FarmWeek June 4 2012

NOT SURpRISINglY, spring 2012 was the warmest on record, and the forecast for the first half of this month is not promising. .....................8

THIS JUNE DAIRY MONTH finds dairymen facing high feed costs, slumping demand, and tightened margins. ......................................2

A NEW MONITORINg and control plan to keep the voracious Asian carp at bay and key Northern Illinois locks open is set to kick in. ....9

Monday, June 4, 2011

Two sections Volume 39, No. 23

Estate relief tops FB goals for hefty tax agenda

BY MARTIN ROSS FarmWeek

Farm families and rural businesses may have to wait until late fall for extension of key federal tax breaks, but Farm Bureau has waged a preelection campaign to help

ensure long-term estate tax relief is delivered by year’s end.

American Farm Bureau Federation (AFBF) and 25 other business groups have asked Senate leaders to pass the Small Business Tax Extenders Act, sponsored by Sens.

Olympia Snowe (R-Maine) and Mary Landrieu (D-La.). The measure would extend increased deductions and longer depreciation times for equipment and other small business expenses.

Current consensus on the

EARLY YIELDS ENCOURAGING

Bill Bender, left, Pinckneyville, discusses wheat harvest with employees Jason Lummenann, center, and Chris Priebe, right, in a Perry County field. Wheat harvest started about three weeks early in some parts of Southern Illinois. Production from this field was good with an average yield of 77 bushels per acre and an average test weight of 62. Bender plans to double-crop soybeans on his 380 acres of wheat if his farm receives ample rain. It received 0.1 to 0.2 of an inch on Thursday night/Friday morning. (Photo by Ken Kashian)

Hill suggests Congress will defer major tax action until late fall, AFBF tax policy specialist Pat Wolff nonetheless told FarmWeek. Lawmakers thus may have little time to address a crush of tax concerns.

A number of 2001-03 Bush-era tax breaks expire in January, including capital gains relief, current income tax rates, marriage tax penalty relief, and child credits.

Lawmakers also are considering extension of 100-plus expiring short-term measures including business expensing and bonus depreciation, health insurance deductibility, and research and development credits.

And Congress has yet to restore the $1-per-gallon biodiesel tax credit which expired Dec. 3.

The estate tax is an exception among Bush-era “cuts”: In December 2010, Congress passed a two-year measure setting a $5 million individual/$10 million per couple exemption and a 35 percent maximum tax rate.

Impending expiration of those provisions means farm families could face a pre-2002 $1 million individual exemption and a 55 percent rate in

2013 — a potentially grave concern given Illinois’ land values.

“If things go the way we think, there likely won’t be any separate vote on the estate tax — it will be one giant tax bill,” Wolff said. “(Congress will) only have three or four weeks after the election. We’re pounding away, saying, ‘You can’t let this happen. We can’t go back to $1 million.’ We need to keep what we’ve got at the end of the year.”

Small business relief Economic growth and small business development have become a current focus for tax relief. A new Congressional Budget Office (CBO) report warns the economy could slip into a recession unless policymakers address steep tax increases and spending cuts set to kick in next year.

Without congressional action, the nation’s gross domestic product could grow by a meager 0.5 of a percent next year, with a decline in output during the first half of 2013, the CBO suggested.

The Senate extenders bill would allow new businesses to deduct $10,000 in start-up See Estate, page 3

Pension reforms stall Periodicals: Time Valued

Agriculture shares cuts in pared-down budget

BY KAY SHIPMAN FarmWeek

The pain of state funding cuts is shared in the new state budget the General Assembly passed before adjourning on Thursday. The budget awaits action by Gov. Pat Quinn.

Spending reductions were taken by several Illinois Department of Agriculture (IDOA) programs and services, such as warehouse, meat, and poultry inspections and fertilizer and pesticide programs, according to Kevin Semlow, Illinois Farm Bureau

director of state legislation.

“Every agency had a budget reduction, but agriculture did not take as much of a cut (as other agencies),” Semlow said.

“The legislative appropriations committees realized agriculture’s budget had taken much larger shares of budget cuts over the years.”

One ag facility poised for closure, the animal diagnostic laboratory in Centralia, could remain open after lawmakers dedicated $1.2 million for the lab. Gov. Pat Quinn had pegged the lab for closure in

FarmWeek on the web: FarmWeekNow.com

his budget proposal.

Funding for several ag programs was maintained at cur-

FarmWeekNow.com Listen to comments by Speaker Mike Madigan about the spring session at FarmWeekNow.com.

rent levels, including that for county fairs. The line item for agricultural education was maintained at $1.8 million.

Funding for Soil and Water Conservation Districts was reduced from $2.785 million to

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

$2.485 million. Local University of Illinois Extension offices also received a cut in the state funding that matches locally generated Extension revenue.

At 1:30 a.m. Friday, the Senate defeated a measure that would have raised fees to generate $36.2 million to fund the Illinois Department of Natural Resources (IDNR), Semlow said.

The proposal would have increased 20-some fees, including fees for license See Budget, page 3

FarmWeek Page 2 Monday, June 4, 2012

Quick Takes McDONALD’S TO BE STALL-FREE BY 2022 — McDonald’s last week unveiled a 10-year plan to phase out the use of gestation stalls in its U.S. supply chain.

The decision came about three months after McDonald’s revealed it would assess the situation with its pork suppliers.

“We value our relationship with our suppliers and our shared commitment to animal welfare,” said Dan Gorsky, senior vice president of McDonald’s North America Supply Chain Management.

The Humane Society of the United States welcomed McDonald’s decision while the National Pork Producers Council (NPPC) expressed disappointment.

“At least (McDonald’s) discussed its plans with the pork industry and has concerns with the available pork supply from stall-free operations,” said R.C. Hunt, NPPC president. “But the bottom line is, the issue of sow housing is about providing the best care possible for our animals.”

NPPC suggested other food companies consider the supply chain realities of the pork industry before making a similar decision.

ATRAZINE SETTLEMENT GETS PRELIMINARY OK — U.S. District Judge J. Phil Gilbert ruled last week the lawsuit settlement between Syngenta and community water utilities appears to be “a good compromised result for the parties,” according to the Associated Press (AP).

Syngenta, the principal manufacturer of atrazine, agreed to offer $105 million to settle an 8-year-old lawsuit. Water utilities that detected any amount of atrazine in raw or treated water previously or within 90 days of the settlement approval would be entitled to a share of the money along with the plaintiffs’ lawyers.

A lawyer for the plaintiffs told the AP the water utilities serve towns in Illinois, Iowa, Indiana, Kansas, Missouri, and Ohio.

ARC EQUITABLE — The Senate-proposed Agriculture Risk Coverage (ARC) program would treat program crops such as corn, wheat, rice, peanuts, and soybeans more equitably, according to a report issued last week by the Food and Agriculture Policy Institute (FAPRI).

In its report, FAPRI examined the potential impacts of the Senate Ag Committee’s farm bill proposal. The existing Average Crop Revenue Election (ACRE) program has received mixed reviews from various commodity groups.

“According to the FAPRI analysis, benefits to soybean farmers under the ARC program will amount to 1.9 percent of total market receipts, slightly below the average of corn, wheat, and sorghum and slightly above that of peanuts and rice,” American Soybean Association President Steve Wellman said. “This is a good indicator that the Senate version of the farm bill treats most commodities equitably.”

The Senate farm bill proposal is reportedly second on the legislative agenda when the Senate returns from recess this week. This means the bill could be on the Senate floor as early as Tuesday, though no fir m date has been announced.

(ISSN0197-6680) Vol. 40 No. 23

June 4, 2012

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

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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

Dairy

Tight margins squeeze dairy farmers

BY DANIEL GRANT FarmWeek

June Dairy Month, which celebrates dairy production and promotes the consumption of dairy products, likely is a welcome sight for milk producers.

Greater milk production, high feed costs, and slumping demand have tightened margins in the dairy business so far this year.

“We can always use more promotion of our products,” said Doug Scheider, president of the Illinois Milk Producers Association (IMPA) and a dairy farmer from Freeport.

“Milk prices have dropped and feed prices, in general, are higher. It’s really squeezed our margins.”

Milk prices this year have declined about 20 percent.

Many dairy farmers, subsequently, have been losing anywhere from $1 to $3 per 100 pounds of milk produced depending on the region of the U.S., herd size, and level of milk production, according to Mike Hutjens, University of Illinois professor emeritus of animal sciences.

“World milk prices have declined due to economic downturns in European countries such as France, Italy, Greece, and Portugal,” said Hutjens, who noted high milk

production in New Zealand and the U.S. also has contributed to lower prices. “Abundant rain, producing high levels of pasture (in New Zealand), and a mild winter in 2012 (in the U.S.) allowed cows to respond with

lenge to try to find ways to become more efficient,” said Scheider, who encouraged fellow producers not to cut back on feed.

“You can’t cheat the cows,” he continued. “They need the

more milk,” he said.

Solutions for dairy managers to remain profitable include generating a higher milk yield per cow, increasing fat/protein in milk, high-quality production (processors pay a bonus for quality milk), or using byproduct feeds such as distillers grains to reduce feed costs, Hutjens noted.

But many dairy farmers in Illinois, who are used to the cyclical nature of the business, likely have done all they can to improve efficiencies, according to Scheider.

“It becomes more of a chal-

level of nutrition they’re accustomed to. Otherwise, (dairy farmers) will be in jeopardy of losing milk production and conditioning of the cows.”

Illinois dairy farmers generally are better positioned than some of their out-of-state counterparts to deal with higher feed prices due to the fact so many in the state produce their own feed, Scheider said.

But higher crop production costs also are having an adverse effect on dairy farmers.

The IMPA president believes it’s important for dairy farmers also to connect with consumers.

“Consumers drink a lot of things, and some are not nearly as nutritious as milk,” Scheider said. “(Interacting with consumers) is something we have to keep doing. It’s good for the public to find out more about how food is produced.”

Scheider recently held tours for school children on his farm.

Milk posts another decline The Class III price for milk adjusted to 3.5 percent butterfat for the month of May was $15.23 per hundredweight, 49 cents lower than the previous month.

May marks the sixth straight month of lower prices in the milk complex. Class III prices have declined a total of $3.84 per hundredweight since last December.

Now that school is out for the summer, demand will soften.

Dairy processors hope ice cream consumption starts to heat up as the summer kicks off with “June Dairy Month.”

Tuesday: • Ag weather with Bryce Anderson, DTN chief ag meteorologist • Michelle Damico, Michelle Damico Communications, and Jennifer Tirey, Illinois Department of Agriculture marketing and promotions bureau chief • Kevin Rund, IFB senior director of local government Wednesday: • Doug Kamholz, Illinois State Fair Museum Foundation • Amy Roady, ISA communications director, and Carla Mudd, IFB consumer communications manager • Nick Fassler, BASF technical market manager Thursday: • Tim Maiers, Illinois Pork Producers • Jean Follett, interim president of Landmarks Illinois Friday: • Sara Wyant, AgriPulse • Dave Blanchett, deputy director of the Abraham Lincoln Presidential Library • Story time with Alan Jarand

Page 3 Monday, June 4, 2012 FarmWeek

government

High-stakes legislative session ends with drama

BY KAY SHIPMAN FarmWeek

The spring legislative session concluded last week with derailed negotiations, lastminute proposals, and floor action stretching into the early morning Friday.

One of the measures thrown off track was Illinois Farm Bureau’s efforts to address issues related to hydraulic fracturing to extract oil and natural gas, according to Bill Bodine, IFB associate director of state legislation.

Earlier IFB, the oil and gas industry, and environmental groups had agreed on language to address such items as well integrity and the reporting of chemicals used in the hydraulic fracturing of a well.

However, a proposed amendment that added an oil and gas production tax surfaced in the House. The proposed measure would have created a 12 percent tax on the amount received from a well’s

production — essentially a gross receipts tax, Bodine said.

IFB, the Illinois Oil and Gas Association, the Illinois Petroleum Council, and many other groups opposed the tax that potentially would have taxed all entities with an interest in the production of the well, Bodine added.

In the session’s final hours, a one-year moratorium on fracking was proposed but no vote was taken.

“In the end, the legislation that would establish rules for hydraulic fracturing did not move forward and negotiations are expected to continue this summer,” Bodine said.

LEGISLATORS did pass reforms to the state’s Medicaid system in four bills.

Under the legislation, rural hospitals that are among critical-access hospitals and safetynet hospitals are exempt from a 2.7 percent reduction in the reimbursement rate, according to Kevin Semlow, IFB director

of state legislation.

Lawmakers also raised the cigarette tax by $1 per pack with the anticipated increase of $350 million to be used to match federal funding for Medicaid.

In addition, the state would clarify rules and standards for eligibility of services to the poor, Semlow added. Hospitals would be required to pro-

is interstate or intrastate commerce, Rund offered farmers a rule-of-thumb: “If you know or should reasonably assume that a majority of the product being shipped to a delivery point will be shipped out of the state, then you must consider that delivery to be a part of interstate commerce.”

Rund said farmers should not assume that any elevator next to a railroad track would be considered an interstate destination merely because of its location.

Deliveries to those facilities likely would be considered interstate commerce only if the rail facilities can accommodate large train sets destined for out-of-state locations. Those determinations will be made on a case-by-case basis, he added.

“The enforcement policy is new and not all of the dust has settled,” Rund said.

“Whether you want to change from interstate to intrastate or vice-versa, it might be best to see how the FMCSA will treat any specific facilities served by rail or other major facilities you deliver to before making the switch.”

A farmer who has a USDOT number and passed a government new-entrant audit may keep his number and current interstate status, may deactivate the number, or may change his status to intrastate.

A farmer may deactivate his number and change his status via the Internet, fax, or mail.

He needs to complete and

submit a “Form MCS-150.”

Rund warned farmers to complete the change by using only one method.

He recommended farmers check with their county Farm Bureau office to see if the staff can help.

“Often they will have the forms and be able to help with the change,” he said.

To complete the change immediately, go online to {http://www.fmcsa.dot.gov/registration-licensing/registra-

vide free services to the poor who meet income thresholds in urban and rural areas. Certain not-for-profit hospitals would qualify for property tax exemptions.

CONTACTS BY FARM BUREAU members helped assure a bill to increase the state’s minimum wage was not called for a vote, Semlow said.

The proposal would have required farmers

to pay all employees overtime during busy seasons as well as raise the wage rate for teens younger than 18.

“We would like to thank all of the members who made calls on this issue,” Semlow said.

“The calls were very helpful in assuring the bill was not called for a vote.”

The bill’s sponsor, Sen. Kimberly Lightford (D-Maywood), will continue to meet with stakeholders, including IFB, over the summer to discuss minimum wage issues.

Budget Continued from page 1 plates, park entrances, and bike trails.

Originally, 100 fee increases, including several that directly impacted agriculture, had been proposed.

After the ag-related fees were removed, IFB took a neutral position on the proposal, Semlow explained.

Lawmakers fell short of their goal to reform the state pension system, and Quinn

had said he intends to address that in a special session this summer.

The legislature again attempted to expand gambling to raise revenue.

Although a proposal passed in both chambers, the Senate again used a parliamentary procedure to hold the bill indefinitely before sending it to the governor and likely would not release the measure without assurances of the governor’s signature, Semlow said.

New information available on FMCSA policy revision The Federal Motor Carrier Safety Administration (FMCSA) now treats commodity shipments by farmers from a farm to market within Illinois as intrastate commerce — with a few exceptions still considered interstate commerce. Those exceptions include deliveries to river terminals, unit-train facilities, and intermodal container facilities.

As a result, some Illinois

farmers no longer will be subject to federal rules — requiring unified carrier registration (UCR) or U.S. Department of Transportation (USDOT) numbers — for many farm-tomarket deliveries within the state.

Illinois Farm Bureau is working with FMCSA, state agencies, railroads, and the grain industry to determine the characteristics of a rail facility that would be defined as interstate commerce, according to Kevin Rund, IFB senior director of local government.

To determine if a delivery

Estate

Continued from page 1 costs and expand health insurance deductibility to apply to employment taxes paid by selfemployed businesses.

When farm or other businesses convert from “C” to “S” corporations, they must hold appreciated assets for up to a decade to avoid tax penalties, and by reducing the gains holding period for “S” category corporations, the bill would increase access to capital, AFBF argued.

House Ways and Means Committee member Aaron Schock, a Peoria Republican, continues to push a measure that would allow small businesses to deduct 20 percent of income from taxes no matter how the businesses are organized, up to 50 percent of federal W-2 wages. In some cases, distributions made to business partners could be treated as W-2 wages.

tion-USDOT.htm}. A farmer will need to use the specific pin number he was assigned.

To make the change via fax, send the completed form to 703-280-4003.

A farmer also may mail a completed form to FMCSA, but expect it to take four to six weeks before the change is made using this method.

Rund also reminded farmers that being exempt from the USDOT number does not relieve them of the require-

ment to comply with other motor carrier safety regulations, such as the commercial driver’s license (CDL), record keeping and medical card requirements. Those and many other rules still can apply to them.

More on this topic may be found on the IFB website at {www.ilfb.org/policy-andissues/current-issues/transportation-andinfrastructure.aspx}. — Kay Shipman

Energy incentives A renewed “green energy” push also is powering potential tax measures. Beyond the biodiesel fuel credit, AFBF seeks extension of a small biodiesel producer tax credit to spur development in line with federal biofuels mandates, credits for biomass-based diesel fuels, incentives for alternative energy refueling facilities, and production tax credits for cellulosic biofuels and wind- and biomass-generated power.

Last week, Ag Secretary Tom Vilsack lobbied to extend clean energy manufacturing credits. In a news conference with Vilsack, Novozymes President Adam Monroe argued a 30 percent “advanced energy manufacturing” tax credit “without a doubt” enabled his company to launch a new enzyme plant in Nebraska.

Economic health Finally, lawmakers continue

to eye the tax and economic implications of new health care law. The House’s bipartisan Protect Medical Innovation Act — possibly up for a House vote this week — would repeal a planned 2.3 percent excise tax on medical device production beginning in 2013.

The new tax could impact businesses such as Cook Polymer Technology, which opened a new plant in Canton to produce goods including polytetrafluoroethylene tubing used widely by the medical community. Canton Mayor Kevin Meade argued Cook’s local facilities “have turned this city around.”

“Our unemployment rate has dropped a full percentage point, and we are seeing a revitalization of our downtown,” Meade said. “This device tax is taking the money that a company like Cook would use to bring jobs and opportunities to places like Canton.”

FarmWeek Page 4 Monday, June 4, 2012

energy

Farm bill $$ deemed vital to biofuels growth

BY MARTIN ROSS FarmWeek

Researchers and ethanol entrepreneurs are gearing up for a prospective era of ramped-up, “feedstock-neutral” production — that is, if the bushels are available.

Renewable Fuels Association President Bob Dinneen reported “we are building up to accommodate more and more ethanol.” In an RFD Radio-FarmWeek interview, he noted increased adoption of biofuels blending equipment at fuel terminals and, in Florida, development of ethanol pipelines.

“It’s a question of the mar-

ket being ready –- the infrastructure will soon follow,” Dinneen argued.

But the infrastructure — particularly feedstock production infrastructure — could use a boost. The 2008 farm bill’s revised energy title was crafted to help the industry nurture new energy crops and crop residue collection and transportation practices needed to meet the long-term cellulosic fuel mandates of the federal Renewable Fuel Standard.

The Senate Ag Committee proposes what the “advanced biofuels” industry characterizes as a healthy $800 million

RFS2 ‘study group’ motivations suspect?

As ag and biofuels interests battle efforts to eliminate the federal Renewable Fuels Standard (RFS2), Senate aides are joining in a new study group aimed at a “seed-to-wheel examination” of the mandate.

The group’s goal reportedly is to determine which RFS2 provisions are working. The Biofuels Investment and RFS Market Congressional Study Group plans to examine market, environmental, and food price impacts; available feedstocks; biofuels infrastructure and logistics; and the views of biofuels customers and end users.

Group founders are oil state Sen. James Inhofe (ROkla.) and Sen. Christopher Coons (D-Del.), who has come under pressure from poultry producers to allow reduced ethanol mandates in years when corn production falls below projections.

Inhofe stated “I’ve had problems with ethanol for as long as I can remember, and I’m going to be doing what I can to relieve that and do away with the mandate, actually.”

“We have some concerns as to the tone and ultimate outcome of this effort, given that it is being led by members with significant special interests in their home states diametrically opposed to renewable fuels,” the Renewable Fuels Association stated.

“The RFS ought not be sacrificed to appease a few special interests seeking corn at below-market prices or further perpetuating America’s unsustainable addiction to imported oil.”

The National Corn Growers Association was working on a response to the announcement Friday.

Illinois Corn Growers Association/Corn Marketing Board spokesman Dave Loos argued that “if the study group uses real science and factual information, the conclusion will be that corn starch ethanol has been a tremendous success story for the U.S.” Corn-based ethanol has been the major force in helping the RFS2 meet legislative energy independence and environmental goals, Loos said. Because the industry is producing more ethanol than is required under the RFS2 for conventional biofuels, output is moving into export channels, “which is also reducing our trade deficit,” he told FarmWeek.

“What is completely lost on people is that corn ethanol is meeting all of these goals while at a price of $1 per gallon cheaper than gasoline without any subsidies,” Loos stressed. “This is a great deal for the consumer.

“Congress is putting the consumer at huge risk by threatening the ethanol industry and agriculture with the political agendas of special-interest groups. The Congress should be aware that this country cannot afford a downturn in the agriculture sector and rural economies through their attacks on ethanol.” — Martin Ross

in five-year energy title funding. That includes $193 million for the Biomass Crop Assistance Program (BCAP), $130 million for a biomass research and development initiative (BRDI), $216 million for biorefinery assistance, and $15 million to help foster biobased markets that could tap biofuel processing co-products.

Sens. Kent Conrad (DN.D.) and Dick Lugar (R-Ind.) powered the biofuels funding push — the original committee draft included no mandatory energy funding.

Agriculture Energy Coalition Director Ryan Stroschein warned a House Ag Committee panel that BCAP is the only program of its kind, and without it, growers would be “reluctant to embrace these crops and forest residues due to the risk involved.”

BCAP provides assistance to owners and operators of farm and eligible private forest lands who wish to establish and deliver biomass feedstock crops. Annual payments are available to farmers who

produce eligible biomass crops on contract acres within approved BCAP “project areas.”

Further, the 2008 farm bill made matching payments available for delivery of material to qualified biomass conversion facilities that plan to produce advanced biofuels, heat, power, or biobased products. However, BCAP funding was slashed in 2011, temporarily eliminating matching payments.

Edwardsville’s National Corn-to-Ethanol Research Center (NCERC) was chartered to develop corn’s biofuel potential. In late May, NCERC announced success in processing cellulosic bran from the corn kernel, potentially boosting ethanol yield from each bushel of corn.

That’s generated a considerable buzz throughout the

industry — “We have fielded calls literally from coast to coast, border to border,” NCERC Director John Caupert told FarmWeek. Caupert sees the development as a potential game changer not only for the corn ethanol sector but for prospective processors of all forms of biomass, as well.

“Part of our mission moving forward is to name the next cellulosic feedstock,” he said. “Maybe it’s corn stover, but maybe it’s miscanthus.

Maybe it’s switchgrass. Maybe it’s a dedicated energy crop we’re not even familiar with.

“Our vision moving forward is really to become feedstock-neutral. I think that with the technology we’ve now demonstrated, we’re much, much, much closer than a lot of the naysayers say.”

House bill threatens ‘green’ military, biofuels progress The best opportunity for advanced biofuels development could start with the Defense Department, according to Purdue University energy economist Wally Tyner. But House lawmakers already have launched a major offensive against a greener military.

Tyner sees “a lot of progress on the cellulosic front.” But he believes the ultimate focus of biomass-based production will be not on boosting conventional ethanol yields but on developing more efficient “drop-in” fuels that require no blending with gasoline.

Citing emerging thermochemical processes and “hybrid” processes that use a mix of heat, chemicals, and microorganisms to convert feedstocks to fuel, Tyner anticipates introduction of products such as “biogasoline” or new “green diesel” or jet fuels.

“I think it’s quite possible that the military will take the lead,” the economist told FarmWeek. “The Air Force has (tentatively) committed to have 50 percent of its domestic fuel from renewable sources by 2020.

“That’s a lot of fuel, and if they can get legal clearance to contract for it, they could bid out some plants and get them built. Once we get two or three or four plants built, then the industry is moving, we learn a lot in that process, and things can move faster.”

That could open the door for use of vast stores of corn stover, poplar wood and wastes, switchgrass, and miscanthus, he suggested.

Drop-in fuels offer “flexible” marketing options and could be used with existing fuel infrastructure, and, according to Tyner, “that’s extremely important.”

Unfortunately, the military has come up against an unusual potential roadblock.

House Republicans passed provisions in defense authorization legislation that would

block efforts to incorporate more renewable fuels.

The bill now heads for markup in the Senate Armed Services Committee, where a battle over biofuels provisions is expected.

In response to a letter of protest from key Senate Democrats, Navy Admiral Jonathan Greenert warned attempts to obstruct the military’s transition to alternative fuels “will impede America’s energy security.”

The House measure, spearheaded by Colorado lawmakers, would affect the Department of Defense’s ability to procure renewable fuels and would further increase U.S. reliance on fossil fuels, “contributing to geopolitical instability

‘I think it’s quite possible that the military will take the lead.’

— Wally Tyner Purdue University energy economist

and endangering U.S. interests abroad,” Greenert stated.

Senate biofuels proponents reported the military consumes approximately 300,000 barrels of oil per day, and noted reports that the Pentagon’s annual fuel bill rises by $130 million for every dollar increase in per-barrel oil costs.

“Energy independence is more important to (the military) than it appears to be for consumers,” Tyner maintained. “It’s really important to them, and you can understand why.” — Martin Ross

Page 5 Monday, June 4, 2012 FarmWeek

FArm SAFETY

Training the trainers goal for safety coalition

BY MARTIN ROSS FarmWeek

Class was in last week as a coalition of Illinois farm and related interests fine-tuned lesson plans for a prospective corps of safety trainers.

During a two-day meeting in Bloomington, producer, agribusiness, university, and health care representatives developed a final curriculum for use in a pilot “Train the Trainer� program focusing on grain bin entry, entanglement, farm fall, and confined-space hazards.

Armed with federal Occupational Safety and Health Administration grant funding, Illinois’ Grain Handling Safety Coalition (GHSC) hopes to recruit and train as many as 60 initial local safety education specialists.

As a field instructor with the Illinois Fire Service Institute, coalition member David Newcomb has helped educate emergency responders from

throughout the state in ag-specific rescue procedures. “You can use a lot of the same techniques for prevention that we use in rescue,� Newcomb said. “If you’re going into a bin, you make sure things are shut off, you make sure the grain can’t move, you put yourself in a harness, and you secure yourself,� he told FarmWeek. “When we get there as a rescuer, we’re going to shut things down, make sure the grain can’t move, put on harnesses, and go do the work. “Hopefully, if we can get people into the same mindsets, that will slow our business down.�

Tapping farmers and other locally familiar faces should lend credibility to and, hopefully, spark interest in local training events, Newcomb suggested.

At the same time, Peggy Romba, Illinois Farm Bureau program manager and GHSC charter member, stressed

efforts to develop an easy-tounderstand, easy-to-teach grassroots curriculum. “We’re paring things down, trying to make things more fluid — we want to make sure this is the best product it can be,� Romba said.

While GHSC-trained trainers will work largely in a classroom setting, Newcomb notes

the value of “hands-on� training. Grain entrapment and power takeoff simulators and an array of protective gear were on hand last week.

Just as boredom and fatigue can endanger workers in the field, Newcomb stressed the need to keep local training sessions to a manageable timeframe that won’t unduly chal-

lenge participants. “Your mind will only absorb what your butt can endure,� he chuckled.

Individuals interested in becoming a GHSC safety trainer may contact Romba at 309-557-2007 or by e-mailing PRomba@ilfb.org or Carroll County Farm Bureau manager Chas Welch at 815-244-3001 or carrollcfb@grics.net.

SCALED DOWN SAFETY

Piatt County Farm Bureau board member Jonathon Manuel, right, helps teach area children about rollover protection during a recent Progressive Agriculture Safety Day. This spring, the Carle Center for Rural Health and Farm Safety trained nearly 600 students on the importance of safety through three safety days: May 4 in Gibson City, May 8 in northern Vermilion County, and May 15 in Piatt County. Combined, nearly 30 local businesses, 50 teachers and more than 130 volunteers helped to make the safety days possible. A Progressive Agriculture Safety Day is a one-day educational event designed to teach children responsibility when it comes to safety. Farmers and community organizations and businesses including Bunge Milling, Piatt County Farm Bureau, and Gibson Area Hospital, also participated in the safety days. (Photo courtesy of Carle)

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David Newcomb, a field instructor with the Illinois Fire Service Institute and a member of Illinois’ Grain Handling Safety Coalition, reviews prospective “Train the Trainer� curriculum that will be used to develop a corps of local safety educators. (Photo by Martin Ross)

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FarmWeek Page 6 Monday, June 4, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Since my last report, we have had two nice rains, both about 0.4 of an inch.

Crop conditions definitely have improved because of the rain, but we are going to need more warm weather. It only got up to 50 degrees here on May 31, down from the record high of 99 on Sunday, May 27. The rain totals were very different in different parts of the county, with 2-plus inches just west of Rockford and only 0.25 of an inch on the south edge of the county. Some of the soybeans that were lying in dry dirt should be growing now, and these two rainy days should help bring along the wheat crop.

Pete Tekampe, Grayslake, Lake County: It feels more like the middle of April, with temperatures in the mid-40’s. We received a little more than an inch of rain on Thursday. A lot of the corn is spotty. I don’t know if the rain was in time. Most of the beans are in and have just sprouted. Winter wheat turned fast and is looking fair. Some hay was baled early in the week.

Warmer weather and rain three of the next seven days are in the forecast.

Leroy Getz, Savanna, Carroll County: Record high temperatures in the 90s on Sunday (May 27) and Monday, Memorial Day, brought some storms across Northwestern Illinois.

Strong 70 mph winds and 0.85 inch of rain on Monday evening (May 28). Crops were really stressed from the high winds and dry days. Spraying was really difficult. On Thursday, the temperature was a cool 46 degrees and 1.25 inches of rain fell. That made the May total 3.05 inches. Crops look much better, and everyone’s attitude also is much better.

Ryan Frieders, Waterman, DeKalb County: The past week was filled with days of scorching heat and fierce winds.

There were duststorms and many raging fires in the area from the conditions. The corn was showing signs of stress by rolling its leaves. Soybeans did not grow in the past week.

Thursday morning, the temperature dropped by 50 degrees and a cold front brought an inch of rain and cooler temperatures to the area. Hopefully, the crops will benefit and begin to grow again.

Larry Hummel, Dixon, Lee County: Thank you, God! Thursday’s rain didn’t come any too soon. An all-day rain for a total of close to 1.5 inches will go a long way in relieving some of the problems out in the field. I spent the day Wednesday scouting and didn’t get very far, mostly because I ran into some things I had never seen before. One cornfield had symptoms of magnesium deficiency (white stripes on the leaves). Tissue samples will help with the diagnosis. Another field looks to have rootless corn syndrome. Some plants have very few nodal roots and they are surviving on the seminal roots (the roots that emerge from the seed). I have not heard a whole lot about it yet, but the dry weather seems to be a factor.

Ron Haase, Gilman, Iroquois County: It finally rained on May 31. We had a gentle shower that produced a range of rainfall of 0.5 to 0.75 of an inch. The only other rain we received in May was on May 7. Sidedressing of nitrogen, herbicide application, and roadside mowing were the major farm activities last week.

Corn development in the area ranges from V1 up to the V-7 growth stage. At V-6, the growing point moves above ground and the stalk is beginning a period of increased elongation. Area soybean development ranges from the V-1 growth stage up to the V-2 growth stage. At V-2 nitrogen fixation is beginning. Last year we were fighting mud at this time. This year has been the opposite with our dry soils. The local closing bids for May 31 were: $5.84 for nearby corn, $4.90 for new-crop corn, $4.84 for fall 2013 corn; $13.32 for nearby soybeans; and $12.36 for new-crop soybeans.

Joe Zumwalt, Warsaw, Hancock County: The crop continues to grow in Western Illinois, but without rainfall in many areas. This past week’s near 100 percent chance of rain left only most areas with a few tenths when inches are needed. The northern parts of Hancock County received some decent rainfall, but from about U.S. 136 south, very little moisture fell. Crops are beginning to show signs of stress, and another week or two without rain, may see yields start to decline. The corn ranges from V-2 to V-8 and the soybeans for the most part are 2 trifoliate and smaller. Area sprayers have been keeping up and many are mowing hay and roadsides. At least the forecast calls for average temps this week, but little chance of that much-needed rain. At least we know the crop is going to be well rooted this year!

Ken Reinhardt, Seaton, Mercer County: Memorial Day brought scattered showers with generally disappointing results.

The last day of May, however, produced a nice, slow inch of rain or more over the county. There are Pythium and rootless corn problems evident in corn planted the last week of April. Germinating in cold and wet weather, then growing in hot and dry weather has taken its toll on that corn.

Some was replanted as late as last week. The rain will sure give everything a big boost.

Ron Moore, Roseville, Warren County: We received 0.8 of an inch of rain last Thursday. It was a welcome relief to the hot and dry conditions. The corn has now closed the rows in and has a dark green color. Most post spraying is done now on corn and the focus is on soybeans. Post spraying should start in earnest this week after the rain. There are no reports of any insect issues, but we continue to look and expect some increase due to the early spring.

Jacob Streitmatter, Princeville, Peoria County: Some showers moved across the area Thursday and the temperature cooled off a lot. With the extreme heat (Memorial Day) weekend, the corn was curling up to protect itself. The moisture was greatly needed as I found some soybeans lying in dry dirt.

All my replant corn liked the heat that pulled it out of the ground fast. The corn crop has a lot of thin spots throughout the fields. It will be interesting how much the plants can compensate.

Tim Green, Wyoming, Stark County: Thursday dumped about an inch of rain; we really needed it. The corn had been showing stress due to the hot weekend days. The rain will take the edge off. People are finished up spraying their corn and have started to spray beans.

Mark Kerber, Chatsworth, Livingston County: Rain at last. We went from May 7 to May 31 without a rain. It was getting very serious for us in the southern portion of Livingston County. The main concern was poor root development in corn as some plants were falling over. This 0.6 of an inch will revive everything for awhile. Nitrogen has been applied to corn and now spraying is the main event. Soybeans are small, but last year we were just planting them at this time.

Every year is different, with this one being no exception. Have you ever seen a year with everything ahead? Amazing what a warm March will do. All the markets have really gone down; imagine that.

Wilfred Dittmer, Quincy, Adams County: We had a few sprinkles since my last report time — enough to maybe wet the sidewalks, but we are still dry.

Rainfall here totals 1.7 inches for the month. Corn is looking good and growing, but it is a long way from the bin. A lot of soybeans emerged in the past week. I imagine combines will be rolling in wheat in another week. The hay guys are making hay, and lawn mowing has slowed.

Brian Schaumburg, Chenoa, McLean County: After enduring a record-setting heat wave, crops and farmers breathed a collective sigh of relief as May ended with showers and cooler temperatures. Generally 0.5 to 0.75 of an inch fell, leaving us to hope that this can be a bridge to the next rain event. We are at 50 percent of rainfall for the year, about 3 inches short for the growing season and are hopeful the trend changes soon. Rootless corn syndrome is evident in a few fields.

Narrow-row corn achieved canopy earlier than ever. My next big job will be to escort our June bride down the aisle. Where did the time go? Corn $5.91, $4.91 fall; soybeans, $13.15, $12.24 fall; wheat, $6.06.

Steve Ayers, Champaign, Champaign County: A general 0.4 to 0.5 of an inch of rain fell May 31 over the area with some amounts to an inch. Last Monday evening (May 28) we also received 0.32 of an inch in a fairly localized event. These rains will help with spotty soybean emergence in some fields. Corn is growing rapidly and looks good. Our USDA district has 100 percent of the corn planted with average height 12 inches and 97 percent of the soybeans planted with 77 percent emerged. Corn is rated 66 percent in good to excellent condition.

Carrie Winkelmann, Tallula, Menard County: The 1.05 inches of rain that we received last week gave us the majority of the 1.43 inches of rain that we received for the month of May. The rain was a boon to the corn crop, which soaked it up and is growing fast. The alfalfa leaf hoppers we scouted for last week were over threshold and were sprayed. The rain really made the alfalfa bounce back. Pumpkins are up and the rain saved my green bean crop.

Tom Ritter, Blue Mound, Macon County: Thursday brought some much-needed showers to the area but still came in on the short side with most people receiving 0.3 or 0.4 of an inch of rain. We really needed a good soaker. Cooler temperatures are helping the crops to progress.

They are looking a lot better than they did over Memorial Day weekend with 90degree temperatures and high winds. There are a lot of field operations going on at this time. Corn is knee high to waist high.

Soybeans are anywhere from just emerged to 6 inches tall. Farmers have started spraying some of the soybeans, but the majority of them will be sprayed with herbicide this week.

Todd Easton, Charleston, Coles County: Just when it was getting serious, our old friend rain came back to the area and gave much-needed relief to crops and producers’ nerves. Reports across the county vary from just under a half inch to over 0.8 of an inch that fell slowly and steadily through mid-day Thursday.

Hopefully, this will be the start to a new weather pattern because more precipitation will be needed soon. Both corn and soybean fields showed very little development from the previous week as they were in a defense mode in the hot and dry conditions. On the other side, wheat field development accelerated. Coles County wheat growers are planning to begin harvest this week, much earlier than I ever remember. Of course, the down side to the wheat maturing so rapidly is it means top end yield has surely been lost. How much will not be known until the combines roll.

Jimmy Ayers, New City, Sangamon County: This past week we received 0.3 of an inch on Thursday. Travel last week took us on a 12-mile venture and nearly all the cornfields in that area showed signs of leaf roll — the pineapple effect that many talk about. Most of the yellow corn has gone away. Corn is running anywhere from V-2 to V-8. It is looking pretty dark and lush, even after the dry spell we had. I don’t think 0.3 of an inch will fix it, but it certainly will help. Beans were emerging but are spotty in many fields because of the dryness. The rain may take care of that. A few fields of beans were being sprayed. Most of the corn has been sprayed.

Page 7 Monday, June 4, 2012 FarmWeek

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: Rain of 0.6 of an inch — just what we needed.

Some were spraying beans with Roundup last week if they had weeds that weren’t killed when they planted. Wheat is about 10 days off. Corn is V-2 (replant) and V-5 to V-6 for the March and mid-April corn. We had a few spotty stands of beans in the county but the rain should help that. The deer are enjoying the new delicate beans and I am not enjoying the deer. I’m headed to a King’s Island bachelor’s party with my sons, Elliott’s friends, and his future father-in-law. Markets have been mostly on a downhill ride.

Rick Corners, Centralia, Jefferson County: As my granddad used to say, “When it is raining, even if it is just sprinkling, it’s not getting any drier.” But these little sprinkles don’t add up very fast. We had 0.2 of an inch Monday; 0.3 of an inch Wednesday, and the heavy rains we were supposed to get Friday totaled three drops in the rain gauge. Oh well, at least it didn’t hurt the wheat that is ready to be cut. Wheat harvest will get going when it dries off. The early corn is starting to get roots down and is looking good. But the laterplanted still looks pretty ragged. Bean stands are pretty spotty.

David Schaal, St. Peter, Fayette County: We had muchappreciated rain Thursday afternoon, and again it varied from a few tenths to more than an inch in the county. Farmers are sidedressing corn, monitoring bean stands, and mowing roadsides.

No wheat has been cut yet in the area, but this week harvest will begin. Temperatures have really cooled down compared to Memorial Day weekend and the beginning of the week. Corn is really beginning to take off, and producers ended up with better beans stands than anticipated. Grain prices seem to still be sliding downward.

Kevin Raber, Browns, Wabash County: It’s hard for me to believe that another month has passed. Crops have started to look better. Rainfall of about 0.4 of an inch and more moderate temperatures have helped, but we are still very short on soil moisture. Wheat harvest has started. I have seen a few fields with some acres cut. I was hoping to get to the wheat field, just to say I cut wheat in May, but I didn’t make it.

Dean Shields, Murphysboro, Jackson County: The weather last week was very dry again.

A few showers went through and dropped rain in a few places — some more than others. It was still very dry. Nine to 10 inches below normal. The corn and the soybean crops are not growing as well as they should. All the corn is planted. Soybeans that are not planted are waiting for some rain. Wheat harvest kicked off last week.

Lack of rain probably kept the disease down.

I had wheat for the first time in a few years and it turned out pretty decent, taking everything in consideration. There is no moisture so no one is double-cropping beans. We had no rain on Thursday.

Randy Anderson, Galatia, Saline County: The major event for the past week: We received half of our monthly rainfall — 0.3 of an inch. The corn crop is showing significant signs of drought stress. Wheat harvest is progressing well with yields running five to 10 bushels less than average. I feel this is from spring freezes and extreme dry conditions. No double-crops will be planted until we receive an inch or more of rain.

Ken Taake, Ullin, Pulaski County: It was another hot, dry week here in Pulaski County. We missed the rains that came through Thursday. Corn and beans still have pretty good color considering the amount of rainfall we have received. Some of our last-planted soybeans are sitting in dry dirt. Wheat harvest started last week after the holiday. It sounds like it will be an average crop with above-average quality. I think most beans will have to wait for a rain before they get planted.

Dan Meinhart, Montrose, Jasper County: Showers moved through the area Monday night (May 28) and again Thursday afternoon leaving various amounts of rainfall. Most areas received little or none while isolated areas got an inch or more.

The early part of the week was hot and windy. The latter part was cooler and more comfortable. There are still fields of beans to be planted. Farmers are waiting for moisture. Some fields have spotty stands due to lack of moisture.

Hopefully, those areas received enough rain to complete germination of the seeds.

Wheat harvest will start this week.

Combines are out of the sheds being prepared for harvest. Sidedressing of corn has continued. There is a slight chance of showers this week.

Jeff Guilander, Jerseyville, Jersey County: Another week down and the story is different for just about everyone. Some neighbors have had heavy rain in the last 10 days with hail and high winds, while most of us are thankful for no hail but have less than an inch of rain in the last month to show for it. I do not think anyone has a handle on what to expect out of this corn crop. Right now nothing would surprise me. The one thing I do know is the weeds are coming, especially where the corn is stunted. But with no measurable rain in the forecast, any residual herbicide may be wasted. Most bean fields are planted and have fair emergence.

The little rain we had last week (0.4) may help, but with the extended forecasts looking dry and hot this crop already has an uphill battle. At this point, getting this crop back up to average looks like a long shot, but time will tell.

Dave Hankammer, Millstadt, St. Clair County: The week ended with approximately 0.4 of an inch total rainfall from two separate showers. The second shower provided the greater benefit due to overcast skies and cooler temps, allowing the moisture to move to the root zone of the growing crop. Daytime temperatures cooled down to the low 80s from the previous week’s highs in the mid-90s.

The corn is quickly growing due to the cooler temps. Plant height ranges from 4 inches to waist high. There are areas with seed lying in dry soil waiting for moisture to germinate. Hopefully, we received enough moisture to get these areas growing. Many of the early-planted soybean fields have emerged. However, some of seed also is in dry soil. Hopefully, the rain was enough to get them sprouted and keep them growing.

Some farmers tried to combine wheat last week, but found that the crop isn’t as mature as it appears. After inspecting our fields, I noticed the grain is still soft and a substantial number of stalks with green color remains. Local grain bids are corn, $5.07; soybeans, $13.34; and wheat, $6.13.

Reports received Friday morning.

Expanded crop and weather information available at FarmWeekNow.com

Entomologist: Scout early for corn rootworms

BY DANIEL GRANT FarmWeek Crops aren’t the only living things developing early in fields this season.

Mike Gray, University of Illinois entomologist and crop sciences Extension coordinator, last week noted corn rootworm beetles are expected to emerge in Illinois cornfields in a matter of days.

Second instar corn rootworm larvae were observed late last month by Joe Spencer, entomologist with the Illinois Natural History Survey, in a research plot near Urbana.

“It’s been so hot and dry (prior to the arrival of a cold front late last week), it sped up larvae development,” Gray said. “Adult (rootwor m) emerg ence is expected to occur around June

11 or 12, which would be a full three weeks early.”

The early arrival of rootworms could put more pressure on small-rooted corn plants, according to Gray.

It is possible that Bt hybrids even could sustain more root injury than expected.

“If we return to hot and dry conditions, heavy infestations of larvae could take their toll

on small root systems,” Gray said.

The northern two-thirds of Illinois is more prone to corn rootworm damage.

The mild winter and warm spring this year accelerated the emergence of other insects ranging from black cutworm m o t h s a n d a r m y wo r m s t o Japanese beetles.

“The insects hatching early is

a function of the rapid accumulation of heat units,” Gray said.

Fortunately, cutting injuries to corn plants from black cutworms moths haven’t been as severe as expected. But Gray urged farmers to keep scouting for other problems.

“A number of areas of the state are abnormally dry,” he added. “We should keep an eye open for spider mites.”

Japanese beetles are beginning to emerge

BY KEVIN BLACK In Illinois, Japanese beetles typically start to emerge by mid-June, but emergence has started much earlier this year — at least two weeks ahead of schedule and almost exactly two weeks earlier than last year. Northern areas may not reach peak emergence until almost mid-July.

Individual beetles live for an average of four to six weeks. Staggered emergence guarantees that feeding and egg laying activity will occur over eight weeks or more, with peak egg laying roughly coinciding with peak emergence.

Beetles are sometimes observed into September.

Japanese beetles are promiscuous, mating several times, with this activity punctuated by periods of feeding and egg laying. Female beetles lay a total of 40 to 60 eggs,

batched out over several egg-laying events.

Our primary concern is with corn and soybeans, two crops commonly attacked

by Japanese beetles.

Both beetles and their grubs are pests in these crops.

In soybeans, Japanese beetles are primarily a defoliating pest. The beetles feed near the top of the soybean plant, so damage often is not as bad as it looks.

Soybeans can withstand up to about 40 percent whole-plant defoliation prior to blooming and pod fill before insecticide use is needed.

With high cash value for soybeans and current dry conditions, it may be prudent to treat soybeans a little on the early side to help spare the plants from excessive stress.

In corn, Japanese beetles will cause some defoliation, but the primary damage is silk clipping. The beetles are hardly attracted to corn until tassels and silks begin to emerge.

Insecticide use may be justified when fewer than 50 percent of plants have completed pollination, beetles are actively feeding, and silks are being clipped to less than a half inch.

Emergence of Japanese beetles signals the end of grub feeding from this species in row crops.

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

FarmWeek Page 8 Monday, June 4, 2012

ArouNd IllINoIs

Warmest spring on record; forecast ‘not real promising’

BY DANIEL GRANT FarmWeek

The cool, rainy weather late last week could be just temporary relief from what otherwise has been a warm, dry weather pattern for much of the year.

Jim Angel, state climatologist with

FarmWeekNow.com Listen to Jim Angel’s comments about Illinois weather at FarmWeekNow.com.

the Illinois State Water Survey, last week reported the average temperature for the climatological spring (March through May) was 59.1 degrees, which is the warmest on record dating back to 1895.

The previous record for the average spring temperature was 57.3 degrees in 1977.

“It’s impressive to not only beat the old record but to do so by more than a degree,” Angel told FarmWeek. “You don’t see that very often.”

The average temperature for the first six months of this year, 48.8 degrees, also is the warmest on record. The average temperature in May was 68.1 degrees, 5.7 degrees above normal.

“This time of year the sun is not quite strong enough to deliver 90-degree heat on its own (this far north),” Angel explained. “What we’ve been doing is pulling warm air out of the Gulf of Mexico. We’ve been dominated by a southern flow all spring.”

Unfortunately, the pattern has not been accompanied by ample precipitation.

Rainfall for the climatological spring averaged just 7.71 inches, 3.65 inches below average, which made it the 18th

driest spring on record.

Rainfall in the state in May averaged 2.4 inches, 1.8 inches below normal.

There were widespread showers last week, but most totals were limited to less than an inch. The exception was portions of Northern Illinois that received as much as 4 inches, Angel reported.

“The problem now is we’re losing (precipitation) much faster than it’s falling from the sky,” said Angel, who noted evaporation in May totaled more than 5 inches in some areas.

The forecast for the first half of this month is “not real promising” as a continuation of above-normal temperatures and below-normal precipitation is expected, Angel said.

Hot, dry conditions already have started to stress young corn plants, according to Bob Nielson, Purdue Extension agronomist.

“The success or failure of the initial development of the corn plant’s nodal root system greatly influences the success or failure of the young corn plant in transition from life support, using kernel reserves, to relying on the developing nodal root system,” said Nielson.

He noted corn younger than the V3 stage can appear healthy and uniform because it’s relying on kernel reserves.

In several areas of the state, corn a foot tall or less was curling its leaves in the middle of the day.

The average height of the corn crop statewide last week was 7 inches compared to the average of 4 inches.

Illinois far mers as of the first of last week had 20 percent of the soybean crop left to plant.

Woodford County specialty crop operation caters to ‘herb’-ivores Anybody who visits the Green Acres Herb Farm, Lowpoint, will find that Illinois farmers are good at growing more than than just corn and soybeans.

Don and Caroline Schertz, owners/operators of the farm, currently grow more

than 400 types of herbs, 50plus varieties of heirloom vegetables, and flowers.

“I’ve loved plants all my life,” said Caroline, who as a young girl learned about the usefulness of wild plants from her grandmother. “We started growing (the herb

operation) in the 1980s.”

The Schertzes had a 25square-foot vegetable garden in the 1970s. They expanded in the 1980s, built their first greenhouse, and later added a larger greenhouse.

They sell most of their herbs, produce, and plants at

farmers’ markets.

“When we started, everything (marketed) was culinary herbs,” Caroline said.

“Then we started going to craft shows with truckloads of plants (and found a broader demand base).”

The Schertzes use plastic culture for the production of their crops to cut down on weed pressure but still employ many local high school students to help with manual labor on their 5.5acre operation.

“We mostly hire neighborhood high school kids. For many of them it’s their first job,” Caroline said. “They learn it’s work. I promise them two things — that by the end of the summer they’ll have muscles and a tan — when they work for us.”

Herbs grown in Illinois are annuals (which need to be replanted each year), perennials (which produce seed and come back on their own), or biennials (which grow in the first year, flower

in the second year, and die).

Some of the popular annuals in Illinois are basil and cilantro. Key perennials include oregano, sage, and mint. Parsley, while technically a biennial, is treated in Illinois like an annual due to overwintering issues.

The Schertzes recently opened a new shop/outlet center on their farm.

They also own other land that is farmed by a neighbor who grows corn and soybeans.

The historic farm got its name in 1925 when it was registered as Green Acres Stock Farm. The name later was changed to Green Acres Herb Farm.

The family’s farming tradition will continue as the Schertzes’ granddaughters, Megan Greenhalgh and Abby Harding, are in the process of taking over the specialty crop operation.

For more information, visit the website {www.greenacres herbfarm.com}. — Daniel Grant

Caroline Schertz, left, checks a flat of strawberries with her granddaughters, Abby Harding, left, and Megan Greenhalgh, at the family’s Green Acres Herb Farm in Lowpoint. Don and Caroline Schertz grow more than 400 types of herbs and recently opened a new outlet shop on the farm. They plan to let their granddaughters eventually take over the business. (Photo by Ken Kashian)

Page 9 Monday, June 4, 2012 FarmWeek

AG ChAllENGEs

Carp partnership plans expanded monitoring, controls

BY MARTIN ROSS FarmWeek

Efforts to keep the voracious Asian carp at bay and key Northern Illinois locks on line are set to kick into high gear under an aggressive new monitoring/control plan.

The Asian Carp Regional Coordinating Committee (ACRCC) has released its 2012 Asian Carp Monitoring

Jobs, which includes Illinois Farm Bureau and state corn and soybean groups.

The 2012 plan continues existing strategies for monitoring in the CAWS and the Illinois and Des Plaines rivers, as well as charting new approaches for capturing or repelling small populations of Asian carp and a strategy for rapid response in the event the carp are found above an

‘We feel like what we’re doing is working, but we have to continue to evolve .’

— Chris McCloud Illinois Department of Natural Resources

and Rapid Response Plan (MRRP), which outlines prospective actions to track and remove Asian carp from the Upper Illinois River and the Chicago Area Waterway System (CAWS).

The objective of the federally funded plan is to prevent establishment of the invasive species in the Great Lakes. Concerns about possible movement of the predatory fish into Lake Michigan have spurred proposals by some neighboring states to close Chicago-area locks.

More than a million tons of goods travel through area locks annually, according to the coalition Unlock Our

electric dispersal barrier system in the Chicago Waterway.

Illinois Department of Natural Resources (IDNR) Assistant Director John Rogner cited new strategies aimed at removing Asian carp not only from major waterways but also “from public fishing ponds to fish markets.”

IDNR spokesman Chris McCloud sees a firm joint state/regional/federal commitment to control the carp — a federally funded commitment free from Illinois budget constraints. “If we did not have the federal funds to do this, we would not be able to do what we do,” he said.

IDNR works closely with the U.S. Fish and Wildlife Service, U.S. Geological Survey, and the U.S. Army Corps of Engineers, and uses what McCloud terms a technological “tool box” includes advanced underwater imaging sonar and acoustic water guns that scare carp from crucial locations.

“This is something we have the ability to build on from year to year,” he told FarmWeek. “We have the ability to look at the past and see what’s worked well, what’s needed to be tweaked, what things should be added based on new or emerging technology and data we collect throughout the season.

“The sea lamprey program is a good example. Now, we have a lampreycide that can control their populations in Lake Michigan. We don’t want Asian carp to be the next sea lamprey. We feel like what we’re doing is working, but we have to continue to evolve with new technology and with new data to stay on top of it.”

Over the last several years, IDNR has contracted with commercial fishermen to remove Asian carp along the Illinois where populations were known to exist. The harvest has been focused in downstream areas such as Morris and Starved Rock, in part “to take pressure off the barriers,” McCloud said.

The average size of carp captured has declined, indicating success in culling the mature predator population, he related.

GETTING COMPETITION READY

Alice Marriott, left, of rural Mt. Carmel in Wabash County works with Kashaiah Smith of Bone Gap to prepare a Saanen breed milking yearling goat for competition at a show in Indiana. Marriott’s husband, Leland, and their son, Matthew, grow corn, soybeans, and wheat, in addition to raising their meat and dairy goat herd. (Photo by Ken Kashian)

Catching carp New measures included in the Asian Carp Regional Coordinating Committee’s 2012 carp monitoring/control plan include: • Surveillance of fishing ponds using “electrofishing” gear, nets, and “eDNA” genetic sampling to detect and remove any live Asian carp that may have been introduced to ponds through contaminated shipments of stocked sport fish. In addition, the plan calls for surveillance of local fish markets, wholesalers, and fish import/export businesses to determine if live Asian carp have been harvested with other species.

• Addition of random electrofishing and netting sites within the Chicago Area Waterway System, along with a revised eDNA monitoring strategy.

• Added hoop nets and mini-nets to improve detection of both adult and juvenile Asian carp.

• Studies to investigate how adult and juvenile silver and big head carp (pictured above left and right) move downriver from an electric fish barrier near Chicago.

• Expanded evaluation of fish movement near the barrier and throughout the Chicago-area waterway, via an expanded network of acoustic telemetry receivers that can track fish and increased use of tagged Asian carp.

• New protocols for use of acoustic water guns and emerging technologies such as side-scan sonar that uses sound waves to create images of large underwater areas and DIDSON imaging that works effectively in dark, turbid waters.

• Use of underwater video and imaging sonar for evaluating fish behavior at the barrier.

Wind energy focus of two-day conference The wind energy industry will be discussed July 17-18 at the sixth annual Advancing Wind Power in Illinois Conference in the Marriott Hotel and Conference Center, Normal. The event is sponsored by the Illinois Wind Working Group.

The two-day meeting will feature speakers on many facets of wind energy, including Illinois’ renewable energy policy, the state of wind energy in Illinois, zoning and siting ordinances, and school programs with wind energy.

Discussions by expert panelists will include wind turbine technology, power purchase agreements, environmental compliance issues, and the basics of small wind energy projects.

The registration fee is $125 until July 2 and $150 after that date. The fee includes conference materials and breakfast and lunch for both days.

To register online, go to {www.RenewableEnergy.ilstu.edu} and select the Illinois Wind Working Group annual conference under “upcoming events,” then select “to register.”

To register by mail, go to the same website and download and complete a registration form. Mail the form and a check payable to Illinois State University to: ISU, Center for Renewable Energy, Campus Box 5020, Normal, Ill., 617905020.

For more information, e-mail RenewableEnergy@ilstu.edu or call 309-438-7919.

FarmWeek Page 10 Monday, June 4, 2012

Page 11 Monday, June 4, 2012 FarmWeek

food

USDA: Healthy diet not necessarily more expensive

BY DANIEL GRANT FarmWeek

A healthy diet can be achieved by U.S. citizens, regardless of their income bracket, according to a recently released report by the USDA Economic Research Service.

Researchers estimated the cost of 4,439 food items and found in many cases grains, dairy, and fruits actually are less expensive than some foods that are high in sodium, sugar, or saturated fat.

“The idea that people of modest means can’t afford a healthy diet is not necessarily the case,” said Kevin

Concannon, USDA under secretary for food, nutrition, and consumer services.

“You don’t have to sacrifice nutrition because money is tight.”

The key to determining the affordability of various foods in the study was to measure cost vs. the edible weight or average portion size.

“We’ve all heard that healthy foods are more expensive. It’s often touted as a reason for not eating a healthy diet,” said Andrea Carlson, author of the USDA study. “But what we found is many fruits and vegetables are less expensive

GMO foods may be topic at Chicago AMA meeting

BY MARTIN ROSS FarmWeek

When the American Medical Association (AMA) meets this month in Chicago, doctors may be prepped for a renewed examination of biotechnology.

The Illinois State Medical Society (ISMS) and the Indiana State Medical Association recently requested that AMA study any existing GMO health issues and potentially any need for labeling of foods that contain ingredients from genetically modified crops.

AMA’s Reference Committee for Science and Technology accepted members’ comments on the subject through Sunday, prior to possible discussions at the association’s June 17 annual delegates meeting.

An ISMS spokesman told FarmWeek his group had forwarded its request based on an inquiry from a single member. Based on past AMA meetings, he suggested GMO issues likely “will get some discussion,” but noted “we don’t have much involvement on this front” and questioned whether AMA delegates would approve any new GMOrelated policies.

Illinois/Indiana requests were portrayed inaccurately as a push for GMO labeling by the Truth in Labeling Coalition, a group that includes a variety of natural and organic food marketers. American Farm Bureau Federation biotech specialist Kevin Richards notes “quite a few” labeling initiatives are circulating, promoted largely by consumer advocacy and “anti-GMO/anti-modern agriculture activist groups,” but he knew of no active efforts by major medical organizations.

Richards noted extensive federal assessment of the human health impacts of all approved GMO products. U.S. Food and Drug Administration (FDA) policy calls for labeling only where a product poses “material differences” in nutritional content or potential for allergic reactions, he said.

“Mandatory labels are intended to denote a material difference in the health or the safety of food,” Richards told FarmWeek. “By requiring a label, you are misinforming consumers and leading them to the assumption that that label is there to communicate some sort of health or safety message. That’s just simply not the case.

“This is simply not something that, unprompted, consumers are worried about. This is more something used by folks who oppose the technology and oppose the option for farmers to use the technology in modern agriculture as a scare tactic to steer the marketplace toward other products.”

Richards trusts FDA’s science-based approach to labeling, but is concerned about individual states “unilaterally pursuing a policy that is disruptive to the market, to the food chain.” He noted some form of legislative or organizational push for mandatory GMO labeling in 15 to 20 states, as well as an anticipated California fall ballot initiative and possible local initiatives in Oregon.

than less healthy foods using the price per edible pound.”

Items such as apples, oranges, bananas, raisins, whole kernel corn, baby carrots, fresh potatoes, and pinto beans are cheaper than many less healthy items, such as french fries, donuts, and soft drinks, when compared by the edible weight or average portion size.

Some previous studies that found healthier foods can be more expensive often compared foods by the single measure of price per calorie.

But that type of measure-

ment can make a chocolate glazed donut (240 calories) appear to be a better bargain than a medium banana (140 calories).

“We (as consumers) need to be aware of how the price is measured,” Carlson said.

“When you compare the price per calorie, fruits often are more expensive (because they’re low in calories),” she said. “But fruits and vegetables are less expensive than many less healthy foods using the price per edible pound.”

In fact, three recommended food categories that are under-consumed by many

Americans — grains, fruit, and dairy — are cheaper than many foods that are high in saturated fats or sugar, Carlson noted.

Consumers, however, will have to compare products to determine those that provide the best dietary bang for their buck.

“There are less healthy foods that are less costly,” Concannon said. “It takes sorting through to see what’s available.”

More information about dietary recommendations and how to eat healthy on a budget is available at the website {www.ChooseMyPlate.gov}.

Refiners group: FDA decision denies ‘overwhelming’ science HFCS and common “table sugar” contain When is sugar not sugar? According to the virtually the same levels of the “simple sugnational Corn Refiners Association (CRA), when the U.S. Food and Drug Administration ars” glucose, a major component of carbohydrates, and fructose, which is commonly (FDA) says so. found in fruits and honey.

Last week, FDA rejected CRA’s petition to use the term “corn sugar” in labeling high fructose corn syrup (HFCS) in the wake of sugar industry attacks on the common ‘The Sugar Association is waging a corn sweetener.

CRA, which represents comsilencing campaign, it is unseemly, and panies including Illinois’ Archer it is clearly not in the best interests of Daniels Midland Co. and Corn consumers.’

Products International, criticized the agency’s decision, noting HFCS is chemically and — Audrae Erickson “nutritionally equivalent to othPresident, Corn Refiners Association er sugars.”

FDA defined sugar as a “solid, dried, and crystallized” food, not a syrup. “(FDA) denied our petition HFCS is marketed in two for mulations: ... on narrow, technical grounds,” CRA PresiHFCS-42, which has 42 percent fructose dent Audrae Erickson said. “They did not and 58 percent glucose; and HFCS-55, address or question the overwhelming scientific evidence that high fructose corn syrup is with 55 percent fructose and 45 percent a form of sugar and is nutritionally the same glucose.

Table sugar contains a 50-50 blend of as other sugars.

“The fact remains — which FDA did not fructose and glucose. Cane- or beet-based sugars and HFCS have similar calorie challenge — that the vast majority of counts.

American consumers are confused about However, Dan Callister, an attorney with HFCS. Consumers have the right to know what is in their foods and beverages in sim- The Sugar Association, deemed CRA’s attempts to identify HFCS as a sugar “basiple, clear language that enables them to cally a con game.” make well-informed dietary decisions,” she “The Sugar Association is waging a silencsaid. ing campaign, it is unseemly, and it is clearly FDA nonetheless continues to classify not in the best interests of consumers,” HFCS as a form of “added sugar” and CRA’s Erickson maintained. “They are putrequire its identification in the category of ting profits before people, and that is unacsugars on a product’s Nutrition Facts panceptable.” el.

IDOA hosts seminar for food businesses Illinois food businesses will learn how to expand on a limited budget at a June 14 seminar sponsored by the Illinois Department of Agriculture (IDOA) bureau of marketing and promotion. The sign-up deadline is Tuesday.

The seminar will be from 9 a.m. to 4 p.m. at the IDOA building on the Illinois State Fairgrounds.

The topics will include social marketing,

websites, selling items on eBay, grant and loan opportunities, and exporting.

The cost, including lunch, is $30 for one person and $15 for each additional person from the same company.

To register, go online to {https://www.illinoisepay.com/epay/GetSite?cmd=get&siteId= 531} and enter SEMINAR2012 for the invoice number or call Jennifer Tirey at 217-782-8146.

FarmWeek Page 12 Monday, June 4, 2012

Spotlight on the CoUntieS

Fulton County FB hosts ‘adopted classroom’ on farm tours

BY ELAINE STONE

Fulton County Farm Bureau recently hosted its “adopted classroom” from Oaklawn’s St. Germaine School for a day of farm tours and activities.

Twenty fourth graders, two teachers, and nearly a dozen parents and grandparents trav-

eled 200 miles on a charter bus.

The group gained first-hand experience with beef cattle and other farm animals as well as farm machinery at the farm of Randy and Sue Farr and Ed and Sue Eckert.

While there, they were treated to a picnic lunch with the grill manned by Fulton FS employees.

Fulton FS employees Faron Reynolds and Shannon Chenoweth discussed the use of crop protectants and fertil-

izers and farm technology.

Fulton County ag literacy coordinator Tonya Holt helped the students with a hands-on activity before they climbed on a wagon for a hayrack ride to see cows and calves in a pasture.

The next stop was Curless Flying Service, Astoria, for a tour of the crop spraying business and its equipment.

Harley and Joe Curless, Bobby Blickenstaff, and J.T. Capers explained aerial spraying and related technology.

The group watched a fly-by demonstration before leaving for home.

Each month, the county Farm Bureau directors write the students about what they have been doing on their farms.

Pictures, videos, and lesson plans are included in the monthly mailings to the class.

Elaine Stone is the manager of Fulton County Farm Bureau. She can be reached at 309-547-3011.

Students, teachers, and parents from St. Germaine School, Oak Lawn, watch a flying demonstration by pilot J.T. Capers with Curless Flying Service, Astoria. The Fulton County Farm Bureau recently hosted its adopted classroom for tours and activities. (Photo by Elaine Stone, Fulton County Farm Bureau manager)

Indian Creek Watershed tour scheduled July 10 In addition, plots treated Farmer leaders of the Indian Creek Watershed Proj- with split-applications of fertilizer did not fare as well as ect will have their second field tour starting at 7:30 a.m. those with spring applications.

July 10 in the First Baptist “We’re finding that nitroChurch of Fairbury. gen application placement, Participants will learn amount, and timing can have about products, practices, equipment, and technology to a big impact on profitability,” said Terry Bachtold of the boost farm profits and Livingston County SWCD. enhance water quality. Registration is required.

The watershed project is facilitated

by Livingston County ‘ We ’r e f i n d i n g t h a t Soil and Water Connitrogen application servation District (SWCD) and the Con- p l a c e m e n t , a m o u n t , servation Technology and timing can have a Information Center big impact on prof(CTIC) and led by local farmers who itability.’ demonstrate and test conservation practices on their land.

— Terry Bachtold Livingston County SWCD Farmers are participating through conservation programs with the Natural Resources ConservaThe tour agenda includes a tion Service (NRCS). review of available financial and Several agribusinesses, universities, agricultural asso- technical assistance to support management changes. ciations, and conservation organizations lend support After the tour, participants and expertise to the project. will return to the church at The 2011 field trials deliv- noon for lunch. ered interesting results, To register, call Livingston including significant yield County SWCD at 815-844increases when farmers 6127, extension 3, or e-mail applied fertilizer in the Christa Jones with CTIC at jones@ctic.org. spring instead of in the fall.

Page 13 Monday, June 4, 2012 FarmWeek

from the counties

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ARROLL — Young Leader Committee members will host their annual Harvest for All Saturday, June 16. Last year, more than $22,000 worth of corn was collected and proceeds were donated to local food pantries. Young Leaders will make calls for grain donations. Call the Farm Bureau office at 815-2443001 to donate or for more information.

OOK — Farm Bureau has movie tickets for Regal Cinemas at a discounted price of $7.

Tickets also are available for AMC and Marcus Theaters.

Call the Farm Bureau office at 708-354-3276 to purchase tickets.

ENDALL — The Kendall County Soil and Water Conservation District will have its annual oil pickup from 9 a.m. to noon Saturday, June 16, at the GRAINCO FS facility on Route 47.

• The 4-H Fair golf outing will be at noon Wednesday, June 20, at Bliss Creek Golf Course. Cost is $85, which includes golf, cart, and steak dinner. Call the Farm Bureau office at 639553-7403 for reservations or more information.

• Farm Bureau will sponsor a bus trip Tuesday, June 26, to see the Chicago Cubs vs. New York Mets game.

The bus will leave Yorkville at 2:45 p.m. for the 7:05 p.m. game. Cost is $65.

Call the Farm Bureau office for reservations or more information.

• Applications for various scholarships are available at the Farm Bureau office. A $2,000 Dobbin Family scholarship and a Bob Brummel Memorial scholarship will be given to students who are pursuing ag degrees. Deadline to return applications is July 1.

ASALLE — Farm Bureau has theme park tickets available at a discounted price. Call the Farm Bureau office at 4330371 for park information and prices.

EE — Bureau and Lee County Farm Bureaus will sponsor their annual golf outing at 9 a.m.

Friday, June 29, at Timber Creek, Dixon. The tournament will be a four-person scramble. Cost is $200, which includes golf, cart, and lunch. All proceeds will benefit the Ag in the Classroom programs. Call the Farm Bureau office at

C

K

L L

815-857-3531 or go online to {www.leecfb.org} for more information.

• Carroll, Lee, Ogle, and Whiteside County Farm Bureaus, and Sauk Valley Bank will sponsor a marketing workshop at 7 p.m.

Wednesday, June 20, at the Comfort Inn, Dixon. Steve Johnson, Iowa State University Extension farm management specialist, will be the speaker. Call the Farm Bureau office at 857-3531 or e-mail leecfb@com cast.net by Friday, June 15, for reservations or more information.

EORIA — The Marketing Committee will sponsor a market outlook meeting at 6:30 p.m.

Tuesday, June 19, at the Farm Bureau Park. Darren Frye, Water Street Solutions, will be the speaker.

Tickets are $5 and include a ribeye sandwich meal. Tickets are available at the Farm Bureau office or from a board director.

• Farm Bureau will celebrate a Century of Service event from 10 a.m. to 6 p.m.

Saturday, June 23, at the Shoppes at Grand Prairie.

A tractor parade will be from 10 a.m. to noon followed by a tractor show from noon to 6 p.m. A toy show will be from 10 a.m. to 6 p.m. in the vacant Borders bookstore. Local farmers will bring a cow, pigs, sheep, a horse, and chickens to the event.

Local farm businesses will display farm equipment.

Porkburgers, chips, Prairie Farms ice cream, and drinks will be served from noon to 2 p.m. Call the Farm Bureau office at 309-6867070 for more information.

OCK ISLAND — Mercer and Rock Island County Farm Bureaus will sponsor a local government series. The first will focus on township government and will be at 6:30 p.m. Wednesday, June 20, at the Reynolds American Legion. A light dinner will be served. Jerry Crabtree, Township Officials of Illinois associate director; Kevin Rund, Illinois Farm Bureau director of local government; and Brenda Matherly, IFB assistant director of local government, will be the speakers.

Call the Farm Bureau office at 309-736-7432 or e-mail info@ricofarmbureau.org

by Wednesday, June 13, for reservations or more information.

P

R

• A market outlook meeting will be at 6:15 p.m.

Thursday, June 21, at the Moline Viking Club. A buffet dinner will be served.

Steve Johnson, Iowa State University Extension farm management specialist, will be the speaker. Mike Schaver, Gold Star FS grain merchandiser, will provide an update. Cost for the session is $20 if pre-registered or $30 for walk-ins. Call the Rock Island County Farm Bureau at 309-7367432 or the Henry County Farm Bureau office at 309937-2411 for reservations

or more information.

TEPHENSON — A Stroke Detection Plus event will be from 9 a.m. to 4:30 p.m. Monday and Tuesday, June 18-19, at the Farm Bureau office. Farm Bureau members will receive a discount on the package price.

Call 877-732-8258 to schedule an appointment.

• The Stephenson County Ag Breakfast will be from 6 to 10 a.m. Saturday, June 23, at the fairgrounds, Freeport.

The Stephenson County Farm Bureau Foundation will hold its annual silent auction fundraiser for

S

scholarships. Farm Bureau will sponsor a blood drive from 6:30 to 11 a.m. All first-time donors will receive a free season pass to the Stephenson County Fair, and all donors will be reimbursed for their breakfast.

More information is available at {www.stephensoncfb.org}.

• Seats are still available for the Cubs vs. Brewers ballgame Aug. 20 at Miller Park. The bus will leave Freeport at 4 p.m. Cost is $65 for members and $70 for non-members. Call 815232-3186 for reservations.

Nominations sought for Illinois State Fair honorees The Illinois State Museum Foundation is seeking 10 people to honor as Illinoisans of the Day at the 2012 Illinois State Fair.

The nomination deadline is June 15.

Winners will be selected for making a difference in their communities while showing Illinois spirit through hard work and dedication to helping others.

Each winner will be invited to receive gifts and honors on stage during his or her special day at the fair.

Nomination forms may be requested by calling the foundation at 217-415-4408.

Forms also may be printed from the museum’s website {www.statefairmuseum.org}.

All nominees must live in Illinois.

Winners and their nominators will be contacted by phone in late June to arrange for an August ceremony.

Winning names will be announced at the museum foundation’s annual kickoff on July 14 inside the Orr Building on the Illinois State Fairgrounds.

The Illinois State Fair Museum Foundation is a not-for-profit organization dedicated to preserving the heritage, traditions, and legacy of the Illinois State Fair.

FarmWeek Page 14 Monday, June 4, 2012

PROFiTAbiliTY

Now’s the time to see how seed enhancements performed

BY LANCE RUPPERT

The last time I wrote an article for FarmWeek it was late February. That article was centered around planting and getting the crop off to the best possible start.

Obtaining a uniform, full stand is of Lance Ruppert utmost importance in having a successful year.

One thing is for sure: It was

the earliest start I have ever experienced. The warm March weather, coupled with dry soil conditions, made it the earliest planting season ever in many parts of Illinois.

Many of those early-planted fields look very good. Some planted a bit later had some cooler, wetter weather to deal with. Now, extremely dry conditions have caused problems in other areas of the state.

Overall, there is the potential for a lot of variability in corn and soybean stands and growth stages.

HAY FOR HAMPTON

From a soybean standpoint, the use of seed treatments and seed enhancements has become more popular and effective. When I say seed treatment, I mean a fungicide and/or an insecticide applied to the seed.

A seed enhancement is an additional product that does something other than protect the seed from insects and diseases. These would mainly be growth promoters, inoculants, and potentially, micronutrients.

As the cost of soybean seed has increased, many growers have reduced seeding rates so a higher percentage of those seeds must germinate and grow to have the proper popu-

lations for adequate yields.

These products help accomplish that, as well as giving those young plants the best possible start to fulfill their potential.

This is a great time of year to take a look and see how those products have performed by evaluating your young soybean stands.

What is the field average for overall stand count/population?

What percentage of planted is your final stand? Did seed and seedling diseases cause an issue? Were insects a problem?

These questions and observations will tell you how well your seed treatment performed.

If you compare treated and untreated soybeans seed side by side, you may not only find differences in stand counts but also in early vigor and overall plant height. Seed enhancements are specifically designed to help with earlyseason growth and nodulation. This is the time to see what benefits they may have provided.

Give your local FS crop specialist a call, take a walk through the field, and do some investigating to see how your soybean crop is performing.

Lance Ruppert is FS Seed sales and marketing manager. His email address is lruppert@growmark.com.

Consultant: Trade adjusting to expanded hours increase market volatility or give brief trading advantages to large firms that can disseminate Most traders and farmers have adjusted or information in the reports quicker than indiseen little change in the markets since the vidual traders.

IntercontinentalExchange began offering corn, “Some in the trade have suggested there soybean, and wheat contracts 22 hours per day should be a short period (after the release of May 14.

USDA reports) And a similar where we cease uneventful trantrading,” ‘It is important that USDA continue to Whalen said. sition is expectensure the integrity of its report release “But I doubt ed next week when markets that happens. I process.’ are scheduled don’t think the to be open durexchanges will ing release of — Joe Glauber give up the volUSDA’s crop ume.”

USDA chief economist production USDA last report and world ag supply and demand estiweek announced it will review public release mates on June 12. times of its major crop reports and hold a The CME Group earlier this month public comment period. announced expanded floor trading hours at the “It is important that USDA continue to Chicago Board of Trade would continue durensure the integrity of its report release ing major USDA crop reports. process,” said Joe Glauber, USDA chief econUSDA reports previously were released pri- omist. or to the opening of the markets.

So far, the only glitch Whalen sees in the “It’s just one other thing we’ll get used expanded trade hours is the fact that the pits to,” said Hugh Whalen, commodity risk in Chicago close at 1:15 p.m., 45 minutes prior consultant for MID-CO Commodities. “I to the official close. don’t see this as a huge disadvantage for “In effect, we have two different closes,” farmers.” said Whalen, who anticipates that issue will be solved if or when the CME Group expands pit There are concerns by some in the trade that open markets during USDA reports could trading hours to 2 p.m.

BY DANIEL GRANT FarmWeek

Howard Warren last week collected some of the 50 bales of grass hay for Joe Hampton on a 15-acre field near Windsor in Shelby County. In addition to hay, Hampton, a former ag director, grows corn, soybeans, and wheat. He also raises angus cattle. (Photo by Ken Kashian)

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

40 lbs.

Range Per Head $28.48-$46.00 $57.85-$62.99

Weighted Ave. Price $38.53 $59.65

This Week Last Week 109,136 109,268 *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 $81.83 $79.89 $60.55 $59.12

Change 1.94 1.44

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 121.47 120.75 0.72 121.98 122.20 -0.22

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 152.30 152.33 -.03

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 110-160 lbs. for 138-163.62 $/cwt. (wtd. ave. 147.52).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 05-24-12 12.4 20.5 29.5 05-17-12 13.0 25.0 25.9 Last year 10.9 26.4 36.2 Season total 1146.2 1014.1 1192.6 Previous season total 1392.9 1255.3 1301.6 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Page 15 Monday, June 4, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Commodity indices confirm woes When the Continuous Commodity Index (CCI) closed below the uptrend off its 2008 low in December, it was a sign commodity prices in general might be turning lower. Even though it recovered into a minor high in February, it could never get back over that high. It also failed to sustain rallies above the 89-week moving average, an indicator we have long noticed with the CCI. When it dropped below last December’s 546.36 low in early May, the attitude regarding commodity prices quickly turned more negative.

Based on the action since the April 2011 high, it looks as though there is more shortterm weakness ahead. A close below 500 would position the index to fall toward a “swing target” at 460.75. Timing indi-

cators suggest that should happen sometime in the next couple of months with long-term and short-term lows due.

Looking at the accompanying graphics, you can see the inverse correlation between commodity prices and the value of the dollar. The dollar’s push past resistance at 82.60 tends to go hand-in-hand with potential to see lower shortterm commodity prices.

It’s important to remember the CCI is an index based on 17 different commodity futures. Even though it’s due to bottom midsummer, it doesn’t mean that grains will bottom at the same time. Individual commodities will “march to the beat of their own drummer” even though the general trend for commodities may be somewhat different.

At present, the short-term cycles for corn, wheat, and soybeans point to early September lows. That would position them to bottom after the CCI, but near their seasonal lows, albeit wheat would be a little late.

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Cents per bu.

ü2011 crop: The end-ofweek market may have offered a brief respite for the failing old-crop/new-crop price spread, but the process of old-crop prices gravitating to new-crop has started.

Because of that, you need to be more aggressive in pricing remaining old-crop supplies on rallies. Use rallies near $5.90 on July futures to wrap them up. ü2012 crop: Price another 10 percent if December hits $5.33. Use rallies above $5.30 on December futures to make catch-up sales. We prefer hedge-to-arrive contracts for making sales, but plan to tie up the basis by mid-summer. vFundamentals: Even though the crop ratings declined, we still have potential to produce a very good corn crop. Last week’s rains were a little disappointing, but forecasts for weather ahead are not as stressful as weather was prior to the recent rain event. We don’t expect any major surprises on the June 12 report. Traders expect USDA might lower its yield forecast 2 bushels. World economic problems hint of demand struggles in the year ahead.

Soybean Strategy

ü2011 crop: Economic problems, slowing export demand, and fund long-liquidation continue to drag soybean prices lower. The shortterm trend has turned down.

Use rallies to $13.75-$13.90 on July futures to sell old-crop soybeans other than “gambling stocks” you want to hold into summer. ü2012 crop: Leave an order to sell another 10 percent if November futures reach $13.25. Use rallies to $13 on November futures to get sales up to recommendation. vFundamentals: World economic woes and liquidation of long fund positions have been the driving force during the recent break. But the small export sales on last week’s report should not be ignored. If they continue to be small, it could suggest prices may have started the rationing process. There’s still

uncertainty about the size of double-crop plantings because of the dry soils, but if rains come in the next couple of weeks, producers will tend to “give it a shot.”

Wheat Strategy

ü2012 crop: The shortterm trend in wheat quickly turned down after the recent short-covering rally. Sales should have been increased 15 percent when Chicago July traded above $6.80, bringing them to 60 percent. If you failed to pull the trigger, make catch-up sales with Chicago July trading to $6.60. Producers selling 100 percent off the combine need to be aggressive making sales on rallies. The

futures carry makes it attractive to store wheat during the summer, but only if it’s priced or hedged. vFundamentals: There has been very little change in the overall wheat fundamental structure. Winter wheat harvest continues to progress rapidly, with reports of harvest in north-central Kansas, Southern Illinois, and Indiana.

So far yield reports have been mixed, but not quite as bad as some feared in Kansas. There is little question this year’s crop will be significantly better than last year. And weather changes have stabilized the Russian and Ukrainian crops.

FarmWeek Page 16 Monday, June 4, 2012

perspectives

A glimmer of hope for faltering economy The Great Recession started in the housing market. Housing construction boomed in the first half of the 2000s.

Home prices soared. Financing got “creative.”

Then home prices began to fall in 2007.

Falling home prices depressed home construction. With a glut of homes for sale, builders saw no reason to build more. Construction dropped to record lows.

Purchases of building materials and home appliances fell. Construction workers lost their jobs.

Falling home prices disrupted finance.

LARRY Homeowners found DEBOER themselves “under water” on their mortgages, owing more than their houses were worth. Default rates increased.

Some lenders went under; many others scaled back. Business and consumer lending was reduced.

Falling home prices discouraged consumer spending. Home values are a big part of household wealth. People were less wealthy because their homes were worth less. They cut back on their spending. Businesses reduced production and cut back on hiring. Unemployment increased.

The economy remains depressed, disrupted, and discouraged in 2012.

Housing is one reason. But maybe, just

maybe, there is a glimmer of hope.

Prices are determined by supply and demand, say we economists, so we need an index of housing supply and demand to understand price changes.

The monthly supply of homes from the U.S. Census will do. It takes the total houses for sale each month, and divides that number by the number of houses sold. The result is the number of months it would take to sell all the homes for sale at the current rate per month.

The number of houses for sale is supply. The number of houses sold — and bought — is demand.

When the monthly supply of homes is small, we’d expect prices to rise.

Homes are selling fast, and buyers are bidding against each other to get one.

When the monthly supply of homes is large, we’d expect prices to fall. Homes are languishing on the market, and sellers cut prices to try to make a sale.

Now, let’s measure the change in the house price index, adjusted for inflation. We’ll use the quarterly price index for new and existing homes from the Federal Housing Finance Agency.

During 1998-2006 this price index went way up, 5 percent per year on average, above general inflation. House prices have never increased that fast for so long. Then, from 2007-2011, prices collapsed, falling an average of 5 percent per year.

Next, compare our price index to our index of supply and demand. The

magic number seems to be seven months. Since 1980 the monthly supply of homes was less than seven months in 90 quarters.

The house price index went up in 76 of those quarters, 84 percent of the time. When supplies were tight, prices went up most of the time.

Since 1980, the monthly supply of homes was more than seven months in 38 quarters. The house price went down in 34 of those quarters, 89 percent of the time. When buyers were scarce, prices fell most of the time.

During the housing boom of the 2000s, the monthly supply was around four months. Prices shot upward. The monthly supply of homes first topped seven months in January 2007.

The price index began falling in the second quarter. By January 2009, the monthly supply topped 12 months — more than a year. Prices plunged.

With that plunge came a huge drop in home construction. Housing starts averaged more than two million a year during 2003-2006. They have averaged only 600,000 since 2009. We almost quit building homes. Very gradually existing houses were sold, and very slowly the monthly supply of homes

began to drop. It dipped below seven months in April 2011.

And, sure enough, in the second half of 2011, the home price index stopped falling. As of March 2012, the monthly supply of homes is 5.3 months.

Over the past 30 years, supply that tight almost always meant home price increases. We’ve sold our excess supply of houses, and now it’s possible for home prices to rise.

Maybe home prices have hit bottom and are about to turn around. If that happens, perhaps homebuilders will be encouraged, lenders will gain confidence, and households will start spending. And if that happens, our recovery could finally get going.

Larry DeBoer is an agricultural economics professor at Purdue University, West Lafayette, Ind. His e-mail address is ldeboer@purdue.edu.

Financial problems dog U.S. and other nations JP Morgan was considered the poster child for how to run a bank during the crisis of 2008.

It had the capital and ability to take over Bear Stearns in March 2008 when Bear got into trouble and still had enough capital to take over Washington Mutual later in the year.

It seemed to never have any serious problems and its chief executive officer, Jamie Dimon, seemed able to BRUCE dodge bullets.

FINKS Investors, then, were quite surprised by the revelation on May 10 of a $2 billion trading loss from derivative positions taken by the company.

To make matters worse, Dimon reported to investors that the positions are not completely closed out and that the losses could end up being higher.

Warren Buffet has described derivatives as “financial weapons of mass destruction.”

Banks made a lot of money trading securities from 1999

until 2008, but many subsequently got into big trouble because of the riskiness of their bets and the amount of leverage they employed.

The Dodd-Frank Bill, which passed in 2009 but still is being implemented, is trying to limit the amount of trading that banks can do for their own accounts. The banks are arguing that eliminating this source of revenue will not only hurt their profits, but will reduce liquidity in the markets.

Regulators believe that institutions with federal deposit guarantees should not be gambling with their equity, the loss of which could force the government to make depositors whole.

We have seen how costly such guarantees can be. The markets were unnerved because if something like this could happen to JP Morgan, who else might it happen to sometime soon?

The Greek debt crisis continues with political parties in Greece still trying to decide if they will apply austerity or stimulus measures to rescue them-

selves from their financial woes.

It is interesting that some politicians are equating austerity with

debt is probably not going to solve the problem. The fact that politicians are caving in to their

The three largest U.S. banks JPMorgan (JPM), Citigroup Inc. (C), and Bank of America (BAC) have the derivative positions shown above. The numbers are listed in trillions of dollars. As a point of reference, the U.S. gross domestic product is about $15 trillion per year so these are not trivial amounts. The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument.

economic contraction and further stimulus with economic growth.

It would seem obvious that if too much debt got you into trouble, then more stimulus and

constituents by not administering the harsh medicine is not being looked upon very kindly by the bond markets.

Greek yields had fallen from over 35 percent prior to the

debt restructuring to about 20 percent post restructuring, but have since risen closer to 30 percent because of fears that Greek politicians don’t have the intestinal fortitude to address and remove the problems plaguing their economy. We haven’t heard the last from Greece.

The Chinese economy is showing signs of slowing, which is also unnerving the financial markets.

Purchasing Managers Indices (PMI) are slowing markedly, and news on May 16 indicated that Chinese banks have not issued any net new loans during the past two weeks. Commodities markets around the world are declining on fears that China will not require the vast amount of materials it has been importing for the past several years.

Whether this slowdown will continue is unknown, but the Chinese have usually been fairly quick to stimulate their economy in the past, so this time probably will be no different.

Bruce Finks is the vice president for investments at Country Financial.