Got a question about cover crops? Get the latest information from our team of experts. page 3
Monday, May 5, 2014
CHECKING PASTURE PROGRESS
Dave Alwan knows meat. The Echo Valley Meats owner shares his “Shark Tank” experience. page 7
President Guebert to lawmakers: ‘Keep fighting for agriculture’ Two sections Volume 42, No. 18
BY DEANA STROISCH FarmWeek
Matt Ewing, a cattle producer from Rushville, assesses grass conditions in a pasture on his family’s farm in Schuyler County. The delayed spring slowed pasture growth, forcing cattle producers like Ewing to postpone pasture grazing. See Page 4 for more details about pasture and field conditions. (Photo by Ken Kashian)
Wayne County Farm Bureau members help residents properly dispose of unwanted medications. page 9
Rich Guebert Jr. traveled to Washington, D.C., last week to lobby on behalf of Illinois farmers — his first official trip as Illinois Farm Bureau president. Guebert’s two-day visit consisted mainly of meetings with members of the Illinois congressional delegation. His message? “Keep fighting for agriculture and for what makes agriculture the No. 1 industry in the state of Illinois.” Guebert discussed several pressing issues with lawmakers — from the farm bill to the need for immigration reform. He also explained IFB’s opposition to the Environmental Protection Agency’s
proposed rule defining “waters of the U.S.” He said Rep. Rodney Davis, R-Taylorville, explained that Congress and the courts have made it clear that EPA’s jurisdiction over navigable waters is limited. Guebert said Davis told him, “We need to focus on rules and not on making exemptions Rich Guebert Jr. for those rules.” Guebert said he gained further insight regarding continued discussion on tax extenders this week and debate centering on the Water Resources Develop-
ment Act (WRDA). “They’re finally getting something done on WRDA,” he said, calling the discussion “encouraging.” “We’ve worked long and hard to get WRDA where it is, the improvements to the locks and dams on the Illinois/Mississippi Rivers.” In addition to Davis, Guebert met with Reps. Cheri Bustos, D-East Moline; Bill Enyart, D-Belleville; and John Shimkus, R-Collinsville. He also met with Sens. Dick Durbin, D-Springfield, and Mark Kirk, R-Highland Park. Guebert also talked with Bob Stallman, president of the American Farm Bureau Federation and representatives of the USDA National Resources Conservation Service.
Hog, cattle slaughter numbers plummet despite record profits BY DANIEL GRANT FarmWeek
Periodicals: Time Valued
Hog and cattle slaughter numbers continue to fall off the table. USDA recently reported commercial hog slaughter in March totaled 8.67 million head, down 6.9 percent from a
year ago. March cattle slaughter totaled 2.45 million head, down 5.3 percent from last year. “This was the biggest decline in monthly hog slaughter since July 2010,” authors of the CME Group’s Daily Livestock Report noted. Hog and cattle prices subsequently raced to record highs in recent months. “March was the most profitable month ever to sell hogs,” said Ron Plain, University of Missouri ag economist. Farmers in March sold hogs for an average profit of $92.35 per head, according to Iowa State University. It’s the highest profit margin since ISU started keeping records on hog prices in 1965. The previous record profit dates back to September 1975. Meanwhile, wholesale beef prices continue to climb. USDA’s all beef price in March averaged $5.36 per pound, up nearly 40 cents from the previous year. So why are slaughter num-
bers falling at a time of record livestock and meat prices? Drought, particularly in the southern U.S., and porcine epidemic diarrhea virus (PEDV) deflated herd counts in recent years. “PEDV is the key (to lower hog slaughter numbers),” Plain said. “It increased on-farm death losses, so there are fewer pigs to sell. And, since producers have extra space in finishing barns, they’re keeping (hogs) around longer and letting them grow.” Record slaughter weights offset some of the lack of inventory. Hog slaughter this year, through last week, was down 4.3 percent, but U.S. pork production declined just 1.3 percent during the same time. However, red meat inventories continue to decline. Total red meat supplies in cold storage on March 31 were down 14 percent compared to the previous year. “In the case of cattle, those
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(lower slaughter) numbers are what you’d expect at this point in the cattle cycle,” Plain said. “The calf crop declined the last several years, and we’re retaining more females on farms.” The U.S. cattle inventory this year slipped to its lowest level since 1951. Farmers in recent years liquidated herds, particularly in the south, due to drought and high feed prices. Plain looks for the recent
trends to continue. “We expect hog and cattle slaughter will stay down all year long,” he said. “As a result, livestock prices will be up and meat prices at grocery stores will be up.” The recent run-up in wholesale meat prices could slow, but a decline is unlikely, Plain noted. Pork prices typically climb this time of year and peak around July.
Illinois Farm Bureau on the web: www.ilfb.org ®
Quick Takes
NEW DIRECTOR
FarmWeek Page 2 Monday, May 5, 2014
LAWMAKERS FIGHT RFS PROPOSAL — Rep. Cheri Bustos, an East Moline Democrat, met last week with senior White House officials about the Environmental Protection Agency (EPA) proposed rule from November on the Renewable Fuel Standard (RFS). Bustos was joined by two other members of the U.S. House Committee on Agriculture — Minnesota Democrats Tim Walz and Rick Nolan. After the meeting, the lawmakers released a joint statement, which said in part: “The EPA’s proposed rule would do nothing but undercut a growing American energy industry and further our reliance on foreign oil. Biofuels allow us to take control of our energy future, promote industry innovation and create thousands of jobs in the Midwest and across the country.” In November, EPA proposed the renewable fuel mandate in the RFS be lowered from 14.4 billion gallons to 13 billion gallons. The advanced fuel mandate, including biodiesel and E85 fuel, would drop from 3.75 billion gallons to 2.2 billion gallons. The proposed rule is opposed by agricultural groups across the country, including Illinois Farm Bureau. EPA officials have said they expect a final rule to be released in late June.
CHS BUYS ROCHELLE ETHANOL PLANT — A Minnesota-based farmer-owned cooperative purchased an ethanol refinery near Rochelle, which produces 133 million gallons of renewable fuel, corn oil and distillers grains. CHS Inc. officials said last week they expect to close on the cash purchase in June. According to Minneapolis Star Tribune reports, CHS plans to retain about 60 employees currently working at the plant. CHS, with $44.5 billion in revenue in fiscal 2013, owns two petroleum refineries, blends ethanol with gasoline and sells fuel through Cenex stations through the nation. The Rochelle plant was previously owned by Sinav Ltd. of London. The company put the plant, built in 2006, up for sale in January. CHS had marketed ethanol from the plant since its inception.
SOYBEAN REFERENDUM REQUESTS ACCEPTED — Through May 30, soybean producers may request a referendum be conducted to determine whether to continue the soybean checkoff. The Soybean Promotion, Research and Consumer Information Act requires the U.S. Secretary of Agriculture to offer the request every five years. Producers interested in having a referendum may obtain a request form from Farm Service Agency county offices by mail, fax or in person or online at {ams.usda.gov/AMSv1.0/ Soybean InformationontheSoybean RequestforReferendum}. To be eligible, producers must certify and provide documentation that shows they produced soybeans and paid an assessment on soybeans Jan. 1, 2012, through Dec. 31, 2013. USDA will conduct a referendum if at least 10 percent of the nation’s 569,998 soybean producers support a referendum. No more than one-fifth of the referendum requests can be from any one state.
(ISSN0197-6680) Vol. 42 No. 18 May 5, 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
‘Don’t give up,’ director advises
Dennis Hughes went to college to become a minister. He ended up a farmer. Hughes of Decatur was elected in December to serve as Illinois Farm Bureau’s District 11 director. He has been an IFB member for 39 years. Hughes works for B & B Farms, a family-owned grain farm located west of Decatur. He also serves as minister of the Illini Congregational United Church of Christ in Warrensburg. “After 33 years of managing my own farming operation, I have had the unique opportunity to work with four other different farming operations,” Hughes said. “Each with differing views and techniques, but all of them were — and are — successful farms. Those experiences will be helpful in my new role as IFB director serving the needs of our diverse farm members.” Hughes previously served on the Macon County Farm Bureau Board for more than 20 years, six of them as president. He also served more than 20 years as an Activator trustee for Congressional Districts 13 and 18. The six-county district he now represents includes Christian, DeWitt, Macon, Moultrie, Piatt and Shelby counties. Hughes and his wife, Betty, have three children: Christopher, Eric and Jonathan. They have four grandchildren. The couple met in high school and married in college. Hughes was attending Lincoln Christian College at the time. He planned to become a minister. Looking for some part-time work to support his new bride, Hughes saw an ad for farm work on a bulletin board at Lincoln Christian. “I answered the ad and soon found myself working for a farmer with a grain and hog confinement operation,” Hughes BY DEANA STROISCH
recalled. “If it wasn’t for that experience, I probably would have been a minister.” Hughes grew up on a farm and started farming with his father and his brother, Larry, in 1975. And then the challenges began: high interest rates, inflation, high land costs, high input costs. “What looked like a promising future for farmers turned into a battle for survival,” he said. “Throw in a few droughts in the early 80s and farmers were exiting the business in high numbers.” Hughes had doubts about his own future in farming, so he decided to go back to college. For two years, he trekked 48 miles to Normal, sometimes five days a week. He received his bachelor’s degree in ag business from Illinois State University in May 1988. His plan: get a job in the ag industry. Two weeks later, his father had a fatal heart attack. Hughes decided to return home and farm with his brother. The brothers continued farming until 2008. Most of
Ab ov e, Dennis Hughes, new District 11 Illinois Farm Bureau Board director, discusses seed corn varieties with Bill Brown of B & B Farms, a family-owned grain farm west of Decatur. Left, in addition to farming, Hughes serves as minister of the Illini Congregational United Church of C h r i s t i n Wa r rensburg. (Photos by Cyndi Cook)
their rented land was sold at auction. Hughes thought about retiring from farming. But that spring, a farmer friend was in an automobile accident and couldn’t work. He asked Hughes to help farm his ground, which was located throughout Macon County. “It rekindled a passion to farm in me that I thought was lost,” he said. The farmer recovered and Hughes continued working for other farming operations. In 2010, he became a full-time employee of B & B Farms. He didn’t give up on his pursuit of ministry either. In 2013, he became a licensed UCC Minister serving Illini Congregational United Church of Christ. He served as the church’s interim minister for about six months and in February, officially became minister of the 100-member church. He encouraged people considering farming as a career to get a summer internship and find out if the job is something they are interested in. And if people are interested: “Don’t give up.” “It won’t be easy,” he said. “And you may have to travel from home a few miles — or even to another state — but you might be able to link up with a retiring farmer who would help give you a start.”
NATURAL RESOURCES
Page 3 Monday, May 5, 2014 FarmWeek
New feature offers ideas for farmers’ cover crop questions
BY KAY SHIPMAN FarmWeek
Cover crops generate interest — and questions — across Illinois. A team of Illinois-based experts agreed to share their knowledge and experience with FarmWeek readers. “Discover Cover Crops” will feature responses to readers’ questions from conservation and agriculture experts. • Dave Bishop, owner of PrairiErth Farm, operates a diversified organic family farm in central Illinois. Previously, Bishop served as resource conservationist with the McLean County
Soil and Water Conservation District. • Pete Fandel, agriculture associate professor at Illinois Central College, also serves as a cover crop specialist with the Illinois Council on Best Management Practices. Previously, he served as a crops educator with the Universtiy of Illinois Extension in Woodford County for 17 years. • Russ Higgins, commercial agriculture educator with the U of I Extension, conducts research and programs at the Northern Illinois Agronomy Research Center. He also serves as a representative on the Mid-
west Cover Crops Council. • Dean Oswald, regional cover crop specialist with the Illinois Council on Best Management Practices, conducts forage and cover crop programs. He retired after 34 years as an animal systems educator with the U of I Extension. • Mike Plumer, coordinator of the Illinois Council on Best Management Practices, conducts programs and research in cover crops, conservation and water quality issues. He retired after 34 years as an agriculture and natural resources educator
with the U of I Extension. Readers’ questions may cover any topic related to cover crops. Names and addresses may be submitted, but are not required. Questions requiring a geographic-related answer, such as timing of seeding or burndown, should include the reader’s county. Questions may be emailed to kay ship@ilfb.org, add “Discover Cover Crops” in the subject line or mail to Discover Cover Crops, Kay Shipman, 1701 Towanda Ave., Bloomington, Ill. 61701.
Cover crops use, remove nitrogen, making it available to succeeding crops
Q. Which cover crops collect/remove nitrogen (N) the quickest or most efficiently? Dave Bishop, PrairieErth Farm: This is best summed up by Melanie Epp in “4 Key Management Strategies Using Cover Crops”: Members of the Brassica family, including oilseed radish, turnip and kale, are very competitive. They’re also high nitrogen feeders, so they will reduce the amount of nitrate in the soil, making it difficult for weeds to grow. Pete Fandel, Illinois Central College: Several cover crop species can uptake leftover N following a corn crop. Annual rye, cereal rye and radish are the most commonly used cover crops for this purpose. Research being done at Illinois State University is focusing on annual rye and radish for nitrogen uptake. Their data suggest those two species can uptake several hundred pounds of N and convert it to an organic form. After the plants die, this N will be released back into the soil. The release rate and timing will depend on which species you use and what stage the plant is in when it is killed. The radishes will likely winterkill and release their N sooner than the annual rye as it will need to be killed with chemicals in the spring in most years. The later annual rye is killed the longer it will take for the nitrogen release to the following crop. Russ Higgins, University
of Illinois Extension Northern Illinois Agronomy Research Center: This is really two questions — first, those cover crops that do not produce but can “scavenge” available N and assimilate into plant material that then will be made available to succeeding crops upon cover crop decomposition. Species that put down an extensive root system, such as annual ryegrass, are considered to be very good scavengers, followed by other cover crop grasses (cereal rye and oats) and the brassicas (oilseed radish and canola). Quantifying the amounts of nutrients that cover crops scavenge is one of the questions we are trying to answer in a U of I five-year cover crop project. The project is being conducted at four locations across the state. The project encompasses research farm and on-farm research components and uses extensive soil and biomass sampling. Cover crops that actually “produce” N would be legumes. At our northern Illinois site, we have been working with hairy vetch and crimson clover for two years. We’ve had limited growth and have not successfully overwintered them. For individuals who may have an extended growing season for cover crops in the fall, especially in northern Illinois following wheat or early chopped silage, we would expect better results. We have some dated research from the
AFBF launches waters of U.S. website
Farm Bureau members can learn more about the Environmental Protection Agency waters of the U.S. proposed rule at a new American Farm Bureau Federation website. Members can further take action on the proposal at the Ditch the Rule website at {ditchtherule.fb.org/}. Find answers, get resources and send tweets using the hashtag #DitchTheRule.
Northern Illinois Agronomy Research Center using medium red clover after a wheat crop followed the next year by a corn crop that had very good results. We are currently retesting that program. Dean Oswald, Illinois Council on Best Management Practices: Annual ryegrass has the greatest potential for scavenging nutrients because of the very deep root-
ing system. Cereal rye, millets, sudangrass and oilseed radish are also noted for nitrogen recycling abilities. Mike Plumer, Illinois Council on Best Management Practice: Most efficient in collecting N are oilseed radish and annual ryegrass if planted on time where they can get good growth. Ryegrass has the advantage in that it can collect until it is killed in the
spring. In comparison, radishes stop collecting by November and their rate of collection is highly dependent on an early planting date.
Questions may be emailed to kayship@ilfb.org, add “Discover Cover Crops” in the subject line or mail to Discover Cover Crops, Kay Shipman, 1701 Towanda Ave., Bloomington, Ill. 61701.
The Envirothon team from Midland High School, Varna, celebrates winning the Illinois Envirothon held at Memorial 4-H Camp, Monticello, last week. Team members, left to right, are Nick Varvil, Peter Vik, Evan Koehler, Damion Schierer and Chelsea Schierer. Bradley Stork, Midland biology teacher, advises the team. Midland will represent Illinois in a north-central regional competition in August. (Photo by Kay Shipman)
State environment champs head to regional contest
BY KAY SHIPMAN FarmWeek
High school students who won last week’s Illinois Envirothon will next pit their knowledge and skills against students from other states. However, a regional twist will replace a national event. After a major sponsor loss ended the national Envirothon, the Association of Illinois Soil and Water Conservation Districts (AISWCD) worked with other north-central state associations of soil and water districts to develop a regional contest, said Lonnie Wilson, AISWCD president. “In Illinois, we looked at trying to put on a regional event
so state winners would have a place to go,” Wilson explained last week as teen competitors buzzed around him. The Envirothon tests students’ knowledge of soils, aquatic ecology, wildlife, forestry and an annually changing environmental topic. This year, students focused on sustainable agriculture and locally grown food. For the Aug. 3-5 competition, organizers secured a location at Loyola University and additional contest sites in McHenry and Lake counties. They’re still seeking about $15,000 in donations and sponsorships, especially scholarships for the regional winners,
according to Kelly Thompson, pending AISWCD executive director. “Everything is planned; all the tests are ready to go; we
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Watch Kay Shipman’s video interview with Envirothon participants at FarmWeekNow.com.
have volunteers,” Wilson added. To date, eight states plan to send winning teams of high school students. In addition to Illinois, they will represent Indiana, Missouri, Minnesota, Wisconsin, Michigan, Virginia and Mississippi.
PRODUCTION
FarmWeek Page 4 Monday, May 5, 2014
Delayed pasture, forage growth challenges producers BY DANIEL GRANT FarmWeek
Matt Ewing, a cattle producer from Rushville (Schuyler County), typically turns his herd out to pasture by mid-April each spring. This year, however, the cattle on Ewing’s farm and many other operations around the state won’t begin grazing until well after May Day. Abnormally cold temperatures, and even some late-season snow showers, delayed pasture growth in recent months and caused some winterkill in alfalfa stands. “We haven’t been able to get the cows out on grass,” Ewing told FarmWeek last week. “We’re still feeding hay.” Ewing, who runs about 150 head of Angus cattle, raises show cattle and sells seedstock, prefers pasture grass to reach at least 4 inches in height in the spring before turning his herd out. The grass on Ewing’s farm last week was about 2 to 3 inches tall, although some pastures nearly were ready after rain showers passed through early last week. “Just because the calendar says it’s time to get the cows out (to pasture), it’s not taking
Matt Ewing, a cattle producer from Rushville, stands in an open pasture while some of his Angus herd feeds on hay in the background. Ewing and his family have about 300 acres of pasture, but as of last week were unable to use it for cattle grazing due to slow grass growth. Ewing typically waits for pasture grass to reach at least 4 inches before turning cattle out. Pasture growth last week was 2 to 3 inches tall. (Photo by Ken Kashian)
place,” said Travis Meteer, University of Illinois Extension beef cattle educator. “We have less grass than we usually have this time of year.” Meteer advised cattle producers to hold off grazing
until pastures are ready and in the meantime rely on feedstuffs such as hay, silage and coproducts with supplements to balance rations for their herds, if possible. Otherwise, farmers risk
damaging grass stands and root structures in pastures. “Producers who turn their cows out (too early) probably will stunt some of the grass growth and affect the overall yield of their pastures,”
Meteer said. “You may not see it (the damage) now, but it will show up later in the summer.” If farmers already turned cattle out on pastures or have no other choice, Meteer recommended switching to a modified grazing plan. Farmers in that scenario graze cattle for the time being, but move the herd to another location this summer to allow the pasture to recover. The cold conditions this spring also slowed alfalfa growth and forced producers to use up existing stockpiles of hay and other stored feeds. “We had excess hay and thought we’d have a surplus going into this year,” said Ewing, who recently used up the last of the corn silage on his farm. “Now we’re starting out on a clean slate and will have to rebuild (silage, hay and other forage supplies) all year.” Farmers should scout their alfalfa fields in the weeks ahead. Alfalfa stands that were thinned by winterkill could be more susceptible to weed pressure. “The delayed spring certainly affected the growth of forage,” Meteer said. “The quality is good. There’s just not as much as last year.”
Farmers ready to start/restart spring planting activities
BY DANIEL GRANT FarmWeek
Farmers plan to ratchet up planting activity in the days ahead after another round of below-normal temperatures and rain slowed fieldwork last week. Temperatures last week dipped into the 50s for highs and high-30s for lows. Rainfall, including some significant amounts, saturated much of the state. “The rivers are bank-full and in some cases out of their banks,” said Dan Meinhart, a FarmWeek CropWatcher from Montrose (Jasper County). Rainfall last week totaled as much as 7 inches in some parts of Jasper County, Meinhart noted. Corn planting as of the first of last week was 32 percent complete statewide, up from just 1 percent complete at the same time last year. Two percent of the bean crop was in the ground as of the first of last week compared to the five-year average of 3 percent. “Cold temperatures previously held us up and now it’s moisture (delaying planting),”
Martin Barbre, a farmer from Carmi (White County) and president of the National Corn Growers Association, said last week. “I’d say just 15 to 20 percent of corn is planted in this area and very few beans.” Elsewhere, farmers planted a significant amount of acres before last week’s delays. “We got all our corn planted (April 20-27),” said Matt Ewing, a farmer from Rushville (Schuyler County). “I’d say countywide corn planting is about 75 percent done.” Soil temperatures warmed quickly in mid-April at some locations before last week’s cold front moved through the state. “We’re in kind of a dry pocket and the ground warmed up quick,” Ewing said. “Hopefully, we can start beans when things dry out again (as early as this week).” Barbre believes there still is plenty of time for farmers to plant corn without risking a major yield reduction. He estimated farmers in Illinois will stick with their planting
Economist: Acreage shift possible in Corn Belt
Darrel Good, University of Illinois Extension economist, believes most farmers in Illinois will stick with their planting intentions. Illinois farmers last week had nearly a third (32 percent) of corn in the ground compared to the five-year average of 33 percent. Elsewhere, though, planters remained parked due to cold or wet conditions. There even was snowfall reported in the northern Corn Belt last week. “Significant corn planting likely occurred in some areas last week,” Good said. “But prospects for a cool, rainy pattern over much of the northern Plains and Corn Belt (through April into early May) do not favor rapid corn planting.” Corn planting last week was just 15 percent complete in Iowa (18 percent behind average), 4 percent complete in Minnesota (26 percent behind average) and 1 percent complete in Wisconsin (9 percent behind average). Farmers in North Dakota as of last week planted less than 1 percent of the corn crop compared to the average of 10 percent. “Most everybody was glad to get the moisintentions for at least another month before possibly switching to more beans. “We’re just waiting and hoping for drier weather,”
ture (last week) but it cuts both ways,” Good said. “It slowed planting a bit.” If planting prospects don’t improve in the next two to three weeks, Good believes some farmers, particularly in the northern Corn Belt, could shift from corn to more bean acres. “It appears it could remain cool and wet in the northern Corn Belt,” he said. “At some juncture, it could be the focus of a possible acreage shift.” Producers in North and South Dakota indicated in USDA’s March plantings report they will reduce corn plantings this year by 1.3 million acres. “It remains to be seen if that number becomes even bigger,” authors of the CME Group’s Daily Livestock Report noted. Cold soil temperatures aren’t the only factor that could play into a possible acreage shift in the northern U.S. Soybean futures and old-crop bean prices are also strong. “Consumption remains robust,” Good said. “It appears (the U.S.) needs to import a fair amount of beans this summer. Old-crop prices likely will stay pretty firm before we get through summer.” — Daniel Grant
Barbre added. “I’m hoping we can roll by (today).” Illinois farmers as of the first of last week planted 66 percent of oats and 7 percent
of sorghum. Winter wheat conditions were rated 8 percent poor or very poor, 30 percent fair and 62 percent good to excellent.
EMERGING ISSUES
Page 5 Monday, May 5, 2014 FarmWeek
NREC research, education reaches farmers, retailers BY KAY SHIPMAN FarmWeek
Research projects and education programs surfaced new information and shared knowledge with farmers and ag fertilizer retailers during the Illinois Nutrient Research and Education Council’s (NREC) inaugural year. In 2013, NREC invested $1.47 million on seven projects focused on fertilizer use and education, and water quality. “One of the most important projects studies how cover crops can be used in Illinois crop rotations and their nutrient uptake and removal,” said
Illinois Farm Bureau Director Dale Hadden of Jacksonville. Hadden represents IFB on NREC. An assessment of 75 cents per ton of fertilizer sold funds NREC, a 13-member council governed by representatives of the ag sector, fertilizer industry and the Illinois Department of Agriculture (IDOA). In addition to Hadden, other voting members represent IDOA, Illinois Corn Growers Association, Illinois Soybean Association, Certified Crop Advisers, and the fertilizer and specialty fertilizer industry. Hadden noted Illinois agri-
culture proactively seeks to research and improve farming practices and technology through NREC-funded projects and education rather than cope with nutrient restrictions challenging farmers in other states. Last week, NREC released its first project report. The full 10-page document may be viewed online at {illinois nrec.org}. In January, NREC announced its 2014 fertilizer research and outreach projects — a $2.55 million investment. Highlights from the 2013 report include: • Cover crop research trials
are ongoing at four University of Illinois research farms (See Discover Cover Crops page 3) and on eight private farms. • Thirty-three nitrogen rate field trials were conducted on farms. The trials included application of several nitrogen rates, variable rates, comparisons of split applications versus straight applications and assessment of a nitrogen rate calculator. • Dan Schaefer with the Illinois Council on Best Management Practices discussed nutrient research and practices at 30 meetings attended by farmers and ag retailers. He also met individually with
In a letter to EPA, Lauren Lurkins, IFB director of natural and environmental resources, cited several reasons for the extension request: • The timing. “Our members — those who would be most affected by the proposed regulation — are out planting crops, tending to their orchards and prepping the soil for this year’s cultivation and harvest,” Lurkins wrote. • Other rules. EPA also released a proposed rule defining “waters of the U.S.” Lurkins wrote: “It is unreasonable for the agency to expect farmers and ranchers to analyze both of these far-reach-
ing proposals at the same time without giving them ample time to judge the impact of these proposals on their operations.” • The proposal itself. Lurkins described the proposed changes as “extensive.” The proposed changes include altering the family farm exemption and
imposing stricter requirements for personal protective equipment. She also noted the proposed rule requires “buffer zones” around pesticide-treated fields, a change that could reduce the amount of acres available for crop production.
IFB to EPA: Allow more time to comment on rule BY DEANA STROISCH FarmWeek
Illinois Farm Bureau formally asked the Environmental Protection Agency (EPA) to allow three more months to comment on proposed rules for handling and applying pesticides. The current deadline to submit comments is June 17. IFB requested EPA extend the deadline until at least Sept. 17. According to EPA, the changes to the Agricultural Worker Protection Standard (WPS) would better protect agricultural workers and their families from pesticide exposure.
numerous farmers and retailers. • Two research and outreach field sites were established on farm fields in Champaign and McLean counties. On both sites, water quality will be monitored along with application of different nutrient practices. • University of Illinois researchers studied phosphorous runoff following surface and subsurface fertilizer applications on no-till and strip-till fields. Preliminary results show management techniques may be used in highly sensitive areas to minimize phosphorous runoff.
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Dow Enlist products advancing BY DEANA STROISCH FarmWeek
Dow AgroSciences moved closer last week to commercially launching Enlist corn and soybeans. The Environmental Protection Agency (EPA) announced the start of a 30-day comment period to allow growers to provide input on Enlist Duo. The herbicide contains glyphosate and the choline salt of 2,4-D. According to EPA, choline salt of 2,4-D is less prone to drift and volatilization than its other forms, but isn’t registered for weed control uses. “If finalized, EPA’s action provides an additional tool to reduce the spread of glyphosate resistant weeds,” according to an EPA press release. “To ensure that Enlist Duo successfully manages weed resistance problems, the proposal would impose requirements on the manufacturer, including robust monitoring and reporting to EPA, grower education and remediation, and would allow EPA to take swift action to impose additional restrictions on the manufacturer and the use
of the pesticide if resistance develops.” EPA will accept comments until May 30. A final decision is expected in late summer or early fall, according to the agency. Approvals from USDA remain pending as well. Pending regulatory approvals, officials from Dow AgroSciences expect to launch Enlist corn and soybeans in 2015 and Enlist E3™ soybeans and Enlist cotton in 2016. “To prepare growers, retailers and seed sellers for the introduction of the Enlist Weed Control System, Dow AgroSciences has offered Enlist 360 field training,” according to a company statement. “Enlist 360 field training is a part of the education and training opportunities offered with the Enlist Ahead management resource. A comprehensive learning experience, Enlist 360 field training educates growers, retailers and seed sellers on the responsible use of the Enlist system.” More than 5,000 people participated in the field training in 2013, according to Dow AgroSciences.
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FarmWeek Page 6 Monday, May 5, 2014 Bernie Walsh, Durand, Winnebago County: We had a very cold, wet week with about 1.2 inches of rain right when we would have all liked to be planting corn. There was actually very little corn planted last weekend (April 25-27) before it started raining. The Rockford Weather Bureau had the coldest May 1 in 96 years. Maybe over the weekend (May 4) we can get the planters rolling again. Have a safe week. Pete Tekampe, Grayslake, Lake County: Another cool, wet week in Lake County. We got moisture almost every day, but only received .9 of an inch for the week. Not much activity in the fields last week. Rain is forecast for four days this week, but at least the temperature will be in the 60s with two days in the low 70s. Winter wheat is in tough shape. About 30 or 40 percent is only fair and the rest is bad. The west sides of the hills are gone and so are the low spots. Leroy Getz, Savanna, Carroll County: Cool and wet with 1.5 inches of rain for the week brings April’s total to 4.7 inches. The small amount of corn planted has not yet emerged, and we only have 48-degree soil temperatures. Most farms have yet to start. Oats and wheat are looking good at this point. There is another big concern on the winterkill of evergreen shrubs, ornamentals and pine trees. Farm windbreaks have some damage also. Homeowners and landscape specialists have a lot of replacement work to do. Ryan Frieders, Waterman, DeKalb County: The past week has been cold with highs in the low 50s. We have also received just over 1 inch of rain from showers that happened every day. We started planting corn late last week. We need warmer temperatures to pull the corn out of the ground. Corn planting progress is possibly 10 percent complete, but no corn in our area has emerged. No beans have been planted. Hopefully, it will warm up, dry out and we can return to springtime activities. Larry Hummel, Dixon, Lee County: A little bit of corn was planted the weekend of April 26-27, but it has been cold and rainy since. Not a lot of rain — .5 to 1 inch, but enough to get things wet. It wasn’t going to dry very fast when the high temps for the day were in the 40s. I’m not sure what this week will bring, but if we miss the light showers that were forecast we might be able to get back in the fields by Tuesday. Ken Reinhardt, Seaton, Mercer County: It was a cold, wet week with more than 2 inches of rain. The total for April was 4.5 inches. The free climate rainfall program has been accurate so far, but the workability feature needs some tweaking. It said fields were good to go Friday morning and my feeling is it might be fit by Monday. I expect my first corn to be up by that time, but I am glad I slowed down planting well ahead of this cold snap. The last couple of days have featured no growing degree days and soil temperatures around 48 degrees. Ron Moore, Roseville, Warren County: We received 2.5 inches of rain Sunday (April 25) through Wednesday. We only have one day of corn planting to do and then on to soybeans. The first field of corn planted is now emerged, but the rest is still not up yet. Cold temperatures have slowed emergence. The cold weather has also slowed pasture growth, and I have not turned all of my cattle out to pastures yet. Hopefully, this week it will warm up, and we can return to fieldwork and moving cattle to their summer homes. Jacob Streitmatter, Princeville, Peoria County: Scattered showers across the area slowed planting down for the week. The rain was greatly needed, but did not amount to very much. Rain totals were from .5 of an inch to roughly 1 inch. The cold weather that followed will not be good on the last planted corn. The first planted corn has sprouted. Hopefully, sunshine returns with warmer weather in the very near future.
Tim Green, Wyoming, Stark County: It was a pretty quiet week. Parts of the county received anywhere from .6 of an inch of rain to a little over 1 inch. We could have taken a little more than .6 of an inch. That pretty much stopped all fieldwork around here for the week. People are getting ready for the next wave, which is hopefully this week. The weather has been very cold. There is a little concern about the corn that has been planted. I think it will be okay. Some of the seed experts are saying you might want to watch the corn closely. Be safe. Ron Haase, Gilman, Iroquois County: The rain began Sunday afternoon (April 27) and kept everyone out of the fields for the rest of the week. Some local farmers have finished planting corn, while other farmers have not begun planting corn. A few soybean fields have been planted as well. We started planting to check out how the planter was performing. After making some corrections, we were able to plant more than 30 acres. Over the past week, our farms received a range of 1 to 1.2 inches of rain. For the month of April, we received more than 3 inches of rain, which is 60 percent of the average for the last five years. The local closing prices for May 1 were nearby corn, $4.78; new-crop corn, $4.66; nearby soybeans, $14.73; new-crop soybeans, $11.99. Brian Schaumburg, Chenoa, McLean County: Late arriving rain halted field activities on Sunday (April 27), but not before nearly 70 percent of the corn and a few fields of beans were planted. Rain totals were mostly .4 to 1 inch. Our farms received only 1.5 inches for the month and it is noticeable. Corn planted April 18-20 is emerging and the forecast for warm weather should get things off to a fast start. Markets corrected abruptly. Corn, $4.89, fall $4.76; soybeans, $14.71, fall, $11.86; wheat, $6.68. Steve Ayers, Champaign, Champaign County: Planters were parked this week as we watched it rain 2.3 inches and enjoyed March-like temperatures. Corn that was planted Good Friday spiked through the ground 10 days later. Four-inch soil temperatures that were 59 degrees on Monday (April 28) slipped to 54 by Thursday. Looks like a chance of rain moves in late this week just as we think of returning to the field. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Our gauge here collected about 2.75 inches of rain for the past month with 2.2 inches coming just in the past week. Even with a little rain, on most days planters kept busy, and I think most corn is in the ground. Soybeans planted are scarce to find. Corn emergence is zero, and I think it is because of cold soils. Preemerge chemicals applied early on some of the resistant weeds are doing well so far, especially if followed by some min-till passes. It has been a rough week for many with all the tornadoes. Hope you all still have a roof overhead. Carrie Winkelmann, Tallula, Menard County: Rain for the month of April totaled 4.2 inches with that total being pretty much split between the first and last weeks of the month. The corn planted between rains is now up and showing good emergence despite the cold weather. I would estimate 90 percent of the corn acres in the county are planted and maybe 5 percent of the soybean acres are planted. Gardening is going slow because of the cold weather and some lack of conversation between the person who planted the onions and the person who tilled the garden. Whoops!
Tom Ritter, Blue Mound, Macon County: It has been a cold, damp week with 1.3 inches of rain over three days. The bigger story was the cooler temperatures with highs in the mid to lower 50s that slowed corn emergence and made most people glad they have no soybeans in the ground. Corn planting at this point is more than 80 percent complete. Farmers had a great run, and it will not take long for everyone to wrap up corn planting. Soybean planting will probably resume late in the weekend or by the time you read this report. At least farmers had a week to get reorganized, prepared and rested up. It will be nice to plant beans the first week of May and not the first or the middle of June as we did last year. Todd Easton, Charleston, Coles County: Planters got back to work Saturday (April 26) after being halted by .35 of an inch of rain the Thursday night before only to be chased back into the sheds by a more substantial 2 inches of rain that fell Sunday through Monday (April 27-28). Fields may not be ready until after the weekend at this point, but the forecast so far is showing a clear path until Thursday, which may be enough days to get corn planting close to completion. Soybean planting has not even started yet to my knowledge, but I suspect that will change on the next go around. Jimmy Ayers, New City, Sangamon County: We received 1.1 inches of a pretty general rain Sunday evening and Monday (April 27-28). It was off and on wet and cool the rest of the week. Corn has started coming up. Ours took about eight days to get out of the ground and some of the early-planted corn is taking 14 to 15 days. The corn that is up is pretty yellow. Seems like a good stand. Plants went in very well and the crops are off to a good start. I heard of some beans that were planted, but I have not seen any of those yet. Doug Uphoff, Shelbyville, Shelby County: Finished corn before the rain came, thanks to a good friend and neighbor, Ashton Waggoner, after we had planter problems. Still cold after the rain, but corn has begun to emerge. Last rains amounted to 2 inches. Rain for the month of April totaled 5.5 inches. We’ve been preparing for soybean planting and will plant as soon as it warms up. Looks like it’s going to be this week, so hopefully we will be back in the fields soon. I know there are quite a few that still have corn to plant in the county. Be safe! David Schaal, St. Peter, Fayette County: Rains came in Sunday (April 27) and continued into Monday morning. The rain event left 2.2 inches in my gauge. The next day or two, it showered, so the total rainfall for the week was around 2.5 inches. It was also chilly, cloudy, damp and windy. No fieldwork has taken place since the last report. The corn that was planted before the rains moved in seems like it is going to emerge all right. It is taking 10 to 12 days to spike through the soil. Wheat in the area is looking good to excellent. Hoping for drier, warmer weather and the forecast is looking somewhat favorable for this week. Have a good week. Jeff Guilander, Jerseyville, Jersey County: A wet and cool week brought planting progress to a halt. The first corn planted took almost two weeks to get out of the ground, but we are hoping the rest might come up a little faster. I imagine there will be some beans planted early next week if the forecast holds. Dan Meinhart, Montrose, Jasper County: Some corn was planted on Friday and Saturday (April 25-26). On Sunday afternoon (April 27), the rains moved in leaving from 2 to 7 inches of rain. Consequently, no fieldwork has taken place since then. The rivers are bank-full, and in some cases, out of their banks. The temperatures have cooled off. The highs were in the mid-50s and the lows in the lower 40s. The wheat is looking good.
Page 7 Monday, May 5, 2014 FarmWeek Dave Hankammer, Millstadt, St. Clair County: No fieldwork occurred last week due to 1.5 inches of rain we received at the beginning of the week. Cooler temperatures and overcast skies prevented the soil from drying out. The nighttime low reached down to the upper 30s and the daytime highs were in the low 50s. Corn planted prior to and during Easter weekend has emerged and is pale in color due to lack of sunshine. Hopefully, forecasts of warmer, drier weather in the next few days will allow us to return to the fields and improve growing conditions. Local grain bids are corn, $5.03; soybeans, $14.81; wheat, $6.93. Have a safe week. Kevin Raber, Browns, Wabash County: Rainfall amounts of 3 inches or more have shut down fieldwork. Some early-planted corn has emerged, but anything in the ground will be struggling with the saturated soils, cold nighttime temperatures and cool overcast days. Wheat looks good, but conditions are not very favorable for it.
Randy Anderson, Galatia, Saline County Either the calendar is a month off or this weather is really messed up. Feels more like the end of March than the first of May. We should have plenty of flowers for May, too. Last week’s total at my place was around 2.6 inches. We are WET! No fieldwork for last week, and we will be lucky if we can get into fields by the middle to end of this week. When we do get in the field, the auto steer will be a real help for the long hours ahead. Wheat looks good. Flag leaf is right there, so we will be looking for any diseases.
Ken Taake, Ullin, Pulaski County: After receiving about .4 of an inch of rain Thursday night (April 24), we managed to get back in the fields on Saturday (April 26). There were a lot of people spraying and fertilizing. A little bit of corn was planted on Saturday (April 26). Between Sunday and Monday, we received 2.7 inches of rain with some heavy showers and wind. We were hoping to get back in the fields Saturday, but probably a better guess would be Monday. There is a wide range of corn planting progress over the area depending on field conditions. A week of good weather is forecast, so I suspect a lot of progress will be made by the time I call in my report at the end of the week. Please take time and be careful during this busy season.
Opportunity knocks, Peoria County farm entrepreneur answers BY KAY SHIPMAN FarmWeek
Peoria County Far m Bureau member, cattleman, meat processor and entrepreneur Dave Alwan’s best product? Himself. Alwan’s rapid-fire delivery dovetails with his whirlwind ascension from young man who joined his family’s meat processing business to cattleman/meat company founder promoting his own products on a national reality show. “You get out of life what you work for,” Alwan noted. Recently, he discussed his “Shark Tank” experiences with new and beginning farmer educators from across the country. On the network reality show, aspiring entrepreneurs make business pitches to a panel of potential investors. “I knew we needed exposure and we got exposure. It’s an amazing ride,” Alwan said of the “Shark Tank” aftermath on his company, Echo Valley Meats. By sharing his story, Alwan
unintentionally illustrated the seizing of opportunities when they’re presented. His 2012 long shot appeara n c e o n “ S h a r k Ta n k ” — 54,000 people auditioned but only 100 appeared on the show — didn’t result in an investment offer. But Alwan
FarmWeekNow.com
Go to FarmWeekNow.com to view a video with Dave Alwan discussing Echo Valley Meats.
has captured the positives. All of the “Shark Tank” investors order products and gift baskets from Echo Valley; he sold products on the QVC network at the rate of $5,000 per minute; and the national exposure resulted in 87,000 views of his company website and 41,000 orders. Although Alwan knew only 14 days in advance when he would appear on the show, he pre pared for the potential after math and “built a new we b s i t e i n 1 4 d ay s,” h e explained. Since then, he constructed a third website to han-
State CAFO rules move to oversight committee
BY KAY SHIPMAN FarmWeek
The Illinois Pollution Control Board (PCB) completed another phase of work on state rules for Concentrated Animal Feeding Operations (CAFO) and forwarded the proposed rules to a bipartisan legislative oversight committee. The Joint Committee on Administrative Rules (JCAR) reviews administrative rules developed by state agencies. The Illinois Environmental Protection Agency proposed the CAFO rules. Illinois Farm Bureau and other members of an agriculture coalition have sought state CAFO rules consistent with federal rules. PCB ended its second-notice period and forwarded the 158-page document to JCAR. “Illinois Farm Bureau is reviewing the information,” said Lauren Lurkins, IFB director of natural and environmental resources. In Illinois, IEPA has authority over National Pollution Discharge Elimination System (NPDES) permits required for CAFOs. The agency proposed NPDES permit rules for certain CAFOs in Illinois. JCAR members will review the proposed rules. They may state that they have no objection to the proposed rules, object or make recommendations to the proposed rules.
dle the electronic commerce at {echovalleymeats.com}. Alwan followed his business intuition and added products and services. For example, he started a mail order business and hand delivered gift boxes to local corporate offices, which led to a huge gift box order from a major corporation. That corporation then asked Alwan to cater meals for its corporate jets. “That’s how I got into catering. I did 67 weddings in one year,” Alwan explained. From his start raising and processing his own cattle and marketing those value-added products, Alwan continues to raise cattle and operate his retail and wholesale businesses as well as catering, marketing corporate gifts and fundraising products, and operating a mail order business. Alwan recommended farmers who consider expanding to use caution. “Make sure you have your costs in line and your structure in line before yo u a t t e m p t t o g r ow yo u r business,” he said. “And never go too far into debt.”
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.
Above, Peoria County meat processor and entrepreneur Dave Alwan captures additional value for Echo Valley Meats by marketing products directly and as the cornerstone of different services. Right, a tray of Echo Valley Meats steaks bears the company logo in the Bartonville retail shop. (Photos by Cyndi Cook)
Feather meal energizes swine Hydrolyzed feather meal, a coproduct of the poultry processing industry, can be used as a protein source for swine, according to University of Illinois researchers. Hans Stein, a U of I animal sciences researcher, teamed with Lee Chiba, a professor of animal nutrition at Auburn University, to give pork producers more information about the nutritional value of this feed ingredient. Hydrolyzed feather meal processing lacks standardization, so feather meal processed in different plants may vary in nutritional value. Because feather meal may contain coagulated poultry blood, each source was included in the experiment both without and with added blood. Research results indicated the digestibility of crude protein and every amino acid was different among the four sources of hydrolyzed feather meal if no blood was added. The addition of blood to feather meal had inconsistent effects on the digestibility of amino acids. “Processing conditions such as steam pressure and time of hydrolysis can affect the quality and digestibility of protein and amino acids,”
Stein explained. “It is also possible that differences in the timing of blood addition, before or after hydrolysis of the feathers, have an effect on amino acid digestibility.” Other results of the experiment indicated a tendency for phosphorus digestibility to differ among the four feather meal sources, but in all cases, digestibility was greater than 89 percent for feather meal without blood. The concentration of metabolizable energy ranged from 4,206 to 5,474 kilocalories per kilogram of dry matter with no consistent response to the addition of blood. However, significant differences occurred among the four sources of feather meal. These values are greater than values previously published for hydrolyzed feather meal. The Alabama Agricultural Experiment Station of Auburn, Ala., and Evonik-Degussa Corporation provided financial support for the research. The feather meal was donated by the four members of the Poultry Protein and Fat Council. For more information about the study, visit {jour nalofanimalscience.org/content/91/12/5829.full}.
EMERGING ISSUES
FarmWeek Page 8 Monday, May 5, 2014
‘AG-CITED’ DAY ON THE FARM
Study: Mandatory labeling not needed No science-based reason exists to require mandatory labeling of food made with genetically modified organisms (GMOs), according to a study released last week by the Council for Agricultural Science and Technology (CAST). The study also found that mandatory labeling laws could increase U.S. food costs, cause problems with trade agreements and ultimately, end up in court. “Bottom line: We need better communication regarding the scientific issues and the possible legal and economic consequences of mandatory GMO food labels,” Van Eenennaam, task force chair of the CAST report, said in a statement. The release of the study, “The Potential Impacts of Mandatory Labeling for Genetically Engineered (GE) Food in the United States,” comes as states and local governments across the country consider GMO labeling laws. The Vermont legislature recently became the first to pass a mandatory labeling law. Illinois Farm Bureau policy supports U.S. Food and Drug Administration science-based labeling if a food is significantly different than its traditional counterpart or if a specific constituent is altered nutritionally, or causes allergies. IFB also supports a bill
introduced in the House that would prohibit individual states, and any local government, from passing rules that require mandatory GMO labeling. Among the study’s findings: • All domesticated crops and animals have been genetically modified in some way. “Wideranging evidence shows that GE technology is equally safe to conventional breeding,” the study says. • Mandatory labeling laws don’t allow consumers to choose products based on traditional marketing and promotion efforts. • State mandatory labeling laws could be invalidated because they conflict with preemptive federal authority and potentially violate First Amendment rights. “Litigation seems a likely outcome if states pass mandatory labeling laws,” according to the study. • Mandatory labeling would increase food costs in the United States. “If, as in other countries, sellers move to non-GE offerings in response to mandatory labeling, food costs could rise significantly and these increased costs would exact a greater burden on low income families,” the study says. “If, on the other hand, food suppliers choose to label virtually all products as containing GE without testing or segregation, increases in costs might be minimal.”
Port infrastructure — and the ship, barge, rail, truck and river deliveries in and out of them — will be the focus of this year’s Illinois Farm Bureau Market Study Tour. The five-city tour — the first planned inside the United States — will be held Aug. 30Sept. 6. The itinerary includes stops at some of the busiest U.S. ports: Galveston/Port Arthur, Texas; New Orleans; Miami; Savannah, Ga.; and Norfolk, Va. “One of the goals of the program is to develop leaders who can talk about international trade issues, marketing issues, trade disputes and competitiveness, and infrastructure is so key to that,” said Tamara Nelsen, IFB senior director of commodities. IFB typically hosts more than a dozen farmers on the
market study tour. Applications were sent to county Farm Bureaus last week. They will be scored by a panel of judges. Nelsen said participants will get a firsthand look at the state of U.S. infrastructure and be able to assess whether the country is “positioned to remain a major player in the global scene.” “We’ve seen so much infrastructure improvement in Panama, in Hong Kong, in China, where you hear about government spending billions of dollars,” Nelsen said. “When you come to the United States, you don’t hear about the federal government paying for anything. You hear about the city of Miami, or the port authority of New Jersey ...” For more information on the tour, contact Nelsen at tnelsen@ilfb.org or (309) 5573112.
BY DEANA STROISCH FarmWeek
Above, Ric Coop, Cass-Morgan Farm Bureau (CMFB) Board director, tells fourth graders about technology used to plant and har vest corn and soybeans. About 450 fourth graders from 13 area schools recently visited the Hadden Family Farm near Jacksonville as part of the CMFB’s Ag-Cited About Agriculture program. Left, Darrell Roegge, a past CMFB president, introduces a student to donkeys. Implemented 18 years ago, Ag-Cited includes five visits per class each year by volunteers Jan Carleton and Sue Freeman. The program concludes with a farm tour hosted by Illinois Farm Bureau District 10 Director Dale Hadden. About 25 volunteers from the board, Young Leaders, foundation board and other members assist with the farm tour. (Photos by Dee Dee Gellerman, IFB Region 3 manager)
Applicants sought for 2014 IFB Market Study Tour
IFB IN ACTION
Page 9 Monday, May 5, 2014 FarmWeek
Safe disposal offered for unwanted medications
Thanks to efforts by Wayne County Farm Bureau members, county residents can now safely dispose of unwanted medications. Farm Bureau spearheaded installation of a permanent medicine disposal box inside the main entrance of the Wayne County Sheriff ’s Department in Fairfield. BY DOUG ANDERSON
Placement of the box coincided with the Drug Enforcement Administration’s (DEA) Drug Take Back Day April 26. “Without Farm Bureau’s help spearheading this and getting it in here, it would not have been possible. We are glad to house it and take care of it,” said Mike
Everett, Wayne County Sheriff. According to the DEA, medicines in the home are a leading cause of accidental poisoning, as well as a source for drug abuse in youth. “This is a great win for the Wayne County Coalition Against Drug Abuse (WCCADA), and a great win for the community,” noted Zackary Harrell, director of Prevention Services and Marketing for Southeastern Illinois Counseling Center. In the past, common advice for disposal of unwanted medication suggested flushing them down the toilet. Those drugs get into the water supply as municipal water facilities are unable to filter out all of the contaminants from various drugs. Throwing unwant-
LOCAL ISSUES DISCUSSED
Wayne County Sheriff Mike Everett checks the permanent medicine disposal box located in the sheriff’s department lobby in Fairfield. Wayne County Farm Bureau teamed with the University of Illinois Extension in cooperation with the Wayne County Coalition Against Drug Abuse and the sheriff’s department to provide the service for area residents. (Photo by Doug Anderson)
ed medications in the trash can lead to soil contamination from landfills. Medications dropped in the disposal box get stored securely, and security cameras in the sheriff ’s department monitor the box. Unwanted
medications collected will be shipped to the DEA for disposal. Acceptable items include prescription medications, all over-the-counter medications, pet medications, vitamins and supplements, medicated oint-
ments, lotions, creams and oils, and liquid medication in leak-proof containers. Needles/sharps, syringes with needles, thermometers, IV bags, bloody or infectious waste, personal care products, empty containers, hydrogen peroxide, aerosol cans and inhalers will not be accepted. The medicine disposal box represents a joint project of the University of Illinois Extension and Wayne County Farm Bureau in cooperation with WCCADA and the Wayne County Sheriff ’s Department. Courtney Yost, community and economic development educator with the U of I Extension, secured funding for the box through a grant from Illinois-Indiana Sea Grant. For more information on the impact of prescription drugs on the environment and communities, visit {unwanted meds.org}.
Doug Anderson serves as Wayne County Farm Bureau manager.
It’s all in the hay. Lauren Lurkins, Illinois Farm Bureau director of natural and environmental resources, far right, discusses education funding, transportation and other issues with county Farm Bureau managers from central Illinois. More than 60 managers took part in three issues management discussions last week. (Photo by Mike Orso)
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A CLOSER LOOK
FarmWeek Page 10 Monday, May 5, 2014
Adding acres may not boost bottom line Plant clinic begins 39th year crop rotation increases compared to a control group. All revenue was attributed to the accrual method of accounting. Farms were sorted into five groups — more than 75 percent corn acres, 66 to 75 percent, 56 to 65 percent, 46 to 55 percent and less than 45 percent. The more than 75 percent corn acreage group showed a 2bushel-per-acre advantage and $91.67 per acre revenue in 2013 — the highest of all groups. But the group posted a negative $42.57 per acre in fertility costs. Little, if any, yield advantage or disadvantage resulted due to a higher percentage of corn acres. In fact, higher percentages of corn production led to increased costs per acre for fer-
Thinking of adding more corn acres to your rotation? Illinois Farm Business Farm Management Association (FBFM) data from four of the last five years indicate higher costs overcome any revenue advantage gained from growing more corn. A trio from FBFM — Brandy Krapf, professional development coordinator; Dwight Raab, state coordinator; and Bradley Zwilling, farm business analyst — looked at records from a group of central Illinois farms operating on higher productivity soils during 2009-13. They reviewed yields, crop returns, selected costs and residual management returns as the percentage of corn acres in a
tilizer, pesticides and seed. Power and equipment costs exhibited the same trend. The same trend occurred in 2009-11. The 2012 season, marred by drought, proved the only exception. The more than 75 percent group posted the greatest accrual revenue at $125.83 per acre, and the highest management return advantage of $13.96 per acre. FBFM researchers noted a crop insurance harvest price of $7.50 per bushel no doubt had an impact, assuming a revenuebased crop insurance policy was in place. For the full study, visit {farm docdaily.illinois.edu/2014/04/is -there-an-advantage-to-morecorn-acres.html}. Â
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Nematode processing also requires about one to two weeks, depending on the procedure. The final diagnoses and invoices are sent back through U.S. mail and email. Each sample for diagnosis should include a sample form, symptomatic plant, protected root ball and payment. When submitting a sample, provide as much information as possible. Fees vary depending on the procedure necessary. General diagnosis, including culturing, costs $15, nematode analysis for SCN or PWN $20, and specialty nematode testing (such as corn) $40. Payment should be included with the sample for diagnosis to be initiated. Checks should be made payable to the University of Illinois or to the Plant Clinic. Samples can be sent to U of I Plant Clinic, S-417 Turner Hall, 1102 S. Goodwin, Urbana, Ill. 61801. Samples can also be dropped off at that location Monday through Friday 8 a.m. to noon and 1 to 4:30 p.m. Samples can be placed in the green drop box just outside of S-417 after hours. For more information, visit{web.exten sion.illinois.edu/plantclinic/}.
IAITC golf outing set
Grab your golf clubs and get ready to hit some winning shots for Illinois Agriculture in the Classroom (IAITC). June 12 marks the 18th IAA Foundation IAITC Golf Outing at Elks Country Club and Wolf Creek Golf Club at Pontiac. Golfers can register individually or as a foursome. IAITC helps students understand the important role agriculture plays in their daily lives. Driving ranges will open at 9 a.m. with a shotgun start at 10:30 a.m. Coffee and doughnuts along with a box lunch and steak dinner will be served. An auction will be conducted after the dinner banquet. Golfers who register by June 1 will be eligible for an early bird prize drawing. Individuals may register for $130 each. A family rate for youth ages 18 and under playing with a parent or grandparent costs $200. Donations will be accepted from anyone who cannot participate in the golf outing. To register, visit {iaafoundation. org}.
Page 11 Monday, May 5, 2014 FarmWeek
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EDUCATION
FarmWeek Page 12 Monday, May 5, 2014
IAA Foundation names 2014-2015 scholarship winners Illinois and other Midwestern students will have help paying for college thanks to scholarships awarded by the IAA Foundation. This year, the IAA Foundation, the charitable arm of the Illinois Farm Bureau, awarded more than $138,000 to 62 students pursuing degrees in agriculture-related fields, based on their academic ability, leadership involvement, professional career goals and financial need. “This year was an exciting year for us because we were able to award more scholarship dollars than ever before,� said Susan Moore, IAA Foundation director. “We’re confident this year’s recipients are the future of agriculture here in Illinois, and we’re pleased to help support them in their educational pursuits.� IAA Foundation Top Scholars each receiving $7,500 include Hannah Donoho of Mahomet, daughter of Kevin and Brenda Donoho, University of Illinois; Abby Marten of Effingham, daughter of Kevin and Cheri Marten, U of I; and Krista Temple of Fulton, daughter of Don and Karen Temple, U of I. Bradley Braddock of Patoka was named the Illinois Farm Bureau Legacy of Leadership scholarship recipient and will also receive a $7,500 scholarship. Attending Illinois State University, he is the son of Harry and Angie Braddock.
The recipient of the $1,100 IAA Foundation General Scholarship is Lance Curtis, Prairie City, son of Ken and Kim Curtis, U of I. The recipients of the $1,000 IAA Foundation General Scholarship are: Frazier Curless, Pittsfield, son of Brian and Sandy Curless, U of I; Jennifer Jackson, Jacksonville, daughter of Mark and Donna Jackson, Western Illinois University (WIU); and Seely Sayre, Arenzville, daughter of Tim and Tracie Sayre, U of I. The IAA Foundation has awarded more than 800 scholarships since 1989. “We seek to expand our scholarship program each year in order to support more students as they pursue careers in agriculture,� Moore said. “Through the help of generous gifts from farm families, commodity groups, agribusiness, Illinois Farm Bureau members and others who support our industry, we’ve been able to do just that.� Receiving a $6,000 Illinois Soybean Association Crop Science Scholarship are: Danielle Cooney, Deer Grove, daughter of Tom and Joan Cooney, U of I; Seth Strom, Victoria, son of Jeff and Victoria Strom, U of I; and Kayla Wiedau, Belleville,
daughter of Steve Wiedau and Laura Matreci, Southern Illinois University-Carbondale (SIU-C). Students awarded a $5,000 Illinois Soybean Association Crop Science Scholarship are: Tyler Pokojski, Centralia, son of Matt and Beth Pokojski, SIU-C; and Allison Thornton, Greenfield, daughter of Samuel and Tracy Thornton, WIU. Students receiving a $4,000 Illinois Soybean Association Crop Science Scholarship are: Tyler Barringer, Decatur, son of Michael and Kathleen Barringer, U of I; Brent Mansfield, White Hall, son of Andrew and Sally Mansfield, U of I; and Kaleb Snider, Richland, son of Duane and Tiffany Snider, U of I. Recipients of the Fletcher A. Gourley, Leonard Southwell and Roger Capps Memorial Scholarships, awarded to children of Prairie Farms Dairy employees and patrons, in the amount of $2,000 each are: Darci Bilbruck, Carlinville, daughter of Randy and Tracy Bilbruck, SIU-Edwardsville (SIU-E); Jessica Brehm, Durango, Iowa, daughter of Steve and Sharon Brehm, University of Northern Iowa; Christopher Callahan, Carlinville, son of Patrick and Barbara Callahan, South Dakota State University;
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Hilary Charlet, Kewanee, daughter of Kevin and Dawn Charlet, Illinois Wesleyan University; Katelyn DeNap, Collinsville, daughter of Daniel DeNap and Lana Hediger, Missouri State University; Chelsea Hargrove, Waterloo, daughter of Donald and Linda Hargrove, SIU-E; Ethan Haywood, Hastings, Mich., son of Luke and Renee Haywood, Michigan State University; Joshua Laesch, Greenville, son of Steve and Emily Laesch, Rose-Hulman Institute of Technology; Koby Limbach, Henley, Mo., son of Larry and Dayna Limbach, University of Missouri; Bailey Schmidt, Carlinville, daughter of Michael and Lori Schmidt, U of I; Lauren Unverfehrt, Okawville, daughter of Jim and Lori Unverfehrt, SIU-E; and Laura Wente, Sigel, daughter of Timothy and Betty Wente, University of Missouri. Receiving a $1,500 Greg Carney Scholarship is Sarah Moore, Jerseyville, daughter of Ronald and Lori Moore, U of I. Those students receiving $1,200 Dorothy and Wilhelmine Ratermann Memorial Scholarships are: Emma Anderson, Hillsboro, daughter of Jason and Jennifer Anderson, SIU-C; Amanda Barr, Altamont, daughter of Clyde and Barbara Barr, Oklahoma Panhandle State University; Evelyn Epplin, Cutler, daughter of David and Susan Epplin, SIU-C; Katelyn Fryman, Ellery, daughter of Wesley and Kelly Fryman, SIU-E; Claire Geiger, Alhambra, daughter of Steven and Dena Geiger, U of I; Olivia Geiger, Alhambra, daughter of Steven and Dena Geiger, U of I; Courtney Gerstenecker, daughter of Robert and Tamra Gerstenecker, Kaskaskia College; Caleb Grohmann, Red Bud, son of Freddie and Leslie Grohmann, University of Missouri; Jesse Haarmann, Effingham, son of Thomas and Janet Haarmann, U of I; McKenzie Magnus, Carlyle, daughter of Scott and Debbie Magnus, Southeast Missouri State; Lindsey McKinzie, Albion, daughter of Shad and Merilee McKinzie, Wabash Valley Community College; Ashley Meinhart, Montrose, daughter of Keith and Denise Meinhart, U of I; Ryan Meinhart, Wheeler, son of Rick and Nancy Meinhart, U of I;
Jacob Meisner, Piasa, son of John and Donna Meisner, U of I; Taylor Musgrave, Willow Hill, daughter of Todd and Marla Musgrave, U of I; Kimberly Perkins, Effingham, daughter of Keith and Michele Perkins, Lake Land College; Lindsay Ratermann, Breese, daughter of Randy and Barb Ratermann, Quincy University; Karli Robinson, Shelbyville, daughter of Bill and Ronda Robinson, U of I; August Schetter, Brighton, son of Dan and Mary Jo Schetter, U of I; Emily Tanner, Stonefort, daughter of Brian K. and Tempa J. Tanner, St. Louis College of Pharmacy; Renee Tillman, Altamont, daughter of Randy and Carol Tillman, U of I; Jencie Watson, Highland, daughter of Beverly and Wendell Watson, Harding University; Faith Wendte, Altamont, daughter of Roy and Christine Wendte, U of I; Benjamin Westrich, Marion, son of Steve and Amy Westrich, SIU-Carbondale; and Kayley Woker, Greenville, daughter of Craig and Jan Woker, Kaskaskia Junior College Receiving the Robert F. Rouse Scholarships worth $1,100 are: Lukas Beelow, Mundelein, son of Duane and Karen Beelow, SIU-C; and Natalie Didier, Indian Creek, daughter of Dave and Donna Didier, U of I College of Veterinary Medicine. Awarded a $1,000 William J. Kuhfuss Memorial Scholarship is Kendi Sayre, Arenzville, daughter of Tim and Tracie Sayre, Lincoln Land Community College. Receiving the $1,000 Dale E. Butz Scholarship is Chet McClure, Gibson City, son of David McClure and Ellen Nord, U of I/Parkland College Pathways. The recipients of Heartland NAMA, Steven A. Hammerschmidt Memorial Scholarships in the amount of $1,000 are: Rachel Hoeft, Bloomington, daughter of Scott and Shawn Hoeft, Illinois State University; and Shelby Peterson, West Point, daughter of Steve and Valerie Peterson, U of I. Students receiving the $1,000 St. Louis District Dairy Council Scholarships are: Jessica Telgmann, Strasburg, daughter of Don and Kim Telgmann, U of I; and Morgan Wendling, Altamont, daughter of Kevin and Jennifer Wendling, SIU-C.
FROM THE COUNTIES
Page 13 Monday, May 5, 2014 FarmWeek
B
UREAU — Ag service award applications are being accepted at the Farm Bureau office. Contact the Farm Bureau office at 875-6468 for selection criteria. Nomination deadline is May 15. • Bureau and Lee County Farm Bureaus will co-host a golf outing to benefit Agriculture in the Classroom beginning at 9 a.m. June 20 at Timber Creek Golf in Dixon. Cost is $200 for basic registration, $225 for super registration and $250 for premium registration. Call the Farm Bureau office at 8756468 to register by June 6. • Farm Bureau will cosponsor a tractor trek at 8 a.m. June 21. Cost is $50. All proceeds will benefit Agriculture in the Classroom. Contact the Farm Bureau Foundation to register by June 6. • The Young Leader Committee farm pool listing is complete. The list of residents interested in full- or part-time agricultural-related labor is available at the Farm Bureau office. Contact the Farm Bureau office at 8756468 for more information. OOK — Farm Bureau will host a concealed carry course from 9 a.m. to 5 p.m. May 17-18 at the Farm Bureau office for members. Cost is $200 (16-hour course), $150 (12-hour course) and $100 (8-hour course). A discount will be offered for spouses registered. Call Tim at 815-5453978 for additional information. Register at {allccw. com/event-registration? ee=75} by May 12. • Farm Bureau will offer soil testing. Cost for one test
C
Tuesday: • “Farm Week: The Early Word” • Jim Angel, Illinois State Water Survey: ag weather • Charles Frances, Acclaim Press: sesquicentennial farms book • Jonathon Monken, Illinois Emergency Management Agency • Toni Dunker, Advanced Trading: livestock update Wednesday: • Mark Schleusener, National Agricultural Statistics Service: Census of Agriculture data • Tom Turpin, Purdue University: increasing the monarch butterfly population • Darien Kruss, Will County Beekeepers Association: thriving Will County honeybee hives
is $20 for members and $30 for nonmembers. Cost for two tests is $30 for members and $40 for nonmembers. Call Melanie at 708-354-3276 for more information. RUNDY — Farm Bureau will offer a summer internship to a college student interested in pursuing a career in the agriculture industry. Resume and cover letter may be mailed to the Farm Bureau office at 4000 N. Division St., Morris, Ill., 60450 by May 12. For position details, contact Tasha Bunting at 942-6400. EE — Farm Bureau will host a spring cleaning candle sale Thursday to May 31. Cost will be half off. Call the Farm Bureau office at 857-3531 or email michelle. leecfb@comcast.net for more information. ONTGOMERY — Prime Timers will host a luncheon meeting at noon May 21 at the Farm Bureau building. Donna Roach and Don Clausen will perform. Farm Bureau members 55 and older are invited to attend. Cost is $9. Call the Farm Bureau office at 5326171 for reservations by May 16. ASHINGTON — The Women’s Committee will co-sponsor a blood drive from 2:30 to 6:30 p.m. May 15 at the Ashley Community Building. Call the Farm Bureau office at 327-3081 for more information.
TAKING A BREAK
G L
M W
“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity that is open to all members, contact your county Farm Bureau manager.
• Linda Olson, Illinois Farm Bureau: local field mom groups Thursday: • Scott Sigman, Illinois Soybean Association: transportation • Mike Doherty, IFB: Census of Agriculture breakdown • Adam Pollet, Illinois Department of Commerce and Economic Opportunity: Economic Development for a Growing Economy program Friday: • Don Schaefer, Mid-West Truckers Association: trucking industry • Kevin Rund, IFB: transportation issues • “Horse Talk” To find a radio station near you that carries the RFD Radio Network®, go to FarmWeek Now.com, click on “Radio,” then click on “Affiliates.”
Schuyler County farmer Keaton Dyche of Rushville takes a field break with Farm Bureau Manager Kelly Westlake. The county Farm Bureau distributed fruit, water and other snacks to farmers along with slow moving vehicle signs. Six Farm Bureau members won fire extinguishers provided by Farm Bureau and COUNTRY Financial Representative Jim Baack. Winners included Chad Kelly, Gary Kennedy, Phillip McNeeley, Dennis Billingsley, Derek Prather and Keaton Dyche. The safety program reminded farmers that they need to recharge themselves during the busy planting season. (Photo by Schuyler County Farm Bureau Ag Literacy Coordinator Jean Barron)
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PROFITABILITY
FarmWeek Page 14 Monday, May 5, 2014
Finding economic benefit in fungicide applications
Over the course of the winter and early spring, I’m sure many have been nervously watching the price of corn for 2014, and making crop protection decisions, notably fungicide, based on their perception of profitability. There is obviously a negative correlation BY TOM WHALEN
with commodity prices and the use of fungicide in both corn and soybeans. It’s apparent that an application of fungicide may become one of the first things dismissed in a crop protection plan. However, investing in a product that increases yield can actually reduce your pro-
Milk prices set another new high The Class III price for milk adjusted to 3.5 percent butterfat for the month of April was announced at $24.31 per hundredweight. This new, all-time high posts nearly a $1 increase over the previous month’s announcement. Dairy demand, especially overseas in China, has stayed very strong and has really supported milk prices these past several months. The spring flush is upon us, and as milk supplies start to increase, a milk price drop will likely correct these record-setting markets. All indications are that China’s appetite for U.S. dairy products has been quenched for now, and another round of aggressive buying will have to happen to spur prices again.
duction cost per bushel. Reducing the cost per bushel and lowering risk may be significantly more important with lower commodity prices than when we have higher prices. Luckily, we have seen an increase in Tom Whalen commodity prices over the last few months. Therefore, the economic benefit of using a fungicide has increased. Many fungicide manufacturers boast a yield benefit of 12 bushels or more per acre versus an untreated acre. There has been much more interest in an early application of fungicide during the V3 to V7 growth stages, and rightfully so. It helps
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-$80.10 $48.01 40 lbs. (cash) $120.00-$140.00 $128.82 Recipts
This Week 64,115 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 62,062
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change NA $109.15 NA NA $80.77 NA
USDA five-state area slaughter cattle price (Thursday’s price) Steers Heifers
This week $148.55 $148.00
Prev. week $147.16 $146.86
Change $1.39 $1.14
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 $179.56 $179.10 $0.46
Lamb prices Negotiated, wooled and shorn, 100-169 lbs. for 142-183.50 $/cwt. (wtd. ave. 167.89); 174-224 lbs. for 140-155 $/cwt. (wtd. ave. 149.38)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 4/24/2014 9.3 23.2 45.5 4/17/2014 5.7 18.7 64.3 Last year 9.0 31.5 11.6 Season total 1519.5 1043.8 1101.9 Previous season total 1246.3 903.1 482.2 USDA projected total 1580 1175 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Tom Whalen serves as GROWMARK’s crop protection marketing manager. His email address is twhalen@growmark.com.
60s across most of the state,” he continued. “The concern now is subsoil moisture.” Nearly one-third of subsoil moisture (30 percent) was rated short or very short last week. The rest was rated 65 percent adequate and just 5 percent surplus. Soil temperatures were cold due to another month of below-average temperatures in April. The temperature in the state last month averaged 51.9 degrees, .7 of a degree below average. It was the sixth consecutive month of below-average temperatures dating back to last November. Fortunately, the forecast this week calls for a significant warm up, although isolated showers still could delay planting at some locations. “It (the forecast) looks more promising this week temperature-wise,” Angel said. An outbreak of tornadoes last week in Arkansas, Oklahoma, Kansas, Nebraska and Missouri served as a reminder that temperature swings in coming weeks
could fuel severe weather. About two-thirds of tornado touchdowns in Illinois each year occur from March through June, Angel noted. So far this year, 18 tornadoes occurred in Illinois, most of which touched down during a Feb. 20 outbreak. “It’s been pretty quiet so far. The cold weather pattern (of previous months) wasn’t favorable for severe weather,” Angel said. “But don’t get too complacent” as the severe weather season is just half over. Looking ahead, the Climate Prediction Center issued an El Nino watch for this summer. It predicted chances of El Nino (above-average temperatures in the Pacific Ocean) developing this summer exceed 50 percent. “If (El Nino) comes later in the growing season, its effect (on crops) likely won’t be that great,” Angel said. “But it could be beneficial. We (in the Midwest) tend to have milder temperatures during an El Nino summer.”
attention recently. Harvesting 1,000 acres of downed corn at 3 mph versus healthy, upright corn at 5 mph can improve not only time efficiency, but fuel efficiency, too. As we look at these challenging decisions, I encourage everyone to invest in opportunities that offer higher production potential, such as a fungicide application. After all, if commodity prices are lower, we don’t plan on producing lower yields. By investing in fungicides and other methods for higher production, we look not only for the end result to obviously be increased yield, but also to lower production costs per bushel.
Soils receive recharge; warmer days ahead BY DANIEL GRANT FarmWeek
M A R K E T FA C T S
defend against stalk diseases. And if we’re already making the application across the field with a herbicide at this stage, why not incorporate the fungicide with potential of an additional five or more bushels? The goal in measuring profitability of a fungicide application is obviously obtaining a yield benefit that outweighs the investment in the cost of the fungicide and application. However, there may be some other benefits that add to the profitability equation when evaluating the benefit of using a fungicide. For instance, increased harvest efficiency. Assuming some standard costs associated with harvesting corn, we can see a reduced cost per acre in harvesting by covering more acres in less time. One fungicide manufacturer brought the following scenario to my
Concerns about dry soils dissipated last month as widespread rainfall saturated the state. Statewide precipitation last month averaged 5.11 inches, 1.33 inches above average, according to Jim Angel, state climatologist with the Illinois State Jim Angel Water Survey. Much of the northern half of Illinois last month received 3 to 5 inches of moisture while much of southern Illinois received anywhere from 5 to 10-plus inches. The highest total around the state was 12.96 inches in Harrisburg. “We’ve recovered from both a soil moisture and soil temperature standpoint,” Angel told FarmWeek. “Soil moisture now looks pretty good, and the soil temperature is up to the 50s and
CME Group implements variable price limits
Daily price limits for crops now can adapt to changing market conditions. The CME Group last week (May 1) began using variable daily price limits for grains and oilseed futures. The new variable trading limits, which apply to all grain and soy contracts at the Chicago Board of Trade, are based on market prices and set twice a year on May 1 and Nov. 1. The limits will be determined using a 45-day average settlement price. The initial daily trading limits are 35 cents per bushel for corn, $1 for beans and 45 cents for wheat. The previous limits were 40 cents for corn, 70 cents for beans and 60 cents for wheat. However, if prices reach the initial price limit the prior day, expanded price limits of 55 cents for corn and $1.50 for soybeans take effect.
The new price limit mechanism offers more flexibility and transparency in the market, according to CME Group. It essentially allows price limits to expand during times of high prices and retract when prices decline. “It should be a generally good price discovery mechanism,” said Rich Feltes, vice president of research at R.J. O’Brien and Associates. “I think it’s well timed and well intended in an era of widely expanded price parameters.” Some traders last week were a bit apprehensive, though, as the price limit changes took effect. “The question on everyone’s mind is what will the new margin requirements be at the extended limits,” Feltes said. CME Group as of last week hadn’t announced changes to margin requirements. — Daniel Grant
PROFITABILITY
Page 15 Monday, May 5, 2014 FarmWeek
CASH STRATEGIST
Red meat demand struggles
No matter how the industry tries to “sugarcoat” the situation with red meat this year, demand for it is struggling. One can trace the situation to the tighter supply of cattle, the PEDV issues in the hog industry and the impact of the winter. But even as prices have come down at the wholesale level, demand for meat is best termed mediocre at best. We believe the current repercussions are tied to the surge in prices for both major red meats this winter. Both shot sharply higher before end users could get much, if any, of their forward risk covered. The lack of significant build in the long commercial position in both hog and cattle futures this winter tends to reflect that reality. That’s not necessarily unusual. If you look at droughts that have changed grain prices as much and as quickly as the wholesale meat prices changed this winter, end users rarely get themselves well protected against the steep price change. It’s not until prices begin to subside that demand problems start to become apparent, and even then, it’s like “divining the pattern in tea leaves” as none
of the changes are easily apparent. The action in prices is the only useful guide in seeing that something had changed. But grasping the retailers’ situation is important to understanding what might be occurring. Going into the situation, their margins were already very tight. Then, these extraordinarily high prices were thrust upon them. Retailers had three choices. The first was to pass the sharply higher prices on to the consumer, a move that would likely have severely disrupted movement, causing increased spoilage/waste. They could have left retail prices unchanged, absorbing the losses, but those losses would have been significant. They also had a choice of altering the package size to keep the “package cost” acceptable, while helping manage the higher prices they were being forced to pay. We think it was a combination of all three, but believe the latter may be more widespread than believed. And that is important. It’s a change that could last beyond the current high prices. That has negative repercussions longer term as it will undermine per capita demand for meat. And per capita consumption has already fallen from 220 pounds in 2007 to an estimated 200.6 pounds for 2014.
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Corn Strategy
ü2013 crop: Export business remains robust, but new sales are still below levels noted earlier this winter. If the planting pace doesn’t improve soon though, it could spark more aggressive buying. Nevertheless, we’d still use strength to get to recommendations. ü2014 crop: Use rallies above $4.95 on December futures to make catch-up sales. We expect another pricing opportunity yet this summer, but it may not necessarily be as good. vFundamentals: Other than the broad expanse of the middle of Illinois, corn planting is lagging significantly. It will be interesting to see how much gets accomplished in the drier window into the early part of this week. The industry isn’t yet desperately anxious, but if weather forecasts don’t improve sometime this week, worry will start to rise. But even though this crop is not getting planted early, it doesn’t suggest yields will necessarily be poor. Historically, there’s a poor correlation between planting dates and yield.
Cents per bu.
Soybean Strategy
ü2013 crop: U.S. supplies will be tight this summer, but there are persistent indications of more shiploads of soybeans headed to the U.S. from Brazil. That will cap upside potential in old-crop prices. Price old-crop bushels. ü2014 crop: The longer corn planting drags somewhat, the larger the probability some acreage could get shifted to soybeans. We could recommend another small sale at any time. Check the Hotline frequently. vFundamentals: It seems every day there’s another story about a ship being loaded with soybeans in Brazil being nominated to deliver them to the U.S. There’s talk of as many as another 16 cargoes coming to the U.S. — another 30 million bushels. Argentine harvest has reached 57 percent. Yields are good enough that analysts have raised their forecasts .5 to 1.0 million metric tons. This week’s USDA supply/demand forecasts loom large on the horizon as they will provide the first look at potential for the 2014-15 marketing year.
Wheat Strategy
ü2013 crop: World supplies are reasonably comfortable leaving old-crop wheat prices being driven by newcrop fundamentals. Concern over the health of U.S. hard red winter crop has added a good deal of premium to futures. That is providing producers with a favorable pricing opportunity late in the marketing year. ü2014 crop: Futures were guided last week by news from the Kansas wheat tour. The final tour yield for Kansas was
placed at 33.2 bushels per acre. Last year’s actual yield was 38. The U.S. hard red winter crop will take a hit this year, but other winter crops look good. And global supplies still look abundant. Hold sales at current levels until more is known about planting progress in the northern Plains. vFundamentals: Conditions may deteriorate a little more in the southern Plains, but the delay in planting crops across the northern Plains may be a more important make-orbreak feature for the markets in the short term.
PERSPECTIVES
FarmWeek Page 16 Monday, May 5, 2014
Weighing positives, negatives in your investment decisions
Eldon and Chris Gould, back row center, hosted Chicago-area Illinois Farm Families® Field Moms at their Maple Park hog farm in early April. (Photo by Cyndi Cook)
Through their eyes
Hog farm tour insights from 2014 field moms Editor’s note: Field moms with Illinois Farm Families (IFF) recently toured the Maple Park hog farm of Eldon Gould and his son, Chris. IFF is a coalition of commodity groups for beef, corn, soybeans, pork and Illinois Farm Bureau. Below are excerpts from the Chicago-area moms’ blogs that may be read online at {watchusgrow.org}.
Heather Caulfield, Mount Prospect: I never thought about two very important aspects of hog farming: biosecurity and waste management. These farmers know how to deal with manure in a way that protects the environment, and they also have to follow strict guidelines to ensure the pigs’ safety from viruses and infection. Not only does a farmer have to think about dealing with all that manure, they also must watch what and who they let enter the farm. Keeping the herd healthy is good for the pigs and for the people. After touring the Gould’s farm, I felt a little like I had walked a mile in the farmers’ shoes. I understood some of the reasons why the Goulds operate the way they do. The questions I had regarding the pigs’ welfare were answered and then some. Heather Guido, Oak Park: I had no idea the crops and field size had a direct relationship to the animal operation. I also hadn’t thought about genetics, so I learned that the breeding animals are not the food we eat and also the market pigs aren’t used to breed. Makes sense, but just hadn’t given it thought until now. Sara McGuire, Chicago: I have to admit that I walked in with a huge prejudice against
the use of gestation stalls. What surprised me was the animals seemed happy with their existence. I expected clean, healthy animals for sure, and that is what we saw. I don’t think the Goulds hid anything or sugarcoated anything for the moms. In the end, I am still not sure. Could space for each individual animal be bigger and the farmer still make a profit? I don’t know. What I have told my friends is this — that if you are going to eat meat, you need to be educated about it. Farmers will talk to you, be respectful and you will have all of your questions answered.
Kathy Goers, Round Lake Beach: My goal for this adventure was to walk away with a better understanding of how these pigs ultimately get to our table. The Gould hog farm was the perfect place to begin this. I felt that the pigs were raised to the best of the Gould family’s abilities. It was also nice to hear that a veterinarian checks on the pigs throughout the process to make sure that they are healthy. I will remain a pork consumer after this visit and have a deeper respect for the care and knowledge that goes into hog farming. They utilize science, math, technology and business. Amanda Hinman, Mount Prospect: This is where I learned how consumer preferences as well as
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efficiencies of scale have transformed the farming system. We, as consumers, demand an equal/consistent product. Whether purchasing at a local grocery store, restaurant or the county fair, we want our pork chops to look and weigh roughly the same. The decision to utilize gestational stalls, for example, is completely understandable from the farmers’ point of view. After all, these stalls can be temperaturecontrolled indoors, allow for one-on-one access to feed and water as well as easier tracking of mother pigs to see which ones are better producers. Once again, these measures allow for maximizing the production of standard/consistent piglets ... While I certainly do not plan on becoming a vegetarian any time soon (my body likes its animal protein too much!), I have a renewed appreciation for the tough business decisions and strong work ethic of the family farmer, and especially for the ultimate sacrifice that these animals provide on our behalf. Sarah Decker, Grayslake: First, hog farmers are committed to providing high quality and safe food ... Next, farmers promote compassionate animal care ... Animal rights activists argue that the gestational stalls, housing for sows during pregnancy, put unnecessary stress on the animal. The Goulds, along with other hog farmers, state the sows receive equal amounts of food, water and monitoring. It appears to be the ideal situation for the pig.
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Positive and negative fundamentals, and reactions to specific events drive many investment decisions. Yet with the abundance of data points, investors have to decide which to weigh more heavily and determine their decision to buy or sell. We would probably all agree that geopolitical risks have been elevated recently given Russia’s actions in Ukraine, the unwinding of years of excesses in China and the DEREK constant EuroVOGLER zone growth problems. We would also probably agree that if we focused only on geopolitical risks, we would never buy an equity security again. Instead, we would invest only in U.S. Treasuries so we could sleep well. If we focused on the positives, most investors would likely agree fundamentals have continued to improve in the U.S. as we look at the labor markets, housing, consumer spending and business activity. Those same investors could easily make the case that a sounder economic environment would lead to increasing corporate earnings and higher prospects for the stock market. They would also not feel the need for the ultimate safety derived from U.S. Treasuries, which would cause bonds to decline in value over time. So which is it? Do we have
negative geopolitical risks or positive economic fundamentals? Obviously, we have both. Investors have to weigh which of these factors they want to focus on, since all are constantly present. Over the last couple of weeks, investors as a group decided to concentrate on geopolitical issues and other negative influences. The result has been a minor correction in stock prices of about 4 percent. In terms of stock market adjustments, this is very minor. Could this mini-correction continue? Absolutely, especially given that it has been led by some of the highest valuation, momentum names in the market. But the real question remains: Is this the end of the bull market or even the beginning of a large, broad market selloff ? We think any additional downside will be relatively short-lived. This is a healthy adjustment that is taking some froth out of certain market areas. If the situation in Ukraine deteriorates or the risks in China accelerate, this could certainly become more problematic in the near term and lead to a further selloff, providing an even better buying opportunity. Either way, we still expect the underlying economic growth in the U.S. to be strong enough to support higher stock prices as we progress through the year.
Funding education through taxation
Real estate tax is complicated, unfair and costly to administer. It doesn’t represent ability to pay. It could be replaced with a county income tax based on the 1040 form which is used for federal and state tax. This revenue could be collected in the county and administered to the various needs as real estate tax moneys are now. A good tax system should be based on ability to pay. Income tax is based on ability to pay. It is probably the only tax that is. It only makes moral and common sense to eliminate real estate property tax and replace it with an income tax. Real estate property tax is one of the most inequitable and unfair taxes we have! MARVIN PFISTER Roanoke Editor’s note: Illinois Farm Bureau policy supports the use of a moderate local real property tax to help fund local government.
Derek Vogler serves as vice president of investments with COUNTRY Financial.
LETTER TO THE EDITOR
Editor: We know government-funded programs need tax money to function. It should be very important and every effort needs to be made to see that this money is raised fairly. The real estate tax on homes, businesses, farmland and farm buildings are all taxes for this purpose. Taxing farmland and buildings is not fair because these are investments made by the owner (many times with borrowed money). The farmer doesn’t have the ability to pass this expense on from the business derived from the land and buildings, whereas other businesses do via price increases, etc. Taxing this investment is no more fair than taxing other investments, such as stocks and CDs, would be. Property tax should be eliminated!