Farmweek march 17, 2013 by Illinois Farm Bureau

You won’t be required to buy an ATV stamp for off-road use until Illinois DNR seeks public input on the issue...............................................4

Farmers who pump water from high-capacity wells must report water usage to the Illinois State Water Survey in 2015......................5

Add anhydrous ammonia safety training to your spring to-do list and complete an online program with your employees..........12

A service of

Lawmakers: Stop EPA from releasing more data Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

Monday, March 17, 2014

BY DEANA STROISCH FarmWeek

Two sections Volume 42, No. 11

The U.S. Environmental Protection Agency (EPA) would be prohibited from releasing additional personal information of livestock and poultry producers to the public under legislation sponsored by a handful of Congressmen. Called the “Farmer Identity Protection Act,” the proposal prohibits EPA, or any EPA contractor, from releasing personal data — names, telephone numbers, email addresses, mailing addresses, global positioning coordinates or any other information about the location of the owner, operator, livestock or employee. The information could only be released with the producer’s permission or if there isn’t any individual identifying information. Last year, EPA released personal information of more than 80,000 farmers — including some in Illinois — to three activists groups that requested the data through the Freedom of Information Act (FOIA). The Illinois Farm Bureau and Illinois Beef Association support the proposed legislation. “The Illinois Beef Association was very disappointed with EPA’s actions last February in turning over producer infor-

mation to activist groups,” said Reid Blossom, executive vice president. “Several of our members were included in that data release, which we believe was a threat to their family farms and the biosecurity of their operations. Protections against future reckless behavior like this on the part of EPA is certainly in the best interest of cattlemen in Illinois.” Lauren Lurkins, IFB’s director of natural and environmental resources, said “activist groups, both animal welfare and environmental, can use information gathered by FOIA requests to potentially harm farmers by filing frivolous lawsuits against them. Illinois Farm Bureau supports this legislation to prevent that from happening in the future.” The House bill (HR4157) was introduced by Reps. Rick Crawford, R-Ark.; Lee Terry, R-Neb.; Mike McIntyre, DN.C.; and Jim Costa, D-Calif. The Senate bill (S1343) was introduced by Sens. Joe Donnelly, D-Ind., and Chuck Grassley, R-Iowa. “Transparency is good for accountability, but putting the personal information of tens of thousands of farmers in the hands of environmental activists makes no sense,” Grassley said in a statement. “It’s time for Congress to step in and fix the problem.”

DRINK UP!

Remember to vote Tuesday!

Periodicals: Time Valued

Primary elections include congressional, gubernatorial and county races as well as decisions on local issues. Make your voice heard!

Ag alliance aims to protect farm data BY DANIEL GRANT FarmWeek

A newly formed ag industry alliance seeks to protect farm data so farmers can take advantage of new opportunities in precision agriculture. The Open Ag Data Alliance (OADA) launched last week. The group designed software to streamline data collection technology to make it more effective and ensure security and privacy of farm data. OADA was formed by Monsanto’s The Climate Corporation. Members of OADA include CNH Industrial, GROWMARK, Purdue University’s Open Ag Technology Group, Valley Irrigation and other ag seed and technology companies.

Ken Ropp of Normal gives a bottle of milk to a 6-week-old Jersey calf. Spring means calving time at Ropp Jersey Cheese, owned and operated by Ropp’s family in McLean County. (Photo by Cyndi Cook)

“OADA will work to ensure farmers can move their data seamlessly and securely between their equipment, software and services by speeding the development of technical standards for data formatting and interoperability that will be openly developed and shared,” said David Friedberg, CEO of The Climate Corp. Friedberg believes that in order for farmers to get the most value from their data, they need to control it. OADA therefore will provide an open industry standard for secure data sharing. “We’re excited about the Open Ag Data Alliance because it allows farmers to address one of their greatest frustrations today — the sharing of information between different service providers,” said

FarmWeek on the web: FarmWeekNow.com

Ron Milby, GROWMARK executive director of agronomy marketing. OADA also will tackle many farmers’ top concern about the “green data revolution” — privacy. The ag alliance will provide the technology and capabilities necessary to support security and privacy rules. A guiding principle of OADA states that farmers own data generated or entered by each farmer, their employees or by machines performing activities on their farm. “The OADA vision of secure, farmerdirected, interoperable agricultural data systems is critical to unlocking the next generation of farm productivity and efficiency,” said Andy Smith, director of industry relations for Valley Irrigation.

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

Quick Takes

MASTER FARMERS

FarmWeek Page 2 Monday, March 17, 2014

REGISTRATION OPEN FOR CONSERVATION CONGRESS — The Illinois Department of Natural Resources (IDNR) will convene Conservation Congress April 11-12 at IDNR headquarters, Springfield. Register before March 31. The event is free, but space is limited. The public may participate and work with IDNR to develop priorities. The goal is to ensure sustainable, recreational opportunities and enjoyment of natural resources that are available now for future generations. Topics may include management of wildlife resources, including predators, control of invasive species, conservation education and volunteers. To register or to see the agenda, visit the Conservation Congress page at {dnr.illinois.gov}. A webcast of the event will be available for those who cannot attend.

ACCREDITED SOIL TESTING LABS — If you’re seeking accurate soil-testing information, consider providing samples to one of 15 accredited soil testing laboratories in Illinois and surrounding states. Thanks to the Illinois Soil Testing Association’s Lab Accreditation Program (LAP), farmers can receive accurate soil test results and apply the correct amount of crop nutrients to achieve maximum yields. LAP utilizes soil analyses data developed through the Agricultural Lab Proficiency Program, a national testing service. Labs must meet certain qualification standards each cycle to remain certified, thus earning a so-called “Stamp of Approval” that signifies each participating laboratory generates results within industry statistical norms of the test method. To find an Illinois-accredited soil testing lab, visit {soiltest ing.org}.

ETHANOL EXPORTS SOAR — U.S. ethanol exports totaled 621.5 million gallons last year, the third-highest annual total on record, according to the U.S. Department of Commerce. Meanwhile, U.S. ethanol imports tallied 395.2 million gallons for the year, down 27 percent from 2012 and well below the levels envisioned by the Environmental Protection Agency — 600 to 800 million gallons — for the purposes of meeting the Renewable Fuel Standard’s advanced biofuel requirements. Exports of distillers grains — the animal feed co-product manufactured by ethanol dry mills — also set a new record of 9.7 million metric tons last year, up 31 percent from 2012. China was the leading destination for U.S. distillers grains, receiving 4.49 million metric tons, or 46 percent of the total. “U.S. produced ethanol is the world’s lowest cost liquid transportation fuel. As such, we anticipate export opportunities will continue to grow as countries across the globe recognize the air quality, high octane and superior performance of renewable ethanol,” said Bob Dinneen, president of the Renewable Fuels Association.

(ISSN0197-6680) Vol. 42 No. 11 March 17, 2014 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.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2014 Illinois Agricultural Association

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 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

Prairie Farmer names 2014 Master Farmers

Four Illinois farmers will be named 2014 Master Farmers by Prairie Farmer magazine Wednesday during a ceremony in East Peoria. Ron Bremmer, Pearl City (Stephenson County); Craig Buhrow, Ashton (Lee County); Mike Kenyon, South Elgin (Kane County); and Greg Leigh, Avon (Fulton County) were chosen for their exceptional community service and farming abilities. Candidates are nominated by farmers, agribusiness leaders and agricultural Extension specialists from throughout the state. More than 300 Illinois people have been named Master Farmer or Honorary Master Farmer since the program began in 1925. GROWMARK Inc. financially sponsors the award. RON BREMMER Last year marked 40 years of marriage for Ron and Karen Bremmer. They eventually supplemented row crop income with livestock — dairy, beef and swine. Bremmer continued milking until 1982 when he sold the herd and started farrowing in the dairy barn. In 1995, Bremmer began raising Ron Bremmer dairy replacement heifers for two local dairies. In 2002, the Bremmers formed a corporation and brought their sons, Chad and Ross, and daughters-in-law, Deb and Melanie, into the farm business. A year later, they stopped raising beef and pork, and focused solely on the dairy heifer business. The Bremmers farm nearly

2,000 acres of corn, soybeans, wheat and alfalfa. Their replacement heifer herd now numbers about 575 head. A past director of the Stephenson County Farm Bureau Board, Bremmer serves as president of the Pearl City Elevator Board and vice president of Adkins Energy LLC. CRAIG BUHROW A University of Illinois graduate, Buhrow married his wife, Marjorie, in 1972 and settled down near his family, raising grain, hogs and cattle. Buhrow now raises corn and soybeans with their son, Allyn. The Buhrows invested in on-farm storCraig Buhrow age and drying with enough capacity to store 75 percent of their average production. With river terminals, ethanol plants, processors and rail facilities all within 60 miles of the farm, on-farm storage allows them to capture rapid basis improvement and improves their marketing options. Off the farm, Buhrow served as Lee County Farm Bureau president and the Young Leader founding chairman for Whiteside County Farm Bureau. Buhrow serves as an Illinois Corn Growers Association district director and vice chairman of the Lee County Zoning Board. MIKE KENYON In the mid-1960s, Kenyon closed in on an ag economics degree at the University of Illinois. By January of 1967, he married his wife, Carol. Later that year, Kenyon’s draft notice showed up. After

River Bend Foodbank, serving 22 counties in the Quad City area, recently received $31,478 from District 3 Farm Bureau members. The donation marked the fourth straight year farmers participated in the Bushels For Hunger program.

increase compared to the previous year) to the Bushels For Hunger campaign, local farmers worked together to fight hunger in the Quad City community with these funds,” said Wayne Anderson, Geneseo farmer and Illinois Farm Bureau District 3 director. Fellow farmer Todd VerHeecke added, “Local neighbors and farmers in the fivecounty area of Illinois were anxious to pitch in and help fight hunger in their communities — this money will help provide countless meals in the River Bend Foodbank area.” The Bushels for Hunger program is a joint program coordinated by Rock Island, Henry, Mercer, Whiteside and Stark County Farm Bureaus in conjunction with a dozen local grain elevators and ethanol plants.

two years in the Army, Kenyon fulfilled his obligation and the family returned to Illinois. Over the years, Kenyon’s commitment to the farm has been unwavering. Today, he farms 1,600 acres and milks about 55 cows. Kenyon Mike Kenyon served as a director on the Illinois Farm Bureau Board and past president of Kane County Farm Bureau. He currently serves on the Kane County Board. GREG LEIGH Leigh met his wife, Nancy, in 1962 at the University of Illinois. He graduated in the spring of 1964, and they married. A month later, Leigh was deployed to Germany as an officer in the U.S. Army. The Leighs moved back to western Illinois in 1966 ready to embark on their farming life. By 1967, Leigh expanded into the hog business. He was running a farrowto-finish operation on pasture. By 1974, the hog operaGreg Leigh tion moved indoors. The Leigh’s youngest son, Randall, joined the operation in 2000. They’ve currently got capacity for 2,500 hogs weighing 50 pounds to finish. A past Fulton County Farm Bureau president, Leigh serves as co-founder and chairman of the Fulton County Sheriff ’s Merit Commission.

District 3 farmers donate Bushels For Hunger

The latest donation puts the program’s total contributions at more than $104,000. Seventyseven members donated corn and soybeans to participating elevators. Contributed grain gets sold and the proceeds go to the food bank. “Thanks to the generous donations of more than 5,500 bushels of grain (a 1,100-bushel

River Bend Foodbank Executive Director Tom Laughlin, left, accepts a check for $31,478 from Wayne Anderson, Illinois Farm Bureau District 3 director. Mike Secymore, Gold Star FS, and Todd VerHeecke, Henr y County F a r m B u r e a u Yo u n g L e a d e r s , helped with the check presentation from the Bushels for Hunger program. (Photo by Katie Laleman, Henry County Farm Bureau manager)

STATE

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Good practices ensure grain insurance fund protection BY KAY SHIPMAN FarmWeek

Farmers with good business practices maximize their protection under the Illinois Grain Code and Grain Insurance Fund. Stuart Selinger, chief of the Illinois Department of Agriculture’s (IDOA) warehouse bureau, advised farmers to be sure their grain assets are protected. Currently, the state grain insurance fund balance totals $7.2 million, he said. “Be sure you’re doing business with a state-licensed grain dealer and state or federal warehouseman that participates in the Illinois Grain Insurance Fund, in order to be afforded protection,” Selinger said. Some federal grain warehouses operating in Illinois are not participants in the state grain insurance fund, he noted. Licensed facilities must post their licenses at their facilities. IDOA lists licensed grain operations online, and the information may be searched by business name or location. Visit {agr.state.il.us} and click on the “programs and services” icon on the left side. Scroll down to “agricultural

industry regulation” and click on “Grain Warehouse/Dealer, Personal Property Storage and Agricultural Cooperatives.” Farmers with warehouse receipts for stored grain that they own receive a high level of coverage. Those farmers are guaranteed a pro-rated portion of a facility’s liquidated grain assets should the business fail, Selinger explained. Warehouse claimants then receive up to $1 million after the pro-rata distribution to make their warehouse claim whole. IDOA determines the price of stored grain based on the average area market bid on the date of the business failure, Selinger said. For farmers who have deliv-

Farmers with crop insurance who plant cover crops have different options, but need to be sure they follow USDA guidelines, according to Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management. Yoder discussed crop insurance impacts on cover crop termination with IFB’s Conservation and Natural Resources Strength With Advisory Team (SWAT) last week. The Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS) and Risk Management Agency (RMA) now work under unified cover crop guidelines, Yoder noted. Previously, each agency had slightly different guidelines. One of the biggest changes allows grazing of cover crops or harvesting them for hay or silage as long as “the planned amount of biomass is available at the time of termination,” Yoder said. Prior agency approval is not required, he added. Determinations of up to 13 special considerations may be made by University of Illinois

Extension or NRCS on a farm-by-farm basis. All agencies will abide by that determination. Yoder also noted cover crop termination requirements related to planting of the primary crop in Illinois. Under crop insurance, a corn crop, for example, would be counted as a secondary crop if the cover crop is harvested — unless the farmer terminates the cover crop within five days after planting the corn crop, but before the corn emerges. That provision would apply unless NRCS or an approved Extension specialist has granted special consideration. “This is a new set of federal guidelines,” Yoder said. “The government will never be able to come up with guidelines that cover every unique individual farm present, but they will reconsider the circumstances every year.” For example, if the preplant season is wetter or drier than usual, NRCS will consider adjusting when the cover crop may be terminated to remove or leave more moisture in a field. — Kay Shipman

Be aware of crop insurance changes related to cover crops

ered grain and settled on a price but haven’t been paid, the level of coverage depends on lapsed time between when the title was relinquished and the business closed. To assure full coverage, farmers should insist on being paid within 21 days of delivering and pricing grain. Up to 21 days, farmers are guaranteed up to $1 million per claimant. Between 22 and 160 days, farmers are guaranteed only 85 percent coverage up to a maximum of $250,000. After 160 days, farmers receive no coverage under the grain insurance fund. Farmers who deliver and sell grain with a price-later contract receive 100 percent coverage if the failure occurs within 21 days of delivery and if grain is priced before the failure. Between 22 days of pricing or 365 days after delivery, those farmers receive 85 percent coverage up to $250,000. After 365 days, the grain insurance fund provides no coverage. Selinger pointed out the $250,000 maximum per grain dealer claimant — those who sold their grain for which payment has not been received — is cumulative and takes into account different claims.

FUTURE OLYMPIAN?

Leah Viesselmann, a Bureau County Farm Bureau Young Leader, practices her Olympicstyle curling technique during a recent District 4 Young Leader curling outing. An instructor from the Waltham Curling Club in Triumph watches her student. (Photo by Jill Frueh, Bureau County Farm Bureau manager)

Get Ready to Unleash the Potential of Your Soybeans. 100 Bushels. Your New Goal. Soybeans have a remarkable yield potential, and if managed for high yield, 100 bushels per acre is possible and within reach in Illinois. The ISA Yield Challenge puts innovative techniques and approaches to the test, pushing soybeans to unleash their full yield potential. Be the grower with the highest percentage yield increase in your district and you’ll take home $500. Come in second and you’ll take home $250. The grower who reaches the highest number of bushels above the 100 bushel per acre mark takes home $5,000! So set a new goal for your yields and make this YOUR year! Take the 2014 Yield Challenge today.

For more details and to register, please visit www.soyyieldchallenge.com or email yieldchallenge@ilsoy.org. Registration Fee: Only $25 per participant! We encourage companies to sponsor and work with growers to test new technologies and farming practices!

GOVERNMENT

FarmWeek Page 4 Monday, March 17, 2014

Ag groups opposed to Japan’s demands BY DEANA STROISCH FarmWeek

Saying it “sets up agriculture for a dangerous future,” five agricultural groups and U.S. Sen. Chuck Grassley, R-Iowa, last week called on the administration to reject Japan’s Trans-Pacific Partnership (TPP) offer. Japan wants to exclude agricultural products — pork, beef, dairy, sugar, wheat, barley, rice and starch — from the final TPP agreement, said Nick Giordano, vice president and counsel for international affairs with National Pork Producers Council. If the U.S. “caves” to Japan’s demands, he said, “it will constitute a radical departure from past U.S. trade agreements.” Other participants in the 12-nation TPP negotiations will want to exclude products as well. Giordano spoke during a teleconference, which included Grassley and representatives from American Farm Bureau Federation (AFBF), National

Cattlemen’s Beef Association (NCBA), National Pork Producers Council, National Oilseed Processors Association and U.S. Wheat Associates. “We are very concerned about the message it sends if Japan uses these negotiations to maintain high tariffs and other barriers on its agricultural products,” said AFBF’s David Salmonsen. “We have urged, along with others in the ag community, that USTR (United States Trade Representative) hold the line in the TTP negotiations and work for tariff elimination. We view this as crucial to having these negotiations be useful for U.S. agriculture.” Grassley and 17 other legislators, including Sen. Mark Kirk, R-Highland Park, sent a letter last month to Ambassador Michael Froman urging him not to close negotiations without an “acceptable comprehensive agreement with Japan to eliminate tariff and nontariff

barriers in agriculture.” “As intended, the TPP will facilitate additional trade relationships with Asian-Pacific countries and set an important precedent for future trade agreements,” they wrote. “Most immediately, a positive outcome with Japan

on sensitive agricultural products will buoy the prospects for reaching an acceptable agreement with the EU in the Transatlantic Trade and Investment Partnership negotiations.” Bob McCan, NCBA president, said his organization

will support a TPP agreement as long as it’s based on full market access and “sound science.” “Anything else is not worth the effort and will set a bad precedent for trade for all commodities in all sectors of the economy,” he said.

exempt some vehicle owners, Young noted. “We’re putting this (stamp sale) off for a while,” Young told FarmWeek. “There is no timetable. We want to make sure all the changes are through (the legislature).” Currently, the law exempts OHVs used for farming as long as the vehicle is being used for activities associated with farming or livestock production. The exemptions included OHVs operated on land where the vehicle owner permanently lives. Under the current law, vehicles subject to the fee are ATVs, utility vehicles, offhighway motorcycles and golf carts. Also included are John Deere Gator-type vehicles used on many farms and

known officially in Illinois as recreational off-highway vehicles. During the postponement, Natural Resources Director Marc Miller stated he will seek public input on development of an off-highway riding program, including planning for public off-highway riding facilities in the state.

IDNR puts ATV stamps on hold BY KAY SHIPMAN FarmWeek

The Illinois Department of Natural Resources (IDNR) has postponed selling stamps for all-terrain vehicles (ATVs) until further notice, according to Chris Young, IDNR spokesman. A 2012 state law required IDNR to start issuing a new annual $15 stamp for most offhighway vehicles (OHVs) this year. Vehicle owners were to start displaying the stamps next month. However, legislation introduced in the General Assembly would change the law and

Illinois governs livestock sector with the LMFA

Since May 1997, Illinois has applied a statewide standard, known as the Livestock Management Facilities Act (LMFA), to its livestock sector. The LMFA governs siting, construction and aspects of livestock operations and manure handling systems, requires certification of livestock farmers and sets construction standards for lagoons. “Since its implementation, the law has provided a balanced approach in protecting the environment and allowing farmers the ability to continue to raise livestock on their farms,” said Kevin Semlow, Illinois Farm Bureau director of state legislation. A 1999 amendment expanded the state’s authority over facilities, and waste handling and disposal. County government boards received authority to request a public meeting on proposed facilities and to make nonbinding recommendations to the Illinois Department of Agriculture (IDOA). Public meetings are offered to give interested individuals consistent, solid background information and allow county boards a chance to form an opinion. The LMFA requires farmers with operations designed for more than 300 animal units to have manure management certification and to renew their certification every three years. Farmers with more than 300 animal units must attend an approved training session or pass a written IDOA test. Farmers with more than 1,000 animal units must attend an approved training session and pass a test. Farmers with facilities designed for a capacity of 1,000 or more animal units must develop a manure management plan. All farmers required to develop plans must maintain them for three years at their facilities and make them available for inspection by IDOA inspectors. Facilities with 5,000 or more animal units must submit manure plans to the IDOA for approval. — Kay Shipman

NATURAL RESOURCES

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ISWS seeking irrigation information from farmers BY KAY SHIPMAN FarmWeek

Irrigation water use information remains critical to state water planning efforts, members of Illinois Farm Bureauâ&#x20AC;&#x2122;s Conservation and Natural Resources Strength With Advisory Team (SWAT) heard last week. â&#x20AC;&#x153;We need to educate people about what happens,â&#x20AC;? said Steven Wilson, a groundwater hydrologist with the Illinois State Water Survey (ISWS). â&#x20AC;&#x153;We need to know how much water is being used from every aquifer and river. Thatâ&#x20AC;&#x2122;s important.â&#x20AC;? Wilson projected irrigatorsâ&#x20AC;&#x2122; data would be important if water use conflicts surface

in the future. â&#x20AC;&#x153;We can figure out whatâ&#x20AC;&#x2122;s going on in Illinois,â&#x20AC;? he said. â&#x20AC;&#x153;Planning and knowledge is why we do this. We want decisions made because of science, not as a result of politics or litigation.â&#x20AC;? Wilson and fellow ISWS scientists Walt Kelly and George Roadcap, as well as Ed Mehnert of the Illinois State Geological Survey, discussed several natural resource issues and answered team membersâ&#x20AC;&#x2122; questions. Wilson focused on a state law that requires reporting of water use from high capacity wells to the ISWS.

Agriculture reporting will start in 2015. Currently, Wilson and other ISWS scientists are developing methods to gather data and use estimates from different aspects. Wilson said he would like to have an electronic reporting system by fall 2015.

Starting this year, Wilson plans to begin seeking water usage information from farmers with center pivots. ISWS will soon report its estimate methodology to the Illinois Department of Natural Resources. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a law that says, â&#x20AC;&#x2DC;You have to report,â&#x20AC;&#x2122; and

weâ&#x20AC;&#x2122;re trying to make it as easy as we can,â&#x20AC;? Wilson told the farmers. Lauren Lurkins, IFB director of natural and environmental resources and the team coordinator, advised Wilson that farm data confidentiality is important. â&#x20AC;&#x153;There has to be an agreement that the data wonâ&#x20AC;&#x2122;t go anywhere beyond ISWS,â&#x20AC;? she said. â&#x20AC;&#x153;Our goal is to understand how much irrigation is out there,â&#x20AC;? Wilson said. â&#x20AC;&#x153;Our challenge is that many folks donâ&#x20AC;&#x2122;t know the law was implemented.â&#x20AC;? Wilson volunteered to discuss the law and water use reporting with county Farm Bureaus, irrigator groups and others.

Getting to the roots: NCGA forms Soil Health Partnership Illinois to begin water inventory in 2015 BY DANIEL GRANT FarmWeek

The National Corn Growers Association (NCGA) recently teamed up with agribusiness and conservation leaders to protect a key farm resource â&#x20AC;&#x201D; soil. NCGA formed the Soil Health Partnership (SHP) to identify, test and measure management practices that improve soil health and benefit farm operations. The SHP is supported by Monsanto and the Walton Family Foundation. The SHP will be advised by a team of industry experts, including USDA, The Nature Conservancy, the Environmental Defense Fund and university experts, who will form a science advisory council. â&#x20AC;&#x153;Soil health is critical to farm profits and it provides numerous environmental benefits, such as improved water quality, less soil erosion and a reduction of greenhouse gases,â&#x20AC;? Paul Bertels, NCGA vice president of production and utilization, said recently at the Commodity Classic. â&#x20AC;&#x153;Many farmers show innovative ways of management,â&#x20AC;? he continued. â&#x20AC;&#x153;We want to demonstrate thereâ&#x20AC;&#x2122;s no single approach to improve soil health.â&#x20AC;? The SHP recruited farmers around the country to demonstrate soil conservation practices, including reduced tillage systems, cover crops and advanced nutrient management, to establish research protocols and serve as a showcase for other farmers. â&#x20AC;&#x153;The best way to make this happen is to get farmers talking to other farmers,â&#x20AC;? Bartels said. â&#x20AC;&#x153;They want to see this (wide range of soil management

practices). There will be fieldsized demonstrations.â&#x20AC;? The SHP is a five-year initiative. This year its main focus will be the use of cover crops on a variety of farms. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a great need to better understand the potential for cover crops,â&#x20AC;? said Michael Doane, Monsanto sustainable business solutions lead. Farmers who improve the health of the soil on their farms could increase profits, productivity and sustainability of their operations, according to Sean McMahon, ag program director for The Nature Conservancy. â&#x20AC;&#x153;Improving soil health has the potential to rapidly improve water quality,â&#x20AC;? McMahon said. And improving water quality is a big issue as farmers look to reduce nitrogen runoff without facing increased regulations. â&#x20AC;&#x153;We need to benchmark these (soil health initiatives) and find ways to measure it,â&#x20AC;? said Tim Couser, a farmer from Nevada, Iowa, who will showcase the SHP on his farm. â&#x20AC;&#x153;The more roots you can get, the greater the yield potential.â&#x20AC;? Couser and his father, Bill, hope the SHP will document and demonstrate to the Environmental Protection Agency (EPA) soil management practices farmers use on their farms. There is concern EPA could implement regulations in the Mississippi River basin, similar to the Chesapeake Bay watershed, to deal with the issue of hypoxia. â&#x20AC;&#x153;We need no more regulations,â&#x20AC;? Couser said. â&#x20AC;&#x153;This is something weâ&#x20AC;&#x2122;re doing to address hypoxia thatâ&#x20AC;&#x2122;s voluntary.â&#x20AC;? For more information, visit {SoilHealthPartnership.org}.

Agricultural irrigators and other users of high capacity wells will begin reporting water inventories next year, according to Steve Wilson, a groundwater hydrologist with the Illinois State Water Survey (ISWS). Wilson noted state law was amended in 2010 with the mandatory reporting provision that takes effect in 2015. Under the law, irrigators can estimate their water withdrawals using a method approved by the ISWS if the farmers donâ&#x20AC;&#x2122;t meter water withdrawals. The ISWS annually reviews every public water supply and self-supplied industry in Illi-

nois for total gallons of water pumped from each groundwater well and surface water intake capable of pumping more than 100,000 gallons a day. Previously, Illinois irrigation water use has been estimated. The ISWS is working with farm groups and irrigators to develop a reporting approach that will be as straightforward and simple as possible, Wilson said. Over the next year, more information will be available about reporting and the ISWS expects to meet with irrigators to provide opportunity for questions and learning about the reporting approach. â&#x20AC;&#x201D; Kay Shipman

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PRODUCTION

FarmWeek Page 6 Monday, March 17, 2014

Analysts: PEDV outbreak tempers feed demand BY DANIEL GRANT FarmWeek

USDA last week maintained its forecast for a 22 percent increase in corn feed/residual use this year compared to a year ago. The Ag Department in its monthly world ag supply and demand estimates report pegged feed and residual use of corn this year at a healthy 5.3 billion bushels. But analysts believe that estimate will decline in the

FarmWeekNow.com

Listen to our RFD Radio ® interview with the National Pork Producers Council about PEDV at FarmWeekNow.com.

weeks and months ahead. The cattle industry remains cautious about expansion. The herd recently dipped to a 63year low. Meanwhile, the swine industry continues to deal with the effects of porcine epidemic diarrhea virus (PEDV), which thinned litters on a number of hog farms and

remains on the move. “This has become one of the most serious and devastating diseases our pig farmers have faced in decades,” said Karen Richter, president of the National Pork Board (NPB). “While it has absolutely no impact on food safety, it has clear implications for the pork industry in terms of supplying pork to consumers.” PEDV cases have been confirmed in 27 states, including Illinois, USDA reported. Steve Meyer, president of Paragon Economics and a pork checkoff consultant, estimated pork producers in recent months lost more than 5 million piglets to PEDV. “Losses of this magnitude will ultimately have a consumer impact through a reduction in supply,” Meyer said. Randy Martinson, market analyst with Progressive Ag, believes the effects of PEDV likely will show up in USDA’s quarterly hogs and pigs report March 28. “USDA likely will wait and see what’s in the hogs and pigs

report,” he said. “Once (inventory losses) are confirmed in the report, USDA will make adjustments to feed use. If PEDV picks up, feed demand will decrease.” Hog prices, on the other hand, continue to set new highs. The futures market currently suggests lean hog prices could average $112 per hundredweight from March through August compared to

$88 during the same time last year, according to Chris Hurt, Purdue University Extension economist. “PEDV could actually be a financial windfall for producers who are able to avoid the disease,” said Hurt, who noted futures prices suggest record industry revenues and the highest profit per head since 2005. NPB recently invested an

additional $650,000 in the fight against PEDV. The funding will be used for feed-related research to better understand transmission and biosecurity risks, the role feed may play in PEDV transmission and identification of sow immunity. Checkoff-funded PEDV research since June 2013 totals about $1.7 million.

USDA last week adjusted its supply and demand estimates for corn and soybeans to account for a strong export pace for both crops. The U.S. corn export estimate last week increased 25 million bushels to 1.625 billion bushels. If realized, corn exports this year would more than double the 731 million bushels sold on the world market in 2012-13. “The biggest adjustment (to the supply/demand numbers) is the continued increase in corn exports,” Randy Martin-

son, market analyst with Progressive Ag, said during a teleconference hosted by the Minneapolis Grain Exchange. “We’re starting to see more demand, and we’re slowly chewing our way through oldcrop corn stocks.” USDA last month raised corn exports by 150 million bushels. This month, the Ag Department lowered ending stocks of corn by 25 million bushels, to 1.456 billion bushels, to account for the most recent increase in exports. A similar situation occurred in the soybean market as USDA raised its export estimate and trimmed ending stocks. U.S. soy exports increased 20 million bushels to a record 1.53 billion bushels. Ending stocks subsequently declined 5 million bushels to a razor-thin 145 million bushels. “(Soybean) exports increased only 20 million bushels, which was kind of surprising,” Martinson said. “The export pace still is ahead of USDA expectations. We’re either looking at cancelations (of soy exports) or USDA will have to increase that.” Both markets rallied in recent weeks, but last week’s strong export estimates were offset by larger-than-expected world crop supplies. USDA raised global coarse grain production for 2013-14 by 1.4 million tons due in part to larger corn crops in Indonesia and China and a better than expected barley crop in Australia.

Elsewhere, Brazilian soybean production was reduced about 55 million bushels due to late season dryness. But South American corn crop estimates and soybean production in Argentina were left unchanged. “The trade was looking for more of a cut (of South American soy production),” Martinson said. Martinson anticipates crop prices could be pressured in coming months by reduced feed demand, particularly if porcine epidemic diarrhea virus continues to spread in the swine herd, and by increased imports of soybeans. USDA last week raised U.S. soy imports 5 million bushels to 35 million bushels. Many of the imports originate in South America and feed poultry and livestock industries in the southeast U.S. The price outlook was strong, though, as USDA raised its season-average price estimates by a quarter for beans and a dime for wheat. The price ranges were pegged at $12.20 to $13.75 per bushel for beans and $6.75 to $6.95 for wheat. The season average price estimate for corn was narrowed 5 cents to a range of $4.25 to $4.75. “We’ve had a pretty good run in the markets,” Martinson added. “Producers should look to reward it.” USDA last week left ending stocks of wheat unchanged at 558 million bushels. The trade looked for a 10 million bushel increase prior to the report. — Daniel Grant

Crop exports rise; ending stocks decline

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Farm Service Agency

Livestock records during severe weather — The Farm Service Agency urges livestock farmers to keep thorough records during natural disasters, including drought, blizzards and floods. The information should include livestock and feed losses. The new farm bill offers a farm safety net to help livestock farmers. FSA will provide information about new program requirements, updates and signups as the information becomes available.

YOUNG FARMERS

Page 7 Monday, March 17, 2014 FarmWeek

USDA enhances resources for young/beginning farmers BY DANIEL GRANT FarmWeek

USDA plans to upgrade and add resources to assist young and beginning farmers. The Ag Department last week announced it will expand its microloan program and make available more funds through its hoop house costshare program, among other initiatives aimed at young and beginning farmers. Ag Secretary Tom Vilsack believes attracting new talent to the ag industry and helping ensure the success of young farmers are vital to the industry. “We need more young people to get engaged in this business,” Vilsack said last month at the USDA Ag Outlook Forum. “We’re likely to see the continued aging of the farm population. The reality is, over time, those (veteran farmers) won’t be able to keep farming.” Preliminary results of the 2012 Ag Census showed the average age of U.S. farmers increased to 58.3 years. The census also showed the number of the largest farms (1,000 acres or more) and smallest farms (1 to 49 acres) increased the previous five years.

But the number of farms between 180 to 499 acres from 2007 to 2012 declined 2.4 percent, while total farms between 500 and 999 acres decreased 1.8 percent during that time. “The census showed more smaller operators are getting into the business and larger farms are expanding, which is good news,” Vilsack said. “But I have a deep concern for what happens in the middle. We need to expand our support for small and medium size farms.” USDA as a result will

increase its microloan program, which provides beginning and mid-size farmers access up to $35,000 in loans through a simplified application process. Since the program’s debut in 2013, USDA issued nearly 5,000 microloans totaling $97 million. USDA plans to invest another $15 million in its hoop house cost-share program. Since 2010, the program has been used for the development of more than 10,000 hoop houses. “We know for mid-size and smaller operations to succeed, (those farmers) need access to

capital,” Vilsack said during a teleconference. “Risk management also is key.” USDA is developing a whole farm insurance policy to better meet the needs of highly diversified farms, such as fruit and vegetable operations. USDA via the new farm bill also will provide $100 million the next five years for the Beginning Farmer and Rancher Development Program, $63 million for the Value-Added Producer Grant Program and $30 million annually for the Farmers Market and Local Food

Promotion Program. “Agriculture needs and requires diversity of the size and types of operations,” Vilsack added. The Ag Secretary was encouraged the rate of farmland loss in the U.S. slowed from 2007 to 2012, according to the census. About 72 million acres of farmland came out of production in the U.S. since 1982. But total land in farms as of 2012 (915 million acres) was down less than 1 percent compared to 2007.

Securing adequate land to grow crops and raise livestock remained the top challenge identified again this year in the American Farm Bureau Federation’s annual outlook survey of participants in the Young Farmers & Ranchers program. Twenty-two percent of respondents listed the issue as their top challenge followed by economic challenges, particularly profitability, which was identified by 15 percent of respondents. Other top concerns includ-

ed burdensome government regulations and red tape, 12 percent; availability of farm labor and related regulations, 9 percent; water availability and urbanization of farm land, 7 percent each; and health care availability and cost, 6 percent. The 22nd annual YF&R survey revealed 91 percent of those surveyed are more optimistic about farming and ranching than they were five years ago. The 2014 survey also showed 93 percent of the nation’s young

farmers and ranchers said they are better off than they were five years ago. Last year, 83 percent reported being better off. More than 91 percent consider themselves lifetime farmers, while 88 percent would like to see their children follow in their footsteps. The informal survey revealed 87 percent believe their children will be able to follow in their footsteps. Sixty-nine percent said they consider communicating with consumers a formal part of their jobs. Many use social media plat-

forms as a tool to accomplish this. Seventy-four percent turn to Facebook, 22 percent use Twitter, 16 percent maintain a farm blog or web page, and 13 percent use YouTube to post videos of their farms and ranches. For the first time, young farmers and ranchers were asked about their rural entrepreneurship efforts. Forty percent reported they started a new business in the last three years or plan to start one in the near future.

Young farmers worry about securing land

AROUND ILLINOIS

FarmWeek Page 8 Monday, March 17, 2014

Winter’s bite may hurt Illinois peaches, apples BY KAY SHIPMAN FarmWeek

Southern Illinois peach and apple growers speculate the harsh winter hurt their crops, but how much isn’t known. “There is damage due to the cold weather. We don’t know how much,” said Blake Kamp, orchard manager for Hagen Family Orchard near Golden Eagle in Calhoun County. “There is some damage to the peaches,” Kamp said. “Some varieties, there won’t be any peaches; some (varieties) will be fine, especially where the trees are on the flat or the hill.” Kamp’s assessment mirrored Betty Sirles’ of Rendle-

FarmWeekNow.com

Visit FarmWeekNow.com to learn more about apple and peach orchards across Illinois.

man Orchards outside Alto Pass in Union County. The Sirles were still assessing their trees, but expect to have a crop

of each variety — some more than others. Some varieties are more cold tolerant than others. “We will have peaches and apples,” Sirles said.

‘There is damage due to the cold weather. We don’t know how much.’ — Blake Kamp Hagen Family Orchard Calhoun County

The rolling hills of Union County helped spare some of the orchards’ trees, especially those on higher ground, she added. When the next stage of development will happen is anyone’s guess. “Hard telling with this weather when the trees will bloom,” Kamp said. “It could be any time — late March, April or even May.”

National Ag Week activities C

UMBERLAND — The Women’s Committee will sponsor a photo contest for ages 13 and older. Categories are “People and Personalities,” “Patriotic” and “Country Life.” Entries must be an 8x10 photo and taken in Cumberland County within the last five years. Deadline to submit photos is March 28. Call the Farm Bureau office at 849-3031 for more information. • The Women’s Committee will sponsor a coloring contest for children ages 3-11. Coloring contest sheets are available at the Farm Bureau office. Deadline to enter is March 28. FFINGHAM — Farm Bureau will sponsor agricultural quizzes on local radio stations including 97.9 XFM and KJ Country 102.3 March 23-29. Call the Farm Bureau office for more information. ACKSON — Farm Bureau will sponsor an “Agriculture — A World of

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Opportunity”-themed essay contest and an “Agriculture in Jackson County”-themed photo contest for ages 6-9, 10-13 and 14-17. Mail entries to Jackson County Farm Bureau, 220 N. 10th Street, Murphysboro, IL 62966, email to jacksonmgr@frontier.com or deliver to the Farm Bureau office by April 11. ANE — Farm Bureau will host ag days Tuesday-Thursday at Mooseheart Fieldhouse. Approximately 2,000 fourth graders will learn lessons about farming and food as they move through a series of 26 displays and presentations by farmers, commodity groups and ag businesses. Students will play farm-themed games, see livestock up close, and check out farm equipment from yesteryear to the present. ASALLE — The Young Leaders Committee will sponsor a coloring contest for fourth graders in the county. Entries will be judged on Tuesday. Call the Farm Bureau office at 4330371 for more information. • The Membership Committee will provide an agricultural display March 23-30 in the Peru Mall. ACON — Farm Bureau will host an Ag Day breakfast at 7 a.m. March 25 in the Pride of the Prairie Building at the Macon County Fairgrounds. Complimentary tickets are available at the Farm Bureau office or by calling Jennifer Fink at 877-2436 by Thursday. CHUYLER — The Schuyler Ag Day Com-

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mittee will host an Ag Day breakfast from 6 to 8 a.m. Friday at the Phoenix Opera House in Rushville. NION — Farm Bureau will sponsor an “Agriculture in Union County”-themed photo contest and an “Agriculture — A World of Opportunity”themed essay contest for ages 6-9, 10-13 and 14-17. Mail entries to Union County Farm Bureau, 104 W. Broad, P.O. Box F, Jonesboro, IL 62952, email to unionmgr@frontier.com or deliver to the Farm Bureau office by April 11. ERMILION — Farm Bureau will distribute 19,000 agriculture-themed placemats to 30 restaurants during Ag Week. The placemat project is co-sponsored by 13 area agribusinesses. ABASH — Farm Bureau will sponsor a farmer’s share breakfast from 7 to 9 a.m. March 25 at Hogg Heaven BBQ in Mount Carmel. Cost is 25 cents. INNEBAGOBOONE — Farm Bureau will sponsor a “365 Sunrises, 7 Billion Mouths to Feed”-themed poster contest for ages 3-12 in local schools. • Farm Bureau will sponsor a display at the Rockford Discovery Center Museum where children will see farm products and learn about locally grown products. • Diane Cleland, Winnebago-Boone ag literacy coordinator, will discuss this year’s ag week theme, “365 Sunrises, 7 billion Mouths to Feed,” on Channel 13 WREX Thursday.

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Datebook March 19 Cover crop workshop, 9 a.m. to noon, Douglas Hart Nature Center, Mattoon. Register by March 14. Call 217-345-3901, ext. 3. March 21 Cover crop workshop, 10 a.m. to noon, Bureau County Farm Bureau building, Princeton. March 26 Cover crop tour, 8 a.m. to noon, starting at McLean County Soil and Water Conservation District office, Normal. Register by March 21. Call 309452-0830, ext. 3.

CORRECTION

March 27 Cover crop workshop, 9 a.m. to noon, Fast Lanes Bowling Alley, Hoopeston. Register by March 25. Call 217-442-8511, ext. 3. March 28 Cover crop field day, 10 a.m., Ewing Demonstration Center, Ewing. To register, call 618-439-3178. April 3 Cover crop field tour, 9 a.m. to noon, Rendleman Orchards, Alto Pass. Register by March 28. Call 618-833-5666, ext. 3 or 618-684-3064, ext. 3.

In the March 10 edition of FarmWeek, U.S. Rep. Dave Camp of Michigan was incorrectly identified as a Democrat. He is a Republican.

FROM THE COUNTIES

Page 9 Monday, March 17, 2014 FarmWeek

UREAU — The Prime Timers Committee will sponsor a Stroke Detection Plus screening from 9 a.m. to 4:40 p.m. March 25 at the Farm Bureau building. Members will receive a discount. Call 877-732-8258 for an appointment. OOK — Agriculture in the Classroom will offer a paid summer internship for a student with at least 60 hours of undergraduate credit. Call Diane Merrion at 815-979-5458 or email aitc@ cookcfb.org for more information. UPAGE — General Foundation scholarships are available to high school seniors graduating this spring who plan to pursue a degree in an ag-related field of study. Call the Farm Bureau office at 668-8161 for more information. Deadline to apply is April 1. FFINGHAM — Farm Bureau will cosponsor a market outlook panel at 7 p.m. Tuesday at the Farm Bureau office. Dave Dickey, Illinois Public Media, will moderate. Kim Holsapple, Total Grain Marketing;

Jacquie Voeks, Stewart Peterson Group; and Sherman Newlin, Risk Management Commodities, will speak. Contact the Farm Bureau office for more information. • Farm Bureau invites the public to attend the open house of a newly constructed cattle feeding facility at Hartke Swine Center, Teutopolis, from noon to 7 p.m. Wednesday. Call the Farm Bureau office at 342-2103 for more information. ORD-IROQUOIS — Foundation scholarships are available for graduating seniors planning to continue their education in an agrelated field of study. Applications are available from high school guidance counselors, FFA advisers and the Farm Bureau office. Application deadline is April 1. For more information call the Farm Bureau office at 1-800-4240756. RUNDY — Foundation scholarship applications are available at {grundycfb.com} or the Farm Bureau office. Application deadline is Monday. Call the Farm Bureau office at 942-

Timely tips and news about the latest research on soybean production in Illinois now sits just a mouse click away. The Illinois Soybean Association (ISA) recently launched the website{ILSoyAdvisor.com}. The website provides a one-stop shop for soybean producers in search of the latest production research, articles and recommendations about growing soybeans, according to Bill Raben, ISA chairman and a soybean grower from Ridgway. The new site also features a discussion forum so farmers can share stories, ask questions and connect with others, along with real-time ag information, technical resources, case studies, videos, blogging, tools and more. “The site gets practical

information on increasing yields into the hands of growers,” said Don Guinnip, ISA Production Committee chairman and a soybean grower from Marshall. “It connects farmers like me with industry experts, certified crop advisors, university researchers and other farmers so we can exchange production tips and advice.” ISA directors showcased the website to more than 300 attendees at the ISA Soybean Summit earlier this month in Peoria. The site focuses on boosting Illinois soybean yields and profitability through collaboration and the latest management practices. Illinois farmers last year produced more soybeans than any state in the nation.

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New website assists Illinois soybean growers

Tuesday: • “FarmWeek: The Early Word” • Eric Schmidt, EJS Weather: ag weather • Tom Husek, Illinois Agricultural Auditing Association: tax planning Wednesday: • Tim Schweizer, Illinois Department of Natural Resources: April 5 trout fishing season opens, spring turkey season • Jim Bower, Bower Trading • Lori Laughlin, Illinois Farm Bureau: Illinois Farm

Families tour Thursday: • Illinois Pork Producers Association representative • Ivan Dozier, Natural Resources Conservation Service • Rich Guebert Jr., IFB president Friday: • Dan Adcock, WinField • Monica Nyman, St. Louis Dairy Council: National School Breakfast Week • Jim Fraley, IFB: good fences make good neighbors

To find a radio station near you that carries the RFD Radio Network®, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”

6400 for more information. ACKSON — The Young Farmers tractor drive will begin at 10 a.m. March 22 at Canning Auction in Murphysboro. All proceeds will benefit Cardinal Glennon Children’s Center. ASALLE — Foundation scholarships are available for a graduating high school senior and a current college student planning to continue or is currently enrolled in an ag-related field of study. Applications are available at the Farm Bureau office or by visiting {lasallecfb.org}. Application deadline is Friday. ONTGOMERY — Farm Bureau will host a landowners information meeting at 6:30 p.m. Wednesday at the Farm Bureau office. Christopher Byron, Byron Gerber Petri & Kalb LLC, will answer questions regarding the Ameren expansion in Bond and Montgomery counties. Call the Farm Bureau office at 532-6171 for more information. EORIA — Farm Bureau will sponsor an equine endurance riding pro-

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gram at 6:30 p.m. March 24 at the Farm Bureau building. Nicole Mauser-Storer, endurance race participant, will speak. Call the Farm Bureau office at 686-7070 for more information. • Farm Bureau will host Stroke Detection Plus Health screenings from 9 a.m. to 4:30 p.m. March 26 at the Farm Bureau building. Members will receive a discount. Call 1-877732-8258 for an appointment. ANGAMON — The Women’s Committee will sponsor a spring fling at 5:30 p.m. Thursday at the Farm Bureau office for female Farm Bureau members. Call the Farm Bureau office at 753-5200 to register by Wednesday. HELBY — Young Farmers will co-host a farm-city breakfast from 6 to 8 a.m. March 27 at the Shelby County 4-H Center, Shelbyville. Cost is $1. Call 7742151 or email shelbycofb@ consolidated.net for reservations. ABASH — Farm Bureau will co-sponsor an agriculture appreciation lunch from 11 a.m. to 1 p.m.

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March 27 at the Farm Bureau building. ASHINGTON — Farm Bureau will sponsor a legislative breakfast at 8:30 a.m. April 5 at Little Nashville Restaurant in Nashville. U.S. Rep. John Shimkus, R-Collinsville; Sen. David Luechtefeld, ROkawville; Sen. Kyle McCarter, R-Lebanon; Rep. Charles Meier, R-Okawville; and Rep. Mike Bost, R-Murphysboro, will be present to provide updates and answer questions. Call the Farm Bureau office at 327-3081 for reservations or more information by March 28. ILL — Farm Bureau will host a Viewpoint meeting at 6:45 p.m. April 1 at the Farm Bureau office. Ross Korves, economist and policy analyst, will speak. Call the Farm Bureau office at 727-4811 to register by March 25.

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

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PROFITABILITY

FarmWeek Page 10 Monday, March 17, 2014

Examining Argentina’s currency ‘crisis’ adds market perspective Over the last couple of months, news reports have discussed emerging market currency crises said to be taking place. In actuality, there has not been a systemic currency crisis as implied, but rather several currencies that have individually fallen — by moderate amounts — each to a different extent. The Argentine peso dropped the most, and is worth examining for the purpose of understanding currency declines in other corn, soybean and wheat-producing countries. Currencies fall as a result of excess Kel Kelly money printing. Argentina has expanded its money supply during the last decade and its consumer prices rose twice as fast as American prices. The Argentine

BY KEL KELLY

peso therefore needed to fall by half against the dollar to keep relative prices between the two countries equal. Such adjustments occur incrementally and over time in the market place. If goods cost twice as much in Argentina as in the U.S., people will buy American goods and sell them in Argentina for twice the price. The more this occurs, the more the dollar is bought and the peso is sold until prices equalize between the two countries. Separately, as the supply of pesos grows relative to dollars, currency traders value the peso lower and the more limited dollars higher. But the peso/dollar exchange rate was slow to keep pace over the last 10 years with the change in prices between the two countries because the Argentine government slowed the peso’s fall by buying pesos and selling dollars. In early 2014, however, Argentina began to run low on dollars (since only the

U.S. creates dollars). As a result, the Argentine government decided to stop manipulating the currency and let it fall to its true market price. Therefore, the peso’s fall is not in itself a crisis, but rather a natural reaction to a cessation of currency manipulation. The reason for the fall to begin with is the printing of too much money by the Argentine central bank. The fall in the peso has made Argentine corn, soybeans and wheat about 25 percent cheaper than American products in the last six months. But since Argentina has also experienced about 10 percent inflation in that time period, real relative prices have fallen about 15 percent. There should likely be no effect on U.S. supply or prices.

Kel Kelly is GROWMARK’s economic and market research manager. His email address is kkelly@growmark.com.

Industry representatives see big year ahead for cellulosic ethanol BY DEANA STROISCH FarmWeek

At least four cellulosic ethanol plants are expected to come online this year — three in Iowa and one in Kansas. And it’s been a long time coming. “How many years have we all sat around and said in five years we’re going to see some commercial production, in two years, in one year?” said Chris Standlee, executive vice president of Abengoa Bioenergy. “I am thrilled to finally be able to say that this is the pivotal year for second-generation ethanol in the United States and perhaps in the world.” Standlee and representatives from three other companies — DuPont, POET-DSM Advanced Biofuels and Quad

County Corn Processors — gave brief presentations on their projects at the recent National Ethanol Conference in Orlando. Here’s a look at what’s planned: Abengoa Bioenergy Abengoa is “within just a few weeks” of beginning startup of its full-scale commercial biomass-to-ethanol plant in Hugoton, Kansas. The facility will be able to produce 25 million gallons of ethanol a year from biomass, including corn stover and switchgrass. It also can produce 21 megawatts of electricity from a biomass boiler. Construction on the plant, located on 400 acres in the “extreme southwest corner of Kansas,” began in July. “Now we are within just a

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.25-$74.00 $52.11 40 lbs. (cash) $107.00-$120.00 $114.39 Recipts

This Week 59,118 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 73,968

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $110.43 $103.08 $7.35 $81.72 $76.28 $5.44

USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers

This week $147.96 $148.05

Prev. week $148.45 $147.97

Change -$0.49 $0.08

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 $173.88 $172.48 $1.40

Lamb prices Negotiated, wooled and shorn, 126-168 lbs. for 140-178 $/cwt. (wtd. ave. 164.09); 171-192 lbs. for 152.30-167 $/cwt. (wtd. ave. 158.89)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 3/6/2014 55.3 15.8 36.8 2/27/2014 36.3 22.4 41.6 Last year 17.8 28.7 14.5 Season total 1410.6 895.2 745.9 Previous season total 1164.0 721.6 379.0 USDA projected total 1495 1125 1450 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

A new ethanol plant being built by POET-DSM Advanced Biofuels takes shape. The plant represents the company’s first commercial cellulosic ethanol facility in Emmetsburg, Iowa. Called “Project Liberty,” the plant will eventually produce 25 million gallons of ethanol per year. (Photo courtesy of POET-DSM)

few weeks of beginning a startup of the ethanol portion of the facility,” Standlee said. “We believe this is a major milestone for us and for the cellulosic industry in general.” The plant is expected to generate 76 permanent jobs and 1,000 construction jobs. DuPont DuPont officials expect

their cellulosic ethanol facility in Nevada, Iowa, to be operational later this year. Construction began in 2012. The plant, which will be able to produce 30 million gallons of ethanol a year, will be fueled by about 375,000 tons of corn stover biomass. DuPont is expected to invest about $225 million in the project, according to the company. The plant is expected to generate 85 permanent jobs and 1,000 construction jobs. POET-DSM Advanced Biofuels LLC POET and Royal DSM teamed up to construct a commercial-scale, cellulosic ethanol plant in Emmetsburg, Iowa, near its corn ethanol plant. Called “Project Liberty,” the plant will be able to produce 20 million gallons of ethanol a year using crop residue, such as corncobs, leaves and husks. Eventually, the plant’s capacity will increase to 25 million gallons a year. Steve Hartig, general manager of licensing for POET-DSM Advanced Biofuels LLC, said the

cellulosic ethanol plant should be up and running by the end of the second quarter of this year. Quad County Corn Processors Quad County Corn Processors is constructing a biorefinery in Galva, Iowa, that will convert corn kernel fiber into cellulosic ethanol. The project, called Adding Cellulosic Ethanol, will be located next to the company’s existing 35 million gallon corn ethanol plant. It is expected to produce 2 million gallons of cellulosic ethanol from a feedstock already on site. Delayne Johnson, Quad County Corn Processors chief executive officer, said his company was looking at ways to add value to its corn. The new plant will allow the company to produce cellulosic ethanol, add 6 percent to its yield and produce a higher protein feed product than in the past. The new plant is expected to create five full-time jobs and 55 to 75 construction jobs. Johnson said the plant should be operational by summer.

Dairy margins improve; retail milk prices inch higher

BY DANIEL GRANT FarmWeek

Milk prices at the farm level last month reached an all-time high of $23.35 per hundredweight. In fact, the most recent Class III average milk price was 25 percent higher than a year ago, according to Jim Fraley, Illinois Farm Bureau livestock program director and manager of the Illinois Milk Producers Association. But that doesn’t mean consumers will see a similar spike in milk prices at the retail level. Retailers likely will absorb some of the higher milk costs. Meanwhile, the annual “spring flush” could boost domestic milk supplies within the next couple months, Fraley told FarmWeek. “We’ve seen a 25 percent increase (in Class III milk prices) compared to last year,” he said. “But that doesn’t mean milk prices will increase 25 percent at the retail case.” Retailers typically adjust to tighter margins to keep the price of staple products, such as milk, as stable as possible. The retail average price of nonfat skim milk from January to February increased from $2.70 to $2.73 per gallon in Chicago and from $3.59 to $3.66 per gallon in Des Moines. Elsewhere, the price topped $4 per gallon.

So what’s behind the record milk prices and recent rise in prices at the dairy case? Supplies of dairy products tightened in recent months due in part to strong exports and record beef prices that encouraged some dairy farmers to thin their herds. The portion of U.S. dairy products exported in the last decade more than doubled from 6 percent per year to 15.5 percent in 2013, according to the U.S. Dairy Export Council. “We export some fluid product, but most of it is dried product or cheese,” Fraley said. “One of the other factors (contributing to the recent dairy price increase) is we’re at record beef prices,” he continued. “Dairy cows right now are very valuable.” Cull cow prices in recent months jumped to $1.05 per pound, which is much higher than typical prices. Dairy cows often are processed for lean trim and hamburger products. The harsh winter was a challenge for dairy producers, but it didn’t have a big impact on milk production or prices. “If you keep (dairy cattle) fed, watered and give them a dry place to lay down, they do just fine (in cold conditions),” Fraley added. “It’s hot summers that cause the biggest drop in production.”

PROFITABILITY

Page 11 Monday, March 17, 2014 FarmWeek

CASH STRATEGIST

Important USDA reports coming

As the calendar moves toward the end of March, there are a number of USDA reports coming that could have major market repercussions. Grain traders immediately think about the grain stocks and prospective plantings report coming March 31. But they should also take note of the livestock reports that will be coming toward month’s end to gauge the implications they might have for grain demand. The livestock reports are first up with the monthly cattle on feed and cold storage reports coming March 21. We don’t expect any huge “fireworks” from the cattle report. But the unexpectedly large placement number for January reported last month suggests paying close attention to the placements on this month’s report. The trade may be more interested in the cold storage report. With hog futures leading the cash market higher since the beginning of the year, the industry will be looking to see how much pork output has been siphoned off into freezers due to profitable hedging opportunities. Depending on the level of pork storage, those numbers could offer insight into the strength of consumer demand. But the quarterly hogs and pigs report to be released March 28 may be the most important report this month. Since early February, market talk in the pork industry has focused on porcine epidemic diarrhea virus (PEDV). We know how many cases

have been reported. That is tabulated by the National Animal Laboratory Network. The number has doubled since the end of 2013. But producers aren’t required to report cases. Nor do they report the number of pigs impacted on the reports. That has left the industry with little hard data to guide expectations for output in the months ahead, summer in particular. We’ve heard estimates ranging from a 5 percent to a 20 percent reduction in slaughter. That’s a huge range. The report should help clarify the situation, both the number of pigs born and the number in inventory in the lighter weight groupings. That should bring some clarity to slaughter projections and potential pork output, both sadly missing at the moment. On the last day of the month, USDA will release the quarterly grain stocks and prospective planting estimates. The former should offer better clarity on the pace of corn demand, and maybe better insight into wheat feeding. For soybeans, because demand is known, the number offers insight into the size of last year’s crop. That’s important because the supply remains relatively tight. Looking ahead, most will focus on the planting data. Given the total acreage base and increase in prices into the survey collection, we’d expect the report to offer some different planting estimates than those USDA released at its Outlook Forum. Given the price relationships, there’s risk soybean plantings will be larger — maybe by a lot — than the 79.5 million acres USDA forecast at the forum.

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Corn Strategy

ü2013 crop: Use rallies to get sales up to 80 percent. If the corn is stored on farm, consider using a hedge-to-arrive contract for a May/June delivery. Basis should improve with the Mississippi River re-opening, along with demand to fill export orders. A close under $4.75 on May futures would indicate a short-term trend has turned down. Timing counts suggest prices could decline into late May once the trend changes. ü2014 crop: Use December futures trading above $4.75 for making catch-up sales. We are still considering another small sale; check the Hotline frequently. vFundamentals: Emotion surrounding the Ukrainian crisis continues to dominate dayto-day trade with corn mostly taking its lead from the wheat market. Producers continue to price inventory on market rally days. These higher prices also appear to be cutting into activity in the export market to some degree. The looming USDA reports will have increasing influence on day-to-day action.

Cents per bu.

Soybean Strategy

ü2013 crop: Chinese cancellation of South American cargoes and a steady decline in their cash market should undermine old-crop soybean prices. We do not recommend owning inventory. ü2014 crop: Use strength to get sales to recommendation. The turn down in oldcrop prices and prospects for expanded plantings should cap upside potential near $12 on November futures. vFundamentals: Chinese soybean cancellation talk exploded last week. It’s all but certain they cancelled 15 cargoes out of Brazil. Talk indicates they want to cancel or delay another 25. The cash basis at Brazil’s main port, Paranagua, dropped 30 cents last week, with the price of soybeans being loaded 21 cents under Chicago futures. By comparison, the Gulf is nearly 85 cents over Chicago futures. CONAB projected a smaller than expected 85.4 million metric ton crop, but also said it expects better weather to lift

the projection next month. Private estimates have increased the size of the Argentine crop.

Wheat Strategy

ü2013 crop: Chicago wheat has posted gains for six consecutive weeks. Speculators have added to their long position while waiting for the reaction to Crimea’s vote Sunday on whether it will join Russia. The unwinding of long corn/short wheat spreads has also lent support. ü2014 crop: Leave an order to price another 15 percent of the crop if Chicago July futures hit $6.99. If weekend news out

of Ukraine is not friendly to prices, those that move wheat at harvest may consider pricing up to 50 percent. vFundamentals: Wheat has had to compete with corn for freight space and the latest runup in the futures market has kept interest away from soft wheat for export. China and Egypt seem comfortable enough with their stocks to hold off on substantial purchases in the near term. ûFail-safe: Use a stop order at $6.73 Chicago July wheat to trigger the 15 percent sale if the $6.99 offer is not hit.

PERSPECTIVES

FarmWeek Page 12 Monday, March 17, 2014

Put anhydrous safety on spring to-do list

eady or not, spring is just around the corner. We’ve spent the winter getting our equipment ready. But how ready are you or your employees for applying anhydrous ammonia this spring? When is the last time you took safety training or refreshed your training? We all know we need to take precautions handling anhydrous and working with nurse tanks. With that in mind, be sure your anhydrous safety knowledge is ready when the weather is right. Farmers who own their own anhydrous storage or nurse tanks are required to take safety training. Illinois Farm CHAD Bureau also recomSCHUTZ mends that any farmer who handles anhydrous voluntarily take the safety training. Earlier this month, I attended an anhydrous safety school class offered by the Illinois Fertilizer and Chemical Association (IFCA), but anhydrous safety training is also as close as the nearest computer. You and your employees may review your anhydrous knowledge with a free online safety video program at {learning.ifca.com}. The voluntary project was funded by a grant from the Illinois Nutrient Research and Education Council (NREC), which receives money from a 75-cent assessment per ton of fertilizer sold in the state. In addition to viewing the video, individuals will receive a practice quiz after each of the five training modules and a final test. After successfully completing the training, each participant will be emailed a completion certificate. Most of the information will be familiar, and the quiz will just

An Evergreen FS employee wears safety equipment while he attaches hoses to an anhydrous ammonia tank. (FarmWeek file photo)

reinforce what you learned. The training program would take about an hour to complete. It involves answering about 20 questions. Individuals are able to stop the program and return without having to start at the beginning. Those taking the training program are asked to submit their names and email addresses so they can receive certificates. IFCA worked on the project with IFB, the Illinois Corn Growers Association and Illinois Department of Agriculture. IFB’s audio-visual staff filmed the safety footage near Shirley using Evergreen FS equipment. Here is an example of the kind of information you will learn in the training to help prevent anhydrous accidents: • Inspect anhydrous ammonia hoses prior to each use. Look for cracks, cuts, rubs and soft spots as well as “seepage” near the couplers. Always purge anhydrous ammonia from the hose or system prior to inspection. • Perform regularly scheduled maintenance on the toolbar’s breakaway coupler, and visually inspect it

before each use. Check to ensure hoses are the correct length for the type of nurse tank being used. • Remember that most running gears are NOT designed for tandem use in the field. • When applying anhydrous, always use the safety chains provided on the nurse tank along with the attached hitch pin and safety clip to prevent hoses from stretching and breaking. • Before pulling a nurse tank on a roadway, purge all anhydrous ammonia from the toolbar and hoses, and secure the end valves of the hoses to the parking plugs on the toolbar. Attach the safety chains, hitch pin and safety clip. Drive 25 mph or slower. • If an accident occurs, the applicator who was in control of the ammonia at the time must immediately report the incident to regulatory agencies — within 15 minutes if possible. Farmers are included in the reporting requirement.

Chad Schutz of White Hall represents District 15 on the Illinois Farm Bureau Board of Directors.

What do you think of Common Core?

As the Education Director for the Illinois Agriculture in the Classroom (IAITC) program, a school board member, a former teacher and a parent, I initially found the question to be very flattering. Someone really wants to know what I think. But then it occurred to me that this instinct to categorize people in either the pro- or antiCommon Core camp is certainly very strong. Debate often leads to the same question: “Are you for or against Common Core?” We’ve come to realize that regardless of where you or I stand on this issue, the ones caught in the “meat grinder” are the teachers and students. At the end of the day, we all want students to have the very best education. We also know that the classroom teacher plays KEVIN DAUGHERTY the biggest role in educating our children. So where does the IAITC program stand on the issue of Common Core State Standards (CCSS) and the Next Generation Science Standards (NGSS)? We don’t think of ourselves as standing on either side. You see, to us, it’s not about standards. It is about good teaching. Allow me to explain. We are educators, and we’re passionate about empowering teachers with solid research and best practices. We think all teachers should have access to the things that make up good and effective teaching, specifically about subjects that they have little knowledge about. We’ve often stated traditional high school ag programs are agricultural education; we focus on education about agriculture. You’ll see our materials linked directly to science, language arts, social studies and math. We work to showcase agriculture as a springboard to help students use hands-on and minds-on experiences that relate to agriculture. We place our materials online at {aginthe classroom.org} and create formats that are easily accessible for students, such as our materials on smartboards and tablets. We work to showcase agricultural careers in our Ag Mags and lessons, not just to help with the focus of Common Core, but because we’ve felt it was important to feature various careers in agriculture since 1994! These strategies are simply about good and effective teaching. Providing students and teachers with facts, figures, lessons, books and activities about the No. 1 industry in Illinois is significant. Even though CCSS and NGSS are nationwide standards, your district’s curriculum can be local and specific. Agriculture and Agriculture in the Classroom can certainly be a part of both! Again, good teaching is good teaching. We simply want to help teachers teach better, and students learn better, and we strive to provide both with the free materials and supplemental training generously supported by the IAA Foundation and your local County Agriculture Literacy Program and Farm Bureau. What better way to learn than to explore the links to food, fiber and fuel around you? If you know teachers and students who could benefit from education about the agriculture around them, let us know. We’ll be happy to put them in touch with their local contact!

Kevin Daugherty serves as Illinois Farm Bureau education director.