FarmWeek June 25 2012

A disCussion about farming, ranching, and food brought together the agriculture and entertainment industries in Los Angeles last week. ........................................3

PeACh hARvest started early in Southern Illinois, and early apple varieties are being picked in Central Illinois. Some orchards, however, did not fare well this spring. ......................4

the RePoRt CARd on the performance of ag rail shippers generally was favorable in a survey conducted by the Soy Transportation Coalition. .................................9

Monday, June 25, 2012

Two sections Volume 40, No. 26

IFB ‘fairly successful’ in Senate farm bill action

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

The Senate last week set the stage for what ag leaders hope will prove timely House action on a 2012 farm bill, setting down the basis of a new farm program but raising concerns about possible new crop insurance requirements.

In what Illinois Farm Bureau President Philip Nelson called an admirable bipartisan effort, Senate leaders raced through 73 proposed amendments to pass a farm bill package 64-35. “We had a busy couple of days” watching and weighing in on individual issues, he related.

Nelson hopes a farm bill can move to a House-Senate conference by August. “Hopefully, we’re going to get everyone to work together, and we’ll have a farm bill before the election,” he said Friday.

Agriculture “did its fair share” as part of a measure that would trim $23 billion in total ag spending over the next 10 years, Nelson argued. The five-year, nearly $500 billion Senate bill would cut farm subsidies and conservation spending by roughly $2 billion a year and consolidate 23 conservation programs into 13.

The plan proposes a new Agricultural Risk Coverage (ARC) program covering crop losses in the 79-89 percent range, as well as efforts to strengthen current crop insurance protections.

It maintains what the American Farm Bureau Federation called a “viable” commodity marketing loan program and funding for the Environmental Quality Incentives Program important to livestock farmers.

“We were fairly successful,” Nelson said. “I view this as the starting point. We needed to get a bill through the Senate to send a signal to the House that it needs to get ready.

“There might be some tweaking needed in the House, but we have the overall dynamics here. We have ARC in here as a revenue-based safety net; I think we’ve prioritized conservation programs.”

The House could shoot for long-term ag cuts more in the neighborhood of $35 billion,

he said. House Ag Chairman Frank Lucas (R-Okla.) indicated hopes of crafting a farm bill draft within the next month, but he faces pressure to delay farm bill debate until after ag appropriation measures are approved, effectively setting program spending levels.

In a recent meeting with Lucas, committee ranking Democrat Collin Peterson (DMinn.), and House Speaker John Boehner, Nelson perceived Boehner’s commitment to assuring development of a “solid number” for spending and planning ahead to avoid “a full-fledged floor debate.”

At the same time, the Obama administration has threatened to veto House ag spending measures amid concerns about financial oversight funding for the Commodity Futures Trading Commission and cuts in rural development, renewable energy, nutrition, food safety, and global food aid spending.

According to Nelson, “one

of the bigger disappointments” of Senate debate was approval of Springfield Democrat Sen. Dick Durbin’s proposal to reduce federal crop insurance

premium subsidies by 15 percent for farmers with adjusted gross income over $750,000.

See Farm bill, page 2

ALMOST HEAD-HIGH

Kathy Reinhardt, wife of Mercer County Cropwatcher Ken Reinhardt, stands among corn planted in mid-April. Knee-high by the Fourth of July has long since become passé, but if Mrs. Reinhardt ventures back into this field on July 4, it’s likely most of her 5-foot-6 height will be concealed. Mercer and Henderson counties were among the more fortunate last week, having received between 0.5 of an inch and 2.6 inches of rain. (Photo by Ken Reinhardt)

Congressman urges farm business tax ‘parity’ A Pike County landowner and a Peoria congressman have paved the way to resolving a pressing problem in producer tax “parity.”

Last week, U.S. Rep. Aaron Schock, a Peoria Republican on the House Ways and Means Committee, unveiled a measure designed to ensure farmers across the U.S. receive “equal fairness” from the Internal Revenue Service (IRS).

The Farm Tax Parity Act would amend IRS code to exclude farm rental income from self-employment taxes, making tax treatment equitable to that for any other business in which a property owner rents property to his or her own small business.

Currently, farmers who rent land to their own farming corporation are required to pay employment taxes on the rent they receive. In other industries, that rental income is treated as investment income not subject to self-employment taxes. For instance, a self-employed dentist who owns the building where his practice rents space doesn’t have to pay the tax on the rental income he receives as landlord.

That discrepancy continues to place farmers in financial jeopardy, and, Schock said, has prompted the IRS to target farm-

ers who rent land in states such as Illinois. Because of a recent court ruling, the IRS operates under a different set of rules in surrounding states such as Missouri and Iowa.

Illinois Farm Bureau President Philip Nelson hailed Schock’s proposal, Rep. Aaron arguing “it makes Schock absolutely no sense to us that there are different federal tax laws for farmers who happen to live on different sides of the same river.”

“I have heard from a number of my local farmers and Farm Bureaus that they are being aggressively and unfairly targeted by IRS audits on rental income,” Schock related. “All farmers in the U.S. deserve to be treated the same way and should not be discriminated against due to the location of their farm.”

The Schock measure arose as a result of concerns from a Pittsfield-area landowner whose farm corporation was being audited.

In a February letter to county, state, and national Farm Bureau leaders, she noted farmers in Arkansas, Iowa, Minnesota, Mis-

FarmWeek on the web: FarmWeekNow.com

souri, Nebraska, North Dakota, and South Dakota do not have to pay self-employment tax on cash-rented farmland, while “everybody else within the U.S. does.”

The federal Eighth Circuit Court, which covers those states, attempted to address the issue, arguing rental payments made to active farmers should be excluded from self-employment taxes if there is no requirement in the lease for the landowner to participate and rent paid was consistent with the leased property’s fair rental value.

The Pike County landowner’s lease included no material participation requirement.

However, since the ruling was not made in a tax court, it applies only to states within the Eighth Circuit. The IRS challenged the court’s decision, stating it would comply with it only within the Eighth Circuit’s jurisdiction.

Schock’s bill would equalize provisions across the U.S. IFB National Legislative Affairs Director Adam Nielsen said the measure should aid most family farms that receive rental payments under a corporate structure.

“It never made sense that a farmer should have had to pay self-employment tax on rents paid to that family farm corporation,” added Pike County Farm Bureau President David Gay. — Martin Ross

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

FarmWeek Page 2 Monday, June 25, 2012

Quick takes TAXING TIMES AHEAD? — A memo released last week by Congress’ Joint Committee on Taxation warns that unless lawmakers act before the end of the year to extend expiring tax provisions, many small business owners will find themselves owing the Internal Revenue Service big.

The committee cited estimates that in 2013, nearly 1 million business owners will have incomes that place them in the top two tax rates, 36 percent or 39.6 percent.

In addition, marginal rates for more than half of all farm or other “S” category corporations, partnerships, and small proprietors would go up.

Farm Bureau’s top tax priority for 2012 remains continuation of the current estate tax exemption of $5 million per person indexed to reflect land values, maintenance of spousal transfers, and an extension of the top estate tax rate of 35 percent. Also important to farmers are tax measures for renewable fuels, charitable food donations, and equipment depreciation.

EX-ELEVATOR OWNER SENTENCED — A Clinton County man whose company operated four elevators last week was sentenced to three years in a state facility, according to the Associated Press.

John Kniepmann, Breese, was the former owner and president of Grain Exchange LLC and Consolidated Exchange Inc. that operated elevators in Carlyle, Bartelso, Germantown, and Sandoval.

Earlier, Kniepmann was sentenced to serve 15 months in federal prison for mail fraud; he is to serve the prison sentences simultaneously. He also was ordered to pay more than $1.3 million in restitution.

Kniepmann had admitted he falsely increased a fire insurance claim and defrauded a lender by selling grain that was collateral for a business loan and then hiding the sale from the bank. The elevators were closed in 2008.

RAIL PROJECTS, GRANTS — Illinois was awarded a $10.4-million federal grant that will complete a package of funding for 15 rail projects in the Chicago area, Gov. Pat Quinn and U.S. Sen. Dick Durban announced.

The projects include new track and signal systems to ease freight, Amtrak, and Metra congestion.

The 15-project, $370-million funding package includes: $211 million from the state’s Illinois Jobs Now capital plan, $136 million from the Class I freight railroads, $10.4 million in U.S. Department of Transportation (DOT) grants, $12 million from the Illinois Commerce Commission, and $1 million from the City of Chicago.

The rail improvement program is being spearheaded by a partnership of the State of Illinois, the U.S. DOT, the City of Chicago, Amtrak, Metra, and the Class I railroads. To date, 14 project phases have been completed, reducing passenger and freight train delays. Another 12 are in construction with four more in the final design phase.

(ISSN0197-6680) Vol. 40 No. 26

June 25, 2012

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

FarmWeek is produced by the Illinois Farm Bureau.

FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

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

the farm bill

The Senate farm bill In addition to proposing a new revenue safety net program and strengthening crop insurance for growers), the Senate’s newly approved farm bill plan supports: • A reduction in Conservation Reserve Program enrollment from 32 million acres to 25 million acres nationwide.

• A dairy “margin protection” program designed to help dairymen cope with low milk prices and high feed costs.

• Nutrition reforms aimed at limiting “food stamp” benefits to groups such as lottery winners and college students with financial means.

The Senate proposed a $4 billion cut in food stamp and rejected efforts to restore those funds through crop insurance cuts.

• Efforts to speed broadband expansion in underserved rural areas.

• A “farm-to-school” program designed to

foster healthier student meals.

What didn’t get in: • An amendment by Sen. Jim DeMint (RS.C.) that would have made national checkoff programs voluntary. It lost 20-79.

• A proposal by Sen. Tom Coburn (R-Okla.) to reduce annual funding for the Market Access Program from $200 million to $160 million. It was defeated 30-69.

The program supports U.S. export promotion. The Senate also preser ved similar Foreign Market Development program funding and spending for specialty crop block grants used in marketing products domestically.

• An amendment by Sen. Bernard Sanders (IVt.) to authorize states to require mandatory labeling of biotech food products. The measure lost by a 26-73 vote.

Farm bill

Continued from page 1 IFB made its case against means testing, but Nelson noted budget pressure when the issue was debated on the Senate floor.

Also at issue is Senate inclusion of a proposal to place new conservation compliance requirements on crop insurance.

Osco grain and hog farmer Gary Asay finds key insurance amendments “concerning.”

While some argue income eligibility caps would help smaller far mers, restrictions on premium supports instead could reduce the overall “pool” of insurance users, to the detriment of all growers, Asay told FarmWeek.

Acknowledging southern U.S. concerns about the pending elimination of farm direct payments under the plan, senators also approved insurance-style options for cotton

Tuesday: • Ag Weather with Jim Angel, state climatologist • Joe Kath, Illinois’ endangered species manager • Dr. Priscilla Rogers, program manager, VisionAware at the American Foundation for the Blind Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Mary Boote, executive director of Truth about Trade and Technology Thursday: • Illinois Corn Growers representative • Keith Brannan, Country Financial’s vice president of financial security planning Friday: • Harry Cooney, energy risk management for GROWMARK • Dale Durchholz, AgriVisor

growers. The Senate also spared decades-old sugar programs.

The House likely will focus on drafting commodity programs that will satisfy both Midwest and southern lawmakers, Nelson suggested.

That could prove a tough battle: Sens. Mark Pryor (D-Ark.) and John Boozman (R-Ark.) objected to Senate expansion of crop insurance, which Boozman said is geared toward regions where yield risks are high and biased against rice growers who use irrigation heavily.

One of what Nelson called the “pluses” in Senate debate was rejection of

an amendment which proposed new restrictions on poultry production and housing.

Nelson was uncertain whether the so-called “eg g bill” would resurface in the House debate.

“It still possibly could pass in the Senate as a bill in itself,” said Asay, a member of the National Pork Producers Council board who markets roughly 9,400 hogs per year.

“The House doesn’t seem too likely (to approve it) either way.

“But we believe that if this bill passes for layer hens, the next step would be to go after the hog industry with regulations on how we raise our animals.”

Page 3 Monday, June 25, 2012 FarmWeek

markets

Farm Bureau, Extension collaborating on future ‘Meet the Buyers’ events

BY KAY SHIPMAN FarmWeek

Farmers in Northern and Central Illinois will have opportunities to explore new markets in late summer and fall. Illinois Farm Bureau and the University of Illinois Extension are planning more “Meet the Buyers” events in those regions.

“Meet the Buyers meetings have proven to be popular venues for farmers who want to make contact with the decision makers with grocery store chains and stores, foodservice distributors, health food stores, and restaurants,” said Cynthia Haskins, IFB manager of business development and compliance.

First on the schedule will be a Northern Illinois multi-county event Aug. 28 in the Highland Community College Conference Center, Freeport. The hosts include area county Farm Bureaus, IFB, and the U of I Extension.

Farmers will have an opportunity to hear from and meet grocery, foodservice distributors, and direct-to-consumer distriFarmWeekNow.com bution buyers, among others. A More information about the special chef-farmer networking ‘Meet the Buyers’ event is avail- reception will take place in the able at FarmWeekNow.com. afternoon.

“There are a number of local restaurants that are already connecting with local growers and others are exploring the possibility of using local produce.

“We are excited to bring several of them together to meet local producers,” said Margaret Larson, director with U of I Extension for Jo Daviess, Stephenson, and Winnebago counties.

“In addition, U of I Extension educator John Pike has presented at a number of related programs in Northern Illinois, and we look forward to his presentation about commercial readiness and Good Agricultural Practices (GAPs),” Larson added.

“We see this as a great opportunity to link the produce growers of our area with market opportunities,” said Bruce Johnson, Stephenson County Farm Bureau manager.

Farmers may attend the event at no cost, but they need to register by Aug. 24. To register, contact the U of I Extension by calling 815-235-4125 or go online to {http://web.extension.illinois.edu/jsw}.

A Central Illinois Meet the Buyer event will be Sept. 26 at the U of I Extension office, 700 S. Airport Drive, Springfield.

The hosts include Sangamon and surrounding county Farm Bureaus, U of I Extension, and IFB. Buyer participants will include grocery retailers, foodservice distributors, direct-to-consumer distributors, and restaurant chef buyers.

“As we see the expansion of farmers’ markets in the area it seems only natural that we would look for direct interaction with food distributors and retailers to showcase and make available the products of Central Illinois,” said Jim Birge, Sangamon County Farm Bureau manager.

“This is a great opportunity for farmers to make connections with buyers,” added Deborah Cavanaugh-Grant, Extension educator for local food systems and small farms, with U of I Extension in Logan, Menard, and Sangamon counties.

Farmers may attend at no cost but need to register by Sept.

24. To register, call the Sangamon County Farm Bureau at 217753-5200.

Extension website offers Japanese beetle news Japanese beetles are raising questions. To help supply answers, University of Illinois Extension educators Rhonda Ferree and Matt Montgomery developed a new website.

The website is a blog so the most current information can be posted.

The information is divided into several categories: homeowner news, agricultural producer news, and media news. It includes fact sheets, question-and-answer sheets, look-alike information, links, and more.

The beetle blog is online at {http://web.extension. illinois.edu/fmpt}. Click on the Japanese Beetle News link in the lower right column.

Addition, Japanese beetle information appears on Ferree’s Facebook and Twitter pages at {www.facebook.com/ ferree.horticulture} and {www.twitter.com/ilriverhort}.

Lee County Farm Bureau member Katie Pratt of Dixon, right, represents farmers during a panel discussion about agriculture and technology Thursday in Los Angeles. California Secretary of Food and Agriculture Karen Ross joined Pratt on the U.S. Farmers and Ranchers Alliance panel of experts. (Photo courtesy of U.S. Farmers and Ranchers Alliance)

Food dialogues join farmers, entertainment industry A discussion about farming, ranching, and food brought together the agriculture and entertainment industries in Los Angeles for two days last week.

Sponsored by U.S. Farmers and Ranchers Alliance, the event drew farmers, ranchers, academics, chefs, large restaurant operators, journalists, and executives from the entertainment industry.

Lee County Farm Bureau member Katie Pratt of Dixon represented farmers for a discussion of food, science, and technology. Pratt

won the 2011 Illinois Farm Bureau Young Leaders Discussion meet and was one of four finalists in the American Farm Bureau Federation’s Young Farmer Discussion meet.

Four panel discussions occurred over two days. In addition to the one in which Pratt participated, the other discussion topics were: pop culture and food production, Hollywood’s urban farm, and understanding how food is grown and raised.

For more information about the food dialogues, go online to {www.fooddialogues.com}.

Grants are available to help farmers’ markets take plastic A new USDA grant could triple the number of Illinois farmers’ markets capable of making electronic sales, potentially selling more fresh fruits and vegetables.

Recently, USDA awarded the state a $182,000 grant for a wireless Electronics Benefits Transfer project to expand sales of fresh produce to low-income people who use LINK cards for federal food assistance. The grant application deadline for farmers’ markets is July 9.

The wireless machines also will accept conventional credit and debit cards, Sheila Simon potentially expanding sales to all customers, said Lt. Gov. Sheila Simon, chair of the Governor’s Rural Affairs Council.

“When I go to the grocery

store, I use our debit card,” Simon said.

Many consumers prefer electronic shopping and don’t carry cash, Simon noted. The wireless machines would help vendors at farmers’ markets access those types of sales, too, she added.

Currently, 50 out of 300 farmers’ markets across Illinois use wireless machines.

The grants could expand electronic transactions to another 150 farmers’ markets, she estimated.

Simon speculated cost is a main reason more farmers’ markets don’t offer electronic sales. “Most farmers’ markets run on a shoe-string budget,” she said.

The grant program is being administered by the Illinois Department of Human Services and the Illinois Department of Agriculture (IDOA) with support from the lieutenant governor’s staff.

Eligible farmers’ markets must obtain certification to accept federal food assistance benefits. The grant program will reimburse markets for the cost of a wireless machine, activation fees, and wireless service up to a maximum of $1,200.

IDOA and the lieutenant governor’s staff will provide markets with information about using and promoting wireless machines. In addition, a training webinar will be provided Wednesday and recorded for online viewing.

To study the impact of electronic sales on farmers’ markets, researchers at Southern Illinois UniversityCarbondale will collect data and conduct market surveys.

Their findings will be released late next year or in early 2014.

For more information about the program and grant applications, call 217-0524-9129 or go online to {www.agr.state.il.us}.

— Kay Shipman

FarmWeek Page 4 Monday, June 25, 2012

WEATHEr

Peach and apple harvest setting early pace

BY KAY SHIPMAN FarmWeek

Peach harvest started early in Southern Illinois, and early apple varieties are being picked in Central Illinois.

Around Illinois, fruit tree crops are developing at an accelerated pace, sparked by a warm spring which prompted early bloom. The tree fruit crop is as much as two weeks ahead of usual in some parts of the state.

In Calhoun County, Blake Kamp and his family began harvesting early peach varieties two weeks ago at the Hagen Family Orchard near Golden Eagle. He estimated the apple crop would be ready two to three weeks earlier than usual.

The family has 20 acres of producing peach trees and 35 acres of apple trees.

“It’s been good, real good,” Kamp said of the peach yields to date. “And the warm weather really helped open it (the apple crop) up.”

The Kamps’ orchard crops were not damaged by a midApril freeze; however, growers in other parts of the state were not as lucky.

Peoria County grower Kurt Christ estimated his apple crop will be reduced by 50 percent overall. “We’ve got an apple crop (but) not a big one,” said Christ, owner of Christ Orchard near Elmwood.

Christ Orchard raises apricots, plums, and 50 varieties of apples on 20 acres.

The family also operates a grain farm. Damage from an April frost varied among fruit varieties and whether a tree was growing on high ground or near a lake.

Last week, the Christ family nearly was finished harvesting an early apple variety they usually pick about July 4. They’ve already finished harvesting their sweet cherry crop and have started summer pruning.

“We’re doing July work in June,” Christ said with a chuckle.

Across the Midwest, fruit crop development is two to three weeks ahead of normal, according to Christ. He advised customer to contact growers about placing early orders, especially for favorite varieties.

The apple crop at Champaign County’s Curtis Orchard also will be earlier and lighter than usual due to the April freeze, but the impact and development vary among different varieties, according to Randy Graham, the orchard co-owner.

“We’ve already had customers put in their names for certain varieties,” Graham added.

Curtis Orchard is an 80-acre farm with more than 4,500 apple trees, 20 acres of pumpkins, and a country store.

In addition to an early, warm spring with an April freeze, recent growing conditions have been dry, but Graham said the dryness does have some benefits.

“The dry weather has kept disease pressure down,” he said. “Pest wise, we’re using less spray this year” for insects.

The weather also has helped the orchard’s construction project, a 2,800-squarefoot expansion to the store.

The new space will be used

Above: Chris Curtis, office manager of Curtis Orchard and son of co-owner Paul Curtis, shows a new 2,800-square-foot addition that will enhance school tours at the Champaign orchard. Dr y weather has helped the construction project move at a good pace.

At right: This Red Delicious apple was just starting to turn color last week at the Curtis Orchard n e a r C h a m p a i g n . Tr e e f r u i t crops are two to three weeks ahead of normal development due to an early, warm spring.

(Photos by Cyndi Cook)

to expand opportunities for school tours and to offer more products at the store.

Coles County grower Joe Moran emphasized the need for rain at Moran’s Orchard, near Trilla. Moran raises 10 varieties of peaches on about 8 acres and 20 varieties of apples on 25 acres. He also grows plums, pears, and strawberries.

Moran estimated he lost

about 80 percent of his peach crop and 75 percent of his apple crop due to the April frost. Some of the apples that survived are misshapen and will not bring a premium price.

They will be used to make cider, he said.

Moran also has seen early crop development. His strawberry crop was finished by the third week of May, not the first

week of June as it usual. Moran speculated he will finish picking his late-variety apples the first week of October, not the second.

Given weather issues across the Midwest and other fruitproduction areas, yield reductions will be reflected in the market.

“The price of fruit is going to be up this year,” Moran said.

Spider mites could be problem this season

WIU bull program accepting entries

The heat and dryness currently stressing crops and livestock could lead to the development of another issue this season.

The very dry conditions are encouraging the development of twospotted spider mites on droughtstressed soybean plants throughout much of the eastern Corn Belt, according to Purdue University.

And the outbreak could get bad enough that it could further reduce yield potential.

“Mites are found in every field, every year, and usually do nothing of consequence to producers,” said Christian Krupke, Purdue Extension entomologist.

However, amino acids are more available to insects when they feed on stressed soybeans instead of healthy plants.

“Under conditions where droughtstressed plants are abundant, mites thrive and quickly colonize large areas

Entries are being accepted for the 41st annual Western Illinois University (WIU) School of Agriculture’s bull test program.

Entries for the 112-day test are open to any breed and are due by Aug. 31, according to Ken Nimrick with the School of Agriculture.

However, bulls must be weaned and started on a preconditioning program no later than Aug. 17.

“The WIU Bull Test Program offers breeders the opportunity to compare their bulls against bulls from other breeders when fed and managed in the same environment,” said Nimrick.

“Our last five sales have posted record averages and totals. More than 70 percent of the bulls sell to repeat buyers, which is a testament to the program’s success and the buyers’ satisfaction. We’ve also worked hard at controlling costs in these difficult times and hope to improve on this, as

or fields where stress is more evident,” Krupke said.

If dry weather persists and mites are left unchecked or untreated, tissue death can occur. Once foliage is bronze, the damage is done and cannot be reversed, even with treatment, Krupke noted.

“To confirm the presence of mites, shake some discolored soybean leaves over a white piece of paper,” he said.

“Watch for small, dark specks moving about on the paper. Also, look for very tiny, fine webbing on the undersides of the discolored leaves.”

If mites are positively identified in drought-stressed soybean fields, a pesticide application typically is warranted, according to the entomologist.

However, farmers also will have to consider the economics of such action.

It sometimes takes more than one insecticide or miticide treatment to control mites.

well,” he said.

The WIU Bull Test Program evaluates the performance of bulls in a common environment and provides information on scrotal circumference, pelvic area, rib eye area, fat depth, and marbling.

The bulls also are indexed, so the breeder gets a substantial amount of information in an unbiased comparison.

At the conclusion of the test, a sale of the top bulls will be held March 15.

For more information about entering bulls in the program, contact Nimrick at 309-298-1288 or 309-3374352, or the WIU School of Agriculture office at 309-298-1080.

Entry forms for this year’s test, along with information on last year’s program, are available online at {www.wiu.edu/bulltest} or at {www.wiu.edu/cbt/agriculture/animalresearch/bull_test/index.php}.

Page 5 Monday, June 25, 2012 FarmWeek

livestock

Longtime IFB member promotes industry to Turks

BY DANIEL GRANT FarmWeek

Don Wood, 74, has been growing crops and raising livestock in Champaign County a long time (54 years).

And during that time, Wood has developed a strong appreciation for his customers, whether they’re local or foreign.

That’s why he jumped at the recent opportunity to host a trade delegation from Turkey’s Ministry of Agriculture. The delegation included Ferhat Selli, the deputy under secretary of agriculture in Turkey.

“It’s very important (to host trade teams and conduct farm tours),” said Wood, who has been an Illinois Farm Bureau member since 1957. “Any time a foreign country raises its standard of living, the first thing people want to do is buy more red meat.”

Wood, who runs Wood and Wood Feedlot in Champaign with his grandson, Andy Allen, produces a lot of red meat.

The Illinois operation (1,500 head) combined with a Nebraska feedlot allows Wood and Wood to produce about 2,000 cattle at its feedlots.

The operation has grown over the years. Wood and his father, Stanley, originally fed about 400 cattle per year.

“You’ve got to get larger to stay in business,” he said.

Wood also has adjusted to recent economics, particularly higher corn/feed prices, by changing the feed rations for this cattle.

The rations currently are comprised of a large portion of gluten, distillers grains, silage, hay, and corn screenings.

Wood talked about feed rations with the Turkish ag delegation. Under Secretary Selli, who did no media interviews on the trip, wanted to learn about American ag production with an emphasis on the Extension system, cooperatives, and subsidies, according

to David Headley of the Illinois Soybean Association, who hosted the trade team.

It also was an opportunity to promote Illinois ag products.

“It was an opportunity for us to showcase the soybean industry,” Headley said. “They import soy (in Turkey) and the forecast is they will increase soy imports. They’re also looking to increase beef production and beef imports.”

Wood believes Illinois is positioned to grow its livestock industry due to abundant local feed availability and lower transportation costs compared to some feedlots in the western U.S. He also believes meat demand will grow as the world population, including the middle class, continues to expand.

“I think we’re in position to increase livestock numbers in Illinois,” Wood said. “But profit and losses are what’s going to decide that. If there’s profit in it, somebody will do it.”

The Turkish delegation also

Don Wood points out some of the features of his cattle feedlot north of Champaign to Ferhat Selli, deputy under secretary of the Turkey Ministry of Agriculture, during a recent tour of his farm coordinated by the Illinois Soybean Association. The delegation from Turkey came to Illinois to learn about U.S. ag production methods, the Extension system, and government subsidies. (Photo by Daniel Grant)

visited the University of Illinois, a Central Illinois crop farm, a grain elevator, ADM in Decatur, and with govern-

ment officials and those from the American Farm Bureau Federation in Washington, D.C.

Poor pasture conditions Cattle prices could remain range-bound could limit growth of Midwest cattle herd Any plans of expanding the beef cow herd this summer or fall could evaporate soon across much of Illinois and the Midwest.

Pasture conditions, which were promising earlier this year, have deteriorated the past few months due to a combination of hot and windy conditions and below-average rainfall.

USDA last week reported pasture conditions have worsened considerably since May 1. The percentage of pastures rated poor or very poor nationwide increased from 17 percent on May 1 to 28 percent last week.

In Illinois, conditions are even worse. Last week, 33 percent of pastures in the state were rated poor or very poor, 37 percent were fair, and just 30 percent were good to excellent.

A month ago, (May 27) Illinois’ pastures were rated 58 percent good to excellent, 32 percent fair, and just 10 percent poor or very poor.

“I am concerned about the streams in the pastures running dry (this month),” said Ron Moore, a FarmWeek Cropwatcher from Warren County.

Authors of the CME Group Daily Livestock Report believe another year of hot, dry conditions will limit growth of the nation’s beef herd. Many herds were liquidated last year in Texas and Oklahoma due to drought and corresponding feed shortages.

“Record-high feeder prices have provided a significant incentive to hold back heifers and expand the beef cow herd,” authors of the report noted. “But that will be difficult, if not impossible, to achieve without adequate grass on the ground this summer.”

Fortunately, the early start to the growing season allowed a number of farmers to harvest a decent first cutting of hay.

Many already have started the second cutting.

“Normally we cut hay around Memorial Day, the Fourth of July, and Labor Day,” said Don Wood, a cattle producer from Champaign County. “Here, it’s not even the Fourth of July, and we’re already into our second cutting. It’s been a good year for hay so far.”

However, other farmers harvested just a fraction of their typical hay crop due to frost damage and other weather-related losses.

“Our hay wasn’t really good,” said Pete Tekampe, a Cropwatcher from Lake County. — Daniel Grant

Risk management could be as important as ever for cattle producers this summer.

Cattle prices are expected to remain bound within a range of $114 and $122 per hundredweight. Meanwhile, crop and feed prices could be all over the board depending on whether drought conditions ease or intensify, according to Chip Nellinger and Adam Dryer, risk management consultants.

Nellinger and Dryer of Blue Reef Agri-Marketing in Morton last week discussed the situation with cattle producers at the Illinois Beef Association’s summer conference in East Peoria.

“We want to sell at the high, but it’s more about protecting the risk,” Nellinger said.

He believes the cattle market put in its seasonal high ($130-plus per hundredweight the third week of February) and low ($114 the last week of May) about two weeks early this year.

If that is the case, the risk management consultant believes cattle prices likely will be bound this summer in a trading range between $114 and $122.

“We saw the big peak early in the year (followed by a large price drop in May),” Nellinger said. “Now we’re kind of in no man’s land going forward.”

USDA in its monthly cattle on feed report Friday estimated cattle and calves on feed as of June 1 totaled 11.08 million head, up 2 percent from the previous year.

Placements in feedlots totaled 2.09 million head, up 15 percent, while marketings

in May were 2.02 million, up 1 percent.

Cattle producers this summer could struggle to grow their herds, according to Jeff Beasley, a cattle producer from Creal Springs and president of the Illinois Beef Association.

Dry conditions have burned up pastures, reduced hay production, and could reduce corn yields and subsequently drive up crop/feed prices.

“A couple months ago (when USDA forecast record corn production) cattle feeders and cow-calf producers were optimistic we’d see lower grain and feed prices,” Beasley said.

“Now, it may be trending the other way.”

The IBA president said he already has seen a 60-cent perbushel increase in corn he purchased for feed.

“If we don’t produce a good

crop this fall, there will be a lot of risk out there,” he said Beef cow slaughter so far this year is down 9 percent compared to last year. But the smaller beef slaughter numbers have been offset somewhat by a 2.5 percent increase in dairy cow slaughter, which has been driven by high milk production and lower milk prices.

The situation could get more complicated for cattle producers if the drought cuts yields and drives up crop prices.

“A record yield of 166 bushels per acre (predicted last month by USDA) is not in the cards,” Dryer said. “The question is, when will USDA tell us? If the weather stays dry, it probably will push corn prices higher (and yield potential lower).”

Nellinger believes a variation in corn yields, from 150 to 160 bushels per acre nationwide depending on the weather during pollination, could be the difference between $6 and $7.50 corn.

Likewise, he said if the drought persists through the summer and limits soybean yields, $15 beans are not out of the question.

“With so much volatility, it’s really important to get more education about the (marketing) tools out there” such as packer contracts, futures, and options, Nellinger told cattle producers. “A lot of times you can use tools like that to limit risk and still have some upside.” — Daniel Grant

FarmWeek Page 6 Monday, June 25, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Another hot, dry week here in Northern Illinois. We did manage 0.35 of an inch of rain on Saturday, June 16, and 0.5 of an inch in other parts of the county.

It is a good thing we had that rain because for four days after that it was in the mid-90s each day with 30-plus mph winds drying everything out. Lots of second-crop hay was put up last week with no rain. I don’t know of any wheat that has been combined in this area, but there probably will be some this week. The corn and soybeans are “hanging in there” during this hot, dry spell. Time will tell if we have lost any yield potential, but we are getting closer and closer to the critical time for corn pollination with no reserve of moisture in the soil.

Pete Tekampe, Grayslake, Lake County: Another hot, dry week in Lake County. We got 0.5 of an inch of rain Sunday (June 17) morning and it was all dried up by mid-afternoon. The temperatures were in the 90s most of the early part of the week. It cooled off Thursday and all we got was a sprinkle a couple of times. Corn is really showing stress and the beans are just hanging on. Winter wheat will be ready later this week. No rain is in the forecast. I hope they are wrong. It’s getting very critical.

Leroy Getz, Savanna, Carroll County: Rain on Saturday, (June 16) was 0.5 of an inch, bringing June’s total to 1 inch. We get just enough rain to survive. The total now since April 1 is 8.95 inches. Crops look good from the windshield. Some fields show compaction problems and some insect problems, including a new centipede that was never seen before. Spraying of soybeans was difficult with the high winds early in the week. I did see some potatoes being dug at the potato farm south of Savanna. Our growing degree units now total 1,104, which would put our crop near the tasseling stage.

Ryan Frieders, Waterman, DeKalb County: It has been hot, hot, and hotter here. The winds have been constant. Luckily, we received 0.6 of an inch of rain Saturday night (June 16). We have received one half of our normal amount of precipitation for the year. It is very dry and the crops show signs of stress every day.

The soybeans are much shorter than they should be for their age, and the corn is stunted from a lack of rain as well. The weeds are the only plants that seem to be growing well.

Larry Hummel, Dixon, Lee County: The odds of getting an average corn crop are starting to slip away. Another week without rain has crops stressed, but cooler temperatures late in the week eased the concern a little. Some fields, though, are still rolling up in the middle of the day, even with temperatures in the low 80s. The rallying grain prices have put a nick in the basis levels, but they are still very high historically.

Ken Reinhardt, Seaton, Mercer County: Rain last Saturday night (June 16) amounted from 0.5 of an inch to more than 1.5 inches in my county. I had 2.6 inches where I farm in central Henderson County, along with high winds.

Crops have really responded to the moisture. Corn planted the first week in April is close to tasseling.

There is no lack of nitrogen this year, as all the corn has an excellent color. The custom sprayers were busy with replanted corn and getting over all of the soybeans.

Ron Moore, Roseville, Warren County: We received 1.6 inches of rain on June 16. It was a very welcome gift for Father’s Day. On June 20, the first tassels started to appear on our corn. That is at least two weeks earlier than normal. The 15-inch-row soybeans have closed in the rows and the 30-inch ones will be there this week. The rain really made the beans start growing again. The dry weather has reduced our expectations, but the crops still look good in this area. Post-spraying of soybeans should finish up this week. No insect pressure to note, but we continue to scout. Pasture conditions have improved with the rain as well. The streams are still flowing but an extended dry period will cause more concern for both crops and livestock.

Jacob Streitmatter, Princeville, Peoria County: The crops were relieved with some muchneeded rain last weekend totaling just over 1 inch. It all dried up in a day or two and sprayers were back running strong. I would guess that the majority of the spraying is complete. Wheat harvest started in the area with the sand ground going first. The corn is rapidly approaching head height. The 15-inch soybeans have shaded the rows, but the 30s have a ways to go.

Carrie Winkelmann, Tallula, Menard County: We received 0.4 of an inch of rain Sunday (June 16) to make that our total rainfall for the month.

We could really use a rain. Corn has just started to send up tassels. Japanese beetles have made their presence known as well, and diligent spraying has been imperative for garden plants, as well as ornamentals. My assistant crop scout, Lydia (baby daughter), says we really need a substantial rain.

Tim Green, Wyoming, Stark County: Woke up Sunday morning (June 17) to about 1.4 inches of rain at the main farm. A mile and a half to the north of that farm, we had 0.5 of an inch.

The southern part of Stark County got rain, but the northern part was dry again. We will take what we got and appreciate it, but a little more would be greatly appreciated.

Corn in the northern part of the county on Monday (June 18) and Tuesday started showing stress again. The wind and 90-plus degrees were hard on things. Some farmers are mulling whether to spray for Japanese beetles in the beans. I would assume populations will get heavier.

Tom Ritter, Blue Mound, Macon County: Rains a week ago left us with our biggest, measurable rain since midApril, but it totaled only 0.4 of an inch. Rains this last week tended to pass us by with not even a measurable trace.

Needless to say, we still remain dry, but the lower temperatures are helping a little bit. Corn is not 50 percent tasseled, but it is tasseling — especially the March-planted corn. The other will be tasseling by mid-week. Soybeans continue to grow. Spraying has been done.

Weed control and insect control have been adequate at this point, but it will be monitored, especially with the dryness. We don’t need any extra stress on the crops.

Mark Kerber, Chatsworth, Livingston County: A rain across the area sure perked things up around here a week ago. Soybeans are finally growing. Three days of 95 degrees and wind, though, dried us out again. The forecast is for 10 days of dry weather — not good in a year where timely rains are needed. Even with early planting and plenty of heat units, corn is going to be short this year. The drought of 1988 keeps coming up in conversations. Fairs and benefits are starting, as the summer is here. I’m hearing reports of good yields in the wheat harvest. It’s plenty early for double-crop soybeans if one has moisture. Markets have rebounded with the dry weather.

Ron Haase, Gilman, Iroquois County: Rain arrived last week to help survive the heat. On Saturday (June 17), we received from 1.1 to 1.5 inches of rain.

Areas near Kankakee received excessive amounts of rain and were subject to flooding. During the week, corn plants continued to roll their leaves to preserve moisture in the heat. Thursday, a light shower of 0.05 to 0.75 of an inch of rain was measured on our farms. The corn plants funneled this moisture down to the base of the stalk. As corn approaches pollination, and a greater demand for water, our top soil continues to be dry. As the site for our new shed was being stripped of the sod, you were not able to tell that we had received an inch of rain. The dust was blowing in the wind. Area soybean development ranges from the V1 growth stage up to the V5 growth stage. Japanese beetles made their annual appearance last week. The local closing bids for June 21 were: nearby corn, $6.21; new-crop corn, $5.25; fall 2013 corn, $5.04; nearby soybeans, $14.35; newcrop soybeans, $13.46.

Steve Ayers, Champaign, Champaign County: Last Saturday night (June 16), some area farmers received an early Father’s Day present in the form of 0.8 of an inch of rain. Thomasboro won the rain prize with 2.1 inches, while many farmers received 0.1 or less. It cooled off into the mid80s with a chance of rain Friday, June 29. Corn looks good considering the dryness, and beans still keep popping up. As we move closer to tassel, the dryness is really going to be a test of corn varieties.

Wilfred Dittmer, Quincy, Adams County: Summer has officially arrived and we are still very short on moisture in most areas.

Our gauge picked up a massive 0.35 of an inch of rain last Sunday (June 17) while areas in the northern parts of the county got upwards of 3 inches. Corn is doing its best at or near tasseling and beans are making the best use of every drop. Wheat yields ranged from 50 to 70 bushels per acre, according to reports.

Mowing and general chores are the work being done in our neck of the woods.

Todd Easton, Charleston, Coles County: As we celebrated Kelly’s birthday around the campfire Saturday night (June 16), the radar showed a good-looking storm front headed right for us, but it went around us, leaving nothing in the fields. Thursday’s forecasted rains seemed to be doing the same thing, but we got 0.15 of an inch.

Now with no rain in sight, producers’ optimism is fading fast. The earlier-planted fields are producing tassels and silks in an attempt to pollinate even before reaching normal height. Hopefully, the weather will cooperate with some reasonable temperatures so we can at least get decent pollination over the next couple of weeks.

Soybeans are at the V3 – V4 stage and having trouble closing even the narrow rows. The wheat crop is in the bin with producers reporting yields in the 70s and lower 80s, which is a little better than average. Many went ahead with double-crop bean planting and will need a rain to get them to come up. I guess for now we will continue the rain dances and hope the pattern changes.

Jimmy Ayers, New City, Sangamon County: We received no rain last week. The corn suffered for a few days.

Drilled beans have canopied, and the 15-inch beans are closing the row now. Some of the 30-inch beans are struggling to get a good canopy. Really not a whole lot of activity last week.

Some of the beans are being finished up spray-wise.

Doug Uphoff, Shelbyville, Shelby County: Dry, dry, dry. We received two drops on a brick last week. In other words, not enough to register or qualify as a rain.

They took 40 cents off of corn prices last week. The reason I got when I did some calling was, “They are losing 13 cents a gallon on gasohol production, the world economy is in the tank, and outside markets are down, among other things.”

That’s according to elevator managers in Decatur. The crop looks good and temps are down, but we seriously need a rain. Crop ratings of good to excellent are falling fast.

Indiana is in the 35 percent range and ours are in the mid-50s. Corn is 5 feet tall and ear shoots are only 2 to 3 feet off the ground.

Beans are V6 and 12 inches tall. It is serious, but I am sure Southern Illinois is far worse off.

David Schaal, St. Peter, Fayette County: Not a lot to report here, other than hot and windy. Missed our chance of rain on Thursday. Some of the corn is starting to roll up pretty tight in the heat of the day. No insects or pest problems, other than Japanese beetles are pretty heavy in some places. We’re sure hoping for some water, but none is in the forecast.

Page 7 Monday, June 25, 2012 FarmWeek

CROPWATCHERS Jeff Guilander, Jerseyville, Jersey County: Well another week and just enough rain to sustain us a little longer. Monday (June 18), most of us got another 0.5 to 1 inch of rain. It did jump start the later corn and now half of the corn is trying to pollinate.

Spraying is the concern right now. Apparently the weeds hardened off early this year making glyphosate more of a simple grass killer. The other chemicals used did a good job burning the broadleaves down to the last 4 inches or so but failed to kill them completely. What we have now is a bunch of damaged and angry weeds. The rates and treatments I am hearing are experimental and costly with no guarantees. Fungicide is also a problem with the uneven fields leaving most of us to wonder if it is worth trying. Overall, with the temperatures and wind in the last week, this crop lost some ground, and it just doesn’t look like it is going to get easier any time soon.

Dan Meinhart, Montrose, Jasper County: Another very dry week. It has been very hot and windy. The March-planted corn is beginning to tassel. Some of the tasseling fields are very short due to lack of moisture. Spraying of post-emerge chemicals has been pretty well completed except on the late-planted beans. Hay baling continues. Rain is desperately needed but none is in the forecast. Temperatures are expected to be more moderate this week.

Rick Corners, Centralia, Jefferson County: One hundred sixty-six-bushel-per-acre corn average? At this point, I don’t know if this whole county will make that much. Another week with no rain and high winds.

Enough said.

Dave Hankammer, Millstadt, St. Clair County: This past week was another mostly dry and warm one. Some rain showers passed through the area late evening on June 17. Rainfall amounts varied from 0.2 to 0.4 of an inch in the county.

Temperature highs for the week were in the mid-90s with low humidity. On the bright side, we finally received enough moisture to germinate seed in the dry, bare areas of both corn and soybean fields. There was enough plant emergence to change decisions to replant these areas that have been bare for three to four weeks. Corn planted in early April is starting to tassel. There was a report of corn in the southern part of the county being 4feet tall and tasseling. This is an area of the county which has received very little rain since the beginning of April. Soybean plants are approximately 6 inches tall and farmers are post treating these fields for weeds.

Water hemp is the obvious weed in many fields, and it’s amazing how quickly this weed will grow despite the dry conditions.

Herbicide application has been a challenge due to the high winds. Double-crop soybean planting went as quickly as wheat harvest.

Plant emergence is going well due to the much-needed rain at the time of planting.

Continue to pray for rain.

Kevin Raber, Browns, Wabash County: No rainfall this past week. Crop conditions look decent first thing in the morning, but by noon the crops — corn especially — look rough. The double-crop beans that were planted are still lying in the dust.

Dean Shields, Murphysboro, Jackson County: We had another week of very dry weather in Jackson County. No rain.

Things are starting to hurt pretty badly. Not many of the wheat field beans are coming up. The corn is all twisted and not looking very good. About all we are doing right now is trying to spray some weeds, but they seem to still be growing. Some places the corn looks fairly decent yet; other places, not so good. We need a rain really badly.

Randy Anderson, Galatia, Saline County: Hot and dry — cooler and dry — it’s all the same here. The corn crop, you could say, is over with. And if there is no rain in the next 10 days, there is not going to be much to the soybean crop, either. Any small patches of grasses or water ways that are mowed are being cut for hay this year. The thing that worries me now is the fire danger.

Ken Taake, Ullin, Pulaski County: Dry weather continues to be the main story here in Souther n Illinois.

While we did receive 0.2 of an inch of rain in a sur prise shower on Father’s Day, which was ver y welcome, it still remains very dry. Corn is trying to tassel. Beans are just struggling. It doesn’t seem like anything is really growing very well, except for the weeds. Weeds always seem to grow well. I guess we will really get to see how the new varieties respond to drought conditions.

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

Crop conditions plummet; summer forecast not promising

BY DANIEL GRANT FarmWeek

Crop conditions in Illinois continued to decline last week despite brief relief provided by rain showers June 16 and 17.

Many areas in a wide swath of Illinois, from Peoria to

FarmWeekNow.com Learn more about Illinois’ crop conditions by visiting FarmWeekNow.com.

Champaign up to Kankakee, received about an inch of rain while isolated areas in Northern Illinois reportedly received as much as 3 to 4 inches.

“Some areas got a muchneeded boost,” said Josh Darr, meteorologist with Chesapeake Weather Services. “It bought about a week to 10 d ay s ’ i n s u r a n c e ” f o r c r o p development.

Unfortunately, rainfall was

not widespread enough to improve crop conditions in the entire state. And no substantial rainfall fell to ease abnormally dry and drought conditions in Southern Illinois.

And the forecast for the first part of summer, which officially began last week (June 20), is not promising.

“It looks like we’ll continue to see stressful conditions for corn and soybeans the next 30 days,” said Darr, who will be a featured speaker July 25 at the Illinois Far m Bureau Commodity Conference at the Bloomington-Normal Marriott Hotel and Conference Center.

“There’s no rain in the foreseeable future and (the dryness) could be accompanied by heat and windy conditions that would dry down the topsoil even more.”

Topsoil conditions after the rain event last week were rated 24 percent very short, 46 percent short, 29 percent ade-

quate, and just 1 percent surplus.

The portion of the crops rated good to excellent from May 27 to June 18 declined from 66 percent to 52 percent for corn and from 60 percent to 47 percent for beans.

Meanwhile, the portion of the crops rated poor or very poor increased from 6 percent to 13 percent for corn and from 6 percent to 14 percent for beans.

“The crops are showing the effects of the lack of rainfall and high temperatures,” IFB President Philip Nelson told t h e R F D R a d i o N e t wo r k .

“Some of the cornfields look like pineapple groves and some of the beans have gone dormant.”

The situation is starting to give some farmers flashbacks to other drought years such as 1988, 1991, and 2005.

The epicenter of the drought in the Corn Belt so far

this season is Fort Wayne, Ind., according to Darr. He said that area so far this season has received less rainfall than it had at the same point in 1988.

“We don’t want a repeat of ’88 and ’91,” said Bob Nielson, Purdue University Extension corn specialist. “It’s not a disaster yet. We still have oppor-

IFB Commodity Conference slated July 25 Farmers and other ag professionals next month can learn about the latest trends and issues affecting farming at the Illinois Farm Bureau Commodity Conference.

The annual conference will be July 25 at the Bloomington-Normal Marriott Hotel and Conference Center.

The theme of the event is “Agriculture: The Biggest Winner.” General and breakout sessions will focus on topics such as international trade, markets, communicating with consumers, weather, land rights, cover crops, locally grown foods,

and on-target spray applications.

“We have an excellent group of speakers on a wide range of topics,” said Tamara Nelsen, IFB senior director of commodities. “There will certainly be something for everyone at this year’s event.”

Pre-registration can be done online through July 16, at {www.ilfb.org}. Participants also may register for the conference at their local county Farm Bureau office or by calling Nicole Moore at 309-557-3343 or by e-mailing her at nmoore@ilfb.org.

Registration is $35 per person and includes lunch.

tunities to recover (if the Corn Belt receives timely rainfall).”

Darr agreed that rainfall events in coming weeks will be critical.

“More so than other years, timely rain events in July will determine corn yields (as the crop enters pollination) and potentially bean yields,” he said.

FarmWeek

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Wednesday at 10 a.m.

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FarmWeek Page 8 Monday, June 25, 2012

liveSTOck

Co-products could play larger role in feed rations

BY DANIEL GRANT FarmWeek

Cattle producers for economic reasons have increased the use of co-products, such as distillers grains and soy hulls, in feed rations.

Prices last week averaged $225 per ton for distillers dried grains (DDGs) and $170 per ton for soy hulls and corn gluten compared to $230 per ton for corn.

“The dynamics of our industry have changed,” Dan Shike, University of Illinois animal scientist, said last week at the Illinois Beef Association’s summer conference in East Peoria. “Ethanol production has made corn more expensive, but there also are new opportunities.”

Shike noted that every bushel of corn converted to ethanol creates about 18 pounds of distiller grains. He estimated this year the U.S. will produce about 45 million tons

of DDGs. Co-products this year could be even more vital to balance feed rations.

Drought and abnormally dry conditions Jeff Beasley in large portions of Illinois and the Midwest currently are threatening corn and soybean yields, hay production has diminished, and pasture conditions are deteriorating by the day.

“We’re seeing a third to half the hay crop we normally would because the drought has turned pretty severe the last couple months,” said IBA President Jeff Beasley, a cattle producer from Creal Springs in Southern Illinois’ Williamson County.

Beef producers who have less hay or poor-quality pastures can extend the grazing season by using co-products as

feed supplements, Shike noted.

He recommended the use of co-products where grass has been burned up in recent weeks by heat and dry conditions.

“Co-products are an excel-

Midwest,” Shike said. “I know there’s not a lot of fences up around cornfields anymore, but it doesn’t take much. A little hot wire, and you’re in business.”

Storing co-products can be a

longer shelf life, while large operations can take advantage of wet distillers grains, which must be incorporated into rations quickly to avoid spoilage.

“Co-products are an advan-

‘The dynamics of our industry have changed.’

— Dan Shike University of Illinois animal scientist

lent feed for beef cattle, especially when you have a forage base,” he said.

Producers also can extend the fall grazing season by putting cows on cornstalks and incorporating co-products into rations.

“Grazing on cornstalks, I believe, still is one of the most under-utilized resources in the

Learn to Shine with IFB’s Young Leader Discussion Meet Friendly Competition That Builds Your Leadership Skills Show your art of discussion for hot agricultural topics - and compete for great prizes, including a chance to represent Illinois in the National Discussion Meet.

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Additional State Topics:

What can be done to encourage young farmers and ranchers to return home to the farm if it means living in a rural area that does not provide the same amenities (education, health care, technology) as a metropolitan community?

Certain sectors of agriculture are labor intensive and rely heavily on immigrant workers. What is a fair and balanced immigration policy?

How should Farm Bureau help prepare its members-both young and old--for transferring operations to the next generation of farmers and ranchers? What is Farm Bureau’s role in encouraging more transfers?

How can Farm Bureau play a role to ensure the viability of quality agricultural education programs within our schools?

How do we reach out to associate members to provide value to their membership?

challenge. But bagging it or constructing feed bunks can greatly reduce the amount of loss.

Shike also recommended producers with smaller operations use DDGs, which have a

tage we have here in the Midwest,” he added. “They are an excellent supplement for grazing.”

A list of co-products and plants in Illinois is available online at {http://illinoisbeef.com}.

Illinois beef producers win awards The Illinois Beef Association (IBA) last week during its summer conference in East Peoria named its three top award winners for the year.

Wildberry Farms, Hanover, won the Seedstock Breeder of the Year Award. The award is presented to purebred beef cattle firms that supply genetics of the future and use the latest technology in seedstock breeding. Wildberry Farms is owned by Jim and Ann Berry.

Quarter B Farms, Pleasant Plains, won the Commercial Producer of the Year Award. The award is presented to performance-oriented commercial cow-calf operations that use the latest breeding, management, and forage production to optimize production and profitability. Quarter B Farms was started by George and Nancy Bunn. Cal Jillson is the cattle manager.

Larson Farms Partnership, Maple Park, won the Environmental Stewardship Award. The award is presented to conservationminded beef cattle producers who showcase the stewardship and business practices that exist together on progressive farms.

Larson Farms was started in 1953 by Ray and Carol Larson.

There currently are eight members and three generations of the family involved in the operation.

NOT SO FUNNY

Entry Deadline August 1 (to Illinois Farm Bureau) Contact your county Farm Bureau® for eligibility and contest information.

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August August August August August August August August August August August August August

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For more details or list of prizes - www.ilfb.org/youngleaders

YL708T2

Steve Ayers, the Cropwatcher from Champaign County, maintained his sense of humor last week as he showed his bone-dr y rain gauge. The situation is getting critical farther south in the state, with some farmers facing tearing up thousands of acres of burnedup corn as the drought persists.

Page 9 Monday, June 25, 2012 FarmWeek

transportation

Agricultural rail satisfaction up in key areas

BY MARTIN ROSS FarmWeek

Ag rail shippers have offered a “positive referendum” on the performance of rail carriers over a challenging past year, Soy Transportation Coalition (STC) Executive Director Mike Steenhoek told FarmWeek.

According to STC’s annual Railroad Report Card survey, the seven major Class I rail grain carriers posted a 3 percent increase in overall customer satisfaction over 2011. The coalition interviewed shippers regarding carrier “on-time” performance, customer service, and costs.

On average, shippers surveyed used five of the seven Class I’s over the previous 12 months. Carrier performance was especially noteworthy given last year’s Missouri/Mississippi River flooding and other weather-related events that

“really wrought some havoc on the rail industry” because of railbed issues, Steenhoek said.

Thanks to extensive planning, unexpected disruptions “didn’t catch the railroads flatfooted,” he said. In terms of coordination, rerouting of shipments, and customer communications, he likened carriers to “the military when there’s a major catastrophe.”

Equipment and material generally were in place for timely replacement of flooded/damaged tracks, he said. Steenhoek cited the “commendable” speed with which carriers rehabilitated and/or upgraded damaged tracks.

“It’s not lost on rail customers that if the federal government had had a greater role in the ownership, maintenance, or management of our rail network, we likely wouldn’t have been back up and run-

Groups push reforms as conferees tussle Major farm groups continue to seek fairness on the road, rails, and waters as House-Senate conferees struggle to meet a Saturday deadline for a new long-term federal highway bill.

“If one gets approved by the conference committee,” Soy Transportation Coalition Executive Director Mike Steenhoek stressed last week.

On March 14, the Senate passed a two-year, $109 billion bill, but the House so far has failed to pass anything beyond the current 90-day extension. House Speaker John Boehner (R-Ohio) suggests another six-month extension ultimately might be the best option “to move this thing out of the political realm that it appears to be in at this moment.”

Major ag groups have proposed a three-pronged emphasis for improving transportation via the highway bill: • Achieving “better balance” between rail customers and rail service providers. The ag groups urged Congress to require that the federal Surface Transportation Board provide more frequent reports on pending rail complaints and a more efficient process for dispute resolution.

Conferees were encouraged to ensure that the rail rate dispute process allow for higher financial awards to shippers who demonstrate that unreasonable rates are being imposed. Steenhoek noted efforts aimed at ensuring damages in rate disputes justify filing a complaint, cover shipper costs, and discourage questionable carrier practices.

Currently, small, medium, and large rate relief cases carry proportionate filing fees and maximum awards. “Even if you have deep pockets as a company, are you going to file a rate case that’s going to cost $50,000, if the maximum you can recover is $100,000?” Steenhoek asked.

• Hours-of-service exemptions for agriculture. The groups called on Congress to clarify Federal Motor Carrier Safety Administration guidelines for transportation of ag commodities across state lines where both states are in compliance with ag hours-of-service exemptions. That means the driver is within an allowed mileage radius and state-designated planting and harvesting dates.

• Approve “maritime” provisions that ensure funds paid by users into a Harbor Maintenance Trust Fund are used exclusively for dredging and maintenance of U.S. ports and waterways. The fund is funded via a 0.125 of a percent tax on the value of imports and domestic cargo arriving at ports with federally maintained harbors and channels.

The fund collects $1.3 billion to $1.6 billion annually, but about half of those revenues are spent on projects unrelated to harbor maintenance. A $6.1-billion surplus in the account already has been allocated for project use. — Martin Ross

ning as quickly,” he said.

To a certain extent, grain customers in recent years have benefited from a recession-driven decline in commercial freight shipments. Steenhoek was uncertain about the impact economic recovery could have on future rail resource availability and on-time performance.

STC plans added study regarding the investment necessary to meet prospective agricultural rail needs. “A number of fundamentals seem to show that

we’re going to need increased capacity,” Steenhoek said.

And individual customer complaints continue to surface.

The STC survey noted concerns about “accessorial charges” — extra costs such as switching fees imposed when freight is moved from one track to another or “overweight fees” related to ice accumulation on individual cars.

Steenhoek nonetheless sees growing customer confidence in the federal Surface Transportation Board (STB), which

mediates disputes between shippers and carriers. Where in the past the STB often was perceived as biased toward carriers, shippers are seeing the agency “instituting a more balanced playing field,” he said.

“There’ve been a number of decisions made over the past couple of years that the rail industry fought but where the board ruled in favor of the customer,” he emphasized. “Some were quite meaningful — there were some teeth in them.”

RATING THE RAILS For the second year in a row, Union Pacific scored the highest among grain shippers on the Soy Transportation Coalition’s (STC) carrier “report card,” with a 5 percent increase in customer satisfaction over last year.

Burlington Northern Santa Fe (BNSF) ranked second in an 11-question survey of rail shippers of various scales and sizes, with a 4 percent gain. CSX moved from fifth place to third this year, with a 6 percent increase in satisfaction.

Norfolk Southern ranked fourth with a 4 percent rise in satisfaction; fifth-ranked Canadian National Railway’s rating was unchanged.

Kansas City Southern posted a 4 percent decline in satisfaction, though STC noted only 44 percent of respondents used the carrier over the past 12 months.

Canadian Pacific Railway once again ranked last, though it posted an 8 percent rise in customer satisfaction.

Class I carriers are defined by their operating revenue, with smaller railroads grouped as Class II or III carriers.

Union Pacific also rated first in terms of ontime service for ag shippers and customer service. Kansas City Southern, Union Pacific, and Canadian National Railway offered customers

the tightest timetables for freight arrival or delivery — between four to eight or eight to 12 hours.

Canadian National Railway, CSX, and Union Pacific in that order ranked the highest in rapid resolution of service problems. Union Pacific, CSX, and Norfolk Southern reportedly provided the most reliable round-the-clock service.

Union Pacific and BNSF provided the most thorough customer information on tariffs, prices, tracking, billing, and rail car information.

Shippers viewed Union Pacific, Canadian National, and CXS costs as most commensurate with their services. BNSF, Norfolk Southern, and Kansas City Southern saw declining ratings for the second consecutive year on that score.

BSNF nonetheless topped the list in terms of providing clear pricing information to customers.

STC Executive Director Mike Steenhoek has seen no indication that billionaire investor Warren Buffett’s 2009 takeover of BNSF has significantly impacted rates or customer service. He argued that “if you were to select an investor to own a railroad, you would want someone like a Warren Buffett,” who takes a long-term view of investments and is open to “aggressively” investing in capacity. — Martin Ross

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FarmWeek Page 10 Monday, June 25, 2012

markets

Medical group affirms general GMO safety

BY MARTIN ROSS FarmWeek

Addressing physicians from across the U.S., Illinois Farm Bureau President Philip Nelson spoke out on the consumer safety and federal oversight of ag biotechnology.

During the American Medical Association’s (AMA) annual meeting last week, Nelson provided testimony as part of what he described as a “heated discussion” regarding GMO food labeling. Nearly 3,500 doctors were gathered in Chicago.

The Illinois State Medical Society and Indiana State Medical Association requested an AMA study of existing GMO health issues and any potential need for related labeling, reportedly based on a single physician’s request.

Based on findings by its Council on Science and Public Health, AMA upheld existing policy stating that “no evidence that unique hazards exist” in use of biotechnology or the transfer

of genes even between unrelated plants or animals.

Nelson, a member of USDA’s original biotech advisory committee, warned U.S. Food and Drug Administration (FDA) labeling “without scientific reason” would mislead the public and ultimately undermine “the reputation of regulators.

“AMA’s 2012 policy argues assessment of risks associated with “bioengineered” organisms “should be based on the nature of the organism and the environment into which it is introduced, not on the method by which it was produced.”

Illinois Biotechnology Industry Organization President David Miller told FarmWeek the association’s statements overall were strongly science-based, representing “a real defeat for the people who would cast doubt on the nutritional value and safety of the foods our producers are creating.”

In an RFD Radio/FarmWeek interview, Nelson cited

the rigorous federal testing procedures and protocols related to GMO crops. Current biotech products have been “proven safe” by USDA, FDA, the U.S. Environmental Protection Agency, and the National Academy of Sciences, he maintained.

“At the end of the day, we feel we have science on our side, and there is not the need or the hue-and-cry by the consuming public to (label GMO products),” Nelson said.

Miller argued AMA’s stance is important as California voters prepare to mull a fall voter referendum on GMO labeling. AMA language critical of or raising doubts about GMO safety likely would have fueled support for California’s so-called “Right to Know Genetically Engineered Food Act,” he said.

Nelson noted the predominance of biotechnology in “the entire universe of products that are grown today.”

Nearly 94 percent of soy-

beans and 88 percent of corn grown in the U.S. have been developed using “modern biotechnology,” he noted.

He cited the current wealth of “niche marketing opportunities” within the food sector, recognizing that “organic has its place in agriculture.” But he advised against regulators “trying to put an umbrella over everything” at the expense of individual production sectors.

In the latest International Food Information Council Consumer Perceptions of Food Technology survey, 76 percent of U.S. consumers surveyed were unable to sug-

gest any additional information they would like to see on food labels. Of the remaining 24 percent, 36 percent favored more nutritional data and 19 percent called for added ingredient information.

Eighteen percent sought added food safety information (a nine-fold increase over 2010), but only 3 percent (less than 1 percent of those surveyed) mentioned biotechnology.

“I think the consuming public feels very comfortable about the safety procedures we have in place,” Nelson said.

Senate measure threat to ‘Great Green Fleet’ Congressional spending proposals could stand in the way of the military deploying the “Great Green Fleet” — in retired Lt. General John Castellaw’s view, a critical mission in the battle for energy security.

This summer, the U.S. Navy is set to conduct Hawaiian demonstrations of an aircraft carrier strike group that runs on “clean energy” and biofuels, paving the way for the fleet’s official deployment tenta‘ We ’r e t a l k i n g tively scheduled for 2016. about security Beyond testing biofuels o n s eve ra l l ev performance, the trial will els.’ help the Navy gauge the logistics of transferring renewable fuels from ship to ship. That would enable the — Lt. General John military to “move away from Castellaw Retired, U.S. Marine Corps a single source of energy,” said Castellaw, a retired Marine officer and president of the Tennessee-based Crockett Policy Institute. “What that leads to is increasing our security,” he argued in an RFD Radio-FarmWeek interview.

The military’s commitment could play a key role in speeding development of next-generation biofuels. But American Farm Bureau Federation policy specialist Andrew Walmsley told FarmWeek the program is “essentially in limbo,” with the Senate poised to review defense spending proposals that would block funding.

Senate Armed Services ranking member John McCain (RAriz.) and Sen. Jim Inhofe (R-Okla.) are spearheading opposition to the initiative, and Walmsley noted hopes for a “fix” on the Senate floor.

“We’re making our case on the Hill,” Castellaw reported.

“We need to make sure the Senate understands the importance of having the Department of Defense continue to buy biofuel to use. And we’re talking about security on several levels.

“It takes $70 billion-plus a year to protect (global) lines of oil shipments and north of $15 million to pay for the Department of Defense’s fuel. When we operate in areas like Afghanistan and Iraq, fuel and sometimes the lack of it, impacts our ability to operate.”

The military “has been involved in developing everything from the Internet to airplanes,” benefiting the commercial and public sectors, Castellaw noted.

Gary Luce, CEO of the biofuel firm Terrabon, argued the military as a buyer provides a reliable partner that can inspire confidence in investors needed to take advance biofuels production to a commercial scale.

Terrabon’s eyed more than 30 biofuels feedstocks, including corn stover, miscanthus, switchgrass, and municipal solid wastes. One of its partners is Waste Management, a waste collection/disposal corporation Luce sees as primed to move “from an environmental services industry to an energy industry.” — Martin Ross

Page 11 Monday, June 25, 2012 FarmWeek

EDucaTiON

HELP WANTED: Ag ed grads in demand, 2013 shortage expected

BY KAY SHIPMAN FarmWeek

New teachers who will guide high school students into agricultural careers are in short supply this year despite the economic strength of the nation’s ag industry sector.

Last week ag education supporters learned searches for potential ag teachers have expanded into neighboring states to help fill vacant ag teaching jobs in Illinois. However, those states face similar shortages and have yielded no candidates, members of two state ag education committees were told.

“We do still have some (teaching job) openings, and hopefully we can

Next year, get those filled. We the number of don’t have a surplus ag education of candidates,” said Jess Smithers, who ‘People need to be aware graduates may will succeed Jay Run- there are opportunities be half this year’s total, ner as state coordiwith an ag education according to nator for Facilitating degree.’

Smithers.

Coordination in “The numAgricultural Educabers (of gradution (FCAE).

Next year’s situa— Jess Smithers ates) will be Facilitating Coordination significantly tion is of more conin Agricultural Education lower next year. cern.

Our concern is This year, 28 stuwhere will the dents graduated with graduates come from next year?” degrees in ag education from the four Runner told FarmWeek. He will Illinois universities with agricultural retire as state FCAE coordinator in a programs.

FFA using Ag Career Network to link members, employers The National FFA has developed a partnership with Career Cruising and {AgCareers.com} to assist members interested in ag-related careers.

In December, National FFA launched the Ag Career Network that allows FFA members to maintain records and provides a database of students interested in particular careers.

This fall, the Ag Career Network will offer enhanced features.

Through Career Cruising, FFA members will be able to access online

career-related information, including recommendations for classwork and hands-on learning opportunities.

Career Cruising also will connect students to career mentors and employers in their towns.

With its job board, {AgCareers. com} will allow FFA members to search for career opportunities in a certain field or geographic area.

Members also will be able to access information for internships and career options during their college years.

STEELE HONORED

Former Illinois Farm Bureau President Harold Steele of Dover shares observations about agriculture and the organization during a Bloomington celebration of his 90th birthday last Thursday.

Also in attendance was his wife, Margery. Steele, a World War II veteran who served as IFB president from 1970 to 1983, was named an “Illinoisan of the Day” by the Illinois State Museum Foundation at last year’s Illinois State Fair. In the 1980s, he served as chairman of the presidentially and congressionally appointed National Commission on Agricultural Finance, and he chaired the federal Farm Credit Administration (FCA) during his 1989-1993 FCA term. To view additional photos online, visit Ken Kashian’s Photo Gallery located under the Electronic Media & Publications tab on {www.ilfb.org}. (Photo by Ken Kashian)

couple of weeks.

FCAE field advisers raised concerns about the ag industry’s ability to expand current high school ag programs, reopen closed programs, or open new ones.

One school district may change a vacant teaching position from agriculture to industrial technology if an ag teacher can’t be hired, the committees were told.

“People need to be aware there are opportunities with an ag education degree,” Smithers said. “We need to encourage people to pursue careers in the (ag teaching) field. To maintain quality ag education programs, we need quality ag education graduates.”

U of I Northern Illinois ag center sets field day The University of Illinois’ Northern Illinois Agronomy Research Center will have its summer Agronomy Day July 10. The program will start at 9:30 a.m. and conclude at 12:30 p.m. with a meal.

The event is open to the public and there is no admission charge.

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

Topics will include: high soybean yield management, corn rootworm issues and Bt performance, corn disease

identification and management, nutrient removal by corn and soybeans, and weed control challenges.

The 160-acre Northern Illinois Agronomy Research Center is located north of Shabbona and is dedicated primarily to corn and soybean research.

The research center is located at 14509 University Road, about five miles north of U.S. Route 30 on University Road. For information, contact Russ Higgins at 815-274-1343 or e-mail rahiggin@illinois.edu.

FarmWeek Page 12 Monday, June 25, 2012

Around IllInoIs

HOGS & HUNGER

Project teaches teens lessons in compassion

BY KAY SHIPMAN FarmWeek

Twenty hogs are teaching two Streator teenage brothers important lessons about raising livestock, compassion, and their capacity to help feed hungry people.

Riley Parcher, 15, and his brother, Josiah, 13, are raising the 20 hogs. They plan to process the animals and donate the pork to four local food pantries. The brothers have received help and support from their parents, Tom and Susan, neighbors, and fellow members of the Streator Township High School FFA Chapter.

“You’d see the kids; they’re

pretty serious about it. There’s a maturity level,” Tom Parcher said, as he eyed four teenage boys sprawled on his lawn last week.

The boys — some who live on farms and others who don’t — have helped the Parcher brothers plan and build a place to raise the hogs, feed and water the animals, promote the project, and even sell raffle tickets to defray the processing costs.

They dubbed the project, Hogs Fighting Hunger.

“This has gone better than I expected,” said Josiah Parcher. “The pigs have grown much faster than I thought they would.”

Streator student Josiah Parcher, second from left, is raising 20 hogs along with his brother, Riley (not present), with plans to process and donate the pork to local food pantries. Helping with the hog project are, left to right, fellow Streator students Max Vickers, Kegan Brown, and Mo Eutler. (Photo by Kay Shipman)

Neighbor and friend, Kegan Brown, added, “We’ve been going out and trying to get people to donate for a good cause. It’s surprised me. We’ve gotten a lot more support than I thought.”

Tom Parcher acknowledged the boys did receive a few questions about their ability to handle such a big project given their young age, but the supporters vastly outnumbered the skeptics.

The teens learned a lot about raising hogs, he added.

The project also taught the boys about the generosity of local businesses. Grainco FS donated corn for feed; Lostant Mill helped mix the feed; and Exelon Corp.’s LaSalle County Generating Station donated $1,500 for the project.

The boys hope to process the hogs in late July. They will see the project all the way through to the end with

delivery of pork to the food pantries.

The experience has meant something different to each of the teens who gathered last week.

Mo Eutler, 15, enjoyed working with his friends.

Max Vickers, 14, liked visiting the Parcher farm and seeing the pigs grow. Josiah Parcher learned about giving shots to the pigs.

“Building everything was the most fun. Throwing ideas out and working as a team,” Brown added.

For more information or to support the project, contact the Streator Township FFA Chapter or e-mail Tom Parcher at tparcher07@gmail.com.

Auction Calendar

Service. www.powersauction.com Sat., July 7. Hazelhurst Annual Summer Consignment Auction.

MILLEDGEVILLE, IL. Sat., July 7. 10 a.m. 3 Bdrm./2 Bath Home w/Pole Barn. CREAL SPRINGS, IL. Joe Ollis Auction Service.

Sat., July 7. 1 p.m. Farm Toy Auction. Irvin Dean Franklin Estate, PITTSFIELD, IL. Curless Auction. www.curlessauction.com Sat., July 14. 10 a.m. Randolph, Jackson and Perry Co. Land Auctions. SPARTA, IL. BuyAFarm.com Mon., July 16. 7 p.m. Shelby & Fayette Co.’s Land Auction. W.H. “Willie” Jones Trust, HERRICK, IL. Wm. Beck and Cory Craig, Auctioneers.

Fri., July 20. 10 a.m. Iroquois Co. Land Auction. WATSEKA, IL. murraywiseassociates.com Fri., July 20. 9 a.m. Farm & Construction Eq. Consignment Auction. TREMONT, IL. Cal Kaufman and Brent Schmidgall, Auctioneers. tremontconsignmentauction@yahoo.com Tues., July 24. 10:30 a.m. Land and Gravel Pit Auction. Dan and Paula Ellberg, FORRESTON, IL. www.lennybrysonauctioneer.co m Wed., July 25. 1 p.m. Winnebago and Ogle Co’s Land Auction. Held at Monroe Center Fire Station. murraywiseassociates.com

Thurs., June 28. 10 a.m.

McHenry Co. Land Auctions.

MARENGO, IL. Farmers National Company. www.farmersnational.com Wed., June 27. 10 a.m. Logan Co. Land Auction. Owen Beaver, LINCOLN, IL. Mike Maske Auction Service. www.maskeauction.com Wed., June 27. 6 p.m.

Cumberland Co. Real Estate.

Maria Smith Est., TOLEDO, IL. Stanfield Auction Co. www.stanfieldauction.com Thurs., June 28. 10 a.m.

McHenry Co. Land Auctions.

MARENGO, IL. Farmers National Co. www.farmersnational.com Thurs., June 28. 10 a.m. Farm machinery auction. T. Mark Forden Estate, MACOMB, IL. Wm. Beck Auction & Realty. www.williambeckauctions.com Sat., June 30. 10 a.m. Trucks, Trailers, Grain Handling, Shop Eq. and Tools. Iverson Bins & Millwright, Inc., FLANAGAN, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc.com Sat., June 30. 6 p.m. Perry Co. Land Auc. Sprague Land Co. & John and Heather Wilmesher, OKAWVILLE, IL. Sullivan Auctioneers. www.sullivanauctioneers.com Sat., June 30. 9:30 a.m. Antique Tractor and Eq. Auc. BROWNTOWN, WI. Powers Auction

Page 13 Monday, June 25, 2012 FarmWeek

from the counties

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HAMPAIGN — Farm Bureau will sponsor a trucking regulations meeting at 7 p.m. Wednesday at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will discuss rule changes and the delivery of grain to market.

Call the Farm Bureau office for more information.

OLES — Farm Bureau and Country Financial

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agent Amy Fredrick will sponsor Bessie Bingo at 10 a.m. Saturday, July 21, at the Coles County Fairgrounds. Tickets are $20 per number and may be purchased at the Farm Bureau or Fredrick’s office. Call the Farm Bureau office at 345-3276 or Country Financial office at 345-2146 for more information.

OOK — Farm Bureau will sponsor its annual “Farm Bureau White Sox

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Night” Tuesday, Aug. 7. The Sox will play the Kansas City Royals. Tickets are $18 for lower-reserved seating. Call 866-769-4263 or go to the website {www.whitesox.com/fbn} for tickets.

RUNDY — Farm Bureau will sponsor a bus trip Saturday, July 14, to see the Chicago Cubs vs. Arizona Diamondbacks baseball game. Cost is $75, which includes ticket, bus, snacks on bus, and prizes. Lunch is on your own. Space is limited to 45 participants on a firstcome, first-served basis. The bus will leave the Farm Bureau office at 9 a.m. Call the Farm Bureau office at 815-942-6400 for reservations or more information.

CHENRY — Farm Bureau and McHenry County Antique Farm Equipment Association will sponsor their 10th annual “Tractor Trek” on Saturday, July 21.

Participants will travel from the historic Petersen Farm to Lake Geneva, Wis. Registration is $100, which includes a boat ride, lunch at Popeyes, ice cream, shirt, hat, and end-ofthe-day refueling. Proceeds will benefit the Ag in the

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M

State Rep. Dena Carli (D-Chicago), kneeling, cuddles a little pig as Bureau County farmer Cheryl Cowser, standing right, answers questions.

Carli, who was ‘adopted’ by the county Farm Bureau, and 15 friends and family members learned about agriculture during a recent farm tour. (Photo by Christina Nourie)

‘Adopted’ state lawmaker, family tour Bureau County

BY CHRISTINA NOURIE

State Rep. Dena Carli (D-Chicago) and 15 friends and family members recently toured a Bureau County farm and the county’s ag industry. Through Illinois Farm Bureau’s Adopt-a-Legislator program, Carli was “adopted” by the Bureau County Farm Bureau late last year; this was her first meeting with the farmers and her first farm visit.

The tour started at Ag View FS plant, Buda, where Carli was met by county Farm Bureau board members. The group traveled to the Cowser Hog farm, a farrow-to-wean operation. They learned how farmers care for their animals and asked farmer Cheryl Cowser many questions on topics such as gestation stalls, tail docking, and hormone use in livestock.

Next, they learned about the wind energy industry at Sean Jensen’s wind farm. They learned about the role agriculture plays in expanding wind energy in Illinois and the challenges of siting and developing a wind farm. They also had an opportunity to get into a tractor and learn about modern farm technology.

A third tour stop was the Patriot Renewable Fuels plant in Annawan. The group received an overview of the ethanol industry and Patriot’s contributions to the local economy.

Carli said she was impressed and surprised at farmers’ dedication to their operations and amount of work that goes into caring for livestock and growing a crop.

She stated not only should all legislators spend a day touring farms, but urban residents also need to do that so they understand what farmers do and how important agriculture is to the Illinois economy.

Carli said she looks forward to hosting the Bureau County farmers for a tour in her district later this summer.

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

Classroom program. Call the Farm Bureau office at 815338-1520 or e-mail Dan Volkers at mcfbmgr@att.net for more information.

HELBY — A “Wild for Wildman” benefit for Stewardson-Strasburg FFA adviser Mark Wildman will be from 4 to 8 p.m. Friday at the Stewardson-Strasburg High School. A hog roast, kid’s carnival, pedal tractor pull, dunk tank, cake walk, and auction will be held. Proceeds will help with Mark’s medical expenses.

AYNE — The annual Young Leader golf scramble will be Saturday, July 21, at the Wayne County Golf Course, Fairfield. Hit a holein-one and win a John Deere Gator XUV. Harvest, hole, and cart sponsorships are available. Visit the website {www.waynecfb.com} for more information.

• The annual member appreciation dinner will be from 5 to 7 p.m. Friday, Aug. 10, at the CP Church, Fairfield. Tickets are $2 and may be purchased at the Farm Bureau office. The Wayne County Ag in the Classroom will sponsor a silent auction

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during the dinner. Call Brianne Foster at 618-599-6338 if you have an item to donate for the auction.

HITE — The White County Farm Bureau Foundation is seeking donations toward the purchase of one or more GSI grain bin RES-Q-Tubes for training of emergency personnel in the county. Donations are tax deductible. Donate online at {www.whitecfb.com}.

• The annual Young Leader pistol shoot will be Saturday, July 14, at the Carmi Rifle Club. Shooters will be eligible to win a Henry Golden Boy .22 rifle. Registration is $25 before July 1 and $35 after that date. Register online at {www.whitecfg.com}.

• The member appreciation lunch will be from 11 a.m. to 1 p.m. Wednesday, Aug. 8, at the Flora Hall. Call the Farm Bureau office at 618-382-8512 for reservations or more information.

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

FarmWeek Page 14 Monday, June 25, 2012

profitability

‘Economy’ doesn’t lift ag prices, money does

BY KEL KELLY

Mainstream economics teaches that higher prices are signs of a growing economy.

This is incorrect.

A growing economy consists of producing an increasing Kel Kelly amount of goods and services. Therefore, the more things we make, the lower prices are.

As the same economywide quantity of money is spent to purchase an increasing supply of goods, prices fall.

Prices rise in reality only

because the Federal Reserve and the banks produce (i.e. “print”) money at a faster pace than businesses produce goods.

Just as more money pushes up consumer prices, it also lifts prices of stocks, bonds, real estate, and commodities — all of which should fall, not rise, as their supply increases. Thus, rising ag prices are a symptom of monetary inflation, not of economic growth — including China’s.

Similarly, a rising GDP (Gross Domestic Product) does not necessarily reflect economic growth. GDP, a calculation of the number of products produced multi-

plied by their selling price, also is pushed higher with money printing, since the monetary inflation raises selling prices.

Although the government supposedly “deflates” this inflationary impact on GDP, it intentionally understates inflation growth in order to claim a higher GDP. For this and many other reasons, GDP is a meaningless indicator of the real state of the economy and our standard of living. True economic growth can be measured in real terms only by the amount of goods and services that our earnings can buy each year. If there is indeed economic growth, we

will be able to afford more things.

Changes in the quantity of money effected by the Fed and banks not only precede changes in consumer prices, GDP, and financial assets but also cause changes in patterns of production, employment, and bank leverage.

Strong money pumping sets off an artificial and temporary economic boom.

Conversely, a reduction in the growth rate of money causes the boom to cease, revealing the economic dislocation and malinvestments generated by the boom.

It is then that business losses are revealed and stock markets fall, causing bank

failures, monetary contraction, unemployment, and a manifest decline in economic growth. The real economy is pushed and pulled by surges of money flowing wildly — and unnaturally — through it. This is what caused the 2008 meltdown.

So, to understand the economy, one must first look to the banking system and the money it’s generating, not to changes in GDP, employment, and deficits, all which are merely symptomatic results of money printing.

Kel Kelly is GROWMARK’s manager of economic and market research. His e-mail address is kkelly@growmark.com.

Mexico and Canada cleared for trade group; Japan pending

BY MARTIN ROSS FarmWeek

Farm Bureau last week hailed approval of Mexico and Canada as new negotiating parties in the ambitious Trans-Pacific Partnership (TPP), as Japan continues to wait in the wings.

The U.S. neighbors join the U.S., Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam in talks aimed at developing a major east-west trade pact.

The U.S. already has separate free trade agreements with several TPP nations, but American Farm Bureau Federation (AFBF) trade specialist David Salmonsen said other current partners offer little in terms of U.S. ag export potential. The addition of Mexico and prospective partners Canada and Japan “would make this a much bigger deal,” he told FarmWeek.

As the U.S.’ third largest ag export market, with $17

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

40 lbs.

Range Per Head $30.80-45.00 n/a

Weighted Ave. Price $37.98 n/a

This Week Last Week 127,032 122,122 *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 $100.47 $92.41 $74.35 $68.38

Change 8.06 5.96

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 115.81 118.75 -2.94 115.71 119.07 -3.36

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 152.89 153.89 -1.00

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-170 lbs. for 132-160.12 $/cwt. (wtd. ave. 147.92); several loads wooled and shorn 180-210 lbs. for 80-110 $/cwt. (wtd. ave. 95.63)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 06-14-12 7.9 20.6 24.7 06-07-12 16.3 22.4 17.5 Last year 4.7 21.1 43.4 Season total 1190.5 43.0 1264.5 Previous season total 1410.3 54.2 1418.3 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

billion-plus in 2011 sales, Mexico should “bolster the reach of the TPP negotiations for U.S. agriculture,” AFBF President Bob Stallman argued. The U.S. and Mexico can play a key role in strengthening sanitary/phytosanitary (SPS/health and safety) standards and expanding market access, Stallman said.

Canada is the secondlargest export market, with more than $18 billion in sales in 2011.

At the same time, Stallman stressed that new parties to the TPP must recognize “that this a comprehensive agreement,” and that individual trade sectors should not be excluded from negotiations. Mexico’s efforts to address longstanding SPS issues with the U.S. “signals a willingness to participate in a comprehensive negotiation,” he said.

A unanimous vote is required to admit new TPP partners. Salmonsen noted some existing partners seek to complete negotiations before adding new countries, while others argue potential partners “want to get in while negotiations are still going on.”

“Canada and Mexico have really wanted in,” he said.

“We don’t know if Japan, which everyone sees as the ‘bigger prize’ — the country that has changes to make in its import restrictions — is in a position to really push to get in.

“They’ve said they’re interested, but they’re dealing with their nuclear issue, and their government’s pushing this big consump-

tion tax to pay for all these things they’re going to have to do in the wake of their (2011) earthquake and tsunami. They have a lot of other issues going on.”

Ag market access likely will be addressed later in TPP talks, he said. However, Salmonsen cited current discussion of SPS issues, with some proposals “even going

beyond” existing World Trade Organization standards.

“We’re pushing to make things even more sciencebased, a little tighter, so we can have more predictability and transparency in what countries do with food safety standards, so they don’t operate as trade barriers,” Salmonsen said.

USDA

Farm Service Agency COUNTY COMMITTEE NOMINATIONS: The nomination period for farmers to serve on Farm Service Agency (FSA) county committees continues through Aug. 1.

FSA county committees are a link between the agricultural community and USDA. County committee members help deliver FSA farm programs at the local level and help with the decisions necessary to administer the programs in their counties. They work to ensure FSA agricultural programs serve the needs of local farmers.

For more information about county committee nominations and elections, contact your local FSA office.

ACREAGE CERTIFICATION: Don’t forget the deadline for certifying 2012 acreage is approaching.

Acreage reports on crops covered by Noninsured Crop Disaster Assistance Program (NAP) are due in the county office by July 16 or 15 calendar days before the onset of harvest or grazing of the specific crop acreage being reported, whichever is earlier.

Filing an accurate acreage report for all crops and land uses, including failed acreage and prevented planting acreage, can prevent the loss of benefits for a variety of programs.

Failed acreage must be reported before disposition of the crop.

Prevented planting is the inability to plant the intended crop acreage by the final planting date for the crop because of a natural disaster. Farmers who request prevented planting must report their acreage and complete a CCC-576 Notice of Loss, Part B, within 15 days after the final planting date.

Farmers will need to provide documentation showing field preparation, seed purchase, and other information that proves their intent to plant the acreage.

Contact your local county office for more information on deadlines for acreage certification.

Page 15 Monday, June 25, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Acreage number coming Even though the trade seems wholly focused on Corn Belt weather, Friday’s USDA reports should not be ignored. While the quarterly grain stocks report is important, the acreage report will be more important. Those planting numbers provide the first piece of the foundation for forecasting the size of this year’s crops.

Unlike the last few years in which plantings were hindered by wet springs, this year’s crops went in the ground extremely fast, suggesting the planting numbers in this year’s report should be relatively accurate.

Because conditions were so good, better than any time in the last four years, prevent plant acres should be very low. Even in 2008, the most recent high in total crops planted, prevent plant acres were thought to be near 2 million.

There is an incentive to plant every acre possible when crop insurance guarantees are high like they are this year.

That may be especially true in assessing soybean double-crop plantings. Even though persist-

ent dry conditions may keep some double-crop acres from being planted, producers still potentially forego a potential insurance indemnity payment if they don’t plant the soybeans in an area where that is considered a part of the normal cropping practice.

It’s also important to remember the survey for this report is taken in early June. Even though it may have been too dry to plant soybeans at that time, producers likely would have indicated they still intended to plant double-crop if rains came.

In the end, we will lose some double-crop soybean acres, but from what level? Given the total acreage in the March intentions report was less than the acreage planted in 2008, there’s reason to think total plantings will rise significantly from the March forecast. And there’s still the question of what was done with the 5 million acres that have come out of the Conservation Reserve Program since 2008.

Given the strength in soybean prices this winter/spring, we believe they will be the beneficiary. That leads us to think the planting number in this report will be 1 million to 1.5 million acres larger than last year, not the million less USDA forecast in March.

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Cents per bu.

ü2011 crop: If December futures close above $5.70, wait for a move into the $5.90s before wrapping up sales. ü2012 crop: If December futures close above $5.70, hold off making sales until it approaches major resistance at $5.97-$6.07. We prefer hedgeto-arrive contracts for making sales, but plan to tie up the basis by mid-summer. vFundamentals: The trade’s attention has been focused on dry weather developing across the central/eastern Corn Belt. The six- to 14day forecasts are calling for normal to above normal temperatures and below normal precipitation. Still, if moisture develops soon, there’s time to produce a crop larger than expected demand. Oldcrop prices already are feeling pressure from sluggish export demand and deteriorating profitability in the ethanol industry. High feed prices continue to restrain expansion in livestock operations. ûFail-safe: If December futures close under $5.45, make sure sales are at recommended levels.

Soybean Strategy

ü2011 crop: July futures’ move above $14.50 opens the door for a move toward $15, but we doubt it will see a new high. Use strength to wrap up old-crop sales. ü2012 crop: You may wait to see if November moves past $14 before making any sales. If that occurs, it could move to $14.50, possibly even to $15.

But that’s more difficult. vFundamentals: The market has become a classic weather market. Typically, early-season ones tend to peak at or before July 4. That was the case in 1988. By the end of July that year, November futures were 30 percent off their end-of-June high. In the midst of a weather market, it’s easy to forget the impact high prices have on demand. In this world economic climate, it’s important to consider the impact the climate might have on demand. At the same time, end users are going to be looking ahead to a larger

South American crop next spring. ûFail-safe: If November futures close below $13.50, make sure sales are at recommended levels.

Wheat Strategy

ü2012 crop: The recent price surge indicates the early seasonal low has likely been established. Make catch-up sales with Chicago September trading above $6.81. Producers selling 100 percent off the combine need to be aggressive in making sales on rallies. The futures carry makes it attractive to store wheat during the summer, but only if it’s priced or hedged. We may recom-

mend an additional 10 percent sale at anytime so stay close to the Hotline. vFundamentals: Upward momentum in wheat prices has been linked to the surge in corn prices, with the trade worrying about dry weather in the eastern Midwest. In addition, export business has improved with our larger crop and generally good quality. Weekly export sales the past few weeks have exceeded expectations.

Even though international supplies remain ample, weather problems in the Black Sea countries could tighten supplies, diminishing their competition in the world trade.

FarmWeek Page 16 Monday, June 25, 2012

pERspEcTIvEs

Insect memories down on the farm Recently I was facing a long plane flight and needed something to do while cramped in one of those tight seats. So I grabbed two books to read. One was “The Land, The People” by Rachel Peden.

Peden was a newspaper columnist and book author who wrote about life on a family farm in Monroe County, Ind. The book chronicled farm life from the 1940s through the 1960s. First published in 1966, the book was republished in 2010 by the Indiana University Press.

I loved reading the book because it captured the time when I was growing up on a farm.

Peden was a wonderful writer who accurately and TOM poignantly captured the TURPIN people and the rapid changes associated with rural America of the time.

One aspect of life on the farm in those days was that we lived very close to nature.

The land and living organisms — from domestic plants and animals to weeds and wildlife — was in those days, as it still is today, the essence of agriculture. And that cadre of living things included insects.

Peden did not ignore these six-legged creatures in her book. She mentioned mud daubers and non-insect spiders that managed to invade the unkept house of a neighbor.

There was a dragonfly with a “long blue body and two pair of gauzy wings

held straight out from his sides.” Dragonflies and tadpoles were some of the animals that caught her attention at the pond in back of the barn.

She described butterflies: the monarch and its mimic the viceroy, dusky swallowtails, mosaic-bright checkerspots, and sooty-winged Diana fritillaries. She wrote about hummingbird moths that resembled bumble bees in shape and color.

Peden concluded: “There aren’t as many beetle watchers as bird watchers, but that is not the fault of the beetles.” Beetles that did warrant mention in Peden’s book are the so-called tumblebugs, or dung beetles.

According to Peden, “These large, dingy-colored beetles can provide a farmer with an enlightening half hour, as they roll their spherical wealth cooperatively along the dusty, bare ground.”

I will admit that as a boy, I too, spent many an hour watching the dung beetles roll their little ball of cow manure along the trodden cattle paths of the pasturelands. In those days, I didn’t fully understand that the entire process was associated with reproduction of the beetles. They would end up burying the ball of manure as food for their offspring.

As recyclers of mammal manure, those beetles are a classic example of how all of nature fits together in the web of life. As Peden stated, “On all hands, all over the farm and in the woods, the life patterns of these neighbors (the animals including insects) make thoughtful suggestion for a

farm observer to gather, store, and chew on later.”

Today, dung beetles are not nearly as common as they were in the days when Peden was writing about life on the farm. Like horse-drawn equipment, milk cows, and chickens on every farm, they are relics of times gone by.

Dung beetles are victims of the lack of livestock on open pasture. Even when dung beetles are present, they are difficult to see when cruising through the pasture in a pickup truck or a fourwheeler!

Every farm child has had the experience of interacting with fireflies, or lightning bugs as some of us called them. Scientifically, these insects are neither flies nor bugs; they are beetles.

Regardless of what they are called, these light-producing beetles are one of the awe-inspiring sights of rural America.

James Whitcomb Riley described the sight as, “Fireflies, like golden seeds, are sown about the night!”

Peden related the story of a firefly captured in a spider’s web. Under those circumstances, the encumbered insect flashed a rapid-fire distress signal. Peden responded, but she was too late. By the time she got to the web, the spider had already injected a lethal dose of poison to its prey.

Such is the reality of life on the farm.

One thing that Peden didn’t mention was what one songwriter referred to as “The Little Brown Shack Out Back.” In the summertime, such facilities provided a good place to observe insects. After all, it’s hard to ignore the hum of the flies and the drone of the mud daubers when using such a facility.

Maybe there were a few things that Peden didn’t want to remember about those good old days on the farm!

Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His email address is turpin@purdue.edu.

Thoughts on building a framework for global biotech The world’s population this year passed 7 billion and is expected to rise to 9 billion. The global middle class, the primary driver of new food demand, is growing even more rapidly.

Hundreds of millions of people are living longer, living better, and demanding enhanced diets. This is a historic success story, as well as an opportunity.

Agricultural biotech must be an essential part of the solution.

No longer a new technology, biotech is rapidly maturing internationally — as well as in the U.S. — which presents the industry WENDELL SHAUMAN with certain challenges.

Among the most important is the need to develop consensus on key legal and regulatory issues to avoid uncertainty in the market, disruptions to trade, and needless litigation. Industry groups are hard at work trying to forge workable accords on these and other questions.

Global food output must increase significantly. The world’s feedgrain surpluses will be largely in North America and South America, while the bulk of projected demand growth is in Asia and Africa.

Increased production and harmonized trade rules to sus-

tain global progress are essential. But at the same time, rapidly increasing land use and water constraints, environmental concerns, and the drive for sustainability are challenging farmers to grow more with less; and biotechnology plays an important role in each.

Despite its many benefits — higher yields, reduced chemical and fertilizer use, reduced soil loss, increased drought tolerance, and lower irrigation requirements — biotech still faces policy and political barriers.

Enhancing public understanding of the scientific advances in agriculture and improving the legal and regulatory environment on issues, such as timely approval of new biotech events, appropriate safeguards for intellectual property, and the emergence of generics as patents begin to expire on a number of first-generation biotech seed traits, are essential to the industry’s success.

Years of experience clearly have demonstrated the safety and reliability of scientifically enhanced crops. Biotech acreage continues to increase around the world, building familiarity and confidence in the technology.

And biotech research is being internationalized, creating a more competitive environment for U.S. technology leaders in global markets that should — over time — see foreign policy

makers taking a more nuanced view of the sector as their own technology providers enter the field.

For example, a U.S. Grains Council team recently met with key South American agricultural leaders — among our strongest competitors in world markets — who expressed an interest in exploring common ground with the U.S. on market access and biotech regulatory issues. This is an important signal of changing perspectives.

And China, which is investing heavily in this area, has seen very rapid growth of its middle class, challenging the country to increase its agricultural productivity and likely will undergo an evolution with regard to biotech and intellectual property issues as its homegrown technology portfolio expands.

A final complication is the fact that a number of seed traits will be coming off patent over the next few years in the U.S., providing an opening for new entrants into the field.

As with pharmaceuticals and chemical products, the emergence of generics raises myriad issues. However, using a generic biotech trait is even more complex than pharmaceuticals and chemical products because it is not a stand-alone product, but delivered in a seed product that is likely to be protected by separate intellectual property protection.

A broad-based industry group is working to develop appropriate protocols that will provide a systematic path to ensure the continued marketability traits once the patents expire, both in the U.S. and its export markets.

These protocols need to be developed in a timely manner, while ensuring that they are strong enough to both protect intellectual property rights and provide for a smooth transition to a marketplace for generics.

Building a sustainable frame-

work for global biotech is a work in progress. Consensus will be difficult to achieve.

But the world needs to double food production over the next two generations, so building this framework is a challenge we must all work to meet.

Wendell Shauman, a Kirkwood farmer, is chairman of the United States Grains Council board of directors. A former Illinois Farm Bureau director, Shauman has served on the Illinois Corn Marketing Board.

LETTER TO THE EDITOR Queries about advisers, wind turbine contracts

Editor: I read in your June 11 issue that Illinois agriculture has progressed in sophistication to the point that only six (6) crop or agronomic advisers are needed to answer questions and solve the problems of production agriculture. Knowing some of these named advisers/specialists, I do know they are very capable, knowledgeable people, but only six?

More importantly, in a conversation with a gentleman from the Livingston County area, I’ve learned that some of the windmill companies have been taking out second mortgages on the farmland that contains their leased plots and

their windmills.

This second mortgage has severely limited the farmer/producer’s ability to obtain needed production loans because the land value won’t cover the primary mortgage, secondary mortgage, and production loan.

I don’t now the truth of these comments, but in my mind they raise a flag that, true or not, the prospective lessor needs to have the contract read by an expert. And based upon other rumors, be sure there is some provision for windmill removal in the case of non-use.

Being stuck with one of those things that doesn’t work, nor pay, won’t be pleasant.

BILL HARRYMAN, Taylorville