FarmWeek July 9 2012

THe IllInoIs Department of Agriculture had its share of cuts in the budget G o v. Pa t Q u i n n s i g n e d l a s t week. .....................................2

Fa r m e r s W I T H c r o p losses from the drought are urged to contact their crop insurance agent and the Farm Service Agency as soon as possible. ........................4

Monday, July 9, 2012

T H e I s l a n d na T I o n offers much potential once numerous hurdles are overcome, Illinois Farm Bureau market study tour participants discovered. ..............8,9

Two sections Volume 40, No. 28

Is crop season shaping up to be another 1988?

BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

If the weather pattern and crop conditions so far this season seem familiar, it’s probably because a similar situation unfolded in 1988.

And most farmers remember how that year turned out.

Or maybe they tried to forget.

Illinois farmers in 1988 harvested a corn crop that averaged just 72 bushels per acre.

Yield potential in Illinois and other parts of the Midwest continued to plummet last week as high temperatures broke 100 degrees at many Illinois locations and topped out at 109 in Kaskaskia, 108 in Fairfield and Nashville, and 107 at at least a half-dozen locations south of Interstate 70, reported Jim Angel, state climatologist with the Illinois State Water Survey.

“1988 was the last time we had to deal with the type of widespread heat we’re seeing now,” Angel told FarmWeek.

“I’d say all the crops (in Illinois) are in some state of stress.”

The good news is the portion of crops rated good to excellent in Illinois last week was higher than at the same time in 1988. The bad news is

the portion of crops rated poor or very poor statewide last week also was higher than at the same time in 1988.

Last week, the corn crop was rated 26 percent good to excellent, 41 percent fair, and 33 percent poor or very poor.

At a comparable period in 1988, the crop was rated 18 percent good to excellent, 60 percent fair, and 22 percent poor or very poor.

Soybeans in the state last week were rated 28 percent good to excellent, 41 percent fair, and 31 percent poor or very poor. Soybeans at the same time in 1988 were rated 15 percent good to excellent, 69 percent fair, and 16 percent poor or very poor.

A big difference this year, though, is much more of the corn crop is past the point of no return as 46 percent of the

crop had silked last week compared to just 8 percent at the same time in 1988.

“The plants in some fields are dead,” said Emerson Nafziger, University of Illinois crop sciences professor.

“If they are alive, but past the pollination stage with very short plants and no kernels, or they have lost most or all of their green color, there’s no chance they can come back.”

And to add insult to injury, a pest issue is developing at a level last seen in 1988.

“The hot and dry conditions likely will exacerbate infestations of two-spotted spider mites in soybeans in coming weeks,” said Mike Gray, U of I Extension entomologist.

He noted 1988 was the See 1988, page 2

House farm bill draft proposes deeper cuts

BY MARTIN ROSS FarmWeek

The House Ag Committee released a draft farm bill blueprint last week that seeks $12 billion in long-term ag cuts more than Senate-proposed savings. The proposal does, however, bolster crop insurance and cross-regional program supports.

American Farm Bureau Federation (AFBF) and the major commodity groups were studying the 557-page proposal, which tentatively is set for committee debate and potential approval Wednesday.

The House draft calls for more than $35 billion in mandatory funding cuts over the next 10 years and proposes repealing or consolidating more than 100 programs.

It charts about $14 billion in commodity-related cuts, $6 billion in conservation reductions, and, perhaps most controversially, $16 billion from the Supplemental Nutrition Assistance Program (SNAP), or “food stamps.”

AFBF planned Friday to send a letter to the House Ag Committee “in support of many of the concepts” of the plan, Illinois Farm Bureau President Philip Nelson reported.

“We recognize the differences between the Senate and House versions and are going to work to improve the overall bill in the best interest of our members,” Nelson said.

National Corn Growers Association

(NCGA) Corn Board President Garry Niemeyer reported NCGA was assessing similarities and differences between the House’s revenue safety net plan and NCGA’s “grower-developed policy.”

While he could not yet discuss details of the House plan, Niemeyer stressed NCGA’s continued push for congressional farm bill passage yet this year.

“It was great that the Senate was able to get things together and get a bill passed,” IFB Director David Serven told FarmWeek Friday. “This House draft is another step in the right direction, in that (lawmakers) are moving forward.

“Hopefully, the committee will come out with something and, in the end, we’ll be able to get the House and the Senate together and get something done this year.

If we wait until next year, the cuts are going to be even deeper.”

Niemeyer noted the House plan’s inclusion of regulatory relief language aimed at heading off recently enacted U.S. Environmental Protection Agency National Pollutant Discharge Elimination System pesticide permits.

The Senate to date has failed to act on the standalone version of the measure approved last year in the House, amid resistance from Senate Environment and Public Works Chairman Barbara Boxer (D-Calif.) in particular.

The House draft repeals farm direct and

FarmWeek on the web: FarmWeekNow.com

countercyclical payments and the Average Crop Revenue Election and Supplemental Revenue standing disaster programs. Instead, it envisions a two-tiered central revenue protection program that offers the option of Price Loss Coverage which addresses deep, multiple-year price declines; or Revenue Loss Coverage, a “shallow loss program that resembles the Senate-proposed new Agriculture Risk Coverage program.

Serven was pleased by what he viewed as strong House-Senate support for a viable crop insurance program. “That is definitely a priority for us in Illinois.”

At the same time, the St. Augustine producer noted a slight boost in proposed commodity production loss/“target prices,” in his view, a necessary move to “appease” southern growers who argue Senate revenue proposals disproportionately favor the Midwest.

He suggested current drought conditions would help “push (Congress) along.” Potentially heavy weather-related losses in Southern Illinois and other areas “really show the importance of a good farm bill,” Serven said.

“SNAP funding is probably going to be the most contentious issue between the House and Senate,” he said. “The House is cutting a whole lot more in that area. I think the Senate was talking more about fraud and misuse, while the House is talking more about changing the eligibility rules.”

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

FarmWeek Page 2 Monday, July 9, 2012

Quick takes HIGHWAY BILL — A newly approved, 27month highway bill not only keeps transpor tation projects rolling until September 2014, but also contains key provisions exempting far mers, ranchers, and covered far m vehicles from some federal regulations, according to Andrew Walmsl e y, A m e r i c a n Fa r m B u r e a u Fe d e r a t i o n t r a n s portation specialist.

A House-Senate conference committee approved the compromise package prior to Congress July 4 break. It’s now headed for a presidential signature.

“Those far mers and ranchers who are using a (combination) far m vehicle to haul their calves or their produce to market were exempt from some requirements that were meant for longh a u l t r u cke r s a n d c o m m e r c i a l t r u ck d r ive r s,” Walmsley explained.

FSA, RMA COLLECTING FOOD — T he I l l i n o i s Fa r m S e r v i c e A g e n c y ( F S A ) a n d R i s k Management Agency (RMA) are collecting nonperishable foods through Aug. 31 as part of the national Feds Feed Families Food Drive.

“We plan to step up last year’s efforts in order to meet the increase in our goal,” said Scherrie G i a m a n c o, F S A s t a t e e xe c u t ive d i r e c t o r. “A l l donations received in the state FSA office will benefit the Central Illinois Food Bank,” she said.

County FSA Offices also are encourag ed to participate in the food drive, she said.

The food drive is a national effort that started in 2009 to help food banks and pantries stay stocked during the summer.

R A C T O PA M I N E S TA N D A R D — T h e Codex Alimentarius Commission, a United N a t i o n s b o d y, h a s a p p r ove d a n i n t e r n a t i o n a l standard for the feed ingredient ractopamine, an additive used to promote leanness in pork and beef. The commission’s edict adopts an acceptable daily intake and maximum residue levels for pig and cattle products containing ractopamine.

Ractopamine has been approved by the Food and Dr ug Administration and approved for use in 26 countries. A Codex panel of international scientists, including scientists from the European Union (EU), has confir med the safety of ractopamine three times in the past, most recently in 2010.

Yet, the EU and other countries continue to ban imports of ractopamine–fed pork.

(ISSN0197-6680) Vol. 40 No. 28

July 9, 2012

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government

Governor signs budget; ag shares in the cuts

BY KAY SHIPMAN FarmWeek

The Illinois Departmen t of Agricultur e (IDOA) shared cuts with other state agencies when Gov. Pat Quinn signed the budget for fiscal year 2013, which started July 1.

As passed by the General Assembly, the budget included spending reductions for several IDOA programs and services.

Quinn made one further change to the ag budget by using his reduction veto authority to cut $800,000 that was to be used for the Centralia Animal Disease Laborator y.

The budget reduction will close the Centralia lab and consolidate its services with the Galesburg Animal Disease Laboratory, Kelly Kraft, a spokesman in the governor’s budget office, told FarmWeek. The lab is scheduled to close Aug. 31, she said.

Kraft estimated about 15 people currently are employed at the Centralia lab and about 10 positions are vacant at the Galesburg lab.

“IDOA has compiled a list of vacancies. This (list) will be given to the Centralia lab (employees),” she said.

Quinn proposed closing the Centralia lab in his budget proposal, but lawmakers included money for the lab in the budget.

C-FAR legislation awaiting Quinn’s decision Legislation implementing reorganization of the Illinois Council on Food and Agricultural Research (C-FAR) is awaiting Gov. Pat Quinn’s decision. Quinn has 60 days from June 13 to take action, and C-

FAR has asked him to sign the legislation.

The legislation would put into place reorganization recommendations made by agricultural and commodity groups in 2010. It would allow

‘When Gover nor Quinn signs the bill, C-FAR will be able to solicit public and private monies to fund food and ag research .’

— Chuck Cawley Chairman, C-FAR

1988

Continued from page 1 last year spider mites, which thrive in hot, dry conditions, caused widespread damage to soybeans (an estimated 6

Tuesday: • Ag weather with Harvey Freese of Freese-Notis • Joyce Fikri, nutrition educator with St. Louis Dairy • Rebecca Blue, USDA undersecretary for marketing and regulatory programs Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Dale Durchholz, AgriVisor • Sonny Beck, Beck Seeds Thursday: • Illinois Specialty Growers representative • Keith Brannan, Country Financial’s vice president of financial security planning • Adam Nielsen, IFB director of national legislation and policy development • Ryan Ford, Randolph County Farm Bureau manager • Kirk Liefer, president of Randolph County Farm Bureau Friday: • Sara Wyant, AgriPulse publisher • Alan Jarand, RFD radio director

million acres were treated in Illinois).

The forecast for this week calls for a little relief from the extreme heat but no significant rainfall.

“It’s awfully hard to recover from these types of conditions this time of year,” said Angel, who noted soil moisture in 1988 wasn’t recharged until October and November.

money to be deposited in a special Food and Agricultural Research Fund. Previously, CFAR depended solely on state funding.

“When Governor Quinn signs the bill, C-FAR will be able to solicit public and private monies to fund food and ag research,” said Chuck Cawley, C-FAR chairman and Illinois Farm Bureau director.

C-FAR was organized in 1993 to support food and agricultural research in Illinois. As part of the 2010 reorganization, four industry caucuses were added to the C-FAR governing structure.

The caucuses set research priorities for their respective interests.

One of the few hopes at this point is the development of tropical storms, which could bring moisture from the Gulf of Mexico to the drought-ravaged Midwest.

That’s what happened during the last major drought in Illinois, 2005, and farmers managed to harvest a crop that averaged 143 bushels per acre that year.

Page 3 Monday, July 9, 2012 FarmWeek

Drought

Livestock farmers face some critical feed issues

BY DANIEL GRANT FarmWeek

Livestock producers who are getting desperate for feed sources should use caution before chopping or feeding drought-stressed corn.

Drought-damaged corn can be high in nitrates.

And if the crop is immature, the parched cornstalks still could be too high in moisture for optimal fermentation for silage.

“Immature, droughtstressed corn can appear dry and dead, but may contain over 70 percent moisture in the stalk,” said Mike Hutjens, professor emeritus of animal sciences at the University of Illinois.

Mike Hutjens “For optimal fermentation, ensile when the chopped material ranges from 30 to 38 percent dry matter.”

Meanwhile, nitrate levels of some drought-stressed corn in the state has tested as high as 17,000 parts per million (ppm).

Levels above 4,400 ppm require feeding adjustments while values higher than 17,600 ppm (in the total ration dry matter) should not be fed to dairy cattle, the animal scientist noted.

Fermenting corn as silage can reduce nitrate levels by as much as 40 percent.

“Ensiling corn silage is a recommended practice,” Hutjens said. “But green chopping or pasturing can be risky.”

He recommended producers test the nutrient content and nitrate level of their drought-stressed corn silage after ensiling it.

Drought-stressed corn silage could be a good alter-

native for livestock feed this fall and winter as it may contain as much as 80 percent of the nutrient value of corn silage.

Many livestock producers are scratching for feed sources as the drought and dangerously high temperatures have diminished the yield potential of corn and hay and burned up pastures.

The majority of pastures in Illinois (65 percent) last week was rated poor or very poor.

“The hay situation is one of the biggest issues right now,” said Marc Lamczyk, ag program coordinator at the U of I Extension Center in Benton. “We were short on hay to begin with, and here we are already feeding it.

Actually, some producers started feeding hay last month.”

Darrel Good, U of I economist, believes many livestock producers in droughtstressed areas Darrel Good will have to thin their herds due to the lack of feed or high feed prices.

“What we’re seeing is a pretty rapid sell-off of feeder cattle,” Good said. “That doesn’t bode well for feed demand or the beef supply down the road.

“We’ve seen expansion of hog numbers (the first half of 2012) but that probably will come to an end,” he noted.

Good and Hutjens projected tight corn supplies, higher feed costs, and reduced livestock numbers will lead to higher grocery bills for consumers in coming months.

Blue Sky Winery manager Butch Browning checks the Makanda vineyard’s vignole grapes in Jackson County.

(Photo by Ken Kashian)

Grape growers, crop weathering dryness

BY KAY SHIPMAN FarmWeek

Drought means grape growers will harvest better-quality fruit, but those growing conditions also bring negative consequences, according to growers around Illinois.

“In years like this, the vines put forth all the effort into the fruit. The fruit will be good quality,” said Butch Browning, vineyard manager for Blue Sky Vineyard, Makanda. However, the grapes probably will produce less juice, he said.

Growers around the state are encountering hot, dry conditions on top of an early, warm spring. Some growers are coping with a double whammy of drought following a spring freeze.

In Vermilion County, Joe Taylor estimated the April frost took 40 to 50 percent of his crop when three or four varieties were hard hit. “A drought on top of that. We’re getting a

double whammy,” said Taylor, owner of Sleepy Creek Vineyards, Fairmount, and an Illinois Grape Growers and Vintners Association (IGGVA) director.

While the fruit quality will be good, Taylor anticipated less tonnage when he harvests his 10 acres of grapes.

Fox Valley Winery, Oswego, escaped the frost but is coping with hot, dry weather in Kendall County, said co-owner Mike Faltz. The vineyard has the option of irrigating, he added.

Pest problems this season have produced both positive and negative consequences.

The lack of rain has reduced diseases and weeds. “That’s one thing; we’re saving a small fortune. Fungicide applications this year have been spread further apart,” said Blue Sky’s Browning.

Likewise, Browning has had fewer problems with Japanese beetles compared to a typical year and hasn’t needed herbi-

cides to keep the weeds in check.

Birds, however, soon may be a problem because they will eat grapes as a source of moisture, said Gene Meyer, owner of Bay Creek Vineyard, Pittsfield, and an IGGVA director.

The Pike County grower said he planned to put fine-mesh nets over his grapes to protect them before the robins, woodpeckers, and cedar wax wings damage the crop.

“It’s unbelievable how quickly birds will take a ton of grapes. Some years the birds don’t bother you and some years they eat you up,” Meyer said.

Meyer, who also raises grapes for Rolling Hills Vineyard near Pittsfield, lost some early varieties to the spring freeze, while other varieties “look pretty good,” he said.

“We need a good rain — like everyone else,” Meyer concluded.

IDOA, FSA exploring available drought options State and federal agricultural agencies are coordinating efforts related to the drought.

On a related front, three congressmen who represent Southern and Central Illinois urged USDA and the Farm Service Agency (FSA) to review requests for emergency grazing of Conservation Reserve Program (CRP) acres.

“The Illinois Department of Agriculture (IDOA) is coordinating with the Farm Service Agency to determine which of its emergency programs are applicable due to the drought,” Jeff Squibb, IDOA spokesman told FarmWeek.

Illinois FSA Director Scherrie Giamanco and FSA Deputy Administrator Juan Garcia received letters from U.S. Reps.

John Shimkus, a Collinsville Republican; Tim Johnson, an

Urbana Republican; and Jerry Costello, a Belleville Democrat.

“Due to the extreme conditions faced by producers, we ask that you promptly review any requests for emergency haying and grazing from counties eligible to ask for the emergency designation,” the congressmen wrote to Giamanco.

Likewise, they asked Garcia to promptly review any request from Illinois for emergency grazing before Aug. 2.

To be eligible for early release for emergency grazing, a county FSA committee must first document a 40 percent or greater loss of normal hay acreage and pasture, according to national FSA guidelines.

Otherwise, CRP acres cannot be released for emergency

grazing and haying until after Aug. 1.

This week, state agencies are collecting data and preparing reports for state officials, according to Arlan Juhl, director of the Illinois Department of Natural Resources office of water resources.

Supporting documents are required for the state to request a USDA disaster declaration.

July 15 is the deadline for farmers’ acreage reports to county FSA offices. The acreage reports are to report failed acres and prevented planted acres.

“We are taking every step available in working with state and federal authorities,” said Illinois Farm Bureau President Philip Nelson. — Kay Shipman

FarmWeek Page 4 Monday, July 9, 2012

Drought

Farmers urged to report acreage, file claims ASAP

BY DANIEL GRANT FarmWeek

Farmers who have partial or total crop losses from the ongoing drought last week were urged to contact their crop insurance agent and the Farm Service Agency (FSA) as soon as possible.

FarmWeekNow.com Listen to Steve Worthington’s RFD Radio interview on crop insurance tips at FarmWeekNow.com.

The deadline to file accurate acreage reports to crop insurance agents and FSA is July 15.

An acreage report is the most important document farmers must provide to file a federal crop insurance

claim, according to Steve Worthington, Farmers should “report their susCountry Financial crop claims supervi- pected loss as soon as possible,” he sor. said. “This will “Any loss payallow crop ment will be based adjusters to con‘Any loss payment will tact the producer on the information the producer probe based on the infor- and begin assistvides on this ing them as well mation the producer as form,” Worthingdocumenting provides on this form.’ ton said. the loss.”

If an acreage Once a claim report is not comis filed, a crop — Steve Worthington adjuster will visit pleted correctly and Country Financial on time, it could each droughtcrop claims supervisor delay the processdamaged field to ing or payment of appraise the claims. acreage and It’s important farmers spend time explain the options. with their financial representative Farmers who opt to destroy or crop specialist to accurately com- cornfields should contact their plete the form, Worthington noted. 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.

Crop claims with Country Financial late last week totaled 182, up from about 40 the previous week.

The number of claims is expected to continue to rise as crop conditions deteriorate further.

Last week 33 percent of the state’s corn crop and 31 percent of beans statewide were rated poor or very poor.

The majority of the state as of last week was in a moderate to severe drought, with all or parts of 18 counties in Southern Illinois in an extreme drought, according to the U.S. drought monitor.

Commodity conference speaker: Yield potential drying up Crop prices which shot up in recent weeks due to drought concerns could heat up even more the rest of the summer if the weather situation doesn’t improve.

Darrel Good, University of Illinois Extension economist, believes shrinking crop poten-

tial likely will require the market to ration demand in coming weeks and months.

“There’s a potential for yields to come down quite a bit,” said Good, who will be a featured speaker July 25 at the Illinois Farm Bureau Commodity Conference in Normal.

“If everything turned favorable from here (July 3) forward, we probably could still do a national yield of 150 (bushels per acre),” he continued. “But we don’t have that type of forecast. The question is, how much lower can (yields) go.”

Good noted corn demand already has slowed. Ethanol production has eased — some plants have even shut down — while exports also have been curtailed in recent weeks.

However, soybean demand and exports continue to be robust, despite higher prices.

The situation likely will result in additional market pressure.

“Additional rationing likely will be required,” Good said.

“If we get (a national corn yield of) 140 bushels instead of 150, current prices aren’t high enough to get it (rationing) done. There is further upside (price) potential.”

Gary Schnitkey, U of I Extension farm management specialist, recently projected different crop price scenarios based on yield possibilities.

A mild drought that resulted in yields of 165 bushels per acre for corn and 53 bushels for beans on a typical farm in Northern or Central Illinois could produce prices of $5.80 per bushel for corn and $13.75 for beans.

A moderate drought, with yields of 150 for corn and 48 for beans, could lead to $6.20 corn and $14.50 beans.

And a severe drought, with yields of just 135 for corn and 40 for beans, could push prices to $7.50 for corn and $17-plus for beans.

“Grain farm incomes likely

will be above projections made in the winter of 2012 (when prices were projected to average $5 for corn and $11 for beans) assuming crop prices increase if crop yields are below trend-line yields,” Schnitkey noted.

Farmers, however, will be even more reliant on crop insurance and risk management this year.

“Farms that did not purchase crop insurance could face losses,” Schnitkey said.

“Also, grain farms that hedged a great deal of expected production could have lower incomes than those farmers who have not pre-harvesthedged as much grain.”

There were reports last week of some farmers buying back hedges due to the dramatic drop in yield potential.

Good will provide a further update on the crop yield and price situation July 25 at the IFB Commodity Conference at the Bloomington-Normal Marriott Hotel and Conference Center.

Pre-registration is available online through July 16 at {www.ilfb.org}. Participants also may register for the conference at their local county Farm Bureau office or by calling Nicole Moore at 309-5573343 or by e-mailing her at nmoore@ilfb.org. — Daniel Grant

Chicago Farmers plan picnic, Garfield Farm Museum tour The Chicago Farmers will have a family picnic and tour the Garfield Farm Museum near LaFox starting at 9 a.m. July 21.

Reservations are due July 20.

The event will include tours of the restored prairie and natural areas, an ox-driving demonstration, and a chore time for young visitors.

The cost is $25 for members, $35 for non-members, and $10 for children 12 and younger.

For more information or to register, go online to {www.chicagofarmers.org} or call 312-388-3276.

Page 5 Monday, July 9, 2012 FarmWeek

government

FSA alerts farmers to income verification need

BY MARTIN ROSS FarmWeek

Many Illinois farmers need to bring their federal farm income documentation up to date or risk losing program benefits, a Farm Service Agency (FSA) Illinois program specialist

warns.

Under the 2008 farm bill, farmers were required to submit a CCC-926 adjusted gross income (AGI) certification form to receive program payments. Separate CCC-927 individual or CCC-928 farm entity consent forms authorized disclosure of basic Internal Revenue Service (IRS) tax information to FSA. IRS will review tax data for potential use in identifying farmers who may exceed AGI eligibility thresholds and provide names and taxpayer identification numbers to FSA for further inquiry without supplying tax records or specific income figures. The 927/928 forms acknowledged USDA could use the information to ensure compliance with payment eligibility.

Certification and consent forms now have been consolidated into a single CCC931 form, and AGI information now flows through FSA rather than the IRS. IRS has questioned whether some growers who initially submitted 927-928 forms may now have exceeded AGI thresholds.

Currently at issue are 2009, and 2010 program payment reviews covering 2005-2007 and 2006-2008 income levels. “There’s a one-year lag and a lookback,” FSA Chief Program Specialist Stan Wilson told FarmWeek.

A reported 1,166 Illinois farmers have not provided FSA with currently required verification that they do not exceed AGI thresholds as

indicated by IRS checks.

Roughly 600 of those growers failed to respond to an initial April 4 letter, and they could be declared ineligible for or even have to repay past benefits if they do not provide new verification.

FSA mailed a second notification letter in late June, offering farmers eligibility appeal rights.

“These (600) producers can still regain eligibility –all they have to do is give us the documentation that would show their eligibility,” Wilson stressed. “Get it in

to us, so we don’t have to send you a letter saying you’re ineligible.

“Their options are to give us a CPA or attorney statement that indicates a licensed professional has reviewed their income tax records and confirmed that they are eligible, or to submit their 1040 (income tax), with schedules and attachments, to us, and we’ll do that review.”

Wilson noted many farms file joint tax returns. In some cases, disallowance of one recipient spouse’s reported wages may bring

the other or both spouses back into eligibility. In addition, a major income “spike” can affect eligibility: 2005-2008 Illinois land sales generated significant revenues, and even with spousal division of that revenue, sales proceeds can compromise a year’s eligibility, Wilson said.

“That spike doesn’t have to involve farmland,” he said. “It could be the sale of a residence or two residences; it could be exercising stock options or being bought out of a business.

Anything that causes

income subject to capital gains to spike could cause them to be ineligible.”

Further, an estimated 20,000 Illinois farmers that received 2009, 2010, and/or 2011 program payments have submitted a 926 form but not 927, 928, or 931 consent. Without that consent, USDA cannot review AGI information, and Illinois’ FSA office plans to contact those growers tentatively by month’s end.

County FSA offices, meanwhile, are attempting to contact farmers at risk of ineligibility.

FarmWeek Page 6 Monday, July 9, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: The extremely hot, dry weather continues with not much relief in sight. There were some scattered rains in Northern Illinois last weekend (June 29-30), but none in Winnebago County. We received less than 0.6 of an inch the whole month of June, and it has been three full weeks since our last rain. The corn on the lighter soils is wrapped up most of the time now, and the corn on our good, heavy, black dirt is now looking pretty tough. Thank goodness we have an irrigator on one farm, but that only reaches 110 acres of corn and 100 acres of beans. There have been lots of wheat combined since my last report, and that is one bright spot so far this summer. It was the best wheat we have ever had — 100plus bushels per acre, but we only had 40 acres. Several neighbors are reporting similar yields.

Pete Tekampe, Grayslake, Lake County: Another hot, dry week in Lake County with no rain.

I thought my report would be worse than it is. The corn is really showing signs of stress but still has good color. I don’t know why.

Beans seem to be shrinking and getting very thin on the hills.

Winter wheat is being cut with yields of 60 to 88 bushels per acre — unbelievable for the year we’ve had. Forecasters are calling for a couple more hot days and then turning cooler. Not much rain for the coming week. Hopefully, we can hang on until we get some rain.

Leroy Getz, Savanna, Carroll County: We experienced a pop-up shower on Friday, June 29, of 1.25 inches, making June’s total 2.25. Wind in the southern part of the county tipped corn and tore down tree limbs.

The crop looked better by Sunday (July 1), but the heat was oppressive. Milk production is down 1015 percent. Cows do not want to eat when it is so hot. Wheat farmers tell me they had 90bushel yields with excellent test weight and quality. I combined some oats Thursday, which is the earliest I’ve ever done that. It was bright and heavy with about a 95-bushel yield. Most cornfields are silking. Since pollen usually falls at night when it cools off, I believe we will have average pollination. How the ears will fill is yet to be determined. We have had 1,040 growing degree units.

Ryan Frieders, Waterman, DeKalb County: Storms last weekend (June 30-July 1) included strong winds and hail that damaged buildings, took down power lines, and blew down corn. It was a week of record high temperatures with no rainfall. Crop dusters are applying fungicide and insecticide on pollinating cornfields to control Japanese beetles and adult rootworm beetles. Soybeans are flowering for the second time and also are being sprayed for weeds, bugs, and disease.

Ken Reinhardt, Seaton, Mercer County: Last weekend (June 30-July 1) the county received from 2 to 5 inches of rain. There was some wind and hail, but the benefit of the rain along with the previous weekend’s amounts will go a long way toward making a crop. Planes are flying hot and heavy applying fungicides and insecticides on corn and beans. Rootworm and Japanese beetles are clipping silks in many cornfields.

Ron Moore, Roseville, Warren County: We did not receive any rain last week. The last rain was two weeks ago and it was only 0.1 of an inch. We are like most of the Midwest — hot, dry, and in need of rain badly. The corn crop has been pollinating in 95-degree or higher temperatures. We will know in the next few weeks how much yield loss has occurred because of this year’s weather conditions. The soybeans still are not growing very fast, but they are starting to flower. Pasture conditions are very short as well. The cattle are heading for the shade at 7 a.m. with the hot temperatures. The streams are still flowing, but that will not last much longer without above-normal rainfall.

Mark Kerber, Chatsworth, Livingston County: My report is the same as last week — HOT and DRY. A dome of hot air sat over the heartland of the country last week blocking any weather systems. Corn is trying to pollinate in 100-degree heat with no moisture. Not a good combination. Soybeans are trying to grow and flower. Agronomists tell us to get maximum soybean yields the plants need to have no stress when growing and shooting flowers. The heat has to be taking a toll on livestock producers as they try to keep animals cool with some respectable weight gain.

Remember to slow down on country roads.

Markets are trading weather. Have you looked at pricing some of your 2013 crop?

Ron Haase, Gilman, Iroquois County: We started the week with a shower on June 30.

Our farms received a range of 0.55 to 0.95 of an inch. That was followed up with temperatures in the low to mid-90s for two days, one day near 100 degrees, and two days above 100 degrees.

Close to 85 percent of the corn in the area has been pollinating during this hot and dry spell. Corn in the area ranges from the V11 growth stage on up to the R1 (silking) growth stage. Most corn is in the R1 growth stage. Area soybean fields are at the R1 or beginning flower growth stage or R2 full flower growth stage. Field activities during the past week included post emergence herbicide applications and roadside mowing. The local closing bids for July 5 were: nearby corn, $7.44; new-crop corn, $6.91; fall 2013 corn, $5.72; nearby soybeans, $16; new-crop soybeans, $15.03. As the prices go up to levels where you want to sell, the problem is in predicting what production there will be to sell.

That is the situation where crop insurance allows some sales to be made.

Brian Schaumburg, Chenoa, McLean County: One-hundred degree heat, no rain, severe drought, and no prospects for relief. Corn is trying to pollinate and we will know this week if it hit the nick.

Pollen shed and silk reception are out of sync. Aerial applications of insecticides are going on to combat rootworm beetles. A few are adding fungicide in case disease pressure arrives later on. Scouting for spider mites in beans has shown nothing ... yet. Corn, $7.39, fall, $6.83; soybeans, $16.02, fall, $14.96; wheat, $7.88.

Steve Ayers, Champaign, Champaign County: Our “five minutes before it’s too late countdown is at one,” but the weekend did have a chance for up to 0.2 of an inch of rain with cooler temperatures. Corn tassel is in full swing. The National Agricultural Statistics Service has the corn in our district at 33 percent silking and 63-inch average height.

Soybeans are 29 percent bloom and are shorter than normal. Preliminary shake tests indicate pollination went well, but we need rain to fill kernels (see article page 7).

Fisher Fair, I & I Historic Farm Days at Penfield, and Champaign 4-H Expo are this week.

Tom Ritter, Blue Mound, Macon County: Another dry week with extremely high temperatures. It is really taking a toll on the corn. I’ve been farming for 37 years and we are looking at possibly the worst corn crop that I’ve ever seen and we farm on very black soils.

Our biggest rain, which was about three weeks ago, was 0.4 of an inch, and that was the biggest rain we have had since the middle of April. Corn is firing and curled, and we are right in the middle of pollination. Not a good scenario and I’m not optimistic on the corn at all. Farmers have even cut back and canceled orders for spraying different fungicides on the corn.

Soybeans, however, continue to grow, but at a very slow rate. I’m somewhat optimistic about them if the rains ever start up again.

We had a chance for showers over the weekend here, but 30 percent chances are not generating much rain in our area.

Hopefully, the cooler temperatures will bring a little relief to the crops.

Wilfred Dittmer, Quincy, Adams County: Some parts of the county received rainfall last weekend (June 30-July 1) but our gauge barely got wet. I heard reports of up to a couple inches in scattered locations but no soaker that is so desperately needed if we want to put any grain in the bin this year. It may be a rerun of 1983 when one small truck would hold the yield from an entire field in our neck of the woods. Raccoons and some Japanese beetles are the pests of the week while the markets are in a frenzy.

Carrie Winkelmann, Tallula, Menard County: We received 0.3 of an inch of rain on Saturday, June 30, but most places around us got less than that. We are still incredibly dry, but there must be some optimists out there because there was some fungicide application going on last week in the area.

We have seen some corn rootworm beetle damage and sprayed for that.

Japanese beetles, while still having a presence, were less bothersome this year, which is a trend I hope will continue. Lime is being stockpiled. Corn is showing serious stress, but the beans seem to be miraculously holding out. But I know we are no where as bad off as some of my friends in the southern counties. Hoping for rain for everyone who needs it, but the forecast seems against us.

Todd Easton, Charleston, Coles County: The suffering continues for crops and producers alike. Corn and soybeans are deteriorating rapidly in this excessively hot weather.

Cornfields especially are onemore-missed rain away from being finished for the year.

Leaves are staying rolled up through the night — a sure sign the crop has about had it. Soybeans are holding on, but they are stuck at the same height they have been for several weeks. To make matters worse, scattered spider mite infestations are showing up in the beans and without a rain virtually all bean fields will be affected. The best rain chances we have seen in a while were predicted last weekend. It would be great if something more than disappointment comes out of that.

Jimmy Ayers, New City, Sangamon County: We had almost 0.3 of an inch of rain, and an area to the east of us supposedly had an inch. But I would say the majority of Sangamon County received no rain. It’s been very hot and dry.

We pulled ears on some of the early corn and noted 12 rows around and 34 long. That doesn’t put much in the yield bracket. There is still some of the later-pollinated corn that I haven’t got a handle on yet. Maybe I can report on that next week. The beans actually seem to be responding pretty well in this heat. The majority of the 30-inch beans still haven’t closed the rows, and the sun is hitting the dirt in the middle of the day and drying it out. Roadsides are pretty much dried up.

Looks like we possibly have a stretch of cool air coming at us this week.

Doug Uphoff, Shelbyville, Shelby County: Rainfall totals: January, 2.9 inches; February, 1.05; March, 1.7; April, 5.7; May, 1.55; June 0.2; July 0.2. Jim Angel, state climatologist, reports that on a statewide basis, the opening six months of 2012 were the warmest since records for Illinois began in 1895. I’ve heard rain makes grain. If that’s the case, don’t count on much grain from Shelby County this year.

Corn planted in mid-April tried to pollinate in this heat and it is toast. March and earlyApril corn is pollinated, but it’s firing up to the ear. The firing will only get worse with two more days of 100-plus temps forecast on Friday. I haven’t experienced anything like this, so I don’t really know how to relate it to you all. It is what it is, and it ain’t gonna be much. Insurance agencies better have saved all those premiums from the past 10 years because they are going to need them to pay out claims. If I were to go by the old saying, “If you don’t have anything good to say, don’t say anything at all,” the only thing I would have said is: “Hey, the grain markets have really gone up!”

Page 7 Monday, July 9, 2012 FarmWeek

CROPWATCHERS David Schaal, St. Peter, Fayette County: We had another week of 100-plus degree temperatures with isolated thunderstorms on Monday, July 2. When I say isolated, one side of a section may have gotten five drops, and the other side 0.5 of an inch. Rain amounts varied from those five drops up to 2-plus inches. There was also a strip that received hail that riddled some crops, and some high winds broke five big power poles east of St. Peter along Route 185. Corn that was in this high-wind path was lain flat. The excessive afternoon temperatures are putting major stress on the crops.

The corn rolls up as tight as it can. Bean leaves are cupping and the little double-crop beans that there are are melting away. There will be corn in the area that won’t be harvested with a combine. Normally we receive rain during our county fair and it started Sunday. I hope all goes well at the fair but am also wishing for the rain and a little cooler temperatures.

Jeff Guilander, Jerseyville, Jersey County: Well, at least it’s not dead yet. I do not know how this crop is holding on, or how it can produce in such miserable conditions, but there is still some life in the majority of it. The corn got burned badly last week with widespread whitening of the leaves. I guess the saving grace has been the nighttime temps, as the sweet smell of the pollen fills the air after 10 p.m.

The first-crop beans are trying to grow, but the double-crop beans seem to be getting thinner by the day (and they were not that thick to begin with). This definitely looks like a year we will tell our kids and grandkids about.

Rick Corners, Centralia, Jefferson County: As baseball announcer Kenny “Hawk” Harrelson would say, “It’s gone.” I’m talking about the corn. I don’t think any amount of rain could revive it.

Nothing is different from last week, except things are browner and right now, it’s 109.1 degrees.

Dan Meinhart, Montrose, Jasper County: It was an extremely hot and dry week. A few very isolated showers came through the area Monday (July 2), but most people received little or no rain. The heat index has been as high as 116. The early-planted corn in the extremely dry areas most likely will not survive. The mid- to late-May planted corn and soybeans still have some hope if cooler temperatures and rain come soon. No field activity took place last week. A cooling trend is predicted for this week with a slight chance of showers.

Dave Hankammer, Millstadt, St. Clair County: Triple-digit highs and low humidity were the norm for the week with 108 degrees being the highest temp.

Isolated showers passed through the region with only a lucky few receiving a trace. The corn crop continues to suffer through the high heat. The earliest corn has pollinated and working on filling out the ear.

Now corn planted at the beginning of May is starting to extend its tassels. It will be interesting to see which plantings fare the best through this harsh drought. First-crop soybeans continue to gain in height and extend their canopy to cover soil between the rows.

The plants will start to bloom soon. Hopefully, the temperature will return to more seasonal when blossoming is in full swing. The doublecropped soybeans are approximately 3 inches tall and waiting for rain. Farmers with hay fields have made their third cutting and are hoping for rain so these fields can recover enough to make another cutting. Obvious yield reduction can be seen in these fields and the drought raises concerns over an adequate hay supply, especially with many of the pastures turning brown this early in the summer. Local grain bids are: corn, $7.57; soybeans, $16.20; wheat, $7.97.

Kevin Raber, Browns, Wabash County: We are setting all kinds of records.

Unfortunately, most of them are bad for crops. There were a couple of thunderstorms this past week with variable amounts of rain. I received about 1 inch on most of my fields. That gave us a day or so of relief from the choking dust. Many cornfields are past help, no matter how good or bad the weather is the rest of the summer.

Dean Shields, Murphysboro, Jackson County: Same ole thing for the last three weeks. No rain. It’s getting very dry in Jackson County. A lot of the corn is turning white on the hill ground. The soybeans are growing very little and hardly any of the wheat field beans have come up. We sure would like to have a rain. We may get some this week. One thing we did have is a good sweet corn crop, for some reason, and the peach crop was good, too.

Ken Taake, Ullin, Pulaski County: Hot, hot, hot. That sums up the weather here in deep Southern Illinois. We had another week of heat and low humidity. Highs have been in the triple digits. We received 0.7 of an inch of rain on Tuesday. I heard of rain amounts anywhere from areas that received no rain at all up to 1.2 inches. Rain we did get certainly didn’t last long. Crops were already looking stressed again by Wednesday afternoon. We had a chance for rain again on Sunday evening, so I hope by the time you read this that we’ve had a nice shower. I’m afraid it’s too late to help the corn very much, but it certainly would help the soybeans.

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

FSA accepting pollinator habitats in continuous CRP The Farm Service Agency (FSA) is now accepting pollinator habitats that support diverse pollinator species as a continuous sign-up practice under the Conser vation Reserve Program (CRP).

Par ticipants of newly enrolled pollinator habitat practices are eligible to receive CRP sign-up incentive payments (SIP) of $150 per acre.

The SIP is a one-time payment made to landowners after the contract is approved.

Select practices that qualify for SIP include: pollinator

habitats; wetland restoration that restore the functions and values of wetland ecosystems that have been devoted to agricultural use, and habitat buffers that provide food and

cover for quail and upland birds in cropland areas.

The SIP for all other cont i nu o u s s i g n - u p p r a c t i c e s remains $100 per acre.

Continuous CRP sign-up

allows landowners to enroll at a n y t i m e. To b e a c c e p t e d , landowners must meet certain eligibility requirements.

Landowners interested in continuous CRP need to

contact their local county FSA office for more information and program requirements. Infor mation is available online at {www.fsa.usda.gov/crp}.

U of I Brownstown Center plans Agronomy Day The University of Illinois Brownstown Ag ronomy Research Center will host Agronomy Day July 26. The program will start at 8:30 a.m. and conclude with lunch at 11:30 a.m. The event is open to the public at no charge.

Weather permitting, presentations will take place in the research plots. Shaded

tour wagons will take participants to each stop.

Topics will include: production factors for high soybean yields; optimal corn planting and nitrogen rates; corn foliar disease identification and mana g e m e n t ; nu t r i e n t r e m ova l by c o r n and soybeans; and climate chang e

impacts on crop production and management.

More than 30 research and demonstration projects are conducted at the center annually.

The research center is located south of Brownstown on Ill. 185, about 4 miles east of the junction of Ill. 40 and Ill. 185.

Here’s easy method to check corn pollination

BY KEVIN BLACK

A number of stress factors or injuries can interfere with corn pollination. Once corn ovules (developing kernels) start to swell, the success of pollination easily can be determined.

Prior to that time period, here is an easy way to determine the success of pollination:

The time period for this test is between pollen shed and blister formation.

Select the corn ear you would like to check. Carefully remove the husks. With the tip of the ear pointing down, shake the ear. Silks will fall from ovules that have been successfully fertilized.

Silks that remain attached indicate ovules that have not been fertilized (pollinated).

Tip: With a sharp knife, make a longitudinal cut the length of the corn ear.

You may also carefully cut through husks at the base of the ear. This will make the husks easier to remove. With practice, you will be able to determine how deep to make the cuts.

This method of checking pollination only helps determine if the pollination process is successful. According to Dr. Kevin Black Bob Nielsen at Purdue University, severe wilting of corn in the two weeks prior to silking can reduce yield 3 to 4 percent per day. During the silking and pollen shed period, Nielsen indicates that severe stress can reduce yield 8 percent per day.

During the two weeks following silking and pollen shed, severe stress can reduce yield 6 percent for every day that the stress continues.

Kevin Black is GROWMARK’s insect and plant disease technical manager. His e-mail address is kblack@growmark.com.

Pollination of this ear of corn was poor, as indicated by silks that did not drop free of the ear when the ear was shaken.

FarmWeek Page 8 Monday, July 9, 2012

CUBA

CUBA

Too long an island unto itself?

BY MARTIN ROSS FarmWeek

They call it “The Crisis” — the historic moment when walls and ideologies fell across Eastern Europe and the Soviet Union and when Cuba, politically isolated from its powerful neighbor, the U.S., was forced to sink or swim.

Over the roughly 20 years since Soviet supplies and support stopped flowing onto the island, Cuba has managed to keep its head above water through partial “reallocation” of state-run lands, a push to regain its pre-1960 tourist base, and herculean efforts to feed its millions through imports and “urban agriculture” (see next week’s FarmWeek).

During Illinois Farm Bureau’s Cuba market study tour, FarmWeekNow.com Illinois farmers met with officials, business leaders, and coL i s ten to audio from tour ops working to meet the socialist nation’s food needs. participants and view our While the U.S. has been allowed to sell ag goods to Cuba photo gallery of the trip at for nearly a dozen years, it is under strict cash sale FarmWeekNow.com. requirements and a one-way, U.S.-to-Cuba trade policy.

IFB National Policy Director Adam Nielsen noted he hopes that study tour participants can address the value of U.S.-Cuba relations in Washington and recruit congressional “champions” to fight decades-old Cuban trade and travel sanctions.

“This trip will refocus and re-energize us for this goal,” Nielsen told Cuban officials.

Cuba today imports about 80 percent of its food supply, but Cuban ag ministry international relations specialist Juan Jose Leon reports “we’re working very hard in (domestic food) import substitution.”

“And as you are aware, we import a lot from the U.S.,” he stressed.

Leon nonetheless blasted what he deemed the 50-year-plus U.S. “blockade” of Cuban goods, arguing U.S. purchase of “good Cuban cigars” and other products would help President Raul Castro fund added food purchases. Plus, he noted “very poor” Cuban corn yields, a lagging dairy-cattle herd formerly fed with plentiful Soviet grain, and heavy fruit and vegetable losses due to “our inability to process (produce).”

Jamie Walter, a DeKalb County farmer and majority owner of Synergy Seeds, a combo seed dealership/crop insurance agency, applauded “the resiliency of the Cuban people,” particularly their “very interesting, very old school” and yet innovative style of lowinput farming.

However, Cuba’s isolation from high-tech, higher-yield agriculture has contributed to “quite a few limitations in their marketplace and in their production system,” Walter said.

“It seems quite obvious that this is not going to be a very efficient Jamie Walter way of feeding their population,” he argued, noting the absence of rural farms on the tour agenda. “I think there are a lot of market opportunities there. We personally didn’t get to see those the way I would have liked. They showed us, in Havana, what they wanted us to see and perhaps not everything we should or needed to see. But I do think that especially when it comes to grains and livestock and animal protein, there are real market opportunities for us. Those opportunities may be the next severe hurricane season away.”

U.S. cash purchase requirements are “very unusual among international business practices,” Cuban Chamber of Commerce President Estrella Madrigal Valdes told Illinois visitors. U.S. refusal to liberalize trade “has only acted to erode your competitive edge in the Cuban market,” she said.

That’s frustrating given the U.S.’ proximity to Cuba and “your quality of supply and efficient operation,” Madrigal maintained. She applauded her guests’ support for U.S. trade reforms, but emphasized “we’d like to see that willingness shared by your politicians, who claim to represent you.”

Alimport’s (Cuba’s state trading company) Eidel Mussi Vasquez noted the importance to Cuba of generating “different cash streams” through exports, credit, and capital expenditures by foreign countries such as Brazil. Those options currently are “not present” in Cuban relations with the U.S., said Mussi, who argued for U.S. extension of 360-day credit repayment for future imports “to alleviate the burden on our cash flow.”

That’s generally unheard-of in the shipping world, where 30- to 60Joe Zumwalt day credit is standard, Hancock County farmer Joe Zumwalt said. But given prospects for sales to a “close proximity buyer,” Zumwalt is open to offering Cuba long-term, “mortgage”-style credit.

Tom Jennings, Illinois’ former ag director, and another IFB tour participant, sees potential Cuban trade opportunities well beyond the ag sector. He noted that much of Cuba’s infrastructure is in poor condition, opening doors to U.S. equipment manufacturers such as Deere and Caterpillar.

“We’re No. 1 in food processing equipment and manufacturing in Illinois, and I’d think we’d have a lot to offer,” Jennings added.

Above, Cuba Market Study Tour participants Robert Inman of Pulaski County, foreground, and David Serven, an Illinois Farm Bureau board member, eye hightech milling equipment at Molinera de la Habana, a Cuban-Mexican venture located at the Port of Havana.

At left is the dome of Havana’s El Capitolio, Cuba’s pre-revolution national capitol building, which is now home to the Cuban Academy of Sciences.

Above: Friday morning in metro Havana, as an assortment of older-model cars, cycles, street carts, and packed buses fill the streets.

Below: Sunday afternoon at Havana’s Parque Central (Central Park), where vintage automobiles that have served Cuban citizens for decades are now put on display for fascinated tourists.

Left: While Cuba is headed toward increased selfemployment and entrepreneurship, images such as this one of Cuban revolutionary hero Che Guevara appear on apartment buildings, walls, and street-side signs. (Photos by Martin Ross)

Page 9 Monday, July 9, 2012 FarmWeek

cuba

Cuba: ‘A lot of millions,’ many challenges Estrella Madrigal Valdes, president of Cuba’s chamber of commerce, addresses Cuba’s economic growth objectives and trade concerns with Illinois Farm Bureau market study tour participants. “We don’t attach any political strings to establishing normal relations between our two countries,” she said. “When it comes to trade, we only look at competitive edge.”

M a l e c o n — H a v a n a ’s walled sea front — provides a scenic vista of Havana Bay and its historic site. Crumbling homes and buildings along the Malecon currently are under repair and reconstruction in an effort to rehabilitate the heavily tourist-traveled area.

VIVA LA EVOLUTION?

You can see it in the streets and neigh- everything else can be changed.

“Young people want to maintain the borhoods of Havana. A growing number social programs that have been achieved by of hole-in-the-wall eateries dispense a the revolution, but I have a friend who says fragrant blend of African, Spanish, and she wants the ‘good things of capitalism.’”

Caribbean cuisines.

Cuba has retained a large measure of The avenues boast colorful graffiti that hails the solidarity, productivity, and revo- personal creativity over the decades — the locals boast about Havana’s art muselutionary heritage of the Cuban people. ums and ballet company, and the city is Isabel Garcia senses something else in home to international jazz and film festithe streets: a generally “happier” people who see national progress in health, educa- vals and a renowned annual book fair.

Garcia sees music, movies, and a tion, and domestic equality and a new genmutual love of baseball as potent links eration that “wants to maintain the spirit between the U.S. and Cuba, and believes of the revolution, but with changes.”

Cubans would embrace relations with Garcia is Havana-based coordinator their northern neighbor as “part of the with Global Exchange, which orchestrates visits by “research delegations” and country’s development.”

Last week, as Cuban fervor over the approved “people-to-people” groups.

Euro Cup soccer finals subsided, Team The former New Yorker, who’s USA — a squad of players who’ve comworked in Cuba since 1987, hopes U.S. pleted their college freshman or sophomore tourists someday can “sit on the beach and drink a mojito,” and enjoy the fruits of Cuba’s evolution toward a more open, entrepreneurial society.

Cuban officials are seeking to develop a more efficient economy within their nation’s socialist framework. The government’s current economic plan anticipates cutting more than 1 million state jobs and, potentially, legalizing the sale of private property, and selfemployment is on the rise.

Colorful, often socially relevant graffiti is one of HaAs a result, family-run restauvana’s most publicly prominent forms of artistic expresrants (“paladares”) are opening sion. Graffiti is spreading across the country and has their doors to international tourists, been featured at island art festivals. (Photos by Martin and carpenters and other craftsmen Ross) are plying their skills for higher personal seasons — headed to Havana for a fiveprofit — profit that ultimately could help game showdown with Cuba’s national team.

Cubans buy more imported goods.

U.S. relaxation of policies regarding “A lot of people feel this is going to communications and support between allow them to be more creative, to feel a Cuban-Americans and their relatives on little more independent economically, the island has helped foster entrepreneurand to not have to depend on a govern- ial spirit. Visiting U.S. family members ment job,” Garcia told FarmWeek. deliver supplies crucial to restaurant startIt’s mostly the younger generation that up as well as TVs, appliances, and other wants that. You go to a self-employed restau- modern home conveniences. rant or cafeteria, you see the young people.

“They feel a responsibility to help “If you talk to people, they say their their relatives here and pride that main objective is to have self-determinathey’ve been able to be in the U.S. and tion, and to have no foreign power condo that for their families,” Garcia said. trol the country. But within that objective, — Martin Ross

BY MARTIN ROSS FarmWeek

Amparo Garza-Lang represents the Illinois Department of Agriculture (IDOA) across Latin America. She sees her turf as continually fertile ground for Illinois ag exports, arguing “more than 500 million people is always a very good market.”

Based in Mexico City, Garza-Lang focuses on perennial mega-market Brazil as well as developing markets where U.S. free trade agreements have taken or are poised to take root, including Mexico, Panama, Colombia, and the Dominican Republic — a major Caribbean market for the U.S. “The Caribbean has more than 40 islands,” she told FarmWeek during Illinois Farm Bureau’s Cuba market study tour. “Cuba is the largest island. It also has the largest population — 11 million. The Dominicans have 9 million. You put them all together, and that’s a lot of millions. There’s a lot of potential there. “(Cuban) tourism will bring a lot to Illinois in the food business. In comparison to Brazil, we are closer. When you are closer to the customer, it’s always better.”

Backyard potential Former IDOA director and tour participant Tom Jennings shares her optimism. Cuban trade interests “ definitely recognize the logistical advantages that we have, transportation-wise — a three-day trip instead an 18-day to 24-day trip (from Brazil or Europe) for grain or any other bulk or container commodities.”

Molinera de la Habana (IMSA), a Mexican/Cuban milling venture, relies largely on wheat from France, Germany, Canada, and Mexico. Traffic in U.S. hard red winter wheat halted three years ago.

IMSA general director Maria Elena Quintana Graverán said Tom Jennings transportation costs from the Gulf would be roughly a third of those for French wheat shipments, at roughly a fourth the travel time, and offering IMSA higher milling quality than the European product.

“It would be good all over,” she concluded — that is, if Cuba were granted direct credit for U.S. wheat purchases. In turn, IMSA sees the U.S. as an ideal market for the 5 percent of production it does not sell to the Cuban government or citizens.

IMSA operates in a key industrial zone adjacent to the Port of Havana — one of the nation’s four major ports and one able to receive container shipments four days a week.

Brazil is investing in a major new container terminal at the Port of Mariel west of Havana. Eidel Mussi Vasquez, an official with Cuba’s state trading company, Alimport, reported the government is eyeing added container handling facilities “elsewhere in Cuba.”

Jennings is encouraged by port improvements that could tap container traffic from Northeastern Illinois’ “global freight yards,” but said he is concerned about the implications of Brazil’s potential $800 million investment in the Mariel port. He fears “the Brazilian foothold here might edge us out,” and fellow tour participant Joe Zumwalt from Hancock County ponders the possibility that Mariel could become a commercial port for Brazil.

“A lot of farmers think we’re just going to start boating corn and soybeans down there, but their infrastructure is not ready to handle that yet,” Kankakee County egg producer Keith Mussman argued. “But they obviously need feed for their livestock, because their livestock is not producing as well as it Keith Mussman should be.”

Product for the people Jennings noted Cuba has roughly Chicago’s area and population density. He sees an island crowded with “hungry people used to just staples in their diet,” as well as a tourist trade that could swell significantly with an end to U.S. travel restrictions.

Those economically disparate groups have converged with the proliferation of paladares — small family-run restaurants that offer foreign visitors a homier and often heartier cultural alternative to state-run and luxury “white linen” restaurants. As the popularity of paladares rises, so likely will demand for the food needed to stock them — food currently in limited supply.

Refrigerated containers could deliver U.S. pork and other products to citizens seeking improved animal protein and travelers attuned to “a better product than what we’ve seen in some of the (Cuban) restaurants,” Jennings said.

U.S. Meat Export Federation (USMEF) spokesman Joe Schuele noted “the market is quite open,” though USMEF and other groups currently are prohibited by the U.S. from promoting U.S. products in Cuba. Because of the island’s economy, U.S. sales to Cuba largely are confined to beef livers and cheap pork “variety meat” in little demand in the U.S. “We just need commerce to take hold down there,” Schuele told FarmWeek.

“Then it would become a good market.”

FarmWeek Page 10 Monday, July 9, 2012

sAfETy

Farmer training in anhydrous safety going online

BY KAY SHIPMAN FarmWeek

Anhydrous safety training is coming to a computer monitor near you.

The Illinois Fertilizer and Chemical Association (IFCA) is working with the Illinois Department of Agriculture (IDOA), Illinois Farm Bureau, and Illinois Corn Growers Association (ICGA) to develop an online anhydrous safety training program for farmers, according to Kevin Runkle with IFCA. The voluntary online program will be a mix of text and video featuring

safety and first aid practices. Runkle estimated the program will take about an hour to complete.

A real-life basis for the safety scenarios will be featured. “It will be based on actual (anhydrous) incidents,” Runkle said.

After the online program is developed, the plan is to make it available through links on the homepages of IFCA, IDOA, IFB, and ICGA around the first of the year, according to Runkle.

Runkle envisioned farmers using the online program to review safety proce-

‘It will be based on actual (anhydrous) incidents.’

— Kevin Runkle Illinois Fertilizer and Chemical Association

dures or to train family members and new employees.

Shelbyville farm site of August twilight tour Community Supported Agriculture (CSA) will be the focus of an August twilight tour organized by the Central Illinois Sustainable Farming Network to a Shelby County farm.

The tour will be from 6 to 8 p.m. Aug. 7 with registration from 5:30 to 6 p.m.

The group will tour the Samara Farm, 1150 N., Shelbyville. Zach and Annie Met-

zger of Samara Farm will discuss harvest, storage, handling, pricing, and marketing within a CSA. For more information or to register, go online to {https://webs.extension.uiuc. edu/registration/?RegistrationID=6646} or contact Deborah Cavanaugh-Grant with University of Illinois Extension at cvnghgrn @illinois.edu or by phone at 217-782-4617.

A companion piece will be a daylong anhydrous safety course also being developed for farmers.

The Asmark Institute, which is building a new training facility in Bloomington, is developing the program. Asmark plans to offer the safety course at its new Agricenter.

Asmark also expects to offer the safety course around the first of the year, according to Runkle.

FarmWeek will provide additional information about the online program and the safety course after it becomes available.

DATEBOOK July 10 University of Illinois Northern Illinois Agronomy Center field day, 9:30 a.m. to 12:30 p.m., Shabbona.

Indian Creek Watershed tour and program, 7:30 a.m. to noon, Baptist Church, Fairbury. RSVP to Livingston County Soil and Water Conservation District, 815-8446127, extension 3.

July 12 Southern Illinois University Belleville Field Day, 8 a.m., Belleville Research Center, Belleville.

July 17 Orr Center Field Day, 9 a.m. – noon, Perry.

July 17-18 Advancing Wind Power in Illinois, Marriott Hotel and Conference Center, Normal. To register, go to {www.RenewableEnergy.ilstu.edu}.

July 18 University of Illinois Northwest Research Center field day, Monmouth. Tours start at 8 a.m.

July 19 2012 Illinois Forage Expo, 9 a.m. to 3 p.m., Pittsfield.

July 25 Illinois Farm Bureau Commodity Conference, Marriott Hotel, Normal.

July 26 University of Illinois Brownstown Agronomy Research Center Agronomy Day, 8:30 to 11:30 a.m., Brownstown.

July 29 Pull and Cast for Agriculture Education, World Shooting and Recreational Complex, Sparta. Registration deadline July 16. Go online to {www.rcfb.org} or call 618-4434511.

Aug. 9-19 Illinois State Fair, Springfield.

Aug. 16 University of Illinois Agronomy Day, 7 a.m. to 2 p.m., Crop Sciences Research and Education Center, Urbana.

Aug. 24-Sept. 3 DuQuoin State Fair, DuQuoin.

Aug. 28 Meet the Buyers event, Highland Community College conference center, Freeport. Registration deadline Aug. 24. Call 815-235-4125.

Sept. 26 Meet the Buyers event, University of Illinois Extension office, Springfield. Registration deadline Sept. 24. Call 217-753-5200.

Page 11 Monday, July 9, 2012 FarmWeek

Production

IMPA to host dairy tech showcase at two Illinois farms The Illinois Milk Producers’ Association (IMPA) will sponsor a dairy tech showcase Tuesday, July 31.

The conference will be hosted by dairy consultant and former Extension specialist Dave Fischer and will highlight dairy technology at two Southern Illinois dairy farms.

Attendees will visit Meyer VMS Dairy, owned by Paul and Lisa Meyer, at 18718 Ellwood Road, Breese. The farm is a mile north and east of St. Rose in Clinton County.

The Meyer Dairy recently incorporated a DeLaval robotic milking system, as well as an automated calf

feeding system and long-day, short-night lighting.

Also included on the tour is Elm Farms Dairy, owned

by Norb, Hadley, Larry, Wayne, and Michelle Hasheider. Elm Farms Dairy features a hightype registered Holstein herd, a Lely robotic milking system, and a manure flush system with sand bedding reclamation.

The farm is located at 15542 Bottom Road, Okawville, which is approximately a mile west of town on Route 177, and north on Bottom Road.

Each farm stop will include an organized tour, discussion, and question-and-

Milk price posts first increase in months; production sinks

The Class III price for milk adjusted to 3.5 percent butterfat for the month of June was $15.63 per hundredweight, 40 cents higher than the previous month.

The June price represents the first month-to-month price increase in six months. Prices had been pressured due to nearperfect conditions for milk production as cows were milking extremely well.

This all has been changing the past two weeks as record high temperatures, coupled with oppressive humidity, have put a huge dent in milk production.

The early spring allowed for dairymen to squeeze out an extra cutting of hay this year, but yields have been drastically cut as the prolonged dry weather curtailed alfalfa and hay yields, leading to serious hay shortages in some areas.

answer sessions led by Fischer.

The tour of Meyer VMS Dairy will begin at 10:30 a.m. and continue through noon.

The tour of Elm Farms Dairy will begin at 1:30 p.m. and

continue through 3 p.m.

Travel time between the farms is approximately 45 minutes, and attendees are responsible for their own lunch arrangements. There is no need to register for the

event, and participants may attend either one or both of the host farm operations.

For more information, contact Jim Fraley, IMPA manager, at 309-557-3109 or Dave Fischer at 618-224-7951.

Herbicide-resistant weeds field tour focus A Central Illinois on-farm tour of field niques with alternative herbicide chemistries research plots will offer strategies for managing herbicide-resistant weed populations. The free event will be July 24 and include weed scientists from the University of Illinois, Southern Illinois University, and University of Tennessee.

Pre-registration is recommended. Tour participants will be transported on buses that will leave from the southwest parking lot at the U of I Assembly Hall, Urbana. Two departure times from the parking lot will be 7:30 and 9:30 a.m.

At the Douglas County field, participants will rotate among four 20-minute presentations. After the field tour, participants will travel to the Bayer CropScience research station at White Heath for lunch and discussion.

Topics will include: • Herbicide-resistant Palmer amaranth has changed farming practices in the mid-South, and herbicide-resistant waterhemp may do the same thing in the Midwest; • Spray additives and application tech-

to improve control of herbicide-resistant weeds; • Evolution of herbicide resistance and implications for the future in Illinois; and •Management techniques for waterhemp populations that are resistance to multiple herbicides.

The group will be transported back to the Assembly Hall. Once they are back on campus, they may join a 90-minute “OnTarget Application Academy” about the latest techniques and technology to improve herbicide deposition and reduce off-target movement.

The educational program is a collaborative effort of the weed science program at the U of I and its industry partners at Bayer CropScience, Valent, and BASF. To register online, go to {http://events.SignUp4.com/REspecttheRotation2012}. Registration also may be done by contacting the local Bayer representative or by calling Daren Bohannan at 217-836-7874.

FarmWeek Page 12 Monday, July 9, 2012

FARM BUREAU IN ACTION

Jo Daviess County FB ‘adopted’ lawmaker tours farms

BY CHRISTINA NOURIE

Rep. Carol Sente (D-Vernon Hills) took a whirlwind tour of three Jo Daviess County farms recently courtesy of her hosts and the Jo Daviess County Farm Bureau.

Sente was ‘adopted’ by the county Farm Bureau in 2010 and hosted farmers on a tour

remains healthy and safe.

Her next stop was Wildberry Farm, a beef farm that has been in the seed stock business for more than 30 years.

The group received an overview on the breeding and raising of cattle as well as some of the challenges faced in the beef industry. After-

how farmers raise their animals or grow their crops.

Christina Nourie is Illinois Farm Bureau’s northeast legislative coordinator. Her e-mail address is cnourie@ilfb.org.

Car-Mar Farm is a third-generation dairy farm that milks 425 cows three t i m e s a d ay a n d h a s 4 0 0 h e a d o f young stock on site.

of her district last summer.

Sente’s first stop was the Car-Mar Farm, a third-generation dairy farm that milks 425 cows three times a day and has 400 head of young stock on site.

The farmers discussed several important dairy-related issues, including, use of rBST, tail docking, and gestation stalls.

The representative learned about the care the animals receive and what farmers do to ensure their livestock

ward, the Jo Daviess County Beef Association provided a grilled steak lunch.

The final stop was the Greg and Janice Thoren farm, where they grow 2,200 acres of corn, soybeans, hay, wheat, and barley.

The tour included a discussion of and demonstration on the use of GMOs and pesticides in crops. Sente also rode a tractor and learned about modern farm equipment.

She commented that other non-farmers need to come out to the country and tour farms to better understand agricultural issues, especially those who may challenge

Jo Daviess County Farm Bureau board member Greg Thoren, center, explains modern farm technology to Rep. Carol Sente (D-Vernon Hills) as fellow county Farm Bureau board member Ronald Lee Lawfer listens. Sente, who was matched with the county Farm Bureau through the Adopt a Legislator program, toured Thoren’s farm and two others recently when she visited the county. (Photo by Christina Nourie)

Auction Calendar

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Wed., July 11. 3:30 p.m. Farm machinery and misc. Lawrence and Carrol Farthing, MORRISON, IL. Lenny Bryson and Mark Ebert Auctioneers. topauctions247.com/paspolo.

Sat., July 14. 9:30 a.m. Farm machinery and misc. Phil Legel and Reba Legel Estate, METAMORA, IL. Schmidgall Auction Service, Inc. www.topauctions247.com/schmidgall 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.

Wed., July 17. 10 a.m. Skid Steer, Vehicles, Forklifts and miscellaneous. Becker Farms, CHESTNUT, IL. Mike Maske Auction Service.

Thurs., July 19. 11 a.m. DeKalb Co. Land Auction. HINCKLEY, IL. www.mgw.us.com Thurs., July 19. 5 p.m. Bids Due. LaSalle Co. Land Auction. www.mgw.us.com Fri., July 20. 10 a.m. Iroquois Co. Land Auction. WATSEKA, IL. murraywiseassociates.com Fri., July 20. 9 a.m. Farm & Construction Eq. Consignment 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. 9 a.m. Farming Eq. Dale and Joan Morton, TRILLA, IL. Schmid Auction and Realty Co. www.schmidauction.com Tues., July 24. 10:30 a.m. Land and Gravel Pit Auction. Dan and Paula Ellberg, FORRESTON, IL. www.lennybrysonauctioneer.com Wed., July 25. 1 p.m. Winnebago and Ogle Co’s Land Auction. Held at Monroe Center Fire Station. murraywiseassociates.com Sat., July 28. 10 a.m. DeKalb Co. Farmland. Karrie Ruetten and Kelly Barto, WATERMAN, IL. Rediger Auction Service and Brummel Realty, LLC. www.rickrediger.com or www.brummelrealty.com Sat., Aug. 4. 12 p.m. Fulton Co. Land Auction. Ione Hamman Est., LONDON MILLS, IL. Lowderman Auction & Real Estate. www.lowderman.com Thurs., Aug. 9. 2 p.m. Moultrie Co. Land Auction. CHAMPAIGN, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.com Thurs., Aug. 9. Summer Farm Closeout and Consignment Auc. Agri-Tech Inc. Fri., Aug. 10. 9 a.m. Henry Co. Land Auction. ANNAWAN, IL. Schrader Real Estate and Auction Co., Inc. schraderauction.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 Thurs., Aug. 23. Kankakee Co. Farmland Auction. Melba F. Novak Trust Farm. Soy Capital Ag Services. www.soycapitalag.com

Page 13 Monday, July 9, 2012 FarmWeek

from the counties

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DAMS — An informational meeting about the Enbridge pipeline will be at 1 p.m. Tuesday at the Farm Bureau office. Call the Farm Bureau office at 275-7305 for reservations or more information.

UREAU — Farm Bureau will sponsor a health screening from 8:45 a.m. to 3:30 p.m. Tuesday, July 24, at the Farm Bureau office. Screenings include carotid arteries, abdominal aortic aneurysm, peripheral artery disease, and osteoporosis. Cost for members is $100. Call 877-732-8258 for an appointment.

• Farm Bureau is sponsoring an Ag Olympics at 3 p.m.

Thursday, July 26, during the 4H fair. Participants are asked to dress appropriately for becoming wet. Registration deadline is Monday, July 16. Teams will be determined the day of the event.

Call the Farm Bureau office at 875-6468 to register or more information.

• Bureau and Lee County Farm Bureaus will sponsor a trip Friday, Aug. 17, featuring a boat ride on the LaSalle Canal and a tour of the Hegeler Carus Mansion. Cost is $35, which includes lunch. Registration and payment are due to the Farm Bureau office by Monday, July 30. Call the Farm Bureau office at 815-875-6468 for 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 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 345-3276 for reservations or more information.

OOK — Farm Bureau and the University of Illinois Extension will sponsor a babysitting workshop for preteens and teens from 9 a.m. to 4 p.m. Friday, Aug. 10, at the Farm Bureau office. Participants are asked to bring lunch, and Farm Bureau will provide drinks. Cost is $10. Call the Farm Bureau office at 708-354-3276 by Friday, July 27, to register or for more information.

• The annual Farm Bureau Family Celebration Picnic will be from 1 to 4 p.m. Saturday, Sept. 22, at Goebbert’s Farm, 40

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W. Higgins Road, South Barrington. Tickets are $15 for adults and $10 for children 3-11.

Children under 2 are free.

Included in the cost will be a maze; wagon, pony, and camel rides; and haunted house or jumping pillow. Children will receive one small pie pumpkin and lunch. Tickets must be purchased by Friday, Sept. 7. Call the Farm Bureau office at 708364-3276 for tickets.

DGAR — A crop insurance meeting will be at 10 a.m. Thursday at the Farm Bureau office. Country Financial adjusters will discuss claims for crop insurance under the current drought conditions. Call the Farm Bureau office at 217465-8511 or 217-465-8320 for more information.

FFINGHAM — Farm Bureau’s 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 Tuesday for reservations. A drawing will be held for those who make a reservation and attend.

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 815-4330371 for reservations or more information.

EE — The Young Leaders Committee will have its annual cookout at 6:30 p.m.

Saturday, July 21, at Nathan and Tiffany Hummel’s, 335 N. Blackstone Ave., Amboy. The cookout is open to all members between the ages of 18-35.

Bring a dish to pass and your own lawn chair. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net for more information.

• Bureau and Lee County Farm Bureaus will sponsor a trip Friday, Aug. 17, featuring a boat ride on the LaSalle Canal and a tour of the Hegeler Carus Mansion. Cost is $35, which includes lunch. Call the Farm Bureau office at 815-857-3531 for reservations or more information.

ONROE — Scholarships are available to college students. Call the Farm Bureau office at 939-6197 or email mcfarm@htc.net to receive a scholarship application. Dead-

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line to return applications is July 15.

EORIA — A farmland assessment review public hearing will be at 6:30 p.m.

Thursday at the Farm Bureau office.

• Deadline to order Michigan blueberries is Friday. Blueberries are available in five- and 10pound cartons. Members may pick up their orders on Thursday, July 19, at the Farm Bureau office.

• The Heart of Illinois Fair is Friday through Saturday, July 21, at Exposition Gardens, Peoria. Farm Bureau will have an interactive display in the Youth Exhibition Building.

• Members are invited to participate in a golf scramble Saturday, July 21, at Laurel Greens. Cost is $15, which includes golf and cart. A steak fry is an additional $10.

Call the Farm Bureau office by Friday for reservations or more information.

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IKE — A “Planning for Transfer of the Family Farm and Tax Changes” seminar will be from 5:30 to 8 p.m. Tuesday, July 17, at the Farm Bureau office. Dinner will be served. Call 285-2233, 285-4427, or your Country Financial representative for reservations or more information.

COTT — A “Planning for Transfer of the Family Farm and Tax Changes” seminar will be from 11:30 a.m. to 2 p.m.

Tuesday, July 17, at the Nimrod Funk Extension building, Winchester. Lunch will be served.

Call 742-3351 or 742-3182 for reservations or more information.

HELBY — The Shelby County Farm Bureau Foundation will sponsor its annual Culumber Classic at 8 a.m. Saturday, at the National at Eagle Creek, Findlay. New team categories include Bicentennial, Family, and Farmer Team and Fun Foursome. Cost is $50 for each golfer, which includes golf, cart, and lunch. Registration forms are

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available at the Farm Bureau office. Call the Farm Bureau office at 217-774-2151 or e-mail shelbycofb@consolidated.net for reservations or more information.

ERMILION — Farm Bureau is taking orders for Rendleman Orchard peaches.

Cost for a 25-pound box is $23 for members and $28 for nonmembers. Orders are due by Tuesday, July 24. Delivery will be the end of July or first part of August. Call the Farm Bureau office at 217-442-8713 or visit the website {www.vcfb.info} for more information.

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 467-2347 or email wcfb@mtco.com for more information.

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FarmWeek Page 14 Monday, July 9, 2012

profitability

Fertilizer market tight; new pricing tool unveiled

BY DANIEL GRANT FarmWeek

The fertilizer market could remain tight in coming months, based on a report released last month.

The International Fertilizer Industry Association (IFIA) last month projected world fertilizer demand will continue to expand through 2016.

Demand the next five years was projected to grow annually by 3.7 percent for potash, 2.3 percent for phosphates, and 1.5 percent for nitrogen.

“Reduced inventories and strong crop prices are expected to persist in the agricultural commodity markets because of the need to supply the fast-rising food, feed, fiber, and bioenergy markets,” said Patrick Heffer, director of IFIA’s ag service. “This is anticipated to stimulate fertilizer demand.”

The industry is expected to boost fertilizer production as well. But delays in expansion projects, combined with increasing demand, are expected to keep the fertilizer markets tight near-term.

About 250 new fertilizer plants around the world are projected to come on line in the next five years. But about half of the projects face delays ranging from six to 18 months, which will slow the expected growth in capacity.

Farmers who struggle to

find pricing information for fertilizer and other inputs for comparative purposes now can use a new tool to shop around.

Pro Farmer last month unveiled an inputs monitor service that is free at least into August. Farmers and others interested in farm input prices can use the online service at {www.inputsmonitor.com}.

‘Price movement ( fo r i n p u t s u p plies) has gotten clouded over time.’

— Chip Flory Pro Farmer

Users of the inputs monitor can click on the region of their state to get price quotes. The price quotes are from actual retailers in each area, although the retailers won’t be listed by name.

“The whole goal is to level the playing field in the inputs market,” said Chip Flory, Pro Farmer editor. “Farmers can easily compare offers (for input products) in their district and across their state.”

The price survey for the inputs monitor includes more than 300 retailers in 12 Mid-

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

40 lbs.

Range Per Head $29.47-$45.20 n/a

Weighted Ave. Price $37.29 n/a

This Week Last Week 76,020 73,650 *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 $90.93 $95.08 $67.29 $70.36

Change -4.15 -3.07

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 114.00 116.36 -2.36 117.00 116.03 0.97

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 146.16 147.66 -1.50

Lamb prices NA

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 06-28-12 13.9 21.5 22.2 06-21-12 7.6 19.5 30.0 Last year 5.7 25.5 37.1 Season total 1215.5 84.3 1321.0 Previous season total 1424.8 103.5 1486.1 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

west states, including Illinois.

Flory said the need for more price transparency in the fertilizer market began in 2008 when commodity prices peaked and then retreated, which left numerous retailers holding the bag in the form of overpriced fertilizer.

“A lot of dealers got caught holding high-priced inventory.

They don’t hold that kind of inventory any more,” Flory said.

“Price movement (as a result) has gotten clouded over time.”

Pro Farmer plans to add the inputs monitor to its risk management products, which means Pro Farmers specialists will make purchase recommendations for everything from fertilizer to diesel fuel.

Farmers in Illinois also can

get input price information via the Illinois Production Cost Report released every other week by the Illinois Department of Agriculture’s

BY SID PARKS

sions are offered annually for those who are or are in process of becoming FS crop specialists.

Some call this week “boot camp” because it is very rigorous in-field training. They leave at the end of the week with a greater understanding of the science and application of agronomy.

These individuals also come with many expectations and are quite fearless when it comes to technology. I give them both theory behind precision farming and information management and instruction in practical hands-on data collection.

Now, you might be asking, “What does this have to do with the FarmWeek space allocated to farm profitabili-

market news service.

Information about the Illinois report can be obtained by calling 888-458-4787 or going online at {www.ams.usda.gov}.

New technology in good hands I recently had the opportunity to speak with two groups of individuals affiliated with our FS companies. I can comfortably say, they get it!

The “it” to which I am referring is the understanding and application of Sid Parks information management technologies.

The first group was GROWMARK’s 2012 summer interns. These individuals come from 22 different universities across North America and typically are a year from graduation.

Their skills vary from accounting to logistics, but they are overwhelmingly from the farm, are agriculture majors of one flavor or another, and are looking for practical experience in the ag industry.

GROWMARK has been offering an intern program for more than 50 years, and I am pleased to say the vast majority of these interns eventually find their way into our system as full-time employees.

You may encounter these individuals working in your local FS cooperative, acquiring experience in the fields or offices, or working alongside current employees and gaining understanding in their chosen areas.

In return, our system gains a talented summer employee, as well as the opportunity to evaluate and gain potential future employees.

The second group involved participants in training conducted by our agronomy services department. These ses-

ty?” For me — just about everything.

If we are to feed future generations and be profitable in running our farming operations, we all need to be comfortable with current and future technology as it becomes available. As I said in the opening, our new and future employees “get it” and will help you “get it” as well.

Your local FS cooperative is experienced in maximizing crop yields and using technology to operate most effectively.

Contact them with any questions for your farming operation.

Sid Parks is GROWMARK’s manager of precision farming. His e-mail address is sparks@growmark.com.

USDA

Farm Service Agency REPORTING CROP LOSSES: Crop losses are losses on acres that were planted timely with the intent to harvest, but the crop failed and could not be harvested because of a disasterrelated condition.

To meet Farm Service Agency (FSA) program eligibility requirements, farmers must report failed acreage to their county FSA office before disposition of the crop. Prevented planted acreage must be reported to their county FSA office within 15 days of the final planting for the applicable crop.

Farmers who have Noninsured Crop Disaster Assistance Program (NAP) coverage will be required to report crop losses within 15 days of the disaster occurrence or when the loss first becomes apparent by using an FSA form “CCC-576 — Notice of Loss and Application for Payment Noninsured Crop Disaster Assistance Program.”

It is important for farmers to file accurate and timely reports before the crop is destroyed to prevent the potential loss of FSA program benefits.

Failed acreage reports allow the FSA to maintain an accurate record to report how many acres of each crop were destroyed or damaged by a disaster event. This information is used to determine county and state eligibility for programs, such as the Average Crop Revenue Election (ACRE) program, as well as future federal farm programs.

Page 15 Monday, July 9, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Crop indices not as bad as 1988 With all of the comparisons to 1988 that are being floated, we thought it important to at least put it in perspective. It was the last significant drought we experienced in the Corn Belt.

Even though this year’s crops have deteriorated rapidly since planting, they are still not as bad as the crops were in the early part of the 1988 growing season.

The initial 1988 good/excellent rating for corn was just over last week’s level for this crop. By July 1, 1988, only 14 percent was rated good/excellent, compared to this year’s 48 percent.

The story is much the same for soybeans, except that the initial rating for the 1988 crop was significantly below even the current level for this year’s crop.

But like corn, on July 1, 1988, only 16 percent of the crop was rated good/excellent, compared

to this year’s 48 percent.

For 20 years, we have used an index basing the ratings on a 1 to 5 scale to gauge conditions because it takes into account the poor/very poor ratings as well. In 1988, the poor/very poor ratings escalated quite rapidly, easily eclipsing those for this year’s crop.

So far, the trend of the crop ratings is following the 2002 crop closer than any other year. That doesn’t imply this crop cannot get significantly worse, but it does suggest the outcome of the 2002 crop is worth consideration.

That year, corn yield ended 7 percent below trend, with soybeans 6 percent below. Using this year’s trends, the respective yields would be 151.9 and 42.0 bushels/acre. By comparison, the 1988-based counterparts would be 125.5 and 36.7 bushels/acre.

How the crops turn out is anybody’s guess at the moment, but it is worth noting that the 1988 drought was arguably the worst drought since those in the 1930s. That makes it a modern day extreme.

AgriVisor endorses crop insurance by

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

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Cents per bu.

ü2011 crop: Sell remaining old-crop bushels now. ü2012 crop: Get sales to recommended levels now!

This surge will start to ration demand. We prefer hedge-toarrive contracts for making sales. ü2013 crop: If December 2013 futures close below $5.98, price 10 percent of your 2013 crop. vFundamentals: The central focus remains the drought in the Midwest. The forecast is calling for a shift to cooler temperatures, but rainfall amounts still appear to be minimal. If substantial rains develop, the market would be vulnerable to a sharp break.

The trade is looking forward to the new USDA supply/demand projections.

In this mix, demand starts to become as important as supply, and typically demand tends to underperform early estimates in years with high early prices. Of recent year’s this one has the best potential of fulfilling the old adage, “short crops have long tails.”

In other words, prices peak early, and tend to decline through the marketing year.

Soybean Strategy

ü2011 crop: Wrap up any old-crop sales now. ü2012 crop: Use rallies above $15.25 on November futures for catch-up sales. ü2013 crop: Price 10 percent of your 2013 crop if November 2013 futures close below $12.99. vFundamentals: In the short term, weather is the primary focus. As long as there’s no significant moisture relief, look for prices to remain firm.

Temperatures are expected to cool, but little rain is expected in the immediate future. The trade is looking forward to the new USDA supply/demand estimates. While most of the focus will be on supply, demand becomes equally important with high early prices. China continues to be a steady, if not slightly aggressive, buyer and importer of soybeans. One has to consider the possibility the Chinese may be accumulating a physi-

cal inventory of soybeans to keep from getting caught short. If so, that could lead to sluggish demand this winter.

Wheat Strategy

ü2012 crop: The uptrend in wheat remains intact, with prices being supported by corn. Make catch-up sales with Chicago September trading above $8. The futures carry makes it attractive to store wheat into the winter but only if it’s priced or hedged. We may recommend an additional10 percent sale at anytime, so stay close to the Hotline. We will be watching closely to see how far the drought situation can carry the corn market.

But when prices break, the decline will be as fast as the rally. vFundamentals: The basic fundamental structure in wheat remains unchanged, with the price surge linked to the rally in the corn market.

International wheat conditions have deteriorated, primarily in the Black Sea, Australia, and northern China.

Recently, milling wheat prices at Russia’s Black Sea port were at an all-time high even as harvest is getting under way. But even with the eroding world output, supplies are not nearly as tight as they were in 2008 or 2010.

FarmWeek Page 16 Monday, July 9, 2012

perspectives

No change in Europe’s financial crisis

No place like home Dorothy was right: “There’s no place like home!” And USDA Rural Development concurs.

But as extraordinary as Dorothy’s Wizard-of-Oz situation was, it was almost easier for her to find her way home than it is today for some to buy a home.

Most everyone knows Dorothy’s tale, but what’s your “no place like home” story?

COLLEEN Maybe you live in CALLAHAN the same home where you grew up.

Maybe you inherited your residence.

Or, as is common in agricultural employment, your home might be considered part of your compensation.

What did it take for you to own your first home? Or, have you never bought or built a home?

And what, you may wonder, do these questions have to do with Rural Development?

The answer is: Housing for rural communities is the largest of all of our Rural Development programs. In fact, our housing programs have played a vital role in ensuring that rural residents enjoy the same homeownership opportunities that are available to urban and suburban residents since 1949.

Over the past three years, we have assisted more than 15,000 rural Illinois households with the purchase of their homes.

Here are some of those stories we highlighted last month to celebrate National Homeownership Month: Bill Dawdy returned to Illinois following 14 years of military service in Kosovo, Bosnia, and Iraq. After being away from his family for six of the last 10 years, owning a home was a top priority. He and his wife, Kelly, and sons, Jakob and Colton, now own a home in Bushnell, where they are close to family and Bill’s work at NTN Bower in Macomb.

Kim Paulinski and her daughter lived with her parents. At age 30 she said, “Rural Development gave me the opportunity of homeownership without financial assistance from family or friends. The sense of freedom is a great feeling.” And daugh-

ter, Kaylee, is excited about growing her own tomatoes on the deck, even though she doesn’t like to eat them — yet.

Mary MacLeod, Gerald, and their two children lived in a two-bedroom, inaccessible apartment for 10 years.

The children had to play in the parking lot, and Mary’s physical limitations made it difficult to move around the apartment.

Their new Carbondale home has an open floor plan with no stairs and the children have their own bedrooms and a yard with a white picket fence.

Javier and Damaris Hernandez and their two young girls were paying $600 per month to live in an apartment that did not provide adequate heat. They now own an attractive, well-insulated, three-bedroom home with an attached garage and nicely landscaped yard in Rochelle. Their mortgage is around $700 per month.

Those are just a few of the recent examples in which Rural Development has played a vital role in expanding and preserving the foundation for a stronger and more prosperous rural America and a stronger overall economy.

USDA Rural Development has two home loan programs available to buyers looking for homes in communities with less than 20,000 people.

We can guarantee fixed-rate loans with their lender or offer a direct loan for those who qualify.

Neither program requires a down payment or mortgage insurance premiums, while offering the security of a long-term loan with a fixed interest rate at record low levels.

There are many positive statistics about homeownership and the economic activity that it generates. But what can’t be measured is the pride one feels and the level of determination that exists in maintaining one’s own home.

Illinois USDA Rural Development is proud to be a partner with nearly 5,000 rural home buyers, every year.

Dorothy was right: “There’s no place like home!”

Colleen Callahan is the state director of USDA Rural Development. Her e-mail address is Colleen.Callahan@il.usda.gov.

The debt crisis in Europe seems to defy resolution.

Each new stumble down the economic path is met with new resolutions by the heavily indebted to stop spending more than they have, followed shortly thereafter by an emergency weekend summit, followed by an BRUCE announceFINKS ment that briefly makes the financial markets feel better.

However, upon further examination of the actual terms of the announcement, the financial markets come to realize that nothing has really changed. All that has happened is that a new bandage has been placed over the gaping wound in the hope that the bleeding will stop and the patient will get better without having to actually go through the pain of a permanent solution that will last past the next weekend.

The latest case-in-point is the bailout of the banks in Spain announced on June 10. Spain claims it doesn’t have a sovereign debt problem like the rest of the PIIGS (Portugal, Italy, Ireland, Greece, and Spain). Its problem is one of highly leveraged banks that financed a housing boom based on the cheap credit that was thrown their way with the introduction of the euro.

Spain got so caught up in the housing boom that construction spending was more than 16 percent of gross domestic product (GDP) in 2007. For comparison, residential construction spending in the U.S. was about 5 percent of GDP in 2007.

As seems to be the case with central bankers these days, Spain’s central bank saw the housing bubble as no cause for alarm and continued with loose monetary policies to encourage the continuation of the housing boom.

However, prices of residences began to decline and

soon many homeowners owed more on their houses than they were worth. Banks began to get houses back and the inventory of unsold homes began to climb, very similar to the situation in the U.S., except prices rose faster and fell harder in Spain.

As the housing decline continued, banks began to realize that the mortgages they held as assets on their balance sheets were not worth anywhere close to what value the banks were placing on them. If the banks reduced the value of the loans, it would wipe out their capital.

From a sovereign debt perspective, Spain is not quite as indebted as other Eurozone countries. But once you count the bank debt and personal debt, Spain is very heavily indebted.

The program announced recently is not a loan to the Spanish government, but a direct loan to the Spanish banks.

As such, it does not appear to have all the strings attached that the loans to Ireland, Portugal, and Greece have had.

Shortly after the announcement, no one was sure whether the European Union (EU) will use the European Financial Stability Fund (EFSF) or European Stability Mechanism (ESM) to finance the bailout. It does make a difference which fund is used because ESM funds will get a preference over the sovereign debt of that country in the event of a default.

In other words, these new borrowings will be in line ahead of Spanish government debt in the event of default, which will make Spanish debt less attractive to potential buyers.

When the news was first announced, European financial markets gained and Spanish bond yields declined from 6.4 to about 6 percent.

However, as market participants began to really look at the proposal, they began to see the flaws. Spanish yields on June 12 had climbed back to about 6.71 percent.

Just to add more fuel to the fire, Cyprus also has asked the European Central Bank for a bailout of around $125 billion, making it the fifth country out of the 17-member EU to ask for one.

Since the bailout for Spain appears more lenient than those given to Ireland, Portugal, and Greece, one has to think those other countries will be calling the European Central Bank to renegotiate their loan terms.

Meanwhile, U.S. banks are bracing after a round of ratings downgrades from Moody’s, S&P, and Fitch.

Moody’s reduced the ratings for 17 large banks June and it is estimated that the downgrades could cost these banks billons of dollars in extra interest expense.

The downgrades also will make it more difficult for the money market industry to find investments to put in their money market funds.

Most funds are required to own investments that are rated A-1/P-1. After downgrades, some of the banks’ paper will be rated A-2/P-2, which will disqualify it for inclusion in money market funds.

I know it seems impossible, but with fewer investments to choose from, money market funds will be vying for a shrinking universe of investments from which to choose and yields may fall from current levels.

The really sad news in all of this is that we believe interest rates can stay low for at least a year, possibly longer. Economies all over the world are so weak that there will be little in the way of inflationary pressures.

We also expect continued monetary stimulus from the Federal Reserve and most other central banks around the world in an effort to stimulate economies and ward off deflation.

I’m afraid this means that we’re going to get more of what we’ve already seen for the past several years.

Bruce Finks is vice president for investments with Country Financial.

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