FarmWeek 16 page july 2 2012

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EIGHTEEN ILLINOIS farmers will return this week after a whirlwind trip to Cuba to explore export opportunities. ......5

A DIXON FARMER recently planted a simple idea for an effective way to connect with non-farmers — grow a seed. .........................8

ETHANOL HOLDS A great deal of promise as automakers attempt to become leaner and greener. ..........................................11

Monday, July 2, 2012

Two sections Volume 40, No. 27

Crop insurance claims could escalate BY DANIEL GRANT FarmWeek

Fried corn sounds like something that could be on the menu at a county fair. Unfortunately, it’s all that’s left standing in many farmers’ cornfields, particularly in Southern Illinois where drought conditions last week were rated extreme by the U.S. Drought Monitor. Now, the only question for some farmers is how long the fields of drought-ravaged corn will remain standing? An estimated 30-40 crop insurance claims were filed last week with Country Financial and company spokesman Chris Anderson anticipates the number of claims will escalate in coming weeks. “One option for farmers is to leave it out there until harvest,” Anderson told

FarmWeek. “That’s how we can get the most accurate assessment of what their loss is.” But that option could change in coming weeks, particularly if there is no signifi-

More drought coverage on pages 2-4 cant rainfall. “If there’s no rain by midJuly, then it will be clear there will be nothing, or very, very low yields,” said Anderson, who believes this week could be pivotal for crop insurance claims due to extreme heat and no rain in the forecast. Once a claim is filed, a crop adjuster will visit each drought-damaged field to appraise the acreage and

explain the options. Anderson encouraged farmers who decide to destroy cornfields to contact their adjuster for instructions on leaving test strips so the crop damage can be assessed through the reproductive stage. The adjuster must inspect the crop prior to its destruction. Don Duvall, president of the White County Farm Bureau and a farm owner near Carmi, last week had a tenant opt to mow some of his drought-stressed corn. “The corn should have been shooting and tasseling,” Duvall said. “But there was nothing there.” Duvall’s tenant left test strips for insurance purposes. He believes much more corn in his area will go down soon. “There’s probably more

The tenant on a farm near Carmi owned by White County Farm Bureau President Don Duvall mows down drought-ravaged corn last week just prior to the arrival of triple-digit heat that engulfed much of the state. Duvall said corn in the 80-acre field tasseled but there was no ear development on the small, parched stalks. Test strips were left in the field for insurance purposes. (Photo by Don Duvall)

than 1,000 acres in my area scheduled to be mowed down now,” Duvall said last week. “And that’s before the com-

ing week with triple digits and no rain in the forecast. Our prospects only will get worse after that.”

USDA boosts acreage estimates; yield expectations diminish

Periodicals: Time Valued

The highly anticipated June acreage and stocks reports released on Friday took a backseat in the markets to the ongoing drought problems in the U.S. and world economic activity. USDA estimated planted acres this year total 96.4 mil-

lion for corn (up 5 percent from last year) and 76.1 million acres for beans (up 1 percent from a year ago). That would mean corn plantings would be the most on record since 1937, when farmers planted 97.2 million acres, while soybean acres this year would be the third-highest on record. In Illinois, plantings were projected to total 13 million acres for corn (up 400,000 from last year) and 8.6 million for beans (down 300,000 from a year ago). The large estimates of planted acreage (all wheat was projected at 56 million acres, up 3 percent from a year ago) did not weigh on the markets. In fact, crop markets rallied on Friday. “We’re seeing the markets react in an extreme way for what I view as a mostly neutral report,” Jack Scoville, market analyst with The Price Futures

Group, said during a teleconference hosted by the Minneapolis Grain Exchange. Scoville and Dale Durchholz, AgriVisor senior market analyst, said the markets are reacting to the ongoing drought situation, which is diminishing crop yield potential in the Corn Belt, along with financial news in Europe. “Weather is the huge factor really playing out in the market right now,” Durchholz told the RFD Radio Network. “Macro economic influences also are in play.” Eurozone leaders late last week agreed to ease repayment loans to Spanish banks and relax conditions for Italy. The positive news out of Europe pushed financial markets, along with oil prices and other commodity markets, higher on Friday. In the U.S., Scoville believes the crop markets will remain firm as long as weather

FarmWeek on the web: FarmWeekNow.com

prospects continues to be grim. He predicted prices could inch toward $7 to $7.50 per bushel for corn and $15plus for soybeans if the drought continues to sap yield potential. “We desperately need a drink, from Chicago south,” the analyst said. “But there’s nothing in the forecast. It will

FarmWeekNow.com Listen to Jack Scoville’s comm e n t s o n U S D A’s p l a n t e d acres report by visiting FarmWeekNow.com.

keep the markets firm.” The northern third of the state was receiving rain Friday morning. Durchholz believes crop abandonment rates will increase in coming weeks. USDA predicted farmers this year increased double-crop soybean plantings by 800,000

acres compared to last year. But many of the double-crop acres planted in droughtparched areas likely went in due to the incentive of insurance guarantees. “The question now is how many of these acres will we harvest,” Durchholz said. “We’re going to start to see abandonment going forward.” Stocks estimates released Friday were relatively neutral to the market. USDA estimated corn stocks in all positions on June 1 totaled 3.15 billion bushels (down 14 percent from last year), soybean stocks were pegged at 667 million bushels (up 8 percent from a year ago), and all wheat stocks totaled 743 million bushels (down 14 percent from last year). The portion of crops stored on farms as of June 1 was down 12 percent for corn and 18 percent for beans compared to last year. — Daniel Grant

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


FarmWeek Page 2 Monday, July 2, 2012

dROuGHT

Quick Takes

FFA’ERS, HEALTH CARE HISTORY — A historic day at the U.S. Supreme Court will be more than a date in a history book for the Illinois teens and adults on last week’s Illinois Farm Bureau and Affiliates Youth to Washington Tour. The FFA and 4-H members were in Washington, D.C., Thursday when the Supreme Court ruled on the Patient Protection and Affordable Care Act. While the Illinois group did not tour the Supreme Court Building, members saw the demonstrations and activity outside. “The FFA members had the opportunity to witness history first hand and the reaction of the crowd after the ruling was handed down,” said Mariah Dale-Anderson, IFB special service manager who supervised the trip. “Many of our FFA members did understand the impact of what had happened and better understand our political system ... through this experience,” she noted. FARM MUSIC VIDEO PARODY A HIT — A music video parody featuring farm scenes and three Kansas farm brothers is a hit on the social media sites, YouTube and Facebook. Entitled, “I’m Farming and I Grow It,” the video was developed by Greg, Nathan, and Kendal Peterson whose family farms in Saline County, Kansas. In the three-minute, 32-second video take-off of a rap song, the brothers feed cattle, drive combines and tractors, and move hay while rapping about farming. Since the video was posted June 25, it has been viewed more than 1.5 million times and is popular in the U.S., Canada, and Australia. FARM LESSONS AT THE ZOO — Visitors to Chicago’s Lincoln Park Zoo last Saturday learned how Illinois farmers grow soybeans, raise pigs, and produce pork. Volunteers with Illinois Farm Families (IFF) answered consumers’ questions during the PORK-a-pa-ZOO-la. The event offered activities and information for zoo visitors of all ages. Families saw how soybeans grow and learned what pigs eat. Visitors also were treated to free pork burger samples and were able to buy a DaBurger, one-third-pound ground pork burger that was introduced last fall at Chicago Bears’ home games. To learn more about IFF, go online to {www.WatchUsGrow.org}.

(ISSN0197-6680) Vol. 40 No. 27

July 2, 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.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2012 Illinois Agricultural Association

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

SORTING PEACHES

Employees of Rendelman Orchards at Alto Pass in Jackson County sort Gala peaches from harvest that began two weeks earlier than normal this year. Betty Sirles, co-owner of the orchard, reported peach production this year will be average, but there was only a little damage from frost. The orchard produces 20 varieties of peaches. Sirles said the orchard’s 25 acres of cucumbers is a total loss because of dry weather, but their 25 acres of squash, which is irrigated, is in good condition. (Photo by Ken Kashian)

Weed control a ‘hot’ issue so far this growing season BY DANIEL GRANT FarmWeek

The hot and dry conditions obviously haven’t been good for crop development so far this growing season. But the extreme conditions apparently haven’t slowed weed growth at many locations. In fact, summer annual weeds in many soybean fields are nearly three feet tall, according to Aaron Hager, University of Illinois weed scientist. “Plants that have escaped pre-plant tillage operations often have contorted, Cshaped stems as a result of being damaged by the field cultivator,” Hager said. “These plants can be very difficult to control with post-

Tuesday: • Kendra Buchanan, Illinois Department of Agriculture marketing specialist • Bryce Anderson, DTN chief ag meteorologist • Michelle Damico, Michelle Damico Communications • Mark Bellis, PNC ag banker Wednesday: • John Rednour, DuQuoin State Fair manager • Mark DePue, director of oral history at the Abraham Lincoln Presidential Library Thursday: • Tim Maiers, Illinois Pork Producers • Bonnie McDonald, president of Landmarks Illinois Friday: • Sara Wyant, AgriPulse publisher • Mark Gebhards, Illinois Farm Bureau director of governmental affairs and commodities • Alan Jarand, RFD radio director

emergence herbicides.” The most common weeds include horseweed/marestail, lambsquarters, and waterhemp. The large weeds in many fields may have escaped a pre-plant burndown application due to glyphosate resistance or the fact that environmental condi-

FarmWeekNow.com L i s t e n t o R F D ’s i n t e r v i e w with Ford Baldwin about resistant weed control at FarmWeekNow.com.

tions before and during applications were not always conducive to good herbicide performance, Hager noted. Glyphosate-resistant waterhemp can be controlled by PPO inhibitors or Liberty, while cloransulam (FirstRate) or chlorimuron (Classic) can control glyphosate-resistant marestail in soybeans. However, control of marestail larger than 6 inches often is inconsistent, according to the weed scientist. Control of large weeds this season may require some farmers to do it the old-fashioned way — walking their fields and manually digging up the weeds or cutting them down.

That approach has become more common in the southern U.S. due to glyphosate resistance. “We’ve essentially lost Roundup in the South as anything but a grass herbicide,” Ford Baldwin, weed scientist from Arkansas, told the RFD Radio Network last week at a Beck’s Hybrids field day. Baldwin urged farmers in the Corn Belt to take proactive steps to limit the build-up of glyphosate-resistant weeds. “You have opportunities up here we didn’t have, such as Liberty Link,” he told Midwestern farmers. “With corn rotation and soil-applied herbicides, you can start pushing this thing back.” Baldwin also encouraged farmers to use rotation and tillage diversity to help control weeds and slow the spread of glyphosate resistance. “The days of easy weed control are gone,” he added. Weed control will be among the topics discussed at the Southern Illinois University field day, which will be held July 12 at the Belleville Research Center. For more information about that event, contact Ronald Kruz at 618566-4761.

Central Illinois ag blog covers farm issues University of Illinois Extension is offering an agriculture blog for Fulton, Mason, Peoria, and Tazewell counties. The “Out Standing in the Field” blog features the latest in pest management news, row crop agronomics, vegetable

and fruit production, information for small farms, and meeting notices. The blog will be updated every few days as topics arise.. To view the blog, go online to {http://web.extension.illinois.edu/fmpt/eb279/}.


Page 3 Monday, July 2, 2012 FarmWeek

DROught

Drought expands in Illinois; more heat, dryness forecast BY DANIEL GRANT FarmWeek

Corn that is just waist-high by the Fourth of July and tasseling is the last thing a farmer wants to see. But that was the reality last week for many, including Richard Mathis, who measures a drought-stressed, tasseling corn plant at just above 3 feet tall in this field north of Bone Gap in Edwards County. (Photo courtesy of Edwards County Farm Bureau)

The drought in recent weeks spread like wildfire in Illinois, and the situation is expected to get worse. The National Weather Service (NWS) forecast for this month points to warmer and continued dry conJim Angel ditions, reported Jim Angel, state climatologist with the Illinois State Water Survey (ISWS). High temperatures were forecast to break into triple digits in Southern Illinois and other parts of the state late last week, over the weekend, and into this week. “It doesn’t look too promising,” Angel said. “About 89 percent of Illinois is in some stage of drought.” The U.S. drought monitor released last week indicated much of Northern Illinois is in moderate drought, Central Illinois is in a moderate to severe drought, and Southern Illinois is locked in an extreme drought. And the National Oceanic and Atmospheric Administration last week predicted the drought would persist or intensify in the southern

two-thirds of the state through Sept. 30 (see graphic). Last month was the fifthdriest June on record (as of June 28), according to Angel. An average of just 1.6 inches of rain was recorded last month, which was 2.2 inches below normal. In fact, every month so far this year has featured belownormal precipitation and above normal temperatures in Illinois. “We’re about 42 percent of normal precipitation,” Angel said. “That’s pretty tough.” The situation is being exacerbated by high evaporation rates. A new instrument at the ISWS showed Illinois last

month lost about 6 inches of moisture from the ground. “May and June were outstanding for low humidity, lots of sunshine, and a lot of wind — all favorable conditions for drying things out,” Angel said. “It’s not just a lack of rainfall. Other things are conspiring against us.” The National Agricultural Statistics Service Illinois field office last week rated soil moisture across the state at 84 percent short or very short and just 16 percent adequate. “There’s not much available soil moisture left in the top eight inches,” Angel said. “That concerns me. It’s awfully early (in the season) to be running out of soil moisture.”

SAD COMPARISON

State government monitoring drought BY KAY SHIPMAN FarmWeek

The state last week was monitoring drought conditions while officials considered their options. An interagency water group, the Illinois State Water Plan Task Force, already had recommended authorization to reconvene a state’s Drought Response Task Force. The State Water Plan Task Force is comprised of representatives of state resource agencies, the University of Illinois, and the governor’s staff. The drought task force’s role would be “to keep a finger on the pulse” of conditions, said Arlan Juhl, director of the water resources offices with the Illinois Department of Natural Resources (IDNR). The task force would be co-chaired by Juhl and Rick Cobb with the public water supplies division of Illinois Environmental Protection Agency. The task may be convened by the governor or by the Juhl as director of IDNR’s water resources office. Since 1983, the drought task force has been activated nine times, most recently from June 2005 through May 2006.

Ryan Williams, left, holds a healthy stalk of corn from the irrigated portion (shown in background) of this 40-acre field near Carmi in White County while his father, Jason, holds a stalk from the nonirrigated portion of the field. They farm with Jason’s brother, Jerry, and Ryan’s brother, Travis. (Photo by Ken Kashian)


FarmWeek Page 4 Monday, July 2, 2012

DrouGhT

Thresholds must be met Drought intensifies; crops ‘going downhill fast’ to trigger emergency A very bad situation is expected to get worse as release of CRP acres drought conditions in the state BY DANIEL GRANT FarmWeek

BY KAY SHIPMAN FarmWeek

The Farm Service Agency (FSA) cannot release certain Conservation Reserve Program (CRP) acres for emergency uses until thresholds are met. This includes early release of CRP acres for emergency grazing, Don King, chief conservation program specialist with Illinois FSA, told FarmWeek last week. Recently, the FSA national office released guidelines for the early release of CRP acres for emergency grazing only — not for hay production, King said. Higher thresholds are required for early emergency release during the primary wildlife nesting period compared to an emergency haying and grazing release that would occur after Aug. 1 in Illinois. For a county to be eligible for early release, its FSA committee must first document a 40 percent or greater loss of normal hay and pasture production, and all members of the Natural Resources Conservation Service (NRCS) state technical committee must concur unanimously, King said. Once concurrence is obtained, Illinois FSA can then forward a request to the national office for consideration. “We are aware of the deteriorating situation in Southern Illinois and have asked producers to contact their local FSA committees. We also are in contact with the state FSA office, the governor, and the Illinois director of agriculture,” said Illinois Farm Bureau President Philip Nelson. “We are doing everything we can to address producers’ needs at this very difficult time,” he added. By mid-week, eight Southern Illinois counties had submitted preliminary drought reports to the state FSA office, said Doug Bailey, FSA chief compliance program specialist. Once a decision is made to request a USDA designation, the county FSA offices will be asked to submit more in-depth reports. The governor has the authority to make such a decision. The state FSA office is monitoring the situation, Bailey added. FSA always has procedures that county (FSA) committees must use “to request emergency haying and grazing of certain CRP acreage in periods of extreme drought or flooding,” King said. The starting date for any haying and grazing emergency release is after the nesting period, which ends Aug. 1 in Illinois. Producers are advised that FSA approval is needed before starting any type of emergency haying or grazing on CRP acres, and they should contact their local FSA office for specific details. “As soon as anything can be done on a county-by-county basis, the information will be posted online and also will be available in the county offices,” King said.

JAPANESE BEETLE DAMAGE

A Fayette County soybean field shows damage from Japanese beetle feeding last week. On average, Japanese beetle activity is about two weeks earlier than usual. (Photo by Ken Kashian)

were projected to intensify with the onset of a heat wave late last week and no major rain systems in sight. Crop ratings in Illinois last week deteriorated to the lowest levels so far this season and likely will get worse without measurable rain. The portion of the crops in the state rated good to excellent last week dropped from 52 percent to 37 percent for corn and from 47 percent to 35 percent for beans. Meanwhile, nearly half (49

County. “Some of the early (planted) corn is too far gone, I don’t think there’s any chance

‘Some of the corn that was planted early already tasseled and shot blanks.’ — Jason Williams White County farmer

percent) of all pastures in the state last week were rated poor or very poor while the majority (67 percent) of the sorghum crop statewide was rated poor or very poor. “Things are going downhill fast,” said Jason Williams, 51, a farmer from White County in Southeastern Illinois. “Some of the corn that was planted early already tasseled and shot blanks. And we’ve got soybeans that are turning yellow and dying. I’ve never seen anything like it.” Unfortunately, the scene was very similar in Southwestern Illinois and other parts of the state. “It’s bad. It’s really bad,” said Gary Tretter, a farmer and IFB Young Leader State Committee member from Jackson

for it. There are big bare spots all over the place.” The U.S. Drought monitor last week indicated most of Northern Illinois is in a moderate drought, Central Illinois is in a moderate to severe drought, and many of the southern countries are in an extreme drought. Emerson Nafziger, University of Illinois crop systems specialist, last week noted 17 percent of the state’s corn crop was pollinating, which was a record-high for June 25. However, many cornfields have plants that are just 5 to 6 feet tall and tasseling. Many of those fields are expected to have yields that are well below average. “Plant height is the best visible indicator of how well the

plant has been able to take up the water it needs to expand cells,” said Nafziger, who noted short plants may not be able to form the complete canopies needed for maximum yield. Soybean development was ahead of schedule last week as 11 percent of the crop was blooming compared to the five-year average of 3 percent. “An early start to soybean flowering generally is positive, but we remain concerned about how water shortages might affect soybean pod formation,” Nafziger said. “If we continue with little or no rainfall, abortion of flowers or pods likely will continue.” Tretter, who owns cattle, noted pastures in his area are brown and there are cracks in fields 4 inches in diameter and several feet Gary Tretter deep. He expects to be forced to start feeding hay to his cattle within the next 10 days. “I’ve already heard talk of people selling cows because there’s not enough hay to make it to next spring,” he added.

Cracks 12 inches deep run through this field near Murphysboro in Jackson County. Farmer Gary Tretter reported the cracks had been deeper before he traveled over them while planting double-crop soybeans. (Photo by Ken Kashian)


Page 5 Monday, July 2, 2012 FarmWeek

CUBA Why Cuba?

‘Back yard’ benefits await Illinois farmers

BY MARTIN ROSS FarmWeek

It’s a small nation, a mere 42,426 square miles (Illinois has 57,918). Incomes are low, and a socialist government controls most production and food allocation outside the island’s currently moderate tourist trade. One, therefore, might ask, from a market standpoint, why Cuba? The answer is closer than it may seem. About 90 miles from Florida, to be precise. This week, Illinois Far m Bureau’s Cuba Market Study Tour concludes a four-day exploration of Cuban agriculture, infrastructure, and opportunity. Pulaski County grain far mer Robert Inman, one of 18 far mers participating in the tour, sees Robert Inman expansion of commerce and communications with Cuba as “a very promising step in the trade process.” “They’re right off our border — to me, it looks like we need to be trading partners with each other,” Inman said. “It’s an interesting area — it’s one of those places where we really don’t know anything about the people. I’d like to make some contacts, meet the people, and, hopefully, extend the hand of trade and work with them.” See next week’s Far mWeek for details of the IFB tour. As a cow-calf producer with a 100-hen layer flock and a small boar goat herd, Cook County Far m Bureau Commodity and Marketing Committee member Gerry Kopping notes the Chicago collar is “a little more diversified” than much of the rest of the state and its far mers are more Gerry Kopping attuned to niche potential even in smaller markets. Amid a flagging economy and resultant stagnant

suburban growth, some Chicago-area acres previously taken out of production have been moved back into grain, the Lemont farmer noted. “We have a lot of produce in our area that we’re interested in exporting,” Kopping added. Cuba may be a largely untapped U.S. market, but countries including Brazil have gained a healthy commercial head start. Study tour participant Joe Zumwalt, a cattleman who far ms in the Mississippi River floodplains, toured Brazil and its “pretty impressive and amazing port facilities” at Sao Paolo. Joe Zumwalt As a “production-rich” nation, Brazil has recognized the need for a high-volume

Martin Ross

Eighteen farmers flew to Havana, Cuba, late last week as part of Illinois Farm Bureau’s Cuba Market Study. The group included IFB board members Steve Hosselton and David Serven. The tour, two years in the making, is designed to help Illinois farmers increase export opportunities. FarmWeek agricultural affairs editor Martin Ross accompanied the group to the island nation and will provide reports on the trip in subsequent issues.

export infrastructure, Zumwalt said. He noted the volume of soybean oil and meal distant Brazil currently ships to Cuba, “in our back yard.” “One of the big gest advantages for the companies that export from the Gulf or river ter minals is that product doesn’t have to be loaded on a Panamax vessel to enter Cuba,” Zumwalt said. “We can use that (U.S.-Cuban) intercoastal waterway and take it on barges loaded right

here in Illinois. “It’s a direct link without as much shipping cost, let alone the fact that we’re thousands and thousands of miles closer than ports in Sao Paolo. We need to start to cater to some of these closer markets that can use that barge traffic.” As a grain far mer, Pulaski County’s Inman hopes to see Cuba expand livestock activity both for domestic consumption and the tourist trade. As a past livestock producer, Inman

sees the U.S. offering Cuba’s animal sector key expertise and wide-ranging genetics and/or breeding stock. The cultural/genetic exchange need not end there: Inman, a one-time seed producer, sug gests Cuba could provide an ideal tropical environment in which to conduct crop trials and generate seed stock for U.S. use. Puerto Rico already is home to a growing Caribbean “bioagriculture cluster” that includes Dow Agrosciences, Syngenta, and Bayer. Monsanto and Pioneer are expanding biotech and varietal research-development facilities in the U.S.’ territory. “This is an interchange (between Cuba and the U.S.) that could benefit both ways,” Inman sug gested.

How we got here Cuba’s modern history began roughly a half-century ago with a revolution. In recent decades, abrupt adaptation and gradual evolution have driven change within the socialist nation and in its relationships around the globe. “They don’t tend to change much in Cuba on the economic policy front unless they’re forced to change,” University of Florida economist William Messina told participants in Illinois Farm Bureau’s Cuban market study tour recently. “Clearly, in 1989, the fall of the Berlin Wall and the subsequent collapse of the Soviet Union were huge catalysts for change. Cuba lost its tremendously generous (Soviet) subsidies, and its economy collapsed. “The ag sector was hit especially hard because it relied so heavily on (Soviet) agrichemicals, oil, mechanical equipment, and spare parts. “As agricultural output decreased dramatically, a large black market for food developed, and the problem with the black market was, it was all hard-currency dominated. “Cuban citizens who didn’t have access to hard currency couldn’t access black market food supplies, and food shortages became so critical that it generated significant social unrest.” Here’s a timeline that helps illustrate Cuba’s shifts in food philosophy and policy:

1959: President Fulgencio Batista was ousted in January 1959, giving way to a new administration under Fidel Castro. The U.S. imposed a trade embargo against Cuba in 1960 and expanded it in 1962 following the Cuba missile crisis. By 1965, Cuba

had evolved into a single-party state under the Communist Party of Cuba. The ’70s and ’80s: Cuban agriculture had come to be dominated by large, input-intensive state far ms, which accounted for 85 percent of production. Sugar exports generated more than 80 percent of Cuba’s total export earnings, bolstered by sales to the Soviet Union and Eastern Europe at preferential prices. All far ms operated under production quotas, with far mers required to sell everything to the government. Citizens bought their food at stringently regulated “ration stores.” 1989: The wall fell, and Soviet support continued to dry up. In 1992, the U.S. tightened its existing trade embargo with Cuba, reportedly in the

hope of encouraging Cuban democratization. 1993: The Cuban government began the break-up of state far ms in favor of more productive cooperatives. 1994: Following the “Rafters Crisis” — a mass exodus of Cubans to the U.S. — Cuba allowed operation of open markets to sell agricultural production above quota levels. 1996: Tourism surpassed the sugar industry as the largest source of hard currency for Cuba. By 1997, a prohibition on contact between tourists and Cuban citizens had been lifted. 2000: U.S. President Bill Clinton approved the sale of food and medicine to Cuba, under strict cash sale requirements and a one-way, U.S.-toCuba trade policy. Castro was angered by those conditions, stating Cuba would refuse to buy U.S. goods. 2001: Hurricane Michelle strikes Cuba. The Cuban government declined a U.S. offer of emergency food aid but asked instead to buy U.S. food “to replenish stocks lost in the storm.” 2001-2003: U.S. exports to Cuba increased significantly. The U.S. became Cuba’s No. 1 supplier of food and ag products in 2002. Sales leveled out between 2004 to 2006, as Cuban officials reacted to U.S. re-examination of Cuban trade policies, but peaked in 2008 after the Cuban government became more comfortable with U.S. ter ms.


FarmWeek Page 6 Monday, July 2, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: It was another very hot, dry, dusty week with no rain. With no rain and 90-plus to 100 degree temps all week, the corn crop potential declined every day. The corn on the lighter soils is suffering the most and rolled up most of the day. The corn on the better ground that looks good from the road is much shorter than normal. The soybeans are hanging in there and hopefully can recover some yield with some later rain. (Some parts of the northern third of the state received rain Friday) We tried our wheat, but it was way too wet, 18 percent, and several neighbors said the same thing. I’ll give you more yield reports next week. Crop watching this summer has turned into watching the weather report and hoping and praying for rain. Pete Tekampe, Grayslake, Lake County: It was another hot, dry week in Lake County. No rain for the week. Spotted showers are possible for the next six days. Corn and beans are just hanging on. Some wheat has been cut, but I haven’t heard any yield reports. Some second-cutting hay has been baled. The yield wasn’t very good, but we had very good quality. Hopefully, we will get one of those showers out of this forecast. If we don’t get some, it will be a bad report next week. Leroy Getz, Savanna, Carroll County: No rain for the week and the 100-degree temperatures are hurting this crop more each day. Wheat and rye are being combined. Some very beautiful dry straw is being baled. Second-crop haymaking and some third-crop chopping were done last week. No preservatives needed. The dairy cows do not like this hot weather and neither do those of us who have to milk them in this heat. Have a safe Fourth of July. Ryan Frieders, Waterman, DeKalb County: It was another week of hot temperatures and no rainfall. On Friday my thermometer read 102 degrees. Japanese beetles are defoliating soybeans and chemicals are being sprayed to control them. The corn leaves roll daily to try to conserve what little moisture there is. Larry Hummel, Dixon, Lee County: My question for the week: The varieties of corn that are rolled up the most, is that a good defensive trait or the lack of an offense? I fear it is the latter. After digging up roots on several different varieties, there is a huge difference in the size of the root system. Some of the problem is the traits that are used to control rootworms and also insecticides that are not activated and are just lying in dry dirt. Of course, the dry weather is an underlying factor for both. For Lee County, the chance of an average crop has come and gone. What’s left to be determined is how far we slide down the yield ladder. Wheat harvest has just started and the yield report from the one guy who I know who raises any is 95 bushels for one field and 100 for the other. Thanks, Jim. Joe Zumwalt, Warsaw, Hancock County: Continued excessively hot and dry conditions are causing extreme stress on both the corn and soybeans over all of Western Illinois. While I am still impressed by how well the crops look, the heat and dryness are taking their toll. Much of the corn is beginning to pollinate and the heat may have a severe impact on the viability of the pollen. Japanese beetles are working on the soybeans and the corn silks. Aerial applicators are beginning fungicide and insecticide passes, but it makes a producer question how much more to throw at a stressed crop. I hope everyone finds a cool place to celebrate the upcoming holiday. Happy Independence Day.

Ken Reinhardt, Seaton, Mercer County: Sunday morning (June 24) came with some unexpected rainfall. Storms tracked through the center of the county north to south with some 3.5-inch totals. We told dad it was the best present ever for his 84th birthday. While amounts tapered off to a few tenths on the edges of the storm track, any amounts were much appreciated. Tassels are appearing in many cornfields and the earliest fields are silking. The few wheat fields were harvested with excellent yields. Seaton is a hot spot for Japanese beetles this year. Most of the soybeans have been sprayed. Jacob Streitmatter, Princeville, Peoria County: Hot and dry across the area. No rain, high heat, and a nice dry south wind — perfect conditions to further deteriorate the corn crop. Soybeans stopped growing and corn is trying to tassel or just starting to shoot tassels. Another week and all the light spots in the fields will be totally worthless, and a week after that there will not be a nice warm feeling in the countryside. On a positive note, I don’t have to mow the yard very much. Tim Green, Wyoming, Stark County: Hot and dry. We were at 100 degrees on Thursday. No rain, and it really started to show Thursday with the heat. We probably are taking bushels off our crop right now. The beans are struggling. A lot of Japanese beetles are present so a lot of farmers sprayed for them. A few tassels showed up last week in the cornfields, so we are watching the Japanese beetles in the corn, too. Mark Kerber, Chatsworth, Livingston County: More of the same, but hotter. Crop conditions have deteriorated some with dryness and heat. Soybean spraying is getting done between windy days. Soybeans are short and starting to flower. Corn also is short and starting to tassel in some areas. A rain would really change things. Yards have dried up, along with roadside mowing. Seems like we are finally caught up from planting, fertilizing, and spraying of this crop. Now it’s up to Mother Nature to bring it along. Wheat harvest was a good one. Dry conditions and high yields. Some bale the straw while others spread the residue back onto the fields for humus. Ron Haase, Gilman, Iroquois County: Just as some cornfields began to pollinate and soybean fields began to flower, it reached 100 degrees Thursday. The next 10 days are predicted to be above 90 degrees with little chance for rain. We received 0.03 to 0.06 of an inch of rain on Sunday, June 24. Almost all of our rain for the month of June came on June 17 when we received a range of 1.1 to 1.5 inches on our farms. Corn in the area is shorter than normal and ranges from the V7 growth stage up to the R1 (silking) growth stage. Most cornfields in the area will be pollinating or begin pollinating during the next 10 days. Soybean plants are short as well. Area soybean fields began to hit the R1 — the beginning flower growth stage last week. Post-emergence herbicide applications and row-crop cultivating were being done in soybean fields over the past week. The local closing bids for June 28 were: nearby corn, $6.70; new-crop corn, $6.02; fall 2013 corn, $5.24; nearby soybeans, $14.62; new-crop soybeans, $13.79. It is challenging to take advantage of the higher prices as the heat and drought continue. Brian Schaumburg, Chenoa, McLean County: June closes out as an enigma. What started out as the best-looking crop ever ends with people contacting the crop insurance agent with coverage questions. Corn is short, stressed, and if it pollinates, kernel abortion will be an issue. Rootworm beetles are waiting to feast on silks and pollen. The trend of high heat and no moisture will not relent. Insecticide and fungicide decisions are coming soon. Corn, $6.83, fall, $6.25; soybeans, $14.75, fall, $13.84; wheat, $7.12.

Steve Ayers, Champaign, Champaign County: Our “five minutes before it’s too late” countdown is down to two, as tripledigit heat grips much of the midsection of the nation. Corn planted April 13 tasseled early last week, just in time for the triple digit temps. Beans are finally filling in, and herbicide control looks good so far. USDA has our crop reporting district topsoil moisture 15 percent very short, 51 percent short, and 34 percent adequate. A real concern is the subsoil moisture at 15 percent very short, 56 percent short, and 29 percent adequate. Also, corn is 1 percent silked and beans are 20 percent blooming. May your Fourth of July festivities be rained out! Wilfred Dittmer, Quincy, Adams County: Hello again from central Adams where we are still running on fumes from a past empty rain gauge. In fact, we have received only about 8 inches of rain since last July and no snow this last winter. Northern parts of the county have fared a little better but nothing to write home about. I don’t know how the corn is doing as well as it is considering how short the subsoil is on moisture. I’m sure the bushels are coming off the top every day. Most drilled or narrow-row soybeans are canopied over. There still are some Japanese beetles around. The bushels are still a long way from the bin. Have a safe Fourth of July. Carrie Winkelmann, Tallula, Menard County: It is 8 a.m. Friday and 90 degrees with no sign of cooler temperatures or a rain. Drought is definitely here and its effects are apparent in the corn and soybeans. Corn is in the middle of pollination. Japanese beetles are still causing problems but have not reached a threshold for spraying in the corn. We have spot sprayed minimally in soybeans. We sprayed alfalfa last week for leafhoppers. I was lucky to get to travel over to neighboring Mason County and see the green bean harvest in action for Del Monte. Very interesting. (See picture on page 8) Tom Ritter, Blue Mound, Macon County: It was another dry week with no precipitation. Same recording I’ve been using for eight weeks. Corn is in the middle of tasseling and pollination. These extreme temperatures, as well as the warm winds and forecast for numerous 90-degree days to follow are definitely taking a toll. The corn is rolling, but also looking a little paler green. Soybeans seem to be surviving a little better and continue to grow and are starting to close the row, but we still will need major rains to have a decent bean crop. Farmers’ biggest concern with corn, of course, is the dryness and the heat coming at pollination. There is some aerial application of fungicides being done on the corn. Todd Easton, Charleston, Coles County: There is just no good way to say it. We are in trouble with this crop, and it is hard to watch it happen. Mother Nature has turned the heater and dehumidifier to maximum and weather forecasts show no change for an extended period of time. Cornfields across the area are 75 percent pollinated but showing more and more stress as the temperatures climb. At this point, a crop that had great potential is going to fall backward very quickly. If the forecast holds true, things will be just plain ugly. Soybeans fields also are showing a lot of stress and little growth. Potential remains for awhile in those fields if the weather would make a drastic change, but I’m not counting on it. Agronomists are encouraging producers to keep an eye out on fields for spider mite infestations that may result from the persistent drought. I guess we needed something else to worry about. Jimmy Ayers, New City, Sangamon County: It’s been extremely dry and a lot of corn is really suffering. Beans don’t seem to be suffering nearly as badly. The 30inch rows still have a lot of sun hitting the ground and drying things out worse. Grass is dying in the yards. Probably 50-60 percent of corn has tasseled and quite a few people are worried about tasseling in 103-degree heat. We’re looking at two or three days of triple-digit heat. It doesn’t appear to be much relief behind that. The wheat that I’m aware of is harvested.


Page 7 Monday, July 2, 2012 FarmWeek

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: Dry, dry, dry, and hot, hot, hot. The corn we planted in March and early April is pollinated and we still have potential for a good crop. But I have no idea how the corn is still green and how long it can stay that way. Did I say it was hot? Later-April corn is not looking so hot. Hearing talks of spider mites in the beans, but they are below economic thresholds as of now. Celebrate your independence and freedom this week with the family, and while you are at it, thank a veteran. I’m quoting Steve Ayers who I saw on WCIA news last Thursday morning. He said: “We as farmers do about 15 percent of the work it takes to make a crop; the rest is out of our hands.” Doug says, “I believe that is right and it’s in the Lord’s hands now. So I think praying will do us more good than dancing right now.” Our prayers go out to those who are disking or plowing up corn to the south of us in hopes they can get a rain and maybe put in a soybean crop and salvage something from this mess. Also have a friend in Colorado whose house was close to being destroyed by fire. Over 300 homes in his locale were destroyed. At least we don’t have to deal with that kind of problem. David Schaal, St. Peter, Fayette County: The heat is on. Temps above 100 degrees with 15-20 mph winds and humidity down in the teens. Crops are deteriorating rapidly. Not a whole lot else to say. Hoping spider mites are not on the way, but heard today they are east of us and working on the soybeans hard. We are hoping for rain but nothing in sight. Jeff Guilander, Jerseyville, Jersey County: As I was looking over the USDA numbers, I realized the addition of a few acres of corn is not going to make up for the 20 percent of yield we are in the process of losing (being a little optimistic there). Non-harvested acres have never been a factor in this area, but at this point there is a distinct possibility they will be this year. March corn is trying to fill, earlyApril corn is trying to finish pollinating, and late-April and early May-planted corn is dying. Beans are struggling but still hold some potential if the rains show up. The bright side, it seems the insects and weeds can’t even break through this heat. FYI — I hear the Calhoun peach crop is ripe and ready.

Dan Meinhart, Montrose, Jasper County: It was another very hot and dry week. Temperatures in the area were reported up to 107 degrees on Thursday. The next several days are expected to be above 100. Corn and beans are under dire stress, especially the corn that is tasseling. Some of the doublecrop beans have actually emerged. There is not much field activity taking place, but road ditches are being mowed and machinery being repaired. It is almost too hot to do anything. Not much promise of rain in the forecast. Dave Hankammer, Millstadt, St. Clair County: On June 28, temps reached 108 degrees, which is now considered the warmest temperature on that date ever for the St. Louis region. Triple-digit temps and no precipitation are in the 10-day forecast. The corn crop continues to show signs of heat stress as it enters the pollination stage. There still is moisture 2 to 3 inches below the surface, but it is disappearing as this crop continues to develop under the dry heat. The great concern now is how well the crop will pollinate under the extreme heat. First-planted soybeans are now approximately 6 to 9 inches in height and developing a canopy. Most farmers have finished applying post-treatment of herbicide to control weeds in the fields prior to the excessive heat. Emergence of the double-cropped soybeans has been good and they now are a couple inches tall. They need a shower to keep them growing. Pastures in the area are turning brown, and some farmers are starting to feed hay to their cattle much earlier than normal. Also, water levels in some shallow wells have dropped, forcing some cattle farmers to haul water to supplement their supply. Local grain bids are corn, $6.50; soybeans, $14.70; wheat, $7.04. Have a happy and safe Fourth of July. Rick Corners, Centralia, Jefferson County: It’s 4 p.m. Thursday afternoon and my thermometer is reading 106.9 degrees. I figured I would just as well go ahead and make my report for the week because nothing much is going to change crop-wise between now and Friday morning. I think by today (Monday) the corn in this area will be past the point of no return. The double-crop beans we planted a couple of weeks ago, and then got a little shower on, came up and looked pretty good. But now they are dying and disappearing. One thing about this, the young farmers don’t have to hear us old geezers talk about how bad it was back in the day because before this is over, this may be the worst ever.

Kevin Raber, Browns, Wabash County: No rain this past week. Extremely dry soils and now record-breaking high temperatures. No rain in the month of June and the outlook for July doesn’t seem too good.

Dean Shields, Murphysboro, Jackson County: Dry weather is still in our forecast for the next few days. Thursday’s temperature was 103 and the prediction for Friday was 105. It’s making a lot of the corn die. There are several acres like that in Jackson County, especially in what we call the hill ground. Soybeans are growing very little, if at all. The double-crop beans don’t seem to be germinating and none is out of the ground after three weeks. We are definitely very, very dry in Jackson County, and we sure would like to have a rain — so let’s hope for one. Randy Anderson, Galatia, Saline County: Burned up are the two words to describe this! Yards and pastures crunch when you walk across them. Watering cattle and feeding hay is the daily chore just like in the winter. My estimate on my corn crop is anywhere from a total loss to maybe 25 bushels per acre. And for soybeans it is 20 bushels and they’re losing ground each day. The mood in the country side is somber. The only positive thing is my son is learning how to use the backhoe by digging out one of our ponds. Brings back memories when I first learned to use one. Ken Taake, Ullin, Pulaski County: Another week of even hotter and drier weather here in deep Southern Illinois. We’ve had no rainfall and there is none in the forecast. Corn is firing from the bottom and it’s lost its color. Soybeans are just holding on. This is certainly the driest I can remember this early in the season. Temperatures above 100 degrees were forecast through the weekend. Please take time to try to stay cool and not get overheated. Also, take time to celebrate the Fourth of July and remember the great things our country offers us and the freedoms that we do have. Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com

Study: Consumers benefit from more efficient pork production BY DANIEL GRANT FarmWeek

Consumers who believe hog farmers should drastically alter production practices should be careful what they wish for, based on results of a study released last month. The study, conducted by university and industry scientists, found that current pork production methods, which have received negative publicity in recent months, are much more sustainable than 50 years ago. “T he pork industr y has been very successful in significantly reducing its environmental impact and use of natural resources by nearly 50 percent per 1,000 pounds o f p o r k p r o d u c e d ,” s a i d Garth Boyd, an environmental researcher who led the study, which was funded by t h e N a t i o n a l Po r k B o a r d (NPB). Re s e a r ch e r s s t u d i e d a l l resources needed to produce

each pound of pork and found U.S. pork producers in the past 50 years decreased the carbon footprint by 35 percent, reduced water usage by 41 percent, and reduced the amount of land needed for pork production by 78 percent. “The fact that we’ve been able to grow production at such an incredible rate, keep consumer prices fairly steady, and reduce our carbon footprint is an incredible story,” Jarrod Sutton, assistant vice president of marketing for NPB, told FarmWeek. But pork production methods in recent months have been under attack as campaigns led by animal activist groups have persuaded a number of food retailers and restaurant chains to adopt policies that call for the elimination of gestation stalls from pork production. A separate survey of the hog industry, conducted by

Ron Plain, University of Missouri Extension economist, found the majority of U.S. sows (nearly 83 percent) currently spend a portion of gestation in stalls. If pork producers are forced to change production systems, the result likely will be higher production costs for farmers and more expensive g rocer y bills for consumers, according to Plain’s study. “(Food retailers) have a tremendous amount of equity built in their brands,” Sut-

ton explained of the recent t r e n d by f o o d r e t a i l e r s t o establish production policies. “T he threat of a neg ative smear campaign is enough to warrant attention and engagement with animal activist groups.” N P B h a s r e s p o n d e d by placing greater emphasis on a customer communication plan. “They (customers) never hear the other side,” Sutton said. Current production practices “help control carbon emissions, improve food

safety, and protect the animals. “That’s the discussion we need to have with key customers,” he continued. “So they understand and appreciate why we do what we do (in the pork industry).” The pork production study found a 29 percent increase in hogs marketed in the past 50 years with a breeding herd that is 39 percent smaller. Feed efficiency during that time improved by 33 percent, according to the study.

Extension, NRCS pasture walk July 12 A pasture walk will be held Thursday, July 12, at the Guenzler Farm near Elizabeth in Jo Daviess County. The event, sponsored by the University of Illinois Extension and Natural Resources Conservation Service (NRCS), will be held from 6:30 p.m. to 8:30 p.m. The farm address is 8449 S. Massbach Road, Elizabeth (just north of Massbach Ridge Winery). U of I and NRCS specialists at the event

will address current grazing plans, information about the Environmental Quality Incentives Program (EQIP), pasture management techniques, forage quality, environmental benefits, and general goals for beef producers. Cost for the event is $5 per person. To register, contact the Jo Daviess U of I Extension office at 815-858-2273 or visit the website {http://web.extension.illinois.edu/jsw}.


FarmWeek Page 8 Monday, July 2, 2012

coNSUmER oUTREAcH

Food conversations plant seeds of consumer understanding BY KAY SHIPMAN FarmWeek

Katie Pratt, a Dixon farmer, recently planted a simple idea for an effective way to connect with non-farmers — grow a seed. “If everybody could plant a seed, watch it grow, and eat what they produce, it would help,” Pratt, a Lee County Farm Bureau member, said during a national disKatie Pratt cussion of farming and technology. Pratt participated in a twohour food dialogue in Los

Angeles hosted by the U.S. Farmers and Ranchers Alliance. Her “plant-a-seed” idea came in response to concerns about consumers’ lack of understanding about food production. Pratt admitted that she initially had qualms about participating in the event: “I was a little concerned about being a Midwest corn farmer discussing biotechnology in California. That didn’t sound like a great idea.” However, her fellow farmers on the panel were curious about each others’ operations and practices. An Environmental Defense Fund representative discussed his group’s research into nutrient applica-

tion and water quality. “I made a point of saying that farmers are open to unbiased, solid research and findings that might point us toward a different method of farming,” Pratt noted. Her experience in California “definitely gave me reason to look closer at the technology we take for granted on the farm and to explore the reasons why we actually use it and how it helps us in every phase of our management,” Pratt said. During the discussion, she shared the benefits of automatic-steering tractors. In Illinois, enlightening conversations among farmers and consumers have been sparked by the Illinois Farm Families

Thank you to the 2012 IAITC Golf Outing Sponsors & Participants

The IAA Founda on’s 16th annual IAITC Golf Ou ng was held on June 14, 2012 at Wolf Creek Golf Club and Elks Country Club in Pon ac, IL. We had another sunny day with over 180 golfers in tow for this annual affair. Yet again, this event was jam-packed with camaraderie, fun and success — all for the benefit of the Illinois Agriculture in the Classroom program. The event’s live and silent auc ons raised over $3,000 for IAITC. Rosie Duffy, a Livingston County volunteer famous for her delicious homemade pies, raised over $2,000 this year! A Chicago Bears jersey autographed by Dick Butkus also made it’s mark at our live auc on raking in a whopping $550 for Illinois Agriculture in the Classroom. During the COUNTRY® Financial sponsored banquet, thousands of dollars in raffle prizes and gi#s were dished out along with our tradi onal steak dinner. Par cipants eagerly listened for their names in hopes of winning the Grand Prize “Golf Get-a-way” in beau ful Galena, IL. Ten other lucky winners took home hundreds of dollars in cash prizes. Thanks to our many supporters of IAITC , raffle cket sales were over $1,800.

(IFF), and Pratt said she favors the interaction between farmers and IFF “field moms.” IFF is a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau. The field moms are urban mothers with questions about food production. Through her involvement with consumer outreach, Pratt said she has changed from being “a fact girl” who cited percentages and statistics to focusing more on values. “The general public has a romanticized view of the ‘good ole days’ on the farm,” Pratt explained. Those views are based on rural images “not from knowing how many ppm (parts per million) of herbicide are applied to a 200-acre field and why that is good for the environment and safe for food

production.” She continued: “When we (farmers) tell our stories, we must start with emotion and why we care. Obviously as businessmen and women, we are about the numbers, but we also care about our families and communities, our animals and our crops. That’s where the connection is made.” Farmers also should take heart from the farmer-to-farm conversations and continue listening, according to Pratt. “We are not alone in this industry — farmers are bound by our intimate relationship with Mother Nature and understand fully the challenges of navigating markets, policy, and regulation,” Pratt said. “Farmers — at least the ones I have met — are just good people.”

USFRA seeking ag ambassadors U.S. Farmers and Ranchers Alliance (USFRA) is accepting entries from farmers and ranchers to serve as agricultural ambassadors. Entries will be accepted through Sept. 8 at {www.FoodDialogues.com}. Ten to 15 finalists vying for the “Faces of Farming and Ranching” will be announced at a November 2012 Food Dialogues event in New York City. USFRA is seeking farmers and ranchers who are eager to share their stories with others and already are sharing those stories. Farmers and ranchers who raise a variety of foods with different systems, on different scales, and in all areas of the country are encouraged to apply. The November announcement will start a public online

voting period with site visitors voting for their favorite candidates. Those votes will be factored into the final selection. Winners will be announced in early January 2013 based on votes and the recommendation of a judges’ panel. The public will come to know the winners through national media interviews, advertising, and public appearances. For their time, they will receive a $10,000 stipend and a $5,000 donation in their name to their preferred agriculturerelated or local charity. Entrants must submit an online application and include a home video of less than three minutes that describes themselves and their farm or ranch. More information is available at {www.FoodDialogues.com}.

BEAN HARVEST UNDER WAY

Thank you to all of our par cipants, volunteers, commi%ee and sponsors for the 2012 Golf Ou ng for Illinois Agriculture in the Classroom. Please join us again next year!

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A load of green beans is dumped into a waiting wagon on a field farmed by Jason Miller of rural Mason County last week. The field is grown under contract for Del Monte Foods Co. Watching the harvest were 19 teachers who were participating in a Summer Ag Institute. (Photo by Dee Dee Gellerman, Mason County Farm Bureau manager)


Page 9 Monday, July 2, 2012 FarmWeek

trade

Farm bill program seen as meat-marketing must BY MARTIN ROSS FarmWeek

U.S. producers hope to be on hand, bearing their wares, as Russia joins the international trading community. But future prospects could hinge on two key proposals before Congress: authorization of permanent normal trade relations (PNTR) with the former Soviet republic, and the 2012 farm bill. U.S. Meat Export Federation (USMEF) spokesman Joe Schuele hailed Senate approval of full Market Access Program (MAP) funding as part of its farm bill plan. Senators defeated a

proposal to slash MAP funds by 20 percent. The House Ag Committee reportedly plans to draft its farm proposal after lawmakers return to Capitol Hill July 11. MAP helps U.S. trade groups fund ag product promotion. It’s helped USMEF boost retail pork sales in Mexico as modern supermarkets and “hypermarkets” proliferate south of the border, and Schuele reported Central and South America’s growing middle classes are expected to spur similar retail/restaurant development and meat export growth. MAP is vital in enabling

USMEF to establish and maintain a “fixed presence” in markets such as Japan, Korea, the Middle East, and Russia, Schuele told FarmWeek. Having a senior staff member in Japan for 20-plus years, thanks in part to MAP support, has helped USMEF foster an “excellent relationship” with Japanese meat processors, he said. “Without these sources of funding, we would still be promoting (products) in those markets,” Schuele said. “But as far as having a permanent presence of people who are native to the market, who understand the regulatory systems, who have good

relationships not only with government officials but also with buyers, MAP funding is really critical. “(Without MAP), you end up kind of trying to chase markets when they’re ‘hot.’ Countries that do that don’t have the kind of success we’ve had.” Russia has been a challenging market, especially when it comes to poultry, pork, and beef sales. With MAP support, USMEF has been able to establish permanent offices in Moscow and St. Petersburg and hold beef and pork promotions in major cities across Russia’s eight time zones.

Russia’s entry into the World Treaty Organization (WTO) “probably isn’t going to eliminate every single trade issue,” Schuele conceded. But he already sees Russia being “more consistent and logical in how it sets up its regulatory policies,” and argues the WTO, along with congressional approval of PNTR, will offer the U.S. a solid “venue” to address Russian trade concerns. “This is definitely a step in the right direction, and we’re hoping the legislation that would make this a smooth transition will go through shortly,” Schuele said.

Seng: Japan the ‘real allure’ of Trans-Pacific talks Even without yet being admitted to the talks, Japan offers the “real allure” of a Trans-Pacific Partnership (TPP) agreement, according to U.S. Meat Export Federation (USMEF) President Philip Seng. TPP talks resume this week in San Diego. Seng was buoyed by the recent admission of Mexico and Canada to the east-west trade partnership. But he notes the U.S. already has made significant trade policy strides with its North American neighbors as well as its eight other original TPP members — Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Japan is viewed as a major candidate — and a desirable prospect — for TPP membership. The land-constrained island must import more of its food than it can produce, and given Japan’s

high disposable incomes, “it’s a market we have a lot of interest in,” Seng told FarmWeek. At the same time, Japan maintains a high 38.5 percent duty on U.S. beef and a “convoluted border protection (policy) when it comes to pork,” he noted. USMEF met recently with officials from Japan’s Agriculture and Livestock Industries Corp., a government-funded trading enterprise. “There’s tremendous potential in the Japanese market; there’s tremendous buying power. We see Japan’s going into the TPP as a positive,” Seng told FarmWeek. “The United States has a very good dialogue with Japan. There’s a good exchange of scientific information. There’s been a lot of work done in Japan in the last few years to harmonize their (food health and safety standards) with international

Eastern Illinois Electric Co-op awarded economic development loan An Illinois cooperative was among 27 recipients selected to received USDA loans and grants for economic development. USDA is providing the loan through Rural Development’s Rural Economic Development Loan and Grant (REDLG) program. “Our business development programs are geared toward providing resources to local organizations, non-profits, and units of governments who can identify local business needs are met,” said Colleen Callahan, Illinois Rural Development director. Rural utility cooperatives may apply for REDLG funds to support specific economic opportunities and essential services in their rural service areas. The Eastern Illinois Electric Cooperative is receiving a $650,000 loan for 10 years at zero interest. The money will be used to help buy equipment and build a 17,568-squarefoot expansion of a building owned by Illinois Ohio Properties LLC. A general contactor that specializes in the construction of pipeline facilities and pipe fabrication rents the building. The additional space will allow the company to expand its operations.

standards. For the most part, I think, we’ve had pretty good relations with Japan in resolving issues.” One example is the ongoing dialogue regarding BSErelated Japanese restrictions on U.S. beef imports. The Japanese government tentatively plans to ease its requirement that U.S. beef imports come from animals 20 months old or younger, setting a new 30-month threshold. While it has been sought by U.S. negotiators, that move from USMEF’s stand-

point should not be a “precondition” to U.S. support of Japan’s TPP membership, Seng argued. He sees no need to “make things political when they don’t need to be,” especially given the larger benefits of a TPP pact. According to Seng, those opportunities include modernization of sanitary-phytosanitary standards and procedures “in line with the 21st century,” helping head off unnecessary non-tariff trade barriers. He anticipates TPP partners promoting greater trade transparency, possibly

using electronic information systems. And prospective TPPrelated market gains would not be restricted to Japan. USMEF is working with Vietnam to put more U.S. pork on Southeast Asian tables. “We’re the U.S. Meat Export Federation — we’re 100 percent devoted to exports,” Seng stressed. “Anything that will help reduce border protection, enhance transparency, and improve our ability to sell, we’re enthused about.” — Martin Ross


FarmWeek Page 10 Monday, July 2, 2012

government

Appeals Court rules greenhouse rules justified BY MARTIN ROSS FarmWeek

A U.S. Court of Appeals ruling last week affirmed the U.S. Environmental Protection Agency’s power to regulate greenhouse gases (GHGs) but leaves the door open for a potential U.S. Supreme Court challenge. The District of Columbia Circuit Appeals Court essentially upheld EPA regulations aimed at limiting emissions of carbon dioxide and other gases purportedly linked to climate change. EPA has developed new rules based on its 2009 ruling that large-scale greenhouse emissions endanger the public’s health and welfare. The appeals court affirmed EPA’s authority under that “endangerment ruling,” as well as standards requiring greenhouse gas emission controls on model year 20122016 cars — i.e., EPA’s “tailpipe rule.” The court found “enough evidence” to justify the agency’s finding on a scientific basis, American Farm

Bureau Federation (AFBF) regulatory specialist Rick Krause said. “They gave EPA a lot of deference in terms of its determinations,” Krause told FarmWeek. “Trying to challenge scientific basis is pretty difficult, even if the science is selective. If there’s ‘enough’ there to justify what EPA did, the courts generally will go along with it. They’ll basically

say it’s not their role to interpret the evidence and evaluate it — that’s EPA’s job. That’s what happened here.” The court rejected arguments against EPA’s “tailoring rule,” a phase-in of requirements that new and modified power plants, petroleum refineries, and other industrial sources use “best available control technology” to control emissions.

That phased approach went into effect in 2012. While Krause suggested the tailoring rule would offer some leeway for “small emitters,” AFBF fears GHG regulations overall will raise energy/input costs and, eventually, could place farm operations at risk. The court argued that because of the purported environmental and societal

benefits of the tailoring rule, the parties that challenged it “would not suffer any harm as a result of it” and thus lacked legal standing to seek an actual ruling, Krause said. “So that question really is still open, if someone wants to challenge it,” he said. A coalition of 12 states, spearheaded by New York, supported EPA’s authority in the case.

Policy expert: Regulatory costs outweigh benefits BY KAY SHIPMAN FarmWeek

American society pays a price for government regulations but is not receiving an equal amount of benefits in return, a Heartland Institute policy specialist told agribusiness leaders in Bloomington last week. “Whenever a government agency claims there are economic benefits from regulations, it’s only looking at one side of the coin and through rose-colored glasses,” said James Taylor, a senior fellow

in environment policy with the free-market Chicago-based think tank. “I’m not saying there is no role for regulation. There is a place for regulation, but we are overregulated,” he said. From delays in approval for life-saving medicines to banning oil and natural gas production on federal land, Americans and the nation’s economy are impacted negatively by regulations, according to Taylor. He illustrated his point with an agricultural example: Seed production companies must

Some beneficial crops or plants never reach the market because of the amount of paperwork and/or the time required to comply with all the regulations. — James Taylor Heartland Institute policy specialist

comply with more than 10,000 pages of rules and pay between $6 million and $15 million to receive government approval to develop herbicide-resistant or insect-tolerant corn. Some beneficial crops or plants never reach the market because of the amount of paperwork and/or the time required to comply with all the regulations, Taylor said. In his home state of Florida, Taylor noted the Environ-

mental Protection Agency’s push for numeric nutrient standards for water quality will come with a hefty price tag. Floridians will pay more than $1 billion annually in compliance costs and an additional $1 billion each year in economic costs, he said. Florida farmers will have to reduce their use of nutrients — even where there is no sign of water degradation, he asserted.

State’s energy future remains bright Illinois relies on coal and nuclear sources for nearly all its electricity, but the state also has become a major player in renewable energy production, according Tom Wolf, executive director of the Illinois Chamber of Commerce’s energy council. Wolf discussed state energy issues with agribusiness leaders in Bloomington last week. The state obtains 47 percent of its electricity from coal and leads the nation in nuclear power, deriving another 47 percent of its electricity from that source, Wolf noted. The dichotomy of Illinois energy is its significant production of such renewable energy as biofuel and wind energy. The state ranks fourth in the nation for wind-generated energy; however, wind development is in limbo with the federal production tax credit set to expire at the end of the year, and Congress has made no decision on the tax credit’s future, Wolf noted. Two of the state’s newest energy sources are Prairie State Energy, a $4-billion high-tech, coal-fired plant that just opened in Washington County. This month, Invenergy LLC is expected to open the Grand Ridge Solar Farm in LaSalle County. It will be the largest solar farm in the Midwest and have capacity to produce enough energy to power about 2,900 homes. In Illinois, the energy sector is responsible for 50,000 direct jobs and 100,000 indirect jobs related to energy. About $80 billion in direct economic output in the Illinois economy is related to energy. Wolf said Illinois is “energy independent” for its electricity and heat energy sources. More than half, 55 percent, of the state’s transportation energy sources are “friendly” ones in the western hemisphere, he noted. Canada is the state’s No. 1 source of imported crude oil and Mexico ranks third. Illinois mostly relies on natural gas for heating at 81 percent. Canada is a major source of imported natural gas, according to Wolf. The state chamber’s goal for Illinois’ energy sector is to “create an environment in Illinois (in which) they can be successful,” Wolf summarized. — Kay Shipman


Page 11 Monday, July 2, 2012 FarmWeek

BIOFUELS

Ethanol the answer to automotive industry pressures? BY MARTIN ROSS FarmWeek

As automakers attempt to navigate toward leaner/greener-running vehicles, they continue to come back to ethanol. That’s according to Gary Herwick, president of Transportation Fuels Consulting Inc. of Milford, Mich. Herwick is a 35-year auto industry vet-

eran who specializes in engine development and vehicle emissions. The auto industry has long been intrigued by “a biofuels option,” the former General Motors (GM) engine specialist told FarmWeek. Faced with demanding federal fuel economy standards and pressure to improve emis-

E15 ‘will happen’ if value recognized Retail commercialization of E15 and other mid-level ethanol blends “will happen,” if energy needs meet industry “synergy,” argues Transportation Fuels Consulting Inc. President Gary Herwick. The U.S. Environmental Protection Agency this month cleared the final federal hurdle to use of 15 percent ethanol in 2001 and later-model vehicles, approving fuel companies’ potential “misfueling mitigation” plans designed to prevent or address E15 use in older vehicles. Herwick, who co-chaired the ‘A flexible-fuel vehiEmissions Committee of the cle is designed as Coordinating Council kind of a compro- — a group of Research five major U.S. m i s e b e t w e e n auto manufacturers and oil g a s o l i n e a n d companies — told FarmWeek higher concen- recent joint auto/oil industry trations of renew- analysis “really didn’t show any issues” with E15 use. able biofuels.’ But because automakers did — Gary Herwick not design vehicles specifically Consultant to use E15, Herwick suggests some “liability concerns” linger in Detroit. The former General Motors engines specialist notes a continued commitment among U.S.-based auto manufacturers to production of “flexible-fuel” vehicles that run on E85 (85 percent ethanol gasoline). Foreign carmakers are less driven, but Honda, Nissan, and Toyota also offer E85 models. “As far as taking advantage of the benefits of oxygenated fuels (such as mid-level ethanol blends), that’s a little different thing,” Herwick told FarmWeek. “A flexible-fuel vehicle is designed as kind of a compromise between gasoline and higher concentrations of renewable biofuels. “The opportunity out there is to get into a position where a (standard) engine can be purpose-designed for higher concentrations of ethanol, to take advantage of the extra octane that ethanol blends offer. “There’s a potential synergy between auto manufacturers, ethanol producers, and the agricultural industry to provide, say, a mid-level blend of ethanol — not 10 percent, not 85 percent, but something in between. I think higher blends of ethanol will happen. Higher blends of ethanol make a lot of sense, for a lot of reasons.” — Martin Ross

Illinois farms to receive USDA energy funds

Nine Illinois farms were among 450 nationwide selected for USDA renewable energy funding, it was announced last week. Rural Development administers the Rural Energy for America Program (REAP). The Illinois farms will receive money to upgrade existing grain dryers. They anticipate energy savings ranging from 37 to 49 percent. Eight of the awards were

grants ranging from $9,742 to $19,825. Grants can provide up to 25 percent of the cost of energy efficiency improvements. One farm will receive a $331,958 loan to cover 75 percent of the cost to update a grain dryer. “Recipients will use the funding to replace outdated and inefficient equipment with renewable energy technologies,” said Colleen Callahan, Illinois Rural Development director.

sions, GM, Ford, and Chrysler are taking a fresh look at biofuels, Herwick said. Automak-

gas emissions, as well. “There probably isn’t a better way to reduce greenhouse

ers are eyeing various technologies, including downsizing and “turbocharging” engines, to increase fuel efficiency. That approach would demand use of higher-octane fuels. Illinois Corn Marketing Board Board Executive Director Rod Weinzierl anticipates a possible push for a 95-96 octane standard gasoline blend vs. today’s 87-92 octane levels. Pure ethanol has a 113 percent octane rating. “Both current fuel economy requirements that run from 2012 to 2016 and future ones from 2017 to 2025 are not just mile-per-gallon requirements,” Herwick stressed. “They’re requirements to reduce greenhouse

gas emissions from automobiles than renewable biofuels. That’s something the agriculture industry, the biofuels industry, and the auto industry have in common.” Carmakers need four to five years to design and develop a new “engine platform,” Weinzierl said. They must determine over the next 12-30 months whether a downsized, supercharged, high-octane platform is “a viable path,” he advised. Herwick acknowledges ethanol’s somewhat lower energy content (i.e., per-gallon mileage) relative to gasoline, but argued turbocharging engines should improve ethanol mileage. Direct injection, which sprays fuel directly

into the combustion chamber, carries a cooling effect that would enable carmakers to further narrow the mileage gap, he said. That such technologies can be incorporated into existing models weighs in ethanol’s favor. Incentives under new fuel economy requirements “arbitrarily favor” electric vehicles and threaten to undermine biofuels mandates under the federal Renewable Fuels Standard, but pricey electric cars have been “very slow to catch on” with consumers, Herwick reported. The Ford Focus, which normally sells for around $22,000, will be offered in an electric version for about $39,000. “The battery pack alone is costing Ford between $12,000 and $15,000,” Herwick related. “I think the government’s in a much better position to write a general performance standard that allows automakers to select the best technology, rather than a mandate for any given technology.”


FarmWeek Page 12 Monday, July 2, 2012

FARm BuREAu In AcTIOn

Peoria County Farm Bureau celebrates 100 years BY PATRICK KIRCHHOFER

An estimated 2,500 people attended the Peoria County Farm Bureau’s recent 100th anniversary celebration at the Shoppes at Grand Prairie in Peoria. The day began with a police-escorted tractor drive as 40 participants traveled 10 miles round trip from Grand Prairie to the small community of Alta, where the Farm Bureau organization in Peoria County was first visualized in September 1912. That year, people were gathered for the Peoria County Pomona Grange’s Labor Day picnic in Alta and discussion on starting a “farm bureau” was held during the program. At the 100th celebration, members of the Brimfield Fire Department conducted a ceremonial flag-raising as a three-sectioned ladder was extended straight up and supported by ropes held by the volunteer firefighters. As a volunteer climbed the ladder and hoisted the American Flag, Farm Bureau Board Director Bob Janssen sang The Star Spangled Banner.

Members of the Brimfield Fire Department scale an extension ladder to raise a ceremonial flag during the recent 100th anniversary celebration of the Peoria County Farm Bureau. An estimated 2,500 people attended the event. (Photo courtesy of Peoria County Farm Bureau)

A free lunch of pork burgers prepared by Rabers Meats, a bag of potato chips made locally by Kitchen Cooked, bottled water, and a cup of Prairie Farms Dairy vanilla ice cream, was served to all who attended. Many activities, especially for the children, were set up in the Grand Prairie parking lot. The Young Leaders operated a pedal tractor course lined with straw bales. The seven John Deere tractors and one Case IH were busy most of the day.

A garden tractor course nearby was operated by Weiland’s Lawnmower Hospital. Participants were timed while maneuvering around a tight course of bowling pins. Volunteers brought a dairy cow and calf, three piglets, two lambs, a horse, a pony, and two chickens to the event. Many of the children had never seen some of the animals before. Local FFA chapters and 4-H clubs also staged events for children. The Grand Prairie property

was an attractive location for the celebration because a large store recently had vacated approximately 20,000 square feet. The building was used to house a toy show featuring 21 exhibitors displaying their new and vintage farm toys. Exhibits from farmerfriendly businesses and local businesses in the county that offer member discounts on their products and services also were set up in the building. Also featured was an Ag in the Classroom interactive exhibit in which volunteers assisted participants in making butter by shaking a glass

jar of cream. Children also could create Beanie Babies, a necklace containing a soybean seed that sprouts. Coloring books, crayons, and Ag Mags were given away. The celebration was a countywide effort and involved many Farm Bureau member volunteers. A 100th Anniversary Committee was formed in December of 2011 and met several times to plan the event, which was chaired by Board Director Dan Heinz. Patrick Kirchhofer is manager of Peoria County Farm Bureau. He can be reached at 309-686-7070.

Mercer, Rock Island Farm Bureaus sponsor local government seminar BY KENDRA BOLEN

More than 50 township officials and others attended a recent local government seminar that focused on township government. The seminar was hosted by the Mercer and Rock Island County Farm Bureaus. Kevin Rund, director of local government for Illinois Farm Bureau; Brenda Matherly, IFB assistant director of local government; and Jerry Crabtree, associate director of the Township Officials of Illinois were the evening’s speakers. Rund covered the many units of local government in Illinois and how they’re structured. Matherly spoke on local government financing, discussing the budgeting and spending process used by local government. She also provided a look at trends in revenue and expenditures and the demands on tax dollars. Rund and Matherly looked at a range of trends impacting Mercer and Rock Island counties. They also discussed the impact that the trends have on local government. Rund also covered road districts, giving an overview of local road jurisdictions as a separate unit of government. Crabtree gave a presentation on a township official’s authorities and responsibilities. He gave an overview of the legal and practical relationship between the township and the road district and their respective officials. Jeff Kirwan, president of the Mercer County Farm Bureau, and Dennis Van Daele, Rock Island County Farm Bureau board member, provided updates on their respective Farm Bureaus. Kendra Bolen is manager of Mercer County Farm Bureau. She can be reached at 309-582-5116.

BATTLEFIELD HISTORY

A ranger at Gettysburg National Military Park in Gettysburg, Pa., points out a historical landmark to some of the 70 Illinois FFA and 4H members on the Illinois Farm Bureau and Affiliates Youth to Washington Tour. Last week the teens and their adult leaders also toured many historic sites and museums in Washington, D.C. More photos and reports are available online at {www.facebook.com/#!/ilfbyea}. (Photo by Mariah Dale-Anderson, IFB special services manager)


Page 13 Monday, July 2, 2012 FarmWeek

from the counties

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DAMS — An informational meeting about the Enbridge pipeline will be at 1 p.m. Tuesday, July 10, at the Farm Bureau office. Call the Farm Bureau office at 222-7305 for reservations or more information. HAMPAIGN — Celebrate Champaign County Farm Bureau’s 100th anniversary by golfing Monday, July 30, at Stone Creek Golf Club, Urbana. Shotgun start at 8 a.m. Cost for a team of four golfers is $100 each and includes range balls, golf, cart, coffee and donuts, lunch, and prizes. Call the Farm Bureau office at 217352-5235 for reservations or more information. OLES — Farm Bureau will sponsor a Viewpoint meeting at 9 a.m. Friday, July 13, at Daily Feed and Seed, 8449 E CR 450 N, Mattoon. Nancy Erickson, Illinois Farm Bureau director of natural and environmental resources, will discuss fuel storage tank regulations and conservation issues. Call the Farm Bureau office at 3453276 for reservations or more information. FFINGHAM — Farm Bureau will sponsor a policy development meeting at 7 a.m. Tuesday, July 10, at the Farm Bureau office. Liz Hobart, Illinois Farm Bureau associate director of national legislation and policy development, will be the speaker. Breakfast will be served. Call the Farm Bureau office at 217-342-2103 by Tuesday for reservations or more information. • Farm Bureau’s annual member appreciation picnic will be at 6 p.m. Sunday, July

15, at Evergreen Hollow Park, Effingham. Pork burgers, hot dogs, hamburgers, chips, baked beans, and cole slaw will be served. Country Financial agents will provide the ice cream and South Central FS will provide the drinks. Matt Poss will provide the entertainment. Members may swim at Kluthe Pool from 7 to 8:30 p.m. Call the Farm Bureau office at 217-342-2103 by Friday for reservations or more information. A drawing will be held for those who make a reservation and attend. RUNDY — Farm Bureau will sponsor a Heartland Blood Center drive from 3 to 7 p.m. Monday, July 9, at the Farm Bureau office. Donors are eligible to donate every eight weeks and must present a picture identification. Call the Farm Bureau office at 815-942-6400 for an appointment or more information. ANCOCK — Farm Bureau will sponsor a defensive driving course for those 55 and older from 10 a.m. to 3 p.m. Tuesday and Wednesday, July 17-18, at the Farm Bureau office. Lunch will be served. Doug Sommer will conduct the course. Those who complete the course will receive a certificate for a discount on their insurance. Cost is $15. Call the Farm Bureau office at 217-357-3141 for reservations or more information. • The annual Conservation Tillage Field Day will be from 4 to 8 p.m. Tuesday, July 17, at the Luella Spees Farm, south of Carthage off I-336. Rain date will be Thursday, July 19.

Auction Calendar

Auction. TREMONT, IL. Cal Kaufman and Brent Schmidgall, Auctioneers. tremontconsignmentauction@yahoo.com Sat., July 21. 9:30 a.m. Farm machinery and miscellaneous. Marie Van Wassenhove, KEWANEE, IL. Rediger Auction Service. ww.rickrediger.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. 12 p.m. Fulton Co. Land Auction. Ione Hamman Est., LONDON MILLS, IL. Lowderman Auction & Real Estate. www.lowderman.com Sat., Aug. 18. 9 a.m. Large MultiFarmer Absolute Auction. OKAWVILLE, IL. Riechmann Auction. www.riechmannauction.com, www.topauctions247.com or www.biddersandbuyers.com

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Sat., July 7. 8:30 a.m. Hazelhurst Annual Summer Consignment Auction. MILLEDGEVILLE, IL. www.topauctions247.com/paspolo and auctionzip.com Sat., July 7. 10 a.m. 3 Bdrm./2 Bath Home w/Pole Barn. CREAL SPRINGS, IL. Joe Ollis Auction Service. Sat., July 7. 10 a.m. Farm machinery. Eddie Garner, Sr. Est., ASHLAND, IL. Roger Strang, Darrell Moore and Dick Samples, Auctioneers. www.auctionzip.com ID#20245 Sat., July 7. 1 p.m. Farm Toy Auction. Irvin Dean Franklin Estate, PITTSFIELD, IL. Curless Auction. www.curlessauction.com Sat., July 14. 10 a.m. Randolph, Jackson and Perry Co. Land Auctions. SPARTA, IL. BuyAFarm.com Mon., July 16. 7 p.m. Shelby & Fayette Co.’s Land Auction. W.H. “Willie” Jones Trust, HERRICK, IL. Wm. Beck and Cory Craig, Auctioneers. Fri., July 20. 10 a.m. Iroquois Co. Land Auction. WATSEKA, IL. murraywiseassociates.com Fri., July 20. 9 a.m. Farm & Construction Eq. Consignment

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ASALLE — The annual Marketing Committee trip to Springfield will be Tuesday, July 24. The group will visit the home and tomb of President Lincoln, the Abraham Lincoln Museum, and conclude with a Corn Belter’s baseball game and barbecue in Normal. Cost is $85 for members and $95 for non-members. Call the Farm Bureau office at 815-433-0371 for reservations or more information. EE — Farm Bureau and the Lee County Fair Association will sponsor a blood drive from noon to 6 p.m. Thursday, July 26, at the Lee County Fairgrounds. Call the Farm Bureau office at 815857-3531 or e-mail leecfb@comcast.net for an appointment or more information. Walk-ins are welcome. • Joy Holden, Herbalife distributor, is participating in the Lee County Farm Bureau local discount program. Farm Bureau members will

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receive 20 percent off orders placed on her website {www.goherbalife.com/joyholden}. Call Holden at 815970-2398 or the Farm Bureau office at 815-857-3531 for more information. • The Young Leader Committee will sponsor a Harvest for All food drive through Aug. 31. Donations of nonperishable food items or cash may be taken to the Farm Bureau office. All items will be donated to the Lee County food pantries. ACON — Farm Bureau will sponsor a landowner rights meeting at 6 p.m. Monday, July 9, at Mt. Zion Lions Center, Mt. Zion. Illinois Farm Bureau legal counsel and governmental affairs and commodities staff will present information on the proposed Illinois Rivers project, which affects the southern part of Macon County. Call the Farm Bureau office at 877-2436 for more information.

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ONROE — Scholarships are available to college students. Call the Farm Bureau office at 9396197 or e-mail mcfarm@htc.net to receive a scholarship application. Deadline to return applications is July 15. OODFORD — A landowner meeting for those involved in the Enbridge Flanagan South Pipeline project will be at 7 p.m. Monday, July 16, at the Community United Church, 300 North Main St., Morton. Illinois Farm Bureau staff will present information about the project. Call the Farm Bureau office at 4672347 or e-mail wcfb@mtco.com for more information.

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


FarmWeek Page 14 Monday, July 2, 2012

proFitability USDA

Farm Service Agency SWAMPBUSTER REGULATIONS: To maintain compliance, a farmer cannot plant an agricultural commodity on a converted wetland or convert a wetland to make it possible to produce an agricultural commodity. Farmers are required to file a “AD-1026” form and agree not to convert wetlands. Before a farmer plants or converts a determined or an undetermined wetland for possible crop production, he or she is required to notify the Farm Service Agency (FSA). FSA and the Natural Resources Conservation Service (NRCS) will determine whether the area is a wetland. Farmers who convert wetlands to possible crop production without proper conservation measures could be ineligible for all USDA benefits on any land they own or operate. Contact your local FSA office with any questions. SODBUSTER REGULATIONS: The term “sodbusting” means converting land from native vegetation, such as rangeland or woodland, to crop production after Dec. 23, 1985. In addition, highly erodible land conservation (HELC) compliance rules require all acreage, regardless of when it was brought into production, to be farmed using an approved conservation plan. HELC compliance violations include conducting unauthorized tillage practices or grazing on highly erodible land. Farmers should be aware that if they use highly erodible land for crop production or grazing without proper conservation measures, they risk losing eligibility to participate in all FSA and most NRCS programs. Before clearing, plowing, or otherwise preparing areas not presently under crop production for planting, farmers are required to file a “AD-1026” form that indicates the area to be brought into production. If NRCS indicates on a “CPA-026” form that the area will be highly erodible land, the farmer will be required to develop and implement a conservation plan on the affected acreage, before bringing land into production. Contact your local FSA office with any questions.

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

Range Per Head $31.00-$45.00 $62.97

Weighted Ave. Price $37.15 $62.97

This Week Last Week 73,650 127,032 *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 $95.08 $100.47 $70.36 $74.35

Change -5.39 -3.99

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week n/a 115.81 n/a n/a 115.71 n/a

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week 147.66 152.89 -5.23

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-175 lbs. for 128-160 $/cwt. (wtd. ave. 142.37); load wooled 200 lbs. for $100/cwt.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 06-21-12 9.2 19.5 27.0 06-14-12 11.2 21.0 27.6 Last year 8.9 23.8 30.7 Season total 1203.1 62.8 1295.8 Previous season total 1419.2 78.0 1449.0 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Marketing plan more important than ever BY CORY WINSTEAD

The day I wrote this article, the market took a strong move higher. Of course, this is a good thing for farmers. But what if it had been a strong move lower? Many factors impact today’s market — the dollar, oil, fund money, Europe, South AmeriCory Winstead ca, exports, China, weather, yield projections, technical indicators, and traders — just to name a few. All of these factors have one important thing in common: They are 100 percent out of our control! This current market we are in is a weather market, and we are all looking at weather maps and models trying to decipher what the next 10 days will look like. Will it be hot and dry? Will it be cool and dry? Will

it be cool and wet? Do the models even read the same? What about El Nino and La Nina? Bottom line is we are not sure how this growing season will turn out. With that said, farmers need to prepare a marketing plan to protect against the worst-case scenario. This is the one thing a farmer can have complete control over. Consider the following as you put together your grain marketing plan: Know your production cost. Create a marketing plan identifying profitable levels to make sales. This provides a starting point to selling some of your crop above break-even levels. Diversify how you sell your grain. Sell small incremental percentages you are comfortable with based on your Actual Production History. Do not be afraid to make forward sales at good profitable levels. Sell grain on your own as well as using professional ana-

lysts to market some of your grain. Familiarize yourself with export and domestic delivery markets if you use onfarm storage. Sell up to your guaranteed level of crop coverage if you can make sales at a profit. Remain committed to your plan, but understand there may need to be some adjustments along the way due to unforeseen circumstances. Marketing grain in today’s extremely sensitive and volatile market can be challenging for anyone, regardless of experience and expertise. The five points referenced above are just a starting point. There are a number of tools out there, including working with an AgriVisor representative, that will help you build a plan and reduce your risk to market volatility. Cory Winstead is account manager for AgriVisor. His e-mail address is cwinstead@agrivisor.com.

Swine herd grows; future expansion could be limited BY DANIEL GRANT FarmWeek

Hog producers who did not go forward with major expansion plans in the past quarter appear to have made the right call. A rapid run-up in feed prices due to the ongoing drought and its effect on potential crop yields is expected to put U.S. pork producers in the red for the final two quarters of this year. Corn prices in recent weeks jumped by more than $1 per bushel while prices for soybean meal skyrocketed as much as $60 per ton. “That’s a game-changer in the economics of the hog business,” Chris Hurt, ag economist at Purdue University, said last week during a teleconference hosted by the National Pork Board after the release of USDA’s quarterly hogs and pigs report. “Producers need to be cautious with expansion plans.” USDA on Friday estimated the breeding herd as of June 1 totaled 5.86 million head. Producers for the current quarter (June through August) intend to have 2.9 million sows farrow, which would be down 1 percent from the same period a year ago. “We can take a sigh of relief (the breeding herd estimate) is not higher,” said Joe Kerns, economist with the International Agribusiness Group in Ames, Iowa. “The trade was fearful of larger expansion. We didn’t see that, which is a very healthy sign for the industry.” Hurt predicted hogs prices would average in the high $80 range in the third quarter

before slipping to the high $70s in the fourth quarter and the first quarter of 2013. Kerns predicted a similar decline in hog prices which,

FarmWeekNow.com Full details of USDA’s quarterly hogs and pigs report are available at FarmWeekNow.com.

combined with higher feed prices, could put pork producers in the red after two reasonable years of profit in 2010/11. “We were looking at slight profits (the last two quarters of this year),” Kerns said. “Now (due to the recent run-up in feed prices), I’ve got us at losses of $5 to $10 per head into 2013.” Overall, all hogs and pigs in the U.S. as of June 1 totaled 65.82 million head, up 0.8 of a percent from a year ago. The market hog inventory, 60 million head, was up 1 percent from last year.

The inventory of hogs and pigs in Illinois as of June 1 showed much more growth as it was up 7 percent at a total of 4.7 million head. On the demand side, exports are expected to remain strong but could backslide a bit in the second half of this year. “The peso has lost quite a bit of value (which could hurt pork demand in Mexico),” said Steve Meyer, president of Paragon Economics. “A stronger dollar is a factor here (in the U.S.). It will work against us some.” Producers remained efficient last quarter as the average pigs-saved-per-litter was a record 10.09. But Hurt stressed that producers should be cautious about expansion of their herds moving forward. “We may even have to cut the herd some moving forward,” Hurt added. “It will be determined a lot by the weather the next 60 days.”

Monmouth Research Center plans 31st annual field day July 18 The University of Illinois’ Northwest Research Center at Monmouth will have its 31st annual field day July 18. The first tour will leave at 8 a.m. with the last one starting at 9 a.m. Each tour will take about two hours. Tour topics will include: high soybean yields, identifying and managing foliar diseases of corn, agricultural tiling for profit and protection, and residue removal of new hybrids and varieties. The center is located about 1 mile north and 4 miles west of the intersection of U.S. Routes 34 and 67 on the north side of Monmouth. For more information, contact the center’s Marty Johnson, at 321 210th Ave., Monmouth, Ill., 61462, 309-734-7459, mljhnsn2@illinois.edu, or Angie Peltier, Warren County Extension, at 1000 N. Main St, Monmouth, Ill., 61462, 309-734-5161, apeltier@illinois.edu.


Page 15 Monday, July 2, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Planted acreage set

As expected, the total acreage planted this year rose 3.4 million from the March USDA forecast. But given the high insurance guarantees, the good spring weather, and the rapid planting pace, that shouldn’t have been a surprise. The focus now will shift to the plight of the acres planted. How many of those ultimately will be abandoned because of the stress crops are enduring early in the growing season? There’s been talk over the last couple of weeks that producers abandoned the idea of planting all of the double-crop acres originally intended. But, in looking at historical droughts, only 1974 had a big shift in planted acreage, a 900,000-acre decline. That crop was the famous “triple whammy” year — planted late, hit by a drought, and finished with an early frost. Even in 1988, actual soybean plantings were nearly 300,000 acres higher at the end than they were on the June estimate. Looking ahead, we think anticipating possible changes in the harvested acreage number for corn and soybeans may

be more important than focusing on the double-crop soybean plantings. On average, over the last six significant droughts, harvested soybean acreage did not change significantly from June to the final report. By the fall crop reports, harvested acres declined 290,000 before rebounding into the final number. The year with the biggest change, 1980, dropped 1.8 million by fall, only to end with an 800,000 reduction. Other years only had minimal changes, with 2003 having the biggest shift of those, and its harvest acreage only fell 300,000 from June. Changes in harvested acreage for corn are a little more dynamic, declining 1.6 million acres on average from the June estimate to the August estimate. They slip slightly more into the fall reports, but on average only end up 1.3 million below the initial forecast in June. The most dramatic was 1974 with the harvested acreage estimate falling nearly 4 million by fall, but acreage ended only 2 million below the June number. Expect to hear talk about abnormally large abandonment in corn in particular over the next few weeks. But be aware that the talk likely will exceed reality.

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ü2011 crop: Use rallies on December futures above $6.50 to wrap up sales. ü2012 crop: December futures are approaching the $6.73 contract high. Prices could peak near the July 4 holiday, so we’d use strength to make catch-up sales. We prefer hedge-to-arrive contracts for making sales. vFundamentals: USDA pegged corn acreage at 95.96 million, 500,000 more than trade expectations and forecast in March. Stocks on June 1, 3.15 billion bushels, were just below trade expectations. But the primary focus in the market is the dry conditions throughout much of the Corn Belt and parts of the South. The seven to 10 day models are calling for scattered showers at best. But as you have come to know, there’s always risk of an unexpected shift. Weather has cut into production potential but maybe not yet enough to offset this year’s additional acreage. ûFail-safe: If December futures close below $6.10, make sure sales are at recommended levels.

Soybean Strategy

ü2011 crop: July futures’ are approaching their $15.12 contract high. The pattern still does not favor seeing a new high, but it cannot be ruled out, either. We’d still use strength to wrap up old-crop sales. ü2012 crop: The November futures rally stalled above the $14 contract high, but it did not fall, either. Still, we’d target a move above $14.50, to make catch-up sales. vFundamentals: The new USDA numbers didn’t shed any significant light on the fundamental structure. But both the June 1 stocks and planting number were a little higher than anticipated. Weather is the most important variable at the moment with the potential to impact both yields and acreage. There’s been talk for a couple of weeks that double-crop plantings have diminished. But for yields, there’s still time for the crop to recover in many areas,

resulting in a reasonably good yield. ûFail-safe: If November futures close below $13.90, make sure sales are at recommended levels.

Wheat Strategy

ü2012 crop: The uptrend in wheat remains intact, with prices being supported by strength in corn. Make catchup sales with Chicago September trading above $7.29. Producers selling wheat off the combine should use this rally to price unsold bushels. The futures carry makes it attractive to store wheat during the summer, but only if it’s priced or hedged. We may recom-

mend an additional 10 percent sale at anytime, so stay close to the Hotline. vFundamentals: Upward momentum in wheat prices is linked primarily to the weather surge in corn prices. The USDA report pegged all wheat plantings slightly below expectations at 56 million, with the majority of the reduction coming in spring wheat states. June 1 all wheat stocks did come in above expectations at 743 million bushels. That only added another indication that supplies of wheat are ample domestically as well as internationally.


FarmWeek Page 16 Monday, July 2, 2012

pERspEcTIvEs

U.S. needs to make trade not war

Nearly 200 years ago, America’s worst trade war erupted into America’s worst shooting war. On June 18, 1812, President James Madison signed a declaration of war against Great Britain. The War of 1812 was on. Despite its name, the conflict would rage for almost three years. These days, Americans don’t think much about what happened or why. Here’s the first sentence of historian Donald R. Hickey’s REG CLAUSE definiguest columnist tive book: “The War of 1812 is probably our most obscure war.” It’s obscure partly because it went so poorly. Who wants to remember martial humiliation? The British burned our national capital, in an event whose infamy ranks alongside the sneak attack at Pearl Harbor and the terrorist strike on the World Trade Center. The United States even tried to invade Canada during the War of 1812 but failed. We’re not supposed to lose anything to Canada, except maybe hockey games! Then there’s James Lawrence, captain of the USS Chesapeake. In 1813, he sailed out of Boston, engaged a Royal Navy frigate, and uttered his famous rallying cry: “Don’t give up the ship!” Now for the rest of the story: Moments after speaking these words, Lawrence died and his sailors did indeed

give up the ship. So it was that kind of a war. Its beginnings were just as inauspicious. The War of 1812 started out as a trade war with the United States trying to use commerce as a weapon and forcing Great Britain and France to respect American neutrality. In 1806, we banned a list of British manufactured goods from our markets. The next year, we passed the draconian Embargo Act, which prohibited American ships from traveling to foreign ports. These moves were supposed to hurt the economies of Great Britain and France. Yet they devastated our own, while causing only minor inconveniences to our rivals.

disaster. In 1811, the government banned all imports from Great Britain and France. Supporters of these measures thought that a trade war presented a good alternative to a shooting war. Yet their aggressive protectionism worsened relations between the United States and Europe. Rather than preventing a war, trade restrictions helped launch one. It just goes to show that nobody wins a trade war. We should remember this in 2012, as we approach Election Day. In the months ahead, expect to hear a lot of tough talk from both Democrats and Republicans, especially on trade with

The Embargo Act lasted about 15 months, but the reckless experiment with trade war continued: In 1809, Congress passed the Non-Intercourse Act, which allowed American ships to travel abroad, except to Great Britain, France, or their colonies. It was another

China. There will be calls for limiting imports, demands for federal contractors to “buy American,” and so on. It’s hard to believe these policies would spark a hot war with China, but the world is full of surprises. The first foreign-policy crisis of George W.

Bush’s presidency involved a mid-air collision between a naval intelligence aircraft and a Chinese jet, forcing the American crew to make an emergency landing on Hainan Island, where they were detained. A year from now, a new president could face a similar confrontation, perhaps involving a political or military crisis over oil-drilling rights in the South China Sea. It’s impossible to plan for every possibility — but it’s also essential to avoid creating the conditions that can lead to a fiasco. This is what American leaders failed to do in the run up to the War of 1812. In fairness, the United States had a few proud moments in the struggle. Oliver Hazard Perry won the Battle of Lake Erie. Andrew Jackson prevailed at New Orleans. And after watching the botched British bombardment of Baltimore, Francis Scott Key penned our national anthem, “The Star-Spangled Banner.” Yet if we’re going to learn anything from history — isn’t that the point of studying it — then we should recognize what may be the most important lesson for the War of 1812’s bicentennial: We should make trade, not war. Reg Clause owns a fourth-generation family farm near Jefferson, Iowa. He volunteers as a board member for Truth About Trade and Technology. The group’s website is {www.truthabouttrade.org}.

Federal crop insurance step in right direction Recently, the Senate passed a farm bill. The House still must pass one, and the two will have to be reconciled. However, considering the political gridlock that has tied our Congress in JOHN knots, the SenBLOCK ate action is significant. It is a game changer in some respects. Here is why. Let’s look at the history of farm programs. Go back as far as the ‘30s when most of the programs were designed to cut production to support prices. Buy land out of production. The objective was stable prices

at an acceptable level. We started moving away from land set-asides in the ‘80s and ‘90s. Still wanting to provide some farmer support, direct payments became very popular. With the new farm bill, direct payments are gone. No land set-asides, either. We’re going to let the market work without heavy-handed government interference. Federal crop insurance will become the centerpiece of the farm safety net. We’ve had federal crop insurance for many years, but it was always an afterthought. In the new bill, crop insurance has to be attractive enough for farmers to be willing to pay for the protection. It’s not free. To keep the cost from being excessive and

encourage the farmer to buy it, the government subsidizes the cost. The debate goes on over how much the government subsidy should be. I don’t know the answer. This is all voluntary, and we would hope farmers would buy the crop insurance for their own protection against drought, floods, and all kinds of crop failure. In many cases, their bankers will insist on insurance. Even the public wants farmers to have some protection because we need a secure and abundant food supply. Crop insurance is not a perfect solution. We don’t want it to be so lucrative that farmers plant crops in high-risk areas just to collect insurance. It is

designed to deal with this question. The maximum coverage is 80 percent of loss. In my judgment, farm programs have been too complicated with too much government control. Crop insurance looks like a step in the right direction. It puts more responsibility on the farmer to decide how much insurance to buy and which crops to plant. The Senate did its job and still saved some $23 billion. Let’s see what the House can do. John Block, former U.S. agriculture secretary, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His e-mail address is jblock@ofwlaw.com.

LETTER TO THE EDITOR CO2 not causing rise in temperature

Editor: Your recent climate articles (FarmWeek, June 11) discuss proposed Environmental Protection Agency actions on carbon dioxide (CO2) and related skepticism (you quote Joe Bastardi, who denies a CO2-temperature connection). I concur with Mr. Bastardi. I just completed analyses of U.S. Historical Climatology Network, version 2 (USHCNv2) atmospheric temperatures for the period 1895-2011 and CO2 records for 17442011. While atmospheric CO2 continues to increase unabated, temperatures have trended downward since 2004. These two observations invalidate the hypothesis that CO2 is causing most or all of temperature increase since 1975. The USHCNv2 annual average temperatures had oneyear peaks of 54.91 degrees Fahrenheit (F) in 1998 and 54.57 in 2006. While average annual temperature varies up and down from year to year, and even in five-year (El Nino/La Nina) and 11-year (sunspot) cycles, a standard curve-fit identifies the trend peak in 2004. The ocean current phenomenon mentioned in your article is the PDO (Pacific Decadal Oscillation) with a nominal, but varying, period of 30 years. PDO changes correlate with temperature increases in the periods 19722004 and 1907-1944, and with decreases before 1907, in 1944-1972, and since 2004. There is also a 1,500-year cycle. It produced temperatures 2-3 degrees Centigrade (C) (3.5-5.5 degrees F) warmer than current in 1000. At that time, Vikings colonized a north Atlantic island and grew short-season grains there for more than a century. They named it Greenland. The 1,500-year cycle produced temperatures much colder than current in the period 1700-1800. It is projected to produce temperatures 2-3 degrees C warmer than today in about 2500. CO2 is a weak GHG (greenhouse gas). It only appears powerful through a hypothesis that multiplies its GHG effect by 8 or more. The current increasing CO2 and decreasing temperature trend refute this hypothesis. Other forms of climate data, such as the long-term trend in relative humidity, also refute it. JERRY LUNDRY, Bellevue, Wash.


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