Farmweek June 30 2014

Page 1

Jim Spradlin becomes GROWMARK Inc. chief executive officer in mid-September. page 2

Get a handle on the current state of farming at the July 30 IFB Commodities Conference. page 7

Wheat growers report mixed conditions of high yields accompanied by low test weights and vomitoxin. page 3

Report: Climate change will lower crop yields

Monday, June 30, 2014

Two sections Volume 42, No. 26

SIGN OF PATRIOTISM

BY DEANA STROISCH FarmWeek

Owners of this Stephenson County farm celebrate Independence Day year-round. The patriotic corn crib reminds passersby of American sacrifices made for freedom that still continues 238 years later. Happy Fourth of July! (Photo by Ken Kashian)

Assuming no significant adaptation, farmers in Illinois could face up to a 15 percent average yield loss in the next five to 25 years. They could also see up to a 73 percent average yield loss by the end of the century as the result of climate change, according to a report released last week. But there’s hope. The report, “Risky Business: The Economic Risks of Climate Change in the United States,” described the agriculture industry as “probably the best equipped to manage these risks.” “Farmers have always adapted to changing weather and climate conditions with adaptation and flexibility built into their business models,” the report stated. “Armed with the right information, Midwest farmers can, and will, mitigate some of these impacts through double- and triple-cropping, seed modification, crop switching and other adaptive practices.” Researchers predict that crop production might shift from the Midwest to the Upper

Great Plains, Northwest and Canada, which would keep the global food system supplied but put individual Midwest farmers at risk. Mike Doherty, Illinois Farm Bureau’s senior economist and policy analyst, pointed to a report published just last month that indicated corn yields “could decline,” while soybean yields would likely increase because of climate change. He noted the “2014 National Climate Assessment: U.S. Global Change Research Program” study was backed by 13 federal agencies and included researchers from the universities of Michigan, Michigan State, Indiana and Wisconsin. “Illinois farmers have been adapting continuously throughout history, including in response to changing weather patterns,” Doherty said. “As we say around here, ‘if you don’t like the weather, don’t worry –- it’ll change.’ “Illinois farmers and the companies that provide the research and development into new seed traits have seen a consistent increase in the yields of both corn and soybeans over time,” he said. See Climate, page 5

Agricultural watersheds benefit from EPA grants

BY KAY SHIPMAN FarmWeek

Periodicals: Time Valued

A lesser known federal grant helps watersheds, including agricultural ones, install practices to improve water quality, Farm Bureau leaders learned last week. U.S. Environmental Protection Agency (EPA) funds and Illinois EPA administers non-

point source pollution grants, frequently referred to as Section 319 grants. Among other issues last week, Illinois Farm Bureau’s Local and State Government Strength with Advisory Team (SWAT) discussed funding for Soil and Water Conservation District (SWCD) work. “There’s a tool to be used for agriculture,” said Team Chairman Mark Tuttle of DeKalb County Farm Bureau. “Here’s a good thing Mark Tuttle EPA is doing for agriculture.” In Illinois, $3.4 million will be distributed via Section 319 grants. Essentially, Section 319 grants fund watershed planning and implementation of approved plans that focus on

water quality. EPA now requires watershed plans to be in place and for those plans to meet U.S. EPA guidance before Section 319 grants are received. Efforts funded by Section 319 grants remain strictly voluntary and are prioritized by local entities involved with the watershed plan and work. For example, within an agricultural watershed, a watershed planning group might determine soil erosion impairs water and specific locations for filter strips along two tributary creeks would result in the biggest improvement. Within its Section 319 application, the group assigned the local SWCD to work with landowners along the creeks. An urban watershed group

FarmWeek on the web: FarmWeekNow.com

dealing with runoff might assign a city to install practices. In Illinois, some ag projects funded with Section 319 grants also leveraged farm bill program funding and reduced landowners’ costs to implement practices. The deadline for Section 319 applications is Aug. 1.

Entities considering applying for Section 319 grants should first determine if a watershed plan exists and if it meets EPA guidance. EPA plan approval may take four to six weeks. For more information, contact Illinois EPA’s bureau of water at {epa.state.il.us/ water/}.

Ag watersheds, Section 319 grants Federal funds administered by the Illinois Environmental Protection Agency as Section 319 grants help landowners and others in watersheds around Illinois. Agriculture-related projects include: • Lake Springfield Watershed in Sangamon County received a Section 319 grant to implement agricultural and urban best management practices throughout the watershed. Goals include reducing nonpoint source pollution, controlling soil erosion and reducing the amount of sediment and nutrients entering the lake. • Indian Creek Watershed in Livingston County received a Section 319 grant to show how conservation practices installed on Indian Creek watershed farms will improve water quality. Another Section 319 grant is tackling more urban issues, including stormwater runoff and urban soil erosion in Lake County’s Indian Creek Watershed. — Kay Shipman Illinois Farm Bureau on the web: www.ilfb.org ®


Quick Takes

FarmWeek Page 2 Monday, June 30, 2014

MORE OPPOSITION TO ‘WATERS OF U.S.’ PROPOSAL — Members of Congress last week continued to hear testimony against a proposed rule that opponents say would increase federal jurisdiction over water. A subcommittee of the House Committee on Natural Resources held a hearing titled “New Federal Schemes to Soak Up Water Authority: Impacts on States, Water Users, Recreation and Jobs.” The hearing focused on two proposals, including the Environmental Protection Agency’s (EPA) and Army Corps of Engineer’s proposed rule defining “waters of the United States.” The other proposal, initiated by the U.S. Forest Preserve, covers groundwater directives. Several subcommittee members were upset that representatives of the U.S Forest Service and U.S. Bureau of Reclamation only submitted written comments and didn’t attend the hearing to answer questions. Several members also urged EPA and the Corps to withdraw the proposed rule.

CONGRESSMAN SAYS IMMIGRATION PROGRESS UP TO OBAMA — Illinois Congressman Luis Gutierrez, D-Chicago, blasted Republicans on the House floor last week for having “no answer” to immigration reform. “Republicans have failed America and failed themselves,” he said. “It is now up to the president to act.” Gutierrez serves on the Judiciary Committee and the Subcommittee on Immigration and Border Security, and chairs the Immigration Task Force of the Congressional Hispanic Caucus. Using soccer analogies, Gutierrez said he gave Republicans a yellow card three months ago, putting them on notice to act on immigration. Last week, he issued a red card. “You’re done. Leave the field,” he said. “Too many flagrant offenses and unfair attacks, and too little action while you run out the clock. You are out. Hit the showers. I’m giving you the red card.”

ILLINOIS LIGHTNING CLAIMS FIZZLE — Homeowner claims reported in Illinois as a result of damage caused by lightning strikes continue to decline. According to analysis by COUNTRY Financial, Illinois’ No. 2 homeowner insurance provider, Illinois homeowners filed 35.5 percent fewer homeowner claims last year compared to 2009. Lightning strikes to buildings accounted for the majority of reported claims. “Electric service providers and home improvement television shows have made people more aware of newer and more affordable whole house surge protection options,” said Eric Vanasdale, COUNTRY senior loss control representative. COUNTRY encourages homeowners to take extra precautions to help prevent future property losses, including plug-in surge protectors on high-value electrical items. Unplug expensive electronic equipment when storms approach.

(ISSN0197-6680) Vol. 42 No. 26 June 30, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2014 Illinois Agricultural Association

STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

AROUND THE STATE

Taking flight

Precision Aerial Ag Show July 9-10

Top, an unmanned aerial vehicle (UAV) lands on top of a tractor cab during spring planting. Farmers are finding more and more uses for UAVs and using them as a key crop scouting tool. Above, a UAV captures an image of a spring field application. (Photos courtesy of Chad Colby, AgTechTalk)

BY DANIEL GRANT FarmWeek There will be a buzz in the air, literally, when professionals demonstrate some of the newest precision ag equipment next month in Decatur. The Precision Aerial Ag Show, powered by Farm Industry News and Farm Progress Events, will be held July 9-10 at Progress City USA in Decatur. Companies exhibiting precision aerial ag technology at the show include Ag Eagle, SenseFly, Horizon Precision, MLB, Trimble and Precision Drone. “There will be a lot of products (show attendees) can see,” said Chad Colby, an ag consultant. “Farmers will be able to understand the place to start with this” aerial ag technology. Precision aerial ag technology interests more farmers each day as an affordable and efficient way to scout fields and improve crop protection, nitrogen distribution and improve crop yields through the use of unmanned aerial vehicles (UAVs).

Colby likens the technological revolution of UAVs to the introduction of Apple’s iPad, which effectively launched the tablet market in 2010. “I relate (the launch of UAVs) to an iPad, which just turned 4 years old in April. Nobody had any idea it (the iPad) would be that big, but it’s already sold over 200 million units,” he said. “This (UAV phenomenon) is going to be a big deal as well.” Why do more and more farmers launch UAVs, or drones, each day? Farmers, for a reasonable investment, can scout an 80-acre field in minutes and isolate any potential problem areas with the use of digital imagery or sensors. “You have two (key uses) with UAVs. You have general crop scouting, which provides an efficient use of a farmer’s time,” Colby said. “Or you can carry various sensors and look for specific things such as insect infestation, drought or nitrogen deficiency.”

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Go to FarmWeekNow.com to learn more about the upcoming Precision Aerial Ag Show in Decatur.

A nice scouting ship costs about $4,000 and provides farmers with a variety of crop scouting options. “The cost is not terribly expensive,” Colby said. “And you can do a lot of things (with a UAV).” The Federal Aviation Administration has yet to determine all regulations for UAVs. Industry experts at the show will provide an update on regulatory issues along with all the latest technological developments. Ticket information and advanced ticket sales for the Precision Aerial Ag Show are online at {paas2014.com}. More information about UAVs also can be found at Colby’s website {AgTechTalk.com} or follow Colby on Twitter at {twitter.com/TheChadColby}.

Spradlin named new GROWMARK CEO

Jim Spradlin of Morton has been named chief executive officer of GROWMARK Inc., effective September 16. He succeeds Jeff Solberg, who will retire in September. Spradlin graduated from Illinois College at Jacksonville in 1982 with a business administration and economics degree. He has held various positions within the GROWMARK System, including controller of Jim Spradlin Schuyler-Brown FS, regional administrative director, general manager of Piatt Service Company and general manager of AgLand FS. Spradlin further served as region manager

(Central Illinois), energy division manager, agronomy division manager and vice president of agronomy for GROWMARK. He serves as one of five members of the Purdue University Center for Commercial Agriculture’s Industry Advisory Council. He also sits on the board of directors for The Fertilizer Institute. “Jim has the skills, knowledge, experience and support to successfully lead GROWMARK into the future. The board has great confidence in him and his ability to lead the multitude of talented employees throughout the GROWMARK System,” said John Reifsteck, GROWMARK board chairman and president. Spradlin said he feels honored to have the board’s support as they work together to guide the GROWMARK System.


PRODUCTION

Page 3 Monday, June 30, 2014 FarmWeek

One-fifth of wheat crop in the bin; issues with DON arise BY DANIEL GRANT FarmWeek

Farmers in southern portions of Illinois made significant progress with winter wheat harvest in recent weeks. USDA’s National Agricultural Statistics Service Illinois field office reported 20 percent of the wheat crop was harvested as of the first of last week. That’s twice the pace of last year when just 10 percent of wheat was cut as of the same date. “We got it (wheat harvest) done Monday (June 23) afternoon,” Pervis Ellis, a wheat grower from Harrisburg (Saline County) told FarmWeek. A slow transition from winter to spring slowed crop development in previous months and recent rains hindered fieldwork this month. But many farmers south of Interstate 70 took advantage of warmer, drier conditions in recent weeks and harvested

wheat and planted double-crop soybeans. “We are almost 50 percent done,” Danny Brewer, a wheat grower from Baldwin (Randolph County) said last week. “We always start a little early and dry it all. This year, we started (June 18), about a week later than usual.” Brewer and Ellis reported wheat yields, for a second year in a row, tipped the 100-bushel mark at some locations. Test weights generally have been good as well (56 to 60plus pounds per bushel), although there were some reports of low test weights (low 50s) that prompted a discount at elevators. “Yields are exceeding expectations,” said Brewer, who noted yields thus far range from 90 to 100 bushels per acre. Ellis reported the yield monitor on his combine showed yields ranging from 75 to 115 bushels per acre.

“We went in with pretty high expectations and, for the most part, they were met,” he said. The main issues at this point are findings of mycotoxin deoxynivalenol (DON, or vomitoxin) and scab. Some wheat growers incurred severe penalties for vomitoxin in some loads at elevators, while other loads weren’t an issue. “It (DON) is pretty prevalent in this area,” Ellis said. “We’re losing some serious

money here fast.” Ellis reported discounts for DON in his area begin at 10 cents per bushel for anything between 2.1 and 3 parts per million, 20 cents per bushel for loads with 3.1 to 4 parts per million on up to $1.20 per bushel for anything above 8 parts per million. Ellis reported some loads of wheat were docked more than $3 per bushel, or $1,000plus per load, for a combination of vomitoxin, moisture or low test weights.

Meanwhile, reports of scab have been patchy. Affected wheat heads generally appear bleached in color, according to Carl Bradley, University of Illinois plant pathologist. “Differences in scab incidence from field to field likely are due to differences in susceptibility of varieties planted, application or no application of fungicides and local weather,” Bradley said. “Growers with moderate to high levels of scab should consider making adjustments to their combine that would allow low test weight, scabby kernels to be blown out the back,” he added. Research from Ohio State University indicates adjusting the combine’s fan speed between 1,375 to 1,475 RPMs and shutter opening to 90 mm (3.5 inches) results in the lowest discounts at elevators for low test weight, percent of damaged kernels and level of DON in the grain.

Crop conditions off to the races; acreage expected to grow

were only five years with better condiSteady rains in recent weeks and tions for corn (as of June 23),” he conmostly moderate temperatures did wonders for much of the corn and soy- tinued. “For soybeans, this is the best rating (on record for the last week of bean crops. USDA last week pegged crop condi- June).” Concerns about excess moisture in the tion ratings at 74 percent good to excellent, 21 percent fair and 5 percent poor northern Corn Belt could subside in coming weeks due to a foreto very poor for corn, cast of drier conditions, and 72 percent good to FarmWeekNow.com according to Nelson. excellent, 23 percent fair Go to FarmWeekNow.com for Elsewhere, dryness and 5 percent poor to complete details of the planted issues in parts of the very poor for beans. acres and hog inventory reports. western Corn Belt into The conditions were western Illinois early in a vast improvement from the season either were washed away by the same time a year ago when just 65 rain or overshadowed by excellent percent of corn and beans were rated growing conditions elsewhere. good to excellent. “The trade feels as long as the rain “We’re still looking at phenomenal crops (thus far),” Rich Nelson, Allendale hits the central areas (of the Corn Belt) it offsets any concerns” in other areas, Inc. chief strategist, told FarmWeek. Nelson said. “These (USDA) crop ratings have In Illinois, 78 percent of corn and been going on for 29 years, and there

USDA’s March estimate of 91.696 mil72 percent of the bean crop last week lion) and 83.204 million acres for beans rated good to excellent. (up from the March Illinois farmers as of estimate of 81.493 milthe first of last week lion). planted 96 percent of ‘We’re still lookIf realized, U.S. soythe bean crop, three bean plantings would points ahead of the ing at phenomebe the largest on five-year average. n a l c r o p s ( t h u s record. Corn acres Allendale Inc. last far).’ would be the fourth week projected USDA’s largest amount planted planted acres estimates in modern times. will grow by 385,000 — Rich Nelson The stellar outlook acres for corn and by Chief strategist for U.S. crop produc1.711 million acres for Allendale Inc. tion at this time likely beans since the March will pressure prices. prospective plantings Allendale, however, survey. USDA today releases its latest plant- projected quarterly soybean stocks could slip 24 percent from a year ago, which ed acreage and quarterly grain stocks could benefit old-crop bean prices as estimates. Allendale projected acres could total demand could be rationed due to tight bean supplies. — Daniel Grant 92.081 million for corn (up from

Strong storm clips crops south of Kankakee

Storm systems last week provided beneficial rain in most parts of Illinois. Much of the state through the middle of last week received a half to 2-plus inches of rain with chances for more thunderstorms Friday and Saturday. Statewide, topsoil moisture the first of last week was rated 77 percent adequate and 18 percent surplus with just 5 percent short. However, some isolated pockets of the state were slammed last week by storms that dumped up to 5 inches of rain and crop-damaging hail accompanied by strong winds. Steve Worthington, crop claims supervisor for COUNTRY Financial, reported about 300 damage claims around the state last week. About 100 of those claims were the result of a hailstorm that clipped Ford and Iroquois counties and moved past Kankakee before continuing into Indiana. “It brought a lot of rain — we had 4 to 4.5 inches — 60 mph winds and some areas saw some really bad hail,” said Jared Finegan, a

Ford-Iroquois Farm Bureau member from Ashkum and chairman of the IFB State Young Leader Committee. “There was crop and some building damage.” Golf ball-sized hail caused extensive damage to some corn and soybean fields. “We have a lot of defoliation and green snap. We’ll battle that all season,” Finegan said. “Corn that was a foot or a foot and a half tall in some cases was all the way beat to the ground or broke off.” COUNTRY set up a claims center at the Ford-Iroquois Farm Bureau building. Adjusters will process each claim individually, Worthington noted. “We have adjusters in the field doing preinspections to determine the number of acres damaged and the state of the crop,” he said. “The cases and coverage varies. Damage was very severe to light.”

Rita Frazer, RFD Radio Network® anchor, contributed to this report.

IDOA offering organic farmers cost-share funds through Nov. 1

The Illinois Department of Agriculture (IDOA) will distribute $271,800 to reimburse organic farmers and handlers who obtain or renew their organic certification in the federal fiscal year that ends Sept. 30. Individuals may be reimbursed for 75 percent of certification costs up to $750. Illinois Agriculture Director Bob Flider noted funding is available “on a first-come, firstserved basis, so I encourage those interested to contact us as soon as possible.” Entities operating in more than one state should apply in the state where their federal tax returns are filed. Farmers may apply for reimbursement even if they have received payments through the USDA National

Organic Certification CostShare Program previously; however, they may only apply once per certificate or certification category per year. Eligible farms must possess current USDA organic certification either by receiving an initial USDA organic certification from a USDA-accredited certifying agent or incurred expenses related to that renewal between Oct. 1, 2013 and Sept. 30. Those with suspended or revoked certification are ineligible. Applications will be accepted through Nov. 1. Forms and details may be obtained by calling IDOA’s Bureau of Marketing, Promotion and Grants at 217-524-9129 or visiting {agr.state.il.us}.


EDUCATION

FarmWeek Page 4 Monday, June 30, 2014

New director building on agriculture’s status at WIU BY KAY SHIPMAN FarmWeek

Western Illinois University (WIU) agriculture finds itself stepping forward, not only on the Macomb campus, but across Illinois and other Midwestern states. The School of Agriculture’s new director views those steps as an exciting journey. Andrew “Andy” Baker, an agriculture education professor, last week was named director after serving as interim director for a year. The school continues to build upon its recent status after being named a WIU signature program based on the quality of ag graduates. Relevancy remains the ag school’s cornerstone, according to Baker. “When I talk to students, that’s one of the most important things. ‘What will

happen to me after I graduate?’” he told FarmWeek. Baker praised ag faculty for helping the school remain relevant by embracing new technology and performing cuttingedge work. Evidence of that work — new greenhouses — starts with construction on the university farm this month and will be operational this fall. The $490,000 greenhouses, which Baker described as the first phase of a greenhouse complex, resulted from agriculture’s signature status on campus. In addition to instructional space, the greenhouses offer expanded prospects for plant breeding, study and unique opportunities for agriculture. “This will be a tremendous asset for what we will be able to do,” Baker said. “A lot of people don’t see us as a research

institution, but we have a lot of neat stuff going on.” He illustrated his point by pointing out the school’s urban forestry program and sustainable agriculture program that includes breeding and study of pennycress and other alternative crops. Within animal science, faculty and students are exploring electronic livestock merchandising, including the use of Facebook for sales. The recent average sale price of $425 for lambs exceeded the $400 goal, he added. Looking to the future, Baker acknowledged the school’s goal of 400 students by 2015 remains within reach despite a shrinking pool of high school graduates. Over the last six to seven years, WIU enrollment decreased across campus, while the ag school registered increases and enrolled 366 students last fall. Baker plans to strengthen outreach to WIU alumni and build on a new tradition of alumni events during the Ag Mech Club’s Farm Expo scheduled for Feb. 7.

Get to know Andy Baker Job: Director Western Illinois University School of Agriculture Age: 50 Background: WIU faculty member in teacher education since 1999, previously taught at Murray State University and University of Missouri-Columbia Andy Baker Education: Earned bachelor’s and master’s degrees and doctorate in agricultural education from University of Missouri-Columbia Greatest compliment: Former students who went on to earn doctorates in agricultural education and became teacher educators

His goals include expanded offerings for students, including agricultural communications as a major or a minor. “More companies are desiring those students,” Baker said. WIU ag’s future also will be shaped by several upcoming faculty retirements. “We can refine who we are through retirements and enhance who we are today and what we want to be,” Baker said. “We’re at the turning point to

redefine where we are.” A long-time agriculture teacher educator, Baker said no decision had been made about his teaching position and whether he will teach, although he plans to attend and recruit students at the National FFA Convention and other events. “I still feel in my heart of hearts that’s who I am,” Baker said of his ag teacher background. “I’m not giving that up totally.”

DISCOVERING THE NATION’S CAPITAL

Top, FFA member Bailey DeMichele reads some of the 58,000 names of Americans who gave their lives to serve their country at the Vietnam Veterans Memorial. Bottom, 61 Illinois FFA and 4-H members pose in front of the White House last week. The stop represented one of many on the annual Illinois Farm Bureau and Affiliates Youth to Washington Tour. (Photos by Jenny Jackson, IFB youth ambassador)


ROUNDTABLE

Page 5 Monday, June 30, 2014 FarmWeek

GMOs focus of IFB Agri-Business Roundtable

food industry faces today, he said. The food industry needs to Formed in 2007, The Center build trust with consumers for Food Integrity strives to through shared values — not build consumer trust and confacts and statistics, according fidence in the food system. to Terry Fleck of The Center The key consumer question for Food Integrity. the center receives: Are foods “They’re not interested in made with genetically modified your facts. organisms They’re inter(GMOs) safe? ested in your “Bottom line: ‘What we’re values,” Food safety is Fleck, execualways going to dealing with tive director, be, for today’s today is a social said during consumer, the question, not a last week’s overarching criteIllinois Farm science question.’ ria on whether Bureau Agrithey are going to — Terry Fleck decide what they Business Roundtable in The Center for Food Integrity purchase or what Bloomington. they don’t,” he An August said. 2013 poll by “And it’s based the center off a feeling and a found that 34 percent of conbelief when it comes to safety. sumers believe the food system What we’re dealing with is a was headed in the right direcsocial question, not a science tion. Thirty-eight percent said question.” the food industry was on the He said the food industry wrong track and 28 percent must engage consumers, said they were unsure. explain what GMOs are — and Women, Fleck said, typically what they aren’t. He also said get more nervous about transparency isn’t an option. today’s food than men. The center researched what Fleck also recalled a speaker issues could spark “social at a recent conference, who outrage.” ended his speech with: “I’m 28 Fleck pointed to Donald years old and I trust no one.” Sterling as an example of That’s the skepticism the “social outrage.” Sterling was BY DEANA STROISCH FarmWeek

Climate

Continued from page 1 “In fact, farmers in Illinois today are routinely producing corn crops that are double in size and with less environmental impact than their parents were able to produce on the same land.” The risky business report focused on the economic impacts that climate change would have on the United States from today to the year 2100. The report also predicted: • Large-scale loss of coastal property and infrastructure. By 2015, the report says, between $66 billion and $106 billion worth of existing coastal property nationwide will likely be below sea level. By 2100, between $238 billion to $507 billion worth of property could be below sea level. • Extreme heat across the country, especially in the Southwest, Southeast and upper Midwest. With no changes, the average Midwest resident could experience an additional seven to 26 days above 95 degrees each year by mid-century. The report also predicted labor productivity of outdoor workers will decline as a result — by as much as 3 percent in some parts

of the country. “Our findings show that, if we continue on our current path, many regions of the U.S. face the prospect of serious economic effects from climate change,” according to the report. “However, if we choose a different path — if we act aggressively to both adapt to the changing climate and to mitigate future impacts by reducing carbon emissions — we can significantly reduce our exposure to the worst economic risks from climate change, and also demonstrate global leadership on climate.” Doherty said that farmers and agribusinesses take climate change seriously. “Thankfully, change is something farmers and agribusinesses excel at,” Doherty said. “The long-term trend would predict that farming practices will continue to evolve with the times, will mitigate crop production risk, and most likely, will produce more with less, as farmers have been doing all along.”

banned from the National Basketball Association and fined after private recordings of him making racist com-

ments became public. The center’s research found the top three issues that could spark social out-

rage include affordability of food, affordability of healthy food and food safety — not GMOs.

of individual products. She said 120 labeling laws have been proposed in 41 states over the past 20 years. Ballot initiates remain pending in three states: Arizona, Colorado and Oregon. GMA recently filed a lawsuit challenging Vermont’s GMO labeling law, which requires manufacturers to label foods with GMOs starting in 2016. Another solution to the debate over mandatory labeling may rest with Congress. She pointed to HR 4432, a bipartisan bill that would give the Food and Drug Administration the sole authority to require labeling of foods if they are found to be unsafe or “materi-

ally different” from foods produced without GMOs. The bill also would prohibit individual states and any local government from passing mandatory labeling rules. Johnson said the first committee hearings on the bill could occur in the next few weeks. Illinois Farm Bureau, American Farm Bureau Federation, American Soybean Association and National Corn Growers Association members support HR 4432. She encouraged people to talk to their friends, neighbors and legislators about GMOs and the consequences of mandatory labeling. — Deana Stroisch

Association fighting GMO labeling laws Requiring labels on products made with genetically modified organisms (GMOs) perpetuates the spread of misinformation, according to Kelsey Johnson of the Grocery Manufacturers Association (GMA). “By labeling GMOs, we are giving people information that does not reflect the health or safety of the food they are eating, and continuing the spread of false information intended to scare people into believing their food is somehow unsafe or unhealthy,” said Johnson, director of state affairs. Requiring GMO labeling also would increase costs, decrease production capacity and potentially require testing


FarmWeek Page 6 Monday, June 30, 2014 Bernie Walsh, Durand, Winnebago County: Rain in northern Illinois was spotty last week. It rained 2 inches in the southeast corner of the county, while we got less than .1 of an inch. Fieldwork has resumed where it has been dry enough. There has been some hay put up and some of that is still the first cutting. Almost all of the corn is too tall to spray. Soybean spraying is currently under way. Wheat harvest is still two weeks away in our area. Have a great Fourth of July holiday. Pete Tekampe, Grayslake, Lake County: Another damp week in Lake County. We had a little more than 1 inch of rain Saturday (June 21) in about 30 minutes. It was cool and misty most of the rest of the week. I cut 5 acres of hay early Thursday afternoon. Not much hay has been cut and baled yet. A chance of rain is forecast for six of the next seven days. Not a good outlook for hay making. Early-planted corn is shoulder high with the rest over knee high. Even the replanted corn has made it and looking good. Beans are yellowing because of wet feet. Hopefully, they are wrong about the rain, and we can get warmer weather. Leroy Getz, Savanna, Carroll County: Rain since last report of 1 inch brings June’s total to 9.6 inches. The Mississippi River is over flood stage and still rising from all the rain from Minnesota coming down. Not much crop land has been flooded. Crops that were flattened by the flash flood rain have lifted, but corn is damaged. All of the rain and heat has the fields very dark green and growing fast. Corn is up to 72 inches tall and beans from 15 to 18 inches. The hay I mowed before the big rain was baled eight days later. There is still lots of first-crop hay yet to make. Wheat and rye fields are changing colors, and oats are fully headed out. No disease problems are showing. The biggest pest problem right now is buffalo gnats. Our prayers go out to the Endress family following Lynden’s accidental electrocution. A young farmer gone way too soon. Ryan Frieders, Waterman, DeKalb County: The crops have been growing a lot in the past week. The corn is over waist high and growing rapidly. The soybeans are also progressing. Oats planted in the area are maturing and will need to be combined soon. Roadsides are being mowed and equipment is being cleaned up after spring use. Ken Reinhardt, Seaton, Mercer County: There was quite a bit of rain early in the week. Amounts ranged from just under 1 inch to more than 4 inches up in Rock Island County in one spot. There is some urea being flown on corn now, but it won’t be long until fungicide treatments begin after tasseling. My wife reported three Japanese beetles in the pool. Everyone hoped the deep frost had taken care of them. Ron Moore, Roseville, Warren County: We received another 2.3 inches of rain last week. After below-normal rainfall in May, we have had above-normal rainfall for June. We have had more than 7 inches so far and more is forecast for this week. The corn will start tasseling this week, and the soybeans will close the rows. There should be some second cutting of hay done this week as well. No insect pressure to report yet. We will keep scouting. The pasture cattle seem to be content; they haven’t wandered to the neighbors so far this summer. Tim Green, Wyoming, Stark County: Some bean spraying was being done towards the end of last week, but it was a wet start to the week. Corn is really growing fast and beans are starting to improve. Beans don’t look as good out in the field as they do from the road. We are starting to get enough water that it is starting to affect the beans. They have some yellow spots and aren’t getting that nice, deep color yet. The growth post south of Wyoming is up to a little bit over 7 feet high. Corn is growing well. I bet the corn will be tasseled by the Fourth of July. Be safe.

Mark Kerber, Chatsworth, Livingston County: Ideal growing conditions so far have accelerated growth of this crop, especially corn. Spraying post herbicides on soybeans is the main activity after the ground has dried. Rains have been light and frequent lately, although scattered downpours with damaging hail flooded some areas east and north of here. County fairs are starting as summer is officially here. Can you believe the days are getting shorter already? The hay business has been tough to get done with showers and humid weather hurting the crop after being cut. Some fields haven’t even been cut yet. Markets are holding steady waiting for this week’s report. Ron Haase, Gilman, Iroquois County: The big news in our area was the storm that went through Iroquois County June 21. The storm left thousands of acres of hail damage to the crops and property damage due to the strong winds. We were able to finish up our post-emergence herbicide application in our cornfields Thursday. Now we need to spray our soybean fields to kill the weeds that are up. Spraying has been tough to get done due to the frequent showers the past few weeks. Rain fell on June 20, 21, 24 and 25. We received a range of .7 of an inch up to 1.25 inches of rain. The range in corn development is anywhere from the V4 growth stage up to the V12 growth stage with most of the corn being between V7 and V11. The range in soybean development is between the V3 and R1 growth stages. Some soybean fields have begun flowering. The local closing prices for June 26 were nearby corn, $4.24; new-crop corn, $4.09; nearby soybeans, $14.47; new-crop soybeans, $12.13. Brian Schaumburg, Chenoa, McLean County: I may be running out of superlatives to describe this crop as yet another week goes by without an appreciable drop in crop condition ratings. June will end with just about 1 inch above average rainfall and GDU’s just above average. Corn is almost to VT as the flag leaf is showing. Aerial applications of fungicide will begin soon. Some soybeans are over knee high. For the uninitiated, this is corn growing weather! Corn, $4.31, $4.19 new; soybeans, $14.37, $12.08 new; wheat, $5.42. Steve Ayers, Champaign, Champaign County: Our hot, humid tropical paradise continued this week with occasional monsoonal rains. Bean spraying finished last Saturday (June 21). Last weekend, we received .9 of an inch, Monday rain total was 2.17 and Tuesday was .07 for a total of 3.14 inches. Cells of heavy rainfall dropped up to 4 to 5 inches in some areas Sunday into Monday. The Champaign News Gazette summarized June quite well on June 25 under the title of “It’s Been a Wet Month”: 6.93. Average total rainfall in Champaign for June — 6.27. Field ponds have created several wavy fields, but overall things are looking good. Enjoy the Fourth of July festivities and let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Hello again from western Illinois where it has been raining almost every other day and crops are showing their appreciation by growing. Sprayers have been trying to get caught up as the weeds seem to like the abundance of water, too. Our gauge collected about .3 of an inch of rain since last report, but one day the rain came so hard I think most just blew across the top. Corn could use some drying out of topsoils, while subsoils remain dry. Soybeans also need some drying days. Hay machines are running, trying to beat the next rain event. It would not be Fourth of July weekend if combines were not giving wheat fields a test run. Have a safe week wherever you are.

Carrie Winkelmann, Tallula, Menard County:` Here is the crop update from my husband Kyle, while I am off in Pennsylvania at the National Ag In The Classroom Conference. I got to tour a mushroom farm yesterday that was amazing! Back to Kyle’s report ... A few tassels can be found if you look hard. Probably have enough moisture to get through pollination. Soybeans are enjoying drier weather and sunlight. Crops look really good. Tom Ritter, Blue Mound, Macon County: Just after filing my last report, we had a pretty general inch of rain throughout the area. That was followed early last week with major rain dumping 3 to 5 inches in southern Macon County. We are very saturated, but the rain has not done a lot of damage at this point. Needless to say, moisture levels are very adequate, if not a surplus. Corn continues to have excellent color and more than head high at the moment. We will see tassels emerge this week. Soybeans in 30-inch rows almost have the rows closed and have good growth and color. Crop conditions for both corn and beans would have to be rated pretty well in this area. There have been no field activities because of the rain other than mowing of the roads. Farmers are basically trying to get in some vacation and work on some equipment in preparation for the fall. Todd Easton, Charleston, Coles County: It has been another good week in the fields across Coles County as crops grow quickly in ideal conditions. Spotty rains entered the area giving different parts of the county amounts on either side of the 1-inch mark. Cornfields have been a very healthy green all over for a couple of weeks now. With the rain, it grew over another foot in the last week to more than head high. Soybean fields are closing in their rows and mostly looking very healthy and clean. Wheat fields have also turned and some harvest has begun in very good time to get double-crop soybeans in the ground. Doug Uphoff, Shelbyville, Shelby County: We had .8 of an inch here. The Bethany and Lovington areas had 3 inches and Moweaqua blacktop area had 5.1 inches. It was a week of despair and heartache, too. We lost both Dennis Ross and Chuck Mulvaney very suddenly this week to heart attacks. Both men in their mid-50s. Dennis was a lender and an insurance agent for People’s Bank in Pana. Chuck was a applicator for CPS. He had been a crop applicator for many years, as Dennis had been in the lending business for many years. It was because of Dennis that I live on the farm I do today. On a lighter note, I had an orphan lamb and gave it to my friend, Mary Becker. As soon as she took it home, it saw a Great Pyrenees dog that was nursing pups. The lamb proceeded to go over, latch on and treat it as its mother by nursing from the dog. The dog let it and continues to nurse the lamb!! They are thinking of weaning the pups so the dog has more milk. Mary is also bottle feeding the lamb. She took it camping with her and her grandkids last week. She was pretty sure she was the only one there with a pet lamb. Have a good week and be safe out there. David Schaal, St. Peter, Fayette County: Showers came across the area Monday morning and dropped .45 of an inch of rain in my gauge. Since then, it has been warm and humid. Wheat harvest took place since last report. Yields have been ranging from mid-50s to the upper 80s. Other issues were some light test weights and high vomitoxin numbers, which resulted in discounts at the elevator. Wheat that had fungicide applied to it seemed to have better results. Not a lot of wheat in the area, so it is pretty well all harvested. Corn and soybeans still looking pretty good in the area. With rain in the forecast, we keep watching for more to come. We are not hurting for moisture, but don’t want it to quit. Have a good week. Jeff Guilander, Jerseyville, Jersey County: It is not yet July and the talk is all about fungicide. That speaks to the pace that this crop is coming along. The earliest corn is just starting pollination with the rest only lagging a few days behind. Soybeans are filling in the rows nicely and with spraying finishing up, this year’s crop is almost on its own. Some wheat is being tested with harvest expected to begin this week. Overall, one of the faster growing seasons we have had in a long time.


Page 7 Monday, June 30, 2014 FarmWeek Dan Meinhart, Montrose, Jasper County: It has been a very hot and humid week. Rain was in the area Monday (June 23) and Tuesday. Amounts of rain varied from .5 of an inch to 2.5 inches. Planting and replanting resumed ahead of the rains. A lot of post spraying and sidedressing took place. Fieldwork and wheat harvest resumed Wednesday, and by Thursday wheat harvest was in full swing. There are reports of good yields with a lot of diseases due to extreme wet weather and the inability to apply fungicide in a timely manner at flowering time. Showers are in the forecast every day for the foreseeable future. Dave Hankammer, Millstadt, St. Clair County: It just wouldn’t be wheat harvest without a daily threat of rain. This past week, we had isolated rain showers move through the area. I collected .8 of an inch from several small rains during the week. It was enough to stop harvest. Dry down of the grain has been slow due to the humidity. The daytime temps have reached the 90degree mark, providing some dry time for combining before a stray shower would pass in the late afternoon. Grain quality has remained good despite the frequent showers. Double-cropped soybeans will be planted as soon as the wheat has been harvested. The early-planted corn has started to extend its tassel as it flourishes under the ideal weather. Most soybean fields have been sprayed with a post herbicide for weeds. Local grain bids are corn, $4.48; soybeans, $14.48; wheat, $5.61. Have a safe Fourth of July holiday.

Kevin Raber, Browns, Wabash County: Scattered showers were prevalent last week. Some areas got good rainfall while other areas received little or none. The early-planted corn has begun to tassel. Beans look good. Many bean fields are getting close to canopy. Wheat harvest has progressed slowly around the scattered showers. This wheat crop has been so varied in yield, quality and amount of vomitoxin. It’s hard to describe it. I’ve had some good wheat, but I’ve also had fields that were bad in every area that can be checked. Wheat might be hard to find in this part of the country next year. Randy Anderson, Galatia, Saline County: The crop is starting to turn around, but it’s still struggling in some of the wet areas. Started cutting wheat last Monday (June 23). It’s in the OK to fair category, but between the test weights and vomitoxin, the dock can be high. For example, you might have $6 wheat, but by the time you get all the discounts on it, you might get $3.50. Beans are looking good as they are liking the heat that we got last week. There are a few fields of corn starting to tassel. Have a great Fourth of July. Be safe if you have some fireworks and keep those grills a cooking.

Rick Corners, Centralia, Jefferson County: Two and a half inches of rain this week, and you could imagine what has happened to the quality of the wheat still in the fields. There is a lot of it still in the field. I’m not even going to talk about the docks on the wheat or I’ll start using four-letter words of which scam is the main one. The corn and beans just about get their tootsies dried out and start to look better when another deluge comes. Dean Shields, Murphysboro, Jackson County: I planted the last of my soybeans Sunday (June 22). Monday (June 23) it rained 3 inches, so I am not done. Some of the corn is tasseling now. The beans that were planted early are looking pretty good. Still a lot of wheat harvesting going on. The wheat has a lot of disease, and because of that, the discounts are large. I will start planting beans again when it dries out. Here is wishing for more sunshine. Be safe and take care. Ken Taake, Ullin, Pulaski County: It just continues to be extremely wet here in deep southern Illinois. Seems like we have showers every two to three days. We still have about 200 acres of soybeans to plant. I don’t know how much replanting we will have to do because of the wet weather. Wheat harvest is progressing between showers. The yields seem to be running in the 60s, but quality is a concern. There seems to be an awful lot of vomitoxin in the area, so discounts are quite heavy. Corn is looking better. It’s getting its roots down into the nitrogen and overcoming some of its wet feet. The color looks pretty good. Corn ranges anywhere from knee high for the replant up to some of the early corn that is starting to tassel. Please remember to be careful as we are still in this busy season.

Scout your fields and evaluate weed management systems Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.

With most corn being at the V8 stage or beyond, post application of herbicides is virtually complete. This is an excellent time to begin evaluating the effectiveness o f t h e we e d manag ement system you selected. Because you know your fields, identify Duane Roelfs those that have caused you problem weed concerns in the past. Scout those fields first. Are there any weed escapes? Also look for any signs of crop response to the herbicides that you

BY DUANE ROELFS

used. Then scout the remainder of your fields. Properly identify any weeds that have escaped. This is a critical step in your evaluation. For instance, differentiating between Palmer amaranth, tall waterhemp and redroot pigweed is very difficult at the seedling stage. Attempt to determine why there are weed escapes. If m a r e s t a i l i s t h e we e d t h a t escaped in a field that was tilled, for example, dig the weed. You will most likely find an extended stem buried in the soil. This was caused by the marestail slipping by the shovels of the tillage tool. This led to the herbicide rate being too low to control that plant because it

was actually larger and older than it appeared. In addition, a stressed plant is harder to control than a healthy, actively growing plant. There could also be insects boring in the stem of the weedy plants disrupting the movement of translocated herbicides within the plant. Was the correct herbicide used at the correct rate and at the correct time for the existing weed pressure? Determine a course of action. Can the weed escapes

still be controlled with an herbicide application keeping crop safety a priority? With a species s u ch a s Pa l m e r a m a r a n t h , should hand weeding be considered or should harvest practices be altered so that the weed seeds will not be carried to other areas of the field or other fields? Relating to crop response, take into account the environment for the crop after planting. Cool, wet conditions can lead to crop injury from herbi-

p r i o r i t i e s, f a r m l a n d , c r o p prices and much more.

nutrient stewards; and Greg Peterson, of the Peterson

technology issues, such as big data, drones and cyber-security, as well as our perennial outlooks,” said Mike Doherty, IFB senior economist. “Additionally, we have some hot topic workshops on nutrient management, global meat markets and value-added production.” Those wishing to attend the Commodities Conference can preregister until July 21 online at {www.ilfb.org/commoditiescon ference} or by contacting their local Farm Bureau. Registration materials also may be requested by calling Nicole Moore at 309-557-3343 or via email at nmoore@ ilfb.org. Registration costs $35 and includes lunch. Registra-

cides. We experienced those conditions frequently this spring. The environment is certainly not the only reason for a crop response, but it can lead to unexpected results. Follow a similar procedure as you evaluate your weed management system in your soybeans. Make sure you use this information to make any needed adjustments to next year’s decision. An invaluable resource is your FS crop specialist. Please call them with any questions as you go through this process. Duane Roelfs serves as GROWMARK’s agronomy business director. His email address is droelfs@growmark.com.

IFB to host annual Commodities Conference July 30 Farmers and ag professionals can learn about the current state of far ming and get a glimpse of the future next month at the Illinois Far m Bureau Commodities Conference. IFB will host the annual conference July 30 at the Normal Marriott Hotel and Conference Center. The event, with a theme of “Modern Agriculture: Connecting to the Digital Future,” will feature two general sessions and multiple breakout sessions focusing on digital communications and tools, f a r m p o l i c y, m a r k e t a n d weather trends, drone technology, trade and infrastructure

‘We will have the latest information on digital-driven technology issues, such as big data, drones and cyber-security, as well as our perennial outlooks.’ — Mike Doherty General sessions speakers will be Matt Bechdol, president of Geosilos, who will discuss big data; Lauren Lurkins, IFB director of natural and environmental resources, who will address Illinois farmers’ role as

IFB senior economist

Brothers Kansas farm and cocreator of popular YouTube parody videos, will discuss advocating for agriculture in the social media world. “We will have the latest information on digital-driven

tion the day of the event will begin at 7:30 a.m. at the Marriott. In addition to the conference, IFB will host a buffet reception July 29 at 6 p.m. at the Marriott. The reception includes a private screening of the “Farmland” documentary and discussion with invited guests. The film, from award-winning director James Moll, gives viewers a snapshot into the lives of young farmers. The buffet reception will be free to all county Farm Bureau managers, presidents and members. Registration for the special event can be completed online at {www.ilfb.org/commoditiescon ference/reception}.


AG EDUCATION

FarmWeek Page 8 Monday, June 30, 2014

Secrets to succession; Hanson focuses on family farms BY DANIEL GRANT FarmWeek

After nearly four decades, a land grant university financial planner continues to talk about something most farmers don’t want to talk about — farm succession. And for good reason. Ron

Hanson, farm management/ag finance/agribusiness program director at the University of Nebraska challenges farmers to not only consider what if the “what if ” happens, but to act on it and make a plan. Otherwise, farmers risk losing what took a lifetime or

TEACHING ABOUT AG

numerous generations to build in the blink of an eye. Hanson, an Illinois native, this month focused on preserving cattle farms in the Prairie State as he made two farm succession presentations at the Illinois Beef Association (IBA) summer confer-

Twenty-four teachers from Logan, Mason, Menard and Sangamon counties recently attended a four-day Summer Ag Institute sponsored by the county Farm Bureaus. Teachers spent one day in each county. The group witnessed pea harvest by Del Monte on the Friedrich Family Farm in southern Tazewell County. (Photo by Renee Deuth, Mason-Menard County Farm Bureau manager)

ence in Bettendorf, Iowa. The farm management expert grew up in Cambridge and earned an ag economics degree at Western Illinois University, and master’s and doctorate degrees in ag economics from the University of Illinois. He taught at Southern Illinois University before heading to Nebraska 41 years ago. Hanson began counseling farm families 38 years ago and noted one of the biggest obstacles to create a farm succession plan continues to revolve around starting the process. “One thing most farm families never want to discuss is what if the ‘what if ’ happens,” Hanson said. “Is there a succession plan in place? If something unexpected happens today, does everyone in the family know and understand what happens tomorrow?” Most IBA members at the summer conference admitted they don’t have formal succession plans in place. They estimated 5 percent of farmers have such plans. “Talking about family succession is difficult,” Hanson said. “But why work your whole life to build something and then risk losing it.” A succession plan represents much more than just drawing up a will. It involves estate planning, transition planning, financial management planning and retirement planning. The process can be time consuming and often involves dealing with tax and estate laws. Hanson urged farm families to overcome past obstacles or fears and begin the succession planning process. “It’s never too early to begin this process, but many times it’s too late,” he said. “Don’t wait until dad has a heart attack or grandma is 93,

in a nursing home, owns the entire farm and wakes up one day and can’t remember what she had for breakfast.” One reason for Hanson’s passion and brutal honesty on the subject of farm succession developed from the fact that he’s witnessed a Ron Hanson number of heartbreaking cases. Hanson recalled working with a teary-eyed veteran farmer who said his worst day on the farm was when he had to fire his son. He’s also witnessed a lot of ill will toward daughters-in-law. “Of all the families I worked with the worst (case) was in western Nebraska,” he said. “Five children were settling their mom and dad’s estate, and there were seven lawyers. After a three-year court battle, the kids lost it all.” The issue of farm succession also became trickier in recent years due to the rising value of farmland and commodities. “I’m seeing problems in my office today I never saw 10 years ago,” Hanson said. “In the 1980s and 90s, the attitude of nonfarming children usually was, if my sibling wants to stay on the farm. It’s theirs. “Nonfarming kids (in the past) walked off the farm and never looked back,” he continued. “Today, they’re looking back. They know what it’s worth and lawyers have gotten involved.” That’s why Hanson continues to urge farm families to begin succession plans, even as he plans his own retirement in the not too distant future.

Executive Director Illinois Council on Best Management Practices (CBMP) is an organization focused on education, outreach and collaborating on research regarding agricultural best management practices to improve Illinois water quality. The Executive Director will manage daily operations of CBMP and direct the development and implementation of effective and economically feasible agricultural best management practices. The position requires: % Bachelor’s degree % Five years of agricultural organization, environmental/natural resources, legislative/regulatory, or business experience. % Experience supervising staff, grant projects, financial documents, and budgets, and managing independent contractors. % Effective leadership to direct organizations and maintain positive working relationships among members and stakeholders while building consensus around policy issues. % Strong organizational and financial management skills. % Demonstrates ability to seek, write and administer grant proposals and other funding opportunities. The position requires a minimum of 50% daily travel throughout Illinois and occasional overnight travel. CBMP is headquartered in Bloomington but position may work remotely anywhere in central Illinois. Please send resume by July 14 to cholcomb@ilfb.org. IFB is not the employer for this position. IFB is one of the founding members of CBMP and currently holds a voting seat on the Board. IFB is represented on the CBMP Board by an IFB Board member, and IFB staff assists in the implementation of CBMP programs. PR280T4


FROM THE COUNTIES

Page 9 Monday, June 30, 2014 FarmWeek

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ARROLL — The Foundation will sponsor a farm shop tour from 1 to 6 p.m. July 26. Cost is $25. Call the Farm Bureau office at 244-3001 to purchase tickets by July 17. HRISTIAN — Farm Bureau will co-host a 2015 farmland assessment values seminar at 6 p.m. July 8 at Kreiger’s. Brenda Matherly, Illinois Farm Bureau, will speak. Call the Farm Bureau office at 824-2940 to register by Thursday. OOK — Farm Bureau members may purchase discounted tickets to a Chicago White Sox/Texas Rangers game at 7:10 p.m. Aug. 5 at U.S. Cellular Field. Visit {whitesox. com/fbn}, call Ticketmaster at 866-769-4263 and use the code “CCFB” or fax 312-674-5140 for tickets. Service fees will apply. For more information, visit {cookcfb.org}. ENRY — Farm Bureau will sponsor a cover crop workshop at 8:30 a.m. Wednesday at Black Hawk College East Campus, Galva. Call the Farm Bureau office at 937-2411 for reservations. ANKAKEE — Young Leaders will tour Kilgus Dairy near Fairbury at 5 p.m.

July 7. A cookout hosted by the Livingston County Young Leaders will follow. Members age 35 and younger are invited to attend. Call the Farm Bureau office at 932-7471 to register by Friday. ASALLE — Farm Bureau will sell season tickets for the LaSalle County 4-H and Junior Fair held July 9-13. Cost is $20 for ages 5 and up. Tickets may be purchased at the Farm Bureau office. Call the Farm Bureau office at 433-0371 for more information. EE — The Young Leaders Committee will host a cookout at 6:30 p.m. July 19 at Aaron and Jillian Wolf ’s, 1002 Illinois Route 38, Dixon. The event is open to members 18 to 35 years old. Bring a dish to pass and lawn chairs. Call the Farm Bureau office at 857-3531 for more information. ACON — Farm Bureau will host the annual meeting and member appreciation dinner at 6 p.m. July 26 in the Pride of the Prairie Building at the Macon County Fairgrounds. Cost is $2. For more information or reser-

Wayne County Farm Bureau Young Leader Committee members launched a new initiative to collect hats for cancer patients in the area. Young leaders joined forces with Fairfield Memorial Hospital to create the “Hats On for Cancer” project. Young leaders hope to collect 1,000 hats by August 15. “Many people have extra hats hanging in their closet that they do not wear, and most likely will never wear,” commented Jamie Jones, young leader committee chair. “It’s time we put those

unused hats to good use.” Clean, unworn or slightly worn hats for men and women will be accepted at the volunteer desks located at the main entrance of Fairfield Memorial Hospital and the Medical Arts Complex entrance. Individuals can also bring hats to the Wayne County Farm Bureau office. Hats will also be collected at the Farm Bureau Member Appreciation Dinner Aug. 1 at the Cumberland Presbyterian Church in Fairfield. Hats will be distributed to those in need by Cancer Care Specialists in Fairfield.

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Hats on for cancer in Wayne County

Tuesday: • FarmWeek: “The Early Word” • Jim Angel, Illinois State Water Survey • Andrew Mussleman, Stone Seed: agronomy update • Don Norton, Illinois Agricultural Leadership Foundation: Illinois Agricultural Leadership class • Toni Dunker, Advanced Trading: livestock update Wednesday: • Shannon Woodworth, Du Quoin State Fair: fair lineup • Ivan Dozier, Natural Resources Conser vation

Ser vice: CSP re-enrollment opportunity • Mike Doherty, Illinois Farm Bureau: economic update Thursday: • Tim Maiers, Illinois Pork Producers Association • Matt Free, GROWMARK: the facts about GMO • Jason Webster, Beck’s Hybrids: agronomy update Friday: • Josh Senechal, FreezeNotis Weather • Eric Mittenthal, National Hot Dog and Sausage Council: Hot Dog Month • Mark DePue, Abraham Lincoln Presidential Library • “Horse Talk”

vations, email jennifer@ macon cfb.org by July 17. Proceeds will benefit the Foundation. EORIA — Farm Bureau will sponsor a bus trip to St. Louis from 6:30 a.m. to 8:30 p.m. July 29. The tour will include the Breeding and Agronomics Technology facility in Creve Coeur, Mo., lunch at Monsanto and the Biotechnology facility in Chesterfield. Cost is $50. Call the Farm Bureau office at 6867070 for reservations by July 10. • Farm Bureau will sponsor a golf scramble at 7 a.m. July 19 at Laurel Greens Golf Course. Cost is $15 for 18 holes of golf and cart, and $10 for lunch. Visit {peoriacountyfarm bureau. org} for a reservation form. OCK ISLAND — Farm Bureau will cosponsor a market outlook meeting at 6:15 p.m. July 10 at Lavender Crest Winery, Colona. Arlan Suderman, Water Street Solutions, and Mike Schaver, Gold Star FS, will speak. Cost is $20 if registered by Tuesday. Cost is $30 after the deadline. Call the Farm Bureau office at 736-7432 to register.

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HITE — Farm Bureau will host Life Line Screenings July 22 at the Farm Bureau office. Members will receive a discount. Call 888-653-6441 to schedule an appointment. ILL — Farm Bureau will co-host a member

family fun night beginning at 4:30 p.m. July 17 on the Farm Bureau grounds. Entertainment will be provided by Sandi Haynes and the Rocket Boys. Cost is $10 for adults and $4 for children 12 and under. Call the Farm Bureau office at 727-4811 for tickets by July 11.

W Wayne County FB uses crime reward program

Thanks to the Illinois Farm Bureau Crime Reward Program, Wayne County Farm Bureau members are offering two, $1,000 rewards. One reward will go to a person providing information leading to a felony conviction for the recent theft of 13 cattle from the George Kissner farm near Wayne City. The other $1,000 reward will be given to a person offering information leading to a felony conviction for the recent arson fires of equipment owned by Fred Tubbs of Wayne City. A John Deere 4320 tractor, a John Deere

4960, a skid steer loader and a Caterpillar E120 excavator were parked in a field owned by Tubbs west of Geff when the arson took place. The program serves as a membership benefit of the Farm Bureau organization. In order for property to qualify under the program, farmers must be a current Farm Bureau member. The $1,000 rewards will go to any person who provides information to the Wayne County Sheriff at 618-842-6631 that leads to a felony conviction in the cases. Informant infor mation will remain confidential.


PROFITABILITY

FarmWeek Page 10 Monday, June 30, 2014

Enjoy sunshine the right way to avoid long-term skin damage

Every farmer I’ve ever met prefers the outdoors. Fresh air, open horizon and sunshine. Problem is that warm sunshine can cause problems if we’re not careful. Our skin is the largest organ in the body. It is made up of multiple layers, Kevin Frye offers a wide range of protection and helps regulate our body temperature. Taking care of our skin is an essential part of personal health. The best way to accomBY KEVIN FRYE

plish that is by using sunblock. The Sun Protection Factor (SPF) rating on sunblock is a little confusing. For example, SPF 30 is not twice as good as SPF 15. It actually only provides about 2 percent more sun protection for a little longer time. There’s no harm in using the high number products (like SPF 80+). The higher SPF numbers may protect better against longterm skin damage. However, the immediate improved protection is barely detectable and no sunblock offers 100 percent protection. Regardless of the sunblock (some dermatologists recommend SPF 30, others at least 45),

Madison County FB Young Leaders finalize State Fair pedal pull Madison County Farm Bureau Young Leaders announced the Illinois State Fair pedal tractor pull will be Aug. 12 in The Shed-Illinois Avenue pavilion on the Illinois State Fairgrounds, Springfield. The entry deadline is Aug. 4. Participants may register between noon and 12:45 p.m. with the event starting at 1:30 p.m. Prizes will be awarded to the top three participants in each weight class for both the Illinois Pedal Pull Association (IPPA) and the open pulls. Weight classes for both pulls will be: 30 to 45 pounds, 46 to 60 pounds and 61 to 80 pounds. No participant may weigh less than 30 nor more than 80 pounds on event scales Aug. 12. Madison County Farm Bureau must receive a completed signed entry form for each contestant by Aug. 4. The county Young Leaders ask each county pedal pull sponsor to provide each qualifying contestant with written notification about the date, registration time, pull time and location. Direct questions to the county Farm Bureau at 618-656-5191.

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$57.15 $45.89 40 lbs. (cash) $102.00-$115.25 $110.18 Receipts

This Week 61,694 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 75,250

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $124.34 $117.74 $6.60 $92.01 $87.13 $4.88

USDA five-state area slaughter cattle price (Thursday’s price)

Steers Heifers

This week $ 152.00 $151.42

Prev. week $149.77 $149.78

Change $2.23 $1.64

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 $213.37 $204.92 $8.45

Lamb prices Negotiated, wooled and shorn, 130-169 lbs. for 137-156.65 $/cwt. (wtd. ave. 150.92); wooled and shorn 170-189 lbs. for 135.17-160 $/cwt. (wtd. Ave. 139.72)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 6/19/2014 2.3 21.4 38.9 6/12/2014 8.0 18.4 45.3 Last year 8.2 15.9 5.9 Season total 1562.5 53.5 1455.4 Previous season total 1282.3 57.7 566.7 USDA projected total 1600 925 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

it needs to be reapplied every couple of hours — not just in the morning. Most people don’t apply sunblock thick enough, which leads to a false sense of security. Studies find most sunblock is only applied about half as thick as necessary, which means half as much protection. Also, realize spray sunblock is flammable. In some instances, there have been horrific situations spraying sunblock on children while around grills or other ignition sources. All of these sunblocks are

intended to minimize the UVB radiation, which leads to sunburns. The UVA radiation goes deeper into the skin, causing early wrinkles and skin cancer. Currently, there is no rating system for UVA protection. However, water-resistant products are ideal, and the best sunblocks are those with zinc oxide or titanium dioxide. Sunblock usually has an expiration date, but the shelf life is about three years — less if the sunblock is exposed to hot temperatures.

Many years ago, sunblock wasn’t that big of a deal, and many of us are now paying the price with regular trips to the dermatologist. Realize it is never too late to begin protecting ourselves from the sun. Hats, sunglasses, clothing and sunblocks all offer protection — and help us enjoy the great outdoors! Kevin Frye serves as GROWMARK’s safety services manager. His email address is kfrye@growmark.com.

Trade surprised by lack of expansion in swine sector BY DANIEL GRANT FarmWeek

There could be some some fireworks in the hog market heading into the Fourth of July holiday. In its quarterly hogs and pigs report Friday, USDA slashed inventory numbers and surprised the trade with very limited herd expansion plans in coming months. The inventory of all hogs and pigs as of June 1 totaled 62.1 million head, down 5 percent from a year ago. The trade prior to the report expected a 3 percent inventory decline. In Illinois, the inventory of hogs and pigs totaled 4.35 million head, down 6 percent from last year. The national market hog inventory (56.3 million head) and March-May pig crop (27.4 million), both down 5 percent, also came in well below pre-report estimates. “Some hog contracts likely will be limit up when the market opens (today),” said Dale Durchholz, AgriVisor senior market analyst. “The question is, who will be willing to buy it up at these levels. We could end up exhausting the rally really quickly.” The wholesale price of pork and beef sat at record levels prior to the report. Additional Dale Durchholz price spikes could alter consumer buying habits. “The retailer really is the kingpin in this game,” Durchholz said. “Pork and beef wholesale prices already are at record levels. If we go higher yet, it could really start to have long-term repercussions. If we alter the way consumers consume meat, it’s a trend that could stay with us a long time.” Expansion plans in the hog industry could have eased the concern about tight supplies and

record prices, but producers actually farrowed .3 of a percent fewer sows from March to May. Analysts expected a 2 to 3 percent increase. Producers intend to farrow 2.89 million sows from June through August, up slightly from last year but down 1 percent from 2012. Meanwhile, the average number of pigs saved per litter from March to May declined from 10.31 last year to 9.78. “The surprising thing is (hog farmers) didn’t continue to farrow more aggressively to offset some of the expected losses of pigs due to PEDV (porcine epidemic diarrhea virus),” Durchholz said. Other analysts agreed during a teleconference hosted by the National Pork Board. “Profitability has been there the last seven to eight months. I thought we’d see some expansion show up (in the report),” said Chris Hurt, Purdue University ag economist. “This report says that’s not the case. We do not have expansion of the breeding herd yet.” Kevin Bost, president of Procurement Strategies in Des Plaines, said, “Something here that really doesn’t make sense is Chris Hurt the decline in farrowings from winter to spring. “That number to me is questionable,” he continued. “Profitability has been quite good for almost a year.” The report also indicated PEDV remains a problem. The death loss rate from the virus was 6 percent in December, spiked to 8 percent from January through March and remained high at 7 percent in April and 5 percent in May, Hurt reported. “This (report) indicates PEDV is not under control yet,” Hurt said. “Death losses are continuing.”

More money could be available for FSA loans

BY DEANA STROISCH FarmWeek

Farm Service Agency (FSA) could soon have enough money to fulfill farmers’ loan requests for the first time in years, according to Chris Beyerhelm, FSA’s deputy administrator for farm loan programs. Testifying before a House agriculture subcommittee last week, he said FSA ended each of the last four fiscal year years with a significant backlog of approved but unfunded loans. To help manage the backlog, President Barack Obama’s FY 2015 budget recommends increasing loan funding to $6.4 billion. “If these funds are provided, FSA expects, for the first time in many years, to have sufficient funds to meet the demand,” he said. “This will allow our customers to better prepare and execute their business plans, and

compete on an even playing field for land and preseason discounts on inputs.” In early fiscal year 2009, demands for loans increased to levels not seen since the early 1980s, he said. Demand has continued — and in some programs increased — at the nearrecord fiscal year 2009 levels. “Activity in FSA’s farm loan programs indicates that a significant number of farmers and ranchers continue to be unable to obtain commercial credit under current conditions,” he said. He also noted that recent Federal Reserve surveys indicate commercial lenders in most regions are maintaining “stringent credit standards.” As of May 31, FSA’s direct loan portfolio consisted of $8.2 billion owed by 70,445 borrowers, while the guaranteed portfolio consisted of $11.5 billion owed by 33,847 borrowers.


PROFITABILITY

Page 11 Monday, June 30, 2014 FarmWeek

CASH STRATEGIST

China’s corn imports might wane

Reports from China and USDA last week hinted Chinese corn import demand might be weaker this coming year. The key lies with the outcome of this summer’s crop and government inventory policy. To some extent, the changing trade picture is a result of steadily rising output. In part, it’s tied to steadily rising inventories held by the government. Even though the Chinese government never discloses the size of its holdings (of any crop), it is thought to own between 70 and 90 million metric tons (mmt) of corn. While government inventories are not big compared to inventories it owned in the late 1990s (near 100 to 110 mmt), they are getting large enough to make the government uncomfortable with the size. The steady rise in output in recent years and the steady rise in government holdings of corn were a result of Chinese government policies. The government has been using artificially high prices to support farmer income. The intent was to help minimize the migration of the population from rural to urban areas.

While that has been accomplished, government officials have come to realize that is not the most effective tool given it has again caused producers to raise corn for government inventory. Meanwhile, end users have been content to fulfill part of their needs because it was more profitable than competing with the government at times. Looking ahead, the government is said to be embarking on a new policy — one paying farmers market-driven prices while giving them a subsidy to bolster their income. That may slow the “production for inventory” situation. But it still doesn’t do anything to help the government dispose of its current holdings. In the early 2000s, they aggressively exported corn to pare down the government inventory. While it is large, it is not as large relative to consumption as it was in the late 1990s. Still, it’s big enough that it’s causing them to continue selling corn from government holdings. They’ve been selling nearly 1 mmt each week over the last two to three months. We’d expect that to continue with a possible interruption before, during and after harvest to minimize price implications at that time. Unless weather seriously affects the potential of their crop this year, that points to smaller imports this year. Maybe next year, too.

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Corn Strategy

ü2013 crop: Corn prices continue to show signs of building a short-term bottom consistent with the timing of the 20-week cycle. But given the fundamentals, it’s difficult to foresee much more than a modest rebound. Target a move to $4.65 on December futures to make sales. Get basis locked up on hedge-toarrive contracts and other unpriced inventory. ü2014 crop: Even though we don’t expect a major rebound, new-crop prices look a little overdone to the downside. Early conditions point to a good crop, but key parts of the growing season are still ahead. Wait for a December futures rally to $4.65 to make sales. vFundamentals: Monday’s USDA numbers will have some short-term market ramifications with the planting number more important than the June 1 stocks. A private forecast last week implied smaller plantings than most in the trade are anticipating. The localized flooding is also suggesting the acreage abandonment could be a little higher this year.

Cents per bu.

Soybean Strategy

ü2013 crop: The USDA June 1 stocks will resolve the old-crop supply uncertainty and provide guidance to prices. Both the cash market and futures spreads suggest supplies are not as tight as last year. Use any rally to wrap up sales. ü2014 crop: Late week worries about acreage, especially after seeing the Canadian numbers, offset the midweek gains. USDA numbers will guide prices looking forward, but the markets still have a toppy look. Smart risk management still dictates having good sales on the books. Use any small rally. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: The USDA reports will “set the table” for price direction the remainder of the summer, especially the acreage number. Even with localized flooding, there’s still reason to think this crop can be very good depending on weather through sum-

mer. The 1978 crop started with somewhat wet early conditions, but still had an abovetrend yield.

Wheat Strategy

ü2014 crop: Vomitoxin issues are a growing concern and could throw a wrench into marketing plans. If you have the ability to store wheat on farm before corn and soybean harvests, wait for the market to bid up quality wheat before making additional sales. ü2015 crop: With the nineyear cycle having turned up this winter, there is little need to make 2015 wheat sales at this time.

vFundamentals: Stats Canada reported planted wheat acres declined more than 10 percent on the year. Combined with the smaller U.S. winter wheat crop, North American production in 201415 will be well below last year. Prospects for wheat crops overseas remain good, though. Producers in the European Union are enjoying favorable weather and output from Black Sea growers has recently been revised upward. U.S. crop worries should support prices until more is known about our export competiveness.


PERSPECTIVES

FarmWeek Page 12 Monday, June 30, 2014

Europe turning to programs for economic, price stability

Mary Mackinson Faber, center, chats with visitors about dairy calves during a recent event to help consumers connect dairy farms with the products they buy. Mackinson Faber, whose family owns Mackinson Dairy of Pontiac, and Lindsay Bachman, who owns and operates That’s So Sweet bakery in Lexington, joined forces and offered a powerful message at Cheesecake and Calves at the bakery. (Photo by Kay Shipman)

Sweet, simple message satisfying

A

little hand reached through a wire fence and gingerly stroked a calf ’s head. Immediately, the toddler grinned and exclaimed, “Baby cow. Moo!” His mother crouched beside her son and encouraged him to touch the calf again. As she patted the calf ’s side, she told the boy that milk comes from cows. On the other side of the calf pen, adults and chilKAY SHIPMAN dren nibbled on cheesecake samples and sipped cartons of milk served in a cozy bakery. Two young women offered a friendly casual message to anyone who stopped by the bakery in a rural McLean County community. Mary Mackinson Faber brought two calves from her family’s dairy in Pontiac. Lindsay Bachman served minicheesecakes baked in her That’s So Sweet bakery in Lexington. The theme of their recent Cheesecakes and Calves event stuck to the basics. Mary’s family cares for and milks the cows that supply milk for grocery stores. Lindsay uses butter and cream cheese made from milk to bake tasty cheesecakes. Farm to fork demonstrated with a

Letter policy

visual connection. “My eyes were opened,” Lindsay said. “People just don’t know certain things, like where their food comes from. “I think it’s important to let people see the real people behind those (dairy) operations and how they care for their animals,” she said. Mary added her goal was “to put a face behind the dairy industry. Many people are unaware where dairy products come from.” On the surface, this educational activity didn’t appear to be different from many others happening around the state. But as I gathered information about Cheesecakes and Calves, I was struck by the fact that two young women created and hosted this event for a second year. They also received helped from family and friends, and educational materials and support from the dairy industry. But Mary and Lindsay remain its driving force. Recently, I’ve become accustomed to education efforts organized by committees, task forces and clubs. Large events and daylong expos require a lot of workers, organization and money. They attract hundreds, even thousands, of people and offer much information and many experiences. But there’s something to be

Letters are limited to 300 words and must include a name and address. FarmWeek reserves the right to reject any letter and will not publish political endorsements. All letters are subject to editing, and only an original with a written signature and complete address will be accepted.

said for more intimate events on Main Street. Lindsay explained how much her bakery depends on dairy farmers like the Mackinsons. Each week, she uses 300 to 400 pounds of cream cheese and 50 to 100 pounds of butter at her bakeries in Lexington and Normal. “I can create cheesecakes because someone milked their cows,” Lindsay said. “It’s important people understand and know we’re able to do what we’re doing and people are able to go to the store and buy milk or buy cheese because many people are working hard to put that (milk) on the shelf.” These two women get it. Many people in agriculture have come to rely on big events and organizations to educate the growing number of nonfarmers. People in agriculture are busy so that’s understandable. But we’ve gotten away from smaller, more intimate events that may have just as much impact. It doesn’t take a lot to make a difference. The need to educate is great. A simple event with two women and two calves is making a difference. How can you help? Kay Shipman serves as legislative affairs editor for FarmWeek.

A daytime telephone number is required for verification, but will not be published. Only one letter per writer will be accepted in a 60-day period. Typed letters are preferred. Send letters to: FarmWeek Letters 1701 Towanda Ave. Bloomington, Ill., 61701

The European debt crisis that began back in 2009 has undergone many changes over the last few years, but there still remains an uneasy concern about future prospects for many members of the Eurozone. As financial markets were witnessing a lot of turbulence, a handful of the DEREK most debt-laden VOGLER countries caused a panic across the region. The financial situations were virtually no different than in the preceding years, but debt investors suddenly became uneasy as the credit crisis unfolded. They were no longer willing or able to provide the limitless government funding they had in prior years. Greece made the news almost daily for a time when many thought the government would not be able to rollover its debt. After existing debt holders, including many banks and other European Governments, agreed to a 50 percent write-off and after two bailouts to the tune of 240 billion Euros, Greece has apparently passed the worst of its crisis. Other countries throughout Europe have seen similar resurrections, but the real question is what has caused the change of sentiment. Have the governments truly made enough of a change in policy to ensure that debt will no longer be a problem? Have the countries undergone great economic recoveries? Unfortunately, while there have been some moderate changes in spending (primarily due to terms of the bailouts) across the region, in most cases the economic prospects have only brightened marginally. What really changed from an investor perspective was a renewed comfort level with risk, or the belief that ultimately even the weakest members of the Eurozone will not be

allowed to fail. This new perspective has likely been one of the primary factors driving rates lower across the region. As the head of the European Central Bank (ECB), Mario Draghi plays a role similar to Janet Yellen’s in the U.S. for the Federal Reserve. The ECB is tasked with providing price stability for the Euro across all 18 member nations. Today’s mission, now that the worst of the European debt crisis seems to have passed, has changed somewhat as the ECB looks for ways to promote regional growth and prevent deflationary forces. Draghi and his fellow members of the ECB recently announced a new round of stimulative actions. The official ECB statement proclaims they do not see deflation on the horizon, and they are merely “reacting to a risk of a tooprolonged period of low inflation.” The idea behind a negative deposit rate is to encourage banks to create loans as idle deposits will be losing money. This, combined with the refinancing operations that expand borrowing capabilities based on increases in net lending, is expected to drive expanded growth across the region. As investors chew on the recent announcement, the big question will be the same one we’ve had in the U.S. Do these types of programs just push financial markets higher or do they actually have the intended consequences of stimulating real economic growth? The jury is still out on this one, but one thing is certain — the cost of these programs is very high and someday there may well be fallout from this global push by central bankers to change the business cycle in the name of price stability.

Derek Vogler serves as vice president of investments for COUNTRY Financial

LETTER TO THE EDITOR

Global warming addressed

Editor: Have you seen Lord Christopher Monckton’s speech given October 14, 2009, to the Minnesota Free Market Institute? It is an hour and a half long, but it goes quickly, and is oh so well worth the time. I do not believe anyone can be well informed and vote wisely until he or she has seen this. If you are too busy to watch, here are some points of the speech: • Global warming and cooling cycles are normal and caused by the sun rather than man. • The Copenhagen Climate Change Conference Accord stating man caused global

warming is all about international socialism, not the environment! • Carbon dioxide levels follow warming and cooling changes rather than cause them, and since 1995, the earth has been in a cooling phase. • If the U.S. goes along with any part of the Copenhagen Accord, we lose our country. His best one-liner about the global warming crowd is, “They call themselves green because they’re too yellow to admit they’re red.” DANIEL HARMS Bone Gap Editor’s note: Monckton’s speech may be viewed at {youtube. com/watch?v=stij8sUybx0}.


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