FarmWeek march 5 2012

ST. JOSEPH CHURCH in Ridgway was among the casualties of a tornado last week that killed six and injured several others. .......2

EaRly vOTing STaRTEd last week and will continue through March 15, according to the Illinois State Board of Elections. ..............2

THE OBama administration has released 58 new actions that it hopes will protect the Great Lakes from the invasive Asian carp. .........11

Monday, March 5, 2012

Two sections Volume 40, No. 10

FB members hear latest on pesticide permits

BY KAY SHIPMAN FarmWeek

Illinois Environmental Protection Agency (IEPA) specialists last week at the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield discussed the pesticide applications that would require a new National Pollutant Discharge Elimination System (NPDES) permit.

“IFB and the American Farm Bureau Federation will continue to oppose the (new) permit, but this is where we are now,” Nancy Erickson, IFB

FarmWeekNow.com To v i e w t h e l a t e s t n e w s o n NPDES pesticide permits, go to FarmWeekNow.com.

Periodicals: Time Valued

director of natural and environmental resources, told farmers at the conference.

“We feel it is important for you to understand what the IEPA is saying and whether you need a permit to apply pesticides.”

New regulations that took effect Oct. 31 will impact a variety of pesticide applications “to or over water or at water’s edge.” The necessity for a permit is a result of a

Sixth Circuit Court of Appeals decision that some applicators need a permit under the Clean Water Act. Darin LeCrone of IEPA’s water bureau advised farmers that any “terrestrial application” would not require a permit. “That includes drainage swales and grass waterways in a field — if there is no water involved and it (pesticide residue) will not reach waters of the U.S.” Leslie Lowery, also with IEPA’s water bureau, added the applicator also must follow restrictions on the product label.

A few permit exemptions are included in the new rules.

A permit would not be needed if pesticide ran off from a field in stormwater or was the result of off-target spray drift, LeCrone said.

LeCrone and Lowery admitted permit questions will

ONE STRANGE WEEK

The week containing Leap Day certainly was a strange one. On Tuesday, Zack Harvey of Mason City, who works for Reggie Dowell of Greenview, was working ground on a 40-acre field near Greenview in Menard County, obviously something that doesn’t happen often in late February. And then, of course, there was the fatal tornado in Southern Illinois’ Harrisburg, another weather anomaly for February (see story on page 2). (Photo by Ken Kashian)

See Pesticide, page 3

Phasing out gestation stalls may not be good for all pigs

BY DANIEL GRANT FarmWeek

A recent food industry trend of phasing out sow gestation stalls to improve animal welfare in some cases could have the opposite effect.

Janeen Salak-Johnson, an animal scientist at the University of Illinois, told FarmWeek that university studies have shown some sows moved from stalls into group housing systems are more prone to injuries and stress.

“There are sows in group housing systems we’ve studied, and their well-being has not improved,” Salak-Johnson said.

Philip Nelson, president of the Illinois Farm Bureau and a lifelong pork producer from LaSalle County, said eliminating gestation stalls won’t guarantee better animal welfare.

“Everybody wants to get rid of gestation stalls, but we also need to recognize group housing, under its present form,

doesn’t really work on a large scale,” Nelson said. “Clearly there are more downer sows and sows are more aggressive in a group environment.

“That’s my concern,” he continued. “I think we need more research into this.”

Smithfield Farms and Cargill in recent years started phasing out the use of gestation stalls in pork production systems.

Smithfield announced in 2007 it planned to eliminate all gestation stalls from its operations by 2017.

But, at least in the case of Smithfield, the world’s largest pork producer, the proposal hasn’t been easy to achieve.

Smithfield as of last year had 30 percent of sows in group housing systems.

The issue heated up again late last month when McDonald’s, which buys about 1 percent of all pork produced in the U.S., announced it plans to phase out its pork purchases

FarmWeek on the web: FarmWeekNow.com

from producers who use gestation stalls.

“What data does McDonald’s have to show gestation stalls are not sustainable?”

Salak-Johnson questioned.

“The reality is McDonald’s made a business decision” that was backed by the Humane Society of the United States.

Salak-Johnson contacted McDonald’s in an attempt to arrange a meeting to discuss the pros and cons of various housing systems and animal welfare but, as of last week, had not heard back from the Oak Brook-based fast-food giant.

IFB also is in the process of arranging meetings with food industry representatives, Nelson noted.

“We need a direct linkage with restaurants and distributors so they really understand what we (farmers) do to raise animals to get that food to their restaurants,” he said.

Nelson and Salak-Johnson

are concerned the trend of phasing out certain production methods could limit farmers’ options to care for their pigs and it could produce unintended consequences such as more injuries or lame sows.

“Farmers need to look at each system based on sows’ needs and wants,” the animal scientist noted. “Producers should have a choice (of housing systems) because what works on one person’s farm won’t necessarily work on someone else’s farm.”

Salak-Johnson said she believes researchers can improve animal welfare of all housing systems. She is among researchers in Illinois who are studying animal welfare and various systems, including freeaccess and turn-around stalls.

“I think we can design a better gestation stall,” she said.

“But I don’t think it should be eliminated” as an option for farmers.

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

FarmWeek Page 2 Monday, February 27, 2012

around illinois

Quick Takes GALESBURG HEARING PLANNED — U.S. House Ag Chairman Frank Lucas (R-Okla.) has announced a series of 2012 farm bill field hearings across the country in March and April, with a hearing set for March 23 in Galesburg.

Ag Committee member Rep. Bobby Schilling, a Colona Republican, plans to participate in the 9 a.m. hearing, which will offer Illinois farmers an opportunity to voice their priorities for the next farm bill.

The hearing will be at Carl Sandburg College, Student Center Building B, 2400 Tom L. Wilson Boulevard.

FERAL HOGS ON IDNR’S MOST WANTED LIST — Marc Miller, director of the Illinois Department of Natural Resources (IDNR), wants farmers to watch for and shoot feral hogs — wild hogs that have been confirmed in 17 counties.

“You don’t have to have a hunting license to shoot them on sight,” Miller told Farm Bureau members at the Governmental Affairs Leadership Conference last week.

Miller noted feral hogs are known to carry diseases that may infect livestock, wildlife, and pets.

“We (IDNR) don’t have the funding to go out and address this (invasive species), and we don’t want to create an industry around hunting them,” Miller said. “Let’s work together on this issue.”

A side benefit is the feral pork can be tasty, he added.

FUELING POLICY — Renewable Energy Group (REG), which operates two Illinois biodiesel plants, has announced a new policy advocacy website designed to “centralize” the company’s constituents and rally support for biodiesel policy issues.

Registration and information is available at {http://advocacy.regi.com/}. The new site design allows biofuels supporters to sign up for informational updates and alerts and offers what REG termed an “easyto-use platform” to contact state or federal elected officials.

“The biodiesel industry is facing important issues like the expansion of the (federal Renewable Fuels Standard) and the reinstatement of the federal (biodiesel) blenders’ tax incentive in order to grow green collar job creation, create a healthy environment, and expand energy security,” REG Director of Corporate Affairs Scott Hedderich noted.

REG also owns plants in Minnesota and Texas and plans added operations in Louisiana, New Mexico, and Kansas.

Damage to the Saline County Farm Bureau building from a killer tornado that struck on Leap Day last week was extensive, although insurance adjusters believe the building is structurally sound and can be repaired. The pile of debris off to the left of the building is what remained of the destroyed Southern FS facility. (Photo by Jody Hughes, Saline County Farm Bureau manager)

Leap Day tornado deadly but not unique

BY DAVE MCCLELLAND FarmWeek

Leap Day 2012 is one that will long be remembered in Illinois for the tragedy it brought to Harrisburg in Southern Illinois.

Six people were killed and several others injured when an EF-4 tornado ripped through the town of 9,000 people, causing millions of dollars of damage.

An EF-4 tornado is the second most destructive type and produces wind gusts of 168 to 199 mph.

The county Farm Bureau office in Harrisburg and the Gallatin County Farm Bureau building in Ridgway both were damaged extensively. The Southern FS facility next to the Saline County FB office was destroyed.

Because of damage to its office in Harrisburg, the Saline County Farm Service Agency temporarily relocated to the Gallatin-Hardin County Service Center in Ridgway.

Country Financial had received 250 claims by Friday,

Vol. 40 No. 9

February 27, 2012

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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. © 2012 Illinois Agricultural Association

STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@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

Dennis Vercler 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

now doubled with last Wednesday’s event.

“EF-4 tornadoes are relatively rare in Illinois,” said Angel. Of the tornadoes reported in Illinois between 1950 and 2011, only 40 were in that category.

“However, they are very deadly,” said Angel. “Of the 203 tornado-related deaths during that same period, 100 came from EF-4 events.”

Before the event in Harrisburg, the only other EF-4 tornado to strike Illinois in February was on Feb. 25, 1956, when one swept into St. Clair County, causing six deaths in Illinois and Missouri.

The Harrisburg tornado was the worst to hit Illinois since 2004 when an EF-3 tornado killed eight people at Utica in LaSalle County.

Southern Illinois, however, did experience the worst tornado disaster in U.S. history.

On March 18, 1925, a tornado moved through Missouri, Southern Illinois, and southern Indiana, leaving 695 people dead.

Illinois voters may use absentee or early voting

BY KAY SHIPMAN FarmWeek

(ISSN0197-6680)

mostly to homes and business buildings, said spokesman Chris Anderson.

Illinois Gov. Pat Quinn declared the southern third of Illinois a disaster area, which ensures that state resources and personnel will assist with recovery efforts.

The governor also requested the Federal Emergency Management Agency (FEMA) to assist with damage assessments in Gallatin, Massac, Perry, Pulaski, Randolph, Saline, Union, and Williamson counties.

FEMA will begin its assessment of damage to homes and businesses today (Monday).

The assessments are necessary to support a request for federal assistance.

While a February tornado is unusual, it is not unprecedented.

Of 2,320 tornadoes reported in Illinois between 1950 and 2011, 39 of them occurred in February, said Jim Angel, Illinois state climatologist.

Those tornadoes had caused six deaths, a number

Registered voters don’t have to wait until March 20 to vote in the Illinois primary election.

Many registered voters who are not able to vote in person on election day choose to vote by absentee ballot or participate in early voting.

Early voting started last week and will continue through March 15, according to the Illinois State Board of Elections.

Interested voters should check with their local election authorities for polling places and early voting hours at each location.

Voters who participate in early voting must show valid identification with a photo,

such as a current driver’s license. Of course, a person who votes during the early voting period legally is prohibited from voting again on election day.

Votes cast during early voting will not be counted until after the polls close on March 20.

Using an absentee ballot is another way to vote.

Individuals who may vote by absentee ballot include those in the military and their spouses and children ages 18 or older and voters who are going to be temporarily out of the country.

To receive an absentee ballot, a voter may obtain an application either by mail or in person from the election

authority for the jurisdiction in which the voter is registered.

Absentee voting begins 40 days before the election. For those applying by mail, March 15 will be the last day to request an absentee ballot for the March 20 primary. Those planning to vote by absentee ballot may vote in person up to and including the day before the election.

Absentee voting by mail must be completed using the certified envelope and other forms provided.

General information about registering to vote and different types of voting is available from your local election authority or from the State Board of Elections online at {www.elections.il.gov}.

FarmWeek Page 3 Monday, March 5, 2012

state

Kennedy: Research universities ‘perpetual job-creating machines’

BY KAY SHIPMAN FarmWeek

Bob Flider, left, acting state agriculture director, listens to Hancock County Farm Bureau leader Sam Zumwalt, right, as Illinois Farm Bureau Vice President Rich Guebert Jr. looks on. Flider listened to farmers’ concerns after he spoke at the IFB Governmental Affairs Leadership Conference in Springfield last week. (Photo by Kay Shipman)

Agency directors seek to work with farmers IDOA, IDNR facing cuts Tough state fiscal conditions and proposed budget cuts mean the state departments of agriculture and natural resources are reaching out to farmers and landowners.

“We want to work with you and acknowledge it’s the family farms and folks on the land who are the best stewards. I know stewardship is strongly ingrained,” Marc Miller, direc-

‘We want to work w i t h yo u a n d a c knowledge it’s the family far ms and folk s on the land who are the best stewards.’

— Marc Miller Illinois Department of Natural Resources director

tor of the Illinois Department of Natural Resources (IDNR), told Farm Bureau leaders last week.

Miller and acting Illinois Director of Agriculture Bob Flider spoke on a state agency panel during the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield.

Both Miller and Flider acknowledged their respective agencies face state budget cuts and employee losses.

“During these challenging economic times, we need to find ways to be more effec-

tive,” Flider said. “Agriculture has been, and will continue to be, the backbone of the Illinois economy ... Ag needs to be part of the solution for Illinois’ economy.”

Flider noted Gov. Pat Quinn’s goal to increase exports and mentioned the governor’s appointment of an export advisory panel, which includes IFB Vice President Rich Guebert Jr. “When you have money coming into Illinois from outside of the state and the country, that is an economic boost,” Flider said.

Miller reached out to Farm Bureau members to help him “protect the rights to hunt and fish and to protect our heritage and traditions.”

Given that 96 percent of land in Illinois is privately owned, he also emphasized the need to work with landowners “to help you protect what is yours” and to find ways to provide outdoor recreational opportunities.

In response to audience questions, Miller acknowledged the state’s dam and levee infrastructure needs to be addressed and that we have “levees that have outlived their usefulness.”

“At DNR, we are looking at ways to improve and enhance flood protection,” he said.

As for the announced closing of the animal disease lab in Centralia, “these were tough decisions to make,” Flider said, adding the department analyzed the situation to ensure that services could be provided at the lab in Galesburg. — Kay Shipman

Christopher Kennedy, chairman of the University of Illinois Board of Trustees, last week during the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield made a strong case for Illinois to support its research universities and reap the economic benefits.

Kennedy, the son of Robert and Ethel Kennedy, noted his hometown of Boston was able to rebuild economically several times due to new industries that sprang from its famous research universities, which include Harvard and the Massachusetts Institute of Technology (MIT). MIT alumni alone have founded 25,000 companies, he added.

“You must care about our research universities and how they impact the state,” Kennedy told Farm Bureau members.

He called research institutions “perpetual job-creating machines” because discoveries create new knowledge, which leads to new products, which foster new businesses and jobs, which cause economic growth that supports increased funding for education.

Again, using Boston as his poster child, Kennedy described how university presidents in that city “stayed close” to their powerful political leaders, who in turn, brought federal funding back to the universities.

“Most business leaders in

Illinois Farm Bureau President Philip Nelson, left, chats with Christopher Kennedy, chairman of the University of Illinois Board of Trustees, before Kennedy spoke at the IFB Governmental Affairs and Leadership Conference in Springfield last week. (Photo by Kay Shipman)

Illinois couldn’t name the university presidents, and even if they could name them, they probably have not gotten an open invitation” to visit the campuses, Kennedy said.

He then read a laundry list of political leaders, starting with President Obama, with ties to Illinois.

The former long-time president of Chicago’s Merchandise Mart, Kennedy said, “I know what it takes to get companies to move here and grow.”

Illinois’ economic future will not fare well if current economic trends continue and the state maintains the status quo, according to Kennedy.

Business consolidation, even among large corporations, continues worldwide, and economic activity is consolidating in so-called “mega cities.” But economists predict Illinois

soon will not have a single city among the nation’s 50 wealthiest cities, Kennedy noted.

“Companies will allocate their wealth to other competitive cities” outside Illinois, he said. “Increased economic development is critical.”

The state’s economy is weaker than ever before with the nation’s fourth highest tax burden per capita, he said. Job growth has been slower than it was after previous recessions.

Kennedy was critical of the Quinn administration’s proposal to have universities cover a greater portion of their employees’ pension fund.

“That’s taking a budget problem and creating an economic problem,” he told FarmWeek after his speech.

“We’re opposed to anything that hurts the future of the state.”

IEPA offers answers to NPDES permit questions At the Illinois Farm Bureau Governmental Affairs Leadership Conference last week, the Illinois Environmental Protection Agency (IEPA) provided the following answers to questions about new rules for the National Pollutant Discharge Elimination System (NPDES) pesticide permit: Question: If I apply an aquatic-use pesticide to water, do I need a permit?

IEPA: Yes, all pesticide applications to or over waters of the U.S. need to be covered by an NPDES permit.

If I apply a pesticide labeled for use in water to a roadside ditch, do I have to have a permit?

IEPA: Yes, if the ditch is a water of the U.S. or is a tributary to waters of the U.S. and the pesticide or its residual will enter waters of the U.S.

Do I need a permit if I apply a pesticide to a pond, regardless of whether the water from the pond is connected to another water?

IEPA: Yes, if the pond has an overflow structure that would discharge to waters of the U.S. and you apply pesticides to the pond.

No, if the pond has no overflow outlet that discharges water.

tors have a permit if one is needed.

Asked about the need for permit to apply algaecide to a farm pond, LeCrone said that would depend on the pond and the possibility that it might overflow, causing the discharge waters and pesticide to “enter waters of the U.S.” In that scenario, a permit would be needed, according to LeCrone. A permit would not be needed if there was no

overflow outlet to allow a discharge of water, he added.

IEPA does not know how many new NPDES pesticide permits it may issue this year.

LeCrone speculated the number may range between 5,000 and 10,000.

For more information, go online to {www.epa.state.il.us/ water/permits/pesticide/index.ht ml} or call IEPA’s water pollution control division at 217-7820610.

Pesticide Continued from page 1 remain regarding some pesticide applications, primarily those “at water’s edge.”

“It’s kind of up to you guys to decide if you will need a permit,” LeCrone said.

For applications that require a permit, either the applicator or the person who makes the decision on pesticide application must have a permit, according to LeCrone. Erickson urged farmers to be sure their custom applica-

FarmWeek Page 4 Monday, March 5, 2012

energy

Vilsack: Ethanol industry must market itself better

BY MARTIN ROSS FarmWeek

Renewable Fuels Association CEO Bob Dinneen calls ethanol “one of the greatest success stories we never hear about.” Ag Secretary Tom Vilsack urges the ethanol industry to do a better job getting the word out.

According to Dinneen, the industry has been the fastest growing sector in the nation.

The value of industry output has grown by an average annual 7.9 percent since 1998, while the U.S. economy has grown by an average 2.2 percent.

Ethanol’s growth rate has surpassed that of either Internet publishing/broad-

casting or petroleum refining and oil and gas extraction, Dinneen said. U.S. ethanol production now includes 209 plants in 24 states, and the industry produced a record 13.9 billion gallons in 2011.

Despite reduced federal support for ethanol, Dinneen sees continued growth, citing “sustained” $80- to $100-perbarrel oil, technologies that may unlock the potential of cellulosic ethanol, anticipated sales of 15 percent ethanol

blends, and ethanol “marketing opportunities opening all over the globe.”

“Certainly, the marketplace isn’t great right now — nobody’s making a lot of money — but that’s a cyclical thing,” he told FarmWeek.

“Most (ethanol) producers understand that they may not be making much money today but that next quarter, the quarter after that, they will be.”

At February’s National

Ethanol Conference, Vilsack stressed the need to reach a goal of 36 billion gallons of U.S. biofuels use by 2022.

“E15’s important,” he argued, urging ethanol/fuel suppliers to “register as soon as you can” to market the blend now that the U.S. Environmental Protection Agency has approved E15 health data.

Vilsack hailed the national security, job, ag income, and trade benefits of biofuels (“You helped us reach a record amount of ag exports last year,” he told ethanol producers). But he admonished biofuels advocates to “better market the benefits of this industry.”

Vilsack acknowledged a “very concerted, very organized effort to undermine people’s confidence in this industry.” He challenged “food vs. fuel” charges leveled at corn ethanol, noting 84 percent of food costs go to “people who package, process, refrigerate, store, transport food — all those people who use oil.”

“It’s not us,” he said. “It’s important to push back on all those myths, but it’s also important to have a positive message about this industry.

“It’s important to inform consumers they have choice at the pump and that they’re paying less at the pump because of this industry.”

Vilsack says new fuel standard vital to ethanol’s future Federal incentives for nextgeneration ethanol development hinge on congressional budget priorities. The success of new ethanol blends hinges in part on defeating opposition from biofuels critics.

But the ethanol industry’s future itself hinges on the nation’s biofuels commitment under the federal Renewable Fuel Standard (RFS2), according

biodiesel and other renewable diesel fuels beyond existing corn-based ethanol.

The ethanol sector is counting on the RFS2 to provide demand stability amid uncertain energy prices and elimination of the federal ethanol tax credit. Biodiesel interests continue to push both retroactive extension of the expired biodiesel credit and higher

oil imports from unstable or hostile regions.

“Make no mistake: Just because (the RFS2) is in the law doesn’t mean it will always be in the law,” he warned.

“Because of the extraordinary work that you’ve done over the last several decades to grow and expand this industry, you’ve gotten the attention of the oil industry, no question.

‘Just because (the RFS2) is in the law doesn’t mean it will always be in the law.’

— Tom Vilsack U.S. ag secretary

to Ag Secretary Tom Vilsack.

The standard mandates 36 billion gallons of annual biofuels use by 2020. The U.S. Environmental Protection Agency has set a 15.2billion-gallon renewable fuels target for 2012, including 8.65 million gallons of cellulosic ethanol and 1 billion gallons of

RFS2 volumes in 2013.

Midwest interests have lobbied for inclusion of sorghumbased ethanol in RFS2 requirements. RFS2-driven demand is expected to fuel development of cellulosic ethanol.

Vilsack argues the RFS2 and its long-term goals are “important to the security of this country,” in terms of reducing

U.S. Rep. Jesse Jackson Jr., a Chicago Democrat, left, meets with Illinois Farm Bureau board members Chris Hausman, center, and Randy Poskin during an IFB visit to Capitol Hill. Jackson was supportive of federal issuance of biodiesel use requirements for 2013. (Photo by Chris Magnuson)

“Now, there are very interesting and subtle ways folks are beginning to talk about the Renewable Fuels Standard: Do we need it? Should it be changed? Should it be expanded?”

A cellulosic ethanol tax credit remains in force through Dec. 31, USDA has created five “virtual research centers” to help identify new feedstock opportunities and improve production, and 2008 farm bill programs have enabled USDA to grant hundreds of millions in loan guarantees for biorefineries.

In addition, Vilsack said USDA has identified 50,000 acres across nine project areas where non-food crops can be raised “to supplement cornbased ethanol.” But the 2012 farm bill faces major spending cuts possibly targeting energy programs.

Vilsack noted inclusion of biofuels in President Obama’s newly unveiled “all-of-theabove” energy strategy. In a speech detailing the plan, Obama noted use of “clean,

renewable energy” has nearly doubled over the last 16 years, “and thousands of Americans have jobs because of it.”

However, Vilsack was uncertain whether the White House’s energy push will translate to congressional energy funding, given Washington’s current political environment. While he finds House and Senate ag committees “relatively biparti-

san,” he sees deep divisions on the Hill.

“I don’t know what (House Ag Chairman) Frank Lucas and (Senate Ag Chairman) Debbie Stabenow can do — whether they can sprinkle fairy dust across the Capitol to make whatever they did occur across Congress,” Vilsack told FarmWeek. — Martin Ross

Senate proposal seeks more power from biomass A new Senate renewable power proposal has garnered support from ethanol as well as biomass energy interests.

Last week, U.S. Senate Energy and Natural Resources Committee chairman Jeff Bingaman (D-N.M.) unveiled a proposed Clean Energy Standard (CES) requiring that a percentage of U.S. electricity come from renewable sources such as biomass.

Novozymes, a key producer of enzymes that convert energy crops and crop residues into biofuel, was among those hailing Bingaman’s bill. Novozymes North America President Adam Monroe said the proposal is crucial to biorefinery development as “the Senate debates the energy titles in the farm bill and the tax policies we need to help get steel in the ground.”

Global production capacity of ethanol from cellulosic sources is projected to reach about 250 million gallons in 2014.

A study by Bloomberg New Energy Finance indicates the U.S. could produce more than 18 billion gallons of ethanol annually using less than 20 percent of available ag residues.

That would create 1.4 million jobs and reduce CO2 emissions from gasoline-based transportation by 11 percent. Those numbers would be even higher if biomass from forestry residues, household waste, and energy crops were included.

Beyond building demand for farm residues and energy crops, industry sources at the recent National Ethanol Conference suggested biomass power generation — either to fuel processing or as a marketable ethanol “co-product” — would improve profit margins for biofuels plants.

Vince Kwasniewski, vice president of GTL Resources USA, which owns Rochelle’s Illinois River Energy ethanol plant, included plant electrical costs as a key factor in maximizing plant profit margins. Currently, “we’re generating about 25 percent of our power” using steam, Kwasniewski said.

FarmWeek Page 5 Monday, March 5 , 2012

production

2011 yield estimates reflect weather issues

BY DANIEL GRANT FarmWeek

Crop farmers in 2011 encountered a host of challenges and the final county yield estimates recently released by USDA reflected the situation as statewide yields were down compared to recent years.

The average corn yield statewide last year was 157 bushels per acre, the same as 2010 but down 17 bushels from 2009. “The (corn yield) was well below average,� said Brad Schwab, state statistician with the National AgriculFarmweeknow.com tural Statistics Service Illinois field office. “Some farmers I talked to To learn more about 2011 Illihad issues with corn-on-corn acres.� nois county crop yield estimates, The soybean crop statewide go to FarmWeekNow.com. last year averaged 47 bushels per acre, down 4.5 bushels from 2010. “We had a (hot) dry spell, and farmers really felt the impact,�

Schwab said. “They didn’t see the grain fill (in the crops) they normally would and in many cases the kernel size was smaller.

Corn standing in water in the spring certainly didn’t help, either.�

Production in Illinois in 2011 totaled 1.95 billion bushels of corn, the same as in 2010, and 416 million bushels of beans, down 11 percent from 2010.

The drought that ravaged crops in July and August was the most severe in the southern two-thirds of the state. Subsequently, six of the top 10 counties with the highest harvest yield averages last year are located along or north of the Interstate 80 corridor in Northern Illinois.

The top five counties with the highest corn yield averages are Woodford (186.5 bushels per acre), DeKalb (183.8), Carroll (183.3), Stephenson (181.6), and Stark (181.2) The top five counties with the highest soybean yield averages are Carroll (63.1 bushels per acre), Knox (61.2), Jo Daviess (60.3), Henry (60), and Woodford (59.9).

The harvest yield averages above and those listed in the graphic are not what’s used as a trigger for certain types of crop insurance. Harvested yields are calculated by taking total production and dividing it by harvested acres.

The trigger for some crop insurance policies is the planted yield, which is calculated by dividing total production by the number of planted acres.

The top five counties in total corn production last year were LaSalle (60.1 million bushels), McLean (58.3 million), Iroquois (56.1 million), Bureau (55.4 million), and Livingston (50 million).

The top five counties for total soybean production last year were McLean (14.3 million bushels), Livingston (13.2 million), LaSalle (12 million), Champaign (11.5 million), and Iroquois (11.2).

For other crops in the state, the average yield for the 2011 winter wheat crop was 61 bushels per acre (up 5 bushels from 2010); the average yield for sorghum last year was 91 bushels per acre (down 5 bushels from 2010).

The average yield for oats was 68 bushels (up 3 bushels from 2010); hay production totaled 1.58 million tons (down 18 percent from 2010); and pumpkin production increased 22 percent last year compared to 2010.

lawmaker connection

A Leader in the Field and in the International Marketplace Agriculture needs leaders, and for 30 years the Illinois Agricultural Leadership Foundation has been developing effective policy and decision makers for agriculture.

You’ll find our graduates in leadership roles throughout our nation and the world. Now it’s your turn. We’re accepting applications for our next class.

State Rep. Elaine Nekritz (D-Chicago), the “adopted legislator� of Winnebago County Farm Bureau, talks with, left to right, county Farm Bureau manager Roger Christin, county Farm Bureau board member Brent Pollard, and county Farm Bureau President Earl Williams Jr. Hundreds of state legislators last week discussed issues with Farm Bureau members at a legislator reception during the Governmental Affairs Leadership Conference. (Photo by Kay Shipman)

WENDELL SHAUMAN t $PSO BOE 4PZCFBO 'BSNFS t $IBJSNBO 6 4 (SBJOT $PVODJM t *MMJOPJT "HSJDVMUVSBM -FBEFSTIJQ 1SPHSBN (SBEVBUF

Illinois Agricultural Leadership Foundation

(309) 837-7711 www.agleadership.org

FarmWeek Page 6 Monday, March 5, 2012

risk management

ASA, NCGA leadership targets risk management

BY DANIEL GRANT FarmWeek

Leaders of the American Soybean Association (ASA) and National Corn Growers Association (NCGA) realize many areas of the federal budget, including agriculture, likely face cuts this year.

But one area the two groups believe should be spared from the chopping block is federal crop insurance.

ASA and NCGA last week at the Commodity Classic in Nashville stressed the importance of risk management tools, including crop insurance, as vital measures to protect farmers in a highly volatile environment.

“We recognize the great challenge this nation faces as we try to balance the budget and improve the economy,” said Garry Niemeyer, president of NCGA and a farmer from Auburn.

“But we don’t think cutting crop insurance is a wise thing.”

Niemeyer said the past two growing seasons, which featured widespread flooding and droughts that cut into crop yields and left some fields idle, serve as a reminder that farmers are dependent on insurance and other risk management tools.

Wild price swings in the commodity markets and record-high input costs also have increased the amount of risk for farmers.

“We’re in a more vulnerable position to manage those risks than ever before,” Niemeyer said.

Along with maintaining federal crop insurance, NCGA also called on Congress to include an aggregate risk and revenue management plan in the next farm bill.

“There is a tremendous amount of volatility,” the NCGA president said. “That’s why we’re stressing risk manGarry Niemeyer agement, whether it’s crop insurance or through farm bill policy.”

ASA President Steve Wellman, a farmer from Nebraska, echoed Niemeyer’s concerns and recommendations.

“ASA strongly opposes cuts to crop insurance,” Wellman said. “Any cut to crop insurance is a potentially crushing one for our industry.”

ASA also believes that despite budget constraints funding should be increased for ag research.

“It will expand beneficial research for nutrition, food safety, global food security, and biofuels,” he said.

Demand for soybeans and soy oil is forecast to increase by 75 percent by 2025, ASA reported.

ASA at the Commodity Classic also called for a retroactive extension of the biofuels tax incentive, which expired Dec. 31, and for a more efficient approval process for biotech products worldwide.

These two charts illustrate the growing popularity of revenue-based insurance as a vehicle for maximizing risk management and crop marketing opportunities in Illinois. With the exception of a slight dip in revenue-based policies in 2007 amid a surge in county-based Group Risk Plan (GRP) and Group Risk Income Protection (GRIP) policy purchases, demand for combined production/price protections — above including now-defunct Crop Revenue Coverage (CRC), Income Protection (IP), and Revenue Assurance (RA) policies and current Revenue Protection (RP) and Revenue Protection with Harvest Exclusion (RPHE) products — has risen steadily. Use of yield-only protections — basic catastrophic or CAT, Actual Production History (APH), and current Yield Protection (YP) policies — have declined correspondingly.

RMA issues crop insurance price, volatility factors

BY MARTIN ROSS FarmWeek

USDA is prepared to set spring price guarantees for crop revenue coverages. Now, the ball is in the farmer’s court.

Last week, USDA’s Risk Management Agency (RMA) concluded its price discovery period used to determined final price and market “volatility factors” for corn and soybean insurance products for 2012. March 15 is insurance sales closing date.

Revenue Product (RP) base revenue guarantees are tied to

the February price. RP automatically offers producers the higher of the February price or an October price guarantee, unless they purchases RP with a “harvest price exclusion.”

For most of the Midwest, the projected price for corn is $5.68, while the 2012 projected soybean price is $12.55. That’s compared with $6.01 and $13.49, respectively, in 2011.

The projected price for corn is determined by averaging the closing December futures price during February trading days and for soybeans by averaging

November Futures closing prices. Projected prices do not reflect local basis.

Volatility factors — which gauge potential price risk — are based on an average of the most recent five trading days scaled for the period from March 1 through mid-October.

Corn and soybean volatility factors are considerably lower than in 2011, and that should help reduce premiums and weigh favorably on the value of the harvest price option.

Revenue policies have grown sharply in popularity

across Illinois (see accompanying chart). Country Financial crop insurance coordinator Bob Dewey notes “a lot of uncertainty remains as to what the new farm bill will look like,” and anticipation of farm direct payment elimination leaves revenue insurance as a major income safety net.

“Farmers who protect their operations with crop insurance have peace of mind knowing they don’t have to worry about staying in business the following year if low prices and/or yields impact their individual

operations,” he said.

For guidance on policies, coverage levels, and policy options, consult University of Illinois insurance tools {www.farmdoc.illinois.edu/cro pins/toolbox} and final thoughts {www.farmdocdaily.illinois.edu/2012/03/cro p_insurance_decisions_in_20. html}.

Illinois Farm Bureau risk management specialist Doug Yoder, walks farmers through key decision factors at {www.ilfb.org}, under the Quick Picks menu.

Page 7 Monday, March 5, 2012 FarmWeek

markets

Ag economy could become more export-dependent

BY DANIEL GRANT FarmWeek

Farmers this year and in the future could become even more dependent on ag exports to maintain profitable commodity prices, particularly if farmers plant 94 million acres of corn this spring as predicted by USDA. Ag leaders last week at the Commodity Classic in Nashville emphasized the importance of expanding trade.

“It looks like we could have a large crop, which means a lot more supply,” Wendell Shauman, chairman of the U.S. Grains Council (USGC), a farmer from Kirkwood, and former Illinois Farm Bureau board member, told FarmWeek.

“We’ve seen such large expansion in the use of corn for ethanol in the past, but it’s pretty well plateaued,” he continued.

“If we keep expanding (corn) production, we need new markets.”

And it appears some of the best opportunities to expand sales of U.S. crop and livestock products lie overseas.

A recent USGC report entitled “Food 2040” projected affluent Asian consumers will drive food

demand in the future. The population there is growing, and higher incomes will result in stronger demand for more meat-based protein, according to the report.

“The remarkable growth poses a challenge,” said Tom Dorr, president and CEO of USGC. “Asia is the least able (region of the world) to increase its feed grain production because it has a very dense population and a very limited natural resource base.”

The growth in food production likely will be centered in North and South America, he said.

“The bottom line is trade will be the solution (to meet growing food demand),” Dorr said. “The U.S., Brazil, and Argentina will be the key suppliers.”

Infrastructure updates will be vital, though, for the U.S. to maintain a competitive advantage and boost its ag exports.

The expansion of the Panama Canal means larger ships will be able to increase capacity from 4,500 containers per vessel to 14,000, according to Dorr. USGC recently held an international marketing meeting in Panama and toured the expansion project.

“It’s going to change the

distribution system,” Dorr said. “We have a legacy infrastructure in the U.S., which we need to upgrade.”

The U.S. currently has just one port that will be able to accommodate the larger cargo ships, according to Roy Bardole, chairman of the U.S. Soy Export Council.

“The rest of the world is moving forward,” Shauman said. “Panama decided in 2004 to modernize the canal and in two more years the job will be done.

“We’ve been talking about improving our locks and dams here since at least the mid-1990s,” he continued.

“And, so far, we’ve done basically nothing.”

Farm leaders at the Commodity Classic also called on Congress and the Obama administration to continue to negotiate free trade agreements.

“Trade agreements that significantly improve access to foreign markets are a main focus of ASA,” said Steve Wellman, president of the American Soybean Association.

The U.S. this year is projected to export $131 billion worth of ag products, which would be the second-highest total on record.

Soybeans could become more of a market leader Corn and soybeans could undergo a role reversal this year in the crop markets if recent USDA projections come to fruition.

USDA at its recent Ag Outlook Forum projected a large increase in corn production, a subsequent run-up in corn stocks later this year, and a decrease in corn consumed by the ethanol industry.

Meanwhile, USDA projected record soy exports in 2012/13 (1.55 billion bushels), an 8million-ton (296 million bushel) decline in South American soybean stocks this year compared to last year, and no change in soy plantings (75 million acres) in the U.S. this spring compared to 2011.

U.S. corn plantings this spring, on the other hand, were projected to reach the highest total (94 million acres) since 1944.

The projections could change the current market dynamics which favor corn over soybeans and other crops.

“Soybeans may be taking on more of a price leadership role among major crops,” said Ed Allen, ag economist with USDA’s Economic Research Service.

“We’re expecting a significant decline (20 percent) in corn prices (with a projected seasonaverage price of $5 per bushel) and for wheat prices to be down significantly (13.7 percent) as well,” the economist noted.

“Soybean prices, however, have a separate story which could be helped by production problems in South America.”

USDA projected soybean prices this year will remain strong with a season-average price of $11.50 per bushel, which would be down just 1.7 percent from last year.

The price projections are expected to change the corn/soybean ratio.

“The soybean price has come up a little bit compared to the price of corn,” said Joe Glauber, USDA chief economist. “Moving forward, a lot will depend on what the South American crops look like.”

The news wasn’t all good at the Outlook Forum for soybean price prospects, though.

USDA projected total ag exports to China could decline from $19.9 billion last year to $17 billion this year mostly due to a reduction in soybean and cotton shipments.

Oliver Flake, economist with USDA’s Foreign Ag Service, noted exports to China the first quarter of this fiscal year were down $1 billion from the previous year as Brazil and Argentina increased soybean sales to China, taking sales that otherwise may have originated from the U.S. “Overall, (soy) demand in China has remained steady,” Flake said. “We just lost out (on export sales) the first quarter of the fiscal year.” — Daniel Grant

U.S. eyes TPP expansion, Russia, EU ‘relationship’

BY MARTIN ROSS FarmWeek

The U.S. Trade Representative’s (USTR) office has its eye on more meaningful relationships with Japan, Russia, and the European Union. But the U.S. requires a two-way street from prospective partners, according to a USTR deputy.

Implementation of South Korea, Colombia, and Panama free trade agreements (FTAs) and East-West talks toward a new Trans-Pacific Partnership (TPP) agreement are “the main initiatives we have going forward,” USTR Deputy Assistant for Ag Affairs Roger Wenzel told Illinois Farm Bureau leaders recently.

Wenzel said his agency is pushing for a 2012 accord under “pluralateral” TPP negotiations, which currently include nine nations. The U.S. has FTAs with Australia, Chile, Peru, and Singapore, and hopes to forge new relations with Brunei, Malaysia, New Zealand, and Vietnam through TPP. Canada, Japan, and Mexico currently are exploring membership. That requires a unanimous consensus of TPP countries; USTR has solicited comments from various U.S. “stakeholders” regarding acceptance for the three “aspirant countries,” Wenzel said.

While the U.S. welcomes the interest of these countries, he stressed there will be some issues, particularly with Japan.

He noted concerns about Japan seeking TPP “exclusions” for imports of key domestically grown commodities such as rice.

December accession of Russia to the World Trade Organization (WTO) poses its own challenges.

WTO membership should help ensure Russia “operates under international rules and standards in a more coherent way” and allow the U.S. to “litigate” trade dis‘When other countries putes, Wenzel said. aren’t living up to their That should give the obligations, we’re doing U.S. leverage in dealing with Russian barri- something about it.’ ers to pork, poultry, and other American imports, he said.

— Roger Wenzel But to achieve USTR deputy assistant for ag affairs those gains, Congress must pass legislation approving permanent normal trade relations (PNTR) with Russia.

PNTR officially recognizes Russia’s WTO status, and without it, “in a sense, we would be taking exception to a WTO member,” Wenzel warned. That could relieve Russia’s obligation to honor WTO rules in U.S. dealings “because we’re not reciprocating,” he said.

At the same time, Wenzel held WTO membership alone is not enough for the U.S. to let down its guard. “We would want (Russia) to start behaving in an appropriate fashion right away,” he said.

USTR will continue to be “very aggressive on the enforcement front.” “When other countries aren’t living up to their obligations, we’re doing something about it,” Wenzel said.

The agency also is looking at ways of “deepening the U.S.-European trade relationship.” A bilateral working group is exploring options including a possible FTA, “sectoral” initiatives that address individual trade concerns, and greater mutual discussion of regulatory issues related to imports and exports.

Meanwhile, Wenzel said U.S. officials haven’t given up on hopes of a successful multilateral WTO agreement.

But he maintained a different approach is needed to revive the talks, arguing larger developing countries such as Brazil, India, and China must “step up to the plate” and offer greater market access.

FarmWeek Page 8 Monday, March 5, 2012

Food ISSUES

Food price inflation projected to moderate

BY DAN GRANT FarmWeek

U.S. consumers likely will pay more for their groceries this year, according to the latest USDA projection.

But the boost in food prices is expected to be more modest this year after nearly a 5 percent increase in 2011.

“Food inflation has begun to abate a bit,” Joe Glauber, USDA chief economist, said recently at the USDA Ag Outlook Forum. “That’s very good news for U.S. households.”

USDA’s Economic Research Service (ERS) recently projected food prices this year will rise by 2.5 to 3.5 percent, which is in line with the 10year average and down from

4.7 percent last year.

“It’s unlikely we’ll see a onetwo punch like we saw in 2007 and 2008 (when food prices jumped by 4 percent and 5.5 percent, respectively),” said Richard Volpe, ERS economist.

In fact, food price inflation over the past four decades actually moderated despite the recent spikes. The annual increase in food prices in the decades of the 2000s and 1990s averaged 2.8 percent compared to 4.6 percent in the 1980s and 8.1 percent in the 1970s.

“We expect food price inflation will come down in 2012 and beyond,” Volpe said.

The retreat in food price

inflation this year is due in part to the expectation of larger crop production from farmers around the world.

In the U.S, farmers were forecast to boost plantings by 2.1 percent for corn and 3.5 percent for wheat.

Meanwhile, USDA projected a slight decline in corn used for ethanol production.

“Crop prices are projected to retreat from (the recent) peak, but not decline back to pre-spike levels,” said Ron Trostle, ERS economist. “But we do not see meat prices declining as we do for crops.”

Meat prices this year, similar to last year, are projected to post the largest price increases of any food.

Prices in 2011 jumped by 10.2 percent for beef, 8.5 percent for pork, and 7.1 percent for seafood.

This year, beef and fish prices were projected to rise 4 to 5 percent while pork and poultry prices were forecast to rise by 3 to 4 percent.

ERS said higher meat prices are the result of tight supplies and booming demand.

“World per capita meat consumption from 1975 to 2010 increased by 28 pounds

per person,” Trostle said.

“That’s a fairly astonishing trend.”

Meanwhile, he continued, “When the world economy started to grow again in 2010, cattle and hog produc-

ers weren’t in very good position to respond.”

The U.S. cattle herd, as of Jan. 1, totaled just 90.8 million head, which was the lowest herd size for that time of year since 1952.

BY KAY SHIPMAN FarmWeek

College (JLCC), Carterville.

March 30 is the deadline for making reservations for that event, and reservations may be made by calling 618-993-2609.

Event organizers include IFB, U of I Extension, ISGA, JLCC, the office of Lt. Gov. Sheila Simon, Illinois Department of Commerce and Economic Opportunity, Illinois Rural Development, Connect SI Foundation, and county Farm Bureaus in Williams, Jackson, Union, and several counties throughout Southern Illinois.

At both events, farmers will hear individual presentations by each buyer. After each concludes, there will be opportunities for one-on-one meetings with farmers, who then can fill out applications with details about their crops and other information about their operations.

With the farmers’ permission, the completed applica-

Growers invited to meet buyers at two meetings Specialty crop growers with any size operation will have two opportunities to meet a variety of buyers March 27 in Champaign County and April 4 in Williamson County.

The two meet-the-buyer events will include educational sessions, according to Cynthia Haskins, Illinois Farm Bureau manager of business development and compliance.

The mix of businesses represented will include grocery stores, food cooperatives, food banks, restaurants, and food service distributors.

“There will be something for everyone. For someone with just enough to sell to one store, we will have buyers, and for others with more volume, they have opportunities,” Haskins said.

Mike O’Brien, vice president of produce and floral with Schnucks Markets Inc., said representatives of his company will attend both events and are interested in meeting new growers, especially in the Central Illinois corridor.

Locally grown foods “is a very important program and is important to our customers,” O’Brien said.

Marcia Whelan, marketing and community relations specialist with Whole Foods Market Town and Country, said her company is interested in expanding the local foods it offers customers and store employees.

Based on its customer demand, Whole Foods buys locally grown food to support local farmers and the economy, Whelan added.

The March 27 event will run from 8:30 a.m. to 5 p.m. at the Champaign County Farm Bureau, Champaign. It will be hosted by the county Farm Bureau and the University of Illinois Extension. Other collaborators include Central Illinois county Farm Bureaus, IFB, and the Illinois Specialty Growers Association (ISGA).

March 22 is the deadline for making reservations to the Champaign event. They may be made by calling 217-352-5235.

The April 4 event will run from 8:30 a.m. to 5 p.m. at the John A. Logan Community

‘There will be something for everyone.’

— Cynthia Haskins Illinois Farm Bureau

tions will be sent to the buyers in which the farmers were interested.

Haskins recommended farmers who have business fliers or business cards bring them for the buyers; however, the applications will provide buyers the needed information, she noted. Farmers are not to bring any product samples.

Two separate seminars about food hubs will be held from 7 to 9 p.m. on the same days and at the same locations. Farmers who want to learn about food hubs and explore collaborative opportunities are encouraged to attend.

Register for the Champaign food hub seminar by contacting the Champaign County Farm Bureau and for the Carterville seminar by contacting the Williamson County Farm Bureau.

Page 9 Monday, March 5, 2012 FarmWeek

sustaining ag

Attorney: Florida ruling challenges ‘bad science’

BY MARTIN ROSS FarmWeek

A Florida ruling offers “good precedent with regard to bad science” and potential ag ammunition in the effort to rein in questionable federal “clean water” rules, according to an attorney with a national legal advocacy group.

A Tallahassee U.S. District Court ruled Environmental Protection Agency (EPA)-imposed nutrient criteria for Florida streams and lakes are unlawful and have no scientific basis.

The ruling addressed numeric nutrient criteria, a key

issue in controversial Chesapeake Bay watershed standards and concerns about similar plans for the Mississippi River Basin.

The court held EPA could not show its criteria for regulating streams were needed to prevent environmental harm – a requirement of Florida law.

It challenged attempts to prohibit any increase above naturally occurring nutrient levels in so-called “pristine waters,” questioning the assumption “that any increase ... is harmful,” according to American Farm Bureau Federation Gen-

eral Counsel Ellen Steen.

M. Reed Hopper with the Pacific Legal Foundation’s Environmental Practice Group, was unsure what impact the ruling would have on future EPA policy. EPA typically uses rulings in its favor as precedent elsewhere but tends to “isolate the impact of adverse decisions,” he said.

As a district case, the Tallahassee ruling has limited “precedential value” on a national level, Hopper added.

“But the logic of the decision can be persuasive any-

where ... as the agency is setting nutrient criteria or TMDLs (nutrient total maximum daily load requirements) in another area,” he told FarmWeek.

EPA has until May 21 to revise numeric nutrient criteria for Florida. AFBF favors a plan by the state’s Department of Environmental Protection.

The federal Clean Water Act specifically grants states “the power to decide how to achieve water quality standards,” AFBF’s Steen said.

AFBF also has asked the courts to rule on TMDL rules

for the six-state Chesapeake Bay region. A new University of Delaware study found poultry manure and nitrogen levels in the bay to be lower than EPA estimates, a result, the study said, of management, feed, and genetic advances over the last 30 years.

Noting Chesapeake-style concerns in the Los Angeles Basin, Hopper sees nutrient standards as “a hot enough issue” to spur further cases within the federal appeals courts and possibly an eventual hearing before the U.S. Supreme Court.

Group exploring the characteristics, uses of biochar

BY KAY SHIPMAN FarmWeek

Much remains unknown about possible field uses for biochar, but the Illinois Biochar Group is exploring research data and field trials.

Biochar is a high-carbon, fine-grained, porous material produced from biomass using low temperatures and lowoxygen combustion. The material is different from charcoal, which is produced from heat and mainly used as fuel.

“There are still a lot of unknowns” about biochar

uses in Illinois, said the group’s coordinator, Nancy Holm of the Illinois Sustainable Technology Center.

“There are some characteristics that are helpful, such as retaining water (in soil) and retaining nutrients ... There also is the potential for harmful products.”

Biochar isn’t a uniform product and much depends on the feedstock used in its production and the preparation and storage methods, Holm pointed out.

She said the group has fielded questions about

Federal safety effort helpful or misdirected?

The 2010 deaths of two teens at a Mount Carroll elevator continues to cast ripples throughout both rural communities and the Illinois grain industry.

But Greg Weidner, manager of Demeter Grain’s South Beloit elevator, is concerned some federal efforts in the wake of the tragedy could disrupt rather than strengthen the industry and deprive young ‘We’re one of the people of employment.

Weidner, who lobbied major employwith other agribusiness ers.’ interests recently on Capitol Hill, is concerned about a variety of issues, from the — Greg Weidner potential impact of new Demeter Grain congressional financial reforms on grain handlers and their customers to proposed new Department of Labor (DOL) ag child labor rules.

A 19-year-old Haasbach LLC elevator employee suffocated while trying to free a 14-year-old from stored corn at the Mount Carroll facility in July 2010. He also perished.

Weidner stressed that, “as a commercial elevator, we’re very cognizant of safety” — Demeter Grain prohibits bin entry by teens.

“We’re very serious about that,” Weidner told FarmWeek.

He is concerned DOL’s subsequent push for more stringent restrictions on chores younger teens can perform around grain storage facilities could prevent youths from taking non-hazardous “good teenager jobs” such as remotely operating grain scales, sweeping driveways, painting, or trimming shrubs.

In a small community, “we’re one of the major employers,” particularly for adolescents, he said. — Martin Ross

biochar from farmers and gardeners who are interested in using it as a soil amendment; however, the Illinois Biochar Group advises interested individuals to start with small biochar test plots.

“We don’t want people to use this if it will harm their crops,” she said.

Soil types also influence

biochar benefits, according to Holm. Soils high in organic matter may benefit less from biochar compared to soils with less organic matter.

In addition to beneficial soil properties, biochar also is being studied for its potential to sequester carbon in the soil and its absorption properties as a landfill cover.

As one of the few biochar groups in the Midwest, the Illinois group has members from Iowa, Minnesota, and Wisconsin. The group posts research results, studies, and related information online at {www.biochar.illinois.edu}.

Holm may be reached by email at nholm@istc.illinois.edu or by phone at 217-244-3330.

FarmWeek Page 10 Monday, March 5, 2012

master farmers

Four Illinois Farm Bureau members named Master Farmers Four Illinois farmers, all Illinois Farm Bureau members, have been selected as 2012 Master Farmers by Prairie Farmer magazine. The four will be honored at a ceremony in Bloomington Wednesday.

Award recipients are Scott Bidner, Champaign (Champaign County); Tim Lenz, Strasburg (Shelby County); Tim Seifert, Auburn (Sangamon County); and Mel Von Bergen, Hebron (McHenry County).

Candidates are nominated by farmers, agribusiness leaders, and agricultural Extension specialists from throughout the state.

Prairie Far mer first offered the award in 1925, when editor Clifford Gregory established it as a way

to recognize Illinois far mers for something more than just far ming skills.

Gregory felt the award would help give far m people a greater sense of “pride and per manence.”

All together, more than 300 Illinois people, including the four named this year, have been named Master Farmers or honorary Master Farmers.

GROWMARK Inc. serves as financial sponsor of the award. Like the Master Farmer award, the GROWMARK system was born during the 1920s when farmer cooperatives first organized the Illinois Farm Supply Co. Today, the brand is known as FS. The 2012 Master Farmers are: Scott Bidner: After a career that took him from the top management of the Illinois Corn Growers Asso-

ciation and the Illinois Corn Marketing Board to the halls of the U.S. EPA in Washington, D.C., Bidner Scott Bidner returned home to farm with his aunt and uncle.

Sixteen years ago Bidner and his wife, Karen, found themselves with a toddler at home and twins on the way, living in D.C. and yearning to move back to Illinois.

“I feel blessed to be able to farm,” Scott said, “and I couldn’t have been more surprised when my aunt and uncle offered me the chance to farm.” His uncle, Richard Rayburn, was named a Master Farmer in 1986.

Since then, he has bought out his uncle’s equipment line, increased the acreage he

operates, and sent his oldest off to college.

Bidner worked as the first director of market development and later as executive director for the Illinois Corn Growers Association and Illinois Corn Marketing Board, then spent five years in the office of international activities with the U.S. EPA. Tim Lenz: His commitment to farming followed him all the way through the University of Illinois.

After graduation, he was presented with a job offer as an ag lender in Tim Lenz Western Illinois. Instead, he chose to come back to Shelby County, where he could work as a banker and still maintain the family farm.

When the father of Lenz’s wife, Delreen, offered him the opportunity to become a full-time farmer, Lenz happily signed on. Despite farming nearly 3,000 acres, he still finds time for everything from coaching fifth grade basketball to leading the Illinois Corn Growers Association as its president in 2010.

Lenz’s enterprise rests primarily on his shoulders. Don Schmidt (his father-in-law) and dad, Larry, still help farm. Tim also has a longtime friend and employee, Rick Wallace, who also works on the farm. He doesn’t hire any seasonal help.

Tim Seifert: A natural curiosity led him to devote 30 acres to small-block research for Monsanto and another five acres for University of Illinois researchers to look at seed traits, chemistries, Tim Seifert population, nitrogen management, and new technologies.

“It’s so we can pass that information on to the rest of my farming operation,” Seifert said. “We had SmartStax here on the farm before it was even released.”

Seifert began farming with his father, Ed, back in high school. He rented his first farm in 1982 and still farms it today. Over time, he and his wife, Roxy, bought out his father, who officially retired in 1999, though he still enjoys helping in spring and fall. Today, they raise corn and soybeans and

employ two full-time employees, Al Bailey and Cody Mohler.

Seifert has practiced conservation tillage since 1982.

He has installed many waterways and controlled structures as needed, and has 200 acres of terraces. He strip tills all of his corn and uses minimum till on soybeans to maintain at least 35 percent residue. The Seiferts apply nitrogen in four different shots: a small amount in the fall, 10 gallons pre-plant, three gallons of starter, and the rest as sidedress.

He grows a combination of GMO corn and foodgrade white and yellow corn, which is shipped into the Chicago food system. His also grows 100 percent of his bean crop as seed for Monsanto and Pioneer.

Mel Von Bergen: Growing up, Von Bergen’s family farmed just a couple miles east of where O’Hare International Airport now sits.

In 1946, his parents purchased a farm Mel Von Bergen west of O’Hare. Fifteen years later they sold that land for use as a shopping center.

The family then moved to McHenry County, settling near Hebron. Von Bergen married Bobette Shulz in 1965 and they moved just down the road and struck out on their own farming enterprise and are still farming in the Hebron area, growing vegetables and cash grain crops. Their fresh produce offerings draw a wealth of Chicago visitors en route to Wisconsin’s Lake Geneva.

When Von Bergen got into the vegetable business some 30 years ago, produce stands were plentiful in the surrounding Chicago area.

Today, produce stands are becoming few and far between as most plant less labor-intensive crops.

Von Bergen says conversations with urban visitors are usually enjoyable, as long as the inquiring mind is actually willing to learn about agriculture. “We enjoy the interaction,” he noted.

The Von Bergens are in the midst of turning the reigns over to the next generation in the line of Von Bergen farmers — son Mike and daughter-in-law, Tracie, now tend 1,400 acres, 100 of which are dedicated to fresh produce.

Page 11 Monday, March 5, 2012 FarmWeek

illinois initiative

Administration proposes escalating Asian carp efforts

BY MARTIN ROSS FarmWeek

The Obama administration has released a 2012 Asian Carp Control Strategy Framework outlining 58 new actions that build on efforts to protect the Great Lakes from Asian carp.

That effort is deemed crucial to Midwest officials, conservation and sporting groups worried about the voracious carp’s impact on the Great Lakes ecosystem, and commercial interests that have fought proposals to close key Chicagoarea locks and potentially hinder Midwest navigation.

“A lot of people care and are trying to make progress,” U.S. Army Corps of Engineers Great Lakes/Ohio River Division Commander Margaret Burcham told FarmWeek.

“Everything points to the fact that the temporary steps we’re taking are working.”

The division commander works with the Asian Carp Coordinating Council, which also includes representatives of the U.S. Fish and Wildlife Service and the Illinois Department of Natural Resources. The White House Council on Envi-

ronmental Quality monitors state and federal efforts.

The administration recommends: • Continuing a Great Lakes and Mississippi River Interbasin Study to identify cost-effective and efficient ways to prevent movement of the carp and other “aquatic nuisance species” between the Mississippi system and the Great Lakes. The study is to be completed by fall 2014.

An interim report has identified 90 known technologies that could prevent species transfer.

• Evaluation of an existing electric barrier between the Illinois River and the Chicago waterway system, through fish tagging and sonar equipment.

At this point, Burcham sees the barrier as “insurance”: “The Asian carp has not reached that barrier yet — it may be about 57 to 60 miles south.”

• Initial construction of a permanent electric barrier to replace the original one built in 2002.

• Partnering with commercial fishermen and industry. Asian carp is favored by Asian consumers, and Corps program director Hiroshi Eto said New

IPT bull sale pulls record $$ The Illinois Performance Tested (IPT) Bull Sale recently generated the highest overall average price in the 44-year history of the event — $3,445 on 77 lots.

This exceeded the 2010 sale by $907 and the record 2011 average by $465.

The sale was the leadoff event of the 2012 Illinois Beef Expo. The University of Illinois Extension, U of I Department of Animal Sciences, and consigning breeders sponsor the sale.

Vita Ferm, Illinois Angus Association, and Illinois Simmental Association also provided support.

This sale has developed into one of the largest performance tested bull sales in the Midwest. During the past 44 years, 4,458 bulls valued at more than $7.5 million dollars have been sold at the event, according to Dave Seibert, bull sale manager. There were four breeds — Angus, Simmental, Polled Herefords, and Red Angus — represented in the 2012 sale.

A highlight of the sale was a yearling Angus from Kramer Angus, Farina, that was sold to Alta Genetics, Watertown, Wis., for a new IPT Bull Sale record of $8,800.

Meanwhile, a Rincker Simmental of Shelbyville senior division bull sold for $8,000 to Patyk Farms and Livestock of LaSalle. This was the third-highest price ever of the bulls sold at the bull sale.

The Simmental breed had its most successful sale ever with 19 bulls averaging $3,684. This exceeded the previous high average for Simmentals of $2,565 set in 2008.

Three Polled Herefords were sold and had the second-highest breed average in the sale at $3,467. Their average price was $750 higher than the 2011 sale.

Producers interested in viewing a breakdown of all the prices may visit the Illinois Performance Tested Bull Sale website at {www.IPTBullSale.com}.

Also included on this site are the individual bull prices from the 2012 sale and the numbers and averages from the previous 43 sales.

Seedstock breeders interested in consigning to the 2013 sale should call Seibert at 309-339-3694, send a request to seibertd@comcast.net, or write to 300 North Street, Washington, IL 61571 to request a hard copy of the rules and regulations and a nomination form.

Orleans chefs are experimenting with the fish. Eto also cited talk of using carp in fertilizers.

Meanwhile, Illinois officials have encouraged fishermen to increase carp harvest. “That’s not going to be the whole solution, but it is reducing the population,” Burcham said.

• Development of long-term management strategies for Asian

carp, environmental DNA (eDNA) sampling to determine possible presence of fish in an area, and habitat assessment.

Indiana built a fence across one marsh to prevent transfer of carp into the Great Lakes in the event of flooding.

• Field-testing of technologies to eradicate species, as well as methods

to reduce carp breeding.

• Efforts to reduce uncertainty regarding eDNA results.

“If we were to find DNA, it doesn’t mean we have the fish, because there are different ways DNA can be introduced into waterways,” Burcham stressed.

“It could be through wastewater that contains DNA from fish in another location.”

GrassRoots Issue Teams study challenges, issues

BY KAY SHIPMAN FarmWeek

Throughout early 2012, the eight Illinois Farm Bureau GrassRoots Issue Teams (GRITs) have studied current issues and policy.

Their report was accepted by the IFB board at its February board meeting.

In that report, the Crop Production and Trade Team recommended IFB continue to pursue common-sense solutions for state and national trucking regulations and encouraged the organization to work with other associations, groups, and agencies on the issues.

The team also encouraged IFB to continue monitoring the Grain Inspection, Packers, and Stockyards Administration (GIPSA) reforms and ongoing developments.

The Rural Life Team is considering the feasibility and usefulness of a statewide study on local government structure and finance with a goal of improving local government efficiency.

IFB conducted a local government study in 1968.

Other issues discussed by the teams include local food initiatives, crop insurance, equine-related projects in education curriculum, and immigration.

Team members are being encouraged to gain grassroots input on those issues and others for team discussions.

Teams will meet again in the near future before completing their final report to be presented to the IFB board at its May meeting.

For more information on GRITs or how you can have input on the issues they are studying, contact your county Farm Bureau.

FarmWeek Page 12 Monday, March 5, 2012

FB IN ACTION FOOD CHECK-OUT WINNERS

Marlene McIntosh of Springerton collects food items while participating in a recent shopping event in Hamilton County to collect food for distribution by three local food pantries. (Photo by Chris Bunting, Hamilton County Farm Bureau manager)

FB volunteers collect 2,500 pounds of food

BY CHRIS BUNTING As Capt. Cornelius looks on, Galesburg radio personality Eric Hanson of FM95, right, gives teammate Amanda Lamb of Galesburg a high five after winning a grocery race celebrating Food Check-Out Week. Julie Butler of Cameron and FM95 morning co-host Ted Bevenour, left, earned second place.

Food Check-Out Week commemorates the week in which the average family of four has earned enough money since Jan. 1 to pay for a year’s worth of food.

The Knox County Farm Bureau and the local Corn Growers association organized a grocery race that was broadcast live on the FM station. At the conclusion of the race, at Galesburg’s East Main Street HyVee store, $215 worth of food items containing corn had been collected for donation to the local food pantry. (Photo by Joanie Stiers)

Three Hamilton County food pantries have about 2,500 pounds of food that can be distributed to the needy, thanks to Farm Bureau volunteers in the county.

As part of the “Farmers and Friends Feed the Need” event, 16 shoppers and seven additional Farm Bureau volunteers collected 2,220 food items which were divided among the three pantries.

The shoppers used a combi-

nation of coupons, in-store specials, and personal thriftiness to get the largest amount of food possible in two hours of shopping.

The shoppers were given $100 each prior to beginning shopping, and the shopper who purchased the most with his or her funds at each store received a $200 gift certificate.

Second prize was a $50 gift certificate.

First and second place winners, respectively, at Tom’s Priced Right Foods were Chris Taylor, who spent exactly $100 and purchased 383 items, and

Josh Gibbs, who bought 94 items and had 14 cents left of his allotted funds. Both are from McLeansboro.

At the Food Park, the respective first and second place winners were Linda Blackwell, who purchased 170 items and had 7 cents left, and Abby Reynolds, who purchased 135 items and had 73 cents remaining. Both also are from McLeansboro.

The Hamilton County Farm Bureau organized the event and collected donations from the following sponsors to provide funds for the shoppers: 4R Equipment, McLeansboro; Peoples National Bank; Country Financial agents Ted Broyles, Bret Vaughan, and Ray Melton; and Schilling Farms in Dalhlgren.

County Farm Bureau President Larry Schilling praised the volunteers, stores, and sponsors.

“We need to support our communities locally. Everyone is talking about world hunger.

We need to fight the battle here at home first,” he said.

Chris Bunting is manager of Hamilton County Farm Bureau. He can be reached at 618-643-2347.

BRACING FOR A CRASH

Ford-Iroquois Farm Bureau member Robert Lindgren braces for an abrupt stop as Illinois State Police officer N.L. Baker, a safety education officer, prepares to release a cart that will travel at 7 mph. The seat belt demonstration was offered during the Illinois Farm Bureau Governmental Affairs Leadership Conference in Springfield last week. (Photo by Kay Shipman)

Page 13 Monday, March 5, 2012 FarmWeek

from the counties

C

ARROLL — The Carroll County Farm Bureau Foundation scholarship applications are available at the website {www.carrollcfb.org} or at the Farm Bureau office by calling 815-244-3001. Deadline to submit applications is Friday, March 23.

• The 4C’s Prime Timers will sponsor a bus trip Friday, May 4, to the Putnam Museum, Davenport, Iowa.

The bus will leave the Farm Bureau office at 11:30 a.m. and return by approximately 7 p.m. Call the Farm Bureau office at 815-244-3001 for more information.

ASS-MORGAN — Applications for the Cass-Morgan Farm Bureau Foundation scholarships are available at the Farm Bureau, Extension, school agriculture departments, and guidance counselor’s offices.

Deadline to return applications to the Farm Bureau office is March 23.

LARK — An “On the Road” seminar will be at 6:30 p.m. Thursday at the Farm Bureau office. Call the Farm Bureau office for more information.

LINTON — Farm Bureau will host a legislative breakfast at 7 a.m.

Monday, March 12, at the Farm Bureau office. State Sen. John O. Jones (R-Mt. Vernon); Sen. David Luechtefeld (R-Okawville); state Rep. Mike Bost (RMurphysboro); state Rep. John Cavaletto (R-Salem); and state Rep. Paul Evans (R-Offalon) have been invited to attend. Call the Farm Bureau office for more information.

ORD-IROQUOIS — The annual meeting will be at 7 p.m. Thursday at the Farm Bureau office. Call the Farm Bureau office for more information.

• An “On the Road” seminar will be at 7 p.m. Tuesday, March 13, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker.

RUNDY — An “On the Road” seminar will be at 7 p.m. Monday, March 12, at the Farm Bureau office. Kevin Rund, Illinois Farm Bureau senior director of local government, will discuss federal truck regulations. Call the Farm Bureau office at 815942-6400 for reservations or more information.

ANCOCK — Farm Bureau will sponsor promotion from 10 E-85 its a.m. to 1 p.m. Friday, March 9, at Roger Laws Service Station, Carthage. Fuel will be

C

C C

F

G

H

85 cents per gallon with a maximum of 10 gallons per customer. Farm Bureau also will serve potato soup, hot dogs, chips, and soda to those who purchase fuel.

• The Hancock County Farm Bureau Foundation will offer three $1,000 scholarships to Hancock County students. The scholarships will be awarded to students who pursue a secondary education in an agriculture-related field of study. Applications are available from high school guidance counselors, FFA advisers, and at the Farm Bureau office. Deadline to return applications is April 1.

Call the Farm Bureau office at 217-357-3141 or e-mail hcfb@frontier.com for more information.

ASPER — An “On the Road” seminar will be at 1:30 p.m. Thursday at the Farm Bureau office. Call the Farm Bureau office for more information.

ANKAKEE — The 100th annual meeting will be at 5:30 p.m. Thursday, March 15, at the Hilton Garden Conference Center, Kankakee. Bob Stallman, American Farm Bureau Federation president, will be the speaker. Dinner will be served. A string quartet from Olivet Nazarene University music department will provide the entertainment. Cost is $15 for members and $30 for non-members. Call the Farm Bureau office at 815-932-7471 for reservations or more information.

NOX — The Women’s Committee will donate a baby basket filled with agricultural items to the first baby born in Knox County in March.

• The Young Farmers are sponsoring a “31 Days of Farming” campaign during Ag Month. Each day during March, an ag fact will be announced on a local radio station and posted on the Facebook page.

ASALLE — The board of directors and Viewpoint Committee will host a call-a-thon from 7 to 8 p.m. Tuesday, March 13. They will call members and solicit opinions on current and future actions of the Farm Bureau. Those who don’t receive a call and wish to offer an opinion should call their district director or the Farm Bureau office at 433-0371.

• Farm Bureau has discounted the price on its SMV (slow-moving vehicle) decals. Cost is $2. Call the Farm Bureau office for more information.

EE — An “Easements and Your

J

K

K

L

L

Farm” meeting will be at 7 p.m. Wednesday, March 21, at the Farm Bureau office.

Landowners will learn about easement agreements related to public utility or pipeline projects crossing their land and if there is an existing easement agreement on their property. Call the Farm Bureau office at 815857-3531 or e-mail leecfb@comcast.net by Friday, March 16, for reservations or more information.

• Farm Bureau will offer Lee County plat books for $20 each or two for $30 during the month of March in honor of Illinois Farming Month. Call the Farm Bureau office at 857-3531 for more information.

ASON — Farm Bureau personnel will visit second and third grade students in the county the week of March 12 with a lesson about what crops are grown in the county and what byproducts come from those crops. Farm equipment will be taken to the schools so students can have a hands-on experience.

ENARD — Farm Bureau will donate agriculture books to the local public libraries during the month of March.

ERCER — Farm Bureau and the Mercer County Health Department will sponsor a men’s health breakfast from 8 to 11 a.m. Wednesday at the First Baptist Church, Aledo. Free blood pressure checks, prostate cancer screenings, and smoking cessation tips will be given.

Call the Farm Bureau office at 309-582-5116 for more information.

• An “On the Road” seminar will be at 10 a.m. Monday, March 12, at the Reynolds American Legion.

Kevin Rund, Illinois Farm Bureau senior director of local government, will be the speaker. Call the Farm Bureau office at 309-5825116 by Friday for reservations or more information.

• The Mercer County Farm Bureau Foundation has scholarships available for high school seniors and current college students.

Applications are available on the website {www.mercercfb.org}. Deadline to return applications is March 31. Call the Farm Bureau office at 309-582-5116 for more information.

EORIA — A market seminar will be at 8 a.m. Wednesday at Exposition Gardens, Peoria. John Roach, agribusiness consultant, will be the speaker.

Call the Farm Bureau office

M

M

M

P

at 686-7070 for reservations or more information.

• The Prime Timers will meet at 1 p.m. Wednesday at the Farm Bureau auditorium. Brian Puetz, Illinois Farm Bureau regional manager, will give a presentation on his recent trip to the Holy Land. Call the Farm Bureau office for more information.

• The Farmers Share of the Food Dollar breakfast will be from 7 to 11 a.m.

Saturday at the Youth Expo Building, Exposition Gardens, Peoria. Cost for a pancake breakfast with sausage, eggs, milk, and juice will be 85 cents. A drawing for a Kroger gift card will be made. Two hundred color photos from the Farm Bureau photo contest will be displayed, and farm equipment dealers will exhibit tractors. Ron Wasson, rural Peoria County, will have an educational exhibit featuring live miniature farm animals. A silent auction to raise funds for the Peoria County Farm Bureau Foundation will be held. Soy candles, lotion made from soybeans, cleaners made from corn, and new 2012 plat books will be available for purchase. Call the Farm Bureau office at 309-686-7070 for more information.

HELBY — The Young Farmers will sponsor a farm-city breakfast from 6:30 to 8:30 a.m.

Thursday at the Shelby County 4-H Center, Shelbyville. A menu of biscuits and gravy, scrambled eggs, bacon, mixed fruit, juice, milk, and coffee will cost 80 cents.

TARK — Farm Bureau will sponsor a bus trip Wednesday, April 11, to the Abraham Lincoln Presidential Museum, Springfield. The day trip will include lunch on your own at Cracker Barrel, a guided tour of the museum, and bus transportation. Cost is $65, which is due Monday, March 12. Call the Farm Bureau office at 286-7481 for more information.

TEPHENSON — A second bus trip to John Deere Harvester Works, John Deere Pavilion, and Kinze Manufacturing will be Wednesday, March 28. The bus will leave Freeport at 6 a.m. Details are available at the website {www.stephenson cfb.org}.

Call the Farm Bureau office at 815-232-3186 for reservations.

• Only a few seats remain for the June 5 Cubs vs. Brewers game in Mil-

S

S

S

waukee. The Aug. 20 Cubs vs. Brewers game in Milwaukee is filling up quickly.

Call the Far m Bureau office at 815-232-3186 for reser vations.

ERMILION — A Young Leader meeting will be at 7 p.m. Tuesday at the Far m Bureau auditorium. Tom Stoddard, Stoddard Ag Ser vices, will be the speaker. He will discuss spring preparations and how the mild winter will affect the upcoming growing season. All Far m Bureau members may attend. Call the Far m Bureau office for more infor mation.

• The Marketing Committee will sponsor an ag finances and land values program at 9:30 a.m. Monday, March 12, at the Far m Bureau auditorium. A panel of four bankers and land appraisers will discuss the current financial situation in agriculture as it pertains to loans and land prices.

Call the Far m Bureau office for more infor mation.

AYNE — The annual meeting will be at 6 p.m. Friday at the Cumberland Presbyterian Church, Fairfield.

The Young Leader Committee will collect non-perishable food items, as well as offer valet service for a donation.

Proceeds will benefit the Harvest for All program. The Roasted Chestnuts will provide the entertainment. Call the Farm Bureau office at 618842-3342 for reservations.

The annual meeting notice is posted on the website {www.waynecfb.com}.

• Farm Bureau will sponsor a program “Land Contracts and Leases” at 1 p.m.

Tuesday at the Cumberland Presbyterian Church. Laura Harmon, Illinois Farm Bureau assistant general counsel, will review various leases offered by land companies. Call the Farm Bureau office at 618-8423342 for reservations or more information.

V

W

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

FarmWeek Page 14 Monday, March 5, 2012

profitability

USDA economist sees no signs of farmland bubble

BY DANIEL GRANT FarmWeek

Joe Glauber, USDA chief economist, understands skyrocketing farmland values may make some farmers nervous, particularly those who remember the farm crisis of the 1980s.

But the financial outlook for agriculture remains strong, and Glauber sees no signs of a farmland bubble or reasons for an imminent collapse in prices.

Farmland values were a hot topic recently at the USDA Ag Outlook Forum in Arlington, Va. “A lot of areas have seen incredible growth in real estate values,” Glauber told FarmWeek. “Nationwide, we’ve seen asset values

increase by more than 5 percent (annually) for the last three years and in the Midwest it’s been much larger than that.”

The Federal Reserve Bank of Chicago recently reported farmland values in its disJoe Glauber trict, which includes parts of Illinois, Indiana, and Iowa, jumped 25 percent in the fourth quarter of 2011 and 22 percent for the year. It was the largest yearly increase in the district since 1976.

The Kansas City Federal Reserve Bank also reported a

25 percent increase in farmland values.

“There are a lot of good reasons why land values are increasing, including very low interest rates and a very positive income picture,” Glauber said.

USDA reported net cash income in 2011 set a record.

This year, USDA is projecting net income will slip a bit but still total $96.3 billion, which would be the second-highest on record.

“Producers have been very prudent with how they financed expansion,” Glauber said. “A lot of (farmland) sales have been cash-based sales.

“That makes for a very healthy picture,” he continued, “even if you’re nervous about

the increase in land values.”

USDA’s Economic Research Service (ERS)

viewed online at {www.ers.usda/gov}, also noted the cyclical nature of farm-

‘There are a lot of good reasons why land values are increasing, including very low interest rates and a very positive income picture.’

— Joe Glauber USDA chief economist

recently released a report indicating “trends in farm incomes, cash rents, and interest rates suggest that farmland values were supported by farm earnings in 2009 and 2010.”

The report, which can be

land values suggest the possibility of a market correction in the future.

Increases in interest rates or a significant drop in commodity prices would put downward pressure on farmland values, according to the report.

Propane prices feeling natural gas pressure

BY RANDY MILLER

It won’t be long until talk of baseball, corn planting, and spring flowers will fill the local coffee shop.

The winter of 20112012 likely will go down as one of the Randy Miller warmest on record, as heating degree days in Rockford were only

75 percent of the previous three years in December and January, with February appearing to be even warmer.

With propane inventories at high levels and production in the U.S. continuing to grow, what shall we expect as we look ahead?

Propane prices appear to be influenced more today by natural gas than crude oil.

For years, nearly all propane was made within the refining process and fractionat-

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head $33.08-$54.85 $69.19 no longer reported This Week 106,215 *Eastern Corn Belt prices picked up at seller’s farm

Weighted Ave. Price $43.17 $69.19

by USDA Last Week 101,158

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $80.65 $83.02 $59.68 $61.43

Change -2.37 -1.75

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 129.80 128.22 1.58 130.27 128.43 1.84

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) Prev. week Change This week $156.42 156.50 -0.08

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-165 lbs. for 149.63-181.45 $/cwt. (wtd. ave. 158.25); dressed, no sales reported.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 02-23-12 37.0 9.4 27.0 02-16-12 38.5 22.3 34.8 Last year 50.4 19.6 25.2 Season total 870.4 724.6 803.1 Previous season total 1152.4 862.5 804.2 USDA projected total 1275 975 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

ed, or split out, from the natural gas stream.

As you might expect, with the oil shale plays developing in the U.S., these numbers are changing.

In 2000, approximately 585,000 barrels per day of propane were produced from crude oil, while about 540,000 barrels were produced from natural gas.

In 2009, about 325,000 barrels came from crude oil, with 565,000 barrels from natural gas.

Forecasters are suggesting that by the year 2016, crude oil will account for only about 275,000 barrels of propane production, with natural gas accounting for about 725,000 barrels per day.

Both propane and natural gas fall into the same supply/demand situation. Both products will come out of this winter with historically high inventories on hand, moving into summer when stocks always build in preparation for the next heating season.

Currently, propane inventories in the U.S. are nearly 50 percent higher than last year and nearly 25 percent above the five-year average, while natural gas inventories are 45 percent higher than last year and 35 percent above the five-year average.

Demand for both products has been weakened by the warm winter. Natural gas likely will get some support this summer, being used to power plants making electricity for the cooling season, while propane’s demand will come from exports and the petrochemical industry.

With this in mind, both

propane and natural gas will need outside factors to rally in price before next winter.

Certainly world economies, political concerns, and hurricanes in the Gulf all have the ability to push markets for both products higher.

Propane marketers and consumers have more reason than ever to keep a watchful

eye on the natural gas market.

What to do? Keep in touch with your local FS propane salesman who can help you take advantage of the current market situation.

Randy Miller is GROWMARK’s propane operations manager. His e-mail address is rmiller@growmark.com.

Milk price dips significantly The Class III price for milk adjusted to 3.5 percent butterfat for the month of February was $16.06 per hundredweight. This was a 99-cent drop from the previous month.

One of the mildest winters on record has kept cows milking very well. This, coupled with a cow’s natural ability to increase production into the spring, has increased supply.

Dairy farmers know this phenomenon as the “spring flush,” which seems to be coming on a little early this year. The higher milk production has placed some pressure on milk prices, and some producers are now seeing milk checks at below break-even prices.

Page 15 Monday, March 5, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST Bean supplies still adequate Despite this winter’s weather problems in South America, the fundamental structure of the world soybean market is still far from being too tight. At the end of the 2008/2009 crop year, soybean stocks were 42.7 million metric tons (mmt), with a stockto-use ratio of 19 percent.

This year, the ending stocks should be near 57 mmt to 58 mmt, with a stocks/use ratio at 22 to 22.5 percent.

The reason the reduction in the South American crop has not had a bigger impact is because of the exceptionally large crops there last spring.

They were still exporting significant quantities of that crop well into the current calendar year.

That blunted demand for crops grown last summer, ours in particular.

One of the big issues making the soybean market different from other grains is the huge increase in South American output. Last year, approximately 50 percent of the world output was produced in South America.

Because of that, a significant quantity of new supplies become available to the world every six months. And the supply of South American soybeans in a good year is about 50 percent larger than the crop we produce.

Traditionally, they have always been an aggressive exporter once new-crop supplies become available. But that’s not a lot different than any other country, especially ones that don’t have the storage infrastructure that we have in the U.S. or Europe.

Their export programs tend to peak in May/June, before tapering off into our fall. Last year was an exception, with Brazil still exporting significant

quantities into 2012 — 1 mmt in January and another 1.57 mmt in February.

Many Brazilian farmers already have sold 55 percent of their new crop. Sales are even heavier in northern states where harvest is more advanced. And harvest is generally a little ahead, allowing supplies to enter the world pipeline a little sooner than normal.

In recent years, by March they were shipping 2 mmt to 3 mmt per month, growing to 4 mmt to 5 mmt by May. Argentina’s exports start about a month later because of the later harvest. And Argentina is a bigger shipper of product than whole soybeans. Two years ago, April/May shipments exceeded 2 mmt per month, but 1 mmt is a more traditional pace.

This year’s smaller crops will cut into their monthly shipments, but not enough to significantly boost our old-crop shipments. But unlike this last year when they were still shipping big numbers well into winter, their shipments will tail off sharply by summer’s end. That will bolster export demand for our soybeans this coming fall.

But a return to a strong export program at the beginning of our new-crop year won’t necessarily bring high prices. By then, the supply/demand landscape could look different depending on the size of our new crop and the health of the world economies.

If the current rally pulls more land into soybeans this spring, we could still end up with a crop more than large enough to meet good fall/winter exports, as well as the smaller ones we now experience in spring/summer.

And by year’s end, potential output in South America will once again become a part of the equation, impacting the aggressiveness, or lack thereof, with which buyers fill their needs.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

Cents per bu.

ü2011 crop: A close under $6.50 on May futures would be the first sign the minor trend is turning down. Until then, a test of the $6.70-$6.83 region is still possible. Make catch-up sales any time May is above $6.50. Price another 10 percent if May futures close below $6.40. ü2012 crop: Use rallies above $5.65 on December futures to make catch-up sales.

We could add another sale at any time; check the Hotline daily. vFundamentals: The corn market either rides the coattails of soybeans or wheat higher.

Old-crop fundamentals are neutral, but prospects for large plantings in 2012 are making the whole complex somewhat defensive. And current weather/soil conditions tend to suggest planting could get off to a fast start this year. The 2012 crop insurance guarantees still encourage farmers to plant corn vs. other crops. Talk in financial circles also hints of a possible short-term turn up in the dollar again, another feature that will work against corn prices.

Soybean Strategy

ü2011 crop: Soybean prices have come to a critical juncture.

South American news appears to have become emotionally exhausted. That leaves further strength tied to unexpected demand or problems with our new crop. ü2012 crop: Use rallies to make catch-up sales. If it wasn’t so early, we’d be willing to sell more at these prices. vFundamentals: Argentine weather may have been good enough in recent weeks to boost potential for its crop slightly. Last week’s rains in southern Brazil, albeit too late to improve prospects, should have stabilized conditions enough to keep their output in the 68 million to 70 million metric ton range. Chinese demand has perked up after a long slumber, but they, like us, are entering a time when demand seasonally softens.

Crush margins have improved and port stocks have started to decline. But much of the Chi-

nese buying has been for the new-crop year.

Wheat Strategy

ü2011 crop: After establishing a short-term high, the market could be turning down again, but Chicago May needs to close below $6.53 to confirm. If that happens, it could test $6.28. Use current levels to make catch-up sales. The carry in futures still pays for commercial storage, making spring hedge-to-arrive contracts the best tool, but don’t carry inventories beyond April. ü2012 crop: Use current price levels to make catch-up

sales. New-crop sales stand at 35 percent. vFundamentals: Chicago wheat prices have benefited from spillover support from Minneapolis wheat on worries about dry conditions in the Northern Plains. The snowstorms that recently crossed the region diminished anxiety somewhat. But moisture is still short. Conditions in the Southern Plains have turned warm, starting to bring the crop out of dormancy. Winds are drying the topsoils. The early break from dormancy makes the crop a little more vulnerable to damage.

FarmWeek Page 16 Monday, March 5, 2012

pERSpEcTIvES

USDA brand appears on imported products, too Once upon a time, anyone could declare his food product as organic.

Some products were very organic and some weren’t. As organic food became more popular, consumers wanted to be sure the food products they purchased were really, truly organic.

In response, state and federal agencies, in combination with private organizations, started to police which products were actually organic.

For example, products produced at our School of Agriculture’s Allison Organic Research Farm north of Macomb are certified organic by the Midwest Organic Services Association (MOSA), an organization approved by USDA to monitor and certify organic food.

This means the purple and gold popcorn produced on the Allison Farm can be sold as organic popcorn with MOSA certifying, backed by USDA, that the popcorn really is organic. This is stated on the popcorn’s label: “Certified Organic by MOSA.” Achieving the MOSA organic certification is not an easy process, but WILLIAM it is one that is worth it because conBAILEY sumers can trust that the product is really organic.

There are other groups that also certify a crop or food as being organic. According to the Iowa Department of Agriculture, more than a dozen state departments of agriculture and 51 private organizations are accredited by USDA as organic certifiers.

Without that certification, a product

Let’s require vehicles that use natural gas Editor: It is reported that we have enough natural gas for 100 years. Why not require the various auto manufacturers to produce CNG (compressed natural gas) for autos and trucks? Are our politicians really so dumb?

Letter policy Letters are limited to 300 words and must include a name and address.

FarmWeek reserves the right to reject any letter and will not publish political endorsements.

All letters are subject to editing, and only an original with a written signature and complete address

LEADER TALK: What is the most challenging issue facing agriculture today?

E d i t o r ’s n o t e : Members of the Illinois Farm Bureau GrassRoots Issue Teams (GRITs) were asked for their views on several questions. Their responses will appear periodically on the Perspectives page.

c a n’t b e s o l d a s o r g a n i c.

With the above in mind, I recently purchased a product that was clearly identified as being organic — and in this case, it had a large label that read “USDA Organic.”

People from USDA did not personally inspect the product, but USDA does inspect the private companies, such as MOSA, that do the inspection and certification.

The fact that the USDA organic label was on the product gave me confidence that product was actually organic. So I bought it.

What eventually caught my attention was the fact that this product, with the USDA Organic label

prominently displayed, was actually imported from Chile. I was surprised to see a USDA label on an imported product.

To me, a USDA label implies a U.S. product. Wrong. And USDA doesn’t see any harm in putting the USDA label on imported food — in essence putting those imports on the same footing as domestically produced products. USDA told me “USDA organic production can occur anywhere in the world and be represented as USDA Organic as long as products adhere to the standards.”

It appears that the USDA Organic label has become a brand, available for anyone in the world to purchase.

The moral, for me, is to keep reading labels to know where your food comes from.

And to read the small print on the label.

William Bailey is chairman of Western Illinois University’s School of Agriculture, Macomb. His e-mail address is WCBailey@wiu.edu.

LETTERS TO THE EDITOR

All the crude oil that we buy from foreign countries means our money is leaving our country. We should keep our money at home.

CNG vehicles would not require totally new engines. I see some larger trucks using liquid propane gas. Let’s stop kicking the can down the road!

HERBERT WODKTE, Loogootee will be accepted.

A daytime telephone number is required for verification, but will not be published.

Only one letter per writer will be accepted in a 60-day period.

Typed letters are preferred.

Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701

“ P u b l i c image of ag is mostly negative. We need to do a better job telling our stories.”

Kate Hagenbuch LaSalle County

Legislation limits powers of counties

Editor: “Safety focal point of Farm Bureau legislative priorities” (Feb. 20 FarmWeek) characterizes SB 3271 as a standard to protect public health and safety.

SB 3271 (which seeks to establish statewide standards for commercial wind energy projects) is an assault on local control of land use. It severely limits the rights of citizens and powers of counties.

The first glaring problem with the legislation as proposed is that the bill sets maximum setbacks from primary structures, roads, and property lines. One would expect that if safety is the “focal point” of the bill that the bill would set minimum setbacks.

“Keeping young people involved in agriculture, stopping the depopulating of the rural area, and drafting a farm program friendly to farmers and the urban population.”

Bob Pharis Logan County

The second problem is that notice of the public hearing would not be sent to adjoining landowners. In most counties with zoning, wind energy devices are a special use in a district. The law for special uses requires notice of the hearing to be sent to adjoining landowners.

Why does Farm Bureau support a policy that would limit public awareness of development or suppress public input?

Thirdly, SB 3271 would make the meteorological towers permitted uses, eliminating the requirement for a public hearing. Met towers are an extreme hazard to aerial applicators.

Please don’t mislead the public. The setbacks are designed for the preservation of the wind industry. While expertise may be lacking at the

local level, actual experience with turbines is not. Sixty counties in Illinois currently have regulations in place.

Some counties, including some of the first ones to permit the devices, are rewriting regulations.

Senator Frerichs and the Farm Bureau have made no mention of conducting health studies in areas where people are living inside the wind tower grid.

Perhaps they are unaware that there is evidence of negative impacts of health. I urge all public officials to insist that the rationale for setbacks be based on health and safety and not the viability of an industry.

JUDY CAMPBELL, Manville Editor’s note: Ms. Campbell currently serves on the Livingston County Board.

“Rebuilding rural areas, engaging the next generation in farming, and teaching farming life to people who live in the city.”

“Explaining what we do in agriculture to the general public. Regulations that adversely affect us are being formed and implemented because of this lack of information.”

Brad Zwilling Champaign County

Linus Nosbisch Effingham County