U.S. Ag Secretary Tom Vilsack plans to hire temporary workers to assist farmers with sign-up for new farm bill programs.............................5
Celebrate Ag Safety Awareness Week and practice its theme, “Farm Safety — Your Only Passenger.”......................................10
Corn growers who bought Agrisure Duracade seed have options despite major exporters’ refusal to accept it.........................14
A service of
Politics ‘no laughing matter’
Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life. Monday, March 3, 2014
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Two sections Volume 42, No. 9
GEARING UP FOR SPRING
IFB leaders told that state’s reputation hurts economy BY KAY SHIPMAN FarmWeek
It’s beginning to feel like spring at Heritage FS Inc.’s new agrichemical mixing facility at Gilman. Steve Rubenacker with AAK Mechanical in Clinton checks a valve on mixing equipment. The liquid portion of the new mixing facility, featuring 15,000-ton UAN capacity, opened last week with a 24/7 bay accessible to farmers. Heritage Marketing Manager Bill Romshek said the 25,000-ton dry mixing area will be completed by Aug. 1. (Photo by Ken Kashian)
Mention Illinois’ notoriety for corrupt politicians and you’ll probably get a laugh. Veteran political journalist David Yepsen did last week. However, Yepsen, director of the Paul Simon Public Policy Institute, cautioned Farm Bureau leaders their state’s political reputation hurts Illinois’ economy and chances for economic growth. “What business wants to come to a state with the reputation of pay to play?” he asked. After 34 years covering Iowa politics and presidential camDavid Yepsen paigns for the Des Moines Register, Yepsen saw his share of characters and told campaign stories, including borrowing a hotel clerk’s car to whisk candidate Joe Biden off for midnight pizza in rural Iowa. But Illinois politics are no laughing matter, according to Yepsen, who spoke during the Illinois Farm Bureau Governmental Affairs Leadership
Decisions ahead on crop revenue programs
Periodicals: Time Valued
Please see Yepsen, page 3
BY DEANA STROISCH FarmWeek
Farmers will face a series of irrevocable, one-time decisions later this year regarding new crop revenue programs. The decisions, which will affect farm income for the next five years, include whether to retain or reallocate base acres and update payment yields. Farmers also will have a choice of programs: Price Loss Coverage (PLC) or Agricultural Risk Coverage (ARC) at the county level or individual farm level.
Direct payments, countercyclical payments, ACRE and SURE programs were Jonathan Coppess eliminated under the 2014 farm bill. Additional insurance coverage was added through a Supplemental Coverage Option (SCO), which will be available in 2015. And while program details are still being worked out, University of Illinois’ Jonathan
FarmWeek on the web: FarmWeekNow.com
Coppess offered Illinois Farm Bureau members some initial conclusions on the programs: • Presuming trend yields for corn and soybeans, county ARC in 2014 would reach the cap in most Midwestern counties at prices well above the reference prices, but below USDA’s projected prices. • Individual ARC payments probably will be smaller than county ARC payments. • PLC payments are triggered when the market year average price is below the set reference price. For PLC to be effective for Midwestern corn
and soybeans, prices will have to collapse, Coppess said. • The county ARC guarantee will decline if prices remain low because it’s a rolling five-year Olympic average. • All programs make payments on base acres, not planted acres. A farm’s total base acreage cannot be increased, but farmers can keep current base acres or reallocate base acres across program crops based on a ratio of planted acres during 2009 to 2012. Please see Programs, page 4
Illinois Farm Bureau on the web: www.ilfb.org ®
Quick Takes
2013 CROP YIELDS
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QUINN PUSHES FEMA RULE CHANGES — Gov. Pat Quinn last week urged changes to the Federal Emergency Management Agency’s (FEMA) disaster aid criteria. Quinn delivered a keynote address at the National Journal’s Natural Disaster Forum in Washington, D.C. U.S. Sens. Dick Durbin, a Springfield Democrat, and Mark Kirk, a Highland Park Republican, support aid formula changes. “Disaster assistance shouldn’t be based on an outdated formula that excludes some of our hardest-hit communities,” Quinn said. The governor recounted Illinois has weathered 11 natural disasters in the last five years. Currently, the state is challenging FEMA’s denial of local government assistance following the November 2013 tornadoes. The Fairness in Federal Disaster Declarations Act of 2014 will give FEMA a clearer, more substantive formula when evaluating disaster areas and will alter a system that puts small, rural communities in highly populated states at a disadvantage, according to Quinn.
CROP INSURANCE TOOLS READY — Trying to make crop insurance decisions for your farm? Consider using the University of Illinois’ 2014 iFarm Crop Insurance Tools available at {farmdoc.illinois.edu/cropins/}. Farmers must purchase crop insurance for their 2014 spring-planted crops by March 17. The new tools include a FAST Crop Insurance Decision Tool. The spreadsheet tool, requiring Microsoft Excel, allows farmers to compute farmer-paid premiums. A “what if ” tool calculates insurance payments for user-supplied prices and yields. The tool also provides a comparison of farm yields to county yields. Other tools include a crop insurance payment simulator and a premium calculator.
ILLINOIS CHOSEN FOR NEW DIGITAL LAB — Illinois will become home to a first-of-its-kind national Digital Manufacturing and Design Innovation (DMDI) Institute, or Digital Lab, organized by the Department of Defense (DoD). President Barak Obama announced UI Labs, a Chicagobased research and commercialization collaborative, received a $70 million DoD grant and $250 million from a consortium of industry, academic, government, community and organizational supporters and partners throughout Illinois and the nation. The lab will develop innovative solutions that transform both defense and civilian industries. The lab could create thousands of jobs statewide. Partners in the new Digital Lab include John Deere, Caterpillar, Boeing and General Dynamics.
(ISSN0197-6680) Vol. 42 No. 9 March 3, 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
County yields bounce back from 2012 drought BY DANIEL GRANT FarmWeek
Crop yields around the state last year bounced back from the 2012 drought in a big way. Illinois farmers last year harvested the secondlargest average corn yield (178 bushels per acre) and third-largest soybean yield (49 bushels per acre) on record, according to Mark Schleusener, state statistician with USDA’s National Agricultural Statistics Service (NASS). Average 2013 yields in the state were up 73 bushels per acre for corn and 6 bushels per acre for beans compared to 2012. “The late planting season (in 2013 caused by cool temperatures and excessive rainfall) had a lot of farmers worried,” Schleusener told FarmWeek. “But yields for many farmers were a surprise, especially for corn.” Early-season rainfall and buildup of soil moisture combined with cool summer nights were keys to filling out the crops despite the onset of drought in many parts of the state late last growing season. Crop production last year totaled 2.1 billion bushels of corn, the third-largest crop on record, and 462 million bushels of beans, 20 percent above 2012. Illinois was the largest producer of soybeans in the nation last year. NASS recently released crop yield averages for each county in the state (see graphic). County corn yield averages ranged from a low of 136.1 bushels per acre in Perry County to a high of 200 bushels in Carroll County. County soybean yields ranged from 32.8 bushels per acre in Monroe
County to 58.4 bushels in DeKalb County. “Overall, yields were high around the state,” Schleusener said. “There wasn’t really much of a pocket of poor yields, although some individual farmers may have experienced poor yields.” The top five highest county corn yields in 2013 were in Carroll, Christian (199.8 bushels), Sangamon (198.2 bushels), Logan (198.1 bushels) and Menard/DeWitt counties had a combined average yield of 195.2 bushels. The top five highest county soybean yields in 2013 were in DeKalb, Piatt (57.1 bushels), Carroll (56.8 bushels), Edgar (56.6) and McLean (56.5 bushels) counties. Counties that produced the most corn in 2013 were McLean, Iroquois, LaSalle, Livingston and Bureau. Counties that produced the most soybeans were McLean, Livingston, Champaign, LaSalle and Iroquois. In other crop news, Illinois farmers last year harvested an average wheat yield of 67 bushels per acre, tied for the highest on record and 4 bushels above 2012. Sorghum production in Illinois last year totaled 1.88 million bushels, up 16 percent from 2012, with an average yield of 94 bushels per acre. Oat production in the state last year totaled 1.73 million bushels, up 13 percent from 2012, with an average yield of 69 bushels per acre. All hay production totaled 2.02 million tons (36 percent above 2012). More information is available at {nass.usda.gov/Statistics_by_State/Illinois}.
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Costello: Develop those personal relationships with Congressmen BY DEANA STROISCH FarmWeek
Former Congressman Jerry Costello urged Illinois Farm Bureau members to develop personal relationships with their Congressmen and hold them accountable. “Make sure that, as best you can, they know you on a firstname basis,” Costello said. “It’s easier to say no to someone you’ve never met, or on an issue that no one has ever expressed an opinion. “There is no substitute for a personal relationship,” he added. Costello, who served in Congress from 1988 to January 2013, spoke last week during the Governmental Affairs Leadership Conference in Springfield. His session was titled, “Navigating through the choppy waters of Congress.” He said Congress has been through significant changes since he was first elected in 1988. Back in the 1980s, he said, candidates ran their own campaigns and personally raised money. Today, national political parties are often heavily involved, especially in close races, he said. “Candidates today are almost forced to listen to the national party people that are sent in to run their campaigns and the political consultants,” he said. He added that “unprecedented amounts of money” have been funneled into political campaigns through super Political Action Committees (PACs). Congress operates differently as well.
Costello said committee chairmen used to control which bills would be debated. Nowadays, the leadership decides. The makeup of Congress has changed, too. He noted that there are more liberal Democrats and more conservative Republicans — and fewer moderates on both sides since the 2010 election. “The Republicans that used to reach across the aisle and work with people like me now feel threatened because of the outside money coming from super PACs as a result of Citizens United, and they have been told that if in fact you want to cross the aisle and become a moderate and work with Democrats and you’re not towing the conservative line, you’re going to have a Republican opponent in the primary.” His “strong advice” was for members to develop a personal relationship with their Congressional representatives. “When they ask you to vote for something that you do not believe in, or you don’t have strong feelings one way or the other, you always rely on your constituents,” he said. “And if you aren’t hearing from your constituents, the only people you’re hearing from are the people in Washington.” If members question a particular vote, Costello said, they should call and ask about it. “Get an explanation,” he said. “You would be surprised, many of you, how you get a returned call if you’re persistent.”
Top photo: Rep. Marcus Evans Jr., D-Chicago, shares a laugh with his adopted constituents, from left, Josh Reagor and Marc Bremer of Massac County, and Kenton Thomas and Ken Taake, Pulaski-Alexander Farm Bureau members, during a legislative reception at last week’s Illinois Farm Bureau Governmental Affairs Leadership Conference. Seventy-five legislators attended. Left photo: Rep. Laura Fine, D-Glenview, greets Logan County Farm Bureau Secretary Larry Gleason. Looking on is Logan County Farm Bureau President Blair Hoerbert. Fine and Logan County FB were matched through IFB’s Adopt-a-Legislator program. Right photo: Jim Durkin of Burr Ridge, left, Illinois House Republican leader, talks with DuPage County Farm Bureau Manager Mike Ashby. (Photos by Cyndi Cook and Kay Shipman)
Yepsen: 2014 elections may favor Republicans
Republicans may celebrate 2014 elections, veteran political journalist David Yepsen speculated last week. Yepsen, director of the Paul Simon Public Policy Institute, gave his projections during the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield. Yepsen based his predictions in part on a historical
trend that the political party controlling the White House loses more seats in nonpresidential elections. He projected the Republican Party will gain a few Congressional seats and probably will gain control of the U.S. Senate. Illinois voters also may change the state’s political dynamics. “There is a real possibility the Republicans may pick up the governorship. (Gov. Pat)
Quinn has got a lot of political problems,” Yepsen said. “I don’t want to count him (Quinn) out,” he added. The gubernatorial race may hinge on how much Republican candidates damage each other in the primary, Yepsen explained. Yepsen predicted fewer minority and young people will vote in the 2014 elections. Typically minority and young voters tend to support Democrat candidates.
Continued from page 1 Conference in Springfield last week. “The most important issue facing Illinois is ethics reform,” he said. “No one has confidence in elected officials any more.” While citizens of most states express more confidence in their own state government than the federal government, Illinois citizens believe the opposite, Yepsen noted. In fact, 75 percent of Illinoisans think their state is going in the wrong direction. And Illinois political chicanery continues — even after consecutive governors were sentenced to prison. “We still see these stories pop up” about local
officials stealing money and committing other crimes, Yepsen said. Yepsen didn’t sugarcoat his solution. In his eyes, Illinois voters and politicians need a dose of bad-tasting medicine if the state’s economy is to return to health. “It’s time to have politicians tell the truth. Tell you tough things,” but credible political leaders can tell voters bad news and be believed, he added. “We need straight talk about taxes,” Yepsen said. The state’s uncertain fiscal future and unclear tax situation scares businesses off, he said. The state also needs to reform its process of redrawing
legislative districts, Yepsen said. “Politicians shouldn’t pick their constituents; it should be the other way around,” he said to loud applause. Yepsen attributed the decline of bipartisanship to gerrymandered districts that foster candidates who pander to supporters and promise to fight opponents. “Legislators have no incentives for compromise,” he said. Fighting also surfaces in Illinoisans’ strong regional identities, a characteristic that Yepsen didn’t experience in Iowa. Politicians play the regions against each other, he noted. “We need leaders who think of the community as a whole,” Yepsen said.
BY KAY SHIPMAN FarmWeek
Yepsen
Illinois Farm Bureau President Rich Guebert Jr., right, discusses issues with David Gross, Illinois Senate Democrat chief of staff, during the second event for the ACTIVATOR Political Leadership Cabinet last week. Gross shared his views on state fiscal issues and the importance of political action last week with leadership cabinet members. (Photo by Kay Shipman)
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Cuba trade relations focus of new group BY DEANA STROISCH FarmWeek
(Above) Central Illinois Food Bank’s Kristy Gilmore, front fifth from left, accepts 90 dozen eggs and nonperishable food from the Illinois Farm Bureau Young Leaders Committee. Far right, Steve Bridge, ag director for Neuhoff Media Springfield; Kay Shipman, FarmWeek legislative affairs editor; and Mary Kobbeman, second from left, RFD Radio Network ® producer, won the eggs in an Illinois Department of Agriculture’s Good Egg media cooking contest. (Right) Steve Brummel, second from left, a Marion County Farm Bureau member, makes a donation. Left to right are Matt Rush of Fairfield, Brummel, Jared Finegan of Ashkum and Keith Mellert of Canton. (Photos by Kay Shipman and Helen Dobbyn Reedy)
Technology promising for rural areas BY KAY SHIPMAN FarmWeek
Gee-whiz laser technology — 150,000 pulses per second — is revolutionizing Illinois topographic maps and locating geological features lost to the ages. Light Detection and Ranging (LiDAR) technology provides accurate, three dimensional models of land and structures, Donald Luman, a principal geologist with the Illinois State Geological Survey, told Farm Bureau members last week. Luman spoke during the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield. An estimated three-fourths of Illinois counties acquired or are acquiring LiDAR data, but roughly 30 haven’t and time is running out, Luman warned. With assistance from a federal grant, the Illinois Department of Transportation (IDOT) is funding LiDAR data mapping,
but only two years of funding remains, he told farmers. He recommended farmers in unmapped counties con- Donald Luman tact their IDOT regional engineer and ask for LiDAR mapping in their counties. To find a statewide map of LiDAR status and to download free data, visit {http://bit.ly/1d1uUiN}. Luman explained LiDAR uses powerful, rapid laser pulses and mirrors to collect thousands of data points that are combined to create surface images. The data may be collected from moving vehicles, such as those used to create Google maps, fixedwing aircraft and helicopters. Rural Illinois and farmers alike can benefit from
LiDAR data. Luman provided several examples of lost geological features found with LiDAR. This included finding 10,000 sinkholes, a 30 percent inventory increase, in Monroe County; a lost Civil War-era coal mine in Grundy County; and a Will County long-wall coal mine support structure beneath an interstate highway. LiDAR technology also holds promising potential for increased yields. Using LiDAR measurements of a 250-acre field near Mansfield, John Deere applied new technology and doubled the yield in that field, according to Luman. “The key is being able to understand the topography of the field,” he said. LiDAR also may be used to measure building and other structure heights across a landscape. LiDAR vertical measurements are accurate within one foot, Luman said.
Nelson honored by General Assembly
Former Illinois Farm Bureau President Philip Nelson was honored in a resolution adopted recently by the Illinois General Assembly. Rep. Bob Pritchard, R-Hinckley, and Sen. Sue Rezin, R-Peru, sponsored the resolution. Nelson was commended for his dedication to
Illinois agriculture and congratulated for serving as IFB president for 10 years. “Philip Nelson’s knowledge of agricultural issues is highly regarded, resulting in expanded relationships on both sides of the aisle,” the resolution stated.
About 30 people, including representatives from Illinois Farm Bureau, last week attended the first official meeting of the Illinois Cuba Working Group in Springfield. The mission of the group, which was established by the Illinois General Assembly, is to improve relations and increase Illinois trade with Cuba. “Ag products and pharmaceutical products are exempt from the embargo,” said Mark Albertson of Illinois Soybean Association. “However, we’re not going to be able to really see any huge increases in ag exports from the U.S. until we make a few changes with policy. “We think that if we show the Cubans we are serious about changing policy then why wouldn’t that give us preferential treatment in Illinois to send our ag products down to Cuba.” Antonio Zamora, who was born in Havana, told the group that now is a “moment in time when things may be changing” in Cuba and the U.S. He pointed to increased travel recently from Florida to Cuba and a change in Florida politics. Zamora also said the CubanAmerican community supports improving relations with Cuba and ending the economic embargo. A recent poll by Atlantic Council, he said, showed the majority of those surveyed — both nationally and in Florida — were in favor of normalizing relations with Cuba and removing both travel and economic restrictions.
Programs
• Farmers can update payment yields to 90 percent of the average yields from 2008 through 2012 or keep their current payment yields at levels used for 2008 farm bill countercyclical payments. Payment yields are only used to calculate PLC. • A farm could choose county ARC and PLC for different crops — for example, county ARC for corn and PLC for soybeans. If individual ARC is selected, the choice applies to all crops. If no choice is made in 2014, all crops default to PLC in 2015 and the farm forfeits any potential 2014 payments. Coppess, ACES clinical assistant professor, also provided detailed examples of how each program would affect farms. Continued from page 1
But change isn’t going to come from Congress, he said. “We have to look at the White House administration for changes,” he said. The group plans to send a letter to President Barack Obama requesting his support. Terry McCoy, professor emeritus and director of the Latin American Business Environment Program at the University of Illinois, agreed change would have to start with the executive branch. He said the United States’ interests would improve by working toward a “negotiated normalization.” The current policy, he said, hasn’t worked. “The United States has not isolated Cuba,” he said. “The United States is isolated by this policy.” He added later that the U.S. is becoming “irrelevant” in Latin America because of its stance on Cuba. The U.S. is Cuba’s fifth largest trading partner overall, according to Bill Messina, agricultural economist at the University of Florida. During 11 of the last 12 years, the United States was Cuba’s largest food and ag product import supplier. Brazil was No. 1 in 2011, Messina said. He noted that Brazil is become an increasingly important player in Cuba. In 2013, corn and soybean imports dropped “dramatically.” Argentina took over the U.S. share, he said. He said it’s challenging to try to predict future prospects for U.S. food and agricultural sales to Cuba.
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The scenarios, along with additional detailed information, will be provided during a Farmdoc webinar at 8 a.m. March 5. The webinar is free, but registration is required. To register, visit {farmdoc.illinois.edu/webinars}. Follow the instructions on each particular webinar event “Details” page. “No decisions are happening immediately,” Coppess told FarmWeek. “There is time here to think through it, walk through it and try to understand the programs better.”
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USDA to educate farmers about farm bill selections BY DANIEL GRANT FarmWeek
USDA this year plans a major educational effort to help farmers understand the new farm bill so they can make informed decisions prior to sign-up. The new farm bill, unlike the prior bill, included $3 million for educational efforts. The ag department will use some of the money to coordinate those efforts with land grant universities and to create web-based tools for farmers. “The first thing we did is we had every title of the bill analyzed internally to see what was changed, what’s new, what was tweaked and what was eliminated,” Ag Secretary Tom Vilsack said
at the Commodity Classic in San Antonio, Texas. “We want to find the simplest and most effective ways to (implement) it.” USDA reduced Farm Service Agency employees and closed some offices around the country in an effort to streamline operations, posing a challenge to farm bill implementation. USDA subsequently will hire temporary employees to assist with implementation of new farm programs. The farm bill included $100 million for implementation and a portion of that will be used to bolster staff, Vilsack said. “It obviously will place a strain (on USDA resources). We have fewer peo-
ple due to constrained budgets,” Vilsack said. “But we asked for it and we’re going to implement it. It’s a good, solid bill.” Vilsack said USDA will go to great lengths to educate farmers so they understand the bill prior to sign-up. It is believed many farmers didn’t participate in the ACRE program in the previous farm bill because they didn’t understand the program. “At the end of the day, we want to make sure farmers are as informed as they can be when they select coverage options,” Vilsack said. Vilsack believes the bill will provide a safety net for farmers, allow some to
expand and provide opportunities for beginning farmers to enter the business. The bill will provide new credit opportunities, easier access to insurance and different risk management opportunities for beginning farmers. It also will help create bio-based manufacturing opportunities and expand ag research. “For far too long, we’ve underfunded research efforts,” Vilsack said. “We have to step up investments in research if we’re going to increase productivity.” The farm bill will allow USDA to leverage about $400 million in investments for ag research.
USGC: Farmers should adhere to biotech stewardship The U.S. Grains Council (USGC) this year will continue to negotiate with leaders of other countries for the rapid approval of biotech varieties. In the meantime, USGC last week urged farmers, shippers, technology providers and others to carefully adhere to stewardship responsibilities to minimize the risk of disrupting export sales. China, among other countries, in recent months rejected loads of U.S. corn due to the presence of an unapproved biotech event. “We believe in free trade and we believe U.S. producers should have access to technology,” Tom Sleight, USGC president and CEO, said last week at the Commodity Classic in San Antonio, Texas.
“The sad part is, biotechnology approval systems around the world are not synchronous,” he continued. “So we’re Tom Sleight stressing (domestically) the fact that it could be a trade disruption if (biotech) stewardship is not followed closely.” Farmers and grain shippers essentially were asked to take all steps necessary to ensure grain with nonapproved biotech events isn’t co-mingled with export-bound varieties. “Farmers need to be aware of the consequences in our
market,” said Julius Schaaf, USGC chairman. “We can use these traits on our farms and not disrupt export trade.” USGC, Julius Schaaf which has operated in China for 30 years, currently is negotiating with Chinese ag officials to speed the process of biotech approvals. But consumer concerns there weigh on the process. China also has the leverage of a record domestic corn crop produced last year. “We’ve been talking with China about biotechnology,” Sleight said. “It’s a very sensi-
tive issue in China. We’re facilitating acceptance.” U.S. corn exports to China this year could decline about 68 million bushels. But U.S. sales of distillers grains to China are expected to set a new record. Overall, U.S. corn exports this year could double after dropping to a 43-year low a year ago. “Exports have rebounded pretty aggressively,” said Sleight, who reported increased sales to Japan, South Korea, Taiwan and Mexico. “We may even double what we did last year.” USGC recently released a corn quality report and noted the 2013 corn crop generally meets all export quality standards despite some pockets of
high moisture and low test weights. “The message to customers is we are very consistent with quality,” Sleight said. The 2013 corn crop had low total damage (0.9 percent compared to 1.1 percent in 2011) and significantly higher starch compared to 2012. But the average elevator sample moisture of 17.3 percent in 2013 was higher than each of the past two years, according to the USGC corn quality report. — Daniel Grant
impacted if planting is late. “We’re probably not going to see a trend line yield around 165 bushels per acre (for corn if the crop is planted late or in less-than-ideal conditions),” Newsom said. “It more realistically could be around 160 bushels.” Corn production also could be limited by drought conditions in the Southern Plains and western U.S. Prices for crops therefore could remain steady, particularly if demand improves. USDA recently projected domestic corn demand this year will reach a record 13.3 billion bushels. Ethanol demand should remain steady, around 5 billion bushels, and feed demand could increase if improved livestock margins encourage some expansion of herds and flocks this year. USDA recently predicted feed use this year will increase by about 1 billion bushels. — Daniel Grant
Leaders of the American Soybean Association (ASA) and National Corn Growers Association (NCGA) last week at the Commodity Classic expressed relief that a new farm bill recently was enacted. It should give producers more certainty with a safety net as they prepare for planting at a time when crop prices are down considerably from recent years. “After three long years, we’re happy to say it passed,” said Ray Gaesser, ASA president and an Iowa farmer. “It reinforces the safety net.” But, even with the passage of the long-awaited bill, the commodity groups still have a long list of priorities this year including issues with biotechnology, biofuels and trade. NCGA and ASA, along with the American Farm Bureau Federation, are part of the Coalition for Safe and Affordable Food, which calls on Congress to establish a standard for safety and labeling of food that contains biotech ingredients. “There’s no doubt GMOs (genetically-modified organ-
isms) have been a hotbutton issue in recent years,” said Martin Barbre, NCGA president and Illinois farmer. Martin Barbre “We seek a common sense approach that respects science and consumers.” A number of states attempted to pass GMO labeling laws in recent years, much to the dismay of many growers. “If we get a patchwork of state laws, and I’m shipping corn out of state, how would I even certify that,” Barbre questioned. “I can’t even envision that.” ASA also is working with USDA to address delays in the biotech approval process. A quicker approval process not only would get useful technology into the hands of farmers, but benefit consumers as well, according to Wade Cowan, first vice president of ASA and Texas farmer.
“New high oleic beans will be a great advantage to consumers,” he said. “They will provide a much healthier alternative for those who use vegetable oil.” In other news, ASA and NCGA will keep pressure on the Obama Administration to maintain current biofuels benchmarks in the Renewable Fuel Standard. The Environmental Protection Agency proposed cutting ethanol use standards by 10 percent even though corn is much more plentiful and prices are lower this year. “We don’t know when the decision will come down, but we’ll keep pressure on the administration,” Barbre said. Proposed cuts to biodiesel usage could reduce production from 1.8 billion gallons to 1.2 billion gallons. “That will substantially reduce our market,” said Danny Murphy, ASA chairman and Mississippi farmer. “We have the raw materials and infrastructure in place to grow this market.” — Daniel Grant
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We h a v e c o m m e n t s f r o m U S G C C E O To m S l e i g h t about biotech stewardship at FarmWeekNow.com.
Market analyst: Winter ASA, NCGA focused on biotech, biofuels could delay planting
The calendar flipped to March over the weekend and spring is just weeks away. But the start of the planting season remains a distant thought as wicked winter conditions continue to grip the Midwest. “The idea of early planting this year has gone by the wayside,” Darin Newsom, DTN senior analyst, said last week at the Commodity Classic in San Antonio, Texas. “The ground is frozen in the majority of the Corn Belt.” USDA last month predicted farmers this spring will plant 92 million acres of corn and 79.5 million acres of beans. Newsom, however, believes the bean acreage estimate is a bit high. He predicted bean prices will be pressured this spring when world soy demand shifts from the U.S. to record supplies in South America. Meanwhile, U.S. corn production this year could be
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USDA predicts modest expansion in livestock sector BY DANIEL GRANT FarmWeek
Feed prices declined substantially in recent months and livestock margins generally are in the black. But that doesn’t mean herd and flock numbers will multiply this year. USDA this month predicted modest expansion in the livestock sector this year. “We anticipate there will be incentives for (livestock) producers to respond (with increased production),” Shayle Shagam, USDA senior livestock analyst, said last month at the USDA Ag Outlook Forum. “Feed prices should decline further into the 201415 crop year.” Livestock prices, on the other hand, should remain near current levels or increase this year. USDA projected average prices this year of $132 to $140 per hundredweight for cattle (up 8 percent) and $61 to $65 for hogs (down 2 percent). Price estimates for broilers were down 2 percent, while turkey was up 3 percent. USDA also forecast milk prices would increase this year to $21.55 per hundredweight for all milk and $19.05 for the Class III price. The number of dairy cows in the U.S. this year was projected to increase three-tenths of a percent. Expansion in the livestock sector could be modest, though, due in part to biological limitations in the cattle sector and issues with porcine
epidemic diarrhea virus (PEDV) on swine farms. “The main driver (of cattle prices) is tight supplies,” Shagam said. “We think contraction will slow in 2014 and there may be signs of expansion (in the form of strong cow/calf returns).” The U.S. cattle herd last year declined for the seventh consecutive year to 87.73 million head, which is the smallest herd since 1951. USDA last month reported the number of cattle and calves on feed as of Feb. 1 totaled 10.8 million head, down 3 percent from a year ago. “(Cattle) producers seem to be reluctant to expand until
they’re assured there is enough forage,” said USDA chief economist Joe Glauber, who
possible this year. The inventory of hogs and pigs as of Dec. 1 totaled 65.1 million
‘We anticipate there will be incentives for (livestock) producers to respond (with increased production).’ — Shayle Shagam USDA senior livestock analyst
noted producers in the drought-stricken Southern Plains since 2011 trimmed herds by 1.3 million head. “It takes time to rebuild herds.” USDA predicted hog producers could expand herds if
head, down 1 percent. “We look for a modest increase (in the swine herd), depending on PEDV,” Shagam said. PEDV was found in the U.S. swine herd last spring and
since that time spread to 25 states. About 250 new cases per week were reported in January. “Every week we seem to set a new record in cases,” said Liz Wagstrom, chief veterinarian for the National Pork Producers Council. “We estimate 4 million (piglets) died from it.” A slight increase in the hog inventory was based on a modest increase in farrowings this year, Shagam added. Overall, U.S. meat production this year could decline 5.3 percent for beef and increase 1 percent for pork and turkey and 2.8 percent for chicken, according to USDA.
Drought, livestock issues could pressure food prices U.S. consumers received an unexpected break in food price inflation last year. The consumer price index for all food in 2013 actually declined two-tenths of a percent despite higher prices for some products such as meat. But the price relief likely will end as consumers this year should expect more typical inflation of food prices in the range of 2.5 to 3.5 percent, according to Richard Volpe, economist for USDA’s Economic Research Service. “We’re looking for average food price inflation (in 2014),” Volpe told FarmWeek recently at the USDA Ag Outlook Forum. “The historical average (increase) is 2.8 percent per year.” Some of the largest price increases could occur in the beef, poultry, dairy, seafood, fruits/vegetables and nut sectors, among other areas. Beef and poultry prices this year could increase as
much as 4 percent, USDA projected. “We expect stronger inflation for most meats, especially beef and poultry, and probably for fruits and vegetables,” Volpe said. “We expect lower inflation for things like breads, cereal,” other bakery products and eggs. Beef prices are expected to remain on an upward trend due to historically low inventories of cattle. The U.S. herd currently is at its lowest level in more than six decades. “In 2013, we had record-high (beef) prices,” said Shayle Shagam, USDA senior livestock economist. “We expect meat prices to be even higher in 2014.” Meat prices last year averaged $5.29 per pound for choice beef, $3.61 for pork and $1.96 for chicken. Cattle numbers declined nationwide in recent years due in part to drought issues in the Southern Plains and southwest.
Meanwhile, hog inventories tightened last year due to an outbreak of porcine epidemic diarrhea virus, which is deadly to piglets and continues to spread. Elsewhere, drought in California also could impact the price of foods such as fruits, vegetables, nuts and dairy products. California, which produces about onethird of vegetables and two-thirds of fruit and nuts produced in the U.S., currently is consumed by drought conditions that range from severe to exceptional in key growing areas. “There’s no evidence yet of an impact on fruit and vegetable prices (caused by the California drought),” Volpe said. “But it’s becoming increasingly expensive to draw water from the ground to irrigate. “If farmers respond by growing fewer crops (in California), I think we could see a reverberating impact (on food prices) for years to come.” — Daniel Grant
Influx of data only useful if farmers learn to manage it Farmers have collected data on their farms for years through devices such as yield monitors and equipment sensors. But expanding and managing farm data is critical if farmers want to get more bang for their buck with all the information by improving efficiencies and reducing inputs. Joaquin Silva, of Carlsbad, Calif., believes in the future of precision farming so much he co-founded a precision ag information service, TerraVu. “Agriculture has a big challenge,” Silva said at the USDA Ag Outlook Forum in Arlington, Va. “Efficiencies need to increase to double yields.” Farmers also face the threat of increased regulations that could affect farming practices such as fertilizer rates. That’s where data-driven
technology can help farmers become more efficient and reduce their environmental impact. “We can increase yield while reducing input costs and reducing the environmental impacts through a real time information service,” Silva said. “It’s about building an information superhighway that empowers growers to make decisions.” TerraVu uses soil sensors at multiple levels to collect real time soil moisture information. Soil moisture and temperature readings, combined with USDA pest risk models, also can help farmers more accurately select the type and timing of pesticide applications. More farmers are using precision farming in California in response to a severe drought there. Some California farmers lost 50 percent of their water rights and must either
use water more efficiently, dig deeper water wells which increases power costs or not plant a crop this year. “Over-irrigation has been a problem in California, but that’s changing rapidly,” Silva said. “We have the ability to vary irrigation rates.” TerraVu’s approach utilizes precision field monitors combined with wireless data collection and overlays it with imaging information. “Data is only valuable if it results in actionable information,” Silva said. “Our ability to get real time information to make decisions and fertilizer rates and pesticide applica-
tions really is the holy grail of data management.” Agribusinesses are banking on it. TerraVu leveraged about $100 million in investments for core technology. Elsewhere, St. Louisbased Monsanto this month took another step to build its farm support business with the acquisition of soil analysis company Solum Inc. That company will become part of The Climate Corporation, a weather data and technology firm Monsanto acquired last year. “Each season, farmers face a wide range of soil-
related decisions that can help them improve the productivity of the finite land they farm,” said David Friedberg, CEO of The Climate Corp. “With more accurate and consistent data input, the insights and recommendations we provide for farmers can be more precisely customized to their fields, helping them make better decisions for their farms,” he added. The Climate Corp. will continue to offer Solum’s real time measurement of soil nitrate levels. — Daniel Grant
Ag lime seminar set for April
The importance of ag lime as a soil amenity will be the focus of an April 9 seminar from 9 a.m. to 12:30 p.m. at the Crowne Plaza Hotel in Springfield. Discussion topics will include ag lime impact on root growth, quality testing and analysis methods, soil pH and yield
response, and ag lime processing for increased quality. Sponsored by the Illinois Association of Aggregate Producers in conjunction with the Illinois Fertilizer & Chemical Association, the seminar registration fee is $50 per person. To register, visit {iaap-aggregates.org}.
EMERGING ISSUES
Page 7 Monday, March 3, 2014 FarmWeek
GROWMARK, Deere collaborating on farmer field data GROWMARK and John Deere have joined forces to deliver near real time field level data to producers and FS Crop Specialists. The effort will help farmers focus on improving yields and productivity. GROWMARK is among the first agricultural retailers to leverage the Wireless Data Transfer Application Programming Interface (API) for its precision agronomy decision support software. The companies are linking FS Advanced Information Services (FS AIS), a suite of precision agronomy software, with John Deere Wireless Data Transfer, JDLink™ and MyJohnDeere. “Farmers with John Deere equipment can choose to share their data with us. It’s an exciting opportunity. This is a tremendous platform to allow farmers to interact with multiple people who can help them in their operations,â€? said Ron Milby, GROWMARK executive director of agronomy marketing. Diagnostics on equipment can show farmers how much time they’re spending on the road or indicate fuel efficiency, Milby added. Fertilizer applications can be relayed from spreaders as well. “Through this collaboration with John Deere and our soft-
ware partner, AgIntegrated Inc., we are making it easier for our crop specialists to work with farmers using near real time data,� said Milby. “The open platform John Deere provides enables farmers and FS company staff to use the FS AIS software to make decisions in near real time — that’s a win-win.� Producers will utilize an efficient and secure interface between FS AIS and MyJohnDeere, taking advantage of both companies’ commitment to supporting better decisions through improved data integration at the field level. GROWMARK and John Deere, through a nonexclusive arrangement, plan to make the service available to anyone who has been equipped by a John Deere dealer for Wireless Data Transfer and has subscribed to the FS AIS software. Each company will market its software and solutions through existing localized distribution channels. “The collaboration with GROWMARK is a prime example of John Deere working with our customers’ trusted advisors,� said Pat Pinkston, John Deere Vice President of Technology and Information Solutions. “John Deere is committed to increasing customer success by enabling data to be available when and where needed.�
Livestock producers should plan to begin signing up for USDA disaster program assistance April 15. Under the 2014 Farm Bill, the Livestock Indemnity Program (LIP) and Livestock Forage Program (LFP) will provide retroactive coverage for eligible losses back to Oct. 1, 2011. LIP provides compensation to livestock producers who suffered livestock death losses in excess of normal mortality due to adverse weather and attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators. LFP provides compensation to eligible producers who suffered grazing losses due to drought and fire. Livestock producers should record all pertinent information of natural disaster consequences, including: • Documentation of the
number and kind of livestock that have died, supplemented if possible by photographs or video records of ownership and losses. • Dates of death supported by birth recordings or purchase receipts. • Costs of transporting livestock to safer ground or to move animals to new pastures. • Feed purchases if supplies or grazing pastures are destroyed. • Crop records, including seed and fertilizer purchases, planting and production records. • Pictures of on-farm storage facilities that were destroyed by wind or flood waters. • Evidence of damaged farm land. USDA officials are still interpreting farm bill program regulations. Additional information will be provided once the enrollment period is announced.
BY CHRIS ANDERSON FarmWeek
FOOD LABEL SCAVENGERS
Illinois Field Moms track down grocery items needed to complete a food label scavenger hunt. From left, Jill Thurmond of Deer Park teams with Heather Caulfield of Mount Prospect and Sarah Decker of Grayslake to learn the nutritional value of food. The recent tour at Ultra Foods in Wheaton marked the moms’ first Illinois Farm Families’ activity of the year. (Photo by Ken Kashian)
Energy scientists support FFA science fair
At the Illinois FFA AgriScience Fair, the state education initiative for energy careers again will join the Illinois FFA Foundation and the state education initiative for ag, food and natural resource careers. The Energy STEM (science, technology, engineering
Disaster signup starts April 15
and math) Learning Exchange will provide funding for the science fair during the June state FFA convention. The group also will select the top five energyrelated projects and provide prize money. Last year, the energy fair judges represented Illinois State University, Com-
monwealth Edison and Ameren. FFA members are encouraged to develop agriscience fair projects, especially ones with an energy focus. Eligible energy projects include smallscale energy systems, energy systems of the future and renewable energy systems.
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ENERGY
Winter feeding volatile electricity markets FarmWeek Page 8 Monday, March 3, 2014
BY KAY SHIPMAN FarmWeek
Electricity markets, traditionally volatile, whiplashed in January and may burn some consumers when higher costs are passed along. This winter’s record-breaking cold spurred demand for heat and caused wholesale electricity markets to spike, Duane Noland, president and chief executive officer of the Association of Illinois Electric Cooperatives, told FarmWeek. How volatile were they? For Jan. 7-9, wholesale day-
the real time cost shot up to $1,780 per megawatt hour compared to a range of $180 to $200 days earlier. Prices for municipalities’ aggregated electric loads seem low and attractive, but looks may be deceiving after this winter, according to Frasco. “If you buy power and pay Lynn Frasco $1,780 (per
megawatt hour), but sold ahead to consumers for $40, that’s a tough position to be in,� Frasco said. “You’ll start to see an increase (in electric prices) as wholesalers bear this cost (volatility).� Meanwhile, Menard Electric and other cooperatives invest in steel as owners of stable, long-term power suppliers, Noland noted. “They are generating electricity and stabilizing their (power) source,� he said. “Our prices are higher, but for the long term, we think we are more stable.�
Volatility is one reason why cooperatives and others urge the nation to continue to get its power from various sources and to reconsider proposed federal rules that would essentially eliminate coal-fired power plants, according to Noland. “Times when prices spike dramatically — that’s the whole issue with energy reliability,� Noland said. “In the electric industry, we worry about (demand) peaks and weather. What if we can’t meet demand?�
law enforcement. In one case, DNA from a thief ’s water bottle left at the scene helped solve a crime, he explained. Metal thefts, especially of irrigation equipment, increase along with the price of scrap metal. Gann reported state laws related to sales at scrap metal yards have helped solve some thefts. Thefts of tractor batteries are the latest trend in his county, according to Gann. “They (thieves) come right up to the tractor and take it off,� he said. — Kay Shipman
Crops join microorganisms in benefitting from nitrogen fertilizer. When farmers wonder where soil-applied nitrogen goes, microbes hold one of the answers, according to a microbiologist with the University of Illinois College of Agricultural, Consumer and Environmental Sciences. “We’re most interested in what happens to fertilizer on the field. Some of it is eaten by microorganisms,� Allana Welsh recently told Mason Allana Welsh County farmers. Part of a brand new field, Welsh is studying soil microbe communities in Urbana and Havana and comparing the differences between those in heavier soils with those in sandy soils. She extracts the soil organisms’ DNA from soil samples and identifies different communities from their unique “finger-print� characteristics. “We can tell one (soil com-
munity) from another and can compare different groups in different soils,� she explained. Not surprisingly, the microorganisms in Urbana differ from those that call Havana soils home. Not only do microorganisms differ in different soils, but they also differ from shallow to subsoil communities within the same soil. At first, the researchers speculated soil pH played an important role in the microbe differences, but now they wonder whether temperature and moisture also make an impact, according to Welsh. In real time measurements, she learned upper soil temperatures varied from 103 to 86 degrees over 24 hours, while subsoil temperatures stayed constant. “The goal is to measure the total organic carbon in the soil and to be able to tell you what will happen to nitrogen you put on your fields,� Welsh told the farmers. “Our field is growing in leaps and bounds. What we will be able to do in five years is not even imaginable,� she concluded. — Kay Shipman
United Egg Producers and the Humane Society of the United States announced the groups’ original 2011 agreement “to jointly petition the federal government for federal legislation for the purpose of transitioning the industry from primarily a conventional cage egg production business to enriched colony cage housing over a period of years� will not be extended. The agreement specified federal legislation to mandate a phased-in move to enriched cage housing for all commer-
cial layers in the U.S. The estimated industry cost of this action over the next 15 to 17 years was approximately $4 billion. The two groups attempted to pass legislation twice in both the Senate and House without success. The American Farm Bureau Federation opposes any laws mandating specific farming practices in livestock production, but supports the rights of individual commodity groups to develop voluntary national production standards.
ahead prices hovered around $100 per megawatt hour, but on Jan. 27-28 skyrocketed to nearly $350 per megawatt Duane Noland hour. “This is the volatility of the wholesale market,� said Lynn Frasco, general manager of Menard Electric Cooperative. Frasco illustrated last month’s volatility. On Jan. 7,
Farmers advised to be alert for metal thefts U of I scientist seeks nitrogen Farmers serve as their own best defenses when Gann advised farmers not to examine the answers from soil microbes it comes to metal thefts, according to Mason scene of a potential crime before contacting
County Sheriff Paul Gann. Gann advised farmers to be alert for suspicious tire tracks and other signs of thieves or trespassers. “As you make checks, you know where there should and shouldn’t be tracks. When you notice something, get on the phone and let us know,� he recently told a group of farmers. Gann said one alert farmer immediately contacted the sheriff ’s office, and his stolen property was returned, thanks to his quick action.
You Y ou ha have ve options. opti ons. When it comes tto o selecting yyour our propane propane supplier, supplier, you you have have switching options. And switc hing to to FS has never never been easier. easier. ,I \RX¡UH ORRNLQJ WR ÀQG D SURSDQH VXSSOLHU ZKR LV FRPPLWWHG to providing you the professional, knowledgeable and GHSHQGDEOH VHUYLFH \RX GHVHUYH EH FRQÀGHQW LQ FKRRVLQJ FS. Y You’ll ou’ll enjoy peace of mind knowing that you can depend on our convenient 24/7 service and that your system is VDIH ZLWK RXU SHULRGLF OHDN DQG VDIHW\ FKHFNV 2XU à H[LEOH SD\PHQW RSWLRQV ÀW \RXU QHHGV VR WKDW \RX FDQ IRFXV RQ \RXU family and not your propane bill. So when you need a reliable propane supplier, remember your best option – FS. Contact your local FS Member Company today and let us help make your house feel like home.
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Š2013 GROWMARK, Inc. A14243
Egg agreement terminated
CROP QUALITY
Page 9 Monday, March 3, 2014 FarmWeek
Soy quality improves with 2013 crop A recent soybean checkoff-funded study found the 2013 Illinois soybean crop, on average, met minimum industry standards for protein and exceeded standards for oil. The slight improvements over the 2012 crop could put up to 24 cents more per bushel into Illinois farmers’ pockets. “While protein and oil levels were higher, we can’t yet attribute the increase to any one factor. We do know that weather plays a role and can affect averages in any given year,” said Bill Raben, ISA chairman and Ridgway soybean farmer. In the second year of the three-year study, average protein levels from more than 500 Illinois soybean samples met an industry target of 35 percent. Average oil content came in at 19.2 percent, just above the industry target of 19 percent. In 2012, state protein and oil averaged 34.3 and 19 percent, respectively. “Farmers may not understand how closely composition levels are tied to the price they receive for their soybeans, but they actually get paid less for beans with lower protein and oil levels,”
said Sharon Bard, coordinator with Centrec Consulting Group, the firm that analyzed the samples. “Soybeans with at least 35 percent protein and 19 percent oil content provide optimal value to buyers in today’s market.” As part of the study, Centrec also calculated the Estimated Processed Value (EPV) on a per-bushel basis. Using the same soybean meal and oil prices for
Forage Institute planned March 13
The Illinois Forage Institute will run from 9 a.m. to 4 p.m. March 13 in the First Christian Church’s Family Life Center, Greenville. The early registration deadline is Wednesday. In addition to informational presentations, the event will include commercial exhibits related to the forage industry. Morning topics include harvesting baleage, soil fertility management for hay and pastures and corn residue as a winter feed alternative. Afternoon topics include hay storage and feeding methods to minimize losses, weed management for hay and pastures, forage insurance availability and selecting forage species. Speakers will represent the University of Illinois Extension, the Natural Resources Conservation Service and the Illinois Forage and Grassland Council (IFGC). The fee is $15 per person for IFGC members and $20 for nonmembers who register by Wednesday. After that date, the fees will be $20 and $25, respectively. The fee includes lunch and handout materials. Checks should be made to Illinois Forage and Grassland Council. Registrations may be mailed to Bond County Soil and Water Conservation District, 1111 E. Harris Ave., Greenville, Ill. 62246. For more information or an agenda, visit {illlinoisforage.org}.
both 2012 and 2013 protein and oil averages, EPV for 2012 on average was $14.33 and EPV for the 2013 was $14.57. Assuming a 20 centper-bushel processing margin, farmers could have received $14.13 for soybeans with the 2012 average protein and oil versus $14.37 for soybeans with the 2013 averages. That’s 24 cents more per bushel for soybeans with the higher protein and oil content. Work continues this year when soybean samples will be collected from elevators across the state. “Ensuring levels beat minimum standards in years to come is as simple as picking soybean varieties with optimum yield potential, and then asking your seed dealer for the protein and oil data on those varieties,” Raben added.
Datebook March 4 Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Civic Center, Mendota. Visit {ifca.com} for registration form. March 5 Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Monsanto Research Farm, Monmouth. Visit {ifca.com} for registration form. March 6 Illinois Ag Legislative Day, State Capitol, Springfield. Cover crop seminar, 8:30 a.m., Monticello Community Building, Monticello. Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Oakley Lindsay Center, Quincy. Visit {ifca.com} for registration form. March 7 Illinois Fertilizer and Chemical Association anhydrous ammonia safety school, Hilton Garden Inn, Springfield. Visit {ifca.com} for registration form. March 7-9 Illinois Horse Fair, Illinois State Fairgrounds, Springfield. Visit {HorsemensCouncil.org/HorseFair}. March 11 University of Illinois Extension cow-calf meeting, 5 p.m., Oblong Community Center, Oblong. To register, call 217-826-5422 by March 5. March 12 University of Illinois Extension cow-calf meeting, 5 p.m., Monroe County Fairgrounds, Waterloo. To register, call 618-939-3434 by March 6. March 13 Conservation cropping seminar, Normal. Visit {ccswcd.com} for information. 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 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, starts 10 a.m., Ewing Demonstration Center, Ewing. To register, call 618-439-3178. March 31 Cover crop education meeting, 10 a.m.-2 p.m., Fife Opera House, Palestine. Register by March 12. Call 618-544-7515, ext. 3.
Make FAST STOP your first stop.
Chicago Farmers to discuss farm policy
The Chicago Farmers will discuss U.S. farm policy and the farm bill from noon to 1:30 p.m. March 10 in the Illini Center, 200 S. Wacker Drive, Chicago. Nick Paulson, University of Illinois agricultural finance professor, will share his insights. A question-and-answer session will follow his presentation. The registration fee before March 3 is $25 for members and $35 after that date. The nonmember cost is $50 before March 3 and $60 after that date. For information, call 312-388-3276.
Whether you are looking to fill your tank or your coffee cup, look to your locally 300 conven convenient locations across the owned and operated FAST FAST AS STOP.® With nearly 300 Midwest, chances are, we’re right on the wayy.
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FARM SAFETY
FarmWeek Page 10 Monday, March 3, 2014
Employ tractor rider safety ASAP
While it’s tempting to enjoy some family time in the tractor cab with your children, remember this rule — one seat, one passenger. This week marks Ag Safety Awareness Week with the theme, “Farm Safety — Your Only Passenger.” The one seat rule extends to ATVs and combines. “Farming is a family business. Sometimes, there are additional family members or employees riding along on farm equipment when they shouldn’t be,” said Peggy Romba, Illinois Farm Bureau program manager. “If there’s no buddy seat, farmers shouldn’t have a passenger.” Romba encourages farmers to leave children at home when working in and around tractors. Forty-one percent of accidental farm deaths of children under age 15 occur around tractors, she noted. Yet, four out of five children regularly ride tractors with family members. The national Agricultural Safety Awareness Program (ASAP) urges farmers to practice the following safety guidelines: • No extra riders. • Keep children and others away from work areas. • Shut down equipment, shut off the engine, remove the key and wait for moving parts to stop before getting off the tractor. • Use rollover protective structures and seatbelts to prevent falls or being ejected from the tractor. ATVs post dangers, too. About 40,000 children under the age of 16 are treated in emergency rooms each year for ATV-related injuries. ASAP program guidelines ensure ATV safety can be achieved by always wearing a helmet and protective gear. Select the right size ATV for the rider. Never carry multiple riders. Keep ATVs for off-road use only. And inspect ATVs before every ride. For more safety information, visit {agsafetynow.fb.org}.
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DELICIOUS MATH LESSON
What do M&Ms have in common with counting, graphing and color coding? They combine for a sweet agricultural lesson about chocolate harvest and processing. Andrea Weirather, a pre-kindergarten teacher at Washington School in Rushville, helps her students with a lesson provided by Schuyler County Farm Bureau Ag Literacy Coordinators Jean Barron and Haley Kelly. The duo taught the chocolate lesson to pre-kindergarten through fourth grade students. (Photo by Jean Barron)
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EDUCATION
FarmWeek Page 12 Monday, March 3, 2014
Consider feeding hogs human food co-products
Co-products from the human food industry offer a lower-cost alternative to cereal grains in diets fed to pigs. Research at the University of Illinois is helping determine the nutritional value of these ingredients so producers can make informed choices about incorporating them into swine diets, said Hans H. Stein, a U of I animal science researcher. Researchers measured concentrations of digestible and metabolizable energy in distillers dried grains with solubles (DDGS), hominy feed, bakery meal, corn gluten meal, corn gluten feed and corn germ meal. A second experiment looked at standardized total tract digestibility of phosphorus in pigs fed diets containing the previously mentioned ingredients without or with the addition of microbial phytase. Corn gluten meal contained 5,379 kilocalories of digestible energy per kilogram of dry matter, more than in any of the other ingredients. The digestible energy (DE) concentrations in DDGS (4,062 kcal/kg), corn (4,032 kcal/kg), bakery meal (3,951 kcal/kg) and hominy feed (3,819 kcal/kg) were
FEDERAL LEGISLATION DISCUSSED
similar. Corn gluten feed (3,553 kcal/kg) and corn germ meal (3,437 kcal/kg) contained less digestible energy than all the other ingredients. However, corn gluten meal had the greatest concentration of metabolizable energy (ME) at 4,400 kcal/kg dry matter followed by corn (3,891 kcal/kg), DDGS (3,694 kcal/kg), hominy feed (3,675 kcal/kg) and bakery meal (3,655 kcal/kg). Corn gluten feed (3,169 kcal/kg) and corn germ meal (3,150 kcal/kg) contained the least metabolizable energy. “The main reason DE and ME concentrations are greater in corn gluten meal than in corn is that corn gluten meal contains more crude protein and less fiber,” Stein explained. “Hominy feed, DDGS, corn gluten feed, and corn germ meal contain much more fiber than corn, which contributes to their lower energy digestibility,” he said. The National Pork Board and Nutrition Efficiency Consortium provided funding for the studies. More research results are available at {journalofanimalscience.org/content/91/11/5326.full}.
U.S. Rep. John Shimkus, R-Collinsville, left, and Sen. Mark Kirk, R-Highland Park, talk with Vermilion County Farm Bureau members. The recent discussion focused on the new farm bill, national debt, tax reform, Renewable Fuel Standard and Section 179 depreciation. The meeting was hosted by the Farm Bureau Legislative & Local Affairs Committee chaired by Mike Marron. (Photo by Tom Fricke, Vermilion County Farm Bureau information director)
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Cover crop field days scheduled in March Four upcoming cover crop field days will highlight topics ranging from livestock grazing to soil compaction reduction. MATTOON, MARCH 19 — Sponsored by the Coles County Soil and Water Conservation District and Natural Resources Conservation Service, the field day will be from 9 a.m. to noon in the Douglas Hart Nature Center. Topics will include understanding where cover crops fit your farming operation, soil health, cover crop benefits, cost share opportunities and crop insurance. There is no charge and a meal will be provided. Registration is due by March 14 at 217-345-3901, ext. 3. HOOPESTON, MARCH 27 — The workshop from 9 a.m. to noon at Fast Lanes Bowling Alley will include field sessions at a nearby cover crop demonstration plot. Topics will include crop rotation considerations, nitrogen retention, herbicide choices, cost share opportunities and soil pit investigations. The event is free. Refreshments will be served. To register by March
25, call 217-442-8511, ext. 3. EWING, MARCH 28 — Hosted by the University of Illinois Extension, the field day will begin at 10 a.m. at the Ewing Demonstration Center. Topics will include cover crop termination and soil organic matter increases. A panel discussion will explore cover crop successes and failures. Participants will tour the cover crop plots at the demonstration center. The free event will be held rain or shine. Lunch will be provided. For information or to register, contact Marc Lamczyk, U of I Extension Franklin County, at 618-439-3178. PALESTINE, MARCH 31 — The workshop will run from 10 a.m. to 2 p.m. in the Fife Opera House. Seating is limited to 150 people with registration due March 12. The registration fee is $10 and includes lunch. To register, contact Cazi Nelson with the Crawford County Soil and Water Conservation District at 618-5447517, ext. 3 or email go2thebarn@yahoo.com.
FROM THE COUNTIES
Page 13 Monday, March 3, 2014 FarmWeek
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UREAU — Farm Bureau will sponsor a lady landowner informational seminar at 10 a.m. March 14 at the Farm Bureau building. Timothy Harris, Capital Ag Property Services, and Gary Schnitkey, University of Illinois Extension, will speak. Call the Farm Bureau office at 8756468 for reservations by Friday. • Farm Bureau will host a farmers market planning meeting at 10 a.m. Tuesday at the Prouty Building in Princeton. OOK — Ag in the Classroom paid, summer internship based out of Countryside will be available from May to August. For more information visit {cookcfb.org} or email Diane Merrion at aitc@cookcfb.org. UPAGE — Farm Bureau will host an agricultural education expo March 12-13 at the DuPage County Fairgrounds for third and fourth grade students. • Foundation scholarships are available for graduating high school seniors who plan to pursue a degree in an agrelated field of study. Contact the Farm Bureau office at 6688161 for more information. DWARDS — Young Leaders will sponsor a clay shoot at 8 a.m. Saturday at the Edwards County Sportsman’s Club. Cost is $100 for a team of five. Call the Farm Bureau office at 445-2113 for more information. • Farm Bureau will co-host
a farmer’s share breakfast from 7 to 9 a.m. March 15 in the Farm Bureau community room. Cost is 15 cents. Call the Farm Bureau office at 4452113 for more information. FFINGHAM — Farm Bureau’s annual meeting will be at 6 p.m. March 10 at the Teutopolis Knights of Columbus building. Thunder Road, featuring Randy Kemme, will perform. Cost is $3. Call the Farm Bureau office at 342-2103 for reservations by Wednesday. • Farm Bureau will host an on-the-road seminar at 7 p.m. March 13 at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau, will speak on Federal Motor Carriers Safety Regulations. Call the Farm Bureau office at 342-2103 to register by March 13. ORD-IROQUOIS — Farm Bureau will sponsor a Viewpoint breakfast meeting at 7:30 a.m. Thursday at Happy Days Diner, Roberts. Call the Farm Bureau office at 265-4712 for more information. ANKAKEE — Farm Bureau’s annual meeting will be at 5:30 p.m. Monday at the Kankakee Elks Country Club, St. Anne. Rich Guebert Jr., IFB president, will speak. Cost is $15 for members and $30 for nonmembers. Call the Farm Bureau office at 9327471 to register. ASALLE — Farm Bureau will offer two scholarships. One will be
Top horse clinicians and educators join vendors at the 25th annual Illinois Horse Fair Friday through Sunday on the Illinois State Fairgrounds, Springfield. Illinois Farm Bureau, one of the event sponsors, will offer exhibit visitors a free informational DVD on towing horse trailers. The horse fair offers training and riding clinics taught by nationally and internationally known trainers, seminars and more than 140 vendors, located this year in the Exposition Hall. The event includes breed and sport demonstrations, stallion row and parade, horsesfor-sale aisles, youth judging
trials, a young riders area, and queen and princess contests. Horse fair hours will be 9 a.m. to 7 p.m. Friday and Saturday and 9 a.m. to 5 p.m. Sunday. Special evening shows will be offered Friday and Saturday nights. Daily admission costs $10 and weekend passes cost $25. General admission tickets offer access to all exhibits, clinics and educational presentations. Gates will open at 8 a.m. Wristbands may be purchased at the gate. The evening shows costs an additional $10 with a general admission ticket. Reserved evening seating costs $15. For more information, visit {HorsemensCouncil.org/ HorseFair}.
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Tuesday: • Bryce Anderson, DTN • Steve Shaffer, McCloy program participant: seeking applicants for 2014 McCloy Fellowship • Steve Meyer, Paragon Economics: livestock update Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Sen. Mike Hastings, D-Orland
Hills: Adopt-a-Legislator program Thursday: • Illinois Corn Growers Association representative • Gov. Pat Quinn: bid for reelection Friday: • Sara Wyant, Agri-Pulse • Mike Doherty, Illinois Farm Bureau To find a radio station near you that carries RFD Radio Network®, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”
awarded to a graduating high school senior planning to continue in an ag-related field of study. The second one will go to a current college student enrolled in an ag-related field of study. Applications are available at the Farm Bureau office or by visiting {lasallecfb.org}. Deadline to apply is March 21. ARION — Farm Bureau will co-host a wellness seminar from 7 to 9 a.m. Wednesday at the Farm Bureau office. Members will receive a discount on blood testing. Call the Farm Bureau office at 548-2100 to register. ERCER — Farm Bureau will sponsor a Women in Ag conference at 8 a.m. March 21 at Jumer’s Hotel and Casino, Rock Island. Ron Hanson, University of Nebraska, will speak. For more information visit {womeninagricultureconference.com} or call the Farm Bureau office at 5825116. • Farm Bureau will sponsor a marketing workshop from 9 a.m. to 3 p.m. March 22 at Jumer’s Hotel and Casino, Rock Island. Naomi Blohm, Stewart-Peterson, will speak.
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Cost is $40. Visit {mercercfb. org/news} to register by Friday. Call the Farm Bureau office at 582-5116 for more information. IATT — Young Leaders will host a National Ag Day breakfast from 7:45 to 9 a.m. Friday in the Farm Bureau basement. Call the Farm Bureau office at 7622128 for reservations by Thursday. ANGAMON — Farm Bureau will sponsor a spring market and weather outlook meeting at 6 p.m. Wednesday at the Farm Bureau office. Mike Zuzolo, market analyst; Mark Russo, meteorologist; and Kevin Semlow, IFB; will speak. Call the Farm Bureau office at 753-5200 for reservations. • Foundation scholarship applications are available at {sangamonfb.org}, by emailing farmbureau@sangamonfb.org or at the Farm Bureau office. Application deadline is March 15. NION — Farm Bureau will co-sponsor an on-the-road truck seminar at 8 a.m. Tuesday at the Farm Bureau office. Kevin Rund, IFB will speak. Call the Farm
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Bureau office at 833-2125 for more information. ERMILION — Farm Bureau will celebrate Illinois Farming Month by bagging groceries and discussing farming and food issues with consumers from 10 a.m. to noon Thursday at Danville and Tilton County Market stores. AYNE — Farm Bureau will host a concealed carry course from 9 a.m. to 6 p.m. Wednesday and Thursday at the Farm Bureau office. Cost is $70. Call the Farm Bureau office at 8423342 for reservations or more information by Tuesday. OODFORD — Farm Bureau will host a meet the sheriff candidates at 6:30 p.m. Thursday in the Farm Bureau auditorium. For more information call the Farm Bureau office at 4672347.
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“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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BUT CONTROL YOUR
FUTURE. Choose the soybeans that have a legacy all their own: FS HiSOY®. The first proprietary soybean brand, HiSOY has been a part of the land for nearly 50 years. Grow proud and pass it on. See your local FS member company or visit www.fshisoy.com
©2012 GROWMARK, Inc. S13269
PROFITABILITY
FarmWeek Page 14 Monday, March 3, 2014
Never too early to make 2014-15 market plan
We’re halfway through the 2013-14 marketing year and analysts are already busy looking at 2014-15 corn and soybean balance sheets and how they will be influenced by a different mix of planted acres from last year. Currently, Bryce Stremming corn acres are expected to decline to 93 million from 95.4 million last year and soybean acres are expected to increase
to 81 million from 76.5 million last year. Both the USDA Agricultural Outlook Forum and the Planting Intentions Report later this month will give us a more precise idea of corn and bean acreage this year. However, it is worthwhile to look at balance sheet possibilities for ideas regarding what 2014-15 may bring. Regarding the corn balance sheet, we assume 91.5 percent harvested acres for grain and a trend yield in the 160 bushel per acre range. Demand is holding level at 13.25 billion bushels with only minor adjustments in each demand
category. Totaling the corn balance produces ample ending stocks of 1.857 billion bushels when using a yield of 160 bushels per acre. Average farm corn price for 2013-14 as calculated by USDA is $4.50 with ending stocks of 1.481 billion bushels. For reference, in 2007-08 through 2009-10 when ending stocks ranged from 1.627 to 1.708 billion bushels, average farm corn prices ranged from $3.55 to $4.20. For the soybean balance sheet, we assume 99 percent of planted acres will be harvested and trend yield will be
near 43 bushels per acre with total demand held constant. If this balance sheet becomes reality, soybean ending stocks for 2014-15 are a comfortable 304 million bushels and would be the highest ending stocks since 2006-07. During the last five years when ending stocks ranged from 138 to 215 million bushels, average farm prices ranged from $9.56 to $14.40. For calendar year 2013, South and North America had good growing seasons, and at this point it appears 2014 will bring more of the same. This is in contrast to the prior two
years where either South or North America experienced production problems. With a building supply of corn and soybeans in both the U.S. and the rest of the world, it appears corn and soybean prices will have difficulty trading to levels seen the last three to five years. Now is the time to contact your FS grain marketing expert for grain marketing assistance.
Marketing assistance loans — Short-term financing is available by obtaining low interest commodity loans for eligible harvested production. A nine-month marketing assistance loan provides financing that allows producers to store production for later marketing. The crop may be stored on the farm or in the warehouse. Loans are available for farmers who share in the risk of producing the eligible commodity and maintain beneficial interest in the crop through the duration of the loan. Beneficial interest means
retaining the ability to make decisions about the commodity, responsibility for loss because of damage to the commodity and title to the commodity. Once beneficial interest in a commodity is lost, it is ineligible for a loan, even if a farmer regains beneficial interest. HEL and wetland compliance — Landowners and farmers are reminded they must comply with highly erodible land conservation (HELC) and wetland conservation (WC) provisions to receive benefits from USDA. Farmers with HEL-determined soils must apply tillage, crop residue and rotation
requirements as specified in their conservation plan or approved system. Farmers should notify the Farm Service Agency (FSA) before starting land clearing or drainage projects to ensure compliance. Landowners and farmers can complete form AD-1026 Highly Erodible Land Conservation and Wetland Conservation Certification to determine whether referral to the Natural Resources Conservation Service for a technical determination is necessary. For more information, contact a FSA county office. Beginning farmer loans — FSA may assist beginning farmers and/or members of socially disadvantaged groups to finance agricultural enterprises. Under designated farm loan programs, FSA can provide financing to eligible applicants through either direct or guaranteed loans.
FSA defines a beginning farmer as someone who has operated a farm for 10 years or less; will materially and substantially participate in the operation of the farm; agrees to participate in a loan assessment, borrower training and financial management program sponsored by FSA; and except for operating loan assistance, does not own farm acreage that is more than 30 percent of the county’s median size. Each member of an entity must meet the eligibility requirements. Loan approval also depends on acceptable feasibility and security determinations. More information is available at the local USDA Service Center. Microloans — FSA developed the microloan program to better serve the unique financial operating needs of beginning, niche and small family farm operations.
FSA offers a microloan designed to help farmers with credit needs of $35,000 or less. The loan features a streamlined application process. This program is useful to specialty crop growers and community supported agriculture (CSA) operators. Eligible applicants may apply for up to $35,000 to pay for initial startup expenses, such as hoop houses, essential tools, irrigation and annual expenses such as seed, fertilizer, utilities, land rents, marketing and distribution expenses. As financial needs increase, applicants may apply for a regular operating loan up to $300,000 or obtain financing from a commercial lender under FSA’s Guaranteed Loan Program. For information, schedule an appointment with a loan approval official at the local FSA office.
accept the corn containing corn rootworm control traits. The technology has been approved in the U.S., but not in China, the European Union, Egypt and Turkey. “We talked with Syngenta last week about the situation. They said they would be willing to work with growers to make sure that they have the right product for the grain channel they are selling into,” said Matt Hynes, GROWMARK seed sales and marketing manager. “We want to move ahead with the trait, but we want to be good stewards.” This is the first season Duracade corn is available for planting in the U.S. Hynes said GROWMARK will have enough product available for a limited launch of Agrisure Duracade to see how the new trait will perform. Most of the sales occurred in northeast
Iowa where rootworm control has become difficult, he added. According to a Reuters report, an estimated 300,000 to 700,000 acres of Duracade could be seeded this spring. Last year, corn growers harvested 95.4 million acres. National Corn Growers Association President Martin Barbre said the organization will provide information regarding the status of export approvals with key markets as they become available. Visit {ncga.com/for-farmers/know-before-you-grow} for updates. “As it is in the best interest of corn farmers and the value chain as a whole, NCGA strongly encourages all farmers to consult with their seed providers and their first purchasers when making planting decisions,” said Barbre, a Carmi farmer.
BY BRYCE STREMMING
Farm Service Agency News
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) $37.50-$82.31 $53.03 40 lbs. (cash) $97.00-$116.00 $110.24 Recipts
This Week 81,527 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 51,847
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $94.74 $88.20 $6.54 $70.11 $65.27 $4.84
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week $142.80 $142.54
Prev. week NA $142.00
Change NA $0.54
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 $171.03 $170.77 $0.26
Lamb prices Negotiated, wooled and shorn, 132-165 lbs. for 140-180 $/cwt. (wtd. ave. 157.65); 170-179 lbs. for 157-167 $/cwt. (wtd. ave. 162.50)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 2/20/2014 46.7 15.7 31.2 2/13/2014 54.5 11.3 33.2 Last year 27.8 21.2 11.7 Season total 1317.5 855.0 667.0 Previous season total 1105.5 668.0 348.2 USDA projected total 1495 1125 1450 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Bryce Stremming is MIDCO COMMODITIES’s senior commodity risk consultant. His email address is bstremming@midco.com.
Options offered to Duracade growers
BY CHRIS ANDERSON FarmWeek
Corn growers who purchased Syngenta’s new Agrisure Duracade corn seed have a couple of options in light of major exporters refusing to accept the corn. Growers with Duracade corn can work with their seed supplier to make sure they have a market available to channel the new trait. Growers can also access updates at {agrisureduracade.com}. Nebraska-based Gavilon Grain has an agreement with Syngenta to assist growers who will be planting seed with the Duracade trait to be good stewards of the grain market. The company has multiple facilities in Illinois. Grain exporters, including Archer Daniels Midland, Bunge and Cargill announced last week they would not
PROFITABILITY
Page 15 Monday, March 3, 2014 FarmWeek
CASH STRATEGIST
China soy pipeline full?
It’s no secret that Chinese soybean imports continue at an unusually aggressive pace. So far this world marketing year, their monthly imports have averaged 5.7 million metric tons (mmt). That pace of imports is 31 percent higher than the same period last year, and 14 percent higher than the average pace over the whole marketing year for the last two years. For the calendar year 2013, Chinese soybean imports were 8 percent higher than they were the previous two years. At the same time, their feed output declined 4 percent. In essence, their imports were up, but the consumption of soybean meal from these imports was down. The implication indicates they were stockpiling soybeans. That was especially true in the second half of the marketing year. The heavy import pace during that period was anticipated. They needed to rebuild pipeline inventories as well as build inventories to bridge the period until South American supplies became available. The aggressive pace has continued into the first two months of 2014. About 5.9 mmt were
imported in January. February imports are expected to total 5 mmt, down from the recent levels, but unusually heavy for this time of year. And our February exports would suggest imports will be that large in March. Given that this is a period in which there is a lull in imports, it would suggest pipeline inventories should be getting a little heavy. At the same time, we are hearing crush margins have turned negative over the last month. And just this last week, it was reported Chinese pork prices have dropped so far that producers are starting to liquidate breeding herds. Both, but especially the latter, imply that consumption should drop somewhat in the months ahead. At the same time, exports from South America are starting to accelerate. If their buyers start to slow the pace of imports, the impact will be noticed in the cash premiums for soybeans at Brazilian ports. If rising arrivals are confronted by slowing shipments, basis levels at port will decline. That, in turn, will widen the differential between their soybean prices and ours, becoming a drag on our markets. It is already economically viable to import soybean meal from South America. It could become viable to import whole soybeans.
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Corn Strategy
ü2013 crop: With the early focus on soybeans, the attention has now turned to the corn export program. Weekly sales were strong at 33.1 million bushels. Make catch-up sales at prices above $4.60 in the May contract. Continue to check the Hotline for updates on new sale recommendations. ü2014 crop: December corn futures have been bound in the $4.60 to $4.70 range for two weeks. Many view the recent USDA Ag Outlook production numbers as over-bearish. The $4.75 to $5 range remains our target for new-crop sales. vFundamentals: The political unrest in Ukraine has not presented as much of an obstacle to grain exporters as expected; however, the country’s tight financial situation could bring down planted acres by as much as 20 percent. Weather will be a concern for the South American second crop and could support the corn board in the near term. This month’s report posted higher than expected gains for cattle on feed, but the porcine epidemic diarrhea virus continues to hurt demand from hogs.
Cents per bu.
Soybean Strategy
ü2013 crop: Last Thursday’s surge and collapse had all the makings of a “blow-off ” top. That and the absence of supportive fundamentals only reinforce the need to price any oldcrop soybeans you may still own. ü2014 crop: November futures moved very close to major resistance, $12, and promptly retreated. Use these unexpected gains to price another 10 percent now, taking sales to 40 percent. vFundamentals: Emotions in the soybean complex ran high last week with the market outdoing the news that was surfacing daily. The export sales news was slightly positive at best; certainly not anything near good enough to trigger a 50-cent explosion. The action suggests buying came from the last stubborn shorts getting out, typically the last to exit. And true to form, once their buying was over, there was no one else willing to buy soybeans, allowing prices to quickly retreat. No matter what
you hear, the South American crop is still large.
Wheat Strategy
ü2013 crop: Wheat futures traded in a wide range last week, starting higher and then trending lower midweek, only to post sharp gains early Friday. Now that bushels are priced basis the May futures contract, be mindful of resistance at $6.20. ü2014 crop: Weather concerns have largely subsided abroad, but the potential for a third polar vortex threatens the North American winter wheat crop. The U.S. should have no
shortage of export competition for its 2014-15 crop. The newcrop sales target remains $6.50. vFundamentals: Egypt canceled a small purchase of soft red wheat from the U.S. and pressured the complex early in the week. The top importer continues to be a buyer of Black Sea wheat. Russian surpluses have been made attractive by the ruble’s hard tumble in 2014. Some in the trade worry that the pace of shipments lags behind what is needed to reach the USDA export estimate of 1.175 billion bushels.
PERSPECTIVES
FarmWeek Page 16 Monday, March 3, 2014
Ag working to reduce the burrito bashing
Ag teachers confirm value of ExplorACES
Richard Clark, second from left, associate director of the University of Illinois agricultural education program in the College of Agricultural, Consumer and Environmental Sciences (ACES) chats with students. (Photo courtesy of U of I ACES)
“I have been bringing students to ExplorACES for almost a decade,” says Jennifer Wherley, agricultural education teacher at Mahomet-Seymour High School. ExplorACES, a two-day studentKENDALL HERREN run event at guest columnist the University of Illinois, familiarizes prospective and admitted students with faculty, academic opportunities and numerous student organizations in the College of Agricultural, Consumer and Environmental Sciences (ACES). More than 125 exhibits and mini-classes showcase academics, research and student development. Students learn about study abroad programs, what they can do with ACES degrees and how to apply for nearly $2 million in scholarships. “I really like taking my students,” says Monticello High School agricultural educator Bryce Hoffman, who, like Wherley, is an ACES graduate. “ExplorACES is an eyeopener, a great opportunity for them to see the college from the perspective of students experiencing ACES right now,” Hoffman notes. Among the more popular
activities every year are sampling foods produced in other countries, feeling inside of a fistulated cow and watching as horticulture students arrange flowers to music. Wherley and Hoffman see value in ExplorACES for their FFA chapters, including scholarships for section and state officers and outreach to high school seniors about ACES opportunities. “Through ExplorACES, FFA members can discover ways to grow personally and gain leadership skills through agricultural careers and industry opportuni-
With the launch of two videos of Chipotle’s four-part online series “Farmed and Dangerous,” consumers increasingly find the series to be “food for thought.” The series has prompted varied discussions, ranging from conversations about the series itself and the issues raised, to how it is being used as a unique marketing tool and its perception by some as a self-serving commercial without truly addressing the difficult challenges faced by today’s food system. It has also been encouraging to see so many from food and agriculture engaging in the conversation about how food is produced through Twitter, blogs and
elsewhere. Based on the consumer conversations we’re seeing (and those we’re not), we recommend engaging opportunistically, rather than drawing additional attention to the series through proactive outreach. If you do find an opportunity to engage in a conversation about the series in the future, you might find three documents useful at {cfiengage.com}. In addition, we posted a blog at {foodintegrity.org/blog/post/chipotle-at-it-again} noting that while the “natural inclination might be to hold Chipotle accountable for their outrageous attacks,” a strategy that will help build consumer trust is to engage those who are taking part in the
ExplorACES details The University of Illinois College of Agricultural, Consumer and Environmental Sciences (ACES) invites prospective students and their families and teachers to ExplorACES March 14-15 on the Urbana campus. Hours will be 9 a.m. to 3 p.m. March 14 and 10 a.m. to 2 p.m. March 15. Free parking will be available March 14 in Lot E-14, just west of the State Farm Center, formerly the Assembly Hall. Free shuttle buses will transport between that lot and the ExplorACES event. On Saturday, visitors may park anywhere on campus. Visit {exploraces.org} for more details.
ties,” Wherley says. “My students learn real world applications to the agricultural industry while sampling topics that they may not have been exposed to.” One such experience, and Wherley’s favorite memory, was a trip to the campus meat science lab. “A couple of years ago all 22 of my students spent three hours at the lab learning about processing and techniques new to the industry,” Wherley remembers. “Mr. Stites, who manages the lab, always takes time to answer students’ questions and to apply their concerns to the real world.” For Hoffman, the excitement his students display when they talk about what they have learned provides the most vivid memory of ExplorACES. “I take my students because it has an impact on them,” Hoffman says. “The whole point of my job is to help students figure out what they want to do, and ExplorACES gives them that opportunity. It helps inspire some of them.”
Kendall Herren of Sheriden is a sophomore studying agricultural communications at the University of Illinois and serves as publicity co-director for ExplorACES.
Build consumer trust with Chipotle responses
conversation to introduce them to real farmers. Doing so helps showcase that the values of today’s farmers “align with the values of the vast majority of Americans and are nothing like the villains portrayed in the Chipotle series.” Please join us in promoting a more informed conversation about how food is produced.
The Center for Food Integrity was established in 2007 to build consumer trust and confidence in today’s food system. Illinois Farm Bureau is a member of the nonprofit organization representing farmers, universities, food processors, restaurants, retailers and food companies.
Chipotle’s recent announcement that it has filmed a satirical video series, which according to the New York Times is a “full throated attack on the agriculture industry,” is disappointing to say the least. This comes on the heels of the restaurant chain’s “Scarecrow” marketing campaign that attacks agriculture as big business. This is confusing given they are a large corporation in the food industry. Chipotle’s continued onslaught against agriculture has brought farming organizations’ relationships with these companies into new light. One RYAN of my roles at TRACY Illinois Farm Bureau involves outreach to food companies to build lasting, working relationships with them. Some of this is easier said than done and takes time to develop. During the last three years, I have worked to build strong relationships within the food industry. I have met with many companies whose names you would know, such as ADM, General Mills, Kraft, Marriott, McDonald’s, Monsanto, Quaker Oats, and others you likely don’t know. I have found, for the most part, a willingness to engage, share ideas and work together. Sometimes we don’t agree on issues, but the ability to have an open conversation on these topics is something most of the companies welcome. For example, in early 2012, McDonald’s, along with numerous other food chains, announced its intentions to phase out use of gestation stalls with the pork it procures. In the company’s opinion, use of sow stalls was not in the best interest of animal welfare. While I do not share the opinion of McDonald’s as it relates to sow stalls, I do respect how the company handled itself after the announcement. When McDonald’s made the announcement, I reached out to my contact there to discuss the decision. Company representatives agreed to co-host a meeting with us on agriculture and other topics. We invited 11 other state Farm Bureau presidents and/or staff to participate in the meeting at McDonald’s Hamburger University. While it was clear the company wasn’t going to reverse course on its gestation stall announcement, the meeting built a new sense of trust on both sides. I continue to work on our relationship with them and have had some very productive meetings.
McDonald’s seem to have a genuine desire to include agriculture’s opinions on issues it faces. On the other hand, you have Chipotle. The company has billed itself “food with integrity” as it continues to bash the U.S. food system and the farmers who raise the food it serves, from which it turns a mighty profit. The company claims it’s just trying to start a conversation with the public on important issues, at the same time ignoring it is being misleading at best. Repeated attempts to reach out to Chipotle have been ignored. Not just my attempts, but others within the production side of agriculture having offered farm tours and meetings. This makes it increasingly difficult for our side if the other side has no interest in working together. It appears Chipotle doesn’t want to hear the truth about agriculture. Rather, it chooses to market itself as “food with integrity,” while falling far short of the definition. While this is very frustrating, it isn’t totally unexpected. In most instances, companies like Chipotle are well equipped with the facts. However, facts don’t always sell burritos. While we cannot control their marketing or their message, we can make sure they have the right information. Organizations like Animal Ag Alliance, Center for Food Integrity, U.S. Farmers and Ranchers Alliance and Truth About Trade & Technology all work to present facts on agriculture, countering Chipotle’s negativity campaign. IFB is a member of all four of these organizations and has remained in close contact with them as they develop various strategies to engage consumers over social media and through other outlets. Organizations like these work with universities, outside experts and the industry to present the entire picture of agriculture, not to produce satirical comedies. I intend to continue reaching out and working with companies that work in and around the food chain. At this point, it would be naïve to believe that Chipotle will listen to documented facts from agriculture advocates and change its current marketing strategy. It appears that for them to change, consumers will have to stop buying their food. I guess I’ll just continue to make my burritos at home to ensure my food has real integrity. Ryan Tracy serves as Illinois Farm Bureau director of external relations for the Governmental Affairs & Commodities Division.