Farmweek march 2, 2015

Federal regulations. Trade.

Illinois’ budget. IFB members got issues updates at GALC. pages 2-3

NASS released staggering county yields with 34 counties producing more than 200-bushel corn. page 4

A record 7,600 people attended the 20th Commodity Classic to visit with a record 355 exhibitors. page 6

Rauner to farmers: ‘I need you’ Monday, March 2, 2015

Two sections Volume 43, No. 9

BY KAY SHIPMAN FarmWeek

Gov. Bruce Rauner warned farmers last week he wants their support on the tough choices and votes ahead “to change the system” and restore the state’s fiscal situation.

“You guys are what Illinois is about.

I need you,” Rauner told Farm Bureau leaders attending the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield.

He became the first governor in recent memory to address the conference.

Rauner delivered a 10-minute enthusiastic message before attending his first cabinet meeting at the Capitol.

Merging messages from his recent State of the State and state budget addresses, the governor briefly touched on his stance for voters’ right to decide on union representation.

“I’m not anti-union; I’m anti-conflict of interest,” Rauner said. Union leaders who make campaign contributions shouldn’t “sit across the table” from those same elected officials and state what they want in union pensions, he added.

The governor told far mers he wants to open markets around the world, “make sure property taxes stop going through the roof ” and provide the best schools for the

state’s students.

“I need you to write letters and make calls” to legislators, Rauner said. “Politicians are scared of far mers.”

But far mers also will need “to let good legislators know we’ve got their backs,” Rauner emphasized.

“I need Illinois to be competitive.

We’re losing … and if we keep losing, we’ll never fund pensions, we’ll never fund schools,” he continued.

Wa t c h R a u n e r ’s s p e e c h i n the Video section of Far m We e k N o w. c o m .

County yields improve ARC-CO payment estimate Gov. Rauner speaks to Farm Bureau members. (Photo by Cyndi Cook)

BY JOANIE STIERS FarmWeek

Payments between $20 and $80 per corn base acre may be common for farmers throughout northern Illinois who elect Agricultural Risk Coverage-County (ARC-CO) if current predictions hold, according to Illinois Farm Bureau estimations.

Farmers will learn exact

Read farmers’ views page 2

Periodicals: Time Valued

payments in about six months. In the meantime, the recent release of county yield data from the National Agricultural Statistics Service offers a more precise

estimate for half the equation to determine ARC-CO payments before program elections end March 31.

Estimates show a few northern Illinois counties with low yield triggers may be on schedule to earn a maximum ARCCO payment (10 percent of the revenue guarantee) for 2014. Yet, most of central and southern parts of Illinois would receive no corn payment in this scenario due to high yields, said Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management. Only a handful of Illinois counties may receive soybean payments, unless prices drop significantly.

“These yields are not final yields that FSA (Farm Service Agency) will use to calculate payment, but they get us very close,” Yoder said. “It provides great analysis as farmers and landowners make this decision on ARC/PLC (Price Loss Coverage). It really shows what the ‘year one’ potential could be.”

The deadline to reallocate base acres and update payment yield has been extended to March 31. Farmers also have until March 31 to elect PLC or ARC at the county or individual levels. For a vast majority

of farmers, ARC-CO surfaces as the most popular option, Yoder said. This election provides multiple year shallow revenue loss coverage.

The University of Illinois reported that for 2014, PLC may make modest per-acre payments for corn, but payments are unlikely for soybeans and wheat. PLC is a multiple-year disaster price

loss coverage, Yoder said.

This option generally pays when prices turn bearish.

Yoder predicts NASS yields will be within 4 bushels of the county yields FSA will actually use to calculate the 2014 ARC-CO payments under the 2014 farm bill.

Data to determine final 2014 ARC-CO payments, if any, will be available in Sep-

tember, Yoder said. This follows the end of the 2014 crop marketing year on Aug. 31.

USDA, on Feb. 10, estimated the market year average price at $3.65 for corn and $10.20 for soybeans.

View a county-by-county chart of estimated 2014 ARCCO payments for corn and soybeans at {http://bit.ly/ 1BAtsSU}.

FILLING UP WITH FOOD DONATIONS

Illinois Farm Bureau Young Leaders, from left, Rachel Meinhart, Reid Thompson, Matthew Starr, Chris Otten, Marc Bremer and Daniel Gvillo organize food donations for local food banks collected at last week’s Governmental Affairs Leadership Conference. Young Leaders recently received $2,500 from Chevrolet to donate to food banks. They earned the grant for raising the most money — $1.03 million — and tallying the most volunteer hours — 4,043 — among all state Farm Bureaus for the Harvest for All project. (Photo by Cyndi Cook)

www.facebook.com/illfarmbureau

Quick Takes

FarmWeek • Page 2 • Monday, March 2, 2015

FORMER STATE REPRESENTATIVE JOINS IDOT — Gov. Bruce Rauner recently named Rich Brauer, a former Republican state representative from Petersburg, assistant secretary of the Illinois Department of Transportation (IDOT). Brauer, who served 13 years in the House, resigned his seat prior to his agency appointment.

Brauer and his family had owned OASIS Farms, a farrow-to-finish operation in Oakford. He served as a past president of the Illinois Pork Producers and on the National Pork Producers board of directors.

IAITC MEETS FUNDRAISING GOAL — Illinois Farm Bureau members receive an A+ when it comes to Agriculture in the Classroom fundraising. Members raised $733,000, exceeding the 2014 fundraising goal of $698,000.

Susan Moore, IAA Foundation director, said members contributed $144,695 through fundraising events and $588,537 through major donations. As a result, County Coalition grants expanded to 69 — the largest number to date.

The funds will also go toward book grants, teacher grants and Summer Ag Institute support. Ag Mags remain free to Illinois teachers.

BUNTING MARKS PAL GRADUATION — Livingston County Farm Bureau President Jason Bunting joined nine other young farmers in graduating in the seventh American Farm Bureau Federation (AFBF) Partners in Agricultural Leadership class.

PAL, a two-year program, helps agricultural leaders accelerate their leadership abilities and solidify their roles as advocates for agriculture. Bunting, past chairman of the Illinois Farm Bureau Young Leader Committee, was the only Illinois class member.

PAL participants must have previously developed leadership skills built through participating in at least one Young Farmers & Ranchers program, including AFBF competitive events.

NEW GMO FACT SHEETS CREATED — Looking for the latest information about the economic impact of GMOs? The American Farm Bureau Federation has created some new, state-specific fact sheets.

Later this month, Congress plans to tackle an updated Safe and Accurate Food Labeling Act. The House Agriculture Committee also plans to hold GMO hearings in March.

Protecting farmers’ ability to use biotech plant varieties and other innovative technologies ranks as a top Strategic Action Plan issue for Farm Bureau. Check out the Illinois fact sheet at {http://bit.ly/1MRIuWZ}.

(ISSN0197-6680) Vol. 43 No. 9 March 2, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

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EPA, water issues top regulatory threats

BY JOANIE STIERS FarmWeek

Like $900-per-ton anhydrous ammonia, regulatory threats to agriculture can eat into pocketbooks quickly, a Washington, D.C., attorney warns.

Gary Baise, a partner at OFW Law in Washington, presented a session on federal regulatory issues at the Governmental Affairs Leadership ConGary Baise ference last week in Springfield. He referenced criminalization of agriculture, social opposition to GMOs and international trade among the industry’s most pressing challenges.

“These threats are from

people who do not understand agriculture,” said Baise, who passionately delivered statistics to demonstrate agriculture’s tremendous strides in efficiency and production.

“One reason there is so much fear in what we do is they don’t understand the sustainability in agriculture.”

Baise named the Clean Water Act and the Environmental Protection Agency’s (EPA) interpretation of agricultural runoff as the greatest immediate threat to American agriculture. He remains adamant that the long-time agricultural stormwater runoff exemption in the federal Clean Water Act should be upheld. Tile drainage should fall into that category, he said.

“EPA believes that it has the right under the Clean Water Act to control the

water running off of your land. I don’t think that’s what the Clean Water Act stands for. I oppose that,” he said.

“There are lots of things we can do to improve the environment, and as agriculture we should, and we have and we should continue doing it.”

Baise routinely cites EPA overreach in his weekly “Defending Agriculture” column for Farm Futures magazine. At the conference, he referenced threats in Eastern states to shut down acres of farmland, which he described as an attempt to take property without due process of law.

“I think there are grave threats facing us,” Baise said.

“I think we can overcome them, but we have a government bureaucracy in Washington, D.C., that is opposed to the way we conduct agricultural practices in the Midwest.”

that U.S. Free Trade Agreement (FTA) partners buy nearly half of U.S. exports, even though these countries represent just 10 percent of global gross domestic product. Countries like Australia have purchased 40 percent more U.S. imports since the established FTA, Smith reported. Chile and Morocco increased imports threefold.

“Free Trade Agreements can make big markets even out of small economies,” he said.

Worldwide, 398 FTAs are in place today, Smith said. Of that, the U.S. has FTAs with just 20 countries.

The U.S. Chamber of Commerce currently works with Congress and the White House to encourage action on several trade agreements, such as the Trans-Pacific Partnership with Asia and TransAtlantic Partnership with Europe. Each could generate 700,000 new American jobs, including around 30,000 in Illinois, Smith said.

In particular, the partnership with the European

Union (EU) could become a “gold standard” for future trade agreements, Nelsen explained. This “21st Century Agreement” joins high standards of two mature countries. The agreement could establish more business opportunities, such as through tariff elimination, and consistent trade rules for products such as cars, food and medical devices. In addition, a better regulatory environment would set a new global standard, she said.

The U.S.-EU Trans-Atlantic Trade and Investment Partnership completed its eighth round of negotiations in early February. Establishment of this agreement within two years would be an optimistic prediction, Nelsen said.

In general, Smith said the U.S. needs to expand trade and go where consumers reside.

About 95 percent of the world’s consumers live outside our nation’s borders, he said.

“Trade can be one of those important national economic stories that can be the ‘next big thing,’” Smith said.

Trade agreements open U.S. to world’s consumers

BY JOANIE STIERS FarmWeek

Free trade can generate big markets from small economies, and even mature ones, attendees learned at the Illinois Farm Bureau’s Governmental Affairs Leadership Conference.

“There are an awful lot of opportunities on the horizon for some great trade, whether with Europe, with Asia or with both,” said Tamara Nelsen, IFB senior director of commodities.

Nelsen presented a work session on trade with Cholly Smith of the U.S. Chamber of Commerce at the conference last week in Springfield.

Trade proves an important part of IlliCholly Smith nois agriculture as the state’s farmers export nearly one-third of their corn, soybean and pork products.

Smith told the audience

Farmers attending the Governmental Affairs Leadership Conference last week shared their farm bill sign-up decisions. All four farmers updated base acres and payment yields.

What program(s) have you elected and why?

FarmWeekNow.com Visit FarmWeekNow.com for online and video coverage of the IFB Governmental Affairs Leadership Conference.

“ARC-CO. It was a better fit for our farm.”

Chad Long Warren County

“ARC-CO for corn and soybeans. PLC for wheat. Wheat looked more volatile on price.”

Henry Kessler Clay County

“I’m leaning heavily on ARCCO. The meetings I attended show it would be the best fit for our farm.”

Bob Johnson Jersey County

Plans to choose ARC-CO. “I believe the likelihood of payments is probably higher.”

Chad Bell Mercer County

State must focus on common problems, break down divisions

Page 3 • Monday, March 2, 2015 • FarmWeek

BY KAY SHIPMAN FarmWeek

Illinois House Republican Leader Jim Durkin of Western Springs, left, talks with Illinois Farm Bureau Board Director David Meiss, IFB President Richard Guebert Jr., and IFB Board Director Dale Hadden at the IFB Governmental Affairs Leadership Conference. Durkin addressed the ACTIVATOR Political Leadership Cabinet. (Photo by Cyndi Cook)

Durkin lays out fiscal challenges, urges Farm Bureau involvement

BY KAY SHIPMAN FarmWeek

State legislators face difficult and challenging times, but the Illinois House Republican leader encouraged Farm Bureau members to reach out to them, especially freshmen legislators.

“The upcoming session will be difficult and challenging for our members to make sure Illinois is competitive. We were sent down here not to just vote on easy issues but also on difficult issues ... I’m prepared to make those tough decisions,” said Jim Durkin of Western Springs.

Durkin addressed the ACTIVATOR Political Leadership Cabinet last week during the Governmental Affairs Leadership Conference in Springfield.

Not only must lawmakers grapple with the fiscal year 2016 budget, but they also must find a solution to a $1.6 billion shortfall in the current budget, Durkin pointed out.

“Illinois needs to take strong medicine,” he said.

On one hand, Durkin appeared optimistic, noting the four legislative leaders had met twice with Gov. Bruce Rauner — something that hadn’t happened over the past year and a half with Gov. Pat Quinn. But decisions on the current budget must be made soon or within two weeks, or the state “won’t make the payroll” for prison

guards or provide government support for child care, he explained.

Looking ahead to the next budget, Durkin called previous spending levels “no longer sustainable.” He credited Rauner for setting funding priorities of public safety, elementary and secondary education, and paying down the backlog of bills.

Durkin encouraged IFB Leadership Cabinet Members’ involvement in politics. Last year’s election cycle proved to be one of the closest he’s been involved with, the House leader said.

Despite Republican and Democrats spending $17 million on House races, the election outcome didn’t change the number of seats held by either party in the House. Of the close House races, three candidates lost by a total of 700 votes out of thousands of votes cast.

However, 14 freshmen Republicans took the oath of office in the House, and Durkin urged Farm Bureau members to reach out to them. He highlighted 22-year-old Avery Bourne of Pawnee, who was selected to replace Wayne Rosenthal, who became Illinois director of natural resources.

“I encourage you to get to know these new members.

Their backgrounds are diverse,” Durkin said.

State Rep. Frances Ann Hurley, D-Chicago, center, chats with her “adopted” county Farm Bureau leaders Bruce Johnson, left, Stephenson County Farm Bureau manager, and county Farm Bureau Board Director Jon Rosenstiel. (Photo by Cyndi Cook)

Illinois and its citizens represent diversity but share core concerns that must take precedence over perceived divisions in the eyes of a state senator leading school funding reform.

“We have to break down the walls and work together,” Sen. Andy Manar, D-Bunker Hill, told participants of last week’s Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield.

Manar illustrated his point by noting parents from Coffeen, population 685, and parents from Decatur, population 74,710, asked him the same question: Why was the state failing to support their students?

“Here’s an issue — albeit the most difficult to tackle — that a lot of districts at their core, their challenges are very similar,” Manar said.

“Simply spending more money will not fix this prob-

lem. That (idea) should cross all party lines, and downstate and upstate lines,” Manar continued. He urged revision of the state funding formula with money targeting districts’ needs.

Illinois also needs a capital bill, according to Manar. “We can find common ground because infrastructure needs” are universal, he noted.

Manar offered that legislators sincerely want to solve the state’s difficult problems.

“We have to have a budget that is balanced and, at the same time, grows the state’s economy,” he said. “It doesn’t have to be either/or; it requires balance.”

The senator praised Farm Bureau for its work to bridge the divide between urban and rural Illinois through IFB’s Adopt-a-Legislator® program.

Recently, Manar and Sen. Heather Sterns, D-Chicago, had “a quality discussion with the Macon County Farm

Bureau,” he said. The Macon County Farm Bureau and Sterns were matched through the Adopt-a-Legislator program.

He encouraged county Farm Bureaus to continue reaching out to urban legislators.

“Those conversations lead to better outcomes,” Manar said.

“Make sure the walls that divide us are broken down.”

LEGISLATOR CONVERSATIONS

Above, state Rep. La Shawn Ford, D-Chicago, center, talks with his “adopted” county Farm Bureau leaders Kate L a n s a w, l e f t , K n o x C o u n t y Farm Bureau manager, and Tim Main, county Farm Bureau president, during a legislative reception at last week’s Illinois Farm Bureau Governmental Affairs Leadership Conference.

Right, state Rep. Aver y Bourne, R-Pawnee, chats with Christian County Farm Bureau members Caleb May, left, and Kenneth Franklin. (Photos by Cyndi Cook)

Sen. Andy Manar

Illinois crop production, yields break new ground in 2014

FarmWeek • Page 4 • Monday, March 2, 2015

BY DANIEL GRANT FarmWeek

Illinois farmers knew they had good crops heading into harvest last year.

But many had no idea just how good yields were in some fields until they saw how quickly combine hoppers filled up at numerous locations.

Many farmers harvested the largest yields of their careers last year en route to record yields for corn and soybeans in Illinois.

The record state yield averages of 200 bushels per acre for corn and 56 bushels per acre for beans last year increased 22 and 6 bushels, respectively, from 2013. The previous record yields were 180 bushels per acre for corn set in 2004 and 51.5 bushels per acre of beans harvested in 2010.

Both yields were tops in the country. Last year also marks the second consecutive year Illinois led the country in soybean production.

Yields in the five states (Indiana, Iowa, Kentucky, Missouri and Wisconsin) bordering Illinois averaged a combined 173.2 bushels per acre for corn and 49.2 bushels per acre for beans by comparison.

“Farmers had a bit of a late start to planting, but once they got going, they finished well,” said Mark Schleusener, Illinois state statistician with the National Agricultural Statistics Service (NASS). “It was one of those growing seasons where almost all the state had timely rains.”

Total production of both crops in the state, 2.28 billion bushels of corn and 548 million bushels of beans, also set new records. Corn production topped the previous record set in 2007.

Still trying to get a handle on the size of the bin-buster yields?

Consider this: A stunning 34 counties in the state averaged better than 200 bushels per acre for corn, while 20 counties boasted 60plus bushel soybeans (see graphic).

“There was a sweet spot (in central Illinois) where about every five to seven days we got a half to three-quarters of an inch of rain,” Schleusener said. “The story I tell people is I never stopped mowing my lawn last year (in Sangamon County).”

Counties with the top corn yields in Illinois last year were Macon (236 bushels), Piatt (235.2), Logan (230.8), Sangamon (226.8) and Tazewell (224.4). The lowest county yield in the state, 160 bushels per acre in Pope and Franklin counties, certainly was nothing to sneeze at in that part of the state.

Counties with the top bean yields in Illinois last year included Piatt (69.2 bushels), Macon (67.4), Douglas (65.8), Champaign (63.9) and Logan (63.7). The lowest yields in the state still were a respectable 40 bushels per acre in Johnson County and 41 bushels per acre in Perry County.

The 2014 growing season also yielded well for winter wheat, which tied a state record of 67 bushels per acre. Unfortunately, quality issues hurt that crop in some parts of the state.

Illinois’ sorghum crop averaged 106 bushels per acre, up 12 bushels from the previous year, while total production (2.23 million bushels) was up 18 percent from 2013.

Oat harvest posted similar gains as the statewide average yield last year (80 bushels per acre) was up 11 bushels from 2013. Oat production last year totaled 2 million bushels in Illinois, up 16 percent from 2013.

Economist: Lower crop prices expected to fuel pickup in demand

BY DANIEL GRANT FarmWeek

USDA’s crop price forecast released recently at its Ag Outlook Forum wasn’t an encouraging outlook for farmers.

The 2015-16 season-average farm prices could fall by a range of 4 to 15 percent for corn, soybeans and wheat compared to 2014-15.

USDA projects the seasonaverage price could slip from $3.65 to $3.50 per bushel for corn, from $10.20 to $9 per bushel for beans and from $6 to $5.10 per bushel for wheat.

“Despite lower planted acreage, supplies of grain and soybeans will be plentiful in the coming year (after back-to-back record crops),”

said Bill George, senior ag economist with USDA’s Foreign Ag Service. “We expect prices to trend lower.”

Many farmers were able to partially offset lower crop prices this year via more Bill George bushels.

Corn and soybean yields in Illinois, for instance, set a new record.

However, USDA projects closer to trend yields this year, which would result in a 4 percent reduction in corn and soybean production.

On the bright side, USDA

expects lower crop prices in the coming year also could stimulate demand growth.

The Ag Department estimates corn feed and residual use in 2015-16 could grow 25 million bushels to 5.27 billion bushels, while exports could increase 100 million bushels to 1.85 billion bushels.

U.S. soybean exports could reach a record 1.82 billion bushels in 2015-16, a slight increase from 201415. Domestic soy crush could expand by 45 million bushels, while soy meal feeding could grow by 3 percent.

USDA also expects a 75 million bushel jump in wheat exports from 2014-15

up to 975 million bushels in 2015-16.

“The growing pork and poultry (sectors) are expected to add to domestic disappearance of grains and oilseeds as producers begin to rebuild herds and flocks,” George said.

“Worldwide demand for corn is growing as lower prices spur feed demand in the livestock sector,” he continued.

“Lower soy meal prices are expected to create additional demand in the feed sector as well.”

USDA projects U.S. farmers this year will produce 5.5 percent more pork and 3.6 percent more broiler meat compared to last year.

Biofuel demand also should

remain strong in the coming year. USDA projects a slight drop (25 million bushels) of corn used for ethanol in 201516, which could total 5.23 billion bushels.

Meanwhile, soybean oil used for biodiesel production could grow from 4.7 billion pounds in 2014-15 to 4.8 billion pounds in 2015-16 as soy oil prices dip to the lowest level since 2006.

“Corn for ethanol (which represents 44 percent of domestic use) should remain historically high due to a rebound in gasoline demand,” George added.

“Biodiesel use also is expected to rise due to lower prices and increased economic growth.”

USDA projects near-record ag exports; challenges loom

Page 5 • Monday, March 2, 2015 • FarmWeek

BY DANIEL GRANT FarmWeek

U.S. ag exports could post another impressive year in 2015, based on the most recent USDA forecast.

The Ag Department currently projects U.S. ag exports this fiscal year will total $141.5 billion. If realized, it would be the second-highest value of exports on record.

“Last year we focused on farm bill implementation (which has a sign-up deadline of March 31),” Ag Secretary Tom Vilsack said at the USDA Ag Outlook Forum. “2015 is about the year of market and product expansion.”

Ag trade currently generates nearly 30 percent of all U.S. ag

sales and supports 1.1 million jobs, according to Vilsack.

In the past decade, U.S. ag exports increased at an average clip of 8.5 percent per year. This year, it could produce a trade surplus of $22.5 billion, said Robert Johansson, USDA acting chief economist.

And sales could grow if free trade agreements with Europe and a Trans-Pacific Partnership are realized.

“The future of agriculture is bright,” Vilsack said. “We have extraordinary opportunities.

There are significant challenges looming, though, that could hinder trade.

The rising value of the dollar and a slowdown of economic growth in China

rank among the issues.

During the past year, the dollar increased in value by 8 percent compared to the British pound, 3 percent to the Chinese yuan, 13 percent to the Canadian dollar and 19 percent relative to the euro. The stronger dollar raises the price of U.S. goods overseas.

“While agricultural exports have been increasing over time, they are not immune to currency fluctuations,” Johansson said.

“The dollar appreciation will likely continue into 2015, although at a more moderate pace.”

On a positive note, USDA projects overall transportation costs will decline this year due to lower oil and fuel prices. USDA expects rail freight rates will return to normal this year after severe rail

Boost in meat production could take bite out of prices

BY DANIEL GRANT FarmWeek

Sticker shock at the meat case could ease in the months ahead.

USDA projects a bounce-back year for livestock production and a slight decline in meat exports for 2015.

If realized, domestic meat supplies could expand significantly compared to a year ago when tight inventories seared meat prices to new highs.

“Low feed costs are expected to provide incentive for (herd and flock) expansion in 2015,” Michael Jewison, USDA ag economist, said recently at the USDA Ag Outlook Forum.

USDA estimates total livestock and poultry production could grow 3.2 percent this year compared to 2014, which Michael Jewison would be the largest year-overyear production increase since 2002.

Last year, total livestock and poultry production decreased 1.2 percent. Meat prices subsequently raced to record averages of $5.60 per pound for beef and $4.02 per pound for pork.

Chicken prices increased to $1.96 per pound, while a dozen eggs cost an average of $2.02.

Meat supplies tailed off last year due to the outbreak of porcine epidemic diarrhea virus (PEDV) and thinning of beef cows in previous years which pushed herd numbers to the lowest level since 1952.

The cattle herd since last year started to rebound. The number of cattle and calves on Jan. 1 increased 2.1 percent, while pork producers got a handle on PEDV. The uptick in herd numbers and low feed

prices, which provide incentives for farmers to feed animals to heavier weights, could boost output this year by 5.5 percent for pork and 3.6 percent for broiler meat.

“Producers appear to be adapting to PEDV,” Jewison said. “We expect a continued growth of litter rates in 2015.”

Liz Wagstrom, chief veterinarian for the National Pork Producers Council, said the outbreak of PEDV plummeted since the peak last winter of 300-plus new cases per week to about 100 cases per week this winter.

“We’re seeing fewer PEDV breaks than last year,” she said. “We’ve learned a lot (about managing the virus).”

Domestic meat supplies could grow from increased livestock production along with a slight decrease in exports. USDA projects exports this year could slip from 2014 by 4.8 percent for beef, 2.6 percent for broiler meat and .8 of a percent for pork due in part to increased competition and stronger value of the U.S. dollar.

“Exports are down, but still relatively high,” Jewison said. “U.S. dollar strength is a headwind to exports.”

U.S. hog prices, on a national basis (51 to 52 percent lean) are forecast to average $54 to $58 per hundredweight, down from last year’s record of $76.

Steer prices for 2015 actually could increase from last year’s record average ($155 per hundredweight) to a range of $157 to $160.

“Returns for cow/calf operators still are very favorable,” Jewison said. “We expect them to continue expanding in 2015 with normal weather conditions.”

Elsewhere, milk prices are expected to fall 26 percent from last year’s records. USDA projects domestic milk production could reach a record 211.5 billion pounds this year.

car congestion problems last year depressed local cash crop prices at some locations.

Meanwhile, ag exports to China are expected to decline about

$2 billion this year compared to 2014. But USDA expects China will remain the top destination for U.S. ag exports for the fifth consecutive year.

The dish on food expenses; USDA expects modest inflation

BY DANIEL GRANT FarmWeek

Americans spend a smaller percentage of their income (about 10 percent) for food than consumers just about anywhere else in the world.

And that trend will continue for the foreseeable future based on a recent food price outlook.

Annemarie Kuhns, economist with USDA’s Economic Research Service, recently predicted food price inflation this year will be near the historical average.

“In 2015, we are expecting to see overall food inflation between 2 and 3 percent, which is still pretty much in line, to slightly below, the 20-year average,” Kuhns told FarmWeek.

Food price inflation the past 20 years averaged 2.6 percent annually, although the volatility of food prices increased in recent years, according to Kuhns.

Inflation for food last year actually sank below the average, at 2.4 percent, despite sharp price increases for meat, dairy and eggs.

“A lot of items around the perimeter of the grocery store, such as meat, dairy and eggs, saw aboveaverage inflation last year,” Kuhns said. “It was offset by lower inflation for nonperishable items.”

Tight meat supplies and strong demand last year pressured price increases of 12 percent for beef and 8 percent for pork.

Kuhns looks for most meat and dairy prices Annemarie Kuhns to moderate this year due to production increases along with lower transportation costs.

USDA anticipates farmers this year could produce 5.5 percent more pork and 3.6 percent more broiler meat.

Beef prices, however, could increase 5 to 6 percent as it will take time for herd expansion to lead to increased supplies of meat.

Transportation costs, on the other hand, are expected to decelerate due to lower oil prices.

“Oil prices are at low levels. Depending on how long it lasts, it could have a mitigating effect on food inflation,” Kuhns said.

Lower transportation costs also could boost traffic to restaurants.

“The lower cost of energy and gas does help drive traffic to restaurants,” said Rob Green, executive director of the National Council of Chain Restaurants.

Higher food costs in recent years, particularly for meat, challenged restaurant owners. “(Restaurants) have difficulty passing along costs to consumers,” Green said. “Cost volatility also is very difficult to manage.”

Restaurants responded with more promotional opportunities, limited time offers and substituting menu items with cheaper ones (such as switching from beef to more chicken offerings).

Meanwhile, it appears the trend at grocery stores will continue to be a smorgasbord of marketing labels on products.

“The buzzword in retail is differentiation,” hence the bevy of labels ranging from natural and organic to cage-free and grass-fed, said Jon Hauptman, a grocery industry consultant from Barrington.

Dry weather, lower prices could trim record soybean, corn production in Brazil Soybean harvest in Brazil last week was about one-quarter complete.

And based on initial yields and remaining crop potential, Brazilian soybean production could be slightly less than recently projected by USDA, according to Michael Cordonnier, president of Soybean & Corn Advisor in Hinsdale.

“This season started out dry, the rain returned in December, then it became dry again in January,” Cordonnier said recently at the USDA Ag Outlook Forum. “I have a production estimate at 93 million metric tons (3.41 billion bushels in Brazil).

“It’s a record (crop),” he continued. “About seven million more tons (257 million bushels) than last year.”

USDA last month projected South American soybean production could total 94.5 million metric tons (3.5 billion bushels) in Brazil and 56 million metric tons (2.1 billion bushels) in Argentina. Both production estimates represent new records.

But dry weather could shave the top end off bean yields in Brazil. Weather issues and low prices also could trigger Brazilian farmers to plant less second-crop corn (Safrinha) following the beans.

Soybean harvest got off to

a slow start and experienced further delays last week when Brazilian truckers parked their rigs on two major highways (BR-163 and BR-364), which stopped the movement of grain, to protest higher fuel costs and taxes.

The slow start to soybean harvest and lower Michael corn prices Cordonnier could result in 5 to 10 percent fewer plantings of Safrinha in Brazil, according to Cordonnier.

“The ideal planting window (for second-crop corn in Brazil) ended Feb. 20,” he said. “They’ll keep planting into early March, but after that it’s too risky.”

Cordonnier projects secondcrop corn yield potential in Brazil this spring could be as low as 50 bushels per acre or lower compared to the threeyear average of 80 bushels.

“The long-range forecast (in Brazil) is drier than normal from March to May,” he said.

“I think Safrinha acres will be down 5 to 10 percent. Total production could be down 10 to 15 percent due to less acres and lower yields.”

Meanwhile, Brazilian farmers

in recent years increased firstcrop soybean plantings at an annual rate of 8 to 11 percent.

But that rate of increase could slow this year if USDA’s average soybean price estimate of $9 per bushel comes to fruition.

The cost of soybean production in Brazil generally ranges from $8.50 to $9.50 per bushel, according to Cordonnier.

“If their price forecast (at USDA) is right, we probably won’t see a double-digit increase of soy plantings (in Brazil) in the coming year,” Cordonnier said. “It will probably be in the single-digits, around a 3 to 5 percent increase.” — Daniel Grant

Biotechnology, RFS, trade among commodity group priorities

FarmWeek • Page 6 • Monday, March 2, 2015

BY DANIEL GRANT FarmWeek

Commodity group leaders plan to continue expanding demand for corn and soybeans in light of record production the past two years.

Representatives of the American Soybean Association (ASA) and National Corn Growers Association (NCGA) emphasized this and other priorities last week at the 20th annual Commodity Classic in Phoenix.

“With increasing yields, we need to continue building demand,” said Chip Bowling, a Maryland farmer and NCGA president. “We’ve proven we’re good at growing corn.

We’ve got a 2 billion bushel carryover.”

Chip Bowling Possible Free Trade Agreements with 11 other nations in the Trans-Pacific Partnership, a Trans-Atlantic trade initiative with the European Union and the potential reopening of the Cuban market represent key opportunities to

boost U.S. ag exports.

But those agreements appear dependent on passage of Trade Promotion Authority (TPA) for the executive branch.

“We need to get TPA authority to the executive branch to complete negotiations of those (free trade) agreements,” said Richard Wilkins, ASA first vice president and a farmer from Delaware. “That’s a priority for us right now.”

A sticking point in negotiations with the EU revolves around the approval process of biotech crops. It’s also hindered trade to other destinations, such as China, in the past year.

“There are (trade) barriers,” said Chris Novak, CEO of NCGA. “We’re going to push Congress to provide TPA.” The commodity groups

also continue to address domestic biotech issues. They seek an enhanced approval process for biotech traits in the U.S. along with a standardized labeling system to ease consumer concerns.

The approval process for new traits currently takes as long as three years or more, about double the time as Wade Cowan previous years, according to Ray Gaesser, ASA chairman and Iowa farmer.

“That’s a real concern for us,” he said. “It’s not giving farmers the tools they need (to boost yields and address weed resistance and climate issues).”

ASA and NCGA also believe USDA should develop a standardized label for non-GMO products.

“We believe this is a positive message to consumers,” ASA president Wade Cowan, a farmer from Texas, said of the call for a USDA-certified label for non-GMO products.

“Current state (labeling) initiatives are widely variant, and you end up with a bunch of labels on the shelf. The most efficient way is to have a USDA certified non-GMO label.”

Commodity group leaders also continue to promote the use of biofuels and the Renewable Fuels Standard (RFS). Some lawmakers continue to pursue a repeal of the RFS. “Any threat to the RFS is a threat we take seriously,” said Martin Barbre, NCGA chair-

man and a farmer from southern Illinois.

NCGA also takes a proactive approach to promoting ethanol nationwide via a partnership with NASCAR, which uses the fuel in all its races.

NCGA also launched its new Prime the Pump project, which provides assistance to fuel distributors to provide E15 pumps.

Meanwhile, the Illinois Soybean Association (ISA) recently teamed with the American Lung Association to launch the B20 club in an effort to promote biodiesel use.

The B20 club recognizes fleets that use the soy-based fuel, provides resources to club members and answers questions about how to use biodiesel in fleets, according to Rebecca Richardson, ISA biodiesel lead.

A panel of farmers who discussed the goal of breaking crop yield barriers last week at the 20th annual Commodity Classic in Phoenix offered numerous tips to fellow producers.

And one recommendation they were quite adamant about, particularly this year as far mers face changing economics, involves maintaining yield goals despite high input

costs and lower crop prices.

USDA last month projected crop prices for 2015-16 could slip to averages of $3.50 per bushel for corn and $9 for beans.

“With low commodity prices, my response is I want to make more corn,” said Steve Albracht, a farmer from Hart, Texas. “We won’t cut nothing out (of crop inputs).”

Albracht last year produced as much as 338 bushels per acre on some of his irrigated fields.

Patrick Hurt, research director for Security Seed and Chemical in Clarksville, Tenn., said farmers should continue to maximize crop production even in the face of tighter margins.

“I know you (farmers) are looking at the cost per acre.

But what are you selling, acres or bushels?” he said.

“You’re not going to be able to cut your way to more profits.”

Dan Arkels, a farmer from Peru (LaSalle County) knows a thing or two about producing high yielding crops.

He won the Illinois Soybean AssociaDan Arkels tion’s Soybean Yield Challenge last year with an entry of 104 bushels per acre. He previously won a state corn yield contest with more than 300 bushels per acre.

“I like to try new products and see what I can do to push yields,” Arkels said.

“One of my main goals (in the Yield Challenge) was to

save as many aborted pods as I could.”

Almost two-thirds of soy pods are aborted in most fields, according to the farmer panel.

Meanwhile, the current genetic potential of corn, before it encounters various stresses in the field, could be as high as 600-plus bushels per acre.

Farmers, therefore, should focus on getting quality stands with as little compaction as possible, and fertilizing the crop to meet the yield goal of each field, according to the panelists.

“I’ve started writing prescriptions for each field and changing populations based on different soil types,” Arkels said. “It’s worked really well for me.”

The farmer panel also spends a great deal of time scouting fields each season and takes tissue samples to gauge crop health.

“We do tissue sampling and try to stay ahead of the crop all season,” Albracht said. “I’m in the cornfield more than I’m at home.”

Fred Lukens, a North Dakota farmer, used tissue sampling to determine his corn crop was low on potassium even though soil samples revealed ample supplies.

Not all farmers are willing to maximize inputs, though. An informal survey of more than 300 farmers during the session at Commodity Classic found 17 percent do not apply nitrogen to soybeans.

Looking ahead to this season, 55 percent of those surveyed plan to maintain planting populations, while 9 percent plan to cut back.

Farmers: Don’t let high input costs diminish yield goals

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Science center exhibit fundraising exceeds goal

Page 7 • Monday, March 2, 2015 • FarmWeek

Mike Rauch, Cook County Farm Bureau vice president, lifts bags of donated food destined for Ronald McDonald House Charities. Farm Bureau members and their partners collected 11,113 pounds of food during a recent Food Checkout Day event. (Photo by Bona Heinsohn)

Food Checkout Day bags large donations More than $15,700 and 11,113 pounds of food.

Those numbers marked success for Cook County Farm Bureau members, sponsors and COUNTRY Financial during a recent Food Checkout Day event. Since the effort began in 2001, partners have donated more than $102,000 and more than 69,900 pounds of food to Ronald McDonald House Charities of Chicagoland and Northwest Indiana.

Food Checkout Day highlights the safe and nutritious food grown by local farmers, while also drawing attention to those families who struggle to find solutions to feeding their families healthy food on a tight budget.

Cook County Farm Bureau members collected food items, and hosted a scavenger hunt and shopping spree to benefit local Ronald McDonald Houses. Farmers, sponsors, COUNTRY Financial

BY BONA HEINSOHN

agencies, 4-H members and students from 12 schools participated in a food drive. “Cook County and Illinois farmers are committed to growing safe and nutritious food for our families and for others,� said James Gutzmer, Cook County Farm Bureau president. “Food Checkout Day allows us to recognize the importance of healthy, nutritious food while supporting a local charity.�

Food Checkout Day operates in cooperation with the Illinois Corn Marketing Board, Illinois Corn Growers Association, Cook County Farm Bureau, American Agricultural Insurance Company and COUNTRY Financial.

Donations can still be made by contacting the Cook County Farm Bureau at 708354-3276 or by emailing bona@cookcfb.org.

ing the IFB Annual Meeting in December.

County Farm Bureaus were challenged to contribute to the project by May 1.

The $6 million agricultural exhibit will be built on 1 acre of land and include 50,000 square feet of exhibit space — both indoors and outdoors. It will feature interactive exhibits and activities, a greenhouse and classrooms for public programs.

Illinois and Missouri Farm Bureaus agreed to help pay for the exhibit’s interactive map, which will provide a high definition, aerial view of farms, roads, cities, mountains, and rivers of Missouri and Illinois.

Rolling information tablets will be available for visitors to interact with the map. When a visitor rolls the cart past a disc, it will launch a video of a farm family from that county.

The American Farm Bureau Foundation for Agriculture awarded $500 mini-grants to three Illinois county Farm Bureaus out of 23 recipients nationwide. The grants are awarded through the Foundation’s White-Reinhardt Fund for Education program.

County Farm Bureaus use the grants to create new agricultural literacy projects or expand on existing ag literacy efforts.

Cass-Morgan County Farm Bureau will buy mini-incubators and create poultry kits to help Farm Bureau members and teachers teach students about chicks and the life cycle.

Cook County Farm Bureau will expand its “There’s Ag on My Plate� program that teaches students in urban classrooms about food, fuel and fiber systems.

Franklin County Farm Bureau will create a kit based on the Ag in the Classroom lesson booklet, “Cris Crossed.� The kit will contain materials for projects and will be available for loan to schools and organizations to help promote agricultural literacy.

Recipients were selected based on effectiveness of demonstrating a strong connection between agriculture and education; how successfully the project enhances learner engagement in today’s food, fiber and fuel systems; and the processes and timelines for accomplishing project goals.

The White-Reinhardt Fund for Education is a project of the Foundation in cooperation with the American Farm Bureau Women’s Leadership Committee.

Three Illinois county FBs receive grants

You have options.

Bona Heinsohn serves as Cook County Farm Bureau governmental affairs and public relations director.

Illinois Horse Fair starts Friday The 26th Annual Illinois Horse Fair runs Friday through Sunday on the Illinois State Fairgrounds, Springfield. The family-oriented event is produced by The Horsemen’s Council of Illinois (HCI). “Building a strong equine industry in Illinois starts with support from groups that can help educate, unite and inspire equine enthusiasts,� said Brenda Matherly, Illinois Farm Bureau assistant director of local government. “We sponsor and promote the fair because it represents that type of commitment to our equine members and to the

In just three months, Illinois Farm Bureau members succeeded in topping their goal of raising $230,000 for a new Saint Louis Science Center agricultural exhibit.

As of last week, members raised $243,270.

Seventy-one counties and 26 individuals contributed to the project. IFB providing matching funds for those donations. “We wish to thank each county Farm Bureau and individual who has embraced the idea to further ag literacy through support for the Saint Louis Science Center Agricultural Exhibit,� said IFB President Richard Guebert Jr. “I am impressed and overwhelmed by your enthusiastic support of this worthwhile effort.�

Fundraising efforts will continue, Guebert noted. The campaign officially kicked off dur-

agricultural way of life.�

The event offers educational classes and seminars in a variety of different equestrian styles. Other features include, the Heartland Horseman’s Challenge, an indoor and outdoor shopping bazaar, and a new artisans’ venue to showcase country and equestrian fine arts.

Nutrena, one of the event sponsors, offers a free hay analysis for individuals who bring a sample.

For a schedule and details, visit {illinoishorsefair.com} or the Illinois Horse Fair on Facebook.

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Illinois Council on Best Management Practices sets cover crop events FarmWeek • Page 8 • Monday, March 2, 2015

The Illinois Council on Best Management Practices (CBMP) offers several events on soil health and cover crops, starting in March. A full listing of meetings planned through November is available by visiting {illinoiscbmp.org/ Events/}.

• Cover crop informational meeting, 10 a.m. to noon,

March 11, Mason County Farm Bureau building, Havanna. Topics include best management practices for the area. For reservations, contact Mark Jacob, Mason County Natural Resources Soil Conservation Service (NRCS) at mark.jacob@il. usda.gov or 309-543-6075, extension 3.

• Soil and water stewardship

workshop, 8:30 a.m. to 2:30 p.m. March 13, Vermilion County Soil and Water Conservation District (SWCD), Danville. Topics include nutrient management, soil health and water quality. Reservations needed by March 9 with Jon Felix, Vermilion County SWCD, jon.felix@il.nacdnet. net or 217-442-8511, extension 3.

• Cover crop informational meeting, 9 a.m. to noon, March 14, 7395 Albany Road, Erie. Topics include

best management practices and the Conservation Stewardship Program. Reservations limited to 25 individuals. Contact Dave Harrison, Whiteside County SWCD, at dave.harrison@il.nacdnet. net or call 815-772-2124, extension 3.

• Cover crop infor mational meeting, 9:30 a.m. to noon, March 16, Macoupin County Extension Building, Carlinville. Topics include best management practices. For reser vations,

contact Aaron Engstrom, Macoupin County NRCS, at aaron.engstrom@il.usda. gov or 217-854-2628, extension 3.

• Cover crop informational meeting, 9:30 a.m. to noon, March 18, Farm Credit Service office, Jerseyville. Topics include best management practices. For reservations, contact Crystal Nance, Jersey and Calhoun NRCS, at crystal.nance@ il.usda.gov or 618-498-3713, extension 3.

Prices respond to market news reports, such as droughts, but often not in the way people assume. A new report by GROWMARK Research shows that a commodity’s seeming price response to news occurs primarily due to the effect of large amounts of money flowing in from other financial markets.

“Money flows move prices regardless of what the news is or whether there is any news at all,” according to Kel Kelly, GROWMARK economic and market research manager, and author of the report, “News, Money and Prices.”

Additionally, Kelly found price responses to news are more than four times greater

during periods where money flows are taking place than when they are absent.

The study indicates that what is often perceived as news events roiling markets more often represent catalysts for investors to implement preplanned buy and sell decisions.

To read the entire report, visit {http://bit.ly/17yOi7h}.

Western Illinois University (WIU) will host the 43rd Performance Tested Bull Sale at 7 p.m. March 13 in the WIU Livestock Center, Macomb.

The WIU Livestock Center is

located a mile west of U.S. 67 on Tower Road in Macomb.

Fifty bulls are listed for sale, and breeds represented are Angus, Simmental, Sim-Angus and Red Angus, according to

Samantha Cunningham, WIU School of Agriculture assistant professor.

For more information, call Cunningham at 309-298-1288 or visit {http://bit.ly/1vT36 sV}.

Conservation compliance certification required Money flows, not news, drive markets Illinois farmers need to file a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026) at their local Farm Service Agency (FSA) office.

Farmers need the certification to be eligible for premium support on their federal crop insurance. The 2014 farm bill requires farmers to adhere to conservation compliance guidelines to be eligible for most programs administered by FSA and the Natural Resources Conservation Service (NRCS). This includes the new price and revenue protection programs, the Conservation Reserve Program, the Livestock Disaster Assistance programs and Marketing Assistance Loans.

Farmers have until June 1 to file or correct an AD-1026 form. When a farmer completes and submits the AD-1026 certification form, FSA and NRCS staff will review the associated farm records and outline any additional actions that may be required to meet the required compliance.

Form AD-1026 is available at FSA offices and at {www.fsa. usda.gov}.

WIU Performance Tested Bull Sale slated March 13

Tuesday: • FarmWeek: “The Early Word” • Jay Groves, Illinois State University: effect of state budget cuts on colleges • Bryce Anderson, DTN: weather outlook Wednesday: • Dave Newcomb, Illinois Fire Service Institute: planting safety • Marty Tatman, American Farm Bureau Federation: Agri-

cultural Safety Awareness Program • Tim Schweizer, Illinois Department of Natural Resources: outdoor safety Thursday: • Frank Butterfield, Landmarks Illinois: archeology in Illinois • Erin Cleary, Illinois Pork Producers Association Friday: • Mike Doherty, Illinois Farm Bureau senior economist and policy analyst: ag outlook • Don Lockwood, Sullivan High School: student-created ATV safety program

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B

OND — Foundation trivia night, 7 p.m. Saturday at the VFW in Greenville. Maximum 10 per table, $100 per table. Call 6643100 to register and for more information.

UREAU — Spring equine seminar, 6:30 p.m.

March 12 at Black Hawk East Ag Pavilion. Doug Bogart, Doug Bogart Reining Horses, will provide a live demonstration and review training methods.

LINTON — On-theroad seminar, 7 p.m.

Wednesday at Kaskaskia College Ag Ed Center. Kevin Rund, Illinois Farm Bureau senior director of local government, will speak.

OLES — Foundation scholarship applications available. Call 345-3276, email colescfb@consolidated.net or visit the Farm Bureau office for an application. Application deadline is March 17.

• Farm Mall Show Friday through Sunday at Cross County Mall in Mattoon. Children’s activities, entertainment and agricultural displays. Young Leader kiddie tractor pull will be noon Saturday.

• Quilt Show, Friday through Sunday at Cross County Mall in Mattoon. Quilt registration noon to 7 p.m. Wednesday.

Demonstrations will be given Friday and Saturday. Call Nancy Swinford at 549-0009 for more information.

FFINGHAM — Creating a farm plan — getting geared up for 2015, 8 a.m.

Friday at the Farm Bureau office. Topics will include seed and fertilizer, precision data and machinery. Call 342-2103 for reservations by Thursday.

Reservations are not required.

• Annual Meeting dinner, 6 p.m. March 9 at Teutopolis Knights of Columbus Hall. Jeff Nalley, Cromwell Ag Radio Network, will speak. Cost is $3.

Call 342-2103 for reservations

by Monday.

AYETTE — Anhydrous awareness training, 9 a.m. Friday at South Central FS in Vandalia. Call 2833276 for reservations by Tuesday.

ANCOCK — Insuring Your Future dinner meeting for young farmers, 6 p.m. March 12 at Lake Hill Winery. Call 357-3141 for reservations by March 11.

ANKAKEE — Annual meeting, 5:30 p.m.

Thursday at Kankakee Hilton Garden Conference Center.

Dinner will begin at 6:30 p.m.

Dan Proft, radio personality, will speak. Tickets must be purchased in advance. Cost is $15 for members and $30 for nonmembers. Call 815-932-7471 by Monday.

• Market outlook breakfast, 8 a.m. March 11 at Kankakee

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Page 9 • Monday, March 2, 2015 • FarmWeek

Hilton Garden Conference Center. Dale Durchholz, AgriVisor senior market analyst, will speak. Cost is $5. Call 932-7471 to register by March 10.

ASALLE — Young Leaders tour of CNH Engineering Facility at Burr Ridge, leaving the Farm Bureau office at 7:15 a.m.

March 20. Call 433-0371 for reservations by March 12.

EE — District 4 Young Leader curling, 7 p.m.

March 13 at Waltham Curling Club. Call 857-3531 or email leecfb@comcast.net by March 11 for reservations.

ARION — On-theroad seminar, 7 p.m.

Wednesday at Kaskaskia College Ag Ed Center. Kevin Rund, IFB senior director of local government, will speak.

• Wellness promotion, 7-9 a.m. Wednesday at the Farm Bureau auditorium. A variety of blood tests will be offered to members. Call 548-2100 for pricing and to register.

ASSAC — Young Farmers Committee farmer appreciation breakfast, 6:30 to 8:30 a.m. March 14 at Massac County Youth Fairground in Metropolis. Call 524-5811 for reservations by March 12.

• On-the-road trucking regulations dinner seminar, 6 p.m.

Monday at Shawnee Community College River Room.

Kevin Rund, IFB senior director of local government, will speak.

ONROE — Agriculture update dinner, 6:30 p.m. March 9 at Monroe County Annex. Robert Bellm, U of I Extension, and Adam Parker, Gateway FS, will speak.

Call 939-6197 for reservations

by Wednesday.

• Annual meeting and silent auction, 6:30 p.m. March 14 at the American Legion in Columbia. Richard Guebert Jr., IFB president, will speak.

Cost is $10. Tickets are available at the Farm Bureau office.

Call 939-6197 for reservations

by Friday.

ONTGOMERY — Prime Timers meeting, noon March 18 at the Farm Bureau building. Brian Niemann, past president, will speak about the 2014 IFB infrastructure tour. Cost is $9.

Call 532-6171 for reservations

by March 13.

• Grain Belt Express HVDC informational meeting, 10 a.m. March 16 at Knights of Columbus Hall in Farmersville. Laura Harmon, Illinois Farm Bureau Office of the General Counsel, will speak.

EORIA — Farmers Share of the Food Dollar Breakfast, 7 to 11 a.m.

March 14 at Exposition Gardens in Peoria. Cost is 85

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cents. A silent auction benefitting ag literacy and scholarships, and Barnyard Discovery’s live animals will be included.

• Weather outlook and Natural Resources Conservation Service (NRCS) update luncheon, 10 a.m. March 17 in the Farm Bureau auditorium. Mike McClellan, Mobile Weather Team, and Ivan Dozier, NRCS, will speak. Call 686-7070 for reservations by March 12.

IATT — Farm bill breakfast meeting, 8 a.m. March 10 at the Farm Bureau office. Doug Yoder, IFB senior director of affiliate and risk management, will speak. For reservations, call 762-2128 or email piattfb@ piattfs.com by Friday.

• Young Leader ag legislative breakfast, 7:45 a.m. Friday at the Farm Bureau office.

Sen. Chapin Rose, R-Mahomet; and Tyler Cravens, from the office of U.S. Rep. Rodney Davis, R-Taylorville, will speak. Email ezelhart@ piattfs.com for reservations by Thursday.

ULASKI-ALEXANDER — Farm bill breakfast session, 8 a.m.

Wednesday at Shawnee Community College River Room.

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Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call 7459429 for reservations by Tuesday.

• On-the-road trucking regulations dinner seminar, 6 p.m.

Monday at Shawnee Community College River Room.

Kevin Rund, IFB senior director of local government, will speak. Call 745-9429 for more information.

TEPHENSON — Bus trip, leaving at 6:30 a.m.

March 21 to Chicago Flower and Garden Show. Cost is $35 for members and $40 for nonmembers. Call 232-3186 for reservations by March 13.

ABASH — On-theroad trucking breakfast seminar, 7:30 a.m. Friday at Hogg Heaven. Kevin Rund, IFB senior director of local government, will speak.

ASHINGTON — On-the-road seminar, 7 p.m. Wednesday at Kaskaskia College’s Ag Ed Center.

Kevin Rund, IFB senior director of local government, will speak.

AYNE — On-theroad dinner seminar, 6 p.m. Thursday at Frontier Community College Foundation Hall in Fairfield. Kevin

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Rund, IFB senior director of local government, will speak.

Call 842-3342 for reservations.

• Annual meeting, 6 p.m.

March 20 at Cumberland Presbyterian Church in Fairfield.

Young Leader Henry American Farmer Tribute edition rifle raffle tickets are $10 each.

Visit waynecfb.com for notice of meeting. Call 842-3342 for reservations by March 13.

HITE — On-theroad luncheon seminar, noon Friday at the Farm Bureau office. Kevin Rund, IFB senior director of local government, will speak.

INNEBAGOBOONE — Member media training, 9:30-11:30 a.m. and noon-3 p.m. March 9 at the Farm Bureau office.

Attend one or both sessions.

Rachel Torbert, IFB media relations manager, will speak.

Call 962-0653 for reservations

by Thursday.

OODFORD — Date change: Defensive driving class, 8 a.m. Tuesday at the Farm Bureau building.

Cost for eight-hour class is $20. Lunch will not be provided. Call 467-2347 or email woodfordcfb@gmail.com to register.

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Tentative labor agreement reopens West Coast ports FarmWeek • Page 10 • Monday, March 2, 2015

Negotiators representing the International Longshoremen and Warehouse Union (ILWU) and the Pacific Maritime Association reached a tentative agreement to end the labor dispute that caused a major disruption of service along the West Coast.

Terms must still be approved by the groups’ membership, but the 29 ports affected by the Tom Vilsack labor dispute reopened. U.S. Secretary of Labor Thomas Perez announced the decision.

“I’ve been engaged in daily calls the last two weeks developed by the White House,” U.S. Ag Secretary Tom Vilsack told FarmWeek.

“There is a clear understanding of the significant impact it’s having on ag trade and shipments.”

While the West Coast shipping disruption did not impact bulk shipments of corn, soybeans and wheat, grain exports suffered hardships, according to Mike Steenhoek, Soy Transportation Coalition executive director.

Steenhoek noted 25 percent of soybean exports, 35 percent of wheat exports

and 13 percent of corn exports depart from the Pacific Northwest. The overwhelming majority of those exports get loaded at grain export terminals onto bulk ocean vessels that have a separate agreement with the ILWU. Service disruption affected containerized exports, including about 10 percent of soybean and grain exports,

according to USDA. The two main commodities affected included distillers dried grains — affecting 50 percent of shipments — and 25 percent of soybean exports. Steenhoek noted Asia receives 97 percent of soybean and grain exports via container with the West Coast as the primary launching point.

Meat and fresh fruit shipments took an even harder

hit. The American Meat Institute and National Pork Producers Council claim the West Coast delays cost each industry $40 million per week. ”We applaud the two sides for bringing a resolution to this lengthy dispute that has had a punitive impact on U.S. agriculture and the overall economy,” said Steenhoek. “We are

hopeful the severe backlog of cargo along the West Coast can be quickly relieved. More importantly, we are hopeful that our reputation as the world’s most reliable supplier of agricultural and other products can be quickly restored. The reality with good reputations is that they take years to accumulate and moments to evaporate.”

The cycles of corn and soybean commodity prices have taken us to a time where profit/loss analysis of a soybean acre is in many cases better than corn. This has led many growers to consider growing more soybeans than in past years.

Soybeans can have the middle child syndrome.

They are an important part of the family, and we Lance Ruppert love them, but we tend to focus our attention on our firstborn (corn) or the baby (maybe livestock or a specialty crop). So, let’s give the middle child some attention and discuss some ways to make them

feel special. Here are some agronomic practices to consider in helping drive soybean yields and success.

Seed care As the price per unit of soybean seed has increased, the need to protect each seed became much greater. This led to the initial rise in the use of seed treatments. Fungicideonly treatments have proven to help, but not at a high level of return on investment (ROI) like the second generation fungicide and insecticide treatments. A majority of growers use these treatments to gain a better initial stand and to help the plant get to canopy quicker, which aids in weed control and maintaining moisture.

New products like CLARIVA™ and ILeVO® have recently been brought to market to help combat the nega-

tive effects from soybean cyst nematode (SCN) and sudden death syndrome (SDS). If you have had soybean yield negatively affected by SCN or SDS, you may want to consider testing these new products on a portion of your acres this year.

Residual herbicides Using pre-emergence residual herbicides has consistently shown increased soybean yields when used in a two-pass program. Currently, the need to use post-applied residual herbicides overlapping a preapplied residual has become critical in controlling weeds resistant to glyphosate and other modes of action. Don’t let weeds get the best of your soybeans Fungicide and insecticides The proper timing of application (at the R3 stage) is one

key to success when using fungicide on soybeans. The use of insecticides to control insects proactively with a total insect population mindset has been shown to help protect yield.

Many soybean seed production acres effectively use fungicides and insecticides to increase yields and seed quality. Adding a foliar nutrition product to the fungicide or insecticide application has also shown to enhance yields at a low investment level.

Look to your local FS crop specialist to help you capitalize on opportunities to show your soybeans some love and increase your profits.

Growing more soybeans this year?

BY LANCE RUPPERT

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) $36.45-$48.60 $43.26 40 lbs. (cash) $65.00-$75.00 $69.42 Receipts

This Week 101,581 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 75,853

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $64.47 $57.18 $7.29 $47.71 $42.31 $5.39

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

Steers Heifers

This week $157.00 $157.00

Prev. week $159.98 $160.00

Change -$2.98 -$3.00

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 $207.72 $210.58 -$2.86

Lamb prices Negotiated, wooled and shorn, 134-163 lbs. for 135.88-168.09 $/cwt. (wtd. ave. 150.11) ; wooled and shorn 170-186 lbs. for 125-132 $/cwt. (wtd. ave. 129.86).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 02/19/2015 35.3 18.4 35.5 02/12/2015 49.1 14.9 28.5 Last year 48.2 17.7 31.7 Season total 1515.8 605.8 680.8 Previous season total 1319.0 857.0 667.5 USDA projected total 1790 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Lance Ruppert serves as GROWMARK’s agronomy marketing and IMP manager. His email address is lruppert@grow mark.com.

Corn Strategy

Are commodities finally bottoming?

In early December, we suggested commodity prices, in general, may have been getting positioned to put in their three-year lows. As it was, the various indices were in the early part of their window to put in semi-annual (26 week) lows, with that window extending through February.

The Continuous Commodity Index (CCI) we have shown hit a low on its daily chart at the end of January, and has since traded moderately higher. The CRB Commodity Index and the Goldman Sachs Commodity Index did as well.

The CCI had reached an important downside measured target. Both the CRB and Goldman Sachs indices had dropped to, but not through, their late 2008 lows. (The CRB and Goldman Sachs indices tend to be a little more volatile as their energy components are weighted a little more heavily.)

If these indices push beyond their February highs, 435.83 on the CCI, it would be the first good sign an important low has been seen. At the least, it would indicate the minor trend has turned up.

Given the extent of their declines

over the last six to seven months, none have significant resistance levels nearby. On the CCI, the first significant resistance doesn’t come until 480-500.

As we indicated in December, crude oil prices have the same three-year cyclic pattern, and were in position to put in that low sometime in the next few months as well. Crude oil has a seasonal low that comes in the winter, matching the semi-annual lows for the commodity indices.

Both crude oil and product prices have moved higher from January lows with the products making the largest moves. And the world crude oil energy benchmark, Brent crude oil prices, has been stronger than the U.S. benchmark, West Texas Intermediate grade.

Like the commodity indices, the recent lows have been close to, but above, their late 2008 lows, levels we’d consider the low end of the “modern day” range of crude oil prices.

Money is starting to flow back into commodity assets. Barclays Capital indicated total global managed commodity assets had grown $8 billion in January. That was the first increase since they peaked at the beginning of 2013.

If energy markets and the commodity indices signal a turn higher, it will enhance the possibility of seeing higher grain prices, too.

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ü2014 crop: The corn market continues its historical precedent of having a choppy, sideways market during winter.

Better selling opportunities will come; only make needed sales at this time. If you need to sell, we’d recommend a basis contract to secure cash, leaving pricing open into spring. Continue to hold 2013 crop for expected long-term improvement. ü2015 crop: Technical aspects continue to build the case for higher prices. We see no reason to price new crop at this time. Consider buying outof-the money, new-crop call options you can make cash sales against later this spring or summer. vFundamentals: Brazilian producer fuel shortages could further cut into their secondcrop corn plantings. The potentially smaller crop should help boost our export business during the summer. The Argentine government is looking for its output to only reach 30 million metric tons (mmt) this year, down 3 mmt from last year. At present, our export shipments are still running a little ahead of last year.

Page 11 • Monday, March 2, 2015 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: Brazilian logistical issues crept into the conversation this past week. They could force world buyers to keep filling short-term needs out of the U.S. Technical features still suggest better selling opportunities should be ahead. ü2015 crop: New-crop prices are taking their lead from old-crop prices. Even then, the lower insurance guarantees aren’t an incentive to plant low quality land this year.

We have no interest in pricing 2015 crop at these levels. vFundamentals: There’s been a trucker strike across Brazil for the past 10 days. The problems extend beyond the struggle to get soybeans to port. In Mato Grosso, up to 20 percent of the producers are out of fuel with that many more having low supplies. That will continue to drag on the harvest pace, one that’s already behind. The Argentine government projected a 58 mmt crop, nearly 5 mmt larger than last year’s. But government policies are expected to keep produc-

er sales to a minimum early this year.

Wheat Strategy

ü2014 crop: Given the condition of our winter crop, and Southern Plains dryness, there should be weatherinduced rallies during spring.

Better opportunities for sales are expected. ü2015 crop: Hold off making sales with prices again at the lower end of the larger long-term price range. vFundamentals: The U.S finally completed some export business with Egypt, selling them 290,000 metric tons on a tender last week. The trade still believes U.S. prices are too

high, arguing that sale was consummated only because Egypt had credit to use. Still, it’s believed the U.S. has most of the good quality wheat available to world buyers. The strong dollar is having some impact, but less than some might perceive with world prices at historically low levels.

Soon, the trade is going to focus more intently on the new-crop potential around the world. The International Grains Council initial forecast for the 2015 crop is 705 mmt, down 4 mmt from last year.

And that may be generous given condition of the winter crops.

FarmWeek • Page 12 • Monday, March 2, 2015

marks 10 years wo thouA student checks out a microscope, one of many hands-on opsand. One portunities offered to prospective students. (Photos courtesy hundred.

U of I College of ACES) Two. Ten. Throughout ACES event changed recruitWhat could all of these ranment activities for the college the years, the University of Illinois College of Agricultural, Consumer and Environmental Sciences (ACES) dom numbers possibly be event has had student Mark McKown answers questions about agriculture education during Explore ACES. dramatically. Karlie (Elliott) about? various themes, Bowman, an alumnus of the Two thousand students and changes in logos College of ACES said, 3 p.m. and March 14 from 9 Bowman said that “ACES their families. One hundred and branding, and changes in “Explore ACES is an activity a.m. to 1 p.m. Interested in has the people and resources interactive, informational and leadership. that encompassed the entire attending Explore ACES or to allow you to gather the inspiring Explore ACES is profescollege — it wasn’t just about learning more?

Connect with knowledge, experience and exhibits. Two sionally developed, student led one major or one department, Explore ACES on Facebook connections to help you exciting days to and student run, which probut about the College of or Twitter, or visit {Explore change the world.” take a closer vides a unique perspective and ACES.org.} This year, Explore ACES look. Ten years ACES as a whole.”

Bowman, a 2009 agricultur- even more meaningful experiWe can’t wait to celebrate will continue to feature interof a trademark ence for those who attend. al communications graduate, this exciting 10th anniversary active exhibits, miniclasses event.

However, it couldn’t happen and campus tours; opportuni- with you and your family!

The Univer- also said that what sets without the tremendous supExplore ACES apart from ties to network with current sity of Illinois ABBY port the steering committees other recruitment activities is Abby Marten of Effingham is a students and ACES faculty; College of MARTEN that it “is for serious students receive from College of ACES discover the numerous regissophomore majoring in agricultural Agricultural, administration, faculty and and their families to come leadership education in the U of I tered student organizations; Consumer and staff advisers.

College of ACES. Marten serves explore housing options; and Environmental have a first-class experience The overarching goal of and get a taste for the world as Explore ACES co-director of learn about available scholarSciences (ACES) is excited to Explore ACES is, and always publicity and hopes to pursue a ships and study abroad probe celebrating the 10th year of that awaits them in ACES.” Since its inception in 2005, will be, to help students find its premiere recruitment event career in leadership training and grams. their place in the College of — Explore ACES. program development in the agriculExplore ACES 2015 will Explore ACES has changed ACES. In 2005, the first Explore occur March 13 from 9 a.m. to ture industry. with the times.

T

USDA essay winners outline agricultural challenges

Food access for low-income popula- much sway. We can change policy so domestic and international rates of tions. Connecting consumers to the food insecurity and subsequent malnueveryone can access foods that are farm and food grown there. Those trition. good for them.” issues pose two of the biggest chalManaging the aforementioned sysSkenandore, a Springfield native, lenges to agriculture in the next five temic and cyclical issues, while mainearned a bachelor’s degree in animal years, according to two Illinois gradutaining an adequate food supply to feed sciences and decided to pursue her ate students. the global population of 7 billion peomaster’s degree after working at the Emily Loehmer, a Southern Illinois ple, is no simple feat. Therefore, the U of I dairy farm.

University-Carbondale (SIU-C) comagriculture sector can begin to eradi“I was pre-vet and started working munity nutrition and cate food insecurity with dairy cows to food policy graduate now by supporting get large animal expestudent, and Cassandra efforts to minimize rience for vet school.

Skenandore, a Universifood waste.

But the graduate stuty of Illinois animal sciPrioritizing food dents I worked for ence master’s degree waste as a key comwere great and really candidate, recently ponent in the continallowed me to particiwrote award-winning ued success of the pate and learn about essays on the topic. As agricultural sector their research,” said part of USDA’s Agrihas many benefits.

Skenandore. “I just By reducing food cultural Outlook Forum really loved what I waste, agriculture can Student Diversity Prowas doing every day, begin to eradicate gram, their effort and my interest and global food insecuriearned the duo a trip to passion for dairy kept ty. Food that is salgrowing. When my the recent USDA 2015 vaged and subseAgricultural Outlook master’s program is quently reintroduced over in August, I Forum in Washington, Cassandra Skenandore into the food supply Emily Loehmer hope to get a Ph.D. in D.C. and friend via traditional supera similar field.”

Loehmer, an Indiana markets or grocery Here are excerpts from farm native, currently works as a dietetstores may reduce prices of foods.

Loehmer’s essay: ic intern with the Illinois Department However, food insecure individuals According to 2012 estimates, nearly of Human Services in Chicago. one in eight people in the world suffers with no access to food also require “During my senior year at Cornell University (in New York), I took a pub- from chronic undernourishment due to consideration. Efforts must be made to transport recovered food to populalack of proper nutrition and food lic health nutrition class. We looked at tions without access who may live in intake. Therefore, the greatest chalfood access for low-income populafood deserts, or lack safe and reliable tions,” said Loehmer, who graduates in lenge facing the agriculture sector in transportation to a food source. the next five years is to diminish both August. “The agriculture sector has so

Here are excerpts from Skenandore’s essay: Unlike many people in the industry, I did not come from an agriculture background. During my undergraduate career, I became involved in agriculture and my interest in the industry has grown exponentially.

Today, I am a strong advocate for agriculture and am excited to be part of the most important sector of humanity.

Because the public knows very little about agriculture, they are heavily influenced. Many times the sources have their own agendas or reasons to sway consumers ... places like Chipotle degrade modern farming to persuade consumers to eat more of their food.

I know not all people will change, but I think if consumers were more educated as to why we do what we do, then people would start to understand more. We need to go on the offensive with our own documentaries, social media movements and campaigns.

This could in turn motivate more people to be involved in agriculture.

Imagine how many innovators and problem solvers the industry is missing out on because of the disconnect. By reaching out to consumers in other disciplines, we could very soon find ideas and technologies that allow us to feed the world easier and more efficiently.

To read the full text of the awardwinning essays, visit FarmWeekNow. com.