FarmWeek May 21 2012

Page 1

ILLINOIS FARM BUREAU opposes legislation in the Illinois Senate that would require farmers to pay all employees overtime during busy seasons. ...........................3

CUBA IS SEEN as a natural market for U.S. dairy products once trade restrictions are lifted. An Illinois Farm Bureau market study trip is going there in June. .............4

A SOUTHERN ILLINOIS wheat tour found yields that were less than many farmers expected. Disease, frost and hail are the culprits. .....................................................8

Monday, May 21, 2012

Two sections Volume 40, No. 21

Day of reckoning ahead for pension, Medicaid reforms BY KAY SHIPMAN FarmWeek

Periodicals: Time Valued

The General Assembly faces difficult choices in reforming the state’s pension and Medicaid systems — and balancing the budget. Sen. John Sullivan (DRushville) and Rep. David Harris (R-Arlington Heights) talked with FarmWeek about the work legislators hope to accomplish before the scheduled May 31 adjournment. In Sullivan’s view, the state’s fiscal situation is so serious “it’s not a question of if, it’s when. Not doing anything is not an option. “I hope all the stakeholders and the public understand that,” said Sullivan, an assistant majority leader for the Senate Democrats. “My sense is we will get it done. There is a lot of hard work in front of us,” said Harris. The pension system’s problems were years in the making “and there is plenty of blame to go around,” Sullivan said. “I hope we set that (blame) aside. There are going to be tough decisions, and nobody will like them.”

“Pension reform is needed to keep the system stabilized so individuals can rely on it,” Harris said, adding he believes reforms will be passed this spring. All four caucuses, the governor, and stakeholders have been meeting regularly to develop a pension reform plan. Sullivan said no group’s pension, including that of legislators, judges, teachers, and state employees, will be spared. Gov. Pat Quinn has targeted the state’s Medicaid system for $2.7 billion in cuts. Harris noted the House passed a resolution to hold Medicaid spending constant at last year’s levels, which would be matched with federal funding. Sullivan listed three steps needed to reduce Medicaid spending: • Cut waste and fraud in the system, estimated to range between $100 million and $300 million. He recommended fraud would be reduced through verification of eligibil-

ity, incomes, and residency; • Lower the income level for eligibility; and • Reduce the rates paid to health care providers. However, providers already say the current rates are below their cost and Illinois’ rates are lower than other states. There are concerns that some providers will stop accepting Medicaid patients who then will turn to emergency rooms for treatment, which are even more costly, Sullivan noted. “We have to be very careful that we don’t shift the cost from one area to another at a higher cost,” Sullivan warned. “What we do (with Medicaid reform) is the linchpin for the rest of the budget,” Harris said. A balanced budget hinges on the $2.7 billion in cuts from Medicaid and state pension reforms, which would provide future savings but not immediate ones. Even with $2.7 billion in

Medicaid cuts, legislators are looking at cuts of 3 percent to 8 percent from every state agency. Many difficult decisions

remain in the next two weeks. “Can we do it all by May 31? That’s a big if,” Sullivan said. “There’s a good chance we could go into overtime.”

MATURE BY THE FOURTH OF JULY?

The old adage knee-high by the 4th of July has long since become passé, but corn more than 5 feet tall by May 16 (when this picture was taken) really indicates just how obsolete the phrase is. Dwight Snyder stands beside the field of corn he planted March 12 on a farm about 3.5 miles north of Sandoval. With such early planting and good growing conditions this year, it makes one wonder when harvest may take place. Pictured in background is a house being built by Eric and Aimee Keller, Snyder’s son-in-law and daughter. (Photo by Aimee Keller)

Margin protection cream of farm bill plan? BY MARTIN ROSS FarmWeek

Volatility is a given in the dairy sector. But a Senate-proposed “margin protection” program would help ease producer jolts in a rollercoaster market, according to University of Illinois Extension dairy specialist Michael Hutjens. Senate Ag Committee farm bill proposals would replace current dairy price supports and the Milk Income Loss Contract (MILC) program with an industry-supported plan that would help protect dairy producers against low or deficit margins caused by low milk and/or high feed prices. Farms would receive payments when actual production margins fall below specific thresholds. Further, producers could purchase annual “supplemental production margin

protection” over and above their basic program protection. Hutjens acknowledged parts of the Senate plan — such as voluntary supply management proposals — likely will spark debate. But he sees margin

FarmWeek on the web: FarmWeekNow.com

protection as “a keeper.” Hutjens expects breakeven revenues for many Midwest dairymen over the first quarter of 2012, but echoes industry fears that Corn Belt producers “are probably $1-per-hundred-

weight short” heading into summer. Last year, feed prices posed a major challenge for Midwest dairymen, even with strong November-January milk prices, he said. “Now, we have pretty modestly low milk prices with high feed prices, which really squeezes the margin,” he told FarmWeek. “Right now, the average Illinois dairy farmer is losing money every day on the milk he’s producing. “The MILC program looks at a milk price in Boston and works from there. One could argue whether that benchmark can work in Illinois or California. (With the Senate plan,) we’re going to be able to quote local milk and feed prices, and you can buy various levels of ‘insurance’ and protection.” See Margin, page 3

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


FarmWeek Page 2 Monday, May 21, 2012

Quick Takes FARM LABOR REPORT — The National Agricultural Statistics Service (NASS) published its biannual farm labor report last week. NASS interviewed nearly 12,000 farmers and ranchers across the U.S. to obtain information on the number of agricultural workers, hours worked, and wage rates paid at the national and regional levels. According to the report, the number of hired workers decreased nearly 5 percent, while wage rates increased almost 2 percent from last year. In the report’s reference period — the week of Jan. 8-14, 2012 — there were 575,000 workers hired directly by farm operators. In that same time frame, hired workers were paid an average wage of $11.52 per hour. The biggest increases came in the Corn Belt, which had the highest percentage of farm labor hires. According to the report, this was primarily driven by the need for livestock workers because of increased inventories. STUMPING FOR THE STOOL — During a Capitol Hill hearing last week, American Farm Bureau Federation (AFBF) President Bob Stallman reiterated support for a “single” commodity program and a strong crop insurance program in the 2012 farm bill. Speaking before the House Ag Subcommittee on General Farm Commodities and Risk Management, Stallman said he was confident AFBF’s approach could easily provide a safety net that meets regional and commodity differences, while also keeping within budget parameters. “Continuation of a multi-legged stool remains the best approach for providing a fair and effective safety net,” said Stallman, advocating a strong insurance program and continuation of current marketing loan provisions as well as a farm revenue loss program. Senate Ag Committee proposals include a new revenue protection program plus an alternative income protection program for upland cotton producers. Stallman’s testimony was based on the premise that the House Ag Committee, like it’s Senate counterpart, will draft measures to reduces ag spending by $23 billion over 10 years. FTA TAKES EFFECT — The U.S.-Colombia free trade agreement went into effect last week, heralding a new era for U.S. farmers in the South American market. “U.S. agricultural exporters (now) receive duty-free access on more than half of the products we currently export to Colombia, and virtually all remaining tariffs will be eliminated within 15 years,” Ag Secretary Tom Vilsack stated. Estimates show import tariff reductions under the accord will expand total U.S. exports by more than $1.1 billion, reportedly supporting thousands of added American jobs while increasing U.S. global domestic product by $2.5 billion. For U.S. agriculture, the agreement with South America’s third-largest economy levels the playing field with respect to third-country competitors, said AFBF.

(ISSN0197-6680) Vol. 40 No. 21

May 21, 2012

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emergiNg issues

List raises renewed concerns about EPA’s regulatory reach Farm Bureau seeks to intervene in a federal lawsuit aimed at forcing EPA to override state Illinois farmers hope an expanded federal list water quality standards with federal nutrient of “wetlands” plants will not help the U.S. limits. Environmental Protection Agency (EPA) sow Expanding potential wetlands criteria could new seeds of ag regulation. set the stage for heightened EPA control in key The U.S. Army Corps of Engineers has production regions, Roderick warned. added 1,472 plant species to its existing data“If they get control of the water, they get base of plants used by the Corps, EPA, and control of the land,” he told FarmWeek. “If other agencies to identify wetthey change the soils criteria and lands areas. Additions to the FarmWeekNow.com the plant criteria, all of a sudden Vi e w t h e e n t i r e l i s t o f n e w they’ve greatly expanded the National Wetland Plant List are wetland plants for Illinois at amount of wetlands they can regeffective June 1. FarmWeekNow.com. According to the Corps, ulate.” added species boost the list by The additions include several 22 percent. It is designed primamaple as well as pecan and hickorily to guide federal and state agencies, scien- ry trees; velvetleaf; brome grasses and fescues tific and academic groups, and the private found in pasture areas; and common pawpaw sector in planning and monitoring of wetfound in timber areas. land mitigation/restoration efforts, the While Congress has intervened in EPA Corps said. efforts to expand Clean Water Act regulations At the same time, the environmental beyond major “navigable” waters, Roderick notnewsletter Inside EPA suggests the number of ed a continued push by environmental groups marginal wetlands that may require EPA Clean and fears that EPA ultimately could “roll over” Water Act permits for drainage or other activiand issue a regulatory decree armed with ties could be on the rise. expanded wetlands criteria. Pike-Scott Farm Bureau manager Blake RodIn a letter applauding IFB efforts, respective erick amplified concerns that the expanded list Pike and Scott County Farm Bureau Presidents could provide EPA another way to expand its David Gay and Jeff Schone argued “It is now regulatory reach. our turn to directly square off with the environAg groups have focused attention on EPA mental community and their efforts to mandate “guidance” that proposes expanding the scope nutrient load limits in the Mississippi River of “U.S. waters” under its jurisdiction. Illinois Watershed.” BY MARTIN ROSS FarmWeek

Farmers reward Domino’s for ‘common sense’ policy BY DANIEL GRANT FarmWeek

Ag leaders and bloggers in recent weeks initiated a social network campaign to support Domino’s Pizza for its “common sense” approach to animal welfare. Domino’s shareholders earlier this month rejected — by a majority vote of 80 percent — a resolution from the Humane Society of the United States (HSUS) that proposed Domino’s require its pork suppliers to end the use of gestation stalls. “The vote to reject the HSUS resolution was a vote for common sense,” said R.C. Hunt, president of the National Pork Producers Council. Domino’s supports the position of the American Veterinary Medical Association and the American Association of Swine Veterinarians that notes gestation stalls are as appropriate as group housing systems for providing the wellbeing of sows during pregnancy. Ag leaders last week organized an “Ag Pizza Party” on Facebook to support Domino’s for its decision. Social network participants also encour-

aged farmers and others to continue to support Domino’s long-term for its decision. “We want to reward (Domino’s) for doing the research and trusting the same experts we trust,” Chris Chinn, a fifth generation pork producer from

Animal husbandry practices, not housing systems, are the key to determining animal welfare, according to Dereke Dunkirk, president of the Illinois Pork Producers Association. “We work closely with vet-

‘The vote to reject the HSUS resolution was a vote for common sense.’ — R.C. Hunt National Pork Producers Council

Missouri, told the RFD Radio Network. “We want to support Domino’s a lot more, even if it means driving 45 minutes to pick up a pizza.” Chinn encouraged farmers and other pizza buyers who support Domino’s decision to write thank you notes that explain why they buy their pizzas there. “We need to let them know why we’re making the effort to buy their pizzas,” said Chinn, who helped spearhead the campaign to support Domino’s on Facebook.

erinarians and our nutritionist to make sure we’ve giving the best care possible to our animals,” Chinn added. Other restaurant chains, including McDonald’s, Wendy’s, Burger King, and Denny’s, in recent months unveiled HSUS-supported plans to start phasing gestation stalls out of pork production.


Page 3 Monday, May 21, 2012 FarmWeek

government

IFB urges senators to oppose mandatory ag overtime BY KAY SHIPMAN FarmWeek

Farmers would have to pay all employees overtime during busy seasons under legislation before the Illinois Senate. Illinois Farm Bureau is asking members to contact their senators and request they oppose SB 1565. On a 9-5 vote, the Senate Executive Committee last week voted to send the legislation, sponsored by Sen. Kimberly Lightford (D-Maywood), to the Senate floor. It would eliminate the overtime

exemption for agricultural labor and would raise the state’s minimum wage, through a series of annual increases, to approximately $10.58 per hour — the highest in the nation. Once the minimum wage reaches that level, the legislation

allows for annual automatic increases tied to inflation. “Basically this means a grain farmer, working 70- to 80-hour weeks during harvest, would have to pay time-and-ahalf to all employees working more than 40 hours — even though farmers can’t control the weather and need to get work done during the windows of opportunity,” said Kevin Semlow, IFB director of state legislation. The legislation also would eliminate: • A training wage that allows employers to pay new employees 50 cents less per hour than the minimum wage during their first 90 days of employment; • A teen wage that allows workers younger than 18 to receive 50 cents less per

hour than the minimum wage; and • An exemption from paying minimum wage to immediate family members. Semlow pointed out Illinois’ current minimum wage rate of $8.25 is tied for the fourth highest in the nation. The highest hourly rate is Washington’s $9. Neighboring Midwestern states currently pay the minimum federal rate of $7.25 per hour. Farm Bureau members are encouraged to call a toll-free number for the state operator at 877-4228424 and ask to be transferred to their state senator. If the senator is unavailable to speak, callers should leave a message with their name, address, and a phone number, Semlow said.

Lawmakers urge repeal of mandate to aid Illinois BY MARTIN ROSS FarmWeek

U.S. Rep. Aaron Schock, a Peoria Republican, urged U.S. Senate action to help Illinois address “mounting budget pressures” related to Medicaid costs and implementation of federal health care law. Schock and Illinois House

Republican Leader Tom Cross, an Oswego Republican, spearheaded a letter Thursday to U.S. Senate Majority Leader Harry Reid (D-Nevada) and Senate Minority Leader Mitch McConnell (R-Ky.) urging the Senate follow actions taken in the House in repealing the Medicaid Maintenance of Effort

(MOE) mandate in new health care law. The letter was signed by 10 Illinois congressional Republicans and all 54 Illinois Republican state representatives. The group argued House Resolution 5652 would enable Illinois to move forward with implementation of income verifica-

NCGA chief questions oil, auto industries’ attack on E15 E15 is “still in the game” despite the newest offensive by major oil and some automotive interests, according to Garry Niemeyer, president of the National Corn Growers Association’s (NCGA) Corn Board. Niemeyer hailed his group’s approval of a “15-by-15-by-15” vision, which sets a goal of 15 billion bushels of U.S. corn production annually and 15 billion gallons of ethanol production by 2015. The industry appears “pretty much online and on target” toward that goal, Niemeyer said. NCGA also plans to develop a five-year blueprint for ethanol development. The potential hang-up lies in policy gridlock and continued resistance from other sectors, the Auburn grower warned in an RFD Radio/FarmWeek interview. Beyond congressional attacks on ethanol mandates under the federal Renewable Fuels Standard, the American Petroleum Institute (API) and a pair of automotive trade groups last week deemed U.S. Environmental Protection Agency (EPA) approval for E15 (15 percent ethanol blends) “premature.” That’s as individual states consider E15 “acceptance” measures crucial to nationwide adoption, and U.S. Rep. Jim Sensenbrenner (RWis.) continues his push to halt E15 introduction pending further vehicle testing. At the same time, lawmakers including Collinsville Republican Rep. John Shimkus are backing measures to expand U.S. biofuels use. “Passing things through Congress when the majority of the two parties don’t even want to talk with each other makes it very difficult for us to accomplish anything,” Niemeyer said. “How-

ever, we’re still in the game.” The groups Auto Alliance and Global Automakers joined API and small-engine manufacturers in attempting to discredit E15, suggesting use might damage valves and valve seats in some early 21st century models. Patrick Davis, manager of the U.S. Department of Energy’s (DOE) vehicle technologies program, called the groups’ contentions “significantly flawed.” He challenged their “choice of test engines, test cycle, limited fuel selection, and failure criteria,” arguing they resulted in “unreliable and incomplete data.” Beyond extensive DOE vehicle testing, the NASCAR racing circuit has provided further validation of mid-level blends, running close to two million miles on E15 “in some of the toughest engine conditions imaginable,” the biofuels group Growth Energy maintained. “There hasn’t been one ounce of problems associated with any of that at all, anywhere, any place, on any track, at any time,” Niemeyer insisted. “(E15) tests have been approved by EPA — that’s the reason we have these agencies. The Sensenbrenner bill would continue these studies. Meanwhile, an Iowa State University’s Center for Agricultural and Rural Development report released last week indicates that ethanol reduced wholesale gasoline prices by an average $1.09 per gallon in 2011. That’s up from 89 cents per gallon in wholesale savings in 2010. Niemeyer charged API and member oil companies attempting to block E15 use “are balking at losing in the (fuel) competition war.” — Martin Ross

tion requirements that now are allowed under state law but are impossible under federal law. The General Assembly adopted requirements on a bipartisan basis to reduce fraud in the system. Repealing the MOE requirement allows the state to proceed with “this important program integrity measure,” the lawmakers told Reid and McConnell. “The hardworking taxpayers of Illinois cannot wait for the notoriously idle Senate to delay action,” Schock said in a joint statement. “We urge Senate leadership to bring this to a vote without delay.”

Quinn seeking business support for fiscal reforms Illinois no longer can afford its current Medicaid and underfunded state employee pension systems, Gov. Pat Quinn warned business leaders at the City Club of Chicago last week. Nearly 40 percent of the state budget will be spent on the pension and Medicaid systems, Quinn pointed out. “As a result, there is a very serious squeeze on education, on public safety, on human services, and all other things we want our government to do,” the governor said. Pension costs have increased from $1.7 billion in fiscal year 2008 to $5.2 billion in fiscal year 2013. The state had to increase contributions to make up for years of underfunding. Two bipartisan groups of lawmakers are working on proposals to reform Medicaid and the state employee pension, Quinn said, but he did not give any details. “These are difficult decisions,” he added. Quinn encouraged business leaders and others to lobby their legislators to support the reforms. “They need people back home telling them, ‘This is important,’” he said. — Kay Shipman

Margin Continued from page 1 Hutjens noted sharp volatility in margins over the past four years, from highs exceeding $3 per hundredweight of production in January 2008 to a $4-plus drop into the red over the first half of 2009. He dubbed 2011 “an excellent year,” with California’s dairy sector rallying from a “devastating” 2009-2010 period. Producers remained on solid footing in January, but dairy futures were beginning to “look scary,” he related. Hutjens argued U.S. farmers tend to boost milk production when prices are high or particularly low, and “when margins are good, guys jump in,” affecting price and the market. Global influences, as well, contribute to volatility. Abundant rainfall in New Zealand fueled pasture health, boosting the key exporter’s production by 8-9 percent and depressing the world milk market price. While the U.S. “rode” a strong market last year, exporting 13 percent of its milk solids, Hutjens expects U.S. producers to “ride ’er down” in 2012. “That volatility’s always going to be there,” he maintained. “Who knows when it’s going to rain? Who knows what these guys in California are going to do? Who knows about the European Union? “That affects the stock market; it affects (economic) confidence. When people eat out more, that usually drives up some uses of cheeses and dairy products. “Here I am, a dairy farmer in Central Illinois, saying, ‘How can I ride this out? I can’t control any of those things. But here is a program (margin protection) that may give me some insurance.’”


FarmWeek Page 4 Monday, May 21, 2012

mARkETS

Producer seeks to explore Cuba’s untapped potential BY MARTIN ROSS FarmWeek

Before the Castro regime took control of Cuba in 1959, only 11 percent of rural Cuban families were regularly drinking milk, and the island was importing nearly 70 percent of its food, including dairy products, from the U.S. Nearly a Doug Scheider half-century later, dairy had become Cuba’s fastest-growing import sector, with demand rising 11 percent annually from 2000 through 2006 alone. Reconstituted milk powder had become an important part of government-distributed child rations, while a major revival in Cuban tourism had spurred diversified, higher-end product demand. Illinois Milk Producers Association President Doug Scheider, a participant in an Illinois Farm Bureau Cuba

market study tour beginning June 28, suggests research into the Cuba market and re-examination of U.S. Cuban

just not aware of ?” the Stephenson County dairyman posed. “Is there a market for spe-

trade/travel policies could help factor Midwest producers back in. He hopes next month not only to gauge key challenges in expanding the island’s dairy diet but also to root out hidden or unexplored opportunities for Illinois sales. “Under the current environment, are there Illinois dairy products we could be exporting to Cuba that maybe we’re

cialty cheeses? There are some smaller cheese plants in the northern part of the state which do some specialty cheeses. “Are there products we could be sending there that we aren’t just because people may think it’s not a possibility?” Scheider sees the possibility of expanding fluid milk as well as powder exports to Cuba, “if the market was truly open.”

Conservation program workshops set for women, minority landowners Women and minority landowners who aren’t familiar with the Natural Resources Conservation Service (NRCS) may learn about USDA programs June 26 in Princeton and June 28 in Springfield. Each workshop will start at 8:45 a.m. and end at 3:30 p.m. The workshops will cover information about the Conservation Stewardship Program, the Environmental Quality Incentives Program, and other available easement programs and services. Participants will hear from a panel of landowners and have an opportunity to sign up for assistance.

The Princeton workshop will be in the Bureau County Metro Center, while the Springfield workshop will be in the Northfield Inn Suites & Conference Center. Lunch and an opportunity to apply for a travel stipend are available to those women and minority landowners who pre-register by June 15. For more information or to register, contact the Prairie Hills Resource, Conservation, and Development Inc., one of the workshop sponsors, at 309-833-4747 or e-mail prairie@frontier.com.

TEACHING YOUNGSTERS

Troy and Kimberlee Mairs of Ashton, Lee County 4-H members, played a trivia game about pigs with some of the 220 fifth grade students who attended the recent sixth annual Ag Expo at the Lee County 4H center and Fairgrounds. Questions ranged from “Do pigs like music?” to “How much money did one pig sell for?” Students were from Ashton Franklin Center, Paw Paw, St. Mary’s, St. Anne’s, Steward, and Jefferson (Dixon) schools. The event was sponsored by the University of Illinois Carroll-Lee-Whiteside Extension, Lee County Soil and Water Conservation District, Lee County Ag in the Classroom, and Lee County Farm Bureau. (Photo courtesy Lee County Farm Bureau)

Although milk’s water content increases transportation costs, U.S. proximity to Cuba offers a relative freight advantage, and ultra-high temperature processing technology has helped extend the storage/shipping life of fluid product. Fluid milk most likely would move to Cuba out of the Southeast, but even that would open domestic market share for Midwest producers, Scheider said. He notes the Midwest traditionally has shipped milk to the Southeast during the hot, humid summer months, when southern production wanes. Scheider sees value in reevaluating U.S. policies toward Cuba — especially restrictions that effectively require Cuba to pay cash for U.S. goods. In 2011, Cuba bought 27.6 million bushels of corn and 110,000 tons of distiller’s dried grains from the U.S., but the U.S. Grains Council reports

Cuba is buying more corn from South America because of requirements that U.S. purchases must be made in cash. Opening travel to Cuba likely would boost Cuban hotel/restaurant demand for U.S. product, Scheider added. The Illinois dairyman nonetheless recognizes continued debate over U.S. relations with Cuba, particularly among conflicting Cuban-American interests in Florida. Scheider cited market gains the U.S. has enjoyed since expanding relations with Communist China, whose rising middle class has fueled a “dramatic” rise in dairy imports. Chinese imports jumped 25 percent in March, with whey product purchases up 45 percent, amid continued fallout from the Chinese dairy sector’s melamine contamination scandal and a government focus on improved dairy nutrition.

Cuba small but ‘natural’ dairy market’? Cuba seems “a natural market” for U.S. dairy producers, according to Peter Vitaliano, National Milk Producers Federation vice president for market research. In 2010, the Caribbean overall imported some 33,000 metric tons of U.S. cheese — roughly a tenth the volume shipped into East Asia or the Soviet Union. But beyond Puerto Rico, the region boasts little domestic milk production, and imports account for the greatest share of dairy consumption. Cuba’s cheese imports have been growing slightly, Vitaliano reported. It purchased 3,000 tons in 2010. “It’s not an insignificant importer,” Vitaliano told FarmWeek. “Neither Cuba nor the Caribbean is a huge dairy importer, but my guess is that because of the (U.S.’) cash-only requirements, there’s probably some potential that’s not reflected in current trade numbers. “The Caribbean is close by, and we only compete a little bit with Europe and New Zealand in that market. It’s a natural market for us.” Cubans reportedly paid nearly 20 percent more for food last year as economic reforms, reduced imports, and stagnating farm production touched off price inflation. President Raúl Castro has deemed ag reform and increased food production a top priority, but domestic output increased only 2 percent last year after falling 2.5 percent in 2010. Vitaliano noted ultra-high temperature-treated fluid milk trades in parts of the Caribbean with deficit dairy production and is used to replenish island-hopping cruise ships. While Caribbean producers may produce some “fresh” cheeses and fermented products such as yogurt, Vitaliano said Caribbean economies largely cannot support dairy manufacturing, opening a door for value-added imports. While Europe generally has fed cheese demand among higher-income Caribbean consumers and tourists, Vitaliano argues U.S. “artisan” cheeses are starting to compete with European product. However, he believes organization of regional cheese makers and perceptions of product quality and prestige will guide U.S. cheese export prospects. “When you get up into those types of cheeses, price doesn’t necessarily move them,” Vitaliano stressed. — Martin Ross


Page 5 Monday, May 21, 2012 FarmWeek

research

New U of I center seeks solutions for erosion problems BY KAY SHIPMAN FarmWeek

Sedimentation, one of the state’s top water quality problems, is the focus of a new field research center at the University of Illinois. Last week, water sprinklers simulated the erosive effects of a gentle shower on a three-to-one slope of bare soil and on a strip protected by a fibrous erosion-control blanket. As Illinois Department of Transportation (IDOT) employees watched, clear water gathered at the base of the slope with the blanket, while water cut rills into the bare soil. The U of I’s Department of Agricultural and Biological Engineer conducts training, research, and product testing at the Erosion Control Research and Training Center, located on the U of I’s research farm south of the Urbana campus. The cen-

ter, which just marked its first year, is a partnership between the university and IDOT. “Construction site erosion is very high,� said Prasanta Kalita, a U of I agricultural engineer. Attention to water quality is imperative given the federal Clean Water Act requirements, added Craig Mitckes, co-chairman of IDOT’s stormwater conservation for roadside maintenance. “This (training) is going to be required for our (IDOT) people,� Mitckes said. Training also will be required for contractors and engineers who design or work as consultants on IDOT projects, he added. Mitckes estimated 1,000 to 5,000 people will attend training sessions at the erosion-control center. The training includes proper installation of different erosion-control structures and practices and their

Carlos Bulnes, right, University of Illinois graduate student in agricultural engineering, sets up a soil erosion demonstration at an Illinois Department of Transportation training program last week. The Department of Agricultural and Biological Engineering conducts research and offers training at a new Erosion Control Research and Training Center on the university research farms in Urbana. (Photo by Kay Shipman)

maintenance. U of I researchers also are testing different erosion-control products, especially new ones on the market, and will provide IDOT with informa-

tion about the products’ performance. Carlos Bulnes, a graduate student, is studying how different types of check dams work under different

stream-flow rates. Another graduate student, Joseph Monical, is researching the effectiveness of different types of vegetation cover on seeded slopes.

Economic development cooking in Northwest Illinois Food is at the heart of a new northwest region economic development tool geared to adding value to local farm products. The KitchenIncubator of N.W. Illinois officially opened last week in Sterling’s business incubator complex in Whiteside County. The commercial food manufacturing facility was funded by the city, the Sauk Valley Area Chamber of Commerce, the Greater Sterling Development Corp., and private donations. “We needed a spot for food-related businesses and we have a built-in market with the (year-round) farmers’ market,� Kim Janssen Ewoldsen, chamber of commerce director, told FarmWeek. Janssen Ewoldsen and Krista Morthland, economic development director, envision the facility being used by

farmers to process vegetable, fruits, or meat; non-profit groups to prepare foods for fundraising; and youth groups and classes to learn about food preparation. Kitchen incubators have been built around the country, but Janssen Ewoldsen said she believed the one in Sterling is the first of its kind in Illinois. The multi-room facility offers different kitchen and bakery equipment and is open around the clock, seven days a week. It may be rented on an hourly, weekly, monthly, or longer basis. An existing test market is available through the yearround indoor farmers’ market, Twin City Market. A commercial kitchen is part of the farmers’ market facility, but demand has outgrown the space and its lack of canning equipment, said Janssen Ewold-

sen. She envisioned farmers processing extra sweet corn, beef, or pork into value-added products to be sold at the farmers’ market. “You don’t have to be a large farm (to use the kitchen incubator). You might have a small sweet corn patch and want to

can corn salsa,� she offered. To help new food entrepreneurs, a full-time kitchen manager is familiar with health department regulations as well as the food-related requirements of the USDA and Illinois Department of Agriculture. Staff with the adjacent Small

Business Development Center are available to answer start-up business questions, Janssen Ewoldsen noted. “If you want to start a food business, this is the place to come. We believe we can be a one-stop shop,� she said. — Kay Shipman

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Ž Rob Young, right, carries appetizers from a baking area in a new KitchenIncubator of N.W. Illinois during last week’s open house. Located within Sterling’s business incubator complex, the new incubator is a regional commercial kitchen for food-related start-up businesses. The project was funded by the city, the chamber of commerce, and economic development corporation. (Photo by Kay Shipman)

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FarmWeek Page 6 Monday, May 21, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: We had a warm and dry week here in Northern Illinois, which has made for excellent progress in finishing up soybean planting, spraying herbicides, and baling hay. The cornfields look pretty good even though we only had about 0.5 of an inch of rain in the last month here at our farm. The soybeans that were planted deep enough to be in good moisture are coming up with good stands, but there are some beans lying in dry dirt. The wheat is all headed out, so we should have an early harvest, and have a chance for second crop of beans. I hope I can report on some rain next week. Pete Tekampe, Grayslake, Lake County: A great week for fieldwork in Lake County. About 90 percent of the corn is planted with hardly any up. Beans are about 20 percent planted. Winter wheat is heading out already, which is at least three weeks earlier than normal. Never have cut wheat in June. Hopefully, we got the weekend rains that were forecast. Leroy Getz, Savanna, Carroll County: No rain last week. May totals still stand at 0.85 of an inch. Rain would be welcome. Dry, hot, windy days dried the soils out but made for excellent haymaking. Soybean planting is being finished with a few fields now emerged. Spraying corn is nearly complete and some insecticides have been applied for armyworms and alfalfa weevil. Cutworms have not been a problem yet. Keep scouting those fields for problems. Growing degree units since April 1 are at 421. Ryan Frieders, Waterman, DeKalb County: We received 1 inch of rain last weekend (May 12-13). It has been warm and sunny and the plants are starting to grow. Corn stands look very uniform and have excellent color. We are getting ready to start sidedressing nitrogen and postspraying herbicides. Soybean planting is nearly complete in the area. We finished our beans on Thursday. We need some moisture to help the soybeans germinate because the topsoil is dry. Larry Hummel, Dixon, Lee County: Only the last few fields are waiting for the planter to show up here in Lee County. We have about 15 acres of corn left to plant as soon as the contractor puts the finishing touches on some waterways. It’s been a good year so far for waterway work. We have put in almost 16 acres of waterways this spring. Hopefully, we can get as good a seeding on the last few as we did the earlier ones. Insect pressure has been non-existent, and crops are off to a nice start. All we need now is a nice shower to get the last of the soybeans up. Joe Zumwalt, Warsaw, Hancock County: It was a fastpaced week in Western Illinois. A large portion of the soybeans have been planted in the area. There is a lot of replanting of corn and soybeans just to the north of here. Crops planted in the latter half of April were adversely affected by the last two weeks of rain. Sprayers have been very active spraying stray weeds. Many are taking advantage of the great weather to put up the first cutting of hay. The wheat continues to progress rapidly as well. Hopefully, I won’t jinx this, but the early corn and how the soybeans went in the ground looks very promising. Let’s continue to keep our fingers crossed for an excellent year! Ken Reinhardt, Seaton, Mercer County: Last week was a beautiful week to do about anything. Corn and bean planting are rapidly finishing up. I was in the last bean field Friday morning. Early-planted corn is looking very good. There have been some cutworms found, but I know of a couple fields that have had to be sprayed for them. Soybeans planted before the rain on April 27 have seemed to emerge with good stands. Sidedressing corn and making hay are also getting accomplished.

Ron Moore, Roseville, Warren County: We received only 0.1 of an inch of rain last week. We are starting to get dry again. Most of the soybeans will be planted in this area this week. The early-planted soybeans have emerged and look very good with no reports of any bean leaf beetle feeding. Some post-spraying of corn has started, and the corn crop looks very good at this point. Lots of hay was baled last week and the quality is excellent. Pasture conditions are good now also. Tim Green, Wyoming, Stark County: A very good week around here. We started planting beans Monday morning (May 14). Beans are going in nicely. They probably are 90-95 percent done. Corn planting has started up again. The southern part of the county had water standing and a few diseases. There has been a substantial amount of replant in a three-mile area there. We are just starting to spray corn. The first cutting of hay looks good. Wheat harvest probably is going to be two weeks early. Mark Kerber, Chatsworth, Livingston County: Dry weather gave us a chance to get the soybeans planted. The areas to the north really needed to dry out. Corn is growing rapidly and it is time to sidedress nitrogen for those who do that. Many nitrogen sidedress applicators have been purchased this year, including one we bought. Early-planted soybeans are getting attacked by bean leaf beetles. Some are spraying for this pest, as this is the worst outbreak in years. Cruiser Max seed treatment is a systemic insecticide that protects from this problem. My neighbor asked me about all the dust devils or whirlwinds this planting season. Are they turning the lid on or off for rain in the rotation. Another problem this year has been ground squirrel damage to young corn plants. Seems like more damage than ever from these rodents. Markets are rebounding from some of their losses. Ron Haase, Gilman, Iroquois County: Farmers returned to the fields last week. Rotary hoes were in the fields early in the week to help break the soil crust that formed so that troubled plants could emerge better. On Wednesday, field cultivation and planting began in fields that were dry enough. Many soybean fields also were being planted last week. We returned to planting corn on Thursday evening. Soybeans that were planted were hurt more than corn by the excessive rains. Some that were planted the same day or a day before the rain were challenged with emerging from deeper in the soil after the rain leveled off the field. Many corn fields survived all the standing water without losing plants in those areas. The most advanced corn is in the V-4 growth stage. Sidedressing of nitrogen was another activity being performed in cornfields. The local closing bids for May 17: nearby corn, $6.51; new-crop corn, $4.94; fall 2013 corn, $4.97; nearby soybeans, $14.26; new-crop soybeans, $12.73. Brian Schaumburg, Chenoa, McLean County: Above-normal temperatures have pushed GDUs to 394, 100 above normal. Corn development is at V-3 to V-5 and most soybeans are at V-E to V-1. Seeding is complete except for some late-arriving seed beans. Some bean leaf beetle feeding is evident on untreated soybeans. Crop conditions are still rated excellent. No one along the Route 24 corridor would turn down a rain event. Corn, $6.58; fall corn, $5.06; soybeans, $14.10; fall soybeans, $12.64; wheat, $6.34. Wilfred Dittmer, Quincy, Adams County: Another week in this area with no rainfall, so planting equipment ran at a fairly steady pace and a lot of soybeans were placed in the ground. Some are finished and others are just getting started. Corn looks good and is growing, and what wheat I have seen is all headed out and probably two to three weeks ahead of a normal year. Even the hay crop looks better than normal. Be careful: Even lawn mowers can be dangerous.

Steve Ayers, Champaign, Champaign County: The idyllic weather continues, but we are needing a shower. Looks like we have a chance for 0.3 to 0.5 of an inch of rain Sunday evening into Monday (today). We finished beans Tuesday evening, wrapping up a textbook planting season for both corn and soybeans. In our little corner of the world (USDA eastern crop reporting district), we are 99 percent corn planted with 94 percent emerged. Also, 46 percent soybeans planted with 19 percent emerged. Our district topsoil moisture is 12 percent short, 73 percent adequate, and 15 percent surplus. Seeing patches of purple corn that will grow out of it once we get a shower. Hope everyone had a happy Armed Forces Day last Saturday, and thank you veterans! Carrie Winkelmann, Tallula, Menard County: I hate to say this because we will probably get a monsoon, but we could really use some rain. All of the beans are in the ground and the ones that have been rained on look good, but the latest-planted aren’t really planted until it rains. The corn is growing well, but could use a rain as well. A lot of hay baling was going on last week. My father-in-law says it is the best first cutting he has ever seen. Tom Ritter, Blue Mound, Macon County: Corn planting in this area is virtually complete. Soybeans are approaching 90 percent completion, if not more. Farmers had a good week finishing up soybeans. There also has been a lot of spraying of corn and soybeans. Corn is in varying heights, but quite a bit of it over knee-high at this point. It’s not the height of the corn or how fast the beans are emerging that farmers tend to talk about, it’s mainly how dry it is. We are definitely lacking moisture and it’s time to get soybeans finished up before we lose the moisture that would allow us to even continue to plant. Overall, crop stands and plant health look great. All we’re lacking is the moisture. No tiles are running so we’ll need sporadic rains throughout the growing season. Todd Easton, Charleston, Coles County: Another dry week is putting us at or near the finish line for planting season 2012. I have spent most of it in one of my favorite places — between the rows of this very good-looking corn crop as I make the sidedress nitrogen pass for the year. Some plant tissue tests we took and the general appearance of the corn plants suggest that early spring denitrification will not be an issue for our general area this year. That is fine by me as the last couple of years have shown me more yellow corn than I ever cared to see. It is always good to see big potential this early on, but, of course, we are a long, long way from the bin. The young plants do seem to be ready for some precipitation, though, and hopefully what is in the forecast for the beginning of this week materializes into measurable rainfall. Newly planted soybean fields are in the process of emerging with very good initial stands. A modest amount of rainfall would be quite beneficial for those fields also. Doug Uphoff, Shelbyville, Shelby County: Soybean planting wrapped up and some corn was replanted last week. We replanted 25 acres on timber soils and have another 40 that we are thinking about replanting. The problem is we have 25,000 plant population but, corn in the same field is in at V-4 to 2-leaf stage. The harder the soil, the shorter the corn. It appears wheat will be ready by the second week of June at the latest. No bug issues to date. Some are sidedressing corn following corn. Herbicides are being put on corn and on pre-emerge for soybeans. Cash corn Thursday at Findlay elevator: $6.64; cash beans, $14.28; fall corn, $5.08; fall beans, $12.77. Processor prices: cash corn, $6.85; cash beans, $14.53; first half of August corn, $6.14; fall corn September, $5.13; fall beans, $12.92.


Page 7 Monday, May 21, 2012 FarmWeek

CROPWATCHERS Jimmy Ayers, New City, Sangamon County: This past week we received no rain. Quite a few of the beans got planted. Several people are cutting hay or getting ready to. Some of the corn is taking off and looking really good, but there’s still quite a bit that’s yellow. Whether that is from water or sulfur shortage, it’s hard to tell. I know we’re talking about a drought in the Midwest, and the ground is pretty dry at this time.

Dan Meinhart, Montrose, Jasper County: It was nice to get into the field after being out the first two weeks of May. A lot of field activity has been taking place: planting corn and beans, replanting corn, especially what was planted the last week of April, applying fertilizer and chemicals, and making hay. Planting is wrapping up. Wheat is turning and looking good. The weather was excellent last week. Everybody is ready for a nice rain.

David Schaal, St. Peter, Fayette County: It was a busy week around here. A weekend ago, we finished corn and went right into planting beans. Hope to finish with beans here today (Friday). The corn that was planted is emerging in five or six days. Lots of activities going on, spraying, planting, sidedressing corn, hay cutting, and baling. Wheat also is coming on at a rapid pace. There was a wheat tour during the week and the crop is not what producers thought it was going to be a little while back (see story on page 8). We’ve had a real good stretch of weather for putting crops in the ground.

Dave Hankammer, Millstadt, St. Clair County: The weather this past week was ideal for fieldwork as well as other activities. With temperatures ranging from the lows of the mid-50s to the highs of the low-80s, low humidity and no rain allowed farmers to continue to plant their crops. Farmers in the area finished planting corn and quickly switched to planting soybeans. The early-planted corn is approximately 12 inches tall and is looking good. After picking up some parts in a neighboring county to the south, my brother reported he saw soybeans already emerged and down the row. The wheat fields had very little green color remaining, indicating that wheat harvest may start as early as the end of May. Second-cutting alfalfa hay was made over the Mother’s Day weekend since the threat of rain was minimal and weather conditions were ideal. Local grain bids: corn, $6.53; soybeans, $14.39; wheat, $6.49.

Jeff Guilander, Jerseyville, Jersey County: Round three and most famers are getting close to putting this crop in Mother Nature’s hands. The early corn is knee high so the “spot in” idea is off the table. Overall, it seems everyone has some good corn and then some that we’re just going to hope for the best. At least now it is tall enough to start covering up the holes. I think weed control will become a big issue with the heavy rain diluting the early herbicide and no rain since to incorporate later applications. With my kids out of school, I may have to show them how to use a weed hook in a few weeks. Soybean planting is rolling along with most nearly finished or at least winding down. Overall conditions are good, but it is getting a little on the dry side.

Rick Corners, Centralia, Jefferson County: The local expert says about 75 percent of the beans are planted. That’s another thing I’ve never seen this early before. Earliest I ever remember being done with beans was the last week of May, and that was many years ago. I think I’ll check out my Mayan calendar and see what it says. Corn is all the way from kneehigh to not up yet. Surely some of it will be right. Some of the corn in the crusted ground kind of looks spindly. Wheat harvest probably will be the earliest on record.

Kevin Raber, Browns, Wabash County: No rainfall this past week. Crops are looking good so far, but with warm temperatures and growing crops, the soil moisture will disappear in a hurry. The wheat crop is moving quickly toward harvest. The low rainfall amounts and warm days are just what it needs. Randy Anderson, Galatia, Saline County: You could say a year makes a difference. Last year pumps were pumping water away from towns and fields, but now they are pumping it on some of the sandy ground in Gallatin and White counties, friends of mine told me. We are running about 8 inches behind normal. Corn still looks good, but some of the bean stands are struggling to come up on the hills. Wheat is really starting to turn on the hills and staying green in the valleys, so that will be a mess come harvest. On a positive note, hay making is going well with the mild temperatures and dry weather. Ken Taake, Ullin, Pulaski County: It was another dry week here in Pulaski County. No rain at all. We have stopped planting soybeans until it rains. The soils are just so dry and hard. There’s no chance that beans are going to have enough moisture to sprout and emerge. Some people are planting shallow in the dry soils, thinking that the beans will just lie there until it rains. Corn seems to be growing, but slowly, but we’ve also got corn that’s a foot tall that’s rolling in the heat of the day. I don’t remember ever seeing 12-inch corn rolling in the heat before, and this is only May. I guess we’ll see what Mother Nature gives us. Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com

Soybean planting well ahead of average pace BY DANIEL GRANT FarmWeek

Many far mers in Illinois picked up right where they left off from early corn planting and are planting soybeans at a blistering pace. Statewide, 44 percent of the soybean crop was planted as of the first of last week compared to the five-year average of 21 percent and just 12 percent at the same time last year. “Many soybean fields were planted last week,” said Ron

H a a s e, Fa r m We e k C r o p watcher from Iroquois County. Fourteen percent of the soybean crop was emerged last week compared to 1 percent a year ago. “A large portion of the soybeans have been planted in the area,” said Joe Zumwalt, a Cropwatcher from Hancock County. A stretch of wet weather earlier this month briefly delayed planting progress in some areas, but dry, warmerthan-normal conditions last

week accelerated field activity. And the recent weather pattern is expected to last through the month. “The pattern shows no sign of changing through May,” Mark Russo, meteorologist with Chesapeake Weather Services, told the RFD Radio Network. “We’re looking at warmer-than-normal temperatures” with highs in the 80s and even 90s in southern parts of the Midwest. Russo predicted chances of more rainfall activity this

month, although it could be scattered. He does not believe recent dryness, particularly in Southern Illinois, indicates the start of an extended dry period. Some farmers in areas of Illinois that received excessive rainfall in recent weeks were forced to replant fields or portions of fields. “Most of the corn is up and looks g ood, although there are some reduced s t a n d s,” s a i d Ja ke E va n s, sales agronomist with Steyer

Seeds in Jacksonville. Seed supply is not an issue for far mers who choose to replant, according to Evans. “South American production is in, so everybody’s got plenty of seed now,” he said. Statewide, corn planting as of the first of last week was 95 percent complete in the state, compared to the average of 65 percent. More than three quarters of the crop (76 percent) was emerg ed last week compared to just 19 percent at the same time last year.

Residual herbicide performance moisture-dependent BY BARRY NASH

Dry conditions persist throughout much of Illinois. In many cases, residual herbicides have been on the s o i l s u r f a c e f o r we e k s w i t h o u t receiving any significant rainfall. Since soil moisture is critical to activate residual herbicides, the key questions become: • Have I received enough moisture to activate my residual herbiBarry Nash cide? • If not, how much moisture do I need? • If I don’t receive enough moisture, when should I make my post-emergence application? Generally, most residual herbicides require at least ½ - 1 inch of precipitation in a single event for optimum activation. Ironically, multiple shallow rainfall events actually can be detrimental to performance. Shallow rainfalls can induce the germination of many small seeded weeds such as waterhemp, com-

mon lambsquarters and most grass species. While these weeds may receive enough moisture to germinate, it may not be enough activate the residual herbicide. Since most residual herbicides are absorbed through the roots or shoots, weeds that emerge and survive likely will require a post-emergence herbicide for complete control. However, be sure to recognize the herbicide’s “mode-of-action,” as some herbicides have “reach-back” potential. This is a term commonly used for residual herbicides that have the ability to absorb a herbicide through the roots and control the weeds after emergence. Those of us with gray hair may remember when

higher rates of atrazine were applied. The foxtails would get about ½ - 1 inch tall. You thought you might have to respray. But a little rain and a bright sunny day would result in excellent “reach-back” control of the foxtails. Regardless, if dry conditions persist, be sure to scout fields frequently. Remember, the timing of the post-emergence application is critical. Weeds greater than 6 inches in height can become extremely difficult to completely control. Inconsistent control easily can lead to the development of resistant weeds. Be sure to stay in contact with your local FS crop specialist and keep him or her informed of when and what residual herbicides were applied. The specialist can assist you with field scouting as well as planning for an unexpected post-emergence application. Barry Nash is GROWMARK’s weed science technical manager. His e-mail address is bnash@growmark.com.


FarmWeek Page 8 Monday, May 21, 2012

Wheat

Illinois wheat yield estimate a little disappointing BY DANIEL GRANT FarmWeek

Optimism about wheat yield potential was ratcheted down last week by participants of the Southern Illinois Wheat Tour hosted by the Illinois Wheat Association (IWA). USDA earlier this month estimated a statewide yield average of 62 bushels per acre. But IWA wheat tour participants last week predicted an average yield of 56 bushels per acre. The IWA yield estimate was based on the average of multiple samples taken at 71 different field locations in Southern Illinois. “I was a little disappointed,” said Dave DeVore of Siemer Milling in Teutopolis. “It’s not a bad crop, but probably just average.” Farmers and millers in recent weeks were hopeful the rapid maturity of the crop, due to above-average temperatures this spring, would translate to a bountiful harvest. The Illinois wheat crop as of the first of last week was 92 percent headed compared to the five-year average of 48 percent.

Participants in the Southern Illinois Wheat Tour examine a plant damaged by a foliar disease in a Montgomery County field. They are, from left, Mark Johnson and Greg Gholson, ag statisticians with the National Agricultural Statistics Service Illinois field office; Luke Curry and Jake Evans (holding plant) of Steyer Seeds; and Mark Miller of Mennel Milling Co. A variety of diseases and frost/hail damage are expected to limit wheat yield potential. The average yield was projected by tour participants at 56 bushels per acre. (Photo by Daniel Grant)

Tour participants instead found a variety of issues with the crop at different locations, including hail and frost damage, along with what could be the key yield robber this year — foliar diseases. Head scab ordinarily is the biggest threat to Illinois wheat,

but this year stripe rust and barley yellow dwarf could be among the most challenging diseases. “Leaf diseases were a little heavier than anticipated. We could tell a difference (during the wheat tour) between fields that were intensively managed vs. the fields that were not,”

DeVore said. “If a fungicide was lower,” DeVore said. sprayed, growers could see a 15But neither miller predictto 20-bushel yield difference.” ed a problem sourcing wheat Mark Miller and satisfying of Mennel customers. FarmWeekNow.com Milling Co. in The bins at To view video from the recent Mount Olive Mennel I l l i n o i s w h e a t t o u r, g o t o voiced similar Milling are F a r m We e k N o w. c o m . concerns durabout half full ing the tour. heading into “There’s a little more flag harvest compared to the usuleaf damage than I’d like to al quarter full. see,” Miller told FarmWeek as “This year, with quality conhe viewed plant samples in a cerns, we decided to carry Montgomery County wheat more wheat over,” Miller said. field. “It makes me worry about DeVore noted millers also test weight and yield potential.” can bring in wheat from outThe lower yield estimate side their usual territory. (the Illinois wheat crop last “I’m not concerned (about year averaged 61 bushels per the wheat supply),” DeVore acre) combined with fewer said. “We’ll find wheat. We acres (growers in coming may have to reach out a little weeks are set to harvest further than we like.” 630,000 acres compared to Wheat harvest generally is 765,000 last year) obviously expected to begin by the first point to a smaller crop. or second week of June, about “The Illinois wheat supply a week to 10 days earlier than compared to last year will be normal.

New varieties could boost wheat plantings in Illinois

The number of harvested wheat acres in Illinois, except for a peak of 1.15 million in 2008, have remained flat or declined during the past decade. Wheat acres in the state from 2002 through 2012 averaged 760,000 per year, down from the average of 1.1 million acres harvested annually from 1995 through 1999. This year, Illinois farmers are expected to harvest 630,000 acres of wheat, down from 765,000 a year ago. The previous year, 2010, harvested wheat acres in Illinois sank to a record-low 295,000. “The last few years we’ve had a rough time getting wheat acres to go in (due in part to challenging conditions during fall planting),” said Jake Evans, sales agronomist for Steyer Seeds in Jacksonville. Wheat growers also had to consider market conditions (corn and soybean prices in recent years reached historic highs) along with yield potential. The average state yield from 2001 to 2010 increased by at least 5 bushels per acre for corn and beans while the statewide average yield for wheat during the same period actually decreased by 5 bushels (from 61 bushels per acre in 2001 to 56 bushels in 2010). This year participants of the Southern Illinois Wheat tour predicted the wheat yield would average just 56 bushels per acre due to damage from foliar diseases, frost, and hail. “The seed supply this year might be tight (for fall planting),” Evans said. However, the situation could change in future years as research into wheat varieties could boost yields and income potential. Evans said seed companies currently are in the process of developing scab-resistant varieties. “That will be big,” he said. “Scab is the most (yield) limiting disease in Illinois.” Evans noted more intensive management of wheat (including timely fertilizer applications and disease management) also could help boost yields around the state. — Daniel Grant


Page 9 Monday, May 21, 2012 FarmWeek

rural health

Arthritis growing farm threat at a younger age BY MARTIN ROSS FarmWeek

Amber Wolfe, an AgrAbility project coordinator with the Arthritis Foundation, urges farmers to begin prepping immediately for the 2012 harvest. While improved mechanization and technology have helped lighten the ag labor load, Wolfe cites an even earlier onset of osteoarthritis among many younger farmers compared with previous generations. Many may not even realize they’re candidates for potentially debilitating joint pain, the former Hoosier farm girl told FarmWeek.

May is National Arthritis Awareness Month. Arthritis is second only to heart disease as a cause of U.S. work disability, and more than half of those with arthritis are under 65. The most prevalent form is osteoarthritis, caused by cartilage destruction. Though arthritis often is associated with strenuous and/or repetitive activity, Wolfe notes youthful injuries also can sow the seeds of future problems. “A lot of people in agriculture don’t recognize arthritis as a disabling condition,” she advised. “They don’t see an amputation; they don’t see a wheel-

Managing the farm and osteoarthritis Changes in lifestyle and livelihood can help keep arthritis pain at bay, according to Amber Wolfe, AgrAbility project coordinator with the national Arthritis Foundation. “The problem with osteoarthritis is that it is chronic,” Wolfe stressed. “Once it’s been diagnosed, once it’s there, it’s there. The only way to remove it completely is a total joint replacement. But there are lots of therapeutic things that can be done before it gets to that point.” The first step is detection. A general practitioner can diagnose basic joint problems, but Wolfe recommends consulting an orthopedic specialist, a rheumatologist, or a occupational therapist more familiar with joint mechanics and, often, “the trials and tribulations of being a farmer.” • Remedies and relief. Over-the-counter, non-steroidal medications can temporarily relieve pain, and Wolfe notes some farmers request joint injections during peak work periods. She nonetheless stresses the case-by-case nature of arthritis and the importance of personalized diagnosis and treatment. “Farmers have to see a medical professional,” she said. “Its not something they can handle on their own.” • Pounds and pressure. Weight loss can significantly reduce pressure on knees or hips. One pound’s loss reportedly can reduce knee joint stress by four pounds. • Rigor and routine. Modifications in the farm work routine can reduce arthritis development or pain. Use labor-saving devices and easy-to-grip tools. Alternate difficult and lighter chores to conserve energy and strength. Sit on a truck tailgate while resting in the field, rather than standing. Finish all chores in one area before moving to another. Gripping objects for an extended period can stress joints. Consider adding padding to control levers or handles to reduce tension or use the palm or heel of the hand to push or pull, rather than grip, controls. • Working and working out. Regular exercise can help arthritis sufferers maintain optimal mobility. Proliferation of gyms, workout centers, and other exercise facilities in rural communities offers farmers an opportunity to keep joints limber on a sustained, regular schedule. However, the wrong exercise can do more harm than good. Wolfe warns against high-impact workouts such as running or step aerobics. The Arthritis Foundation offers “life improvement” classes across the U.S., emphasizing activities such as low-impact group walking, tai chi (a form of Chinese martial arts), or swimming — ideally in heated water. “The water adds buoyancy the body needs to be able to perform different maneuvers and to get resistance in the muscles,” Wolfe explained. “If the muscles and tendons and ligaments that surround the joints can be strengthened, then the joint itself is strengthened.” — Martin Ross

chair. It’s just, ‘Wow, I’m tired. I’ve been working this farm for so long. I’m stiff, I’m in pain, I can’t reach as far as I used to.’ The more those things start to add up, the more trouble they’re going to have trying to complete the tasks on the farm. “That’s when it becomes a disability, because it keeps them from working on their machinery, it keeps them from being as efficient when they’re feeding their livestock. In farming, the bottom line is efficiency.” For information on arthritis and farmers, visit {www.arthritis-ag.org}. Arthritis and Agriculture: A Guide to Understanding and Living with Arthritis, is available at

{www.agrability.org/Resources/ arthritis}. Ranchers and horsemen frequently develop “wear and tear” in the hips, backs, and knees, and “milker’s knee” remains a familiar ailment even in an age of dairy parlor automation. However, grain producers are far from immune to joint trauma and wear, and in fact, Wolfe argued stress on farmers’ knees “is probably the No. 1 problem we have to deal with.” Beyond the impact of repeatedly climbing into and jumping out of tractor and combine cabs, hours of sitting in vibrating equipment can contribute to osteoarthritis development “whether you’re physically steering (machinery) down the rows or not,” she said. Further, osteoarthritis can develop in individual joints, where cartilage has not healed correctly following an accident or other trauma. “You could have an injury in a chute with some livestock when you’re 15 and not have a problem until

you’re 25 or 30,” Wolfe warned. A sound diet and fitness are key in slowing development of or staying field-ready with osteoarthritis (see accompanying story). But the immediate pre-planting/pre-harvest period is not the time to begin a more intensive new exercise regimen.

‘It keeps them from working on their machinery, it keeps them from being as efficient.’ — Amber Wolfe AgrAbility

“It’s something that should be worked up to very gradually,” Wolfe said. “Overusing those joints even in a good exercise situation is not going to be useful.”


FarmWeek Page 10 Monday, May 21, 2012

Livestock

Bullish cattle report helps relieve market uncertainty BY DANIEL GRANT FarmWeek

Cattle producers and feedlot managers last week probably released a collective sigh of relief. USDA on Friday issued a market-friendly cattle on feed report that pointed to lower beef supplies and strong cattle prices through the end of this year and into 2013. Cattle and calves on feed as of May 1 totaled 11.17 million head, down 1 percent. Placements in feedlots totaled just 1.52 million head, down 15 percent from a year ago and about 3 percent below trade expectations. “Obviously, the numbers are friendly to the cattle market,” said Chris Hurt, Purdue

‘ O bv i o u s l y, t h e numbers are friendly to the cattle market.’ — Chris Hurt Purdue University economist

University ag economist. Meanwhile, prior to the report, strong demand helped drive beef prices higher. Beef cutout values on Thursday were up 9 percent for choice and 8 percent for select compared to a year ago, authors of

the CME Group’s Daily Livestock Report noted. “It helps reinforce the cattle market after some disappointing and disturbing media attention,” Hurt said. “For most of April there was grave uncertainty cattle producers and feedlot managers had about demand.” Cattle futures plummeted in March and April due in part to media-induced confusion among consumers about lean finely textured beef, which was labeled by some as “pink slime.” The situation was followed in April by the fourth confirmed case of BSE in a U.S. cow. “A combination of things depressed the cattle futures market,” Hurt said. “There was sheer uncertainty about what

consumers would do. The answer is — we didn’t really see much impact (to beef demand). “That set us up, starting in late-April and early-May, for a major recovery,” he noted. Hurt projected cattle prices the rest of the second quarter would hold around $120 per hundredweight and increase to $125 per hundredweight by the fourth quarter. Overall, Hurt predicted cattle prices this year would average $123 per hundredweight and rally next year to an average of $128 per hundredweight. “It looks like really tight supplies of beef will continue to be the norm,” the economist said. “Next year we could move on up in prices.” Feedlot managers this spring had little incentive to place more animals in their lots due to lower futures prices, high feed costs in recent months, and an early spring and improved pasture conditions that encouraged produc-

ers to keep calves in pastures. “The report indicates that in the next six to nine months, we won’t have as many cattle,” Hurt said. He projected U.S. beef production this year could decrease 3 to 4 percent.

Livestock industry shows signs of rebounding in Illinois The state’s livestock industry, which in recent years was hurt by high feed prices and record input costs, is showing signs of bouncing back and even expanding. Nic Anderson, business developer for the Illinois Livestock Development Group (ILDG), recently told FarmWeek the number of intents to construct or expand livestock facilities so far this year is at a three-year high. Illinois farmers the first quarter this year filed 45 notices to construct or expand livestock facilities, which is half the total from all of last year when 90 construction/expansion plans were filed statewide. “We’re seeing an increased pace (to construct and expand livestock facilities) from the last two years,” Anderson said. “The cost of production (which has decreased in some areas due to lower feed/grain prices) and reactions to market signals are telling them (livestock producers) this is the time to do it,” he continued. “And it’s been across all species.” The breeding hog inventory in the state through the first quarter this year was up 9 perNic Anderson cent compared to the same time a year ago, USDA reported. Meanwhile, Illinois farmers last year added about 18,000 head of dairy cattle to the herd statewide. “Most of the growth (in the dairy sector) was family farmers growing and expanding,” Anderson said. “We saw similar numbers in beef herd expansion, mostly from feeding operations.” There also are plans for the construction of a large egg-laying operation near Loda and turkey barns near Strawn, Anderson reported. The renewed interest in livestock production in the state, according to Anderson, is due in part to improved economic conditions around the world that prompted meat consumption the past two decades to grow about 1.1 annually; the availability of ample corn and soybean crops to help reduce feed costs; and Illinois’ central location in the nation that helps reduce transportation costs. “(Growth of the livestock industry) helps revitalize Illinois’ economy,” Anderson said. Overall, the livestock industry contributes about $3.5 billion each year to the state’s economy, according to the University of Illinois. But livestock receipts on farms in the state the past 10 years fell from $2.3 billion to $1.7 billion, according to the ILDG website {www.illinoislivestock.org}.


Page 11 Monday, May 21, 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 21, 2012

events

Annie’s Project offering classes in Central Illinois

Some of the more than 400 participants in the recent IAA Foundation 5K Grow and Go event begin their run in the parking lot of the Illinois Farm Bureau building in Bloomington. (Photo by Cyndi Cook)

IAA Foundation’s fund-raising race a success More than 400 participants, supporters, and volunteers joined the IAA Foundation’s second annual 5K Grow and Go May 12 at the Illinois Farm Bureau headquarters, Bloomington. The activity is a fundraiser for Illinois Agriculture in the Classroom (IAITC). Early estimates indicate more than $18,000 was raised for

the upcoming year’s IAITC program. Top runners took home unique tractor awards. During the event, children and adults enjoyed IAITC learning stations, commemorative farm scene photographs, and breakfast compliments of Eurest Dining Services and Prairie Farms Dairy.

Annie’s Project, an educational program for farm women, will offer classes in Central Illinois starting Thursday and concluding on June 28. The class is limited to the first 20 registrants. Classes will meet each Thursday from 6 to 9 p.m. at the 1st Farm Credit Building, Normal. The program is designed to help farm women become better business partners in managing their farm assets. The program combines formal instruction and informal discussion as women share their experiences. Topics for this Annie’s Project include: personality analysis, landownership and leasing issues, how property is held in ownership, helpful agencies to know, construction of balance sheets and other financial documents and records important to farm operations, preparing for retirement, estate planning, and grain marketing. All topics are introduced at basic levels. Participants are invited to bring their own computers. Otherwise, a computer will be provided for hands-on experience in learning about spreadsheets. Computer experience is not required, and the class offers an opportunity to learn more about how computers and on-line resources can be used. Class partners include the Farm Bureaus of McLean and Livingston counties, University of Illinois Extension of Livingston, McLean, and Woodford counties; 1st Farm Credit Services, Farm Services Agency (FSA), Risk Management Agency (RMA), and Annie’s Project Education for Farm Women. Funding is provided in part by 1st Farm Credit Services, RMA, and FSA. The cost is $75 per person. To register, call 309-663-8306 and say, “I want to register for Annie’s Project” or register online at {web.extension.Illinois.edu/lmw}.

Conservation demonstration farm plans open house A conservation open house will be from 8:30 a.m. to 3 p.m. Wednesday, June 13, at the Franklin farm near Lexington. The private 250-acre farm has several installed conservation practices, including constructed wetlands, grass waterways, and field borders. Two-hour tram tours will be offered in the morning and again in the afternoon. Tour reservations are requested by June 6 on a first-come, first-served basis. Topics will include the use of wetlands, prairies, and woodlands with agricultural land and available cost-share programs. A noon program will be provided. The sponsors include the McLean County Soil and Water Conservation District (SWCD), the Natural Resources Conservation Service, the Nature Conservancy, Monsanto, and the Franklin family. For reservations or more information, contact the SWCD at 309-452-0830, extension 3.

Auction Calendar Wed., May 23. 5 p.m. Farm machinery. Gary McCarrel, EDINBURG, IL. Cory Craig, Auctioneer. www.corycraig.com Tues,. May 29. 1 p.m. McDonough Co. Land Auc. MACOMB, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Thurs., May 31. 10 a.m. DeKalb Co. Land Auction. SOMONAUK, IL. www.mgw.us.com Sat,. June 2. 9 a.m. and 1 p.m. Consignment Auction and Dale and Dennis Gass Farm Sell-Out, MURPHYSBORO, IL. Canning Auctions. www.canningauctions.com Tues., June 5. McLean Co. Farmland Auc. Steinlicht & Baker Farms, COLFAX, IL. Soy Capital Ag Services. www.soycapitalag.com Wed., June 6. 10 a.m. Knox Co. Land Auction. Heirs of W. Robert Jencks, RIO, IL. Van Adkisson Auction Service, LLC. www.biddersandbuyers.com

Wed., June 6. 10 a.m. Ford Co. Farmland Auc. GIBSON CITY, IL. Busey Farm Brokerage. Thurs., June 7. 10 a.m. Logan Co. Land Auction. Hertz Farm Mgmt. Inc. www.hfmgt.com Fri., June 8. 10 a.m. Greene Co. Land Auction. Claire-Jane Trust, CARROLLTON, IL. Worrell-Leka Land Services, LLC and Darrell Moore, Auctioneer. worrellleka.com Tues,. June 12. Will Co. Farmland Auction. Salzmann Farm. Soy Capital Ag Services. www.soycapitalag.com Wed., June 13. 7 p.m. Real Estate Auction. Fort Russell Mgmt. LLC, BETHALTO, IL. Henke Auction & Realty, LLC. www.henkeauction.com Thurs., June 14. McLean Co. Farmland Auc. John Cox Farms. Soy Capital Ag Services. www.soycapitalag.com Thurs., June 14. McLean Co Farmland Auction. Soy Capital Ag Services. www.soycapitalag.com


Page 13 Monday, May 21, 2012 FarmWeek

from the counties

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UREAU — Bureau and Stark County Farm Bureaus will sponsor a bus trip Wednesday, June 20, to Chicago for a Chicago Architecture Foundation River Cruise. Cost is $100, which is due on registering. Call the Farm Bureau office at 815-875-6468 by Wednesday for reservations or more information. • Farm Bureau will sponsor a free portrait session for members from 3 to 8 p.m. Tuesday and Wednesday, June 12-13, at the Farm Bureau office. One free portrait per family is allowed. Appointments are on a first-come, first-served basis. Call the Farm Bureau office at 815875-6468 for reservations or more information. • Bureau and Lee County Farm Bureaus will sponsor their annual golf outing at 9 a.m. Friday, June 29, at Timber Creek, Dixon. The tournament will be a four-person scramble. Cost is $200, which includes golf, cart, and lunch. All proceeds will benefit the Ag in the Classroom programs. Call the Farm Bureau office by Friday, June 22, for reservations or more information. • The Bureau and Henry County Farm Bureau Foundations will sponsor a Tractor Trek Saturday and Sunday, June 23-24. Cost is $75. Deadline to register is June 8. Call the Farm Bureau office for a registration form or more information. ARROLL — The Women’s Committee will sell hamburgers for 15 cents from 11:30 a.m. to 1 p.m. Friday at the Farm Bureau office. The price represents the value of the corn in the feed used to produce the cattle. Orders for more than 12 hamburgers must be placed in advanced. A meal including the sandwich, chips, and drink may be purchased for $1. Call the Farm Bureau office for more information. • Farm Bureau will sponsor a bus trip Friday, July 13, to see the Chicago Cubs vs. the Arizona Diamondbacks at Wrigley Field. Cost is $70. Call the Farm Bureau office at 815244-3001 or go online at {www.carrollcfb.org} for more information. HAMPAIGN — Champaign and Vermilion County Farm Bureaus will sponsor a master grain contracts meeting at 6 p.m. Tuesday, June 19, at the Vermilion County Farm Bureau, Danville. Laura Harmon, Illinois Farm Bureau general counsel, and Jerry Quick, a retired IFB attorney, will be the speakers. Call the Farm Bureau office at 217-352-5235 for more information.

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ENRY — Henry and Bureau County Farm Bureau Foundations will sponsor a Tractor Trek Saturday and Sunday, June 23-24. Proceeds will benefit the Ag in the Classroom programs. Cost is $75, which includes lunch and refreshments. Call Dave Doty at 815-739-5983, the Bureau County Farm Bureau office at 815-875-6468, or the Henry County Farm Bureau office at 309-937-2411 for more information. NOX — A 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. IVINGSTON — In observance of June Dairy Month, the Young Leaders will sponsor a “breakfast on the farm” from 7 to 10 a.m. Saturday, June 2, at the Kilgus Farm, 21471 E 670 N Road, Fairbury. A full breakfast with juice, milk, and coffee will cost 75 cents, the value of the products used in the breakfast. Call the Farm Bureau office for more information. EORIA — The Marketing Committee will sponsor a market outlook meeting at 6:30 p.m. Tuesday, June 19, at the Farm Bureau Park. Darren Frye, Water Street Solutions, will be the speaker. Cost is $5, which includes a rib-eye sandwich meal. Tickets are available at the Farm Bureau office or from a board director. • 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 on the website {www.peoriacountyfarmbureau.org}. Deadline to return reservations to the Farm Bureau office or to Frank Learned is Friday, June 1. 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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AYNE — The Hamilton, Wayne, and White County Farm Bureaus, and University of Illinois Extension will sponsor two “Leasing Farmland for Oil and Gas Production” meetings on Tuesday. 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 618-842-3342 or 618-643-3416 for reservations or more information. HITE — The Hamilton, Wayne, and White County Farm Bureaus, and University of Illinois Extension will sponsor two “Leasing Farmland for Oil and Gas Production” meetings on Tuesday. 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 618-8423342 or 618-643-3416 for reservations or more information.

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2012 HerbFest slated June 9 in Springfield The Illinois Herb Association is sponsoring the 2012 HerbFest from 9 a.m. to 3:10 p.m. Saturday, June 9, at Washington Park Botanical Garden in Springfield. The event will feature sessions hosted by a variety of speakers, including medical social worker Lynn Waters; Susan Saniie of Dayempur Herbals; Cathy Lafrenz, owner of Miss Effie’s Country Flowers and Garden Stuff; and Deborah Niemann-Boehle, author of Homegrown & Handmade: A Practical Guide to More Self-Reliant Living. “Each year, the Illinois Herb Association’s HerbFest seems to grow, and we don’t expect this year to be an exception — especially with our excellent line up of speakers and presentations,” said Kay Carnes, president of the association. The event is open to anyone wishing to learn more about growing or using herbs. Registration is $20 for Illinois Herb

Association members and $30 for non-members. Pre-registration is due by June 1 and includes lunch. Onsite registration is from 8:30 to 9 a.m. the day of the event but does not guarantee lunch. Those interested in attending may download a registration form at {http://www.specialtygrowers.org/illinois-herb-association.html}, or may contact Charlene Blary, Illinois Herb Association, at 309-557-2107 or by email at cblary@ilfb.org.


FarmWeek Page 14 Monday, May 21, 2012

profitability

Exposing the myths of the ‘yellow bucket’ BY TOM DREW

We’ve all seen them. Perhaps some of you have even purchased the “yellow bucket!” I’m talking about the low-price, uniTom Drew versal tractor hydraulic fluid (THF) sold in various farm supply stores across the Midwest. In some cases, yellow bucket THF does not meet the requirements of today’s hightech tractors. Phrases such as “may be used,” “recommended for,” and “can be used”

describe the performance characteristics of the product found in the yellow bucket. Included are several wellknown OEM specifications on the bucket, most of which are outdated. One product recently tested in a laboratory was found to have a viscosity index (VI) of 50. VI is a measure of a fluid’s viscosity change relative to temperature. The higher the VI, the less a fluid’s viscosity changes. A high-VI lubricant will not thin out as readily at high tem-

peratures and will not thicken as readily at low temperatures. High-VI oils are also much better at controlling high temperature oxidation. The VI rating of higherquality THF typically is above 130. What happens if you use a THF with a VI of 50 when it gets extremely cold? Excessive wear on critical system components as thick, viscous oil will not flow properly. Use of this product during extreme heat in summer months also will produce excessive wear, due to the lubricant being so thin

IDOA plans agrichemical collections in eight Northern Illinois counties Residents of eight Northern Illinois counties may dispose of unwanted agrichemicals for free through the Illinois Department of Agriculture’s (IDOA) agricultural pesticide collection program. The registration deadline is July 13. Collections will be scheduled in late summer for Boone, DeKalb, Kane, Lake, Lee, McHenry, Ogle, and Winnebago counties. The program, which rotates among counties,

is open to farmers, retired farmers, nursery owners, private pesticide applicators, structural pest control applicators, and landowners who found unwanted ag pesticides on their property. Warren Goetsch, chief of IDOA’s environmental programs bureau, advised individuals to participate because there is no cost to properly dispose of agrichemicals and the State of Illinois will

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.

Range Per Head $26.38-$46.50 $56.59-$60.95

Weighted Ave. Price $38.39 $57.57

This Week Last Week 136,990 104,965 *Eastern Corn Belt prices picked up at seller’s farm

Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $78.57 $73.82 $58.14 $54.63

Change 4.75 3.52

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week n/a 119.00 n/a 118.00 120.00 -2.00

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week 148.38 148.71 -0.33

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 120-185 lbs. for 136-162 $/cwt. (wtd. ave. 148.39).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 05-10-12 20.3 28.0 26.8 05-03-12 10.7 24.4 29.6 Last year 6.0 30.3 38.3 Season total 1120.5 968.6 1136.3 Previous season total 1372.6 1197.7 1229.4 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

assume liability for their proper disposal. Participants must register the products they plan to dispose of by July 13. Registration is required to allow the waste disposal contractor to prepare for different kinds of materials. Registration forms may be obtained by calling IDOA’s pesticide hotline at 800-6413934 or visiting one of the collection sponsors. Sponsors include the Farm Bureaus in Boone, DeKalb, Kane, Lake, Lee, McHenry, Ogle, and Winnebago counties. Completed forms should be mailed or faxed to the Illinois Department of Agriculture, State Fairgrounds, Box 19281, Springfield, Ill., 62794-9281. The fax number is 217-5244882. Registered participants will receive a reservation card indicating the date, time, and location for their collection.

it does not provide a sufficient surface film to prevent friction between moving metal parts. More laboratory testing determined the amount of additives in the yellow bucket fluid contained approximately one-third of the additives needed in modern tractor transmission/hydraulic systems. Just like in engine oils, additives in THF protect against the effects of wear, oxidation, and moisture. The popularity of yellow bucket THF typically is based on price. It can be blended at a much lower cost because of a lower quantity of additives and less-expensive base oils. Some suppliers may use

cheaper naphthenic-base oils or “line flush” in their formulations, all to make them more attractive to price shoppers. Buying quality lubricants is more economical in the long run as they protect your equipment from excessive wear and enhance overall performance. The expression “You get what you pay for” expression applies to the yellow bucket. For longterm dependability and profitability, it pays to protect your investments by consulting with your local FS energy specialist. Tom Drew is GROWMARK’s lubricants marketing manager. His e-mail address is tdrew@growmark.com.

CME Group modifies plan to expand hours CME Group last week modified its plan to expand trading hours of grain and oilseed contracts in response to industry concerns. Pending certification from the Commodity Futures Trading Commission (CFTC), the group will offer expanded market access to a variety of Chicago Board of Trade future and options 21 hours per day. The previous plan called for trading 22 hours per day. “This important change will provide time during normal business hours for grain and feed processing operations and other merchants to reconcile their trading accounts and perform other required accounting and back-office operations without incurring significant additional expenses,” said Randall Gordon, president of the National Grain and Feed Association. Electronic trading hours for corn, soybeans, wheat, soy meal, soy oil, rough rice, oats, and ethanol futures and options, upon CFTC approval, will be from 5 p.m. to 2 p.m. Sunday through Friday. Daily settlements will continue to be based on market activity at or around 1:15 p.m. each day. Open outcry trading hours will remain the same, 9:30 a.m. to 1:15 p.m. Monday through Friday.


Page 15 Monday, May 21, 2012 FarmWeek

PROFITABILITY Corn Strategy

CASH STRATEGIST

Bean, soy meal prices adjusted for dollar Sometimes it pays to step back and look at a market from a different perspective. We occasionally look at grain prices as they relate to gold, crude oil, and other currencies, among other things. It helps to put a long-term perspective on the value of a given market. Recently, we took a look at soybeans and soybean meal prices adjusted for the changing value of the dollar. This offers a broad insight into how buyers outside of the U.S. see soybeans and soymeal priced in their currency. This isn’t an exact picture as the dollar index we use to adjust prices is a trade-weighted index based on six major trading partners in Europe, Canada, and

Japan. It does not include China. But outside of China, buyers of soybeans and soybean meal see prices at the 2008 and 2009 highs, respectively. Those levels impacted demand then, and we’d expect they probably are this time as well. China is a bit of a different situation because the Chinese didn’t become major players until recent years. But their soybean and soybean meal futures recently were at the highs that have persisted since the worldwide 2008 collapse. Chinese pork prices have been steadily declining over the last three months, enough so that the government has stepped in to support the market. But with feed inputs being relatively high priced, one has to consider the possibility producers might cut production, which would cut into soybean meal and soybean demand over the next year.

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Cents per bu.

ü2011 crop: The latest rally has the character of a short-covering wave, making the market vulnerable to renewed weakness going forward. Use prices above $6.25 on July futures to make catchup sales. ü2012 crop: December has resistance at $5.28 and $5.35. Sales stand at 40 percent. Use rallies into that range for making catch-up sales. We prefer hedge-to-arrive contracts for making sales, but plan to tie up the basis by mid-summer if a large crop looks likely. vFundamentals: The weather rally in the wheat market was responsible for the recent surge in corn prices. However, strength will be difficult to sustain considering the new crop is off to a very good start. Warm, dry weather throughout the Midwest has allowed planting to progress rapidly. But that generally dry pattern has ignited early concern for new-crop yields. The prospect of Chinese business lurks in the background, but the early prognosis for the Chinese crop points to a bigger crop than last year.

Soybean Strategy

ü2011 crop: The inability to sustain upside energy in the wake of the recent USDA report is a sign this bull market is “out of gas” for now. We continue to urge you to sell remaining old-crop soybeans other than any “gambling stocks” you want to hold into summer. ü2012 crop: Use rallies above $13.20 to get sales up to recommendation. vFundamentals: On May 17, China bought 480,000 metric tons (17.7 million bushels) of soybeans, purported to be the ninth largest single-day sale in history. The Chinese government is preparing to sell soybeans from government inventory to help pressure domestic soybean and product prices. Dry Midwestern weather may be causing some early concern, but it is allowing the new

crop to be planted at a historically fast pace. ûFail-safe: Make sure sales are at recommended levels if July futures close below $14.

Wheat Strategy

ü2012 crop: The shortterm trend in wheat turned higher, but gains primarily came from futures-based short-covering. Sales are 45 percent complete. Use this rally for making catch-up sales. We may make an additional sale soon; check the Cash Strategist Hotline frequently. Producers selling 100 percent off the combine need to be aggressive making sales on rallies. vFundamentals: The

trade has been focusing its attention on dryness in Russia and parts of the Ukraine, persistent problems in parts of Europe, and renewed dryness in the Southern Plains. However, some of the smaller crop forecasts for Kansas may be bordering on the extreme with harvest set to begin. Export business for U.S. wheat has been steady with weekly sales coming in within expectations at 711,400 metric tons (26.1 million bushels). Going forward, wheat’s upside could be limited if corn does not rise, because the two still are competing in the feed market.


FarmWeek Page 16 Monday, May 21, 2012

perspectives

Managing nitrogen lowers costs and maintains yields

Illustration by Sharon Dodd

Insects: Could they be what’s for dinner? Back in biblical times John the Baptist was a participant. Long before European settlers showed up in the so-called New World, so were Native Americans. We’re talking about entomophagy or eating insects. Yes, according to Old Testament biblical accounts, John the Baptist wandered in the wilderness and chowed down on locusts and wild honey. I suppose one could argue that John didn’t have much in the way of food choices available so he had to make do. Locusts, called grasshoppers here in the U.S., would have been plentiful. These insects were so common and numerous as to constitute one of the biblical plagues inflicted on the Egyptians of the time. On occasion, Native Americans also were said to TOM TURPIN have engaged in the eating of insects. It was the massive emergences of periodical cicadas that attracted the gustatory attention of these people. Despite the historical precedent for using insects as a food item, the practice is not currently widespread in some parts of the world. Modern people, in general, seem to have an aversion to eating insects. Why is not totally clear. However, most people seem to enjoy eating the insect cousins that live in the sea. I’m referring to shrimp and lobsters. These sea creatures and insects are both arthropods, animals with an exoskeleton, antennae and jointed legs. So we shun eating the land-dwelling arthropods but pay good money to dine upon the arthropods of the sea! At least we for the most part do not, like many other animals such as birds and frogs, intentionally eat insects. Intentionally is the operative term because most people do consume insects on a regular basis. The weak of stomach and insect haters may want to stop reading here. As it turns out, foods of plant origin may include insects or insect parts. So much so that years ago the U.S. Food and Drug

Administration began publishing a document called “The Food Defect Action Levels.” This document lists the maximum “levels of natural or unavoidable defects in foods for human use that present no health hazard.” Here are a couple of examples. Peanut butter: average of 30 or more insect fragments in per 100 grams. Tomato juice: average of 10 or more fly eggs, or five or more fly eggs and one or more maggots, or two or more maggots in 12 subsamples of 100 grams. These are the defect action levels; anything below that is OK to eat. It is apparent we eat pieces and parts of insects on a regular basis. So why don’t we intentionally consume insects? It might be a general disdain for insects, the idea that such food is dirty or just that we have never done so. As a food item, insects are high in protein and low in fat, and contain fiber and vitamins —- nutritious food by any measure. Consequently, some people have promoted insects as a human food source and a way to provide more human food. Books on this subject date back more than a half century. In 1951, A. S. Bodenheimer wrote the book “Insects as Human Food.” In 1971 R. L. Taylor authored “Butterflies in My Stomach,” complete with recipes. Two more recent titles are “Man Eating Bugs: The Art and Science of Eating Insects” by Peter Menzel and “Eat-aBug Cookbook” by David George Gordon. Professor Gene DeFoliart started a food insect website. Insect festivals around the U.S., including Bug Bowl at Purdue University, have incorporated insect-cooking and -eating demonstrations as part of the festivities. Some people have even suggested that insect cultures might be a way to provide a continuous food source for future space travelers. Tom Turpin is a professor of entomology at Purdue University, West Lafayette, Ind. His e-mail address is turpin@purdue.edu.

When I’m driving my combine in the fields or reading about new farming methods at home at the end of a long day or showing my children the places where their father, grandfather, great-grandfather, and even their great-greatgreat-great-grandfather farmed, I’m also thinking about how best to preserve our agriDOUG cultural heritage MARTIN for my family. In fact, I learned the importance of this conservation strategy from my dad, Jeff, who today is my partner in our family’s corn and soybean business that includes about 5,000 acres of Central Illinois farmland. In practice, our conservation strategy means conserving farmland by continuing to refine the methods that my father initiated. We keep working to manage the amount of nitrogen fertilizer we use and take steps to control runoff. We use strip-till and no-till cultivation to keep the soils healthy and less vulnerable to rain and wind. That’s not just feel-good talk, either. That’s good business. These methods let us reduce the number of times our tractors must pass back and forth on the fields we cultivate. Fewer trips along the corn and soybean rows saves fuel, labor, and wear-andtear on machinery. It lowers our costs by about $8 to $10 per acre. With 5,000 acres, the savings add up quickly. Back in the 1980s, when I was growing up, my father became very concerned as he watched wind and rain start to sweep away some of our prime topsoil. Unchecked, it would threaten our ability to keep our farming tradition alive. And that worried my

father as much as it does me today. Our roots in this business and this community run deep. Our family has been in the Mount Pulaski area for nine generations and I am a sixth generation farmer. We take our heritage seriously. When I’m thinking about how to lower our impact on the environment, I’m keeping our seventh generation of farmers in mind. But it’s not just about us here in Central Illinois. We’re part of the Mississippi River Basin that touches 31 states. Farmers increasingly have become aware that we can’t allow excess fertilizer to wash into the runoff. Soil and water are essential to our business and our heritage, and we want to conserve both. While the general public may not know that low-impact tilling and better nitrogen management techniques are gaining more converts, my father and I can see the effect on landowners who had been hesitant to lease their acreage. When they hear about our ecologically responsible practices, it eases concerns. Of course, no method is perfect for every farmer or every field. My father and I still experiment and make adjustments each season, and we network with other farmers to hear about their experiences. We encourage all farmers to learn about and try out these methods. Together, we can safeguard our fields, our finances, and the quality of life along our rivers and streams. Logan County Farm Bureau member Doug Martin, his wife, Erin, and his parents, Jeff and Jean, operate Martin Family Farms (www.martinfamilyfarms.org) in Mt. Pulaski. They have been honored several times for environmentally sound farming.

“You felt tightness, burning, and then a pop? Looks like you pulled a calf.”


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