IN A SURPRISE MOVE, the General Assembly last week voted to end free medical care for state retirees. The move may set the stage for future budget action. ....3
A NEW HOG FACILITY in Livingston County should improve the efficiency of the operation and perhaps pave the way for the farm’s succession. .......................................5
HEALTH PROFESSIONALS are striving to learn more about injuries that can befall farmers in order to be better prepared to offer treatment. ............................................9
Monday, May 14, 2012
Two sections Volume 40, No. 20
FMCSA decision resolves intrastate vs. interstate issue IFB’s input seen as critical BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
The Federal Motor Carrier Safety Administration (FMCSA) announced it will use a new method to resolve issues of interstate vs. intrastate commerce for Illinois farmers hauling commodities, Steve Mattioli, FMCSA’s Illinois division administrator, told FarmWeek last week. Mattioli, based in Springfield, stressed the ruling will apply only in Illinois because of specific circumstances with commodity transportation and marketing in the state. (See accompanying story on page 3) Last week’s notification resolves a third FMCSA regulatory issue involving Illinois farmers. Last August, FMCSA addressed two others, one related to “for-hire carrier” status and the other, new safety requirements for implements of husbandry. “We are pleased with the r uling,” said Illinois Far m Bureau President Philip Nelson.
“We appreciate FMCSA and DOT (Department of Transportation) officials listening to our concerns and visiting Illinois farms last summer. “This ruling clarifies a number of provisions related to DOT and UCR (unified carrier registration) regulations for farmers hauling their grain or livestock commodities to markets within the state,” Nelson said. Mattioli said FMCSA’s decision, which took effect May 3,
would free up enforcement resources for use in other needed areas. He thanked Illinois Farm Bureau for its work and for Steve Mattioli last summer’s farm tour for Anne Ferro, FMCSA administrator, and several staff members. “The two-day tour was real-
ly a turning point for me as well as others,” Mattioli said. “You came away with a different perspective that you didn’t have before. Talking to farmers and elevators was very helpful in coming up with what (decision) we have today.” Under the new decision, FMCSA will consider it intrastate commerce when farmers transport commodities to the first point of delivery, such as an elevator or a
livestock market. In those circumstances, a farmer would no longer need a U.S. Department of Transportation (USDOT) number or be required to pass a newentrant safety audit to haul commodities to a first point of delivery, according to Mattioli. However, there might be other in-state locations that could be considered interstate See Decision, page 3
Rain eases most dryness concerns
Deep Southern Illinois still dry BY DANIEL GRANT FarmWeek
Periods of rain and thunderstorm activity the past two weeks, including some areas of localized flash flooding, eased most concerns about dry soils for the time being, according to Jim Angel, state climatologist with the Illinois State Water Survey. Much of the northern twothirds of the state the past two weeks received anywhere from 2 to 4-plus inches of rain, including 7.36 inches in Marseilles near Interstate 80. Prior to the recent rainfall activity, a portion of West-Central Illinois was classified as being in a “modest drought” while other areas of the state were “abnormally dry,” according to the U.S. Drought Monitor. “Things certainly look a lot better now than they did two weeks ago,” Angel said last week. “We got some significant rain and, more importantly, it was in areas that were on the dry side.” Topsoil moisture last week was rated 26 percent surplus, 68 percent adequate, and just 6 percent short, the National Agricultural Statistics Service Illinois field office reported. Two weeks ago 28 percent of topsoil moisture in the state was rated short or very short.
“The soil moisture report shows it’s back to adequate for
FarmWeekNow.com Check Cropwatchers for pictures of the flooding in northern counties at FarmWeekNow.com.
this time of year,” Angel said. “And stream flows, which are a good indication of conditions, look good except for maybe one or two streams.” Angel said his one area of concern is deep Southern Illinois. A swath of Southern Illinois along with parts of Missouri, Kentucky, and Tennessee last week remained dry.
“The far southern part of the state has been on the dry side for the last month or so,” Angel said. The weather outlook on Friday called for a chance of scattered showers over the weekend followed by warmer temperatures the next couple of weeks and drier conditions. While some farmers continue to pray for rain, others would welcome more sunshine. Robert Bellm, University of Illinois crop systems educator in Brownstown (Fayette County), said conditions have been very wet in his area. “We’re wet. Very little fieldwork has been done the last
month,” said Bellm, who noted some heavy rains created field ponds. “Some guys may end up having to patch in areas (of fields) that were drowned out. I’m sure there will be some corn replanted.” Last week 89 percent of the corn crop was in the ground statewide compared to the fiveyear average of 47 percent. Sixty-four percent of the crop was emerged, well ahead of the average of 18 percent. Meanwhile, nearly a quarter of the soybean crop (21 percent) was planted in Illinois as of the first of last week, which was three times ahead of the average pace of 7 percent.
This field along Cedar Road east of Manhattan in Will County shows the aftermath of more than seven inches of rain received last week. Most of the 4.3 inches fell over three hours late Sunday-early Monday. Until then, the area had experienced “the most perfect spring — six weeks in a row,” said Will County Farm Bureau member John Kiefner, a Manhattan farmer. (Photo by John Kiefner)
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FarmWeek Page 2 Monday, May 14, 2012
Quick takes BEEF PLANTS TO CLOSE — Beef Products Inc. (BPI), the nation’s largest producer of lean finely textured beef (LFTB), last week announced it will permanently close three of its production plants. The closings will be effective May 25. The decision was driven by public backlash to LFTB, a 90 percent lean beef product which was labeled by many in the mainstream media as “pink slime.” “This is a direct reaction to all the misinformation about our lean beef,” BPI spokesman Rich Jochum told Reuters news service. More than 650 people will lose their jobs when the plants are closed in Waterloo, Iowa; Garden City, Neb.; and Amarillo, Texas. TRADING HOURS SPARK CONCERN — The National Grain and Feed Association (NGFA) and the North American Export Grain Association (NAEGA) last week sent a letter to the Commodity Futures Trading Commission (CFTC) that requested a 30-day public comment period concerning plans to expand trading hours. The Intercontinental Exchange (ICE), CME Group, Minneapolis Grain Exchange, and the Kansas City Board of Trade in recent weeks all unveiled plans to offer electronic trading hours 22 hours per day for grain and oilseed futures and options contracts. “Neither the ICE contracts nor the CME Group’s plan to expand electronic trading hours was vetted properly with appropriate market participants” prior to the announcements to expand trading hours, NGFA and NAEGA stated in the letter to CFTC. NGFA and NAEGA do not oppose an expansion of electronic trading hours but fear current plans initially could create issues that could lead to competitive inequalities and impose additional costs, the groups said. ICE as of last week planned to begin trading new grain and oilseed contracts (22 hours per day) today (May 14) while CME Group’s plan to expand existing electronic trading takes effect May 20. ILLINOIS FFA HARVESTS FOR ALL — Over the past year, FFA chapters across the state collected 43,029 pounds of non-perishable items, $9,461.17 in cash, and donated 603.25 hours of service for the Illinois Farm Bureau Harvest for All program sponsored by the IFB Young Leader program, according to Mariah Dale-Anderson, IFB youth activities manager. Items gathered stayed in the local chapter’s area to feed the hungry. Williamsville FFA Chapter collected the most with 6,980 pounds of non-perishable food. Other top chapters were Orion FFA, second; West Central FFA, third; Cissna Park FFA, fourth; and Lexington FFA, fifth. The top five chapters will be recognized June 13 during the state FFA Convention in Springfield.
(ISSN0197-6680) Vol. 40 No. 20
May 14, 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.
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IFB In actIon
Third-generation farmer, Green, draws on past to ensure future success BY DANIEL GRANT FarmWeek
Dennis Green’s appreciation for history is more than just a hobby. The third-generation farmer from Lawrenceville has drawn on the past to do everything from make career decisions and learn about family history to find a niche on the farm that keeps him busy when he’s not in the field. Green studies military history, particularly the Civil War and World War II (his father, Don, served in the Marines in World War II and fought in the battle of Okinawa during the Pacific campaign). Green, 59, and his wife, Debbie, own a corn and soybean operation in Lawrence County. This past December he was elected the IFB District 13 director, representing Clark, Coles, Crawford, Cumberland, Jasper, Lawrence, and Richland counties. He knew from an early age he wanted to farm full time. “I was in FFA and studied agriculture in college (and graduated from the University of Illinois with a degree in ag in 1974),” Green said. “Debbie and I came back to the farm after college” and the couple has been in agriculture ever since. Green got started in ag leadership by following in the footsteps of his father. “When I was a child, my dad was on the Lawrence County Farm Bureau board and when I came back, I was asked (to run for an open position on the board),” he said. “In some ways it was a continuation of being involved in something. It probably traces back to my time in FFA.” Green served on the Lawrence County board from 1976 to 1992, including a stint as president. He rejoined his county FB board in 2002 and continues to serve on it. The Greens have three grown children, Jonathan, Sara, and Jason, and five grandchildren. He felt the time was right to serve Farm Bureau at the state level. “If I’d (run for the state board) years ago, I wouldn’t have been able to watch all my kids’ activities,” he said. “But I always wanted to be
involved in the decision-making process so when the opportunity to represent (FB) members in District 13 came up this time, my wife and I decided go for it and see what happens. “A lot of issues come up all the time that can have a huge
impact on farmers now and in the future,” he continued. “Farmers need an organization like IFB that looks out
for farmers’ interests locally and at the state and national levels.” Green also served on the Lawrence County Unit 20 School Board from 1989 to 2002, and held the office of president for 10 years. He and Debbie are members of the Pleasant Ridge Christian Church. Green became more interested in studying military history when his father, who passed away in 1999, talked more about his war experiences during the last few years of his life. He also read Tom Brokaw’s book “The Greatest Generation.” “That piqued my interest to find out more information,” he said. When he’s not reading history books, one of Green’s other favorite hobbies is cooking. “I’m kind of a cook around the house,” he said. “I got started cooking when our kids were in 4-H.” One of his favorite creations is chocolate chip cookies.
Dennis Green, IFB District 13 director from Lawrenceville, poses in his kitchen with some historical artifacts from his late father, Don, a Marine who fought in World War II, along with a batch of freshly baked cookies. Green in his spare time enjoys studying history, particularly the Civil War and World War II, and he also cooks — a hobby he picked up when his children were in 4-H. (Photo by Ken Kashian)
Page 3 Monday, May 14, 2012 FarmWeek
government
Illinois teachers, farmers speak out about labor rule impact BY KAY SHIPMAN FarmWeek
Illinois youngsters would have been severely restricted from doing farm work or learning certain farming skills if the Department of Labor (DOL) had put new child ag labor guidelines in place. Illinois agricultural educators, ag organizations, and youth groups sent that message to Washington, D.C. In late April, DOL announced it was withdrawing the controversial guidelines. More than 10,000 comments, many from Illinois, were submitted to the agency. “I think at the end of the day they heard from the country,” said Illinois Farm Bureau President Philip Nelson. “We know it (the guidelines) would have had a tremendous impact on kids who worked with their uncles, grandparents, the neighbor across the road,” said Jim Craft, executive secretary of the Illinois FFA Association. In Illinois, the FFA and the Illinois Association of Vocational Agriculture Teachers (IAVAT) worked to get information to FFA members and their parents and FFA alumni, Craft said. Craft commended the state’s agricultural community —from FFA chapters and 4-H clubs to the commodity organizations and IFB — for responding.
‘We know it (the guidelines) would have had a tremendous impact on kids who worked with their uncles, grandparents, the neighbor across the road.’ — Jim Craft executive secretary Illinois FFA Association
“Many hands make light work,” Craft said. Seneca High School ag teacher Jeff Maierhofer, a member of the National Council for Agricultural Education, took his concerns directly to congressional staff while attending meetings in
Washington, D.C. The FFA and ag educators shared information via e-mail, social media, and word of mouth, he said. “This (guideline) was set to take effect and impact many people,” Maierhofer said. Every opportunity was
family also submitted comments to DOL. Walter said he believed the many comments made a difference. “I hope we haven’t gotten to the point where agencies don’t listen to the people,” he said. However, agriculture cannot rest on its laurels and must focus on agricultural safety for young people. “We need to teach young people when they get involved in FFA and 4-H about farm safety,” Nelson said. “This is a wake-up call for ag education to make sure we do a wonderful job of teaching farm safety to all levels (of students),” Maierhofer added.
Legislature nixes free medical coverage for retirees In a surprise move last week, the Illinois General Assembly voted to end free health insurance benefits for retired state employees. The House and Senate approved SB 1313 that allows premiums for group health insurance programs for retired state workers, judges, lawmakers, and university employees to be set by the governor’s office. “Under this legislation, the director of Central Management Services, the state’s human resource department, would set the premiums. “The recommended premium would then be finalized through the General Assembly Joint Committee on Administrative Rules,” said Kevin Semlow, Illinois Farm Bureau director of state legislation. Driving the issue is the more than $800 million price tag for providing
approximately 78,000 state retirees free health care. The actual amount of savings the change will bring is unknown, but Gov. Pat Quinn has called for a $300 million reduction to the ever-increasing costs of state retiree health care. “Part of the significance with the passage of this bill is that it could set the political stage for the other controversial items the General Assembly is left with to pass next year’s state budget,” said Semlow. “Many in the State House feel this sets the battle to come on Medicaid and state employee pension changes being called for by Governor Quinn. This could be the start of a blueprint to building the necessary votes to take those issues on.” During the debate in the House, Speaker Michael Madigan (D-Chicago) alluded to issues yet to be addressed: “If
What do you do if you have a USDOT number? A farmer who has a U.S. Department of Transportation (USDOT) number has options, given the new Federal Motor Carrier Safety Administration (FMCSA) ruling on interstate vs. intrastate commerce in Illinois. Steve Mattioli, FMCSA’s Illinois division administrator, told FarmWeek farmers who now find themselves classified as an intrastate carrier fit into one of three scenarios and explained their options. They are: • A farmer who has a
used to share information with senators and congressmen, Nelson said. IFB even invited DOL staff to visit an Illinois farm and gain firsthand information. The invitation still stands, he added. LaSalle County Farm Bureau member Darren Walter of Grand Ridge and his family used a national opportunity to share their story in a January “USA Today” article. Walter said he received many favorable comments about the story that explained his sons, Austin and Dalton, would no longer be able to work on family members’ far ms. Members of the Walter
USDOT number and passed a government new-entrant audit has three options. If he wants to keep the number and his current interstate status, he does not have to do anything. Or, he may inactivate the number, or he may change his status to intrastate. • A farmer who has a USDOT number, but did not take a new-entrant audit has two options — no new-entrant audit would be required for either. He may inactivate his number or he may change his status to intrastate.
Decision Continued from page 1 commerce. Those will be addressed on a case-by-case basis when they surface, Mattioli said, adding the Illinois division will work with Farm Bureau to address those cases. The new decision does not apply to farmers who transport commodities to a river terminal or an intermodal facility, which the agency would define as interstate commerce, Mattioli said. Farmers who transport commodities to those locations still would be considered doing interstate commerce and need a USDOT number and would have to pass a new-entrant audit.
A farmer who has a USDOT number, failed a newentrant audit, and still is in failure status needs to take steps to correct the failed status, or inactivate his USDOT number. Mattioli described that action as signifying to FMCSA the farmer would no longer be regulated as an interstate carrier by the agency. The farmer may make those changes by going online to {www.fmcsa.dot.gov/onlineregistration} or completing and submitting an “MCS-150” form by requesting one from FMCSA at 800-832-5660. Farmers who choose to take action online will need to use the specific pin numbers that they received in the letter with their USDOT numbers, Mattioli said. If a farmer cannot remember his pin number, he may request another one online and would receive it in the mail within a few days. — Kay Shipman
you take this bill and compare it to other matters we’re being asked to do in this session, I say if we (the General Assembly) can’t do this bill, what are we going to be able to do?” “Seeing what was done on this issue, it is going to be very politically difficult, but not impossible, for the General Assembly to tackle pension and Medicaid reform,” said Semlow. “The biggest question is whether these issues can be resolved before the May 31 adjournment date. If they are not, the whole game changes because any action after May 31 will take a super majority vote,” he said. The House approved the legislation with 74 yes and 43 no votes. The Senate vote was 31 yes and 20 no. The measure now will be sent to Governor Quinn, who has indicated publicly that he will sign it.
Tenaska energy plant proposal resurfaces A project known as the Taylorville Energy Center (TEC) has resurfaced — albeit in two phases — after first being defeated in the November 2011 veto session. The project is backed by Tenaska Energy of Nebraska. Illinois Farm Bureau opposes the TEC because it would directly increase farmers’ costs through higher electric rates and indirectly increase their other expenses because farm suppliers and other agribusinesses would pass along higher energy costs. The new proposed phased-in project would defer use of $3.5 billion in clean-coal technology and instead include a $1.2 billion natural gas plant for a portion of the TEC. The proposal would authorize construction of the plant and would require higher electric rates for both residential and business customers to subsidize the plant’s construction and operation. The proposal also seeks 30-year power contracts guaranteed by state law for the new plant. The bill further would put in place the ability for TEC to add the clean-coal technology portion of the project later and charge higher electric rates to fund the construction, if the General Assembly in the future adopts a simple resolution.
FarmWeek Page 4 Monday, May 14, 2012
the farm bill
Senate farm bill plan: more options, complexity BY MARTIN ROSS FarmWeek
The Senate Ag Committee’s 2012 farm bill proposal would end direct payments and existing price-based countercyclical supports, the Average Crop Revenue Election (ACRE) program, and the Supplement Revenue Assistance (SURE) disaster program by the end of the 2012 crop year. That move alone reportedly would generate a net $15 billion in savings. Replacing current programs would be what the committee calls an “innovative risk management approach” that would provide assistance to growers threatened by “risks outside their control.” The linchpin of that approach is the Ag Risk Coverage (ARC) program, which would complement crop insurance to protect against price and yield losses. Farmers would make a one-time choice between ARC coverage at the individual farm level on 65 percent of their eligible planted acres, or at the county level on 80 percent of eligible acres. Payment rates would depend on the farmer’s election, and growers could receive payments only for acres that are actually planted. Payments would be available when farmers incur actual revenue losses based on calculations using an Olympic average of their previous five crop years, dropping high- and low-revenue years. Illinois Farm Bureau risk management specialist Doug Yoder sees ARC as improving on ACRE “in several aspects,” including a choice between individual or county coverage and movement from ACRE’s dual state/farm loss eligibility trigger to a single trigger. Further, farm landlords and tenants would not have to mutually agree to participate in the proposed new program. Confusion over ACRE and its implications — especially among absentee landlords — reportedly was a factor in low ACRE participation rates. ACRE bases payments on an entire crop year’s average price, which is not available until the following August. ARC calculates payments
based on the first five months of the marketing year, meaning growers could receive payments in late February or March instead of the following October. And where ACRE benefits tended to weigh more heavily toward corn and wheat growers vs. soybean producers, University of Illinois economist Gary Schnitkey argues ARC likely would be more crop-neutral. That’s potentially key in satisfying lawmakers from various producing regions. “This program has less (federal) cost than ACRE,” Schnitkey told FarmWeek, “but it does provide protection when prices or yields go down. ARC would do a good job of covering those multi-year price declines. On the other hand, risk options under the Senate plan appear “quite complicated,” Yoder said. The bill offers a new crop insurance twist: A Supplemental Coverage Option (SCO) would allow growers to buy add-on coverage on an area basis, enabling them to simultaneously use individual and county-level policies on the same acre. For example, a farmer could buy a countybased product similar to existing Group Risk Income Protection (GRIP) coverage on top of an existing Revenue Protection policy to cover all or part of his out-of-pocket loss deductible. SCO establishes a trigger on coverage offered only if losses exceed 21 percent for farmers enrolled in ARC and 10 percent for all other producers. If a farmer “skips” ARC, he can use SCO to completely cover his insurance deductible, Yoder reported. And that’s where the tough decisions may arise. A producer might opt for ARC on an individual coverage basis, where a landlord could prefer enrolling in ARC with a county guarantee, sidestep ARC in favor of crop insurance with SCO, or select a combination of ARC and SCO. “There are more options, but that also leads to more complexity, because (Congress is) also building in rules to prevent program/payment overlap,” Yoder said.
Crop insurance strength Senate bill ‘cornerstone’ Protecting the “cornerstone” of federally supported risk management is crucial to ensuring farmers can weather future natural and market setbacks, Illinois Farm Bureau risk management specialist Doug Yoder argues. The Senate Ag Committee’s farm bill plan would preserve the existing crop insurance budget while improving coverage for all commodities and “underserved” crops and regions. The measure allows USDA’s Risk Management Agency (RMA) development of new or improved insurance products. It would create a public/private partnership to make weather insurance products available to fruit and vegetable growers who lack price or yield data needed to buy traditional insurance. Further, the plan would grant beginning farmers a 10 percent discount for all crop premiums while offering an “improved” production history for eligible beginning farmers who have previous farm experience or face natural disasters. While farm lawmakers have strived to protect crop insurance from the budget ax, farmers are concerned by continued rumblings about eliminating or setting individual thresholds for federal premium subsidies. Yoder maintains crop insurance is, more and more, “becoming a cornerstone of the farmer’s risk management options.” He has seen three general proposals for trimming insurance funding, including reductions in percentage subsidy rates for various coverage levels, a cap on the amount of annual subsidies available to an individual farmer, or a cap on individual crop claims — according to Yoder, the “most egregious” of those options. “Even though policies are subsidized, farmers still invest a great deal of money in this protection,” he stressed. “To eliminate that based on capping subsidies to an individual farmer would greatly limit his ability to manage his risks in an obliviously very risky environment.” The Senate Ag Committee plan also would make permanent additional subsidies for coverage of “enterprise units” — all of an individual’s insurable acreage of a crop within a county. Since the 2008 farm bill, enterprise coverage with higher premium subsidies has provided continued grower savings and thus encouraged insurance participation. The bill also addresses a declining Actual Production History (APH) yield problem by increasing county transitional yields or “T-yields” by 10 percent. “Currently, if you pick up a new piece of property and don’t have history on it, one option is to take the transitional yield, which is 60 percent of your county yield,” Yoder explained. “This legislation proposes to take that up to 70 percent.” — Martin Ross
Swine risk management key in globalized market In a globalized pork market, one outbreak, one market disaster can mean a world of hurt for U.S. hog producers. That’s why the Senate Ag Committee seeks to strengthen the livestock safety net by directing a study of a possible “catastrophic risk management insurance” that would cover lost swine input costs resulting from an animal disease or other event that halts U.S. pork exports. National Pork Producers Council (NPPC) board member Gary Asay of Osco applauds the proposal. Asay chairs NPPC’s Risk Management Committee and is licensed to sell Livestock Gross Margin (LGM), an insurance product designed to help swine, cattle, and dairy producers cope with
high grain prices. “We’ve done an excellent job of promoting our product overseas and increasing exports,” he told FarmWeek. “We’re getting close to 30 percent of production going overseas. “We’re in a good climate because of the passage of (bilateral) free trade agreements. But that puts a lot of price risk on us.” LGM protects against a loss in gross margin — the market value of livestock minus feed costs. Farmers can insure swine they expect to market 12 times a year, for a six-month coverage period, and policies are available for farrow-to-finish, feeder pig/finishing, and segregated early weaned operations. LGM has provided effective protection “in times
when the market’s taken dives,” Asay said. But while LGM has been available to Illinois farmers for three years, the product “isn’t generally well-understood,” said Asay, noting fewer than 10 policies often are sold per month nationally. Further, premiums remain relatively high, and Asay believes a 12-month coverage period would better suit farmers’ needs. “That way, when the farmer’s making a decision about whether to breed a sow, you have some kind of coverage for when that (new) hog goes to market,” he said. “Six months doesn’t do that.” LGM coverage is limited to 15,000 hogs during an individual insurance period or a maximum 30,000 animals per year. Many producers find
that “constraining,” Asay said. Almost as constraining is the LGM sales window — the product is available once a month, from 4 p.m. on the last Friday of the month through 8 p.m. the next day. LGM gross margin is calculated based on hog, corn, and soybean futures activity over the three trading days prior to monthly product sale, but Asay argues limiting sales essentially to non-business hours “puts everybody at a disadvantage.” “If you have big moves in the market, that can totally take the viability out of this program,” he advised. The 2008 farm bill allocated a mere $20 million in annual nationwide federal funding for LGM in total, and only $3 million currently
is available for swine LGM. The dairy industry taps $16 million to $17 million per year, while cattle producers, who pay even higher premiums than swine policyholders, use the product “sparingly,” Asay reported. NPPC has addressed the need for program changes with USDA, but Asay hopes the House as well as the Senate will pass risk study provisions that could help spur LGM changes. “Some think that if we made the needed changes, LGM would be the product we need in the future, while others say too many changes need to be made to make it a good product,” Asay said. “I think it’s a very good, workable product, but we definitely need some sort of coverage nationwide.” — Martin Ross
Page 5 Monday, May 14, 2012 FarmWeek
LIVESTOCK
New hog facility more efficient, better for animals BY DANIEL GRANT FarmWeek
The opening of a new 4,500-head, wean-to-finish hog facility last week on the farm of Patrick and Julie Harms in Livingston County will provide more than just improved efficiencies for hog production. The state-of-the-art facility also was designed to improve the welfare of the pigs. And, long-term, the Harmses believe the expansion of the operation will provide their children, Duke (12), Wyatt (9), and twins Cole and Josie (4), an opportunity to farm if they choose to do so in the future. “The most important thing is my dad (Duke) gave me the opportunity to farm, and I hope to do the same and turn this over to my kids,” Harms told FarmWeek. “My goal is to have a centennial farm. We’re about three-quarters of the way there now.” Harms, the Illinois Pork Producers Association (IPPA), and a number of sponsors last week held an open house so neighbors and other interested parties could tour the new facility before pigs arrive and learn more about modern pork production. “We want to be good neighbors,” Harms said. “That’s our goal here.”
The building is tunnel-ventilated, which improves air flow and overall pig health. It is 296-by-122 feet in size (close to the size of a football field) and has large pens to provide plenty of room for pigs, which will have access to feed and water 24 hours per day. “The new hog barn has many technologically advanced features that increase the efficiencies of raising pigs but also will improve the welfare of pigs,” Harms said. “The (sorting gate system) will allow me to sort by sizes, so (the pigs) are not feuding with others.” In fact, a recent report by the Council for Agricultural Science and Technology (CAST) noted modern livestock production practices, provide precision nutrition, decrease the spread of disease, reduce animals’ contact with manure, and promote animal health and food safety. “We know healthier animals are better for the consumer,” said Tim Maiers, IPPA director of industry and public relations. “And these state-ofthe-art barns provide a chance to keep animals healthier throughout their lives.” The CAST report concluded managing animals indoors was a key to drastically reduc-
Patrick Harms helps his sons (left to right) Duke and Wyatt adjust a gate in a new 4,500-head, wean-to-finish hog barn the Harms family opened last week on their Livingston County farm. The new facility was designed to improve production efficiencies and animal welfare. Harms’ goal eventually is to turn the operation over to his children. (Photo by Daniel Grant)
ing the number of Trichinella spiralis-infected pigs in the U.S. and it also provides advantages to managing foodborne organisms such as campylobacter and salmonella. The Harms family, which grows corn and soybeans on about 2,000 acres and raises about 22,400 pigs, will use the manure as a value-added prod-
uct. It will be injected into their own crop acres as well as those of neighbors to offset fertilizer costs. The pigs in the Harms’ new facility will be raised under contract with Phil Borgic, a past IPPA president, who operates a sow farm in Montgomery County. “I have partnerships with
four other growers, which are valuable to me,” Borgic said. “It spreads my risk out.” Borgic said margins currently are tight in the hog industry, but if U.S. farmers raise a record corn crop this year as projected, hog producers likely will be back in the black because of reduced feed costs.
Calls to eliminate stalls labeled ‘business decisions’ The recent rush by some restaurant chains to call for the elimination of gestation stalls in pork production isn’t really an animal welfare issue, according to pork industry experts. The trend appears to be driven as much, or more, by what is perceived to be consumer demand as well as pressure from animal welfare groups. McDonald’s, Wendy’s, and Burger King the past two months unveiled new policies that will require its pork suppliers to outline plans to phase out gestation stalls. No timetable was set for the changes in pork production, although Burger King pledged 100 percent of its eggs will be sourced from cage-free operations by 2017. Safeway grocery last week also announced it will give preference to suppliers who phase out gestation stalls. “Those decisions are coming from executive boards,” said Dereke Dunkirk, presi-
dent of the Illinois Pork Producers Association. “I feel like some of the push is coming from what is perceived to be consumer wants, or by calls for action by people not associated with farms.” Janeen Salak-Johnson, animal scientist at the University of Illinois, said the recent calls to eliminate gestation stalls are “business decisions” backed by the Humane Society of the United States (HSUS). She is 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 sow injuries or lame animals. Dunkirk noted that animal husbandry practices, not housing systems, determine the level of animal welfare on each farm. “It’s not about what system (the animals) are living in. Therefore, each producer needs to decide what system works best on his (or her) farm.” The National Pork Producers Council (NPPC) believes much of the recent push to
eliminate gestation stalls has been driven by HSUS. HSUS owns stock in 52 companies so it can attend shareholder meetings and submit proposals for animal welfare policy, the Associated Press reported. “It seems that Burger King was bullied by an animal rights group whose ultimate goal is the elimination of food animal production,” NPPC said. But Jonathan Fitzpatrick, chief brand and operations officer for Burger King, said the company is dedicated to animal welfare.
“We continue to leverage our purchasing power to ensure the appropriate and proper treatment of animals by our vendors and suppliers,” Fitzpatrick said. Not all restaurants and food suppliers, however, are dictating production methods to suppliers. Domino’s this month rejected an HSUS resolution that proposed Domino’s require its pork suppliers to end the use of gestation stalls. Sysco, a food service provider, also offers pork suppliers a
choice of production systems. Domino’s supports the American Veterinary Medical Association and American Association of Swine Veterinarians position that gestation stalls are as appropriate as group housing systems for providing the well-being of sows during pregnancy. “We rely on animal experts to determine what is the best way to raise an animal that’s being used for food,” Tim McIntyre, Domino’s spokesman, told the National Hog Farmer. — Daniel Grant
U of I plans weed science research tours The 2012 University of Illinois Weed Science Field Day will be June 20 at the U of I Crop Sciences Research and Education Center, south of campus. Beginning at 8 a.m., coffee and refreshments will be available outside the Seed House at 2102 S. Wright St., Champaign. Similar to past years, participants will car pool to the fields, where they will join a guided tour of research plots and interact with weed science faculty, staff, and graduate students. Participants may compare their corn and soybean herbicide programs to other commercial programs and learn about new herbicide active ingredients. The tour will end about noon with lunch. The cost is $10, which includes a field tour book, refreshments, and lunch. Two hours of
Certified Crop Adviser credit are available under the integrated pest management category. Field research work continues at the DeKalb, Perry, and Brownstown research centers. There will not be separate weed science tours at those locations, but most of the weed science plots will have signs during their respective agronomy field days scheduled for these locations. In addition, a weed science field tour will be July 24 at the on-farm research location in northern Douglas County. The tour will feature presentations on various aspects of managing herbicide-resistant weed populations, with particular emphasis on managing herbicide-resistant waterhemp. For more information, call 217-333-4424.
FarmWeek Page 6 Monday, May 14, 2012
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had a dry week here in Northern Illinois, having missed all the heavy rains from the weekend of May 4-6. With only 0.1 to 0.2 of an inch of rain in the last two weeks, there was lots of planting progress. Corn planting is finished and soybeans are about 75 percent completed. Most of the corn that was planted in early April is finally up after a slow start because of the cool temperatures we had the last half of April. I have had fewer than 10 black cutworm moths in my trap every three days, and that is well below the threshold for a treatment. There have been very high numbers in some traps south and west of here. Pete Tekampe, Grayslake, Lake County: A beautiful day in Lake County on Friday for the second day in a row. It’s been awhile since the sun has shown two days in a row. Rain was in the forecast for the weekend. Corn is about 15 percent planted — none is up. Wheat is looking great. It looked Friday like we might get into the fields in the afternoon. Hopefully, the rain will go south, and we will be able to stay in the field. Leroy Getz, Savanna, Carroll County: Rain on Monday, May 7, of 0.5 of an inch slowed planting for a couple of days. Corn is emerging with great stands. Many soybeans already have been planted, but there are a great number of acres still to see a crop. Firstcutting hay is being made. Alfalfa weevils are hurting the quality, but harvesting is better than treatment. The frost-damaged hay seems to be hit the hardest, but weevil damage is everywhere. Winter wheat and spring oats look good. Wheat is in the boot stage. Ryan Frieders, Waterman, DeKalb County: Last weekend brought between 1.5 and 2 inches of rain to our area. The early part of the week was cloudy and overcast. Wednesday and Thursday were sunny. The corn is starting to grow. The first cutting of hay is being done. Fields that have not been worked are heavily infested with weeds. Some tillage needs to be done. As soon as the soil dries enough, corn planting in the area will be finished and soybeans will go in the ground. Larry Hummel, Dixon, Lee County: Not a very productive week here in Lee County with 1.75 inches of rain that kept everyone out of the fields until Wednesday, when a few areas nor th of Dixon star ted to dr y out and planters rolled. We found some ground dr y enough to spray on Thursday, but our planter is still waiting. About the only progress made on our farm was a grain bin that we are putting up. The roof is done and the rings are going on fast. If everything goes right, you should be able to go to {www.FarmWeekNow.com} and click on my repor t on Cropwatchers to see some pictures as work progresses. Joe Zumwalt, Warsaw, Hancock County: The corn in Western Illinois is really taking off. The last few days of warm, dry weather have let area producers get back into the fields and soybean planting is now in full swing. A continued dry forecast this week should allow a majority of the soybeans to be planted, but we will see what Mother Nature throws at us. Corn ranges in size from emerging to almost V-6. Early beans are putting on the first trifoliate, but there are not very many early soybeans around here. I have heard of very little insect problems in the area so no real concern there. The surprising story could be how soon wheat will be ready. I would guess by June 1 combines could be rolling in the wheat fields.
Ken Reinhardt, Seaton, Mercer County: Five to six inches of rain since April 27 stopped planting progress. Corn has emerged and what is left to plant will get finished in a few days. With a dry week forecast, soybeans will be about wrapped up by next report. Ron Moore, Roseville, Warren County: We received 1.1 inches of rain on May 6. That is a total of 3.8 inches since April 27 here and some locations had much more than that. The corn is looking very good and the early soybeans have emerged. We started planting soybeans again Thursday. We will have to wait for some of the wet areas to dry out before we start again. We should finish planting this week. Pasture conditions have improved greatly since the rain. Some hay was mowed last week. This is about two weeks ahead of normal for this area. Jacob Streitmatter, Princeville, Peoria County: No progress was made last week after the weekend (May 5-6) storms. Total rain I saw depended on the rain gauge, between 3 and 5 inches total. Way too much, but a lot better than some. Heaviest rain occurred across the river with reports of more than my rain gauge holds. Corn needs sunshine and dry weather now. Tim Green, Wyoming, Stark County: It was a relatively wet week. Rainfall totals were in the 5-to 7-inch range, depending on where you live. Corn is finishing up. Corn that is up looks pretty good, but needs a little warm weather. I hope it will hit the nitrogen and take off and get green. Some probably started planting soybeans over the weekend. We had water standing everywhere and water running, so we could be patient for a change. Mark Kerber, Chatsworth, Livingston County: Storms last week created planting delays. Rains were very spotty across the county, as some received 0.5 of an inch and others up to 3.5 inches. Most of the corn is up with pretty good stands in general. Once the ground dries out, soybean planting will continue at a rapid rate. This also will be a week to cut hay. The May government report tells us that the corn carryout is going to be larger. Summer weather again will be a key to price direction. New-crop corn is struggling compared to new-crop soybeans. Ron Haase, Gilman, Iroquois County: Some area farmers returned to the fields on May 5 and 6, but that activity was soon brought to an end by heavy rains. I planted about 50 acres before being rained out. It rained the afternoon of May 6 and early morning on the 7th. We received from 3.1 to 5.2 inches in two hard showers. Some neighbors had more. Other parts of Iroquois County had hail the size of baseballs, and another location had extensive damage done by strong straight-line winds. Many fields had lots of water on the surface. Because of the cooler weather hindering growth, it looks like there will not need to be much replanting done at this point. All the corn that we have planted has emerged except the 50 acres planted on the May 6. The most advanced corn is in the V-3 growth stage. While some soybean fields were planted in the county, I have not seen any fields near where I live planted or emerged. The local closing bids for May 10: nearby corn, $6.14; new-crop corn, $4.73; fall 2013 corn, $4.82; nearby soybeans, $14.40; newcrop soybeans, $13.25. Wilfred Dittmer, Quincy, Adams County: Another nice week here in our part of the state with only 1.3 inches of rainfall, which came a week ago Friday. Needless to say, machinery was mostly parked until a couple days ago. Corn is doing really well and only a few small hoppers have been seen in the grassy areas. We also had some of the pesky buffalo gnats. It still has been a very different spring.
Brian Schaumburg, Chenoa, McLean County: After a soaking rain, fieldwork resumed as farmers hustled to do tillage, plant, sidedress, and post-spray corn. Corn is at V-1 to V-5. Soybeans, except for those safely in the bag, are VE to V-1. Crop ratings can only be described as excellent. Planting progress is 98 percent on corn and 65 percent on soybeans. Scouting for cutworms and other problem insects has begun. Corn: $6.11; fall, $4.78; soybeans, $14.18, fall, $13.07; wheat, $5.48. Steve
Ayers,
Champaign, Champaign County: Meteorologist Greg Soulje described last week’s weather as “idyllic” and I would heartily agree. Rain early in the week of 0.7 of an inch followed by perfect temperatures, sunshine, and calm winds. We are planting beans into perfect seedbed conditions. In our crop reporting district, corn is 97 percent planted with 77 percent emerged. Soybeans are 24 percent planted with 3 percent emerged. Bug of the week is the black cutworm that is just now starting its feeding period.
Carrie Winkelmann, Tallula, Menard County: Corn is averaging V-2 to V-3 with 100 percent of it planted or replanted in our area. Some major soybean planting occurred last week. The beans we planted the last week of April look good with the bifoliate emerged. No measurable rain for the week. Lambsquarter looks to be the weed to kill this year, with the dry soil and low humidity working against our herbicide program. Tom Ritter, Blue Mound, Macon County: Last week was a gangbuster week with a good stretch of dry weather and farmers getting in the field last Tuesday. A tremendous amount of soybeans were planted. There was a slight chance of rain forecast for the weekend, but by the time you read this — if we avoid those showers — we should be approaching 70 percent complete on soybeans. Ground conditions have been excellent with adequate moisture and warm temperatures. Corn continues to grow and has good color. Corn is at varying heights depending on planting date. Some are sidedressing and post-application spraying their corn. A few beans have emerged, but they are very small. Overall, crop conditions look very good. The biggest concern remains the lack of subsoil moisture. Todd Easton, Charleston, Coles County: It was a very busy week for farmers, applicators, and everyone else working in the fields, as rains forecast for the weekend failed to materialize, making for perfect working conditions. In just the last five days, soybean planting leaped from barely started to more than half done in our area. Sprayers are finally getting their chance to apply herbicides to the flush of weeds the April showers brought on between rows of very good looking V-3- to V-5-maturity corn plants. Side dress applicators also are getting a start on nitrogen applications. This week should see the majority of planting completed — not bad. Last but not least: Thank you to all the mothers bringing out delicious field meals, supplies, and tending the farmsteads while the long hours get worked in the fields. Jimmy Ayers, New City, Sangamon County: When I was reporting on May 4, we received 1 inch of rain, which brought total rainfall to 4.1 inches for the previous week and a half. There wasn’t a lot of work that went on until later in the week last week because it was wet and cool. A few were trying to plant beans, and quite a few were spraying in different areas. Some corn has a yellow cast while other corn has hit its nitrogen. Beans are looking pretty decent at this time. Several of my neighbors are done planting beans. It appears it is going to dry up here, and a lot of activity will resume. I hope everyone enjoyed Mother’s Day.
Page 7 Monday, May 14, 2012 FarmWeek
CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: On May 7, parts of northern Shelby County received 1.5 to 2.5 inches of rain. We received nothing. Some beans were going in the ground and some corn was being replanted toward the middle of last week. The government found corn again, but the processors must be having a harder time finding it with basis levels at plus-60 for cash corn in Decatur. Beans took a 60-cent hit last week but are still at $14.68 in Decatur. Corn is $6.48. We cut hay last week and for the first cutting, quality was good. The wheat crop is two weeks ahead of schedule, but the rust has spread to the flag leaf so I am afraid yields will be a disappointment. I am sure most wheat acres will be double cropped with beans. With the forecast, beans will be done by next weekend. David Schaal, St. Peter, Fayette County: Farmers returned to the fields around the area on Wednesday or Thursday to continue planting or start replanting. Some producers who were done with corn are planting soybeans in the northern and western parts of the county. I hope the weather holds so field operations can continue. It seems that we have been sitting here in a small, wet area. Grain prices took a downward turn last week. Jeff Guilander, Jerseyville, Jersey County: It is starting to dry out and many of us are trying to decide whether to start over, spot in, or just hope for the best. The good thing is the corn crop is growing fast so we will not have to dwell on it too long. Lots of sprayers are moving and even some sidedress is going on. Soybean planting also is gaining strength and the ones planted in April are up and can be rowed easily. Looks like this year is getting its second wind and most are taking full advantage. If the weather man is right this week, we will have some farmers wrapping up planting and moving on to maintaining the crop. With the mild winter and heavy rains we’ve had, that could be easier said than done. Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com
Dave Hankammer, Millstadt, St. Clair County: This past week, the weather changed from unusually warm to more normal spring-like conditions. After a cool front moved through the area on May 6, we received up to 1 inch of rain in the western part of the county. The temperatures returned to highs in the 70s and the lows in the upper 40s. This past week, I saw a farmer replanting a field of corn that had a poor stand due to the extended cool, wet conditions the area experienced in late April. Some farmers are starting to plant soybeans while others are finishing planting the corn crop. We were able to return to the fields last Wednesday and did some tillage. The earliest-planted corn in the area is about 6 inches tall and looks in good condition. The wheat crop in the area is looking good and judging by the changing color of the fields, farmers will have an early wheat harvest. Produce growers in the area have been promoting their strawberries for more than a week. The strawberry season is about two to three weeks earlier than last year. Local grain bids are: corn, $6.05; soybeans, $14.36; wheat $5.93. Rick Corners, Centralia, Jefferson County: I thought after all of these years I’ve been playing this farming game, that I knew a little something. But after last year and the start of this year, I’ve decided I don’t know anything. Corn planting is about down to the short rows now, and I see bean seed buggies are starting to appear. These cool nights probably are not good for bean emergence, but like I said, what do I know? Some wheat looks really good and some looks like disease has hit it. Kevin Raber, Browns, Wabash County: Rainfall amounts of 1.5 to 2.3 inches came on May 4 and 5. Most of it came in a short time, so there was some ponding. I may have to spot in a few beans in several low areas. Cooler days and nights have slowed crop development, but everything is looking better than it has for several growing seasons.
Dean Shields, Murphysboro, Jackson County: Last week the weather was a little on the nicer side. We got a shower that went through my immediate area with 1 to 1.25 inches of rain in some places and none at all in others. Jackson County is dry overall and we need a rain. Corn planting is pretty well done. Soybean planting is coming along very well. A lot of the soybeans popped out of the ground this past week. The wheat crop is looking good, and it is getting a little color change to it right now. It seems to be pretty well disease-free because of the lack of rain and dryness. One note in Jackson County: From what I understand from several of the growers, we have a very good strawberry crop this year. Randy Anderson, Galatia, Saline County It was a very busy week on the farm. Sidedressing corn, cutting hay, planting a few beans, and postspraying corn. Corn stands overall are better than I expected. Bean planting has probably reached 80 percent. Scouted some of my own wheat, and there is some signs of freeze damage on the heads. I applied a fungicide to my wheat and left some tests strips. The untreated strips are showing some disease pressure. Ken Taake, Ullin, Pulaski County: Dry — that pretty much sums it up in a word here on Taake Farms in Southern Illinois. We had some storms go through last Sunday (May 6), but we received a little less than 0.2 of an inch of rain. Amounts across Pulaski County range from more than 2 inches to some who received no rain at all. I guess we should be thankful for what we received. We finished sidedressing our corn last week and are in the process of applying our corn post chemicals. We are planting our last field of soybeans that we are going to plant until we finally get some rain. Soybeans progress in the area ranges from people who are finished to those who are just getting started and are waiting for rain. It all just really depends on the soil moisture. Seems like it’s going to be another challenging planting season here in Pulaski County.
Winter wheat production up nationwide, down in Illinois BY DANIEL GRANT FarmWeek
The Illinois winter wheat crop is expected to yield 1 bushel per acre better than last year (62 bushels per acre this year compared to 61
FarmWeekNow.com Check Cropwatchers for pictures of the flooding in northern counties at FarmWeekNow.com.
bushels in 2011), but the size of the 2012 crop likely will be smaller than a year ago. T h a t ’s b e c a u s e w h e a t growers in the state this year are expected to har vest 630,000 acres of wheat compared to 765,000 last year. “The wheat crop overall looks as g ood as any I’ve seen in the 24 years I’ve been in Extension,” said Robert Bellm, University of Illinois crop systems educator at the Brownstown Agronomy Research Center. “We are ahead of schedule by probably a couple weeks. I suspect harvest could start in early June.” U S DA l a s t w e e k i n i t s
monthly crop production report projected Illinois farmers will harvest 39.06 million bushels of wheat, down 16 percent from a year ago. Nationwide, however, winter wheat production was forecast at 1.69 billion bushels, up 13 percent. The national average yield was projected at 47.6 bushels per acre. The boost in U.S. production is expected to be more than offset by an increase in demand. USDA increased its estimate of feed and residual use of wheat by 50 million bushels. Ending stocks of wheat for 2012/13 were pegged at 735 million bushels, down 33 million bushels from last year. “I’d say carryout is going from burdensome to morethan-adequate,” said Jerrod Kitt, market analyst with Linn Group, during a webcast last we e k h o s t e d by t h e C M E Group. In Illinois, some wheat growers have reported numerous outbreaks of striped r ust, according to Bellm. But he doesn’t expect the
localized cases of disease to have a major impact on yields. “Typically, we worry about (head) scab the most,” he continued. “And this year, with the weather conditions (dry and cool in April), I don’t project scab will be a
huge problem.” Overall, USDA last week rated the condition of the state’s wheat crop as 80 percent g ood to excellent, 16 percent fair, and 4 percent poor or very poor. Eighty percent of the crop was headed as of April 30,
compared to the five-year average of 6 percent. Members of the Illinois Wheat Association on Tuesday will gauge disease pressure and estimate yields when the association hosts its annual Southern Illinois Wheat Tour.
FarmWeek Page 8 Monday, May 14, 2012
environment
Three watersheds in new water quality initiative Sign-up Tuesday through June 15 BY KAY SHIPMAN FarmWeek
Watersheds in Eastern, Southeastern, and Southwestern Illinois were selected for a new USDA water quality initiative, State Conservationist Ivan Dozier announced last week. Under the National Water Quality Initiative, each state selected one to seven watersheds with water quality problems, U.S. Agriculture Secretary Tom Vilsack and Natural Resources Conservation Serv-
ice (NRCS) Chief Dave White said in a teleconference. Nationwide, 157 watersheds were selected. USDA’s goal is to produce measurable results from the applied conservation practices, Vilsack stressed. The watersheds selected had monitoring programs and/or background information that would allow improvements to be measured, he explained. The Illinois watersheds are: • Douglas Creek Watershed over 14,300 acres in St. Clair County; • Crooked Creek-BonPas
Watershed over 33,266 acres in parts of Edwards, Lawrence, Richland, and Wabash counties; and • Lake Vermilion Watershed over 17,656 acres in Vermilion County. In Illinois, 5 percent of the environmental quality incentive program (EQIP) funding will be used for the initiative. Eligible farmers and landowners may apply for financial and technical assistance to use such conservation practices as filter strips, cover crops, and nutrient management plans. Dozier pointed out the
three watersheds have water quality problems that can impact drinking water supplies, flooding and erosion damage, and wildlife habitat. White and Vilsack emphasized the Environmental Protection Agency (EPA) is a partner in the effort along with other groups and entities. “This is an opportunity for us (USDA and EPA) to work together ... and hope we get a bigger bang and a concentrated bang for the buck,” Vilsack said. In Illinois, local governments, agencies, and organiza-
tions will assist with the watershed efforts. Those partners include the City of Danville, the Lake Vermilion Water Quality Coalition, St. Clair County Local Working Group, Southwestern Illinois Resource Conservation and Development group, Pheasants Forever, and several county soil and water conservation districts. Eligible landowners and farmers should contact their local NRCS office before the June 15 deadline. All applicants will be notified this summer about the results.
IFB, others seek role in nutrient/water lawsuit BY MARTIN ROSS FarmWeek
Illinois Farm Bureau has joined with other ag groups nationwide to challenge proposed expansion of federal regulatory reach into the Mississippi River Basin. IFB filed a motion last week seeking to intervene in a federal lawsuit that purported-
ly could complicate farmers’ ability to effectively manage their operations. The motion included the American Farm Bureau Federation (AFBF), 13 other state Farm Bureaus, and 16 other national and regional ag groups. The case, Gulf Restoration Network et al. vs. Jackson, seeks to force the U.S. Envi-
ronmental Protection Agency (EPA) to override existing state water quality standards with federal numeric nutrient limits. That could lead to more costly runoff controls in the 31-state Mississippi River Basin. “Any court order requiring EPA to issue new numeric standards and total maximum
daily (nutrient) loads (TMDLs) would directly affect the livelihood and productive capabilities of Farm Bureau members by increasing the costs associated with developing and implementing nutrient management plans,” IFB President Philip Nelson warned. The suit has been filed in eastern Louisiana district court. EPA had not yet filed
Farm Bureau’s concerns focus not on the merits of narrative vs. numeric standards (though the latter are more stringent) but instead on whether EPA should set them, AFBF senior counsel Danielle Quist told FarmWeek. “The problem is in setting the numbers correctly,” Quist said. “It often turns very political, and people tend to want
‘EPA just hasn’t proven its up to setting these standards, much less setting them for an entire basin.’ — Danielle Quist American Farm Bureau Federation Policy senior counsel
its answer to the complaint. Concerns about possible Mississippi River Basin standards have heightened with controversy surrounding EPA’s nutrient standards for the eastern Chesapeake Bay. The current suit follows a recent district court ruling that deemed EPA-imposed numeric nutrient criteria for Florida streams and lakes arbitrary, lacking scientific basis, and thus unlawful. The federal Clean Water Act allows states to use either numeric or “narrative” standards as a method for determining water quality. Most Mississippi River Basin states employ narrative standards, which mandate that no nutrients may occur at levels that cause a harmful imbalance in aquatic biology. The current suit seeks EPA imposition of numeric standards for those and other states, as well as a nutrient TMDL for the entire region.
to just get the most stringent numbers whether or not they’re achievable and whether or not they’re the right ones. “Some states set numeric standards, and farmers and everyone else impacted by them work with the states. Major sections of (EPA’s Florida standards) were thrown out as not done right. EPA just hasn’t proven its up to setting these standards, much less setting them for an entire basin that represents about 40 percent of the U.S. land mass.” Illinois farmers work with state agencies and groups to manage nutrient runoff, Nelson noted (see story above). Farms implement nutrient management plans to comply with point source discharge permit requirements, while livestock operations that do not hold permits implement plans under additional state laws designed to limit runoff, he stressed.
Page 9 Monday, May 14, 2012 FarmWeek
rural health
Health pros recognizing special ag circumstances BY MARTIN ROSS FarmWeek
Until recently, nurse practitioner Rebecca Merten knew little about pesticides. Her knowledge of “farm” production was limited to a collection of grapevines she and her husband have attempted to cultivate. Merten, a family practice nurse with the Altamont Clinic in Effingham County, has come to understand the staggering range of health conditions that are “specific and particular” to farmers and ag workers and, sometimes, their families. In June, Merten will attend a University of Iowa College of Public Health occupational and environmental health course that targets rural health professionals. Once she has completed the course, her clinic can qualify
for certification as an “agricultural medicine center” able to provide added safety training and educational programs throughout the region. “Even though farmers have all the ‘illnesses’ everyone else does, they have a few illnesses and injuries that are specific to them,” Merten told farmWeek at an Illinois rural health conference in Effingham. By closing the ag information gap, rural hospitals and clinics can save lives and, in some cases, precious health care dollars. For example, one responder at the conference noted the calamity that could have ensued had the victim of a recent anhydrous ammonia “splash” been transported directly into his local hospital’s emergency room. In a case like that, “the whole
Toy chest a tool chest for trauma coordinator As trauma services coordinator with Urbana’s Carle Foundation Hospital, Mary Beth Voights has access to cutting-edge, lifesaving technology. So what if the clinical nurse specialist and Streator-area farmer sometimes dips into her son’s toy chest for some less sophisticated training technology? Scaling the basics of ag safety down for emergency responders and medical providers is one of Voights’ key educational strengths. She has taken some time from medical duties to help put crops in the ground, though weekend rains kept her out of the field last week. The Voights’ corn is “all in” (though some replanting may be necessary), while soybean planting has been delayed for a bit. Thanks to Carle’s Center for Rural Health and Farm Safety, “(ag) awareness among my colleagues has grown multi-fold,” Voights said. Her own training arsenal includes some unorthodox tools — her son’s toy farm equipment. Most surgical training is based in metropolitan areas, and unless doctors have had personal exposure to farming, “they often have no concept of what these implements are or what forces are involved with them,” Voights told farmWeek. Farm toys, often built with scrupulous detail, offer a reliable model for explaining machinery risks, she said. “I always offer (Carle staff) an opportunity to come ride with us in the field,” Voights added. “One of our surgeons came out and rode with me while we were combining. “We give them an education about what we’re talking about. When a call comes in that (equipment) hydraulics have failed and the patient’s been pinched by a cultivator, they understand what that means and what forces have been exerted on tissues that ultimately cause the traumatic injury.” Voights also tries to relate ag “mechanisms of injury” to hazards that urban colleagues understand. Her “students” have included Carle’s long-term trauma director, whose first major trauma case occurred at Champaign County’s 4-H Fair a block from the hospital. A steer had fallen on a 9-year-old exhibitor. With about five minutes to patient arrival, the trauma team assembled, and Voights alerted the director, a former Cook County medical resident then-unfamiliar with bovine dynamics. “He said, ‘Is this a joke?” Voights recalled. “He’s thinking, this is how we initiate city boys at the country hospital. I said, ‘This is not a joke. Consider it a 1,000-pound crush injury, like a punch press industrial injury.’ He said, ‘Oh.’” — Martin Ross
emergency room becomes a hazmat (hazardous materials) circumstance,” he warned. Fortunately, the ER director recognized the health and medical contamination risks of allowing the patient to enter the ER without first washing him at an outside staging area. “I would have done it wrong,” the responder admitted. Merten notes two classes of ag-related health concerns that demand provider attention. Injuries such as a tractor turnover or concentrated pesticide exposure often require specialized treatment by first responders. Chronic conditions related to ag labor or extended contact with chemicals, dusts, gases, or livestock can develop gradually and escape detection for years.
Farmers can develop hidden respiratory problems over prolonged periods of seemingly low-level exposure to chemicals or organic dusts. Thus, a producer who appears “pretty much OK” in a routine exam may suffer a lifethreatening respiratory episode during harvest, tillage activity, or confinement house cleanout, Merten said. “Zoonotic” diseases affect multiple species but may produce different symptoms in humans and livestock. In cases in which a patient exhibits severe gastric distress, fever, or unexplained rashes, a quick check of species on the farm may help emergency responders on site and doctors outside the scene reach an accurate diagnosis and course of treatment.
Farmers themselves can improve the quality of care through careful observation and anticipation of farm risks. Some manure pit gases are heavier, meaning workers may be or at least feel safe until reaching the bottom of a pit. Others can paralyze olfactory (scent) cells, rendering a worker unable to detect gaseous odors before he is overcome. Prickly heat can result from clogged sweat glands in hot, moist environments. But insect or spider bites or stings can spur toxic or allergic reactions with similar symptoms. “Hot, red, and swollen can also mean infectious,” Merten warns farmers tempted to dismissing aches, pains, and rashes they associate with rigorous field labor.
Safety 1-2-3: confined SpaceS Grain bins, manure pits, and other confined spaces pose key safety risks. It takes but a matter of seconds for a farmer to become trapped in flowing grain and suffocate. Farmers can succumb to odors from a manure pit or carbon monoxide fumes in a poorly ventilated shop. Here’s a safe space checklist: • Are ground-level entrances secured against entry by unauthorized personnel or children? Are side ladders solid, secure, and mounted five feet from the ground to limit access by children? Are portable ladders removed after use? • Are warning signs posted to warn of gases or low oxygen levels? Are workers made aware of hazards of flowing grain entrapment, crusted grain, oxygen deficiency, or gases?
• Are shields in place on grain unloading mechanisms? Can power be locked out so they can’t be started by accident? • Are original facilities free of structural problems and equipped with ladder safety cages to prevent falls? • Are fall-arrest/harness systems used to reduce grain drowning risks and aid rescue efforts? In case of emergency, is a partner stationed outside when entering a danger area? • Are respirators used when handling moldy hay/grains when grain dust or dangerous gases are present? • Do you ever enter a silo or manure pit where gas may be present or where there may be an oxygen deficiency? Do you always avoid entering a manure pit for any reason?
FarmWeek Page 10 Monday, May 14, 2012
energy
Bipartisan biofuels counterattack mounting BY MARTIN ROSS FarmWeek
U.S. Reps. John Shimkus and Eliot Engel may find little common ground in this or any other congressional session. That the downstate Illinois Republican and the New York City Democrat are fighting for renewable fuel development provides a vivid demonstration of continued congressional support even amid sustained attacks on biofuels mandates. In a “Dear Colleague” letter circulated on the Hill last week, Collinsville’s Shimkus and House Ag Ranking Democrat Collin Peterson (D-Minn.) refuted contentions that the federal Renewable Fuel Standard (RFS2) is a “‘broken policy’ that has failed to live up to its potential.” Under the RFS2, the U.S. Environmental Protection Agency (EPA) will require 36 billion gallons of U.S. biofuels use by 2022. But as corn ethanol advances rapidly
toward its long-term 15billion-gallon RFS2 target, some lawmakers propose eliminating or placing conditions on Rep. John Shimkus the standard that could chill investment in next-generation “advanced biofuels.” “As originally envisioned by Congress,” RFS2 was designed to improve U.S. energy security, reduce consumer fuel prices, stimulate the economy, and improve the environment, Shimkus and Peterson stated. Today, the ethanol industry, across 29 states, supports 400,000 high-paying jobs “that can’t be outsourced,” taps grain from American farmers, and “pay(s) local, state, and federal taxes,” they argued. The pair, armed with a seven-page RFS2 “fact sheet,” laid out a compelling
case, National Renewable Fuels Association CEO Bob Dinneen said. He highlighted the conservative Shimkus’ Bob Dinneen partnership with New York’s generally liberal Engel in support of the Open Fuels Standard Act, which proposes a diversified approach to energy security with incentives for alternative/hybrid vehicles. “It’s not a mandate for ethanol; it’s not a mandate for natural gas vehicles; it’s not a mandate for electrical vehicles,” Dinneen emphasized in an RFD RadioFarmWeek interview. “Rather, it’s saying, ‘Let’s stop mandating gasolinepowered vehicles.’ “You have two sponsors here who probably would agree on no other bill that could come before Congress this year but agree on this
because of the national security imperative, the need to give consumers options at the pump, and the need to reduce our growing dependence on foreign oil. I think that tells you something about the future of this legislation.” When the Renewable Fuels Standard was created in 2005, the U.S. was 60 percent dependent on foreign oil,” he said. Since then, with expansion of the standard in 2007, reliance has dropped by 15 percent, with ethanol accounting for roughly 80 percent of the nation’s “new” fuels, Dinneen stressed. Rather than scaling back the RFS2, he urged Congress to consider “expanding it
and making it more meaningful.” EPA has been cautious in setting 2013 cellulosic ethanol targets; Dinneen argued next-generation ethanol introduction is “purely a commercial scaleup issue,” and that finance, not technology, is the chief obstacle to that scale-up. He noted reservations about corn ethanol potential when the 2005 law set a 7.5billion-gallon ethanol target for 2012. The corn-based industry reached that capacity by 2006. “It’s really important as investment is beginning to flow to this sector and technologies are being proven that we continue this policy (RFS2) that has proven to be so successful,” Dinneen said.
Bloomington motorists have new options, courtesy of a “flex-fuel” gasoline blenders pump installed recently at a local Qik-n-EZ (QE) retail outlet and displayed here by QE manager Bill Atkinson. Illinois boasts 21 blender pumps, which dispense multiple blends for use in E85 (85 percent ethanol-capable) vehicles (photo below). Blender pumps should help set the stage for E15 use in 2001 and newer vehicles, as soon as regulatory requirements for and political hurdles to its adoption are successfully addressed. (Photos by Martin Ross)
Page 11 Monday, May 14, 2012 FarmWeek
“It’s been a great experience for me. I’ve been able to interact with a lot of producers from around the state who are the best at what they do and learn from them.” Mike Marron, Soy Ambassador
“The Soy Ambassador program is a great way for the next generation of farmer-leaders to follow the Illinois Soybean Association board through the process of building relationships and building coalitions.” Jerry Gaffner, Soy Ambassador
“I think it is an excellent program for younger farmers like me. It exposed me not only to farming in Brazil, but also how the Illinois Soybean Association board of directors and staff work together to improve our industry.” Sean Kinsella, Soy Ambassador
“The Soy Ambassador program has been unique, especially for the all varied experience we have gained, whether it was traveling to Chicago or learning about aquaculture. It’s sort of like being part of the board, without having to make decisions yet.” Rob Prather, Soy Ambassador
Funded by the Soybean Checkoff
FarmWeek Page 12 Monday, May 14, 2012
specialty groWers
Second year: New farmers putting lessons to the test BY KAY SHIPMAN FarmWeek
Editor’s note : Farming skills and knowledge are accumulated over time. How does someone who is new to farming handle the challenges based on one year’s experience? FarmWeek reports on two new specialty growers who received grants channeled through Annie’s Project and periodically will follow their second year in farming. Many farmers, based on their years of experience,
FarmWeekNow.com Check out how new specialty crop growers are doing in their second year of farming at FarmWeekNow.com.
realized the spring of 2012 was unusual. But to two women starting their second year as farmers, this spring has been “crazy.” “This year I had people telling me, ‘Plant, plant.’ And other people telling me, ‘No, there will be a frost.’ We did get a frost or two, so I didn’t plant new things,”
said Terry Neutz Hayden, a Piatt County Farm Bureau member from Monticello. Her farm website is {www.twinsilosfarmmonticello.com}. “This spring it’s been so drastic — 70 and 80 (degrees) — and then a frost. It’s been crazy,” added Raylene Roberts, a Knox County Farm Bureau member from Knoxville. Last year Neutz Hayden and Roberts each received a one-year grant for women Both grew specialty crops and spent the winter planning for their second growing season with adjustments based on what they learned. Neutz Hayden learned the natural 5.2 pH soil test levels on a different part of her field would be better for her blueberry bushes than where they had been planted. She plans to transplant them to the new area. “Why fight it?” she said. Roberts said she will continue growing heirloom tomatoes along with other vegetables, but plans to scale back on
Piatt County Farm Bureau member Terry Neutz Hayden examines new blueberry bushes she will plant on her farm near Monticello. In her second year of farming, Neutz Hayden plans to transplant some berry bushes into the rows in background after learning the soil’s natural pH levels is better suited for those specialty crops. (Photo by Cyndi Cook)
the number of varieties to focus on certain ones, such as cherry tomatoes. Each woman gained new
information over the winter and will apply it during the growing season. Pointing to a broken Gala apple tree, Neutz Hayden said she is eager to try a three-stake system around young apple trees to keep deer from damaging the branches and the trunks. Another grower told her the deer won’t bother the trees with stakes because the animals don’t want to get their antlers stuck. She plans to try a bloodmeal scent to keep deer from her strawberries. After talking with a flower grower at a University of Illinois Extension round-
table, Roberts said she explored the idea of selling cut flowers to local florists and at farmers’ markets. She also received seeds for hundreds of flowers from another grower. “I’m a flower nut,” Roberts said with a laugh. Both women described their ambitious plans to plant and replant many seedlings, bushes, and trees. Their second spring in farming already has brought surprises, such as the tiny strawberries Neutz Hayden uncovered last week. “My farm is like a big science experiment. I like that,” Roberts concluded.
Knox County Farm Bureau member Raylene Roberts works in her Knoxville greenhouse. Roberts plans to add cut flowers to her heirloom vegetable and fruit crops in her second year as a farmer. (Photo by Ken Kashian)
Page 13 Monday, May 14, 2012 FarmWeek
from the counties
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OOK — Farm Bureau will sponsor a stroke detection screening Tuesday at the Farm Bureau office, 6438 Joliet Road, Countryside; and Wednesday at the Country Financial office, 2435 W. Schaumburg Road, Schaumburg. Members may save up to $35 for the screenings. Call 877-732-8258 for an appointment or more information. • Farm Bureau has soil testing kits available. Soil testing prices are based on the soil sample test lab cost. Call the Farm Bureau office at 708-354-3276 for a kit or more information. • Farm Bureau will sponsor an information workshop at 7 p.m. Thursday, June 7, at the Orland Park Country Financial office, 9731 W. 165th St., Suite 36, Orland Park. Preparing wills and trusts, as well as transferring nontitled property will be discussed. There is no charge for Farm Bureau members to attend. Call the Farm Bureau office at 708354-3276 by Friday, May 25, for reservations or more information. RUNDY — The Grundy County Farm Bureau Foundation and the Morris Downtown Development Partnership will sponsor the Liberty 5K Liberty Run/Walk at 4:30 p.m. Tuesday, July 3. The 5K will begin at Liberty Street, Morris. A 1/4 mile kid’s fun run for children 8 and under and a 1 mile kid’s fun run for those 9-13 will be available. Cost is $25 if paid by June 29 and $30 is paid on race day. The kid’s fun run is $5 and payable on race day. A prerace deadline party will be from 5 to 8 p.m. Friday, June 29, at Ebbey George’s Sports Bar and Grill, Morris. For more information or a brochure, contact Morris Downtown Development Partnership at 815-941-0245 or the Farm Bureau office at 815942-6400. Applications also are available on the website {www.downtownmorris.com}. AMILTON — Hamilton, Wayne, and White County Farm Bureaus, along with University of Illinois Extension units will sponsor two “Leasing Farmland for Oil and Gas Production” meetings Tuesday, May 22. The first will be at 9 a.m. at the Junior-Senior High School, McLeansboro; and the second at 6 p.m. at the First Christian Church, Fairfield. Clif Little and Chris Penrose, Ohio State Extension educators, will be the speakers. Call the Wayne County Farm Bureau office at 618-842-3342 for reservations or more information. NOX — Henry, Knox, Mercer, Stark, and Warren-Henderson County Farm Bureaus will sponsor three “Ag in a Day” teacher workshops at the following dates and places: June 11, Galesburg; June 12, Alpha; and June 13, Kewanee. Workshops will include hands-on activities, games for classrooms, kit give-aways, and farm tours.
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There is no charge to attend. Deadline to register is Tuesday. Call the Mercer County Farm Bureau office at 309-582-5116 for reservations. Visit the website at {www.knoxcfb.org} for more information. • The Kids Farm Safety Camp for youth 8 to 13 will be from 8:30 a.m. to 2:45 p.m. Saturday, June 23, at the Knox County Fairgrounds. Topics will include fire, grain, PTO, and fire safety and emergency preparedness. Participants will receive lunch, snacks, a T-shirt, and a goody bag. There is no charge to attend. Call the Farm Bureau office at 309-342-2036 or go online at {www.knoxcfb.org} to register. EE — Farm Bureau has tickets for the Clinton Lumber Kings and Quad Cities River Bandits baseball games. Ticket price is $3 for the Clinton Lumber Kings and $6 for the Quad Cities River Bandits. Call the Farm Bureau office at 815857-3531 or e-mail leecfb@comcast.net for more information. ADISON — Farm Bureau will sponsor a master grain agreement meeting at 7 p.m. Tuesday, June 5, at the Farm Bureau office. Grain contracting arrangements will be discussed with Jerry Quick, former Illinois Farm Bureau senior counsel, who drafted many grain purchase and sale contracts. Call the Farm Bureau office at 618656-5191 for reservations or more information. EORIA — Stroke Detection Plus will sponsor a health screening Wednesday, May 23, at the Farm Bureau office. Members will receive a discount on all four screenings. Call 877732-8258 for an appointment. • A tractor drive will be Saturday, June 23, as part of Farm Bureau’s 100th anniversary celebration at the Shoppes at Grand Prairie. Reservation forms are in the “Farmer” newsletter and at the website {www.peoriacountyfarmbureau.org}. Deadline to return reservations to the Farm Bureau office or Frank Learned is Friday, June 1. • The Legislative Committee will sponsor a bus trip Thursday, June 28, to Springfield. Participants will visit the Executive Mansion, Old State Capitol and the current capitol, Illinois Department of Agriculture building, and a farmers’ market. Cost is $40, which includes lunch at the Golden Corral. TARK — A tractor drive will begin with a breakfast at 7:30 a.m. Saturday, June 2, at the Farm Bureau office. Tractors will leave the Farm Bureau office at 9 a.m. Lunch will be at 11:30 a.m. Cost is $30, which includes breakfast and lunch. Proceeds will benefit the Stark County Farm Bureau Foundation. Advanced registration is required and forms are available at the Farm Bureau office. Call the Farm Bureau office at 286-7481 for more information.
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IFF ‘field moms’ to try hand as soybean farmers Growing soybeans will be the next experience for the Chicago-area “field moms” involved with Illinois Farm Families (IFF). The nine urban moms will grow their own soybeans in their backyards and on their patios to learn what it takes to grow one of the state’s most important crops. They also will oversee an acre of commercially grown soybeans. The Illinois Soybean Program Operating Board is taking the lead on the moms’ soybean project. Ron and Deb Moore of Roseville in Warren County will advise the moms and use one of their 600 soybean acres as a field moms’ acre throughout the growing season. The moms are to plant their own soybeans on the same day the Moores plant theirs. The city soybeans are to receive water only on the days that the Moores’ acre receives rain. The Moores and the moms will compare the progress of their respective crops via online video chats. During the growing season,
the moms also will learn about soil conditions, pest control, and the cost to raise and mar-
ket a crop, including the costs of seed, fuel, and transportation. They will tour their Roseville acre on June 9. Once the field moms’ acre has been harvested, the Moores and the moms will donate that acres’ profits to charity. IFF is a coalition of commodity groups for beef, corn, soybeans, pork, and the Illinois Farm Bureau.
In Pontiac
Enbridge pipeline meeting set
Enbridge Energy has announced plans to expand its pipeline system from the Flanagan South facility (north of Pontiac) to Cushing, Okla. Enbridge soon will be contacting landowners to begin easement negotiation discussions. Livingston County Farm Bureau will be hosting a meeting with interested landowners/tenants to discuss agriculture issues as it relates to easement negotiations and options available. An attorney from Illinois Farm Bureau will
discuss landowner options and answer questions relative to this issue at a meeting at 7 p.m. Thursday, May 31, at the Livingston County Farm Bureau building, 901 W. Howard Street, Pontiac. Call the office at 815-8421103 or e-mail tvlcfb@frontier.com for reservations to ensure enough hand-outs for participants.
FarmWeek Page 14 Monday, May 14, 2012
proFitability
Record corn crop could sink prices; soybean outlook bullish lion bushels from last year. The previous record was 13.1 billion bushels in 2009. Ending stocks as a result were projected to skyrocket in 2012/13 to 1.9 billion bushels. Ending stocks for 2011/12 also were raised, by 50 million bushels, to 851 million bushels due to increased competition from feed wheat.
BY DANIEL GRANT FarmWeek
USDA last week in its monthly crop report surprised traders when it predicted record corn production that would crush previous output totals. Corn production this year was projected to total a record 14.8 billion bushels, up 2.4 bil-
USDA
Farm Service Agency Supplemental revenue assistance program (SURE): Sign-up for 2010 losses runs through June 1. The Supplemental Revenue Assistance Program (SURE) provides benefits for farm revenue losses due to natural disasters that occurred during the 2010 crop year. SURE is available to eligible farmers on: • Farms in counties with disaster declarations from the ag secretary, including contiguous counties, that have incurred crop production or quality losses, or both, and includes all crops grown by a farmer nationwide, except grazed crops. • Any farm in which, for the crop year, the actual production on the farm because of disaster-related conditions is 50 percent or less than the farm’s normal production. DCP/ACRE sign-up: 2012 Direct and Countercyclical Program (DCP)/Average Crop Revenue Election (ACRE) program enrollment will end June 1. All farmers with an interest in DCP base acres must be included on the DCP/ACRE contract and receive a share of DCP/ACRE payment for the farm. All farmers receiving a share greater than zero on the DCP/ACRE contract must sign the contract no later than June 1. Changes on the farm after enrolling in DCP/ACRE must be reported to your local FSA office. Those include: ownership changes, farmer changes (individuals and entities), and change in crop-shares arrangement. Note: Changes to 2012 DCP/ACRE contracts cannot be made after Sept. 30.
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 $29.40-46.00 n/a no longer reported This Week 104,965 *Eastern Corn Belt prices picked up at seller’s farm
Weighted Ave. Price $38.97 n/a by USDA Last Week 84,929
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $73.82 $74.81 $54.63 $55.36
Change -0.99 -0.73
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 119.17 120.00 -0.83 120.00 120.71 -0.71
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 148.71 147.85 -0.86
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 110-160 lbs. for 140-166.80 $/cwt. (wtd. ave. 152.40).
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 05-03-12 10.0 24.1 29.3 04-26-12 15.7 19.8 25.1 Last year 7.7 37.1 30.6 Season total 1099.3 940.4 1109.2 Previous season total 1366.5 1167.5 1191.1 USDA projected total 1275 1000 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
“If we bring in this big crop, we could put a five or even a four in front of the corn price,” said Jerrod Kitt, market analyst with the Linn Group, during a webcast hosted by the CME Group. “End users might be interested in restocking bins.” USDA forecast a season average corn price in 2012/13 of $4.20 to $5 per bushel. If realized, it would be a significant price drop from the 2011/12 average price range of $5.95 to $6.25. A key factor to the expectations of a massive corn crop is the fact USDA estimated an average yield of 166 bushels per acre. The projection is 2 bushels above the 1990 to 2010 trend yield and 19 bushels above last year’s average yield of 147 bushels. “That was a surprise (USDA) pushed it up again,” Jerry Gidel, market analyst with Rice Dairy, said of the corn yield estimate. “With early planting (the corn crop) has
good potential, but we have a long season ahead.” In other bearish news to the corn market, USDA increased
FarmWeekNow.com To v i e w t h e C M E G r o u p ’s c r o p r e p o r t w e b i n a r, g o t o F a r m We e k N o w. c o m .
its corn production estimate in Brazil by 5 million metric tons (195 million bushels). The corn market is expected to keep a lid on wheat prices, as both crops compete as a key ingredient for livestock feed. “Wheat will be held to what corn does, which probably is not very positive,” Kitt said. USDA projected a season average price for wheat in 2012/13 of $5.50 to $6.70, compared to an average of $7.25 in 2011/12. The outlook is much brighter for the soybean market. USDA projected a 3.2-bil-
lion-bushel bean crop with an average yield of 43.9 bushels per acre, up 2.4 bushels from last year. Soy exports in 2012/13 were projected to total 1.505 billion bushels, up 190 million bushels from 2011/12, while ending stocks were projected to decrease by 65 million bushels to 145 million bushels. The stocks-to-use ratio for soybeans, subsequently, was projected to dip to a historically low 4.4 percent. “That’s a very, very tight projection (for soy ending stocks),” said Jack Scoville, market analyst with The Price Futures Group. “It’s signaling the soybean situation is going to be bullish as we move through summer into the harvest period. It (the soybean complex) could be the price leader to the upside.” USDA projected a season average soybean price of $12 to $14 per bushel in 2012/13 compared to an average of $12.35 last year.
A season-long weed management system important BY JEFF BUNTING
What a difference a year makes! With nearly 90 percent of the corn planted in Illinois, saying spring is off to a fast start is an understatement. As we look at the next few months, it will be important to identify some potential road blocks. Just over six months ago, prognosticators were predicting 92 million acres of corn. Many today think planted corn acres will be closer to 96 million. If this happens, it’s a significant increase in corn acres and the largest number planted Jeff Bunting since 1937. It’s an exciting time as we continue to enjoy favorable commodity prices. Yet, the increase in corn acres, coupled with early planting, will pose significant challenges in developing a season-long weed management system. What has the increase in corn acres done to herbicide supply? According to the National Agriculture Statistics Service, atrazine is still the No. 1 corn herbicide used, with 66 percent of corn acres receiving an application. One significant change over the last 10 years has been the use of glyphosate, with more than 30 percent of corn acres treated (in case you were wondering, it’s more than 90 percent for soybeans). It will be important to visit with your local FS crop specialist to make sure your corn post herbicide is available or recommend a replacement option for the 2012 growing season. With glyphosate (Roundup, Touchdown, and many generics) being the No. 1 product used in soybeans and No. 2 offering in corn, it’s important to understand the global
impact of this chemistry. Since the adoption of glyphosate-resistant soybeans, the price of glyphosate has changed significantly over the last 15 years. We have increased the rate applied per acre to increase weed control and again have used a number of products during the same time period. The glyphosate market is global and in the next couple of years many of the major manufacturers will be launching new technologies that use glyphosate as the standard while introducing new chemistries either as a premix to glyphosate or a stand-alone product. Even though the cost per acre of glyphosate is the lowest it has been in the last 15 years, your local FS crop specialist continues to recommend the use of soil applied herbicides to manage and mitigate weed resistance. It will be important to continue to implement your current weed management strategies when these new technologies become available. Jeff Bunting is GROWMARK’s crop protection marketing manager. He e-mail address is jbunting@growmark.com.
Page 15 Monday, May 14, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
World feed demand a bright spot Amid the gloom of this week’s USDA reports and the subsequent market action, there is a bright spot in the new grain data. Feed demand outside of the U.S. continues to grow at an unusually strong pace. In last Thursday’s supply/demand revisions, USDA raised its foreign wheat feeding forecast for the marketing year being completed by 10 million metric tons (mmt) to 142.75 mmt. Of the increase, 2.5 mmt was in China, with the remainder scattered among a number of other countries. The coarse grain feeding number did not change materially. But that represents the past, and markets are always looking to the future. The change in wheat feeding sliced 8 mmt off wheat ending stocks outside of the U.S. and nearly 11 mmt off total world wheat stocks. That’s grain the market doesn’t have to carry forward. More importantly, the first forecast for the 2012/13 marketing year indicated feed con-
sumption would grow more. Even though coarse grains should be more competitively priced in the year ahead, wheat feed demand is expected to continue to be relatively large by historical standards. Last year’s 142.7 mmt wheat feeding was a 27 percent jump from the prior year’s level, and 40 percent larger than it was in 2000. For the coming year, USDA projected 127.4 mmt of wheat feeding, less than the year ending, but still significantly larger than any prior year. And USDA already is forecasting a record large foreign coarse grain feeding of 562.1 mmt for the coming year. That’s 30 percent larger than it was in 2000. One concern we have with the situation is that feed demand growth in recent years has been stronger in China than elsewhere. The Chinese feed demand for wheat and coarse grains increased 50 percent since 2000, double the 25 percent for all countries outside the U.S. With the persistent slowing of the Chinese economy and deteriorating profitability in its pork sector, there’s a need to keep a finger on the pulse of that situation as time marches on.
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ü2011 crop: The latest USDA report took upside momentum out of old-crop prices. Given the short-term depth of the break, we’d put off making any catch-up sales until July futures rebound at least to $6. ü2012 crop: December should rebound to $5.20$5.25 once this break comes to an end. Sales stand at 40 percent. We’d put off making catch-up sales until prices rebound from this week’s break. We prefer hedge-toarrive contracts for making sales, but plan to tie up the basis by mid-summer. vFundamentals: The recent USDA report dominated the trade’s attention with the surprising 50-millionbushel increase in old-crop ending stocks, instead of the expected decline. The increase in the estimate was tied to an expected decline in feed usage, tied to cheaper wheat and expected early newcrop corn harvest. The initial projection for a 1.88-billionbushel new-crop ending stocks further undermined any hopes that prices might realize a return to the recent highs anytime soon.
Soybean Strategy
ü2011 crop: Even though soybean prices rallied off the new USDA numbers, the lack of upside follow-through continues to suggest the bull market is tired. We continue to urge you to sell remaining oldcrop soybeans other than any “gambling stocks” you want to hold into summer. ü2012 crop: Use rallies above $13.50 to get sales up to our recommendation. vFundamentals: The USDA reduction in old- and new-crop ending stocks may have been a little more than the trade expected to see, but wasn’t a huge shock. At the same time, the forex/financial market influences and persistent signs of a slowing Chinese economy added to the generally weak undertone, along with the continued movement of money out of risky assets. New-crop planting is expected to continue going well, and expecta-
tions of larger plantings than last year continue to gain some traction. ûFail-safe: Make sure sales are at recommended levels if July futures fall below $14.
Wheat Strategy
ü2012 crop: Wheat is still attempting to establish a seasonal low. Hold off on making catch-up sales until a bottom is confirmed, as better pricing opportunities should present themselves down the road. Producers selling 100 percent off the combine need to be aggressive in making sales on rallies. vFundamentals: The latest USDA supply and demand report took on a slightly
friendly tone toward wheat, as both old- and new-crop supplies came in below trade expectations. In addition, USDA cut its old-crop world ending stocks forecast by 4.5 percent to 197.03 million metric tons, mostly due to the increase in wheat feeding to livestock. Still, near-term upside momentum likely will be muted with winter wheat harvest accelerating and bringing fresh supplies into the pipeline. The initial USDA estimate for the Kansas crop confirmed the findings of the recent Kansas wheat tour. This is a good hard red winter crop. And the soft red crop will be big again.
FarmWeek Page 16 Monday, May 14, 2012
perspectives
Cooperatives: The ‘Supermen’ of the world Look around the globe! It’s an association; it’s a benefit; it’s ... a cooperative? Yes, faster to help the community, more powerful than single entrepreneurship businesses, and able to leap tall economic impediments in a single bound, cooperatives are the “Supermen” of the 21st century. Webster Merriam Dictionary defines the word “cooperative” as an association of perEMILY BLOEMER sons for a common benefit. In this way, cooperatives are unique in ownership. The people who own the business also are the customers, which ensures stability and instills trust. Moreover, the amount of money and resources for a single person to start a business is astronomical. Multiple people pooling their knowledge, contacts, resources, and
GROWMARK names FFA essay winners Emily Bloemer, rural Bloomington, was named winner of the 2012 GROWMARK essay contest for Illinois FFA members. This year’s contest theme was “Cooperatives in a Global Environment.” Four runners-up also were named. They and their FFA chapters are: Leah Carter, Fairfield FFA, Fairfield; Andy Dole, Mattoon FFA, Mattoon; Kaitlin Magsamen, Monticello FFA, Monticello; and Blake Uchitjil, Odin FFA, Odin. Each runner-up will receive a $125 scholarship. This is the 19th year for the contest, sponsored by the GROWMARK System and FS member cooperatives, in conjunction with the state FFA.
money is a better alternative, as it is more affordable and beneficial in the long run. Not only that, but an article entitled “Cooperative Fundamentals” from the University of Illinois webpage explains that member-owners benefit through profits. Agriculturebased co-ops use patronage payment, which includes both stock and cash amounts. Because the customers also are the employees, the member-owners can be guaranteed that the product or service they use and generate is of the upmost quality. Just like America built its industrial base in the early 20th century through rural electric, farming, and dairy cooperatives, countries around the world are improving their economies and daily lives through membership-owned businesses. Because of this, developing nations are starting to follow a similar approach to build their infrastructures and economies. Cooperatives also affect the global economy through employment. The International Co-operative Alliance decrees that, globally, 800 million people are members of coops, and are the breadwinners of their families because of it. Two hundred million people are employed in American membershipowned businesses alone, according to the University of Wisconsin Center of Cooperatives website. On average, $75 billion are paid to
these employees yearly. This stimulates the economy, as people buy food, clothing, and other necessities from industries. Cooperatives also are improving and affecting our daily lives. From electricity to water to the base foundations of the food pyramid, these types of businesses have kept communities around the globe running smoothly and efficiently over the past 100 years. Co-ops also improve communities because, simply put, they are the community. A speaker at the McLean County Farm Bureau Youth Conference, FFA State Vice President Jim Tobin, talked about Chinese cooperatives and how they help communities. An average villager has one or two cattle tied to the back or his or her house. When put into a cooperative with the other villagers’ cattle, however, the villager’s cattle reaps the village remuneration.
What one family can’t achieve alone is what cooperatives successfully pull off. Parallel to this in America is the national soybean checkoff. Although cooperatives may not hail from the planet Krypton, they still possess superhero qualities, such as improving the community, benefiting member-owners, and rising up against economic quandaries. After all, Jor-El, Superman’s biological father, described cooperatives perfectly when he once said to Superman, “You have great powers, only some of which you have as yet discovered.” Emily Bloemer, a Heyworth High School student, is a member of the Heyworth FFA chapter. Her FFA adviser is Jestun Nutter. She will receive a $500 scholarship from GROWMARK at the Illinois State FFA Convention in June. The Heyworth FFA chapter will also received $300 award.
NAFTA succeeds beyond expectations, spurs economies Let me review with you a success story that has been a major plus for the U.S. and especially for our ag industry. I’m talking about the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico. This all began in 1989 with the signing of the Canada-U.S. JOHN Free Trade BLOCK Agreement. Then, in 1993 (almost 20 years ago), Mexico was brought into the fold with Canada and the U.S. to create NAFTA. NAFTA has succeeded beyond imagination. Over that time, total U.S.
and Mexican trade has exploded by more than five times to $460 billion in 2011. Ag exports to Canada have tripled, and our ag exports to Mexico are up four times. This year, our ag exports to Canada will reach $20 billion and to Mexico, $17 billion. Mexico is our second largest export market. Mexico buys more U.S. goods than all the rest of Latin America combined. NAFTA’s success has been contagious. Countries all over the world are cutting tariffs and writing trade agreements. Fortunately, at long last, we completed trade agreements with Colombia, Panama, and South Korea. There is no question but countries that
have serious trade relations are less likely to start a war. But back to NAFTA. One of the more important side effects of NAFTA is beginning to bear fruit. In 1993, President Bill Clinton, in support of bringing Mexico into NAFTA, said: “Slashing tariffs will create jobs and increase incomes in Mexico, resulting in much less pressure on them to come to the U.S. in the form of illegal immigration.” That didn’t happen right away. In fact, at first, illegal immigration increased, but not today. The number of illegals in the U.S. has stabilized, and as many are leaving as coming in. Mexico has a dynamic job-
creating economy with a growth rate of more than 5 percent. We know that NAFTA is not the only reason Mexico is moving up the ladder to become a middle class democracy, but trade is a big help. Our ag industry exports nearly 30 percent of what we produce.
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It’s obvious how important trade is to the American farmer, but don’t forget all the other side benefits. John Block, former U.S. agriculture secretary, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His e-mail address is jblock@ofwlaw.com. complete address 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