Technology investments seem to trump big-ticket item purchases for farmers this year. page 4
U.S. Agriculture Secretary Tom Vilsack urges farmers to support Trade Promotion Authority. page 5
Optimism strong for Cuban trade
AGRICULTURAL LEGISLATIVE DAY
Monday, March 9, 2015
BY JOANIE STIERS FarmWeek
Rallying support to end the 54-year Cuba embargo topped Thomas Marten’s agenda when he returned last week from a trade-charged visit to the island. “Call your elected officials and tell them we need to end the embargo,” the central Illinois corn and soybean farmer said. “We need to use the momentum Thomas Marten that we have and get this done this year. Let’s not get this derailed by another election year. Let’s move forward and not stay stuck in the past.” The optimism and enthusi-
Two sections Volume 43, No. 10
asm between Cuban and American officials proved apparent to Marten and the nearly 80 U.S. agriculturalists who visited the country last week. They represented the U.S. Agriculture Coalition for Cuba on its “Learning Journey to Cuba” March 1-4. The coalition describes the trip as the first major U.S. business delegation to Cuba since President Barack Obama in December announced plans to normalize relations with the nation. Marten of Waggoner served as Illinois Farm Bureau’s delegate on the trip. He previously visited Cuba in 2012 as part of the IFB Cuba Market Study Tour. “There is a definite change in the atmosphere,” Marten said. “There is more optimism
Ag adds $120.9 billion to Illinois’ economy BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
Agriculture remains a key economic engine for Illinois’ economy and crucial in some areas of the state, according to a recently released economic study.
Above, state Rep. Bob Pritchard, R-Hinckley, right, discusses ag issues with Illinois Farm Bureau Vice President David Erickson, center, and IFB Director Gar y Speckhart during Agricultural Legislative Day at the state Capitol last week. Left, New Berlin FFA Chapter members Carlie Schmidt and Logan Marr help fill hundreds of baskets with foods, products and information from Illinois ag groups. About 900 FFA members, advisers and adult supporters from across the state assembled and delivered the baskets and lunches to state lawmakers and statewide elected officials. (Photos by Ken Kashian)
See Cuba, page 2
Overall, agriculture and agriculture-related industries accounted for $120.9 billion, nearly 10 percent, of the state’s total output, according to the study. Statewide, agriculture and ag industries provided about one out of every 17 jobs in 2012. Conducted by the economic research firm Decision Innovation Solutions of Urbandale, Iowa, the study was commissioned by the Illinois Livestock Development Group with cooperation from the Illinois Farm Bureau, the Illinois Corn Marketing Board and the Illinois Soybean Association. “Agriculture contributes more than $120 billion to the state’s economy, despite having one of the largest metropolitan See Economy, page 2
Put away your ice scraper! Climatologist Jim Angel says spring’s on its way and will stay. page 10
Ag leaders, FFA converge on Capitol BY KAY SHIPMAN FarmWeek
An agricultural sea swept the Capitol last week, seeking support from state officials and lawmakers for ag issues on Agriculture Legislative Day. State and county Farm Bureau leaders joined representatives of agriculture, commodity and agribusiness organizations. About 900 FFA members, advisers and supporters swathed
Capitol hallways, legislative chambers and offices in blue corduroy jackets. Snow caused several schools to cancel their FFA’ers’ trip or attendance would have climbed to 1,000. The four legislative leaders of the Senate and House Agriculture and Conservation Committees addressed assembled ag leaders. Each stressed the bipartisan nature of their respective committees and their desire to support the state’s ag industry. www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, March 9, 2015
CROP INSURANCE TOOLS AVAILABLE — Farmers have until March 15 to make 2015 crop insurance decisions. The University of Illinois’ farmdoc iFarm tools can help you determine the best coverage for your farm. The web-based tools include a crop insurance premium calculator, a decision tool and payment simulator. Visit {farmdoc.illinois.edu} and click on Crop Insurance.
ILLINOIS TEACHER NABS AITC SCHOLARSHIP — Robin Halicki, a teacher at Mary Lou Cowlishaw Elementary School in Naperville has earned a $1,500 American Farm Bureau Foundation for Agriculture scholarship to attend the National Agriculture in the Classroom (AITC) Conference in Louisville, Ky., June 16-20. Halicki joined nine other educators recognized for their exceptional efforts to encourage agricultural literacy. Recipients were judged on past use of innovative programs to educate students about agriculture as well as future plans to implement information gained at the AITC conference in their own lesson plans and share the information with other teachers and volunteer educators.
NEW ISPFMRA PRESIDENT ELECTED — Randal S. Fransen, AFM, farm manager and vice president of First National Bank of Dwight, was recently elected president of the Illinois Society of Professional Farm Managers & Rural Appraisers (ISPFMRA). The Illinois Society, with nearly 350 members, comprises one of 37 statewide chapters of the American Society of Farm Managers & Rural Appraisers. ISPFMRA will host its 20th Annual Land Values & Lease Trends Seminar March 19 at the Doubletree Hotel in Bloomington. For more information, visit {ispfmra.org}. TURKEY GROWERS SET MEETING — The Illinois State Turkey Growers Association annual meeting will get under way at 4 p.m. Thursday at Alexander’s Steakhouse in Peoria. Topics will include a commodity outlook and turkey nutrition. Members will conduct their business meeting following dinner. Registration costs $20. For more information, call 815-438-2580.
HONE YOUR MARKETING SKILLS — Illinois Farm Bureau members have until Sunday to sign up for the 2015 Commodity Challenge. Participants compete for prizes and sharpen their marketing skills by trading commodities via the free, online marketing simulation. Winners in each of four categories — overall, women, Young Leaders and collegiate — will receive $1,500, while second place receives $750 followed by $250 for third place. To sign up, visit {www.ilfb.org/marketing/commoditychal lenge}.
(ISSN0197-6680) Vol. 43 No. 10 March 9, 2015 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.
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. © 2015 Illinois Agricultural Association
STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso (morso@ilfb.org) Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353
Most farms, producers finish farm bill sign-up process BY JOANIE STIERS FarmWeek
A majority of Illinois’ farms and producers have completed the documentation necessary to meet both farm bill sign-up deadlines this month, according to the Illinois Farm Service Agency (FSA). The 2014 farm bill allows an opportunity to update base acres and yield history, and elect safety net programs, which include Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC). USDA extended the deadline to retain or reallocate base acres and update yields to March 31 — the same deadline to elect ARC or PLC. Current landowners must sign a document to update base acres and yield. Current producers make program elections. “We have the largest number of farms in the nation and largest list of producers in the nation,” said Rick Graden, executive officer of the Illinois FSA Office. “We are not leading the pack on this sign-up process, but we’re near the front of the pack. We still have some progress we need to make, but we feel good with where we are.” Illinois contains more than 150,000 farms and more than
75,000 producers, Graden said. He indicated that some producers may choose not to enroll at all. If no changes are made to yield history or base acres by March 31, the farm maintains its current yield and base, according to USDA. Farms on which producers fail to make a program election will default to PLC for the length of the farm bill. Any 2014 payments would be forfeited. Farm bill presentations have tapered off throughout the state for Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management. The meetings he conducts this month focus on how to use analysis tools available from the University of Illinois and Texas
A&M University. He also shares 2014 payment predictions for ARC-County (CO), a popular choice among farmers. The February release of county yield data from the National Agricultural Statistics Service offers a more precise estimate for half the equation to determine ARC-CO payments before program elections end March 31. Graden expressed confidence in FSA’s ability to enroll the remaining interested landowners and producers who have yet to make decisions. More than 90 temporary employees were hired for the sign-up process. “We are the ‘can-do’ agency,” he said. “Rest assured that we have dedicated employees in Illinois who will do what they have to do to get the job done.”
Continued from page 1 in the air and more openness in discussion from both parties. They are optimistic about the change in relations. They are expecting to see growth and improvement in their standard of living and the ability to export some of their cigars, sugar and possibly fish, as well as the ability to import goods and bring in new technologies.” On the 2012 trip, U.S. and Cuban restrictions limited the visit mostly to the city of
Havana. This time, the group traveled two hours outside Havana, passing plots of rice, sugar cane, bananas, sorghum and even a few cornfields, before touring a tobacco farm. With a lifted embargo, Marten sees opportunities for exports of American corn and soybeans to Cuba, primarily as feed for livestock and aquaculture. Rice stands to gain, too, as the U.S. offers a higher quality product closer to home, he said. Access to Cuban citrus fruits,
which ripen ahead of U.S. crops, could extend and complement our nation’s domestic citrus season, he added. Meanwhile, opening Cuba to modern technology could greatly benefit the nation’s antiquated production methods powered primarily by oxen. “I think there is very little in American agriculture that won’t benefit from increased trade in Cuba,” Marten said. “I think there is a lot of opportunity for two-way trade.”
Continued from page 1 areas within our state borders,” said Mike Doherty, IFB senior economist and policy analyst. The study analyzes the economic impact of grain farming, primarily corn, soybeans and wheat; livestock production, including processing; and other agriculture, including farm equipment manufacturing, veterinary services and support activities for agriculture. Of those categories, grain farming contributed $56.7 billion; other agriculture, $50.1 billion; and livestock production, $14.1 billion, according to Spencer Parkinson, executive director of Decision Innovation Solutions. Parkinson discussed the study at the recent IFB Governmental Affairs Leadership Conference (GALC).
“When you’re talking (Illinois) agriculture, there’s a lot more to it than producing commodities,” Parkinson told FarmWeek.
However, those actions “can stunt agriculture’s growth” and cause unintended consequences, he continued. At county and even regional levels, agriculture’s economic importance becomes more apparent. In 24 counties, agriculture and ag-related industries contribute at least onethird of the economic output. In 12 counties, agriculture and ag-related industries account for at least one-fifth of the jobs. Doherty envisioned county leaders using the county-level data for strategic planning purposes. To download the entire Illinois study, visit {decision-innovation.com/economicimpact/} and scroll down to “Case Study–Illinois Agriculture Economic Contribution.”
Cuba
Economy
FarmWeekNow.com
Visit FarmWeekNow.com to view a video interview with one of the study’s authors, Spence Parkinson.
Parkinson said the economic analyses — assessed by individual counties as well as congressional districts — provides important data to share with lawmakers and other policy decision makers. “Illinois has a thriving agriculture industry, so some might think adding a little tax here or removing exemptions that agriculture is enjoying (won’t be harmful),” Parkinson said.
Illinois’ ample local governments in spotlight
Page 3 • Monday, March 9, 2015 • FarmWeek
BY KAY SHIPMAN FarmWeek
Illinois ranks No. 1 for the most units of local government — a recent target to reduce costs and improve efficiency. In his State of the State address, Gov. Bruce Rauner called DuPage County “a role model for us all” due to the county’s efforts to consolidate local government. Rauner also proposed cutting $600 million in local government funds in the state budget. Will County Executive Director Larry Walsh told FarmWeek his county would lose Larry Walsh $5.2 million under the governor’s proposed budget cut. In an executive order issued Feb.
13, the governor created a task force on local government consolidation and unfunded mandates. Lt. Gov. Evelyn Sanguinetti will chair the task force, which is to report its recommendations by Dec. 31. The members, who will be appointed by the governor, are assigned to review existing state laws, identify opportunities and obstacles, and analyze similar programs in other states. Despite Illinois’ dubious No. 1 local government ranking, Taxpayer Federation of Illinois President Carol Portman posed a philosophical quesCarol Portman tion: “Is it in a good way or a bad way?” During the recent Governmental Affairs Leadership Conference,
Portman presented positives and negatives of plentiful local governments. On the plus side, local governments can change faster than state or national governments and be more responsive to residents’ needs. In addition, local governments and their leaders “know you — they’re right there,” Portman added. On the negative side, local governments may be inefficient, duplicate services and lack economy-ofscale cost savings, she noted. Recent efforts to eliminate and/or consolidate local government units required action by the General Assembly to address specific cases, Portman explained. A 2014 state commission report on consolidation of local government found: • “Simply reducing the number of local government units does not
Kraft feels consumers’ hunger for information about food
The nation’s fourth largest food and beverage corporation and farmers field similar food questions from consumers and both try to educate people about food sources, according to a Northfield-based Kraft Foods Group executive. “The public is not as aware of our industry — from farmers to food processors to food retailers — as we would like them to be. That’s why I Derek Crawford like Farm Bureau programs that get your representatives and farmers out talking with people, all people, about food,” said Derek Crawford, Kraft Foods’ director of U.S. government affairs. Crawford discussed farm-agribusiness relationships at the recent Governmental Affairs Leadership Conference. Consumers question Kraft representatives, just as they do
farmers, about what is in their food, Crawford said. Such questions highlight the importance of the relationship between Kraft and the Illinois Farm Bureau. “We’re all in this together. We buy commodities that farmers produce,” Crawford said. “We need to better understand each other’s positions.” He noted he regularly contacts Ryan Tracy, IFB director of external relations. The IFB-Kraft relationship grew from a visit between IFB directors and Kraft executives, which led to a dairy farm tour for Kraft employees, primarily from corporate affairs and communications. Crawford said, “To this day, many of my colleagues say (that tour) was one of the best external work interactions and something that they would consider doing again.” He encouraged farmers “to continue to open your farming operations to people who should know more about food … It’s important for people who work in corporate set-
tings within the food industry to see how farms operate.” Crawford said he hopes Kraft corporate employees are able to visit farms during planting and again during harvest in the near future. In addition to learning more about food production themselves, Kraft executives also find themselves listening to consumers’ questions and trying to understand underlying concerns, Crawford explained. “We are listening more versus saying, ‘We know best,’” Crawford summarized.
Illinois Farm Bureau will host a webinar at 8 a.m. Thursday regarding a statewide strategy to reduce levels of nitrogen and phosphorous in Illinois rivers, lakes and streams. The Nutrient Loss Reduction Strategy offers a suite of practices and programs to reduce nutrient losses in urban and rural areas from point sources that include specific sources, such as sewage treat-
ment plants, and nonpoint sources that are diffuse, such as runoff from farm fields, and residential and urban areas. The webinar will feature Lauren Lurkins, IFB director of natural and environmental resources. All Farm Bureau members are encouraged to register in advance at {https://ilfb.webex.com/ilfb/ onstage/g.php?d=666548721& t=a}.
Farmers can choose between Price Loss Coverage (PLC) or Agricultural Risk Coverage (ARC) at the county or individual level through the end of March. In addition to speaking at informational meetings across the state, Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, answers FarmWeek reader questions. This week’s question: Q: Should owners who
BY KAY SHIPMAN FarmWeek
IFB to host NLRS webinar
Kraft morsels
Tidbits about Kraft Foods Group: • 20,000 North American employees • $18 billion net revenue • Five main Illinois locations • Champaign facility one of Kraft’s largest in the world
necessarily result in a reduction of costs to the taxpayers;” • “Cooperation and consolidation must be approached on a case-bycase basis, as different local units of government have different needs;” and • “When the goal is improving the efficiency of service while maintaining service quality and controlling costs, cooperation proves much more successful than efforts focused on reducing the number of local governments in an area.” Asked for a list of local governments, Portman suggested individuals may find a master list of local governments that collect property taxes within the comptroller’s office. She also noted the U.S. Census Bureau collects information about local governments and its database may be searched by county.
State to collect irrigation, high capacity well water use
BY KAY SHIPMAN FarmWeek
Agricultural irrigators and other users of high capacity wells begin reporting water inventories this year. Last week, the Illinois State Water Survey (ISWS) finalized and posted online a handbook and methods to calculate water use at {www.sws.uiuc.edu/gws/iwip/irrigation/} Steven Wilson, an ISWS groundwater hydrologist, discussed the state law and how irrigators can comply during the recent Governmental Affairs Leadership Conference. Under the law, irrigators can estimate their water withdrawals using a method approved by the ISWS if the farmers don’t meter water withdrawals. “The law says you can estimate if you don’t have a flow meter,” Wilson told farmers. “We are trying to make this as simple as possible, and you can estimate flow.” The state law was amended in 2010 with Steven Wilson the mandatory reporting provision that takes effect this year. Illinois Farm Bureau has been working with the ISWS over the last year as the survey has been developing its program for agricultural irrigator reporting, said Lauren Lurkins, IFB director of natural and environmental resources. Lurkins encouraged irrigators to review ISWS’ new handbook online. County Farm Bureau managers will receive additional information about the reporting requirements over the next couple of weeks. “If you have questions about reporting in your area, please contact your county Farm Bureau manager,” Lurkins said.
Farm bill: Your questions answered rent out their land to tenant/operators work closely with and obtain the tenant/operator’s opinions about the various options? A: Yes. Even if the landowner has executed a Power of Attorney allowing the decision to be made by someone else, such as a tenant, the landowner should discuss the options and elections. These choices stick with the land for at least the five-year life of the
farm bill and could potentially impact the future value of the land. If landowners try to find new renters in the future, or sell the ground in the future, the new renter and/or owner cannot change these decisions after the deadline. They will get the options chosen now. If they don’t like what is chosen, it may influence what they’re willing to pay or rent the land for.
Big farm equipment sales down
Farmers seek technology to improve efficiency
FarmWeek • Page 4 • Monday, March 9, 2015
BY DANIEL GRANT FarmWeek
Tighter margins force farmers to cut back purchases of big-ticket items such as combines and four-wheel-drive tractors. But farmers continue to seek technological investment opportunities that can improve efficiency on their farms, based on feedback at the 20th annual Commodity Classic in Phoenix. The event featured a record number of exhibitors (355) and a record crowd (about 7,600). “In years past, if you saw a problem in a field, you wrote it on a notepad and addressed it in the winter,” said Patrick Hurt, research director for Security Seed and Chemical in Clarksville, Tenn.
“With the technology coming down (the pipeline), I believe we’ll be able to fix (crop issues) in season.” A great deal of technology launched or highlighted at Commodity Classic focuses on precision agriculture or the use of data to improve efficiency or output. Becky McCrea of Growers Edge promoted a new smart phone app, GrainLogs, which helps farmers manage stored grain inventories. “You can customize it to your farm and generate a report,” McCrea said. Mike Martinez of Trimble discussed the Connected Farm tool, an information collaboration platform designed to help farmers and crop advisors easily visualize data on their farms each season.
“It takes all the data and easily visualizes it for you, so timely decisions can be made in season” Martinez said. Precision ag products at the trade show included the Hawkeye nozzle control system from Raven Industries that maintains even pressure on all spray nozzles to ensure accurate droplet sizes and application rates, and reduces spray drift from booms. Michelin promoted its new Ultraflex tires to farmers. The tires require lower air pressure and allow farmers to carry heavier loads with reduced soil compaction. “With commodity prices the way they are, precision ag is a great way to
FARMERS SUPPORT TPA AT COMMODITY CLASSIC
Donna Jeschke, right, a Mazon farmer, signs a letter urging Congress to pass Trade Promotion Authority. Roger Sy, a Newman farmer, mans the National Corn Growers Association booth at the Commodity Classic in Phoenix. The event drew a record crowd and record number of exhibitors. (Photo by Daniel Grant)
Lending Support to Generations of Farm Families
invest to get more efficiency and profitability,” said Ryan Molitor of Raven Industries. Farmer investments in ag machinery remain good for small tractors, but large tractor and combine sales sputtered in the past year. The Association of Equipment Manufacturers January sales report shows purchases of 40 to 100 horsepower tractors actually increased 12.1 percent compared to last year. But sales plummeted 5.6 percent for 100-plus horsepower tractors, 64.4 percent for four-wheel-drive tractors and 47.1 percent for combines compared to the previous year.
Agronomist: Don’t make your farm a ‘data island’
A “data island” sounds like a great place for a mathematician or an economist to vacation. But it’s actually the last place farmers should create on their operations as they deal with the influx of information (big data) generated on their farms. John McGuire, agronomist with Simplified Technology Services, advises farmers to instead pick partners they trust in the technology industry and build long-term relationships to harvest big data, and improve the efficiency and output on their farms. “The ability to collect data is accelerating,” McGuire said recently at the Commodity Classic. “Every time you go across a field you’re collecting information (through various sensors, monitors, global positioning systems, etc ... ).” And that information continues to be more valuable as farmers and agribusinesses can use it to make better agronomic decisions. “The future of ag will be made from precision ag-collected data,” McGuire said. “The question is, how do you determine what to do and how to control what’s in the cloud.” The agronomist believes when it comes to data management farmers can either get in line and not worry about it; cut the cord and create a “data island” on their farm; or trust but verify by building long-term relationships with technology partners. “You can cut the cord and create a data island. There are opt-out policies (in precision ag sales agreements),” McGuire said. “But I don’t think that’s smart. “How valuable is the information you collect,” he continued. “Don’t let the opportunity (to improve productivity and efficiency) get by. The crop cycle (and ability to collect information on each crop) only occurs once a year.” McGuire also advised against taking the opposite approach and allowing a carefree flow of information from a farm without discretion. Farmers instead should research technology providers, ag retailers, input suppliers and others, and choose trustworthy partners to collect, analyze and develop recommendations from all the farm data. “Trust, but verify,” McGuire said. “You’ve got to become the gatekeeper of your information and know when the gate is open and who it’s closed to.” — Daniel Grant
Numerous U.S. presidents boast ag ties
800.444.FARM (3276)
farmcreditIL.com
Several men elected to lead our nation started, and some returned, to their agricultural roots. Farmer founding-father presidents included George Washington, John Adams, Thomas Jefferson and James Monroe. They were followed by William Henry Harrison, James Tyler, Abraham Lincoln and Ulysses Grant. Modern era far mer/rancher presidents included Harry Truman, Lyndon Johnson and Jimmy Carter. Those presidents with ties to far ming and ranching included Theodore Roosevelt, Ronald Reagan, Bill Clinton and George W. Bush.
Vilsack, Vetter: TPA key to enhance trade opportunities
Page 5 • Monday, March 9, 2015 • FarmWeek
BY DANIEL GRANT FarmWeek
Ag Secretary Tom Vilsack and Darci Vetter, chief ag negotiator for the Office of the U.S. Trade Representative, recently urged farmers to support trade promotion efforts during a visit at the 20th annual Commodity Classic in Phoenix. Vilsack believes ag trade will be as critical as ever this year as farmers deal with larger crop stocks — pork and poultry production also could grow — and tighter margins. “Trade is extremely important to the future of agriculture,” Vilsack told a standing room only crowd of farmers
at the annual event hosted by the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers and National Sorghum Producers. “Farm income is stabilized and increased Tom Vilsack through exports,” he continued. “In many years, it represents net farm income.” U.S. ag exports last fiscal year reached a record $152.5 billion to cap a stretch from
2009 through 2014 that represents the six strongest years in the history of U.S. ag trade, according to the ag secretary. Vilsack and a bipartisan mix of former ag secretaries this month sent a letter to Congress urging the passage of Trade Promotion Authority (TPA) to help close negotiations of free trade agreements. The U.S. remains in the midst of free trade negotiations with Europe, via the Trans-Atlantic Trade and Investment Partnership, and 11 other countries through the Trans-Pacific Partnership (TPP).
“We have two-thirds of global GDP (gross domestic product) at the table (via the two tentative trade agreements),” Vetter said. But in order to close the deals, Vetter said TPA must be enacted to assure trade partners that Darci Vetter terms of the agreements won’t be altered by Congress. “There’s a huge opportunity for U.S. ag (via TPP),” Vetter said. “But unless that structure (TPA) is in place, I can’t get it
with traditional customers, such as Mexico, to find new demand.” USDA recently increased its corn export forecast for 2015-16 by 100 million bushels to 1.85 billion bushels. It also raised soybean exports to a record 1.82 billion bushels, while wheat exports also could expand by 75 million bushels. USGC also plans to increase promotion efforts for U.S. ethanol exports along with the co-product of ethanol production, distillers dried grains (DDGs). U.S. exports of DDGs set a record last year, Sleight noted, while ethanol exports increased 35 percent. Meat exports, on the other hand, could slip this year due in part to high prices and tight supplies for beef, and high prices and strong competition in the pork market. About 450,000 metric tons of pork from the European Union (EU) went to markets such as Japan and South Korea last year after Russia placed an embargo on EU pork. “Those are two of our top five markets for U.S. pork,” Hinners said. “As we move forward in 2015, we have our work cut out. We’ll work feverishJohn Hinners Jr. ly to regain market share.” A backlog of export shipments from U.S. West Coast
ports, which recently returned to normal activity after a labor dispute, won’t help, though. “It could be two-plus months to get back to normal (with shipments from the West Coast),” Hinners said. “What we’ve done is gone over to our Asian markets, met with some of our largest customers of U.S. beef and
pork and reassured them of our commitment to their business.” USDA recently forecast meat exports this year could decline 4.8 percent for beef and .8 of a percent for pork. Exports contribute about $60 per market hog and $300 per head for fed beef cattle in the U.S., Hinners, added.
Dynamics shift in ag export market
Corn sales climb; beef, pork shipments could soften
BY DANIEL GRANT FarmWeek
The decline of crop prices the past year could have a significant impact on farm margins. But on the bright side, ample supplies and lowerpriced corn and corn products could drive a rebound in export sales, according to Tom Sleight, president and CEO of the U.S. Grains Council (USGC). Sleight and John Hinners Jr., assistant vice president of industry relations for the U.S. Meat Export Federation, discussed the outlook for U.S. ag exports at the 20th annual Commodity Classic in Phoenix. “Farmers would like to see higher (corn) prices, of course,” Sleight told FarmWeek. “But we’ve got a very competitively priced product overseas right now. We’re seeing Tom Sleight customers respond to that.” The U.S. market share of corn sales in Japan recently reached 95 percent after falling to less than 30 percent during the 2012 drought year that sapped domestic supplies and pushed corn prices to new highs. “Asia and the Middle East have come back strong (as buyers of U.S. grain),” Sleight said. “We’ll continue to ramp up (promotion) efforts there. We’re also doing more work
Culver’s donating to FFA
Watch a video and help fund FFA programs. Culver’s launched a video called, Thank You Farmers. For every view, the restaurant company known for its Butter Burgers and frozen custard will donate $1 to National FFA. “Culver’s wouldn’t be what it is today without our nation’s family farms,” the company noted. To watch the video, visit {http://bit.ly/1GcxtLl}.
across the finish line.” Vilsack and Vetter urge farmers to actively support the trade agreements and the passage of TPA to boost ag export opportunities. “We need folks to get involved, take action and let people know why trade is so valuable to your bottom line,” Vetter said. TPA would assure trade partners that Congress would decide on trade agreements with an up or down vote. It, however, does not exclude Congress from participating in the negotiations, Vilsack noted. “Every member of Congress has the right to read the negotiating text as it develops,” he said. “You can’t get more transparent than that.” The U.S., through trade negotiations, not only hopes to lower trade tariffs, but also streamline the biotech approval process through science-based regulations. The U.S. currently must pay an average tariff of 30 percent to ship ag products to Europe, but charges an average tariff of only 12 percent for incoming goods, Vetter added.
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EPA receives 900-plus NLRS comments
FarmWeek • Page 6 • Monday, March 9, 2015
reduction than they can really afford to do might pay a farmer to do conservation practices An Illinois EPA official said Illinois farmers that reduce phosphorus.” and others submitted nearly 1,000 public comWillhite said some public comments on the ments regarding the state’s Nutrient Loss draft NLRS suggested that better urban-rural Reduction Strategy (NLRS). The draft plan attempts to meet federal gov- partnerships for getting cost-effective pollution reductions into place could be ernment regulations requiring the achieved. state to reduce urban and rural FarmWeekNow.com “That might be something we pollution into streams, lakes and Listen to IEPA’s Marcia Willhite’s comments on nutrient loss strate- want to talk about more,” said rivers. Willhite said IEPA hopes gies at FarmWeekNow.com. Willhite. “We have presently over to have the NLRS finalized by 400 million pounds of nitrate the end of this month. that we lose from the state, and 82 While about 80 or so Illinois farmers submitted letters in support of NLRS, Marcia Willhite, percent of that comes from agriculture. So, we’re looking at a need for implementation of chief of the Illinois EPA’s Bureau of Water, conservation practices pretty much on every said the agency received “hundreds of comfarmed acre in our state.” ment letters from Sierra Club members” that However, Willhite told farmers, “It’s not all requested measurement standards for pollution about you.” She noted Chicago and suburban reduction. “We didn’t hear much about the idea on what waste water treatment plants release a significant amount of nitrogen and phosphorus into is called ‘trading’,” said Willlhite, following her streams, lakes and rivers, and will also be presentation to a recent Illinois Farm Bureau required to contribute to the pollution control conference in Springfield. “For example, a municipality that needs to get more phosphorus effort.
BY MIKE ORSO
Conservation easement program comment period open
USDA wants to hear your comments about an interim final rule for the new Agricultural Conservation Easement Program (ACEP). The 2014 farm bill consolidated three previous conservation easement programs into ACEP to make it easier for agricultural landowners to fully benefit from conservation initiatives. USDA’s Natural Resources
Conservation Service (NRCS) administers ACEP, a voluntary program created in the 2014 farm bill to protect and restore critical wetlands on private and tribal lands through the wetland reserve easement component. The official notice of the proposed ACEP interim final rule can be found at {http://1. usa.gov/1ABC09C}. Electronic comments must be submitted
by April 28 at {regulations.gov}. Comments also can be mailed to Public Comments Processing, Attn: Docket No. NRCS2014-0011, Regulatory and Agency Policy Team, Strategic Planning and Accountability, U.S. Department of Agriculture, Natural Resources Conservation Service, 5601 Sunnyside Avenue, Building 1-1112D, Beltsville, MD 20705.
Reaching maximum capacity? Let’s talk.
Can smartphones, bar codes solve GM food labeling debate? BY DANIEL GRANT FarmWeek
Ag Secretary Tom Vilsack knows some U.S. consumers want to know if their food contains any genetically modified (GM) products, while it’s not an issue for others. But he’s not sold on the idea of slapping labels on food products in an attempt to satisfy both sides. Vilsack discussed the issue recently at the 20th annual Commodity Classic and at the USDA Ag Outlook Forum. “There’s two main reasons to put a label on a product — to relay nutritional value and if there’s a risk associated with taking the product (such as a known food allergy),” Vilsack said. Neither of those reasons come into play with GM food labeling, he continued. “There is no risk consuming a GM product.” But consumers might not understand that if USDA begins separating GM from non-GM food through labels. “Consumers have a right to know (food ingredient information),” Vilsack said. “But we don’t want to create a misconception.” Vilsack, at both events, suggested the debate about GM food labeling could be solved by combining two existing technologies — smartphones and bar codes. Food production information can be included in bar codes, so consumers could scan the bar code of any product with their smartphone to find out if it contains ingredients from GM or non-GM crops. “You can find out everything you want to know about the product (by scanning the bar code),” Vilsack said. However, some commodity group leaders would like USDA to go a step further to calm the controversial issue. The American Soybean Association (ASA) and National Corn Growers Association (NCGA) at Commodity Classic called on USDA to develop a standardized label for non-GM products. “Current state (labeling) initiatives are widely variant, and you end up with a bunch of labels on the shelf,” Wade Cowan, ASA president, said at the 20th annual Commodity Classic in Phoenix. “The most efficient way is to have a USDA-certified, non-GM label.” ASA leaders say a USDA label could provide consumers information some want about food products and allow the market to dictate price levels of GM versus non-GM products. Chris Novak, NCGA CEO, also wants to end state-by-state food labeling efforts by establishing a national label. “We’re working with other groups,” he said. “We’d like to see one set of labeling standards.” The farm groups, however, emphasized that any non-GM related food labels would have to allow for the presence of lowlevel amounts of biotech traits or the policy won’t work.
Grain, hog surveys mailed to farmers
If you grow grain and/or raise hogs, check your mailbox in the near future for surveys from the National Agricultural Statistics Service (NASS). About 82,000 farmers nationwide will receive a survey about planting intentions and amount of on-farm storage. A similar number of pork producers will be asked about market hog and breeding stock inventories as well as farrowing intentions. Information provided by respondents is confidential as required by federal law. NASS safeguards the privacy of all
responses and publishes only aggregate data, ensuring that no individual operation or producer can be identified. Surveyed farmers can respond via the Internet or by mail. Those who do not respond by the deadline will be contacted for a telephone or personal interview. Survey results will appear in the prospective plantings report and quarterly grain stocks report March 31, and in the quarterly hogs and pigs report March 27. Reports will be available online at {www. nass.usda.gov}.
Beef cow, calf meeting slated March 25
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Cattlemen and others interested in cattle production will receive research-based information from 5 to 8 p.m. March 25 at Monroe County Annex, Waterloo. The preregistration deadline to guarantee a meal is March 20. The University of Illinois Extension and Monroe County Cattlemen’s Association are sponsoring the event. Travis Meteer and Teresa Steckler, U of I Extension commercial agriculture educators, will give an overview of cattle handling facilities to confine cattle safely and efficiently for close observation, and routine health and management procedures. In addition, Meteer will explain how cow body condition scores impact profitability, while Steckler will discuss herd health issues. The cost is $5 and payable at the door. For more information or to register, call the Monroe County Extension Office at 618939-3434. Late or on-site registrants are not guaranteed a meal.
Chipotle CFO claims no fear intended
Chipotle Mexican Grill’s chief financial officer (CFO) defended the company’s portrayal of most U.S. agriculture as a monolithic, industrial machine following a recent address to business students at Illinois State University in Normal. Jack Hartung’s keynote address during ISU’s annual Business Week featured two of the company’s animated cartoons, including its controversial “Scarecrow” video. Both have been praised for their creativity, but also ridiculed as savvy, yet dishonest and manipulative ways to make a multibillion dollar corporation stand out from competing restaurants. The marketing strategy continued last year when the company created a four-part, Internet-based video series entitled, “Farmed and Dangerous.” “It’s not intended to do fear, it is intended to create a contrast,” said Hartung in an interview after his ISU speech. “They’re done in an animated form, they’re done in a satire form because we want to entertain, but at the same time, we want people to think.” Chipotle wants people to think its burritos, tacos and other menu items are somehow better than other restaurants’ because they contain ingredients raised using what the company calls “sustainable” practices. “We want to partner with farmers that can raise animals to our protocols,” said Hartung. “We don’t intend to insult anybody.” Ryan Tracy, Illinois Farm Bureau director of external BY MIKE ORSO
relations, said IFB would like to partner with Chipotle, too — at least to discuss the facts about today’s agriculture. But Tracy said Chipotle won’t return his phone calls. “I would think that they would like to talk to farming organizations to find out more information on the sustainable practices our farmers are using,” said Tracy. “It appears Chipotle instead chooses to try to market itself as ‘food with integrity,’ but falls far short of the definition.” A staff member for the U.S. Farmers & Ranchers Alliance (USFRA) said the organization has invited Chipotle — without luck — to participate in two of its several Food Dialogues panel discussions. IFB is an affiliate of USFRA. Hartung, who worked 18 years for McDonald’s, estimates the value of Chipotle’s approximately 1,800 stores at $12 million each. He told attendees that a franchise for his previous employer is worth about $2.5 million. Chipotle owns all of its stores. In addition, Chipotle has launched Southeast Asian Shophouse and Pizzeria Locale, two new “fast-casual” food chains. “What I feel is happening with millennials, the younger generation, with social media, with the way information travels, there has been this wave of little bits of information about food,” said Hartung. “It might be about fast food or it might be something about GMOs. That information travels faster.” Still, Hartung acknowledged some of that fast-traveling information can be less than accurate.
IFB staffer elected to serve on national agritourism board
Diane Handley, Illinois Farm Bureau affiliate association manager, recently was elected to the new National Agritourism Professionals Association (NAPA) board of directors. NAPA members formally adopted bylaws and elected a 13-member board of directors from 12 states. The organization provides resources and support to help agritourism farms tackle regulatory and policy challenges. NAPA also provides a network resource for state, regional and national governmental Diane Handley agencies with agritourism professionals and service providers in the U.S. and Canada. The group works to develop collaborative education to promote best practices and marketing trends concerning agritourism. Individuals interested in working with the agritourism and direct farm market industries may join. For information, visit {napa-usandcanada.com}.
Page 7 • Monday, March 9, 2015 • FarmWeek
BUILDING FARMER-BUYER CONNECTIONS
John Pollaci, SunFarm Foodservice president, in blue shirt, talks with some of the 180 participants of a recent Meet the Buyer event at Saint Louis University. Illinois Farm Bureau teamed with Missouri Farm Bureau to provide an opportunity for food buyers to meet with farmers from both states interested in supplying local products to food companies. Other partners included the Illinois and Missouri Departments of Agriculture, University of Illinois and Missouri Extension Servi c e s a n d I l l i n o i s S p e c i a l t y G r o w e r s A s s o c i a t i o n . Wa t c h a v i d e o o f t h e e v e n t a t {FarmWeekNow.com}. (Photo by Jim Polus, IFB senior audio visual producer)
Federal advisory committee NRCS extends CSP sign-up deadline, recommends dietary changes offers expiring CSP contract renewal
FarmWeek • Page 8 • Monday, March 9, 2015
Consumers need to eat more vegetables, and less sugar and saturated fats, according to new recommendations from a dietary guideline advisory committee to the departments of Agriculture and Health and Human Services. The dietary report is updated every five years. The federal government will accept written comments on the recommendations through April 8. “Science must drive policy that feeds people all over the world, so we applaud the advisory board for its notable contributions to public health,” said Bob Stallman, American Farm Bureau Federation president. “We are, however, concerned the report’s lengthy foray into sustainability issues goes well beyond both the group’s expertise and its clearly defined mission. Its conclusions would have benefitted from the contributions of agronomists, animal scientists, ecologists and others with deeper expertise in agriculture and sustainability.” The committee recommended new limits on sugar consumption and raised concerns about consumption levels of salt and saturated fats. However, the committee removed longstanding recommendations to avoid high-cholesterol foods. The committee also recommended higher consumption of vegetables and fruit, more whole grains, low- or nonfat dairy, seafood and legumes. The panel also took a shot at red meat and other animalbased proteins, instead promoting more plant-based diets for “sustainability” reasons. The government’s advisory committee includes medical and nutrition experts, whose recommendations are influential in guidances and regulations on federally subsidized programs, such as school lunches, food product labels and more. The full guidelines are available by visiting {health.gov/ DietaryGuidelines/}.
The Natural Resources Conservation Service (NRCS) last week announced a renewal option through March 31 for eligible farmers and forest landowners with expiring Conservation Stewardship Program (CSP) contracts. NRCS also extended the deadline for general CSP sign-up until Friday. Changes in the 2014 farm bill allow CSP participants with expiring contracts to renew them by exceeding stewardship thresholds for two or more existing natural resource concerns specified by NRCS or by meeting stewardship thresholds for at least two new natural resource concerns such as improving water quality or soil health. Nationwide, about 9,300 contracts covering more than 12.2 million acres are nearing the end of a five-year term and may be renewed for five more years. The farmer or forest landowner must complete all conservation activities in the initial contract before a renewal can be granted.
USDA announces $160 million for food, ag research, education
USDA’s National Institute of Food and Agriculture last week announced more than $160 million will be available for research, education and Extension projects. Five project-funding areas seek applied-science proposals related to food security, water, childhood obesity prevention, food safety and climate. A sixth funding area seeks projects that address six farm
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USDA previously announced $100 million will be available this year through the CSP. Although CSP applications are accepted all year, farmers and forest landowners should submit applications by the Friday deadline to ensure they are considered for this year’s funding. Submit applications to local NRCS offices. As part of the application process, farmers will work with NRCS field personnel to complete a resource inventory, which will help determine the conservation performance for existing and new conservation activities. The applicant’s conservation performance will be used to determine eligibility, ranking and payments. Farmers with existing contracts scheduled to expire this calendar year and who wish to renew for an additional five-year term must submit an application indicating their intent to renew to their local NRCS office before the national March 31 deadline.
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bill priorities: plant health and production and plant products; animal health and production and animal products; food safety, nutrition and health; bioenergy, natural resources and environment; agriculture
systems and technology; and agriculture economics and rural communities. Application deadlines vary by program area. Visit {http://1.usa.gov/KtlzFB} for more information.
Sheep industry day event slated
Fencing, pasture watering systems and programs to assist new sheep producers will be some of the topics discussed during Illinois Sheep Industry Day at 9 a.m. Saturday at the Illinois State Fairgrounds. Sponsored by the Illinois Sheep and Wool Marketing Board (ISWMB) and Illinois Lamb and Wool Producers (ILWP), the event will be conducted in the Illinois Department of Agriculture Building Auditorium. Enter at Gate 11. Lunch costs $4. ILWP members will conduct their annual meeting at 1 p.m., while ISWMB members will meet at 2 p.m. For more information, contact Jane Zeien at 815-544-9582 or email jzcci@aol.com.
Goat milk demand continues climb Americans’ interest in different food products is boosting the popularity of sheep and goat milk, raising questions of how farmers can meet demand. Sales of sheep and goat milk reached $92.2 million in 2012. Dairy goat farming, an emerging field, lacks the research and resources compared with the dairy cow sector. In 2014, the number of dairy goat herds increased 2
percent to 365,000 across the U.S., and sales climbed 15 percent. Consumer demand may be attributed to interest in dairy alternatives for supposed health and allergy benefits. Goat milk comprises a tiny fragment of the dairy industry. Cow milk accounted for nearly 95 percent of milk consumption in the U.S. last year compared with goat milk’s .02 percent.
Tuesday: • Lauren Lurkins, Illinois Farm Bureau director of natural and environmental resources: water use reporting • Harvey Freese, Freese-Notis Weather Wednesday: • Jennifer Vollen-Katz, John Howard Association of Illinois: Illinois prison system Thursday: • Chris Young, Illinois Department of Natural
Resources: white-nose syndrome • Ashley Fischer, Beck’s Hybrids, and Craig Rogers, FARMserver: using farm data • Jill Johnson, Illinois Beef Association Friday: • Don Wuebbles, University of Illinois: climate change • Don Schaefer, MidWest Truckers Association: truck access on local roads • Alex Wimbush, The Climate Corporation: new technology
Page 9 • Monday, March 9, 2015 • FarmWeek
GRAIN BELT EXPRESS HVDC INFORMATIONAL MEETINGS
Open to Farm Bureau members. Laura Harmon, Illinois Farm Bureau Office of the General Counsel, will speak. Greene, Macoupin, Scott, Pike: 10 a.m. Wednesday at Knights of Columbus Hall in Carrollton and 3 p.m. Wednesday at Pike County Farm Bureau in Pittsfield. Christian: 1 p.m. Thursday at Oak Terrace in Pana. Christian, Clark, Cumberland, Macoupin, Montgomery: 10 a.m. March 16 at Knights of Columbus Hall in Farmersville. Clark, Cumberland: 3 p.m. March 16 at the Casey VFW.
DISTRICT 18 — Gallatin, Jackson, Johnson, Massac, PopeHardin, Pulaski-Alexander, Saline, Union and Williamson Barefoot trimming for horses informational meeting, 6:30 p.m. March 16 at Southern Illinois Equine Barn in Goreville. Matt Jenkins will instruct. Contact your county Farm Bureau to register.
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UREAU — District Young Leader curling, 7 p.m. Friday at Waltham Curling Club in Triumph for members 18 to 35 years. Cost is $20. Call 875-6468 to register and for more information by Thursday. • Spring equine seminar, 6:30 p.m. Thursday at Black Hawk East Ag Pavilion. Doug Bogart, Doug Bogart Reining Horses, will provide a live demonstration and review training methods. OLES — Foundation scholarship applications available. Call 345-3276, email colescfb@consolidated. net or visit the Farm Bureau office for an application. Application deadline is March 17. OOK — Tickets for McDonald’s All American Games, 5:30 p.m. April 1 at the United Center. Net proceeds will benefit Ronald McDonald House Charities. Call 708-354-3276 or visit {cookcfb.org} for more information. • Chicago Flower and Garden Show March 14-22 discounted tickets. To purchase advanced tickets or for more information, visit {cookcfb. org} or call 708-354-3276. UMBERLAND — Bus trip to Gasthof Amish Village, Montgomery, Ind., leaving at 7 a.m. April 7.
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Cost is $50 for members. Call 849-3031 for reservations and more information. • Women’s Committee National Agriculture Week coloring contest for children 3 to 11. Coloring contest sheets available at the Farm Bureau office. Entry deadline is March 31. • Women’s Committee National Agriculture Week photo contest for children 13 and older. Call the Farm Bureau office for contest details. Entry deadline is March 31. OUGLAS — Annual meeting, registration at 5:30 p.m. March 19 at Yoder’s Kitchen in Arthur. David Erickson, IFB vice president, will speak. Call 253-4442 for reservations. REENE — Foundation scholarship applications for the 2015-16 academic year are available at the Farm Bureau office, and from school guidance counselors and ag teachers. Application deadline is noon March 27. ANCOCK — Used oil collection, 8 to 11 a.m. March 20 at Hancock County Extension Center, Carthage; Hancock County Fairgrounds, Augusta; and Sullivan Auctioneers, Hamilton. Proceeds will benefit the Hancock County Fair. Call 357-3141 for more information. • Insuring Your Future dinner meeting for young farmers, 6 p.m. Thursday at Lake Hill Winery. Call 357-3141 for reservations by Wednesday. ERSEY — Foundation scholarship applications for the 2015-16 academic year are available at the Farm Bureau office, and from school guidance counselors and ag teachers. Application deadline is noon March 27. ANKAKEE — Market outlook breakfast, 8 a.m. Wednesday at Kankakee Hilton Garden Conference Center. Dale Durchholz, AgriVisor senior market analyst, will speak. Cost is $5. Call 815-932-7471 to register by Tuesday. ASALLE — Young Leaders tour of CNH Engineering Facility at Burr Ridge, leaving the Farm Bureau office at 7:15 a.m. March 20. Call 433-0371 for reservations by Thursday. EE — District 4 Young Leader curling, 7 p.m. Friday at Waltham Curling Club. Call 857-3531 or email leecfb@comcast.net by Wednesday for reservations. • Young Leaders attending Ice Hogs Game, 7 p.m. March 21 at BMO Harris Bank Center. Ticket prices range from $14 to $16. Call 857-3531 or email leecfb@ comcast.net
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for reservations by Tuesday. IVINGSTON — Defensive driving course, 9:30 a.m. March 25 at the University of Illinois Extension office in Pontiac. Doug Sommer will teach the two-day course. Upon completion, drivers may be eligible for insurance discount. Cost is $10. Call 842-1103 to registration. ACOUPIN — MCAE Foundation Scholarship applications available at Farm Bureau office, by calling 854-2571, or by emailing mcfb@frontiernet.net. Application deadline is March 20. ARION — National Agriculture Week breakfast, 6 to 9 a.m. March 18 in the Farm Bureau auditorium. Cost is 50 cents. Proceeds will benefit Ag in the Classroom. Tickets are available at the Farm Bureau office. ASSAC — Young Farmers Committee farmer appreciation breakfast, 6:30 to 8:30 a.m. Saturday at Massac County Youth Fairground in Metropolis. Call 5245811 for reservations by Thursday. CLEAN — Open house 4 to 7 p.m. March 19 at new office located at 2242 Westgate Drive in Bloomington. ERCER — Up to nine Foundation scholarships will be awarded. Applications are available at {mercercfb.org} or at the Farm Bureau office. Applicants must be admitted to a post-secondary school during 2015-16, be a member of the Mercer County Farm Bureau or a dependent of a member by Jan. 1, 2015. Application deadline is March 27. ONROE — Annual meeting and silent auction, 6:30 p.m. Saturday at the American Legion in Columbia. Richard Guebert Jr., IFB president, will speak. Cost is $10. Tickets are available at the Farm Bureau office. Call 939-6197 for reservations. ONTGOMERY — Prime Timers luncheon meeting, noon March 18 at the Farm Bureau building. Brian Niemann, past president, will speak about the 2014 IFB infrastructure tour. Cost is $9. Call 532-6171 for reservations by Friday. OULTRIE — Charles B. Shuman $500 scholarship. Applicants must be a resident of Moultrie County, a graduating high school senior or currently enrolled in a university or community college. Applicants should exhibit potential for successful completion of a course of study in agriculture. Call 728-4214 for an application. Applica-
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seniors attending college in the fall of 2015 and graduates from Wabash County currently attending college pursuing a degree in an ag-related field of study are eligible to apply. Call 262-5865 or email wabashfb@ frontier.com for more information. Application deadline is March 31. AYNE — 4-H Project Grant Program applications are available at {waynecfb.com} or from 4-H club leaders. The grant provides financial assistance to purchase equipment and supplies. Application deadline is April 1. • Annual meeting, 6 p.m. March 20 at Cumberland Presbyterian Church in Fairfield. Visit {waynecfb.com} for notice of meeting. Call 8423342 for reservations by Friday. • Young Leader Henry American Farmer Tribute edition rifle raffle. Tickets are $10 each and available at the Farm Bureau office. Winner will be drawn March 20 at Cumberland Presbyterian Church during annual meeting. • Applications available at waynecfb.com for the 2015 Community Impact Grant. Application deadline is March 31. Call the Farm Bureau office at 842-3342 for more information. HITESIDE — Up to three, $2,000 Foundation scholarships will be awarded. Applicants must be a Farm Bureau member or a dependent of a member majoring in an ag-related field of study. The Foundation will also offer a $2,000 scholarship for current college students. Application is available at {whitecfb. org/scholarships}. Application deadline is April 3.
tion deadline is Friday. EORIA — Farmers Share of the Food Dollar Breakfast, 7 to 11 a.m. Saturday at Exposition Gardens in Peoria. Cost is 85 cents. A silent auction benefitting ag literacy and scholarships, and Barnyard Discovery’s live animals will be included. Call 686-7070 for more information. • Weather outlook and Natural Resources Conservation Service (NRCS) update luncheon, 10 a.m. March 17 in the Farm Bureau auditorium. Mike McClellan, Mobile Weather Team, and Ivan Dozier, NRCS, will speak. Call 6867070 for reservations by Thursday. TEPHENSON — Defensive driving class, 10 a.m. to 3 p.m. April 1-2 at the Farm Bureau office. Doug Sommer will instruct. Lunch will be provided. Cost is $15 for members and $25 for nonmembers. Call 2323186 for reservations by March 25. • Chicago Flower and Garden Show bus trip, leaving at 6:30 a.m. March 21. Cost is $35 for members and $40 for nonmembers. Call 232-3186 for reservations by Friday. ERMILION — Soil and water stewardship workshop, 9 a.m. to 2:30 p.m. Friday in the Farm Bureau auditorium. Jean Payne, Illinois Fertilizer and Chemical Association; Dan Schaefer, NWatch; and Lowell Gentry, U of I; will speak. Call the Vermilion County Soil and Water Conservation District at 4428511 for reservations by Monday. ABASH — Farmer’s Share Breakfast, 7 to 8:30 a.m. March 18 at Hogg Heaven in Mount Carmel. Cost is 20 cents. Call 262-5865 for reservations by March 16. • Two Foundation collegiate scholarships for the 2015-16 school year are available. Wabash County high school
“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity that is open to all members, contact your county Farm Bureau manager.
Six area FFA students learned about ag careers beyond farming at the recent Christian County Farm Bureau FFA Acquaintance Day. Andrew Durbin and Lucas Schmedeke from Morrisonville, Adam Cloe and Jim LaMarche Jr. from Pana, and Mary Kate Curtin and Travis Winans from Taylorville toured Caterpillar Inc. in Decatur and Monsanto in Illiopolis. The students will attend the Farm Bureau and
Affiliates Conference March 30-31 in Springfield. Christian County Farm Bureau has hosted an FFA Acquaintance Day for 40 years. The event aims to widen students’ minds about agribusiness careers. During the Caterpillar tour, FFA’ers saw mining equipment being built, including trucks and graders. The Monsanto tour included grain bin sites, dryers, and husking and sorting areas.
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FarmWeek • Page 10 • Monday, March 9, 2015
U.S. corn and soybeans find record demand
Last year’s corn and soybean crops set records for production as yields for both crops set new benchmarks. As a result, prices, not surprisingly, have slumped on increased supplies. The record corn and soybean crops have been well publicized. What has not received nearHugh Whalen ly as much press is the fact that demand for both crops is also at record levels, which has kept prices from falling as much as they otherwise would have. Worldwide demand for protein continues to grow at an impressive pace, fueling everincreasing soybean demand. BY HUGH WHALEN
U.S. soybean usage for the current marketing year is projected at 3.7 billion bushels as domestic soybean crush is just below record levels. Exports, projected at 1.79 billion bushels, would be 143 million bushels more than last year’s record amount. Early estimates for the 201516 marketing year have U.S. soybean usage near this year’s level despite strong competition from record soybean production in the Southern Hemisphere. The biggest customer for U.S. soybeans continues to be China as the expanding middle class there increases its appetite for meat. China will take about 60 percent of U.S. soybean exports this year. Chinese demand for soybeans will likely continue to grow in coming years in line with the middle class; the question is how much of their business the U.S. will garner.
Nationwide farmer survey on cover crops
Farmers are invited to share views on cover crops, regardless if they plant them or not, in a nationwide online survey being conducted through March 27. The results, which will be released this summer, will help growers, researchers, agricultural advisers, ag retailers and policymakers more effectively address cover issues and best practices. The survey is being conducted by the Conservation Technology Information Center and is sponsored by USDA’s Sustainable Agriculture Research and Education program, the American Seed Trade Association and Corn+Soybean Digest. To take the survey, visit {http://2014-2015covercropsurvey.question pro.com/}. All answers are anonymous; respondents will be directed to another website at the end of the survey to be eligible for a drawing for a $100 Visa gift card.
Ten years ago, U.S. corn usage totaled 10.66 billion bushels compared to 13.65 billion bushels projected for the current year. The increase in corn usage in the last decade has been due to the dramatic rise in ethanol production which used just 1.325 billion bushels of corn for the 200405 marketing year compared to the projection of 5.25 billion bushels this year. Corn used for feed during recent years has been relatively steady as animal numbers have not BY DANIEL GRANT FarmWeek
The old adage that those who don’t like the weather in Illinois should “wait five minutes and it will change” certainly seems to be the case in recent weeks. The late-season onslaught of abnormally cold and snowy conditions, after a warm start to winter, appears to be running out of energy. In fact, if the weather forecast the next couple weeks comes to fruition, it could feel more like spring even though it doesn’t officially arrive until March 20. “We certainly had aboveaverage snowfall and belowaverage temperatures for February and the first week of March,” said Jim Angel, state climatologist with the Illinois State Water Survey. “But according to the National Weather Service
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forecast, it could start to turn around the next few days.” The forecast calls for warmer than normal temperatures with highs in the 40s and 50s in much of the state this week. “(If realized) it’s going from one end to the other,” Angel said. “It may take a while to melt some of this snow, though.” Illinois received so much snow in February, anywhere from 10 to 20-plus inches across much of the state, that snowfall for winter ended up above average after starting out below average in December and January. And Mother Nature threw one more wintry punch at parts of southern Illinois and the southern Ohio valley late last week. “It’s a little unusual (to get so much snow) that far south this late in the season,” Angel said. “Southern Illinois, in an average year, gets about a foot of snow for the whole winter. Places there got 15 to 20 inches this winter (with more on the way late last week).” Meanwhile, the statewide temperature last month averaged just 18.6 degrees, which was 12.3 degrees below average and the seventh coldest February on record.
The statewide temperature the previous two months averaged 25.7 degrees in January and 33.9 degrees in December. While many people may remember the snowy end to this winter, it actually was on the dry side. Precipitation from December through February averaged 4.97 inches, 1.85 inches below average. “If it was summer time, I’d be worried because water demand is so high,” Angel said. “But in winter, we’re not using that much water, so it’s not that big of a deal.” Topsoil moisture last week in Illinois was rated 83 percent adequate, 16 percent surplus and just 1 percent short. The condition of the winter wheat crop deteriorated slightly last week to 47 percent good to excellent (down 2 percent from last month), 40 percent fair and 13 percent poor to very poor. Looking ahead, the National Weather Service last week also forecast a 50 to 60 percent chance of El Nino developing in coming months and lasting into summer. If realized, it could be good for crops as El Nino usually produces less summer heat stress in the Midwest, Angel added.
Late-season winter surge could give way to early spring
2015 I L L I N O I S
SOYBEAN
exports increase and/or through higher blend percentages (15 percent blend versus the current 10 percent, or more usage of higher blends by flex-fuel vehicles). Increased corn demand (likely ethanol demand) will be needed to support corn prices if yields continue to rise and acreage does not decrease.
increased appreciably. U.S. corn exports have varied considerably the past 10 years, from a high of 2.4 billion bushels to a low of 730 million bushels. This year’s export projection is 1.75 billion bushels. The steady rise in ethanol production appears to be over, at least near term, as more than 95 percent of the U.S. gasoline supply is blended with ethanol, and gasoline consumption has been declining. Additional ethanol production would be possible if
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Corn Strategy
ü2014 crop: The corn market continues its choppy, sideways market that it sometimes has during winter. Better selling opportunities will come this spring/summer; only make needed sales at this time. If you need to sell, we’d recommend a basis contract to secure cash, leaving pricing open into late spring. Continue to hold 2013 crop for expected longterm improvement. ü2015 crop: Technical aspects continue to build the case for higher prices, although we don’t expect much movement until spring. We see no reason to price new crop at this time. The time is ripe to buy out-of-the money, new-crop call options you can make cash sales against this spring or summer. vFundamentals: As much as anything, the corn market is slipping from the psychological drag of other commodities and a stronger dollar. But fundamentally, there’s little fresh negative news. The March 31 USDA numbers and spring planting weather will dominate activity going forward.
Page 11 • Monday, March 9, 2015 • FarmWeek Cents per bu.
Soybean Strategy
Corn export sales still on track
Even with the trade’s angst surrounding corn export potential this marketing year, sales remain ahead of pace to reach the USDA forecast. Corn shipments may be lagging the expected pace, but remain ahead of last year at this time.
And given the late planting date and fuel tightness, there’s reason not to expect a big South American second-crop corn planting. That should help our exports strengthen into summer like they did last year. Wheat exports continue to drag, weighing on price expectations. Even though shipments are still on pace to reach the current forecast, the sales pace is starting to slowly lag behind. Soybean sales and shipments remain on pace to reach, if not exceed, the USDA forecast.
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ü2014 crop: Even though the Brazilian truck strike has ended, short-term U.S. export demand will remain relatively good. We still expect better pricing opportunities again, but they won’t surface until after the March 31 USDA reports. ü2015 crop: New-crop prices continue to take their lead from old-crop prices. This year’s lower insurance guarantees aren’t an incentive to plant low-quality land this year. We have no interest in pricing 2015 crop at these levels. vFundamentals: Even though the Brazilian truck strike is over, there’s still a question as to how aggressive producers will sell soybeans. The weakness in their currency, and prices at cost-of-production at best, may restrain their selling somewhat. While sales will be relatively ample, they aren’t likely to flood the market. Argentine producers are upset with a government requirement to register the sales of silo bags. Only selling enough soybeans to cover cash needs is still their preferred strategy. Hence, South Ameri-
can exports may not be as large into summer.
Wheat Strategy
ü2014 crop: Prices are still in the process of carving out a bottom. Better opportunities for sales should come during spring. ü2015 crop: Hold off making sales with prices again at the lower end of the larger long-term price range. vFundamentals: Traders are decidedly bearish wheat right now, and there has been some big money jumping in to back the short side. The current theme revolves around big old-crop stocks and multiyear
strength in the dollar. U.S. exports are not competitive, and the outlook for improvement is bleak. Analysts are looking for another cut in the forecast when USDA updates the balance sheet on Tuesday. Feelings for new crop are mixed. There has been concern over drought in the Southern Plains and winterkill potential across the Wheat Belt, but temperatures are now moderating, and some thirsty soil is enjoying the snow melt. It seems Russia and Ukraine may also manage to escape the season with less winterkill damage than previously anticipated.
FarmWeek • Page 12 • Monday, March 9, 2015
Faces of Farming, Ranching busy educating about modern farms
TAKE HEART (Photos by Cindy Cagwin-Johnston)
A good guy, heifer
define ‘winner’ Dee, Illinois Farm Bureau Region 3 manager. John, a freshman at Petersburg PORTA High School, remains a young man of few words Doug Gellerman holds Ruby, while his and a lot of cattle son, John, attends to last-minute groomsense. He recoging at the North American International nized something Livestock Exposition in Louisville, Ky. special in the red heifer from the time she arrived, bought sight plucky teenager unseen from Sullivan Farms in and his special Dunlap, Iowa. “As soon as she heifer take prize arrived, I was able to put a after prize and halter on her and start workcap a magical year in the Januing with her,” John rememary Super Bowl of cattle bered. shows, the National Western Hard work requires dedicaStock Show in Denver — a tion. Every day, John prepared classic David-and-Goliath tale Ruby for show season. He with a farm walked her, combed her, and twist. rinsed and blew out her hair. Envision That dedication meant a lot of 680,000-plus after-school hours so John visitors, 20 gave up basketball — not an breeds of the easy sacrifice at a small high top show cattle school, especially when you’re from across the KAY tall. “One coach asked me SHIPMAN U.S. and Canaevery day to play,” John said. da, professional “I never told anyone at school groomers and what I was doing.” handlers working with multiple Working with Ruby, John proven winners. Enter a 15said he learned the importance year-old from central Illinois of proper feeding and prepawith his lone superstar heifer ration before entering the ring. and support from his parents. The two became a team. It’s those lessons we teach “After her first few shows, I our children: Work hard, belearned that she liked showing lieve in yourself and dream as much as I did,” he said. “I big. knew when she went in the Over the summer, I became ring, she would do her best.” a fan of John Gellerman, a Ruby’s best rewarded John’s lanky teen entering high dedication. Winning reserve school, and Ruby, his registered supreme champion heifer at Shorthorn heifer. I followed the Illinois State Fair in John’s and Ruby’s adventures August, the duo advanced to via Facebook photos and the “green shavings” of the updates from his mom, Dee North American International
A
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Livestock Exposition in Louisville, Ky., where Ruby won reserve grand champion Shorthorn in the junior show. Asked how he handled jitters when facing the nation’s top competitors, John answered with the honesty of youth, “I put on my game face and went on in the ring.” Even game faces can be tested by mischief. “Ruby likes to lick pretty much everything, including me,” John said. “At a few shows, she would lick me in the showring and a few times she started to bite me.” Behind any dedicated teenager is a supportive family, in John’s case his parents, Doug and Dee Dee. “Due to John’s and Ruby’s hard work, we, as a family have traveled to places we never would have gone and met people we never would have met,” Dee Dee reflected. “It has been a year we will never forget.” If Hollywood wrote the ending, John and Ruby would have brought the top prize in Denver back to Illinois. Instead, real life entered, John and Ruby competed respectably, received recognition, including reserve intermediate champion female in the junior show and ended their fairy tale season. Some people may hold cynical beliefs that the little guy doesn’t stand a chance in livestock competitions. Then along comes a John Gellerman and Ruby, proving again that good, hard-working guys with big dreams and good heifers are winners. Kay Shipman serves as FarmWeek legislative affairs editor.
Only one letter per writer will be accepted in a 60-day period. All letters will be subject to editing. Far mWeek will not publish political endorsements. You can mail letters to: FarmWeek Letters, 1701 Towanda Ave., Bloomington, Ill. 61701, or email CAnderson@ilfb.org.
Since November when the five new Faces of Farming and Ranching were announced by U.S. Farmers & Ranchers Alliance (USFRA), our days working on the farm have changed ever so slightly. Whether we’ve spent more time developing our blogs, expanding our social media communities or participating in media interviews and THOMAS panel discusTITUS sions, connecting with consumers has taken a front seat. As each generation continues to have more questions about where its food comes from, sharing each farm’s unique story will become part of the daily farm responsibilities to continue to build trust and transparency of consumers. Social media platforms have been a focus for telling our farm’s individual stories and engaging in online consumer conversations. Some days are certainly not for the faint of heart, but the ability to connect and engage with consumers from across the country, and even the world, is immense. We are able to reach and hold a dialogue with a broad cross section of consumers. Sometimes, it is nothing more than posting a few pictures of onion planting on Instagram, biosecurity measures on Twitter or following #PetuniaThe Pig on Facebook to light the fire of conversation. The Faces of Farming and Ranching have been engaging in online social dialogue with USFRA during three key, recent events. In January, the Food Tank Summit, a panel discussion dissecting the future of food production, took place at George Washington University. The conversation online brought together dialogue from small organic farmers, consumer food connectors to family farmers from across the world discussing farming practices and how we are going to feed an expanding population by 2050. Later in the month, we participated in the USFRA Food Dialogues Dairy Forum discussing animal care. Using Twitter, we were able to respond to questions, facilitate online discussion and share unique things that we do on our respective farms. On Feb. 12, a Twitter party
was held with @Resourceful Mom, Amy Lupold Bair and her followers, discussing their Valentine’s Day meal plans, while helping answer some of their food questions at the same time. The #FoodD hashtag on Twitter engaged more than 145 people who produced more than 3,000 tweets and 11 million impressions! A unique look into our pig farm occurs through the eyes of #PetuniaThePig. Petunia is a purebred Yorkshire gilt, who is sharing her life on Facebook, Twitter and Instagram. Her name was chosen by drawing from more than 40 names submitted on Facebook and Twitter. Posting a daily picture of what she sees and experiences is one way we are starting to show what the life of a pig is like on our farm. She doesn’t do many tricks yet and hasn’t seen a spider web or anything extraordinary, but #Petunia ThePig is creating quite the stir as not every person has a chance to see a piglet grow from birth, and it is hard to tell what Petunia’s life may hold. She could become a food animal, a breeder, or more likely, a show pig for a 4H or FFA member. #PetuniaThePig not only allows followers to see how a pig is grown and raised, but more importantly builds trust and transparency for consumers about the food they are providing for their families. The impact that #Petunia ThePig has received on social media has been great. Her images are shared by social media users up to 120 times per day and create impressions much beyond my personal accounts. Although the nonfarm outreach is continually growing, this is a segment of consumers we as farmers really need to begin focusing telling our farm stories to. Like many farming methods, #PetuniaThePig has received some backlash, but engaging in those conversations only helps continue to build trust and transparency in the American farmer and food system. So, stay tuned and watch how #PetuniaThePig grows and develops in the coming months. Follow the story by searching #PetuniaThePig on Twitter, Facebook or Instagram. Thomas Titus of Elkhart serves as one of five Faces of Farming and Ranching for USFRA.