THE IllINoIS Department of Agriculture’s future hinges on reforming Medicaid and the state pension system, the IFB board was told last week. .........................3
To proTEcT their neck and ears from the ravages of the sun, far mers should wear a broadbrimmed hat, says a dermatologist. ................................................5
IllINoIS Ag IN THE Classroom should fit nicely with new learning standards to be adopted by the state over the next two school years. ..................................................11
Monday, May 28, 2012
Two sections Volume 40, No. 22
Stabenow hopes to ensure South doesn’t rile again BY MARTIN ROSS FarmWeek
Senate Ag Committee Chairman Debbie Stabenow (DMich.) is working to calm anxieties south of the Mason-Dixon line so that farm state lawmakers can move smoothly toward a Labor Day farm bill deadline. Stabenow recognizes her committee’s farm bill proposal “is still going to have to go to a (House-Senate) conference committee to work out differences,” Illinois Farm Bureau President Philip Nelson said last week in an RFD RadioFarmWeek interview. Stabenow hopes to reconcile regional differences prior to scheduled Senate floor debate in June and well before conferees convene, he suggested. Senate Majority Leader Harry Reid (DNevada) is expected to schedule farm bill floor debate in June, and if that occurs, Nelson suggested the House soon would follow suit. Existing concerns are focused in the rice and peanut sectors (and to a lesser extent, some cotton producers), who see the Senate-proposed Agricultural Risk Coverage (ARC) program offering far greater benefits for Midwest growers. Facing likely elimination of farm direct payments, rice and peanut interests have explored the possibility of some type of continued, commodity-specific
countercyclical/target price program. One proposed option would trigger assistance if prices fell below $10.50 per hundredweight of rice and $495 per ton of peanuts — well below levels growers have sought. “I think there is agreement both in the House and Senate about (proposed) consolidation of conservation programs from 23 to about 13,” Nelson said. “I think there’s agreement that there need to be some efficien-
FarmWeekNow.com Listen to Matt Kaye’s report on farm bill development at FarmWeekNow.com.
cies gained in nutrition as we cut about $4 billion or so out of those programs. “It really comes down to Title I (the farm bill commodity title). We need to get some resolve there if we’re going to try to move the farm bill before election. And we are concerned about what the floor fight might look like.” Nelson cited continued talk of capping crop insurance payments, slashing premium subsidies, or tying program eligibility to individual annual adjusted gross income, especially as the deficit-focused Senate “Gang of Six” continues to seek budget savings.
Gang of Six member Tom Coburn (R-Okla.) authorized a recent Government Accountability Office study of federal crop insurance costs. The group also includes Senate Majority Whip Dick Durbin, a Springfield Democrat, and Sen. Saxby Chambliss (R-Ga.), a former Senate Ag Committee chairman who is leading southern farm bill negotiators. Chambliss acknowledged Stabenow’s desire for a timely Senate farm bill vote, but warned that “without a bloc of southern votes, it’s going to be difficult.” While seeking “a bridge to try to get to conference,” the Georgia senator warned “it’s got to be something meaningful.” Beyond ARC, the Senate Ag proposal includes a special program carve-out for cotton — a Stacked Income Protection Plan (known as STAX) option for upland cotton growers similar to countybased crop insurance coverage. University of Illinois ag economist Gary Schnitkey noted projections that STAX would offer greater per-acre payments than would be triggered “under ARC for corn, soybeans, and wheat.” In any event, the 2012 farm program would appear to be a moving target. Nelson advises “there are still details evolving
around ARC,” and suggested meetings between IFB leaders and legislators from Illinois will be “of the essence” as Senate and House votes approach. “There will continue to be
some refinement to (ARC) in the proposals that are being debated,” he said. “As we get closer to the floor debate, I think we’ll get a pretty good handle on what the final product will be.”
ALL SMILES DOWN ON THE FARM
Kadence Brownlee of Hamilton didn’t let the fact that he is missing his two front teeth deter him from enjoying the draft horse team at the Hancock County Farm Bureau’s recent “Down on the Farm” event. In background is Larry Vance of Carthage, who drove the team owned by Wayne Fecht, also of Carthage. See the story on page 12. (Photo by Sara Brockman)
Periodicals: Time Valued
Ag-related bills heading to the governor BY KAY SHIPMAN FarmWeek
With an eye on Thursday’s scheduled adjournment, state lawmakers increased the pace of legislative work last week. Illinois Farm Bureau successfully secured passage of one of its legislative priorities, addressing misuse of slowmoving-vehicle (SMV) emblems. The Senate passed HB 4598, sponsored by Rep. Pat Verschoore (D-Milan) and Sen. David Koehler (D-Peoria). The bill now returns to the House
for concurrence. The legislation would increase the current penalty from $25 to $75 for improper usage of the emblems and expand the definition of what is illegal beyond use in a road right-of-way. Under the bill, an SMV emblem may be used only on an animal-drawn vehicle, a farm tractor, an implement of husbandry, or certain special mobile equipment. THE SENATE also passed and forwarded to Gov. Pat Quinn HB 5539, which pro-
FarmWeek on the web: FarmWeekNow.com
poses several changes to the Illinois Fertilizer Act. The bill was sponsored by Sen. Michael Frerichs (D-Champaign) and Rep. Lisa Dugan (D-Bradley). IFB supported the measure. The legislation creates the Nutrient Research and Education Council, a new private entity made up of grower and fertilizer industry representatives that will manage nutrient research, education, and water quality efforts, said Jean Payne, president of the Illinois Fertilizer and Chemical Association (IFCA).
“This legislation will ensure that agriculture’s strategy to reduce field nutrient losses and improve crop yields through the ‘Keep it for the Crop’ program has a sustainable future,” Payne said. If the governor signs HB 5539, money from fertilizer licensing, registration, and inspection fees will go directly to the Illinois Department of Agriculture for fertilizer quality and safety programs. A separate portion will be designated for the Nutrient Research See Ag bills, page 3
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, May 28, 2012
Quick Takes MORE CME CHANGES — Farmers who thought the crop markets were skittish before or after the release of USDA reports in the past could see a new level of volatility in the near future. CME Group last week announced it will expand floor trading hours at the Chicago Board of Trade during major USDA crop reports, pending certification from the Commodity Futures Trading Commission. The expanded trading hours for USDA reports are planned to begin June 12 with the release of the crop production and world ag supply and demand estimates. USDA chief economist Joe Glauber last week announced USDA is reviewing release times for several of its major statistical reports due to recent changes in market hours. BIODIESEL BUZZ — More than 120 biodiesel industry leaders swarmed the Hill last week asking Congress to extend an expired biodiesel tax credit and urging the administration to quickly clear EPA proposals to expand mandated biodiesel volumes in 2013 under the Renewable Fuel Standard (RFS2). “Washington’s failure to act on these two issues has effectively halted the momentum our industry built last year in producing a record of nearly 1.1 billion gallons,” said Anne Steckel, National Biodiesel Board (NBB) vice president for federal affairs. “It is locking up millions of dollars in investments that could be creating jobs, purchasing equipment and feedstock, and driving economic growth.” Congress allowed the biodiesel incentive to expire Dec. 31, and NBB hailed President Obama’s support for energy tax credit extensions in an Iowa speech last week. But biodiesel advocates have asked the administration to OK plans to increase RFS2 biodiesel volume requirements to 1.28 billion gallons in 2013, up from 1 billion gallons this year. “(That decision) has been caught up in a bureaucratic delay for nearly a year, without any explanation or justification,” Steckel said. SOUNDING OUT FOR SCIENCE — The American Farm Bureau Federation (AFBF) and the Biotechnology Industry Organization (BIO) are concerned that a Senate amendment, if approved, would undermine the regulatory process and prevent the Food and Drug Administration (FDA) from fulfilling its mandate to review products based on “sound science.” The Senate is moving forward with consideration of the Food and Drug Administration Safety and Innovation Act, and Sen. Lisa Murkowski (R-Alaska) has introduced an amendment that would prevent FDA from making a final determination on genetically enhanced salmon. “Political interference in the FDA approval process amounts to Congress injecting market competition issues and factional interests into what has always been a sciencebased process,” AFBF and BIO wrote in a letter to Senate leaders. “Once this threshold is crossed, a precedent will be set and the regulatory system will become less credible to U.S. consumers and unpredictable to companies investing in innovative technologies, as well as to their customers.”
(ISSN0197-6680) Vol. 40 No. 22
May 28, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org)
ENERGY
Illinois breakthrough unlocks ethanol potential BY MARTIN ROSS FarmWeek
As the biofuels industry awaits the next big development in biomass ethanol, John Caupert hails a new “breakthrough” in cost-effectively producing cellulosic ethanol from an unexpected source. The corn kernel. Last week, Caupert, head of Edwardsville’s Corn-to-Ethanol Research Center, announced successful conversion of the nonstarch portion of the kernel into ethanol. That represents “the culmination of four years’ activity” and “the next step in the evolution of biofuels,” he said. Ethanol critics have challenged industry ability to rapidly ramp up commercial fuel production from such sources as switchgrass, miscanthus, or even corn stover, despite projected cellulosic capacity coming online in 2013-14. While existing crop residues are seen by many as the next logical step in cellulosic scale-up, using more of the kernel to improve ethanol yields offers current biofuels plants another
Tuesday: • Ag Weather with Chesapeake Meteorology • Bob Dinneen, president and CEO, Renewable Fuels Association • Heather Combs, IAA Foundation Wednesday: • Tim Schweizer, IDNR • Ron Marshel, Fayette County Farm Bureau manager • Ken Cripe, Fayette County Farm Bureau president • Dr. Chris Wiant, president of Water, Quality and Health Council Thursday: • Diane Handley, IFB’s affiliate association manager • David Blume, president of Blume Distillation • Lance Tarachione, DeKalb agronomist Friday: • Sara Wyant, AgriPulse • Mike Doherty, IFB economist • Story time with Alan Jarand
Steve Kelly, left, president of One Earth Energy ethanol plant in Gibson City, explains the general principles and processes involved in the production of ethanol and distillers dried grains (DDGS) during a tour of the facility to officials from the Japan Ministry of Agriculture, Forestry, and Fisheries. They are left to right, Satoshi Yamada, Daisuke Kojo, and Gen Furuhashi. Japan, the No. 1 market for U.S. corn, currently is going through an approval process for low-oil DDGS. One Earth Energy began operations in 2009 and produces 100 million gallons of ethanol each year. (Photo by Becky Finfrock, Illinois Corn Growers Association/Marketing Board)
leg up in cost efficiencies and a testing ground for advanced biomass processing. “The message this sends is that there is still so much work that can be done with the feedstock corn,” Caupert said in an RFD Radio-FarmWeek interview. “This should be exciting for all 211 existing (U.S.) corn ethanol plants. “We are proving theoretical ethanol yield increases of about 5 percent through this conversion process. What makes this even that much more potentially attractive to the commercial marketplace is that every technology used in this particular research project is a ‘bolt-on’ technology, market-ready today.” Caupert also is hopeful improvements in corn-based ethanol yields can help “defuse” continued consumer-media controversy over alleged “depletion” of food/feed crops for energy production. Further, federal biofuels mandates are based on the
greenhouse gas “footprint” of corn/ethanol production and use, and a 5 percent yield boost from corn improves that prospective footprint. “We used everything that already exists at the ethanol plant, without incorporating additional (technical) resources or energy resources,” Caupert related. The center’s project received support from USDA and more than $100,000 in matching funding from a Florida company that made it possible to leverage an Illinois Department of Commerce research/development grant. Resulting findings are “all public knowledge,” Caupert noted. That means a variety of ethanol plants eventually could lower costs, improve profits, and offer lower ethanol pump prices for beleaguered motorists. “At the end of the day, the consumer, the taxpayer, owns this technology,” Caupert maintained.
GETTING A RECORD EARLY START
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Darren and Jesse Drew Friday were harvesting a 20-acre field of wheat east of Benton. The yield was in the 50- to 55-bushel range (considered somewhat of a disappointment) and the moisture was at 14 percent. More combines are expected to get going this week. This is the county’s earliest wheat harvest on record by at least two weeks. (Photo courtesy of Franklin County Farm Bureau)
Page 3 Monday, May 28, 2012 FarmWeek
STATE
IFB backs Quinn’s call for Medicaid, pension reforms BY KAY SHIPMAN
Illinois Farm Bureau last week announced support of Gov. Pat Quinn’s call for reforms of Medicaid and state pension systems before Thursday’s scheduled adjournment of the General Assembly. Starting Friday, a threefifths super majority in the legislature would be required to pass the budget and reforms. “The ever-increasing cost of providing necessary care to Illinois residents through Medicaid needs to be addressed,” said IFB President Philip Nelson. “We credit the governor for putting forward a plan to do that.” “I sincerely thank the Illi-
nois Farm Bureau,” Quinn said during a Statehouse press conference. “We are grateful to farmers and farm families across Illinois. They’re the heart and soul of our state.” Nelson also credited Gov. Pat Quinn Quinn for urging the General Assembly to address unfunded state pension liabilities. “It is not easy for someone to take on the pension system, and we commend the governor for doing that,” Nelson said. “If the state’s
pension liability is not addressed, it will draw the state’s budget into a bigger hole. “This will lead to a continuation of a business climate in Illinois that is not attractive for businesses to locate or expand here.” Nelson also recognized the work of legislative leaders in developing solutions for reforming Medicaid and pensions. Quinn noted about 40 percent of the state’s economy is tied to agriculture and related industries. “Our No. 1 business in Illinois, our No. 1 vocation, is agriculture and all the things
that flow from agriculture,” Quinn said. Currently, the state spends 39 percent of its general revenue funds on Medicaid and the state pension systems. Illinois is expected to have nearly $2 billion in unpaid Medicaid bills by June 30, the end of the fiscal year. The total is due in part to $1.9 billion in deferred bills
from the previous fiscal year and to increased enrollment for Medicaid during the recession. Illinois will spend $5.2 billion this fiscal year on the state pension system. Overall, the state has an estimated $83 billion of unfunded pension liability, due to years of inadequate pension contributions and increased benefit costs.
Lawmakers negotiate Medicaid changes State legislators had passed some Medicaid system changes and continued to debate others at FarmWeek presstime. Lawmakers were expected to work through the weekend given the remaining major issues of state pension reforms and the state budget. The General Assembly is scheduled to adjourn Thursday.
State’s ‘red ink,’ IDOA manpower needs raise concerns
The future health of the Illinois Department of Agriculture (IDOA) along with the rest of state government hinges on reforming Medicaid and the state pension system, the acting Illinois agriculture director said last week. “We need to stop the red ink,” Bob Flider told Illinois Farm Bureau board members. Flider thanked IFB for supporting Gov. Pat Quinn’s call for reforming state pension and Medicaid systems. “Thank you for stepping forward in a timely manner,” Flider said. As the state has tackled budget deficits and funding problems, IDOA has seen its employees reduced and general revenue funding
‘We need to stop the red ink.’ — Bob Flider Acting Illinois director of agriculture
cut by more than 40 percent in the last five years. “IDOA has taken a huge hit over the years,” Flider said. Once more than 800 people worked at IDOA, now there are 375. In the past 10 years, every bureau has reduced staff by 40 percent or more, he said.
Asked about IDOA’s manpower to monitor grain warehouses and elevators, Flider said he believed there are good people who are working hard given a 47 percent staff reduction in 10 years. “I have concerns that we’re stretched thin,” Flider said. Flider added he also is concerned
Syngenta to pay $105 million to settle atrazine lawsuit Syngenta, the principal manufacturer of atrazine, has agreed to offer $105 million to settle an 8year-old lawFarmWeekNow.com Listen to an interview with the suit with sevIllinois Fertilizer and Chemical eral Illinois Association’s Jean Payne about community t h e a t r a z i n e s e t t l e m e n t a t water supplies. FarmWeekNow.com. Last week, the Swiss company indicated it was awaiting a decision by the U.S. District Court for the Southern District of Illinois on approval of the settlement. Under the agreement, Syngenta “denies
any liability,” and the entities that brought the lawsuit acknowledge “they have not commissioned and are not aware of any new scientific studies related to atrazine.” Syngenta stated it and attorneys for several community water systems settled the lawsuit “to end the business uncertainty” and further legal expense. Water utilities that detected any amount of atrazine in raw or treated water previously or within 90 days of the settlement’s approval are entitled along with the plaintiffs’ lawyers to payments from the $105-million fund. Atrazine is used in more than 60 countries around the world, according to Syngenta.
some employees may retire early to avoid changes if the General Assembly changes the state employee pension system. However, he didn’t have any estimates on how many employees may retire or the bureaus and/or programs that may be impacted. In the meantime, IDOA is “pushing hard to make sure E15 (15 percent ethanol blends) gets to market. But the oil industry is putting up roadblocks,” Flider said. In Illinois, the state fire marshal, the Illinois Environmental Protection Agency, and IDOA have a role in getting E15 to market, Flider noted, adding, “We want to see it get there.” — Kay Shipman
State’s exports up 17 percent The state’s exports increased by more than 17 percent in the first quarter of 2012, according to the governor’s staff. Gov. Pat Quinn wants to double the state’s exports by 2014. In the first quarter, Illinois exports totaled $17.2 billion, up from $14.7 billion for the same period a year ago. This was the state’s highest quarterly export figure in more than a decade. Much of the hike was attributed to increased sales of industrial machinery, petrole-
um and coal products, autos and auto parts, and chemicals. Illinois continues to rank first in the Midwest in exports and foreign direct investment and was the sixth largest U.S. exporting state in 2011. Earlier this year, the governor established the Illinois Export Advisory Council. The council, whose members include Illinois Farm Bureau Vice President Rich Guebert Jr., is developing recommendations on state and federal policies and programs related to trade.
The number of farms that will be required to have a permit is expected to be limited. LEGISLATION implementing reorganization of the Illinois Council on Food and Agricultural Research (C-FAR) passed in the Senate. HB 4447 would put into place reorganization recommendations made by agricultural and commodity groups several years ago. IFB supports the bill sponsored by
Senator Frerichs and Rep. David Reis (R-Willow Hill). THE SENATE passed HB 5540 that would name the Illinois Department of Agriculture administration building after John Block, former U.S. agriculture secretary and state agriculture director. IFB supports the legislation sponsored by Rep. Don Moffitt (RGilson) and Sen. Darin LaHood (R-Dunlap).
Ag bills Continued from page 1 and Education Council. “This is an investment in agriculture and in water quality,” Payne said. THE SENATE passed HB 5642 that authorizes annual permit fees for concentrated animal feeding operations (CAFOs). It will be sent to the governor. The bill was sponsored by Senator Frerichs and Rep. Michael Tryon (R-Crystal Lake).
Under HB 5642, the permit fees will vary depending on the size of the operation. CAFOs with 1,000 or more animal units will pay a $750 fee; those with between 300 and 999 animal units, $350; and those with fewer than 300 animal units, $150. IFB, Illinois Pork Producers Association, Illinois Beef Association, and Illinois Milk Producers Association negoti-
ated with the Illinois Environmental Protection Agency to clarify that a permit would be required only if a livestock farm is discharging “to a water of the United States.” Farmers will not be required to have a National Pollutant Discharge Elimination System (NPDES) permit or pay a fee if there is no such discharge or if they correct a situation that may have caused a discharge.
FarmWeek Page 4 Monday, May 28, 2012
government
Economist: ARC appears ‘pretty fair’ for Illinois BY MARTIN ROSS FarmWeek
A new, Senate-proposed revenue safety net would have “roughly the same impact” for all Illinois farmers, according to University of Illinois economist Gary Schnitkey. Schnitkey offered analysis of the proposed new Agricultural Risk Coverage (ARC) during a House Ag Committee hearing on 2012 farm bill commodity programs (see accompanying story). The Senate Ag Committee argues ARC would help growers nationwide tailor protection, “meaning better protection against real risks beyond a farmer’s control.” ARC participants could use either their own farm yield or county yield as a basis for revenue protection. According to Congressional Budget Office numbers, ARC payments would be roughly proportional to crop value, Schnitkey noted. That differs significantly from the way payments currently are made based on base acres and direct payment rates, “and whether that is equitable or not is something for you all to
decide,” he testified. Because of its flexibility, he believes ARC — when it pays out — would be equitable for farmers across Illinois. “From what I’ve looked at, ARC is a pretty fair program for Illinois,” Schnitkey told FarmWeek. “It treats different parts of the state fairly evenly, and it does fill in in situations where crop insurance wouldn’t make payments. “More farms in Southern Illinois likely would find the farm yield option more attractive. I would expect to see more farms in Southern Illinois using the farm option, compared with Northern or Central Illinois.” ARC is a so-called “shallow loss” program, designed to protect against significant but non-catastrophic losses and, in Schnitkey’s view, to serve as a complement to crop insurance. An alternative “deep loss” program, designed to cover more catastrophic-level losses, “would pay very seldom in Illinois,” he said. Illinois would have seen deep loss payouts only a few times over the past 20-30 years, he concluded. ARC would help growers suffering a multi-year price decline (see the
$3.50/$4 scenarios in the accompanying chart), where a deep loss program “wouldn’t do anything in those types of situations,” Schnitkey maintained. He sees 2012 fall corn prices in the high $4/low $5 range, given a “normal crop.” Under a normal production scenario, Schnitkey said, 2013 prices could hover around $4.50 — well above ARC’s hypothetical payment trigger point. “You have to get down to roughly $4 before ‘county ARC’ would pay,” Schnitkey advised. “It would be the same for ‘farm ARC,’ as well. ARC will react to the market: If market forces cause corn prices to come down, there would be payments, but they would transition out over time.” Given current budget realities, that appears equitable to the Illinois Corn Growers Association (ICGA), which solicited Schnitkey’s ARC analysis. ICGA reiterated support for a program “that does not guarantee producer profitability, that operates within the constraints of the federal budget, that works with crop insurance programs, and that encourages a market-driven agricultural industry.”
This chart offers various corn price scenarios for potential Champaign County payouts under the proposed Agricultural Risk Coverage (ARC) program. Calculations include five-month prices that would be used in calculating ARC payments (and presumably, prices farmers would receive), crop revenue reflecting yields time price, per-bushel costs equaling $514 in non-land costs plus a $253-per acre Champaign County cash rent, and net returns representing revenues plus ARC payments minus projected costs. (Courtesy of University of Illinois Farmdoc.com and Illinois Corn Growers Association)
Ag groups push funding for export ‘partnerships’ Major commodity groups offer what they deem several billion reasons for continued farm bill funding of two strategic export support programs The Senate Ag Committee’s farm bill draft would extend current funding levels for both Market Access Program (MAP) and Foreign Market Development Cooperator Program (FMD) for five years. But in a letter last week, the U.S. Meat Export Federation (USMEF) acknowledged “it may be tempting for some in Washington to cut funding for these programs.” MAP helps U.S. farmers, exporters, companies, and nonprofit trade groups finance activities aimed at marketing and pro-
moting commodities and products abroad. MAP participants contribute a minimum 10-percent match for federal funds (or a dollar-for-dollar match for specifically branded promotions). FMD uses USDA funds to create, expand, and maintain long-term ag export markets, through cost-share partnerships between USDA and U.S. producer-processor “cooperators.” USMEF called MAP and FMD “successful public-private partnerships” targeting small businesses and ag co-ops. “They’re absolutely important to continued development of overseas markets,” American Soybean Association spokesman Patrick Delaney told FarmWeek.
“A lot of our members have worked hand-in-hand with those programs over the years and have as a direct result seen overseas markets open up to them. “And they go hand-in-hand with things like expanding trade agreements, like (the prospective multi-nation) Trans-Pacific Partnership.” USDA’s Foreign Agricultural Service (FAS) last week announced changes to MAP regulations aimed at clarifying, streamlining, and, ideally, improving cost efficiencies in program requirements. Those include expanded fraud prevention efforts and simplification of the MAP application process. USMEF offers these points in
Export programs beneficial for Midwest shipper Global soy demand may be on the rise, but for companies such as The DeLong Co. Inc., identifying the right customer for the right product is crucial to tapping that demand. DeLong, a Wisconsin-based elevator/supplier/exporter with containerized “trans-shipping” facilities at Joliet, has made use of the federally funded Market Access Program (MAP) and Foreign Market Development Cooperator Program (FMD). With the help of those programs, DeLong has worked closely with the United States Soybean Export Council (USSEC), which helps promote soy products at international trade shows and helps connect marketers with prospective global customers. “Being a small- to medium-sized exporter, we don’t have the luxury of having offices or contacts overseas,” DeLong export sales manager Brandon Bickham told FarmWeek. “In the initial stages of our export business, when we were really starting to grow, we made
our contacts, found all of our new customers through the USSEC/ASAIM (American Soybean Association International Marketing) offices overseas. “It would have been a very difficult proposition to seek out good customers we could make good long-term relationships with without having the introduction we got from both the U.S. Grains Council on the corn and DDGS (distillers dried grains) side and the U.S. Soybean Export Council on the soybean/soybean meal side,” he said. Federal export promotion funding has aided greatly in “taking a lot of the search and discovery” out of identifying foreign tofu or soy “milk” producers or other buyers for specialty beans, Bickham said. He credited MAP/FMD in particular with helping DeLong’s trade in non-GMO soybeans. DeLong received Illinois’ Agriculture Exporter of the Year in 2011, following nomination by Gov. Pat Quinn. — Martin Ross
support of MAP-FMD funding: • The ag sector posted trade surpluses of $29.7 billion in fiscal 2010 and $42.7 billion in fiscal 2011. Overall ag exports are projected at $131 billion for the current fiscal year, reportedly supporting 1.1 million-plus U.S. jobs. • Since MAP was created in 1985, U.S. ag exports have risen more than 400 percent. USDA estimates every $1 of MAP
spending returns $35. • A USDA-commissioned study of MAP and FMD shows that from 2002 to 2009, export gains improved the average annual level of U.S. farm cash receipts by $4.4 billion. • U.S. domestic farm support payments have fallen by about $54 million annually due to higher prices resulting from increased demand abroad. — Martin Ross
USDA expands credit options USDA last week announced it made substantial gains in expanding credit opportunities for farmers around the country. Since 2008, the number of loans to beginning farmers climbed from 11,000 to 15,000. Meanwhile, the total value of loans in persistent-poverty counties since 2010 has increased 60 percent. “Over the past three years, we have expanded farm and operating loans to Americans from all backgrounds to help raise a new crop of producers across the country,” said Ag Secretary Tom Vilsack. USDA currently is seeking comments on a new microloan program designed to help small and family operations progress through start-up years until they eventually build enough capacity and equity to graduate to commercial credit. Small farmers often rely on credit cards or personal loans, which carry high interest rates and have less-flexible payment schedules, according to USDA. The new microloan program, which would be for loans of less than $35,000, would offer more efficient processing time of loans, add flexibility to some of the eligibility requirements, and reduce the application requirements. USDA farm loans can be used to purchase land, livestock, equipment, feed, seed, and supplies or to construct buildings or make farm improvements. Farmers have until July 23 to submit comments about changes to the Operating Loan Program, which includes addition of the micro-loan proposal. The rule can be viewed at the website {www.fsa.usda.gov}. Comments may be submitted online at {www.regulations.gov} or by mail to: Director, Loan Making Division, FSA, USDA, 1400 Independence Ave, SW, Stop 0522, Washington, DC 20250-0522.
Page 5 Monday, May 28, 2012 FarmWeek
production
Dryness concerns intensify as temps heat up BY DANIEL GRANT FarmWeek
The good news for many farmers so far this season is much of the crop was planted in a timely manner. Corn planting in the state as of the first of last week was 99 percent complete, well ahead of the five-year average of 79 percent, while 80 percent of soybeans were in the ground compared to the average of just 37 percent. “Many farmers took advantage of (warm and dry) conditions to continue planting, spraying crops, and cutting hay,” the National Agricultural Statistics Service Illinois field office staff noted last week in its weekly crop progress update. The bad news, though, is a
lack of rainfall is stressing some of the early-planted crops and making it difficult for freshly planted seeds to germinate. “It’s like a desert here,” said Lonnie Lewis, president of the Pope-Hardin Farm Bureau who farms on both sides of the Ohio River. “It looks like July.” Portions of Northern, Central, and much of Southern Illinois last week were rated “abnormally” dry by the U.S. Drought Monitor. There also were pockets in deep Southern Illinois, Lewis’ farm included, in moderate or severe drought, according to the monitor. And the situation was expected to worsen over the weekend as some of the hottest temperatures so far this year (mid- to high 90s and
Hager: Dust may contribute to herbicide control issues BY KAY SHIPMAN FarmWeek
Farmers need to be aware that dusty field conditions may reduce the effectiveness of postemergence herbicides, especially glyphosate, according to Aaron Hager, University of Illinois weed scientist. “In some parts of the state it is dusty. Be aware this might happen. This could result in reduced weed control,” Hager told FarmWeek. Early planting and early emergence coinciding with dry soils have resulted in large amounts of dust in the air and settling on weed leaves when farmers are applying postemergence herbicides. “Glyphosate is the big one ... it tightly absorbs soil particles,” Hager explained. Dust-coated weed leaf surfaces may reduce the herbicide’s effectiveness because some of the chemical may be absorbed more by dust than the weeds. Hager also noted herbicides require time to penetrate the waxy surfaces of weed leaves that may be covered with dust. Unfortunately, there are no good answers to the problem other than a rain. Given the height of weeds and the timing of herbicide applications, weed scientists know farmers need to implement management plans, Hager said. He encouraged farmers to scout fields that were sprayed under dusty conditions and consider follow-up treatment if needed.
possibly approaching 100 degrees in some areas) were projected to envelope the state. “We haven’t had enough rain to get to the seed depth since we planted in early April,” said Lewis, who noted just a few tenths of rain have fallen on his farm since April 1. “We planted no-till corn and the ground is so hard the roots can’t grow.” Meanwhile, many farmers in the drought-ravaged areas are delaying soybean planting until there is moisture to germinate the seeds. “A lot of guys haven’t planted beans for six weeks
because they’re waiting for some type of rain,” Lewis said. “I cut hay (Thursday) and got about 25 percent of what we had last year.” Crops in the majority of the state in the near term should be able to get by on topsoil or subsoil moisture, according to Emerson Nafziger, University of Illinois Extension crop systems specialist. Topsoil moisture statewide last week was rated 3 percent surplus, 64 percent adequate, and 33 percent short or very short. “There should be enough water to keep the crop grow-
Lethal exposure 2012: Working safely in the sun BY MARTIN ROSS FarmWeek
To many farmers, the feel of the sun on their face may be the best part of a day’s fieldwork. A few basic measures can help producers avoid discovering summer’s darker side. To promote sun safety, the National Council on Skin Cancer Prevention declared last Friday “Don’t Fry Day.” Skin cancer’s on the rise due to ultraviolet (UV) overexposure. The American Cancer Society this year projects 76,000-plus new cases of malignant melanoma, the most serious form. The Skin Cancer Foundation notes outdoor workers experience twice the level of non-melanoma cancers as those who work indoors. Lucinda Buescher, dermatology residency program director with Southern Illinois Healthcare, told FarmWeek on-farm UV exposure necessitates farmers “being diligent and routine about using sunprotective measures.”
“They can use equipment that’s covered when possible,” she said. “I know a lot of farmers who wear long sleeves throughout summer to protect their arms. But there are going
to be areas exposed daily and unfortunately during the middle of the day when they’ll probably be most productive.” Buescher believes the farmer’s morning routine should begin with application of sunscreen prior to field activity. The ideal sunscreen formulation is a “broad spectrum” SPF30 capable of reducing the ravages of both “burning” (UVB) rays and tanning (UVA) rays now linked to potential skin cancers. Tanning rays penetrate more deeply and cause more long-term damage to skin. While sunburn can lead to tis-
Nelson: Ag ‘protections’ merit careful consideration Illinois policymakers should carefully examine all implications and potential complications of “ag protection” laws, Illinois Farm Bureau President Philip Nelson suggests. Missouri’s state legislature has approved a measure that would make it illegal for employees of livestock operations to hang onto videos or photos they take of animal abuse. Under the new law, anyone in possession of such photos or video would have 24 hours to report alleged abuse to law enforcement. Missouri Farmers Care Coalition spokesman Dan Kleinsorge argues the law
ing well into June,” Nafziger said. “At some point, of course, we will need rain to keep the crop growing up to its potential.” The U of I noted the combination of early planting followed by dryness has resulted in some failures of corn root systems, which have produced “floppy corn” in parts of Northwestern and Western Illinois and southeastern Iowa. “The corn on the lighter soils is showing signs of stress as the moisture is getting away from the roots,” said Bernie Walsh, a FarmWeek Cropwatcher from Winnebago County.
would help prevent “an undercover investigator” for animal rights interests or others from “sitting on” and/or editing video “for maximum impact” on the Web, on TV, or in films. Instead, evidence of apparent animal care abuses should be immediately submitted to authorities “so that problem can be dealt with through the proper channels,” Kleinsorge said. He argued the Missouri measure is different from other so-called “ag-gag” bills passed in Iowa and Utah, which attempt to block suspect job applicants from misrepresenting themselves to gain access to farms. In an RFD-FarmWeek interview
last week, Nelson cited mixed feelings about such approaches to protecting operations. He said he is interested in seeing how the Missouri law “plays out” before judging whether Illinois should consider such an action. “I don’t know that this would do any good (for Illinois), given what we already have on the books right now,” he said. “I have mixed emotions about putting another layer of that type of protection on top of things where you would hope common sense would prevail at the end of the day.” — Martin Ross
sue mutations that result in cancers, the subtle aging effects of UVA rays can mask “pre-malignant” or lethal growths. Most sunscreens begin to lose effectiveness after two hours, and Buescher recommends re-application at mid-morning or lunch. She noted some spray sunscreens provide the same protection as creams or lotions with a cleaner skin feel. She urged use of sunglasses with UV protection to prevent melanomas that can develop in the eye. Protecting the neck and ears poses a challenge: Buescher recommended a broad-brimmed hat be worn. She recognized the relationship between farmers and seed caps, but stressed cancers on the ears and scalp can be tough to detect or treat in a timely manner. A bandanna or “doo-rag” over head and ears can provide some protection. Even then, selection is key. A white T-shirt or rag can increase light reflectivity and risks to surrounding skin. Heat exhaustion also is a potential field hazard — Buescher cited increased availability of lighter-weight UVprotective shirts, possibly on the Internet. Finally, farmers are not immune to skin cancer risks inside a tractor or combine cab. Window glass helps block UVB rays, but does little to prevent skin damage from UVA rays, she said. “It just gives people a false sense of security,” Buescher warned, advising farmers to use the same protective wear inside and outside of the cab.
FarmWeek Page 6 Monday, May 28, 2012
CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Hot, dry, windy, dusty conditions with no rain this past week. This makes five full weeks now since we had any more than 1 to 2 tenths of an inch of rain. Most of the corn still looks pretty good considering the lack of rain with most of our corn in the V-2 to V-4 stage. The corn on the lighter soils is showing signs of stress as the moisture is getting away from the roots. The soybeans also are pretty variable, with some fields looking pretty good, if they were planted deep enough to be in the moisture. There are lots of beans still lying in dry dirt, waiting for some rain. We started our center pivot irrigator last week — by far the earliest we have we have ever had to use it. Pete Tekampe, Grayslake, Lake County: What a difference two weeks makes. Two weeks ago it was super wet, and now it is extremely dry. All the showers are either going north to Wisconsin or south to wash the streets of Chicago. Corn needs a rain but still looks OK. Beans are about 95 percent planted and many are just emerging. I think it is too late for any water to do any good for the winter wheat. Some good hay has been baled with this great drying weather. Showers are forecast for three of the next seven days. I hope we get one. Leroy Getz, Savanna, Carroll County: Another week with no rain. A storm front passed on Thursday, but it is still dry. Firstcrop hay has been made with excellent quality. Corn and beans are all planted. They are growing and looking good but need moisture. Post spraying will start when the weeds decide to grow. Potatoes are in full blossom. School is out, so the kids will be around to help. This summer think rain. Growing degree units, 548. Ryan Frieders, Waterman, DeKalb County: The past week we were busy spraying our corn with post herbicide and applying nitrogen. The winds have been blowing for 24 hours so badly that dust storms caused major accidents and power outages in the area. It is unknown what the toll will be on the growing crops. The topsoil also has become very dry from the high winds and heat. Larry Hummel, Dixon, Lee County: A shower sure would be nice, but I guess we will have to wait a little longer. Thursday 90 degree temperatures and 40 mph winds were rough on the crops, especially any that already had some issues. I don’t think I can remember a time when corn this small rolled up like that. The corn around here is in the V-3 to V-E stage. I have one field of no-till soybeans that was rained on right after planting that has emergence problems. It has pretty much run out of time for rain to soften up the surface to get a few more beans through. Ken Reinhardt, Seaton, Mercer County: Thursday’s 90plus degree temperature with 40 mph winds were tough on crops and human spirits. Dust clouds were evident at times. There are rain chances coming, but show little potential for meaningful amounts. Soybean stands will be spotty in many fields without a good, soaking rain. Early-planted corn continues to look good. Ron Moore, Roseville, Warren County: We did not get any rain last week. We are definitely dry now and in need of a rain. The heat and wind last week really caused the crop conditions to deteriorate rapidly. I plan on mowing some hay, so that may change the weather patterns. Most of the post-spraying on corn has been done now. It has been a challenge to get that job done with 30 to 40 mph winds. More farmers in this area are sidedressing nitrogen on corn this year. That opportunity should end soon as the corn is now getting taller. Surprisingly, there are no reports of any insects in this year’s corn and bean crops. With the mild winter and early warm planting weather that is one bright spot.
Jacob Streitmatter, Princeville, Peoria County: Almost all of the corn and soybeans are planted for the first time. There has been a lot of replant of corn in the area. Some of it is due to flooding and some due to pythium, a seedling disease that kills off the roots. This has thinned out a lot of corn already, and we are still finding more cases. Tim Green, Wyoming, Stark County: Pretty pleasant week, and a lot of corn was sprayed. People are trying to catch up on their Roundup applications. Crops are growing pretty well. The hot weather seemed to make things pop. You can start to see some effects of the dry weather in some fields. A nice half inch or 0.75-of-an-inch rain would be greatly appreciated. Beans that were planted a week ago are starting to come up. So far they look OK. Mark Kerber, Chatsworth, Livingston County: It was a dry and dusty week for most of us. A good rain event missed most of the county except for the northern portions. Our yards are starting to dry out as are the thinner soils. The evaporation rates go up as summer approaches. There are concerns of dryness as there isn’t much subsoil moisture. Soybean planting is complete with a small amount of replanting. Now we will see if we planted the beans in moisture or dry dirt. Corn is growing but could use a drink. Nitrogen is being applied with concerns of leaching out with the hot, dry winds. Road and waterway mowing is starting along with baling some of these grasses. Hay also is getting baled. Next operation will be corn spraying with glyphosate. Markets feel that rain will be coming. Ron Haase, Gilman, Iroquois County: We finished planting corn on May 22 and we are now sidedressing nitrogen on our first-planted cornfields. Other farmers were finishing up their planting of soybeans or their replanting of corn acres that were drowned out. On Sunday, May 20, a thunderstorm passed through in the evening. We did not receive any rain, but left the field because all the lightning and the threat of rain. Others received from 1 to 4 inches of rain and had water standing in the fields again. We are dry here. I have mowed my lawn only once in the last four weeks. Corn in the area is anywhere from emergence up to the V-5 growth stage. The corn planted two weeks ago is taking six days to emerge. Soybeans are taking five to six days to emerge. The local closing bids for May 24 were: nearby corn, $6.08; new-crop corn, $4.82; fall 2013 corn, $4.80; nearby soybeans, $13.69; and new-crop soybeans, $12.43. One major project on our farm was completed on Wednesday after almost four weeks of work. We had our 1889 horse barn repaired and covered with metal siding and roofing.
Tom Ritter, Blue Mound, Macon County: Rain fell in southern Macon County the weekend before last. A few places got 0.3 or 0.4 of an inch but our vicinity received only 0.1 of an inch or less. The rain was very much needed, especially with the 90-degree days leading up to Memorial Day weekend with high winds sapping the moisture. Soybean planting has been completed. Spraying has been halted by the high winds. Farmers are fairly well caught up and even were resorting to getting roads mowed before Memorial Day weekend. At this point, the crops are looking as good as they ever have, but I am also pessimistic that we are not headed for a great crop due to the lack of moisture and especially subsoil moisture. The prediction is for a hot, dry summer.
Brian Schaumburg, Chenoa, McLean County: Even cardcarrying pessimists would have to admit that this crop is off to an excellent start. With GDUs at 527 since April 15, corn growth stage is at V-3 to V-7 and soybeans are at V-E to V-2. Rainfall has been short but stands are even and deeply rooted. Insect problems are few and far between. Postspraying is going quickly. Corn, $6.07; fall corn, $4.93; soybeans, $13.61; fall soybeans, $12.41; wheat, $6.30. Steve Ayers, Champaign, Champaign County: Sunday’s (May 20) rain varied from onetenth at Rising to 4 inches in the Royal area. Looks like we may be into a rainy spell from June 3 to 9. Soybeans are 84 percent planted with 40 percent emerged. Corn is growing well but we are seeing some yellowing due to herbicide carryover. The pest of the week is the 13-lined ground squirrel that munches on corn kernels along roadsides and waterways. Wilfred Dittmer, Quincy, Adams County: The word is still dry. Our last rainfall came on May 4 and that only gives May 1.7 inches of rain. Many beans that were planted a couple of weeks ago desperately need a little help from Mother Nature. Corn is looking good and off to an excellent start. Wheat fields are beginning to turn, and it’s still May. A lot of hay is being cut. Carrie Winkelmann, Tallula, Menard County: Well, my request for rain was not answered. We did not get any rain last week although spots around us got as much as 3 inches and some places got hail. We could still use some moisture. I never thought the soybeans would come up in dry soil, but they have although they would look a lot better if we could get a rain on them. Corn is knee high. Wheat is turning. Scouting alfalfa for leaf hoppers was on the agenda last Friday. Todd Easton, Charleston, Coles County: Yet another predominantly dry week in our area has put the corn crop mostly in the V-4 to V-6 stage on defense mode, causing leaf rolling and halted growth. Rains forecast for May 20 left only a trace to 0.25 of an inch of rain, giving the crops little relief. Soybeans mostly are just emerging to V-1 with the driest areas having some emergence issues in spots. Field operations are winding down for now as spraying and sidedress applications, which were more numerous this spring than ever before, are completed. Next up will be soybean spraying if they get some moisture and decide to grow enough. Keep those fingers crossed! Jimmy Ayers, New City, Sangamon County: On Sunday (May 20), we received 0.4 of an inch of rain. The rain around us was anywhere from nothing to 2.1 inches north of Springfield. There were high winds and hail and pretty good damage up through there. Corn is V2 to V5. A lot of it is pretty green. A lot of beans have emerged. We finished planting our corn and beans, and I replanted a little bit of corn that didn’t come up. People are mowing and baling hay. David Schaal, St. Peter, Fayette County: Rains across the county on Sunday, May 20, totaled from 0.1 of an inch up to 4 inches. We received 4.5 inches in southern Fayette County. Rotary hoes are running on soybean fields that received more rainfall. Corn for the most part is growing and looking good. Producers are doing some sidedressing of anhydrous or 28 percent nitrogen on the earlier-planted corn to try to give it a boost. With the hot, windy weather here last week, the wheat is making a big change. I assume there will be a lot of wheat being cut in the first week of June.
Page 7 Monday, May 28, 2012 FarmWeek
CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: One inch of rain total for May so far in our part of the county, but some in the county had 1 to 2.5 inches last week. Some had none. Sidedressing of corn has been completed and herbicides have mostly all been applied to the corn. Wheat is coming on fast and harvesting may start by the second week of June. I’m sure a lot will be double-cropped. Crop futures trading hours have been extended and so have losses on crop prices. Short crops still have a long tail. So even though we think the crop is short, the futures are trading lower. According to the government, we are headed for a record crop. We better start getting some moisture, then, because as far as I can tell, most everyone is pretty short of it. Prices for May 24: direct corn, $6.35; elevator cash corn, $6.14; last half August 2012, $5.18; fall 2012 corn, $4.94; new wheat, $6.45; direct beans, $13.99; cash beans, $13.72; fall beans, $12.46. Dave Hankammer, Millstadt, St. Clair County: Lately I’ve become confused. After witnessing an occasional dusty whirlwind swirling through the local fields, then an online news service starts using the image of a cactus to indicate the temperature highs in the weather forecast, I’ve been wondering if this is Southern Illinois or the fictional Old West. This past week was another dry one for many in the area. I’ve learned some farmers have been without rain since late April. On May 20, some areas received up to 0.5 of an inch, while others received little to none. Despite the lack of rainfall, the corn crop and earlyplanted soybeans are doing well. However, 90-degree-plus temperatures will start stressing the crops. Most farmers are done planting first-crop soybeans, although there are some who have decided to delay planting some of their fields due to the lack of soil moisture and rainfall. They have decided to wait for rain to ensure a uniform emergence of the crop. Local grain bids are: corn, $5.89; soybeans, $13.72; and wheat, $6.29.
Dan Meinhart, Montrose, Jasper County: Our area had little or no precipitation last week. An isolated area west of us had heavy rain Sunday afternoon and evening (May 20). The first part of the week was cool with a warming trend toward the end of the week. Fieldwork continued with wrapping up planting, sidedressing corn, and applying post chemicals. Wheat harvest is approaching quickly. There is a slight chance of showers early this week. A good shower would be most appreciated. Rick Corners, Centralia, Jefferson County: Many more days like today (Friday) and it’s going to get serious. Thirty-five mph winds and 90 degrees are taking the sap out of things. Onefoot-tall corn is rolled up like pineapples already. A lot of the beans planted two weeks ago are going to be in very poor stands. The ground went from wet to dry in a couple of days. We had some scattered showers Thursday night. Some got 3 inches of rain and hail and others down the road a half mile got none. It looks like wheat harvest will start this week. I don’t think there has ever been wheat cut in May in this neck of the woods. Kevin Raber, Browns, Wabash County: No rainfall this past week. There has been some rolling of corn plants during the middle of the day. With nearrecord heat coming over the holiday weekend, our lack of soil moisture will show up even more. On the flip side, this warm, dry weather is quickly moving wheat harvest to us. I have heard some people will try to cut some wheat after the holiday weekend.
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com
Dean Shields, Murphysboro, Jackson County: We are very dry. We need rain quite badly. We got a little bit this past week, but it was very scattered. It sure helped out the crops. Corn planting basically is complete down here, but it is not growing very well because it is so dry. Soybean planting is over because a lot of farmers stopped planting because it is so dry. The majority of soybeans have been planted. I have heard of a few farmers starting to cut some wheat. The yield has been running fairly good from what I understand, and I will be cutting some wheat probably this week. First time for wheat for me in several years. This week we hope to get some rain. It sure would be nice to get the May rains we normally have. Randy Anderson, Galatia, Saline County: Only thing new to report this week is that we are now nine inches of rain below normal. Corn is showing signs of stress, very uneven, and rolling up at midday. Things you see in July, not in May. Beans look like they are in a holding pattern, not growing. I plan on starting to cut wheat Tuesday. We have to wait on a rain before we can do any double-cropping. Ken Taake, Ullin, Pulaski County: Hot temperatures and dry soils are the story here in Pulaski County. We received 0.6 of an inch of rain on Sunday (May 20). I heard amounts across the county ranging from 0.2 of an inch up to 1.2 inches. With the dryness of the soils and the hot temperatures, the moisture left rapidly. We were able to start planting beans again on Monday (May 21) and finished planting on Thursday. Some farmers have planted all their beans and some are still waiting on rain. The soils are just so dry there is not enough moisture to get beans up. Crops are really showing stress from the high temperatures and the lack of moisture.
Rise in farmland values less dramatic in first quarter BY DANIEL GRANT FarmWeek
Farmland values continued to climb the first quarter of this year, the Federal Reserve Bank of Chicago reported this month. But the rate of increase the first three months of this year slowed considerably compared to the rapid rise in prices experienced last year. The value of good farmland through the first quarter increased 8 percent in the Seventh Federal Reserve District, which includes the northern two thirds of Illinois and all or parts of Indiana, Iowa, Michigan, and Wisconsin. The rate of increase was down 12 percent from the previous year when the value of good farmland increased 20 percent in the Seventh District. “There’s been a bit of a slow-down in the increases (of good farmland prices),” said David Oppedahl, business economist for the Federal Reser ve Bank of Chicag o. “But there certainly still is a substantial appreciation in farmland values.” The rise in values may have slowed so far this year due in p a r t t o l owe r c o m m o d i t y prices, particularly for corn,
hogs, and wheat, and an increase in the amount of land available for purchase, according to the economist. “T here have been more proper ties coming out (to market), so the supply (of f a r m l a n d ) i s n’t a s t i g h t ,” Oppedahl said. The majority of ag bankers (about two-thirds) who responded to the most recent
Federal Reserve Bank survey anticipate ag land values will remain stable through the current quarter. The remaining one-third projected additional increases in farmland values during the second quarter. “It’s a very competitive loan environment,” Oppedahl said. “We have much lower debt-toasset ratios (than the previous two decades) and interest rates
have remained low.” The average loan-todeposit ratio in the first quarter this year dipped to 66.5 percent, the lowest level in 16 years. Looking ahead, Oppedahl doesn’t foresee a major crash of the market any time soon. “I don’t think we’re in a bubble,” he added. “ There certainly has been support (in
the form of high commodity prices and strong farm returns) for higher land values the last few years.” But lower returns and higher input prices could put pressure on land values in coming months. Input costs in the Seventh District were up 6.6 percent the first quarter this year compared to the same time last year.
Haymakers: Quantity good, quality spotty so far Good growing conditions this spring helped kickstart the growth and har vest of hay rather early this year. Illinois farmers as of the first of last week had cut 68 percent of the first alfalfa crop compared to the five-year average of just 19 percent. The amount of red clover cut (69 percent) last week also was well ahead of the five-year average pace (15 percent). “Dry, hot, windy days dried the soils out but made for excellent haymaking,” said Leroy Getz, a Far mWeek Cropwatcher from Car roll County. Ron Moore, a Cropwatcher from Warren County, said a lot of hay has been baled recently in his area and so far the quality is excellent.
But in other portions of the state, some growers weren’t as fortunate. Bob Gehrke, Illinois Farm Bureau District 1 director from Kane County, said the quantity of hay from his first cutting was g ood, but
Auction Calendar Tues,. May 29. 1 p.m. McDonough Co. Land Auc. Silvanus-Peterson Farm, 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,
the quality was poor. “Of all the years making hay, this is the poorest first cutting I’ve ever had, basically because of seven to eight days of frost,” said Gehrke, who grows about 200 acres of hay.
Meanwhile, many farmers anticipate getting an early start on wheat harvest as well. Nearly half the wheat crop (45 percent) was turning yellow as of the first of last week compared to the average of 1 percent. — Daniel Grant
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. worrell-leka.com Sat., June 9. 9:30 a.m. Farm machinery and misc. John Barlow, GRAYMONT, IL. Immke and Bradleys’ Auction Service. biddersandbuyers.com/immke Sat., June 9. 9 a.m. Farm & Industrial Eq Auc. BALDWIN, IA. Powers Auction Service. www.powersauction.com
Sat., June 9. 9:30 a.m. Farm machinery and misc. Donald G. Barton, NORRIS CITY, IL. Jamie Scherrer Auction Co. www.jamiescherrerauction.com Tues,. June 12. Will Co. Farmland Auction. Salzmann Farm. Soy Capital Ag Services. www.soycapitalag.com Wed., June 13. 6 p.m. 1,460+/- Ac. Fulton Co., IL. CANTON, IL. United Country, Wallingford Group. duckcreekauction.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
FarmWeek Page 8 Monday, May 28, 2012
environment
EPA proposals blow to Illinois energy, economy? BY MARTIN ROSS FarmWeek
The U.S. Environmental Protection Agency’s prospective regulatory agenda could cause a serious economic brownout for the energy sector and farmers and others who depend on it. That’s according to Todd Wynn, director of the American Legislative Exchange Council’s (ALEC) Energy, Environment, and Agriculture Task Force. ALEC, which includes state legislators from across the U.S., warns significantly higher consumer/business costs and major job losses
could result from five specific EPA proposals affecting utilities and coal and related industries (see accompanying details). “Mind you, there’s a whole slew of EPA regulations coming out in the next few years,” Wynn told FarmWeek at a Chicago global climate conference last week. According to ALEC analysis, Illinois heads a list of states likely to be most heavily impacted by EPA plans. West Virginia, Ohio, Alabama, Michigan, Indiana, Pennsylvania, Tennessee, Kentucky, and North Carolina also made the top 10.
Stringent new standards nationally could lead to power plant shutdowns, early “retirement” of at least 63 gigawatts of existing power capacity, energy price increases, and job losses, ALEC warned. Illinois could lose nearly 29,000 jobs as a result of five forthcoming EPA actions, “and that’s not calculating greenhouse gas emissions regulations,” Wynn said. Added EPA attempts to curb carbon dioxide and other greenhouse gas (GHG) emissions alone could lead to a 50 percent hike in gasoline and consumer electricity prices, a 75 percent boost in industrial
Monsanto acquires Tremont-based Precision Planting A prospering planting technology company in Tremont in Tazewell County is part of Monsanto’s new initiative to expand its business interests beyond plant breeding and biotechnology. Monsanto last week announced it bought Precision Planting Inc. in Tremont for $210 million, with a performance-based payment of up to $40 million. Precision Planting develops software, hard-
ware, and after-market equipment to help farmers improve the efficiency and effectiveness of their planting operations. The acquisition dovetails with Monsanto’s goal to help far mers improve agronomics and technologies in the field, and will become part of the St. Louis-based company’s newly for med Integrated Far ming Systems Unit, the St. Louis Post Dispatch reported.
electricity and home natural gas prices, and a 600 percent jump in utility coal prices, ALEC estimated. Illinois Farm Bureau President Philip Nelson, quoted in the ALEC study, warned “any costs incurred by utilities, refiners, manufacturers, and other large emitters to comply with GHG regulatory requirements will be passed on to the consumers of those products, including farmers and ranchers.” “This is going to affect agriculture, as well — agricultural facilities use a lot of energy in their production,” Wynn said. “There’s not a huge margin in agricultural production. You have a lot of competition, and when you increase costs such as energy, that could put a lot of farmers out of work.” With 47 percent of Illinois’ electrical generation derived from coal, major
regs targeted by ALEC reportedly could force retirement of 8,000 megawatts of electrical capacity (enough to power
‘When you increase costs such as energy, that could put a lot of farmers out of work.’ — Todd Wynn American Legislative Exchange Council
some six million homes), $1.8 billion in lost manufacturing output and $2.1 in lost state and government revenues by 2015. New regulations could cost Illinois’ coal industry $47.68 million in lost revenue, ALEC warned.
Regulatory ripples: On the wrong track? Economy Derailed: State-by-State Impacts of the EPA Regulatory Train Wreck, an American Legislative Exchange Council (ALEC) report based on a variety of economic studies, focused on five existing or proposed U.S. Environmental Protection Agency (EPA) regulations: • The Utility MACT (Maximum Available Control Technology) Rule, a mercury air toxics standard, could require retrofitting of as many as 753 electricity generating plants nationwide with new pollution controls. ALEC argued MACT standards are too stringent even for recently permitted plants “employing the best available technology.” No new coal plants likely would be built under the rule, and up to 15 gigawatts of electricity could be forced into early retirement, ALEC warned. EPA projects the rule’s annual cost at roughly $11 billion. • According to ALEC, EPA’S proposed Boiler MACT Rule, focusing on industrial boiler emissions, threatens nearly 800,000 jobs nationwide, though the agency “has not estimated a single health benefit for reducing the pollutants that this rule was intended to address.” • The Cross-State Air Pollution Rule, approved last July to target power plant emissions that cross state lines, reportedly threatens up to 7 gigawatts of electric generation. EPA estimates that the rule could cost $2.4 billion annually, though recent data indicate emissions targeted by the plan have declined over the past few years. • EPA is considering regulation of coal combustion residues as a hazardous waste, which in ALEC’s view would have “significant consequences on electricity generation and a robust recycling industry.” EPA estimates the average regulatory cost over the next 50 years at almost $1.5 billion per year. The rule would impact a roughly $2-billion-per-year coal ash recycling trade that uses the byproduct for a variety of purposes. • EPA also is considering cooling water intake rules that would require many fossil fuel and nuclear power plants to replace their once-through cooling systems with cooling towers, in an attempt to protect fish populations. The move could affect more than 1,000 coal, oil steam, and gas steam generating plants (totaling 252 gigawatts of capacity), as well as roughly one third of all current nuclear capacity (some 60 gigawatts). That could mean early retirement of up to 41 gigawatts of power, ALEC suggested.
Page 9 Monday, May 28, 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 10 Monday, May 28, 2012
EDUCATION
Teacher’s ag exposure changes her, students, colleagues BY KAY SHIPMAN FarmWeek
“I thought that agriculture was just farming. I didn’t know it was clothing, business, forestry, and much
more,” one Kane County eighth grader wrote after his middle school’s first agriculture project. An eye-opening experience for an eighth grade teacher
Cathy Britts-Axen, a special education teacher at Central Middle School District in Burlington, participates in a Kane County Summer Ag Institute activity. After attending two Ag Institutes last summer, Britts-Axen spearheaded a team of six teachers who developed a multi-curricula agbased project for 152 eighth grade students. (Photo courtesy Kane County Farm Bureau)
grew into the first agricultural awareness/global food unit for 152 eighth graders and a six-teacher team at Central Middle School District 301 in Burlington. “My eyes were so opened to agriculture. It just blew my mind,” eighth grade special education teacher Cathy Britts-Axen told FarmWeek. Last summer Britts-Axen was amazed by the information she received at her first Summer Ag Institute (institutes focus on integrating ag concepts into the general curriculum). Britts-Axen’s experiences were so educational that she attended a second Summer Ag Institute. The students needed to “heighten their awareness of agriculture ... We (teachers) have to be exposed” to agriculture, Britts-Axen said. She wanted to combine what she learned with an eighth grade service project. Suzi Myer, Kane County Farm Bureau ag literacy coordinator, remembered BrittsAxen: “She soaked up everything she could. She was so excited. This (information) obviously went to her class-
room and other teachers.” Britts-Axen’s original idea expanded to involve 152 eighth graders, their teachers, and a two-day immersion into agriculture with a global food service project for third-world countries. She applied for and received an Illinois Agriculture in the Classroom (IAITC) grant, but confided she and her fellow teachers were determined to push ahead with or without a grant. The students not only learned about farming and related industries, but they also learned about global food issues by working with the Feed My Starving Children, a non-profit organization with offices in Illinois. The students learned the history of crop rotation, math applications of futures trading, and the science involved with genetic crop improvements and hydroponic systems. They learned how U.S. farmers feed the world and
about the small amount of soil used to produce the world’s food supply. As an English assignment, the students wrote about their experiences, and Britts-Axen sent samples of their work along with her report to IAITC. Another sign of the program’s success was the fact that no parent called the school to ask why the students were learning about agriculture. “There’s always one that questions,” Britts-Axen noted. In fact, 20 parents volunteered to help. Britts-Axen and her fellow teachers are looking ahead to next fall, a new eighth grade class, and more lessons about agriculture to build on this year’s success. “I think agriculture is very important,” a student wrote. “To me, it’s sad people seem not to care that pretty soon farms may be gone. Agriculture is so important to our society.”
Illinois Farm Bureau education specialist Laura Miller, standing, helps county Farm Bureau managers and ag literacy coordinators make paper bag teaching tools for summer reading programs. (Photo by Kay Shipman)
Agriculture makes a natural fit for ‘delicious’ summer reading Farming and agriculture fit perfectly with a statewide reading program to be offered this summer by the Illinois Library Association. With the theme “reading is so delicious,” Illinois Agriculture in the Classroom (IAITC) coordinators and volunteers should contact their public libraries for opportunities, according to Kevin Daugherty, Illinois Farm Bureau education director. Last week, more than 80 county AITC coordinators, Farm Bureau managers, and educators met in Bloomington. Daugherty and Laura Miller, IFB education specialist, discussed activities and books that would connect agriculture and farming to summer read-
ing programs that will be offered to readers of all ages, especially children. One project focused on food production, making a lunch box from small paper bags. AITC coordinators assembled the bags into scrapbooks into which children may draw pictures or paste food labels of their lunch foods. The goal is to have children learn who grew the ingredients for their lunches and where those foods were grown and processed, Miller said. She suggested a wide variety of food-related books and activities that would be suitable for summer reading activities. The stories and activities would support state learning standards for English and language arts, Daugherty noted. For more information, contact your county ATIC coordinator or IAITC at 309-5573334. — Kay Shipman
Page 11 Monday, May 28, 2012 FarmWeek
Education
IAITC readying to help teachers, students with new ed standards BY KAY SHIPMAN FarmWeek
New learning standards, referred to as common core, will hit Illinois classrooms over the next two school years, and Illinois Agriculture in the Classroom (IAITC) will be prepared. Last week, AITC county coordinators learned more about the new standards for kindergarten through 12th grade students and how AITC resources will support educators and students. “Ag in the Classroom will not go away because of common core,” Kevin Daugherty, Illinois Farm Bureau education director, told coordinators. Illinois and 48 other states have adopted new common core standards for English, language arts, and
guess about agriculture’s application with new language arts standards. Agriculture-related books are used as examples to teach new language arts standards, Daugherty said. National educators are agricul‘Ag in the Classroom will not go away “using ture (exambecause of common core.’ ples), the books we’re (IAITC) — Kevin Daugherty already using,” IFB education director Daugherty told educators. Daugherty and his staff plan to analyze and correthe 2014-2015 school year. late the new standards to AITC Daugherty anticipated many materials and to present the inforapplications for AITC materials mation to teachers and county coorwith new science standards when dinators. those standards become available. Educators nationwide are awaitBut educators won’t need to math to help measure a student’s proficiency in those subjects. Science core standards have not been released, but are coming. All the standards are to be in place by
Milk Days, Horseradish Festival
Illinois commodities weekend festivals focus
A pair of festivals coming up this weekend (June 1-3) will pay tribute to two commodities well known in separate regions of the state. In Northern Illinois, the 71st Annual Milk Days will be held in Harvard Friday through Sunday. The tradition started in 1942 when citizens of the McHenry County town wanted to honor area dairy farmers for expanding milk production to help with the World War II effort. At the time, there were seven commercial dairies within a 15-mile radius of town that processed and shipped more milk than anywhere else in the world. Harvard thus was proclaimed the “Dairy Capital of the World.” Milk Days grew into a three-day event that features a dairy cattle show, a milk-drinking contest, a street dance, and live music each night. In Southwestern Illinois, the Collinsville International Horseradish Festival will be held Friday through Sunday. This year marks the 25th anniversary of the event. The festival, which will showcase the root’s diverse culinary applications, also will feature “root games,” a 5k run/walk, and live music. Collinsville, the self-proclaimed “Horseradish Capital of the World” produces about 85 percent of all horseradish consumed by humans.
Tours planned for local growers The University of Illinois Extension in Fulton, Mason, Peoria, and Tazewell counties and Spoon River College are again working together to assist new and potential vegetable and fruit growers. Two field tours are planned for June and July. The preregistration deadline for each tour is June 6. A June 11 tour will take place in the Fulton and McDonough counties area. Participants will meet at Spoon River College, Canton, before traveling to a local grower in rural Fulton County. The group will then travel to Barefoot Gardens, Macomb. The event will start at 1 p.m. and end about 7 p.m. On July 9, tour participants will meet at the Spoon River College campus. The first stop will be Living Earth Farm near Farmington. The group also will tour Prescott’s Farm/Petal Song Apiaries and another operation that has not been determined. The event will start at 3 p.m. and end about 7 p.m. The cost for each session is $20. Transportation will be provided for the first 20 registrants. To register, call the U of I Extension Fulton-Mason-Peoria-Tazewell unit at 309-547-3711.
ing not only all the new common core standards, but also how students will be tested on them. Currently in Illinois, high school juniors statewide must take a combination achievement test and college entrance exam. Achievement tests are given for reading and math in grades three through eight and for science in grades four and seven. There is speculation students in every grade will be tested four times a year on the new common core standards, according to Daugherty. Daugherty envisioned a need for AITC materials and county coordinators who are prepared to help teachers with materials related to new common core standards. Common core “is rapidly becoming the new normal for teachers,” Daugherty said.
Registration open for IAITC golf outing The 16th annual Illinois Agriculture in the Classroom (IAITC) Golf Outing will be June 14 at the Elks Country Club and the Wolf Creek Golf Club, both in Pontiac. The event raises money to benefit agriculture literacy in Illinois. The driving ranges will open at 9 a.m. with a shotgun start at 10:30 a.m. A social hour, banquet, and auction sponsored by Country Financial will start at 4:30 p.m. at the Elks Country Club.
The registration fee is $130 per golfer or $520 per foursome, which includes green fees and cart, lunch and dinner, refreshments, driving range practice, team photo, and gift bag. Those interested in attending the banquet only may register for $50 each. All golfers registered by Friday will be eligible for a special drawing. Golfers will compete for a number of prizes. Promotional rates are offered for family and teacher
or ag literacy coordinator participation. The family rate is $200 per pair. Golfers age 18 and younger playing with a parent or grandparent are eligible for this discount. A teacher or ag literacy coordinator may play free with three additional registrations. Online registration is available on the IAA Foundation website at {www.iaafoundation.org} or by completing and mailing a registration form to IAA Foundation, 1701 Towanda Ave., Bloomington, Ill., 61701.
FarmWeek Page 12 Monday, May 28, 2012
SPOTLIGHT ON COUNTIES EXPLAINING EQUIPMENT
HCFB ‘Down on the Farm’ event draws 200 elementary students BY SARA BROCKMAN
More than 200 first graders from Hancock County elementary schools participated in the eighth annual Hancock County Farm Bureau (HCFB) “Down
Brown County Farm Bureau recently held its annual Farm Safety Day at the Brown County Elementary School for Pre-K through fourth grade students from Brown County Elementary and St. Mary’s School. Here, Brown County Fire Chief Brian Gallaher explains to some of the students the workings of the department’s rescue equipment. In the background is a tractor displayed by A. C. McCartney which was used to teach students safety features of being around farm equipment. The students were able to take turns sitting in the tractor seat as they asked questions. Illinois Farm Bureau and Country Financial co-sponsored the event. (Photo by Glenna Dormire, Brown County Farm Bureau manager)
on the Farm” program at the Hancock County Extension Center. Students had the opportunity to visit eight different stations. Merlin Tobias, a farmer from Basco, spoke to the kids about agriculture in Illinois. Other highlights included a hayrack ride, petting zoo, equipment tour, moo moo masks, milk a cow, farm safety, and farm chore races. Prairie Farms Dairy donat-
ed 200 cartons of milk and Martin and Sullivan’s John Deere provided machinery for the event. Carol Jerrod, HCFB Women’s Committee chairman said, “We feel it is important to give students a chance to experience the farm life. “It is quite the sight to see 200 kids running around the Extension Center with smiles on their faces. You can truly see how excited all of the students were to interact with the animals and milk the cows!” More than 20 Farm Bureau members donated their time and energy in making this annual event a success. Sara Brockman is manager of Hancock County Farm Bureau. She can be reached at 217-3573141.
DISCUSSING DIFFERENCES
Chinese Vice Minister of Agriculture Zang Taolin, right, and other dignitaries from People’s Republic of China, met recently with local Cook County far mer Mike Rauch of Tinley Park on a farm visit in the county to discuss farming and government differences. (Photo courtesy Cook County Farm Bureau)
DATEBOOK June 14 IAA Foundation Golf Outing, Pontiac Elks and Wolf Creek Golf Club, Pontiac. Summer Horticulture Field Day, 8:30 a.m. to 2 p.m., Kuipers Family Farm near Mape Park. For reservations, e-mail ilsthortsoc@yahoo.com or call 309828-8929. July 19 2012 Illinois Forage Expo, 9 a.m. to 3 p.m., Pittsfield.
Page 13 Monday, May 28, 2012 FarmWeek
from the counties
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OOK — Tickets are available for the Tuesday, Aug. 7, Chicago White Sox game vs. the Kansas City Royals. Tickets are $18 for lower reserved seating and $11 for upper box seats. Call the Farm Bureau office to request an order form, visit {www.whitesox.com/fbn} (service fee will apply), or call 866-769-4263 and use the code “CCFB” (service fee will apply). ENRY — Henry and Rock Island County Farm Bureaus will sponsor a marketing program at 6:15 p.m. Thursday, June 21, at the Moline Viking Club, Moline. Steve Johnson, Iowa State University Extension farm and ag business management specialist, will be the speaker. A buffet dinner will be served. Cost is $20 if pre-registered or $30 for walk-ins. Call the Henry County Farm Bureau office at 309-937-2411 or the Rock Island County Farm Bureau office at 309-736-7432 for reservations or more information. • Members may purchase discounted tickets to the Henry County Fair, which will be June 19-24. Call the Farm Bureau office at 309-937-2411 for more information. • The Young Leaders will sponsor the pedal tractor pull at 12:30 p.m. Saturday, June 23, at the Midway Tent, Henry County Fairgrounds. Call the Farm Bureau office for more information. ASALLE — The annual LaSalle County Farm Bureau Foundation Ag in the Classroom golf outing and benefit will be at noon Friday, June 29, at Senica’s Oak Ridge Golf Course, LaSalle. Cost is $65, which includes golf, cart, and steak dinner. Call the Farm Bureau office at 815433-0371 for reservations or more information. EE — Bureau and Lee County Farm Bureaus will sponsor their annual golf
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outing at 9 a.m. Friday, June 29, at Timber Creek, Dixon. The tournament will be a fourperson 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 at 815-857-3531 or go online to {www.leecfb.org} for more information. • Carroll, Lee, Ogle, and Whiteside County Farm Bureaus, and Sauk Valley Bank will sponsor a marketing workshop at 7 p.m. Wednesday, June 20, at the Comfort Inn, Dixon. Steve Johnson, Iowa State University Extension farm management specialist, will be the speaker. Call the Farm Bureau office at 857-3531 or e-mail leecfb@comcast.net by Friday, June 15, for reservations or more information. ADISON — Farm Bureau will sponsor a grain agreement meeting at 7 p.m. Tuesday, June 5, at the Farm Bureau office. Jerry Quick, former Illinois Farm Bureau senior counsel, will discuss grain contracting arrangements. Call the Farm Bureau office at 618-656-5191 for reservations or 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. • The Legislative Committee will sponsor a bus trip Thursday, June 28, to Springfield. Participants will visit the Executive Mansion, the Old State Capitol and the current capitol, the Illinois Department of Agriculture building, and a farmers’ market. Cost is $40, which includes lunch at the Golden Corral. Call the
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Cover crop field day, pasture walk planned Cover crops and pastures will be the focus of a field day from 10 a.m. to 3 p.m. Saturday in Arrowsmith. Reservations are requested for a meal and hand-out materials. The activity will start with a cover crop program, which will include financial assistance options and nitrogen applications. A meal will be provided at no charge to registered participants. The pasture walk will start at 1 p.m. with information on rotational grazing, endophyte-friendly fescues, extending the grazing season, and pasture improvements. The event is sponsored by the Illinois Grazing Lands Conservation Initiative, Kankakee County Graziers, Illinois Forage and Grassland Council, University of Illinois Extension, Natural Resources Conservation Service, Earlybird Feed & Fertilizer, Schuette Seeds, and Pro Harvest Seeds. To register or for more information, call Elton Mau at 309-825-5435 or e-mail him at emaufarm@gmail.com.
Farm Bureau office for more information. TEPHENSON — A Stroke Detection Plus event will be from 9 a.m. to 4:30 p.m. Monday and Tuesday, June 18-19, at the Farm Bureau office. Farm Bureau members will receive a discount on the package price. Call 877-732-8258 to schedule an appointment. • The “Stephenson Scenes” photo entries are due June 19. Public voting at the Stephenson Ag breakfast and county fair will determine the winners. Visit {www.stephensoncfb.org} for more information. • The Stephenson County Farm Bureau Foundation silent auction will be from 6 to 10 a.m. Saturday, June 23, at the Stephenson Ag breakfast at the fairgrounds. Proceeds will support scholarships and education needs. • A blood drive will be from 6:30 to 11:30 a.m. Saturday, June 23, during the Stephenson Ag breakfast at the fairgrounds. First-time donors will receive a free season pass to the fair, and all donors will be reimbursed for their breakfast. • Seats are still available for the Cubs vs. Brewers ballgame
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Aug. 20 at Miller Park. The bus will leave Freeport at 4 p.m. Cost is $65 for members and $70 for non-members. Call 815-232-3186 for reservations. ERMILION — Farm Bureau will host AgriVisor’s marketing skills workshops at the Farm Bureau office. Three workshops will begin with Basics on Monday, June 25; Strategies and Implementation on Monday, July 16; and Advanced Ideas on Monday, Aug. 6. All sessions will begin at 6:30 p.m. Cost is $30 for each session or $70 for all three. Reservations are needed by Wednesday prior to each workshop. Call the Farm Bureau office at 217-442-8713 for more information. INNEBAGO — Farm Bureau will sponsor a bus trip Thursday, June 7, to the Chicago Cubs vs. Milwaukee Brewers game at Miller Park, Milwaukee. The bus will leave the Farm Bureau office at 9:30 a.m. Cost is $55. Tickets are sold on a first-come, first-served basis. Call the Farm Bureau office for reservations or more information. • Farm Bureau will sponsor a defensive driving
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course from 10 a.m. to 3 p.m. Tuesday and Wednesday, June 12-13, at the Farm Bureau office. Cost is $18. Lunch will be served. Call the Farm Bureau office at 815-9620653 for reservations or more information. • The Boone and Winnebago County Farm Bureau Prime Timers will sponsor a bus trip Wednesday, June 27, to the Dancing Horses Theater, Lake Geneva. Participants will see an exotic bird show, followed by lunch and the Dancing Horses show. The bus will leave the Winnebago Farm Bureau office at 9:30 a.m. and the Cherry Vale Mall at 9:45 a.m. Cost is $70 for adults and $60 for children 12 and under. Call the Farm Bureau office at 962-0653 by Friday, June 8, for reservations or more information. “From the counties” items are submitted by county FarmBureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
FarmWeek Page 14 Monday, May 28, 2012
profitability
We’re swimming in natural gas liquids/propane this summer BY RANDY MILLER
The summer driving season typically is the time when propane and natural gas inventories rebuild after a long winter heating season. With record or near record warm temperatures this past winter, inventories are already near late-summer levels. Natural gas and natural gas liquids,
including propane produced from shale plays in the United States, are at record production levels and will continue to grow (see chart). So much natural gas is expected to be produced that many in the market fear that storage facilities will be full before the heating season arrives.
USDA
Farm Service Agency June 1 deadline approaches for these Farm Service Agency (FSA) programs: The enrollment for 2012 Direct and Countercyclical Program (DCP)/Average Crop Revenue Election (ACRE) program will end Friday. Remember all farmers with an interest in DCP base acres must be included on the DCP/ACRE contract and receive a share of DCP/ACRE payment for the farm. All farmers receiving a share greater than zero on the DCP/ACRE contract must sign the contract no later than Friday. Changes on the farm, such as ownership changes, farmer changes (individuals and entities), and crop-share arrangement changes, after enrolling in DCP/ACRE must be reported to your local FSA office. Changes to 2012 DCP/ACRE contracts cannot be made after Sept. 30, 2012. The sign-up for 2010 losses under the Supplemental Revenue Assistance (SURE) Program runs through Friday. SURE provides benefits for farm revenue losses due to natural disasters that occurred during the 2010 crop year. SURE is available to eligible farmers on: •Farms in counties with ag secretarial disaster declarations, including contiguous counties, that have incurred crop production or quality losses, or both, and includes all crops grown by a producer nationwide, except grazed crops. • Any farm on which, for the crop year, the actual farm production is 50 percent or less than the farm’s normal production because of disaster-related conditions.
M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.
Range Per Head $27.14-$46.50 $62.99
Weighted Ave. Price $38.06 $62.99
This Week Last Week 109,268 136,990 *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 $79.89 $78.57 $59.12 $58.14
Change 1.32 0.98
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 120.75 n/a n/a 122.20 118.00 4.20
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 n/a 148.38 n/a
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 110-160 lbs. for 140-162 $/cwt. (wtd. ave. 155.99).
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 05-17-12 12.7 24.9 23.3 05-10-12 20.5 28.0 27.6 Last year 9.5 31.2 36.1 Season total 1133.4 993.6 1160.4 Previous season total 1382.0 1229.0 1265.4 USDA projected total 1315 1025 1700 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Let’s look at some of the numbers to see where we might end up before the heating season starts. Current Randy Miller propane inventory levels in the U.S. are more than 50 million barrels; the five-year average is 30 million barrels in early June. Inventory builds have averaged more than 20 million barrels, which would put us at more than 70 million bushels by the end of October. Old timers (like me) would tell you that comfortable inventory levels in the U.S. to start the heating season need to be around 60 million barrels, so the numbers say that we will start that season in great shape. Natural gas stocks look similar right now, but could be drawn down a bit this summer as they are used to produce electricity for cooling. If current temperatures are an indication of what’s to come, it could be a hot one. Natural gas inventories in the U.S. currently are at 2,600 billion cubic feet (bcf), some 800
bcf above the five-year average. With average builds this summer, inventories of natural gas would be at 4,500 bcf. In U.S. history, natural gas stocks have never been above 4,000 bcf. Within the United States, production increases due to shale production plays have resulted in 90 percent of the natural gas demand being supplied from within. Propane, now 70 percent made from natural gas, is being exported to other countries — something unheard of five years ago. What will keep inventories in check? Look for continued increases in export activity.
Exports, mainly from the Gulf Coast area, in 2011 averaged nearly 3.75 million barrels each month. Export facilities are expanding and capacity is expected to increase by August, doubling within a few years. What to do as market conditions are ever-changing? Keep in touch with your local FS propane salesman who can offer you programs to take advantage of the current market situation. Randy Miller is GROWMARK’s propane operations manager. His e-mail address is rmiller@growmark.com.
Fuel prices may have peaked early this year BY DANIEL GRANT FarmWeek
Gasoline prices reaching $5 per gallon this summer, a concern when some local prices topped $4 recently, isn’t expected to materialize after all. In fact, fuel prices already may have peaked for the year, according to Jackie McKinnis, GROWMARK energy analyst. “I’d say we’ve probably seen our high this year, unless something happens with Iran (that causes oil prices to skyrocket),” McKinnis told FarmWeek. The national average prices of regular gasoline and diesel fuel, as of last week, trended down for the sixth consecutive week. The average gasoline price, from April 9 to May 21, dropped from $3.88 to $3.62 while the average price of diesel during the same time eased from $4.15 to $3.96. “The old-time trend is to peak out closer to Labor Day,” McKinnis said. “But the last three years, since the recession, we tend to peak out earlier around June or July. The same thing has happened so far this year.” McKinnis believes fuel prices mostly trended lower due to plentiful gasoline and oil stocks, concern about Greece potentially exiting the euro system which could worsen Europe’s debt problem and reduce fuel demand, and a strengthening dollar. “The dollar has been making a big surge,” she said. “That tends to weaken commodities.” Oil prices recently dipped below $90 per barrel. The Organization of Petroleum Exporting Countries (OPEC) has been ramping up production to ease high prices and maintain demand, according to the analyst. Oil supplies this
month were near a 22-year high. “OPEC has been actively overproducing to try to get prices to stay down,” McKinnis said. “It’s working.” Meanwhile, U.S. oil production has been bolstered by increased production in North Dakota, which recently moved ahead of Alaska as the second-largest oil-producing state in the U.S. behind Texas. The reopening of a pipeline from Oklahoma to Texas also has allowed domestic oil to be shipped around the country and narrow the spread between domestic and imported crude. Oil production has expanded in North Dakota due to improved horizontal drilling techniques in the Bakken oil shale field and Three Forks formations in the western part of the state. An early corn harvest in the South and Midwest could pressure diesel prices, though. Diesel fuel is used more widely around the world than gasoline, and diesel stocks subsequently are tight. “Diesel is our strongest market,” McKinnis said. “With the possibility of an early harvest, there is a fair chance diesel prices could make a run near previous highs.”
Page 15 Monday, May 28, 2012 FarmWeek
PROFITABILITY Corn Strategy
CASH STRATEGIST
Long growing season ahead The initial U.S. corn crop condition rating was historically high but not surprisingly so. Only three other times in history, 1991, 1994, and 2007, has the initial rating been higher than this year’s but not by much. National ratings were first available in 1988. Of the three higher starts, two ended up with corn yields slightly below trend, while one (1994) was well above trend. That crop had a new record yield, 138.6 bushels per acre. The accompanying graphic is an index of the crop ratings we first put together 20 years ago. It’s calculated using one point for each percent in the very poor rating, ranging up to five points for each percent in the excellent rating. We then sum the total of all categories. A number of people are now using a similar index rating. We prefer an index-based rating to the good/excellent categories usually quoted because it takes into account the portion of the crop in the extremely poor categories. Even then, we view the condition ratings with a high degree of skepticism but find
them useful. They are a subjective look at the crop, and are not based on “hard” data. The 2010 crop year was a perfect example of why one should treat them with care. That year, the condition rating persistently indicated the crop was significantly better than it really was. We don’t get too wrapped up in the week-to-week changes in the condition ratings because they are subjective. Instead, we prefer to look at the trend. We’ve also found it’s not good to draw many conclusions about them until mid-July. Even on good years, they’ve tended to fade into late-July/early-August, only to improve after. For now, all the corn rating tells us is the crop looked good after it emerged. Since last week’s survey, moisture supplies have deteriorated. Along with other factors, that should lead to a lower rating after Memorial Day. And the condition likely will decline until there’s a general rain across the Midwest. It may be another couple of weeks before USDA releases its initial rating for soybeans. Unless there’s widespread rain soon, the initial rating will not be as good as it was for corn. But, everything we’ve said about using the crop rating for corn is true for soybeans as well. These early numbers don’t mean much.
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309-557-2274
Cents per bu.
ü2011 crop: Old-crop prices have carried a premium to the new crop through the winter because of perceived tight stocks. Recent action in the futures spreads and spot basis levels indicate old-crop prices may be starting to gravitate to new-crop price levels. This indicates producers should be more aggressive in pricing remaining old-crop supplies. Use prices above $6 on July futures to wrap up sales. ü2012 crop: Use rallies near resistance at $5.28 and $5.35 on December futures to make catch-up sales. We may add a sale if December hits $5.25; check the Hotline closely. We prefer hedge-to-arrive contracts for making sales, but plan to tie up the basis by mid-summer. vFundamentals: The corn crop is off to a great start, with the first condition report indicating 77 percent of the crop was in good/excellent condition. That was the fourth-best start in recent history. But traders and producers already are discounting potential because of the persistent dry weather and emerging drought spots.
Soybean Strategy
ü2011 crop: Soybean prices continue to erode because of economic fears despite perceived positive demand signals. Action indicates this market is “out of gas” for now. We urge you to use rallies to $13.75-$13.90 on July futures to sell remaining old-crop soybeans other than any “gambling stocks” you want to hold into summer. ü2012 crop: Use rallies to $13 on November futures to get sales up to recommendation. Check the Hotline; we may add to sales at that mark. vFundamentals: Demand looks good on the surface, but talk of Chinese cancellations last week suddenly made the industry concerned it may be overly optimistic on long-term expectations. Poor world economic numbers and a persistently strong dollar are undermining expectations as well. U.S. pro-
duction hopes have become a little uncertain with fear the dry weather in the South potentially will cut doublecrop plantings and may be stressing some of the singlecrop plantings across the Midwest.
Wheat Strategy
ü2012 crop: Wheat prices quickly set back following a steep short-covering rally. Use current strength to make catch-up sales. Leave orders to price another 15 percent if Chicago July trades above $6.80. Producers selling 100 percent off the combine need to be aggressive making sales on this rally. vFundamentals: The
recent price surge was tied to concern about dry weather in the U.S. Plains, Russia, China, and Australia. However, some of this concern has eased, with weather forecasts indicating improving condition, especially in Australia and Russia. U.S. winter wheat harvest has reached southern Kansas where yields could prove disappointing because of the recent hot, dry period. Still, the hard red winter crop will be significantly better than last year’s crop. And unless a significant problem develops, wheat fundamentals will only be “less negative” than they were a couple of months ago.
FarmWeek Page 16 Monday, May 28, 2012
pERspEcTIvEs
Making the right connections with local food producers, buyers Here’s something to chew on: In 2010, Illinois’ 76,000 farmers generated $16 billion in economic output, securing the state’s position as one of the most productive growing regions in the world. What if we could do even more? Traditionally, Illinois has shipped much of what it grows out of the state and imported most of the food consumers buy at the grocery store. But in recent years, new opportunities have KATHLEEN opened up to compleMERRIGAN ment and build upon our existing assets by developing a strong local food economy. The economic development potential of this trend is enormous. According to a recent study, if the State of Illinois met its demand for fresh produce with production from Illinois farms, farm sales would increase by $264 million and 2,600 jobs would be created. Add products like meat, milk, and grains to the list and the impact would be even greater. A strong local food economy is built on relationships between farmers and consumers. Sometimes it’s a direct connection, like those forged at farmers’ markets. Other times it’s indirect: Consumers find local products at the grocery store, in restaurants, in their school, or hospital, or workplace cafe-
terias. Unfortunately, building these indirect connections is more difficult than it might seem. Take Ken Ropp, a Central Illinois dairyman whose family started Ropp Jersey Cheese in 2006. He now sells 60 varieties of cheese at a farm store, farmers’ markets, an ever-growing list of grocery stores, and even local schools. But he faces a major challenge: Ken spends the majority of his time distributing cheese to 140 locaSHEILA tions within 100-mile SIMON radius of the dairy in Normal, which limits his ability to scale up. Other Illinois producers are challenged by a lack of processing, packing, or storage space to get their products ready to sell. Whether it’s preparing local food for sale or distributing it to buyers, Illinois has a serious deficit when it comes to local food infrastructure. Enter an innovative business concept called a food hub. Food hubs serve as central collection points for products from many small and midsized farms; they provide space and equipment for storage, and they often do processing and packing. With the volume of products they collect from the many local farms they work with, food hubs can sell to large buyers such as regional grocery chains.
Many hubs even have a distribution arm that delivers the products. Food hubs help small and mid-sized farms and ranches reach markets they could never access on their own. Nationwide, nearly 200 food hubs are connecting farms with these new opportunities, putting people to work and expanding consumer access to healthy, local food in the process. Food hubs are one piece of a broader economic development strategy that taps into the booming consumer demand for local food in Illinois. That’s why earlier this year, the USDA and the State of Illinois announced a collaborative effort to help jumpstart food hubs, working closely with partners such as the University of Illinois Urbana-Champaign and the Illinois Farm Bureau. We developed a streamlined funding application checklist to help farmers and businesses navigate state and federal grants and loans to support food hubs. We are conducting technical workshops and hosting events to connect farmers and buyers. As we travel through the state to share these resources, one thing is clear: With the
right infrastructure, we can bridge the gap between Illinois farmers and consumers, between our state’s rural communities and urban centers. If we do it right, everyone benefits. In late April, nearly 200 food hub developers from across the country met in Chicago to share strategies and best practices. It was fitting that they chose Illinois to hold their event. It is a state with enormous agricultural resources — and a great pool of consumers. If we make the connections, we’ll be serving up both better dinners and a stronger economy. Sheila Simon, Carbondale, is the lieutenant governor of Illinois. Kathleen Merrigan is deputy secretary of the USDA.
Many farmers ‘pay it forward’ with Domino’s pizza My family participated in the “Ag Pizza Party” to show our support for Domino’s Pizza, which recently announced it would rely on animal experts to determine the best way to raise farm animals for food production. As a farmer, I respect Domino’s for CHRIS its common CHINN sense decision and for trusting the experts in animal care. That’s why we are among the thousands of families across the nation to show a little love back to Domino’s. When we picked up our pizza after a 45-minute drive from the farm, we also left a thank you card with the manager letting him know we valued Domino’s support for farmers, ranchers, veterinarians, and nutritionists. Our family relies heavily on these experts to take care of our hogs. They are not just animal care specialists; they are a part of our family farm man-
agement team. They know the nuts and bolts of our farm and family, and they help us customize the care we give our livestock. Every farm is different, just as every person and breed of animal is different. Our family has been raising livestock for five generations. It’s a tradition we are proud of and we hope our children will have the opportunity to one day follow in our path. Our animals rely on us seven days a week to care for them. We do this no matter the hour of the day or the day of the week. Animal care is a top priority for our family. That’s why we rely on the expert advice of our veterinarian, nutritionist, and other animal experts when it comes to the daily care we give our hogs and cattle. We use gestation stalls on our farm to protect our sows during pregnancy from larger, more aggressive “bully sows.” The stalls also allow us to monitor feed intake of each individual sow and tailor nutritional needs individually. If a sow isn’t eating, we know it right away and can prevent problems from occurring.
We also are able to give each sow individual hands-on care daily by using the stalls. Our animals are well cared for, content, and comfortable. Until the animal experts we work with tell us there is a better way, we will continue to protect and care for our sows in this way. So, with the onslaught of animal rights activism playing out in the marketplace, the decision by Domino’s speaks volumes to me as a farmer. It shows the company trusts the experts I trust. And it shows they trust me. I appreciate that. The trust demonstrated by Domino’s also shows me that the pizza company does not want to force regulations on farmers. There’s already a lot of consolidation in hog farming in America, with independent hog farmers declining the most in numbers. We own our facilities and our animals. We have a big stake in the success of our business and in the happiness of those who buy bacon, ham, and sausage made from our hogs. Mandating unrealistic time-
lines on family farmers regarding the animal care methods they choose could force more hog farmers out of business. I know that is not the goal of any company, but the unintended consequences of decisions like these can greatly influence family farms like mine.
Thank you, Domino’s, for supporting our farm and ranch families. Chris Chinn, a fifth-generation hog farmer from Clarence, Mo., is a former chair of the American Farm Bureau Federation’s national Young Farmers and Ranchers Committee.
LETTER TO THE EDITOR
Reader questions NAFTA success
Editor: In your May 14 edition of FarmWeek, you ran an article titled “NAFTA succeeds beyond expectations, spurs economies” by John Block, former U.S. agriculture secretary. I was a little puzzled by what Mr. Block was implying. Yes, U.S. agricultural exports were up to both Canada and Mexico, and total trade had increased, but is there more to this picture? Labor statistics by the Economy Policy Institute show a loss of 682,900 U.S. jobs. According to the United States
Census Bureau, U.S. trade with Mexico in 1993 was a deficit of $10.8 billion and in 2011 a deficit of $65.6 billion. U.S. trade with Canada in 1993 was a deficit of $10.8 billion and in 2011 a deficit of $35.6 billion. The combined U.S. 2012 deficit for the two countries is running at a rate of more than $100 billion. The net effect of NAFTA is corporate profits are up, but Americans have lost jobs and U.S. trade deficit has ballooned. I cannot see how these facts can be construed by Mr. Block as “NAFTA has succeeded beyond imagination.” KEITH GRAY WESTLAND, Berwyn