeds will benefit the scholarship program. LAY — Young Leaders will sponsor a concert at the Clay County Fair. Jordan Tolliver, Clay County native, and Whiskey Rose will open the show. Ira Dean will be the main performer. Tickets may be purchased from a Young Leader or at the Farm Bureau office. Cost is $10. Proceeds will benefit Young Leaders projects and Agriculture in the Classroom (AITC). • Farm Bureau will host a membership picnic and family fun night at 4 p.m. Saturday at the Farm Bureau office. The Bradshaws will perform. The Foundation will hold a silent auction with proceeds benefiting the Foundation scholarship fund. For more information, call the Farm Bureau office at 6653300. OOK — Farm Bureau will host a food drive to support Ronald McDonald Charities of Chicagoland and Northwest Indiana Aug. 8-10 at Schaumburg Boomers’ games. Nonperishable food items may be dropped off at the Farm Bureau kiosk prior to the start of the games. Visit {boomersba seball.com} for tickets and game times. DWARDS — Farm Bureau will sponsor a membership appreciation meal from 5 to 7 p.m. July 30 at Edwards County Senior Citizens Center. The event is open to members and their families. Free tickets are required and may be picked up at the Farm Bureau office or Farm Bureau booth at the Edwards County Fair. ORD-IROQUOIS — Farm Bureau will sponsor a policy development luncheon for members at noon July 31 at Monical’s Pizza in Watseka. There is no cost. No reservations are required. • Farm Bureau will sponsor a farm bill informational meeting at 7 p.m. Aug. 4 at the Farm Bureau building in Gilman. Jonathan Coppess, University of Illinois assistant law and policy professor, will speak. Reservations are not required for the free member event. ULTON — The Women’s Committee will sponsor a Best Milk Mustache contest at 1 p.m. Thursday in the merchant building at the county fairgrounds. Children under the age of 10 may participate. No charge or preregistration is required. Each participant will win a prize. Top 10 finalists and the overall winner will be announced at 3 p.m. • The Young Farmers will

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Page 13 • Monday, July 21, 2014 • FarmWeek

sponsor a pedal tractor pull at 2:30 p.m. Friday at the Fulton County Fairgrounds Grandstand. Participants should weigh 100 pounds or less. Cash prizes and trophies will be awarded prior to the 6 p.m. tractor and semi pull. • The Women’s Committee will sponsor a beef cookoff contest at 10:30 a.m. Saturday at Fulton County Fair Band Pavilion. No fee is required. One recipe is allowed per contestant, who must be Fulton County residents. Entry forms are available at the Farm Bureau office or in the fair book. For more information, call the Farm Bureau office at 547-3011. RUNDY — Farm Bureau will co-sponsor an agriculture safety and education golf benefit from 11:30 a.m. to 6 p.m. Sept. 1 at Nettle Creek Country Club, Morris. Cost is $75 per person or $300 for a team of four. Call 9416758 for reservations by Friday. Proceeds will benefit Youth Leaders health and safety projects and the William J. Rodosky and William B. Norton scholarship programs. AWRENCE — Farm Bureau will co-sponsor a charter bus trip to a Cardinals/Brewers game at Busch Stadium, St. Louis, Mo., leaving at 8:30 from Lawrenceville and 9 a.m. from Olney Aug. 3. Cost is $60 for members and $70 for nonmembers. Call the Farm Bureau office at 9432610 for reservations by July 31. EE — Farm Bureau will co-sponsor a blood drive from noon to 6 p.m. Thursday at the Lee County Fairgrounds. Call the Farm Bureau office at 857-3531 to volunteer or donate. Walk-ins are welcome. • The Young Leader Committee will sponsor a food stand and coloring contest from 5 to 7 p.m. Thursday at the Lee County 4-H Fair and Junior Show. Visit the Lee County 4-H Fair website or the Young Leaders food stand for coloring contest forms. ACON — The Foundation golf outing will be at 8 a.m. Aug. 4 at the Moweaqua Golf Course. Visit {maconcfb.org} to register. Proceeds will benefit the Foundation scholarship fund. • Farm Bureau is offering a fire extinguisher recharge and sales program until Aug. 15. Members may purchase 5-, 10and 20-pound extinguishers, and bring in old extinguishers to be recharged. For more information, call the Farm Bureau office at 877-2436. ACOUPIN — Farm Bureau will host a free, on-the-road seminar at 7 p.m. Aug. 5 at the Farm Bureau building. Kevin Rund, Illinois Farm Bureau senior director of local government, will focus on truck rules, USDOT numbers and offhighway vehicle stamps. Reservations are required by Aug. 1.

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Call the Farm Bureau office at 845-2571. • Farm Bureau will sponsor a farm bill update at 7 p.m. Aug. 7 at the Farm Bureau building in Carlinville. Doug Yoder, IFB director of affiliate and risk management, will speak along with county National Resource Conservation Service staff. Reservations are required by calling the Farm Bureau office at 854-2571 by Aug. 4. CDONOUGH — The Foundation will co-host a golf outing at 8:30 a.m. Saturday at Gold Hills Golf Course, Macomb. Cost is $200 per team. Visit {mcdonough countyfarmbureau.org/golf-out ing/} for reservations by Wednesday. Proceeds will benefit Agriculture in the Classroom and scholarship programs. ERCER — The Foundation will sponsor a dinner and bake sale from 4 to 7:30 p.m. Thursday at Aledo’s Central Park. Suggested donation is $4 per sandwich and $6 per dinner. Proceeds will benefit scholarships and AITC programs. ONROE — Farm Bureau will co-sponsor grain safety training from 9 a.m. to 1 p.m. July 31 at the Southwestern Illinois College Red Bud campus. Call the Farm Bureau office at 939-6197 or email mcfarm@htc.net for reservations by Friday. EORIA — Farm Bureau will co-sponsor an informational meeting on the proposed Spoon River Transmis-

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sion Line between Galesburg and Peoria at 6 p.m. Tuesday at the Brimfield American Legion. Laura Harmon, IFB Office of the General Counsel, will speak. Call the Farm Bureau office at 686-7070 for more information. • Farm Bureau will sponsor a Commercial Driver’s License training course at 9 a.m. Aug. 6 at the Farm Bureau Auditorium. Joe Varda, Mid-Illini Educational Consultants, will provide training and administer tests. Cost is $45 to members and $55 for nonmembers. Call the Farm Bureau at 686-7070 for reservations by Aug. 1. ANDOLPH — Farm Bureau will co-sponsor grain safety training from 9 a.m. to 1 p.m. July 31 at the Southwestern Illinois College Red Bud campus. Call the Farm Bureau office at 443-4511 or email rand olph@rcfb.org for reservations by July 25. ICHLAND — Farm Bureau will co-sponsor a charter bus trip to a Cardinals/Brewers game at Busch Stadium, St. Louis, Mo., leaving at 8:30 from Lawrenceville and 9 a.m. from Olney Aug. 3. Cost is $60 for members and $70 for nonmembers. Call the Farm Bureau office at 393-4116 for reservations by July 31. ERMILION — Farm Bureau will take southern Illinois peach orders through Aug. 4. Twenty-five pound boxes will cost members $24. Order forms are available at vcfb.info. Members will be notified of the delivery date.

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ARREN-HENDERSON — The Foundation will sell southern Illinois peaches. Cost is $25 for a 25-pound box. Delivery will be mid to late August. Order forms are available at the Farm Bureau office. Deadline to order is Aug. 1. For more information, call the Farm Bureau office at 7349401. Proceeds will benefit AITC and scholarship programs. AYNE — Farm Bureau will host a member appreciation dinner at 5 p.m. Aug. 1 at the Cumberland Presbyterian Church, Fairfield. Cost is $2. Tickets may be purchased at the Farm Bureau office by Friday. HITE — Farm Bureau will host a member appreciation luncheon from 11 a.m. to 1 p.m. Aug. 6 in the Floral Hall at the White County Fairgrounds. Call 3828512 to register by Friday. ILL — Young Farmers will sponsor a harvest kickoff golf outing from noon to 7 p.m. Sept. 5 at Cinder Ridge Country Club in Wilmington. Cost is $100 if registered by Aug. 5. Dinner only is $30. Proceeds will benefit AITC. Call the Farm Bureau office at 7274811 for sponsorship forms or reservations. Reservation deadline is Sept. 1. ILLIAMSON — Farm Bureau will cosponsor a cover crop workshop at 4:30 p.m. Aug 7 at Southern FS in East Marion. Call the Farm Bureau office at 993-2609 for reservations by Aug. 5.

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FarmWeek Page 14 Monday, July 21, 2014

Fall fertilizer market bears watching after unusual spring The spring season that was supposed to be late, due to the winter that wouldn’t end, turned out to be earlier than expected. And it had the longest “tail” on it I have ever seen in my years in this crazy business. There is still isolated demand out there even at this extremely late date. One thing is very clear — spring demand completely emptied out the fertilizer supJoe Dillier ply-chain, dusted the bins and drained nearly all of the tanks. Any dealers still looking to buy a load

BY JOE DILLIER

or two are finding they are driving a long, long way to places they have never heard of to get it. In some cases, buyers have to travel even a couple of states away. It brings to mind the old adage, “see the U.S.A. in your Chevrolet.” So, this emptied-out situation sets the backdrop for the fall season outlook for fertilizers. Of course, the 900pound gorilla in the room is the grain market, which will be a large factor in what happens to fertilizer demand this fall based on where grain and soybean markets go in the next few months. But that is always a wild card. As discussed a few months back in the last column, rail logistics going into spring were a significant problem. Get-

ting product in position was very delayed in many cases. This affected all products, especially the potash market. The question for the fall season is — after having just squeaked by with barely enough potash supply this spring, where are we now? Rail performance is significantly better, but it is not consistently significantly better. Delays now are not tied to frozen air brakes and snowed-in trains as was the case pre-spring. They are tied primarily to maxed-out shipping capacity as rail lines haul more and more “oilon-rail” and related-support materials as well as general economy items. The wet summer to date is causing shipping delays on the Mississippi and Illinois

River systems, the other main arteries for Midwest fertilizer distribution. At this moment, given the time we have until fall, we are not in panic mode about supply. Our best guesstimate is we will have time to get everything in place before the season gets significantly under way. However, it does bear watching, especially if river flooding worsens and/or crop maturity speeds up and it looks like harvest will be much earlier than normal. So, check in from time to time with your retailer about what makes sense. Joe Dillier serves as GROWMARK’s director of plant food. His email address is jdillier@growmark.com.

Livestock producers could see extended run of profitability BY DANIEL GRANT FarmWeek

Livestock supplies likely will remain tight and prices subsequently could stay strong through 2014 into 2015. That combination, along with a major drop in feed prices, has many livestock pro-

ducers set up for what could be an extended run of profitability, according to James Mintert, professor and director at Purdue University’s Center for Commercial Agriculture. “The economic environment in agriculture is changing dramatically,” Mintert said last week

Grainland, Minier Co-op approve merger

Grainland Cooperative and Minier Cooperative Grain Co. shareholders last week approved a merger, which will be effective Aug. 1. The newly formed company will continue operating under the Grainland Cooperative name. Jeff Brooks will serve as general manager, while Keith Swigart will serve as merchandising manager. In 1999, Farmers Grain Cooperative of Eureka merged with Secor Elevator Co. to form Grainland Cooperative. Minier Coop merged with Emden Farmers Grain Co. in 2007. Grainland Cooperative will have six locations — Armington, El Paso, Emden, Eureka, Minier and Secor — with 21 million bushels of storage capacity. The corporate office will be located in Minier.

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$79.43 $51.22 40 lbs. (cash) $111.00-$128.00 $118.90 Receipts

This Week 81,889 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 88,244

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $129.39 $129.01 $0.38 $95.75 $95.47 $0.28

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

Steers Heifers

This week $157.00 n/a

Prev. week $155.89 $155.89

Change 1.11 n/a

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 $214.48 $214.58 -$0.10

Lamb prices Negotiated, wooled and shorn, 100-159 lbs. for 139-160 $/cwt. (wtd. ave. 148.13

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 7/10/2014 4.2 13.9 36.5 7/3/2014 3.4 17.3 49.7 Last year 3.7 24.5 16.3 Season total 1573.0 99.1 1576.7 Previous season total 1293.0 137.8 606.2 USDA projected total 1600 925 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

at Purdue’s Top Farmer Conference. “(Crop returns are weakening) and profitability is returning to the livestock sector.” Cattle prices climbed about 33 percent since last year. In the hog sector, Mintert projected per head profits of $107 in the third quarter and $72 in the fourth quarter. The higher prices are due to low livestock and meat supplies combined with strong worldwide demand. The U.S. beef cattle herd declined 11 percent since 2006, which means slaughter will continue to decline through this year into 2015. “(Livestock producers) pulled down inventories in response to higher production costs (in previous years),” Mintert said. “We’re seeing that response just now.” And farmers likely won’t be able to rebuild herds and

flocks quickly. It takes years to rebuild cattle supplies due to physiological limitations, while the outbreak of porcine epidemic diarrhea virus in the hog industry delayed expansion in that sector, Mintert noted. He predicted swine inventories could grow as early as 2015, while it could be late 2016 or early 2017 before the cattle herd James Mintert exhibits significant growth nationwide. Elsewhere, a breeding issue in the chicken flock could delay expansion in that sector until mid-2015, according to Chris Hurt, Purdue University Extension economist. “Cow-calf producers should be in the driver’s seat

the next two to three years. They should have an extended run of profitability,” Mintert said. “But cattle feeding margins could tighten by year’s end.” Livestock feed costs could drop about 20 percent this year and decline up to 30 percent next year compared to 2013. Cattle feeding also has been aided by improved forage conditions across much of the U.S. with the exception of drought-parched areas of the southwest. The tight livestock supplies haven’t affected meat demand much, though, which pushed beef and pork prices to record highs this spring and summer. “We’ve seen phenomenal growth in exports,” said Mintert, who noted pork exports are expected to grow by 1 billion pounds by next year compared to 2010.

Livestock industry opens doors for young farmers

There’s an old farm expression that odors around a livestock farm actually represent the smell of money. And judging from the value of manure in recent years, that idea has some merit. In fact, the combination of record livestock prices, strong manure values and declining grain prices/feed costs make this an ideal time for young people to enter or return to farms via the livestock business, according to Rob Shaffer, a farmer from El Paso. Shaffer, chairman of the Illinois Livestock Development Group (ILDG) and member of the Illinois Soybean Association (ISA) board who raises Angus cattle, recently discussed the value of livestock during ISA’s media day in Bloomington. Rob Shaffer “In my area, it’s dog eat dog for farmland,” said Shaffer, who noted high land prices and cash rents make it difficult for some young people to enter farming via crop production. “Livestock are another way to bring the next generation home or to expand (an operation), whether it’s contract finishing pigs, turkeys in southern Illinois or a cattle feedlot,” he noted. Animal agriculture generates taxes and opens jobs around Illinois. The animal ag industry has about a $27 billion economic impact on the

state, overall, according to Shaffer. “We need the taxes and jobs,” he said. “If it brings someone back (to farm), that’s another job. And it diversifies the financial risk (of farms).” Diversification has improved the bottom line on many farms as a period of record crop prices wound down just about the time livestock prices raced to new heights. Meanwhile, the value of the manure produced by livestock climbed in recent years due to higher prices for commercial fertilizer. “You can use that manure to lower costs and be more sustainable,” said Shaffer, who noted farmers can save about $171 per acre using manure instead of commercial fertilizer. Manure also improves the water holding capacity of soil, provides micronutrients to crops and boosts soil quality, Shaffer reported. Growth in livestock feeding also benefits crop producers as it eats up locally-produced grain and oilseeds. Hogs consume 82 percent of soy meal used in the Illinois livestock industry followed by dairy (8 percent) and chickens (5 percent). Sheep, goats, fish and other animals consume the other 5 percent. ILDG consists of members from the Illinois Beef Association, Illinois Corn Growers Association, Illinois Farm Bureau, Illinois Milk Producers Association, Illinois Pork Producers Association and ISA. — Daniel Grant

CASH STRATEGIST Bigger crops, bigger stocks beget higher demand

With the USDA Quarterly Stocks and Acreage reports behind us, we have a much clearer outlook for our growing grain crop. While we will continue to debate the possibilities for greater yield potential, the important pieces of the supply side are mostly known. Barring any major weather issues, big crops will produce big stocks in 2015. Producers responded in a big way to the premium that had attached itself to soybeans in the previous marketing year and planted a record 84.8 million acres. The projected yield would also make for a record at 45.2 bushels per acre. At the current yield estimate of 165.3 bushels per acre, 83.8 million harvested acres produces 13.86 billion acres of corn. That figure makes for the second largest crop ever. Markets are currently trading under the assumption that big stocks are associated with lower prices, but this is a general rule that covers only one side of the equation. From these recently depressed price levels, the outlook for demand may begin to play a bigger role in guiding the direction of markets going forward. The various sources of demand will respond differently to what has recently been a shift of prices to a lower value range. There will be unique implications for domestic usage, foreign demand and demand from investment/fund monies. Record levels of ethanol production have required a steady flow of corn in the 201314 marketing year. USDA estimates that corn use for ethanol will total more than 5 billion bushels of corn, or about 36 percent of the year’s total production.

If strong margins persist and policy remains supportive to the industry, ethanol use will also require a substantial portion of the new crop. USDA currently projects usage in the order of 5.05 billion bushels for 2014-15, but that number could increase if prices remain depressed from recent highs. It is difficult to assign probabilities to the accuracy of USDA’s corn export figure at this time. Throughout the year, price and freight costs will be a determining factor in U.S. export competiveness. The biggest wild card may be Chinese demand. Economic and political considerations have turned the country away from U.S. corn, but demand from China has the potential to flip like a switch. Soon to be leaving behind another crop year characterized by tight stocks, it will also be crucial to refine our forward outlook for soybean demand. In the latest balance sheet revision, the crush figure was upped by 40 million bushels compared to the previous report. The export estimate was increased by 50 million bushels. Like those for corn, the current soybean demand projections suffer from similar uncertainty over their reliability. This far out from the new marketing year, USDA’s rationale for higher demand estimates is based on a simple equation — bigger crops, bigger stocks, lower prices, and therefore, higher demand. Managed money flows should not be overlooked as another source of demand. Investment and hedge fund traders may begin to attach less downside risk to the markets and length could be added to the net-long grain position. With what will presumably be near-record or record corn and soybean crops, price will depend on the rate at which supply outstrips increases in price-sensitive sources of demand.

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Corn Strategy

ü2013 crop: Old-crop exports are finishing the marketing year at a strong pace, but unshipped sales have been stacking up and some could be eventually rolled into the new-crop sales tally. Wait for a December rebound to $4.10 to $4.20 to make sales. Get basis locked up on hedge-to-arrive contracts and other unpriced inventory. ü2014 crop: As corn futures attempt to pull up from their contract lows, downside risk is becoming more limited. That said, the fundamental headwinds are still many, and rallies into the harvest are likely to remain shallow. Wait for December futures to find their way back to $4.20 to make sales. vFundamentals: With a big crop all but on the books, the attention will soon turn toward our outlook for demand. Ethanol production is predicted to continue at record levels, but we have to question whether or not the USDA is too aggressive in its 2014-15 estimate. Export sales are currently pegged at a strong 1.7 billion bushels. But high probabilities cannot yet be assigned to foreign demand projections this far out.

Page 15 • Monday, July 21, 2014 • FarmWeek Cents per bu.

Soybean Strategy

ü2013 crop: Nearby futures have declined nearly $2 since the USDA reported that oldcrop inventories were much larger than expected. A corrective bounce is not out of the question. Wait for August futures to rebound to $12.25 to wrap up sales. ü2014 crop: New-crop prices should eventually go lower, but the current break should be nearly exhausted. Wait for November to rally to $11.40 to $11.50 to make catch-up sales. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: Strong export sales were reported on the daily system last week, both in the old and new crops. The early interest in U.S. soybeans from China is promising. A record soybean crop is expected, but world users have proved willing to consume nearly all we can produce.

Wheat Strategy

ü2014 crop: Even with the resurfacing of tensions in the Black Sea, traders are tentative in their attitude toward the grain. Still, the two-month sell-off looks overdone. Watch for the cycle to turn up before pricing additional bushels if you are not selling wheat off the combine. ü2015 crop: Better opportunities are likely for marketing the 2015 crop. Sales may be recommended if traders reattach substantial risk premium to the market because of geopolitical developments and/or

weather issues overseas. vFundamentals: Users are simply too comfortable with current inventories to have become worried about the harvest issues that plague both the soft and hard red winter crops. Export sales have not been strong early in the marketing year, but that is not entirely unexpected seeing as the U.S. is the supplier of last resort. There remain many unknowns surrounding crops overseas. An El Nino event still has the potential to wreak havoc on wheat in Asia and Australia, and political unrest in Russia/Ukraine presents risk.

FarmWeek • Page 16 • Monday, July 21, 2014

Farmer-supported research key to nutrient loss reduction plan As farmers, we know the importance of clean water and fertile soil. For decades, we have voluntarily used conservation tillage, planted grass waterways and buffers, and applied many conservation practices to conserve our natural resources. Since 2012, I have represented Illinois Farm Bureau members on the Illinois Nutrient Research and Education Council (NREC). I am DALE gratified that Illinois HADDEN agriculture had the foresight to establish a sustainable funding mechanism for nutrient research and education. As a farmer, I am proud that I and my fellow Illinois farmers pay a 75-cent assessment per ton of bulk fertilizer for research and education that we can use. When NREC members discuss research projects and education efforts, common sense guides my decisions. I ask myself, “Would I be willing to try this approach or is it practical?” Now in its second funding year, NREC is investing $2.55 million into research projects and outreach of research findings this year. Visit {illinoi snrec.org} for more information. The research and education funded by NREC comprises a critical part of a soon-to-be announced Illinois Nutrient Loss Reduction Strategy. For the past year, the Illinois Environmental Protection Agency (IEPA) has worked with many stakeholders, including representatives from agriculture, municipalities, industry, environmental groups, and federal and state agencies to develop a

strategy to improve local water quality and retain nutrients in Illinois, reducing levels flowing into the Gulf of Mexico hypoxic zone. The reduction strategy builds upon existing programs to optimize reductions in nutrient losses. It promotes increased collaboration, research and innovation to achieve an ultimate goal of reducing nutrients by 45 percent as called for in the national Gulf Hypoxia Action Plan 2008. Our state reduction strategy also sets interim 2025 targets to reduce phosphorus flowing into rivers, streams and lakes by 25 percent and nitrate-nitrogen levels moving offsite by 15 percent. Those reduction levels were based upon an Illinois science assessment of phosphorous and nitrate-nitrogen losses within the state. The baselines that will be measured against future reductions of both nutrients are the average of annual levels from 1980 to 1996. Illinois farmers will find countless opportunities to keep more nutrients on their farms, and in the process, reduce losses. The reduction strategy describes many options that are part of state and federal programs as well as several familiar initiatives led by the agricultural sector, including NREC and the Illinois Council on Best Management Practices (CBMP). CBMP is a coalition of agricultural

organizations and agribusinesses. Illinois Farm Bureau participates along with Illinois Corn Growers Association, Illinois Fertilizer and Chemical Association, Illinois Pork Producers Association, Illinois Soybean Association, GROWMARK Inc., Monsanto and Syngenta. CBMP’s mission, as it relates to the reduction strategy, is to identify and promote sound agronomic practices to help farmers and others in the agricultural sector improve water quality. You’ve probably heard or read about

CBMP’s Keep it for the Crop (KIC) Education and Outreach Program. It provides Illinois farmers and ag suppliers a central source of information on nutrient management. It also promotes best management practices and works to make individual farmers and agricultural suppliers aware of available tools to improve practices in specific watersheds or regions of Illinois. KIC focuses efforts in eight priority watersheds throughout the state, including Lake Springfield, Lake Evergreen, Lake Bloomington, Lake Vermilion, Salt Fork Vermilion River, Vermilion River (Illinois Basin), Lake Decatur and Lake Mauvaise Terre. IEPA determined each of those waters is impaired by excess nitrogen, phosphorus or both. A major component of KIC is the “4R Program in Illinois.” The 4Rs of nutrient use stand for Right Source,

Farmers plant seeds via checkoffs The ag industry in recent years has been on a roll — strong prices, increased exports, reasonable yields and a level of optimism not enjoyed by much of the rest of our economy. Still, it’s no time to relax. As a diverse industry, we need to hang together. We are all aware of the outside critics who want to dictate to us how to far m. One important way we have to protect the industry is to have a strong voice in JOHN Washington and also in state BLOCK governments. Another effort that can bring big rewards is research. Farmers need to get behind their commodities. In the ’60s, Rollie Main, I and other Knox County farmers started the Illinois Corn Growers Association. Later, we became part of the National Corn Growers Association. A state checkoff program was established in which corn producers made contributions to their industry, funding muscle in statehouses and Washington, and paying for innovative research. Working with Monsanto and other companies, we have genetically enhanced (GE) crops today. GE crop yields have exploded, and all the while we use less chemicals, less labor, less energy.

Other commodities have done the same. They have been able to brand and market their food products because the checkoff programs provided the money to sell. I’m a pig far mer. How many pork chops did we sell with “the other white meat?” What about dairy’s “Got milk?” We always ask, “Where’s the beef ?” These promotions have worked. Our big gest crops are corn, soybeans and wheat. Two out of the three do not have national checkoff programs. One is wheat. I’ve talked with Jim Palmer, CEO of the National Association of Wheat Growers. He thinks it is time to give wheat the resources others have. Wheat is in the spotlight now with the upcoming Nor m Borlaug Dialogue in October in Des Moines, Iowa, and the Edgar McFadden Symposium in September at South Dakota State University. Borlaug and McFadden are noted for their wheat research. Borlaug’s “Green Revolution” saved millions of people from star vation. The “Green Revolution” of today is genetic engineering that will also save millions as the world population grows. John Block, former U.S. agriculture secretary and a hog farmer from Knox County, serves as a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda and Terman.

Right Rate, Right Time and Right Place. The goal is to help farmers and suppliers use a system to manage nutrients throughout the growing season, rather than as a single application. You may have heard or read about the on-farm nitrogen rate trials, and N-WATCH soil inventory and tracking that inform farmers about the nitrogen cycle and optimum nitrogen rates for individual fields. CBMP also offers cover crop training with regional crop specialists around Illinois. These specialists provide training, education and outreach to promote the use of cover crops for nutrient management. To learn more about CBMP or any of its initiatives, log on to {illi noiscbmp.org}. All Illinois residents — urban, suburban and rural — will find the reduction strategy offers them opportunities to improve water quality in the state and reduce nutrient losses. We farmers can reinvigorate our adoption of voluntary conservation and nutrient management on our land. You won’t find a “one-size-fitsall” approach for Illinois agriculture. It’s up to us to demonstrate voluntary conservation has — and continues — to work.

Dale Hadden of Jacksonville serves as District 10 director on the Illinois Farm Bureau Board and represents IFB on NREC.

LETTER TO THE EDITOR

Investigate climate change claims

Editor: I am disappointed in the alarming and sensational FarmWeek article, “Report: Climate change will lower crop yields.” The article assumes “climate change” is a cause and effect based upon an increase in carbon emissions and that it is a fact rather than theory. Esteemed aerospace engineer Burt Rutan, who designed and engineered the Voyager and SpaceShipOne amongst more than 40 other previous airplane designs, has rebuked and shown fraudulent data in climate change claims at {youtube.com/ watch?v=oxFm1TXshZY}. I encourage interested people to investigate this like I did, and come to your own conclusions. I personally believe “climate change” to be rubbish. After all, isn’t carbon dioxide what plants “breathe in” and then “breathe out” oxygen? Our yields will only increase! Yeaboy! KIRK KVITLE Quincy

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