EPA’s Clean Power Plan could boost Illinois electric rates. Consider submiting a comment. page 5
Senate Ag Committee members joined NACD offcials in questioning EPA’s water proposal. page 7
Crop markets strengthen amid delays Monday, November 3, 2014
Two sections Volume 42, No. 44
BY DANIEL GRANT FarmWeek
The last week of October proved a treat for most farmers in Illinois. Weather conditions were favorable for harvest and the crop markets, particularly soybeans, strengthened due to the slow harvest pace, logistical issues and tremendous international demand, among other factors. Crop prices this month climbed 12 to 15 percent. Soybeans led the charge as beans for January delivery at the Chicago Board of Trade pushed $10.50 per bushel, the highest level since August, before a retreat late last week. “We came into harvest with all the focus on how big the crops will be,” Joe Camp, AgriVisor risk management specialist, told FarmWeek. “Now, with a somewhat Joe Camp delayed harvest, we watched the soybean complex skyrocket. “Finally, we’re talking about the usage side of the equation,” he continued. “Before this month, (the trade) was so focused on lofty yield expectations.”
Periodicals: Time Valued
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Matt Niedbalski of Nashville finished planting wheat, but state planting lags the average pace. page 3
Southern Bureau County farmer Glen Wright harvests soybeans yielding in the 50s. Wright and his son, Todd, made good soybean harvest progress last week, leaving only double-crop beans left to combine. (Photo by Cyndi Cook)
U.S. farmers as of the first of last week harvested 46 percent of the corn crop (19 percent behind the five-year average) and 70 percent of beans (6 percent behind the average pace). The slow pace of harvest in recent weeks was exacerbated by previously tight soybean stocks entering harvest along with
issues securing enough rail cars to move the crops to end users. “We came into the year with the (soybean) pipeline almost empty, and coupled with the fact harvest has been delayed, there’s not enough product” to satisfy demand in a timely manner, Camp said. “Rail space has been hard to come by, so there’s
been difficulty moving soy meal into export positions.” The price of soy meal subsequently shot up nearly $100 per ton at some locations. Export inspections of soybeans from the U.S. climbed for the eighth straight week last week. Crop prices also gained support in recent weeks from out-
side investors who moved money into commodities due in part to concerns about the European and international economies. Previous concerns about dryness in Brazil were alleviated by rains in many areas there during the last two weeks, Camp noted. Farmers in Illinois made considerable harvest progress as they cut 26 percent of the soybean crop and 16 percent of corn the last full week of October. “The weather has been fantastic the past week and a half with good drying days,” said Larry Hummel, a FarmWeek CropWatcher from Dixon (Lee County). “We were picking a lot of corn with moisture around 25 to 27 percent, which doesn’t go through the dryer very fast,” he continued. “Now, some of the same varieties are down to 21 percent. It’s really helping speed things up around here.” Harvest in Illinois the first of last week was 59 percent complete for corn (13 percent behind average) and 63 percent complete for beans (14 percent behind average). “A lot of the regular beans are done, but most of the (double-crop) beans are still
Export outlook: China will still drive ag market BY DANIEL GRANT FarmWeek
A slower rate of economic growth in China could impact demand for ag commodities and prices at a time when crop supplies are ample. But the long-term outlook for protein demand in China, and exports in general, remains bullish. Gaogao Yu, an oilseed economist at Doane Advisory Services, believes the rate of gross domestic product (GDP) growth in China this year may not reach 7.5 percent as previously predicted. GDP growth in China the past decade averaged close to 10 percent. “The economy (in China) has slowed down the last couple years,” Yu said during Doane’s 31st annual outlook conference. “The drop in the rate of growth in the short run
See Harvest, page 3
could leave the world with extra supply (of feed grains). “But I still expect (the Chinese economy) will maintain a high growth pattern for coming years,” she continued. “And, long run, I’m still optimistic China will act as an engine for global commodity demand.” Yu based the prediction on her expectation that China will continue to transition from a manufacturing and investment-dependent economy to a consumption-driven economy. Urbanization in China could expand from 30 percent to 80 percent by 2030, Yu said. “This will generate huge consumption potential for household items,” she said. China, the world’s second-largest economy behind the See China, page 3 www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, November 3, 2014
U OF I FEED MILL FUNDED — The University of Illinois received $5 million last week to fund a new, state-of-the-art Feed Technology Complex. Announced by Gov. Pat Quinn, $3.5 million will come from the governor’s $31 billion Illinois Jobs Now! construction program. Archer Daniels Midland will provide $1.5 million to the project -- expected to cost $13.3 million. “The Feed Technology Complex will help the University of Illinois maintain its reputation for excellence in animal science research and education,” Quinn said at a press conference. Illinois Farm Bureau’s Livestock Program Director Jim Fraley wrote a letter of support for the state funding along with the Illinois Beef Association, Illinois Milk Producers’ Association and Illinois Pork Producers Association. The new feed complex will replace a century-old feed mill.
AMERICANS SHARE FINANCIAL FEARS — When asked about their biggest financial fear, 28 percent of Americans said being able to retire comfortably caused them to lose sleep. That’s the latest findings of the COUNTRY Financial Security Index survey. Fifty-one percent of those surveyed rate their financial security as just fair or poor. Health care expenses (18 percent) and being able to afford rent or mortgage payments (11 percent) also weigh on a number of Americans. The rapid growth of online banking creates a new concern for many Americans. Sixty-seven percent worry about their financial information ending up in the wrong hands. However, the survey found 70 percent of those surveyed who work with a financial planner are more confident about their finances and feel less stress from family and friends to be financially successful.
COLLEGE DUO WINS DISCUSSION MEET — University of Illinois’ Clayton Carley of Iroquois County and Southern Illinois University’s Michaela Smith of Wayne County placed first and second in the recent Illinois Farm Bureau Young Leader and Postsecondary Agricultural Student (PAS) Collegiate Discussion Meet. The duo will represent IFB at the National Young Farmers and Ranchers Collegiate discussion meet Feb. 14-16 in Nashville. Twelve college students competed in the IFB and PAS discussion meet. TUSCOLA LANDS FERTILIZER PLANT — Cronus Chemicals announced last week that the company will build a $1.4 billion fertilizer plant west of Tuscola. The plant will produce 800,000 tons of anhydrous ammonia per year, much of which would be converted into 1.4 million tons of granular urea fertilizer every year. About 2,000 people will be employed during construction — a process expected to take three years. Nearly 200 employees will work at the plant once it becomes operational. Cronus, incorporated in Delaware, represents Swiss, Turkish and American investors with backgrounds in the fertilizer industry.
Farm bill: Your questions answered It’s decision time. The 2014 farm bill requires farmers to make important choices — choices that will have implications for years to come. In the coming weeks, Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, will answer questions about the farm bill and decisions Doug Yoder farmers face.
Q: What are my options in the 2014 farm bill? A: Landowners have a one-time option to update payment yield and/or reallocate base acres.
Producers (anyone with a share in the risk of producing a crop) will have a onetime option to choose between Price Loss Coverage (PLC) or Agricultural Risk Coverage (ARC) — either at the county or individual farm level.
Q: What are the deadlines to sign up for the var-
ious farm bill options? A: There are three basic steps that will need to be taken at your county Farm Service Agency (FSA) office: • The decision to update payment yields and/or reallocate base acres must be made by Feb. 27, 2015. • Election of ARC/PLC can be made from Nov. 17 through March 31, 2015. • Annual ARC/PLC enrollment for 2014 and 2015 will begin roughly mid-April 2015. Please note the enrollment is a separate step from the ARC/PLC election.
If you have a question, please email it to dstroisch@ilfb.org, or mail it to: Farm Bill Questions, Deana Stroisch, 1701 Towanda Ave., Bloomington, Ill. 61701.
Buy a tractor, drive out hunger When you’re attending the Illinois Farm Bureau Annual Meeting Dec. 6-9 in Chicago, consider buying a tractor to take home. Not a real one, of course! Illinois Farm Bureau Young Leaders will sell 1:32 scale, metal die-cast versions of the Steiger 450 RowTrac tractor for $60. All proceeds will go to the Harvest for All campaign. The campaign allows Young Leaders to team up with Feeding America, the nation’s largest food bank. Throughout the year, Young Leaders donate food, funds and peo-
ple power toward the effort. Nearly one in every 10 households in Illinois faces hunger, according to USDA. The model tractor features an opening cab door and hood, articulated body, detailed engine, movable three-point hitch with a draw bar, movable mirrors and GPS dome. It represents the first in the Harvest for All collectible series. The tractor can be purchased during the annual meeting at the IAA Foundation Country Store in the Upper Exhibit Hall.
CORRECTION — The 2014 Gulf of Mexico hypoxia zone measures about 5,000 square miles. The zone’s size was incorrectly listed in the Oct. 27 FarmWeek edition.
(ISSN0197-6680) Vol. 42 No. 44 November 3, 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 (morso@ilfb.org) 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
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Wheat planting window opens as season winds down Page 3 • Monday, November 3, 2014 • FarmWeek
BY DANIEL GRANT FarmWeek
A number of farmers took advantage of drier conditions the last weekend of October and much of last week to plant wheat around the state. Matt Niedbalski, a farmer from Nashville (Washington County) and Farm Bureau Young Leader, recently finished planting wheat on his farm and last week customplanted some additional fields. “It seems like the ground is still pretty warm and there’s decent moisture,” Niedbalski said before temperatures nosedived late last week. “There’s quite a variance in germination, so we’re planting thicker.” Wheat growers in Illinois planted just 41 percent of the wheat crop as of the first of last week, the National Agricultural Statistics Service Illinois field office reported. That’s well behind last year’s
Matt Niedbalksi, a farmer from Nashville (Washington County) and Farm Bureau Young Leader, custom-plants wheat on the Don Bolt farm in Washington County. The soil worked well last week in between rain showers as farmers hustled to plant their remaining wheat acres before the window closes this season. (Photo by Brad Niedbalski)
pace of 86 percent and the five-year average of 75 percent. Just 18 percent of the crop emerged as of last week com-
China
U.S., already accounts for about 30 percent of world soybean use, 27 percent of corn use, 32 percent of cotton use and more than half of the world’s pork consumption, according to Rich Pottorff, Doane chief economist. “Whatever happens in China has global implications,” Pottorff said. “It’s by far the world’s largest market for soybeans and cotton, and USDA expects it will be our biggest market for corn by 2020.” More than 70 percent of the population in China ranges between 15 and 64 years of age, according to Yu. Disposable income there also continues to rise. “This group of people is willing and ready to change to a better, higher quality lifestyle,” Yu said. Curtis Jones, global director of economic analysis for Bunge Global Agribusiness, believes a rising population and growing incomes in emerging economies will continue to support robust demand for ag commodities as well. Jones, who was the keynote speaker recently at the Export Exchange in Seattle hosted by the U.S. Grains Council (USGC), believes ag sales will continue to grow in Asia, the Continued from page 1
‘Whatever happens in China has global implications.’ — Rich Pottorff Doane chief economist
Middle East and North Africa. “Growth in U.S. agriculture depends on exports. The world’s fastest growing economies are abroad, and 95 percent of the world’s population lives outside our borders,” said Ron Gray, USGC chairman and a farmer from Richland County. “U.S. agricultural exports are supporting economic progress and a better life for people around the world.” U.S. soybean exports continue to grow and the U.S. last year exported a record 9.7 million metric tons of distiller’s dried grains to nearly 50 countries. Pottorff expects more than half the world’s population growth by 2050 will occur in sub-Saharan Africa, a graindeficit area. “It suggests further gains in world trade should help facilitate more U.S. grain exports,” he added.
Harvest
standing,” said Scott Gronnert, a farmer from Nashville (Washington County). “A lot of the corn is off, although there’s a fair amount left.” A hard freeze over the weekend was expected to end the growing season across much of the state. “(The freeze) will keep our corn from drying any further, but it shouldn’t affect (harvest) otherwise,” Hummel added. Continued from page 1
pared to the average of 42 percent. Showers slowed some planters again early last week, but Scott Gronnert, a Nash-
HARVEST SAFETY
ville farmer, believes farmers planted much of their crop the last two weeks. Washington County consistently registers as one of the top wheat-producing counties in the state. “A lot of wheat was sowed Saturday (Oct.25) through Monday (Oct. 27),” said Gronnert, who was slowed by .4 of an inch of rain Tuesday morning. “I’d say most of the wheat is in,” he continued. “(The soil) was in good shape until we got the rain (last week). “If conditions are alright (through the weekend), we might plant more wheat.” Wheat planting delays were common last month due to wet soil conditions, and subsequent delays with corn and soybean harvest. “In our area, the soybeans are later than the corn. We’ve had substantial rainfall,” Mark Miller, general manager of
Mennel Milling in Mount Olive (Macoupin County), said last week. “I’m hopeful the wheat’s getting sown.”
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Listen to the latest AgFanatics podcast about the market outlook at FarmWeekNow.com.
Wheat acres could be down this year, though, due to planting delays. Some farmers opted not to plant as much wheat due to quality issues last harvest and lower prices, Niedbalksi noted. “I don’t think guys will put out much more wheat (after Nov. 1),” he said. Illinois farmers last fall seeded 740,000 acres of wheat. Acreage could be down this fall, although likely nothing compared to the difficult fall of 2009 when farmers in the state planted a record low 330,000 acres of wheat.
Be aware of vehicle weight limits BY KAY SHIPMAN FarmWeek
Bumper crops mean lots of vehicles moving grain this fall. Even though farmers may be tempted to load as much as possible into trucks and wagons, they need to remember road weight limits, said Kevin Rund, Illinois Farm Bureau senior director of local government. Bridges and pavements can withstand only so much weight. Wet conditions soften shoulders and can destabilize the base under pavements. Load responsibly to preserve your road system. State laws set maximum weight limits on both axle and gross weights for trucks and trailers. Axle spacing is key. Check the Federal Bridge Formula to compute your equipment’s allowable weight. The law limits each wagon on a public road to 36,000 pounds gross weight. They are not limited by axle weight. It doesn’t matter how many axles are on the wagon — the gross weight remains the same. To determine the gross weight, the wagon and its load should be decoupled from the towing unit and weighed on its own. The American Society of Agricultural and Biological Engineers (ASABE) recommends a wagon’s weight not be more than two times the weight of the towing vehicle, Rund noted. Farmers are limited to towing no more than two wagons at a time, but “often two is one too many for safety,” Rund said. In addition, farmers face fines for weight violations. Generally, overweight fines cost
$150 for each 500 pounds over the weight limit, according to Rund. Some farmers obtain harvest season overweight permits; however, those apply only to axle weight — not gross weight — making them virtually useless for four- and five-axle trucks, Rund said. Other transportation related issues to keep in mind include: • The state bans use of hand-held phones and texting while driving trucks or implements, including combines and tractors, on a public road. Use voice-activated devices or earpieces. • Wet weather creates other challenges. Law prohibits parking trucks and wagons on the road or shoulder for loading. The person who put mud on a road generally is responsible for clearing it from the road, he added. • Keep slow moving vehicle emblems, amber lights, taillights and required reflectors in the proper places, clean and functioning. • Truck drivers, especially those who only occasionally drive big rigs, should remember a heavy truck takes a long distance to stop and a long distance to accelerate. Allow ample leeway for stopping and accelerating with flowing traffic. • Practice courtesy. Farm equipment and trucks move slowly, so be courteous to other drivers. Don’t forget to share the road with other vehicles when moving farm machinery, and be sure to cart combine headers between fields, Rund said. For more information on weight limits, visit {www.ilfb.org} and search for “transportation and infrastructure.”
Dairy industry could face tighter margins next year
FarmWeek • Page 4 • Monday, November 3, 2014
BY DANIEL GRANT FarmWeek
Dairy farmers in recent months enjoyed some of the highest milk prices of their careers. The Class III price for milk adjusted to 3.5 percent butterfat in August soared to a record $24.60 per hundredweight. But “what goes up must come down,” and dairy farmers now prepare for what appears to be lower prices and tighter margins ahead. “We’ve had a good run at it (but record prices) probably will come to an end (by next year),” said Doug Scheider, a dairy farmer from Freeport (Stephenson County) and president of the Illinois Milk Producers Association. “There’s a lot of fundamental red flags popping up,” he continued. “Futures (prices) indicate the coming year won’t be nearly as profitable.” CME futures suggest milk prices could slip to $20 per hundredweight, or below, by the end of this year and down to $17 or $18 by 2015. Lower prices in the future are based in part on USDA’s expectation that dairy herds and milk production will grow heading
into next year, according to Dan Vaught, Doane senior economist. “The long-term trend suggests a somewhat larger herd,” Vaught said during Doane’s annual outlook conference. Vaught believes dairy production per cow will continue to increase due to industry efficiencies and a shift to milking three times per day, among other factors. But he does not foresee major herd growth in the near term, which could impact prices down the road. He predicts U.S. dairy farms next year could produce about 212 billion pounds of milk compared to USDA’s estimate of about 213 billion pounds. “USDA analysts surely are looking at the dairy industry earning some of its strongest returns this year and thinking A cow produces milk on an Illinois farm. Some analysts believe U.S. dairy producers will continue to increase that will cause producers to dis- milk production via efficiencies and greater use of three times per day milking. Milk prices as a result could pense with culling this fall and decline next year, although underlying dairy demand remains strong. (File photo by Ken Kashian) boost production dramatically next year,” Vaught said. “But I butter prices, which currently (milk) prices could hold up any time in the near future. I think we’ll see moderate culling better,” Vaught said. are in seasonal decline, earlier think butter prices will remain during the winter months.” this year more than doubled to elevated over time as well.” Dairy prices also should Record beef prices and low- maintain support from strong $3-plus per pound. Part of the boost in butter er milk futures could encourage product demand both domes“Underlying dairy demand demand results from an ongoing some dairy farmers to cull cows tically and around the world. remains strong,” Vaught said. consumer shift away from vegrather than grow their herds. Block cheese prices this fall “I don’t see the upward trend etable spreads and other mar“If producers don’t expand reached record levels of more in cheese demand reversing garines back to butter, he added. herds as much as expected, than $2.40 per pound, while
USDA extends dairy program deadlines BY DEANA STROISCH FarmWeek
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USDA last week extended the deadlines for signup and the comment period for the dairy Margin Protection Program. Farmers now have until Dec. 5 to enroll in the voluntary program, established in the 2014 farm bill. “Dairy farmers need to look hard at this program as lower milk prices seem to be right around the corner,” said Jim Fraley, Illinois Farm Bureau’s livestock program director. The program provides financial assistance to participating dairy producers when the difference between the price of milk and feed costs falls below the coverage level selected by each farmer. “We want dairy producers to have enough time to make thoughtful and well-studied choices,” said Ag Secretary Tom Vilsack. “Markets change and the Margin Protection Program can help protect dairy producers from those changes.” Producers can visit {fsa.usda.gov/mpptool} to calculate the best levels of coverage for their dairy operations. The basic program at $4 of margin coverage is free. Additional insurance can be purchased — for a maximum of $8 total — at 25 percent to 90 percent of the previous year’s milk production. During the first two years of the program, premiums will be reduced by 25 percent for all coverage levels except the maximum level of $8, and only for dairymen who produce fewer than 4 million pounds per year. “The best bang for your buck appears to be in that $6 to $6.50 range,” Fraley said. “Anything purchased beyond that level may get pretty pricey. Be sure to know how much risk you are willing to take with your operation.” USDA last week also extended the public comment period for the Margin Protection Program and the Dairy Product Donation Program until Dec. 15. Comments can be submitted to USDA at {go.usa.gov/GJSA}.
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Cover crops will comprise the focus of Thursday’s 8:30 a.m. field day at the University of Illinois Extension Ewing Demonstration Center on the north edge of Ewing. Topics will include cover crop establishment challenges and successes, drill
and planting calibration, and cover crop species selection. Participants will also tour a demonstration plot of cover crops established in late summer. Participants can attend at no charge. To register, call the Franklin County Extension Office at 618-439-3178.
AFBF: Oppose EPA’s proposed ‘Clean Power Plan’
Page 5 • Monday, November 3, 2014 • FarmWeek
BY DEANA STROISCH FarmWeek
Ratepayers in more than 40 states -– including Illinois — will see double-digit electricity price increases as a result of the Environmental Protection Agency’s (EPA) proposed “Clean Power Plan,� according to an analysis by Boston-based NERA Economic Consulting. The study, commissioned by several groups including the American Farm Bureau Federation, also estimated the cost to comply with the proposed plan could total at least $366 billion between 2017 and 2031. EPA’s proposed regulations will require existing power plants to cut car-
bon dioxide emissions by 30 percent during the next 15 years, among other things. Saying that farmers will be “especially hard hit,� AFBF recently issued an action alert, urging farmers nationwide to submit comments FarmWeekNow.com against the Go to FarmWeekNow.com proposed to submit Clean Power Plan plan by comments. Dec. 1. “Farmers and ranchers depend on reliable and affordable sources of energy to run their tractors and combines, keep their animals comfortable and healthy, and water their
crops,� according to the action alert. Among the report’s findings: • EPA’s plan could cost consumers and businesses $41 billion or more per year. • Additional coal retirements would total 45,000 megawatts or more of coalbased electricity. •Forty-three states would see doubledigit electricity price increases. Illinois electric price hikes could range from 15 percent to 27 percent, depending on the scenario. EPA noted that power plants account for about one-third of all U.S. greenhouse gas emissions, and that there aren’t limits on carbon pollution from power
plants. EPA last week released additional data on its proposed rule. Officials urged people to submit comments. “We believe public input is one of the most important parts of the rule-making process,� said Janet McCabe, an EPA acting assistant administrator. “And the more we listen and gauge, the more perspectives we hear, the more ideas we hear, the better the Clean Power Plan and all of our work will be.� EPA could finalize the proposed rule by June 2015. To submit comments to EPA, go online to {fbactinsider.org/action-cen ter/legislative-action-center}.
Study finds seed treatments have few benefits on soybeans
BY DEANA STROISCH FarmWeek
Using neonicotinoid seed treatments to control insects provides little or no overall benefit to soybean production, according to a study released recently by the Environmental Protection Agency (EPA). The Biological and Economic Analysis Division analyzed the use of seed treatments for insect control in soybean production. The analysis concluded the treatments “provide negligible overall benefits to soybean production in most situations.� “Published data indicate that
in most cases there is no difference in soybean yield when soybean seed was treated with neonicotinoids versus not receiving any insect control treatment,� according to the analysis. “Furthermore, neonicotinoid seed treatments as currently applied are only bioactive in soybean foliage for a period within the first three to four weeks of planting, which does not overlap with typical periods of activity for some target pests of concern. This information, along with current usage data, suggests that much of the existing usage on soybeans is
‘Published data indicate that in most cases there is no difference in soybean yields ...’ prophylactic in nature.� Some questioned the findings and scope of the analysis. Neonicotinoid insecticidal seed treatments include imidacloprid, thiamethoxam and clothianidin. University of Illinois crop sciences professor Mike Gray noted the analysis concentrated only on the
— EPA findings
potential benefits of imidacloprid and thiamethoxam used as seed treatments. “Although clothianidin is registered for use as a soybean seed treatment, the authors of the report considered its use ‘minor’ as compared with the other two neonicotinoids,� Gray said. American Farm Bureau Fed-
eration’s Paul Schlegel noted the analysis was limited to soybean production and should be looked at in a broader context. Schlegel, director of AFBF’s energy and environment team, said this report probably won’t have much effect on farmers. But he noted it’s part of EPA’s assessment of the entire class of pesticides, which is being done at the request of President Obama. “If there are going to be restrictions on farmers’ use of crop protection tools, that could be of concern to us,� he said.
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FarmWeek • Page 6 • Monday, November 3, 2014 Bernie Walsh, Durand, Winnebago County: We made very good harvest progress last week. Most of the soybeans were harvested except for a few scattered fields. Corn harvest is finally in full steam ahead mode. Moisture on almost all fields is finally in the low 20s, and yields are 200+ in most fields. We had some spots that had way too much water in June, so the yields are much lower there. There are also spots on the lighter soils that suffered from not enough rain in late July and early August. The corn crop in Winnebago County is probably about 30 to 40 percent harvested. Pete Tekampe, Grayslake, Lake County: We had a great week to harvest crops. Beans are about 70 percent harvested with yields a little better than average, even with the low spots not producing any yields because of too much moisture. I finished Wednesday. Not much corn harvested yet. The early-planted wheat looks good, and I think most of it is planted now. Remember to be safe. Leroy Getz, Savanna, Carroll County: Harvest continued with no interruption from the weather. We baled more cornstalks for livestock bedding. As our storage became full, we hauled the last of our corn to the elevator and finished harvest Wednesday. We were pleased with the 58-pound test weights. There was a lot of tillage done and fertilizer being applied. Ryan Frieders, Waterman, DeKalb County: A lot of crops were harvested last week. Soybean harvest is complete and yields were good to average. Soybean seeds are very small and the test weights are low. Corn harvest is more than 50 percent complete. Corn yields are also trending average at this time with moistures finally at or below 20 percent. Fieldwork is being completed and fall fertilizers are being applied. Larry Hummel, Dixon, Lee County: What a beautiful fall this has been so far. The colors of the trees have been nothing short of spectacular. Bright oranges, vibrant reds and dark greens make this year one to remember. Soybean harvest has wrapped up around here, but there is a ton of corn yet to be hauled out of the fields. Last week’s winds and warm weather really helped to dry the corn down. Moisture levels are down in the low 20s and a few fields are into the teens. Ken Reinhardt, Seaton, Mercer County: It was another good harvest week. The first hard freeze was predicted for Friday night. It should help a few that are fighting green stemmed soybeans yet. It was a good year for fungicide on corn. There are numerous reports of 30 bushels per acre or more yield increases at a cost of higher harvest moisture even this late in harvest. In many cases, northern leaf blight came in after decisions were made for fungicide applications. Ron Moore, Roseville, Warren County: It was a dry week with no rain and no fog. We finished our soybean harvest and went back to corn. Yields are in the mid-40s where sudden death was present, and in the mid-60s in other parts of the field. Moisture is between 11 and 13 percent. Some local elevators are full and have stopped taking beans. Corn is being piled on the ground, but they are still taking corn. It should be another good week for harvest.
Doug Uphoff, Shelbyville, Shelby County: Finished beans Monday (Oct. 27). We actually started chiseling, and then it rained again. We picked corn, but it was slow going and a muddy mess. Reminds me of 2009 all over again. In 2013, we finished corn a week ago last Tuesday. I have not heard about or seen any wheat being planted. Ron Haase, Gilman, Iroquois County: As October ends, we have 15 percent of our corn and more than 50 percent of our soybeans harvested. After a shower of .4 of an inch Monday, (Oct. 27), we switched to corn for one day on Wednesday. We returned to soybeans Thursday only to have the day cut short by a light rain in the afternoon. It was eight days since we last harvested corn, and the moisture was about 3 percent drier. It had fallen from 21 to 22 percent down to 18 to 19 percent. Before the rain, soybeans had dried down to 11 percent, but were back at 13 percent moisture Thursday. Our corn is standing well, so our priority is to get the soybean crop harvested. Local prices for Oct. 30 closed at nearby corn, $3.34, and nearby soybeans, $10.03. Brian Schaumburg, Chenoa, McLean County: Harvest wrapped up the day before Halloween on our farm when we took the Heartland Bank soybean plot out just before showers put a halt to combining. Corn is 85 percent complete, and soybeans should be close to that mark. Farm and field records were set despite white mold and sudden death syndrome that took a toll on bean yields. The first NH3 tanks were heading to the driest fields. Some tillage was being done, but there are plenty of rutted fields. Vote! Your local elections are more important to the ag community than ever! Corn, $3.37, Jan., $3.53, fall ’15, $3.81; soybeans, $10, Jan., $10.08, fall ’15, $9.72; wheat, $4.92. Steve Ayers, Champaign, Champaign County: Plugging away on harvest between showers with 45 acres of beans and 150 acres of corn left to harvest. Showers started about 3 p.m. Thursday and continued all evening to total .15 of an inch. Frost on the pumpkin over the weekend along with 40 mph winds. Elevators are filling up as the usual trains are not available. Looks like rain Monday to Tuesday, but then clearing and warming up later in the week. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: For starters this week, I totaled up the rainfall here since April 1. It totaled 35.4 inches, so I guess that is good enough reason many fields are still soft resulting in them not being harvested yet. I would estimate corn harvest at perhaps 75 percent done and beans maybe slightly more. Seems like more worked in beans to our north and in corn to the south. I have not seen any wheat seeded yet. Have a good and safe week as the harvest winds down.
Jacob Streitmatter, Princeville, Peoria County: Harvest is rapidly moving forward. Soybeans are finally completed for me and most in my area. Yields on soybeans were a few bushels above average, and corn looks to be on track for just average yields.
Tom Ritter, Blue Mound, Macon County: Showers earlier in the week totaled about .5 of an inch. We had light rain Thursday, but no major accumulation. It was a week mostly for picking corn. Conditions have just not been right for soybeans with some of the cooler temperatures and extra moisture. The biggest problem farmers have been facing is still a lot of soft spots in the field and trying to work around those. Corn harvest is probably 70 percent complete in this area. Soybeans are probably in the same range. A lot of farmers need a few more days of good weather to wrap things up. Not a lot of tillage going on. Two weeks ago, I saw some anhydrous being applied. Most farmers are concentrating totally on harvest at this point, especially with the wet field conditions.
Mark Kerber, Chatsworth, Livingston County: It was another good week of harvesting except for .5 of an inch of rain that slowed us up for a couple of days. Ninetyfive percent of the soybeans are harvested and 65 percent of the corn is done. Fields are soft again after the last rain. Fall tillage was going OK, but too muddy now, at least in this corner of the county. Corn and soybean yields are the best we have ever seen. Markets have risen some with good demand.
Jimmy Ayers, New City, Sangamon County: There was quite a bit of activity last week. Farmers were going in as far as they could, and they made a lot of mud tracks. Quite a few beans were cut. Corn is 60 to 70 percent done, and 50 percent of beans are harvested. Some farmers were getting done. We are hoping for more of a dry streak. It appears that tile and strip-till and notill are helping farmers get the crops out a lot better. Conventially tilled fields are giving farmers a lot more trouble with mud and soft spots.
David Schaal, St. Peter, Fayette County: A lot of harvest took place last week. Many producers have finished soybeans in the area except for some double-crop beans. Corn shelling continued and corn piles at the elevators continue to get bigger. For the most part, weather has cooperated. A lot of equipment on the roads. Be alert and stay safe. Dan Meinhart, Montrose, Jasper County: Harvest was in full swing until Monday evening (Oct. 27) when rain set in, leaving on the average .5 of an inch. As the soil was already saturated, the ground became soft very quickly, bringing harvest to a halt. Harvesting resumed Wednesday. Bean harvest is virtually complete except for the double crops. Corn harvest is moving right along, even though the corn is still carrying quite a bit of moisture. Some wheat is going into the ground. Light showers were in the area Thursday evening. Hopefully, they won’t amount to much. Dave Hankammer, Millstadt, St. Clair County: With favorable weather and field conditions, soybean harvest was top priority. Many of the first-crop beans have been gathered from the field with a few fields still waiting at this time. Yields have been good, but some yield reduction has been obvious due to sudden death syndrome and other late summer issues. A few doublecropped soybeans have been cut as this crop is drying down. Wheat plantings increased as the previous crops were harvested. A small rain of .3 of an inch fell early in the week, delaying planting for a day. Corn and milo harvest continues as farmers wrap up other field activities and should pick up the pace going into the first week of November. Local grain bids are corn, $3.39; soybeans, $10.34; wheat, $4.33. Have a safe week. Rick Corners, Centralia, Jefferson County: Time marches on and so does harvest. I really think this mess could still be going on at Christmas. Lots of corn to go, still lots of single-crop beans and double-crop bean harvest hasn’t even started. In fact, some of those aren’t ripe yet. Although, I think old Jackie Frost will take care of that this weekend. We had .7 of an inch of rain Tuesday, which wasn’t good on all of the wheat that was sown last week. Kevin Raber, Browns, Wabash County: Harvest was interrupted a couple of times last week. We had .8 of an inch of rain Tuesday. It rained Friday (Oct. 31), but I didn’t look at the gauge. Corn harvest is almost done in my area. Most first-crop beans are cut, but I have a couple of days of harvest left. Most double-crop beans are still in the field, but most are ready or very close to ready. Randy Anderson, Galatia, Saline: County harvest was still moving along despite a couple light showers last week. I would say that we are around 60 percent complete in my area. But the next 40 percent will be harder to get as the days get much shorter, and weather is usually not the best from here on out. Ken Taake, Ullin, Pulaski County: It rained Thursday evening, and we also had .25 of an inch Tuesday. With the cooler temperatures last week, soil conditions were pretty slow to dry. A hard freeze was forecast for the weekend, so that will pretty much end the growing season and finish off any crops that weren’t quite ready yet. There was a lot of harvest activity last week. We are almost finished with corn, and the last of our corn is finally coming out of the field dry. There has been a lot of concern with corn not drying down in the field this year. We are about half finished with our soybean harvest.
NACD officials express concern for EPA proposal
Page 7 • Monday, November 3, 2014 • FarmWeek
The National Association of Conser vation Districts (NACD) joined the ranks of s e ve r a l g r o u p s c o n c e r n e d about a “waters of the U.S.� proposal. NACD officials asked the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers to withdraw the current version of a proposed rule defining “waters of the U.S.� under the Clean Water Act (CWA). NACD expressed concerns and requested additional clarification on the following definitions: tributaries, adjacency, other waters and significant nexus. NACD policy opposes any measure that expands jurisdiction of the CWA. After completing an economic analysis, EPA and the Corps e s t i m a t e d t h e r u l e wo u l d result in a 3 percent increase
in CWA jurisdiction. The amount of expansion is difficult to predict with any meaningful precision; however, if the rule were to encompass all adjacent waters and most isolated wetlands and ditches, NACD estimates it would be significantly greater than 3 per-
cent. Regardless, even a 3 percent increase in jurisdictional areas would be significant, considering the total number of acres affected and the associated potential economic impacts. NACD supports the decisions of the Supreme Court to
leave the management of nonnavigable waters in the hands of landowners and local governments. For more than 75 years, conservation districts have been leaders in locally led efforts to ensure a clean and sustainable water supply for the nation.
“It is our philosophy that an ounce of prevention is worth a pound of cure,� said NACD President Earl Garber. “Less costly preventative measures are being implemented on the ground every day due to voluntary and incentivebased conservation practices.�
A rule intended to clarify which agriculture activities aren’t subject to regulation under the Clean Water Act has created “great confusion� and should be immediately withdrawn, according to a group of Republican senators. Sen. Thad Cochran, RMiss., and other Republican members of the Senate Agriculture Committee wrote to the heads of the Environmental Protection Ag ency
(EPA), Army Corps of Engin e e r s a n d U S DA r e c e n t l y requesting an update on the implementation of the interpretive rule, which was filed at the same time as the proposed change to the definition of “waters of the U.S.� The interpretive rule, which went into effect immediately, outlined 56 agricultural conser vation practices exempt from dredge and fill (Section 404) permits under the Clean Water Act.
“The interpretive rule has inserted substantial uncertainty into this process by outlining just 56 activities out of more than 160 conservation practices that previously qualified for the normal farming and ranching exemption under Section 404 of the Clean Wa t e r A c t ,� t h e s e n a t o r s wrote. “Further, it calls into question whether any other normal farming or ranching a c t iv i t y n o t c o n d u c t e d i n a c c o r d a n c e w i t h a U S DA
technical standard can qualify for the exemption. “By now requiring, for the first time, that a producer meet this higher standard, the interpretive rule has narrowed the normal farming exemption and created a threshold many producers will have difficulty meeting. The change also dramatically increases the risk of litigation as the standards will be impossible to consistently apply and enforce at the farm level.�
far mers the challenges and opportunities facing us and talking specifically about their role,� Willhite said during a
University of Illinois biogeochemistry researcher, will discuss scientific data and studies that served as a basis for
“There is something within the range of (management) practices everyone could do — in the field or the edg e of field,� David said. Other sessions related to the nutrient strategy include cover crop work in Illinois, and nitrog en and phosphorous management within fields and within seasons. Along with the nutrient s t r a t e g y, g e n e r a l s e s s i o n speakers will cover the implications of far m bill programs, education initiatives within the agrichemical and a g r i b u s i n e s s s e c t o r s, a n d e vo l u t i o n i m p l i c a t i o n s o f resistance development by insects, plant pathogens and weeds. Additional breakout sessions include: uses of
unmanned drones for crop scouting, managing big data, Palmer amaranth biolog y/ecolog y, refining herbicide application, western cor n rootwor m resistance to Bt, corn genetic advancement and considering pollinators in managing soybeans. Pa r t i c i p a n t s m ay s e l e c t eight of 16 breakout sessions. Due to limited space, registrants are encouraged to enroll early to ensure their selections. Through Dec. 5, the registration fee is $250. To register online, visit {cropsciconferences.com/AG Masters/}. For more information about registration, contact Sandy Osterbur at saosterb@illinois.edu.
Senators: Rule creates ‘great confusion,’ should be withdrawn
U of I conference offers farmers wish list of topics BY KAY SHIPMAN FarmWeek
Challenging, infor mative and fascinating describe subjects on tap for the University of Illinois Extension AGMasters Conference Dec. 15 and 16 at the iHotel and Conference Center, Champaign. The university is accepting online registrations. A subject that will impact e ve r y f a r m e r, t h e I l l i n o i s Nutrient Loss Reduction Strategy, will be released for public comment in mid-November. Marcia Willhite, chief of the Illinois Environmental Protection Agency water bureau, starts the conference with an over view of the statewide strategy. “I look forward to the oppor tunity to share with
‘I look forward to the oppor tunity to share with farmers the challenges and o p p o r tu n i ti e s fa c i n g u s a n d ta l k i n g specifically about their role.’ — Marcia Willhite Illinois EPA water bureau chief
recent national hypoxia task force meeting. “Our success depends on their choices.� Three of 16 in-depth specialized sessions focus on components related to the nutrient strategy. Mark David,
Listen.
the nutrient strategy. David, who reported on the strategy science at the hypoxia meeting, encouraged far mers to delve into the strategy’s best management practice components.
Click.
Read.
The most people, on the ground, in Illinois, covering Illinois agriculture for you. Get to know Kay Shipman Legislative Affairs Editor
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TTIP: a gold standard for future trade negotiations
Page 9 • Monday, November 3, 2014 • FarmWeek
BY MARK ALBERTSON AND TAMARA NELSEN
Experts in agriculture, manufacturing, services and trade recently gathered in Chicago to share their views on challenges and opportunities for the Transatlantic Trade and Investment Partnership (TTIP). According to leaders at the American and Chicago Chamber of Commerce and the European Union (EU) Commission, TTIP will set the bar for future trade agreements. Organized by the Chamber of Commerce and the British and German Consulates in Chicago, the event was part of EU consulate efforts to encourage transparency and dialogue about this important agreement. Without a doubt, TTIP is a huge undertaking with potentially enormous benefits. Together, the U.S. and EU economies represent 50 percent of the world’s gross domestic product (GDP). Economists project the agreement will mean an additional $125 billion a year to U.S. GDP and $900 dollars a year to American and EU citizens’ income. The U.S. invests more in the EU than with any other nation. In fact, total U.S. investment in the EU amounts to 40 times more than U.S. investment in China. The EU already represents Illinois’ second largest trading partner after Canada. Illinois primarily trades machinery, auto parts and other mechanical
parts with the EU. Once a top three market for Illinois agricultural products, the EU doesn’t even rank among the top 10 agricultural export markets today. According to ag industry panelists, Illinois agricultural exports to the EU declined substantially over the last decade due to trade restrictions not based on science. These include bans on U.S. meat treated with hormones, crops produced via biotechnology, and feed, seed, Mark Albertson or byproducts from biotech crops. U.S. soy exports alone declined 81 percent since 1998. Farm group participants expressed keen interest in and support for a TTIP that would help farmers regain lost markets in the EU and gain access to new ones. They agreed that in order for farmers to support the TTIP, it would need to offer regulatory cooperation based on science Tamara Nelsen and increased market access for U.S. agricultural products. Some examples of needed regulatory cooperation or improvements include: • The EU’s Renewable Energy Directive does not recognize U.S. conservation laws and needs to update its green-
house gas emissions formula to take into account U.S. feed stocks for biodiesel. • EU labeling requirements for genetically modified crops discriminate against biotech ingredients and do not allow for even minor presence. In addition, the EU’s regulatory system is politicized and unpredictable, resulting in lengthy delays and inconsistent rules. • Sanitary and phytosanitary barriers to exports of U.S. meat and poultry products (for example, the EU’s lack of acceptance of any poultry or egg products cleaned with chlorinated water or beef produced using hormones) also need to be harmonized. • Pesticide policies in the EU need revision as current plans to delist certain pesticides would effectively ban all U.S. crops treated with pesticides in 2016. With seven rounds of negotiations on this agreement behind them, negotiators start the next round in December in Brussels. Right now, trade experts on both sides are actively informing industry, legislators and others about the enormous benefits of a successful agreement.
Mark Albertson serves as Illinois Soybean Association director of strategic market development and Tamara Nelsen serves as Illinois Farm Bureau senior director of commodities.
Field meals Long-standing tradition or thing of the past?
FarmWeek • Page 10 • Monday, November 3, 2014
Most of us are familiar with the expression “from the farm to the fork.” And we know the food we place on our dinner table comes from our hardworking farmers as they plant, grow and harvest the crops that feed and clothe us. But how many of us are familiar with the expression “meals to the fields?” While farmers are feeding us, who’s feeding them? During planting and harvesting, farmers spend long hours in the field without the comforts of a kitchen and no drivethru for miles. As a result, at least in my family, the long-standing tradition of “meals to the fields” was started and continues, although less frequently today. I suspect this was once a tradition for many farm spouses and family members, but like my family, it’s becoming a thing of the past as farm family dynamics change. For those families still embracing this “meals on wheels” tradition, this time of year is very busy. While the farmer works from sunup to sundown, the farmer’s family in many households is busy loading up the vehicle with meals destined for consumption amidst the rows of corn and soybeans. The combine waits in the background just long enough for the farmer to enjoy a quick meal and some family chit-chat.
BY BRENDA MATHERLY
Growing up on a farm, I remember the hours of meal preparation followed by carefully packing each entree into a heat-preserving container, or in the case of dessert — you can’t forget dessert — a cooler. After the meal was packed, the table service and beverages were placed alongside. If packed carefully, not a morsel spilled on the way to the field. After finishing a meal, there was still work to be done, but the dishes could wait long enough to ride a few rounds in the combine. Even today on the rare occasion I take food out to the field, I pack up what’s left of the meal and climb into the combine as a passenger. In my experience, these field meals can be as simple as luncheon meat sandwiches and chips, but rarely was that on the menu. While not the traditional dinner table fare, these meals often included the family gathered around the tailgate spooning in a plate full of everything from lasagna and garlic bread to fried chicken and all the fixin’s — and let’s not forget dessert. So, the next time you drive by a farm field and catch a whiff of homemade cooking, you’ll know farm and fork have Danny Wilson, left, enjoys a field meal in eastern McLean County with employee, united in the field. Brenda Matherly serves as Illinois Farm Bureau assistant director of local government.
Jerry Brent, and son, Brian. Brenda Matherly, Danny’s daughter, prepared fried chicken, cheesy potatoes, green bean casserole and cream pie for the hardworking harvest crew. (Photo by Brenda Matherly)
IALF names alumni director
Jill Biehl of Belleville has been named alumni and special events director for the Illinois Agricultural Leadership Foundation (IALF). Biehl earned a master’s degree in education from the University of Illinois. She’s taught in the Illinois public school system and worked on her family’s grain and livestock farm. Biehl’s husband, Bob, graduated from the Illinois Agricultural Leadership Program in 2008. IALF conducts the two-year program from which more than 450 participants have graduated. The Biehls raise corn, soybeans, wheat and hogs. Jill Biehl IALF is a nonprofit organization comprised of individuals, companies, organizations and institutional partners.
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Farm Bureau Action Team reaches consumers while they wait
Page 11 • Monday, November 3, 2014 • FarmWeek
BY KAY SHIPMAN FarmWeek
We’ve all done it — read all sorts of information while we’re waiting at restaurants and doctor offices and other waiting rooms. The Illinois Farm Bureau Education Action Team is banking on a new tabletop display to reach consumers with time on their hands. Entitled “Farmers grow safe and healthy food for their families and yours,” the display features two urban moms, who toured farms to learn about more about food production, and two farm moms, who answer consumers’ questions. “The goal is to educate consumers about farmers growing safe food,” said David Stille, IFB manager of training and development. “We know the Field Moms (affiliated with Illinois Farm Families) do good work. We wanted to spread the word.”
The display makes it easy for consumers waiting with their smartphones to find additional information by using the QR code or visiting the {watchusgrow.org} website. Action Team members envisioned the colorful 8.5inch tall displays gracing tables, counters, desks and public spaces where consumers congregate. “The sky’s the limit,” Stille said. The timeless information about farming and farmers may
‘The goal is to educate consumers about farmers growing safe food.’ — Dave Stille IFB manager of training and development
be used year-round, he noted. Each county Farm Bureau soon will receive or has already received a supply, and more can be ordered when the sup-
ply is depleted, according to Stille. He encouraged anyone interested in the display to contact their county Farm Bureau.
Illinois Central College hosts Nov. 11 cover crop field day
Illinois Central College (ICC) will host its annual Cover Crop Field Day from 3 to 5 p.m. Nov. 11 on the East Peoria campus. The event offers short presentations and plot tours for area farmers and agricultural businessmen. Central Illinois cover crop researchers Gordon Roskamp, Pete Fandel,
Dean Oswald and Mike Plumer will speak. Participants will hear about different cover crop species and may ask questions about managing cover crops related to their farms. To register, contact Fandel, ICC associate professor, at 309-694-5410 or email pete.fandel @icc.edu.
Ford County to host cover crop, soil health seminar Nov. 7 A cover crop and soil health seminar will be from 1 to 3 p.m. Friday on the Larry Thorndyke farm near Piper City in Ford County. Reservations are requested by Wednesday. Topics will include cover crop management, species options, available federal farm and state agriculture programs, and keys to soil health. Participants may view a cover crop plot and a soil pit. For information or to make reservations, contact the Ford County Soil and Water Conservation District at 217-379-2372, extension 3.
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Greene County hosts ‘adopted’ legislator for first visit
FarmWeek • Page 12 • Monday, November 3, 2014
Greene County Farm Bureau recently hosted its “adopted” legislator, her husband and legislative aide for a two-day farm tour. State Sen. Julie Morrison, D-Deerfield, her husband, Joe, and legislative aide, Daniel Fristrom, traveled to Greene County to learn more about Illinois agriculture. Morrison, a Beardstown native, hosted Greene County Farm Bureau leaders for a district visit in summer 2013. The activity began at the Green Gables Inn, White Hall, with evening discussions about numerous ag, education and local government topics among county Farm Bureau leaders and the senator. The next morning, the visitors joined a jam-packed ag tour. At Sloan Implements, the BY CHRISTINA NOURIE
senator climbed into tractor and combine cabs, and learned about the production role of each piece of equipment. From the dealership, the group visited the family farm of Illinois Farm Bureau Director Chad and Stacy Schutz. The visitors learned about livestock care and helped with morning chores, including feeding the cattle. The Schutzes explained how cattle Illinois Farm Bureau Director Chad Schutz, second from left, and his brother, Brock, chat with state Sen. Julie Morrison, D-Deerfield, when she toured their farm operations are run, how the animals are with her husband, Joe, far right, and legislative aide Daniel Fristrom, far left. The Greene County Farm Bureau provided its “adopted” senator with opportunities to fed and housed, and learn about livestock as well as grain farming. (Photo by Christina Nourie) the types of environNext, the group stopped at tour the facility and learn about mental practices they use to care Tri-County FS, Carrollton, to the services and products profor their farmland.
vided to local farmers. Over lunch at a restaurant, the group was joined by Dr. Michael McNear, a Greene County doctor and Greene County Board member. The doctor discussed the challenges facing rural health care and the local economy. Grain handling and feed production provided the next experience with a stop at Hog Inc., a grain handling facility that specializes in customized hog feed. Morrison enjoyed a hands-on tour, learning about the grain storage process, and making and marketing of hog feed. Education issues came next with a stop at Greenfield High School and a visit with Superintendent Kevin Bowman. The senator toured the school and learned how the district has dealt with school funding challenges and educational mandates. The day’s final stop involved a return visit to the Schutz farm. The senator drove a combine and toured the hog barns, donning coveralls and booties to learn about pork production. An evening bonfire and wiener roast at the Schutz home provided more time to chat with county Farm Bureau leaders. The senator, her husband and legislative aide appreciated the tour, and experiences to learn about farming and rural life issues. Morrison hopes to return next year with friends to tour more farms and enjoy the beautiful Greene County countryside. County Farm Bureau leaders and the senator look forward to continuing their educational relationship. Christina Nourie serves as IFB northeast legislative coordinator. Notice of Annual Meeting Illinois Agricultural Association Notice is hereby given that the annual meeting of the members of the Illinois Agricultural Association will be held in the Palmer House Hotel, 17 East Monroe Street, Chicago, Illinois, 60603, on Saturday, December 6, Sunday, December 7, Monday, December 8, and Tuesday, December 9, 2014 with the official meeting of voting delegates convening at 8:00 a.m. on Monday, December 8, for the following purposes: To receive, consider and, if approved, ratify and confirm the reports of the officers and the acts and proceedings of the Board of Directors and officers in furtherance of the matters therein set forth since the last the last annual meeting of the Association. To elect nine (9) members of the Board of Directors to serve for a term of two years. To consider and act upon such proposed amendments to the Articles of Incorporation or to the Bylaws of the Illinois Agricultural Association and upon such policy resolutions as may be properly submitted. For the transaction of such other business as may properly come before the meeting. James M. Jacobs Secretary
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Page 13 â&#x20AC;˘ Monday, November 3, 2014 â&#x20AC;˘ FarmWeek
OND â&#x20AC;&#x201D; Farm Bureau will co-host a farm bill informational dinner meeting at 6:30 p.m. Nov. 18 at Kaskaskia College Lifelong Learning Center. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, and Nick Paulson, University of Illinois, will speak. Call the Farm Bureau office at 664-3100 for reservations by Nov. 11. ROWN â&#x20AC;&#x201D; Farm Bureau will co-host a Dakota Pipeline meeting at 7 p.m. Nov. 12 at American Legion Post 374, Mount Sterling. Laura Harmon, IFB Office of the General Counsel, and Rae Payne, IFB senior director of business and regulatory affairs, will speak.
Call the Farm Bureau office at 773-2634 for more information. Reservations are not required but appreciated. â&#x20AC;˘ Farm Bureau is accepting fruit and nut orders. Call the Farm Bureau office at 773-2634 to place orders by Nov. 24. ASS-MORGAN â&#x20AC;&#x201D; Farm Bureau will cosponsor an informational pipeline meeting at 6 p.m. Monday at Praireland FS in Jacksonville. Laura Harmon, IFB Office of the General Counsel, and Rae Payne, IFB senior director of business and regulatory affairs, will speak. Call the Farm Bureau office at 245-6833 for reservations. OOK â&#x20AC;&#x201D; Tickets are available for members
Schuyler County farmers recently halted harvest temporarily in the name of safety, thanks to the annual â&#x20AC;&#x153;Take a Breakâ&#x20AC;? Harvest Safety promotion. Schuyler County Farm Bureau along with Schuyler County Soil and Water Conservation District (SWCD) and Prairieland FS conducts the program. Farm Bureau Manager Kelly Westlake, Prairieland FS employee Stacy Ward and SWCD employee Jami Kelly gave farmers and their employees a drink and snack, encour-
aging them to take a break during this harvest season. The trio also distributed slow moving vehicle (SMV) emblems, FS hats and rain gauges. A safety grant from COUNTRY Financial helped offset the cost of the SMV emblems. Farmers who took a break entered their name into a drawing for fire extinguishers donated by Farm Bureau and COUNTRY Financial Representative Jim Baack. Winners included Michael Murk, Gale Artis, George Sheets, Barry Settles, Jerry Curry and Neal Briney.Â
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C Farmers encouraged to take harvest breaks BY KELLY WESTLAKE
to Ringling Bros. and Barnum & Bailey Circus Nov. 19 to 30 at the United Center. Call the Farm Bureau office at 708354-3276 for details. ANCOCK â&#x20AC;&#x201D; Members are invited to a get out the vote/member appreciation event Tuesday at the Farm Bureau office. Hot apple cider, coffee and cookies will be served during office hours. â&#x20AC;˘ Farm Bureau will host a legislative breakfast for members with Sen. John Sullivan, D-Rushville, at 7:30 a.m. Friday at the Farm Bureau office. Sullivan will provide a legislative update and discuss current agriculture topics. Call the Farm Bureau office at 357-3141 for reservations by Wednesday. â&#x20AC;˘ Farm Bureau will host a pipeline meeting for landowners at 2 p.m. Nov. 12 at the Hancock County Extension Center. Laura Harmon, IFB Office of the General Counsel, and Rae Payne, IFB senior director of business and regulatory affairs, will speak. Call the Farm Bureau office at 3573141 for more information.
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ASALLE â&#x20AC;&#x201D; Farm Bureau is accepting orders for fruit and cheese. Fruit will be delivered the first week of December and cheese will be delivered the second week of December. Deadline to order is Nov. 21. Call the Farm Bureau office at 433-0371 for order forms or more information. IKE â&#x20AC;&#x201D; Farm Bureau will co-sponsor an informational pipeline meeting at 6 p.m. Monday at Praireland FS in Jacksonville. Laura Harmon, IFB Office of the General Counsel, and Rae Payne, IFB senior director of business and regulatory affairs, will speak. Call the Cass-Morgan Farm Bureau office at 217-245-6833 for reservations. CHUYLER â&#x20AC;&#x201D; Farm Bureau will co-host Dakota Pipeline meetings at 2 p.m. Nov. 12 at Hancock County Extension Center, Carthage; and 7 p.m. Nov. 12 at American Legion Post 374, Mount Sterling. Call the Farm Bureau office at 322-4353 for reservations by Nov. 11. COTT â&#x20AC;&#x201D; Farm Bureau will co-sponsor an informational pipeline meet-
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ing at 6 p.m. Monday at Praireland FS in Jacksonville. Laura Harmon, IFB Office of the General Counsel, and Rae Payne, IFB senior director of business and regulatory affairs, will speak. Call the Cass-Morgan Farm Bureau office at 217-245-6833 for reservations. INNEBAGOBOONE â&#x20AC;&#x201D; Young Leaders will cosponsor Far mers Feed the Hungry to raise money for the Belvidere-Boone County Food Pantry and the Rock River Valley Food Pantry. Far mers may donate corn and or soybeans at participating grain elevators. Donations of nonperishable goods or money may be dropped off at the Far m Bureau office. Deadline for all donations is Nov. 30. Call the Far m Bureau office at 962-0653 for more information.
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â&#x20AC;&#x153;From the countiesâ&#x20AC;? 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.
You have options.
And switc switching hing to to FS has never never been easier. easier. Schuyler County Soil and Water Conservation District (SWCD) employee Jami Kelly, second from left, offers snacks and drinks to farmers Marvin Phillips, Bill Trone and Bob Jett. Schuyler County Farm Bureau teamed with SWCD and Prairieland FS to conduct the annual â&#x20AC;&#x153;Take a Breakâ&#x20AC;? Harvest Safety promotion. (Photo by Kelly Westlake)
Tuesday: â&#x20AC;˘ FarmWeek: â&#x20AC;&#x153;The Early Wordâ&#x20AC;? â&#x20AC;˘ Freese-Notis Weather â&#x20AC;˘ Rachel Torbert, Illinois Farm Bureau media relations manager: 30-day blog challenge â&#x20AC;˘ Toni Dunker, Advanced Trading Wednesday: â&#x20AC;˘ Scott Schirmer, Illinois Department of Agriculture: proposed changes to emerald ash borer quarantine â&#x20AC;˘ Dan Hueber, Hueber Report: USDA crop report
â&#x20AC;˘ Greg Scott, McLean County Area EMS System: EMS Summit â&#x20AC;˘ Jody McClement, Syngenta: crop talk video Thursday: â&#x20AC;˘ John Caupert, National Corn to Ethanol Research Center: cellulosic ethanol research â&#x20AC;˘ Frank Butterfield, Landmarks Illinois: annual awards Friday: â&#x20AC;˘ Kevin Lockart, Ag-Land FS: tank maintenance â&#x20AC;˘ Mike Doherty, Illinois Farm Bureau senior economist and policy analyst: economic update â&#x20AC;˘ â&#x20AC;&#x153;Horse Talkâ&#x20AC;?
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FEELS LIKE HOME
Š2014 GROWMARK, Inc. A14243
FarmWeek • Page 14 • Monday, November 3, 2014
GROWMARK reports audited Evaluate input decisions to optimize investment year-end financial results BY JEFF BUNTING are measured at the end of the year.
GROWMARK’s 2014 fiscal year audited financial results rank among the top five income years in the company’s history. For the fiscal year that ended Aug. 31, sales totaled $10.4 billion with a pretax income of $194 million. A total patronage of $112 million will be returned to GROWMARK member-owners. Preliminary results reported in August totaled $10.2 billion for sales with a pretax income of $180 million and patronage totaling $90 million. Key highlights of FY2014 operational results include: • GROWMARK Energy reported record fuel volume with an increase in gasoline and distillate sales of 11 per-
cent and an increase of 29 percent in propane gallons. • GROWMARK Agronomy reported record plant food volume with an overall increase of 6 percent. The division also reported record seed corn unit sales, which increased 11 percent, along with a 15 percent increase in soybean units. • GROWMARK Grain reported a 32 percent increase in grain volume. “GROWMARK is in an extremely strong financial condition, and we are well positioned in the event the ag economy is more challenging in the next few years,” said Marshall Bohbrink, vice president and chief financial officer.
One-day workshop focuses on web-based farm bill tools
A one-day workshop from 9 a.m. to 4 p.m. Nov. 17 will include demonstrations and training on web-based decision tools for farm bill programs at the Crowne Plaza Indianapolis Airport Hotel. The free workshop hosted by the National Coalition for Production Education, which is led by the University of Illinois, requires online registration at {illinois.edu/fb/sec/ 4743782}. The 2014 farm bill provides producers with a choice among two versions of a revenue-based assistance program — Agriculture Risk Coverage — and a fixed-price program — Price Loss Coverage. The coalition’s web-based decision tool can be found at {fsa.usapas.com}. The USDA Farm Service Agency and National Association for Agriculture and Food Policy will also serve as workshop hosts.
M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$71.96 $48.43 40 lbs. (cash) $76.00-$87.00 $83.04 Receipts
This Week 67,717 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 82,638
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $84.89 $95.67 -$10.78 $62.82 $70.80 -$7.98
USDA five-state area slaughter cattle price (Thursday’s price)
Steers Heifers
This week $167.50 NA
Prev. week $169.95 $170.00
Change -$2.45 NA
It’s amazing to hear and see the yield reports resulting from all of the hard work and time committed to growing the 2014 crop. Unfortunately, high yields across this state and others have resulted in declining commodity prices and a lot of questions on what the impact will be going into next year. I get that question a lot, and I assume it’s a thought you have been thinking about as you sit atop your 2014 Jeff Bunting crop. It will be important to think about your crop protection inputs and make decisions that will make the most from your investment. It’s not a time to cut back, but take a look at what you’re spending and where. We are entering a growing season in which we need to evaluate input decisions and make the right investment to optimize yield potential. During the last couple of years, we were able to try a number of new practices with good commodity prices. However, as commodity prices decline, the tendency is to pull back on expenses when, in fact, it might cause us to look at the crop protection investment that will maintain yield potentials and profitable operations. A crop protection dollar goes across many different inputs and varies depending on operation, location, planted crop, etc. Seed selection continues to be the biggest investment and makes sense, since that is how all the efforts
However, that does not come without vigilant effort and commitment to protect the crop between planting and harvest. Yield reports indicate record levels. So, we will have to look at past success to provide the confidence in making seed selection decisions for 2015. The next decision will be your herbicide program. We continue to see more populations of resistant weeds showing up across Illinois. During the last three to four years, your local FS Crop Specialist has spent hours learning about effective weed management programs. Herbicide dollars spent to control weeds have increased because of the complexity and challenges we have faced to control glyphosate-resistant weeds. We currently have plenty of good options and more will be coming our way in the future. Your local FS Crop Specialist can help make sure your input dollars are maximized. Regardless of what you plant next year, it will be imperative to keep agronomic pressure on weed- and insect-resistant populations by using chemical and cultural practices that optimize yield potential. Plant nutrition, below and above ground, will need to be evaluated as well as the products that protect that nutrient investment. As we bring this crop year to an end, take time to develop a business plan for next year. Taking steps now will put you in a position to be successful in 2015. Jeff Bunting serves as GROWMARK’s Crop Protection Division manager. His email address is jbunting@growmark.com.
Fuel isn’t the only thing driving your success.
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 $239.82 $239.55 $.27
Lamb prices Negotiated, wooled and shorn, 104-162 lbs. for 154.94-174 $/cwt. (wtd. ave. 163.37); load 180 lbs. for $155/cwt.
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 10/23/2014 80.7 7.8 27.7 10/16/2014 74.3 17.7 28.3 Last year 85.5 16.6 27.0 Season total 300.2 394.3 251.8 Previous season total 261.9 571.4 175.3 USDA projected total 1700 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Businesses that are driven to succeed partner with FS. Our energy experts stay focused on what’s ahead, providing next generation fuel management tools and state-of-the-art software, along with a breadth of essential, quality products that point the way forward. FS is always discovering new ways to help customers optimize their operations and ensure they’re ready for what’s next.
TM
www.fssystem.com ©2014 GROWMARK, Inc. A14174
Corn Strategy
Large production levels not normal
Amid the angst about the large crops in the U.S. and the low prices, it’s important to recognize we’ve had a somewhat unusual situation. Not only have we had two consecutive large crops in the U.S., but the same is true in the world. And looking back over the last 50 years, that is a first. We had big yields and big crops one other time — three consecutive years in 1971, 1972 and 1973. There was another three-year run in 1984, 1985 and 1986, but overall yields weren’t as universally exceptional as the previous one, nor as good as they have been the last two years. This year, and last, yields were 5 and 6 percent above trend, respectively. One can also see the trend in yield may have taken on a steeper slope starting in 2000. Much of that is likely attributable to steady growth in yields and production in China. That in itself should be a warning flag. The Chinese had 14 consecutive years with nary a production hiccup. That’s unprecedented, not only for them, but for anyone. That may go a long way to
explaining why China’s government is willing to hold current inventories. Looking ahead, understanding the situation is important. For every 1 percent decline in yield’s departure from trend, production will be reduced nearly 20 million metric tons (mmt). If the world yield falls back to trend, it would be the equivalent of cutting 90-100 mmt from potential world output. Assuming consumption remains nearly the same, and at these prices, there’s a reasonable assumption today’s concern about supply quickly evaporates. Dividing up a 100 mmt output from a high potential level like the past two years would pare wheat output 35 mmt and coarse grain 65 mmt from potential levels. Assuming demand holds up at these general prices, those changes would flow to similar ending stocks reductions. The stocks/use ratio for wheat would drop closer to 23 percent with the coarse grain ratio dropping toward 13 percent. Those are closer to the levels that existed in 2007, the year before prices had an explosive run higher. We are not saying the market is poised to do that again, but it’s important to understand a reasoned look at the situation suggests the low prices we’ve seen this fall will not prevail either.
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ü2013 crop: The strength in prices suggests we may have seen an important low. Still, it may take until next spring for prices to return to acceptable levels. If you still have old crop, storing it for the long haul should pay dividends. ü2014 crop: The market may not have seen an important short-term high yet, but significantly higher levels aren’t likely. Use rallies to make needed sales. The market may chop sideways in a big range the next two to four months, building a base for an eventual move higher yet. We still see potential for $4 cash prices next spring. vFundamentals: As the corn harvest has moved north and west, we hear more reports of yields being a little disappointing. We expect USDA to show a slightly smaller yield on the Nov. 10 report, although it will still be historically large. There’s a chance it could be smaller yet on the final report in January. Meanwhile, demand remains a little more robust than many in the trade have been thinking.
Page 15 • Monday, November 3, 2014 • FarmWeek Cents per bu.
Soybean Strategy
ü2014 crop: The logistical problems in the soy meal complex helped carry soybean prices higher. But we are seeing early signs those issues are getting resolved. Use this rally to make sales if you are well behind recommendations. Still, we don’t want to add to sales given the performance. Ongoing strength suggests higher levels yet, but maybe not until late winter. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: We hear more talk about disappointing corn yields, but we have heard some for soybeans, too. Still, we don’t expect a downward revision on the coming report. Nevertheless, demand is proving to be robust, even in the face of negative price attributes out of South America. Brazilian weather has improved, and planting is accelerating. In
Argentina, the logjam that had been limiting producer sales appears to be breaking up, paving the way for the rest of their old crop to come to market.
Wheat Strategy
ü2014 crop: Set a December contract target of $5.50 for catch-up sales. Producers able to continue carrying wheat may do so with the goal of resuming sales near $6. ü2015 crop: We see little reason to price new crop unless Chicago July is more than $6. vFundamentals: Wheat futures are trading in the reflection of supply scenarios for our major competitors.
Russian surpluses still weigh on international markets, but concerns are developing for their winter crop. Australian wheat production will be lower than previously expected because of weather issues there. World wheat prices may have carved out a bottom this month, but U.S. prices are still at a premium to others. And terms of trade are moving further out of our favor. The dollar index made new highs last week and is as high as it has been since 2010. Prices will also be guided in the near term by U.S. winter wheat planting progress and conditions.
FarmWeek • Page 16 • Monday, November 3, 2014
Strategy advisory team tackles drones, big data issues Two of the hottest topics in agriculture, drones and big data, were the focus of Illinois Farm Bureau’s Farm Production and Marketing Strength With Advisory Team (SWAT) this year. As did the Conservation and Natural Resources SWAT and Local and State Government SWAT, our team met a few times to identify, discuss and provide input to IFB on important issues. Drones or unmanned aerial vehicles (UAVs) are catching the attention of farmers of all types and sizes of operations. That’s not surprising given the expectations the technology KRISTA SWANSON will be widely adopted throughout the industry. UAVs have great potential in scouting, monitoring weather impact — and even aerial chemical applications. However, like any new innovation, there are concerns with the power of the technology and how the information from it will be used. What liabilities will operators have? Who retains the data generated? What licenses/certifications will be required to operate? What agencies will get involved and how many regulations will be implemented? Current Federal Aviation Administration (FAA) rules state that UAVs may be used: • Only for aircraft no larger than 55 pounds; • If not flown near populated areas, above 400 feet, or within 5 miles of an airport; and • Only if the operator maintains direct visual line of sight. In addition, no money can be charged for the flight. UAVs generally are allowed only for hobby or recreational purposes. Current rules imply farmers may not use UAVs to scout crops as part of a commercial farming operation. IFB staff met with the FAA in Washing-
ton, D.C., in August and learned it will be two years before an official ruling on UAVs will be published. IFB encouraged FAA to proceed as expeditiously as possible to adopt rules to make agriculture uses permissible and suggested explicit acknowledgment of limitations that would protect our privacy. Our team spent quite a bit of time discussing how to address our concerns now to increase likelihood that regulations are favorable when they are implemented. IFB will use the team’s suggestions when working with FAA and other agencies toward UAV approval for agriculture use. Many farm leaders are anxious to use this technology, and farm organizations want to ensure all farmers have that opportunity. Farmers who currently own UAVs for hobby or recreational use should make certain they follow FAA guidelines. Any missteps would be widely publicized and could adversely affect the pace at which our industry gains approval for use of these tools. Serving on a SWAT allows Farm Bureau members to work with a group of farmers from all types of farming operations and regions of Illinois. It allows participants to dive deeper into topics and issues, and to become familiar with IFB policy or activities in that subject area. Furthermore, it provides grassroots input into IFB activities, programs and policy. To protect the future of agriculture, we must support each other and work together. The SWAT program provides a great opportunity to work together and develop leadership skills.
Krista Swanson served on the Farm Production and Marketing SWAT from 2013-2014. She farms with her husband and his family in Knox County and runs a seed business with her husband.
New fact sheets highlight USDA rural investments
As part of USDA’s commitment to strengthening rural economies, Secretary Tom Vilsack announced a new Illinois fact sheet illustrating the impact of USDA investSCHERRIE ments in rural GIAMANCO communities. Each state fact sheet highlights specific USDA investments in rural businesses, manufacturing, energy, water and other infrastructure development. They also outline how USDA is helping rural communities attract businesses and families by investing in housing and broadband. “This report shows what investment in rural America means in real terms for families and businesses across the country,” said Vilsack. The fact sheets reflect Secretary Vilsack’s efforts to strengthen the “four pillars”
of a new economy in rural America: developing a robust biobased economy; promoting exports and production agriculture fueled by increased productivity and research; encouraging conservation including land management, stewardship and outdoor recreational opportunities; and building a strong local and regional
food system to harness entrepreneurial innovation and help small and mediumsized family farms succeed in rural America. State fact sheets are available at {usda.gov/opportuni ties}.
Scherrie Giamanco serves as Illinois Farm Service Agency state executive director.
Letter to the editor
Conservation practices make EPA proposal unnecessary We already have federal, state and county agencies in place to control watersheds for farms and ranches in the state of Illinois. In 1862, Congress established the U.S. Department of Agriculture. Some USDA agencies include the Farm Service Agency and the Natural Resources Conservation Service. These agencies help put conservation practices on the land and also help with cost-sharing projects. What would you rather do: Work with the U.S. Department of Agriculture agencies in your area, or work with the Environmental Protection Agency and the U.S. Army Corps of Engineers which regulate “navigable waters” and extend civil penalties of up to $37,500 per day, per violation? ROBERT W. SCHLICHTING Apple River
Making a business case for rural America These days, it seems like it’s easier than ever to turn a good idea into reality. This is the era of Kickstarter, where entrepreneurs can connect with potential investors at the click of a button. Of course, it takes more than money to grow an idea. It takes an atmosphere that fosters creativity and rewards innovation. And at a deeper, less obvious level, it requires strong, secure infrastructure — roads and bridges, Internet access and community facilities like hospitals and schools — that improves connectivity and access to information, moves products to market, and makes communities competitive and attractive to new businesses and investments. Part of the challenge we face in rural America is that, in too many places, infrastructure is outdated and cannot support the same kinds of opportunities easily found in cities and larger towns. USDA itself has a strong record of supporting rural infrastructure upgrades. Our Rural Development program has a loan portfolio of more than $200 billion direct and guaranteed loans. Yet, there continues to be significant TOM unmet demand for investment in rural America that VILSACK exceeds our capacity. We can’t address this disparity alone, which is why USDA recently hosted the first-ever Rural Opportunity Investment Conference as part of the White House Rural Council. This conference brought together key people from the investment community, rural areas and government to make the business case for investing in rural America. We also announced a new $10 billion Rural Infrastructure Opportunity Fund. Supported entirely by private sector dollars with an initial investment from CoBank, a national cooperative bank and member of the Farm Credit System, and managed by Capitol Peak Asset Management, the fund offers a sustainable platform for new kinds of investors to inject billions into rural infrastructure projects. Up until now, we have faced a major hurdle when it comes to making the connection between the demand for investment in rural areas and the financial community. The new fund serves as a proof point that rural America is a promising investment. The fund represents a new approach to USDA’s support for jobcreating projects across the country. It allows us to act as a matchmaker between strong projects and potential private investors, and expands our capacity to facilitate rural investment beyond what we can do alone. Rural America needs strong, stable infrastructure to meet the current demand for food and farm products as well as the growing demand in areas such as renewable energy, local and regional food, and the bioeconomy. To attract young people to rural America, prevent rural “brain drain” and ensure a stable rural workforce, we have to make sure rural areas offer the same breadth of opportunity cities can offer. And that starts with strong, modern infrastructure. Tom Vilsack serves as the U.S. secretary of agriculture.
Letter policy
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