THE DROUGHT’S impact just keeps on as now low river and stream levels are affecting everything from barge traffic to irrigation systems. ..................................3
fOR THE TimE bEinG, at least, pork processors will not require hog producers to change the housing systems they use on their farms. ......................................7
THE STaTE’S laRGEST wind farms will pump nearly $6 billion into Illinois’ economy over the turbines’ lifetime, a new study claims. ..............................................9
Monday, July 23, 2012
Two sections Volume 40, No. 30
Quinn to farmers: State will be there ‘in hour of need’ BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
Standing before a brittle cornfield, Gov. Pat Quinn last week assured Illinois farmers the state government would not forget them during this “natural disaster of epic proportions.” “We’ve got to come together and help our neighbors,” the governor said. “This is something for the whole state. This is the heart and soul of Illinois’ economy.” The governor addressed news media during a visit to the Jefferson County farms of Jim and Donnie Laird and Jerry Kitowski near Waltonville. He offered help from state agencies whose directors stood sweating beside him in 90-plus-degree heat and urged Illinois citizens to pray for rain. Illinois Farm Bureau President Philip Nelson thanked Quinn for traveling to Southern Illinois to see the devastation of the “most expensive corn and soybean crop we’ve put in the ground.” The situation was compounded by the early warm spring, Nelson added. Quinn raised concerns of livestock farmers whose pastures are burnt and whose corn may have high nitrate levels that are dangerous for
Gov. Pat Quinn, second from left, examines drought-ravaged corn near Waltonville in Jefferson County as Illinois Farm Bureau President Philip Nelson, right, describes the consequences to farmers. Looking on are Acting Illinois Director of Agriculture Bob Flider, left, and Jefferson County Farm Bureau director Donnie Laird, who hosted Quinn’s farm visit last week. (Photo by Kay Shipman)
use as livestock feed. “This can’t get any worse,” Donnie Laird told the governor before he addressed the crowd.
Quinn offered financial assistance programs through the Illinois Finance Authority (see related story on page 5), data and information through
state agency members of the state Drought Response Task Force, and a new comprehensive website {www.drought.illinois.gov}
for drought-related programs and information. “We are committed to working with you,” Acting Illinois Director of Agriculture Bob Flider told the farmers. Agribusinesses also are worried about the drought’s economic impacts, said David Vaught, acting director of the Department of Commerce and Economic Opportunity. “If farmers can’t sell grain, they won’t buy equipment,” he noted. In addition to the state’s response, Quinn urged federal action and called on Congress to pass the farm bill. The governor related his conversation that morning with U.S. Agriculture Secretary Tom Vilsack who encouraged Quinn to “plead with Congress” to pass the legislation. “We’ve got to work with our farmers. This is their hour of need, and we will not forget them,” Quinn said while surrounded by extended farm families.
Scale of drought reaches historic level No relief in sight BY DANIEL GRANT FarmWeek
The 2012 drought, which last week intensified at many locations around the state and nation, has surpassed the 1988 disaster in terms of scale. And the weather forecast
FarmWeekNow.com Comprehensive drought information is avilable online at FarmWeekNow.com.
for this week doesn’t offer much hope of relief from the hot, dry conditions anytime soon. The updated U.S. Drought Monitor last week showed 61 percent of the continental U.S. was in some form of drought. That’s the largest portion of
the country engulfed in a drought at one time since December 1956 when 58 percent of the country was in a drought, according to the National Climate Data Center. About 80 percent of the continental U.S. is abnormally dry after suffering through the 10th driest — and 14th warmest — June on record. Temperatures last week remained oppressive with highs topping out in the high 90s and triple digits across much of the Midwest. “It’s just burning everything up,” Lonnie Lewis, a farmer from Cave In Rock and president of the Pope-Hardin Farm Bureau, said of the heat. “I can’t believe the (crop) destruction that’s occurred in recent weeks. “A lot of corn is just falling down on its own,” he contin-
FarmWeek on the web: FarmWeekNow.com
ued. “There’s going to be very little corn and beans in this area.” Members of the Franklin
County Far m Bureau and a representative from the See Scale, page 3
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, July 23, 2012
Quick takes ESTATE ESCALATION ESCHEWED — Senate Democrat leaders are eliminating a proposal to increase taxes on wealthy estates, reportedly in order to shore up support within their ranks for President Barack Obama’s election-year tax plan. With no consensus in the Senate Democratic Caucus over prospective new estate tax levels, Senate Majority Leader Harry Reid (D-Nevada) told senators he’d drop the plan. Senators opted instead to focus on whether to extend Bush-era income tax rates at 35 percent for the top 2 percent of U.S. earners or let them increase to a 39.6 percent level. That leaves open the question of how lawmakers might address year-end expiration of current estate tax relief measures. Currently, the law allows heirs a $5 million individual estate tax exemption and a 35 percent estate tax rate, but inaction by Congress could mean a return to a per-2002 $1 million exemption and 55 percent rate. President Obama seeks to let Bush-era tax measures expire for households with income above $250,000, and extend the rest of the rates for one year. A vote on his “middle class” tax proposals was expected this week. WEATHER CHANNEL FARMER — Perry County Farm Bureau President Alan Jenkel, DuQuoin, gave July 14 viewers of “The Weather Channel” news of the drought gripping Southern Illinois. Jenkel answered questions about crop insurance and the conditions of his corn and soybean crops. He also was asked whether this was his first experience with drought since he started farming. He reported he had farmed during the 1988 drought. Jenkel delivered his drought report using Skype technology on his computer to the network based in Atlanta, Ga. He joked last week that he learned how to use the technology to conduct the interview only after he was contacted by the network. WATERSHED ISSUE — Taking aim at the Environmental Protection Agency (EPA) in support of a Farm Bureau member, the American Farm Bureau Federation (AFBF) last week filed a motion to intervene in a lawsuit addressing EPA authority to regulate poultry and livestock far ms under the federal Clean Water Act (CWA). AFBF filed in support of West Virginia poultry grower Lois Alt, who brought suit to challenge an order demanding that she obtain what AFBF deems an unnecessary and costly CWA National Pollutant Discharge Elimination System discharge permit. EPA’s order reportedly threatens Alt with $37,500 in daily fines for stormwater that may come into contact with dust, feathers, or dander on the ground outside poultry house ventilation fans, or small amounts of manure that may be present as a result of normal poultry farming operations.
(ISSN0197-6680) Vol. 40 No. 30
July 23, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@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) 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
the drought
Lawmakers push speaker to set farm bill debate BY MARTIN ROSS FarmWeek
A Western Illinois congressman joined last week in the call for House farm bill action, for the sake of both drought-ravaged farmers and consumers who depend on an ag safety net to maintain food price and supply reliability. In a meeting with Springfield Democrat Sen. Dick Durbin at the Sangamon County farm of J.D. Suddeth, Illinois Farm Bureau President Philip Nelson stressed the importance of timely House passage of a 2012 farm bill that bolsters future crop insurance and program revenue protections. Meanwhile, House Ag Committee member Bobby Schilling, a Colona Republican, helped spearhead a plea for floor time for the measure directed to House Speaker John Boehner (R-Ohio), Majority Leader Eric Cantor (R-Va.), Minority Leader Nancy Pelosi (D-Calif.), and Minority Whip Steny Hoyer (DMd.). More than 75 lawmakers have signed the letter, which argues: “This farm bill is needed for producers and those who rely on sound agriRep. Bobby Schilling culture policy and nutrition programs during difficult economic times.” Last week, Boehner, who voted against the 2002 and 2008 farm bills, stated “no decisions have been made on the farm bill yet,” though he said Cantor has been assigned to schedule debate on specific measures. Schilling was one of 10 Republicans and Democrats who crafted the Boehner letter, which cites agriculture’s support for nearly 16 million U.S. jobs and the farm bill’s role in providing nutrition program support to 45 million people. “Our farmers understand we’re $16 trillion in debt, and they’re willing to get rid of some things,” he told FarmWeek. “But the one thing they’re very clear about is the fact that we have to have this safety net in crop insurance in the event we have a disaster like what’s upon us right now. “These folks have to go out and buy equipment. They have a lot of assets they’re making payments on. If they have a complete failure on their land, they have to be able to produce next year. “If we don’t help them out, we’re going to pay at the grocery
Sangamon County farmer J.D. Suddeth, right, displays drought-related corn damage for U.S. Sen. Dick Durbin, a Springfield Democrat, left, as Illinois Farm Bureau President Philip Nelson looks on. Nelson and Durbin met at Suddeth’s Bradfordton-area farm last week to discuss the need for such things as timely congressional passage of a 2012 farm bill. (Photo by Adam Nielsen)
store, whether we’re buying flour, bread, what-have-you. It comes to the consumer at some point.” Compromise and consensus Nelson rejected the idea of merely extending the 2008 farm bill in the absence of House action, arguing “we’ll be right back discussing the same things a year from now,” possibly under a new administration and a shift in congressional makeup as well as heightened budget pressures. Other possibilities include moving the House plan directly to conference, bypassing floor debate, similar to the fashion in which House-Senate conferees recently reached compromise over a two-year highway bill, Nelson suggested. The House plan devises dualoption revenue programs designed to address the needs of Midwest growers and farmers in the South concerned about elimination of direct payments. Schilling conceded the “fine line” in drafting politically acceptable program provisions that assure final passage. The House proposal’s $16 billion in long-term nutrition program cuts may prove a major point of contention on the House floor and in conference. But Schilling argues proposed food stamp savings would be derived through more efficient program operation and stringent eligibility standards. “I won’t support anything that’s going to take one nutrient away from those who truly need it,” he pledged. “Our bill (the House version) closes the (program) loopholes, so the most vulnerable amongst us are taken care of and those folks who are abus-
ing the loopholes aren’t going to be able to do that anymore.” Policy and protection Even if the House bill makes it to the floor, some farm state lawmakers fear crop insurance could become a budget target now that direct payments are marked for extension. Schilling said many growers especially in the northern part of his district “are in a lot of trouble,” noting one farmer who expects to see 30 percent of his normal crop yield. During his meeting with Durbin, IFB’s Nelson praised USDA’s July 11 announcement of emergency measures for crop and livestock producers while pointing to the current drought as a “textbook example” of the need for a strong crop insurance program as the “underpinning” of a farm safety net. This season, Illinois Farm Bureau board member Bob Gehrke from Kane County has a Revenue Protection policy at an 80 percent coverage level. Given spotty area prospects, “I’m very glad I do,” he observed. Gehrke is concerned this year’s “huge” insurance loss claims could refuel legislative attacks on program spending, “even though that’s what insurance is for.” He has been forced by crop expectations to rethink nearterm equipment purchases but believes insurance coverage will “make me sleep a little easier” regarding 2013 operating funds. “I do know there are people who don’t have crop insurance up by us,” Gehrke lamented. “I wouldn’t want to be in their shoes.”
Page 3 Monday, July 23, 2012 FarmWeek
the drought
Sizzling conditions hurting meat, milk production Livestock feed supply shrinking The widespread drought so far this year has created a double-whammy for livestock producers. The hot, dry conditions have reduced productivity in herds and also burned up a large portion of available feed supplies, which is driving up input costs. The average live-hog weight in recent weeks declined from from 278 pounds to 273 pounds, according to Chris Hurt, Purdue University economist. “Pigs don’t like hot weather. They eat less,” Ron Plain, University of Missouri livestock economist, said last week at a
meeting in Bloomington hosted by the Illinois Pork Producers Association. “Given the forecast, (slaughter) weights are going to keep falling.” The National Oceanic and Atmospheric Administration seasonal forecast last week predicted the drought would persist or intensify through Oct. 31 in all of the Corn Belt with the exception of northern Wisconsin, northeast Minnesota, and eastern Kentucky. “During the hot and humid weather the first week of July our cows dropped around 10 percent on (milk) production,” said Kyle Koester, a dairy farmer from Dakota in Stephenson County. “Production has come back some and we currently are 3 to 5 percent off normal.” “Heat stress causes cows to
Agriculture in recent weeks has been dealt another blow by the drought as low river and stream levels have affected everything from barge traffic to irrigation systems. Barge operators on the lower Mississippi River must load vessels to less than full capacity to prevent them from running aground in the shallower water. Barge traffic in recent weeks has been interrupted from Cairo to Natchez, Miss. The Mississippi River at Memphis last week was just 6 feet above the record-low level recorded in 1988.
“We’ve got to load lighter here because (the barges) have to go down the Mississippi to get to New Orleans,” said Lonnie Lewis, president of the Pope-Hardin Farm Bureau, who operates a towing service on the Ohio River near Cave In Rock. “It’s going to cost (the industry).” Shippers are reducing the size of barge loads by about 25 percent, according to Lewis. The U.S. Army Corps of Engineers projected that without significant rain the lower Mississippi will drop to within about 2 feet of the record low. That would be a stark con-
BY DANIEL GRANT FarmWeek
produce less milk, in addition to other problems with health and reproduction,” said Thomas Overton, a professor
FarmWeekNow.com Listen to comments from Cimeron Frost about the drought’s impact on beef producers at FarmWeek-Now.com.
of animal sciences at Cornell University. Overton recommended farmers continue to implement cow-cooling strategies to help prevent heat stress. Koester noted his facilities are equipped with fans and sprinklers to keep the cows cool and maintain feed intake. Unfortunately, a heat dome is expected to cover most of the Corn Belt again this week. The conditions have burned
up a large portion of pastureland and sapped yield potential from most feed crops. A staggering 83 percent of pastures in Illinois last week were rated poor or very poor. “Increased temperatures have increased plant water use and exhausted limited soil moisture reserves,” said Dennis Todey, South Dakota State University Extension climatologist. Many livestock farmers, as a result, are struggling to find adequate feed supplies and in some cases water to maintain their herds. “Feed costs are going through the roof,” said Missouri’s Plain. “It’ll force downsizing in the livestock and poultry industries.” Every dime increase in the price of corn adds about $1.70
to the cost to raise a hog, Plain reported. Current futures prices suggest hog farmers could lose about $20 per head in coming months. Cimeron Frost with the Illinois Beef Association told the RFD Radio Network last week that some cattle feeders are losing $200 per head. “Sale barn (managers) are telling us there’s already been a big influx in the number of cows coming in every week (as some farmers are culling cows),” Frost said. December corn futures in recent weeks increased 55 percent while soybean meal futures climbed 24 percent. “Higher feed prices have to be absorbed,” Hurt added. “Losses in animal industries will be enormous over the next year.”
Low Mississippi River levels affecting barge traffic trast to last year when the river crested at near-record-high levels at some locations. The river last week was as much as 50 feet below the peak during last year’s flood, The Wall Street Journal reported. “It’ll affect the long-haul carriers more than anybody,” Lewis said. The low river levels obviously are the result of a lack of rainfall. Many locations in the midSouth are more than 10 inches below average rainfall totals so far this year while parts of Southern Illinois and southern Indiana are as much as 14plus inches below average rainfall. Add to that lowerthan-normal snowfall in the Northern Plains and Midwest
this past winter. The drought last week also prompted the Nebraska Department of Natural Resources to restrict irrigation activity. More than 1,100 farmers in Nebraska last week were ordered to halt irrigation because the rivers from which they draw water have dropped to low levels, Reuters news service reported. The order did not affect irrigation sys- A barge chugs upstream on the Mississippi Rivtems that draw er near St. Louis this month. Barge operators water from wells. — have reduced loading capacity on barges by Daniel Grant about 25 percent. (Photo by Daniel Grant)
Scale Continued from page 1 county’s Farm Service Agency last week participated in an aerial crop tour around the county. And a view from above the fields showed even more crop damage than some farmers imagined. Larry Miller, Franklin County Farm Bureau manager, estimated crop losses in his county last week at 60 percent for soybeans and 70 to 80 percent for corn. “While we remain more optimistic about soybean prospects than corn, soybean yield potential is beginning to decline as more time passes without enough water to keep the plants functioning well,” said Emerson Nafziger, University of Illinois crop systems specialist. Topsoil moisture last week was rated 98 percent short or very short and 2 percent ade-
quate while subsoil moisture was 96 percent short or very short and just 4 percent adequate. Crop conditions last week deteriorated statewide as the portion of crops rated poor or very poor slipped to 56 percent for corn and 41 percent for beans. A check around the country found crop conditions are as bad or worse in other states. The portion of the corn crop rated poor or very poor last week exceeded 70 percent in three states (Indiana, Kentucky, and Missouri). “I think this (drought) will be bigger and more devastating than 1980 or 1988,” Jules Willot, a farmer from Mexico, Mo., told FarmWeek. “There is more money at stake than ever before.” Glen Newcomer, a farmer
and certified crop adviser from Bryan, Ohio, said there are miles and miles of waist-high cornfields in his area. “Even if it rains, it’s beyond repair,” he said. “It’s just disappointing. We were positioned for a stellar year.” Sam Halcomb, a farmer from south-central Kentucky, said the extreme heat has been as detrimental to crops in his area as the lack of rainfall. “The thing about corn is when it gets over 100 degrees, the plants just start to give up,” he said. “We had fair pollination but the grains aren’t filling. It’s going to be way below average.” Unfortunately, the forecast this week calls for a hotter and drier-than-normal weather pattern to persist across much of the country, reported Brad Rippey, USDA meteorologist.
FarmWeek Page 4 Monday, July 23, 2012
the drought
A test strip of burned up corn is all that remained in this field near Vandalia in Fayette County last week after a farmer mowed down the rest of the water-starved crop. Test strips are neces-
sary for crop insurance purposes. Farmers are advised to contact their crop insurance agents before mowing or chopping fields ruined by the ongoing drought. (Photo by Ken Kashian)
Insurers amply ‘covered’ for drought losses BY MARTIN ROSS FarmWeek
The nation’s crop insurance industry and its customers should be able to weather this season’s drought losses, University of Illinois risk management specialist Bruce Sherrick told FarmWeek last week. With insurers anticipating crop claims that by some estimates could exceed $30 billion nationwide, Sherrick agrees “this could be a rough year for some insurance companies.” To an extent, that’s “the nature of the business,” the economist said. Sherrick stressed crop insurers themselves are protected by federal and, generally, secondtier private “reinsurance.” Those protections help assure policyholder losses will be covered in a timely manner,
despite the impact of heavy losses on company reserves. As a diversified “multi-line” insurance/financial services company, Country Financial “prepare(s) every year to cover potential losses from premium, reinsurance, and potentially, surplus (funds),” according to Country spokesman Chris Anderson. Given it’s reinsurance on federal crop policies this year, “we are risking less than 2 percent of our policyholder surplus,” and when loss levels exceed premiums paid, “we share the loss amounts with both private and government reinsurance agreements to ensure farmers collect on the insurance coverage they purchased,” Anderson stated. “The system is simply designed to distribute losses in
a very careful way, so that excess losses are generally borne by the government over the amount companies are exposed to,” Sherrick related. “The short version is, I don’t think farmers have anything to worry about, regardless of the size of the aggregate losses.” Some insurers may have reduced financial reserves from policy underwriting gains in part as a result of the current federal Standard Reinsurance Agreement (SRA). The agreement was rewritten in 2010, cutting federal reimbursements to companies by $6 billion over a 10-year period. However, today there are few small “standalone” approved providers, and larger companies represent most potential claims exposure, Sherrick noted. Further, the SRA also reduced
company exposure to more extreme losses, he said. For every dollar of premium that insurers write, they are required to prove the private financial backing necessary to cover catastrophic losses. Each year, USDA’s Federal Crop Insurance Corp. reviews and approves each company’s operations plan to ensure adequate capital is available. With dual government/private reinsurance in place, companies “won’t be exposed to more than their capital can stand,” Sherrick said. At the same time, this year’s expected claims volume could “strain the claims process a bit,” he warned, urging drought-affected farmers to consult with their agents or adjusters as soon as possible. Tom Zacharias, president of
the industry group National Crop Insurance Services (NCIS), sees 2011’s widespread weather-related losses and record $11 billion in loss payments, as a model for farmer expectations this season. In 2011, most payments were processed within 30 days of claims being finalized, Zacharias said. Some 5,000 certified insurance adjusters already are assessing crop damage nationwide, NCIS reported. More than 2,000 adjusters are expected to attend NCIS-sponsored summer training sessions that will focus on drought issues. Meanwhile, Country is including a guide aimed at ensuring prompt response for growers anticipating a major claim inserted into this week’s FarmWeek.
FSA approves 83 counties for emergency CRP release As of Friday, 83 counties were authorized for emergency harvesting of hay and/or grazing of certain Conservation Reserve Program (CRP) acres, starting Aug. 2, Farm Service Agency (FSA) State Executive Director Scherrie Giamanco announced. Additional counties
were expected to be added. The approved counties cover much of Central and Southern Illinois. Another tier of approved counties stretches across the state’s northern border. As of Friday, 14 counties had applied — but had not received approval — for authority to graze certain CRP acres before Aug. 2, according to Illinois FSA officials. That decision will be made by national FSA officials. Giamanco stressed that eligible farmers who are interested in emergency grazing or harvesting of hay on CRP acres must obtain approval from their county FSA staff before taking action. Those farmers also must obtain a modified conservation plan that includes haying and/or grazing requirements from the Natural Resources Conservation Service, Giamanco said. The hay harvest authorization will take effect Aug. 2, which is after the wildlife nesting and brood rearing season here, and is not to continue past
Aug. 31. The grazing authorization also will begin Aug. 2 and is not to continue after Sept. 30. Once approved for emergency hay harvest, farmers must leave at least 50 percent of each field or contiguous fields with standing grass for wildlife. Farmers cannot harvest hay and graze livestock on the same CRP acres. In addition, farmers are limited to one hay cutting and are not permitted to sell any of it. There will be a 10 percent CRP payment reduction based on the number of acres actually grazed or harvested for hay. Eligible farmers who are interested in grazing must not graze livestock on at least 25 percent of each field or contiguous CRP field, or graze not more than 75 percent of the stocking rate as determined by NRCS. Farmers who do not own or lease livestock may rent or lease the hay harvest or grazing privileges to an eligible livestock farmer. For more information, contact the local county FSA staff.
News media swarm Gov. Pat Quinn, Illinois Farm Bureau President Philip Nelson, and Jefferson County farmer Donnie Laird as they search for an ear of corn during Quinn’s farm visit. After searching several stalks, Nelson finally found a tiny ear that bore no kernels and handed it to Quinn who tucked it into his pocket. (Photo by Kay Shipman)
Extension to post drought information webinar online University of Illinois Extension specialists will offer a variety of drought-related information on a recorded webinar that will be posted online. The webinar was presented live last week. The topics include: harvesting methods for corn to be used for forage, pricing cornfields to harvest for cattle forage, nitrate concerns and methods to reduce nitrate levels in corn, early weaning of beef calves, cattle water requirements and water quality issues, and managing pasture during a drought. The recorded webinar will be posted online at {http://web.extension.illinois.edu/drought/}. U of I Extension drought information also may be accessed online at {drought.illinois.gov} by going to the “drought information” category and clicking on the U of I Extension link under “additional information.”
Page 5 Monday, July 23, 2012 FarmWeek
the drought
Programs offer loan guarantees, financial assistance for drought costs BY KAY SHIPMAN FarmWeek
The Illinois Finance Authority (IFA) and the Illinois Treasurer offer programs that may help farmers with additional financial stress related to the drought. Gov. Pat Quinn and IFA Executive Director Chris Meister announced four IFA programs during a drought news conference on the Jim and Donnie Laird farm in
Jefferson County last week. And low-interest disaster loans are available through the Illinois state treasurer. “Farmers whose crops have been reduced or even completely destroyed by drought may need assistance; these loans can bridge the gap until insurance checks come through,” said Illinois State Treasurer Dan Rutherford. IFA will partner with local
Challenging season highlights labor policy challenges BY MARTIN ROSS FarmWeek
Concerns about drought in the Corn Belt merely emphasize that immigration and ag labor policy issues impact the Midwest as well as the South and the West Coast. That was one of the take-homes as farmers and ag labor groups gathered in Chicago to discuss “foreign-born labor” and agriculture. The joint symposium by the Oak Brookbased Farm Foundation and the ag advocacy group AGree, was designed to bring together interests “who aren’t always on the same page,” Farm Foundation President Neil Conklin told FarmWeek. According to the groups, “the immigration system in the United States is broken, profoundly affecting agriculture and other key economic sectors.” While ag labor issues commonly are associated with fruit and vegetable production, symposium experts stressed foreign-born labor plays a key role in livestock and grain production, as well as food processing. Illinois Farm Bureau’s Resolutions Committee is mulling proposals that support legislation to establish an improved federal ag guest worker program and permanent “employment-based” immigration visas for laborers with a demonstrated work history and who can pass “an appropriate background screening.” “Too often, the labor issue’s been framed as a FloridaCalifornia, fruit-and-vegetable issue, but it really is a broader issue,” Conklin said. “It’s clear, certainly from the perspective of dairy producers — and not just large dairy producers — that there’s a big problem here in terms of access to what we’re calling a stable, legal workforce.” Participants in the Chicago symposium offered several key points in addressing current and future labor needs: • A clear legal framework is needed to provide certainty to ag employers and a secure environment for seasonal-temporary workers and their families. • Agriculture has unique labor supply/demand challenges due in part to difficult working conditions, short crop harvest windows, and specialized skill requirements. The drought’s impact in reducing harvest expectations — and thus hired labor needs — points out the need for flexible visa provisions that might enable workers to move between ag employers as regional labor demand dictates, Conklin said. Further, requirements under the existing H-2A ag visa program are “so cumbersome that you have to be a relatively large employer to manage them,” he argued. “There’s a general feeling that whatever solution we get to, getting the labor to where it has to be when it has to be has to be a part of the solution,” Conklin said. • Education is needed to help the general public and decision makers understand labor issues and make informed public policy decisions. • Policy reforms will be difficult to achieve unless workers and farmers speak with a single voice. Conklin sees optimism that some “political opportunities” for ag labor reform might arise in 2013, but notes continued differences over such issues as treatment of seasonal ag workers.
banks to activate programs statewide to support eligible farmers. Those programs include: • Agricultural Restructuring Debt Guarantee Program, which provides an 85 percent guarantee for up to 30 years on local bank loans up to $500,000 that are used to consolidate existing debt and spread payments over a longer period; • Working Capital Guarantee Program, which provides an 85 percent guarantee for up to three years on a local bank loan up to $250,000 used for input costs related to planting and raising agricultural crops; • Agricultural Loan Participation Program, which provides IFA purchase of up to $500,000 of a customer’s bank loan to reduce the interest rate with a loan term
of a maximum 10 years; and • Rural Development Loan Program, which provides loans under a relending program through USDA Rural Development. Loans range from $50,000 to $250,000 for economic development in towns with populations of less than 25,000. For more information, contact your local lender or the IFA at {www.il-fa.com} or call IFA offices in Peoria at 309-495-5959, in Mt. Vernon at 618-244-2424, and in Springfield at 217-782-5792. The state treasurer offers low-interest disaster recovery loans with participating lenders. The maximum interest rate ranges from 2.20 percent to 2.89 percent, depending on the length of a loan between one and five years. Loans are available for
qualified borrowers who need help covering immediate costs that eventually will be covered by insurance and to help cover costs if there is no insurance. The interest rates are low because the treasurer’s office “buys down” the interest rate by depositing money at a discounted rate into eligible financial institutions. Many lenders across the state have agreed to work with the treasurer to make the low-interest loans available. For more information or an electronic “Disaster Recovery” application, go online to {www.treasurer.il.gov} or call the Disaster Recovery Hotline at 866-523-0641.
FarmWeek Page 6 Monday, July 23, 2012
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We finally got some rain! Wednesday night was our lucky night as a thunderstorm rolled through giving us 1.2 inches of much-need rain. It will help most of our crops a lot, but some of the corn is beyond help. It also will help most of the beans, but the spider mites have taken a heavy toll and most people are treating their fields to stop the spread of these dry-weather insects. There were some 50-plus mph wind gusts with this storm that blew down some trees and corn, mostly green snap, with some root lodging. The southwest part of the county wasn’t as lucky this time and received only 0.3 of an inch. Corn pollination is very sporadic, even in the fields that look good from the road, with several blank stalks. Pete Tekampe, Grayslake, Lake County: We finally got some measurable rain in Lake County. We received 2 to 4 inches Wednesday night and Thursday morning. Too little, too late for the corn. Corn at best is a 40 percent crop if we get continued rains. Beans looked a lot better Friday morning and should make a good crop if the rains continue. Winter wheat was great with yields of 60 to 90 bushels per acre. Hay is very short. More extreme heat in the 90s and 100s is forecast for this week. We have one thing going for us though this week — it’s the Lake County Fair, and it always rains during the fair. See you at the fair. Leroy Getz, Savanna, Carroll County: Some scattered rain fell in the county last week. I had 0.6 of an inch from two different showers. Some areas got nothing and some nearly 2 inches. Some are still spraying for beetles. Producers are trying to protect whatever crop is going to survive the heat and the drought. Hay cuttings vary with one dairy farm now harvesting its fourth crop. Growing degree units total 1,804, which is about 400 ahead of last year. Ryan Frieders, Waterman, DeKalb County: On Saturday, July 14, we received 0.3 of an inch of rain. The extreme temperatures throughout the past week took a toll on the crops. Pollination is almost complete in the corn, but time will tell if the kernels will fill out. Soybeans continue to flower and are beginning to set pods. Late Wednesday night, we received another 0.5 of an inch of rain. By Thursday morning the ground was dry and it looked like it never rained. Larry Hummel, Dixon, Lee County: Pollination of the corn crop, for the most part, has wrapped up here in Northern Illinois, although I can still smell pollen at times. Most fields got pollinated OK, except for a few that were under extreme stress caused by rootworm feeding and some field edges that didn’t get good coverage from an aerial insecticide application. We were fortunate enough to get some showers on Wednesday night that left behind anywhere from 0.4 of an inch to 1.1 inches on most of our fields. For now, I’m going to stay with half a crop as a worstcase scenario for corn yields. With this rain and a forecast that doesn’t include any 100degree days, I should be able to raise that by next week. Joe Zumwalt, Warsaw, Hancock County: The hot and dry weather continues to shrink an already small crop in Western Illinois. In the last week, some areas received up to 3 inches of rain. But most of the area only found their rain gauge with a few tenths in it, and even more received no rainfall. The corn is stressing excessively now and kernels are being aborted rapidly. The soybeans are amazingly hanging in there, but I am beginning to see some stress from spider mites. Several producers have been baling a third crop of hay, and needless to say, it is a greatly reduced crop. We are looking forward to holding a river issues meeting in the area this week (Monday) and having the opportunity to engage many elected officials and government agencies.
Ken Reinhardt, Seaton, Mercer County: Mostly disappointing rainfall for the week with just a trace at home. There was as much as 1 inch in the northeast part of the county. The areas where the two big June rains were lighter are showing up, but overall we can’t complain. On Friday morning old-crop cash beans were at $18.07; corn, $8.22. Ron Moore, Roseville, Warren County: No rain to report again. This has been a recurring event for most of this summer. Corn and soybeans are deteriorating every day that we don’t get rain. We are still spraying soybeans with fungicide and some fields for Japanese beetles and bean leaf beetles. With these high prices, we are trying to save every pod we can. The hay crop may have seen the last harvest for this year. It has stopped growing just like the grass in my pastures. The creeks will be dry this week and we will start to bring cattle home from pastures instead of hauling water to the them. The last time that happened was in 1988. I am hoping for better yields than we had in that year. Jacob Streitmatter, Princeville, Peoria County: Hot and dry across the area. No rain in my area to speak of. There have been a few sporadic showers that seem to happen in the same area all summer, but not in my area. The corn is cooked with many barren stalks and a lot of ears aborting tips. Early April-planted corn looks as if it is holding on better. Soybeans are trying their best, but they look really tough in the afternoon of a 100-degree day. Spider mites have found their way into some fields. There will be a lot of cornfields that will struggle to make 50-100 bushels per acre. Time will tell. Ron Haase, Gilman, Iroquois County: On July 14, a couple of our farms had 0.5 to 0.6 of an inch of rain with the rest of our farms receiving 0.1. On Thursday, all of our farms received 0.2 of an inch of rain. Sixty percent of our corn began pollinating last week during the heat. We were hoping those showers would have left more to help the corn through this important stage. Many cornfields in the area are in the R3 (milk) growth stage. Corn development ranges from the VT (tasseling) growth stage on up to the R4 (dough) growth stage. Most soybean fields are at the R2 or full flower growth stage. There are some pods visible now on the lower nodes. The local closing bids for Thursday: nearby corn, $8.35; newcrop corn, $7.77; fall 2013 corn, $5.76; nearby soybeans, $17.58; new-crop soybeans, $16.33; fall 2013 soybeans, $12.66. Our boys are also excited to go visit the Iroquois County Fair. Brian Schaumburg, Chenoa, McLean County: We got rain in a few square miles around here last week. My neighbor, we now call him Noah, asked me to come witness the dumping of his rain gauge as even a 6-inch downpour yielded no evidence of puddles! Three miles away, there was no rain. This water will benefit soybeans, but corn, in many cases, is beyond reprieve as most plants did not pollinate in the heat. Ear tip back will start soon. Keep your chin up! Corn, $8.28; fall, $7.73; soybeans, $17.45; fall, $16.22; wheat, $8.85. Steve Ayers, Champaign, Champaign County: Our “five minutes before it’s too late” countdown is now minus 2 though spotty rains fell throughout the week. It was rain to the north of us, rain to the south of us, east of us, and west of us and we had a few hundredths. It cooled down a little on Friday, but triple digits are expected by today. Pollination was spotty with voids on the ear and at least one quarter of the ear is in jeopardy if we don’t get some moisture soon. Beans are blooming and starting to pod. Farmers with cattle are testing for nitrate with plans of chopping. We are scouting for spider mites and occasionally we will see an Ag-Cat or chopper in the air. Water hemp is starting to poke through the soybean canopy. The 160th Champaign county Fair started Friday, so see you at the fair!
Wilfred Dittmer, Quincy, Adams County: It looks like the year 2012 will go down in the history books as very different from day one. From the dried up corn and bean fields to the withered pastures and yards, every day is another day drier and there is no rain in the long-range forecast. Our gauge did collect about 0.3 of an inch of rain early Thursday morning during a brilliant lightening show. It normally rains during fair week (Thursday-Aug. 1) in our county so just maybe? Carrie Winkelmann, Tallula, Menard County: As I visited young farmer friends in Southern Illinois’ Perry County last weekend (July 14-15), I had a look into the future. The landscape there is desolate, and we are following directly in those footsteps. Our rainfall for the growing season so far goes like this: April, 3 inches; May, 1.43 inches; June, 0.4 of an inch; and so far in July, 0.5 of an inch. Definitely not enough to sustain and produce a good crop. I am still hoping for some rain to help the beans, but I do not think anything is going to help the corn. I am thankful, though, for good farming friends who can stay somewhat positive in these trying times. Tom Ritter, Blue Mound, Macon County: The weekend of July 14-15 brought up to 0.6 of an inch of rain to some, but most received 0.1 of an inch or less. The extreme heat of last week continued to take a toll on the corn and for the first time, soybeans showed stress. Some of the corn has fired half way up or farther and there are more reports of bare stalks or poor pollination. Most stopped spraying fungicides a few weeks ago not wanting to invest any more in a crop that was rapidly going downhill. There have been some reports of aphids due to the dry conditions, but there has not been a lot of spraying yet. Harvest will be much earlier than normal, but few will be willing to pay drying charges associated with early harvest. There is also concern dry down will be slow due to the dead stalks. Todd Easton, Charleston, Coles County: And the heat goes on in Coles County for yet another week as regular 100degree days are finishing off the cornfields. Walking out in the fields, I am finding some corn on the ears (miraculously), but it is not nearly as much as they think it will be in Chicago. At this point, it is too late for improvement. Soybean fields are still where they were back in June waiting to set pods and refusing to do it until they get substantial water. With the weather pattern of this summer not giving up, producers are coping with the possibility of a total loss in the bean fields. For farmers this year, it’s the same as a certain baseball team’s fans: “Maybe next year.” Jimmy Ayers, New City, Sangamon County: We actually received 0.6 of an inch of rain on Saturday, July 14. A half mile down the road none fell. I kept mowing while watching the rain on one side of our place and not on the other. Some spotty places got up to 1.5 inches. The majority of the crop is still suffering badly. The cooler temps and a small amount of rain in the area have taken a little bit of stress off of the corn and it’s not rolling near as badly as it has in the past. News organizations are looking for stories on the poor crops. Doug Uphoff, Shelbyville, Shelby County: Nothing’s changed for the good; it’s only worse crop-wise. Yield checks show from 80 bushels per acre to nothing. Small areas that have gotten rain will be better. The markets are up. Enough negativity and now for something positive. The Shelby County 4-H Fair was last week. It was my youngest son, Isaac’s, last sheep show, and my niece, Sydney’s, last horse show. I’ve been announcing at the show arena since 1995 when Grandpa handed me the microphone after he had announced for decades. Friends and family are what the fair is really all about. We need 4-H because it does take a community to make a better county. More about the crops next week.
Page 7 Monday, July 23, 2012 FarmWeek
CROPWATCHERS David Schaal, St. Peter, Fayette County: Still hot, still dry, and it sounds like still more of the same on the way. The corn crop in areas is toast and with another week of 100-plus degree temperatures, beans are going to be on the same path.
Jeff Guilander, Jerseyville, Jersey County: Now the Calhoun peach crop is starting to go bad. They have to pick the same number of peaches for half the crop. In terms of corn, I think half a crop sounds good. The consensus is that 100 bushels per acre is the best corn will do if it rains in the next few days. If it doesn’t (and it is not supposed to), then even that will be too high. Beans are stalled out. They quit growing and there is very little flowering taking place. Five years from now this will be a year to remember. Right now, it is one we would like to forget. Dan Meinhart, Montrose, Jasper County: Showers moved through the area on Saturday night, July 14. Very isolated areas received up to 2.5 inches. Most people received little or no precipitation. Monday evening, July 16, showers moved through again with some people getting up to 1 inch. But again, most people received little or no rain. The temperatures have been running in the high 90s or low 100s. The weekend was expected to be a little cooler with higher temperatures returning this week. No precipitation is in the forecast. The mid-May-planted corn is deteriorating rapidly. The beans have stopped growing and are deteriorating also. Silage chopping is the only activity to speak of.
Dave Hankammer, Millstadt, St. Clair County: New week, same story. Temperatures returned to the triple digits putting additional stress on an already weather-worn crop. No rain fell for the week, although I heard of a rumor of an isolated shower in a small area. Some hay was made since my last report, but it appears some farmers are delaying cutting hay until a shower of rain moves through to assure another growth of alfalfa. Local grain bids are corn, $8.17; soybeans, $17.73; wheat, $8.88. Rick Corners, Centralia, Jefferson County: If Illinois were a chicken, I think we’d be the part that goes through the fence last. Places around here had a few showers and a few places even had a few inches of rain, but we didn’t even get a sprinkle. Not too far away, I saw green grass. I almost stopped to frolick in it, but figured someone would call the men in the white coats. I won’t mention the corn anymore, as it passed away last week. Dean Shields, Murphysboro, Jackson County: We went another week without much rain, but we had some spotty rains. If you were lucky to be underneath those, you may have gotten 0.3 to 0.5 of an inch of rain. For the most part, Jackson County didn’t receive much rain. I didn’t receive any. Everything is just like last week and deteriorating more. The corn conditions are worsening. The beans are struggling to hang on. All we need is water and that would fix all the problems. We are waiting for a rain, and that’s all we can do. Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com
Kevin Raber, Browns, Wabash County: Scattered showers fell this past week and some places were lucky enough to get a good rain. Most places got little or no rain. The heat and humidity made outside work uncomfortable. The Wabash River is close to record low levels — the lowest it’s been since 1977. The Wabash County 4-H Fair starts this week. I hope everyone will help support our young people, who have spent many hours on their projects. Randy Anderson, Galatia, Saline County Not much to say other then we are one week closer to putting this crop behind us. The mood around the countryside is like sitting in a classroom when all your friends got up to go out and play. County fair is the main thing this week for us here. I wish good luck to all the 4-H’ers and their parents, and maybe some cooler weather. Crop conditions? No comment on that. The question that always gets asked when I go to town is, “Do you have crop insurance?” I say, “Yes.” Then they say, “How do you look at the crop each day?” and I say, “because of my faith that tomorrow may be better than yesterday.” Ken Taake, Ullin, Pulaski County: It was another week of the same — hot and dry. We’ve had a few scattered showers in the county, but we received less than 0.1 of an inch on our farm. I’m afraid if it doesn’t rain soon, soybeans are going to go the way of corn. It continues to be another frustrating year. I can’t remember a year that was this dry for this long. Plot tours are about to start in the area. It will be interesting to see what they say about the crops. Please remember things could always be worse.
Meat packers leave sow housing choice to farmers — for now BY DANIEL GRANT FarmWeek
The pork processing industr y has been inundated in recent months by customer requests to source pork from farms that don’t use sow gestation stalls. But it is unlikely pork producers will be forced to change their housing systems any time soon. Representatives of the meat processing industry last week at a meeting hosted by the Illinois Pork Producers Association (IPPA) in Bloomington said they will attempt to meet all customer demands. But, at least for now, producers will continue to have a choice of housing systems used in their operations. “Cargill has no intention of doing that (requiring producers to convert to stall-free o p e r a t i o n s ) ,” s a i d A n g i e Geiman, pork regional supply leader at Cargill. “The option we’re taking is to see what signals the market sends and respond accordingly.” Food retailers and restaurant chains that have unveiled various policies this year to phase out pork purchases from farms that use gestation stalls include Bon Appetit, Burger King, Compass Group, C r a c k e r B a r r e l , D e n n y ’s, Kroger, McDonald’s, Safeway, S o n i c, T i m H o r t o n’s, a n d Wendy’s. However, Geiman ques-
tioned where the various food companies will source stallfree pork. A recent study conducted at the University of Missouri found that only 17.3 percent of sows spend a portion of gestation in open pens. “We can’t ignore our customers,” Geiman said. “But some of their statements and goals are very unrealistic. The supply (of stall-free pork) is just not there.” Geiman said Cargill will attempt to educate customers and meet demands for stallfree pork, but there will be a cost associated with that request. She believes stallfree pork could become a process-verified program in the industr y that would include a cer tification and auditing process and car r y with it premiums. Jesse Dohlman, procurem e n t a n a l y s t a t Fa r m l a n d Foods, said Far mland will attempt to meet all customer demands as well. However, he said, “We’re going to end up asking a price for that.” Overall, it would cost the U.S. pork industry an estimated $3 billion to convert all sow housing from gestation stalls to open pens. “ T h e r e i s s o mu ch c o s t involved, it would shrink the pork industry considerably,” Dohlman said. “We’re committed to be an industry leader in animal wel-
fare,” he continued. “But our goal is not to promote one (housing system) or the other.” Geiman agreed that either housing system can be successful. Animal welfare comes down to the management of each system and animal husbandry. Phil Borgic, former IPPA president and a pork producer from Nokomis, said he has
met with five packers and none so far has implemented openpen gestation programs. “It could be 10 years down the road,” he said. Borgic advised his fellow pork producers to be proactive, though, when it comes to planning for the future. He said farmers can retrofit facilities for pen housing. “ Tr y t o p l a n a h e a d a n d
think of what you want your far m to look like in the future,” Borgic said. “As you add facilities or decommission them, you can (retrofit or change housing systems) cheaper now than if you wait until the last minute.” Borgic believes most of the cost associated with converting housing systems will wind up in the laps of producers.
GETTING READY FOR THE FAIR
Bria Koester, Dakota, brushes one of the six Holstein dairy cows she showed recently at the Stephenson County Fair while her father, Dan, steadies the cow. Bria has been showing dairy cattle since she was 3 years old. The Koester family milks 275 head of cattle three times a day. (Photo by Ken Kashian)
FarmWeek Page 8 Monday, July 23, 2012
TRADE
Senate panel clears Russian relations measure BY MARTIN ROSS FarmWeek
The U.S. Senate Finance Committee has unanimously approved a draft bill that would establish permanent normal trade relations (PNTR) with Russia. The American Soybean Association (ASA) encouraged the Senate to take up the bill as quickly as possible, and called on the House to move forward with a companion measure “in order for the U.S. to capitalize on Russia’s accession package to the World Trade Organization (WTO).” Finance Committee approval has raised hopes for the measure making it to the president’s desk by August, when Russia formally enters the WTO. PNTR would offer U.S. producers “more certain and predictable market access” as a result of Russia’s WTO commitment not to raise tariffs on imports above current negotiated rates and to apply food safety standards to imports “in a uniform and transparent
manner,” American Farm Bureau Federation President Bob Stallman said. With more than $770 million in meat, poultry, egg, and dairy imports in 2011, Russia is a key market in moving U.S. soy products, ASA noted. Further, the Russian government is implementing a $1 billion plan to establish and maintain domestic beef production, a potentially positive harbinger
for U.S. feed grain/soybean exports. However, Russian officials said tariffs on meat imports into Russia will remain in place until 2020. U.S. Meat Export Federation President Philip Seng argues Russian PNTR is vital to assuring U.S. soy and meat exporters surer market footing. Seng notes the importance of Russia to the U.S. as a major
oil producer and believes growing national efforts to address widespread corruption is a positive step in creating a more favorable business environment. “Russia is really one of the least transparent countries in the world,” he nonetheless told FarmWeek. “It’s quite difficult to deal with because of its lack of transparency and its kind of capricious nature of doing things.
“There’s not a lot of understanding about how Russian decisions are made. We talk about the rule of law. They deal more in reciprocity: ‘If we’re going to give you something, we have to get something.’ “The more Russia can be brought into the world body and have to conform to the law and (trade) norms, the better it’s going to be for all of us.”
IBA names Blossom new executive vice president BY DANIEL GRANT FarmWeek
Reid Blossom, director of industry relations and youth programs at the Alabama Cattlemen’s Association (ACA), last week was named the new executive vice president of the Illinois Beef Association (IBA). He officially will begin work with IBA on Aug. 1. “IBA has some of the best and most involved volunteer leaders in the country,” Blossom told FarmWeek. “It’s going to be a good group of
people to work with.” Blossom grew up on a cow/calf operation in Mississippi and was active in 4-H liveReid Blossom stock showing and judging. He earned a communications degree at Mississippi State University, where he was on the 2003 livestock judging team. Blossom has worked for
ACA the past eight years. ACA is one of the most active cattle associations in the country with about 11,200 members. IBA by comparison currently has about 1,700 members. “(ACA) has been very successful building membership,” said IBA President Jeff Beasley. “We hope Reid can take what he learned there and bring it to Illinois. We think there is potential here to expand membership and services.” Blossom was interested in coming to Illinois due in part to its rich ag history and diverse cattle industry, which includes commercial cow/calf operators, seedstock operators, backgrounders, stockers, a strong junior cattle show circuit, feedyards, and a packing industry. Blossom and his wife, Emily, have a 19-month-old son, Sam, and plan to move to Springfield next month. “We’re excited to move to that part of the country,” he said. Their first public appearance will be at the Illinois State Fair Aug. 9-14, where Blossom plans to attend the cattle shows and be available at the Ribeye Corral.
Blossom succeeds the late Maralee Johnson, who worked for IBA for 23 years, including the past 13 as executive vice president, until her death in March.
Auction Calendar
John and Julie Gross, DAMIANSVILLE, IL. Mark Krausz Auction Service. krauszauctions.com Sat., Aug. 4. 12 p.m. Fulton Co. Land Auction. Ione Hamman Est., LONDON MILLS, IL. Lowderman Auction & Real Estate. www.lowderman.com Wed., Aug. 8. 6 p.m. Madison Co. Land Auction. Eckart Family Members, COLLINSVILLE, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com Thurs., Aug. 9. 10 a.m. 80 Acre Farmland Auc. Walter “Skip” Shaw, GIBSON CITY, IL. Bill Kruse, Auctioneer. Thurs., Aug. 9. 10 a.m. 2 80 Ac. Tracts of Farmland. Clarence Cox Estate, GIBSON CITY, IL. Bill Kruse Auctioneer. Thurs., Aug. 9. 10 a.m. Farm machinery. Lee and Cheryl Younker and Danny and Peg Geiss, PEOTONE, IL. Richard A. Olson and Assoc. richardaolson.com Thurs., Aug. 9. 7 p.m. Christian Co. Farmland Auc. Jeff and Helen Rhoades Estate, ASSUMPTION, IL. Wm. Beck Auction & Realty. Schroeder/Huber LLC. wmbbeck@ctiwireless.com or www.schroederhuber.com Thurs., Aug. 9. 2 p.m. Moultrie Co. Land Auction. CHAMPAIGN, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com
Tues., July 24. 9 a.m. Farming Eq. Dale and Joan Morton, TRILLA, IL. Schmid Auction and Realty Co. www.schmidauction.com Tues., July 24. 10:30 a.m. Land and Gravel Pit Auction. Dan and Paula Ellberg, FORRESTON, IL. www.lennybrysonauctioneer.com Wed., July 25. 1 p.m. Winnebago and Ogle Co’s Land Auction. Held at Monroe Center Fire Station. murraywiseassociates.com Sat., July 28. 10 a.m. DeKalb Co. Farmland. Karrie Ruetten and Kelly Barto, WATERMAN, IL. Rediger Auction Service and Brummel Realty, LLC. www.rickrediger.com or www.brummelrealty.com Sat., Aug. 4. 10 a.m. Farm Eq. Auc. Bob and Jan Zarn, STOCKTON, IL. Jim Calhoun, Auctioneer. www.calhounauction.com Sat., Aug. 4. 9 a.m. Semi-Annual Washington Co. Farm Machinery Auction. NASHVILLE, IL. Schaller Auction Service. www.auctionzip.com Sat., Aug. 4. 10 a.m. Estate Auction. Howard J. Gilles Estate, KICKAPOO, IL. Col. Gail Cowser and Col. John H. Bliss. www.biddersandbuyers.com, www.cowserauction.com or www.illinoisauctioneers.org Sat., Aug. 4. 10 a.m. Huge Auction.
Tuesday: • Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development • Ryan Whitehouse, government and public affairs director for the McLean County Chamber of Commerce • Ken Eriksen, senior vice president of Informa • Jim Fraley, Illinois Milk Producers Association manager • Dave Fischer, dairy educator Wednesday: • Mark Gebhards, IFB executive director of governmental affairs and commodities • Josh Darr, Chesapeake Meteorology • Darrel Good, Extension specialist and professor at the University of Illinois • Tom Dorr, consultant with the U.S. Grains Council Thursday: • Monica Stevens, IFB Young Leader chairperson • llinois Soybean Association representative • Sherry Hutson, author • Brad Roberts, marketing communications manager with Monsanto Friday: • Sara Wyant, AgriPulse publisher • Alan Jarand, RFD radio director
Page 9 Monday, July 23, 2012 FarmWeek
WIND ENERGY New ISU study
State’s largest wind farms pump billions into rural economies
BY KAY SHIPMAN FarmWeek
Wind energy generates tens of millions of dollars in property tax revenue and landowner payments annually and spurs economic activity, according to an updated economic study released last week by Illinois State University’s David Loomis (ISU) Center for Renewable Energy. The “Economic Impact: Wind Energy in Illinois” study examined the impact of the state’s 23 largest wind farm projects with generating capacity of more than 50 megawatts. Those wind farms are expected to generate $5.98 billion in economic benefits over the 25-year life of the turbines, reported David Loomis, an ISU professor and the center’s director. However, new wind farm projects are in limbo because the federal wind energy production tax credit (PTC) is set to expire in December, noted Loomis and several other speakers during last week’s sixth annual state Wind
Power Conference. “It’s important for decision makers to be educated about the economic impacts” of wind energy projects, Loomis said. The PTC, which has been in place since 2005, provides a tax credit of 2.2 cents per kilowatt-hour of generated electricity for wind developers. Given the location of the wind farms, it is rural economies that gained many benefits, according to the study. The 23 projects generated: • $28.5 million in annual property tax revenue, with school districts being the largest recipients; • $13.03 million in annual payments to landowners; and • 211 local jobs and $16.52 million annually to local economies after projects began operating. During construction, the 23 projects created 2,412 new jobs and pumped $217 million into the local economies. McLean County leads the state with 546 megawatts or 16 percent of the state’s wind farm capacity. LaSalle County ranks second and Lee County third. Nationwide, Illinois ranks fourth with 3,334 megawatts
DATEBOOK July 24 University of Illinois Dixon Springs Agricultural Center Beef Day, 5 p.m., Simpson July 25 Illinois Farm Bureau Commodity Conference, Marriott Hotel, Normal. July 26 University of Illinois Brownstown Agronomy Research Center Agronomy Day, 8:30 to 11:30 a.m., Brownstown. Aug. 1 Southern Illinois Beef Conference, 8:30 a.m., Applied Science Center, Rend Lake College, Ina. Registration deadline July 25. Go online to {http://web.extension.illinois.edu/dsac} or call 6180695-4917. Aug. 2 University of Illinois Dixon Springs Agricultural Center Agronomy and Hor ticulture Field Day, 9 a.m. to noon, Simpson. Aug. 9-19 Illinois State Fair, Springfield. Aug. 16 University of Illinois Agronomy Day, 7 a.m. to 2 p.m., Crop Sciences Research and Education Center, Urbana. Aug. 24-Sept. 3 DuQuoin State Fair, DuQuoin. Aug. 28 Meet the Buyers event, Highland Community College conference center, Freepor t. Registration deadline Aug. 24. Call 815-235-4125.
One of the state’s 23 largest wind farms generates millions of dollars in annual property tax revenue and payments to landowners while creating permanent jobs, according to a new Illinois State University study. (FarmWeek file photo)
of installed wind generation. The wind energy industry also has spread to the state’s manufacturing sector. A total of 28 facilities manufacture wind turbine components in Illinois. Another 13 global or U.S. headquarters of major wind power companies are located in the Chicago area, according to the Environmental Law and
Policy Center. “There’s a hub in Illinois to attract other companies here,” Loomis said. Some existing manufacturing companies retrofitted to tap into the wind turbine market. Ingersoll Machine Tools, based in Rockford, used a $5 million state grant to upgrade and retrofit equipment to man-
ufacture turbine rotor hubs. The switch created 81 new jobs and retained another 18, said Alyson Grady with the Illinois Department of Commerce and Economic Opportunity. A copy of the 2012 economic report is available as a PDF at {www.RenewableEnergy.ilstu.edu} under new reports.
FarmWeek Page 10 Monday, July 23, 2012
energy
Drought challenges underline biomass fuel value BY MARTIN ROSS FarmWeek
Planting hardier energy crops on marginal lands could offer corn growers and ethanol producers an environmentally beneficial hedge against production-supply risk. So says Iowa State University agronomist Ken Moore. He is a partner in a USDAfunded project, Sustainable Bioenergy Production for the Central U.S., that focuses on prospects for growing energy crops such as perennial grasses on “economically or environmentally marginal” farmland. Candidates include big bluestem, Indian grass, switchgrass, and other species native to the Tall Grass Prairie, Moore told FarmWeek at last week’s third Pan American Congress on Plants and Bioenergy in Urbana. Illinois “already has
made a substantial contribution to bioenergy” via Cave In Rock switchgrass from the Shawnee National Forest. Energy plantings in river bottoms could serve as buffer strips to “sequester” ag chemicals and prevent movement of sediment into water supplies, he said. Moore suggests use of energy crops could “make the entire cropping system in the Midwest more sustainable than it has been in recent years.” Moore encourages Congress to support a program that would help move Conservation Reserve Program acres into energy crop production, offering growers a new profit opportunity while averting the possible environmental impact of reactivating vast acres of
row-crop production. “In a year like this, as we experience drought through much of this region, I’d anticipate less of a (yield) knock on these species than on corn and soybeans, just by virtue that they establish very deep root systems,” he added. “Most of these (marginal) lands tend to be located near riparian areas with a bit more water flow. Yield might be knocked this year, but probably not to the extent of a row crop.” The USDA project is looking at adapting cellulosic species to thermochemical processing, which can break down a wider variety of feedstocks than use of biological enzymes. The ideal result
would be “drop-in” fuels that can be pumped directly into engines without gasoline blending, Moore said. While it’s beyond the scope of Moore’s current work, he suggests corn stover will be “the predominant bioenergy feedstock” in states such as Illinois, Indiana, and Iowa. Given the diverse benefits of biomass ethanol development, Moore argues a scaleback in biofuels targets under the federal Renewable Fuels Standard (RFS) would be “a tragic mistake.” A bill by Rep. Jeff Flake (RAriz.) would direct the U.S. Environmental Protection Agency to require fuel suppliers to blend only the amount of cellulosic ethanol currently being produced in the U.S., despite projections of substantial biomass-based production coming on-line by 2014. That measure would dis-
courage investment in advanced biofuels research and development of and farmer entry into a potentially profitable new enterprise, American Farm Bureau Federation energy specialist Andrew Walmsley warned. Moore credited the RFS with an “exponential increase in productivity in (corn) ethanol” over the past several years. “To stop now, when we’re halfway there, is crazy,” he said. “I think this reflects an interest by some industries to create opposition, to create some misinformation about the process. The RFS has been amazingly successful. “This is really important not only for agriculture in the Midwest — it’s important for the country, the energy security of the country, the environmental health of the country. We need the Renewable Fuels Standard.”
New sugar technology Learn to Shine with IFB’s Young Leader Discussion Meet an ethanol sweetener? 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:
What can be done to encourage young farmers and ranchers to return home to the farm if it means living in a rural area that does not provide the same amenities (education, health care, technology) as a metropolitan community?
Certain sectors of agriculture are labor intensive and rely heavily on immigrant workers. What is a fair and balanced immigration policy?
How should Farm Bureau help prepare its members-both young and old--for transferring operations to the next generation of farmers and ranchers? What is Farm Bureau’s role in encouraging more transfers?
How can Farm Bureau play a role to ensure the viability of quality agricultural education programs within our schools?
How do we reach out to associate members to provide value to their membership?
Entry Deadline August 1 (to Illinois Farm Bureau) Contact your county Farm Bureau® for eligibility and contest information.
IAA District Date 1&2 3 4 5&6 7 8 9 10 11 & 12 13 & 17 14 15 & 16 18
August August August August August August August August August August August August August
22 9 20 23 9 22 21 1 22 7 7 21 15
Starting Time
Location
6:45 7:00 7:30 6:00 7:00 6:30 6:30 6:30 6:30 7:00 7:00 6:30 7:00
Stephenson County FB, Freeport Henry County FB, Cambridge Mendota Civic Center, Mendota Dwight Municipal Building, Dwight 1st Farm Credit, Morton Knox Agri-Center, Galesburg Adams County FB, Quincy Sangamon County FB, Springfield Macon County FB, Decatur Edwards County FB, Albion Montgomery County FB, Hillsboro St. Clair County FB, Belleville Jackson County FB, Murphysboro
p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.
For more details or list of prizes - www.ilfb.org/youngleaders
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In the biofuels sector, as Kef Kasdin puts it, “sugar is the new oil.” And at a time when ethanol producers face tight corn supplies and the need for a leg up in biomass biofuels production, any technology that could feed added low-cost sugar into the system is akin to bringing in a new oilfield. Kasdin is CEO of Proterro, a New Jersey company that can produce sugar at an estimated nickel per pound by using Cyanobacteria, a freshwater microbe that generates sucrose as a natural protection against salt. Proterro’s modified bacteria produce sugar water without salt using sunlight and carbon dioxide (CO2). Bacteria are grown on a fabric surface in a plastic-encased “bioreactor.” A secondary sugar stream could help corn ethanol plants weather supply/price volatility, Kasdin suggested. A large array of bioreactors can be installed on “sand, gravel, a parking lot, the spare space around a plant,” she noted. “We could fill capacity when there’s a shortage, when you’re pushing more corn to food (production),” Kasdin told FarmWeek last week in Urbana. “If there is excess (plant) capacity, we could take care of that. “Since we can use the CO2 that comes off (ethanol) fermentation, we can give you another bite of the apple — more sugar that can be fed right into the system. We’re not trying to take anything away from the existing process.” Corn ethanol plants pull dextrose rather than sucrose from the kernel for fermentation into alcohol. However, Kasdin stressed “(fermentation) yeast don’t know the difference,” and argued bioreactors easily could be integrated into a small to mid-sized plant that produces fuel on a batch-by-batch basis. The need for CO2 offers an opportunity not only to recycle existing plant resources but also to benefit utilities, manufacturers, or others looking to reduce their greenhouse gas footprint or accumulate carbon “credits.” And low-input, low-footprint sugar production theoretically could help ethanol plants tap a greater share of the federally mandated biofuels market. The Renewable Fuels Standard (RFS) limits required corn ethanol use to a maximum annual 15 billion gallons, based on its greenhouse benefits relative to emerging “advanced biofuels” credited with greater farm-to-highway emissions reductions. Proterro is working with the U.S. Environmental Protection Agency to determine whether its technology might play a role in making regulated “green” fuels greener. “I think we meet the spirit, if not the letter, of what’s intended (in the RFS),” Kasdin argued. — Martin Ross
Page 11 Monday, July 23, 2012 FarmWeek
energy
Brazil studies strategies to up sugar/ethanol game BY MARTIN ROSS FarmWeek
After suffering recent setbacks because of weather, price, and, oddly enough, ag technology, Brazilian researchers are seeking inno-
vative ways to revitalize South American sugar production and thus potential ethanol volume. Even with northern Brazil’s Amazon region off-limits to sugarcane production, Brazil-
RC interested in counties reacting to ‘fracking’ Public opinion on “fracking” has been fragmented, often clouded by confusion over the process and its possible environmental impact. Illinois Farm Bureau’s Resolutions Committee (RC) thus seeks county Farm Bureau study into and input on hydraulic fracturing — use of pressurized fluid to produce fractures in subsoil rock layers to release oil or natural gas. Illinois State Geological Survey principal geologist Rob Finley last week briefed the RC Natural Resources (NR) Subcommittee on the practice and its environmental footprint. NR Chairman Terry Smith cited dual farmer curiosity about fracking-related income opportunities and concerns about how fracturing might affect groundwater integrity and quality. The RC offered preliminary proposals in support of regulations for site preparation, drilling, well casings, pipelines, waste storage, and other “appropriate” fracking-related safeguards. It is considering opposition to any Illinois moratorium on hydraulic fracturing. New York farmers remain at odds over their state’s ban on fracking, given natural gas drilling revenues accrued by farmers in neighboring Pennsylvania and continued controversy over the practice. NR Vice Chairman Larry Dallas noted minor earthquakes in Pennsylvania blamed initially on fracking eventually were traced instead to a waste water disposal injection well sunk into a seismic fault — a practice reportedly avoided in fracking. Dallas noted fracturing is done well below groundwater aquifer depths. Smith agrees with Colorado state geologist Vince Matthews’ recent assessment that “there really needs to be a good scientific understanding” of hydraulic fracturing before broad environmental assumptions can be made. “I found out that what I thought I knew about fracking was all misconceptions,” he told FarmWeek. “I didn’t know anything about it. It was very enlightening to hear what (Finley) had to say. “In the part of Western Illinois where I live (Clayton in Adams County), they ‘fracked’ shallow oil wells for years. Today’s technology is called fracking. I don’t know what it was called when I was a kid, but I know they were pumping stuff down wells to get more oil out them at times, too.” In addition, the RC designated three other “discussion topics” for county discussion: state pension reform, advance animal disease traceability, and township road commissioners’ posting and closing of roads. Those topics will be addressed at length in FarmWeek’s Aug. 6 policy development supplement. The RC reconvenes in November to draft policy proposals for delegate debate at IFB’s annual meeting Dec. 1-4 in Chicago. — Martin Ross
U of I’s Dixon Springs plans agronomy, horticulture field day The University of Illinois Department of Crop Sciences and U of I Extension will have an Aug. 2 Agronomy and Horticulture Field Day at Dixon Springs Agricultural Center, Simpson. The event will be from 9 a.m. to noon regardless of the weather. Tours of 2.5 hours will start at 9 a.m. with the final tour leaving at 9:30 a.m. A free lunch will be provided after the tour. Tour topics will include: high-tunnel production in Southern Illinois, high soybean yields, bioenergy crop production and use, nutrient removal in grain and stover, and corn disease management. The exhibits will include antique tractors and a small-scale gasifier that converts feedstock into a combustible gas. Dixon Springs is located on state Route 145, 25 miles south of Harrisburg and 15 miles east of Vienna.
ian Bioethanol Science and Technology Lab (CTBE) researcher Paulo Sergio Graziano Magalhaes sees ample room for expansion in central Brazil. Rural lands account for 42 percent of Brazil’s 2.1 billion acres. A mere 9 percent of that total area today is used for agricultural production, and only 0.4 of a percent of those acres is in sugarcane production for ethanol use. “We still have a lot of space to increase sugarcane production, and we’re not competing with food production,” Graziano told scientists at the third Pan American Congress on Plants and Bioenergy last week in Urbana. That’s key to the competitive environment for U.S. ethanol producers, who face ongoing “food vs. fuel” debate and regulatory policies that in some regards favor imported biofuels. The federal Renewable Fuels Standard ranks cane-based ethanol higher than corn ethanol in
greenhouse gas reductions, designating it an “advanced biofuel” eligible to play an expanded role in future mandates. Graziano and colleagues are looking beyond acreage expansion to boost sugar production. While Brazil’s move from manual planting and harvesting to ag mechanization has generated new efficiencies, use of heavy equipment has limited the area in which cane can be planted and it has contributed to damaging soil compaction between rows. Graziano hopes new technology and development of sustainable, higher-yield practices can help sugar producers “return to a normal situation.” Compaction affects roughly 60 percent of an average field, and the focus is on creating “more space for the plant,” he said. Toward that end, researchers are eyeing use of precision planting to maximize yields and quality, reduced
space between rows, and development of a harvester with a 29.5-foot swath that can in a single pass cover three adjacent cane rows instead of individual, separate rows. Graziano anticipates release of a prototype harvester in 2014 and a commercial model by 2016. In addition, he touts potential to tap sugarcane residues for biofuels production, just as U.S. growers are focusing on converting corn stover into ethanol. Given the continued economic importance of the sugar industry and domestic concerns about energy costs, the Brazilian government supports research and development efforts that would lower production costs, Graziano said. “Consumers are complaining about the (ethanol) price,” he told FarmWeek. “(Brazilian President Dilma Vana Rousseff) told producers, ‘You should try to reduce your price.’”
FarmWeek Page 12 Monday, July 23, 2012
Farm Bureau in action
Will County FB using signs to clear land ownership confusion BY MARK SCHNEIDEWIND
To people who grow up with a personal connection to farming, driving down the road and seeing seed signs, such as FS, likely brings to mind a specific seed salesperson who sells corn and soybean seed to local farmers. Those in the farming community also know the signs give farmers the chance to see how different brands and varieties are performing. However, people without
personal ties to farming often come to the conclusion that an FS sign beside a field of corn means that FS owns the field. GROWMARK Inc. owns the FS trademark. A 2010 study by Illinois Farm Families (IFF) revealed the ownership misconception after 1,109 Illinois residents were interviewed about farming and existing farm regulations. Specifically, the study found those surveyed believed 54
Southern Illinois Beef Day Aug. 1 The Southern Illinois Beef Conference will be Wednesday, Aug. 1, in the Applied Science Center at Rend Lake College, Ina. The registration deadline is Wednesday. The conference is especially geared to cow-calf producers and designed to offer information to enhance their management decisions, according to Teresa Steckler, University of Illinois Extension animal systems specialist. Registration will start at 8:30 a.m. with the program starting at 9:15 a.m. The registration fee is $15 and includes morning and afternoon refreshments, lunch, and conference materials. The fee for late and on-site registration is $20; however, meals are not guaranteed for individuals who don’t register early. For information or registration, contact Steckler at 618-6954917, tsteckle@illinois.edu, or register on-line at {http://web.extension.illinois.edu/dsac/}.
percent of farms were owned by corporations based on what they had seen on TV, commercials and signs along farm fields. In fact, 94 percent of all Illinois farms are family owned. Will County Farm Bureau members are working to make sure seed signs along the road highlight that fact. Farm Bureau members have printed and are now installing “My Family Farm Plants” signs above seed signs along the roads. Someone driving down the road would read the sign as “My Family Farm Plants FS” (see picture) or some other seed brand. Will County Farm Bureau President Tom Nugent is working on the project and has put the “My Family Farm Plants” signs above traditional seed corn signs next to his fields. “I don’t want people believing that these seed signs indicate the fields are corporately owned when, in fact, over nine out of 10 fields you pass are family owned,” Nugent said. With its recent population increase and proximity to
Chicago, Will County “My Family Farm Plants” signs are positioned uniquely to dispel the misconception that seed corn signs indicate corporate ownership. By placing the signs on heavily trafficked roads, more people will see the message that family farmers own the land and the crops planted on it. The IFF survey of Chicago residents also found that 60 percent was not knowledgeable about how food is grown on Illinois farms.
Survey respondents indicated they wished to know more about how farmers raised food. By placing the signs and clarifying the relationship between local, family-owned farms and seed corn companies, Will County farmers are making the effort to explain how family farms raise food in Illinois. Mark Schneidewind is the Will County Farm Bureau manager. His e-mail address is wcfb@willcfb.com.
Feed costs squeeze cattle margins BY DANIEL GRANT FarmWeek
The number of cattle placed in feedlots is expected to grow in coming weeks as farmers remove animals from drought-parched pastures. USDA on Friday reported the number of cattle and calves on feed in the U.S. as of July 1 totaled 10.71 million head, up 3 percent from last year. Meanwhile, placements in feedlots during June totaled 1.66 million head, down 2 percent from a year ago, while marketings of fed cattle in June (1.97 million head) were down 6 percent. “That (placement number) says the big push of placements we’ve been hearing about, at least in June, was not going on,” said Rich Nelson, director of research at Allendale Inc. “We know it’s happening now. “We have cow liquidation taking place (as cattle producers react to tighter feed supplies and higher costs),” Nelson continued. “We look for placements to pick up (in this and coming weeks).” Nelson noted some cattle producers are losing $200-plus per head due to the shortage of forage and rapid increase in crop prices. “The margins at feedlots are terrible if you did not have the feed price locked in (prior to the recent jump),” he said. Overall, beef supplies could remain steady short-term. But long-term, the thinning of the herd is expected to result in higher cattle and beef prices. Nelson described cattle prices (at about $112 per hundredweight) as ugly last week. But he predicted cattle prices this year will inch toward the mid-$120s before possibly running as high as $137 to $138 by next March or April. USDA in a separate cattle inventory report estimated the entire cattle herd in the U.S. as of July 1 totaled 97.8 million head, down 2 percent from a year ago and nearly 1 percent below trade expectations. In fact, the current inventory of all cattle and calves is at its lowest level since USDA began tracking the herd in 1973. “The bottom line is this gives a bullish outlook to beef supplies the next two to three years,” Nelson said. Beef replacement heifers, which were expected to increase, totaled 4.2 million head, unchanged from last year. “Expansion that was going on has cooled off,” Nelson said. He predicted the shrinking cattle herd could lead to considerable price increases at the meat counter by next spring.
Page 13 Monday, July 23, 2012 FarmWeek
from the counties
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OND — Farm Bureau will sponsor a drought and crop insurance discussion for area farmers at 10 a.m. Wednesday, Aug. 1, at the St. Lawrence Catholic Church gym, Greenville. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will lead the discussion. Mark Camfield will address the claim process. Call the Farm Bureau office at 618-664-3100 for more information. ASS-MORGAN — Farm Bureau will sponsor an “On the Road” seminar at 7 p.m. Thursday, Aug. 2, at the Morgan County Extension Building, Jacksonville. Current trucking regulations will be discussed. Call the Farm Bureau office at 217-245-6833 by Monday, July 30, for reservations or more information. HAMPAIGN — Farm Bureau will sponsor a series of summer Toolshed meetings Wednesday, Aug. 8. They will be at 8 a.m. at the Jack Murray farm, Champaign; noon at the Village Inn Pizza, Urbana; and 3 p.m. at the Jerry Watson farm, Villa Grove. Mark Gebhards, Illinois Farm Bureau executive director of governmental affairs and commodities, will be the speaker. Call the Farm Bureau office at 217-3525235 for more information. LARK — The Clark County 4-H auction will be at 6:30 p.m. Wednesday at the Martinsville Fairgrounds. • An Ameren transmission line open house will be from 5 to 8 p.m. Wednesday at Harlan Hall, Marshall. The proposed new 345 kva (kilo voltampere)line through the northern part of Clark County will be shown. • The annual picnic will be at 6:30 p.m. Friday, Aug. 10, at Mill Creek Park. Call the Farm Bureau office at 217-382-4144 by Wednesday, Aug. 8, for reservations or more information. OOK — Farm Bureau will sponsor a workshop at 7 p.m. Tuesday, Sept. 18, on preparing wills and trusts and transferring non-titled property at the JC Restoration Building, 3200 Squibb Ave., Rolling Meadows. Call the Farm Bureau office at 708-354-3276 for more information. • Farm Bureau will sponsor a two-day hunter education course from 9 a.m. to 3 p.m. Saturday, Oct. 6, and from 10 a.m. to 4 p.m. Sunday, Oct. 7, at the Farm Bureau office. Attendance is required for both days. Call the Farm Bureau office at 708-354-3276 for more information. RAWFORD — Farm Bureau will sponsor a trucking regulation update at 9 a.m. Friday, Aug. 3, at the Oblong Community Center. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker.
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Call the Farm Bureau office at 618-544-3792 for reservations or more information. EWITT — The DeWitt County Soil, Water, and Conservation District and Farm Bureau conservation tour will be at 8 a.m. Wednesday, Aug. 15. The bus will load at Pinky’s Restaurant, Weldon Springs State Park. Lunch at Pinky’s will follow the tour. Call 217-935-6504, Ext. 3, for reservations or more information. • Farm Bureau will sponsor a bus trip Aug. 20-22 to Milwaukee. Included in the trip will be Greendale Village, Harley Davidson, Case IH, and a Milwaukee boat tour. Cost is $340 for members and $360 for nonmembers. Call the Farm Bureau office by Monday, July 30, for reservations or more information. AYETTE — Farm Bureau will sponsor a drought condition and crop insurance discussion for area farmers at 1:30 p.m. Wednesday, Aug. 1, at the Farm Bureau office. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will lead the discussion. Call the Farm Bureau office at 618-2837276 for more information. REENE — A fire extinguisher service program will be from 8:30 to 11 a.m. Thursday, Aug. 2, at the Farm Bureau office. Members may bring their equipment to have checked before fall. Call the Farm Bureau office at 217942-6958 for a price list for service and new equipment. ANCOCK — Farm Bureau and the Hancock County Health Department will sponsor a “On the Road” seminar at 5:30 p.m. Thursday at the Sullivan and Sons Auctioneering, Carthage. Kevin Rund, Illinois Farm Bureau senior director of local government, will discuss trucking laws. Call the Farm Bureau office at 217-357-3141 for reservations or more information. ACKSON — The third annual Fish Fry and Fun Night will be from 5 to 8 p.m. Saturday at the Knights of Columbus Hall, Murphysboro. Tickets are $10 for adults and $5 for children. • The Marketing Committee and the Illinois Corn Marketing Board will sponsor a food drive during the month of July. Farm Bureau will add $2 for each non-perishable item donated to purchase meat for the local food pantries. ASALLE — Farm Bureau will sponsor an informational meeting for landowners with the Clean Line Energy project at 6 p.m. Wednesday, Aug. 1, at the Farm Bureau auditorium. Rae Payne, Illinois Farm Bureau senior director of business an regulatory affairs, and Laura Harmon,
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Illinois Farm Bureau general counsel, will be the speakers. Call the Farm Bureau office for more information. EE — Farm Bureau and the Lee County Fair Association will sponsor a blood drive from noon to 6 p.m. Thursday at the Lee County Fairgrounds during the 4-H Fair and Junior show. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net if you can donate or volunteer. Walk-ins are welcome. • The Young Leader Committee will sponsor an Italian Beef food stand from 5 to 7 p.m. Thursday at the Lee County 4-H Fair and Junior show. It also will sponsor a coloring contest for children 13 and under who complete a picture and return it for a free buffalo chip coupon. The Public Relations Committee will sponsor a “Farm Fact Scavenger Hunt” activity each day during the fair. Stop by and enter to win two daily prizes. • The Public Relations Committee will sponsor a Lee County Field Moms program for non-farm moms to learn about agriculture through farm tours and conversations with farmers. Those who are interested may return an application to the Farm Bureau office by Aug. 1. Applications are available on the website {www.leecfb.org}. ONROE — Members and their families are invited to the Meet the Candidates and ice cream social at 7 p.m. Thursday, Aug. 2, at the
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Monroe County Fairgrounds. Prizes will be awarded. • Farm Bureau will sponsor a family farm tax changes and planning meeting at 7:30 a.m. Thursday, Aug. 9, at the Monroe County Annex. Breakfast will be served. Call the Farm Bureau office at 939-6197 by Thursday, Aug. 2, for reservations or more information. • The Mon-Clair Corn Growers test plot tour will be at 6 p.m. Wednesday, Aug. 8, at Greg Guenther’s farm, Belleville. Dinner and updates will be at the St. Clair County Farm Bureau office. Call the Farm Bureau office at 939-6197 or the St. Clair County Farm Bureau office at 233-6800 by Thursday, Aug. 2, for reservations or more information. ONTGOMERY — The Montgomery County Young Leaders hybrid and variety plot tour will be from 6 t 8 p.m. Thursday, Aug. 2, at Carl Marten’s farm, Raymond. Door prizes will be given and a light dinner served. Call the Farm Bureau office for more information. EORIA — Discount Peoria Chiefs baseball tickets are available at the Farm Bureau office for the Chiefs vs. Cedar Rapids Kernels game at 7 p.m. Wednesday. Cost is $6. Hotdogs, soda, and ice cream sandwiches are $1. • Orders for Calhoun County peaches are due Wednesday, Aug. 1. Peaches are available in 25-pound boxes. Delivery will be Thursday, Aug. 9, at the
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Farm Bureau auditorium. Order forms are available at the website {www.peoriacountyfarmbureau.org} or in the July Farmer newsletter. T. CLAIR — The MonClair Corn Growers test plot tour will be at 6 p.m. Wednesday, Aug. 8, at Greg Guenther’s farm, Belleville. Dinner and updates will be at the Farm Bureau office. Call the Farm Bureau office at 2336800 by Thursday, Aug. 2, for reservations or more information. ANGAMON — Farm Bureau will host “A Day in the Country” from 1 to 6 p.m. Sunday, July 29, at the Beaty Farm, Rochester. It will provide urban neighbors an opportunity to visit with local farmers. Pony rides, a bounce house, and Ag in the Classroom activities will be provided for children. Heartland Beef Association and Prairie Farms will provide hot dogs and ice cream. There is no charge for the event. NION — The Marketing Committee and the Illinois Corn Marketing Board will sponsor a food drive during the month of July. Farm Bureau will add $2 for each non-perishable item donated to purchase meat for the local food pantries.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
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FarmWeek Page 14 Monday, July 23, 2012
pROFITABIlITY
Fertilizer markets look for direction amid volatility BY JOE DILLIER
What would you do if you were in charge of setting the price for a product where the price of the “finished” product, one for which your product was a crucial input, was rising dramatically? What would Joe Dillier you do if the reason that the “finished” product price was up dramatically was a difficult-to-quantify, weather-induced, but potentially major, supply disruption? How would you assess demand for your product given such a scenario? Would the
lower production potential for the finished product mean less demand for your (input) product? Or would the higher prices for the finished product drive higher demand for your product? How would you set current prices if you didn’t know what the demand for your product would be for several more months? Welcome to the fertilizer markets. Thankfully, no one person is in charge of “setting” fertilizer prices. Prices are set (or “discovered”) in the marketplace, where supply and demand meet, just like for grains and other commodities. And I know that expecting sympathy for the difficult tasks
Vision for Illinois Ag planning summit The Vision for Illinois Agriculture and iBIO are collaborating on a program for the first Ag-Bio Industrial Summit on Aug. 9 in Illinois State University’s Bone Student Center, Normal. The Illinois Department of Agriculture is sponsoring the event. The summit will provide participants an opportunity to learn about the industry sector, discuss industry hurdles and challenges, and identify opportunities for growth. Registration will start at 8 a.m. with the program beginning at 9 a.m. During an evening reception, iBIO will present the John W. Maitland Jr. Award to U.S. Rep. Tim Johnson, an Urbana Republican, for outstanding support to the Illinois biotechnology community by a government official. The registration fee is $35 and includes breakfast, lunch, and the reception. The registration deadline is Aug. 7. For more information or to register, go online to {www.ibio.org}, click on the “news and events” icon, and then click on “new meetings and events” or call iBIO at 312-422-1111.
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.
Range Per Head $18.42-$46.50 n/a
Weighted Ave. Price $36.33 n/a
This Week Last Week 107,724 96,899 *Eastern Corn Belt prices picked up at seller’s farm
Receipts
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $86.56 $87.65 $64.05 $64.86
Change -1.09 -0.81
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 112.09 114.72 -2.63 112.00 114.72 -2.72
facing the fertilizer market may raise some hackles. But “how big will demand be this fall?” is a big, big question. The guesstimates are all over the map — some are saying demand will plunge 65 percent (at least), some say less. Nobody is projecting higher fertilizer demand, but with grain markets up dramatically, some 40 percent since mid-June at this writing, I wouldn’t be surprised to the upside by fall fertilizer demand. This would especially be the case if “outside” financial markets and the general economic
outlook improved from the negative daily drum beat of recent months, and if rains materialize to make fall fieldwork look like a workable proposition. Where we are currently is that phosphate prices have been moving up modestly over the past couple of months, based on good international demand, especially in Latin America. Potash prices are about flat. Global nitrogen spiked in the spring then came off some in late May/early June but has jumped back up in the past few weeks, especially for Nh3.
The problem for a seasonal demand-commodity such as fertilizer, and one with a pretty long supply chain, where miles and miles of railroads and waterways lie between production and market, uncertainty and volatility can stall buying for so long that in-season supplies fall short, and prices spike (like this past spring for urea). We’ll see where demand ultimately settles this fall.
BY DANIEL GRANT FarmWeek
Farmers could benefit from the equipment modifications in the form of lower input costs and improved efficiency. “We’re focused on how to make that machine more efficient,” Rushing said. “A big driver is fuel efficiency.” As an example, Rushing reported a 30 percent fuel reduction on 1,000 acres of corn production could save a farmer more than $15,000 per year. Equipment manufacturers so far have used technology such as selective catalytic reduction systems and diesel particulate filters to reduce emissions. Electric power could be used more, too. An electric Gator — a farm utility vehicle — has been on the market since 2010. But the main power source for farm machinery will continue to be diesel power for at least the next 20 years, Rushing said. A recent study projected 87 percent of ag machinery will be powered by diesel through 2030. But the industry will have to continue to modify farm
equipment to reduce emissions, which likely will increase the retail cost of everything from tractors to combines. “The regulations aren’t going to stop (with Tier 4). We’re going to get hit up with more,” said Rushing, who estimated the next round of emission regulations could take effect between 2018 and 2020. “The next focus will be carbon and even smaller particulates.” Rushing also projected a wave of advanced electronic concepts will shape the equipment industry in the future. Electronic control systems will phase out hydraulics on farm implements, he said. “The implement more and more in the future will be driving what the tractor does,” he said. Tractor sales the first half this year were brisk, particularly for larger models, according to the Association of Equipment Manufacturers. Overall, U.S. tractor sales through June were up 6.7 percent compared to the same time last year. Sales of 100plus horsepower tractors so far this year are up 8.1 percent.
Joe Dillier is GROWMARK’s director, plant food. His e-mail address is jdillier@growmark.com.
Farm equipment manufacturers focusing on power, efficiency, EPA regulations
Farm equipment isn’t expected to lose power as manufacturers reconfigure engine and fuel systems to meet new emission control standards. In fact, farm equipment in the future could be both larger and more efficient, according to Matt Rushing, director of product management for AGCO. “We’re trying to balance (emission) requirements into fuel savings for farmers with a focus on maintaining and growing power and torque,” said Rushing, who was a featured speaker at the recent Top Farmer Crop Workshop hosted by Purdue University and the University of Illinois. The Environmental Protection Agency is implementing Tier 4 regulations with a goal to reduce exhaust from offroad diesel engines by as much as 90 percent. Final Tier 4 regulations were implemented this year for offroad diesel engines with 50 to 74 horsepower. The regulations will be fully implemented by 2015.
BIRD’S EYE VIEW OF THIN BEAN STANDS
CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week 137.39 143.71 -6.32
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-180 lbs. for 119.86-135.37 $/cwt. (wtd. ave. 130.74).
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 07-12-12 14.3 14.9 21.7 07-05-12 19.2 14.9 23.4 Last year 3.8 19.4 35.9 Season total 1250.2 115.4 1366.7 Previous season total 1435.2 144.2 1556.9 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
An aerial view of a soybean field near Royalton/Zeigler in Franklin County reveals how thin many stands have become due to the intense heat and lack of moisture. Even if the area receives rain, many bean yields could end up in the 10- to 15-bushel range, according to Gary Bowlin, assistant manager of the Franklin County Farm Bureau. (Photo courtesy of the Franklin County Farm Bureau)
Page 15 Monday, July 23, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
More wheat going to be fed Feed (coarse) grain supplies outside of the U.S. and China could be as tight as they were back in 2006/07, but wheat supplies are not nearly as tight as they were in recent tight years, 2007/2008 being the latest. The ample supply of wheat again will push large quantities of the crop into the feed bunk to cover feed tightness. The details shown on the accompanying graphics are from USDA’s July forecasts. The production numbers will need to be discounted because of ongoing crop problems in parts of Western Europe and former Soviet Union countries, along with potentially smaller wheat crops in Argentina and Australia. Reductions will be counter-balanced by the large wheat crops in Pakistan and India. The supply and stocks/use ratio for the combined supply of
coarse grains and wheat are not as tight as they were in the 2006/07 and 2007/08 marketing years. When you add into the mix that dollar-adjusted prices for corn are at all-time highs, there’s reason to think overall demand will not be as strong as forecast just a month ago. And we are starting to hear stories about buyers pushing back against the unexpected higher prices. Eventually, you end up with a situation of having extraordinarily high prices to start the marketing year, with a fundamental structure outside of the U.S. and China not quite as tight as it was in when prices hit their prior peaks in 2008. As the marketing year progresses, we’ll see more interest in sourcing feed grain, as well as protein needs, out of South America. That will undermine prices starting this winter. The more one looks at the situation, the more one foresees a traditional “short crop/long tail” scenario. The best prices will come early, maybe even in the next one to two weeks.
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Cents per bu.
ü2011 crop: Sell remaining old-crop bushels. ü2012 crop: The struggle the corn market is having suggests further gains may be hard to come by. Do comprehensive yield checks to access your production potential. Get to 70 percent priced on a conservative assessment of the bushels you will have to sell. ü2013 crop: You should have priced 10 percent when December 2013 futures hit $6.35. Check the Hotline for a recommendation to price another 10 percent at any time. vFundamentals: Weather continues to stress the crops, dragging potential lower. The trade seemed to be thinking a high-130-bushel-per-acre national yield as last week began. By week’s end, it may have been working with a low130 level. That’s getting close to a level comparable with 1988 yields. Demand is becoming as important as supply, and evidence is starting to surface that high prices are having negative repercussions. ûFail-safe: If December futures close below $7.49, make sure sales are at recommended levels.
Soybean Strategy
ü2011 crop: Wrap up any old-crop sales. ü2012 crop: Yield potential for soybeans is a more difficult call than it is for corn. But if you are comfortable with production potential, you should get 70 percent of a conservative output priced. ü2013 crop: You should have 10 percent of your crop priced. We may add another 10 percent at any time; check the Hotline frequently. vFundamentals: The weather focus has shifted to the soybeans, especially after the National Weather Service’s hot, dry August forecast for the Corn Belt. The trade was working with a 39-bushel yield at the start of last week, but may have shifted another 1 to 2 lower in the wake of the longer-range outlook. A 36-bushel yield would be comparable to the 1988 yield. Amid the focus on supply, there is some initial evidence that high prices have
started the rationing process. ûFail-safe: If November futures close below $15.61, make sure sales are at recommended levels.
Wheat Strategy
ü2012 crop: Wheat futures are nearing important resistance on the weekly chart at $9.90. Other than the extraordinary pull of the spring wheat market in February 2008, Chicago futures haven’t shown a penchant for staying above $9.50 for any length of time. Boost your sales to 80 percent if Chicago September futures touch $9.50. When prices break, the decline will be as fast as the rally.
ü2013 crop: Leave an order to price the first 15 percent if Chicago July futures reach $8.49. vFundamentals: Wheat continues to follow corn prices higher, but scattered problems for crops in some parts of the world offered modest fundamental support. On their own, wheat fundamentals are tight enough to hold prices at current levels without the support of the corn market. Buyers are becoming increasingly reluctant at these levels. ûFail-safe: If Chicago September closes below $8.90, make sure sales are at recommended levels.
FarmWeek Page 16 Monday, July 23, 2012
perspectives
Did ya hear the one about . . .
Insect jokes uncommon comedic fare Jokes about insects are rather rare. There probably is a very good reason for that: Most people don’t see much humor in insects. We find it difficult to laugh at creatures that we don’t like or understand. But while insect jokes are not common, they do exist. One of the early entomologists here at Purdue University, J. J. Davis, liked good insect stories. He collected some of his favorites and compiled them in a 1937 book called “The Entomologists’ Joke Book,” with the subtitle “Humorous writings and comments wittingly and unwittingly written of an otherwise highly important science.” Davis’ book included a numTOM ber of stories about insects and TURPIN entomologists that could be considered humorous, at least by some people. His sources were tales he had heard or read in newspapers, popular magazines, or publications devoted to agriculture and insect science. One frequently referenced source in Davis’ book is Entomological News, a periodical that has been published by The American Entomological Society since 1890. The joke book is divided into chapters. The first is titled “Lepidopterous Episodes” and includes moth and butterfly material. There’s a preacher joke: The minister was visiting at Buddie’s house. At the dinner table Bud said: “Pa, are caterpillars good to eat?” “No, Buddie. What makes you ask such a question?” “I saw one on Reverend Smith’s lettuce, and now it’s gone.” A young bride joke: Young bride: “If this is an all-wool rug, why is it labeled cotton?” Salesman: “In order to fool the moths.” And a joke about the word “lepidoptera”: “I understand, Mrs. Grassey, that your son has become quite an eminent lepidopterist.” “Mercy on us! It ain’t nothing like a kleptomaniac, is it?” That joke was first published in the Entomological News. Here are others from the same source: Nell:
“How old does Miss Antique say she is?” Belle: “She doesn’t say; but I’ve heard her speak of several distinct crops of 17-year locusts.” First Katydid: “Why didn’t you come before?” Second Katydid: “Were you calling?” First Katydid: “Was I calling? Don’t you see how hoarse my legs are?” Another chapter is titled “Orthopterologically Speaking” and includes grasshoppers, katydids, and crickets. These insects use their legs and/or wings to produce sound. Here’s a story about crickets: An old farmer and his wife lived near the village church. One warm Sunday evening, while they sat dozing on the porch, the crickets set up a loud chirping. “I just love to hear that chirping noise,” said the old man drowsily. And before the crickets had stopped he was fast asleep. Soon after, the church choir broke into a beautiful chant. “Just listen to that,” exclaimed his wife; “ain’t it beautiful?” “Yes,” murmured the old farmer sleepily, “They do it with their hind legs.” Even the venerable old Life magazine was not above including an insect story. Following is an example. Armyworm: “Why are you following that man?” Cutworm: “He has a seed catalog under his arm.” There are ant jokes: Ants are supposed to be the hardest-working creatures in the world. Yet they seem to have time to attend all picnics. Fleas also jump into a joke or two: You can’t teach a flea tricks by using a whip because he’s used to rawhide. The tragedy of the flea is that he knows for a certainty that all of his children will go to the dogs. Speaking of dogs and fleas, here’s one that has made the Internet: Why is it illegal to take dogs to a flea circus? They’ll end up stealing the show! Hey, I never made the claim that insect jokes were all thigh slappers! Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.
England is the latest party to Europe’s money woes During the last week of June news broke that LIBOR (London Inter-bank Overnight Rate) interest rates were being rigged. LIBOR is an interest rate that banks allegedly charge each other for overnight loans among themselves. These erroneous interest rate fixings first started in 2007 — even before the financial crisis. How long these false fixings went on and to what extent the rates were fudged is yet to BRUCE FINKS be determined. When the story first broke, it seemed that hardly anyone cared. The reaction of the markets was fairly mundane. Then, later in the week, heads started to roll. Barclays Bank, a major bank and investment firm headquartered in London, is at the epicenter of the investigation. Barclays’ chief executive officer and another high-ranking officer of the company have lost their jobs as a result. It appears that this is just the tip of the iceberg because 19 other banks submit information used to set LIBOR and more than a few others had to be involved to move the interest rate. While this in itself does not seem highly nefarious, in reality everything from car loans to mortgages to credit card loans is based on LIBOR. At first it seemed that Barclays and any others involved must have done it in an attempt to move the markets in a way to make their trading positions more profitable. But in testimony in front of the British Parliament recently, it was disclosed that the real reason was because LIBOR was rising at an alarming pace. The Bank of England (BOE), which is the British equivalent of the Federal Reserve, and the banks themselves were worried that investors would view this as a sign of financial stress and might panic. The member of the BOE who allegedly gave tacit approval for Barclays to fudge its numbers has denied that he did so. This situation will take awhile to unfold. Meanwhile, there has been very little other news from Europe, good or bad, and the financial markets have been range-bound. I came across an editorial from The Wall Street Journal from Oct. 28, 2011, and thought it
was insightful. The writer was worried that the situation in Europe seemed to consist of everyone bailing out everyone. One bailout fund was bailing out another bailout fund in what seemed at the time like a shell game. At the end, the writer pointed out that the most recent deal had something for everyone, except that it did not address the real problem, which is that in virtually every European government, spending outstrips revenue every year. The problem is compounding at an alarming pace, yet the answer that keeps coming out of Brussels is to loan more money to countries that already cannot pay back what they owe. The probability of these spendthrift counties being able to pay back additional loans is even more remote. The most recent meetings in Brussels were essentially more of the same. How much longer the Eurozone can kick the can down the road remains to be seen. Interest rates remain at very low levels, and we expect them to probably remain there until sometime next year. With world economies very
‘It appears that this is just the tip of the iceberg because 19 other banks submit information.’ weak, there is not much reason to expect rates to rise. Economic indicators are declining all over the world, but earnings numbers for individual companies are not being adjusted downward, which makes us worry about current stock valuations. The stock market had some nice gains in early June, but has not changed much since. All eyes are on the Europeans to see what they do to solve their debt and banking problems. Fear and greed have been the driving forces behind market movements this year. Market commentators are using the terms “risk off ” and “risk on” to describe this market psychology. A consequence of this type of market action is that there is little differentiation among individual stocks. With fear and “risk-off,” there is indiscriminate selling and vice versa with greed and “risk-on.” Bruce Finks is vice president for investments with Country Financial.