Farmweek november 10, 2014 by Illinois Farm Bureau

Don’t miss the Illinois Commodity Conference Nov. 25 with a theme of feeding the world. page 4

Given tighter crop margins, Purdue economists suggest a cautious approach to working capital. page 7

IFB Resolutions Committee forwards new drone policy Monday, November 10, 2014

The policy process is vital because . . .

Wayne Blunier, Woodford County, chairman Natural Resources Subcommittee: “We start with an individual member who sees a problem and brings it to everybody’s attention. An idea comes from an individual member, then goes to the county Farm Bureau, then to the Resolutions subcommittee and to the full (Resolutions) committee and then passes on to the (county Farm Bureau) delegates (at annual meeting).” Leon McClerren, Franklin County, chairman State/ Local Government Subcommittee: “Being the grassroots organization that we are, it’s unique that people still have a voice in this organization. We’re not a top down; we’re a bottom up.” Jeff Kirwan, Mercer County, chairman Agricultural Production/National Issues Subcommittee: “It gives us a way to communicate with members and to keep a focus on where we need to put emphasis. It keeps us current. Being able to review our policy every year and to revise it is one of our strengths.”

Periodicals: Time Valued

Got a farm bill question? Get answers during one of more than 80 upcoming IFB meetings. page 2

Two sections Volume 42, No. 45

BY KAY SHIPMAN FarmWeek

A year ago, unmanned aerial vehicles, commonly known as drones, hit few radar screens as an agricultural issue. Next month, county Farm Bureau delegates will consider guiding Illinois Farm Bureau with new unmanned aircraft systems policy, following action last week by the IFB Resolutions Committee. The Resolutions Committee and three subcommittees completed work on policy submittals and prepared final policy proposals for delegate consideration during the IFB Annual Meeting in Chicago Dec. 6-9. New drone policy illustrates IFB’s ability to address members’ ideas on current issues, according to IFB Vice President David Erickson, who chairs the Resolutions Committee. “Because the process is an annual event ... our members appreciate being able to bring real, current issues to the attention of the full organization,” Erickson said. “Our (policy development) timing is great. The legislative session is over,

Illinois Farm Bureau Vice President David Erickson, left, chairman of the IFB Resolutions Committee, chats with Resolutions Committee subcommittee chairmen, left to right, Jeff Kirwan of Mercer County, Wayne Blunier of Woodford County and Leon McClerren of Franklin County during a break in the committee’s work last week. (Photo by Ken Kashian)

and we know what issues we have to address.” The policy issues include ideas to help protect landowners and farmers from potential drainage damage resulting from installation of pipelines and flow lines related to energy projects. Another proposal would expand standardization and

certification of testing operators and equipment for all grain toxins. That recommendation surfaced after southeastern Illinois wheat farmers had problems with vomitoxin in their grain and learned a standardized test for the toxin doesn’t exist. Farm Bureau delegates also will note revised sections of

policy, especially crop insurance and risk management, that reflects accomplished changes to government programs or legislation. “This (process) gives us a chance to review our successes,” Erickson said of some policy revisions. Individual subcommittees, and later the whole committee, spent considerable time discussing several proposals that failed to pass. In each case, subcommittee leaders explained their reasons, and staff provided additional background in some instances. Erickson praised Resolutions Committee members and IFB staff for their work and looked forward to delegate action in December. Farm Bureau members shouldn’t take their policy development process for granted, according to Erickson. “When people who aren’t members observe the (annual meeting) process they find it fascinating — that many delegates looking at a document that thick in a professional manner. We shouldn’t sell it short,” Erickson said.

State looks ahead to new governor, lame duck session BY KAY SHIPMAN FarmWeek

Illinois voters ushered in a new Republican governor but no changes in the Democraticmajority makeup of the General Assembly. “We would like to offer our congratulations to Mr. Rauner, Ms. Sanguinetti and their campaigns on their elections as governor and lieutenant governor of Illinois,” said Illinois Farm Bureau President Richard Guebert Jr. “We’re looking forward to working with Governor-elect Rauner and his team as they prepare to take office in January,” Guebert continued. “We look forward to supporting the

governor-elect and his team during the transition period into their new roles.” Meanwhile, Gov. Pat Quinn emphasized he will continue working to raise the state’s minimum wage during the January lame duck session and his final days in office. Voters re-elected the other incumbent constitutional officers: Attorney General Lisa Madigan, Secretary of State Jessie White and Comptroller Judy Baar Topinka At FarmWeek presstime, the state lacked a decision in the race between Tom Cross and Mike Frerichs for treasurer. In the House of Represen-

tatives, a handful of races tightened, possibly due to “coattail effects” from the top of the state ticket, but incumbents maintained their seats, according to Kevin Semlow, Illinois Farm Bureau director of state legislation.

Federal election news on page 5

As a result, House Speaker Michael Madigan, D-Chicago, continues to hold a super majority with 71 Democrats compared to 47 Republicans, Semlow said. Likewise, Senate President John Cullerton, D-Chicago,

maintains a super majority in his chamber despite the loss of one seat. Sen. Mike Jacobs, D-East Moline, was defeated by Republican challenger Neil Anderson. With 40 Democratic senators, Cullerton has four more than the minimum 36 needed for a super majority, Semlow noted. The situation may create some “unique political strategies” with two Democrat super majorities and a Republican governor, he added. On the statewide ballot referendums, voters approved both binding constitutional questions to amend the Illinois Constitution.

See State, page 5

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Illinois Farm Bureau sets farm bill informational meetings FarmWeek • Page 2 • Monday, November 10, 2014

BY DEANA STROISCH FarmWeek

More than 80 meetings will be held across the state in the next few months to answer farmers’ questions about 2014 farm bill programs. The meetings, which begin next week, will include a presentation by Illinois Farm Bureau’s Doug Yoder and a question-and-answer session. “The new farm bill contains somewhat complicated options for farmers and landowners to consider,” said

Yoder, senior director of affiliate and risk management. “These are very important decisions as they can significantly vary safety net Doug Yoder coverage and protection over the five-year life of the farm bill, and they cannot be changed once they’ve been selected and the enrollment window closes at

What’s planned: County meetings:

• Nov. 18: Farm Credit, Mount Vernon, noon. Hosted by Jefferson County Farm Bureau. • Nov. 18: Kaskaskia Community College Lifelong Learning Center, Centralia, 6:30 p.m. Hosted by Washington, Clinton, Marion and Bond County Farm Bureaus and Bond, Clinton, Fayette, Jefferson, Marion and Washington county Farm Service Agency (FSA) offices. • Nov. 24: KC Hall, Carlinville, 10 a.m. Hosted by Macoupin County FSA.

• Nov. 25: Madison County Farm Bureau, Edwardsville, 1 p.m. Hosted by Madison County Farm Bureau. • Nov. 25: KC Hall, Carrolton, 6 p.m. Hosted by Greene and Jersey County Farm Bureaus and COUNTRY Financial’s West Central Illinois Agency.

Regional meetings:

IFB, the University of Illinois and FSA plan to host 14 regional meetings across the state. They will be three hours in length and more extensive. None are currently planned in November.

Quick Takes

Farm Service Agency (FSA).” Signed into law in February, the Agricultural Act of 2014 eliminates direct payments and modifies the target price program, replacing the Counter-Cyclical Payment (CCP) program with Price Loss Coverage (PLC). The bill also changes the revenue safety nets, replacing Average Crop Revenue Election (ACRE) with two Agricultural Risk Coverage (ARC) options — County ARC and Individual Farm ARC. Yoder said participants will receive full descriptions and

examples of the choices they must make, including: • Updating or retaining existing payment yields on each FSA farm; • Reallocating or retaining current base acreage on each FSA farm, and • Selecting the best of three safety net options for each of their FSA farms. Landowners have until Feb. 27 to decide whether to reallocate base acreage or update payment yields. Farmers can choose between ARC and PLC from Nov. 17 through March 31.

Those who don’t make a decision will automatically be enrolled in PLC. Yoder said other discussion topics will include Supplemental Coverage Option (SCO), a new crop insurance supplement that can be purchased on farms choosing PLC; payment limits; eligibility rules; conservation compliance and other crop insurance changesoptions authorized in the farm bill. Visit {FarmWeekNow. com} and {ilfb.org/farm bill} for updates.

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 farmers face. Q: Will landowners who cash rent their land be part of the decision to choose between Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC)? A: No, only those individuals sharing in the

risk of producing a crop will be allowed to participate in the ARC/PLC decision. Communication between landowners and tenants is highly encouraged, especially if the possibility of new tenants during the life of this farm bill exists. Farm Service Agency county offices, if asked, will provide which program was selected on their farms to 100 percent cash rent landowners.

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.

HARVEST PRICES SET FOR CROP INSURANCE — Harvest prices used in crop insurance payment calculations for corn stand at $3.49 per bushel and $9.65 per bushel for soybeans. University of Illinois Ag Economist Gary Schnitkey noted harvest prices came in well below 2014 projected prices. As a result, he said farmers may receive crop insurance payments despite relatively high yields, particularly for coverage levels of 80 percent and 85 percent. Find projected yield multipliers for calculating breakeven yields at {farmdocdaily.illinois.edu}. Actual yields below break-even yields will result in crop insurance payments, Schnitkey added.

(ISSN0197-6680) Vol. 42 No. 45 November 10, 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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Nitrogen best management practices trending in Illinois

Page 3 • Monday, November 10, 2014 • FarmWeek

BY KAY SHIPMAN FarmWeek

More Illinois farmers apply part of their nitrogen in the fall based on soil test results — and they’re waiting for recommended soil conditions. “I believe in our surrounding area they’re doing the right thing,” Jim McNelly, general manager of Christian County FS, told FarmWeek. Fall nitrogen applications comprise one part of nutrient stewardship that keeps nutrients in fields and available for crops. The University of Illinois Agronomy Handbook recommends no applications of fall nitrogen until the daily maximum bare 4-inch soil temperature remains less than 50F. The

Illinois State Water Survey posts those temperatures online at {isws.illinois.edu/ warm/soil/}. On average, northern and central Illinois soils reach that temperature after Nov. 1.

FarmWeekNow.com

Check out the latest fertilizer prices and soil temperatures at FarmWeekNow.com.

Farmers are aware of the potential losses if they apply nitrogen when soil temperatures are warm and nitrifying bacteria are active. “Guys are listening and they understand,” said Jason Wesslund, Certified Crop Specialist with Heritage FS Inc. of Cissna Park. McNelly added farmers in

his area also delayed fall applications to wait for improved soil conditions because rains had saturated the soil. Farmers’ use of nitrogen stabilizers with anhydrous applications has become another standard practice in Illinois. “They want to protect the nitrogen,” McNelly said. Plus McNelly’s and Wesslund’s farmer customers are more likely to divide their nitrogen applications into a two- or three-step process that includes a couple of applications in the spring as well as the fall. “Nitrogen is being managed more — the right time and place. They’re not putting on

Fuel prices ease; fertilizer prices remain strong

The financial relief felt by farmers, truckers and consumers at the fuel pump this fall hasn’t carried over into the fertilizer market. Spot prices of anhydrous ammonia the last half of October around the state increased $4.89 to an average of $721.25 per ton, according to the Illinois production cost report published by the Department of Agriculture. Anhydrous ammonia prices range from $685 to $775 per ton statewide, the report noted. The price of liquid nitrogen (up $7.57 per ton), diammonium phosphate (up $1.99), monoammonium phosphate (up $1) and potash (up $1.10) also increased the last two weeks of October. “Oil prices are falling, but at least in the near term, there’s not much relation (to fertilizer prices),” said Joe Dillier, Joe Dillier GROWMARK director of plant food. Oil prices this month dipped below $80 per barrel. Fuel prices the middle of last week subsequently hovered below $3 per gallon ($2.96) for regular gasoline and around $3.60 for diesel, down about a quarter from last year, according to the AAA Daily Fuel Gage Report. Oil and fuel prices slipped into a freefall in recent weeks as strong production boosted supplies. OPEC recently announced it does not plan to trim production as it appears to be in a price war with the growing North American fracking industry. Saudi Arabia last week even cut crude oil prices for its U.S.-bound oil shipments BY DANIEL GRANT

to help defend its market share. Production of anhydrous ammonia, on the other hand, has been limited by production issues around the globe in areas such as Algeria, Egypt, Trinidad and Ukraine. “Compounding production issues are helping support the price,” Dillier said. Some farmers, as a result of high prices and fieldwork delays caused by rain and a late harvest, appear to be trimming fall fertilizer application rates or postponing applications until spring. “We’ve had a modest amount of (anhydrous ammonia) movements to date,” Dillier said last week. “We don’t know whether farmers are cutting back. It’s been pretty wet, so it doesn’t take much rain to set us back even further.” Dillier believes the plunge in corn prices could lead to fewer planted acres in the U.S. next spring. But the idea that farmers could wait to fertilize more of their crops in the spring rather than the fall, or cut rates per acre could lead to other issues. “Big yields (this fall) ought to be supporting (fertilizer) application rates,” Dillier said. “The large yields obviously depleted soil levels of P (phosphorus) and K (potassium).” Lower fertilizer rates therefore could affect crop production potential next year. Meanwhile, logistic issues could surface next spring if farmers wait to apply their fertilizer at that time. “If we try to push it all to the spring, logistics can get pretty tricky,” Dillier said. “We saw that last spring with potash in western Canada.” Delaying fertilizer applications until spring as a pricing strategy could have some merit, but Dillier doesn’t foresee a major decline in prices. “There’s potential for

(increased) production further out, but I don’t anticipate a lot of change in (fertilizer) prices between now and spring,” Dillier said. “Longer term, we could seem more of an impact and price declines.” Most new nitrogen and phosphate production should begin to come online by 2016 and beyond, he added.

Larry Hummel of Dixon applies anhydrous ammonia on his Lee County farm. The 4-inch soil temperature in his area dropped below 50F, making conditions ideal for application. (Photo by Cyndi Cook)

all their nitrogen at one time,” Wesslund said, adding that change happened fairly quickly. Spring applications include the use of nitrogen stabilizers, too, McNelly added. Those fertilizer rates likely are based on soil test results. “In our area, there’s lots of soil testing going on,” McNelly said. Given the size of this year’s yields, he predicted farmers may base some nutrient rates, such as phosphorous and potassium, more on what was removed via harvested grain than their yield goals.

Wesslund noted the trend in soil testing is shifting to more frequent testing in spite of the extra expense. That’s a complete turnaround compared to 15 years ago, according to Wesslund. Then “it was hard to get them to consider soil testing,” so free tests were offered, he said. Now, when Heritage FS sends customers recommendations for which fields are due for testing, farmers take those recommendations and make arrangements right after the crop is out, he added.

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IFB files comments opposing “waters of the U.S.” rule FarmWeek • Page 4 • Monday, November 10, 2014

BY DEANA STROISCH FarmWeek Illinois Farm Bureau called on federal agencies to withdraw the proposed rule redefining “waters of the U.S.” and its coinciding interpretive rule, saying the rules don’t provide clarity or predictability to farmers. IFB, which represents three out of every four farmers, formally submitted its comments late last week to the Environmental Protection Agency (EPA) and Army Corps of Engineers. The deadline to submit comments is Friday.

The organization asked the agencies to work closely with stakeholders to craft a new proposal that addresses Clean Water Act (CWA) problems and minimally impacts farmers. Here are excerpts from IFB’s submittal: IFB on expanded jurisdiction ... “EPA and the Corps have defined for the first time what they consider to be a tributary. Making all ephemeral and intermittent tributaries jurisdictional is simply extraordinary. In practice, relying on the plain English

meanings of the proposed rule, literally millions of drainage features in every part of every farming region of the country will have characteristics — a bed, bank and ordinary high water mark — that would make them tributaries. This will expand the jurisdiction of EPA and the Corps in an unprecedented manner that conflicts with both the clear direction and intent of the Supreme Court’s prior numerous decisions that

Farm assets event teams with Illinois Commodity Conference Farmers who attend the annual Illinois Commodity Conference can double their value this year. The Commodity Conference, which will be held Nov. 25, teams up with the WILLAg.org Farm Assets Conference Nov. 24. Both events take place at the Marriott Hotel and ConFarmWeekNow.com ference Center in Normal. Go to FarmWeekNow.com for “Striving to more information about the Commodity Conference. Sustainably Feed the World” serves as the theme of this year’s Illinois Commodity Conference. Co-hosts of the annual event include the Illinois Beef Association, Illinois Corn Growers Association, Illinois Milk Producers’ Association, Illinois Pork Producers Association, Illinois Soybean Association and the Illinois Wheat Association. Farmers, landowners, agribusiness personnel and others interested in attending both events receive a combined, discounted rate of just $75 if

they register for the two conferences by Saturday. Otherwise, registration for the Commodity Conference costs $65 before Saturday and $90 after that. On-site registration the day of the event opens at 7:30 a.m. Attendees should register with their respective commodity organization or visit {ilcommodityconf.wordpress.com}. Registration for the Farm Assets Conference costs $25. Register online at {willag.org} or call 800-898-1065. Those who would like a hotel room on-site can call the Marriott Hotel and Conference Center at 309-862-9000. Commodity Conference speakers will address GMOs, farm marketing, water quality control, confined animal feeding operations, the proposed “waters of the U.S.” rule and sustainability. The Farm Assets Conference will feature analyst panels discussing cash grain, soybean and corn markets along with updates/outlooks for crop insurance, land values and farm bill sign-up.

sought to limit the federal jurisdiction over private lands.” On uncertainty ... “The drainage features that exist in farm fields in nearly every farming region in the country, many with visible channels, beds, banks and high water marks, all appear to be WOTUS. Whether they are or are not WOTUS will depend on the outcome of a formal determination, a process and status that will be a source of unprecedented uncertainty for farmers. Every farmer knows that field judgments will have their own uncertain outcome, depending on the subjective and different judgment calls made by different agency personnel.” “There also is the uncertainty and liability from the likelihood that farmers will face citizen suits alleging that drainage features are in fact tributaries.” On clean water ... “IFB has been thoroughly disappointed in EPA throughout this rulemaking process because of EPA’s claims that opposition to the proposed rule is equivalent to opposing clean water. This is an insulting ploy that belies the numerous efforts made in recent years by agriculture, industry, and local officials to improve water quality throughout Illinois and the rest of the country. It ignores the fact that nonfederal waterbodies are subject to local and

state water quality regulations.” On EPA’s tactics ... “Administrator Gina McCarthy has described certain questions regarding the proposed rule ‘ludicrous’ and ‘silly.’ EPA’s disparaging of the proposed rule’s critics serves no one. If EPA believes concerns with the proposed rule are unwarranted, the appropriate course of action would be for the agency to respond formally in the context of notice and comment procedures accompanying the current rulemaking. Belittling the proposal’s critics only furthers the impression that EPA has predetermined the outcome of the WOTUS rulemaking.” On opposition ... “Throughout the rulemaking process, hundreds of IFB members have filed individual comment letters with EPA voicing, not only their opposition to the proposed rule, but also telling powerful stories of the work they do on their own accord and through voluntary state, local and federal programs to benefit the environment. “Illinois farmers, and farms across the country, are not alone in their opposition to the proposed WOTUS rule. In fact, much like the Waters Advocacy Coalition on the federal level, approximately 30 organizations in Illinois have formed a state-level coalition in opposition to the proposed rule.”

Republicans become majority Senate party Legislative oversight committee

Page 5 • Monday, November 10, 2014 • FarmWeek

BY CHRIS ANDERSON Farmweek

Republicans will hold majority seats in the U.S. Senate for the first time in eight years. The party won 10 of the 13 most competitive races to take at least 52 seats in the Senate. Alaska’s and Virginia’s races are yet to be called, and Louisiana scheduled a runoff Dec. 6. Sen. Mitch McConnell, R-Ky., will become majority leader, while Sen. Harry Reid, D-Nev., announced his intention to run for minority leader. Illinois Sen. Dick Durbin announced he would like to continue as the Senate’s No. 2 Democrat. Republicans also picked up 13 seats in the U.S. House. Those included Murphysboro Republican Mike Bost, who defeated Democratic incumbent Bill Enyart in the 12th District. In the 10th District covering portions of Lake and

Cook counties, Republican Bob Dold won his rematch with Democrat Brad Schneider. House Speaker John Boehner will work with the largest GOP House majority (at least 244 members) since the days of President Harry Truman. Illinois Farm Bureau plans to immediately focus on defunding implementation of the Environmental Protection Agency’s proposed “waters of the U.S.” rule or restarting the process. “No one has been bashful about telling the world what the election results mean. We think they mean Congress must move to either defund or send the WOTUS rule back to the drawing board, and our next effort to drive home that message may come quickly,” said Adam Nielsen, IFB’s national legislative director.

Still time to register for CAFO meetings

Livestock farmers still have time to register for meetings about new state rules for Concentrated Animal Feeding Operations (CAFO) hosted by the Illinois Farm Bureau and Illinois Pork Producers Association (IPPA). Portions of the updated rules impact all livestock farms. The meetings are open to all farmers. Information will be presented from 4 to 6 p.m., followed by a meal at 6:30 p.m. In addition, IFB and IPPA will host a Bringing Your Livestock Farm Into Compliance webinar at 8 a.m. on Dec. 11. To register for the webinar, visit {https://ilfb.webex.com/ ilfb/onstate/g.php?d=6621747 77&t=a}. Presenters will include Ted Funk, IPPA ag engineer; Jim Kaitschuk, IPPA executive director; and Lauren Lurkins, IFB director of natural and environmental resources. Meeting dates, locations and registration information include: • Monday, Pike County Farm Bureau, 1301 E. Washington, Pittsfield, call 217-285-

2233 or email office@ pikecfb.org; • Wednesday, Sangamon County Farm Bureau, 2631 Beechler Court, Springfield, call 217-753-5200 or email amason@sangamonfb.org; • Thursday, Nashville Community Center, 455 S. Washington St., Nashville, call Washington County Farm Bureau at 618-327-3081; • Nov. 17, Effingham Knights of Columbus Hall, 1501 W. Fayette Ave., Effingham, call Effingham County Farm Bureau at 217-342-2103 or email ecfbmgr@consolidat ed.net; • Nov. 18, Knox Agri Center, 180 S. Soangetaha Road, Suite 101, Galesburg, call Knox County Farm Bureau at 309342-2036 or visit knoxcfb.org; • Nov. 19, DeKalb County Farm Bureau, 1350 W. Prairie Drive, Sycamore, call 815-7566361; and • Nov. 20, Evergreen FS auditorium, 402 N. Hershey Road, Bloomington, call the McLean County Farm Bureau at 309-663-6497 or email anna@mcfb.org.

Prairie Central FFA teams from Fairbury claimed first place in two career development event competitions at the recent National FFA Convention in Louisville, Ky. The teams representing Illinois won the Agricultural Technology and Mechanical Systems contest and the National FFA Milk Quality and Products competition. Prairie Central FFA advisers include Darren Ropp, Kyle Miller, Becky Freed and David Rothert. The Ag Tech team included: Tyler Edelman, first place individual in the nation; Clayton Teubel, sixth place individual; Seth Miller and Camden Yoder,

both gold individual rankings. The Milk Product team included: Trenton Edelman, first place individual in the nation; Caitlyn Ifft, third place individual; Laine Honegger, sixth place individual; and Harmony Slagel, gold individual ranking. Tommy Justison, Hillsboro FFA member and current Illinois FFA vice president, won the Diversified Crop ProductionEntrepreneurship Award with his Supervised Agricultural Experience program. In addition, 111 Illinois FFA members received their American FFA Degree, the highest individual membership level.

Illinois FFA’ers win national FFA awards

State

Continued from page 1 Those will add a voters’ bill of rights and a crime victims’ bill of rights. Both received more than the required twothirds yes votes of those voting on those questions. Voters also approved three nonbinding advisory questions. Those asked about raising the minimum wage to $10 per hour, mandating insurance coverage of birth control, and creating an additional 3 percent tax on individuals with personal incomes of $1 million or more.

approves horizontal fracturing rules

The state Joint Committee on Administrative Rules (JCAR) approved rules for high volume horizontal fracturing last week. JCAR put forward rules that address the concerns of Illinois Farm Bureau and the GROW-Illinois Coalition, according to Bill Bodine, IFB associate director of state legislation. JCAR members and their staff did an incredible amount of work to ensure the rules adhered to the law passed by the General Assembly, Bodine said. Having a rule that adheres to the law will allow this development opportunity to occur with appropriate regulations that protect land and water resources, he added. IFB staff will review the complete rules after they are published and will provide Farm Bureau leaders with information, Bodine said. With the last step of the rulemaking process complete, the Illinois Department of Natural Resources may begin to develop a permitting process.

Colorado, Oregon voters defeat GMO labeling; Hawaiians pass moratorium

Voters in Colorado and Oregon last week defeated efforts to label foods containing GMOs. Meanwhile, Maui County, Hawaii, voters narrowly approved a moratorium on the testing or cultivation of genetically modified or engineered crops in the county until further health and environmental tests are conducted. American Farm Bureau Federation supports the proposed Safe and Accurate Food Labeling Act, which would eliminate consumer uncertainty created by a state-by-state patchwork of labeling laws, advance food safety, inform consumers and provide consistency in labeling.

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FarmWeek • Page 6 • Monday, November 10, 2014 Bernie Walsh, Durand, Winnebago County: We had about .25 of an inch Monday night (Nov. 3), so we were able to keep harvesting. There is still lots of corn left to pick here in northern Illinois. We now have between 30 to 40 percent left to go. Moistures are coming down, even on the long-season corn, to the low 20s. Yields are still impressive. Have a safe week. Pete Tekampe, Grayslake, Lake County: It was another great week for harvesting in Lake County. Beans are mostly done with yields a little above average. Corn is about 50 percent harvested with yields about average. Would have had a great crop if the lower spots didn’t drown out. Winter wheat is growing, but needs a good shower to get the late-planted crop going. Remember — be safe finishing up harvest. Leroy Getz, Savanna, Carroll County: We had cold and windy weather with .2 of an inch of rain. The Beaver Moon is full, and cornfields are looking empty. Many producers are finishing harvest. Anhydrous ammonia is being applied along with a great deal of tillage work. We pray that everyone has a safe finish. Ryan Frieders, Waterman, DeKalb County: We finished harvesting our crops last week without any major breakdowns or accidents, and for that, I am extremely thankful. I recently moved my office from the combine to the tillage tractor. I don’t know if it’s a promotion, but I still have the same great view out my window. There is still a lot of corn to harvest in our area. Fall work is being done as the days get shorter and the temperature gets colder. Larry Hummel, Dixon, Lee County: This year’s corn yields, if anything, are consistent. Twenty bushels are all that separate the top from the bottom. Corn harvest has been moving along nicely with moisture levels down to 20 percent and less. There might be about a fifth of corn left to harvest, and I haven’t seen a standing field of soybeans in more than a week. Ken Reinhardt, Seaton, Mercer County: There was a .1 to .3 of an inch of rain midweek, but corn harvest grinds on. Bins are getting full and lines are getting long at storage terminals. I finished in Mercer County Wednesday and hoped to finish in Henderson County during the weekend. The only sub-200 bushel yields I have heard of were in corn that was flattened June 30 and did not recover and pollinate as well as the majority of hybrids were able to. Ron Moore, Roseville, Warren County: We only received a small amount of rain last week. Harvest is quickly coming to an end in this area. We should be finished with corn this week barring any breakdowns. Yields on corn have been pretty consistent in the 220 to 230 bushel per acre range. This is a little unusual as variability is usually 40 to 50 bushels per acre. Lots of fertilizer being applied now, both dry and anhydrous ammonia. My cover crop rye is doing very well — green and growing. Looks like it will be a good test for the benefits on our farm. Jacob Streitmatter, Princeville, Peoria County: Harvest is wrapping up around the area. Overall, it was a good fall with decent yields. My soybeans were above average and right on average.

Mark Kerber, Chatsworth, Livingston County: Our goal of finishing harvest by Halloween was not achieved this year. Good crops and rainouts, along with elevator jam ups, have made harvest a little slower than normal. It’s hard to find a field of soybeans left to harvest, but a fair amount of corn to finish, depending on which direction you travel in the county. With good weather, farmers will be preparing the soil for next spring.

Ron Haase, Gilman, Iroquois County: Almost all of the soybeans have been harvested in our local area and more than 75 percent of the corn has been removed. We fell short of getting all of our soybeans out by 18 acres. The .4 of an inch of rain that fell Tuesday took the moisture in soybeans from 10 to 11 percent up to 14 percent. Then the next rain of .25 of an inch Wednesday raised the soybean moisture up to 17 percent. So, we planned to return to harvesting corn Friday. Local prices for Nov. 6 closed at nearby corn, $3.34, and nearby soybeans, $10.03.

Doug Uphoff, Shelbyville, Shelby County: We have had record yields for our farms with some corn yields coming in from 261 to 175 bushels per acre, and beans at 74 to 57 bushels per acre. I told Elliott that he will probably never see this kind of crop for a long time. I know I never have. However, we have some corn still in the field. Some will need a freeze or very good drying conditions to get out. Fieldwork has a long way to go and a lot of ruts to fill in. We had .8 of an inch of rain last week. David Schaal, St. Peter, Fayette County: Precipitation amounts varied from .75 of an inch to more than an inch in the area Tuesday. Harvest resumed, but tillage, spraying and fertilizer application will wait a few more days. Harvest in the immediate area is on the downhill slide.

Brian Schaumburg, Chenoa, McLean County: Harvest is down to the short rows and NH3 applications are starting up, despite cold temperatures that are hampering product flow rates. Still a lot of tillage to be done to fill in ruts. Markets continue to hold support. Corn, $3.35, Jan., $3.52, fall ’15, $3.80; soybeans, $9.97, Jan., $10.02, fall ’15, $9.68; wheat, $4.74.

Jeff Guilander, Jerseyville, Jersey County: Harvest 2014 is winding down, the impact of which will be felt for years to come. Waterways need to be rebuilt, deep tillage for ruts and compaction,implements washed, and let’s not forget fall fertilizer for next year. Two weeks ago, we needed 10 good days to finish harvest. Now, we need 10 good days for catch-up.

Steve Ayers, Champaign, Champaign County: We are literally down to the short rows — 136 rows to be exact. We planned to finish Friday after .35 of an inch of rain earlier in the week. Kudos to area grain handlers for taking care of the record crops. Roger Miller of Premier Co-op estimated that 90 percent of corn and 97 percent of soybeans are harvested. Fieldwork is in full swing. Dry and lime is going down, and anhydrous tanks are appearing in fields.

Dave Hankammer, Millstadt, St. Clair County: A soaking .7 of an inch of rain fell on Election Day, leaving fields muddy and delaying harvest for a couple days. Despite harvest progress, several fields of corn, soybeans and milo remain to be collected from the field. Local grain bids are corn, $3.46; soybeans, $10.27; wheat, $4.40. Have a good week.

Wilfred Dittmer, Quincy, Adams County: More grain has disappeared from the fields. Some fall application of chemicals and some tillage has begun. No measurable rain to report.

Carrie Winkelmann, Tallula, Menard County: Good weather has led to a large majority of crops being removed from fields. We finished with corn Wednesday. I would estimate beans are 97 percent harvested, and 92 percent of corn is harvested with most of what is left being in wet areas. Anhydrous ammonia application and fall tillage is well under way. Tom Ritter, Blue Mound, Macon County: We received .7 to .8 of an inch of rain early last week, which made us slow down for a day or two. Muddy fields seem to be the biggest issue. Corn harvest is more than 90 percent complete and soybeans, more than 95 percent complete. A little bit of tillage has been going on. Yields for both corn and beans have been above average. Todd Easton, Charleston, Coles County: Periodic precipitation has continued to make harvest operations interesting, but we have never been kept out for more than a day or two. About 5 percent of the soybean crop is left to whittle down. About 10 percent of the cornfields are standing. Fall tillage operations are well under way along with dry fertilizer applications. Anhydrous is just getting started. Stay safe as we reach the end of this long harvest season. Jimmy Ayers, New City, Sangamon County: A number of farmers called to let me know they wrapped up harvest. We finished Monday (Nov. 3). Our yields are better than average, but maybe not better than I anticipated. Quite a bit of fieldwork being done with some putting anhydrous on to try to get a jump on next year’s crop.

Rick Corners, Centralia, Jefferson County: We had 1.2 inches of rain Tuesday. Now it’s really muddy! There sure are lots of crops still left in the field. I could count all the wheat fields I saw without taking my shoes off, and those that were up on one hand. Most everyone I’ve heard is really disappointed in the double-crop beans yields that have been harvested. Kevin Raber, Browns, Wabash County: Rainfall amounts of .6 to .8 of an inch has slowed field activities. I was hoping to return to the field Friday. Still have the last of my doublecrop beans to harvest and a lot of fieldwork to finish. The earlyseeded wheat is up and growing, but the wheat I’ve drilled is a little slow on emergence. Dean Shields, Murphysboro, Jackson County: I have 100 acres of very late beans left to harvest, and then I will call it another year. I still have fall tillage work to do. The wheat is looking good, but because of the rains, not a lot of wheat has been planted. Glad to see prices coming up a little bit. Randy Anderson, Galatia, Saline County: I am up to 80 percent complete. Had around .7 of an inch midweek, but was back in the next day. Only thing left is double-crops and some corn. Spreading fall fertilizer, lime and tillage is taking place, too.

Ken Taake, Ullin, Pulaski County: We managed to finish our corn last week, and we made some more progress on harvesting our soybeans before the rains came Tuesday. We received about .75 of an inch of rain. It may be slow getting the rest of harvest finished. Please remember to be careful.

Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.

Crop returns raise caution flags; working capital crucial

Page 7 • Monday, November 10, 2014 • FarmWeek

The current range of crop prices could linger not only this year but well into next year and beyond. Farmers therefore should analyze the cost structure of their operations and take a cautious approach to draining additional working capital on major new expenses, according to economists at Purdue University. “We have some negative margins in 2014 already, and it (a period of tighter crop margins) will continue in 2015,” Michael Langemeier, associate director of the Purdue University Center for Commercial Agriculture, said during a recent webinar. Record crop production this

year (USDA currently estimates U.S. production this fall will total 14.475 billion bushels of corn and 3.927 billion bushels of beans) took the edge off markets compared to historic highs in recent years, and likely will lead to a buildup of stocks. “It appears supply has caught up (after dipping to historic lows in recent years),” said Chris Hurt, Purdue University ag economist. “We’ve got a lot of prod u c t i o n c a p a c i t y t h a t wa s brought in” around the world. Demand remains strong for both crops, particularly international demand for U.S. soybeans, but prices could linger near current ranges rather than skyrocket back to levels of the previous three years. The premium for soybeans compared to corn also

could dissipate. “Beans and corn (prices) will correct some. Operating returns for corn right now are much lower,” Hurt said. “By next spring, I think corn and bean prices will be more back in equilibrium.” With lower crop returns forecast this year and in 2015 compared to 2011-13, far mers should work on managing their cost structure and protect working capital, according to Michael Boehlje, Purdue University ag economist.

Purdue University economists expect farmland prices and cash rents will soften in coming months and years as crop prices moderate from historic highs. But they don’t foresee a 1980s-style market crash. “Cash rents the last 10 years doubled and land values tripled,” Michael Langemeier, associate director of the Purdue University Center for Commercial Agriculture, said during a recent webinar. “The increase has been so rapid, you certainly expect some correction.” The r un-up in far mland prices occurred in large part to record crop prices that gave farmers more bidding power along with historically low interest rates. But now economists believe crop prices could remain relatively flat, while interest rates could rise. Both outcomes would apply downward pressure on farmland prices.

“Even a 1 percent increase (in interest rates) is a large increase percentage-wise,” said Michael Boehlje, Purdue economist. “It has a big impact (on the farmland market).” Langemeier looks for a 5 to 10 percent correction of land prices/cash rents in the next two to three years with possibly a larger dip in land values longer term if crop prices plateau near current levels. Cash rents also could post a modest decline rather than a significant drop. “Even though the margin for corn is down about $200 (per acre), I don’t expect cash rents will plummet,” Langemeier said. Land and rental values may decline slowly as many farmers have a financial cushion from the recent record crop prices. In other cases, cash rental agreements/rates set at high levels cover multiple years. “We’re probably looking at a small decline in cash rents rather

than a collapse,” Langemeier said. The National Council of Real Estate Investment Fiduciaries (NCREIF) third quarter survey recently found the Farmland Index return (1.45 percent) was the lowest since the third quarter of 2010. However, the farmland return still remains slightly above the third quarter, longterm average of 1.4 percent. “Both the income and appreciation returns for the Farmland Index in the third quarter were lower than the third quarter returns from a year ago,” said Christopher Jay, chairman of the NCREIF Farmland Committee and director of financial analysis with Prudential Agricultural Investments. “However, there continues to be strong interest in many markets for high quality farmland from both institutional investors as well as local farmers on property that comes up for sale.” — Daniel Grant

BY DANIEL GRANT FarmWeek

Economists predict correction, not crash, of land prices

Listen.

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“It’s really important to protect that working capital, which may not be good for equipment manufacturers,” Boehlje said. “And you (farmers) have to work harder on your cost structure. What you pay for inputs sets your cost structure.” Farmers also should consider restructuring debt while interest rates remain low. “A lot of land was bought on a 10-year payout (schedule). That’s a short period to pay it off,” Boehlje said. “You need to consider lengthening them (loans) out. Recognize we’re in a different business climate and get (loans) restructured now.” The situation for livestock producers appears much different. Record prices and lower feed costs should boost prof-

itability and encourage expansion, according to Jim Mintert, director of Purdue’s Center for Commercial Agriculture. “Steer prices in 2014 are up 50 percent from 2013, and next year they’ll probably be higher,” Minter t said. “People will respond to that. Although, the first year we could see an increase in cattle slaughter actually is 2017.” Hog producers, on the other hand, are expected to respond to profitability and boost production by next year. “We’re seeing evidence of an increase in the production of hogs,” Mintert said. The breeding sow inventory in Illinois increased from the previous quarter by 10,000 head, up 2 percent from a year ago.

Milk prices begin to drift lower

The Class III price for milk adjusted to 3.5 percent butterfat for the month of October was announced at $23.82 per hundredweight. This represents a dip of 78 cents from the previous month’s announcement. Milk prices had been expected to move lower as production starts to climb. Corn silage quality and quantity has been excellent with starch readings that are through the roof. This high quality feed allows the cows to respond with more milk in the bulk tank.

Read.

The most people, on the ground, in Illinois, covering Illinois agriculture for you. Get to know Alan Jarand

RFD Radio Network® (RFDRN) Anchor & FarmWeekNow.com contributor Alan has helped you start your day for over three decades as an anchor with the RFD Radio Network®. He believes weather forecasts, trends and commodity prices are always of interest, EXW KLV IDYRULWH W\SH RI VWRU\ WR FRYHU LQFOXGHV WKH ,OOLQRLV HFRQRP\ +H OLNHV WR XQHDUWK VSHFL¿F examples of the importance agriculture plays, such as job creation and retention, throughout the state and nation.

IAA Foundation caps successful year U of Iâ&#x20AC;&#x2122;s Easter to co-chair

FarmWeek â&#x20AC;˘ Page 8 â&#x20AC;˘ Monday, November 10, 2014

IFB annual meeting activities announced BY KAY SHIPMAN FarmWeek

llinois Agriculture in the Classroom (IAITC) will reap the dividends of successful summer and fall fundraising events hosted by the IAA Foundation. â&#x20AC;&#x153;A great year of fundraising means the IAA Foundation will contribute $140,000 toward the IAITC program year,â&#x20AC;? said Susan Moore, IAA Foundation director. This springâ&#x20AC;&#x2122;s 5K run netted $15,250 for the foundation and included a host of agriculture awareness activSusan Moore ities for children and adults. In June, more than 200 golfers participated in the IAITC Golf Outing at the Wolf Creek Golf Club and Elks Country Club in Pontiac. The event netted $41,635. In September, 45 cyclists spread the message of agriculture and bike safety to 4,000 students through school stops in Stephenson, Carroll, Jo Daviess, Ogle and Winnebago counties. The 19th annual Bike Ride for IAITC netted $40,260 for ag literacy. â&#x20AC;&#x153;This increased donation is attributed to the generosity of our Farm Bureau members, county boards and staff as well as business partners who sponsor our events. We are grateful for their contributions to help fund ag literacy.

â&#x20AC;&#x153;The 2014 Illinois Farm Bureau annual meeting will kick off the first event to help support the 2015 IAITC year, and we hope to be off to a great start for the new fundraising year,â&#x20AC;? Moore said. At the IFB annual meeting in Chicagoâ&#x20AC;&#x2122;s Palmer House, the IAITC fundraising activities of the ice cream social and live auction start at new times and a new date. The ice cream social sponsored by Prairie Farms Dairy will start at 1:15 p.m. on Sunday Dec. 7 in the Grand State Ballroom. A live auction will start at 2 p.m. Items up for bid may be viewed online at the IAA Foundation website {iaafoundation.org}. The silent auction will start Saturday Dec. 6 and bidding will continue until Dec. 8. Currently, the foundation is accepting donated items for the silent auction either with an online form or by contacting the foundation office at 309-557-2230. The trivia contest will be Dec. 7 with doors opening at 7:30 p.m. and the contest starting at 8:15 p.m. This yearâ&#x20AC;&#x2122;s theme is A Very Griswold Christmas. Teams of eight that register before Nov. 24 will qualify for a reduced registration fee. After that date, teams will register at the door. Registration is limited to the first 35 teams. Teams will compete for prizes in county Far m Bureau and staff-corporate divisions. A prize also will be awarded to the team with the best costumes and table dĂŠcor. For more information or to register a team, go online to {iaafoundation.org/iaaf/ Events/AnnualMeeting.html}.

antibiotic resistance task force

University of Illinois President Robert Easter will co-chair a new Task Force on Antibiotic Resistance in Production Agriculture, the Association of Public and Land-grant Universities (APLU) and the Association of American Veterinary Medical Colleges (AAVMC) announced last week. The task force includes representatives from U.S. agriculture colleges/land grant universities and veterinary colleges as well as representatives from animal agriculture and the pharmaceutical industry. The task force will advise the federal government on a research agenda and disseminate information on the use of antibiotics in agriculture. On Sept. 18, the Presidentâ&#x20AC;&#x2122;s

Council of Advisors on Science and Technology (PCAST) released a â&#x20AC;&#x153;Combating Antibiotic Resistanceâ&#x20AC;? report that made several recommendations. President Obama also issued an executive order that describes the antibiotic resistant bacteria problem as a national security priority and directs various executive branch departments and agencies to develop a specific plan of action by mid-February 2015 to address antibiotic resistance and protect public health. Once policies are established, APLU member institutions will help educate farmers and the public about the appropriate use of antibiotics in agriculture and veterinary medicine, and the design of effective stewardship programs.

Bioenergy, sustainable ag tours set Nov. 18-20

Multiple uses for bioenergy crops will be the focus of a Bioenergy and Sustainable Agriculture Conference Nov. 19-20 at Richland Community Collegeâ&#x20AC;&#x2122;s Shilling Community Education Center, Decatur. On Nov. 18, participants may join optional preconference field tours in Urbana, Charleston, Pana and Pesotum. The Green Lands Blue Waters (GLBW) is combining its conference with the Agricultural Watershed Instituteâ&#x20AC;&#x2122;s annual Sangamon Watershed Celebration. Conference session topics include perennial biomass, bioenergy technologies and markets, and watersheds and landscapes. A $90 registration fee includes the two-day conference, meals and refreshments, and the evening watershed celebration. Individuals registered for the conference may join the optional preconference tours at no additional cost. For details or to register, visit {agwatershed.org/}.

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OND — 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 Tuesday. ROWN — Farm Bureau will co-host a Dakota Pipeline meeting at 7 p.m. Wednesday 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 7732634 for more information. Reservations are not required but appreciated. ASS-MORGAN — Farm Bureau will cohost a farm legacy seminar for members from 9 to 11 a.m. Nov. 20 at Jacksonville Country Club. Maggie Wienke, COUNTRY Financial, will speak. Call the Farm Bureau office at 245-6833 for reservations by Wednesday. • Farm Bureau will co-host a retirement income seminar from 6 to 8 p.m. Nov. 19 at

Jacksonville Country Club. Maggie Wienke, COUNTRY Financial, will speak. Call the Farm Bureau office at 2456833 for reservations by Wednesday. HRISTIAN — Farm Bureau will host a private pesticide applicator review class from 10 a.m. to noon Dec. 3 at the Farm Bureau office. Gary Letterly, U of I Extension, will speak. Call the Farm Bureau office at 8242940 to register by Dec. 1. OOK — Tickets are available for members to Ringling Bros. and Barnum & Bailey Circus Nov. 19-30 at the United Center. Call the Farm Bureau office at 708354-3276 for details. ANCOCK — Farm Bureau will host a pipeline meeting for landowners at 2 p.m. Wednesday 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. ASALLE — Farm Bureau is accepting orders for fruit and cheese. Fruit will be delivered the first week of December and cheese will be delivered the

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second week of December. Deadline to order is Nov. 21. Call the Farm Bureau office at 433-0371 for order forms or more information. ADISON — Farm Bureau will host a farm bill informational meeting at 1 p.m. Nov. 25 in the Farm Bureau auditorium. Brad Grotefendt, Madison County FSA, and Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 656-5191 to register. CDONOUGH — Farm Bureau will cosponsor a marketing outlook meeting at 11:30 a.m. Nov. 24 at Spoon River College Outreach Center. Steve Johnson, Iowa State University Extension, will speak. Cost is free for members and $10 for nonmembers. Call the Farm Bureau office at 837-3350 to register by Nov. 20. ERCER — Farm Bureau will co-host a crop market outlook and farm estate and transfer planning seminar at 10 a.m. Nov. 25 at Aledo VFW Hall. Steve Johnson, Iowa State University Extension, and Rick Morgan, COUNTRY Financial, will speak. Cost is $10. Call the Farm Bureau office at 5825116 by Friday to register.

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Page 9 • Monday, November 10, 2014 • FarmWeek

ONTGOMERY — Farm Bureau will host a farm bill meeting at 10:30 a.m. and 4 p.m. Dec. 2 at the Farm Bureau office. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 532-6171 to register by Nov. 26. EORIA — Order forms for Florida citrus and Terri Lynn nuts are available at {peoriacountyfarm bureau.org} or by calling the Farm Bureau office at 6867070. Deadline to place orders is Nov. 20. Orders may be picked up at the Farm Bureau office on Dec. 17. IATT — Farm Bureau is seeking barn wood from each township in Piatt County to use in a display in the

Farm Bureau office. If you have barn wood to donate, call the Farm Bureau office at 762-2128 or email ezelhart@piattfs.com. T. CLAIR — Farm Bureau will host a farm bill information meeting at 7 p.m. Thursday at the Farm Bureau auditorium. Barb Burns, St. Clair County FSA, and Gary Schnitkey, U of I, will speak. Call the Farm Bureau office at 233-6800 for reservations. CHUYLER — Farm Bureau will co-host Dakota Pipeline meetings at 2 p.m. Wednesday at Hancock County Extension Center, Carthage; and 7 p.m. Wednesday at American Legion Post 374, Mount Sterling. Call the Farm Bureau office at 322-4353 for reservations by Tuesday.

Tuesday: • FarmWeek: “The Early Word” • Freese-Notis Weather • Mark DePue, Abraham Lincoln Presidential Library: Veterans Day Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • David Yepsen, Paul Simon Public Policy Institute: post-election possibilities in Springfield

and Washington Thursday: • Evan Smith, Cherry Capital Foods: Local and Regional Food Summit • Beck’s Hybrids • Gail Stratman, FMC Ag Solutions: winter preparation • Jim Call, United Soybean Board: soy checkoff priorities Friday: • Don Schaefer, Mid-West Truckers Association: the election and transportation funding • Rita Frazer, RFD Radio Network: live from the National Association of Farm Broadcasting Convention

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FarmWeek â&#x20AC;˘ Page 10 â&#x20AC;˘ Monday, November 10, 2014

Harvest winds down; Base seed decisions on performance Arctic air approaches Corn and soybean harvest are well under way, and most of us are overwhelmed with the type of corn yields we are getting. It is amazing what genetics can do today compared even with hybrids from just five years ago. Itâ&#x20AC;&#x2122;s not only corn; in most cases, soybean yields have been surprising. Genetics for both crops that are being provided today are just unbelievable. Couple that with the traits we have to protect yield potential, and here we are today! So, how do you decide what to plant next year? This year, most everything is performing. Mother Nature was good to us. With that in mind, how are you going to decide? There are so many choices when it comes to trait packages, refuge options (in the bag or not in the bag), maturity, health package â&#x20AC;&#x201D; I could go on and on. The market has made it more confusing than ever. Do I have all the above- and below-ground protection I BY MATT HYNES

BY DANIEL GRANT FarmWeek

Most concerns about harvest delays shot out the backs of combines in recent weeks. Illinois farmers from Oct. 20 to Nov. 3 harvested nearly half (46 percent) of soybeans and more than one-third (34 percent) of the corn crop. Overall, harvest as of the first of last week was 83 percent complete for beans and 77 percent complete for corn, just 1 percent behind average for both crops. â&#x20AC;&#x153;We kind of caught a break the second half of October (and early November),â&#x20AC;? said Jim Angel, state climatologist with the Illinois State Water Survey. â&#x20AC;&#x153;We had warmer and drier conditions that were much more favorable (for fieldwork).â&#x20AC;? Corn harvest progress in the state the first of last week ranged from 90 percent complete in the southwest to 72 percent complete in the northeast. Soybean harvest progress ranged Jim Angel from 91 percent complete in the northeast to 74 percent in the southwest. Weather conditions last month were quite variable with heavy rain much of the first half of the month followed by warmer, drier air in the second half. â&#x20AC;&#x153;We started the month very wet,â&#x20AC;? said Angel, who noted many locations in west and central Illinois last week received 6 to 8 inches of rain with some locations topping 9 inches. â&#x20AC;&#x153;Many locations got over twice the normal precipitation.â&#x20AC;? Precipitation in northern Illinois last month was closer to normal in a range of 2 to 4 inches. Statewide, precipitation in October averaged 4.5 inches, 1.2 inches above normal, which made it the 15th wettest October on record. The average temperature, 54 degrees, was close to normal for the month. Weather over the weekend and into the early part of this week was forecast to be close to average, with highs in the 50s and lows in the 30s, before a blast of cold, dry Canadian air arrives the middle of this week. â&#x20AC;&#x153;Expectations right now are for an unseasonably cold spell,â&#x20AC;? Angel said last week.

M A R K E T FA C T S

need? Am I in compliance with my refuge? Do I really need above-ground protection? And those inquiries are only for corn! Soybeans are the same. Which RR trait am I getting? Is weed resistance an issue? Which trait do I need? Does that trait have the best genetics? What about sudden death synMatt Hynes drome, nematodes and iron chlorosis? There are so many precise and situational choices to make. Whatâ&#x20AC;&#x2122;s a producer to do? It all comes down to performance. Who can help you sort through all these questions to come up with the best selection of products to maximize your profits? The answer is your local FS crop specialist. They know your fields, your preferred farming practices, and are in your fields

daily, understanding how hybrids and varieties perform in your local soil. They interact with and create the prescription fertility and crop protection programs developed specifically for you. Why would you want anyone else to do that for you? Let them prove their expertise on how to maximize your profits per acre. Ask them about the â&#x20AC;&#x153;Bullâ&#x20AC;? and the â&#x20AC;&#x153;Herd Package.â&#x20AC;? The FS InVISION corn brand is outperforming its competitors consistently. FS HiSOY soybeans are once again providing outstanding performance; donâ&#x20AC;&#x2122;t miss out on varieties from the first proprietary soybean brand celebrating its 50th anniversary. Your success is the key to our future. Let our crop specialists help show you the path to success, starting with your seed decisions.

Matt Hynes serves as GROWMARKâ&#x20AC;&#x2122;s seed sales and marketing manager. His email address is mhynes@growmark.com.

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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-$71.54 $49.17 40 lbs. (cash) $77.00-$88.00 $81.33 Receipts

This Week 73,077 *Eastern Corn Belt prices picked up at sellerâ&#x20AC;&#x2122;s farm

Last Week 67,717

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $85.64 $84.89 $0.75 $63.37 $62.82 $0.56

USDA five-state area slaughter cattle price (Thursdayâ&#x20AC;&#x2122;s price)

Steers Heifers

This week $165.70 $168.00

Prev. week $167.50 NA

Change - $1.80 NA

CME feeder cattle index â&#x20AC;&#x201D; 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week $240.54 $239.82 $.72

Lamb prices Negotiated, wooled and shorn, 123-161 lbs. for 155-175.25 $/cwt. (wtd. ave. 164.98)

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Export inspections (Million bushels) Week ending Soybeans Wheat Corn 10/30/2014 101.8 7.7 16.8 10/23/2014 83.2 7.8 28.9 Last year 82.6 8.9 31.4 Season total 404.5 402.0 269.8 Previous season total 344.5 600.4 206.7 USDA projected total 1700 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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Corn Strategy

Soybeans - demand is thy name

Even though the potential for extraordinarily good demand for soybeans has been on the books for a long time, it had been mostly dismissed — until recently, that is. Now, the trade is having to come to grips with the struggle end users are having to fill those commitments. Weekly soybean export inspections (101.7 million bushels) hit a new record this past week, not only for soybeans, but also for any grain/oilseed. The weekly pace will stay high this winter to fill record sales already on the books, mostly to China. Sources in the Far East indicate Chinese imports are going to strengthen. No one is forecasting any new monthly records this year, but we wouldn’t be surprised to see one, if not a new all-time high

for any month. Their crush margins are currently thought to be near 200 Yuan per metric ton, or 89 cents per bushel. That’s a far cry from the 500 Yuan losses ($2.22 per bushel) they had in the first half of 2014. At the same time, large soybean meal shipments are finally starting to fill the record sales that had been made during the last number of months. Shipments so far this fall had been stymied by the limited old-crop supplies and the slow entrance of new supplies into the pipeline because of the slow start to harvest. But with new-crop soybeans finally flowing into the pipeline, and exceptionally good crush margins, the crush pace will accelerate, fulfilling expectations for a near record use this year. Last December’s crush of 173.9 million bushels was the largest monthly crush in history. With Illinois processing margins more than $4 per bushel, and strong domestic and export demand for soybean meal, that should be eclipsed this year, maybe even for a few months.

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ü2013 crop: The ability to hold gains during harvest adds to indications we may have seen an important low. Nevertheless, it may take until spring for prices to reach acceptable levels. If you still have old crop, storing it for the long haul should pay dividends. ü2014 crop: Market action continues to indicate potential to reach a new short-term high, but significantly higher levels aren’t likely. We may add a small sale if December futures move to $3.85; check the Hotline frequently. Use forward bids or hedge-toarrive contracts against May futures to take advantage of the carry when pricing corn. We still see higher levels yet, but they may not come until spring/summer. vFundamentals: In the short term, the Nov. 10 USDA report could bring some volatility. But with harvest starting to wind down, cash selling pressure will diminish. We consistently hear end users are having difficulty covering their needs in the cash market. Producers will likely remain stingy marketers.

Page 11 • Monday, November 10, 2014 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: Demand remains the cornerstone keeping soybean prices moderately strong. Even though the crop is abundant, demand is overwhelming short-term producer selling. Target a move to $10.90 on January futures for catch-up sales. We might even add a small sale; check the Hotline frequently. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: As we have long said, demand for soybeans and soybean meal was going to be a positive ingredient in the post-harvest period. Last week’s 101.8 million bushel weekly inspections were a weekly record for any grain. Soybean meal shipments were equally as robust at 307,600 tons, just shy of their all-time record. Crush margins are strong, more than $4 per bushel at Illinois plants. Planting activity is finally accelerating in Brazil, but the moisture they are finally receiving is still a lit-

tle less than normal. Argentina is dry, but they need that after heavy rains last month.

Wheat Strategy

ü2014 crop: A December contract of $5.50 remains for catch-up sales. Producers holding wheat may continue to do so with the goal of making new sales near $6. ü2015 crop: We see little reason to price new crop unless Chicago July is more than $6. vFundamentals: Wheat futures turned lower last week on continued export weakness and better new U.S. crop prospects. Both the weekly

shipments and sales numbers were disappointing. The U.S. again failed to show up on the offer sheet for an Egyptian tender. The outlook for soft red winter wheat improved now that harvest is wrapping up in the Eastern Corn Belt where plantings have been delayed. Weather is still supporting the complex, though, as drought conditions are taking the top end off of production potential for Russia and Ukraine. Traders will be eager to see how those considerations will influence USDA’s world production estimate Monday.

FarmWeek • Page 12 • Monday, November 10, 2014

Farmers, did you know?

Through their eyes

Photo by Ken Kashian

Dairy tour provides experiences, information for field mom concerns

Editor’s note: Field moms with Illinois Farm Families (IFF) toured the Hampshire dairy farm of Dale and Linda Drendel and Dean Food’s Huntley milk processing and distribution plant. IFF is a coalition of commodity groups for beef, corn, dairy, pork, soybeans and Illinois Farm Bureau. Below are excerpts from the Chicago-area moms’ blogs that may be read online at {watchusgrow.org}.

Veronica Ortega, Berwyn: As a mom, I’m at the grocery store about two to three times per week, and I always make a stop at the dairy aisle to pick up some milk. Once I’m at the dairy section, I always wonder if I’m making the right decision of milk product for my family ... When I purchase the cheaper store brand milk product, I wonder if I made the right choice. I often ask myself Heather Caulfield, Mount if my family is missing out on Prospect: Should I worry nutrients by purchasing the about the hormones found in cheaper conventional milk ... milk such as the added horAs many households can mone rBST or rBGH? Apparagree, milk is a staple in our ently not. household. I have two growing Somatrotropin, the protein boys, 11 and 8 years old, and hormone rBST, is naturally milk gallons disappear as occurring in milk, and often quickly as they are replenished. added as well. As humans we (Touring Drendel’s Dairy don’t recognize this hormone Farm in Hampshire), we and our bodies destroy it comlearned the difference between pletely. It has been tested and conventional and organic milk. proven to be safe ... The difference here is that Is it more beneficial to drink organic dairy farmers have to raw milk versus pasteurized ensure they don’t give their milk? No, absolutely not. Raw cows any type of antibiotics ... milk may contain bad bacteria After learning all this inforsuch as E. coli and salmonella. mation regarding dairy Not something I want to be exposed to by choice. Tour impacts dairy views milk, I feel so glad about purchasing conventional Overall, I came away Field moms affiliated with Illinois milk for my family. Not from this tour relieved. I Farm Families reported increased only is it delicious and was impressed with how knowledge and fewer concerns after healthy for us, but convenhumanely the cows were touring Dale and Linda Drendel’s dairy tional milk is the best treated, and how clean the farm and a milk bottling plant. choice for me. farm and milk processing • After the tour, 10 percent of particiI’m not going to spend facilities were kept. I trust pating moms remained concerned about the process I saw, and feel nutritional value of dairy products com- double the money for organic brands knowing it’s that if I were in the same pared to 80 percent before the tour. • After the tour, 10 percent of moms absolutely no different in shoes as the farmer and nutritional value than reguprocessing plant, I would remained concerned about how dairy farmers use artificial growth hormone, lar milk, and I’m certainly operate in the same way. down from 70 percent before the tour. not going to spend money • After the tour, no moms showed on the other nondairy milk Jill Thurmond, Deer concern about antibiotic use on dairy Park: Do you know what farms compared to 60 percent with con- items that contain more sugar and less nutrients you were doing 48 hours cerns before the tour. than dairy milk. ago? It’s lunchtime for me right now so I was probably eating a quick lunch … Depending on when you bought your most recent container of milk, it could have been milked from the cow a mere 48 hours before! I’m not kidding — most milk goes from cow to bottling plant to store in 48 hours. Sometimes, it’s on the shelves the same day or if a day falls in there that the plant is closed ... then perhaps 72 hours — that was much faster than I expected! (On the Drendel farm) one of the best things that I learned is how fresh the milk is that I buy (on a very regular basis I might add!) at my local store. The cows on the Drendel’s farm are milked twice a day ... and then the milk is picked up by a truck daily. It is taken to the processing facility and in the case that it’s taken to Dean’s to become “fluid milk” ... it is tested, pasteurized, tested again (including for taste), bottled and sent out to the stores VERY quickly.

Did you know, while you’ve been involved with harvest, consulting with landlords and/or tenants, planning for next year’s crop season, listening to campaign ads and going to high school football games, that USDA programs and employees have been there with you? You may not have seen COLLEEN us, but we’ve CALLAHAN been there. From 2009 through 2013, here’s how: • USDA made investments to help 493 rural businesses in Illinois grow and succeed. Those investments range from advanced biofuel manufacturing facilities to food hubs to small businesses working to take advantage of emerging markets for rural-made products. • USDA invested $49 million to help rural manufacturers in Illinois increase production and capacity. That investment supports 82,874 rural manufacturing jobs in Illinois. • USDA helped 33,163 Illinois families buy or repair homes. Those investments support the affordable housing that is critical to maintaining the rural labor force. • USDA invested $139.9 million to support new and improved broadband service for rural Illinois families. That investment helps expand

access to health care, education and cultural resources, and it allows rural businesses to compete in the global economy. • USDA has invested more than $257 million in Illinois rural water systems. That investment means more than 868,000 rural Illinois families now have access to clean, safe water and improved health. • USDA has invested more than $110.528 million to improve community facilities throughout rural Illinois. This investment allows 557,736 rural residents in Illinois to enjoy improved health care, library access, fire protection and so much more. Did you know, from individual housing needs and business support to strengthening an entire community, your partner in your rural community is USDA Rural Development? Whether this is new information or just a reminder to you, please remember the impact your USDA partner makes across Illinois. When there are needs in your community, ask how USDA Rural Development can help. Our programs and our people are focused on “increasing economic opportunity and improving the quality of life for all rural Americans.”

Colleen Callahan serves as Illinois director for USDA Rural Development.

Letter to the editor

‘Waters of U.S.’ represents government overreach

Editor: Concerning Edward Ragsdale’s letter to the editor (“EPA rule would increase electricity rates”), I agree. EPA’s rule on “waters of the U.S.” is excessive overreach. And why can’t coal-fired power plants be converted to burn natural gas? Natural gas has only half the pollution of coal. And why are we allowing prime farmland to be destroyed by longwall coal mining with subsidence? Once the coal is removed by long-

Letter policy Would you like to share information or an opinion with FarmWeek readers? Consider submitting a Letter to the Editor. Please limit your letter to 300 words. Include your name, address and phone number. Your phone number will not be published; it will simply help us verify letter authorship.

wall coal mining, the land will subside. Just drive Illinois 185 between Coffeen and Hillsboro, and study the signs along the road. I happen to think that it is illegal for counties to sell coal rights under surface property they do not own. The coal producers should be required to own the surface before being allowed to do longwall coal mining. Go visit Montgomery and Macoupin counties. What do other surface owners think? There is no such thing as “clean coal” when it is burnt! HERBERT WODTKE Loogootee

Only one letter per writer will be accepted in a 60-day period. All letters will be subject to editing. Far mWeek will not publish political endorsements. You can mail letters to: FarmWeek Letters, 1701 Towanda Ave., Bloomington, Ill. 61701, or email CAnderson@ilfb.org.