SeriouS DiScuSSion laced with laughter was evident w h e n I l l i n o i s Fa r m Fa m i l i e s “field moms” visited a hog farm earlier this month. ......................3
T H e A M e r i c A n FA r M Bureau Federation hailed inclusion of amendments in a highway bill that would extend ag tr ucking exemptions. .......................................4
WHeTHer you Spell iT syrup or sirup, it’s time to turn maple sap into the sweet stuff at the historic Funk Farm near Shirley, just as has happened for decades. .........5
Monday, March 19, 2012
Three sections Volume 40, No. 12
‘Deep loss’ farm program prospects dimming? BY MARTIN ROSS FarmWeek
Given current indications, Congress may prove reluctant to “go deep” in devising revenue protections in the 2012 farm bill. American Farm Bureau Federation (AFBF) President Bob Stallman testified last week at a Senate Ag Committee hearing that focused on the farm bill commodity title and producer risk management. He reiterated AFBF support for a strong crop insurance program and a new “deep loss” revenue program that would provide protection for disaster or near-disaster level farm losses. That prog ram proposes “flipping the g over nment’s role in ter ms of a safety net,” covering serious area-wide losses in any prog ram or federally in-
sured crop, Stallman said. According to Stallman, the deep loss proposal is aimed at reducing budget costs and addressing growing skepticism toward “annual income payments” such as direct or frequent countercyclical payments. AFBF’s plan emerged last fall as ag committees assembled a farm bill proposal for a congressional deficit “super committee.” AFBF since has awaited a Congressional Budget Office (CBO) “score” of the proposal’s projected long-term cost — a prerequisite to legislative consideration — and Stallman said AFBF was open to “discussions in some other areas” if CBO could not deliver “in time.” Several commodity groups have come out in favor of a “shallow loss” program, which would supplement crop insur-
ance with coverage of more minor losses. Further, AFBF’s plan has received a mixed reception even Bob Stallman within Farm Bureau. Though the deep loss concept was approved by AFBF delegates in January, Arkansas, Louisiana, and Mississippi Farm Bureaus since have officially dissented from the organization’s farm bill policy proposal. Illinois Farm Bureau never considered dissenting from AFBF policy, IFB National Legislative Director Adam Nielsen said. However, efforts since last summer’s final IFB Farm Policy Task Force report have focused on building support for
a farm bill that centers on crop insurance and includes an improved revenue-based safety net, he said. “After a year and a half of study and after taking into account the current budgetary situation, our leaders told us clearly and unequivocally what they wanted to see in the next farm bill,” Nielsen said. “We’ve been active in the farm bill debate since last August, when the farm bill was being written, and we will continue to be engaged until a new bill is written and passed.” Stallman conceded the deep loss concept is “somewhat revolutionary compared to the more evolutionary changes that normally occur in farm policy.” University of Illinois ag economist Nick Paulson agrees — and that may be the hitch. A shallow loss program would provide more “supple-
mental” protection with crop insurance as the “baseline program,” while a deep loss program likely would overlap with existing insurance coverage, Paulson said. He sees a broad producer “consensus” toward farm bill protection of crop insurance. “Politically, for better or worse, moving toward what people are calling a shallow loss program probably is likely to be more acceptable — something that will work with the programs we actually have,” he told FarmWeek. “I think the (deep loss program) is arguably a better idea, if we could start over from square one. “But given the fact that we have an established crop insurance program, it would be a lot tougher sale to have a (deep loss) program and then redesign crop insurance around that.”
Unseasonably warm weather could have some drawbacks BY DANIEL GRANT FarmWeek
Periodicals: Time Valued
Many Illinoisans welcomed the blast of unseasonably warm air last week as temperatures at many locations neared or exceeded 80 degrees. Jim Angel, climatologist with the Illinois State Water Survey
(ISWS), reported high tempera- perature by nearly 10 degrees However, Angel last week said week averaged between 61 and tures last week set new records 64 degrees in Southern Illinois, he was concerned the early heat last week. at numerous locations around wave could have some negative There were scattered reports 54 and 59 degrees in Central the state, including Champaign consequences down the road. Illinois, and 52 and 55 degrees of farmers around the state where the mercury the middle in Northern Illinois, according planting corn Friday. See Weather, page 6 of last week hit 80 degrees to ISWS. Topsoil temperatures at late compared to the normal high of 51. In Alton, the temperature reached an early-summer-like 85 degrees. “For the state in general, the average high in March usually is in the 60s in Southern Illinois, the low- to mid-50s in Central Illinois, and upper 40s in Northern Illinois,” Angel told FarmWeek. “That tells you how far off we are from normal for this time of year.” The warm trend was projected to continue as the National Weather Service outlook through the end of this month called for a much greater chance of above normal temperatures. Jake Lieb, Ivesdale, left, and his brother, Josh, of Hammond made last-minute adjustments to their equipment in The unseasonably warm an 80-acre field near Monticello last week before they began fieldwork for the year. They farm with their father, temperatures accelerated the Terry Lieb, president of the Piatt County Farm Bureau. The brothers were a little concerned about a lack of soil development of plants, includmoisture since there has been no water in their tiles since June of 2011. The Liebs also have 22 head of bison, ing winter wheat, grass, and which they raise to sell for meat. Their website is {liebfarms.com}. In some parts of Illinois, farmers last week were putting corn in the ground. (Photo by Ken Kashian) trees, and raised the soil temFarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, March 19, 2012
Quick Takes LIGHTSQUARED PETITION — In a filing with the Federal Communications Commission’s (FCC) International Bureau last week, American Farm Bureau Federation (AFBF) and others argued that “high-precision GPS (global positioning system) technology is vitally important to American agriculture, and would be gravely harmed by LightSquared’s plans.” The groups urged FCC “to adopt without delay” Farm Bureau proposals to withdraw a conditional waiver it recently granted LightSquared allowing it to develop a ground-based wholesale 4G wireless broadband communications network integrated with satellite coverage across the U.S. The FCC petition was also signed by the American Soybean Association, Association of Equipment Manufacturers, National Association of Wheat Growers, National Corn Growers Association, National Council of Farmer Cooperatives, and a variety of other grower groups. The petition cited an economic study which showed that GPS increased 2007-2010 crop yields by about $20 billion in value per year. “We remain strong supporters of expanded broadband access in rural America,” it stated. “However, expanded broadband access cannot come at the expense of degraded access to high-precision GPS for U.S. farmers.” ILLINOIS FARM FAMILIES, IHSA BASKETBALL — Fans of Illinois High School Association (IHSA) state basketball games saw more than dunks and rebounds when they tuned in to watch their favorite teams compete at state. Commercials promoting farming and Illinois Farm Families (IFF) were aired during the televised games. Country donated spots for the IFF commercials. The commercials feature Aledo farmer Matt DeBlock who tells how his children love growing up on a farm, and Mazon farmer Donna Jeschke who discusses the importance of producing safe food. The commercials were filmed last year by the Illinois Farm Bureau audio visual department. H A P P Y 1 S T A N N I V E R S A R Y FA R M D O C DAILY — The University of Illinois’ farmdoc daily, a website designed to focus on Corn Belt farm economics, has marked a unique milestone. The fledgling website, directed at the commercial agriculture sector, has published an original article of researchbased analysis and information every business day since it was launched on March 17, 2011. The goal was to complement the original farmdoc and to fit modern technology, according to Scott Irwin, farmdoc daily team leader. Farmdoc daily marries the “blog revolution” with the idea of a daily newspaper. “We wanted to use the blog format because it’s simple, and it presents information the way people are used to seeing it electronically now,” Irwin said. “But we didn’t want to do a blog in the conventional sense of an opinion journal. So we came up with an idea that was closer to a newspaper that published one article a day — an original piece of analysis directed at a farm-level audience.”
(ISSN0197-6680) Vol. 40 No. 12
March 19, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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AROUND IllINOIs
State appeals FEMA aid denial BY KAY SHIPMAN FarmWeek
Friday morning capped the latest action to obtain federal disaster aid for tornadodamaged counties in Southern Illinois. Gov. Pat Quinn appealed the Federal Emergency Management Agency’s (FEMA) denial of federal disaster assistance for five counties. It capped a roller coaster week for state and local officials who marshaled Illinois’ formidable congressional power to challenge FEMA’s decision. U.S. Sen. Dick Durbin, a Springfield Democrat, took his concerns directly to FEMA Administrator Craig Fugate. Durbin later reported the federal agency would allow the state to recalculate the amount of damage from the Feb. 29 storms that killed seven people in Harrisburg. The EF-4 tornado that hit Southern Illinois “was the biggest, meanest, most destructive tornado in our history,” Durbin said during a news conference. In addition to Durbin, Illinois’ efforts were aided by the staff of Sen. Mark Kirk,
a Highland Park Republican, and U.S. Reps. Jerry Costello (D-Belleville) and John Shimkus (R-Collinsville). The state’s appeal included additional information on damages to homes as well as socioeconomic information that will illustrate why recovery would be difficult, if not impossible, for many people without federal assistance, according to Quinn. On Thursday, personnel from the Illinois Emergency Management Agency (IEMA) and FEMA returned to Harrisburg and Ridgway to visit homes recently identified as being damaged by the tornadoes and to gather more damage information. The original assessment documented that 104 homes in Gallatin, Randolph, Saline, Union, and Williamson counties had been destroyed, 50 homes had major damage, and 272 others also were damaged. State officials were notified March 10 that FEMA had denied the request. If the state’s appeal is approved, a federal disaster declaration would make assistance available to those affected by the tornadoes and storms.
Corn referendum vote March 28 at Extension offices University of Illinois Extension offices will serve as polling locations for the Illinois Corn Marketing Act referendum March 28. Illinois producers actively engaged in the production and marketing of corn are eligible to cast ballots in the referendum, which seeks to increase the voluntary corn checkoff rate by a quarter-cent per bushel. Voting will take place during normal business hours. A complete list of polling locations is
available online at {http://web.extension.illinois.edu/state/}. Click on “Find an Office” on the left side of the homepage. The referendum was scheduled by the Illinois Department of Agriculture (IDOA) at the request of the Illinois Corn Marketing Board. A favorable vote would result in increasing the voluntary corn checkoff rate from 3/8 of a cent per bushel to 5/8 of a cent. Corn farmers still would
DATEBOOK March 22 On-the-Road seminar, 6 p.m., Cass-Morgan Farm Bureau, Jacksonville. March 27 Meet the buyer meeting, 8:30 a.m., Champaign County Farm Bureau, Champaign. March 22 registration deadline. Call 217-352-5235. March 28
Agriculture Legislative Day, State Capitol, Springfield. March 29 East-Central Illinois Regional Water Conference, 8 a.m., Holiday Inn, Urbana. Call 217-493-7407. On-the-Road seminar, 9:30 a.m., University of Illinois Extension office, Hardin. On-the-Road seminar, 7 p.m., Livingston County Farm Bureau, Pontiac. April 4 Meet the buyer meeting, 8:30 a.m., John Logan Community College, Carterville. March 30 registration deadline. Call 618-993-2609. May 12 IAA Foundation 5K Grow and Go, Illinois Farm Bureau headquarters, Bloomington.
have the right to a full refund. Eligible voters who cannot be at the polls on March 28 may cast an absentee ballot. Absentee ballots must be requested in writing from IDOA and are due no later than this Friday, March 23. Requests for absentee ballots should be sent to: Director, Illinois Department of Agriculture, Attn: Bureau of Marketing and Promotion, State Fairgrounds, P.O. Box 19281, Springfield, IL 62794-9281.
Regional water conference set New information about the Mahomet Aquifer and implications for water supply planning in East-Central Illinois will be presented March 29 from 8 a.m. to 3:30 p.m. at a regional water stakeholders’ conference. The event will be in the Holiday Inn, Urbana. The registration fee is $30 for adults and $20 for students. The fee includes lunch and refreshments. Checks should be made payable to Mahomet Aquifer Consortium. Registration information along with the fee should be mailed to: Earth Partners, Robbie Berg, 801 N. Country Fair Drive, Champaign, Ill. 61821. For more information, contact Berg at earthpartners@hotmail.com or call 217-493-7407. Conference information is available online at {www. mahometaquiferconsortium.org}.
Page 3 Monday, March 19, 2012 FarmWeek
CONSUMER OUTREACH
Hogs, humor highlight ‘field moms’ farm tour
BY KAY SHIPMAN FarmWeek
I
n-depth questions and answers about sow behavior and care were punctuated by laughter when six non-farm mothers toured the Eldon and Chris Gould farm near Maple Park in Kane County. The “field moms” participated in a tour earlier this month that focused on swine and was sponsored by Illinois
Farm Families (IFF). The Gould families have a 750sow breed-to-wean operation. IFF is a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau. The visitors watched a sow give birth and cuddled baby pigs. They gasped at the size of a huge boar and peppered Eldon and Sandy Gould and their children, Chris and Lynda, the latter a veterinarian, with questions. “We treat each sow as an individual and give them all the TLC (tender loving care) so they are the most pampered pigs you can imagine,” Eldon Gould told the moms. Chris Gould added: “We have no incentive to mistreat our animals. We have every incentive to take care of them as well as we can. That’s when they produce the best.” Some questions were fielded by Janeen Salak-Johnson, a University of Illinois animal science professor who
specializes in animal behavior and care. During a discussion of hierarchy within a group of hogs, Salak-Johnson explained sows may choose not to interact with their pen neighbors “like a woman who may not like the woman on the left.” Her response and other light-hearted banter illustrated the field moms felt comfortable asking a variety of questions, including some about gestation stalls. After the tour, Betsie Estes, a field mom from Elk Grove Village, told FarmWeek she was impressed by the animals’ cleanliness. “From what we saw, the sows are comfortable,” added Farrah Brown, a field mom from Glendale Heights. “I don’t see it as being inhumane. They are comfortable and well cared for ... I don’t see the big deal.” “I was surprised by the TLC and how they treat each animal as an individual even though there were so many,” said Pilar Clark, a field mom from Lisle. “It makes the best sense
FarmWeekNow.com Check out our latest photo gallery and the IFF website at FarmWeekNow.com.
for you guys to take care of your animals the best you can,” Jenn Weis, a field mom from Big Rock, told the Goulds. Weis acknowledged she hadn’t thought previously about what is involved with raising hogs or their needs. “That’s why it’s so powerful for us to come here and to learn and know,” she continued. “I’ll be out there and say, ‘I know the facts.’”
Above: Kane County farmer Chris Gould holds a newborn pig wrapped in a towel as Illinois Farm Families “field moms” snap photos during their March 10 tour of the Maple Park hog operation. The women watched as the sow gave birth and recorded
Janeen Salak-Johnson, right, an animal science professor at the University of Illinois, answers a question about swine housing from Pilar Clark, an Illinois Farm Families “field mom” from Lisle, during a tour of the Eldon and
the event. Upper left: Illinois Farm Families “field moms” Farrah Brown, left, of Glendale Heights, and Jenn Weis of Big Rock reassure a baby pig during a tour of the Eldon and Chris Gould farm near Maple Park in Kane County. (Photos by Ken Kashian)
Chris Gould farm near Maple Park in Kane County. (Photo by Ken Kashian) To view additional photos online, visit “Ken Kashian’s Photo Gallery” located under the Electronic Media & Publications tab at {www.ilfb.org}.
U of I scientist helps moms understand hog care A nearby sow chewing on a metal bar wasn’t bored, but was doing something that came naturally, Janeen Salak-Johnson explained last week to Pilar Clark as the two women strolled between pens on Eldon Gould’s hog farm near Maple Park. The hog buildings became an impromptu classroom for Salak-Johnson, a University of Illinois scientist who specializes in animal behavior and well being, during a tour by Clark and her fellow Illinois Farm Families (IFF) field moms. The field moms are urban mothers who have questions about food, farmers, and farming. “I’ve been really impressed. They’re (the field moms) asking questions, and the right questions. I’m a big advocate that they are your target audience,” Salak-Johnson said after she and six field moms toured a couple of hog buildings. During her noon presentation, Salak-Johnson, a national expert in swine housing and well being, gave the women a crash course on Euro-
pean Union rules that require group swine housing, despite no scientific evidence proving animal health would improve in group pens. She continued that human perceptions and emotions are being applied to U.S. hog housing systems, and her goal is to improve animals’ well being. “It (gestation stalls) can be improved, but we have to base it on science,” Salak-Johnson said. The researcher’s comments made an impact on some of the field moms. Before Salak-Johnson spoke, a couple of the moms told FarmWeek they had been bothered by the amount of space in a gestation stall and the sows’ inability to turn. After listening to Salak-Johnson, the same women acknowledged they had applied their own perceptions to what sows would want. “It seems like they are a more delicate animal and that they have very specific needs,” Clark said. “The (animal) activists forget these are domesticated animals, and they depend on us.” — Kay Shipman
FarmWeek Page 4 Monday, March 19, 2012
GOVERNMENT Ag trucking exemptions clear Senate
Federal lawmakers reject highway bill energy amendments
BY MARTIN ROSS FarmWeek
Faced with an administration call for an “all-of-the-above” domestic energy strategy, the Senate last week opted essentially for none of the above. Biodiesel interests blasted Senate rejection of separate proposals by Senate Ag Committee Chairman Deb Stabenow (D-Mich.) and Sen. Pat Roberts (R-Kan.) to extend an expired $1-per-gallon biodiesel tax credit as part of the Senate highway bill. Nearly 90 lawmakers combined voted along party lines for one of the two amendments, but neither Stabenow’s renewables-focused measure nor Roberts’ otherwise fossil fuel-oriented proposal could muster the 60 votes needed for inclusion in the highway bill. The failed Stabenow amendment also would have extended wind energy incentives. Senators nixed proposals for Alaskan oil drilling, construction of a proposed Canada-toTexas Keystone oil pipeline, and support for natural gas vehicles. “I think they wanted to keep
the bill tied to transportation,” American Farm Bureau Federation (AFBF) policy specialist Andrew Walmsley told FarmWeek. AFBF hailed inclusion of amendments that would extend ag trucking exemptions. Sens. Amy Klobuchar (D-Minn.) and Roberts proposal to exempt farm, co-op, or agribusinesses
drivers from “time card-type” hours-of-service requirements when they move goods or farm supplies within 100 air-miles. A second bipartisan amendment would exempt farm vehicle drivers from obtaining a commercial driver’s license and from regulations aimed at the long-haul trucking industry. The House now must take
up the highway bill debate. House Transportation Chairman John Mica (R-Fla.) favors a longer five-year bill and has spearheaded a marriage of energy and transportation proposals — Walmsley noted Mica’s indication that he “wants to leave his touch” on Senate proposals. Renewable energy interests
Durbin: Senate bill best House option In the opinion of Springfield Democrat U.S. Sen. Dick Durbin, the Senate has completed the long-awaited new federal highway bill — if the House will sign off on it. House Speaker John Boehner (R-Ohio) has effectively “removed” House Transportation and Infrastructure Chairman John Mica (ROhio) from the highway bill process following recent failure of two “politically controversial” variations of Mica’s hybrid energy-transportation plan, Durbin told FarmWeek last week. “They couldn’t pass the House, let alone the Senate,” the Senate majority whip argued. “The best thing the House can do is pick up the bill the Senate just passed. “The overwhelming (Senate) vote in favor of this bill (74-22) tells you we have a good bipartisan effort here. If they bring that to the floor of the House, I think they have a good chance of passing it.”
In addition to Farm Bureau’s support for the bill’s ag trucking provisions (see accompanying story), American Trucking Associations CEO Bill Graves praised the package’s proposed $2 billion a year in funding for highway freight-specific projects, measures aimed at speeding project approvals, and avoidance of “the tempting but ill-advised use of tolls on existing interstates.” Further, individual states would be given greater discretion in how and where they spend federal highway funds. However, key differences remain between Senate and House proposals. The Senate passed a two-year, $109 billion transportation package that includes mass transit spending, well below the funding level proposed under a five-year House Republican plan that omits transit projects. — Martin Ross
blasted Senate actions. American Wind Energy Association CEO Denise Bode argued “tens of thousands of American jobs are being put in peril by partisan gridlock in Washington.” National Biodiesel Board (NBB) Vice President Anne Steckel sees “the very real possibility that biodiesel plants will go out of business.” Walmsley stressed the importance of U.S. energy security, through petroleum and renewables development. But he noted Democrat resistance to new drilling and a vocal conservative “anti-green energy bandwagon.” NBB spokesman Ben Evans nonetheless argues bipartisan biodiesel credit support “sends a really strong message” to lawmakers amid public frustration over “oil price spikes.” “There’s really no reason why something like this should get caught up in these larger partisan issues,” Evans told FarmWeek. “We’re going to keep asking Congress to find a way to pass it, whether in this (highway) bill or in something else that comes along.”
Tractor firms strive to meet emission rules without sacrificing horsepower BY DANIEL GRANT FarmWeek
Two of the top manufacturers of tractors and combines, John Deere and Case IH, this month at the Commodity Classic in Nashville assured farmers new engine technology will meet emission regulations without sacrificing horsepower. In fact, in many cases farmers can expect more horsepower and improved fuel efficiency in new model machines. “We’re taking a right technology, right now approach,” said Geoff Stigler, manager of worldwide marketing support for John Deere Power Systems. “We can deliver on emission standards plus the performance our customers expect.” John Deere is using an Integrated
Emissions Control (IEC) system to meet new emissions standards. The system features a diesel oxidation catalyst, a diesel particulate filter, and a selective catalytic reduction system. There currently are about 20,000 John Deere engines in the field that meet Tier 4 emissions regulations. The engines have accumulated roughly 2 million hours of use. “The performance of those engines has been very good,” Stigler said. “They’re even better than the engines they replaced (in terms of durability and reliability) and the fuel economy proved to be excellent.” Case IH uses selective catalytic reduction engines to meet Tier 4 requirements. At the Commodity Classic, it pro-
moted its new 30 series combines and Magnum tractors with increased horsepower. The 30 series combines “have increased horsepower and about 10 percent better fuel savings,” said Cy Werda, Case IH marketing manager. The new combines also feature high-capacity unloading systems to improve harvest efficiency. Final Tier 4 emissions regulations for off-highway diesel engines began this year for engines with 50 to 74 horsepower. Regulatory dates for engines with 25 to 49 horsepower and all engines 75 horsepower and larger will be implemented in stages from 2013 through 2015. The regulations and increased engine modifications are expected to
increase the price of farm machinery. In other machinery news, Calmer Corn Heads of Alpha promoted its new BT Super Chopper, which is a 10blade knife roll that can be installed on all John Deere corn heads and some Case IH and New Holland heads. The Super Chopper is designed to reduce the size of crop residue so it can more easily be turned into organic matter. “The name of the game is to get residue broken down so it can be used for future crop production,” said Allen Berry, a crop specialist with Calmer Corn Heads and a farmer from Western Illinois. The new Super Chopper does not require any additional horsepower, Berry added.
Futures industry seeks to protect its customers’ funds Joe Vaclavik, a former commodities broker with MF Global, said he wasn’t too worried about his ability to find a job after the firm filed for bankruptcy on Oct. 31. His biggest concern since the meltdown is making sure such violations don’t occur again in the futures industry and assuring customers that their money is safe. “Firms have gone bankrupt in the past, but we never had customers lose money (in segregated fund accounts),” Vaclavik, who now works for Straits Financial in Chicago, said at the recent WILL AM
580 ag outlook meeting in Covington, Ind. “I always told customers their money is safe, it’s in segregated funds,” he continued. “But on Oct. 31, everything changed.” Vaclavik said he was unaware MF Global transferred customer segregated funds and was caught off guard by the firm’s ultimate collapse. MF Global prior to its bankruptcy held about $6.9 billion in customer funds. About $1.6 billion of those funds was missing after the bankruptcy.
As of March 6, about 72 percent of balances had been returned to customers, according to Fred Seamon, associate director of commodity research and product development at CME Group. But many in the industry doubt whether all of the missing funds ever will be returned to the rightful owners. A federal investigation is ongoing. “MF Global’s transfer of customer segregated funds was a serious violation of our rules (at CME Group) and the Commodity Exchange Act,” Seamon said. CME Group established a
$550 million financial guarantee to trustees to expedite the process of returning funds to former MF Global customers. CME Group also is in the process of returning warehouse receipts to customers, Seamon reported. CME Group, in an effort to provide future assurances, established a $100 million farmer protection fund to protect customer’s funds. “We need to focus on solutions to protect customer segregated funds at the firm level,” Seamon said. Stephen Platt, a broker with Archer Financial Servic-
es in Chicago, believes the industry should be regulated more tightly to avoid future violations. “(The MF Global bankruptcy) shook the whole industry in terms of customer confidence,” he said. “We need to be vigilant. People shouldn’t be reluctant to put in more regulations.” The MF Global bankruptcy is creating additional problems for customers this tax season. Many farmers who did business with MF Global are waiting for 1099 forms in order to file their taxes. — Daniel Grant
Page 5 Monday, March 19, 2012 FarmWeek
production
End of winter triggers beginning of syrup season BY DANIEL GRANT FarmWeek
Snowfall was scarce in McLean County this winter, but conditions triggered a generous flow of sap from nearly 3,500 maple trees on the historic Funk Farm in Shirley. Members of the Funk family for nearly a century have collected sap every winter/spring and converted it into the tasty topping for everything from flapjacks to waffles. Hazel Funk Holmes started the operation in the 1920s. Mike and Debby Funk, and their nephew currently run the operation after taking over for Mike’s parents, Stephen and Glaida Funk, who ran the syrup business from 1947 to 1989. “It’s always been a familytype thing,” Mike told FarmWeek. The Funks this year collected sap from about mid-February through the first week of this month. The flow of maple sap is triggered by a freezethaw cycle that occurs during the transition between seasons.
B.J. Farmer, back left, Joe Caslow, front left, and Jacob Walker empty maple sap into a transport container on the Funk Farm in Shirley. Maple sap consists of about 2.5 percent sugar. It takes about 40 gallons of sap to make one gallon of syrup.
“Our success or failure depends on the weather,” Funk said. “The weather at the end of winter, with temperatures in the 20s at night and the 40s during the day, are a perfect scenario for sap to flow.” The Funks use about 4,000 buckets to collect the sap. It then is boiled and converted into Funks Grove Pure Maple
Sirup. “Sirup” is the family’s preferred spelling of the product. Collection of the sap requires quite a bit of hand labor, but the Funks have been able to simplify the process over the years by implementing a pipeline system and pumps that mechanically does some of the work. The Funks also have refined
the boiling process by using reverse osmosis that removes some of the water from the
sap, which saves time and energy required to make the syrup. “Our syrup operation is just like you’d see in the northeast or Canada,” Funk said. Maple sap is 2.5 percent sugar. So it takes about 40 gallons of sap to make one gallon of syrup, Funk noted. The sap is boiled to about 219 degrees, or about 7 degrees hotter than the point water boils, to achieve the perfect consistency for the syrup, according to Funk. This year’s harvest should provide enough syrup for the Funks to sell until about August. “We do some mail-orders, but primarily we retail everything from our farm,” Funk added. More information is at the website {www.funkspuremaplesirup.com}.
Levi Kirby of McLean, right, changes the filters on a machine used to collect maple sap and convert it to syrup. Mike Funk, who runs the operation with his wife, Debby, assists Kirby at the Funk Farm in Shirley.
Above: Mike Funk, who operates the Funks Grove Pure Maple “Sirup” Farm with his wife, Debby, in McLean County, describes the process of boiling maple sap into syrup to children from the Oasis Home School Network of Peoria during a farm tour. The Funk family has been producing “sirup” on the farm since the 1920s. Below: Funk adjusts a sap collection pipeline that pumps sap from many of the 3,500 maple trees on the farm. The pipeline was implemented to reduce labor, although the Funks still collect much of the sap in buckets and dump it by hand. (Photos by Cyndi Cook)
FarmWeek Page 6 Monday, March 19, 2012
Weather
Spring forecast favorable for planting in Midwest Farmers in a large portion of the Midwest this year won’t have to battle widespread spring floods to plant their crops if a recent forecast is correct. The National Oceanic and Atmospheric Administration
FarmWeekNow.com View an Allendale video on the latest planted acreage forecasts at FarmWeekNow.com.
(NOAA) last week projected a low risk of flooding this spring in the central U.S. The forecast, however, was not as favorable in Southeastern Illinois, southern Indiana, and northern Kentucky, where there is an increased risk of flooding this spring. “We’re not forecasting a repeat of recent historic and prolonged flooding in the central and northern U.S., and that is a relief,” said Laura Furgione, deputy director of NOAA’s National Weather Service. “The severity of any flooding this year will be driven by rainfall more so than the melting of the current snowpack.” The forecast is favorable for farmers in many areas to increase their plantings of corn. U.S. farmers last year planted 91.1 million acres of corn,
but USDA last month projected farmers this spring will plant 94 million acres of corn. Last week, Allendale Inc. estimated farmers will plant 95.01 million acres of corn, which would be the most since 1944, based on its 23rd annual producer survey. Allendale projected soybean plantings will slip from 74.9 million acres last year to 74.5 million acres this spring. USDA last month projected farmers this year will plant 75 million acres of beans. A reduced chance of spring floods also is favorable for
Insurance plant dates potentially crucial During a mild spring, far mers’ thoughts often turn to early planting. But planting too early can prove a costly move for Illinois growers. Because of early spring weather risks, no producer replanting payments will be made on acreage initially planted prior to USDA’s earliest crop insurance planting date. That’s April 6 for corn in most of Illinois and April 21 for soybeans planted in the southern two-thirds of Illinois. development of the winter wheat crop. “In the soft red wheat states (including Illinois) that report monthly conditions,
Exceptions include Alexander, Hardin, Johnson, Massac, Union, Pope, Pulaski counties, where producers “totally void” replant coverage if they plant corn prior to April 1, Illinois Far m Bureau risk management specialist Doug Yoder warned. Plus, roughly two dozen Northern Illinois counties have an April 16 initial soybean planting date. For specific county dates, contact a crop insurance agent.
wheat is in substantially better shape than a year ago at this time,” USDA noted last week. In Illinois, 81 percent of the wheat crop was rated good
to excellent at the end of February compared to last year when just 36 percent of the crop was rated good to excellent at that time.
U.S. ag exports to Vietnam on upward trajectory BY DANIEL GRANT FarmWeek
It seems Asian markets that typically garner the most attention from U.S. ag exporters are China, Japan, and South Korea. And for good reason. Japan traditionally is one of the largest buyers of U.S. grains and meat, China last year was the largest foreign buyer of all U.S. ag products, and sales to South Korea are expected to explode with the implementation of a new free trade agreement there. But one country with a growing population and economy, which sometimes is overlooked as a blossoming trade
partner, is Vietnam. U.S. ag export leaders this month at the Commodity Classic in Nashville projected large gains in sales of U.S. ag products to the Asian nation situated between Laos, Cambodia, China, and the South China Sea. “There are huge opportunities for U.S. feed products (in Vietnam),” said Tom Dorr, president and CEO of the U.S. Grains Council. Vietnam is the eighth largest market for U.S. feedstuffs and the fourth largest market for U.S. distillers grains, Dorr reported. Corn use driven by feed demand is growing in Vietnam at an annual clip of about 30
percent. And most of the increasing demand for corn likely will be satisfied by outside markets, including the U.S. “Domestic production of coarse grain (in Vietnam) continues to fall short of consumption, which is being driven by an increase in meat consumption,” Dorr said. Since 2005, beef consumption in Vietnam has grown 108 percent and pork consumption has increased 17.3 percent, according to Mark Jagels, vice chairman of the U.S. Meat Export Federation. “The No. 1 market is the growing middle class,” Jagels said. “Vietnam is one of the fastest-growing food service markets in the world.” And that market likely will continue to rely more on exports to feed its population of
about 90 million people. Foot and mouth disease recently affected about 150,000 cattle in Vietnam while a lack of land resources there limits opportunities to expand crop production. Vietnam also has the thirdlargest aquaculture industry in the world and will need to import more soybeans and soy meal for feed, according to Roy Bardole, chairman of the U.S. Soy Export Council. “Aquaculture has phenomenal potential worldwide,” Bardole said. “The wild catch is going down while demand is is increasing. The only way we’ll have enough fish to eat is through aquaculture.” The annual growth rate of Vietnam’s aquaculture industry averaged 16.4 percent from 1990 to 2008.
CRP signup ends April 6 Farmers and landowners interested in enrolling land in the Conservation Reserve Program (CRP) have a little less than three weeks to do so for the current signup period. The Farm Service Agency’s (FSA) current CRP general signup period opened March 12 and ends April 6. To submit CRP offers, producers must visit their local FSA office. FSA will accept offers only during the signup period.
Weather Continued from page 1 The last time temperatures were this warm this soon, 2007, Angel noted numerous crops developed early and were damaged or destroyed by the infamous Easter freeze on April 8 of that year. Easter is on the same date this year. “That was a billion dollar disaster (that damaged fruit crops, first-cut alfalfa, and wheat across numerous states),” Angel said. “If you look at the apple and peach industries, there could be significant losses with this type of set-up.” Farmers who are considering planting also should bear in mind no crop insurance payments for replanting will be issued for fields that are planted prior to the earliest planting date — April 6 for corn and April 21 for beans — according to the Risk Management Agency. (See story above) Angel noted the average date of the last frost is around the first week of April in Southern Illinois, mid-April in Central Illinois, and late-April in Northern Illinois. “We’ve still got several weeks to go before we’re out of the woods,” he added. “Beyond the (favorable) 14-day forecast, we could have something sneak in and change the picture in a hurry.”
Page 7 Monday, March 19, 2012 FarmWeek
ethanol
Ethanol industry expanding its global reach BY MARTIN ROSS FarmWeek
The U.S. ethanol industry is ringing up sales across the globe, from the heart of Middle East oil country to Brazilian sugar cane territory. National Renewable Fuels Association (RFA) CEO Bob Dinneen deems exports “a critically important market for our industry and, probably, key to our profitability.” Ethanol exports reached 76.3 million gallons in January, up 33 percent from a year earlier and the highest ever for the month. Major buyers included Brazil, at 26.4 million gallons; Canada, at 23.4 million gallons; and The Netherlands, at 4.9 million gallons. Exports of distillers dried grains (DDGs) reached 606,643 metric tons in January, up 7 percent from the previous month and the highest level since September. Brazil, which had been the U.S.’ major ethanol competi-
tor in international markets, has become a key U.S. customer with a recent lag in sugar cane production and a lack of new investment in sugar-based biofuels processing. European demand also has been growing, largely as a result of the shortfall in Brazilian supplies and despite a European Union (EU) trade complaint focusing on U.S. ethanol subsidies. RFA and its member companies have their eyes set next on Asia, where rising populations and middleclass growth are expected to stoke energy demand in all forms. “The world’s looking for lower-cost liquid transportation fuels,” Dinneen told FarmWeek. “Ethanol today
E15 ‘getting really close’? E15 has cleared key regulatory hurdles. But prospective E15 marketers acknowledge they must win over consumers before they can knock down the ethanol “blend wall.” Illinois Corn Growers Association Technology and Business Development Director Dave Loos suggested “we’re getting really close” to a retail rollout for 15 percent ethanol blends. The industry is rapidly approaching domestic market saturation with standard E10 gasoline. The U.S. Environmental Protection Agency (EPA) now is allowing fuel marketers to register the blend for sale, and was expected last week to begin responding to applicants. While formal registrations may be held until details of an industry E15 “misfueling” prevention-mitigation plan are in place, marketers notified by EPA “can start figuring out how (E15) can work for their particular business,” Loos said. Chronister Oil Co. chief Grady Chronister is cautious in his approach to unveiling E15 at his company’s Central Illinois Qik-n-EZ food marts, arguing consumers “first and foremost” must recognize that “this is a quality product.” He noted there is a difference between offering E85 for the limited “flex-fuel” vehicle fleet and marketing E15, which EPA has approved for model year 2001 and later vehicles. “There are benefits to the consumer to buy E15, for 65 percent of the population out there,” Chronister said. “But this has to be a convenient purchase for that consumer. It needs to be as available as our other main grades of fuel.” He sees likely public support for E15 not only among producer and biofuels groups but also from “clean air” groups such as the American Lung Association, because of its higher octane (fuel oxygen) level. Chronister stresses the need to offer E15 at each of the 16 fueling “sites” at each of his outlets, and is eyeing near-term options such as replacing existing mid- or premium-grade gas with the new blend. Kansas-based Zarco 66 already has “pulled” premium blends in favor of blender pumps that dispense a variety of ethanol fuels. Chronister sees potential for blender pumps at new stations. But currently, his ethanol fuels are “splash-blended” — delivered in specific formulations, likely meaning higher E15 transportation costs. In Zarco 66 President Scott Zaremba’s view, consumer education is “on the forefront” of E15 adoption, and today is ethanol’s educable moment, as standard gas prices continue to rise relative to the cost of advanced ethanol blends. “We can educate the public when it’s paying attention,” he argued. — Martin Ross
is $1 less than gasoline in the U.S. We’re the lowest-cost liquid transportation fuel on the planet. Without a doubt, new markets are going to open up. “When the United Arab Emirates is the fifth largest (ethanol) export market for the United States, I think that speaks volumes. If the Middle East is reaching out for our product, I think you’re going to see market opportunities open up in all corners of the world.” Hennepin-based Marquis Energy exported perhaps 8090 percent of its 2011 production to Europe, Brazil, and some African and Asian markets. It’s exported a growing volume of DDGs to Europe, Africa, and Asia, in bulk and by container. Marketing Director Tom Marquis noted “things have
changed a little bit” for the export picture. Domestic and global customers stocked up on supplies prior to January to take advantage of the U.S.’ now-expired fuel blenders’ Volumetric Ethanol Excise Tax Credit (VEETC), and he noted the U.S.’ major “driving season” is at least two months away. Thus, “demand’s probably at its low of the year right now,” Marquis said. A third quarter rally is likely, depending on Brazil’s 2012 sugar harvest and its will to re-enter the global market, he said. The loss of VEETC should not damage U.S. costcompetitiveness abroad, he said. The strength of the U.S. dollar vs. the Brazilian real is a more significant factor: Marquis noted a strengthening of the dollar last week, “which does hurt our ability to export a little bit.” Another concern is the EU’s two-pronged “investigation” alleging U.S. companies have “dumped” low-priced ethanol into Europe aided by
federal and state incentives. ePURE, Europe’s association of renewable ethanol producers, claims a 500 percent rise in U.S. ethanol imports between 2008 and 2010. Marquis is not unduly concerned by the EU anti-dumping probe –- he told FarmWeek “we wouldn’t be selling to the export market if we were getting a lower price and were trying to ‘dump’ that product onto the market.” RFA’s Dinneen called the EU’s overall complaint a “straw house,” arguing its case effectively vanished in January with elimination of VEETC and an accompanying tariff on foreign ethanol imports. “Trade law certainly is very clear on this point: If the offending incentive is no longer around, then the trade case is moot,” Dinneen said. “I think that’s what’s going to happen in this case.”
FarmWeek Page 8 Monday, March 19, 2012
AROUND ILLINOIS
ExplorACES connects students More than 2,000 students, teachers, and parents toured the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES) during the ExplorACES event March 9-10. A student steering committee planned and organized the event for prospective and incoming students. Students toured college facilities, watched and participated in activities, and spoke with faculty and current students. Above: U of I agriculture research specialist Pam Utterback shows a Plymouth Rock Columbian hen to a group of fourth-graders who
visited the stock pavilion. Up per l eft: Kimmy Schwar tz, a junior at Rantoul Township High School, colors a landscape design at one of the more than 125 exhibits that showcased academics, research, and student activities. Lower left: Rebecca Ries, right, of Waterloo precipitates butter from cream with help from her mother, Tammy, as part of a lesson about milk in the animal sciences laboratory. Ries will study animal sciences next fall at the U of I. (Photos by David Riecks and Joyce SeayKnoblauch, University of Illinois)
Researchers link bee deaths to seed insecticide exposure BY KAY SHIPMAN FarmWeek
U.S. and European scientists have identified exposure to corn and soybean insecticide coating as a contributing factor in honeybee deaths from colony collapse disorder (CCD). However, Kevin Black, a GROWMARK Inc. specialist, suggested CCD may be the result of multiple factors, and the insecticide seed coatings may be one part. The neonicotinoids insecticides are used both as seed treatments and as foliar sprays. The primary products used as seed treatments are Poncho, Cruiser, and Gaucho. Purdue University scientists Christian Krupke, an entomologist, and Greg Hunt, a behavioral geneticist, analyzed bees from several Indiana apiaries and found the presence of the insecticides. Their research showed high concentrations of the insecticides were present in waste talc that is exhausted from machinery during planting. The sticky coatings are mixed with talc to keep seed flowing during planting.
Excess talc used in the process is released during planting and routine planter cleaning. Hunt said no single factor is to blame, but scientists believe a combination of factors, including mites and insecticides, are involved. In Europe, Italian scientist Andrea Tapparo and colleagues recently published research that showed widespread use of neonicotinoid insecticides occurred about the time beekeepers observed large numbers of honeybee deaths. They speculated the deaths may be due to airborne particles of the insecticides that are expelled during planting. The main symptom of CCD is no or a low number of adult honeybees present with a live queen; however, no dead honeybees are found in the hive. Black, an insect and plant disease technical manager, said farmers should be aware of the situation and may even help find an answer. Noting farmers’ ingenuity in improving equipment, Black said farmers “have an opportunity to be part of the solution.” He challenged farmers to develop a good system to filter the talc particles that are leaving the planter.
Page 9 Monday, March 19, 2012 FarmWeek
from the counties
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OOK — Farm Bureau has printed “business cards” for members that outline basic information about farmer-related transportation issues. The cards are free to members and are designed to serve as a quick reference guide during traffic stops and other situations. Call 708-3543276 for a copy. • Send in your favorite fresh fruit and vegetable recipes to be published in this year’s recipe collection. Commodity Team members will choose 15-20 different recipes. Send submissions to Cook County Farm Bureau, Attn: Recipes, 6438 Joliet Road, Countryside 60525. • The Illinois Agricultural Auditing Association again will be providing income tax return services for members. Call the Cook County Farm Bureau office at 708-3543276 to set up an appointment. • Farm Bureau is sponsoring a workshop on financial/legal tools. “Your Personal Financial Plan, Preparing Wills and Trusts and Transferring Non-titled Property” will be held from 7-9 p.m. Wednesday, April 18 at Chicago Loop Country Financial, 55 West Monroe Street, Suite 3150, Chicago. The workshop is free to members and will feature speakers on wills, trusts, personal financial plans, and transferring non-titled property. Call 708-354-3276 to register. Deadline for registration is April 6. • Farm Bureau will hold a “High 5 Illinois” Ag Day event Thursday at the Chicago High School for Ag Sciences. More than 400 third grade students are signed up to attend the fifth annual event in which they will rotate through eight stations in two hours to learn about Illinois agriculture. Stations will include pork, corn, soybeans, dairy/beef, animals, farm stands, and two stations on horticulture. Teachers will be given lesson plan booklets with activities to take back to their classrooms. Children will receive a bag of items including dairy coloring books, and soybean crayons. An additional two-day Ag Day event will take place on April 19 and 20 at Wagner Farm in Glenview. ORD-IROQUOIS — Applications for the Ford-Iroquois Farm Bureau Foundation scholarships are available at the Farm Bureau office, from guidance counselors, and from FFA advisers. Dead-
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line to return applications is April 2. RUNDY — Grundy and Kendall County Farm Bureaus will sponsor a Master Grain Agreement program at 10 a.m. Wednesday, March 28, at the Farm Bureau office, Morris. Jerry Quick, former Illinois Farm Bureau legal counsel, will be the speaker. Call the Farm Bureau office at 815-9426400 for reservations or more information. ASALLE –- Farm Bureau has discounted the price of the SMV decals to $2. • Check out the March 5 issue of Agrisource for special discounts from local businesses in honor of National Agriculture Week. • Farm Bureau will have an agriculture display this week in the center court of the Peru Mall. EE — District 4 Young Leaders from Bureau, LaSalle, and Lee County Farm Bureaus will have a pizza and bowling party Thursday, March 29. Pizza will be at 6:30 p.m. at Mama Ciminos, with bowling to follow at Plum Hollow Family Center, Dixon. Call the Farm Bureau office at 815-857-3531 or e-mail leecfb@comcast.net for reservations or more information. CLEAN –- Farm Bureau is teaming up with Cub Foods for a meat donation drive through Saturday. Customers may purchase donation coupons at the store’s checkout. All donations will go to benefit the Midwest Food Bank. Farm Bureau will match all donations up to a total of $500. ONROE — The AgriScience Expo open house and awards presentation will be from 10:30 a.m. to noon Saturday, March 31, at the Monroe County Annex. Seventh grade students will conduct their own AgriScience investigation as part of the AgriScience Roadshow, which is funded by Monsanto’s “America’s Farmers Grow Communities” program. Call the Farm Bureau office for more information. ONTGOMERY — The Prime Timers will sponsor a bus trip Wednesday, April 18, to Highland. The group will tour the Louis Latzer homestead and the Pet Milk museum. Lunch will be at the Farmer’s Restaurant. Following lunch, members will visit the Palace Theatre for musical entertainment. Cost is $43. Call the Farm Bureau
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office at 217-532-6171 by Friday, April 13, for reservations or more information. EORIA — A defensive driving course will be from 9:30 a.m. to 2:30 p.m. Wednesday and Thursday at the Farm Bureau office. Cost is $10, which includes materials and lunch. Call the Farm Bureau office for more information. • A “Farmers’ Marketing — Rise of the Peoria Locavore” session will be from 6:30 to 8 p.m. Tuesday, March 27, at the Farm Bureau office. Deborah Cavanaugh-Grant, University of Illinois extension, will discuss “The Art and Science of a Farmers’ Market Display” and ElevatePR will discuss social media fundamentals. Call the Farm Bureau office for more information. CHUYLER — Farm Bureau and the Schuyler County Ag Day Committee will sponsor a free Ag Day breakfast from 6 to 8 a.m. Friday at the Rushville Phoenix Opera House. Awards will be presented for Young Farm Family, Master Farm Family, and
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Patron to Agriculture. High school essay winners will read their essays during the award presentation. Sarah D. Culbertson Memorial Hospital will conduct blood lipid tests. TARK — Farm Bureau will sponsor an informational meeting at 6 p.m. Thursday, March 29, at the Farm Bureau office for the Jan. 22 through Feb. 7 trip to Australia and New Zealand. The trip also is open to non-Farm Bureau members. Call the Farm Bureau office at 309-2867481 for more information. TEPHENSON — A second bus trip to John Deere Harvester Works, John Deere Pavilion, and Kinze Manufacturing on Wednesday, March 28, still has seats available. Call 815232-3186 to reserve your seat. • The Defensive Driving class on April 17-18, taught by Doug Sommer, is nearly full. Call 815-232-3186 to register. ERMILION — Farm Bureau will distribute 28,000 placemats to more
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than 35 restaurants across the county. The placemats focus on myths and facts about agriculture and is sponsored by 17 agribusinesses within the county. • The Young Leaders will collect groceries for the Oakwood area food pantry at the Catlin and Oakwood IGA stores this week. Shoppers may leave donations in marked shopping carts at either location. • Vermilion County Farm Bureau Foundation is accepting applications for the Andrews-Brumett scholarship through Wednesday, April 4. The scholarship is open to any Vermilion County high school graduating senior who will be attending Danville Area Community College next fall. An application form is available at the Farm Bureau office or online at {www.vcfb.info}. “From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 10 Monday, March 19, 2012
profitability
Crop marketing more difficult due to price volatility BY BRYCE STREMMING
When presenting marketing outlooks to producers, I used to ask if anyone remembered the idea of a new price plateau that was prevalent for a short period of time during the mid1990s. I soon put this question to rest as no one would admit to remembering the enthusiasm the market experienced in the
summer of 1996 due to dwindling corn supplies. Rebuilding of ending stocks took place, enthusiasm quickly waned, and commodity prices retreated. Other than some intermittent rallies over subsequent years, futures traded in a relatively sideways path until 2006. The fall of 2006 ushered in not only new levels of com-
report days they are 33 and 44 cents. This has made “pulling the trigger” on pricing opportunities even more difficult, especially on an emotional level. With this in mind, it is helpful to evaluate pricing opportunities by comparing where prices have been since the jump to the higher levels that began in 2006. The two graphs shown reflect the weekly closes for nearby futures for corn and soybeans over the past five calendar years. These are useful guides when gauging pricing opportunities while at the same time attempting to lessen the emotion of marketing grain in these volatile times.
modity prices but also new levels of volatility. Causes for this increase in price levels and volatility are many and include: • World and U.S. ending stocks-to-use ratios for corn, beans, and wheat moving to levels that demand attention; Bryce Stremming • The continued increase in the percentage of U.S. corn used in the production of ethanol (currently at 40 percent); • Adverse weather events around the world when production hiccups are not easily ignored; • Large increases in money involved in the markets, both speculative and investment; and
• Perceived discrepancies in quarterly stocks, especially in corn. While all of these issues have helped produce very attractive futures prices over the past five-plus years, they also have made marketing more difficult due to price volatility. A private analyst estimated that from 2000 through 2005, daily price ranges for corn and beans on non-report days averaged nearly 4 and 12 cents, and on USDA report days, the price range increased to 6 and 17 cents. The 2006 through 2011 price ranges on non-report days were 14 and 25 cents and on report days were 18 and 33 cents for corn and soybeans, respectively. So far in 2012 these ranges are 12 and 20 cents, and on
Bruce Stremming is MID-CO COMMODITIES’ commodity risk consultant. His e-mail address is bstremming@mid-co.com.
Wild parsnip burns skin, too
growing in corn and soybean fields, but are more likely to be found growing around old farmsteads or old implements. Small numbers of the plant may be dug by hand, but Dolbeare warned farmers to wear gloves and protective clothing and to protect their eyes from the plant’s sap. Giant hogweed is a native of Eastern Europe and was introduced as an ornamental plant in the United States in
the early 1900s. The plant spreads naturally by windblown seeds or those carried by water. Farmers and landowners who suspect they may have giant hogweed may contact Dolbeare for control information at IDNR, 1 Natural Resources Way, Springfield, Ill., 62702-1271. His telephone number is 217-785-8688 and email address is ben.dolbeare@illinois.gov.
Watch for and treat noxious weed, but beware BY KAY SHIPMAN FarmWeek
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs. 50 lbs. Receipts
Range Per Head Weighted Ave. Price $33.08-55.10 $42.31 $69.72-77.46 $71.29 no longer reported by USDA This Week Last Week 88,144 126,294 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $83.81 $84.85 $62.02 $62.79
Change -1.04 -0.77
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 126.19 125.65 0.04 126.18 125.00 1.18
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 155.71 156.36 0.65
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-170 lbs. for 143.29-185.50 $/cwt. (wtd. ave. 155.13); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 03-08-12 26.2 31.6 36.2 03-01-12 32.9 17.4 31.1 Last year 34.1 28.6 39.5 Season total 934.3 774.6 871.9 Previous season total 1214.8 912.7 889.7 USDA projected total 1275 1000 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Farmers should be on the lookout for giant hogweed, a noxious weed, but they need to be careful when treating it, said Ben Dolbeare, invasive species project manager with the Illinois Department of Natural Resources (IDNR). If juice from a giant hogweed gets on skin that is exposed to sunlight, the combination causes severe blistering and permanent scars within 24 to 48 hours, Dolbeare said. If sap gets into an eye, it may lead to temporary or permanent blindness. The juices from another common invasive weed, wild parsnip, also causes burns and blisters under similar circumstances. Giant hogweed is similar to such non-native plants as poison hemlock and wild carrot. Another weed, cow parsnip, which is common in the Illinois River bottom area and elsewhere, easily may be mistaken for giant hogweed. The giant hogweed may grow up to 12 feet tall with a hollow stem that is 2 to 4 inches in diameter with purple spots and bristles. It has large, compound leaves and produces clusters of small, white flowers from June through July. A brochure with photos is available online at {http://mipn.org/MDA_Hogweed_Brochure.pdf}. Currently giant hogweeds are not widespread in Illinois, but the weed has been found in the Chicago and Peoria areas, according to Dolbeare. The plants probably are not
Giant hogweed has large clusters of white flowers and lobed leaves. The plant’s juice causes severe burns and blistering after it gets on skin and is exposed to sunlight. (Photo courtesy USDA, Michigan plant protection and quarantine)
The wild parsnip flowers from June through September. Juice from the perennial plant may cause blistering and burns on skin that is exposed to sunlight. (Photo by Kevin Black, GROWMARK)
Page 11 Monday, March 19, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Ethanol train wreck ahead? Amid the focus on events in South America and China, the trade mostly has forgotten about domestic demand. With the looming March 30 USDA grain stocks report, the trade will get better insight into how domestic demand may be evolving. The weekly Department of Energy ethanol production and stocks reports may be offering important clues to developments in a sector that has become a major consumer of corn. Since the end of the year, ethanol production has steadily declined from 963,000 barrels per day to 892,000 last week. At a 2.7 gallons/bushel yield, it represents a weekly decline of corn processing from 105 million bushels to 97 million, a pace that’s still large enough to achieve USDA’s use forecast of 5 billion bushels. Some use an ethanol yield as high as 2.77 gallons per bushel. That reduces the weekly corn grind by 2.5 million bushels, dropping it below the needed pace. Ethanol stocks have risen while production has declined, adding to demand uncertainty. The decline in output has been triggered by the elimina-
tion of blending credits. That, lower ethanol prices, and firmer corn prices pushed processing margins mostly into negative territory this year. An apparent large supply of Renewable Identification Numbers (RINs), a “certificate” that accompanies each gallon imported or produced, potentially adds to demand problems. RINs can be used by a company to achieve its ethanol mandate in lieu of the ethanol itself. Some estimates put the “supply” of RINs at the end of 2011 near the equivalent of 2.5 billion gallons. If they are used in lieu of the actual ethanol, ethanol demand potentially could be cut from 13.2-billion-gallon mandate to 10.7 billion gallons. That’s the equivalent of curtailing the corn grind as much as 925 million bushels (at 2.7 gallons/bushel) over the year, or 462 million bushels over the remainder of this marketing year. That’s 11.7 million metric tons of corn, more than the most optimistic numbers regarding Chinese corn imports. A 925 million reduction in corn grind is an extreme, but it underscores potential implications of the current negative environment in the industry. Even a reduction of one-quarter to one-third that amount changes the landscape for corn prices.
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Cents per bu.
ü2011 crop: Upside momentum remains intact with May futures moving to another new short-term high. Important resistance is layered from $6.72 up to $6.87. Make catchup sales on strength. Under the right circumstances, we might even recommend wrapping up sales in the next few weeks. ü2012 crop: Use rallies above $5.70 on December futures to make catch-up sales. We could add another sale at any time; check the Hotline daily. vFundamentals: The strength in corn continues to be fueled on speculation about China potentially needing to become a significant buyer. This notion was fueled by talk the Chinese government didn’t buy much corn from producers this winter. Good weekly export sales added to buying interest. Nearby futures are leading the way on ideas of snug old-crop supplies and tight producer holding. Upward momentum is being limited somewhat by expectations for large plantings and reports of planting in the southern Corn Belt.
Soybean Strategy
ü2011 crop: Persistent talk about Brazil and Chinese buying is guiding prices higher. Technical indicators suggest this move is getting overdone. We could recommend wrapping up oldcrop sales at any time. The market will have little fundamental support unless weather becomes an issue this summer. ü2012 crop: Use rallies to make catch-up sales. With November futures near a key objective, we could recommend another sale at any time but may wait to see the March 30 USDA reports. vFundamentals: Private analysts in Brazil keep reducing forecasts, the latest being a projection for a 67.1-millionmetric-ton crop. Some think it could be even smaller, but with harvest more than 50 percent complete, we doubt estimates change much more. Chinese buying persists, even though supplies are adequate to get the world to our new crop. And even though sales
remain strong, it’s important to remember they can be canceled or rolled into the next marketing year.
Wheat Strategy
ü2011 crop: The short-term trend in wheat has again turned higher. A Chicago May futures close above $6.62, opens the door for a test of $6.70. Use rallies above $6.60 on Chicago May futures to wrap-up old-crop sales. With the end of the marketing year approaching, use the cash market to make sales unless basis is unusually wide, but don’t carry inventories beyond April. ü2012 crop: Use rallies to $6.70 on Chicago July futures
to make catch-up sales. Producers selling 100 percent off the combine need to be aggressive in making sales on rallies. Plan on making a 10 percent new-crop sale with Chicago July futures trading at $6.85. That will boost newcrop sales to 45 percent. vFundamentals: The overall fundamental structure in wheat remains weak unless something happens to the crop this spring. Our new crop looks good, and forecasts indicate the Great Plains should receive some rains in the near-term. World traders are watching the dry pattern in Europe closely.
FarmWeek Page 12 Monday, March 19, 2012
pERSpEcTIvES
LETTERS TO THE EDITOR Put gray wolves, feral hogs together
Baby pigs rest under heat lamps beside their mothers on the Eldon and Chris Gould farm near Maple Park in Kane County. These farrowing stalls allow the little pigs to nurse and move around while pro-
tecting them from being crushed by the sows. Gestation stalls, in which the mother sows are kept before giving birth, have come under increasing scrutiny. (Photo by Ken Kashian)
Gestation stall ban would jeopardize hogs, farmers From the time I could walk, I’ve worked with hogs. As I grew up at my father’s side, I learned the joys and frustrations of pork production and the subtle nuances of caring for what can sometimes be a cantankerous animal. BRIAN Dad is gone now, DUNCAN but his farm continues on — though a lot has changed. Open lots and pastures have been replaced by environmentally controlled, protective housing. Gone are the days of tossing feed to pens of animals hoping that the strong ones didn’t eat too much and the weak ones could somehow survive. Gone are the days of rummaging through piles of straw each morning to find the little pigs that had
been crushed by their mothers. I no longer need to shovel a path through the snow to reach feeders and hope the temperature gets warm enough for the animals to come out and eat. I’m part of an industry that has spent literally billions of dollars over recent decades improving the tools we use to produce pork. These changes were made with one goal in mind: providing better care for our animals. Perhaps that’s why I’m so frustrated by McDonald’s recent announcement that it would require its pork suppliers to outline their plans to phase out the widely accepted sow housing practice of gestation stalls. I used to keep my sows in pens like those McDonald’s and other folks wish us to use. I couldn’t control individual diets like I do now.
I had to cull sows after two or three litters because they were too fat, too thin, or injured by other sows. I used to struggle to give individual veterinary care to animals even to the point of risking personal injury to administer treatments or vaccinations. Perhaps I could understand McDonald’s actions if it had science, research, or experience to back its stance. However, there is no evidence that there is any better way to care for a sow than what is currently being used in most modern production systems. Unfortunately, the decision seems to be driven by emotion and perception regarding what makes for a “happy” pig while ignoring what research and experience tell us is truly in the animal’s best interest. Perhaps what saddens me the most is I know the end result of an effective ban on gestation stalls is more animal suffering and more risk to producers’ health and safety. For more than 40 years I’ve done everything within my control to give my animals the best care possible. I give thanks to our Creator each day I’m able to participate in this wonderful calling of livestock production. To now be told to do something that I know brings harm to the animals under my care is indeed a tough pill to swallow. Ultimately, my hope is that the voices of the people with experience and expertise are heard and prevail on this issue so my dad’s grandchildren will be able to care for their animals using what they know are the best tools available. Brian Duncan and his family operate a diversified grain and livestock farm north of Polo. He currently serves as president of the Ogle County Farm Bureau.
Editor: In the March 5 edition of FarmWeek, Marc Miller of Illinois Department of Natural Resources (IDNR) notes that feral hogs (an invasive species) are now occurring in 17 Illinois counties. In an IDNR press release, dated Jan. 23, 2012, it was noted that gray wolves in Illinois north of I-80 are listed as threatened under state law. Wolves that have migrated to Illinois from Wisconsin are now under State of Illinois wolf management responsibility. Wolves have the “full protection of the State of Illinois’ Endangered Species Protection Act.” Because of recent sightings of wolves, both day and night, livestock, domestic animals, and other wildlife are now threatened in Northern Illinois counties. This clearly indicates that these wolves are becoming acclimated to people and are moving from Wisconsin looking for food. Would the IDNR considered moving gray wolves (an invasive species) from Northern Illinois to counties where feral hogs (also an invasive species) currently exist in order to solve two problems for Illinois farmers with one action? I. RONALD LAWFER, Stockton
Opposes increase in corn checkoff
Editor: I am opposed to the rate increase for the corn checkoff. The markets are controlled by supply and demand. As a producer, I look at what commodity will be most profitable. The seed industry does the research to develop new products. The money taken from us for the checkoff is “fun money” used for a few high-paying jobs, a few advertisements, and trips around the world for a few executives. But the worst thing about checkoffs is that my hard-earned money is taken without my permission. This is un-American. Checkoffs are a waste of money. They don’t put more money in the producer’s pocket. I urge producers to vote “no” on the referendum. RICHARD WOESSNER, Pearl City Editor’s note: Illinois corn checkoff contributions are refundable upon request of the producer. The rate of refunds averages about 3 percent annually.
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