Farmweek june 17 2013

THE BARGE INDUSTRY is proposing a hike in barge fuel taxes as insurance against costly future shutdowns on the Mississippi River system. .................................................4

PRAIRIE FARMS, which was established in 1938 when Illinois Farm Bureau opened a cream-buying station in Carlinville, this year marks its 75th anniversary. ............8

ILLINOIS FARM BUREAU this month will conduct an Animal Care Study Tour to Europe to examine sow housing and other issues there. ....................................10

Senate clears farm bill 66-27; House battle next?

Monday, June 17, 2013

BY MARTIN ROSS FarmWeek

ments aimed at crop insurance” in Senate debate, Moore underlined AFBF’s “biggest loss” — Senate crop insurance “means testing.”

An amendment sponsored by Springfield Democrat Dick Durbin and Sen. Thomas Coburn (R-Okla.) would reduce by 15 percent the level of federal crop premium support for farmers with annual adjusted gross income (AGI) above $750,000.

Durbin stated the move would save $1 billion-plus over the next 10 years. However, given the “vast majority of producers” below that AGI level, Moore suggested savings could be closer to “a few million” a year, and argued the proposal may have been more “symbolic” than fiscally meaningful.

“Mr. Coburn just doesn’t like subsidies, period,” Moore suggested. “Durbin feels the rich farmers ought to pay more.”

The $750,000 AGI threshold likely would affect fewer than 2 percent of Illinois farms, University of Illinois ag economist Gary Schnitkey estimated.

However, many other Illinois farmers could be impacted by eligibility requirements and the income verification paperwork associated with the threshold, especially if multiple entities are involved in the operation, Schnitkey told FarmWeek.

Meanwhile, at last week’s Fuel Ethanol Workshop in St. Louis, Brian Jennings, executive vice president of the American Coalition for Ethanol, cited what he deemed “a tale of two farm bills — for our industry.”

He said the Senate bill is “very good for biofuels,” with mandatory funding for ag energy programs and continued grant availability for E85 or multiple fuel choice “blender pump” installation.

Renewable Fuels Association CEO Bob Dinneen applauded Senate-proposed funding for the Rural Energy for America Program (REAP), which helps farmers and small businesses with renewable energy development and energy efficiency improvements, and existing bioenergy initiatives, even if “it’s not a lot of money.”

House proposals provide no mandatory energy funding and “expressly prohibit” USDA blender pump support, Jennings said. Amid concerns over food stamp cuts and dairy program proposals and potential for “a lot of crazy amendments” on the House floor, he questioned “how they’re going to get the votes on the floor to move this thing.”

“There doesn’t seem to be a clear path to passage as yet in the House, although (House Speaker

John) Boehner (R-Ohio) has indicated that he’s planning to bring the bill to the floor, which is certainly a step in the right direction,” Dinneen told FarmWeek.

“We hope in (House-Senate)

FarmWeek on the web: FarmWeekNow.com

conference that the energy title is preserved and that Congress recognizes the important role of energy markets for farmers.”

See Farm bill, page 2

Late planting takes a toll

USDA lowers corn yield, raises crop price estimates

BY DANIEL GRANT FarmWeek

Late planting and weather issues already took a bite out of corn yields, based on USDA estimates.

The Ag Department last week in its monthly supply/demand report lowered its estimate for the average U.S. corn yield by 1.5 bushels (to 156.5 bushels per acre) and cut its corn production estimate by 135 million bushels (to 14 billion bushels).

“Delayed completion of planting raised the likelihood that seasonally warmer temperatures and drier conditions in late July will adversely affect pollination and kernel set in a larger share of this year’s crop,” USDA noted in its report.

U.S. farmers as of the first of last week still had about 22 million acres of soybeans and 5 million acres of corn left to plant, according to Randy Martinson, market analyst with Progressive Ag. Farmers in Illinois as of the first of last week had planted 96 percent of the corn crop (2 percent behind the five-year average) and 62 percent of beans (18 percent off the average pace).

“It was a little early for USDA to be cutting corn yields,” Martinson said during a teleconference hosted by the Minneapolis Grain Exchange. “But I think yield (estimates) will continue to decline” as the season progresses.

USDA on June 28 will release its highly anticipated crop acreage and grain stocks reports. Martinson predicted USDA

LINING IT UP

Periodicals: Time Valued

As farm bill debate moves to the House, the future of farm risk management and federal support for ag-based renewable development appears uncertain.

With a minimum of fanfare and a sole amendment (dealing with rural broadband) defeated, the Senate easily approved a new farm bill plan 66-27. The plan would replace farm direct payments with a new revenue safety net program and maintains a modified target price program.

Attention now turns to the House, where more aggressive ag budget proposals could affect the timetable for passage.

The Senate plan, “hits all the marks sufficiently we’d indicated we supported,” American Farm Bureau Federation (AFBF) policy director Dale Moore told FarmWeek.

Illinois Farm Bureau President Philip Nelson applauded the Senate package, which achieves federal budget savings (a projected $17.9 billion over 10 years), protects revenue, and streamlines conservation programs. Nelson hailed support for “enhanced” Senate crop insurance provisions “essential for effective risk management and a stable food supply.”

But while “we managed to fend off a number of amend-

Two sections Volume 41, No. 24

See Crop, page 3

Alan Dodds, right, Illinois Farm Bureau chief financial officer, prepares to putt last week during the 17th annual IFB/IAA Foundation annual golf tournament. His teammates in the golf scramble looking on are, left to right, Chris Hausman, IFB District 12 director; Ben Dodds (Alan’s son), and Steve Hosselton, IFB District 14 direct o r. A t o t a l o f 1 8 7 g o l f e r s and 40 volunteers took part in the fundraiser for Illinois Agriculture in the Classroom.

(Photo by Cyndi Cook)

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

Quick Takes

GOVERNMENT

FarmWeek Page 2 Monday, June 17, 2013

REFERENDUM ON REFORM? — The Illinois Business Immigration Coalition (IBIC) last week touted a new survey of Illinois voters that indicates healthy support for current congressional immigration reform proposals.

In a poll sponsored by the Alliance for Citizenship, Partnership for a New American Economy, and Republicans for Immigration Reform, 78 percent of voters said they strongly or somewhat supported bipartisan reform legislation. Seventyfive percent said they strongly or somewhat support a bill that includes a “tough but fair path to citizenship.�

And 87 percent deemed it very or somewhat important that the U.S. “fix� the immigration system this year. Of those polled, 28 percent were identified as Republicans, 41 percent as Democrats, and 32 percent as “independents.�

DEATH TAX REPEAL MOVE — Sen. John Thune (R-S.D.) is expected to introduce The Death Tax Repeal Act of 2013 on Wednesday.

The bill would repeal the estate tax, maintain stepped-up basis, and make permanent the 35 percent maximum gift tax rate and $5 million lifetime gift tax exemption indexed for inflation.

Far m Bureau supports per manent estate tax repeal and Thune’s legislation. Congress last year approved a per manent $5-million-perindividual/$10-million-per-couple estate tax exemption.

LINKS TO EDUCATION — The annual Illinois Agricultural Leadership Foundation 2013 Golf Classic will be Monday, June 24, at the Pontiac Elks Country Club in Pontiac. Sponsored by The Mosaic Co., the event features an 18-hole scramble golf tournament or a tour of the historic David Davis Mansion for non-g olfers.

Events are open to everyone.

Members of the Illinois Agricultural Leadership Program Class of 2014 will raffle a Gator CX Utility Vehicle donated by John Deere. Three “Hole-In-One� contests are scheduled, including one hole featuring a Case IH Farmall Compact Tractor donated by Case IH as the prize.

For information or to register, visit {agleadership.org/2013-ialf-golf-classic-registration/} Registration closes June 21. Proceeds from the golf outing and tour support the foundation and its educational program.

(ISSN0197-6680) Vol. 41 No. 24

June 17, 2013

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

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Flider: FDA extends blending of aflatoxin-contaminated corn

BY KAY SHIPMAN FarmWeek

Seven Illinois grain companies may continue blending aflatoxin-contaminated corn until Sept. 1, following the recent approval by the Food and Drug Administration (FDA).

The Illinois Department of Agriculture (IDOA) Bob Flider sought and recently received a second extension of the blending authority, Illinois Agriculture Director Bob Flider reported to the Illinois Agricultural Legislative Roundtable last week in Charleston. “We are still dealing with aflatoxin (as a result of last

Farm bill

year’s drought). We are working with the grain industry,�

Flider said.

FDA first approved blending of aflatoxin-contaminated corn in Illinois on Sept. 24.

That authority was to stop on Dec. 31, but IDOA sought and received an extension through June 30.

IDOA sought the most recent extension for the seven companies that originally were certified for blending.

Blending is not permitted without FDA approval. The federal agency determines rules and guidelines for allowable levels of aflatoxin in livestock feed.

Flider told Roundtable members the blending program has worked. “Our ag product inspection bureau has done a great job,� he added.

The FDA sought and

Continued from page 1 AFBF’s Moore observed that “we seem to be facing tougher fights on biofuels issues� in the House.

The petroleum sector “has done a pretty good job of continuing efforts to demonize biofuels, particularly advanced biofuels,� and “ultra-conservative� lawmakers appear inclined to pare back biofuels incentives in search of new budget savings, he said.

At the same time, Moore anticipates heated debate over House-proposed cuts in food stamp funding. The Senate deflected proposals to slash

received assurances there would be no co-mingling of the 2012 and 2013 crops, and extension of the blending authority through Sept. 1 would make that possible, according to IDOA. IDOA shared the results of an informal grain industry survey with FDA officials.

The grain company respondents reported the blending program allowed them to provide their farmer customers with a viable market.

With the blending program, the grain companies were able to market a high percentage of grain while keeping the aflatoxin levels below 20 parts per billion (ppb), IDOA reported. Under FDA regulation, 20 ppb is the highest level of aflatoxin permitted in feed for immature animals and dairy cattle.

crop insurance funding to restore $4 billion in Supplemental Nutrition Assistance Program (SNAP) cuts, and House lawmakers have proposed up to $20 billion in food stamp savings.

Boehner last year was unable to muster a necessary 218 farm bill votes amid complaints that a proposed $16 billion in cuts either was too high or not high enough, Moore noted. “If ($20 billion) is where we end up at, we may be hard-pressed to get more than 30 Democrats to vote for it,� he said.

We ar are are

Your FIR Your RST ST Ch Choic ce for R Ru ura ura al Ho ome Loa oa ans. an

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

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AG ROUNDTABLE

Page 3 Monday, June 17, 2013 FarmWeek

Ag Roundtable gains perspective of EIU’s renewable energy

BY KAY SHIPMAN FarmWeek

Renewable energy does more than supply heat for Eastern Illinois University’s (EIU) campus in Charleston. It also is fueling new degree programs, research, and a future incubator for new ideas, EIU President William Perry told the Illinois Agricultural Legislative Roundtable last week.

Since 2011, EIU has heated its campus with two biomass gasifiers that burn a mixture of wood chips and natural gas. Roundtable members toured the brick structure and also saw the two solar panels currently being tested by the university.

The advent of the new heating plant sparked student and faculty

UPPER CRUST

interest in renewable energ y and will result in bachelor’s and master’s degree programs in renewable energ y being added to the university, according to Perry.

In addition, EIU is planning to build a new Center for Clean Energy Research and Education beside its energy plant. The building will house faculty and student biomass gasification research and serve as a laboratory and demonstration site for new technologies.

Part of the new center will include an “energy incubator” where entrepreneurs will be able to pursue innovative ideas that may develop into commercial applications, Perry explained.

“We want to build an energy economy in Charleston,” he said.

Rosie Duffy, left, a longtime member and volunteer of the Livingston County Farm Bureau, received a special rolling pin from Susan Moore, IAA Foundation director, during the banquet/live auction held last week after the Foundation’s annual golf outing. Rosie for years has shown her talent by baking and donating the pies for the live auction at the outing. The sale of her pies, which benefits Illinois Agriculture in the Classroom, last week surpassed $20,000. Top bidders for Rosie’s pies this year were Lake County Farm Bureau ($350), St. Clair County Farm Bureau ($310), and Stan Blunier and Dennis Haab ($300). (Photo by Ken Kashian)

Crop

Continued from page 1 will trim its corn planting estimate by 4 million acres.

Crop prices last week scuffled initially after the release of the supply/demand report as traders anticipated a larger decline in ending stocks.

USDA left its soy estimates unchanged (bean yields are projected to average 44.5 bushels per acre, up 4.9 bushels from last year) and sliced 55 million and 11 million bushels, respectively, off its corn and wheat ending stocks estimates.

The overall U.S. wheat supply was raised 38 million bushels. But that was more than offset by a 50-million-bushel increase of wheat exports.

“That was somewhat friendly,” Martinson said of the boost in wheat exports. “The (boost) in new-crop wheat production was somewhat of a surprise due to dry conditions in the Southern Plains and the fact that many farmers are having trouble planting the (spring) crop in the Northern Plains.”

Overall, the tight crop supplies were projected to be friendly to the market. USDA raised its 2013/14 season average price estimates by a dime for corn (to a range of $4.40 to $5.20 per bushel) and wheat ($6.25 to $7.55) and by a quarter for beans ($9.75 to $11.25).

The tight crop supplies in the U.S. also were projected to lead to increased crop imports. USDA last week raised imports by 25 million bushels for corn and 5 million bushels for beans.

Chad Weber, front in blue shirt, senior engineer with Eastern Illinois University’s Renewable Energy Center, describes the plant’s solar panels to members of the Illinois Agricultural Legislative Roundtable last week. (Photo by Kay Shipman)

State needs, relies on mix of energy sources Illinois uses a mix of energy sources for its electricity, heat, and transportation, and a state energy expert expects that mixture to continue into the future.

Tom Wolf, executive director of the Illinois Chamber of Commerce’s Energy Council, presented an overview of the state’s energy sources and challenges to the Illinois Agricultural Legislative Roundtable last week in Charleston.

He noted Illinois is an anomaly because it relies heavily (48 percent) on nuclear power for electricity, compared to the rest of the nation.

Coal contributes 40 percent of the state’s electricity with the remainder divided among natural gas, wind, and other sources.

The majority of the state’s transportation energy comes from domestic oil, 55 percent. Of the imported oil, 27 percent comes from Canada.

Natural gas provides most of the energy for heat in Illinois (80 percent). Electricity contributes

18 percent, followed by propane. All the natural gas is produced domestically, Wolf pointed out.

With recent passage of Illinois hydraulic fracturing legislation and its potential approval by the governor, natural gas production could change in Illinois, especially in Southern Illinois’ New Albany Shale region.

“I’m excited for the potential for economic opportunity. There’s opportunity for landowners and local economies,” Wolf said. “Now it’s up to the shale — not every shale is created equal.”

U.S. natural gas production has undergone major changes over the last several years.

“Five years ago we (the U.S.) were going to import natural gas, and now we’re going to export it,” Wolf said. “No one knows where energy prices will be in the future because of the changes.

“People are doing exciting things in energy,” Wolf concluded. — Kay Shipman

Brazilian interest underlines trade need

BY MARTIN ROSS FarmWeek

As U.S. farmers keep an eye on South American soybean production, South American producers “are looking at us,” warns Illinois Farm Bureau economist Mike Doherty.

With attractive corn prices, the impact of the 2012 drought, and a young South American farm populace with a “go-get’em attitude,” Brazil appears “a country to watch for international corn sales,” said Doherty, who traveled recently to Brazil.

He thus sees U.S. trade involvement “more important than ever” in protecting market share.

Doherty recently offered observations on the global market and biofuels at a Brazilian workshop sponsored by AgRural, a market consulting firm that works with farmers with acreages in Brazil, Bolivia, and Paraguay.

Those producers aggressively seek input on commodity marketing strategies, a grasp of Chicago futures contracts, and “a good understanding about the role some aspects of Mid-

west ag production play in their marketing year,” he said.

And that’s the rub. Doherty reported the southern Brazilian state of Parana — the location of the AgRural workshop — has “maxed out” production of soybeans and other existing crops, and growers are eyeing new crop directions.

In the aftermath of the 2012 drought, “the jostling for position in the international market is stronger than ever,” Doherty said. World economic growth, Chinese demand, and interconnecting U.S./Brazilian biofuels market dynamics also could fuel a Brazilian corn push, he said.

“Analysis over the last year has highlighted that our future is a more competitive picture for the international corn market,” Doherty said. “Our higher prices over time have created more production overseas.

“We need to keep much more focused. Farmers have heard that trade message many times before, but it’s the truth.”

AgRural analyst Daniele Siqueira, who reports on Midwest farming for her clients, will

address Brazilian agriculture at the July 31 IFB Commodities Conference in Normal.

Brazil also is concerned about a hyper-competitive marketplace. The Brazilian National Confederation of Industry warned recently that “Brazil runs the risk of losing more space in its export markets if it doesn’t fully address the global challenge of looking for new partnerships in world trade.”

A new International Maize Alliance, backed by the National Corn Growers Association and the Brazilian Association of Corn Producers, offers the added opportunity for alliances that could reduce overall market volatility and address common grower concerns, Doherty said.

“As agriculture becomes more embattled, growers in Parana and the American grower share many of the same difficulties in maintaining representation with their governments and consumers,” he said.

“Brazilian producers are dealing very much with environmental/land stewardship issues.”

TRANSPORTATION

FarmWeek Page 4 Monday, June 17, 2013

Barge tax hike down payment on cheaper shipping?

BY MARTIN ROSS FarmWeek

In today’s economy, if someone asks for a tax increase, there’s usually a compelling reason.

In the case of the barge industry and its customers, a proposed hike in barge fuel taxes is viewed as a down payment on reduced river freight rates and insurance against costly shutdowns on the Mississippi River system.

Given momentum generated by recent Senate Water Resources Development Act (WRDA) passage, American Farm Bureau Federation (AFBF) policy specialist Andrew Walmsley sees indications a U.S. House WRDA package could be ready for floor debate before Congress recesses in August.

The Senate bucked the fuel tax proposal to the House, where some lawmakers have pledged to oppose any tax hikes.

For farmers, a 6-cent-pergallon increase in barge “fees” might mean a half-cent more cost in per-bushel corn shipping costs or slightly more in terms of barging beans to the Gulf, according to AFBF econ-

omist Veronica Nigh.

But a fuel tax boost would replenish the Inland Waterways Trust Fund — industry matching funds needed to spur backlogged federal lock improvements — and thus help eliminate locking delays, emergency repairs, and other freight cost factors.

That’s in addition to the cost of shifting to truck or rail grain normally barged to the Gulf.

Nigh calculated transportation costs from Champaign to the Gulf from 2010 through 2012. During the fourth quarter peak of ag shipping, trucking a bushel of corn from Champaign to the Gulf cost an average $2.30-$2.62 ($2.47-$2.81 per bushel for beans) over that period, while rail cost 81 to 95 cents for corn and 90 cents to $1.08 for soybeans.

During the same period, barge transportation cost an average 63 to 74 cents for corn and 68 to 80 cents for soybeans.

“You can make the 6-cent or 9-cent-per-gallon investment, and as a major (river) user, it’s an impact we’re willing to bear,” Nigh told FarmWeek.

“If we were to put this cargo on truck or rail, the cost would be significantly higher. Twenty

cents (per bushel added cost) can make a difference, but $2 is pretty shocking.”

Walmsley, who met with House Transportation and Infrastructure Committee

staffers last week, said he sees another key challenge in House debate: the House’s ban on “earmarks” — spending for specific regional or local projects.

He said he sees some parti-

san “unrest” over how the Senate sidestepped the earmarks issue by granting greater U.S. Army Corps of Engineers (i.e., “administration”) discretion in prioritizing projects.

Soy centric summit focuses on investment

Illinois is “a very productive state” in terms of soybean exports, noted Informa Economics analyst Ken Ericksen. But, at the same time, the American Society of Civil Engineers gives Illinois a D-plus in transportation infrastructure.

Experts from agribusiness, the logistics industry, and the shipping sector schooled farmers and marketers in possible solutions to that disconnect at last week’s Illinois Soybean Association Export Transportation Summit in Joliet.

Informa CEO Bruce Scherr noted global forces are positioning commodities as a key “assets class” and exports as a force in strengthening U.S. agriculture. But the U.S. is “woefully behind the curve” in global infrastructure investment, he said.

That’s in contrast to China, which has beefed up high-speed rail capabilities and deep sea ports, invested in Panama Canal expansion, and eyed collaborating on a Nicaragua canal or a dry “rail bridge” across Columbia.

Where the U.S. largely plans a business quarter ahead, “a quarter in China is 25 years,” commodity trader and logistics specialist Bill Dunavant III told summit participants.

“We are a spending nation — we are not an investing nation,” Soy Transportation Coalition

Executive Director Mike Steenhoek said. “We need to recapture that investment mentality we had decades ago.”

Archer Daniels Midland Co. Transportation President Scott Fredericksen said he is open to private/public transportation partnerships, a focus of Senate Water Resources Development Act (WRDA) proposals to improve navigational capabilities, but stressed “we can’t act individually ... alone.”

Until WRDA negotiators can identify solid new federal revenue or cost-cutting measures, Steenhoek said he questions the prospect of the bill providing a waterways system that includes “modern, well-maintained locks and dams.”

Summit spectator Ross Korves, a Chicago economic consultant, sees three key ag infrastructure issues: improving local roads and bridges, upgrading Midwest barge capabilities, and creating an overall system that helps farmers capitalize on Panama Canal expansion.

But Korves deemed systemic, integrated, multimodal improvements vital. While Brazil has invested heavily in river/port upgrades, internal rural surface transportation there continues to be “horrendous,” he told FarmWeek.

— Martin Ross

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COMMODITIES

Page 5 Monday, June 17, 2013 FarmWeek

Illinois wheat yield projected to rise despite scab issues

BY DANIEL GRANT FarmWeek

USDA last week raised the wheat yield forecast in Illinois by 1 bushel per acre.

Wheat growers in the state in coming weeks are projected to harvest a crop with an average yield of 64 bushels per acre, up 1 bushel from the May forecast and from last year’s actual yield.

If realized, wheat production in the state would total 51.2 million bushels, up 26 percent from a year ago. Farmers this season expect to harvest 800,000 acres, 155,000 more than last year.

Some fields, however, likely will suffer a yield hit due to the outbreak of Fusarium head blight (wheat scab).

“I’m certain there are patches that are quite bad and others that are not so bad,” Kevin Black, GROWMARK insect/plant disease technical manager, told FarmWeek. “In some areas it looks like it could

be as bad as it’s ever been.”

Farmers who anticipated the disease and applied fungicides likely will see less damage to their fields.

“Wheat that is blooming in the middle of wet, humid weather (is at the highest risk for scab),” Black said.

“This is a disease that before it shows up, it’s already there,” he continued. “Once the heads are bleaching, it’s too late to do anything.”

Carl Bradley, University of Illinois plant pathologist, believes scab infections in fields south of Interstate 70 generally range from low to moderate while fields in Central Illinois have moderate to high incidence of scab.

Black last week said there may be some fields in Northern Illinois, along the Interstate 80 corridor, where farmers still have time to apply fungicide.

The winter wheat crop as of the first of last week was 98 percent headed, and 39 percent of the

Biotech wheat ripples likely slight for Illinois soft red?

BY MARTIN ROSS FarmWeek

While the furor over discovery of unauthorized biotech wheat in a Northwestern U.S. field likely will prove short-lived, it’s cast a cloud over U.S. prospects in a potentially competitive 2013 world wheat market.

So says Illinois Farm Bureau Senior Commodities Director Tamara Nelsen, who noted USDA is continuing a “tightly closed” investigation of Monsanto Roundup Ready wheat detected in a soft white wheat field in Oregon.

USDA’s Animal and Plant Health Inspection Service (APHIS) confirmed last week that its testing in surrounding fields so far has shown negative results.

Following the Oregon disFarmWeekNow.com covery, Japan halted imports For more information about the of western white and feed unauthorized biotech wheat in wheat, South Korean millers a Northwestern U.S. field, visit suspended purchase of U.S. FarmWeekNow.com. white wheat, and the Taiwan Flour Mills Association asked the U.S. to label wheat shipments by state of origin. But as of last week, APHIS reported having “no information that (biotech) wheat is in commerce.”

While the Oregon finding should have no direct bearing on Illinois’ soft red wheat crop, Nelsen and AgriVisor analysts examined the possible near-term market ripples for soft red.

Nelsen said she anticipates a healthy world wheat crop, and with U.S. wheat typically priced higher than supplies from other exporters, the Oregon discovery is “one more reason” for a potential importer to source cheaper South American wheat.

“That could affect all varieties of wheat,” Nelsen told FarmWeek. “It could affect slightly the perception of U.S. wheat ‘quality’ among some countries that probably aren’t premium buyers, anyway.

“But I think our premium buyer markets like Japan are going to be pretty content to reinitiate exports. Long-term, I don’t think there will be any impact on the market.”

Monsanto has made a Roundup Ready wheat-specific test available to international governments to help validate U.S. shipments.

The U.S. Food and Drug Administration (FDA) has confirmed the food and feed safety of Roundup Ready wheat.

The Oregon discovery was the first report of the herbicide-tolerant trait being found in the 500 million acres of U.S. wheat grown since Monsanto discontinued its biotech wheat program nine years ago.

crop statewide was turning yellow.

Most wheat growers who have scab-infected fields at this point only can make adjustments to their combines to deal with the disease.

Growers with moderate and

high levels of scab should consider making adjustments to their combines that would allow low test-weight, scabby kernels to be blown out of the back, according to Bradley.

Research at Ohio State Uni-

AND THE ANSWER IS ...

versity suggested setting the combine’s fan speed between 1,375 and 1,475 revolutions per minute and shutter opening at 90 millimeters resulted in the lowest discounts for scab-infected wheat at elevators and mills.

Illinois Farm Bureau Young Leader Committee District 7 representative Ryan Voorhees, left, quizzes Kristy Burford of Bethany, a member of the Okaw Valley FFA Chapter, last week at the Illinois State FFA Convention in Springfield. IFB Young Leader Committee District 8 representative Keith Mellert holds a prize of animal crackers for Burford for correct answers to agriculture questions. IFB offered FFA members information about programs, services, and scholarships in the exhibit hall over the three-day convention. (Photo by Kay Shipman)

FarmWeek Page 6 Monday, June 17, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had excellent growing conditions last week. We did, however, have severe weather blow through the county on Wednesday. Minimal tree damage and scattered power outages resulted. Rainfall totals were from zero in the far northwest corner of the county to 1 inch in other areas. We had 0.9 of an inch of welcome rain. We also have had some warmer temperatures. That has really helped everything “perk up.” First-cutting hay is in full swing, as well as sidedressing nitrogen, and herbicide and fungicide spraying. Lots of the earliest cornfields are canopying and there are reports of an early rootworm hatch. Have a good and safe week.

Pete Tekampe, Grayslake, Lake County: Another great week in Lake County. We got 0.7 of an inch of rain on Wednesday evening that really stretched out the corn and gave the early corn a dark green color. Early corn is just short of knee high. The later corn still has a yellow tint to it.

Most of the beans are planted, and germination looks very good. Some hay has been cut, but not much good hay was baled because of the showers. Winter wheat is all headed out and looks OK. Calling for rain this week.

Leroy Getz, Savanna, Carroll County: Rain on Sunday, June 9, of 0.5 of an inch. On Wednesday evening, a severe storm and tornado hit the northwestern corner of Illinois, dumping another 0.6 of an inch of rain.

It destroyed some buildings and one home, hospitalizing the owner. With much tree damage in a narrow path, this tornado passed high over our farm and dropped insulation and other debris. Corn is growing fast, with early fields 24 to 30 inches tall. I do not know of any prevented plantings in this county. Very little hay was made last week. I baled some round bales, losing one of them. It required 75 feet of cable and 20 feet of chain to retrieve it.

Ryan Frieders, Waterman, DeKalb County: It was a challenging week on the farm.

Soybean planting was completed late Tuesday night ahead of a predicted storm. Post-spraying of corn was also being done. Wednesday morning we sprayed 18-inch tall corn near Shabbona that was obliterated that night by hail larger than golf balls and a confirmed tornado with 95-plus mph winds. Many structures, trees, and power lines were damaged from high winds. Hail caused damage on all emerged fields and we got 3.5 inches of rain in a period of a couple hours. The day after the storm was the sunniest, nicest day of the summer so far.

Larry Hummel, Dixon, Lee County: The crops are looking pretty good in this corner of Illinois. The majority of the corn and beans were planted by May 15 and most everything was in the ground by May 20.

Despite one field of soybeans that is on the light side on population and some Roundup Ready corn that the leaves got burned pretty good when we sprayed it, things look good. Of course, the Roundup representative blamed it on weather conditions.

No surprise there.

Joe Zumwalt, Warsaw, Hancock County: Thank you Mother Nature for bringing us some much-needed warmer and drier weather. I’ll sure take the sunshine we had Friday. The corn is improving and ranges from emerging (replant) to nearly V9. Area soybeans range from still planting to two trifoliates. Lots of beans originally planted May 23 through May 25 have been replanted.

Ninety percent of all crops are in. Weeds and insects have been less of a problem than the nutrient deficiency and compaction. Lots of hay is being baled and sprayers are rolling. All in all, crops continue to look pretty decent, given 12 inches of rain in May.

Ken Reinhardt, Seaton, Mercer County: A decent week for fieldwork, as rains pretty much missed the area. Much corn and soybean planting and replanting was accomplished. Crops planted right before Memorial Day suffered the worst stand losses.

Ron Moore, Roseville, Warren County: We finally finished planting soybeans last week. We received only 0.3 of an inch of rain. It is hard to believe, but we could use a nice shower right now. Some of the beans are having a hard time emerging. We replanted about 80 acres of soybeans in multiple fields where the rain from two weeks ago ponded and the seed rotted in the ground. Post-spraying of corn is in full swing and should be done this week. We also had some liquid N applied to a cornfield that looked pretty yellow. We will see how spoon feeding N to the corn crop works this year. No post spraying of soybeans yet; they are still too small for now. We did get hay mowed and baled last week with only 0.1 of an inch of rain on it.

My pastures sure look different from last year. The grass is taller than the pickup hood. I may have to bale some of it to fully utilize the grass.

Jacob Streitmatter, Princeville, Peoria County: Finally a break in the wet weather that allowed many soybeans to be pounded into muddy ground.

Rain was forecast all week, so everybody decided to plant beans, but of course, it did not rain. Ideally it would have been better to wait, but it is June. As I was told, “You have to throw precision planting out the window in June!” There also has been some replant of corn and soybeans in the area. Some of the corn looks good, but there is alot that is way behind and stressed and looks like crap.

Tim Green, Wyoming, Stark County: It was a pleasant week. The east side of the county was a little drier than the west side. Pretty much all of the beans were planted, but there are still a few to do. The little bit of corn and beans that were planted before the rain needs to be replanted because of washed out and wet spots. Farmers are trying to figure out if that is a good idea. A little disease is starting to show up in the corn. I heard of one farmer having to replant 200 acres the other day. He said it looked good on Friday and on Sunday it was dead, so keep an eye out and scout your fields.

Mark Kerber, Chatsworth, Livingston County: It was a very busy, dry week. Our area has seen much replanting of corn and soybeans — corn mostly due to ponding and soybeans due to crusting. We spotted in 500 acres of beans and only 10 acres of corn.

Actually, corn stands look very good and the color green has returned to the plants. One can see a lot of seed being shuffled around between dealers and district reps. The heavy rain and damaging hail last week just missed Livingston County to the north, giving us a chance to get caught up, although rain was predicted for the weekend. Field activity, besides replanting includes nitrogen sidedressing and corn spraying. The hay and waterways are getting cut.

Roadside mowing has been delayed. I see the wheat is just starting to turn brown.

Markets are waiting for summer weather for price direction. With the late planting, are we setting ourselves for a year like 2009? Bring on the cooler weather with timely rains.

Brian Schaumburg, Chenoa, McLean County: Almost a full week without measurable rainfall helped farmers get the last of the crops planted and replanted. Post-spraying of corn nears completion. No insect problems, yet. Crop appearance improved but doubtless yield potential has been damaged even though the crop report did not reflect that. Corn, $6.78, new-crop, $5.13; soybeans, $15.40, new-crop, $12.70; wheat, $6.45.

Ron Haase, Gilman, Iroquois County: Replanting was the major activity in corn and soybean fields over the past week. Firstplanting of some soybean fields also took place. Corn is now taking five days to emerge with soybeans taking four to five days.

Storms passed through late on Wednesday. We received 0.55 to 1.1 inches of rain. Fortunately, we were able to finish the replanting of our corn just as the rain arrived. We had to replant 12 percent of our acres of corn. Sidedressing of nitrogen has been another major activity in cornfields.

With the replanting done, we can now switch our tractor over from the planter to the sidedress applicator. Farmers have also been mowing roadsides and spraying post emergence herbicides in cornfields. Some corn has reached the V8 growth stage. Some soybean fields are at the V3 growth stage. The local closing bids for June 13 were: nearby corn, $6.74; new-crop corn, $5.15; nearby soybeans, $15.30; new-crop soybeans, $12.79.

Steve Ayers, Champaign, Champaign County: We finished planting soybeans Saturday night, June 8, and expected rain Sunday evening, but that was one of the missed rain chances for a surprisingly dry week. Beans jumped out of the ground within five days, but we still need a few raindrops for beans that are in dry soil. Corn and beans are growing well. Our USDA eastern crop reporting district led the state with planting progress at 100 percent corn planted and 98 percent emerged and 88 percent of soybeans planted with 72 percent emerged.

Ninety-seven percent of the region’s topsoil has adequate moisture with 3 percent surplus. All of the subsoil has adequate moisture. Piatt County Fair in Cerro Gordo kicks off Tuesday, so hope to see you at the fair.

Wilfred Dittmer, Quincy, Adams County: The weather continues its grip on the farm this week: if not rain, then wind.

Rainfall collected in our gauge totaled only 0.4 of an inch on Sunday, June 9. On Wednesday, the winds were so strong that the flag on our flagpole stood straight out. The winds dried things out though so the planters could finish corn planting and proceed on to the beans. Early corn looks good and growing, and later plantings will be up soon. Not much hay down yet, as planting takes priority. Also plenty of mowing of field roadways and yards yet.

Carrie Winkelmann, Tallula, Menard County: We had a dry week, so a lot of soybeans were planted in our area, as well as a lot of corn being spot-planted into fields. No major pest problems to speak of, yet. Corn is ranging from V7 to V4 (not counting replant). Some earlierplanted soybeans are putting out the second trifoliate. Post herbicide application has started in our earliest-planted soybeans. The peppers I planted in the garden on Sunday June 9) aren’t putting up with the hot conditions very well, and this has been reflected to some degree on the crops that have been babied by the cool weather. Glad to see some sun and heat units, though.

Tom Ritter, Blue Mound, Macon County: Finally a good string of dry days, which allowed farmers to get a lot of the planting wrapped up. Corn is more than 95 percent complete and soybeans are well above 80 percent complete. There are a few isolated areas of wet spots that will be planted some time, weather permitting. For the most part, farmers would be glad to have a little shower to help with the seed-to-soil contact. Overall, corn that was planted early continues to grow. There is quite a bit of stunting in some of the lower or compacted areas. Soybeans planted early also are looking good. Most of the corn and beans planted in the last week are just starting to emerge. Farmers are now able to focus on matters other than planting, such as will there be an early frost, how much nitrogen have we lost, and were there really that many acres of corn planted? Come on, USDA!

Page 7 Monday, June 17, 2013 FarmWeek

CROPWATCHERS Todd Easton, Charleston, Coles County: It was a very busy week. Considering what the corn has had to grow through, things could be worse, but yellow spots and slow growing uneven stands are easy to find. These conditions have made sidedressing nitrogen more popular than I ever remember. While applicators and sprayers do their work, soybean planters roll across remaining fields as fast as they are dry enough to work. Many fields are up and in the VE-VC stages, but just as many are preemergence or not planted. Significant workstopping rainfall seems to have finally missed this part of the state for now. Another front forecast for the weekend and may have halted field work.

Jimmy Ayers, New City, Sangamon County: We received 0.2 of an inch of rain for the week, a change from what we have had in the past. A lot of work was done — replanting corn, first-time planting of corn, and first-time planting of beans. Corn and beans that were put in early look fairly decent, but the cornfields are uneven with quite a bit of yellow. Several put up hay. It was the first really dry week we have had, and we actually tied our recordhigh temperature in Springfield. The Sangamon County Fair starts Wednesday.

Doug Uphoff, Shelbyville, Shelby County: In my part of Shelby County, most beans are planted or being finished up.

Cornfields have a lot of holes or poor emergence due to the rains we had May 24-25. In May, we had more than 9 inches of rain, which followed the 8.6 inches we had in April. We had more rain in May this year than we had last year from March through July. Soybean planting has been fast, but field conditions really stunk unless you had all rolling ground. Our low, flat drummer soils worked like silly putty. Only it wasn’t silly. We will look at some corn that may need to be replanted. Not sure it isn’t too late, but a guy has to try. Figured this year started hard so maybe it will get easier.

Compared to last year, which started well but ended up being a wreck for yields. Heard of a bad accident this week involving a planter being transported and a driver that wasn’t paying attention. Beware and be safe.

David Schaal, St. Peter, Fayette County: It has been a busy productive week around here.

Soybeans are going in the ground at a rapid pace. Weather has been warm and humid. Some of the bean stands left after the 4-inch rains are on the thin side; therefore, some fields have been ripped up and replanted, some spotted in, and some are just being left alone. A little corn is being planted yet, corn is being sidedressed, there is planting and replanting of soybeans, spraying, and haying. Corn is starting to regain its color and seems to be growing. With the warm, windy weather last week, wheat in the area has made a big change. I suspect harvest is 10 days to two weeks off. Have a good week.

Jeff Guilander, Jerseyville, Jersey County: After a hiccup last Sunday, June 9, (0.6 of an inch of rain in 15 minutes) the rest of the week was a little more manageable. A lot of the drowned out spots in the corn have been spotted in and bean planting is getting back on track. The beans that were planted before the rain could use another to help them get break through the crust. Rainfall amounts for the planting season are around 20-plus inches, which makes you wonder about nitrogen and weed control, but that is a problem for next week.

Enjoy the weather while it lasts.

Dan Meinhart, Montrose, Jasper County: The area finally got a break from all the rain and by mid-week, farmers were able to return to the fields. A lot of corn and beans were being planted and replanted. Other activities include sidedressing of corn, spraying post chemicals on corn and beans, and applying some burn down. Wednesday was a very hot humid day. The crops and the lawns really took off and grew. The wheat is beginning to turn, but harvest will be later than usual. Some hay has been made.

Dave Hankammer, Millstadt, St. Clair County: We didn’t receive any severe storms in the area, but we did have some showers, which brought about 0.5 of an inch of rain at the beginning of the week. Daytime temperatures reached into the low-90s for a couple days last week, but it has been a cool June overall with lows in the 60s and highs in low 80s. Corn has been struggling with the cool, wet soil judging by the yellow shades of green many of the plants are expressing. With the warmer temps, the root system is starting to reach the nitrogen in the soil, changing the plant leaves to a healthier green appearance. The soybean planting pace picked up as fields continue to dry out. Emergence has been good and beans are about 3 inches tall. Hay making has been a challenge for many farmers.

Several fields have been rained on during the curing period, which spoiled the hay.

Some farmers have baled or chopped the spoiled hay just to remove it from the fields and allow the subsequent growth to come through.

Dean Shields, Murphysboro, Jackson County: We had anywhere from 0.3 to 0.8 of an inch of rain on Sunday night and Monday morning (June 9 and 10). That didn’t hold us off too long. Corn is pretty well planted.

Some of the low ground is still flooded. As we say down in the river bottom ground area, we are all caught up to the water line. In every part of Jackson County, farmers seem to be finishing up the soybeans, too. A lot of spraying of corn and beans, and the wheat crop is coming on pretty strong. It looks like we could start wheat harvest this week. A few people have already started. We will see how the yields turn out.

Kevin Raber, Browns, Wabash County: Very little field activity this past week. There are beans left to plant and drowned out spots to replant, but most fields need a little more drying. Wheat looks good, but needs warmer and drier weather to help it along.

Ken Taake, Ullin, Pulaski County: It was a busy week here in deep Southern Illinois. After a few showers moved through Sunday night, June 9, and Monday, June 10, we were back in the fields on Tuesday. It was a very busy week. We finished sidedressing corn. We had to replant some corn in a few bottoms that had just too much water. Corn stands on the hills look good. The bottoms are just a little bit spotty because of too much water. We also finished planting soybeans, except for a little 15-acre bottom that is too wet to plant. Our earlier soybean stands on the hills look really good. Wheat is getting real close to harvest. I haven’t seen any cut yet, but I know there are a lot of people anxious to get started on it.

Please take time to be careful this week.

FFA elects state officers

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

Illinois FFA members elected a new slate of state officers last week during the State FFA Convention in Springfield.

The officers are: President Sam Detwiler, 19, Flanagan-Cornell FFA; Vice President Rachel Hawk, 18, Mercer County FFA; Secretary Cody Carman, 18, Sullivan FFA; Treasurer Joe Heavner, 19, Valmeyer FFA; and Reporter August Schetter, 18, Southwestern FFA.

DAIRY

FarmWeek Page 8 Monday, June 17, 2013

Farm family adjusts to maintain dairy tradition

BY DANIEL GRANT FarmWeek

There have been many changes in the dairy industry the past 75 years.

But the goal for producers remains the same: maintain a healthy herd and produce a quality product.

The Armour family of Carlinville adapted to changes in the dairy industry over the years and has excelled due in part to a working relationship with Prairie Farms for three generations.

FarmWeekNow.com

Additional information about P r a i r i e F a r m s D a i r y ’s 7 5 t h anniversar y is available at FarmWeekNow.com.

Prairie Farms, which was established in 1938 when Illinois Farm Bureau opened a cream-buying station in Carlinville, this year marks its 75th anniversary. There currently are more than 700 member farms in Prairie Farms, according to the website {prairiefarms.com}.

“Our family has shipped

milk to Prairie Farms since the days when the milk was in cans,” said Todd Armour, who runs Armour Farms with his wife, Martha, and parents, Wendell and Geneva. “It’s been an extremely well-run coop over the years.”

The Armours started selling milk off their farm in the 1930s, according to Wendell, whose father, Otto, started the operation.

“In those days, we fed skim milk to the hogs, then the excess cream we took into town,” Wendell said.

The Armours over the years updated their farm from using pail milkers to can coolers to a bulk milk tank. They built what was then a unique eight-stall carousel parlor in 1976.

Todd and Martha, a veteri-

narian, worked off the farm for a number of years before returning to run the family dairy full time in 1996.

“We thought (working long hours away from home) was no way to raise our kids, so we both resigned from our positions on the same day and moved to the house I grew up in,” Todd said.

Todd and Martha have four children, Mitch, Lydia, Ava, and Grayson.

The transition to the farm was a challenge at first, but the Armours said it was well worth it.

“When I came back to the farm, I thought ‘How much can change?’” Todd said. “We got back, and everything about the industry had changed (from feed strategies to automation). It was almost like having to learn it all over.”

Todd and Martha added fans and sprinklers over the feed bunks along with variable-speed drives for vacuum pumps and a heat-recovery system.

“We’ve done a lot of green things, energy efficiency type

Todd Armour and his daughter, Ava, feed a dairy calf on the family’s farm near Carlinville. Armour Farms for three generations has provided milk to Prairie Farms Dairy, which this year celebrates its 75th anniversary. (Photo by Mark Kempf)

issues,” said Todd, whose family milks between 90 and 100 cows per day. “Dairy farming is harder than you can imagine. The hours are long, but it’s gratifying work.”

With so much going on at the farm, the Armours continue to value their relationship with Prairie Farms.

“It’s our connection to the consumer,” Todd said. “It’s our ability to get our product into the hands of people in cities that are hundreds of miles away.”

Last year’s drought was a challenge for livestock producers, but the Armours, who grow their own feed, weathered it without the need to thin their herd.

“We chopped a lot more corn silage (about 15 to 16 month’s worth) last harvest than we normally do, so we’ll go into fall with a good amount,” Todd added. “I think probably an average year is all we can expect (for milk returns).”

Aid approved for diaster counties

The federal government last week approved aid to help local governments in the remaining 15 disaster-declared counties recover eligible flood-related expenses, Gov. Pat Quinn announced.

Local governments may apply to be reimbursed for up to 75 percent of eligible flood-related expenses.

The counties are: Calhoun, Carroll, Cass, Greene, Hancock, Lawrence, McDonough, Monroe, Morgan, Peoria, Schuyler, Scott, Shelby, Tazewell and Will.

The 24 Illinois counties previously approved for federal aid are: Adams, Bureau, Clark, Crawford, DuPage, Fulton, Grundy, Henderson, Kendall, Knox, Lake, LaSalle, Livingston, Marshall, Mason, McHenry, Mercer, Ogle, Pike, Putnam, Rock Island, Stark, Warren, and Woodford. Total flood-related expenses for state and local governments topped $70 million.

“We will work closely with the federal government to help expedite reimbursement to these local governments,” said Illinois Emergency Management Agency (IEMA) Director Jonathon Monken.

IEMA and the Federal Emergency Management Agency (FEMA) last week began scheduling briefings for local government officials to explain the application process.

Tuesday: • Ag weather with Chesapeake Meteorology • Mike Trainor, producer from Wing, Ill. • Mike Doherty, Illinois Farm Bureau senior economist • Jason Bunting, president, Livingston County Farm Bureau Wednesday: • Charlyn Fargo, bureau chief of county fairs and horse racing • Rita Frazer, live from the Food Dialogue at Kendall

College in Chicago Thursday: • Ron Moore, at large director, Illinois Soybean Association • Brian McGill, marketing and member development supervisor of IAA Credit Union • Jim Bower of Bower Trading • Friday: • Sara Wyant, Agri-Pulse publisher • President Philip Nelson, Illinois Farm Bureau • Story time with Alan Jarand To find a radio station near you that carries the RFD Radio Network, go to FarmWeeknow.com, click on “Radio,” then click on “Affiliates.”

FROM THE COUNTIES

Page 9 Monday, June 17, 2013 FarmWeek

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DAMS — The Young Farmers will sponsor an outing to a Quincy Gems baseball game at 6:30 p.m. Wednesday, June 26, at QU Stadium.

Free tickets are available at the Farm Bureau office.

OONE — Farm Bureau will co-sponsor a charity pull at 6:30 p.m. Saturday at the Boone County Fairgrounds. Cost is $10. All proceeds will benefit the Farm Bureau Foundation. Call Ed Kasper at 208-0117 or go to {BSTPOnline.org} for more information.

HRISTIAN — Farm Bureau will host a grain handling safety day from 8:30 a.m. to 3 p.m. Saturday at the Farm Bureau office. Call the Farm Bureau office at 8242940 by Thursday for reservations or more information.

LAY — Prime Timers will sponsor a bus trip to Amish country in Arthur and the Little Theatre on the Square in Sullivan from 8 a.m. to 8 p.m. Wednesday, July 10.

Cost is $70 for members and $75 for non-members. Call 665-3300 by July 1 for reservations or more information.

UPAGE — As part of its centennial observance, Farm Bureau will sponsor a “Touch-a-Tractor” and dairy promotion event from noon to 4 p.m. Saturday on the Farm Bureau grounds. Area Chambers of Commerce, Farm Bureau members, and the public may attend. Ice cream will be served to the first 350 attendees.

ASPER — Farm Bureau will sell soft-serve ice cream Sunday through Saturday, June 29, at the Jasper County Fair. During the Gospel Sing on Sunday, June 23, coupons for free ice

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cream will be available.

ASALLE — Farm Bureau Foundation will sponsor a golf outing/benefit at noon Friday, June 28, at Senica’s Oak Ridge Golf Course in LaSalle. Cost is $75. Call the Farm Bureau office at 4330371 to register or for more information.

• Farm Bureau is selling discounted theme park tickets.

Call the Farm Bureau office at 433-0371 for more information.

EE — Lee and Bureau County Farm Bureaus will host a golf outing to benefit Agriculture in the Classroom beginning at 9 a.m. Friday, June 28, at Hunters Ridge Golf Course in Princeton. Cost is $200 for basic registration, $225 for super registration, and $250 for premium registration.

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

• Farm Bureau’s 100th Anniversary Committee will meet at 7 p.m. Tuesday at the Farm Bureau office. Members interested in joining may attend.

CLEAN — Farm Bureau will offer discounted tickets for Centennial Day at the McLean County Fair on Friday, Aug. 2. Call the Farm Bureau office at 6636497 by July 15 to purchase tickets.

ONTGOMERY — Prime Timers will sponsor a bus trip to Fairmount Park Horse Race Track in Collinsville Tuesday, Aug. 6.

Cost is $32. Call the Farm Bureau office at 532-6171 by July 1 to register or for more information.

GLE — Farm Bureau will host a market outlook workshop at 7 p.m.

Wednesday at the Dixon Com-

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HAY FOR THE TEACHERS

Illinois Farm Bureau Region 3 Manager Dee Dee Gellerman and her husband, Doug, (in background) show a flake of hay to teachers participating in a Summer Ag Institute on their farm last week. The institute was held for Logan, Mason, Menard, and Sangamon counties. Each county hosted a one-day tour and program for the teachers. Around the state, teachers may earn college credits by completing institutes held in several counties over the summer. (Photo by Renee Deuth, manager of Mason and Menard Farm Bureaus)

fort Inn. Steve Johnson, Iowa State University, will be the speaker. Call the Farm Bureau office at 732-2231 to register.

• Farm Bureau will sponsor a Master Grain Agreement information meeting at 7 p.m.

Monday, July 15, at the Farm Bureau office. Jerry Quick, retired Illinois Farm Bureau senior counsel, will be the speaker. Call the Farm Bureau office at 732-2231 to register.

• Ogle and Carroll County Farm Bureaus will co-sponsor a bus trip to the John Deere Harvester Works and Pavilion Exhibit in Moline July 22. The bus will depart from Milledgeville and Polo. Cost is $25. Call the Farm Bureau office at 732-2231 by July 8 to register.

• Farm Bureau will host a defensive driving course Tuesday, July 23, and Wednesday, July 24, at the Farm Bureau office. Doug Sommer, retired Country Financial field educator, will present the program to Country insured members age 55 and over. Cost is $10. Call the Farm Bureau office to register.

ICHLAND — The Young Leader Commit-

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tee will sponsor a trap shoot on Saturday, Aug. 17, at the County Line Gun Club in Noble. To register go to the Farm Bureau office or {richlandcountyfarmbureau.com}.

• The Young Leader Committee will sponsor a half marathon and 5K race Saturday, Oct. 19. To register, go to the Farm Bureau office, the website {richlandcountyfarmbureau.com}, or like the Farm Bureau on Facebook.

ANGAMON — The Young Leaders will sponsor a Kiddie Pedal Pull at 2 p.m.

Thursday at the Sangamon County Fair. Registration will begin at 1 p.m.

• Farm Bureau will host a Farmer/Patron Appreciation Day from 4 to 7 p.m. Sunday at the Sangamon County Fair. Call the Farm Bureau office at 7535200 for tickets. Tickets include all-day entry to the fairgrounds.

TEPHENSON — Farm Bureau will sponsor a blood drive from 6:30 to 11 a.m. Saturday during the Ag Breakfast at the Freeport fairgrounds. All donors will receive a free breakfast, and first-time donors will receive a free season pass to the

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Stephenson County Fair.

• The Foundation will sponsor a silent auction to benefit local scholarships from 6 to 10:30 a.m. Saturday during the Ag Breakfast at the fairgrounds.

• Farm Bureau will host a Stroke Detection Plus health screening from 9 a.m. to 4:30 p.m. Wednesday, July 31, at the Farm Bureau office. Members will receive a discount. Call 877732-8258 to schedule an appointment.

ILL — Farm Bureau will co-sponsor a grain handling safety program from 9 a.m. to 3 p.m. Thursday, July 25, at the Farm Bureau auditorium.

Call the county Extension office at 727-9296 to register by July 16.

• Farm Bureau will host a family fun night beginning at 4:30 Thursday, July 18, on the Farm Bureau grounds. Cost is $10 for adult members (ages 13 and over) and $4 for children.

Call the Farm Bureau office at 727-4811 for tickets by July 11.

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

PROFITABILITY

FarmWeek Page 10 Monday, June 17, 2013

Price of soil compaction to be paid all season

There are different types of soil compaction. However, they have this in common: The worst compaction does not occur with heavily saturated soils but rather with soils that are at field capacity.

Field capacity is Kevin Black the point at which the soil will hold water against the force of gravity even though the excess water has drained out. At this point, some of the pore spaces are filled with air instead of water.

The excess water may be gone, but there is still enough moisture to serve as a lubricant between soil particles, allowing them to slide and collapse against each other.

As this happens, natural pore spaces also collapse, eliminating oxygen. As a result, crop roots will not grow or function normally in oxygen-deprived soil.

With compacted soils, we’re really dealing with two major issues: 1. Compaction alters the natural soil structure, and increases the physical strength of the soil, preventing crop root systems from fully exploring to take up nutrients

BY KEVIN BLACK

and water. Compacted soil often will hold surface ponds of water early in the season, but it can become dry and impenetrable to water later in the season.

2. Compaction eliminates air (oxygen) from the soil, so crop roots cannot take up nutrients or water, even when they’re surrounded by it.

So what does this have to

BY MARTIN ROSS FarmWeek

Big Oil’s assault on the federal Renewable Fuel Standard (RFS2) is intensifying at a point of potential vulnerability for the biofuels sector, industry leaders warned last week.

“We are at war,” declared Tom Bryan, president of industry clearinghouse BBI International at BBI’s Fuel Ethanol Workshop in St. Louis. “For the first time in this industry, we could lose the war.”

Current congressional attacks on the RFS2 focus largely on next-generation cellulosic biofuels requirements that Renewable Fuel Association President Bob Dinneen said could displace another third of each barrel of imported oil. That’s a source of worry for petroleum interests “who saw the success of the grain ethanol industry,” he said.

The ability to move more corn ethanol into the market in

Feeder pig prices reported to USDA* Range Per Head $27.65-$48.00 NA

Weighted Ave. Price $36.73 NA

This Week Last Week 101,246 94,234 *Eastern Corn Belt prices picked up at seller’s farm Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $100.40 $94.30 $6.10 $ 74.30 $69.78 $4.51

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

This week $124.24 $123.00

Prev. week $123.92 NA

the soils appeared to be firm enough to support traffic.

Consequences of soil compaction are now visible in many fields in the form of uneven crop height and, in some cases, yellowing (chlorosis). Some of this is simply related to excessive soil moisture, but evidence of soil compaction is all around us.

Compaction can be shown by digging up chunks of soil and attempting to break them up in your hands. Depending on timeliness of rainfall, soil compaction could carry a high price tag this year.

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

Biofuels leaders: Big Oil ‘war’ escalating across industry

M A R K E T FA C T S Weight 10-12 lbs.

40 lbs.

do with this season? Rain delays resulted in many farmers re-entering fields a little early. It was inevitable that some field activity would occur when the soil surface looked dry but was highly subject to compaction a few inches deep.

No-till fields also were subject to compaction because the residue layer slowed drying, yet

Change $0.32 NA

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 $136.14 $133.84 $2.30

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 122-156 lbs. for 105.56-135 $/cwt. (wtd. ave. 116.70), 177-194 lbs. for 112-115 $/cwt. (wtd. ave. 114.05)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 6/6/2013 3.1 24.4 6.4 5/30/2013 4.5 16.8 11.7 Last year 16.4 22.4 18.4 Season total 1270.7 19.7 545.7 Previous season total 1182.8 22.4 1241.8 USDA projected total 1350 1025 750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

the form of E15 (15 percent ethanol gasoline) also is tied to the RFS2. Bryan warned gasoline suppliers “will stop blending (ethanol) almost immediately” without the RFS2.

Winning the war comes down to biofuels education in statehouses and Congress and grassroots support, Bryan insisted. “We have a bigger political constituency than oil does,” Tom Buis, CEO of biofuels group Growth Energy, told FarmWeek. “But we don’t have as deep a pockets.”

A recent decision by Florida lawmakers to repeal state ethanol fuel requirements illustrates the outcome “when we sit on the sidelines,” American Coalition for Ethanol Executive Vice President Brian Jennings said.

RFS2 requirements will override Florida’s decision, and the action will merely send “a negative signal to anyone who wants to invest in a state that has more sunshine, more

Energy CEO Tom Buis displays a flex-fuel blender pump — the potential key to adding new ethanol blends such as E15 to the U.S. fuel mix. (Photo by Martin Ross)

water, and a longer growing season to produce (biofuels) feedstocks,” Buis said.

Mark Niederschulte, whose INEOS Bio plans to launch an eastern Florida ag waste-to-biofuels operation, said he was “very disappointed” by the vote.

Biofuels leaders were generally positive toward the House

Energy and Commerce Committee’s ongoing RFS2 inputreview process, which recently yielded the latest in a series of “white papers” charting the RFS2’s potential role in “the energy landscape in 2013.”

Buis called committee review “the fairest process to date.” Dinneen, who blasted “biased” earlier Science and Oversight Committee hearings, said he does not feel the Energy Committee is engaged in “a rush to judgment.”

High pump prices, increasing reliance on what Buis deemed “more environmentally challenging,” costly petroleum sources (Canadian tar sands, fracking, Gulf exploration), and demand for ever-higher fuel octane levels should bolster biofuels support, biofuels leaders suggested.

“There’s very little wrong with the RFS2 that can’t be fixed with what’s right about the RFS2,” Dinneen told FarmWeek.

Hog farmers want choice of production practices

BY DANIEL GRANT FarmWeek Pork producers this month at the World Pork Expo in Des Moines made no bones about their belief that the effectiveness of various sow housing and animal care systems varies from farm to farm.

Most pork producers, therefore, want to continue to have a choice when it comes to sow housing systems and medical treatment for their animals.

The use of gestation stalls and antibiotics was a hot topic at the Expo. Europe in the 1990s restricted the use of antibiotics and its ban on gestation stalls went into effect the first of this year.

Meanwhile, numerous food companies in the U.S. unveiled plans, promoted by animal activist groups, calling for the elimination of gestation stalls on U.S. farms. The Food and Drug Administration (FDA) also is considering implementing restrictions on antibiotics.

“We understand our customers have a lot of questions about how we raise pigs,” said Bill Luckey, a pork producer from Nebraska who is on the National Pork Producers Council (NPPC) board’s Science and Technology Committee. “We’re working closely with our partners in food service and retail to assure them we treat our animals well and our product is safe.

“Restricting the use of antibiotics likely will have a negative impact on animal health without positively impacting public health,” he noted.

Liz Wagstrom, NPPC chief veterinarian, said the pork industry is working with FDA to ensure any changes or restrictions to antibiotic labels don’t hurt the industry or threaten herd health.

“FDA maintains disease prevention is critical

to animal health,” Wagstrom told FarmWeek.

She said she believes any restrictions on the use of antibiotics in the swine industry would affect growth promotion compounds that also are used in human medicine.

Possible changes to antibiotics labels in the U.S. could occur within the next three years.

Farmers likely will need a veterinary prescription to treat animals in the future.

“This move to veterinary oversight is going to be huge,” Wagstrom said. “Farmers will be unable to do anything (related to administering medicine) without a vet.”

Illinois Farm Bureau this month will conduct an Animal Care Study Tour in Europe to examine issues such as sow housing and the use of antibiotics in livestock production.

“I’d really like to have the option (of sow housing systems),” Pam Janssen, a Woodford County pork producer and tour participant, previously told FarmWeek. “Not every farm is the same. What works on one won’t always work on another.”

Rick Berman of Berman and Co., which oversees the consumer advocate group {HumaneWatch.org}, urged pork producers at World Pork Expo to fight for their rights to choose housing systems.

“Let’s draw the line right here,” Berman said.

“Retailers for a long time have only been getting one side of the story (from animal activist groups that have an ultimate goal of eliminating livestock production).”

He suggested farmers refer to gestation stalls as “individual maternity pens” so consumers better understand the housing systems.

PROFITABILITY

Page 11 Monday, June 17, 2013 FarmWeek

CASH STRATEGIST

Key reports coming at month’s end

With 95 percent of the corn planted, and what’s expected to be an 85-plus percent pace for soybeans on today’s report, it looks like the “planting rally” has effectively come to an end.

From a new-crop perspective, that suggests the next thing that might give prices a lift would be a summer weather rally.

For old-crop prices, the USDA grain stocks and acreage reports coming on June 28 are important, especially the former. But they could just as easily be bearish as bullish; hence they may be more of a “wild card” than a sustainable, driving force such as a weather event. As much as anything, they might have more effect on the timing of highs or lows, depending on the market.

The trade also may be prone to dismissing the planted acreage forecasts because of this year’s slow planting pace.

At the beginning of June, 9 percent of the corn had not been planted, and USDA was starting to take its report surveys.

The plight of those unplanted corn acres, along with the 43 percent of the soybeans yet to be planted, will leave traders arguing about the planting numbers until the August report — at a minimum.

And the uncertainty may persist until traders see the first Farm Service Agency preliminary report on program acres in mid-September.

That’s the first time the industry will get a peek at the initial

prevent-plant numbers. From those, traders will start to forecast the size of this year’s prevent-plant acreage.

Still, the quarterly grain stocks numbers will be the data of most interest to the trade. You’ll remember the corn trade was shocked by the March quarterly corn stocks number. It was 300 million bushels larger than expected, causing corn prices to lose $1 in just two to three days.

The outcome of the coming report is anybody’s guess.

The persistence of high cash basis levels has led many to think corn supplies are tighter than the last USDA stocks number implies. But there are a number of other variables that could be impacting the cash corn market, the slow pace of planting among them.

We only know that with the old-crop supply relatively tight using current statistics, a stocks number confirming the March forecast or one rejecting it could have significant short-term implications for corn prices.

The same goes for the soybean market, too, not because of the March report, but because of the persistent export demand for soybean meal and ideas that the crush pace is still ahead of the current USDA forecast.

The current 125-millionbushel ending stocks forecast looks like a level the USDA is assuming to be a minimum pipeline inventory. Because of that, it may take only a 30-million-to-40-million-bushel miss on the stocks report either way to cause a significant price reaction. A number too low could cause processors to chase the market, while one too high could cause them to quickly back away.

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Corn Strategy

ü2012 crop: Ongoing weakness of old-crop prices compared to the new crop deters our interest in holding old-crop inventory other than “gambling stocks,” and we aren’t sure even those are worth holding. ü2013 crop: T he close below $5.35 on December futures indicated the shortterm trend has turned down.

Use rallies on December futures for catch-up sales. vF u n d a m e n t a l s : L a s t week’s 95 percent planting number went a long way toward mitigating concern about enough acres getting planted.

Even though the moisture is a problem in some locations, the spring rains largely have eased drought concerns for now.

Even with a yield somewhat less than USDA’s latest 156.5bushel forecast, it’s difficult to build a friendly supply/demand forecast. Old-crop prices soon may start to feel the competition of the South American c r o p s e n t e r i n g t h e wo r l d pipeline, especially from Brazil.

Some is destined to come into the southeastern U.S.

Cents per bu.

Soybean Strategy

ü2012 crop: July futures continue to get rejected at $15.50, suggesting the move up has stalled. Use rallies to price o l d c r o p, e ve n “ g a m b l i n g stocks.” ü2013 crop: Steadily, this crop is getting planted. The short-term trend hasn’t turned down yet, but $13.25-$13.50 is looking like it will be difficult to surpass. Use rallies to make catch-up sales. vFundamentals: Even though weather remains an issue, planting continues to be completed at a steady pace.

Accelerating wheat harvest and persistent high new-crop prices should generate more interest in double-crop plantings. The pace of old-crop exports has dropped to a consistently slow pace, one warranting USDA’s reduction in expectations.

New-crop expor t sales are accumulating as fast as they did last year, but the larger South American crops suggest our shipping campaign should get off to a slow start like it did two years ago.

Wheat Strategy

ü2012 crop: The shortterm has turned more negative, with seasonal pressure starting to influence the market. Use rallies to make needed catch-up sales. ü2013 crop: Use rallies above $6.90 on Chicago July futures to make catch-up sales.

If you plan to sell wheat off the combine, be more aggressive making additional sales on rallies.

Prices are vulnerable to additional weakness; Chicago July could drop to $6.64 or lower. vF u n d a m e n t a l s : T h e recent decline in the whea t

market could be linked to a bearish USDA supply/demand report. The trade was surprised with the larger winter wheat production estimate, 1.51 billion bushels vs. trade expectations for 1.457 billion.

The crop has struggled with drought since last fall. Both old- and new-crop wheat ending stocks were projected to be larger than expected. The spring wheat crop continues to struggle to get planted, as the weekly report indicting only 87 percent of the crop had been planted vs. the 5year average of 96 percent.

PERSPECTIVES

FarmWeek Page 12 Monday, June 17, 2013

FULL CIRCLE : Bucket calves led state fair queen to future career It is county fair season, and I couldn’t be more excited!

I spent my youth exhibiting livestock and general projects at our county fair and the State Fair. This summer as Miss Illinois County Fair, I will be visiting county fairs across the state and hosting both the Illinois and Du Quoin State Fairs. I’m eager to relive memories from my younger years when I was AMELIA MARTENS an exhibitor.

When I was in 4-H, June was guest columnist the busiest month of the year. My brothers and I spent many hours out in the barns, walking our hogs, washing them, shaving them, and making sure they were in prime shape for the fair.

We also could be found leading our bucket calves around the barnyard — although they sometimes dragged us around — when we were smaller. And then there were always about a dozen “general projects” for us to tackle, which we never thought to start until June hit and we had about two weeks to finish everything.

My best memories were made in the years that I spent at the fairgrounds. Hanging out with all of my friends in the barns, working in the 4-H food stand, and enduring hours of interviews on my projects ranging from soils to breads, visual arts, childcare, horticulture, and nearly

everything in between.

It was through these projects that I discovered where my interests were.

Showing my bucket calf was my favorite 4-H project, and where I developed a love for public speaking.

I spent five summers in that show ring with Fudge, then Milkshake, Cocoa, Cherry, and Oreo. I had a knack for naming each calf after the food he/she looked like. Each summer I had to get in front of the audience and tell about my bucket calf on the microphone.

I remember how nervous I was that very first year. My answers were short; I used my fair share of “ums;” and I couldn’t let go of that microphone quick enough. But with each passing summer, I enjoyed getting in front of everyone a little more, and my answers became longer and more detailed. The judge had to cut me off because I would have kept going.

When I was 15, I decided that I was probably too old for the bucket calf project. I took up journalism and communications, and refined my writing and communicating skills.

Pairing with my interest in agriculture and an FFA record book in agricultural communications, I decided to major in agricultural communications. I just completed my degree in agricultural communications this spring at the University of Illinois.

Should I pay extra on my student loan or invest in a Roth IRA? Build up an emergency savings fund or pay off my credit card debt? Pay off my mortgage or put more money in my 401(k) retirement plan?

In one form or another, the trending question lately has been, “Is it better to pay down debt or build up savings and investments?”

Like many real-life questions, the answer is not black and white. The answer is likely to be based on both objective KATHY information as well as SWEEDLER personal values.

Here are two questions I suggest asking yourself: “How can I get the most out of my dollars, and what’s important to me?”

First, how can you get the most out of your dollar? We tend to be on the lookout for the “best buy” for our dollar. We know that if we spend our dollars on an item, such as a movie ticket, that dollar will not be available to buy dessert.

The opportunity cost of the movie ticket is the loss of buying dessert. In this example, a dollar is worth a dollar because the choice is, “Do I go to the movies tonight or buy dessert tonight?”

Both options take place now.

However, it gets more complex when the choices have longer-term impacts and the dollar we have now

may change in value over time. For example, dollars used to buy mutual fund shares today may increase in value over time.

Let’s assume the mutual fund earns 10 percent over the next year. If you use $100 today to buy mutual fund shares, at the end of the year you would have $110. This is a $10 gain for your dollars.

But if you use your $100 to buy mutual fund shares, then you cannot use these dollars to do other things, such as pay down credit card debt.

Let’s assume you have a $100 credit card balance with an annual percentage rate (APR) of 23 percent. If this credit card balance is not paid, at the end of the year you would owe $123. (I’m assuming no minimum balance required or fees to keep this example simple.)

However, if you used your $100 to pay off the credit card balance, you will save $23 in interest. You have essentially earned a return on your money (a gain) of $23 dollars.

When considering an investment with a return of 10 percent or paying off a debt with an APR of 23 percent, you get more from your dollar by paying down the debt.

When trying to decide how to get the most from your dollar over time, first look at the interest rates charged compared to the possible return on investment.

For some questions, the tax code makes this comparison more compli-

A young Amelia Martens shows one of her prize-winning bucket calves when she was a youngster in the fair showring. (Photo courtesy Amelia Martens)

County fairs provide youth with experiences that allow them to explore potential career fields before they reach high school and way before they are even thinking about college.

As I attend many county fairs this summer, I hope to visit with youth about their experiences at the fair and how these experiences are shaping their decisions on what they want to be when they grow up.

As you visit your county fair and the state fair this summer, I encourage you to have conversations with exhibitors

Amelia Martens

and ask them what they’ve learned from their projects. How has it influenced what they want to do after their showing years are over?

County fairs are such an important part of an Illinois’ summer, and I look forward to seeing you there!

Amelia Martens, Orion, is Miss Illinois County Fair 2013. She is the daughter of Henry County Farm Bureau members Patrick and Annette Martens.

When it comes to your money, should you pay down debt or invest?

they do not want to carry debt; this may influence their decision. Others value having emergency savings. A saving fund can provide financial security, and help avoid new debt when unexpected expenses arise.

Life and to some extent investing is unpredictable. People’s comfort with life’s unpredictability and their risk tolerance for the up-and-down of investment returns also influence their financial decisions.

When faced with a decision about what to do with your money, consider how you can get the most from your dollar. Also, think about your values and what is important to you. Think about your long-term goals as well as your immediate needs.

With thoughtful consideration, you will decide wisely.

cated. For example, if you have a mortgage on your home and you itemize deductions on your income taxes, the mortgage interest deduction reduces the amount of taxes you pay.

Thus, a home mortgage loan at 5 percent interest may actually cost you less than 5 percent; the amount will depend on your tax bracket.

You also may have a tax advantage if you invest money in mutual fund through an employer-sponsored retirement plan such as a 401(k). If this applies to you, then your return on your dollars invested may be more than the increase in the value of the mutual fund.

Keep in mind your tax situation when thinking about the opportunity costs of your dollar.

Next, ask yourself, “What’s important?”

Our personal finances also are influenced by our values and personalities.

Some people feel very strongly that

Kathy Sweedler is a consumer economics educator with the University of Illinois Extension.

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