Farmweek june 24 2013

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ILLINOIS FARM BUREAU has launched an updated brand and new tagline — “Farm. Family. Food.” to tell members and the public more about the organization. ........................2

A RESEARCHER TOLD those attending a Trees Forever meeting that scenes with trees and landscaping receive a higher rating than those without. .........3

ILLINOIS WHEAT harvest got off to a slow start last week, but the state’s farmers are projecte d t o h a r v e s t 8 0 0 , 0 0 0 a c r e s, 155,000 more than last year. .......4

A service of

®

House farm bill failure raises concerns about future Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, June 24, 2013

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

A long-awaited House farm bill failed last week because of political lockdown largely over food stamp spending, leaving farm state lawmakers wondering how they might entice the 20-some votes reportedly needed for a second go. After days of haggling over a variety of proposed amendments, the House rejected 234-195, the proposed Federal Agriculture Reform and Risk Management (FARRM) Act. Taylorville Republican House Ag Committee member Rodney Davis said he was “completely upset and flabbergasted” by the vote. He labeled it “one more win for the polarization and politics of Washington.” The measure would have saved $40 billion over a 10-year period, but while some Republicans felt deeper cuts should be made, many Democrats balked at a proposed $2 billion in proposed annual Supplemental Nutrition Assistance Program (SNAP or food stamp) spending. The next step is to negotiate the terms necessary “to get the 20-something votes we need to pass it,” Illinois Farm Bureau National Legislative Director Adam Nielsen maintained. “I hope that at some point in time our legislators can get past the bickering and the partisanship and come to the table

Two sections Volume 41, No. 25

FarmWeekNow.com

Listen to Adam Nielsen’s comments about the House farm bill vote and what’s next at FarmWeekNow.com.

and find some agreement, some common ground,” IFB Vice President Rich Guebert Jr. said. Lawmakers ultimately focused on “the amendment process and individual priorities,” rather than “the overriding factor in this debate — whether we pass a bill,” Davis told FarmWeek, touting the

bill’s many “positive benefits.” “It’s unfortunate that we’ve worked so hard and come so far during the past two years to end up with this outcome,” IFB President Philip Nelson said. “We express hope that the inevitable political finger pointing will end quickly, and that both sides will work quickly — and in good faith — to bridge partisan and policy differences and pass a bill that will provide certainty for farmers, protect crop insurance and reduce the deficit.”

Davis admitted the agreement reached last week, which included a first-time cap on total annual farm payments even as it proposed to strengthen crop insurance protections, was not perfect. It nonetheless provided “a darn good starting point” for House-Senate conferees, he said. Davis said he hopes the bill’s defeat will not undo progress between U.S. House Speaker John Boehner (ROhio) and ag lawmakers.

Last year, Boehner resisted bringing the bill to the floor amid uncertain prospects for passage, but this time he “did what he said he was going to do and gave us an opportunity to have a debate on many different amendments,” he noted. “Many amendments that I don’t think were expected to pass were put into this legislation,” Davis said. “That open debate probably helped sink the bill. “Not that I want to limit

Food labeling concerns surface at legislative hearing See Farm bill page 2

BY KAY SHIPMAN FarmWeek

Consumers would face higher prices and fewer choices if Illinois requires a biotechnology label on some foods sold in the state, Illinois Senate subcommittee members heard last week. “Who bears the cost? Ultimately the consumer will bear the cost,” said Ron Moore, a Roseville farmer and Illinois Soybean Association director. Members of the Senate Subcommittee on Food Labeling heard testimony at the first of three scheduled hearings on a labeling proposal. Illinois Farm Bureau has been working with a coalition of agricultural organizations, business groups, and food manufacturing and marketing organizations to develop panels of experts to testify at the hearings. The coalition is working to show a united front on why labeling of foods containing ingredients from biotech crops is not in the best interest of Illinois farmers or the state’s food industry. “Putting safe and healthy food on dinner tables around the world is incredibly important to our members. After all, their families are eating those very same products,” said Heather Combs, IFB assistant director of state legislation.

Roseville farmer Ron Moore, seated at microphone, testifies before the Illinois Senate Subcommittee on Food Labeling during a hearing last week in Illinois State University’s Bone Student Center, Normal. An audience heard testimony about the potential impact of a proposal to require biotechnology labels on some foods sold in Illinois. (Photo by Kay Shipman)

Before the hearing, Subcommittee Chairman Sen. Dave Koehler (D-Peoria) told FarmWeek the senators would hear from “all sides.” Later in the fall, the senators will discuss “what we’re going to do,” Koehler said. Moore described how biotechnology helped him control weeds, use fewer pesticides, and improve yields. “I believe there are safeguards already in place to assure that GMO food is safe,” Moore told the senators. “If I didn’t believe this, I wouldn’t be pro-

FarmWeek on the web: FarmWeekNow.com

ducing them or feeding them to my own family and livestock.” Koehler commented, “I don’t know that it follows that labeling (food) means not safe.” “It ends up giving the impression that what I do is unsafe,” Moore said. “The consumer public will think that is not a good thing.” Spokesmen for Illinois manufacturers and retailers testified that companies that sell food in Illinois would be forced to have separate production lines and labels just for Illinois sales.

Some out-of-state companies may stop marketing in Illinois if forced to make a state-specific product, said Mark Denzler of the Illinois Manufacturer’s Association. “The issue is coming down to economics and marketing,” Koehler told the panel. “I am trying to create value” with this proposal. “Agriculture in Illinois is very diverse,” Moore responded. “We are not disparaging any type of production system or product. (But) I don’t want one system penalized.”

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


Quick Takes

FarmWeek Page 2 Monday, June 24, 2013

CONSUMERS SEEK FOOD INFORMATION — The decisions consumers make at the grocery store differ from the choices they make at restaurants. Brad Nelson, Marriott International corporate chef and culinary vice president, shared that finding during last week’s U.S. Farmers & Ranchers Alliance (USFRA) Food Dialogue in Chicago. Lynn Martz, a Maple Park farmer and livestock producer, participated in the panel discussion. Following the event, USFRA met with food industry representatives to release new survey information about transparency and food. Ongoing USFRA dialogues aim to address information about food production and nutrition consumers have access to and what should be available to them when making food purchasing decisions. Watch some highlights of the panel discussion at {fooddialogues.com}.

BRIDGE BUILDING — U.S. House Transportation and Infrastructure Committee member Janice Hahn (D-Calif.), has called on Congress to hold a hearing on bridge safety after a pair of high-profile collapses. A bridge on Interstate 5 in Washington state, classified as functionally obsolete by the U.S. Department of Transportation, collapsed May 23 after being struck by a truck carrying an oversize load. The collapse of a bridge in Missouri followed days later “With more than 70,000 bridges that have been classified as ‘structurally deficient’ nationwide, it is clear we have an infrastructure crisis in this country and it is only a matter of time before another bridge collapses and lives could be lost,” Hahn said. Her “Bridge to Jobs Act” would boost spending to repair or replace bridges deemed “structurally deficient.”

RFS2 FEUD CONTINUES — The battle for the barrel continued last week as Sen. John Barrasso (R-Wyoming) touted legislation to repeal the Renewable Fuel Standard (RFS2). Renewable Fuels Association CEO Bob Dinneen argued Barrasso’s bill “may serve the oil and gas interests in Wyoming, but it is bad for consumers, bad for the environment, and bad for America.” “Right now, we are fighting tooth and nail to introduce more choice into a market that is dominated by the petroleum industry,” Dinneen said. “Repealing the RFS is not the answer because the problem lies with the lack of choice caused by market domination by the petroleum monopoly. “I promise you, Senator Barrasso’s proposal will never become law because it is the wrong policy for America, and we will continue fighting for the RFS until the cows come home.”

FLOOD AID TOPS $100 MILLION –- The federal government is pumping more than $100 million in grants to help Illinois residents recover from the historic April floods, Gov. Pat Quinn announced Friday. In addition, $16.6 million in low-interest loans were approved to help individuals and businesses recover from the floods. Local governments in 39 counties may seek reimbursement for 75 percent of eligible flood-related expenses. The state and local governments spent more than $70 million in response to the flood.

(ISSN0197-6680) Vol. 41 No. 25

June 24, 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. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek.

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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant 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

IFB IN ACTION

New IFB logo unveiled Illinois Farm Bureau has launched an updated brand and new tagline — “Farm. Family. Food.” — in an effort to tell both IFB members and the general public more about who the organization represents and for what it stands. The new logo appears as part of the FarmWeek signature on page 1. “While IFB is known as an advocate for agriculture, we would like to better reflect to our members and public the full scope of what we do,” said IFB President Philip Nelson. “This newly developed tagline helps illustrate to members and consumers alike the important role IFB plays in everyday life. We truly believe that through use of our new tagline, IFB embraces its roots in agriculture, its role in sustaining farm life and families, and its long-standing position underpinning the business and individuals whose farms feed consumers the world over.” The tagline was developed

Farm bill

Continued from page 1

debate, but at some point, we have to look at the big picture here. Our goal has to be to pass a good, cost-effective farm bill out of the House, so we can work out the differences with the Senate.” He applauded colleagues who also voted for the measure, including East Moline Democrat Cheri Bustos and Belleville Democrat Bill Enyart, who also sit on the Ag Committee, and downstate Republican Reps. John Shimkus of Collinsville, Adam Kinzinger of Manteno, Aaron Schock of Peoria, Peter Roskam of Hinsdale, and Randy Hultgren of Winfield. While she disagreed with some provisions of the House measure, Bustos said she voted for the bill because “it was in the best interest of the people and economy of my district to move this process forward.” “There are too many uncertainties in farming, and now

Tuesday: • Ag weather with an Illinois State Water Survey representative • Ashley Middleswarth, Black Hawk College recruiter • Philip Nixon, U of I Extension specialist • Rita Frazer live from Beck’s Hybrids media day, Atlanta, Ind. Wednesday: • Tim Schweizer, Illinois Department of Natural Resources

with input from IFB staff, the board of directors, county Farm Bureaus, and organization members during a yearlong review of the organization’s brand. In focus group discussions, IFB members expressed that more could be done to effectively communicate the role and importance of Farm Bureau in today’s food, fiber, and fuel systems. The new tagline is an outgrowth of those findings. Additionally, creating a new tagline and updating the IFB brand was an important step in communicating more effectively with consumers, Nelson added. “It’s important for organiza-

tions like the Illinois Farm Bureau to proactively communicate their brand to members and other audiences,” Nelson said. “Without taking an active role in creating and managing our brand, it’s easy for misconceptions to take root. “In many instances, consumers perceive that IFB is involved in agriculture and is available only to farmers, or don’t understand its overall importance to food and Illinois families.” The tagline and other branding elements, including a logo and official color palette, will be used in IFB communications and at its many events.

Congress has again added another level of unnecessary worry,” Enyart concurred. American Farm Bureau Federation Policy Director Dale Moore told FarmWeek debate was “gathering steam” Thursday. Vote margins grew amid “thorny” sugar and dairy votes (members rejected a proposal to retool dairy supply management proposals) and a move to let states impose work requirements for food stamp recipients, Moore said. The bill came to a vote after House leaders agreed to trim an original 250-some proposed amendments to 103. Lawmakers had agreed to jettison the proposed “egg amendment” — Humane Society of the United States-supported poultry housing regulations. Davis warned that proposal would hurt “a growing livestock economy” and help price key protein sources “out of the hands who need it the most.” IFB Board National Affairs

and Marketing Committee Chairman Wayne Anderson warned last week’s failed vote could “open up the chance” that the egg amendment and other amendments opposed by ag groups could come up in the next round of House debate. Anderson noted current extension of the 2008 farm bill expires Sept. 30, and sees “a good chance there will not be another extension.” He urged congressmen who backed last week’s measure to “reformulate a good, working farm bill.” With Boehner’s continued support, Davis sees “a lot of room” to come back to the floor with “a better deal” that can reconcile partisan differences. “I commend those on the (Democrat) side who realize how important a comprehensive piece of farm legislation really is,” he said. “It reforms and restructures our food and nutrition programs, so that those who need the benefits the most will get them.”

public information liaison • Jay Butson, E15 Tractor Pull team member • Chuck Spencer, GROWMARK director of governmental affairs • Deb Moore, farmer and European Union animal care market study tour participant Thursday: • Representatives from the Illinois Corn Growers Association • Joe Kath, Illinois Department of Natural Resources endangered species manager • Samantha Schultz, Illinois Farm Families field mom

Friday: • Sara Wyant of Agri-Pulse • Taylor Rehburg and Dane Hasselburg, University of Illinois students • Diane Letson, Feeding America director of product sourcing and retail partnerships • Chris Magnuson, Illinois Farm Bureau’s executive director of operations, news and communications To find a radio station near you that carries the RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”


GOVERNMENT

Page 3 Monday, June 24, 2013 FarmWeek

Transmission projects at different stages

Island Clean Line project. The IFB Board of Directors voted to oppose the project proIllinois Farm Bureau remains vigilant as posed by Clean Line Energy, based in Housproposed transmission line projects move ton, Texas. through the regulatory process in Illinois, an The firm wants to build a 500-mile-long, Illinois Farm Bureau attorney reported during high voltage, direct-current transmission line the recent Illinois Agricultural Roundtable. from western Iowa through Rock Island CounA ruling is anticipated by Aug. 20 in ty across to Grundy County, where it proposes Ameren Illinois Co.’s proposed Illinois Rivers to build a conversion station. project, according to Laura Harmon, IFB senRecently, the Illinois Department of Agriior counsel. culture (IDOA) and Clean Line signed an The Illinois Rivers agreement. The private project is a 380-mile company has agreed to transmission line prouse a single-pole strucposal that would cross ture that has a smaller ‘IFB was concerned its mem- footprint than a latticeIllinois from west to bers’ due process rights were type structure. east roughly from Adams through Clark This summer, ICC not guaranteed under the counties. will hold a public expedited review process.’ IFB is troubled that forum in a location Ameren is seeking an along the proposed expedited approval route. — Laura Harmon process by the Illinois Farmers will be able IFB senior counsel Commerce Commisto speak before the sion (ICC), according ICC, Harmon noted. to Harmon. For examThe ICC also has set ple, the ICC would have less time (225 days) to aside two weeks in December for hearings on review 24 different proposed routes for the the project. project. Details on the project and the ICC filing are “IFB was concerned its members’ due online at {rockislandcleanline.com}. process rights were not guaranteed under the A new transmission project in Northern expedited review process,” she said. Illinois was announced last week. ComEd is IFB filed legal briefs in the case, and more proposing to build a new transmission line, than 70 landowners intervened, Harmon said. dubbed the Grain Prairie Gateway Project, A recommended ruling by the administrative across Ogle, DeKalb, Kane, and DuPage counlaw judges is anticipated in early July. ties. ComEd officials said they expect to file IFB also has been involved with the Rock with the ICC before the end of the year.

BY KAY SHIPMAN FarmWeek

Economic boost

Trees enhance consumers’ perception of towns

Trees offer communities and businesses economic benefits in addition to shade and color, according to a University of Washington researcher. Kathleen Wolf discussed the results of several studies about the influence of trees on business districts during the recent Trees Forever annual meeting in Des Moines, Iowa. Illinois Farm Bureau participates in Trees Forever’s Illinois Buffer Partnership. “People say they are willing to pay more for the same product in retail areas with trees” compared to those without trees, said Wolf, a social scientist and

landscape architect. Wolf and other researchers conducted several surveys in which they asked people to rate different aspects of businesses and communities based on street scenes with and without trees and other vegetation. In some cases, people compared two views of the same scene, except one had trees and vegetation digitally added and the other didn’t. Survey participants gave better ratings to the scenes with trees and landscaping, according to Wolf. Those perceptions also applied to the quality of goods and services for sale in

businesses and communities containing trees. Respondents said they expected to find higherquality products and ser vices there, she noted. “Shopping is a complex activity and involves emotion,” Wolf said. When comparing scenes with and without trees, sur vey respondents may have attributed characteristics to businesses and communities based on their past experiences in areas with trees, she explained. “Trees offer a positive attribute,” Wolf concluded. For more information, go online to {naturewithin.info}. — Kay Shipman

Prairie biomass field day, plot tour set Prairie plants grown for biomass will be the focus of a June 29 field day and plot tour in Decatur. Visitors will tour plots managed by the Agricultural Watershed Institute (AWI) on land owned by Caterpillar Inc. in Decatur. Advance registration is required by June 26. The free event is designed for farmers and landowners interested in growing native warm-season grasses as a crop and for conservation purposes. Information will be provided about technical assistance and financial incentives avail-

able to landowners. Registration will start at 9 a.m. in Richland Community College’s Shilling Community Education Center. Presentations will run from 9:30 a.m. to noon. A complimentary meal will be provided. The plot tours will follow lunch. The event is sponsored by the AWI. The University of Illinois Extension is a co-sponsor. Advance registration is required. To register or for more information, call or email Tim McMahon at AWI by June 26 at 217-877-5640 or email tmcmahon@agwatershed.org.

Legislature forms committee on public pension reforms

The Illinois Senate and House formed a conference committee to find solutions to the state’s public employee pension liability during last week’s special session. The same day, Gov. Pat Quinn set a July 9 deadline for lawmakers to pass pension reforms. The committee will be comprised of 10 members, five senators and five representatives. Senate President John Cullerton and House Speaker Michael Madigan each appointed three members. Senate Republican Leader Christine Radogno and House Republican Leader Tom Cross each appointed two members. Senate committee members are: Daniel Biss (D-Evanston), Kwame Raoul (D-Chicago), Linda Holmes (D-Aurora), Bill Brady (R-Bloomington), and Matt Murphy (R-Palatine). House committee members are: Elaine Nekritz (D-Northbrook), Mike Zalewski (D-Riverside), Art Turner (D-Chicago), Darlene Senger (R-Naperville), and Jil Tracy (R-Quincy). At least six of the 10 conference committee members must sign a conference committee report before it can be sent to each chamber for consideration. Quinn met with the legislative leaders and directed his staff and budget analysts to continue working with legislators. The state’s unfunded pension liability is an estimated $94 billion. The unfunded liability is the debt owed to cover all long-term expenses for retirees and current employees. In Illinois, a conference committee hasn’t been used to address legislative differences between the House and Senate since November 2005, according to Kevin Semlow, Illinois Farm Bureau director of state legislation. “In the late 1980s and through the 1990s conference committees were very common. When the Illinois Supreme Court narrowly defined the state Constitution that a single bill should include only subject matter, conference committee reports were used on rare occasions.” — Kay Shipman

Governor signs bill on hydraulic fracturing Gov. Pat Quinn last week signed legislation that would enact the nation’s most protective regulations for highvolume, horizontal hydraulic fracturing. The bill takes effect immediately. Illinois Farm Bureau supported the legislation based on IFB policy on hydraulic fracturing. Under the new law, Illinois will become the first state to require hydraulic fracturing operators to submit pre- and post-fracturing chemical disclosures to the state. Knowing exactly what materials are being used will allow the state to better protect consumers and the environment. In addition, Illinois will become the only state to require pre- and post-fracturing water testing.

“Now that this legislation has been signed, hydraulic fracturing can develop in Illinois with appropriate regulations that protect land and water resources. Southern Illinois and the entire state will benefit from the economic activity that will result,” said Bill Bodine, IFB associate director of state legislation. “This was a difficult issue to work through. With the leadership of Reps. John Bradley, Mike Bost, and David Reis and Sens. Mike Frerichs and Gary Forby, and others, they were able to bring together a diverse group of people from all aspects of this issue,” Bodine added. “This was a Herculean task, but they were able to bring a balanced approach to a controversial issue.” — Kay Shipman


COMMODITIES

FarmWeek Page 4 Monday, June 24, 2013

Cellulosics close to takeoff, fueled by corn?

BY MARTIN ROSS FarmWeek

It’s something of the holy grail for the biofuels sector — the key to unlocking the next phase of ethanol production and improving the environmental footprint of U.S. transportation. Like the legendary grail, some view cellulosic/biomass ethanol as an unattainable goal. John Caupert, director of the Edwardsville-based NCERC Biofuels Research Center, disagrees. The former National Cornto-Ethanol Research Center helped explore potential for ethanol from corn kernel fiber — to date, a biofuels production byproduct. Now, the U.S. Environmental Protection Agency is eyeing approval of corn fiber as an “ag residue” under the Renewable Fuel Standard (RFS2) credit as a advanced biofuels feedstock. Approval of corn fiber could be significant because the RFS2, which sets nationwide biofuels mandates through 2022, caps the amount of federally required corn-based ethanol at 15 billion gallons. Some 21 billion new gallons of

RFS2 demand are open to burgeoning advanced biofuels, including cellulosics. Because fiber conversion can be incorporated into existing corn ethanol plants, it could boost per-bushel ethanol yields and improve production cost efficiencies. Given existing production capability, EPA’s approval could offer a powerful kick start for a cellulosic ethanol industry expected to

take off over the next two years (see accompanying story). “I think we’re really close to making this happen,” Caupert told FarmWeek. “We’ve proven at our research center that theoretical ethanol yield increases of 8 to 10 percent are very real. The question of how much more ethanol you can get from corn kernel fiber has been answered. “Some policymakers have

questioned whether cellulosic ethanol is a reality, in what year or decade it will become a reality. This makes it a reality. After corn kernel fiber, you can essentially name your cellulosic feedstock. This could open a door to a potential vault of feedstocks.” The 10-year-old center has focused on corn kernel fiber research over the last four years. Researchers have considered two methods for tapping kernel

fiber: front-end separation of the fiber from the starch for separate fermentation into convertible sugars, or combined conversion of both starch and fiber into one ethanol “stream.” “We’re adamant that different options be available (to plants),” Caupert said. “We’re not reinventing the wheel of fermentation or conversion of cellulosics — we’re using what already exists.”

This fall’s second Iowa corn harvest should prove a historic one — a prospective milestone for next-generation ethanol. POET-DSM Advanced Biofuels plans to collect roughly 120,000 tons of corncobs, stover, and stalks for use when its Emmetsburg, Iowa, commercial cellulosic processing facility goes on line, tentatively in early 2014. At full plant commercialization, POET-DSM hopes to tap roughly a third of the corn acres within a 30- to 35-mile radius of the new “Project Liberty” plant, according to Wade Robey, chief technology officer

with POET and member of the collaborative POET-DSM Advanced Biofuels board. “Our average farm size is about 700 acres, and we collect about a ton per acre,” Robey told FarmWeek. “This facility will start up at somewhere around 20 million gallons (per year). We believe we can take it up to about 25 million gallons without additional expansion. There will be some bottlenecks beyond that. “From that point, we’ll be looking at the next facility. We’re going through the POET (corn ethanol) network, looking at the next site, but we’re also looking outside the POET network for

opportunities with partners who can license this technology and begin a program with us.” POET has extensively researched residue collection and storage, considering issues ranging from the ideal amount of residue that can be sustainably harvested from fields and changes in stover composition that determine ideal length of storage at POET-DSM’s 22acre baled biomass “stackyard.” Robey acknowledged the potentially delicate balance between collection and conservation. A total of about 5 tons per acre reportedly is available

for collection. Rival DuPont is looking at harvesting 2 “bone dry” tons per acre. POET, with help from Iowa State University, has decided 1 to 1.5 tons is sustainable, factoring in soil fertility and conservation and agronomic needs, he said. POET hopes ultimately to “replicate” stover conversion technology in many of its current 27 corn ethanol plants, Robey said. He said he sees some “headroom” for increased per-acre collection, but stressed “we’re going to take this slow.” — Martin Ross

POET fall residue harvest milestone for cellulosics

Wheat harvest, hay baling off to slow start BY DANIEL GRANT FarmWeek

Illinois wheat harvest got off to a slow start last week. Most farmers likely will wait until this week at the earliest to fire up their combines, according to Mark Miller, manager of Mennel Milling in Mt. Olive (Macoupin County). “I don’t think it’s ripe yet,” Miller said last week. “There may be a field or two go early. But the bulk of the crop is probably 10 FarmWeekNow.com or more days out (from harvest).” Visit FarmWeekNow.com to view the latest Cropwatcher Wheat growers in Southern Illinois typically begin harvesting reports and this week’s wheat harvest update. wheat around mid-June. But the crop as of the first of last week was just 16 percent ripe compared to 83 percent last year and the five-year average of 37 percent. “I don’t think there’s been any dry wheat cut yet,” Dean Shields, a FarmWeek Cropwatcher from Murphysboro (Jackson County), said last week. “There have been a few guys who started early, because they have a large amount of acres to harvest, so they’re drying it.” Shields said he believes wheat yields in his area will be good. USDA earlier this month raised its wheat yield estimate in Illinois by a bushel to a state average of 64 bushels per acre. Illinois farmers in coming weeks are projected to harvest 800,000 acres of wheat, 155,000 more than last year. Scab and flattened stands could cause issues for some growers. “Some wheat in my area went down,” Shields said. “A lot was planted on corn ground, which had leftover nitrogen. Then, when some guys put on the normal amount of fertilizer, it ended up being too much nitrogen.” Scab outbreaks reportedly are significant in some isolated areas, particularly in Central Illinois. “I don’t think the severity of it (scab) is that bad in our area. But it is a possibility,” Miller said. “Scab can be very spotty, depending on where you’re at, the weather, and maturity of the crop.” Meanwhile, farmers in recent weeks tried to work around showers to harvest hay. “Some farmers were scrambling to get hay cut and baled,” the National Agricultural Statistics Service Illinois field office noted last week. The first cutting of alfalfa hay was 76 percent complete by the first of last week compared to the average of 78 percent, while just 1 percent of the second cutting was complete, 12 percent behind the average pace.


PRODUCTION

Page 5 Monday, June 24, 2013 FarmWeek

EU animal study tour under way

IFB members to compare, contrast sow housing systems

BY DANIEL GRANT FarmWeek

Illinois Farm Bureau members participating in this week’s European Union Animal Care Study Tour will compare and contrast various livestock housing and production methods. Sow housing, in particular, will receive a great deal of attention during the tour. Europe banned use of sow gestation stalls earlier this year. Meanwhile, in the U.S., the majority of sows spend a portion of their lives in gestation stalls and productivity’s never been better. In March, USDA reported the average number of pigs saved per litter from December through February was a record 10.08, compared to 9.97 last year. The U.S. swine industry has expressed concern that a move from gestation stalls to group housing could lead to increased fighting and injuries among sows on some farms. So, there’s a lot for hog farmers to consider in ma-king sow housing decisions. “It will be interesting to hear from (European) farmers who put in new (sow housing) systems and from those who went out of business,” said Stacy Schutz, a tour participant whose family operates a sixth-generation crop/livestock farm in White Hall (Greene County). Carrie Pollard, a tour participant from Rockford (Winnebago CounEleven farmers, all of whom have ty), who is a technical some species of services manager for Bethany Animal Hospital livestock on their farms, flew to Lonand whose family operdon yesterday as ates a 100-cow dairy, is part of Illinois Farm taking a three-pronged Bureau’s European approach to the sow Union Animal Care housing issue in Europe. Issues Tour. She is curious to find out: The group Daniel Grant • Is there any way back includes Brad to other systems once Temple, IFB District 4 director from farmers convert to group LaSalle County, who is representhousing systems? In the ing the IFB board on the tour. The group, which also includes past year, there were reports of egg shortages a veterinarian and a veterinary (due in part to production technician, will visit farms in the restrictions) and egg/meat United Kingdom, France, Holland, Germany, and Denmark. price spikes in Europe. Sow housing, in particular, will • What are the best receive a great deal of attention methods to optimize during the tour. group housing systems? FarmWeek Senior Commodities “What are the most Editor Daniel Grant is accompanying the group and will provide reports on important aspects (of group housing),” Pollard the trip in subsequent issues. questioned. “Is it square footage, group size, etc?” • And what’s coming down the pipeline when it comes to livestock production systems? “It’s one thing to read about (new systems/methods), but it’s another to see them in use on farms,” said Pollard, who previously studied French agriculture through the University of Illinois study abroad program. FarmWeekNow.com Other issues that will be studied For the latest information upduring the tour include layer housing, antibiotics, tail docking, castra- d a t e s f r o m t h e E u r o p e a n Union Animal Care Issues Tour, tion, and biotechnology. visit FarmWeekNow.com. “I think it will be interesting to see why (Europeans) are so concerned about biotechnology when we don’t see the same issues here,” Schutz said. “We believe (biotech crops) are safe, and we’re happy to feed it (to livestock).” During the next 10 days, tour participants will visit farms in the United Kingdom, France, Holland, Germany, and Denmark. Other farmer-participants on the tour and their home counties are Pat Bane (McLean), Kate Hagenbuch (LaSalle), Pamela Janssen (Woodford), Al Lyman (Henry), Deb Moore (Warren), Mitzi Sharer (Henderson), Brian Spannagel (Sangamon) and Abe Trone (Stephenson). Brad Temple, IFB District 4 director from LaSalle County, is representing the IFB board on the tour.

Markets, marketing campaign raising demand for Illinois produce BY KAY SHIPMAN FarmWeek

Illinois growers and their produce remain in demand at growing numbers of farmers’ markets around Illinois. Meanwhile, a new marketing campaign is encouraging shoppers at farmers’ markets and grocery stores to look for Illinois-grown food. “Everyone wants a market. There is an opportunity for farmers to grow,” Pat Stieren, executive director of the Illinois Farmers Market Association (IFMA), told FarmWeek. To date, Illinois boasts 350 farmers’ markets around the state. Stieren said she frequently receives requests for information about starting new farmers’ markets or providing markets during special events. Stieren said she is working to match interested markets and growers using different methods. IFMA posts information on its Facebook page. The University of Illinois’ MarketMaker, an online database, also posts information about farmers’ markets at {marketmaker.uiuc.edu}. To offer shoppers different payment options, more Illinois farmers’ markets are expected to go online with electronic machines that allow them to take Link (food assistance benefits), credit, and debit cards, according to Stieren.

Whetting taste buds for Illinois-grown fruits and vegetables is a new marketing campaign, “Illinois where fresh is” by the Illinois Department of Agriculture (IDOA). New television commercials highlighting one or two in-season fruits or vegetables are airing on commercial cable networks in Chicago and six regional markets, said Jennifer Tirey, head of IDOA’s marketing and promotion bureau. June commercials focus on Illinois strawberries and blueberries. In July, another commercial will emphasize Illinois watermelon and peaches. That will be followed in late July or early August by one touting fresh Illinois sweet corn. In addition to Chicago, commercials are airing in Belleville, Carbondale, Effingham, Mount Vernon, Quincy, and Springfield. IDOA is using a USDA specialty crop grant to provide campaign marketing materials to 100 farmers’ markets and 200 grocery stores. A list of farmers’ markets and grocery stores participating in the marketing campaign is online at {Illinoiswherefreshis.com}. The three commercials may be viewed on the same website by going to the “market news” icon in the upper right, and clicking on the fruits or vegetable category listed below.

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FarmWeek Page 6 Monday, June 24, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: The only rain we had recently was 0.3 of an inch on Saturday, June 15. It was warm last week, so the corn and beans are growing fast right now. First-cutting hay continued, and most of that is now wrapped up. With temperatures in the mid-90s forecast for the next several days and not much rain to go with it, I think we are going to find out how well our subsoil moisture was recharged with this spring’s rains. Pete Tekampe, Grayslake, Lake County: A comfortable week in Lake County with cool nights most of the week. That is supposed to change with hot, humid weather in the 90s with storms five of the next seven days. We could use a little rain. Early corn is above knee-high with the later corn almost kneehigh. Most of the beans are looking good but could use a shower. The weeds seem to be growing faster. Winter wheat is starting to turn, and a lot of hay is being baled. Leroy Getz, Savanna, Carroll County: A week with no rain allowed for good hay making. The sunny, warm days brought great color to the corn, and you can see it growing daily. Some last postspraying on corn is occurring, but I have not seen any spraying yet on soybeans. Wheat is changing color fast. Our oat fields are looking excellent. It should be a great week with very little rain coming up. Ryan Frieders, Waterman, DeKalb County: We finished spraying our corn with post herbicide and have started spraying our soybeans. Side-dressing of corn with nitrogen is being done before the corn gets too tall to drive through. The week was dry, and a lot of hay was cut and baled. The hailstorm from two weeks ago caused some fields to need to be replanted. Larry Hummel, Dixon, Lee County: It’s time to finish spraying corn; the warm weather really pushed crop growth along. Our earliest-planted corn is at the V6 stage and ready to take off. There is some corn around that seems to be struggling to reach nitrogen. The symptoms are yellow, stunted corn mostly on the clay hills. My first reaction is that’s caused by compaction, but I’m not sure what the conditions were when the hills were planted. Soybeans are starting to perk up and are about due for another shower. Ken Reinhardt, Seaton, Mercer County: Another dry week. There is some planting and replanting to do in the river bottom ground, but post-spraying of corn was the major activity. The first cutting of hay was being completed as well. Some corn is starting to take off and look fairly decent, while other fields are a mess with replanted corn just emerging. Earlier-planted soybeans are looking good and those that were replanted soon will catch up. Ron Moore, Roseville, Warren County: We received 0.7 of an inch of rain on June 16 and that was the last rain we have received. Planting is now almost complete in this area. There are just a few acres of double-crop after hay or rye to be planted now. All of the corn and soybeans that have been replanted have emerged, and it looks as though stands are adequate. Lots of hay was baled last week. Post-spraying is just about finished except on any late-planted corn, and soybean spraying has started. The crops are starting to look much better with the warmer temperatures. Tim Green, Wyoming, Stark County: What a difference a week makes. Warm weather really perked up the beans and the corn. The corn has got a little bit of color now. I think it finally hit the nitrogen. The stands are nice where the water didn’t affect them. There are a lot of holes out there, but in general, the corn looks a lot better than it did earlier. A little bit of nitrogen is being sidedressed. People are finishing spraying corn and starting on beans.

Mark Kerber, Chatsworth, Livingston County: One can tell summer is here. It’s hot and dry. June is racing by. After receiving all kinds of rain weeks ago, it’s amazing how fast the ground can dry out. The southern half of Livingston County has not had any rain for three weeks now. None of the replanted corn and beans has had a shower since being planted. The 28 percent nitrogen needs rain to soak it down to the corn roots, and this can be a concern. The crop does look good, but it is a little behind for this time of year, especially the hundreds of acres of replant. Markets are not concerned with dry weather — yet. Ron Haase, Gilman, Iroquois County: Sprayers were busy applying herbicides in corn and soybean fields last week. Farmers were finishing up planting and replanting of crops as well. We started side-dressing nitrogen in corn at the beginning of the week and expected to be finished by Friday. Then we will begin making our planned second herbicide application. Other farmers have been mowing roadsides. It has been a dry week. Most corn in the area ranges from the V2 to the V9 growth stage. Those plants entering V9 will begin rapid stalk growth through internode elongation. The arrival of summer, the heat is causing some cornfields to roll their leaves to preserve moisture. Soybean fields range from emergence up to the V5 growth stage. Local closing bids for June 20 were: nearby corn, $7.06; new-crop corn, $5.41; nearby soybeans, $15.26; new-crop soybeans, $12.63. Brian Schaumburg, Chenoa, McLean County: Ninety degree heat has returned and looks to stay for awhile as crops root down and green up with a much-anticipated growth spurt. Subsoil moisture will carry the crop for a long time, but high night-time temps will be watched. There is a wide disparity in plant development from VE to V8 on corn and VE to V4 in beans. Post spraying is progressing nicely. Corn, $7.11; fall corn, $5.43; soybeans, $15.27; fall soybeans, $12.55; wheat, $6.60. Steve Ayers, Champaign, Champaign County: The green carpet emerges from the dark soil! Corn and bean fields are growing rapidly and filling in nicely. On June 17 my FS crop adviser called and said his spot-checking indicated we did not need our final spray on corn since he could not find any weeds. The fall application and spring burndown had been effective. He asked me to confirm, so I spent a couple evenings weed surveying, and we ended up spot spraying only a couple fields. I was in Arthur Tuesday evening and the skies opened up for 0.6 to 1.6 inches in a localized thunderstorm. See you at the Ford and Vermilion county fairs this week! Wilfred Dittmer, Quincy, Adams County: Summer is officially here, and the next thing we will be complaining about is cold weather. As for rainfall for the week, our gauge was among the lowest with 0.5 of an inch. Some areas received up to and above 5 inches, while neighbors got nothing. That brings our June total here to 0.6 of an inch. That may encourage some deeper root growth. Corn can use some extra water in spots that were drowned out. Soybean planting also is virtually complete the first time. What wheat I’ve seen looks good from the windshield. Some hay making is in progress. Carrie Winkelmann, Tallula, Menard County: Just heading out Friday morning to make some decisions on whether to replant some beans in the wettest areas of some fields. Because of the 2.6 inches of rain we received over the June 15-16 weekend, the replant corn we put in the ground two days before that gully washer was a huge waste of time and energy. The good growing conditions have made for good weed growing, but also for good weed killing (with Roundup). There are no pest problems to speak of yet, although the Japanese beetles should be hitting pretty soon.

Todd Easton, Charleston, Coles County: Finally, planting seems to be coming to a close. Most finished last weekend (June 15-16) just ahead of the rain that fell periodically into the beginning of the week. The official airport total was just above 1.5 inches and varied by a half inch more or less across the county. Early-planted soybean fields are getting a good start on growth but also dealing with significant weed pressure. Cornfields are trying to shake off the yellow. The average field right now would be in the V6 stage and finally rooting down. Next week may bring some wheat harvest results. Jimmy Ayers, New City, Sangamon County: We received 0.4 of an inch of rain last Saturday (June 15). Rainfall was varied. Corn seems to be taking root now. The V4 corn is almost to our hips. It’s normally quite a bit shorter. A lot of beans have gone into the ground. I’d say they are probably 85 percent done. A lot of spraying and hay making took place last week. Sangamon County’s fair went well. Be sure and check with your insurance agents or FSA office if you have prevented planting. Doug Uphoff, Shelbyville, Shelby County: June rainfall totals at the beginning of last week were anywhere from 0 to more than 2 inches, depending on what part of the county you were in. I had 0.3 of an inch, but another of our farms a mile away had 0.75 of an inch. The area by Windsor had 2.5 inches on a freshly planted bean field. Corn planted in May is starting to look much better. What was planted at the end of May still looks pretty rough with a lot of holes. Bean planting is 98 percent done with almost 100 percent of that emerged. Post-emergence spraying of Roundup on taller corn is taking place, and wheat is turning fast. With warm weather, we could be cutting by the 4th of July. Some bean fields need to be sprayed early because not all the waterhemp was killed with field cultivators before the beans were planted. David Schaal, St. Peter, Fayette County: It was a little on the warm side here last week. We received about 3 inches of rain since my last report. We had 1.3 inches on June 15 and on Monday afternoon (June 17), we had a storm dump 1.5 inches. Planting progress is nearing completion. Corn is really liking the warm, humid weather. Most of the corn has good color. It has hit the nitrogen and looks pretty good at this stage. Wheat harvest is just around the corner. Don’t know of any cut yet right around here. Dave

Hankammer, Millstadt, St. Clair County: Soybean planting was once again delayed last week as heavy rainfall moved through the area dumping 2-plus inches and creating flash-flooding conditions on some roads. Temperatures through the week were in the high 80s and finally reached the 90s as summer began. Before the rains, some farmers replanted corn in fields that had poor stands due to the excessively wet soils. Occasionally, the whole field had to be replanted. The height of corn plants in the county ranges anywhere from a couple inches to waist-high, depending on the planting dates. Fields are starting to acquire a healthy green appearance as we start to gain some heat units. Some farmers have finished planting soybeans while others are waiting for an opportunity to plant fields that have some wet soils. Many farmers are monitoring their fields to determine if they will need to replant any of their soybean fields due to excessive rains. Wheat harvest has started in the county. Some of the grain samples brought into the local elevator range from 14 to 24 percent moisture. There have been no reports on grain quality or yields at this point. Local grain bids are: corn, $6.73; soybeans, $15.32; wheat, $6.89.


Page 7 Monday, June 24, 2013 FarmWeek

CROPWATCHERS Dan Meinhart, Montrose, Jasper County: Storms moved through the area beginning Saturday night (June 15) and continued into the first part of the week. Various amounts of rain fell; some areas received up to 3 inches or more and some locations had hail. Farmers got back into the fields Thursday where ground conditions permitted. Planting and replanting were taking place. The strong winds that accompanied the storms blew down some wheat, which is getting more color. Temperatures have been in the upper 80s and lower 90s, and heat is expected to continue. Rick Corners, Centralia, Jefferson County: Thought for this week: It’s better to be lucky than good. This year, whether you get a good stand of corn or beans depends on which field you farm. Some have been done planting for a week; others are still fighting the mud. Man, there are some nastylooking cornfields around. Bare spots and corn of all sizes from a foot tall to just coming up. A lot of fields were replanted after the May 31 deluge. Single-crop beans are about all planted, and wheat harvest has started.

Kevin Raber, Browns, Wabash County: Wheat harvest has started here in Southeastern Illinois. I have not heard any yield or moisture yet. I hoped to get started last Friday. The corn crop has perked up. The warmer and drier weather is just what is needed. Better growing conditions also have helped the soybeans. There are still a few lowland acres and some replanted beans left to plant. Randy Anderson, Galatia, Saline County With some heat and some nice days, the crop is trying to turn around. But in my part of the county we still lack a few acres of first-crop beans on some of the wetter ground. Started cutting wheat on June 20. Moisture was running 16.5 to 12 percent. Yields are average and quality looks very good. Plan to start double-cropping in a few days. Post spraying is being done on some early beans. And the weed of the week is marestail. Someone needs to find a market for it.

Ken Taake, Ullin, Pulaski County: We had a nice inch of rain on Monday, June 17. Some areas received barely a trace while others received more than 2 inches. We were fortunate to be in the right spot on this one. It was really good for our crops on the hills. We managed to get back in the field spraying again by Wednesday afternoon. Planting in our area is about finished. There are a few late beans still being planted. Crops on the hills look good. The corn has finally hit nitrogen. It’s got a good, dark color. The bottoms are still showing the effects of too much water. Stands there are a little bit spotty. But it’s late enough now that they are what they are. Wheat harvest is getting started. Yields I’ve heard of so far seem about average, but we’re very early in the harvest. Please have a safe week.

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

Trade will keep close eye on crop conditions, weather

Planting finally nears completion

A stretch of warmer, drier weather last week allowed most farmers to finish planting soybeans and replanting corn. Illinois farmers as of the first of last week had planted 99 percent of corn and 90 percent of soybeans. “It’s the latest I think I’ve ever planted soybeans (not counting replants),” said Rob Shaffer, who has been farming near El Paso since 1987. “I was for tunate and g ot ever ything in (that was planned prior to the season).” Shaffer, an Illinois Soybean Association board member, finished planting beans on June 13. He believes most far mers pushed to finish planting beans last week to ensure full coverage for crop insurance. Far mers in the southern half of the state had until June 20 to plant their bean

crop and receive the full crop insurance guarantee. Nationwide, 92 percent of the corn crop had emerged and 85 percent of soybeans were planted as of the first of last week. N ow t h a t m o s t f a r m e r s have parked their planters for the season, the trade likely will narrow its focus to acreage, the condition of the crops, and weather. U S DA o n Fr i d ay w i l l release its highly anticipated crop acreage and grain stocks reports. USDA in March proj ected U.S. fa r m ers wo ul d plant 97.28 million acres of corn and 77.13 million acres of beans. But those totals are expected to shift Friday due to the wet spring and subsequent planting delays in much of the Corn Belt. “Based on anecdotal reports, a few non-random private surveys, and historical evidence, we would expect

planted acreage of corn to be 2.5 to 3 million less than March intentions and soybean acreage to be as much as 1 million acres more than intent i o n s,” s a i d D a r r e l G o o d , University of Illinois ag economist. Infor ma Economics last week estimated U.S. acreage will total 95.62 million for corn and 77.75 million for beans. “Now (that the crops are planted), the trade will g o back and start trading weather,” said Randy Martinson, market analyst with Progressive Ag. The trade also will keep a close eye on crop conditions. USDA last week rated crop conditions as 64 percent good to excellent, 28 percent fair, and 8 percent poor/very poor for corn. Beans were rated 64 percent good to excellent, 30 percent fair, and 6 percent poor/very poor. “Overall, the stuff that

The Western Illinois University (WIU) School of Agriculture’s annual Agronomy Field Day will be from noon to 3:30 p.m. Thursday in Macomb. The main topics will be precision cover crops and management of weeds and western corn rootworms. A complimentary lunch will be served at the WIU Livestock Center, 2265 Wigwam Hollow Road. The event is free, but advance registration is encouraged to help with meal planning. Field presentations will occur at the WIU field laboratory. The keynote address will be given by Matt Montgomery, a 1994 WIU ag graduate who is an agronomist and certified crop adviser. Montgomery will discuss managing western corn rootworms. Joel Gruver, manager of WIU’s Allison Organic Research and Demonstration Farm, will talk about precision cover crops. Weed management discussions will involve the university’s research plots. To register, call the School of Agriculture at 309-298-1080. For specific Agronomy Day information, contact WIU’s Mark Bernards at 309-298-1569 or via email at MLBernards@wiu.edu<mailto:ML-Bernards@wiu.edu>.

The most successful approach to controlling marestail requires a planned approach beginning with fall applications. Although marestail is considered a winter annual, it also has spring germiBarry Nash nation capabilit i e s. S p r i n g - g e r m i n a t e d marestail has been identified in southwest Iowa as well as Central and Southern Illinois. Once again, fall-applied herbicides will prevent early spring germination.

Once marestail exceeds 8 inches in height, it becomes very difficult to control. Furthermore, if it is glyphosate resistant, the only consistent method of control is tillage or a fall application of herbicides. Cur rently marestail rang es from 6 to 18 inches or more in height throughout the state. Complete control may not be possible. Successful “suppression” should be the goal at this point. Listed below are our best options for suppressing marestail in burndown situations: Avoid plant growth regulator herbicides (2,4-D and dicamba) at burndown applica-

tions due to residual activity on soybeans. Growers need to plant soybeans as quickly as possible right now. Dicamba and 2,4-D ester have soil residual activity resulting in 7- and 15-day soybean planting restrictions. Utilize higher rates of glyphosate with 1 ounce per acre of saflufenacil (the active ing redient in Shar pen and Optill herbicides). If soybeans have emerged, we are now in the suppression

mode. Utilize a high rate of glyphosate plus 0.3 to 0.4 of an ounce per acre of chloransulam-methyl (the active ingredient in FirstRate herbicide). If the marestail is glyphosate resistant, expect minimal suppression. In corn, use a high rate of glyphosate with an HHPD Inhibitor herbicide plus AMS. Be sure to check the individual herbicide labels for application and insecticide restrictions. It’s good to have an under-

BY DANIEL GRANT FarmWeek

didn’t get drowned out looks pretty g ood,” said Shaffer, who last week focused on baling hay that yielded as much as 150 percent more than last year.

“We just need sunlight and heat to get the corn back to forest green from its current pale, yellow color. And (the crops) also are going to need another drink pretty soon.”

WIU Agronomy Field Day Thursday

Controlling large marestail an issue this spring BY BARRY NASH

standing of possible scenarios and solutions you may experience due to marestail this growing season. Your local FS crop specialist can address any questions or concerns. He or she recognizes the importance of developing a long-term weed management system and can be your greatest resource for the overall productivity on your farm.

Ba r r y N a sh is GROW MARK’s weed science technical manager. His email addr ess is bnash@growmark.com.


GOVERNMENT

FarmWeek Page 8 Monday, June 24, 2013

Cabinet officials endorse Senate immigration reform BY MARTIN ROSS FarmWeek

Senate immigration proposals would be tough but fair, U.S. Ag Secretary Tom Vilsack and Homeland Security Secretary Janet Napolitano maintained last week. The pair stumped for comprehensive immigration reform as lawmakers dug into dual

labor/border security issues. Vilsack said approval of an immigration bill this year is “extraordinarily important,” especially for “rural America and the farming community.” Napolitano hailed the “overall economic well-being” of bringing a current 9 million to 11 million purportedly undocumented workers “out of the

shadows” and registering them to work legally. She maintained “a great border security bill,” providing new technology to assist some 20,000 federal agents and shift greater manpower to U.S. points of entry. The bill’s “exit/entry” provisions would enable officials to “better ascertain who has overstayed their visa,” she said.

Davis unsure how, if reforms will emerge

U.S. House Ag Committee member Rodney Davis warned “only time will tell” if Congress can come to a consensus on immigration reform. The Taylorville Republican emphasized a need for an immigration package “that’s going to work for the entire country” but that also will bolster border security “so we don’t have a problem with illegal immigration again.” He is concerned about potential deterioration of carefully wrought, comprehensive proposals from a diverse House-Senate “gang of eight.” Davis said he would “reserve judgment” regarding the Senate’s current immigration plan, questioning if it “will even look like that” after senators have debated an anticipated raft of amendments. However, Davis said he first wants to see “what the House brings forth,” and stressed House leaders may not base legislation on Senate proposals. He was uncertain whether a House package would emerge “piece by piece” — Rep. Bob Goodlatte (R-Va.) has introduced freestanding ag-only labor provisions — or in comprehensive form. “I had a lot of optimism that the House was

going to put together a good bipartisan plan because we had some of the most conservative members of the Republican caucus sitting in a room of eight with some of the most liberal members of the Democrat caucus,” Davis said. “Unfortunately, that gang of eight’s fallen apart. So I’m a little less optimistic that we’re going to be able to see a true, comprehensive immigration reform package that’s going to be able to pass the House. Time will tell.” Davis recently discussed the issue with David Bender, co-chairman of the Illinois Business Immigration Coalition. Bender argued voters “(want) to see both Democrats and Republicans working together to fix this decades-long problem.” In an RFD-FarmWeek interview last week, South-Central Illinois dairyman Dave Lidy noted a significant reliance on foreign-born workers within Illinois’ dairy industry. Immigrant labor today is more common on larger dairy farms, “where milking may be done around the clock, where it’s hard to find family members who could do that, would do that, or want to do that,” Lidy said. — Martin Ross

It would bolster an electronic verification system to help employers quickly and accurately identify legal workers. Recognizing “the special circumstances of rural America,” Napolitano stressed a push for verification technology “that’s mobile and fast and can be taken out to the field.” “We are growing by thousands of employers a week who are using ‘E-Verify,’ as well as a number of local and state governments,” the former U.S. attorney general and Arizona governor told FarmWeek. “This bill would provide that over the next five years we’d see national implementation. “It would be done in phases, with the agricultural industry being basically the last phase. That’s not because agriculture is not important — it absolutely is — but because we want to make sure we have the technology and capability to reach out into rural America, into the fields, and make it easy as possible for employers to obey.”

The state of Georgia alone has sustained $320 million in “lost economic opportunity,” to the tune of 1,500 potential U.S. jobs, “because products are not being harvested,” Vilsack said. He warned a continued ag labor shortage could result in existing production “migrating outside the United States.” Vilsack cited estimates some 80,000 acres of California production already have moved offshore. Beyond ag needs, the Senate’s “pro-agriculture” plan would help reduce the federal deficit by identifying and collecting tax revenues from previously undocumented workers, Vilsack said. Napolitano argued newly documented workers would be more likely to report crimes they’ve witnessed. “The reality is that this is a pro-growth bill,” Vilsack said. “The ability of our gross domestic product to grow as a result of immigration reform is well-documented.”

Motorcycle group raises E15 ‘negativity’

Bikers are wasting energy revving their engines over E15, a biofuels marketing specialist and cycling enthusiast argued last week. Last week, American Motorcycle Association (AMA) members converged on Washington seeking to block 15 percent ethanol gasoline sales until the new blend can be tested for motorcycle safety and performance. That’s despite the fact that fewer than 30 stations nationwide carry E15. In addition, the U.S. Environmental Protection Agency specifically limits use of E15 to model year 2001 and newer automobiles and trucks, and E15 pumps are specifically labeled to prevent use in cycles or small engines. “Our message to AMA and all motorcycle riders is to not use the fuel,” said Renewable Fuels Association (RFA) Director of Market Development Robert White, a Harley-Davidson owner. “In fact, it’s illegal and would remain illegal no matter what any testing would confirm.” The AMA lobbying event was sponsored by the American Fuel and Petrochemical Manufacturers. According to White, E15 is the only retail fuel not approved for motorcycle use that’s labeled to indicate “who can and cannot use the fuel.” He cited continued availability of 85 octane fuels “that aren’t approved for any engine manufacturer today, let alone for motorcycles,” in areas including biker mecca Sturgis, S.D. RFA has addressed bikers at the annual Sturgis motorcycle rally in an attempt “to counter a message being bought and delivered by Big Oil,” White said. RFA also has repeatedly strengthened an E15 “misfueling mitigation” plan aimed at preventing misuse in older vehicles and small equipment, delaying E15 sales by several months. During an RFA news conference, Bryan O’Neill, mechanic and technical guide with the Iron Order International Motorcycle Club (the world’s second largest), said he has seen “zero problems” with standard E10 use in motorcycles. AMA’s high-profile Washington gathering has helped fuel “the negativity surrounding (E15)” that has slowed retail introduction, White said. However, he noted a growing number of independent retailers “and even those within the branded (fuel) community” are eyeing E15 sales given the price differential between ethanol and gasoline and the current cost advantage of suppliers blending E15 vs. buying RFS2 biofuels credits needed to meet federal requirements. “The rollout’s been slow, but it’s been slow because of things like what we’re talking about today,” White told FarmWeek. “We’re working diligently with retailers across the country, and we think this fall, there will be a lot more movement based on the market.” — Martin Ross


FROM THE COUNTIES

Page 9 Monday, June 24, 2013 FarmWeek

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OOK — Farm Bureau will offer discounted tickets for the Chicago White Sox vs. Detroit Tigers game at 7:10 p.m. Tuesday, July 23, at U.S. Cellular Field. For tickets, go to {whitesox.com/fbn} (service fees will apply); call Ticketmaster at 866-7694263 and use code “CCFB” (service fees will apply); request by mail at Chicago White Sox Sales Department, Attn: Farm Bureau GSG, 333 W. 35th St., Chicago, IL, 60616; or fax 312-674-5140. Additional information is available at {cookcfb.org}. Deadline to purchase tickets is July 12. • The Far m Bureau Commodities and Marketing Team’s 2013 Recipe Collection is now available. For a free copy, call 708-3543276, email membershipdebbie@cookcfb.org, or visit {cookcfb.org/buylocal/recipe-collection}. RUNDY — Farm Bureau will sponsor a blood drive from 3:30 to 6:30 p.m. July 1 at the Farm Bureau office. For more information, call the Farm Bureau office at 942-6400. ASALLE — Season tickets are available for the 2013 LaSalle County 4-H and Jr. Fair July 10-14. Cost is $20 for ages 5 and older and may be purchased at the Farm Bureau office.

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ACON — Farm Bureau annual meeting and member appreciation dinner will be at 6 p.m. July 26 at the Macon County Fairgrounds Pride of the Prairie Building. Cost is $2. Tickets are available at the Farm Bureau office through July 18. Proceeds will benefit the foundation scholarship fund. EORIA — Far m Bureau will take Michigan blueberry orders for July 18 pickup at the Far m Bureau office. Blueberries are available to members in 5- and 10pound boxes. Deadline to order is July 11. Call the Far m Bureau office at 6867070 for more infor mation. • Country Financial will sponsor a blood drive with the American Red Cross from 10 a.m. to 3 p.m. Thursday in the Farm Bureau auditorium. Call Betty at Country Financial at 6867050 to register. OCK ISLAND — Farm Bureau will cosponsor a market outlook meeting at 6:15 p.m. July 2 at the Moline Viking Club. Jamey Kohake, Paragon Investment grain and livestock producer adviser, will be the speaker. Cost is $20 in advance and $30 at the door. Call the Farm Bureau office at 736-7432 for reservations. ANGAMON — Young Leaders will host Ag Exploration Day beginning at 9 a.m. Friday at the Sangamon County Fairgrounds. Farm

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Travel to Paradise with other Farmers!

Hawaiian Farm Tour 13 Days - 4 Islands from

$1899*

Oahu ✴ Kauai ✴ Maui ✴ Hawaii January 2014 Departures! This famous Hawaiian Farm Tour has been offered by YMT every year since 1974. Discover the natural wonders and breathtaking scenery as you visit the four main islands. Sightseeing of all the major highlights plus additional, special sightseeing for those in the Ag industry are all included. Plus you will be accompanied throughout by one of our friendly Polynesian Tour Directors, which adds a unique cultural perspective to your tour experience. Highlights: Honolulu, world-famous Waikiki Beach, Punchbowl Crater, Pearl Harbor, USS Arizona Memorial, Wailua Riverboat Cruise, mystical Fern Grotto, Steel Grass Farm (bamboo, vanilla and cacao), Old Whaling Capital of Lahaina, lao Valley, Maui Gold Pineapple Plantation, Hilo Orchid Nursery, Volcanoes National Park, Giant Ferns, Macadamia Nut Factory, Black Sand Beaches, Kona Coffee Plantation, Natural Energy Laboratory of Hawaii, Abalone Farm and much more. Includes: a flower lei aloha greeting, quality hotels, inter-island flights, baggage handling, tour director, special events & escorted sightseeing. *Price per person/double occupancy. Add $199 tax, service & gov’t fees. Airfare is extra.

For details and itinerary call 7 days a week:

1-800-736-7300

Family Night, consisting of farm safety demonstrations and a cookout, will be from 6 to 8 p.m. that evening. Call the Farm Bureau office at 753-5200 to register or for more information. ERMILION — Farm Bureau will host member appreciation night with the Danville Dans at 6:30 p.m. Saturday at the Danville Stadium. Tickets are available at the Farm Bureau office. ILL - The Peotone Educational Foundation and the Peotone FFA Alumni with the assistance of the Will County Farm Bureau will sponsor a vintage tractor ride and craft show July 27 at the Peotone High School. The tractor ride will be from 8 a.m. to 1 p.m., and the craft show from 9 a.m. to 3 p.m. To register, contact Jim Robbins at jimrobbins@urbancom.net or call 815-5928293.

TAKING A FIELD BREAK

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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

Schuyler County Farm Bureau members recently teamed with Two Rivers FS and the Schuyler County Soil and Water Conservation District to offer area farmers drinks and snacks. Schuyler County Farm Bureau Manager Kelly Westlake, left, talked with Marvin Phillips during a field break. Stacy Ward, Two Rivers FS energy marketing assistant, right, gave Phillips a slow moving vehicle sign. (Photo by Jami Mowen, Soil and Water Conservation District administrative assistant)


PROFITABILITY

FarmWeek Page 10 Monday, June 24, 2013

Yield, weather, and volatility — oh my! OK, so I may have taken a line from the classic movie, “The Wizard of Oz” for my title. Having three girls at home, we have watched this many times, and I felt it was a good time to use the reference. Cory Winstead Many times I will say let’s not get bullish or bearish but have an open mind and see what the fundaBY CORY WINSTEAD

mentals are telling us over the long term. This year is no different. With the wet weather causing planting delays this year, the market is trying to decide how many acres will go unplanted this year. The talk is anywhere from 1 million to 4 million acres lost. The average is roughly 1.5 million with 700,000 corn acres moving to beans. The initial reaction by the market after the report on June 28 will be how far off of these we are. One thing to keep in mind as this

debate pushes on is this — given the wet weather, we have 95 percent of corn planted vs. the average of 98 percent. This is only 3 percent off the average pace, proving that with hard work, technology, and equipment, farmers can get crops planted much faster than in years past. The other issue will be yield and this, I believe, is the most important. Yields could be very good on the acres that will be harvested, making up for the acreage and yield losses in the other

rest of Illinois ends June 30. The late planting period for soybeans ends July 10 in northern third of the state and July 15 across the southern two-thirds. To remain eligible for corn “prevent-plant” payments, producers can’t plant a new crop until after the end of the corn late-planting period, Country Financial crop claims supervisor Steve Worthington stressed. That means beans can’t go into most covered corn acres in Illinois until July 1. In that case, growers would receive no more than 35 percent of their otherwise eligible corn prevent-plant payment. If they opt to plant nothing, they can

receive 100 percent of eligible payments. According to U of I economist Gary Schnitkey, preventplant payments for corn “almost always” will be larger than anticipated returns for soybeans planted in late June. Ashkum farmer Randy Poskin recently was forced to make replant decisions on corn and later-planted soybean acres. He consulted with his insurance representative before filling out “thin” corn stands or replacing rain-damaged beans. “You could still plant beans today and get a decent yield,” Poskin told FarmWeek. “But I think everyone has to weigh his options — see just how much money the prevented-planting option provides before he goes out and puts in beans. “Right now, taking a prevent plant is probably the best option if you don’t have your corn in. As far as anyone still planting beans, I think I’d go ahead and plant them,” said the Iroquois County farmer. Note: Prevented-planting acres must comprise a minimum 20 percent of the individual unit planted to the covered crop or a total of 20 acres, whichever is less.

areas. Between talking to farmers and traveling the Midwest, I have found that most areas that are planted are reporting good, solid stands. This is giving us good and early hope that yields will be favorable. This year is being compared to the crop year of 1991. That year, final yield was 93 percent of trend. If we had a similar yield this year, we would be looking at 155 bushels per acre. Given that yield and 2 million fewer acres, we would still have enough to satisfy project-

ed demand creating a sizable build in carry out. Finally, after the report June 28, all eyes will focus on weather. We have a substantial amount of acreage that would be ready for pollination the third week of July. Keep your eyes on the prize of profitability, and be prepared to take advantage of price increases as weather and yield discussions create volatility. Cory Winstead is an account manager for AgriVisor. His email address is cwinstead@agrivisor.com.

Prevent plant $ vs. beans — a growing concern

BY MARTIN ROSS FarmWeek

A University of Illinois ag economist urges producers to carefully weigh any decision to sacrifice “prevent-plant” protections for possible profits from late-planted beans. If a farmer with Yield or Revenue Protection crop insurance is prevented by weather conditions from planting a crop by his region’s final plant date or during the subsequent “late planting period,” he can file for a prevent-planting payment. The corn late-planting period in Illinois’ seven southernmost counties ends Tuesday. The same period for corn in the

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10-12 lbs. 40 lbs.

Range Per Head $27.99-$48.00 NA

Weighted Ave. Price $39.21 NA

This Week Last Week 66,958 101,246 *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 $98.30 $100.40 -$2.10 $72.74 $ 74.30 -$1.55

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

This week NA NA

Prev. week Change $124.24 NA $123.00 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 $136.62 $136.14 $.48

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 118-169 lbs. for 107.29-135 $/cwt. (wtd. ave. 117.86), wooled 180 lbs. for $115/cwt.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 6/13/2013 2.8 21.6 14.1 6/06/2013 3.5 24.8 6.4 Last year 11.7 21.0 27.2 Season total 1273.9 41.8 560.9 Previous season total 1194.5 43.5 1269.0 USDA projected total 1350 1025 750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

University of Illinois economist Gary Schnitkey notes a variety of factors play into the “prevent-plant” insurance decision. This chart factors in agronomic and other considerations that may determine returns from a prevented-planting claim.

Country is offering no specific prevent-plant/second crop recommendations, but is helping policyholders “lay out the options” under individual coverage or situation, Worthington reported. To determine eligible acres, Country adjusters need both a claimant’s current planted acres and planting history over the last four consecutive years for a covered crop in the affected county.

That includes maximum acres — the largest number of acres a farmer has raised in any one of the previous four years, Worthington said. “There’s also the option of planting beans during the corn late-planting period and electing not to take a prevent-plant payment at all,” he told FarmWeek. “Farmers have to figure out the economics of that.”

Cattle market could be due for summer low

BY DANIEL GRANT FarmWeek

The cattle market will likely put in a summer low in the near future before rallying again. USDA last week in its monthly cattle on feed report surprised traders as placements in feedlots were slightly higher and marketings of fed cattle were slightly lower than the average trade guess. Placements in feedlots during May totaled 2.05 million head, down 2 percent from last year, while marketings (1.95 million head) were down 3 percent from a year ago. “We’d call it slightly negative,” Rich Nelson, director of research at Allendale Inc., said of the report. “Placements were a little higher than the average trade guess. It (the placements number) was smaller than last year, but last year was a big number.” Traders expected more cattle to be grazed on pastures in May due to adequate to surplus rain-

fall in many areas of the Midwest. But more cattle than expected wound up in feedlots. Overall, cattle on feed on June 1 totaled 10.74 million head, down 3 percent from the same time last year. Nelson predicted cash cattle prices near-term could dip to $115 to $116 per hundredweight. “We’re still trying to find the summer low,” Nelson said. “Once we hit that point, we’re looking for a seasonal rally.” Cash cattle prices could climb back up to around $127 per head by October, the analyst predicted. The slightly bearish tone to the cattle on feed report Friday was balanced by a cold storage report that was friendly to the market. May stocks of beef totaled 478.5 million pounds, which was about 33 million fewer pounds than the average trade guess. “It looks like consumers are back on target and buying more beef,” Nelson added.


PROFITABILITY

Page 11 Monday, June 24, 2013 FarmWeek

CASH STRATEGIST

Corn Strategy

ü2012 crop: July corn was able to penetrate the $6.67 resistance, but upside momentum likely will be limited. Take advantage of recent strength and price any oldcrop inventory other than “gambling stocks.” ü2013 crop: The nearterm trend has shifted higher, but it still remains unlikely that prices in December will test the $5.73 high. Use rallies on December futures for catch-up sales. vFundamentals: The recent surge in the corn market has been linked to uncertainty about the size of the U.S. corn crop, as extremely wet conditions this fall likely have resulted in some intended corn acres being switched to soybeans. Informa came out with its estimates and pegged U.S. corn acres at 95.262 million vs. 96.8 million last month. The current USDA estimate stands at 97.3 million. However, current conditions throughout the Midwest appear favorable toward development.

Cents per bu.

Soybean Strategy

Export business holds steady

Soybean export shipments have continued to decline since late winter, as the majority of the international business has shifted toward South America. Brazilian soybean loadings have slowed slightly from last month, but it’s normal for their shipments to peak in May. It appears U.S. shipments are still in line to at least meet USDA expectations. Corn export shipments have pretty much matched USDA expectations since the start of

the marketing year. They recently dipped slightly due to limited demand out of China. However, weekly export sales were friendly, as they exceeded trade expectations and came in at 8.3 million bushels. The new marketing year for wheat is under way and out-ofthe-gate shipments are running slightly above USDA projections. During the early spring months wheat, exports were sluggish, but they have started to show signs of picking up. This was evident in weekly export sales exceeding expectations by coming in at 15.9 million bushels. However, the U.S. is going to continue to encounter a lot of competition from the international market.

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.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

ü2011 crop: July futures’ inability to challenge the $15.50 high tends to suggest limited upside potential. Use rallies to price old-crop inventories. Producers may even consider pricing “gambling stocks.” ü2012 crop: Despite the recent surge in the market, it was still unable to test the $13.25 region. As long as non-threatening conditions unfold this summer, the market will be vulnerable to additional weakness going forward. Use rallies to make catch-up sales. vFundamentals: Weather conditions over the past week should have allowed for further soybean planting throughout the Midwest. Private weather forecasters have reduced their U.S. temperature outlooks for the coming week and added some moisture to the eastern and southeastern regions, which would be beneficial. Informa pegged U.S. soybean acres at 77.756 million vs. last month’s estimate

of 77.3 million. The current USDA estimate stands at 77.1 million.

Wheat Strategy

ü2012 crop: The shortterm has turned friendly, and it appears a near-term low likely has been established. Use rallies to make needed catch-up sales. ü2013 crop: Use rallies above $7 on Chicago July futures to make catch-up sales. If you plan to sell wheat off the combine, be more aggressive in making additional sales on rallies. vFundamentals: The

momentum in the wheat market could be linked to a few different influences. Wheat has benefited from spillover support from the surging corn market. In addition, the trade continues to remain uneasy about the quality of the winter wheat crop, as it has contended with drought conditions since last fall. Initial yield reports out of Texas and Oklahoma have been less than impressive. On the flip side, spring wheat farmers continue to struggle to get their crop planted because of too much moisture.


PERSPECTIVES

FarmWeek Page 12 Monday, June 24, 2013

Mighty oaks from little acorns grow in rural Illinois

You may have seen recent commercials promoting “Small Business Saturday,” encouraging the support of local businesses. For those of us over the age of 50, we didn’t need a reminder! One, we likely knew or were related to the person who owned the store; and two, we didn’t have many options. Today, with the advent of the big box stores and the closure of many of those locally owned businesses, we COLLEEN CALLAHAN recognize the value and the community impact of “what once was.” In our rural communities, the local community drives the rural economy. Main Street businesses are critical to economic growth. Money spent and invested locally rolls through a community and generates even more economic benefits — and jobs! That’s why rural small businesses are critical to strong rural communities. And it’s why USDA was pleased to join with the Small Business Administration to recognize and honor America’s small businesses recently.

At USDA, we have the expertise and financing to help small businesses. In 2012, we invested nearly $28 million in rural Illinois businesses, awarding 50 loans and grants through various programs. Through these investments, an anticipated 662 jobs will be created or saved. What a significant impact these jobs will make in those communities! One program that provides continued assistance to businesses in rural Illinois is the Intermediary Relending Program (IRP), a 30-year loan at 1 percent interest to a nonprofit or public body intermediary. The intermediary makes smaller loans from the fund to businesses, and as a loan is repaid, additional loans are made from the revolved funds. This program has seen much success in Illinois. For example, the South Central Illinois Regional Planning & Development Commission has participated in the IRP since 1992. It has made 74 loans totaling $8.439 million. This has resulted in the creation of 1,279 new jobs and

retention of 276 existing jobs in a fivecounty region that encompasses Clay, Effingham, Fayette, Jasper, and Marion counties. Another program benefitting small

businesses is the Rural Business Enterprise Grant (RBEG). While the applicant is a nonprofit or public body, small businesses are the beneficiary. Grant purposes include technical assistance, streetscape projects to make a community more attractive for small businesses, infrastructure projects for a business park, revolving loan funds, and many other purposes. The Southernmost Illinois Delta Empowerment Zone received an RBEG grant to buy a piece of equip-

ment that it leased to Farrow Lumber, a small business in Cairo. This equipment enabled Farrow to greatly increase production and add several jobs. After a 2011 tornado destroyed downtown Elmwood, the city created a revolving loan fund with a RBEG to support the recovery of the downtown business district. One of the businesses supported by the fund was Lampe Publications, which produces the “Heartland Outdoors” magazine. Three additional jobs were created thanks to the loan. The city also made additional loans to four other small businesses in town. Those are just a few examples of the steps USDA is taking to give rural businesses tools to grow and create jobs ... and to confirm that “mighty oaks from little acorns grow.” For more information, go online to {rurdev.usda.gov/Business.html}. Colleen Callahan is the Illinois director for Rural Development.

Don’t complain about farmers with your mouth full of food Editor’s note: Reprinted with permission from www.AgriPulse.com copyright Agri-Pulse Communications Inc. In just about every walk of life, we look for ways to manage risk. Insurance protection is available to protect our families, our CHRISTY SEYFERT health, our homes, guest columnist and our vehicles. It only makes sense that insurance protection should be available to help farmers and ranchers produce something that everyone must have to survive: the nation’s food supply. Unfortunately, there are critics who like to complain with their mouths full, not thinking for a minute about where their food comes from. They criticize farmers and ranchers for being too successful, too wealthy, or too big, and believe the nation’s fiscal chal-

lenges should be balanced on their backs. But these attacks on crop insurance are direct hits to our rural economy and ultimately would take food off the table. U.S. farmers and ranchers provide food, feed, fuel, and fiber to families across this country — regardless of size or income level. Shouldn’t we provide them access to crop insurance in the same manner? Drought, hurricane, tornado, flood — no matter the region or crop, unpredictable weather conditions impact every farmer and rancher, and, therefore, every single American, in some way. The problem is most people don’t realize the impact that crop insurance has on their lives. Our nation’s farmers produce different crops, using different techniques with unique risks. U.S. House Agriculture Committee Chairman Frank Lucas recently made one

“Public relations and how consumers view producers and their (farming) techniques.”

Editor’s note: Kay Shipman asked FFA members attending the State FFA Convention for the most challenging agricultural issue facing their generation.

Drew LaKamp Senior New Berlin FFA

ance, crop insurance is a product selected in advance and tailored to the individual producer’s needs. Senate Agriculture Committee Chairwoman Debbie Stabenow put it well: “Crop insurance is insurance, and the farmer gets a bill, not a check.” It also requires a broad pool of participants to function properly. Given its complexity, the private sector is well suited to deliver products and indemnities in a timely manner. Unfortunately, critics have filed short-sighted amendments that would return us to the days of 100 percent taxpayer-funded ad hoc crop disaster assistance and government delivery of crop insurance. In short, these amendments to impose means testing, cap premium support, and cut private sector delivery create barriers to participation and jeopardize crop insurance protection, which is necessary for securing operating credit and producing

our nation’s food supply. The transition away from traditional price and income support programs saves taxpayers $18 billion in the House farm bill proposals, and few tools remain to assist farmers and ranchers in managing the unique weather and market risks they face. Crop insurance has emerged as the farm policy of the future. Farm groups, lending organizations, input suppliers, processors, conservation groups, insurance, and reinsurance organizations have clearly stated their support for crop insurance. They know where the food on their plates comes from and you certainly won’t catch them complaining with their mouths full.

“Adapting to all the new technology in agriculture. It’s changing so fast.”

“Not being able to raise as much livestock to feed people.”

“Getting into the job field you want will be difficult because the unemployment rate is high.”

Bianca Wilwohl Senior Iroquois-West FFA

Makayla Trone Sophomore Monmouth-Roseville FFA

Taylor Zirkle Senior Iroquois-West FFA

important point: “Despite these differences, our farmers have at least one thing in common: a belief that crop insurance is a vital risk management tool that must be preserved.” Recognizing that crop insurance is key both to food security and the financial stability of rural America, the House and Senate Agriculture Committees crafted provisions to strengthen and enhance crop insurance. With more than 282 million acres protected at a cost of about 2.3 cents per meal, crop insurance is a sound investment for consumers, farmers, and taxpayers. More than 20,000 jobs are tied directly to crop insurance, but the reach is much broader: one study found crop insurance saved 20,900 off-farm jobs and generated $2.2 billion in off-farm economic impact in four states alone. As with other lines of insur-

Christy Seyfert is vice president of federal affairs for the Crop Insurance and Reinsurance Bureau.


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