Lt. Gov. SheiLa SiMon does not expect her committee to recommend forced school consolidations. .........................................3
a CoMMunity CoLLeGe professor says education is needed for rural residents before broadband adoption will be widespread. ...........3
FedeRaL tax bReakS for corn-based ethanol are gone, so the biofuels sector is working to bring cellulosic ethanol on board. ............5
Monday, March 12, 2012
Two sections Volume 40, No. 11
Galesburg field hearing March 23
Lawmakers leaning toward $23 billion ag cut target
BY MARTIN ROSS FarmWeek
As farm state lawmakers continue to mull ag priorities and crunch the budget numbers, the 2012 farm bill budget may be coming into focus, but the timetable for the bill’s final passage appears uncertain. Senate Ag Committee Chairman Deb Stabenow (D-Mich.) suggested she and her colleagues would develop a farm bill based on the $23 billion in 10-year ag spending cuts put before the congressional deficit “super committee” last fall. House ag leaders last week asked the House Budget Committee to consider keeping cuts at that level, noting “the agriculture economy is highly cyclical.” “I’d also say that there’s an awful lot of uncertainty as to what the House may come up with — what it will have to face,” American Farm Bureau Federation (AFBF) chief economist Bob Young told FarmWeek. The super committee plan anticipated eliminating direct payments, cutting conservation spending by $6 billion, and food stamps and other nutrition programs by $4 billion. As a House government oversight panel eyed nutrition
program abuse, Stabenow argued program savings could be derived from closing a loophole in low-income heating assistance, and rejected any structural changes to the Supplemental Nutrition Assistance Program (SNAP or food stamps). House Ag Committee Ranking Democrat Collin Peterson (D-Minn.) warned any House Republican demand for deep cuts in SNAP funding could stall farm bill passage. House Ag Chairman Frank Lucas (R-Okla.) raised doubts that a farm bill could clear the House by Memorial Day, citing Congress’ “legislative environment.” “We haven’t even done a highway bill yet,” he noted. House Ag Committee member Rep. Bobby Schilling, a Colona Republican, will participate in a March 23 field hearing at Carl Sandburg College in Galesburg. Illinois farmers will be offered an opportunity to voice priorities for the next farm bill during the 9 a.m. hearing at the college’s Student Center Building B, 2400 Tom L. Wilson Boulevard. The first of the House hearings was conducted last Friday in Saranac Lake, New York, a March 30 hearing is planned at Arkansas State Uni-
versity, and committee members will convene on April 20 in Dodge City, Kan. At least two Capitol Hill hearings likely will follow. AFBF President Bob Stallman is set to testify Wednesday at a Senate Ag hearing on the farm bill.
The hearing, which wraps up committee review of farm bill issues, will evaluate the need for and economics of safety net resources for farmers who “continue to face increasingly volatile crop prices, input costs, and the threat of natural disasters,”
according to AFBF. Last week, the Senate committee held a hearing focusing on “healthy food” initiatives, local production, and nutrition, exploring opportunities to help develop local markets that enable farmers to tap growing consumer demands.
Feds eye fat in farm bill nutrition programs Food security for infants, children, and the needy is “close to my heart,” U.S. Sen. Dick Durbin told Illinois Farm Bureau board members recently. For that reason, the Springfield Democrat said he has “no sympathy” for those who abuse programs such as SNAP (the Supplemental Nutrition Assistance Program), i.e, food stamps. Durbin told IFB leaders he was working with Senate Ag Committee Chairman Deb Stabenow (D-Mich.) to “tighten up the SNAP program.” Last week, the U.S. House Oversight and Government Reform Committee examined reported fraud within the program. SNAP and other food assistance programs fall under the farm bill nutrition title, accounting for roughly two-thirds of the federal government’s annual ag spending. Eliminating program waste and abuse is a cause both for bipartisan lawmakers and Farm Bureau, which has advocated program administrative improvements that could trim as much as $4 billion in long-term ag budget costs. “There ought to be a way of making things more efficient without cutting (nutrition) programs,” IFB President Philip Nelson stressed. USDA Undersecretary Kevin Concannon
noted that from Oct. 1 to Dec. 31, more than 225 stores that violated SNAP rules were fined or temporarily banned from the program. More than 350 stores caught trafficking in food stamp benefits may no longer participate, Concannon told House lawmakers. “We have a goal every year of tightening that down,” USDA Chief of Staff Krista Harden told IFB directors. Meanwhile, Durbin applauded USDA for including Illinois and Chicago’s public schools in a new demonstration project aimed at reducing fraud and increasing eligible low-income enrollment in the National School Lunch Program. Illinois will be able to enroll students for free meals automatically based on Medicaid participation, reportedly preventing eligibility errors, reducing application paperwork, and creating new administrative efficiencies. In January, the Chicago Tribune revealed cases in which school employees submitting false information in order to enroll more children for free or reduced-cost lunches. “Recent reports of abuse and fraud within the system threaten to damage the integrity of the program,” Durbin said. — Martin Ross
Periodicals: Time Valued
Capitol a flurry as committees meet bill deadline House OKs SMV bill BY KAY SHIPMAN FarmWeek
State legislative action was in overdrive last week as lawmakers hustled to shepherd bills and meet Friday’s deadline for committee passage in the chamber where the bills originated. Adding excitement was attention to the March 20 primary election, and Illinois’ higher profile given the incon-
clusive results from the Super Tuesday presidential primaries. Illinois Farm Bureau saw early success with HB 4598 on improper usage of slowmoving-vehicle emblems. Rep. Pat Verschoore (DMilan) sponsored the bill that would increase the current penalty from $25 to $75 for improper usage and expand the definition of illegal use
FarmWeek on the web: FarmWeekNow.com
beyond a road right-of-way. The House passed HB 4598 with a 106-10 vote. Sen. Dave Koehler (D-Peoria) will sponsor the bill in the Senate. Another IFB-supported bill remained in the Senate Agriculture and Conservation Committee. SB 3271, sponsored by Sen. Michael Frerichs (DChampaign), seeks to establish statewide standards for
commercial wind energy projects. In committee, SB 3271 faced stiff opposition from wind energy companies, concerned landowners, and county and local government associations, said Paul Cope, IFB assistant director of state legislation. “IFB is working to ensure that our landowner members are protected by some standards,” Cope said. “We’re trying to find common ground to satisfy all parties involved See Capitol, page 3
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, March 12, 2012
Quick Takes FIRST FIELD HEARING — New York Farm Bureau members testified about the importance of providing a strong crop insurance program, addressing ongoing challenges with immigration, and adopting a “21st century approach” to dairy issues in the 2012 farm bill at last week’s Senate Ag Committee field hearing in Saranac Lake, N.Y. “The devastating weather events of 2011 have only served to highlight the need for some major changes in our crop insurance program,” grower Larry Eckhardt said. “Congress should instruct the USDA to research and develop, with input from actual growers of specialty crops, risk management tools that will work more effectively for diverse crop farms.” Panelists highlighted the need to offer a buy up option in the Non-Insured Disaster Assistance Program (NAP) so that specialty farmers can better manage risk and the importance of maintaining adequate dairy prices and margin protections. A farm bill hearing is scheduled in Illinois on March 23. QUINN SEEKS FEDERAL DISASTER HELP — Gov. Pat Quinn last week asked President Barack Obama to declare Gallatin, Randolph, Saline, Union, and Williamson counties federal disaster areas because of devastation from Feb. 29 tornadoes and severe storms. Damage assessment teams from the Illinois Emergency Management Agency (IEMA), the Federal Emergency Management Agency (FEMA), the U.S. Small Business Administration (SBA) and affected communities documented damage to homes and businesses. A total of 104 homes were destroyed by severe storms and tornadoes; 50 suffered major damage, and 276 others were seriously damaged. Seven people were killed. Ten businesses in Saline County sustained major damage, while 23 others were affected by the storms. If Quinn’s request is approved, residents in the approved counties would be eligible to apply for grants and low-interest SBA loans. Affected businesses also would be able to apply for low-interest SBA loans. IEMA and FEMA representatives and local government officials are to start meeting today (Monday) to document expenses related to the tornadoes and storms. PENNYCRESS FOR YOUR THOUGHTS — Too early in the season for a good farm field day? Not according to Brad Glenn. The group Pennycress Partners will host three field days next week designed to offer farmers and others a chance to view pennycress, a new oilseed crop with biofuels potential. Since it is an overwintering crop, it can be a complement to corn and soybean production and provide winter ground cover. Moderate winter weather has contributed to healthy development: “It kind of looks like a field of dandelions right now,” said Glenn, who’s helped coordinate pennycress production. The first field day is from 9 to 11 a.m. March 20 at the Bruce Klein farm two miles north of Lexington in McLean County at 23479 E. 2700 North Road. A second is March 21, also from 9 to 11, at Brian Corkill’s farm south of Kewanee in Henry County on Illinois Route 78, then west a half-mile on 1100 North Road. The final field day is from 9 to 11 March 22 at Ken Folkerts farm between Raymond and Nokomis in Montgomery County on 2100 North Road, east of 1300 East.
(ISSN0197-6680) Vol. 40 No. 11
March 12, 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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EmErging issuEs
Winter third-warmest in Illinois; the mild trend could continue BY DANIEL GRANT FarmWeek
It may be safe to say winter is over in Illinois, even though spring doesn’t officially begin until March 20. The forecast on Friday called for temperatures in Central Illinois this week to reach the 70s, which would be well above normal, according to Emily Timte, meteorologist with the National Weather Service in Lincoln. “It looks like we’ll start warming up,” Timte told FarmWeek. “Temperatures could be well above normal.” The temperature the first week of this month averaged between 1.5 and 5 degrees above normal around the state, according to the Illinois State Water Survey (ISWS). And it appears that trend will continue. “The monthly outlook is calling for this month to be above normal (in terms of temperature and precipitation),” Timte said. “The polar jet stream has been stuck up north. That’s why the colder air wasn’t able to filter into our area and we didn’t have much snow,” she continued. “It looks like we’re kind of keeping that same pattern (into spring).”
The average temperature statewide for the climatological winter (December through February) was 34.2 degrees, 5.2 degrees above normal. “That was the third-warmest winter on record,” said Jim Angel, ISWS state climatologist. The warmest winter on record in the state, with an average temperature of 37.1 degrees, occurred in 1931-32 while the second-warmest winter temperature (34.5 degrees) occurred in 1997-98 and 2001-02. Precipitation this winter averaged 6.73 inches, two-tenths of an inch below normal. Most of it was rain, though, as snowfall totals were just 50 to 75 percent of normal in Northern Illinois and 25 to 50 percent of normal in the central and southern regions of the state. The spring-like temperatures in recent weeks gave many farmers, particularly those in Southern Illinois, a chance to get an early start on pre-planting fieldwork. “It looks like we may be leaning toward an early spring,” said Randy Martinson, market analyst with Progressive Ag. “It may result in more corn.”
Can farmland values maintain torrid pace? Farmland values are expected to remain strong this year based in part on a positive outlook for farm income. But the growth rate could slow, particularly if crop prices moderate this year as USDA is projecting. “We see this as a market fueled by income expectations,” Michael Morris, chief appraiser for 1st Farm Credit Services in Bloomington, said last week at the WILL AM 580 ag outlook meeting in Covington, Ind. “It could soften, but we don’t see any reason why it would completely go away.” The Ag Department last month projected average crop prices this year could decline by 20 percent for corn, 1.7 percent for beans, and 13 percent for wheat compared to a record year for farm income in 2011. Net income still was projected to total $96.3 billion this year, which would be the second-highest on record. “Even with a little softening we see stable to strong (commodity) prices,” Morris said. “A lot hinges on this year’s crop.” Morris noted in some cases farmland values increased by about 50 percent the past two years. He predicted farmland values from July 2011 to July 2012 could increase another 15 to 25 percent, although most of that increase took place last year. “So far this year the market seems to be taking a breath,” Morris said. Prices in Central Illinois currently are averaging between
$11,000 and $12,000 per acre for Class A ground, $7,000 to $9,000 for Class B ground, and $6,000 to $8,000 for Class C ground. The high prices helped drive up the supply of farmland on the market, compared to recent years, according to the appraiser. “There has been a lot of sales activity in some areas,” Morris said. “Supply has come up with demand. Demand is being fueled by great crop returns.” The market is down in many areas, however, for land intended for development and recreational land.
Morris said that trend is due to the poor U.S. housing market and economic struggles. “There are instances in which people sold land (that was slated for development) for $40,000 to $50,000 (per acre) and they bought it back for $10,000 to $12,000 and are farming it again,” he said. A full report on Illinois farmland values and lease trends will be released next week at the Illinois Society of Professional Farm Managers and Rural Appraisers’ Illinois land values conference Thursday in Bloomington. — Daniel Grant
DATEBOOK March 12 On-the-Road seminar, 7 p.m. Grundy County Farm Bureau building, Morris. March 13 On-the-Road seminar, 7 p.m. Ford-Iroquois County Farm Bureau, Gilman. March 14 On-the-Road seminar, 1:30 p.m. DeWitt County Extension building, Clinton, 217-935-2126. March 16 On-the-Road seminar, 1:30 p.m. Kendall County Farm Bureau building, Yorkville. March 20 Illinois primary election March 22 On-the-Road seminar, 6 p.m., Cass-Morgan Farm Bureau, Jacksonville. March 28 Agriculture Legislative Day, State Capitol, Springfield. March 29 On-the-Road seminar, 9:30 a.m., University of Illinois Extension office, Hardin. On-the-Road seminar, 6 p.m., Livingston County Farm Bureau, Pontiac.
Page 3 Monday, March 12, 2012 FarmWeek
Around IllInoIs
Simon sees no forced school consolidations BY DAVE MCCLELLAND FarmWeek
Education, local foods, and rural emergency medical services (EMS) are the principal issues Lt. Gov. Sheila Simon is working on these days, she told those attending the 23rd annual Sheila Simon Rural Development Conference in Peoria last week. The conference was pre-
sented by the Illinois Institute for Rural Affairs at Western Illinois University in conjunction with the Governor’s Rural Affairs Council, which Simon chairs. She acknowledged that Gov. Pat Quinn’s comments about the vast savings the state could realize by reducing the number of school districts from nearly 900 to 300 “made the hair stand up” on a number of people’s necks. Coming from a rural area herself, Simon said, “We know what schools mean to the community, to the com-
munity’s identity.” She said she wanted to get involved to “reshape the discussion” and thus heads the Classrooms First Commission, a 20-member group charged with recommending ways Illinois school districts can improve student learning and reduce district costs. Draft recommendations from the commission are expected to be completed by next month and will be submitted to four public hearings to gauge the public’s response. Simon, however, gave a
clue as to what she expects to come from her group: no recommendation for forced consolidation. “Sometimes consolidation works and sometimes it doesn’t work,” the lieutenant governor said. Those schools that do not want to consolidate still might find ways to save money by buying food items in bulk or making a specialized class available to students from both districts. On the local food issue, Simon said her office continues to work with farmers’
markets to make the Illinois Link card more readily accepted. The link card is used to provide government assistance. She said it is imperative that more of Illinoisan’s food dollars be spent in Illinois, that of the $48 million Illinois residents spend on food each year, $46 million is spent on food that comes from outside the state. Simon said she is working with the General Assembly on legislation to help make EMS available throughout rural Illinois.
Carbon dioxide bill Researcher: Education and age slowing rural broadband adoption raises IFB concerns FB input sought for curriculum BY KAY SHIPMAN FarmWeek
Rural Illinois faces more than infrastructure needs to get its residents online with high-speed Internet, a Lake Land Community College professor told county Farm Bureau leaders recently. “We could spend a gazillion dollars (on infrastructure), but I don’t think it will make a difference until we address needs,” said Mike Rudibaugh, also the mapping Mike Rudibaugh director with Partnership for a Connected Illinois. Rudibaugh discussed rural broadband at the recent Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield. “If we’re trying to address the digital divide, education is a barrier (to broadband adoption) in all regions of the state,” he said. “Some people in rural Illinois are still trying to define what broadband is.” Rudibaugh, a self-proclaimed “small-town guy,” proposed a model curriculum and broadband training program be developed for rural residents. Such a program could be
offered in community colleges’ computer labs and promoted through Farm Bureau and University of Illinois Extension, he suggested. Rudibaugh added the curriculum and program also would need to be evaluated to determine if they were working before they would be replicated around the state with special attention to regional needs. He used a national trends study to make his case. Research has shown that age, income, and education influence if and how an individual uses computers and the Internet. On average, broadband usage is down in areas where more than 13 percent of the population is 65 or older, where more than 15 percent of adults did not graduate from high school, and where the average annual family income is $25,000 or less. Some regions of the state fall into one or more of those categories. Western Illinois has areas with older populations, while parts of Southern Illinois have populations with less education and lower incomes, according to Rudibaugh. Before a rural broadband curriculum and training program is developed, Rudibaugh told Farm Bureau leaders information will be needed on everything from people’s wants and needs to how to publicize Internet classes to people who don’t use the Internet.
Illinois firm to supply transmission cable to move wind-generated energy Gov. Pat Quinn last week announced an agreement between Rock Island Clean Line LLC and Southwire Co., based in Flora, for a project to enhance transmission of renewable energy. Under the agreement, Southwire will supply the overhead transmission cable for the Rock Island Clean Line project. The project will consist of about 500 miles of overhead, high voltage direct current transmission lines that will deliver 3,500 megawatts of
renewable power from Iowa, Minnesota, Nebraska, and South Dakota to Illinois towns and businesses and to other states to the east. Construction could begin as early as 2014 and continue over the next few years. The Rock Island Clean Line will enable about $7 billion worth of new wind energy projects that had stalled due to lack of transmission capacity to move forward. An Illinois State University study found that wind energy in Illinois generates
$22.2 million in annual property taxes and supports nearly 600 permanent jobs and more than 13,000 construction jobs. Illinois led the nation in turbine installation last year with 404 turbines. The Chicago-area is home to the U.S. or global headquarters of 14 wind developers or manufacturers. Illinois also is home to hundreds of companies that provide services to the wind energy industry or manufacture wind components.
A legislative proposal to create underground carbon dioxide (CO2) storage regulation is of great concern to Illinois Farm Bureau, which opposes the bill. SB 3758, sponsored by Sen. James Clayborne (D-Belleville), would create the Carbon Dioxide Geologic Storage Act, establishing regulations and procedures for underground storage of CO2. The bill was to be called for a vote in the Senate Energy Committee last week, but Clayborne agreed to hold it for additional input, according to Bill Bodine, IFB associate director of state legislation. As it is currently written, SB 3758 automatically would compel all landowners to go along with a CO2 storage project if only 51 percent of the
landowners in the storage area sign up to participate, said Kevin Semlow, IFB director of state legislation. That action raises significant concerns about private property rights for landowners. The bill would allow the taking of CO2 storage space without providing landowners their due process rights, said Semlow. Bodine noted companies have expressed interest in developing these storage facilities in several counties in the state. At the present time, this proposal does not impact the Archer Daniels Midland Co. CO2 storage pilot project or the FutureGen project. Last November, ADM began injecting the gas in Decatur’s Mt. Simon Sandstone more than a mile underground. — Kay Shipman
Capitol Continued from page 1 while protecting our landowner members.” The proposed standards would provide protection for private property rights and allow for reasonable development of commercial wind energy projects. Farm Bureau delegates debated and approved similar policy at the IFB annual meeting in December, Cope noted. SB 3271 incorporated existing state law that allows counties and municipalities to allow meteorological towers to be sited without formal approval. The proposed bill still would allow counties to permit, site, and approve wind projects. A proposal that would ban farmers from docking the tails of cattle passed in the House Business and Occupational License Committee. IFB opposes HB 1697. The bill would prevent farmers from using a practice that helps them minimize infection and improve cow cleanliness. It would allow tail docking to be done only by a veterinarian if medically necessary, under hygienic conditions, and only if the animal is anesthetized. The proposal would require the procedure to be done in a way that would minimize any long-term pain and suffering of the animal.
FarmWeek Page 4 Monday, March 12, 2012
moving ag ahead
Vilsack: U.S. still too dependent on foreign oil High fuel prices could slow growth BY DANIEL GRANT FarmWeek
Economic recovery could be slowed this year in the U.S. and around the world due to high oil and fuel prices. The price of oil last week remained above $100 per barrel and the Energy Information Administration (EIA) recently predicted there is a moderate chance oil prices by this summer could reach or surpass $125 per barrel. EIA projected the price could average $100 per barrel for the year as a whole, compared to $94 a year ago. Meanwhile, the average price of a gallon of regular gasoline nationwide the first of last week reached $3.77, up 27 cents from the same time last year, the motorist group AAA reported. The average price of diesel
fuel surpassed the $4 mark in late February at $4.05 per gallon, up 34 cents from a year ago. Jason Henderson, vice president of the Federal Reserve Bank of Kansas City, recently said higher fuel prices will hit rural economies particularly hard as people in rural areas typically drive more and make less money compared to their urban and suburban neighbors. “High gas prices strain rural budgets,” Henderson said. The Ball State University Center for Business and Economic Research (CBER) recently estimated a $1 increase in the average price of a gallon of gas would slow the economic growth rate in Indiana by 1.2 percent. Fuel prices over the years have trended higher as the worldwide daily consumption of petroleum the past generation has increased from 66 million barrels to 85 million
barrels per day. “Demand for gasoline may place pressure on prices over the long run,” the CBER noted in a report. “It does not explain the rapid increase in prices we now see at the pump.” Ag Secretary Tom Vilsack said pain at the pump would be even more severe if not for the role of biofuels. Vilsack at the Commodity Classic in Nashville said the U.S. must continue to reduce its reliance on foreign oil. “Were it not for the biofuels industry, we’d all be paying $1 per gallon more for gas,” said Vilsack, who noted U.S. reliance on foreign oil has been reduced from 62 percent to 45 percent. The Obama administration’s goal is to reduce reliance on foreign oil by another 33 percent in the next decade. “That would be equivalent to the amount we take from the Middle East,” Vilsack said. “Let’s maintain the RFS
Senate eyes highway bill; AFBF offers groundwork relate to producers under crop share leases, IFB is seeking clarification of regulations regarding As the U.S. Senate takes up transportation “interstate” vs. “intrastate” movements by prodebate, producer groups are fueling efforts to ducers in such cases. keep the nation’s highways free of farm regula• Clarify driving restrictions for farmers tory roadblocks. transporting ag goods during planting and harNear-term prospects for a Senate surface vest seasons. Some safety interests have chaltransportation package were uncertain last lenged ag exemptions from allowable consecuweek following failure of a vote to limit amend- tive “hours of service” and related commercial ments to the so-called “highway bill” and, ideal- driver requirements, Nielsen noted. ly, speed passage. The latest extension of exist“We’ve always contended that movements of ing transportation programs expires March 31. commodities and supplies within 150 air miles Senate leaders propose a two-year, $109 bilof the farm to the first point of sale should not lion highway reauthorization. House Transbe a regulated movement,” he said. • Allow farmers and custom harvesters with a Class A commercial driver’s license to move ‘Our growers travel our highways and more than 118 gallons of diesel bridges, and they want to see infrastruc- fuel without a hazardous mateendorsement. ture maintained and preserved for rural rialNational Corn Growers areas.’ Association policy specialist Elizabeth Jones shares Farm Bureau’s push to clarify inter— Elizabeth Jones state-intrastate issues and preNational Corn Growers Association serve ag exemptions. “Our growers travel our portation Chairman John Mica (R-Fla.) favors a highways and bridges, and they want to see five-year, $260 billion measure, but Illinois infrastructure maintained and preserved for Farm Bureau National Legislative Director rural areas,” Jones told FarmWeek. “Of Adam Nielsen said House leaders may await course, all that’s going to be ruled by the budgSenate action before proceeding. et.” Beyond setting the stage for road and bridge The U.S. Department of Transportation’s funding, the highway bill also addresses future Federal Motor Carriers Safety Administration regulatory direction for on-road shippers and (FMCSA) has indicated it would study interusers. state-intrastate concerns. But because of existIn a letter to Senate members, the American ing interstate commerce laws, Jones believes “it Farm Bureau Federation supported amendwill probably take some congressional intervenments that would: tion.” • Allow farmers who live near state borders IFB is working with lawmakers to fine-tune to transport products to their nearest processexisting proposals designed to ensure relief for ing facility, even if it is in a neighboring state. farm drivers. “We’ll know soon if regulatory On the heels of a successful effort to clarify discussions with (FMSCA) will bear any more commercial “for-hire” carrier rules as they fruit,” Nielsen added. BY MARTIN ROSS FarmWeek
(Renewable Fuel Standard) and invest in new opportunities to reduce our reliance on foreign oil and create jobs and income opportunities here.” Vilsack urged Congress to pass a farm bill this year with a strong crop insurance component. He called for increased fund-
ing for ag research to help boost food production, and he said USDA will continue to work with the Environmental Protection Agency and Department of Labor so those agencies have a “greater understanding and appreciation of what (proposed) regulations mean in the real world.”
Ethanol well-positioned to reduce ‘petrorisk’? Biofuels advocates tout the green benefits of ethanol, the rural job creation that’s come with ethanol development, and the market-based income it’s put into producers’ pockets. But as pump prices approach or pass the $4 mark, and hostilities in major oil-producing regions continue to dominate the headlines, ethanol is gaining ground as a key tool in “petrorisk” management. So says James Canton, CEO of the Institute for Global Futures, who argues the need for the U.S. to “change the energy dynamic” away from predominantly petroleum-based consumption. Canton urges development of a “biofuels/smart grid infrastructure,” with “cities that run on biofuels.” Worldwide, “geopolitical risk” has at least tripled over the past two years, with economic instability in the European Union, the U.S. “digging out of the real estate, financial debacle,” asset/banking issues in Asia, and conflicts in countries including Syria, Turkey, Iran, and Israel. “(Petroleum dependence) is the largest national security risk we have facing our nation,” Canton warned. “The issue is not ‘if ’ — the only issue is when 49-50 percent of our foreign oil dependence becomes complicated by hostile geopolitics. We don’t have to wait very long: The situation’s heating up, and will continue to heat up. “But clearly, foreign oil overdependence has not gotten the attention it really deserves as a national security risk in Washington. Somehow, that seems to have escaped policymakers. Somehow, that seems not to make a difference. The economics seem to trump that.” Canton argues that “clearly, biofuels are the future, and certainly, they are the ‘now.’” Ethanol currently is the only biofuel “that can scale up (in production) and give us the energy we need,” he maintained. Industry and policymakers must chart a “bold future that accelerates biofuels,” including creation of “the next energy grid, the next vehicles, a complete (biofuels) infrastructure,” he said. Canton sees four major factors in rising global energy demand: a growing world population, the push for improved gross domestic product, and a rapidly emerging middle class particularly in the developing world. He noted projections that 10 to 20 new “megacities” with populations in the millions may emerge in China alone. Accompanying growth in India “is not going to be productive” in terms of global energy tensions, Canton warned. “The world is not using less — it’s using more,” he said. “Advanced biofuels will protect America’s future economy and security. Petrorisk is geopolitical suicide.” — Martin Ross
Page 5 Monday, March 12, 2012 FarmWeek
eNergy
Ethanol looks to improve market advantages BY MARTIN ROSS FarmWeek
What do you do when you’re particularly well-positioned in the race for the consumer fuel dollar? If you’re the ethanol industry, you widen your lead. Now that federal tax breaks for corn-based ethanol are gone, the biofuels sector is ramping up efforts to boost per-bushel ethanol yields, bring cellulosic ethanol on board at a competitive cost, develop new products to hedge ethanol profit margins, and fine-tune plant efficiencies. As per-gallon pump prices approach or top the $4 mark, Illinois Farm Bureau National Legislative Director Adam Nielsen sees ethanol “wellplaced to be a solution in the $5-per-gallon discussion coming up.” Last week, a gallon of ethanol was selling for nearly $1 less than a gallon of gasoline at wholesale. Iowa-Wisconsin studies indicate consumers would have
paid 89 cents more per gallon of gas in 2010 “without ethanol coursing through our motor fuel supply,” Nielsen said. “It all comes back to being a significant domestic energy resource,” Nielsen argued. “The numbers show, dramatically, that ethanol has been that in recent years.” Increasing the gap between ethanol fuel and gas prices should further foster consumer support, he suggested. Vince Kwasniewski, vice president of GTL Resources USA, continues to investigate ways to lower costs and improve product value at his company’s Rochelle-based Illinois River Energy plant. Kwasniewski cited the following keys to improving production margins: increasing both
Corn stover research yielding surprises A major ag technology corporation is working to pull together a virtual one-stop, agronomically sustainable, farm-tofuel shop for cellulosic ethanol production. In 2011, DuPont, hybrid partner Pioneer, and Iowa State University evaluated stover collection practices on roughly 7,500 acres adjacent to a planned ethanol plant site at Nevada, Iowa. Last summer, DuPont Danisco Cellulosic Ethanol (DDCE) selected Nevada for a cellulosic “biorefinery” adjacent to Lincolnway Energy LLC’s corn ethanol plant. The initial phase of DDCE’s stover research program involved 50 farmers; 150 are expected to participate in this year’s 25,000-acre trial. On the biomass processing side, DuPont is collaborating with Genencor, its recently acquired industrial biosciences/enzymes division. “We are unique in the (biofuels) space in terms of having all the components to develop cellulosic ethanol from seed to fuel under one roof,” DuPont Industrial Biosciences Global Business Director Steven Mirshak told FarmWeek. “Pioneer has been very valuable in helping us understand the agronomy of corn stover collection. Our results have been very positive. We’re finding that residue management is a critical issue for growers. Collecting about half the residue — we do a partial stover harvest — is very important in high-yielding fields to improve (future) yield.” Preserving the conservation/nutrient value of residues has been a major focus of stover-to-ethanol research. Mirshak noted growers usually take nutrient value measurements at the time of silage harvest; DuPont and Iowa State have discovered perhaps 40-50 percent of those nutrients have leached back into the soil by the time stover is collected. Thus, the need for soil nutrient replacement following stover harvest is “much less than most people had expected,” Mirshak related. Researchers also have studied soil organic matter, erosion concerns, and other factors that will play into sustainable stover harvest. Mirshak reported DuPont is focusing on higher-yielding fields “where we see the greatest benefit for and the greatest need for residue management.” Once a field reaches roughly 170 bushels per acre, he said, excess stover can result in stand establishment concerns. “Yields will continue to increase over the years, as they have for the past 60 to 80 years, so residue management will continue to be an important issue,” Mirshak noted. “What we’re doing will be a service to farmers.” — Martin Ross
ethanol and co-product distillers dried grain (DDGS) yields, reducing plant electrical costs and energy needs, and optimizing individual operations. “We’ve continued to update computer software and technology to increase efficiencies,” Judd Hulting, spokesman with Annawan’s Patriot Renewable Fuels LLC, told FarmWeek. Patriot also is extracting industrial grade corn oil for biodiesel and other uses at the back end of ethanol/DDGS production, adding another revenue stream for the operation.
Meanwhile, Chuck Corr, Archer Daniels Midland Co. ethanol technical service manager, noted advances in breaking down increasingly complex sugars within the corn plant to generate more fuel “without producing any more corn.” Tapping previously inaccessible sugars opens the door for development of marketable new chemical feedstocks, he said. Those “platform chemicals” can replace petroleumbased compounds in industrial processing or provide “bioadvantaged molecules” that offer greenhouse gas reduction, sustainable manufacturing, or other improvements over petrochemical use. Biobased paints and coatings are merely the tip of that value-added iceberg. Corr anticipates introduction of
new polymers that can enhance plastics and textiles and a new generation of more consumer-friendly biodegradable products. While the industry today is focused on cost-effective improvements in microbial enzymes used to break starch and fiber down into usable sugars, global energy consultant James Canton anticipates a new era of advanced technology that could revolutionize biofuels. By manipulating materials at the atomic level — i.e., nanotechnology — he sees scientists employing “synthetic biology” to spin off new fuels and creating specific biofuels blends “beyond the pump.” “New fuels will come from hacking matter,” Canton predicted. “It’s innovation, innovation, or die.”
Breaking down the costs Bringing down the cost of breaking down biomass is crucial to bringing cellulosic ethanol to the pump, according to Novozymes Executive Vice President Peder Holk Nielsen. Novozymes, a Denmarkbased global biotech company, has released the latest in its Cellic CTec line of enzymes that can be used to break down cellulosic fiber and extract sugars needed to produce ethanol. Cellic CTec3 is 1 1/2 times more efficient than Novozymes’ predecessor product, Cellic CTec2. Peder Holk Fifty kilograms of Cellic Nielsen CTec3 reportedly can yield the same amount of biomass ethanol as 250 kilograms of competing enzymes. CTec3 is a “robust” enzyme that can break down a variety of materials including corn stover, Nielsen noted. Enzyme costs have been a major challenge for cellulosic ethanol producers. More efficient enzymes mean ethanol could be produced for $2$2.50 per gallon, Nielsen told FarmWeek. “If the plants were there, cellulosic ethanol probably would be competitive with corn ethanol and gasoline,” he said. “It’s important to bring cellulosic ethanol into the bracket where it’s commercially viable.
“Cellulosic ethanol will only make it if it’s competitive on its own merits. We don’t believe in a world of subsidies moving forward.” Novozymes hopes to demonstrate cellulosic ethanol viability FarmWeekNow.com through partnerships with Italy’s View a video with Peder Holk M&G Group, Nielsen about the cost of biofuels which owns at FarmWeekNow.com. research-development facilities in Italy, Brazil, and Ohio, and Fiberight, a Maryland-based corporation that’s focused on converting municipal wastes and biomass into fuel. Both are set to begin production using CTec3 this year. While Nielsen maintains biofuels must stand on their own in the market, he stresses the importance of national policies such as the U.S. Renewable Fuels Standard, which encourages renewable fuel development and use. “What politicians may be ignoring is that the technology is actually ready and is available as soon we have the demonstration plants up and running,” Nielsen said. “Then, we will have proven to the world that one can actually break down agricultural waste, turn it into sugar, ferment it into ethanol, and put it into a car at a price that is competitive with ethanol.” — Martin Ross
Highway bill key to credit extension? The Senate highway bill could prove the key to putting the now-lapsed biodiesel tax credit back on the road. Senate Ag Committee Chairman Debbie Stabenow (DMich.) has unveiled a highway bill amendment that would extend the $1-per-gallon credit, which expired Jan. 1 following an 11th-hour, one-year extension in December 2010. National Biodiesel Board Vice President Anne Steckel argues credit extension would “help end our dangerous vulnerability to the kinds of oil price spikes we’re seeing.” Industry downsizing
occurred in 2010 following nearly a year’s lapse in the credit. Renewable Energy Group (REG) corporate affairs manager Alicia Clancy stressed the industry is better to weather the current tax credit lapse than it was in 2010: The federal Renewable Fuels Standard (RFS2) set a demand-driving 1billion-gallon biodiesel use requirement for 2012. But biodiesel interests simultaneously are seeking credit extension and a 1.28-billiongallon RFS2 target for 2013, Clancy told FarmWeek. She was encouraged by speculation that Senate highway measures
could move this week. “First of all, (Stabenow’s) amendment would need to receive 60 votes, and then that amendment would need to stay attached to the highway bill,” Clancy acknowledged. “And then the highway bill would have to be passed. “We have a lot of steps, but it’s definitely exciting to see there’s still support for the biodiesel tax incentive. It’s great that it’s getting play this early in the year.” REG oversees 105 million gallons of annual biodiesel production in Danville and Seneca. — Martin Ross
FarmWeek Page 6 Monday, March 12, 2012
productioN
Harvest expected to commence this week BY PHIL CORZINE
I’m in Brazil making a pre-harvest visit of our farms with our company merchandising manager, Kent Sorrells. Kent has been busy Phil Corzine the last several days contracting an additional 56,000 bushels of our soon-to-beharvested soybeans at an average price of $11.15 per bushel. One of the sales is to a new buyer in our region, our fourth buyer, and we expect the completion of the North-South railroad to bring even more competition — and better prices. Although our prices are almost $2 per bushel less than Kent is paying at his Raymond,
Ill., elevator, they are still 80 cents per bushel above our average sales price for last year’s crop. Going into harvest, we’re 65 percent sold cash and 20 percent covered with options. We expect harvest on our first farm of 1,360 acres to start this Thursday, and we are looking for above-average yields. Our access to the Bunge facility near this farm has been
complicated by problems with the bridge crossing the Rio Tocantins – lowered allowable weight limits are forcing us to look for buyers on our side of the river. Over the past month, our rains have been very regular — totally the opposite of what farmers in the south of Brazil
have been xperiencing. Harvest should start on the balance of our farms by April 1. Reports indicate prices across much of the north of Brazil are at these same levels, and $11 beans will almost certainly have more farmers looking for pastures to convert to soybeans for the 2012-2013 crop. In mid-April, while our harvest is in full swing, we’ll start converting another 4,450 acres of pasture to get it ready to plant in November. Two trips over the land with a heavy disc on our heavy clay soils will burn a lot of diesel fuel, and at $5 a gallon, our local fuel supplier will be a happy man. Phil Corzine is general manager of South American Soy, a global production management and investment company. His email address is pcorzine @ag page.com.
GROWMARK files suit over Sunrise Ag action
GROWMARK Inc. last week filed a lawsuit in Fulton County circuit court seeking to direct the board of directors of Western Illinois’ Sunrise Ag Service Co. to reverse recent action it took in an effort to leave the GROWMARK System. The suit, filed on behalf of all shareholders of the Virginia, Ill.-based service company, asks the court to direct the Sunrise board to reverse its attempt to restructure the ownership and governance of the company “in violation of the company’s articles of incorporation and bylaws and without shareholder
approval,” according to a GROWMARK news release. Sunrise Ag had planned to ask its shareholders for permission to terminate its affiliation with the GROWMARK system and merge with CHS Inc., a Minnesota based regional cooperative formed by the merger of Cenex and Harvest States. It was reported that the Sunrise leadership had indicated the GROWMARK membership agreement restricts the company’s ability to grow beyond its current service area. Attempts last week to reach the Sunrise Ag board president, Charles Taylor of Virginia, were unsuccessful.
Sunrise serves Cass, Mason, and half of Fulton County and has been affiliated with GROWMARK and Farm Bureau for about 75 years. “That affiliation, which includes GROWMARK holding an ownership interest and voting rights in the company, has existed ever since,” said Dan Kelley, GROWMARK chairman of the board and president. GROWMARK held 100 percent of Sunrise Ag’s issued and outstanding Class B Preferred Stock until last December when the Sunrise board attempted to eliminate GROWMARK’S exclusive ownership of the stock. The action was taken without prior notice to GROWMARK or other shareholders by issuing additional shares of Class B stock to individual directors of Sunrise Ag. That action improperly attempted to transfer control of that class of stock to the Sunrise directors, Kelley said. “GROWMARK’s primary goal in this matter is to preserve and protect the farmers and member cooperatives which make up the FS System,” said Kelley. “We had hoped legal action wouldn’t be necessary, but the Sunrise Ag board has not responded to our repeated requests to rescind its action.”
USDA cuts S. American soy production forecast BY DANIEL GRANT FarmWeek
Soybean prices may continue to strengthen as USDA on Friday cut its soybean production estimates for Argentina and Brazil. Brazilian soybean production currently is forecast to total 68.5 million tons (2.53 billion bushels), down 3.5 million tons (130 million bushels) from the previous forecast. Soybean production in Argentina was projected to total 46.5 million tons (1.72 billion bushels), down 1.5 million FarmWeekNow.com tons (55 million bushels) Listen to analysts’ comments about the latest USDA supfrom the previous forecast. ply-demand report at “This report should be FarmWeekNow.com. friendly to beans,” said Randy Martinson, market analyst with Progressive Ag, during a teleconference hosted by the Minneapolis Grain Exchange. Soy future prices on Friday were well above $13 per bushel. USDA raised its 2011-12 season average price estimate for beans by 30 cents to a range of $11.40 to $12.60. USDA projections on Friday weren’t as friendly for corn. Corn ending stocks were left unchanged at 801 million bushels (soybean stocks also were unchanged at 275 million bushels). Traders generally were looking for a slight decrease in ending stocks of both crops. Meanwhile, USDA increased its estimate for Brazilian corn production by 1 million metric tons (39 million bushels) and left its corn production estimate for Argentina unchanged, despite heat and dryness issues there. “The (corn) stocks are somewhat bearish,” Martinson said. “The trade was looking for a decline.” USDA lowered its season-average price forecast for corn by a dime to a range of $5.90 to $6.50 per bushel. Wheat estimates were supportive of prices as USDA on Friday lowered wheat ending stocks by 20 million bushels to 825 million bushels. U.S. wheat exports were raised 25 million bushels. “The wheat numbers should be somewhat friendly,” Martinson said. “Sales have been fairly brisk.” USDA projected the season-average price for wheat to range from $7.15 to $7.45 per bushel, unchanged from last month. Martinson noted the focus of traders now will turn to upcoming stocks estimates and USDA’s prospective planting report on March 30.
USDA offering rural economic development loans and grants USDA Rural Development is seeking applications for $33 million in loans and $10 million in grants to help rural businesses. In addition, Rural Development has another $46 million in loans available from previous fiscal years. The funding is provided under the Rural Economic Development Loan and Grant (REDLG) program. USDA provides zerointerest loans to local utility cooperatives that then pass through loans to local businesses at zero percent interest. The money must be used for projects that retain and create jobs, upgrade public infrastructure, improve service delivery, or improve the quality of life for area residents and visitors. Grants may be used to create revolving loan programs for local businesses. The maximum amount per project is $1 million for loans and $300,000 for grants. “Our partnership with cooperatives and utilities helps us extend our capacity to help rural Illinois businesses,” said Colleen Callahan, state director for Illinois Rural Development. Currently in Illinois, eight electric co-ops that serve 63 counties are using Rural Development funds to support local business projects. Many Illinois groups have used REDLG funds to support job creation. Earlier this year, the Coles-Moultrie Electric Cooperative of Mattoon received a $740,000 loan and a $100,000 grant to provide financing for the renovation and modernization of the Sarah Bush Lincoln Health Center. Last year the co-op received REDLG funding to help build CCI Redi-Mix’s new plant near Mattoon. The deadline to submit applications is the last business day of each month during fiscal year 2012. Applications must be submitted to the Rural Development state office.
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management
New tools help farmers combat resistant weeds, drought BY DANIEL GRANT FarmWeek
Ag seed and chemical companies this month at the Commodity Classic in Nashville unveiled new product releases and updates designed to help farmers combat two major yield robbers — herbicideresistant weeds and drought. There currently are 13 weed species in 27 states that have confirmed resistance to various types of herbicide. One of the most disturbing trends is increased resistance to glyphosate, the key herbicide used in Roundup Ready systems. About 50 percent of crop farmers in the U.S. deal with glyphosate-resistant weeds each season. “It’s a significant production issue for growers,” said Paul Rea, vice president of U.S. crop protection for BASF. “Close to two-thirds of Illinois is affected by some form of glyphosate resistance.” Glyphosate-resistant pigweed can grow as much as 3 inches per day while waterhemp also has become very difficult for some growers to control, particularly in the southern U.S. Farmers in Georgia last year hired workers to handweed about half the state’s crop acres, at a cost of about $16 million, according to Rea. Yield losses to weeds there still totaled an estimated $110 million. “The total post-emergence era is over. We have to use all the tools in the toolbox (to control weeds),” said Larry Steckel, weed specialist at the University of Tennessee. “Growers in the Midwest can learn from our mistakes (in the South) and be proactive on this.” BASF at the classic unveiled Engenia herbicide, an advanced dicamba formulation that in coming years will help farmers bat-
tle 100 annual broadleaf weeds including glyphosate-resistant Palmer amaranth, waterhemp, and marestail, according to the company. Meanwhile, Monsanto at the event unveiled its new Roundup Ready Xtend Crop System, which is designed to improve weed control and maximize crop yield potential. Roundup Xtend, which has dual modes of action, is an enhanced dicamba and glyphosate herbicide premix that will allow farmers to manage weeds at planting and as an overthe-top option during the season. Bayer CropScience announced the global brand Liberty herbicide will replace Ignite for use on LibertyLink crops this season. Liberty herbicide is a key management tool to battle glyphosate-resistant weeds. Robert Wolf, owner of Wolf Consulting and Research in Mahomet, stressed that improved herbicide application methods also are key to controlling weeds. Wolf Consulting trains applicators through its On Target Application Academy. “It’s hands-on training to get growers in the frame of mind that if they get products on target, they can achieve better weed control and reduce drift,” Wolf said. Elsewhere at Commodity Classic, Pioneer Hi-Bred reported 2011 on-farm trials showed Optimum AQUAmax corn hybrids provided a competitive advantage over other hybrids in water-limited environments and in favorable growing conditions. “Initial data suggests there is less water used per bushel with these products,” said Jeff Schussler, Pioneer senior research manager. The drought-tolerant AQUAmax hybrids were developed with native traits and are expected to be more widely available in coming years.
U of I to mark Teach Ag Day The University of Illinois College of Agricultural, Consumer, and Environmental Sciences will mark National Teach Ag Day Thursday to raise awareness of careers in agricultural education and recognize ag teachers. The U of I Ag Ed Club sponsored activities during last week’s ExplorACES. Club members also sent 511 thank you notes to high school and junior college agricultural educators across the state.
Robert Wolf, former Kansas State University professor who currently owns Wolf Consulting and Research in Mahomet, spotlights water droplets coming out of a sprayer nozzle at the Commodity Classic in Nashville. Wolf works with chemical applicators to help them improve the efficiency and effectiveness of applications in an effort to improve weed control and reduce spray drift. (Photo by Daniel Grant)
FarmWeek Page 8 Monday, March 12, 2012
water
Courts, House deliberate water rights issues BY MARTIN ROSS FarmWeek
Increasingly, water is a hot — and hotly contested — commodity as producers jostle with urban interests and environmentalists for available supplies. Recent actions by the U.S. House and a Texas court highlight efforts to equitably regulate rapidly competing demands for rural water. Western water issues may be coming to a head, but water issues “absolutely” are brewing in the Midwest amid continued urban growth, Illinois Farm Bureau National Legislative Director Adam Nielsen advised. Beyond competing demands, perceived water use for ethanol production has spurred resistance to siting of new plants near communities, including Champaign. The Texas Supreme Court has ruled landowners own
Groundwater Awareness Week good time to have well checked About half the U.S. population receives its drinking water from wells. In addition to many cities in Illinois that get some or all of their drinking water from groundwater sources, almost all rural residents use groundwater. During National Groundwater Awareness Week this week, well users are reminded that spring is a good time to have an annual well checkup before the peak water use season begins. An annual checkup by a qualified water well contractor is the best way to ensure problem-free service and quality. Also, the Illinois State Water Survey Public Service Laboratory (PSL) provides a complete mineral analysis for private well owners for $35. To contact the PSL for a sample test kit, call 217-333-9321. For a bacteriological analysis, contact your local public health department. groundwater under them as part of their land and must be compensated if it is taken for public use. Texas Farm Bureau President Kenneth Dierschke called the ruling “another in a long line of recent successes defending private property rights.” The U.S. House, meanwhile, has voted to cap the amount of water allowed to flow into Cal-
ifornia’s San Francisco Bay for endangered species and restore water deliveries to the San
Joaquin Valley. Valley farmers left 100,000 acres fallow in 2009 because of inadequate water supplies related to three years of drought and water diversion for the federally threatened delta smelt resulted in state and federal officials curtailing irrigation water deliveries. California’s Central Valley Project, a federal program that supplies water for irrigation and municipal use, has been “plagued by fish problems, endangered species problems,” said Chris Scheuring, California Farm Bureau Federation’s (CFBF) natural resources-environmental division managing counsel. CFBF hasn’t taken a formal position on Rep. Devin Nunes’ (R-Calif.) proposal to
restore supplies, but “we’re following it with great interest,” Scheuring told FarmWeek. “The reason we’re in a giant demand crunch is because of the explosive urban growth in the American West, as well as the environmental policy overlay that has been put into place over the last generation to restrict water rights,” he said. Unfortunately, Nunes’ bill may dead-end in the more environmentally oriented Democrat-led Senate. Scheuring reported one key California senator is strongly opposed to the bill, and the White House has threatened to veto it, but suggested it could be used to forge a compromise measure.
Terry Bachtold and John Traub with Livingston County’s Indian Creek Watershed project and Dan Schaefer with the Keep it for the Crop (KIC) by 2025 initiative discussed their respective projects at the recent Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield.
KIC participating farmers aren’t the only ones working to improve water quality. Traub, who farms near Fairbury, described how he has used the Conservation Stewardship Program (CSP) when he wanted to add different conservation practices. Traub serves on the steering commit-
“The key is to make nitrogen (fertilization) a system with multiple applications vs. a one-time application,” Schaefer advised farmers. In the six priority watersheds, participating farmers will be testing in-field trials with nitrogen rates of zero, 50, 100, 150, and 200 pounds per acre. The rate trials will be replicated three times in the field. Schaefer’s goal is to have at least 40 on-farm rate trials. Similar nitrogen management has been shown to increase corn yields an average of 17 bushels per acre, Schaefer told the farmers.
tee of the watershed project. He encouraged farmers to investigate CSP and not to be intimidated. “Once I got into it, it was not as daunting as I first thought,” he said. “As we went through CSP, we chose enhancements that fit our operation easily.” Bachtold of the Livingston County Soil and Water Conservation District said 33 percent of cropland acres are involved with the project within the 51,000-acre watershed. Also within the watershed, most of the livestock farmers have comprehensive nutrient management plans, he said. This year’s on-farm projects will include studies of variable nitrogen rates and late nitrogen application comparisons. For more information about KIC, go online to {www.KIC2025.org}. Information about the Indian Creek Watershed project is at {www.ctic.purdue.edu/IndianCreek/}.
Nutrient management key for watershed projects BY KAY SHIPMAN FarmWeek
Farmers will try different nutrient management strategies in several watershed projects this year, county Farm Bureau leaders learned recently.
Page 9 Monday, March 12, 2012 FarmWeek
from the counties
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UREAU — The Bureau County Ag Fair will host fourth grade students, teachers, and volunteers who will participate in several learning stations. The stations will include dairy, wheat, safety, pork, corn, soybeans, technology, and large and small animals. A goodie bag which includes items from coloring books to pencils will be given to each student. • The Women’s Committee will sponsor a teacher appreciation dinner and a Ag in the Classroom training lesson at 4:30 p.m. Wednesday, March 21, at the Farm Bureau office. Continuing professional development units will be available. Educators can call the Farm Bureau office by Wednesday for reservations or more information. • Farm Bureau will sponsor an informational meeting for the New Zealand and Australia trip at 2 p.m. Thursday, March 29, at the Farm Bureau office. The trip will be Jan. 22-Feb. 7, 2013. • Farm Bureau will sponsor wellness screenings from 8:30 a.m. to 3:30 p.m. Tuesday, April 3, at the Farm Bureau office. Screenings will include carotid arteries, abdominal aortic aneurysm, peripheral artery disease, and osteoporosis. Call 877-732-8258 for an appointment. • A listing for Bureau County residents who are interested in full or part-time agricultural labor has been compiled. Call the Farm Bureau office to obtain the list. HAMPAIGN — Farm Bureau will sponsor a “meet the buyers” seminar from 8:30 a.m. to 5 p.m. Tuesday, March 27, at the Farm Bureau office. Food industry buyers from Illinois will attend to provide an overview of their organization and procurement needs. Call the Farm Bureau office at 217-352-5235 by Thursday, March 22, for reservations or more information. • A “Food Hub” event will be from 7 to 9 p.m. Tuesday, March 27, following the “meet the buyers” seminar at the Farm Bureau office. Food hubs and packing sheds and the financial opportunities they offer will be discussed. Call the Farm Bureau office at 217352-5235 for reservations or more information. • An east central Illinois regional water stakeholder’s conference will be at 8 a.m. Thursday, March 29, at the Holiday Inn, Urbana. The Mahomet aquifer and water supply planning and management will be discussed. Cost is $30. Call Robbie Berg at 217493-7407 by Friday for reservations or more information.
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UMBERLAND — The Women’s Committee will sponsor a coloring contest in celebration of Illinois Farming Month. There will be three groups — 3 to 5 years old; 6 to 8 years old; and 9 to 11 years old, with the top three in each group receiving cash and prizes. Stop by the office to pick up a coloring sheet. • The Women’s Committee will sponsor an amateur photo contest for ages 12 years and older during Illinois Farmers Month. Enter a framed 4 x 6 inch print in one of the three categories — nature and landscapes, animals, and farmrelated miscellaneous. One picture per category will be allowed. Photo must have been taken in Cumberland County within the last three years. The winner in each category will receive a cash prize and have his or her photo on display at the Farm Bureau office for a year. Entry deadline is March 30. Call the Farm Bureau office at 217-849-3031 for more information. • Farm Bureau has 2012 plat books available. Call the Farm Bureau office at 217-840-3031 for more information. EWITT — Farm Bureau will sponsor an “On the Road” seminar at 1:30 p.m. Wednesday at the University of Illinois Extension office, Clinton. Call the Farm Bureau office for more information. • The Young Leaders Harvest for All food drive will be from 10 a.m. to 2 p.m. Saturday at Niemann Market in Farmer City and Save-A-Lot and IGA stores in Clinton. OUGLAS — Farm Bureau will sponsor farmer appreciation breakfasts during the month of March. All will begin at 7:30 a.m. at the following dates and locations: Monday, March 19, Country Junction, Newman; Tuesday, March 20, Deb’s Café, Villa Grove; Wednesday, March 21, R&I, Arthur; Thursday, March 22, Downtown Diner, Tuscola; and Friday, March 23, Dutch Kitchen, Arcola. A description of the field fire readiness program will be given during the breakfasts. UPAGE — Farm Bureau will sponsor the Agricultural Education Expo Wednesday and Thursday at the DuPage County Fairgrounds. Third and fourth grade students and their teachers will learn about the many different aspects of agriculture. Informal classrooms will present a different ingredient for making a pizza, i.e., grains, vegetables, dairy, livestock, and nutrition. Students will receive a slice of pizza.
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DWARDS — Farm Bureau and the Edwards County FFA will sponsor a Farmer’s Share breakfast from 7 to 9 a.m. Saturday at the Farm Bureau office. Displays depicting agriculture will be shown at local banks during the month. FFINGHAM — Farm Bureau will celebrate Illinois Farming Month by sponsoring agricultural quizzes on local radio stations. Multiple choice questions on agriculture will air on WXEF and WKJT radio stations. Winners will receive a $25 gift certificate to a local grocery store or gas station. • The Commodities and Marketing Action Team will sponsor an agricultural outlook meeting at 7 p.m. Monday, March 19, at the Farm bureau office. Kim Holsapple, Total Grain Marketing manager and merchandiser, will be the speaker. Call the Farm Bureau office at 217-342-2103 for reservations or more information. AYETTE — Farm Bureau and Country Financial will sponsor two programs on ATV safety Saturday, March 24, at the Farm Bureau office. The first class will be from 9 to 11 a.m. for fourth through eighth grade students and their parents. The second class will be from noon to 2 p.m. for high school students. Call the Farm Bureau office at 618-283-3276 or visit the website at {www.fayettefb.com} for more information. ULTON — The Women’s Committee will sponsor a “Care-Give” seminar at 6 p.m. Wednesday at the Farm Bureau office. Cheryl Parmenter, Sunset Manor, will share information on home care and services available to care-givers and those they help. Call the Farm Bureau office by Monday (today) at 547-3011 for reservations or more information. • Farm Bureau will host a farmer’s share breakfast from 7 to 10 a.m. Saturday at the Farm Bureau office. Cost is 81 cents. Call the Farm Bureau office for more information. ANE — The Ag Literacy Program and Women’s Committee will sponsor the annual Ag Days Tuesday through Thursday, March 20-22, at Mooseheart Fieldhouse. Approximately 2,000 students will attend to hear presentations from area farmers, agribusiness representatives, and Farm Bureau volunteers on agricultural topics. Students will receive goodie bags filled with farmrelated lessons and activities. EE — The Public Relations Committee will
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sponsor the annual farmer’s share breakfast from 8 to 11 a.m. Saturday at the Loveland Community Building, Dixon. Cost for the pancake and sausage breakfast will be 40 cents, representing the actual amount of income a farmer would receive from the breakfast. • In celebration of Illinois Farming Month, Farm Bureau has Lee County plat books available for $20 each or two for $30 during the month. Call the Farm Bureau office at 8573531 for more information. IVINGSTON — Farm Bureau will sponsor an “On the Road” seminar at 7 p.m. Thursday, March 29, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Trucking laws will be discussed. Call the Farm Bureau office at 815-842-1103 for reservations or more information. • A program — Project PAIL (promoting agriculture in literature) — will have a guest reader read the book “Seed-Soil-Sun” by Cris Peterson to second grade students. • The Women’s Committee will donate two agriculturalrelated children’s books — “Awesome Agriculture: Corn, an A-Z Book” and “Corn in the Story of Agriculture” — to 20 grade school libraries. • An agriculture insert will be provided to local churches. The bulletin gives thanks to our country’s farmers. • Placemats made by students who participated in a poster contest with the theme “Farmers Feed Me” were distributed to area restaurants. • Farm Bureau will host a daily question about agriculture on radio station WJEZ. Each day the winning caller will receive a $25 FS gas card, compliments of Evergreen FS. • The Young Leaders Committee will present a basket “Welcome to the Ag World” to the first baby born at OSF St. James Hospital during March. The basket contains products that come from the farm used in infant care, such as baby powers, oatmeal cereal, soy oil, Baby Basic Puffs, and baby food. •A “One Farmer Feeds 155 People” display will be on the Farm Bureau lawn. The Young Leaders and FFA chapters created a yard display of 155 one-foot plywood people to represent the number of people a farmer feeds. Each chapter painted its “people” the local school colors. • During Illinois Farmers Week, Farm Bureau members
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will receive a 10 percent discount on purchases at the Pontiac Big R store. ARION — Farm Bureau will sponsor a breakfast from 6 to 9 a.m. Wednesday at the Farm Bureau office. Scrambled eggs, biscuits and gravy, orange juice, milk, and coffee will be served. Cost is 50 cents, which represents income received by a farmer for the commodities. No carryouts will be allowed. The Illinois Farm Bureau RFD network will do a remote broadcast during the event. ONROE — An informational meeting for school district residents on proposed school propositions that will be on the March 20 ballot will be at 7 p.m. Tuesday at the Valmeyer School. T. CLAIR — The Young Farmers and Country Financial will sponsor a family farm continuation information meeting will be at 6 p.m. Monday, March 26, at the Farm Bureau office. Dinner will be served. Call the Farm Bureau office at 618-233-6800 by Friday for reservations or more information. ONTGOMERY — The Prime Timers will meet at noon Wednesday, March 21, at the Lion’s Club, Hillsboro. A corned beef and cabbage dinner will be served for $8. Peggy Kessinger, Russell Young, and John Meiner will provide “Old Country” music. Call the Farm Bureau office at 217-532-6171 by Monday, March 19, for reservations or more information. TARK — Stark County Farm Bureau Foundation applications are available at the Farm Bureau office. Applicants must be Stark County Farm Bureau members, dependents of a member, or a Stark County resident pursuing a degree in an agricultural-related field of study. Deadline to return applications is 4:30 p.m. March 31. Call the Farm Bureau office at 286-7481 for more information. NION — Farm Bureau will sponsor a tractor drive at 9 a.m. Saturday, March 24. Proceeds will benefit the scholarship program. Cost is $20. Call the Farm Bureau office at 618833-2125 for more information. ERMILION — The Young Leaders will collect groceries for the Oakwood area food pantry at the Catlin and Oakwood IGA stores the week of March 19. Shoppers may leave donations in marked shopping carts at either location.
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FarmWeek Page 10 Monday, March 12, 2012
profitability
You get one chance at a uniform plant stand BY LANCE RUPPERT
If you are like me, “March Madness” means the excitement of the NCAA basketball tournament. There is something special about watching the magical ride as the pool dwindles from 68 to the champion. Knowing a loss means Lance Ruppert the end of the tournament for your team builds a sense of urgency. The optimists among us know that every team that takes the court
has the opportunity to win it all, regardless of what came earlier in the season. I think farmers also experience their own form of “March Madness.” A sense of urgency and optimism typically come over farmers when the calendar flips to March. There is the feeling that this year’s corn and soybean crops could be the best ever and that when the time comes, we must get the crop planted quickly. Before basketball teams take the court, they put together a well thought-out plan on how to increase their chances of winning the game. Before you
start the planting season, take time to finalize your strategy to increase your chances of growing a winning crop. Revisit the corn hybrids and soybean varieties you have purchased and understand which fields they are best suited for. Understand what technologies you have and the proper Insect Resistance Management (IRM) refuge requirements that go along with growing and preserving those technologies. Prepare your equipment to work at its highest potential by checking your planter and its ability to plant with even spac-
growing season, but you only get one chance to establish a good, uniform stand. Tap into the expertise from your local FS team, which can be invaluable in helping you make the right decisions to get that good start to this year’s crop year. It’s worth a lot to your farming business. Be careful to not let your sense of urgency keep your optimism from coming true.
ing, depth, and proper singulation. You want to plant only once, so getting it right the first time is critical to your success. Consider soil conditions at planting and the ramifications of pushing the envelope too hard when it may be a bit too wet. Planting even a day early can come back and hurt you if root growth is restricted or if stands are marginal due to less than ideal soil conditions. You usually get a second chance to control weeds, and in many cases we can supplement nitrogen throughout the
Lance Ruppert is the FS Seed sales and marketing manager. His e-mail address is lruppert@growmark.com.
“Intentions to plant corn are big,” he said. “It could be 95 million-plus (acres)” if spring weather is conducive to planting. Other analysts, though, questioned whether farmers can achieve the high yield projection. A large boost in planted acreage could draw in less productive acres, they said. And there may not be enough quality corn seed to plant that many acres and achieve high yields, according to Jacquie Voeks of Stewart Peterson Group in Champaign. “As we push to 94 or even 95 million acres, we’ll be bringing in less productive acres,” said Matt Bennett of Total Grain Marketing in Windsor. “When you push this many acres, you’re going to drop the
national yield average.” The projected flush of new corn production still is dependent on weather and yield prospects in South America. Meanwhile, supplies of oldcrop corn remain tight, which has kept basis levels strong in many areas. “Old-crop and new-crop corn are two different commodities,” said Greg Johnson of The Andersons in Champaign, who noted old-crop corn recently traded at a 90cent premium to new-crop production. Analysts at the WILL meeting generally didn’t forecast as much downside price risk for soybeans as they did for corn. USDA last month projected soy acreage this year will be about the same as last year (75 million acres).
Crop farmers advised to protect against downside price risk BY DANIEL GRANT FarmWeek
Market analysts last week at the WILL AM 580 ag outlook meeting in Covington, Ind., advised crop farmers to protect themselves against downside price risk this year. Corn prices easily could fall 50 cents to $1-plus per bushel by this fall if farmers harvest a record crop, according to some analysts. USDA last month projected U.S. farmers this spring will plant 94 million acres of corn, which would be the highest total since 1944. If the weather cooperates and the national yield averages 164 bushels per acre, corn harvest for the first
time ever could top 14 billion bushels. “You need new-crop coverage (for corn),” Wayne Nelson of L and M Commodities in New Market, Ind., told the sell-out crowd of farmers at the WILL meeting. “There’s a chance corn prices could drop 50 cents to $1 if we get what USDA is calling for (record production).” Curt Kimmel of Bates Commodities in Bloomington agreed farmers need to protect themselves from violent price swings. “The No. 1 strategy right now is to stay flexible,” he said. “But I think you need a paper position to keep a floor under you. You need some
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 $33.08-$61.00 $70.17-$79.22 no longer reported This Week 126,294 *Eastern Corn Belt prices picked up at seller’s farm
Weighted Ave. Price $43.78 $73.37 by USDA Last Week 106,215
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $84.85 $80.65 $62.79 $59.68
Change 4.20 3.11
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 125.65 129.80 -4.15 125.00 130.27 -5.27
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 $156.36 156.42 -0.06
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-160 lbs. for 148.25-183.13 $/cwt. (wtd. ave. 156.68); dressed, no sales reported.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 03-01-12 32.6 16.9 31.0 02-23-12 39.4 10.2 28.5 Last year 28.3 21.6 46.0 Season total 907.8 742.4 835.6 Previous season total 1180.6 884.1 850.2 USDA projected total 1275 1000 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
‘Intentions to plant corn are big. It could be 95 million-plus (acres).’ — Dan Zwicker ADM Grain Group
type of support for downside protection.” Analysts did not question USDA’s initial projection for more corn plantings. In fact, Dan Zwicker of ADM Grain Group in Decatur believes it could be low considering the corn/soy ratio recently hit a five-year low, which favors planting more corn.
World meat demand could boost livestock feeding
The jump in meat exports is projected to more than offset the fact that Americans are eating less meat. The per capita consumption of meat in the U.S. since 2006 has declined from 222 pounds to 198 pounds. “Much higher prices at the retail level caused consumers to cut back,” Hurt said. “We’re seeing smaller portion sizes and substitution.” Higher meat prices are the result of a major ‘I’ve never seen a time when the reduction of the world was so competitive for the U.S. livestock herd in recent years resources we have on our farms.’ due in part to surging feed costs. Hurt said the — Chris Hurt livestock indusPurdue University ag economist try has adjusted to the situation and, with higher meat prices, it animals than they did a year ago. can afford to feed corn at prices as high as $6 “I’ve never seen a time when the world was so competitive for the resources we have on our and $7 a bushel. Livestock producers also feed the equivalent of 900 million bushels of corn farms,” said Hurt, who joined the Purdue Ag Economics Department in 1981. “Foreign buy- via the ethanol byproduct distillers grains. “The animal industry has gone through enorers have really found U.S. meat.” mous adjustments,” the economist said. “LiveU.S. meat exports the past five years have stock is fully competitive now with the ethanol doubled for beef and increased by 60 percent industry.” for pork and 25 percent for poultry, the econoHurt believes current feed projections for mist reported. this year could be low, which would continue to This year Hurt projected exports of pork be friendly for old-crop corn prices. — Daniel and broilers could increase 22 percent and 19 Grant percent, respectively.
Profitability in the livestock sector, fueled by surging meat exports, could lead to a small expansion of the U.S. herd this year, according to one economist. Chris Hurt, ag economist at Purdue University, last week at the WILL AM 580 ag outlook meeting in Covington, Ind., projected U.S. farmers this year will feed a half percent more
Page 11 Monday, March 12, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Cents per bu.
ü2011 crop: Nearby corn futures failed to overcome critical resistance early last week. May futures will struggle to sustain gains in the $6.47-$6.53 area. Make catch-up sales when May reaches $6.50. Sales should have been pushed up another 10 percent when May futures closed below $6.40. ü2012 crop: Use rallies above $5.60 on December futures to make catch-up sales. We could add another sale at any time; check the Hotline daily. vFundamentals: The USDA supply/demand report was generally neutral toward corn. 2011/2012 U.S. corn ending stocks were left unchanged at 801 million bushels. The trade was anticipating a small reduction. Global endings stocks also came in above trade expectations at 124.53 million metric tons (mmt). Attention will begin to shift toward the critical USDA March planting intentions report, and everyone is expecting to see a significant increase in corn acres. Talk of Chinese business continues to lurk in the background.
Soybean Strategy
Storm clouds brewing in markets The technical picture that appears to be unfolding on commodity indices is starting to hint that “storm clouds” may be building. And that certainly is fitting with the chart we have shown, the trade weighted index of the U.S. dollar. We’ve been somewhat concerned about how the larger trend for commodity prices might unfold since they failed
to overcome the 62 percent retracement of the 2008 collapse last April. The pattern that has been unfolding on the index since that peak near 370 still includes one more move down before it might come to a conclusion. If it would break though 290 in the process, it would indicate an even more negative picture might be developing. Meanwhile, the U.S. dollar continues to trend upward off the 3-year low it had last April. Until that trend is broken, the dollar looks destined to move into the middle/high 80s again.
ü2011 crop: Soybean prices continue to move higher but may be close to exhausting upside potential. Old-crop prices will have little fundamental support unless weather becomes an issue this summer. ü2012 crop: Use rallies to make catch-up sales. If it wasn’t so early, we’d be willing to sell more at these prices. vFundamentals: The USDA supply/demand report offered little surprise as far as soybeans were concerned. The 2011/2012 U.S. ending stocks were left unchanged at 275 million bushels. Global ending stocks were reduced to 57.3 mmt, but that’s still far from being tight. The reduction was a result of declines in the production forecasts for Brazil and Argentina. Still, total supplies are easily big enough to get the world to our new crop this fall. The reduction in their output places more stress on the need for the U.S. to produce a large crop this summer.
Wheat Strategy
ü2011 crop: The short-
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term trend appears to have turned down. It will take a close above $6.52 in May futures to potentially turn it higher again. Use rallies to $6.50 on Chicago May futures to make catch-up sales. The carry in futures still pays for commercial storage, making spring hedge-to-arrive contracts the best tool, but don’t carry inventories beyond April. ü2012 crop: Use rallies to $6.65 on Chicago July futures to make catch-up sales. Producers who sell 100 percent of their crop off the combine will want to be aggressive in making sales on rallies. New-
crop sales stand at 35 percent. vFundamentals: The USDA supply/demand report offered little support to the wheat market. USDA pegged global ending stocks for 2011/2012 at 209.58 mmt, slightly below trade expectations, but still historically large. U.S. supplies were estimated at 825 million bushels, down 20 million from February, but they are still near burdensome to prices. Going forward, attention will shift toward spring conditions, as both the Northern and Southern Plains have pockets of dryness.
FarmWeek Page 12 Monday, March 12, 2012
perspectives
Your farm’s future depends on your vote As spring arrives, it not only brings with it the promise of a new growing season, but also the opportunity for you to make your voice heard in our electoral process. Your ability and constitutional right to engage in the primary election on March 20 as well as the general election in November is critically important as we in agriculture deal with some very significant issues facing our country and our industry during this calendar year and beyond. The new legislative districts on both the state and national levels present some unique opportunities as candidates find themselves in some highly contested primary races. Your vote is very important when it comes to electing individuals who will represent our organization’s positions on a variety of issues that undoubtedly will impact our future. Matters such as the writing of a new farm bill, securing funding for our infrastructure needs and improvements, avoiding unnecessary and costly regulations around the environment, transportation, and other business regulations — and maybe most MARK important of all, sound GEBHARDS tax policy on both the state and federal levels. There are things in life that are certain, even beyond the fact that the Chicago Cubs will never win a world championship, and one of those certainties is the paying of taxes! Tax policy is, in my opinion, one of the most critical areas of legislation and policy that can potentially impact us in agriculture in a very negative way. We have been fortunate to achieve success on some recent legislation that affects both our federal and state estate tax matters. Those victories were hard-fought battles in both Congress and the General Assembly. Our success was achieved because certain elected officials went to bat for us! Lest we think the battles are over, let me remind you that the federal estate tax exemption for landowners of $5 million per spouse, indexed for inflation, at a 35 percent tax rate, is set to expire at the end of this calendar year. Renewal of this exemption in a successful manner will be determined by whom you put into Congress in November, and that process begins March 20! Sometimes these votes are difficult ones to make for a legislator. Case in point, the Illinois General Assembly’s vote just before Christmas last year on Senate Bill 397. That bill provided some incentives and breaks for certain companies in Illinois and it has been a highly criticized vote. While one can argue the soundness of whether it properly addressed a strong business climate in Illinois, it did do some very important things for our tax policy as it impacts agriculture. Included in the legislation was an increase in the Illinois estate tax exemption for individuals from $2 million to $3.5 million this year and to $4 million next year and beyond. Even beyond the estate tax issue was the fact that the bill extended the state sales tax breaks for the renewable fuels industry through 2018 and created an independent board that will reform the way taxes are protested in Illinois. Our opportunity to achieve this increased exemption was an extremely limited, rare opportunity. Had it not been for the Illinois Farm Bureau members and staff leaning on legislators to support the bill, I seriously question its passage. Plain and simple, legislators supported our position because of your involvement, calls, and past support. Some of those legislators need to know that you are still there on March 20 and in November! If they supported us, thank them and support them! Tax policy will continue to be a one of several major issues that face us on the state and federal levels. We need to know that we have people in office who will support our positions. The first step is to vote March 20. Second, engage with the candidates on these tax issues during the campaign as we head toward November. Last but not least, respond to our calls to action when they come later this year as the battle begins to renew our federal estate tax exemption. After all, all that is at stake is your family farm’s future! Mark Gebhards is executive director of the Illinois Farm Bureau governmental affairs and commodities division. His e-mail address is gebhards@ilfb.org.
IFB offers members election information Farm Bureau members will find infor mation related to the upcoming election on the Illinois Farm Bureau website {www.ilfb.org}. Look on the right side under the “Quick Picks” icon and click on
“Election information.” Vo t e r s a l s o m a y c a l l o r v i s i t their local election authorities with any questions, especially those w h o d o n ’ t h ave o r u s e t h e I n t e r net.
U.S. is moving toward a biobased economy Today, a college football player may just as likely get a facemask full of soy turf as natural grass. In the past five years, industrial uses of U.S. soy have increased 50 percent. During that time, many major college and professional sports programs have SCHERRIE adopted a soyGIAMANCO based artificial turf over labor-intensive grass or the petroleum-based turfs of yesteryear. This is, in essence, how a biobased economy takes shape. There are more than 3,000 companies producing more than 20,000 bio-products made from grasses, grains, oilseeds, and agricultural waste, rather than petroleum. The products are common things such as detergent, bed linens, ink, fertilizer, and disposable cutlery. These cutting-edge innovations will assist us in breaking our dependence on foreign oil while helping to build a new industry of competitively priced, American-grown and made products. In fact, making these items employs about 100,000 Americans — many of them in rural communities — by fusing two important economic engines: agriculture and manufacturing. At USDA, we think there is incredible potential for this industry to grow, innovate, and create economic opportunity. So we have taken action to expand markets for these products. One year ago, we created a biobased product label that will soon be featured on more than 500 products you may buy at a local grocery store or pharmacy (see graphic). We hope the label, which contains the biobased content percentage (57), becomes a powerful image of American ingenuity, much like our USDA organic label. Ten years have passed since USDA launched the organic label. Today, you see it on thousands of fruits, vegeta-
bles, meats, or other goods at the local market, and more than two-thirds of Americans buy organic. Biobased products may hold even greater potential. Recently, President Obama announced steps to encourage the federal government to dramatically increase our purchases of biobased products. Biobased cleaning goods and construction materials such as carpet pads and insulation are grown and made in America, as are lubricants and paints and oils and paint removers used in aircraft, motor vehicles, and by the military. As the federal government encourages use of these costcompetitive alternatives, it will mean more contracts for American businesses and more American manufacturers creating good, middle-class jobs. Of course, these options exist thanks to the ability of our farmers to drive many other sectors of the economy, including manufacturing and transportation. Over several decades now, U.S. agriculture has become the second most-productive sector of our economy. American farmers apply the latest in technology, achieve a nearly unparalleled level of
productivity, contribute to a homegrown supply of renewable energy, and are responsible for one out of 12 jobs here in the United States. Our farmers feed people around the globe and yet still produce enough food to keep our grocery bills among the lowest in the world. In other words, no challenge is too great for America’s farmers. As we lay the foundation for an economy that is built to last, this effort to establish a biobased economy will create more middle-class jobs, drive innovation, reduce our dependence on foreign oil, and support incomes for farmers. Scherrie Giamanco is state executive director of the Illinois Farm Service Agency. Her e-mail address is scherrie.giamanco@il.usda.gov.