Farmweek march 16, 2015

Farmers have only two weeks to make farm bill decisions. Plan to visit your local FSA office. page 4

Many ag leaders express frustration with a Senate bill aimed at ending corn ethanol mandates. page 5

Fire up the grill! Increasing pork production means plentiful meat supplies at lower prices. page 7

Referendum passes; state beef producers approve checkoff Monday, March 16, 2015

FARMING CAJUN-STYLE

Two sections Volume 43, No. 11

Efforts to market and promote Illinois beef, along with vital research, will expand in a big way in coming months. Beef producers around the state in recent weeks resoundingly approved a referendum to establish a voluntary, state beef checkoff. The referendum, initiated by the Illinois Beef Association (IBA) and carried out by the Illinois Department of Agriculture, received 1,060 votes from producers in all seven districts during a twoweek voting window last month. A vast majority (934) of ballots were “yes” votes, with just 123 “no” votes and three spoiled ballots. The referendum required a simAlan Adams ple majority to pass. “I’m so pleased we had the turnout we did and the percentage (88 percent in favor) that we did,” said Alan Adams, IBA president and cattle producer from Sandwich. “It reflects well on our directors and staff. To me, it bodes well for the future.” The voluntary checkoff will collect 50 cents per head. All of the money will be used for beef promotion and marketing efforts in Illinois. The national checkoff of $1 per head currently generates about $300,000 in Illinois after the money gets divided. The national funds, however, can’t be used for efforts such as creating a state brand of beef. “We went out with a clear message that the money will stay in Illinois and this is about Illinois beef,” Adams said.

BY DANIEL GRANT FarmWeek

“I think that resonates with people.” IBA also set up a Vote Yes Coalition that Adams believes spread the message and helped generate such a large voter turnout. The Illinois Farm Bureau board, along with numerous other commodity organizations, supported the effort. The state checkoff will be collected in a similar fashion as the national checkoff at sales barns, slaughter facilities and meat processors, among other sale destinations. Adams believes collections of the state checkoff could begin this summer. “There’s two things that have to go on now,” Adams said. “We need a public campaign to make people aware (the checkoff passed) and work with people collecting that money to put a reasonable system in place. “The next thing is checkoff directors need to start thinking about the most efficient uses of the money,” he continued. “It will be a whole new budget they have to look at. It won’t be commingled with the national money.” The state checkoff allows IBA to cooperate with local processors and markets to possibly create a state brand. It also could enhance digital marketing efforts to geographical areas, and boost educational and research opportunities for the beef industry. Listen to an interview about referendum results at {FarmWeekNow.com}.

U.S. Reps. Randy Hultgren, and Aaron Schock, R-Ill., joined 30 fellow U.S. House members in co-sponsoring a repeal of the federal estate tax. However, more support will be needed to pass HR 1105, the Death Tax Repeal Act of 2015. Illinois Farm Bureau and the American Farm Bureau Federation are working to round up more co-sponsors. An identical bill introduced in 2013 drew support from more than half the House of Representatives — 221 members — but never received a floor vote. IFB members should visit the Legislative Action Center at {www.ilfb.org} and ask their representative to co-sponsor the legislation, and vote for the bill. “Assuming the bill again picks up numerous co-sponsors, it is expected to move quickly,” said Adam Nielsen, IFB

Ask representative to co-sponsor death tax repeal national legislation and policy development director. “The House Ways and Means Committee Select Revenues Subcommittee has scheduled a hearing for Wednesday, and it is possible the House Ways and Means Committee will mark up the bill in time for a vote near the April 15 tax filing deadline.” While many farmers have benefited from congressional action that increased the estate tax exemption to $5 million indexed for inflation, the exemption has not caught up with the increase in farmland values during the past several years. The most recent Illinois Society of Professional Farm Managers and Rural Appraisers report on the value of farmland with excellent productivity ranged from $9,500 per acre in southern Illinois to $16,500 per acre in central Illinois.

Louisiana farmer Brandon Gravois shows a flat of tobacco plants to visiting Illinois Farm Bureau Young Leaders (YLs). Thirty-five YLs participated in the recent YL Ag Industry Tour of Louisiana. See story on page 2. (Photo by Renee Deuth, IFB membership and program manager)

That means it takes just 329 acres of the most productive central Illinois farmland and 571 acres of the most productive southern Illinois farmland to reach the current estate tax exemption level. The 2012 U.S. Census of Agriculture puts the average Illinois farm at 476 acres. In addition, roughly 90 percent of the value of family-owned farms exists as illiquid assets, such as land, buildings and equipment. That leaves surviving family members few options beyond selling off farm assets to settle estate tax liability. Nielsen noted IFB members joining the Leaders to Washington trip March 23-25 will discuss the estate tax exemption repeal with House leaders. He expects a companion Senate bill to be introduced by Sen. John Thune, R-S.D. www.facebook.com/illfarmbureau

Periodicals: Time Valued

FarmWeek • Page 2 • Monday, March 16, 2015

DES MOINES SUES COUNTIES — The Des Moines Board of Water Works Trustees voted last week to sue three county boards of supervisors for discharging nitrates into Raccoon River. The anticipated lawsuit cites supervisors in Sac, Buena Vista and Calhoun counties for failing to obtain a National Pollutant Discharge Elimination System (NPDES) permit in violation of the Clean Water Act. “The board of trustees has a responsibility to safeguard the water supply and protect our ratepayers’ financial interest. If it takes going to court to enforce laws written to protect citizen interests, so be it, and if it means working to develop new methods of problem solving collaboration, even better,” said Graham Gillette, Board of Water Works Trustees chair. A coalition of Iowa agriculture groups, including the Iowa Farm Bureau Federation, said the action “reveals a startling disconnect from the scope and complexity of nonpoint water issues. It risks slowing the momentum of the nationally recognized Iowa Nutrient Reduction Strategy implemented with bipartisan legislative support in 2013.”

Quick Takes

MAHOMET AQUIFER DECLARED SOLE SOURCE — The U.S. Environmental Protection Agency (EPA) designated a portion of the Mahomet Aquifer system as a sole source aquifer last week. The aquifer system, an underground layer of water-bearing sand and gravel flowing through 14 east central Illinois counties, serves as the sole drinking water source for 120 public water systems and thousands of rural wells. The aquifer system provides about 58 million gallons of drinking water to nearly 500,000 people. EPA held public hearings and collected public comments last year regarding the designation. It authorizes EPA to review projects receiving federal financial assistance to assess potential for contamination of the aquifer system that would create a significant hazard to public health.

HALL, TONSAGER CONFIRMED FOR FCA BOARD — Jeff Hall of Kentucky and Dallas Tonsager of South Dakota join the Farm Credit Administration (FCA) Board following Senate confirmation. FCA regulates and examines banks, associations and other entities within the Farm Credit System, including the Federal Agricultural Mortgage Corporation (Farmer Mac). A threeperson board governs the FCA with members serving sixyear terms. They may not be reappointed after serving full terms. Hall worked for the Kentucky Farm Bureau and served as legislative assistant to Majority Leader Sen. Mitch McConnell, R-Ky. Later, he served as assistant to the University of Kentucky Agriculture College dean and Kentucky Farm Service Agency executive director. Tonsager previously served on the FCA board from 2004 to 2009 until he was appointed USDA undersecretary for rural development. He served as South Dakota Farmers Union president from 1987 to 1993.

Four Illinois farmers have been selected as 2015 Master Farmers by Prairie Farmer magazine. Award recipients include Bill Christ of Metamora, Randy DeSutter of Woodhull, Don Schrader of Waterloo and John Werries of Chapin. Farmers, agribusiness leaders and agricultural Extension specialists from throughout the state nominate candidates. The award recognizes people who make important contributions to Illinois agriculture and their local communities. Since the program began in 1925, more than 300 Illinois people have been named Master Farmer or Honorary Master Farmer. BILL CHRIST Ask Bill Christ about the biggest lesson he’s learned in his farming career, and he doesn’t miss a beat: “Hard work and perseverance.” It would’ve been easy to throw in the towel in the early ‘80s, he said. But Christ and his wife, Sandy, were determined to do whatever they could to make Bill Christ sure their Metamora farm survived. A local insurance agency management position opened up at that time. Christ was encouraged to take it with assurances that he could both farm and sell insurance. Thirty years later, he’s still managing the COUNTRY Financial office in Metamora and running the farming operation, which has grown to include 1,500 acres of corn, soybeans, wheat, grapes and a small herd of registered Hereford cattle. The Christ family also operates a trucking company with another local farmer, CW Logistics, which delivers seed, and hauls grain and fertilizer for local farmers.

BY DANIEL GRANT FarmWeek

2015 Master Farmers honored RANDY DESUTTER Some might argue that joining the family farm in 1979 wasn’t ideal timing. Randy DeSutter firmly agrees. “It was pretty tough, when interest rates were high and land was worth half what you paid for it. Grain prices were terrible,” said DeSutter. “Anybody that survived the ‘80s did pretty well, in my book.” DeSutter and his wife, Suzanne, farm together and have two children, Matthew and Kristin. DeSutter farms with his brothers, Mike and Jim (who also works as a bank examiner), and with his son, Matthew, and Jim’s son, Drew. Randy’s father, Maurice DeSutter, was named a Master Farmer in 1982 and still Randy DeSutter helps in the operation. Until 1994, the DeSutters fed 1,000 head of cattle a year. Until 1995, they finished 2,000 to 4,000 head of feeder pigs a year. They exited both businesses due to aging facilities and location. DeSutter served on the Knox County Board for nine years. He’s represented Illinois agriculture in three commodities (beef, corn and soybeans) and has worked at the national level on behalf of both beef and soybeans. DON SCHRADER Whether he’s playing Santa Claus or serving as president of the Monroe County Fair, Waterloo farmer Don Schrader is truly a man of the community. The Schrader farm, primarily a cash grain operation, turned 150 years old last year. Schrader and his wife, Karen, purchased the farm from his parents, Victor and Esther, in 1987. Don represents the fifth generation to farm the ground. After Karen’s father died in 1976, her mom began renting out the farm. Things continued

Ag tour takes Young Leaders down on the bayou The Illinois Farm Bureau Young Leaders Ag Industry Tour took on a Cajun flavor this year as 35 participants toured Louisiana March 3-8. Tour stops included the Greater Baton Rouge Port, Associated Grocers, Louis Dreyfus Commodities, a pecan shelling facility, cotton gin and a crawfish farm. “We got to see a lot of different things,” said Christine Smith, a Young Leader from Steeleville (Randolph County). “We toured a crawfish farm, went on a swamp tour where we saw a few small alligators, and went to ADM and watched them load a vessel on its way to China.” Smith and her husband, Jacob, who produce corn, soybeans, wheat, hay and beef cattle, now have participated in five of the Young Leader tours, and learned something different and met new people on each one. “It’s really enjoyable,” said Smith, who also works off the farm as a bank loan clerk. “You get to experience how farmers in other parts of the country operate and the obstacles they encounter. I feel every one of the trips is unique in its own way.” Smith, for example, noted that Illinois farmers are accustomed to seeing barges loaded with grain. But she found it interesting to see the process of unloading barges onto ocean-going vessels as the grain makes its way to the export market. Many Young Leaders on the trip also had not seen a cotton gin prior to the tour. “The people we visited were great explaining how things work (at the gin) and how each piece of equipment works,” said Smith, a YL member since 2002 and former chair of the Randolph County Young Leader Committee. Smith highly recommends Young Leaders get involved in activities and consider participating in a future Ag Industry Tour. “If anybody has a chance to go on one of these Young Leader tours, it’s definitely something I’d recommend,” she added.

in that manner until the mid2000s. Then, two of Karen’s nephews, Andy and Doug Sax, started talking about working the land in their spare time. They each have their own construction businesses. “The boys started throwing hints my way Don Schrader that they might want to start farming, but they needed some help,” Don remembers. “I’m glad they asked me to be part of this. And their grandma is happy to have family back working the ground.” JOHN WERRIES From conservation farming to community involvement, if something is worth doing, Chapin farmer John Werries does it right. The Werries family first put down roots in what is now northwest Morgan County in the late 1800s. Today, WerJohn Werries ries and son, Dean, maintain a corn-intensive, conservation-oriented operation. Father and son strip-till continuous corn on 3,500 acres. This is their third year in cover crops. Werries and his wife, Ruth, have three children and 11 grandchildren. In addition to Dean, their oldest son, Dan, serves as global finance director for Dow Chemical Company. Son, Curt, serves as a Quincy police officer. The massive conservation changes Werries has made are indicative of a man working hard to pass the farm onto the next generation.

(ISSN0197-6680) Vol. 43 No. 11 March 16, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau.

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

STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso (morso@ilfb.org) Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

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Trade awaits March 31 planting estimates; more beans expected Page 3 • Monday, March 16, 2015 • FarmWeek

BY DANIEL GRANT FarmWeek

The favorable price relationship for beans compared to corn eroded in recent months. But analysts still look for farmers to plant more beans and fewer corn acres this season. USDA releases its much anticipated prospective plantings report March 31. “We expect more beans than USDA projected (at its Ag Outlook Forum last

Q&A:

FarmWeek: As minority spokesman, what tone do you hope pervades the Agriculture and Conservation Committee this session? Sen. Neil Anderson: The members of the committee are, of course, going to have different views on many issues, but we all have one thing in common — we have sworn a solemn oath to serve the people of the State of Illinois. This spring we have in front of us an amazing opportunity for a new era of bipartisan cooperation in state government. I hope that the tone of the committee is one of collaboration and cooperation to address the issues. FarmWeek: How do you plan to apply your knowledge of agriculture and conservation to your work as minority spokesman? Anderson: Growing up, I worked on farms, and because of that, I have a very real and personal understanding of some of the hardships Illinois farmers face. I think that perspective, as well as representing a district with a huge agricultural base and a major agricultural employer like John Deere, will help me as I serve on this committee. FarmWeek: What are some issues that may come before the committee? What are some issues that may impact agriculture during this session? Anderson: As with every area of Illinois government, the

Illinois Senate Ag/Conservation Committee minority spokesman

month),” said Vince Reincke, a market analyst with Strategic Farm Marketing. “In general, we’re in the 86 million acre camp.” USDA last month set baseline projections for planted acreage at 83.5 million acres of beans (down 200,000 from last year) and 89 million acres of corn (down 1.6 million acres). Analysts last week at the WILL Ag Outlook Conference estimated bean plantings could total anywhere from 85.5 mil-

lion to 87 million-plus acres. The range of estimates wasn’t as wide for corn. But

Visit FarmWeekNow.com for more details on Allendale’s forecast and other acreage trends for 2015.

FarmWeekNow.com

Kay Shipman, legislative affairs editor, submitted questions to Sen. Anderson. FarmWeek is profiling the Democrat and Republican leadership of the Illinois Senate and House Agriculture and Conservation Committees.

state budget is likely to be a major concern. Other issues like labeling requirements for animal feed, GMO labeling and bobcat hunting are just a few of the issues that may come before the Senate Agriculture and Conservation Committee this spring. Any bill that comes before the Senate Agriculture Committee has the potential to impact Illinois farmers. As responsible members of the committee, our job is to make sure that we’re only approving bills that will help the ag community. As the state’s foremost industry, agriculture is an integral part of Illinois’ economy. I want to help you with the important job you do. FarmWeek: What message do you have for Illinois farmers and the state’s agriculture industry? How should farmers work with the General Assembly? Anderson: We’re here to help! Illinois and the Midwest are the breadbasket of America, which makes agriculture an incredibly important issue to the future of this state. Keeping that in mind, I hope that Illinois’ farmers and the agricultural community speak up when issues are coming to our committee that will impact them. My door is always open.

Farmers should keep their eyes on the market and consider making crop sales on any small rallies in the months ahead. That was a key message a number of market analysts conveyed to farmers last week at the 26th WILL Ag Outlook meeting. The popular event drew a standing room only crowd at The Beef House conference center in Covington, Ind. “I think, in the big picture, prices are heading lower,” said Greg Johnson of The Andersons. “You want to get some beans sold (on any rallies). I think there’s more downside than upside in that market.” USDA last week in its monthly supply and demand report left soybean stocks unchanged at a hefty 385 million bushels. USDA pegged corn stocks at 1.77 billion

Analysts: Large stocks could limit crop rallies bushels, which was on the low end of trade expectations. Ending stocks of soybeans, despite record export sales, remain at an eight-year high. “If we have larger bean acres and favorable weather (this spring), we could see bean prices go lower,” said Curt Kimmel of Bates Commodities. “The last time stocks were this large was 2005-06.” Meanwhile, some analysts believe corn still in the bin as of March 1 could be near a record 7.7 billion bushels. “There’s still quite a bit of corn left to move,” said Aaron Curtis of Mid-Co Commodities. “A lot of producers want $4 cash. But you’ve got to be cautious. Typically, when farmers hold this much grain, the market has a hard time rallying.” The good news for many farmers in the “I” states

most analysts at the conference believe corn acres will be close to USDA’s estimate or slightly lower. “I think corn acres will back off,” said Aaron Curtis, an analyst with Mid-Co Commodities. “Only 30 percent of anhydrous ammonia was put on last fall (in some areas of

Illinois). We need the weather to shape up to plant these (corn) acres.” Allendale, Inc. in McHenry last week released the results of its 26th farmer planting survey, which also favors more beans and fewer corn acres than projected by USDA. The survey of farmers in 30 states projects corn plantings this spring will total 88.5 million acres, down 2.1 million acres from last year, with a record 86 million acres of beans, up 2.35 million acres from 2014. Analysts believe corn acres will slip due in part to

high input costs. “With input prices where they’re at, margins are pretty tight,” said Matt Bennett of Channel Seeds. “There probably will be a lot of beans and spring wheat in the Upper Midwest.” Allendale’s survey projects spring wheat acres this year will grow by 1.5 million acres from a year ago. Some analysts also believe farmers could plant more grain sorghum in the west and more soybeans and cotton in the south. Most don’t look for a major acreage shift in the heart of the Midwest.

Get to know Neil Anderson Job: Republican representing the 36th Senate District Age: 32 Years served: Sworn in in January Background: Firefighter/paramedic lives in Rock Island with his wife, Brandi, and two children Outdoor connection: Loves camping with his family and grew up working on farms Neil Anderson

Wayne Nelson, left, market analyst with L&M Commodities, discusses soybean prices during the 26th WILL Ag Outlook Conference in Covington, Ind. Nelson has been a featured analyst at all 26 of the events. He was flanked by fellow analysts Curt Kimmel of Bates Commodities, middle, and Mike Zuzolo of Global Commodity Analytics & Consulting, right. (Photo by Daniel Grant)

The U.S. Food and Drug Administration (FDA) found hardly any traces of drugs contaminating milk in a study of nearly 2,000 dairy farms. William Flynn, the FDA deputy director for science policy who led the study, said the results should assure consumers that milk is safe. Consumer concern over antibiotics in milk prompted FDA to launch the study in 2012. The FDA tested raw milk samples for 31 drugs, mostly antibiotics, and found less than 1 percent contained illegal drug residue. Antibiotics and other drugs are used to keep

FDA finds most milk clear of antibiotics

revolves around the volume of crops they have to sell. Illinois’ record yields last fall, 200 bushels per acre for corn and 56 bushels for beans, were tops in the country. “Look at the yields we had last year. Marketing mistakes were probably covered up by big yields,” said Matt Bennett of Channel Seeds. “Don’t let this thing get away from you (in terms of marketing remaining bushels). You’ve got profits on the table.” The tone of the outlook wasn’t completely bearish, though. Many analysts at the event believe the crop markets could rally in the months ahead due to strong demand and any weather issues during planting. USDA last week raised its estimate for corn exports and feed/residual use by a combined 100 million bushels. “I think we could get a little spring rally, but you can’t be too bullish,” Curtis said. “If we get a 20 to 25 cent (corn) rally, reward the market and move on.” Mike Zuzolo of Global Commodity Analytics and Consulting also urged farmers to purchase high levels of crop insurance to help offset the volatile outlook. USDA last week projected average farm prices to range between $5.90 to $6.10 for wheat, $9.45 and $10.95 for beans and $3.50 to $3.90 for corn before possibly sliding later this year if farmers enjoy another big harvest. — Daniel Grant

dairy cows healthy; their presence in the final milk product are allowed in low levels by food regulators. The FDA plans to use the results of this study to further reduce drug contamination in the supply chain. The study found 11 samples from farmers with previous violations, and four samples from the control group, contained illegal residues of drugs that are not approved for use on dairy cows. Because the study was blind, however, no violations will be issued. The milk industry supported the study, according to the Associated Press.

FarmWeek • Page 4 • Monday, March 16, 2015

Time to finish farm bill sign-up

BY JOANIE STIERS FarmWeek

Farmers who haven’t should make a point to cross “farm bill sign-ups” off their to-do lists. “Get in there and sign up,” said Gary Schnitkey, a University of Illinois agricultural economist. “There is not much that’s going to change between now and the end of the month. You have all the information you need.” Last week’s release of USDA’s newest prediction for the 2014-15 Market Year Average (MYA) price refreshes estimated payments for Agriculture Risk Coverage County (ARC-CO) and Price Loss Coverage (PLC). ARC-CO and PLC represent two of the farm bill’s commodity program choices. The agency increased corn and wheat MYA prices slightly to $3.70 and $6, respectively. Soybeans remain ‘For corn ... you’re unchanged from last month at $10.20. likely looking at Until March 31, the 2014 farm bill allows an opportuni- ARC-CO making higher payments.’ ty to update base acres and yield history and also elect commodity programs. If no — Gary Schnitkey changes are made to yield hisU of I ag economist tory or base acres, the farm maintains its current yield and base, according to USDA. Farms on which producers fail to make a program election will default to PLC for the length of the farm bill. Any 2014 payments would be forfeited. “For corn, if you’re trying to choose between ARC-CO and PLC, you’re likely looking at ARC-CO making higher payments,” Schnitkey said. ARC-CO also looks more attractive for soybeans, unless prices fall to $7.80 and stay there a while, he said. Wheat is a tossup with PLC slightly more attractive. The Farmdoc Farm Bill Toolbox is available at {farmbilltool box.farmdoc.illinois.edu} for anyone with specific questions or those who want to run calculations before the March 31 deadline. The online toolbox earned a peak of 2 million visits in February with 1.8 million visits in January, Schnitkey said. Statistics indicate the site remains on track for similar hits this month. Farmdoc’s posting of estimated 2014 ARC-CO and PLC payments ranked as the most visited page of the online tool since its launch in August. The article published after the release of county yield data from the National Agricultural Statistics Service last month. The yield information allowed a more precise estimate for ARC-CO payments before program elections end.

Tight land inventory could support values

BY DANIEL GRANT FarmWeek

Ten percent of the PI 111 value calculated to be $20.33 per acre. After subtracting the $5 disFarmland owners, especially those whose count, every certified cropland value increased soils have lower productivity indices, may antici- by about $15.33. pate increases in certified farmland values, Based on current five-year running averages reflecting 2013 changes to the state farmland of interest rates, commodity prices and nonland assessment law. production costs, Matherly estimated 2016 cerBrenda Matherly, Illinois Farm Bureau assistified values for all soil PIs may increase by tant director of local government, discussed Illi- about $21.86, or 10 percent of $218.65. Those nois farmland 2016 certified property assessvalues will be ment during the used for 2017 ‘That’s a great question to ask your assessment recent Governfor assessor. How much of the county’s taxes payable in mental Affairs Leadership Con- total value comes from farmland.’ 2018. ference. She cautioned In 2013, the that changes in General Assem— Brenda Matherly commodity Illinois Farm Bureau assistant director of local government bly amended prices and input state law that costs will impact now limits changes in certified farmland values values, and interest rate changes may make the to within 10 percent of the certified assessed largest impact. value of the state’s median soil productivity Matherly encouraged farmland owners to index (PI), which is 111. make sure their land uses, such as cropland and Matherly reminded farmland owners that data permanent pasture, are correctly identified for used to calculate farmland assessments comes assessment purposes. from five-year running averages to alleviate large She also urged them to consider asking counyear-to-year swings. For example, 2015 assessty officials about current tax rates, especially ments incorporated data from 2008 through 2013. when farmland values increase. “And the assessed value lags two years behind to “As we see more money come in as farmland allow data collection and use,” she added. values go up in some areas — if the area has a Matherly outlined data from 2008-2013 are lot of equalized assessed value from cropland, used for 2014 calculations of 2015 assessments this may allow the tax rate to go down,” Mathfor taxes payable in 2016. erly said. “That’s a great question to ask your For the 2015 assessment year only, state law- assessor. How much of the county’s total value makers allowed each value to be reduced by $5. comes from farmland.”

BY KAY SHIPMAN FarmWeek

Certified cropland values expected to reflect changes

Farmland values in recent months reflect the drop in commodity prices. The Federal Reserve Bank of Chicago reports the value of “good” farmland in the Midwest declined 3 percent in 2014, marking the first yearly decline since 1986. “The corn price is 54 percent lower than it was two years ago,” Murray Wise, president and CEO of Murray Wise Associates of Champaign, said last week at the WILL Ag Outlook Conference. “It’s having a major, negative impact (on the farmland market).” Yet, the value of some excellent farmland continues to hold strong and even increased in some areas so far this year compared to last year, according to Wise. He believes some farmers are willing to accept low returns in order to bid up the chance to farm excellent quality farmland. Supply and demand factors also might keep farmland values from a collapse. “I’ve been in the business 39 years and there’s never (in that time) been less land for sale than there is today,” Wise said. “There’s tremendous reluctance to sell. (As a result), there’s a dramatically lower inventory.” Farmland owners may not want to sell now due to a lack of alternative investments. Meanwhile, some fund investors remain on the sideline as a 2.5 to 3 percent return

From left, Murray Wise, chairman/CEO of Murray Wise Associates in Champaign, discusses land values with Ann Nicholas of Otterbein, Ind., and Zach Cain of Darlington, Ind., during the WILL Ag Outlook Conference. (Photo by Daniel Grant)

Listen to Murray Wise’s comments about the Illinois farmland market at FarmWeekNow.com.

FarmWeekNow.com

on farmland offers little incentive to invest when the cost of operation on those investments could be 1.5 percent, leaving just a 1 to 1.5 percent return. “The farmer continues to dominate the marketplace,” said Wise, who believes farmers continue to buy anywhere from 70 to 85 percent of farmland. Farmers, however, experienced a significant tightening of their margins last year and need to readjust cash rents, according to Wise. “I believe cash rents need more of an adjustment,” he said. “If we have $3.25 corn by

the fall, there will be some pain in rural America.” Looking ahead, Wise doesn’t foresee a major collapse of the farmland market, which currently features prices in the $8,000 to $12,000 per acre range in the Midwest. “We’re not in a bubble,” he said. “The amount of land coming to the marketplace will be minimal (the next few years). It may be a driving force to keep land prices near where they’re at.” The Illinois Society of Professional Farm Managers and Rural Appraisers on Thursday will release its annual farm values report at the Illinois Land Values Conference in Bloomington. For more information about that event, visit the website {ispfmra.org}.

Fertilizer prices remain high Farmers who plan to significantly cut fertilizer applications to save on input costs this spring may want to think twice. Soil tests dating back to last summer reveal the amount of nitrogen available for plants was depleted on many fields as farmers harvested consecutive record crops. “This year is different,” said Howard Brown, GROWMARK director of nutrient management and environmental sustainability. “The soil profile is somewhat depleted” of nitrogen available for plant uptake.

BY DANIEL GRANT FarmWeek

Brown urges farmers to maximize input utilization this season Brown discussed the situation last week at the FS spring ag roundtable in Monmouth. Midwest Bank of Western Illinois and WRAM-AM co-hosted the event. Farmers don’t necessarily need to apply more nitrogen this year to fields with depleted levels. Brown instead advises farmers to maximize input utilization and spread their risk with Howard Brown split applications. “Farmers should manage environmental risk like they manage economic risk,” he said. “Spread the nitrogen out over time.” Brown advises farmers broadcast a preplant source of nitrogen. That should be followed up with a sidedress application later in the season. The strategy should provide nitrogen to crops when needed and reduce N losses. “We need to maximize input utilization, and we need to minimize the environmental impact,” Brown said. “If we’re going to sustain higher yields to feed a growing population, we have to be prudent.” Brown suggests farmers work with FS or other crop specialists in their

Page 5 • Monday, March 16, 2015 • FarmWeek

The development of the ethanol and biodiesel industries through the Renewable Fuels Standards (RFS) certainly benefits farmers via increased demand for their crops. But it also lowers demand for imported fossil fuels, reduces air pollution and generates millions of dollars in rural communities via jobs and an increased tax base. So, the fact that a bill recently introduced in the Senate calls for the elimination of corn ethanol mandates in the RFS frustrates many ag leaders and once again puts them on the defensive. Ag leaders discussed the situation last week at the annual spring ag roundtable in Monmouth. FS, the Midwest Bank of Western Illinois and WRAM-AM hosted the event. “Why people are trying to do away with the RFS is a mystery to me,” said Ray Defenbaugh, president and CEO of Big River Resources, an ethanol facility in West Burlington, Iowa. “Ethanol is doing its job.” Since 2004, Big River

BY DANIEL GRANT FarmWeek

Illinois ag leaders defend biofuels in wake of legislative challenge Resources ground about 823 million bushels of corn into ethanol and produced 6.5 million tons of distillers’ grains (a key feed product for livestock) along with corn oil. It contributed about $8.6 million in local real estate taxes during that time and employs about 260 people. Subsidiaries of Big River Resources operate grain facilities in the western Illinois communities of Aledo, Edgington, Galva, Gerlaw and Monmouth. Defenbaugh believes the recent attacks on the RFS are the result of oil companies trying to maintain or grow market share at a time of ample oil supplies and weaker prices. “We’re really talking about market share,” he said. “Big oil doesn’t want to give up market share (to the ethanol industry).” Rob Elliott, first vice president of the National Corn Growers Association and a Monmouth farmer, notes that growth of the ethanol industry, which consumes about 5 billion bushels of corn annually, supports corn prices. But the run-up in corn prices in previous years also was due in part to expanding demand growth in emerging markets and supply shortages in recent years, including the 2012 drought. Farmers, though, took care of the supply shortages. “Two years in a row, we produced more corn and soybeans than we’re using up,” Elliott said. “Corn prices currently are below the cost of production,” he continued. “Keeping the RFS in place and maintaining that demand component we need is a big deal.” Alan Adams, president of the Illinois Beef Association and a cattle producer from Sandwich, said the growth of the ethanol industry provides key feed ingredients to livestock producers. “We now have a way to feed cattle cheaper (in the Midwest) than anywhere else in the world,” he said. “The good news is we’re seeing an increase in the cattle herd,” he continued. “We’ll gradually see (retail) beef prices come down.”

area to evaluate soil fertilization needs and develop application plans. He believes corn in some fields with low nitrogen levels could look a “little ugly” at the two- or three-leaf stage this spring. But farmers can rectify those issues by spreading out nitrogen applications. Fertilizer prices as of the first of last week remained high, according to the Illinois Production Cost Report. The statewide average prices of anhydrous ammonia ($732 per ton), urea ($456), potash ($480), diammonium phosphate ($555) and liquid nitrogen ($330) all increased from the previous month. Ag leaders also believe the expansion of ag trade remains vital after consecutive years of record corn and soybean production. “We need to continue to find markets for our products,” said Ron Moore, vice president of the American Soybean Association and a Roseville farmer. Moore and other farm leaders called on Congress to pass Trade Promotion Authority to enhance free trade negotiations with Europe and countries in the Trans-Pacific Partnership.

Study: Miscanthus a promising fuel source A recent University of Illinois study simulating a side-byside comparison of yields and costs of producing ethanol found miscanthus as the clear winner. Models predict miscanthus will have higher yield and profit compared to switchgrass and corn stover. That’s particularly true for miscanthus grown in poor-quality soil. The fast-growing grass also outperformed corn stover and switchgrass in its ability to reduce greenhouse gas emissions. “One of the reasons for interest in these second-generation cellulosic feedstocks is that if they can be grown on low-quality soil, they wouldn’t compete for land with food crops, such as corn,” said University of Illinois Agricultural Economist Madhu Khanna, who co-authored the study along with a team of economists, and environmental and crop scientists from the Energy Biosciences Institute at U of I. The study used real data from the U of I energy farm and other locations across the country to calibrate the model. The model simulated yields and greenhouse gas savings under 30 years of variable weather conditions. “Ethanol made from miscanthus would need a much smaller carbon price to make it desirable to produce and for consumers to purchase as compared to ethanol from switchgrass and corn stover. Even though corn stover may in some cases be cheaper to produce, it is a much more expensive way to reduce greenhouse gas emissions than energy grasses,” Khanna said.

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FarmWeek • Page 6 • Monday, March 16, 2015

IFB meets with McDonald’s

BY JOANIE STIERS FarmWeek

Company’s food policy aligns with farm trends in the poultry it sources. This type of antibiotic, which is not used for humans, promotes growth and helps keep chickens healthy, said Jim Fraley, livestock program director for IFB. In particular, this antibiotic can prevent or control coccidiosis. Ionophores meet McDonald’s new policy to source only chicken raised without antibiotics that are important to human medicine. The company will not allow the use of any other types of antibiotics beyond this prevention medication in the poultry it purchases. “McDonald’s believes that any animals that become ill deserve appropriate veterinary care and our suppliers will continue to treat poultry with prescribed antibiotics, and then they (antibiotics used by humans) will no longer be included in our food supply,” said Marion Gross, senior vice president of McDonald’s North America Supply Chain. In addition, the company announced that milk jugs at its 14,000 U.S. restaurants will contain milk from cows not treated with rBST. Use of rBST has

The McDonald’s USA announcement early this month regarding antibiotic use in poultry and hormone use in milk production aligns with consumer concerns, the company says. The Illinois Farm Bureau met with McDonald’s officials last week to discuss the company’s branding initiative. The meeting solidified the ongoing communication and respect between IFB and the restaurant giant based in Oak Brook. “I think we have a very good working relationship with McDonald’s,” said Ryan Tracy, director of external relations for IFB. “The mood was upbeat. It Ryan Tracy was really a tone of, ‘we want to work together and be helpful to each other.’” McDonald’s announced an antibiotic policy March 4 that would allow only ionophores

fallen significantly nationwide in the last decade, according to IFB. The restaurant chain also recognizes that studies show no significant difference in the milk produced between use and nonuse of rBST. McDonald’s identifies the issues of antibiotic and hormone use as “important to consumers.” In the same announcement, McDonald’s referenced its ongoing work as a founding member of the newly formed U.S. Roundtable on Sustainable Beef. When Tracy met with McDonald’s on this topic last year, the company indicated its intention to collaborate with the industry to find answers leading to sustainable beef, not to mandate the industry into a particular outcome. “Our customers care more than ever about the food they eat and how it is sourced. We are taking steps to deliver on their expectations of us,” said Jill Manata, vice president of McDonald’s Public Affairs & CSR Engagement. “We can’t do it alone, and collaboration with others, especially our suppliers and the ag industry, is essential.”

Trees Forever will sponsor two workshops on tree care in Taylorville and in Hillsboro. Trees Forever, TreeKeepers and others who want to develop skills to improve their trees may attend the free, hands-on workshops to learn about pruning, species selection and choosing the right tree for the right place. Participants can bring their own hand tools for hands-on practice of pruning. Lunch will be provided, but freewill donations will

Trees Forever sponsoring workshops be accepted. Dates and locations: • March 21, 10 a.m. to 3 p.m., Manners Park dining hall, Taylorville, and • March 28, 10 a.m. to 3 p.m., Bremer Sanctuary, Hillsboro. Register online by visiting {treesforever.org/TreeKeep ers}. For more information, contact Barb Grabner-Kerns at 217-561-1062 or bgrabner@ treesforever.org.

An enforcement-only approach to immigration will not help farmers secure a stable work force for their livestock, fruit, vegetable and seed corn operations. That’s the resounding message sent last week by Illinois Farm Bureau President Rich Guebert Jr. at a meeting of the Illinois Business Immigration Coalition where the group called for comprehensive, not a “piecemeal,” approach to immigration reform. The group staged a meeting at St. Ignatius High School in Chicago. Attendees included U.S. Sen. Mark Kirk, R-Ill., Illinois Republican Reps. Bob Dold, Adam Kinzinger and Aaron Schock, and Gov. Bruce Rauner — all vocal supporters for the need to revisit the nation’s Rich Guebert Jr. immigration policies. In addition to Guebert and the American Farm Bureau Federation (AFBF), the Agriculture Workforce Coalition voiced opposition last week to the Legal Work Force Act, HR 1147, which requires employers to check the work eligibility of all future hires through the E-Verify system. The Internet-based program allows employers to check a job applicant’s identification against Social Security Administration and Homeland Security Department records to confirm employment eligibility. “While there’s no question mandatory E-Verify has its place in comprehensive immigration reform, stand-alone E-Verify — without any legislation that would provide farmers access to a legal, current work force and a new temporary worker program — would damage the ability of farmers to hire an experienced, capable and legal work force,” Guebert said. AFBF believes any federal mandates on employers to implement E-Verify must be based on an employment eligibility verification system that is simple, conclusive and timely; provides an affirmative defense for employers acting in good faith; allows for status adjustment of workers not authorized prior to implementation; and be preceded by full implementation of a usable agricultural worker program. Stand-alone E-Verify would also have significant economic repercussions for U.S. agriculture and consumers. AFBF commissioned a study last year that showed an enforcement-only approach to ag labor would decrease farm asset values by 10 to 15 percent, reduce farm income 15 to 29 percent and drive a large portion of domestic food production out of the U.S. Meanwhile, American consumers would pay 5 to 6 percent more for their groceries. Guebert added Farm Bureau does not support an agriculture exemption. He said that would do nothing to provide a stable labor force. “Only legislation creating an agricultural worker program can provide stability,” he concluded.

IFB lends voice to call for immigration reform

The Southern Illinois Beekeepers Association will host its first Field Day at 9 a.m. April 25 at the Jackson County Extension office, Murphysboro. The advance registration deadline is April 18. The rain date will be May 9. The association draws members from the state’s 16 southernmost counties. The cost, including lunch, is $20 for association members and $35 for nonmembers. The event includes hands-on educational presentations. Topics will include: inexpensive beekeeping, hive construction, honeybee pest management, extracting and processing honey, bee equipment and hive inspections, catching bee swarms, expanding your apiary and re-queening, bee rescues from logs and walls, and making creamed and flavored honeys, lip balms and lotion bars. Honeybee supply vendors will exhibit products, and a used honeybee equipment swap meet is planned. To register or for more information, contact Jesse Will at 618-571-2716 or jcwill@midwest.net. Additional information is available on Facebook at S.I. All-A-Buzz.

Southern IL Beekeepers slates field day

Pork producers strive to build domestic demand Meat consumers looking forward to the upcoming grilling season should be thrilled with the prospects of increased pork availability and lower prices. An increase in pork production in the U.S. along with a slower export pace, due in part to a stronger dollar and greater competition from the European Union, mean more pork tenderloin, chops and other cuts will be readily available in U.S. stores this year. Pork industry leaders discussed building demand and other issues recently at the National Pork Industry Forum in San Antonio. The event featured the annual meeting of the National Pork Producers Council (NPPC) and the National Pork Board (NPB). “We definitely have a higher supply,” said Tim Maiers, interim executive director of the Illinois Pork Producers Association and Adams County farmer. “We could have an additional 1 billion pounds of pork to absorb in the domestic market.” Domestic meat consumption declined about 10 percent in previous years, but Chris Hurt, Purdue University ag economist, believes it could grow by 4 to 5 pounds or more per person this year. However, dietary guideline recommendations released recently by USDA that call for consumers to eat more vegetables and less meat pose one obstacle to boosting domestic pork demand.

BY DANIEL GRANT FarmWeek

Page 7 • Monday, March 16, 2015 • FarmWeek

Pork industry leaders voiced their concerns about the dietary recommendations with Ag Secretary Tom Vilsack at the pork forum. “We’re concerned with the recommendations,” Maiers said. “We feel like (the dietary report) disregarded sciTim Maiers ence that shows protein is very valuable in diets.” NPB noted that a 3-ounce serving of lean pork provides about the same amount of protein as 1.5 cups of black beans, but with 21 percent fewer calories. Pork leaders also continue

Beef cow, calf meeting slated March 26 Cattlemen and others interested in cattle production will gain new research-based information from 6:30 to 8 p.m. March 26 at Kountry Kitchen, Teutopolis. The registration deadline for limited seats is March 20. Travis Meteer and Teresa Steckler, University of Illinois Extension commercial agriculture educators, will present up-to-date information that influences cattle production profitability. Meteer will discuss cow body condition scores’

to urge Congress to pass Trade Promotion Authority to pave the way for the Trans-Pacific Partnership free trade agreement, and look for a legal solution to countryof-origin labeling. “It all plays in to how well we’re positioned to take advantage of growth (in protein demand) around the world,” Maiers said. “We

need access to markets.” Pork leaders at the forum also passed resolutions that call for premise identification numbers to be incorporated into diagnostic lab records, improved disease tracking nationwide, and continued use of approved antibiotics in the livestock industry. Illinois was well represented at the event by six dele-

gates at each meeting, and will provide a greater leadership role this year. Gary Asay, a pork producer from Osco, was elected to NPB, pending approval from Vilsack. Ken Maschhoff, a pork producer from Carlyle, was elected vice president of NPPC, while Phil Borgic of Nokomis was re-elected to the NPPC board.

impact on profitability and research at the Orr Research Center, Perry. Steckler will talk about herd health issues. Preregistration is required. For information or to register, contact Lisa with Crossroads Beef Producers at 217-821-7241. The U of I Extension, US Feeds, Keifer Farms, Crossroads Beef Producers and AnimalHealthSupply.com are sponsoring the meeting and meal.

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The University of Illinois Ewing Demonstration Center will host a cover crop field day starting at 8:30 a.m., rain or shine, March 26. The registration deadline is March 24. The center is located on 16132 N. Ewing Road, Ewing. Topics will include: challenges of grazing lush, spring forage; techniques for planting into cover crop residue; understanding southern Illinois soil profiles; and cover crop species selection. Participants will tour the demonstration trial of 17 cover crop species and combinations. The field day event is free. A meal will be provided. Register by March 24 with the Franklin County Extension office at 618-439-3178.

Ewing Center schedules cover crop field day

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FarmWeek • Page 8 • Monday, March 16, 2015

Efforts to boost soybean yields in the U.S. certainly paid off in recent years. U.S. farmers produced consecutive, record bean crops in 2013 and 2014. Last year’s production totals, 3.969 billion bushels of beans with a national average yield of 47.8 bushels per acre, rank as the largest on record. But farmers and researchers believe they must continue to push the envelope to produce more beans in the future to keep up with rising demand and improve the bottom line for growers. The United Soybean Board (USB) recently funded a threeyear project with eight universities (Illinois along with Arkansas, Kansas State, Kentucky, Michigan State, Minnesota, Purdue and Wisconsin) to examine ways to boost yields and increase profitability. “Innovation is the key to us improving our profitability,” John Dodson, a USB director from Tennessee, said recently at Commodity Classic. “The checkoff invested $12 million in production research in the past year. It leads to techno-

BY DANIEL GRANT FarmWeek

Researchers seek to boost bean yields Will China continue logical advances that benefit soy producers.” The yield project compared the effects of using a package of yield enhancing technology,

‘Innovation is the key to us improving our profitability.’

— John Dodson USB director

such as foliar treatments, nitrogen, foliar fungicide/insecticide and seed treatments versus fields with fewer inputs. “We often look at products individually,” said Chad Lee, Extension professor at the University of Kentucky. “This project looked at various products (packaged) together.” Results from the project are preliminary and researchers still have a great deal of information to glean from their findings. However, they found the high-input production model produces an average yield bump of 3.7 percent.

The biggest yield gain was in northern states (Michigan, Minnesota and Wisconsin) where the average yield increased 4.6 bushels per acre with the high-input package. The yield gain averaged 3.8 bushels in the “I” states and just 2 bushels in the south (Arkansas, Kentucky, Kansas). Researchers believe the yield boost in the north was due in part to a greater response to foliar fungicide. Two key factors for higher yields include an increase in the number of seeds per unit area and greater seed mass, or larger seeds. They also found the best yields in narrow (15 inch) rows. Initial results of the project found seeding rates didn’t impact yields as much as other inputs. “Most of the time, growers (in tight margin years) want to cut inputs they shouldn’t be cutting, such as fertilizer and pre-emergence herbicide,” said Shawn Conley, agronomist at the University of Wisconsin. “What should they cut based on the data? Seeding rates.” Researchers in the study also focused on planting soybean fields in good conditions and in a timely manner.

There’s a difference between field experts and experts in the field.

At FS, we’re experts in the field. Our crop specialists are driven to maximize every acre and bring the latest agronomic technologies and innovations to your farm. Whether recommending the appropriate opriate hybrid or variety y, , nutrient management m for optimum growth, or advice on disease and pest management, our crop specialists are always focused on pointing your operations forward. So, the only thing you’ll be asking FS is, what’ ’s next?

Western Illinois University’s (WIU) School of Agriculture will host prospective students and their parents at its annual Spring Open House starting at 9 a.m. March 27 on the Macomb campus. School of ag faculty and current students will answer questions and lead tours of the campus, university farm and agriculture-related facilities. Participants should park at the WIU Livestock Center, 2201 Wigwam Hollow Road, Macomb. The event is free and open to the public. Participants who register will receive a complimentary lunch. Two, $250 scholarships will be awarded to two random open house participants. To register, visit {wiu.edu/cbt/agriculture/openhouse.php}. For more information, call the WIU School of Ag at 309-298-1080.

Thursday: • Dr. Paul Pedersen and Chad Boore, OSF St. Joseph Medical Center: advanced care • Greg Ginisty, Bayer CropScience: ILeVO treatment for soybeans • Sharon Covert, Illinois Soybean Association: European trade mission Friday: • Monica Nyman, St. Louis District Dairy Council: National Nutrition Month • Ryan Tracy, Illinois Farm Bureau director of external relations: working with the food industry • Dan Adcock, WinField: 2015 planting • Sean Evans, Monsanto: Genuity corn traits

WIU School of Ag plans open house

China’s entrance into the U.S. sorghum market began in September 2013, roughly coinciding with the import ban of MR162, a type of genetically modified corn. Since then, U.S. sorghum exports to China have been on a long and impressive 79-week run and have totaled more than 340 million bushels, averaging 4.4 million bushels per week. According to University of Illinois Agricultural Economist John Newton, current expectations are for this trend to continue despite China’s recent end to the yearlong ban of MR162 corn. USDA projects sorghum exports to total 230 million bushels through the 2024-25 marketing year. USDA further projects sorghum plantings to increase by nearly 400,000 acres this year to 7.5 million acres, Newton said. Prior to the 2013-14 marketing year, sorghum exports averaged approximately 38 percent of total sorghum consumption. Now, on the back of Chinese demand, exports are expected to represent 68 percent of total sorghum consumption for the 2014-15 marketing year. The market is also sending price signals to plant sorghum with both old- and new-crop sorghum prices, carrying a premium above corn prices in principal sorghum production regions such as Kansas and Texas, Newton said. Relative price strength in sorghum, combined with potential dryland yields in the face of adverse weather conditions, make sorghum an attractive planting alternative to corn in some areas this year. USDA’s March 9 Federal Grain Inspection Service (FGIS) report indicated 175 million bushels of sorghum have been exported to China as of the week ending March 5. This represents 92 percent of total U.S. sorghum exports thus far during the current marketing year. Newton said to proceed with caution. “Excluding China’s recent foray in the sorghum market, from the 1999-2000 to the 2012-13 marketing years, China imported approximately 1.2 million bushels of sorghum and had been an inconsistent buyer at best, dipping into the market only in November 2000 and October 2008,” he said. “One sign that sorghum exports could be slowing came in the most recent FGIS report where sorghum inspected for export the week ending March 5 totaled only 2.1 million bushels, down 74 percent from last week and the lowest total in 36 weeks. Time will tell if this export volume is an outlier or a sign of things to come.” For farmers holding firm in corn production, Newton said the potential for China to re-emerge as a corn export partner with the U.S. could provide opportunities for higher corn prices during the 2015-16 marketing year.

buying U.S. sorghum?

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Tuesday: • FarmWeek: “The Early Word” • Michael Taylor, Food and Drug Administration: Food Safety Modernization Act • Julie Walters, COUNTRY Financial: seed sales and proper coverage • Eric Schmidt, EJS Weather Wednesday: • Richard Guebert Jr., Illinois Farm Bureau president • Dan Hueber, The Hueber Report: USDA crop report • Jim Bower, Bower Trading • Tim Schweizer, Illinois Department of Natural Resources: hunting license renewal

ASS-MORGAN — Hunter safety course for certification, 5:30 to 9 p.m. March 24-26 at the Winchester-Funk Building. Call 2456833 to register. • Foundation scholarships are available to high school seniors or current college students majoring in agriculture. Must be a Farm Bureau member or a dependent of a member. Previous applicants are eligible to apply. Applications are available at the Farm Bureau office, Virginia and Jacksonville Extension offices, school guidance counselors and FFA advisers, and by email at cmfb1@frontier.com. Call 245-6833 for more information. • Ag week trivia contest, Monday through Friday on WLDS. Two chances each day to win a $20 fuel card to Fast Stop in Jacksonville. • Tree giveaway in April at the Farm Bureau office. Five Oak (White/Red/Burr variety) saplings will be given to members. Limited quantities available. Call 245-6833 to order. OOK — Chicago Flower and Garden Show March 14-22 discounted tickets. To purchase advance tickets or for more information, visit {cookcfb.org} or call 708-354-3276. UMBERLAND — Two Foundation scholarships are available to graduating seniors and/or current college students majoring in an ag-related field of study. Call 849-3031 for an application. Application deadline is March 25. OUGLAS — Annual meeting, registration at 5:30 p.m. Thursday at Yoder’s Kitchen in Arthur. David Erickson, Illinois Farm Bureau vice president, will speak. Call 253-4442 for reservations. • Women’s committee Easter brunch, Farm Service Agency (FSA) and farm bill meeting 10 a.m. March 25 at Farm Bureau office. Peggy Dundas, FSA, will speak. Call 253-4442 for reservations. REENE — Foundation scholarship applications for the 2015-16 academic year are available at the Farm Bureau office, and from school guidance counselors and ag teachers. Application deadline is noon March 27. ANCOCK — Used oil collection, 8 to 11 a.m. Friday at Hancock County Extension Center, Carthage; Hancock County Fairgrounds, Augusta; and Sullivan Auctioneers, Hamilton. Proceeds will benefit the Hancock County Fair. Call 357-3141 for more information.

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ERSEY — Foundation scholarship applications for the 2015-16 academic year are available at the Farm Bureau office, and from school guidance counselors and ag teachers. Application deadline is noon March 27. ANE — Illinois Nutrient Loss Reduction Strategy and cover crop luncheon seminar, 9:30 a.m. March 24 at the Farm Bureau office. Lauren Lurkins, IFB director of natural and environmental resources; Russel Higgins, University of Illinois Extension; and a panel of local farmers will speak. A cover crop plot tour will be included. Call 584-8660 by Friday for reservations. EE — Pre-order 2015 commemorative plat book, $35 each or 3 for $100. Orders and payment due at the Farm Bureau office, P.O. Box 198, Amboy, Ill., 61310 by April 15. Plat books will be available for pickup June 13. Call 857-3531 for more information. • Seeking photos and memorabilia for Farm Bureau’s 100th anniversary. Call 8573531 or email leecfb@com cast.net. ACOUPIN — MCAE Foundation Scholarship applications available at Farm Bureau office, by calling 854-2571, or by emailing mcfb@frontiernet.net. Application deadline is Friday. ARION — National Agriculture Week breakfast, 6 to 9 a.m. Wednesday in the Farm Bureau auditorium. Cost is 50 cents. Proceeds will benefit Ag in the Classroom. Tickets are available at the Farm Bureau office. ASON — Ladies with an interest in agriculture luncheon, 9:30 a.m. March 24 at the Farm Bureau building. Call 5434451 by Wednesday for reservations and more information. ERRY — Foundation scholarship applications are available at the Farm Bureau office, by emailing per ryfarmbureau@frontier.com, and from school guidance counselors and ag teachers. Applicants must be a a high school senior who is a member or a dependent of a member and pursuing a degree in agriculture. Application deadline is March 31. • Defensive driving class, 8:30 a.m. to 12:30 p.m. March 23-24 at the Farm Bureau office. Joel Hillyard, AARP, will instruct. Cost is $15 for members and $20 for nonmembers. Call the Farm Bureau office at 357-9355 for reservations by Wednesday. CHUYLER — County ag day breakfast, 6 to 8

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a.m. Friday at the Phoenix Opera House in Rushville. Award ceremony for Master Farmer, Young Farmer, Patron to Ag, essay and poster winners will begin at 7 a.m. Call 322-4353 for more information. HELBY — Young Farmer hosted farm-city breakfast, 6 to 8 a.m. Thursday at the Shelby County 4-H Center. Cost is $1. Call 774-2151 or email shelbycofb@consoli dated.net for reservations. TEPHENSON — Defensive driving class, 10 a.m. to 3 p.m. April 1-2 at the Farm Bureau office. Doug Sommer will instruct. Lunch will be provided. Cost is $15 for members and $25 for nonmembers. Call 232-3186 for reservations by March 25. ERMILION — Members will bag groceries and meet with the public from 10 a.m. to noon Wednesday at County Market grocery stores in Danville and Tilton. ABASH — Two Foundation collegiate scholarships for the 2015-16 school year are available. Wabash County high school seniors attending college in the fall of 2015 and graduates

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from Wabash County currently attending college pursuing a degree in an ag-related field of study are eligible to apply. Call 262-5865 or email wabashfb@ frontier.com for more information. Application deadline is March 31. ASHINGTON — Defensive driving class, 9 a.m. to 1 p.m. March 26-27 at the Farm Bureau office. Cost is $15 for members and $20 for nonmembers. Call 327-3081 for reservations by March 24. • Legislative breakfast, 8:30 a.m. March 28 at Little Nashville Restaurant. U.S. Rep. John Shimkus, RCollinsville; Sen. Kyle McCarter, R-Lebanon; Sen. David Luechtefeld, ROkawville; Rep. Charlie Meier, R-Okawville; and Rep. Terri Bryant, R-Murphysboro, will provide comments from their respective offices and answer questions. Call 3273081 for reservations by March 24. • Applications for the $3,200 Washington County Agriculture Future of America Community Scholarship for high school seniors pursuing a degree in agriculture are

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available at (agfuture.org/ scholarships}. Application deadline is Friday. • Foundation scholarship applications are available at the Farm Bureau office. Call the Farm Bureau office at 327-3081 for scholarship details and eligibility requirements. Application deadline is March 31. AYNE — 4-H Project Grant Program applications are available at {waynefb.com} or from 4-H club leaders. The grant provides financial assistance to purchase equipment and supplies. Application deadline is April 1. HITE — Concealed carry certification class for members, 8 a.m. to 6 p.m. March 27-28 at the Farm Bureau office. Cost is $200 plus ammunition. Mike and Valinda Rowe will instruct. Call 382-8512 to register by March 26. OODFORD — Young Leader meeting, 6:30 p.m. March 26 at the Farm Bureau building. Ryan Whitehouse, IFB associate director of national legislation and policy development, will speak.

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Celebrate farming’s future

Since 1927, FS has been bringing leading products and services to the farm. m. On National Ag Day y, , we celebrate those who are bringing up future generations of agriculture. Thank you for readying them for what’ ’s s next. FS celebrates Ag Day at www w.fssystem.com .fssystem.com

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Livestock producers responded to lower feed prices in recent months by expanding herds and flocks. And that trend could continue the next few years, according to Chris Hurt, Purdue University ag Chris Hurt economist. “I think we’ll see a miniboom of livestock expansion. The financial incentive is finally there,” Hurt said last week at the WILL Ag Outlook Conference in Covington, Ind. “I see us regaining lost production the next three years.” Feed prices since last year dropped to a five-year low, while pasture conditions improved in some areas of the south and west. Livestock producers, who last year received record prices for market animals, already responded by ramping up pork and poultry production. Production this year in the U.S. could grow by 6 to 7 percent for pork, 6 percent for turkey, 4 percent for chicken, 3 percent for milk and 2 percent for eggs. “The increase in numbers (this quickly) was a surprise,” Hurt said. “Now we’re back on

Economist predicts multiyear growth in livestock sector

BY DANIEL GRANT FarmWeek

FarmWeek • Page 10 • Monday, March 16, 2015

USA Today recently referred to the agricultural equipment industry as suffering an “ag sag.” But we haven’t seen that happen in the grain storage, handling and conditioning industry. A chart developed by USDA Jan. 12 shows corn and soybean stocks at the highest level since 2005. That translates into the immediate need of hanBob Rasmus dling those inventories. Drilling down into the USDA data, it’s interesting to find that December on-farm inventories of corn are up 11 percent from the previous

BY BOB RASMUS

Avoid suffering grain handling ‘ag sag’ year, while off-farm stocks are up 1 percent. For soybeans, on-farm stocks are up 28 percent and off-farm up 9 percent. There are many market and marketing decisions made on an individual basis, but the fundamentals are driving investments in grain storage. Grain storage, and handling and conditioning equipment decisions are complex. There is no trading in a bin and its foundation for a different model. The sizing, specifications and location have to be right the first time. Had we known in 1999 when the Illinois corn yield averaged 140 bushels per acre that the Illinois corn yield in 2014 would average 200 bushels per acre, what would have been done differently? Will that yield be 285 bushels per acre in the year 2030? If so, the bin you build will only be a third through its expected lifetime and still need to serve you as part of a growing grain system. Design your 2030 grain system now. Here are a few tips to get the creativity flowing. First, build for the bumper crop. That sounds like a salesperson talking, right? But that eventual bumper crop and the trend of higher yields is indisputable, so adopt this mentality at the outset. Then create a drawing that allows physical space to double your storage without running into buildings or property lines and leaves you a good traffic pattern.

the side saying the animal industry is in a multiyear recovery and is interested in using a lot more corn and corn products.” USDA last week raised its estimate of feed and residual corn use by 50 million bushels. Cattle numbers, which take longer to rebuild, also are on an uptrend since dipping to the lowest level since 1952. The cattle herd in the South-

ern Plains as of Jan. 1 increased by 600,000 head. Farmers in that region previously liquidated herds due to a multiyear drought and high feed prices. Hurt believes cattle prices could be close to record highs again this year. Hog producers, though, could go from an average of $53 per head profit last year to near breakeven this year as traders likely overestimated pro-

duction losses from porcine epidemic diarrhea virus (PEDV). “Last year, the talk of PEDV led some analysts to estimate pork production could be down as much as 20 percent when, in reality, production ended up down just 2 percent,” he said. “Producers compensated some by building weights up.” So, where will U.S. farmers sell additional meat and dairy products?

Hurt believes domestic per capita consumption will increase slightly due to larger supplies and lower prices. But the “growth market” remains exports. Unfortunately, meat exports are off to a slow start this year due in part to the strength of the U.S. dollar, a slowdown in economic growth in China and flat growth in Japan and the European Union, Hurt added.

The Class III price for milk adjusted to 3.5 percent butterfat for the month of December was announced at $15.46 per hundredweight. This represents a drop of 72 cents from the previous month’s announcement, and is $9.14 less than the all-time high in September. Exports are cooling off with fewer pounds heading overseas, due to a relatively strong U.S. dollar. USDA, reducing its milk production forecasts once again, has some industry analysts wondering if herd expansions are still not up to pace, or milk production is simply not responding to a “spring flush.”

Milk prices continue to drift lower

Bob Rasmus serves as GROWMARK’s Facility Planning division manager. His email address is brasmus@growmark.com.

Finally, jot in some capacities on the drawing for unloading, drying and handling. Ask yourself how long it should take when unloading and if you’re willing to run the dryer 24 hours. Those two questions will determine many capacities and sizes throughout the grain system. I was recently at an Iowa farm where the farmer produced a simple pencil drawing his dad had made of their future grain system many years prior. It was the best idea of the day.

The industry is starting to see early forecasts for world grain production for the year ahead. In general, the initial forecasts are smaller than last year with one set pointing to crops smaller than the last two years. In early November, we outlined how the average wheat and feed grain yield hit new record levels the last two years. Not only that, the departure from trend was at near-record levels for both years as well. That is highly unusual. There has never been three years in a row during the last 50 years. If wheat and corn yields would drop closer to trend, it points to a more fundamentally balanced scenario this year. Corn yields in particular have been exceptionally high the last two years, suggesting their fundamental structure could tighten the most. A drop back to trend would represent a 3 percent reduction in yield, cutting output 30 million metric tons (mmt) if acreage remains unchanged. But with the U.S. expected to cut plantings somewhat, the decline could be closer to 35 to 40 mmt. Assuming consumption remains relatively robust with the ongoing moderate price lev-

Grain supplies may not be as abundant

els, ending stocks would decline as would the stocks/use ratio. The world stocks/use ratio could drop closer to the lower levels that have occurred since 2000. And those years all had notable upside price moves. Wheat yields haven’t been as robust as corn yields the last two years, but have been good nonetheless. An increase in area has been just as responsible for wheat production gains as yield. There are indications of slippage in the planted area of winter crops in some countries, including the U.S. A 2015 yield the same as 2014’s would put yield at trend for this year. As a result, production slippage for wheat might be more modest unless weather cuts into the output. Early forecasts show wheat output dropping 5 to 20 mmt. Assuming consumption holds firm with the relatively low prices, ending stocks would be trimmed a similar amount. The stocks/use ratio would drop back close to 2012-13 levels. While wheat prices in that era weren’t as “splashy” as some recent years, they were still either side of $7 in the U.S. That’s significantly better than today’s $5 level. While none of this is “wildly bullish,” it does suggest the odds of seeing upside price movement are markedly better than those of seeing further weakness. In the short term, wheat may be the more important one to watch with winter crops around the world starting to break dormancy.

ü2014 crop: Even with this past week’s slippage, corn prices remain stuck in a choppy, sideways range. We still expect better selling opportunities this spring/summer; make only needed sales at this time. If you need to sell, we’d recommend a basis contract to secure cash, leaving pricing open into late spring. Continue to hold 2013 crop for expected long-term improvement. ü2015 crop: The bigger technical picture still points to higher prices, although we don’t expect much movement until spring. We see no reason to price new crop at this time. It is time to buy out-of-the money, new-crop call options you can make sales against this spring/summer. vFundamentals: The new USDA supply/demand forecast is helping underpin the market. Still, corn, like the other grains, is waiting for fresh fundamental news. The March 31 USDA numbers and spring planting weather will dominate activity going forward. Until then, dollar movement may dominate day-to-day action. ü2014 crop: Export activity is dropping off with the world starting to source needs out of South America. Still, their short-term situation is not conducive to making big shipments. Dollar strength seems to be driving the decline more than anything. Even though short-term weakness may prevail, we don’t believe prices are poised for a major break. Hold off making sales. ü2015 crop: New-crop prices are still taking their lead from old-crop prices. Economics and insurance guarantees should keep acreage from growing. We have no interest in pricing 2015 crop at these levels. vFundamentals: The truck situation continues to dominate the news in Brazil. They met with government officials again regarding fuel taxes and freight rates, but we’ve heard little on the outcome of the meetings. If they don’t get some concessions, they are threatening to strike again. But more than anything,

Corn Strategy

Page 11 • Monday, March 16, 2015 • FarmWeek Cents per bu.

Soybean Strategy

the dollar strength and negative commodity attitude is weighing on prices. ü2014 crop: Better sales opportunities are expected to come during spring. ü2015 crop: Hold off making sales while prices are still in the process of carving out a bottom. v Fundamentals: Wheat futures are making a recovery from new contract lows put in recently. Warmer temperatures have eased winterkill concerns, but a dry weather forecast is putting some premium back into prices. Gov-

Wheat Strategy

ernment climatologists are labeling parts of the Southern Plains with “extreme” and “exceptional” drought ratings. Hard red winter wheat in Kansas, Oklahoma and the Texas Panhandle are emerging from dormancy with conditions that could severely diminish yields. Rally potential remains somewhat limited by continued dollar strength and a weak export outlook. The U.S. faces plenty of competition from big crops abroad. Regardless, a renewed focus on new-crop concerns is likely to lend support to prices this spring.

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FarmWeek • Page 12 • Monday, March 16, 2015

Illinois Far m Bureau Director Gar y Speckhart, left, and IFB Vice President David Erickson, center, take advantage of Agricultural Legislative Day to discuss issues with state Rep. Bob Pritchard, RH i n c k l e y. ( P h o t o b y Ken Kashian)

When I say, “Ditch the rule,” how many of you know what I am talking about? How many of you took some action on some level to tell the U.S. Environmental Protection Agency (EPA) to “ditch the rule?” This action could include attending an information session, writing comments to EPA, responding to an Action Request to call your legislator, talking to your neighbor about the impact of the EPA’s interpretative rule or even making comments on social media. I think our Ditch the Rule campaign is one of the best examples in recent memory of a RICHARD GUEBERT powerful campaign initiated by JR. Farm Bureau. We had tremendous impact in raising awareness of how EPA overstepped its authority and the negative impact of this overregulation. That Farm Bureau action occurred on all levels — national, state and county. We conducted analyses, developed message points and helped our members focus and rally behind this issue. We were successful.

Rules of engagement: Just do it Whether we’re dealing with the state of Illinois’ fiscal issues or working with the EPA or the Illinois Department of Transportation, our members need to be involved and express their views to their legislators and their “adopted” legislators. We need to work with Gov. Rauner and the members of the General Assembly to let them know how issues will impact our farms. We cannot just say, “no,” to every proposed piece of legislation or we’ll not have a seat at the table. And it is important that we be at the table. Just as important as sitting at the table is supporting the legislators who support us. This support is vitally important with the many issues facing our state and agriculture. It’s not enough for you to be engaged and active. You also need to reach out and encourage your fellow members and farmer friends to get engaged. They’ll find many different ways and levels of engagement, but each of us needs to take that first step. Our future depends on it! Richard Guebert Jr. of Ellis Grove serves as president of the Illinois Farm Bureau. Guebert delivered these comments to IFB members attending the recent Governmental Affairs Leadership Conference. change, but change is not necessarily progress.” You be the judge! DON ELLINGSON Poplar Grove

Editor: No-till has now been around for a considerable length of time, but it still gets some criticism from time to time. Some people say to practice it, you must sacrifice some yield. Not true! In 2014, which was an ideal year, our entire acreage of corn averaged 225 bushels per acre, all no-till. I’m sure we could have not done better with conventional tillage. We have been 100 percent no-till since 1977 except for seeding alfalfa. I’m sure we sacrificed some yield when we first started. We had to learn how to control weeds strictly with pesticides. Since no-tilling, we have had less soil compaction. Also, the earthworm population is much greater. Probably the greatest benefit, though, is the soil is more porous and the rainfall goes in; it doesn’t run off. After a rain, I think we can get

No yield sacrifice with no-till farming

back into our fields much sooner than those of our neighbors who conventional till. Another interesting fact about no-till that you rarely hear mentioned today is, “What if no-till had come first?” If no-till had come first, a farmer’s planting machinery would have consisted of a notill planter, a no-till drill, a sprayer and a medium-sized tractor big enough to pull those machines. Then to switch to conventional tillage, the farmer would have had to invest in one or more bigger tractors, possibly a plow, definitely a disc, a drag and some other tillage tools. Also, they would require more labor for all those extra hours going around and around the fields. And oh yes, the cost of all that extra diesel fuel. If no-till had come first, it surely would have been difficult to get any converts to conventional tillage. Something I have always said, “Progress is

Letters to the editor

Recently, I was at a farmers’ market and stopped at a booth to take a look at a catalog that described the beef and pork products available for sale from a local farm. The farm’s emphasis was on the way the cattle and hogs were raised — outside as much as possible, pasture grazing for WILLIAM the cattle and a BAILEY lot of room for the hogs to roam and explore. As I looked through the catalog, I noted a picture of a donkey. “Do you use guard donkeys to protect your animals?” I asked. It was at that point I immediately made a friend of the young man, who was at the booth to sell his products. He explained I was the first person to understand the picture was not used to sell donkey meat, but to inform people how his animals were protected — by guard donkeys. As it turns out, donkeys have been used to guard cattle, sheep and other livestock for some time. Their use has increased as the demand for local foods or more naturally raised meat and dairy products has grown. Farming operations that focus on local markets often are smaller than traditional livestock operations, and the livestock on these farms spend a considerable amount of their lives outside. A reality of spending much of

Donkeys to the rescue: Guarding territory, herds

their life outside is that predators can appear. Over the years, dogs have been used to guard against these predators. More recently, guard llamas have appeared in fields to protect the grazing livestock. However, the young man at the farmer’s market was a strong proponent of guard donkeys. He told me that, because donkeys are territorial, they are not as protective of the herd as much as they are protective of their territory. When thinking of guard donkeys, don’t think of them carefully patrolling the perimeter of a pasture. Instead, they socialize and eat with the herd, springing into action when a threat appears. When guard donkeys see a threat, they make a real racket, braying so loud it will hurt your ears, he informed me. If the loud noises aren’t enough to scare the predator, the guard donkey’s next move is to charge the intruder with the clear intention of biting and kicking it — all to protect both the donkey’s territory and the herd. While Western Illinois University farm has a lot of pasture for the cattle to graze, the idea of a guard donkey has not yet been seriously considered. So, as you drive by the university farm, someday you may spot a guard donkey among the Angus and Herefords as they calmly and safely graze in the pasture. William Bailey serves as an agriculture professor at Western Illinois University’s School of Agriculture, Macomb.

Taking another look at GMOs

Editor: John Block made the same claims for the benefits of genetically modified organisms (GMOs) in “Looking back and ahead at biotechnology advancement” (FarmWeek, Dec. 15, 2014) that he has made previously. I have refuted two of those claims — increased yields and decreased pesticide use — in my letters to FarmWeek, which included citations of recent scientific articles. Mr. Block states, “GMO critics endeavor to mislead the public by suggesting that GMOs might not be safe.” As a GMO critic, I am informing the public of the published scientific literature that indeed suggests that GMOs might not be safe for human (and other animal)

consumption and for the environment. Mr. Block also states, “There is no evidence that GMOs are any less safe than conventional crops.” A recent article states an opposite conclusion: “No consensus on GMO safety” (A. Hilbeck et al., Environmental Sciences Europe, Jan. 24, 2015). Mr. Block expresses his “ ... frustration with the ‘green activist’ attacks on modern agriculture.” I found these synonyms for green activist: conservationist, ecologist, environmentalist, nature lover and preservationist. I proudly Would you like to share information or an opinion with FarmWeek readers? Consider submitting a Letter to the Editor. Please limit your letter to 300 words. Include your name, address and phone number. Your phone number will not be published; it will simply help us verify letter authorship.

Letter policy

embrace all of these. I think Mr. Block is using “modern agriculture” to describe present-day industrial agriculture. I do not “attack” this kind of agriculture, but I do question its practices compared to those of presentday organic agriculture, which is also “modern.” Mr. Block states that “No one got sick from eating GMO foods for 20 years.” How does he know? There have been no human epidemiological studies or clinical trials on GM food consumption. HERMAN BROCKMAN Congerville Only one letter per writer will be accepted in a 60-day period. All letters will be subject to editing. Far mWeek will not publish political endorsements. You can mail letters to: FarmWeek Letters, 1701 Towanda Ave., Bloomington, Ill. 61701, or email CAnderson@ilfb.org.